Template-Type: ReDIF-Article 1.0
Author-Name: Theo Hitiris
Author-X-Name-First: Theo
Author-X-Name-Last: Hitiris
Title: Health care expenditure and integration in the countries of the European Union
Abstract:
National health care differs between the member states of the European
Union in the quality and quantity demanded and supplied, reflecting
different economic structures and health care organization and delivery
systems. Since health care expenditure depends primarily on the level of
economic development and the structure of the population, only convergence
in economic performance and the standards of living can lead to
convergence of health expenditure standards.
Journal: Applied Economics
Pages: 1-6
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327335
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327335
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:1-6
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: The Phillips curve, parameter instability and the Lucas critique
Abstract:
Empirical estimation of Phillips curve relationships typically indicates
the presence of parameter instability. This is argued to be due to the
fact that the parameters of these equations are reduced form rather than
structural parameters. Estimation of a Phillips curve model by methods
which allow for time-varying parameters permits investigation of the
nature and timing of the structural breaks which generate instability.
This paper estimates such a model by the Kalman filter using quarterly
data over the period 1972.4 to 1993.3. We find evidence of a gradual
decline in the private sector's assessment of the steady-state inflation
rate during the 1980s, but little evidence of the sort of dramatic regime
shift predicted by some of the more extreme rational expectations models.
Journal: Applied Economics
Pages: 7-10
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327344
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327344
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:7-10
Template-Type: ReDIF-Article 1.0
Author-Name: Abid Burki
Author-X-Name-First: Abid
Author-X-Name-Last: Burki
Author-Name: Mushtaq Khan
Author-X-Name-First: Mushtaq
Author-X-Name-Last: Khan
Author-Name: Bernt Bratsberg
Author-X-Name-First: Bernt
Author-X-Name-Last: Bratsberg
Title: Parametric tests of allocative efficiency in the manufacturing sectors of India and Pakistan
Abstract:
This paper estimates allocative inefficiency in the manufacturing sectors
of India and Pakistan. Based on an extension of the translog profit
function approach, we propose a new method to the estimation of allocative
inefficiency in two countries (or groups). The model is estimated using
pooled annual data from the large scale manufacturing sectors of India and
Pakistan over the period 1959-87. We find evidence of allocative
inefficiencies in both countries. Specifically, results reveal that
manufacturing firms in the two countries over-utilize capital and raw
materials relative to labour and energy. The magnitude of over-utilization
of capital is more severe in Pakistan than in India. We argue that these
findings are hardly surprising given the structure of factor markets and
past government policies in the two countries.
Journal: Applied Economics
Pages: 11-22
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327353
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:11-22
Template-Type: ReDIF-Article 1.0
Author-Name: Francis Cheung
Author-X-Name-First: Francis
Author-X-Name-Last: Cheung
Author-Name: Maw Lin Lee
Author-X-Name-First: Maw Lin
Author-X-Name-Last: Lee
Author-Name: Yi-Chen Wu
Author-X-Name-First: Yi-Chen
Author-X-Name-Last: Wu
Title: Endogenous export prices and the Taiwan-US trade imbalance
Abstract:
To explain the perplexing issue of why Taiwan's trade imbalance with the
US has persisted despite the depreciation of the dollar, we estimate a
four equation model to determine the direct pass-through (DPT) and
indirect cost adjustment (ICA) effects of exchange rate changes on
Taiwan's export prices. The ICA effect is important in the case of Taiwan
because it imports mostly intermediate goods for the production of
manufactured goods that are exported. Our findings support the view that
DPT and ICA effects reduce the effectiveness of exchange rate as a
mechanism for international trade adjustment.
Journal: Applied Economics
Pages: 23-31
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327362
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327362
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:23-31
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Lindh
Author-X-Name-First: Thomas
Author-X-Name-Last: Lindh
Author-Name: Tomas Lindstrom
Author-X-Name-First: Tomas
Author-X-Name-Last: Lindstrom
Title: Structural breaks in financial share, savings and growth in OECD: 1960-92
Abstract:
Indivisibilities in extending financial markets imply level shifts in the
financial cost share. This could induce growth and savings slumps. We
search for structural breaks in the financial sector share of seven OECD
countries and relate these to changes in GDP growth and the savings share.
The event patterns of these macro series are classified and weighted by
typicities. Financial structural breaks are associated with decreased
savings but ambiguous with respect to growth. We conjecture that most of
the period is a successive transition to increasing financial shares
accompanied by lower savings and more sluggish growth.
Journal: Applied Economics
Pages: 33-41
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327371
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327371
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:33-41
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Alyousha
Author-X-Name-First: Ahmed
Author-X-Name-Last: Alyousha
Title: Investigating Bahrain business cycles
Abstract:
The motive of this paper is to study and hence establish stylized facts
for the small oil producing economy of Bahrain using time series
techniques. This is done by estimating persistence in GDP and its two main
components (oil and non-oil GDP) and by testing for the macroeconomic
variables driving the non-oil business cycles. Applying these techniques
to Bahrain data show: (i) GDP, non-oil GDP and oil GDP have little
persistence, so that an innovation at the level of these series will have
only transitory effects; and (ii) government expenditure is the only macro
variable that Grangercauses non-oil business cycles.
Journal: Applied Economics
Pages: 43-50
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327380
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327380
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:43-50
Template-Type: ReDIF-Article 1.0
Author-Name: Vijay Bhawnani
Author-X-Name-First: Vijay
Author-X-Name-Last: Bhawnani
Author-Name: K. Rao Kadiyala
Author-X-Name-First: K. Rao
Author-X-Name-Last: Kadiyala
Title: Forecasting foreign exchange rates in developing economies
Abstract:
We investigate the ability of a variety of exchange rate models to
forecast parallel exchange rates for developing economies. In contrast to
earlier studies, which use actual values of the exogenous variables, we
employ time series forecasts of the exogenous variables. An error
correction version of a monetary model proposed by us, that incorporates
the dynamics of both short-run and long-run adjustment processes,
outperforms all other models that have been suggested earlier.
Journal: Applied Economics
Pages: 51-62
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327399
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327399
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:51-62
Template-Type: ReDIF-Article 1.0
Author-Name: S. M. Ahmed
Author-X-Name-First: S. M.
Author-X-Name-Last: Ahmed
Author-Name: M. I. Ansari
Author-X-Name-First: M. I.
Author-X-Name-Last: Ansari
Title: Modelling the efficiency of the Canadian foreign exchange market: a bivariate transfer function analysis
Abstract:
The efficient market hypothesis for the Canadian foreign exchange market
is tested using monthly data on spot and forward exchange rates from
January 1973 to October 1995. Unlike most previous studies, we have
estimated a transfer function model which combines the results of the
univariate time series models with those of the regression model.
Following the convention, equations derived from the market efficiency
models have been used in both level and change specifications. Like many
previous studies, the results from the transfer function model have failed
to provide evidence in support of the efficient market hypothesis. These
findings suggest that significant arbitraging opportunities existed in the
Canadian foreign during the period under study.
Journal: Applied Economics
Pages: 63-70
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327407
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327407
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:63-70
Template-Type: ReDIF-Article 1.0
Author-Name: Kare Johansen
Author-X-Name-First: Kare
Author-X-Name-Last: Johansen
Title: The wage curve: convexity, kinks and composition effects
Abstract:
A detailed analysis is provided of the shape of the wage curve using
annual time series for Norwegian manufacturing. The main results are
summarized as follows. Unemployment affects wages significantly, and we
provide evidence in favour of a monotonically decreasing but highly
non-linear wage curve. The long-term unemployed exert less of a wage
dampening effect than do recently laid off workers, and real wage
responsiveness to unemployment seems also to be stronger with higher
inflation.
Journal: Applied Economics
Pages: 71-78
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327416
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327416
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:71-78
Template-Type: ReDIF-Article 1.0
Author-Name: Cam Donaldson
Author-X-Name-First: Cam
Author-X-Name-Last: Donaldson
Author-Name: Ruth Thomas
Author-X-Name-First: Ruth
Author-X-Name-Last: Thomas
Author-Name: David Torgerson
Author-X-Name-First: David
Author-X-Name-Last: Torgerson
Title: Validity of open-ended and payment scale approaches to eliciting willingness to pay
Abstract:
The open-ended and payment scale approaches to eliciting willingness to
pay (WTP) valuations are compared. Use of the payment scale led to a
higher response rate, a higher rate of completion of the WTP question,
higher mean and median WTP values, a stronger association between WTP and
ability to pay and a higher R2 in regression analysis of WTP on several
independent variables. Taking these results in combination, it can be
inferred that the payment scale technique leads to more valid WTP values
than use of the open-ended approach.
Journal: Applied Economics
Pages: 79-84
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327425
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327425
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:79-84
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Bates
Author-X-Name-First: J. M.
Author-X-Name-Last: Bates
Title: Measuring predetermined socioeconomic 'inputs' when assessing the efficiency of educational outputs
Abstract:
Data envelopment analysis (a mathematical programming technique) has
often been applied to measuring the efficiency with which outputs are
produced. The technique derives efficient combinations of outputs for
given inputs: constant returns to size may be assumed or one may choose to
examine whether decreasing or increasing returns hold true. The technique
was originally developed with cost data as the inputs, but many of the
applications in education have been required to concern themselves with
inputs of a social nature, where the inputs are frequently 'categorized'.
This paper develops a method for measuring these categorized inputs in a
more satisfactory way. A DEA analysis is undertaken of results for the
Local Education Authorities of England in the early 1980s, and is followed
by a stochastic frontier analysis.
Journal: Applied Economics
Pages: 85-93
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327434
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327434
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:85-93
Template-Type: ReDIF-Article 1.0
Author-Name: Tridoyo Kusumastanto
Author-X-Name-First: Tridoyo
Author-X-Name-Last: Kusumastanto
Author-Name: Curtis Jolly
Author-X-Name-First: Curtis
Author-X-Name-Last: Jolly
Title: Demand analysis for fish in Indonesia
Abstract:
The purpose of this study was to determine an aggregate demand function
and the factors influencing the demand for fish in Indonesia during the
period 1967-88. Using a Box-Cox transformation methodology, the double-log
model was found to be appropriate for explaining the demand for fish.
Factors influencing demand were own-price, price of eggs, and per capita
income. Results of static analysis showed an own-price of- 0.102, a
cross-price elasticity for eggs of 0.271, and an income elasticity of
0.506. A dynamic analysis using a Houthakker-Taylor model indicated that
fish consumption depended on psychological food-buying habits of
consumers. Short-run and long-run elasticities, resulting from a partial
adjustment model, implied that per capita consumption of fish is growing
at a slow rate.
Journal: Applied Economics
Pages: 95-100
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327443
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327443
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:95-100
Template-Type: ReDIF-Article 1.0
Author-Name: James Giordano
Author-X-Name-First: James
Author-X-Name-Last: Giordano
Title: Returns to scale and market concentration among the largest survivors of deregulation in the US trucking industry
Abstract:
Application of the survivor technique to the 100 largest
less-than-truckload carriers of general commodity freight in the US
interstate trucking industry produces estimates of the ranges of
increasing, constant, and decreasing returns to scale. From 1981 to 1993,
the first thirteen years of deregulation, nearly one-quarter of total
group ton-miles hauled is found to have moved into the more efficient size
range of constant returns to scale. A gain in long-run technical
efficiency is thereby attributed to the Motor Carrier Act of 1980.
Moreover, the survivorship data allow estimates of intragroup market
concentration for each of the same thirteen post-deregulation years.
Concentration purely within this group appears to have remained fairly
moderate and stable since 1981, an unsurprising finding given the modest
minimum efficient size estimated at about 2 million ton-miles hauled
annually. The moderate and stable concentration among the 100 largest is
not necessarily incompatible with other research which finds growing
overall industry concentration since MCA80. It does, however, imply a lack
of market dominance and latent oligopoly.
Journal: Applied Economics
Pages: 101-110
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327452
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327452
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:101-110
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Sophia Eleftheriou
Author-X-Name-First: Sophia
Author-X-Name-Last: Eleftheriou
Title: The efficient hypothesis and deregulation: the Greek case
Abstract:
The impact is examined of the 1988 monetary deregulation in Greece on the
efficiency of the foreign exchange market. A 'news' model reveals that the
deregulation of the monetary system contributed to the presence of an
efficient foreign exchange market.
Journal: Applied Economics
Pages: 111-117
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327461
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327461
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:111-117
Template-Type: ReDIF-Article 1.0
Author-Name: A. D. Owen
Author-X-Name-First: A. D.
Author-X-Name-Last: Owen
Author-Name: K. Chowdhury
Author-X-Name-First: K.
Author-X-Name-Last: Chowdhury
Author-Name: J. R. R. Garrido
Author-X-Name-First: J. R. R.
Author-X-Name-Last: Garrido
Title: Price interrelationships in the vegetable and tropical oils market
Abstract:
The relationship between vegetable and tropical oils prices is
investigated utilizing a vector autoregressive approach. Despite the
apparent similarities between these oil prices in terms of their general
pattern of movement over time, the relationships were not found to be
strong enough to label them as 'cointegrated series'. Further analysis
indicates that substitution relationships appear to drive price movements
in the short run, while market-based structural factors for each of the
oils are important elements in the price formation process in the long
run.
Journal: Applied Economics
Pages: 119-124
Issue: 1
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327470
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327470
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Handle: RePEc:taf:applec:v:29:y:1997:i:1:p:119-124
Template-Type: ReDIF-Article 1.0
Author-Name: John Sawkins
Author-X-Name-First: John
Author-X-Name-Last: Sawkins
Author-Name: Paul Seaman
Author-X-Name-First: Paul
Author-X-Name-Last: Seaman
Author-Name: Hector Williams
Author-X-Name-First: Hector
Author-X-Name-Last: Williams
Title: Church attendance in Great Britain: An ordered logit approach
Abstract:
The church attendance decision of individual economic agents is analysed
within a Becker-style allocation of time framework. Using an ordered logit
model with data derived from the British Household Panel Study (BHPS)
separate attendance equations are estimated for males and females. The
empirical results, in line with previous North American studies, suggest
that labour income variables do account for some of the variation in
attendance. In addition, attendance is found to be correlated with factors
such as denominational affiliation, educational attainment and intensity
of belief.
Journal: Applied Economics
Pages: 125-134
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327209
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327209
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:125-134
Template-Type: ReDIF-Article 1.0
Author-Name: Marcello D'Amato
Author-X-Name-First: Marcello
Author-X-Name-Last: D'Amato
Author-Name: Barbara Pistoresi
Author-X-Name-First: Barbara
Author-X-Name-Last: Pistoresi
Title: Co-movements of OECD growth cycles
Abstract:
The study is of short-run and long-run co-movements and convergence
across 21 OECD real per capita outputs on a sample period spanning 1960 to
1992 using dynamic principal components analysis and coherence analysis.
We reject the hypothesis of convergence, but find evidence for long-run
growth cycles closely related across countries. In particular, the G5
group exhibits the highest degree of economic integration in the long run.
The group of the original members of the Community also exhibits linkages
at high and medium frequencies and represents the most homogeneous area in
Europe in terms of output dynamics both in the long and short run.
Journal: Applied Economics
Pages: 135-144
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327218
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327218
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:135-144
Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsen
Author-X-Name-First: Fredrik
Author-X-Name-Last: Carlsen
Title: Counterfiscal policies and partisan politics: evidence from industrialized countries
Abstract:
According to partisan theories of macroeconomic policy, left-wing parties
are more concerned with unemployment while right-wing parties tend to
weigh the costs of inflation higher. An implication of partisan theories
is that partisan policy differences should depend on the state of the
economy, with left-wing governments conducting relatively more expansive
policies during recessions. We test whether left-wing governments are more
favourably inclined towards countercyclical fiscal policies than their
right-wing counterparts using a panel data set of 18 OECD countries from
1980 to 1992. The results are supportive of partisan theories. The
structural deficit is significantly higher under left-wing governments
when unemployment is high or rising while the ideology of the government
party (parties) has no significant impact on the structural deficit when
unemployment is low or falling.
Journal: Applied Economics
Pages: 145-151
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327227
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327227
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:145-151
Template-Type: ReDIF-Article 1.0
Author-Name: Gregory Amacher
Author-X-Name-First: Gregory
Author-X-Name-Last: Amacher
Author-Name: Peter Feather
Author-X-Name-First: Peter
Author-X-Name-Last: Feather
Title: Testing producer perceptions of jointly beneficial best management practices for improved water quality
Abstract:
This paper examines producer perceptions of jointly beneficial
relationships among best management practices for improved water quality.
Identifying producer tendencies to bundle these types of practices may
increase adoption and lower the costs of voluntary adoption programmes,
particularly those relying on dissemination of information. Unlike
previous studies, perceived changes in environmental quality, as well as
perceived changes in profits, are used to define jointly beneficial
inputs. The econometric model used in the analysis demonstrates that two
of the three management practices considered are perceived to be jointly
beneficial.
Journal: Applied Economics
Pages: 153-159
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327236
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327236
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:153-159
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Plane
Author-X-Name-First: Patrick
Author-X-Name-Last: Plane
Title: Privatization and economic growth: an empirical investigation from a sample of developing market economies
Abstract:
This paper explores the economic determinants of privatization programmes
and the macroeconomic impact of this institutional reform on the growth
rate of the GDP. A sample of thirty five developing market economies is
considered over the 1988-92 period. Probit and Tobit models are used to
identify the determinants of successful privatization programmes. Then
regressions are run where probabilities (Probit) and expected values
(Tobit) are successively included as additional regressors beside the
potential influence of other economic policy variables. A significant
positive effect is highlighted, giving evidence of the importance of
divestiture. The economic effect is found to be stronger when this
institutional reform took place in industry or infrastructure.
Journal: Applied Economics
Pages: 161-178
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327245
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327245
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:161-178
Template-Type: ReDIF-Article 1.0
Author-Name: M. Landesmann
Author-X-Name-First: M.
Author-X-Name-Last: Landesmann
Author-Name: M. Pfaffermayr
Author-X-Name-First: M.
Author-X-Name-Last: Pfaffermayr
Title: Technological competition and trade performance
Abstract:
This paper estimates a demand system for OECD exports differentiated by
country of origin for two ISIC industries (non-electrical machinery,
electrical machinery) and for total manufacturing exports. It develops a
generalized form of the AIDS demand system in which research and
development (R&D) effort enters in a number of ways to affect a particular
supplier's competitiveness: R&D activity relative to competitors affects,
on the one hand, relative cost competitiveness and, on the other hand, the
producer's position in the quality spectrum of products offered on
international markets. One of the interesting insights gained from the
study is that 'effectiveness' of R&D effort can differ much across
different economies. It is conjectured that a country's position in an
international catching-up process may be partly responsible for such
differences as well as labour market dynamics which link increased labour
costs to cost- and quality-improvements.
Journal: Applied Economics
Pages: 179-196
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327254
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327254
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:179-196
Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Title: What differentiates industrial business cycles? A cross-country investigation
Abstract:
Theoretical explanations appear in sharp contrast concerning the
determinants of demand-driven industrial business cycles. Aggregate
factors are likely to differentiate cyclical fluctuations for a given
industry across countries. Industry-specific factors are likely to
differentiate cyclical fluctuations across industries of a given economy.
The differences are evaluated using data for industries producing private
domestic output across a group of major industrial countries. Aggregate
factors dominate industryspecific factors in explaining industrial
cyclical fluctuations in response to aggregate demand shifts. Consistent
with the various explanations, higher variability of aggregate demand
moderates the response of industrial output to aggregate demand shifts
across countries. Contrary to the implications of the new classical
imperfect information model, cyclical fluctuations in industrial output
appear also smaller in response to higher trend price inflation across
countries. Business cycles appear, therefore, to be highly correlated
across industries within countries.
Journal: Applied Economics
Pages: 197-212
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327263
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327263
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:197-212
Template-Type: ReDIF-Article 1.0
Author-Name: Subrata Ghatak
Author-X-Name-First: Subrata
Author-X-Name-Last: Ghatak
Author-Name: Chris Milner
Author-X-Name-First: Chris
Author-X-Name-Last: Milner
Author-Name: Utku Utkulu
Author-X-Name-First: Utku
Author-X-Name-Last: Utkulu
Title: Exports, export composition and growth : cointegration and causality evidence for Malaysia
Abstract:
This paper comprehensively tests the export-led growth (ELG) hypothesis
for Malaysia for the period 1955 - 90, using cointegration and causality
testing based on Hsiao's synthesis of the Granger test and Akaike's
minimum final prediction error criterion. The results provide support for
the ELG hypothesis; aggregate exports Granger-cause real GDP and
non-export GDP. This relationship is found to be driven by manufactured
exports rather than by traditional exports.
Journal: Applied Economics
Pages: 213-223
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327272
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327272
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:213-223
Template-Type: ReDIF-Article 1.0
Author-Name: Oral Williams
Author-X-Name-First: Oral
Author-X-Name-Last: Williams
Author-Name: David Bessler
Author-X-Name-First: David
Author-X-Name-Last: Bessler
Title: Cointegration: implications for the market efficiencies of the high fructose corn syrup and refined sugar markets
Abstract:
The dynamic relationship between the prices of refined sugar and high
fructose corn syrup is investigated using cointegration econometrics. The
analysis is based on observational data, and although results indicate
cointegration between 1984 and 1991 for the most part, alternative
explanations for empirical regularities may exist and should be the
subject of future research.
Journal: Applied Economics
Pages: 225-232
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327281
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327281
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:225-232
Template-Type: ReDIF-Article 1.0
Author-Name: W. Robert
Author-X-Name-First: W.
Author-X-Name-Last: Robert
Author-Name: J. Alexander
Author-X-Name-First: J.
Author-X-Name-Last: Alexander
Title: Inflation and economic growth: evidence from a growth equation
Abstract:
There is little existing empirical evidence on the relationship between
inflation and growth, and much of what evidence there is fails to control
appropriately for growth in real inputs. The present work uses a small
sample of OECD countries for which capital stock and labour force data are
available to investigate, in a pooled time series and cross-section
fashion, the relationship between inflation and growth. Strong evidence is
found contrary to the maintained hypothesis that there should be no
association between inflation and real growth. The weight of evidence is
that, having appropriately controlled for capital and labour inputs,
inflation and its first difference are significantly negatively related to
economic growth.
Journal: Applied Economics
Pages: 233-238
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327290
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327290
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:233-238
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Dickie
Author-X-Name-First: Mark
Author-X-Name-Last: Dickie
Author-Name: Charles Delorme
Author-X-Name-First: Charles
Author-X-Name-Last: Delorme
Author-Name: Jeffrey Humphreys
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Humphreys
Title: Hedonic prices, goods-specific effects and functional form: inferences from cross-section time series data
Abstract:
Tests for two key elements of the hedonic model of price determination
for differentiated goods are proposed when cross-sectional, time series
data are available. First, the hedonic hypothesis, that price is
determined by sellers' and buyers' valuations of characteristics bundled
in a good, is tested against the alternative that consumers demand
specific goods. The sensitivity of the outcome of the test to unmeasured
characteristics, serial correlation or heteroscedasticity, and
misspecification of functional form is assessed. Second, a novel approach
to testing functional form illustrates limitations of testing hedonic
specifications only against alternatives nested in the Box-Cox functional
form.
Journal: Applied Economics
Pages: 239-249
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327308
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327308
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:239-249
Template-Type: ReDIF-Article 1.0
Author-Name: Otto Swank
Author-X-Name-First: Otto
Author-X-Name-Last: Swank
Title: Some evidence on policy makers' motives, macroeconomic performance and output-inflation trade-offs
Abstract:
This paper presents the results of an empirical study of the relationship
between macroeconomic performance and policy makers' preferences for real
output growth and inflation based on quarterly data from 16 countries. The
empirical results indicate that a lower priority to inflation and a higher
real output growth target lead to higher inflation and a less favourable
real output-inflation trade-off, without affecting real output growth.
Journal: Applied Economics
Pages: 251-258
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327317
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327317
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:251-258
Template-Type: ReDIF-Article 1.0
Author-Name: Bharati Basu
Author-X-Name-First: Bharati
Author-X-Name-Last: Basu
Title: Advanced consideration of migration and the choice of destination: a joint decision
Abstract:
This paper fills an important gap in the migration literature by
examining the interrelation between advanced consideration of migration
and other migration decisions such as the choice of destination. It is
shown that advanced consideration of migration via its interaction with
some personal and locational factors can affect the destination choice and
the potential destination characteristics, on the other hand, can trigger
advanced considerations of migration. Furthermore, the results show that
incorporation of advanced consideration of migration helps explain the
anomalies observed in the literature (e.g., it offsets the negative impact
of a high unemployment rate in a region so that migrants would move to a
high unemployment area if they can plan ahead and make an effective job
search).
Journal: Applied Economics
Pages: 259-268
Issue: 2
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327326
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327326
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Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:259-268
Template-Type: ReDIF-Article 1.0
Author-Name: K. P. Kalirajan
Author-X-Name-First: K. P.
Author-X-Name-Last: Kalirajan
Author-Name: Shiji Zhao
Author-X-Name-First: Shiji
Author-X-Name-Last: Zhao
Title: Did the technical efficiency of state enterprises improve with the same speed in all provinces in China?
Abstract:
The objectives of this study are to examine whether technical efficiency
of China's state enterprises improved over time due to the impact of
economic reforms and to examine whether the response rates varied
significantly across provinces. The results carry strong policy
implications for future reforms. The empirical results show that technical
efficiency improved significantly due to economic reforms from 1986 to
1989. Shanghai appears to have responded more quickly and consistently to
economic reforms than other provinces over the period.
Journal: Applied Economics
Pages: 269-277
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327047
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327047
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:269-277
Template-Type: ReDIF-Article 1.0
Author-Name: Craig Gallet
Author-X-Name-First: Craig
Author-X-Name-Last: Gallet
Title: Cyclical fluctuations and coordination in the US steel industry
Abstract:
The model developed uses a measure of the discrepancy between price and
marginal cost to estimate the effects of domestic demand fluctuations on
the degree of oligopoly coordination in the US steel industry. Due to the
importance of imports, however, domestic demand fluctuations occur
whenever market demand and/or import supply shift. Consistent with several
recent game-theoretic models, our results show that coordination among US
steel producers tends to be weakest when market demand is high and import
supply is low.
Journal: Applied Economics
Pages: 279-285
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327056
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327056
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:279-285
Template-Type: ReDIF-Article 1.0
Author-Name: Barton Hughes Hamilton
Author-X-Name-First: Barton Hughes
Author-X-Name-Last: Hamilton
Title: Racial discrimination and professional basketball salaries in the 1990s
Abstract:
Racial differences in professional basketball player salaries are
examined to determine whether the 20% premium paid to whites in the
mid-1980s has persisted into the 1990s. OLS and tobit regressions indicate
no difference between white and black salaries, controlling for player and
team characteristics for the 1994 - 95 season. However, censored quantile
regressions show substantial racial differences at certain points in the
salary distribution. Whites earn less than blacks at the lower end of the
distribution, although the difference is not statistically significant,
and varies with minutes played. In contrast, whites receive a significant
premium (18%) at the upper end of the salary distribution. These findings
are consistent with a form of consumer discrimination in which sports fans
prefer to see white star players, all else equal.
Journal: Applied Economics
Pages: 287-296
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327065
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327065
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:287-296
Template-Type: ReDIF-Article 1.0
Author-Name: Aziz Boussofiane
Author-X-Name-First: Aziz
Author-X-Name-Last: Boussofiane
Author-Name: Stephen Martin
Author-X-Name-First: Stephen
Author-X-Name-Last: Martin
Author-Name: David Parker
Author-X-Name-First: David
Author-X-Name-Last: Parker
Title: The impact on technical efficiency of the UK privatization programme
Abstract:
The level of technical efficiency in nine organizations privatized in the
UK in the 1980s is assessed. Technical efficiency is measured for a number
of years before and after privatization using data envelopment analysis.
This non-parametric method allows efficiency to be measured without having
to specify either the form of the production function or the weights for
the different inputs and outputs used. Nevertheless, inputs and outputs
have to be specified and some assumption has to be made about production
conditions. Consequently, three models are estimated: the first assumes
constant returns to scale; the second allows for variable returns; and the
third adds environmental variables for technological change and the
business cycle to the input/output set. The nine organizations studied
yield mixed results. In some cases there is clear evidence of an
improvement in technical efficiency; in others there is no discernible
impact of ownership on performance.
Journal: Applied Economics
Pages: 297-310
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327074
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327074
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:297-310
Template-Type: ReDIF-Article 1.0
Author-Name: Sophia Dimelis
Author-X-Name-First: Sophia
Author-X-Name-Last: Dimelis
Title: Cyclical and causal relations between real wages and employment in the EU
Abstract:
This paper analyses and compares the joint behaviour of real wages and
employment over the business cycle in the European Union (EU) economies
using both annual and quarterly data since 1960. Further investigation of
the cointegrating properties and the existence of causal effects in the
real wage-employment relation is undertaken by employing appropriate VAR
models. The evidence suggests weak procyclical or acyclic behaviour of
real wages relative to cyclical employment in the quarterly data and
stronger procyclicality in the annual data, thus confirming the
Dunlop-Tarshis result for the majority of the EU economies. With a few
exceptions no cointegrating relations were detected, while the
Granger-causality tests suggest either weak or lack of unidirectional
causality. Finally, the sensitivity analysis showed that the filtering
method has not much influence on the results, but the choice of deflator
may overturn them in certain cases.
Journal: Applied Economics
Pages: 311-324
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327083
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327083
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:311-324
Template-Type: ReDIF-Article 1.0
Author-Name: Weiren Wang
Author-X-Name-First: Weiren
Author-X-Name-Last: Wang
Title: Semi-parametric estimation of the effect of health on labour force participation of married women
Abstract:
This paper uses the semi-parametric method for binary choice models
developed by Wang and Zhou (1995) to estimate the effect of health on the
labour force participation of married women using data from the Panel
Study of Income Dynamics (1989 interviewing year). The semi-parametric
method is particularly useful if empirical studies involve many
explanatory variables and large sample sizes. The estimation results show
that the health condition is a good predictor of participation. The
results also demonstrate that the easy-to-compute semi-parametric method
is practical for empirical studies. Furthermore, the empirical results
suggest that both logit and probit estimators may underestimate the effect
of wives' health conditions on their labour force participation.
Journal: Applied Economics
Pages: 325-329
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327092
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327092
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:325-329
Template-Type: ReDIF-Article 1.0
Author-Name: Isabelle Piot-Lepetit
Author-X-Name-First: Isabelle
Author-X-Name-Last: Piot-Lepetit
Author-Name: Dominique Vermersch
Author-X-Name-First: Dominique
Author-X-Name-Last: Vermersch
Author-Name: Robert Weaver
Author-X-Name-First: Robert
Author-X-Name-Last: Weaver
Title: Agriculture's environmental externalities: DEA evidence for French agriculture
Abstract:
The existence of persistent technical inefficiency offers the opportunity
for a 'free lunch' not typically implied by the neoclassical theory of the
firm. When external effects are related to the use of particular inputs,
reduction of persistent technically inefficient levels of input use
represents a means of reducing external impacts. An important example is
found in agriculture where substantial environmental impacts are generated
by particular inputs. Within this context, this paper considers the
usefulness of data envelopment analysis (DEA) for estimation of potential
input reductions and assessment of potential reductions of environmental
impacts of agricultural inputs. An application for French cereal
production provides estimates that indicate that substantial potential
exists for reduction of input use and environmental impacts.
Journal: Applied Economics
Pages: 331-338
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327100
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327100
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:331-338
Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Granderson
Author-X-Name-First: Gerald
Author-X-Name-Last: Granderson
Title: Parametric analysis of cost inefficiency and the decomposition of productivity growth for regulated firms
Abstract:
This paper examines the contributions of technical change, scale
economies, regulation, and efficiency on productivity growth in the
interstate natural gas pipeline industry. Following Bauer (1990)
productivity growth for firms subject to regulation is decomposed into
technical change, scale economies, regulation, and efficiency components.
The data sample consists of 20 pipeline companies and covers the period
1977 to 1987. Results indicate that scale economies, cost inefficiency,
and regulation on average accounted for 64%, 16%, and 4% of productivity
growth respectively. Cost efficiency declined over the sample period, most
of which can be attributed to technical inefficiency.
Journal: Applied Economics
Pages: 339-348
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327119
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327119
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:339-348
Template-Type: ReDIF-Article 1.0
Author-Name: Jos Van Ommeren
Author-X-Name-First: Jos
Author-X-Name-Last: Van Ommeren
Author-Name: Giovanni Russo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Russo
Title: Are vacancies difficult to fill? an empirical investigation of the Dutch labour market
Abstract:
The search behaviour of employers is focused on by developing a model to
analyse employers' recruitment behaviour taking into account job seekers'
search process. In addition, the causes of anticipated difficulties on
firms' recruitment behaviour that may slow down the process of filling
vacancies is investigated empirically. To do so, a survey is employed
which contains information on the two main problems encountered by Dutch
employers during recruitment: namely, an insufficient number of applicants
and too many rejections of job offers. High educational and experience
requirements are found to cause a low rate of response to the vacancy
posted; offers of permanent positions tend to be rejected by job seekers
due to disagreements on the level of works offered. Further, the condition
of the supply side of the labour market strongly influences employers'
recruitment behaviour, as employers increase their search intensity
whenever problems are anticipated.
Journal: Applied Economics
Pages: 349-357
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327128
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327128
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:349-357
Template-Type: ReDIF-Article 1.0
Author-Name: Kon Lai
Author-X-Name-First: Kon
Author-X-Name-Last: Lai
Title: Is the real interest rate unstable? Some new evidence
Abstract:
Prior studies typically report that real Treasury bill returns have a
unit root. The unit-root findings are not consistent with the long-run
Fisher effect and consumptionbased asset pricing models. This study
examines a data set of ex ante real returns on US Treasury bills and
commercial papers. The statistical analysis employs a new modified
Dickey-Fuller test, whc has better power than standard unit-root tests. In
contrast to previous findings, strong evidence of stationarity is found
for all the real return series under examination. Implications of the
results are discussed.
Journal: Applied Economics
Pages: 359-364
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327137
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327137
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:359-364
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Sumner
Author-X-Name-First: Michael
Author-X-Name-Last: Sumner
Title: More on output expectations in manufacturing
Abstract:
Two misspecifications in a recent study of CBI survey data are corrected;
and the relationship between firms' expectations of output change and
their subsequent perception of the same change ex post, and the utility of
output expectations in forecasting, are examined.
Journal: Applied Economics
Pages: 365-369
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327146
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:365-369
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Chletsos
Author-X-Name-First: Michael
Author-X-Name-Last: Chletsos
Author-Name: Christos Kollias
Author-X-Name-First: Christos
Author-X-Name-Last: Kollias
Title: Testing Wagner's law using disaggregated public expenditure data in the case of Greece: 1958-93
Abstract:
The factors that have influenced the growth of public expenditures have
been the subject of extensive theoretical and empirical research. The
validity of Wagner's law in the case of Greece is tested using
disaggregated public expenditure data for the period 1958-93. The
methodology employed is that of cointegration and the related notion of
error correction. Results reported here suggest that in the case of Greece
only the growth of defence expenditure may be explained in terms of
Wagner's law.
Journal: Applied Economics
Pages: 371-377
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327155
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327155
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:371-377
Template-Type: ReDIF-Article 1.0
Author-Name: Subal Kumbhakar
Author-X-Name-First: Subal
Author-X-Name-Last: Kumbhakar
Title: Efficiency estimation with heteroscedasticity in a panel data model
Abstract:
This paper deals with the estimation of efficiency in a panel data
framework. A oneway error component model (ECM) is generalized to
accommodate firm-specific variances for the inefficiency component. A
multi-step procedure is developed to estimate the cost function and
predict increase in cost due to inefficiency. The model is applied to
examine efficiency of ten major investor owned electric utilities in Texas
during 1966-1985. The production technology is represented by a translog
cost function that is assumed to be the same for every utility (except for
heterogeneous intercepts), but it is allowed to shift over time due to
technical change. The data supports the ECM with firm-specific variances
and rejects the homoscedastic ECM. Cost inefficiency is found to vary
substantially across utilities ranging from 0 to 28%. Technical change is
found to be quite small (less than ± 1%), especially during
1971-1985.
Journal: Applied Economics
Pages: 379-386
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327164
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327164
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:379-386
Template-Type: ReDIF-Article 1.0
Author-Name: Ian Rongve
Author-X-Name-First: Ian
Author-X-Name-Last: Rongve
Title: Statistical inference for poverty indices with fixed poverty lines
Abstract:
The consistency and asymptotic normality of estimators for two classes of
poverty indices, decomposable indices, and Sen-like indices is
demonstrated. Asymptotic variance expressions are obtained that allow for
easy distribution-free statistical inference on the resulting estimates.
An empirical example using Canadian microdata demonstrates the feasibility
and usefulness of the techniques.
Journal: Applied Economics
Pages: 387-392
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327173
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:387-392
Template-Type: ReDIF-Article 1.0
Author-Name: David Whynes
Author-X-Name-First: David
Author-X-Name-Last: Whynes
Author-Name: Darrin Baines
Author-X-Name-First: Darrin
Author-X-Name-Last: Baines
Author-Name: Keith Tolley
Author-X-Name-First: Keith
Author-X-Name-Last: Tolley
Title: Prescribing costs in UK general practice: the impact of hard budget constraints
Abstract:
The development of an internal market in UK public sector health care has
introduced hard budget constraints for those general practitioner
purchasers who elect to hold their own budgets or 'funds'. Prescription
medicines constitute an element of the fundholder's budget and a
theoretical model is developed to explain how hardening constraints might
be expected to impact upon prescribing decisions. The model is based on a
trade-off between prescribing and budget surplus and it predicts, inter
alia, that both the prescribing costs and volume of medicines prescribed
by fundholders will be lower than for non-fundholders. A reduction in
X-inefficiency is also predicted, manifested as a higher rate of generic
prescribing and the use of computerized prescribing management. The model
is found to be consistent with the observed facts in one English health
authority (Lincolnshire).
Journal: Applied Economics
Pages: 393-399
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327182
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327182
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:393-399
Template-Type: ReDIF-Article 1.0
Author-Name: Abdur Chowdhury
Author-X-Name-First: Abdur
Author-X-Name-Last: Chowdhury
Title: The financial structure and the demand for money in Thailand
Abstract:
This paper uses recently developed econometric techniques to investigate
the demand for money in Thailand. Initial estimates show the absence of
any long-term, unique relationship among a monetary aggregate (M1 or M2),
an income and a price variable. However, the introduction of an exchange
rate in the above relationship shows the presence of a cointegrating
relationship. This provides some support to McKinnon's hypothesis of
currency substitution. It also raises some concern about the
closed-economy focus of earlier studies on money demand in Thailand.
Addition of a foreign interest variable to the above models provide some
support to the capital mobility hypothesis. The long-run elasticity
estimates for the M1 equation raise some doubts about the desirability of
using this monetary aggregate as an intermediate target by the Bank of
Thailand. The null hypothesis of a unit income elasticity and zero foreign
interest elasticity are not rejected, but the hypothesis of price
homogeneity is rejected. Moreover, the short-term forecasts of M1 are
biased. On the other hand, the long-run elasticities for the M2 equation
are within the expected range while the equation itself exhibits
structural stability during the sample period and provides unbiased
forecasts.
Journal: Applied Economics
Pages: 401-409
Issue: 3
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327191
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327191
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Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:401-409
Template-Type: ReDIF-Article 1.0
Author-Name: Gwendolyn Morrison
Author-X-Name-First: Gwendolyn
Author-X-Name-Last: Morrison
Title: Willingness to pay and willingness to accept: some evidence of an endowment effect
Abstract:
The source of the disparity between willingness to pay (WTP) and
willingness to accept (WTA) measures of value has been the subject of
recent debate in the literature. This paper presents the results of a
pilot experiment designed to test whether, contrary to the findings of
Shogren et al. (1994), the endowment effect might be a significant source
of the WTP/WTA divergence. The results are a direct contradiction of what
the substitutability argument would predict and, thus, indicate that the
endowment effect cannot yet be dismissed as a possible driving force
behind the disparity.
Journal: Applied Economics
Pages: 411-417
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326903
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326903
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:411-417
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitris Hatzinikolaou
Author-X-Name-First: Dimitris
Author-X-Name-Last: Hatzinikolaou
Title: Does government growth reduce precautionary saving?
Abstract:
The paper extends the constant-relative-risk-aversion model by
endogenizing the Arrow-Pratt coefficient of relative risk aversion. The
empirical application treats this coefficient as a linear function of the
rate of growth of real government expenditure per worker and estimates a
Euler equation for consumption using Greek annual aggregate data for the
period 1960-1993. The results support the view that government growth may
cause a typical consumer to become less risk averse and save less.
Journal: Applied Economics
Pages: 419-423
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326912
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326912
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:419-423
Template-Type: ReDIF-Article 1.0
Author-Name: Leo Kahane
Author-X-Name-First: Leo
Author-X-Name-Last: Kahane
Author-Name: Stephen Shmanske
Author-X-Name-First: Stephen
Author-X-Name-Last: Shmanske
Title: Team roster turnover and attendance in major league baseball
Abstract:
Empirical support is shown for the propositionthat sports fans prefer the
composition of their home team to remain the same from season to season.
Controlling for price, income, population, team quality, league, year, the
stadium effects, the regression results indicate that for each percentage
point increase in the turnover of the composition of the team, attendance
will fall by about 0.7%. The implications of this heretofore ignored
tendency are briefly discussed.
Journal: Applied Economics
Pages: 425-431
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326921
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326921
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:425-431
Template-Type: ReDIF-Article 1.0
Author-Name: Manolis Kavussanos
Author-X-Name-First: Manolis
Author-X-Name-Last: Kavussanos
Title: The dynamics of time-varying volatilities in different size second-hand ship prices of the dry-cargo sector
Abstract:
This paper examines the dynamics of conditional volatilities in the world
dry-bulk market for second-hand ships. In particular, it models and
compares volatility estimates between different size vessels using monthly
data. The recently developed class of autoregressive conditional
heteroskedasticity (ARCH) models are utilized for this purpose. It is
found that broadly speaking prices of small vessels are less volatile than
larger ones, and the nature of these volatilities vary across sizes.
Panamax volatilities are mostly driven by old 'news', while new shocks are
more important for Handysize and Capesize volatilities. Furthermore,
conditional volatilities of Handysize and Panamax prices are positively
related to interest rates and Capesize to time-charters.
Journal: Applied Economics
Pages: 433-443
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326930
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326930
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:433-443
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Gould
Author-X-Name-First: Brian
Author-X-Name-Last: Gould
Title: Consumer promotion and purchase timing: the case of cheese
Abstract:
The dynamics of cheese purchases is analysed by estimating a series of
econometric models of duration based on a 170 week household panel.
Besides purchase quantity and price data, information with respect to
coupon use and household demographic characteristics are used in a variety
of models which build upon each other in terms of assumed distribution of
interpurchase time, effect of previous purchases, role of demographic
characteristics and effect of unobserved interpurchase time heterogeneity.
Likelihoodratio tests clearly reject the null hypothesis that coupon use
has no impact on cheese purchase timing.
Journal: Applied Economics
Pages: 445-457
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326949
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326949
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:445-457
Template-Type: ReDIF-Article 1.0
Author-Name: Atanu Saha
Author-X-Name-First: Atanu
Author-X-Name-Last: Saha
Author-Name: Arthur Havenner
Author-X-Name-First: Arthur
Author-X-Name-Last: Havenner
Author-Name: Hovav Talpaz
Author-X-Name-First: Hovav
Author-X-Name-Last: Talpaz
Title: Stochastic production function estimation: small sample properties of ML versus FGLS
Abstract:
Just-Pope production functions have been traditionally estimated by
feasible generalized least squares (FGLS). This paper investigates the
small-sample properties of FGLS and maximum likelihood (ML) estimators in
heteroscedastic error models. Monte Carlo experiment results show that in
small samples, even when the error distribution departs significantly from
normality, the ML estimator is more efficient and suffers from less bias
than FGLS. Importantly, FGLS was found to seriously understate the risk
effects of inputs and provide biased marginal product estimates. These
results are explained by showing that the FGLS criteria being optimized at
the multiple stages are not logically consistent.
Journal: Applied Economics
Pages: 459-469
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326958
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326958
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:459-469
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Ayuso
Author-X-Name-First: Juan
Author-X-Name-Last: Ayuso
Author-Name: Maria Perez-Jurado
Author-X-Name-First: Maria
Author-X-Name-Last: Perez-Jurado
Title: Devaluations and depreciation expectations in the EMS
Abstract:
This paper proposes a method to estimate separately the size of the
expected depreciation in an eventual devaluation of the central parity in
the ERM, and the probability assigned by agents to this devaluation
occurring in the short run. The proposed method complements the
information provided by the jumps observed in market exchange rates around
realignments with the information contained in interest rate differentials
on the future behaviour of exchange rates. The separation of probability
and size allows a richer analysis of the effects of devaluations on
exchange rate credibility in the ERM.
Journal: Applied Economics
Pages: 471-484
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326967
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326967
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:471-484
Template-Type: ReDIF-Article 1.0
Author-Name: Oluwole Owoye
Author-X-Name-First: Oluwole
Author-X-Name-Last: Owoye
Title: Income velocity and the variability of money growth: evidence from less developed countries
Abstract:
This paper examines whether the variability of money growth caused
changes in income velocity of money in 30 less developed countries.
Time-series data show year-to-year variations in income velocity of money
in these countries for the 1961-1990 period. Empirical results based on
causality but complemented by variance decomposition tests show that money
growth is the most important determinant in explaining the variability in
income velocity in at least 20 of the 30 developing countries examined in
this study. In addition, the causality results show that inflation rate
Granger-causes income velocity of money in 21 countries, but the variance
decomposition results show inflation rate to be relatively more important
in explaining the variability of velocity in eight countries. Similarly,
while real income Granger-causes velocity of money in 18 countries, the
results of the variance decomposition tests show real income to be
relatively more important as a determinant of income velocity in two
countries. Overall, these results show that the Grangercausality as a test
of predictability does not show the effects of shocks to one variable on
another, but the variance decomposition test provides evidence with
respect to the effects of shocks.
Journal: Applied Economics
Pages: 485-496
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326976
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326976
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:485-496
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Huttin
Author-X-Name-First: Christine
Author-X-Name-Last: Huttin
Title: Income distribution and consumer demand for health services. The case of prescribed medicines in the USA
Abstract:
The relationship between pharmaceutical expenditures and income is
analysed for a sample of 7981 patients, insured with a private plan
extracted from the American National Medical Expenditures Survey. The
influence of factors such as health status, characteristics of group
versus nongroup health plans and job stability profile on the income
effect in the use of prescribed medicine is investigated. It is found that
the effect of income on pharmaceutical consumption is negative. Probably
clinical and epidemiological factors as well as economic factors are taken
into account in a measure such as income; different income groups reflect
therefore different patterns of use of pharmaceutical services. The income
effect is larger in the case of group plans than nongroup plans. For
patients with a poor health status, the positive effect of health
insurance on the remaining disposable income seems to lead to positive
income effect on pharmaceutical use. Finally a positive income effect on
drug use is observed for patients currently employed, who were laid off
during the period of the survey, but were confident of acquiring a job. So
either positive or negative signs between pharmaceutical use and income
were observed for groups of patients with different health status, job
stability or type of health plans.
Journal: Applied Economics
Pages: 497-503
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326985
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326985
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:497-503
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Miller
Author-X-Name-First: Stephen
Author-X-Name-Last: Miller
Author-Name: Athanasios Noulas
Author-X-Name-First: Athanasios
Author-X-Name-Last: Noulas
Title: Portfolio mix and large-bank profitability in the USA
Abstract:
The US banking system has just emerged from a troublesome period with
many institutions struggling for survival. We examine large commercial
banks during the latter part of the 1980s to determine what factors
affected bank profitability, using both cross-section and pooled
time-series cross-section regressions. Our conclusions are that large
banks experienced poor performance because of a declining quality of the
loan portfolio. Real estate loans generally have a negative effect on
large bank profitability, although not at high levels of significance;
construction and land development loans, the exception, have a strong
positive effect.
Journal: Applied Economics
Pages: 505-512
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326994
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326994
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:505-512
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel
Author-X-Name-First: Rajeev
Author-X-Name-Last: Goel
Author-Name: Daniel Rich
Author-X-Name-First: Daniel
Author-X-Name-Last: Rich
Title: On the adoption of new technologies
Abstract:
We investigate the incentives of private firms to adopt new technologies.
Econometric investigation is performed on a pooled sample of individual US
airline firms over the period 1971 to 1986 for which extensive information
on available jet aircraft technology and fleet choice have been recorded.
Given the incidence of successive commercial aircraft innovations and
variation in production attributes across firms, we are able to consider a
wider array of 'time-dependent' and 'time-independent' adoption influences
than in previous firm-level studies. To the extent that our study provides
useful general insights into adoption decisions by firms, the results have
implications for US global competitiveness policy. One key finding is that
firms subject to increased product market competition exhibit a higher
propensity to adopt technological innovations.
Journal: Applied Economics
Pages: 513-518
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327001
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:513-518
Template-Type: ReDIF-Article 1.0
Author-Name: Arjun Bedi
Author-X-Name-First: Arjun
Author-X-Name-Last: Bedi
Author-Name: Noel Gaston
Author-X-Name-First: Noel
Author-X-Name-Last: Gaston
Title: Returns to endogenous education: the case of Honduras
Abstract:
The rapid expansion of the education sector in developing countries and
the scarcity of public funds have increased the need for an accurate
evaluation of educational policies. Estimates of rates of return to
education have often been used as an integral part of cost-benefit studies
and programme evaluation efforts. This study uses household survey data
from Honduras for 1990 to estimate returns to education that allow for
worker heterogeneity and individual self-selection in the education
process. A sequential estimation procedure is used that enables study of
the interaction between educational attainment and earnings determination.
It is found that accounting for endogenous educational attainment leads to
substantially higher estimated returns to education (compared to
traditional least squares estimates). The possible magnitude of the bias
underscores the importance of recognizing the role of self-selection and
comparative advantage in the education process.
Journal: Applied Economics
Pages: 519-528
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327010
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:519-528
Template-Type: ReDIF-Article 1.0
Author-Name: Mukhtar Ali
Author-X-Name-First: Mukhtar
Author-X-Name-Last: Ali
Author-Name: Richard Thalheimer
Author-X-Name-First: Richard
Author-X-Name-Last: Thalheimer
Title: Transportation costs and product demand: wagering on parimutuel horse racing
Abstract:
Parimutuel horse-race wagering is in many respects like any other
economic good but it differs in one important way from a vast majority of
them. Given the present market arrangement, this good cannot be
transported to the consumer; instead the consumer must travel to the
production site where the good is consumed as it is produced. Thus,
transportation costs must play a crucial role in the demand decision for
horse-race wagering. The consumers incur not only out-of-pocket expenses
for travelling but also the cost of the time required to travel to and to
consume the product. Moreover, consumers incur differential costs in
obtaining the same product because of their locational differences.
Wagering demands are theorized to be the consequence of the choice of
utility maximizing consumers which incorporates this special
characteristic of the product. Models for parimutuel horse-race wagering
are then estimated both for thoroughbred and for harness horse racing in
the state of New Jersey. It is found that both harness and thoroughbred
horse-race wagering are sensitive to travelling costs and both can be
increased by reducing the costs per visit to wagering sites. These costs
can be lowered by reducing the travelling distance of the consumers to the
wagering sites. This can be achieved by increasing the number of racing
days or by simply reallocating a given number of racing days among
different locations. It can also be achieved by increasing the number of
wagering sites and locating them strategically. It is interesting to see
that travelling distance declines non-linearly as the number of racing
days and/or the number of sites is increased and the decline is
insignificant as the number of racing days and/or the number of sites is
increased beyond a saturation point. The unique construction of travelling
costs allows investigation of wagering impacts of an introduction of a new
wagering site or an elimination of an existing one.
Journal: Applied Economics
Pages: 529-542
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327029
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:529-542
Template-Type: ReDIF-Article 1.0
Author-Name: M. I. Ansari
Author-X-Name-First: M. I.
Author-X-Name-Last: Ansari
Author-Name: D. V. Gordon
Author-X-Name-First: D. V.
Author-X-Name-Last: Gordon
Author-Name: C. Akuamoah
Author-X-Name-First: C.
Author-X-Name-Last: Akuamoah
Title: Keynes versus Wagner: public expenditure and national income for three African countries
Abstract:
The public expenditure/income hypothesis has long been debated in
economics. Following Keynes, public expenditure is seen as an exogenous
factor to be used as a policy instrument to influence growth. On the other
hand, Wagner argues that expenditure is an endogenous factor or an
outcome, not a cause, of growth in national income. The purpose of this
paper is to apply both the Granger and Holmes-Hutton statistical
procedures to test the income-expenditure hypothesis for three African
countries-Ghana, Kenya and South Africa. We find that the hypothesis of
public expenditure causing national income is not supported by the data
for these African countries.
Journal: Applied Economics
Pages: 543-550
Issue: 4
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497327038
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497327038
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Handle: RePEc:taf:applec:v:29:y:1997:i:4:p:543-550
Template-Type: ReDIF-Article 1.0
Author-Name: Regina Riphahn
Author-X-Name-First: Regina
Author-X-Name-Last: Riphahn
Title: Disability retirement and unemployment - substitute pathways for labour force exit? An empirical test for the case of Germany
Abstract:
This paper studies the determinants of disability retirement and
unemployment of older workers, two labour market phenomena which the
German public discussion combines under the label of early retirement. The
implicit assumption that these two mechanisms are exchangeable pathways
into permanent retirement is tested. Using panel data the transition rates
from employment into disability retirement and into unemploymentare
estimated and compared. Statistical tests reject the hypothesis that
disability retirement and unemployment are substitutes.
Journal: Applied Economics
Pages: 551-561
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326769
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326769
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:551-561
Template-Type: ReDIF-Article 1.0
Author-Name: Verughese Jacob
Author-X-Name-First: Verughese
Author-X-Name-Last: Jacob
Author-Name: Subhash Sharma
Author-X-Name-First: Subhash
Author-X-Name-Last: Sharma
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Title: Capital stock estimates for major sectors and disaggregated manufacturing in selected OECD countries
Abstract:
Different countries use different methods of estimating net capital stock
at the aggregated as well as at the disaggregated levels. While analysing
cross-country data, for consistency it is important that capital stock
series be estimated by the same method across all the countries in the
model. Out of this necessity, this paper produces consistent (in the sense
that the same method is used across all countries) estimates of yearly net
capital stock from 1970 to 1992 for selected major sectors and
disaggregated manufacturing sectors in 15 OECD countries, namely:
Australia, Belgium, Canada, Denmark, Finland, France, Germany, Iceland,
Italy, Japan, Luxembourg, Norway, Sweden, United Kingdom and the United
States. The major sectors considered are: agriculture, hunting, forestry
and fishing; communications; construction; finance, insurance and real
estate; government service providers; mining and quarrying; retail,
wholesale and hospitality industry; transportation and storage, and total
manufacturing. The disaggregated sectors considered are: food industries,
beverage and tobacco; textile, apparel and leather; wood products and
furniture; paper, printing and publishing; chemical products; non-metallic
mineral products; basic metal industries; fabricated metal products, and
other manufacturing sectors.
Journal: Applied Economics
Pages: 563-579
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326778
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:563-579
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Brown
Author-X-Name-First: Sarah
Author-X-Name-Last: Brown
Author-Name: John Sessions
Author-X-Name-First: John
Author-X-Name-Last: Sessions
Title: Housing, privatization and the 'Right to Buy'
Abstract:
This paper proffers the first formal econometric analysis into the
privatization of public housing under the Conservative Government's 'Right
to Buy' (RTB) legislation. Results reveal that both actual and prospective
RTB beneficiaries exhibit significantly different demographic and
attitudinal characteristics from other owneroccupiers and council tenants.
Given the close links between housing tenure and labour mobility, a closer
analysis of these differences would be informative in any analysis of the
RTB scheme, and in any future review of housing policy.
Journal: Applied Economics
Pages: 581-590
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326787
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326787
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:581-590
Template-Type: ReDIF-Article 1.0
Author-Name: Lucio Sarno
Author-X-Name-First: Lucio
Author-X-Name-Last: Sarno
Title: Policy convergence, the exchange rate mechanism and the misalignment of exchange rates. Some tests of purchasing power parity and generalized purchasing power parity
Abstract:
The paper focuses on the convergence issues and the long-run credibility
of the European Monetary System (EMS), and, more specifically, on the
evaluation of the effectiveness of the Exchange Rate Mechanism (ERM) in
generating a stabilizing effect on real exchange rates across member
countries. For this purpose, we execute some tests of long-run purchasing
power parity (PPP) for an ERM group and a non-ERM group of countries using
both the Engle and Granger procedure and the more powerful Johansen
cointegration technique. We also execute a test of Generalized PPP,
exploiting an idea developed by Enders and Hurn. Testing for PPP in a
multicountry setting may be a useful methodology to identify the optimal
currency area suggested by the data generation process, on the basis of
the reported homogeneity of real exchange rate behaviour of the countries
considered.
Journal: Applied Economics
Pages: 591-605
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326796
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326796
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:591-605
Template-Type: ReDIF-Article 1.0
Author-Name: F. Alejandro Villagomez
Author-X-Name-First: F. Alejandro
Author-X-Name-Last: Villagomez
Title: Private saving, interest rates and liquidity constraints in LDCs: recent evidence
Abstract:
There is still considerable controversy about the interest rate
responsiveness of private saving in developing countries. This paper
provides recent evidence based on individual country estimations for a
sample of 16 countries. The model used here follows the 'uler equation
approach' and includes rational and forward-looking permanent income
consumers together with liquidity-constrained consumers. Overall, for this
sample of countries the results obtained in this paper offer new evidence
of a low responsiveness of saving to changes in the interest rate. My
results also support a strong role of liquidity constraints in these
countries.
Journal: Applied Economics
Pages: 607-615
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326804
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326804
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:607-615
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow
Author-X-Name-First: Michael
Author-X-Name-Last: Marlow
Title: Public education supply and student performance
Abstract:
This paper develops a model of public exchange whereby voters and
education policy makers exchange with one another within school districts.
Because school district consolidation lowers alternatives to
voters-parents, consolidation is hypothesized to raise public education
spending because weakened intergovernmental competition allows policy
makers to promote their own utility, rather than that of constituents.
Models of public education spending and academic performance are estimated
over 1988-1990. While evidence indicates little support for the
traditional treatment of the Leviathan hypothesis that greater competition
lowers public spending, this paper argues that education spending by
itself does not fully provide a valid test of the Leviathan hypothesis
since spending, by itself, does not necessarily indicate the quality of
public education programmes. Empirical evidence indicates that greater
numbers of schools and school districts promote higher student achievement
as evidenced by higher math and verbal SAT scores, math proficiency of 8th
graders, and lower high school drop-out rates. Evidence therefore suggests
that, while greater numbers of school districts and schools are, to some
degree, associated with higher public education spending, higher student
achievement appears to follow as well.
Journal: Applied Economics
Pages: 617-626
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326813
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:617-626
Template-Type: ReDIF-Article 1.0
Author-Name: Stilianos Fountas
Author-X-Name-First: Stilianos
Author-X-Name-Last: Fountas
Author-Name: Agapitos Papagapitos
Author-X-Name-First: Agapitos
Author-X-Name-Last: Papagapitos
Title: Policy credibility in the ERM: evidence from six countries using an ARCH approach
Abstract:
The issue of credibility and capital mobility in the EMS is re-examined
using an alternative methodology, as well as a longer sample period than
previous studies. In particular, the dynamic relationship between interest
rate differentials and the exchange rate risk premium is emphasized. The
relationship between the premium and credibility is then used in order to
identify patterns of credibility in ERM countries. Credibility in the case
of Italy has declined post-1985, as indicated by the rising exchange rate
risk premium. For Denmark, France and Ireland, credibility seems to be
increasing up to the currency crisis period and for Belgium and Holland
credibility increased early in the period and remained high during the
rest of the period.
Journal: Applied Economics
Pages: 627-637
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326822
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326822
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:627-637
Template-Type: ReDIF-Article 1.0
Author-Name: Omer Gokcekus
Author-X-Name-First: Omer
Author-X-Name-Last: Gokcekus
Title: Trade liberalization and productivity growth: new evidence from the Turkish rubber industry
Abstract:
This paper empirically examines the effects of a change in foreign trade
regime on productivity growth. Based on a Generalized Leontief factor
demand function system, total factor productivity growth (TFPG) rates are
calculated for the Turkish rubber industry during a substantial trade
liberalization in the 1980s: TFPG was significantly higher following trade
liberalization. Technological change was the major contributor to this
growth. When a panel data estimation technique is used to explain
technological change, the effects of trade liberalization become clearer:
a one percentage point increase in the protection level led to more than a
one percentage point (1.27) decline in the technological change rate.
Journal: Applied Economics
Pages: 639-645
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326831
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326831
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:639-645
Template-Type: ReDIF-Article 1.0
Author-Name: John Hudson
Author-X-Name-First: John
Author-X-Name-Last: Hudson
Title: Company bankruptcies and births matter
Abstract:
This paper constructs a simple supply orientated model of the economy in
which company bankruptcies which lead to a loss of capital and births have
impacts on macroeconomic variables. Bankruptcies will reduce output,
increase unemployment, worsen the balance of payments and also impact upon
inflation. Empirical work based on data from both the USA and the UK finds
a significant Granger causality relationship between bankruptcies and
births and these four macroeconomic variables. The standard Granger
causality regression is supplemented by non-linear Granger causality
tests.
Journal: Applied Economics
Pages: 647-654
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326840
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326840
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:647-654
Template-Type: ReDIF-Article 1.0
Author-Name: Erkki Koskela
Author-X-Name-First: Erkki
Author-X-Name-Last: Koskela
Author-Name: Matti Viren
Author-X-Name-First: Matti
Author-X-Name-Last: Viren
Title: An occupational choice model of crime switching
Abstract:
A quasi-linear, additively separable utility function is used to describe
preferences between consumption and leisure and analyse occupational
choice between one non-criminal and two criminal activities when
individuals are heterogeneous in terms of their productivity. Occupational
specialization takes place at the individual level according to their
relative productivity in various activities. The aggregate amount of
criminal activity features crime switching; the criminal activity depends
negatively on its probability of detection, its penalty rate if caught and
on the rate of return from alternative criminal activity and positively on
the probability of detection and penalty rate of alternative criminal
activity. Some empirical evidence from Finland about auto thefts and
robberies lies in conformity with crime-switching hypothesis.
Journal: Applied Economics
Pages: 655-660
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326859
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326859
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:655-660
Template-Type: ReDIF-Article 1.0
Author-Name: Matiur Rahman
Author-X-Name-First: Matiur
Author-X-Name-Last: Rahman
Author-Name: Muhammad Mustafa
Author-X-Name-First: Muhammad
Author-X-Name-Last: Mustafa
Author-Name: Daryl Burckel
Author-X-Name-First: Daryl
Author-X-Name-Last: Burckel
Title: Dynamics of the yen-dollar real exchange rate and the US-Japan real trade balance
Abstract:
This paper employs cointegration and error correction models to examine
the dynamics of the yen-dollar real exchange rate and the US-Japan real
trade balance. It uses quarterly data from 1973.I-1993.IV. The unit root
tests reveal non-stationarity in both the variables. The ADF test fails to
affirm any long-run association between the yen-dollar real exchange rate
and the US-Japan real trade balance. Also, there is evidence of
bidirectional short-run Granger causality between these two variables with
mutual feedbacks.
Journal: Applied Economics
Pages: 661-664
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326868
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326868
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:661-664
Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta
Author-X-Name-First: Jati
Author-X-Name-Last: Sengupta
Title: Persistence of dynamic efficiency in Farrell models
Abstract:
This article focuses on productivity transitions from low to high levels
of efficiency over time in the framework of the Farrell efficiency model.
This transition probability approach is applied in two empirical
applications in order to test the persistence of Farrell efficiency over
time. The first application involves the efficiency comparisons in the
public sector, while the second in the private sector. Both applications
appear to exhibit a high degree of efficiency persistence over time.
Journal: Applied Economics
Pages: 665-671
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326877
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326877
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:665-671
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Bodo
Author-X-Name-First: Giorgio
Author-X-Name-Last: Bodo
Author-Name: Andrea Cividini
Author-X-Name-First: Andrea
Author-X-Name-Last: Cividini
Title: Improved estimates of preliminary industrial production data
Abstract:
This study compares Italy's preliminary industrial production index with
the final data and with the performance of alternative forecasts. It also
presents a methodology for providing more accurate estimates of the index
than the original official data. The improvement in accuracy and bias is
obtained using the information contained in the two time series
themselves.
Journal: Applied Economics
Pages: 673-681
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326886
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326886
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:673-681
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Kim
Author-X-Name-First: Benjamin
Author-X-Name-Last: Kim
Title: The cyclical behaviour of prices: G-7 versus non-G7 countries
Abstract:
The cyclical behaviour of prices and inflation is investigated for G-7
and seven non-G7 countries for the postwar period. The quarterly prices
are shown to be clearly countercyclical in the G-7 countries, while they
are much less so in the non-G7 countries. Inflation is shown to move
procyclically and this is more clearly pronounced in the G-7 than non-G7
countries. This discrepancy in results may result from the
demand-management policies that these non-G7 countries have adopted in the
past and this cautions the students of business cycles to pay attention to
the peculiarities of each economy when modelling the business cycle.
Journal: Applied Economics
Pages: 683-691
Issue: 5
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326895
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Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:683-691
Template-Type: ReDIF-Article 1.0
Author-Name: Yousif Khalifa Al-Yousif
Author-X-Name-First: Yousif Khalifa
Author-X-Name-Last: Al-Yousif
Title: Exports and economic growth:some empirical evidence from the Arab Gulf countries
Abstract:
This paper investigates the relationship between exports and economic
growth in four of the Arab Gulf countries, namely, Saudi Arabia, Kuwait,
UAE, and Oman for the period 1973-93. The estimates presented indicate a
positive and significant relation between the two variables. Also, the
statistical adequacy of the models used is supported by the following
diagnostic tests. The Bruesch-Godfrey statistic suggests the absence of
serial correlation. The Farely-Hinich test fails to reject the null
hypothesis that the models are structurally stable. And both the White and
Hausman specification tests show that the models are correctly specified.
Journal: Applied Economics
Pages: 693-697
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326624
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326624
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:693-697
Template-Type: ReDIF-Article 1.0
Author-Name: Nikos Apergis
Author-X-Name-First: Nikos
Author-X-Name-Last: Apergis
Author-Name: John Papanastasiou
Author-X-Name-First: John
Author-X-Name-Last: Papanastasiou
Author-Name: Kostas Velentzas
Author-X-Name-First: Kostas
Author-X-Name-Last: Velentzas
Title: The credibility of policy announcements: Greek evidence
Abstract:
This paper by using error correction (EC) methodology, along with Chow
stability tests, examines whether three cases of policy announcements in
Greece, over the 1975-1995 period, have been considered credible or not by
the public. Focusing on the Phillips curve trade-off, the empirical
findings reveal that two out of three policy announcements are
characterized as credible by private agents.
Journal: Applied Economics
Pages: 699-705
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326633
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326633
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:699-705
Template-Type: ReDIF-Article 1.0
Author-Name: Kathleen Day
Author-X-Name-First: Kathleen
Author-X-Name-Last: Day
Author-Name: Rose Anne Devlin
Author-X-Name-First: Rose Anne
Author-X-Name-Last: Devlin
Title: Can volunteer work help explain the male-female earnings gap?
Abstract:
Using the 1987 Survey of Volunteer Activity in Canada, we examine whether
differential returns to volunteer work in the paid labour market can
explain part of the male-female earnings gap. Male volunteers earn, on
average, about 11% higher incomes than their non-volunteering counterparts
as a result of their volunteer experience, whereas comparable female
volunteers and non-volunteers earn similar incomes. This differential
return across the sexes may be partially explained by the type of
volunteer activity undertaken. Our results indicate that as much as one
third of the male-female earnings gap may be attributable to the fact that
the labour market rewards male and female volunteers differently.
Journal: Applied Economics
Pages: 707-721
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326642
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326642
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:707-721
Template-Type: ReDIF-Article 1.0
Author-Name: Lourdes Moreno
Author-X-Name-First: Lourdes
Author-X-Name-Last: Moreno
Title: The determinants of Spanish industrial exports to the European Union
Abstract:
This paper investigates the determinants of trends in Spain's industrial
exports to the other European Union countries by using a sectoral panel
data approach. The results show that price elasticities of export demand
differ widely among sectors. They also provide support to the idea that
non-price factors have a significant influence on international
competitiveness. In particular they show that technological and
advertising effort have a significant effect not only on the evolution of
exports but also on price elasticity.
Journal: Applied Economics
Pages: 723-732
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326651
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326651
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:723-732
Template-Type: ReDIF-Article 1.0
Author-Name: Namkee Ahn
Author-X-Name-First: Namkee
Author-X-Name-Last: Ahn
Author-Name: Sara La De Rica
Author-X-Name-First: Sara
Author-X-Name-Last: La De Rica
Title: The underground economy in Spain: an alternative to unemployment?
Abstract:
This paper analyses the factors which determine whether an individual
works in the formal sector, in the informal sector, or remains unemployed
in the Spanish labour market. We highlight the implications of high
unemployment on an individual's decision to work in the underground
economy. We postulate that an individual decides (or is chosen) whether to
work in the formal sector or not in a first stage and, if not, in a second
stage decides whether to work in the underground sector or to remain
unemployed. We estimate a bivariate probit model which controls for
selectivity bias in the second stage. The result indicates on the one
hand, that heads of household, who benefit more from social security
provisions obtained in formal sector jobs, are more likely to work in such
sector than others. Besides, demand restrictions seem to operate as
well-individuals with higher education have easier access to the formal
sector. On the other hand, among those who do not work in the formal
sector, the probability of working in the informal sector relative to
being unemployed is higher among those whose head of household works. For
females, the probability of staying unemployed (relative to working in the
informal sector) increases with education, suggesting that highly educated
women prefer to search for a formal sector job rather than to work in the
underground economy. We also examine the job search behaviour among the
informal sector workers.
Journal: Applied Economics
Pages: 733-743
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326660
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326660
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:733-743
Template-Type: ReDIF-Article 1.0
Author-Name: Eirik Amundsen
Author-X-Name-First: Eirik
Author-X-Name-Last: Amundsen
Author-Name: Sigve Tjotta
Author-X-Name-First: Sigve
Author-X-Name-Last: Tjotta
Title: Trade and price variation in an integrated European power market
Abstract:
This paper examines the potential gains in terms of increased social
surplus from integrating the power markets in Europe and assesses the
scope for free seasonal and diurnal trade in a setting of Third Party
Access (TPA). We construct an equilibrium model at the level of the
wholesale markets, taking account of the existing power generating
infrastructure (of varying flexibility) as well as the existing
transmission network interconnecting the countries involved. The model
indicates an overall gain from integrating the power markets. Electricity
prices are substantially reduced for all regions involved, thus implying a
significant redistribution of income from producers to consumers. Trade
flourishes with regions establishing themselves as either pure exporters,
pure importers or as intermediaries acting as transit countries.
Journal: Applied Economics
Pages: 745-757
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326679
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326679
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:745-757
Template-Type: ReDIF-Article 1.0
Author-Name: Raymond Hartman
Author-X-Name-First: Raymond
Author-X-Name-Last: Hartman
Author-Name: David Wheeler
Author-X-Name-First: David
Author-X-Name-Last: Wheeler
Author-Name: Manjula Singh
Author-X-Name-First: Manjula
Author-X-Name-Last: Singh
Title: The cost of air pollution abatement
Abstract:
Data on 100 000 US factories is used to develop comprehensive abatement
cost estimates by industry sector for seven major air pollutants. The
results reveal very high intersectoral variances in marginal and average
abatement costs: maximum/ minimum ratios are frequently near 10, and
occasionally near 100. The implications of these new estimates are
discussed for three policy issues: (1) the relative accuracy of forecasts
from econometric and engineering projections for environmental policy
analysis; (2) the cost of command-and-control regulation of air pollution
in the US; and (3) the use of benefit-cost analysis for setting air
pollution control priorities in developing countries.
Journal: Applied Economics
Pages: 759-774
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326688
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326688
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:759-774
Template-Type: ReDIF-Article 1.0
Author-Name: Leigh Drake
Author-X-Name-First: Leigh
Author-X-Name-Last: Drake
Author-Name: Andy Mullineux
Author-X-Name-First: Andy
Author-X-Name-Last: Mullineux
Author-Name: Juda Agung
Author-X-Name-First: Juda
Author-X-Name-Last: Agung
Title: One Divisia money for Europe?
Abstract:
In 1992 the EU monetary authorities adopted a 'harmonized' broad money
aggregate. The EMI was subsequently established to promote monetary policy
coordination. This paper considers how broad money aggregates might be
used to guide EU monetary policy and whether a 'Euro-Divisia' monetary
index might provide a better guide than a 'Euro-simple-sum' aggregate. Our
findings are based on data from the UK, France and Germany. They indicate
that 'Euromoney' Granger-causes 'Europrices' and that the EuroDivisia
monetary index is a better leading indicator of 'Euroinflation' than the
Euro-simple-sum monetary aggregate.
Journal: Applied Economics
Pages: 775-786
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326697
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:775-786
Template-Type: ReDIF-Article 1.0
Author-Name: Selahattin Dibooglu
Author-X-Name-First: Selahattin
Author-X-Name-Last: Dibooglu
Title: Accounting for US current account deficits: an empirical investigation
Abstract:
The sources of US current account deficits are investigated using a
number of macroeconomic variables and a vector error correction model. The
variables are those typically emphasized by the traditional income -
expenditure approach and the intertemporal (Ricardian) approach. The
results indicate that macroeconomic variables explain the current account
reasonably well, and the evidence seems to support the traditional
approach where budget deficits and increases in real interest rates and
terms of trade are associated with current account deficits.
Journal: Applied Economics
Pages: 787-793
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326705
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326705
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:787-793
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Labeaga
Author-X-Name-First: Jose
Author-X-Name-Last: Labeaga
Author-Name: Angel Lopez
Author-X-Name-First: Angel
Author-X-Name-Last: Lopez
Title: A study of petrol consumption using Spanish panel data
Abstract:
Methods are proposed for the estimation of equations for consumption
categories subject to non-participation and other types of censoring using
an unbalanced panel data set on petrol expenditures from the Spanish
Continuous Family Expenditure Survey. The use of panel data allows one to
deal with two issues that pose econometric problems when dealing with
individual budget data. On one hand, unobserved time invariant
heterogeneity is controlled for. On the other hand, the problem of
censoring in the dependent variable is addressed and the measurement error
induced by infrequent purchases is corrected. Results suggest the use of
probabilities of purchase estimated from the temporal pattern of
expenditure records in order to carry out this correction. The estimated
demand system is subsequently used to simulate the effects of changes in
the taxation of petrol.
Journal: Applied Economics
Pages: 795-802
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326714
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326714
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:795-802
Template-Type: ReDIF-Article 1.0
Author-Name: Swarna Dutt
Author-X-Name-First: Swarna
Author-X-Name-Last: Dutt
Author-Name: Dipak Ghosh
Author-X-Name-First: Dipak
Author-X-Name-Last: Ghosh
Title: Are experts' expectations rational? A multicurrency analysis
Abstract:
Is the exchange rate expectation formation process rational? This age old
question is looked at with survey data on exchange rate expectations at
multiple forecast horizons. This helps to circumvent the risk premium
issue and isolate the exchange rate expectational rationality factor. The
econometric procedure used is the Phillips-Hansen fully modified ordinary
least squares test. This allows one to conduct an unrestricted
cointegration analysis and also differentiate between strong and weak
forms of rationality. To do this separate tests are made of the bivariate
(two currencies) and the multivariate (multicurrency) systems approach.
Rationality in the exchange rate expectation formation process is not
upheld in either the weak or strong form test, at any forecast horizon.
Journal: Applied Economics
Pages: 803-812
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326723
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326723
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:803-812
Template-Type: ReDIF-Article 1.0
Author-Name: Francis Ahking
Author-X-Name-First: Francis
Author-X-Name-Last: Ahking
Title: Testing long-run purchasing power parity with a Bayesian unit root approach: the experience of Canada in the 1950s
Abstract:
A test is made for long-run purchasing power parity with Canadian monthly
and quarterly data from the 1950s using a Bayesian unit-root test
discussed by Koop, but first suggested by Zellner and Siow. Results show
that the hypothesis that the real exchange rate is a stationary process
receives relatively low posterior probability. Put differently, the
probability is low that the nominal exchange rate and the national price
levels have a stable long-run relationship. Furthermore, it is also found
that there are structural differences between the sample period from
October 1950 to May 1962 and the sample period from January 1952 to
November 1960.
Journal: Applied Economics
Pages: 813-819
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326732
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326732
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:813-819
Template-Type: ReDIF-Article 1.0
Author-Name: Duane Rockerbie
Author-X-Name-First: Duane
Author-X-Name-Last: Rockerbie
Title: Are consumers Ricardian when some are liquidity constrained? Evidence for the United States
Abstract:
This paper formulates and estimates a revised specification of Evans'
(1988) test for Ricardian equivalence which incorporates the possible
presence of liquidity constrained consumers. If liquidity constrained
consumers are significant in number, tests using aggregate consumption
data may tend to reject the Ricardian equivalence hypothesis when the
model allows for liquidity constraints. A test which incorporated
liquidity constrained consumers could not reject Ricardian equivalence
over the sample period 1946-91. While the proportion of aggregate
consumption which is liquidity constrained is found to be significant, it
does not appear large enough to affect the test for Ricardian equivalence.
Journal: Applied Economics
Pages: 821-827
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326741
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326741
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:821-827
Template-Type: ReDIF-Article 1.0
Author-Name: Mario Fortin
Author-X-Name-First: Mario
Author-X-Name-Last: Fortin
Author-Name: Abdelkrim Araar
Author-X-Name-First: Abdelkrim
Author-X-Name-Last: Araar
Title: Sectoral shifts, stock market dispersion and unemployment in Canada
Abstract:
Considerable attention has been given in the last ten years to estimation
of the importance of sectoral shifts in explaining short-term fluctuations
in unemployment. Recent studies have used US stock prices data to develop
indexes of sectoral shocks less affected by cyclical influence than
Lilien's employment dispersion index. Two indexes of sectoral shifts for
Canada based on the sectoral dispersion of stock prices growth rates are
calculated. These indexes are then used in unemployment equations
incorporating variables measuring aggregate demand shocks and structural
changes in order to assess the importance of sectoral and cyclical shocks
in the determination of the Canadian unemployment rate. The estimation
leads to the conclusion that the major recessions of 1981-82 and 1990-91
have been caused by aggregate demand shocks. However, both types of shocks
contributed to the 1974-75 recession while the mild recession of 1980 was
accompanied by an important sectoral shock. Estimations also show that the
most important sectoral shock was in 1986, following the drop in energy
prices, but a strong aggregate demand prevented any change in the
unemployment rate at this time. The model also detects an important
structural rise in the unemployment rate during the seventies. On the
whole, the results show that, although sectoral shifts have the potential
to induce short-term unemployment fluctuations, actual changes in the
Canadian unemployment rate were mainly the consequences of monetary
conditions and foreign demand for Canadian goods and services.
Journal: Applied Economics
Pages: 829-839
Issue: 6
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326750
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Handle: RePEc:taf:applec:v:29:y:1997:i:6:p:829-839
Template-Type: ReDIF-Article 1.0
Author-Name: Mandy Ryan
Author-X-Name-First: Mandy
Author-X-Name-Last: Ryan
Title: Should government fund assisted reproductive techniques? A study using willingness to pay
Abstract:
During recent years there has been a growth in the use of assisted
reproductive techniques (ARTs) across Europe, America and Australia. This
has resulted in debates about whether health insurance should cover this
procedure. This study used the closed-ended (CE) willingness to pay (WTP)
technique to establish the value the infertile place on in vitro
fertilization (IVF) treatment in Scotland. The intention is to consider
the use of the economic instrument of WTP for informing the debate on the
public provision of IVF. Assuming that the value of the service outweighs
the cost, public provision should be encouraged. The responses suggested
that users of the service have a mean WTP of over £5000 for an
attempt at IVF. This compares with an average government expenditure of
7pound;2700. The internal validity of the CE WTP was also shown, with
income being positively related to WTP. It is concluded that the CE WTP
technique is potentially a useful tool for policy makers in considering
the public provision of IVF services, and that further work is needed to
establish the reliability and external validity of the technique.
Journal: Applied Economics
Pages: 841-849
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326499
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326499
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:841-849
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Brenton
Author-X-Name-First: Paul
Author-X-Name-Last: Brenton
Title: Estimates of the demand for energy using cross-country consumption data
Abstract:
Using cross-country consumption data we estimate a system of demand
equations in a piecewise manner to investigate whether price and
expenditure elasticities for energy differ between broad groups of
countries. The empirical results reject the assumption of constant
parameters across regimes of poor and rich countries. The derived
elasticities suggest that the own-price elasticity for energy is higher in
poor than in rich countries. We find no evidence for the commonly held
view that expenditure elasticities for energy decline with income.
Journal: Applied Economics
Pages: 851-859
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326507
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326507
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:851-859
Template-Type: ReDIF-Article 1.0
Author-Name: Allan Layton
Author-X-Name-First: Allan
Author-X-Name-Last: Layton
Title: A new approach to dating and predicting Australian business cycle phase changes
Abstract:
Due to well-known lags, counter-cyclical macroeconomic policies often
exacerbate, rather than ameliorate, business cycles. Early recognition of
upcoming phase shifts, particularly contractions, may assist in
fine-tuning such policies. This objective is pursued in the paper by
applying Hamilton's (1989, 1990, 1991) quasi-Bayesian, Markovian,
regime-switching model to monthly growth rates of leading, long-leading
and coincident indexes of Australian economic activity. A simple rule
applied to regime probabilities for each data point of the coincident
index produces a phase chronology that is very similar to that produced by
the Bry and Boschan (1971) turning point algorithm. The regime switching
model is also applied to the leading and long-leading indexes. The
application of a simple rule to the resultant regime probabilities is
found to result in a potentially very reliable advance signalling system
for Australian business cycle phase changes.
Journal: Applied Economics
Pages: 861-868
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326516
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326516
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:861-868
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmood Yousefi
Author-X-Name-First: Mahmood
Author-X-Name-Last: Yousefi
Author-Name: Sohrab Abizadeh
Author-X-Name-First: Sohrab
Author-X-Name-Last: Abizadeh
Author-Name: Ken McCormick
Author-X-Name-First: Ken
Author-X-Name-Last: McCormick
Title: Monetary stability and interest-free banking: the case of Iran
Abstract:
Previous research has suggested that Islamic banking systems may be more
stable than Western systems. However, this contention has only been tested
empirically for the case of Tunisia, a country with no significant history
of Islamic banking. This paper replicates the study done on Tunisia for
the case of Iran, a country with some history of Islamic banking. The
results are mixed, with some evidence both for and against the hypothesis
of greater stability for Islamic banking. It is suggested that a good deal
more work must be done to prove claims about the relative stability of
Islamic banking.
Journal: Applied Economics
Pages: 869-876
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326525
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326525
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:869-876
Template-Type: ReDIF-Article 1.0
Author-Name: Linda Debenedictis
Author-X-Name-First: Linda
Author-X-Name-Last: Debenedictis
Title: A vector autoregressive model of the British Columbia regional economy
Abstract:
We construct a small vector autoregressive (VAR) model to investigate the
usefulness of this approach to forecasting the British Columbia (BC) macro
economy. The forecasts are compared with univariate ARIMA forecasts.
Overall, our results suggest that the accuracy of the VAR matches or
exceeds that of the univariate ARIMA. The accuracy of the predictions from
our VAR model indicates that VAR as a forecasting tool, is a promising
approach for regional forecasting and warrants further investigation.
Formal tests for Granger causality are conducted and we find evidence of
bi-directional causality between BC employment and prices; and
uni-directional causality from BC GDP to both BC employment and Canadian
GDP. Our results also suggest uni-directional causality from Canadian GDP
to both BC employment and prices; and from prices to GDP within BC.
Journal: Applied Economics
Pages: 877-888
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326534
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326534
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:877-888
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Ryan
Author-X-Name-First: Daniel
Author-X-Name-Last: Ryan
Title: The behaviour of productivity growth rates and price-cost margins during contractions and expansions
Abstract:
Panel data on thirteen two-digit US manufacturing industries were
analysed using a random coefficients approach to determine the behaviour
of total factor productivity growth rates and price—marginal cost
ratios during recessions and expansions. Results show: (1) productivity
growth is procyclical—it decreases during recessions and increases
during expansions. In addition, the decrease during recessions is greater
than the increase during expansions; (2) the price-marginal cost ratio is
very asymmetric — it decreases during recessions but shows no
significant movement during an expansion. The lower price-marginal cost
ratio during a recession implies that the elasticity of output with
respect to labour decreases. Thus not only does the level of productivity
fall, but the productivity of labour relative to capital also falls. These
characteristics are consistent with labour hoarding.
Journal: Applied Economics
Pages: 889-893
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326543
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326543
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:889-893
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weber
Author-X-Name-First: Christian
Author-X-Name-Last: Weber
Title: Is cyclical real GNP really more persistent than the trend?
Abstract:
Using an observed components decomposition to estimate permanent and
temporary components of US real GNP, Campbell and Mankiw (1987) found that
the estimated temporary component displays greater persistence than the
estimated permanent component. This suggests that attempts to estimate
separate permanent and temporary components in real GNP are unlikely to
succeed. This finding is re-examined here using a longer real GNP series
and a different decomposition, which guarantees that the estimated
temporary component will be stationary. The resulting estimates of
permanent and temporary output suggests that the temporary component
displays no persistence and that the permanent component exhibits almost
precisely the persistence of a random walk with drift. Cyclical real GNP
is not more persistent than the trend.
Journal: Applied Economics
Pages: 895-902
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326552
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326552
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:895-902
Template-Type: ReDIF-Article 1.0
Author-Name: Geoffrey Soutar
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Soutar
Author-Name: Steven Cornish-Ward
Author-X-Name-First: Steven
Author-X-Name-Last: Cornish-Ward
Title: Ownership patterns for durable goods and financial assets: a Rasch analysis
Abstract:
There has been considerable discussion about the way in which consumers
purchase durable and financial products and a number of modelling
procedures have been used to examine this issue. The present paper
outlines a study that used a new and more general scaling approach (the
Rasch model) for this purpose, using a larger than usual set of durable
goods, as well as a set of financial products. It was found that both sets
of products could be analysed using the Rasch model and that there was an
inherent order in the data. Further, respondents in the sample followed
the same order, suggesting that examining subgroups, as has been done in
the past, would be of little use. A set of respondents'
backgroundcharacteristics was also collected that measured people's
ability and willingness to purchase. It was found that high levels of
ownership were related to people's ability to purchase rather than to
their willingness to purchase. This suggests that the macro, rather than
the micro, environment is likely to be the key to sales for both
categories of products.
Journal: Applied Economics
Pages: 903-911
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326561
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326561
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:903-911
Template-Type: ReDIF-Article 1.0
Author-Name: Einar Bowitz
Author-X-Name-First: Einar
Author-X-Name-Last: Bowitz
Title: Disability benefits, replacement ratios and the labour market. A time series approach
Abstract:
In this paper, a study of factors affecting the number of disability
beneficiaries in Norway is presented. Equations determining entry rates
into the disability benefit system are estimated using aggregated time
series data grouped by sex and age. Unemployment is found to influence
disability entry. The results regarding effects of the replacement ratio
are ambiguous. A model determining the number of beneficiaries, including
the estimated entry equations is presented. The model is used to simulate
the effect of counterfactual changes in exogenous variables on the number
of disability beneficiaries.
Journal: Applied Economics
Pages: 913-923
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326570
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326570
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:913-923
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Rousslang
Author-X-Name-First: Donald
Author-X-Name-Last: Rousslang
Title: International income shifting by US multinational corporations
Abstract:
This paper provides estimates of the amount of income shifted across
national borders within the manufacturing operations of US multinational
corporations (MNCs) in 1988. It is assumed that each MNC arranges its
investments such that, after accounting for income shifting opportunities,
the after-tax rate of return on a marginal investment is the same for all
its affiliates, regardless of location. The income shifting is then
inferred by comparing shares of after-tax profits, assets and sales of the
affiliated members. It is estimated that such shifting amounted to about
$8 billion (on net), which is less than 4% of the worldwide taxable income
of the manufacturing MNCs.
Journal: Applied Economics
Pages: 925-934
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326589
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326589
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:925-934
Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Chambers
Author-X-Name-First: Marcus
Author-X-Name-Last: Chambers
Author-Name: K. Ben Nowman
Author-X-Name-First: K. Ben
Author-X-Name-Last: Nowman
Title: Forecasting with the almost ideal demand system: evidence from some alternative dynamic specifications
Abstract:
The almost ideal demand system is used as a representation of long run
demands in discrete time and continuous time error correction models to
produce forecasts of budget shares beyond the sample period. The estimated
models are subjected to a battery of tests, and an analysis of the
forecasts indicates that continuous time adjustment mechanisms, based
around fully modified estimates of the long run preference parameters,
provide a remarkably accurate method of forecasting budget shares.
Journal: Applied Economics
Pages: 935-943
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326598
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326598
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:935-943
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Andrikopoulos
Author-X-Name-First: Andreas
Author-X-Name-Last: Andrikopoulos
Author-Name: James Brox
Author-X-Name-First: James
Author-X-Name-Last: Brox
Author-Name: Emanuel Carvalho
Author-X-Name-First: Emanuel
Author-X-Name-Last: Carvalho
Title: The demand for domestic and imported alcoholic beverages in Ontario, Canada: a dynamic simultaneous equation approach
Abstract:
The purpose of this paper is to estimate simultaneously dynamic demand
functions and, consequently, income and price elasticities for domestic
and imported alcoholic beverages for the province of Ontario. The
methodology used is the almost ideal demand system, originally developed
by Deaton and Muellbauer (1980), augmented by Pollak's (1970) habit
formation hypothesis. The empirical application uses time series
(1958-1987) for imported and domestically produced spirits, wine and beer.
The findings provide strong support favouring the dynamic version of the
almost ideal demand system over its static alternative, but little
evidence of strong substitution between domestic and imported products.
Journal: Applied Economics
Pages: 945-953
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326606
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326606
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:945-953
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Hazilla
Author-X-Name-First: Michael
Author-X-Name-Last: Hazilla
Title: Separability and capital aggregation in sectoral models of US production
Abstract:
Separability plays a fundamental role in applied studies of production
inasmuch as it provides for consistent aggregation and allows multi-stage
estimation of models with many inputs. This paper examines whether two
types of capital, structures and equipment, are weakly separable from
labour and energy and materials in sectoral models of US production, and
provides an assessment of the effects of maintaining capital separability.
The study focuses on the elasticity of substitution as a measure of input
association and associated standard errors and confidence intervals based
on bootstrapping. Elasticity estimates and tests indicate that capital
separability is generally inconsistent with data representing sectoral US
production. Elasticity sign, however, appears robust to capital
aggregation and performs especially well as an indicator of input
association.
Journal: Applied Economics
Pages: 955-974
Issue: 7
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326615
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326615
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Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:955-974
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Corvers
Author-X-Name-First: Frank
Author-X-Name-Last: Corvers
Title: The impact of human capital on labour productivity in manufacturing sectors of the European Union
Abstract:
The effects of human capital on both the level and growth of labour
productivity in manufacturing sectors in seven member states of the
European Union are analysed, distinguishing between four effects of human
capital: worker, allocative, diffusion and research. Human capital is
represented by the shares of intermediate and highly-skilled workers in
the workforce of a sector. It is shown that the manufacturing sectors can
be divided into three classes of sectors with different intensities of
highly-skilled workers: low-, medium- and high-skill sectors. The
estimation results show that both intermediate and highly-skilled labour
have a positive effect on the labour productivity of a sector, although
the effect is only significant for highly-skilled labour. Moreover, there
are indications of underinvestment of human capital in some manufacturing
sectors. These sectors could improve their competitive position by raising
the employment shares of intermediate and highly-skilled labour. Finally,
intermediate-skilled labour has a significantly positive effect on the
growth in sectoral labour productivity.
Journal: Applied Economics
Pages: 975-987
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326372
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326372
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:975-987
Template-Type: ReDIF-Article 1.0
Author-Name: Evan Tanner
Author-X-Name-First: Evan
Author-X-Name-Last: Tanner
Title: Shifts in US savings: long-run asset accumulation versus consumption smoothing
Abstract:
Recently, savings rates have fluctuated considerably in the USA. The
implications of these movements have interested both policy makers and
economists. This paper considers two reasons why savings may change: (i) a
change in the economy's desired long-run capital stock, and (ii) the
economy's desire to smooth its consumption through time. To identify both
kinds of movements in US savings, the permanent income hypothesis (PIH) is
modified to incorporate discrete breaks. Evidence suggests that discrete
breaks in saving occurred during 1972-74 and again during the mid 1980s.
And, when breaks are accounted for, it is found that rises (falls) in
saving anticipate falls (rises) in output, suggesting that people use
savings to help smooth consumption over time, consistent with the PIH.
Journal: Applied Economics
Pages: 989-999
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326381
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326381
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:989-999
Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Argimon
Author-X-Name-First: Isabel
Author-X-Name-Last: Argimon
Author-Name: Jose Gonzalez-Paramo
Author-X-Name-First: Jose
Author-X-Name-Last: Gonzalez-Paramo
Author-Name: Jose Roldan
Author-X-Name-First: Jose
Author-X-Name-Last: Roldan
Title: Evidence of public spending crowding-out from a panel of OECD countries
Abstract:
The empirical relationship between government spending and private
investment is examined, using a panel of 14 OECD countries. The evidence
suggests the existence of a significant crowding-in effect of private
investment by public investment, through the positive impact of
infrastructure on private investment productivity. Moreover, government
consumption appears to crowd out private investment. The implications of
these results are of foremost importance when it comes to fiscal
consolidation. Deficit reductions engineered through cuts in public
investment could severely impinge on private capital accumulation and
growth prospects.
Journal: Applied Economics
Pages: 1001-1010
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326390
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326390
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1001-1010
Template-Type: ReDIF-Article 1.0
Author-Name: Suk-Joong Kim
Author-X-Name-First: Suk-Joong
Author-X-Name-Last: Kim
Title: Testing the rationality of exchange rate and interest rate expectations: an empirical study of Australian survey-based expectations
Abstract:
This paper examines the rationality of the Australian survey-based
expectations, 1- and 4-week-ahead $US/$A exchange rate and 2 and
4-week-ahead Australian 90-day bank bill and 10-year bond rates. The
actual and expected variables are found to be cointegrated, indicating
that the expected future values and the future realizations of the
exchange rate and interest rates have long-run equilibrium relationships.
OLS estimations with the Newey - West corrections are employed for testing
the unbiased expectations hypothesis (UEH) where the frequency of the
expectations data is finer than the forecast horizons, and the
exponential-GARCH models that take into account the time-varying nature of
the forecasterror variance are employed for testing the weak rational
expectations hypothesis (WREH). The evidence shows that the WREH could not
be rejected in any case, except for the two-week-ahead forecast of the
90-day interest rate, which indicates that all available information is
used at the time of forming relevant forecasts. The UEH, however, is
decisively rejected in all cases. This indicates that strong rationality,
which requires both UEH and WREH, is rejected in all cases. It is
concluded that forecasters are weakly rational; however, their forecasts
are not unbiased because the data available to them when forming
expectations are inadequate.
Journal: Applied Economics
Pages: 1011-1022
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326408
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326408
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1011-1022
Template-Type: ReDIF-Article 1.0
Author-Name: Costas Kanellopoulos
Author-X-Name-First: Costas
Author-X-Name-Last: Kanellopoulos
Title: Public-private wage differentials in Greece
Abstract:
Separate earnings functions for public and private sector by gender are
estimated for Greece with appropriate correction for selectivity bias,
using Family Expenditure Survey data for 1988. Then a comparison of the
average pay, that would be received by public and private sector employees
if they were paid according to the same pay structure, is undertaken. The
empirical evidence suggests that, while the observed pay advantage of male
public sector employees is rather explained by higher qualifications, in
the case of women qualification differences partly explains the observed
public-private wage differential.
Journal: Applied Economics
Pages: 1023-1032
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326417
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326417
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1023-1032
Template-Type: ReDIF-Article 1.0
Author-Name: Kwabena Gyimah-Brempong
Author-X-Name-First: Kwabena
Author-X-Name-Last: Gyimah-Brempong
Author-Name: Rudy Fichtenbaum
Author-X-Name-First: Rudy
Author-X-Name-Last: Fichtenbaum
Title: Racial wage gaps and differences in human capital
Abstract:
This paper uses the Cotton/Neumark decomposition methodology and 1990 CPS
data to investigate the relative importance of labour market structure and
human capital in explaining the white male/Asian, white male/black, white
male/Hispanic wage gaps. We find that labour market structure is more
important than human capital in explaining the white minority wage gaps.
Moreover, most of the labour market structural effects are due to
differential returns to white structural characteristics. Our result is
robust to the specification of human capital. Our results contradict the
results of research that indicate that the white/minority wage gaps can be
explained solely by differences in the endowment of human capital. Our
results have implications for narrowing the wage gaps between whites and
racial minorities.
Journal: Applied Economics
Pages: 1033-1044
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326426
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326426
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1033-1044
Template-Type: ReDIF-Article 1.0
Author-Name: William Crowder
Author-X-Name-First: William
Author-X-Name-Last: Crowder
Author-Name: Daniel Himarios
Author-X-Name-First: Daniel
Author-X-Name-Last: Himarios
Title: Balanced growth and public capital: an empirical analysis
Abstract:
The balanced growth restrictions implied by the neoclassical growth model
imply that output, the private capital stock and the public capital stock
share the same stochastic trend. We analyse the postwar US data on real
output, real private capital stock and real public capital stock and find
that the balanced growth restrictions cannot be rejected by the data.
Removing the common stochastic trend from each series allows the
estimation of output elasticities that is free from the spurious
regression problem. The results support Aschauer's (1989) claim that, at
the margin, public capital is more productive than private capital.
Journal: Applied Economics
Pages: 1045-1053
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326435
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326435
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1045-1053
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Hsing
Author-X-Name-First: Yu
Author-X-Name-Last: Hsing
Title: The Fisher hypothesis revisited: new evidence
Abstract:
The nominal interest rate is examined with the IS-LM model incorporating
the Fisher hypothesis. Eight different interest rates are considered for
different sample periods ending in 1993. When the Livingston survey data
are used, the coefficients for the expected inflation rate, real quantity
of money and government spending are significant in most cases. When the
adaptive expectations model is applied, the coefficients for real quantity
of money and government spending are insignificant in most cases. The
Fisher hypothesis only holds for the federal funds rate or the AAA bond
rate. The linear-form regression can be rejected at the 1% level in favour
of the Box-Cox general functional form.
Journal: Applied Economics
Pages: 1055-1059
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326444
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1055-1059
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Hanson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Hanson
Author-Name: Adam Rose
Author-X-Name-First: Adam
Author-X-Name-Last: Rose
Title: Factor productivity and income inequality: a general equilibrium analysis
Abstract:
Economic growth over the past two decades has failed to reduce income
inequality. We contend that major reasons for this are the slowdown and
bias in technological change (productivity growth). Given the complexity
of the many interactions that take place, this phenomenon is best
addressed in a general equilibrium context. For this purpose, we have
developed a computable general equilibrium (CGE) model with advanced
features relating to income distribution. We perform a series of
simulations based on recent overall productivity changes, but under
various forms of technological change bias, factor mobility, and
government budgetary balance. We find the labour-augmenting technological
change cases to be most consistent with recent experience.
Journal: Applied Economics
Pages: 1061-1071
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326453
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326453
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1061-1071
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Michael Simpson
Author-X-Name-First: Michael
Author-X-Name-Last: Simpson
Title: Residential broadband subscription demand: an econometric analysis of Australian choice experiment data
Abstract:
The recent roll-out of fibre-optic cable suggests that the willingness of
households in passed communities to subscribe to networked services is an
important issue. This paper studies the determination of the demand for
network subscription. Through a discrete choice model the effect of
installation and rental price on the likelihood of subscription is
analysed. The logit regression is based on choice experiment (stated
preference) subscription data obtained from a national survey of
households. Limitations of this preliminary work and suggestions for
future research are discussed.
Journal: Applied Economics
Pages: 1073-1078
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326462
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326462
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1073-1078
Template-Type: ReDIF-Article 1.0
Author-Name: Anne Winkler
Author-X-Name-First: Anne
Author-X-Name-Last: Winkler
Title: Economic decision-making by cohabitors: findings regarding income pooling
Abstract:
Cohabitation rates are increasing in the US but little is known about how
cohabitors make economic decisions. For instance, do female cohabitors
treat their male partner's income as shared household income when choosing
hours worked? Does income sharing differ among types of cohabitors? This
study investigates whether or not cohabitors pool income by drawing
inferences from a generalized model of labour supply. The empirical work
uses data from the 1993 Current Population Survey and the 1987 National
Survey of Families and Households. These data sets provide evidence that
cohabitors, taken as a group, do not pool all income. However, there is
also evidence that cohabitors are not homogeneous in their behaviour;
income pooling is not rejected for cohabitors in longer-term relationships
and for those who have a biological child together.
Journal: Applied Economics
Pages: 1079-1090
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326471
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326471
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1079-1090
Template-Type: ReDIF-Article 1.0
Author-Name: Werner Smolny
Author-X-Name-First: Werner
Author-X-Name-Last: Smolny
Title: Dynamic factor demand in a rationing model
Abstract:
In this paper, a dynamic decision model of the firm with a delayed
adjustment of employment and investment is developed. Special attention is
devoted to dynamic inefficiencies, i.e. underutilizations of the capital
stock and labour hoarding. Market disequilibrium is introduced by allowing
for a sluggish adjustment of wages and prices. The model of the firm is
complemented by explicit aggregation, and the aggregate model is estimated
for the FRG for the period 1960 to 1989. The empirical results reveal that
dynamic adjustment constraints for employment and capital contributed to
the persistence of unemployment in Germany in the 1980s.
Journal: Applied Economics
Pages: 1091-1101
Issue: 8
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326480
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326480
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Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1091-1101
Template-Type: ReDIF-Article 1.0
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Author-Name: Shin-Ichi Kitasaka
Author-X-Name-First: Shin-Ichi
Author-X-Name-Last: Kitasaka
Title: The characteristics of the business cycle in Japan
Abstract:
The present study examines the characteristics of the business cycle in
the Japanese economy by using the Hodrick-Prescot filter, concluding that
a change in consumption is relatively large and that labour input is ficed
in Japan. Fluctuating consumption supports a permanent income hypothesis
in Japan. The fixed labour input is thought to reflect the characteritics
of the Japanese economy, such as a fixed employment custom like the
'lifetime employment system'. This paper presents a simple-stuctured model
of the real business cycle(RBC) and examines its validity by simulation.
It may be concluded that even a simple model with a time-separable
utitlity function and a fixed capital-labour ratio can reproduce the
movement of the Japanese economy.
Journal: Applied Economics
Pages: 1105-1113
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000001
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1105-1113
Template-Type: ReDIF-Article 1.0
Author-Name: Terry Baker
Author-X-Name-First: Terry
Author-X-Name-Last: Baker
Title: Quality-adjusted price indexes for portable computers
Abstract:
Constructing an accurate price index requires controlling for changes in
quality. The potential for bias is especially problemaic for rapidly
changing goods such as computers. This study extends previous research on
quality-adjusted, or hedonic, price indexes for computers by investigating
price and quality changes in portable models. In particular, recent
research by Nelson et al.(1994) and Berndt et al.(1995) on desktop and
portable computers is extended. After adjusting for quality changes, price
indexes in this tudy exhibit average declines of 26% to 33% per year. The
magnitude of quality-adjusted price changes is consistent with these
auhors and with the extensive line of research on quality-adjusted price
indexes for computers of various types. The results emphasize the extent
of potential bias in estimating price level changes if technological
advancement is ignored. Significant potential for bias implies the need to
account properly for changes in quality in consructing indexes for both
individual product categories and for broad economic indicators.
Journal: Applied Economics
Pages: 1115-1123
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000002
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1115-1123
Template-Type: ReDIF-Article 1.0
Author-Name: Lee Mobley
Author-X-Name-First: Lee
Author-X-Name-Last: Mobley
Author-Name: W. David Bradford
Author-X-Name-First: W. David
Author-X-Name-Last: Bradford
Title: Behavioural differences among hospitals: it is ownership, or location?
Abstract:
By about 1988, the consensus among leading health economists was that no
meaningful differences existed among hospitals of differences owernership
form, and this position was embraced by the Antitrust Division of the US
Department of Justice. But behavioural differences among hospitals of
different among hospitals of different owernership has continued to be a
matter of both academic and judicial interest. Recent empirical studies
have concluded that real differences do exist, while many earlier studies
reached the opposite conclusion. This contradiction in finding over time,
as competition intensified, is exactly opposite to what expense-preference
theory would predict. We examine this apparent paradox, using a very
general test of behavioural differences by hospital ownership. We find
that the omission of location-specific variables can lead to biased
estimates of ownership effects, and that no significant behavioural
differences exist among private California hospitals in 1986-90, when this
source of ownership endogeneity is eliminated.
Journal: Applied Economics
Pages: 1125-1138
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000003
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000003
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1125-1138
Template-Type: ReDIF-Article 1.0
Author-Name: Kui-Wai Li
Author-X-Name-First: Kui-Wai
Author-X-Name-Last: Li
Title: Money and monetization in China's economic reform
Abstract:
In addition to privatization marketization, liberalization and
pragmatization, monetization has been argued as the fifth feature in
china's economic reform. If monetization is taken to mean a process
through which variations in money supply or interest rate are to affect
macroeconomic variables, the construction of four causality relationships
between interest rate and investment, and money and national income do not
support the evidence of such a process in China between the late 1970s and
early 1990s.
Journal: Applied Economics
Pages: 1139-1146
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000004
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000004
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1139-1146
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Title: Purchasing power parity in the presence of foreign exchange black markets: the case of India
Abstract:
The empirical validity of $b;PPP$eb; as a long-run constraint between
India and the US is examined in the preesence of foreign exchange black
markets. In a triariate model, the official exchange rate is found to be
coinergrated with both the price ratio and the black market exchange rate.
Both the official exchange rate and price ratio respond to correct
short-run departures from $b;PPP$eb;. Also, both the official and the
black market exchange rates respond to correct departures from their own
equilibrium relation. The two sources of endogeneity in the official rate
follow rate follow as Indian authorities aimed to stabilize domestic
prices and reduce uncertainty about the dollar price of rupees.
Journal: Applied Economics
Pages: 1147-1154
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000005
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000005
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1147-1154
Template-Type: ReDIF-Article 1.0
Author-Name: Daniela De Angelis
Author-X-Name-First: Daniela
Author-X-Name-Last: De Angelis
Author-Name: Stefano Fachin
Author-X-Name-First: Stefano
Author-X-Name-Last: Fachin
Author-Name: G. Alastair Young
Author-X-Name-First: G. Alastair
Author-X-Name-Last: Young
Title: Bootstrapping unit root tests
Abstract:
Unit root tests have been known for a long time to suffer from a variety
of problems. Considering that simulation methods are obvious candidates
for solving some of these problems, the aim of this paper is to assess the
performance of bootstrap tests of the unit root hypothesis of the
Dickey-Fuller type. The results obtained show that boostrap tests have
empirical sizes very close to the nominal ones and deliver rejection rates
generally at least as high as those obtained using simulated critical
points, and are therefore a promising alternative to the latter. The
applications sto non-standard problems such as structural stability
analysis appear to be especially promising.
Journal: Applied Economics
Pages: 1155-1161
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000006
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000006
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1155-1161
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements
Author-X-Name-First: Kenneth
Author-X-Name-Last: Clements
Author-Name: Wana Yang
Author-X-Name-First: Wana
Author-X-Name-Last: Yang
Author-Name: Simon Zheng
Author-X-Name-First: Simon
Author-X-Name-Last: Zheng
Title: Is utility additive? The case of alcohol
Abstract:
The hypothesis of additive utility (or preference independence) is often
applied to the demand for broad aggregates. Recent testing provides some
evidence favourable to the hypothesis, thus overturning the older results
based on the standard asymptotic tests which are seriously biased against
the null in small samples. Using data for seven countries and a variety of
tests, this paper shows that preference independence also cannot be
rejected for more narrowly defined commodities - beer, wine and spirits.
The implications of the results for efficient taxation of alcoholic
beverages are also explored.
Journal: Applied Economics
Pages: 1163-1167
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000007
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000007
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1163-1167
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Seninger
Author-X-Name-First: Stephen
Author-X-Name-Last: Seninger
Title: Jobless spells and re-employment wages
Abstract:
Many studies of job loss attribute the earnings losses associated with
layoffs to the loss of job, occupation, and industry-specific human
capital. This paper estimates the effect of jobless spells on post-layoff
wages using data from the 1984 Panel of Survey on Income Participation for
a sample of adult, white male workers who were permanently laid off
between 1974 and 1984. The estimated impact of jobless spells on starting
wages and survey date wages, several years after re-employment, are
controlled for separations, layoffs, and quits and for individual and job
characteristics. The estimates show that jobless spell durations reduce
starting wages. Wage growth in the new job is lower for workers who
experience long spell durations, a result that suggests acceptance of jobs
which are poor matches compared to other workers who spend less time out
of work following a layoff. The findings support labour force policies
which minimize the amount of time a person is out of work.
Journal: Applied Economics
Pages: 1169-1177
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000008
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000008
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1169-1177
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Baye
Author-X-Name-First: Michael
Author-X-Name-Last: Baye
Author-Name: Robert Maness
Author-X-Name-First: Robert
Author-X-Name-Last: Maness
Author-Name: Steven Wiggins
Author-X-Name-First: Steven
Author-X-Name-Last: Wiggins
Title: Demand systems and the true subindex of the cost of living for pharmaceuticals
Abstract:
This paper investigates the demand for prescription pharmaceuticals at
the retail level. We use complete demand systems to investigate elasticity
for major classes of pharmaceuticals. We estimate both a regular and an
inverse demand system using a differential version of the Rotterdam model.
We find that both systems yield negative, and statistically significant
own-price elasticities. The results indicate that pharmaceutical demand
curves are not perfectly inelastic as some industry commentators suggest.
We use the results of the complete demand system and a variant of a
formula developed by Balk (1990) to derive a cost-of-living subindex for
retail pharmaceuticals. We find that retail pharmaceutical prices using
our index rise faster than wholesale prices, calculated either by the BLS
or by the methods developed by Berndt et al.(1993).
Journal: Applied Economics
Pages: 1179-1190
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000009
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000009
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1179-1190
Template-Type: ReDIF-Article 1.0
Author-Name: Mary Bange
Author-X-Name-First: Mary
Author-X-Name-Last: Bange
Author-Name: William Bernhard
Author-X-Name-First: William
Author-X-Name-Last: Bernhard
Author-Name: Jim Granato
Author-X-Name-First: Jim
Author-X-Name-Last: Granato
Author-Name: Lauren Jones
Author-X-Name-First: Lauren
Author-X-Name-Last: Jones
Title: The effect of inflation on the natural rate of output: experimental evidence
Abstract:
We examine the inflation-output relationship in the USA for the period
1955-90. We start by replicating Smyth (1992) and subjecting his estimates
to a series of diagnostic tests. The model is shown to satisfy conditions
for valid inference (weak exogeneity) and policy analysis
(super-exogeneity) (Engle, Hendry and Richard, 1983). These robustness
checks allow us to study the out-of-sample consequences of the point
estimates for various levels of inflation. One central experimental result
is that for inflation rates exceeding 4% the natural rate of output is
reduced to such an extent that it contributes to a reduction in the growth
rate of real GNP that is below historical trend (3.1% in our sample).
Journal: Applied Economics
Pages: 1191-1199
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000010
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1191-1199
Template-Type: ReDIF-Article 1.0
Author-Name: Eu Chye Tan
Author-X-Name-First: Eu Chye
Author-X-Name-Last: Tan
Title: Money demand amid financial sector developments in Malaysia
Abstract:
Both long and short run real money demand functions of Malaysia with
money variously defined as M0, M1 and M2 have been estimated using the
Johansen cointegration technique and the general-to-specific approach
respectively. The period under review is 1973Q1-1991Q4. While
liberalization and innovation in the Malaysian financial system have not
ruled out the existence of stable long run money demand relationships as
attested to by the presence of cointegrating vectors, they have rendered
short run relationships unstable. Hence, it may not be appropriate for one
to conclude that monetary policy efficacies have been sacrosanct to the
financial liberalization and innovation process on the basis of
cointegrating relationships. This is especially true as monetary policy is
essentially a short run stabilization policy aimed at ironing out undue
macroeconomic fluctuations. This prompted us to re-estimate short run
money demand functions over more recent periods in order to boost the
policy relevance of the estimated parameters.
Journal: Applied Economics
Pages: 1201-1215
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000011
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000011
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1201-1215
Template-Type: ReDIF-Article 1.0
Author-Name: Andre Croppenstedt
Author-X-Name-First: Andre
Author-X-Name-Last: Croppenstedt
Author-Name: Mulat Demeke
Author-X-Name-First: Mulat
Author-X-Name-Last: Demeke
Title: An empirical study of cereal crop production and technical efficiency of private farmers in Ethiopia: a mixed fixed-random coefficients approach
Abstract:
In this paper we use a fixed-random coefficients regression model to
analyse data for cereal growing small-scale farmers in efficiency. Results
show that land size is a major constraint and only small changes in
cultivated area and land quality yield relatively high increments to
output. Larger farms are relatively less productive, everything else being
equal. Human capital in the form of literacy and experience are found to
affect productivity positively. Our findings show a high degree of
farm-specific technical inefficiency. With regard to the inputs we find
high degrees of input-specific technical inefficiency, especially so for
labour and fertilizer. The age structure of the household, environmental
factors and education are found to be weakly correlated with efficiency.
Furthermore, sharecropping is found to be positively correlated with
technical efficiency.
Journal: Applied Economics
Pages: 1217-1226
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000012
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1217-1226
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Hartley
Author-X-Name-First: Keith
Author-X-Name-Last: Hartley
Author-Name: Richard White
Author-X-Name-First: Richard
Author-X-Name-Last: White
Author-Name: David Chaundy
Author-X-Name-First: David
Author-X-Name-Last: Chaundy
Title: Government and industry performance: a comparative study
Abstract:
A number of UK industries are heavily dependent on the government as a
major purchaser. The Ministry of Defence and the National Health Service
are essentially monopsonists for the industries supplying them. As a
monopsonist, government can influence the size, structure, conduct and
performance of the industries. This paper examines wheather industries
relying heavily on government purchases will differ in their structure,
conduct and performance-characteristics and whether dependence on
goverment can have favourable or adverse effects on industry performance.
The hypothesis is tested by comparing the performance of industries
dependent on government purchasing - defence, pharmaceuticals and medical
equipment - with a control group of other non-dependent industries.
Journal: Applied Economics
Pages: 1227-1237
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000013
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000013
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1227-1237
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Johnson
Author-X-Name-First: Paul
Author-X-Name-Last: Johnson
Title: Estimation of the specification error in the expectations theory of the term structure
Abstract:
This paper asks, 'how false is the expectations theory of the term
structure?'. Most previous work has asked, 'is the expectations theory
true?' and finds that it is not. The goal here is to gauge the economic
importance of these answers in the negative by estimating the
specification error in the expectations theory. The variance of the
estimated specification error (suitably normalized) provides a metric for
assessing the validity of the model. I find that, while the expectations
theory can be rejected, the importance of the rejection is much less than
that implied by previous studies, so that the theory may still be a useful
tool for understanding the relationships between interest rates at
different maturities.
Journal: Applied Economics
Pages: 1239-1247
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000014
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000014
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1239-1247
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Witt
Author-X-Name-First: Robert
Author-X-Name-Last: Witt
Title: The demand for car fuel efficiency: some evidence for the UK
Abstract:
This paper uses the Atkinson-Halvorsen (1984) hedonic method to estimate
the effect of petrol price changes on fuel efficiency and other attributes
using data for new cars in the UK. In contrast to Atkinson and Halvorsen,
the estimated long-run petrol price elasticity of demand for fuel
efficiency is very small. The empirical results imply that the adjustment
process within the new car market permits little substitution for more
fuel efficient cars in response to petrol price changes.
Journal: Applied Economics
Pages: 1249-1254
Issue: 9
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000015
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000015
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1249-1254
Template-Type: ReDIF-Article 1.0
Author-Name: Wing-Fai Leung
Author-X-Name-First: Wing-Fai
Author-X-Name-Last: Leung
Title: The duration of international joint ventures an foreign wholly-owned subsidiaries
Abstract:
An international joint venture is formed when the partners contribute
different benefits to the venture. Each party learns from the others
through the joint venture. However, the literature suggests that joint
ventures are unstable. So it is hypothesized that, on average, an
international joint venture will have a shorter duration than a foreign
wholly-owned subsidiary. Data on US foreign direct investment (FDI) abroad
and FDI in the United States are applied to test the instability of joint
ventures. The proportional hazards model is applied while exponential
distribution and Weibull distribution are used to cross-check the results.
On the whole, the results are consistent with the hypothesis. In
particular, the two types of US affiliates are significantly different in
duration although the support for the hypothesis from FDI in the United
States is weak.
Journal: Applied Economics
Pages: 1255-1269
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000016
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000016
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1255-1269
Template-Type: ReDIF-Article 1.0
Author-Name: Yih-Luan Chyi
Author-X-Name-First: Yih-Luan
Author-X-Name-Last: Chyi
Author-Name: Chao-Hsi Huang
Author-X-Name-First: Chao-Hsi
Author-X-Name-Last: Huang
Title: An empirical study of the 'rule of thumb' consumption model in five East Asian countries
Abstract:
We investigate Campbell and Mankiw's 'rule of thumb' consumption model
using data from five East Asian countries. We find that the fraction of
income attributed to the 'rule of thumb' consumers are generally
substantial for these countries. In particular, the fractions for them are
generally higher than those of OECD countries found in previous studies.
Furthermore, the estimates of the fractions are robust to variant
specifications of the 'rule of thumb' consumption model. These results are
favourable to he 'liquidity constraint' justification of the 'rule of
thump' consumption model.
Journal: Applied Economics
Pages: 1271-1282
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000017
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000017
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1271-1282
Template-Type: ReDIF-Article 1.0
Author-Name: Jon Vilasuso
Author-X-Name-First: Jon
Author-X-Name-Last: Vilasuso
Title: The relationship between cash flow and investment in the United States at business cycle frequencies
Abstract:
Journal: Applied Economics
Pages: 1283-1293
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000018
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1283-1293
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cassou
Author-X-Name-First: Steven
Author-X-Name-Last: Cassou
Title: The link between tax rates and foreign direct investment
Abstract:
This paper investigates the impact of tax policy on foreign direct
investment flows between the US and other countries using a panel data
empirical approach. Using panel data is an attractive alternative to using
single time series data because it provides greater statistical power and
offers greater flexibility in terms of explanatory variables. This study
finds many significant factors influencing the transfer of funds component
of foreign direct investment. Most noteworthy is that, in addition to host
and home country corporate tax rates having a significant effect on
investment flows, the host and home country income tax rates are also
significant.
Journal: Applied Economics
Pages: 1295-1301
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000019
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000019
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1295-1301
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaodi Xie
Author-X-Name-First: Xiaodi
Author-X-Name-Last: Xie
Title: Children and female labour supply behaviour
Abstract:
Using the generalized residual method, this paper investigates the
assumption that children are exogenous in the labour supply equations of
married women via alternative regression specifications for the children
variables. The empirical results of this paper suggest that children are
endogenous to the participation decision and likely to be exogenous to the
hours of work decision for married women. Children under age six have a
dramatic negative impact on the labour force participation of married
women. These findings support the implication of the literature relating
fixed costs of employment, including child care costs, to female labour
supply.
Journal: Applied Economics
Pages: 1303-1310
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000020
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1303-1310
Template-Type: ReDIF-Article 1.0
Author-Name: Atanu Saha
Author-X-Name-First: Atanu
Author-X-Name-Last: Saha
Author-Name: Oral Capps
Author-X-Name-First: Oral
Author-X-Name-Last: Capps
Author-Name: Patrick Byrne
Author-X-Name-First: Patrick
Author-X-Name-Last: Byrne
Title: Calculating marginal effects in models for zero expenditures in household budgets using a Heckman-type correction
Abstract:
Using the Heckamn approach, either in single-equation or multi-equation
settings, general expressions are derived for calculating marginal effects
and elasticities. In the conventional calculation of marginal effects,
terms related to the change in the inverse of Mills ratio are omitted.
Using data from the 19877-88 Nationwide Food Consumption Survey, we
calculate income and household size elasticities for 12 food commodities.
We compare the magnitudes and signs of the elasticities using the
conventional expressions of marginal effects and our derived expressions.
Bottomline, sizeable differences, especially in single-equation
applications, can occur in calculating marginal effects if one fails to
account for changes in the inverse of the Mills ratio.
Journal: Applied Economics
Pages: 1311-1316
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000021
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1311-1316
Template-Type: ReDIF-Article 1.0
Author-Name: Tetsuji Yamada
Author-X-Name-First: Tetsuji
Author-X-Name-Last: Yamada
Author-Name: Tadashi Yamada
Author-X-Name-First: Tadashi
Author-X-Name-Last: Yamada
Author-Name: Gordon Liu
Author-X-Name-First: Gordon
Author-X-Name-Last: Liu
Title: Value-added productivity of manufacturing industries in Japan
Abstract:
Journal: Applied Economics
Pages: 1317-1324
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000022
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000022
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1317-1324
Template-Type: ReDIF-Article 1.0
Author-Name: M. O. Odedokun
Author-X-Name-First: M. O.
Author-X-Name-Last: Odedokun
Title: Relative effects of public versus private investment spending on economic efficiency and growth in developing countries
Abstract:
This study investigates the initial and long-run effects of public
investment expenditure on economic growth, especially as compared with
private investment. Annual data over 1970-90 for 48 developing countries
form the basis of the empirical analysis. Our findings suggest that
infrastructural public investment facilitates private investment,
especially in the long-run. It also promotes economic growth and
efficiency whereas non-infrastructural investment does the reverse. Also,
long-term effects of public investment tend to be much more positive than
short-term ones on growth; efficiency and private investments
Journal: Applied Economics
Pages: 1325-1336
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000023
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000023
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1325-1336
Template-Type: ReDIF-Article 1.0
Author-Name: H. Naci Mocan
Author-X-Name-First: H. Naci
Author-X-Name-Last: Mocan
Author-Name: W. James Smith
Author-X-Name-First: W. James
Author-X-Name-Last: Smith
Author-Name: William Tevebaugh
Author-X-Name-First: William
Author-X-Name-Last: Tevebaugh
Title: Credit rationing, deregulation and race in mortgage lending in the United States: 1960-90
Abstract:
This paper examines discrimination in mortgage lending in teh United
States over three decades in 1960 to 1990. We focus on whether
deregulation, increased Federal oversight and enhanced competition reduce
discrimination as becker's theory suggests (Becker, 1971). We find that
discrimination is evident over the three decades taken together, is
prevalent from 1960 to 1980, but is absent in the data from 1980 to 1990.
This finding strongly supports Becker' hypothesis. Preferences for
discrimination appear to be offset by the higher costs fo engaging in them
after 1980.
Journal: Applied Economics
Pages: 1337-1342
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000024
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000024
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1337-1342
Template-Type: ReDIF-Article 1.0
Author-Name: H. Sonmez Atesoglu
Author-X-Name-First: H. Sonmez
Author-X-Name-Last: Atesoglu
Author-Name: Donald Dutkowsky
Author-X-Name-First: Donald
Author-X-Name-Last: Dutkowsky
Title: On the dynamics of balance of payments constrained growth
Abstract:
This paper assesses the dynamic behaviour of policies for resolving trade
deficits. We extend the Thirlwall-based model by introducing an equation
for setting current account policy. Steady-state solutions implying
current account equilibrium emerge under autonomous spending contraction,
exchange rate develuation, export expansion, and import reduction.
Stability holds with plausible restrictions. simulations based upon the
United States reveal that autonomous spending, import, and export policies
behave similarly in correcting trade deficits. Exchange rate devaluation
generates considerably slower adjustment. Corresponding output growth
paths are also examined. The study formally incorporates dynamics into the
Thirlwall approach for analysing balance of paymnets constrained growth.
Journal: Applied Economics
Pages: 1343-1351
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000025
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000025
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1343-1351
Template-Type: ReDIF-Article 1.0
Author-Name: Jong Park
Author-X-Name-First: Jong
Author-X-Name-Last: Park
Author-Name: Penelope Prime
Author-X-Name-First: Penelope
Author-X-Name-Last: Prime
Title: Export performance and growth in China: a cross-provincial analysis
Abstract:
The role of exports in economic growth continues to be debated and tested
in the literature on trade an development. China is a new player in this
debate with its rapid entry into international makrets. This paper extends
some of the previous empirical studies on the relationship between exports
and economic growth in order to assess to what extent China's remarkable
export growth has contributed to the country's overall growth. The study
utilizes data for 26 provinces between 1985 and 1993 in an
export-augmented aggregate production function approach. The results of
our study support the hypothesis that exports have contributed to the
growthh of provincial incomes in China for the period examined with both
the cross-sectional and pooled analyses, with the results being primarily
determined by the coastal provinces compared with inland areas.
Journal: Applied Economics
Pages: 1353-1363
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000026
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1353-1363
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Benito
Author-X-Name-First: Gabriel
Author-X-Name-Last: Benito
Title: Divestment of foreign production operations
Abstract:
This study investigates some determinants fo the divestment of foreign
manufacturing operations by Norwegian companies. To date, very few studies
have taken a closer look at what might influence whether foreign
subsidiaries are divested or not. Although foreign direct investment - in
principle - represent long-term commitments to foreign manufacturing
operations, divestments are in fact quite common. This study shows that
more than half of a sample of foreig subsidiaries woned by Norwegian
companies in 1982 wee divested within a period of ten years. The empirical
findings indicate that foreign divestment is inversely related to economic
growth in the host country, and that the propensity to divest is
significantly higher for subsidiaries that had been acquired than for
greenfield establishments. Also, related (horizontal) subsidiaries are
less likely to be divested than unrelated (non-horizontal)subsidiaries.
Journal: Applied Economics
Pages: 1365-1378
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000027
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1365-1378
Template-Type: ReDIF-Article 1.0
Author-Name: Sara Connolly
Author-X-Name-First: Sara
Author-X-Name-Last: Connolly
Title: A model of female labour supply in which supply is dependent upon the chances of finding a job
Abstract:
In this paper, we extend a model of female labour supply, by considering
the impact of the local labour market. Thus, in our model, a woman
supplies her labour if she has both made the decision to participate and
found a job. This extension is of particular importance in times of high
unemployment when discouraged worker effects will be at their strongest.
We also consider the contribution of such a model to the debate concerning
the labour supply of women married to men who are unemployed.
Journal: Applied Economics
Pages: 1379-1386
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000028
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000028
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1379-1386
Template-Type: ReDIF-Article 1.0
Author-Name: Satya Paul
Author-X-Name-First: Satya
Author-X-Name-Last: Paul
Author-Name: Colm Kearney
Author-X-Name-First: Colm
Author-X-Name-Last: Kearney
Author-Name: Kabir Chowdhury
Author-X-Name-First: Kabir
Author-X-Name-Last: Chowdhury
Title: Inflation and economic growth: a multi-country empirical analysis
Abstract:
The world eocnomy is currently adjusting to a low inflation regime which
has implicastions for the cross-country distribution of world growth
opportunities. In contrast to previous related work which assumes
unidirectional causality, this paper uses the Granger methodology to
examine both the direction and pattern of causality between inflation and
economic growth in 70 countries using annual data over the period 1960-89.
Among the conclusions are that first, the relationship between inflation
and growth is non-uniform across countries: 40% of countries studied
reveal no causality, one-third exhibit unidirectional causality and about
one-fifth of countries show bidirectional causality, second, a vast
majority of countries which show either uni- or bi-directional causality
beong to the industrial group, and third, the low world inflation regime
will on balance redistribute real growth opportunities benefit away from
the developing countries towards the industrialized countries.
Journal: Applied Economics
Pages: 1387-1401
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000029
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1387-1401
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Denny
Author-X-Name-First: Kevin
Author-X-Name-Last: Denny
Title: Productivity and trade unions in British manufacturing industry 1973-85
Abstract:
This paper uses panel data on british manufacturing industries between
1973 and 1985 to examine the relationship between productivity and labour
organization. It is shown that the relationship between unions and
productivity levels is sensitive to the econometric specification. The
evidence points to there being no relationship in the 1970s when unions
were more popular and a negative relationship from 1979 onwards. We also
find evidence that industrial concentration is associated with higher
levels of productivity and this accounts for more of the productivity
recovery after the recession in the early 1980s than the impact of trade
unions. The recession itself is shown to have had an impact on subsequent
productivity growth. We also suggest that the long run gains in
productivity caused by the shakeout of 1980-81 may not have compensated
for the loss in output at the time.
Journal: Applied Economics
Pages: 1403-1409
Issue: 10
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000030
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000030
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Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1403-1409
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoming Li
Author-X-Name-First: Xiaoming
Author-X-Name-Last: Li
Title: Consumption demand, saving behaviour and rational expectations: an application of disequilibrium modelling to China 1952-92
Abstract:
In explaining dramatic changes in Chinese household savings and money
demand behaviour in the reform period, previous studies proposed and
tested three different hypotheses. However, no effort has been made to
distinguish quantitatively between forced and voluntary savings in terms
of their quanta, reasons and effects; the role of rational expectations in
determining household behaviour has not received proper attention; and a
puzzle of high domestic savings ratio accompanied by low interest rates
still remains to be solved. This paper adopts a disequilibrium framework
capable of investigating these issues. Our research yields some
interesting and important results. Its findings support the conjecture
that both regime shifts and repressed inflation have contributed to the
rapidly rising personal money balances during the reform period, with the
former being a dominant factor. It is shown that household voluntary
savings can be well explained by official interest rates; only forced
savings and instantaneous excess demand matter in affecting market prices,
and thus monetary overhang is not so unsettling as some economists would
think; and expectations do play a certain role in influencing household
savings behaviour.
Journal: Applied Economics
Pages: 1411-1424
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326246
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326246
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1411-1424
Template-Type: ReDIF-Article 1.0
Author-Name: David Parkin
Author-X-Name-First: David
Author-X-Name-Last: Parkin
Author-Name: Bruce Hollingsworth
Author-X-Name-First: Bruce
Author-X-Name-Last: Hollingsworth
Title: Measuring production efficiency of acute hospitals in Scotland, 1991-94: validity issues in data envelopment analysis
Abstract:
Data Envelopment Analysis is a potentially useful technique for measuring
production efficiency and is being increasingly applied to health care
services, as with other areas. However, some fundamental concerns need to
be addressed before Data Envelopment Analysis can be accepted widely as a
routine tool. These include issues of validity and specification error.
This paper suggests a broad framework for assessing validity, which should
be developed further, and gives illustrative examples of the problems in a
real application within health care. Data from 75 Scottish acute hospitals
for three years from 1991-94 are analysed. Internal validity is assessed
by examining the effect on the results obtained of the choice of inputs
and outputs selected for analysis. External validity is assessed by
examining differences in the results obtained from the data for each of
the three years. In both cases, it is concluded that there is a disturbing
lack of concordance between the different results obtained. Caution must
therefore be exercised in using Data EnvelopmentAnalysis in the health
sector and in looking at its results, particularly those from a single
time period.
Journal: Applied Economics
Pages: 1425-1433
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326255
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326255
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1425-1433
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Viard
Author-X-Name-First: Alan
Author-X-Name-Last: Viard
Title: How forecastable is consumption growth? New evidence on the Hall random walk hypothesis
Abstract:
I provide new evidence on the accuracy of the Hall random walk hypothesis
that consumption growth is not predictable. Using 1971-94 US data, I find
that consumption growth is substantially more predictable than previously
believed. A regression of consumption growth on lagged nominal interest
rate changes, lagged consumption growth and forecasts by Data Resources,
Inc. yields an adjusted R-squared of 0.32. The empirical tests further
suggest that excess sensitivity of consumption to current disposable
income, rather than time-varying real interest rates or non-separable
utility, is the most likely explanation for the predictability of
consumption growth.
Journal: Applied Economics
Pages: 1435-1446
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326264
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326264
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1435-1446
Template-Type: ReDIF-Article 1.0
Author-Name: Ken Holden
Author-X-Name-First: Ken
Author-X-Name-Last: Holden
Author-Name: John Thompson
Author-X-Name-First: John
Author-X-Name-Last: Thompson
Title: Combining forecasts, encompassing and the properties of UK macroeconomic forecasts
Abstract:
The idea of combining forecasts is of great interest to forecasters and a
linear combination of different forecasts can be more accurate than any
individual forecast. For model builders, forecast encompassing is a way of
checking whether any extra important information is contained in forecasts
from rival models. Efficient forecasts have errors which are unrelated to
any information available when they are formed. Combinations of forecasts,
forecast encompassing and efficiency tests can all be achieved by a
restricted or unrestricted regression of outcomes on the separate
forecasts. This paper links these three approaches and examines the
implications for recent UK annual forecasts.
Journal: Applied Economics
Pages: 1447-1458
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326273
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326273
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1447-1458
Template-Type: ReDIF-Article 1.0
Author-Name: Joao Ricardo Faria
Author-X-Name-First: Joao Ricardo
Author-X-Name-Last: Faria
Author-Name: Francisco. Carneiro
Author-X-Name-First: Francisco.
Author-X-Name-Last: Carneiro
Title: The indexation of wages and bonds in Brazil
Abstract:
This paper analyses the dynamic relationship between the degrees of
indexation of wages and public bonds in Brazil. A simple model is
constructed to show that both degrees of indexation are determined
simultaneously. We apply cointegration techniques and estimate
error-correction representations to assess the temporal causality between
them. Our results provide empirical support for the existence of
simultaneity in the degrees of indexation in Brazil in the period 1980-93.
Journal: Applied Economics
Pages: 1459-1464
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326282
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326282
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1459-1464
Template-Type: ReDIF-Article 1.0
Author-Name: Charlie Weir
Author-X-Name-First: Charlie
Author-X-Name-Last: Weir
Title: Corporate governance, performance and take-overs: an empirical analysis of UK mergers
Abstract:
This paper analyses the relationship between the probability of being
acquired, firm performance and governance structures. The acquired firms
were all fully quoted on the London Stock Exchange and the acquisitions
took place between 1990 and 1993. They were matched by a sample of
non-acquired quoted companies. The sample was also analysed in terms of
hostile and non-hostile acquisitions. It was found that the key governance
characteristics which differentiated between acquired and nonacquired
corporations related to the proportion of non-executive directors on the
board and to whether or not the roles of chief executive officer and
chairman were combined. It was also found that acquired firms were poor
performers, which suggests that the internal governance structures had
been ineffective. These results applied to hostile and non-hostile
targets. The findings support the view that hostile acquisitions are
disciplinary but cast doubt on the claim that non-hostile acquisitions are
purely synergistic. The results also support the view that certain
governance characteristics are effective substitutes for the take-over
mechanism as a means of minimizing discretionary behaviour.
Journal: Applied Economics
Pages: 1465-1475
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326291
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1465-1475
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Title: Sectoral shocks and business cycles: a disaggregated analysis of output fluctuations in the UK
Abstract:
In this paper we first show that it is possible to modify linear real
business cycle models to allow for disaggregate (industry-specific)
factors in the generation of macroeconomic fluctuations. We then try to
determine the relative importance of aggregate and sectoral shocks by
doing principal components analysis on the residuals from a VAR of output
growth rates in 19 UK industrial sectors. We find that a significant
percentage of the innovations in sectoral output growths can be accounted
for by a single unobserved component. However, since the model only sets
an upper bound to the explanatory power of aggregate impulses, the
importance of using sectoral data to extract additional information to
bear on the analysis of economic fluctuations is confirmed by our
findings.
Journal: Applied Economics
Pages: 1477-1482
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326309
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326309
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1477-1482
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Casler
Author-X-Name-First: Stephen
Author-X-Name-Last: Casler
Title: Applied production theory: explicit, flexible, and general functional forms
Abstract:
The problem of estimating elasticity values is considered using a general
functional from for the growth rate of input demand. The general input
growth equation holds for all functional forms, both flexible and
inflexible; it is linear-in-parameters and easy to use in applied
production studies. An empirical application compares the theoretical,
computational, and predictive characteristics of the translog and general
functional forms.
Journal: Applied Economics
Pages: 1483-1492
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326318
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326318
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1483-1492
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Papahristodoulou
Author-X-Name-First: Christos
Author-X-Name-Last: Papahristodoulou
Title: A DEA model to evaluate car efficiency
Abstract:
This paper evaluates the efficiency of personal cars by using the
non-parametric data envelopment analysis (DEA) approach. Analysis and
comparison is performed in a normative manner since all the economic and
technical parameters used (four and ten respectively) are not explicitly
weighted. The data set covers 121 different car models in 1997, as
appeared in the German Auto Motor und Sport magazine.
Journal: Applied Economics
Pages: 1493-1508
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326327
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326327
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1493-1508
Template-Type: ReDIF-Article 1.0
Author-Name: Moosa Khan
Author-X-Name-First: Moosa
Author-X-Name-Last: Khan
Author-Name: Matiur Rahman
Author-X-Name-First: Matiur
Author-X-Name-Last: Rahman
Author-Name: Anisul Islam
Author-X-Name-First: Anisul
Author-X-Name-Last: Islam
Title: Tariff cuts and US net potential benefits: the case of the US and Mexico
Abstract:
This paper seeks to investigate US net potential benefits of merchandise
imports from Mexico under tariff reductions. It applies a partial
equilibrium framework which is static and highly aggregative in nature.
The results suggest that the magnitudes of US net potential benefits of
tariff cuts on merchandise imports from Mexico are conditional upon
periods of duration of unemployment, discount rates, price elasticities of
supply and demand, and existing tariff situations (high or low). Hence,
the findings of the paper suggest that the US potential benefits and costs
of merchandise imports from Mexico under tariff cuts should be weighed
quite carefully.
Journal: Applied Economics
Pages: 1509-1514
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326336
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326336
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1509-1514
Template-Type: ReDIF-Article 1.0
Author-Name: D. M. Nachane
Author-X-Name-First: D. M.
Author-X-Name-Last: Nachane
Title: Purchasing power parity: an analysis based on the evolutionary spectrum
Abstract:
The bulk of the literature on the empirical validation of the purchasing
power parity (PPP) has been based on cointegration, although on rare
occasions band-spectrum analysis has also been used. The former is tied
down to the use of 'notional' time in the analysis of systems away from
equilibrium, and the latter is circumscribed by the Slutzky-Yule effect.
Both these drawbacks are sought to be remedied in the present paper, which
seeks to bring to bear upon the PPP a new approach derived from the
concept of a time-varying spectrum. Both absolute and relative versions of
the doctrine are tested for ten advanced economies over the post-1973
period. Uniform rejection of the PPP occurs with the US $ as base, but
with centring on the DM, the evidence seems to be supportive of the PPP
(in its relative version) for three European countries.
Journal: Applied Economics
Pages: 1515-1524
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326345
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326345
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1515-1524
Template-Type: ReDIF-Article 1.0
Author-Name: Vei-Lin Chan
Author-X-Name-First: Vei-Lin
Author-X-Name-Last: Chan
Author-Name: Sheng-Cheng Hu
Author-X-Name-First: Sheng-Cheng
Author-X-Name-Last: Hu
Title: Financial liberalization and aggregate consumption: the evidence from Taiwan
Abstract:
This paper considers the effect of financial liberalization on aggregate
consumption, with a special focus on Taiwan, which has sustained a high
savings rate and a rapid rate of economic growth under financial dualism,
but has undertaken financial liberalization since the 1980s, leading to an
expansion of the formal financial sector. The paper finds that, because of
an active informal financial sector, consumers in Taiwan are less credit
constrained than in other developing countries. However, the expansion of
the formal financial sector has contributed to some relaxation of consumer
credit constraints and thereby changes in the income and interest
elasticities of consumption. It also has brought about a higher
consumption growth rate, offsetting at least partially the positive growth
effect of financial liberalization, which helps improve the efficiency in
finanacial intermediation.
Journal: Applied Economics
Pages: 1525-1535
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326354
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1525-1535
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Cocco
Author-X-Name-First: Angelo
Author-X-Name-Last: Cocco
Author-Name: J. C. H. Jones
Author-X-Name-First: J. C. H.
Author-X-Name-Last: Jones
Title: On going south: the economics of survival and relocation of small market NHL franchises in Canada
Abstract:
This paper considers the issue of team viability and professional
franchise relocation, a problem common to all major sports leagues in
North America. Specifically, using the National Hockey League in the 1990s
as the analytical vehicle, the proposition that the viability of Canadian
Small Market Franchises (SMF) is in doubt because of a combination of
inadequate revenue (due to the quality of their locations) and escalating
salary cost, is examined. Using game by game data for the 1989/90 season,
revenue, costs and profits by team were estimated and it was concluded
that Canadian SMF are indeed an endangered species. Several alternatives
which might rectify the problem are considered (revenue sharing, salary
caps, public subsidy), but none are as attractive or as realistic as
relocating south to US cities. The behaviour of SMF in the 1990s is
consistent with this prognosis.
Journal: Applied Economics
Pages: 1537-1552
Issue: 11
Volume: 29
Year: 1997
X-DOI: 10.1080/000368497326363
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326363
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Handle: RePEc:taf:applec:v:29:y:1997:i:11:p:1537-1552
Template-Type: ReDIF-Article 1.0
Author-Name: William Luksetich
Author-X-Name-First: William
Author-X-Name-Last: Luksetich
Author-Name: Mark Partridge
Author-X-Name-First: Mark
Author-X-Name-Last: Partridge
Title: Demand functions for museum services
Abstract:
Museums Worldwide are facing financial exigencies and are being forced to
rely on earned income, including admission fees, to finance their
activities. Using data from the 1989 Museum Surveywe estimate demand
functions for seven types of museums in the United States. Previous
empirial evidence on the effects of admission fees on museum attendance
have either been anecdotal or case study in nature. This study presents
the first general empirical evidence on factors influencing the demand for
museum services. Our results provide evidence that the demand for museum
services is price inelastic and that museum quality has important effects
on museum demand. We also argue that out results indicate that the adverse
effects of admission charges on attendance are small and relatively easy
to alleviate.
Journal: Applied Economics
Pages: 1553-1559
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000031
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000031
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1553-1559
Template-Type: ReDIF-Article 1.0
Author-Name: A. J. Errington
Author-X-Name-First: A. J.
Author-X-Name-Last: Errington
Author-Name: L. Harrison Mayfield
Author-X-Name-First: L. Harrison
Author-X-Name-Last: Mayfield
Author-Name: Y. Khatri
Author-X-Name-First: Y.
Author-X-Name-Last: Khatri
Author-Name: R. Townsend
Author-X-Name-First: R.
Author-X-Name-Last: Townsend
Title: Estimating the price elasticity of demand for family and hired farm labour in England and Wales
Abstract:
The agricultural workforce in the UK has been declining since the middle
of the last century. However, the different types of agricultural labour
have been variously affected, and hence the composition of the
agricultural workforce has been undergoing continuous change. These
changes in the structure of the agricultural workforce have serious
implications not only for the policy makers but also for farm workers and
farm businesses and those that service their needs. The study compares and
explores the own price elasticity of demand for two groups of agricultural
labour - that of family and hired - to enable the effects of agricultural
policy on the structure of the agricultural workforce in both the short
and long run to be estimated. This was done using two different
methodologies - single equation and duality based system models. The
similarities in the resulting elasticities give confidence in the
estimates. These estimates can be used to help forecast the future
structure of the agricultural workforce.
Journal: Applied Economics
Pages: 1561-1574
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000032
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000032
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1561-1574
Template-Type: ReDIF-Article 1.0
Author-Name: Talan Iscan
Author-X-Name-First: Talan
Author-X-Name-Last: Iscan
Title: Devaluations and aggregate output fluctuations: a random coefficient regression model for Mexico
Abstract:
The goal of this paper is to investigate whether nominal devaluations had
real output growth effects in Mexico and, if so, to assess the
significance and duration of such effects. A random coefficient regression
model to evaluate the output growth effects of 1976, 1982 and 1986
devaluations using sectoral data from 1970 to 1991 is specified and
estimated. The results indicate unambiguous short-term contractionary
effects of devaluations on non-agricultural output in Mexico. In addition,
it is found that adjustments to imbalances in the external sector
invariably came from temporary contractions in the aggregate output rather
than significant resource reallocation from the non-tradable sector
towards the tradable sector. Several transmission mechanisms that relate
nominal exchange rate movements to real output fluctuations are also
considered.
Journal: Applied Economics
Pages: 1575-1584
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000033
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000033
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1575-1584
Template-Type: ReDIF-Article 1.0
Author-Name: Wilko Letterie
Author-X-Name-First: Wilko
Author-X-Name-Last: Letterie
Author-Name: Otto Swank
Author-X-Name-First: Otto
Author-X-Name-Last: Swank
Title: Electoral and partisan cycles between US economic performance and presidential popularity: a comment on Stephen E. Haynes
Abstract:
In this paper we discuss a recent paper by Stephen E. Haynes in which he
relates electoral cycles in political support to electoral cycles in
economic variables. Haynes finds that the cycle in support for Republican
presidents is explained by the cycle in economic variables, whereas the
cycle in support for Democratic presidents is not. In our opinion this
shortcoming is due to his specification of the popularity function. Haynes
estimates a popularity function which incorporates the notion that voters
reward the incumbent for favourable outcomes (score hypothesis). Our
popularity function combines the score hypothesis and the notion that
voters cast their ballots for the party that best fits the current
economic situation (issue hypothesis). We show that the electoral cycle in
popularity of both Republican and Democratic presidents is explained very
well by the cycle in economic variables.
Journal: Applied Economics
Pages: 1585-1592
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000034
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000034
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1585-1592
Template-Type: ReDIF-Article 1.0
Author-Name: Atsuyuki Naka
Author-X-Name-First: Atsuyuki
Author-X-Name-Last: Naka
Author-Name: David Tufte
Author-X-Name-First: David
Author-X-Name-Last: Tufte
Title: Examining impulse response functions in cointegrated systems
Abstract:
A system of reduced forms with cointegrated variables may be estimated in
two ways: as a vector autoregression in levels, or as a vector error
correction model. The latter is a restricted version of the former. If
there is cointegration, imposing this restriction will yield more
efficient estimates. However, at short horizons, vector error correction
estimates are known to perform poorly relative to those from a vector
autoregression. We examine how this property affects impulse response
functions. A Monte Carlo experiment, and an example, suggest that impulse
response functions of the two models are similar at short horizons, but
different at long horizons. This suggests that the loss of efficiency from
vector autoregression estimation is not critical at the commonly used
short horizon. Our results complement parallel arguments focusing on
forecast errors made by Clements and Hendry (1995), Hoffman and Rasche
(1996), and Lin and Tsay (1996).
Journal: Applied Economics
Pages: 1593-1603
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000035
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000035
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1593-1603
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Caudill
Author-X-Name-First: Steven
Author-X-Name-Last: Caudill
Author-Name: Daniel Gropper
Author-X-Name-First: Daniel
Author-X-Name-Last: Gropper
Title: A quality-adjusted price index for mainframe computers
Abstract:
Journal: Applied Economics
Pages: 1605-1610
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000036
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000036
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1605-1610
Template-Type: ReDIF-Article 1.0
Author-Name: David Rosenbaum
Author-X-Name-First: David
Author-X-Name-Last: Rosenbaum
Author-Name: Meng-Hua Ye
Author-X-Name-First: Meng-Hua
Author-X-Name-Last: Ye
Title: Price discrimination and economics journals
Abstract:
An analysis of pricing by economics journal publishers shows that most
publishers initially charge libraries and individual subscribers the same
price. Over time, however, almost all eventually engage in price
discrimination. The few publishers that never price-discriminate seem to
be purchasing an explicit non-profit-maximizing pricing strategy. Once
discrimination occurs, library prices rise faster than individual
subscriber prices. These results are consistent with theoretical
predictions.
Journal: Applied Economics
Pages: 1611-1618
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000037
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000037
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1611-1618
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Marotta
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Marotta
Title: Does trade credit redistribution thwart monetary policy? Evidence from Italy
Abstract:
Italy is an ideal candidate for testing the credit view of the
transmission mechanism because of a bank-centred financial structure, a
sizeable trade debt, and an economy titled towards small firms. An
empirical analysis of trade credit and debt on averaged panel data shows
that small firms act as financially constrained and cycle-sensitive,
whereas large ones aim at smoothing sales, adopt an integrated management
of inventories and receivables and have a higher trade debt to purchases
elasticity. On balance, the net trade credit channel does not, as implied
by the credit view, shield small firms from a monetary squeeze.
Journal: Applied Economics
Pages: 1619-1629
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000038
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000038
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1619-1629
Template-Type: ReDIF-Article 1.0
Author-Name: Ron Cronovich
Author-X-Name-First: Ron
Author-X-Name-Last: Cronovich
Author-Name: Rennae Daneshvary
Author-X-Name-First: Rennae
Author-X-Name-Last: Daneshvary
Author-Name: R. Keith Schwer
Author-X-Name-First: R. Keith
Author-X-Name-Last: Schwer
Title: The determinants of coupon usage
Abstract:
This paper uses a large sample of survey data to investigate the
empirical determinants of coupon usage. The broad set of control variables
allows for comparisons of the relative importance of individual
determinants and groups of determinants. We find that the set of variables
measuring consumer shopping habits and attitudes explains more of the
variation in coupon usage across households than the group of
socioeconomic and demographic variables. However, the latter variables are
jointly significant, and their estimated coefficients have the expected
signs.
Journal: Applied Economics
Pages: 1631-1641
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000039
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1631-1641
Template-Type: ReDIF-Article 1.0
Author-Name: X. M. Gao
Author-X-Name-First: X. M.
Author-X-Name-Last: Gao
Author-Name: Timothy Richards
Author-X-Name-First: Timothy
Author-X-Name-Last: Richards
Author-Name: Albert Kagan
Author-X-Name-First: Albert
Author-X-Name-Last: Kagan
Title: A latent variable model of consumer taste determination and taste change for complex carbohydrates
Abstract:
Despite evidence that aggregate consumption of complex carbohydrates has
risen over the last decade, food consumption surveys suggest that fewer
households are consuming less bread, pasta rice, potatoes and corn. This
paper estimates systems of complex carbohydrae demand using
cross-sectional data from 1977-78 and 1987-88 in order to explain this
paradox. Changes in demand that are not explained by changes in prices or
income are explained by variations in taste. Because tastes cannot be
directly observed, the paper uses a multiple indicator and multiple cause
(MIMIC) model to construct a suitable proxy variable. In the MIMIC
approach, the 'indicators' are residuals from a household demand function
that includes prices and incomes as explanatory variables, while household
and demograhic proxies are 'cause' variables. The objectives in applying
the MIMIC model are to determine the effect of consumer tastes on complex
carbohydrate demand and, comparing cross-sectional survey data from two
different periods, test the hypothesis that these tastes change over time.
The data consist of US complex carbohydrate prices and expenditures, taken
from the USDA Household Food Consumption Surveys in 1977-78 and 1987-88.
The results show that structural changes in demand, or those that are not
explained by changes in price, income, or the cause variables, led to an
increase in complex carbohydrate demand of 5% from 1977-78 to 1987-88.
However, changes in demand explained by the cause variables cause demand
to fall by 9%.
Journal: Applied Economics
Pages: 1643-1654
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000040
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000040
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1643-1654
Template-Type: ReDIF-Article 1.0
Author-Name: David Blake
Author-X-Name-First: David
Author-X-Name-Last: Blake
Author-Name: Angelika Nied
Author-X-Name-First: Angelika
Author-X-Name-Last: Nied
Title: The demand for alcohol in the United Kingdom
Abstract:
Using the AIDS model, we show that there exists for the UK a stable
long-run relationship between expenditure shares on beer, cider, spirits
and wine, alcohol prices, total alcohol expenditure and a range of
non-economic variables relating to advertising, licensing, the employment,
social class and demographic characteristics of consumers, and climate.
Our estimates of key price and income elasticities generally lie between
those found from other time-series studies (which exclude most of these
non-economic variables) and those found from cross-section studies (which
generally include them). However, the restrictions required for
separability, homegeneity and symmetry (although not those for perfect
price aggregation) are decisively rejected.
Journal: Applied Economics
Pages: 1655-1672
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000041
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000041
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1655-1672
Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Kaskarelis
Author-X-Name-First: Ioannis
Author-X-Name-Last: Kaskarelis
Title: Aggregate returns to scale in Greek manufacturing
Abstract:
This paper takes an imperfect competition model of the economy in order
to investigate for retuns to scale in Greek manufacturing and examines,
through a small-scale macroeconomic model, the implication of estimates.
For this purpose a price, wage and demand for output equations are
estimated, using annual data for the period 1954-94. Prices come through
the profits maximization process and depend on wage, capital rental,
demand and a number of other variables denoing technology and market
competition. Results are clearly in favour of increasing returns to scale
hypothesis, although alternative explanations for the negative demand
effect on prices cannot be excluded.
Journal: Applied Economics
Pages: 1673-1678
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000042
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1673-1678
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaming Liu
Author-X-Name-First: Xiaming
Author-X-Name-Last: Liu
Author-Name: Haiyan Song
Author-X-Name-First: Haiyan
Author-X-Name-Last: Song
Author-Name: Peter Romilly
Author-X-Name-First: Peter
Author-X-Name-Last: Romilly
Title: An empirical investigation of the causal relationship between openness and economic growth in China
Abstract:
This study investigates the causal relationship between openness and
economic growth in China. The integration and cointegration properties of
the data are analysed and the models of Granger, Sims, Geweke and Hsiao
are used to identify a bi-directional causal relationship between GNP and
exports plus imports. This bi-directional causation is consistent with
China's development strategy of protected export promotion
Journal: Applied Economics
Pages: 1679-1686
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000043
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000043
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1679-1686
Template-Type: ReDIF-Article 1.0
Author-Name: Osman Suliman
Author-X-Name-First: Osman
Author-X-Name-Last: Suliman
Title: Innovation and weak labour disposability: some theoretical and empirical evidence
Abstract:
This paper envisages theoretically and empirically the weak labour
disposability and the ability of labour to innovate in a poor-capital,
surplus-labour economy. Therefore, a production function where the
marginal product can become zero or even negative has been derived and
estimated using data from Suden over the period 1968-88, with quarterly
interpolation. Thus, unlike neoclassical specifications of endogenous
growth theory, labour withdrawal may have minimal effect on output. The
results indicate the presence of weak disposability of labour. The
existence of a discernibly low capital-saving technical relationship
between labour and capital has been verified using cointegration
techniques.
Journal: Applied Economics
Pages: 1687-1693
Issue: 12
Volume: 29
Year: 1997
X-DOI: 10.1080/00036849700000044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000044
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Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1687-1693
Template-Type: ReDIF-Article 1.0
Author-Name: Ruben Cohen
Author-X-Name-First: Ruben
Author-X-Name-Last: Cohen
Title: An analysis of the dynamic behaviour of earnings distributions
Abstract:
An analysis of the dynamic behaviour of earnings distributions is
conducted here in three ways. First, the method of dimensional analysis,
in the context of Buckingham's Pi theorem, is employed to demonstrate that
earnings distributions, which are almost always dynamic in character,
should, under certain conditions and a special coordinate transformation,
be self-similar and time-invariant. Application of the theorem to some
empirical data, pertaining to Canadian income, fully confirms this
finding. Second, an economics-based model, incorporating the concept of a
shock-free economy in competitive equilibrium, is developed to provide an
intuitive account of the conclusions reached above. Testing the model's
predictions against data once again yields satisfactory agreement between
the two. The model is finally extended to account for labour-force
mobility across income brackets. The outcome of this, when compared with
empirical data, could reflect the degree of homogeneity, and even
discrimination, in a labour force.
Journal: Applied Economics
Pages: 1-17
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326092
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326092
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:1-17
Template-Type: ReDIF-Article 1.0
Author-Name: Michelle Baddeley
Author-X-Name-First: Michelle
Author-X-Name-Last: Baddeley
Author-Name: Ron Martin
Author-X-Name-First: Ron
Author-X-Name-Last: Martin
Author-Name: Peter Tyler
Author-X-Name-First: Peter
Author-X-Name-Last: Tyler
Title: Transitory shock or structural shift? The impact of the early 1980s recession on British regional unemployment
Abstract:
This paper examines the impact of the early 1980s recession on regional
unemployment in Britain. More specifically, it seeks to evaluate the
hypothesis that this recessionary shock was so severe that it caused an
upward structural shift in the underlying mean unemployment rates of the
regions. This proposition is analysed using Dickey — Fuller tests
for difference versus trend stationarity, and the augmented structural
shift and trend break time-series models developed by Perron. The results
suggest that the apparent stochastic non-stationarity in regional
unemployment over the period 1965 - 95 is in fact due to an upward
structural shift in regional mean unemployment rates in 1980. Furthermore,
the nature of this shift appears to have differed as between the northern
and southern regions of the country.
Journal: Applied Economics
Pages: 19-30
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326100
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326100
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:19-30
Template-Type: ReDIF-Article 1.0
Author-Name: J. H. L. Dewhurst
Author-X-Name-First: J. H. L.
Author-X-Name-Last: Dewhurst
Title: Convergence and divergence in regional household incomes per head in the United Kingdom, 1984-93
Abstract:
This paper examines the σ-convergence of regional household incomes
in the UK and finds support for the idea that regions in the UK have, in
the recent past, tended to diverge during booms and converge during
slumps. A new way of presenting the change in the distribution of regional
incomes is offered. The results are extended to the consideration of
movements in the higher moments of the underlying distributions.
Journal: Applied Economics
Pages: 31-35
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326119
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326119
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:31-35
Template-Type: ReDIF-Article 1.0
Author-Name: Ram Acharya
Author-X-Name-First: Ram
Author-X-Name-Last: Acharya
Author-Name: Robert Ekelund
Author-X-Name-First: Robert
Author-X-Name-Last: Ekelund
Title: Mixed and pure sharecropping in Nepal: empirical evidence supporting the traditional hypothesis
Abstract:
We analyse differences in input and output intensities across three
comparative tenure regimes in Nepal, using two test methods: an F-test
based on Hotelling's T2 statistic, and a test which adapts Shaban's (1987)
methodology to include plot size and crop type. Our results reveal
statistically significant differences in the three alternative systems of
property rights assignments, which have implications for economic theory
and policy relating to tenure systems.
Journal: Applied Economics
Pages: 37-50
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326128
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326128
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:37-50
Template-Type: ReDIF-Article 1.0
Author-Name: Tilak Abeysinghe
Author-X-Name-First: Tilak
Author-X-Name-Last: Abeysinghe
Author-Name: Tan Lin Yeok
Author-X-Name-First: Tan Lin
Author-X-Name-Last: Yeok
Title: Exchange rate appreciation and export competitiveness. The case of Singapore
Abstract:
Policy prescriptions have generally assumed that exchange rate
depreciation would stimulate exports and curtail imports, while exchange
rate appreciation would be detrimental to exports and encourage imports.
This prediction has, however, often neglected to consider the existence of
the import content of exports, as well as the dynamic effects of
productivity improvements. Our paper seeks to show empirically, the
significance of these two factors in affecting the competitiveness of
Singapore's exports. Specifically, the paper shows that in the presence of
high import content, exports are not adversely affected by currency
appreciation because the lower import prices due to appreciation reduce
the cost of export production. In the case of Singapore, this cushioning
effect outweighs that of the effect of productivity gains on export
competitiveness. The service exports, however, with a very low import
content tend to suffer from currency appreciation.
Journal: Applied Economics
Pages: 51-55
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326137
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326137
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:51-55
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Sumner
Author-X-Name-First: Michael
Author-X-Name-Last: Sumner
Title: Permanent and transitory effects of fiscal policy on investment in the UK
Abstract:
A major change in the British corporate tax system had only a weak effect
on the level of manufacturing investment, but caused a large and highly
significant reduction in its seasonal variance. The explanation of this
change sheds new light on the impact of pre-announced tax changes.
Journal: Applied Economics
Pages: 57-62
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326146
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:57-62
Template-Type: ReDIF-Article 1.0
Author-Name: Basil Dalamagas
Author-X-Name-First: Basil
Author-X-Name-Last: Dalamagas
Title: Endogenous growth and the dynamic Laffer curve
Abstract:
Advocates of supply-side economics contend that at least some of the
economies are on the negatively sloped portion of the well-publicized
Laffer curve, so that a lowering of tax rates will increase tax revenue
and, thereby, reduce fiscal deficits in the long run. The purpose of this
paper is to provide a simple but fundamentally correct framework —
in the context of a convex model of endogenous growth — within
which this contention may be analysed. The central finding is that, in the
Group of Seven (G7), the issue of the response of deficits to tax rate
changes cannot be resolved unless the crowding-out and crowding-in aspects
of government intervention are taken into account.
Journal: Applied Economics
Pages: 63-75
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326155
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326155
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:63-75
Template-Type: ReDIF-Article 1.0
Author-Name: Harald Gruber
Author-X-Name-First: Harald
Author-X-Name-Last: Gruber
Title: The diffusion of innovations in protected industries: the textile industry
Abstract:
The diffusion of the shuttleless loom, a major innovation in the textile
industry, has been relatively slow in spite of the undisputed improvement
with respect to the conventional shuttle loom used for weaving textiles.
The diffusion of shuttleless looms in industrialized countries is analysed
in the framework of an epidemic diffusion model where the diffusion speed
parameter is allowed to vary. Of the various factors affecting the speed
of diffusion, trade liberalization seems to have the most potent impact in
accelerating diffusion. This finding is consistent with the idea that
trade liberalization is conducive to speeding up the diffusion of
innovations.
Journal: Applied Economics
Pages: 77-83
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326164
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326164
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:77-83
Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton
Author-X-Name-First: James
Author-X-Name-Last: Thornton
Title: The labour supply behaviour of self-employed solo practice physicians
Abstract:
This paper investigates the empirical labour supply behaviour of
self-employed solo practice physicians. The specification of the empirical
labour supply equation is based on a model of constrained
utility-maximizing behaviour that recognizes the physician makes
work/leisure choices based on an endogenous shadow wage and faces a
nonlinear budget constraint. The findings suggest that the typical
self-employed solo practice male physician operates on the upward-sloping
portion of the labour supply curve and is relatively unresponsive to
changes in marginal hourly medical practice earnings and non-practice
income.
Journal: Applied Economics
Pages: 85-94
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326173
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:85-94
Template-Type: ReDIF-Article 1.0
Author-Name: Cherian Samuel
Author-X-Name-First: Cherian
Author-X-Name-Last: Samuel
Title: The investment decision: a re-examination of competing theories using panel data
Abstract:
A re-examination of the competing theories of investment using panel data
for US manufacturing firms finds that the time-series regressions rank the
neoclassical model as the best and the cross-section and fixed effects
regressions give the number 1 spot to the cash flow model. If the results
from cross-section regressions are viewed as representing the long-run
equilibrium, the single-most important determinant of capital expenditures
appears to be cash flows. These results are consistent with earlier
findings in the literature, support the need for an eclectic approach to
the study of capital expenditure decisions at the firm level, and
vindicate the choice of the firm as the basic unit of analysis in the
study.
Journal: Applied Economics
Pages: 95-104
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326182
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326182
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:95-104
Template-Type: ReDIF-Article 1.0
Author-Name: Martha Field
Author-X-Name-First: Martha
Author-X-Name-Last: Field
Author-Name: Emilio Pagoulatos
Author-X-Name-First: Emilio
Author-X-Name-Last: Pagoulatos
Title: Foreign trade elasticities and import discipline
Abstract:
This paper provides new evidence on the 'trade-as-discipline7rsquo;
hypothesis by considering the determination of price - cost margins with a
panel of 41 four-digit US food manufacturing industries from 1972 to 1987.
Following the empirical specification suggested by competitive fringe
oligopoly models, we include estimated domestic demand elasticities and
cross-price elasticities of import demand as explanatory variables, and
the empirical results confirm the importance of these variables in
assessing the hypothesis.
Journal: Applied Economics
Pages: 105-111
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326191
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326191
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:105-111
Template-Type: ReDIF-Article 1.0
Author-Name: Jeung-Lak Lee
Author-X-Name-First: Jeung-Lak
Author-X-Name-Last: Lee
Author-Name: Carolyn Clark
Author-X-Name-First: Carolyn
Author-X-Name-Last: Clark
Author-Name: Sung Ahn
Author-X-Name-First: Sung
Author-X-Name-Last: Ahn
Title: Long- and short-run Fisher effects: new tests and new results
Abstract:
We find Fisher effects, both long- and short-run, in our full sample
period and in the lengthy first sub-period, using Mishkin's monthly data
for Treasury bill yields and the corresponding inflation rate. Recently
developed cointegration techniques (Ahn and Reinsel, 1990; Reinsel and
Ahn, 1992) are used to detect a long-run Fisher effect. The short-run
effect is analysed within a cointegration framework, using a Granger
causality test that we developed. In the two more recent, but
comparatively short sub-periods since October 1979, our results indicate
the Fisher effect is not present in either long- or short-run form. These
methodologies and results differ from the conclusions of Mishkin's (1992)
recent study.
Journal: Applied Economics
Pages: 113-124
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326209
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326209
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:113-124
Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta
Author-X-Name-First: Jati
Author-X-Name-Last: Sengupta
Title: The efficiency distribution in a production cost model
Abstract:
Methods of estimating efficiency by cost frontiers are analysed here by
generalizing the efficiency distribution approach in Farrell's convex hull
method of cost minimization.
Journal: Applied Economics
Pages: 125-132
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326218
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326218
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:125-132
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Hanousek
Author-X-Name-First: Jan
Author-X-Name-Last: Hanousek
Author-Name: Eugene Kroch
Author-X-Name-First: Eugene
Author-X-Name-Last: Kroch
Title: The two waves of voucher privatization in the Czech Republic: a model of learning in sequential bidding
Abstract:
This study develops a dynamic model of bidding behaviour to investigate
the Czech voucher privatization process, which took place in two waves of
bidding rounds, the first in 1992 and the second in 1994. It examines the
voucher mechanism from the standpoint of investors and the pricing and
allocation of shares. Investors could participate as independent
individuals or by assigning some of all of their voucher points to
investment privatization funds. Principal findings are that individual
participants behaved differently from funds and benefited by learning from
one round to the next and from observing the behaviour of the funds. An
important collateral finding is that the market, though crude, behaved
efficiently in the adjustment of share prices over the bidding rounds.
Journal: Applied Economics
Pages: 133-143
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326227
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326227
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:133-143
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Abbott
Author-X-Name-First: Andrew
Author-X-Name-Last: Abbott
Author-Name: Kevin Lawler
Author-X-Name-First: Kevin
Author-X-Name-Last: Lawler
Author-Name: Marcus Ling
Author-X-Name-First: Marcus
Author-X-Name-Last: Ling
Title: An empirical analysis of the effects of the Monopolies and Mergers Commission Beer Orders (1989) on the UK brewing industry
Abstract:
The aim of this paper is to analyse the structural changes in the UK
brewing industry, resulting from the Monopolies and Mergers Commission's
(MMC) Beer Orders, 1989. Our discussion is supported by an empirical
analysis of the effects of these recommendations on the demand for beer in
the UK. The empirical results indicate no significant change in the
national market following the recent government interventation.
Journal: Applied Economics
Pages: 145-149
Issue: 1
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498326236
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326236
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Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:145-149
Template-Type: ReDIF-Article 1.0
Author-Name: Loren Tauer
Author-X-Name-First: Loren
Author-X-Name-Last: Tauer
Author-Name: Zdenko Stefanides
Author-X-Name-First: Zdenko
Author-X-Name-Last: Stefanides
Title: Success in maximizing profits and reasons for profit deviation on dairy farms
Abstract:
The weak axiom of profit maximization (WAPM) was used to test
how successful each of 70 individual New York State dairy farms was in
maximizing profits using nine years of data. The netput vectors were
corrected for technological change using nonparametric indices that do not
require the assumption of profit maximization nor any functional form for
the underlying technology. These technology indices are consistent with
the nonparametric assumptions used in the WAPM tests. The average negative
WAPM deviation over the 70 farms was 0.20, indicating that on average
these farms could have selected available netput vectors that would have
increased profits by 20% of total receipts. A tobit regression showed that
the available characteristics on these farms explained very little of the
variability in their abilities to select the best netput vectors. Yet,
increased age and additional education increased the ability to select the
best netput vector.
Journal: Applied Economics
Pages: 151-156
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498325958
File-URL: http://hdl.handle.net/10.1080/000368498325958
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:151-156
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Santarelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Santarelli
Title: Start-up size and post-entry performance: the case of tourism services in Italy
Abstract:
A large and comprehensive longitudinal database is used to
identify the start-up of new firms in the Italian tourist industry and
their subsequent post-entry performance. Analysed in particular is the
link between the survival of hotels, restaurants, and catering firms in
each Italian region and their start-up size. By using logit estimation, it
is found that for eighteen out of twenty regions the relationship has the
expected sign, although only for twelve regions and the country as a whole
did it turn out to be statistically significant.
Journal: Applied Economics
Pages: 157-163
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498325967
File-URL: http://hdl.handle.net/10.1080/000368498325967
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:157-163
Template-Type: ReDIF-Article 1.0
Author-Name: Klass H. W. Knot
Author-X-Name-First: Klass H. W.
Author-X-Name-Last: Knot
Title: The fundamental determinants of interest rate differentials in the ERM
Abstract:
The paper analyses the sources of persistent interest rate
differentials vis-�-vis Germany that have existed in
Belgium, Denmark, France, Ireland, Italy, and the Netherlands. In a target
zone system like the ERM, interest rate differentials mainly reflect
devaluation expectations, which are measured here by raw 1-month
Euromarket interest rate differentials, drift-adjusted 1-month
differentials, and differentials in long-term government bond yields. The
role of a large set of fundamental macroeconomic variables that may have
affected these devaluation expectations is investigated within a vector
autoregressive (VAR) setting, by means of Granger-causality tests,
impulse-response functions and variance decompositions. We find no
evidence that fundamentals are more relevant to drift-adjusted devaluation
risk than for unadjusted interest rate differentials. A significant impact
of inflation, budget deficits, and unemployment becomes evident for almost
all ERM-participants.
Journal: Applied Economics
Pages: 165-176
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498325976
File-URL: http://hdl.handle.net/10.1080/000368498325976
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:165-176
Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jurgen Engelbrecht
Author-X-Name-First: Hans-Jurgen
Author-X-Name-Last: Engelbrecht
Title: Business sector R&D and Australia's manufacturing trade structure
Abstract:
This study explores the link between R&D intensity and trade
performance for Australian manufacturing in 1989--90. Net export, export
and import intensity equations are estimated. Net export equations are
also corrected for trade imbalance, which has been shown significantly to
improve the likelihood of correct predictions of revealed factor
abundances. The importance of testing for appropriate functional forms is
emphasized. R&D data by industry of product field are clearly preferred
over industry of enterprise data. The results reconfirm Australia's
comparative disadvantage in R&D intensive manufacturing and the asymmetry
in the impact of R&D intensity on net export and export intensity, despite
the strong increase in business R&D expenditure and the many policy
initiatives adopted during the 1980s aimed at promoting technological
capability and increasing non-traditional manufactured exports.
Journal: Applied Economics
Pages: 177-187
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498325985
File-URL: http://hdl.handle.net/10.1080/000368498325985
File-Format: text/html
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:177-187
Template-Type: ReDIF-Article 1.0
Author-Name: M. Kabir Hassan
Author-X-Name-First: M.
Author-X-Name-Last: Kabir Hassan
Author-Name: David R. Tufte
Author-X-Name-First: David R.
Author-X-Name-Last: Tufte
Title: Exchange rate volatility and aggregate export growth in Bangladesh
Abstract:
The long and short-run determinants of Bangladeshi export
growth are examined. These are modelled as depending on world trade
volume, Bangladeshi and world export prices, and exchange rate volatility.
Several techniques are used to estimate and test hypotheses about the
cointegration space of these variables. We find that there are two
plausible restricted cointegrating vectors: one appears to be an export
demand while the other is suggestive of an export supply. These are then
imposed on an error correction model. Estimates suggest that in the long
run, Bangladeshi export growth is driven by the volume of world trade, and
is negatively, and inelastically related to the volatility of Bangladeshi
exchange rates. Once these long-run effects are accounted for, it is found
that none of the variables significantly explains any short-run changes in
export growth.
Journal: Applied Economics
Pages: 189-201
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498325994
File-URL: http://hdl.handle.net/10.1080/000368498325994
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:189-201
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Glick
Author-X-Name-First: Peter
Author-X-Name-Last: Glick
Author-Name: David E. Sahn
Author-X-Name-First: David E.
Author-X-Name-Last: Sahn
Title: Health and productivity in a heterogeneous urban labour market
Abstract:
The effects of changes in various health indicators on hourly
earnings in different sectors of the labour market are examined using
survey data from Conakry, Guinea. Greater height, which is associated with
greater strength, raises earnings of men both in self-employment and the
private wage sector, where work is likely to involve physical labour.
Height does not matter for women's earnings, which likely reflects the
less physically strenuous nature of most women's activities. Body mass
index, treated as an endogenous variable, appears to raise earnings of men
in self- and private wage employment and of women in self-employment. No
impacts are found for household per capita calorie and protein
availability, also treated as endogenous. Overall, the results suggest
that health matters for productivity in poor urban environments, with
these effects depending on gender and the sector of employment or type of
work.
Journal: Applied Economics
Pages: 203-216
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326001
File-URL: http://hdl.handle.net/10.1080/000368498326001
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:203-216
Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Estimating the effectiveness and benefits of alcohol treatment programmes for use in economic evaluations
Abstract:
A binary probit model based on random utility theory is
employed to obtain the implicit determinants of alcohol treatment
effectiveness revealed by decisions made by programme evaluators of
behavioural changes by patients. A scale of equivalences for the
behavioural variables is constructed which uses reductions in alcohol
drinking as the unit of account. Because one of the behavioural variables
was the change in income from treatment expressed in dollars, the
trade-offs contained in the scale of equivalences can be translated into
monetary terms using the human capital approach. The method is applied to
a sample of 1689 observations from the National Alcoholism Program
Information System (NAPIS) tapes for 1977-81.
Journal: Applied Economics
Pages: 217-226
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326010
File-URL: http://hdl.handle.net/10.1080/000368498326010
File-Format: text/html
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:217-226
Template-Type: ReDIF-Article 1.0
Author-Name: Irene Henriques
Author-X-Name-First: Irene
Author-X-Name-Last: Henriques
Author-Name: Perry Sadorsky
Author-X-Name-First: Perry
Author-X-Name-Last: Sadorsky
Author-Name: Savita Verma
Author-X-Name-First: Savita
Author-X-Name-Last: Verma
Title: Sectoral fluctuations in Mexico and the 1993 recession
Abstract:
The sectoral fluctuations that occurred during Mexico's 1993
recession are studied. The 1993 recession differed from other recessions
in that it was preceded by a period of low inflation and positive
government surplus. Our empirical analysis suggests that slowdowns in
natural resource intensive sectors were partially responsible for the 1993
recession in Mexico.
Journal: Applied Economics
Pages: 227-234
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326029
File-URL: http://hdl.handle.net/10.1080/000368498326029
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:227-234
Template-Type: ReDIF-Article 1.0
Author-Name: Shon P. Williams
Author-X-Name-First: Shon P.
Author-X-Name-Last: Williams
Author-Name: C. Richard Shumway
Author-X-Name-First: C.
Author-X-Name-Last: Richard Shumway
Title: Aggregation of data and profit maximization in Mexican agriculture
Abstract:
Nonparametric support for two important hypotheses relevant
to econometric model specification is examined. Results of various
nonparametric tests for behavioural objective and aggregation level of
Mexican agricultural production data are reported. The evidence does not
refute the hypothesis that producers behave collectively as though they
are a price-taking, profit-maximizing firm. The empirical results also
support exhaustive aggregation of input categories. Aggregation
possibilities among outputs are fewer and are highly sensitive to the
rejection criterion.
Journal: Applied Economics
Pages: 235-244
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326038
File-URL: http://hdl.handle.net/10.1080/000368498326038
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:235-244
Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Fotopoulos
Author-X-Name-First: Georgios
Author-X-Name-Last: Fotopoulos
Author-Name: Nigel Spence
Author-X-Name-First: Nigel
Author-X-Name-Last: Spence
Title: Entry and exit from manufacturing industries: symmetry, turbulence and simultaneity - some empirical evidence from Greek manufacturing industries, 1982-1988
Abstract:
The interdependence between entry and exit of firms into
manufacturing industries is the focus of this research. When both entry
and exit equations are estimated separately the results support the
existence of strong symmetry in their determinants. When, however, entry
and exit are estimated within a simultaneous equation framework, the
empirical evidence does not offer sufficient grounds to support the notion
that entry and exit are simultaneously linked. Instead it seems that they
are two contemporaneously related processes which respond in like fashion
to the structural characteristics found in particular industries. Their
linked response is also extended to factors unaccounted for by the
individual entry and exit formulations, and this expresses itself in
significant contemporaneous correlation between the entry and exit
equation residuals. The change in the identities of firms operating,
implied by the positive correlation between entry and exit, may then be
attributed to industry turbulent conditions, which in turn appear perhaps
to be conditioned in the shorter run by time-invariant inter-industry
differences in technological factors and sunk costs.
Journal: Applied Economics
Pages: 245-262
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326047
File-URL: http://hdl.handle.net/10.1080/000368498326047
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:245-262
Template-Type: ReDIF-Article 1.0
Author-Name: Patricia L. Chelley-Steeley
Author-X-Name-First: Patricia L.
Author-X-Name-Last: Chelley-Steeley
Author-Name: James M. Steeley
Author-X-Name-First: James M.
Author-X-Name-Last: Steeley
Author-Name: Eric J. Pentecost
Author-X-Name-First: Eric J.
Author-X-Name-Last: Pentecost
Title: Exchange controls and European stock market integration
Abstract:
This paper examines the impact on stock price predictability
that the removal of exchange controls had on major European countries
during the late 1970s and 1980s. It is found that for Germany, Switzerland
and France, the removal of exchange controls led to an increase in the
interdependence between these and other markets. In contrast, there is
little evidence of an increase in interdependence for the UK and Italy.
Journal: Applied Economics
Pages: 263-267
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326056
File-URL: http://hdl.handle.net/10.1080/000368498326056
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:263-267
Template-Type: ReDIF-Article 1.0
Author-Name: Artur C. B. Da Silva Lopes
Author-X-Name-First: Artur C. B.
Author-X-Name-Last: Da Silva Lopes
Title: On the 'restricted cointegration test' as a test of the rational expectations hypothesis*
Abstract:
One of the main consequences of the 'cointegration
revolution' on the domain of the direct tests of the rational expectations
hypothesis (REH) was the substitution of the 'restricted cointegration
test' (RCT) for the 'unbiasedness test'. However, the results of a Monte
Carlo study show that a simple t-test can be much more
powerful than the RCT. It is argued that the RCT is adequate to
investigate the 'asymptotic rationality' but that it is not sufficient to
assess the Muthian rationality of expectations. The discussion is
empirically illustrated with the test of the REH for the Portuguese retail
trade inflation expectations.
Journal: Applied Economics
Pages: 269-278
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326065
File-URL: http://hdl.handle.net/10.1080/000368498326065
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:269-278
Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Kramer
Author-X-Name-First: Jorg
Author-X-Name-Last: Kramer
Title: Determinants of the expected real long-term interest rates in the G7-countries
Abstract:
The paper investigates which factors determine the expected
real long-term interest rates of the G7-countries as a whole within a
single equation error correction model. Inflationary expectations are
generated using the low frequency component of inflation provided by the
Hodrick-Prescott filter. A comparison of the calculated expected inflation
rates with those resulting from index-linked and conventional UK bonds
suggests this approach to be appropriate. Expected real long-term interest
rates turn out to be influenced positively by real short-term interest
rates, capacity utilization and structural public borrowing.
Journal: Applied Economics
Pages: 279-285
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326074
File-URL: http://hdl.handle.net/10.1080/000368498326074
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:279-285
Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Author-Name: A. E. H. Speight
Author-X-Name-First: A. E. H.
Author-X-Name-Last: Speight
Title: The nonlinear time series properties of unemployment rates: some further evidence
Abstract:
The time series properties of unemployment rates for Germany,
Japan, the UK and the US are re-examined. Evidence of nonlinear structure
in the residuals of the most parsimonious linear ARMA models is reported
for all countries except Japan. Modelling this nonlinearity using SETAR
models suggests strong asymmetry in unemployment dynamics and the presence
of a possible limit cycle for the UK. However, residual diagnostics for
these models indicate remaining structure. Alternative TAR models
conditioned on past growth rates of industrial production yield
substantial reductions in residual variance over both linear and SETAR
counterparts, iid residuals in all cases other than the US, and threshold
values at or very near zero, clearly identifying the asymmetric behaviour
of unemployment during expansionary and contractionary phases of the
business cycle.
Journal: Applied Economics
Pages: 287-294
Issue: 2
Volume: 30
Year: 1998
Month: 2
X-DOI: 10.1080/000368498326083
File-URL: http://hdl.handle.net/10.1080/000368498326083
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Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:287-294
Template-Type: ReDIF-Article 1.0
Author-Name: Winston Lin
Author-X-Name-First: Winston
Author-X-Name-Last: Lin
Author-Name: Yueh Chen
Author-X-Name-First: Yueh
Author-X-Name-Last: Chen
Title: Forecasting foreign exchange rates with an intrinsically nonlinear dynamic speed of adjustment model
Abstract:
Forecasting foreign exchange rates is an important but difficult process;
therefore, it is important to use a superior forecasting model. The paper
takes up this criterion and proposes to describe and forecast foreign
exchange rates by developing an intrinsically nonlinear model with
variable and dynamic speeds of adjustment. It is found that the speed of
adjusting the random (or expected) to the equilibrium rate is very slow,
implying that fiscal policy (statistically insignificat) and monetary
policy (statistically significant) may be ineffective to induce changes in
the adjustment speed. We also find that the nonlinear dynamic model
improves forecasting performance, implying that nonlinearities in the
sense of functional forms are exploitable for improved point forecasting
of foreign exchange rates.
Journal: Applied Economics
Pages: 295-312
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325822
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325822
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:295-312
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Robson
Author-X-Name-First: Martin
Author-X-Name-Last: Robson
Title: Self-employment in the UK regions
Abstract:
The significant regional variations which exist in the rate of
self-employment among UK males are highlighted and attempts made to
explain them. Using pooled crosssection time-series data for the period
1973 - 93, it is found that in the long run, regional rates of
self-employmentare a function of the real value of net housing wealth and
the industry composition of regional GDP. However, a significant
proportion of regional variations in self-employment can only be explained
by regional 'fixed effects', which reflect fundamental long-term
influences which make some regions more fertile environments for
self-employment than others.
Journal: Applied Economics
Pages: 313-322
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325831
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325831
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:313-322
Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Author-Name: A. E. H. Speight
Author-X-Name-First: A. E. H.
Author-X-Name-Last: Speight
Title: Threshold nonlinearities in output: some international evidence
Abstract:
The empirical adequacy of linear AR and nonlinear SETAR models of
trend-stationary and difference-stationary representations of output for
Canada, Germany, Japan, the UK and the US are appraised. Test results
suggest the presence of linear model residual structure of some form for
all series, and nonlinearities of specifically threshold form in
trend-stationary data for Canada, Germany, Japan and the US, and
difference-stationary data for Germany, Japan and the US. With the
exception of Canada, estimated threshold nonlinear models imply asymmetric
dynamics, are able to account for all nonlinear structure in the data on
the basis of BDS statistics, and provide sizeable reductions in residual
variance in several cases, most notably for Germany.
Journal: Applied Economics
Pages: 323-333
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325840
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325840
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:323-333
Template-Type: ReDIF-Article 1.0
Author-Name: Stein Ostbye
Author-X-Name-First: Stein
Author-X-Name-Last: Ostbye
Title: Real options, wage bargaining, factor subsidies and employment
Abstract:
The paper combines a translog variable cost function, a bargaining model
of wage determination and a real option model determining real capital.
Using this framework, the effect of factor subsidies on labour demand is
estimated, based on aggregate panel data for Norwegian manufacturing
industry in the period 1980-1988
Journal: Applied Economics
Pages: 335-344
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325859
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325859
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:335-344
Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Nayga
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Nayga
Title: A sample selection model for prepared food expenditures
Abstract:
The factors affecting household expenditures on four types of prepared
food products from a sample selection model estimated using a two-step
method are explored. Results suggest that several variables affect
household expenditures on various prepared food products. Factors examined
are presence of children, number of earners, region, household size,
seasonality, age, race, education, and income.
Journal: Applied Economics
Pages: 345-352
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325868
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325868
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:345-352
Template-Type: ReDIF-Article 1.0
Author-Name: William Stine
Author-X-Name-First: William
Author-X-Name-Last: Stine
Title: Explaining the decision to repeal an optional local tax
Abstract:
County governments in Pennsylvania have had the option to repeal the
intangible property tax since 1978. As of 1992, 27 of Pennsylvania's 66
counties had repealed it. An attempt is made to explain empirically the
probability of repeal in this paper. The empirical model accounts for a
large part of the variation across counties. The results show that the
probability of levying the intangible property tax is positively related
to the projected change in the real estate tax rate. Further, it was found
that revenue diversification and several taste and political variables
significantly influence the repeal decision. These findings are consistent
with those of previous tax adoption studies. The evidence, however, does
not show the exportation of real estate taxes to have the expected effect
on the probability of repeal.
Journal: Applied Economics
Pages: 353-363
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325877
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325877
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:353-363
Template-Type: ReDIF-Article 1.0
Author-Name: J. Stephen Ferris
Author-X-Name-First: J. Stephen
Author-X-Name-Last: Ferris
Title: Real government size, automatic feedback rules and the measured effectiveness of fiscal policy
Abstract:
This paper argues that as intervention, fiscal policy means more than
simply any change in government spending and this requires of fiscal
analysis a measure that separates the allocative from the counter-cyclical
activities of government. Defining intervention as an optimal policy rule
that responds automatically to privately unanticipated variations in
output, a general equilibrium model is built to separate the supply side
effects of desired changes in the size of government from demand side
interventions designed to stimulate aggregate demand. The model is tested
using the results of a public choice investigation of the real size of
government (Ferris and West, 1996). That exercise produces a measure of
desired size and, through its residual, an implicit measure of
intervention. The paper tests the prediction that increases in desired
size increase aggregate supply and that ex post measures of fiscal
intervention can be recovered and tested for their effect on aggregate
output. The test uses CITIBASE US annual data from 1959 through 1989.
Journal: Applied Economics
Pages: 365-373
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325886
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325886
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:365-373
Template-Type: ReDIF-Article 1.0
Author-Name: George Vamvoukas
Author-X-Name-First: George
Author-X-Name-Last: Vamvoukas
Title: The relationship between budget deficits and money demand: evidence from a small economy
Abstract:
A considerable number of empirical studies exploring the links between
budget deficits and the demand for money have led to mixed results. By
using annual data of the Greek economy and previous empirical studies,
this paper empirically evaluates the sensitivity and validity of the
Keynesian proposition and the Ricardian equivalence hypothesis. The paper
employs cointegration, ECM methodology, and several diagnostic and
specification tests. The empirical findings show a significant and
positive relationship between budget deficits and the demand for money,
supporting the Keynesian model.
Journal: Applied Economics
Pages: 375-382
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325895
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:375-382
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Brakman
Author-X-Name-First: Steven
Author-X-Name-Last: Brakman
Author-Name: Elmer Sterken
Author-X-Name-First: Elmer
Author-X-Name-Last: Sterken
Title: A test of Dutch long-run export supply behaviour
Abstract:
The small country assumption affects the modelling of the export demand
and export price equations. A large (monopolistic) country can set its
export price as a mark-up over marginal cost, because it has market power.
In contrast, small countries have to deal with competition which forces
prices down to the price level of foreign competitors; prices are
exogenous. Another possibility is the case in which a small country wants
to preserve market shares in foreign markets, this results in fully
endogenous pricing. This paper tests the small country export hypothesis
for the Dutch economy using a long-run VAR-model. The estimated VAR-model
includes two long-run equilibrium relationships, which can be identified
as an export supply and export demand equation. Restrictions on the
variables are used to test the various hypotheses concerning the long-run
supply relationships.
Journal: Applied Economics
Pages: 383-389
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325903
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325903
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:383-389
Template-Type: ReDIF-Article 1.0
Author-Name: Insang Hwang
Author-X-Name-First: Insang
Author-X-Name-Last: Hwang
Title: Long-run determinant of Korean economic growth: empirical evidence from manufacturing
Abstract:
This paper challenges the recent contrarian view that the phenomenal
growth of East Asian NICs is fuelled mainly by the accumulation of
production inputs not by TFP growth. To appraise this view, we
investigated and re-evaluated South Korean manufacturing growth
(1973(Q1)-1993(Q4)). Using Johansen's cointegrating analysis, our results
show that South Korean manufacturing appears to have increasing returns to
scale in production technology. The 'learning by doing' effect defined by
Lucas (1988) is empirically supported. This effect appears to be observed
as a long-run determinant of South Korean manufacturing growth.
Consequently, South Korean manufacturing growth can be described by an
endogenous economic growth model, such as the Lucas (1988) model,
contradicting the contrarian view.
Journal: Applied Economics
Pages: 391-405
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325912
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325912
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:391-405
Template-Type: ReDIF-Article 1.0
Author-Name: Antonello Scorcu
Author-X-Name-First: Antonello
Author-X-Name-Last: Scorcu
Title: Consumption risk-sharing in Italy
Abstract:
This paper analyses the issue of consumption risk-sharing in the 20
Italian regions during the period 1983-94. The tests proposed allow for
regional specific departures from the hypothesis of complete risk-sharing
and for the existence of non-separabilities among groups of commodities.
Empirical evidence suggests the rejection of the hypothesis of complete
consumption risk-sharing.
Journal: Applied Economics
Pages: 407-414
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325921
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325921
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:407-414
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammed Islam
Author-X-Name-First: Muhammed
Author-X-Name-Last: Islam
Title: Export expansion and economic growth: testing for cointegration and causality
Abstract:
This paper develops a multivariate error-correction model to test the
causality between exports and growth in 15 Asian countries, 1967-91. The
underlying series are tested as non-stationary in levels but stationary in
first differences. The causal factors are cointegrated in five of these
countries only. Causality test results indicate that export expansion
causes growth in two-third of these countries, corrected for simultaneity
between the causal factors. A country with a large public sector, higher
level of economic development, and which is less vulnerable to external
economic shocks is more likely to reap the benefits of export promotion
strategies. The causal inferences are fairly stable over the sample
period.
Journal: Applied Economics
Pages: 415-425
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325930
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325930
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:415-425
Template-Type: ReDIF-Article 1.0
Author-Name: Seyed Mehdian
Author-X-Name-First: Seyed
Author-X-Name-Last: Mehdian
Author-Name: Rasoul Rezvanian
Author-X-Name-First: Rasoul
Author-X-Name-Last: Rezvanian
Title: Production economies of small depository institutions in the post-FIRREA era: evidence from cooperative banks
Abstract:
To evaluate the effects of the Financial Institutions Reform, Recovery
and Enforcement Act (FIRREA) of 1989 on the cost behaviour of thrift
institutions, this study examines the economies of scale and scope of
cooperative banks for the years 1992-94. The findings provide evidence of
economies of scale and scope over the period under study. In addition, the
results suggest the presence of product-specific economies of scale and
scope with respect to a few of the products included in the portfolios of
the samples. Some policy implications are drawn based on the findings.
Journal: Applied Economics
Pages: 427-433
Issue: 3
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325949
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325949
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Handle: RePEc:taf:applec:v:30:y:1998:i:3:p:427-433
Template-Type: ReDIF-Article 1.0
Author-Name: Jaehwan Park
Author-X-Name-First: Jaehwan
Author-X-Name-Last: Park
Author-Name: Ronald Ratti
Author-X-Name-First: Ronald
Author-X-Name-Last: Ratti
Title: Stationary data and the effect of the minimum wage on teenage employment
Abstract:
One of the interesting features of time series work on the effect of the
minimum wage is that the problem of possible spurious regressions when
data may be non-stationary has been largely ignored. It is shown that this
is potentially a serious problem. It is found that although the teenage
employment to population ratio is stationary, the 'independent' variables
in time series regression equations are non-stationary. Substitution of
the stationary first differences of the independent variables in the
regression equations for their levels, is found to greatly undermine the
estimated influence of the minimum wage on the employment-to-population
ratio. Estimates of the effect of the minimum wage are found to be only
marginally more significant when seasonal differencing of the dependent
variable and an ARCH estimation technique are employed.
Journal: Applied Economics
Pages: 435-440
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325705
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325705
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:435-440
Template-Type: ReDIF-Article 1.0
Author-Name: Atanu Saha
Author-X-Name-First: Atanu
Author-X-Name-Last: Saha
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: Refutable implications of the firm model under risk
Abstract:
Curvature properties of the indirect utility function are shown to be
necessary and sufficient for refutable behavioural postulates in the form
of comparative static results, reciprocity relations, and restrictions on
output and input responses for firm models under risk. These postulates
are independent of onerous restrictions on risk preference, technology, or
random variable distribution. As an exposition, the complete set of
refutable implications for a multi-output firm operating under price risk
is derived. At the data means, these implications are not rejected when
they are tested using firm-level data, but both risk neutrality and
constant absolute risk aversion are rejected. At individual observations,
one implication is rejected almost as frequently as risk neutrality and
constant absolute risk aversion.
Journal: Applied Economics
Pages: 441-448
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325714
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325714
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:441-448
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: Richard Froyen
Author-X-Name-First: Richard
Author-X-Name-Last: Froyen
Title: Potential information and target variables for UK monetary policy
Abstract:
The relationship between traditional monetary policy goal variables
(nominal GDP, real GPD and the inflation rate) and a number of financial
market variables is investigated. The question examined is which if any of
these financial market variables (monetary aggregates, interest rates and
interest rate spreads) are potentially useful as either information
variables or intermediate targets. While the implications concerning the
usefulness of the financial variables considered are pessimistic
concerning nominal GDP, more robust relationships are found for real GDP
and inflation. The latter finding is of interest given the current UK
monetary policy strategy of inflation targeting. Our results are, however,
more supportive of the usefulness of several financial variables as
information variables than as intermediate targets.
Journal: Applied Economics
Pages: 449-463
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325723
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325723
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:449-463
Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Nero
Author-X-Name-First: Giovanni
Author-X-Name-Last: Nero
Title: Spatial multiproduct pricing: empirical evidence on intra-European duopoly airline markets
Abstract:
This paper estimates a model of spatial multiproduct duopoly pricing when
the location patterns differ across markets. The theoretical model
suggests that the neighbouring configuration yields less competitive Nash
prices than the interlaced configuration. I apply this model to data for
intra-European duopoly airline markets. The empirical results support the
theoretical model since I find that fares are higher on intra-European
markets that exhibit neighbouring configurations in the time domain. This
result suggests that price competition is reduced when each airline
operates on a specific segment of the timetable (e.g. the first 12 hours
of the day). Clearly, this result has several implications for policy
makers and/or airport authorities in charge of awarding slots.
Journal: Applied Economics
Pages: 465-475
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325732
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325732
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:465-475
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Stewart
Author-X-Name-First: Chris
Author-X-Name-Last: Stewart
Title: Reinterpreting the DHSY (1978) consumption function with hindsight
Abstract:
The justification for Davidson, Hendry, Srba and Yeo's (DHSY's) selection
of their favoured equation is shown to be based upon contradicting
assumptions about inflation. The empirically supported model is argued not
to have a theoretically justified error-correction interpretation. The
exclusion of the intercept biases the error-correction term such that it
becomes significant and negative but undermines the theoretical
plausibility of the long-run target. More generally, the statistical need
to include an intercept in any regression to avoid parameter bias is
demonstrated. The rise in inflation in the 1970s is not considered to be a
credible explanation of the fall in the average propensity to consume
(APC) from the 1950s and is shown to have questionable empirical support
when a below unit income-elasticity is allowed for. The recent articles
which have found support for DHSY's favoured formulation, augmented by
time-varying parameters, using the most contemporary UK data should be
viewed with caution. New interpretations for the DHSY model's persistent
success are called for if it is not to be considered that dubious
regressions have been resurrected.
Journal: Applied Economics
Pages: 477-489
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325741
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325741
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:477-489
Template-Type: ReDIF-Article 1.0
Author-Name: Helen Jensen
Author-X-Name-First: Helen
Author-X-Name-Last: Jensen
Author-Name: Justo Manrique
Author-X-Name-First: Justo
Author-X-Name-Last: Manrique
Title: Demand for food commodities by income groups in Indonesia
Abstract:
An analysis of the structure of demand was performed on household data,
classified into income groups for urban Indonesia. A demographically
augmented linearized almost ideal demand system was used to estimate the
structural parameters of the demand equations. Endogenous switching
regression techniques yielded unbiased and consistent demand parameter
estimates for the low-income group, which had a large number of zeros for
some food groups. Standard seemingly unrelated equation techniques were
used to estimate the demand parameters for the other income groups. The
results showed demands for the medium to high- and high-income households
to be responsive to prices, income and demographic variables. Demands for
the medium to low-income households were responsive to income and prices
only. Demands for low-income households were responsive to income and
prices of rice and fish only.
Journal: Applied Economics
Pages: 491-501
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325750
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:491-501
Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Powell
Author-X-Name-First: Lisa
Author-X-Name-Last: Powell
Title: Part-time versus full-time work and child care costs: evidence for married mothers
Abstract:
This paper contributes to the analysis of female labour supply by
accounting for both child care costs and differences in part-time and
full-time work. An ordered probit model is used to examine the impact of
child care costs on the work status of married mothers. Data are drawn
from the Canadian National Child Care Survey and the Labour Market
Activity Survey. The results from this paper show the degree to which
child care subsidies may have differential impacts on part-time and
full-time work decisions by mothers: the child care cost elasticities for
part-time and full-time employment are reported to be -0.21 and -0.71,
respectively.
Journal: Applied Economics
Pages: 503-511
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325769
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325769
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:503-511
Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Caucutt
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Caucutt
Author-Name: Mrinal Ghosh
Author-X-Name-First: Mrinal
Author-X-Name-Last: Ghosh
Author-Name: Christina Kelton
Author-X-Name-First: Christina
Author-X-Name-Last: Kelton
Title: Robustness of the relationship between price variability and inflation for US manufacturing
Abstract:
We study the relationship between relative price variability and
inflation in two different ways. We first look at product-class census
unit values for five time periods between 1958 and 1982, and find evidence
of a positive relationship between variability and inflation. Then we
directly update the Vining and Elwertowski (1976) study for the period
1974-91, using individual commodity series from the Bureau of Labor
Statistics. We conclude by discussing differences across industries in
price stickiness.
Journal: Applied Economics
Pages: 513-519
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325778
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:513-519
Template-Type: ReDIF-Article 1.0
Author-Name: Adam Ozanne
Author-X-Name-First: Adam
Author-X-Name-Last: Ozanne
Title: Uncertainty, duality and perversity: an empirical test of the Schultz-Baron hypothesis
Abstract:
It has been suggested that supply curves may be negatively sloped under
conditions of output price uncertainty and risk aversion if the effect of
an increase in expected price is offset by the effect of an associated
increase in uncertainty/risk. This hypothesis, first articulated by
Schultz and given a more rigorous theoretical exposition by Baron, is
tested using aggregate time series data to estimate a stochastic model of
US agriculture based on a generalized Leontief certainty equivalent profit
function. Evidence of risk aversion and a positive correlation between
mean output price and its variance are found; however, these factors are
not strong enough to generate perversity. Thus the own-price elasticity of
supply of agricultural output is found to be positive with a value of
0.25. Although no evidence of perversity is found, the empirical results
suggest that ignoring price uncertainty may bias estimates of aggregate
supply response downwards by between 5% and 47%. As well as testing the
Schultz - Baron hypothesis, the paper demonstrates how the dual approach
to applied production analysis can be extended to cover production under
output price uncertainty.
Journal: Applied Economics
Pages: 521-530
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325787
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325787
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:521-530
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer
Author-X-Name-First: Richard
Author-X-Name-Last: Thalheimer
Title: Parimutuel wagering and video gaming: a racetrack portfolio
Abstract:
Parimutuel wagering has been declining for several decades due, in part,
to increased competition from state lotteries and casino gaming. In recent
years, an attempt has been made to integrate video lottery terminal (VLT)
gaming into a parimutuel racetrack's product portfolio. Daily data are
used to develop product demand equations for parimutuel horse-race
wagering and video lottery gaming at a throughbred racetrack. It is found
that introduction of VLTs into the product mix results in decreased
parimutuel wagering and revenues. However, the additional revenue
generated from the VLTs is found to more than offset the decline in
parimutuel revenue and the increased expense associated with the VLTs,
given that a sufficient number of terminals are made available. When
revenue from the combined parimutuel and VLT gaming product increases, if
the respective shares of the VLT revenue distributed to the racetrack, to
the horsemen who race horses at the racetrack and to the government are
the same as their distributive shares from parimutuel wagering, all will
enjoy an increase in revenue. To the extent that the respective shares of
these participants differ from their share of parimutuel wagering, all
participants may or may not enjoy an increase in revenue, depending upon
the magnitude of the revenue increase. An additional finding of importance
is that patrons who attend and wager on horse racing also wager on the VLT
games while patrons who attend for the VLT gaming are less likely to wager
on horse racing.
Journal: Applied Economics
Pages: 531-544
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325796
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325796
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:531-544
Template-Type: ReDIF-Article 1.0
Author-Name: Erdal Ozmen
Author-X-Name-First: Erdal
Author-X-Name-Last: Ozmen
Title: Is currency seigniorage exogenous for inflation tax in Turkey?
Abstract:
This paper discusses the implications of the validity of the conditioning
hypothesis for the maintained money demand equation for an inflation tax
analysis. We also test the validity of the quantity-theoretical inflation
tax model for the post-1980 quarterly Turkish data by using Johansen
cointegration techniques. The results suggest that the tax rate
(inflation) is weakly exogenous for the parameters of the long-run money
demand (tax base) equation. This result, consistent with a Keynesian
endogenous seigniorage-exogenous inflation tax rate theory prior, does not
support the hypothesis that the Turkish inflation can be explained by the
conventional inflation tax revenue-maximizing motive alone.
Journal: Applied Economics
Pages: 545-552
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325804
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325804
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:545-552
Template-Type: ReDIF-Article 1.0
Author-Name: Geoffrey Williams
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Williams
Author-Name: Ashok Parikh
Author-X-Name-First: Ashok
Author-X-Name-Last: Parikh
Author-Name: David Bailey
Author-X-Name-First: David
Author-X-Name-Last: Bailey
Title: Are exchange rates determined by macroeconomic factors?
Abstract:
In this study, we consider 15 countries and examine the relationship
between exchange rate volatility and macroeconomic volatility. We show
that, in general, empirical support for the existence of a link between
exchange rates and macroeconomic fundamentals is very weak and that other
factors are more important in casting light on the behaviour of exchange
rates. In particular, we investigate the links between risk premia and
exchange rates across our sample of countries. Using ARCH and GARCH
techniques, we illustrate that despite the targeting policies of the ERM,
risk premia are evident for the majority of countries in our sample.
Journal: Applied Economics
Pages: 553-567
Issue: 4
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325813
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Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:553-567
Template-Type: ReDIF-Article 1.0
Author-Name: David Karemera
Author-X-Name-First: David
Author-X-Name-Last: Karemera
Author-Name: Vera Harper
Author-X-Name-First: Vera
Author-X-Name-Last: Harper
Author-Name: Victor Iwuagwu Oguledo
Author-X-Name-First: Victor Iwuagwu
Author-X-Name-Last: Oguledo
Title: Random walks and monetary velocity in the G-7 countries: new evidence from a multiple variance ratio test
Abstract:
The random walk hypothesis (RWH) of the velocity of money has often been
supported for the developed economies. The literature is, however, far
from unanimous. This paper employs the most recent methodological advances
in testing for random walks, the multiple variance ratio test, to
re-examine the behaviour of the velocity of money in the G-7 countries.
Monetary velocity is computed as the ratio of nominal income to
contemporaneous money stock, under alternative definitions of income and
money. The empirical results from the present study do not support the RWH
in most of the G-7 countries, with the US M1 and M2 velocities as
exceptions. Furthermore, the results show that the RWH is sensitive to
either the definitions of monetary velocity or the sample period of study.
Journal: Applied Economics
Pages: 569-578
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325552
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325552
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:569-578
Template-Type: ReDIF-Article 1.0
Author-Name: Rajindar Koshal
Author-X-Name-First: Rajindar
Author-X-Name-Last: Koshal
Author-Name: Manjulika Koshal
Author-X-Name-First: Manjulika
Author-X-Name-Last: Koshal
Title: Determinants of tuition at comprehensive
Abstract:
This study attempts to build and estimate a model that explains the
behaviour of the supply of and demand for education at comprehensive
universities in the United States. The statistical analysis uses data for
the year 1990 - 91 for 360 comprehensive universities. The results suggest
that a perfectly competitive market exists for this education. The
quantity of students, cost of education, average SAT score, class size,
level of highest degree offered, and tier of the institution explain
variations in tuition at comprehensive universities.
Journal: Applied Economics
Pages: 579-583
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325561
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325561
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:579-583
Template-Type: ReDIF-Article 1.0
Author-Name: Yiping Huang
Author-X-Name-First: Yiping
Author-X-Name-Last: Huang
Author-Name: K. P. Kalirajan
Author-X-Name-First: K. P.
Author-X-Name-Last: Kalirajan
Title: Enterprise reform and technical efficiency of China's state-owned enterprises
Abstract:
This study investigates whether the enterprise reforms were helpful for
the technical efficiency of China's state-owned enterprises. A stochastic
varying coefficients frontier approach is applied on enterprise survey
data in 1992. The results suggest that exposure to market competition (or
less state intervention) is positively correlated with firms' level of
technical efficiency. There is no evidence, however, of positive
contribution by adoption of the new enterprise institutions to technical
efficiency.
Journal: Applied Economics
Pages: 585-592
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325570
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325570
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:585-592
Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Southwick
Author-X-Name-First: Lawrence
Author-X-Name-Last: Southwick
Title: An economic analysis of murder and accident risks for police in the United States
Abstract:
The idea that US police are at great risk in their jobs is examined. It
is found that their risk of being murdered is actually less than for other
people of the same age and sex. US police are, however, at modestly higher
risk of accidental death than are other workers. A four equation model,
including supply, demand, accident risk, and homicide risk, is estimated
and it is found that police are able to influence the accident and
homicide risks they face and do affect these risks in response to salary
received.
Journal: Applied Economics
Pages: 593-605
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325589
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325589
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:593-605
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Miquel-Angel Galindo Martin
Author-X-Name-First: Miquel-Angel Galindo
Author-X-Name-Last: Martin
Author-Name: Farhang Niroomand
Author-X-Name-First: Farhang
Author-X-Name-Last: Niroomand
Title: Exchange rate sensitivity of the demand for money in Spain
Abstract:
Journal: Applied Economics
Pages: 607-612
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325598
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325598
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:607-612
Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Ho Kim
Author-X-Name-First: Ki-Ho
Author-X-Name-Last: Kim
Title: US inflation and the dollar exchange rate: a vector error correction model
Abstract:
Many studies investigating the relation between inflation and exchange
rates have found that exchange rates influenced inflation, while other
studies have failed to do so or reported mixed results. These findings,
however, might be spurious as the majority of the earlier investigations
suffered from misspecifications of one kind or another. The current paper
addresses the problem by employing an up-to-date and powerful
cointegration method developed by Johansen (1988). In a system of
five-equation vector error correction model, this paper finds that the US
inflation, exchange rate, money supply, income, and interest rate are
cointegrated. The cointegration analysis of the data covering the 1973-95
period reveals that the dollar exchange rate has a significant negative
impact on the inflation measured by the producer price index. It is
further established that the exchange rate Granger causes the inflation.
Journal: Applied Economics
Pages: 613-619
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325606
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325606
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:613-619
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Buckley
Author-X-Name-First: Peter
Author-X-Name-Last: Buckley
Author-Name: Jane Frecknall Hughes
Author-X-Name-First: Jane Frecknall
Author-X-Name-Last: Hughes
Title: Transfer pricing and economic functions analysis: the Japanese paradigm
Abstract:
This paper examines the difficulties facing tax authorities in valuing
cross-border flows from a transactions based analysis, in conditions where
intangibles and services are important and where the multinational firm
concerned is operating a system in which group-wide economic functions
dominate decision making. Its key contention is that the economic
functions of any entity should be examined in order to determine whether
transactions analysis can be used to produce an acceptable value. This is
done in the particular context of Japanese multinational enterprises and
uses two hypothetical situations to demonstrate the inadequacy of
transactions based analysis as a panacea for transfer pricing problems,
especially for transfers of value involving intangibles and services,
which it redefines into two categories, perceptible and imperceptible.
Journal: Applied Economics
Pages: 621-629
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325615
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325615
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:621-629
Template-Type: ReDIF-Article 1.0
Author-Name: Pan-Long Tsai
Author-X-Name-First: Pan-Long
Author-X-Name-Last: Tsai
Author-Name: Kuo-Liang Wang
Author-X-Name-First: Kuo-Liang
Author-X-Name-Last: Wang
Title: Competitiveness of international tourism in Taiwan: US versus Japanese visitors
Abstract:
This paper intends to identify the factors determining the relative
competitiveness of Taiwan's international tourism among a group of seven
East Asian countries. Using data on visitors from the USA and Japan, the
major message which emerged from this study is that there are sharp
differences between factors affecting US visitors and Japanese visitors.
Specifically, we found: (1) the decline of Taiwan's market share in Japan
has been mainly due to appreciation of NT dollars and changing
preferences, whereas they are not crucial factors in the US market; (2)
qualitative supply-side factors indeed could have decisive influences on
the market share. However, their effect is again origin-dependent. The
open-door policy of China is the only important determinant of Taiwan's
competitiveness in the US market, while it has no impact on the Japanese
visitors.
Journal: Applied Economics
Pages: 631-641
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325624
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325624
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:631-641
Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Johannesson
Author-X-Name-First: Magnus
Author-X-Name-Last: Johannesson
Author-Name: Bengt Liljas
Author-X-Name-First: Bengt
Author-X-Name-Last: Liljas
Author-Name: Per-Olov Johansson
Author-X-Name-First: Per-Olov
Author-X-Name-Last: Johansson
Title: An experimental comparison of dichotomous choice contingent valuation questions and real purchase decisions
Abstract:
In this paper the results of an experiment comparing the dichotomous
choice (DC) contingentvaluation (CV) approach with real purchase decisions
for a consumer good are reported. In addition to comparing the standard DC
CV approach with real decisions, we also test the hypothesis that a more
conservative interpretation of the DC approach, where only absolutely sure
yes responses are counted as yes responses, correctly predicts real
purchase decisions. The results show that the hypothetical yes responses
overestimate the real yes responses and that the hypothetical absolutely
sure yes responses underestimate the real yes responses.
Journal: Applied Economics
Pages: 643-647
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325633
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325633
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:643-647
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Ferrante
Author-X-Name-First: Francesco
Author-X-Name-Last: Ferrante
Title: Induced technical change, adjustment costs and environmental policy modelling
Abstract:
In this paper I develop a neo-Schumpeterianmodel of induced technical
change where firms/polluters determine their effort in environment-saving
technical change. Two technological scenarios are distinguished depending
on whether basic research is endogenous or exogenous. Building on this
analytical setting, I show that in the presence of non-linear adjustment
costs the choice of instruments of environmental policy should be tailored
to the actual characteristics of the firms'/polluters' technological
environment. Moreover, this analysis confirms that searching for efficient
environmental policy mixes is more rewarding than focusing on single
instruments, notably pollution taxation.
Journal: Applied Economics
Pages: 649-665
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325642
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325642
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:649-665
Template-Type: ReDIF-Article 1.0
Author-Name: Cam Donaldson
Author-X-Name-First: Cam
Author-X-Name-Last: Donaldson
Author-Name: Andrew Jones
Author-X-Name-First: Andrew
Author-X-Name-Last: Jones
Author-Name: Tracy Mapp
Author-X-Name-First: Tracy
Author-X-Name-Last: Mapp
Author-Name: Jan Abel Olson
Author-X-Name-First: Jan Abel
Author-X-Name-Last: Olson
Title: Limited dependent variables in willingness to pay studies: applications in health care
Abstract:
The appropriate technique for econometric analysis of WTP (willingness to
pay) data is an issue which has not been addressed in many studies of WTP
for health and health care. This paper argues that, whether an open-ended
question or a payment scale approach is adopted, the way in which WTP is
recorded means that limited dependent variable models are more appropriate
than standard regression analysis. Data from an open ended question on WTP
for maternity care contain a large proportion of zeros and the evidence
suggests that a two-part specification performs better than OLS or a
standard Tobit model. If the payment scale method is adopted, our argument
suggests that grouped data regression is an appropriate econometric
technique. In practice, with data from a study in Northern Norway, the
results from OLS and grouped data regression are broadly similar.
Journal: Applied Economics
Pages: 667-677
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325651
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325651
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:667-677
Template-Type: ReDIF-Article 1.0
Author-Name: Aki Kangasharju
Author-X-Name-First: Aki
Author-X-Name-Last: Kangasharju
Title: beta convergence in Finland: regional differences in speed of convergence
Abstract:
This paper estimates β convergence across the 88 Finnish
small-scale subregions from 1934 to 1993 using taxable per capita income
as an indicator of income level. The results resemble those obtained in
other studies for larger areas: regional β convergence in Finland
has been about 2% per year in the long run, whereas in the short run
β has tended to be unstable. Furthermore, this paper finds that it
is possible to identify regional factors which tend to determine growth
rates and steady-state income levels. These determinants are found to
affect regions' individual β convergences. The steady-state level
and speed of a region's individual β seems to be inversely related:
the higher the β the lower the steady-state level.
Journal: Applied Economics
Pages: 679-687
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325660
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325660
File-Format: text/html
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:679-687
Template-Type: ReDIF-Article 1.0
Author-Name: Voxi Heinrich Amavilah
Author-X-Name-First: Voxi Heinrich
Author-X-Name-Last: Amavilah
Title: German aid and trade versus Namibian GDP and labour productivity
Abstract:
This paper examines the effects of German foreign aid to, and net trade
with, Namibia on Namibia's recent (1985-95) economic performance. The
analysis suggests significant benefits for Namibia from trade with and
assistance from Germany. However, domestic capital is found to determine
Namibian economic growth more than net trade with Germany and German
foreign aid to Namibia, while the effect of German capital tends be larger
than that of German aid. A need for direct foreign investment from Germany
to Namibia is inferred. Two types of further investigations are required:
a joint determination of economic growth, aid, trade and capital
formation, and a disaggregation of German aid to Namibia with an analysis
of its individual impacts compared with similar effects of aid from other
donors.
Journal: Applied Economics
Pages: 689-695
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325679
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325679
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:689-695
Template-Type: ReDIF-Article 1.0
Author-Name: Yohane Khamfula
Author-X-Name-First: Yohane
Author-X-Name-Last: Khamfula
Title: Influence of social learning on exchange rate policy in developing countries:a preliminary finding
Abstract:
By using a suitable econometric model, this study shows that beyond
factors postulated by theorists 'social learning' is a very powerful
phenomenon for guiding developing countries in their exchange rate policy.
We introduce two variables that fairly encapsulate features of learning
among neighbours. The new variables, together with those advanced in
theory are then used to determine choice of a managed float by analysing
1993 cross-section data from Asian developing countries.
Journal: Applied Economics
Pages: 697-704
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325688
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325688
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:697-704
Template-Type: ReDIF-Article 1.0
Author-Name: Nigel Driffield
Author-X-Name-First: Nigel
Author-X-Name-Last: Driffield
Author-Name: Max Munday
Author-X-Name-First: Max
Author-X-Name-Last: Munday
Title: The impact of foreign direct investment on UK manufacturing: is there a profit squeeze in domestic firms?
Abstract:
This paper examines the extent to which foreign direct investment (FDI)
in selected UK manufacturing sectors has an impact on reported profits in
domestic firms. Foreign manufacturing firms are characterized by
relatively high labour productivity and low wage shares. Entry by foreign
firms not only impacts on domestic market shares, but also on domestic
cost conditions. As a result, profitability in the indigenous sector may
be reduced. There are a number of policy implications of this analysis
which are explored.
Journal: Applied Economics
Pages: 705-709
Issue: 5
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325697
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Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:705-709
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Vogt
Author-X-Name-First: Michael
Author-X-Name-Last: Vogt
Author-Name: Chutima Wittayakorn
Author-X-Name-First: Chutima
Author-X-Name-Last: Wittayakorn
Title: Determinants of the demand for Thailand's exports of tourism
Abstract:
We investigate the effects of world income and the relative price of
tourism in Thailand on Thailand's exports of tourism. In contrast to
previous studies, we test for stationarity and cointegration of the
variables of the model. We find that the variables are not stationary in
level form, but they are cointegrated. Our estimate of the relative price
elasticity of demand for Thailand's exports of tourism is - 1.199 in the
short run and - 0.891 in the long run. The corresponding estimates for the
income elasticity of demand are 1.926 and 2.342 respectively. However,
only the short-run price elasticity of demand is significantly different
from zero.
Journal: Applied Economics
Pages: 711-715
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325417
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325417
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:711-715
Template-Type: ReDIF-Article 1.0
Author-Name: Annette Tomal
Author-X-Name-First: Annette
Author-X-Name-Last: Tomal
Title: The relationship between hospital mortality rates, and hospital, market and patient characteristics
Abstract:
This study analyses the relationship between hospital outcome,
specifically mortality rates, and various hospital and market
characteristics. The data are for all general acute-care hospitals in
California in 1991 that had at least 50 Medicare cases selected by the
Health Care Financing Administration (HCFA) for their computation of 1991
observed and predicted mortality rates. The dependent variable was
constructed from these mortality rates. Hospital and market
characteristics were obtained from California's Office of Statewide Health
Planning and Development 1991 tapes, the American Hospital Association's
annual 1991 report, 1990 Census data, and HCFA's 1991 Medicare Hospital
Mortality Information Report. Highly significant results (p < 0.01)
were found for three of the predictor variables: improved mortality rates
were associated with a lower proportion of Medicaid patients, with a
larger market, and with a higher prior-year profit margin. Other factors
that contributed to improved mortality rates (p < 0.05 or 0.10) were
more concentrated hospital markets, a lower percentage of HMO patients,
and a higher percentage of residents with at least a Bachelor's degree.
Characteristics without significant coefficients were hospital size, the
percentage of residents below poverty level, more 'high-tech' services,
the proportion of Medicare patients, having a residency programme, and
membership in COTH (Council of Teaching Hospitals).
Journal: Applied Economics
Pages: 717-725
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325426
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325426
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:717-725
Template-Type: ReDIF-Article 1.0
Author-Name: David Ault
Author-X-Name-First: David
Author-X-Name-Last: Ault
Author-Name: Gilbert Rutman
Author-X-Name-First: Gilbert
Author-X-Name-Last: Rutman
Title: Factors affecting levels and growth rates in the wage rates of women: evidence from nursing
Abstract:
Using data from two surveys of nurses (1981 and 1989), the study examines
the factors affecting the levels and growth rates in the wage rates paid
to women, especially married women, who were licensed as Registered
Nurses. Our results indicate that the influence of such household
characteristics as marital status, age and number of children, and
spouse's characteristic, tended to diminish over the 1980s. The evidence
further suggests that the penalties for frequent switches in employment
state were larger at the end of the decade than at the beginning. Further,
wages paid to nurses with baccalaureates were statistically the same as
those paid to nurses with lesser formal education. The return to the
baccalaureate appears to be in the form of the higher wages and salaries
earned by those who obtain post-baccalaureate degrees.
Journal: Applied Economics
Pages: 727-739
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325435
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325435
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:727-739
Template-Type: ReDIF-Article 1.0
Author-Name: Xin Meng
Author-X-Name-First: Xin
Author-X-Name-Last: Meng
Title: Gender occupational segregation and its impact on the gender wage differential among rural-urban migrants: a Chinese case study
Abstract:
Since the late 1980s, massive rural - urban migration in China has
attracted considerable attention from economists and policymakers, both
within and outside China. One of the most striking features of rural -
urban migration is that job attainment among the migrants differs
considerably between males and females. It is of great interest to know
the reasons for this difference and, more importantly, whether gender
occupational segregation has a large impact on the gender wage
differential among migrants. This paper examines these issues using data
on 1504 migrants collected in Jinan city, Shandong province. It is found
that gender occupational segregation in this sector is mainly due to the
unequal treatment of male and female attributes in occupational assignment
and that this contributes very significantly to the gender wage
differential among migrants. A comparison with another study on China's
rural industrial labour market is made, which suggest that
intra-occupational gender wage discrimination is lower in the labour
market for rural - urban migrants than in the labour market in the rural
industrial sector.
Journal: Applied Economics
Pages: 741-752
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325444
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:741-752
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Arnade
Author-X-Name-First: Carlos
Author-X-Name-Last: Arnade
Author-Name: Daniel Pick
Author-X-Name-First: Daniel
Author-X-Name-Last: Pick
Author-Name: Munisamy Gopinath
Author-X-Name-First: Munisamy
Author-X-Name-Last: Gopinath
Title: Testing oligopoly power in domestic and export markets
Abstract:
Empirical applications of testing oligopoly power in different industries
are based on the 'new empirical industrial organization' (NEIO) approach.
Parallel to this approach, theoretical and empirical applications to
testing oligopoly power in international trade have also emerged. A
shortcoming of these approaches is that they do not account for the
possibility that an industry, which is active in the domestic and
international markets, may exhibit oligopoly power in both markets. We
extend the existing models by simultaneously accounting for domestic and
international components of four industries in testing for oligopoly
power. We found that in some cases, industries exhibit oligopoly behaviour
in either or both markets.
Journal: Applied Economics
Pages: 753-760
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325453
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325453
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:753-760
Template-Type: ReDIF-Article 1.0
Author-Name: D. M. Nachane
Author-X-Name-First: D. M.
Author-X-Name-Last: Nachane
Author-Name: Prasad Ranade
Author-X-Name-First: Prasad
Author-X-Name-Last: Ranade
Title: India's trade balance in the 1980s an econometric analysis
Abstract:
The paper is an examination of India's trade balance in the 1980s. The
approach attempted is of examining the bilateral trade balances of India
with nine trading partners from the non-communist bloc. The long-run
equilibrium relations are studied via two VAR models in Johansen's
multivariate cointegration framework. Five hypotheses of interest are
singled out for attention. The nominal and real exchange rates
consistently emerge as important influences on the trade balance. However,
as the exchange rates fail weak exogeneity tests, policy implications are
not clear cut.
Journal: Applied Economics
Pages: 761-774
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325462
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325462
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:761-774
Template-Type: ReDIF-Article 1.0
Author-Name: Hunter Humphries
Author-X-Name-First: Hunter
Author-X-Name-Last: Humphries
Author-Name: Stephen Knowles
Author-X-Name-First: Stephen
Author-X-Name-Last: Knowles
Title: Does agriculture contribute to economic growth? Some empirical evidence
Abstract:
This paper augments the Solow - Swan model of economic growth to include
the share of the labour force working outside the agricultural sector as a
labour augmenting variable in the aggregate production function. The
cross-country empirical results suggest that transferring labour from the
agricultural sector to other sectors of the economy is associated with
economic growth. This result is robust to using instrumental variables to
control for the potential endogeneity of the relative size of the
agricultural labour force.
Journal: Applied Economics
Pages: 775-781
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325471
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325471
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:775-781
Template-Type: ReDIF-Article 1.0
Author-Name: Kornelius Kraft
Author-X-Name-First: Kornelius
Author-X-Name-Last: Kraft
Title: An evaluation of active and passive labour market policy
Abstract:
This paper reports results of an empirical study on the effectiveness of
labour market policy. Data from Austria, France, Germany, Great Britain,
Sweden and the United States are used to apply a simultaneous equation
model with wages and employment being the endogenous variables. In order
to explain employment, the amount of unemployment benefits per unemployed
(passive labour market policy) and payment for wage subsidies and training
per employed and unemployed person (active labour market policy) are used
in addition to real wages and output. Wages and output have their expected
impact on total employment. It turns out that passive labour market policy
has a negative, and active labour market measures a positive, effect on
the number of persons employed.
Journal: Applied Economics
Pages: 783-793
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325480
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325480
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:783-793
Template-Type: ReDIF-Article 1.0
Author-Name: Chee-Ruey Hsieh
Author-X-Name-First: Chee-Ruey
Author-X-Name-Last: Hsieh
Title: Health risk and the decision to quit smoking
Abstract:
This study contributes to the understanding of the decision to quit
smoking by taking into account the learning of new risk information. The
specific hypothesis tested is that smokers learn new risk information and
hence create an incentive to quit from their own experience. Probit models
are estimated for the decision to quit smoking based on longitudinal data
obtained from Taiwan. It is shown that health risk, measured by the
observed change in health status over the period between two surveys, has
a relatively substantial positive effect on the probability of quitting
smoking. In addition, the results indicate that schooling has a
significantly positive effect on the probability of quitting. These
findings are consistent with the predictions of a Bayesian learning
framework and suggest that the risk information obtained from individual
experience, which is the sole source of information available to smokers
in most developing countries, plays the same role that public information
does.
Journal: Applied Economics
Pages: 795-804
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325499
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325499
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:795-804
Template-Type: ReDIF-Article 1.0
Author-Name: Shane Bonetti
Author-X-Name-First: Shane
Author-X-Name-Last: Bonetti
Title: Distinguishing characteristics of degrees of success and failure in economic sanctions episodes
Abstract:
This paper uses 104 episodes from the Hufbauer et al. (1985, 1990)
dataset to examine the correlates of classes of outcomes of economic
sanctions. The parsimonious equations presented identify the
characteristics of sanctions episodes conducive to success rather than
marginal success, and the characteristics productive of failure rather
than marginal failure. Failure is most likely if there is significant
third party assistance to the target, and if the pre-existing trade
linkage between sender and target is small. Success is most easily
achieved when the objective is not classified as 'modest', and when
pre-sanction relations between sender and target are cordial or neutral.
The equations presented overcome data and methodological flaws of earlier
studies, exhibit reasonable predictive accuracy, and satisfy a battery of
tests of statistical significance, hypothesized coefficient sign, goodness
of fit, high likelihood and informational efficiency.
Journal: Applied Economics
Pages: 805-813
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325507
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325507
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:805-813
Template-Type: ReDIF-Article 1.0
Author-Name: Nadeem Burney
Author-X-Name-First: Nadeem
Author-X-Name-Last: Burney
Title: Economies of scale and utilization in electricity generation in Kuwait
Abstract:
Cost structure of electricity generation in Kuwait has been examined,
with specific focus on the economies of scale and utilization. This has
been done by estimating a translog variable-cost function using
time-series data covering the period from 1965 to 1990. The results
indicate the existence of diseconomies of scale in the generation of
electricity, but no economies or diseconomies of utilization.
Journal: Applied Economics
Pages: 815-819
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325516
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325516
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:815-819
Template-Type: ReDIF-Article 1.0
Author-Name: Basanta Pradhan
Author-X-Name-First: Basanta
Author-X-Name-Last: Pradhan
Author-Name: A. Subramanian
Author-X-Name-First: A.
Author-X-Name-Last: Subramanian
Title: Money and prices : some evidence from India
Abstract:
The objective of this paper is to examine the long-run relationship
between supply of money and prices. The prices considered are wholesale
price and consumer price indices for industrial workers, urban non-manual
workers and agricultural labourers. Using the null hypothesis of
cointegration, it is shown that the supply of money and consumer price
indices for urban non-manual workers and agricultural labourers are
cointegrated in the long-run. Both the prices - namely, urban non-manual
workers and agricultural labourers - form a stable relationship with money
supply in the long-run.
Journal: Applied Economics
Pages: 821-827
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325525
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325525
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:821-827
Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Cohen
Author-X-Name-First: Marcel
Author-X-Name-Last: Cohen
Title: Linking price dispersion to product differentiation - incorporating aspects of customer involvement
Abstract:
The fact that product differentiation can cause price dispersion - price
differences between alternative brands of what are seemingly identical
products - is not surprising. Our contribution is to establish not
whether, but how, it does so. We explore the mechanisms involved using a
variant of Hotelling's market line model. We make no explicit assumptions
about the functional form of the consumer's utility function so that we
derive a general relationship between price dispersion and product
differentiation. We then survey 16 product groups to identify the
functional form of the consumer's utility function that allows our result
to best fit real-world circumstances. We show that it is not product
differentiation per se that causes price dispersion but rather the
presence of a differential advantage of one product over another. More
importantly, we show that the impact of a differential advantage in
causing price dispersion is amplified (or attenuated) by an aspect of
customer involvement in a purchase. The greater the customer involvement
in a purchase the more amplified is the impact of product differentiation
on price dispersion but this is sensitive only to logarithmic (roughly,
order of magnitude) changes in customer involvement.
Journal: Applied Economics
Pages: 829-835
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325534
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325534
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:829-835
Template-Type: ReDIF-Article 1.0
Author-Name: Khalifa Ghali
Author-X-Name-First: Khalifa
Author-X-Name-Last: Ghali
Title: Public investment and private capital formation in a vector error-correction model of growth
Abstract:
Most of the literature dealing with the impact of public investment on
private capital formation and economic growth focuses either on
cross-section or static analysis. However, investigation of the long-run
dynamic interactions between private and public investment and growth is
much more insightful for public policy aiming at the determination of the
appropriate size of its public sector. This paper extends the model of
Barth and Cordes (1980) and uses multivariate cointegration techniques to
develop a vector error-correction model useful for investigating the
long-run effects of public investment on private capital formation and
economic growth. We apply our methodology to a developing country
implementing the IMF debt-stabilization programmes and show how, in this
country, public investment is having a negative short-run impact on
private investment and a negative long-run impact on both private
investment and economic growth.
Journal: Applied Economics
Pages: 837-844
Issue: 6
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325543
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325543
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Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:837-844
Template-Type: ReDIF-Article 1.0
Author-Name: Fong-Lin Chu
Author-X-Name-First: Fong-Lin
Author-X-Name-Last: Chu
Author-Name: Jack Hou
Author-X-Name-First: Jack
Author-X-Name-Last: Hou
Title: An extension of currency substitution into the near monies framework: a case for Canada
Abstract:
This paper attempts to estimate the nearness of near monies in Canada
including foreign monetary assets, i.e. US dollars. The results enable us
to make a statement about how substitutable US dollars are in the Canadian
private asset portfolio. This brought the event of currency substitution
into the near money framework and we found US dollars are far from good
substitutes for Canadian narrowly defined money. Our analysis further
provides a reconciliation of results obtained by Miles (1978), Bordo and
Choudhri (1982), Husted (1984) and Ghosh (1989).
Journal: Applied Economics
Pages: 845-851
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325273
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325273
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:845-851
Template-Type: ReDIF-Article 1.0
Author-Name: Abul Masih
Author-X-Name-First: Abul
Author-X-Name-Last: Masih
Author-Name: Rumi Masih
Author-X-Name-First: Rumi
Author-X-Name-Last: Masih
Title: A fractional cointegration analysis of the long-run relationship between black and official foreign exchange rates: the case of the Brazilian cruzeiro
Abstract:
This paper applies a relatively new but generalized concept of fractional
cointegration to shed some light on the validity of a long-run
relationship between monthly black and official US dollar rates of the
Brazilian cruzeiro. An investigation of the stochastic properties of these
rates reveals that, while the relationship is not cointegrated in their
logs, they appear to be fractionally cointegrated if we allow for mean
reverting processes that are CI (1, d) with 0< d < 1. The paper
demonstrates that relaxing the condition that the residual from the
cointegration equation must be a I (0) process, captures a much wider
class of mean-reversion behaviour. Furthermore, an analysis of the
short-run dynamics propelling the long-run relationship tends to imply
that although the official rate influences the changes in the black rate,
this is purely over the short-run. In the longer term, the black rate is
found to be the initial receptor of any exogenous shock to the equilibrium
and it is the official exchange rate that bears the brunt of short-run
adjustment to re-establish the long-run equilibrium relationship. The
approach illustrated in this paper is shown to hold enormous potential for
tests of mean reversion involving hypotheses popular to economic and
financial research in general, where the dynamics of time-series data are
under constant scrutiny.
Journal: Applied Economics
Pages: 853-861
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325282
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325282
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:853-861
Template-Type: ReDIF-Article 1.0
Author-Name: Juha Kettunen
Author-X-Name-First: Juha
Author-X-Name-Last: Kettunen
Title: Method of pay in Finnish industry
Abstract:
In this paper, a dynamic economic model of the method of pay is derived
to serve as a background to an empirical study. The model gives, for
example, a prediction that employees who have a short attachment to a firm
are apt to engage in incentive work. Special attention is paid to
unobserved heterogeneity across workers in a logit model of the method of
pay. A new estimator based on a small variance approximation of unobserved
heterogeneity is derived.
Journal: Applied Economics
Pages: 863-873
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325291
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:863-873
Template-Type: ReDIF-Article 1.0
Author-Name: Joaquin Millan
Author-X-Name-First: Joaquin
Author-X-Name-Last: Millan
Author-Name: Natalia Aldaz
Author-X-Name-First: Natalia
Author-X-Name-Last: Aldaz
Title: Agricultural productivity of the Spanish regions: a non-parametric Malmquist analysis
Abstract:
Productivity growth for the agricultural sectors of the 17 Spanish
regions over the period 1977-88 is studied using non-parametric
programming techniques. Productivity changes based on conventional inputs
are linked to other economic, geographic and institutional issues. Average
technical change in the Spanish regions grew at an annual rate of 2.9%,
but with great regional variation. This paper presents a clear
characterization of areas with greater technical progress, and the regions
with technical regress.
Journal: Applied Economics
Pages: 875-884
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325309
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325309
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:875-884
Template-Type: ReDIF-Article 1.0
Author-Name: Colin Allitt
Author-X-Name-First: Colin
Author-X-Name-Last: Allitt
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: Consumption patterns as a measure of capital mobility: evidence from some APEC countries
Abstract:
Consumption patterns are used to measure capital mobility within the APEC
region, both on a bilateral and multilateral basis. Two models are
estimated by IV, SUR and OLS using quarterly data for four countries: the
US, Japan, Canada and Australia. The results show that the hypothesis of
perfect capital mobility is rejected, and some results even indicate
autarky. It is argued, however, that the hypothesis of perfect capital
mobility is unreasonable and that the consumption criterion is
inappropriate because it assumes real interest equalization.
Journal: Applied Economics
Pages: 885-891
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325318
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325318
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:885-891
Template-Type: ReDIF-Article 1.0
Author-Name: Diansheng Dong
Author-X-Name-First: Diansheng
Author-X-Name-Last: Dong
Author-Name: Atanu Saha
Author-X-Name-First: Atanu
Author-X-Name-Last: Saha
Title: He came, he saw, (and) he waited: an empirical analysis of inertia in technology adoption
Abstract:
The innovation adoption literature has focused primarily on a producer's
decision of whether and how much to adopt. An equally pertinent question
is when to adopt, because in the case of new technologies it often 'pays
to wait' for more information. We propose a double-limit hurdle model to
analyse adoption intensity and inertia in the context of a divisible
technology. The proposed framework incorporates probit or Tobit models as
testable special cases. A maximum likelihood estimation framework is set
out and generalized to account for heteroscedastic errors. The empirical
analysis, which uses household-level data from India's semi-arid tropics,
provides new insights into the factors influencing adoption inertia and
intensity.
Journal: Applied Economics
Pages: 893-905
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325327
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325327
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:893-905
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Lee
Author-X-Name-First: Michael
Author-X-Name-Last: Lee
Author-Name: Ritchard Longmire
Author-X-Name-First: Ritchard
Author-X-Name-Last: Longmire
Author-Name: Laszlo Matyas
Author-X-Name-First: Laszlo
Author-X-Name-Last: Matyas
Author-Name: Mark Harris
Author-X-Name-First: Mark
Author-X-Name-Last: Harris
Title: Growth convergence: some panel data evidence
Abstract:
This paper implements a panel data approach of the Solow model to study
the phenomenon of growth convergence for 22 OECD countries. It shows that
although the derived estimable Solow model is probably underspecified from
an econometric point of view, it is still possible to conclude that there
is a likely convergence to a steady state rate of about 2-4%.
Journal: Applied Economics
Pages: 907-912
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325336
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325336
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:907-912
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Chezum
Author-X-Name-First: Brian
Author-X-Name-Last: Chezum
Author-Name: John Garen
Author-X-Name-First: John
Author-X-Name-Last: Garen
Title: Are union productivity effects overestimated?: evidence from coal mining
Abstract:
The empirical literature of the influence of unions on productivity is
extended by considering the effect in an industry with heterogeneous
firms. Recent theoretical papers suggest that, in such an industry, unions
will tend to organize the exogenously 'more productive' firms. Thus, a
spurious correlation between unions and productivity may emerge. We test
this hypothesis by estimating production functions for coal with data from
Eastern Kentucky underground coal mines. The aspect of mine heterogeneity
that we focus on is the width of the mine's seam of coal. Wider seams
increase productivity. Empirically, we find that unions disproportionately
organize mines with wider seams and this accounts for the positive
relationship between unions and productivity observed in our data. In
fact, once seam thickness is accounted for, the estimated effect of unions
on productivity is negative.
Journal: Applied Economics
Pages: 913-918
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325345
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325345
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:913-918
Template-Type: ReDIF-Article 1.0
Author-Name: Almas Heshmati
Author-X-Name-First: Almas
Author-X-Name-Last: Heshmati
Title: Efficiency measurement in rotating panel data
Abstract:
Rotating panel data are used with estimation of stochastic production
frontier. The model can be viewed as a generalization of the regular
production function estimation that accommodates technical inefficiency as
well as firm heterogeneity. In particular, while estimating technical
efficiency for each firm over time we control for firmspecific effects and
separate them from technical inefficiency. Estimation of the model is
considered in two steps. In the first step we estimate parameters of the
underlying productionfunction using generalized least squares methodwhich
are then used in the estimation of technical efficiency in the second
step. As an empirical application we used rotating data on 1425 Swedish
dairy farms observed during 1976-1988. The mean technical efficiency of
these farms is found to be 94.5% and 16% of the farms are fully efficient.
Evidence of technical regress about 1% per annum is observed during 1976
to 1984.
Journal: Applied Economics
Pages: 919-930
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325354
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:919-930
Template-Type: ReDIF-Article 1.0
Author-Name: Sulayman Al-Qudsi
Author-X-Name-First: Sulayman
Author-X-Name-Last: Al-Qudsi
Title: Labour participation of Arab women: estimates of the fertility to labour supply link
Abstract:
Research conducted in this paper has two objectives. First, to review
recent aggregate trends in Arab female employment and its link to
fertility. Second, to apply a two-step econometric model to micro data
sets of four Arab countries in order to estimate the impact of fertility
and its correlates on the labour supply of Arab women. The model combines
a Poisson fertility count function with a Probit binary function. We find
that the two-step-modelling framework provides important insights about
the fertility - participation link. The Poisson maximum likelihood
estimation demonstrates that age at marriage, women's education, infant
mortality and preference for male offspring are important determinants of
fertility. In all countries examined, our findings confirm that fertility
produces a strong negative influence on women's labour participation.
Therefore, policies that are designed to influence participation will be
more effective if consistent companion fertility policies are in place.
Journal: Applied Economics
Pages: 931-941
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325363
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325363
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:931-941
Template-Type: ReDIF-Article 1.0
Author-Name: Kang Park
Author-X-Name-First: Kang
Author-X-Name-Last: Park
Title: Distribution and growth: cross-country evidence
Abstract:
An endogenous growth model is presented to examine the determinants of
economic growth and income distribution and their relationship. Three
major findings from a cross-country analysis of 45 countries are: (1) a
higher level of educational attainment of the labour force has an
equalizing effect on income distribution, while the larger the dispersion
of schooling among the labour force, the greater the income inequality;
(2) human capital investment as well as physical capital investment are
significant factors contributing to economic growth; and (3) income
inequality has a negative effect on economic growth, supporting the
existence of a complementary relationship between equity and growth.
Journal: Applied Economics
Pages: 943-949
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325372
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325372
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:943-949
Template-Type: ReDIF-Article 1.0
Author-Name: Ivar Gaasland
Author-X-Name-First: Ivar
Author-X-Name-Last: Gaasland
Author-Name: Erling Vardal
Author-X-Name-First: Erling
Author-X-Name-Last: Vardal
Title: Tariff or quota protection-a case study of the Norwegian apple market
Abstract:
Tariffs and quotas are alternative trade instruments. In most cases it
has been shown that the use of tariffs results in a higher national
welfare than the use of quotas. Most of the research in this field has
been purely theoretical. This paper aims to give an empirical
contribution. Referring to the Norwegian apple market, we analyse the
effects of tariffs and quotas. A tariff system is estimated to be slightly
more efficient than a quota system (+ 2%). However, the distributional
effects are substantial. Wholesalers and importers are main gainers in a
quota system, while consumers and farmers are losers.
Journal: Applied Economics
Pages: 951-957
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325381
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325381
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:951-957
Template-Type: ReDIF-Article 1.0
Author-Name: Sudeep Haldar
Author-X-Name-First: Sudeep
Author-X-Name-Last: Haldar
Author-Name: Vithala Rao
Author-X-Name-First: Vithala
Author-X-Name-Last: Rao
Title: A micro-analytic threshold model for the timing of first purchases of durable goods
Abstract:
A micro-analytic threshold model to describe the timing of household
purchases of consumer durable goods is developed and tested. The model
incorporates unobserved heterogeneity via a generalized gamma distribution
and accounts for time varying covariates. Further, we employ estimation
methods applicable or purchase data observed at periodic intervals of
time. The model outperforms other competing models for predicting the
timing of purchase of durable goods in terms of fit and predictive
ability. In particular, this model outperforms the logit model and the
diffusion model. The generalized gamma timing model predicts well the time
to purchase the durable good; we show how it can be employed for
micro-segmentation of households. Several research directions and
applications are described.
Journal: Applied Economics
Pages: 959-974
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325390
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325390
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:959-974
Template-Type: ReDIF-Article 1.0
Author-Name: Haiyan Song
Author-X-Name-First: Haiyan
Author-X-Name-Last: Song
Author-Name: Peter Romilly
Author-X-Name-First: Peter
Author-X-Name-Last: Romilly
Author-Name: Xiaming Liu
Author-X-Name-First: Xiaming
Author-X-Name-Last: Liu
Title: The UK consumption function and structural instability: improving forecasting performance using a time-varying parameter approach
Abstract:
Previous studies indicate that the poor forecasting performance of
constant parameter UK consumption expenditure models is caused by
structural instability in the underlying data generating process.
Typically, this instability is removed by reparameterization within the
constant parameter framework. An alternative modelling strategy is to
allow some, or all, of the parameters to vary over time. A UK non-durable
consumption expenditure model with time-varying parameters is developed,
based on the permanent income hypothesis of Friedman (1957). This model
takes into account temporal changes in the average and marginal
propensities to consume. The variation in the parameter estimates is given
an economic interpretation in terms of the influence of omitted variables,
namely UK financial liberalization and expectational changes. The
forecasting performance of this model is superior to that of two widely
used constant parameter models. Further tests show that, even if these
constant parameter models are respecified as time varying parameter
models, the authors' model still retains a superior forecasting
performance.
Journal: Applied Economics
Pages: 975-983
Issue: 7
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325408
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325408
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Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:975-983
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Flores De Frutos
Author-X-Name-First: Rafael Flores
Author-X-Name-Last: De Frutos
Author-Name: Mercedes Gracia-Diez
Author-X-Name-First: Mercedes
Author-X-Name-Last: Gracia-Diez
Author-Name: Teodosio Perez
Author-X-Name-First: Teodosio
Author-X-Name-Last: Perez
Title: Public capital stock and economic growth: an analysis of the Spanish economy
Abstract:
The objective of this paper is to evaluate the short- and long-term
effects of public investment in infrastructure on aggregate output, labour
and capital formation in the private sector. The problem is analysed in a
dynamic multivariate framework, which allows for explicit consideration of
feedback among all the variables. This approach generalizes the current
literature, which relies on a single-equation model to estimate production
functions and implicitly assumes the absence of feedback relationships.
For the Spanish economy, our results suggest positive long-term effects of
public investment on the private sector variables.
Journal: Applied Economics
Pages: 985-994
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325156
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325156
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:985-994
Template-Type: ReDIF-Article 1.0
Author-Name: George Ford
Author-X-Name-First: George
Author-X-Name-Last: Ford
Author-Name: John Jackson
Author-X-Name-First: John
Author-X-Name-Last: Jackson
Title: On the interpretation of policy effects from estimates of simultaneous systems of equations
Abstract:
The purpose of this paper is threefold: first, we warn analysts against
the use of structural coefficient estimates alone for deducing
quantitative inferences concerning many policy experiments. Second, we
offer a potential solution to the problem by proposing a mutatis mutandis
approach to deducing the 'full effect' of a policy change on the
endogenous variables of the model. Finally, we show that this approach
yields consistent estimates of the reduced form parameters, the true
solution to the difficulty. An illustration is provided.
Journal: Applied Economics
Pages: 995-999
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325165
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325165
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:995-999
Template-Type: ReDIF-Article 1.0
Author-Name: Alfons Oude Lansink
Author-X-Name-First: Alfons Oude
Author-X-Name-Last: Lansink
Author-Name: Geert Thijssen
Author-X-Name-First: Geert
Author-X-Name-Last: Thijssen
Title: Testing among functional forms: an extension of the Generalized Box-Cox formulation
Abstract:
This paper uses the Generalized Box - Cox framework and Double Length
artificial Regression to test whether different specifications of the
profit function are able to mimic the technology underlying panel data of
Dutch arable farms for the period 1970 - 1988. To this end, a linear GBC
is developed that includes the Generalized Leontief, Normalized Quadratic
and Symmetric Normalized Quadratic as special cases. A Lagrange multiplier
test that avoids estimation of the linear GBC is used to test (subsets of)
functional forms against (simplifications of) the linear GBC. Functional
form results are also evaluated in terms of regularity conditions,
parameter significance and reasonability of elasticities. On this data
set, the NQ outperforms the other forms on most criteria.
Journal: Applied Economics
Pages: 1001-1010
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325174
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325174
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1001-1010
Template-Type: ReDIF-Article 1.0
Author-Name: Frederick Joutz
Author-X-Name-First: Frederick
Author-X-Name-Last: Joutz
Author-Name: H. O. Stekler
Author-X-Name-First: H. O.
Author-X-Name-Last: Stekler
Title: Data revisions and forecasting
Abstract:
The relationship between two sets of GNP data, the earliest and the first
revisions, is examined. This comparison enables us to determine whether
the early numbers are valuable to forecasters. The analysis uses two
methods. The first is based on a technique which has been used to evaluate
whether financial and economic forecasts are valuable to the users. The
second approach uses time series techniques. We conclude that revisions to
the 15-day estimates that occur when the 45-day numbers are released are
successful and that the 15-day numbers are useful to forecasters.
Journal: Applied Economics
Pages: 1011-1016
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325183
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325183
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1011-1016
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Bohl
Author-X-Name-First: Martin
Author-X-Name-Last: Bohl
Author-Name: Friedrich Sell
Author-X-Name-First: Friedrich
Author-X-Name-Last: Sell
Title: Demand for cash balances in Germany: theoretical underpinnings and empirical evidence
Abstract:
The purpose of this paper is to develop and test a cash-in-advance model
of an open economy. Following the contribution of Bohn (1991) and using
intertemporal balance of payments theory we set up a currency demand
function with real consumption expenditure, the foreign interest rate and
exchange rate expectations as the core explaining variables. We test the
model with the aid of the econometric techniques proposed by Hylleberg,
Engle, Granger and Yoo (1990) and Engle, Granger, Hylleberg and Lee (1993)
relying on quarterly seasonally unadjusted data for Germany in the period
1960: 1 to 1993: 4. The findings reported in the paper support the
suggestions made by the theoretical model.
Journal: Applied Economics
Pages: 1017-1026
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325192
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325192
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1017-1026
Template-Type: ReDIF-Article 1.0
Author-Name: Dale Truett
Author-X-Name-First: Dale
Author-X-Name-Last: Truett
Author-Name: Lila Truett
Author-X-Name-First: Lila
Author-X-Name-Last: Truett
Title: A cost function analysis of the Mexican nonelectrical machinery industry
Abstract:
This paper investigates the existence of economies of scale in the
Mexican nonelectrical machinery industry as well as the direct and cross
price elasticities of demand for its inputs (capital, labour, and
intermediate goods) by estimating a translog cost function. There is
evidence that the industry exhibits economies of scale but that
technological change has not significantly affected cost. Direct demand
elasticities for the inputs are negative and less than one, but capital
displays a higher price elasticity of demand than does labour or
intermediate goods. In general, the input cross price elasticities
indicate that they are substitutes. The results suggest that in the early
years of the North American Free Trade Agreement, expansion of the
industry may increase its competitiveness and generate some employment.
The best near-term prospects for growth in the industry appear to be
through foreign investment or joint ventures oriented toward both exports
and the procurement activities of government and government-related
entities in Mexico.
Journal: Applied Economics
Pages: 1027-1035
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325200
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325200
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1027-1035
Template-Type: ReDIF-Article 1.0
Author-Name: David Smant
Author-X-Name-First: David
Author-X-Name-Last: Smant
Title: Real business cycle theory and monetary policy: the multiplier approach
Abstract:
According to real business cycle theory the money multiplier explains
money-output correlations because nominal policy is impotent. This paper
re-examines the key assumptions of the multiplier approach and presents
empirical evidence for five countries. The main conclusions are as
follows. First, base money does Granger-cause economic activity. Second,
actual operating procedures of monetary authorities prevent
orthogonalization of base money and multiplier changes. The distinction
between real and nominal aspects of monetary policy is therefore not very
helpful.
Journal: Applied Economics
Pages: 1037-1053
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325219
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325219
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1037-1053
Template-Type: ReDIF-Article 1.0
Author-Name: Jordan Shan
Author-X-Name-First: Jordan
Author-X-Name-Last: Shan
Author-Name: Fiona Sun
Author-X-Name-First: Fiona
Author-X-Name-Last: Sun
Title: On the export-led growth hypothesis: the econometric evidence from China
Abstract:
The export-led growth hypothesis is tested by estimating an augmented
growth equation on the basis of times series data from China. The Granger
no-causality procedure developed by Toda and Yamamoto (Journal of
Econometrics, 66, 1995) was applied to test the causality link between
exports and economic growth in a VAR system. Three distinct features in
this paper stand out compared to earlier studies on China: first, we have
gone beyond the traditional two-variable relationship by building a VAR
model in the production function context to avoid a possible specification
bias; second, we follow Riezman, Whiteman and Summers (Empirical
Economics, 21, 1996) to test the export-led growth hypothesis while
controlling for the growth of imports to avoid producing a spurious
causality result; third, we test the sensitivity of causality test results
under different lag structures along with the choice of optimal lags; in
particular, the methodology developed by Toda and Yamamoto (1995) is
expected to improve the standard F -statistics in the causality test
process. The results indicate a bidirectional causality between exports
and real industrial output in China in the 1987-1996 period. The
export-led growth hypothesis, defined as a unidirectional causal ordering
from exports to output, is therefore rejected in the case of China despite
the positive contribution of exports on China's real output.
Journal: Applied Economics
Pages: 1055-1065
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325228
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1055-1065
Template-Type: ReDIF-Article 1.0
Author-Name: Michael French
Author-X-Name-First: Michael
Author-X-Name-Last: French
Author-Name: Laura Dunlap
Author-X-Name-First: Laura
Author-X-Name-Last: Dunlap
Title: Compensating wage differentials for job stress
Abstract:
Recent medical studies have demonstrated a strong relationship between
mental stress and cardiac events such as myocardial infarction and stroke.
In the workplace, stress once accounted for less than 5% of all
occupational disease claims, but it now accounts for over 15%. Although
research on the effects of mental stress is increasing, few studies offer
an economic perspective. In this paper, we examine the effects of job
stress on weekly wages and explore the possibility that stress commands a
compensating wage differential. Our findings suggest that, ceteris
paribus, a wage differential does exist between workers experiencing
mental stress and their 'non-stressed' cohorts. After controlling for
other demographic and occupational factors, we found a statistically
significant wage premium ranging from 3 to 10% attributable to mental
stress. In addition, the magnitude of the differential varies by gender.
Journal: Applied Economics
Pages: 1067-1075
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325237
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325237
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1067-1075
Template-Type: ReDIF-Article 1.0
Author-Name: Akbar Marvasti
Author-X-Name-First: Akbar
Author-X-Name-Last: Marvasti
Author-Name: David Smyth
Author-X-Name-First: David
Author-X-Name-Last: Smyth
Title: Barter in the US economy:a macroeconomic analysis
Abstract:
In this paper, a statistical model is developed to examine the
determinants of the growing level of barter transactions in the US.
Although a barter system is believed to be Pareto inferior to a money
system, recent statistics of the estimated level of barter transactions in
the US show a rapidly growing interest by large corporations as well as
individuals in this type of trade. The primary obstacle in empirical
research in this area is the difficulty of measuring the size of barter
transactions. Here, data from barter exchange organizations are used to
test the significance of several variables. The Ordinary Least Squares,
and Cointegration and Error Correction Models are employed as two
alternative empirical techniques to analyse the data. The results support
the counter-cyclical arguments as well as the inflation factor. However,
the notion of tax evasion as a motive in organized barter receives only a
partial support.
Journal: Applied Economics
Pages: 1077-1088
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325246
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325246
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1077-1088
Template-Type: ReDIF-Article 1.0
Author-Name: Lee Rivers Mobley
Author-X-Name-First: Lee Rivers
Author-X-Name-Last: Mobley
Author-Name: Jon Magnussen
Author-X-Name-First: Jon
Author-X-Name-Last: Magnussen
Title: An international comparison of hospital efficiency: does institutional environment matter?
Abstract:
The consensus among many health economists is that no meaningful
performance differences exist among for-profit and non-profit hospitals in
the US, but this topic has continued to be a matter of academic, judicial,
and public policy interest. A similar debate has ensued internationally,
regarding the potential efficiency gains from privatization of public
enterprises. In this paper, we examine empirical evidence from the public,
highly regulated Norwegian hospital sector and the private, highly
competitive and unregulated California hospital sector to ascertain
whether institutional environment and level of market competition
significantly affect the degree of productive efficiency in hospitals. We
compare and discuss the productive efficiency of four similar sets of
hospitals operating in different institutional and competitive
environments. The four samples are carefully matched in the dimensions of
sample size, hospital size, and average lengths of stay. Heterogeneity in
output definition is used to control for other dimensions (casemix, age
distribution of patients). We use Data Envelopment Analysis (DEA) to
estimate and compare average long-run as well as short-run efficiency
measures across groups. We find that scale and scope regulation of
Norwegian hospitals improves long-run efficiency, primarily due to better
utilization of capital.
Journal: Applied Economics
Pages: 1089-1100
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325255
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325255
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1089-1100
Template-Type: ReDIF-Article 1.0
Author-Name: Rina Bhattacharya
Author-X-Name-First: Rina
Author-X-Name-Last: Bhattacharya
Author-Name: Jane Binner
Author-X-Name-First: Jane
Author-X-Name-Last: Binner
Title: The shocking nature of output fluctuations in some EU countries
Abstract:
Recent literature on optimum currency areas has emphasized the importance
of analysing the nature of the shocks facing the economy when deciding
among alternative exchange rate regimes. In this paper we use a structural
VAR to model the joint behaviour of real output, nominal interest rates,
real interest rates and real money balances in response to four exogenous
disturbances. Identifying restrictions are used so that these disturbances
can be interpreted as supply, money supply, IS and money demand shocks.
The analysis is performed on five major European countries. The principal
objective is to investigate both the relative importance of these shocks
in explaining the variance of output at different time horizons, and the
dynamic response of these economies to each type of shock. Evidence
presented in this paper indicates that the five economies under study have
faced very different types of economic shocks over the recent past. The
implication is that these countries are unlikely to meet the criteria for
an optimum currency area. Unless a convincing case can be made that there
are likely to be substantial economic benefits to offset this loss of a
policy tool, there is a strong economic case for proceeding with monetary
union with extreme caution.
Journal: Applied Economics
Pages: 1101-1125
Issue: 8
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325264
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325264
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Handle: RePEc:taf:applec:v:30:y:1998:i:8:p:1101-1125
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Hine
Author-X-Name-First: Steven
Author-X-Name-Last: Hine
Author-Name: Charles. Bischoff
Author-X-Name-First: Charles.
Author-X-Name-Last: Bischoff
Title: The relevance of unanticipated money growth in explaining output variation
Abstract:
This paper tests a reduced form equation in which real GNP for the United
States is explained by deviations of multi-period M1 growth rates from ex
ante expectations of those rates formed from one to eight quarters
earlier. The theoretical model is suggested by Stanley Fischer's 1977
article, and may be thought of as a 'New Keynesian' model. The equations
are tested in both level and first difference specifications, to allow for
possible unit roots. Empirical results strongly support this model in
preference to 'New Classical' and 'Keynesian' alternatives. Ex ante
expectations or M1 growth are formed from multi-period forecasts made by
Chase Econometrics, Inc., between 1970 and 1979.
Journal: Applied Economics
Pages: 1127-1136
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325020
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1127-1136
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Kadri
Author-X-Name-First: Ali
Author-X-Name-Last: Kadri
Title: Oscillating labour from the West Bank
Abstract:
A three-sector model representative of conditions in the West Bank is
tested using pooled sectoral data. The period of study is chosen to be
relatively stable and it ranges from 1974 to 1988 (post war and beginning
of Intifada). The testing of the labour supply function results in agents
preferring to work in the home economy rather than migrate. The sources of
growth in migrants were detected in a pool of indigent labour for whom the
possibility of employment at home was poor and as such migration became
the alternative by necessity.
Journal: Applied Economics
Pages: 1137-1146
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325039
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1137-1146
Template-Type: ReDIF-Article 1.0
Author-Name: Geoff Kenny
Author-X-Name-First: Geoff
Author-X-Name-Last: Kenny
Author-Name: Donal Mcgettigan
Author-X-Name-First: Donal
Author-X-Name-Last: Mcgettigan
Title: Exchange rates and import prices for a small open economy: the case of Ireland
Abstract:
As a further contribution to the growing international literature on
exchange rate pass-through (PT), this study assesses the extent of PT for
Irish import prices over the period 1963 to 1995. It fills two important
gaps in the literature, by making due allowance for the time series
properties of the data and by concentrating on the case of a small open
economy. In order to assess the extent of PT a mark-up model for aggregate
import unit values is employed. It is argued that the usual single
equation mark-up estimation technique leads to seriously biased and
inefficient estimates of the degree of PT, as it ignores the strong
simultaneity of import prices and domestic competing prices. This study
makes use of the Johansen technique to allow for such simultaneity and
uncovers two long-run equilibrium relationships among the data, for import
unit values and domestic competing prices, and confirms the existence of
very close to full PT for both. Previous results in the literature
demonstrating substantially less than full PT may be due to the failure to
make proper allowance for the time series properties of the data or for
the strong simultaneity which exists between import and domestic competing
prices.
Journal: Applied Economics
Pages: 1147-1155
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325048
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325048
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1147-1155
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Shields
Author-X-Name-First: Michael
Author-X-Name-Last: Shields
Author-Name: Stephen Wheatley Price
Author-X-Name-First: Stephen Wheatley
Author-X-Name-Last: Price
Title: The earnings of male immigrants in England: evidence from the quarterly LFS
Abstract:
In this paper we estimate earnings functions for native born and foreign
born white and non-white males in the English labour market, using data
from the Quarterly Labour Force Survey. We correct for selectivity bias in
the employment decision and control for the nonreporting of wage
information. Importantly, we separate the returns to schooling and to
potential experience received in the country of origin from those obtained
after immigration. Our results highlight the importance of distinguishing
between native born and foreign born males when investigating the labour
market experience of ethnic minorities. Furthermore, the earnings
performance amongst white immigrants varies considerably.
Journal: Applied Economics
Pages: 1157-1168
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325057
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325057
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1157-1168
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Hyde
Author-X-Name-First: Charles
Author-X-Name-Last: Hyde
Author-Name: Jeffrey Perloff
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Perloff
Title: Multimarket market power estimation: the Australian retail meat sector
Abstract:
A new technique for estimating market power in several markets
simultaneously is developed and applied to the Australian retail beef,
lamb, and pork markets. The hypotheses that market power is zero and that
market power is the same for each meat cannot be rejected. Nor is there
evidence that market power increased over the period of analysis. Little
bias is created by examining markets is isolation, rather than within a
system, when markets are competitive, but that bias can be large when
market power exists in some markets in the system.
Journal: Applied Economics
Pages: 1169-1176
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325066
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325066
File-Format: text/html
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1169-1176
Template-Type: ReDIF-Article 1.0
Author-Name: Mary Beth Walker
Author-X-Name-First: Mary Beth
Author-X-Name-Last: Walker
Author-Name: Sally Wallace
Author-X-Name-First: Sally
Author-X-Name-Last: Wallace
Title: The implications of current policies on the production of infant health
Abstract:
This study examines the possible link between the current trend to reduce
availability of abortion services and the incidence of low birthweight
births. Using current data on births and abortions in Atlanta and New York
City, we update and expand the earlier empirical results of Grossman and
Joyce (The Journal of Political Economy, 1990, 98 (5), 98-1007). Using
their latent variable model framework, we find some evidence for the 'cost
of abortion' model, which assumes that increasing the full costs of
abortion will be associated with more low birthweight, hence less healthy,
infants. These results indicate that current trends towards the reduction
of funding for various social services could exacerbate the problem of low
birthweight.
Journal: Applied Economics
Pages: 1177-1186
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325075
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325075
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1177-1186
Template-Type: ReDIF-Article 1.0
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Title: Thedouble-negativeeffect onthe earnings of foreign-born females in Canada
Abstract:
This paper contributes to the debate over immigrant 'quality' by
examining whether or not a double-negative effect on the earnings of
female immigrants exists in Canada. Contrary to popular belief, this study
observes that labour market adjustments occur at a faster rate for female
immigrants than for male immigrants. The results indicate that immigrant
women in Canada suffer from a double-negative effect mainly because of
gender earnings discrimination rather than birthplace discrimination.
Earnings discrimination by birthplace is more pronounced among males than
females. The findings suggest that in evaluating immigrant quality,
researchers should take into account the potential role of labour market
discrimination.
Journal: Applied Economics
Pages: 1187-1201
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325084
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325084
File-Format: text/html
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1187-1201
Template-Type: ReDIF-Article 1.0
Author-Name: David Armstrong
Author-X-Name-First: David
Author-X-Name-Last: Armstrong
Title: Careers guidance, psychometric testing and unemployment amongst young people: an empirical analysis for Northern Ireland
Abstract:
Psychometric tests continue to form an important part of careers guidance
for young people of school leaving age throughout the UK. In the existing
literature, there is little evidence about the impact of testing on
subsequent labour market success. This paper presents a quantitative
analysis of the effect of testing in Northern Ireland on young people's
subsequent experiences of unemployment and long-term unemployment between
the ages of 16 and 18. On account of the sample selection problem,
standard single equation estimates of the effects of testing are likely to
give biased results, and so the bivariate probit model is used in the
estimation. The results suggest that although testing is not having an
adverse impact, it is not having a statistically significant positive
effect. This may be attributable to some aspects of test administration in
Northern Ireland which, in many cases, seems to fall short of recommended
guidelines.
Journal: Applied Economics
Pages: 1203-1217
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325093
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1203-1217
Template-Type: ReDIF-Article 1.0
Author-Name: Ananda Weliwita
Author-X-Name-First: Ananda
Author-X-Name-Last: Weliwita
Author-Name: E. M. Ekanayake
Author-X-Name-First: E. M.
Author-X-Name-Last: Ekanayake
Title: Demand for money in Sri Lanka during the post-1977 period: a cointegration and error correction analysis
Abstract:
This paper investigates the long-run demand for money and short-run
dynamics of the long-run money demand function for Sri Lanka during the
post-1977 period. While M1 is cointegrated with real income, nominal
interest rate, short-term foreign interest rate, and real effective
exchange rate, M2 is not. This suggests that monetary authorities should
emphasize the narrow definition of money for monetary control. The one
year fixed deposits rate is cointegrated with M1, indicating the
opportunity cost of holding money. Although the inflation rate is not
cointegrated with M1, it seems to be an important determinant of the
demand for M1 in the short-run. Results also suggest that the short-term
foreign interest rate and the exchange rate can have important
implications for the effectiveness of monetary policy. Monetary
authorities must consider the response of domestic money demand to these
external factors when formulating future monetary policies.
Journal: Applied Economics
Pages: 1219-1229
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325101
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1219-1229
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Gonzalo
Author-X-Name-First: Maria Teresa
Author-X-Name-Last: Gonzalo
Title: Job exit of men: new job destination versus unemployment destination
Abstract:
Job exit of men over the age of forty is described and analysed using
monthly observations derived from the 1988-89 UK Retirement Survey. A
competing risks model is described and estimated. The results show that
tenure and age determine transitions from a job to a new one, whereas
those transitions from a job to unemployment are also determined by
business cycle variables.
Journal: Applied Economics
Pages: 1231-1238
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325110
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325110
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1231-1238
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Chiarini
Author-X-Name-First: Bruno
Author-X-Name-Last: Chiarini
Title: Cyclicality of real wages and adjustment costs
Abstract:
This paper tackles the issue of the procyclicality of the real wage. We
present a dynamic relationship between real wages and employment
consistent with the long-run stationary equilibrium using a cointegrated
VAR model. We find that wages are anticyclical and that a negative
relationship between real wages and employment is necessary to achieve an
economically identifiable stationary long run solution. The
contentiousness of the topic does not appear so important once we recall
some measurement issues and economic features of the Italian labour
market.
Journal: Applied Economics
Pages: 1239-1250
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325129
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1239-1250
Template-Type: ReDIF-Article 1.0
Author-Name: Mike Smet
Author-X-Name-First: Mike
Author-X-Name-Last: Smet
Author-Name: Walter Nonneman
Author-X-Name-First: Walter
Author-X-Name-Last: Nonneman
Title: Economies of scale and scope in Flemish secondary schools
Abstract:
This study estimates a multiproduct translog cost function for the entire
population of 1011 Flemish secondary schools in order to determine the
degree of ray and product specific (dis)economies of scale as well as the
degree of (dis)economies of scope. Three types of schools and seven major
study fields can be distinguished. Student loads in these study fields are
used as outputs produced by the schools. Evidence is found for ray
economies of scale for the three types of schools, even at output levels
of 300% of the actual means. Although the cost elasticities of six out of
seven outputs are close to zero, most of the values indicating the degree
of product specific economies of scale are negative (suggesting
diseconomies of scale). However, this can be explained by the considerable
scope effects which are incorporated in the definition of the product
specific economies of scale.
Journal: Applied Economics
Pages: 1251-1258
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325138
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1251-1258
Template-Type: ReDIF-Article 1.0
Author-Name: Cynthia Dudzinski
Author-X-Name-First: Cynthia
Author-X-Name-Last: Dudzinski
Author-Name: O. Homer Erekson
Author-X-Name-First: O. Homer
Author-X-Name-Last: Erekson
Author-Name: Andrea Ziegert
Author-X-Name-First: Andrea
Author-X-Name-Last: Ziegert
Title: Estimating an hedonic translog cost function for the home health care industry
Abstract:
Medicare home health care plays an important role in providing cost
effective care for the chronically ill and elderly. Long seen as a cost
effective substitute for nursing home care, home care has become even more
important with expenditures increasing by 31.4% from 1990 to 1996. The
purpose of this paper is to provide a short run cost analysis of a sample
of home health care providers to gain insight into the efficient provision
of home health care services. This paper is a significant improvement over
previous studies in that it uses a nationwide database to more accurately
represent the multiproduct nature of the industry and uses an hedonic
translog cost estimation with desirable economic properties.
Journal: Applied Economics
Pages: 1259-1267
Issue: 9
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325147
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325147
File-Format: text/html
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Handle: RePEc:taf:applec:v:30:y:1998:i:9:p:1259-1267
Template-Type: ReDIF-Article 1.0
Author-Name: A. C. Arize
Author-X-Name-First: A. C.
Author-X-Name-Last: Arize
Author-Name: S. S. Shwiff
Author-X-Name-First: S. S.
Author-X-Name-Last: Shwiff
Title: Does exchange-rate volatility affect import flows in G-7 Countries? Evidence from cointegration models
Abstract:
This paper provides new evidence on the long-run relationship between
imports and exchange-rate volatility in G-7 countries. The period examined
is 1973:2 through 1995:1. Cointegration analyses are based on Johansen's
(1991, 1994) approach and robust single-equation methods of Stock and
Watson (1993) and Phillips and Loretan (1991). In conformity with
theoretical considerations, the results indicate that exchange-rate
volatility has a significant negative effect on the volume of imports of
most G-7 countries whereas for Canada, it is positive and significant.
These findings are reasonably robust in terms of measures of exchange-rate
volatility and different estimation methods.
Journal: Applied Economics
Pages: 1269-1276
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324887
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324887
File-Format: text/html
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1269-1276
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Butler-Smith
Author-X-Name-First: Paul
Author-X-Name-Last: Butler-Smith
Author-Name: Samuel Cameron
Author-X-Name-First: Samuel
Author-X-Name-Last: Cameron
Author-Name: Alan Collins
Author-X-Name-First: Alan
Author-X-Name-Last: Collins
Title: Gender differences in mate search effort: an exploratory economic analysis of personal advertisements
Abstract:
As a logical extension to the microeconomic analysis of human
relationships, this study examines the actual method of mate search, in
particular the use of personal advertisements. Some empirical support is
found for Becker's (1973, 1974) explanations of mating strategy, but in
relation to the level of search effort by gender, the results are not so
clearly in accordance with his thinking.
Journal: Applied Economics
Pages: 1277-1285
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324896
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324896
File-Format: text/html
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1277-1285
Template-Type: ReDIF-Article 1.0
Author-Name: Abul Masih
Author-X-Name-First: Abul
Author-X-Name-Last: Masih
Author-Name: Rumi Masih
Author-X-Name-First: Rumi
Author-X-Name-Last: Masih
Title: A multivariate cointegrated modelling approach in testing temporal causality between energy consumption, real income and prices with an application to two Asian LDCs
Abstract:
Unlike previous studies on the casual relationship between energy
consumption and economic growth, this paper illustrates how the finding of
cointegration(i.e. long-term equilibrium relationship) between these
variables, may be used in testing Granger causality. Based on the most
recent Johansen's multiple cointegration tests preceded by various unit
root or nonstationarity tests, we test for cointegration between total
energy consumption, real income and price level of two Asian LDCs:
Thailand and Sri Lanka. Nonrejection of cointegration between variables
rules out Granger noncausality and implies at least one way of
Granger-causality either unidirectional or bidirectional. Secondly, by
using a dynamic vector error-correction model, we then analyse the
direction of Granger-causation and hence the within-sample
Grangerexogeneity or endogeneity of each of the variables. Thirdly, the
relative strength of the causality is gauged (through the dynamic variance
decomposition technique) by decomposing the total impact of an
unanticipated shock to each of the variables beyond the sample period,
into proportions attributable to shocks in the other variables including
its own, in the multivariate system. Finally, these response paths of
shocks to the system are traced out using impulse response graphs. Results
based on these four tools of methodology, broadly indicate that all three
variables are cointegrated and exhibit two common trends within each
system. Energy consumption seems to be relatively exogenous as neither
income nor prices seems to Granger cause this variable via any of the
channels where potential casuality may occur. Though, energy consumption
itself plays an important role in influencing income and prices by varying
degrees of significance for each country. Overall, shocks to the system
seemed to have had a more sustained if not pronounced effect in Thailand
than in Sri Lanka.
Journal: Applied Economics
Pages: 1287-1298
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324904
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324904
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1287-1298
Template-Type: ReDIF-Article 1.0
Author-Name: Athanasios Noulas
Author-X-Name-First: Athanasios
Author-X-Name-Last: Noulas
Author-Name: Kusum Ketkar
Author-X-Name-First: Kusum
Author-X-Name-Last: Ketkar
Title: Efficient utilization of resources in public schools: a case study of New Jersey
Abstract:
The academic performance of public schools in the United States has been
declining for more than two decades now, and this is a hotly debated topic
since this deterioration in performance has important implications on the
quality of labour and on the productivity growth of the nation (Bishop,
1989). Moreover, the performance among school districts in states varies
significantly, raising questions about the factors contributing to the
large variability in performance. One area where the current debate has
been focused is the ability and quality of the school management to use
the available resources efficiently, giving rise to the issues of a
voucher system and the private management of the public schools. This
study measures the efficiency of public schools for the state of New
Jersey using the data envelopment analysis (DEA) method; it also examines
the effect of certain socio-economic factors on efficiency. We find that
the average efficiency for all schools is 81%. The wealthiest districts
have an efficiency score of 88% while for the neediest districts the
efficiency is 63%. However, when we adjust for socio-economic factors the
difference between the two groups becomes smaller.
Journal: Applied Economics
Pages: 1299-1306
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324913
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324913
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1299-1306
Template-Type: ReDIF-Article 1.0
Author-Name: Sohrab Abizadeh
Author-X-Name-First: Sohrab
Author-X-Name-Last: Abizadeh
Author-Name: Mahmood Yousefi
Author-X-Name-First: Mahmood
Author-X-Name-Last: Yousefi
Title: Deficits and inflation: an open economy model of the United States
Abstract:
The deficit debate is a recurring theme in academic and political
circles. The controversy is over the effect of deficits on inflation and
interest rates. The existing body of empirical evidence does not resolve
the controversy. This paper focuses on the inflationary impact of
deficits. The model used is derived from a comprehensive IS-LM analysis
which incorporates a foreign trade sector and a general price (adoptive
expectation) adjustment mechanism. We test the model using time series
data for the United states. From our results we conclude that NIA deficits
have no significant bearing on the rate of inflation.
Journal: Applied Economics
Pages: 1307-1316
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324922
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324922
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1307-1316
Template-Type: ReDIF-Article 1.0
Author-Name: Fahim Al-Marhubi
Author-X-Name-First: Fahim
Author-X-Name-Last: Al-Marhubi
Title: Cross-country evidence on the link between inflation volatility and growth
Abstract:
It is generally accepted that short-run monetary (mis)management, as
reflected in inflation volatility, affects the long-run growth rate of the
economy. This proposition is tested for a cross-section sample of 78
countries over the period 1965-85. The evidence suggests that, after
controlling for other country-specific growth correlates, high inflation
volatility is associated with lower mean growth. Inflation volatility was
also found to have a negative effect on the productivity of investment,
but does not appear to affect the share of investment of GDP. These
results are also robust to an alternative data set that extends the sample
period to 1994.
Journal: Applied Economics
Pages: 1317-1326
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324931
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324931
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1317-1326
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Peraita
Author-X-Name-First: Carlos
Author-X-Name-Last: Peraita
Author-Name: Manuel Sanchez
Author-X-Name-First: Manuel
Author-X-Name-Last: Sanchez
Title: The effect of family background on children's level of schooling attainment in Spain
Abstract:
This paper provides microeconomic estimates of the role played by family
background in determining children's level of schooling attainment in
Spain. We use an ordered logit model to explore the effects of family
background and other supply factors on the probability of various
educational outcomes. Our estimates are based on household data obtained
from the ECVT, Living and Working Conditions Survey (Ministerio de
Economia y Hacienda, 1985), a Spanish nation-wide household survey
conducted at the end of 1985. In general, and given the Spanish capital
constraints, parental income, social class, and family size, explain
children's level of schooling. These results are consistent with those of
the literature that focuses on the role of family background in
determining schooling attainment.
Journal: Applied Economics
Pages: 1327-1334
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324940
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324940
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1327-1334
Template-Type: ReDIF-Article 1.0
Author-Name: Katharine Wakelin
Author-X-Name-First: Katharine
Author-X-Name-Last: Wakelin
Title: The role of innovation in bilateral OECD trade performance
Abstract:
This paper tests an empirical model of the determinants of bilateral OECD
trade, with particular emphasis on the role of innovation. Variation in
the relationship across countries and sectors is analysed; two innovation
proxies and actual data on innovations are used. A positive relationship
is found between relative innovation and bilateral trade performance at an
aggregate level, and for a number of manufacturing sectors. Sectors are
also categorized as either net users or producers of innovations;
differences in innovation appear to have more of an impact on trade
performance for the net producers of innovations than the net users of
innovations.
Journal: Applied Economics
Pages: 1335-1346
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324959
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324959
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1335-1346
Template-Type: ReDIF-Article 1.0
Author-Name: Sarmistha Pal
Author-X-Name-First: Sarmistha
Author-X-Name-Last: Pal
Title: A limited-dependent analysis of the choice of regular labour contract in seasonal agriculture
Abstract:
The paper examines both theoretically and empirically the factors
determining the demand for regular labour in seasonal agriculture. In an
implicit contract framework it is argued that there are 'hoarding costs'
of regular labour in the slack period when there is not much work to be
done. Consequently, the number of regular labour employed is constrained
by the hoarding cost where larger employment-intensive farms tend to hire
more regular labour. Evidence from the ICRISAT villages in India, too,
show that though the marginal costs of regular labour are zero, there are
significant hoarding costs of regular labour among small farms so that
larger farmers are the major demanders of regular labour. Estimates of the
double-hurdle model jointly determining the probability of hiring regular
labour and demand for regular labour-hours (if a regular labour is hired)
are shown to be an improvement over univariate tobit estimates of the
demand for regular labour-hours only.
Journal: Applied Economics
Pages: 1347-1359
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324968
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324968
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1347-1359
Template-Type: ReDIF-Article 1.0
Author-Name: James Fain
Author-X-Name-First: James
Author-X-Name-Last: Fain
Title: The causes and consequences of occupational segregation: a simultaneous equations approach
Abstract:
Lewis and Shorten (Applied Economics, 1991, 23, 167-77) have proposed
that male and female earnings, male and female labour force participation
rates and occupational segregation are simultaneously determined in the
labour market. They estimate their model for Australia using 1981 Census
data and find substantial evidence to support their hypothesis. However,
there have been no subsequent studies to empirically test their hypothesis
for other countries. In this paper their model for the United States using
1990 Census data is replicated. All but one of the coefficients on the
endogenous variables have the same signs as those reported by Lewis and
Shorten, which tends to support their model. The specification of Lewis
and Shorten's model is tested and it is inappropriate for the US data. The
model is then reformulated and re-estimated. The reformulated model also
shows substantial evidence of simultaneity between occupational
segregation and other labour market outcomes.
Journal: Applied Economics
Pages: 1361-1367
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324977
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324977
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1361-1367
Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Mohanty
Author-X-Name-First: Madhu
Author-X-Name-Last: Mohanty
Title: The role of the desire for union status in the decision to enter local government job queues: the US evidence
Abstract:
Following a two-stage bivariate probit approach, this study estimates
local government and union job queues in a simultaneous equations
framework. By relaxing the restrictive assumption of independence between
the worker's queuing and the employer's hiring decisions, it overcomes a
major limitation of most of the earlier job queue estimates. The results
indicate that the worker's queuing decision for local government jobs in
the United States is determined partly by the desire for unionized
employment. The converse, however, is not true. Seniority with the current
employer emerges as a significant determinant of both workers'queuing and
employers' hiring decisions. Furthermore, local governments act as 'model
employers' by being more likely to hire minorities and females from the
pool of job applicants.
Journal: Applied Economics
Pages: 1369-1378
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324986
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324986
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1369-1378
Template-Type: ReDIF-Article 1.0
Author-Name: Matz Dahlberg
Author-X-Name-First: Matz
Author-X-Name-Last: Dahlberg
Author-Name: Eva Johansson
Author-X-Name-First: Eva
Author-X-Name-Last: Johansson
Title: The revenues-expenditures nexus: panel data evidence from Swedish municipalities
Abstract:
This paper examines the dynamic relationship between local government
revenues and expenditures in Sweden. Results from a panel of 265
municipalities covered over the time period 1974-87 show that (i)
expenditures cause revenues, while revenues do not cause expenditures,
(ii) intergovernmental grants both cause and are caused by expenditures
and revenues, (iii) lags of four years are needed to describe the dynamics
among the fiscal variables and (iv) the parameters of the expenditures
equation are time varying. These results cast doubt on static modeling of
local government activities and on models imposing time invariant
parameters without ever testing for it.
Journal: Applied Economics
Pages: 1379-1386
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324995
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324995
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1379-1386
Template-Type: ReDIF-Article 1.0
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Author-Name: David Greasley
Author-X-Name-First: David
Author-X-Name-Last: Greasley
Title: Vector autoregression, cointegration and causality: testing for causes of the British industrial revolution
Abstract:
The existence, timing, and possible causes of the British industrial
revolution are considered by investigating the time series properties of
industrial production and various explanatory variables. Utilising two
types of robust cointegration-based causality tests we argue that domestic
forces, notably technological progress, shaped the industrial revolution,
whereas overseas trade expansion was mainly a consequence of industrial
growth. Results from Granger-type VAR tests are contrasted with those of
Toda and Phillips (Working paper 91-07, University of Western Australia,
1991b), where the latter manifest some of the potential problems raised by
the authors when applied to a data set of this type. An understanding of
the possible causes of the first industrial revolution may shed more
general light on the forces promoting industrialization and growth. To the
extent that the first industrial revolution offers a template, exports
appear not to provide a simple pathway to industrialization.
Journal: Applied Economics
Pages: 1387-1397
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325002
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1387-1397
Template-Type: ReDIF-Article 1.0
Author-Name: A. Gracia
Author-X-Name-First: A.
Author-X-Name-Last: Gracia
Author-Name: J. M. Gil
Author-X-Name-First: J. M.
Author-X-Name-Last: Gil
Author-Name: A. M. Angulo
Author-X-Name-First: A. M.
Author-X-Name-Last: Angulo
Title: Spanish food demand: a dynamic approach
Abstract:
Other empirical works have demonstrated that Spanish food demand seems to
have a dynamic structure. However, the commonly used dynamization
processes are too restrictive to explain the dynamic food consumers'
behaviour. A more general model that is able to incorporate different
dynamic structures (partial adjustment, first autoregressive, and static)
and allows for direct estimation of long-run coefficients has been used.
This general framework is applied to the Generalized Addilog Demand System
(GADS) for annual Spanish data covering 1964 to 1991. Results indicate
that an autoregressive GADS fits well the data, satisfying the theoretic
restrictions. Finally, the expenditure and price elasticities are
calculated.
Journal: Applied Economics
Pages: 1399-1405
Issue: 10
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498325011
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498325011
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Handle: RePEc:taf:applec:v:30:y:1998:i:10:p:1399-1405
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Witt
Author-X-Name-First: Robert
Author-X-Name-Last: Witt
Author-Name: Alan Clarke
Author-X-Name-First: Alan
Author-X-Name-Last: Clarke
Author-Name: Nigel Fielding
Author-X-Name-First: Nigel
Author-X-Name-Last: Fielding
Title: Common trends and common cycles in regional crime
Abstract:
This paper uses the Vahid and Engle (Journal of Applied Econometrics, 8,
341-360, 1993) common trend - common cycle approach to model the dynamics
of regional crime rates in England over the period 1975-1996. The evidence
indicates the existence of common trends and common cycles in regional
crime rates. This result is exploited to examine the system-wide effects
of shocks emanating in a particular region.
Journal: Applied Economics
Pages: 1407-1412
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324751
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324751
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1407-1412
Template-Type: ReDIF-Article 1.0
Author-Name: Rainer Winkelmann
Author-X-Name-First: Rainer
Author-X-Name-Last: Winkelmann
Author-Name: Klaus Zimmermann
Author-X-Name-First: Klaus
Author-X-Name-Last: Zimmermann
Title: Is job stability declining in Germany? Evidence from count data models
Abstract:
The macro evidence of increased adjustment pressure since the early 1970s
suggests that job mobility should have increased. Hence, retrospective and
spell data from the German Socio-Economic Panel are combined in order to
test the hypothesis that job stability for German workers declined between
1974 and 1994. Using count data regression models in which we control for
labour market experience, various demographic factors, and occupation, we
find that job stability did not decrease, but if anything increased,
between 1974 and 1994. Our finding suggests that labour market
inflexibility is an important factor in explaining the European
unemployment problem.
Journal: Applied Economics
Pages: 1413-1420
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324760
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324760
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1413-1420
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Howells
Author-X-Name-First: Peter
Author-X-Name-Last: Howells
Author-Name: Khaled Hussein
Author-X-Name-First: Khaled
Author-X-Name-Last: Hussein
Title: The demand for broad money in the UK: does credit matter?
Abstract:
Empirical work based on portfolio theories of the demand for money
traditionally treat the quantity of money demanded as the outcome of a
decision to allocate a fixed amount of wealth. By contrast, this paper
argues that people commonly hold money at the same time that they borrow.
Thus changes in gross wealth will cause changes in the quantity of money
people wish to hold. This suggests that empirical work in the demand for
broad money should pay attention to the cost of credit. We estimate the
demand for broad money in the UK (1969Q1-1994Q4) using the recently
developed time-series techniques of DOLS and FPLS. Our findings show that
the cost of credit variables are important determinants of the demand for
real M4 in the UK. In contrast to the recent empirical literature, our
results provide strong evidence for the hypothesis that interest rates
have a short and long term causal impact on real money demand in the UK.
Journal: Applied Economics
Pages: 1421-1429
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324779
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324779
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1421-1429
Template-Type: ReDIF-Article 1.0
Author-Name: I. Luski
Author-X-Name-First: I.
Author-X-Name-Last: Luski
Author-Name: J. Weinblatt
Author-X-Name-First: J.
Author-X-Name-Last: Weinblatt
Title: A dynamic analysis of fiscal pressure and demographic transition
Abstract:
In this paper, the effects of demographic changes, particularly in the
age structure of population, on government social expenditure is
estimated. The results indicate that income elasticity of government
social services is unitary in high income countries and above that level
in low income countries, especially in education and welfare. The paper
attempts also to forecast the pressure of these government outlays in four
distinct countries characterized by different demographic parameters.
Journal: Applied Economics
Pages: 1431-1442
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324788
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324788
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1431-1442
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Maeso-Fernandez
Author-X-Name-First: Francisco
Author-X-Name-Last: Maeso-Fernandez
Title: Econometric methods and purchasing power parity: short- and long-run PPP
Abstract:
This paper defines the different versions of the purchasing power parity
and establishes the existing relationships between them in the light of
econometric techniques. Monthly and annual data for real exchange rates
are studied through a variance ratio test. Unlike other authors, it is
found that there is not explosive behaviour in the real exchange rate when
monthly data are used. Besides, stationarity is easily accepted using
annual data. These results allow to reconcile the two main versions of the
purchasing power parity and also explain why trade imbalances are
persistent but not permanent.
Journal: Applied Economics
Pages: 1443-1457
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324797
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1443-1457
Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Frantzen
Author-X-Name-First: Dirk
Author-X-Name-Last: Frantzen
Title: R&D efforts, international technology spillovers and the evolution of productivity in industrial countries
Abstract:
Equations are presented that relate countries' total factor productivity
to own and to foreign R&D efforts. They are estimated on a panel of annual
time series concerning a set of industrial countries over a period from
the mid-1960s to the early 1990s. Use is made of alternative cointegrating
estimation procedures. The results imply that, whereas domestic R&D
efforts exercise a significant influence on total factor productivity, the
influence of international technology spillovers is, on average, even more
important. A causality analysis confirms that the causation runs in
essence from R&D to productivity rather than the other way around.
Journal: Applied Economics
Pages: 1459-1469
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324805
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1459-1469
Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Mohanty
Author-X-Name-First: Madhu
Author-X-Name-Last: Mohanty
Title: Do US employers discriminate against females when hiring their employees?
Abstract:
Using Johnson's decomposition technique, this paper demonstrates that the
disappearance of the gap between female and male unemployment rates in the
United States during the last decade results partly from a general hiring
policy that is favourable to women workers. This conclusion holds for
workers in five out of eight occupational subsamples considered. The sign
and size of unexplained female - male unemployment rate differential
estimated from 1969, 1977 and 1987 CPS data suggest that hiring
discrimination against females in the US labour market has declined
considerably during the last two decades. The study also supports the
earlier finding that the growth of employment in government and in the
female dominated service sector, and migration of workers from the South
to other regions contribute significantly to the convergence of male and
female unemployment rates in the 1980s.
Journal: Applied Economics
Pages: 1471-1482
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324814
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324814
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1471-1482
Template-Type: ReDIF-Article 1.0
Author-Name: Costas Milas
Author-X-Name-First: Costas
Author-X-Name-Last: Milas
Title: Demand for Greek imports using multivariate cointegration techniques
Abstract:
Starting from a theoretical model with importable, traded and nontraded
goods, we identify a long run relationship among Greek imports, domestic
activity and relative prices. The model supports weak exogeneity of
relative prices which means that Greek importers take the price of imports
as given. The greater than one income elasticity, which persists even when
cyclical demand effects are netted out, means that Greece faces an
external constraint on growth as verified by the negative effect of the
disequilibrium error in the short run output equation. The findings of
this paper suggest that the price of domestic tradeables and nontradeables
are significant determinants of the long run and short run import demand,
while instability in domestic inflation is found to have a strong short
run depressing effect on domestic activity.
Journal: Applied Economics
Pages: 1483-1492
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324823
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1483-1492
Template-Type: ReDIF-Article 1.0
Author-Name: Per Johansson
Author-X-Name-First: Per
Author-X-Name-Last: Johansson
Author-Name: Kurt Brafinnafis
Author-X-Name-First: Kurt
Author-X-Name-Last: Brafinnafis
Title: A household model for work absence
Abstract:
The economic incentives of work absence are empirically studied using a
panel of Swedish blue collar workers, both men and women, that either are
married or living with a spouse as married. A model for the daily absence
decision is derived from standard economic utility theory. An estimable
form for the annual number of absence days is obtained by considering the
data generating process in some detail. The model is estimated, using the
first two moments, with a generalized method of moment estimator. The
panel structure of the data is explicitly considered and a positive
dependence between the number of days absent in the two time periods is
found for females. A 1% increase in the cost will lead to a decrease in
the mean number of days absent by 1.8 and 2.7% for females and males,
respectively.
Journal: Applied Economics
Pages: 1493-1503
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324832
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324832
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1493-1503
Template-Type: ReDIF-Article 1.0
Author-Name: Leighton Vaughan Williams
Author-X-Name-First: Leighton Vaughan
Author-X-Name-Last: Williams
Author-Name: David Paton
Author-X-Name-First: David
Author-X-Name-Last: Paton
Title: Why are some favourite-longshot biases positive and others negative?
Abstract:
Most studies of both pari-mutuel and fixed-odds betting markets have
shown a systematic tendency for the expected return to bets at lower odds
to exceed those at higher odds. Some work, however, has revealed in
certain markets the absence or even reversal of this bias. We present a
model which distinguishes two separate types of bettor, and use this to
demonstrate how transactions costs, the extent of public information, and
consumption benefits of betting can explain the disparities. Our empirical
evidence, taken from a fixed-odds market, lends support to our theoretical
conclusions.
Journal: Applied Economics
Pages: 1505-1510
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324841
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324841
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1505-1510
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Bode
Author-X-Name-First: Ben
Author-X-Name-Last: Bode
Author-Name: Johan Koerts
Author-X-Name-First: Johan
Author-X-Name-Last: Koerts
Author-Name: A. Roy Thurik
Author-X-Name-First: A. Roy
Author-X-Name-Last: Thurik
Title: On the use of disequilibrium models in applied microeconomic research and the value of sample separation information
Abstract:
The use of disequilibrium models in applied microeconomic research is
evaluated. A disequilibrium or switching regime model is used to
explainsales levels of individual retail stores. It is investigated
whether substantial differences are found if an equilibrium approach is
followed instead. Disequilibrium models are known to suffer from the fact
that sample separation is unknown. Usually this information is not
available. Our sample contains explicit information with respect to the
regime to which an observation belongs. Therefore, the value of sample
separation information in estimating the disequilibrium model is
investigated. Finally, Monte Carlo experiments are conducted to get more
insight into these matters.
Journal: Applied Economics
Pages: 1511-1530
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324850
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324850
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1511-1530
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Hildreth
Author-X-Name-First: Andrew
Author-X-Name-Last: Hildreth
Author-Name: Stephen Millard
Author-X-Name-First: Stephen
Author-X-Name-Last: Millard
Author-Name: Dale Mortensen
Author-X-Name-First: Dale
Author-X-Name-Last: Mortensen
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: Wages, work, and unemployment
Abstract:
This paper provides new evidence on unemployment durations for
individuals in Great Britain using a three state Markov framework in a
competing risk setting and a nationally representative data set. The
analysis is based on the premise that an individual's movements between
labour market states can be represented by a Markov process. The modelling
procedure combines the dynamic properties of the search approach to
unemployment while using the labour supply decision at each moment in time
in response to the expected wage to include participation decisions. Using
this framework, we are able to determine the effect of individual
characteristics, including the expected wage, on labour market behaviour.
The model is estimated separately for men and women, and for young and
mature workers, to investigate whether labour market behaviour differs for
these groups. The validity of the Markov assumptions are tested using
different model specifications, and changes in the model over calendar
time are also presented.
Journal: Applied Economics
Pages: 1531-1547
Issue: 11
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324869
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Handle: RePEc:taf:applec:v:30:y:1998:i:11:p:1531-1547
Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Mishra
Author-X-Name-First: Ashok
Author-X-Name-Last: Mishra
Author-Name: Barry Goodwin
Author-X-Name-First: Barry
Author-X-Name-Last: Goodwin
Title: Income risk and allocation of labour time: an empirical investigation
Abstract:
This study investigates the behaviour of risk averse farm operators in
response to farm income and employment variability. Economic theory
maintains that greater farm income variability should increase off-farm
labour supply. On the other hand greater off-farm employment variability
should decrease off-farm labour supply. This effect is confirmed for a
sample of farm operators in North Carolina and Kansas using fixed and
random effects models. Off-farm employment of farm operators is also found
to be significantly influenced by age, efficiency, asset value, and
off-farm wage rate.
Journal: Applied Economics
Pages: 1549-1555
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324634
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324634
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1549-1555
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Garcia
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Garcia
Author-Name: Jose Alberto Molina
Author-X-Name-First: Jose Alberto
Author-X-Name-Last: Molina
Title: Household labour supply with rationing in Spain
Abstract:
This paper provides new empirical evidence on household labour supply
with rationing. To that end, we use the latest Spanish data in order to
estimate three flexible functional forms, namely the NLES, the quadratic
and the Hausman - Ruud forms and calculate the income and wage
elasticities. We find that the number of dependants has a negative effect
on the labour supply of the female. Moreover, the North and the East
Spanish regions have a clearly positive effect on the labour supply of the
female, whilst the North has the same effect on that of the male. The
elasticities of three functional forms are very similar. Male labour
supply is slightly decreasing with the wage, whilst for the female it is
increasing. Leisure is a normal good for both spouses, as expected, whilst
the labour hours are net substitutes.
Journal: Applied Economics
Pages: 1557-1570
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324643
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324643
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1557-1570
Template-Type: ReDIF-Article 1.0
Author-Name: Cynthia Brown
Author-X-Name-First: Cynthia
Author-X-Name-Last: Brown
Author-Name: Jose Pagan
Author-X-Name-First: Jose
Author-X-Name-Last: Pagan
Title: Changes in employment status across demographic groups during the 1990-1991 recession
Abstract:
This study analyses the relative impact of the 1990-91 recession on the
employment status of Mexican-American, other Hispanic, and non-Hispanic
black and white workers in the US. Recession-induced job losses and
changes in shares of parttime and fulltime employment significantly varied
across demographic groups and gender. From 1989 to 1991 males experienced
a larger decline than females in the relative shares of fulltime
employment with Mexican-American and other Hispanic females actually
increasing their shares. Utilizing 1990 and 1992 CPS data, we estimate
bivariate probit models of employment and fulltime/parttime employment
status for each group. These employment and work status probabilities are
then decomposed to analyse the factors that led to the changes. Our study
suggests that the 1990-91 recession-induced labour market changes had the
most detrimental impact on black male and non-Hispanic white female
workers. As such, public policies implemented to mitigate the impact of
economic downturns should take into account the differential impact of
economic recessions on demographic groups.
Journal: Applied Economics
Pages: 1571-1583
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324652
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324652
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1571-1583
Template-Type: ReDIF-Article 1.0
Author-Name: Julius Horvath
Author-X-Name-First: Julius
Author-X-Name-Last: Horvath
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Author-Name: Subhash Sharma
Author-X-Name-First: Subhash
Author-X-Name-Last: Sharma
Title: On the European monetary system: the spillover effects of German shocks and disinflation
Abstract:
We analyse the disinflationary experience between 1979-93 for two
traditionally inflationary countries of the European Monetary System:
France and Italy. For each country, a vector autoregressive model is
estimated. Shocks in the model combine domestic and foreign sources. The
latter capture the world oil price shocks as well as nominal and real
shocks originating in Germany. Under investigation is the hypothesis that
shocks originating in Germany have a spillover disinflationary effect in
France and Italy. The empirical evidence provides support to the validity
of this hypothesis. Furthermore, German shocks account for an important
share of the total price variance in France and Italy. These results
indicate that the interaction between countries of the European Monetary
System has contributed to the success of the disinflationary experiences
of the 1980s. The evidence sheds, therefore, some light on potential
benefits that may be further realized as countries of the European
Monetary System move towards their objective of achieving a single
currency under a united monetary system.
Journal: Applied Economics
Pages: 1585-1593
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324661
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324661
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1585-1593
Template-Type: ReDIF-Article 1.0
Author-Name: David Abler
Author-X-Name-First: David
Author-X-Name-Last: Abler
Author-Name: Jayanta Das
Author-X-Name-First: Jayanta
Author-X-Name-Last: Das
Title: The determinants of the speed of convergence: the case of India
Abstract:
A large number of studies have tested whether per capita incomes are
converging, either conditionally or unconditionally, across countries or
across regions within countries. However, none of them has investigated
the determinants of the speed of convergence when this speed can vary
across economies. This study investigates the determinants of the speed of
convergence across states within India. The results are inconsistent in
several ways with the predictions of the Solow-Swan model. The
Ramsey-Cass-Koopmans model fares better, but there are still some
important inconsistencies.
Journal: Applied Economics
Pages: 1595-1602
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324670
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324670
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1595-1602
Template-Type: ReDIF-Article 1.0
Author-Name: Basim Makhoul
Author-X-Name-First: Basim
Author-X-Name-Last: Makhoul
Author-Name: Samuel Otterstrom
Author-X-Name-First: Samuel
Author-X-Name-Last: Otterstrom
Title: Exploring the accuracy of international trade statistics
Abstract:
This study provides a comprehensive investigation of statistical
discrepancies in generally accepted international trade figures published
by the IMF between 1948 and 1994. We calculated export over- and
underestimation for each country and all of their bilateral trading
partners. By keeping totals for over- and underestimation in separate
categories we avoided the cancellation effect of aggregating positive and
negative discrepancies among partner countries. In general, the results
show a significant improvement in the quality of trade data over time.
However for many countries, relatively large discrepancies still exist
that defy technical explanations, such as the CIF-FOB margins. Also,
because export over- and underestimation coexist for most of the countries
at varying degrees, use of the aggregate sum of the discrepancy might
disguise the actual magnitude of the problem. A significant difference
exists in the relative magnitude and dispersion of trade discrepancies
between OECD countries and non-OECD countries. Trend analysis suggests
that the accuracy of trade data is improving at a faster rate in the
non-OECD than in the OECD countries.
Journal: Applied Economics
Pages: 1603-1616
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324689
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324689
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1603-1616
Template-Type: ReDIF-Article 1.0
Author-Name: John Ashworth
Author-X-Name-First: John
Author-X-Name-Last: Ashworth
Author-Name: Lynne Evans
Author-X-Name-First: Lynne
Author-X-Name-Last: Evans
Title: Functional form of the demand for real balances in Cagan's hyperinflation model
Abstract:
This paper uses recent advances in the development of testable
implications of the Cagan model of hyperinflation. It extends the range of
candidate functional forms of the demand for real balances in
hyperinflations to include nonstandard versions in which the absolute
inflation elasticity is a decreasing function of inflation. These
nonstandard functional forms are of interest because they are known to
have desirable theoretical properties. This paper finds empirical
justification for a nonstandard form that performs at least as well as the
traditional semilogarithmic functional form.
Journal: Applied Economics
Pages: 1617-1623
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324698
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324698
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1617-1623
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Andrikopoulos
Author-X-Name-First: Andreas
Author-X-Name-Last: Andrikopoulos
Author-Name: John Loizides
Author-X-Name-First: John
Author-X-Name-Last: Loizides
Title: Cost structure and productivity growth in European railway systems
Abstract:
The purpose of this paper is threefold: first, to empirically investigate
the coststructure of the railway systems in ten European Countries
(Belgium, Denmark, France, Germany, Greece, Italy, Luxembourg, the
Netherlands, Portugal and the United Kingdom) of the European Union,
second to provide measures of economies (diseconomies) of scale and fully
investigate the manner by which economies of scale have affected the cost
structure of the system and have been affected by the growth in input
prices and technology, and third, to measure economic efficiency and
identify its sources. In achieving this purpose, the translog technology
has been used and the translog model was estimated using time-series data
covering the period 1969-1993. Zellner's iterative method was used in
estimating the translog model.
Journal: Applied Economics
Pages: 1625-1639
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324706
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324706
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1625-1639
Template-Type: ReDIF-Article 1.0
Author-Name: S. M. Dobson
Author-X-Name-First: S. M.
Author-X-Name-Last: Dobson
Author-Name: J. A. Goddard
Author-X-Name-First: J. A.
Author-X-Name-Last: Goddard
Title: Performance and revenue in professional league football: evidence from Granger causality tests
Abstract:
Using a dataset comprising annual performance (measured by final league
position) and gate revenue for 77 Football League clubs which maintained
unbroken league membership between 1946 and 1994, the relationship between
performance and revenue is investigated using cointegration and causality
tests. A cointegrating relationship between performance and revenue is
established in only 10 cases out of 77, although it is argued that some
caution is required in interpreting these results, due to the low power of
the relevant tests in relatively small samples. In Granger causality
tests, more evidence is found of causality running from lagged revenue to
current performance than of causality in the opposite direction, while the
dependence of performance on revenue seems to be greater for the smaller
clubs than for the larger. These results lend empirical support to the
popular view that, unless checked by mechanisms for revenue redistribution
within the league, the natural tendency is for success to become
concentrated increasingly among a small group of elite, wealthy clubs.
Journal: Applied Economics
Pages: 1641-1651
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324715
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324715
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1641-1651
Template-Type: ReDIF-Article 1.0
Author-Name: Marten Palme
Author-X-Name-First: Marten
Author-X-Name-Last: Palme
Author-Name: Robert Wright
Author-X-Name-First: Robert
Author-X-Name-Last: Wright
Title: Changes in the rate of return to education in Sweden: 1968-1991
Abstract:
This paper estimates changes in the rate of return to education in Sweden
between 1968 and 1991. Both the 'quantity' (years of schooling completed)
and 'quality' (highest qualification obtained) dimensions of education are
considered. Adopting a human capital approach, the rate of return is
measured in terms of differences in wage rates associated with differences
in education. Both quadratic wage and cubic spline wage functions are
estimated. The data used are from the 1968, 1981 and 1991 Swedish Level of
Living Surveys.
Journal: Applied Economics
Pages: 1653-1663
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324724
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324724
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1653-1663
Template-Type: ReDIF-Article 1.0
Author-Name: Jarkko Turunen
Author-X-Name-First: Jarkko
Author-X-Name-Last: Turunen
Title: Disaggregated wage curves in the United States: evidence from panel data of young workers
Abstract:
The paper presents wage curve results disaggregated over time, by
individual characteristics, occupations, industries and regions in the
United States, using a panel data set of young workers. The results
suggest that instead of a strong aggregate wage curve there are a number
of different wage curves over time, and for different worker groups. The
slope of the aggregate wage curve varies over time, with the strongest
wage curves in the late 1980s. Wage curves exist for most labour market
groups: the wages of the least educated, Hispanics, those in relatively
low-skill occupations or service industries are most sensitive to changes
in unemployment. Wages of government workers and those in the mining
industry increase with unemployment. Finally, wage curves are steepest in
the western states.
Journal: Applied Economics
Pages: 1665-1677
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324733
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324733
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1665-1677
Template-Type: ReDIF-Article 1.0
Author-Name: William Pedersen
Author-X-Name-First: William
Author-X-Name-Last: Pedersen
Title: Capturing all the information in foreign currency option prices: solving for one versus two implied variables
Abstract:
The information content of option prices has traditionally been expressed
in an implied volatility parameter which is characterized as capturing the
markets expectations about future volatility of the underlying asset.
Researchers normally solve for an implied volatility alone. A more recent
trend has been to solve for both an implied interest rate and standard
deviation simultaneously. This study compares the proficiency of these two
techniques in capturing the information in the market prices of foreign
currency options. The results show that solving for two implied variables
consistently yields less information than solving for an implied
volatility alone. This raises the implication that by trying to reduce one
source of bias by solving for two variables simultaneously, researchers
may be introducing a more serious source of error resulting in a dilution
of the available information.
Journal: Applied Economics
Pages: 1679-1683
Issue: 12
Volume: 30
Year: 1998
X-DOI: 10.1080/000368498324742
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368498324742
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Handle: RePEc:taf:applec:v:30:y:1998:i:12:p:1679-1683
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: Editorial
Abstract:
Journal: Applied Economics
Pages: 1-1
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324499
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324499
File-Format: text/html
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:1-1
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Hansen
Author-X-Name-First: Eric
Author-X-Name-Last: Hansen
Title: A 'pricing-to-market' model with unobserved variables: explaining New Zealand's import prices
Abstract:
A model of 'pricing-to-market' (PTM) behaviour in import prices is
developed for a small open economy to allow for two measurement problems:
(i) that neither the marginal production cost of imported goods nor their
corresponding (foreign-currency) export price are observable by the
econometrician; (ii) that PTM behaviour, if it exists, alters the
relationship between foreign countries' export price indices for total
exports and the true, unobservable price index. The analysis shows that
variations in the measured markup on import prices depends on the degree
to which domestic demand is synchronized with world demand, whether
bilateral exchange rate movements are due to domestic or foreign factors,
and on the degree to which PTM behaviour differs from such behaviour in
other countries. Equations estimated for the price of New Zealand (NZ)
imports from the US strongly supports the model, and finds that the degree
of PTM by US exporters in response to price and exchange rate movements is
substantially greater in NZ than the average for other countries. However,
the degree of PTM in NZ in response to excess demand is similar to that of
other countries.
Journal: Applied Economics
Pages: 3-8
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324507
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324507
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:3-8
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Bailey
Author-X-Name-First: Mark
Author-X-Name-Last: Bailey
Author-Name: Tony Mallier
Author-X-Name-First: Tony
Author-X-Name-Last: Mallier
Title: The summer vacation: influences on the hours students work
Abstract:
The authors look at what determines the number of hours United Kingdom
undergraduate students work in summer vacation employment. This is of
interest because such employment is now, because of the nature of the
United Kingdom Higher Education system, providing an important means of
financing for students. They find the differing personal characteristics
of students do not, either on their own or collectively, exert a
significant influence on the total number of hours individual students
were employed during their summer vacation. This finding would suggest
that students were treated, in the labour market, as a homogeneous group
although the students themselves exercised a degree of self-selection
regarding the decision as to whether to seek full or part-time employment.
A possible explanation for these findings is the similarity of the work
being sought by students during the summer vacation. The authors find no
evidence of a backward bending labour supply curve for students which may
be due to the limited time period students were to spend in the labour
market and the temptation of extra income to offset the need for loans.
Journal: Applied Economics
Pages: 9-15
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324516
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324516
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:9-15
Template-Type: ReDIF-Article 1.0
Author-Name: Nikiforos Laopodis
Author-X-Name-First: Nikiforos
Author-X-Name-Last: Laopodis
Title: Optimal prediction rule: an application to debt reschedulings
Abstract:
This paper develops and tests a new model for assessing country credit
risk and is called Multivariate Cumulative Sum. This model is dynamic in
nature and allows the user to predict early enough a financial distress
that could lead to debt rescheduling. The findings suggest that the model
is capable of detecting potential debt - repayment difficulties as early
as three years in advance. This has serious financing implications, since
the lender can have ample time to re-evaluate his investment opportunities
towards that country and thus avoid or limit a disastrous financial
exposure.
Journal: Applied Economics
Pages: 17-26
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324525
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324525
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:17-26
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Belli
Author-X-Name-First: Pedro
Author-X-Name-Last: Belli
Author-Name: Qaiser Khan
Author-X-Name-First: Qaiser
Author-X-Name-Last: Khan
Author-Name: George Psacharopoulos
Author-X-Name-First: George
Author-X-Name-Last: Psacharopoulos
Title: Assessing a higher education project: a Mauritius feasibility study
Abstract:
The paper presents a cost-benefit analysis of a higher education project
in Mauritius by using the rate of return and net present value methods,
from the individual student and society's point of view. Although there
exists a very rich literature on cost-benefit analysis of an education
sector as a whole, we are not aware of published estimates at the
individual project level. Monte Carlo techniques are used to test the
robustness of the estimates regarding the costs and the benefits
associated with this project. The results show that all programmes
considered are good investments from both the private and the social point
of view, although some programmes are more profitable than others. One
important finding is that the combination of progressive taxation and the
payment of tuition fees by students brings the private and social returns
of this project to equilibrium.
Journal: Applied Economics
Pages: 27-35
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324534
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324534
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:27-35
Template-Type: ReDIF-Article 1.0
Author-Name: Sauwalak Kittiprapas
Author-X-Name-First: Sauwalak
Author-X-Name-Last: Kittiprapas
Author-Name: PHILIP McCANN
Author-X-Name-First: PHILIP
Author-X-Name-Last: McCANN
Title: Industrial location behaviour and regional restructuring within the Fifth 'Tiger' Economy: evidence from the Thai electronics industry
Abstract:
The paper investigates the location behaviour of firms in the electronics
industry in Thailand. Our approach is to use a logit model in order to
analyse how the characteristics of the firms and the regions are related
to the location decisions of firms in these sectors. The logit results
throw some light on the question of the nature of agglomeration behaviour
in a developing economy in which the national spatial industrial structure
is dominated by a single primal city. Our conclusions provide tentative
support for a product-cycle argument of industrial concentration and
dispersion.
Journal: Applied Economics
Pages: 37-51
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324543
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324543
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:37-51
Template-Type: ReDIF-Article 1.0
Author-Name: John Robst
Author-X-Name-First: John
Author-X-Name-Last: Robst
Author-Name: Kathleen Cuson-Graham
Author-X-Name-First: Kathleen
Author-X-Name-Last: Cuson-Graham
Title: The effect of uncertain educational requirements on education and wages
Abstract:
This paper examines the effects of uncertain educational requirements.
The level of education required to enter an occupation varies with a
number of factors. Workers may be uncertain as to their specific job when
selecting an occupation, thus they are also uncertain as to how much
education they will need. We find that occupations with more uncertainty
pay males compensating wages; however females do not receive compensating
wages. We also find a negative relationship between uncertain educational
requirements and completed schooling for both men and women.
Journal: Applied Economics
Pages: 53-63
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324552
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324552
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:53-63
Template-Type: ReDIF-Article 1.0
Author-Name: Livio Di Matteo
Author-X-Name-First: Livio Di
Author-X-Name-Last: Matteo
Title: Using alternative methods to estimate the determinants of cross-border trips
Abstract:
The relationship between quarterly same day automobile trips by Canadians
to the United States and the real exchange rate over the period 1979 - 95
is estimated using the parametric technique Ordinary Least Squares (OLS)
and the nonparametric technique Locally Weighted Scatterplot Smoothing
(LOWESS). The results suggest that there are important differences in the
estimates generated across the two techniques. The nonparametric approach
generates an inverse J-curve relationship between the two variables which
implies that linear OLS estimates can yield substantial under-and
overestimates of the dependent variable as the real exchange rate varies.
This can have implications for applied researchers attempting to estimate
models of tourism demand for forecasting purposes. At the very least, the
nonparametric approach can help suggest a more flexible parametric
functional form for multivariate regression that better reflects the data.
Journal: Applied Economics
Pages: 77-88
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324570
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324570
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:77-88
Template-Type: ReDIF-Article 1.0
Author-Name: Eugene Kouassi
Author-X-Name-First: Eugene
Author-X-Name-Last: Kouassi
Author-Name: Bernard Decaluwe
Author-X-Name-First: Bernard
Author-X-Name-Last: Decaluwe
Author-Name: Crispin Kapombe
Author-X-Name-First: Crispin
Author-X-Name-Last: Kapombe
Author-Name: Dale Colyer
Author-X-Name-First: Dale
Author-X-Name-Last: Colyer
Title: Temporal causality and the dynamic interactions between terms of trade and current account deficits in co-integrated VAR processes: further evidence from Ivorian time series
Abstract:
This paper investigates the relationship between the terms of trade and
current account deficits within a context of VECM. The results indicate
that for the Coted'Ivoire there is a long-run relationship between the
terms of trade and current account deficits. They also indicate that
current account deficits in Cote-d'Ivoire cannot be explained by the terms
of trade. A strong unidirectional relationship exists between current
account deficits and the terms of trade since the first one Granger causes
the second. Finally, dynamic simulations have indicated that a significant
portion of fluctuations in the terms of trade is explained by current
account deficits. In light of these findings, it can be concluded that
economic policy in Cote-d'Ivoire should be carried out with extreme
caution due to the nature of international commodity markets, the
mechanism of the terms of trade's formation, and the relative exogeneity
of current account deficits.
Journal: Applied Economics
Pages: 89-96
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324589
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324589
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:89-96
Template-Type: ReDIF-Article 1.0
Author-Name: Rasha Torstensson
Author-X-Name-First: Rasha
Author-X-Name-Last: Torstensson
Title: Growth, knowledge transfer and European integration
Abstract:
It has been suggested that members in the EC or the EFTA experienced
significantly higher growth rates compared to nonmember countries. This
suggests that the European integration either captures omitted variables
or that it gives rise to increased growth rates through enhanced
investment and/or increased knowledge transfer. The present study attempts
to resolve this issue. The analysis identifies a two-link chain between
European integration (EI) and growth through investment. In addition, on
examining whether there are any knowledge spillovers resulting from
integration it is found that integrated countries do in fact experience
more knowledge spillovers compared to nonintegrated countries. Employing
both the neoclassical and endogenous growth approaches, it is found that
trade variables are especially important for growth in Total Factor
Productivity (TFP). The study is undertaken for a panel sample consisting
of 20 OECD countries and covering three time periods between 1976 and
1990. Special emphasis is placed on specification and sensitivity
analysis.
Journal: Applied Economics
Pages: 97-106
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324598
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324598
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:97-106
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Hoster
Author-X-Name-First: Frank
Author-X-Name-Last: Hoster
Title: Effects of a European electricity market on the German electricity industry: results from a simulation model of the European power systems
Abstract:
The introduction of an European common market for electricity and the
opening of the power markets to eastern Europe and Scandinavia will have a
drastic and lasting effect on the structure of the German electricity
industry. This paper presents an evaluation of the possible effects of a
single market especially on the power trade within Europe and the German
power plant system. One special aspect is the investigation, whether a
flooding of the German electricity market with French nuclear power could
happen. Scenario simulations reject the argumentation that a European
common market for electricity would lead to a dramatic increase in
international electricity trade.
Journal: Applied Economics
Pages: 107-122
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324606
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324606
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:107-122
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Bender
Author-X-Name-First: Keith
Author-X-Name-Last: Bender
Author-Name: Peter Sloane
Author-X-Name-First: Peter
Author-X-Name-Last: Sloane
Title: Trade union membership, tenure and the level of job insecurity
Abstract:
Recently there have been suggestions that job insecurity is on the
increase. Two factors which may explain this are the reduced role of the
trade unions and increasing flexibility in the labour market with an
associated reduction in the proportion of workers in permanent fulltime
employment. For the first time the relationship between trade union
membership, tenure and the workers perception of job insecurity is
examined using British data (drawn from the 1986/7 Social Change and
Economic Life Initiative). Econometric evidence supports in part the view
that while job insecurity encourages workers to join trade unions, overall
trade unions tend to increase job security and also suggests that there is
a strong relationship between tenure and job insecurity.
Journal: Applied Economics
Pages: 123-135
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324615
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324615
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:123-135
Template-Type: ReDIF-Article 1.0
Author-Name: Kare Johansen
Author-X-Name-First: Kare
Author-X-Name-Last: Johansen
Title: Insider forces in wage determination: new evidence for Norwegian industries
Abstract:
Using panel data for Norwegian industries, we establish a significant
permanent relation between industry wages and industry profitability. The
estimated long-run insider weight is above 0.2 and stable both over time
and across industries. Industry wages are significantly affected by
aggregate unemployment, and the preferred wage equation implies a highly
convex wage curve.
Journal: Applied Economics
Pages: 137-147
Issue: 1
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324624
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324624
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Handle: RePEc:taf:applec:v:31:y:1999:i:1:p:137-147
Template-Type: ReDIF-Article 1.0
Author-Name: Rumi Masih
Author-X-Name-First: Rumi
Author-X-Name-Last: Masih
Title: An empirical analysis of the demand for commercial television advertising
Abstract:
The purpose of this paper is to provide an empirical analysis of the
demand for commercial television advertising in the Sydney metropolitan
market as a case study using unpublished quarterly data. Though the focus
of the paper is empirical in nature, prior to this a simple oligopolistic
framework is used to examine the influence of competition on TV
advertising prices. Particular attention is paid to justifying the use of
both short-and long-run time-series modelling techniques in order to
derive respective short-and long-run price elasticities of demand. Results
seem to suggest that the price elasticity of demand is robust in terms of
theoretical expectation in sign and statistical significance, but
substantially less than unity in the short run, and neighbouring unity in
the long-run. These results seem to be consistent with the findings of
Cave and Swann (Report of Committee on Financing the BBC, 1986) and
Tavakoli, Swann and Cave (mimeo, Brunel University, 1989) for the British
TV market, but differ from those of Hendry (Journal of Policy Modeling 14
(3), 1992) who estimated much larger elasticities for the same market.
Without digressing into welfare implications, we also discuss what
implications our results would have for the TV industry if policy
initiatives likely to expand advertising supply on commercial TV were
implemented.
Journal: Applied Economics
Pages: 149-163
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324381
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324381
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:149-163
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Chow
Author-X-Name-First: Peter
Author-X-Name-Last: Chow
Author-Name: Mitchell Kellman Yochanan
Author-X-Name-First: Mitchell Kellman
Author-X-Name-Last: Yochanan
Title: A test of the Linder hypothesis in Pacific NIC trade 1965-1990
Abstract:
This paper examines the degree to which the taste similarity (Linder)
hypothesis explains trade patterns between the 'Four Tigers' East Asian
New Industrial Countries (NICs), and their major OECD markets (and
suppliers). The tests cover the period 1965-90, during which trade between
these countries expanded at unprecedented rates. The tests employ an
extensive disaggregated data set including all manufactured exports from
the East Asian NICs to various major OECD markets. A new measure of trade
intensity is employed, thus correcting a potentially critical bias
affecting previous studies in this area. The results tend to support the
applicability of the taste - differential (Linder) model as an important
explainer of the changing pattern of trade for this sample of trade
partners. The findings are generally consistent with other intertemporal
studies (which 'neutralize' spatial effects on trade, such as Kennedy, T.
and McHugh, R., Southern Economic Journal, 46 (3), 898-903, 1980); and
support Hanink, D. (Weltwirtschaftliches Archiv, 126 (2), 257-67, 1990)
hypothesis that the Linder hypothesis may provide a relatively good
explanation of trade for countries above some per capita income threshold,
and for Linder's original (An Essay on Trade and Transformation, John
Wiley, New York, 1961), and Grey, H.P.'s (Weltwirtschaftliches Archiv, 116
(3), 447-70, 1980) suggestion that the hypothesis should prove especially
applicable for trade in differentiated products.
Journal: Applied Economics
Pages: 175-182
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324408
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324408
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:175-182
Template-Type: ReDIF-Article 1.0
Author-Name: Alfonso Alba-Ramirez
Author-X-Name-First: Alfonso
Author-X-Name-Last: Alba-Ramirez
Title: Explaining the transitions out of unemployment in Spain: the effect of unemployment insurance
Abstract:
A multinomial logit model and matched files from the Spanish Active
Population Survey (EPA) are used to study transitions out of unemployment
among men aged 20-59. In addition to demographic characteristics, other
explanatory variables included in the regressions pertain to previous job
characteristics and the spell of unemployment. In this article, special
attention is paid to the impact of unemployment insurance benefits on the
re-employment probability. Consistent with previous work, it is found that
receipt of unemployment insurance is associated with lower probabilities
of re-employment and of withdrawal from the labour force. More
importantly, a differential effect of benefit receipt is obtained when
comparing time periods before and after 1992. Indeed, in April of that
year the labour authority made eligibility requirements for unemployment
insurance more restrictive and curtailed benefit amounts.
Journal: Applied Economics
Pages: 183-193
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324417
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324417
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:183-193
Template-Type: ReDIF-Article 1.0
Author-Name: Victor M. Gonzalo Angulo
Author-X-Name-First: Victor M. Gonzalo
Author-X-Name-Last: Angulo
Title: A structural VARMA approach to modelling the money supply process
Abstract:
A conceptual framework for research on the money supply process is
presented and illustrated with empirical multivariate time series analyses
of the Spanish case in monthly data from 1964 to 1990. Existing
behavioural distinctions between monetary authority, private banking and
private nonbanking sectors are employed, and these are formulated within a
general, linear, nonexplosive, invertible multivariate stochastic process
for the components of money multipliers. Behavioural distinctions are thus
drawn directly in a very general, though empirically accessible, dynamic
and stochastic framework. Identification hypotheses are suggested,
allowing for a usable behavioural interpretation. The illustrative
empirical work for the Spanish case reveals various directions in which
the theoretical generality is relevant in practice.
Journal: Applied Economics
Pages: 195-206
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324426
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324426
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:195-206
Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Endoh
Author-X-Name-First: Masahiro
Author-X-Name-Last: Endoh
Title: Trade creation and trade diversion in the EEC, the LAFTA and the CMEA: 1960-1994
Abstract:
In a simplified version of the gravity model, appropriate dummy variables
have been introduced to analyse the effects of both trade creation and
trade diversion by three economic organizations, the European Economic
Community (EEC), the Latin American Free Trade Association (LAFTA) and the
Council of Mutual Economic Assistance (CMEA), for the period 1960-94.
Five-year intervals are the main subject of measurement. The results show
that both trade creation dummies and trade diversion dummies have
statistically significant coefficients, which show the appropriateness of
this new approach. The trade creation effect and trade diversion effect of
each institution are proved to be generally weakening during the 1990s. It
is also observed that each Organization has a distinctive international
trade character. For Japanese trade, a similar approach is used to analyse
nonaligned trade by Japan, with particular interest in the effects of
these three institutions on trade with Japan. The result is that there is
no strong evidence that the EEC and the LAFTA trade with Japan any more or
less than the hypothetical level predicted by basic explanatory variables,
while the CMEA increased its trade with Japan up to the hypothetical level
during the analysis period.
Journal: Applied Economics
Pages: 207-216
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324435
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324435
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:207-216
Template-Type: ReDIF-Article 1.0
Author-Name: Jayachandran Variyam
Author-X-Name-First: Jayachandran
Author-X-Name-Last: Variyam
Author-Name: James Blaylock
Author-X-Name-First: James
Author-X-Name-Last: Blaylock
Author-Name: David Smallwood
Author-X-Name-First: David
Author-X-Name-Last: Smallwood
Title: Information, endogeneity, and consumer health behaviour: application to dietary intakes
Abstract:
Due to heightened public health interest, a growing number of consumer
health behaviour studies are focusing on the effect of health information
on the demand for health inputs and outcomes. Many of these studies,
however, have overlooked the potential endogeneity of information
variables stemming from unobserved individual heterogeneity. Due to
simultaneity bias, ignoring endogeneity may lead to inaccurate estimates
of informational effects on health behaviour. Using dietary intake data
for fat, saturated fat, cholesterol, and fibre, this paper illustrates the
pitfalls of treating health information related to these nutrients as
exogenous variables in their demand equations. In most of the estimated
models, the exogeneity of information is statistically rejected. When the
information variables are treated as exogenous variables, their effects on
dietary intakes are underestimated. The estimated effects of key intake
determinants such as income, education, ethnicity, and race are also
different in such a specification compared to a specification which treats
information variables as endogenous. Implications for nutrition education
policies are discussed.
Journal: Applied Economics
Pages: 217-226
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324444
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:217-226
Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Karras
Author-X-Name-First: Georgios
Author-X-Name-Last: Karras
Author-Name: Houston Stokes
Author-X-Name-First: Houston
Author-X-Name-Last: Stokes
Title: On the asymmetric effects of money-supply shocks: international evidence from a panel of OECD countries
Abstract:
We examine whether the asymmetric effect of money on output is an
international phenomenon, and investigate the reasons for this asymmetry.
Quarterly data from the 1963-93 period for a panel of twelve OECD
countries strongly support asymmetry internationally: negative
money-supply shocks are shown to have a stronger effect on output than
positive shocks. Our methodology also enables us to distinguish between
two sets of theories consistent with the output asymmetries: a convex
aggregate supply and a credit view. We find that the effects of money on
prices are generally symmetric, which may be consistent with both sets of
theories being operative at once.
Journal: Applied Economics
Pages: 227-235
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324453
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324453
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:227-235
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dur
Author-X-Name-First: Robert
Author-X-Name-Last: Dur
Title: Mismatch between unemployment and vacancies in the Dutch labour market
Abstract:
We analyse the importance of educational mismatch between vacancies and
unemployment in the Dutch labour market. Using unemployment and vacancy
data by educational level, we estimate a matching function which
incorporates the effect of educational mismatch on the aggregate flow of
filled vacancies. Using the estimated parameters, we calculate how much of
total unemployment can be attributed to educational mismatch. The results
indicate that educational mismatch is not an important determinant of
unemployment in the Netherlands. Moreover, it shows a remarkable trend.
Contrary to common belief, the relative importance of mismatch appears to
have strongly decreased since the end of the 1960s.
Journal: Applied Economics
Pages: 237-244
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324462
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324462
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:237-244
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Antonio Alonso
Author-X-Name-First: Jose Antonio
Author-X-Name-Last: Alonso
Title: Growth and the external constraint: lessons from the Spanish case
Abstract:
The present article attempts to determine the role played by the
balance-of-payments constraint on economic growth in Spain (1960-94),
using cointegration techniques. This empirical exercise also serves to
reveal some shortcomings in the usual procedures for estimating
Thirlwall's Law. In particular, the Spanish case reveals how important it
is to introduce a variable that expresses the competitiveness gains
generated by improvements in quality of the goods and services into the
export function. It also demonstrates the inadequate simplification
entailed in an a priori exclusion of relative prices in external
equilibrium equation. Not taking these two aspects into consideration may
give rise to an erroneous confirmation of Thirlwall's Law, especially if,
as in the Spanish case, both effects offset each other. Finally, if the
aim is to analyse long-term relationships between variables, it would seem
advisable to use procedures, such as cointegration, with variables in
levels.
Journal: Applied Economics
Pages: 245-253
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324471
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324471
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:245-253
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow
Author-X-Name-First: Michael
Author-X-Name-Last: Marlow
Author-Name: Alden Shiers
Author-X-Name-First: Alden
Author-X-Name-Last: Shiers
Title: Do law enforcement expenditures crowd-out public education expenditures?
Abstract:
As state and local governments have devoted a rising share of their
resources to crime-related programmes, concerns have arisen that spending
on other programmes such as education will fall. Coupled with growing
public concerns over performance of the public education system, and
expectations that prison populations will rise as states pass and enforce
more stringent sentencing laws, it is not surprising that some view the
expansion of crime-related programmes as troublesome. One hypothesis is
that education and crime-related programmes directly compete for
government expenditures so that what one programme gains the other must
lose as in a fixed-pie situation. A competing hypothesis is that spending
on these two public programmes are unrelated and therefore higher
crime-related spending may also lead to higher taxes or public debt
issuance, or to reduction in spending on programmes other than education.
We estimate a three equation model of spending on crime-related
programmes, spending on education, and the crime rate from which we
directly test whether spending on crime and education influence each
other.
Journal: Applied Economics
Pages: 255-266
Issue: 2
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324480
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324480
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Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:255-266
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Winker
Author-X-Name-First: Peter
Author-X-Name-Last: Winker
Title: Sluggish adjustment of interest rates and credit rationing: an application of unit root testing and error correction modelling
Abstract:
A model with credit rationing due to asymmetric information is combined
with a marginal cost pricing approach to bank behaviour. The resulting
model allows for explanation of the adjustment of deposit and loan rates
to changes of the money market rate and is estimated in error correction
form. Johansen's procedure is used to test the hypotheses. The hypothesis
that deposit and loan rates do not adapt immediately to changes in the
money market rate cannot be rejected based on German monthly data. The
observation that loan rates react even slower than deposit rates can be
rationalized by the effects of asymmetric information.
Journal: Applied Economics
Pages: 267-277
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324255
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324255
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:267-277
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: Alternative identifying restrictions in a model of UK real output and prices
Abstract:
This paper presents some simulation results for a small Structural Vector
Autoregression model of the interaction between real output and prices for
the UK economy. The model is estimated using quarterly data over the
period 1966:2 to 1995:4. The effects of alternative identifying
restrictions on the simulation properties of the model are considered and
it is shown that the restriction of long run neutrality of real output
with respect to demand shocks has a major impact. Even if long run
neutrality is not imposed the results still indicate that most of the
variance of real output over long forecasting horizons can be attributed
to supply side disturbances. The model is used to analyse the role of
demand and supply disturbances in explaining the three major recessions of
the period and it is shown that each of these exhibits unique
characteristics.
Journal: Applied Economics
Pages: 279-286
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324264
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324264
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:279-286
Template-Type: ReDIF-Article 1.0
Author-Name: Rickardo Brunton
Author-X-Name-First: Rickardo
Author-X-Name-Last: Brunton
Author-Name: W. Robert
Author-X-Name-First: W.
Author-X-Name-Last: Robert
Author-Name: J. Alexander
Author-X-Name-First: J.
Author-X-Name-Last: Alexander
Title: Aggregate investment in New Zealand pre-and post-restructuring
Abstract:
The New Zealand economy has undergone a good deal of micro-economic and
macro-economic reform in pursuit of higher economic growth. Investment is
one of very few variables robustly associated with growth. We develop an
eclectic model of investment demand and apply it to New Zealand data,
concluding that, since restructuring began in 1984, the variables change
in income and change in the real after-tax interest rate have become
positively associated with investment.
Journal: Applied Economics
Pages: 287-292
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324273
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324273
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:287-292
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Huguet Roig
Author-X-Name-First: Ana Huguet
Author-X-Name-Last: Roig
Title: Testing Spanish labour market segmentation: an unknown-regime approach
Abstract:
This paper studies the existence of two differentiated segments, primary
and secondary, in the Spanish labour market. For this, a methodology
(switching regression model with unknown regimes) is used which, on the
one hand, does not demand a priori demarcation of segments and on the
other, enables the allocation of workers to the segments to be treated as
a factor endogenous to the model itself and closely connected with the
wage-setting mechanisms operating in the segments. The empirical results
show that the assignment to segments is not random and that there are
substantial differences in the wage determination process between the two
sectors. Furthermore, the model estimated has allowed analysis of the
ex-post composition of the segments and corroboration, to a large extent,
of the predictions of the dual labour market theory.
Journal: Applied Economics
Pages: 293-305
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324282
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324282
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:293-305
Template-Type: ReDIF-Article 1.0
Author-Name: Sunil Kanwar
Author-X-Name-First: Sunil
Author-X-Name-Last: Kanwar
Title: Does risk matter? The case of wage-labour allocation by owner-cultivators
Abstract:
This study analyses the impact of revenue risk on the hiring-out
behaviour of owner-cultivators. Since hiring-out is not certain, labour
market risk is also allowed for. A large sample of owner-cultivators
residing in semi-arid regions in India, and hence subject to high
production and labour market risks, is used for this purpose. It is found
that, possibly because production risks carry forward into the local
labour market, households are unable to use the labour market as a hedge
against production risk. We also find that labour force participation is
positively affected by increases in the real wage rate, a result that is
contrary to the findings of earlier studies using data from less developed
agriculture. Several other insights also result.
Journal: Applied Economics
Pages: 307-317
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324291
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:307-317
Template-Type: ReDIF-Article 1.0
Author-Name: Monica Giulietti
Author-X-Name-First: Monica
Author-X-Name-Last: Giulietti
Title: Price discrimination in grocery trade: evidence from Italy
Abstract:
This paper investigates the determinants of price dispersion between
staple and non-staple goods in grocery retailing, as the result of pricing
decisions by multiproduct firms. Theoretical predictions about the nature
of supermarkets' pricing behaviour are compared and tested empirically
using disaggregated data from the Italian grocery trade over the period
1990 - 1992. The empirical results provide evidence for the existence, in
all types of retail organization, of the form of price discrimination
suggested by Bliss particularly for specialist shops. The results are
consistent with discrimination due to the exploitation of consumers'
switching costs.
Journal: Applied Economics
Pages: 319-329
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324309
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324309
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:319-329
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Title: Customer return policies for experience goods: the impact of product price and consumer search costs on seller-provided informational cues
Abstract:
The present article provides an extension of previous theoretical
arguments regarding customer return policies for experience goods. Logit
regressions presented here suggest the importance of the 'full cost' to
consumers of a purchase mistake, as proxied by experience goods prices and
the time costs to consumers associated with search, in the seller's
decision to produce information in advertisements regarding return
policies. The evidence points out that sellers do respond in their
decisions to produce information in a manner that reduces the total cost
of voluntary exchange and maximizes seller profits.
Journal: Applied Economics
Pages: 331-336
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324318
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324318
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:331-336
Template-Type: ReDIF-Article 1.0
Author-Name: Bill Woodland
Author-X-Name-First: Bill
Author-X-Name-Last: Woodland
Author-Name: Linda Woodland
Author-X-Name-First: Linda
Author-X-Name-Last: Woodland
Title: Expected utility, skewness, and the baseball betting market
Abstract:
A subjective expected utility model is developed to explain the gambling
behaviour of bettors on Major League Baseball games in the United States.
Betting activity was examined over 15 seasons, for the period 1978 - 1992.
The observed overbetting of favourite teams by baseball bettors can be
reconciled without abandoning the traditional assumption of risk aversion.
Additionally, there is some evidence to suggest that positive skewness has
a discernible influence in the decision-making process for higher odds
contests.
Journal: Applied Economics
Pages: 337-345
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324327
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324327
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:337-345
Template-Type: ReDIF-Article 1.0
Author-Name: Joe Tharakan
Author-X-Name-First: Joe
Author-X-Name-Last: Tharakan
Title: Economic growth and exchange rate uncertainty
Abstract:
Recent research carried out within the framework of endogenous growth
theory has confirmed the positive impact of the openness of an economy on
its economic growth. This paper extends that line of investigation further
and analyses the effect of exchange rate uncertainty (ERU) on growth.
First, it is shown theoretically how ERU can adversely affect the
endogenous growth process. Exchange rate uncertainty is then quantified
for 21 OECD countries. Finally, panel regressions which use the above
measures of ERU together with other determinants are carried out to
explain the growth rates of the above group of countries. Results show
that exchange rate uncertainty has a negative impact on long-term growth.
Journal: Applied Economics
Pages: 347-358
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324336
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324336
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:347-358
Template-Type: ReDIF-Article 1.0
Author-Name: Jacques Silber
Author-X-Name-First: Jacques
Author-X-Name-Last: Silber
Author-Name: Michal Weber
Author-X-Name-First: Michal
Author-X-Name-Last: Weber
Title: Labour market discrimination: are there significant differences between the various decomposition procedures?
Abstract:
Economists have usually called the proportion of the average wage gap
between two groups which could not be explained by individual
characteristics 'discrimination'. Recently, several theories have
suggested that labour market discrimination, on the one hand, lowers the
wages of the 'minority' group, and on the other, leads to higher pay for
the 'majority' group. In a recent survey of the various methods used to
decompose the overall wage differential between two groups, Oaxaca and
Ransom compared five approaches in the contexts of race and gender
discrimination. This paper checks whether there are significant
differences between the various decomposition procedures which have
appeared in the literature. The tests are based on bootstrap techniques.
Journal: Applied Economics
Pages: 359-365
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324345
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324345
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:359-365
Template-Type: ReDIF-Article 1.0
Author-Name: Kuo Huang
Author-X-Name-First: Kuo
Author-X-Name-Last: Huang
Title: Effects of food prices and consumer income on nutrient availability
Abstract:
Economic factors such as food prices and consumer income affect food
choices with consequences for the availability of nutrients. A new
research model is developed to estimate how the availability of 28
nutrients would change as consumers alter their food purchases in response
to changes in food prices and income through the interdependent food
demand relationships.
Journal: Applied Economics
Pages: 367-380
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324354
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:367-380
Template-Type: ReDIF-Article 1.0
Author-Name: Asatoshi Maeshiro
Author-X-Name-First: Asatoshi
Author-X-Name-Last: Maeshiro
Title: A lagged dependent variable, autocorrelated disturbances, and unit root tests - peculiar OLS bias properties - a pedagogical note
Abstract:
The paper provides applied econometricians with a useful insight into the
interaction between lagged dependent variables and autocorrelated
disturbances. More specifically, the paper explains heuristically why, how
and when the bias of the OLS estimator of the coefficient of a lagged
dependent variable can be smaller when the disturbances are autocorrelated
than when they are NID. It also explains why and how the powers and sizes
of some of the unit root tests are distorted by AR(1) and MA(1)
disturbances. The results should be of interest to applied econometricians
using vector autoregressive or error-correction models as well.
Journal: Applied Economics
Pages: 381-396
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324363
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324363
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:381-396
Template-Type: ReDIF-Article 1.0
Author-Name: Hyeon-Seung Huh
Author-X-Name-First: Hyeon-Seung
Author-X-Name-Last: Huh
Title: How well does the Mundell-Fleming model fit Australian data since the collapse of Bretton Woods?
Abstract:
Australian time series for the nominal interest rate, real output, the
nominal exchange rate, prices and nominal money since 1973 are
characterized by a vector autoregressive process driven by five exogenous
disturbances. Those disturbances are identified so that they can be
interpreted as the five main sources of fluctuations found in the Mundell
- Fleming model of a small open economy under flexible exchange rates,
namely: world interest rate, aggregate supply, IS, money supply and money
demand shocks. The dynamic responses of the estimated model to the
structural shocks are analysed and shown to match most of the predictions
of the Mundell - Fleming model.
Journal: Applied Economics
Pages: 397-407
Issue: 3
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324372
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324372
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Handle: RePEc:taf:applec:v:31:y:1999:i:3:p:397-407
Template-Type: ReDIF-Article 1.0
Author-Name: Deborah Haas-Wilson
Author-X-Name-First: Deborah
Author-X-Name-Last: Haas-Wilson
Author-Name: Kristen Lindberg
Author-X-Name-First: Kristen
Author-X-Name-Last: Lindberg
Title: Regulation and the optimal size and type of abortion provider
Abstract:
Between 1973 (the year the Supreme Court ruled in Roe v. Wade that women
have the right to decide whether or not to terminate their pregnancies)
and 1982, the number of abortion providers increased by 81 per cent.
However, between 1982 and 1992, a period of increasing state-level
abortion regulation, the number of abortion providers decreased by 18 per
cent. We know very little about the factors that influence the willingness
and ability of hospitals, clinics, and physicians to provide abortion
services over time. Based on state data from 1978 to 1992, the results of
this paper suggest that large abortion providers are better able to
compete and survive in the market. Also clinics and physicians' offices
appear to be gaining market share relative to hospitals. Further, this
paper includes analysis of the impact of state-level Medicaid funding
regulations on the number, size, and type of abortion provider. These
results have important implications for women's access to abortion
services and thus have important implications for infant and maternal
health.
Journal: Applied Economics
Pages: 409-415
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324110
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324110
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:409-415
Template-Type: ReDIF-Article 1.0
Author-Name: Mickael Lothgren
Author-X-Name-First: Mickael
Author-X-Name-Last: Lothgren
Author-Name: Magnus Tambour
Author-X-Name-First: Magnus
Author-X-Name-Last: Tambour
Title: Bootstrapping the data envelopment analysis Malmquist productivity index
Abstract:
This paper presents a bootstrap approach to calculate confidence
intervals for firm-specific Malmquist productivity indices obtained from
data envelopment analysis (DEA) models. The bootstrap is easily
implemented and allows identification of production units that have
significant productivity changes. An application using data from Swedish
eye-care departments is included. We find that 40% of departments have
significant progress in productivity whereas only 10% of the departments
have a significant regress in productivity. This differs from the original
results where about half the sample have estimates of progress and the
other half have estimates of regress in productivity.
Journal: Applied Economics
Pages: 417-425
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324129
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:417-425
Template-Type: ReDIF-Article 1.0
Author-Name: David Ansic
Author-X-Name-First: David
Author-X-Name-Last: Ansic
Author-Name: Geoffrey Pugh
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Pugh
Title: An experimental test of trade hysteresis: market exit and entry decisions in the presence of sunk costs and exchange rate uncertainty
Abstract:
In the 1980s, the unresponsiveness of trade flows to exchange rate swings
inspired models in which sunk costs in combination with exchange rate
instability generate trade hysteresis, meaning that temporary exchange
rate misalignments have a persistent effect on trade. This paper furnishes
an empirical complement to the theoretical literature. First, it describes
a computerized experiment in which 100 subjects generated over 1000
decisions on market entry and exit under conditions congruent with a model
of trade hysteresis developed by Paul Krugman. Secondly, these data are
used to test the main predictions arising from the model. Our experiment
bears out the main qualitative predictions of Krugman's model; in
particular, that firms' trading policy is unresponsive to exchange rate
movements over a wide range of values. Moreover, in the repeated-decision
setting of the experiment, we find evidence that the stochastic behaviour
of subjects' entry- and exit-price decisions tend towards consensus as
they gain experience, even though they do not interact with one another
during the experiment. This effect, which is not predicted in Krugman's
model, supports the supposition that behaviour at the firm level in the
presence of sunk costs and exchange rate uncertainty is a plausible
microeconomic foundation for otherwise puzzling macroeconomic phenomena.
Journal: Applied Economics
Pages: 427-436
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324138
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:427-436
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Jaforullah
Author-X-Name-First: Mohammad
Author-X-Name-Last: Jaforullah
Title: Production technology, elasticity of substitution and technical efficiency of the handloom textile industry of Bangladesh
Abstract:
A number of translog and Cobb-Douglas frontier production models were
estimated for the Bangladesh handloom textile industry to investigate its
production technology and technical efficiency in production. It was found
that the technical efficiency of the industry in producing cloth was only
41%. It was concluded that the industry might improve its technical
efficiency by increasing its male/female labour ratio and yarn/capital
ratio and decreasing its hired/family labour ratio and labour/capital
ratio. The production technology of the industry was found to be
characterized by a linearly homogeneous Cobb-Douglas function. The
elasticity of substitution between labour and capital for the industry was
found to be unity.
Journal: Applied Economics
Pages: 437-442
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324147
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324147
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:437-442
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Bishop
Author-X-Name-First: Paul
Author-X-Name-Last: Bishop
Author-Name: Nick Wiseman
Author-X-Name-First: Nick
Author-X-Name-Last: Wiseman
Title: External ownership and innovation in the United Kingdom
Abstract:
This paper examines the impact of ownership and a variety of other
variables on the likelihood of innovation and the presence of an R&D
function within a national sample of UK defence related firms. It is shown
that foreign ownership has a negative indirect impact upon innovation.
Mixed support is found for the Schumpeterian approach to innovation.
Involvement in export markets, technological opportunity and R&D
collaboration are shown to have a positive impact on innovation.
Journal: Applied Economics
Pages: 443-450
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324156
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324156
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:443-450
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Harris
Author-X-Name-First: Richard
Author-X-Name-Last: Harris
Title: The determinants of work-related training in Britain in 1995 and the implications of employer size
Abstract:
This study uses a familiar set of variables to characterize the
determinants of training (based around individual characteristics,
qualifications, and workplace characteristics). However, it goes further
by using data drawn from a recent quarter of the UK Labour Force Survey,
and thus contains an up-to-date and extensive set of core variables. The
dependent variable used covers three subgroups: those who have never been
offered training by their current employer; those who have been offered
but did not receive training in the last three months; and those workers
who received training within the last three months. The hypothesis that
large employers not only provide more work-related training, but that they
are also more willing to train workers with characteristics that indicate
a lower probability of obtaining a return on any investment outlay, is
tested. This was confirmed (especially for male workers), along with a
range of results that mostly accord with previous studies into the
determinants of UK employer-based training.
Journal: Applied Economics
Pages: 451-463
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324165
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324165
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:451-463
Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Dutta
Author-X-Name-First: Dilip
Author-X-Name-Last: Dutta
Author-Name: Nasiruddin Ahmed
Author-X-Name-First: Nasiruddin
Author-X-Name-Last: Ahmed
Title: An aggregate import demand function for Bangladesh: a cointegration approach
Abstract:
This paper investigates the existence of a long-run aggregate merchandise
import demand function for Bangladesh during the period 1974 - 94. The
cointegration and error correction modelling approaches have been applied.
Empirical results suggest that there exists a unique long-run or
equilibrium relationship among real quantitities of imports, real import
prices, real GDP and real foreign exchange reserves. The dynamic behaviour
of import demand has been investigated by estimating two types of error
correction models, in which the error correction terms have been found
significant. In model I, real import prices and real GDP (lagged one year)
and in model II, real import prices, real GDP (lagged one year), real
imports (lagged one quarter) and a dummy variable capturing the effects of
import liberalization policies have all emerged as important determinants
of import demand function. The error correction models have also been
found to be robust as they satisfy almost all relevant diagnostic tests.
Journal: Applied Economics
Pages: 465-472
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324174
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324174
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:465-472
Template-Type: ReDIF-Article 1.0
Author-Name: Shabbar Jaffry
Author-X-Name-First: Shabbar
Author-X-Name-Last: Jaffry
Author-Name: Sean Pascoe
Author-X-Name-First: Sean
Author-X-Name-Last: Pascoe
Author-Name: Catherine Robinson
Author-X-Name-First: Catherine
Author-X-Name-Last: Robinson
Title: Long run price flexibilities for high valued UK fish species: a cointegration systems approach
Abstract:
In this paper, the own and cross-price flexibilities for four high valued
species (bass, lobster, sole and turbot) landed in the UK are estimated.
System of equation models were developed using the vector error correction
model (VECM) approach. Johansen's multivariate approach was used to obtain
estimates of the long run steady state relationship (vectors) between fish
prices and landings. To find unique vectors (i.e. no interdependent
vectors) zero restrictions on the coefficients of the price variables were
applied so that the model effectively contained quantity independent
variables only. The resulting vectors were four unique cointegration long
run relationships of monthly fish prices and landings. Various tests
suggested that the variables were I (1) nonstationary variables. The model
also suggested that there are more than one cointegration vectors
(relationships) between the variables. It was found that bass has the
largest absolute long run own price flexibility. Bass and lobster were
found to be weak substitutes while sole and turbot were found to be
substitutes. The results suggest, however, that the relationship is not
symmetrical, with the quantity of sole having a greater effect on the
price of turbot than turbot on sole.
Journal: Applied Economics
Pages: 473-481
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324183
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324183
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:473-481
Template-Type: ReDIF-Article 1.0
Author-Name: Luca Stanca
Author-X-Name-First: Luca
Author-X-Name-Last: Stanca
Title: Asymmetries and nonlinearities in Italian macroeconomic fluctuations
Abstract:
This paper reports the results of an empirical investigation of business
cycle asymmetries in the Italian economy. Macroeconomic time series, both
annual post-Unity and quarterly post-world war II, are subjected to
nonlinearity and asymmetry tests. The dynamics of recessions and
expansions are then modelled with threshold autoregressive and
Markov-switching models. The paper shows that allowing for two regimes is
sufficient to account for the finding of neglected nonlinearity. The
results indicate that business cycle asymmetries can provide both an
intuitive economic interpretation and a parsimonious representation of
nonlinearities in macroeconomic time series.
Journal: Applied Economics
Pages: 483-491
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324192
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324192
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:483-491
Template-Type: ReDIF-Article 1.0
Author-Name: Andy Kwan
Author-X-Name-First: Andy
Author-X-Name-Last: Kwan
Author-Name: John Cotsomitis
Author-X-Name-First: John
Author-X-Name-Last: Cotsomitis
Author-Name: Benjamin Kwok
Author-X-Name-First: Benjamin
Author-X-Name-Last: Kwok
Title: Exports, economic growth and structural invariance: evidence from some Asian NICs
Abstract:
In this paper we use the exogeneity techniques developed by Engle and
Hendry (Journal of Econometrics, 1993, 56, pp. 119-39) and data from three
Asian NICs to test the invariance assumption of the export-led growth
hypothesis.
Journal: Applied Economics
Pages: 493-498
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324200
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324200
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:493-498
Template-Type: ReDIF-Article 1.0
Author-Name: David Greasley
Author-X-Name-First: David
Author-X-Name-Last: Greasley
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Title: International evidence on shock persistence: structural change, nonlinearities and subsample robustness
Abstract:
Testing for unit roots and the related issue of measuring shock
persistence has attracted considerable theoretical and applied econometric
interest. The issue of the size of the random walk component raised by
Cochrane (Journal of Political Economy, 96, 893-920, 1988) has been
extended in the work of other authors. Leung (Economics Letters, 40,
435-44, 1992), in particular, considers the effects of structural breaks
on measures of persistence. In this paper we consider new results for the
effects of structural change, nonlinearities and subsample robustness on
spectral-based measures of persistence illustrating the potential problems
via an updated and extended version of the Cogley (Journal of Political
Economy, 98, 501-18, 1990) data set. We find that significant structural
breaks exist in the majority of the series investigated. Furthermore,
measured persistence differs markedly across distinct periods with the
assumption of common growth rates over very long periods leading on
occasions to potentially erroneous conclusions on the degree of
persistence. Nonlinearities measured by the significance of time squared
(TSQ), seem important in many cases, particularly post-World War Two
(WW2), potentially explaining the apparently high levels of post-WW2
persistence. The paper concludes with a warning on the use of measures of
persistence when the data include structural change and/or nonlinearities,
highlighting the importance of the correct choice for breakpoints and
second sub-sample start points.
Journal: Applied Economics
Pages: 499-507
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324219
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324219
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:499-507
Template-Type: ReDIF-Article 1.0
Author-Name: Christis Tombazos
Author-X-Name-First: Christis
Author-X-Name-Last: Tombazos
Title: The role of imports in expanding the demand gap between skilled and unskilled labour in the US
Abstract:
A unit cost function is employed, in the context of the production theory
approach, to estimate the Allen - Uzawa effect of aggregate imports on
skilled and unskilled labour in the US. The model corrects for two
ubiquitous shortcomings of similar studies: (i) their disregard for the
role of nonmanufactured imports, including imports of services, in
domestic production, and (ii) their inability to capture, in addition to
the conventional domestic-output-substitution effects of the
Stolper-Samuelson variety, the impact of imports on the demand for primary
factors that is generated via domestic factor-using downstream processes.
To circumvent curvature related problems, often associated with similar
studies that do not invoke separability, we combine the global imposition
of concavity with a symmetric normalized quadratic representation of the
unit cost function (that remains flexible after curvature enforcing
reparametrizations). The results confirm the notion that imports hurt
unskilled labour. However, they also reveal a previously ignored positive
impact of aggregate imports on the demand for skilled labour that is
qualitatively independent of the measure of skill employed. This result is
attributed to skill intensive downstream processes of aggregate imports
and reaffirms the importance of 'downstream handling' in stimulating
labour demand first identified by Aw and Roberts (Review of Economics and
Statistics, 67, 109-17, 1985).
Journal: Applied Economics
Pages: 509-516
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324228
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:509-516
Template-Type: ReDIF-Article 1.0
Author-Name: Omer Ozcicek
Author-X-Name-First: Omer
Author-X-Name-Last: Ozcicek
Author-Name: W. DOUGLAS McMILLIN
Author-X-Name-First: W. DOUGLAS
Author-X-Name-Last: McMILLIN
Title: Lag length selection in vector autoregressive models: symmetric and asymmetric lags
Abstract:
This study used Monte Carlo simulations to study the performance of
alternative lag selection criterion for symmetric lag and asymmetric lag
vector autoregressive models. Lag models with short lags and with long
lags were considered. The alternative criteria considered were the AIC,
SIC, Phillips' Posterior Information Criterion, and Keating's modification
of the AIC and SIC. The alternative criteria were evaluated by computing
the frequency distribution of lags selected, by computing the
out-of-sample forecasting performance of models with lags selected using
each criterion, and by comparing the ability of models with lags selected
using each criterion to mimic the 'true' impulse response functions for
the lag model.
Journal: Applied Economics
Pages: 517-524
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324237
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324237
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:517-524
Template-Type: ReDIF-Article 1.0
Author-Name: Urvashi Dhawan
Author-X-Name-First: Urvashi
Author-X-Name-Last: Dhawan
Author-Name: Bagala Biswal
Author-X-Name-First: Bagala
Author-X-Name-Last: Biswal
Title: Re-examining export-led growth hypothesis: a multivariate cointegration analysis for India
Abstract:
This paper re-examines the export-led-growth (ELG) hypothesis using a
vector autoregressive (VAR) model by considering the relationship between
real GDP, real exports and terms of trade for India during the period
1961-93. In re-examining the ELG hypothesis, this study, perhaps for the
first time, employs a multivariate framework using Johansen's model
selection and maximum likelihood cointegration procedure. The results
sugest that there is one long-run equilibrium relationship among the three
variables, and the causal relationship flows from the growth in GDP and
terms of trade to the growth in exports. The causality from exports to GDP
appears to be a short run phenomenon, suggesting that the recent export
promotion strategies adopted in India have the potential of bearing growth
in the future.
Journal: Applied Economics
Pages: 525-530
Issue: 4
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324246
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324246
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Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:525-530
Template-Type: ReDIF-Article 1.0
Author-Name: John Wells
Author-X-Name-First: John
Author-X-Name-Last: Wells
Title: Seasonality, leading indicators, and alternative business cycle theories
Abstract:
Rolling regressions and Granger causality tests are used to examine the
predictive ability of seasonally adjusted and unadjusted leading economic
indicators for the US economy. Many of the unadjusted variables perform
better than their adjusted counterparts, but asymmetric behaviour is also
evident. Alternative leading indicators such as the bond spread and the
Fed Funds rate do not predict cycles as well as real money balances.
Unadjusted real business failure liabilities and business formation also
appear to perform well.
Journal: Applied Economics
Pages: 531-538
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323986
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323986
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:531-538
Template-Type: ReDIF-Article 1.0
Author-Name: Tikva Lecker
Author-X-Name-First: Tikva
Author-X-Name-Last: Lecker
Author-Name: Yochanan Shachmurove
Author-X-Name-First: Yochanan
Author-X-Name-Last: Shachmurove
Title: Immigration and socioeconomic gaps: theory and applications
Abstract:
During the first decade of Israel's existence large waves of immigrants
came from Europe and the Middle East. This paper introduces an empirical
study which compares the occupational socioeconomic score differentials
between ethnic groups within and outside the kibbutz. The three groups
examined are from Asia and Africa, from Europe and America, and the
native-born population. It is found that the occupational socioeconomic
score differentials after migration are lower in the kibbutz than outside
it and that socioeconomic gaps outside the kibbutz increase after
migration. In this paper, a model is presented which explains the
empirical results. It compares the effects of migration inside the
kibbutz, organized as a labour-managed firm, with the effects of migration
inside the city, assumed to be organized as a perfectly competitive firm.
The model also develops a gap function that quantifies the socioeconomic
gaps and uses iso-gap curves to compare the premigration and postmigration
gaps.
Journal: Applied Economics
Pages: 539-549
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323995
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323995
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:539-549
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Buchmueller
Author-X-Name-First: Thomas
Author-X-Name-Last: Buchmueller
Title: Fringe benefits and the demand for part-time workers
Abstract:
In the US, tax code nondiscrimination rules and other institutional
constraints require employers to offer the same fringe benefits to all
full-time workers, but allow them to deny benefits to part-time workers.
As a result, firms that offer generous fringe benefits to higher skill
workers have an incentive to hire lower skill workers on a part-time or
contingent basis. This paper uses cross-section establishment data to
investigate the effect of employer-provided fringe benefits on the demand
for part-time workers. The results indicate that firms that offer more
generous fringe benefits make greater use of low wage part-time workers;
there is no significant relationship between fringe benefits and the
proportion of high wage workers employed part-time.
Journal: Applied Economics
Pages: 551-563
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324002
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:551-563
Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Parra Frutos
Author-X-Name-First: Isabel Parra
Author-X-Name-Last: Frutos
Author-Name: Joaquin Aranda Gallego
Author-X-Name-First: Joaquin Aranda
Author-X-Name-Last: Gallego
Title: Multiproduct monopoly: a queueing approach
Abstract:
Using queuing theory to model traditional market structures can provide
interesting insights into the underlying mechanisms. Many characteristics
of markets are well known, but queuing models often illustrate these in a
novel manner. A stochastic model of multiproduct monopoly with impatient
consumers is developed. The model explicitly allows for congestion
effects. A monopoly that offers two services distinguished only by a time
element, that is, where two distinct service rates apply is considered.
Two different classes of consumer are considered according to their
waiting time tolerances. Given assumptions about dynamic consumer choice
behaviour, queuing theory techniques are used to derive market share and
effective demand details, for each class of consumer, in terms of the
firm's pricing, quality, and processing speed policy. Economic analysis is
performed allowing for the possibility of offering a reward when the
consumer has to face a long queue. The economic summary provided forms the
basis of a subsequent sensitivity analysis.
Journal: Applied Economics
Pages: 565-576
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324011
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324011
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:565-576
Template-Type: ReDIF-Article 1.0
Author-Name: Jorn Rattso
Author-X-Name-First: Jorn
Author-X-Name-Last: Rattso
Title: Aggregate local public sector investment and shocks: Norway 1946 - 1990
Abstract:
Local public sector investment is determined in an environment of
shifting economic conditions. Investments are investigated using an
intertemporal decision model allowing for tests of forward looking
behaviour and adjustments to expected and unexpected shocks. The
econometric analysis of the aggregate local public sector over the period
1946-1990 indicates that local and county governments are forward looking
and have small adjustment costs to investment. In a full investment demand
model, only unexpected changes of gross domestic product and unemployment
are shown to be important in the short run. The central government has
arranged stable revenue growth of the local public sector, but greater
volatility in macroeconomic conditions has led to fluctuations in local
public investment.
Journal: Applied Economics
Pages: 577-584
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324020
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:577-584
Template-Type: ReDIF-Article 1.0
Author-Name: Geraint Johnes
Author-X-Name-First: Geraint
Author-X-Name-Last: Johnes
Title: Schooling, fertility and the labour market experience of married women
Abstract:
A model of career path choice is constructed for a sample of women taken
from the 1991 US National Household Education Survey. This allows for
simultaneity and selection effects in the relationship between regime
choice and earning. It is established that, inter alia, expected earnings
have a significant impact on the career path and the hours of work chosen
by American women. The role played by formal schooling and by childrearing
in the determination of carrier path is highlighted, and implications are
discussed.
Journal: Applied Economics
Pages: 585-592
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324039
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:585-592
Template-Type: ReDIF-Article 1.0
Author-Name: J. Colin
Author-X-Name-First: J.
Author-X-Name-Last: Colin
Author-Name: H. Jones
Author-X-Name-First: H.
Author-X-Name-Last: Jones
Author-Name: Serge Nadeau
Author-X-Name-First: Serge
Author-X-Name-Last: Nadeau
Author-Name: William Walsh
Author-X-Name-First: William
Author-X-Name-Last: Walsh
Title: Ethnicity, productivity and salary: player compensation and discrimination in the National Hockey League
Abstract:
The paper considers the impact of potential minority (Francophone,
American, European) ethnic (language, culture) discrimination on salary
determination in the National Hockey League. Using player salary data for
the 1989/90 season, a regression model of salary determination is
constructed which includes variables measuring productivity (skills),
market structure, and allows for several ethnic influences including
minority discrimination, ethnically shaped consumer preferences and
reservation wages. The basic conclusion is that wages are principally
determined by productivity and market structure, and the only evidence of
discrimination is found in the ethnically influenced consumer preference
of American, as opposed to Canadian, teams.
Journal: Applied Economics
Pages: 593-608
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324048
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324048
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:593-608
Template-Type: ReDIF-Article 1.0
Author-Name: A. W. Dnes
Author-X-Name-First: A. W.
Author-X-Name-Last: Dnes
Author-Name: J. S. Seaton
Author-X-Name-First: J. S.
Author-X-Name-Last: Seaton
Title: The regulation of electricity: results from an event study
Abstract:
In this paper, event-study methods are used to compare the stock-market
returns for the RECs with general stock-market returns to test the
hypothesis that the regulatory package shows symptoms of capture by
special interest groups over the 1991-95 period. The results show that
some capture by the RECs may have occurred as they have earned abnormal
market returns. However, regulatory events are heterogeneous in nature and
actions taken over prices by the Director General of Electricity Supply
(DGES) in 1995 appear to have reduced abnormal returns. As part of the
study, we examine the impact on shareholders' returns of the DGES's
controversial announcement in March 1995 of plans to tighten price
controls on the RECs. The regulatory package appears to work reasonably
well on balance.
Journal: Applied Economics
Pages: 609-618
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324057
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324057
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:609-618
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Papatheodorou
Author-X-Name-First: Andreas
Author-X-Name-Last: Papatheodorou
Title: The demand for international tourism in the Mediterranean region
Abstract:
The paper studies the demand for international tourism, in the
Mediterranean region. First a review of the most important attempts to
model econometrically the demand for international tourism in the past is
given, followed by a formal presentation of the proposed theoretical
model. In particular, a version of the Almost Ideal Demand System (AIDS)
is adopted and a description of the variables involved and their sources,
together with the estimation procedure, are provided. The diagrammatic
analysis performed contributes to a better understanding of the evolution
of the dependent variable over time. The results with respect to the
expenditure as well as to the own- and cross-price elasticities may be
regarded as econometrically satisfactory and a reasonable economic
explanation is given.
Journal: Applied Economics
Pages: 619-630
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324066
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324066
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:619-630
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Lukacs
Author-X-Name-First: Peter
Author-X-Name-Last: Lukacs
Title: Vertical integration, input contracts and the margins - concentration relationship
Abstract:
In recent years it has become common when specifying empirical price cost
margins to use net output as opposed to the more usual gross output in the
denominator. It has been noted that with gross output as the denominator
the point estimate on concentration from a regression of margins on
concentration is lower than with net output as the denominator and the
estimate is frequently insignificant. The possible explanations that have
been put forward to explain this empirical phenomenon are discussed and
evidence is presented using data from the UK Census of Production and the
UK Input Output tables. Neither theoretical nor empirical justification is
found for the use of the adjusted margin but instead, it is suggested that
the empirical phenomenon is caused by the omission of appropriate
variables to control for contracting relations in purchasing intermediate
inputs.
Journal: Applied Economics
Pages: 631-640
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324075
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324075
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:631-640
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony De Francesco
Author-X-Name-First: Anthony
Author-X-Name-Last: De Francesco
Title: The relationship between unemployment and vacancies in Australia
Abstract:
The paper addresses the existence of an equilibrium
unemployment-vacancies (UV) relationship in Australia. Cointegration test
results suggest that no bivariate long-run (UV) relationship exists.
Moreover, this finding fails to support the basic model of labour job
search. However, a modified Beveridge Curve is proposed where it is found
that a number of trivariate equilibrium relationships exist between
unemployment, vacancies and one other variable; the replacement ratio, the
proportion of long-term unemployed or the real wage. The existence of an
equilibrium relationship in the multivariate framework is due to the
endogenous modelling of the (un)employment flows which are assumed to be
exogenous in the bivariate framework of the Beveridge Curve.
Journal: Applied Economics
Pages: 641-652
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324084
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324084
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:641-652
Template-Type: ReDIF-Article 1.0
Author-Name: S. Necmi
Author-X-Name-First: S.
Author-X-Name-Last: Necmi
Title: Kaldor's growth analysis revisited
Abstract:
Kaldor's 'laws' on 'manufacturing as the engine of growth' have been
tested using cross-country data, mainly from developing countries, for the
period 1960-1994. Instrumental variable techniques were used to explore
problems associated with simultaneity and spuriousness. It has been found
that manufacturing output growth rate is exogenous as Kaldor envisaged and
his 'laws' are applicable to most of the developing world.
Journal: Applied Economics
Pages: 653-660
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324093
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:653-660
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Otero
Author-X-Name-First: Jesus
Author-X-Name-Last: Otero
Title: The real exchange rate in Colombia: an analysis using multivariate cointegration
Abstract:
Johansen's analysis of cointegrated systems is used to build a model of
the Colombian real exchange rate (RER). One cointegrating vector is found,
which can be thought of as a long-run RER equation. The deviations of the
RER from its long-run equilibrium relationship, after correcting for
short-run dynamics, are interpreted as a measure of RER misalignment. The
simulation performance of the model during the period of estimation and
three years into the future is particularly good, with the simulated RER
reproducing the long-run behaviour of the actual series.
Journal: Applied Economics
Pages: 661-671
Issue: 5
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499324101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324101
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Handle: RePEc:taf:applec:v:31:y:1999:i:5:p:661-671
Template-Type: ReDIF-Article 1.0
Author-Name: Kari Heimonen
Author-X-Name-First: Kari
Author-X-Name-Last: Heimonen
Title: Stationarity of the European real exchange rates-evidence from panel data
Abstract:
This paper employs a panel unit root test for the real exchange rates of
13 EU member countries. The estimation period covers the EMS period from
1980:1 to 1992:2 In contrast with the earlier panel unit root studies
concerning purchasing power parity (PPP), effective real exchange rates
are used. As a result, the non-stationarity of the real exchange rate was
rejected. However, the half-life of the real exchange rate adjustment
turned out to be long. Potential reasons for this might be the relatively
short estimation period and the nature of the data.
Journal: Applied Economics
Pages: 673-677
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323887
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323887
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:673-677
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Stone
Author-X-Name-First: Eric
Author-X-Name-Last: Stone
Author-Name: Ronald Warren
Author-X-Name-First: Ronald
Author-X-Name-Last: Warren
Title: Customer discrimination in professional basketball: evidence from the trading-card market
Abstract:
This paper presents evidence on the existence of customer racial
discrimination in professional basketball from recent prices for the
trading cards of former players in the National Basketball Association.
Data were collected on the 258 active roster players in the NBA during the
1976-77 season, 133 of whom had cards issued that year. Maximum-likelihood
estimation of a card-price equation is carried out, accounting both for
the nonrandom selection of the players for whom cards exist and for
left-censoring of the dependent variable. Overall, the empirical results
suggest the absence of customer racial discrimination in the pricing of
basketball trading cards. However, there is some evidence that the effect
of career length on trading-card prices is lower for whites than for
blacks, and that the card-price premium for players who subsequently
coached in the NBA is lower for blacks than for whites.
Journal: Applied Economics
Pages: 679-685
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323896
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323896
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:679-685
Template-Type: ReDIF-Article 1.0
Author-Name: Khosrow Doroodian
Author-X-Name-First: Khosrow
Author-X-Name-Last: Doroodian
Author-Name: Chulho Jung
Author-X-Name-First: Chulho
Author-X-Name-Last: Jung
Author-Name: Roy Boyd
Author-X-Name-First: Roy
Author-X-Name-Last: Boyd
Title: The J-curve effect and US agricultural and industrial trade
Abstract:
This paper examines the J-curve hypothesis for US agricultural and
manufactured goods, using the Shiller lag model. The results support the
J-curve effect for agricultural goods, but not for manufactured goods.
These findings explain why many studies in the literature fail to support
the J-curve phenomenon. There are two explanations for these findings: (1)
the aggregation bias of data that combine both agricultural and
manufactured goods and (2) the country under study is often an industrial
nation like the US or Japan with a high proportion of manufactured goods
in both exports and imports.
Journal: Applied Economics
Pages: 687-695
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323904
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323904
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:687-695
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Lucke
Author-X-Name-First: Bernd
Author-X-Name-Last: Lucke
Title: Expansionary fiscal contractions and equilibrium indeterminacy: a case study for Germany
Abstract:
On several occasions, the 1980s witnessed non-Keynesian effects of fiscal
contractions. Most notably, cuts in government spending in Ireland,
Denmark and Germany are known to have coincided with increases in private
consumption spending. Self-fulfilling expectations about the effects of
stabilization policies may explain these and a diversity of opposing
experiences. This paper formulates a dynamic stochastic equilibrium model
with equilibrium indeterminacy, which allows for sunspot fluctuations as
well as for systematic consumption effects of government policy in either
direction. Cointegration tests and Euler equation estimates suggest that
the model is approximately in accord with German data. Parameter estimates
imply that the non-Keynesian experiences are not due to self-fulfilling
expectations but to the productivity effects of government-provided
infrastructure services.
Journal: Applied Economics
Pages: 697-708
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323913
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323913
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:697-708
Template-Type: ReDIF-Article 1.0
Author-Name: Georges Menahem
Author-X-Name-First: Georges
Author-X-Name-Last: Menahem
Title: A target level of risk model of respiratory pathologies and smoking behaviour
Abstract:
Levels of morbidity and healthcare utilization related to respiratory
pathologies are correlated, first, with an indicator of the level of risk
that individuals are prepared to take, namely their 'individual target
level of risk', and then secondly with smoking behaviour. The results
based on a French survey with a sample of 13 150 individuals show that
higher target levels of risk are associated with a higher probability of
being ill, with higher levels of tobacco consumption but with lower levels
of consumption of preventive medicine. More generally, this article shows
how a target level of risk model can be formalized in an economic
optimizing approach.
Journal: Applied Economics
Pages: 709-722
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323922
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323922
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:709-722
Template-Type: ReDIF-Article 1.0
Author-Name: David Prescott
Author-X-Name-First: David
Author-X-Name-Last: Prescott
Author-Name: Bo Wandschneider
Author-X-Name-First: Bo
Author-X-Name-Last: Wandschneider
Title: Public/private sector wage differentials in Canada-evidence from the 1991 and 1982 surveys of consumer finance
Abstract:
This paper extends the work of Gunderson and Shapiro and Stelcner that
considered wage differentials between public and private sector workers in
Canada using the 1971 and 1981 Censuses, respectively. Here the Survey of
Consumer Finances from 1991 and 1982 is used, which allows for better
distinction between public and private sector workers. The estimated
public sector premium is decomposed into an endowments component and a
residual term. Estimates are corrected for sample selection bias with
respect to the choice between full-time and part-time work in the two
sectors. Tests for bias caused by self-selection into the private and
public sectors revealed no such bias. As a benchmark, the overall wage
premium calculated for 1981 compares very well with that of Shapiro and
Stelcner. During the 1980s no significant increases in the public sector
wage premium for males are found but the female premium increased
significantly. This may be due to changes in pay equity legislation in the
public sector relative to the private sector.
Journal: Applied Economics
Pages: 723-731
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323931
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323931
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:723-731
Template-Type: ReDIF-Article 1.0
Author-Name: Franz Hackl
Author-X-Name-First: Franz
Author-X-Name-Last: Hackl
Author-Name: Gerald Pruckner
Author-X-Name-First: Gerald
Author-X-Name-Last: Pruckner
Title: On the gap between payment card and closed-ended CVM-answers
Abstract:
The paper presents contingent valuation (CV) estimates of benefits
provided by a proposed 'Kalkalpen' National Park in Austria. Although
descriptive results of welfare measures are presented, the focus of the
paper is on methodological questions concerning the analysis of CV
answers. Evidence is given regarding the difference between payment card
(PC) answers and closed-ended question formats. Based on different
estimation models for CV questions substantial differences are found
between closed-ended and payment card welfare measures. On average
PC-willingness to pay (WTP) measures are below the closed-ended figures.
Since the evaluation models are based on different premises in the
calculation of WTP figures a more precise disclosure of the underlying
evaluation methods is required if different question formats are compared
to one another. Identical assumptions on the probability distributions
have to be assumed whenever open- and closed-ended CV welfare measures are
compared. Taking theoretical arguments into account the application of the
closedended double-bounded Spike model that provides an average welfare
measure is recommended.
Journal: Applied Economics
Pages: 733-742
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323940
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323940
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:733-742
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Kim
Author-X-Name-First: Benjamin
Author-X-Name-Last: Kim
Author-Name: Noor Ghazali
Author-X-Name-First: Noor
Author-X-Name-Last: Ghazali
Title: Has the effect of money shocks on interest rates really vanished? Further evidence of the liquidity effect
Abstract:
The liquidity effect of money shocks on the short-term interest rate has
been an integral part of traditional macroeconomic policies and has
witnessed renewed interest in recent years. The paper reports, contrary to
some previous work, extensive evidence of the effect in several non-G7
countries using the single-equation distributed-lag GARCH(p,q) estimation
and the systems VAR estimation. The liquidity effect is shown to be alive
and well in a sample of nine countries and this will shed much light on
policy implications.
Journal: Applied Economics
Pages: 743-754
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323959
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323959
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:743-754
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Giosa
Author-X-Name-First: Christopher
Author-X-Name-Last: Giosa
Author-Name: Sheila Amin Gutierrez De Pineres
Author-X-Name-First: Sheila Amin Gutierrez
Author-X-Name-Last: De Pineres
Title: Do government policies distort relative factor prices: evidence from Colombia
Abstract:
Developing countries have a variety of governmental and trade policies
which are intended to affect the return to capital. In an estimation of
the return to capital in Colombia an attempt is made to account for taxes,
both direct and indirect, governmental subsidies, and trade taxes and
subsidies. The economic income that accrues to Colombia's capital stock is
estimated by estimating the growth of the capital stock and the net cash
flows generated by that capital. Additionally, the average annual
effective rate of protection to the manufacturing sector is estimated;
then using these effective rates of protection, a test is made to
determine if in fact protectionism affects the return to capital. Results
reveal that there is a significant positive relationship between trade
protection and the rate of return to capital in Colombia. Furthermore,
support is found for a Stopler-Samuelson effect of higher prices in the
labourintensive agricultural sector leading to decline in the return for
capital. Therefore, government policies do in fact cloud market signals
and distort relative factor prices resulting in the misallocation of
resources.
Journal: Applied Economics
Pages: 755-759
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323968
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323968
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:755-759
Template-Type: ReDIF-Article 1.0
Author-Name: Yaacov Lavi
Author-X-Name-First: Yaacov
Author-X-Name-Last: Lavi
Author-Name: Avia Spak
Author-X-Name-First: Avia
Author-X-Name-Last: Spak
Title: The impact of pension schemes on saving in Israel
Abstract:
Israeli micro and macro data indicate that consumption smoothing is
limited and thus pension savings increase private and national savings.
Since private savings rates are, to a great extent, unequal across
different income groups, saving is almost exclusively concentrated in the
upper two quintiles.
Journal: Applied Economics
Pages: 761-774
Issue: 6
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323977
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323977
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Handle: RePEc:taf:applec:v:31:y:1999:i:6:p:761-774
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Author-Name: Sean Holly
Author-X-Name-First: Sean
Author-X-Name-Last: Holly
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: DHSY revisited: the role of asymmetries
Abstract:
Davidson et al.'s data set is used to demonstrate the existence of a
significant asymmetry in the adjustment of consumption towards
equilibrium. The Granger-Lee and Escribano-Pfann methods of partitioning
the error correction term are compared and it is shown that the latter
produces better results in this case. It is concluded that adjustment is
faster under conditions of recession than it is during boom periods.
Journal: Applied Economics
Pages: 775-778
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323742
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323742
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:775-778
Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton
Author-X-Name-First: James
Author-X-Name-Last: Thornton
Title: The impact of medical malpractice insurance cost on physician behaviour: the role of income and tort signal effects
Abstract:
The paper examines the impact of medical malpractice insurance cost on
physician behaviour. Changes in malpractice insurance premiums can
potentially influence physician behaviour directly through income effects
from changes in medical practice earnings, and indirectly through tort
signal effects that indicate exposure to malpractice risk. A structural
model of the physician/firm is estimated to assess the significance,
magnitude, and relative importance of income and tort signal effects of
premium changes on physician time allocation and service supply. Using
data on solo practice physicians, evidence is found of both income and
tort signal effects for primary care physicians and surgeons. Results also
indicate that income effects have a relatively larger impact on measures
of physician behaviour such as services provided and fees, while tort
signal effects, which reflect defensive measures, have a much smaller
impact.
Journal: Applied Economics
Pages: 779-794
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323751
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323751
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:779-794
Template-Type: ReDIF-Article 1.0
Author-Name: Liam Lenten
Author-X-Name-First: Liam
Author-X-Name-Last: Lenten
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: Modelling the trend and seasonality in the consumption of alcoholic beverages in the United Kingdom
Abstract:
A univariate time series analysis of the consumption of beer, wine and
spirits in the UK over the period 1964-1995 is presented. The analysis
shows that the consumption of beer and wine exhibits stochastic
seasonality while the consumption of spirits exhibits deterministic
seasonality. Moreover, the three series are found to have stochastic
trends. Analysis of the out-of-sample forecasting power of the various
models reveals that the model with stochastic trend and seasonality is
superior to other models. The results cast doubt on the validity and
soundness of the practice of modelling the consumption of alcoholic
beverages by assuming deterministic trend and seasonality.
Journal: Applied Economics
Pages: 795-804
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323760
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323760
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:795-804
Template-Type: ReDIF-Article 1.0
Author-Name: Tsung Wu Ho
Author-X-Name-First: Tsung Wu
Author-X-Name-Last: Ho
Title: Export-orientation and investment-saving correlation: a case of Taiwan
Abstract:
Perfect capital mobility has been formulated as a saving-investment
comovement in each country which is statistically insignificant from zero;
thus, the low correlation has been interpreted as evidence that the
domestic capital market is not internationally mobile. However, this
argument may be invalid in an open economy because its national income
responds to changes in exchange rate. According to open economy
macroeconomics, domestic income will respond to changes in the nominal
exchange rate (via trade), therefore, in an open export - oriented
economy, the nominal exchange rate has larger impact on GDP, so that the
domestic investment and saving ratios will be statistically significant
from zero. This paper evaluates this argument in terms of Taiwan, which is
not only an export-oriented economy, but also has been experiencing a
sequence of financial openness policies since the mid-1970s. To correct
for simultaneous equation bias and accounts for the nonstationarity of the
underlying time series, Johansen's procedure and a non-linear
single-equation ECM are used. Strong cointegration between investment and
saving ratios is identified in Taiwan which supports our hypothesis.
Journal: Applied Economics
Pages: 805-813
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323779
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323779
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:805-813
Template-Type: ReDIF-Article 1.0
Author-Name: Lucia Parisio
Author-X-Name-First: Lucia
Author-X-Name-Last: Parisio
Title: A comparative analysis of European railroads efficiency: a cost frontier approach
Abstract:
The paper analyses the issue of cost efficiency for eight main European
railroads in a sample period of 17 years. Measures of technical and
allocative efficiency are obtained from a stochastic cost frontier model,
with minimal cost described by a translog cost system. In the model, the
cost of allocative inefficiency is estimated simultaneously from the
shares' errors, whereas technical inefficiency is modelled by a (half
normal) positive departure from the cost frontier. Results show a
negligible effect of allocative inefficiency on firms' costs, whereas the
cost of technical inefficiency appears to be significant.
Journal: Applied Economics
Pages: 815-823
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323788
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323788
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:815-823
Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Title: The asymmetric stabilizing effects of price flexibility: historical evidence and implications
Abstract:
The evidence of business cycles across a sample of industrial countries
indicates asymmetry in the output and price adjustments to aggregate
demand shocks in the pre- and post-war periods. Upward price flexibility
is significant in moderating output fluctuations across countries in the
pre- and post-war periods. Nonetheless, the effect of upward price
flexibility in accelerating trend price inflation is more evident across
countries in the post-war period compared to the pre-war period. The
combined evidence is consistent with a steeper supply curve in the face of
expansionary demand shocks that increases the stabilizing effect of upward
price flexibility. In contrast, a flatter supply curve in the face of
negative demand shocks has countered the stabilizing function of downward
price flexibility, which appears insignificant across countries in the
pre- and post-war periods. In addition, a slower demand response to price
change during recessions has further reinforced the contractionary effect
on output despite a large reduction in price inflation across countries in
the pre-war period. Apparent differences in the implications of upward and
downward price flexibility point to the importance of policy intervention
to moderate output contraction during recessions and price inflation
during expansions.
Journal: Applied Economics
Pages: 825-839
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323797
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:825-839
Template-Type: ReDIF-Article 1.0
Author-Name: Agustin Garcia Garcia
Author-X-Name-First: Agustin Garcia
Author-X-Name-Last: Garcia
Title: Consumption of Spanish households: evidence from cohort data
Abstract:
In this paper, empirical evidence on elasticity of intertemporal
substitution for Spanish household consumption is shown. Several recent
studies have rejected the lifecycle-permanent income hypothesis using
aggregate time series. The rejection of the theory has often been blamed
on the restrictive assumptions adopted in order to test the hypothesis.
This article tests the household behaviour using cohort data from the
Spanish Encuesta Continua de Presupuestos Familiares (Continuous Survey of
Household Budgets). This source allows us to relax some of the most
restrictive assumptions by using data with a certain degree of
disaggregation. Evidence of consumer behaviour following the theory is
found. Indirect evidence of liquidity constraints is also found and an
alternative discount rate designed to be in better accordance with the
theoretical foundations of the model is proposed.
Journal: Applied Economics
Pages: 841-855
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323805
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:841-855
Template-Type: ReDIF-Article 1.0
Author-Name: Gerard Go
Author-X-Name-First: Gerard
Author-X-Name-Last: Go
Author-Name: David Kamerschen
Author-X-Name-First: David
Author-X-Name-Last: Kamerschen
Author-Name: Charles Delorme
Author-X-Name-First: Charles
Author-X-Name-Last: Delorme
Title: Market structure and price-cost margins in Philippine manufacturing industries
Abstract:
We test the hypothesis that variations in industry price-cost margins
(PCM) performance are explained by sellers' various structure and conduct
variables such as sellers' concentration (i.e., HHI for value added),
capital-output ratio, barrier to entry, industry demand growth rate,
import penetration export share, and degree of foreign participation
(multinational) in four-digit Philippines Standard Industrial
Classification manufacturing industries. The statistical analyses are a
series of multiple regression equations relating the PCM to the
previously-mentioned explanatory variables. Estimation results show a
generally positive relationship between sellers' concentration, capital
intensity, degree of foreign participation and the PCM. Industry growth
rate may either increase or reduce PCM. Imports and exports lower PCM.
Journal: Applied Economics
Pages: 857-864
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323814
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323814
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:857-864
Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Berggren
Author-X-Name-First: Fredrik
Author-X-Name-Last: Berggren
Author-Name: Matthew Sutton
Author-X-Name-First: Matthew
Author-X-Name-Last: Sutton
Title: Are frequency and intensity of participation decision-bearing aspects of consumption? An analysis of drinking behaviour
Abstract:
Analysing quantity consumed per-period implies a restriction on decisions
about how frequently and intensely to consume. This 'quantity-hypothesis'
is rejected based on estimated equations for the frequency and intensity
of spirit consumption. Consequently, a simultaneous equation system for
frequency and intensity is estimated as they enter the budget constraint
as a multiplicative term. Income and education levels are found to be
negatively related to intensity but not frequency. This may reflect
differences in the shadow prices of frequency and intensity for different
socioeconomic groups or heterogeneous preferences for intoxication and
health. Distinguishing between these aspects of drinking patterns is
important for the evaluation of the price-responsiveness of harmful
drinking, restrictions on availability and the causes of inequalities in
health.
Journal: Applied Economics
Pages: 865-874
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323823
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:865-874
Template-Type: ReDIF-Article 1.0
Author-Name: O. Homer Erekson
Author-X-Name-First: O. Homer
Author-X-Name-Last: Erekson
Author-Name: Glenn Platt
Author-X-Name-First: Glenn
Author-X-Name-Last: Platt
Author-Name: Christopher Whistler
Author-X-Name-First: Christopher
Author-X-Name-Last: Whistler
Author-Name: Andrea Ziegert
Author-X-Name-First: Andrea
Author-X-Name-Last: Ziegert
Title: Factors influencing the adoption of state lotteries
Abstract:
This paper explores the factors influencing the adoption of state
lotteries in the United States. The conceptual framework utilizes a common
utility framework in which a representative legislator maximizes utility
derived from the current and expected fiscal position of a state, subject
to a political constraint. The empirical results support the theoretical
hypotheses, including the finding that changes in the fiscal health of the
state, the predicted profit potential of a lottery, and the political
climate of the state all affect the likelihood that a lottery is adopted.
By introducing a sound conceptual framework, using better data than used
in previous studies, utilizing an appropriate estimation technique, and
obtaining strong results, this study advances our knowledge of why states
adopt lotteries.
Journal: Applied Economics
Pages: 875-884
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323832
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323832
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:875-884
Template-Type: ReDIF-Article 1.0
Author-Name: Luanne Lohr
Author-X-Name-First: Luanne
Author-X-Name-Last: Lohr
Author-Name: Timothy Park
Author-X-Name-First: Timothy
Author-X-Name-Last: Park
Title: Integrated markup rules for optimal pricing decisions in expanding markets for organic produce
Abstract:
In expanding markets, firms face uncertainty about demand response to
changing conditions and the appropriate pricing response. Inclusion of
retail demand factors in explaining markup decisions by wholesalers is
crucial to accurate evaluation of the effects of price and market changes
on profitability. We apply an integrated demand and markup model to
markets for organic broccoli and carrots where wholesalers set markups
facing retail demand. The estimated integrated system includes
crossequation restrictions on organic and conventional prices received
from retail, publicity about food safety scares and availability of a
competing certification programme. The results show that organic
wholesalers behave strategically in response to observable demand factors
as they expand into fresh produce markets. Wholesalers arbitrage markups
across items to increase market share, combining crop-specific and overall
market information to decide on appropriate responses. Wholesalers also
attempt to moderate markups in response to demand fluctuations in order to
smooth market development.
Journal: Applied Economics
Pages: 885-892
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323841
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323841
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:885-892
Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Pons
Author-X-Name-First: Jordi
Author-X-Name-Last: Pons
Title: Evaluating the OECD's forecasts for economic growth
Abstract:
The size and nature of the errors in GDP forecasts in the G-7 countries
from 1968 to 1995 are examined. These GDP estimates are published by the
Organization for Economic Cooperation and Development in OECD Economic
Outlook. Two alternative hypotheses are tested concerning why revisions
arise. The first hypothesis is that preliminary announcement is simply the
true variable measured with error. In this case, the preliminary
announcement is an unconditionally unbiased but irrational forecast of the
true value. That is, the revision is correlated with known variables. In
particular, it is correlated with the preliminary announcement itself. The
second hypothesis is that revisions arise because the early GDP estimates
are a rational forecast of the true variable. In this case, the error is a
rational forecast error and is therefore uncorrelated with known
information.
Journal: Applied Economics
Pages: 893-902
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323850
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323850
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:893-902
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: Is the export-led growth hypothesis valid for Australia?
Abstract:
The relationship between exports and output is examined using Australian
annual data over the period 1900-1993. Cointegration and causality testing
fails to detect the existence of a long-run or short-run relationship
between the two variables. These results are explained by restoring to the
structural time series modelling approach which shows that while the
output series exhibits cyclical variation, the exports series does not
have this property. It is concluded that the export-led growth hypothesis
is not valid for Australia.
Journal: Applied Economics
Pages: 903-906
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323869
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:903-906
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weber
Author-X-Name-First: Christian
Author-X-Name-Last: Weber
Title: Fiscal policy in general equilibrium: empirical estimates from an error correction model
Abstract:
Recent general equilibrium models of fiscal policy suggest that the
government purchases multiplier can exceed unity and that the multiplier
should be larger in the long run that in the short run. These results
follow from dynamic supply-side interactions of labour and capital, and
are in sharp contrast to the implications of earlier equilibrium models. A
cointegrating regression and an error correction model are used to test
these implications of the equilibrium model of fiscal policy empirically.
Data for post-war USA provide strong empirical support for the equilibrium
model.
Journal: Applied Economics
Pages: 907-913
Issue: 7
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323878
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323878
File-Format: text/html
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Handle: RePEc:taf:applec:v:31:y:1999:i:7:p:907-913
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Faff
Author-X-Name-First: Robert
Author-X-Name-Last: Faff
Author-Name: Richard Heaney
Author-X-Name-First: Richard
Author-X-Name-Last: Heaney
Title: An examination of the relationship between Australian industry equity returns and expected inflation
Abstract:
This paper analyses the relationship between inflation and equity returns
in Australia over the period January 1974 to March 1996. Analysis is based
on monthly and quarterly data, using value weighted equity indices at both
the aggregate market and industry level. Three price indices, the consumer
price index (CPI) (quarterly) and the manufactured materials used index
(MMU) and the manufacturing articles produced index (MAP) (both monthly
and quarterly) are used to measure inflation. Results provide little
evidence of the statistically significant negative relationship observed
in the US for the full study period. Analysis is also conducted on three
subperiods, 'monetary targeting' (July 1976-January 1985), 'checklist
approach' (February 1985-December 1989) and anti-inflation (January
1990-March 1996). At the market level the anti-inflation subperiod does
provide some evidence of a negative relationship between inflation and
equity returns though statistical significance is not apparent with
quarterly time series. The impact of expected inflation on industry
returns varies considerably. Consistent with the overall market analysis,
the incidence of negative expected inflation betas increases in the latter
anti-inflation subperiod. Finally, changes in Government inflation policy
appear to have greatest impact on industrial company expected inflation
betas.
Journal: Applied Economics
Pages: 915-933
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323643
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323643
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:915-933
Template-Type: ReDIF-Article 1.0
Author-Name: U. -G. Gerdtham
Author-X-Name-First: U. -G.
Author-X-Name-Last: Gerdtham
Author-Name: C. Rehnberg
Author-X-Name-First: C.
Author-X-Name-Last: Rehnberg
Author-Name: M. Tambour
Author-X-Name-First: M.
Author-X-Name-Last: Tambour
Title: The impact of internal markets on health care efficiency: evidence from health care reforms in Sweden
Abstract:
A purchaser/provider split together with output-based reimbursement were
recently introduced by several Swedish county councils. These changes have
been motivated by arguments of efficiency and consumer choice. This paper
tests the null hypothesis that hospital services are provided as
efficiently by county councils with internal markets and output-based
reimbursement as by county councils with budget reimbursement. We first
estimate technical efficiency using data envelopment analysis and then we
regress the efficiency scores as the dependent variable on new internal
organizations in a multiple regression by use of pooled cross-section data
for the 26 county councils for two years (1993 and 1994). The results
reject our null hypothesis and we conclude that the organizational changes
in the county councils improve health care efficiency. Our results further
indicate that the potential savings in costs due to a hypothetical switch
from budget based allocation to an output based allocation is about 13%.
We also found some evidence indicating that county councils with a
nonsocialist political majority are relatively more efficient than those
with a socialist regime and that large county councils are more efficient
than small county councils.
Journal: Applied Economics
Pages: 935-945
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323652
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323652
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:935-945
Template-Type: ReDIF-Article 1.0
Author-Name: Rtta Hanninen
Author-X-Name-First: Rtta
Author-X-Name-Last: Hanninen
Author-Name: Anne Toppinen
Author-X-Name-First: Anne
Author-X-Name-Last: Toppinen
Title: Long-run price effects of exchange rate changes in Finnish pulp and paper exports
Abstract:
This paper presents long-run exchange rate elasticities of Finnish
newsprint and pulp export prices in the United Kingdom (UK) and Germany
over the period 1980-94. The elasticities were estimated for a markup
pricing model using Johansen's cointegration method. The magnitudes of the
elasticity estimates obtained by imposing price homogeneity indicate that
pass-through of exchange rate changes to export prices has been incomplete
in both markets. For newsprint, the pass-through elasticity was 0.60 in
the UK and 0.46 in Germany, which means that about one half of the changes
in the exchange rates is reflected in prices as expressed in the
destination countries' currencies and about a half in prices measured in
Finnish markka. Instead, in pulp exports the pass-through elasticities
differed from each other between the two destination countries more
clearly than in newsprint exports, indicating a different pricing
behaviour of Finnish pulp exporters in the UK and Germany when exchange
rate changes. Pass-through was small in the UK pulp market (0.07) as
compared to Germany (0.68).
Journal: Applied Economics
Pages: 947-956
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323661
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323661
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:947-956
Template-Type: ReDIF-Article 1.0
Author-Name: Kelly Giraud
Author-X-Name-First: Kelly
Author-X-Name-Last: Giraud
Author-Name: John B. Loomis Richard
Author-X-Name-First: John B. Loomis
Author-X-Name-Last: Richard
Author-Name: L. Johnson
Author-X-Name-First: L.
Author-X-Name-Last: Johnson
Title: Two valuation questions in one survey: is it a recipe for sequencing and instrument context effects?
Abstract:
Economic theory suggests that willingness to pay for two goods
independently offered should remain unchanged when the survey instrument
changes slightly. Four survey treatments consisting of comprehensive good
and a subset of that good were used. The surveys alternated in the
question ordering and in the embedded good which accompanied the
comprehensive good. We tested for sequencing and instrument context
effects using both a combined and split sample designs. In the combined
sample case we found some evidence to sequencing effects in the data
containing the first subset good. Likelihood ratio tests indicated that
sequencing did not effect scale or location of parameters. In the test for
instrument context effects, evidence was found indicating context does
effect willingness to pay estimates.
Journal: Applied Economics
Pages: 957-964
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323670
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323670
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:957-964
Template-Type: ReDIF-Article 1.0
Author-Name: Ferdaus Hossain
Author-X-Name-First: Ferdaus
Author-X-Name-Last: Hossain
Title: Transitory and permanent disturbances and the current account: an empirical analysis in the intertemporal framework
Abstract:
The intertemporal models of current account determination demonstrate
that in the analysis of the current account balance of a country, it is
important to distinguish between transitory and permanent disturbances in
income and relative prices. This paper attempts to decompose the observed
data on income and real exchange rate into transitory and permanent
components and then uses the decomposed series to test the empirical
validity of the predictions of the intertemporal models. Evidence from the
United States and Japan provide very limited support for the intertemporal
models in terms of the effects of transitory and permanent changes in
income on current account balance. For both US and Japan, the study finds
that permanent changes in real exchange rate have significant effects on
the current account balance. Statistical tests find no evidence of
hysteresis in the trading relations of the two countries.
Journal: Applied Economics
Pages: 965-974
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323689
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323689
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:965-974
Template-Type: ReDIF-Article 1.0
Author-Name: Khalifa Ghali
Author-X-Name-First: Khalifa
Author-X-Name-Last: Ghali
Title: Government size and economic growth: evidence from a multivariate cointegration analysis
Abstract:
This study uses multivariate cointegration techniques and attempts to
model the dynamic interactions between government size and economic growth
in a five variable system consisting of the growth rates of GDP, total
government spending, investment, exports, and imports. Using data on ten
OECD countries the analysis shows: (i) Government size Granger-causes
growth in all the countries with some disparities concerning the
proportion by which government size contributes to explaining future
changes in the growth rates. An innovation shock at the growth rate of
government size generates a permanent effect on the growth rate of GDP
that, for some countries, reaches from 26% to 60% of the total change in
growth: (ii) Government size also Granger-causes investment and
international trade and, for some countries government size Granger-causes
growth indirectly either through investment or the trade variables; and
(iii) In almost all countries, international trade and investment generate
permanent effects on growth. In particular we found that exports and
imports do not have the same effects on growth as is the case in
cross-country growth models.
Journal: Applied Economics
Pages: 975-987
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323698
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323698
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:975-987
Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Garin-Munoz
Author-X-Name-First: Teresa
Author-X-Name-Last: Garin-Munoz
Author-Name: Teodosio Perez-Amaral
Author-X-Name-First: Teodosio
Author-X-Name-Last: Perez-Amaral
Title: A model of Spain-Europe telecommunications
Abstract:
In this study we present a model for the outgoing telephone traffic from
Spain to a group of 24 European countries. We use a point-to-point model
that incorporates the specific characteristics of the international long
distance service and the socioeconomic relationships between Spain and
this group of countries, taking into account the simultaneity between
incoming and outgoing traffic. Recently available data on minutes of
conversation in each direction allow us to use panel data for the period
1981-91. We use an orthogonal deviations estimator with instrumental
variables. The orthogonal deviations transformation allows the specific
unobservable characteristics of each route of traffic to be controlled and
the instrumental variables take care of the simultaneity between incoming
and outgoing traffic. We estimate a total elasticity of the minutes of
outgoing traffic per line with respect to its own real price of - 0.81.
Other significant variables are: the volume of trade, the number of
visitors from each country, the number of foreign residents and the
minutes of incoming traffic. This last variable measures the so-called
reciprocal calling effect which is highly significant with a positive
elasticity of 0.78.
Journal: Applied Economics
Pages: 989-997
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323706
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323706
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:989-997
Template-Type: ReDIF-Article 1.0
Author-Name: Channing Arndt
Author-X-Name-First: Channing
Author-X-Name-Last: Arndt
Author-Name: Songquan Liu
Author-X-Name-First: Songquan
Author-X-Name-Last: Liu
Author-Name: Paul Preckel
Author-X-Name-First: Paul
Author-X-Name-Last: Preckel
Title: On dual approaches to demand systems estimation in the presence of binding quantity constraints
Abstract:
Binding quantity constraints, especially non-negativity constraints,
appear frequently in micro-level data sets. Two dual approaches to demand
systems estimation in the presence of binding non-negativity constraints
are reviewed. It is demonstrated that, in a demand systems context, the
more commonly used approach for treating binding non-negativity
constraints is incompatible with economic theory and thus produces
inconsistent estimates of price response. Furthermore, Monte Carlo
experiments indicate that bias can be substantial even if limit
observations comprise a relatively small portion of the sample. The
alternative, a direct maximum likelihood estimation approach, has
desirable properties; however, analytical and computational difficulties
severely hamper application. The numerical integration approach, employed
here for direct maximum likelihood estimation, is presented. It is
believed that this integration approach facilitates direct maximum
likelihood estimation for some problems. Nevertheless, the ability to
estimate complex demand systems remains constrained.
Journal: Applied Economics
Pages: 999-1008
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323715
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323715
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:999-1008
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Natke
Author-X-Name-First: Paul
Author-X-Name-Last: Natke
Title: Financial repression and firm self-financing of investment: empirical evidence from Brazil
Abstract:
Analysis of 86 Brazilian manufacturing firms operating during a period
marked by some degree of financial repression demonstrates that investment
spending influences the liquid asset holdings of firms. This self-finance
motive is weaker than the transactions motive but, in general, remains
statistically significant across a variety of model specifications. Small
firms are more likely than large firms to finance investment spending
through accumulation of liquid assets. Contrary to the complementarity
hypothesis, however, there is some evidence that firms treat liquid assets
and capital as substitutes. Specification tests comparing the Shaw
hypothesis with the McKinnon hypothesis weakly favour the complementarity
model.
Journal: Applied Economics
Pages: 1009-1019
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323724
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323724
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:1009-1019
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Binner
Author-X-Name-First: J. M.
Author-X-Name-Last: Binner
Author-Name: A. Fielding
Author-X-Name-First: A.
Author-X-Name-Last: Fielding
Author-Name: A. W. Mullineux
Author-X-Name-First: A. W.
Author-X-Name-Last: Mullineux
Title: Divisia money in a composite leading indicator of inflation
Abstract:
The principal objective of this paper is to compare the performance of
the Divisia M4 monetary index with the standard Simple Sum measure of
broad money in the context of composite leading indicators of inflation in
the United Kingdom. Inflation targeting is an important component of
current UK monetary policy and the construction of composite leading
indicators of inflation is a potential advance over the current practice
of monitoring a range of indicators of inflation. The leading indicators
proposed provide useful turning point information for inflation and
advocate principal component analysis as a more sophisticated weighting
mechanism for the constituent components. Indicators constructed using a
Divisia index measure of money were found to be more closely related to
the inflation reference cycle than indicators using their Simple Sum
counterparts when a principal components weighting mechanism was used.
Journal: Applied Economics
Pages: 1021-1031
Issue: 8
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323733
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323733
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Handle: RePEc:taf:applec:v:31:y:1999:i:8:p:1021-1031
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello
Author-X-Name-First: Francesco
Author-X-Name-Last: Aiello
Title: Effects of STABEX on ACPs' economic growth: Further evidence
Abstract:
The paper deals with the economic growth of the open and small developing
countries which signed the Lome Convention (henceforth ACPs). Results
showing that earnings instability damages their economic performance can
be used to support the EU policy of guaranteeing financial aid to those
countries suffering reductions in export proceeds. The second section of
the paper analysing the workings of STABEX, however, highlights certain
weaknesses in the effectiveness of STABEX transfers when their impact on
economic growth is considered. The general conclusion is that, if the
current EU-ACP negotiations for Lome V are to be successful, then some
aspects of the scheme (eligibility criteria and use of funds) will have to
be radically changed.
Journal: Applied Economics
Pages: 1033-1042
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323517
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323517
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1033-1042
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Stancanelli
Author-X-Name-First: Elena
Author-X-Name-Last: Stancanelli
Title: Unemployment duration and the duration of entitlement to unemployment benefits: an empirical study for Britain
Abstract:
The aim of this paper is to investigate the impact of the expected
duration of unemployment benefits on the individual probability of leaving
unemployment. The theory predicts that the probability of leaving
unemployment will increase near the time of the expected exhaustion of
unemployment insurance. Still a limited number of empirical studies is
available for European countries. The data used for the analysis relate to
Britain. The probability of leaving unemployment to take up a full-time
job is distinguished from the probability of exiting into other states. It
is concluded that although there is some evidence of spikes in the hazard
rate near the time of expected benefit exhaustion, no statistically
significant benefit exhaustion effect is found.
Journal: Applied Economics
Pages: 1043-1051
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323526
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323526
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1043-1051
Template-Type: ReDIF-Article 1.0
Author-Name: Asa Lofstrom
Author-X-Name-First: Asa
Author-X-Name-Last: Lofstrom
Title: Can job evaluation improve women's wages?
Abstract:
Systematic job evaluation or comparable worth programmes are often seen
as a method to increase the relative wages of women. This paper examines
whether this is the case using two job evaluation studies from the
university sector in Sweden. Two different evaluation schemes were used in
these studies. The general result found in this analysis is that complete
implementation of the evaluation results would lead to an increase in
women's relative wages by between 2 and 6%. This finding is, however, not
uniform in the sense that all women would gain and all men would lose.
Results indicate that about two-thirds of women are 'winners' and
one-third 'losers', while the figures for men are approximately the
reverse. Assuming that the job evaluations give a correct measure of
productivity, the results are also used in an analysis of wage
discrimination and the crowding effect. The findings indicate a
significant crowding effect, but are less conclusive with regard to
discrimination.
Journal: Applied Economics
Pages: 1053-1060
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323535
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323535
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1053-1060
Template-Type: ReDIF-Article 1.0
Author-Name: Charalambos Pattichis
Author-X-Name-First: Charalambos
Author-X-Name-Last: Pattichis
Title: Price and income elasticities of disaggregated import demand: results from UECMs and an application
Abstract:
This paper presents an empirical analysis of the demand for maize, milk
powder, butter, and rice imports in Cyprus, using annual time series data
covering the period 1975-1994. None of these products is produced in
Cyprus and all the necessary quantities are imported to meet domestic
demand. The primary objective of the paper is to derive long-run price and
income elasticities of import demand that can be used to analyse the
impact of various policies such as the adoption of the Common Agricultural
Policy (CAP) when, and if, the Republic of Cyprus joins the European Union
(EU). In so doing the paper takes on board some recent developments in
time series econometrics. The cointegration test used (the 'bounds' test)
is a recent test and is based on the estimation of an unrestricted
error-correction model (UECM). Parsimonious models were derived using
Hendry's 'general to specific' approach. The estimated elasticities were
subsequently used to quantify some of the implications for Cyprus had the
CAP been operational in 1994.
Journal: Applied Economics
Pages: 1061-1071
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323544
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323544
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1061-1071
Template-Type: ReDIF-Article 1.0
Author-Name: Ferdaus Hossain
Author-X-Name-First: Ferdaus
Author-X-Name-Last: Hossain
Author-Name: Pin Chung
Author-X-Name-First: Pin
Author-X-Name-Last: Chung
Title: Long-run implications of neoclassical growth models: empirical evidence from Australia, New Zealand, South Korea and Taiwan
Abstract:
Long-run implications of the one-factor neoclassical growth models are
tested by using data from Australia, New Zealand, South Korea and Taiwan.
Testable propositions about the long-run relations between log of real
output, consumption, and investment are investigated using unit root tests
and cointegration analysis. Also, common trends analysis is used to
identify the sources of the permanent shocks driving the common long-run
trend. Further, variance decomposition is used to examine the extent to
which innovations to the common trend component are able to explain
short-run fluctuations in the data. Empirical results provide limited
support for the neoclassical models. In addition to productivity shocks,
permanent innovations to investment are found to be important components
of the long-run stochastic trend governing the dynamic behaviour of real
output, consumption and investment. Variance decomposition results suggest
that although innovations to common trend components are important, this
is unable to explain a substantial fraction of short-run fluctuations in
the data.
Journal: Applied Economics
Pages: 1073-1082
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323553
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323553
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1073-1082
Template-Type: ReDIF-Article 1.0
Author-Name: Zinan Liu
Author-X-Name-First: Zinan
Author-X-Name-Last: Liu
Author-Name: E. L. Lynk
Author-X-Name-First: E. L.
Author-X-Name-Last: Lynk
Title: Evidence on market structure of the deregulated US airline industry
Abstract:
Airline deregulation in the USA was a rejection of inefficient regulation
and inspired by the perspective of both potential and actual competition
in the industry. Using multivariate regression and efficiency frontier
techniques, the emergent structure of unregulated airline markets is
assessed. Our findings, based on panel data for major US airlines during
the period 1984-1991, indicate that (1) as a result of successful efforts
by airlines to reduce the scope for competition, aviation technology now
exhibits increasing rather than constant returns to network size as
predicted by cost studies prior to deregulation; (2) deregulation failed
to produce evidence of efficiency convergence among carriers as would be
expected under sufficiently competitive conditions.
Journal: Applied Economics
Pages: 1083-1092
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323562
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323562
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1083-1092
Template-Type: ReDIF-Article 1.0
Author-Name: George Vamvoukas
Author-X-Name-First: George
Author-X-Name-Last: Vamvoukas
Title: The twin deficits phenomenon: evidence from Greece
Abstract:
This paper explores the relationship between budget and trade deficits in
a small open economy using annual data. The purpose of the paper is to
test empirically the validity and rationale of the Keynesian proposition
(conventional view) and the Ricardian equivalence hypothesis. The
econometric methodology is based on cointegration analysis,
error-correction modelling and Granger trivariate causality. The ECM
empirical findings suggest that budget deficit has short- and long-run
positive and significant causal effects on trade deficit.
Journal: Applied Economics
Pages: 1093-1100
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323571
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323571
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1093-1100
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Meng
Author-X-Name-First: Ronald
Author-X-Name-Last: Meng
Author-Name: Douglas Smith
Author-X-Name-First: Douglas
Author-X-Name-Last: Smith
Title: The impact of workers' compensation on wage premiums for job hazards
Abstract:
The existence of a trade-off between occupational risk and earnings is
well known. Most studies, however, ignore how public insurance systems,
like workers' compensation (WC) affect this trade-off. This paper
incorporates the workers' compensation system into a hedonic earnings
function for paid employees. The results show that workers' compensation
lowers the wage-risk trade-off for a sample of Ontario workers. In the
absence of workers' compensation, employees would receive a significantly
higher risk premium for exposure to the possibility of occupational
injuries. This implies that labour markets will provide more than the
socially optimal degree of risk if experience rating of workers'
compensation is incomplete.
Journal: Applied Economics
Pages: 1101-1108
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323580
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323580
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1101-1108
Template-Type: ReDIF-Article 1.0
Author-Name: Hannu Tanninen
Author-X-Name-First: Hannu
Author-X-Name-Last: Tanninen
Title: Income inequality, government expenditures and growth
Abstract:
This paper investigates the relationship between income inequality and
growth by utilizing the recently published Deininger-Squire data set. Most
of the recent empirical growth literature suggests a negative relationship
between inequality and growth on the basis of reduced-form growth
equations. This is also found in the author's study. Some effort is made
to discuss the argument behind the perceived negative relationship between
inequality and growth. According to the fiscal policy approach a high
level of income inequality leads to a higher demand for redistribution,
which in turn affects growth through resource allocation out of investment
or through incentive-distorting taxes needed to fund the redistribution.
It is suggested that the last-mentioned relationship between government
expenditure and growth is more likely to be non-linear; positive with
small amounts and negative with large amounts. Such a relationship,
however, is only found for public goods. Thus, government expenditure on
'law and order' may, with higher amounts of expenditure, have negative
effects on growth, therefore indirectly supporting the socio-political
stability argument.
Journal: Applied Economics
Pages: 1109-1117
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323599
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323599
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1109-1117
Template-Type: ReDIF-Article 1.0
Author-Name: Clinton Greene
Author-X-Name-First: Clinton
Author-X-Name-Last: Greene
Title: On the impossibility of a stable and low GDP elasticity of money demand: the arithmetic of aggregation, replication and income growth
Abstract:
This paper shows the aggregate income (GDP) elasticity of money demand
depends on the elasticity at the individual level and on population
growth. As money regressions are usually formulated using US post-WW.II
data, a low and stable aggregate income elasticity implies a negative and
unstable elasticity at the individual level. Likewise positing a stable
and non-unitary individual income elasticity implies wide variation in the
conventional GDP elasticity over time. It has been possible to ignore
these issues in empirical work due to collinearity between regressors and
population, even for differenced data. Measuring money and income on a per
household basis is a simple way to avoid these problems and to distinguish
income from mere replication effects.
Journal: Applied Economics
Pages: 1119-1127
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323607
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323607
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1119-1127
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Khalid
Author-X-Name-First: Ahmed
Author-X-Name-Last: Khalid
Title: Modelling money demand in open economies: the case of selected Asian countries
Abstract:
While early work on money demand estimation focused primarily on the
importance of domestic variables, many studies in later years have
suggested that foreign variables also influence the domestic demand for
money in an open economy. With the rapid financial market liberalization
in some of the Asian economies in the last couple of decades, open economy
factors have become very important in the determination of money demand.
Therefore, this paper aims to ascertain the degree to which foreign
opportunity cost variables influence money demand in the Philippines,
Singapore and South Korea. Cointegration analysis is performed and an
error correction model estimated using quarterly time-series data. The
empirical results support the inclusion of foreign opportunity cost
variables in the money demand function.
Journal: Applied Economics
Pages: 1129-1135
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323616
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323616
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1129-1135
Template-Type: ReDIF-Article 1.0
Author-Name: Abdur Chowdhury
Author-X-Name-First: Abdur
Author-X-Name-Last: Chowdhury
Author-Name: Mark Wheeler
Author-X-Name-First: Mark
Author-X-Name-Last: Wheeler
Title: The velocity of US M2 in the 1990s: some further evidence
Abstract:
This paper investigates the behaviour of M2 velocity in recent years with
special emphasis on the post-1989 period. Unlike previous studies in this
area, M2 velocity is analysed in the context of a small vector
autoregressive (VAR) model which includes income, prices, interest rates,
and money growth volatility. The hypothesis of a structural shift in M2
velocity associated with the post-1989 period is rejected by the VAR
model. This suggests that the unusual behaviour of M2 velocity since 1989
may be traced to the variability in its determinants, rather than to a
shift in the process generating velocity. Variance decompositions indicate
that real income and the short-term opportunity cost of M2 are the most
important determinants of M2 velocity. The long-term opportunity cost of
M2 and the return on equities also have significant impacts on M2
velocity.
Journal: Applied Economics
Pages: 1137-1144
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323625
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323625
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1137-1144
Template-Type: ReDIF-Article 1.0
Author-Name: Dawn Richards Elliott
Author-X-Name-First: Dawn Richards
Author-X-Name-Last: Elliott
Author-Name: Rupert Rhodd
Author-X-Name-First: Rupert
Author-X-Name-Last: Rhodd
Title: Explaining growth rate differences in highly indebted countries: an extension to Thirlwall and Hussain
Abstract:
In recent years, growth rate differences have increased and have elicited
numerous explanations. Among the most controversial interpretations is
that postulated by Thirlwall (1979) and later extended by Thirlwall and
Hussain (1982), both papers arguing that growth rate differences are best
explained by demand constraints found in the balance of payments. Although
the inclusion of capital flows by Thirlwall and Hussain (1982) is widely
viewed as an improvement in the original model, still we believe the model
to be less than complete because it omitted the effect of debt servicing.
Extending the model to include the effect of debt servicing, this paper
improves the predictability of the original model as it brought the actual
growth rates closer to the predicted growth rates for most of the
countries used in the previous research.
Journal: Applied Economics
Pages: 1145-1148
Issue: 9
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323634
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323634
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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1145-1148
Template-Type: ReDIF-Article 1.0
Author-Name: Cees Gorter
Author-X-Name-First: Cees
Author-X-Name-Last: Gorter
Author-Name: Jos Van Ommeren
Author-X-Name-First: Jos
Author-X-Name-Last: Van Ommeren
Title: Sequencing, timing and filling rates of recruitment channels
Abstract:
This paper analyses the recruitment process by which employers adjust
their search strategies. The focus is, in particular, on the sequence and
timing of recruitment channels. Two search strategies are identified. One
strategy is to advertise a vacancy, and to form a pool of candidates by
activating subsequent recruitment channels such that candidates are added
to the pool. An alternative strategy used by employers is to start
searching via informal channels, consider applicants at arrival and
continue their search along a new recruitment channel if no suitable
candidates show up. Results suggest that when informal personal contacts
are available to the employer, this 'switching of channel' strategy is
preferred. Moreover, the results of this paper are consistent with the
view that informal search methods are potentially more efficient than
using an advertisement and forming a pool of applicants, in particular
when vital positions in firms have to be filled.
Journal: Applied Economics
Pages: 1149-1160
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323373
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323373
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1149-1160
Template-Type: ReDIF-Article 1.0
Author-Name: M. Azali
Author-X-Name-First: M.
Author-X-Name-Last: Azali
Author-Name: K. G. P. Matthews
Author-X-Name-First: K. G. P.
Author-X-Name-Last: Matthews
Title: Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia
Abstract:
Using the Bernanke's contemporaneous structural VAR, this paper
investigates the role of money and credit in the monetary transmission
mechanism during the pre- and post-liberalization periods in Malaysia.
During the pre-liberalization period where credit and interest rates were
regulated, the evidence supports the dominance of bank credit shocks over
money shocks in explaining the output variability. After the
liberalization of financial market, however, money as well as credit
innovations were proven to make significant contribution to the output
fluctuation.
Journal: Applied Economics
Pages: 1161-1170
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323382
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323382
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1161-1170
Template-Type: ReDIF-Article 1.0
Author-Name: Veronica Cabezas
Author-X-Name-First: Veronica
Author-X-Name-Last: Cabezas
Author-Name: Jason MacDonald
Author-X-Name-First: Jason
Author-X-Name-Last: MacDonald
Title: Hysteresis and the earnings of immigrants in the United States labour market
Abstract:
The paper analyses the role of hysteresis in explaining the slow wage
convergence between certain immigrant groups and native workers. Using the
1990 Integrated Public Use Microdata Samples (IPUMS), the analysis reveals
that past earnings history in the country of origin has a relatively
smaller effect on post-migration earnings when compared to past earnings
history in the US. In addition, the paper suggests that the earnings
history in the country of origin is more productive in the US labour
market for immigrants from advanced economies as compared to those from
less-developed countries. In particular, we find that US labour market
does not value the past earnings history of Mexican immigrants as high as
that of other ethnic groups with similar socioeconomic characteristics
across successive cohorts.
Journal: Applied Economics
Pages: 1171-1182
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323391
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323391
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1171-1182
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Turrini
Author-X-Name-First: Alessandro
Author-X-Name-Last: Turrini
Title: Liberalization, quality and welfare: removing the Italian VER on Japanese car exports
Abstract:
The empirical evidence that evaluates ex-post the effects of trade policy
confirms the presumption, well known in theory, that quantitative barriers
to trade have an impact on the average quality of exports. Yet, in
evaluating ex-ante the effects of trade policy reform, very few studies
take into account the role of the induced change in quality. The paper
evaluates the effects of liberalization in the Italian car market through
a calibrated model where the choice of the quality of exports is made
endogenous. Simulating the removal of the VER on Japanese exports, there
are substantial gains from liberalization when only quantity effects are
considered. Results change dramatically if quality effects are taken into
account: the downgrading in Japanese exports entails a strong reduction in
consumers' gains.
Journal: Applied Economics
Pages: 1183-1194
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323409
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323409
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1183-1194
Template-Type: ReDIF-Article 1.0
Author-Name: Joan Muysken
Author-X-Name-First: Joan
Author-X-Name-Last: Muysken
Author-Name: Tom Van Veen
Author-X-Name-First: Tom
Author-X-Name-Last: Van Veen
Author-Name: Erik De Regt
Author-X-Name-First: Erik
Author-X-Name-Last: De Regt
Title: Does a shift in the tax burden create employment?
Abstract:
According to Dalton's Law it does not matter which side of the market is
taxed. This holds for a model of the labour market as well. Nevertheless,
it is often maintained that shifting the wedge from employers to employees
has favourable effects on employment. That is, a shift from employers' to
employees' taxes decreases wages and hence unemployment. This apparent
paradox is discussed by analysing the impact of taxes in a wage bargaining
model - it is shown that Dalton's Law does not necessarily hold in those
models. The findings are illustrated by empirical results concerning tax
shifting by employers and employees for the Netherlands. It is found that
no employers' taxes are shifted backwards, whereas about 44% of employees'
taxes are shifted forwards. These values imply a positive effect on
employment of a reduction of the wedge in favour of employers.
Journal: Applied Economics
Pages: 1195-1205
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323418
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323418
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1195-1205
Template-Type: ReDIF-Article 1.0
Author-Name: Knut Roed
Author-X-Name-First: Knut
Author-X-Name-Last: Roed
Author-Name: Oddbjorn Raaum
Author-X-Name-First: Oddbjorn
Author-X-Name-Last: Raaum
Author-Name: Harald Goldstein
Author-X-Name-First: Harald
Author-X-Name-Last: Goldstein
Title: Does unemployment cause unemployment? Micro evidence from Norway
Abstract:
The way that unemployment duration affects employment prospects, is
investigated using Norwegian micro transition data encompassing detailed
accounts of 14 807 unemployed adults. A generalized non-proportional
Weibull model is estimated, with two possible exits from the unemployment
pool: a job or a labour force exit. On average the probability of
obtaining a job is fairly constant at the individual level, while the
probability of exiting the labour force increases significantly as
unemployment duration is prolonged. For some particular groups of
unemployed, there is also a marked negative duration dependence in the
probability of obtaining a job.
Journal: Applied Economics
Pages: 1207-1218
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323427
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323427
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1207-1218
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Lee
Author-X-Name-First: Gabriel
Author-X-Name-Last: Lee
Title: Housing cycles and the period of production
Abstract:
US fixed residential investment is one of the most periodic economic time
series. A theory of housing cycles is analysed on the basis of the period
of housing construction. Substantial lags between planning and completion
phases of housing construction cause housing investment to respond
cyclically to exogenous shocks in demand and production costs. Known
structural parameters of the housing industry provide sharp numerical
benchmarks for the resulting dynamic system. The calibrated model with two
construction lags describes the housing data and cycles well.
Journal: Applied Economics
Pages: 1219-1230
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323436
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323436
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1219-1230
Template-Type: ReDIF-Article 1.0
Author-Name: Mickael Lothgren
Author-X-Name-First: Mickael
Author-X-Name-Last: Lothgren
Author-Name: Magnus Tambour
Author-X-Name-First: Magnus
Author-X-Name-Last: Tambour
Title: Testing scale efficiency in DEA models: a bootstrapping approach
Abstract:
This paper presents a method for estimation and test of firm-specific
scale efficiency using data envelopment analysis (DEA). The use of a
simple bootstrap algorithm is proposed to perform firm-specific inference
for scale efficiency. An empirical application using Swedish hospital data
is provided. It is found that about 40% of the departments were scale
efficient according to the original results. However, for about one-third
of those departments the hypothesis of scale efficiency could be rejected.
Journal: Applied Economics
Pages: 1231-1237
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323445
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1231-1237
Template-Type: ReDIF-Article 1.0
Author-Name: Erick Elder
Author-X-Name-First: Erick
Author-X-Name-Last: Elder
Title: Investment effects of departures from governmental present-value budget balance
Abstract:
The paper investigates whether departures from government borrowing
constraints affect the relationship between fiscal-policy innovations and
changes in the investment level. 'Break points', or apparent departures
from present-value budget balance, are then identified. Next, the
investment-deficit relationship is examined prior to and following
identified break points in an effort to detect potential changes in
behaviour. The investment-deficit relationship is quantified by examining
posterior coverage bounds of impulse response functions. Britain appears
to undergo such a break around 1973. Data from this country suggest that
significantly more crowding out occurred following the identified breaks:
in contrast, data from other comparison countries that do not appear to
have experienced breaks indicate stable investment-deficit relationships.
Journal: Applied Economics
Pages: 1239-1247
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323454
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1239-1247
Template-Type: ReDIF-Article 1.0
Author-Name: Shujie Yao
Author-X-Name-First: Shujie
Author-X-Name-Last: Yao
Title: On the decomposition of Gini coefficients by population class and income source: a spreadsheet approach and application
Abstract:
There are in the literature many different formulae and methodologies for
deriving and decomposing Gini coefficients. Needless to say, different
methodologies have their own advantages and limitations. Some Gini
formulae are unnecessarily complicated and impractical. Some are biased
estimators and/or not decomposable. This paper presents a simple and exact
formula and develops a systematic procedure for decomposition by
population class and income source in a spreadsheet without using matrix
algebra, integration, regression and covariances. The Gini formula and
decomposition method can be used for individual data and for evenly or
unevenly grouped data. Many complicated concepts regarding the Gini and
its components are given an intuitive economic interpretation. A household
survey data set for Sichuan, China, is used to demonstrate, step by step,
how the methodology is applied in empirical analyses.
Journal: Applied Economics
Pages: 1249-1264
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323463
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323463
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1249-1264
Template-Type: ReDIF-Article 1.0
Author-Name: Xiangdong Wei
Author-X-Name-First: Xiangdong
Author-X-Name-Last: Wei
Title: Estimating British workers' demand for safety
Abstract:
This paper estimates workers' demand function for job safety using the
British General Household Survey data. The estimation employs Rosen's
two-stage procedure. The main difference between our study and those done
in the past is that we estimate hedonic price equations with data sets
from two labour markets. Our approach overcomes the usual identification
problems associated with the application of Rosen's method. The estimation
shows that there is a significant wage compensation for job risk in the
UK. The willingness-to-pay for a 1/100 000 decrease of annual job fatal
accident rate from our estimated workers' demand function is about £6
in 1973 prices. The estimation of a demand function for safety also
enables the derivation of workers' willingness-to-pay for non-marginal
change of job risk, and this can be used for cost-benefit analysis on
projects involving such non-marginal changes.
Journal: Applied Economics
Pages: 1265-1271
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323472
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323472
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1265-1271
Template-Type: ReDIF-Article 1.0
Author-Name: Nandinee Kutty
Author-X-Name-First: Nandinee
Author-X-Name-Last: Kutty
Title: Demand for home modifications: a household production function approach
Abstract:
Coping with activity limitations that occur in old age is an important
issue in the context of increasing life expectancy and the, still,
inevitable onset of chronic conditions in old age. Elderly households can
be viewed as coping with activity limitations by producing functionality
with the use of direct inputs that include home modifications. A model of
the household production of functionality is developed within the general
framework of household production function models of health. Hypotheses
generated from this model are tested using a logit model for data from the
Survey of Asset and Health Dynamics Among the Oldest Old (AHEAD). The main
findings of the empirical analysis are that the demand for home
modifications is fairly income-inelastic, home modifications and personal
care are substitutes to some degree, the demand for home modifications
increases with years of schooling, and that particular health conditions
and the use of other assistive devices are important determinants of the
demand for modifications.
Journal: Applied Economics
Pages: 1273-1281
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323481
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323481
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1273-1281
Template-Type: ReDIF-Article 1.0
Author-Name: Bagala Biswal
Author-X-Name-First: Bagala
Author-X-Name-Last: Biswal
Author-Name: Urvashi Dhawan
Author-X-Name-First: Urvashi
Author-X-Name-Last: Dhawan
Author-Name: Hooi-Yean Lee
Author-X-Name-First: Hooi-Yean
Author-X-Name-Last: Lee
Title: Testing Wagner versus Keynes using disaggregated public expenditure data for Canada
Abstract:
This paper attempts to test Wagnerian versus Keynesian hypotheses by
examining the relationship between national income and total public
expenditure as well as its various components for Canada during the period
1950-1995. Engle and Granger's two-step cointegration and error correction
techniques are employed to test these two hypotheses. The results of this
study support both the hypotheses when tested with broader aggregate
expenditure data, i.e. total government current expenditure (CE) and total
current expenditures on goods and services (CEGS). Although the results of
this study do not support the existence of any long-run relationship
between GDP and the disaggregated public expenditure variables, they do
support the existence of short-run causation implying that national income
may be causing or caused by a component of the total government current
expenditure in the short run.
Journal: Applied Economics
Pages: 1283-1291
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323490
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323490
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1283-1291
Template-Type: ReDIF-Article 1.0
Author-Name: K. Oustapassidis
Author-X-Name-First: K.
Author-X-Name-Last: Oustapassidis
Author-Name: A. Vlachvei
Author-X-Name-First: A.
Author-X-Name-Last: Vlachvei
Title: Profitability and product differentiation in Greek food industries
Abstract:
This paper explains the increasing difference between the profit margins
of differentiated and undifferentiated Greek food manufacturing industries
between 1988 and 1994, using panel data. The 2SLS results for the fixed
effects model show important differences across the high, medium and low
differentiated industry groups. The increasing difference between the
margins of the highly differentiated group - which includes the most
profitable industries - and the other groups can be mainly attributed to
the greater sensitivity of margins in differentiated industries to
advertising and demand changes.
Journal: Applied Economics
Pages: 1293-1298
Issue: 10
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323508
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323508
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Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1293-1298
Template-Type: ReDIF-Article 1.0
Author-Name: A. J. Abbott
Author-X-Name-First: A. J.
Author-X-Name-Last: Abbott
Author-Name: K. A. Lawler
Author-X-Name-First: K. A.
Author-X-Name-Last: Lawler
Author-Name: C. Armistead
Author-X-Name-First: C.
Author-X-Name-Last: Armistead
Title: The UK demand for steel
Abstract:
The paper suggests a short-run model of the demand for steel that may be
used for forecasting future trends. The paper commences with consideration
of a long-run model which is estimated using cointegration analysis. An
error correction model is then developed to depict the short-run movements
to equilibrium. This can be used for the purpose of ex-post forecasting.
Journal: Applied Economics
Pages: 1299-1302
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323175
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323175
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1299-1302
Template-Type: ReDIF-Article 1.0
Author-Name: Lee-Rong Wang
Author-X-Name-First: Lee-Rong
Author-X-Name-Last: Wang
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Title: Do foreign investments affect foreign exchange and stock markets - the case of Taiwan
Abstract:
Foreign investment (FI) has been identified with a recent spate of
speculative attacks on certain foreign currencies, giving rise to several
financial crises. The issue of whether or not FI has destabilization or
demonstration effects on the stock and foreign exchange markets has
therefore received widespread attention in developing countries. The
destabilization effect focuses on whether FI increases or decreases the
volatility of stock prices and foreign exchange markets. The demonstration
effect stresses that because FI focuses more on fundamental factors than
nonfundamental factors, the major influencing factors on stock markets may
change after FIs are permitted to enter into a country. The experience of
Taiwan in this regard can function as a guide for other developing
countries. This paper finds, regarding the destabilization effect, that FI
has a positive influence on the volatility of the exchange rate and a mild
influence on the volatility of stock returns. These results imply that
challenges will probably emerge during the process of liberalization, such
as increased volatility in stock returns and in the exchange rate. Next,
with regard to the demonstration effect, our results show that prior to
the inflow of FI, stock returns are mainly affected by nonfundamental
factors, such as the turnover rate. After the inflow of FI, stock returns
are affected by both nonfundamental and fundamental elements.
Journal: Applied Economics
Pages: 1303-1314
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323184
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323184
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1303-1314
Template-Type: ReDIF-Article 1.0
Author-Name: Denise Young
Author-X-Name-First: Denise
Author-X-Name-Last: Young
Author-Name: Honghai Deng
Author-X-Name-First: Honghai
Author-X-Name-Last: Deng
Title: The effects of education in early-stage agriculture: some evidence from China
Abstract:
The stochastic production frontier approach is used to study the effects
of education on agricultural efficiency for a cross-section of
'early-stage' farms from Guanghan County, Sichuan Province, China.
Education for farm families in rural China is multifaceted with a
combination of formal education, intragenerational transfer of knowledge
within the home, and agricultural extension services. Since our survey
data span two different years with markedly different policy environments,
we are able to examine not only which aspects of education affect
agricultural efficiency, but also whether or not the policy environment
matters. We find limited evidence that in a policy environment that is
conducive to agriculture, formal education provides positive returns in
agriculture. Furthermore, general education may provide greater returns
than the more targeted extension services.
Journal: Applied Economics
Pages: 1315-1323
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323193
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323193
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1315-1323
Template-Type: ReDIF-Article 1.0
Author-Name: James Hartley
Author-X-Name-First: James
Author-X-Name-Last: Hartley
Title: Real myths and a monetary fact
Abstract:
In their paper 'Business cycles: real facts and a monetary myth,' Kydland
and Prescott (Federal Reserve Bank of Minneapolis Quarterly Review, 14,
1990) present a series of statistics, generated by using the
Hodrick-Prescott filter, which they define as the 'business cycle facts.'
Prescott (Federal Reserve Bank of Minneapolis Quarterly Review, 10, 1986)
argued that the facts are immune to the method of detrending; however,
even if we use the Hodrick-Prescott filter, we can get a set of facts that
differ in important ways from those in Kydland and Prescott (1990). In
particular, we can generate the conventional wisdom that real wages are
acyclical, very different relative volatilities of consumption, investment
and output, and M1 leading the cycle. In addition, we note that the other
important fact generated by Kydland and Prescott, the countercyclicality
of prices, was not actually a new result.
Journal: Applied Economics
Pages: 1325-1329
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323201
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323201
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1325-1329
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Gabriel
Author-X-Name-First: Paul
Author-X-Name-Last: Gabriel
Author-Name: Curtis Johnson
Author-X-Name-First: Curtis
Author-X-Name-Last: Johnson
Author-Name: Timothy Stanton
Author-X-Name-First: Timothy
Author-X-Name-Last: Stanton
Title: Customer racial discrimination for baseball memorabilia
Abstract:
This paper investigates customer racial discrimination in the market for
baseball cards. It extends previous research by measuring customer racial
preferences at the beginning and end of players' careers. Our results
indicate that customer biases against active Black and Hispanic baseball
players may be mitigated by differential expectations of future
performance. However, over time we detect statistical differences in
rookie card prices by ethnicity, as performance expectations become less
important at the end of a player's career.
Journal: Applied Economics
Pages: 1331-1335
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323210
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323210
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1331-1335
Template-Type: ReDIF-Article 1.0
Author-Name: Giota Panopoulou
Author-X-Name-First: Giota
Author-X-Name-Last: Panopoulou
Author-Name: Panos Tsakloglou
Author-X-Name-First: Panos
Author-X-Name-Last: Tsakloglou
Title: Fertility and economic development: theoretical considerations and cross-country evidence
Abstract:
The paper presents a theoretical background for the analysis of the
relationship between fertility and a number of socioeconomic factors
associated with the process of economic development and analyses
empirically this relationship within a cross-country framework. Fertility
is found to be negatively related with female education, urbanization and
family planning and positively related with the levels of infant mortality
and economic development, whereas no significant relationship between
fertility and female labour force participation is established.
Sensitivity analysis is performed and the policy implications of the
empirical findings are briefly discussed.
Journal: Applied Economics
Pages: 1337-1351
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323229
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323229
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1337-1351
Template-Type: ReDIF-Article 1.0
Author-Name: Yih-Chyi Chuang
Author-X-Name-First: Yih-Chyi
Author-X-Name-Last: Chuang
Title: Returns to scale, productive efficiency, and optimal firm size evidence from Taiwan's firm data
Abstract:
By using Taiwan's census firm data, this paper estimates and tests the
variable returns to scale hypothesis for aggregate manufacturing and
two-digit industries. An efficiency measure is constructed to further
examine the size-efficiency relations among two-digit industries. Analysis
indicates that increasing returns exist at the aggregate manufacturing
level and its magnitude is higher for exporting firms than for
non-exporting firms. Moreover, trade is beneficial only for small firms.
However, the property of increasing returns diminishes for most of the
industries at the two-digit level, particularly for the exporting firms.
This sharp comparison between aggregate and two-digit level results
suggests that trade is conducive to productivity, and provides an
indication of the specific form of technology spillovers among firms and
across industries. Further investigation of the relationship between
productive efficiency and firm size renders the result that optimal firm
size is small for exporting firms in most industries, particularly in the
most export-oriented ones. The technology spillover effect among firms and
across industries is likely the reason for being small and efficient. Our
results also indicate that an industry-wide spillover effect across firms
within the same industry is roughly one-sixth of the firm-specific
export-induced learning effect. Findings in this study provide valuable
insight into Taiwan's economic development and also provide a development
strategy for developing countries to follow.
Journal: Applied Economics
Pages: 1353-1364
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323238
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323238
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1353-1364
Template-Type: ReDIF-Article 1.0
Author-Name: Wayne Talley
Author-X-Name-First: Wayne
Author-X-Name-Last: Talley
Title: The safety of sea transport: determinants of crew injuries
Abstract:
This study investigates determinants of fatal and nonfatal crew injuries
in ship accidents, utilizing detailed data of individual tanker, container
and bulk ship (US and foreign) accidents investigated by the US Coast
Guard. Poisson and negative binomial regression estimates suggest that
fatal and nonfatal injuries are greater: (1) if the accident cause is
human rather than environmental or ship related and (2) for fire/explosion
and multiple-ship accidents. The results provide strong evidence of a
positive relationship between crew injuries and human causes of ship
accidents, thereby providing support for the current shift in safety focus
towards regulating human actions aboard ships rather than just the
condition of ships.
Journal: Applied Economics
Pages: 1365-1372
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323247
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323247
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1365-1372
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Leblanc
Author-X-Name-First: Michael
Author-X-Name-Last: Leblanc
Author-Name: James Hrubovcak
Author-X-Name-First: James
Author-X-Name-Last: Hrubovcak
Author-Name: Ron Durst
Author-X-Name-First: Ron
Author-X-Name-Last: Durst
Title: Changing fiscal federalism in the United States: effects on agriculture and food consumption
Abstract:
This study examines the effects of the changing fiscal role of the
federal government with respect to providing financial support for
low-income households and the taxation of returns from capital.
Specifically, the effects of reducing transfers to low income families by
US$10 billion and balancing the ensuing federal budget surplus by
increasing the preferential tax treatment of capital gains for individual
taxpayers are examined. We examine how this combined budget-neutral fiscal
policy change affects agricultural production, economy-wide welfare and
the consumption of food. Our results indicate reducing the distortion
between the taxation of capital and labour increases economy-wide
efficiency leading to increased consumption of food by all income classes.
Although economy-wide food expenditures increase, offsetting the revenue
shortfall from a reduced capital tax by decreasing transfers to low income
families reduces food expenditures for the two lowest income groups by
nearly US$1 billion.
Journal: Applied Economics
Pages: 1373-1382
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323256
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323256
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1373-1382
Template-Type: ReDIF-Article 1.0
Author-Name: Meher Manzur
Author-X-Name-First: Meher
Author-X-Name-Last: Manzur
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Author-Name: Inn-Chau Chee
Author-X-Name-First: Inn-Chau
Author-X-Name-Last: Chee
Title: Measuring international competitiveness: experience from East Asia
Abstract:
This paper uses a new measure of real exchange rates as an indicator of
international competitiveness. This new measure involves defining all
prices and exchange rates on an appropriately weighted basket of
currencies rather than a single currency. The measure is applied to the
data for Japan, Korea, Thailand, Malaysia and Singapore. For comparison
purposes, we calculate real exchange rates based on purchasing power
parity (PPP) for these countries. To check for the relative performance of
the two measures, cointegration tests are employed. The results indicate
that the new measure tends to be closely related with the export growth
for the sample countries, while the PPP-based measure is not. Moreover,
the PPP-based real exchange rates tend to understate the measures of
competitiveness for these countries. This result has important
implications in terms of the levels of these countries' exchange rates as
well as the well-known Balassa hypothesis.
Journal: Applied Economics
Pages: 1383-1391
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323265
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323265
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1383-1391
Template-Type: ReDIF-Article 1.0
Author-Name: John Barkoulas
Author-X-Name-First: John
Author-X-Name-Last: Barkoulas
Author-Name: Christopher Baum
Author-X-Name-First: Christopher
Author-X-Name-Last: Baum
Author-Name: Mustafa Caglayan
Author-X-Name-First: Mustafa
Author-X-Name-Last: Caglayan
Title: Fractional monetary dynamics
Abstract:
We test for fractional dynamics in US monetary series, their various
formulations and components, and velocity series. Using the spectral
regression method, we find evidence of a fractional exponent in the
differencing process of the monetary series (both simple-sum and Divisia
indices), in their components (with the exception of demand deposits,
savings deposits, overnight repurchase agreements, and term repurchase
agreements), and the monetary base and money multipliers. No evidence of
fractional behaviour is found in the velocity series. Granger's (Journal
of Econometrics, 25, 1980) aggregation hypothesis is evaluated and
implications of the presence of fractional monetary dynamics are drawn.
Journal: Applied Economics
Pages: 1393-1400
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323274
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323274
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1393-1400
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Vanhoudt
Author-X-Name-First: Patrick
Author-X-Name-Last: Vanhoudt
Title: Are public and private outlays for physical and knowledge capital accumulation equally productive?
Abstract:
This paper aims at obtaining empirically tentative answers to at least
two questions of importance in the macroeconomic literature: (1) to what
degree are private and public investment in physical and knowledge capital
productive and what is their role in longer-term movements in aggregate
productivity growth? and (2) does increasing the number of capital
components in neoclassical growth regressions drive the share of 'broad'
capital up to one as suggested by new growth theory? We will therefore
rely on specifications derived from a generalized neoclassical growth
model, which are in fact very well reconcilable with the equilibrium
approach in the public economics literature.
Journal: Applied Economics
Pages: 1401-1410
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323283
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323283
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1401-1410
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Dolores Montoya Diaz
Author-X-Name-First: Maria Dolores Montoya
Author-X-Name-Last: Diaz
Title: Extended stay at university: an application of multinomial logit and duration models
Abstract:
In Brazil, few studies have been devoted to proving the existence of and
evaluating the internal inefficiencies of state universities. Such work,
however, is highly important because state higher learning is free and a
great amount of resources is involved in its maintenance. The objective of
this study is to develop empirical models to permit an evaluation of the
factors related to the decision to complete or abandon the course and to
verify whether the duration of the connection to the university is also
related to the same factors. Among the results obtained, the most
important is that the prolonged stay at a state university favours
students whose families could afford their schooling.
Journal: Applied Economics
Pages: 1411-1422
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323292
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323292
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1411-1422
Template-Type: ReDIF-Article 1.0
Author-Name: Raffaele Paci
Author-X-Name-First: Raffaele
Author-X-Name-Last: Paci
Author-Name: Francesco Pigliaru
Author-X-Name-First: Francesco
Author-X-Name-Last: Pigliaru
Title: Is dualism still a source of convergence in Europe?
Abstract:
This paper aims at assessing whether dualism represents a significant
source of the aggregate labour productivity convergence observed across
the European regions in the 1980s. We use a model of the dual economy
based on the work of Dixit (Oxford Economic Papers, 22, 229-34, 1970), and
Mas-Colell and Razin (Oxford Economic Papers, 25, 72-79, 1973) to obtain
hypotheses to be tested in cross-region growth regressions. We use
aggregate and sectoral data for 109 territorial units from 1980 to 1990.
Our cross-section results are consistent with the major predictions of the
dual model. Ignoring dualism as a source of convergence could therefore
lead to inaccurate interpretations of the relative roles played by each of
the forces behind the process, and to inexact assessments of what actions
should be taken- if any- by the European regional policy to help the
process become more pervasive.
Journal: Applied Economics
Pages: 1423-1436
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323300
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323300
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1423-1436
Template-Type: ReDIF-Article 1.0
Author-Name: P. J. Sloane
Author-X-Name-First: P. J.
Author-X-Name-Last: Sloane
Author-Name: H. Battu
Author-X-Name-First: H.
Author-X-Name-Last: Battu
Author-Name: P. T. Seaman
Author-X-Name-First: P. T.
Author-X-Name-Last: Seaman
Title: Overeducation, undereducation and the British labour market
Abstract:
This paper addresses the issue of overeducation and undereducation using
for the first time a British dataset which contains explicit information
on the level of required education to enter a job across the generality of
occupations. Three key issues within the overeducation literature are
addressed. First, what determines the existence of over and undereducation
and to what extent are over and undereducation substitutes for experience,
tenure and training? Second, to what extent are over and undereducation
temporary or permanent phenomena? Third, what are the returns to over and
undereducation and do certain stylized facts discovered for the US and a
number of European countries hold for Britain?
Journal: Applied Economics
Pages: 1437-1453
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323319
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323319
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1437-1453
Template-Type: ReDIF-Article 1.0
Author-Name: Oral Williams
Author-X-Name-First: Oral
Author-X-Name-Last: Williams
Author-Name: Wayne Sandiford
Author-X-Name-First: Wayne
Author-X-Name-Last: Sandiford
Author-Name: Aldrin Phipps
Author-X-Name-First: Aldrin
Author-X-Name-Last: Phipps
Title: Banana price shocks and adjustment within a unified currency area
Abstract:
The paper traces the impact of a shock to banana prices on key
macroeconomic variables for the Windward Islands and the Eastern Caribbean
Central Bank (ECCB) Monetary Union as a whole. Net foreign assets of
Dominica are expected to show the largest decline while those for Grenada
the least. The impact on the net foreign assets of the subregion may be
mitigated by other foreign exchange inflows. In addition there was little
variation in the growth in M1 with the exception of Dominica suggesting
money-output neutrality. Government revenues were not adversely affected
suggesting that the terms of trade shock may be viewed as being temporary
and agents borrow to maintain existing tastes and preferences. This result
hinged on the nexus between government revenue and the reliance on trade
taxes on imports suggesting some ambiguity in the explanation of the
Harberger-Laursen-Meltzer effect.
Journal: Applied Economics
Pages: 1455-1466
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323328
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323328
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1455-1466
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Marc Berk
Author-X-Name-First: Jan Marc
Author-X-Name-Last: Berk
Title: Measuring inflation expectations: a survey data approach
Abstract:
Measures of expected inflation from consumer surveys are derived using a
modification of the Carlson-Parkin probability approach, which does not
assume unbiasedness of expectations, makes use of survey data on expected
future as well as perceived past price developments and allows for time
varying response thresholds. We apply this method to the normal, central-t
and noncentral-t distributions, thereby investigating the effects of
nonnormal peakedness and asymmetry. We find that the effects on expected
inflation of the former are small and of the latter are substantial,
without increasing the accuracy of the expectations, however. Expected and
actual inflation show substantial persistence, and, for most of our
expectations measures, are cointegrated. Furthermore, the forecast error
is stationary, implying weak-form rationality. The co-movement of
currently observed expected inflation measures and the unobserved
12-months-ahead inflation rate is of interest for policy makers, for
example in the direct inflation targeting strategy. Notwithstanding this,
caution is warranted in using them as information variables because the
inflation expected by consumers is no causal determinant of actual future
inflation.
Journal: Applied Economics
Pages: 1467-1480
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323337
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323337
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1467-1480
Template-Type: ReDIF-Article 1.0
Author-Name: Yasushi Ohkusa
Author-X-Name-First: Yasushi
Author-X-Name-Last: Ohkusa
Title: Additional evidence for the career concern hypothesis with uncertainty of the retirement period - the case of professional baseball players in Japan
Abstract:
This paper examines whether the Career Concern Hypothesis, which Gibbons
and Murphy (Journal of Political Economy, 100, 1992) have presented, holds
in the labour market of professional baseball players in Japan. The
hypothesis emphasizes that if workers are concerned about their career, an
optimal compensation contract has two incentives - an explicit incentive
from compensation for current performance and an implicit incentive from
concern about their career - and predicts that the explicit incentive
should be strongest for workers close to retirement because the concern
for their career is weakest for these workers. Incorporating the
uncertainty of the retirement period, evidences are found supporting the
Career Concern Hypothesis.
Journal: Applied Economics
Pages: 1481-1487
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323346
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1481-1487
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Hayo
Author-X-Name-First: Bernd
Author-X-Name-Last: Hayo
Title: Money-output Granger causality revisited: an empirical analysis of EU countries
Abstract:
In this paper, the evidence collected in the large literature on testing
for Granger-causality from money to output is revisited. Using a broad
data base of 14 EU countries plus Canada, the US and Japan, and quarterly
data from the mid 1960s to mid 1990s, a number of hypotheses from this
literature is evaluated. It is found that very few general conclusions can
be sustained. For instance, in most countries it is not the case that the
use of data in levels creates a bias in favour of finding
Granger-causality effects of money on output compared to using
differences. Neither does the significance of money lags decline when
increasing the number of variables included in the model. What appears to
be robust, though, is that allowing for asymmetries clearly increases the
likelihood of finding significant causality effects. Based on the
Granger-causality test results, a number of country groups are obtained
using cluster analysis, which are characterized by a similarly behaviour
with respect to the money-output relation.
Journal: Applied Economics
Pages: 1489-1501
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323355
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323355
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1489-1501
Template-Type: ReDIF-Article 1.0
Author-Name: James Payne
Author-X-Name-First: James
Author-X-Name-Last: Payne
Author-Name: Bradley Ewing
Author-X-Name-First: Bradley
Author-X-Name-Last: Ewing
Author-Name: Erik George
Author-X-Name-First: Erik
Author-X-Name-Last: George
Title: Time series dynamics of US State unemployment rates
Abstract:
This paper examines the time series properties of state and national
unemployment rates. Based upon unit root, variance ratio, and
cointegration tests, as well as Granger-causality and error-correction
model results, several important conclusions can be made. First,
forecasting models that include only levels of unemployment rates may
produce spurious regression results. Second, in the vast majority of
cases, there is no long run co-movement between the aggregate US
unemployment rate and individual state unemployment rates. Third, models
that are specified in first-differences generally yield reliable insights
into state-national unemployment relationships.
Journal: Applied Economics
Pages: 1503-1510
Issue: 11
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323364
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323364
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Handle: RePEc:taf:applec:v:31:y:1999:i:11:p:1503-1510
Template-Type: ReDIF-Article 1.0
Author-Name: Suk-Joong Kim
Author-X-Name-First: Suk-Joong
Author-X-Name-Last: Kim
Title: Do macro-economic news announcements affect the volatility of foreign exchange rates? Some evidence from Australia
Abstract:
This paper investigates the role of Australian macro-economic
announcement news on five major Australian dollar (AUD) exchange rates.
Specifically, the daily changes of the exchange rates are modelled to
ascertain the existence and the nature of the news effects in the
conditional mean and variance of the changes. It is found that a higher
than expected current account deficit and unemployment rate announcements
depreciated the AUD, and an unexpectedly higher GDP growth announcement
appreciated it. Current account deficit, CPI and unemployment news
announcements significantly raised the conditional volatility of the
changes of the AUD on the days of their announcements, except for the
BP/AUD for the CPI news, and there is some evidence of retail sales news
reducing it. In general, the evidence is consistent with a view that a
release of new information creates uncertainty in the markets due to a
lack of consensus on the effects of the particular news announcement and
the necessary course of action. In addition, the EGARCH(1,1)-in-Mean
modelling of the daily changes of the exchange rates is found to be very
successful in addressing the observed statistical properties of the daily
changes: leptokurtosis, time-varying heteroscedasticity and asymmetric
response of the conditional volatility to unexpected changes.
Journal: Applied Economics
Pages: 1511-1521
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323030
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323030
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1511-1521
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Cameron
Author-X-Name-First: Samuel
Author-X-Name-Last: Cameron
Author-Name: Alan Collins
Author-X-Name-First: Alan
Author-X-Name-Last: Collins
Author-Name: Neill Thew
Author-X-Name-First: Neill
Author-X-Name-Last: Thew
Title: Prostitution services: an exploratory empirical analysis
Abstract:
This study provides an empirical analysis of the market for some male
prostitution services in the UK. Flexible working hours, part-time
working, and multiple job holding are considered as important labour
market characteristics in this service sector. Statistical models helping
explain the provision of a deviant and a more mainstream sexual service is
reported, utilizing cross-section data drawn from individual prostitute
advertisements. The significance of various declared intrinsic endowments
of the prostitutes are examined in relation to the offer of these
services, including age, ethnicity, physique, and masculine demeanour.
Journal: Applied Economics
Pages: 1523-1529
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323049
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323049
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1523-1529
Template-Type: ReDIF-Article 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Author-Name: Ping Wang
Author-X-Name-First: Ping
Author-X-Name-Last: Wang
Author-Name: Neville Topham
Author-X-Name-First: Neville
Author-X-Name-Last: Topham
Title: Relative price variability and inflation uncertainty - the UK case
Abstract:
This study applies the time-varying volatility model to UK GDP deflators
and compares it with the traditional inflation uncertainty measurement of
relative price variability. The link between relative price variability
and time-varying volatility is studied and established. Moreover,
inflation uncertainty is found to be highly persistent in duration and
plausibly asymmetric to previous shocks at both disaggregate and aggregate
levels.
Journal: Applied Economics
Pages: 1531-1539
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323058
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323058
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1531-1539
Template-Type: ReDIF-Article 1.0
Author-Name: Beverly Tepper
Author-X-Name-First: Beverly
Author-X-Name-Last: Tepper
Author-Name: Lee Rosenzweig
Author-X-Name-First: Lee
Author-X-Name-Last: Rosenzweig
Title: Assessing the importance of health and nutrition related factors on food demand: a variable preference investigation
Abstract:
The importance of health/nutrition related factors and demographics on
food consumption is assessed based on consumer demand using a variable
preferences approach. Results of the models show that diet-disease,
individual's race, region of residence, urbanization, education, and
perceived importance of taste influence the consumption of various food
groups. Economic and policy implications of the results are discussed in
the paper.
Journal: Applied Economics
Pages: 1541-1549
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323067
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323067
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1541-1549
Template-Type: ReDIF-Article 1.0
Author-Name: Jo-Hui Chen
Author-X-Name-First: Jo-Hui
Author-X-Name-Last: Chen
Author-Name: Martin Williams
Author-X-Name-First: Martin
Author-X-Name-Last: Williams
Title: The determinants of business failures in the US low-technology and high-technology industries
Abstract:
This study investigates the determinants of business failure rates for
low-technology and high-technology manufacturing industries across the
forty-eight contiguous US states over the period 1984 to 1993. The main
focus is on examining the role that some key state fiscal measures and
federal transfer grants to states play in explaining business failure
rates. It is found that regional variations in sales taxes, highway
expenditures, bank loans, university R&D, patents, and outstanding debt
play a statistically significant role in explaining variations in regional
business failure rates. Interestingly, it is found that corporate
development assistance programmes and small business loans tend to improve
small business survival rates for hightechnology industries but they do
not for low-technology industries. Findings also suggest that policymakers
can effectively use local/regional policy instruments to bring the current
business failure rates to the desired level more easily within
hightechnology industry groups than within low-technology industry groups.
Journal: Applied Economics
Pages: 1551-1563
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323076
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323076
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1551-1563
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Tsoukis
Author-X-Name-First: Christopher
Author-X-Name-Last: Tsoukis
Author-Name: Ahmed Alyousha
Author-X-Name-First: Ahmed
Author-X-Name-Last: Alyousha
Title: Implications of intertemporal optimization for house and land prices
Abstract:
The Euler equation is used for the intertemporal allocation of durable
goods in conjunction with a simple model of housing flow supply to derive
implications for the relation between house and land prices. Data from
England and Wales fails a key time series test in this respect. The
rejection of the theory is shown to be mainly due to the specification of
the housebuilding industry: perfect competition makes house prices
cointegrated with land prices and housebuilding costs. There is also
evidence that borrowing constraints impair the validity of the
representative-agent framework for the housing sector.
Journal: Applied Economics
Pages: 1565-1571
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323085
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323085
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1565-1571
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Harris
Author-X-Name-First: Richard
Author-X-Name-Last: Harris
Author-Name: Mary Trainor
Author-X-Name-First: Mary
Author-X-Name-Last: Trainor
Title: Manufacturing industries in Northern Ireland and Great Britain: was there convergence during the 1949-92 period?
Abstract:
This paper uses detailed industry-level data for the UK regions which,
based on the standard cross-sectional regression model, suggests that
'strong' convergence was occurring during the period 1963-92, even though
plotting these data and considering their variation over time would tend
to suggest divergence rather than convergence has dominated. However,
since there are several, rather fundamental drawbacks associated with the
cross-sectional approach, a long time-series of data for Northern Ireland
and Great Britain is used to test for convergence directly, based on
testing for unit roots. The outcome is that more than half of the Northern
Ireland industries considered experienced 'catch-up', while the rest (with
the exception of the Textiles sector) experienced long-run convergence,
i.e. they tracked their counterparts in Great Britain over the period
considered.
Journal: Applied Economics
Pages: 1573-1580
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323094
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323094
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1573-1580
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Author-Name: Yan Peng
Author-X-Name-First: Yan
Author-X-Name-Last: Peng
Title: Measuring the efficiency of search engines: an application of data envelopment analysis
Abstract:
This paper adopted the data envelopment analysis (DEA) method to
investigate the efficiency of several search engines. A query search on a
search engine is modelled as a production process. The input and output
vectors are defined and measured accordingly. We studied seven engines,
Alta Vista, Excite, Hotbot, Lycos, Infoseek, Open Text, and WebCrawler and
found that Alta Vista, Excite, Infoseek, and WebCrawler are efficient but
the other three are not. Possible efficiency improvements are calculated.
Journal: Applied Economics
Pages: 1581-1587
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323102
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323102
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1581-1587
Template-Type: ReDIF-Article 1.0
Author-Name: Theocharoula Magoula
Author-X-Name-First: Theocharoula
Author-X-Name-Last: Magoula
Author-Name: George Psacharopoulos
Author-X-Name-First: George
Author-X-Name-Last: Psacharopoulos
Title: Schooling and monetary rewards in Greece: an over-education false alarm?
Abstract:
The paper uses data from the 1993-94 household survey to investigate a
number of issues stemming from the current educational policy debate in
Greece. Private and social returns to investment in education are
estimated and a test of the screening hypothesis is conducted. No evidence
was found that higher education is being used as a screening device, and
the returns to investment in education have been maintained to just below
their level in the 1960s. The central finding of the paper is that the
fear of further expansion of the university system is highly exaggerated,
and that the economy could absorb even larger amounts of highly educated
manpower. Of course, such expansion could not take place unless there is
an end of the state monopoly on the financing and provision of tertiary
education.
Journal: Applied Economics
Pages: 1589-1597
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323111
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323111
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1589-1597
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Melkersson
Author-X-Name-First: Maria
Author-X-Name-Last: Melkersson
Title: Explaining choice set size for unemployed
Abstract:
From questionnaire data it is evident that the number of alternatives
unemployed workers consider, i.e. their choice set size, varies
substantially. A binomial model is formulated for choice set size, where
individual characteristics are used as explanatory variables for observed
large variation in choice set size. A score-test for overdispersion is
derived. According to an overall test, the model cannot be rejected and
interesting determinants of choice set size variation are found.
Journal: Applied Economics
Pages: 1599-1607
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323120
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323120
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1599-1607
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Saget
Author-X-Name-First: Catherine
Author-X-Name-Last: Saget
Title: Decomposing two values of a binary variable: application to the unemployment differential in Hungary
Abstract:
This paper presents a study of the individual determinants of
unemployment in Hungary. It seeks to understand the reasons why Hungarian
women were, in 1992, less likely to be unemployed than their male
counterparts. It estimates first, the probability of being in the stock of
unemployment and secondly, one particular inflow into unemployment.
Adapting standard discrimination analysis to the case of binary variables,
the paper decomposes the differential in average unemployment rates by
gender. The paper shows that differences in individual endowments account
for very little of the gender gap in the stock of unemployment. On the
other hand, slightly less than half the unemployment gap could come from
differences in one digit occupations and sectors of employment between
male and female employees.
Journal: Applied Economics
Pages: 1609-1621
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323139
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323139
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1609-1621
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Caskie
Author-X-Name-First: Paul
Author-X-Name-Last: Caskie
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Author-Name: Joan Moss
Author-X-Name-First: Joan
Author-X-Name-Last: Moss
Title: The economic impact of BSE: a regional perspective
Abstract:
A regional input-output model, detailing agriculture and its ancillary
sectors, is used to quantify the effects of a BSE-induced reduction in
final demand for beef on the economy of Northern Ireland, a region with
heavy dependence on beef exports. The long-run regional output, income and
employment effects are estimated assuming no market stabilization measures
and taking account of substitution effects in final demand. Predicted net
losses in regional income are 0.5% of regional GDP with job losses of up
to 0.6% of regional employment. About 77% of the income losses and 87% of
the job losses are in the beef sector, primarily beef production.
Compensating gains due to demand substitution effects occur mainly in meat
processing sectors, other than beef, and are relatively small. Adverse
intra-regional distributional effects are likely due to the concentration
of beef production in the more disadvantaged areas. The importance of
appropriate policy responses is highlighted.
Journal: Applied Economics
Pages: 1623-1630
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323148
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323148
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1623-1630
Template-Type: ReDIF-Article 1.0
Author-Name: Patrice Bertail
Author-X-Name-First: Patrice
Author-X-Name-Last: Bertail
Author-Name: France Caillavet
Author-X-Name-First: France
Author-X-Name-Last: Caillavet
Author-Name: Veronique Nichele
Author-X-Name-First: Veronique
Author-X-Name-Last: Nichele
Title: A bootstrapped double hurdle analysis: consumption of home-produced food
Abstract:
This article deals with home-made food. The consumption of such specific
goods involves an important null consumption issue. A two-step procedure
is used to estimate whether the decision to consume is distinct from the
decision on the amount of consumption. Data from the '1991 French Food
Consumption Survey' show the relevance of double hurdle models. Finally,
the estimation of Cragg's model is improved with a new undersampling
procedure. Numerous and sometimes opposite effects of household
characteristics on the probability of consuming home-produced food and on
the amount consumed are obtained.
Journal: Applied Economics
Pages: 1631-1639
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323157
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323157
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1631-1639
Template-Type: ReDIF-Article 1.0
Author-Name: Merih Uctum
Author-X-Name-First: Merih
Author-X-Name-Last: Uctum
Author-Name: Sandra Viana
Author-X-Name-First: Sandra
Author-X-Name-Last: Viana
Title: Decline in the US profit rate: a sectoral analysis
Abstract:
The profit rate is a key element in the cyclical growth of economies
because of its effect on investment and saving behaviour and, therefore,
on capacity, productivity and competitiveness. The US industry profit
rates have declined dramatically since the 1950s. This decline is analysed
and the factors that explain it are determined. It is found that sectoral
factor productivities and real factor prices account for most of this
decline. The real wage has a stronger effect on manufacturing profit
rates, while the real capital price explains better profitability in
nonmanufacturing industries. A rise in both factor prices reduces the
profit rates during the 1960s and the 1970s. After 1980, a fall in the
real price of capital with a sustained improvement in technology account
for the stabilization of the declining trends in sectoral profit rates.
Breaking with the trends in other industries, technology accounts for most
of the decline in the finance, insurance and real estate sector throughout
the sample.
Journal: Applied Economics
Pages: 1641-1652
Issue: 12
Volume: 31
Year: 1999
X-DOI: 10.1080/000368499323166
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368499323166
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Handle: RePEc:taf:applec:v:31:y:1999:i:12:p:1641-1652
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Richaud
Author-X-Name-First: Christine
Author-X-Name-Last: Richaud
Author-Name: Aristomene Varoudakis
Author-X-Name-First: Aristomene
Author-X-Name-Last: Varoudakis
Author-Name: Marie-Ange Veganzones
Author-X-Name-First: Marie-Ange
Author-X-Name-Last: Veganzones
Title: Real exchange rate and openness in emerging economies: Argentina in the long run
Abstract:
Argentina's economic policies since the beginning of the century, provide
an interesting background to the study of real exchange rate (RER)
management in emerging countries. In this article, four types of RER
overvaluation are identified. In the 1920s, Argentina provides a short
example of overvaluation in the context of a fixed exchange rate policy.
Moreover, estimations show that import substitution regimes can lead to a
misalignment of RER. Argentina illustrates also the difficult management
of RER in a volatile environment. Results allow, in addition, a better
understanding of the failure of the trade liberalization attempts of the
country and reminds one that successfully integrating the world economy
requires an appropriate RER policy.
Journal: Applied Economics
Pages: 1-11
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322930
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322930
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:1-11
Template-Type: ReDIF-Article 1.0
Author-Name: Ky-Hyang Yuhn
Author-X-Name-First: Ky-Hyang
Author-X-Name-Last: Yuhn
Author-Name: Jene Kwon
Author-X-Name-First: Jene
Author-X-Name-Last: Kwon
Title: Economic growth and productivity: A case study of South Korea
Abstract:
The economic performance that South Korea has achieved over the past
quarter century is often likened to a 'miracle'. Recently, much interest
has been expressed in the driving forces behind the Korean economic
transformation. Using the valueadded measure of output, Christiansen and
Cummings have shown that technology measured by TFP accounts for about 43%
of Korean economic growth between 1960 and 1973. This figure is
considerably high compared with recent major studies on Japanese and
Singaporean economic growth. We found that the value-added framework is
not appropriate for the description of the structure of the Korean economy
and re-examined the sources of Korean economic growth, using the
gross-output framework. Surprisingly, it has been discovered that only 7%
of real output growth in the manufacturing sector during the 1962-1981
period is attributable to technological progress. These findings parallel
those for the Japanese and Singapore economies.
Journal: Applied Economics
Pages: 13-23
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322949
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322949
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:13-23
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Leong
Author-X-Name-First: Kenneth
Author-X-Name-Last: Leong
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Title: Testing long-run neutrality using intra-year data
Abstract:
Previous tests of the long-run neutrality hypothesis have generally
relied on annual time series data. This paper analyses the long-run
neutrality of money in Australia using different sources of intra-year
data, which permits an examination of the effects of seasonality and the
robustness of previous empirical results. A reduced form ARIMA model is
used with both quarterly seasonally unadjusted and adjusted Australian
real GDP and nominal money supply to test the neutrality hypothesis. Using
two measures of money stock, namely M1 and M3, it is shown that the
hypothesis is supported using M1 as the measure of money supply, while it
is rejected using M3. Recent trends and developments in the money and
credit markets in Australia provide a possible explanation of the
sensitivity of the outcome to the measure of money stock employed in the
analysis.
Journal: Applied Economics
Pages: 25-37
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322958
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322958
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:25-37
Template-Type: ReDIF-Article 1.0
Author-Name: Hoe-Kyung Lee
Author-X-Name-First: Hoe-Kyung
Author-X-Name-Last: Lee
Author-Name: Moon-Kee Kong
Author-X-Name-First: Moon-Kee
Author-X-Name-Last: Kong
Title: Consumption of durable goods and tests of the permanent income hypothesis: evidence from Korean macro data
Abstract:
Quarterly aggregate data from Korean urban households is used to test the
restrictions on the vector autoregressive (VAR) representation of the
permanent income hypothesis (PIH). In testing these restrictions, an
alternative consumption measure is proposed which takes account of the
flow of services from durable goods. For comparison, two commonly used
measures - total consumption expenditures and expenditures on non-durables
and services - are also employed in the empirical analysis, and the
results show that the choice of consumption measures could have a
significant effect on the results of the tests, leading to a false
conclusion with the improper consumption variables.
Journal: Applied Economics
Pages: 39-44
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322967
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322967
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:39-44
Template-Type: ReDIF-Article 1.0
Author-Name: Iain Fraser
Author-X-Name-First: Iain
Author-X-Name-Last: Fraser
Title: An application of maximum entropy estimation: the demand for meat in the United Kingdom
Abstract:
In many econometric studies of demand relationships the design matrix is
frequently subject to severe collinearity. In this paper the Generalized
Maximum Entropy methodology is introduced and used to estimate a set of
demand relationships. The ability of Generalized Maximum Entropy to
estimate economic relationships that are typically subject to a high
degree of collinearity among the explanatory variables, thus potentially
causing traditional methods of estimation to be unreliable, is explained.
The results derived by this alternative method of estimation, for a UK
meat demand data set, are analysed and examined. The potential for this
emerging estimation methodology is discussed.
Journal: Applied Economics
Pages: 45-59
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322976
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322976
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:45-59
Template-Type: ReDIF-Article 1.0
Author-Name: Adriaan Kalwij
Author-X-Name-First: Adriaan
Author-X-Name-Last: Kalwij
Title: Estimating the economic return to schooling on the basis of panel data
Abstract:
This paper is concerned with estimating the economic return to schooling
of men in the Netherlands. An IV approach is adopted to estimate a panel
data model with random individual effects. The fact that older individuals
have relatively less schooling than younger individuals is exploited to
construct instruments, and GNP per worker at the time an individual turned
16 is included to control for birth-cohort effects. The estimated return
to schooling is about 15%. Ignoring the endogeneity of schooling results
in a lower return to schooling. Ignoring birth-cohort effects results in a
lower return to work experience.
Journal: Applied Economics
Pages: 61-71
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322985
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322985
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:61-71
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Kempa
Author-X-Name-First: Bernd
Author-X-Name-Last: Kempa
Title: Excess volatility of real exchange rates in the EMS: some evidence from structural VARs
Abstract:
This paper argues that the effectiveness of the exchange rate mechanism
(ERM) of the European Monetary System (EMS) should be gauged by its impact
on the monetary component of real exchange rate variability. Nominal and
real shocks are separated using a bivariate structural VAR applied to real
exchange rate data of the six original member countries participating in
the ERM and a control group consisting of Britain and the United States.
The findings suggest that monetary shocks have been an important source of
real exchange rate variability and that the ERM has been successful in
reducing the incidence of monetary shocks across its member countries
prior to the EMS currency crises of 1992-93, while being less successful
thereafter.
Journal: Applied Economics
Pages: 73-79
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322994
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322994
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:73-79
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Title: The control of politicians within a constitutional framework: the case of state-level recall provisions
Abstract:
As previously recognized, the structure of representative democracy is
endogenous and the choice of constitutional provisions selected by such
organizations is important. The present paper focuses on constitutional
choices that work to control the behaviour of elected officials by
examining the constitutional ease of recalling elected officials across
the 50 states. After developing a numerical measure of the 'ease' with
which registered voters can recall officials, ordinary logistic, ordered
logistic and tobit models are employed to examine the factors of such an
endogenous choice across states. The results are quite consistent with the
theoretical models developed previously by public choice and
constitutional scholars.
Journal: Applied Economics
Pages: 81-89
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400323001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400323001
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:81-89
Template-Type: ReDIF-Article 1.0
Author-Name: Aklilu Zegeye
Author-X-Name-First: Aklilu
Author-X-Name-Last: Zegeye
Author-Name: Larry Rosenblum
Author-X-Name-First: Larry
Author-X-Name-Last: Rosenblum
Title: Measuring productivity in an imperfect world
Abstract:
Most measures of multifactor productivity (MFP) assume constant returns
to scale and perfect competition. Using a general aggregate production
function together with duality theory and allowing for the possibilities
of disequilibrium, markups and economies of scale, the study derives a
more generalized MFP measure. The model was used to assess the economic
performance in US manufacturing for the 1949 to 1988 period. The results
suggest that scale and markups have substantial power in explaining MFP
growth for all periods and that half of the measured MFP growth (as
measured within the conventional framework) comes from biases due to scale
economies, market power, and interaction effects.
Journal: Applied Economics
Pages: 91-104
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400323010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400323010
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:91-104
Template-Type: ReDIF-Article 1.0
Author-Name: Edgar Morgenroth
Author-X-Name-First: Edgar
Author-X-Name-Last: Morgenroth
Title: Exchange rates and trade: the case of Irish exports to Britain
Abstract:
This paper examines the effect of changes in the Punt/Sterling exchange
rate on exports from Ireland to Britain. The approach used here differs
significantly from that used in most other studies in that the long-run
neutrality of the Punt/Sterling exchange rate with regard to exports from
Ireland to Britain is tested using a recently developed technique. There
is strong evidence that the exchange rate is neutral in the long run.
Journal: Applied Economics
Pages: 107-110
Issue: 1
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400323029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400323029
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Handle: RePEc:taf:applec:v:32:y:2000:i:1:p:107-110
Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Fan Chung
Author-X-Name-First: Ching-Fan
Author-X-Name-Last: Chung
Author-Name: Mao-Wei Hung
Author-X-Name-First: Mao-Wei
Author-X-Name-Last: Hung
Title: A general model for short-term interest rates
Abstract:
A general one-factor model for short-term interest rates is proposed.
Besides the long memory fractionally integrated mean process, the model
also consists of a power function of the interest rate as well as the
GARCH effect in the conditional variance. The estimation results show
that, while there is no evidence for fractional integration in the mean
beyond the well-known martingale property, both the power function of the
interest rate and the GARCH effect (but not the ARCH effect) are highly
significant in the formation of the conditional variance. Test results
also confirm a structure change in October 1979 due to the shift in the
Federal Reserve monetary policy.
Journal: Applied Economics
Pages: 111-121
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322813
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:111-121
Template-Type: ReDIF-Article 1.0
Author-Name: Costas Milas
Author-X-Name-First: Costas
Author-X-Name-Last: Milas
Title: Employment, output and political business cycle effects in the Greek non-tradable sector
Abstract:
Starting from a theoretical model with traded and non-traded goods, a
long-run labour demand equation is identifed, with employment being
proportional to relative output and prices. Using Greek data, the model
supports weak exogeneity of relative prices and fiscal expansion with
respect to the long-run parameters in the cointegrating space. It also
highlights structural rigidities in the functioning of the Greek labour
market. Political business cycle and partisan effects are shown to affect
the short-run employment decisions.
Journal: Applied Economics
Pages: 123-133
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322822
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322822
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:123-133
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Ross
Author-X-Name-First: Kevin
Author-X-Name-Last: Ross
Title: Post-stabilization inflation dynamics in Slovenia
Abstract:
This paper investigates the inflation process in Slovenia through an
examination of some commonly used determinants of inflation in transition
economies. Granger causality tests and an analysis of unrestricted VAR
models suggest a strong linkage between both growth in broader monetary
aggregates and changes in the tolar-deutsche mark exchange rate on retail
price inflation. While the growth in wages affects inflation, it appears
that both changes in the exchange rate and growth in monetary aggregates
provide the initial impulse. A discussion of the present money-exchange
rate policy framework and its influence on inflation is also provided.
Journal: Applied Economics
Pages: 135-149
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322831
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322831
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:135-149
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Arghyrou
Author-X-Name-First: Michael
Author-X-Name-Last: Arghyrou
Title: EU participation and the external trade of Greece: an appraisal of the evidence
Abstract:
This paper investigates the trade effects caused by the accession of
Greece to the EU. A large part of the analysis is in terms of trade flows
disaggregated by the 21 categories of the Greek Tariff Schedule. These
series are original data sets which have been constructed by the author to
be used here for the first time. The main message is that after 1981
events took a turn closer to the pessimistic pre-accession predictions.
Our findings indicate that during the post-integration period the external
trade of Greece has been reoriented towards the EU countries and Greece
lost part of its comparative advantage in those sectors in which such an
advantage exists. We also suggest that as far as imports are concerned, EU
participation has caused gross trade creation for imports from the EU
countries and gross trade diversion for imports from the Rest of the
World. As far as exports are concerned, the results indicate that EU
participation has caused only a modest increase in Greek exports to the EU
market.
Journal: Applied Economics
Pages: 151-159
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322840
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322840
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:151-159
Template-Type: ReDIF-Article 1.0
Author-Name: Gillian McCallion
Author-X-Name-First: Gillian
Author-X-Name-Last: McCallion
Author-Name: J. Colin Glass
Author-X-Name-First: J. Colin
Author-X-Name-Last: Glass
Author-Name: Robert Jackson
Author-X-Name-First: Robert
Author-X-Name-Last: Jackson
Author-Name: Christine Kerr
Author-X-Name-First: Christine
Author-X-Name-Last: Kerr
Author-Name: Donal McKillop
Author-X-Name-First: Donal
Author-X-Name-Last: McKillop
Title: Investigating productivity change and hospital size: a nonparametric frontier approach
Abstract:
The study obtains measures of the productive efficiency of 'larger' and
'smaller' Northern Ireland hospitals during the 1986-92 pre-Trust period.
The measures provide insights into how these hospitals were responding to
the pressures for increased efficiency prior to Trust status. They also
constitute a useful benchmark for evaluating productivity change under the
post-1992 Trust status environment. A nonparametric frontier approach is
used to measure productivity change and to decompose this into technical
change (or shifts in the best practice frontier) and efficiency change (or
change in how far a hospital is from the frontier). The latter change in
efficiency is also decomposed into changes in scale efficiency, pure
technical efficiency and input congestion. The findings indicate that
smaller hospitals, starting from a less efficient base, achieved greater
productivity gains than larger hospitals over 1986-92. For smaller
hospitals, this was due to progressive shifts in the best practice
frontier outweighing a substantial decline in efficiency. This decline was
found to be due to a deterioration in scale efficiency over the period.
The results overall support the current policy view that larger hospitals
are more efficient than smaller hospitals in providing health care
services.
Journal: Applied Economics
Pages: 161-174
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322859
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322859
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:161-174
Template-Type: ReDIF-Article 1.0
Author-Name: K. Van Montfort
Author-X-Name-First: K.
Author-X-Name-Last: Van Montfort
Author-Name: Th. Doodeman
Author-X-Name-First: Th.
Author-X-Name-Last: Doodeman
Author-Name: J. H. S. Lobregt
Author-X-Name-First: J. H. S.
Author-X-Name-Last: Lobregt
Author-Name: W. S. Zwinkels
Author-X-Name-First: W. S.
Author-X-Name-Last: Zwinkels
Title: Effects of reintegration activities on the Dutch labour market, regarding several levels of education
Abstract:
In the Netherlands during the early nineteen nineties social security
administration offices and labour exchange offices decided to co-operate.
Goal of this cooperation is to support the reintegration of unemployed
people into the labour market and to shorten the individual spells of
unemployment. As a result of the cooperation information is available
about levels of education of the unemployed. This article primarely
focuses on the effects of reintegration activities on the duration of
unemployment for different levels of education. Results of the analysis
are compared with the human capital theory. Also the question is discussed
whether within the framework of the cooperation persons with a higher
level of education have shorter spells of unemployment. Finally there is
an analysis of the effects of activities undertaken by the unemployed
themselves to find a job. People with a university degree have significant
longer spells of unemployment. The reintegration activities of the social
security administration offices shorten unemployment durations
significantly for this group only. Activities undertaken by the unemployed
themselves shorten the spells of unemployment for lower educated people
(only primary education) and for persons with higher general
secondary/secondary/intermediate vocational education as highest completed
education.
Journal: Applied Economics
Pages: 175-182
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322868
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322868
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:175-182
Template-Type: ReDIF-Article 1.0
Author-Name: Roderick Hill
Author-X-Name-First: Roderick
Author-X-Name-Last: Hill
Author-Name: Muhammed Kabir
Author-X-Name-First: Muhammed
Author-X-Name-Last: Kabir
Title: Currency demand and the growth of the underground economy in Canada, 1991-1995
Abstract:
The extent to which the recent introduction of a value-added tax in
Canada contributed to the growth of the underground economy remains
controversial. If underground economy growth led to increased currency
holdings and shifted the currency demand function, forecasts for the
period after the introduction of the tax should tend to underestimate
currency holdings. Using a cointegration-based error correction mechanism
in vector autoregression models, currency demand is estimated using
quarterly data for 1968-1990 and dynamic forecasts are made for 1991-1995.
On average, currency demand is underpredicted, but by a small amount. The
results are consistent with an increase in the underground economy of
between 0.01 and 0.3% of GDP as a result of the new tax. If changes in
marginal direct tax rates are considered, the underground economy may have
grown between 0.1 and 0.7% of GDP in 1991-1995.
Journal: Applied Economics
Pages: 183-192
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322877
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322877
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:183-192
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Tomkins
Author-X-Name-First: J. M.
Author-X-Name-Last: Tomkins
Author-Name: J. Twomey
Author-X-Name-First: J.
Author-X-Name-Last: Twomey
Title: Occupational mobility in England
Abstract:
This paper examines evidence on occupational movement in England using
data from the New Earnings Panel Dataset. Although most occupations are
characterized by a high degree of immobility, there is some evidence of an
increase in occupational mobility between 1990 and 1994. Using a compound
Poisson modelling approach for count data combined with a gravity model,
the paper investigates the incentives and constraints upon aggregate
movement between occupations over two time periods, 1985-90 and 1990-94.
Results suggest that the responsiveness of movement into a wide range of
occupations as a result of a rise in wages is relatively elastic for males
and relatively inelastic for females. The paper also demonstrates that
significant barriers to movement exist, which either prevent a response to
market signals or inhibit the extent of that response.
Journal: Applied Economics
Pages: 193-209
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322886
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322886
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:193-209
Template-Type: ReDIF-Article 1.0
Author-Name: Sari Pekkala
Author-X-Name-First: Sari
Author-X-Name-Last: Pekkala
Title: Aggregate economic fluctuations and regional convergence: the Finnish case 1988-95
Abstract:
This paper analyses the connection between aggregate economic
fluctuations and regional productivity convergence in Finland during the
period 1988-95. Markov chain transition matrices and mobility indices were
used to examine the regional distribution of productivity. The results
indicated that high intra-distribution mobility occurred during booms,
when regional convergence potential was also at its highest. Conversely,
recession years were characterized by much lower mobility and a more
divergent regional pattern. These findings bear important implications in
terms of regional policy planning, as it seems that poor regions do not
manage to keep up with the rich ones during slumps, whereas regional
disparities diminish naturally during boom years.
Journal: Applied Economics
Pages: 211-219
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322895
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:211-219
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Parker
Author-X-Name-First: Simon
Author-X-Name-Last: Parker
Title: Opening a can of worms: the pitfalls of time-series regression analyses of income inequality
Abstract:
This paper argues that time-series regression analysis is of only very
limited use for understanding the determinants of income inequality. The
argument is based on a combination of results from the time series
econometrics literature and several characteristics of inequality itself,
principally nonstationarity of the data in most inequality regression
models, and the weak theoretical foundations underlying the models. A
sample of postwar US data is used to illustrate the problems involved.
Journal: Applied Economics
Pages: 221-230
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322903
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322903
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:221-230
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Ellis
Author-X-Name-First: Michael
Author-X-Name-Last: Ellis
Author-Name: D. Eric Schansberg
Author-X-Name-First: D. Eric
Author-X-Name-Last: Schansberg
Title: The determinants of tenure on the Federal Reserve Board of Governors: should I stay or should I go?
Abstract:
This paper examines the quit behaviour of members of the Federal Reserve
Board of Governors. We find that the probability of a member continuing is
lower when the member is an economist, when the member comes to the Board
from the private sector, and when their policy views differ from the Board
as a whole. In addition, we find evidence that the President can exert
influence on the Fed by the power of appointment. And in contrast with
what one might expect, we find that salaries on the Board relative to the
private sector do not seem to be an important factor in determining the
decision to continue service on the Board.
Journal: Applied Economics
Pages: 231-237
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322912
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322912
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:231-237
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Barrett
Author-X-Name-First: Christopher
Author-X-Name-Last: Barrett
Author-Name: Aliakbar Olia
Author-X-Name-First: Aliakbar
Author-X-Name-Last: Olia
Author-Name: Dee Von Bailey
Author-X-Name-First: Dee
Author-X-Name-Last: Von Bailey
Title: Subdiscipline-specific journal rankings: whither Applied Economics?
Abstract:
In light of widespread specialization of research and teaching, it seems
appropriate to supplement the existing general rankings of economics
journals with subdiscipline-specific rankings. That is the primary
objective of this paper. The availability of subdiscipline-specific
rankings also permits both (i) alternative journal ranking methods for the
general discipline that account for the breadth of a journal's impact
across specialized fields, and (ii) estimation of the relative weights
implicitly associated with each field in traditional disciplinary journal
rankings. The results are robust to the exclusion of self-citations.
Journal: Applied Economics
Pages: 239-252
Issue: 2
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322921
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322921
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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:239-252
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Skoorka
Author-X-Name-First: Bruce
Author-X-Name-Last: Skoorka
Title: Measuring market distortion: international comparisons, policy and competitiveness
Abstract:
This paper develops a framework to simultaneously estimate production
possibility frontiers and measure distortions in factor and product
markets. The econometric results, based on a panel of 61 countries over
the period 1970 through 1985, reveal very little distortion in factor
markets but considerable distortion in product markets. In addition, the
distortions tend to vary with the cyclical behaviour of economic activity.
Further, the results suggest that in order to improve efficiency,
commercial policy should aim at reducing product-market distortions rather
than factor-market ones.
Journal: Applied Economics
Pages: 253-264
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322688
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322688
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:253-264
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Aguirre
Author-X-Name-First: Antonio
Author-X-Name-Last: Aguirre
Author-Name: Luis Antonio Aguirre
Author-X-Name-First: Luis Antonio
Author-X-Name-Last: Aguirre
Title: Time series analysis of monthly beef cattle prices with nonlinear autoregressive models
Abstract:
This paper analyses the dynamics underlying a time series of the monthly
average beef cattle price received by producers in the State of Sao Paulo
(Brazil). The time series under study records monthly prices since 1954.
An exploratory analysis suggested that after a period of intense
government intervention in the cattle and beef markets, the underlying
dynamics seem to be settling to a pattern similar to the one observed
prior to that period. In order to try to verify if the underlying dynamics
after the interventionist phase are similar to those in former times, a
forecasting procedure has been used based on nonlinear autoregressive
models. This tye of models were used after the BDS test showed significant
results which can be interpreted as nonlinearities in the data. The
results discussed in the paper seem to suggest that after a period of
intense interventions that lasted over two decades, the current underlying
dynamics are close (from a forecasting point of view) to those observed
more than thirty years ago.
Journal: Applied Economics
Pages: 265-275
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322697
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:265-275
Template-Type: ReDIF-Article 1.0
Author-Name: Basil Dalamagas
Author-X-Name-First: Basil
Author-X-Name-Last: Dalamagas
Title: Public sector and economic growth: the Greek experience
Abstract:
Over the past two decades there has been an increase in the relative size
of the public sector, accompanied by a decline in the growth performance
of the Greek economy. In an attempt to highlight the contribution of the
government size to growth, an analytical framework is developed,
incorporating the possibility that marginal factor productivities are not
equal in the public and private sectors. Econometric analysis utilizing
this framework points to a negative relationship between government size
and economic growth. This seems to derive, in part, from intersectoral
diseconomies generated by the growing share of deft-financed government
activities.
Journal: Applied Economics
Pages: 277-288
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322705
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322705
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:277-288
Template-Type: ReDIF-Article 1.0
Author-Name: Hossein Jalilian
Author-X-Name-First: Hossein
Author-X-Name-Last: Jalilian
Author-Name: Matthew Odedokun
Author-X-Name-First: Matthew
Author-X-Name-Last: Odedokun
Title: Equipment and non-equipment private investment: a generalized Solow model
Abstract:
The study is an empirical attempt to shed light on which categories of
private fixed investment could be relied on to provide the greatest
stimulus to economic growth. Panel data, comprising 5-year periodic data
over the period 1965-90 pooled across 55 countries, are employed in
estimating the model through the fixed-effect technique. In addition to
human capital investment ratio, five categories of private fixed
investment ratios are tested for. Findings suggest that not all types of
investments are conducive to growth.
Journal: Applied Economics
Pages: 289-296
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322714
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322714
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:289-296
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Title: Frequency domain and time series properties of asymmetric error correction terms
Abstract:
The now familiar error correction model has recently been extended to
allow for the modelling of asymmetric behaviour, resulting in the
development of the asymmetric error correction model. Previous workers
have undertaken studies upon which the 'classic', implicitly symmetric,
error correction model was developed. It was found that the Escribo-Pfann
method approach detected significant asymmetries while the Granger-Lee did
not. In this paper the properties of the alternative methods are analysed
in detail to examine why one method met with success, but not the other.
Via the use of estimated sample spectral densities and correlograms, a
significant property of the Granger-Lee method is uncovered. This
property, particularly relevant in application to consumers' expenditure,
has a wider relevance, helping explain why the approach has met with
limited success.
Journal: Applied Economics
Pages: 297-304
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322723
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322723
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:297-304
Template-Type: ReDIF-Article 1.0
Author-Name: Werner Smolny
Author-X-Name-First: Werner
Author-X-Name-Last: Smolny
Title: Sources of productivity growth: an empirical analysis with German sectoral data
Abstract:
Many theoretical analyses of the sources of economic growth focus on
knowledge spillovers and scale economies to explain growth endogenously.
The contribution of this paper is to shed some light on these arguments by
an empirical investigation based on a production function framework.
Sectoral production functions are estimated with annual German data of 51
sectors from 1960-90. The estimates reveal that both a pure Solow growth
model and a Solow model augmented with human capital cannot account for
the observed productivity increases. The model should be extended by
allowing for inter-industry spillovers and scale economies at the
aggregate level, as well as for scale economies associated with human
capital at the sectoral level. The business cycle affects observed
productivity changes in the short run and in the long run.
Journal: Applied Economics
Pages: 305-314
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322732
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322732
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:305-314
Template-Type: ReDIF-Article 1.0
Author-Name: David Forrest
Author-X-Name-First: David
Author-X-Name-Last: Forrest
Author-Name: O. David Gulley
Author-X-Name-First: O. David
Author-X-Name-Last: Gulley
Author-Name: Robert Simmons
Author-X-Name-First: Robert
Author-X-Name-Last: Simmons
Title: Testing for rational expectations in the UK National Lottery
Abstract:
The concept of rational expectations has typically been assumed, without
testing, in the analysis of consumer demand and market efficiency in
betting markets, including betting on lottery games. Lottery games offer
an excellent opportunity to test how participants process the information
that is available to them. Using the UK National Lottery as our particular
case, we find that participants, in general, efficiently process available
information. Specifically, they act as if they can, on average, forecast
the level of sales for a given drawing.
Journal: Applied Economics
Pages: 315-326
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322741
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322741
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:315-326
Template-Type: ReDIF-Article 1.0
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Author-Name: Rodney Paul
Author-X-Name-First: Rodney
Author-X-Name-Last: Paul
Author-Name: Roberto Garcia
Author-X-Name-First: Roberto
Author-X-Name-Last: Garcia
Title: Income effects on the trade balance in small open economies
Abstract:
The objective is to determine the causes of the countercyclicality of the
trade balance in five small open economies, namely Austria, France, Italy,
Spain, and Switzerland. In order to investigate the role of permanent and
temporary changes in income in the determination of the trade balance,
Blanchard-Quah variance decomposition procedure is applied. The results of
analysis support the conclusion that transitory income shocks are major
reasons for the change in the trade balance, and that negative correlation
between the trade balance and income is primarily due to transitory
shocks. Thus, these results are more consistent with intertemporal models
with the dichotomous view in which the aggregate demand shocks are
responsible for cyclical variations in the trade balance and income and
aggregate supply is responsible for the long-run growth of the economy.
Journal: Applied Economics
Pages: 327-333
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322750
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:327-333
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Pagan
Author-X-Name-First: Jose
Author-X-Name-Last: Pagan
Author-Name: Jose Tijerina-Guajardo
Author-X-Name-First: Jose
Author-X-Name-Last: Tijerina-Guajardo
Title: Increasing wage dispersion and the changes in relative employment and wages in Mexico's urban informal sector: 1987-1993
Abstract:
This study analyses the role of changes in informal/formal relative
employment, wage levels and wage inequality in explaining increasing wage
dispersion in Mexico during the 1987-1993 period. From 1987 to 1993, the
variance of the log of hourly wages for Mexican workers increased by more
than 50 per cent. Using data from the Encuesta nacional de empleo urbano
we find that this increase in the overall wage dispersion was mainly
driven by increasing wage dispersion in the formal sector coupled with a
faster growth in formal sector employment as a percentage of total
employment. However, compression in the distribution of wages within the
informal sector contributed to substantially slowdown the increasing
overall wage inequality. About 60 per cent of the 1987-1993 4.65
percentage point reduction in the informal sector share of total
employment is explained by changes in the structure that determines
sectoral employment; the rest is explained by changes in the composition
of the labour force, particularly increases in the sectoral education gap
and a change in the regional relative share of sectoral employment. Also,
from 1987 to 1993 the sectoral wage ratio increased from 0.59 to 0.63. It
seems that a relative improvement in unobserved skills in the informal
sector helped to close the wage differential but this effect was partially
offset by an increase in the relative prices of both observed and
unobserved skills, as well as increases in relative observed skills in the
formal sector, particularly education.
Journal: Applied Economics
Pages: 335-347
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322769
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322769
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:335-347
Template-Type: ReDIF-Article 1.0
Author-Name: Arne Nygaard
Author-X-Name-First: Arne
Author-X-Name-Last: Nygaard
Author-Name: Ingunn Myrtveit
Author-X-Name-First: Ingunn
Author-X-Name-Last: Myrtveit
Title: Moral hazard, competition and contract design: empirical evidence from managerial, franchised and entrepreneurial businesses in Norway
Abstract:
Agency theory emphasizes the role of ownership, control and incentives in
encouraging managers to improve efficiency. Owners often tie managers to
contracts that reduce conflict of interest between owners and managers.
The differences between alternative business ownership structures have
been investigated. According to theory, we expect managers with an
outcome-dependent dealer contract to be more efficient than managers with
a more integrated and less performance based employee dealer contract. We
also analyse how competitive pressure might reduce the moral hazard
problem and therefore affect contract design. Berle and Means (The Modern
Corporation and Private Property, Macmillan, New York, 1932) long ago
stated that the market mechanism could constrain the agency problem. Even
so, this problem has scarcely been investigated empirically. This paper
also considers the contractual effect of potential monitoring costs,
education and relationship age in a model tested on data from 175 dealer
contracts in a multinational oil company.
Journal: Applied Economics
Pages: 349-356
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322778
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:349-356
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Benson
Author-X-Name-First: Bruce
Author-X-Name-Last: Benson
Author-Name: Brent Mast
Author-X-Name-First: Brent
Author-X-Name-Last: Mast
Author-Name: David Rasmussen
Author-X-Name-First: David
Author-X-Name-Last: Rasmussen
Title: Can police deter drunk driving?
Abstract:
Economic studies using aggregate data generally find that higher taxes
are the most effective policy to reduce drunk driving while criminologists
report strong evidence supporting law enforcement measures in policy
evaluations. This paper evaluates these differing perspectives using the
aggregate data that is typically used in the economic literature. OLS and
fixed effects models show that police can affect the probability of arrest
for drunk driving and, in combination with evidence from DUI deterrence
experiments, this suggests that the failure of economic models to detect
deterrence reflects the lack of systematic and sustained police efforts
against DUI.
Journal: Applied Economics
Pages: 357-366
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322787
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322787
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:357-366
Template-Type: ReDIF-Article 1.0
Author-Name: Nieves Lazaro
Author-X-Name-First: Nieves
Author-X-Name-Last: Lazaro
Author-Name: MaLuisa Molto
Author-X-Name-First: MaLuisa
Author-X-Name-Last: Molto
Author-Name: Rosario Sanchez
Author-X-Name-First: Rosario
Author-X-Name-Last: Sanchez
Title: Unemployment and consumption patterns
Abstract:
In this paper we obtain empirical evidence about the effect of female and
male unemployment on household demand of a selection of goods and
services. We analyse the percentage of the family income expenditure on a
particular group of goods concerning education, domestic services, leisure
goods, hotels etc. The impact of several determinants on each group of
commodities is estimated using a Tobit specification. The data used for
estimation have been taken from The Household Expenditure Survey
(1990-91). Our main result is that male and female unemployment has a
different impact on the household consumption.
Journal: Applied Economics
Pages: 367-379
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322796
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322796
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:367-379
Template-Type: ReDIF-Article 1.0
Author-Name: Joshy Easaw
Author-X-Name-First: Joshy
Author-X-Name-Last: Easaw
Author-Name: Dean Garratt
Author-X-Name-First: Dean
Author-X-Name-Last: Garratt
Title: Elections and UK government expenditure cycles in the 1980s: an empirical analysis
Abstract:
This paper tests whether there exists any significant difference in the
responsiveness of UK government expenditure policy to changes in national
income and unemployment in pre- and post-election periods. The absence of
such a political effect would see the national income and unemployment
elasticities for government expenditure being uniform over an election
period. The empirical analysis deliberately covers the three UK
Conservative governments between 1979 and 1992 when academic debate on the
implications of discretionary policy for the economy and social welfare
were particularly prominent and when it appeared that political rhetoric
concurred with the academic prescriptions.
Journal: Applied Economics
Pages: 381-391
Issue: 3
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322804
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322804
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Handle: RePEc:taf:applec:v:32:y:2000:i:3:p:381-391
Template-Type: ReDIF-Article 1.0
Author-Name: Rubiana Chamarbagwala
Author-X-Name-First: Rubiana
Author-X-Name-Last: Chamarbagwala
Author-Name: Sunder Ramaswamy
Author-X-Name-First: Sunder
Author-X-Name-Last: Ramaswamy
Author-Name: Phanindra Wunnava
Author-X-Name-First: Phanindra
Author-X-Name-Last: Wunnava
Title: The role of foreign capital in domestic manufacturing productivity: empirical evidence from Asian economies
Abstract:
The paper empirically examines the relative contribution of foreign and
domestic machinery and equipment on manufacturing productivity in seven
Asian economies. A Cobb-Douglas production function is used to test
whether foreign machinery is more productive than domestic machinery. The
study is based on a pooled cross-sectional time-series model, including
seven countries - Hong Kong, Singapore, South Korea, Malaysia, Indonesia,
the Philippines and India - for the years 1975 to 1990. The results
support the hypothesis that a country's stage of development, skill-level
of its labour force, and the technology embodied in capital play a crucial
role in determining the relative impact of foreign and domestic capital on
manufacturing productivity.
Journal: Applied Economics
Pages: 393-398
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322561
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322561
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:393-398
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Iris Biefang-Frisancho Mariscal
Author-X-Name-First: Iris Biefang-Frisancho
Author-X-Name-Last: Mariscal
Title: OECD unemployment: structural breaks and stationarity
Abstract:
The paper is concerned with testing the unemployment rate of twenty two
OECD countries for stationarity. A sequential testing procedure was
applied where the break data is endogenized. Three different models were
tested for unit roots. It was found that the 'crash' model, which allows
for a shift in the level of the unemployment rate, was most relevant.
Furthermore, most breaks were associated with the first oil price shock.
Results suggest that in nine countries the unit root can be rejected, in
ten countries the null hypothesis cannot be rejected and in three cases
the results suggest possible trend stationarity.
Journal: Applied Economics
Pages: 399-403
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322570
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322570
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:399-403
Template-Type: ReDIF-Article 1.0
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: The transmission mechanism of business cycles among Germany, Japan, the UK and the USA
Abstract:
The study analyses the interdependent relationships of business cycles
among four major countries using LA-VAR methods. The results are compared
with results obtained using a standard VAR model. For the total sample
(1962-1995), it is found that the economies of individual countries move
independently and that inter-dependence is weak. However, causality from
the USA to Japan, and from Japan to Germany can be observed. It is also
found that the ripple effect differs in the first (1962-1973) and second
(1973-1995) sample periods. A change in the international ripple effect on
the business cycle may have occurred at the time of the first oil crisis.
These results are almost robust to the empirical techniques employed in
the analysis.
Journal: Applied Economics
Pages: 405-410
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322589
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322589
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:405-410
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Aghdas Mirzai
Author-X-Name-First: Aghdas
Author-X-Name-Last: Mirzai
Title: Real and nominal effective exchange rates for developing countries: 1973:1-1997:3
Abstract:
The International Monetary Fund construct and publish real and nominal
effective exchange rate data, mostly for developed countries. In this
paper real and nominal effective rate data for developing countries are
constructed. Application of the KPSS test to real effective rate data
reveals that PPP holds in most countries.
Journal: Applied Economics
Pages: 411-428
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322598
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322598
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:411-428
Template-Type: ReDIF-Article 1.0
Author-Name: Duncan Watson
Author-X-Name-First: Duncan
Author-X-Name-Last: Watson
Title: UK wage underpayment: implications for the minimum wage
Abstract:
Dynamic monopsony suggests that, due to labour market frictions, workers
will be paid below their productivity. This paper uses the stochastic
frontier technique to estimate the degree of this underpayment for UK
employees. It finds evidence of significant underpayment. The estimates
are used to examine whether the predictions of dynamic monopsony are
empirically accurate. No conclusive evidence against this theoretical
framework is found. The paper also investigates whether payment according
to productivity is a sufficient condition for the elimination of the
'working poor' problem. Due to the existence of an unemployment barrier,
it finds that the minimum wage is not an effective anti-poverty policy.
Journal: Applied Economics
Pages: 429-440
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322606
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322606
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:429-440
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Title: Estimation of a Taiwan monetary reaction function with time varying parameters
Abstract:
This paper employs a nonlinear Kalman filter to examine the time-varying
responses of Taiwan's monetary policy in the presence of a limited
dependent variable. The Kalman filtered parameters reveal that the
responses are not constant but change over time. Furthermore, a
counter-cyclical reaction function is identified and a stronger than usual
discretionary policy during the recessions is found.
Journal: Applied Economics
Pages: 459-466
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322624
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322624
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:459-466
Template-Type: ReDIF-Article 1.0
Author-Name: Mercedes Gumbau-Albert
Author-X-Name-First: Mercedes
Author-X-Name-Last: Gumbau-Albert
Title: Efficiency and technical progress: sources of convergence in the Spanish regions
Abstract:
The paper analyses the contribution of efficiency as a mechanism of
labour productivity convergence, taking as the unit of analysis the
Spanish regions in the period 1964-1993. Using the stochastic frontier
approach, a translogarithmic production function is estimated for the
different sectors of the Spanish regional economy, demonstrating on this
basis the existence of substantial differences in efficiency between
sectors as well as between regions. With regard to convergence, the
results obtained indicate that at aggregate level the convergence observed
in labour productivity is explained by the faster growth of the
capital-labour ratio of the initially poorer regions and the contribution
of technical change and the efficiency, hence by the convergence of TFP.
However, the information by sectors shows different results. Thus, on the
one hand, the importance of the convergence in production per employee is
seen in all sectors except agriculture and, on the other it is observed
that technical change is a factor of convergence in all sectors but
construction, and, qualitatively, the contribution of technical change is
greater than the contribution of efficiency. By sectors, technical change
contributed significantly to labour productivity convergence in
agriculture, but the faster growth of the capital-labour ratio of the rich
regions acted as a mechanism of divergence, completely counteracting the
technological catching-up effect. It is further concluded that, as well as
the contribution of the accumulation of factors, the positive evolution of
efficiency in the poorest regions favoured convergence in the construction
and industry sectors, whereas technical progress was decisive in industry
and the services sectors.
Journal: Applied Economics
Pages: 467-478
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322633
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322633
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:467-478
Template-Type: ReDIF-Article 1.0
Author-Name: Afonso Ferreira
Author-X-Name-First: Afonso
Author-X-Name-Last: Ferreira
Title: Convergence in Brazil: recent trends and long-run prospects
Abstract:
This paper applies to the analysis of the interstate income distribution
in Brazil a set of techniques that have been widely used in the current
empirical literature on growth and convergence. Usual measures of
dispersion in the interstate income distribution (the coefficient of
variation and Theil's index) suggest that sigma-convergence was an
unequivocal feature of the regional growth experience in Brazil, between
1970 and 1986. After 1986, the process of convergence seems, however, to
have slowed down almost to a halt. A standard growth model is shown to fit
the regional data well and to explain a substantial amount of the
variation in growth rates, providing estimates of the speed of
(conditional) beta-convergence of approximately 3% p.a. Different
estimates of the long-run distribution implied by the recent growth trends
point towards further reductions in the interstate income inequality, but
also suggest that the relative per capita incomes of a significant number
of states and the number of 'very poor' and 'poor' states were, in 1995,
already quite close to their steady-state values.
Journal: Applied Economics
Pages: 479-489
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322642
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322642
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:479-489
Template-Type: ReDIF-Article 1.0
Author-Name: Nephil Matangi Maskay
Author-X-Name-First: Nephil Matangi
Author-X-Name-Last: Maskay
Title: A cautionary note in using patterns of shocks to determine optimal exchange rate policy. An exploration of Nepalese and Indian exchange rate relations: 1964-1994
Abstract:
Nepal and India are developing countries in Asia whose (hard) peg has
existed for almost forty years as well as no restriction on capital
mobility between both countries. However, empirical results suggest that
Nepal and India do not face symmetric patterns of shocks and are thus not
suitable for a fixed exchange rate under this criteria. One possible
explanation may be that the monetary authority plays some role in the
short run to reduce the cost of the exchange rate regime. This suggests
that some caution should be used in basing optimal exchange rate policy on
this single criteria.
Journal: Applied Economics
Pages: 491-497
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322651
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322651
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:491-497
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Lim
Author-X-Name-First: Christine
Author-X-Name-Last: Lim
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Title: A seasonal analysis of Asian tourist arrivals to Australia
Abstract:
Rapid economic growth in South-East and East Asia has seen a surge in
tourist arrivals from this region to Australia in the 1990s, prior to the
currency crisis in late 1997. The purpose of the paper is to use
Autoregressive Integrated Moving Average (ARIMA) models to explain the
nonstationary seasonally unadjusted quarterly tourist arrivals from Hong
Kong and Singapore to Australia from 1975(1) to 1996(4). As the tourist
arrivals series display strong seasonal patterns, deterministic and
stochastic seasonality are examined as possible explanations for
variations in the international tourist arrivals series. The Hylleberg et
al. (Journal of Econometrics, 99, pp. 215-38, 1990) test for seasonal unit
roots is used to examine stochastic seasonality in the various series.
Journal: Applied Economics
Pages: 499-509
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322660
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322660
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:499-509
Template-Type: ReDIF-Article 1.0
Author-Name: David Coady
Author-X-Name-First: David
Author-X-Name-Last: Coady
Author-Name: Limin Wang
Author-X-Name-First: Limin
Author-X-Name-Last: Wang
Title: Incentives, allocation and labour-market reforms during transition: the case of urban China, 1986-1990
Abstract:
Has the reform process in China resulted in the introduction of
incentives directed at a more efficient allocation of resources? Using
data on individual earnings in urban Liaoning province for the period
1986-1990 and a wage-equation approach, we address this issue in the
context of labour-market reforms, focusing specifically on returns to
education. Our results indicate that failure to address the issue of
endogenous selection of more 'able' individuals into state-owned
enterprises (SOEs) can severely bias returns downwards. Unlike in SOEs,
returns in collective-owned enterprises (COEs) increased, the latter
having been allowed to 'grow out of the plan' more quickly and subject to
more competition in factor and product markets. We conclude that
decentralization without competition is unlikely to result in the
introduction of an efficient incentive mechanism. The more
administratively determined regular wages are one avenue for increased
returns. We find evidence of 'differentiated bonuses' in COEs, but we
cannot reject the hypothesis of 'bonus sharing' in SOEs. Reforms which
face SOEs with more competitive markets (e.g. reform of in-kind benefits
such as housing) should have substantial benefits in terms of a more
efficient allocation of labour both within and across enterprises.
Journal: Applied Economics
Pages: 511-526
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322679
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322679
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:511-526
Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Title: Demand Shift across US Industries and the Stabilizing Function of Nominal Wage and Price Flexibility.
Abstract:
Nominal wage and price adjustments in response to demand shocks are
likely to determine industrial output variability. The direction of this
relationship is complicated, however, by demand and supply factors. The
empirical investigation across a sample of private industries in the
United States produces the following evidence. Price flexibility moderates
the response of the output supplied to a given shift in industrial demand.
Similarly, nominal wage flexibility moderates, although insignificantly,
the output response to a given shift in industrial demand. The size of
industrial demand shifts dominates, however, supply-side constraints in
differentiating output fluctuations across industries. While price
flexibility moderates shifts in industrial demand in response to aggregate
demand shocks, these shifts are larger the higher the nominal wage
flexibility across industries. The combined supply and demand effects
differentiate the stabilizing function of nominal wage and price
flexibility. Nominal wage flexibility increases output fluctuations in
response to aggregate demand shocks. In contrast, output fluctuations are
smaller the larger the price adjustment to demand shocks across
industries. Given the endogeneity of price flexibility, it is necessary to
control for variation in demand variability in order to reveal the
stabilizing effect of price flexibility on output across industries.
Journal: Applied Economics
Pages: 441-458
Issue: 4
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322615
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322615
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Handle: RePEc:taf:applec:v:32:y:2000:i:4:p:441-458
Template-Type: ReDIF-Article 1.0
Author-Name: Terry Robinson
Author-X-Name-First: Terry
Author-X-Name-Last: Robinson
Title: Electricity pool prices: a case study in nonlinear time-series modelling
Abstract:
This paper considers modelling the behaviour of prices in the English and
Welsh wholesale electricity Pool since the creation of this spot market in
1990. The process turns out to be nonlinear and a logistic smooth
transition autoregressive model is fitted and shown to be superior to a
linear alternative. The behaviour of the estimated model is discussed, and
it is seen that nonlinearity is needed to describe the institutional
characteristics and historical path of pool prices.
Journal: Applied Economics
Pages: 527-532
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322435
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322435
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:527-532
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Kollias
Author-X-Name-First: Christos
Author-X-Name-Last: Kollias
Author-Name: Stelios Makrydakis
Author-X-Name-First: Stelios
Author-X-Name-Last: Makrydakis
Title: Tax and spend or spend and tax? Empirical evidence from Greece, Spain, Portugal and Ireland
Abstract:
The paper examines empirically the relationship between government
revenues and expenditures in four European countries: Greece, Spain,
Ireland, and Portugal. In relative terms all four may be considered as the
poorest members of the European Union. Yet, they present a fairly diverse
picture as far as their macroeconomic performance and fiscal position is
concerned. The empirical findings from cointegration and causality tests
that are reported here indicate that in the case of Greece and Ireland tax
and spending decisions are taken simultaneously by the fiscal authority,
the tax-and-spend hypothesis is supported in the case of Spain, while
absence of any causal ordering between government expenditure and tax
revenues has been established for Portugal.
Journal: Applied Economics
Pages: 533-546
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322444
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:533-546
Template-Type: ReDIF-Article 1.0
Author-Name: John Robst
Author-X-Name-First: John
Author-X-Name-Last: Robst
Author-Name: Jack Keil
Author-X-Name-First: Jack
Author-X-Name-Last: Keil
Title: The relationship between athletic participation and academic performance: evidence from NCAA Division III
Abstract:
This paper examines athletes' grades and graduation rates at an NCAA
Division III institution. Thirty-seven per cent of all college athletes
compete in Division III, yet this group has received little attention in
the literature. Nontransfer student-athletes have higher GPAs than
nonathletes, while transfer student-athletes have grades similar to
nonathletes. Graduation rates are higher for athletes. Thus, athletic
participation does not impair students' academic performance.
Journal: Applied Economics
Pages: 547-558
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322453
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322453
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:547-558
Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Carmichael
Author-X-Name-First: Fiona
Author-X-Name-Last: Carmichael
Author-Name: Robert Ward
Author-X-Name-First: Robert
Author-X-Name-Last: Ward
Title: Youth unemployment and crime in the English regions and Wales
Abstract:
This paper investigates the relationship between unemployment and crime
in England and Wales taking account of both age and gender in the
unemployment measures. The study is for 1985-95 and is disaggregated to
the regional level. We allow for different types of crime and the
deterrence effects of detection and punishment. We also consider the
relationship between ethnicity and crime in the light of the contentious
public debate on this issue. Our results indicate that there is a
systematic positive relationship between burglary rates and male
unemployment regardless of age. However, we find that while youth
unemployment is consistently and positively related to criminal damage and
robbery rates there is no systematic evidence of a relationship between
adult male unemployment and these specific crimes. Instead our evidence
supports a positive link between adult unemployment and theft. We find no
compelling evidence of a link between ethnicity and crime.
Journal: Applied Economics
Pages: 559-571
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322462
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322462
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:559-571
Template-Type: ReDIF-Article 1.0
Author-Name: Wim Groot
Author-X-Name-First: Wim
Author-X-Name-Last: Groot
Author-Name: Henriette Maassen Vann De Brink
Author-X-Name-First: Henriette Maassen Vann
Author-X-Name-Last: De Brink
Title: Education, training and employability
Abstract:
Two hypotheses are tested: (1) education and training increase the
employability of workers at other tasks within the firm and reduce the
need for help from supervisors when workers encounter small problems, and
(2) greater employability and problem solving capability increase wages.
The empirical results show that greater employability and problem solving
capability are independent from each other. Formal work-related training
increases employability. Workers in jobs requiring no induction training
are less employable at other jobs or departments. Both general and
specific human capital increase the ability of workers to solve problems
on their own. Greater employability does not increase wages. Male workers
who solve problems on their own earn more than men who need help from
others. The effects of human capital variables on employability and
problem solving capability do not differ between and men and women.
However, it is found that the ability to solve problems on one's own has a
pay off for men but not for women.
Journal: Applied Economics
Pages: 573-581
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322471
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322471
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:573-581
Template-Type: ReDIF-Article 1.0
Author-Name: Rosario Sanchez
Author-X-Name-First: Rosario
Author-X-Name-Last: Sanchez
Author-Name: Luis Toharia
Author-X-Name-First: Luis
Author-X-Name-Last: Toharia
Title: Temporary workers and productivity: the case of Spain
Abstract:
The primary focus of this paper is on efficiency wages and their testable
implications. In particular the nature of the relationship between
efficiency wages, productivity and the make up of the labour force is
analysed, modelled and subjected to an empirical test. This theory is
consistent with the views of many managers and personal administrators,
who tend to ascribe primary importance in wage setting to indirect control
of the firm's workforce. Here we test a labour augmenting production
function where effort depends not only on wages but also on the proportion
of temporary workers.
Journal: Applied Economics
Pages: 583-591
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322480
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322480
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:583-591
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Arokiasamy
Author-X-Name-First: Frank
Author-X-Name-Last: Arokiasamy
Author-Name: Ike Mathur
Author-X-Name-First: Ike
Author-X-Name-Last: Mathur
Author-Name: Subhash Sharma
Author-X-Name-First: Subhash
Author-X-Name-Last: Sharma
Title: Effects of US money announcements on the daily exchange rates of industrialized countries
Abstract:
This paper examines the effects of anticipated and unanticipated
components of US money supply announcements on exchange rates for each day
of the week for eight industrialized countries. The results show that most
of the reaction to the anticipated component occurs before the
announcement. However, the unanticipated component of the announcement
causes strong reactions on the Friday and the Monday following the
announcement, and in the days preceding the announcement.
Journal: Applied Economics
Pages: 593-599
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322499
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322499
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:593-599
Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Cohen
Author-X-Name-First: Marcel
Author-X-Name-Last: Cohen
Title: The impact of brand selection on price competition - a double-edged sword
Abstract:
Brand selection - the number of alternative brands of a particular
product - is a double-edged sword in that on the one hand it increases
rivalry and so stimulates price competition but on the other hand it
causes consumers to be poorly informed and thus vulnerable to exploitation
and so dampens price competition. This phenomenon is demonstrated
analytically and empirically, with analytical work based on Hotelling's
unit market line. Using price dispersion as a measure of the state of
price competition, it is shown that a widening in price dispersion, that
is, a lessening of price competition, arises from an increase in brand
selection. Any increase in the number of alternative brands on offer
(brand selection) causes an increase in 'DIF-ness' (Distortion in
Information Function) which in turn causes an increase in price dispersion
(a lessening of price competition). The phenomenon is demonstrated
empirically through a small survey of household beverages.
Journal: Applied Economics
Pages: 601-609
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322507
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322507
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:601-609
Template-Type: ReDIF-Article 1.0
Author-Name: Haiyan Song
Author-X-Name-First: Haiyan
Author-X-Name-Last: Song
Author-Name: Peter Romilly
Author-X-Name-First: Peter
Author-X-Name-Last: Romilly
Author-Name: Xiaming Liu
Author-X-Name-First: Xiaming
Author-X-Name-Last: Liu
Title: An empirical study of outbound tourism demand in the UK
Abstract:
A general to specific methodology is used to construct UK demand for
outbound tourism models to twelve destinations. A tourism destination
preference index is introduced to take into account social, cultural and
psychological influences on tourists' decisions concerning their overseas
holiday destinations. The tests support the existence of a cointegration
relationship for each of 11 UK overseas holiday destinations. The
corresponding error correction models are estimated. The empirical results
show that the long-run income elasticities for all destinations range from
1.70 to 3.90 with an average of 2.367. The lowest and highest short-run
income elasticities are 1.05 and 3.78 respectively, with an average of
2.216. The estimates of the income elasticities imply that overseas
holidays are highly income elastic while the own-price elasticities
suggest that the demand for UK outbound tourism is relatively own-price
inelastic. In terms of the significance of substitution prices in the
regression equations, Ireland is the favourite substitute destination for
UK outbound tourists. Ex post forecasts over a period of six years are
generated from the ECM models and the results compared with those of a
naive model, an AR(1) model, an ARMA(p,q) model, and a VAR model. The
forecasting performance criteria show that the ECM model has the best
overall forecasting performance for UK outbound tourism.
Journal: Applied Economics
Pages: 611-624
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322516
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322516
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:611-624
Template-Type: ReDIF-Article 1.0
Author-Name: Young-Yong Kim
Author-X-Name-First: Young-Yong
Author-X-Name-Last: Kim
Author-Name: Jin-Seok Park
Author-X-Name-First: Jin-Seok
Author-X-Name-Last: Park
Author-Name: Sangphill Kim
Author-X-Name-First: Sangphill
Author-X-Name-Last: Kim
Title: Korean inflation during the US military administration of 1945-1948: a further analysis
Abstract:
This paper investigates the dynamic process of Korean inflation under the
US military administration using a structural vector autoregression (SVAR)
incorporating cointegration relations among the variables. The results
show that government expenditure shocks are primarily responsible for
price movements together with money demand shocks having noticeable
short-run impacts. The study also shows that government expenditure shocks
are the most important source of fluctuations in each of the other
variables investigated. The paper concludes that a reform of fiscal and
monetary system is necessary to stop the sustaining process of inflation
as well as fluctuations in other macro-variables.
Journal: Applied Economics
Pages: 625-633
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322525
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322525
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:625-633
Template-Type: ReDIF-Article 1.0
Author-Name: G. S. Maddala
Author-X-Name-First: G. S.
Author-X-Name-Last: Maddala
Author-Name: S. Wu
Author-X-Name-First: S.
Author-X-Name-Last: Wu
Title: Cross-country growth regressions: problems of heterogeneity, stability and interpretation
Abstract:
The paper discusses the issues of heterogeneity and stability of
cross-country growth regressions that have been used to study the problem
of convergence. Almost all studies use pooled regressions. The paper
considers the issue of pooling under heterogeneity using a hierarchical
Bayesian method and estimates growth regressions for different panels
studied in earlier papers, and different regimes. The conclusion is that
the convergence rates are higher than those obtained from pooled
regressions under the assumption of homogeneity and that there is
instability over time in the relationships.
Journal: Applied Economics
Pages: 635-642
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322534
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322534
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:635-642
Template-Type: ReDIF-Article 1.0
Author-Name: Mandy Ryan
Author-X-Name-First: Mandy
Author-X-Name-Last: Ryan
Author-Name: Julie Ratcliffe
Author-X-Name-First: Julie
Author-X-Name-Last: Ratcliffe
Title: Some issues in the application of closed-ended willingness to pay studies to valuing health goods: an application to antenatal care in Scotland
Abstract:
Limited resources coupled with unlimited demands means that decisions
have to be made concerning the allocation of scarce health care resources.
The economic instrument of willingness to pay (WTP) is one instrument that
can be used to help this decision-making process. Recommendations from the
environmental economics literature suggest that the closed end (CE) WTP
approach should be used. This approach is just beginning to be used to
value health goods. This paper addresses the sensitivity of the
closed-ended WTP approach to three issues: the design of the bid vector;
the upper and lower limits of integration; and the method of analysis.
These are discussed with reference to a study looking at the value of
alternative models of ante-natal care in Scotland. The results are
discussed and conclusions made concerning the use of the CE WTP instrument
for valuing health goods.
Journal: Applied Economics
Pages: 643-651
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322543
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322543
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:643-651
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Cushing
Author-X-Name-First: Brian
Author-X-Name-Last: Cushing
Author-Name: Buhong Zheng
Author-X-Name-First: Buhong
Author-X-Name-Last: Zheng
Title: Re-evaluating differences in poverty among central city, suburban, and nonmetropolitan areas of the US
Abstract:
Poverty in the United States varies greatly by location. The difference
in poverty intensity among locations, however, has only been evaluated by
the official poverty measure - the headcount ratio - which has several
drawbacks. The official poverty statistics also suffer from use of a
single, arbitrary poverty line. This paper uses a recently-developed
distribution-sensitive measure of poverty and 1990 census data to
reconsider the difference among central city, suburban, and
nonmetropolitan poverty levels, as well as differences among US regions.
Instead of using a single, arguable poverty line, this paper lets the
poverty line vary over an income range so that conclusions are more
robust. We check for significance of differences across locations by
applying some recently-developed methods of statistical inference.
Journal: Applied Economics
Pages: 653-660
Issue: 5
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322552
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322552
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Handle: RePEc:taf:applec:v:32:y:2000:i:5:p:653-660
Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsson
Author-X-Name-First: Fredrik
Author-X-Name-Last: Carlsson
Author-Name: Olof Johansson-Stenman
Author-X-Name-First: Olof
Author-X-Name-Last: Johansson-Stenman
Title: Willingness to pay for improved air quality in Sweden
Abstract:
The aim of the paper is to quantify individual willingness-to-pay
measures of improved air quality in Sweden by using the Contingent
Valuation Method (CVM). Such measures are important for policy makers when
deciding about public investments and policy instruments in order to
regulate environmental impacts, e.g. from road transportation and
industry. The mean willingness to pay (WTP) for a 50% reduction of harmful
substances where the respondents live and work was about 2000 SEK/year,
which is of the same order of magnitude as earlier stated preference
studies in Nordic countries. Most parameters in the econometric analysis
had the expected sign. WTP was increasing in income, wealth and education;
it was larger for men, members of environmental organizations, people
living in big cities (which are on average more polluted), and people who
own their house or apartment. It was lower for retired people. However,
the additional WTP for people in big cities, although significantly higher
than for other people, was lower than expected, indicating a possible
insensitivity-to-scope effect.
Journal: Applied Economics
Pages: 661-669
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322273
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322273
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:661-669
Template-Type: ReDIF-Article 1.0
Author-Name: Kathleen Dorsainvil
Author-X-Name-First: Kathleen
Author-X-Name-Last: Dorsainvil
Title: Collapsing exchange rate regimes in the presence of a parallel market
Abstract:
This paper develops a model of an economy where the fixed exchange rate
is overvalued and coexists with a parallel market for foreign currency.
Such a situation persists because the parallel marker is used by the
central authorities as an instrument to delay policy changes. Using the
Haitian experience, this paper estimates a rationing parameter of foreign
currency in the official market which translates the extent of tolerance
of the parallel market. The paper also produces estimates of onestep-ahead
probability of devaluation. Rationing has been severe and the probability
of collapse has reached high levels during the period studied.
Journal: Applied Economics
Pages: 671-680
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322282
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322282
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:671-680
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Resignato
Author-X-Name-First: Andrew
Author-X-Name-Last: Resignato
Title: Violent crime: a function of drug use or drug enforcement?
Abstract:
An assumption of many national drug control policies is the existence of
a causal relationship between illegal drug use and violent crime. However,
robust empirical findings supporting this relationship are scarce.
Alternatively, there is extensive research, much of it in economics, which
suggests that there may actually be a stronger causal relationship between
drug enforcement/control/prohibition and violent crime than drug use and
criminal violence. The paper presents some of the research pertaining to
the relationship between illegal drugs and violent crime. In addition, a
violent crime model is empirically tested using data from 24 Metropolitan
Statistical Areas (MSAs) in the United States to determine the nature and
strength of this relationship.
Journal: Applied Economics
Pages: 681-688
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322291
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:681-688
Template-Type: ReDIF-Article 1.0
Author-Name: Weiren Wang
Author-X-Name-First: Weiren
Author-X-Name-Last: Wang
Title: Evaluating the technical efficiency of large US law firms
Abstract:
We conduct a performance evaluation in terms of technical efficiency of
large law firms based on a unique sample of 163 large law firms in the USA
in 1994. To estimate technical efficiency for individual firms, we use the
stochastic frontier production function with composed errors where output
(measured in terms of revenue) is a function of various labour and human
capital inputs. Based on the sample, the average level of technical
efficiency in the production of legal service in large US law firms is
estimated at 82.20%. More than 87% of the firms attained 75% or higher
level of technical efficiency. The estimation results also indicate that
the number of lawyers, the number of paralegals, and the number of
associates per partner, have a positive and statistically significant
effect on the production of legal service.
Journal: Applied Economics
Pages: 689-695
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322309
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322309
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:689-695
Template-Type: ReDIF-Article 1.0
Author-Name: Yue Fang
Author-X-Name-First: Yue
Author-X-Name-Last: Fang
Title: Seasonality in foreign exchange volatility
Abstract:
The paper reports further empirical evidence on seasonality in foreign
exchange volatility using high-frequency data. Using a basis of the signal
plus noise framework, the approach decomposes tick-by-tick Reuters FXFX
quotes into a random walk and a stationary component, termed the efficient
price and the pricing error, respectively. The efficient price is not
directly observable and is an approximation of the 'true' value. The
pricing error captures the deviation between the observed indicative quote
and the efficient price. Under the proposed model, daily and intraday
volatilities of the efficient price are estimated. A pronounced pattern of
volatility is uncovered and appears related to the daily activity cycle of
major organized stock exchanges. It is argued that seasonality in
volatility is a symptom of foreign exchange markets. Results confirm
Andersen and Bollerslev's findings that significant seasonal effects are
one important determinant of overall volatility at high frequencies.
Journal: Applied Economics
Pages: 697-703
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322318
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322318
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:697-703
Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Author-Name: A. E. H. Speight
Author-X-Name-First: A. E. H.
Author-X-Name-Last: Speight
Title: Threshold nonlinearities in unemployment rates: further evidence for the UK and G3 economies
Abstract:
The paper appraises the in-sample and out-of-sample adequacy of linear AR
and nonlinear SETAR models of unemployment rates for Germany, Japan, the
UK and the US. Tests are reported for the presence and specification of
threshold nonlinearities, SETAR model estimates, limiting dynamic
properties and residual diagnostics, and out-of-sample forecasting
performance. In-sample, threshold non-linearities are confirmed to be
strongly present for the UK, US and Germany, and more marginally so for
Japan. Out-of-sample, excepting Japan, SETAR models provide superior
onestep-ahead forecast on RMSE grounds, most notably for the US. Final
tests indicate that these models exhibit predictive accuracy in the sense
of parameter and residual variance stability, implying the potential for
exploitation of such nonlinearity in official forecasting.
Journal: Applied Economics
Pages: 705-715
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322327
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322327
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:705-715
Template-Type: ReDIF-Article 1.0
Author-Name: Cihan Bilginsoy
Author-X-Name-First: Cihan
Author-X-Name-Last: Bilginsoy
Title: Bid dispersion, competition and wage regulation: some field evidence from public contract bidding in British Columbia
Abstract:
The paper uses data from British Columbia to show that bid dispersion
(the difference between the winning and next-lowest bids) in public school
construction contract bidding is very compact, and that it varies
inversely with the degree of competition. It also examines the impact of
the Skill Development and Fair Wage Law (SDFWP), which promulgated wage
scales and required contractors to pay them in public construction
projects, on the bid dispersion. Multivariate analysis shows that bid
dispersion declined after SDFWP. One possible interpretation of this
result is that the contractors became less prone to the winner's curse
following the SDFWP.
Journal: Applied Economics
Pages: 717-722
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322336
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322336
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:717-722
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed. Asseery
Author-X-Name-First: Ahmed.
Author-X-Name-Last: Asseery
Title: External military threat and the response of the member states of the Gulf Co-operation Council (GCC)
Abstract:
The study shows that procurements of traditional arms by two countries
have the possibility of moving together over time. This is demonstrated
with reference to Iran and the member states of the Gulf Co-operation
Council (GCC) for the period 1961- 1996. Acquiring arms by the member
states of the GCC is shown to be only a response to the perception of
their leaders to the external threat posed by Iran throughout the varying
regimes that have ruled Teheran. In the light of the recent emergence of
macroeconomic problems such as unemployment in the economies of the GCC
coupled with the ineffectiveness of the financially exhausting build-up of
arms as a military deterrent policy, one important implication of the
study is that the priority of the GCC leaders will have to turn to a more
effective deterrent policy such as acquiring nuclear technology rather
than engaging in a costly and unsuccessful Arab military alliance as
experienced in the 1970s.
Journal: Applied Economics
Pages: 723-728
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322345
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322345
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:723-728
Template-Type: ReDIF-Article 1.0
Author-Name: Shew-Jiuan Su
Author-X-Name-First: Shew-Jiuan
Author-X-Name-Last: Su
Author-Name: Steven Yen
Author-X-Name-First: Steven
Author-X-Name-Last: Yen
Title: A censored system of cigarette and alcohol consumption
Abstract:
Many previous studies of US cigarette and alcohol consumption have
focused on single equations. However, the addictive nature of consumption
suggests that it is more appropriate to model these products as a system.
We propose a two-step estimation procedure and apply the procedure to a
system of equations for cigarette, beer and wine consumption. Results
differ from those derived from an existing two-step procedure. Findings
suggest that consumption of cigarettes, beer and wine is responsive to
income changes but the elasticities are rather small. Personal physiques,
education, age, race, ethnicity, health, gender, employment status, and
regions also play significant roles in consumption.
Journal: Applied Economics
Pages: 729-737
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322354
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:729-737
Template-Type: ReDIF-Article 1.0
Author-Name: Pantelis Kalaitzidakis
Author-X-Name-First: Pantelis
Author-X-Name-Last: Kalaitzidakis
Author-Name: George Korniotis
Author-X-Name-First: George
Author-X-Name-Last: Korniotis
Title: The Solow growth model: vector autoregression (VAR) and cross-section time-series analysis
Abstract:
The paper examines whether the Mankiw et al. results regarding the Solow
model are specific tothe statistical methodology used. Therefore, instead
of using cross-section data, annual data were used and the Solow model was
investigated using a Vector AutoRegression (VAR) analysis for the G7
countries, and cross-section time-series data for the G3 countries.
Analysis shows that, in both cases, the Mankiw et al. results generally
hold. It also shows that the use of annual data can play an important and
complementary role in revealing the differences in the growth process
between individual countries.
Journal: Applied Economics
Pages: 739-747
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322363
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322363
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:739-747
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Cooke
Author-X-Name-First: Andrew
Author-X-Name-Last: Cooke
Author-Name: Wendy Chapple
Author-X-Name-First: Wendy
Author-X-Name-Last: Chapple
Title: Merger activity in the waste disposal industry: the impact and the implications of the Environmental Protection Act
Abstract:
Over the last two and a half decades, the UK's waste disposal industry
has evolved from a disparate collection of localized small-scale operators
to a coherent multimillion pound industry. With particular reference to
the 1990 Environmental Protection Act, this paper uses multinomial logit
analysis to estimate the degree to which increased regulation of the
industry has led to a rise in merger activity within the sector. It is
shown that the Act did increase the probability of a waste disposal firm
being associated with merger activity, either as an acquiring firm or as a
target for other firms. As a result, intra-industry consolidation took
place alongside attempts by non-waste disposal firms to diversify their
interests within a buoyant sector which was avoiding the recessionary
downturn affecting other sectors of the British economy.
Journal: Applied Economics
Pages: 749-755
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322372
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322372
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:749-755
Template-Type: ReDIF-Article 1.0
Author-Name: Joaquin Maudos
Author-X-Name-First: Joaquin
Author-X-Name-Last: Maudos
Author-Name: Jose Manuel Pastor
Author-X-Name-First: Jose Manuel
Author-X-Name-Last: Pastor
Author-Name: Lorenzo Serrano
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Serrano
Title: Convergence in OECD countries: technical change, efficiency and productivity
Abstract:
The aim of this study is to analyse labour productivity convergence in
the OECD countries over the period 1975-90. A nonparametric frontier
approach is used to calculate the Malmquist productivity index. By
breaking it down, the contribution in the growth of labour productivity of
technical progress, of changes in efficiency, and of the accumulation of
inputs per worker are quantified. Unlike other studies, the results
obtained show that technical change has worked against labour productivity
convergence, since it has always been greater in the countries with higher
labour productivity.
Journal: Applied Economics
Pages: 757-765
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322381
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322381
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:757-765
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitris Hatzinikolaou
Author-X-Name-First: Dimitris
Author-X-Name-Last: Hatzinikolaou
Title: Sensitivity of consumption to income and to government purchases: some specification and estimation issues
Abstract:
The paper derives a nonlinear error-correction model (ECM) for
consumption and shows that existing models that are based on quadratic
utility, combine permanent income and current-income consumption, and nest
(or could nest) the hypothesis of substitutability between private
consumption and government purchases are special cases of the ECM. The
importance of some econometric issues that have not received proper
attention in the literature is demonstrated by estimating the models using
US aggregate quarterly data, 1953:1-1992:4. The evidence suggests that the
ECM produces more reliable estimates than do the existing restrictive
models.
Journal: Applied Economics
Pages: 767-775
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322390
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322390
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:767-775
Template-Type: ReDIF-Article 1.0
Author-Name: Phil Shackley
Author-X-Name-First: Phil
Author-X-Name-Last: Shackley
Author-Name: Simon Dixon
Author-X-Name-First: Simon
Author-X-Name-Last: Dixon
Title: Using contingent valuation to elicit public preferences for water fluoridation
Abstract:
The methods and results of a contingent valuation survey to elicit public
preferences for water fluoridation are reported. The study demonstrates
that not only is it important to acknowledge that there will be losers
from the introduction of such a programme but that losers must be allowed
to express a value for the magnitude of their perceived loss. Two methods
of valuing this loss are explored. Conventional willingness to accept
compensation questions are compared with questions in which losers are
asked to state their willingness to pay to prevent their water being
fluoridated. The results provide tentative support for asking willingness
to pay to prevent questions instead of willingness to accept questions
when evaluating certain types of public good. The issue of protest
responses in contingent valuation surveys is also highlighted and
discussed.
Journal: Applied Economics
Pages: 777-787
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322408
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322408
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:777-787
Template-Type: ReDIF-Article 1.0
Author-Name: P. M. C. De Boer
Author-X-Name-First: P. M. C.
Author-X-Name-Last: De Boer
Author-Name: C. Martinez
Author-X-Name-First: C.
Author-X-Name-Last: Martinez
Author-Name: R. Harkema
Author-X-Name-First: R.
Author-X-Name-Last: Harkema
Title: Trade liberalization and the allocation over domestic and foreign supplies: a case study for Spanish manufacturing
Abstract:
The purpose of the paper is to investigate whether Spain's accession to
the European Union in 1986 caused a structural break in the allocation of
total supplies of manufactures over domestic and foreign supplies. To that
end the homogeneity-constrained Almost Ideal Demand System is used to
specify the long-run equilibrium relationships between the shares in total
supplies and total real demand and relative prices and a first-order error
correction mechanism in order to describe the adjustment process to
equilibrium. Using a formal statistical test, it turns out that a
structural break actually occurred and led to a rather sharp decrease in
the share of Spain and an increase in the shares of the other members of
the European Union.
Journal: Applied Economics
Pages: 789-799
Issue: 6
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322417
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322417
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Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:789-799
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Collins
Author-X-Name-First: Alan
Author-X-Name-Last: Collins
Author-Name: Martin Snell
Author-X-Name-First: Martin
Author-X-Name-Last: Snell
Title: Parental preferences and choice of school
Abstract:
This paper provides a UK high resolution microeconometric study of
parental preferences and the choice process for secondary schools. Given
the particular geographical features of the region, first preference
almost entirely related to one of two state schools, which is a situation
that perhaps better reflects the real nature of the options faced by most
parents in the UK. In contrast to earlier work, distance and access
considerations were explicitly incorporated in the preference and choice
models estimated and found to be a significant influence on parental
decisions. Further significant factors were found, dependent upon the
parents' actual choice of school.
Journal: Applied Economics
Pages: 803-813
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322147
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322147
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:803-813
Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Nayga
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Nayga
Title: Schooling, health knowledge and obesity
Abstract:
The connection between schooling and health is well documented. An
important empirical issue that needs to be examined, however, is whether
schooling's effects are due to individual health knowledge differences.
This empirical study examines this issue with an increasingly important
health indicator, obesity. Since provision of health knowledge is a major
tool of public agencies promoting health, this empirical study uses a new
direct measure of health knowledge to test this hypothesis. The results
show that knowledge is inversely related to the probability that an
individual is obese. Schooling's effects on relative weight and the
probability of being obese are explained by differences in knowledge. This
result may imply that schooling's effect on the allocative efficiency of
the household production of health is the main reason schooling is linked
to health behaviour. The result also may imply that the most effective
method of health education is to highlight the disease element of poor
dietary habits and health. More importantly, the simulations conducted
suggest positive returns to knowledge based on improvements in the
probability estimates.
Journal: Applied Economics
Pages: 815-822
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322156
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322156
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:815-822
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando San Miguel
Author-X-Name-First: Fernando San
Author-X-Name-Last: Miguel
Author-Name: Mandy Ryan
Author-X-Name-First: Mandy
Author-X-Name-Last: Ryan
Author-Name: Emma McIntosh
Author-X-Name-First: Emma
Author-X-Name-Last: McIntosh
Title: Applying conjoint analysis in economic evaluations: an application to menorrhagia
Abstract:
The increased demand for health care, coupled with limited resources,
means that decisions have to be made concerning the allocation of scarce
health care resources. This paper considers how conjoint analysis (CA) can
be used to aid this decision making process. It is shown how the technique
can be used to estimate marginal rates of substitution between attributes,
willingness to pay (WTP) if cost is included as an attribute and overall
utility scores for different ways of providing a service. The technique is
applied to consider women's preferences for two surgical procedures in the
treatment of menorrhagia: hysterectomy and conservative surgery. The
results suggest conservative surgery is preferred to hysterectomy, as
indicated by higher utility scores for the former and a marginal WTP of
7593 to have conservative surgery rather than hysterectomy. The internal
validity of CA was also shown. It is concluded that CA is a potentially
useful instrument for policy makers. However, numerous methodological
issues need addressing before the technique becomes an established
instrument within economic evaluations.
Journal: Applied Economics
Pages: 823-833
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322165
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322165
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:823-833
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Author-Name: Tong Li
Author-X-Name-First: Tong
Author-X-Name-Last: Li
Author-Name: Dan Friesner
Author-X-Name-First: Dan
Author-X-Name-Last: Friesner
Title: Grants and cost shifting in outpatient clinics
Abstract:
Cost shifting for a non-profit, revenue maximizing healthcare provider
which faces a constraint that profit must be non-negative is examined,
focusing on fixed payment programmes like Medicare. In addition, how grant
money affects cost shifting and extend the empirical analysis of cost
shifting to outpatient clinics, using data from publicly funded clinics in
California is explored. The results are consistent with cost shifting, and
indicate that the cause may be that the Medicare payment system cuts
revenues more than costs, forcing clinics to subsidize the care of
Medicare patients by increasing prices to other patients.
Journal: Applied Economics
Pages: 835-843
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322174
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322174
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:835-843
Template-Type: ReDIF-Article 1.0
Author-Name: Fiona MaCphail
Author-X-Name-First: Fiona
Author-X-Name-Last: MaCphail
Title: Are estimates of earnings inequality sensitive to measurement choices? A case study of Canada in the 1980s
Abstract:
While it is necessary that researchers make choices in order to estimate
inequality, the reasons for the measurement choices and their impact on
inequality estimates have not been widely assessed. This paper uses
Canadian data from the 1980s to analyse whether inequality estimates are
sensitive to common measurement choices. Seemingly minor technical choices
about the treatment of outlying observations, such as the use of
top-income coded data, exclusion of very high and low observations, and
differences among data sets in the capture of very high observations
affect estimates of inequality. Further, the impact of the treatment of
outlying observations on inequality estimates are at least as large as the
impact of measurement choices of a conceptual nature, such as the income
definition and population selection. The sensitivity of inequality
estimates to measurement choices, which often remain invisible, affect
inferences about the relative degree of inequality at a given point in
time among countries and changes over time.
Journal: Applied Economics
Pages: 845-860
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322183
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322183
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:845-860
Template-Type: ReDIF-Article 1.0
Author-Name: Clive Granger
Author-X-Name-First: Clive
Author-X-Name-Last: Granger
Author-Name: Yongil Jeon
Author-X-Name-First: Yongil
Author-X-Name-Last: Jeon
Title: Model evaluation based on residual analysis of two similar models
Abstract:
Models that may appear to have different properties may in fact produce
residuals that differ only in subtle ways. By analysing the relationships
between model residuals the problems in distinguishing between models can
perhaps be discovered, as illustrated by the econometric examples
considered. Regressing residuals gives the long-memory residual, which is
the difference between two models, but this difference is very subtle and
deeply hidden, which explains why the traditional standard technique does
not find this difference.
Journal: Applied Economics
Pages: 861-867
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322192
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322192
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:861-867
Template-Type: ReDIF-Article 1.0
Author-Name: Li Lian Ong
Author-X-Name-First: Li Lian
Author-X-Name-Last: Ong
Author-Name: Jason Mitchell
Author-X-Name-First: Jason
Author-X-Name-Last: Mitchell
Title: Professors and hamburgers: an international comparison of real academic salaries
Abstract:
In recent years, academic staff unions and associations have argued for
higher salaries for academics on the grounds that existing salaries have
not kept pace with inflation, are well below commercial salaries and, most
glaringly, are much lower than the salaries of their overseas
counterparts. However, most international comparisons are made based on
exchange rate conversions, which is inappropriate since purchasing power
differentials are only reflected in exchange rates in the long term.
Furthermore, the volatility of exchange rates make such conversions highly
inaccurate. A comparison is provided of real academic salaries by
converting the nominal salaries in each country to their purchasing power
equivalents, using the Big Mac Index. Our results show that real academic
salaries are highest in Hong Kong and Singapore, relative to the developed
countries, while Hong Kong tax and social security deductions are lowest.
Furthermore, real salary levels, combined with intrinsic considerations
such as the quality-of-life, indicate that Canada and New Zealand are
unattractive places for visiting/migrating academics, while Australia and
the USA are relatively attractive. It is suggested that these findings
could be of use to policy-makers and academic unions in salary
negotiations, as well as academics making relocation decisions.
Journal: Applied Economics
Pages: 869-876
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322200
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322200
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:869-876
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Vanhoudt
Author-X-Name-First: Patrick
Author-X-Name-Last: Vanhoudt
Title: An assessment of the macroeconomic determinants of inequality
Abstract:
The paper provides an assessment of the determinants of income inequality
in a broader macroeconomic context. In particular the hypothesis that
income inequality is related to fundamentals affecting economic growth is
examined.
Journal: Applied Economics
Pages: 877-883
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322219
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322219
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:877-883
Template-Type: ReDIF-Article 1.0
Author-Name: Jaakko Pehkonen
Author-X-Name-First: Jaakko
Author-X-Name-Last: Pehkonen
Title: Employment, unemployment and output growth in booms and recessions: time series evidence from Finland, 1970-1996
Abstract:
The Finnish economy experienced dramatic changes in the early 1990s. The
collapse of the economy in 1991 resulted in a 12% decline in GDP over the
years 1991-1993, leading to a significant fall in the demand for labour
and a rise in unemployment. The study contributes to the discussion on
possible changes in the functioning of the Finnish economy by scrutinizing
the stability of the employment/unemploymentoutput relation. The empirical
analysis, based on aggregate variables from the period 1975-1996, suggests
that the relationship between aggregate-level employment/ unemployment and
output growth remained relatively stable throughout the investigation
period.
Journal: Applied Economics
Pages: 885-900
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322228
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:885-900
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Jenkins
Author-X-Name-First: Michael
Author-X-Name-Last: Jenkins
Author-Name: Christopher Tsoukis
Author-X-Name-First: Christopher
Author-X-Name-Last: Tsoukis
Title: Nominal inertia and shock persistence in UK business cycles
Abstract:
A structural VAR methodology is used for UK data to identify and map out
the effects of innovations in the money supply, employment, output, wages
and prices. Moreover, bands of two standard errors are computed for the
impulse response functions so that comment may be made on the significance
of the dynamic responses of the variables to the simulated shocks. This
allows conclusions to be drawn on the persistence of shocks. Results
suggest that output variation is largely determined by aggregate demand
shocks over the business cycle frequency. Importantly, evidence is also
found of rigidities in the form of price inertia and nominal wage
stickiness.
Journal: Applied Economics
Pages: 901-907
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322237
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322237
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:901-907
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Giannakas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Giannakas
Author-Name: Kien Tran
Author-X-Name-First: Kien
Author-X-Name-Last: Tran
Author-Name: Vangelis Tzouvelekas
Author-X-Name-First: Vangelis
Author-X-Name-Last: Tzouvelekas
Title: Efficiency, technological change and output growth in Greek olive growing farms: a Box-Cox approach
Abstract:
This paper captures the relative contributions of input growth,
technological change and technical efficiency to olive oil production
growth for a panel data set of 125 Greek olive-growing farms for the
period 1987 to 1993. A flexible generalized quadratic Box-Cox functional
form is proposed to represent the underlying production technology. This
functional specification copes with the problem of zero inputs and nests
all widely used production frontiers. Empirical results show that the
observed production growth is mainly due to increased input use since it
was not accompanied by rapid introduction of technological innovations and
improvements in efficiency levels.
Journal: Applied Economics
Pages: 909-916
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322246
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322246
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:909-916
Template-Type: ReDIF-Article 1.0
Author-Name: Zeynep Onder
Author-X-Name-First: Zeynep
Author-X-Name-Last: Onder
Title: High inflation and returns on residential real estate: evidence from Turkey
Abstract:
This study examines the hedging behaviour of real estate investment in a
high inflationary environment. The hypothesis that the real estate
investment hedges both expected and unexpected inflation is tested. The
returns of investment on residential apartments in several neighbourhoods
in the capital of Turkey are used in the analysis. Expected inflation is
measured by three proxies. It is found that in a high inflationary
environment, real estate investment does not provide hedge against
inflation. A reverse causality between returns on real estate and changes
in expected inflation is not observed. However, a relationship between
real returns and changes in inflationary expectations seem to be different
in relatively low and relatively high income neighbourhoods.
Journal: Applied Economics
Pages: 917-931
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322255
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322255
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:917-931
Template-Type: ReDIF-Article 1.0
Author-Name: Liam Gallagher
Author-X-Name-First: Liam
Author-X-Name-Last: Gallagher
Title: Macroeconomic shocks under alternative exchange rate regimes: the Irish experience
Abstract:
The paper investigates the nature of Irish macroeconomic shocks and their
correlation with German and UK shocks. A restricted VAR of real output and
prices is employed to distinguish aggregate demand and supply shocks for
the three countries. To identify the role of Irish exchange rate policy
two periods are considered: the preERM period and the ERM period. The
results indicate that while the change in exchange rate policy had an
effect on the nature of demand and supply shocks, the ERM did not have the
effect of increasing the correlation of Irish shocks with Germany or the
UK. Evidence of substantial asymmetric shocks with Germany and the UK
exist. Thus, Ireland as a member of the EMU faces increased cost of
adjustment to asymmetric macroeconomic shocks.
Journal: Applied Economics
Pages: 933-944
Issue: 7
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322264
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322264
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Handle: RePEc:taf:applec:v:32:y:2000:i:7:p:933-944
Template-Type: ReDIF-Article 1.0
Author-Name: Walid Hejazi
Author-X-Name-First: Walid
Author-X-Name-Last: Hejazi
Title: Yield spreads as predictors of industrial production: expectations on short rates or term premia?
Abstract:
This paper reconsiders information in the US T-bill term structure for
predicting movements in real monthly industrial production. It is shown
that although T-bill spreads contain little or no predictive content,
increases in term premia estimated from a GARCH-M model of the term
structure do. Since these estimated premia are linear functions of the
conditional variance of excess returns, the implication is that increases
in interest rate variability are associated with reductions in industrial
production. This evidence is robust to the inclusion of the spread between
the 10-year Tbond yield and one-month-T-bill yields. The T-bill term
structure therefore contains information which is independent of the
long-end of the term structure.
Journal: Applied Economics
Pages: 945-951
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400321995
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400321995
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:945-951
Template-Type: ReDIF-Article 1.0
Author-Name: Jane Fry
Author-X-Name-First: Jane
Author-X-Name-Last: Fry
Author-Name: Tim Fry
Author-X-Name-First: Tim
Author-X-Name-Last: Fry
Author-Name: Keith McLaren
Author-X-Name-First: Keith
Author-X-Name-Last: McLaren
Title: Compositional data analysis and zeros in micro data
Abstract:
The application of compositional data analysis methods in economics has
some attraction. The methodology relies upon the use of 'log-ratios' in
the statistical analysis. Such an approach is not possible when the data
to be analysed include observations where the observed budget share is
zero. We, therefore, consider and extend the methods of compositional data
analysis in the situation where the data to be analysed include
observations where the observed budget share is zero. The modified
compositional data methods are discussed both in statistical terms and
through potential economic interpretations of the method. Further, the
modified methodology is applied to the 1988-89 Australian Household
Expenditure Survey yielding estimates for a system of Engel curves.
Journal: Applied Economics
Pages: 953-959
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322002
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:953-959
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Combris
Author-X-Name-First: Pierre
Author-X-Name-Last: Combris
Author-Name: Sebastien Lecocq
Author-X-Name-First: Sebastien
Author-X-Name-Last: Lecocq
Author-Name: Michael Visser
Author-X-Name-First: Michael
Author-X-Name-Last: Visser
Title: Estimation of a hedonic price equation for Burgundy wine
Abstract:
A hedonic price equation and two jury grade equations are estimated for
Burgundy wine. The approach is the same as in an earlier Bordeaux wine
paper (Combris et al., 1997). The data come from an experimental study
that is very similar to the study on Bordeaux wines. The results for the
two wine-growing regions are compared and discussed.
Journal: Applied Economics
Pages: 961-967
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322011
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322011
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:961-967
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Arnade
Author-X-Name-First: Carlos
Author-X-Name-Last: Arnade
Author-Name: Daniel Pick
Author-X-Name-First: Daniel
Author-X-Name-Last: Pick
Title: Seasonal oligopoly power: the case of the US fresh fruit market
Abstract:
What has been ignored in much of the existing studies of oligopoly power
is that market behaviour need not be static in nature, and oligopoly power
in agriculture need not be present in every month of the year. In a market
which is characterized by seasonality and supplied by different sources
during different seasons, it is quite possible to observe oligopoly power
during different months of the year. In this paper, a method for
estimating and testing for seasonal changes in the degree of oligopoly
power is introduced. It was found that in the pear market, oligopoly power
coefficients remain low throughout the year. On the other hand, the grape
market is characterized by higher oligopoly power coefficients and
considerable season variations.
Journal: Applied Economics
Pages: 969-977
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322020
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:969-977
Template-Type: ReDIF-Article 1.0
Author-Name: J. G. Hirschberg
Author-X-Name-First: J. G.
Author-X-Name-Last: Hirschberg
Title: Modelling time of day substitution using the second moments of demand
Abstract:
Time of day (TOD) rates are a commonly used method for peak load pricing
of many services. Such services as; electricity, communications,
transportation, shared computer facilities, and computer networks (i.e.
the Internet), either use, or will use, some form of TOD pricing. However,
TOD rates do not ensure a movement towards economic efficiency unless the
patterns of TOD substitution are known. The model presented here provedes
a method for estimating TOD substitution without the need for rate
experiments that have proven to be both costly and limited by sample
selection bias problems. This model employs the estimated second moment of
demand to estimate a matrix of relative own- and cross-price elasticities
and it can estimate elasticities even when there is no apparent TOD price
variation. The low level of computations required for the estimates allows
the application of a bootstrap procedure to estimate the covariance matrix
of the elasticities. Two applications of this model are presented: a case
of aggregate demand for computer services and a case of an individual
household's electricity demand.
Journal: Applied Economics
Pages: 979-986
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322039
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:979-986
Template-Type: ReDIF-Article 1.0
Author-Name: M. L. Chas-Amil
Author-X-Name-First: M. L.
Author-X-Name-Last: Chas-Amil
Author-Name: J. Buongiorno
Author-X-Name-First: J.
Author-X-Name-Last: Buongiorno
Title: The demand for paper and paperboard: econometric models for the European Union
Abstract:
Cost minimization theory suggests national demand equations for paper and
paperboard in which demand is a negative function of the price of paper
and paperboard, and a positive function of gross national product. A
dynamic version of this model was estimated with data from European Union
countries, for newsprint, printing and writing paper, and other paper and
paperboard. Country-by-country equations proved unstable. Pooling the data
across countries, with dummy variables to account for fixed country
effects, led to well defined short-term and long-term elasticities with
respect to price and gross national product. The hypothesis that income
and price elasticities were the same across the European Union countries
could not be rejected at the 1% significance level, for the three product
groups. From 1969 to 1995, most of the growth in demand had been due to
the growth in national product, while price increases had only a small
negative effect.
Journal: Applied Economics
Pages: 987-999
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322048
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322048
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:987-999
Template-Type: ReDIF-Article 1.0
Author-Name: N. Kulendran
Author-X-Name-First: N.
Author-X-Name-Last: Kulendran
Author-Name: Kenneth Wilson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Wilson
Title: Is there a relationship between international trade and international travel?
Abstract:
This paper investigates, for the first time, whether there is a
relationship between international trade and international travel flows
using time series econometric techniques. Using data for Australia and
four important travel and trading partners, the USA, the UK, NZ and Japan,
the paper tests three specific hypotheses: that business travel leads to
international trade; that international trade leads to international
travel; and that international travel, other than business travel, leads
to international trade. Using cointegration and Granger-causality
approaches the paper finds support for prior beliefs that there is a
relationship between international travel and international trade, and
suggests that this may be a fruitful area for further research.
Journal: Applied Economics
Pages: 1001-1009
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322057
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322057
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1001-1009
Template-Type: ReDIF-Article 1.0
Author-Name: Geoff Riddington
Author-X-Name-First: Geoff
Author-X-Name-Last: Riddington
Author-Name: Colin Sinclair
Author-X-Name-First: Colin
Author-X-Name-Last: Sinclair
Author-Name: Nicola Milne
Author-X-Name-First: Nicola
Author-X-Name-Last: Milne
Title: Modelling choice and switching behaviour between Scottish ski centres
Abstract:
The paper identifies the need to model the skier's choice of centre and
the basic ideas underlying discrete choice models and their estimation. It
then identifies data requirements and sources, the final choice of
specification and the estimated parameters of the resultant nested
multinomial logit model. The results indicate two quite distinct markets.
For day-trippers snow cover, cost, and, to a lesser extent, the journey
length, were the critical factors. For those staying overnight the key
determinant in this market seems to be accommodation. Interestingly
centres which for the day-tripper are competitors, become, for the
overnight customer, complementary.
Journal: Applied Economics
Pages: 1011-1018
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322066
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322066
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1011-1018
Template-Type: ReDIF-Article 1.0
Author-Name: Andre Croppenstedt
Author-X-Name-First: Andre
Author-X-Name-Last: Croppenstedt
Author-Name: Meloria Meschi
Author-X-Name-First: Meloria
Author-X-Name-Last: Meschi
Title: Measuring wage discrimination in Italy: a random-coefficient approach
Abstract:
Using data from a representative 1989 household survey for Italy we
estimate random-coefficient earnings frontiers by gender, marital status
and location. These estimates are used to calculate discrimination
indices. Our results show that fixed coefficients can be rejected in all
cases. A wide range on the estimated coefficients indicates a high degree
of variation in the quality of the observed human-capital variables as
well as different degrees of ability as perceived by the employer. We find
reverse discrimination for single females in the South and the North. For
married females there is evidence of discrimination, particularly in the
South. We isolate the effects of tenure and education on discrimination
and find that these reduce discrimination for Southern-married females.
Journal: Applied Economics
Pages: 1019-1028
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322075
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322075
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1019-1028
Template-Type: ReDIF-Article 1.0
Author-Name: Kyriacos Kyriacou
Author-X-Name-First: Kyriacos
Author-X-Name-Last: Kyriacou
Author-Name: Bryan Mase
Author-X-Name-First: Bryan
Author-X-Name-Last: Mase
Title: Rolling settlement and market liquidity
Abstract:
This paper investigates the impact on UK stock and option markets of the
change from an account based settlement system to a rolling settlement
procedure. Such a change increases the transaction costs of short-term
margin traders, and is likely to impact on the liquidity of the underlying
market, as well as trading in the options market. Evidence is presented
that the settlement procedure does impact on the liquidity of the market.
Further, we find that rolling settlement increased market liquidity,
consistent with the exit of margin traders as a result of the increase in
short selling costs. Associated with this increase in liquidity is a
significant reduction in nonoptionable stock trading volume, implying that
margin trading may have been more prevalent in stocks without options.
Finally, it is shown that while trading in stock options increased, the
volatilities implied from call and put option prices indicate that put
options have become relatively more expensive. This reflects the change in
demand induced by the new settlement procedure, especially in terms of the
increase in short selling costs.
Journal: Applied Economics
Pages: 1029-1036
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322084
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322084
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1029-1036
Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Alberola
Author-X-Name-First: Enrique
Author-X-Name-Last: Alberola
Author-Name: Juan Ayuso
Author-X-Name-First: Juan
Author-X-Name-Last: Ayuso
Author-Name: J. David Lopez-Salido
Author-X-Name-First: J. David
Author-X-Name-Last: Lopez-Salido
Title: When may depreciations fuel inflation? An application to the Spanish case
Abstract:
In this paper it is considered that the relationship between nominal
exchange rate and prices depends on the nature of the shocks impacting the
economy. In order to identify the sources of nominal exchange rate and
relative price fluctuations we impose long-run restrictions on the
dynamics of these variables through a 2-variable and 3-variable SVAR,
respectively. This methodology is applied to data on the Spanish economy
and find that supply and real demand shocks move nominal exchange rates
and relative prices in opposite directions. Nominal shocks, however, move
both variables in the same direction. Thus, in this case, only under
nominal shocks may exchange rate depreciations fuel inflation.
Journal: Applied Economics
Pages: 1037-1049
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322093
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1037-1049
Template-Type: ReDIF-Article 1.0
Author-Name: Javid Taheri
Author-X-Name-First: Javid
Author-X-Name-Last: Taheri
Title: On the alternative explanations of persistence of unemployment in the OECD countries
Abstract:
This paper begins with a summary statement of a few relevant facts about
the worsening state of unemployment since the mid-1970s in the OECD
countries. A joint statistical test of the hypotheses of the natural rate,
hysteresis, and the persistence is conducted by pooling annual data
(1963-93) from up to 16 OECD countries. The results provide strong
evidence in support of the persistence hypothesis and the non-linearity of
the Phillips curve while concurrently rejecting the other two alternative
explanations.
Journal: Applied Economics
Pages: 1051-1057
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322101
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1051-1057
Template-Type: ReDIF-Article 1.0
Author-Name: Bharat Kolluri
Author-X-Name-First: Bharat
Author-X-Name-Last: Kolluri
Author-Name: Michael Panik
Author-X-Name-First: Michael
Author-X-Name-Last: Panik
Author-Name: Mahmoud Wahab
Author-X-Name-First: Mahmoud
Author-X-Name-Last: Wahab
Title: Government expenditure and economic growth: evidence from G7 countries
Abstract:
This paper examines Wagner's Law of Public Expenditure, which emphasizes
economic growth as the fundamental determinant of public sector growth,
using time series data drawn from the G7 industrialized countries over the
sample period 1960 1993. It presents evidence on both the short- and
long-run effects of growth in national income on government expenditure by
resorting to recent developments in the theory of cointegrated processes.
An attempt is also made in this study to examine if Wagner's Law holds
between certain key components of government expenditure and income.
Journal: Applied Economics
Pages: 1059-1068
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322110
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322110
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1059-1068
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Weber
Author-X-Name-First: Andrea
Author-X-Name-Last: Weber
Title: Vacancy durations - a model for employer's search
Abstract:
This paper investigates a Dutch data set on vacancy durations and numbers
of applicants to enquire employers' search strategies. A nonsequential
search process assumes that most vacancies are filled from a pool of
applicants, which is formed shortly after the posting of the vacancy. The
time spent on recruiting applicants and the duration of the selection
process are estimated with a proportional hazard model, via the arrival
and attrition rates of applicants.
Journal: Applied Economics
Pages: 1069-1075
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322129
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1069-1075
Template-Type: ReDIF-Article 1.0
Author-Name: Nasiruddin Ahmed
Author-X-Name-First: Nasiruddin
Author-X-Name-Last: Ahmed
Title: Export response to trade liberalization in Bangladesh: a cointegration analysis
Abstract:
This paper investigates the response of Bangladesh's aggregate
merchandise exports to a real exchange rate-based trade liberalization
programme during the period 1974-1995. The cointegration and error
correction modelling approaches have been applied. The empirical results
suggest that there exists a unique long-run or equilibrium relationship
among real quantities of export, relative export price and export-weighted
real effective exchange rate. The short-term dynamic behaviour of
Bangladesh's export supply has been investigated by estimating an error
correction model in which the error correction term has been found to be
correctly signed and statistically significant. Relative export price
(lagged two quarters), real effective exchange rate, predicted values of
real GDP (lagged one quarter) and a dummy variable capturing the effects
of trade liberalization programme have all emerged as important
determinants of an aggregate export supply function for Bangladesh. The
error correction model has also been found to be robust as it satisfies
all relevant diagnostic tests.
Journal: Applied Economics
Pages: 1077-1084
Issue: 8
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400322138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322138
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Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1077-1084
Template-Type: ReDIF-Article 1.0
Author-Name: George Karatzas
Author-X-Name-First: George
Author-X-Name-Last: Karatzas
Title: On the determination of the US aggregate health care expenditure
Abstract:
Per capita real health care expenditure is examined against three major
groups of explanatory variables: economic, demographic, and health stock,
and it is found that the three groups of variables have an impact on real
health care spending. Other subcategories, such as real private, and
government health care, pharmaceutical, dental, home nursing, ambulatory,
personal medical consumption, and in-patient expenditures have also been
examined, and have been found to be affected by the explanatory variables.
For several subcomponents there is evidence of supplier inducement. Of the
demographic group of variables, the ageing population had an impact only
on the per capita real overall, and private health care outlay, and
pharmaceutical spending. Also, cointegrating relationships were found and
consistent estimators of the elasticities found.
Journal: Applied Economics
Pages: 1085-1099
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404236
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404236
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1085-1099
Template-Type: ReDIF-Article 1.0
Author-Name: J. O. S. Wilson
Author-X-Name-First: J. O. S.
Author-X-Name-Last: Wilson
Author-Name: J. M. Williams
Author-X-Name-First: J. M.
Author-X-Name-Last: Williams
Title: The size and growth of banks: evidence from four European countries
Abstract:
This paper investigates the relationship between size and growth for a
sample of banks from France, Germany, Italy and the UK over the period
1990 to 1996. Using several measures of bank size (total assets, equity
and value of off balance sheet business), we test for size effects on
growth, using models which incorporate the influences of previous growth,
bank type and country of origin. The results of the analysis suggest that
for Italy, small banks tend to grow faster than larger banks. No
relationship is found between bank size and growth for France, Germany and
the UK. This suggests a process of increasing concentration in these
banking systems, even in the absence of bank specific strategic
advantages. Small banks tend to have more variable growth rates than their
larger counterparts. This suggests that large banks may enjoy advantages
associated with diversified operations, which make them less susceptible
to periods of extremely high or low growth.
Journal: Applied Economics
Pages: 1101-1109
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404245
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404245
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1101-1109
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Andrikopoulos
Author-X-Name-First: Andreas
Author-X-Name-Last: Andrikopoulos
Author-Name: John Loizides
Author-X-Name-First: John
Author-X-Name-Last: Loizides
Title: The demand for home-produced and imported alcoholic beverages in Cyprus: the AIDS approach
Abstract:
The purpose of this paper is to investigate the demand and its
composition between home-produced and imported for alcoholic beverages in
Cyprus. The methodological approach used is the Almost Ideal Demand System
(AIDS), both in static and dynamic terms. Empirically, the AIDS, both in
its static and dynamic version, was estimated using time-series
(1970-1992) for three sets of data which include: (1) alcoholic beverages
(wine-beer-other brandies) broken down between home-produced and imported
(model A); (2) alcoholic beverages only without disaggregation between
home-produced and imported (model B), and (3) aggregate alcoholic
beverages (wine-beer-other brandies) and food (model C). Zellner's
iterative estimation procedure was used for estimating the model. The
empirical findings: (1) strongly support the dynamic version of the AIDS
over its static alternative; and (2) provide certain guidelines concerning
economic policies relating to an increase in government revenues and
changing the composition between home-produced and imported consumption of
alcoholic beverages. These basic findings could be considered relevant to
the policy makers in the light of Cyprus' accession to the EU.
Journal: Applied Economics
Pages: 1111-1119
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404254
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404254
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1111-1119
Template-Type: ReDIF-Article 1.0
Author-Name: David Leece
Author-X-Name-First: David
Author-X-Name-Last: Leece
Title: Choice of mortgage instrument, liquidity constraints and the demand for housing debt in the UK
Abstract:
The research uses microdata to estimate reduced form mortgage demand
equations based on truncated regressions, dissagregated by choice of
mortgage instrument. The choice is between a standard annuity mortgage and
a balloon type mortgage (the endowment). The estimates are used to
indicate the differential impact of credit market rationing and financial
liberalization on households. The results indicate significant variations
in mortgage demand by choice of mortgage instrument. Econometric testing
demonstrates that the choice between an endowment and a repayment mortgage
can be used as an exogenous indicator of liquidity and portfolio positions
and different user costs of owner occupation.
Journal: Applied Economics
Pages: 1121-1132
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404263
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404263
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1121-1132
Template-Type: ReDIF-Article 1.0
Author-Name: Allan Layton
Author-X-Name-First: Allan
Author-X-Name-Last: Layton
Author-Name: Daniel Smith
Author-X-Name-First: Daniel
Author-X-Name-Last: Smith
Title: A further note on the three phases of the US business cycle
Abstract:
Using a number of alternative approaches, Sichel (1994) demonstrated
evidence supporting the notion that the US business cycle is best
characterized as having three distinct phases, viz. contraction, followed
by rapid expansion during the early stages of the recovery phase, followed
by a period of more normal expansionary growth, with the cycle then
repeating itself. This contrasts with the more usual
expansion/contraction, two phase characterization but is more in keeping
with the original notion of the business cycle as conceived by Burns and
Mitchell (1946). Here an alternative approach is employed for shedding
light on this issue. Following the original suggestion of Hamilton (1989,
1990, 1991), a simple nonlinear, three phase, regime switching Markov
model is compared against its simpler two phase version to determine which
version is statistically more consistent with the business cycle
historical evidence. The evidence seems to clearly support the three phase
characterization and that this characterization yields interesting
information on business cycle dynamics which is necessarily missed by the
two phase model formulation.
Journal: Applied Economics
Pages: 1133-1143
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404272
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404272
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1133-1143
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dobson
Author-X-Name-First: Stephen
Author-X-Name-Last: Dobson
Author-Name: Bill Gerrard
Author-X-Name-First: Bill
Author-X-Name-Last: Gerrard
Author-Name: Simon Howe
Author-X-Name-First: Simon
Author-X-Name-Last: Howe
Title: The determination of transfer fees in English nonleague football
Abstract:
In recent years a number of studies have analysed the player transfer
market in English professional football. This paper examines whether
similar factors operate to determine transfer fees in the
semiprofessional, or nonleague, game. An empirical model of the nonleague
player transfer market is developed in which observed transfer fees are
determined by player characteristics, time effects, selling-club
characteristics and buying-club characteristics. Using data on 114
transfer fees covering the period 1988 to 1997, we find evidence that the
data generating process for transfer fees is broadly similar in both
professional and nonleague football.
Journal: Applied Economics
Pages: 1145-1152
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404281
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404281
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1145-1152
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Conrad
Author-X-Name-First: Klaus
Author-X-Name-Last: Conrad
Title: An econometric model of production with endogenous improvement in energy efficiency, 1970-1995
Abstract:
The purpose of this paper is to introduce a modification of a standard
four input production process where energy is used in an inefficient way
due partly to unnecessary waste of energy. In this production process, R&D
investment is an additional input in order to improve energy efficiency.
It closes the gap between energy purchased and energy used effectively.
The more is invested, the less is the waste of energy. With the cost and
benefit of R&D investment incorporated in our model of the firm, we
analyse the impact of an energy tax on R&D effort, on output and on the
waste of energy. The model is implemented empirically by choosing a
translog cost function and a set of first-order conditions, using data for
the German chemical industry, 1970-1995. In a simulation study based on
higher energy prices we found outsourcing as the consequent reaction of
the firm- more material is used and less of energy, labour, and capital,
given the unchanged output level. There is no indication of a double
dividend in terms of environmental improvement as well as higher demand
for labour on the industry level calling for a computable general
equilibrium approach in order to answer this open question.
Journal: Applied Economics
Pages: 1153-1160
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404290
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404290
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1153-1160
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Gripaios
Author-X-Name-First: Peter
Author-X-Name-Last: Gripaios
Author-Name: Paul Bishop
Author-X-Name-First: Paul
Author-X-Name-Last: Bishop
Author-Name: Sarah Keast
Author-X-Name-First: Sarah
Author-X-Name-Last: Keast
Title: Differences in GDP per head in GB counties: some suggested explanations
Abstract:
This paper examines the evidence concerning the convergence of gross
domestic product (GDP) per head across GB counties during 1977-1995. In
general, the evidence rejects the hypothesis of convergence although there
is some evidence of a north-south divide with γ convergence in the
north in the 1990s. Cross-section results suggest that variation in GDP
per head may be related to different economic activity rates and some
aspects of industrial structure.
Journal: Applied Economics
Pages: 1161-1167
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404308
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404308
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1161-1167
Template-Type: ReDIF-Article 1.0
Author-Name: Guzin Erlat
Author-X-Name-First: Guzin
Author-X-Name-Last: Erlat
Title: Measuring the impact of trade flows on employment in the Turkish manufacturing industry
Abstract:
This paper investigates the impact of export and import flows on the
change in manufacturing employment using an accounting-identity based
approach which enables the change in employment to be decomposed into the
contribution made not only by trade but also by domestic consumption and
productivity change. The analysis is carried over (i) four subperiods, two
belonging to the period before 1980 when Turkey switched from a regime of
import-substitution based growth to one of export-orientation, and the
other two, to the period after 1980, and (ii) three tradebased categories;
net exporting, import competing and noncompeting sectors. It is found (a)
that trade has a more significant role to play in employment change in the
post-1980 periods, (b) that this is observed more in the net exporting and
noncompeting categories rather than the import competing category, and (c)
that the switch to export-oriented growth in 1980 did not lead to
export-based employment to be dominant in employment changes but has acted
as a buffer in the sense that employment may either have grown much less
or declined more severely if the post-1980 expansion of exports had not
occurred.
Journal: Applied Economics
Pages: 1169-1180
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404317
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404317
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1169-1180
Template-Type: ReDIF-Article 1.0
Author-Name: Farrokh Nourzad
Author-X-Name-First: Farrokh
Author-X-Name-Last: Nourzad
Title: The productivity effect of government capital in developing and industrialized countries
Abstract:
This paper uses an aggregate production function to examine the effect of
government capital formation on growth of labour productivity in an annual
panel of 12 developing and 12 OECD economies covering the period
1976-1989. The results from a pooled model of all 24 countries indicate
that contribution of government capital to labour productivity is positive
and statistically significant. This result also holds in separate samples
of the industrialized and developing economies where we find that, while
there are productivity differentials between the two types of economies
with respect to private capital, there are no differences with regards to
public capital.
Journal: Applied Economics
Pages: 1181-1187
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404326
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404326
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1181-1187
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: Kent Lanclos
Author-X-Name-First: Kent
Author-X-Name-Last: Lanclos
Title: Trade in imperfectly competitive industries: the role of market size and consumer preferences
Abstract:
This study presents theoretical and empirical analyses of market size and
consumer preference asymmetries to examine the implications of trade and
trade policies for imperfectively competitive food manufacturing sectors.
The results show that the effects of trade reforms on imperfectly
competitive product trade are counter intuitive if a significant portion
of food trade is attributed to market size and preference asymmetries. For
example, countries with smaller market gain relatively more from trade
liberalization than countries with larger markets because export market
opportunities are greater for small countries than for large countries.
Journal: Applied Economics
Pages: 1189-1200
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404335
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404335
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1189-1200
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Ennis
Author-X-Name-First: Sean
Author-X-Name-Last: Ennis
Author-Name: Michael Schoenbaum
Author-X-Name-First: Michael
Author-X-Name-Last: Schoenbaum
Author-Name: Theodore Keeler
Author-X-Name-First: Theodore
Author-X-Name-Last: Keeler
Title: Optimal prices and costs for hospitals with excess bed capacity
Abstract:
This paper analyses theoretically and empirically issues in optimal
pricing with excess hospital capacity, and then applies the analysis to
the issue as to whether Medicare and Medicaid payments cover the marginal
costs of treating patients of each type. The primary innovation of this
paper lies in incorporating appropriate theoretical measures of hospital
excess capacity to a multiproduct empirical hospital cost function, and in
showing how proper measures of marginal cost can be applied to the
examples of Medicare and Medicaid reimbursement in California. With a
standard translog specification that ignores hospital excess capacity, the
estimated marginal costs of Medicare and Medicaid patients are higher than
the reimbursement. However, correctly incorporating excess capacity into
our model leads to considerably lower estimates of short-run marginal
costs, suggesting that Medicare hospital reimbursement is more than
adequate in the short run. We also develop a third marginal cost concept,
that of what long-run marginal costs would be ifexcess capacity were
eliminated. This is the most theoretically appropriate measure of optimum
long-run reimbursement; Medicare reimbursement also covers this measure of
costs. The extent to which Medicare reimbursement covers costs thus
depends crucially on whether capacity is assumed fixed or variable.
Similar examples are presented for Medicaid.
Journal: Applied Economics
Pages: 1201-1212
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404344
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404344
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1201-1212
Template-Type: ReDIF-Article 1.0
Author-Name: Hao-Yen Yang
Author-X-Name-First: Hao-Yen
Author-X-Name-Last: Yang
Title: Carbon-reducing taxes and income inequality: general equilibrium evaluation of alternative energy taxation in Taiwan
Abstract:
Recently, several studies have been a detailed evaluation of the economic
implications of energy taxation as a policy instrument to conserve energy
and reduce carbon emissions. However, little attention has been devoted to
inquiring about the economic implications of energy taxation in the newly
industrialized countries (the so-called NICs). In this paper, we use a
multisector, multihousehold computable general equilibrium model to assess
the distributional effects of alternative energy taxation on the Taiwan
economy. The counterfactual simulation technique is applied to investigate
the income distribution implications of: (1) an increase in the import
taxes of crude oil; and (2) an increase in the excise taxes of petroleum
products. Our empirical results basing on Taiwan's data show that both
energy taxes increase government revenue and the Gini coefficient, but
reduce net value-added, private consumption, disposable income and
equivalent variation. A raise in the Gini coefficient implies that there
is a worsening in the distribution of income. The lowest income group
suffers relatively large welfare and income loss, but the highest income
group suffers a relatively small welfare and income loss. The
distributional effects differ from household to household depending on the
composition of their total consumption and the source of their factor
income. Our findings reveal that the energy tax appears to be mildly
regressive, there are broadly consistent with those cases of developed
countries reported in previous studies.
Journal: Applied Economics
Pages: 1213-1221
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404353
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1213-1221
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Archibald
Author-X-Name-First: Robert
Author-X-Name-Last: Archibald
Author-Name: David Feldman
Author-X-Name-First: David
Author-X-Name-Last: Feldman
Author-Name: Marc Hayford
Author-X-Name-First: Marc
Author-X-Name-Last: Hayford
Author-Name: Carl Pasurka
Author-X-Name-First: Carl
Author-X-Name-Last: Pasurka
Title: Effective rates of protection and the Fordney-McCumber and Smoot-Hawley Tariff Acts: comment and revised estimates
Abstract:
This paper provides corrected calculations of the effective rate of
protection for a wide disaggregation of US industries under the two
important interwar tariff regimes.
Journal: Applied Economics
Pages: 1223-1226
Issue: 9
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404362
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404362
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Handle: RePEc:taf:applec:v:32:y:2000:i:9:p:1223-1226
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Fix
Author-X-Name-First: Peter
Author-X-Name-Last: Fix
Author-Name: John Loomis
Author-X-Name-First: John
Author-X-Name-Last: Loomis
Author-Name: Rick Eichhorn
Author-X-Name-First: Rick
Author-X-Name-Last: Eichhorn
Title: Endogenously chosen travel costs and the travel cost model: an application to mountain biking at Moab, Utah
Abstract:
The travel cost model is frequently used to estimate net willingness to
pay for recreation at remote sites by using the visitor's travel costs as
a proxy for the price of recreation. However, some concern has been raised
over the validity of using the visitor's stated travel costs as a proxy
for price. This paper addresses some of these concerns, by examining the
possible over-estimation of consumer surplus due to endogenously chosen
travel costs. This paper extends past theoretical work for the linear
model by developing a correction for endogenously chosen travel costs in
more commonly used nonlinear models such as the Poisson or count data
model. Also provided is the first empirical test of the presence of
endogeneity and an estimate of the magnitude of the error from ignoring
endogeneity in travel costs. After applying this test and the correction
to data that was gathered for mountain biking at Moab, Utah the estimate
of consumer surplus falls from US $153 to US $135, which is a 12%
reduction.
Journal: Applied Economics
Pages: 1227-1231
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404371
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404371
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1227-1231
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Kratena
Author-X-Name-First: Kurt
Author-X-Name-Last: Kratena
Title: Sectoral shifts and unemployment persistence
Abstract:
This paper deals with possible explanations of unemployment persistence
within a sectoral approach to the Austrian labour market. First the
concept of unemployment persistence is specified in terms of the time
series properties of the unemployment rate. Sectoral job gains and job
losses form the labour market flows in this approach. The standard
matching model is replaced then by a model of the competition between the
unemployed and new entrants in the labour market for new jobs as an
'adding up' demand system of the AIDS type. The estimations of different
system specifications indicate, that the sectoral structure of job gains
plays a role in the competition mechanism between unemployed workers and
new entrants.
Journal: Applied Economics
Pages: 1233-1240
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404380
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404380
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1233-1240
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Huttin
Author-X-Name-First: Christine
Author-X-Name-Last: Huttin
Title: A cluster analysis on income elasticity variations and US pharmaceutical expenditures
Abstract:
This paper examines the relationship between household income and
outpatient prescribed medicines in the USA based on a sample of 2872
privately insured patients, from the 1987 NMES data set. The analysis is
performed on regional typologies of different socioeconomic profiles of
patients. Only a few groups show positive income elasticity.
Journal: Applied Economics
Pages: 1241-1247
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404399
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404399
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1241-1247
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Martin-Marcos
Author-X-Name-First: Ana
Author-X-Name-Last: Martin-Marcos
Author-Name: Cristina Suarez-Galvez
Author-X-Name-First: Cristina
Author-X-Name-Last: Suarez-Galvez
Title: Technical efficiency of Spanish manufacturing firms: a panel data approach
Abstract:
This paper estimates the levels of technical efficiency reached by
Spanish manufacturing firms, through an econometric estimation of frontier
production functions for fifteen sectors of activity, and also, obtains
other relevant technological measurements of these productive processes
such as the scale and the technical progress parameters. The methodology
used is the panel data methods (Schmidt and Sickles, 1984). The
statistical source is provided by the Survey on Business Strategies
(Encuesta Sobre Estrategias Empresariales), a panel of data covering 855
Spanish manufacturing firms observed over the period 1990-1994. Our
econometric results confirm the great heterogeneity in the firms'
efficiency, the predominance of constant returns to scale and the great
rate of technological progress.
Journal: Applied Economics
Pages: 1249-1258
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404407
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404407
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1249-1258
Template-Type: ReDIF-Article 1.0
Author-Name: James Love
Author-X-Name-First: James
Author-X-Name-Last: Love
Author-Name: Francisco Lage-Hidalgo
Author-X-Name-First: Francisco
Author-X-Name-Last: Lage-Hidalgo
Title: Analysing the determinants of US direct investment in Mexico
Abstract:
In this paper a simple model of foreign direct investment is developed
and tested on investment flows from the USA to Mexico between 1967 and
1994 using cointegration analysis. Domestic demand and relative factor
costs are found to influence direct investment flows, suggesting support
for both the 'cheap labour' and 'market size' hypotheses. The short-run
dynamics of the model indicate that exchange rate movements have an effect
on the timing of the investment decision.
Journal: Applied Economics
Pages: 1259-1267
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404416
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404416
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1259-1267
Template-Type: ReDIF-Article 1.0
Author-Name: Nandinee Kutty
Author-X-Name-First: Nandinee
Author-X-Name-Last: Kutty
Title: The production of functionality by the elderly: a household production function approach
Abstract:
This paper extends Becker's model of the household production function of
human capital to the production of elderly functionality. In this model,
elderly functionality is produced with the direct inputs of assistive
devices, personal assistance, and nutritional intake. Education, endowment
variables (like genetic endowment and sex) and health conditions (like
stroke) determine the production function environment. Data from the
Survey of Asset and Health Dynamics Among the Oldest-Old (AHEAD) are used
to estimate a production function of bathing functionality, using a
two-stage estimation procedure. In the first stage, input demands for the
endogenous functionality inputs are estimated, recognizing health
heterogeneity. The results suggest that reverses in functionality caused
by age and health conditions can be partially compensated for by the use
of assistive devices (like grab bars and bathing equipment), secure
nutritional intake, and moderate alcohol consumption. However, non-inputs
like chronic health conditions, age, sex and genetic endowment exert a
strong influence on the level of functionality.
Journal: Applied Economics
Pages: 1269-1280
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404425
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404425
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1269-1280
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Tiffin
Author-X-Name-First: Richard
Author-X-Name-Last: Tiffin
Author-Name: P. J. Dawson
Author-X-Name-First: P. J.
Author-X-Name-Last: Dawson
Title: Structural breaks, cointegration and the farm-retail price spread for lamb
Abstract:
This paper examines the farm—retail price spread for lamb from
monthly UK data for 1979-1993. Using cointegration, it examines seasonal
patterns in producer and retail prices and seeks to identify a long-run
relationship between them. Results show that a long-run relationship
exists, and that the direction of Granger-causality is from retail to
producer prices. Lamb prices are therefore set in the retail market.
Results also show that there is a structural break in the relationship in
January 1990 when the price increases; this coincides exactly with a
change in policy.
Journal: Applied Economics
Pages: 1281-1286
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404434
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404434
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1281-1286
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Scott
Author-X-Name-First: Peter
Author-X-Name-Last: Scott
Author-Name: Guy Judge
Author-X-Name-First: Guy
Author-X-Name-Last: Judge
Title: Cycles and steps in British commercial property values
Abstract:
This paper examines cyclical behaviour in commercial property values over
the period 1956 to 1996, using a structural times series (unobserved
components) approach. The influence of the transition to short rent
reviews during the late 1960s and the short and long-term impacts of the
1974 and 1990 property crashes are also incorporated into the analysis,
via dummy variables. It is found that once these variables are taken into
account a fairly regular cyclical pattern can be discerned, with a period
of about 7.8 years. Furthermore, the 1974 and 1990 property crashes are
shown to have had a major long-term impact on property value growth
(presumably via their influence on investors' expectations).
Journal: Applied Economics
Pages: 1287-1297
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404443
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404443
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1287-1297
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gausden
Author-X-Name-First: Robert
Author-X-Name-Last: Gausden
Author-Name: Ian Alan Whitfield
Author-X-Name-First: Ian Alan
Author-X-Name-Last: Whitfield
Title: Testing the stochastic implications of the life cycle-permanent income hypothesis using UK regional time-series data
Abstract:
This paper applies exclusion tests of the pure life
cycle—permanent income hypothesis (LCPIH) to time-series data on
each of the eleven standard regions of the UK. Data are annual and extend
from 1975 to 1994. The results obtained suggest that there are
considerable differences in consumption behaviour across the regions.
Theory has indicated that a departure of consumption behaviour from that
predicted by the LCPIH can occur because of a change in unemployment.
Consequently, a comparison is undertaken of the empirical results obtained
for the eleven regions and the respective unemployment movements.
Following this comparison, it is possible to conclude that the contrasting
unemployment experiences of the regions of the UK have contributed
significantly to, yet cannot account for fully, the observed differences
in consumption behaviour.
Journal: Applied Economics
Pages: 1299-1310
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404452
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404452
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1299-1310
Template-Type: ReDIF-Article 1.0
Author-Name: James Alleman
Author-X-Name-First: James
Author-X-Name-Last: Alleman
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Scott Savage
Author-X-Name-First: Scott
Author-X-Name-Last: Savage
Title: Trade imbalance in international message telephone services
Abstract:
An econometric model is estimated to identify determinants of trade
imbalance in international message telephone services markets. Results
indicate that asymmetric market structure is important in explaining
bilateral market imbalances for high income country pairs. For low and
high income country pairs, GDP per capita is the dominant cause of traffic
imbalances. The findings suggest that telecommunications liberalization
policies are effective in reducing distortions in international traffic
flows and settlement payments. However, liberalization should be
accompanied by developmental programmes that enhance income per capita and
telecommunications network investment in developing countries. Such
programmes may be effective in providing a more equitable distribution of
the gains from telecommunications reform across countries.
Journal: Applied Economics
Pages: 1311-1321
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404461
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404461
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1311-1321
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Abutaleb
Author-X-Name-First: Ahmed
Author-X-Name-Last: Abutaleb
Author-Name: Michael Papaioannou
Author-X-Name-First: Michael
Author-X-Name-Last: Papaioannou
Title: Maximum likelihood estimation of time-varying parameters: an application to the Athens Stock Exchange index
Abstract:
The problem of maximum likelihood estimation of time-varying parameters
is considered. A hierarchical approach is proposed that involves, first,
the estimation of the model order and parameters when they are assumed
time-invariant. Second, for each parameter, an autoregressive (AR) model,
with constant coefficients, is developed. This allows the parameters to
change over time. Finally, the estimates of the AR coefficients for each
parameter are used as initial conditions to a time-varying model with AR
coefficients, which are allowed to change over time subject to some
regularity constraints. This approach is then applied to the Athens Stock
Exchange index, where the dominant forces affecting this index are
analysed.
Journal: Applied Economics
Pages: 1323-1328
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404470
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404470
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1323-1328
Template-Type: ReDIF-Article 1.0
Author-Name: Pinuccia Calia
Author-X-Name-First: Pinuccia
Author-X-Name-Last: Calia
Author-Name: Elisabetta Strazzera
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Strazzera
Title: Bias and efficiency of single versus double bound models for contingent valuation studies: a Monte Carlo analysis
Abstract:
The dichotomous choice contingent valuation method can be used either in
the single or double bound formulation. The former is easier to implement,
while the latter is known to be more efficient. We analyse the bias of the
ML estimates produced by either model, and the gain in efficiency
associated to the double bound model, in different experimental settings.
We find that there are no relevant differences in point estimates given by
the two models, even for small sample size. The greater efficiency of the
double bound is confirmed, although differences tend to reduce by
increasing the sample size. Provided that a reliable pretest is conducted,
and the sample size is large, use of the single rather than the double
bound model is warranted.
Journal: Applied Economics
Pages: 1329-1336
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404489
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404489
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1329-1336
Template-Type: ReDIF-Article 1.0
Author-Name: Quentin Wodon
Author-X-Name-First: Quentin
Author-X-Name-Last: Wodon
Title: Microdeterminants of consumption, poverty, growth, and inequality in Bangladesh
Abstract:
Using in a consistent way the household level data of five successive
national surveys, this paper analyses at once the microdeterminants (and
changes thereof) of consumption, poverty, growth, and inequality in
Bangladesh from 1983 to 1996. Education, demographics, land ownership,
occupation, and geographic location all affect consumption and poverty.
The gains in per capita consumption associated with many of these
household characteristics tend to be stable over time. Demographics have
had the largest impact on growth. Education (in urban areas) and land (in
rural areas) contribute the most to measures of conditional between group
inequality, a new concept introduced in the paper to avoid the pitfalls of
traditional group decompositions of the Gini index, followed by location
in both sectors.
Journal: Applied Economics
Pages: 1337-1352
Issue: 10
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400404498
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400404498
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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1337-1352
Template-Type: ReDIF-Article 1.0
Author-Name: Tim Kuypers
Author-X-Name-First: Tim
Author-X-Name-Last: Kuypers
Title: Information and efficiency: an empirical study of a fixed odds betting market
Abstract:
The efficiency of the fixed odds betting market for football in England
is investigated. It is the efficiency of how market participants utilize
available information that is tested. A model of bookmaker behaviour is
presented in which the bookmaker maximizes their expected share of the
total amount bet. It is found that an expected profit maximizing bookmaker
could set market inefficient odds. Several empirical tests using the
ordered probit model with data on prices and publicly available
information are carried out. Evidence of market inefficiency is identified
offering profitable betting opportunities.
Journal: Applied Economics
Pages: 1353-1363
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151449
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151449
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1353-1363
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Kargbo
Author-X-Name-First: Joseph
Author-X-Name-Last: Kargbo
Title: Impacts of monetary and macroeconomic factors on food prices in eastern and southern Africa
Abstract:
Eastern and southern Africa has been experiencing relatively large
increases in real food prices since the early 1980s. Real food prices in
some African countries grew as much as 11% per year during the 1980-1996
period. The huge volatility in food prices coincided with the
implementation of structural adjustment programmes in several African
countries. This study examines the impacts of monetary and macroeconomic
factors on real food prices in eastern and southern Africa. Using the
technique of cointegration and error correction modelling to test the
long-run relationship between real food prices and the factors that
influence their behaviour in selected African countries. Demand
elasticities for food are estimated for selected countries. The empirical
results show that changes in domestic food production, coupled with
income, trade, exchange rate and monetary policies have significant
impacts on real food prices, with wide implications for food availability
and food security in the region.
Journal: Applied Economics
Pages: 1373-1389
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151467
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151467
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1373-1389
Template-Type: ReDIF-Article 1.0
Author-Name: Tomokazu Arita
Author-X-Name-First: Tomokazu
Author-X-Name-Last: Arita
Author-Name: Philip McCann
Author-X-Name-First: Philip
Author-X-Name-Last: McCann
Title: Industrial alliances and firm location behaviour: some evidence from the US semiconductor industry
Abstract:
This study uses a log-linear model in order to analyse data on interfirm
strategic alliances within the US semiconductor industry. The findings
suggest that although the finding that the intensity of information
transaction between firms is directly associated with geographical
proximity, this effect is much less localized than would be usually
expected. The results cast doubt on much of the existing qualitative
literature on the nature of agglomeration externalities.
Journal: Applied Economics
Pages: 1391-1403
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151476
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151476
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1391-1403
Template-Type: ReDIF-Article 1.0
Author-Name: Noelle Doss
Author-X-Name-First: Noelle
Author-X-Name-Last: Doss
Author-Name: Helen Cabalu
Author-X-Name-First: Helen
Author-X-Name-Last: Cabalu
Title: When east meets south: economic gains from India-APEC trade
Abstract:
As India, potentially one of the largest economies in the world, seeks
membership to the Asia Pacific Economic Cooperation forum (APEC), a case
for its inclusion in an expanded APEC is examined. The methodology and
empirical design as developed in Marwah and Klein (1995) within the
framework of a world trade matrix consists of seven regions divided into
India, components of APEC, and the rest of the world. The growth of
economic cohesiveness within APEC between 1965 and 1995 is quantitatively
assessed by patterns of trade linkages through measures of bilateral
reciprocity, multilateralism, and market diversification. Entropy indexes
of the trade matrix are computed and used in the analysis. Since 1991,
when massive economic reforms were implemented, India has experienced
strong growth in exports and in imports, a departure from its previous
performance. Furthermore, its external orientation has shifted positively
and significantly since the reforms. Despite this, during the latest five
years, India's integration with APEC hadn't changed to a level of
statistical significance. The case for an expanded APEC, including India,
is still somewhat prospective but the evidence is growing that it could
prove beneficial to all the member countries. For India to benefit in this
expanded APEC, it should continue to press its case for inclusion in the
Asia Pacific Economic Cooperation forum (APEC).
Journal: Applied Economics
Pages: 1405-1418
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151485
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151485
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1405-1418
Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton
Author-X-Name-First: James
Author-X-Name-Last: Thornton
Title: Physician choice of medical specialty: do economic incentives matter?
Abstract:
In this paper, a probabilistic discrete choice approach is used to
examine the influence of economic and non-economic factors on the choice
of medical specialty by new physicians. A two level nested logit model is
estimated that relaxes the independence from irrelevant alternatives
assumption, and allows for a potentially more realistic pattern of
substitution across specialty choices. The results from this specification
are compared to those obtained from joint and conditional logit models.
The findings, which are relatively robust across models, indicate that
economic incentives play an important role in the specialty choice
process, in particular, expected hours worked and medical school
indebtedness. Physician tastes for specialties also appear to have an
important influence.
Journal: Applied Economics
Pages: 1419-1428
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151494
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151494
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1419-1428
Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Meliciani
Author-X-Name-First: Valentina
Author-X-Name-Last: Meliciani
Title: The relationship between R&D, investment and patents: a panel data analysis
Abstract:
This paper estimates the effect of research and investment activities on
patents across countries, industries and over time, using Poisson and
negative binomial distribution models. The first result of the paper is
the recognition of the importance of investment activities in contributing
to technical change. The positive role of research expenditures is also
confirmed but its elasticity is found to be lower than in previous
studies. Important differences across sectors emerge: research
expenditures are found to be more effective in generating patents in
science based industries, while investment is particularly significant in
supplier dominated and production intensive industries. Finally, in most
sectors, the estimated R&D and investment coefficients lie outside the
confidence intervals calculated around the pooled coefficients.
Journal: Applied Economics
Pages: 1429-1437
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151502
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151502
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1429-1437
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Carruth
Author-X-Name-First: Alan
Author-X-Name-Last: Carruth
Author-Name: Jose Roberto Sanchez-Fung
Author-X-Name-First: Jose Roberto
Author-X-Name-Last: Sanchez-Fung
Title: Money demand in the Dominican Republic
Abstract:
This paper investigates a demand for money relationship for the Dominican
Republic. The financial system of the Dominican Republic is
underdeveloped, and there are no suitable domestic data on the opportunity
cost of holding money. Economic links with the USA suggest a possible role
for a foreign interest rate effect and a currency substitution effect in
the demand for domestic money. A long-run demand for money relationship is
developed from the perspective of alternative estimation methodologies,
and it is shown that a 'literature standard' specification augmented by
foreign monetary variables is robust. The ensuing short-run dynamic model
is adequate, stable and suggests an important role for expected inflation,
and a real bilateral exchange rate with the USA. A number of policy
implications for the Dominican Republic are drawn from the results.
Journal: Applied Economics
Pages: 1439-1449
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151511
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151511
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1439-1449
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Boardman
Author-X-Name-First: Anthony
Author-X-Name-Last: Boardman
Author-Name: Claude Laurin
Author-X-Name-First: Claude
Author-X-Name-Last: Laurin
Title: Factors affecting the stock price performance of share issued privatizations
Abstract:
Shareholders in many share issued privatizations (SIPs) have enjoyed
substantial increases in the value of their investments. This study
examines the factors that influence the long-run stock price performance
of an international sample of SIPs, focusing on three-year buy and hold
returns. After controlling for market-wide changes in stock prices, one
finds that the relative size of the company has a negative effect on stock
price performance, retained government ownership has a positive effect,
the presence of a golden share has a negative effect, initial underpricing
has a positive effect, and the timing of the privatization has no effect.
Performance also depends on the industry and home country.
Journal: Applied Economics
Pages: 1451-1464
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151520
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151520
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1451-1464
Template-Type: ReDIF-Article 1.0
Author-Name: Indira Kadyrkanova
Author-X-Name-First: Indira
Author-X-Name-Last: Kadyrkanova
Author-Name: David Bessler
Author-X-Name-First: David
Author-X-Name-Last: Bessler
Author-Name: John Nichols
Author-X-Name-First: John
Author-X-Name-Last: Nichols
Title: On milk prices in Kyrgyzstan
Abstract:
Dynamic relationships among weekly retail prices for milk from three
regions of Kyrgyzstan are studied in an error correction framework.
Observational data over the period January 1995 - May 1999 are used in the
analysis. Results show that prices from the oblasts of Issyk-Kul and
Djalal-Abad form one long-run cointegration relationship, with prices from
Issyk-Kul exhibiting the property of weak exogeneity. Prices from the Osh
oblast are not part of this relationship. These results are related to the
levels of state-run milk marketing facilities versus private-run milk
marketing facilities and surplus versus deficit milk production in each
region.
Journal: Applied Economics
Pages: 1465-1473
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151539
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151539
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1465-1473
Template-Type: ReDIF-Article 1.0
Author-Name: Efthymios Tsionas
Author-X-Name-First: Efthymios
Author-X-Name-Last: Tsionas
Title: Real convergence in Europe. How robust are econometric inferences?
Abstract:
The paper examines the convergence properties of productivity in fifteen
European countries over the period 1960-1997. European productivity is
estimated using modified translog production systems with a completely
general intertemporal structure. To capture the notion that trade may have
an influence on aggregate convergence, imports are included in the
production function. Stationarity tests are used to test for convergence
around a common long-run trend, including unit root tests, the KPSS and
Bayesian tests, as well as testing based on fractional differencing
parameter estimation for long memory models. It is found that convergence
inferences are sensitive to the type of test employed.
Journal: Applied Economics
Pages: 1475-1482
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151548
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151548
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1475-1482
Template-Type: ReDIF-Article 1.0
Author-Name: Pooran Lall
Author-X-Name-First: Pooran
Author-X-Name-Last: Lall
Author-Name: Allen Featherstone
Author-X-Name-First: Allen
Author-X-Name-Last: Featherstone
Author-Name: David Norman
Author-X-Name-First: David
Author-X-Name-Last: Norman
Title: Productive efficiency and growth policies for the Caribbean
Abstract:
Productive (economic) efficiency and factors affecting it was evaluated
in the Caribbean between 1983 to 1992. Results from non-parametric
programming indicated that efficiency (i.e. pure technical, allocative and
economic) measures were lower and more variable in Caribbean than in other
Western Hemisphere countries (i.e. North America and Latin America). Tobit
regression analysis indicated higher levels of private and foreign
investments, productive infrastructure, credit availability, education
level, and consumption of domestically produced goods had positive impacts
on the efficiency measures. On the other hand, higher levels of public
expenditure, income tax, and export taxes, and higher inflation rates had
negative effects. These results support the current trend towards
advocating more open economies (i.e. letting the free market work) and
encouraging governments to confine their functions to
facilitative/regulatory type roles and to undertaking tasks that are not
generally undertaken by the private sector (e.g. developing
infrastructure, providing education). Although, generally, the same
factors were associated with efficiency in the Caribbean and Latin
America, their relative impacts differed. Consequently, in order to
improve efficiency in the Caribbean countries, relatively greater emphasis
should be placed on encouraging foreign and private investment and
developing infrastructure than would be the case in Latin American
countries.
Journal: Applied Economics
Pages: 1483-1493
Issue: 11
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050151557
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151557
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Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1483-1493
Template-Type: ReDIF-Article 1.0
Author-Name: William Putsis
Author-X-Name-First: William
Author-X-Name-Last: Putsis
Author-Name: Subrata Sen
Author-X-Name-First: Subrata
Author-X-Name-Last: Sen
Title: Should NFL blackouts be banned?
Abstract:
In this paper, the authors examine the economic and policy implications
of the National Football League (NFL) 'blackout rule,' a league rule that
prohibits local television broadcast of games that are not sold out at
least 72 hours prior to game time. The foundation for understanding and
assessing the impact of the blackout rule is an analysis of attendance
using data on games during the 1996-1997 National Football League season.
Expanding on previous research, three separate components of attendance
(season ticket sales, game day ticket sales, and game day noshows) are
examined in detail. Accounting for the endogeneity of key variables, Tobit
and Probit analyses are used to estimate and predict individual game
attendance. These empirical estimates are then used as a vehicle to assess
the implications of game day blackouts and the potential for public policy
intervention. More specifically, the authors begin by estimating the
impact of the blackout on game day attendance. Using these estimates, they
assess the implications of imposing a local blackout for individual team
revenues. The gain in on-site stadium revenue due to the blackout (e.g.,
through additional ticket and concession sales) are then viewed in the
broader context of the societal loss due to the game not being broadcast
in the local area. The empirical results suggest that the gain in team
revenue is small in comparison to the loss of viewership rights. This
suggests that public policy intervention may be possible that would result
in a Pareto superior market outcome. The paper concludes by exploring
possible intervention strategies.
Journal: Applied Economics
Pages: 1495-1507
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418907
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418907
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1495-1507
Template-Type: ReDIF-Article 1.0
Author-Name: Sang-Kuck Chung
Author-X-Name-First: Sang-Kuck
Author-X-Name-Last: Chung
Title: Asymptotics of trend stationary fractionally integrated ARMA models
Abstract:
The main contribution of this study is to provide asymptotic results for
MLE applied to the trend stationary ARFIMA model and to implement a
detailed simulation study. For small sample sizes, the bias for the
fractional parameter, d, can be quite substantial when the other
parameters are also estimated simultaneously.
Journal: Applied Economics
Pages: 1509-1514
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418916
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418916
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1509-1514
Template-Type: ReDIF-Article 1.0
Author-Name: Shandre Mugan Thangavelu
Author-X-Name-First: Shandre Mugan
Author-X-Name-Last: Thangavelu
Author-Name: David Owyong
Author-X-Name-First: David
Author-X-Name-Last: Owyong
Title: Impact of public capital on the manufacturing productive performance of Japanese industries
Abstract:
The paper analyses the impact of public capital on the Japanese
manufacturing industries from 1970 to 1995. Unlike previous studies, which
are based mostly on economy-wide analysis, this study is based on a
disaggregated analysis at the industry level. A Generalized Leontief cost
function is utilized to estimate the impact of public capital on nine
manufacturing industries in Japan. The results indicate that public
capital offers no insignificant contribution to the productive performance
of these manufacturing industries except for Paper, Textiles and
Transport. The paper also suggests that the bubble economy in the 1980s is
the contributing factor behind this insignificant effect of public
capital.
Journal: Applied Economics
Pages: 1515-1520
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418925
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418925
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1515-1520
Template-Type: ReDIF-Article 1.0
Author-Name: Willie Belton
Author-X-Name-First: Willie
Author-X-Name-Last: Belton
Author-Name: Richard Cebula
Author-X-Name-First: Richard
Author-X-Name-Last: Cebula
Title: Capacity utilization rates and unemployment rates: are they complements or substitutes in warning about future inflation?
Abstract:
This research examines capacity utilization as a measure of economic
slack in the US economy. Many macroeconomists have questioned the use of
capacity utilization as a measure of economics slack on several fronts.
The first issue revolves around the definition and accuracy of measurement
of the capacity utilization rate in the US economy. Since this research
uses existing Federal Reserve measures of capacity utilization, no
insights into the definition and measurement issues are offered other than
the fact that a consistent role was found for two different Fed measures
of capacity utilization in explaining inflation. The second issue
effectively involves the concern as to robustness of the link between the
capacity utilization rate and inflation. There is indeed reason for the
Federal Reserve to take note of changes in capacity utilization when
trying to determine its policy position with regard to inflation. Clearly,
the high capacity measure developed in this research offers distinct
information about the inflation process. The third issue raises the
question as to whether the capacity utilization and unemployment rates are
complements or substitutes in the inflation equation. Both rates tend to
provide similar information regarding price changes at low levels of
aggregate resource usage. However, as resource usage in the economy
becomes increasingly close to its maximum potential, the labour market
impact on inflation, as capture by unemployment rate measures, is
distinctly different from that of capacity constraints. Finally, if the
capacity utilization rate is indeed a useful measure of inflationary
pressure, is there a threshold level of the capacity utilization rate
above which policymakers should become particularly concerned about the
potential of accelerating inflation? Across two measures of inflation, the
widely discussed capacity threshold level is in the 84-85% range.
Journal: Applied Economics
Pages: 1521-1532
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418934
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418934
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1521-1532
Template-Type: ReDIF-Article 1.0
Author-Name: Mickael Lothgren
Author-X-Name-First: Mickael
Author-X-Name-Last: Lothgren
Title: Specification and estimation of stochastic multiple-output production and technical inefficiency
Abstract:
This paper presents a primal-based approach for specification and
estimation of multiple-output production frontiers that allows
simultaneous identification and estimation of determinants of technical
inefficiency. The proposed model extends the technical efficiency effects
model by Battese and Coelli (1995) to general multiple-output
technologies. An empirical application using Swedish health care panel
data from the years 1989-1994 is included. The key issue is to test for
the effects on technical efficiency of an organizational reform
implemented with the primary purpose to increase efficiency. The results
reveal no significant effect on technical efficiency of the reform, but
evidence of overall decreased technical efficiency and technical progress
in the provision of health care over the studied time period are found.
Journal: Applied Economics
Pages: 1533-1540
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418943
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418943
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1533-1540
Template-Type: ReDIF-Article 1.0
Author-Name: Michele McLennan
Author-X-Name-First: Michele
Author-X-Name-Last: McLennan
Title: Does household labour impact market wages?
Abstract:
This study investigates the hypothesis that women's greater home
responsibilities contribute directly to their lower wages because
household labour time reduces their market effort. OLS regressions show a
significant negative effect of household labour hours on market wages for
white married women, but not for other groups of women (single, black) or
men. Regressions correcting for endogeneity of household hours in the wage
equation or heterogeneity among women indicate there is no significant
effect of household labour hours on wages for any demographic group. These
results suggest that the evidence in support of the hypothesis is not
compelling.
Journal: Applied Economics
Pages: 1541-1557
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418952
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418952
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1541-1557
Template-Type: ReDIF-Article 1.0
Author-Name: Sarmistha Pal
Author-X-Name-First: Sarmistha
Author-X-Name-Last: Pal
Author-Name: Jocelyn Kynch
Author-X-Name-First: Jocelyn
Author-X-Name-Last: Kynch
Title: Determinants of occupational change and mobility in rural India
Abstract:
With a view to redress the dearth of economic analysis on occupational
dynamics in rural household economies, this study examines the nature and
characteristics of occupational change and mobility in rural India. Using
the unique WIDER data-set from six villages in West Bengal, India the
factors causing a change of primary occupation among those who tried to
change occupation over a twelve-month recall period has been analysed.
Bivariate probit estimates jointly determining the probability of trying
to change occupation and having been successful suggest that success in
changing occupation depends crucially on socially constructed 'status'-
being older, male, from larger farming families or having higher schooling
experience. They also exemplify the effects of regional diversity, levels
of prosperity and different patterns of employment between agricultural
and non-agricultural activities.
Journal: Applied Economics
Pages: 1559-1573
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418961
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418961
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1559-1573
Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Maniadakis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Maniadakis
Author-Name: Emmanuel Thanassoulis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Thanassoulis
Title: Assessing productivity changes in UK hospitals reflecting technology and input prices
Abstract:
In this study Malmquist productivity indexes are used to evaluate the
performance of acute hospitals in the UK over the period after the
introduction of the internal market in the National Health Service in
1991. The indexes are computed using nonparametric programming, known as
Data Envelopment Analysis, and they are decomposed into multiple component
measures to give insights into the trends in hospital performance. Overall
it is found that productivity regressed in the year after the reforms but
progressed thereafter so that overall there was a net progress both as far
as the inputs and costs are concerned. Productivity progress is mainly due
to overall efficiency progress, which in turn is mostly attributed to
allocative efficiency improvements. Technical change resulted in a small
reduction in the amount of inputs used but also at higher production
costs, because of a worsening in the match between input mixes and
relative input prices. However, it is suggested that the gains in
productivity are not high enough to argue that the internal market has had
a significant impact on productivity. Finally, it is argued that the
methodologies employed here can be a valuable evaluative and managerial
tool in the context of the new NHS reforms about to be introduced.
Journal: Applied Economics
Pages: 1575-1589
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418970
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418970
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1575-1589
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Brown
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Brown
Author-Name: Dennis Glennon
Author-X-Name-First: Dennis
Author-X-Name-Last: Glennon
Title: Cost structures of banks grouped by strategic conduct
Abstract:
The hypothesis that the banking system consists of firms that use the
same production technology is tested and rejected in this study. Six
groupings of the population of commercial banks are identified using
cluster analysis. The banks are grouped to reflect similar production
technologies within groups but different technologies across groups as
defined by the strategic conduct (i.e., activities) of the banks. The
results suggest that banks in different clusters employ production
processes that feature different degrees of substitutability between
factors of production, and that the estimates of input substitutability
for those groups look quite different from those estimated based on the
full population of commercial banks. The impact of the homogeneity
production technology assumption on the measurement of cost efficiency is
also assessed. The results show that partitioning the industry by
strategic conduct reduces the average inefficiency in the industry. These
results support those found by others who used similar partitioning
criteria but a more narrowly defined sample of banks.
Journal: Applied Economics
Pages: 1591-1605
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418989
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418989
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1591-1605
Template-Type: ReDIF-Article 1.0
Author-Name: A. M. Gazely
Author-X-Name-First: A. M.
Author-X-Name-Last: Gazely
Author-Name: J. M. Binner
Author-X-Name-First: J. M.
Author-X-Name-Last: Binner
Title: The application of neural networks to the Divisia index debate: evidence from three countries
Abstract:
If monetary policy is to be effective in controlling the macroeconomy,
accurate measurement of the money supply is essential. The conventional
way of measuring the level of the money supply is to simply sum the
constituent liquid liabilities of banks. However, a more sophisticated,
weighted monetary index has been proposed to take account of the varying
degrees of liquidity of the short-term instruments included in money.
Inferences about the effects of money on economic activity may depend
importantly on the choice of monetary index because simple sum aggregates
cannot internalize pure substitution effects. This hypothesis is
investigated in the current paper. A Divisia index measure of money is
constructed for the USA, UK and Italian economies and its inflation
forecasting potential is compared with that of its simple sum counterpart
in each of the three countries. The powerful Artificial Intelligence
technique of neural networks is used to allow a completely flexible
mapping of the variables and a greater variety of functional form than is
currently achievable using conventional econometric techniques. The
application of neural network methodology to examine the money-inflation
link is highly experimental in nature and, hence, the overriding feature
of this research is one of simplicity. Superior inflation forecasting
models are achieved when a Divisia M2 measure of money is used in the
majority of cases. This support for Divisia is entirely consistent with
findings based on standard econometric techniques reported from the
respective central and Federal Reserve banks of each country. Divisia
monetary aggregates appear to offer advantages over their simple sum
counterparts as macroeconomic indicators. Further, the combination of
Divisia measures of money with the artificial neural network offers a
promising starting point for improved models of inflation.
Journal: Applied Economics
Pages: 1607-1615
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400418998
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400418998
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1607-1615
Template-Type: ReDIF-Article 1.0
Author-Name: Abul Masih
Author-X-Name-First: Abul
Author-X-Name-Last: Masih
Author-Name: Rumi Masih
Author-X-Name-First: Rumi
Author-X-Name-Last: Masih
Title: The dynamics of fertility, family planning and female education in a developing economy
Abstract:
Unlike most empirical works on fertility analysis, this study is the
first attempt to analyse the dynamics of fertility and its determinants
with a particular focus on the role played by female education and family
planning programmes in the context of a traditional society. The analysis
is based on the application of the following dynamic time-series
techniques in a multivariate context: cointegration, vector
error-correction modelling and variance decompositions. These 'dynamic'
tools are recently developed and hitherto untried in fertility analysis in
the context of a poor developing economy, such as India. The results based
on the above most recently developed methodology, broadly indicate that in
the complex dynamic interactions, the importance of conventional
'structural' hypothesis as a 'Granger-causal' factor in bringing fertility
down in the longer term cannot be denied. However, overall, in the short
to long term, the findings appear to be more consistent with the recent
'ideational' hypothesis (emphasizing the critical role played by the two
policy variables in the analysis- i.e. changes in the female secondary
enrolment ratios, and family planning programmes- to ensure 'initial'
fertility decline) than with the conventional 'structural' hypothesis
(emphasizing a significant socio-economic structural change as a
pre-condition for 'initial' fertility decline).
Journal: Applied Economics
Pages: 1617-1627
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400419005
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400419005
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1617-1627
Template-Type: ReDIF-Article 1.0
Author-Name: Yiu-Wah Ho
Author-X-Name-First: Yiu-Wah
Author-X-Name-Last: Ho
Author-Name: Roger Strange
Author-X-Name-First: Roger
Author-X-Name-Last: Strange
Author-Name: Jenifer Piesse
Author-X-Name-First: Jenifer
Author-X-Name-Last: Piesse
Title: CAPM anomalies and the pricing of equity: evidence from the Hong Kong market
Abstract:
Using a sample of equity stocks traded on the Hong Kong stock market,
this study examines empirically the independent and joint roles of the
more commonly hypothesized variables in explaining cross-sectional
variation in average returns over the period from January 1980 to December
1994. Evidence indicates that beta, book leverage, earnings-price ratio
and dividend yield are not priced, whereas significant book-to-market
equity, market leverage (absorbed by book-to-market equity), size, and
share price effects are observed. The findings should prove valuable in
portfolio management and corporate financial decisions.
Journal: Applied Economics
Pages: 1629-1636
Issue: 12
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400419014
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400419014
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Handle: RePEc:taf:applec:v:32:y:2000:i:12:p:1629-1636
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Clarke
Author-X-Name-First: Philip
Author-X-Name-Last: Clarke
Title: Valuing the benefits of mobile mammographic screening units using the contingent valuation method
Abstract:
The benefits of improving access to mammographic screening are estimated
using a contingent valuation experiment conducted on 458 women in 19 rural
Australian towns. The contingent valuation survey provides women with
information on mammographic screening and uses a closed-ended format to
elicit their willingness to pay for a visit of a mobile mammographic
screening unit. Single and double-bounded versions of the discrete
response contingent valuation method are employed in the estimation of
willingness to pay. The double-bounded contingent valuation approach is
shown to be biased due to respondents having a greater disposition to
respond 'no' when the bid amount in the follow-up question is higher than
the bid amount offered in the initial question. Several approaches to
dealing with this bias are examined.
Journal: Applied Economics
Pages: 1647-1655
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400420995
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400420995
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1647-1655
Template-Type: ReDIF-Article 1.0
Author-Name: Tilak Abeysinghe
Author-X-Name-First: Tilak
Author-X-Name-Last: Abeysinghe
Title: Electronics and growth cycles in Singapore
Abstract:
With the help of spectral and structural time series analyses it is found
that the demand for electronics in the USA goes through a cycle with a
period of about four to five years. Because of the synchronized nature of
the electronics market, the global demand for electronics is likely to
follow a similar cycle. The electronics cycle is unlikely to be caused by
a regular business cycle. The major cause of the electronics cycle appears
to be a product cycle which results from the introduction of new products
to the market. As a result countries like Singapore which depend heavily
on electronics exports may face roller coaster rides, especially in their
manufacturing growth. Product diversification is the best solution to the
problem.
Journal: Applied Economics
Pages: 1657-1663
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421002
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1657-1663
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Wadud
Author-X-Name-First: Abdul
Author-X-Name-Last: Wadud
Author-Name: Ben White
Author-X-Name-First: Ben
Author-X-Name-Last: White
Title: Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods
Abstract:
This study compares estimates of technical efficiency obtained from the
stochastic frontier approach and the Data Envelopment Analysis (DEA)
approach using farm-level survey data for rice farmers in Bangladesh.
Technical inefficiency effects are modelled as a function of farm-specific
socioeconomic factors, environmental factors and irrigation
infrastructure. The results from both the approaches indicate that
efficiency is significantly influenced by the factors measuring
environmental degradation and irrigation infrastructure.
Journal: Applied Economics
Pages: 1665-1673
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421011
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421011
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1665-1673
Template-Type: ReDIF-Article 1.0
Author-Name: P. J. A. Robson
Author-X-Name-First: P. J. A.
Author-X-Name-Last: Robson
Author-Name: R. J. Bennett
Author-X-Name-First: R. J.
Author-X-Name-Last: Bennett
Title: The use and impact of business advice by SMEs in Britain: an empirical assessment using logit and ordered logit models
Abstract:
This study assesses the effect of differences in types of client on the
use and impact of business advice by SMEs in Britain using new survey
evidence from the Cambridge ESRC Centre for Business Research Survey of
1997. The survey, covering over 2500 respondents, is the largest and most
definitive assessment available in Britain. Moreover, the survey allows an
assessment of the full range of providers of external advice, the private
sector, business associations and various public sector bodies, as well as
the fields of advice. Using multivariate logit models it is found that
size of firm, rate of growth and innovation appear to be the main
variables influencing the likelihood of firms seeking external advice,
both from different sources and from different fields. Other variables
which are investigated include, age, profitability, skill levels,
manufacturer/services, and exporter/nonexporter. Ordered logit models of
the impact of the advice demonstrate that there are significant
differences between clients' perceived impact of advice and the sources of
advice they use, chiefly as a result of firm size, and to a lesser extent
for growth, innovation and export levels.
Journal: Applied Economics
Pages: 1675-1688
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421020
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1675-1688
Template-Type: ReDIF-Article 1.0
Author-Name: Tanweer Akram
Author-X-Name-First: Tanweer
Author-X-Name-Last: Akram
Title: Publicly subsidized privatization: a simple model of dysfunctional privatization
Abstract:
This paper points out the limitations of the privatization programme in
Bangladesh, with particular reference to the debt-default status of
privatized firms. First, detailed analysis of the debt-default status of
privatized firms is presented using data obtained from the central bank.
Secondly, a simple model of dysfunctional privatization is constructed to
show that perverse outcomes of privatization are possible. The experience
of developing economies, such as Bangladesh, lends credence to the results
of this model. Finally, various types of privatization are classified
following Bhagwati's (1982) typology of directly unproductive
profit-seeking activities.
Journal: Applied Economics
Pages: 1689-1699
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421039
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1689-1699
Template-Type: ReDIF-Article 1.0
Author-Name: Jai Mah
Author-X-Name-First: Jai
Author-X-Name-Last: Mah
Title: Antidumping decisions and macroeconomic variables in the USA
Abstract:
This paper investigates the macroeconomic factors that explain
antidumping decisions in the US International Trade Commission. Johansen's
cointegration test results show that there is a long run equilibrium
relationship between growth of the percentage of affirmative antidumping
decisions and trade balance. The error correction model shows that there
is a causality running from the latter to the former. Growth of the
percentage of affirmative antidumping decisions is revealed to cause
slowdown in economic growth. Partisan characteristics are observed in the
Commissioners' antidumping decisions.
Journal: Applied Economics
Pages: 1701-1709
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421048
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421048
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1701-1709
Template-Type: ReDIF-Article 1.0
Author-Name: Harvey Cutler
Author-X-Name-First: Harvey
Author-X-Name-Last: Cutler
Author-Name: Stephen Davies
Author-X-Name-First: Stephen
Author-X-Name-Last: Davies
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Title: Forecasting in a large macroeconomic system
Abstract:
This paper examines the efficiency gains yielded from estimating multiple
equation cointegrated systems as compared to their single equation
counterparts. In particular, this paper is concerned with the ability of
utilizing the cointegrating information to improve forecasting
performance. Recently an inability to improve forecasts of real income
once money demand error correction terms were introduced has been used to
argue that the M2 relationship had broken down during the early 1990s.
However, the results suggest that once the underlying responses of
variables are more closely investigated, the behaviour of M2 has remained
stable.
Journal: Applied Economics
Pages: 1711-1718
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421057
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421057
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1711-1718
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Cummings
Author-X-Name-First: Ronald
Author-X-Name-Last: Cummings
Author-Name: Mary Beth Walker
Author-X-Name-First: Mary Beth
Author-X-Name-Last: Walker
Title: Measuring the effectiveness of voluntary emission reduction programmes
Abstract:
This paper examines the evaluation of state environmental policies aimed
at reducing ground level ozone in order to meet air quality standards set
by the US Environmental Protection Agency. Several states with
metropolitan areas that violate federal air quality regulations have
adopted voluntary emission reduction programmes. These programmes focus on
emissions from mobile sources, with the chief source being the automobile.
States are allowed to claim credit towards bringing their metro areas
closer to compliance with regulations only if they can provide credible
evidence that these voluntary programmes are successful in reducing
emissions. A model is developed to forecast aggregate traffic volumes so
that one can assess the impact of the programme in reducing traffic flows
during 'Ozone Action Days'. Background information on the difficulties of
measuring the ozone problem and on the recent policies adopted by the US
EPA is provided. Using data from the Atlanta, Georgia metropolitan area,
the accuracy of the model is demonstrated and preliminary analysis of
whether the programmes which began in the summer of 1998 has had the
desired impact is provided.
Journal: Applied Economics
Pages: 1719-1726
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421066
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421066
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1719-1726
Template-Type: ReDIF-Article 1.0
Author-Name: David Armstrong
Author-X-Name-First: David
Author-X-Name-Last: Armstrong
Author-Name: Duncan McVicar
Author-X-Name-First: Duncan
Author-X-Name-Last: McVicar
Title: Value added in further education and vocational training in Northern Ireland
Abstract:
At the age of 16, many young people in the UK decide to leave school and
enter vocational education or training, either at a Further Education (FE)
college, or on a Government training scheme. In spite of the size and
importance of this group, the current debate about education and training
standards has tended to focus more on how to improve schools, largely
neglecting the potential contribution to be made by the FE and vocational
training sectors. This study seeks to begin to redress this imbalance by
examining the extent to which those young people leaving school and
entering vocational education or training at 16 obtained further
qualifications up to the age of 18. In particular, there is an examination
of whether the choice between FE and Government training schemes at age 16
influences the subsequent success of young people in terms of gaining
additional qualifications. Adopting an ordered probit approach to
modelling qualifications levels, the results contradict the (somewhat
pessimistic) common perception of Government training schemes. In
particular, no significant differences per se are found between the value
added performance of FE colleges and Government training schemes.
Journal: Applied Economics
Pages: 1727-1736
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421075
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421075
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1727-1736
Template-Type: ReDIF-Article 1.0
Author-Name: David Peel
Author-X-Name-First: David
Author-X-Name-Last: Peel
Author-Name: David Law
Author-X-Name-First: David
Author-X-Name-Last: Law
Author-Name: Michael Cain
Author-X-Name-First: Michael
Author-X-Name-Last: Cain
Title: Product bundling and a rule of thumb versus the Harville formulae: can each way bets with UK bookmakers generate abnormal returns
Abstract:
Bookmakers practise a type of product bundling. To bet a horse for a
place a punter has to bet an equal amount for a win. The returns to the
place component of the bet are determined by a rule of thumb. This paper
examines whether the product bundling negates a betting strategy that
endeavours to exploit any inefficiency in pricing of the place component
of each way bets based on the Harville formulae. In order to implement the
Harville formulae Shin probabilities are employed, which correct for the
favourite longshot bias in starting price odds, as measures of win
probabilities. The analysis suggests that small positive expected returns
to each way bets appear to exist.
Journal: Applied Economics
Pages: 1737-1744
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421084
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421084
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1737-1744
Template-Type: ReDIF-Article 1.0
Author-Name: David Karemera
Author-X-Name-First: David
Author-X-Name-Last: Karemera
Author-Name: Victor Iwuagwu Oguledo
Author-X-Name-First: Victor Iwuagwu
Author-X-Name-Last: Oguledo
Author-Name: Bobby Davis
Author-X-Name-First: Bobby
Author-X-Name-Last: Davis
Title: A gravity model analysis of international migration to North America
Abstract:
This study examines the influence of political, economic and demographic
factors on the size and composition of migration flows to North America. A
modified gravity model is specified and adjusted to include immigration
regulations and characteristics specific to the origin and destination
countries. For empirical test of the model, the time period of study is
from 1976-1986, and 70 countries are covered for a total of 1540
observations of migration flows to Canada and the USA. The results reveal
that the population of origin countries and the income of destination
countries are two major determinants of migration to North America. High
population areas of Asia and Latin America provided a large share of the
immigrants. Domestic restrictions on political and civil freedom in origin
countries are found to significantly impair migration to North America.
Journal: Applied Economics
Pages: 1745-1755
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421093
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1745-1755
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marc Falter
Author-X-Name-First: Jean-Marc
Author-X-Name-Last: Falter
Author-Name: Christophe Perignon
Author-X-Name-First: Christophe
Author-X-Name-Last: Perignon
Title: Demand for football and intramatch winning probability: an essay on the glorious uncertainty of sports
Abstract:
The aims of this study are (i) to identify the main determinants of the
demand for French Premiere Division football matches using all matches
played during the 1997/1998 season, (ii) to estimate a team-specific
probability of success, and (iii) to propose an updating process for the
intramatch winning probability. The methodology is tested empirically over
an out-of-sample data set using matches of the 1998/1999 season. The
results show that football appears to be an inferior product affected by
both socio-economic and football variables, and that the main football
variables have only a tenuous explanatory power concerning the final
outcome of a given match.
Journal: Applied Economics
Pages: 1757-1765
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400421101
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1757-1765
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Brown
Author-X-Name-First: Sarah
Author-X-Name-Last: Brown
Author-Name: John Sessions
Author-X-Name-First: John
Author-X-Name-Last: Sessions
Title: Employee militancy in Britain: 1985-1990
Abstract:
This paper profiles individual strike incidence and militancy in Britain
over the period 1985-1990 using data derived from the British Social
Attitudes Survey. The approach of the study is to quantify the
differential probabilities of strike activity and other forms of militant
behaviour of particular groups within the population. Following studies
from the USA in highlighting, in particular, the role of demographic and
attitudinal influences. The results indicate that demographic influences
are, in general, the key correlates of strike incidence and militancy
ceteris paribus.
Journal: Applied Economics
Pages: 1767-1774
Issue: 13
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400421110
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Handle: RePEc:taf:applec:v:32:y:2000:i:13:p:1767-1774
Template-Type: ReDIF-Article 1.0
Author-Name: Wayne Simpson
Author-X-Name-First: Wayne
Author-X-Name-Last: Simpson
Title: Intermittent work activity and earnings
Abstract:
Patterns of intermittent work activity appear to be more common in the
modern labour market, at least for younger workers. This study extends
earlier models of the relationship between labour market intermittency and
earnings to include both part time work and nonparticipation, to
differentiate between past work experience and current job tenure, to
allow for nonlinear experience effects, and to account for selection bias
arising from the exclusion of nonworkers. The results suggest that the
effects of part time work and nonparticipation on earnings are similar.
Moreover, some common patterns emerge: the effects are larger for women,
greater for young workers, and greater when intermittency replaces current
job tenure.
Journal: Applied Economics
Pages: 1777-1786
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400424991
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400424991
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1777-1786
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Panik
Author-X-Name-First: Michael
Author-X-Name-Last: Panik
Title: Estimating global returns to scale with a cone-homogeneous production function: some cross-section results
Abstract:
This paper employs a cone-homogeneous production function to approximate,
as closely as desired, a ray-homogeneous production function. Points in
input space are projected by an output scaling function on to a fixed ray
and a Cobb-Douglas cone function is used to obtain an estimate of global
returns to scale. The empirical results indicate that we get a good
approximation to a ray-homogeneous production function from the estimated
cone-homogeneous function.
Journal: Applied Economics
Pages: 1787-1791
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425008
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1787-1791
Template-Type: ReDIF-Article 1.0
Author-Name: Amparo Sanchis
Author-X-Name-First: Amparo
Author-X-Name-Last: Sanchis
Title: Does privatization remove restrictive working practices? Evidence from UK establishments
Abstract:
This study investigates the links between privatization and changes in
working practices using data from the UK 1990 Workplace Employees
Relations Survey. Privatization raises the probability of an establishment
of experiencing reduced job demarcation and/or increased flexibility in
the use of the workforce by managers. After exploration no clear
association is found between ownership and the level of restrictive
working practices.
Journal: Applied Economics
Pages: 1793-1800
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425017
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425017
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1793-1800
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Brown
Author-X-Name-First: Kenneth
Author-X-Name-Last: Brown
Title: Hedonic price indexes and the distribution of buyers across the product space: an application to mainframe computers
Abstract:
Journal: Applied Economics
Pages: 1801-1808
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425026
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1801-1808
Template-Type: ReDIF-Article 1.0
Author-Name: Holger Gorg
Author-X-Name-First: Holger
Author-X-Name-Last: Gorg
Title: Multinational companies and indirect employment: measurement and evidence
Abstract:
This study suggests a new approach towards measuring the indirect
employment effects of multinational companies (MNCs) using a simple
Cobb-Douglas production function. Based on the assumption that domestic
sales by indigenous firms in a sector are supplies for multinationals in
that sector rather than final goods, indirect employment effects are
measured as the effect of an increase in domestically purchased inputs on
employment in indigenously-owned suppliers. Applying this measure to data
for the electronics sector in Ireland we find that there have been
positive indirect effects of MNCs on employment in indigenous firms. The
value of the estimated coefficients depends somewhat on the specification
of the model estimated but the standard specification suggests that a 10%
increase in domestically sold output by indigenous firms leads to an
employment growth of around 2% in these firms.
Journal: Applied Economics
Pages: 1809-1818
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425035
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425035
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1809-1818
Template-Type: ReDIF-Article 1.0
Author-Name: Dhaneshwar Ghura
Author-X-Name-First: Dhaneshwar
Author-X-Name-Last: Ghura
Author-Name: Barry Goodwin
Author-X-Name-First: Barry
Author-X-Name-Last: Goodwin
Title: Determinants of private investment: a cross-regional empirical investigation
Abstract:
This study investigates the determinants of private investment in Asia,
Sub-Saharan Africa (SSA), and Latin America with panel data for the period
1975-1992. Econometric tests indicated a preference for the random effects
estimation procedure over other alternatives. The results, with pooled
data for all the 31 countries in the sample, confirm some results found
elsewhere in the empirical literature. Namely, private investment in
developing countries is stimulated by real GDP growth, increases in
government investment, improvements in financial intermediation,
reductions in credit to the government, and declines in world interest
rates. Another interesting result relates to the important role played by
educational development in stimulating private investment. Nevertheless,
statistically significant adverse effects of external debt on private
investment found by other studies could not be confirmed by this study. In
addition, the results for the full sample of countries are by no means
common across the regions. While real GDP growth stimulated private
investment in Asia and Latin America, its effect was not significant in
SSA. Also, while government investment stimulated private investment in
SSA, it had the opposite effect in Asia and Latin America. In addition,
private investment was stimulated by increases in private sector credit in
Asia and SSA, but not in Latin America. Also, increases in credit to the
government had significant adverse effects on private investment in SSA
and Latin America. Further, the adverse effects of external shocks were
statistically significant only in SSA, a result that confirms the view
that the region is vulnerable to these shocks.
Journal: Applied Economics
Pages: 1819-1829
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425044
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1819-1829
Template-Type: ReDIF-Article 1.0
Author-Name: Padma Rao Sahib
Author-X-Name-First: Padma Rao
Author-X-Name-Last: Sahib
Title: The information content of wage and duration data in a search model
Abstract:
Estimates of the parameters of the wage offer density and the offer
arrival process of a simple search model are presented in this paper. The
optimality constraint from the search model is treated as a restriction
and its effect on parameter estimates is analysed. Estimates from wage
data alone and estimates from duration data alone can be interpreted as
unrestricted estimates while estimates obtained from wage and duration
data together can be interpreted as restricted estimates. This
interpretation allows a test of the optimality constraint which is
rejected by the data used. Estimates reveal a substantial difference in
the information contained in wages and the information contained in
durations, but benefit elasticities are consistent with findings from
previous studies.
Journal: Applied Economics
Pages: 1831-1839
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425053
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425053
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1831-1839
Template-Type: ReDIF-Article 1.0
Author-Name: Tsu-Tan Fu
Author-X-Name-First: Tsu-Tan
Author-X-Name-Last: Fu
Author-Name: Lung-An Li
Author-X-Name-First: Lung-An
Author-X-Name-Last: Li
Author-Name: Yih-Ming Lin
Author-X-Name-First: Yih-Ming
Author-X-Name-Last: Lin
Author-Name: Kamhon Kan
Author-X-Name-First: Kamhon
Author-X-Name-Last: Kan
Title: A limited information estimator for the multivariate ordinal probit model
Abstract:
A limited information estimator for the multivariate ordinal probit model
is developed. The main advantage of the estimator is that even for high
dimensional models, the estimation procedure requires the evaluation of
bivariate normal integrals only. The proposed estimator also avoids the
potential problem of encountering local maxima in the estimation process,
which is looming using maximum likelihood. The performance of the limited
information estimator is shown by Monte Carlo experiments to be excellent
and it is comparable to that of the maximum likelihood estimator. Finally,
an application of the limited information multivariate ordinal probit to
model the consumption level of cigarette, alcohol and betel nut is
presented.
Journal: Applied Economics
Pages: 1841-1851
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425062
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425062
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1841-1851
Template-Type: ReDIF-Article 1.0
Author-Name: Willie Belton
Author-X-Name-First: Willie
Author-X-Name-Last: Belton
Author-Name: Richard Cebula
Author-X-Name-First: Richard
Author-X-Name-Last: Cebula
Title: Capacity utilization rates and unemployment rates: are they complements or substitutes in warning about future inflation?
Abstract:
This research examines capacity utilization as a measure of economic
slack in the US economy. Many macroeconomists have questioned the use of
capacity utilization as a measure of economics slack on several fronts.
The first issue revolves around the definition and accuracy of measurement
of the capacity utilization rate in the US economy. Since this research
use existing Federal Reserve measures of capacity utilization no insights
into the definition and measurement issues are offered other than the fact
that a consistent role is found for two different Fed measures of capacity
utilization in explaining inflation. The second issue effectively involves
the concern as to robustness of the link between the capacity utilization
rate and inflation. It was found that there is indeed reason for the
Federal Reserve to take note of changes in capacity utilization when
trying to determine its policy position with regard to inflation. Clearly,
the high capacity measure developed in this research offers distinct
information about the inflation process. The third issue raises the
question as to whether the capacity utilization and unemployment rates are
complements or substitutes in the inflation equation. Both rates tend to
provide similar information regarding price changes at low levels of
aggregate resource usage. However, as resource usage in the economy
becomes increasingly close to its maximum potential, the labour market
impact on inflation, as capture by unemployment rate measures, is
distinctly different from that of capacity constraints. Finally, if the
capacity utilization rate is indeed a useful measure of inflationary
pressure, is there a threshold level of the capacity utilization rate
above which policymakers should become particularly concerned about the
potential of accelerating inflation? It was found that across two measures
of inflation, the widely discussed capacity threshold level is in the
84-85% range.
Journal: Applied Economics
Pages: 1853-1864
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425071
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425071
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1853-1864
Template-Type: ReDIF-Article 1.0
Author-Name: Svenn-Age Dahl
Author-X-Name-First: Svenn-Age
Author-X-Name-Last: Dahl
Author-Name: Oivind Anti Nilsen
Author-X-Name-First: Oivind Anti
Author-X-Name-Last: Nilsen
Author-Name: Kjell Vaage
Author-X-Name-First: Kjell
Author-X-Name-Last: Vaage
Title: Work or retirement? Exit routes for Norwegian elderly
Abstract:
This study analyses early retirement pathways for Norwegian male and
female workers, applying a multinomial logit model to a data set covering
more than 10500 employees, ages 56-61, in 1989. The aim is to analyse the
transition to different destinations, i.e. disability pension,
unemployment benefits, and out of the labour force, in the period
1989-1995. Both family characteristics, expected income in different
end-states, and push factors, such as industry attachment and local
unemployment, are important for the early retirement process. Findings
also indicate that there are several gender differences. The explanatory
variables have different effects on the different exit routes for males as
well as for females. The hypothesis that disability and unemployment are
exchangeable pathways into early retirement is rejected.
Journal: Applied Economics
Pages: 1865-1876
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425080
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425080
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1865-1876
Template-Type: ReDIF-Article 1.0
Author-Name: J. C. H. Jones
Author-X-Name-First: J. C. H.
Author-X-Name-Last: Jones
Author-Name: J. A. Schofield
Author-X-Name-First: J. A.
Author-X-Name-Last: Schofield
Author-Name: D. E. A. Giles
Author-X-Name-First: D. E. A.
Author-X-Name-Last: Giles
Title: Our fans in the north: the demand for British Rugby League
Abstract:
This paper reports the results of estimating a single equation model of
an attendance function for British Rugby League over the seasons 1982/83
to 1990/91. The data are panel data covering virtually every team which
played in the two division league over the nine year time period.
Diagnostic tests indicate that the appropriate model is a semilog random
effects model, where the dependent variable is league attendance weighted
by population. The major results are as follows: there are significant
positive relationships between league attendance and various measures of
team success (although the direction of causality is moot), team quality
(as proxied by the two divisions) and the economic quality of team
location (as proxied by the unemployment rate); but there is no
discernible relationship between league attendance and either success in
nonleague trophy competitions or measures of exceptional player quality.
Journal: Applied Economics
Pages: 1877-1887
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425099
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425099
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1877-1887
Template-Type: ReDIF-Article 1.0
Author-Name: Rand Ressler
Author-X-Name-First: Rand
Author-X-Name-Last: Ressler
Author-Name: Melissa Waters
Author-X-Name-First: Melissa
Author-X-Name-Last: Waters
Title: Female earnings and the divorce rate: a simultaneous equations model
Abstract:
Economists have contributed a great deal of research, both theoretical
and empirical, to the study of marital formation and dissolution. Many
empirical examinations of marriage and divorce rates exist based on
Becker's seminal contributions to the literature. All of these divorce
studies are single equation models, with female earnings assumed
exogenous. As discussed by Becker (1981), however, causality may run in
the opposite direction as well: the divorce rate may influence female
earnings. This paper estimates a simultaneous equations model in which
divorce rates and female earnings are the jointly endogenous variables.
Data are by state, for 1960, 1970, 1980 and 1990. The state-wide divorce
rate equation is an extension of Waters and Ressler (1999), and the
specification of a state-wide earnings equation follows standard human
capital theory. The specification of joint endogeneity between female
earnings and the divorce rate allows valid inferences to be made regarding
the effect of female earnings on divorce for the first time. Most previous
single equation studies of divorce have found that increases in female
earnings significantly increase divorce rates. A simultaneous equations
model will allow inferences to be made regarding the possibility of joint
determination, which may cause a reevaluation of previous results.
Journal: Applied Economics
Pages: 1889-1898
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425107
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425107
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1889-1898
Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Cannari
Author-X-Name-First: Luigi
Author-X-Name-Last: Cannari
Author-Name: Francesco Nucci
Author-X-Name-First: Francesco
Author-X-Name-Last: Nucci
Author-Name: Paolo Sestito
Author-X-Name-First: Paolo
Author-X-Name-Last: Sestito
Title: Geographic labour mobility and the cost of housing: evidence from Italy
Abstract:
In recent years, internal migration in Italy has declined markedly,
notwithstanding the widening of the North-South gap in terms of
unemployment rates and real income. Here, the extent to which the housing
market has contributed to the decline is examined. Preliminary to this
analysis, differentials in the cost of housing between the macro-areas of
the country are estimated using data on the market price of houses located
in 96 provincial capitals. Econometric evidence is provided supporting the
view that the North-South housing price differential is a notable factor
in explaining the falling pattern of mobility. The positive impact on
migration from the South to the North of a wider gap in the two areas in
terms of income and employment prospects has been offset by the housing
price differential, which has steadily risen at least from the mid-1980s
onwards. Yet, a considerable share of the decrease in mobility remains
unexplained, possibly owing to the heterogeneity in the composition of
migration flows across different cohorts.
Journal: Applied Economics
Pages: 1899-1906
Issue: 14
Volume: 32
Year: 2000
X-DOI: 10.1080/000368400425116
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400425116
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Handle: RePEc:taf:applec:v:32:y:2000:i:14:p:1899-1906
Template-Type: ReDIF-Article 1.0
Author-Name: John Cranfield
Author-X-Name-First: John
Author-X-Name-Last: Cranfield
Author-Name: Paul Preckel
Author-X-Name-First: Paul
Author-X-Name-Last: Preckel
Author-Name: James Eales
Author-X-Name-First: James
Author-X-Name-Last: Eales
Author-Name: Thomas Hertel
Author-X-Name-First: Thomas
Author-X-Name-Last: Hertel
Title: On the estimation of 'an implicitly additive demand system'
Abstract:
Motivated by a lack of Engel flexibility in commonly used demand systems,
Rimmer and Powell developed a new demand system. This system, referred to
AIDADS, is implicitly, directly additive, possesses marginal budget shares
and thus Engel elasticities, that vary nonlinearly with expenditure such
that predicted budget shares are restricted to the [0,1] interval. Due to
these attractive Engel properties, AIDADS represents a significant
contribution to the literature on demand analysis. This paper presents an
alternative estimation procedure to the one used by Rimmer and Powell and
examines its properties via a case study. The proposed approach avoids a
linear approximation employed in Rimmer and Powell's estimation framework.
Based on a small Monte Carlo study, it appears that the approach produces
more accurate estimates of the parameters and Engel elasticities.
Journal: Applied Economics
Pages: 1907-1915
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155832
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155832
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1907-1915
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Prieto-Rodriguez
Author-X-Name-First: Juan
Author-X-Name-Last: Prieto-Rodriguez
Author-Name: Cesar Rodriguez-Gutierrez
Author-X-Name-First: Cesar
Author-X-Name-Last: Rodriguez-Gutierrez
Title: The added worker effect in the Spanish case
Abstract:
This study estimates several equations of labour participation for
married women to check if the 'added worker hypothesis' is fulfilled in
the Spanish case. To test this hypothesis a subsample of married women are
used, obtained from the Survey of Structure, Conscience and Biography of
Class of the year 1991 (SCBC-91). The main outcome is that women's labour
participation in Spain is still conditioned by their husbands' labour
status. Specifically, women's labour participation is stimulated when
their husbands are unemployed.
Journal: Applied Economics
Pages: 1917-1925
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155841
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155841
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1917-1925
Template-Type: ReDIF-Article 1.0
Author-Name: Felix J. Lopez Iturriaga
Author-X-Name-First: Felix J. Lopez
Author-X-Name-Last: Iturriaga
Title: A panel data study on Spanish firms' inventory investment
Abstract:
This paper raises several questions about inventory investment of a
sample of 172 big nonfinancial Spanish companies. Inventory investment has
been usually explained by two alternative theories: the production
smoothing model and the (S,s) model. First, we provide a descriptive
analysis based on industry-level data to show some shortcomings of the
first model. Then, we test a flexible accelerator model using firm-level
data. The results seem to show that inventory investment, previous-period
inventories and sales are closely and significantly related. This
evidence, although not conclusive, rejects both the pure production
smoothing model and the (S,s) model. At the same time, our results confirm
the view of a target inventory level and the plausibility of the so-called
stock-adjustment model, so that the optimal inventory holding buffers
sales volatility.
Journal: Applied Economics
Pages: 1927-1937
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155850
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155850
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1927-1937
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Martinez-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Martinez-Zarzoso
Author-Name: Celestino Suarez-Burguet
Author-X-Name-First: Celestino
Author-X-Name-Last: Suarez-Burguet
Title: The determinants of trade performance: influence of R&D on export flows
Abstract:
A theoretical model is presented, in which supply side differences
between countries determine international trade flows. This model is
empirically tested at a sectoral level for a group of EU countries, within
a framework that focuses on changes through time and differences between
countries. The results show that the validity of the theoretical model is
limited at sectoral level. However, as expected, we find that the variable
representing technological differences is significant and correctly signed
for high-technology sectors. The evidence points to the existence of
different production functions across countries and to the importance of
supply side factors in determining the direction and the terms of trade.
Journal: Applied Economics
Pages: 1939-1946
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155869
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1939-1946
Template-Type: ReDIF-Article 1.0
Author-Name: Sandra Decker
Author-X-Name-First: Sandra
Author-X-Name-Last: Decker
Title: Medicaid, AFDC and family formation
Abstract:
This paper uses the fact that states joined the Medicaid programme at
different times between early 1966 and early 1970 to estimate the effect
of health insurance availability on childbearing and marital choice. Data
on women aged 15 to 45 during the 1964 to 1972 period from the March
Current Population Survey (CPS) is used to estimate Medicaid's effect on
the probability that a woman has recently given birth and is not married.
It is found that the introduction of Medicaid led to a small but
statistically significant increase in the probability that a woman is
single and has recently given birth. Specifically, the introduction of
Medicaid led to a 0.3 percentage point increase in the probability that a
woman is a single mother of young children. This is an approximately 10%
increase relative to the average fraction of single mothers in the sample
of about 3%. Although nonwhite women are on average more likely to be
single mothers than white women are, it is found that Medicaid did not
significantly contribute to the formation of nonwhite female-headed
families. In contrast, Medicaid led to an approximately 14% increase in
the probability that a white woman is a single mother.
Journal: Applied Economics
Pages: 1947-1956
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155878
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155878
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1947-1956
Template-Type: ReDIF-Article 1.0
Author-Name: Alison Preston
Author-X-Name-First: Alison
Author-X-Name-Last: Preston
Title: Market and spillover forces in wage award determination in Australia: 1986 to 1997
Abstract:
This paper examines the role of market and spillover forces in wage award
determination in Australia. The results show, consistent with other
similar studies, that wage awards are only weakly related to market
forces. In the period studied (1986 to 1997) spillover forces emerge as
the dominant determinant of award wage adjustments. The results thus
provide some empirical evidence for phenomenon such as wage rigidity.
Journal: Applied Economics
Pages: 1957-1965
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155887
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155887
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1957-1965
Template-Type: ReDIF-Article 1.0
Author-Name: Tim Coelli
Author-X-Name-First: Tim
Author-X-Name-Last: Coelli
Author-Name: Sergio Perelman
Author-X-Name-First: Sergio
Author-X-Name-Last: Perelman
Title: Technical efficiency of European railways: a distance function approach
Abstract:
This study has two principal objectives. The first objective is to
measure and compare the performance of European railways. The second
objective is to illustrate the usefulness of econometric distance
functions in the analysis of production in multioutput industries, where
behavioural assumptions such as cost minimization or profit maximization,
are unlikely to be applicable. Using annual data on 17 railways companies
during 1988-1993, multioutput distance functions are estimated using
corrected ordinary least squares (COLS). The resulting technical
efficiency estimates range from 0.980 for the Netherlands to 0.784 for
Italy, with a mean of 0.863. The distance function results are also
compared with those obtained from single-output production functions,
where aggregate output measures are formed using either total revenue or a
Tornqvist index. The results obtained indicate substantial differences in
parameter estimates and technical efficiency rankings, casting significant
doubt upon the reliability of these single-output models, particularly
when a total revenue measure is used to proxy aggregate output.
Journal: Applied Economics
Pages: 1967-1976
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155896
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155896
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1967-1976
Template-Type: ReDIF-Article 1.0
Author-Name: Jalal Siddiki
Author-X-Name-First: Jalal
Author-X-Name-Last: Siddiki
Title: Demand for money in Bangladesh: a cointegration analysis
Abstract:
The aim of this study is to estimate the demand for real broad (M2) money
in Bangladesh using the most recently developed autoregressive distributed
lag approach to cointegration analyses. The empirical results show that
there is a unique cointegrated and stable long-run relationship among real
per capita broad money demand, real per capita income, domestic interest
rates and unofficial exchange rate (UM) premiums which act as a surrogate
for foreign interest rates. With money as the dependent variable, the
results show that the income and interest elasticities are positive while
the UM premium elasticity is negative. These results suggest that
distortions in the financial and foreign exchange markets should be
reduced in order to increase financial saving or monetary accumulation.
Our results also reveal that the demand for money in Bangladesh is stable
despite the changes in financial and exchange rate policies between 1975
and 1995.
Journal: Applied Economics
Pages: 1977-1984
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155904
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155904
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1977-1984
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Burton
Author-X-Name-First: Michael
Author-X-Name-Last: Burton
Author-Name: Richard Dorsett
Author-X-Name-First: Richard
Author-X-Name-Last: Dorsett
Author-Name: Trevor Young
Author-X-Name-First: Trevor
Author-X-Name-Last: Young
Title: An investigation of the increasing prevalence of nonpurchase of meat by British households
Abstract:
The purpose of the analysis has been to investigate the determinants of
the household's decisions regarding the purchase of meat in Great Britain.
The approach, using a Box-Cox generalization of the 'double hurdle' model,
has depicted the household making two choices, namely whether or not to
purchase the product (the participation decision) and then, for those
households which do purchase, how much to buy (the expenditure decision).
The determinants considered are socioeconomic variables, such as the total
expenditure of the household, market prices, characteristics of the
householder (age, gender, education, type of employment) and
characteristics of the household (location, presence of children, etc.).
By conducting the analysis over several years of survey data (1975-1993)
it is possible to investigate whether the influence of these variables has
changed over time. The bulk of the empirical analysis has concerned single
adult households (with or without children).
Journal: Applied Economics
Pages: 1985-1991
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155913
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155913
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1985-1991
Template-Type: ReDIF-Article 1.0
Author-Name: Kerry Patterson
Author-X-Name-First: Kerry
Author-X-Name-Last: Patterson
Title: Finite sample bias of the least squares estimator in an AR(p) model: estimation, inference, simulation and examples
Abstract:
This paper shows that the first order bias of least squares estimators of
the coefficients of an AR(p) model is important for 'typical'
macroeconomic time series and proposes a simple to apply method of bias
reduction. Biases in individual coefficients often cumulate in the sum
with far-reaching consequences for the cumulative impulse response
function. This function, being nonlinear in the underlying coefficients,
is particularly sensitive to biases when, as is often the case, the shocks
are long-lived. Simulations and examples demonstrate some of the
magnitudes involved.
Journal: Applied Economics
Pages: 1993-2005
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155922
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155922
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1993-2005
Template-Type: ReDIF-Article 1.0
Author-Name: Renuka Mahadevan
Author-X-Name-First: Renuka
Author-X-Name-Last: Mahadevan
Title: How technically efficient are Singapore's manufacturing industries?
Abstract:
This study attempts to understand the technical efficiency performance
(i.e. how well resources and given technology are being used) in 28
manufacturing industries in Singapore from 1975-1994, using an improved
version of the stochastic frontier model. In addition, an analytical model
is used to investigate the causes of technical inefficiency in these
industries to help policy formulation. The efficiency performance of
foreign and local-dominated industries is also closely examined.
Journal: Applied Economics
Pages: 2007-2014
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155931
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155931
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:2007-2014
Template-Type: ReDIF-Article 1.0
Author-Name: Phil Shackley
Author-X-Name-First: Phil
Author-X-Name-Last: Shackley
Author-Name: Cam Donaldson
Author-X-Name-First: Cam
Author-X-Name-Last: Donaldson
Title: Willingness to pay for publicly-financed health care: how should we use the numbers?
Abstract:
This paper addresses the question of how willingness to pay (WTP) values
in health care evaluation can be used by policy makers. The way in which
WTP values are used depends on from whom values are elicited and whether
the good concerned is privately-financed or publicly-financed through
taxation. Thus, four possible uses of WTP values are identified. The focus
is on the two uses which arise in the publiclyfinanced situation.
'Conventional' use of WTP values, where the decision as to whether or not
to provide a service depends upon whether or not WTP values are greater
than total cost, applies only in the privately-financed, and not
publiclyfinanced situations. The situations with publicly-financed goods
are more complex. The use of WTP values for publicly-financed goods is
justified and illustrated.
Journal: Applied Economics
Pages: 2015-2021
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155940
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155940
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:2015-2021
Template-Type: ReDIF-Article 1.0
Author-Name: R. Keith Schwer
Author-X-Name-First: R. Keith
Author-X-Name-Last: Schwer
Author-Name: Rennae Daneshvary
Author-X-Name-First: Rennae
Author-X-Name-Last: Daneshvary
Title: Tipping participation and expenditures in beauty salons
Abstract:
Research on tipping has been limited to restaurants, tourism and taxis.
This study investigates the economic and demographic factors that
influence whether a person tips and the amount tipped for a haircut in a
beauty salon. Using a two-step model, it is found that both economic and
demographic factors influence tipping behaviour. A person is more likely
to tip if he/she has long hair, attends to grooming on a frequent basis,
has a lower income, and is male. Price, gender, age, and the use of
appointments are factors that influence the amount that one tips.
Journal: Applied Economics
Pages: 2023-2031
Issue: 15
Volume: 32
Year: 2000
X-DOI: 10.1080/00036840050155959
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050155959
File-Format: text/html
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Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:2023-2031
Template-Type: ReDIF-Article 1.0
Author-Name: Vania Sena
Author-X-Name-First: Vania
Author-X-Name-Last: Sena
Title: The Generalized Malmquist index and capacity utilization change: an application to the Italian manufacturing, 1989-1994
Abstract:
Several indices of plant capacity utilization based on the concept of
best practice frontier have been proposed in the literature (Fare et al.
1992; De Borger and Kerstens, 1998). This paper suggests an alternative
measure of capacity utilization change based on Generalized Malmquist
index, proposed by Grifell-Tatje' and Lovell in 1998. The advantage of
this specification is that it allows the measurement of productivity
growth ignoring the nature of scale economies. Afterwards, this index is
used to measure capacity change of a panel of Italian firms over the
period 1989-94 using Data Envelopment Analysis and then its abilities of
explaining the short-run movements of output are assessed.
Journal: Applied Economics
Pages: 1-9
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122173
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:1-9
Template-Type: ReDIF-Article 1.0
Author-Name: Satya Paul
Author-X-Name-First: Satya
Author-X-Name-Last: Paul
Author-Name: Ahmad Assadzadeh
Author-X-Name-First: Ahmad
Author-X-Name-Last: Assadzadeh
Title: Empirical earnings functions for Iran
Abstract:
Some recent studies have debated the appropriateness of semi-log earnings
function in approximating actual earnings profiles. This study contributes
further to this debate by estimating four specifications of earnings
function, namely, semi-log quadratic, semi-log cubic, quadratic and cubic
with cross section data for 4035 full-time urban male earners in Iran for
1993. The analysis shows that the semi-log quadratic earnings function
fits the actual empirical earnings profiles very poorly. The quadratic
earnings function provides a much better approximation to the actual
earnings. Measures of out-of-sample prediction errors also show the
superiority of quadratic function over others.
Journal: Applied Economics
Pages: 11-21
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122017
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122017
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:11-21
Template-Type: ReDIF-Article 1.0
Author-Name: Chaoshin Chiao
Author-X-Name-First: Chaoshin
Author-X-Name-Last: Chiao
Title: The relationship between R&D and physical investment of firms in science-based industries
Abstract:
This study is motivated by the one-way-inducement hypothesis that R&D
induces (Granger-causes) physical investment, but physical investment does
not induce R&D, raised by Lach and Schankerman (1989) and Lach and Rob
(1996). It is demonstrated that their results do not hold, after extending
the sample that matches their criteria by including more time periods
and/or more firms. Namely, it is found that the Granger causality between
R&D and physical investment occurs both ways. It is also shown that their
contemporary relationship, derived by dynamic simultaneous expressions, is
positive in both ways, from current R&D to current physical investment and
from current physical investment to current R&D. Moreover, previous R&D
affects current physical investment, and previous physical investment also
affects current R&D.
Journal: Applied Economics
Pages: 23-35
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/713758640
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713758640
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:23-35
Template-Type: ReDIF-Article 1.0
Author-Name: Suzanne Heller Clain
Author-X-Name-First: Suzanne Heller
Author-X-Name-Last: Clain
Author-Name: Karen Leppel
Author-X-Name-First: Karen
Author-X-Name-Last: Leppel
Title: An investigation into sexual orientation discrimination as an explanation for wage differences
Abstract:
This study explores the effects of sexual orientation on earnings. It is
found that, ceteris paribus, men living with male partners tend to earn
less than other men, and women living with female partners tend to earn
more than other women. These earnings differentials tend to vary by
region. They also vary by education and occupation for men, and with the
presence of minor children for women. In addition, the age-earnings
profiles of women living with female partners tend to be higher, flatter,
and less concave than those of other women.
Journal: Applied Economics
Pages: 37-47
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122961
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122961
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:37-47
Template-Type: ReDIF-Article 1.0
Author-Name: Reginald Darius
Author-X-Name-First: Reginald
Author-X-Name-Last: Darius
Title: Debt neutrality: theory and evidence from developing countries
Abstract:
This paper reviews the Ricardian-Barro hypothesis and tests the basic
postulate of the model for a sample of developing countries including
Mexico and Venezuela. Two specifications are utilized, the first is based
on the simple consumption model associated with the work of Kormendi
(1983). The alternative is based on a model developed by Haque and Montiel
(1987). The outcome of the two-stage least square estimation technique
rejected the hypothesis in Mexico, Trinidad and Tobago and Venezuela, all
countries, which underwent adjustment programmes. However these results
were reversed when the alternative model was utilized due to liquidity
constraint and possibly the Yaari-Blanchard effect. The contradictory
outcome alludes to the sensitivity of the results to the model specified.
Journal: Applied Economics
Pages: 49-58
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122044
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:49-58
Template-Type: ReDIF-Article 1.0
Author-Name: Allan Layton
Author-X-Name-First: Allan
Author-X-Name-Last: Layton
Author-Name: Masaki Katsuura
Author-X-Name-First: Masaki
Author-X-Name-Last: Katsuura
Title: A new turning point signalling system using the Markov switching model with application to Japan, the USA and Australia
Abstract:
A new business cycle turning point signalling system is proposed and
examined by using Japanese, US and Australian composite indexes of
economic activity. Time varying transition probabilities in a Markov
regime-switching model are used as the basis of the signalling system. The
performance of the system is satisfactory, though its reliability varies
between peaks and troughs and across countries. Based on data up until May
1998, the system suggests the absence of turning points in any of the
three countries in 1998.
Journal: Applied Economics
Pages: 59-70
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121698
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121698
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:59-70
Template-Type: ReDIF-Article 1.0
Author-Name: Quinn Weninger
Author-X-Name-First: Quinn
Author-X-Name-Last: Weninger
Title: An analysis of the efficient production frontier in the fishery: implications for enhanced fisheries management
Abstract:
The transformation relationship between factor inputs and outputs - the
efficient production frontier (EPF)- contains important information for
fisheries managers. A directional technology distance function model of
the harvesting technology is used to measure changes in the EPF over time.
Frontier shifts are summarized with input- and output-based frontier
indicators that are interpreted as measures of bioeconomic productivity
change. The model is applied to the Mid-Atlantic surf clam and ocean
quahog fishery.
Journal: Applied Economics
Pages: 71-79
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122937
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122937
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:71-79
Template-Type: ReDIF-Article 1.0
Author-Name: Ju-Chin Huang
Author-X-Name-First: Ju-Chin
Author-X-Name-Last: Huang
Title: Precision of dichotomous choice contingent valuation welfare measures: some simulation results
Abstract:
The purpose of this research is to examine the roles of individuals'
heterogeneous economic factors and model misspecification in dichotomous
choice contingent valuation welfare measurement. Willingness to pay for an
improvement of environmental quality is studied. Simulation results
indicate that the precision of welfare estimates increases with
individuals' income levels and decreases with the price of the
quality-related good. The dependence of the consumption of the
quality-related good on the environmental quality also affects the
reliability of welfare estimates.
Journal: Applied Economics
Pages: 91-101
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122344
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122344
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:91-101
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Title: Nominal and real effective exchange rates of middle eastern countries and their trade performance
Abstract:
Indexes of real and nominal effective exchange rates that are published
by the IMF, are mostly for industrial countries. None of the Middle
Eastern countries have received any attention on this regard. This paper
tries to close the gap by constructing such indexes for 11 middle eastern
countries over 1971(I)-1994(IV) period. As an application, long-run
response of their trade balance to devaluation is also investigated.
Journal: Applied Economics
Pages: 103-111
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122490
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122490
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:103-111
Template-Type: ReDIF-Article 1.0
Author-Name: Kare Johansen
Author-X-Name-First: Kare
Author-X-Name-Last: Johansen
Author-Name: Kristen Ringdal
Author-X-Name-First: Kristen
Author-X-Name-Last: Ringdal
Author-Name: Thortle Thøring
Author-X-Name-First: Thortle
Author-X-Name-Last: Thøring
Title: Firm profitability, regional unemployment and human capital in wage determination
Abstract:
This paper presents an analysis of wage formation in the Norwegian
private sector using data for individual workers matched with firm level
information and regional unemployment. A key issue is to test whether or
not firm specific variables affect individual wages after controlling for
individual specific factors and working conditions. The results imply
positive effects of firm specific profitability and firm size. The
elasticity of wages with respect to value added per worker and firm size
is 5% and 3.3%, respectively. Empirical evidence of a downward sloping
regional wage curve is also reported, while there is no support of the
hypothesis of compensating wage differentials. Since data for three levels
of aggregation are used, the OLS estimates of the standard errors are
downward biased. Therefore, results using a random effects model are also
reported, taking the multi-level structure of the data into account.
Journal: Applied Economics
Pages: 113-121
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122818
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122818
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:113-121
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Sanjuan
Author-X-Name-First: Ana
Author-X-Name-Last: Sanjuan
Author-Name: Jose Gil
Author-X-Name-First: Jose
Author-X-Name-Last: Gil
Title: Price transmission analysis: a flexible methodological approach applied to European pork and lamb markets
Abstract:
The study of spatial price relationships helps to explain market
performance and their degree of integration. Applying only one method of
analysis may not be flexible enough to account for the complex
interactions of prices in separated markets. This paper complements usual
cointegration tests with a description of dynamic features and patterns of
causality among price series. The method proposed is applied to study
spatial pork and lamb prices relationships within the EU in the period
1988-1995. The results indicate that European markets for both commodities
are integrated, not only in the long run but in the short run as well,
although the price transmission process is more efficient in the porkmeat
industry.
Journal: Applied Economics
Pages: 123-131
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122171
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122171
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:123-131
Template-Type: ReDIF-Article 1.0
Author-Name: Marta Sanmartin
Author-X-Name-First: Marta
Author-X-Name-Last: Sanmartin
Title: Linearity of the return to education and self selection
Abstract:
This paper investigates the earnings-education profile in Spain. First no
functional form is imposed on this relation but instead dummy variables
are used for each year of education. Second, different alternatives are
analysed until the best parametric form is found. Moreover problems
related to the self selection of individuals and to the segmentation of
the labour market based on the educational level are considered. The main
results indicate that the effect of education on earnings is not
significant until individuals finish secondary education and from there
onwards the relationship can be considered linear.
Journal: Applied Economics
Pages: 133-142
Issue: 1
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121772
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121772
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Handle: RePEc:taf:applec:v:33:y:2001:i:1:p:133-142
Template-Type: ReDIF-Article 1.0
Author-Name: Francois-Charles Wolff
Author-X-Name-First: Francois-Charles
Author-X-Name-Last: Wolff
Title: Private intergenerational contact in France and the demonstration effect
Abstract:
This study analyses motives for intergenerational contact from adult
children to their middle-aged parents. If these transfers may be explained
either by altruism or by exchange, we mainly focus on the demonstration
effect where households take care of their own parents in order to elicit
a future support from their children. We test the model using a
cross-sectional survey from 1992 about private transfers in France.
According to the data, the presence of children increases the amount of
visits that respondents provide to their parents and the econometric
results still hold after controlling for unobserved familial heterogeneity
using fixed effects. Although this empirical evidence is consistent with
the demonstration effect, we suggest an alternative interpretation for the
positive correlation based on the care of grandchildren.
Journal: Applied Economics
Pages: 143-153
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122181
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122181
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:143-153
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Arango
Author-X-Name-First: Luis
Author-X-Name-Last: Arango
Author-Name: Andres Gonzalez
Author-X-Name-First: Andres
Author-X-Name-Last: Gonzalez
Title: Some evidence of smooth transition nonlinearity in Colombian inflation
Abstract:
Evidence of smooth transition autoregressive (STAR) representations is
found in two, out of three, time series of different measures of annual
inflation in Colombia during this decade for monthly data. The STAR-type
nonlinearities are asymmetric for inflation computed as the variation of
CPI while for (a measure of) core inflation are symmetric. Thus, LSTAR and
ESTAR models were, respectively, estimated. No evidence of nonlinearity is
found for traded goods inflation. Given the local dynamic properties of
the estimated LSTAR model, only positive shocks to prices could shift
negative accelerating inflation rate from the upper to the lower regime.
By the same token, only stochastic shocks can move the core accelerating
inflation rate from the outer regime to the middle one but the explosive
nature of this regime will impulse the accelerating inflation rate to the
outer one.
Journal: Applied Economics
Pages: 155-162
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122443
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122443
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:155-162
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Giuffrida
Author-X-Name-First: Antonio
Author-X-Name-Last: Giuffrida
Author-Name: Hugh Gravelle
Author-X-Name-First: Hugh
Author-X-Name-Last: Gravelle
Title: Measuring performance in primary care: econometric analysis and DEA
Abstract:
We use data from the Health Service Indicators database to compare
different methods of measuring the performance of English Family Health
Services Authorities (FHSAs) in providing primary care. A variety of
regression and data envelopment analysis methods are compared as summary
efficiency measures of individual FHSA performance. The correlation of the
rankings of FHSAs across DEA and regression methods, across two years of
data and across three different specifications of the technology of
primary care are examined. Efficiency scores are highly correlated within
variants of the two methods, and across years for a given method. Inter
method correlations are smaller and correlations across different
specifications of the primary care production process are negligible and
sometime negative.
Journal: Applied Economics
Pages: 163-175
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122522
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122522
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:163-175
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Podrecca
Author-X-Name-First: Elena
Author-X-Name-Last: Podrecca
Author-Name: Gaetano Carmeci
Author-X-Name-First: Gaetano
Author-X-Name-Last: Carmeci
Title: Fixed investment and economic growth: new results on causality
Abstract:
This study re-examines the issue of causality between investment shares
and economic growth. A methodology is applied based on Arellano and Bond
(1991), and Holtz-Eakin, Newey and Rosen (1988) to quinquennial panel data
on growth and investment shares for the post war period and shows that,
contrary to previous results in the literature, causality between fixed
investment and growth runs in both directions. Investment shares
Granger-cause growth rates and growth rates Granger-cause investment
shares. Granger causality from investment shares to growth rates is found
to be negative. The result is in contrast with a capital fundamentalist
view which sees fixed investment as the key to long run growth, but is
fully consistent with the predictions of Solow-type growth models.
Journal: Applied Economics
Pages: 177-182
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122890
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122890
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:177-182
Template-Type: ReDIF-Article 1.0
Author-Name: Guang Wan
Author-X-Name-First: Guang
Author-X-Name-Last: Wan
Author-Name: Enjiang Cheng
Author-X-Name-First: Enjiang
Author-X-Name-Last: Cheng
Title: Effects of land fragmentation and returns to scale in the Chinese farming sector
Abstract:
Using household survey data from rural China, economies of scale as
measured by returns to scale and the effects of land fragmentation on crop
outputs are examined. While these effects are found to be detrimental,
statistically significant and substantial, existing economies of scale
appear to be too small to suggest radical land policy changes in China.
Journal: Applied Economics
Pages: 183-194
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121811
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121811
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:183-194
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Martin
Author-X-Name-First: Stephen
Author-X-Name-Last: Martin
Title: The implications for the UK Exchequer of an ethical arms export policy
Abstract:
For the UK, defence exports provide many jobs but critics point to the
morality and human rights aspects of the arms trade. Recent speeches by
the foreign secretary suggest that Mr Cook is acutely aware of the
trade-off between a more ethical arms export policy and jobs in the
defence industry. Recent research suggests that government subsidies for
arms exports cost the UK taxpayer between £228 million and £708
million per annum. However, these figures ignore the Exchequer costs of
the jobs lost as a result of the reduction in arms exports. This study
uses information on the expected number of job losses, and the Exchequer
cost per job destroyed, to estimate the employment costs to the Exchequer
associated with a one-third reduction in UK defence exports. These costs
are then subtracted from the subsidy savings to derive the overall net
financial saving to the taxpayer for a one-third reduction in UK arms
exports.
Journal: Applied Economics
Pages: 195-199
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121768
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121768
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:195-199
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Wheatley Price
Author-X-Name-First: Stephen Wheatley
Author-X-Name-Last: Price
Title: The unemployment experience of male immigrants in England
Abstract:
In this paper the unemployment experience of immigrant men in the English
labour market is examined, using 1993-1994 data from the Quarterly Labour
Force Survey of the United Kingdom. Hypotheses proposed by Chiswick (1982)
are investigated, for both the claimant count and the ILO measures of
unemployment, using logistic regression analysis. Our results show that
recent white and nonwhite immigrant men experience much higher levels of
unemployment than earlier cohorts. For whites, this effect is transitory,
whereas for nonwhites unemployment rates adjust more slowly as the
duration of stay increases. Immigrant unemployment rates also vary
considerably with country of birth.
Journal: Applied Economics
Pages: 201-215
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121911
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121911
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:201-215
Template-Type: ReDIF-Article 1.0
Author-Name: Sven-Olov Daunfeldt
Author-X-Name-First: Sven-Olov
Author-X-Name-Last: Daunfeldt
Author-Name: Xavier De Luna
Author-X-Name-First: Xavier
Author-X-Name-Last: De Luna
Title: The efficacy and cost of regime shifts in inflation policies-Evidence from New Zealand and Sweden
Abstract:
In this paper a comparative study of the regime shift in inflation
policies in New Zealand and Sweden is performed. A nonparametric
regression method is used to decompose the inflation time series into
three components of variation: a long-term trend, a medium-term (cyclical
and transient variations) trend and a short-term shocks component. This
allows study of the transition process from the high inflation
characterizing the end of the 1970s and the 1980s to the low inflation
observed during the 1990s. It is found that in New Zealand, although it is
initially delayed, the decrease in inflation happens at a faster pace than
in Sweden. This may indicate that reforms were more efficient in New
Zealand. A clear link is also shown between the rising unemployment and
the transition from high to low inflation. Furthermore, while in New
Zealand a downward adjustment of the unemployment rate happens directly
after the transition period, in Sweden there seems to be persistence in
high unemployment.
Journal: Applied Economics
Pages: 217-224
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121726
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121726
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:217-224
Template-Type: ReDIF-Article 1.0
Author-Name: Roy Batchelor
Author-X-Name-First: Roy
Author-X-Name-Last: Batchelor
Title: How useful are the forecasts of intergovernmental agencies? The IMF and OECD versus the consensus
Abstract:
This study compares the accuracy and information content of economic
forecasts for G7 countries made in the 1990s by the OECD and IMF. The
benchmarks for comparison are the average forecasts of private sector
economists published by Consensus Economics. With few exceptions, the
private sector forecasts are less biased and more accurate in terms of
mean absolute error and root mean square error. Formal tests show these
differences are statistically significant for forecasts of real growth and
production, less so for forecasts of inflation and unemployment. Overall,
there appears little information in the OECD and IMF forecasts that could
be used to reduce significantly the error in the private sector forecasts.
Journal: Applied Economics
Pages: 225-235
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121785
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121785
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:225-235
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Weber
Author-X-Name-First: Christian
Author-X-Name-Last: Weber
Title: Alternative lag length selection criteria and the split-trend stationarity hypothesis
Abstract:
This study asks whether evidence that key macroeconomic time series are
stationary around broken trends is robust to using different criteria to
determine the lag length in the ADF regressions. When lag lengths are
determined using the Schwarz criterion or two different
specific-to-general methods, tests for unit roots in several series in the
Nelson-Plosser (1982) data and in US postwar real GNP find weaker evidence
against the unit root hypothesis than either Perron (1989), who set the
date for the break in the trend a priori or Zivot and Andrews (1992), who
determined the break date endogenously.
Journal: Applied Economics
Pages: 237-247
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121781
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121781
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:237-247
Template-Type: ReDIF-Article 1.0
Author-Name: Eleanor Doyle
Author-X-Name-First: Eleanor
Author-X-Name-Last: Doyle
Title: Exchange rate volatility and Irish-UK trade, 1979-1992
Abstract:
This study examines how exchange-rate volatility affected Ireland's
exports to its most important trading partner, the United Kingdom, from
1979 to 1992. To ensure reliable inferences regarding income and price
elasticities and the impact of exchange rate volatility on exports, the
time series properties of the series used are investigated. The analysis
here is conducted at both aggregate and 2-digit SITC Division levels since
exchange rate volatility can reasonably be presumed to affect sectors
differently. Since expectations matter for exchange rate determination
real volatility was generated according to a first-order GARCH process.
Both real and nominal volatility were important determinants for over 35%
of Irish-UK trade, with positive effects predominating. This may be due to
the nature of Irish firms operating in a small open economy where they
have little option in dealing with increased exchange rate risk except to
'weather the storm' for fear of losing market share or facing costs of
either exit, re-entry, or both.
Journal: Applied Economics
Pages: 249-265
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122999
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122999
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:249-265
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Otero
Author-X-Name-First: Jesus
Author-X-Name-Last: Otero
Title: Coffee export booms and monetary disequilibrium: some evidence for Colombia
Abstract:
The theoretical models that analyse the monetary consequences of export
booms show that under a regime of fixed exchange rates, they affect not
only the demand for money, via real income, but also the money supply via
foreign exchange accumulation. Within this theoretical framework, this
study proposes an empirical approach to determine whether the coffee booms
of the second half of the 1970s and mid-1980s led to excess money supply
in the Colombian economy. The findings provide evidence in favour of a
direct association between coffee export booms and excess money supply,
implying that external disturbances jeopardize the ability of the economic
authorities to carry out successful monetary policy.
Journal: Applied Economics
Pages: 267-276
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121935
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121935
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:267-276
Template-Type: ReDIF-Article 1.0
Author-Name: Pei-Ing Wu
Author-X-Name-First: Pei-Ing
Author-X-Name-Last: Wu
Author-Name: Chu-Li Huang
Author-X-Name-First: Chu-Li
Author-X-Name-Last: Huang
Title: Actual averting expenditure versus stated willingness to pay
Abstract:
The purpose of this study is to perform a complete comparison of actual
averting expenditure and stated willingness to pay measures, and to
determine if the averting expenditure is a lower bound of the willingness
to pay measured from contingent valuation experiment as suggested by
literature. In addition to the single value comparison, Bootstrap, Krinsky
and Robb, Jackknife, and Cameron are four simulation methods used to
calculate confidence intervals for response function. Sample sizes of 100,
200, and 1000 are simulated 100 and 200 times respectively. A set of data
with 540 households from a contingent policy referendum survey is employed
for our purpose. Under a specific level of BOD improvement, a one-to-one
single mean value comparison of the actual averting expenditure is greater
than the mean willingness to pay from utility difference model. The
empirical results are consistent with the theoretical expectation for
expenditure difference that averting expenditure is a lower bound of
willingness to pay generated from the contingent valuation method. A
confidence interval, which contains the true mean willingness to pay at
least 90% of the times, includes the actual averting expenditure as a
lower bound of the mean willingness to pay as theory predicts.
Journal: Applied Economics
Pages: 277-283
Issue: 2
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122947
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122947
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Handle: RePEc:taf:applec:v:33:y:2001:i:2:p:277-283
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Falk
Author-X-Name-First: Martin
Author-X-Name-Last: Falk
Author-Name: Bertrand Koebel
Author-X-Name-First: Bertrand
Author-X-Name-Last: Koebel
Title: A dynamic heterogeneous labour demand model for German manufacturing
Abstract:
This study presents an application of the Generalized Error Correction
Model (GECM) for heterogeneous factor demands based on the quadratic cost
function., Using data for 26 West German manufacturing industries over the
period 1976-1995, it turns out that less general specifications such as
the partial adjustment and the static AR(1) model are rejected.,
Furthermore, both short-run and long-run labour demands of different skill
classes are inelastic., Unskilled labour is found to have a somewhat
higher wage elasticity in absolute terms than medium-skilled labour., A
small part of the shift in demand away from unskilled labour can be
explained by the substitutability relationship between intermediate
materials and unskilled labour., Between 6 and 13 percent of the observed
shift towards high-skilled labour can be explained by capital
accumulation.,
Journal: Applied Economics
Pages: 339-348
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.,1080/00036840122012
File-URL: http://www.tandfonline.com/doi/abs/10.,1080/00036840122012
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:339-348
Template-Type: ReDIF-Article 1.0
Author-Name: Li-Hsueh Chen
Author-X-Name-First: Li-Hsueh
Author-X-Name-Last: Chen
Title: Inflation, real short-term interest rates, and the term structure of interest rates: a regime-switching approach
Abstract:
This study explores the implications of the expectations hypothesis by
examining the implied term premium, in conjunction with an explicit
description of processes generating both inflation and short-term real
interest rates., It models inflation and short-term real interest rates
using a technique that allows for changes in regimes and generates future
forecasts of inflation and real interest rates., The hypothesis is that
persistent shifts in the term premium under the expectations hypothesis
might come from forecast errors by econometricians if regime shifts are
omitted, shifts which are however observed by the agents., This study
examines whether persistent shifts in the term premium can be eliminated
after taking into account the regime shifts in the processes for inflation
and real interest rates., The results indicate that there still exists
persistence in the term premium., However the implied term premium
generated from regime-switching models shows less persistence than those
from ARIMA models., Although the regime-switching model does not reconcile
the data with the expectations hypothesis, the results suggest that the
persistence of the term premium obtained from a fixed-coefficient ARIMA
model may be due in part to systematic forecast errors that are eliminated
by allowing for regime changes.,
Journal: Applied Economics
Pages: 393-400
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.,1080/00036840122884
File-URL: http://www.tandfonline.com/doi/abs/10.,1080/00036840122884
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:393-400
Template-Type: ReDIF-Article 1.0
Author-Name: Kim Taegi
Author-X-Name-First: Kim
Author-X-Name-Last: Taegi
Author-Name: Keun-Yeob Oh
Author-X-Name-First: Keun-Yeob
Author-X-Name-Last: Oh
Title: Country size, income level and intra-industry trade
Abstract:
This study investigates three testable hypotheses of intra-industry
trade., It begins by developing a theoretical, two country model., The
model explicitly includes two goods: differentiated products and
homogeneous goods., Then three empirical hypotheses are derived as
follows., The share of intra-industry trade will be large: (a) if the two
economies are of similar size, (b) if the capital-labour endowment ratio
of both countries is similar, and (c) if the total size of the two
economies is large., From the cross-sectional analysis using 1970-1994
data, results are obtained that support the model., Furthermore, the
results are confirmed using panel analysis on the pooled data.,
Journal: Applied Economics
Pages: 401-406
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.,1080/00036840122211
File-URL: http://www.tandfonline.com/doi/abs/10.,1080/00036840122211
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:401-406
Template-Type: ReDIF-Article 1.0
Author-Name: John Mullen
Author-X-Name-First: John
Author-X-Name-Last: Mullen
Title: Long-run technical change and multifactor productivity growth in US manufacturing
Abstract:
This study utilizes a translog cost function to produce econometric
estimates of the separate influences of technical change versus scale
efficiency in contributing to multifactor productivity growth within the
US manufacturing sector. The analysis generates (two-digit)
industry-specific parameters that capture the effects of output versus
time-related shifts in the cost function over the 1949-1991 period. Thus
initial evidence concerning the relative importance of technical progress
(versus 'scale') cannot be provided as a source of productivity gains
within two-digit industries. The parametric estimates of total factor
productivity growth are compared with existing Divisia measures to explore
the shortcomings of the growth accounting technique. These long-run
patterns hold implications for the productivity convergence hypothesis
traced to knowledge spillovers between industries.
Journal: Applied Economics
Pages: 301-308
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121703
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121703
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:301-308
Template-Type: ReDIF-Article 1.0
Author-Name: Ides Nicaise
Author-X-Name-First: Ides
Author-X-Name-Last: Nicaise
Title: Human capital, reservation wages and job competition: Heckman's lambda re-interpreted
Abstract:
This study integrates insights from three theories into a single model
explaining the simultaneous distribution of employment and wages. Human
capital theory is taken as the general framework, whereas search theory
and the more recent 'crowding' or 'job competition' hypothesis are used to
explain selectivity in employment and the resulting bias in wage
regressions. An empirical test on Belgian data, using a two-stage
probit-OLS model, indicates that the crowding theory dominates the search
hypothesis for men. For women, it seems to be outweighed by relatively
higher reservation wages, probably due to women's different behaviour with
respect to family responsibilities.
Journal: Applied Economics
Pages: 309-315
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121810
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121810
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:309-315
Template-Type: ReDIF-Article 1.0
Author-Name: Jari Ritsila
Author-X-Name-First: Jari
Author-X-Name-Last: Ritsila
Author-Name: Marko Ovaskainen
Author-X-Name-First: Marko
Author-X-Name-Last: Ovaskainen
Title: Migration and regional centralization of human capital
Abstract:
The objective of the study is to analyse relationship between migration
and the regional redistribution of human capital. The analysis follows the
human capital approach that considers migration as a result of rational
decision making and a utility maximization process. The emphasis is on the
decision making of a potential migrant. The migration decision is assumed
to be the outcome of personal, household and regional characteristics. The
results of the study indicate the following. First, it supports the
generally accepted hypothesis that the highly educated are more prone to
move than the rest of the population. Second, the regional characteristics
of both the origin area and the destination area also have a significant
effect on migratory behaviour. Individuals are more likely to migrate from
remote regions to centres of economic activity. Third, as a result of two
previous findings, reallocation of human capital seems to be taking place
in Finland.
Journal: Applied Economics
Pages: 317-325
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122485
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122485
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:317-325
Template-Type: ReDIF-Article 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Title: Property and the economy in the short-term and the long-run
Abstract:
This study inquires into the relationships between property and the
economy in both short-term and long-run. It has been made evident that
property is an integrated part of the economy and its performance is
closely related to a variety of economic activities, especially the real
sectors in the economy. Moreover, the relationships of property with other
sectors in the economy are stronger in the long-run than that in the
short-term, due to the long-run attribute of property development and
investment.
Journal: Applied Economics
Pages: 327-337
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122756
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122756
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:327-337
Template-Type: ReDIF-Article 1.0
Author-Name: Ignacio Abasolo
Author-X-Name-First: Ignacio
Author-X-Name-Last: Abasolo
Author-Name: Rob Manning
Author-X-Name-First: Rob
Author-X-Name-Last: Manning
Author-Name: Andrew Jones
Author-X-Name-First: Andrew
Author-X-Name-Last: Jones
Title: Equity in utilization of and access to public-sector GPs in Spain
Abstract:
A framework is outlined for testing empirically whether utilization of
and access to public-sector GPs in Spain in 1993 was consistent with the
twin criteria of horizontal and vertical equity, where these are defined
with respect to need. Vertical (horizontal) inequities in access are
assessed by including interactions between determinants of access and need
(non-need) variables in a utilization equation. Findings are consistent
with the principle of vertical equity in the utilization of GP services,
but are not consistent with horizontal equity. Travel time for individuals
who did not visit their GP are imputed but it is not a significant
determinant of utilization or access. However, caution is expressed when
interpreting these findings, as they may be contaminated by biases arising
from unit non-response, measurement error and simultaneity. The paper
concludes with a set of recommendations for future studies.
Journal: Applied Economics
Pages: 349-364
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122511
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122511
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:349-364
Template-Type: ReDIF-Article 1.0
Author-Name: Yasuhide Tanaka
Author-X-Name-First: Yasuhide
Author-X-Name-Last: Tanaka
Title: Employment tenure, job expectancy, and earnings profile in Japan
Abstract:
The purpose of this study is to examine the relationships between
employment tenure and earnings profile in Japan. Since the Japanese labour
market has recently experienced substantial changes, it is natural for the
Japanese employment and compensation system to be influenced by such
changes. In this study, the changes that have happened to the Japanese
employment and compensation system in recent years have been considered
empirically by focusing on the relationships between employment tenure and
earnings profiles. To do this, a forward-looking variable called 'expected
job tenure (or job expectancy)' is introduced and the effects of it on
earnings profile.
Journal: Applied Economics
Pages: 365-374
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122873
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122873
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:365-374
Template-Type: ReDIF-Article 1.0
Author-Name: Jane Fry
Author-X-Name-First: Jane
Author-X-Name-Last: Fry
Author-Name: Tim Fry
Author-X-Name-First: Tim
Author-X-Name-Last: Fry
Author-Name: Keith McLaren
Author-X-Name-First: Keith
Author-X-Name-Last: McLaren
Author-Name: Tanya Smith
Author-X-Name-First: Tanya
Author-X-Name-Last: Smith
Title: Modelling zeroes in microdata
Abstract:
Although the literature contains a number of suggestions for dealing with
problems caused by a preponderance of zero expenditure observations that
frequently occur in micro level budget studies, in general, these
suggestions seem to be either empirically intractable or theoretically
unappealing. In this paper it is argued that a natural theoretical
specification can be motivated by duality theory and that the statistical
technique of compositional data analysis provides a corresponding
complementary stochastic specification. The resulting model is a
consistent theoretical and stochastic specification for handling the
possibility of a zero demand over a range of expenditures and/or prices.
The model is then applied to the 1988/89 Australian Household Expenditure
Survey.
Journal: Applied Economics
Pages: 383-392
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122916
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122916
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:383-392
Template-Type: ReDIF-Article 1.0
Author-Name: Laurens Cherchye
Author-X-Name-First: Laurens
Author-X-Name-Last: Cherchye
Title: Using data envelopment analysis to assess macroeconomic policy performance
Abstract:
It is common practice to summarize the macroeconomic performance of
countries in terms of the four well-known dimensions captured by the magic
diamond of the OECD. This study provides a comparison of several synthetic
indicators that merge the four separate indicators into one single
statistic. These indicators are inspired by Data Envelopment Analysis
(DEA)-based models, which allow for unequal weighting of the different
economic objectives. The calculated weights then act as proxies for the
true policy priorities. Comparison of the models focuses on the underlying
assumptions as well as on the empirical results they generate.
Journal: Applied Economics
Pages: 407-416
Issue: 3
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122353
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Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:407-416
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Natke
Author-X-Name-First: Paul
Author-X-Name-Last: Natke
Title: The firm demand for liquid assets in an inflationary environment
Abstract:
Measures of inflation and the price level are added to the standard model
of liquid asset demand and estimated with cross-section data on Brazilian
manufacturing firms over a four-year period characterized by substantial
inflation (annual rates of 19, 23, 34 and 35%). Results indicate that
economies of scale exist in a model that is stable over time. Interest
rates have a strong and elastic impact on liquid asset demand when
inflation is explicitly controlled for although this result is not
consistent across all subsets of data used. The usual assumption of a
unitary price level elasticity of liquid asset demand is rejected and
firms appear to conserve on liquid asset holdings as the rate of inflation
increases suggesting more careful management of payments flows. Some of
these findings contradict those of Ungar and Zilberfarb (1980). There are
also some difference in behaviour across ownership groups: Brazilian firms
do not exhibit economies of scale while multinationals do; and Brazilian
firms adjust actual to desired balances faster than multinational firms.
Journal: Applied Economics
Pages: 427-436
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122635
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122635
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:427-436
Template-Type: ReDIF-Article 1.0
Author-Name: Martyn Duffy
Author-X-Name-First: Martyn
Author-X-Name-Last: Duffy
Title: Advertising in consumer allocation models: choice of functional form
Abstract:
This study investigates the empirical performance of four different
functional forms for advertising-augmented consumer allocation models. The
investigation is carried out within the context of the UK alcoholic drinks
markets. The aims of the study are twofold: (i) to assess which of the
four functional forms provides the best explanation of the data and may
serve, therefore, as the most suitable framework for investigating
advertising effects in these markets; and (ii) to consider whether the
findings with regard to advertising effects are robust and consistent
across model specifications. Advertising is found to have had no
significant effect upon the 'product composition' or 'level' of total
alcoholic drink consumption in the UK over the period from 1964 to 1996,
and this result is robust with respect to variations in the specification
of functional form. The consumption of alcoholic drink is affected by
relative prices, total consumer budgeted expenditures and, to some extent,
by autonomous shifts in tastes. The balance of the evidence from tests for
functional form appeared to favour the Almost Ideal Demand system as a
framework for investigating the influence of advertising and other factors
on drink consumption.
Journal: Applied Economics
Pages: 437-456
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121721
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121721
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:437-456
Template-Type: ReDIF-Article 1.0
Author-Name: Michael McCann
Author-X-Name-First: Michael
Author-X-Name-Last: McCann
Title: Cross-border acquisitions: the UK experience
Abstract:
This paper tests a composite empirical model of cross-border acquisitions
involving UK firms between 1987-1995 using panel data analysis. The
empirical model includes capital market variables and regulatory variables
derived from the existing literature. The results show that models that
explain cross-border acquisitions through capital market imperfections are
not significant. Cross-border activity has a strong relationship with the
level of the UK stock market suggesting that crossborder acquisitions are,
in some part, an extension of domestic activity. Corporate tax
differentials also have significant impact on activity.
Journal: Applied Economics
Pages: 457-461
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122021
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:457-461
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Sicilian
Author-X-Name-First: Paul
Author-X-Name-Last: Sicilian
Author-Name: Adam Grossberg
Author-X-Name-First: Adam
Author-X-Name-Last: Grossberg
Title: Investment in human capital and gender wage differences: evidence from the NLSY
Abstract:
This paper uses data from the National Longitudinal Survey of Youth
(NLSY) to investigate gender differences in returns to various forms of
human capital. Since the NLSY includes relatively detailed information
regarding on- and off-the-job training, we place special emphasis on
measuring gender differences in the incidence of and returns to formal
post-school training. Also considered is the role of nonhuman capital
factors such as industry and occupation in explaining the wage gap. It is
found that about 60% of the gender wage gap in the sample is explained by
mean differences in individual characteristics and market circumstances.
This suggests a smaller role for discrimination in explaining the wage gap
than previous research has found. The research indicates that training
does not affect the gender wage gap. Also it is found that there is no
statistically significant difference in the rate of return to other
measures of human capital for women versus men. Our research suggests that
the largest factors contributing to the wage gap are differences in the
stocks of human capital for men and women, and differences in the
distributions of men and women across industries and occupations.
Journal: Applied Economics
Pages: 463-471
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840123000
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840123000
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:463-471
Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Chung
Author-X-Name-First: Sangho
Author-X-Name-Last: Chung
Title: The learning curve and the yield factor: the case of Korea's semiconductor industry
Abstract:
This article attempts to find out how the Korean economy has grown so
rapidly in a short time span of less than 30 years. For that purpose, it
focuses on the development of the Korean semiconductor industry-more
specifically, the memory-chip segment of the industry-as a case in point.
To test the hypothesis that the learning curve effects have been
significant in the memory-chip industry, 'yield factor' (the ratio of
sellable chips to total chips in a wafer) in semiconductor production is
used as a measure of the learning progression. That is, by tracing how the
yield factor for each generation of memory chips has increased, one is
able to see how well the Korean chip makers have exploited the learning
effects. This article improves the learning-by-doing modelling by
introducing a richer set of yield data; and the unit of analysis employed
throughout the article is at the firm level, which is not common in the
literature dealing with East Asian development as well as the economics of
technology, thus enhancing understanding of the industry dynamics.
Journal: Applied Economics
Pages: 473-483
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122474
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122474
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:473-483
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoming Li
Author-X-Name-First: Xiaoming
Author-X-Name-Last: Li
Title: Government revenue, government expenditure, and temporal causality: evidence from China
Abstract:
Dissatisfied with little evidence provided on various hypotheses
concerning the revenue-expenditure relation in China, this paper is an
empirical endeavour to fill the gap through a battery of econometric tests
for causality based on vector error correction and vector autoregression
models. A more comprehensive testing strategy for unit roots and
cointegration has been suggested, and a bidirectional causality pattern
has been found in China's government finance. The paper thus concludes
that attempts simply to change revenue or expenditure or both without
taking into account of the interdependence between the two may be
counter-productive, and the effects on aggregate demand of government
debt-financing in the presence of inflation may not be as detrimental as
some economists would expect.
Journal: Applied Economics
Pages: 485-497
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122982
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122982
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:485-497
Template-Type: ReDIF-Article 1.0
Author-Name: Pradeep Agrawal
Author-X-Name-First: Pradeep
Author-X-Name-Last: Agrawal
Title: The relation between savings and growth: cointegration and causality evidence from Asia
Abstract:
The direction of causality between savings and growth remains unclear
even though it is of critical importance for development policy. In this
paper, Granger causality analysis is undertaken for seven Asian countries
using the VECM (Engle and Granger) and VAR procedures. We find that in
most cases, the direction of causality runs primarily from growth (or
income) to savings, although in some countries, there is also evidence of
a feedback effect from savings to income and growth. Thus, development
policy should focus less on promoting high savings rates and more on
promoting high growth rates. Estimation of the savings functions are
presented using Engle and Granger's Static OLS and Stock and Watson's
dynamic OLS (DOLS) procedures where appropriate. The high savings rates in
Asia are found to be due to the high rate of growth of income per capita,
declining shares of dependent population, and some special institutional
features, such as the high central provident fund rates in Singapore.
Interest rates are found to have little impact on savings.
Journal: Applied Economics
Pages: 499-513
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122210
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122210
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:499-513
Template-Type: ReDIF-Article 1.0
Author-Name: S. J. Erenburg
Author-X-Name-First: S. J.
Author-X-Name-Last: Erenburg
Author-Name: David. Goebel
Author-X-Name-First: David.
Author-X-Name-Last: Goebel
Title: The effects of the international-domestic interest rate gap on US output
Abstract:
This paper examines how the relationships linking money to real output
are altered when an international-domestic interest rate gap is included
in the model. The results indicate that both the international-domestic
interest rate gap and term structure exert a statistically significant
effect on real economic activity. In addition, fluctuations in these
variables contain significant information about future changes in real
output. An interesting finding is that while the term structure dominates
the international-domestic interest rate gap when estimating the entire
time period, 1970:1-1996:4, the international-domestic interest rate gap
clearly dominates in the more recent time period, 1985:1-1996:4.
Journal: Applied Economics
Pages: 515-521
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122868
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122868
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:515-521
Template-Type: ReDIF-Article 1.0
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Author-Name: Seung-Jun Kwak
Author-X-Name-First: Seung-Jun
Author-X-Name-Last: Kwak
Author-Name: Tai-Yoo Kim
Author-X-Name-First: Tai-Yoo
Author-X-Name-Last: Kim
Title: Modelling willingness to pay responses from dichotomous choice contingent valuation surveys with zero observations
Abstract:
Modelling household behaviour with the data from dichotomous choice
contingent valuation (DCCV) surveys is often complicated by zero
willingness to pay (WTP) responses in the sample. To deal with the zero
responses, a two-equation model is considered, which incorporates a
two-level decision structure, a decision on whether to participate in
having WTP and a decision on the WTP amount conditional on deciding to
participate, and two separate stochastic processes that determine the
probability and conditional level of WTP are featured. The model is
empirically applied to household survey data, in which the DCCV questions
concerned the benefits of air quality improvement in Korea. To put the
issue of the two-equation model in perspective, this paper also
experiments with economic and econometric specifications: utility
theoretic restriction and heteroscedasticity. It is shown how failure to
allow for the restriction distorts aggregate benefit estimates and the
existence of heteroscedasticity in error term is found.
Journal: Applied Economics
Pages: 523-529
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122117
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122117
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:523-529
Template-Type: ReDIF-Article 1.0
Author-Name: Kausik Chaudhuri
Author-X-Name-First: Kausik
Author-X-Name-Last: Chaudhuri
Title: Long-run prices of primary commodities and oil prices
Abstract:
Acutely volatile movements in primary commodity prices have drawn
considerable interest from empirical researchers. Exports of these
commodities account for the bulk of export earnings of developing
countries. The traditional demand-based framework was unable to explain
the marked deterioration in these prices during the 1980s. This paper
tries to ascertain the role played by real oil prices in explaining the
extremely volatile movements in real prices of primary commodities by
taking into account oil price shocks over the period 1973-1996, using
monthly data. Real primary commodity prices and real oil prices are
cointegrated. Additionally, the error in the cointegrating relation
stimulates real commodity price adjustment, not real oil price adjustment.
Journal: Applied Economics
Pages: 531-538
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122106
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122106
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:531-538
Template-Type: ReDIF-Article 1.0
Author-Name: Rudi Vander Vennet
Author-X-Name-First: Rudi Vander
Author-X-Name-Last: Vennet
Title: The law of proportionate effect and OECD bank sectors
Abstract:
The paper investigates the growth dynamics of the bank sectors in the
OECD area over the period 1985-1994 and examines whether the structural
financial reforms of the late 1980s have affected their growth path. Based
on a test of Gibrat's law of proportionate effect, it is found that the
1985-89 period was characterized by size convergence, implying that
smaller bank sectors were expanding more rapidly. However, in the
1990-1994 period the pattern reversed to proportionate growth. The
analysis of the determinants of bank market growth reveals that
macroeconomic growth, operational bank efficiency, credit quality, and
capitalization are the main drivers of bank industry growth.
Journal: Applied Economics
Pages: 539-546
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122263
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122263
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:539-546
Template-Type: ReDIF-Article 1.0
Author-Name: Susmita Dasgupta
Author-X-Name-First: Susmita
Author-X-Name-Last: Dasgupta
Author-Name: Mainul Huq
Author-X-Name-First: Mainul
Author-X-Name-Last: Huq
Author-Name: David Wheeler
Author-X-Name-First: David
Author-X-Name-Last: Wheeler
Author-Name: Chonghua Zhang
Author-X-Name-First: Chonghua
Author-X-Name-Last: Zhang
Title: Water pollution abatement by Chinese industry: cost estimates and policy implications
Abstract:
Factory-level data are used to estimate water pollution abatement costs
for Chinese industry. Joint abatement cost functions are utilized which
relate total costs to treatment volume and the simultaneous effect of
reductions in suspended solids, chemical oxygen demand, biological oxygen
demand and other pollutants. Tests of alternative functional forms suggest
that a very simple (constant elasticity) model fits the data as well as a
complex (translog) model, permitting sophisticated policy experiments with
relatively simple calculations. From the results, the cost-effectiveness
of current pollution control policy in China is analysed. Basic
conclusions are (1) The benefits of stricter discharge standards should be
weighed carefully against the costs. For the sample of 260 factories, a
shift across the existing range of standards entails a present-value
difference of US$330 million in abatement costs. (2) Emissions charges as
low as US$1.00/ton would be sufficient to induce 80% abatement of
suspended solids for cost-minimizing factories. Charges of US$3, US$15 and
US$30 per ton would be sufficient to induce 90% abatement of TSS, COD and
BOD. (3) The current regulatory system provides an economic incentive to
abate by charging a levy on pollution in excess of the standard. However,
the results suggest that changing to a full emissions charge system would
greatly reduce overall abatement costs. For the 260 factories in the
sample, the current overall abatement rate could be attained under a
charge system at a reduced annual cost whose present value is US$344
million.
Journal: Applied Economics
Pages: 547-557
Issue: 4
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122068
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122068
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Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:547-557
Template-Type: ReDIF-Article 1.0
Author-Name: Ralph Bierlen
Author-X-Name-First: Ralph
Author-X-Name-Last: Bierlen
Author-Name: Bruce Dixon
Author-X-Name-First: Bruce
Author-X-Name-Last: Dixon
Author-Name: Bruce Ahrendsen
Author-X-Name-First: Bruce
Author-X-Name-Last: Ahrendsen
Title: Cattle cycles: is there a role for a financial accelerator?
Abstract:
The hypotheses that endogenous credit constraints based on fluctuating
asset values and cash flow prolong and accentuate US cattle cycles; and
that more diversified cow-calf firms are less affected by this phenomenon
are tested. Breeding cattle inventories are an interesting example to
study credit constraints because they are among the most cyclical of
economic time-series, firms have heterogeneous diversification levels, and
they avoid many of the problems with previous investment-cash flow
sensitivities studies noted by Kaplan and Zingales. The results are
consistent with earlier credit constraint studies, i.e. breeding cattle
inventories are sensitive to shifting credit constraint regimes and
cow-calf firms with higher diversification levels are less affected by
credit constraints.
Journal: Applied Economics
Pages: 559-568
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121697
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:559-568
Template-Type: ReDIF-Article 1.0
Author-Name: Dale Cloninger
Author-X-Name-First: Dale
Author-X-Name-Last: Cloninger
Author-Name: Roberto Marchesini
Author-X-Name-First: Roberto
Author-X-Name-Last: Marchesini
Title: Execution and deterrence: a quasi-controlled group experiment
Abstract:
Using portfolio analysis in a type of controlled group experiment, this
study develops an empirical model of homicide changes in Texas over a
period of a 'normal' number of executions. The empirically derived model
then estimates the changes in the number of homicides in Texas (1) over a
period of near zero executions and; (2) over an immediate subsequent
period of double the 'normal' number of executions. The actual changes in
Texas homicides over the first period is less than estimated by the model
and greater (or no different) than estimated by the model in the second
period. Because changes in the number of homicides in Texas and throughout
the United States were negative over both periods, these empirical results
are consistent with the deterrence hypothesis. That is, there were a
greater than predicted number of homicides in the first period and fewer
than predicted number in the second period.
Journal: Applied Economics
Pages: 569-576
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122871
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122871
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:569-576
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Title: How to deal with intercept and trend in practical cointegration analysis?
Abstract:
This note gives a few practical guidelines for cointegration analysis.
The focus is on testing the cointegration rank in a VAR model and on how
an intercept and a trend should be incorporated in the testing model. Only
two cases appear relevant for most economic data.
Journal: Applied Economics
Pages: 577-579
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121713
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121713
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:577-579
Template-Type: ReDIF-Article 1.0
Author-Name: Helmut Hofer
Author-X-Name-First: Helmut
Author-X-Name-Last: Hofer
Author-Name: Karl Pichelmann
Author-X-Name-First: Karl
Author-X-Name-Last: Pichelmann
Author-Name: Andreas-Ulrich Schuh
Author-X-Name-First: Andreas-Ulrich
Author-X-Name-Last: Schuh
Title: Price and quantity adjustments in the Austrian labour market
Abstract:
Austria is among the very few countries in the European Union which have
managed to maintain comparatively low unemployment rates and high
employment rates. This study looks at the price and quantity adjustment
mechanisms in the Austrian labour market which may have contributed to
this favourable outcome. After reviewing briefly the basic theoretical
reasoning an empirical investigation is began into gross flow dynamics in
the labour market and the cyclical volatility of employment and
unemployment in Austria. In international comparison Austrian unemployment
is very stable over the business cycle. This is due mainly to the high
sensitivity of the labour force on cyclical conditions and, partly, also
on the relatively weak responsiveness of employment to cyclical
fluctuations in output, the latter being possibly attributable to the high
degree of real wage flexibility in Austria. The study proceeds to show
that the long-run elasticity of wages with respect to unemployment is
indeed quite high in Austria. However, evidence was also found for
outsider effects in the Austrian wage setting process. Relative wage
structures, on the other hand, appear to be rather rigid.
Journal: Applied Economics
Pages: 581-592
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122962
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122962
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:581-592
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Cymrot
Author-X-Name-First: Donald
Author-X-Name-Last: Cymrot
Author-Name: James Dunlevy
Author-X-Name-First: James
Author-X-Name-Last: Dunlevy
Author-Name: William Even
Author-X-Name-First: William
Author-X-Name-Last: Even
Title: 'Who's on first': an empirical test of the Coase Theorem in baseball
Abstract:
Because of their highly developed skills, major league baseball players
generate significant economic rents. According to the 'weak version' of
the Coase theorem, the allocation of these players is independent of who
controls the rights to these rents, which depends on the rules governing
competition in the baseball labour market. The rules of Major League
Baseball establish a dual system. For senior players the market is
competitive, and players have the right of 'free agency,' allowing them to
attempt to contract with the team of their choice; for players with fewer
years of experience the market is monopsonistic, and a player's right to
play baseball is owned by his current team. Consequently, we
simultaneously observe two different allocations of property rights. Using
individual player data for 1979 and 1980 we test whether baseball player
movement is independent of the ownership of these rents. We estimate the
wage (marginal revenue) determination process for free-agent and non free
agent movers and non-movers. This permits us to generate expected gains
from a move for both free-agent eligible and non free-agent eligible
players. Coase's theorem is tested by determining if both player types,
and, hence, player allocation, are equally responsive to gains from
migration.
Journal: Applied Economics
Pages: 593-603
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122414
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122414
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:593-603
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Hinks
Author-X-Name-First: Timothy
Author-X-Name-Last: Hinks
Author-Name: Duncan Watson
Author-X-Name-First: Duncan
Author-X-Name-Last: Watson
Title: A multinomial logit nondiscriminatory approach to estimating racial wage and occupational discrimination
Abstract:
This paper combines a technique to measure nondiscriminatory wage
structures with a multinomial logit model to estimate both occupational
racial discrimination and within-occupation racial wage underpayment and
overpayment. Using a recent South African October Household Survey it is
found that racial discrimination against blacks and in favour of whites
still persists in the South African labour market, implying the
persistence of white employer nepotism and/or white employee
discrimination.
Journal: Applied Economics
Pages: 605-612
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122869
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:605-612
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Zaghini
Author-X-Name-First: Andrea
Author-X-Name-Last: Zaghini
Title: Fiscal adjustments and economic performing: a comparative study
Abstract:
The empirical relationship among fiscal contractions, permanent
improvement in public finances and short-run economic performance is
examined using a sample of 14 European countries over the last three
decades. The actual experience of policy-making has taught that only the
adjustments that relied heavily on primary expenditure cuts and were
implemented over a relatively long time span were able to achieve a long
lasting reduction of public liabilities. Indeed, during these
consolidations, tax increase amounted to a small fraction of the total
adjustment. Furthermore, though they unfolded over a longer period with
respect to the unsuccessful ones, the overall budget cut was not larger.
As regards the macroeconomic impact, successful episodes tended to be
associated with improved economic performance. During the adjustment
period and in the following two years, the economies experienced strong
consumption and investment growth, reduced unemployment, better
international competitiveness and falling interest rates. This empirical
evidence is here interpreted via the theory known as expectation view of
fiscal policy.
Journal: Applied Economics
Pages: 613-624
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122700
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122700
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:613-624
Template-Type: ReDIF-Article 1.0
Author-Name: Vinish Kathuria
Author-X-Name-First: Vinish
Author-X-Name-Last: Kathuria
Title: Foreign firms, technology transfer and knowledge spillovers to Indian manufacturing firms: a stochastic frontier analysis
Abstract:
This paper uses techniques from a stochastic production frontier (i.e.,
the best practice technology used in the industry vis-a-vis average
practised technology) and panel data literature to test for the spillover
hypothesis that 'presence of foreign-owned firms and disembodied
technology import in a sector leads to higher productivity growth for
domestic firms'. The study uses panel data for 368 medium and largesized
Indian manufacturing firms for the period 1975-1976 to 1988-1989. The
results indicate that there exists positive spillovers from the presence
of foreign-owned firms but the nature and type of spillovers vary
depending upon the industries to which the firms' belong. There exist
significant positive spillovers for the domestic firms belonging to the
'scientific' subgroup provided the firms themselves possess significant
R&D capabilities. However, for the 'non-scientific' subgroup presence of
foreign firms itself forces the local firms to be more productive by
inducing greater competition. However, the results change marginally when
the initial level of productivity (i.e. the technology-gap) is considered.
Journal: Applied Economics
Pages: 625-642
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121940
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121940
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:625-642
Template-Type: ReDIF-Article 1.0
Author-Name: Ulf-G. Gerdtham
Author-X-Name-First: Ulf-G.
Author-X-Name-Last: Gerdtham
Author-Name: Mickael Lothgren
Author-X-Name-First: Mickael
Author-X-Name-Last: Lothgren
Title: Health system effects on cost efficiency in the OECD countries
Abstract:
This paper investigates the effects of different health systems on cost
efficiency in inpatient health care among the OECD countries. The results
indicate that public contract systems are more efficient and that public
integrated systems are less efficient than public reimbursement systems.
Journal: Applied Economics
Pages: 643-647
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121897
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121897
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:643-647
Template-Type: ReDIF-Article 1.0
Author-Name: Michael McPherson
Author-X-Name-First: Michael
Author-X-Name-Last: McPherson
Author-Name: Michael Redfearn
Author-X-Name-First: Michael
Author-X-Name-Last: Redfearn
Author-Name: Margie Tieslau
Author-X-Name-First: Margie
Author-X-Name-Last: Tieslau
Title: International trade and developing countries: an empirical investigation of the Linder hypothesis
Abstract:
This paper presents empirical evidence in support of the Linder
hypothesis for five of the six East African developing countries studied
here: Ethiopia, Kenya, Rwanda, Sudan and Uganda. This finding implies that
these countries trade more intensively with others who have similar per
capita income levels, as predicted by Linder. The contributions of this
research are three-fold. First, new information is provided on the Linder
hypothesis by focusing on developing countries. Second, this is one of
very few analyses to capture both time-series and cross-section elements
of the trade relationship by employing a panel data set. Third, the
empirical methodology used in the analysis corrects a major shortcoming in
the existing literature by using a censored dependent variable in
estimation.
Journal: Applied Economics
Pages: 649-657
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122575
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122575
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:649-657
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Curry
Author-X-Name-First: Bruce
Author-X-Name-Last: Curry
Author-Name: Peter Morgan
Author-X-Name-First: Peter
Author-X-Name-Last: Morgan
Author-Name: Mick Silver
Author-X-Name-First: Mick
Author-X-Name-Last: Silver
Title: Hedonic regressions: mis-specification and neural networks
Abstract:
There is an emerging literature in the field of hedonic regressions which
successfully applies flexible functional forms. In contrast, numerous
authors report hedonic regressions with relatively simple functions, often
with little or no attempt to consider interaction terms and higher level
powers. Such simple functions perform relatively well in spite of good a
priori grounds for quite complex interaction effects. Indeed, the studies
are characterised by a general indifference to testing these more flexible
models, even when degrees of freedom permit. Using detailed scanner data,
hedonic functions for the UK TV market are estimated and tested for
interaction effects. For a case study of the market, higher level
interaction effects are tested for and compare the results with those from
a neural network, with its property of 'universal approximation'. The use
of neural networks is particularly novel in this context and some general
findings on their suitability emerge.
Journal: Applied Economics
Pages: 659-671
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122335
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122335
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:659-671
Template-Type: ReDIF-Article 1.0
Author-Name: Johan Lyhagen
Author-X-Name-First: Johan
Author-X-Name-Last: Lyhagen
Title: The effect of precautionary saving on consumption in Sweden
Abstract:
Uncertainty concerning future income lowers consumption. This is often
called the precautionary demand for savings. In this paper the existence
of precautionary savings. In this paper the existence of precautionary
saving is investigated using Swedish data for the years 1973-1992. As
there are no variables for consumers' uncertainty a proxy is used.
Assuming an underlying distribution of attitudinal data, a variance series
is derived. Including the proxy in different specifications of the
consumption function, indication of precautionary saving can be found. As
a result, no uncertainty would raise consumption by 4.9%.
Journal: Applied Economics
Pages: 673-681
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122493
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122493
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:673-681
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Costa
Author-X-Name-First: Antonio
Author-X-Name-Last: Costa
Author-Name: Nuno Crato
Author-X-Name-First: Nuno
Author-X-Name-Last: Crato
Title: Long-run versus short-run behaviour of the real exchange rates
Abstract:
This paper discusses the mean stationarity of real exchange rates by
using new time series methods and new tests. The question whether the real
exchange rates have a unit root or are level reverting is set in the
general and flexible framework of fractionally integrated processes. The
estimations and tests sustain the claim that real exchange rates may be
nonstationary and not revert to any short-run parity. However, estimations
also suggest that real exchange rates behave differently on the short and
on the long run and that they may revert to parity in a century-long
period.
Journal: Applied Economics
Pages: 683-688
Issue: 5
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122409
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122409
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Handle: RePEc:taf:applec:v:33:y:2001:i:5:p:683-688
Template-Type: ReDIF-Article 1.0
Author-Name: Teame Ghirmay
Author-X-Name-First: Teame
Author-X-Name-Last: Ghirmay
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Author-Name: Subhash Sharma
Author-X-Name-First: Subhash
Author-X-Name-Last: Sharma
Title: Exports, investment, efficiency and economic growth in LDC: an empirical investigation
Abstract:
This study seeks to analyse the relationship between exports and growth
for 19 less-developed countries. It utilizes multivariate causality
analysis based on the error correction model to address several important
hypotheses. The results indicate that when exports have a causal influence
in the development process that in general this is the result of their
effect on both efficiency and accumulation. In addition, improvements in
output and capital accumulation in an economy seem to have just as much of
an influence on exports as exports have on output and capital
accumulation. Finally, the growth process in East Asia seems to be quite
different from that in Southeast Asia.
Journal: Applied Economics
Pages: 689-700
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122027
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:689-700
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick McCarthy
Author-X-Name-First: Patrick
Author-X-Name-Last: McCarthy
Author-Name: Wayne Talley
Author-X-Name-First: Wayne
Author-X-Name-Last: Talley
Title: Safety investments, behaviours and injury severity
Abstract:
This study investigates whether recreational boating safety investments
and behaviours of current interest are determinants of boating injury
severity, and if so, their effects. An ordered probit analysis of
1989-1993 boating accidents suggests that human capital investments in
safety, in the form of operator boating experience and formal instruction,
reduce both operator and passenger injury severity. Higher levels of
operator (passenger) alcohol consumption increase operator (passenger)
injury severity, but no relationship was found between operator alcohol
consumption and passenger injury severity. At the time a trip is taken,
wearing a flotation device has the most efficacious effect on both
operator and passenger injury severity. In general, the results support
regulatory policies aimed at increasing the use of personal flotation
devices as well as reducing alcohol consumption.
Journal: Applied Economics
Pages: 701-710
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121835
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121835
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:701-710
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Brooks
Author-X-Name-First: Chris
Author-X-Name-Last: Brooks
Author-Name: Sotiris Tsolacos
Author-X-Name-First: Sotiris
Author-X-Name-Last: Tsolacos
Title: Linkages between property asset returns and interest rates: evidence for the UK
Abstract:
This paper considers the effect of short- and long-term interest rates,
and interest rate spreads upon real estate index returns in the UK. Using
Johansen's vector autoregressive framework, it is found that the real
estate index cointegrates with the term spread, but not with the short or
long rates themselves. Granger causality tests indicate that movements in
short term interest rates and the spread cause movements in the returns
series. However, decomposition of the forecast error variances from VAR
models indicate that changes in these variables can only explain a small
proportion of the overall variability of the returns, and that the effect
has fully worked through after two months. The results suggest that these
financial variables could potentially be used as leading indicators for
real estate markets, with corresponding implications for return
predictability.
Journal: Applied Economics
Pages: 711-719
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122812
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122812
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:711-719
Template-Type: ReDIF-Article 1.0
Author-Name: Sucharita Ghosh
Author-X-Name-First: Sucharita
Author-X-Name-Last: Ghosh
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Title: Forecasting with preliminary data: a comparison of two methods
Abstract:
This study examines two alternate methods, a vector autoregression error
correction model and a state space model, to forecast revised United
States trade balance figures. Both these methods incorporate preliminary
and revised trade data. The results obtained from these methods were
compared to the benchmark forecasts generated by revised-data-only models.
This Study finds that the state space model performs worse than the
benchmark. The vector autoregression model performs better than the
benchmark only in the one-step forecast. These results indicate that
incorporating preliminary data may not be useful in forecasting the
revised data.
Journal: Applied Economics
Pages: 721-726
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122370
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122370
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:721-726
Template-Type: ReDIF-Article 1.0
Author-Name: Pushkar Maitra
Author-X-Name-First: Pushkar
Author-X-Name-Last: Maitra
Title: Is consumption smooth at the cost of volatile leisure? An investigation of rural India
Abstract:
This study examines the institutions in rural India that enable
households to insure against unanticipated idiosyncratic shocks to income.
Using a decentralized general equilibrium model it tests for consumption
and leisure insurance against unanticipated income shocks. It is found
that differential access to markets (particularly financial markets) force
villagers to differ in their response to similar shocks. Medium and large
farmers have unrestricted access to credit markets and are unaffected by
unanticipated changes in household income. The small farmers are excluded
from credit markets. However, some of the small farmers are able to insure
consumption against unanticipated income shocks through compensating
changes in labour market participation and reducing own farm work.
Journal: Applied Economics
Pages: 727-734
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122570
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122570
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:727-734
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Dirk Vlasblom
Author-X-Name-First: Jan Dirk
Author-X-Name-Last: Vlasblom
Author-Name: Peter De Gijsel
Author-X-Name-First: Peter
Author-X-Name-Last: De Gijsel
Author-Name: Jacques Siegers
Author-X-Name-First: Jacques
Author-X-Name-Last: Siegers
Title: Taxes, female labour supply and household income: differences between the Netherlands and the Federal Republic of Germany
Abstract:
The article investigates the effect of taxes and social premiums on
female labour supply and household income. A comparison is made between
labour supply and household income between the Netherlands and the Federal
Republic of Germany in 1992. A discrete choice model for labour supply is
used in which taxes and social premiums are implicitly incorporated. As
male labour supply is highly inelastic an individual, male chauvinist
model is used. The estimated models are used to simulate the effect of the
differences in the tax and social premium system on the differences in
labour supply and income between both countries. The results indicate that
labour force participation is higher the more individualized the system.
The German system leads to a lower tax burden compared to the Dutch
system. It is concluded that differences in the tax and social premium
system between both countries have hardly any influence on the differences
in the inequality of net household labour income. There is evidence that
the German system leads to a slightly more unequal distribution of
household income. It is also concluded that although the tax and social
premium system does influence labour supply and income, it can be doubted
whether these effects are substantial.
Journal: Applied Economics
Pages: 735-744
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121832
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121832
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:735-744
Template-Type: ReDIF-Article 1.0
Author-Name: Robyn Swift
Author-X-Name-First: Robyn
Author-X-Name-Last: Swift
Title: Exchange rates and commodity prices: the case of Australian metal exports
Abstract:
Exporters of homogeneous commodities are usually regarded as 'price
takers' who operate in perfectly competitive international markets, so
that the pass-through of exchange rate changes to foreign-currency prices
must be zero. However, many Australian commodities are subject to
influences that may produce more complex pricing strategies, for example,
markets in which Australia is a dominant exporter, or where there are few
buyers and sellers due to the presence of large multi-national
corporations. This study uses multivariate cointegration techniques to
examine the pricing of Australian metal exports, with particular emphasis
on the degree and timing of the pass-through of exchange rate and other
changes.
Journal: Applied Economics
Pages: 745-753
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122525
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122525
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:745-753
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Ryan
Author-X-Name-First: Michael
Author-X-Name-Last: Ryan
Title: Variance analysis, normed costs and public safety organizations
Abstract:
This study recognizes that public safety organizations, including
military units and fire services as well as the police, will normally be
budget constrained. It also recognizes that subunits of these
organizations will not always be employed in their highest priority
activities. With those perspectives the study shows how such organizations
can optimally redistribute resources and reallocations of activities
between units in response to variable demands simultaneously with the
determination of optimizing norms for levels and costs of activities and
for transfers of resources and activities between units. The study draws
on the ideas of variance analysis from accounting and peak load pricing
and duality from economics to derive optimizing levels of activity for
subunits within an organization in response to varying demands on the
resources and performance of the organization as a whole. It also provides
a critique of the standard data envelopment analysis aproach to activity
analysis on the grounds not only that that approach is not cost related,
but also that it does not provide for the endogenous transfer of
activities and resources between units.
Journal: Applied Economics
Pages: 755-762
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121862
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121862
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:755-762
Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Florkowski
Author-X-Name-First: Wojciech
Author-X-Name-Last: Florkowski
Author-Name: Timothy Park
Author-X-Name-First: Timothy
Author-X-Name-Last: Park
Title: Promotional programmes and consumer purchasing decisions: pecan demand models
Abstract:
A generalized Heckman model of purchase decisions is estimated
incorporating perceived consumer quality attributes, ease of purchase, and
familiarity with marketing outlets as factors influencing pecan purchases.
Economic implications for evaluating consumer purchase decisions and the
design of commodity promotion programmes for the pecan industry are
addressed. Key marketing variables such as the variety of uses for nut
products, the number of outlets used to purchase pecans, and consumer
perceptions of positive quality features of pecans are significant in
promoting purchases. Applications of a trade-off analysis examine key
variables considered by the pecan industry in developing promotional
programmes both to stabilize pecan purchases and to maintain the
probability of pecan purchases.
Journal: Applied Economics
Pages: 763-770
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840151135319
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840151135319
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:763-770
Template-Type: ReDIF-Article 1.0
Author-Name: Julian Ramajo
Author-X-Name-First: Julian
Author-X-Name-Last: Ramajo
Title: Time-varying parameter error correction models: the demand for money in Venezuela, 1983.I-1994.IV
Abstract:
The possibility of using time-varying parameter models in the context of
error correction models is studied empirically. As an application, a money
demand relationship (M1) for Venezuela is estimated from 1983 to 1994
within a cointegrated VAR framework. First, the stochastic properties of
the series are analysed, studying each corresponding order of integration.
Second, the existence of a long-run stable relation between the variables
involved has been investigated, and then the cointegration relation and
the short-run adjustment mechanism estimated. As both relations are
identified in the context of constant parameters a stability analysis is
performed. Finally, the technique of Kalman filtering is used to estimate
a model that permits the short-run parameters to vary, while the
parameters of the long-run relation are kept constant.
Journal: Applied Economics
Pages: 771-782
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122141
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122141
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:771-782
Template-Type: ReDIF-Article 1.0
Author-Name: Yasuo Nakanishi
Author-X-Name-First: Yasuo
Author-X-Name-Last: Nakanishi
Title: Dynamic labour demand using error correction model
Abstract:
Using a new econometric model, this study provides evidence that
contradicts previous assertions about the Japanese labour market. The
interrelationship between employment and hours of labour is stressed in
this analysis by explicitly dividing labour input into both employment and
labour hours. This model enables results to be obtained through both
simulation and estimation, which allow measurement of adjustment speeds
and elasticity in both employment and labour hours to wages. The results
of the simulations are as follows. No apparent difference in adjustment
speeds between employment and hours of labour was found. The adjustment of
hours of labour is more cyclical and overshoots whereas that of employment
is smoother. The adjustment speed of each simulation is slower than that
found in most previous studies in the present long-run simulation. It is
not as slow in the short-run and policy simulations. Therefore, adjustment
speeds strongly depend on the method of simulation.
Journal: Applied Economics
Pages: 783-790
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121883
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121883
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:783-790
Template-Type: ReDIF-Article 1.0
Author-Name: Miki Kohara
Author-X-Name-First: Miki
Author-X-Name-Last: Kohara
Title: Consumption insurance between Japanese households
Abstract:
This paper examines the implication of the full insurance hypothesis and
differences in its applicability across groups of households in Japan.
Using a rare Japanese individual panel data set called the Japanese Panel
Survey of Consumption, the paper first shows that the full insurance
hypothesis is strongly rejected for the country as a whole. The paper
further shows that the rich as well as the poor, and also college
graduates as well as non-college graduates cannot insure their consumption
against income shocks. In sharp contrast, urban residents can pool income
shocks completely, whereas rural residents cannot. Rural residents suffer
from income risks more seriously than urban residents in Japan.
Journal: Applied Economics
Pages: 791-800
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121946
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121946
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:791-800
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Bazen
Author-X-Name-First: Stephen
Author-X-Name-Last: Bazen
Author-Name: Jean-Marie Cardebat
Author-X-Name-First: Jean-Marie
Author-X-Name-Last: Cardebat
Title: The impact of trade on the relative wages and employment of low skill workers in France
Abstract:
The impact of international trade on labour markets in developed
countries will be different according to the degree of competition in
product markets, the flexibility of the labour market and the skill
intensity of production. An econometric analysis of the impact of trade in
France has been undertaken using sectoral data for the period 1985-p1992.
It is found that lower relative import prices reduce the relative
employment of low skill workers in the first half the period and reduce
their relative wages in the second half. In both cases the effect is more
pronounced in sectors where the skill intensity of production is initially
low.
Journal: Applied Economics
Pages: 801-810
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122774
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122774
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:801-810
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Graham
Author-X-Name-First: Daniel
Author-X-Name-Last: Graham
Title: Productivity growth in British manufacturing: spatial variation in the role of scale economies, technological growth and industrial structure
Abstract:
This paper investigates the role of scale economies, technological growth
and industrial structure in creating spatial variation in manufacturing
labour and Total Factor (TFP) productivity in Britain. Separate estimates
of a translog specification are presented for British manufacturing firms
located in defined areas of the country over the period 1994-1998. The
results show that TFP change due to scale economies and technological
growth has been of much less important in influencing the output growth of
manufacturing firms than input growth or industrial structure. Regarding
the components of TFP, technological growth has been the dominant force at
play. The analysis of average labour productivity identifies shifts to
other factors of production and industrial structure as being the main
determinants of change, scale economies appear to have had a marginal
role. The results identify spatial patterns indicating that more
favourable locational effects arise for firms in areas adjacent to large
urban centres, rather than for those located within cities, on the extreme
periphery of the urban hinterland, or in rural areas and smaller towns.
Journal: Applied Economics
Pages: 811-821
Issue: 6
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122333
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122333
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Handle: RePEc:taf:applec:v:33:y:2001:i:6:p:811-821
Template-Type: ReDIF-Article 1.0
Author-Name: Hong Yih Chu
Author-X-Name-First: Hong Yih
Author-X-Name-Last: Chu
Title: The optimal supply of public goods in collective choice
Abstract:
The aim of this paper is to provide an appropriate method to estimate the
elasticity of demand that is to be used to calculate the benefit share
which is used for calculating the benefit-burden ratio for median voters
and to investigate whether the present tax system leads to an efficient
level of public sector output. In addition, the redistribution effects of
the current tax system will also be discussed. The degree of bias when the
environmental factor was not included in the production function is also
considered.
Journal: Applied Economics
Pages: 823-827
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122458
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122458
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:823-827
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Piazolo
Author-X-Name-First: Daniel
Author-X-Name-Last: Piazolo
Title: Investment behaviour in transition countries and computable general equilibrium models
Abstract:
When applying Computable General Equilibrium (CGE) models to transition
economies, it is not plausible to use the standard assumption that the
base year data represent stable structural characteristics or even the
steady state of the economy. The suggestions forwarded until now to
overcome this problem are discussed in this article. An amendment is
proposed by modifying the investment modelling within the dynamic CGE
setting. The standard formulation of installation costs for capital is
extended through the inclusion of adjustment costs that depend on the
change of the investment level. Such formulation of the adjustment costs
within the dynamic CGE model leads to an investment behaviour that mirrors
the empirical data of the first years of the transition.
Journal: Applied Economics
Pages: 829-837
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121922
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121922
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:829-837
Template-Type: ReDIF-Article 1.0
Author-Name: Jan-Egbert Sturm
Author-X-Name-First: Jan-Egbert
Author-X-Name-Last: Sturm
Author-Name: Jakob De Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: De Haan
Title: How robust is the relationship between economic freedom and economic growth?
Abstract:
Using various indicators for economic freedom, it is shown that increases
in economic freedom are robustly related to economic growth. This
conclusion holds even if the impact of outlying observations is taken into
account. The level of economic freedom is not related to growth.
Journal: Applied Economics
Pages: 839-844
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121977
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121977
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:839-844
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Kenkel
Author-X-Name-First: Donald
Author-X-Name-Last: Kenkel
Author-Name: Steven Koch
Author-X-Name-First: Steven
Author-X-Name-Last: Koch
Title: Deterrence and knowledge of the law: The case of drunk driving
Abstract:
During the past decade, hundreds of new state laws have increased the
certainty, severity and swiftness of punishment for drunk driving. These
new laws can deter drunk driving only to the extent people know about
them. In this empirical paper the role incomplete information plays in an
econometric model of drunk driving deterrence is explored. Little evidence
is found that people know the applicable laws in their states. However,
some evidence of rational behaviour is found given their lack of knowledge
of these laws. It is difficult to reconcile these results with studies
that have found drunk driving deterrence effects of more severe penalties,
more certain penalties, or even swifter penalties.
Journal: Applied Economics
Pages: 845-854
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122060
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122060
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:845-854
Template-Type: ReDIF-Article 1.0
Author-Name: Li-Hsueh Chen
Author-X-Name-First: Li-Hsueh
Author-X-Name-Last: Chen
Title: Inflation and real short-term interest rates - A Kalman filter analysis of the term structure
Abstract:
This paper applies the Kalman filter technique to look at the
relationship among real interest rates, inflation, and the term structure
of interest rate under the expectations hypothesis. Using quarterly data
from 1960:1 to 1991:1 for inflation, three month nominal short term
interest rates and long term yields with maturities from one to five
years, this paper finds that the expectations hypothesis of the term
structure holds up well for the data under the assumptions of a
time-varying premium and a random-walk real interest rate. In other words,
a reconciliation of the expectations hypothesis with the data is attained
by assuming time-varying term premium and non-stationary real interest
rate.
Journal: Applied Economics
Pages: 855-861
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122550
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122550
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:855-861
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Delorme
Author-X-Name-First: Charles
Author-X-Name-Last: Delorme
Author-Name: David Kamerschen
Author-X-Name-First: David
Author-X-Name-Last: Kamerschen
Author-Name: Lisa Ford Voeks
Author-X-Name-First: Lisa Ford
Author-X-Name-Last: Voeks
Title: Consumer confidence and rational expectations in the United States compared with the United Kingdom
Abstract:
This paper examines the relationship between consumer confidence and the
Rational Expectations Permanent Income Hypothesis in the USA and compares
the results with those obtained for the UK. The study expands previous
analysis by defining consumption as motor vehicles, goods excluding motor
vehicles, and services. The results suggest that predictive ability of the
USA's consumer confidence is less than that of the UK, but that contrary
to the UK study, confidence does not predict future consumption growth of
services and is therefore consistent with Rational Expectations Permanent
Income Hypothesis.
Journal: Applied Economics
Pages: 863-869
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122192
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122192
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:863-869
Template-Type: ReDIF-Article 1.0
Author-Name: R. J. Bennett
Author-X-Name-First: R. J.
Author-X-Name-Last: Bennett
Author-Name: P. J. A. Robson
Author-X-Name-First: P. J. A.
Author-X-Name-Last: Robson
Author-Name: W. J. A. Bratton
Author-X-Name-First: W. J. A.
Author-X-Name-Last: Bratton
Title: Government advice networks for SMEs: an assessment of the influence of local context on Business Link use, impact and satisfaction
Abstract:
Business Link in Britain is one of the main recent government initiatives
to support SMEs in the EU. The paper uses a 1997 survey of SMEs to
determine how Business Link use, impact and satisfaction are influenced by
firm characteristics, local partnership characteristics, local
geographical context, service intensity and other explanatory variables.
The paper presents econometric estimates based on logit and ordered logit
models. A key finding of the paper is to demonstrate that local context is
not very significant to service use, impact or satisfaction, but local
Business Link management and adviser performance are important influences
on the impact and satisfaction. Major differences in the way SMEs use
government-backed services are also found. There are high volumes of use
of 'gateway' information services producing only low impact, and low
volumes but high impacts and satisfaction with intensive advice services
governed by contracts between the clients and the adviser. Implications
for the Small Business Service, launched in April 2000, are drawn.
Journal: Applied Economics
Pages: 871-885
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121626
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121626
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:871-885
Template-Type: ReDIF-Article 1.0
Author-Name: Joaquim Pinto De Andrade
Author-X-Name-First: Joaquim Pinto
Author-X-Name-Last: De Andrade
Author-Name: Joseangelo Divino
Author-X-Name-First: Joseangelo
Author-X-Name-Last: Divino
Title: Currency crises in Brazil: the role of the fundamentals and the rumours
Abstract:
The paper aims at identification of the main explanatory factors of the
currency crises in Brazil. Following Choueiri and Kaminsky (1997) a VAR
monetary model is used and the historical decomposition procedure
developed by Sims (1980) to evaluate the importance of the 'fundamentals'
represented by fiscal/monetary and exchange-rate policies, and the
'external factors' represented by foreign interest rates and contagious
effects. The main results show the importance of the exchange-rate
management on the overall period and the contagious effects more recently
to explain the Brazilian currency crises.
Journal: Applied Economics
Pages: 887-898
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121646
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121646
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:887-898
Template-Type: ReDIF-Article 1.0
Author-Name: Clive Granger
Author-X-Name-First: Clive
Author-X-Name-Last: Granger
Author-Name: Namwon Hyung
Author-X-Name-First: Namwon
Author-X-Name-Last: Hyung
Author-Name: Yongil Jeon
Author-X-Name-First: Yongil
Author-X-Name-Last: Jeon
Title: Spurious regressions with stationary series
Abstract:
A spurious regression occurs when a pair of independent series, but with
strong temporal properties, are found apparently to be related according
to standard inference in an OLS regression. Although this is well known to
occur with pairs of independent unit root processes, this paper finds
evidence that similar results are found with positively autocorrelated
autoregressive series or long moving averages. This occurs regardless of
the sample size and for various distributions of the error terms.
Journal: Applied Economics
Pages: 899-904
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121734
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121734
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:899-904
Template-Type: ReDIF-Article 1.0
Author-Name: Wenshwo Fang
Author-X-Name-First: Wenshwo
Author-X-Name-Last: Fang
Title: Stock return process and expected depreciation over the Asian financial crisis
Abstract:
The Asian financial crisis has been characterized by unstable stock and
foreign exchange markets in Asia since July 1997. This paper postulates
that expected depreciation helps to predict stock market volatility over
the turmoil period. Using Taiwan daily data as an example, the estimated
ARCH(3)-M model documents significantly a negative depreciation effect
with no heteroscedasticity in the stock return process, suggesting that
the expected depreciation is a cause of the changing variance. The
evidence further shows that the stock market volatility has increased
during the period of the Asian financial crisis 1997-1998, but the
corresponding time-varying risk premium has remained unchanged.
Journal: Applied Economics
Pages: 905-912
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122487
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122487
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:905-912
Template-Type: ReDIF-Article 1.0
Author-Name: J. F. Nolan
Author-X-Name-First: J. F.
Author-X-Name-Last: Nolan
Author-Name: P. C. Ritchie
Author-X-Name-First: P. C.
Author-X-Name-Last: Ritchie
Author-Name: J. R. Rowcroft
Author-X-Name-First: J. R.
Author-X-Name-Last: Rowcroft
Title: Measuring efficiency in the public sector using nonparametric frontier estimators: a study of transit agencies in the USA
Abstract:
Transit agencies in the USA must provide service under increasing
operating constraints. Using data from 1989-1993, technical efficiency
among these firms is estimated and characteristics indicative of
differential efficiency in transit agencies are identified. This paper
verifies the robustness of the second step regression results to the
choice of efficiency measure by comparing results of the two step
regressions using a pair of non-parametric efficiency estimators. It is
discovered that the structure of government subsidy to this industry
negatively affects not just cost efficiency, but technical efficiency as
well. Furthermore, maintenance appears to be an important component of
operational efficiency in this industry.
Journal: Applied Economics
Pages: 913-922
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122663
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122663
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:913-922
Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yil Choi
Author-X-Name-First: Yong-Yil
Author-X-Name-Last: Choi
Title: Aggregate debt efficiency and debt inertia: lessons from the Korean economy
Abstract:
This paper investigates the link between aggregate debt efficiency and
debt inertia in an highly leveraged business sector like Korea's. The
model designs the concepts of liquidity multiplier and debt inertia to
argue that they are two major indicators of aggregate debt efficiency. The
empirical assessment to the Korean business sector indicates that the
aggregate debt efficiency depends mainly on externalities of the debt
inertia rather than liquidity creation due to the liquidity multiplier.
The economic crisis of Korea in 1997 proves that such a debt efficiency
structure must be vulnerable to attack.
Journal: Applied Economics
Pages: 923-927
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121666
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121666
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:923-927
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Kidd
Author-X-Name-First: Michael
Author-X-Name-Last: Kidd
Author-Name: Michael Shannon
Author-X-Name-First: Michael
Author-X-Name-Last: Shannon
Title: Convergence in the gender wage gap in Australia over the 1980s: identifying the role of counteracting forces via the Juhn, Murphy and Pierce Decomposition
Abstract:
The paper utilises the Juhn Murphy and Pierce (1991) decomposition to
shed light on the pattern of slow male-female wage convergance in
Australia over the 1980s. The analysis allows one to distinguish between
the role of wage structure and genderspecific effects. The central
question addressed is whether rising wage inequality counteracted the
forces of increased female investment in labour market skills, i.e.
education and experience. The conclusion is that in contrast to the US and
the UK, Australian women do not appear to have been swimming against a
tide of adverse wage structure changes.
Journal: Applied Economics
Pages: 929-936
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121991
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121991
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:929-936
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Miles
Author-X-Name-First: Daniel
Author-X-Name-Last: Miles
Title: Joint purchasing decisions: a multivariate negative binomial approach
Abstract:
The analysis of household purchasing decisions for understanding
consumption behaviour has received much attention recently, mainly because
of the measurement error problems that appear when using expenditure data
to approximate consumption. This paper discusses some empirical
regularities of the household purchasing behaviour based on information
about the number of purchases a household has declared having done during
the survey period. The concern of this paper is two-fold. First, to show
how to recover purchase frequency data from the Spanish Budget Survey
(1990-1991). Second, to discuss some empirical regularities of the joint
purchasing decisions based on multivariate negative binomial models.
Journal: Applied Economics
Pages: 937-946
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121660
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121660
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:937-946
Template-Type: ReDIF-Article 1.0
Author-Name: J. C. H. Jones
Author-X-Name-First: J. C. H.
Author-X-Name-Last: Jones
Author-Name: Tanya Potashnik
Author-X-Name-First: Tanya
Author-X-Name-Last: Potashnik
Author-Name: Anming Zhang
Author-X-Name-First: Anming
Author-X-Name-Last: Zhang
Title: Patents, brand-generic competition and the pricing of ethical drugs in Canada: some empirical evidence from British Columbia, 1981-1994
Abstract:
This paper examines the impact of the 1987 changes in the Canadian Patent
Act on the pricing of ethical drugs. From 1969 to 1987 Canada opted to
control pharmaceutical prices by using the compulsory licensing provisions
of the Act to promote competition between branded drugs and their generic
equivalents. In 1987, however, the Act was amended to guarantee patent
holders an extended period (7-10 years) of protection. This reduced
brand-generic competition by retarding generic entry and suggests that,
ceteris paribus, after 1987 pharmaceutical prices increased relative to
pre-1987 prices. This hypothesis is examined for the period 1981-1994
using a sample of 82 drugs from the British Columbia Pharmacare Programme.
The major conclusions are: despite evidence of significant first mover
advantages which resulted in higher brand prices, competition from
generics succeeded in reducing overall market prices prior to 1987; but,
after 1987, the efficacy of generic competition was reduced and both brand
and market prices increased.
Journal: Applied Economics
Pages: 947-956
Issue: 7
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121705
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121705
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Handle: RePEc:taf:applec:v:33:y:2001:i:7:p:947-956
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements
Author-X-Name-First: Kenneth
Author-X-Name-Last: Clements
Author-Name: Wana Yang
Author-X-Name-First: Wana
Author-X-Name-Last: Yang
Author-Name: Dongling Chen
Author-X-Name-First: Dongling
Author-X-Name-Last: Chen
Title: The matrix approach to evaluating demand equations
Abstract:
As there is a plethora of demand models, which one should be used to
estimate income and price elasticities? The paper sheds light on this
important practical problem by developing a matrix approach to simulating
(MAS) demand equations to analyse their performance under idealized
circumstances. Artificial data on the dependent variable are generated by
one model, and these are then used for the estimation of another model. As
an illustrative application, using four popular models, a 4 × 4
matrix is generated which gives all pair-wise comparisons. The performance
of the models is then evaluated on the basis of the quality of the income
and own-price elasticity estimates.
Journal: Applied Economics
Pages: 957-967
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122972
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122972
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:957-967
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Robbins
Author-X-Name-First: Mark
Author-X-Name-Last: Robbins
Author-Name: Peter Kennedy
Author-X-Name-First: Peter
Author-X-Name-Last: Kennedy
Title: Buyer behaviour in a regional thoroughbred yearling market
Abstract:
This paper reports the results of an hedonic pricing analysis of a
regional thoroughbred auction market, adding to a literature which has
been built mainly on data from elite auction markets. The main
contribution of the paper is the finding that the role of the dam in
affecting yearling price, elusive in the existing literature, is shown to
depend primarily on information about progeny performance rather than dam
performance. Additional results confirm existing knowledge about the roles
of the sire, yearling sex, and yearling age, and support suspicions that
race horses are consumer rather than investment goods.
Journal: Applied Economics
Pages: 969-977
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010002529
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010002529
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:969-977
Template-Type: ReDIF-Article 1.0
Author-Name: Haukur Benediktsson
Author-X-Name-First: Haukur
Author-X-Name-Last: Benediktsson
Author-Name: Tryggvi Thor Herbertsson
Author-X-Name-First: Tryggvi Thor
Author-X-Name-Last: Herbertsson
Author-Name: J. Michael Orszag
Author-X-Name-First: J. Michael
Author-X-Name-Last: Orszag
Title: The charge ratio on individual accounts and investment plans in Iceland
Abstract:
This paper documents the lifetime costs on individual accounts and
investment plans for a typical worker in Iceland using typical wage
profiles and information on current charges obtained from the providers.
The charge ratios calculated imply that costs at a current cost basis on
individual accounts are substantially lower in Iceland than for personal
pensions in the UK and retail charges for individual pension accounts in
other countries. The Icelandic charges are substantially lower than would
ordinarily be expected in an emerging defined contribution market and
given the low contribution rates associated with the Icelandic accounts.
These low charges are attributed to a variety of factors including: low
levels of regulation, competition for business between traditional
financial institutions and workers' main pension funds and the perception
of a growing market.
Journal: Applied Economics
Pages: 979-987
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121719
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121719
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:979-987
Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Buch
Author-X-Name-First: Claudia
Author-X-Name-Last: Buch
Title: Money demand in Hungary and Poland
Abstract:
This paper analyses the determinants and the stability of money demand
functions in Hungary and Poland, using an error-correction framework. The
null of stable cointegration relationships cannot be rejected in some
specifications. The results suggest that long-run parameters are in line
with economic theory. While judging the appropriateness of different
strategies of monetary policy on the basis of these findings alone would
be premature, the paper suggests that money demand functions can serve as
a useful reference for monetary authorities.
Journal: Applied Economics
Pages: 989-999
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122107
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122107
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:989-999
Template-Type: ReDIF-Article 1.0
Author-Name: Catalina Amuedo-Dorantes
Author-X-Name-First: Catalina
Author-X-Name-Last: Amuedo-Dorantes
Author-Name: Mark Wheeler
Author-X-Name-First: Mark
Author-X-Name-Last: Wheeler
Title: An empirical analysis of the European Union's impact on Spanish economic performance
Abstract:
This paper examines the impact that the European Union (EU) has exerted
on Spanish economic activity. The empirical analysis is conducted using
variance decompositions and historical decompositions derived from a near
vector autoregressive (VAR) model. The near VAR includes the exchange
rate, the EU's inflation rate and output, and Spain's inflation rate,
output, money supply and interest rate. The estimation period begins in
1987, the year after Spain joined the EU, and ends in 1997. The main
finding of the analysis is that the EU has significant impacts on the
Spanish economy. The paper finds that shocks to EU output explain up to
63% of Spanish output. At longer time horizons, shocks to the EU's
inflation rate and output combine to explain over 50% of the forecast
error variance in Spanish inflation.
Journal: Applied Economics
Pages: 1001-1008
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121830
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121830
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1001-1008
Template-Type: ReDIF-Article 1.0
Author-Name: Rukmani Gounder
Author-X-Name-First: Rukmani
Author-X-Name-Last: Gounder
Title: Aid-growth nexus: empirical evidence from Fiji
Abstract:
Foreign aid to the island economies is a major source for foreign
exchange and resource needs. This paper presents an empirical analysis of
the relationship between foreign aid and economic growth in the case of
Fiji. A neoclassical production function is applied to estimate the
aid-growth nexus. Since the data employed are time series for the period
1968 to 1996, the Autoregressive Distributed Lag approach to cointegration
is utilized to estimate the models. Components of total aid, such as grant
aid, loan aid, technical cooperation, bilateral and multilateral aid flows
are also utilized to estimate a disaggregated short-run and long-run
relationship between foreign aid and economic growth. The results show
that total aid flows and its various forms, i.e. bilateral aid, grant aid
and technical cooperation grant aid, has a significant impact on economic
growth in Fiji. As for domestic resources, only exports and private
investments in two equations show positive contribution to growth.
Journal: Applied Economics
Pages: 1009-1019
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122986
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122986
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1009-1019
Template-Type: ReDIF-Article 1.0
Author-Name: Joop Hartog
Author-X-Name-First: Joop
Author-X-Name-Last: Hartog
Author-Name: Pedro Pereira
Author-X-Name-First: Pedro
Author-X-Name-Last: Pereira
Author-Name: Jose Vieira
Author-X-Name-First: Jose
Author-X-Name-Last: Vieira
Title: Changing returns to education in Portugal during the 1980s and early 1990s: OLS and quantile regression estimators
Abstract:
This paper examines the evolution of the returns to education in Portugal
over the 1980s and early 1990s. The main findings indicate that the
returns to education have increased, particularly after joining the
European Union in 1986. Since this occurred along with an increase in the
level of education within the labour force, the process is most likely
demand driven. The results also indicate that modelling on average (i.e.
OLS) misses important features of the wage structure. Quantile regression
(QR) analysis reveals that the effect of education is not constant across
the conditional wage distribution. They are higher for those at higher
quantiles in the conditional wage distribution. Wage inequality expanded
in Portugal over the 1980s and the returns to education had an important
role in this process.
Journal: Applied Economics
Pages: 1021-1037
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122679
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122679
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1021-1037
Template-Type: ReDIF-Article 1.0
Author-Name: Shaomin Huang
Author-X-Name-First: Shaomin
Author-X-Name-Last: Huang
Title: Asymmetric participation in China's stamp market: hobbyists and investors
Abstract:
China's stamp market has expanded rapidly in the last two decades. Stamp
trading has become very profitable. Both hobbyists and investors are more
interested in newly released stamps. This study shows that the value of
newly issued stamps appreciates faster than the value of older issued
stamps. This effect is caused by the asymmetric participation in stamp
collection between hobbyists and investors.
Journal: Applied Economics
Pages: 1039-1044
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122444
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1039-1044
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Wenshwo Fang
Author-X-Name-First: Wenshwo
Author-X-Name-Last: Fang
Author-Name: Li-Fang Wen
Author-X-Name-First: Li-Fang
Author-X-Name-Last: Wen
Title: Energy consumption, employment, output, and temporal causality: evidence from Taiwan based on cointegration and error-correction modelling techniques
Abstract:
In this study, a cointegration analysis and a vector autoregressive model
(VAR) are used to examine the causal relationships among energy
consumption, employment, and output for Taiwan over the period January
1982 to November 1997. Johansen (1988) and Johansen and Juselius (1990)
cointegration test result indicates these three variables are cointegrated
with one cointegrating vector. The results from Granger causality tests
based on vector error-correction models (VECM) suggest bidirectional
Grange causality for employment-output and employment-energy consumption,
but only unidirectional causality running from energy consumption to
output. Furthermore, the impulse responses and variance decompositions are
also incorporated into the analysis. The results from impulsive response
and variance decomposition analysis tell similar stories. Energy
consumption appears to have led to output growth in Taiwan over this
period. The policy implication of this finding is that energy conservation
will restrain the output growth in Taiwan.
Journal: Applied Economics
Pages: 1045-1056
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122484
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122484
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1045-1056
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Kassimatis
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Kassimatis
Author-Name: Spyros Spyrou
Author-X-Name-First: Spyros
Author-X-Name-Last: Spyrou
Title: Stock and credit market expansion and economic development in emerging markets: further evidence utilizing cointegration analysis
Abstract:
This paper empirically investigates the relationship between equity and
credit market development and economic growth, in a sample of five very
important 'emerging' markets. In particular, employing a multivariate
time-series methodology to test for long-run trends and causality between
variables that proxy for stock market development, credit market
development and economic development. The results seem to suggest that
equity markets have a role to play only in relatively liberalized
economies, like Chile and Mexico. In financially repressed economies, like
India, the equity market does not affect real sector growth. Furthermore,
the banking crises in the 1980s and 1990s in Chile and Mexico resulted in
a negative relation between economic growth and the credit market. In
South Korea, equity and credit markets both affect economic growth, but
not vice versa. In countries where the nature of the stock market has been
speculative, like Taiwan, a negative relationship is detected between
equity market development and economic development.
Journal: Applied Economics
Pages: 1057-1064
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121750
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1057-1064
Template-Type: ReDIF-Article 1.0
Author-Name: Paula Lorgelly
Author-X-Name-First: Paula
Author-X-Name-Last: Lorgelly
Author-Name: Stephen Knowles
Author-X-Name-First: Stephen
Author-X-Name-Last: Knowles
Author-Name: P. Dorian Owen
Author-X-Name-First: P. Dorian
Author-X-Name-Last: Owen
Title: Barro's fertility equations: the robustness of the role of female education and income
Abstract:
Barro and Lee (1994) and Barro and Sala-i-Martin (1995) find that real
per-capita GDP and both male and female education have important effects
on fertility in their cross-country empirical studies. In order to assess
the robustness of their results, their estimated models are subjected to
specification and diagnostic testing, the effects on the model of using
the improved Barro and Lee (1996) cross-country data on educational
attainment of the population aged 15 and over are examined, and the
different specifications used by Barro and Lee and by Barro and
Sala-i-Martin compared. The results obtained suggest that their fertility
equations do not perform well in terms of diagnostic testing, and are very
sensitive to the use of different vintages of the educational attainment
proxies and of the Summers-Heston cross-country income data. A robust
explanation of fertility, to link with empirical growth equations, has,
therefore, not yet been found; further work is required in this area.
Journal: Applied Economics
Pages: 1065-1075
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122385
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122385
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1065-1075
Template-Type: ReDIF-Article 1.0
Author-Name: Gianluigi Giorgioni
Author-X-Name-First: Gianluigi
Author-X-Name-Last: Giorgioni
Title: New evidence on the output-inflation trade-off from developing economies: the case of the CFA Franc zone
Abstract:
This aim of this paper is to give a contribution to the debate on whether
output-inflation trade-offs are negatively influenced by the mean of
inflation (as postulated by new-Keynesians) or by the variability of
inflation (as postulated by neo-classical economists). To remove any
concerns about the arbitrariness of the choice of the sample, the analysis
will focus on a group of countries belonging to the same currency union,
the Franc Zone. The results do not provide conclusive evidence on either
theory as it was found that there existed a negative relation between the
output-inflation trade-offs and the mean of inflation on the one hand, and
the variability of inflation, on the other.
Journal: Applied Economics
Pages: 1077-1082
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010003267
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010003267
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1077-1082
Template-Type: ReDIF-Article 1.0
Author-Name: V. Anton Muscatelli
Author-X-Name-First: V. Anton
Author-X-Name-Last: Muscatelli
Author-Name: Patrizio Tirelli
Author-X-Name-First: Patrizio
Author-X-Name-Last: Tirelli
Title: Unemployment and growth: some empirical evidence from structural time series models
Abstract:
This study investigates the empirical relationship between unemployment
and growth in a number of OECD economies. A structural time series model
is used for labour productivity growth to demonstrate that, in most
economies, there seems to be a negative correlation between unemployment
and labour productivity growth. The results provide little support for the
theory that recessions may stimulate productivity growth. The use of a
structural time series approach allows an attempt to model the underlying
dynamics of productivity growth jointly with the effect of unemployment.
Journal: Applied Economics
Pages: 1083-1088
Issue: 8
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010003276
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010003276
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Handle: RePEc:taf:applec:v:33:y:2001:i:8:p:1083-1088
Template-Type: ReDIF-Article 1.0
Author-Name: Frederic Vermeulen
Author-X-Name-First: Frederic
Author-X-Name-Last: Vermeulen
Title: A note on Heckman-type corrections in models for zero expenditures
Abstract:
In Heien and Wessells (1990), a two-step estimation procedure, that makes
use of Heckman-type corrections, is proposed to estimate consumption on
household budget surveys. It is shown that this approach, which draws from
switching regressions models, leads to inconsistent estimates.
Journal: Applied Economics
Pages: 1089-1092
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010004004
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004004
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1089-1092
Template-Type: ReDIF-Article 1.0
Author-Name: Alipasha Razzaghipour
Author-X-Name-First: Alipasha
Author-X-Name-Last: Razzaghipour
Author-Name: Grant Fleming
Author-X-Name-First: Grant
Author-X-Name-Last: Fleming
Author-Name: Richard Heaney
Author-X-Name-First: Richard
Author-X-Name-Last: Heaney
Title: Deviations and mean reversion to purchasing power parity in the Asian currency crisis of 1997
Abstract:
This study analyses the process of mean reversion towards purchasing
power parity (PPP) for a sample of Asian countries around the 1997 crisis.
It is found that appreciation relative to PPP is evident prior to the 1997
crash period. Correction occurs from 1997 onwards, a period marked by
extreme movements in exchange rates with both appreciation and
depreciation relative to the PPP rate over relatively short periods. The
key result of this paper is that although reversion towards PPP is
apparent for mean, though not statistically significant, it is clear that
there is a substantial, statistically significant change in variance from
1997 onwards. This result has implications both for economic modelling of
crash periods and for appropriate choice of statistical tests.
Journal: Applied Economics
Pages: 1093-1100
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121709
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121709
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1093-1100
Template-Type: ReDIF-Article 1.0
Author-Name: Federico Revelli
Author-X-Name-First: Federico
Author-X-Name-Last: Revelli
Title: Spatial patterns in local taxation: tax mimicking or error mimicking?
Abstract:
This paper tests for mimicry in local tax setting, by using a panel data
set of the English non-metropolitan districts in the 1980s — when
property tax rate variability across districts was highest. The results
confirm the presence of large and significant spatial interactions among
districts. Even after allowing for district-specific and time effects, a
district appears to be significantly affected by its neighbours' policies.
A 10% increase in the local property tax rate of a district's neighbours
leads to an increase of 4-5% in its own property tax rate. On the other
hand, the absence of correlation in tax rates between lower tier
(district) authorities and upper tier (county) authorities suggests that
the spatial pattern in district tax rates is not simply driven by
spatially auto-correlated shocks.
Journal: Applied Economics
Pages: 1101-1107
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010007164
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007164
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1101-1107
Template-Type: ReDIF-Article 1.0
Author-Name: Tim Barmby
Author-X-Name-First: Tim
Author-X-Name-Last: Barmby
Author-Name: Nina Smith
Author-X-Name-First: Nina
Author-X-Name-Last: Smith
Title: Household labour supply in Britain and Denmark: some interpretations using a model of Pareto Optimal behaviour
Abstract:
This paper analyses the labour supply behaviour of households in Denmark
and Britain. It employs models in which the preferences of individuals
within the household are explicitly represented. The households are then
assumed to decide on their labour supply in a Pareto Optimal fashion.
Describing the structure of the household decision in this way allows
preliminary results to be obtained on the internal weighting of utilities
within the household.
Journal: Applied Economics
Pages: 1109-1116
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010005238
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010005238
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1109-1116
Template-Type: ReDIF-Article 1.0
Author-Name: Nigel James Miller
Author-X-Name-First: Nigel James
Author-X-Name-Last: Miller
Author-Name: Christopher Tsoukis
Author-X-Name-First: Christopher
Author-X-Name-Last: Tsoukis
Title: On the optimality of public capital for long-run economic growth: evidence from panel data
Abstract:
The role of public capital in economic growth is examined using data from
the Penn World Tables and other sources on a large number of countries.
Drawing on intertemporal optimization, the theoretical framework nests the
exogenous (Solow) and endogenous types of growth and is data-consistent.
It is found that public capital makes a significant contribution to
growth. The actual level of investment on public capital is suboptimal.
Growth in recent decades can be characterized as 'endogenous' with little
sign of convergence. There is evidence of a growth slow-down between the
1970s and 1980s. Human capital also significantly enhances growth.
Journal: Applied Economics
Pages: 1117-1129
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010003258
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010003258
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1117-1129
Template-Type: ReDIF-Article 1.0
Author-Name: Albert Okunade
Author-X-Name-First: Albert
Author-X-Name-Last: Okunade
Author-Name: Mustafa Karakus
Author-X-Name-First: Mustafa
Author-X-Name-Last: Karakus
Title: Unit root and cointegration tests: timeseries versus panel estimates for international health expenditure models
Abstract:
Classical regression estimates of the determinants of the OECD health
expenditures are useful for policy formulation and evaluation. However, if
the underlying timeseries data are not collectively stationary in levels,
the estimated parameters are faulty and can misguide health policy. Until
very recently, the crucial stationarity tests were ignored in a large
number of studies on international comparisons. Stationarity (ADF,
Phillips-Perron, IPS heterogeneous panel) and cointegration (Engle-Granger
bivariate, Johansen's multivariate) tests are conducted here using
1960-1997 health expenditures data (1998 CD ROM) of 19 OECD countries. It
is found that extending the time series data length affects the order of
integration and number of cointegrating vectors. However, it is arguable
whether the order of integration decreases or increases as more
observations are added for testing. The failure of the Johansen and
Engle-Granger cointegration tests for most of the OECD countries cautions
policy makers against reliance on earlier research findings that were
based on unstable relationships among variables in the regression models.
(This is not the case for the UK, Greece and Ireland; policy implications
have been derived for the UK.) Consequently, data calibrated in growth
rates may be more appropriate for investigating the long run relationships
collectively in a panel of OECD health expenditure model specifications.
Journal: Applied Economics
Pages: 1131-1137
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122612
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122612
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1131-1137
Template-Type: ReDIF-Article 1.0
Author-Name: Sven Wilson
Author-X-Name-First: Sven
Author-X-Name-Last: Wilson
Title: Work and the accommodation of chronic illness: A re-examination of the health-labour supply relationship
Abstract:
This study uses a data set of over 14000 households from the state of New
Jersey in the USA to estimate the impact of specific chronic health
conditions on the probability of employment and finds wide variation of
employment impacts across chronic conditions. Additionally, the elasticity
of the employment response is generally greater for women and
lower-skilled workers. Most notable is the role of comorbidity.
Individuals with multiple conditions have markedly lower probability of
employment, and chronic illness explains virtually all of the large gap in
employment probability for those who have multiple conditions. This is
shown using a summary index of disease status that correlates closely with
employment rates across age groups. In the aggregate, chronic disease
striking in adulthood explains about 10% of the total non-employment in
the New Jersey among those aged 35-74. Finally, cross-sectional evidence
gives little support for health as a primary determinant of the aggregate
age-employment profile, though controlling for the age-specific severity
of conditions may alter this finding.
Journal: Applied Economics
Pages: 1139-1156
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010004527
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004527
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1139-1156
Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jurgen Engelbrecht
Author-X-Name-First: Hans-Jurgen
Author-X-Name-Last: Engelbrecht
Author-Name: Chris Langley
Author-X-Name-First: Chris
Author-X-Name-Last: Langley
Title: Inflation crises, deflation, and growth: further evidence
Abstract:
Bruno and Easterly (1998) provide a simple historical description of per
capita GDP growth rates before, during and after periods of high inflation
crises. The pattern of growth shows resurgence in after-crisis growth to
above the before-crisis level. The robustness of this finding is tested
against justifiable changes in the data sample used and against different
crisis definitions. The results show that after-crisis growth rates do not
recover to a level above those experienced before-crisis. In contrast to
Bruno and Easterly, the important distinction between open and closed
economies is emphasized. Only in the former case are their results that
growth deviations from the world average after-crisis improve relative to
the before-crisis periods confirmed. Finally, the pattern of growth
before, during and after deflationary periods is analysed. The data reveal
a potentially important asymmetry in the correlation between deflation and
growth, and inflation and growth. Low rates of deflation are associated
with a similarly negative per capita GDP growth rate as are very high
rates of inflation.
Journal: Applied Economics
Pages: 1157-1165
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010004554
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004554
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1157-1165
Template-Type: ReDIF-Article 1.0
Author-Name: Gregory Berg
Author-X-Name-First: Gregory
Author-X-Name-Last: Berg
Author-Name: William Kaempfer
Author-X-Name-First: William
Author-X-Name-Last: Kaempfer
Title: Cigarette demand and tax policy for race groups in South Africa
Abstract:
This paper calculates cigarette demand for race groups in South Africa.
Elasticities are the most important information a tax policy analyst can
have. Elasticities determine how the tax base will change with a change in
the tax rate and thus how government revenues will respond to the tax.
Elasticities also determine the excess burden that consumers will bear as
a result of the tax. As such, own price, crossprice, and expenditure
elasticities are calculated along with government revenue maximizing tax
rates, and total and excess burdens. Parametric and semiparametric
estimation techniques are used and compared. Results show that a tax on
cigarettes will discourage nonsmokers from starting to smoke and mainly
raise revenue from current smokers. Furthermore, it is found that
consumption behaviours between groups are different implying different
government revenue maximizing tax rates for each group affecting the
distribution of income.
Journal: Applied Economics
Pages: 1167-1173
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122752
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122752
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1167-1173
Template-Type: ReDIF-Article 1.0
Author-Name: Denisard Alves
Author-X-Name-First: Denisard
Author-X-Name-Last: Alves
Author-Name: Regina Celia Cati
Author-X-Name-First: Regina Celia
Author-X-Name-Last: Cati
Author-Name: Vera Lucia Fava
Author-X-Name-First: Vera Lucia
Author-X-Name-Last: Fava
Title: Purchasing power parity in Brazil: a test for fractional cointegration
Abstract:
The purpose of this paper is to test the validity of the purchasing power
parity (PPP) doctrine in Brazil. Historical data for the period 1855-1996
are considered. The period 1855-1990 is also analysed in order to compare
the results with those obtained by Zini and Cati (1993) using the
conventional cointegration analysis. This article uses fractional
cointegration analysis, a flexible methodology which allows for more
subtle forms of mean reversion. The tests performed are those of Geweke
and Porter-Hudak (1983), and of Hurvich and Ray (1995). The critical
values for both tests are generated by simulation because they are
non-standard. The empirical results do not support the absolute PPP
hypothesis but the relative PPP holds in the long run.
Journal: Applied Economics
Pages: 1175-1185
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122819
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122819
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1175-1185
Template-Type: ReDIF-Article 1.0
Author-Name: Brinda Viswanathan
Author-X-Name-First: Brinda
Author-X-Name-Last: Viswanathan
Title: Structural breaks in consumption patterns: India 1952-1991
Abstract:
This study improves upon the econometric modelling for testing and
incorporating structural breaks for a study on Indian consumption patterns
covering a period of four decades and also explores the causes of such
breaks. The tests for structural breaks in consumption patterns indicate
multiple break points which are not uniform across the population groups
and also across commodity groups. Further, the results indicate for the
first time, that the breaks could often be induced by the changes in the
data collection methodology of the survey and not due to changes in
consumer behaviour alone. Apart from this, there is a shift in the
consumption pattern during the mid-1980s in both the rural and the urban
sectors. For the lowest expenditure class the shift is away from food
items with the rural sector showing a change in the price response and the
urban sector showing a change in the total expenditure coefficient. For
the middle and the upper expenditure classes the shifts are not only from
the food items towards non-food items but also from the 'food' group that
includes items like cereals, milk and milk products towards the 'other
food' group which includes items like vegetables and fruits. Its causes
are found to be changes in preferences as well as the income effect.
Journal: Applied Economics
Pages: 1187-1200
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010004581
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004581
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1187-1200
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Arias
Author-X-Name-First: Carlos
Author-X-Name-Last: Arias
Author-Name: Thomas Cox
Author-X-Name-First: Thomas
Author-X-Name-Last: Cox
Title: Estimation of a US dairy sector model by maximum simulated likelihood
Abstract:
This paper estimates a multivariate Tobit system of monthly wholesale
dairy prices where four prices are lower censored by the dairy price
support programme. Using Maximum Simulated Likelihood (MSL) the effects of
simulation noise are tested/corrected for and the relevance of estimating
multivariate versus the single Tobit equations discussed.
Journal: Applied Economics
Pages: 1201-1211
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010005797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010005797
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1201-1211
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Lanoie
Author-X-Name-First: Paul
Author-X-Name-Last: Lanoie
Author-Name: Francois Raymond
Author-X-Name-First: Francois
Author-X-Name-Last: Raymond
Author-Name: Bruce Shearer
Author-X-Name-First: Bruce
Author-X-Name-Last: Shearer
Title: Work sharing and productivity: evidence from firm level data
Abstract:
This paper is the first to examine empirically how work sharing
influences workers' productivity, using a unique data set from a large
Canadian firm. This firm has adopted a work sharing scheme for one year,
which allows comparison of workers' productivity with and without the work
sharing programme. It is found that work sharing has led to a significant
decrease in labour productivity.
Journal: Applied Economics
Pages: 1213-1220
Issue: 9
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122568
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122568
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Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1213-1220
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe
Author-X-Name-First: Jesus
Author-X-Name-Last: Felipe
Author-Name: J. S. L. McCombie
Author-X-Name-First: J. S. L.
Author-X-Name-Last: McCombie
Title: The CES Production Function, the accounting identity, and Occam's razor
Abstract:
This paper reconsiders the argument that empirical estimations of
aggregate production functions may be interpreted merely as statistical
artefact. The reason is that Occam's razor, or Herbert Simon's principle
of parsimony, suggests that the aggregate production function, together
with the side equations derived from the usual neoclassical optimizing
conditions, simply reflect the underlying accounting identity that value
added definitionally equals the wage bill plus total profits. This
argument is illustrated with respect to the empirical evidence presented
by Arrow, Chenery, Minhas and Solow (Review of Economics and Statistics,
XLIII, 225-50, 1961) and which led them to derive the Constant Elasticity
of Substitution aggregate production function. It is shown that their
results are more parsimoniously explained with reference to the underlying
accounting identity than to any technological relationship.
Journal: Applied Economics
Pages: 1221-1232
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122836
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122836
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1221-1232
Template-Type: ReDIF-Article 1.0
Author-Name: Annette Vann De Berg
Author-X-Name-First: Annette Vann
Author-X-Name-Last: De Berg
Author-Name: Yolanda Grift
Author-X-Name-First: Yolanda
Author-X-Name-Last: Grift
Title: Dutch trade union membership 1979-1995
Abstract:
Determinants of Dutch trade union membership are analysed for the years
1979, 1987 and 1995. By means of a decomposition method it is established
that changing characteristics of the working population primarily caused
the union decline between 1979 and 1987, whereas the recovery afterwards
can be entirely attributed to changing unionization behaviour. A further
application of the decomposition method shows that the contribution of the
separate explanatory variables to shifts in the density rate is less
straightforward than the results of the first analyses suggest.
Journal: Applied Economics
Pages: 1233-1242
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122022
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122022
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1233-1242
Template-Type: ReDIF-Article 1.0
Author-Name: Cherian Samuel
Author-X-Name-First: Cherian
Author-X-Name-Last: Samuel
Title: Stock market and investment: the signalling role of the market
Abstract:
The evidence in this paper suggests that the q-theory of investment is
not adequate to explain capital expenditure decisions at the firm level.
Managerial as well as market perception is important, with the former more
critical than the latter. The results also suggest that stock market
activity has only limited implications for the resource allocation process
in the economy. The evidence for the q-theory, based on firm-level data,
confirms the previous finding in the literature that the poor empirical
performance of the model in the past has been due in part to the use of
aggregate data at the economy level. These findings have important
implications for the debate in the literature regarding the relationship
between shareholder myopia and managerial myopia. There is a notion in the
literature that the stock market puts too much pressure on managers, who
in turn indulge in myopic behaviour by underinvesting for the long-term,
especially by way of R and D expenditures. The results presented here
suggest that, given the limited role that market perception elements play
in the determination of capital expenditures at the firm-level,
shareholder myopia is unlikely to lead to managerial myopia.
Journal: Applied Economics
Pages: 1243-1252
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840121765
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840121765
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Template-Type: ReDIF-Article 1.0
Author-Name: Kishor Sharma
Author-X-Name-First: Kishor
Author-X-Name-Last: Sharma
Title: Liberalization, growth and structural change: evidence from Nepalese manufacturing
Abstract:
This paper presents an empirical analysis of the consequences of
liberalization on industrial structure in Nepal, a least developed country
with weak institutions and severe infrastructure bottlenecks. Results
suggest some structural change in manufacturing output and trade
orientation which appears to be due to a change in incentive structure,
but no significant improvements were recorded in total factor productivity
growth which is of central importance for a least developed country like
Nepal. Export intensity rose significantly in the postliberalization
period despite poor productivity performance of export-oriented industries
while import intensity fell due mainly to improved competitiveness in
import competing industries and a fall in imports for smuggling to India.
Journal: Applied Economics
Pages: 1253-1261
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010004013
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004013
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1253-1261
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Title: The persistence of unemployment in the USA and Europe in terms of fractionally ARIMA models
Abstract:
This article examines the persistence of unemployment in the USA and four
European countries by means of fractionally integrated ARMA (ARFIMA)
models. In doing so, a type of flexibility in modelling low-frequency
dynamics not achieved by non-fractionally ARIMA models can be provided.
The results indicate that the unemployment series are much more persistent
in some countries such as the UK and France, than in others including
Germany or the USA.
Journal: Applied Economics
Pages: 1263-1269
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010007137
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007137
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1263-1269
Template-Type: ReDIF-Article 1.0
Author-Name: Victor Pinga
Author-X-Name-First: Victor
Author-X-Name-Last: Pinga
Author-Name: Gerald Nelson
Author-X-Name-First: Gerald
Author-X-Name-Last: Nelson
Title: Money, prices and causality: monetarist versus structuralist explanations using pooled country evidence
Abstract:
The direction of causality between changes in money supply and aggregate
prices has long been a matter of controversy between structuralists and
monetarists. This paper addresses deficiencies in this literature in three
ways. First, a large sample of countries with alternate measures of money
and price variables is used to evaluate the evidence on money, inflation
and causality. Second, combined data are tested for causality, with the
combinations based on variables suggested by the literature - level of per
capita income, magnitude of inflation, degree of financial market
development, and independence of the central bank. Finally, because the
choice of lag length is often arbitrary, results are generated with
varying lags and consistency across different lag periods looked for. Two
presentation methods are developed - categorical and graphical. Evidence
of structural inflation, was found only in Chile and Sri Lanka. Evidence
of money supply exogeneity on the other hand was found to be strongest in
Kuwait, Paraguay and the USA. Most countries exhibited mixed evidence of
money supply endogeneity, with bidirectional causation between money
supply and aggregate prices a common result.
Journal: Applied Economics
Pages: 1271-1281
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122078
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1271-1281
Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Chuan Chen
Author-X-Name-First: Hui-Chuan
Author-X-Name-Last: Chen
Title: Taiwan's exports and trade imbalance against US and Japan: an empirical analysis
Abstract:
The persistence of the bilateral trade surplus between Taiwan and the USA
and the bilateral trade deficit between Taiwan and Japan despite the
significant appreciation or depreciation of the NT dollar during the early
1980s to the mid-1990s renewed interest to seek explanations for these
phenomena. To assess the above proposition, a polynomial distributed lag
(PDL) method is imposed on the impact of changes in the real exchange rate
on the bilateral trade structure particularly export demand and trade
imbalance between Taiwan, the USA and Japan from 1981 to 1998. The
empirical findings show that: (1) the real income factors have important
effects on the real exports in both cases; (2) the real exchange rates and
the real imports are not major determinants of the export demand from
Taiwan to the USA but they do play an important role on the real exports
from Taiwan to Japan; (3) the real exchange rate has significant effect on
the real trade surplus with the USA and on trade deficit with Japan but
the real income has not.
Journal: Applied Economics
Pages: 1283-1287
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122642
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122642
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1283-1287
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Wenshwo Fang
Author-X-Name-First: Wenshwo
Author-X-Name-Last: Fang
Author-Name: Li-Fang Wen
Author-X-Name-First: Li-Fang
Author-X-Name-Last: Wen
Author-Name: Chwenchi Liu
Author-X-Name-First: Chwenchi
Author-X-Name-Last: Liu
Title: Defence spending, economic growth and temporal causality: evidence from Taiwan and mainland China, 1952-1995
Abstract:
This paper uses a cointegration analysis and a vector autoregressive
model (VAR) to examine the causal relationship between defence spending
and economic growth for Taiwan and Mainland China over the period
1952-1995. It is found that these two variables are not cointegrated for
both countries studied. The results of the Granger causality tests suggest
bidirectional Granger causality (feedback) between defence spending and
economic growth for Taiwan, unidirectional Granger causality running from
economic growth to defence spending for Mainland China, and unidirectional
Granger causality running from Taiwan's defence spending to Mainland
China's defence spending for cross-country studied. These results further
indicate that there exists no arms race between two countries from both
sides of Taiwan strait. Furthermore, impulse responses and variance
decompositions are incorporated into the analysis. The results from the
impulse responses and variance decompositions tell a similar story.
Journal: Applied Economics
Pages: 1289-1299
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122529
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122529
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1289-1299
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Rezitis
Author-X-Name-First: Anthony
Author-X-Name-Last: Rezitis
Author-Name: A. Blake Brown
Author-X-Name-First: A. Blake
Author-X-Name-Last: Brown
Author-Name: William Foster
Author-X-Name-First: William
Author-X-Name-Last: Foster
Title: Dynamic factor demands for US cigarette manufacturing under rational expectations
Abstract:
The rational expectations approach to adjustment cost models for factor
demand is used to develop a dynamic model for US cigarette manufacturing.
In the present study dynamic production modelling is extended to the case
of multiple outputs. This analysis is the first to address cigarette
manufacturing allowing for the possible influence of quasi-fixed factors,
multiple outputs and rational expectations. Short-, intermediate-, and
long-run factor demands are estimated and the presence of adjustment costs
tested for in US cigarette manufacturing. The results indicate that there
are significant adjustment costs associated with adjusting tobacco stock
but not with adjusting the capital stock. Cigarettes produced for exports
appear to differ in their marginal cost of production from cigarettes
produced for sale in the US market.
Journal: Applied Economics
Pages: 1301-1311
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840122398
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840122398
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1301-1311
Template-Type: ReDIF-Article 1.0
Author-Name: Berta Rivera
Author-X-Name-First: Berta
Author-X-Name-Last: Rivera
Title: The effects of public health spending on self-assessed health status: an ordered probit model
Abstract:
This paper explores the relationship between public health expenditure
and self-assessed health status. Medical resources are imputed according
to where individuals reside. The analysis draws upon data from the 1993
National Health Survey. Controlling for a number of individual
characteristics, which also determine health status, the estimations
indicate that increases in public health expenditure significantly improve
both physiological and physical health. The results remain consistent when
the model is reestimated and the change in the probability at the mean of
the independent variable is calculated.
Journal: Applied Economics
Pages: 1313-1319
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010007146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007146
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1313-1319
Template-Type: ReDIF-Article 1.0
Author-Name: Burc Ulengin
Author-X-Name-First: Burc
Author-X-Name-Last: Ulengin
Author-Name: Nurhan Yenturk
Author-X-Name-First: Nurhan
Author-X-Name-Last: Yenturk
Title: Impacts of capital inflows on aggregate spending categories: the case of Turkey
Abstract:
This paper discusses the impact of foreign savings on aggregate spending
categories in Turkey. Using the vector autoregressive (VAR) models the
major finding is that foreign savings has an increasing effect on
consumption. The increase of investment arises from the accelerator effect
of consumption, which results in an upward trend in investment in
non-tradable sectors. Concluding that the policy of relying on foreign
savings, to obtain long-term increases in tradable sector investment and
competitiveness is ill-judged.
Journal: Applied Economics
Pages: 1321-1328
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010009847
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009847
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1321-1328
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Heyndels
Author-X-Name-First: Bruno
Author-X-Name-Last: Heyndels
Title: Asymmetries in the flypaper effect: empirical evidence for the Flemish municipalities
Abstract:
Recent empirical work on US governments indicates an asymmetry in the
flypaper effect: the elasticity of public spending with respect to changes
in grants differs significantly for positive and negative changes. Using a
panel of data on Flemish municipalities covering the period 1989-1996, we
also find clear evidence of asymmetrical reactions. More precisely, the
results suggest the presence of a fiscal replacement type of asymmetry:
when grants grow, municipalities spend most of the additional revenue.
However, when grants fall, spending is unaffected and municipalities
compensate the loss through additional taxation.
Journal: Applied Economics
Pages: 1329-1334
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010004536
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004536
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1329-1334
Template-Type: ReDIF-Article 1.0
Author-Name: Rodney Paul
Author-X-Name-First: Rodney
Author-X-Name-Last: Paul
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Author-Name: Viju Ipe
Author-X-Name-First: Viju
Author-X-Name-Last: Ipe
Title: Market integration in US gasoline markets
Abstract:
This paper analyses the degree of market integration in the retail
gasoline markets in the United States after it was completely deregulated
in 1981. The monthly average prices of unleaded regular gasoline,
excluding taxes, from January 1983 to December of 1998 for five US
Petroleum Administration Defense Districts were considered in the
analysis. There is evidence of a high degree of market integration in the
gasoline markets as evidenced by the Engel and Granger and Johansen
cointegration tests, but perfect market integration is rejected in all but
a few cases.
Journal: Applied Economics
Pages: 1335-1340
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010004545
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010004545
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1335-1340
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow
Author-X-Name-First: Michael
Author-X-Name-Last: Marlow
Title: Bureaucracy and student performance in US public schools
Abstract:
This paper tests the hypothesis that monopoly power of school districts
allows bureaucratic expansion and fosters poor academic performance in the
public school system in California. Evidence indicates that monopoly power
is positively associated with employment of administrators and teachers,
and therefore supports the bureaucratic expansion hypothesis. While
numbers of teachers do not influence performance measures, numbers of
administrators are shown to positively affect performance - results that
suggest that too many teachers, but too few administrators, are employed.
While bureaucracy theory may explain the resource misallocation, other
reasons might include rising public pressures on hiring teachers over
administrators, spending equalization policies, and the weak California
economy in the period under investigation.
Journal: Applied Economics
Pages: 1341-1350
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010005229
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010005229
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1341-1350
Template-Type: ReDIF-Article 1.0
Author-Name: Azzeddine Azzam
Author-X-Name-First: Azzeddine
Author-X-Name-Last: Azzam
Author-Name: David Rosenbaum
Author-X-Name-First: David
Author-X-Name-Last: Rosenbaum
Title: Differential efficiency, market structure and price
Abstract:
A persistent question in industrial economics is the underpinning of the
link between market concentration and price. How much of the link can be
attributed to market power and how much to market efficiency? This paper
develops a theoretical model to address that question. Applied to the US
portland cement industry, the model indicates that both impacts matter. In
relative terms, however, the market power effect is twice as large as the
efficiency effect. An implication for merger policy is that the beneficial
efficiency effects of mergers may not be obtained without the detrimental
market power effects as well.
Journal: Applied Economics
Pages: 1351-1357
Issue: 10
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010006615
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010006615
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Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1351-1357
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Paradiso
Author-X-Name-First: Massimo
Author-X-Name-Last: Paradiso
Author-Name: Antonella Trisorio
Author-X-Name-First: Antonella
Author-X-Name-Last: Trisorio
Title: The effect of knowledge on the disparity between hypothetical and real willingness to pay
Abstract:
The use of a contingent valuation (CV) method is controversial among
economists because it is based on hypothetical rather than real economic
choices. This paper reports the results of an experiment designed to
elicit the real and the hypothetical willingness to pay (WTP) for a
private good. The effect of different settings of knowledge (direct and
indirect) of the good on subjects' valuation behaviour are investigated.
The findings show that (i) a direct knowledge of the good reduces the
observed disparity between hypothetical and real WTP; and that (ii)
different settings of knowledge generate different perceptions of the
characteristics of the good.
Journal: Applied Economics
Pages: 1359-1364
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840152478039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840152478039
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1359-1364
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Reinhardt
Author-X-Name-First: Frank
Author-X-Name-Last: Reinhardt
Author-Name: David Giles
Author-X-Name-First: David
Author-X-Name-Last: Giles
Title: Are cigarette bans really good economic policy?
Abstract:
This study investigates the quarterly relationship between the quantity
of cigarettes sold, real disposable income per capita, and the relative
price level of cigarettes in Canada. Careful attention is paid to the
nonstationarity of the data and the dynamic specification of the model. It
is concluded that cigarette demand is extremely insensitive to price and
income changes. This is evidence of the large consumer surplus smokers
enjoy and the large revenue increasing potential of a cigarette tax
increase policy, as opposed to cigarette bans.
Journal: Applied Economics
Pages: 1365-1368
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010007489
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007489
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1365-1368
Template-Type: ReDIF-Article 1.0
Author-Name: Denise Stanley
Author-X-Name-First: Denise
Author-X-Name-Last: Stanley
Author-Name: Sirima Bunnag
Author-X-Name-First: Sirima
Author-X-Name-Last: Bunnag
Title: A new look at the benefits of diversification: lessons from Central America
Abstract:
Recent trends of export diversification in Central America may lower
foreign exchange earnings instability there. Four countries-Costa Rica, El
Salvador, Honduras, and Guatemala-are analysed across a twenty-year
period. The paper uses United Nations Commodity Trade Statistics to
explain why Costa Rica and Honduras have enjoyed greater earnings
stability in recent years, despite the fact that Honduras has not greatly
diversified its export products and markets. Despite the growth of new
agricultural and manufacturing goods, traditional primary products still
dominate the countries' export portfolios. Specific products within each
of the four broad product category groups contribute to the varied country
outcomes. Summary statistics from the United Nations (panel) data suggest
newer agricultural exports have not stabilized Guatemalan and Salvadoran
export earnings, while Honduras has enjoyed relatively stable banana
export revenues and Costa Rica has benefited from the smooth flow of
microelectronic products. Further panel data regression analysis shows
country size and intangible country effects also explain parts of the
detrended earnings deviation in addition to product base and level of
diversification.
Journal: Applied Economics
Pages: 1369-1383
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010007498
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007498
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1369-1383
Template-Type: ReDIF-Article 1.0
Author-Name: Vincenzo Atella
Author-X-Name-First: Vincenzo
Author-X-Name-Last: Atella
Author-Name: Beniamino Quintieri
Author-X-Name-First: Beniamino
Author-X-Name-Last: Quintieri
Title: Do R&D expenditures really matter for TFP?
Abstract:
Recently, several studies have emphasized the role of R&D expenditure in
determining Total Factor Productivity (TFP). In this paper it is shown
that the relationship between R&D variables and TFP is far from being
established. In particular, by using data for the Italian economy, it is
found that the estimated effects of R&D variables on TFP crucially depends
on: (i) the way in which the production function, used to derive Solow
residuals, is defined; (ii) the numbers of maintained hypotheses used to
estimate Solow residuals; (iii) the level of aggregation of the data
employed in the empirical analysis.
Journal: Applied Economics
Pages: 1385-1389
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010007939
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007939
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1385-1389
Template-Type: ReDIF-Article 1.0
Author-Name: Susan Averett
Author-X-Name-First: Susan
Author-X-Name-Last: Averett
Title: Moonlighting: multiple motives and gender differences
Abstract:
This paper examines the incidence and reasons for moonlighting with a
focus on gender differences. The study specifies and estimates a bivariate
probit model of labour supply and the decision to hold more than one job.
It is found that the factors leading men and women to moonlight are
similar. A wage decomposition analysis reveals that 93 percent of the
differential between male and female moonlighters' wages is not explained
by differences in characteristics, and little connection is found between
an individual's human capital and their moonlighting wage. Finally, it is
found that moonlighters are less likely to report their income.
Journal: Applied Economics
Pages: 1391-1410
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010007957
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007957
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1391-1410
Template-Type: ReDIF-Article 1.0
Author-Name: Ozgur Berk Kan
Author-X-Name-First: Ozgur Berk
Author-X-Name-Last: Kan
Title: The evidence of strategic pricing policies of Turkish textile exports
Abstract:
This paper examines the strategic pricing behaviour (Pricing to Market;
PTM) policies of textile exports in the 1990s for a hyperinflation
country, Turkey, whose currency has been depreciating continually for the
last two decades. The findings show that Turkish textile export categories
exhibit evidence of strategic pricing behaviour when the Turkish textiles
export data is analysed for different frequencies. The results show that
evidence of strategic pricing behaviour is observed in response to changes
in real exchange rates for textile exports for closer lagging periods and
strategic pricing behaviour diminishes with further lagging periods. Also,
evidence of strategic pricing behaviour is observed in a more recurrent
fashion with higher frequency data, three-month periods, than with
relatively lower frequency data, six-month and 12-month periods. Another
interesting finding is that Turkish textile exporters prefer to increase
their prices as a reaction if they had adjusted their prices in an
overshooting fashion in response to real exchange changes in the previous
period. The most important finding of the paper is that while Turkish
textile exporters prefer to adjust their export pricing without fully
absorbing the real exchange depreciation and by increasing their relative
markups for some textile categories, they prefer to adjust their export
prices by lowering their markups in addition to fully absorbing the real
exchange depreciation for some other textile categories in order to
increase their market share overseas.
Journal: Applied Economics
Pages: 1411-1421
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010007966
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007966
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1411-1421
Template-Type: ReDIF-Article 1.0
Author-Name: John List
Author-X-Name-First: John
Author-X-Name-Last: List
Title: Determinants of securing academic interviews after tenure denial: evidence from a zero-inflated Poisson model
Abstract:
This paper uses a new data set to estimate empirically the optimal job
search strategies for recently non-tenured economists seeking to obtain an
academic job. Estimates from a zero inflated Poisson model suggest that a
portion of interview counts is beyond the candidate's control as age,
colour of skin, gender, and citizenship all play a part in the interview
decision. A candidate can substantially enhance the probability of
obtaining initial interviews by maintaining quality research and teaching
portfolios, however.
Journal: Applied Economics
Pages: 1423-1431
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010009856
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009856
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1423-1431
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Zofio
Author-X-Name-First: Jose
Author-X-Name-Last: Zofio
Author-Name: C. A. Knox Lovell
Author-X-Name-First: C. A. Knox
Author-X-Name-Last: Lovell
Title: Graph efficiency and productivity measures: an application to US agriculture
Abstract:
Hyperbolic measures of efficiency and productivity change with respect to
a graph representation of production technology allow researchers to
consider output and input dimensions simultaneously in measuring producer
performance. Hyperbolic efficiency measures have been proposed, but
empirical implementation has not followed, either in efficiency analysis
or in productivity analysis. The objectives of this paper are to define
hyperbolic performance measures on a graph representation of production
technology, to motivate their use by stating some of their advantages over
their radial counterparts, and to introduce a direct formulation to
calculate them making use of Data Envelopment Analysis techniques. The
ideas are illustrated by calculating hyperbolic efficiency and Malmquist
productivity indexes for a US agricultural panel data set.
Journal: Applied Economics
Pages: 1433-1442
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010009865
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009865
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1433-1442
Template-Type: ReDIF-Article 1.0
Author-Name: Abereniye Atemie-Obuoforibo
Author-X-Name-First: Abereniye
Author-X-Name-Last: Atemie-Obuoforibo
Title: Public policies: will policy be ineffective if welfare is a random-walk
Abstract:
This study contradicts the view that policy cannot be effective if the
welfare variable is a random-walk. Also, the study disagrees with the
methodology employed by some proponents of this view, and goes on to show
that the conclusion of policy ineffectiveness was only due to a wrong
inference procedure. Furthermore, it points out that the notion of policy
effectiveness suggests the examination of the relationship between policy
and welfare; hence, what to look for is not a trend in the individual time
series, but a common trend which relates the policy instrument and the
welfare-variable in the policy environment under consideration.
Journal: Applied Economics
Pages: 1443-1453
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010009874
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009874
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1443-1453
Template-Type: ReDIF-Article 1.0
Author-Name: Jostein Grytten
Author-X-Name-First: Jostein
Author-X-Name-Last: Grytten
Author-Name: Fredrik Carlsen
Author-X-Name-First: Fredrik
Author-X-Name-Last: Carlsen
Author-Name: Irene Skau
Author-X-Name-First: Irene
Author-X-Name-Last: Skau
Title: The income effect and supplier induced demand. Evidence from primary physician services in Norway
Abstract:
A much debated issue within the health economic literature is whether
physicians can induce demand for their services. The relationship between
physicians' 'nonpractice income' and supply of primary physician services
in Norway is examined. It is argued that, if inducement exists, physicians
with a low nonpractice income who work in municipalities where competition
for patients is high, compensate for lack of patients by inducing demand.
This model is adapted to the institutional setting of the Norwegian
primary physician services, where there is a fixed fee schedule. The
analyses were performed on a large set of data, encompassing all primary
care physicians in Norway who are remunerated per item of treatment. Data
on output in practice were merged with information about nonpractice
income from the tax forms of the physician and her/his spouse. In
municipalities with high physician density, nonpractice income had no
effect on the number of consultations per physician, or on the number of
treatment items per consultation. The results are interpreted as evidence
against the inducement hypothesis.
Journal: Applied Economics
Pages: 1455-1467
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010009883
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009883
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1455-1467
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Finaldi Russo
Author-X-Name-First: Paolo Finaldi
Author-X-Name-Last: Russo
Author-Name: Paola Rossi
Author-X-Name-First: Paola
Author-X-Name-Last: Rossi
Title: Credit constraints in Italian industrial districts
Abstract:
Italy is characterized by strong differences both in the productive and
in the financial structure. Small and medium firms tend to concentrate in
the so called 'Marshallian industrial district', whose productive system
has been thoroughly studied but whose financial features are partially
overlooked. This paper aims at investigating how the location of a firm in
an industrial district affects its ability to resort to external finance,
mostly bank loans. The econometric analysis on a panel of 1700 firms over
the 1989-1995 period shows that firms located inside industrial districts
have an advantage in terms of financial relations with the banking system:
both the cost of credit and the probability to face financial constraints
are lower. Nevertheless, the cyclical pattern of this advantage is not in
favour of district firms: following the tightening of monetary policy,
increases in interest rates on bank loans are proportionally higher for
firms inside the district; furthermore, also the advantage consisting in
an easier access to credit market disappears after the 1992-1993
recession.
Journal: Applied Economics
Pages: 1469-1477
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010010467
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010010467
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1469-1477
Template-Type: ReDIF-Article 1.0
Author-Name: Asher Tishler
Author-X-Name-First: Asher
Author-X-Name-Last: Tishler
Author-Name: Ron Ventura
Author-X-Name-First: Ron
Author-X-Name-Last: Ventura
Author-Name: John Watters
Author-X-Name-First: John
Author-X-Name-Last: Watters
Title: Cellular telephones in the Israeli market: the demand, the choice of provider and potential revenues
Abstract:
This study presents the methodology, the estimates and a scenario for
forecasting the demand for cellular telephones and their use in Israel.
The analysis was based on the integration of three sub-models. The
estimate of the consumer's decision on whether to purchase a cellular
telephone and what type was obtained by using a discrete choice model of
the multinomial logit type. The total number of cellular telephone
purchases to be made in Israel during the years 1998-2008 was estimated
using a logistic growth model employing aggregate data over time. The
anticipated demand for airtime was based on findings of a survey carried
out on a national sample, and on actual usage data on the various
consumers during the years prior to the survey. The research shows the
substantial economic potential of Israel's cellular telephone market.
Journal: Applied Economics
Pages: 1479-1492
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010011916
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010011916
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1479-1492
Template-Type: ReDIF-Article 1.0
Author-Name: David Owyong
Author-X-Name-First: David
Author-X-Name-Last: Owyong
Author-Name: Shandre Thangavelu
Author-X-Name-First: Shandre
Author-X-Name-Last: Thangavelu
Title: An empirical study on public capital spillovers from the USA to Canada
Abstract:
The effect of public capital on private sector productivity has received
much attention in the literature. The impact of an adjacent country's
public capital on domestic productivity has, however, not been previously
examined. This paper attempts to fill this gap by examining the
possibility of such spillovers from the USA to Canada. Due to close
proximity of both countries, the hypothesis of the paper is that these
spillovers are important. A production function model introduces US public
capital as an exogenous variable and tests for its significance. The
results indicate positive spillovers from the USA public capital to
Canadian productivity.
Journal: Applied Economics
Pages: 1493-1499
Issue: 11
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010011925
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010011925
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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1493-1499
Template-Type: ReDIF-Article 1.0
Author-Name: Lila Truett
Author-X-Name-First: Lila
Author-X-Name-Last: Truett
Author-Name: Dale Truett
Author-X-Name-First: Dale
Author-X-Name-Last: Truett
Title: The Spanish automotive industry: scale economies and input relationships
Abstract:
This paper investigates the existence of economies of scale in the
Spanish automobile industry as well as the substitution possibilities
between input pairs and the direct and cross price elasticities of demand
for the various inputs by estimating a translog cost function for both a
three input model involving capital, labour, and intermediate goods as
well as a four input model where energy is separated from other
intermediate goods. The results of this study are consistent with the
hypothesis of economies of scale in the Spanish automobile industry,
particularly at the low and mean levels of output. These results also are
consistent with the hypothesis that capital is a substitute for the other
inputs, but that labour and intermediate goods are complements. Labour and
energy also appear to have a complementary relationship over most of the
data points in this study. The significance of a complementary
relationship between labour and intermediate goods is that any attempt by
the Spanish government to restrict imports of these inputs, resulting in
higher domestic prices for them, may aggravate an already serious domestic
unemployment problem.
Journal: Applied Economics
Pages: 1503-1513
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840012960
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840012960
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1503-1513
Template-Type: ReDIF-Article 1.0
Author-Name: C. J. A. Van Vliet Rene
Author-X-Name-First: C. J. A. Van Vliet
Author-X-Name-Last: Rene
Title: Effects of price and deductibles on medical care demand, estimated from survey data
Abstract:
This paper estimates the price sensitivity of medical care demand from
cross-sectional survey data by relating medical consumption to
approximated copayment rates resulting from deductibles. Instead of the
deductibles itself, a transformation is used that better takes into
account that expected expenditures at policy level play an important role
in the reaction of consumers with regard to their deductible. This
transformation approximates the average expected copayment rate, that is,
the portion of expenditures that one may expect - at the beginning of the
year - to pay out-of-pocket, given the deductible and given the expected
expenditures at policy level. The principal finding is an estimated price
elasticity of medical care demand of -0.079. The highest price sensitivity
was found for physiotherapy visits (-0.12) and general practitioner visits
(-0.085), and the lowest for specialist visits (-0.074) and prescription
drugs (-0.056). Hospital care demand appeared not to be affected by
deductibles.
Journal: Applied Economics
Pages: 1515-1524
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010013626
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010013626
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1515-1524
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Anker
Author-X-Name-First: Peter
Author-X-Name-Last: Anker
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Title: On the relationship between the value of the mark and German production
Abstract:
This study employs Johansen's cointegration technique to determine the
long-run relationship between exchange value of the DM and German
production. It is shown that depreciation of the DM has a long-run
expansionary impact on German production. This conclusion is based on a
new method of selecting the order of VAR and the appropriate cointegrating
vector simultaneously.
Journal: Applied Economics
Pages: 1525-1530
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010012933
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010012933
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1525-1530
Template-Type: ReDIF-Article 1.0
Author-Name: Øystein Thøgersen
Author-X-Name-First: Øystein
Author-X-Name-Last: Thøgersen
Title: Reforming social security: assessing the effects of alternative funding strategies
Abstract:
Population ageing implies that the large pay-as-you-go social security
programmes implemented in many OECD economies will run into severe
financial problems. By means of a numerical overlapping generations model,
this paper investigates the intergenerational welfare effects of a
transition to funded security programmes. Such programmes imply permanent
increases in the welfare of the young and unborn generations. It is
demonstrated that the size of the welfare gains varies significantly
between alternative funding strategies. A nonindividualized funding
strategy characterized by increased government asset accumulation triggers
considerable welfare gains through increased asset returns in the future.
Even larger welfare gains may be realized by an individual funding
strategy characterized by increased asset accumulation accompanied by an
adoption of actuarial supplementary pensions (i.e. actuarial supplementary
pensions combined with a fixed minimum pension) which reduces future tax
distortions drastically.
Journal: Applied Economics
Pages: 1531-1540
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010014436
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014436
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1531-1540
Template-Type: ReDIF-Article 1.0
Author-Name: Pilar Beneito
Author-X-Name-First: Pilar
Author-X-Name-Last: Beneito
Author-Name: Javier Ferri
Author-X-Name-First: Javier
Author-X-Name-Last: Ferri
Author-Name: M. Luisa Molto
Author-X-Name-First: M. Luisa
Author-X-Name-Last: Molto
Author-Name: Ezequiel Uriel
Author-X-Name-First: Ezequiel
Author-X-Name-Last: Uriel
Title: Determinants of the demand for education in Spain
Abstract:
The aim of this paper is to estimate an equation for household demand for
both secondary and university education, using an estimation of the
opportunity cost associated with the decision to invest in education.
Limited dependent variable models are applied to the data provided by the
Family Budget Survey 1991 for Spain. The results show that the social and
economic status of the family has a comparatively greater impact on
household expenditure on secondary education than on university education.
The opportunity cost is also shown to be a decisive variable in the
decision to invest in secondary education, although the results are less
conclusive in the case of university education.
Journal: Applied Economics
Pages: 1541-1551
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010009892
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010009892
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1541-1551
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Anker
Author-X-Name-First: Peter
Author-X-Name-Last: Anker
Title: ECB monetary policy and the DM-dollar exchange rate: evidence from a Bayesian VAR
Abstract:
Since the start of the European Monetary Union (EMU) in January 1999, the
DM has depreciated considerably against the currencies of major industrial
countries. Whether there is a systematic failure of vector autoregressive
(VAR) models fitted to the pre-EMU period to predict forward looking
variables in the year 1999 is investigated. Conditional forecasts are used
in order to capture the potential effects of real shocks and to assess the
ECB's reaction to these shocks. The findings suggest that neither real
shocks nor the actual ECB-policy reaction can explain the exchange-rate
devaluation. This points to important effects of increased uncertainty
following the regime shift resulting in an increased risk premium in the
foreign exchange market.
Journal: Applied Economics
Pages: 1553-1562
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010012942
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010012942
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1553-1562
Template-Type: ReDIF-Article 1.0
Author-Name: Nikiforos Laopodis
Author-X-Name-First: Nikiforos
Author-X-Name-Last: Laopodis
Title: Effects of government spending on private investment
Abstract:
This paper investigates the effects of military and non-military public
expenditures on gross private investment using cointegration and
error-correction analysis. The latter type of public spending is
disagreggated into expenditures of infrastructure, consumption and other
general government expenditures. The empirical evidence from four emerging
European countries namely, Greece, Ireland, Portugal and Spain suggests
that in some cases public capital spending stimulates investment, while in
others it depresses it. Also, the results tentatively indicate that
defence spending exerts no influence on private investment, thus adding to
the ongoing controversy of the economic effects of military spending.
Journal: Applied Economics
Pages: 1563-1577
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010011934
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010011934
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1563-1577
Template-Type: ReDIF-Article 1.0
Author-Name: A. B. Prakash
Author-X-Name-First: A. B.
Author-X-Name-Last: Prakash
Author-Name: E. H. D'A. Oliver
Author-X-Name-First: E. H. D'A.
Author-X-Name-Last: Oliver
Author-Name: K. Balcombe
Author-X-Name-First: K.
Author-X-Name-Last: Balcombe
Title: Does building new roads really create extra traffic? Some new evidence
Abstract:
The debate that expenditure on new or existing roads induces more traffic
has intensified during the 1990s in most developed countries. In this
paper the controversy is readdressed from a UK perspective, using the
method of Granger noncausality. Results indicate that aggregate
expenditure on new and existing roads does not induce additional traffic
in the Granger sense. Conversely, the results found that traffic Granger
causes road expenditure. The importance of these results, along with
issues concerning the selection and specification of dynamic models, are
discussed.
Journal: Applied Economics
Pages: 1579-1585
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010013617
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010013617
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1579-1585
Template-Type: ReDIF-Article 1.0
Author-Name: Asifa Nahid
Author-X-Name-First: Asifa
Author-X-Name-Last: Nahid
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Title: Immigration and the unemployment benefit programme in Australia
Abstract:
A widely held view is that immigrants contribute to public debt through
their over representation in the unemployment benefit programme. An
empirical investigation, based on the 1990 Income Distribution Survey,
finds support for this view. In contrast to the US and Canadian studies,
this paper observes that the probability of receiving unemployment
benefits is higher for immigrants than the native-born population and
immigrants, who participate in the unemployment benefit programme, also
receive a greater amount of unemployment benefits.
Journal: Applied Economics
Pages: 1587-1597
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010014021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014021
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1587-1597
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Lim
Author-X-Name-First: Christine
Author-X-Name-Last: Lim
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Title: Cointegration analysis of quarterly tourism demand by Hong Kong and Singapore for Australia
Abstract:
Hong Kong and Singapore are two of the most important and fastest growing
markets for tourists to Australia. The purpose of this paper is to
investigate movements in the long-run demand for tourist travel by these
two origin countries for Australia. Some of the leading macroeconomic
variables examined to explain tourism demand are incomes in Hong Kong and
Singapore, tourism prices in Australia, and transportation costs and
exchange rates between the two countries and Australia. Seasonally
unadjusted quarterly data are used for Hong Kong for the period
1975(1)-1996(4), and for 1980(4)-1996(4) for Singapore. Several proxy
variables are used for the incomes of tourists from Hong Kong and
Singapore to explain quarterly tourist arrivals to Australia. The
augmented Dickey-Fuller test for unit roots is examined in the univariate
framework, and Johansen's maximum likelihood procedure is used to test for
cointegration and to estimate the number of cointegrating vectors. Error
correction models are estimated to explain quarterly tourism demand by
Hong Kong and Singapore for Australia.
Journal: Applied Economics
Pages: 1599-1619
Issue: 12
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010014012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014012
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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1599-1619
Template-Type: ReDIF-Article 1.0
Author-Name: John Gandar
Author-X-Name-First: John
Author-X-Name-Last: Gandar
Author-Name: Richard Zuber
Author-X-Name-First: Richard
Author-X-Name-Last: Zuber
Author-Name: R. Stafford Johnson
Author-X-Name-First: R. Stafford
Author-X-Name-Last: Johnson
Title: Searching for the favourite-longshot bias down under: an examination of the New Zealand pari-mutuel betting market
Abstract:
This paper tests for the presence of the favourite-longshot bias in a new
setting. This bias #150 the tendency for bettors to underbet favourites
and overbet longshots #150 has been found in most studies of pari-mutuel
and bookmaking betting markets in the USA, the UK and Australia. However,
there is growing evidence that in at least some pari-mutuel betting
markets there is no favourite-longshot bias. This paper examines the
previously unexplored New Zealand pari-mutuel betting market on horse
races for evidence of this bias. Utilizing a large sample of recent New
Zealand thoroughbred horse races, it is found that while early, off-track
bettors price this bias into odds, late (on-and off-track) bettors
eliminate much of the bias by the close of betting. That is, the results
reinforce the view that not all pari-mutuel betting markets are
characterized by a favourite-longshot bias at the close of betting.
Evidence is also found that late bettors in this market are smart bettors.
Journal: Applied Economics
Pages: 1621-1629
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010012951
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010012951
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1621-1629
Template-Type: ReDIF-Article 1.0
Author-Name: Roope Uusitalo
Author-X-Name-First: Roope
Author-X-Name-Last: Uusitalo
Title: Homo entreprenaurus?
Abstract:
This paper examines the determinants of self-employment and transitions
from salaried employment to self-employment using two sets of Finnish data
from the 1990s. The results show that capital constraints have only a
minor effect on new business starts. Human capital, in the form of
intergenerational links in self-employment and psychological factors play
a much larger role. The paper also provides empirical evidence that less
risk-averse workers are more likely to become entrepreneurs.
Journal: Applied Economics
Pages: 1631-1638
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010015778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015778
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1631-1638
Template-Type: ReDIF-Article 1.0
Author-Name: Erkan Erdil
Author-X-Name-First: Erkan
Author-X-Name-Last: Erdil
Author-Name: I. Hakan Yetkiner
Author-X-Name-First: I. Hakan
Author-X-Name-Last: Yetkiner
Title: A comparative analysis of inter-industry wage differentials: industrialized versus developing countries
Abstract:
This study aims to compare the available evidence on inter-industry wage
structure for industrialized and developing countries and to find whether
the industry wage differentials are consistent and stable independent of
time and space. Moreover, it tries to clarify some of the determinants of
industry wage differentials. International evidence supports the wage
differential regularity across countries, and the factors underlying
inter-industry wage differentials are found to be more or less the same
for both industrialized and developing countries.
Journal: Applied Economics
Pages: 1639-1648
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010013608
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010013608
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1639-1648
Template-Type: ReDIF-Article 1.0
Author-Name: Dale Heien
Author-X-Name-First: Dale
Author-X-Name-Last: Heien
Title: Habit, seasonality, and time aggregation in consumer behaviour
Abstract:
Habitual behaviour in consumer demand analysis is generally portrayed via
some form of a lagged dependent variable model. The purpose of this paper
is to explore the implications for habit behaviour of time aggregation.
This is done by specifying both habit and seasonal components in demand
relations. The results indicate that much of what has traditionally been
identified as habitual behaviour is, in fact, seasonal effects.
Journal: Applied Economics
Pages: 1649-1653
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/000368401317035441
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368401317035441
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1649-1653
Template-Type: ReDIF-Article 1.0
Author-Name: Ziggy MacDonald
Author-X-Name-First: Ziggy
Author-X-Name-Last: MacDonald
Author-Name: Stephen Pudney
Author-X-Name-First: Stephen
Author-X-Name-Last: Pudney
Title: Illicit drug use and labour market achievement: evidence from the UK
Abstract:
This study, using data from the British Crime Survey (BCS), examines the
effect of drug use on occupational achievement. It starts by attempting to
overcome the identification problem that results from the limited set of
drug use questions presented in the BCS. Taking this into account, and
allowing for the endogeneity of drug use in equations for unemployment and
labour market outcomes, that a mild positive association with 'soft' drugs
and occupational achievement is observed that diminishes with age. This
relationship holds for males but not for females. In contrast, it is also
found that past use of 'hard' drugs significantly increases the likelihood
of current unemployment, although it appears to be unrelated to
occupational success, conditional on achieving employment.
Journal: Applied Economics
Pages: 1655-1668
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010014454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014454
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1655-1668
Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Ward
Author-X-Name-First: Melanie
Author-X-Name-Last: Ward
Title: The gender salary gap in British academia
Abstract:
This paper considers salary determination and the gender salary gap in
the academic labour market utilizing a particularly detailed data set of
academics from five old established Universities. Results reveal an
aggregate gender salary differential for academic staff of 15%. Most of
this differential can, however, be explained by our model. Evidence
suggests a limited opportunity for female academics to combine career and
family, despite the flexibility of an academic job and emphasizes the
importance of mobility to the male career. Publication record is found to
be an important determinant of salary.
Journal: Applied Economics
Pages: 1669-1681
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010014445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014445
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1669-1681
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Lurdes Castro Martins
Author-X-Name-First: Maria Lurdes Castro
Author-X-Name-Last: Martins
Title: Social welfare loss due to second-best pricing: an application to the Portuguese telecommunications
Abstract:
The telecommunications industry is usually characterized by low marginal
costs and significant fixed costs which are the conditions for the
inefficiency of marginal cost pricing. In such cases theory postulates
that optimal pricing is obtained by maximizing welfare subject to a
restriction of viability of the firm: the second-best pricing scheme. The
possible welfare losses due to second-best pricing varies according to the
values of marginal costs, prices and demand elasticities. This paper
analyses to what extent the second-best pricing has been achieved in the
Portuguese telecommunications firm CTT, over the period 1950#150;1984 as
well as the magnitude of the price-cost margins and welfare losses
created. We obtained empirical evidence of the presence of economies of
scale, a welfare loss estimate of 1% of the telecommunications receipts
and a result that price was 40% greater than marginal cost. We concluded
that price regulation and public ownership of the firm did not seriously
affect social welfare over the sample period (it should be noted that it
is the non-digital and fixedwire infrastructure period). Therefore, it is
important to study the impact of new digital and non-wire technologies and
new services provided in the old regulatory scenery.
Journal: Applied Economics
Pages: 1683-1687
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010014463
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010014463
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1683-1687
Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Colombo
Author-X-Name-First: Emilio
Author-X-Name-Last: Colombo
Title: Determinants of corporate capital structure: evidence from Hungarian firms
Abstract:
This paper investigates the capital structure of Hungarian firms using a
cross-section and a panel data approach. The data set is composed of
balance sheet data and information on market structure for 1100 firms from
1992 to 1996. Evidence is found of imperfections that constrain firms in
the achievement of their optimal capital structure, but also some positive
indications: there are no distortions typical of the planned system and no
signs of the presence of soft budget constraints.
Journal: Applied Economics
Pages: 1689-1701
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010015057
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015057
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1689-1701
Template-Type: ReDIF-Article 1.0
Author-Name: Khalid Yousif Khalafalla
Author-X-Name-First: Khalid Yousif
Author-X-Name-Last: Khalafalla
Author-Name: Alan Webb
Author-X-Name-First: Alan
Author-X-Name-Last: Webb
Title: Export-led growth and structural change: evidence from Malaysia
Abstract:
Many studies have tried to establish the causal link between export
expansion and economic growth. This contribution is to recognize that
structural changes will change the sources of growth and this will affect
the export-growth relationship. A country case study approach is used
focusing on Malaysia, a country with one of the world's highest sustained
growth rates and a long history of commodity trade. We use VAR analysis of
Malaysian quarterly trade and GDP growth from 1965 to 1996. Trade data are
disaggregated into primary and manufactures exports and causality tests
are applied to the entire period as well as two subperiods #150 the 1965
#1501980 period when policy emphasis was on import substitution and the
1981#1501996 period when policies favoured export-led growth. Statistical
tests confirm export-led growth for the full period and for the period to
1980 but tests on the 1981#1501996 period show growth causing exports.
Primary exports had a stronger direct impact on economic growth than
manufactures. The weakening support for export-led growth after Malaysia
shifted to an export-oriented development strategy is associated with
structural changes associated with industrialization. Interaction among
trade and growth variables becomes more complex with a broadening export
base and more diverse sources of growth.
Journal: Applied Economics
Pages: 1703-1715
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010015066
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015066
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1703-1715
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Gonzalo
Author-X-Name-First: Maria Teresa
Author-X-Name-Last: Gonzalo
Author-Name: Jan Saarela
Author-X-Name-First: Jan
Author-X-Name-Last: Saarela
Title: An evaluation of the management of the Finnish employment service
Abstract:
This paper analyses the efficiency of the Finnish Employment Service's
management in selecting unemployed individuals who are offered a job. The
database used considers short-term unemployed individuals who face the
same labour market conditions in 1996. Duration analysis with a Weibull
model has been performed in order to study the determinants of the
transition probability from unemployment into employment and the impact of
receiving job offers through the Employment Service (ES). In order to
carry this out, it has been taken into account that the reception of such
job offers may be endogenous because the ES selects the individuals who
will receive the offers. The empirical results suggest that the decisions
made by the ES are adequate in the sense that they increase the benefit of
society, compared with a random assignment of the vacancies offered
through the ES. Moreover, the effects of the other determinants depend on
whether the individual receives offers. The results also point out that
individuals who receive no offers through the ES are more likely, as time
passes by, to be discouraged in searching for a job than those who do.
Journal: Applied Economics
Pages: 1717-1725
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010015354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015354
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1717-1725
Template-Type: ReDIF-Article 1.0
Author-Name: Cliff Huang
Author-X-Name-First: Cliff
Author-X-Name-Last: Huang
Author-Name: Chien-Fu Jeff Lin
Author-X-Name-First: Chien-Fu Jeff
Author-X-Name-Last: Lin
Author-Name: Jen-Chi Cheng
Author-X-Name-First: Jen-Chi
Author-X-Name-Last: Cheng
Title: Evidence on nonlinear error correction in money demand: the case of Taiwan
Abstract:
This paper proposes a nonlinear error-correction model based upon smooth
transition regression methodology. The model is specified such that the
short-run adjustment toward long-run equilibrium is nonlinear and that the
error correction is a smooth function of long-run deviation. Empirical
results obtained from estimating M2 money demand in Taiwan support the
hypothesis of a nonlinear error-correction process and provide better
interpretation of change in the demand for money.
Journal: Applied Economics
Pages: 1727-1736
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010017631
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017631
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1727-1736
Template-Type: ReDIF-Article 1.0
Author-Name: Amy Basile
Author-X-Name-First: Amy
Author-X-Name-Last: Basile
Author-Name: Joseph Joyce
Author-X-Name-First: Joseph
Author-X-Name-Last: Joyce
Title: Asset bubbles, monetary policy and bank lending in Japan: an empirical investigation
Abstract:
Asset prices rose rapidly in Japan during the latter half of the 1980s,
and then declined as quickly in the early 1990s. Their behaviour is
consistent with the existence of speculative 'bubbles' in these markets.
This paper investigates the dynamic relationships among stock and land
prices in Japan, output, and monetary and bank lending variables. The
results of causality tests and variance decompositions are reported for
two time periods, 1972#1501985 and 1986#1501991. The price bubbles
affected each other in the first period, although the size of this impact
is dependent on the choice of variables in the VARs. In the bubble period,
there is strong evidence that the stock market bubble was determined by
its own past and also influenced the land market bubble, accounting for a
significant proportion of the variance of the land market bubble. However,
neither output, the money supply nor the lending variables were
significant in the causality tests or in explaining the variation of the
two assset bubbles.
Journal: Applied Economics
Pages: 1737-1744
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010018621
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010018621
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Template-Type: ReDIF-Article 1.0
Author-Name: Gyan Pradhan
Author-X-Name-First: Gyan
Author-X-Name-Last: Pradhan
Author-Name: Kamal Upadhyaya
Author-X-Name-First: Kamal
Author-X-Name-Last: Upadhyaya
Title: The impact of budget deficits on national saving in the USA
Abstract:
This paper analyses the effect of government budget deficits on national
saving in the USA utilizing annual time series data from 1967 to 1996. A
model that includes budget deficits, money supply, real exchange rate,
real interest rate, and the proportion of working age population to total
population to explain national saving is developed. After examining the
time series properties of the data an error correction model is estimated.
The overall results suggest that an increase in government budget deficits
tend to reduce national saving. The working age population coming out of
the baby boom generation has positively contributed to an increase in
national saving.
Journal: Applied Economics
Pages: 1745-1750
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010020132
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010020132
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1745-1750
Template-Type: ReDIF-Article 1.0
Author-Name: Alistair Bruce
Author-X-Name-First: Alistair
Author-X-Name-Last: Bruce
Author-Name: Johnnie Johnson
Author-X-Name-First: Johnnie
Author-X-Name-Last: Johnson
Title: Efficiency characteristics of a market for state contingent claims
Abstract:
This paper concludes that a market for state-contingent claims (UK
horserace betting) displays evidence of pervasive but heterogeneous forms
of inefficiency, in significant contrast to earlier investigations. Using
hitherto unavailable data, comparison of notional returns implicit in
parallel sets of bookmaker and parimutuel odds identifies inefficiency in
terms of zones of distinct but contrasting forms of cross-;market returns
differential. The inefficiency is rationalized in terms of both buyer and
supplier behaviour; its durability is explained in terms of limited
arbitrage opportunities.
Journal: Applied Economics
Pages: 1751-1754
Issue: 13
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840110052785
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110052785
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Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1751-1754
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Smith
Author-X-Name-First: Martin
Author-X-Name-Last: Smith
Title: Breeding incentive programmes and demand for California thoroughbred racing: is there a quality/quantity tradeoff?
Abstract:
Both quantity of horses and quality stimulate demand for horse race
gambling. This paper addresses the potential for a quantity/quality
tradeoff due to breeding incentives for California thoroughbreds.
Econometric analysis is used to assess the demand for quality and quantity
of horses, and results suggest the likely net benefit of breeding
incentives on the industry at large.
Journal: Applied Economics
Pages: 1755-1762
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010019675
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010019675
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1755-1762
Template-Type: ReDIF-Article 1.0
Author-Name: Julian Morgan
Author-X-Name-First: Julian
Author-X-Name-Last: Morgan
Title: Employment security and the demand for labour in Europe
Abstract:
This paper analyses the impact of employment security on labour demand.
The approach taken is to estimate a dynamic labour demand function that
allows for the effect of changes in a measure of employment security
derived from surveys of employers. The estimation uses panel data on
employment (both in terms of the total number of employees and total hours
worked) for seven European countries for the period 1981-1994. The results
suggest that employment security can have significant effects in slowing
down the dynamic adjustment of labour demand. The paper also finds some
(less robust) evidence that employment security can increase the long run
level of labour demand in terms of total hours, but not the number of
persons employed.
Journal: Applied Economics
Pages: 1763-1774
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010017659
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017659
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1763-1774
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Burton
Author-X-Name-First: Michael
Author-X-Name-Last: Burton
Author-Name: Richard Dorsett
Author-X-Name-First: Richard
Author-X-Name-Last: Dorsett
Title: The degree of monopsony power in agricultural labour markets, and the impact of the agricultural minimum wage: an application to craft workers in England and Wales
Abstract:
This paper uses cross-section data to examine the determinants of wages
for agricultural craft workers over the period 1991-1994. Using limited
dependent variable models to take account of the censoring in the data
resulting from the minimum wage, we have investigated the degree to which
agricultural and broader labour markets are integrated, the impact of tied
housing on wages, and the extent to which the minimum wage truncates the
wage distribution.
Journal: Applied Economics
Pages: 1775-1784
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010017668
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017668
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1775-1784
Template-Type: ReDIF-Article 1.0
Author-Name: Lindsay Meredith
Author-X-Name-First: Lindsay
Author-X-Name-Last: Meredith
Author-Name: Dennis Maki
Author-X-Name-First: Dennis
Author-X-Name-Last: Maki
Title: Product cannibalization and the role of prices
Abstract:
The role of brand prices in contributing to product cannibalization is
examined. Price elasticities and reference price theory are used to
provide a theoretical foundation and empirical test for the impact of a
firm's cheap brand on one of its expensive brands. Results are consistent
with the conclusion that the market share of the company's premium brand
was cannibalized by a growth in sales of its cheap brand.
Journal: Applied Economics
Pages: 1785-1793
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010015769
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010015769
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1785-1793
Template-Type: ReDIF-Article 1.0
Author-Name: C. Couharde
Author-X-Name-First: C.
Author-X-Name-Last: Couharde
Author-Name: J. Mazier
Author-X-Name-First: J.
Author-X-Name-Last: Mazier
Title: The equilibrium exchange rates of European currencies and the transition to euro
Abstract:
The introduction of the euro raised two questions: what was the
appropriate exchange rate of the European currencies for entry in the EMU?
What were the main determinants of the external value of the euro? To
bring some insight in the matter, the concept of equilibrium exchange
rates was used, which illustrated the divergence between exchange rates
and long run fundamentals. For each country, the equilibrium exchange rate
was calculated from a simplified model of external trade which, in its
reduced form, allows one to explicitly represent the structural
determinants of exchange rates. To obtain supplementary results we also
make an analysis of unit cost levels. The results suggest that although
the central parities in force within the EMS were rather satisfactory and
ought not to give rise subsequently to intra-European tensions, the
European currencies were overvalued in terms of their equilibrium exchange
rates and the dollar was undervalued. This misalignment thus provides
support to justify the depreciation of the euro since its launch.
Journal: Applied Economics
Pages: 1795-1801
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010021717
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010021717
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1795-1801
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Romilly
Author-X-Name-First: Peter
Author-X-Name-Last: Romilly
Author-Name: Haiyan Song
Author-X-Name-First: Haiyan
Author-X-Name-Last: Song
Author-Name: Xiaming Liu
Author-X-Name-First: Xiaming
Author-X-Name-Last: Liu
Title: Car ownership and use in Britain: a comparison of the empirical results of alternative cointegration estimation methods and forecasts
Abstract:
This paper addresses two problems faced by many forecasters in the
transport sector, namely how to use a relatively small sample to forecast
car ownership over a long period of time and avoid the difficulties caused
by spurious or nonsense regressions. Five alternative estimation methods
are used to test for cointegrating relationships between per capita car
ownership (and use) and real per capita personable disposable income, real
motoring costs and real bus fares. These are the Engle-Granger two-stage,
the Phillips-Hansen fully modified, the Wickens-Breusch one-stage, the
autoregressive distributed lag, and the Johansen maximum likelihood
methods. The corresponding error correction models are estimated, and a
comparison made between the derived short- and long-run demand
elasticities for car ownership and use. The ex-post forecasting
performance of the error correction models, together with an ARIMA model
specification, is evaluated using a number of performance criteria. The
long-range time series forecasts obtained from the cointegrating
regressions are compared with those from the cross-sectional approach used
by the UK Department of the Environment, Transport and the Regions, and
the policy implications discussed.
Journal: Applied Economics
Pages: 1803-1818
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840011021708
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840011021708
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1803-1818
Template-Type: ReDIF-Article 1.0
Author-Name: Hilde Christiane Bjørnland
Author-X-Name-First: Hilde Christiane
Author-X-Name-Last: Bjørnland
Title: Identifying domestic and imported core inflation
Abstract:
This paper estimates core inflation in Norway, identified as that
component of inflation that has no long-run effect on GDP. The model
distinguishes explicitly between domestic and imported core inflation. The
results show that (domestic) core inflation is the main component of CPI
inflation. However, CPI inflation misrepresents core inflation during some
periods. The differences are well explained by the other shocks identified
in the model, in particular the oil price shocks of the 1970s when Norway
imported inflation, and the negative non-core (supply) shocks of the late
1980s, which pushed inflation up temporarily relative to core inflation.
Journal: Applied Economics
Pages: 1819-1831
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010017640
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017640
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1819-1831
Template-Type: ReDIF-Article 1.0
Author-Name: James Ko
Author-X-Name-First: James
Author-X-Name-Last: Ko
Author-Name: Carol Dahl
Author-X-Name-First: Carol
Author-X-Name-Last: Dahl
Title: Interfuel substitution in US electricity generation
Abstract:
Ongoing changes in the US electricity market include restructuring and
increased competition. With this unfettering of the market, the fuel
choice in generation is expected to become more flexible and responsive.
To investigate this hypothesis, studies of US electricity fuel choices
over the last three decades are summarized and the most recent analysis is
provided on a market very different from the one on which earlier studies
were done. Modern data handling techniques allow the consideration of the
most comprehensive database including 185 utilities on monthly data for
1993. This paper finds fuel choice to show a considerable amount of price
responsiveness, the amount of responsiveness is sensitive to the fuel
substitution possibilities within the utility, and the amount of
responsiveness seems to have increased recently for oil and natural gas.
Journal: Applied Economics
Pages: 1833-1843
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010021122
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010021122
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1833-1843
Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Gil Pareja
Author-X-Name-First: Salvador Gil
Author-X-Name-Last: Pareja
Title: Pricing to market in European automobile exports to OECD countries: a panel data approach
Abstract:
This paper investigates pricing to market behaviour using data for
European auto exports. The empirical analysis uses forward instead of spot
exchange rates. Cross-country and cross-product analyses reveal that
pricing behaviour depends mainly on the class of product, while the
country of origin and destination appears as less important. Furthermore,
the data do not usually reject the hypothesis of a symmetric response of
export prices to depreciations and appreciations of the exporter's
currency. Finally, although the point estimates confirm the combined
influence of the business cycle and the direction of the exchange rate
movements on pricing to market in most cases, formal tests seldom provide
statistical significance for this result.
Journal: Applied Economics
Pages: 1845-1856
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010020123
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010020123
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1845-1856
Template-Type: ReDIF-Article 1.0
Author-Name: David Giles
Author-X-Name-First: David
Author-X-Name-Last: Giles
Author-Name: Patrick Caragata
Author-X-Name-First: Patrick
Author-X-Name-Last: Caragata
Title: The learning path of the hidden economy: the tax burden and tax evasion in New Zealand
Abstract:
This paper considers the 'learning curve' relationship between the
aggregate tax rate and the relative size of the hidden economy in New
Zealand. Some simple non-linear models are estimated so that the effects
of changes in the effective tax rate on the underground economy can be
simulated. This study finds that about half of the hidden activity in New
Zealand is a learned response to changing opportunities and constraints in
fiscal policy, but this amount varies over the business cycle. Simulating
a zero tax rate permits us to discover the 'natural rate' of underground
and criminal activity. Some partial lessons are drawn for taxation policy
in that country.
Journal: Applied Economics
Pages: 1857-1867
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840110018720
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110018720
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1857-1867
Template-Type: ReDIF-Article 1.0
Author-Name: Matti Viren
Author-X-Name-First: Matti
Author-X-Name-Last: Viren
Title: Modelling crime and punishment
Abstract:
This paper provides an extended supply of labour model which allows for
different intensities of legal and illegal (criminal) activities and in
which criminal activities may be considered both as work and leisure.
Heterogeneity of individuals is also taken into account. The model is
estimated from Finnish aggregate time-series data, pooled Finnish
municipalities data and pooled international cross-country data. With the
Finnish aggregate data, a volume index of crime is constructed and then
used in testing the model. All empirical results give strong support to
the hypothesis that apprehension and punishment are important deterrents
of crime. By contrast, the role of sosioeconomic and demographic variables
turns out to be of little importance.
Journal: Applied Economics
Pages: 1869-1879
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010017677
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010017677
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1869-1879
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Title: A discrete-time hazard model of the adoption of legislative television: evidence from the US Congress, 1961-1986
Abstract:
The present study examines the probability of the adoption of legislative
television over time (1961-1986) in the US Congress using a discrete-time
hazard model. Against a theoretical construct where political services are
modelled as search/experience goods, evidence is provided suggesting that
constituent homogeneity, relative power struggles involving the
legislative branches of Congress and the White House, and the potential
prowess of legislators in Congress regarding skilful use of television are
all important facets in this probability model. Use of alternative data
sources and statistical techniques, such as those presented here, works to
provide a greater foundation of knowledge regarding the relationship
between representative democracy and modern means of communication.
Journal: Applied Economics
Pages: 1881-1887
Issue: 14
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010018252
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010018252
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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1881-1887
Template-Type: ReDIF-Article 1.0
Author-Name: Anindya Banerjee
Author-X-Name-First: Anindya
Author-X-Name-Last: Banerjee
Title: Industry structure and the dynamics of price adjustment
Abstract:
Using annual US data for gross domestic product originating by sector
between 1947 and 1997 it is shown that a negative long-run relationship
between inflation and the markup is present across the sectors as well as
in the aggregate data. A preliminary explanation based on industry
structure is explored for the relative sizes of the impact of inflation on
the markup in the long-run for the various sectors.
Journal: Applied Economics
Pages: 1889-1901
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010021131
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010021131
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1889-1901
Template-Type: ReDIF-Article 1.0
Author-Name: G. R. Arabsheibani
Author-X-Name-First: G. R.
Author-X-Name-Last: Arabsheibani
Author-Name: A. Marin
Author-X-Name-First: A.
Author-X-Name-Last: Marin
Title: Self-selectivity bias with a continuous variable: potential pitfall in a common procedure
Abstract:
When the choice variable is continuous, selectivity bias can in principle
be dealt with by a procedure first suggested by Garen (1984). However,
work reported in this paper on the estimation of hedonic wage equations
with compensation for dangerous jobs, where selectivity bias could arise
through the endogenous choice of jobs according to their riskiness,
suggests that the Garen technique may not be robust. The lack of
robustness comes from collinearity, which is a result of the common
situation where the empirical fit of the choice equation is moderately
successful but not outstanding.
Journal: Applied Economics
Pages: 1903-1910
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010021726
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010021726
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1903-1910
Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Fare
Author-X-Name-First: Rolf
Author-X-Name-Last: Fare
Author-Name: Shawna Grosskopf
Author-X-Name-First: Shawna
Author-X-Name-Last: Grosskopf
Author-Name: Wen-Fu Lee
Author-X-Name-First: Wen-Fu
Author-X-Name-Last: Lee
Title: Productivity and technical change: the case of Taiwan
Abstract:
This paper analyses productivity growth in 16 of Taiwan's manufacturing
industries during the period 1978-1992. The non-parametric Data
Envelopment Analysis approach is used to compute Malmquist productivity
indexes. These are decomposed into efficiency change and technical change.
The latter is further decomposed into an output bias, an input bias and a
magnitude component. In addition, the direction of input bias is
identified. Empirical results indicate that the sector's TFP increased at
a rate of 2.89% per annum, which could be ascribed to a technical progress
(2.56%) and an efficiency improvement (0.33%).
Journal: Applied Economics
Pages: 1911-1925
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010018711
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010018711
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1911-1925
Template-Type: ReDIF-Article 1.0
Author-Name: John Baffes
Author-X-Name-First: John
Author-X-Name-Last: Baffes
Author-Name: Mohamed Ihsan Ajwad
Author-X-Name-First: Mohamed Ihsan
Author-X-Name-Last: Ajwad
Title: Identifying price linkages: a review of the literature and an application to the world market of cotton
Abstract:
This paper reviews the literature of price linkages and examines the
degree to which cotton prices are linked; it also tests whether such
linkages have improved over the last decade. It concludes that the degree
of linkage has improved over the last decade while the main source of this
improvement appears to be a result of short-run price transmission and to
a lesser extent long-run co-movement.
Journal: Applied Economics
Pages: 1927-1941
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010023788
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010023788
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1927-1941
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Tongzon
Author-X-Name-First: Jose
Author-X-Name-Last: Tongzon
Title: China's membership in the World Trade Organization (WTO) and the exports of the developing economies of East Asia: a computable general equilibrium approach
Abstract:
There is a general perception particularly among the developing countries
of East Asia that China's WTO membership would spell bad news for their
exports. The ASEAN countries in particular are quite concerned about its
likely negative impact on their export and growth potentials. In this
light, the main objective of this paper is to empirically assess the trade
implications of China's WTO membership for these countries. Only few
studies, using a Computable General Equilibrium (CGE) approach, have
addressed the issue of China's WTO membership trade implications. Further,
these studies have not adequately addressed the issue from the perspective
of the developing countries of East Asia, particularly the ASEAN
countries. Using the latest version of the Global Trade Analysis Project
(GTAP) model and based on the latest tariff reduction commitments by
China, the results showed that, contrary to the current perception and
previous studies, almost all of the developing countries of East Asia are
likely to benefit from China's WTO membership overall, after allowing for
anticipated price adjustments. Without the price adjustments, the
Philippines and Singapore would have come out as net losers. These
findings have confirmed the need for economic and export restructuring
among the ASEAN countries and the importance of accelerating their
economic integration. They have also highlighted the importance of
promoting trade and investment cooperation between China and ASEAN
countries.
Journal: Applied Economics
Pages: 1943-1959
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840110069354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110069354
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1943-1959
Template-Type: ReDIF-Article 1.0
Author-Name: George Bitros
Author-X-Name-First: George
Author-X-Name-Last: Bitros
Author-Name: Epaminondas Panas
Author-X-Name-First: Epaminondas
Author-X-Name-Last: Panas
Title: Is there an inflation-productivity trade-off? Some evidence from the manufacturing sector in Greece
Abstract:
This paper examines the effect of inflation on total factor productivity
growth (TFP), using time-series data for every two digit Greek
manufacturing industries. In order to do the above a translog flexible
cost function is estimated and used to decompose TFP growth into scale
economies, inflation and technical change. The advantage of estimating a
very general and flexible cost function is that it allows us, for the
first time, to examine empirically a large number of significant
relationships between TFP growth and economies of scale, inflation and
technical change. The main conclusion drawn from this analysis is that
inflation reduces TFP growth in a way, which is sizeable. Furthermore,
using standard causality test the direction of causality between inflation
and TFP growth was tested at the manufacturing level.
Journal: Applied Economics
Pages: 1961-1969
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840110043730
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110043730
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1961-1969
Template-Type: ReDIF-Article 1.0
Author-Name: John Hayfron
Author-X-Name-First: John
Author-X-Name-Last: Hayfron
Title: Language training, language proficiency and earnings of immigrants in Norway
Abstract:
This paper uses a simple probit model to determine the impact of language
training on the language proficiency of Third World immigrant men in
Norway. It also estimates the labour market returns to Norwegian language
proficiency. The results show that immigrants who participate in language
training programme are more likely to acquire speaking and reading
proficiencies in Norwegian language than those who do not. Contrary to
expectation, language proficiency has no significant effect on immigrants'
earnings. A probable explanation may be that immigrants need Norwegian
language proficiency to get into jobs in the Norwegian labour market. Once
they are in employment, their wages are not necessarily determined by
their proficiency in Norwegian. Consistent with the assimilation
hypothesis, earlier waves of immigrants have higher earnings than do more
recent waves, and part of the initial earnings deficit experienced by more
recent immigrants can be attributed to language deficiency. There was no
evidence of sample selection bias in the earnings equation.
Journal: Applied Economics
Pages: 1971-1979
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010018630
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010018630
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1971-1979
Template-Type: ReDIF-Article 1.0
Author-Name: Allen Lynch
Author-X-Name-First: Allen
Author-X-Name-Last: Lynch
Author-Name: David Rasmussen
Author-X-Name-First: David
Author-X-Name-Last: Rasmussen
Title: Measuring the impact of crime on house prices
Abstract:
This paper uses data on over 2800 house sales in Jacksonville, FL to
estimate the impact of crime on house prices. A GIS programme is used to
develop neighbourhood characteristics that are unique to each observation.
Crime data, available for 89 police beats are assigned to each
observation. Weighting the seriousness of offences by the cost of crime to
victims is used as an alternative to the customary measures of the number
of index crimes. The cost of crime has virtually no impact on house prices
overall, but homes are highly discounted in high crime areas.
Journal: Applied Economics
Pages: 1981-1989
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840110021735
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110021735
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1981-1989
Template-Type: ReDIF-Article 1.0
Author-Name: Dene Hurley
Author-X-Name-First: Dene
Author-X-Name-Last: Hurley
Author-Name: Rolando Santos
Author-X-Name-First: Rolando
Author-X-Name-Last: Santos
Title: Exchange rate volatility and the role of regional currency linkages: the ASEAN case
Abstract:
As the economies of the Association of Southeast Asian Nations (ASEAN)
have moved towards closer economic ties and trade integration in recent
years, the establishment of exchange rate stability is becoming an
important regional policy concern, particularly in the wake of the Asian
currency crisis of 1997. This paper examines the exchange rate volatility
of the currencies of Indonesia, Malaysia, Philippines, Singapore and
Thailand between 1974 and 1999. Using variance decomposition (VDC) methods
and impulse response functions, which are VAR-related estimation
techniques, the study also investigates the regional currency linkages
which may have played a role in transmitting exchange rate fluctuations.
The results indicate that, in spite of the adoption of the crawling peg
exchange regime following the breakup of the Bretton Woods system, all of
the five ASEAN currencies experienced volatility, with the Indonesian
rupiah posting the highest volatility level. The switch to de facto
pegging against the US dollar in the mid-1980s helped to stabilize all
ASEAN currencies with the exception of the Malaysian ringgit. Each of the
five currencies became more susceptible to instabilities in other ASEAN
currencies in the post-1985 period. Consistent with the experience of the
Asian currency crisis, the Thai baht was the main channel through which
regional currency fluctuations were transmitted.
Journal: Applied Economics
Pages: 1991-1999
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010023779
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010023779
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1991-1999
Template-Type: ReDIF-Article 1.0
Author-Name: F. Javier Trivez
Author-X-Name-First: F. Javier
Author-X-Name-Last: Trivez
Title: Analysis of the long-term relationships of the underlying rates of inflation in the EMU member states
Abstract:
The aim of this paper is to analyse whether or not there is a long-term
stable equilibrium relationship between the underlying rates of inflation
of the member states that have adhered to Economic and Monetary Union
(EMU). This longterm equilibrium represents an essential requirement for
compliance with the convergence criterion of price stability, through
which it is possible to guarantee the maintenance of the levels of
relative competitiveness of these member states. To that end, the concept
of underlying inflation is defined, obtained on the basis of the
trend-cycle component of the consumer price series, having first
eliminated the calendar and Easter effects, as well as the outliers, from
these original series. After applying a bivariate cointegration test to
these components, essentially pessimistic conclusions are obtained with
respect to compliance with the said stability criterion.
Journal: Applied Economics
Pages: 2001-2007
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010024291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010024291
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:2001-2007
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Buckley
Author-X-Name-First: Peter
Author-X-Name-Last: Buckley
Author-Name: Jane Frecknall Hughes
Author-X-Name-First: Jane Frecknall
Author-X-Name-Last: Hughes
Title: Incentives to transfer profits: a Japanese perspective
Abstract:
This paper forms one of a series examining aspects of transfer pricing
from a Japanese perspective. In earlier work the authors examined
prevalent allegations that global companies, especially Japanese
multinationals, operated transfer pricing policies to the deliberate
disadvantage of host countries by artificially locating profits in
jurisdictions where a tax advantage could be obtained. There would appear
to be considerable evidence to suggest that obtaining a tax advantage is
not the primary reason for adopting any particular transfer pricing
policy. This is especially true in the case of certain Japanese companies,
the transfer pricing policies of which result in effective transfers of
profits back to their home base in Japan, where tax rates are relatively
high. In earlier work it was initially suggested that this homeward
transfer of profits was a consequence of following different costing
principles and operating within a different business culture. This paper
will explore further these reasons and attempt to analyse why such
companies actively seek to undertake foreign direct investment, yet do not
exploit transfer pricing opportunities in ways which have been open to
them.
Journal: Applied Economics
Pages: 2009-2015
Issue: 15
Volume: 33
Year: 2001
X-DOI: 10.1080/00036840010024435
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010024435
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Handle: RePEc:taf:applec:v:33:y:2001:i:15:p:2009-2015
Template-Type: ReDIF-Article 1.0
Author-Name: W. S. Chao
Author-X-Name-First: W. S.
Author-X-Name-Last: Chao
Author-Name: J. Buongiorno
Author-X-Name-First: J.
Author-X-Name-Last: Buongiorno
Title: Exports and growth: a causality analysis for the pulp and paper industries based on international panel data
Abstract:
This study examines the causal relations between exports and domestic
production in the pulp and paper industries. The issue is whether exports
are the engine of growth, or whether exports follow growth. The data were
time-series of the 15 main exporting countries between 1961 and 1995. The
method was Granger-causality analysis with error correction, based on
models estimated in three ways: ordinary least squares by country, least
squares with dummy variables (LSDV), and seemingly unrelated regression.
Regardless of method, the strongest relation was an instantaneous (within
a year) feedback between exports and production. The LSDV results implied
average multipliers across countries of 1.2 to 1.4 from exports to
production, and 0.20 to 0.25 from production to exports, in both
industries. Experiments with monthly data on the pulp industries of Canada
and the USA showed that temporal aggregation could affect the
Granger-causality test results.
Journal: Applied Economics
Pages: 1-13
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010027531
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010027531
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:1-13
Template-Type: ReDIF-Article 1.0
Author-Name: Hong Bo
Author-X-Name-First: Hong
Author-X-Name-Last: Bo
Author-Name: Gerard Kuper
Author-X-Name-First: Gerard
Author-X-Name-Last: Kuper
Author-Name: Robert Lensink
Author-X-Name-First: Robert
Author-X-Name-Last: Lensink
Author-Name: Elmer Sterken
Author-X-Name-First: Elmer
Author-X-Name-Last: Sterken
Title: Dutch inventory investment: are capital market imperfections relevant?
Abstract:
This paper analyses inventory investment using a balanced panel of 82
Dutch firms. We start from the Lovell (1961) inventory model and amend it
with cash flow to introduce capital market imperfections. The empirical
evidence provides support for the relevance of capital market
imperfections in explaining Dutch inventory investment. The results
suggest that cash flow is a relevant variable omitted from the original
Lovell model. The study provides a better understanding of inventory
behaviour in general.
Journal: Applied Economics
Pages: 15-22
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010025128
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025128
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:15-22
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bohm
Author-X-Name-First: B.
Author-X-Name-Last: Bohm
Author-Name: A. Gleiss
Author-X-Name-First: A.
Author-X-Name-Last: Gleiss
Author-Name: M. Wagner
Author-X-Name-First: M.
Author-X-Name-Last: Wagner
Author-Name: D. Ziegler
Author-X-Name-First: D.
Author-X-Name-Last: Ziegler
Title: Disaggregated capital stock estimation for Austria - methods, concepts and results
Abstract:
Based on a survey of the appropriate literature and on separate
investigations concerning distributions of asset lives and depreciation
patterns of vehicles, gross and net capital stocks as well as depreciation
at constant prices and at replacement cost have been estimated for Austria
using the Perpetual Inventory Method. The problem of the limited length of
investment time series has tried to be overcome by assigning a fixed age
to each initial stock. The level of disaggregation for the calculations is
ONACE 2-digit2 and this has been further broken down to the categories
buildings, machinery and equipment, and vehicles. All available a priori
knowledge and data have been incorporated. All estimates of capital stocks
and depreciation based on industry level investment data are subject to
uncertainty due to the lack of information at the asset type level. In
order to give a quantitative assessment of this uncertainty, for the
public as well as for the private enterprise sector, several scenarios
have been calculated. In addition a thorough sensitivity analysis with
respect to all relevant parameters including the age assigned to the
initial stock has been performed.
Journal: Applied Economics
Pages: 23-37
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010027559
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010027559
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:23-37
Template-Type: ReDIF-Article 1.0
Author-Name: Owen Phillips
Author-X-Name-First: Owen
Author-X-Name-Last: Phillips
Author-Name: Lori Phillips
Author-X-Name-First: Lori
Author-X-Name-Last: Phillips
Title: The market for academic journals
Abstract:
Library journal subscriptions are treated as a public good. A monopoly
publisher sells subscriptions to both libraries and individuals. For
individuals, the journal is a private good. Profit maximization can lead
to high institutional prices and few individual subscribers. This outcome
is reinforced by increases in publishing costs. Library serial prices fall
if patrons pay access costs and/or there is congestion. Data are presented
to support these conclusions. Library prices are two to ten times higher
than private prices; there are as few as two to four individual
subscribers in an academic journal market. Library subscription prices are
directly related to the number of consumers who use the library serial.
Journal: Applied Economics
Pages: 39-48
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010029476
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010029476
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:39-48
Template-Type: ReDIF-Article 1.0
Author-Name: Nadeem Burney
Author-X-Name-First: Nadeem
Author-X-Name-Last: Burney
Title: Wagner's hypothesis: evidence from Kuwait using cointegration tests
Abstract:
This paper investigates the relationship between public expenditure and a
number of socioeconomic variables, including the level of income, in
Kuwait. A general form of the public expenditure function is formulated
and recent developments in time series econometrics, including unit roots
and cointegration tests, and an error-correction model are used. Given the
characteristics of the economy, alternative measures for each variables
are used. The analysis in the paper is based on time-series data covering
the period from 1969/70 to 1994/95. In general, the findings lend little
support to the existence of long-run equilibrium relationship between
public expenditure and the socioeconomic variables, and the evidence does
not lend support to the validity of Wagner's law in Kuwait.
Journal: Applied Economics
Pages: 49-57
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010027540
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010027540
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:49-57
Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton
Author-X-Name-First: James
Author-X-Name-Last: Thornton
Title: Estimating a health production function for the US: some new evidence
Abstract:
This study reports some new evidence on the impact of medical care,
socioeconomic, lifestyle and environmental factors on the health status of
the population of the USA. The results show that additional medical care
utilization is relatively ineffective in lowering mortality and increasing
life expectancy. The most important factors that influence death rates are
related to socioeconomic status and lifestyle. The results suggest that
health care policy which focuses primarily on the provision of medical
care services and ignores larger economic and social considerations may do
little to benefit the nation's health.
Journal: Applied Economics
Pages: 59-62
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010025650
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025650
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:59-62
Template-Type: ReDIF-Article 1.0
Author-Name: Jang Jin
Author-X-Name-First: Jang
Author-X-Name-Last: Jin
Title: Exports and growth: is the export-led growth hypothesis valid for provincial economies?
Abstract:
This paper re-examines the export-led growth hypothesis using provincial
data. Unlike other studies that concentrate on country-level data, this
study investigates the validity of the hypothesis for four largest
provinces in Korea: Seoul, Kyunggee, Kyungnam, and Pusan. The causal
implication of the export-led growth hypothesis is generally supported for
all provinces in the sample. The framework of analysis is two- and
four-variable autoregressive models that include provincial exports,
provincial output, terms of trade, and national output shocks. Granger
causal orderings from exports to output growth are generally supported in
bivariate causal models. In multivariate models, variance decompositions
and impulse response functions further indicate that export growth has a
significant impact on output growth for all provinces although a feedback
effect from output to export growth appears in Seoul and the Kyungnam
province.
Journal: Applied Economics
Pages: 63-76
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010025632
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025632
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:63-76
Template-Type: ReDIF-Article 1.0
Author-Name: Nakil Sung
Author-X-Name-First: Nakil
Author-X-Name-Last: Sung
Title: Measuring embodied technical change in the US local telephone industry
Abstract:
This study attempts to measure the rate of embodied technical change by
using a short-run variable cost function that contains arguments for
labour and capital quality. In this short-run variable cost model, the
expansion of the amount of physical capital increases variable costs due
to more maintenance outlays, and then it leads to improvements in capital
quality. When a measure of competition is included as a proxy for
organizational efficiency, improvements in labour and capital quality
explain more than two-thirds of productivity growth. The degree of returns
to scale and the shadow cost of capital input in the embodiment cost model
are presented as well. The study is based on pooled time-series and
cross-section data of eight US local exchange carriers.
Journal: Applied Economics
Pages: 77-85
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010025100
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025100
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:77-85
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Law
Author-X-Name-First: Stephen
Author-X-Name-Last: Law
Title: The problem of market size for Canadian cable television regulation
Abstract:
The policy of the Canadian radio television and telecommunications
commission of awarding an exclusive right to provide cable television
(CATV) service within a given licensed service area (LSA) rests partly on
the presumption that CATV costs reflect economies of scale that are large
relative to market size. Cost estimates from crosssections of CATV
operations from 1985-1991 show increasing returns to scale and suggest
that many LSAs were too small to capture these economies. The results also
indicate that economies of scale for basic service declined over the 1980s
and that the 'natural monopoly' characteristics of CATV may be eroded by
further technological and regulatory changes.
Journal: Applied Economics
Pages: 87-99
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010025092
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025092
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:87-99
Template-Type: ReDIF-Article 1.0
Author-Name: D. M. Nachane
Author-X-Name-First: D. M.
Author-X-Name-Last: Nachane
Author-Name: R. Lakshmi
Author-X-Name-First: R.
Author-X-Name-Last: Lakshmi
Title: Dynamics of inflation in India - a P-Star approach
Abstract:
P-Star models have become increasingly popular in recent years in
developed countries. However data constraints have limited their
applicability to the LDCs. In this paper, such a model is attempted for
India using both annual and quarterly data for the period 1955-1995. It is
found that velocity in India is trend stationary and using cointegration
techniques it is then possible to develop a model to gauge inflationary
pressures in the economy. The model is well calibrated to data, and in
out-of-sample forecasts, it significantly outperforms a seasonal ARMA
benchmark model. The velocity gap version of the model is particularly
successful.
Journal: Applied Economics
Pages: 101-110
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010020385
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010020385
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:101-110
Template-Type: ReDIF-Article 1.0
Author-Name: Abdullah Al-Obaidan
Author-X-Name-First: Abdullah
Author-X-Name-Last: Al-Obaidan
Title: Efficiency effect of privatization in the developing countries
Abstract:
Privatization gained considerable momentum in the developing world in the
1980s. The motives were many, but the hope for higher economic efficiency
underlined the expectations of the implementing governments and agencies
in the developing countries. While the merits of a market-based economic
system are well established under certain theoretical conditions, far less
is known of its empirical relevance in the developing world. Yet, to the
best of the author's knowledge, no empirical study has examined the
macro-efficiency effect of privatization in the developing countries.
Studies concerned with this issue often limit themselves to the impact of
privatization at the firm level for a small number of companies and
countries. Thus, the current study is an attempt to provide a systematic
quantitative measure of the magnitude of the macroeconomic effect of
privatization in 45 developing countries. Using the concept of frontier
production function, efficiency differences between developing countries
with differing degrees of private sector contribution in the economy are
estimated. The empirical findings suggest, ceteris paribus, that
developing countries can increase the utility of their national resources
by approximately 45% simply by converting to market-based economies.
Journal: Applied Economics
Pages: 111-117
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010007948
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010007948
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:111-117
Template-Type: ReDIF-Article 1.0
Author-Name: M. T. Alguacil
Author-X-Name-First: M. T.
Author-X-Name-Last: Alguacil
Author-Name: V. Orts
Author-X-Name-First: V.
Author-X-Name-Last: Orts
Title: A multivariate cointegrated model testing for temporal causality between exports and outward foreign investment: the Spanish case
Abstract:
Historically, outward foreign direct investment has been contemplated as
an alternative way of firms' internationalization. In this line, a
relational substitution between exports and foreign direct investment
would be expected. However, this seems to contrast with recent
developments in the 'new trade theory' which show that the volume of trade
and the emergence of multinational firms may be positively related one to
the other. This paper investigates if some empirical evidence exists
either supporting a substitution or a complementary relationship between
both forms of internationalization. With this aim, an aggregate time
series approach was adopted using quarterly aggregate data (seasonal
adjusted) from the Spanish economy covering the period 1970.I-1992.III. A
vector autoregressive model was employed for both multivariate
cointegration analysis and Granger temporal causality testing. The
strength and direction of causal relationships are shown through the
dynamic variance decomposition and the impulse response technique. Once
controlling for relative market size and prices, the results provide
evidence of a positive long-term Granger causality going from foreign
direct investment to exports, although not in the opposite direction.
Journal: Applied Economics
Pages: 119-132
Issue: 1
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110046818
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046818
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Handle: RePEc:taf:applec:v:34:y:2002:i:1:p:119-132
Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Linden
Author-X-Name-First: Mikael
Author-X-Name-Last: Linden
Title: Trend model testing of growth convergence in 15 OECD countries, 1946-1997
Abstract:
A framework based on a linear deterministic trend function is introduced
in order to model growth convergence. The approach is a practical solution
to the nonlinearity and nonstationarity found in the convergence of
output-per-capita gaps between the USA and 14 OECD countries in 1946-1997.
Convergence is found to be a typical feature of European OECD countries
and Japan, but for some major countries it altered since the beginning of
1980. Some evidence of divergence exists too. Valid statistical inference
on trend-growth estimates is based on sample-size standardized t - and
Wald-test statistics, since the model residuals are close to I(1).
Small-sample test values are derived using bootstrap methods.
Journal: Applied Economics
Pages: 133-142
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010025119
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025119
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:133-142
Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Mohanty
Author-X-Name-First: Madhu
Author-X-Name-Last: Mohanty
Title: A bivariate probit approach to the determination of employment: a study of teen employment differentials in Los Angeles County
Abstract:
Following a bivariate probit approach and using the 1990 Public Use
Microdata Samples (PUMS) for Los Angeles County, this study shows that the
employment of teenage workers depends on both the worker's participation
decision as well as the employer's hiring decision. Omission of the role
of participation decision from the estimation of employment probability
yields misleading evidence of hiring discrimination against Blacks. This
evidence, however, disappears when the participation and hiring equations
are estimated jointly in a bivariate framework. The study finds no
evidence of discrimination against females and Latinos. In addition, the
study shows that family, household and neighbourhood characteristics play
significant roles in the determination of teen employment.
Journal: Applied Economics
Pages: 143-156
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010028585
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010028585
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:143-156
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Chiang
Author-X-Name-First: Eric
Author-X-Name-Last: Chiang
Author-Name: Djeto Assane
Author-X-Name-First: Djeto
Author-X-Name-Last: Assane
Title: Software copyright infringement among college students
Abstract:
In recent years, the issue of infringement in the software industry has
gained international attention as the demand for software continues to
grow. The growing presence of unauthorized reproduction of copyrighted
products inhibits full potential growth and discourages creative activity.
This study analyses the extent of software copyright infringement among
college students and attitudes of these students with regard to risk of
apprehension and conviction. This study finds a significantly higher
likelihood of infringement for computer majors and male students, and a
decrease in the likelihood of infringement for older students. This study
also uncovers differences in attitudes toward risk of apprehension and
conviction between majors in scientific fields and those in business and
economics. Whereas the first group of majors appears to exhibit risky
behaviour, the latter tends to be more risk averse.
Journal: Applied Economics
Pages: 157-166
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/000368400110034253
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368400110034253
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:157-166
Template-Type: ReDIF-Article 1.0
Author-Name: R. Todd Jewell
Author-X-Name-First: R. Todd
Author-X-Name-Last: Jewell
Author-Name: Robert Brown
Author-X-Name-First: Robert
Author-X-Name-Last: Brown
Author-Name: Scott Miles
Author-X-Name-First: Scott
Author-X-Name-Last: Miles
Title: Measuring discrimination in major league baseball: evidence from the baseball hall of fame
Abstract:
This paper examines the effects of race on player induction into the
National Baseball Hall of Fame, concentrating on a player's first ballot.
Past research has found some evidence of discrimination in voting against
retired Major League Baseball players who were born in a Latin American
country and against American-born black players. This study finds that
estimates of discrimination in Hall of Fame voting are sensitive to
specification. However, we do find limited evidence that retired players
who are both black and Latin face some voting discrimination. Furthermore,
the results show that race does not seem to affect whether a player
actually receives enough votes to get into the Hall of Fame on his first
ballot. Instead, it appears that any discrimination in voting is
concentrated among those players who would not have received enough votes
to enter the Hall of Fame based solely on their career statistics.
Journal: Applied Economics
Pages: 167-177
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010034244
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010034244
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:167-177
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Ayala
Author-X-Name-First: Luis
Author-X-Name-Last: Ayala
Author-Name: Rosa Martinez
Author-X-Name-First: Rosa
Author-X-Name-Last: Martinez
Author-Name: Jesus Ruiz-Huerta
Author-X-Name-First: Jesus
Author-X-Name-Last: Ruiz-Huerta
Title: Institutional determinants of the unemployment-earnings inequality trade-off
Abstract:
Most of the research efforts in recent years to explain international
differences in unemployment and earnings inequality have placed the
emphasis on the institutional components of the labour markets. The
purpose of this paper is to evaluate which are the real effects of these
characteristics on both phenomena using an ample set of data for different
OECD countries. A Cluster analysis permits consideration about relatively
heterogeneous models. The results of the econometric exercise show also
that institutional factors have a greater impact on earnings inequality
than on unemployment.
Journal: Applied Economics
Pages: 179-195
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010031464
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010031464
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:179-195
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Robles
Author-X-Name-First: Barbara
Author-X-Name-Last: Robles
Title: Revisiting the demand for money model: money and loans in selected manufacturing industries
Abstract:
Using a dynamic infinite horizon optimizing model, it is shown that the
empirical demand for money equation employed by a generation of applied
monetary researchers is a reduced form model of the dynamic Euler
equations for real money balances. The Euler equations derived in this
paper focus on the finance capital for the firm and consist of real money
balances (M1) and real business loans (F1) for selected manufacturing
industries. By employing explicit structural dynamic specification and
sectoral disaggregation, the question of how firms close the gap between
desired real money balances and actual real money balances is examined.
Model consistent 'desired' levels of money balances and business loans are
found to depend not only upon the usual transactions variable and interest
rate but also upon relative prices and a technology index. Moreover, the
speed in closing the gap between desired and actual money balances (loan
balances) is estimated using annual two-digit Standard Industrial Code
data for durable and non-durable industries. Non-durable industries tend
to close the gap faster than durable industries by as much as 25% in a
given year.
Journal: Applied Economics
Pages: 197-205
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010031473
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010031473
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:197-205
Template-Type: ReDIF-Article 1.0
Author-Name: Camilla Jensen
Author-X-Name-First: Camilla
Author-X-Name-Last: Jensen
Title: Foreign direct investment, industrial restructuring and the upgrading of Polish exports
Abstract:
This paper poses a central question in relation to the
economic-structural effect of Foreign Direct Investment (FDI) with Polish
manufacturing as an empirical case: how FDI coincides with the technology
intensity of Polish exports. A short review of the available literature
discusses critically the possibility of establishing one-sided
cause-effect relationships between trade and FDI. Subsequently the
empirical analysis investigates what role incoming FDI appears to have
played in relation to Polish export specialization over the period
1989-1996. Results indicate that FDI has affected positively the
technology intensity of the Polish export base.
Journal: Applied Economics
Pages: 207-217
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010025641
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010025641
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:207-217
Template-Type: ReDIF-Article 1.0
Author-Name: Pat McGregor
Author-X-Name-First: Pat
Author-X-Name-Last: McGregor
Author-Name: Roisin Thanki
Author-X-Name-First: Roisin
Author-X-Name-Last: Thanki
Author-Name: Patricia McKee
Author-X-Name-First: Patricia
Author-X-Name-Last: McKee
Title: Home and away: graduate experience from a regional perspective
Abstract:
The recent establishment of regional assemblies adds a further policy
dimension to higher education. This paper consists of an empirical
analysis of the choices made by the 1991 Northern Ireland cohort of
entrants to higher education to stay in or leave Northern Ireland for
universities and subsequently then for employment. The data indicate that
the probability to leave was firmly linked to A level scores, though this
interacted with religion and social class. The choice of labour market for
most students reflected the location of university. Those who returned to
Northern Ireland after graduation were less able and earned less on
average than those who remained. Employment in the locality of the
university improves earnings, possibly due to the information this
generates for both parties.
Journal: Applied Economics
Pages: 219-230
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840011028594
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840011028594
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:219-230
Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Sanso
Author-X-Name-First: Marcos
Author-X-Name-Last: Sanso
Author-Name: Antonio Montanes
Author-X-Name-First: Antonio
Author-X-Name-Last: Montanes
Title: Cointegration, error correction mechanism and trade liberalization: the case of the Spanish imports of manufactures
Abstract:
This paper discusses the way that the effects of a tariff cut process on
trade flows should be analysed when the variables are nonstationary. Using
cointegration techniques and the error correction mechanism, it is
possible to establish the different types of structural break that might
appear in the behaviour of a trade flow as a consequence of the trade
liberalization process, both in the short and in the long-run. In order to
illustrate the results, the evolution of the Spanish imports of
manufacturers after Spain's entry into the European Community is analysed.
Journal: Applied Economics
Pages: 231-240
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110036314
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036314
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:231-240
Template-Type: ReDIF-Article 1.0
Author-Name: David Morelli
Author-X-Name-First: David
Author-X-Name-Last: Morelli
Title: The robustness of tests of structural change in equity returns using factor analysis
Abstract:
The objective of this paper is to perform various tests of structural
change within the context of factor analysis and determine how robust the
results of such tests are to; the security selection criteria in
constructing portfolios, portfolio size, and methods of factor extraction.
The question of a possible structural change is addressed by examining the
Stock Market Crash of October 1987. Monthly returns on 257 securities
listed on the London Stock Exchange covering the period January 1976 to
December 1995 are used. The data period incorporates the Stock Market
Crash of October 1987.
Journal: Applied Economics
Pages: 241-251
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110036279
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036279
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:241-251
Template-Type: ReDIF-Article 1.0
Author-Name: Jimmy Ran
Author-X-Name-First: Jimmy
Author-X-Name-Last: Ran
Title: Volatility of fundamental variables under different exchange rate system--a simple test for Hong Kong
Abstract:
This paper presents a comparison in the changes of Hong Kong
macroeconomic fundamental variables before and after its currency was
'pegged' to the US dollar in October 1983. Using a simple method from
Flood and Rose (1995) and Baxter and Stockman (1989), this paper compares
the volatilities of all aggregate variables used by those investigators in
so far as these data are available for Hong Kong. The results show,
contrary to the dominating empirical literature for the G-7 countries,
that the volatilities of more than half of the nominal and real variables
under the float are significantly higher than those under the link.
Journal: Applied Economics
Pages: 253-258
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110036288
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036288
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:253-258
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Garcia
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Garcia
Author-Name: Carmen Marcuello
Author-X-Name-First: Carmen
Author-X-Name-Last: Marcuello
Title: Family model of contributions to non-profit organizations and labour supply
Abstract:
In this article a model is presented in which the family decides the
labour supply of both spouses and their time donations to non-profit
organizations. For the estimation, Spanish data was used which showed that
family size and pre-school children influence decisions made about time
distribution of husband and wife. Women with fewer family responsibilities
work longer hours and donate more time, whilst the effect on men is the
contrary. Also, monetary donations by the family are directly related to
time donations by the spouses.
Journal: Applied Economics
Pages: 259-265
Issue: 2
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110042164
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110042164
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Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:259-265
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Anari
Author-X-Name-First: Ali
Author-X-Name-Last: Anari
Author-Name: James Kolari
Author-X-Name-First: James
Author-X-Name-Last: Kolari
Author-Name: Seppo Pynnonen
Author-X-Name-First: Seppo
Author-X-Name-Last: Pynnonen
Author-Name: Antti Suvanto
Author-X-Name-First: Antti
Author-X-Name-Last: Suvanto
Title: Further evidence on the credit view: the case of Finland
Abstract:
The present paper provides further empirical evidence on the credit view
(i.e., bank credit availability has a positive impact on macroeconomic
activity) by investigating the case of Finland. The Finnish economy
suffered a severe recession in the early 1990s that was marked by
widespread banking crisis and extensive government intervention. Using
monthly data for the 1980-1996 period, unrestricted and restricted vector
autoregression (VAR) models with GDP, money supply, consumer prices, bank
credit, and exports were estimated. It is found that, while money supply
had the largest effect on economic output, bank credit exhibited a fairly
strong effect on output that exceeded price effects for the most part.
Exports had little impact on fluctuations in GDP but did help to explain
industrial output changes over time. Based on these results, it is
concluded that there is empirical support for the credit view in Finland.
By implication, government intervention in Finland to restore safety and
soundness during the banking crisis likely limited further damage to the
macroeconomy associated with disruption of credit intermediation services.
Journal: Applied Economics
Pages: 267-278
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110047592
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110047592
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:267-278
Template-Type: ReDIF-Article 1.0
Author-Name: Ayumi Kikuchi
Author-X-Name-First: Ayumi
Author-X-Name-Last: Kikuchi
Author-Name: Michael Sumner
Author-X-Name-First: Michael
Author-X-Name-Last: Sumner
Title: Exchange-rate pass-through in Japanese export pricing
Abstract:
Two recent aggregative studies claim to demonstrate that Japanese
exporters absorb a proportion of exchange-rate changes in their profit
margins; but the estimates of this proportion are dramatically different.
This study accounts for the discrepancy, and shows that neither estimate
is credible. These results identify incomplete pass-through, conditional
on costs, as a transitory consequence of export pricing in currencies
other than yen. The only long-run effect of the exchange rate on
yen-dominated export prices operates through imported materials prices.
Journal: Applied Economics
Pages: 279-284
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110048456
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110048456
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:279-284
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Moro
Author-X-Name-First: Daniele
Author-X-Name-Last: Moro
Author-Name: Paolo Sckokai
Author-X-Name-First: Paolo
Author-X-Name-Last: Sckokai
Title: Functional separability within a quadratic inverse demand system
Abstract:
In this paper, a quadratic inverse (almost ideal) demand system (IQUAIDS)
is derived, that generalizes the inverse (almost ideal) demand system
(IAIDS). Starting from a flexible parameterization of the distance
function, this model allows a more flexible specification by overcoming
the potential restrictiveness of linear scale curves. However, at a point
of normalization, the IQUAIDS boils down to the IAIDS, thus the additional
flexibility pertains only to the specification of scale elasticities away
from the point of approximation. Previous work on functional separability
is extended to the case of inverse demands, and necessary and sufficient
conditions for weak separability of the direct and indirect utility
function derived, in terms of the Antonelli elasticities of
complementarity and of the scale elasticities. Their proper parametric
representation within the inverse specification is also derived. An
empirical application to fish demand in Italy is provided, mainly for
illustrative purposes.
Journal: Applied Economics
Pages: 285-293
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110042173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110042173
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:285-293
Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Fachin
Author-X-Name-First: Stefano
Author-X-Name-Last: Fachin
Author-Name: Dennis Shea
Author-X-Name-First: Dennis
Author-X-Name-Last: Shea
Author-Name: Maurizio Vichi
Author-X-Name-First: Maurizio
Author-X-Name-Last: Vichi
Title: Exploring 3D datasets: a factorial matrices analysis of the US industry in the 1980s
Abstract:
In this paper a Factorial Matrices technique suitable for exploratory
analysis of multivariate, disaggregated time series is presented and
applied to a data set covering 19 US manufacturing industries over the
years 1979 to 1990. The empirical analysis confirms that the technique is
a powerful tool, allowing otherwise difficult extraction of stylized facts
from multidimensional datasets. In this case: (i) there are no signs of
deindustrialization induced by growing import penetration, and, (ii),
employment decline has generally not been associated to substitution of
capital to labour.
Journal: Applied Economics
Pages: 295-304
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110043749
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110043749
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:295-304
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Cowling
Author-X-Name-First: Marc
Author-X-Name-Last: Cowling
Title: The extent and determination of performance related pay systems in Scandinavian countries
Abstract:
The incidence of performance related pay (PRP) varies substantially
across countries. Using individual worker level data, it is the intention
of this paper to examine initially the extent to which institutional
factors across Denmark, Sweden and Finland affect the coverage of
Performance Related Pay. It then identifies the types of workers and firms
that choose this form of payment system within each country. The initial
findings suggest that institutional factors within countries play a role
in determining the extent to which the adoption of PRP systems varies
across countries, although this is far clearer for Finland than between
Denmark and Sweden for example. The results also show that there are
significant differences across Scandinavia in terms of the workers who
choose PRP systems and the firms who adopt them. Strong support is found
for the previously identified and positive relationship between firm size
and use of PRP.
Journal: Applied Economics
Pages: 305-316
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/0003684011-36297
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684011-36297
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:305-316
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Morley
Author-X-Name-First: Bruce
Author-X-Name-Last: Morley
Title: Output, consumption and the stock market: implications for European convergence
Abstract:
This paper investigates the nature of the relationship between output and
stock prices, and consumption and stock prices, with respect to the
different financial structures that exist primarily in the European Union
(EU). Evidence is found of a long-run relationship for both relationships,
with the exception of Germany and to an extent France, which is argued is
due to their bank dominated financial systems. Kalman Filter estimates
reveal that both relationships have increased in strength, although little
evidence is found of any convergence in the strength of the relationship
across the EU.
Journal: Applied Economics
Pages: 317-323
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110049301
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110049301
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:317-323
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Ferdous Alam
Author-X-Name-First: Mohammad Ferdous
Author-X-Name-Last: Alam
Author-Name: Ishak Haji Omar
Author-X-Name-First: Ishak Haji
Author-X-Name-Last: Omar
Author-Name: Dale Squires
Author-X-Name-First: Dale
Author-X-Name-Last: Squires
Title: Sustainable fisheries development in the tropics: trawlers and licence limitation in Malaysia
Abstract:
Sustainable fisheries development requires sound fisheries management.
Area licence limitation programmes may form the cornerstone for most
tropical multispecies fisheries management programmes. An empirical
analysis of Peninsular Malaysian fishing trawlers is used to design an
area licence limitation programme that conforms to the multiproduct
production technology, and cost and revenue structures to best accommodate
condtions of asymmetric information between the regulator and fishing
vessels.
Journal: Applied Economics
Pages: 325-337
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110036305
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036305
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:325-337
Template-Type: ReDIF-Article 1.0
Author-Name: Angelina Lazaro
Author-X-Name-First: Angelina
Author-X-Name-Last: Lazaro
Author-Name: Ramon Barberan
Author-X-Name-First: Ramon
Author-X-Name-Last: Barberan
Author-Name: Encarnacion Rubio
Author-X-Name-First: Encarnacion
Author-X-Name-Last: Rubio
Title: The economic evaluation of health programmes: why discount health consequences more than monetary consequences?
Abstract:
There is currently general agreement amongst economists that the discount
rate to compute the present value of benefits and costs in the economic
evaluation of public policies is defined according to the social time
preference approach. However, whether this rate has to be used for the
discount of non-monetary health consequences is a question for which there
is no satisfactory reply. In this paper, it is argued that such a reply
rests on the estimation of the relationship between the individual time
preference for health and money in the contexts of private and social
choice. In support of this argument an empirical analysis has been carried
out in which the individuals making-up a representative sample of the
population of Zaragoza (Spain) have been faced with a series of
hypothetical inter-temporal choices. Their replies have implicitly
revealed their temporal preference rates and have led to the conclusion
that health consequences are discounted at a higher rate than monetary
consequences. This would appear to be contrary to the standard practice
applied in the economic valuation of health programmes.
Journal: Applied Economics
Pages: 339-350
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110043758
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110043758
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:339-350
Template-Type: ReDIF-Article 1.0
Author-Name: Amor Diez-Ticio
Author-X-Name-First: Amor
Author-X-Name-Last: Diez-Ticio
Author-Name: Maria-Jesus Mancebon
Author-X-Name-First: Maria-Jesus
Author-X-Name-Last: Mancebon
Title: The efficiency of the Spanish police service: an application of the multiactivity DEA model
Abstract:
In this paper the efficiency of the Spanish Police Service is analysed
using Data Envelopment Analysis (DEA). The analysis concentrates on the
police activities related to the solving of crimes. The theoretical and
empirical study of the police production function under this dimension
leads to a consideration of the units analysed as centres which carry out
their activities with nonidentical technologies and using common inputs.
Accordingly, the multiactivity DEA model developed by Mar Molinero
(Journal of the Operational Research Society, 47, 1996, 1273-9) is
applied, one that is designed to estimate the efficiency of institutions
which face several production functions using shared inputs. The results
demonstrate the important differences that exist between the centres with
respect to the distinct activities analysed, both as regards the
efficiency rates and the factors which determine them.
Journal: Applied Economics
Pages: 351-362
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110043767
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110043767
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:351-362
Template-Type: ReDIF-Article 1.0
Author-Name: Anne Gilbert
Author-X-Name-First: Anne
Author-X-Name-Last: Gilbert
Author-Name: Alan King
Author-X-Name-First: Alan
Author-X-Name-Last: King
Author-Name: Christina Cregan
Author-X-Name-First: Christina
Author-X-Name-Last: Cregan
Title: Gender and wages: a cohort study of primary school teachers
Abstract:
This study uses cohort data to analyse the observed (or gross) salary
differential between male and female primary school teachers. The teachers
in this sample, who are all employed in state-sector schools in the same
geographic locality, are observed 20 years after first entering the
teaching profession. The main finding is that two-fifths of the
differential cannot be explained by gender differences in the levels of
experience, qualification and mobility within our sample and so is
attributed to labour market discrimination and other unobservable gender
influences.
Journal: Applied Economics
Pages: 363-375
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110044144
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044144
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:363-375
Template-Type: ReDIF-Article 1.0
Author-Name: John Hudson
Author-X-Name-First: John
Author-X-Name-Last: Hudson
Author-Name: Philip Jones
Author-X-Name-First: Philip
Author-X-Name-Last: Jones
Title: In search of the good samaritan: estimating the impact of 'altruism' on voters' preferences
Abstract:
This paper continues the development of a theoretical foundation for
measuring 'altruistic' behaviour with respect to tax versus expenditure
preferences in three specific spheres: health, education and welfare
payments. Particular emphasis is placed on analysing the choice theoretic
calculus that underlies individual preferences. Using this theoretical
foundation, econometric techniques allow progress to be made in measuring
the characteristics of the underlying utility function. The empirical work
relates to the UK and confirms that both self-interest and public interest
(with a slight emphasis on the latter) determine overall preferences. The
implications of this for the public choice school are then examined.
Journal: Applied Economics
Pages: 377-383
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110048447
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110048447
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:377-383
Template-Type: ReDIF-Article 1.0
Author-Name: Don Webber
Author-X-Name-First: Don
Author-X-Name-Last: Webber
Title: Labour's reward across regions of the EU: a distributional dynamic approach
Abstract:
A large number of empirical studies have tested for the presence of
convergence for a variety of economic variables. This paper examines the
evolution of labour's reward across regions of the EU to identify whether
factor price convergence has occurred. Density diagrams are used to
illustrate static distributions while transitional matrices are employed
to identify movements of the distribution over time. The results presented
suggest that the evolutionary paths of average regional pay are fairly
stable with stratification and persistence identified as important
characteristics. There was uninterrupted convergence of average regional
pay between 1980-1992. However, between 1992-1994 this process reversed.
Journal: Applied Economics
Pages: 385-394
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110050633
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110050633
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:385-394
Template-Type: ReDIF-Article 1.0
Author-Name: John Sutherland
Author-X-Name-First: John
Author-X-Name-Last: Sutherland
Title: Wages in and voluntary quits from an establishment internal labour market
Abstract:
This paper analyses wage rates in and quit rates from two production
departments in an establishment based structured internal labour market in
which labour allocation between grades and the wage rate of these grades
are managerially determined. First, it is assumed that management makes
effective use of the 'private' information about individual employees
collected through time, proxied by tenure, to allocate them to the most
appropriate tasks. However, in an OLS regression the elasticity of the
wage rate with respect to tenure, although statistically significant, is
not economically important. Further, it is assumed that this labour
allocation process together with the wage structure will facilitate labour
retention. However, in a probit model analysing the quit probability, the
probability of quitting increases with the wage rate. Both results are
compatible with an internal labour market labour allocation process and
wage structure that is not competitive with wage rates prevailing in the
external labour market.
Journal: Applied Economics
Pages: 395-400
Issue: 3
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110053234
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110053234
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Handle: RePEc:taf:applec:v:34:y:2002:i:3:p:395-400
Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Wen Tsou
Author-X-Name-First: Meng-Wen
Author-X-Name-Last: Tsou
Author-Name: Jin-Tan Liu
Author-X-Name-First: Jin-Tan
Author-X-Name-Last: Liu
Author-Name: James Hammitt
Author-X-Name-First: James
Author-X-Name-Last: Hammitt
Title: Worker turnover and job reallocation in Taiwanese manufacturing
Abstract:
The paper examines time-series patterns of job and worker flows in a
newly industrializing economy (NIE). Using plant-level data from the
Taiwan manufacturing sector, the cyclical behaviour of job reallocation
and its relation with worker turnover is analysed. It is found that job
reallocation and labour turnover are procyclical, at both the aggregate
and (two-digit) industry levels. The share of worker turnover caused by
gross job reallocation is 17%, suggesting the majority of observed worker
turnover reflects rotations of positions that are neither created or
destroyed. There is substantial heterogeneity in plant-specific job and
worker turnover patterns. Job creation and job destruction rates are
higher among small plants and private-sector plants. The private plants
are more dynamic than public plants in terms of worker turnover.
Controlling for year and industry effects, it is found that job creation
and worker turnover are both higher in export-oriented industries.
Journal: Applied Economics
Pages: 401-411
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110046016
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046016
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:401-411
Template-Type: ReDIF-Article 1.0
Author-Name: Dana Mukamel
Author-X-Name-First: Dana
Author-X-Name-Last: Mukamel
Author-Name: William Spector
Author-X-Name-First: William
Author-X-Name-Last: Spector
Title: The competitive nature of the nursing home industry: price mark ups and demand elasticities
Abstract:
Nursing home markets are likely to deviate from a competitive structure
because of limitations on entry imposed by Certificate of Need (CON)
regulations and the potential for product differentiation along such
attributes as location, religious affiliation and quality. This paper
investigates the structure of nursing home markets in New York State by
calculating price mark ups and residual private pay demand elasticities.
It shows that the residual demand elasticity is bound by estimates based
on price mark ups above marginal costs and above Medicaid rates. This
approach allows estimation of demand elasticities in all markets, whether
or not CON regulations constrain bed supply. Mean price elasticities (in
absolute value) calculated for nursing homes in New York State in 1991
ranged from 3.46 to 3.85.
Journal: Applied Economics
Pages: 413-420
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110044199
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044199
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:413-420
Template-Type: ReDIF-Article 1.0
Author-Name: Aliza Fleischer
Author-X-Name-First: Aliza
Author-X-Name-Last: Fleischer
Author-Name: Edward Seiler
Author-X-Name-First: Edward
Author-X-Name-Last: Seiler
Title: Determinants of vacation travel among Israeli seniors: theory and evidence
Abstract:
This study investigates determinants of vacation travel among seniors. A
consumer choice model is developed that incorporates effects of retirement
and health on available leisure time, and effects of age and education on
disposable income. The empirical implications of the model depend on
leisure and income patterns, that in turn determine if time and budget
constraints are binding. The model is illustrated using data collected
from Israeli seniors. Results confirm theoretical predictions regarding
the changing effectiveness of constraints as seniors grow older.
Journal: Applied Economics
Pages: 421-430
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110046476
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046476
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:421-430
Template-Type: ReDIF-Article 1.0
Author-Name: David Paton
Author-X-Name-First: David
Author-X-Name-Last: Paton
Title: Advertising, quality and sales
Abstract:
This paper investigates claims that firm-specific effects in
advertising-sales models can be attributed to a positive correlation
between advertising and product quality. Using a standard Koyck
transformation on an unbalanced panel dataset of UK firms, the implied
long-lasting effects of advertising disappear when firm-specific effects
are taken into account. This conclusion is robust to various econometric
approaches. However, when the firm-specific effects are retrieved, they
are found to correlate strongly with mean advertising. There is no
discernible link between the firm-specific effects and whether a firm
perceives quality to be an important form of competition in its market.
The results give no support to the idea that advertising affects sales
through associated product quality. They are consistent with the
persistence of advertising within firms over time.
Journal: Applied Economics
Pages: 431-438
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110046025
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046025
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:431-438
Template-Type: ReDIF-Article 1.0
Author-Name: Lars Nilsson
Author-X-Name-First: Lars
Author-X-Name-Last: Nilsson
Title: Trading relations: is the roadmap from Lometo Cotonou correct?
Abstract:
One of the reasons behind the re-negotiation of the Lome Convention,
resulting in the Cotonou Agreement, was the alleged inability of the trade
provisions of Lome to increase the African, Caribbean and Pacific (ACP)
countries' market share of the European Union (EU) market. The Cotonou
Agreement may lead to the more advanced ACPs being granted future market
access to the EU under a generalized system of preferences (GSP), in
conformity with World Trade Organization (WTO) rules. To this end, this
paper makes a comparative analysis of the effects of the EU's Lome
Convention and GSP on exports of developing countries using a gravity type
of model. The results indicate positive and statistically significant
export effects of the both the Lome Convention and the GSP. The export
effects are greater in case of the Lome Convention throughout the study
period running from 1973 to 1992. In addition, the paper illustrates the
EU country distribution of the export effects and shows that Belgium and
The Netherlands are the EU countries that most have increased their
imports from the developing countries under both the Lome Convention and
the GSP.
Journal: Applied Economics
Pages: 439-452
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110046007
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046007
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:439-452
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Worthington
Author-X-Name-First: Andrew
Author-X-Name-Last: Worthington
Author-Name: Brian Dollery
Author-X-Name-First: Brian
Author-X-Name-Last: Dollery
Title: Incorporating contextual information in public sector efficiency analyses: a comparative study of NSW local government
Abstract:
Using the planning and regulatory function of 173 NSW local governments,
several approaches for incorporating contextual or non-discretionary
inputs in data envelopment analysis (DEA) are compared. Non-discretionary
inputs (or factors beyond managerial control) in this context include the
population growth rate and distribution, the level of development and
non-residential building activity, and the proportion of the population
from a non-English speaking background. The approaches selected to
incorporate these variables include discretionary inputs only,
non-discretionary and discretionary inputs treated alike and differently,
categorical inputs, 'adjusted' DEA, and 'endogenous' DEA. The results
indicate that the efficiency scores of the five approaches that
incorporated non-discretionary factors were significantly positively
correlated. However, it was also established that the distributions of the
efficiency scores and the number of councils assessed as perfectly
technically efficient in the six approaches also varied significantly
across the sample.
Journal: Applied Economics
Pages: 453-464
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110044171
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044171
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:453-464
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dobson
Author-X-Name-First: Stephen
Author-X-Name-Last: Dobson
Author-Name: Carlyn Ramlogan
Author-X-Name-First: Carlyn
Author-X-Name-Last: Ramlogan
Title: Convergence and divergence in Latin America, 1970-1998
Abstract:
This paper examines the process of convergence in Latin America over the
period 1970-1998. There has been relatively little work on income
convergence among developing countries in general and in Latin America in
particular, even though many studies have examined convergence both within
and among developed countries. There is little support for the convergence
hypothesis over the sample period as a whole - although the beta
coefficient is positive, it is insignificant. Convergence is strong in the
1970s but by the 1990s it has disappeared. There is no evidence of a
narrowing in the cross-country dispersion of income (sigma convergence)
for the sample period as a whole. The results offer little support for the
neo-classical growth model - poorer countries have not grown faster than
richer ones. There is a strong case for strengthening regional development
policy.
Journal: Applied Economics
Pages: 465-470
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110046467
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046467
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:465-470
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Author-Name: David Berri
Author-X-Name-First: David
Author-X-Name-Last: Berri
Title: The impact of the 1981 and 1994-1995 strikes on Major League Baseball attendance: a time-series analysis
Abstract:
Protracted labour disputes in professional team sports have become
increasingly common in the past 30 years. Although each of the four major
professional team sports in the USA have experienced episodes of labour
strife, Major League Baseball has the longest and most frequent experience
with labour-management conflict. Fans and the media claim with each
incident permanent harm is done to baseball's standing as the national
pastime. The purpose of this paper is to ascertain whether such claims can
be supported by the empirical evidence. Utilizing time-series analysis,
aggregate attendance at professional baseball games is examined. The
evidence presented suggests that although the most protracted periods of
labour discord had short-term impacts on attendance, there is no empirical
evidence that these exogenous shocks had any long-term effects.
Journal: Applied Economics
Pages: 471-478
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110044162
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044162
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:471-478
Template-Type: ReDIF-Article 1.0
Author-Name: Virginia Wilcox-Gok
Author-X-Name-First: Virginia
Author-X-Name-Last: Wilcox-Gok
Title: The effects of for-profit status and system membership on the financial performance of hospitals
Abstract:
This research examines whether for-profit status or system membership is
significantly related to the financial performance of hospitals. Panel
data containing 573 observations of Florida hospitals for 1984 through
1987 are used in a fixed-effects regression model. The results indicate
that it is system membership rather than forprofit status that is
significantly related to better financial performance. For-profit status
is unrelated to overall financial performance. System hospitals have
higher revenues per admission, but not higher expenditures per admission
than independent hospitals. The findings are consistent with the
hypothesis that expanding hospital systems target locations and services
that are potentially profitable.
Journal: Applied Economics
Pages: 479-489
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110044180
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044180
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:479-489
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chung Nieh
Author-X-Name-First: Chien-Chung
Author-X-Name-Last: Nieh
Title: The effect of the Asian financial crisis on the relationships among open macroeconomic factors for Asian countries
Abstract:
This study investigates the effect of Asian financial crisis on the
relationships among exchange rate volatility, export, import, and
productivity for Taiwan, Korea, Malaysia, and Indonesia. Cointegration
tests show no change for the long-run equilibrium relationship among these
variables throughout the crisis. Granger causality finds that some
exogeneity orderings alter from pre- to post-crisis periods for the
countries considered. Impulse response functions (IRs) for the pre-crisis
period demonstrate the primary importance of productivity, then second
importance of export. For the post-crisis period, oscillatory paths around
zero of the IRs imply an ambiguous finding for the direction of effect and
relative exogeneity among variables studied. The variance decompositions
in export for Taiwan, Korea and Malaysia, and in productivity for Malaysia
and Indonesia did not change from the pre-crisis to the post-crisis era.
However, most of the rest of the forecast error variances in variables
were decomposed into their own innovation more proportional in the
pre-crisis period than in the post-crisis period.
Journal: Applied Economics
Pages: 491-502
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110046827
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110046827
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:491-502
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Maria Angulo
Author-X-Name-First: Ana Maria
Author-X-Name-Last: Angulo
Author-Name: Jose Maria Gil
Author-X-Name-First: Jose Maria
Author-X-Name-Last: Gil
Author-Name: Boubaker Dhehibi
Author-X-Name-First: Boubaker
Author-X-Name-Last: Dhehibi
Author-Name: Jesus Mur
Author-X-Name-First: Jesus
Author-X-Name-Last: Mur
Title: Town size and the consumer behaviour of Spanish households: a panel data approach
Abstract:
The aim of this paper is to analyse the effect of town size on the
Spanish demand for food. The methodological approach followed in the study
is to use panel data built from the Spanish Quarterly National Expenditure
Survey to estimate a demand system. The use of this type of data allows
control for unobserved time invariant heterogeneity as well as to take
into account the time and the cross-section dimension of data. Four
locations are distinguished: (1) less than 10000 inhabitants; (2) between
10000 and 100000 inhabitants; (3) between 100000 and 500000 inhabitants;
and (4) more than 500000 inhabitants. Eight broad food categories are
considered: (1) cereals and potatoes; (2) meat; (3) fish; (4) dairy
products; (5) fats and oils; (6) fruits; (7) vegetables; and (8) other
food. Income and price elasticities are calculated for each location. In
general terms, two general conclusions can be drawn. First, results
indicate that only slight changes in tastes have taken place during the
analysed period; second, income and price elasticities use to decrease as
town size increases.
Journal: Applied Economics
Pages: 503-507
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110047583
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110047583
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:503-507
Template-Type: ReDIF-Article 1.0
Author-Name: Maria De Mello
Author-X-Name-First: Maria
Author-X-Name-Last: De Mello
Author-Name: Alan Pack
Author-X-Name-First: Alan
Author-X-Name-Last: Pack
Author-Name: M. Thea Sinclair
Author-X-Name-First: M. Thea
Author-X-Name-Last: Sinclair
Title: A system of equations model of UK tourism demand in neighbouring countries
Abstract:
This paper uses a system of equations model to examine tourism demand
during periods of destination country transition and integration into the
wider international community. The Almost Ideal Demand System model is
applied to the UK demand for tourism in the neighbouring destinations,
France, Spain and Portugal. Spain and Portugal are interesting cases as,
during the period under consideration, they experienced a process of
transition from economies with characteristics typical of developing
countries, only entering the World Bank's industrialized countries
classification in the 1980s. The paper examines the evolution of tourism
demand during these countries' transition from 'developing' to 'developed'
status. Consideration of France as a neighbouring destination also allows
the behaviour of tourism demand to be compared between relatively rich and
poor countries. The results show the extent to which the cross-country
behaviour of demand becomes more or less similar over time with respect to
changes in expenditure and effective prices. The expenditure elasticities
are greater for Spain than France during the initial period, indicating
that tourism can assist countries to 'catch-up' with their richer
neighbours. However, this outcome is not always the case and may not
persist, as Portugal had a low initial expenditure elasticity and Spain's
relatively high expenditure elasticity decreased over time. Destinations'
sensitivity to changes in their own and competitors' prices can also
change over time, as indicated by the increases in the own- and
cross-price elasticities for Spain, compared with the decreases for France
and Portugal. The cross-price elasticity estimates indicate
substitutability between the immediate neighbours, Portugal and Spain, and
France and Spain.
Journal: Applied Economics
Pages: 509-521
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110049310
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110049310
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:509-521
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Bohringer
Author-X-Name-First: Christoph
Author-X-Name-Last: Bohringer
Title: Industry-level emission trading between power producers in the EU
Abstract:
This paper investigates how restrictions for emission trading to the
energy-intensive power sector will affect the magnitude and distribution
of abatement costs across EU countries vis-a-vis a comprehensive EU
emission trading regime. It is found that emission trading between
European power sectors allows the harvest of a major part of the
efficiency gains provided by full trade as compared to strictly domestic
action. However, trade restrictions may create a more unequal distribution
of abatement costs across member states than is the case for a
comprehensive trade regime. The reason for this is that restricted permit
trade enhances secondary terms-of-trade benefits to EU member countries
with low marginal abatement costs at the expense of the other EU member
states.
Journal: Applied Economics
Pages: 523-533
Issue: 4
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110052163
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110052163
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Handle: RePEc:taf:applec:v:34:y:2002:i:4:p:523-533
Template-Type: ReDIF-Article 1.0
Author-Name: Clive Belfield
Author-X-Name-First: Clive
Author-X-Name-Last: Belfield
Author-Name: R. D. F. Harris
Author-X-Name-First: R. D. F.
Author-X-Name-Last: Harris
Title: How well do theories of job matching explain variations in job satisfaction across education levels? Evidence for UK graduates
Abstract:
Using ordered probit estimation technique this paper examines the job
satisfaction of recent UK graduates. Focussing primarily on explaining job
satisfaction in terms of individuals matching to jobs, with the match
depending on reservation returns, information sets and job offer rates.
Only limited support can be found for the argument that job matching
explains higher job satisfaction. In addition, stylizing graduates as a
peer group, who form satisfaction levels based on their rankings relative
to each other we examine whether or not education quality, which raises
peer group status and increases the job offer rate, is systematically
related to job satisfaction. The results broadly support the hypothesis
that job satisfaction is neutral across graduates of different education
qualities. However, our specification tests indicate that ordered probit
estimation may not be fully appropriate for identifying the
characteristics of those with high job satisfaction.
Journal: Applied Economics
Pages: 535-548
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110041895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110041895
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:535-548
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Lane
Author-X-Name-First: Philip
Author-X-Name-Last: Lane
Author-Name: Gian Maria Milesi-Ferretti
Author-X-Name-First: Gian Maria
Author-X-Name-Last: Milesi-Ferretti
Title: Long-run determinants of the Irish real exchange rate
Abstract:
Smooth adjustment to real exchange rate shifts is one of the major
challenges facing the Irish economy under EMU. Rather than assume
purchasing power parity, the long-run real exchange rate is modelled as
time-varying, being determined by relative output levels, the terms of
trade and the net foreign asset position. It is shown that these factors
account for a large proportion of the long-run movement in the Irish real
exchange rate.
Journal: Applied Economics
Pages: 549-553
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110036729
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110036729
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:549-553
Template-Type: ReDIF-Article 1.0
Author-Name: Nigel Driffield
Author-X-Name-First: Nigel
Author-X-Name-Last: Driffield
Title: Determinants of inward investment in the UK, a panel analysis
Abstract:
This paper develops an inter-industry model of inward investment, using a
fixed effects approach. This demonstrates that when inward investment is
investigated in such a framework, previous findings, relating to the
specification of measures of location advantage and ownership advantages
no longer hold. This also shows that there are some industries that have
attracted significant inward investment over time, and continue to do so,
while others are noticeably less successful. Reasons for this, and
potential policy measures are briefly discussed.
Journal: Applied Economics
Pages: 555-560
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110099243
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099243
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:555-560
Template-Type: ReDIF-Article 1.0
Author-Name: Stirling Bryan
Author-X-Name-First: Stirling
Author-X-Name-Last: Bryan
Author-Name: David Parry
Author-X-Name-First: David
Author-X-Name-Last: Parry
Title: Structural reliability of conjoint measurement in health care: an empirical investigation
Abstract:
This paper is concerned with the structural reliability of conjoint
measurement when applied in a health care setting. The clinical context
was the diagnosis and treatment of knee injuries. A conjoint measurement
study was conducted which used the pairwise choice approach to preference
elicitation. Each choice included two scenarios: a conventional treatment
approach to management (arthroscopy) and an approach using magnetic
resonance imaging. In order to test for structural reliability two
separate conjoint measurement exercises were conducted: exercise A where
scenarios were defined in terms of three attributes and exercise B where
scenarios included all four attributes. The assessment of structural
reliability involved a comparison of two random effects probit models, for
exercises A and B. Data were collected on a total of 176 students of
sports science. The results strongly indicate that the models for the two
exercises are different, although the instability is limited to the
constant term and a single model attribute (i.e. the avoidance of
surgery). The finding of instability in the constant coefficient raises
important questions about the appropriateness of labelling scenarios in
conjoint measurement exercises.
Journal: Applied Economics
Pages: 561-567
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110103733
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110103733
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:561-567
Template-Type: ReDIF-Article 1.0
Author-Name: Michael French
Author-X-Name-First: Michael
Author-X-Name-Last: French
Title: Physical appearance and earnings: further evidence
Abstract:
The literature contains numerous studies on earnings differentials based
on age, race, and gender. Comparatively few studies have examined
differences in labour market success related to physical appearance. Using
three waves of data collected at two organizations, this paper tested for
earnings differentials among workers based on their self-reported
appearance. Significant earnings premiums for attractiveness were found
for women, but not for men.
Journal: Applied Economics
Pages: 569-572
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010027568
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010027568
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:569-572
Template-Type: ReDIF-Article 1.0
Author-Name: Wanki Moon
Author-X-Name-First: Wanki
Author-X-Name-Last: Moon
Author-Name: Wojciech Florkowski
Author-X-Name-First: Wojciech
Author-X-Name-Last: Florkowski
Author-Name: Larry Beuchat
Author-X-Name-First: Larry
Author-X-Name-Last: Beuchat
Author-Name: Anna Resurreccion
Author-X-Name-First: Anna
Author-X-Name-Last: Resurreccion
Author-Name: Pavlina Paraskova
Author-X-Name-First: Pavlina
Author-X-Name-Last: Paraskova
Author-Name: Jordan Jordanov
Author-X-Name-First: Jordan
Author-X-Name-Last: Jordanov
Author-Name: Manjeet Chinnan
Author-X-Name-First: Manjeet
Author-X-Name-Last: Chinnan
Title: Demand for food variety in an emerging market economy
Abstract:
Using food intake survey data collected in Bulgaria in 1997, this study
identified socioeconomic and demographic factors affecting demand for
varied diet as measured by the count of food items and Entropy index.
Consumer preference for food variety exhibited different patterns
depending on the length of time allowed for consumption. Estimated
correlation coefficients indicated that daily variety deviated from that
measured weekly and monthly. Regression analysis showed that regional
effects differed across the three periods of time, illustrating that the
length of time allowed for consumption is an important element in
measuring the demand for food variety.
Journal: Applied Economics
Pages: 573-581
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110037863
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110037863
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:573-581
Template-Type: ReDIF-Article 1.0
Author-Name: Costas Karfakis
Author-X-Name-First: Costas
Author-X-Name-Last: Karfakis
Title: Testing the quantity theory of money in Greece
Abstract:
This paper tests two monetarist hypotheses on the Greek data: (1) the
predictability of income velocity of money; and (2) the proportionality
postulate between nominal income (or, prices) and money. The unit root
tests with structural breaks show that the velocity of narrow money can be
characterized as a stationary process. The Autoregressive Distributed Lag
(ARDL) approach to cointegration indicates that the proportionality
postulate between nominal income (or, prices) and money is supported by
the data. This evidence suggests that shocks which affect the money supply
are reflected in the nominal income (or, prices) in a similar way, thus
velocity will not fluctuate widely and its movements will be predictable.
Journal: Applied Economics
Pages: 583-587
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110070014
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110070014
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:583-587
Template-Type: ReDIF-Article 1.0
Author-Name: Mary O'Malley Borg
Author-X-Name-First: Mary O'Malley
Author-X-Name-Last: Borg
Author-Name: Harriet Stranahan
Author-X-Name-First: Harriet
Author-X-Name-Last: Stranahan
Title: The effect of gender and race on student performance in principles of economics: the importance of personality type
Abstract:
Do women and minorities perform more poorly in economics courses than
their white male counterparts? There are a number of studies that indicate
that they do (Siegfried, 1979; Ferber, et al., 1983; Lumsden and Scott,
1987; Gohmann and Specter, 1989; Watts and Lynch, 1989; Anderson, et al.,
1994). In addition, there are some studies that indicate that students'
personality types adversely affect their performance in economics courses,
as well (Borg and Shapiro, 1996; Zeigert, 2000). However, no one has yet
studied how a student's personality type combines with race and gender to
affect performance in economics courses. To explore this issue, this study
tests for the statistical significance of a number of interaction effects
between race and gender and the Kiersey-Bates temperament types in an
ordered probit model explaining a student's grade in Principles of
Macroeconomics. It is concluded that race and gender do matter in a
student's performance in Principles of Macroeconomics, but not in a
simple, direct way. Race and gender combine with temperament type to form
more subtle, interactive effects on a student's probability of success in
economics. In our particular sample of 119 students at the University of
North Florida, female NF and NT students and non-white NT students
performed more poorly in Principles of Macroeconomics than their
counterparts who did not have these gender/temperament or race/temperament
combinations.
Journal: Applied Economics
Pages: 589-598
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110039249
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110039249
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:589-598
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Martin
Author-X-Name-First: Stephen
Author-X-Name-Last: Martin
Title: Do military exports stimulate civil exports?
Abstract:
Recent research suggests that the economic benefits to the UK economy
from arms exports might not be that great. Surveys suggest that almost
two-thirds of those that lose their job in the defence industry either
retire or find new work within one year and arms exports are heavily
subsidized by the UK government. Thus any cut in such exports would reduce
the annual subsidy payable by the British taxpayer. However, in addition
to the direct economic benefits from defence exports there might be
indirect effects. Hartley and Hooper (Does trade follow the flag? A study
of the UK trade and security policy, Centre for Defence Economics,
University of York, 1998) considered whether UK arms exports might lead to
higher civil exports. This paper examines this hypothesis. It estimates
import demand functions for three countries (Indonesia, Saudi Arabia and
South Korea) and for the world as a whole over the period 1970-1997. The
results suggest that UK arms exports do not stimulate UK civil exports.
Journal: Applied Economics
Pages: 599-605
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110039762
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110039762
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:599-605
Template-Type: ReDIF-Article 1.0
Author-Name: Shakir Hussain
Author-X-Name-First: Shakir
Author-X-Name-Last: Hussain
Author-Name: Ghazi Shukur
Author-X-Name-First: Ghazi
Author-X-Name-Last: Shukur
Title: A simple method for detecting fractional cointegration relation: an application to Finnish data
Abstract:
The cointegration technique, based originally on nonstationary component,
reduced 'Dimension Reduction' to some linear combination that is
stationary. The obtained dimension has unit minimum and s - 1 maximum
linear combination setting, where s stands for number of components in the
system. In this paper a new reduction concept is provided that explains
fractional cointegrated system. This reduction is located on specific
angle and defined as the cointegration direction. The reduction 'Level
Reduction' exists with smaller level of fractional orders, i.e. when -0.5
< dz < 0.5, where dz represent the fractional differences of the
linear combination series, while the original series orders are in
≥ 0.5 level and the system is fractionally cointegrated. This, of
course, can be considered as a new way to detect fractional cointegration
relation among variables of the same order of differencing in the
frequency domain. A concept Periodogram Roughness (PR) is used to estimate
and test the cointegration direction. The description of the direction
property will be presented. A test statistic is presented that is based on
the difference between the maximum and minimum of the PR. Using Monte
Carlo simulations, it is found that the properties of the test perform
satisfactorily regarding both size and power. Fractional differencing of
linear combination series is estimated using Periodogram Roughness. This
approach is illustrated using quarterly data on the government spending
and revenue in Finland during the period of 1960 to 1997.
Journal: Applied Economics
Pages: 607-615
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110044153
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110044153
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:607-615
Template-Type: ReDIF-Article 1.0
Author-Name: Gerry Boyle
Author-X-Name-First: Gerry
Author-X-Name-Last: Boyle
Author-Name: Pauline McCormack
Author-X-Name-First: Pauline
Author-X-Name-Last: McCormack
Title: Trade and technological explanations for changes in sectoral labour demand in OECD economies
Abstract:
This paper sets out to establish the main determinants of variations in
the demand for aggregate labour in manufacturing and service sectors (22)
for a cross-section of OECD countries (14). A relatively new panel data
set is employed in the analysis, the OECD's International Sectoral Data
Base. Preliminary analysis revealed that the 'within' sector variation in
the wage share dominated overall variation for most countries and time
periods. A separate dynamic model was thus generated to explain the
'within' sector variation in the wage share. This model contained real
wages, output, the capital stock, technological change (total factor
productivity) and trade (the imports to value-added ratio) as independent
variables. In addition the wage level was also interacted with these
explanatory variables on the presumption that skill is positively
correlated with the level of wages. Because of the potential for
simultaneity bias, estimation was conducted by IV and OLS. The main
findings were that the capital stock and technological change were the
main determinants of shifts in labour demand. While some countries
reported the trade variable as significant its influence was only of
slight importance in most cases. The interaction terms proved to be
significant in a large number of countries. Some evidence was found that
capital and technological were complementary with skill. Overall it was
found that broad agreement existed across countries in the factors which
influence labour demand despite considerable differences in the
cross-country nature of labour market institutions.
Journal: Applied Economics
Pages: 617-635
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110048474
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110048474
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:617-635
Template-Type: ReDIF-Article 1.0
Author-Name: Seppo Pynnonen
Author-X-Name-First: Seppo
Author-X-Name-Last: Pynnonen
Author-Name: Juuso Vataja
Author-X-Name-First: Juuso
Author-X-Name-Last: Vataja
Title: Bootstrap testing for cointegration of international commodity prices
Abstract:
This paper investigates cointegration with respect to nine commodity
groups traded on international markets. Nonparametric bootstrapping is
utilized in the testing procedure. Of the 21 pairs of price series,
investigated here, for 13 the no-cointegration null hypothesis is rejected
in favour for the cointegration of the series. In addition to five out of
the remaining eight cases that were not cointegrated, a plausible
explanation is the prevailing trade policy. Thus a great majority of the
institutionally nonregulated cases turn out to get empirical support for
being cointegrated. An important statistical finding is that the augmented
Dickey-Fuller test for cointegration (CRADF) generally yields p-values
that are close to the p-values obtained by the bootstrap testing. But once
they differ substantially, it is usually an indication of irregular
periods (e.g. structural changes) in the series. The paper conducts also a
Monte Carlo simulation experiment to investigate the power and size
properties of the tests. Generally the results indicate that the test
procedures have pretty low power in small samples. Bootstrapping improves
the testing somewhat by leading consistently to a bit more powerful
inference.
Journal: Applied Economics
Pages: 637-647
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110050642
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110050642
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:637-647
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Hammond
Author-X-Name-First: Christopher
Author-X-Name-Last: Hammond
Title: Efficiency in the provision of public services: a data envelopment analysis of UK public library systems
Abstract:
This study assesses the relative efficiency of public library services by
examining the relationship between library inputs and library outputs in
multi-outlet library systems. Differences in the size of the area and
population served are reflected in differences in the number of outlets
and mix of outlet types. Using a Data Envelopment Analysis, which controls
for the accessibility of library resources, this study derives technical
and overall efficiency scores for 99 UK Public Library Systems. The data
are survey observations for 1995/1996. Over the decade leading up to the
survey, library services had been subject to a protracted period of budget
restraint and contraction in most areas of activity. The distribution of
efficiency scores is skewed, implying that although many library systems
are efficient or near-efficient, there is a tail of inefficient
operations. Inefficiency is mainly, but not exclusively associated with
over subscription to serial publications. Many library systems are scale
inefficient, operating under conditions of increasing returns to scale.
Reorganization of the service may be required if greater efficiency is to
be achieved.
Journal: Applied Economics
Pages: 649-657
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110053252
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110053252
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:649-657
Template-Type: ReDIF-Article 1.0
Author-Name: Jill Holman
Author-X-Name-First: Jill
Author-X-Name-Last: Holman
Author-Name: Philip Graves
Author-X-Name-First: Philip
Author-X-Name-Last: Graves
Title: Implications of consumer heterogeneity in time-series estimates of US money demand
Abstract:
The money demand function has traditionally been estimated with income
and interest rates, typically employing quite lengthy time series.
Controversy, however, surrounds the importance of heterogeneous agents in
monetary economics and throughout macroeconomics more generally. In
particular, if proportions of agents with different traits (and hence,
different money demands) are changing over time, ignoring those changes
may bias estimated income and interest elasticities. This concern, as well
as that of appropriate functional form, is explored here. Controlling for
consumer heterogeneity has surprising effects on the estimated
elasticities of traditional variables.
Journal: Applied Economics
Pages: 659-665
Issue: 5
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110094464
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110094464
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Handle: RePEc:taf:applec:v:34:y:2002:i:5:p:659-665
Template-Type: ReDIF-Article 1.0
Author-Name: Carl Mela
Author-X-Name-First: Carl
Author-X-Name-Last: Mela
Author-Name: Praveen Kopalle
Author-X-Name-First: Praveen
Author-X-Name-Last: Kopalle
Title: The impact of collinearity on regression analysis: the asymmetric effect of negative and positive correlations
Abstract:
The purpose of this paper is to ascertain how collinearity in general,
and the sign of correlations in specific, affect parameter inference,
variable omission bias, and their diagnostic indices in regression. It is
found that collinearity can reduce parameter variance estimates and that
positive and negative correlation structures have an asymmetric effect on
variable omission bias. It is also shown that the effects of collinearity
are moderated by the relationship between the dependent variable and the
regressors, a consideration not incorporated into most commonly used
collinearity diagnostics. The formulae derived enable researchers to
assess the sensitivity of regression results to the underlying correlation
structure in the data.
Journal: Applied Economics
Pages: 667-677
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110058482
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058482
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:667-677
Template-Type: ReDIF-Article 1.0
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Using threshold cointegration to estimate asymmetric price transmission in the Swiss pork market
Abstract:
This paper employs threshold cointegration tests that allow for
asymmetric adjustment towards a long-run equilibrium relationship to
examine the relationship between producer and retail pork prices in
Switzerland. The short-run adjustments are also examined with asymmetric
error correction models that are compared to the conventional symmetric
error correction models. The results indicate that price transmission
between the producer and retail levels is asymmetric, in the sense that
increases in producer prices that lead to declines in marketing margins
are passed on more quickly to retail prices than decreases in producer
prices that result in increases in the marketing margins.
Journal: Applied Economics
Pages: 679-687
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110054035
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110054035
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:679-687
Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Author-Name: Jeffrey Woods
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Woods
Title: Employment composition and the cyclical behaviour of the aggregate real wage
Abstract:
This article investigates the relation between the cyclical behaviour of
employment composition and the weighted average (aggregate) real wage in
the USA. Cyclicality of employment composition arises in the context of
two competing explanations of business-cycle theory: the human capital
investment and profitability models. Consistent with the implications of
the profitability theory, the relative share of labour hours for older
(age ≥ 25) more highly-skilled and paid workers declines faster
during recessions compared to younger ((age 16-19) and (20-24)) less
skilled and lower-paid workers. This result, coupled with the downward
flexibility of teenage real wages reinforces the procyclical (reduction)
in the aggregate real wage during recessions. Interestingly, the decline
in the relative share of workers age ≥ 25 during recessions is not
accompanied by a corresponding significant decline in their nominal or
real wages. Thus, most of the adjustment during cyclical downturns appears
to result in a reduction in their relative share of labour hours as
opposed to wages. In addition, the empirical results suggest that the
relative share of employment for workers age ≥ 25 grows more slowly
during expansions compared to its decline during contractions, lending
further support to the profitability theory. The combined evidence
highlights the importance of both employment composition and disaggregate
real wages and their influence in determining the cyclical behaviour of
the aggregate real wage.
Journal: Applied Economics
Pages: 689-708
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110053243
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110053243
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:689-708
Template-Type: ReDIF-Article 1.0
Author-Name: Ghazi Shukur
Author-X-Name-First: Ghazi
Author-X-Name-Last: Shukur
Title: Dynamic specification and misspecification in systems of demand equations: a testing strategy for model selection
Abstract:
The purpose of this study is to describe a misspecification testing
strategy that is designed to ensure the appropriateness of the statistical
assumptions underlying a system of equations. A systemwise test approach
is used to test the statistical assumptions. The systemwise tests take
into account information in, and interaction between, all equations in the
system and can be used in a wide variety of applications where systems of
equations are estimated. If the systemwise test leads to rejection, single
equation F-test will then be used to help identify specific problems. The
systemwise testing approach is illustrated by modelling Swedish consumer
demand for milk. The example illustrates how the approach can be used to
solve issues regarding dynamic specification of models, structural change
and other forms of model misspecification.
Journal: Applied Economics
Pages: 709-725
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110048465
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110048465
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:709-725
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Duchesneau
Author-X-Name-First: Thomas
Author-X-Name-Last: Duchesneau
Author-Name: David Wihry
Author-X-Name-First: David
Author-X-Name-Last: Wihry
Title: The impact of degree programmes on university expenditure
Abstract:
This research examines the impact of the number and mix of academic
degree programmes on university operating expenditure in the United
States. Statistical results are based on data for doctoral and research
institutions without medical schools. After controlling for other factors
influencing expenditure, additional degree programmes are associated with
significant increases in expenditure, with doctoral programmes having a
40% higher marginal impact on total expenditure than baccalaureate
programmes. Most institutions are found to be smaller than the
expenditure-minimizing size and to have higher expenditure per
full-time-equivalent student. As specified, the models explain a large
amount of the variation in expenditure across the institutions.
Journal: Applied Economics
Pages: 727-739
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110052974
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110052974
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:727-739
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Fox
Author-X-Name-First: Kevin
Author-X-Name-Last: Fox
Title: Measuring technical progress in matching models of the labour market
Abstract:
Technical Progress in matching models of the labour market has not
received serious attention. This article examines the impact on the
results of these models when an attempt is made to allow time to enter in
a realistic fashion, and finds that recently published results on the
possibility of multiple equilibria are overturned. Also, different
parametric representations of the matching technology are compared, with
problems of more general forms not satisfying regularity conditions being
identified. While the possibility of Pareto-improving government
intervention due to multiple equilibria arising out of increasing returns
to scale cannot be supported, the results suggest a role for government
intervention in the labour market.
Journal: Applied Economics
Pages: 741-748
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110054017
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110054017
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:741-748
Template-Type: ReDIF-Article 1.0
Author-Name: C. J. Leon
Author-X-Name-First: C. J.
Author-X-Name-Last: Leon
Author-Name: F. J. Vazquez-Polo
Author-X-Name-First: F. J.
Author-X-Name-Last: Vazquez-Polo
Author-Name: N. Guerra
Author-X-Name-First: N.
Author-X-Name-Last: Guerra
Author-Name: P. Riera
Author-X-Name-First: P.
Author-X-Name-Last: Riera
Title: A Bayesian model for benefit transfer: application to national parks in Spain
Abstract:
Valuing environmental goods through benefit transfer is based on
information from the set of past empirical studies of similar or identical
sites. This paper proposes a Bayesian approach to model prior information
on mean consumer surplus. The prior distribution is defined as a convex
combination of the results from past empirical studies. An advantage of
the Bayesian approach is that the prior distribution could be combined
with on-site sample information in order to improve predictions on the
benefits of the policy site. The model is applied to data from national
parks in Spain. The results show that the benefits of policy sites are
more sensitive to the prior information for smaller sample sizes. This
implies that the prior distribution can be seen as a substitute for
on-site sample information.
Journal: Applied Economics
Pages: 749-757
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110054026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110054026
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:749-757
Template-Type: ReDIF-Article 1.0
Author-Name: Hua Wang
Author-X-Name-First: Hua
Author-X-Name-Last: Wang
Author-Name: Somik Lall
Author-X-Name-First: Somik
Author-X-Name-Last: Lall
Title: Valuing water for Chinese industries: a marginal productivity analysis
Abstract:
A marginal productivity approach is developed for valuing industrial use
of water and applied using data from Chinese industrial firms, where
water, as well as capital, labour and raw materials, are treated as inputs
to a production function. Models on price elasticity of water demand
associated with the marginal productivity approach are also developed and
estimated for different Chinese industrial sectors.
Journal: Applied Economics
Pages: 759-765
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110054044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110054044
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:759-765
Template-Type: ReDIF-Article 1.0
Author-Name: Ozlem Onaran
Author-X-Name-First: Ozlem
Author-X-Name-Last: Onaran
Title: Measuring wage flexibility: the case of Turkey before and after structural adjustment
Abstract:
This article presents an empirical analysis of wage flexibility in the
formal private sector in Turkey. The analysis is based on a wage
bargaining model that links the nominal wage demands to labour market
conditions, which are proxied by the rate of unemployment; productivity
improvements; and price expectations. The model is estimated on the basis
of panel data of the formal private manufacturing industry; and changes in
the wage setting mechanism as the country shifts from an import
substituting industrialization strategy to an export-oriented growth
regime are discussed. This debate is particularly important in terms of
its policy implications, and is relevant to current international
discussions of the role of labour markets during structural adjustment. In
most economic policy discussions, unemployment is assumed to be a labour
market rigidity problem. The results of this article, however, suggest
that increased flexibility of wages leaves little room for such arguments.
In the light of these findings, the prospect of wage rigidity becomes
immaterial, and a focus on the structural problems of the economy, which
are outside the labour market, becomes central.
Journal: Applied Economics
Pages: 767-781
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110056934
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110056934
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:767-781
Template-Type: ReDIF-Article 1.0
Author-Name: Oner Guncavdi
Author-X-Name-First: Oner
Author-X-Name-Last: Guncavdi
Author-Name: Benan Zeki Orbay
Author-X-Name-First: Benan Zeki
Author-X-Name-Last: Orbay
Title: Exchange rates, market structure and price-cost margins: evidence from a developing country
Abstract:
This paper analyses the sensitivity of firm performance to exchange rate
fluctuations. In a two-country world, consisting of a developing domestic
country and a developed foreign country, we show that this sensitivity is
closely related with market structure and the share of imported inputs in
total cost. When the share of imported inputs is low, depreciation leads
to an increase in price cost margin. This increase intensifies in more
competitive industries. When the imported input share is high, the price
cost margin may decrease as a result of depreciation, and this effect
becomes pronounced in more competitive industries. The empirical test
where we used 3-digit Turkish Manufacturing industry data support most of
the findings of our model.
Journal: Applied Economics
Pages: 783-789
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110058464
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058464
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:783-789
Template-Type: ReDIF-Article 1.0
Author-Name: Carol Moore
Author-X-Name-First: Carol
Author-X-Name-Last: Moore
Author-Name: Richard Mueller
Author-X-Name-First: Richard
Author-X-Name-Last: Mueller
Title: The transition from paid to self-employment in Canada: the importance of push factors
Abstract:
The share of self-employment in total employment has been growing in
Canada throughout the 1990s. Recent research for Canada and elsewhere
suggests that some workers may be 'pushed' into self-employment as a
response to inadequate opportunities in the paid sector. Examining
transitions from paid work to selfemployment using the Labour Market
Activity Survey, this push hypothesis is tested using a number of
indicators of the economic opportunities facing the newly selfemployed. It
is found: (i) longer spells of joblessness favour self-employment, (ii)
workers who collect unemployment benefits between jobs are less likely to
become self-employed than are workers who did not, (iii) workers who left
their previous, paid jobs involuntarily - i.e., due to layoff - were more
likely to become selfemployed than those who left voluntarily, but less
likely than workers who specified personal reasons for leaving, and (iv)
self-employment decisions are independent of the health of the labour
market as measured by the unemployment rate. These results are generally
consistent with the push hypothesis but provide more ambiguous evidence
than found in some other studies.
Journal: Applied Economics
Pages: 791-801
Issue: 6
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110058473
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058473
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Handle: RePEc:taf:applec:v:34:y:2002:i:6:p:791-801
Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Jimenez
Author-X-Name-First: Miguel
Author-X-Name-Last: Jimenez
Author-Name: Domenico Marchetti
Author-X-Name-First: Domenico
Author-X-Name-Last: Marchetti
Title: Interpreting the procyclical productivity of manufacturing sectors: can we really rule out external effects?
Abstract:
Recent empirical contributions on procyclical productivity have focused
on the dynamic implications of persistent aggregate fluctuations on
sectoral productivity. Given a permanent innovation in aggregate output,
unobserved variations of labour (or capital) utilization may have only a
transitory effect on measured productivity, whereas external effects
should produce permanent effects. It is found that persistent aggregate
fluctuations have a permanent effect on productivity of four-digit US
manufacturing industries. While a number of alternative explanations of
this evidence are discussed and ruled out, the findings are consistent
with a simple model with external or thick market effects.
Journal: Applied Economics
Pages: 805-817
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110058491
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058491
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:805-817
Template-Type: ReDIF-Article 1.0
Author-Name: Suzanne McCoskey
Author-X-Name-First: Suzanne
Author-X-Name-Last: McCoskey
Title: Convergence in Sub-Saharan Africa: a nonstationary panel data approach
Abstract:
Given the development of time series econometrics and nonstationary data
analysis, St. Aubyn (Empirical Economics, 24, 23-44, 1999) demonstrates a
new paradigm for testing income convergence, or better defined, income
stability, namely testing the stationarity of pair-wise income
differentials. In this paper, a panel data set of Sub-Saharan African
countries is constructed and panel cointegration and unit root tests are
used to investigate the convergence properties of incomes and standards of
living within Africa. Overall, little evidence is found to substantiate
claims of convergence across Africa, although in some cases, smaller
convergence clubs within Africa may be found. In addition the use of
nonstationary panel data techniques is proposed for the testing and
establishing of coherent convergence clubs.
Journal: Applied Economics
Pages: 819-829
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110061668
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061668
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:819-829
Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jurgen Engelbrecht
Author-X-Name-First: Hans-Jurgen
Author-X-Name-Last: Engelbrecht
Title: Human capital and international knowledge spillovers in TFP growth of a sample of developing countries: an exploration of alternative approaches
Abstract:
This study tests and compares the two major approaches to the modelling
of human capital in growth regressions, i.e. the Lucas and the
Nelson-Phelps approach, in the context of developing country models with
international knowledge spillovers. On balance, the results seem to favour
the Nelson-Phelps approach. Using human capital stock variables instead of
flow variables, a positive role for human capital in the absorption of
international knowledge spillovers other than embodied R&D spillovers is
confirmed. The results suggest the importance of distinguishing between
different types of international knowledge spillovers, as well as between
different human capital sub-categories.
Journal: Applied Economics
Pages: 831-841
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110061947
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061947
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:831-841
Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Ansotegui
Author-X-Name-First: Carmen
Author-X-Name-Last: Ansotegui
Author-Name: Maria Victoria Esteban
Author-X-Name-First: Maria Victoria
Author-X-Name-Last: Esteban
Title: Cointegration for market forecast in the Spanish stock market
Abstract:
This study is interested in empirically testing the existence of a
long-run relationship between the Spanish stock market and its
fundamentals, and in checking to which extent this relationship helps in
forecasting. This study is concerned with the behaviour of the aggregate
Madrid Stock Exchange in a macroeconomic context. It also identifies as
macroeconomic fundamentals: industrial production as a proxy for real
activity, inflation and interest rates. This study tests the existence of
cointegration by Johansen's procedure. The long-run relationships among
the variables implied by the existence of cointegration do not allow
inference to the interrelations among the variables. To get some insight
into the short-run interactions among the variables, an impulse response
analysis was performed. This study compares the forecasting ability of its
model with respect to alternative multivariate specifications in terms of
RMSE. Also measured is the value of the forecast for the financial agents
assessing the extent to which it helps improve asset allocation.
Journal: Applied Economics
Pages: 843-857
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110058932
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058932
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:843-857
Template-Type: ReDIF-Article 1.0
Author-Name: Jong Eun Lee
Author-X-Name-First: Jong Eun
Author-X-Name-Last: Lee
Title: Real interest rates in regional economic blocs
Abstract:
This paper investigates the long run relationship of real interest rates
within a number of economic blocs such as Asia-Pacific, Europe, North
America using cointegration analysis and vector error correction models.
Journal: Applied Economics
Pages: 859-864
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110118124
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110118124
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:859-864
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bauer
Author-X-Name-First: Thomas
Author-X-Name-Last: Bauer
Author-Name: Regina Riphahn
Author-X-Name-First: Regina
Author-X-Name-Last: Riphahn
Title: Employment effects of payroll taxes - an empirical test for Germany
Abstract:
This study tests to what degree the incidence of payroll taxes in Germany
is on employment and whether in consequence payroll taxes, in particular
social insurance contributions, are the culprit behind the growing
unemployment problem. Using industry level data for 18 years (1977-1994) a
system of five dynamic factor demand equations is estimated. Various
simulations indicate that the employment effects of payroll taxes are
minimal.
Journal: Applied Economics
Pages: 865-876
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110058914
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058914
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:865-876
Template-Type: ReDIF-Article 1.0
Author-Name: Jacint Balaguer
Author-X-Name-First: Jacint
Author-X-Name-Last: Balaguer
Author-Name: Manuel Cantavella-Jorda
Author-X-Name-First: Manuel
Author-X-Name-Last: Cantavella-Jorda
Title: Tourism as a long-run economic growth factor: the Spanish case
Abstract:
This paper examines the role of tourism in the Spanish long-run economic
development. The tourism-led growth hypothesis is confirmed through
cointegration and causality testing. The results indicate that, at least,
during the last three decades, economic growth in Spain has been sensible
to persistent expansion of international tourism. The increase of this
activity has produced multiplier effects over time. External competitivity
has also been proved in the model to be a fundamental variable for Spanish
economic growth. From the empirical analysis it can be inferred the
positive effects on income that government policy, in the adequacy of
supply as well as in the promotion of tourist activity, may bring about.
Journal: Applied Economics
Pages: 877-884
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110058923
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058923
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:877-884
Template-Type: ReDIF-Article 1.0
Author-Name: Jordan Shan
Author-X-Name-First: Jordan
Author-X-Name-Last: Shan
Title: A VAR approach to the economics of FDI in China
Abstract:
Using a vector autoregression (VAR) approach, this study re-examines
several hypotheses suggested by the economic literature on the economics
of FDI applying quarterly time series data from China, a country which has
recently become the second largest host country for FDI. Innovation
accounting (variance decomposition and impulse response function analysis)
is applied to analyse the various interrelationships between FDI and other
economic variables of interest in a VAR system. The empirical research
using this method in the case of China is limited, the study therefore
provides an interesting advance in the literature on the economics of FDI
in China.
Journal: Applied Economics
Pages: 885-893
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110058941
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110058941
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:885-893
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Simona Andreano
Author-X-Name-First: Maria Simona
Author-X-Name-Last: Andreano
Author-Name: Giovanni Savio
Author-X-Name-First: Giovanni
Author-X-Name-Last: Savio
Title: Further evidence on business cycle asymmetries in G7 countries
Abstract:
This paper tests for business cycle symmetry in G7 countries during the
post-World War II period using a number of tests, each reflecting
alternative definitions of business cycle asymmetry. The tests are applied
to monthly coincident economic indicators of business cycles. This found
that business cycles in the US are characterized by both longitudinal
(deepness) and transversal (steepness and sharpness) asymmetries: further,
it is found that asymmetric transition probabilties and time
irreversibility are due to nonlinearities. On the contrary, business
cycles in Germany exhibits a symmetric behaviour. Between these extremes
are the other countries, for which at least one of the tests here
considered rejects the null of cyclical symmetry. Particularly, business
cycle is characterized by deepness and sharpness in Canada, asymmetry in
persistence in France and Japan, and asymmetric transition probabilities
in France and United Kingdom.
Journal: Applied Economics
Pages: 895-904
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110060984
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110060984
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:895-904
Template-Type: ReDIF-Article 1.0
Author-Name: Marie Mora
Author-X-Name-First: Marie
Author-X-Name-Last: Mora
Author-Name: Alberto Davila
Author-X-Name-First: Alberto
Author-X-Name-Last: Davila
Title: State English-only policies and English-language investments
Abstract:
Many states in the US have considered adopting 'English-only' legislation
since the early 1980s. This paper argues that this legislation has a
variety of expected and unexpected outcomes. Using the 1980 and 1990
Integrated Public Use Microdata Series (IPUMS), this study finds that
Asian immigrants in general and Hispanic immigrants who arrived to the US
prior to 1970 acquired more English fluency on average during the 1980s
when residing in states that passed English-only (EO) legislation compared
to their similar peers. The passage of such legislation also appears to
have distorted residence decisions as well as the relative quality of
immigrants between EO and non-EO states.
Journal: Applied Economics
Pages: 905-915
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110061677
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061677
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:905-915
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Schittenkopf
Author-X-Name-First: Christian
Author-X-Name-Last: Schittenkopf
Author-Name: Peter Tino
Author-X-Name-First: Peter
Author-X-Name-Last: Tino
Author-Name: Georg Dorffner
Author-X-Name-First: Georg
Author-X-Name-Last: Dorffner
Title: The benefit of information reduction for trading strategies
Abstract:
Motivated by previous findings that discretization of financial time
series can effectively filter the data and reduce the noise, this
experimental study compares the trading performance of predictive models
based on different modelling paradigms in a realistic setting. Different
methods ranging from real-valued time series models to predictive models
on a symbolic level are applied to predict the daily change in volatility
of two major stock indices. The predicted volatility changes are
interpreted as trading signals for buying or selling a straddle portfolio
on the underlying stock index. Profits realized by this trading strategy
are tested for statistical significance taking into account transactions
costs. The results indicate that symbolic information processing is a
promising approach to financial prediction tasks undermining the
hypothesis of efficient capital markets.
Journal: Applied Economics
Pages: 917-930
Issue: 7
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110061938
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061938
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:917-930
Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Affuso
Author-X-Name-First: Luisa
Author-X-Name-Last: Affuso
Title: An empirical study on contractual heterogeneity within the firm: the 'vertical integration-franchise contracts' mix
Abstract:
This paper tests a discrete choice model on the mix of franchised and
company owned outlets (contractual heterogeneity) within the firm. This is
often explained by the existing literature as due to heterogeneous
characteristics of the outlets. However, correspondence between outlets
and contracts characteristics is not often observed in reality. An
explanation is proposed which suggests that contract mixing is driven by
the contractual choice of both principal and agents, and that
heterogeneous agents will choose contracts that match their
characteristics. This hypothesis is supported by econometric results,
based on outlet level microdata collected by means of a survey of UK
firms.
Journal: Applied Economics
Pages: 931-944
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110065817
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110065817
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Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Scacciavillani
Author-X-Name-First: Fabio
Author-X-Name-Last: Scacciavillani
Author-Name: Phillip Swagel
Author-X-Name-First: Phillip
Author-X-Name-Last: Swagel
Title: Measures of potential output: an application to Israel
Abstract:
This paper estimates measures of potential output for Israel, with the
aim of providing evidence on whether the recent growth slowdown is
principally a cyclical slowdown or a structural shift towards a slower
growth path after the dramatic developments associated with the years of
heavy immigration. Israel poses a challenge because traditional methods of
measuring potential output assume relatively stable conditions over an
extended period of time. Five methodologies are employed to derive
estimates and it is found that four of the measures imply the slowdown
stems largely from reduced growth of potential output rather than a
cyclical slowdown.
Journal: Applied Economics
Pages: 945-957
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110069174
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110069174
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:945-957
Template-Type: ReDIF-Article 1.0
Author-Name: Olof Johansson-Stenman
Author-X-Name-First: Olof
Author-X-Name-Last: Johansson-Stenman
Title: Estimating individual driving distance by car and public transport use in Sweden
Abstract:
How much to drive, and how much to use public transport, are modelled as
three and two level decisions, respectively, based on micro-data for
Sweden. The choices whether to have a car, whether to drive given access
to a car, and how much to drive given that the individual drives at all
are then estimated using a three equation model. Also after correcting for
other variables, such as income, men are driving much more, and using less
public transport, compared to women. People living in big cities are less
likely to drive, but those who do are on average driving about as much as
others. Age and access to company cars are also important determinants for
travel behaviour, but being a member of an environmental organization is
not. Driving increases with income, but to a lower degree compared to most
aggregated studies on national level. The difference is explained in a
model with income dependent structural changes, implying that it becomes
more difficult to live without a car when average income increases. This
indirect effect is found to be of a similar size as the ordinary income
elasticity typically found in cross-section analysis within a country or
region.
Journal: Applied Economics
Pages: 959-967
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110068823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110068823
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:959-967
Template-Type: ReDIF-Article 1.0
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Author-Name: Ping Zong
Author-X-Name-First: Ping
Author-X-Name-Last: Zong
Title: Household own-consumption and grain marketable surplus in China
Abstract:
This paper explores the interrelationships between Chinese grain prices,
farm households' income, their own-consumption of grain and their
marketable surplus supply during the rural reform era. A Gorman polar
indirect utility function is employed, from which a set of household grain
supply and consumption functions are estimated. The integrated modelling
approach recognizes the interdependence of household supply and
consumption decisions. A set of compensated elasticities are derived to
show the effects of grain prices, farm income and full household income on
grain consumption and on-farm labour supply. The impact of own-consumption
on marketable surplus supply is then gauged by estimating conditional and
unconditional price elasticities of marketable surplus supply. The results
point to the relatively strong positive effect of off-farm income on
household's own-consumption of grain and the negative influence this has
had on the marketable surplus of grain in China during the reform era.
Journal: Applied Economics
Pages: 969-974
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110065826
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110065826
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:969-974
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Title: Social security trust fund flows and the welfare costs of rent seeking
Abstract:
The current study provides estimates from a Parks regression (using panel
data) that suggest that the welfare costs due to rent seeking efforts by
interest groups to obtain Social Security trust fund flows ranged from
approximately $132 million (per twoyear federal election cycle from
1985-1994) to a theoretical expectation of $66 billion, all in real terms.
These welfare costs are in addition to any other social costs that may be
present, including the reduced levels of national saving that Social
Security may induce.
Journal: Applied Economics
Pages: 975-979
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110062009
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110062009
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:975-979
Template-Type: ReDIF-Article 1.0
Author-Name: Kellie Curry Raper
Author-X-Name-First: Kellie Curry
Author-X-Name-Last: Raper
Author-Name: Maria Namakhoye Wanzala
Author-X-Name-First: Maria Namakhoye
Author-X-Name-Last: Wanzala
Author-Name: Rodolfo Nayga
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Nayga
Title: Food expenditures and household demographic composition in the US: a demand systems approach
Abstract:
Food expenditures and subsistence quantities of poverty status and
non-poverty status US households are analysed within a Linear Expenditure
System that postulates subsistence quantities to be linear combinations of
demographic variables. Using the US Bureau of Labor Statistics' 1992
Consumer Expenditure Survey and Detailed Monthly Consumer Price Indices,
this article obtains expenditure elasticities, own-price elasticities and
subsistence quantities for each income group across nine broadly
aggregated food commodity groups. Elasticity estimates and subsistence
quantity estimates differ across income groups, supporting the premise
that policies targeted at specific income groups should be based on the
target group's elasticity estimates rather than average population
elasticities. Parameter estimates are then used to simulate how
subsistence quantities and own-price elasticities can be expected to vary
according to the demographic composition of the household within a
specific income group.
Journal: Applied Economics
Pages: 981-992
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110061959
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061959
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:981-992
Template-Type: ReDIF-Article 1.0
Author-Name: James Johnston
Author-X-Name-First: James
Author-X-Name-Last: Johnston
Title: Tenure, promotion and executive remuneration
Abstract:
Commentators frequently remark on the need to pay high levels of chief
executive officer remuneration to attract, motivate and retain the best
executives for Britain's leading companies. This paper presents the
results of an empirical investigation into tenure, promotion and executive
remuneration. The remuneration of the chief executive officers at some of
Britain's largest businesses is examined. In the majority of cases the CEO
had not been lured away from rivals but had risen through the internal
labour market, often after a long-term employment relationship. Moreover,
long job tenure and internal promotion were associated with higher levels
of pay. It is concluded that understanding of this controversial issue
will be improved if it is recognized that a part of current executive pay
may be a reward for previous successful performance.
Journal: Applied Economics
Pages: 993-997
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110069967
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110069967
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:993-997
Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Ang Lin
Author-X-Name-First: Chi-Ang
Author-X-Name-Last: Lin
Title: On the level of persistence in government size: time-series evidence and implications for the US
Abstract:
For most developed countries, the study of the long-term trend of
government size has become a major issue. This study employs advanced
time-series techniques to investigate the long-run properties of the
government size series for the US. By applying the persistence measures
developed by Campbell and Mankiw (Quarterly Journal of Economics, 102,
857-80, 1987) and Cochrane (Journal of Political Economy, 96, 893-920,
1988), this study finds big long-term persistence in government size at
all levels of the US government. The finding, indeed, explains the fact
that the US has gradually taken steps to control the size of government in
the 1990s.
Journal: Applied Economics
Pages: 999-1005
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210138347
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138347
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:999-1005
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Llorca Vivero
Author-X-Name-First: Rafael Llorca
Author-X-Name-Last: Vivero
Title: The impact of process innovations on firm's productivity growth: the case of Spain
Abstract:
The main aim of this paper is to investigate about the effect that a
measure of the process innovation performance of a firm has on its labour
productivity growth. This analysis is mainly a consequence of two
considerations. The first one results from a clear differentiation of the
role that product and process innovations have on a firm's performance.
The second one is to assume that the knowledge capital of a firm is mainly
composed by its successful research. The study demonstrates that process
innovation has a positive and significant effect on firm's productivity
growth. Moreover, this result is robust under a wide range of alternative
specifications and, in any case, the variable behaves much better than R&D
intensity. Following previous research, the detected quadratic
relationship between vertical product differentiation and process
innovation performance leads to the existence of some firms for which
there exist a trade-off between quality and productivity.
Journal: Applied Economics
Pages: 1007-1016
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840010019684
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840010019684
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1007-1016
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Asche
Author-X-Name-First: Frank
Author-X-Name-Last: Asche
Author-Name: Daniel Gordon
Author-X-Name-First: Daniel
Author-X-Name-Last: Gordon
Author-Name: Rognvaldur Hannesson
Author-X-Name-First: Rognvaldur
Author-X-Name-Last: Hannesson
Title: Searching for price parity in the European whitefish market
Abstract:
The purpose of this paper is to test for price parity across different
species of whitefish in the European Union. Price parity is defined by a
system of cointegrated prices and would be evidence of a single European
market for whitefish. Whitefish are of interest because EU fishers receive
the largest share of their income from these fish species. Notwithstanding
the single market policy of the EU, by establishing national and regional
associations to stabilize or increase the local price of fish, fishers
operate as if the European market is made up of separate submarkets with
price being determined largely within each submarket. If whitefish markets
were price cointegrated such associations would be largely ineffective. In
that case, what are required are regulations that encompass the European
market.
Journal: Applied Economics
Pages: 1017-1024
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110061965
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061965
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1017-1024
Template-Type: ReDIF-Article 1.0
Author-Name: A. J. Abbott
Author-X-Name-First: A. J.
Author-X-Name-Last: Abbott
Author-Name: G. De Vita
Author-X-Name-First: G.
Author-X-Name-Last: De Vita
Title: Long-run price and income elasticities of demand for Hong Kong exports: a structural cointegrating VAR approach
Abstract:
This article revisits a system of export volume and price equations to
estimate the long-run price and income effects in the demand for Hong
Kong's exports. Using a recently developed restricted cointegrating VAR
approach it tests theorybased restrictions and obtains estimates of the
long-run structural coefficients. The estimation results provide
supporting evidence for the theory-based restrictions and suggest that the
demand for Hong Kong's exports is both price and income elastic. This
article is therefore able to present a long-run model of Hong Kong's
exports that is both theory and data consistent, and long-run elasticities
that are economically interpretable. The short-run properties of the model
are illustrated by means of persistence profiles, which confirm the
cointegrating vectors tendency of convergence.
Journal: Applied Economics
Pages: 1025-1032
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110514
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110514
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1025-1032
Template-Type: ReDIF-Article 1.0
Author-Name: John Cotsomitis
Author-X-Name-First: John
Author-X-Name-Last: Cotsomitis
Author-Name: Andy Kwan
Author-X-Name-First: Andy
Author-X-Name-Last: Kwan
Author-Name: Chris DeBresson
Author-X-Name-First: Chris
Author-X-Name-Last: DeBresson
Author-Name: Thierry Weissenburger
Author-X-Name-First: Thierry
Author-X-Name-Last: Weissenburger
Title: Are there technological gains from the liberalization of exchange?
Abstract:
This article investigates the impact of openness and tariff reductions on
the technical inventiveness of selected OECD countries. The results
suggest that even these simple forms of trade liberalization may, under
certain conditions, favour technical inventiveness or creativity, the most
advanced form of technological gain. It is therefore likely that other,
more directly relevant kinds of liberalization of exchange, will have some
positive effects on less extreme forms of acquisition of technical
knowledge. The diversity in outcomes across the range of countries
surveyed points to the need to specify the conditions under which these
dynamic technological gains can be reaped and serve as a rationale for
international trade policy.
Journal: Applied Economics
Pages: 1033-1040
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110061983
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110061983
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1033-1040
Template-Type: ReDIF-Article 1.0
Author-Name: Derek Leslie
Author-X-Name-First: Derek
Author-X-Name-Last: Leslie
Author-Name: Joanne Lindley
Author-X-Name-First: Joanne
Author-X-Name-Last: Lindley
Author-Name: Leighton Thomas
Author-X-Name-First: Leighton
Author-X-Name-Last: Thomas
Title: Who did worse? a comparison of US and British non-white unemployment 1970-1998
Abstract:
US and British unemployment rates for non-white males and females are
compared over the period 1970-1998. Whereas US rates remained fairly
steady, there was a marked increase in British non-white unemployment
rates. The reasons for this poor performance, relative to the good
performance of US non-whites are explored. It is shown that non-white
unemployment behaves in different ways across the two countries. For
example, British rates rise faster in a recession than white rates,
whereas US rates appear not to follow this British hypercyclical pattern.
Journal: Applied Economics
Pages: 1041-1053
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/0003684011006192
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684011006192
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1041-1053
Template-Type: ReDIF-Article 1.0
Author-Name: Sajal Ghosh
Author-X-Name-First: Sajal
Author-X-Name-Last: Ghosh
Author-Name: Anjana Das
Author-X-Name-First: Anjana
Author-X-Name-Last: Das
Title: Short-run electricity demand forecasts in Maharashtra
Abstract:
This paper, has tried to forecast monthly maximum electricity demand for
the state Maharashtra, India, using Multiplicative Seasonal Autoregressive
Integrated Moving Average (MSARIMA) method for seasonally unadjusted
monthly data spanning from April 1980 to June 1999. The forecasted period
is 18 months ahead from June 1999. This study's basic findings are that
the series does not reveal any drastic change for the forecasted period.
It continues to follow the same trend along with the seasonal variation.
Journal: Applied Economics
Pages: 1055-1059
Issue: 8
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110064656
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110064656
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Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:1055-1059
Template-Type: ReDIF-Article 1.0
Author-Name: Chandana Chakraborty
Author-X-Name-First: Chandana
Author-X-Name-Last: Chakraborty
Author-Name: Parantap Basu
Author-X-Name-First: Parantap
Author-X-Name-Last: Basu
Title: Foreign direct investment and growth in India: a cointegration approach
Abstract:
The two-way link between foreign direct investment and growth for India
is explored using a structural cointegration model with vector error
correction mechanism. The existence of two cointegrating vectors between
GDP, FDI, the unit labour cost and the share of import duty in tax revenue
is found, which captures the long run relationship between FDI and GDP. A
parsimonious vector error correction model (VECM) is then estimated to
find the short run dynamics of FDI and growth. Our VECM model reveals
three important features: (a) GDP in India is not Granger caused by FDI;
the causality runs more from GDP to FDI; (b) trade liberalization policy
of the Indian government had some positive short run impact on the FDI
flow; and (c) FDI tends to lower the unit labour cost suggesting that FDI
in India is labour displacing.
Journal: Applied Economics
Pages: 1061-1073
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110074079
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074079
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1061-1073
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Gould
Author-X-Name-First: Brian
Author-X-Name-Last: Gould
Author-Name: Hector Villarreal
Author-X-Name-First: Hector
Author-X-Name-Last: Villarreal
Title: Adult equivalence scales and food expenditures: an application to Mexican beef and pork purchases
Abstract:
In the analysis of food expenditures, the use of a simple count of
household members as an estimate of household size implicitly assumes each
household member has the same marginal impact. In this analysis of Mexican
food expenditures, endogenously determined adult equivalence scales are
estimated in such a way that these marginal impacts are allowed to vary by
household member age and gender. The results of a series of hypothesis
tests indicate a rejection of the implied null hypothesis of equal
marginal expenditure impacts associated with the use of the traditional
count based household size variable. This study also rejects the null
hypothesis of the equality of adult equivalent scales across the
commodities included in this analysis.
Journal: Applied Economics
Pages: 1075-1088
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110074141
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074141
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1075-1088
Template-Type: ReDIF-Article 1.0
Author-Name: H. Ahmed
Author-X-Name-First: H.
Author-X-Name-Last: Ahmed
Author-Name: S. M. Miller
Author-X-Name-First: S. M.
Author-X-Name-Last: Miller
Title: The level of development and the determinants of productivity growth: a cross-country analysis
Abstract:
This article examines the effects of technology on productivity growth by
disaggregating total output into sectoral components, exploring the roles
of investment and technology on productivity growth for countries in
different income groups. It finds that for low-income countries,
investment is the most important determinant of productivity growth. While
investment plays an important role in determining productivity growth in
middle-income countries, additional effects resulting from technological
change also emerge. Investment ceases to have a significant effect on
productivity growth in high-income countries.
Journal: Applied Economics
Pages: 1089-1095
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110092718
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110092718
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1089-1095
Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Glass
Author-X-Name-First: J. C.
Author-X-Name-Last: Glass
Author-Name: D. G. McKillop
Author-X-Name-First: D. G.
Author-X-Name-Last: McKillop
Author-Name: G. O'Rourke
Author-X-Name-First: G.
Author-X-Name-Last: O'Rourke
Title: Evaluating the productive performance of UK universities as cost-constrained revenue maximizers: an empirical analysis
Abstract:
The study presents an empirical analysis of the relative revenue
efficiency of UK universities in providing teaching and research. With
government policies pressurizing the largely public-funded universities to
secure efficiency in both input usage and output revenue, university
producers are modelled as cost-constrained revenue maximizers. Taking
explicit account of the quality of research output, the methodology uses
linear programming techniques to construct nonparametric cost indirect
production frontiers and to compute revenue efficiency relative to these
frontiers. Revenue efficiency is then decomposed into its (output)
allocative and technical components. Further analysis investigates the
sources of allocative and technical inefficiencies.
Journal: Applied Economics
Pages: 1097-1108
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110088119
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110088119
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1097-1108
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Street
Author-X-Name-First: Andrew
Author-X-Name-Last: Street
Author-Name: Rowena Jacobs
Author-X-Name-First: Rowena
Author-X-Name-Last: Jacobs
Title: Relative performance evaluation of the English acute hospital sector
Abstract:
Relative performance evaluation has been suggested as a means to overcome
information asymmetry between regulators and organizations when assessing
efficiency. By comparing similar organizations the relationship between
costs and effort can be better isolated. The English Department of Health
(DoH) has undertaken relative performance evaluation in comparing the unit
costs of acute hospitals using ordinary least squares (OLS) methods. After
adjusting for exogenous influences in costs, residual unexplained cost
differences are deemed to represent inefficiency. This paper questions the
official interpretation of the OLS residuals. The OLS model is
re-estimated to calculate confidence intervals around the residuals and as
a stochastic cost frontier (SCF). It is concluded that English acute
hospitals exhibit less in efficiency than is implied by official
estimates.
Journal: Applied Economics
Pages: 1109-1119
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110088100
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110088100
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1109-1119
Template-Type: ReDIF-Article 1.0
Author-Name: Lori Leachman
Author-X-Name-First: Lori
Author-X-Name-Last: Leachman
Author-Name: Bill Francis
Author-X-Name-First: Bill
Author-X-Name-Last: Francis
Title: Twin Deficits: Apparition or Reality?
Abstract:
This paper uses cointegration and multicointegration analysis to explore
the issue of twin deficits for the USA in the post-World War II period.
The results suggest that prior to 1974 the systems of fiscal and foreign
sector variables exhibit multicointegration. These results do not rule out
short-run correlations between government deficits and external deficits.
However, they do preclude the possibility that the twin deficit phenomenon
describes a long-run structural relationship in the post-World War II,
Bretton Woods era. In the more recent period, 1974 forward, neither system
exhibits evidence of multi/cointegration. But, weak evidence of
cointegration is present between fiscal deficits and trade deficits. Error
correction models suggest that causality runs from internal to external
deficits in the dynamic adjustment process. This evidence provides some
support for the notion that more recently fiscal deficits may have
contributed to external deficits. In combination with the results from the
early sub-period, the evidence indicates that to the extent the twin
deficit relationship exists, it is time specific and weak.
Journal: Applied Economics
Pages: 1121-1132
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110069976
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110069976
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1121-1132
Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta
Author-X-Name-First: Jati
Author-X-Name-Last: Sengupta
Title: Economics of efficiency measurement by the DEA approach
Abstract:
Three aspects of efficiency measurement by data envelopment analysis are
discussed here analytically. These aspects comprise output-specific input
allocations by each firm, flexibility in the production process and the
role of learning by doing in efficiency improvement.
Journal: Applied Economics
Pages: 1133-1139
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110072305
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110072305
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1133-1139
Template-Type: ReDIF-Article 1.0
Author-Name: Charalambos Pattichis
Author-X-Name-First: Charalambos
Author-X-Name-Last: Pattichis
Title: Mean reversion in target zones: a re-examination of some ERM exchange rates
Abstract:
The theoretical literature on exchange rate behaviour in target zones
predicts that the exchange rate would be mean reverting. This article
empirically investigates this theoretical prediction in the case of the
German mark bilateral exchange rates. Using a recently developed unit root
test, this article provides evidence that is generally negative to the
idea of mean reversion. It shows that all bilateral exchange rates under
investigation appear to be unit root processes with the exception of the
Dutch guilder/German mark rate.
Journal: Applied Economics
Pages: 1141-1145
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110074114
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074114
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1141-1145
Template-Type: ReDIF-Article 1.0
Author-Name: Noor Ghazali
Author-X-Name-First: Noor
Author-X-Name-Last: Ghazali
Author-Name: Soo-Wah Low
Author-X-Name-First: Soo-Wah
Author-X-Name-Last: Low
Title: The expectation hypothesis in emerging financial markets: the case of Malaysia
Abstract:
This article deals with the expectation hypothesis of the term structure
of interest rates. It is argued that the rapid progress and financial
market liberalization that is occurring in emerging financial markets
could provide additional evidence for testing the expectation hypothesis.
This article employs data from the Malaysian government securities market
which represents one of the examples of an emerging financial market.
Cointegration and error correction analyses show significant empirical
validity for the expectation hypothesis. The long- and short-term interest
rates are shown to be cointegrated and subject to a long-run equilibrium
path. In addition to shedding some light on the experience of emerging
financial market, this article explicitly identifies the process of
adjustment towards the long run equilibrium. For the long-run, the results
are in favour of the long-to-short version of expectation hypothesis with
longer-term interest rates playing a greater role as equilibrium
attractor. However, in the short run causal impact runs from short- to
long-term interest rates. The empirical findings of the article generally
support the proposition of expectation hypothesis.
Journal: Applied Economics
Pages: 1147-1156
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110074123
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074123
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1147-1156
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: An econometric test of Wagner's law for six countries based on cointegration and error-correction modelling techniques
Abstract:
The present study empirically examined five different versions of
Wagner's law by employing annual time-series data on six countries over
the period 1951-1996. Three countries are part of the emerging
industrialized countries of Asia (South Korea, Taiwan, Thailand) and three
are industrialized countries (Japan, USA, and the United Kingdom). The
analysis is an advance over previous work in two ways: first, the
stationarity propertities of the data and the order of integration of the
data are empirically investigated using the Augmented Dickey-Fuller (ADF)
and the Kwiatkowski et al. (Journal of Econometrics, 1, 1992) (KPSS),
tests and second, the hypothesis of a long-run relationship between income
and government spending is tested using bivariate cointegrated systems and
employing the methodology of cointegration analysis as suggested by
Johansen (Journal of Economic Dynamics and Control, 12, 1988) and Johansen
and Juselius (Oxford Bulletin of Economics and Statistics, 52, 1990). The
results indicate that there exist a long-run relationship between income
and government spending for sample countries studied with the exception of
Thailand. Furthermore, it is found that the results concerning the
validity of Wagner's Law are also held for selected countries studied with
the exception of Thailand.
Journal: Applied Economics
Pages: 1157-1169
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110074132
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110074132
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1157-1169
Template-Type: ReDIF-Article 1.0
Author-Name: George Baltas
Author-X-Name-First: George
Author-X-Name-Last: Baltas
Title: An applied analysis of brand demand structure
Abstract:
The demand literature is concerned with the optimal allocation of
expenditure at varied but usually high levels of commodity aggregation.
Much less aggregation however is required for business applications. In
applied business settings, interest centres upon the different brands of
the same commodity because policy formulation takes place at the level of
the individual brand. This paper considers application of formal demand
analysis to brand demand data. A theoretically plausible demand system is
invoked to describe inter-brand allocation of expenditure, test
restrictions imposed by economic theory and yield empirically determined
insights into brand demand structure.
Journal: Applied Economics
Pages: 1171-1175
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110085996
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110085996
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1171-1175
Template-Type: ReDIF-Article 1.0
Author-Name: Julian Alston
Author-X-Name-First: Julian
Author-X-Name-Last: Alston
Author-Name: James Chalfant
Author-X-Name-First: James
Author-X-Name-Last: Chalfant
Author-Name: Nicholas Piggott
Author-X-Name-First: Nicholas
Author-X-Name-Last: Piggott
Title: Estimating and testing the compensated double-log demand model
Abstract:
In spite of the proliferation of flexible functional forms for consumer
demand systems, the double-log demand model continues to be popular,
especially in applied work calling for single-equation models. It is
usually estimated in uncompensated form. It can also be estimated in
compensated form, by deflating the income variable alone using Stone's
price index. The compensated form has the same right-hand side as a
single-equation version of the popular linear approximation to the Almost
Ideal demand model, facilitating the construction of a test for choosing
between the two alternatives. This paper demonstrates these results,
develops the specification test, and illustrates its application using US
meat consumption data. Simulations suggest that the test is well-behaved
with good power in typical applications.
Journal: Applied Economics
Pages: 1177-1186
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110086003
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110086003
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1177-1186
Template-Type: ReDIF-Article 1.0
Author-Name: A. F. Al-Faris
Author-X-Name-First: A. F.
Author-X-Name-Last: Al-Faris
Title: Public expenditure and economic growth in the Gulf Cooperation Council countries
Abstract:
This article uses a dynamic model calibrated to the Gulf Cooperation
Council (GCC) countries' data to examine the nature of the relationship
between government expenditure and economic growth. The article finds that
national income is a predictive factor of the expanding role of government
as postulated by Wagner. Empirical investigations do not support the
hypothesis of public expenditure causing national income as proposed by
the Keynesian theory.
Journal: Applied Economics
Pages: 1187-1193
Issue: 9
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110090206
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110090206
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Handle: RePEc:taf:applec:v:34:y:2002:i:9:p:1187-1193
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Cook
Author-X-Name-First: Paul
Author-X-Name-Last: Cook
Author-Name: Yuichiro Uchida
Author-X-Name-First: Yuichiro
Author-X-Name-Last: Uchida
Title: Productivity growth in east Asia: a reappraisal
Abstract:
In recent years there has been considerable disagreement over the extent
to which productivity growth has accounted for the success of the east
Asian economies. Empirical evidence, based on forms of growth accounting
or direct estimation of a production function, is inconclusive so that the
debate appears to be at a stalemate. This article applies an alternative
approach, using the Malmquist productivity indices, to investigate the
contribution of productivity to the longer term growth. The results
support the view that over the longer term, the east Asian economies were
input driven but interesting differences arise between countries when
shorter periods are analysed.
Journal: Applied Economics
Pages: 1195-1207
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110095778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095778
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1195-1207
Template-Type: ReDIF-Article 1.0
Author-Name: M. Bahmani-Oskooee
Author-X-Name-First: M.
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: F. Brown
Author-X-Name-First: F.
Author-X-Name-Last: Brown
Title: Demand for international reserves: a review article
Abstract:
Journal: Applied Economics
Pages: 1209-1226
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110096129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096129
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1209-1226
Template-Type: ReDIF-Article 1.0
Author-Name: N. Blasco
Author-X-Name-First: N.
Author-X-Name-Last: Blasco
Author-Name: P. Corredor
Author-X-Name-First: P.
Author-X-Name-Last: Corredor
Author-Name: R. Santamaria
Author-X-Name-First: R.
Author-X-Name-Last: Santamaria
Title: Is bad news cause of asymmetric volatility response? A note
Abstract:
This article uses a direct test of the impact of economic news on stock
volatility. The main interest is to test whether the asymmetric response
of volatility can be due to the effect of bad news. To do this, this study
takes items of news into account as exogenous variables. The analysis is
divided into two stages, each of which uses different items of news as
exogenous variables additional to the information provided by the
residuals. The first stage uses more exhaustively classified information
whereas the second considers daily information as a global sign. This
study finds that bad news is responsible for most of the observed
asymmetric behaviour of variance. Further, this study detects that the GJR
model adequately captures the impact of bad news when traders are not
ready to carry out a time-consuming analysis of the information.
Journal: Applied Economics
Pages: 1227-1231
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110095436
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095436
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1227-1231
Template-Type: ReDIF-Article 1.0
Author-Name: Yuzo Honda
Author-X-Name-First: Yuzo
Author-X-Name-Last: Honda
Title: The effects of the Basle accord on bank credit: the case of Japan
Abstract:
This paper has documented the empirical evidence that the Basle Accord
had significant effects on bank credit in Japan. The Accord reduced the
ratio of the credit increase to the total asset by 0.09-0.24% for banks
with the international standard, and by 0.06-0.21% for those with the
domestic standard, respectively. According to the Fixed Effects Model
estimates, the impacts of the regulation are in between 0.12% and 0.13%
for those banks with the international standard. These estimates are
smaller than the corresponding estimate with aggregate time series data,
0.40%.
Journal: Applied Economics
Pages: 1233-1239
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110094455
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110094455
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1233-1239
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Kyereme
Author-X-Name-First: Stephen
Author-X-Name-Last: Kyereme
Title: Determinants of United States' trade balance with Australia
Abstract:
This study explores the determinants of the USA's trade balance (NE) with
Australia, and tests for long-run relationships. Regression results
suggest the most important determinant of NE is the price ratio (USA
relative to Australia), followed by the lending rate ratio, GDP ratio,
money supply ratio, and the real exchange rate, which together explain 93%
of the variation in NE. F-tests suggest NE responds to rising and falling
exchange rate regimes symmetrically. Johansen's cointegration test
suggests a significant (at 1%) long run relationship between NE and its
determinants. Based on Engle-Granger, import share (IS) and output growth
(Q) are cointegrated at 10% if Q shocks precede IS shocks, suggesting a
weak long run relationship between them. There is a positive long run
relationship between NE and the exchange rate (ER) at 5%, if ER shocks
precede NE shocks. Results based on the error correction model suggest a
positive relationship between expected ER and NE, and reinforce the
cointegration results. The estimated NE regression model may be used to
monitor and predict NE, given relevant values (predicted or predetermined)
of its determinants.
Journal: Applied Economics
Pages: 1241-1250
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/0003684011-0094437
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684011-0094437
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1241-1250
Template-Type: ReDIF-Article 1.0
Author-Name: Mukhtar Ali
Author-X-Name-First: Mukhtar
Author-X-Name-Last: Ali
Author-Name: Richard Thalheimer
Author-X-Name-First: Richard
Author-X-Name-Last: Thalheimer
Title: Product choice for a firm selling related products: A parimutuel application
Abstract:
This paper provides a framework for analysis of product choice by a
multiproduct firm selling several products whose demands are interrelated.
The decision making process of a racetrack-racebook regarding the
parimutuel wagering products (both number and which ones) it should supply
is illustrated. A racetrack-racebook is a business entity, which offers
its patrons the opportunity to wager, not only on live horse racing
conducted at the racetrack but also on races simulcast to that racetrack
from a variety of racetracks, from both in-state and out-of-state
locations. The demands for these wagering products are interrelated and
these interrelationships play a key role in determining the number (and
which ones) of these wagering opportunities that will be supplied. Based
on the experience of a specific racetrack-racebook, these demand functions
are estimated econometrically and the role of these interrelated demands
in the supply decision is explored. An algorithm is developed to search
over all possible product portfolios to determine that combination of
products yielding the highest sales, revenue, or profit.
Journal: Applied Economics
Pages: 1251-1271
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110094428
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110094428
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1251-1271
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Moss
Author-X-Name-First: Charles
Author-X-Name-Last: Moss
Author-Name: Andrew Schmits
Author-X-Name-First: Andrew
Author-X-Name-Last: Schmits
Title: Price behaviour in the US sweetener market: a cointegration approach
Abstract:
The sweetener market in the United States is complicated because of the
substitution possibilities between high fructose corn syrup (HFCS) and
sugar. This study focuses on the relationship between raw sugar prices and
the prices for high fructose corn syrup. Sugar and HFCS are imperfect
substitutes for several industrial uses. Sugar can be used for all
industrial uses, but HFCS has limited uses. This study uses cointegration
analysis to examine the relationship between sugar and HFCS prices as well
as the relationship between raw and refined sugar prices over time. The
results indicate that sugar and HFCS prices move together for the
1983-1996 period. However, after this time period HFCS prices no longer
follow sugar prices.
Journal: Applied Economics
Pages: 1273-1281
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110088128
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110088128
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1273-1281
Template-Type: ReDIF-Article 1.0
Author-Name: V. Vandenberghe
Author-X-Name-First: V.
Author-X-Name-Last: Vandenberghe
Title: Evaluating the magnitude and the stakes of peer effects analysing science and math achievement across OECD
Abstract:
What follows is an exercise aimed at estimating peer effects' impact on
science and math test scores of secondary school students surveyed in 1995
by the International Education Agency across OECD countries. It is also to
discuss their importance for educational policy, particularly regarding
the highly sensitive issue of ability-grouping. Using this unique
international database. This study assesses the magnitude of the peer
effect relative to more traditional inputs. Referring to education policy
stakes, we control for the presence of increasing or decreasing return.
This study also checks for cross effects in order to determine whether
peer effects matter more to low or high SES pupils, and whether their
final impact on achievement is affected by the underlying level of
heterogeneity within the group. Using a methodology, which a priori
accounts for the clustering of the data within countries and
schools/classrooms - i.e. fixed/random effect or hierarchical model - our
analysis indicates that peer effects are strong determinants of both math
and science achievement relative to individual SES and other school
inputs. The presence of increasing of decreasing returns is not obvious.
But we find systematic evidence that low-ability pupils are more sensitive
to peer group characteristics. By contrast, this study also find that -
for a given level of the peer effect - higher heterogeneity comes at a
certain cost. In brief, these results provide no systematic evidence
regarding grouping policies.
Journal: Applied Economics
Pages: 1283-1290
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110094446
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110094446
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1283-1290
Template-Type: ReDIF-Article 1.0
Author-Name: W. D. Bradford
Author-X-Name-First: W. D.
Author-X-Name-Last: Bradford
Author-Name: A. N. Kleit
Author-X-Name-First: A. N.
Author-X-Name-Last: Kleit
Author-Name: M. A. Krousel-Wood
Author-X-Name-First: M. A.
Author-X-Name-Last: Krousel-Wood
Author-Name: R. N. Re
Author-X-Name-First: R. N.
Author-X-Name-Last: Re
Title: A two-part model of treatment for benign prostatic hyperplasia and the impact of innovation
Abstract:
Benign prostatic hyperplasia (BPHs) affects more than half of men who are
at least 60 years old. Transurethral resection of the prostate (TURP) is
the most common treatment. This article estimates the average costs of
providing a TURP to a patient that chooses the procedure and the expected
cost of a TURP irrespective of the actual treatment decision. It utilizes
a modified two-part model. It first estimates the likelihood of receiving
the TURP given a BPH diagnosis using a logit regression. The second step
is to estimate the (log of) TURP cost for the population that actually
received the procedure. For the TURP decision, data were extracted from
the National Health Interview Survey (NHIS) 1986-1994 on 502 men with a
diagnosis of BPH. For the cost model, HCIA discharge abstract data were
used from five states on 26640 men who actually received a TURP in 1994.
TURP was identified via CPT codes in the NHIS data. The cost of TURP was
constructed using patient hospital charges and hospital-specific cost to
charge ratios. It was found that patient characteristics and comorbidities
are important determinants of the decision to receive, and costs of, TURP.
Pharmacological alternatives to TURP significantly affect the likelihood
that a person will choose the procedure. The predicted unconditional cost
of TURP ranged from US$8908 to US$3832 (by state); the predicted
conditional cost of TURP ranged from US$1163 to US$750. The results
suggest that the cost associated with providing a TURP for the average man
with BPH would be US$492 to US$1163, depending on the state of residence.
It was found that estimating the costs using simple regression or ANOVA
techniques will lead to biased results due to sample selection (which in
this case range from US$3832 to US$8908).
Journal: Applied Economics
Pages: 1291-1299
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110095409
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095409
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1291-1299
Template-Type: ReDIF-Article 1.0
Author-Name: C. E. Dismuke
Author-X-Name-First: C. E.
Author-X-Name-Last: Dismuke
Author-Name: P. Guimaraes
Author-X-Name-First: P.
Author-X-Name-Last: Guimaraes
Title: Has the caveat of case-mix based payment influenced the quality of inpatient hospital care in Portugal?
Abstract:
Portugal was the first country with a national health system to
incorporate diagnosis related group (DRG) case-mix adjustment in
formulating hospital budgets on a nation-wide basis. Most of the case-mix
payment-outcomes literature comes from the USA where the quality of data
is superior to that of many other countries. The purpose of this article
is to assess the initial impact of case-mix financing on the quality of
inpatient care in Portuguese hospitals using a methodology that may be
appropriate for health care systems whose information is not as complete
as that of the USA. Estimating a count data model at the hospital level
with inpatient mortality as a quality indicator, the authors find no
evidence that case-mix based payment has had adverse consequences on
inpatient mortality for the most frequent non-obstetric DRG during the
three year time period under study.
Journal: Applied Economics
Pages: 1301-1307
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110095418
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095418
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1301-1307
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Gandar
Author-X-Name-First: J. M.
Author-X-Name-Last: Gandar
Author-Name: Richard Zuber
Author-X-Name-First: Richard
Author-X-Name-Last: Zuber
Author-Name: R. S. Johnson
Author-X-Name-First: R. S.
Author-X-Name-Last: Johnson
Author-Name: W. Dare
Author-X-Name-First: W.
Author-X-Name-Last: Dare
Title: Re-examining the betting market on Major League Baseball games: is there a reverse favourite-longshot bias?
Abstract:
A recent study of the fixed-odds betting market on baseball games, while
finding that the betting market is generally efficient, also found
evidence of an underbetting on underdog teams. This article examines the
evidence for this new anomaly. It corrects Woodland and Woodland's
estimates of the commission, subjective win probabilities and test
statistics. The efficiency null hypothesis cannot be rejected for all of
their tests when revised test statistics are calculated for their sample
period (however, like them, it was found that slight underdogs are
underbet). It is also shown that their bias is not simply a bias involving
favourites and underdogs. Whether underdogs are playing at home or away
also seems to matter in their sample period. As well a positive
relationship between returns and subjective probabilities was found for
underdogs and favourites, a relationship suggestive of a
favourite-longshot bias rather than its reverse. It is concluded that
there is insufficient evidence to claim that this bias is a 'true market
inefficiency'.
Journal: Applied Economics
Pages: 1309-1317
Issue: 10
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110095427
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110095427
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Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1309-1317
Template-Type: ReDIF-Article 1.0
Author-Name: G. MacDonald
Author-X-Name-First: G.
Author-X-Name-Last: MacDonald
Author-Name: D. Allen
Author-X-Name-First: D.
Author-X-Name-Last: Allen
Author-Name: S. Cruickshank
Author-X-Name-First: S.
Author-X-Name-Last: Cruickshank
Title: Purchasing Power Parity-evidence from a new panel test
Abstract:
This paper uses a recently suggested test for unit roots in panels of
time series data (Maddala and Wu, Oxford Bulletin of Economics and
Statistics, 61, 631-52, 1999) to consider the Purchasing Power Parity
hypothesis. The major innovation of this test is that it allows both the
testing of unit root null, using the ADF test, and the stationarity null,
using the KPSS test. It is found that the results are inconsistent,
suggesting that either alternative hypotheses to a unit root may need to
be considered or that panel based testing in this particular context may
be of limited value.
Journal: Applied Economics
Pages: 1319-1324
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110103760
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110103760
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1319-1324
Template-Type: ReDIF-Article 1.0
Author-Name: Henry Saffer
Author-X-Name-First: Henry
Author-X-Name-Last: Saffer
Author-Name: Dhaval Dave
Author-X-Name-First: Dhaval
Author-X-Name-Last: Dave
Title: Alcohol consumption and alcohol advertising bans
Abstract:
The purpose of this paper is to empirically examine the relationship
between alcohol advertising bans and alcohol consumption. Most prior
studies have found no effect of advertising on total alcohol consumption.
A simple economic model is provided which explains these prior results.
The data set used in this study is a pooled time series of data from 20
countries over 26 years. The empirical model is a simultaneous equations
system which treats both alcohol consumption and alcohol advertising bans
as endogenous. The primary conclusions of this study are that alcohol
advertising bans decrease alcohol consumption and that alcohol consumption
has a positive effect on the legislation of advertising bans. The results
indicate that an increase of one ban could reduce alcohol consumption by
5% to 8%. The alcohol price elasticity is estimated at about 0.2. The
results suggest that recent exogenous decreases in alcohol consumption
will decrease the probability of enactment of new bans and undermine the
continuance of existing bans. Canada, Denmark, New Zealand and Finland
have recently rescinded alcohol advertising bans. Alcohol consumption in
these countries may increase or decrease at a slower rate than would have
occurred had advertising bans remained in place.
Journal: Applied Economics
Pages: 1325-1334
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110102743
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110102743
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1325-1334
Template-Type: ReDIF-Article 1.0
Author-Name: Aliza Fleischer
Author-X-Name-First: Aliza
Author-X-Name-Last: Fleischer
Author-Name: Steven Buccola
Author-X-Name-First: Steven
Author-X-Name-Last: Buccola
Title: War, terror, and the tourism market in Israel
Abstract:
A supply and demand model of the Israeli hotel industry is developed,
distinguishing between its domestic and foreign sectors. Model simulations
are employed to examine the impacts of war and terrorist incidents on
tourist activity and hotel revenues. Foreign demand for Israeli hotel
stays is highly price-elastic and income-inelastic, and moderately
sensitive to terrorist events. Domestic demand is price-inelastic,
income-elastic, and terror-insensitive. In the wake of terror attacks,
hotels' supply or minimum prices to Israeli tourists shift downward,
reducing local market prices and encouraging more local tourism. However,
the magnitude of these shifts is minor, and the local market thus provides
little buffer for dropoffs in foreign tourism. By permitting excess
capacity in such fashion, hotels respond rationally to the price
inelasticity of local demand.
Journal: Applied Economics
Pages: 1335-1343
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110099252
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099252
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1335-1343
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Rezitis
Author-X-Name-First: Anthony
Author-X-Name-Last: Rezitis
Author-Name: Kostas Tsiboukas
Author-X-Name-First: Kostas
Author-X-Name-Last: Tsiboukas
Author-Name: Stauros Tsoukalas
Author-X-Name-First: Stauros
Author-X-Name-Last: Tsoukalas
Title: Measuring technical efficiency in the Greek agricultural sector
Abstract:
This paper measures the degree of technical efficiency of Greek farms at
discrete points in time. Stochastic frontier production functions are
estimated from four annual Farm Accountancy Data Network (FADN) surveys of
the 1992-1995 period. From the results, a measure of technical efficiency
is calculated for each farm for each year. The four distributions of
technical efficiency values are examined and compared. All four samples
show a wide range of farm-specific technical efficiency but efficiency is
improving over the period. The paper also presents frontier estimates for
small and large farms classified according to economic size. In that case,
technical efficiency measures are calculated and their distributions are
examined and compared. The results show that large farms are more
efficient than small farms. However, efficiency is improving in both size
farms over the period. In general, the results of this study indicate that
there is substantial scope for improving technical efficiency of Greek
farms.
Journal: Applied Economics
Pages: 1345-1357
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110099261
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099261
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1345-1357
Template-Type: ReDIF-Article 1.0
Author-Name: E. Gundlach
Author-X-Name-First: E.
Author-X-Name-Last: Gundlach
Author-Name: D. Rudman
Author-X-Name-First: D.
Author-X-Name-Last: Rudman
Author-Name: L. Wossmann
Author-X-Name-First: L.
Author-X-Name-Last: Wossmann
Title: Second thoughts on development accounting
Abstract:
The relative roles of factor inputs and productivity are estimated in
explaining the level of economic development. For a large sample of
countries, it is shown that international differences in factor inputs
account for between two thirds and three quarters of international
differences in output per worker if alternative identifying productivity
assumptions and a quality-adjusted measure of human capital are employed.
For a sample of OECD countries, it is found that all differences in output
per worker can be attributed to differences in factor inputs, leaving no
role for international productivity differences. This result supports the
reasoning of a traditional neoclassical growth model.
Journal: Applied Economics
Pages: 1359-1369
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110096327
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096327
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1359-1369
Template-Type: ReDIF-Article 1.0
Author-Name: Karl Taylor
Author-X-Name-First: Karl
Author-X-Name-Last: Taylor
Title: The impact of technology and trade upon the returns to education and occupation
Abstract:
This paper considers how technological change and globalization has
influenced the return to education and occupation in Great Britain over
the period 1973 to 1994. A number of papers in the literature have
documented increasing demand for individuals who possess higher skill
endowments than their peers. Both education and occupation can be
interpreted as an individual's observable skills and how technology and
trade have actually influenced returns to different educational and
occupational levels is something that has not been investigated in Great
Britain. For the empirical analysis estimates are based upon pooled cross
sections over time and also pseudo panel techniques to control for
unobservable heterogeneity.
Journal: Applied Economics
Pages: 1371-1377
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110096336
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096336
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1371-1377
Template-Type: ReDIF-Article 1.0
Author-Name: F. Voulgaris
Author-X-Name-First: F.
Author-X-Name-Last: Voulgaris
Author-Name: D. Asteriou
Author-X-Name-First: D.
Author-X-Name-Last: Asteriou
Author-Name: G. Agiomirgianakis
Author-X-Name-First: G.
Author-X-Name-Last: Agiomirgianakis
Title: Capital structure, asset utilization, profitability and growth in the Greek manufacturing sector
Abstract:
Greece's accession to the European Union (EU) has affected its economy
and its manufacturing sector. Large-size enterprises (LSEs) form a small
but vital part of Greek manufacturing and constitute a major component of
the country's stock market. According to finance theory, the capital
structure of a firm affects its capital cost and market value. This paper,
by using dynamic panel data techniques, investigates the determinants of
capital structure of LSEs in the Greek manufacturing sector. The findings
suggest that asset utilization, gross and net profitability and total
assets growth have a significant effect on the capital structure of LSEs.
This has straightforward policy implications. Following recent economic
developments, Greek firms are exposed to a stronger competition in the EU
and global markets, but also to new opportunities. In order to improve
their capital structure, Greek manufacturing LSEs need to achieve higher
asset utilization and profit margins through economies of scale attained
mainly by higher exports. Moreover, governmental measures aiming to
support LSEs' efforts should focus their impact on alleviating taxation,
reducing bureaucratic burdens, minimizing market imperfections and
subsidizing applications of new technology.
Journal: Applied Economics
Pages: 1379-1388
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110096822
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096822
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1379-1388
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Vazquez
Author-X-Name-First: Jesus
Author-X-Name-Last: Vazquez
Title: Does the Lucas critique apply during hyperinflation?: empirical evidence from four hyperinflationary episodes
Abstract:
Farmer (Review of Economic Studies, 58, 321-32, 1991) suggests that in a
model in which there are multiple rational expectations equilibria agents
may find it useful to coordinate their expectations in a unique rational
expectations equilibrium which is supported by a self-fulfilling forecast
rule having the property of being immune to the Lucas Critique. In this
paper, Farmer's hypothesis is tested using data from hyperinflationary
episodes. It is believed that those episodes are suitable for testing this
hypothesis because an agent who lives in a hyperinflationary environment
usually faces frequent changes in policy regime. The agent may thus choose
a selffulfilling forecast rule which is immune to the Lucas Critique as a
way of hedging against unanticipated policy regime switches. The empirical
results show mixed evidence on Farmer's hypothesis during the
hyperinflationary episodes studied.
Journal: Applied Economics
Pages: 1389-1397
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110096831
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110096831
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1389-1397
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Sastre Jimenez
Author-X-Name-First: Luis Sastre
Author-X-Name-Last: Jimenez
Title: Tourism revenues and residential foreign investment flows in Spain: a simultaneous model
Abstract:
The aim of this work is to analyse the determinants of the tourism
revenues and the residential foreign investment, in Spain, during the
period 1967-1998. To do so, a two equation simultaneous model is proposed
to be estimated. The specification highlights the simultaneous and direct
interdependence of the tourism revenues and the residential foreign
investment flows. This result contrasts with the traditional standard
specification of the international tourism demands in Spain. Nonlinear
simultaneous estimations, cointegration techniques and a battery of
specification tests are the econometric tools applied in the work.
Journal: Applied Economics
Pages: 1399-1410
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110099234
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099234
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1399-1410
Template-Type: ReDIF-Article 1.0
Author-Name: Sheng-Ping Yang
Author-X-Name-First: Sheng-Ping
Author-X-Name-Last: Yang
Title: Identifying a dominant firm's market power among sellers of a homogeneous product: an application to Alcoa
Abstract:
This paper measures the extent of Alcoa's (dominant firm) market power in
the post-war US aluminium industry. An indirect procedure that combines
estimation of the fringe supply elasticity, market demand elasticity, and
extant market share data generates the estimate of Alcoa's residual demand
elasticity which infers the firm's market power. Results show that Alcoa's
market power declines with fringe's expansion.
Journal: Applied Economics
Pages: 1411-1419
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110099270
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110099270
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1411-1419
Template-Type: ReDIF-Article 1.0
Author-Name: Germa Bel
Author-X-Name-First: Germa
Author-X-Name-Last: Bel
Title: Privatization: public offerings and political objectives
Abstract:
This paper empirically analyses the political and economic objectives
underlying privatization on the stock market. Particularly, the factors of
SIPs underpricing, are explained, and the study analyses whether the
change of political parties in government play a role on the issue. The
paper has two main findings. First, larger initial returns occurred in the
early stages of privatization. Second, the change of government from
left-wing to right-wing did not lead to significantly higher levels of
underpricing. The results show that governments are quite pragmatic with
respect to underpricing: maximizing proceeds from SIPs shows to be more
important than ideological differences between parties in government.
Journal: Applied Economics
Pages: 1421-1432
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110100826
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110100826
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1421-1432
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Liu
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Liu
Author-Name: Peter Burridge
Author-X-Name-First: Peter
Author-X-Name-Last: Burridge
Author-Name: P. J. N. Sinclair
Author-X-Name-First: P. J. N.
Author-X-Name-Last: Sinclair
Title: Relationships between economic growth, foreign direct investment and trade: evidence from China
Abstract:
This study investigates the causal links between trade, economic growth
and inward foreign direct investment (FDI) in China at the aggregate
level. The integration and cointegration properties of quarterly data are
analysed. Long-run relationships between growth, exports, imports and FDI
are identified in a cointegration framework, in which this paper finds
bi-directional causality between economic growth, FDI and exports.
Economic development, exports and FDI appear to be mutually reinforcing
under the open-door policy.
Journal: Applied Economics
Pages: 1433-1440
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110100835
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110100835
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1433-1440
Template-Type: ReDIF-Article 1.0
Author-Name: John Hayfron
Author-X-Name-First: John
Author-X-Name-Last: Hayfron
Title: Panel estimates of the earnings gap in Norway: do female immigrants experience a double earnings penalty?
Abstract:
This study explores the possibility that being both a 'female' and an
'immigrant' will impose an earnings disadvantage on immigrant women in
Norway. Well-known techniques are used to decompose the earnings gap
between Norwegian men and immigrant women into portions attributable to
productivity differentials, portions attributable to a gender effect, and
portions attributable to an ethnic effect. The analysis supports the
following conclusions: First, there is evidence of a double negative
effect on female immigrant earnings. Second, gender effect is more
important than ethnic effect. Finally, the discrimination estimates are
robust to the alternative methods used in decomposing Norwegian
men-immigrant women earnings gap.
Journal: Applied Economics
Pages: 1441-1452
Issue: 11
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110101429
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110101429
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Handle: RePEc:taf:applec:v:34:y:2002:i:11:p:1441-1452
Template-Type: ReDIF-Article 1.0
Author-Name: P. Garcia-Castrillo
Author-X-Name-First: P.
Author-X-Name-Last: Garcia-Castrillo
Author-Name: A. Montanes
Author-X-Name-First: A.
Author-X-Name-Last: Montanes
Author-Name: F. Sanz-Gracia
Author-X-Name-First: F.
Author-X-Name-Last: Sanz-Gracia
Title: A worldwide assessment of scientific production in economics (1992-1997)
Abstract:
The aim of this article is to analyse the worldwide production in
economics. To that end, bibliometric indicators are constructed by way of
a database made-up of 55 international journals, covering the period
1992-1997. A ranking of the leading thousand international affiliations is
established and quality indices of the first 200 are presented. Finally, a
detailed analysis is carried out at country level and with respect to the
12 leading countries.
Journal: Applied Economics
Pages: 1453-1475
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110102770
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110102770
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1453-1475
Template-Type: ReDIF-Article 1.0
Author-Name: Gaines Liner
Author-X-Name-First: Gaines
Author-X-Name-Last: Liner
Author-Name: Rob Roy McGregor
Author-X-Name-First: Rob Roy
Author-X-Name-Last: McGregor
Title: Optimal annexation
Abstract:
Previous empirical studies of the effects of annexation on municipal
expenditures and municipal efficiency have yielded mixed results. Here it
is argued that as municipalities grow through annexation, there may be
administrative and service delivery efficiencies that, at least for a
time, more than offset the inefficiencies of a heightened degree of
monopoly power in the provision of infrastructure and services. If this is
the case, then the rates of growth of both per capita taxes and per capita
spending will decrease with annexation. Eventually, though, administrative
and service inefficiencies are likely to develop as the city's geographic
area and population base increase, and monopoly inefficiencies are likely
to worsen. If this is the case, then the rates of growth of both per
capita taxes and per capita spending will increase with annexation. Thus,
there may be some level of annexation activity at which the growth of per
capita taxes and the growth of per capita spending will be minimized.
Municipal annexation, taxation, and expenditure outcomes from the 1970s
are analysed in an empirical framework that reflects the interactions
among these variables in dynamic municipal settings. The results are
consistent with the existence of an optimal level of annexation.
Journal: Applied Economics
Pages: 1477-1485
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110108035
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110108035
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1477-1485
Template-Type: ReDIF-Article 1.0
Author-Name: Terry Robinson
Author-X-Name-First: Terry
Author-X-Name-Last: Robinson
Author-Name: Andrzej Baniak
Author-X-Name-First: Andrzej
Author-X-Name-Last: Baniak
Title: The volatility of prices in the English and Welsh electricity pool
Abstract:
The volatility of spot prices has been a notable feature of the English
and Welsh Electricity Pool since its formation in 1990. This study
investigates the possibility that the volatility of spot prices is
strongly affected by the functioning of the contract market for
electricity. This paper suggest that generators with market power may have
an incentive to create volatility in the spot market in order to benefit
from higher risk premia in the contract market. A simple theoretical model
is used to illustrate this argument. Nonparametric techniques are used to
test for changes in volatility after the expiry of the coal contracts in
1993 and during the price cap of 1994-1996. Strongly significant increases
in volatility are found in the latter period.
Journal: Applied Economics
Pages: 1487-1495
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110108063
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110108063
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1487-1495
Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Almus
Author-X-Name-First: Matthias
Author-X-Name-Last: Almus
Title: What characterizes a fast-growing firm?
Abstract:
The paper seeks to empirically identify factors that influence the
probability of being a fast-growing firm in Eastern and Western Germany.
Descriptive analyses have shown that most firms experience only small
positive or negative employment growth or stagnate over time. The job
generation mechanism rests with a handful of firms that increase their
employment significantly over time. The empirical analysis shows that the
probability of being a fast-growing firm depends on different factors when
separating Eastern and Western Germany as well as using different
definitions of fast-growing firms. Moreover, the analysis shows that
technology-intensive manufacturing branches and knowledge-based
business-related services do not generate the majority of fast-growing
firms.
Journal: Applied Economics
Pages: 1497-1508
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110105010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110105010
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1497-1508
Template-Type: ReDIF-Article 1.0
Author-Name: Therese Hindman Persson
Author-X-Name-First: Therese Hindman
Author-X-Name-Last: Persson
Title: Welfare calculations in models of the demand for sanitation
Abstract:
Empirical and theoretical research on the demand for health inputs has
been, and still is, extensive. However, it is not only important to
analyse how household choice is affected by alternative and household
specific attributes, but it is equally important to analyse the welfare
implications of, for example, a change in the price of different inputs.
Policymakers and donor agencies involved in sanitation programmes will
typically be interested in the welfare implications of different policy
alternatives. This paper analyses the welfare implications of a change in
the price of certain sanitation related inputs. In addition, a comparison
of the welfare estimates derived from the 'standard' approach, i.e. the
conditional logit model and the more novel approach i.e. the random
parameter/mixed logit model is undertaken. The findings suggest that model
choice indeed has implications for the results since the welfare estimates
from the two models differ quite remarkably.
Journal: Applied Economics
Pages: 1509-1518
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110102752
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110102752
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1509-1518
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew McKenzie
Author-X-Name-First: Andrew
Author-X-Name-Last: McKenzie
Author-Name: Matthew Holt
Author-X-Name-First: Matthew
Author-X-Name-Last: Holt
Title: Market efficiency in agricultural futures markets
Abstract:
Market efficiency and unbiasedness are tested in four agricultural
commodity futures markets - live cattle, hogs, corn, and soybean meal -
using cointegration and error correction models with GQARCH-in-mean
processes. Results indicate each market is unbiased in the long run,
although cattle, hogs and corn futures markets exhibit short-run
inefficiencies and pricing biases. Models for cattle and corn outperform
futures prices in out-of-sample forecasting. Results also suggest
short-run time-varying risk premiums in cattle and hog futures markets.
Journal: Applied Economics
Pages: 1519-1532
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110102761
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110102761
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1519-1532
Template-Type: ReDIF-Article 1.0
Author-Name: Alejandra Mizala
Author-X-Name-First: Alejandra
Author-X-Name-Last: Mizala
Author-Name: Pilar Romaguera
Author-X-Name-First: Pilar
Author-X-Name-Last: Romaguera
Author-Name: Dario Farren
Author-X-Name-First: Dario
Author-X-Name-Last: Farren
Title: The technical efficiency of schools in Chile
Abstract:
This paper assesses the technical efficiency of schools in Chile, which
is defined as the capacity of schools to generate the maximum output
(academic achievement) given the quantity of inputs they use. Two
alternative methodological approaches for measuring efficiency are used:
(i) estimation of a stochastic production frontier, and (ii) data
envelopment analysis (DEA), which allows identification of the efficient
production frontier of the schools analysed nonparametrically. Each of
these techniques has advantages and limitations, which are discussed in
the paper; they lead, however, to the same conclusions when a sample of
2000 schools is analysed. The results obtained provide interesting points
for educational policy discussion in Chile.
Journal: Applied Economics
Pages: 1533-1552
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110103256
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110103256
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1533-1552
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Wen Rong Liu
Author-X-Name-First: Wen Rong
Author-X-Name-Last: Liu
Author-Name: Steven Caudill
Author-X-Name-First: Steven
Author-X-Name-Last: Caudill
Title: Tax-and-spend, spend-and-tax, or fiscal synchronization: new evidence for ten countries
Abstract:
Cointegration and vector autoregression are used to test the
'Tax-and-Spend', 'Spend-and-Tax', and 'Fiscal Synchronization' for ten
countries using annual time-series data over the period 1951 to 1996.
Three of them are part of the newly industrialized countries of Asia
(South Korea, Taiwan, and Thailand) and seven are industrialized countries
(Australia, Canada, Japan, New Zealand, South Africa, UK, and the USA).
This paper includes GDP as a control variable into the model like
Baghestani and Mcnown (1994), Ross and Payne (1998), and Koren and
Stiassny (1998). The Johansen (1988) and Johansen and Juselius (1990)
cointegration test results indicate that these three variables are
cointegrated with two cointegrating vectors for South Korea, one vector
for Australia, Canada, South Africa, Taiwan, UK, and the USA, and no
vector for Japan, New Zealand, and Thailand. The results from Granger
causality tests suggest unidirectional causality running from revenues to
spending, supporting the 'Tax-and-Spend' hypothesis, for Japan, South
Korea, Taiwan, UK, and the USA. The opposite relationship, supporting the
'Spend-andTax' hypothesis, holds only for Australia and South Africa. In
the case of Canada, this study finds a feedback existing between revenues
and spending, supporting the 'Fiscal Synchronization' hypothesis. For New
Zealand and Thailand, these results support none of the hypotheses.
Journal: Applied Economics
Pages: 1553-1561
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110103265
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110103265
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1553-1561
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Barba Navaretti
Author-X-Name-First: Giorgio Barba
Author-X-Name-Last: Navaretti
Author-Name: Enrico Santarelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Santarelli
Author-Name: Marco Vivarelli
Author-X-Name-First: Marco
Author-X-Name-Last: Vivarelli
Title: The role of subsidies in promoting Italian joint ventures in least developed and transition economies
Abstract:
This paper analyses the impact of subsidies for the promotion of Italian
joint ventures (JVs) aimed at LDCs and transition economies. The empirical
analysis is carried out on a unique dataset of 172 JVs interviewed during
1998 by means of a closed-answer qualitative-quantitative questionnaire.
The main finding of the study is that, although there is a significant
deadweight component in incentive policy, the subsidized firms are
significantly more likely to grow. Moreover, the JVs comprising new firms
(which need to grow to survive) also have a higher employment performance
than average, as do the (labour intensive) JVs motivated by the search for
lower labour costs, and the JVs in east European countries.
Journal: Applied Economics
Pages: 1563-1569
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110105029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110105029
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1563-1569
Template-Type: ReDIF-Article 1.0
Author-Name: Vani Borooah
Author-X-Name-First: Vani
Author-X-Name-Last: Borooah
Title: Does unemployment make men less 'marriageable'?
Abstract:
This paper distinguishes three marital states: married; cohabiting; and
single. It examines, applying the method of multinomial logit to data on
men, aged 18-30, drawn from the Family Expenditure Survey for the UK, the
extent to which their probabilities, of being in each of these states, is
affected by their economic status and by their educational level. It
concludes that being unemployed significantly reduces the chances of men
being married.
Journal: Applied Economics
Pages: 1571-1582
Issue: 12
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110108044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110108044
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Handle: RePEc:taf:applec:v:34:y:2002:i:12:p:1571-1582
Template-Type: ReDIF-Article 1.0
Author-Name: Lourens Broersma
Author-X-Name-First: Lourens
Author-X-Name-Last: Broersma
Author-Name: Frank A. G. Den Butter
Author-X-Name-First: Frank A. G. Den
Author-X-Name-Last: Butter
Title: An explorative empirical analysis of the influence of labour flows on wage formation
Abstract:
This study presents an explorative econometric analysis of the influence
of labour market flows on wage formation. It applies the vector
cointegration and common trends methodology of Johansen (Likelihood-based
Inference in Cointegrated Vector Autoregresssive Models, OUP, Oxford,
1995). According to this approach, a combination of the flow of layoffs
(flow from employment to unemployment) and the flow of filled vacancies
(successful matches) appears to be an adequate alternative to the
unemployment rate as indicator of labour market tightness in the wage
equation for The Netherlands.
Journal: Applied Economics
Pages: 1583-1592
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110116405
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110116405
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1583-1592
Template-Type: ReDIF-Article 1.0
Author-Name: L. Fanelli
Author-X-Name-First: L.
Author-X-Name-Last: Fanelli
Author-Name: M. Mazzocchi
Author-X-Name-First: M.
Author-X-Name-Last: Mazzocchi
Title: A cointegrated VECM demand system for meat in Italy
Abstract:
This article applies cointegration techniques to estimate a monthly
demand system for meat in Italy. In contrast to existing studies where
Engle and Granger's two step procedure and Triangular Vector Error
Correction Model (TVECM) representations are usually exploited, it applies
a cointegrated Vector Error Correction Model (VECM) where also prices and
expenditure enter endogenously the system and the cointegration rank is
not assumed to be known a priori but subject to inference. It highlights
some of the advantages of using the VECM compared to the TVECM, including
the possibility of testing the cointegration rank of the system and the
(weak and strong) exogeneity of prices and expenditure within a
well-specified statistical model. This may lead to remarkable improvements
in the efficiency of parameters system estimates.
Journal: Applied Economics
Pages: 1593-1605
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110111167
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111167
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1593-1605
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Papadas
Author-X-Name-First: Christos
Author-X-Name-Last: Papadas
Author-Name: W. George Hutchinson
Author-X-Name-First: W. George
Author-X-Name-Last: Hutchinson
Title: Neural network forecasts of input-output technology
Abstract:
A significant part of the literature on input-output (IO) analysis is
dedicated to the development and application of methodologies forecasting
and updating technology coefficients and multipliers. Prominent among such
techniques is the RAS method, while more information demanding econometric
methods, as well as other less promising ones, have been proposed.
However, there has been little interest expressed in the use of more
modern and often more innovative methods, such as neural networks in IO
analysis in general. This study constructs, proposes and applies a
Backpropagation Neural Network (BPN) with the purpose of forecasting IO
technology coefficients and subsequently multipliers. The RAS method is
also applied on the same set of UK IO tables, and the discussion of
results of both methods is accompanied by a comparative analysis. The
results show that the BPN offers a valid alternative way of IO technology
forecasting and many forecasts were more accurate using this method.
Overall, however, the RAS method outperformed the BPN but the difference
is rather small to be systematic and there are further ways to improve the
performance of the BPN.
Journal: Applied Economics
Pages: 1607-1615
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110118133
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110118133
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1607-1615
Template-Type: ReDIF-Article 1.0
Author-Name: Vicent Arago
Author-X-Name-First: Vicent
Author-X-Name-Last: Arago
Author-Name: A. Fernandez
Author-X-Name-First: A.
Author-X-Name-Last: Fernandez
Title: Expiration and maturity effect: empirical evidence from the Spanish spot and futures stock index
Abstract:
The paper studies how the time remaining to the expiration date of
derivative markets affects the volatility of the IBEX-35 index (expiration
effect) and its futures market (maturity effect). The innovation of the
study lies in both effects being studied together for the Spanish stock
market using bivariate ECM-GARCH including dummy variables that express
the time left to expiration day. The results obtained show that, during
the week of the expiration day, the conditional variance of both markets
increases without presenting any significant behaviour in the correlation
level. During the second week, however, the conditional variance
diminishes and the degree of correlation between both markets increases.
Journal: Applied Economics
Pages: 1617-1626
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110111086
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111086
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1617-1626
Template-Type: ReDIF-Article 1.0
Author-Name: K. Aristotelous
Author-X-Name-First: K.
Author-X-Name-Last: Aristotelous
Title: The impact of the post-1972 floating exchange-rate regime on US exports
Abstract:
By employing the techniques of cointegration and error-correction models,
this article empirically investigates the impact of the post-1972 floating
exchange-rate regime on the volume of US bilateral exports to Canada,
Germany, Japan and the UK. The econometric models specified in the
analysis were estimated using quarterly data for the sample period
1959:1-1997:4. The empirical results provide evidence that the post-1972
exchange-rate regime is less conducive to trade than the Bretton-Woods
fixed exchange rate regime.
Journal: Applied Economics
Pages: 1627-1632
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110112535
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110112535
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1627-1632
Template-Type: ReDIF-Article 1.0
Author-Name: Don Webber
Author-X-Name-First: Don
Author-X-Name-Last: Webber
Title: Policies to stimulate growth: should we invest in health or education?
Abstract:
Empirical studies in the literature on economic growth have focused on
the affect of education and yet Knowles and Owen (1995, 1997) found
health, proxied by life expectancy, to be highly statistically significant
with education having a modest role. This study extends their model and
employs variables that are more conducive to policy formulation: calorific
intake and school enrolment ratios. Results suggest that reducing
undernutrition would only make a modest contribution to economic growth
while increasing enrolment ratios, especially secondary, has a positive
and more significant effect. Policies to increase economic growth should
favour investments in education over health.
Journal: Applied Economics
Pages: 1633-1643
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110115109
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110115109
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1633-1643
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: Mohamed Mehdi Jelassi
Author-X-Name-First: Mohamed Mehdi
Author-X-Name-Last: Jelassi
Title: The Fisher hypothesis: a multi-country analysis
Abstract:
This paper tests whether the Fisher hypothesis holds for a sample of 26
countries by assessing the long run relationship between nominal interest
rates and inflation rates taking into consideration the short run dynamics
of interest rates. The empirical evidence supports the hypothesis that
there is a one-to-one relationship between the interest rate and inflation
for more than half of the countries under study.
Journal: Applied Economics
Pages: 1645-1655
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110115118
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110115118
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1645-1655
Template-Type: ReDIF-Article 1.0
Author-Name: Harminder Battu
Author-X-Name-First: Harminder
Author-X-Name-Last: Battu
Author-Name: Robert McMaster
Author-X-Name-First: Robert
Author-X-Name-Last: McMaster
Author-Name: Michael White
Author-X-Name-First: Michael
Author-X-Name-Last: White
Title: An empirical investigation of Oliver Williamson's 'organization of work'
Abstract:
Oliver Williamson argues that the attributes of the employment contract,
like intermediate transactions in general, are essentially driven by the
specificity of assets. In the case of the organization of work it is the
particular attributes of labour that determines the transaction costs of
any given governance structure. The paper presents a stylized account of
the transaction cost model of the efficient organization of work,
stressing an underlying tension and ambiguity in the transaction cost
framework. The paper exploits a unique dataset to test, for the first time
with British data, Williamson's transaction cost predictions concerning
the nature of employment contracts. Williamson tacitly assumes that asset
specificity is exogenous in general. However, there is evidence in the
literature that labour specificity is endogenous to employment contracts.
The paper endeavours to demonstrate that there is empirical evidence to
suggest that specialized labour is indeed endogenous in the transaction
cost model. The major implication is that the organization of work cannot
be considered as an example of the efficient organization of intermediate
transactions.
Journal: Applied Economics
Pages: 1657-1669
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110115127
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110115127
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1657-1669
Template-Type: ReDIF-Article 1.0
Author-Name: Ying-Foon Chow
Author-X-Name-First: Ying-Foon
Author-X-Name-Last: Chow
Author-Name: John Cotsomitis
Author-X-Name-First: John
Author-X-Name-Last: Cotsomitis
Author-Name: Andy Kwan
Author-X-Name-First: Andy
Author-X-Name-Last: Kwan
Title: Multivariate cointegration and causality tests of Wagner's hypothesis: evidence from the UK
Abstract:
The purpose of this paper is to examine the issue of omitted variables in
testing the long run validity of Wagner's hypothesis. Using UK data for
the period 1948 to 1997, this paper first investigates the secular
relationship between public spending and economic development in a
bivariate system. In all cases considered, our bivariate cointegration
tests indicate the absence of a long run equilibrium condition. However,
the introduction of a third variable (money supply) re-establishes a
cointegrating relationship between public expenditure and economic
development variables. In addition, the results of the Granger's
multivariate causality test indicate a unidirectional causality from
income and money supply to public spending in the long run, thus providing
support for Wagner's hypothesis.
Journal: Applied Economics
Pages: 1671-1677
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110115659
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110115659
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1671-1677
Template-Type: ReDIF-Article 1.0
Author-Name: U. -G. Gerdtham
Author-X-Name-First: U. -G.
Author-X-Name-Last: Gerdtham
Author-Name: M. Lothgren
Author-X-Name-First: M.
Author-X-Name-Last: Lothgren
Title: New panel results on cointegration of international health expenditure and GDP
Abstract:
This article tests for existence of cointegration between health
expenditure and GDP using data from 25 OECD countries for the period
19607ndash;1997. The empirical modelling is based on a heterogeneous
bivariate vector error correction panel model that allows for trending
data as well as intercepts and trends in the cointegrating relations.
Univariate country-by-country and panel unit root tests generally fail to
reject the null of a unit root in the health expenditure and GDP
variables. Country-by-country results based on the Johansen multivariate
likelihood-based inference indicate somewhat mixed results on
country-specific cointegration with a rank of one found for 12 countries
and a rank of zero for the remaining 13 countries. Application of a new
panel test for cointegration rank with higher power than the individual
tests indicates that health expenditure and GDP are cointegrated around
linear trends.
Journal: Applied Economics
Pages: 1679-1686
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110116397
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110116397
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1679-1686
Template-Type: ReDIF-Article 1.0
Author-Name: Sumru Altug
Author-X-Name-First: Sumru
Author-X-Name-Last: Altug
Author-Name: Alpay Filiztekin
Author-X-Name-First: Alpay
Author-X-Name-Last: Filiztekin
Title: Scale effects, time-varying markups, and the cyclical behaviour of primal and dual productivity
Abstract:
This paper presents estimates of the degree of returns to scale using
nonparametric measures of primal and dual productivity for 2-digit US
manufacturing industries. As part of the analysis, the cyclical behaviour
of primal and dual productivity measures are considered, time-varying
markups are allowed for, and the small sample properties of the
instrumental variables estimator used to derive the estimates from the
primal and dual relations examined. Both the primal and dual estimates
indicate the existence of increasing returns to scale for the durable
goods industries. The simulation results indicate there is a slight
tendency for the dual equation estimates to overestimate the degree of
returns to scale. However, small sample bias appears to be most severe for
the non-durable goods industries.
Journal: Applied Economics
Pages: 1687-1702
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110116414
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110116414
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1687-1702
Template-Type: ReDIF-Article 1.0
Author-Name: E. Skoufias
Author-X-Name-First: E.
Author-X-Name-Last: Skoufias
Author-Name: A. Suryahadi
Author-X-Name-First: A.
Author-X-Name-Last: Suryahadi
Title: A cohort analysis of wages in Indonesia
Abstract:
This article uses repeated cross-sectional data for the years 1986 to
1998 to examine how the median and spread in the distribution of wages
among workers of different age and gender were affected by the economic
growth and contraction in output during this period. It finds that it is
mainly the younger cohorts of male and female workers that have reaped the
benefits of the growing employment and wages in the formal sector. The
growing wage sector has been absorbing many of the young entrants into the
labour market but more male workers than female workers. The increases in
the median wages of these younger cohorts have been accompanied by a rise
in the inequality of earnings. The level as well as the increase in
dispersion is also higher for females of younger cohorts than male
cohorts. The declines in real wages since the 1997 crisis have been
relatively evenly distributed among male and female workers and across
different age cohorts, while the impact of the crisis on wage inequality
has been mixed.
Journal: Applied Economics
Pages: 1703-1710
Issue: 13
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110118115
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110118115
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Handle: RePEc:taf:applec:v:34:y:2002:i:13:p:1703-1710
Template-Type: ReDIF-Article 1.0
Author-Name: Jenifer Piesse
Author-X-Name-First: Jenifer
Author-X-Name-Last: Piesse
Author-Name: Bruce Hearn
Author-X-Name-First: Bruce
Author-X-Name-Last: Hearn
Title: Equity market integration versus segmentation in three dominant markets of the Southern African Customs Union: cointegration and causality tests
Abstract:
Empirical tests of theories of financial market integration and
segmentation have predominantly focused on developed OECD countries and
the emerging markets of Asia Pacific. This study uses a unique panel of
equity market indices from the principal Southern African Customs Union
(SACU) markets. It tests the hypothesis of market integration using a
cointegration approach. Markets that are found to be integrated are then
tested for evidence of Granger causality through an error correction
mechanism. Results obtained using VAR modelling techniques are compared to
those using an ARDL model. While results lend support to existing trade,
macroeconomic and developmental linkages and effects between and within
the countries, there is some evidence for the presence of a regional
factor common to African Emerging Markets that explains causality from
Namibia to South Africa. The results support the view that institution
building has progressed, which is considered to be a valuable contribution
to growth promotion policies in SSA and market integration throughout
financial markets in the SADC community.
Journal: Applied Economics
Pages: 1711-1722
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110119448
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110119448
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1711-1722
Template-Type: ReDIF-Article 1.0
Author-Name: Federico Revelli
Author-X-Name-First: Federico
Author-X-Name-Last: Revelli
Title: Testing the taxmimicking versus expenditure spill-over hypotheses using English data
Abstract:
Spatial interaction among local governments in tax setting and public
spending decisions is receiving increasing attention in the applied public
economics literature. Spatial interaction models rely on the presence of
an externality from local budget making: in traditional public finance
models, external effects originate either from interjurisdictional
resource flows due to tax competition for a mobile base, or from local
public expenditure spill-overs into neighbouring jurisdictions. However,
the recent political agency/yardstick competition literature has stressed
the role of 'informational' externalities between neighbouring
jurisdictions, and predicted tax mimicry at the local level. The actual
relevance of the above hypotheses clearly needs to be assessed
empirically. In this paper, an attempt is made at discriminating between
alternative sources of local fiscal interaction, by using data on the
English municipal authorities' budgets. While both public spending levels
and local property tax rates exhibit considerable positive spatial
autocorrelation, maximum likelihood and instrumental variables estimation
results suggest that the interdependence among local governments can be
attributed to mimicking behaviour in local property tax setting.
Journal: Applied Economics
Pages: 1723-1731
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210122353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210122353
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1723-1731
Template-Type: ReDIF-Article 1.0
Author-Name: Pundarik Mukhopadhaya
Author-X-Name-First: Pundarik
Author-X-Name-Last: Mukhopadhaya
Title: The trend of welfare disparity among subgroups of population in Australia 1983-1984 - 1993-1994
Abstract:
The aim of this paper is to estimate the trend of social welfare for
Australia using 1983-1984, 1988-1989 and 1993-1994 Household Expenditure
Survey data. The functional form of the Social Welfare Function (SWF) was
derived by Sen, Degum, Yitzhaki and Shesinski (all independently). Since
the function contains the Gini coefficient as the inequality parameter, it
could not be formally disaggregated by subgroups of population. This
paper, using a method of subgroup decomposition of the Gini coefficient
developed by Podder, attempts to disaggregate the SWF. With this method it
is now possible to identify disadvantaged groups by their relative shares
in total welfare. In addition the method is used to determine effect of
economic growth on specific subgroups, and in turn, on total social
welfare. This study is based on the Australian economy. Distribution of
relative shares of total social welfare among various regional groups are
identified, groups determined by occupational status and groups determined
by country of birth. The effect on society's welfare for a percentage
change in income of a group and the trend of relative welfare of a
specific group are also computed. This information can be used in a
variety of social decision making situations, including cost benefit
analysis.
Journal: Applied Economics
Pages: 1733-1741
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210124171
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124171
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1733-1741
Template-Type: ReDIF-Article 1.0
Author-Name: Sarmistha Pal
Author-X-Name-First: Sarmistha
Author-X-Name-Last: Pal
Title: Household sectoral choice and effective demand for rural credit in India
Abstract:
An analysis of the ICRISAT data from three Indian villages raises concern
about the extent of rationing mechanism inhibiting the spread of formal
credit in rural India where a significant proportion of households do not
have any outstanding loan or borrow from the informal sector only. A
limited-dependent econometric analysis of the factors jointly determining
household sectoral choice and effective demand for informal loan
conditional on whether a formal loan is available suggests that compared
to formal loan easy and adequate access and prompt recovery are
significant determinants of the popularity and viability of informal rural
credit among sample households; also some households substitute labour
income to ease the extent of credit. Thus, rationing of the formal credit
is not the only factor inhibiting the spread of formal credit in the study
villages.
Journal: Applied Economics
Pages: 1743-1755
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210121228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210121228
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1743-1755
Template-Type: ReDIF-Article 1.0
Author-Name: Amalia Yiannaka
Author-X-Name-First: Amalia
Author-X-Name-Last: Yiannaka
Author-Name: Konstantinos Giannakas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Giannakas
Author-Name: Kien Tran
Author-X-Name-First: Kien
Author-X-Name-Last: Tran
Title: Medium, message and advertising effectiveness in the Greek processed meats industry
Abstract:
This paper examines the effectiveness of advertising in the fast-growing
Greek processed meats sector using an unbalanced panel data set of 34
firms during the period 1983-1997. In analysing the relationship between
firms' sales and advertising this study differentiates between the
type/content of the advertising message and the medium used to communicate
it. Advertising expenditures are disaggregated into company and product
campaigns in television, radio, and print media. Empirical results
strongly reject the hypothesis of homogeneous consumer response to all
kinds of advertising that is implicit in studies that aggregate
advertising expenditures. The results also indicate an inefficient
allocation of advertising resources by the firms of the sector;
advertising in the least utilized print media was determined to be by far
the most effective strategy during the study period.
Journal: Applied Economics
Pages: 1757-1763
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110118755
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110118755
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1757-1763
Template-Type: ReDIF-Article 1.0
Author-Name: Willie Belton
Author-X-Name-First: Willie
Author-X-Name-Last: Belton
Author-Name: Richard Cebula
Author-X-Name-First: Richard
Author-X-Name-Last: Cebula
Author-Name: Usha Nair-Reichert
Author-X-Name-First: Usha
Author-X-Name-Last: Nair-Reichert
Title: Money and the dispersion of relative prices revisited
Abstract:
This study extends the literature on relative price dispersion by
addressing two questions that have remained largely unanswered: (a) What
is the impact on relative price dispersion of the variance of the
uncertain relationship between money and prices? (b) Is there evidence
across industries of a differential impact on price dispersion of the
variance of the uncertain relationship between money and prices? These
issues are examined in a bivariate GARCH-M model using monthly data from
1963-1997. The results at the aggregate level indicate that the variance
of the uncertain relationship between money and prices has a positive and
significant impact on relative price dispersion during the period 1963 to
1997. Disaggregated analysis at the industry level suggests that the
magnitude of the impact of the variance of the uncertain money-price
relationship differs greatly across industries and generally tends to have
a greater impact on the price dispersion of durable goods than on the
price dispersion of nondurable goods. This study also has important
implications regarding the effectiveness of rules-based monetary policy in
eliminating uncertainty associated with discretionary monetary policy.
Journal: Applied Economics
Pages: 1765-1773
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210124162
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124162
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1765-1773
Template-Type: ReDIF-Article 1.0
Author-Name: Leopold Sogner
Author-X-Name-First: Leopold
Author-X-Name-Last: Sogner
Author-Name: Alfred Stiassny
Author-X-Name-First: Alfred
Author-X-Name-Last: Stiassny
Title: An analysis on the structural stability of Okun's law--a cross-country study
Abstract:
Okun's law postulates an inverse relationship between movements of the
unemployment rate and the real gross domestic product (GDP). This article
investigates Okun's law for 15 OECD countries and checks for its the
structural stability. By using data on employment and the labour force
whether structural instability is caused either from the demand side or
supply side is inferred.
Journal: Applied Economics
Pages: 1775-1787
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210124180
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124180
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1775-1787
Template-Type: ReDIF-Article 1.0
Author-Name: Shin-Jong Lin
Author-X-Name-First: Shin-Jong
Author-X-Name-Last: Lin
Author-Name: Lu-Chu Chien
Author-X-Name-First: Lu-Chu
Author-X-Name-Last: Chien
Author-Name: Mei Lin Lee
Author-X-Name-First: Mei Lin
Author-X-Name-Last: Lee
Title: Estimating the factors determining the demand for induced abortions among married women in Taiwan
Abstract:
This paper purports to estimate the characteristics of women who had
experiences of abortion in 1991 based on an economic model of fertility.
The study makes use of a national survey on the knowledge of, attitude
towards, and practice of family planning and reproductive health among
married women in Taiwan. The results show that older women with higher
family income and who live in urban areas were more likely to have the
pregnancy terminated. In addition, the decision to have an abortion was
negatively correlated with prior pregnancy loss, but positively associated
with the number of previous live births. On the other hand, the
availability of abortion services as measured by the number of legal
abortion providers at city and county levels had a negative effect on the
demand for abortions. The local female unemployment rate was found to be
positively correlated with the woman's decision to have an abortion.
Journal: Applied Economics
Pages: 1789-1798
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210124199
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124199
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1789-1798
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Yen
Author-X-Name-First: Steven
Author-X-Name-Last: Yen
Author-Name: Kamhon Kan
Author-X-Name-First: Kamhon
Author-X-Name-Last: Kan
Author-Name: Shew-Jiuan Su
Author-X-Name-First: Shew-Jiuan
Author-X-Name-Last: Su
Title: Household demand for fats and oils: two-step estimation of a censored demand system
Abstract:
A censored system of household fat and oil demand equations is estimated
with a two-step procedure, using cross-sectional data from the 1987-1988
US Nationwide Food Consumption Survey. Own price and total expenditure
elasticities are close to unity and there is no evidence of gross
substitutability. Compensated elasticities suggest net substitution among
the products considered.
Journal: Applied Economics
Pages: 1799-1806
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210125008
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210125008
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1799-1806
Template-Type: ReDIF-Article 1.0
Author-Name: K. Doroodian
Author-X-Name-First: K.
Author-X-Name-Last: Doroodian
Author-Name: Chulho Jung
Author-X-Name-First: Chulho
Author-X-Name-Last: Jung
Author-Name: Ahmet Yucel
Author-X-Name-First: Ahmet
Author-X-Name-Last: Yucel
Title: Estimating the equilibrium real exchange rate: the case of Turkey
Abstract:
Journal: Applied Economics
Pages: 1807-1812
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210125503
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210125503
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1807-1812
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastjan Strasek
Author-X-Name-First: Sebastjan
Author-X-Name-Last: Strasek
Author-Name: Timotej Jagric
Author-X-Name-First: Timotej
Author-X-Name-Last: Jagric
Title: Cyclical patterns in aggregate economic activity of Slovene economy
Abstract:
This paper studies cyclic patterns in the Slovene economy with spectral
analysis. It examines if the transition in Slovenia was marked by a
statistically significant movement of aggregate economic activity, which
corresponds to the definition of business cycle proposed by Mitchell and
Burns (1946). It finds that in the period 1992-2000 a statistically
significant cyclic component is present. The cyclic component oscillates
with the frequency of 33.3 months. The results obtained in this paper
suggest, that in the observed period two full-length cycles can be
identified.
Journal: Applied Economics
Pages: 1813-1819
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210126179
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126179
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1813-1819
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Author-Name: Grant Coble-Neal
Author-X-Name-First: Grant
Author-X-Name-Last: Coble-Neal
Title: Labour and capital saving technical change in telecommunications
Abstract:
The Australian telecommunications sector is being improved and extended
through substantial recent investment in intelligent technology such as
digital switching, fibre optics, satellite and cellular transmission, and
the Internet. These technologies are being progressively integrated with
technology from the broadcasting, computer and electronics industries,
providing a unified information infrastructure for information
transmission and processing. Technological progress embodied in new
equipment has the effect of increasing the efficiency of the factors of
production. Such efficiency increases can be biased towards a particular
factor. For instance, the impact of labour-augmenting technical change is
a decline in the cost of labour per unit of production. When such biases
are apparent the relativity between the costs of labour and capital per
unit of production is changed. In the longer term, technical change can
impact on the rate of employment growth and also on the rate of capital
accumulation. In this study the Australian telecommunications cost
structure is examined for the period 1919 to 1988. To measure labour
saving and capital saving technical change a translog cost model is
estimated. Multiproduct telecommunications cost studies typically employ
the translog cost model (Evans and Heckman, 1984; Rooller, 1990a; 1990b;
Shin and Ying, 1992; McKenzie and Small, 1997). The translog model places
no a priori restrictions on substitution possibilities among the factors
of production, and allows scale economies to vary with the level of
output.
Journal: Applied Economics
Pages: 1821-1828
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210126188
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126188
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1821-1828
Template-Type: ReDIF-Article 1.0
Author-Name: Margherita Giannoni
Author-X-Name-First: Margherita
Author-X-Name-Last: Giannoni
Author-Name: Theodore Hitiris
Author-X-Name-First: Theodore
Author-X-Name-Last: Hitiris
Title: The regional impact of health care expenditure: the case of Italy
Abstract:
Decentralization invests the subcentral authorities of a country with
autonomy in political and economic power the exercise of which may widen
interregional divergence and inequality. This paper provides evidence
demonstrating that in the case of Italy the central government's policies
for rationalization and containment of the growth of health care
expenditure in combination with decentralization in the administration and
provision of health care have resulted in interregional inequality,
aggravating the existing regional divergence.
Journal: Applied Economics
Pages: 1829-1836
Issue: 14
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210126809
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126809
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Handle: RePEc:taf:applec:v:34:y:2002:i:14:p:1829-1836
Template-Type: ReDIF-Article 1.0
Author-Name: Jill Ann Holman
Author-X-Name-First: Jill Ann
Author-X-Name-Last: Holman
Author-Name: Rebecca Neumann
Author-X-Name-First: Rebecca
Author-X-Name-Last: Neumann
Title: Evidence on the cross-country transmission of monetary shocks
Abstract:
The international transmission of monetary shocks between the US and
Canada is explored. Focusing on real variables such as consumption,
investment, employment, and the bilateral trade balance, along with
measures of US and Canadian money, the empirical analysis examines the
impact of a monetary shock in one country on real activity in both
countries. The long-run analysis provides evidence of cointegration among
the variables and suggests that money plays an important role in the
equilibrium relationships between the two countries. Variance
decompositions and impulse response functions reveal interesting avenues
of real transmission in the short run. The short-run analysis provides
strong evidence that US monetary shocks affect real activity in both the
USA and Canada. The analysis also indicates that Canadian monetary
disturbances affect Canadian and US real activity, and that many of these
effects are similar in magnitude to the effects of US monetary shocks. The
importance of the nominal exchange-rate regime is also discussed.
Journal: Applied Economics
Pages: 1837-1857
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210135827
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135827
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1837-1857
Template-Type: ReDIF-Article 1.0
Author-Name: Leigh Drake
Author-X-Name-First: Leigh
Author-X-Name-Last: Drake
Author-Name: Richard Simper
Author-X-Name-First: Richard
Author-X-Name-Last: Simper
Title: X-efficiency and scale economies in policing: a comparative study using the distribution free approach and DEA
Abstract:
This study uses both parametric and nonparametric techniques to analyse
scale economies and relative efficiency levels in policing in England and
Wales. Both techniques suggest the presence of significant scale effects
in policing and considerable divergence in relative efficiency levels
across police forces.
Journal: Applied Economics
Pages: 1859-1870
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210126818
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126818
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1859-1870
Template-Type: ReDIF-Article 1.0
Author-Name: Luiz De Mello
Author-X-Name-First: Luiz
Author-X-Name-Last: De Mello
Title: Public finance, government spending and economic growth: the case of local governments in Brazil
Abstract:
The impact of local government spending on output growth is estimated
using a panel of Brazilian municipalities during 1985-1994. Attention is
focused on three expenditure categories, housing/urbanization,
health/sanitation, and transport services, which are expected to be
growth-enhancing, and their sources of finance (local taxes,
intergovernmental transfers, and borrowing). The determinants of these
spending categories are also examined. The size of the municipality,
measured by the resident population, is shown to affect government
spending nonlinearly. This is a contribution to the recent empirical
literature on the linkages between decentralized government spending,
public finances, and economic growth at the local, rather than national,
level.
Journal: Applied Economics
Pages: 1871-1883
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210128726
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128726
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1871-1883
Template-Type: ReDIF-Article 1.0
Author-Name: Chengqi Wang
Author-X-Name-First: Chengqi
Author-X-Name-Last: Wang
Author-Name: Pamela Siler
Author-X-Name-First: Pamela
Author-X-Name-Last: Siler
Author-Name: Xiaming Liu
Author-X-Name-First: Xiaming
Author-X-Name-Last: Liu
Title: The relative economic performance of foreign subsidiaries in UK manufacturing
Abstract:
This paper compares the economic performance of UK and foreign-owned
firms in UK manufacturing industry. A panel data set covering 14 233 firms
for the period 1992-1996 is used and the influences of firm-, industry-
and country-specific advantages on productivity are examined. The results
of the study show that labour productivity is higher in foreign
subsidiaries than in UK firms and that foreign subsidiaries as a whole
employ higher levels of human capital and enjoy greater economies of
scale. A further source of productivity advantage for US subsidiaries is
their higher level of intangible assets, and for European and Japanese
subsidiaries their higher level of capital intensity. The results have
policy implications for the targeting of promotion activities to attract
FDI.
Journal: Applied Economics
Pages: 1885-1892
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210128762
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128762
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1885-1892
Template-Type: ReDIF-Article 1.0
Author-Name: Suleiman Abubader
Author-X-Name-First: Suleiman
Author-X-Name-Last: Abubader
Title: Institutional changes and breakpoints in Israeli trade
Abstract:
This paper examines the structural changes in Israeli trade trends since
the 1970s. Structural change tests do not reject the null of no breaks in
Israeli trade trends after Israel signed FTA agreements with the EEC and
the USA, or after Israel's 1991 new trade policy. The tests, however, show
significant evidence for breakpoints in 1993 in Israel's trade shares with
three countries who had adhered strongly to the Arab boycott. This result
suggests that the Middle East peace process, which began in 1991,
considerably weakened the boycott and brought about positive changes in
Israeli long-term trade patterns.
Journal: Applied Economics
Pages: 1893-1901
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210127204
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210127204
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1893-1901
Template-Type: ReDIF-Article 1.0
Author-Name: Olga Canto
Author-X-Name-First: Olga
Author-X-Name-Last: Canto
Title: Climbing out of poverty, falling back in: low income stability in Spain
Abstract:
The study of the probability of entering or escaping a low income spell
is not sufficient to fully describe a household's experience in
deprivation. If poverty spells are recurrent in time, the persistency of
poverty for a given household is not completely described unless the
household's likelihood of a fall back into deprivation shortly after exit
is considered. It is found that by combining the re-entry equation results
with those of the exit equation, one can discuss, in a comprehensive way,
which household characteristics promote welfare stability or instability
and poverty persistence or transience. Results indicate that one-third of
households who manage to leave poverty in Spain return to it shortly after
exit. This upward income mobility, if maintained for a year, appears to
enable a state of non-poverty for a lengthy period. Better-educated
households and households with a spouse are more stable in their income
level. Also, the point reached in the income distribution after a jump out
of poverty is more a determinant for reducing the household's re-entry
probability than is the duration out of poverty.
Journal: Applied Economics
Pages: 1903-1916
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210129392
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129392
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1903-1916
Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Badillo
Author-X-Name-First: Rosa
Author-X-Name-Last: Badillo
Author-Name: Jorge Belaire-Franch
Author-X-Name-First: Jorge
Author-X-Name-Last: Belaire-Franch
Author-Name: Dulce Contreras
Author-X-Name-First: Dulce
Author-X-Name-Last: Contreras
Title: Spurious rejection of the stationarity hypothesis in the presence of a break point
Abstract:
It is shown that KPSS and LMC tests may be seriously biased when there is
a shift in the level or in the trend of the time series under study.
Journal: Applied Economics
Pages: 1917-1923
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210129400
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129400
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1917-1923
Template-Type: ReDIF-Article 1.0
Author-Name: David Evans
Author-X-Name-First: David
Author-X-Name-Last: Evans
Author-Name: Haluk Sezer
Author-X-Name-First: Haluk
Author-X-Name-Last: Sezer
Title: A time preference measure of the social discount rate for the UK
Abstract:
In this study the social discount rate for the UK is estimated, the
result compared with the Treasury approved rate and the main associated
policy implications considered. A case is argued for reducing the official
discount rate in appraisals involving all long-term social projects. The
estimate of the elasticity of the marginal utility of consumption, an
important component of the discount rate, is supported by plausible and
statistically valid regression results. The need for further work relating
to other major european countries is identified so that discount rate
comparisons can be made on a consistent basis.
Journal: Applied Economics
Pages: 1925-1934
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210128753
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128753
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1925-1934
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Groothuis
Author-X-Name-First: Peter
Author-X-Name-Last: Groothuis
Author-Name: John Whitehead
Author-X-Name-First: John
Author-X-Name-Last: Whitehead
Title: Does don't know mean no? Analysis of 'don't know' responses in dichotomous choice contingent valuation questions
Abstract:
The 'don't know' response option in contingent valuation dichotomous
choice questions is analysed using data from both willingness to pay and
willingness to accept studies. An empirical analysis is conducted to
determine whether respondents are stating a response similar to yes or no
responses or a middle response. It is found that don't know responses are
similar to no responses in the willingness to pay study. In the
willingness to accept study, it is found that the 'don't know' responses
are similar to a middle response. It is further suggested that researchers
consider calculating ambivalence bounds when a don't know response is a
middle response.
Journal: Applied Economics
Pages: 1935-1940
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210128717
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128717
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1935-1940
Template-Type: ReDIF-Article 1.0
Author-Name: Mercedes Gumbau-Albert
Author-X-Name-First: Mercedes
Author-X-Name-Last: Gumbau-Albert
Author-Name: Joaquin Maudos
Author-X-Name-First: Joaquin
Author-X-Name-Last: Maudos
Title: The determinants of efficiency: the case of the Spanish industry
Abstract:
The aim of this paper is to analyse the factors explaining the technical
efficiency of Spanish industrial sectors during the period 1991-1994 using
the Survey of Business Strategies (SBE) of the Ministry of Industry and
Energy. It analyses whether efficiency can be explained by factors
external to the firm such as the degree of competition in the markets in
which it operates, characteristics of the firm (size, organization,
advantages of location, participation of public capital, etc.), as well as
the effects of dynamic disturbances that may affect the degree of
utilization of the productive capacity.
Journal: Applied Economics
Pages: 1941-1948
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210127213
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210127213
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1941-1948
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Orbe
Author-X-Name-First: Jesus
Author-X-Name-Last: Orbe
Author-Name: Eva Ferreira
Author-X-Name-First: Eva
Author-X-Name-Last: Ferreira
Author-Name: Vicente Nunez-Anton
Author-X-Name-First: Vicente
Author-X-Name-Last: Nunez-Anton
Title: Length of time spent in Chapter 11 bankruptcy: a censored partial regression model
Abstract:
This paper investigates original issuers of high yield bonds in Chapter
11 bankruptcy to determine which factors affect the length of time spent
in Chapter 11. In order to do this analysis a flexible new duration model
is proposed, the censored partial regression model. This model allows
consideration of the effect of some variables on the duration using a
nonparametric functional form. It is found that the choice of prepackaged
Chapter 11, the length of time negotiating before filling for Chapter 11,
the profitability, the highly leveraged transactions, the participation on
different disputes, the role of vulture funds and some institutional
changes turn out to be relevant to analyse this duration.
Journal: Applied Economics
Pages: 1949-1957
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210127222
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210127222
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1949-1957
Template-Type: ReDIF-Article 1.0
Author-Name: Damian Ward
Author-X-Name-First: Damian
Author-X-Name-Last: Ward
Title: The costs of distribution in the UK life insurance market
Abstract:
The cost of direct and independent distribution in the UK life insurance
sector over the period 1990-1997 is examined. This is a novel contribution
to the literature that until now has focused almost solely on distribution
in the non-life sector. Unlike the non-life sector the distribution of
life insurance is complicated by the existence of investor protection
policies. Which in the UK are believed to have increased the use of
independent agents. Using a pooled data set of 44 companies between 1990
and 1997, this study finds little evidence for such a view. Cost benefits
are found for firms focusing in one mode of distribution. From a modelling
of the distribution decision this finding maybe attributed to firms
choosing distribution systems which match the transactional problems
associated with their product mix and/or mode of corporate governance.
Journal: Applied Economics
Pages: 1959-1968
Issue: 15
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210129428
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129428
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Handle: RePEc:taf:applec:v:34:y:2002:i:15:p:1959-1968
Template-Type: ReDIF-Article 1.0
Author-Name: Dominique Gross
Author-X-Name-First: Dominique
Author-X-Name-Last: Gross
Title: Three million foreigners, three million unemployed? Immigration flows and the labour market in France
Abstract:
This paper investigates the effect of the flows of immigrant workers on
the French labour market from the mid-1970s to the mid-1990s. Using a
system of equations for unemployment, labour-force participation, the real
wage and the immigration rate, it is shown that, in the long run, both
legal and amnestied immigrant workers, and immigrant families lower the
unemployment rate permanently. In the short-run, the arrival of immigrants
increases unemployment slightly with an impact effect similar to that of
an increase in domestic labour-force participation. The composition of
immigration flows matters and the results indicate that the distribution
between workers from the European Union and other regions of the world,
also more skilled and less skilled workers, should remain balanced.
Journal: Applied Economics
Pages: 1969-1983
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110111095
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111095
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:1969-1983
Template-Type: ReDIF-Article 1.0
Author-Name: Knut Blind
Author-X-Name-First: Knut
Author-X-Name-Last: Blind
Title: Driving forces for standardization at standardization development organizations
Abstract:
This paper investigates sector-specific driving forces for the
standardization activities at national standardization organizations. In
the first part, theoretical hypotheses concerning sector-specific
standardization are derived. The empirical test is performed by a two-step
procedure. First, based on 19 sectors, these hypotheses are tested
empirically for Germany. The results show that R&D-intensive sectors
standardize very actively; additionally, intellectual property rights play
an important role. Furthermore, standardization increases with the
concentration of the enterprises up to a certain threshold, where
standardization activities decline again. Finally, export-intensive
sectors tend to standardize more. Secondly, because of the small data
base, these hypotheses are empirically tested in a pool model, an
international cross-section approach based on 20 sectors and seven
countries. These results are generally in concordance with the findings of
Germany. After a summary of the results, recommendations for future
standardization practice are given.
Journal: Applied Economics
Pages: 1985-1998
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110111158
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111158
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:1985-1998
Template-Type: ReDIF-Article 1.0
Author-Name: Sherrill Shaffer
Author-X-Name-First: Sherrill
Author-X-Name-Last: Shaffer
Title: Ownership structure and market conduct among Swiss banks
Abstract:
This paper explores the degree of competition among each of several major
categories of Swiss banks, using a structural econometric model. Conduct
is found to vary across ownership structures, with foreign-owned banks
exhibiting the most market power and state-owned or mutual banks the
least. The results are consistent with agency theory but contrast with
some previous empirical results. They are also consistent with a Swiss
premium in the provision of international banking services, though this
latter hypothesis is not formally tested.
Journal: Applied Economics
Pages: 1999-2009
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110112526
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110112526
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:1999-2009
Template-Type: ReDIF-Article 1.0
Author-Name: S. Nahar
Author-X-Name-First: S.
Author-X-Name-Last: Nahar
Author-Name: B. Inder
Author-X-Name-First: B.
Author-X-Name-Last: Inder
Title: Testing convergence in economic growth for OECD countries
Abstract:
This article explores tests for absolute convergence in economic activity
among a set of countries. It proposes a new test procedure that allows the
researcher to identify particular countries within the group, which might
not be converging. It also proposes that convergence among a set of
similar countries is better thought of as movement toward a group leader,
rather than movement towards a group mean. Applying the new procedure to
22 OECD countries it finds strong evidence for absolute convergence for
the vast majority of countries towards their common steady state level.
This article also points out why using standard unit root or cointegration
tests with Bernard and Durlauf's definition of convergence is
inappropriate.
Journal: Applied Economics
Pages: 2011-2022
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840110117837
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110117837
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2011-2022
Template-Type: ReDIF-Article 1.0
Author-Name: David Griffiths
Author-X-Name-First: David
Author-X-Name-Last: Griffiths
Title: The attrition rate of United States coins in circulation: some evidence from Federal Reserve data
Abstract:
The United States Mint recently conducted a coin attrition study designed
to estimate the rate at which coins are withdrawn from circulation in
order to better plan coin production. This paper reports on the analysis
of a large sample of coins taken from the United States Federal Reserve
Bank cash offices used to estimate coin attrition rates by denomination.
The dollar value of the circulating stock of coin available to serve the
needs of commerce is estimated to be $11.8 billion (£7.6 billion).
Journal: Applied Economics
Pages: 2023-2029
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210122362
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210122362
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2023-2029
Template-Type: ReDIF-Article 1.0
Author-Name: John Sawkins
Author-X-Name-First: John
Author-X-Name-Last: Sawkins
Title: Examination performance in Scottish secondary schools: an ordered logit approach
Abstract:
This paper analyses the determinants of educational outcomes for Scottish
secondary schools. Using an ordered logit model with data on school
examination performance for pupils in the last year of compulsory
education, separate equations are estimated for 1993-1994 and 1998-1999.
The empirical results, in line with previous British studies, underline
the importance of family, peer group and school influences in determining
educational outcomes. They cast doubt, however, on suggestions that there
is an 'optimal' size of school.
Journal: Applied Economics
Pages: 2031-2041
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210124559
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124559
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2031-2041
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Hinks
Author-X-Name-First: Timothy
Author-X-Name-Last: Hinks
Title: Gender wage differentials and discrimination in the New South Africa
Abstract:
Research into discrimination within South Africa (SA) has focused on
racial issues, with gender issues being largely ignored. This study aims
to estimate gender wage differentials and through decomposition analysis
understand the different problems faced by white, black, coloured and
Indian/Asian in 1995. It is found that white and Asian females suffer
greater gender discrimination than their black and coloured counterparts,
which could be a signal to future problems black and coloured females may
encounter. The largest gender wage differential is faced by white females,
whilst the lowest is encountered by coloured and black females. A possible
explanation for this finding is the low (subsistence) wages that the black
and coloured population groups command relative to other population
groups.
Journal: Applied Economics
Pages: 2043-2052
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210124991
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210124991
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2043-2052
Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Tiezzi
Author-X-Name-First: Silvia
Author-X-Name-Last: Tiezzi
Title: Environmental defensive expenditures and households behaviour in Italy
Abstract:
The paper explores the role of Environmental Defensive Expenditures in
the consumption behaviour of Italian households. Environmental Defensive
Expenditures are not borne to increase households' welfare, but to prevent
or avoid the effects of a worsening environmental quality. The literature
on environmental accounting argues that economic growth in industrialized
countries is accompanied by an increasing load of defensive activities
that may lead to a reorientation of consumption behaviour. In this work
this hypothesis is tested using annual data on mean consumption
expenditures of Italian households from 1985 to 1996. A complete system of
demand is estimated and short-run price elasticities of demand for
Defensive Expenditures are calculated. The complete system of demand
functions is specified using the Quadratic Almost Ideal Demand System
proposed by Banks, Blundell and Lewbel. Results show that there is very
low substitution between the demand for the six aggregate goods in which
total expenditure is here divided and the Environmental Defensive
Expenditures. Thus it seems that an increase in Environmental Defensive
Expenditures, driven by a change in environmental quality, would not lead
to a change in the consumption pattern, at least as far as Italian
households are concerned.
Journal: Applied Economics
Pages: 2053-2061
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210126197
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126197
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2053-2061
Template-Type: ReDIF-Article 1.0
Author-Name: David Bernstein
Author-X-Name-First: David
Author-X-Name-Last: Bernstein
Title: Fringe benefits and small businesses: evidence from the federal reserve board small business survey
Abstract:
Data from the 1993 National Survey of Small Businesses (NSSBF) is used to
analyse the factors affecting the provision of pensions and health
insurance by small businesses. The race of the business owner is found to
impact the provision of taxadvantaged fringe benefits, even after
accounting for a wide range of other economic and demographic variables.
It is not possible to determine why owner race impacts the provision of
fringe benefits by small businesses but the significance of the race
variable might reflect a lower level of marketing effort by financial
service firms in minority-dominated communities. The owner education
variable, which is also significant in both the pension and health
insurance models, could also be a proxy for the availability of general
information about the importance of fringe benefits. With the exception of
the sole proprietorship variable, the demographic and economic variables
appear to have similar effects on the provision of both pensions and
health insurance by small businesses. Some sole proprietors appear to
prefer pension benefits to health insurance benefits possibly because
pensions allow the business owner to shield some assets in the case of
bankruptcy.
Journal: Applied Economics
Pages: 2063-2067
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210126205
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210126205
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2063-2067
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Yamada
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Yamada
Title: Real interest rate equalization: some empirical evidence from the three major world financial markets
Abstract:
This article examines the linkage of real interest rates of the three
major world financial markets (USA, Japan and the UK) with the use of
cointegration methods. Unlike previous works, the investigation uses a
trivariate vector autoregressive (VAR) model in which a constant term in
the common stochastic trends space is excluded. Based on data generated
after the liberalization of Japan's foreign exchange market at the end of
1980 (1981:1-1998:12), the article finds some empirical evidence
indicating that the extent of the departure from the long-run real
interest rate equalization (RIE) is not very large, although the null
hypothesis of the long-run RIE is rejected in most cases.
Journal: Applied Economics
Pages: 2069-2073
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210128708
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128708
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2069-2073
Template-Type: ReDIF-Article 1.0
Author-Name: M. Bahmani-Oskooee
Author-X-Name-First: M.
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: S. Chomsisengphet
Author-X-Name-First: S.
Author-X-Name-Last: Chomsisengphet
Title: Stability of M2 money demand function in industrial countries
Abstract:
Journal: Applied Economics
Pages: 2075-2083
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210128744
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128744
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2075-2083
Template-Type: ReDIF-Article 1.0
Author-Name: Louis De Mesnard
Author-X-Name-First: Louis
Author-X-Name-Last: De Mesnard
Title: Forecast output coincidence and biproportion: two criteria to determine the orientation of an economy. Comparison for France (1980-1997)
Abstract:
The method of forecast output coincidence used to determine if sectors
are demandsided or supply-sided in an input-output framework mixes two
effects, the structural effect (choosing between demand and supply side
models) and the effect of an exogenous factor (final demand or
added-value). The note recalls that another method is possible, the
comparison of the stability of technical and allocation coefficients,
generalized by the biproportional filter: if for a sector, after
biproportional filtering, column coefficients are more stable than row
coefficients, then this sector is declared as not supply-sided (but one
cannot decide that it is demand-sided anyway), and conversely.
Journal: Applied Economics
Pages: 2085-2091
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210128771
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128771
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2085-2091
Template-Type: ReDIF-Article 1.0
Author-Name: Norman Thurston
Author-X-Name-First: Norman
Author-X-Name-Last: Thurston
Title: Physician behavioural responses to variation in marginal income tax rates: longitudinal evidence
Abstract:
The longitudinal component of the Young Physicians Surveys (1987, 1991)
is used to examine the impact of changes in marginal tax rates on key
indicators of physician behaviour. Following the federal Tax Reform Act of
1986, many states' marginal income tax rates changed. This variation is
used to estimate the responsiveness of work hours, HMO contracting and
practice size to changes in taxes.
Journal: Applied Economics
Pages: 2093-2104
Issue: 16
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210134549
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210134549
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Handle: RePEc:taf:applec:v:34:y:2002:i:16:p:2093-2104
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Berger
Author-X-Name-First: Mark
Author-X-Name-Last: Berger
Author-Name: Jodi Messer
Author-X-Name-First: Jodi
Author-X-Name-Last: Messer
Title: Public financing of health expenditures, insurance, and health outcomes
Abstract:
The effects of public financing of health expenditures, insurance
coverage and other factors on health outcomes are examined within health
production models estimated using 1960-1992 data across 20 OECD countries.
Mortality rates are found to depend on the mix of health care expenditures
and the type of health insurance coverage. Increases in the publicly
financed share of health expenditures are associated with increases in
mortality rates. Increases in inpatient and ambulatory insurance coverage
are associated with reduced mortality. The effects of GDP, health
expenditures and age structure on mortality are similar to those in
previous studies. Tobacco use, alcohol use, fat consumption, female labour
force participation, and education levels are also significantly related
to overall mortality rates. Increases in income inequality are associated
with lower mortality rates, suggesting that the negative relationship
between inequality and health outcomes suggested by some previous studies
does not remain when a more complete model is estimated. The result that
increases in public financing increase mortality rates is robust to a
number of changes in specifications and samples. Thus, as countries
increase the level of their health expenditures, they may want to avoid
increasing the proportion of their expenditures that are publicly
financed.
Journal: Applied Economics
Pages: 2105-2113
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210135665
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135665
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2105-2113
Template-Type: ReDIF-Article 1.0
Author-Name: Saeid Mahdavi
Author-X-Name-First: Saeid
Author-X-Name-Last: Mahdavi
Title: The response of the US export prices to changes in the dollar's effective exchange rate: further evidence from industry level data
Abstract:
The relationship between the dollar's effective exchange rate and the
export price indexes for 13 two-digit US manufacturing industries is
analysed to determine (i) which industry adjusts its dollar export price
to dampen or amplify the effect of the exchange rate fluctuations on the
foreign-currency price of its exports and (ii) whether the response of the
export price index to appreciation and depreciation of the exchange rate
is asymmetric. For several industries, evidence consistent with dampening
the foreign-currency price of exports in an asymmetric fashion is found.
The implications of the results for the price competitiveness of the
industries studied is discussed.
Journal: Applied Economics
Pages: 2115-2125
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210135674
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135674
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2115-2125
Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Title: Industrial concentration and competition in Malaysian manufacturing
Abstract:
Industrial concentration is the most widely studied area among various
elements of market structure in the industrial organization literature.
This paper is a first attempt to analyse the determinants of changes in
industry concentration over time in the case of Malaysia. Using a partial
adjustment model, a cross-sectional analysis is carried out against a
sample of manufacturing industries between 1986 and 1996. Domestic factors
in influencing competition e.g. capital intensity, advertising intensity
and market size are found to be significant in most cases to explain the
level of concentration. Considering variable rate of adjustment of
concentration, an increase in labour productivity of large firms and high
entry rates are found to be significant for faster adjustment towards
equilibrium level. Compared with other developed countries, the annual
rate of structural adjustment is found to be slow in the case of Malaysian
manufacturing.
Journal: Applied Economics
Pages: 2127-2134
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210135683
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135683
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2127-2134
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Delorme
Author-X-Name-First: Charles
Author-X-Name-Last: Delorme
Author-Name: David Kamerschen
Author-X-Name-First: David
Author-X-Name-Last: Kamerschen
Author-Name: Peter Klein
Author-X-Name-First: Peter
Author-X-Name-Last: Klein
Author-Name: Lisa Ford Voeks
Author-X-Name-First: Lisa Ford
Author-X-Name-Last: Voeks
Title: Structure, conduct and performance: a simultaneous equations approach
Abstract:
A simultaneous equations framework is used to study the relationship
between structure, conduct and performance in US manufacturing in the
1980s and 1990s. The paper expands on earlier
structure-conduct-performance studies by using a lag structure to signify
that structure, conduct and performance do not affect one another
contemporaneously. Findings support some aspects of the traditional
structure-conduct-performance model, but challenge others. First, the data
suggest that industry structure does not depend on current industry
performance. Second, little evidence is found that industry conduct,
proxied by advertising, is affected by industry structure. Third, results
show that industry performance does not depend on industry conduct, though
it is sensitive to industry structure. The main findings are that (1)
concentration does not depend on firm profitability, though profitability
depends on concentration, (2) advertising follows a process that is
independent of the factors considered here, and (3) advertising seems to
have no effect on profitability.
Journal: Applied Economics
Pages: 2135-2141
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210135836
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135836
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2135-2141
Template-Type: ReDIF-Article 1.0
Author-Name: Terence Mills
Author-X-Name-First: Terence
Author-X-Name-Last: Mills
Author-Name: Geoffrey Wood
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Wood
Title: Wages and prices in the UK
Abstract:
This paper investigates the relationship between wages and prices in the
UK using a VECM formulation and generalized impulse response functions and
persistence profiles. Because of significant feedbacks, it finds that
fluctuations in wage growth cannot be used directly to predict
fluctuations in inflation.
Journal: Applied Economics
Pages: 2143-2149
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210135845
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135845
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2143-2149
Template-Type: ReDIF-Article 1.0
Author-Name: B. Mak Arvin
Author-X-Name-First: B. Mak
Author-X-Name-Last: Arvin
Author-Name: Francisco Barillas
Author-X-Name-First: Francisco
Author-X-Name-Last: Barillas
Title: Foreign aid, poverty reduction, and democracy
Abstract:
Eradication of poverty is the most pervasive goal of donors' foreign aid
programmes. As a result, there has been much research on the degree of
correlation between aid and poverty reduction. However, this work to date
has shed little light on the direction of causation between the two
variables. Using the method of Granger causality, and conditioning aid and
poverty on the state of democracy in developing countries, this study asks
whether aid flows impact poverty, whether poverty influences aid flows, or
whether causality proceeds in both directions simultaneously. While the
results identify no causal relationships in some of the sub-samples, they
point to the existence of a multitude of relationships across others.
Journal: Applied Economics
Pages: 2151-2156
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210136718
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210136718
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2151-2156
Template-Type: ReDIF-Article 1.0
Author-Name: Viju Ipe
Author-X-Name-First: Viju
Author-X-Name-Last: Ipe
Author-Name: Subhash Bhagwat
Author-X-Name-First: Subhash
Author-X-Name-Last: Bhagwat
Title: Chicago's water market: dynamics of demand, prices and scarcity rents
Abstract:
Chicago and its suburbs are experiencing an increasing demand for water
from a growing population and economy and may experience water scarcity in
the near future. The Chicago metropolitan area has nearly depleted its
groundwater resources to a point where interstate conflicts with Wisconsin
could accompany an increased reliance on those sources. Further, the
withdrawals from Lake Michigan is limited by the Supreme Court decree. The
growing demand and indications of possible scarcity suggest a need to
reexamine the pricing policies and the dynamics of demand. The study
analyses the demand for water and develops estimates of scarcity rents for
water in Chicago. The price and income elasticities computed at the means
are -0.002 and 0.0002 respectively. The estimated scarcity rents ranges
from $0.98 to $1.17 per thousand gallons. The results indicate that the
current prices do not fully account for the scarcity rents and suggest a
current rate with in the range $1.53 to $1.72 per thousand gallons.
Journal: Applied Economics
Pages: 2157-2163
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210138383
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138383
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2157-2163
Template-Type: ReDIF-Article 1.0
Author-Name: Emili Tortosa-Ausina
Author-X-Name-First: Emili
Author-X-Name-Last: Tortosa-Ausina
Title: Financial costs, operating costs, and specialization of Spanish banking firms as distribution dynamics
Abstract:
There exists a remarkable concern among financial analysts and policy
makers about the high level of cost dispersion in banking. A model of
distribution dynamics is applied to the Spanish banking companies in order
to analyse whether such a dispersion is so high and if some factors like,
for instance, specialization factors might somewhat influence the dynamics
of both financial and operating expenses. Results show that there does not
appear to exist a decrease in the level of cost dispersion, although
firms' relative positions are changing. Yet, when controlling for the
varying output mixes, firms produce results which differ much, as
dispersion - assessed by means of density functions estimated
nonparametrically - decreases substantially, suggesting concurrence is
higher among firms with similar output mixes.
Journal: Applied Economics
Pages: 2165-2176
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210138400
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138400
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2165-2176
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Gonzalo
Author-X-Name-First: Maria Teresa
Author-X-Name-Last: Gonzalo
Title: A new look at the UI effect on transitions from unemployment into wage employment in Spain: the limited duration of the UI benefits entitlement
Abstract:
This article is a new look at the study of the unemployment insurance
effect on the transition probability from unemployment into wage
employment in Spain. It is found that individuals increase their search
effort and reduce their reservation wage as the unemployment insurance
benefit entitlement exhaustion approaches, and their exit rate equals that
of the unemployed who never got benefits from the exhaustion moment.
Financial constraints are not important in Spain. Business cycle affects
more to long-term unemployed. And, finally, it is found that the
probability of being offered a vacancy decreases with time spent in
unemployment, having allowed for unobservable heterogeneity.
Journal: Applied Economics
Pages: 2177-2187
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210148067
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148067
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2177-2187
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Morris
Author-X-Name-First: Stephen
Author-X-Name-Last: Morris
Author-Name: Alistair McGuire
Author-X-Name-First: Alistair
Author-X-Name-Last: McGuire
Title: The private net present value and private internal rate of return to becoming a nurse in Great Britain
Abstract:
The private net present value and private internal rate of return to
becoming a nurse in Great Britain is estimated. The calculations are made
using the standard equations inputted with data from the New Earnings
Survey and the British Household Panel Survey. Basic age-earnings profiles
are adjusted for mortality, unemployment, other causes of economic
inactivity, and discontinuation from training. The conclusions are that:
(1) there is a high private internal rate of return to becoming a nurse in
Great Britain relative to other occupations; (2) using the internal rate
of return criterion is inappropriate when there exists a crossover
marginal time preference rate, which is shown to be the case here; and,
(3) using the net present value criterion there are net financial benefits
to becoming a nurse in Great Britain for individuals with a marginal time
preference rate of 8-13% or more.
Journal: Applied Economics
Pages: 2189-2200
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210139328
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139328
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2189-2200
Template-Type: ReDIF-Article 1.0
Author-Name: M. Camarero
Author-X-Name-First: M.
Author-X-Name-Last: Camarero
Author-Name: J. Ordonez
Author-X-Name-First: J.
Author-X-Name-Last: Ordonez
Author-Name: C. R. Tamarit
Author-X-Name-First: C. R.
Author-X-Name-Last: Tamarit
Title: Monetary transmission in Spain: a structural cointegrated VAR approach
Abstract:
This paper analyses the monetary policy channels in Spain using a
cointegrated structural VAR approach which explicitly accounts for
endogenous policy reactions in a small open economy. Evidence is found of
one cointegrating relation which is identified as a long-run money demand
function. In addition, stability tests are applied to this relationship to
assess whether there has been a change of monetary regime. The
impulse-responses for the non-monetary shocks as well as the absence of
the puzzles traditionally found in the empirical literature, suggest that
the model specification identifies the monetary policy shocks correctly.
Thus, according to our results, a monetary contraction causes a weak
downward response in the price level, as well as an increase in both short
and long-run nominal interest rates, a decrease in aggregate output and an
exchange rate appreciation.
Journal: Applied Economics
Pages: 2201-2212
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210138419
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138419
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2201-2212
Template-Type: ReDIF-Article 1.0
Author-Name: Vittoria Cerasi
Author-X-Name-First: Vittoria
Author-X-Name-Last: Cerasi
Author-Name: Barbara Chizzolini
Author-X-Name-First: Barbara
Author-X-Name-Last: Chizzolini
Author-Name: Marc Ivaldi
Author-X-Name-First: Marc
Author-X-Name-Last: Ivaldi
Title: Branching and competition in the European banking industry
Abstract:
In this study branching costs and competitiveness of European banks are
measured by fitting a monopolistic competition model to a representative
sample drawn from nine EEC banking industries in the period from 1990 to
1996. In the theoretical model, banks decide strategically the size of
their branching network anticipating the degree of competition faced on
interest rates. From the structural equations of the model an econometric
test is derived in order to measure branching costs and degree of
competition in banking services. The empirical analysis captures their
changing over time together with the impact of various European directives
aiming at deregulating the banking industry. Furthermore the study shows
persistence of segmentation acoss EEC banking industries.
Journal: Applied Economics
Pages: 2213-2225
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210138392
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138392
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2213-2225
Template-Type: ReDIF-Article 1.0
Author-Name: B. Andreosso-O'Callaghan
Author-X-Name-First: B.
Author-X-Name-Last: Andreosso-O'Callaghan
Author-Name: Guoqiang Yue
Author-X-Name-First: Guoqiang
Author-X-Name-Last: Yue
Title: Sources of output change in China: 1987-1997: application of a structural decomposition analysis
Abstract:
Since the beginning of the economic reforms implemented in the industrial
sectors of China, the economy has grown and changed rapidly. The high GDP
growth rates recorded since 1985 have stimulated unprecedented changes in
the economic structure of this developing economy. The major causes of the
changes are: the increase in consumption and investment, production
technological change and trade. The objective was to analyse this type of
structural change, and to explore the sources of economic growth during
the period 1987-1997, by using the method of structural decomposition
analysis (SDA). The chosen SDA method, based on the comparison between two
input-output tables, allowed us to decompose each sector's and industry's
output growth; it enabled the relative impact of final demand and
technological change of each industry on overall growthto be measured.
Journal: Applied Economics
Pages: 2227-2237
Issue: 17
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210139346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139346
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Handle: RePEc:taf:applec:v:34:y:2002:i:17:p:2227-2237
Template-Type: ReDIF-Article 1.0
Author-Name: Yin-Wong Cheung
Author-X-Name-First: Yin-Wong
Author-X-Name-Last: Cheung
Author-Name: Frank Westermann
Author-X-Name-First: Frank
Author-X-Name-Last: Westermann
Title: Output dynamics of the G7 countries--stochastic trends and cyclical movements
Abstract:
Using a time series framework, the paper studies the interactions of the
annual real per capita GDP data of the G7 countries. Evidence is found of
six common nonstationary processes behind the international output
dynamics. In addition, there is evidence for the existence of a common
business cycle among these countries. The trend and cycle components of
each output series are obtained with a procedure that accounts for the
presence of both the common nonstationary and cyclical factors. It is
found that the relative variability and the correlation of the trend and
cycle components are not similar across the G7 countries.
Journal: Applied Economics
Pages: 2239-2247
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210150866
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210150866
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2239-2247
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Title: Does black market exchange rate volatility deter the trade flows? Iranian experience
Abstract:
Previous studies that investigated the impact of exchange rate volatility
on the trade flows, employed official exchange rate data to construct a
measure of exchange rate uncertainty. In this paper we show that in
countries that there is a black market for foreign exchange, the black
market exchange rate volatility could have adverse effect on the trade
flows. We show this by using data from Iran and cointegration analysis.
Journal: Applied Economics
Pages: 2249-2255
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210138455
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138455
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2249-2255
Template-Type: ReDIF-Article 1.0
Author-Name: L. C. Gasparini
Author-X-Name-First: L. C.
Author-X-Name-Last: Gasparini
Title: Microeconometric decompositions of aggregate variables: an application to labour informality in Argentina
Abstract:
This article illustrates the use of microeconometric decomposition
techniques to characterize changes in aggregate variables. In particular,
it studies the effect of changes in the employment structure on the labour
informality rate for salaried workers in the greater Buenos Aires area
(Argentina). To that aim it computes the difference between the
informality rate at moment t and the rate that results from combining the
population at moment t with the parameters estimated at moment t that link
observable individual characteristics to the informality decision. The
article concludes that the deep change of the employment structure in
Argentina during the 1980s and the 1990s has had a significant but minor
effect on the labour informality rate.
Journal: Applied Economics
Pages: 2257-2266
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210127231
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210127231
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2257-2266
Template-Type: ReDIF-Article 1.0
Author-Name: J. Ruiz-Castillo
Author-X-Name-First: J.
Author-X-Name-Last: Ruiz-Castillo
Author-Name: E. Ley
Author-X-Name-First: E.
Author-X-Name-Last: Ley
Author-Name: M. Izquierdo
Author-X-Name-First: M.
Author-X-Name-Last: Izquierdo
Title: The Laspeyres bias in the Spanish consumer price index
Abstract:
The CPI compares the cost of acquiring a reference quantity vector at
current and base prices. Such reference vector is the vector of mean
quantities actually bought by a reference population, whose consumption
patterns are investigated during a period τ prior to the index base
period 0. This paper shows that unless the price change between these two
dates is taken into account, the CPI ceases to be a proper statistical
price index of the Laspeyres type. Among several negative consequences,
the most important is that this omission produces a bias in the
measurement of inflation: the 'Laspeyres bias'. Using Spanish data, the
size of the Laspeyres bias is estimated at -0.061% per year, during
1992-1998. The Laspeyres bias in shorter time periods reached -0.122% per
year in 1992, and -0.108 in 1997.
Journal: Applied Economics
Pages: 2267-2276
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210138428
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138428
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2267-2276
Template-Type: ReDIF-Article 1.0
Author-Name: Param Silvapulle
Author-X-Name-First: Param
Author-X-Name-Last: Silvapulle
Author-Name: Ramya Hewarathna
Author-X-Name-First: Ramya
Author-X-Name-Last: Hewarathna
Title: Robust estimation and inflation forecasting
Abstract:
This paper considers various models emerging from the Fisher effect
and/or the term structure of interest rates for inflation forecasting.
This paper, it is believed, makes a contribution to the literature on
estimation of the models by using a procedure that is robust for
non-normal errors, improving the efficiency of the estimates considerably.
The Consumer Price Index series, 90 days and 180 days Australian
bank-accepted bill rates, covering the sample period 1968Q1 to 1998Q4 were
used in this study. Contrary to earlier findings, strong evidence was
documented supporting the Fisher effect in the presence of a structural
break with the break-point being at 1980Q1. The overall results suggest
that the error correction model of the Fisher effect, the term structure
of interest rates and short-run dynamics produce superior forecasts, in
particular when the models were estimated using the robust method. These
findings have important implications for economic policy analysis.
Journal: Applied Economics
Pages: 2277-2282
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210138446
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138446
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2277-2282
Template-Type: ReDIF-Article 1.0
Author-Name: W. N. W. Azman-Saini
Author-X-Name-First: W. N. W.
Author-X-Name-Last: Azman-Saini
Author-Name: M. Azali
Author-X-Name-First: M.
Author-X-Name-Last: Azali
Author-Name: M. S. Habibullah
Author-X-Name-First: M. S.
Author-X-Name-Last: Habibullah
Author-Name: K. G. Matthews
Author-X-Name-First: K. G.
Author-X-Name-Last: Matthews
Title: Financial integration and the ASEAN-5 equity markets
Abstract:
The existence of long-run relationships among the ASEAN-5 equity markets
is empirically investigated. This study utilized weekly data spanning
January 1988 to August 1999. The results of Granger noncausality test due
to Toda and Yamamoto (Journal of Econometrics,66, 225-50, 1995) reveal
that the Singapore equity market was not affected by other markets except
by the Philippines in the long run. This result shows that there exist
opportunities for beneficial international portfolio diversification
within the context of the Asean-5 equity markets.
Journal: Applied Economics
Pages: 2283-2288
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210139364
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139364
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2283-2288
Template-Type: ReDIF-Article 1.0
Author-Name: Canan Yildirim
Author-X-Name-First: Canan
Author-X-Name-Last: Yildirim
Title: Evolution of banking efficiency within an unstable macroeconomic environment: the case of Turkish commercial banks
Abstract:
This paper analyses the efficiency performance of the Turkish banking
sector between 1988 and 1999, a period characterized by increasing
macroeconomic instability. The technical and scale efficiencies of Turkish
commercial banks are measured with the use of nonparametric Data
Envelopment Analysis. The empirical results suggest that over the sample
period both pure technical and scale efficiency measures show a great
variation and the sector did not achieve sustained efficiency gains. It is
also reported that the sector suffers mainly from scale inefficiency and
scale inefficiency, in turn, is due to decreasing returns to scale. There
are also reported differences in the efficiency performance of commercial
banks with different ownership status. In addition, the relationships
between profitability, asset quality, size and the two definitions of
efficiency are considered. Efficient banks are more profitable, and pure
technical efficiency and scale inefficiency are positively related to
size. The trend in the performance levels over the period suggests that
macroeconomic conditions had a profound influence on the efficiency
measures.
Journal: Applied Economics
Pages: 2289-2301
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210140146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210140146
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2289-2301
Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Chuan Chen
Author-X-Name-First: Hui-Chuan
Author-X-Name-Last: Chen
Title: Taiwan's exports and trade imbalance against US and Japan: an empirical investigation based on error correction model
Abstract:
This study employs recent advances in time-series analysis, cointegration
and error correction model, to examine the long-run and short-run
determinants of the exports and trade imbalance between the USA, Japan,
and Taiwan. The unit root tests reveal nonstationary in most of the
variables. The cointegration tests affirm positive the long-run
associations are between the exchange rate changes and the exports as well
as the trade imbalance. Once these long-run effects are accounted for, it
is found that there are evidences of short-run relationship between these
variables.
Journal: Applied Economics
Pages: 2303-2309
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210141695
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210141695
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2303-2309
Template-Type: ReDIF-Article 1.0
Author-Name: Shao-Hsun Keng
Author-X-Name-First: Shao-Hsun
Author-X-Name-Last: Keng
Author-Name: Steven Garasky
Author-X-Name-First: Steven
Author-X-Name-Last: Garasky
Author-Name: Helen Jensen
Author-X-Name-First: Helen
Author-X-Name-Last: Jensen
Title: Welfare dependence and recidivism in an era of welfare reform
Abstract:
This study examines the dynamics of welfare programme participation
during the initial period (1993-1995) of programme reforms at the
state-level in Iowa. The programme changes for the state were remarkably
similar to the national reforms implemented in the USA in 1996. Analysis
of the Family Investment Program (FIP) participation over the programme's
first two years show that, on average, recipients stayed fewer months in
the second year compared with the first, although a relatively large share
of participants (36%) stayed on for the full two years. Fixed effect and
semiparametric duration models are used to examine welfare dependence and
recidivism, respectively. Results indicate that income from wages and
child support are significant factors in reducing welfare participation.
Child support and wage income are crucial in determining the chances of
exiting and of staying off the programme, especially during the early
months of the exit.
Journal: Applied Economics
Pages: 2311-2323
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210143080
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210143080
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2311-2323
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Strazicich
Author-X-Name-First: Mark
Author-X-Name-Last: Strazicich
Title: International evidence of tax smoothing in a panel of industrial countries
Abstract:
A panel of industrial countries is examined for evidence of 'tax
smoothing'. Tax smoothing results when governments minimize tax
distortions over time. The model provides a positive theory of government
debt and is due primarily to Barro. Unit root tests are performed in panel
data to test the null hypothesis of nonstationary tax rates. Panel
regressions are then undertaken to test the null hypothesis that tax rate
changes are unpredictable and test for evidence of an alternative
hypothesis. Political and economic variables are examined for their
ability to predict tax rate changes. Overall, the results cannot reject
the null hypotheses and support tax smoothing by national governments.
Journal: Applied Economics
Pages: 2325-2331
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210143107
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210143107
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2325-2331
Template-Type: ReDIF-Article 1.0
Author-Name: George Davis
Author-X-Name-First: George
Author-X-Name-Last: Davis
Author-Name: Bryce Kanago
Author-X-Name-First: Bryce
Author-X-Name-Last: Kanago
Title: The contemporaneous correlation between price shocks and output shocks
Abstract:
Until the 1990s, prices were believed to be procyclical. Several
researchers have since presented evidence of counter-cyclical prices. This
evidence proved robust, but its interpretation has varied. Some have
argued that the contemporaneous correlation between output and prices
reflects both the source of the current shock and the adjustment process
from short-run to long-run equilibrium; the adjustment to the long run
imparts a bias towards a negative price-output correlation. The issue of
dynamics is addressed by estimating price shocks and output shocks. The
sign of the correlation between these shocks does not reveal anything
about the relative importance or frequency of demand versus supply shocks;
however, some understanding is gained from the time-series of the product
of the shocks. In periods when the product is negative, supply shocks must
have been either relatively large or relatively important. In periods when
the product is positive, demand shocks must have been either relatively
large or relatively important. The data suggest that the economies of the
USA, Canada and the UK were buffeted by both demand and supply shocks in
about equal portions.
Journal: Applied Economics
Pages: 2333-2339
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210147130
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210147130
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2333-2339
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Hollingsworth
Author-X-Name-First: Bruce
Author-X-Name-Last: Hollingsworth
Author-Name: Anthony Harris
Author-X-Name-First: Anthony
Author-X-Name-Last: Harris
Author-Name: Elena Gospodarevskaya
Author-X-Name-First: Elena
Author-X-Name-Last: Gospodarevskaya
Title: The efficiency of immunization of infants by local government
Abstract:
The paper makes use of data envelopment analysis (DEA) to measure the
cost and production efficiency of local government programmemes for
childhood immunization in urban and rural settings in Australia. Model
specification is tested for validity, methods are used for ranking
efficient units and advanced statistical methods are used to establish
confidence intervals around the efficiency estimates. Given the small data
set, the cost and production models are valid, and it is concluded that
while neither urban nor rural programmes are particularly efficient, there
is more room for improvement in rural programmes. Ways of changing methods
of delivery are suggested which may increase efficiency.
Journal: Applied Economics
Pages: 2341-2345
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210147158
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210147158
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2341-2345
Template-Type: ReDIF-Article 1.0
Author-Name: David Giles
Author-X-Name-First: David
Author-X-Name-Last: Giles
Author-Name: Lindsay Tedds
Author-X-Name-First: Lindsay
Author-X-Name-Last: Tedds
Author-Name: Gugsa Werkneh
Author-X-Name-First: Gugsa
Author-X-Name-Last: Werkneh
Title: The Canadian underground and measured economies: Granger causality results
Abstract:
Using new time-series data for the size of the Canadian underground
economy, the relationship between unreported and measured GDP in that
country is examined. Granger causality tests are conducted, with a proper
allowance for the non-stationarity of the data. It is found that there is
clear evidence of such causality from measured GDP to 'hidden' output, but
only very mild evidence of Granger causality in the reverse direction.
This result supports similar evidence for New Zealand reported by the
first author, and has several interesting policy implications.
Journal: Applied Economics
Pages: 2347-2352
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210148021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148021
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2347-2352
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brooks
Author-X-Name-First: Robert
Author-X-Name-Last: Brooks
Author-Name: Robert Faff
Author-X-Name-First: Robert
Author-X-Name-Last: Faff
Author-Name: David Sokulsky
Author-X-Name-First: David
Author-X-Name-Last: Sokulsky
Title: An ordered response model of test cricket performance
Abstract:
The paper analyses the prediction of test cricket outcomes using an
ordered response model. The results, based on data over the period 1994 to
1999, suggest that the ordered categorized production outcome of test
cricket (win, draw, loss) can be explained by simple measures of the
batting and bowling labour inputs. For example, across all countries the
model correctly predicts 71% of test cricket outcomes. Further, it is
found that losses are correctly predicted most often at 81% of the sample
but that the model faces its biggest challenge predicting test match
draws-only getting 57% of these cases correct. Also analysed are the
circumstances in which the model produces incorrect predictions and it is
found that the most common events are unsuccessful last innings runs
chases; successful last innings runs chases and rain-affected matches. An
analysis of failed model predictions in terms of country factors suggests
that (relative to all other countries) Pakistan has a higher tendency to
be involved in such matches, whereas Sri Lanka has a higher tendency to be
involved in matches that are 'predictable'. A 'style' analysis using this
model suggests that five test cricket styles are evident. Style I is that
of 'Bowling and Batting Performance' and describes Pakistan, the West
Indies and (perhaps to a lesser extent) Zimbabwe. Style II is that of
'Batting Performance' and describes England, New Zealand and (perhaps to a
lesser extent) India. Style III is 'Bowling Performance' and describes
Australia. Style IV is 'Bowling Performance/Batting Strike Rate' and
describes South Africa. Finally, Style V is 'Bowling Performance and
Strike Rate' and describes Sri Lanka. Finally, the model is used to
analyse which country can claim to be the world champions of test cricket
over the sample period. In an initial analysis based on average
performance over this period, South Africa has the best claim. However, in
a 'heavyweight title' contest between South Africa and Australia,
Australia has the superior claim.
Journal: Applied Economics
Pages: 2353-2365
Issue: 18
Volume: 34
Year: 2002
X-DOI: 10.1080/00036840210148085
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148085
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Handle: RePEc:taf:applec:v:34:y:2002:i:18:p:2353-2365
Template-Type: ReDIF-Article 1.0
Author-Name: H. N. E. BystrOm
Author-X-Name-First: H. N. E.
Author-X-Name-Last: BystrOm
Title: The hedging performance of electricity futures on the Nordic power exchange
Abstract:
The Nordic Power Exchange (Nord Pool), the first multinational exchange
for electricity trading, has existed since January 1996. Spot and futures
contracts are traded on this exchange and its typical characteristics are
very high volatilities as well as non-normally distributed returns. This
article looks at electricity futures and how they can be used for
short-term hedging of positions taken in the spot market. It studies the
minimum variance hedge ratio and how it can be estimated in different
ways. The traditional naive hedge and the OLS hedge are compared
out-of-sample to more elaborate moving average and GARCH hedges, and the
empirical results indicate some gains from hedging with futures despite
the lack of straight-forward arbitrage possibilities in the electricity
market. Furthermore, we find a slightly better performance of the simple
OLS hedge compared to the conditional hedges.
Journal: Applied Economics
Pages: 1-11
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210138365
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138365
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:1-11
Template-Type: ReDIF-Article 1.0
Author-Name: Charles DeLorme
Author-X-Name-First: Charles
Author-X-Name-Last: DeLorme
Author-Name: Peter Klein
Author-X-Name-First: Peter
Author-X-Name-Last: Klein
Author-Name: David Kamerschen
Author-X-Name-First: David
Author-X-Name-Last: Kamerschen
Author-Name: Lisa Ford Voeks
Author-X-Name-First: Lisa Ford
Author-X-Name-Last: Voeks
Title: Structure, conduct and performance: a simultaneous equations approach
Abstract:
A simultaneous-equations framework is used to study the relationship
between structure, conduct, and performance in US manufacturing in the
1980s and 1990s. The paper expands on earlier
structure-conduct-performance studies by using a lag structure to signify
that structure, conduct and performance do not affect one another
contemporaneously. Findings support some aspects of the traditional
structure-conduct-performance model, but challenge others. First, the data
suggest that industry structure does not depend on current industry
performance. Second, little evidence is found that industry conduct,
proxied by advertising, is affected by industry structure. Third, results
show that industry performance does not depend on industry conduct, though
it is sensitive to industry structure. Thus, the main findings are that
(1) concentration does not depend on firm profitability, though
profitability depends on concentration, (2) advertising follows a process
that is independent of the factors considered here, and (3) advertising
seems to have no effect on profitability.
Journal: Applied Economics
Pages: 13-20
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210147149
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210147149
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:13-20
Template-Type: ReDIF-Article 1.0
Author-Name: M. K. Leung
Author-X-Name-First: M. K.
Author-X-Name-Last: Leung
Author-Name: D. Rigby
Author-X-Name-First: D.
Author-X-Name-Last: Rigby
Author-Name: T. Young
Author-X-Name-First: T.
Author-X-Name-Last: Young
Title: Entry of foreign banks in the People's Republic of China: a survival analysis
Abstract:
This study uses survival analysis to examine the factors determining the
decision of a foreign bank to establish a branch in the PRC. Bank size and
international diversification are found to have a significant positive
impact on the probability of entry. Banks from Asia have particular
cultural and locational advantages in this context and are found to be
more likely to enter this market. Market conditions in the host economy,
exemplified by an improved political environment and increasing levels of
international trade, are also found to be significant determinants of the
timing of entry. Access to China's banking sector will increase upon entry
to the WTO and again cultural links and location are likely to play a key
role for foreign entrants, particularly for those operating in local
currency markets.
Journal: Applied Economics
Pages: 21-31
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210148030
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148030
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:21-31
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Lucke
Author-X-Name-First: Bernd
Author-X-Name-Last: Lucke
Title: Are technical trading rules profitable? Evidence for head-and-shoulder rules
Abstract:
The profitability of chartist trading rules on foreign exchange markets
is still under debate. Since simple technical trading rules may not
adequately capture the complex phenomenon of chartist trading, this study
focuses on the prominent head-and-shoulder pattern as a representative
trading rule which incorporates various 'technical' ideas such as smoothed
trends, trend reversal, resistance levels, and volatility clustering. For
various combinations of the building blocks of head-and-shoulder
definitions the result is generally negative: Returns to head-and-shoulder
trading rules are not significantly positive - and if there is any
evidence for non-zero returns at all, then it is evidence for negative
returns.
Journal: Applied Economics
Pages: 33-40
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210150884
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210150884
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:33-40
Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsson
Author-X-Name-First: Fredrik
Author-X-Name-Last: Carlsson
Title: The demand for intercity public transport: the case of business passengers
Abstract:
Using a stated preference survey on business passengers travelling by
rail or air between the two largest cities in Sweden, business passengers'
preferences for different modes of transport and their corresponding
attributes are investigated. Compared to what previous studies have found,
the values put on attributes are very high, this including the
environmental impact of the modes. This is largely explained by the fact
that business passengers do not bear the cost of the trip, but still have
the possibility of deciding the mode of transport. The usefulness of a
more flexible specification of the demand for transport is explored using
a random parameter logit model. It is found that there is a gain in using
a random parameter model compared to a standard logit model, in the sense
that it provides richer information about passengers' preferences.
However, no consistent pattern is found in the differences in willingness
to pay for attributes between the econometric specifications.
Journal: Applied Economics
Pages: 41-50
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210158921
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210158921
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:41-50
Template-Type: ReDIF-Article 1.0
Author-Name: Rakesh Bali
Author-X-Name-First: Rakesh
Author-X-Name-Last: Bali
Title: An empirical analysis of stock returns around dividend changes
Abstract:
This paper documents significant drift in stock returns following
announcements of changes in cash dividends. The magnitude is (i) smaller
for increases than for decreases, (ii) inversely related to firm size and
positively to dividend yield change, and (iii) concentrated in the first
quarter. Beta changes do not explain the drift and it is robust in various
subperiods. Next it is shown that dividend increases are positively
autocorrelated especially every fourth quarter. The prices keep reacting
to future announcements as if the market ignores these autocorrelations.
Dividend decreases exhibit weak autocorrelation and the returns are
negative for the following three announcements.
Journal: Applied Economics
Pages: 51-61
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684020158930
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684020158930
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:51-61
Template-Type: ReDIF-Article 1.0
Author-Name: Ikerne Del Valle
Author-X-Name-First: Ikerne Del
Author-X-Name-Last: Valle
Author-Name: Inmaculada Astorkiza
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Astorkiza
Author-Name: Kepa Astorkiza
Author-X-Name-First: Kepa
Author-X-Name-Last: Astorkiza
Title: Fishing effort validation and substitution possibilities among components: the case study of the VIII division European anchovy fishery
Abstract:
Command and control regulation programmes, particularly input
constraints, typically fail to achieve stated objectives, because
fishermen may substitute unregulated for regulated inputs. It is, thus,
essential to have an understanding of the internal structure of production
technology. A primal formulation is used to estimate a translog production
function at the vessels level that includes fishing effort and fisherman's
skill. The flexibility of the selected functional permits the analysis of
the substitution possibilities among inputs by estimating the elasticity
of substitution with no prior constraints. Particular attention is paid to
the empirical validation of fishing effort as an aggregate input, which
implies either, the acceptance of the joint hypothesis that inputs making
up effort are weakly separable from the inputs out of the subgroup or
considering that effort is an intermediate input produced by a
non-separable two stage technology. Cross-sectional data from the Spanish
purse seine fleet operating in the VIII Division European anchovy fishery
provide evidence of limited input substitution possibilities among the
inputs making up the empirically validated fishing effort translog
micro-production function.
Journal: Applied Economics
Pages: 63-77
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210158949
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210158949
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:63-77
Template-Type: ReDIF-Article 1.0
Author-Name: Paola Caselli
Author-X-Name-First: Paola
Author-X-Name-Last: Caselli
Author-Name: Patrizio Pagano
Author-X-Name-First: Patrizio
Author-X-Name-Last: Pagano
Author-Name: Fabiano Schivardi
Author-X-Name-First: Fabiano
Author-X-Name-Last: Schivardi
Title: Uncertainty and the slowdown of capital accumulation in Europe
Abstract:
The slowdown in the process of capital formation in continental Europe in
the 1990s is analysed. Sector-level data from the OECD's International
Sectoral Data Base (ISDB) are used. Econometric estimates of an investment
function indicate structural instability in the early 1990s and,
specifically, a break in the coefficient linking the growth of capital
stock to demand. This result neither seems to be related to
non-linearities in the relationship between capital formation and expected
demand, nor to the sectoral composition of European economies. Evidence is
found that the drop in the accelerator is at least partly attributable to
greater demand uncertainty in the 1990s as compared with the earlier
period.
Journal: Applied Economics
Pages: 79-89
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210158958
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210158958
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:79-89
Template-Type: ReDIF-Article 1.0
Author-Name: Haiwei Chen
Author-X-Name-First: Haiwei
Author-X-Name-Last: Chen
Author-Name: Honghui Chen
Author-X-Name-First: Honghui
Author-X-Name-Last: Chen
Author-Name: Nicholas Valerio
Author-X-Name-First: Nicholas
Author-X-Name-Last: Valerio
Title: The effects of trading halts on price discovery for NYSE stocks
Abstract:
This article uses intraday data for the year 1992 to investigate the
effect of trading halts on price discovery for stocks traded on the New
York Stock Exchange. The results show that the degree of benefits from
trading halts depends on the types of halts and significance of the news
items. It is found that trading halts reduce price dispersion when trading
is halted due to imbalance in order flows. Such a positive effect is
robust to the significance of news items. Trading halts can help price
discovery when trading is halted due to the fact that some significant
news items already hit the market and investors need more time to digest
the impacts on price. In contrast, when officials call for the halt due to
the pending news release with little significance, trading halts actually
inject more noise into the prices and undermine the price discovery
process. Overall, the results are consistent with the argument by
exchanges that trading halts help dissipate information and facilitate the
price discovery process.
Journal: Applied Economics
Pages: 91-97
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210161846
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161846
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:91-97
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Title: Savings and investment in Australia
Abstract:
It has become popular to advocate tax reduction on the basis of promoting
savings, investment and ultimately economic growth. The linkage between
the variables is argued by various neoclassical growth models and is
further suggested by recent studies which highlight the close association
between domestic saving and investment rates. The close association may
allow for polices which alter domestic saving levels in order to alter
domestic investment levels. This interpretation, however, presumes an
endogenous investment response. Equally likely, theoretically, is that the
close association is maintained by movements in national savings. The
present paper explicitly examines the endogeneity of the Australian saving
and investment rates. The results highlight the exogeneity of investment.
The results further suggest an endogenous response on the part of
Australia's saving rate. The results may limit the potential benefits of
these tax changes.
Journal: Applied Economics
Pages: 99-106
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015928
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015928
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:99-106
Template-Type: ReDIF-Article 1.0
Author-Name: A. Calza
Author-X-Name-First: A.
Author-X-Name-Last: Calza
Author-Name: C. Gartner
Author-X-Name-First: C.
Author-X-Name-Last: Gartner
Author-Name: J. Sousa
Author-X-Name-First: J.
Author-X-Name-Last: Sousa
Title: Modelling the demand for loans to the private sector in the euro area
Abstract:
This article studies the determinants of loans to the private sector in
the euro area. Using the Johansen methodology, the study identifies one
cointegrating relationship linking real loans, GDP and interest rates.
This relationship implies that in the long-run real loans are positively
related to real GDP and negatively to real short-term and long-term
interest rates. Both the signs and the magnitude of the coefficients
suggest that the cointegrating vector describes a long-run demand
equation. The short-run dynamics of the demand for euro area real loans is
subsequently modelled by means of a Vector Error Correction Model (VECM).
A number of specification tests performed on the VECM produce satisfactory
results, with tests of stability of the model parameters showing no signs
of structural breaks during the sample period (1980: 1-1999: 2). All of
this suggests that developments in real loans to the private sector in the
euro area can be reasonably explained by the model.
Journal: Applied Economics
Pages: 107-117
Issue: 1
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210161837
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161837
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Handle: RePEc:taf:applec:v:35:y:2003:i:1:p:107-117
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Title: Strong dependence in the real interest rates
Abstract:
The stochastic behaviour of the real interest rates in ten European
countries, Canada and the US is examined in this article by means of
fractionally integrated techniques. Using a procedure, specifically
designed for testing I (d) statistical models, the results show that the
real interest rates are more persistent in some countries like France,
Belgium or the USA than in others like the UK or Germany.
Journal: Applied Economics
Pages: 119-124
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210161855
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161855
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:119-124
Template-Type: ReDIF-Article 1.0
Author-Name: Priniti Panday
Author-X-Name-First: Priniti
Author-X-Name-Last: Panday
Title: Incidence theory and the shifting of protection across sectors: the South Asian experience
Abstract:
Using the theoretical framework of a simple general equilibrium model,
this paper examines whether strategies aimed at protecting or promoting
manufacturing industries indirectly taxed the agricultural and service
sectors. A panel data set consisting of five South Asian countries over a
26 year time period is employed in the analysis. Three different
estimation procedures are used to account for factors that are country
specific and those that are common to all countries. The results indicate
that the agricultural sector indirectly felt the brunt of the net
protection provided to manufactures due to the 'shifting of protection'
across sectors. The service sector, on the other hand, indirectly
benefited from the general equilibrium spillover effects.
Journal: Applied Economics
Pages: 125-132
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015892
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015892
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:125-132
Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Strazzera
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Strazzera
Author-Name: Riccardo Scarpa
Author-X-Name-First: Riccardo
Author-X-Name-Last: Scarpa
Author-Name: Pinuccia Calia
Author-X-Name-First: Pinuccia
Author-X-Name-Last: Calia
Author-Name: Guy Garrod
Author-X-Name-First: Guy
Author-X-Name-Last: Garrod
Author-Name: Kenneth Willis
Author-X-Name-First: Kenneth
Author-X-Name-Last: Willis
Title: Modelling zero values and protest responses in contingent valuation surveys
Abstract:
In contingent valuation surveys the category of zero bidders refers to
individuals that are not willing to pay anything for the programme under
analysis. Specific questions can help to identify true zero values, coming
from people that are indifferent to the programme, separately from protest
responses: the latter are generally excluded from the analysis. This paper
introduces a mixture-sample selection model that takes into account both
zero values and protest responses in the estimates. The model is applied
to the valuation of a traffic calming scheme aimed at reducing risks for
residents in three villages in the north-east of England.
Journal: Applied Economics
Pages: 133-138
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015900
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015900
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:133-138
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Title: Monetary dynamics: a market approach
Abstract:
The behaviour of the short-run responses implied by the identification of
a long-run money demand relationship is examined. These responses have
recently been interpreted as representing the policy stance of the
monetary authority. However, as movements in the monetary aggregate
reflect both demand and supply adjustments, estimating the short-run
dynamics solely within the money demand relationship may produce biased
results. In order to address this issue, the paper explicitly acknowledges
the importance of the supply of money function by including the function
alongside the demand for money function. While the interaction of the two
equations continues to produce the long-run quantity theory result, the
additional detail provides more accurate estimates of the individual
short-run adjustments within the two equations.
Journal: Applied Economics
Pages: 139-152
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015955
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015955
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:139-152
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Giannakas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Giannakas
Author-Name: Kien Tran
Author-X-Name-First: Kien
Author-X-Name-Last: Tran
Author-Name: Vangelis Tzouvelekas
Author-X-Name-First: Vangelis
Author-X-Name-Last: Tzouvelekas
Title: Predicting technical effciency in stochastic production frontier models in the presence of misspecification: a Monte-Carlo analysis
Abstract:
This paper provides a theoretical explanation for the sensitivity of
technical efficiency measures to the choice of functional specification in
stochastic production frontier models. It is shown that inappropriate
functional specifications translate into a misspecification in the
conditional mean of the stochastic frontier regression model. This
misspecification, in turn, results in estimates of technical efficiency,
confidence intervals and production elasticities being biased, even
asymptotically. Monte-Carlo simulations reveal that the severity of the
bias depends on the functional specification and the percentage
contribution of the variance of technical inefficiency to the total
variance of the composed errors.
Journal: Applied Economics
Pages: 153-161
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015964
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015964
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:153-161
Template-Type: ReDIF-Article 1.0
Author-Name: David Harvey
Author-X-Name-First: David
Author-X-Name-Last: Harvey
Author-Name: Stephen Leybourne
Author-X-Name-First: Stephen
Author-X-Name-Last: Leybourne
Author-Name: Paul Newbold
Author-X-Name-First: Paul
Author-X-Name-Last: Newbold
Title: How great are the great ratios?
Abstract:
The balanced growth and neoclassical stochastic growth literatures imply
stationarity of certain macroeconomic 'great ratios'. Four such ratios are
considered: consumption:output, investment:output, the real interest rate
and real money supply growth, and evidence for ratio stationarity in the
G7 countries is examined. Univariate unit root and stationarity tests are
performed, and analysis of the cointegrating relations between output,
consumption and investment is conducted. Almost no evidence of
stationarity is found for the consumption:output and investment:output
great ratios. Empirical evidence supports real money supply growth
stationarity, but is more mixed for the real interest rate.
Journal: Applied Economics
Pages: 163-177
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015865
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015865
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:163-177
Template-Type: ReDIF-Article 1.0
Author-Name: P. A. Scuffham
Author-X-Name-First: P. A.
Author-X-Name-Last: Scuffham
Title: Economic factors and traffic crashes in New Zealand
Abstract:
The aim of this study was to examine the changes in the trend and
seasonal patterns of fatal crashes in New Zealand in relation to changes
in economic conditions between 1970 and 1994. The Harvey (Harvey and
Durbin, Journal of the Royal Statistical Society, 149 (3), 187-227, 1986)
Structural Time Series Model (STSM), an 'unobserved components' class of
model, was used to estimate the quarterly number of fatal traffic crashes.
Independent variables included distance travelled, the unemployment rate
(UER), real gross domestic product per capita (RGDP), the proportion of
motorcycles, the proportion of young males in the population, alcohol
consumption per capita, the open road speed limit, and dummy variables for
the 1973 and 1979 oil crises and seatbelt wearing laws. Distance
travelled, RGDP, UER, and alcohol consumption per capita were significant
factors in explaining the short-run dynamics of fatal crashes with the
effect of RGDP greater than UER. Increases in either RGDP or UER were
related with decreases in fatal crashes. The STSM is a feasible approach
to modelling the effect of economic factors on traffic crashes whilst
accounting for unobserved components.
Journal: Applied Economics
Pages: 179-188
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000017566
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000017566
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:179-188
Template-Type: ReDIF-Article 1.0
Author-Name: Maozu Lu
Author-X-Name-First: Maozu
Author-X-Name-Last: Lu
Author-Name: Zhichao Zhang
Author-X-Name-First: Zhichao
Author-X-Name-Last: Zhang
Title: Exchange rate reform and its inflationary consequences: an empirical analysis for China
Abstract:
In examining China's exchange rate policy in the reforming years, the
study finds empirical evidence of its long-run inflationary consequences,
but the effects appear not to be sizable. In the short run, while changes
in the devaluation rate are positively correlated with the increase in the
growth rate of inflation, the inflation inertia is also modest. The
moderate inflationary cost of devaluations provides some explanation of
the smooth transition of exchange rate policy regime in China and the
authorities' ability to put more weight on external competitiveness.
Journal: Applied Economics
Pages: 189-199
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000017575
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000017575
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:189-199
Template-Type: ReDIF-Article 1.0
Author-Name: Bradley Ewing
Author-X-Name-First: Bradley
Author-X-Name-Last: Ewing
Author-Name: Shawn Forbes
Author-X-Name-First: Shawn
Author-X-Name-Last: Forbes
Author-Name: James Payne
Author-X-Name-First: James
Author-X-Name-Last: Payne
Title: The effects of macroeconomic shocks on sector-specific returns
Abstract:
The reliance on market and sector-specific indexes to evaluate managed
portfolios and the popularity of index investing has increased the
importance of understanding what leads to market movements, how long they
may last, and how different sectors respond to macroeconomic shocks. This
research is concerned with how shocks to macroeconomic variables affect
five major S&P sector-specific stock market indexes. The paper employs the
newly developed econometric technique of generalized impulse response
analysis. The results identify the various responses of the sectors to
unanticipated changes in some key macroeconomic variables. Asset prices
are commonly believed to react sensitively to economic news. Daily
experience seems to support the view that individual asset prices are
influenced by a wide variety of unanticipated events and that some events
have a more pervasive effect on asset prices than do others. (Chen et al.
1986, p. 386)
Journal: Applied Economics
Pages: 201-207
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000018222
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018222
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:201-207
Template-Type: ReDIF-Article 1.0
Author-Name: Justin Tobias
Author-X-Name-First: Justin
Author-X-Name-Last: Tobias
Title: The effects of cognitive ability and high school quality on college entry decisions: nonparametric estimation of parameters of interest
Abstract:
The decisions to attend college are analysed and nonparametric
predictions compared to those obtained from the widely used logit model.
The impacts of measured cognitive ability and proxies for high school
quality on the decisions to attend college are examined for a sample of
white and black males and females from the USA. Two different parameters
of interest which isolate the effects of ability and high school quality
on college entry decisions are described and estimated by 'integrating
out' the effect of other covariates. It is found that measured cognitive
ability is an extremely important determinant of college entry for all
race and gender groups. At the same point in the ability distribution,
blacks are more likely to select into college than whites, and females
more likely than males of the same racial group. Proxies for high school
quality such as teacher education, student teacher ratios, school
enrolment and library size are shown to have little or no effects on the
likelihood of college entry for all race and gender groups. Further,
predictions obtained from the flexible nonparametric analysis are found to
be quite similar to those obtained from the logit model, suggesting that
simpler fully parametric binary choice models perform quite well as
modelling college entry decisions.
Journal: Applied Economics
Pages: 209-215
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000018231
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018231
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:209-215
Template-Type: ReDIF-Article 1.0
Author-Name: Erdal Ozmen
Author-X-Name-First: Erdal
Author-X-Name-Last: Ozmen
Author-Name: Kağan Parmaksiz
Author-X-Name-First: Kağan
Author-X-Name-Last: Parmaksiz
Title: Exchange rate regimes and the Feldstein-Horioka puzzle: the French evidence
Abstract:
This paper investigates whether the Feldstein and Horioka (Economic
Journal, 90, 314-329, 1980) argument on domestic saving-investment
relationship is supported by the French data when an endogenous structural
break corresponding to a major policy regime change is taken into account.
The evidence suggests that the saving-investment cointegration disappears
after the estimated endogenous structural break point in 1973 coinciding
with the end of the Bretton Woods system of fixed exchange rates.
Consistent with a current account targeting policy, an investment-driven
saving process appears to be the case for the fixed exchange rate regime
period.
Journal: Applied Economics
Pages: 217-222
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684021000025397
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684021000025397
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:217-222
Template-Type: ReDIF-Article 1.0
Author-Name: Filip Abraham
Author-X-Name-First: Filip
Author-X-Name-Last: Abraham
Author-Name: Ellen Brock
Author-X-Name-First: Ellen
Author-X-Name-Last: Brock
Title: Sectoral employment effects of trade and productivity in Europe
Abstract:
The impact of trade and technology in the European case is assessed. A
framework is developed which incorporates employment effects of (i) export
expansion (ii) import competition and (iii) labour-saving productivity
improvements. In this context, evidence is found for the hypothesis that
international trade induces adjustments in technology.
Journal: Applied Economics
Pages: 223-238
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210161828
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161828
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:223-238
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Mirucki
Author-X-Name-First: Jean
Author-X-Name-Last: Mirucki
Title: Assessing editorial preferences towards Industrial Organization articles
Abstract:
In order to evaluate the relative importance of articles on Industrial
Organization published in major generalist or specialized scientific
journals, this empirical study has used the new 1991 JEL classification
system, by regrouping contributions according to the type of article:
theoretical analysis, industrial policy or industry studies. A rate of
multiple reference index has been introduced to examine the degree of
relation between these three categories and used as a proxy for editorial
preferences towards the type of treatment of the subject usually expected
by the journal. The article contents of nine generalist and five
specialized journals are analysed for the two periods 1991-1995 and
1996-2000.
Journal: Applied Economics
Pages: 239-243
Issue: 2
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210155159
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210155159
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Handle: RePEc:taf:applec:v:35:y:2003:i:2:p:239-243
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Cullinane
Author-X-Name-First: Kevin
Author-X-Name-Last: Cullinane
Author-Name: Dong-Wook Song
Author-X-Name-First: Dong-Wook
Author-X-Name-Last: Song
Title: A stochastic frontier model of the productive efficiency of Korean container terminals
Abstract:
A central objective of port privatization and/or deregulation policies is
stimulating greater efficiency by engendering a more competitive market
and commercial approach to management. Korea provides a prime example of a
nation that is implementing such policies. Also, its ports play a pivotal
role in world shipping, particularly in the ever-burgeoning container
market. The success of these policies in increasing the productive
efficiency of Korean container terminals is assessed. The UK container
terminal sector provides a useful benchmark for comparison since
privatization and deregulation have formed an integral part of UK port
reforms for nearly 20 years and the effect on efficiency, having had time
to mature, will be much easier to gauge. The stochastic frontier model is
justified as the chosen methodology for estimating productive efficiency
levels and is applied to cross-sectional data under a variety of
distributional assumptions. A panel data model is also estimated. Results
are consistent and suggest (1) The degree of private sector involvement in
sample container terminals is positively related to productive efficiency
and (2) Improved productive efficiency has followed the implementation of
privatization and deregulation policies within the Korean sector. Even
though not categorical, these conclusions are important because the market
for container throughput is internationally competitive and if policies
which promote competition between Korean container terminals lead to
greater productive efficiency, this will inevitably make the sector as a
whole more competitive internationally.
Journal: Applied Economics
Pages: 251-267
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210139355
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139355
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:251-267
Template-Type: ReDIF-Article 1.0
Author-Name: Thanos Mergoupis
Author-X-Name-First: Thanos
Author-X-Name-Last: Mergoupis
Author-Name: Max Steuer
Author-X-Name-First: Max
Author-X-Name-Last: Steuer
Title: Holiday taking and income
Abstract:
This paper is the first attempt to estimate the determinants of
holiday-taking across several countries. To accomplish this a two-stage
estimation procedure is employed which enables incongruous income
categories to be transformed into a single income variable. It is found
that in the mid-1980s there was a substantial similarity in the holiday
taking behaviour of Europeans. The large national differences in holiday
participation are explained by differences in income and demographic
factors. A remarkable regularity in the responsiveness of the probability
of holiday taking to marginal changes in income is found.
Journal: Applied Economics
Pages: 269-284
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210143071
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210143071
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:269-284
Template-Type: ReDIF-Article 1.0
Author-Name: Yaffa Machnes
Author-X-Name-First: Yaffa
Author-X-Name-Last: Machnes
Title: Changes in mortality: gender and international comparisons
Abstract:
Changes in mortality risks are measured according to a statistical
criterion. This criterion helps to identify the desired reduction in
age-specific mortality risk. During the last four decades, a survey of 15
industrialized countries showed that changes in age-specific mortality
rates pointed towards age groups whose reduction in mortality deviated
from the optimal shift. Further observations showed consistent differences
between the different gender groups and also found a country specific
shift. This research found that richer countries displayed less systematic
changes.
Journal: Applied Economics
Pages: 285-291
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210146672
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210146672
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:285-291
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Richaud
Author-X-Name-First: Christine
Author-X-Name-Last: Richaud
Author-Name: AristomEne Varoudakis
Author-X-Name-First: AristomEne
Author-X-Name-Last: Varoudakis
Author-Name: Marie-Ange VEganzonEs
Author-X-Name-First: Marie-Ange
Author-X-Name-Last: VEganzonEs
Title: Real exchange rate and openness in emerging economies: Argentina in the long run
Abstract:
Argentina's economic policies since the beginning of the century, give an
interesting background to the study of Real Exchange Rate (RER) management
in emerging countries. In this article, four types of RER overvaluation
are identified. In the 1920s, Argentina provides a short example of
overvaluation in a context of a fixed exchange rate policy. Moreover, the
estimations show that import substitution regimes can lead to a
misalignment of RER. Argentina illustrates also the difficult management
of RER in a volatile environment. The results allow, in addition, to
better understand the failure of the trade liberalization attempts of the
country and remind that successfully integrating the world economy asks
for an appropriate RER policy.
Journal: Applied Economics
Pages: 293-303
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036846.2003.10106748
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2003.10106748
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:293-303
Template-Type: ReDIF-Article 1.0
Author-Name: Nasiruddin Ahmed
Author-X-Name-First: Nasiruddin
Author-X-Name-Last: Ahmed
Title: Trade liberalization and endogenous growth of manufacturing industries in Bangladesh: an empirical investigation
Abstract:
Using the framework of an endogenous growth model, this paper empirically
analyses the relation between trade policies and industrial growth in
Bangladesh during the period 1974-1996. The cointegration and error
correction modelling approaches have been applied. The empirical results
suggest that there exists a unique cointegral relation between the index
of industrial production and its major determinants of investment-GDP
ratio, average share of exports in GDP and secondary school enrolment
ratio. The short-term dynamic behaviour of Bangladesh's industrial
production has been investigated by estimating an error correction model
in which the error correction term has been found to be correctly signed
and statistically significant. The findings of the study show that
investment share in GDP, export share in GDP (lagged four quarters),
secondary school enrolment ratio, and average collection of customs duty
(lagged six quarters) have all emerged as significant determinants of
industrial production in Bangladesh.
Journal: Applied Economics
Pages: 305-314
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/713932836
File-URL: http://www.tandfonline.com/doi/abs/10.1080/713932836
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:305-314
Template-Type: ReDIF-Article 1.0
Author-Name: Ramon Guajardo
Author-X-Name-First: Ramon
Author-X-Name-Last: Guajardo
Author-Name: Homero Elizondo
Author-X-Name-First: Homero
Author-X-Name-Last: Elizondo
Title: North American tomato market: a spatial equilibrium perspective
Abstract:
This paper studies the North American tomato market in a world market
perspective. For this purpose a spatial equilibrium model with endogenous
prices is constructed and solved by quadratic mathematical programming
method. Six scenarios involving the impacts from transportation costs,
tariffs, and North American Free Trade Agreement (NAFTA) were modelled.
The solutions illustrate their impacts on production, consumption, trade
flows, prices, and net social welfare. Due to NAFTA, Mexico became the
main tomato exporter to the USA.
Journal: Applied Economics
Pages: 315-322
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840110101438
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110101438
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:315-322
Template-Type: ReDIF-Article 1.0
Author-Name: Justo Manrique
Author-X-Name-First: Justo
Author-X-Name-Last: Manrique
Author-Name: Kalu Ojah
Author-X-Name-First: Kalu
Author-X-Name-Last: Ojah
Title: The demand for housing in Spain: an endogenous switching regression analysis
Abstract:
Housing demand in Spain has been studied by using data disaggregated into
primary and secondary housing demands. It is found that demand for both
types of housing area, indeed, related and that they are both considered
necessities; thus, suggesting that their consumption ought to be modelled
as a joint decision. Moreover, it is found that traditional determinants
of housing demand affect primary and secondary home demands differently.
These differences are attributable to the following economic rationales:
need for asset holdings diversifications, relative high cost of home
ownership versus rental in choice locations, and differences in land
demand intensity across regions. In sum, the findings suggest that policy
makers in Spain, contrary to popular beliefs, must consider secondary
homes an integral part of households' accommodation need.
Journal: Applied Economics
Pages: 323-336
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840110111149
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111149
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:323-336
Template-Type: ReDIF-Article 1.0
Author-Name: Atsuo Utaka
Author-X-Name-First: Atsuo
Author-X-Name-Last: Utaka
Title: Confidence and the real economy - the Japanese case
Abstract:
This paper empirically analyses whether consumer confidence has an effect
on the real economy in Japan. This paper uses vector autoregressions
including variables which represent consumer confidence. It is shown that
in the cases of quarterly and monthly data, consumer confidence has a
significant effect on GDP fluctuations, whereas in the case of semiannual
data, it has no effect. In other words, consumer confidence has an effect
on only short-term economic fluctuations.
Journal: Applied Economics
Pages: 337-342
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210135205
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210135205
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:337-342
Template-Type: ReDIF-Article 1.0
Author-Name: J. Isaac Brannon
Author-X-Name-First: J. Isaac
Author-X-Name-Last: Brannon
Title: The effects of resale price maintenance laws on petrol prices and station attrition: empirical evidence from Wisconsin
Abstract:
The state of Wisconsin's Unfair Sales Act prevents the sale of any item
below cost in order to attract business, and specifically requires petrol
(gasoline) stations to mark up their prices by at least 6% over the
wholesale price. While the ostensible reason for this law is to protect
small, independent retailers and thus enhance competition, the evidence
suggests that the primary result of this law has been to inflate the price
of petrol for Wisconsin consumers and facilitate tacit collusion in retail
petrol markets. Petrol prices in two major markets in the state are
examined, as well as in one market outside of the state where no minimum
markup is required. The data show that when the penalties for violating
the Unfair Sales Act were strengthened, the average markup of retail
petrol over the wholesale price increased significantly in Wisconsin
without a commensurate change in the average markup in the market outside
of Wisconsin. It is also found that price dispersion is significantly
lower over a two-year period in the protected Wisconsin market than in the
unprotected markets.
Journal: Applied Economics
Pages: 343-349
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210150857
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210150857
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:343-349
Template-Type: ReDIF-Article 1.0
Author-Name: Imed Drine
Author-X-Name-First: Imed
Author-X-Name-Last: Drine
Author-Name: Christophe Rault
Author-X-Name-First: Christophe
Author-X-Name-Last: Rault
Title: Do panel data permit the rescue of the Balassa-Samuelson hypothesis for Latin American countries?
Abstract:
This paper tests empirically the Balassa-Samuelson (BS) hypothesis (i.e.
rapid economic growth is accompanied by real exchange rate appreciation
because of differential productivity growth between tradable and
non-tradable sectors) using annual data for twenty Latin American
countries. The paper applies new panel data unit-root tests proposed by Im
et al. (Discussion paper, University of Cambridge, June 1997) and new
panel data cointegration techniques suggested by Pedroni (Oxford Bulletin
of Economics and Statistics, 1999) and the results are compared with those
obtained with conventional time series unit-roots and cointegration tests.
The main finding is that whereas a standard time series approach rejects
the Balassa-Samuelson hypothesis for 11 countries out of 20, new panel
cointegration techniques permit the rescue of this hypothesis for Latin
American countries, as well as for Central American and South American
groups of countries considered separately.
Journal: Applied Economics
Pages: 351-359
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015838
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:351-359
Template-Type: ReDIF-Article 1.0
Author-Name: L. Steinmann
Author-X-Name-First: L.
Author-X-Name-Last: Steinmann
Author-Name: P. Zweifel
Author-X-Name-First: P.
Author-X-Name-Last: Zweifel
Title: On the (in)efficiency of Swiss hospitals
Abstract:
The efficiency of hospitals is of interest to health insurers, government
authorities and hospital management itself. However, econometric methods
for determining (in)efficiency have severe drawbacks since hospitals are
multiproduct firms and because the duality between production and cost
functions cannot be assumed. In this work, non-parametric, deterministic
data envelopment analysis (DEA) is used to measure the relative
inefficiency of 89 Swiss hospitals covering the years 1993-1996 (310
observations). Special attention is given to the role of patient days in
the production of health. The findings depend on whether patient days are
viewed as an input of patient time or as an output, as in previous
studies. While the probability of a unit being inefficient cannot be
explained using the available data, the degree of overall inefficiency is
shown to significantly depend on the financial incentives faced by
management, in particular due to subsidization. Private hospitals do not
seem to be less inefficient than public ones; however, this may be caused
by their 'overusing' inputs that in fact are valued as amenities by
patients. This consideration points to an important limitation in applying
the purely quantitative criteria of DEA to hospitals.
Journal: Applied Economics
Pages: 361-370
Issue: 3
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210167183
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210167183
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Handle: RePEc:taf:applec:v:35:y:2003:i:3:p:361-370
Template-Type: ReDIF-Article 1.0
Author-Name: Russell Sobel
Author-X-Name-First: Russell
Author-X-Name-Last: Sobel
Author-Name: S. Travis Raines
Author-X-Name-First: S. Travis
Author-X-Name-Last: Raines
Title: An examination of the empirical derivatives of the favourite-longshot bias in racetrack betting
Abstract:
Market efficiency dictates it equally profitable to bet on any racing
participant, including the favourite or longshot. However, a
well-documented anomaly is that racetrack bettors tend to overbet
longshots and underbet favourites. This study presents and tests two
theoretical explanations for this favourite-longshot bias. The
unparalleled richness of the data allows the exploration of how the bias
changes with several key variables. This study finds the most popular
current explanation for the bias, the risk preference model, cannot
explain the data as well as an information-based model, in which the bias
depends on bet complexity and the information possessed by bettors.
Journal: Applied Economics
Pages: 371-385
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840110111176
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840110111176
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:371-385
Template-Type: ReDIF-Article 1.0
Author-Name: Marianne Sensier
Author-X-Name-First: Marianne
Author-X-Name-Last: Sensier
Title: Inventories and asymmetric business cycle fluctuations in the UK: a structural approach
Abstract:
This paper investigates the movement of manufacturing inventories and
production over the business cycle to arrive at an asymmetric structural
equilibrium-correction model. Initially cross-correlation coefficients and
deepness and steepness tests for skewness are utilized to present
descriptive statistics of the time series. Cointegration analysis is
performed on each disaggregate inventory by stage of production (finished
goods, work in progress and raw materials) with a set of explantory
variables. Restricted cointegration vectors are added to the symmetric and
non-symmetric specifications of the structural equilibrium-correction
model. These are compared by parameter constancy tests and one-step ahead
forecasts.
Journal: Applied Economics
Pages: 387-402
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210128735
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210128735
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:387-402
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Sylwester
Author-X-Name-First: Kevin
Author-X-Name-Last: Sylwester
Title: Changes in income inequality and the black market premium
Abstract:
Is a high black market premium for US dollars associated with rising or
falling income inequality within a nation? This paper empirically examines
this issue within a cross section of countries and finds that the black
market premium is strongly associated with rising income inequality as
measured by changes in the Gini coefficient. Others have used the black
market premium as a proxy to measure protectionist policies so a possible
implication is that protectionist policies further skew the distribution
of income within a country. However, other measures of protectionist
policies are not associated with changes in income inequality. Instead,
other factors which might drive the black market premium such as interest
rate differentials appear to be more relevant in explaining why the black
market premium is positively related with increases in income inequality.
Journal: Applied Economics
Pages: 403-413
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210134530
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210134530
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:403-413
Template-Type: ReDIF-Article 1.0
Author-Name: William Stein
Author-X-Name-First: William
Author-X-Name-Last: Stein
Author-Name: Philip Mizzi
Author-X-Name-First: Philip
Author-X-Name-Last: Mizzi
Title: An analysis of exotic wagers in a parimutuel setting
Abstract:
In US horse racing, there is increasing emphasis placed on the creation
of exotic wagers - those bets beyond the standard win, place and show.
Bets on multiple races that typically do not result in a winner for
several days are of particular interest to the industry. The growing
carryover pool helps attract people to the racetrack in a way similar to a
growing carryover in the lottery attracts more people to participate. This
article examines several multiple race bets and provides a framework for
their comparative analysis. The results of the analysis will help
racetrack management decide if a proposed bet is appropriate for their
particular track. This analysis shows a tradeoff between the difficulty of
winning the bet versus the amount of the ultimate payoff. If a bet is too
easy to win, then the carryover pool will never reach an attractive level.
If the bet is too difficult to win, then the bettors will lose interest
before the carryover pool is able to grow sufficiently large. The amount
of money wagered daily is an important consideration in determining the
appropriate type of exotic wager to implement.
Journal: Applied Economics
Pages: 415-421
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210140137
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210140137
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:415-421
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Mauser
Author-X-Name-First: Gary
Author-X-Name-Last: Mauser
Author-Name: Dennis Maki
Author-X-Name-First: Dennis
Author-X-Name-Last: Maki
Title: An evaluation of the 1977 Canadian firearm legislation: robbery involving a firearm
Abstract:
The effect of the 1977 Canadian firearm legislation on robberies
involving firearms is evaluated between 1974 and 1992 using a pooled
cross-section, time series model. The results show that the 1977
legislation did not reduce robbery involving firearms, nor did it have a
significant effect on the total robbery or armed robbery rates. The
legislation may even have acted perversely in that it may have increased
robberies with firearms. In general, these results are consistent with
previous published findings but contrast with unpublished governmental
studies. The implication that this legislation may have acted perversely
is new and requires further investigation.
Journal: Applied Economics
Pages: 423-436
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210143099
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210143099
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:423-436
Template-Type: ReDIF-Article 1.0
Author-Name: Krishna Akikina
Author-X-Name-First: Krishna
Author-X-Name-Last: Akikina
Author-Name: Hamed Al-Hoshan
Author-X-Name-First: Hamed
Author-X-Name-Last: Al-Hoshan
Title: Independence of monetary policy under fixed exchange rates: the case of Saudi Arabia
Abstract:
This study specifies a modified version of the monetary approach to the
balance of payments (MABP) model with free capital flow and fixed exchange
rates for Saudi Arabia, and tests the independence of monetary policy of
its central bank using annual data from 1960 to 1994. Further, capital
flight and speculative inventory behaviour of importers of consumer and
capital goods in Saudi Arabia are also tested to the expected exchange
rate depreciation during the periods of exchange turmoil against the
riyal. The results of this study indicate that Saudi Arabian Monetary
Authority has at best a weak control on its money supply which is in
accord with one of the predictions of MABP theory. Further, the study
found little support to the speculative inventory behaviour of the
importers of consumer and capital goods in Saudi Arabia against exchange
rate depreciation of the riyal. However, the results suggest that the
expected change in exchange rate depreciation has a positive and a
significant impact on capital flight in Saudi Arabia.
Journal: Applied Economics
Pages: 437-448
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210148049
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148049
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:437-448
Template-Type: ReDIF-Article 1.0
Author-Name: Salvator Nkunzimana
Author-X-Name-First: Salvator
Author-X-Name-Last: Nkunzimana
Author-Name: H. Alan Love
Author-X-Name-First: H. Alan
Author-X-Name-Last: Love
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: Mexican agricultural trade under the GATT
Abstract:
Expected effects from partially lifting tariff barriers on the Mexican
agricultural sector are investigated using a restricted profit function
(RPF) approach. Short-run and intermediate-run effects of the
implementation of GATT minimum tariff provisions on Mexican agricultural
trade are examined. Specification tests reveal the appropriateness of the
RPF approach, that exports should not be aggregated with non-traded
production into a single output, and that the farm sector behaves as an
'almost' price-taking, profit-maximizing firm. Policy simulations suggest
important short-run changes in agricultural trade and chemical use and
intermediate-run changes in agricultural trade, labour wage, chemical use,
capital investments, and net farm income.
Journal: Applied Economics
Pages: 449-459
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210148076
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148076
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:449-459
Template-Type: ReDIF-Article 1.0
Author-Name: Uma Kambhampati
Author-X-Name-First: Uma
Author-X-Name-Last: Kambhampati
Author-Name: Ashok Parikh
Author-X-Name-First: Ashok
Author-X-Name-Last: Parikh
Title: Disciplining firms: the impact of trade reforms on profit margins in Indian industry
Abstract:
The paper analyses the effects of increased trade exposure on the
profitability of firms in Indian industry. While trade reforms are often
expected to decrease profit margins as firms struggle to compete in
international markets, there is the possibility that increased competition
may improve firm efficiency and provide a positive impetus to firm
profitability. This paper is different from many others in this area in
that it considers both these possibilities. An efficiency index is created
to directly analyse the impact of changing efficiency levels on firm
profit margins. Results indicate that liberalization significantly
influenced profit margins. However, its main effect is through the impact
that it has had on other firm variables - market shares, advertising, R&D
and exports - all of which changed after 1991. While exports have had a
pro-competitive effect on profit margins in the selected sample, AD and
R&D both cause an increase in profit margins. It is also found that
neither capital nor managerial capabilities (as proxied by remuneration)
are particularly effective in increasing profit margins.
Journal: Applied Economics
Pages: 461-470
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210155177
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210155177
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:461-470
Template-Type: ReDIF-Article 1.0
Author-Name: Shunxiang Wu
Author-X-Name-First: Shunxiang
Author-X-Name-Last: Wu
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: Yaochi Lu
Author-X-Name-First: Yaochi
Author-X-Name-Last: Lu
Title: Estimation and decomposition of technical efficiency for sugarbeet farms
Abstract:
This study computes technical efficiency for Idaho sugarbeet farms and
decomposes it into pure technical efficiency, scale efficiency, and
congestion efficiency using nonparametric procedures. The results indicate
that the average efficiency is 0.88 with 45% of the farms in the sample
exhibiting full efficiency. Improper scale operation and input
overutilization are the major sources of inefficiency for remaining farms.
Technical efficiency is independent of farm size. A Tobit model was used
to examine the impacts of variables such as farm size, specialization,
tenancy position, hired labour, location, and managerial ability on
efficiency. Inefficiency in sugarbeet production results in a shortfall of
potential revenues not only for producers, but also for landlords and
processors.
Journal: Applied Economics
Pages: 471-484
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210161819
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161819
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:471-484
Template-Type: ReDIF-Article 1.0
Author-Name: T. -W. Ho
Author-X-Name-First: T. -W.
Author-X-Name-Last: Ho
Title: Regime-switching properties of the optimal seigniorage hypothesis: the case of Taiwan
Abstract:
The optimal seigniorage hypothesis argues that the government will
attempt to minimize the sum of social costs arising from the rate of
inflation and taxation, which results in the testable prediction that
inflation and rate of tax revenue will be positively correlated. This
article empirically examines the regime-switching properties of this
theory. Using quarterly data from Taiwan over 1961-2000 sampling periods,
it finds that the optimal seigniorage hypothesis is weakly supported, and
its explanatory power for the long-run inflation behaviour is weak.
Journal: Applied Economics
Pages: 485-494
Issue: 4
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015919
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015919
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Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:485-494
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Freeman
Author-X-Name-First: Donald
Author-X-Name-Last: Freeman
Title: Is health care a necessity or a luxury? Pooled estimates of income elasticity from US state-level data
Abstract:
This paper provides new evidence on the income elasticity of health care
by combining stationarity and cointegration tests of health care
expenditure and incomes with estimates of the cointegrating relationship
between them. A recently updated dataset of health care expenditures and
disposable personal income for the US states for the years 1966-1998 is
used. The principal findings are that health care expenditures and incomes
at the state level are non-stationary and cointegrated. Dynamic OLS
cointegrating regressions of the pooled state time series estimate the
income elasticity of health care at 0.817 to 0.844, well below unity,
confirming that health care expenditure, even at the aggregate level, is a
necessity good.
Journal: Applied Economics
Pages: 495-502
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210138374
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210138374
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:495-502
Template-Type: ReDIF-Article 1.0
Author-Name: Stathis Klonaris
Author-X-Name-First: Stathis
Author-X-Name-Last: Klonaris
Author-Name: David Hallam
Author-X-Name-First: David
Author-X-Name-Last: Hallam
Title: Conditional and unconditional food demand elasticities in a dynamic multistage demand system
Abstract:
This paper estimates conditional and unconditional demand elasticities in
a three stage analysis of consumer demand for food and non-food items in
Greece. A dynamic version of the AIDS model is specified and estimated,
and full system misspecification tests applied. Correction formulas for
price and expenditure elasticities are used to calculate unconditional
elasticities from conditional demand sub-systems. All food items rank as
price inelastic. Deviations between the calculated conditional and
unconditional price and expenditure elasticities are found to be
significant, demonstrating the importance of correcting conditional
elasticities before they can be used for policy purposes or welfare
analyses.
Journal: Applied Economics
Pages: 503-514
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210148058
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148058
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:503-514
Template-Type: ReDIF-Article 1.0
Author-Name: Mathias Hoffmann
Author-X-Name-First: Mathias
Author-X-Name-Last: Hoffmann
Title: Cross-country evidence on the link between the level of infrastructure and capital inflows
Abstract:
The relationship between public infrastructure and international capital
flows is empirically investigated. Out of a sample of 30 countries a
cross-sectional econometric model is constructed to estimate the effects.
Different components of infrastructure variables are tested in relation to
their impact on different kinds of external capital liabilities. The
results suggest a positive relationship between the level of
infrastructure and capital inflows. However, statistical significance
cannot be established for all variables in question.
Journal: Applied Economics
Pages: 515-526
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015874
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015874
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:515-526
Template-Type: ReDIF-Article 1.0
Author-Name: R. Milbourne
Author-X-Name-First: R.
Author-X-Name-Last: Milbourne
Author-Name: G. Otto
Author-X-Name-First: G.
Author-X-Name-Last: Otto
Author-Name: G. Voss
Author-X-Name-First: G.
Author-X-Name-Last: Voss
Title: Public investment and economic growth
Abstract:
This article uses an extension of Mankiw, Romer and Weil's augmented
Solow-Swan growth model to examine whether public investment has a
distinct role as a determinant of economic growth. It considers both the
predictions of the model in steady state and in transition to steady
state. For the steady state model, there is no significant effect from
public investment on the level of output per worker. Using standard
ordinary least squares (OLS) methods for the transition model, it observes
a significant contribution to economic growth from public investment. When
instrumental variables methods are used, however, the associated standard
errors are much larger and the contribution of public investment is
statistically insignificant.
Journal: Applied Economics
Pages: 527-540
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015883
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015883
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:527-540
Template-Type: ReDIF-Article 1.0
Author-Name: L. Achy
Author-X-Name-First: L.
Author-X-Name-Last: Achy
Title: Parity reversion persistence in real exchange rates: middle income country case
Abstract:
This article investigates purchasing power parity (PPP) in the specific
context of middle income countries. To circumvent the low power of
traditional stationarity tests (Augmented Dickey-Fuller and
Phillips-Perron tests), it performs variance ratio and fractional
integration tests in addition to Perron's test that accounts for potential
structural changes in real exchange rate processes. Beyond estimating
half-life shocks to PPP, this article attempts to explain these estimates
using a set of country specific variables as suggested by economic theory.
The evidence suggests that reversion to parity tends to be faster in high
inflation countries and that productivity improvement leads to a higher
level of persistence. Openness to trade tends to reduce the extent of
deviations from parity but this result does not appear to be statistically
robust. Evidence shows also that deviations are less persistent under a
fixed exchange rate regime and under unrestricted capital mobility.
Journal: Applied Economics
Pages: 541-553
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015937
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015937
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:541-553
Template-Type: ReDIF-Article 1.0
Author-Name: R. H. Koning
Author-X-Name-First: R. H.
Author-X-Name-Last: Koning
Title: An econometric evaluation of the effect of firing a coach on team performance
Abstract:
Firing the manager is a drastic measure employed by firms to deal with
poor performance. However, data on within-firm dynamics are scarce, and
the firing of individual managers is rarely recorded in the firm level
data currently available. This makes the value of firing a manager
difficult to assess. Data on sports offer a unique opportunity to study
this phenomenon because the firing of a coach is usually well-publicized.
Using data on soccer, the author evaluates the effect of the firing of a
coach on team performance. As teams do not face the same opponents before
and after a coach is fired, the issue of sample selectivity is addressed.
Journal: Applied Economics
Pages: 555-564
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000015946
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000015946
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:555-564
Template-Type: ReDIF-Article 1.0
Author-Name: Jarko Fidrmuc
Author-X-Name-First: Jarko
Author-X-Name-Last: Fidrmuc
Author-Name: Andreas Worgotter
Author-X-Name-First: Andreas
Author-X-Name-Last: Worgotter
Author-Name: Julia Worz
Author-X-Name-First: Julia
Author-X-Name-Last: Worz
Title: Does foreign policy determine foreign trade? Cointegration analysis of exports from selected countries to the Middle East
Abstract:
The paper analyses the relations between foreign policy and export
performance. The paper deals with exports of selected European countries
and the USA to Middle Eastern countries including Israel. Cointegration
analysis is used to identify common stochastic trends in export series. A
long-term relationship implies no significant influence of foreign policy
differences on trade performance. According to the Johansen tests applied
to bivariate and multivariate models, German, Austrian, Dutch and EU
exports to Israel are cointegrated with the US exports, while Swiss
exports are never cointegrated with the exports of these countries. This
result confirms the importance of foreign policy in trade performance.
Journal: Applied Economics
Pages: 565-571
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000018196
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018196
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:565-571
Template-Type: ReDIF-Article 1.0
Author-Name: Sachiko Miyata
Author-X-Name-First: Sachiko
Author-X-Name-Last: Miyata
Title: Household's risk attitudes in Indonesian villages
Abstract:
This paper estimates attitudes towards risk using data obtained through
interviews of 400 households in villages in Indonesia. Participants were
invited to play investment games in order to identify household risk
attitudes. The game result supports the hypothesis of non-decreasing
partial relative risk aversion. Using an ordered probit model, the
determinants of risk attitude were investigated. The results show that the
variable of co-residence is important: an individual living with his or
her parents is less risk averse than an individual in a nuclear household.
Co-residence can be viewed as a type of 'security blanket'. Partial
relative risk aversion decreases with the level of education and wealth.
Journal: Applied Economics
Pages: 573-583
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000020823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000020823
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:573-583
Template-Type: ReDIF-Article 1.0
Author-Name: Loa Buchli
Author-X-Name-First: Loa
Author-X-Name-Last: Buchli
Author-Name: Massimo Filippini
Author-X-Name-First: Massimo
Author-X-Name-Last: Filippini
Author-Name: Silvia Banfi
Author-X-Name-First: Silvia
Author-X-Name-Last: Banfi
Title: Estimating the benefits of low flow alleviation in rivers: the case of the Ticino River
Abstract:
In Switzerland 60% of electricity is produced by hydropower plants. The
construction and operation of these plants determine some negative
environmental externalities, such as diminishing groundwater levels and
spring flows, and a reduction in river flow, which can severely curtail
recreational and fishing activities. This study concentrates on an ex-ante
appraisal of the monetary benefits resulting from an enhancement of river
flow for recreational fishing purposes. A comparison of estimates of these
benefits to the corresponding costs, in terms of loss of electricity
production, incurred by hydropower plants to alleviate low flows may be
useful for policy makers. For this analysis, as suggested by Layman et al.
(Land Economics 72, pp. 113-128, 1996), the Travel Cost Method (TCM) is
extended to estimate the economic value of recreational fishing in the
Ticino River (the most important river of the Canton Ticino) under
existing and hypothetical river flow conditions. Anglers were asked to
state how the number of trips they took to the Ticino River would change
if an increase in the river flow was imposed on the hydropower plants. The
empirical results show that an enhancement of river flow increases the
annual consumer surplus for a typical angler by approximately 440 SFr.
Journal: Applied Economics
Pages: 585-590
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000056797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056797
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:585-590
Template-Type: ReDIF-Article 1.0
Author-Name: Ayca Tekin-Koru
Author-X-Name-First: Ayca
Author-X-Name-Last: Tekin-Koru
Author-Name: Erdal Ozmen
Author-X-Name-First: Erdal
Author-X-Name-Last: Ozmen
Title: Budget deficits, money growth and inflation: the Turkish evidence
Abstract:
The paper investigates the long-run relationships between budget
deficits, inflation and monetary growth in Turkey considering two
alternative trivariate systems corresponding to the narrowest and the
broadest monetary aggregates. While the joint endogeneity of money and
inflation rejects the validity of the monetarist view, lack of a direct
relationship between inflation and budget deficits makes the pure fiscal
theory explanations illegitimate for the Turkish case. Consistent with the
policy regime of financing domestic debt through the commercial banking
system, budget deficits lead to a growth not of currency seigniorage but
of broad money in Turkey. This mode of deficit financing, leading to the
creation of near money and restricting the scope for an effective monetary
policy, may not be sustainable, as the government securities/broad money
ratio cannot grow without limit.
Journal: Applied Economics
Pages: 591-596
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000025440
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000025440
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:591-596
Template-Type: ReDIF-Article 1.0
Author-Name: S. Mcguinness
Author-X-Name-First: S.
Author-X-Name-Last: Mcguinness
Title: Graduate overeducation as a sheepskin effect: evidence from Northern Ireland
Abstract:
This article examines the nature of graduate overeducation amongst a
group of applicants to a graduate conversion programme. It was found that
while a substantial proportion of earnings differentials were associated
with a mismatch between individual skill levels and job requirements, wage
gaps were still likely to occur should such mismatches be eliminated. The
evidence suggests that graduate wage levels are heavily related to
sheepskin effects associated with the attainment of jobs with graduate
level entry requirements. These sheepskin effects suggest that the process
of job categorization is arbitrary in nature, with stated job requirements
somewhat independent of actual skill requirements. The analysis suggests
that graduate overeduction is better understood within the context of both
skill and categorization mismatches as opposed to skill matches alone.
Journal: Applied Economics
Pages: 597-608
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000029284
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000029284
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:597-608
Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Author-Name: I. A. Venetis
Author-X-Name-First: I. A.
Author-X-Name-Last: Venetis
Title: Purchasing power parity over two centuries: trends and nonlinearity
Abstract:
In two recent contributions Lothian and Taylor, and Cuddington and Liang,
produced empirical evidence that annual data for the dollar-sterling real
exchange rate spanning two centuries exhibited a non-linear deterministic
trend. This trend could be proxying Harrod-Balassa-Samuelson effects.
Lothian and Taylor showed that a linear stationary autoregressive mode,
which embodied a cubic trend, implied much faster mean reversion of the
real exchange rate to shocks than a model that excluded the trend. This
article shows that both non-linearity and a deterministic trend can be
allowed for in a theoretically appealing manner and that the fitted models
provide a parsimonious explanation of both the dollar-sterling and
franc-sterling real exchange rates over the two centuries of data.
Generalized impulse response function analysis of the models demonstrates
that the speed of adjustment to shocks can be even faster when trends are
considered.
Journal: Applied Economics
Pages: 609-617
Issue: 5
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000035773
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035773
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Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:609-617
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Carruth
Author-X-Name-First: Alan
Author-X-Name-Last: Carruth
Author-Name: Andrew Dickerson
Author-X-Name-First: Andrew
Author-X-Name-Last: Dickerson
Title: An asymmetric error correction model of UK consumer spending
Abstract:
This paper augments the Granger and Lee (Journal of Applied Econometrics,
4, 1989) non-symmetric error (equilibrium) correction model to assess the
possibility that, in the aggregate, consumers respond differently to
different types of disequilibrium error. This idea is illustrated using an
Engle-Granger implementation of the Davidson, Hendry, Srba and Yeo (DHSY,
Economic Journal, 80, 1978) model. The disequilibrium error is
endogenously determined by the long-run, empirical model and a binary
dummy variable captures two alternative states, above and below
equilibrium spending. Interaction of the dummy variable with key variables
in a short-run dynamic model of UK consumer spending augments the dynamics
of the DHSY model. Income elasticities, inflation elasticities and speeds
of adjustment are all seen to change significantly depending on whether
the disequilibrium error is positive or negative, and is suggestive of
asymmetric behaviour on the part of consumers. Moreover, the
asymmetrically augmented model substantially outperforms a symmetric model
with standard error improvements in excess of 50%.
Journal: Applied Economics
Pages: 619-630
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000035782
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035782
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:619-630
Template-Type: ReDIF-Article 1.0
Author-Name: C. J. C. Bacha
Author-X-Name-First: C. J. C.
Author-X-Name-Last: Bacha
Title: The determinants of reforestation in Brazil
Abstract:
This article analyses the main determinants of reforestation in Brazil
during the 1980s and 1990s. In the year 2000 Brazil had the sixth largest
planted forests area in the world. The planted forests in Brazil saw a
huge increase from 1960 to 1985. Since then, however, that stock has
decreased, but the demand for roundwood continues to increase. That
situation will result in a scarcity of roundwood from reforestation in
Brazil in few years. The expected roundwood scarcity motivates an
econometric study to compare market forces and economic policies in
stimulating the reforestation in Brazil. Considering the main firms
reforesting in Brazil, it can be pointed out that small and medium farmers
have been planting forests while private or public programmes are present.
Otherwise, large wood-based firms consider factors other than prices (such
as their future demand for roundwood) to be more important in their
planting decisions. Those results cast doubts about the efficiency of the
market price system in solving the future scarcity of roundwood in Brazil.
Journal: Applied Economics
Pages: 631-639
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000035791
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035791
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:631-639
Template-Type: ReDIF-Article 1.0
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Author-Name: Gary Brester
Author-X-Name-First: Gary
Author-X-Name-Last: Brester
Author-Name: John Marsh
Author-X-Name-First: John
Author-X-Name-Last: Marsh
Title: Exchange rate pass-through, price discrimination, and US meat export prices
Abstract:
Exports are becoming increasingly important for US livestock and poultry
producers. Consequently, meat industry participants are concerned about
the potential impacts of variations in relative currency values. These
effects are considered by quantifying the impacts of relative exchange
rates on US beef, pork and poultry export prices. In addition, the impacts
of GATT and NAFTA agreements on exchange rate pass-through are considered.
The results indicate incomplete exchange rate pass-through occurs for
several countries. Trade liberalization under GATT has positively
influenced US beef and poultry export prices.
Journal: Applied Economics
Pages: 641-650
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000035809
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035809
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:641-650
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph BOhringer
Author-X-Name-First: Christoph
Author-X-Name-Last: BOhringer
Author-Name: Andreas LOschel
Author-X-Name-First: Andreas
Author-X-Name-Last: LOschel
Title: Market power and hot air in international emissions trading: the impacts of US withdrawal from the Kyoto Protocol
Abstract:
Ten years after the initial Climate Change Convention from Rio in 1992
the industrialized world is finally likely to ratify the Kyoto Protocol,
which will impose legally binding greenhouse gas emission reductions on
the developed world. However, the Kyoto Protocol will enter into force
without the USA, which withdrew under President Bush in March 2001.
Accounting for hot air and market power of the Former Soviet Union on
emission permit markets, it is shown that US withdrawal has important
consequences on environmental effectiveness, compliance costs, and excess
costs of market power under the Kyoto Protocol. Non-compliance of the USA
implies a dramatic decrease in environmental effectiveness as well as
compliance costs of OECD countries whereas the Former Soviet Union and
transitional economies in Eastern Europe suffer from a huge decline in
permit sales revenues. Excess costs of market power in permit trade
increase in relative terms, but decline substantially in absolute terms
due to US withdrawal. Policy options are quantified to bypass the problems
of hot air and market power through compensation mechanisms.
Journal: Applied Economics
Pages: 651-663
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684021000035818
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684021000035818
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:651-663
Template-Type: ReDIF-Article 1.0
Author-Name: James Alleman
Author-X-Name-First: James
Author-X-Name-Last: Alleman
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Scott Savage
Author-X-Name-First: Scott
Author-X-Name-Last: Savage
Title: Dominant carrier market power in US international telephone markets
Abstract:
An econometric model is used to examine market power in US international
telephone markets. Lerner index estimates suggest AT&T's collection
rate-cost margin was between 12% and 24% during 1991 to 1995. Although
Lerner estimates imply deadweight welfare losses of up to US $261 million
per annum, such losses are small compared to those from the inefficient
pricing of international interconnection. Settlement rate-cost margins on
US bilateral markets of approximately 89% translate into a US $4907
million transfer from consumers to carriers in 1995.
Journal: Applied Economics
Pages: 665-673
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000040957
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000040957
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:665-673
Template-Type: ReDIF-Article 1.0
Author-Name: B. L. Pandit
Author-X-Name-First: B. L.
Author-X-Name-Last: Pandit
Author-Name: N. S. Siddharthan
Author-X-Name-First: N. S.
Author-X-Name-Last: Siddharthan
Title: MNEs and market valuation of firms: a cross-sectional study of Indian electrical and electronic goods manufacturing firms
Abstract:
This paper argues that inter-firm differences in the direction of change
in market valuation will depend mainly on the 'salience' and unique risk
characteristics of the firms. These characteristics are largely influenced
by mulinational enterprise (MNE) affiliation. The sample for the study
consists of electrical and electronic manufacturing firms in India for
1994-1996. Maximum Likelihood Estimates of the Probit model show that even
during a downswing in the stock market MNE affiliates were able to hold
their own and increase their market valuation. These results hold good for
a wide variety of products produced in this sector where both MNEs and
local firms compete. The results have implications for theories relating
to MNEs, stock market valuation and also for policy makers.
Journal: Applied Economics
Pages: 675-681
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000042991
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000042991
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:675-681
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Filippini
Author-X-Name-First: Massimo
Author-X-Name-Last: Filippini
Author-Name: Paola Prioni
Author-X-Name-First: Paola
Author-X-Name-Last: Prioni
Title: The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration
Abstract:
In deregulated transport markets, a firm's ownership status and
management system represent an important issue. Property right theory
suggests that productivity and performance are higher in the private than
in the public sector. In Switzerland, providers of bus transportation are
traditionally corporations, though a large part of their equity shares are
still held by the public sector (federal government, cantons,
municipalities). This paper examines the potential impact of ownership on
the cost of bus service provision for a sample of private, public and
mixed bus companies in Switzerland. The estimation of a translog cost
model has been considered for 34 bus transit companies observed over 5
years (1991-1995). The results only partially confirm that if the private
sector holds shares in the company's capital, efficiency is enhanced. In
addition, measures of economies of scale and density are derived and
discussed within the actual public transport policy.
Journal: Applied Economics
Pages: 683-690
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000056788
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056788
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:683-690
Template-Type: ReDIF-Article 1.0
Author-Name: A. E. Akinlo
Author-X-Name-First: A. E.
Author-X-Name-Last: Akinlo
Author-Name: A. F. Odusola
Author-X-Name-First: A. F.
Author-X-Name-Last: Odusola
Title: Assessing the impact of Nigeria's naira depreciation on output and inflation
Abstract:
Journal: Applied Economics
Pages: 691-703
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000056823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056823
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:691-703
Template-Type: ReDIF-Article 1.0
Author-Name: S. Carbo
Author-X-Name-First: S.
Author-X-Name-Last: Carbo
Author-Name: E. P. M. Gardener
Author-X-Name-First: E. P. M.
Author-X-Name-Last: Gardener
Author-Name: J. Williams
Author-X-Name-First: J.
Author-X-Name-Last: Williams
Title: A note on technical change in banking: the case of European savings banks
Abstract:
Using a Fourier flexible form cost function methodology, technical
progress is estimated for a large sample of European savings banks between
1989 and 1997. On average, technical progress has reduced savings banks
total costs by around 3.4% per annum. Since the European savings banks
industry is characterized by technology sharing arrangements, a test is
made to determine whether technical change is positively related to bank
size. The estimates identify two important features of how technical
progress has effected European savings banks' costs. First, costs
reductions arising from technical change diminish between 1989 and 1997.
Second, technical progress has a bigger impact on reducing large savings
banks' costs, chiefly because of its influence on input prices, that is,
non-neutral technical change increases systematically with size. This
suggests that large savings banks have greater flexibility in reducing
costs in response to technical progress, implying that technology sharing
arrangements have not led to uniform reductions in banks' total cost.
Rather, large savings banks are market leaders and small banks market
followers. Since larger banks benefit more from technical progress this
may be an important factor promoting consolidation in the European savings
banks industry.
Journal: Applied Economics
Pages: 705-719
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000035836
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035836
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:705-719
Template-Type: ReDIF-Article 1.0
Author-Name: Cuneyt Koyuncu
Author-X-Name-First: Cuneyt
Author-X-Name-Last: Koyuncu
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Title: E-commerce and consumer's purchasing behaviour
Abstract:
After its first exposure to the public in 1993, there has been a rapid
increase in the use of the Internet for different purposes, particularly
for electronic trade. In such a new trade area, there are a lot of issues
to be addressed with regard to the consumer's purchasing behaviour. This
study analyses the roles of sexual preference, primary place of online
access, and online experience as well as demographic and economic factors
on the consumer's purchasing decision. Moreover, this study investigates
the impact of the potential and/or prevalent critical issues facing the
Internet (e.g. taxation of services, privacy, censorship, etc.) on online
orders. Surprisingly, sexual preferences have a large significant effect
on online purchases. Gay and bisexual people are more likely to shop from
the Internet than the other ones. The results, also, suggest that people
with more online experiences in a more private and secure environment like
home are disposed to order more from the Internet. In addition to that,
only the issues of taxation of services and privacy have some
statistically significant effects on online purchasing decisions. The
former and latter have positive and negative impacts on online orders
respectively.
Journal: Applied Economics
Pages: 721-726
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000020850
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000020850
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:721-726
Template-Type: ReDIF-Article 1.0
Author-Name: Rosina Moreno
Author-X-Name-First: Rosina
Author-X-Name-Last: Moreno
Author-Name: Enrique LOpez-bazo
Author-X-Name-First: Enrique
Author-X-Name-Last: LOpez-bazo
Author-Name: Manuel ArtIs
Author-X-Name-First: Manuel
Author-X-Name-Last: ArtIs
Title: On the effectiveness of private and public capital
Abstract:
This study assesses the effectiveness of private and public capital
investments in the performance of manufactures within the framework of the
duality theory. The response of costs of production and input utilization
to changes in the stocks of private and public capital is measured by the
appropriate elasticities obtained from a cost function. Instead of
considering private capital either as a variable or fixed input on a
priori grounds, its nature is checked, that is, the study discriminates
between a long- and a short-run situation. The empirical exercise is made
for the manufacturing industries in the Spanish regions.
Journal: Applied Economics
Pages: 727-740
Issue: 6
Volume: 35
Year: 2003
X-DOI: 10.1080/1350485032000066043
File-URL: http://www.tandfonline.com/doi/abs/10.1080/1350485032000066043
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Handle: RePEc:taf:applec:v:35:y:2003:i:6:p:727-740
Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Effects of exports on productivity and growth in India: an industry-based analysis
Abstract:
This study analyses the effects of exports on the level of output per
capita using the panel estimates of an extended version of the Mankiw,
Romer and Weil (The Quarterly Journal of Economics, CVII, 407-37, 1992)
model, and on the total factor productivity using the time series
estimators. The analysis is carried out for ten industries in the
manufacturing sector in India. The results do not provide any evidence of
convergence, and instead support the contrary evidence of divergence among
industries. The exports do not induce convergence and instead seem to
accentuate the process of divergence among industries. The study provides
some evidence for the significant effects of exports on the level of
output per capita and TFP in the manufacturing sector. The effects of
exports on TFP are significant in half of the sample industries, while in
the remaining half these are statistically insignificant.
Journal: Applied Economics
Pages: 741-749
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210139337
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210139337
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:741-749
Template-Type: ReDIF-Article 1.0
Author-Name: Iris Claus
Author-X-Name-First: Iris
Author-X-Name-Last: Claus
Title: Estimating potential output for New Zealand
Abstract:
One of the main indicators of inflationary pressures used by the Reserve
Bank of New Zealand is the output gap. An alternative to the Reserve
Bank's incumbent measure of potential output is obtained using a
structural vector autoregression (SVAR) methodology with long-run
restrictions. The Reserve Bank's official measure of the output gap and
the estimate obtained from the SVAR model tend to agree about the state of
the cycle, especially during the 1970s and 1990s. However, during the
1980s, the period of economic reforms, they are more dissimilar.
Journal: Applied Economics
Pages: 751-760
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210155168
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210155168
File-Format: text/html
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:751-760
Template-Type: ReDIF-Article 1.0
Author-Name: Rachel Connelly
Author-X-Name-First: Rachel
Author-X-Name-Last: Connelly
Author-Name: Jean Kimmel
Author-X-Name-First: Jean
Author-X-Name-Last: Kimmel
Title: Marital status and full-time/part-time work status in child care choices
Abstract:
Using recent SIPP data, this study estimates two econometric models to
study the differences in the effect of child care costs on employment
status and differences in the mode of child care used controlling for
employment status. For both married and single women, full-time employment
is more elastic with respect to changes in the price of child care than
part-time employment and employment elasticities are larger for single
than married mothers. In the model of child care modal choice, we find
that an increased probability of full-time employment is associated with
an increase in the use of centre care for both married and single mothers,
and that price elasticities of modal choice are larger for single than
married mothers.
Journal: Applied Economics
Pages: 761-777
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000020841
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000020841
File-Format: text/html
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:761-777
Template-Type: ReDIF-Article 1.0
Author-Name: K. Patterson
Author-X-Name-First: K.
Author-X-Name-Last: Patterson
Author-Name: Saeed Heravi
Author-X-Name-First: Saeed
Author-X-Name-Last: Heravi
Title: Weighted symmetric tests for a unit root: response functions, power, test dependence and test conflict
Abstract:
The most frequently applied test statistics for a unit root are the
Dickey-Fuller tests, which are built into many econometric packages along
with MacKinnon's empirical response functions. This article provides
empirical response functions for some easy to compute alternative test
statistics that are generally much more powerful than the Dickey-Fuller
tests; specifically, these are the Dickey-Fuller tests and the weighted
symmetric versions of the and tests. The empirical response functions
presented here take into account adjustments for lag length in the
maintained regression, and also extend the design of the simulation
experiments compared to previous work. A second aspect of this study
concerns the widespread practice in applied econometrics of using more
than one test for the same feature without an assessment of the
implications for the cumulative significance level and probability of test
conflict. Tests for a unit root being are a leading example of this
practice. Using the extended set of unit root tests considered here, the
extent of test dependence is simulated and overall type one error
calculated. Two empirical applications illustrate the key principles.
Journal: Applied Economics
Pages: 779-790
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000030372
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000030372
File-Format: text/html
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:779-790
Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Lael Joseph
Author-X-Name-First: Nathan Lael
Author-X-Name-Last: Joseph
Title: Using monthly returns to model conditional heteroscedasticity
Abstract:
This empirical study examines the extent of non-linearity in a
multivariate model of monthly financial series. To capture the conditional
heteroscedasticity in the series, both the GARCH(1,1) and
GARCH(1,1)-in-mean models are employed. The conditional errors are assumed
to follow the normal and Student- t distributions. The non-linearity in
the residuals of a standard OLS regression are also assessed. It is found
that the OLS residuals as well as conditional errors of the GARCH models
exhibit strong non-linearity. Under the Student density, the extent of
non-linearity in the GARCH conditional errors was generally similar to
those of the standard OLS. The GARCH-in-mean regression generated the
worse out-of-sample forecasts.
Journal: Applied Economics
Pages: 791-801
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684021000088536
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684021000088536
File-Format: text/html
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:791-801
Template-Type: ReDIF-Article 1.0
Author-Name: P. Beneito
Author-X-Name-First: P.
Author-X-Name-Last: Beneito
Title: A complete system of Engel curves in the Spanish economy
Abstract:
The main goal of this article is the estimation of the consumption-income
relationship along with socio-economic factors using cross section data
from the Spanish Household Expenditure Survey 1991. The data has been
grouped according to exogenous criteria to avoid the problem of null
expenditure. First, a non-linear system of equation is estimated, from
which the linear form that best fits the used data is tested. Finally,
income elasticities are calculated considering three alternative
formulations depending on how an initial income increment is distributed
among consumers. Income elasticities are shown for the whole income
distribution
Journal: Applied Economics
Pages: 803-816
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000040948
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000040948
File-Format: text/html
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:803-816
Template-Type: ReDIF-Article 1.0
Author-Name: Nedka Ivanova
Author-X-Name-First: Nedka
Author-X-Name-Last: Ivanova
Author-Name: Philip Dawson
Author-X-Name-First: Philip
Author-X-Name-Last: Dawson
Author-Name: John Lingard
Author-X-Name-First: John
Author-X-Name-Last: Lingard
Title: Macroeconomic Impacts on Bulgarian Agriculture during Transition
Abstract:
An unstable and erratic macroeconomy in an economy in transition might be
expected to affect agricultural performance. This is tested for Bulgaria
between 1992 and 1997 using impulse response functions from a vector
autoregressive (VAR) model. Despite data limitations, it is found that
shocks to the foreign exchange rate and interest rate feed into farm
prices and agricultural exports but equilibrium will be re-established
within 5 years. Agricultural policies may not be sufficient to counteract
the wider macroeconomic forces.
Journal: Applied Economics
Pages: 817-823
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000050595
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000050595
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:817-823
Template-Type: ReDIF-Article 1.0
Author-Name: Abdullahi Abdulkadri
Author-X-Name-First: Abdullahi
Author-X-Name-Last: Abdulkadri
Title: Estimating risk aversion coefficients for dry land wheat, irrigated corn and dairy producers in Kansas
Abstract:
The risk attitudes of dry land wheat, irrigated corn, and dairy producers
in Kansas are examined using the nonlinear mean-standard deviation
approach. Results of analyses indicated that dryland wheat and dairy
producers are characterized by increasing absolute and increasing relative
risk aversion while irrigated corn producers are characterized by constant
absolute and increasing relative risk aversion. Both crop enterprises
exhibited constant returns to scale technology while the dairy enterprise
exhibited decreasing returns to scale. Gross farm income was significant
and positively related to relative risk aversion.
Journal: Applied Economics
Pages: 825-834
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003648032000050612
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003648032000050612
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:825-834
Template-Type: ReDIF-Article 1.0
Author-Name: Sharmistha Self
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Self
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Title: How effective is public health expenditure in improving overall health? A cross-country analysis
Abstract:
The primary emphasis of this paper is on seeking some justification for
the worldwide phenomenon of increasing government involvement in
health-care. The disability-adjusted-health-expectancy (DALE) rankings of
countries in the World Health Report, 2000, ranked wealthier countries,
with a typically large public sector involvement in health-care, higher on
the list. Contrary to the possible implications for this ranking, this
paper finds that the comparatively higher DALE in wealthier countries is
not a result of greater public health expenditures. In the middle income
and less developed countries, however, there is some evidence of effective
public involvement in health-care.
Journal: Applied Economics
Pages: 835-845
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000056751
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056751
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:835-845
Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Leech
Author-X-Name-First: Dennis
Author-X-Name-Last: Leech
Author-Name: Miguel Manjon
Author-X-Name-First: Miguel
Author-X-Name-Last: Manjon
Title: Corporate governance and game theoretic analyses of shareholder power: the case of Spain
Abstract:
The definition and implementation of control is at the heart of the
corporate governance debate. The paper approaches the issue by using power
indices derived from the theory of cooperative games. An application to
Spanish listed firms shows that incentives for large shareholders to form
controlling blocs are high. In the Spanish system of corporate governance
ownership concentration is therefore the main mechanism to mitigate agency
problems between shareholders and managers. Moreover, these results
suggest that the Shapley-Shubik index is not an appropriate measure of
shareholder power.
Journal: Applied Economics
Pages: 847-858
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000026593
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000026593
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:847-858
Template-Type: ReDIF-Article 1.0
Author-Name: Evan Tanner
Author-X-Name-First: Evan
Author-X-Name-Last: Tanner
Author-Name: Alberto Ramos
Author-X-Name-First: Alberto
Author-X-Name-Last: Ramos
Title: Fiscal sustainability and monetary versus fiscal dominance: evidence from Brazil, 1991-2000
Abstract:
Under a monetary dominant (MD) regime, the primary surplus adjusts to
limit debt growth, permitting monetary policy to be conducted
independently of fiscal financing requirements. In Brazil, some evidence
favours an MD regime for 1995-1997, but not for the decade of the 1990s as
a whole. While fiscal adjustments of 1999 yielded a primary surplus of
about 3% of GDP, consistent with solvency, a credible MD regime would
require further adjustments of the primary surplus if debt increases,
growth falls, or interest rates rise.
Journal: Applied Economics
Pages: 859-873
Issue: 7
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000056832
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056832
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Handle: RePEc:taf:applec:v:35:y:2003:i:7:p:859-873
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Taggert Brooks
Author-X-Name-First: Taggert
Author-X-Name-Last: Brooks
Title: A new criteria for selecting the optimum lags in Johansen's cointegration technique
Abstract:
Several test statistics like Akaike Information Criterion (AIC) or
Schwarz Bayesian Criterion (SBC) are used to select the order of Vector
Autoregressive Models (VAR) in Johansen's cointegration technique, but not
the appropriate cointegrating vector in case of multiple vectors. In this
note goodness of fit is introduced as a criterion to select the lag length
as well as the appropriate vector simultaneously.
Journal: Applied Economics
Pages: 875-880
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210129419
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210129419
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:875-880
Template-Type: ReDIF-Article 1.0
Author-Name: Raul Ramos
Author-X-Name-First: Raul
Author-X-Name-Last: Ramos
Author-Name: Miquel Clar
Author-X-Name-First: Miquel
Author-X-Name-Last: Clar
Author-Name: Jordi Surinach
Author-X-Name-First: Jordi
Author-X-Name-Last: Surinach
Title: A dynamic analysis of asymmetric shocks in EU manufacturing
Abstract:
Available empirical evidence regarding the degree of symmetry between
European economies in the context of Monetary Unification is not
conclusive. This study offers new empirical evidence concerning this issue
related to the manufacturing sector. Instead of using a static approach as
most empirical studies do, the dynamic evolution of shock symmetry is
analysed using a state-space model. The results show a clear reduction of
asymmetries in terms of demand shocks between 1978 and 1996, with an
increase in terms of supply shocks at the end of the period.
Journal: Applied Economics
Pages: 881-892
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000018178
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018178
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:881-892
Template-Type: ReDIF-Article 1.0
Author-Name: Vasco De
Author-X-Name-First: Vasco
Author-X-Name-Last: De
Author-Name: A. Gabriel
Author-X-Name-First: A.
Author-X-Name-Last: Gabriel
Author-Name: Artur C. B. Da Silva Lopes
Author-X-Name-First: Artur C. B. Da Silva
Author-X-Name-Last: Lopes
Author-Name: Luis Nunes
Author-X-Name-First: Luis
Author-X-Name-Last: Nunes
Title: Instability in cointegration regressions: a brief review with an application to money demand in Portugal
Abstract:
This study addresses some modelling questions related to the possibility
of structural change in models with nonstationary variables. Focusing on
cointegration issues, some methodological aspects are discussed,
attempting to integrate coherently the several steps of the modelling
strategy. These range from unit root to cointegration testing and to
testing for instability in the cointegration vector. An empirical example
with Portuguese data tries to illustrate the usefulness of this approach,
where a simple money demand function is estimated using an
error-correction model (ECM). If a break is explicitly allowed in the
cointegration vector the forecasting performance of the ECM improves.
Journal: Applied Economics
Pages: 893-900
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000018187
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018187
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:893-900
Template-Type: ReDIF-Article 1.0
Author-Name: Tao Wu
Author-X-Name-First: Tao
Author-X-Name-Last: Wu
Title: Stylized facts on nominal term structure and business cycles: an empirical VAR study
Abstract:
This paper examines the importance of various macroeconomic shocks in
explaining the movement of the term structure of nominal bond yields in
the post-war USA, as well as the channels through which such macro-shocks
influence the yield curve, using a structural Vector Autoregressive (VAR)
model. The results show that the monetary-policy and the aggregate-supply
shocks are important determinants of the nominal term structure. Moreover,
the monetary-policy innovations have a large but transitory effect on the
nominal bond yields, primarily by changing the slope of the yield curve,
and the aggregate-supply shocks from private sector have a more persistent
effect on the level of the yield curve, but have little effect on the
slope of the yield curve.
Journal: Applied Economics
Pages: 901-906
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000018204
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018204
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:901-906
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer
Author-X-Name-First: Richard
Author-X-Name-Last: Thalheimer
Author-Name: Mukhtar Ali
Author-X-Name-First: Mukhtar
Author-X-Name-Last: Ali
Title: The demand for casino gaming
Abstract:
In this study an econometric model is developed to examine the
determinants of the demand for casino gaming, specifically the demand for
slot machine wagering at riverboats and racinos. In addition to examining
the effects of traditional demand variables, the effect on wagering of
variables such as location of a wagering facility and of government
restrictions, is examined. A unique measure of accessibility of market
area customers to a facility and to competing facilities was developed.
The demand for wagering at a facility was found to increase as access by
customers in its market area increases and to decrease as access by its
customers to competing riverboats, racinos or Indian casinos increases.
Government restrictions were found to have an adverse effect on wagering
at a riverboat. On the other hand, wagering at a riverboat was found to
increase when such restrictions were imposed on competing riverboats. The
presence of total loss limits and restrictions on boarding times at a
riverboat were found to have reduced wagering by 36% and 35%,
respectively. With respect to traditional demand variables, slot machine
wagering demand was found to be price elastic at the beginning of the
sample period declining to slightly below unit elasticity by the end of
the period. Table games offered at a gaming facility were found to be
substitutes for slot machines. Demand was found to be negatively related
to per capita income at lower income levels and positively related at
higher income levels. The proportion of income wagered was found to be
greater at upper and lower income levels relative to middle income levels.
Demand was found to be positively related to days of operation and number
of slot machines.
Journal: Applied Economics
Pages: 907-918
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000018259
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000018259
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:907-918
Template-Type: ReDIF-Article 1.0
Author-Name: Othman Yong
Author-X-Name-First: Othman
Author-X-Name-Last: Yong
Author-Name: Zaidi Isa
Author-X-Name-First: Zaidi
Author-X-Name-Last: Isa
Title: Initial performance of new issues of shares in Malaysia
Abstract:
This paper presents the levels of under-pricing for new issues in a
developing country, Malaysia, over a more recent period, January
1990-December 1998, than reported in prior studies. Three types of new
issues were examined, namely public issue, offer for sale and combination
or hybrid of offer for sale and public issue. Comparisons of initial
return between types of new issues and between different board of listing
were made. The results of independent t -tests for difference in mean
initial returns indicate that, in general, there are significant
differences in mean initial returns between types of new issues and
between boards of listing. The results of step-wise regression reveal that
on average, only over-subscription ratio contributes significantly to the
initial returns. However, caution should be taken when interpreting the
models formed because the Durbin-Watson rest indicate that some models are
not free from problem of auto-correlation of the residuals.
Journal: Applied Economics
Pages: 919-930
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000020869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000020869
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:919-930
Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Parikh
Author-X-Name-First: Ashok
Author-X-Name-Last: Parikh
Author-Name: Michiel Van Leuvensteijn
Author-X-Name-First: Michiel
Author-X-Name-Last: Van Leuvensteijn
Title: Interregional labour mobility, inequality and wage convergence
Abstract:
The objectives of the paper are to examine the determinants of
interregional labour migration for German regions using the data on gross
flows of labour movements across regions. This is one of the few studies
where data on labour migration is used. There also was a wage convergence
after reunification between regions of East and West Germany and this to a
certain extent provides an explanation for non-linear relationship between
wage differences among regions and migration. As the study distinguishes
the blue-collar and white-collar wage difference between regions,
different relationships between migration and blue and white-collar
workers' wage differences can be assessed. We also test the hypothesis
whether highly skilled workers migrate to the regions where inequality is
greater while less skilled workers tend to migrate to the regions where
inequality is low.
Journal: Applied Economics
Pages: 931-941
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000035827
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000035827
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:931-941
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent
Author-X-Name-First: Robert
Author-X-Name-Last: Brent
Title: The tax implications of cost shifting in cost-benefit analysis in mental health
Abstract:
This paper examines the tax implications of systems of care for
psychiatric patients that rely more on the provision of services in the
community rather than in state hospitals. State governments pay the costs
of patient care in state hospitals, but share costs with the federal
government (via Medicaid) for community based care. Taxes create
distortions as gauged by the marginal cost of public funds (MCF). Since
state and federal governments use different tax mixes, one needs a MCF for
each form of government to evaluate system changes. Separate estimates of
the MCF for each state in the USA are derived. Only for Alaska is cost
shifting welfare improving.
Journal: Applied Economics
Pages: 943-950
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000040966
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000040966
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:943-950
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Harris
Author-X-Name-First: Mark
Author-X-Name-Last: Harris
Author-Name: Simon Feeny
Author-X-Name-First: Simon
Author-X-Name-Last: Feeny
Title: Habit persistence in effective tax rates
Abstract:
This paper uses administrative data from the Australian Tax Office (ATO)
to model the effective tax rates (ETRs) of large Australian corporates.
The extent to which there is any habit persistence in ETRs is also
examined. The results suggest that unobserved entity heterogeneity is
important in explaining ETRs. In terms of observed heterogeneity, entity
size, level of leverage, capital intensity, foreign income and R&D, are
important explanators of ETRs. There is also evidence of a significant
amount of habit persistence, implying that ETRs converge monotonically
towards the statutory rate of corporation tax.
Journal: Applied Economics
Pages: 951-958
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003 684032000050577
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003 684032000050577
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:951-958
Template-Type: ReDIF-Article 1.0
Author-Name: Cemal Berk O˛uzsoy
Author-X-Name-First: Cemal Berk
Author-X-Name-Last: O˛uzsoy
Author-Name: Sibel Guven
Author-X-Name-First: Sibel
Author-X-Name-Last: Guven
Title: Stock returns and the day-of-the-week effect in i-super-˙stanbul Stock Exchange
Abstract:
This study investigates the existence of the day-of-the-week effect on
stock returns in the stanbul Stock Exchange (ISE) for the period between
1988 and 1999. ISE that was established in 1986 is a rapidly growing
emerging market for which there are only a few studies that have been
conducted and reported. Since emerging markets are becoming good
diversification alternatives for international investors, the analysis of
stock return behaviour of ISE will be of interest to all investors,
domestic and foreign. With this purpose, both ISE National 100 Composite
Index, and 30 stocks of ISE for which trade volume is the highest are
analysed. The analysis of ISE National 100 Composite index reveals
strikingly low Tuesday and dominantly high Friday returns, with return
variances at their lowest on Fridays. It is also observed that for most of
the stocks among the 30 highly traded stocks of ISE, maximum return is on
Fridays whereas minimum return is either on Mondays or Tuesdays with
return variances at their highest on Mondays. Moreover for all individual
ISE-30 stocks, the day with the maximum return is one of the days after
the day with the minimum return.
Journal: Applied Economics
Pages: 959-971
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000050586
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000050586
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:959-971
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Mccloughan
Author-X-Name-First: Patrick
Author-X-Name-Last: Mccloughan
Author-Name: Esmaiel Abounoori
Author-X-Name-First: Esmaiel
Author-X-Name-Last: Abounoori
Title: How to estimate market concentration given grouped data
Abstract:
A novel method is proposed of estimating market concentration for the
census case in which firms are grouped into size classes and all that is
known about the firms in each category is their number and aggregate size.
The formula arises as a way of applying an alternative expression for the
concentration ratio based upon the original and first moment size
distributions of firms. The semi-parametric technique, which includes a
method of interval as well as point estimation, is derived, applied and
validated using actual and simulated data. It is anticipated that the
estimator will be of use in competition analysis as well as in academic
research.
Journal: Applied Economics
Pages: 973-983
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003648032000050603
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003648032000050603
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:973-983
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Title: The relative adjustment of wages and prices: direct tests within a multiple-equation system
Abstract:
In order to assess the relative rigidity of the aggregate price level and
the nominal wage rate most researchers have focused on the implied
behaviour of the real wage rate in response to a purely demand
disturbance. The present work examines the explicit behaviour of the two
variables and is therefore able to analyse the variables' short-run
responses within the context of their defined long-run behaviour. While
the paper reports evidence of long-run stability in the real wage rate,
additional evidence is presented which supports both sticky-price and
sticky-wage models. The determining factor is the choice of lag.
Journal: Applied Economics
Pages: 985-997
Issue: 8
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000056779
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056779
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Handle: RePEc:taf:applec:v:35:y:2003:i:8:p:985-997
Template-Type: ReDIF-Article 1.0
Author-Name: John Wildman
Author-X-Name-First: John
Author-X-Name-Last: Wildman
Author-Name: Hugh Gravelle
Author-X-Name-First: Hugh
Author-X-Name-Last: Gravelle
Author-Name: Matthew Sutton
Author-X-Name-First: Matthew
Author-X-Name-Last: Sutton
Title: Health and income inequality: attempting to avoid the aggregation problem
Abstract:
Attempts to test the relative deprivation hypothesis, that income
inequality affects individual health, are subject to the aggregation
problem. Waldmann (Quarterly Journal of Economics 107, 1992) ingeniously
attempts to overcome the difficulty by using income data for the poor and
the share of income accruing to the rich. The study finds that his results
do not hold for a more recent data set and it suggests that his method may
not overcome the aggregation problem.
Journal: Applied Economics
Pages: 999-1004
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000056805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056805
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:999-1004
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Ioannidis
Author-X-Name-First: Christos
Author-X-Name-Last: Ioannidis
Author-Name: Mick Silver
Author-X-Name-First: Mick
Author-X-Name-Last: Silver
Title: Chained, exact and superlative hedonic price changes: estimates from microdata
Abstract:
Scanner data are used to calculate chained, exact (and superlative)
hedonic price indexes for television sets. The data source is available
for a wide range of goods, the application providing an example of how
this method can be more widely applied. The indexes correspond to constant
utility, hedonic cost-of-living indexes. The approach improves on the
existing direct method, which takes its estimates directly from the
coefficients on time dummies in a hedonic regression. It also improves on
the matched model method used by statistical agencies. The differences
between actual price changes and exact hedonic quality-adjusted price
changes are found to be substantial. Base-period and current-period
weighted exact hedonic indexes are similar, thus providing good
approximations to a superlative index. Estimates from the direct, dummy
variable approach were compared to the superlative indexes. The
disparities between the results argue for caution in the use of the
direct, dummy variable approach to estimating quality-adjusted price
changes.
Journal: Applied Economics
Pages: 1005-1014
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000056814
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000056814
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1005-1014
Template-Type: ReDIF-Article 1.0
Author-Name: Hali Edison
Author-X-Name-First: Hali
Author-X-Name-Last: Edison
Author-Name: Torsten Sløk
Author-X-Name-First: Torsten
Author-X-Name-Last: Sløk
Title: The impact from changes in stock market valuations on investment: new economy versus old economy
Abstract:
This paper investigates whether there is a different impact from changes
in 'new' and 'old' economy stock valuations on private investment for
seven OECD economies. A vector autoregressive model is estimated for each
individual country, using quarterly data over the period 1990-2000. It is
found that the impact from changes in valuations of new economy stocks to
investment is roughly the same in North America and in the United Kingdom
as in continental Europe. By contrast, the impact from changes in old
economy stock valuations on investment is, in general, larger in North
America and in the United Kingdom than in continental Europe. Finally, the
results suggest that in continental Europe the impact on investment from
changes in the valuation of new economy stocks is bigger than for old
economy stocks, whereas for North America and the United Kingdom, the
impact is more similar.
Journal: Applied Economics
Pages: 1015-1023
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000066697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000066697
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1015-1023
Template-Type: ReDIF-Article 1.0
Author-Name: John Eakins
Author-X-Name-First: John
Author-X-Name-Last: Eakins
Author-Name: Liam Gallagher
Author-X-Name-First: Liam
Author-X-Name-Last: Gallagher
Title: Dynamic almost ideal demand systems: an empirical analysis of alcohol expenditure in Ireland
Abstract:
This paper presents a dynamic form of the Almost Ideal Demand System
(AIDS). Three versions of the static AIDS model are employed to determine
the preferred long-run equilibrium model and represents the short-run
dynamics by an error correction mechanism. This estimation procedure is
then applied to alcohol expenditure in Ireland. The estimated point
elasticities are consistent with previous studies and a priori
expectations. Beer and spirits are found to be price inelastic in both the
short and long run. While wine is price inelastic in the short run and
price elastic in the long run.
Journal: Applied Economics
Pages: 1025-1036
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000066796
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1025-1036
Template-Type: ReDIF-Article 1.0
Author-Name: Swarnjit Arora
Author-X-Name-First: Swarnjit
Author-X-Name-Last: Arora
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Gour Goswami
Author-X-Name-First: Gour
Author-X-Name-Last: Goswami
Title: Bilateral J-curve between India and her trading partners
Abstract:
Journal: Applied Economics
Pages: 1037-1041
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000102172
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000102172
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1037-1041
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Rodriguez
Author-X-Name-First: Gabriel
Author-X-Name-Last: Rodriguez
Author-Name: Yiagadeesen Samy
Author-X-Name-First: Yiagadeesen
Author-X-Name-Last: Samy
Title: Analysing the effects of labour standards on US export performance. A time series approach with structural change
Abstract:
The empirical effects of different measures of labour standards on the
export performance of the United States are analysed using annual data for
the period 1950-1998, applying a time series approach based on the
structural change literature. Hence, a model with endogenous breaks is
estimated following the methodology proposed by Bai and Perron
(Econometrica, 66, 47-78, 1998). The results show that the labour
standards, represented by the number of hours worked, the rate of
occupational injuries and the unionization rate, are all very important to
explain the behaviour of exports for the United States. In particular, it
is found that low labour standards may both improve or lead to a
deterioration in export performance.
Journal: Applied Economics
Pages: 1043-1051
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000079161
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000079161
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1043-1051
Template-Type: ReDIF-Article 1.0
Author-Name: Carol Newman
Author-X-Name-First: Carol
Author-X-Name-Last: Newman
Author-Name: Maeve Henchion
Author-X-Name-First: Maeve
Author-X-Name-Last: Henchion
Author-Name: Alan Matthews
Author-X-Name-First: Alan
Author-X-Name-Last: Matthews
Title: A double-hurdle model of Irish household expenditure on prepared meals
Abstract:
In this paper, Irish households' expenditure on prepared meals for home
consumption is analysed using the 1987 and 1994 Irish Household Budget
Survey datasets. The aim of the paper is to analyse the factors
influencing Irish households' decisions to purchase prepared meals and how
much to spend on these food items. This is done using the double-hurdle
methodology adjusted for the problems of heteroscedasticity and
non-normality. Income elasticities are estimated for household expenditure
on prepared meals in both years and significant socioeconomic influences
are identified. These socioeconomic factors are assumed to underpin the
tastes and preferences of Irish households, with convenience identified as
a significant preference of many household groups.
Journal: Applied Economics
Pages: 1053-1061
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000079170
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000079170
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1053-1061
Template-Type: ReDIF-Article 1.0
Author-Name: Walter Enders
Author-X-Name-First: Walter
Author-X-Name-Last: Enders
Author-Name: Gary Hoover
Author-X-Name-First: Gary
Author-X-Name-Last: Hoover
Title: The effect of robust growth on poverty: a nonlinear analysis
Abstract:
Previous research has shown that economic growth should help to reduce
the rate of poverty. However, a number of recent studies have found that
the economic expansion of the 1980s had no statistically significant
effect on aggregate poverty. It is shown that both a Threshold regression
and a Fourier approximation provide a better empirical model of poverty
than the standard linear model. It is noteworthy that the nonlinear
specifications show a large and significant effect on poverty of the 1980s
expansion.
Journal: Applied Economics
Pages: 1063-1071
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000080871
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000080871
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1063-1071
Template-Type: ReDIF-Article 1.0
Author-Name: Karen Gerard
Author-X-Name-First: Karen
Author-X-Name-Last: Gerard
Author-Name: Marian Shanahan
Author-X-Name-First: Marian
Author-X-Name-Last: Shanahan
Author-Name: Jordan Louviere
Author-X-Name-First: Jordan
Author-X-Name-Last: Louviere
Title: Using stated preference discrete choice modelling to inform health care decision-making: A pilot study of breast screening participation
Abstract:
This study was an important start to explore the feasibility of applying
stated preference discrete choice modelling (SPDCM) for use in developing
breast screening participation enhancement strategies. It needs to be
followed by further research to establish model validity and authoritative
results. In the meantime a random effects binary probit choice model was
estimated using a main effects with selected 2-way interaction design and
a convenience sample of Australian breast cancer screening participants. A
response rate of 48% was obtained. Clear preferences for different service
configurations were revealed and used to demonstrate how potential
strategies to enhance future participation rates of women placed on
routine recall could be identified. As anticipated accuracy of screening
was the most important attribute of the service to influence the
probability of uptake but others were screening time, travel time,
information about screening benefits and the desire for privacy lending
support to the view that benefit assessment goes beyond health factors. In
summary, the SPDCM approach can be regarded as a judicious approach for
helping decision-makers improve screening participation.
Journal: Applied Economics
Pages: 1073-1085
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000081348
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081348
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1073-1085
Template-Type: ReDIF-Article 1.0
Author-Name: M. Isabel Campos
Author-X-Name-First: M. Isabel
Author-X-Name-Last: Campos
Author-Name: Zenon Jimenez-Ridruejo
Author-X-Name-First: Zenon
Author-X-Name-Last: Jimenez-Ridruejo
Title: Were the peseta exchange rate crises forecastable during target zone period?
Abstract:
During the 1990s several fixed or quasi-fixed exchange rate systems
collapsed. Currency crises have happened in both developed and emerging
countries so it is necessary to forecast and avoid them. However,
financial market crises have been extremely difficult to forecast.
Economic agents' expectations are nonobservable variables that cannot be
ignored in the models. In addition, if it is required to study the
European case during the 1990s, the censored disposition of the exchange
rate cannot be ignored either. A discrete time target zones model is
proposed where these aspects are taken into account. It will be tested in
a peseta/deutsche mark exchange rate framework, from June 1989 to December
1998. The results indicate differences between before and after the shift
in band widths in August 1993.
Journal: Applied Economics
Pages: 1087-1099
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000081320
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081320
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1087-1099
Template-Type: ReDIF-Article 1.0
Author-Name: Helen Robinson
Author-X-Name-First: Helen
Author-X-Name-Last: Robinson
Title: Are you experienced? British evidence on age-earnings profiles
Abstract:
Using UK data, evidence is provided that the widely used quadratic
earnings function may fare badly as indicated by recent work in the USA.
Using data from pooled time series of cross-sections from the General
Household Survey the suitability of the quadratic specification alongside
higher order polynomials is investigated on samples of men and, for the
first time in work of this type, women working full-time. It is found that
the quadratic specification understates earnings growth at low levels of
experience, especially for those workers with few formal qualifications.
The usage of higher order polynomials provides a better fit.
Journal: Applied Economics
Pages: 1101-1115
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000082059
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000082059
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Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Leybourne
Author-X-Name-First: Stephen
Author-X-Name-Last: Leybourne
Author-Name: Paul Newbold
Author-X-Name-First: Paul
Author-X-Name-Last: Newbold
Title: Spurious rejections by cointegration tests induced by structural breaks
Abstract:
The effects on three cointegration tests are examined when the series
analysed are independent integrated processes, each with a structural
break. Although there are differences in detail among the tests, the
results indicate in all cases that, when structural breaks are neglected
in the analysis, spurious rejections, indicating the presence of
cointegration, can occur.
Journal: Applied Economics
Pages: 1117-1121
Issue: 9
Volume: 35
Year: 2003
X-DOI: 10.1080/0203684032000082068
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0203684032000082068
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1117-1121
Template-Type: ReDIF-Article 1.0
Author-Name: Young-Han Kim
Author-X-Name-First: Young-Han
Author-X-Name-Last: Kim
Title: International policy coordination for financial market stability in the Asian economies
Abstract:
Based on the understanding of financial crisis as the self-fulfilling
crisis of speculators belief system, this paper examines the feasibility
of introducing the Tobin tax system to reduce financial volatility in the
Asian foreign exchange markets. The model analysis in this paper provides
the following policy implications. To reduce the motivation to deviate
from the policy coordination, it is required to allow all tax revenues to
collecting countries, especially to Singapore and Hong Kong. Even without
the participation of the major western countries, the start of the tax
policy coordination in the Asian region can have significant signalling
effects to reduce speculative motivation.
Journal: Applied Economics
Pages: 1123-1132
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210161800
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161800
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1123-1132
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Maeso-Fernandez
Author-X-Name-First: Francisco
Author-X-Name-Last: Maeso-Fernandez
Title: A time series approach to g convergence
Abstract:
This paper applies time series analysis to study how the gap between a
number of countries and the USA evolves through time. As other authors, it
is found that time series analysis provides a better insight into the
concept of convergence than the cross sectional one. The econometric
results show that the stochastic behaviour of the output disparity varies
considerably: neither the steady-state equilibrium nor the speed of
convergence are unique and constant across countries and time. In general,
there is catching up for European countries, convergence for East and
South Asian countries, and neither of them for Latin American countries.
Journal: Applied Economics
Pages: 1133-1146
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000026584
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000026584
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1133-1146
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Anthony Rezitis
Author-X-Name-First: Anthony
Author-X-Name-Last: Rezitis
Title: An examination of Okun's law: evidence from regional areas in Greece
Abstract:
This paper estimates Okun's coefficient for certain regional areas in
Greece over the period 1960-1997. Through the Hodrick-Prescott filtering
and the band-pass filtering the empirical analysis shows that that the
coefficients do not exhibit substantial interregional differences, except
for the cases of Epirus and North Aegean Islands. In these two cases, the
estimates are larger than the regional average under both detrending
methodologies. The empirical findings also show that Okun's relationship
undergoes a structural change in 1981. After this break, unemployment
becomes less responsive to output changes in all regional areas.
Journal: Applied Economics
Pages: 1147-1151
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000066787
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000066787
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1147-1151
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Jowett
Author-X-Name-First: Matthew
Author-X-Name-Last: Jowett
Title: Do informal risk sharing networks crowd out public voluntary health insurance? Evidence from Vietnam
Abstract:
Many governments in low-income countries have promoted voluntary health
insurance schemes in recent years, with the principal aim of improving
access to services amongst those working in the informal economy. Few
attempts to understand demand for such schemes exist, particularly in
light of the importance of informal social security arrangements for many
households. A model of demand for health insurance is developed reflecting
this context, and estimated using data from Vietnam. The results show that
informal financial networks may crowd out government promoted health
insurance. Implications for theory and policy are discussed.
Journal: Applied Economics
Pages: 1153-1161
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000079152
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000079152
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1153-1161
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Zuehlke
Author-X-Name-First: Thomas
Author-X-Name-Last: Zuehlke
Title: Estimation of a Tobit model with unknown censoring threshold
Abstract:
Conventional wisdom suggests that only the estimated intercept is
affected by imposition of a zero censoring threshold on a Tobit model.
This is true for Heckman-Lee estimation. For maximum likelihood (ML)
estimation, however, it is only true if the censoring threshold is known
and is subtracted from the dependent variable. Failure to properly
transform the dependent variable prior to ML estimation of a zero
threshold Tobit model will generally bias the coefficient estimates. A
long neglected topic is ML estimation of a Tobit model with common, but
unknown, censoring threshold. This paper shows that the ML estimator of
the censoring threshold is the minimum order statistic from the observed
subsample, and that existing software for estimation of a zero-threshold
Tobit model is easily adapted to include estimation of the censoring
threshold.
Journal: Applied Economics
Pages: 1163-1169
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000081339
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081339
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1163-1169
Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Augier
Author-X-Name-First: Patricia
Author-X-Name-Last: Augier
Author-Name: Michael Gasiorek
Author-X-Name-First: Michael
Author-X-Name-Last: Gasiorek
Title: The welfare implications of trade liberalization between the Southern Mediterranean and the EU
Abstract:
The impact on the Southern Mediterranean Countries (SMC) of the current
process of trade liberalization with the European Union is explored. The
methodology is that of computable general equilibrium modelling under
imperfect competition and the model includes ten countries and 11 sectors.
This allows for both a cross-country and cross-sectoral analysis of the
results. The experiments considered are the full liberalization of
tariffs, as well as changes in market access and trade-induced changes in
productivity. A key feature of the paper is that the phased introduction
of tariff reductions is allowed for as explicitly envisaged in the
Agreements. The results show that the process of liberalization may have a
substantial, though non-monotonic, impact on the SMC economies in terms of
both changes in production and through this on welfare. The welfare impact
is potentially very high in particular for the high tariff economies. The
sources of the welfare gain tend to derive from perfectly competitive
explanations of trade for the high tariff economies, and from imperfectly
competitive explanations of trade for the low tariff economies.
Journal: Applied Economics
Pages: 1171-1190
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000081311
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081311
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1171-1190
Template-Type: ReDIF-Article 1.0
Author-Name: Q. Weninger
Author-X-Name-First: Q.
Author-X-Name-Last: Weninger
Author-Name: I. E. Strand
Author-X-Name-First: I. E.
Author-X-Name-Last: Strand
Title: An empirical analysis of production distortions in the mid-Atlantic surf clam and ocean quahog fishery
Abstract:
This paper presents empirical evidence of production distortions under
controlled access management in the Mid-Atlantic surf clam and ocean
quahog fishery. Results indicate that vessels harvested multiple clam
species even though the harvest technology exhibits diseconomies of scope.
Vessels also operated in a region of the production surface where the
marginal product of vessel capital services was negative. These
distortions are explained by perverse regulations which restricted vessel
capital replacement and severely limited fishing times.
Journal: Applied Economics
Pages: 1191-1197
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000086073
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000086073
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1191-1197
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Cohn
Author-X-Name-First: Richard
Author-X-Name-Last: Cohn
Author-Name: Bharat Kolluri
Author-X-Name-First: Bharat
Author-X-Name-Last: Kolluri
Title: Determinants of household saving in the G-7 countries: recent evidence
Abstract:
This paper employs data from the last four decades to analyse major
determinants of household saving for the Group of Seven (G-7) nations.
Particular attention is paid to the effects of interest rates, government
saving, and social security contributions. Regression analysis is used to
control for the effects of both the level and changes in income per capita
and inflation.
Journal: Applied Economics
Pages: 1199-1208
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090645
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090645
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1199-1208
Template-Type: ReDIF-Article 1.0
Author-Name: Armando Barrientos
Author-X-Name-First: Armando
Author-X-Name-Last: Barrientos
Title: The labour market and economic risk: 'friend' or 'foe'?
Abstract:
This paper examines the twofold role of the labour market in household
economic risk management: as a source of household consumption risk, and
as an instrument for insuring consumption against contingencies. It
outlines a framework for analysing this twofold role of the labour market,
and uses data from the British Household Panel Survey 1991-1996 to explore
this empirically. It identifies the relative importance of the labour
market, and other factors, in producing changes in the financial situation
of individuals. It also implements 'full insurance' tests of whether
unemployment and other external shocks to the household are correlated
with consumption growth. It concludes that labour market factors are a
dominant source of change in individuals financial situation, with a
predominantly positive effect on the financial situation of the better
off, and a predominantly negative impact on the financial situation of the
less well off. It also finds that households are unable to fully insure
their consumption against unemployment, and that as a result labour market
factors pose a significant economic risk.
Journal: Applied Economics
Pages: 1209-1217
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090672
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090672
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1209-1217
Template-Type: ReDIF-Article 1.0
Author-Name: Samarjit Das
Author-X-Name-First: Samarjit
Author-X-Name-Last: Das
Title: Modelling money, price and output in India: a vector autoregressive and moving average (VARMA) approach
Abstract:
The present study has two purposes. First, the study examines the most
substantive and debatable question: Is there any long-run relationship
among money, price and output? It has been found by applying different
tests of cointegration that there is no long-run relationship among these
three variables in cointegration sense. Second, having ascertained that
the variables under study are not cointegrated, an attempt is made to
explore the short-run relationship among money, price and output
exploiting the characteristics of the Vector Autoregressive and Moving
Average (VARMA) model. Sub-set concept has been used to identify the
best-fitted VARMA model. The paper concludes the following: (i) both money
and price affect each other and there exists bi-directional causality;
(ii) output affects price and there is also feedback between price and
output; and (iii) money unidirectionally affects output. Various
consequences of cointegration on parameter estimates of pure VAR/VARMA in
difference have been discussed. Here it may be mentioned that pure
VAR/VARMA in differences is not misspecified, as it could have been
otherwise in the case where variables are cointegrated. However, as VARMA
is more parsimonious than VAR, the VARMA model has been considered here.
Attention has been paid regarding the proper transformations of the
variables.
Journal: Applied Economics
Pages: 1219-1225
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090726
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090726
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1219-1225
Template-Type: ReDIF-Article 1.0
Author-Name: Jenny Williams
Author-X-Name-First: Jenny
Author-X-Name-Last: Williams
Author-Name: Lisa Powell
Author-X-Name-First: Lisa
Author-X-Name-Last: Powell
Author-Name: Henry Wechsler
Author-X-Name-First: Henry
Author-X-Name-Last: Wechsler
Title: Does alcohol consumption reduce human capital accumulation? Evidence from the College Alcohol Study
Abstract:
It is often conjectured that a significant cost of youthful drinking is
the future labour market consequences of having accumulated a lower stock
of human capital. While several studies have investigated the effect of
youthful drinking on the quantity of human capital stock accumulated,
measured by years of education completed or high-school graduation, this
paper investigates the effect of alcohol consumption on the quality of
human capital stock accumulated as measured by college students GPA. Using
data from the Harvard School of Public Health's College Alcohol Study, the
indirect effect of the quantity of alcohol consumed on GPA is estimated
through hours spent studying as well as the direct effect. Results show
that the net total effect of alcohol consumption on GPA is negative for
the sample of college students, and that the main effect is via a
reduction in the hours spent studying. This finding confirms that high
levels of alcohol consumption have an overall negative consequence for
academic achievement, and hence future labour market outcomes.
Journal: Applied Economics
Pages: 1227-1239
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090735
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090735
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1227-1239
Template-Type: ReDIF-Article 1.0
Author-Name: Donna Brown
Author-X-Name-First: Donna
Author-X-Name-Last: Brown
Author-Name: Steven McIntosh
Author-X-Name-First: Steven
Author-X-Name-Last: McIntosh
Title: Job satisfaction in the low wage service sector
Abstract:
The stylized facts associated with workers satisfaction are tested using
a distinctive data set. Using principal components analysis five distinct
measures of workers satisfaction, and the factors that determine each one
are examined. The data set, covering three low-wage service sectors,
enables control for workplace characteristics to be made. It is shown that
characteristics previously identified as important by the job satisfaction
literature, in fact have differing effects according to the type of
satisfaction being considered. Then is examined which of the satisfaction
components has the greatest impact on overall satisfaction. Satisfaction
with short-term rewards and long-term prospects are found to be far more
influential in determining overall satisfaction, than contentment with
social relationships or work intensity.
Journal: Applied Economics
Pages: 1241-1254
Issue: 10
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210150875
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210150875
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Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1241-1254
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Sibbald
Author-X-Name-First: Alexander
Author-X-Name-Last: Sibbald
Author-Name: Lynn McAlevey
Author-X-Name-First: Lynn
Author-X-Name-Last: McAlevey
Title: Examination of economies of scale in credit unions: a New Zealand study
Abstract:
Recent government pressure and aspirations within the industry itself to
improve financial stability, have seen credit unions pursue economies of
scale to achieve this objective. This presented an opportunity to test the
validity of this strategy. However, this study is uncommon, as it utilized
the credit union population as the unit of analysis, rather than a sample,
prevalent in other research. As a consequence this overcomes difficulties
associated with multiple testings, and other statistical problems present
in some other previous studies. By drawing upon two measures of
operational efficiency, viz. operating costs to income and operating costs
to total assets, inconclusive evidence of scale economies was found. While
clear efficiency improvement occurred in moving from small to medium sized
organisations, less compelling was the evidence of economies of scale in
larger credit unions. Although the article followed a conventional
cross-sectional methodology by examining performance at a moment in time,
the study also adopted a longitudinal case study approach, by examining
over time the efficiency of a large credit union. Finally, the measure
used, inclusion or exclusion of outliers, and the operational efficiency
ratio chosen, all effect the outcome, and either showed evidence of
economies or diseconomies, of scale.
Journal: Applied Economics
Pages: 1255-1264
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840210148012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210148012
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1255-1264
Template-Type: ReDIF-Article 1.0
Author-Name: Bijou Yang
Author-X-Name-First: Bijou
Author-X-Name-Last: Yang
Author-Name: Philip Lo
Author-X-Name-First: Philip
Author-X-Name-Last: Lo
Author-Name: David Lester
Author-X-Name-First: David
Author-X-Name-Last: Lester
Title: Purchasing textbooks online
Abstract:
In a sample of 72 undergraduate students at a university, purchasing
textbooks online was predicted by possession of computer/Internet skills,
having a retentive attitude towards money and dissatisfaction with the
university bookstore.
Journal: Applied Economics
Pages: 1265-1269
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090681
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090681
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1265-1269
Template-Type: ReDIF-Article 1.0
Author-Name: A. Nikolaou
Author-X-Name-First: A.
Author-X-Name-Last: Nikolaou
Author-Name: I. Theodossiou
Author-X-Name-First: I.
Author-X-Name-Last: Theodossiou
Title: Living in unemployment or who experiences a high unemployment burden?
Abstract:
The paper examines the distribution of unemployment experience in Britain
within the framework of the Han and Hausman semi-parametric estimator,
which has the advantage of circumventing problems associated with
individual heterogeneity arising from unobserved individual
characteristics. The results imply that the unemployment burden is
unequally distributed among the working population. Males and females bear
an unequal unemployment burden. The study casts light on the
characteristics of those individuals who are most likely to experience a
high unemployment burden.
Journal: Applied Economics
Pages: 1271-1276
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/003684032000090690
File-URL: http://www.tandfonline.com/doi/abs/10.1080/003684032000090690
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1271-1276
Template-Type: ReDIF-Article 1.0
Author-Name: Margaret Giles
Author-X-Name-First: Margaret
Author-X-Name-Last: Giles
Title: Correcting for selectivity bias in the estimation of road crash costs
Abstract:
Police road crash data comprise a non-random sample of the true
population of road crashes, the bias being due to the existence of crashes
that are not notified to the Police. Heckman viewed similar problems as
'omitted variables' problems in that the exclusion of some observations in
a systematic manner (so-called selectivity bias) has inadvertently
introduced the need for an additional regressor in least squares
procedures. In the case of Police road crash data, selectivity bias arises
from factors affecting the notification of crashes to the Police, such as
the number of vehicles in the crash and the type and location of the
crash. Using Heckman's methodology for correcting for this selectivity
bias, Police road crash data for Western Australia are reconciled with
total road crash data in the estimation of the property damage costs of
road crashes.
Journal: Applied Economics
Pages: 1291-1301
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090717
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090717
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1291-1301
Template-Type: ReDIF-Article 1.0
Author-Name: Stefka Slavova
Author-X-Name-First: Stefka
Author-X-Name-Last: Slavova
Title: Money demand during hyperinflation and stabilization: Bulgaria, 1991-2000
Abstract:
The demand for money in Bulgaria is estimated over a ten-year period
(1991-2000) of high inflation and inflation uncertainty. The paper
distinguishes between three well-defined sub-periods: high, variable, but
not systematically accelerating inflation from 1991 until April 1996; the
near-hyperinflation period from May 1996 to February 1997; and the
subsequent stabilization after the adoption of a currency board. The
empirical analysis utilizes a standard methodology of cointegration and
error correction. The functional determinants of the demand for money
change during the different sub-periods. During the hyperinflation
episode, Cagan's model is employed.
Journal: Applied Economics
Pages: 1303-1316
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/003684032000095398
File-URL: http://www.tandfonline.com/doi/abs/10.1080/003684032000095398
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1303-1316
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dietrich
Author-X-Name-First: Michael
Author-X-Name-Last: Dietrich
Title: The importance of management and transaction costs for large UK firms
Abstract:
This article develops an approach to the firm using the principle that
any organization is an amalgam of two production functions: a control
function and a real function. The resulting non-linear regression equation
allows estimation of model parameters that can be used to calculate
firm-specific production and transaction costs. The paper uses a sample of
large UK firms for the four years 1980, 1986, 1992 and 1997. The parameter
and cost estimates appear intuitively plausible given developments in
competitive conditions and environmental uncertainties. Broadly speaking
the results support the view that transaction cost economizing is a
primary determinant of improved firm performance. This result is
particularly apparent when monopoly power and the positive dynamic
advantages of firm slack are identified.
Journal: Applied Economics
Pages: 1317-1329
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000095406
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095406
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1317-1329
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick McCarthy
Author-X-Name-First: Patrick
Author-X-Name-Last: McCarthy
Title: Alcohol-related crashes and alcohol availability in grass-roots communities
Abstract:
This paper employs a unique panel data from 111 small non-metropolitan
incorporated cities in California during a 108 month period from January
1981 to December 1989 in order to analyse the effect of alcohol
availability on highway safety. Negative binomial regression models are
estimated which include alcohol licences per square mile as a measure of
alcohol availability. Theoretically, the sign of the alcohol licence
density is indeterminate as it reflects a trade-off of its effect on
traffic exposure and on the time price alcohol. Among the findings,
increases in the density of general alcohol licences for off-site
(on-site) alcohol consumption are beneficial (detrimental) to highway
safety whereas increasing the density of beer/wine licences have
non-uniform effects. Additional findings important to municipal
policymakers are that DUI arrests and increasing the price of alcohol
reduce alcohol-related crashes.
Journal: Applied Economics
Pages: 1331-1338
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000095929
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095929
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1331-1338
Template-Type: ReDIF-Article 1.0
Author-Name: Niek Nahuis
Author-X-Name-First: Niek
Author-X-Name-Last: Nahuis
Title: An alternative demand indicator: the 'non-accelerating inflation rate of capacity utilization'
Abstract:
This article examines the usefulness of the NAIRCU, the 'non-accelerating
inflation rate of capacity utilization' as a demand indicator of inflation
for eight European countries. So far the NAIRCU has been estimated for the
USA only, where it serves as a useful indicator for inflation. In most
European countries, deviations from the equilibrium level of capacity
utilization influence inflation significantly. Further, the results not
only indicate that in more recent periods the NAIRCU has shifted upward,
indicating higher efficiency of the production process, but also that
confidence intervals have increased over time reducing the usefulness of
the NAIRCU somewhat.
Journal: Applied Economics
Pages: 1339-1344
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000095947
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095947
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1339-1344
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Bailey
Author-X-Name-First: Mark
Author-X-Name-Last: Bailey
Title: The labour market participation of Northern Ireland University Students
Abstract:
This paper seeks to examine what factors are associated with student
labour force participation in Northern Ireland in both term-time and
vacation making use of Quarterly Labour Force Survey data for the period
March 1998-February 1999. The results suggest female students are more
likely to work than male students, mature students are less likely to work
than non-mature students, Roman Catholic students are less likely to work
than non-Roman Catholic students, students living at home are more likely
to work than student living away from home and an increase in the actual
or predicted wage increases the probability of labour force participation.
The author suggests that some of these results are due to the particular
nature of the Northern Ireland socio-economic situation while others are
likely to be true for the rest of the United Kingdom.
Journal: Applied Economics
Pages: 1345-1350
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000100328
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100328
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1345-1350
Template-Type: ReDIF-Article 1.0
Author-Name: Tanweer Akram
Author-X-Name-First: Tanweer
Author-X-Name-Last: Akram
Title: The international foreign aid regime: who gets foreign aid and how much?
Abstract:
This paper analyses the data on international foreign aid. It examines
the basic data on who gets foreign aid, how much, how aid dependent are
the recipient countries, and how the international foreign aid regime has
evolved. It is argued that the pattern of the flow of foreign aid suggests
that aid provided has little relationship to human needs in developing and
transitional countries.
Journal: Applied Economics
Pages: 1351-1356
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000100337
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100337
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1351-1356
Template-Type: ReDIF-Article 1.0
Author-Name: Stuart Fraser
Author-X-Name-First: Stuart
Author-X-Name-Last: Fraser
Author-Name: David Paton
Author-X-Name-First: David
Author-X-Name-Last: Paton
Title: Does advertising increase labour supply? Time series evidence from the UK
Abstract:
Wages in industrialized countries have risen considerably during the last
50 years, whereas hours worked, for manual workers at least, have
decreased only marginally. In Europe, one policy response has been to
attempt to protect workers from pressure to work long hours by placing
legal restrictions on the amount of hours that may be worked each week.
This paper examines the possibility that, in fact, observed hours may be
the result of a desire of workers to work longer due to a shift in their
preferences from leisure to increased consumption, caused by the huge
increase in mass media advertising. A cointegrating VAR framework is used
to test this hypothesis on UK time series data for both males and females
from 1952 to 1997. Advertising is shown to be positively associated with
hours worked for both male and female series. Causality tests indicate
unidirectional causality, for males and females, from advertising to hours
worked. These results suggest that the European policy response is more
likely to restrict employee rather than employer discretion over hours.
Journal: Applied Economics
Pages: 1357-1368
Issue: 11
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000100346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100346
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Handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1357-1368
Template-Type: ReDIF-Article 1.0
Author-Name: Christis Tombazos
Author-X-Name-First: Christis
Author-X-Name-Last: Tombazos
Title: New light on the 'impressionistic view' of the balancing item in Australia's balance of payments accounts
Abstract:
Recently, Fausten and Brooks offered (what they refer to as) an
'impressionistic view' of the temporal evolution of Australia's balancing
item, which is a measure of the accuracy of the balance of payments
accounts. They claim that the balancing item 'has been increasing in
magnitude and volatility, violating with increasing frequency
internationally agreed acceptability criteria for smallness. In the
present paper it is shown that Fausten and Brooks results derive from data
that incorporates excessively a dynamically asymmetric concentration of
revisions and is therefore unsuitable for statistical analysis. This paper
develops, and empirically evaluates, a model of the process of revisions
of balance of payments data. This model illustrates that dynamically
inconsistent time series of the balancing item, such as that employed by
Fausten and Brooks, are bound to generate an artificial impression that it
follows an 'explosive' time trend. Subsequently, it is illustrated that
when alternative, dynamically consistent editions of the balancing item
data for the same period as that examined by Fausten and Brooks are
employed, their results are reversed. Indeed, the findings here contradict
diametrically the conclusions of these authors by suggesting that the
decline in the frequency of balancing item 'violations' observed in the
latter portion of the relevant time period is unparalleled in the history
of the balance of payments accounts.
Journal: Applied Economics
Pages: 1369-1378
Issue: 12
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000129354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000129354
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Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1369-1378
Template-Type: ReDIF-Article 1.0
Author-Name: Venus Khim-Sen Liew
Author-X-Name-First: Venus Khim-Sen
Author-X-Name-Last: Liew
Author-Name: Terence Tai-Leung Chong
Author-X-Name-First: Terence Tai-Leung
Author-X-Name-Last: Chong
Author-Name: Kian-Ping Lim
Author-X-Name-First: Kian-Ping
Author-X-Name-Last: Lim
Title: The inadequacy of linear autoregressive model for real exchange rates: empirical evidence from Asian economies
Abstract:
Utilizing the formal linearity test of Luukkonen, Saikkonen and
Terasvirta (Biometrika, 75, 491-499, 1998) as diagnostic tool, the
empirical finding suggests that the linear autoregressive (AR) model is
inadequate in describing the real exchange rates behaviour of 11 Asian
economies. It is noted that the conventional battery of diagnostic tests
is capable of identifying the inadequacy of the linear model in only three
of these series. Moreover, the linearity nature of this behaviour has been
formally rejected in favour of the non-linear smooth transition
autoregressive (STAR) model. The finding of non-linearity in the data
generating process of these real exchange rates warrants that the use of
linear framework in empirical modelling and statistical testing procedures
in the field of exchange rates may lead to an inappropriate policy
conclusions.
Journal: Applied Economics
Pages: 1387-1392
Issue: 12
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000129750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000129750
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Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1387-1392
Template-Type: ReDIF-Article 1.0
Author-Name: Kerim Peren Arin
Author-X-Name-First: Kerim Peren
Author-X-Name-Last: Arin
Author-Name: Cagla Okten
Author-X-Name-First: Cagla
Author-X-Name-Last: Okten
Title: The determinants of privatization prices: evidence from Turkey
Abstract:
This paper analyses the determinants of privatization prices in a
multi-industry study using a sample of 68 recently privatized firms from
Turkey. Results show that revenue and market characteristics are
significant determinants of privatization prices while current cost and
profit indicators are not. It is argued that potential buyers regard these
state firms as inefficient, therefore do not take into consideration their
current costs and profits in determining their value. When the dependent
variable is altered by dividing the firm's privatization price by the
firm's sales (revenues), it is found that sales-adjusted privatization
prices are responsive to firms profit margins. However, this result does
not hold when the sample is restricted to a single industry. Profit
margins along with other profitability and firm efficiency measures are no
longer significant determinants of sales-adjusted privatization prices in
the cement industry analysis. Unexploited production opportunities
measured by capacity utilization ratios, and complete private ownership
resume a more important role.
Journal: Applied Economics
Pages: 1393-1404
Issue: 12
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000100391
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100391
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Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1393-1404
Template-Type: ReDIF-Article 1.0
Author-Name: Kivilcim Metin Ozcan
Author-X-Name-First: Kivilcim Metin
Author-X-Name-Last: Ozcan
Author-Name: Asli Gunay
Author-X-Name-First: Asli
Author-X-Name-Last: Gunay
Author-Name: Seda Ertac
Author-X-Name-First: Seda
Author-X-Name-Last: Ertac
Title: Determinants of private savings behaviour in Turkey
Abstract:
This study investigates the effects on private saving rates of a number
of policy and non-policy variables. The analysis covers the period
1968-1994. The empirical private saving model for Turkey is estimated. The
findings support the hypothesis that private saving rates have strong
inertia. The evidence indicates that government saving does not tend to
crowd out private savings and the Ricardian equivalence does not hold
strictly. Income level has a positive impact on private saving rate, and
growth rate of income is not statistically significant. From a policy
point of view, financial depth and development measures in Turkey suggest
that countries with deeper financial systems tend to have higher private
saving rates. Private credit and real interest rates try to capture the
severity of the borrowing constraints and the degree of financial
repression for Turkey. Moreover, the negative impact of life expectancy
rate lends support to the life-cycle hypothesis. The precautionary motive
for saving is supported by the findings that inflation captures the degree
of macroeconomic volatility and has a positive impact on private saving in
Turkey.
Journal: Applied Economics
Pages: 1405-1416
Issue: 12
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000100373
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100373
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Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1405-1416
Template-Type: ReDIF-Article 1.0
Author-Name: Zhongmin Wu
Author-X-Name-First: Zhongmin
Author-X-Name-Last: Wu
Title: The persistence of regional unemployment: evidence from China
Abstract:
The purpose of this paper is to examine the persistence of regional
unemployment and to explore the sources of this persistence. Evidence from
China suggests three empirical findings. First, provincial relative
unemployment is more persistent than aggregate unemployment. Second, youth
unemployment is less persistent than total unemployment. Third, although
the western region has the highest provincial unemployment rate, it has
the lowest persistence of regional unemployment. To explore the sources of
this unemployment persistence, a panel data method has been developed
based on the Barro Approach and Edwards work. The higher the share of
industry output by state sector and collective sector, the more the
regional unemployment persistence. The private sector is the main
employment destination for jobless now and has acted to reduce
unemployment persistence.
Journal: Applied Economics
Pages: 1417-1421
Issue: 12
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000100364
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100364
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Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1417-1421
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Fernandez-Serrano
Author-X-Name-First: Jose
Author-X-Name-Last: Fernandez-Serrano
Author-Name: Simon Sosvilla-Rivero
Author-X-Name-First: Simon
Author-X-Name-Last: Sosvilla-Rivero
Title: Modelling the linkages between US and Latin American stock markets
Abstract:
This paper examines the linkages between US and Latin American stock
markets during the 1995-2002 period using recently developed cointegration
techniques that allow for structural shifts in the long-run relationship.
Results suggest that when conventional cointegration tests are applied, a
long-run relationship is found only in the cases of Brazil and Mexico for
the Dow Jones (DJ) index, and in the case of Brazil for the Standard and
Poor's 500 (SP500) index. In contrast, if the possibility of structural
breaks is introduced, strong evidence is found in favour of such a
relationship between the Argentine, Chilean and Venezuelan indices and the
DJ index after the 1998 financial turmoil, and between the Brazilian and
Mexican indices and the DJ index before such turbulence, while some
marginal cointegration is detected between the Mexican and DJ indices from
February 1998. Additionally, evidence is found of a cointegrating
relationship between the Argentine, Chilean and Mexican indices and the
SP500 index from August 1998, April 1999 and October 1999, respectively,
and between the Brazilian and the SP500 indices before November 1997, as
well as some marginal cointegration between the Mexican and SP500 indices
before October 1999. The results suggest that the gains from international
diversification for investors with long holding periods is limited.
Journal: Applied Economics
Pages: 1423-1434
Issue: 12
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000100409
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100409
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Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1423-1434
Template-Type: ReDIF-Article 1.0
Author-Name: Gianluigi Giorgioni
Author-X-Name-First: Gianluigi
Author-X-Name-Last: Giorgioni
Author-Name: Ken Holden
Author-X-Name-First: Ken
Author-X-Name-Last: Holden
Title: Ricardian equivalence, expansionary fiscal contraction and the stock market: a VECM approach
Abstract:
The effect of government taxation on future consumption has been
explained in three ways: the Keynesian approach, the Ricardian Equivalence
proposition and the German view of Expansionary Fiscal Contraction (EFC).
This paper reports empirical evidence on the validity of these
explanations by examining the impact of a shock in government taxation
upon private consumption, once the effect of the stock market is removed.
A vector error-correction model is estimated for the USA, Japan, Germany,
France, the UK, Italy and Canada for 1950-1997 and the impulse response
functions of a shock in taxation and in expenditure are examined. The
responses to an increase in government taxation appear to lend support to
the EFC, while the responses to an increase in government expenditure upon
consumption suggest that the reaction of private consumption is more in
line with the traditional Keynesian approach.
Journal: Applied Economics
Pages: 1435-1443
Issue: 12
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000125088
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125088
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Handle: RePEc:taf:applec:v:35:y:2003:i:12:p:1435-1443
Template-Type: ReDIF-Article 1.0
Author-Name: Avik Chakrabarti
Author-X-Name-First: Avik
Author-X-Name-Last: Chakrabarti
Title: Import competition, employment and wage in US manufacturing: new evidence from multivariate panel cointegration analysis
Abstract:
This paper examines whether employment and wages in the US manufacturing
sector exhibit any long-run relationship with import competition. The
results based on a multivariate panel cointegration analysis of
observations on 12 two-digit SIC manufacturing industries over the period
from the third quarter of 1982 to the fourth quarter of 1992 indicate that
US manufacturing employment does not bear a long-run relationship with
import competition but manufacturing wage does. While the long-run
correlation between import price and manufacturing wage is found to be
sector sensitive panel estimation reveals a highly significant negative
correlation between import price and manufacturing wage.
Journal: Applied Economics
Pages: 1445-1449
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000095389
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095389
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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1445-1449
Template-Type: ReDIF-Article 1.0
Author-Name: Phil Goodwin
Author-X-Name-First: Phil
Author-X-Name-Last: Goodwin
Author-Name: Robert Noland
Author-X-Name-First: Robert
Author-X-Name-Last: Noland
Title: Building new roads really does create extra traffic: a response to Prakash et al.
Abstract:
A recent article by Prakash et al. (Applied Economics, 33, 1579-85, 2001)
asserted that induced travel effects do not occur. This paper is
criticized on several grounds. It disregards much of the recent work in
this area that has empirically estimated induced travel relationships. The
models specified are inappropriate for properly addressing this question,
both in their use of road expenditure data (based on a misunderstanding of
how this may relate to traffic growth) and specification of a model that
does not account for other variables that generally have a large effect on
traffic growth (notably population and income growth). The evidence in the
literature is summarized and an analysis of UK road expenditure data shows
that expenditure is not a good measure of actual road capacity that is
built.
Journal: Applied Economics
Pages: 1451-1457
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000089872
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000089872
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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1451-1457
Template-Type: ReDIF-Article 1.0
Author-Name: Norman Keith Womer
Author-X-Name-First: Norman Keith
Author-X-Name-Last: Womer
Author-Name: Homee Shroff
Author-X-Name-First: Homee
Author-X-Name-Last: Shroff
Author-Name: Thomas Gulledge
Author-X-Name-First: Thomas
Author-X-Name-Last: Gulledge
Author-Name: Kingsley Haynes
Author-X-Name-First: Kingsley
Author-X-Name-Last: Haynes
Title: Measuring efficiency with a linear economic model
Abstract:
This paper modifies and interprets Data Envelopment Analysis (DEA) using
a linear economic model. This approach is similar to the cone input/output
and assurance region approaches to DEA, but it is implemented so that the
multipliers are measured in the same units across all linear optimization
problems. This approach allows one to interpret alternatives as profit
maximizing organizations and the DEA multipliers as prices that are
comparable across the alternatives. This is a useful extension of the
assurance region concept, but more important, is that our approach
enhances communication with decision-makers. The improved communication is
illustrated by applying the model to the siting of a long-term health care
facility. This application is interesting because the multiplier bounds
make practical sense, and because the problem has dimensions that
sometimes lead to interpretation problems with the traditional DEA model.
For example, the site characteristics do not result from coordinated
decisions, some sites exhibit zero values for some variables, and the
problem has many variables compared with the number of potential sites.
Problems with these dimensions have, at times, been deemed unsuitable for
DEA, but they are handled without problem by the linear economic model.
Journal: Applied Economics
Pages: 1459-1467
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090636
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Template-Type: ReDIF-Article 1.0
Author-Name: Donald Haurin
Author-X-Name-First: Donald
Author-X-Name-Last: Haurin
Author-Name: Kala Sridhar
Author-X-Name-First: Kala
Author-X-Name-Last: Sridhar
Title: The impact of local unemployment rates on reservation wages and the duration of search for a job.
Abstract:
Evidence about the relationship of local unemployment rates and
individuals' reservation wages and duration of search for a job if
unemployed is sparse and mixed. This study uses US data from the Panel
Study of Income Dynamics (PSID) to test whether relatively high local
unemployment rates reduce the reservation wages of area residents or
increase the duration of search. Labour search theory provides the
grounding for the sample selection corrected simultaneous equations
econometric model. In neither OLS nor 2SLS results is evidence found that
local unemployment rates affect either reservation wages or the duration
of search. These results suggest that policies targeted at alleviating
unemployment should focus on increasing the demand for labour rather than
hope that such policies will be beneficial if pursued in high-unemployment
areas because of their effects on labour force characteristics.
Journal: Applied Economics
Pages: 1469-1476
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000081302
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000081302
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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1469-1476
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Eisenhauer
Author-X-Name-First: Joseph
Author-X-Name-Last: Eisenhauer
Author-Name: Luigi Ventura
Author-X-Name-First: Luigi
Author-X-Name-Last: Ventura
Title: Survey measures of risk aversion and prudence
Abstract:
This paper utilizes a thought experiment conducted by the Bank of Italy
to estimate absolute and relative risk aversion along with absolute and
relative prudence for a broad cross-section of Italian households. Upper
and lower bounds are calculated for each parameter, and comparisons are
made across socio-demographic groups. Evidence is found of decreasing
absolute risk aversion, decreasing absolute prudence, increasing relative
risk aversion, and increasing relative prudence.
Journal: Applied Economics
Pages: 1477-1484
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000151287
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000151287
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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1477-1484
Template-Type: ReDIF-Article 1.0
Author-Name: Pooran Lall
Author-X-Name-First: Pooran
Author-X-Name-Last: Lall
Author-Name: David Norman
Author-X-Name-First: David
Author-X-Name-Last: Norman
Author-Name: Allen Featherstone
Author-X-Name-First: Allen
Author-X-Name-Last: Featherstone
Title: Determinants of US direct foreign investment in the Caribbean
Abstract:
This study evaluates two groups of variables (economic and
structural/locational) associated with US short- and long-run direct
foreign investment (DFI) in the Caribbean over the 1983-1994 period.
Separate generalized least square models for the Caribbean and Latin
America were estimated to determine whether differences existed between
the two regions as to the variables associated with the levels of DFI.
This helped provide insights as to the strategies that should be
maintained or introduced to give the Caribbean a competitive edge in
attracting the limited amounts of US DFI likely to be available for
investment in the Western hemisphere.
Journal: Applied Economics
Pages: 1485-1496
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000100382
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000100382
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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1485-1496
Template-Type: ReDIF-Article 1.0
Author-Name: Yoichi Matsubayashi
Author-X-Name-First: Yoichi
Author-X-Name-Last: Matsubayashi
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: Some international evidence on the stability of aggregate import demand function
Abstract:
This paper empirically analyses the stability of the aggregate import
demand function for G7 countries. The standard cointegration test and a
test developed by Gregory and Hansen are performed. The results of
standard cointegration tests suggest that there is no stable cointegrating
relation between real import, real GDP and relative import price for all
G7 countries. The cointegrating relation is empirically supported for
France and Germany if structural change for cointegrating vector is
explicitly taken into consideration. The cointegrating relation is
empirically rejected for Canada, Italy, Japan, the UK and the USA. Thus,
the stimulation of domestic business conditions will not necessarily link
the quantity of imports for these five countries.
Journal: Applied Economics
Pages: 1497-1504
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000095965
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095965
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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1497-1504
Template-Type: ReDIF-Article 1.0
Author-Name: George Anastassopoulos
Author-X-Name-First: George
Author-X-Name-Last: Anastassopoulos
Title: MNE subsidiaries versus domestic enterprises: an analysis of their ownership and location-specific advantages
Abstract:
This paper compares the ownership advantages of multinational
enterprises' (MNEs) subsidiaries and domestic enterprises (DMEs) in
Greece. Previous studies have tested the hypothesis that
ownership-specific advantages (Oa) are a major source of firm differences.
This study analyses the processed food sector (SIC=20) - the leading
industrial sector in Greece with the highest inward and outward
internationalization degree - using a panel data set of 75 firms and 5
years. The findings of a probabilistic regression analysis indicate that
there are significant differences between the two groups of firms in the
degree of possession of observed ownership advantages. MNE subsidiaries
have higher market shares, use multiplant operations and have higher
advertising and R&D to sales ratios compared to DMEs. DMEs use their
well-established position (knowledge of domestic and regional market
conditions, and size economies) in order to compete effectively with MNE
subsidiaries. It is inferred that pursuit of domestic market development
is an important motivation in such subsidiaries, in an attempt to build on
(rather than substitute for) the strong and distinctive established
product base of Greek food industry companies. By assimilating Greek food
knowledge alongside their own the MNEs developed export-orientation into
their subsidiaries in Greece, which eventually have played a notable role
in the regional market (Balkans).
Journal: Applied Economics
Pages: 1505-1514
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000095956
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095956
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Template-Type: ReDIF-Article 1.0
Author-Name: Keuk-Soo Kim
Author-X-Name-First: Keuk-Soo
Author-X-Name-Last: Kim
Author-Name: W. Douglas McMillin
Author-X-Name-First: W. Douglas
Author-X-Name-Last: McMillin
Title: Estimating the effects of monetary policy shocks: does lag structure matter?
Abstract:
This paper examines the implications of lag structure for estimating the
effects of monetary policy shocks in a VAR. A symmetric lag structure in
which all variables have the same lag length and an asymmetric lag
structure in which the lag length differs across variables but is the same
for a particular variable in each equation of the model are examined. This
is important in light of the fact that the true lag structure is generally
not known. Four commonly used identification schemes are employed to
identify monetary policy shocks. Monte Carlo simulations strongly indicate
that the lag structure of a VAR model does matter when assessing the
quantitative effects of monetary policy shocks. Given the inherent
uncertainty about the true lag structure in practice, it is thus important
that one compare the impulse response functions from both symmetric lag
and asymmetric lag VARs in assessing the effects of monetary policy
shocks.
Journal: Applied Economics
Pages: 1515-1526
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090663
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090663
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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1515-1526
Template-Type: ReDIF-Article 1.0
Author-Name: B. Moazzami
Author-X-Name-First: B.
Author-X-Name-Last: Moazzami
Author-Name: F. J. Anderson
Author-X-Name-First: F. J.
Author-X-Name-Last: Anderson
Title: Long-term trend and short-run dynamics of the Canadian dollar: an error correction modelling approach
Abstract:
Using quarterly data for 1972-2000, the paper examines the long-term and
short-term movements of the US-Canadian exchange rate. It is found that
the standard purchasing power parity condition fails to explain movements
of the Canadian dollar. The explanatory power of the model increases
significantly when resource commodity prices are added to the equation.
Short-term movements in the Canadian dollar are influenced by the interest
rate differential between Canada and the USA.
Journal: Applied Economics
Pages: 1527-1530
Issue: 13
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090627
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090627
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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1527-1530
Template-Type: ReDIF-Article 1.0
Author-Name: Francis Green
Author-X-Name-First: Francis
Author-X-Name-Last: Green
Author-Name: Alan Felstead
Author-X-Name-First: Alan
Author-X-Name-Last: Felstead
Author-Name: Duncan Gallie
Author-X-Name-First: Duncan
Author-X-Name-Last: Gallie
Title: Computers and the changing skill-intensity of jobs
Abstract:
This paper investigates the impact of computer usage at work and other
job features on the changing skills required of workers. It compare skills
utilization in Britain at three data points: 1986, 1992 and 1997, using
proxies for the level of skills actually used in jobs. This study
questions the validity of investigating the facts about, and the sources
of, rising skills by using just educational attainment or occupational
grouping data. This paper finds that: • Job skills have increased,
more quickly for women than for men; these increases are more extensive
than those captured by changes in the occupational class structure.
• The spread of computer usage is very strongly associated with the
process of upskilling, and accounts in part for narrowing of the gender
skills gap; expanded use of quality circles is also linked to upskilling.
• Evidence for any direct role of trade in inducing skills
increases is weak. • Using the qualification held or occupation as
a skills measure can lead to erroneous conclusions as to the origin of
skills changes.
Journal: Applied Economics
Pages: 1561-1576
Issue: 14
Volume: 35
Year: 2003
X-DOI: 10.1081/0003684032000085986
File-URL: http://www.tandfonline.com/doi/abs/10.1081/0003684032000085986
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Template-Type: ReDIF-Article 1.0
Author-Name: Niklas Rudholm
Author-X-Name-First: Niklas
Author-X-Name-Last: Rudholm
Title: Competition and substitutability in the Swedish pharmaceuticals market
Abstract:
Substitution possibilities between brand name pharmaceuticals are
analysed. The analysis is based on data from three different markets; the
prescription drug market for beta-blocking agents, the 'over the counter'
market for purgatives and the hospital market for two pharmaceutical
treatments for gastric ulcers. The results indicate that there exist some
substitution possibilities among the brand name drugs included in the
study.
Journal: Applied Economics
Pages: 1609-1617
Issue: 14
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000125042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125042
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Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1609-1617
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Svensson
Author-X-Name-First: Roger
Author-X-Name-Last: Svensson
Title: Visits to the client when competing for new consulting contracts: sourcing information or influencing the client?
Abstract:
Consulting firms (CFs) sell services on a project basis to many clients
and must therefore continuously tender for new contracts. One frequently
used strategy by CFs is to visit the clients in connection to the tenders.
The reasons to the visits are: (1) to influence the client in his
decision-making (e.g., marketing, bribing); and/or (2) to source
information about the project so that a better proposal can be submitted.
Using a unique database on individual export proposals submitted to
emerging markets, which of these two reasons is the most important is
examined empirically The estimations show that influencing the client
dominates as explanation to the visits. Although it is not possible to
determine whether this influence takes the form of bribing or marketing,
all conditions necessary for bribes to occur are fulfilled.
Journal: Applied Economics
Pages: 1531-1541
Issue: 14
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000125097
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125097
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Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1531-1541
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Author-Name: Neil Manning
Author-X-Name-First: Neil
Author-X-Name-Last: Manning
Title: The power of asymmetric unit root tests under threshold and consistent-threshold estimation
Abstract:
The asymmetric unit root tests of Enders and Granger (Journal of Business
and Economic Statistics, 16, 304-11, 1998) are examined using consistent
threshold estimation and the original two-step procedure. In contrast to
earlier studies, the ability of the tests to jointly reject the unit root
and symmetry hypotheses is examined, thus permitting a fuller analysis of
the tests' properties. Whilst the threshold autoregressive test is found
to have little power in either its consistent or original forms, the
consistent momentum-threshold autoregressive test is found to exhibit high
power against a range of plausible alternatives when using newly derived
critical values.
Journal: Applied Economics
Pages: 1543-1550
Issue: 14
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000125105
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125105
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Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1543-1550
Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Wilson
Author-X-Name-First: Dennis
Author-X-Name-Last: Wilson
Author-Name: Yung-Hsiang Ying
Author-X-Name-First: Yung-Hsiang
Author-X-Name-Last: Ying
Title: Nationality preferences for labour in the international football industry
Abstract:
This paper tests consumer and co-worker nationalistic preferences by
measuring the effect of team nationality composition on fan attendance and
overall team quality using professional football teams in the world's five
largest football leagues. Little evidence is found to support the
hypothesis that fans or co-workers discriminate based upon the player's
nationality. Thus, the under-representation of various nationalities can
be concluded to originate from a club's ownership and/or management. These
results are similar to the racial bias revealed by English club owners as
found by Szymanski and Preston.
Journal: Applied Economics
Pages: 1551-1559
Issue: 14
Volume: 35
Year: 2003
X-DOI: 10.1080/000368403200010048
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368403200010048
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Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1551-1559
Template-Type: ReDIF-Article 1.0
Author-Name: Ian Smith
Author-X-Name-First: Ian
Author-X-Name-Last: Smith
Author-Name: John Sawkins
Author-X-Name-First: John
Author-X-Name-Last: Sawkins
Title: The economics of regional variation in religious attendance
Abstract:
Developments in modelling the demand for religion have identified both
religious human capital and religious market structure as fundamental
determinants of levels of formal religious practice. In this paper, these
theories are confronted with survey data drawn from 163 regions across 16
countries. Although there are clearly political, historical and other
country specific factors that affect levels of participation in organized
religion, estimates from modified logit regression equations demonstrate
the empirical significance at the regional level of variables suggested by
recent innovations in the economics of religious behaviour.
Journal: Applied Economics
Pages: 1577-1588
Issue: 14
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000129363
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000129363
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Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1577-1588
Template-Type: ReDIF-Article 1.0
Author-Name: Ipek Ilkkaracan
Author-X-Name-First: Ipek
Author-X-Name-Last: Ilkkaracan
Author-Name: Raziye Selim
Author-X-Name-First: Raziye
Author-X-Name-Last: Selim
Title: The role of unemployment in wage determination: further evidence on the wage curve from Turkey
Abstract:
This paper presents an empirical estimation of the correlation between
wages and regional unemployment rates in Turkey, more specifically it
explores the role of regional unemployment rates in wage determination.
The analysis builds upon a series of recent empirical studies on the
wage-unemployment relationship, now commonly known as 'the wage curve', a
downward sloping curve in wage-unemployment space. The existing studies
are for most part in advanced market economies, while this paper presents
one of the few attempts at a wage curve analysis within the context of a
developing market economy. A cross-sectional estimation of micro level
individual wage data for the Turkish labour market in 1994, suggest a
statistically significant negative correlation between wages and regional
unemployment rates. Separate regressions for men and women, however, show
a wage curve to exist only in the male labour market. The study also
presents the results on other variables of wage determination such as
returns to schooling, returns to age, job tenure, gender, industrial and
occupational affiliation of the worker, economic sector and union status.
Journal: Applied Economics
Pages: 1589-1598
Issue: 14
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684022000040939
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684022000040939
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Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1589-1598
Template-Type: ReDIF-Article 1.0
Author-Name: William Dimovski
Author-X-Name-First: William
Author-X-Name-Last: Dimovski
Author-Name: Robert Brooks
Author-X-Name-First: Robert
Author-X-Name-Last: Brooks
Title: Financial characteristics of Australian initial public offerings from 1994 to 1999
Abstract:
A variety of financial characteristics of Australian initial public
offerings (IPOs) for the period 1994-1999 are explored. A number of
previous Australian studies have investigated the initial day underpricing
and longer term underperformance of IPOs and this study updates those
papers. This paper partitions the IPO data into no liability/limited
liability; share option/no share option; underwriter option/no underwriter
option and dividend reinvestment/no dividend reinvestment characteristics
to better understand the types of IPOs that list on the Australian Stock
Exchange. The data supports the findings of previous studies in that IPOs
are underpriced at the time of listing and underperform the market in the
first year following their listing.
Journal: Applied Economics
Pages: 1599-1607
Issue: 14
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000126771
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000126771
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Handle: RePEc:taf:applec:v:35:y:2003:i:14:p:1599-1607
Template-Type: ReDIF-Article 1.0
Author-Name: Werner Bonte
Author-X-Name-First: Werner
Author-X-Name-Last: Bonte
Title: Does federally financed business R&D matter for US productivity growth?
Abstract:
This paper investigates the impact of federally financed business R&D on
productivity of the US nonfarm business sector. Results of a cointegration
analysis suggest that a long run relation between productivity and total
(privately and federally financed) R&D capital stock exists. Moreover, the
estimation results do not confirm the finding of previous empirical
studies that the productivity effects of federally financed business R&D
are lower compared with those of privately financed business R&D.
Journal: Applied Economics
Pages: 1619-1625
Issue: 15
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000125079
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125079
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Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1619-1625
Template-Type: ReDIF-Article 1.0
Author-Name: Isabelle Armanville
Author-X-Name-First: Isabelle
Author-X-Name-Last: Armanville
Author-Name: Peter Funk
Author-X-Name-First: Peter
Author-X-Name-Last: Funk
Title: Induced innovation: an empirical test
Abstract:
A method is developed to empirically test the hypothesis of induced
innovation as it has been specified and used in the theoretical
literature. A strong and a weak version of the hypothesis is tested using
sectorial data from the USA, Canada, Germany, France and the UK. The
strong version tests for the exact dependency of the relation between the
change in factor-productivities on the one hand and relative prices and
actual factor-productivities on the other hand. The weak version only
tests for the direction of this dependency. In all countries the weak
hypothesis is accepted in all sectors except in 'electricity, gas, and
water'. The strong hypothesis is accepted in about half of all sectors. It
is rejected only in sectors, in which the degree to which progress is
intentional is low.
Journal: Applied Economics
Pages: 1627-1647
Issue: 15
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000125051
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125051
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Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1627-1647
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Attendance and pricing at sporting events: empirical results from Granger Causality Tests for the Melbourne Cup
Abstract:
This study applies Granger causality tests to examine the relationship
between attendance, admission prices and real income at the Melbourne Cup,
which is Australia's premier horseracing event and one of the world's
leading handicap races. The motivation for the paper is that while market
demand suggests that causation should run from admission price to
attendance, it is equally plausible that sporting authorities could alter
admission prices in response to a change in demand reflected in
attendance. The main findings are that in the short-run there is
unidirectional Granger causality running from income to attendance,
attendance to admission price and income to admission price, while in the
long run both admission price and income Granger cause attendance.
Journal: Applied Economics
Pages: 1649-1657
Issue: 15
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000133223
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000133223
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Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1649-1657
Template-Type: ReDIF-Article 1.0
Author-Name: Orn Bodvarsson
Author-X-Name-First: Orn
Author-X-Name-Last: Bodvarsson
Author-Name: William Luksetich
Author-X-Name-First: William
Author-X-Name-Last: Luksetich
Author-Name: Sherry McDermott
Author-X-Name-First: Sherry
Author-X-Name-Last: McDermott
Title: Why do diners tip: rule-of-thumb or valuation of service?
Abstract:
When diners decide how much to tip, is the decision based on social
convention or on conscientious appraisal of server productivity? Previous
researchers in economics and social psychology are generally inconclusive
on this question. A common finding in the literature is that tip size and
service quality are unrelated, a result usually obtained from OLS
regressions. OLS is only appropriate if service quality is exogenous. It
is argued that service quality is very likely endogenous in any regression
of tip size; good quality encourages good tips, but server expectations of
good tips encourage good quality. This simultaneity is accounted for by
jointly estimating percentage tips and customer rankings of service
quality on a sample of 247 diners in a Central Minnesota restaurant.
Included are explanatory variables consistent with both the social
psychology and economic views of tipping. In contrast to previous studies,
it is found that service quality significantly affects tip size and when
servers expect higher tips, customers rank service quality higher. Also it
is found that patronage frequency and coupon redemption have no effect on
percentage tips, but server gender influences quality significantly. It is
concluded that the results are generally supportive of an economic
hypothesis of tipping.
Journal: Applied Economics
Pages: 1659-1665
Issue: 15
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000126799
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000126799
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Template-Type: ReDIF-Article 1.0
Author-Name: James Love
Author-X-Name-First: James
Author-X-Name-Last: Love
Title: Technology sourcing versus technology exploitation: an analysis of US foreign direct investment flows
Abstract:
The traditional paradigm of foreign direct investment (FDI) suggests that
FDI is undertaken principally to exploit some firm-specific advantage in a
foreign country which provides a locational advantage to the investor.
However, recent theoretical work suggests a model of FDI in which the
motivation is not to exploit existing technological advantages in a
foreign country, but to access such technology and transfer it from the
host economy to the investing multinational corporation via spillover
effects. This paper tests the technology sourcing versus technology
exploiting hypotheses for a panel of sectoral FDI flows between the United
States and major OECD nations over a 15 year period. The research makes
use of Patel and Vega's (Research Policy, 28, 145-55, 1999) taxonomy of
sectors which are likely a priori to exhibit technology sourcing and
exploiting behaviour respectively. While there is evidence that FDI flows
into the United States are attracted to R&D intensive sectors, very little
support is found for the technology sourcing hypothesis either for inward
or outward FDI flows. The results suggest that, in aggregate,
firm-specific 'ownership' effects remain powerful determinants of FDI
flows.
Journal: Applied Economics
Pages: 1667-1678
Issue: 15
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000125060
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000125060
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Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1667-1678
Template-Type: ReDIF-Article 1.0
Author-Name: George Philippidis
Author-X-Name-First: George
Author-X-Name-Last: Philippidis
Author-Name: Lionel Hubbard
Author-X-Name-First: Lionel
Author-X-Name-Last: Hubbard
Title: Modelling hierarchical consumer preferences: an application to global food markets
Abstract:
Journal: Applied Economics
Pages: 1679-1687
Issue: 15
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000128454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000128454
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Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1679-1687
Template-Type: ReDIF-Article 1.0
Author-Name: Danilo Mercurio
Author-X-Name-First: Danilo
Author-X-Name-Last: Mercurio
Author-Name: Costanza Torricelli
Author-X-Name-First: Costanza
Author-X-Name-Last: Torricelli
Title: Estimation and arbitrage opportunities for exchange rate baskets
Abstract:
This paper analyses short-term portfolio investment opportunities in a
capital market where a currency is defined as a currency basket. In line
with the mean-variance hedging approach, a self-financed optimal
investment strategy is determined which minimizes the expected quadratic
cost function. The successful implementation of the speculative strategy
requires a precise estimate of the basket weights, which are possibly
non-constant over time. To this end, an adaptive non-parametric procedure
is suggested which provides satisfactory results both on simulated and
real data. The optimal investment strategy is applied to the case of the
Thai Baht basket whereby the weights are computed by means of the adaptive
estimator. A recursive estimator, a rolling estimator and the Kalman
filter, are implemented and serve as benchmark models. Results are
compared with the literature. The different estimators are evaluated with
profit-based criteria and the performance of the adaptive estimator turns
out to be the best one.
Journal: Applied Economics
Pages: 1689-1698
Issue: 15
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000095938
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000095938
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Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1689-1698
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Pascoe
Author-X-Name-First: Sean
Author-X-Name-Last: Pascoe
Author-Name: Parastoo Hassaszahed
Author-X-Name-First: Parastoo
Author-X-Name-Last: Hassaszahed
Author-Name: Jesper Anderson
Author-X-Name-First: Jesper
Author-X-Name-Last: Anderson
Author-Name: Knud Korsbrekke
Author-X-Name-First: Knud
Author-X-Name-Last: Korsbrekke
Title: Economic versus physical input measures in the analysis of technical efficiency in fisheries
Abstract:
The measurement of technical efficiency requires the estimation of an
appropriate production frontier. This is based on a set of inputs that are
assumed to influence the level of output. Deviations from this frontier
production function are separated into random variation and inefficiency.
However, mis-specification of the production function through the use of
inappropriate input measures may result in a bias in the measures of
inefficiency. In fisheries, production is generally assumed to be a
function of stock size, fishing time and the level of physical inputs
employed. Defining the appropriate levels of physical inputs, however, is
not straightforward, and several alternative measures are available. While
economic measures of capital are more intuitively appealing, physical
measures are generally readily available and hence less costly to collect.
In this study, technical efficiency is measured for three fleet segments
operating in the North Sea using three different gear types. The effects
of using different measures of capital in the production frontier on the
efficiency estimates are examined.
Journal: Applied Economics
Pages: 1699-1710
Issue: 15
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000134574
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000134574
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Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1699-1710
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Jenkins
Author-X-Name-First: Andrew
Author-X-Name-Last: Jenkins
Author-Name: Anna Vignoles
Author-X-Name-First: Anna
Author-X-Name-Last: Vignoles
Author-Name: Alison Wolf
Author-X-Name-First: Alison
Author-X-Name-Last: Wolf
Author-Name: Fernando Galindo-Rueda
Author-X-Name-First: Fernando
Author-X-Name-Last: Galindo-Rueda
Title: The determinants and labour market effects of lifelong learning
Abstract:
Despite the policy importance of lifelong learning, there is very little
hard evidence from the UK on (a) who undertakes lifelong learning and why,
and (b) the economic benefits of lifelong learning. This paper uses a rich
longitudinal panel data set to look at key factors that determine whether
someone undertakes lifelong learning and then models the effect of the
different qualifications acquired via lifelong learning on individuals'
economic outcomes, namely wages and the likelihood of being employed.
Those who left school with O-level qualifications or above were much more
likely to undertake lifelong learning. Undertaking one episode of lifelong
learning also increased the probability of undertaking more lifelong
learning. We found little evidence of positive wage effects from lifelong
learning. However, males who left school with only low-level
qualifications do earn substantially more if they undertake a degree via
lifelong learning. We also found important positive employment effects
from lifelong learning.
Journal: Applied Economics
Pages: 1711-1721
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000155445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000155445
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1711-1721
Template-Type: ReDIF-Article 1.0
Author-Name: James Payne
Author-X-Name-First: James
Author-X-Name-Last: Payne
Title: Post stabilization estimates of money demand in Croatia: error correction model using the bounds testing approach
Abstract:
This paper estimates an error correction model of money demand for
Croatia over the post-stabilization period based on the ARDL bounds
testing procedure. While industrial production is statistically
insignificant for both the M1 and M1A money demand specifications,
interest rates, inflation, and the real effective exchange rate have a
negative and statistically significant impact. The error correction money
demand models appear structurally stable based on the cumulative sum and
cumulative sum of square tests.
Journal: Applied Economics
Pages: 1723-1727
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000152871
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000152871
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1723-1727
Template-Type: ReDIF-Article 1.0
Author-Name: K. K. Gary Wong
Author-X-Name-First: K. K. Gary
Author-X-Name-Last: Wong
Title: Towards a more general approach to testing the time additivity hypothesis
Abstract:
A new procedure is proposed for re-examining the assumption of additivity
of preferences over time which, although untenable, is usually maintained
in intertemporal analyses of consumption and labour supply. The method is
an extension of a famous work by Browning. However, it is more general in
permitting the estimation of intertemporal demand systems, which are
explicit in an unobservable variable (price of utility), but may lack a
closed form representation in terms of observable variables such as prices
and total outlay. It also makes extensive use of duality theory to solve
the endogeneity problem encountered in Browning's study. Applying this
method with an appropriate estimator to the Australian aggregate data, it
is found that the time additivity hypothesis is decisively rejected, which
is consistent with Browning's conclusion.
Journal: Applied Economics
Pages: 1729-1738
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000090654
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000090654
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1729-1738
Template-Type: ReDIF-Article 1.0
Author-Name: Kang Park
Author-X-Name-First: Kang
Author-X-Name-Last: Park
Title: Patterns and strategies of Foreign Direct Investment: the case of Japanese firms
Abstract:
This paper is to study globalization motives and strategies of Japanese
manufacturing industries by analyzing the causes and patterns of foreign
direct investment (FDI) of Japanese manufacturing firms. We use regression
analysis to determine internally driving-out factors and
externally-inducing factors. Japanese FDI strategy has gone through three
different stages; from natural resource-seeking investment in the 1950s
and 1960s to market-expansion investment in the 1970s and 1980s and to a
combination of cost-reducing (low-cost labor-seeking) investment and
market-penetrating investment in the 1990s. Our findings show that
Japanese FDI in Asia and other developing countries tends to be in
labor-intensive sectors where Japanese firms are losing their comparative
advantages at home. The main motive for FDI into these regions is low-cost
resource seeking. On the other hand, Japanese FDI in the US and Europe
tends to be knowledge-intensive sectors where Japanese firms attempt to
internalize transaction and information costs by globalizing its
production. The main motive for FDI into these regions is market-seeking.
Journal: Applied Economics
Pages: 1739-1746
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000155472
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000155472
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1739-1746
Template-Type: ReDIF-Article 1.0
Author-Name: Charlie Weir
Author-X-Name-First: Charlie
Author-X-Name-Last: Weir
Author-Name: David Laing
Author-X-Name-First: David
Author-X-Name-Last: Laing
Title: Ownership structure, board composition and the market for corporate control in the UK: an empirical analysis
Abstract:
This paper analyses the board composition and ownership structures of a
sample of companies that have been acquired and those of a matching
control sample that have not. We find significant governance differences
between acquired firms and the control sample. Firms with the following
characteristics were more likely to be acquired: they had the same person
acting as CEO and chair, a higher proportion of non-executive directors,
larger institutional shareholdings and higher director shareholdings. An
analysis of small firms also found evidence of higher CEO shareholdings.
We also find that treating all take-overs as a single group leads to a
model mis-specification which does not identify the incentive effects of
board and CEO shareholdings present in non-hostile acquisitions. These
results are consistent with two agency-derived hypotheses, financial
incentives and effective monitoring. We also find that targets exhibit
lower growth potential but do not have worse accounting performance.
Journal: Applied Economics
Pages: 1747-1759
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000155454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000155454
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1747-1759
Template-Type: ReDIF-Article 1.0
Author-Name: Atul Dar
Author-X-Name-First: Atul
Author-X-Name-Last: Dar
Author-Name: Sal Amirkhalkhali
Author-X-Name-First: Sal
Author-X-Name-Last: Amirkhalkhali
Title: On the impact of trade openness on growth: further evidence from OECD countries
Abstract:
This study attempts to examine empirically the implications of the degree
of openness for total and individual factor productivity growth in a group
of 19 OECD countries over the last three decades. The study combines both
time series and cross-sectional data. The model employed is a
generalization of the commonly used, growth-accounting model based on the
concept of an aggregate production function in which the rate of economic
growth is a function of capital and labour accumulation and total factor
productivity. It is explicitly assumed that total factor productivity
depends, in turn, upon the rate of export expansion. The model is then
estimated using the random coefficients approach. While results generally
indicate that the relative importance of trade openness on economic growth
varies significantly across countries, they also indicate that the role of
capital and labour accumulation in fostering economic growth varies with
the degree of openness, cross-sectionally as well as across time.
Journal: Applied Economics
Pages: 1761-1766
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000129020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000129020
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1761-1766
Template-Type: ReDIF-Article 1.0
Author-Name: Joel Deichmann
Author-X-Name-First: Joel
Author-X-Name-Last: Deichmann
Author-Name: Socrates Karidis
Author-X-Name-First: Socrates
Author-X-Name-Last: Karidis
Author-Name: Selin Sayek
Author-X-Name-First: Selin
Author-X-Name-Last: Sayek
Title: Foreign direct investment in Turkey: regional determinants
Abstract:
The uneven regional distribution of foreign direct investment (FDI) in
Turkey poses an interesting question from the perspective of multinational
firms (MNFs) and policy-makers alike. This paper focuses on the factors
governing the location decisions of MNFs within Turkey with specific
reference to policy implications. Using a conditional logit model, it is
found that agglomeration, depth of local financial markets, human capital,
and coastal access dominate location decisions for the aggregate sample of
foreign investors in Turkey. This study reveals no evidence that public
investment is successful in attracting MNFs to particular regions. Also
importantly, the location determinants vary dramatically by broad
industrial category, investment composition, and origin-country
characteristics, including income category and region.
Journal: Applied Economics
Pages: 1767-1778
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000126780
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000126780
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1767-1778
Template-Type: ReDIF-Article 1.0
Author-Name: Fragkiskos Filippaios
Author-X-Name-First: Fragkiskos
Author-X-Name-Last: Filippaios
Author-Name: Marina Papanastassiou
Author-X-Name-First: Marina
Author-X-Name-Last: Papanastassiou
Author-Name: Robert Pearce
Author-X-Name-First: Robert
Author-X-Name-Last: Pearce
Title: The evolution of US outward foreign direct investment in the pacific rim: a cross-time and country analysis
Abstract:
The location determinants of US FDI in the Pacific region of the OECD,
i.e. Australia, New Zealand, Japan, and Korea, are analysed for 1982-1997.
The data set allowed two time periods i.e. the 1980s and the 1990s, and
two different subgroups, i.e. Australia and New Zealand, and Japan and
Korea to be distinguished. Statistical evidence indicates a heterogeneous
response of US FDI towards different countries and for different time
periods. Factors such as market size, income level and qualified and
productive labour exert a significant impact on both the timing and the
locational choice of US investors in the region.
Journal: Applied Economics
Pages: 1779-1787
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000154220
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000154220
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1779-1787
Template-Type: ReDIF-Article 1.0
Author-Name: Allan Layton
Author-X-Name-First: Allan
Author-X-Name-Last: Layton
Author-Name: Anirvan Banerji
Author-X-Name-First: Anirvan
Author-X-Name-Last: Banerji
Title: What is a recession?: A reprise
Abstract:
This paper draws its title from a paper written over 35 years ago by
Geoffrey H. Moore (1967). Why the need for a reprise? First, there would
appear currently to be somewhat diverging views as to what properly
constitutes a recession. Second, largely as a result of this, in many
countries other than the US, there does not exist a single, widely
accepted business cycle chronology for the country in question. This paper
will argue that, in addition to output, there are other important aspects
to aggregate economic activity that need to be taken into account in
determining the business cycle, viz., income, sales and employment. As
such, our perspective would seem to be at odds with the apparent position
taken by some other recent commentators on this issue who argue that GDP
is all that is needed to represent a country's business cycle. We will
also argue against using the currently popular 'two negative quarterly
growth rate' rule in dating the onset of a recession.
Journal: Applied Economics
Pages: 1789-1797
Issue: 16
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000152853
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000152853
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Handle: RePEc:taf:applec:v:35:y:2003:i:16:p:1789-1797
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Title: Money and prices: evidence from the G7 countries
Abstract:
This paper examines the exogeneity of money and prices within a money
demand vector error-correction model. The exogeneity of the variables is
central to several 'buffer stock' models. However, the paper makes two
modifications to the traditional approach. The first is to explicitly
acknowledge the importance of the supply of money function by including
the function alongside its demand counterpart. The second is to estimate
the behaviour of the nominal sector and real sector simultaneously.
Overall, the results from the G7 countries suggest that the concerns
raised by 'buffer stock' models are relevant.
Journal: Applied Economics
Pages: 1799-1809
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840310001628053
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628053
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1799-1809
Template-Type: ReDIF-Article 1.0
Author-Name: Djeto Assane
Author-X-Name-First: Djeto
Author-X-Name-Last: Assane
Author-Name: Abbas Grammy
Author-X-Name-First: Abbas
Author-X-Name-Last: Grammy
Title: Institutional framework and economic development: international evidence
Abstract:
This paper examines the effect of 'quality' of the institutional
framework on economic development. Our empirical results support the
hypothesis that 'good' institutions improve efficiency and accelerate
growth. The positive effect of institutional 'quality' is more pronounced
with mutually reinforcing support of economic freedom. Our results also
indicate that 'good' institutions help developing countries grow faster to
achieve conditional convergence. We infer from the results that economic
development requires not only physical and human capital formation, but
also freedom to choose and institutional support.
Journal: Applied Economics
Pages: 1811-1817
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000152862
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000152862
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1811-1817
Template-Type: ReDIF-Article 1.0
Author-Name: Arusha Cooray
Author-X-Name-First: Arusha
Author-X-Name-Last: Cooray
Title: A test of the expectations hypothesis of the term structure of interest rates for Sri Lanka
Abstract:
This paper tests the expectations hypothesis of the term structure of
interest rates for Sri Lanka. The data support the hypothesis that forward
and spot rates are cointegrated suggesting a stochastic trend in the
structure of interest rates. However, the hypothesis that forward rates
are unbiased predictors of future spot rates is rejected.
Journal: Applied Economics
Pages: 1819-1827
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000148524
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000148524
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1819-1827
Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Matallin
Author-X-Name-First: J. C.
Author-X-Name-Last: Matallin
Author-Name: A. Fernandez-Izquierdo
Author-X-Name-First: A.
Author-X-Name-Last: Fernandez-Izquierdo
Title: Passive timing effect in portfolio management
Abstract:
The primary objective of the present study is to analyse the extent of
the passive timing effect in portfolio management. This effect is produced
when a portfolio which is not managed actively shows signs of instability
in its level of systematic risk. By contrast, market timing involves
active management of the portfolio and therefore changes to the level of
systematic risk in order to anticipate market movements in an appropriate
manner. This study proposes a dynamic beta model which incorporates the
effect of passive timing attributable to the accumulated evolution of
weightings for the assets that make up the portfolio. The results
demonstrate the importance of this effect when applying performance and
market timing measures in order to evaluate portfolio results, such as
those of mutual funds.
Journal: Applied Economics
Pages: 1829-1837
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000150404
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000150404
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1829-1837
Template-Type: ReDIF-Article 1.0
Author-Name: M. M. Salinas-Jimenez
Author-X-Name-First: M. M.
Author-X-Name-Last: Salinas-Jimenez
Title: Technological change, efficiency gains and capital accumulation in labour productivity growth and convergence: an application to the Spanish regions
Abstract:
The main objective of this article is to analyse labour productivity
growth and convergence in the Spanish regions between 1965 and 1995,
decomposing total factor productivity gains into technological progress
and efficiency change by means of Malmquist productivity indices. On the
basis of this decomposition, labour productivity growth is broken down
into components attributable to technological change (shifts in the
frontier), efficiency gains (movements toward the frontier) and capital
accumulation (movements along the frontier). The approach followed in this
study is based on work initiated by Fare et al., where a link between the
economic growth and convergence literature and the production frontier
approach was established. Furthermore, in the spirit of Quah's approach,
the evolution of the whole distribution is considered. Thus, the analysis
of the dynamics of the entire distribution of labour productivity and the
factors behind it - technological progress, efficiency gains and capital
accumulation - combine both approaches, yielding new insights into the
process of productivity growth and convergence experienced by the Spanish
regions over the last 30 years.
Journal: Applied Economics
Pages: 1839-1851
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/000368403100016289800
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368403100016289800
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1839-1851
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Bishop
Author-X-Name-First: Paul
Author-X-Name-Last: Bishop
Author-Name: Steven Brand
Author-X-Name-First: Steven
Author-X-Name-Last: Brand
Title: The efficiency of museums: a stochastic frontier production function approach
Abstract:
This article examines the technical efficiency of museums based upon data
derived from a questionnaire survey of South West England. A stochastic
frontier production function is estimated with output measured in terms of
visitor numbers. The Cobb-Douglas function is shown to be the best
representation of the production function. Average levels of efficiency
are estimated to be fairly low at 45.5% with wide variations across
museums. The results indicate that high levels of public funding and
voluntary activity have a significantly negative impact on technical
efficiency. It is argued that further research is needed to develop more
sophisticated measures of the output of cultural industries and understand
the economic importance of volunteers.
Journal: Applied Economics
Pages: 1853-1858
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000158064
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158064
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1853-1858
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Papatheodorou
Author-X-Name-First: Andreas
Author-X-Name-Last: Papatheodorou
Title: Exploring the determination of student performance in university modules and streams
Abstract:
The role of various characteristics in explaining marks achieved by
university students in specific modules and streams is assessed. Building
on a hedonic analytical framework, this performance-related study aims at
being useful for lecturers in their design of learning and teaching
policy. Following the presentation of variables and some descriptive
statistics, the econometric exercise indicates that the statistically
significant factors are those primarily related to semester student
performance, i.e. an overall good (mediocre) student performs well (bad)
in the modules under consideration. Despite its superficial triviality,
this result might have important implications for university
administrators and their budgeting strategy.
Journal: Applied Economics
Pages: 1859-1864
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000154239
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000154239
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1859-1864
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Casu
Author-X-Name-First: Barbara
Author-X-Name-Last: Casu
Author-Name: Philip Molyneux
Author-X-Name-First: Philip
Author-X-Name-Last: Molyneux
Title: A comparative study of efficiency in European banking
Abstract:
This paper investigates whether there has been an improvement in and
convergence of productive efficiency across European banking markets since
the creation of the Single Internal Market. Using efficiency measures
derived from DEA estimation, the determinants of European bank efficiency
are evaluated using the Tobit regression model approach. The established
literature on modelling the determinants of bank efficiency is then
extended by recognizing the problem of the inherent dependency of DEA
efficiency scores when used in regression analysis. To overcome the
dependency problem, a bootstrapping technique is applied. Overall, the
results suggest that since the EU's Single Market Programme there has been
a small improvement in bank efficiency levels, although there is little
evidence to suggest that these have converged. The results also suggest
that inference on the determinants of bank efficiency drawn from
non-bootstrapped regression analysis may be biased and misleading.
Journal: Applied Economics
Pages: 1865-1876
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000158109
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158109
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1865-1876
Template-Type: ReDIF-Article 1.0
Author-Name: Bing-Huei Lin
Author-X-Name-First: Bing-Huei
Author-X-Name-Last: Lin
Author-Name: Jerry Wang
Author-X-Name-First: Jerry
Author-X-Name-Last: Wang
Title: Systematic skewness in asset pricing: an empirical examination of the Taiwan stock market
Abstract:
This paper is an empirical study of asset pricing with the systematic
skewness in the pricing model. We adopt the Fama-French three-factor
model, which incorporates the firm-size and book-to-market ratio in asset
pricing as the base case, and then includes the skewness factor used by
Harvey and Siddique in the pricing model. The evidence shows that
systematic skewness is significant and might be important in asset pricing
when portfolios are formed by industry, firm-size, book-to-market, or
momentum strategies. When portfolios are constructed by momentum or
coskewness strategies, lower momentum, or lower coskewness portfolios
exhibit higher skewness and higher kurtosis. When portfolios are grouped
by excess returns, it is seen that the average excess return is positively
correlated with size and coskewness. Thus the systematic skewness is
closely related to firm size. And the relationship between systematic
skewness and excess return is obscured by the reverse firm-size effect.
Journal: Applied Economics
Pages: 1877-1887
Issue: 17
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840310001628044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628044
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Handle: RePEc:taf:applec:v:35:y:2003:i:17:p:1877-1887
Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Serra
Author-X-Name-First: Teresa
Author-X-Name-Last: Serra
Author-Name: Barry Goodwin
Author-X-Name-First: Barry
Author-X-Name-Last: Goodwin
Title: Price transmission and asymmetric adjustment in the Spanish dairy sector
Abstract:
Asymmetric threshold vector error correction models are applied to
monthly price data to analyse price relationships and patterns of
transmission among farm and retail markets for a variety of dairy products
in Spain. The results suggest that asymmetries affect a conspicuous part
of the raw milk processed in Spain. Implications for the organizational
structure of Spanish dairy markets are offered.
Journal: Applied Economics
Pages: 1889-1899
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840310001628774
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628774
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1889-1899
Template-Type: ReDIF-Article 1.0
Author-Name: Oner Guncavdi-super-˙
Author-X-Name-First: Oner
Author-X-Name-Last: Guncavdi-super-˙
Author-Name: Andrew McKay
Author-X-Name-First: Andrew
Author-X-Name-Last: McKay
Title: Macroeconomic adjustment and private manufacturing investment in Turkey: a time-series analysis
Abstract:
Despite the drastic switch to market-based policies and outward
orientation in Turkey during the 1980s, private investment in
manufacturing industry has still not revived after seventeen years of
structural adjustment. This paper examines the main determinants of
private investment in the manufacturing sector and the impacts of
structural adjustment (particularly financial liberalisation as an
integral part of the reform) on it. The results show that liberalisation
policies in financial markets appear to have positive effects by reducing
the stringency of quantity constraints on investment while the high
interest rates resulting from financial liberalisation had no significant
impact on investment. Macroeconomic instability, proxied by the
variability of the inflation rate, seems to have discouraged investment in
manufacturing.
Journal: Applied Economics
Pages: 1901-1909
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840310001628099
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628099
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1901-1909
Template-Type: ReDIF-Article 1.0
Author-Name: Wolter Hassink
Author-X-Name-First: Wolter
Author-X-Name-Last: Hassink
Author-Name: Lourens Broersma
Author-X-Name-First: Lourens
Author-X-Name-Last: Broersma
Title: Quits, layoffs, and job destruction
Abstract:
We examine the quit-layoff distinction and its implications for job
destruction from the employer's perspective. Using a set of panel data of
Dutch firms, we get the following results. First, in addition to layoffs,
quits contribute to the speed of downward adjustment of labour. Second,
about 22% of the jobs of workers who resigned are destroyed. It is not
clear-cut whether these resignations are initiated by employers or
employees.
Journal: Applied Economics
Pages: 1911-1914
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000163329
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000163329
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1911-1914
Template-Type: ReDIF-Article 1.0
Author-Name: Bengt Kristrom
Author-X-Name-First: Bengt
Author-X-Name-Last: Kristrom
Author-Name: Tommy Lundgren
Author-X-Name-First: Tommy
Author-X-Name-Last: Lundgren
Title: Abatement investments and green goodwill
Abstract:
This paper develops and estimates a dynamic model that links profits to
green goodwill. Assuming that abatement investments generate green
goodwill, and using data from the Swedish pulp industry, we are able to
test the effects of green goodwill on firm level output price and profits.
The results suggests that Swedish pulp plant output prices and profits may
be positively related to changes in green goodwill. Furthermore, no
evidence is found to support the existence of adjustment costs due to
abatement investments.
Journal: Applied Economics
Pages: 1915-1921
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840310001628026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628026
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1915-1921
Template-Type: ReDIF-Article 1.0
Author-Name: S. Sosvilla-Rivero
Author-X-Name-First: S.
Author-X-Name-Last: Sosvilla-Rivero
Author-Name: R. Maroto-Illera
Author-X-Name-First: R.
Author-X-Name-Last: Maroto-Illera
Title: Regimen changes and duration in the European Monetary System
Abstract:
This article examines the regime changes in the Exchange Rate Mechanism
(ERM) of the European Monetary System (EMS), applying the duration model
approach to weekly data of eight currencies participating in the ERM,
covering the complete EMS history. When using the non-parametric
(univariate) analysis, it was found that for those regimens with long
durations, the ERM would have been relatively stable, while for the (more
common) regimes associated with short durations would have been more
unstable. The probability of maintaining a certain regime is estimated to
be 0.685. When applying a parametric (multivariate) analysis to
investigate the role of other variables in the probability of a regime
change, it is concluded that the interest rate differential with Germany
and the magnitude of the realignment would have negatively affected the
duration of a given regime, while credibility would have positively
influenced such duration. Finally, when distinguishing between groups of
currencies, it is observed that those in the core are more stable than
those in the periphery, obtaining evidence against equality of survival
functions among these groups of currencies.
Journal: Applied Economics
Pages: 1923-1933
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/0036840310001628783
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0036840310001628783
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1923-1933
Template-Type: ReDIF-Article 1.0
Author-Name: John Dunham
Author-X-Name-First: John
Author-X-Name-Last: Dunham
Author-Name: Michael Marlow
Author-X-Name-First: Michael
Author-X-Name-Last: Marlow
Title: The economic incidence of smoking laws
Abstract:
Although laws restricting smoking in restaurants are becoming
commonplace, most research has focused on either the health benefits that
laws may provide customers and workers or whether laws harm owners. But
while smoking laws may directly alter profits, owners may alter prices,
output, and other business attributes in ways that affect the welfare of
customers and workers. This study examines whether restaurant and bar
owners alter prices, entertainment, hours of operation and other business
attributes in response to local smoking laws. Substantial support is found
for these attribute changes in the Wisconsin hospitality industry. One
implication is that an overall assessment of the desirability of smoking
laws should consider economic effects imposed on owners, customers and
workers, as well as health benefits that follow laws.
Journal: Applied Economics
Pages: 1935-1942
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/00036840310001628765
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001628765
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1935-1942
Template-Type: ReDIF-Article 1.0
Author-Name: Seamus McGuinness
Author-X-Name-First: Seamus
Author-X-Name-Last: McGuinness
Title: University quality and labour market outcomes
Abstract:
This paper uses proxies for university quality derived from the Research
Assessment Exercise and the Teaching Quality Assurance Agency to assess
the impact of university quality on the labour market outcomes of a cohort
of UK graduates. The impacts on job quality and earnings were mainly
limited to graduates in particular disciplines or those obtaining 'poor'
degrees from 'good' universities. The results suggest that, after
controlling for pre-entry qualifications, labour market outcomes for most
graduates depended more on the subject studied and degree classification
awarded than on the university attended.
Journal: Applied Economics
Pages: 1943-1955
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000158442
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158442
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1943-1955
Template-Type: ReDIF-Article 1.0
Author-Name: Hui Feng
Author-X-Name-First: Hui
Author-X-Name-Last: Feng
Author-Name: Jia Liu
Author-X-Name-First: Jia
Author-X-Name-Last: Liu
Title: A SETAR model for Canadian GDP: non-linearities and forecast comparisons
Abstract:
This paper investigates the forecasting performance of the non-linear
time series SETAR model by using Canadian GDP data from 1965 to 2000.
Besides the within-sample fit, the forecasting performance of a standard
linear ARIMA model for the same sample has also been generated for
comparative purposes. Two forecasting methods, one-step-ahead and
multi-step-ahead forecasting, are compared for each type of model.
Journal: Applied Economics
Pages: 1957-1964
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000160674
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000160674
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1957-1964
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Bishop
Author-X-Name-First: Paul
Author-X-Name-Last: Bishop
Title: Collaboration and firm size: some evidence from the UK defence industry
Abstract:
This paper presents evidence on the relationship between collaboration
and firm size derived from an empirical study of the UK defence industry.
The results indicate that size has a positive impact on collaboration and,
in particular, with the propensity to collaborate with overseas firms.
However, size has no impact on the propensity to collaborate with UK
partners. This lends support to theories which emphasize the resource
constraints facing small firms in developing international collaboration.
There is a need for a policy debate concerning mechanisms to promote
collaboration to assist small firms to realise the benefits of
international collaboration.
Journal: Applied Economics
Pages: 1965-1969
Issue: 18
Volume: 35
Year: 2003
X-DOI: 10.1080/0003684032000158073
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000158073
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Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1965-1969
Template-Type: ReDIF-Article 1.0
Author-Name: Munisamy Gopinath
Author-X-Name-First: Munisamy
Author-X-Name-Last: Gopinath
Author-Name: Daniel Pick
Author-X-Name-First: Daniel
Author-X-Name-Last: Pick
Author-Name: Yonghai Li
Author-X-Name-First: Yonghai
Author-X-Name-Last: Li
Title: An empirical analysis of productivity growth and industrial concentration in us manufacturing
Abstract:
This manuscript focuses on the productivity-industrial concentration
relationship in the US manufacturing industries, while accounting for
external and internal sources of knowledge. It is found that there is a
critical level of industrial concentration beyond which its relationship
with productivity growth becomes negative. Results suggest that static
welfare losses of increasing concentration in manufacturing industries can
be offset by welfare gains from productivity growth.
Journal: Applied Economics
Pages: 1-7
Issue: 1
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000177143
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177143
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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:1-7
Template-Type: ReDIF-Article 1.0
Author-Name: William Dare
Author-X-Name-First: William
Author-X-Name-Last: Dare
Author-Name: A. Steven Holland
Author-X-Name-First: A. Steven
Author-X-Name-Last: Holland
Title: Efficiency in the NFL betting market: modifying and consolidating research methods
Abstract:
Modifying and consolidating previous research methods to generate more
reliable estimates, some fairly weak evidence is found of inefficiency in
the NFL betting market resulting from a bias favouring home underdog
(against away favourite) teams. In contrast to previous research, no
evidence is found that 'momentum strategies' generate significant returns
in this market.
Journal: Applied Economics
Pages: 9-15
Issue: 1
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000177152
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177152
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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:9-15
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Ault
Author-X-Name-First: Richard
Author-X-Name-Last: Ault
Author-Name: Robert Ekelund
Author-X-Name-First: Robert
Author-X-Name-Last: Ekelund
Author-Name: John Jackson
Author-X-Name-First: John
Author-X-Name-Last: Jackson
Author-Name: Richard Saba
Author-X-Name-First: Richard
Author-X-Name-Last: Saba
Title: Smokeless tobacco, smoking cessation and harm reduction: an economic analysis
Abstract:
Good estimates place 'hard core' smoking rates in the United States at
approximately 25%, with little change over the decade of the 1990s. This
paper examines the possibilities of 'harm reduction' with the use of
smokeless tobacco. Specifically, using an econometric model we seek to
determine whether an increase in the use of smokeless tobacco would lead
to reduced smoking rates in the United States. Applying our model to the
NHANES III (National Health and Nutrition Examination Survey) we find that
the use of smokeless tobacco by an average U.S. male smoker would increase
the average probability of smoke cessation by over 10%. Approximately 3
million additional 'quits' would result for 26 million smokers. Our study
permits an examination of cessation by age groups and we find that males
who use smokeless tobacco between 16 and 65 have a 10-14% probability of
quitting but that the probability falls beyond age 66. Important
implications for life extension and health costs would attend these
results with, under conservative assumptions, life years saved
approximating 2.16 million and health care cost-savings of about $3
billion per year.
Journal: Applied Economics
Pages: 17-29
Issue: 1
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000177161
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177161
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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:17-29
Template-Type: ReDIF-Article 1.0
Author-Name: Runar Brannlund
Author-X-Name-First: Runar
Author-X-Name-Last: Brannlund
Author-Name: Per-Olov Marklund
Author-X-Name-First: Per-Olov
Author-X-Name-Last: Marklund
Author-Name: Magnus Sjostrom
Author-X-Name-First: Magnus
Author-X-Name-Last: Sjostrom
Title: Evaluating market efficiency without price data: the Swedish market for wood fuel
Abstract:
The overall objective of this paper is to analyse the price development
and price formation for wood fuel used by the Swedish district heating
sector. According to Lonner et al., there is a significant potential for
increasing the use of wood fuel in Sweden, at a fairly moderate cost. The
basic question raised in this paper is then why this potential is not
realized. Specifically, a methodology is proposed for testing whether the
reason is that market imperfections are present. As a first step the shape
of the technology in the Swedish district heating sector is estimated for
the period 1989 to 1996. In the second step the estimated technology and
the assumption of cost-minimizing firms are combined to calculate shadow
prices, i.e. marginal valuation of wood fuel in this sector. If the
average shadow price significantly deviates from the average observed
price one may conclude that this market is functioning inefficiently due
to imperfections. According to constructed bootstrap confidence intervals
this difference is significant only for three out of eight years, implying
that the quantities of wood fuel traded are too small. For the other years
the difference is not significant, implying that one cannot, on
statistical grounds, reject the efficient market hypothesis for all years.
Journal: Applied Economics
Pages: 31-39
Issue: 1
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000177170
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177170
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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:31-39
Template-Type: ReDIF-Article 1.0
Author-Name: S. I. Spyrou
Author-X-Name-First: S. I.
Author-X-Name-Last: Spyrou
Title: Are stocks a good hedge against inflation? evidence from emerging markets
Abstract:
Theory suggests that equities are a good hedge against inflation.
However, most of the empirical evidence for industrialized economies
suggests that the relationship between stock returns and inflation is
negative. One explanation is the negative correlation between inflation
and real output growth. This paper examines the relationship between
inflation and stock returns for ten important Emerging Stock Market (ESM)
markets, namely, Chile, Mexico, Brazil, Argentina, Thailand, S. Korea,
Malaysia, Hong Kong, Philippines and Turkey, during the 1990s. To
anticipate the results, the relationship between stock returns and
inflation, for the whole sample period, is positive and statistically
significant for three of the sample ESMs, while it is positive (but
statistically insignificant) for a further three. Only for one ESM is the
relationship negative and statistically significant. This result may be
due to the role of money and the positive relationship between consumer
prices and output.
Journal: Applied Economics
Pages: 41-48
Issue: 1
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000177189
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177189
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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:41-48
Template-Type: ReDIF-Article 1.0
Author-Name: Don Bredin
Author-X-Name-First: Don
Author-X-Name-Last: Bredin
Author-Name: Gerard O'Reilly
Author-X-Name-First: Gerard
Author-X-Name-Last: O'Reilly
Title: An analysis of the transmission mechanism of monetary policy in Ireland
Abstract:
This paper examines the impact of a monetary policy shock on output,
prices and the exchange rate for Ireland during its participation in the
EMS. The paper draws on recent techniques used in the structural vector
autoregression literature. Results suggest that an exogenous temporary
increase in the short-term interest rate leads to a decline in output and
prices with the latter responding more sluggishly. In addition, a higher
interest rate leads to an immediate appreciation of the domestic exchange
rate and a subsequent depreciation of the currency. Exchange rate or
forward bias puzzle, which are prevalent in other studies, are not found.
The robustness of these results is checked under a number of alternative
identifications schemes
Journal: Applied Economics
Pages: 49-58
Issue: 1
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000177198
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177198
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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:49-58
Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsiu Laih
Author-X-Name-First: Chen-Hsiu
Author-X-Name-Last: Laih
Title: Effects of the optimal step toll scheme on equilibrium commuter behaviour
Abstract:
This paper derives commuters' equilibrium queuing costs and equilibrium
schedule delay costs before and after levying the optimal step tolls at a
queuing bottleneck. Dealing with these equilibrium costs technically one
can forecast some changes in equilibrium commuter behaviour from the
no-toll to the optimal step toll cases. There is some useful information
provided in this paper. First, the number of commuters who will or will
not pay the tolls can be investigated before tolling a queuing bottleneck.
Second, all commuters' departure time switching decisions from the no-toll
to the tolled cases can be investigated before tolling. Third, the
increased leisure time in the morning to the toll payer due to depart from
home later than their original departure times in the no-toll case can be
investigated before tolling. The above information of equilibrium commuter
behaviour, which the related literature has failed to provide, is useful
to policy-makers if the optimal step toll scheme is considered to be put
into practice.
Journal: Applied Economics
Pages: 59-81
Issue: 1
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000177206
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177206
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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:59-81
Template-Type: ReDIF-Article 1.0
Author-Name: Petr Mariel
Author-X-Name-First: Petr
Author-X-Name-Last: Mariel
Author-Name: Joel Sandonis
Author-X-Name-First: Joel
Author-X-Name-Last: Sandonis
Title: A model of advertising with application to the German automobile industry
Abstract:
This paper develops a dynamic duopolistic model of advertising and price
competition. Advertising accumulates a stock of goodwill which enters
directly into the demand functions and both the cooperative and predatory
effects of advertising are considered. It is shown that firms invest more
in advertising the higher the degree of cooperativeness of advertising and
some comparative static results are provided. In the second, empirical
part of the article, estimations of the demand equations are presented
using data from the German automobile industry. The main conclusion drawn
is that advertising plays an important role in this market and has a
predatory nature.
Journal: Applied Economics
Pages: 83-92
Issue: 1
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000177215
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177215
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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:83-92
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Healey
Author-X-Name-First: Andrew
Author-X-Name-Last: Healey
Author-Name: Martin Knapp
Author-X-Name-First: Martin
Author-X-Name-Last: Knapp
Author-Name: David Farrington
Author-X-Name-First: David
Author-X-Name-Last: Farrington
Title: Adult labour market implications of antisocial behaviour in childhood and adolescence: findings from a UK longitudinal study
Abstract:
While antisocial behaviour in younger age groups is largely viewed as a
public externality issue, there are also reasons for expecting less
favourable life-course outcomes for those individuals who follow
antisocial developmental pathways. Data from a UK longitudinal study of
delinquent development in a cohort of working class boys are used to model
the adult labour market implications of different antisocial developmental
pathways to age 32. A series of probit estimations suggests that children
identified as troublesome by peers and teachers at an early age, and who
subsequently engaged in delinquent behaviour throughout their adolescence,
had a significantly higher probability of experiencing long periods of
time out of the workforce prior to age 32 and lengthy periods of
unemployment and/or low paid work at both age 18 and at age 32. A Heckman
selectivity model estimated on weekly earnings at age 32 does not provide
evidence that antisocial development in children and adolescents is
associated with a lower wage. However, the findings from a two-part model
suggest that antisocial boys will have significantly lower levels of
expected earnings from employment at 32 years--an effect that is almost
entirely the result of lower rates of workforce participation. While a
full causal, structural model of labour outcomes is not developed, there
is tentative evidence that relatively poor employment outcomes for
antisocial boys are mediated through poor educational attainment at
secondary school and higher rates of criminal conviction in early
adulthood.
Journal: Applied Economics
Pages: 93-105
Issue: 2
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000174001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174001
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Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:93-105
Template-Type: ReDIF-Article 1.0
Author-Name: John Baffoe-Bonnie
Author-X-Name-First: John
Author-X-Name-Last: Baffoe-Bonnie
Title: Interindustry part-time and full-time wage differentials: regional and national analysis
Abstract:
This paper provides more evidence that the wage differential is far
smaller than is suggested by simple comparison of gross wages of full-time
and part-time workers. It is noted that to obtain a more reasonable
measure of the full-time and part-time wage differential, it is necessary
to adjust for differences in workers' characteristics, labour market
conditions and sample selection. It is found that, in general, full-time
and part-time workers exhibit different personal characteristics. In
particular, full-time workers possess more human capital and experience
than part-timers. Also, labour market conditions such as unions and
pension plans favour full-timers. These differences may partly account for
the wage disparity between full-time and part-time workers. It was noted
that the nonrandomness of the workers into full-time and part-time jobs
influences the wage determination of both full-time and part-time workers.
The results indicate that the adjustment of the wage equations to reflect
the above mentioned differences reduces the national wage differential
between full-time and part-time workers by 10%. The reduction is even
larger across regions and industries. Another finding was that the wage
determination processes between full-time and part-time workers do differ.
Journal: Applied Economics
Pages: 107-118
Issue: 2
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000174010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174010
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Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:107-118
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Florio
Author-X-Name-First: Massimo
Author-X-Name-Last: Florio
Author-Name: Katiuscia Manzoni
Author-X-Name-First: Katiuscia
Author-X-Name-Last: Manzoni
Title: Abnormal returns of UK privatizations: from underpricing to outperformance
Abstract:
This paper offers a review and discussion of the evidence concerning the
underpricing and long-run performance of British PIPOs (Privatization
Initial Public Offerings) between 1977 and 1996, i.e. from the first
privatization under a Labour Government (British Petroleum), until the
last ones by a Conservative Government (Railtrack). More recent years are
excluded because the change of government, the introduction of a windfall
tax on excess profits of regulated utilities, and changes in the
regulatory regime, mark a totally different landscape compared with the
previous twenty years. Evidence is found that underpricing was not
followed by underperformance, as is usually observed with IPOs, but rather
strong outperformance. This trend is decomposed by subgroups within a 55
observations sample, and it is concluded that lax regulation was probably
the main driving force of abnormal returns of British PIPOs.
Journal: Applied Economics
Pages: 119-136
Issue: 2
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000174029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174029
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Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:119-136
Template-Type: ReDIF-Article 1.0
Author-Name: Lee Kian Lim
Author-X-Name-First: Lee Kian
Author-X-Name-Last: Lim
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Title: Convergence and catching up in ASEAN: a comparative analysis
Abstract:
The increasing diversity of average growth rates and income levels across
countries has generated a large literature on testing the income
convergence hypothesis. Most countries in South-East Asia, particularly
the five founding ASEAN member countries (ASEAN-5), have experienced
substantial economic growth, with the pace of growth having varied
substantially across countries. Recent empirical studies have found
evidence of several convergence clubs, in which per capita incomes have
converged for selected groupings of countries and regions. This paper
applies different time series tests of convergence to determine if there
is a convergence club for ASEAN-5, as well as ASEAN-5 and the USA. The
catching up hypothesis states that the lagging country, with low initial
income and productivity levels, will tend to grow more rapidly by copying
the technology of the leader country, without having to bear the
associated costs of research and development. Given the important effects
of technological change on growth, this paper also examines whether
ASEAN-5 is catching up technologically with the USA.
Journal: Applied Economics
Pages: 137-153
Issue: 2
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000174038
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174038
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Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:137-153
Template-Type: ReDIF-Article 1.0
Author-Name: Kam-Ki Tang
Author-X-Name-First: Kam-Ki
Author-X-Name-Last: Tang
Author-Name: Yi-Ping Tseng
Author-X-Name-First: Yi-Ping
Author-X-Name-Last: Tseng
Title: Industry-specific human capital, knowledge labour, and industry wage structure in Taiwan
Abstract:
This paper investigates the role of industry-specific human capital
(ISHC) in determining industry wage structure. The model presented in this
paper distinguishes between knowledge labour and physical labour.
Knowledge labour is physical labour embodied with ISHC. It is postulated
that more ISHC-intensive industries, such as high-tech industries, pay
higher wages and the wage premiums increase with workers' experience. The
hypothesis is tested using a merged sample of 1997-1999 manpower
utilization survey data from a newly industrialized economy—Taiwan.
The findings show support for the effect of ISHC.
Journal: Applied Economics
Pages: 155-164
Issue: 2
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000174047
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174047
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Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:155-164
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Mikek
Author-X-Name-First: Peter
Author-X-Name-Last: Mikek
Title: Inflation targeting and switch of fiscal regime in New Zealand
Abstract:
Monetary policy cannot be adequately addressed without also specifying
fiscal policy. I interpret the economic reforms in New Zealand in the
1980s using a simple model that includes reaction functions of both
monetary and fiscal policy. The interpretation is based on the wealth
effects of the government debt. The successful and sustainable shift in
monetary policy regime in New Zealand was supported by a compatible switch
in fiscal policy.
Journal: Applied Economics
Pages: 165-172
Issue: 2
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000174056
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174056
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Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:165-172
Template-Type: ReDIF-Article 1.0
Author-Name: Jongsup Kim
Author-X-Name-First: Jongsup
Author-X-Name-Last: Kim
Title: Growth of regional economy and income inequality: county-level evidence from Florida, USA
Abstract:
The purpose of this paper is to find the homogeneous groups and growth
factors of Florida's counties through factor analysis and cluster analysis
from data sets from 1979 and 2000 and to grasp the relationship between
income inequality and growth by cluster using the derived growth factors.
The numbers of factors divided through factor analysis were three, and six
groups were obtained from cluster analysis. County-level evidence of this
paper indicates that GI_DI and SIN have a strong effect and are
statistically significant to the growth rate. Results for income
inequality by county and region indicate significant differences between
counties, including counties where agriculture accomplishes the primary
main function. Therefore, government should adopt the following policies:
minimum wage, unemployment insurance, local or state tax policies, income
support programmes, and tax reform.
Journal: Applied Economics
Pages: 173-183
Issue: 2
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000174065
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000174065
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Handle: RePEc:taf:applec:v:36:y:2004:i:2:p:173-183
Template-Type: ReDIF-Article 1.0
Author-Name: Clive Belfield
Author-X-Name-First: Clive
Author-X-Name-Last: Belfield
Author-Name: Xiangdong Wei
Author-X-Name-First: Xiangdong
Author-X-Name-Last: Wei
Title: Employer size-wage effects: evidence from matched employer-employee survey data in the UK
Abstract:
This paper employs a random sample of matched employer-employee data from
the UK to test seven possible explanations for the positive relationship
between employer size and pay. Individual wage equations show a large
employer size-wage premium. We then control for a range of
establishment-level variables, based on seven hypotheses typically
advanced to explain this premium. Each establishment-level factor reduces
the wage premium, but a sizeable premium nonetheless remains. In
adjudicating on these hypotheses, we find a strong association between the
internal labour market and the employer size-wage premium. This finding
supports the theory that the employer size-wage effect may be due to the
higher costs of turnover or monitoring in larger firms. However, we find
contrasting effects for public versus private sector establishments.
Journal: Applied Economics
Pages: 185-193
Issue: 3
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000175316
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175316
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Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:185-193
Template-Type: ReDIF-Article 1.0
Author-Name: William Crowder
Author-X-Name-First: William
Author-X-Name-Last: Crowder
Author-Name: Mark Wohar
Author-X-Name-First: Mark
Author-X-Name-Last: Wohar
Title: A cointegrated structural VAR model of the Canadian economy
Abstract:
This paper implements a cointegrated structural VAR model of the Canadian
economy using quarterly data over the period 1964-1994. The dynamic
properties of the estimated model are compared to the predictions of a
simple textbook macro model. Four long-run equilibrium relationships are
tested: (i) consumption-income; (ii) consumption-wealth; (iii) money
demand; and (iv) the Fisher equation. The empirical results obtained are
generally consistent with the predictions of the textbook model's long-run
implications, although level shifts are observed in the consumption/income
and the wealth/income ratios. Similarly it is found that there was an
increase in the ex post real interest rate, implying a level shift in the
Fisher relation, following the Bank of Canada's policy change towards a
stable price level target.
Journal: Applied Economics
Pages: 195-213
Issue: 3
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000175325
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175325
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Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:195-213
Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Girardone
Author-X-Name-First: Claudia
Author-X-Name-Last: Girardone
Author-Name: Philip Molyneux
Author-X-Name-First: Philip
Author-X-Name-Last: Molyneux
Author-Name: Edward Gardener
Author-X-Name-First: Edward
Author-X-Name-Last: Gardener
Title: Analysing the determinants of bank efficiency: the case of Italian banks
Abstract:
This study investigates the main determinants of Italian banks' cost
efficiency over the period 1993-1996, by employing a Fourier-flexible
stochastic cost frontier in order to measure X-efficiencies and economies
of scale. Quality and riskiness of bank outputs are explicitly accounted
for in the cost function and their impact on cost efficiency levels is
evaluated. The results show that mean X-inefficiencies range between 13
and 15 per cent of total costs and they tend to decrease over time for all
bank sizes. Economies of scale appear present and significant, being
especially high for popular and credit co-operative banks. Moreover, the
inclusion of risk and output quality variables in the cost function seems
to reduce the significance of the scale economy estimates. Following Spong
et al. (1995) a profitability test is undertaken that allows for the
identification of banks that are both cost and profit efficient. The
results suggest that the most efficient and profitable institutions are
more able to control all aspects of costs, especially labour costs.
Finally, the data are pooled to carry out a logistic regression model in
order to examine bank- and market-specific factors that influence Italian
banks' inefficiency. Confirming Mester (1993, 1996), inefficiencies appear
to be inversely correlated with capital strength and positively related to
the level of non-performing loans in the balance sheet. The analysis also
shows that there is no clear relationship between asset size and bank
efficiency. Finally, it is possible to infer that quoted banks seem to be
on average more efficient than their non-quoted counterparts.
Journal: Applied Economics
Pages: 215-227
Issue: 3
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000175334
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175334
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Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:215-227
Template-Type: ReDIF-Article 1.0
Author-Name: Helena Lenihan
Author-X-Name-First: Helena
Author-X-Name-Last: Lenihan
Title: Evaluating Irish industrial policy in terms of deadweight and displacement: a quantitative methodological approach
Abstract:
Evaluation should consider what would have happened in the absence of
assistance. To produce an assessment of this counter-factual scenario
involves considering the twin concepts of deadweight and displacement. An
evaluative framework is developed for measuring the impact of grant
assistance to individual firms. Logit regression analysis is used to
estimate predictive models for deadweight and displacement. The data were
gathered during face-to-face interviews with the managing directors of
firms that received grants from Shannon Development in the Shannon region
of Ireland (self-assessment approach). The objective was to establish
whether certain characteristics of grant-assisted firms can predict
probable deadweight and displacement effects. In the case of deadweight,
it was found that grant type, size of firm, whether investment appraisal
carried out by firm included grant received and whether firm was a
first-time or repeat grant recipient all impact on the level of
deadweight. Regarding displacement, it was found that size of firm and
type of ownership impact on displacement. While the evaluative framework
has been 'tested' in an Irish regional context, the logic of the approach
is clear and has a much wider international applicability regarding the
evaluation of industrial policy interventions.
Journal: Applied Economics
Pages: 229-252
Issue: 3
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000175343
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175343
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Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:229-252
Template-Type: ReDIF-Article 1.0
Author-Name: Sung Jin Kang
Author-X-Name-First: Sung Jin
Author-X-Name-Last: Kang
Title: The evolution of regional income distribution in Japan
Abstract:
Using data on per capita income of Japan's 47 prefectures between 1955
and 1997, this paper shows that one of the most popular measurements of
convergence, σ-convergence, is not invariant with both
transformation and definition of dispersion. Measured by the standard
deviation, the actual per capita income has diverged, whereas measured by
the coefficients of variation, it has converged since 1955. The log of per
capita income and relative income of all prefectures to Tokyo, however,
have converged regardless of the measurement of dispersion. In addition,
through the estimation of density function and transition matrix, the
intradistribution dynamics of each prefecture's per capita income is
identified.
Journal: Applied Economics
Pages: 253-259
Issue: 3
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000175352
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175352
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Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:253-259
Template-Type: ReDIF-Article 1.0
Author-Name: Sushanta Mallick
Author-X-Name-First: Sushanta
Author-X-Name-Last: Mallick
Title: A dynamic macroeconometric model for short-run stabilization in India
Abstract:
A small macroeconometric model examining the determinants of India's
trade and inflation is developed to address the effects of a reform policy
package similar to those implemented in 1991. This is different from the
previous studies in two important respects. First, inflation has been
modelled in an open economy context, and second, the non-stationarity of
the data into the model and estimation procedures has been explicitly
incorporated, suggesting that the stationarity assumption in earlier
studies may be a source of misspecification. The model in this paper has
been estimated using data from 1950 to 1995 employing fully modified
Phillips-Hansen method of estimation to obtain the cointegrating relations
and the short-run dynamic model. Policy simulations using dynamic
simulation method compare the responses to devaluation with the responses
to tight credit policy. It is shown that the trade balance effects of
tight credit policy are more enduring than that of devaluation. The
simulations demonstrate that the devaluation actually worsens trade
balance and hence devaluation cannot be an option in response to a
negative trade shock, whereas the reduction in domestic credit reflecting
demand contraction produces a desirable improvement in the trade balance.
Journal: Applied Economics
Pages: 261-276
Issue: 3
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000175361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000175361
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Handle: RePEc:taf:applec:v:36:y:2004:i:3:p:261-276
Template-Type: ReDIF-Article 1.0
Author-Name: Yannick L'horty
Author-X-Name-First: Yannick
Author-X-Name-Last: L'horty
Author-Name: Christophe Rault
Author-X-Name-First: Christophe
Author-X-Name-Last: Rault
Title: Inflation, minimum wage and other wages: an econometric study on French macroeconomic data
Abstract:
This study examines the set of interdependences between the formation of
wages, prices and the minimum wage (SMIC) through a vectorial error
correction model estimated on French quarterly macroeconomic data covering
the 1970-1/1999-4 period. Two periods are distinguished: the period of
inflation rise from 1970 to 1981, which coincides with an important
squeeze of the wage range, measured by the ratio of the minimum wage to
the hourly wage rate; the period of disinflation since 1981, that has been
concomitant with a stability of wage inequalities. Disinflation has hardly
benefited the evolution of the SMIC which has always profited by price
rises, in real and relative terms, which have become less strong. This
evolution does not benefit any more on wage rises, when the
interdependences between variables are taken into account. The SMIC seems
however to have gained in efficiency as an instrument on wage disparity
reduction. It rises are finally more persistent in real terms and
relatively to the other salaries and have always as little inflationary
impact on wages as on prices.
Journal: Applied Economics
Pages: 277-290
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674213
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674213
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:277-290
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandra Guariglia
Author-X-Name-First: Alessandra
Author-X-Name-Last: Guariglia
Author-Name: Yiing Jia Loke
Author-X-Name-First: Yiing Jia
Author-X-Name-Last: Loke
Title: What determines the value and volume of noncash transactions? Evidence from a panel of European and North American countries
Abstract:
Using data from a panel of 15 countries over the period 1990-1998, the
determinants of the use of non cash payment instruments are analysed. The
estimation results highlight the importance of distinguishing between the
determinants of the value and volume of noncash transactions. It is found
in fact that the volume of these transactions is generally affected by
changes in the determinants more strongly than their value, and that
variables such as the interest rate have a different impact on the volume
and the value of the transactions. The findings also suggest that past
habits play a dominant role in the intensity of use of noncash payment
instruments.
Journal: Applied Economics
Pages: 291-303
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684041000167222
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684041000167222
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:291-303
Template-Type: ReDIF-Article 1.0
Author-Name: James McGibany
Author-X-Name-First: James
Author-X-Name-Last: McGibany
Author-Name: Farrokh Nourzad
Author-X-Name-First: Farrokh
Author-X-Name-Last: Nourzad
Title: Do lower mortgage rates mean higher housing prices?
Abstract:
Much research has shown that mortgage rates exert a negative influence on
housing prices. This study analyses the long- and short-run relationships
between housing prices and mortgage rates using advanced nonstructural
estimation methods. As expected, a bivariate specification and a
four-variable housing demand specification both show that these variables
have a long-run relationship, and that there is a rather inelastic
response of housing prices to changes in mortgage rates. However, contrary
to previous research, the results from Granger non-causality tests,
impulse response functions and variance decompositions reveal that there
is virtually no short-run influence from mortgage rates to housing prices.
Journal: Applied Economics
Pages: 305-313
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674231
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674231
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:305-313
Template-Type: ReDIF-Article 1.0
Author-Name: Les Coleman
Author-X-Name-First: Les
Author-X-Name-Last: Coleman
Title: New light on the longshot bias
Abstract:
The longshot bias is the tendency for bettors to put more money on horses
with long odds than is justified by their objective probability of
winning: thus favourites win more often than projected by their odds. This
challenges normative assumptions as it means the return increases with the
probability of winning. Even though the longshot bias is well-known, it
has defied authoritative explanation. This article draws on studies of the
longshot bias over 50 years across four continents to show that its nature
is consistent with two bettor populations. One is risk-averse,
knowledgeable about winners, backs favourites, believes in the gambler's
fallacy, and has a positive expected return. The other, a larger group is
risk loving, backs longshots, believes in hot hands, and has a
significant, negative expected return. The crossover between the two
groups occurs where the probability of a positive result is about 0.2.
This matches the transition from risk aversion to risk embrace which has
been found in a variety of behavioural studies.
Journal: Applied Economics
Pages: 315-326
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674240
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674240
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:315-326
Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Sutter
Author-X-Name-First: Matthias
Author-X-Name-Last: Sutter
Author-Name: Martin Kocher
Author-X-Name-First: Martin
Author-X-Name-Last: Kocher
Title: Patterns of co-authorship among economics departments in the USA
Abstract:
Given the steady increase in co-authored papers in economics journals,
this paper reports a study of the patterns of co-authorship between US
universities and colleges. A majority of institutions produce more
co-authored than single-authored papers. Contacts with researchers from
the same institution are still an important source of co-authored papers,
even though slightly decreasing in frequency. The determinants of
co-authorship outside the own institution are tested in a gravity model
and it is found that distance and other geographical variables do not
matter. However, the quality of co-authors' institutions, measured by
rankings of institutions, has a significant impact on the number of
co-authored papers in top economics journals.
Journal: Applied Economics
Pages: 327-333
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674259
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674259
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:327-333
Template-Type: ReDIF-Article 1.0
Author-Name: Amado Peiro
Author-X-Name-First: Amado
Author-X-Name-Last: Peiro
Title: Are business cycles asymmetric? Some European evidence
Abstract:
Economic thought has often regarded business cycles as asymmetric. This
study examines the existence of asymmetries over the business cycle in
seven European countries: France, Germany, Ireland, Italy, Luxembourg, The
Netherlands and the United Kingdom. To analyse this issue, industrial
production in these countries from 1957 to 1998 is examined, and quarterly
contractions and expansions in this variable are compared. The results
obtained with both parametric and non-parametric methods allow the
existence of asymmetries in these countries to be questioned.
Journal: Applied Economics
Pages: 335-342
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674268
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674268
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:335-342
Template-Type: ReDIF-Article 1.0
Author-Name: Yuji Honjo
Author-X-Name-First: Yuji
Author-X-Name-Last: Honjo
Title: Growth of new start-up firms: evidence from the Japanese manufacturing industry
Abstract:
This study investigates firm growth as the post-entry performance of new
start-up firms. Using data on Japanese manufacturing firms founded during
1992-1996, the determinants of growth are identified among new start-up
firms. The effect is examined, not only of firm-specific characteristics
but also of entrepreneur-specific, industry-specific and local
characteristics on firm growth. It is found that younger and small-sized
firms are more likely to grow among the start-ups. It is also found that
entrepreneur's age and educational background affect the growth of
start-ups. It is not shown, however, that industry specialization induces
the growth of start-ups.
Journal: Applied Economics
Pages: 343-355
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674277
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674277
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:343-355
Template-Type: ReDIF-Article 1.0
Author-Name: Carmela Di Mauro
Author-X-Name-First: Carmela Di
Author-X-Name-Last: Mauro
Author-Name: Anna Maffioletti
Author-X-Name-First: Anna
Author-X-Name-Last: Maffioletti
Title: Attitudes to risk and attitudes to uncertainty: experimental evidence
Abstract:
In a series of experiments the interactions among individual attitudes
towards risk and uncertainty, the sign of the outcome domain, and the way
uncertainty is represented are tested. This is done in a unified
framework, eliciting individual values by means of a second price auction.
Results confirm the presence of the well-known fourfold pattern of risk
attitude (risk aversion for gains and risk seeking for losses at high
probability, and risk seeking for gains and risk aversion for losses at
low probability) and show that this pattern can also be extended to
uncertainty. In the valuation of losses the modal pattern is decreasing
risk and uncertainty aversion as the probability of loss increases, while
increasing risk and uncertainty aversion is observed for gains. Moreover,
it is found that the size of reaction to uncertainty does not depend on
the outcome domain, and that it persists in the face of an
incentive-compatible mechanism to elicit preferences.
Journal: Applied Economics
Pages: 357-372
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674286
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674286
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:357-372
Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Bask
Author-X-Name-First: Mikael
Author-X-Name-Last: Bask
Author-Name: Maria Melkersson
Author-X-Name-First: Maria
Author-X-Name-Last: Melkersson
Title: Rationally addicted to drinking and smoking?
Abstract:
When modelling demand for addictive consumption goods, the most widely
used framework is the rational addiction model proposed by Becker and
Murphy. This paper extends the rational addiction model to include two
addictive consumption goods, alcohol and cigarettes, and using aggregate
annual time series on sales volumes for the period 1955-1999, estimates
the aggregate demand for these goods in Sweden, where OLS estimates are
compared to GMM estimates allowing for possible endogeneity of lagged and
lead consumption. First, the demand for alcohol and cigarettes are
estimated as separate equations and it is found that alcohol demand is
quite well described by the rational addiction model while the same is not
true for cigarettes. The own-price elasticities are negative, and alcohol
demand is more elastic than cigarette demand. The cross-price elasticities
are also negative, showing that alcohol and cigarettes are complements.
Since consumption of alcohol and cigarettes are probably simultaneous
decisions, the demand for these goods is estimated as a system of
equations and it is found that alcohol demand is still positively affected
by lagged and lead consumption while cigarette demand is not. It is also
found that the elasticities obtained are now generally smaller compared to
when estimating the equations separately.
Journal: Applied Economics
Pages: 373-381
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674295
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674295
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:373-381
Template-Type: ReDIF-Article 1.0
Author-Name: Inna Cabelkova
Author-X-Name-First: Inna
Author-X-Name-Last: Cabelkova
Author-Name: Jan Hanousek
Author-X-Name-First: Jan
Author-X-Name-Last: Hanousek
Title: The power of negative thinking: corruption, perception and willingness to bribe in Ukraine
Abstract:
This study provides an empirical analysis of the association between
corruption perception and the willingness to offer bribes, as well as of
the influence of different sources of information on corruption perception
in the Ukraine. The higher the perceived corruption in an organization,
the more probable it is that a person dealing with that organization will
offer a bribe, therefore supporting corruption. Since corruption scandals
in Ukraine seldom result in legal action, information about corruption in
the mass media might actually encourage people to give bribes. This study
found that corruption perception is one of the key factors in giving a
bribe and that its positive/negative effects strongly depend on
institutions and government policies.
Journal: Applied Economics
Pages: 383-397
Issue: 4
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001674303
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001674303
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Handle: RePEc:taf:applec:v:36:y:2004:i:4:p:383-397
Template-Type: ReDIF-Article 1.0
Author-Name: David Bessler
Author-X-Name-First: David
Author-X-Name-Last: Bessler
Author-Name: Robert Ruffley
Author-X-Name-First: Robert
Author-X-Name-Last: Ruffley
Title: Prequential analysis of stock market returns
Abstract:
The Brier score and a covariance partition due to Yates are considered to
study the probabilistic forecasts of a vector autoregression on stock
market returns. Probabilistic forecasts from a model and data developed by
Campbell (1991) are studied with ordinary least squares. Calibration
measures and the Brier score and its partition are used for model
assessment. The partitions indicate that the ordinary least squares
version of Campbell's model does not forecast stock market returns
particularly well. While the model offers honest probabilistic forecasts
(they are well-calibrated), the model shows little ability to sort events
that occur into different groups from events that do not occur. The
Yates-partition demonstrates this shortcoming. Calibration metrics do not.
Journal: Applied Economics
Pages: 399-412
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682115
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682115
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:399-412
Template-Type: ReDIF-Article 1.0
Author-Name: Jati Sengupta
Author-X-Name-First: Jati
Author-X-Name-Last: Sengupta
Title: Estimating technical change by nonparametric methods
Abstract:
A nonparametric method using dynamic data envelopment analysis is
developed here to specify and estimate a dynamic production frontier. By
this technique technological progress measured by the time shift of the
production frontier and the scale economies measured by increasing returns
to scale are estimated from the observed input output data, which may
sometimes be nonstationary. An application to US computer industry
exhibits substantial technological progress and scale economies over the
period 1987-1998.
Journal: Applied Economics
Pages: 413-420
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682124
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682124
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:413-420
Template-Type: ReDIF-Article 1.0
Author-Name: David Madden
Author-X-Name-First: David
Author-X-Name-Last: Madden
Title: Labour market discrimination on the basis of health: an application to UK data
Abstract:
An analysis of wage discrimination is carried out on the basis of health
on UK data with a number of important modifications. First selection is
controlled for into both health and labour market status. Second the
direct effect of health upon productivity is accounted for and third,
discrimination is examined with regard to participation as well as wages.
The question of selection into health status is found to be of little
empirical importance but taking account of selection into labour market
status and the direct impact of health upon productivity leads to a fall
in measured discrimination. The paper finds similar results with regard to
participation. It is also examined whether these effects differ across age
and gender.
Journal: Applied Economics
Pages: 421-442
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682133
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682133
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:421-442
Template-Type: ReDIF-Article 1.0
Author-Name: Eleanor Doyle
Author-X-Name-First: Eleanor
Author-X-Name-Last: Doyle
Title: Exchange rate pass-through in a small open economy: the Anglo-Irish case
Abstract:
Bilateral import unit values are constructed to investigate the extent
and speed of exchange rate and production cost pass-through into the unit
values of Irish imports (total and sectoral) from the UK using Menon's
(1996) mark-up model. The approach used to measure exchange rate
pass-through is based on cointegration and error-correction modelling and
the period of analysis is from 1979 to 1995. Full pass-through from the
bilateral Irish pound-Sterling exchange rate and from UK producer costs
could not be rejected for total and sectoral import unit values for the
sample period 1979q1-1995q4. This implies no role for domestic competing
prices in explaining the long-run relationship determining unit values of
Irish imports from the UK. The results indicate that for aggregate and
sectoral unit values of Irish imports from the UK pass-through is
incomplete in the short-run.
Journal: Applied Economics
Pages: 443-455
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682142
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682142
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:443-455
Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Dritsakis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Dritsakis
Author-Name: Antonis Adamopoulos
Author-X-Name-First: Antonis
Author-X-Name-Last: Adamopoulos
Title: A causal relationship between government spending and economic development: an empirical examination of the Greek economy
Abstract:
During the past few years, in many countries, both developed and
developing, there has been a tendency to increase government spending.
This article intends to examine this tendency of the public sector as well
as the existing relationship between the extent of government spending and
economic development. The data used cover a time period between 1960 and
2001. An effort is made to determine causal relationships between spending
and economic development through the use of Wagner's theory.
Journal: Applied Economics
Pages: 457-464
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682151
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682151
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:457-464
Template-Type: ReDIF-Article 1.0
Author-Name: Natalia Barbosa
Author-X-Name-First: Natalia
Author-X-Name-Last: Barbosa
Author-Name: Paulo Guimaraes
Author-X-Name-First: Paulo
Author-X-Name-Last: Guimaraes
Author-Name: Douglas Woodward
Author-X-Name-First: Douglas
Author-X-Name-Last: Woodward
Title: Foreign firm entry in an open economy: the case of Portugal
Abstract:
The purpose of this paper is to analyse the entry process of foreign
direct investment (FDI) in Portuguese industrial sectors. Portugal
presents an interesting case where firms enter to take advantage of export
opportunities. The results suggest that foreign firms possess the ability
to overcome existing entry barriers that affect domestic firms.
Apparently, foreign firms have different expectations about profitability
than domestic firms, possibly due to foreign firms' export-orientation to
the rest of the European Union (EU). They appear to desire industries
where other foreign firms have clustered. Above all, it appears that these
foreign firms enter industries to exploit Portugal's chief location
advantage in Western Europe: low wages. Portugal's FDI experience is
relevant to other countries that have opened their economies to greater
trade and investment and attracted export-oriented firms.
Journal: Applied Economics
Pages: 465-472
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682160
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682160
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:465-472
Template-Type: ReDIF-Article 1.0
Author-Name: Jacint Balaguer
Author-X-Name-First: Jacint
Author-X-Name-Last: Balaguer
Author-Name: Manuel Cantavella-Jorda
Author-X-Name-First: Manuel
Author-X-Name-Last: Cantavella-Jorda
Title: Structural change in exports and economic growth: cointegration and causality analysis for Spain (1961-2000)
Abstract:
The Spanish export-led growth hypothesis is re-examined from the trade
liberalization process initiated four decades ago. For this purpose both
the export expansion and the progression from 'traditional' exports to
manufactured and semimanufactured exports are taken into consideration. A
new evidence is reported for the above period. Alongside a feedback
between aggregate exports and real output, it has been proved that the
structural transformation in export composition has also become a key
factor for Spain's economic development.
Journal: Applied Economics
Pages: 473-477
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682179
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682179
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:473-477
Template-Type: ReDIF-Article 1.0
Author-Name: Akihiko Kawaura
Author-X-Name-First: Akihiko
Author-X-Name-Last: Kawaura
Title: Deregulation and governance: plight of Japanese banks in the 1990s
Abstract:
The governance structure of public corporations is determined by the
agency relationship between shareholders and managers, and the agency
theory predicts that deregulation of an industry leads to governance
adaptation. Deregulation of the Japanese banking business in the 1980s
offers an interesting case study in this framework, as Japanese banks fell
into serious solvency problems in the post-deregulation 1990s. This paper
investigates whether ineffective governance was responsible for the plight
of Japanese banks. The sample is 384 corporations that were listed on the
Tokyo Stock Exchange between 1983 and 1990, which includes 59 banks. One
of the findings is that bank shareholders allowed more diffuse ownership
structure after deregulation, which demonstrates that the agency theory
did not hold for shareholders of Japanese banks.
Journal: Applied Economics
Pages: 479-484
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682188
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682188
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:479-484
Template-Type: ReDIF-Article 1.0
Author-Name: Audun Langørgen
Author-X-Name-First: Audun
Author-X-Name-Last: Langørgen
Title: Needs, economic constraints, and the distribution of public home-care
Abstract:
When private goods are publicly provided at subsidized prices, government
authorities have to determine the distribution of services on recipients.
The distribution of services according to need is frequently referred to
as an important policy goal. Thus governments are assumed to develop
standards for evaluating the relative needs of different clients. This
paper analyses the impact of needs and economic constraints on the
distribution of public home-care in Norway. The empirical results show
that individual needs have a significant effect on the distribution of
home-care. Another finding is that local public authorities with higher
disposable incomes meet client needs better. Finally the results are
utilized to derive a measure of client-specific need.
Journal: Applied Economics
Pages: 485-496
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682197
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682197
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:485-496
Template-Type: ReDIF-Article 1.0
Author-Name: Giannis Karagiannis
Author-X-Name-First: Giannis
Author-X-Name-Last: Karagiannis
Author-Name: Kostas Velentzas
Author-X-Name-First: Kostas
Author-X-Name-Last: Velentzas
Title: Decomposition analysis of consumers' demand changes: an application to Greek consumption data
Abstract:
A decomposition analysis for consumer demand functions is developed.
Changes in Marshallian demand or expenditure shares functions over time
are decomposed into a total substitution effect, an income effect, and a
habit effect. This framework is applied to post-war Greek consumption
patterns through a habit persistence version of the Quadratic Almost Ideal
Demand System (QUAIDS). It is found that for all commodity categories
(i.e., food, beverages and tobacco, footwear and clothing, settling and
housing, and others) the income effect was the main driving force in
explaining changes in both quantity demanded and expenditure shares,
followed by habit and total substitution effects.
Journal: Applied Economics
Pages: 497-504
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682205
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682205
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:497-504
Template-Type: ReDIF-Article 1.0
Author-Name: Hubert Janicki
Author-X-Name-First: Hubert
Author-X-Name-Last: Janicki
Author-Name: Phanindra Wunnava
Author-X-Name-First: Phanindra
Author-X-Name-Last: Wunnava
Title: Determinants of foreign direct investment: empirical evidence from EU accession candidates
Abstract:
This study examines bilateral foreign direct investments (FDI) between
the members of the European Union and eight central and east European
candidate (CEEC) economies in transition, awaiting accession into the
European Union (EU). Cross-section data were obtained for Bulgaria, Czech
Republic, Estonia, Hungary, Poland, Romania, Slovak Republic, and Slovenia
for 1997. Once the main characteristics of FDI recipient and donor nations
are identified in a bilateral framework, it will be feasible to predict
future FDI inflows. This study reveals that the key determinants of FDI
inflows in CEECs are size of the host economy, host country risk, labour
costs in host country, and openness to trade. Countries that are receiving
fewer foreign investments could make themselves more attractive to
potential donor nations by focusing on some of the key determinants
identified by this study.
Journal: Applied Economics
Pages: 505-509
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682214
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682214
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:505-509
Template-Type: ReDIF-Article 1.0
Author-Name: Dan Friesner
Author-X-Name-First: Dan
Author-X-Name-Last: Friesner
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Title: Non-profit cost-adjusting with quality as a private good
Abstract:
Nonprofit firms that produce multiple outputs may lower service intensity
for one patient group in response to lower reimbursements for another
group. This is termed 'cost-adjusting' behaviour. Cost-adjusting implies a
serious welfare transfer. The results of this analysis suggest that the
potential for this welfare transfer exists; however, the ability of a firm
to exploit this welfare transfer depends largely on the demand conditions
present in the market. An empirical analysis finds evidence that nonprofit
hospitals in Washington State do practise cost-adjusting.
Journal: Applied Economics
Pages: 511-523
Issue: 5
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001682223
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682223
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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:511-523
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Telhado Pereira
Author-X-Name-First: Pedro Telhado
Author-X-Name-Last: Pereira
Author-Name: Pedro Silva Martins
Author-X-Name-First: Pedro Silva
Author-X-Name-Last: Martins
Title: Returns to education and wage equations
Abstract:
The paper shows why considering a number of education-dependent
covariates in a wage equation decreases the coefficient of education in
that equation. This result is illustrated empirically with a meta-analysis
for Portugal. The education coefficient decreases when covariates are used
that can be considered post-education decisions; on the other hand, it is
independent of sample size, tenure and whether hourly or monthly wages are
used. These results support the use of a simple specification of the
Mincer equation for the study of the total returns to education.
Journal: Applied Economics
Pages: 525-531
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217571
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217571
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:525-531
Template-Type: ReDIF-Article 1.0
Author-Name: Mustapha Baghli
Author-X-Name-First: Mustapha
Author-X-Name-Last: Baghli
Title: Modelling the FF/MM rate by threshold cointegration analysis
Abstract:
This paper investigates a sticky-price model of exchange rate
determination: extension of Krugman's target zone model with price inertia
applied to the French Franc. A novel theoretical argument is considered,
Threshold Cointegration, such that the long-run relationship between the
parity and its fundamentals is dormant within a certain range of
disequilibria but is restored when the system crosses the boundaries. Over
the period 1987-1993, nonlinearities in the FF/DM rate, consistent with
the credibility of this target zone, were detected by pointing out a
band-reversion mechanism. A shock persistence analysis which highlights a
nonlinear reversion of the exchange-rate deviation is also implemented.
Journal: Applied Economics
Pages: 533-548
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217580
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217580
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:533-548
Template-Type: ReDIF-Article 1.0
Author-Name: Karen Cabos
Author-X-Name-First: Karen
Author-X-Name-Last: Cabos
Author-Name: Nikolaus Siegfried
Author-X-Name-First: Nikolaus
Author-X-Name-Last: Siegfried
Title: Controlling inflation in Euroland
Abstract:
The experience with the two pillar strategy of the European Central Bank
(ECB) suggests that at some point in the future the ECB may have to commit
to one of the more traditional policy strategies - a direct inflation
target or an intermediate monetary target. This study offers some
information on the scale of control and indicator problems associated with
both strategies. We estimate the links between monetary policy actions and
inflation in dynamic linear models with the Kalman filter. Using European
M3 that the ECB has published, it is found that the overall control
problems involved in targeting money are larger than for direct inflation
targets.
Journal: Applied Economics
Pages: 549-558
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217599
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217599
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:549-558
Template-Type: ReDIF-Article 1.0
Author-Name: Buly Cardak
Author-X-Name-First: Buly
Author-X-Name-Last: Cardak
Author-Name: James Ted McDonald
Author-X-Name-First: James Ted
Author-X-Name-Last: McDonald
Title: Neighbourhood effects, preference heterogeneity and immigrant educational attainment
Abstract:
This paper investigates differences between the educational attainment of
immigrants, children of immigrants and native-born individuals in
Australia by using Australian Youth Survey (AYS) data combined with
aggregate Australian Census data. Differences in educational attainment
are decomposed into: (i) typical demographic and socio-economic sources
common to all ethnic groups; (ii) unobserved region of residence and
region of origin effects; and (iii) neighbourhood effects such as degree
and ethnic concentration of particular ethnic groups in different
neighbourhoods. A theoretical model incorporating these effects is
proposed but structural estimation is not possible for lack of appropriate
data. Instead, a reduced form methodology is proposed and employed. The
empirical results identify positive ethnic neighbourhood effects in high
school completion and university enrolment for some immigrant groups in
Australia, in particular first and second generation immigrants from Asia.
The results indicate that it is not just the size of the ethnic network
but the 'quality' of the network that is important.
Journal: Applied Economics
Pages: 559-572
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217607
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217607
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:559-572
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Co
Author-X-Name-First: Catherine
Author-X-Name-Last: Co
Author-Name: Patricia Euzent
Author-X-Name-First: Patricia
Author-X-Name-Last: Euzent
Author-Name: Thomas Martin
Author-X-Name-First: Thomas
Author-X-Name-Last: Martin
Title: The export effect of immigration into the USA
Abstract:
Much has been written on the connection between migration and
international trade. Human history provides important examples of
migrations leading to increased trade activity, with perhaps the most
well-known example of the 'Overseas Chinese'. This study investigates the
trade-related importance of Chinese and other immigrants into the USA.
Previous studies may have underestimated (or overestimated) the
relationship between trade and migration with nations treated as
featureless plains rather than as varied landscapes. This study contends
that an understanding of the immigration-trade relationship can be
improved upon by examining the specific pattern and destination of
immigration into specific US states. Using state level export data to 28
immigrant source countries in 1993, a strong immigration-trade link is
found, reinforcing conclusions made by previous research using country
level data. The compelling connection between immigration and trade found
in this study and others suggests that future changes to US immigration
policies necessitate that their trade effects also be taken into account.
Journal: Applied Economics
Pages: 573-583
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217616
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217616
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:573-583
Template-Type: ReDIF-Article 1.0
Author-Name: Felix Chan
Author-X-Name-First: Felix
Author-X-Name-Last: Chan
Author-Name: Dora Marinova
Author-X-Name-First: Dora
Author-X-Name-Last: Marinova
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Title: Trends and volatilities in foreign patents registered in the USA
Abstract:
This study analyses the patent trends and volatilities for the top 12
foreign patenting countries in the US market from 1975 to 1997. Japan is
ranked first in terms of foreign patents registered in the USA, followed
by Germany. Patent registrations from each of these countries have
increased steadily over time, but at different rates. Using monthly time
series data for 1975-1997, the time-varying volatility of Australian,
Japanese and German patents registered in the USA is examined in detail.
The asymmetric AR(1)-GJR(1,1) model is found to be suitable for Australia
and Japan, while the best fitting model for Germany is the symmetric
AR(1)-GARCH(1,1) model.
Journal: Applied Economics
Pages: 585-592
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217625
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217625
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:585-592
Template-Type: ReDIF-Article 1.0
Author-Name: A. Mansur
Author-X-Name-First: A.
Author-X-Name-Last: Mansur
Author-Name: M. Masih
Author-X-Name-First: M.
Author-X-Name-Last: Masih
Author-Name: Rumi Masih
Author-X-Name-First: Rumi
Author-X-Name-Last: Masih
Title: Fractional cointegration, low frequency dynamics and long-run purchasing power parity: an analysis of the Australian dollar over its recent float
Abstract:
A relatively new but generalized concept of fractional cointegration is
applied to shed some light on the validity of purchasing power parity
(PPP) as a long-run equilibrium condition, by examining the long-run
relationship between quarterly consumer price indices and bilateral
exchange rates of the Australian dollar and seven major OECD trading
partners, over Australia's recent float. The paper demonstrates that
relaxing the condition that the residual from the cointegration equation
must be a I(0) process, provides a wide range of cases of parity-reversion
with processes that are CI(1,d) with 0 < d < 1. Findings tend to
suggest that, while standard tests of cointegration fail to support
cointegration between nominal exchange rates, domestic and foreign prices,
and thus the empirical favour for PPP as a long-run phenomenon, the
fractional cointegration analysis permits deviations from equilibrium to
follow a fractionally integrated process and hence captures a much wider
class of parity or mean-reversion behaviour. Results are mainly supportive
of long-run PPP. Furthermore, an analysis of the short-run dynamics
propelling the long-run relationship (through a VECM) reveals that
domestic prices are consistently the initial receptor of an exogenous
shock to the equilibrium and the long-run equilibrium is restored through
the short-run adjustment of the nominal exchange rates. These findings are
shown to hold clear policy implications.
Journal: Applied Economics
Pages: 593-605
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217634
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217634
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:593-605
Template-Type: ReDIF-Article 1.0
Author-Name: G. Thomas Sav
Author-X-Name-First: G. Thomas
Author-X-Name-Last: Sav
Title: Higher education costs and scale and scope economies
Abstract:
Higher education multi-product cost functions are estimated for the
public and private sectors disaggregated by research, comprehensive,
baccalaureate, and associate level institutions. The output mix
incorporates professional school teaching output, in addition to
undergraduate and graduate teaching and research outputs. Scale and scope
economies are examined by sector and institutional level, also accounting
for regional differences. Ray economies are found throughout the private
sector, but confined to lower level public institutions. Research
economies are widespread throughout all sector levels. Economies of scope
prevail among private institutions across levels, but only among
comprehensive and baccalaureate public colleges.
Journal: Applied Economics
Pages: 607-614
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217643
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217643
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:607-614
Template-Type: ReDIF-Article 1.0
Author-Name: B. Burcin Yurtoglu
Author-X-Name-First: B. Burcin
Author-X-Name-Last: Yurtoglu
Title: Persistence of firm-level profitability in Turkey
Abstract:
The dynamics of company profits for 172 of the largest manufacturing
firms in Turkey are studied. A time-series analysis is used to estimate
the long-run projected profits and firm-specific speed of adjustment
parameters that measures the rate at which short-run rents are eroded.
While persistent profitability differences across firms are observed,
there is also a moderately quick erosion of rents except for the most
highly profitable firms. Firm characteristics rather than industry effects
account for the differences in permanent profits. Contrary to the
widespread view that developing countries suffer from uncompetitive
markets, the results in this paper suggest that the intensity of
competition in Turkey is no less than in developed countries and similar
to other developing countries.
Journal: Applied Economics
Pages: 615-625
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217652
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217652
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:615-625
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Santin
Author-X-Name-First: Daniel
Author-X-Name-Last: Santin
Author-Name: Francisco Delgado
Author-X-Name-First: Francisco
Author-X-Name-Last: Delgado
Author-Name: Aurelia Valino
Author-X-Name-First: Aurelia
Author-X-Name-Last: Valino
Title: The measurement of technical efficiency: a neural network approach
Abstract:
The main purpose of this paper is to provide an introduction to
artificial neural networks (ANNs) and to review their applications in
efficiency analysis. Finally, a comparison of efficiency techniques in a
non-linear production function is carried out. The results suggest that
ANNs are a promising alternative to traditional approaches, econometric
models and non-parametric methods such as data envelopment analysis, to
fit production functions and measure efficiency under non-linear contexts.
Journal: Applied Economics
Pages: 627-635
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217661
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217661
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:627-635
Template-Type: ReDIF-Article 1.0
Author-Name: Galip Altinay
Author-X-Name-First: Galip
Author-X-Name-Last: Altinay
Title: On measuring average growth rate
Abstract:
This study investigates the difference in average growth rates obtained
from two commonly used methods. It is analytically shown that the
difference lies on the dichotomy of constant and time-varying growth that
can be converted to the dichotomy of trend stationary (TS) and difference
stationary (DS) processes. For TS processes the two methods would yield
the same results whereas they differ in case of integrated processes. It
is also proven that the OLS residuals of a log-linear trend model of an
integrated series will be always a random walk, in which case the
differenced model that yields the same result as geometric mean is
appropriate. The findings are illustrated on the real GDPs of OECD
countries.
Journal: Applied Economics
Pages: 637-644
Issue: 6
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217670
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217670
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Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:637-644
Template-Type: ReDIF-Article 1.0
Author-Name: David Forrest
Author-X-Name-First: David
Author-X-Name-Last: Forrest
Author-Name: O. David Gulley
Author-X-Name-First: O. David
Author-X-Name-Last: Gulley
Author-Name: Robert Simmons
Author-X-Name-First: Robert
Author-X-Name-Last: Simmons
Title: Substitution between games in the UK national lottery
Abstract:
Virtually all lottery agencies offer a variety of games to suit the
tastes of players in an attempt to maximize revenue to the government.
Using the UK National Lottery, which offers a variety of on-line and
scratchcard games, the extent to which there is substitution or
complementarity between games is evaluated Employing weekly data from the
three UKNL lottery games offered over the sample period, it is found that
own-game characteristics have, by far, the largest influence on sales.
Some evidence is found suggesting that the lotto and scratchcard games are
partial substitutes for one another. Thunderball sales appear independent
of the other two games. Some evidence is also found that the Wednesday and
Saturday drawings of the lotto game are substitutes. The overall
conclusion is that Camelot has successfully designed and marketed three
games that each appeal to bettors in different ways. Thus, sales from one
game do not seem to seriously cannibalize the sales of the other games,
with the exceptions noted above. Further, the introduction of another,
temporary game (Big Draw 2000) contributed to net sales. These results
also suggest that the games do not appear to be complements to each other,
indicating that the various arguments as to why the games may be so
(transactions costs, brand awareness, and the portfolio effect) do not
appear to be very strong.
Journal: Applied Economics
Pages: 645-651
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000222034
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222034
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:645-651
Template-Type: ReDIF-Article 1.0
Author-Name: M. Giulietti
Author-X-Name-First: M.
Author-X-Name-Last: Giulietti
Author-Name: S. Mccorriston
Author-X-Name-First: S.
Author-X-Name-Last: Mccorriston
Author-Name: P. Osborne
Author-X-Name-First: P.
Author-X-Name-Last: Osborne
Title: Foreign direct investment in the UK: evidence from a disaggregated panel of the UK food sector
Abstract:
Most empirical studies of foreign direct investment (FDI) typically use
either a cross-sectional (capturing ownership-specific and industry
determinants) or time-series (capturing the determinants of FDI over time)
approach. Panel data techniques, however, have the advantage of combining
both aspects of the data. Using disaggregated panel data for the UK food
sector - a leading recipient of FDI in the UK - the results in this paper
highlight the predominance of ownership-specific and industry
characteristics in determining the presence of foreign-owned firms in this
sector while macro-economic factors have a more marginal effect.
Journal: Applied Economics
Pages: 653-663
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000222043
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222043
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:653-663
Template-Type: ReDIF-Article 1.0
Author-Name: Gokce Soydemir
Author-X-Name-First: Gokce
Author-X-Name-Last: Soydemir
Author-Name: Elena Bastida
Author-X-Name-First: Elena
Author-X-Name-Last: Bastida
Author-Name: Genaro Gonzalez
Author-X-Name-First: Genaro
Author-X-Name-Last: Gonzalez
Title: The impact of religiosity on self- assessments of health and happiness: evidence from the US Southwest
Abstract:
Using an age stratified random sample from an ongoing population-based
study of Mexican Americans 45 years of age or older living in the
Southwest this study fexamines the relationship between religiosity and
self-rated indices of physical health, subjective health status and
happiness. After estimating a set of binary logit models and controlling
for individual characteristics such as age and gender, findings indicate
that religiously involved respondents have a lower probability of
reporting a health problem than those less or not involved. Further, those
respondents who attend religious services regularly are more likely to
assess themselves healthier and happier than those reporting sporadic or
no attendance. However, when the religious variable is factored into six
constructs, as the frequency of religious attendance increases the
happiness measure initially increases to an inflection point then it
continues to increase but at a slower rate. This result is consistent with
the argument that those individuals who, on average, attend religious
services once a week appear to reap the greatest incremental rewards in
terms of assessments of subjective health and overall happiness.
Journal: Applied Economics
Pages: 665-672
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000222052
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222052
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:665-672
Template-Type: ReDIF-Article 1.0
Author-Name: D. R. Kamerschen
Author-X-Name-First: D. R.
Author-X-Name-Last: Kamerschen
Author-Name: J. E. Morgan
Author-X-Name-First: J. E.
Author-X-Name-Last: Morgan
Title: Collusion analysis of the Alabama liquid asphalt market
Abstract:
The Alabama liquid asphalt market in the USA is examined over the period
1961-1978 for evidence of activity consistent with collusion. Some 14
conditional collusion-facilitating factors that could influence a market's
tendency towards collusion, not all equally important or necessarily in
agreement with every other factor, were considered. While some of these
factors are controversial and can help or harm a collusion, the net
balance of factors and all of the important factors and evidence pointed
towards being consistent with a conspiracy. While not examined as
extensively, it was also found that the circumstantial evidence in the
market was also consistent with collusion. This article suggests a
procedural methodology for initiation and resolution of suspected
collusion for determining appropriate damages. While the precise law and
damages allowed will be country-specific, the general methodology should
have wide application in many countries whose laws attempt to foster and
preserve competition and punish and deter monopoly acquired and maintained
by acting badly, such as by colluding or exclusionary conduct.
Journal: Applied Economics
Pages: 673-693
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000222061
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222061
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:673-693
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Profit
Author-X-Name-First: Stefan
Author-X-Name-Last: Profit
Author-Name: Stefan Sperlich
Author-X-Name-First: Stefan
Author-X-Name-Last: Sperlich
Title: Non-uniformity of job-matching in a transition economy - A nonparametric analysis for the Czech Republic
Abstract:
This study explores the properties and development of the matching
technology in the Czech Republic during the transition to a market
economy. Nonparametric additive modelling allows us to assess flexible
functional forms, which comprise for instance CES and trans-log
specifications. This enables us to evaluate the matching process locally
for each combination of unemployment and vacancies rather than being
restricted to global coefficients. Special interest is devoted to analysis
and economic determinants of regional variation in the returns to scale of
the matching function. Non-linearities are found in the partial adjustment
process of unemployment outflows, and a negative coefficient on vacancies
in some years. Moreover, increasing returns to scale in job-matching are
found locally. Returns to scale are found to be negatively correlated to
the share in employment in services and to outmigration, positively
correlated to the employment share in industry, the unemployment rate and
various measures of active labour market policies.
Journal: Applied Economics
Pages: 695-714
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000222070
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222070
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:695-714
Template-Type: ReDIF-Article 1.0
Author-Name: Hoanjae Park
Author-X-Name-First: Hoanjae
Author-X-Name-Last: Park
Title: On inferring individual behaviour from market behaviour in a predetermined quantities model
Abstract:
This article develops the theoretical basis of individual behaviour
recovered from market behaviour in a predetermined quantities model. As
applied economists argue, an inverse demand system may be empirically
sound within the framework of classical demand theory. However, it should
not lead to the conclusion that the market responses for changes in
quantity should be used to see welfare effects instead of the individual
responses by price changes as far as the market is concerned. It shows
theoretically and empirically how individual responses can be recovered
from market responses in a predetermined quantities model. It suggests
that the fundamental results of this article should be used on
interpreting empirical results from the predetermined quantities models.
Journal: Applied Economics
Pages: 715-721
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191084
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191084
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:715-721
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Vaillant
Author-X-Name-First: Nicolas
Author-X-Name-Last: Vaillant
Title: Discrimination in matchmaking: evidence from the price policy of a French marriage bureau
Abstract:
This article shows how a matchmaking agency may improve the quality of
serious meetings between individuals seeking long-term relationship,
thanks to a price discrimination policy. Its filtering is based on
objective and official characteristics (sex, age and contract's
environment) and on implicit criteria: the few asked characteristics by
its clients.
Journal: Applied Economics
Pages: 723-729
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000222098
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222098
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:723-729
Template-Type: ReDIF-Article 1.0
Author-Name: Ying Kong
Author-X-Name-First: Ying
Author-X-Name-Last: Kong
Title: The price premium of generic to brand-names and pharmaceutical price index
Abstract:
The price premium of generic pharmaceuticals to brand-names is examined
under different competitive market situations. The result of this study
shows that the number, market share, and the age of both brand-name and
generic products have the most explanatory power for explaining the price
premium. This study further applies this method to a pharmaceutical price
index in order to explain 'Drug Price Index Perplexities.'
Journal: Applied Economics
Pages: 731-737
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000222106
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222106
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:731-737
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Hon
Author-X-Name-First: Mark
Author-X-Name-Last: Hon
Author-Name: Soo-Keong Yong
Author-X-Name-First: Soo-Keong
Author-X-Name-Last: Yong
Title: The price of owning a car: an analysis of auction quota premium in Singapore
Abstract:
Faced with dilemmas parallel to countries besieged by road congestions
and limited land resources, Singapore has chosen to adapt a Vehicle Quota
System (VQS) whereby car owners are required to bid for a licence in an
auction before their vehicles are allowed onto the road. In this study,
the behaviour of VQS auction prices is examined using a structural time
series approach. For outliers that are not observable from innovations,
auxiliary residuals with dummy variables are used to supplement the
analysis. In general, prices exhibit a fairly constant seasonal pattern.
The inclusion of monthly VQS quotas released by the transport regulatory
body and the national stock market index is not useful in explaining the
observed price behaviour. Interestingly, a basic structural model with
stochastic components seems to fit the data best.
Journal: Applied Economics
Pages: 739-751
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000222115
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000222115
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:739-751
Template-Type: ReDIF-Article 1.0
Author-Name: Gregor Bruggelambert
Author-X-Name-First: Gregor
Author-X-Name-Last: Bruggelambert
Title: Information and efficiency in political stock markets: using computerized markets to predict election results
Abstract:
This study concentrates on four computerized political markets in Germany
between 1990 and 1998. While this new method for the prediction of
election events worked quite well in the USA it did not perform as well in
Germany. Searching for the causes of this distinction it is shown that, in
contrast to the findings of Forsythe et al. (1992), (i) extraordinary
profits were achieved less by people who took advantage of other people's
anomalies than by those people who acquired an advantage from the
existence of asymmetric information, (ii) the marginal trader hypothesis
does not hold when applied to German markets, and that (iii) traders
relied on public opinion polls. It is argued that these distinctions are
caused by the differences in the German and the US voting systems.
Additionally, it is shown that to a certain extent (iv) election markets
were able to predict the contemporary mood of the electorate without the
help of public opinion polls, (v) first of all the informed traders used
public opinion polls as a source of information, and (vi) prices
themselves became a source of information on which expectations were
based.
Journal: Applied Economics
Pages: 753-768
Issue: 7
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217364
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217364
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:753-768
Template-Type: ReDIF-Article 1.0
Author-Name: Diansheng Dong
Author-X-Name-First: Diansheng
Author-X-Name-Last: Dong
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Author-Name: Harry Kaiser
Author-X-Name-First: Harry
Author-X-Name-Last: Kaiser
Title: Modelling milk purchasing behaviour with a panel data double-hurdle model
Abstract:
In this study, the double-hurdle model typically used in cross-sectional
data is extended to panel data structures. The new double-hurdle model can
account not only for the censored nature of commodity purchases, but also
for the dynamics of the purchase process. In this model, a flexible error
structure is assumed to account for state dependence and
household-specific heterogeneity. In the empirical application for milk
purchases, it is found that generic advertising increases the probability
of market participation as well as the purchase quantity and incidence.
Temporal dependence is also found in both purchase and participation
equations.
Journal: Applied Economics
Pages: 769-779
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229505
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229505
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:769-779
Template-Type: ReDIF-Article 1.0
Author-Name: J. Manrique
Author-X-Name-First: J.
Author-X-Name-Last: Manrique
Author-Name: K. Ojah
Author-X-Name-First: K.
Author-X-Name-Last: Ojah
Title: Credits and non-interest rate determinants of loan demand: a Spanish case study
Abstract:
This article uses bivariate probit analysis to model the potential
relationship between the condition of being credit-unconstrained and
holding loans as well as to ascertain determinants of a household being
credit-unconstrained and likely holding consumer and real-estate loans. It
documents that family size, education, permanent and transitory incomes,
among others, affect Spanish households' desire and capacity to hold
loans. Furthermore, these factors were found to affect demands for
real-estate and consumer loans differently. In general, the above and
other results from this research provide insights that would interest
credit consumers, credit suppliers, and policy makers in Spain.
Journal: Applied Economics
Pages: 781-791
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229514
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229514
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:781-791
Template-Type: ReDIF-Article 1.0
Author-Name: Diane Bruce Anstine
Author-X-Name-First: Diane Bruce
Author-X-Name-Last: Anstine
Title: The impact of the regulation of the cable television industry: the effect on quality-adjusted cable television prices
Abstract:
Between the mid-1980s and early 1990s, cable television rates increased
substantially. Simple price comparisons over the regulated and deregulated
eras are difficult as the programming changed simultaneously. Using a
modified hedonic framework to allow for the lack of competition on the
supply side of the industry, this paper imputes the price for regulation
era cable packages using consumers' estimated willingness to pay for
individual satellite networks during the unregulated period. Then a
'quality adjusted' price for the cable package offered in 1985 is
estimated. On average, regulation benefited consumers by keeping prices
below monopolist's profit maximizing price.
Journal: Applied Economics
Pages: 793-802
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229523
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229523
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:793-802
Template-Type: ReDIF-Article 1.0
Author-Name: Felix Buchel
Author-X-Name-First: Felix
Author-X-Name-Last: Buchel
Author-Name: Antje Mertens
Author-X-Name-First: Antje
Author-X-Name-Last: Mertens
Title: Overeducation, undereducation, and the theory of career mobility
Abstract:
The theory of career mobility (Sicherman and Galor, Journal of Political
Economy, 98(1), 169-92, 1990) claims that wage penalties for overeducated
workers are compensated by better promotion prospects. Sicherman (Journal
of Labour Economics, 9(2), 101-22, 1991) was able to confirm this theory
in an empirical study using panel data. However, the only retest using
panel data so far (Robst, Eastern Economic Journal, 21, 539-50, 1995)
produced rather ambiguous results. In the present paper, random effects
models to analyse relative wage growth are estimated using data from the
German Socio-Economic Panel. It is found that overeducated workers in
Germany have markedly lower relative wage growth rates than adequately
educated workers. The results cast serious doubt on whether the career
mobility model is able to explain overeducation in Germany. The
plausibility of the results is supported by the finding that overeducated
workers have less access to formal and informal on-the-job training, which
is usually found to be positively correlated with wage growth even when
controlling for selectivity effects (Pischke, Journal of Population
Economics, 14, 523-48, 2001).
Journal: Applied Economics
Pages: 803-816
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229532
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229532
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:803-816
Template-Type: ReDIF-Article 1.0
Author-Name: Claus Brand
Author-X-Name-First: Claus
Author-X-Name-Last: Brand
Author-Name: Nuno Cassola
Author-X-Name-First: Nuno
Author-X-Name-Last: Cassola
Title: A money demand system for euro area M3
Abstract:
In order to assess the importance of monetary and financial developments
for key macroeconomic variables in the euro area a money demand system for
M3 is estimated adopting a structural cointegrating VAR approach. While
maintaining a good statistical representation of the data, long-run
relationships are based on economic theory. By using generalized response
profiles the dynamics of the money demand system is investigated without
any further identifying assumptions. Error bounds of the profiles are
derived using bootstrap simulations.
Journal: Applied Economics
Pages: 817-838
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229541
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229541
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:817-838
Template-Type: ReDIF-Article 1.0
Author-Name: John Beghin
Author-X-Name-First: John
Author-X-Name-Last: Beghin
Author-Name: Jean-Christophe Bureau
Author-X-Name-First: Jean-Christophe
Author-X-Name-Last: Bureau
Author-Name: Sophie Drogue
Author-X-Name-First: Sophie
Author-X-Name-Last: Drogue
Title: Calibration of incomplete demand systems in quantitative analysis
Abstract:
An easily implemented and flexible calibration technique for partial
demand systems is introduced, combining recent developments in incomplete
demand systems and a set of restrictions conditioned on the available
elasticity estimates. The technique accommodates various degrees of
knowledge on cross-price elasticities, satisfies curvature restrictions,
and allows the recovery of an exact welfare measure for policy analysis.
The technique is illustrated with a partial demand system for food
consumption in Korea for different states of knowledge on cross-price
effects. The consumer welfare impact of food and agricultural trade
liberalization is measured.
Journal: Applied Economics
Pages: 839-847
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229550
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229550
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:839-847
Template-Type: ReDIF-Article 1.0
Author-Name: Renee Fry
Author-X-Name-First: Renee
Author-X-Name-Last: Fry
Title: International demand and liquidity shocks in a SVAR model of the Australian economy
Abstract:
A structural vector autoregressive model of the Australian economy that
allows for international shocks from the USA, Japan as well as world
commodity prices is specified and estimated for the period 1979-1999. A
block exogenous structure linking the three countries is imposed. The
international linkages are modelled using a factor structure to circumvent
problems from estimating large scale dynamic models. The factors are
estimated recursively using a Kalman filter and are found to represent
aggregate demand and liquidity shocks for the USA and Japan respectively.
The key empirical result is the USA shocks are the dominant source of
international shocks on the Australian economy with the Japanese economy
having a dampening effect on the USA shocks. The empirical results also
show that Australian monetary policy responds to domestic conditions
rather than international monetary policy.
Journal: Applied Economics
Pages: 849-863
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229569
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229569
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:849-863
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul-Magid Gadad
Author-X-Name-First: Abdul-Magid
Author-X-Name-Last: Gadad
Author-Name: Hardy Thomas
Author-X-Name-First: Hardy
Author-X-Name-Last: Thomas
Title: Do asset sales lead to improvements in operating performance?
Abstract:
The changes in operating performance associated with asset sales are
investigated for a sample of UK firms. Asset sales are followed by an
improvement of 11% per annum in the level of operating performance
relative to the pre-sale performance level. Further, improved abnormal
operating performance is found, which is measured after controlling for
the performance of the industry, the pre-sale performance of the firm and
the level of competition in the market for asset sales. The abnormal
operating performance of the remaining assets improve by 2.4% per annum,
on average, for three years after the asset sales. This study also finds
that the market for asset sales is imperfectly competitive.
Journal: Applied Economics
Pages: 865-871
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229578
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229578
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:865-871
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Title: Modelling the US real GNP with fractionally integrated techniques
Abstract:
The US real GNP is analysed by means of fractionally integrated
techniques. LM tests proposed by Robinson for testing unit roots and other
fractionally integrated hypotheses are applied to the quarterly GNP series
and to its log-transformation. The maximum likelihood estimation procedure
of Sowell for estimating ARFIMA models is implemented. The results
indicate that the order of integration of the US real output is much
higher than one, and thus, the standard approach of taking first
differences may still produce series with long memory behaviour.
Journal: Applied Economics
Pages: 873-879
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000229587
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229587
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:873-879
Template-Type: ReDIF-Article 1.0
Author-Name: Leo Michelis
Author-X-Name-First: Leo
Author-X-Name-Last: Michelis
Author-Name: Athanasios Papadopoulos
Author-X-Name-First: Athanasios
Author-X-Name-Last: Papadopoulos
Author-Name: Gregory Papanikos
Author-X-Name-First: Gregory
Author-X-Name-Last: Papanikos
Title: Regional convergence in Greece in the 1980s: an econometric investigation
Abstract:
The purpose of this paper is to evaluate empirically regional convergence
in Greece during the 1981-1991 period of participation in the European
Economic Community (EEC). Census data at NUTS III level of regional
disaggregation are used. A number of structural policies undertaken in the
1980s, motivated by membership in the EEC, were conducive to regional
convergence among the 51 NUTS III regions of Greece. Four different
dependent variables and three model specifications are used to test the
hypothesis of regional convergence. The overall evidence does not reject
the idea of regional convergence. The estimated convergence coefficients
are relatively similar across the three model specifications but they vary
with the dependent variable used to measure convergence.
Journal: Applied Economics
Pages: 881-888
Issue: 8
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191093
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Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:881-888
Template-Type: ReDIF-Article 1.0
Author-Name: Walter Enders
Author-X-Name-First: Walter
Author-X-Name-Last: Enders
Author-Name: Kamol Chumrusphonlert
Author-X-Name-First: Kamol
Author-X-Name-Last: Chumrusphonlert
Title: Threshold cointegration and purchasing power parity in the pacific nations
Abstract:
The paper uses a threshold cointegration methodology to explore the
properties of long-run purchasing power parity (PPP) in the Pacific
nations. Using Japan and the USA as base countries, it is shown that
long-run PPP holds for most Asian countries but that the adjustment
mechanism is asymmetric. In contrast to symmetric error-correction models,
it is found that asymmetric adjustments of nominal exchange rates play an
important role in eliminating deviations from long-run PPP.
Journal: Applied Economics
Pages: 889-896
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233104
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233104
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:889-896
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Marsh
Author-X-Name-First: Thomas
Author-X-Name-Last: Marsh
Author-Name: Ted Schroeder
Author-X-Name-First: Ted
Author-X-Name-Last: Schroeder
Author-Name: James Mintert
Author-X-Name-First: James
Author-X-Name-Last: Mintert
Title: Impacts of meat product recalls on consumer demand in the USA
Abstract:
The impact of meat product recall events on consumer demand (beef, pork,
poultry, and other consumption goods) in the USA is tested empirically.
Beef, pork, and poultry recall indices are constructed from both the Food
Safety Inspection Service's meat recall events and from newspaper reports
over the period 1982-1998. Following previous product recall studies,
recall indices are incorporated as shift variables in consumers' demand
functions. Estimating an absolute price version of the Rotterdam demand
model, findings indicate that Food Safety Inspection Service's meat recall
events significantly impact demand, and newspaper reports do not.
Moreover, although elasticities related to recall events are significant
they are small in magnitude relative to price and income effects. Any
favourable effects on the demands of meat substitutes for a recall are
offset by a more general negative effect on meat demand. The general
negative effect indicates a shift out of meat to non-meat consumption
goods.
Journal: Applied Economics
Pages: 897-909
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233113
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233113
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:897-909
Template-Type: ReDIF-Article 1.0
Author-Name: Yanqin Fan
Author-X-Name-First: Yanqin
Author-X-Name-Last: Fan
Author-Name: Dong Li
Author-X-Name-First: Dong
Author-X-Name-Last: Li
Author-Name: Qi Li
Author-X-Name-First: Qi
Author-X-Name-Last: Li
Title: Nonlinearity in medical expenditures: a new semiparametric approach
Abstract:
Research in empirical health economics has found that the relationship
between medical expenditures and age, income and other variables can be
highly nonlinear. Moreover, men and women can have quite different medical
expenditure patterns due to their differences in life expectancy. Thus it
may be difficult to find an appropriate parametric model to capture the
highly complicated nonlinearity in medical expenditures, and introducing a
simple gender dummy variable in a parametric model may not reveal all the
medical expenditure differences between men and women. This study takes a
semiparametric approach. In particular, an additive partially linear
specification is employed to study the relationship between medical
expenditures and age, income, gender and other individual characteristics.
Using data from the National Medical Expenditure Survey, the results
indicate that the semiparametric approach taken in this study is very
promising. They confirm that medical expenditures are nonlinear in income
and age, and that men and women have quite different medical expenditure
patterns.
Journal: Applied Economics
Pages: 911-916
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233122
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233122
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:911-916
Template-Type: ReDIF-Article 1.0
Author-Name: Ray Burnham
Author-X-Name-First: Ray
Author-X-Name-Last: Burnham
Author-Name: Robert Feinberg
Author-X-Name-First: Robert
Author-X-Name-Last: Feinberg
Author-Name: Thomas Husted
Author-X-Name-First: Thomas
Author-X-Name-Last: Husted
Title: Central city crime and suburban economic growth
Abstract:
This paper explores the relationship between inner-city crime patterns
and suburban income growth, analysing data on 318 US counties for selected
metropolitan statistical areas of 32 states within the United States from
1982 to 1997. The findings suggest that violent crime does seem to have a
negative impact on close-in suburbs, with a less negative impact farther
away from the central city (becoming positive at some point). While
results are not as robust as we had hoped they are consistent with flight
to further-out suburbs rather than migration to different metropolitan
areas in response to urban crime.
Journal: Applied Economics
Pages: 917-922
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233131
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233131
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:917-922
Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Lima
Author-X-Name-First: Marcos
Author-X-Name-Last: Lima
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Title: Profit margins and business cycles in the Brazilian industry: a panel data study
Abstract:
The paper investigates the relationship between profit margins and
business cycle in the Brazilian industry during the 1992-1998 period,
taking as reference a dynamic panel data model founded around a
conjectural variation framework. The empirical results indicate
procyclical behaviour of profit margins for the aggregate business cycle
but is less clear in the case of sector-specific business cycle variables.
Among the most robust results, one can highlight the roles of lagged
profitability and import intensity and the negligible role of union
density. Schmalensee in 1985 (American Economic Review 75, pp. 341-51)
outlined three theoretical interpretations associated with the empirical
model (classical, revisionist and managerial). Econometric tests on the
related restrictions do not allow one to exclusively legitimate any of the
three interpretations.
Journal: Applied Economics
Pages: 923-930
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/003684042000233140
File-URL: http://www.tandfonline.com/doi/abs/10.1080/003684042000233140
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:923-930
Template-Type: ReDIF-Article 1.0
Author-Name: Martha Misas
Author-X-Name-First: Martha
Author-X-Name-Last: Misas
Author-Name: Maria Teresa Ramirez
Author-X-Name-First: Maria Teresa
Author-X-Name-Last: Ramirez
Title: Long-run income and price elasticities of demand for Colombian nontraditional exports: a multivariate cointegration framework
Abstract:
A long run income and price elasticities of demand is estimated for
Colombian nontraditional exports through a multivariate cointegration
analysis. Based on the combination of cointegration and exogeneity
concepts and the inclusion of the complete dynamic system, the paper shows
the existence of a long-run relationship among nontraditional exports,
relative price and foreign demand, and higher long-run elasticities than
those provided by the long-run cointegration vector coefficients that are
usually reported in the trade literature.
Journal: Applied Economics
Pages: 931-938
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233159
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233159
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:931-938
Template-Type: ReDIF-Article 1.0
Author-Name: Jia Liu
Author-X-Name-First: Jia
Author-X-Name-Last: Liu
Title: Macroeconomic determinants of corporate failures: evidence from the UK
Abstract:
Previous studies on the relationship between macroeconomic aggregates and
business failures have been restricted to the description of the short-run
relationships among the variables. This paper uses an error-correction
model (ECM) to investigate the determinants of UK corporate failures by
modelling the short-run and long-run behaviours of corporate failure rates
in relation to macroeconomic phenomena over the period 1966-1999. The
findings indicate that failure rates are associated with interest rates,
credit, profits, price, and corporate birth rates both in the short run
and in the long run. Of these macroeconomic variables, interest rate
appears to be an important factor influencing failure rates and can be
used as a feasible policy instrument to reduce the incidence of corporate
failures. The impact of the Insolvency Act 1986 has also been examined and
its mitigating effect on corporate failures has been identified.
Journal: Applied Economics
Pages: 939-945
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233168
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233168
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:939-945
Template-Type: ReDIF-Article 1.0
Author-Name: Franco Fiordelisi
Author-X-Name-First: Franco
Author-X-Name-Last: Fiordelisi
Author-Name: Philip Molyneux
Author-X-Name-First: Philip
Author-X-Name-Last: Molyneux
Title: Efficiency in the factoring industry
Abstract:
The efficiency and productivity in the Italian factoring industry between
1993 and 1997 is investigated using DEA. The factoring industry is an
important part of many financial systems and it has established itself as
a major source of finance and credit management for a growing number of
companies. However, as far as the authors are aware no studies have
applied frontier methodologies to examine the efficiency and productivity
of this industry. This paper focuses on the Italian market, the second
largest in the world after the UK. The results suggest that there are
substantial cost savings to be had in the Italian factoring industry: the
mean cost inefficiency in the Italian factoring industry over the period
1993-1997 ranged between 14% and 22%. These inefficiencies are mainly
generated by allocative rather than technical inefficiencies. Scale and
technical inefficiencies seem to be similar in magnitude and the supposed
importance of the latter typically found in the banking efficiency
literature, are not observed in Italian factoring. Firm size does not
appear to be related to technical, allocative and economic efficiency and
the hypothesis that ownership structure influences factoring firm
efficiency could not be rejected. In order to analyse efficiency change
over time the Malmquist index is used. Total factor productivity was
decomposed into technical change and efficiency change and the latter was
further divided into pure efficiency and scale efficiency change.
Productivity changes were slight over the period 1993-1996, while a
substantial increase in productivity occurred between 1996 and 1997: the
latter appears to be the result of a large improvement in the technology
and a positive scale efficiency change, however, this was slowed down by a
negative pure efficiency change.
Journal: Applied Economics
Pages: 947-959
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/00036884042000233177
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036884042000233177
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:947-959
Template-Type: ReDIF-Article 1.0
Author-Name: Josep LluIs Carrion-I-Silvestre
Author-X-Name-First: Josep LluIs
Author-X-Name-Last: Carrion-I-Silvestre
Author-Name: Tomas Del Barrio
Author-X-Name-First: Tomas Del
Author-X-Name-Last: Barrio
Author-Name: Enrique Lopez-Bazo
Author-X-Name-First: Enrique
Author-X-Name-Last: Lopez-Bazo
Title: Evidence on the purchasing power parity in a panel of cities
Abstract:
Evidence is provided on the PPP hypothesis using a sample of 50 Spanish
cities for a long time period through the application of panel data unit
root tests. Although results suggest non-rejection of the PPP, short-run
deviations - as measured by half-lives - indicate that real factors might
be causing a slow rate of convergence to a common price index, even in
highly integrated economies.
Journal: Applied Economics
Pages: 961-966
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233186
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233186
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:961-966
Template-Type: ReDIF-Article 1.0
Author-Name: Vuslat Us
Author-X-Name-First: Vuslat
Author-X-Name-Last: Us
Title: Monetary transmission mechanism in Turkey under the monetary conditions index: an alternative policy rule
Abstract:
This study analyses monetary transmission mechanism in Turkey using a
small structural macroeconomic model. The core equations of the model
consist of aggregate demand, wage-price setting, uncovered interest rate
parity, foreign sector and a monetary policy rule. The aim of the paper is
to analyse the disinflation path, the output gap, the output level, the
exchange rate and the interest rate, and also the output-inflation
variance frontier of the economy under various scenarios. The first
scenario assumes that a standard Taylor rule is implemented as the policy
rule. In the alternative scenario, instead of the standard Taylor rule,
the MCI, Monetary Conditions Index - combination of the changes in the
short-term real interest rate and in the real effective exchange rate in a
single variable - is used as a policy instrument. The results indicate
that the economy stabilizes much more quickly and shows significantly less
volatility under this new setting. Therefore, the paper concludes that the
policymakers should consider using MCI as an instrument when conducting
monetary policy.
Journal: Applied Economics
Pages: 967-976
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233195
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233195
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:967-976
Template-Type: ReDIF-Article 1.0
Author-Name: Nieves lazaro
Author-X-Name-First: Nieves
Author-X-Name-Last: lazaro
Author-Name: Maria Luisa Molto
Author-X-Name-First: Maria Luisa
Author-X-Name-Last: Molto
Author-Name: Rosario Sanchez
Author-X-Name-First: Rosario
Author-X-Name-Last: Sanchez
Title: Paid employment and unpaid caring work in Spain
Abstract:
The objective of this paper is to investigate the determinants of unpaid
time in caring activities, with a special emphasis on the gender
dimension. Data from the Household Panel Survey for Spain is used to
estimate an ordered probit model for the hours interval in care of
children and adult people in need of care. The results show that gender is
one of the key determinants of the distribution of time in caring. Being
in paid employment is also an important factor in the time devoted to
caring. Demographic variables like age, marital status and education are
also relevant, particularly in the case of women. Finally, cultural habits
and customs are also important.
Journal: Applied Economics
Pages: 977-986
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233203
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233203
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:977-986
Template-Type: ReDIF-Article 1.0
Author-Name: Ambrose Leung
Author-X-Name-First: Ambrose
Author-X-Name-Last: Leung
Title: Delinquency, schooling, and work: time allocation decision of youth
Abstract:
This paper examines the possible factors that affect the time allocation
decision of youth between delinquency, schooling, and work. Based on a
joint decision model, evidence from Montreal shows that influences from
different social institutions such as family, church, school, peers and
the workplace are important determinants of how young people decide to
spend their time on various activities. The findings provided here take
into account the joint decision nature of the problem and therefore
provide more precise estimates than those of the existing literature.
Journal: Applied Economics
Pages: 987-993
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233212
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233212
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:987-993
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Islam
Author-X-Name-First: Muhammad
Author-X-Name-Last: Islam
Title: The long run relationship between openness and government size: evidence from bounds test
Abstract:
The bounds test is applied to determine the existence of a level
relationship between government size, openness, terms of trade volatility,
and external risk using time series data from Australia, Canada, England,
Norway, Sweden, and the USA. Bounds test results show that the existence
of a long run relationship in the USA and Canada, but not in any of the
other countries. Long run parameters are estimated using both
autoregressive distributed lag and FM-OLS procedures. Results vary from
country to country, with some evidence that government size is
significantly affected by openness and terms of trade volatility. However,
contrary to argument and evidence developed using cross-section data,
empirical evidence presented in this paper show that the size of the
government has not changed to mitigate the effect of increased income
risks associated with greater openness.
Journal: Applied Economics
Pages: 995-1000
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233221
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233221
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:995-1000
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Title: The use of quantile regressions in estimating gender wage differentials: a case study of the Philippines
Abstract:
Quantile regressions are used to analyse the size, components, and nature
of the gender-earnings differentials as well as the returns to education
by gender in the Philippines, over the entire conditional distribution of
earnings, using data from the 1999 APIS survey. This approach allows more
focused conclusions about the nature of gender-earnings differentials.
Incorporating the quantile regression approach to the Oaxaca-Blinder
decomposition allows the localization of gender discrimination to
particular quantiles of the earnings distribution and permits more
targeted policy intervention.
Journal: Applied Economics
Pages: 1001-1007
Issue: 9
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000233230
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000233230
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Handle: RePEc:taf:applec:v:36:y:2004:i:9:p:1001-1007
Template-Type: ReDIF-Article 1.0
Author-Name: Erick Eschker
Author-X-Name-First: Erick
Author-X-Name-Last: Eschker
Author-Name: Stephen Perez
Author-X-Name-First: Stephen
Author-X-Name-Last: Perez
Author-Name: Mark Siegler
Author-X-Name-First: Mark
Author-X-Name-Last: Siegler
Title: The NBA and the influx of international basketball players
Abstract:
The determinants of salaries for professional athletes in the National
Basketball Association (NBA) are examined to investigate how international
athletes have fared relative to athletes trained in the United States. It
is found that international basketball players were paid a large premium
above other players of similar skills and characteristics for the 1996-97
and 1997-98 seasons, after which the premium disappeared. This temporary
premium is likely attributable to a 'winner's curse' experienced by NBA
teams before investing significant resources in scouting and evaluating
international players.
Journal: Applied Economics
Pages: 1009-1020
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246713
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246713
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1009-1020
Template-Type: ReDIF-Article 1.0
Author-Name: David Kamerschen
Author-X-Name-First: David
Author-X-Name-Last: Kamerschen
Title: A mnemonic for the major factors influencing the likelihood of collusion
Abstract:
In the typical industrial organization textbook and class, and in the
courtroom, numerous factors are identified as providing a predisposition
to a cartel. These factors include cost differences, product
differentiation, number of firms, technology, growth of the industry,
elasticity, frequency of sales, number and size distribution of sellers
and buyers, discount rate, type of competition, vertical integration, cost
ratio, imports, sealed bidding, social structure and track record, future
expectations, recognition of interdependence, announcements and exchanges
of economic information, multimarkets, etc. There are many factors to keep
in mind. Fortunately, the accumulated theoretical and empirical work on
collusion suggests that we can, for all practical purposes, focus on the
factors contained in the mnemonic word CARTEL. The key factors are:
Concentration, Additional, Revenue, Talk, Entry, Likeness.
Journal: Applied Economics
Pages: 1021-1024
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246722
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246722
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1021-1024
Template-Type: ReDIF-Article 1.0
Author-Name: Zbigniew Kominek
Author-X-Name-First: Zbigniew
Author-X-Name-Last: Kominek
Title: Stock markets and industry growth: an Eastern European perspective
Abstract:
This paper reviews the recent stock market developments in Poland and the
Czech Republic and provides a case-study insight into the direction of
causality between stock market expansion and economic growth. It finds no
evidence that the relative failure of the Czech security market affected
the country's economy. It also reports that the largest equity issuers in
Eastern Europe do not come from industries traditionally considered
financially dependent.
Journal: Applied Economics
Pages: 1025-1030
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246731
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246731
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1025-1030
Template-Type: ReDIF-Article 1.0
Author-Name: Zhaoyong Zhang
Author-X-Name-First: Zhaoyong
Author-X-Name-Last: Zhang
Author-Name: Kiyotaka Sato
Author-X-Name-First: Kiyotaka
Author-X-Name-Last: Sato
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Title: Is a monetary union feasible for East Asia?
Abstract:
The empirical suitability of the East Asian economies for potential
monetary integration is assessed. The structural vector autoregression
(VAR) method is employed to identify the underlying shocks using a
three-variable VAR model across the East Asian economies. The estimates of
the EEC are used as a benchmark to compare the size of the underlying
shocks and the speed of adjustment to shocks in both regions to determine
the feasibility of forming an optimum currency area (OCA) in East Asia.
The empirical results do not display strong support for forming an OCA in
the East Asian region. The results do imply, however, that some small
subregions are potential candidates for OCAs, since their disturbances are
correlated and small and these economies adjust rapidly to shocks.
Journal: Applied Economics
Pages: 1031-1043
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246740
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246740
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1031-1043
Template-Type: ReDIF-Article 1.0
Author-Name: Changkyu Choi
Author-X-Name-First: Changkyu
Author-X-Name-Last: Choi
Title: Foreign direct investment and income convergence
Abstract:
The role of foreign direct investment (FDI) in the convergence of income
level and growth has been investigated by panel data regressions.
Bilateral FDI data from OECD from 1982 to 1997 is used. Income level and
growth gaps between source and host countries turn out to decrease as
bilateral FDI increases. It is also found that geographical closeness and
common language play an important role in convergence in income level and
growth.
Journal: Applied Economics
Pages: 1045-1049
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246759
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246759
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1045-1049
Template-Type: ReDIF-Article 1.0
Author-Name: Nobuhiro Hosoe
Author-X-Name-First: Nobuhiro
Author-X-Name-Last: Hosoe
Title: Crop failure, price regulation, and emergency imports of Japan's rice sector in 1993
Abstract:
In 1993, an extraordinarily cool summer in Japan brought about low rice
yields, which caused considerable disturbances to the rice markets. Japan
imported a large amount of rice as an emergency measure. Two controversies
about Japan's rice policies were raised, particularly in that period. The
first centred on the effectiveness of the price regulation policies in
stabilizing rice prices and farmers' incomes. The second involved the
newspapers' arguments that the emergency imports harmed other countries,
especially developing countries. These controversies were examined with a
world trade computable general equilibrium model.
Journal: Applied Economics
Pages: 1051-1056
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246768
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246768
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1051-1056
Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yil Choi
Author-X-Name-First: Yong-Yil
Author-X-Name-Last: Choi
Title: The macroeconomic impact of foreign labour influx into the industrialized nation state and the complementary policies
Abstract:
This paper makes a numerical assessment on the macroeconomic impact of
foreign labor influx into the industrialized nation state allowing free
trade in goods but imposing an immigration quota on labor, and then
explores the complementary policies for the impact of foreign labor
influx. One of the main findings is that immigration itself brings welfare
gains only if prices are flexible, but a skill-biased intake policy can
bring a much larger welfare gain. The complementary policy options to
boost welfare gains by immigration increase are monetary expansion,
adopting foreign components more, and influencing foreign demand for
intermediate goods indirectly by inviting foreign direct investment. For
these policies to cope, the destination country should try to correct the
market structure so that prices can be flexible.
Journal: Applied Economics
Pages: 1057-1063
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246777
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246777
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1057-1063
Template-Type: ReDIF-Article 1.0
Author-Name: Benoit Dervaux
Author-X-Name-First: Benoit
Author-X-Name-Last: Dervaux
Author-Name: Gary Ferrier
Author-X-Name-First: Gary
Author-X-Name-Last: Ferrier
Author-Name: Herve Leleu
Author-X-Name-First: Herve
Author-X-Name-Last: Leleu
Author-Name: Vivian Valdmanis
Author-X-Name-First: Vivian
Author-X-Name-Last: Valdmanis
Title: Comparing French and US hospital technologies: a directional input distance function approach
Abstract:
French and US hospital technologies are compared using directional input
distance functions. The aggregation properties of the directional distance
function allow comparison of hospital industry-level performance as well
as standard firm-level performance with regard to productive efficiency.
In addition, the underlying constituents of efficiency - in the short run,
congestion and technical inefficiency, and in the long run, scale
inefficiency - are analysed by decomposing the overall measure. By virtue
of using the directional distance function, it is also possible to obtain
an estimate of a lower bound on allocative inefficiency. It is found that
French and US hospitals use quite different technologies. Long run scale
inefficiencies cause most of the French hospitals' inefficiency, while
short run technical inefficiency is the main source of overall productive
inefficiency in the US hospitals.
Journal: Applied Economics
Pages: 1065-1081
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246786
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246786
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1065-1081
Template-Type: ReDIF-Article 1.0
Author-Name: Shandre Mugan Thangavelu
Author-X-Name-First: Shandre Mugan
Author-X-Name-Last: Thangavelu
Author-Name: Gulasekaran Rajaguru
Author-X-Name-First: Gulasekaran
Author-X-Name-Last: Rajaguru
Title: Is there an export or import-led productivity growth in rapidly developing Asian countries? a multivariate VAR analysis
Abstract:
In contrast to cross-country studies, the paper investigates the
relationships between trade and labour productivity for nine rapidly
developing Asian countries in a time-series framework using a vector
error-correction model. Independent tests on the long-run and short-run
relationship between trade variables of exports and imports and
productivity are conducted. The results suggest that trade has an
important impact on productivity and output growth in the economy, however
it is imports that provide the important 'virtuous' link between trade and
output growth. The results indicate that exports and imports have
qualitatively different impacts on labour productivity. The long-run
result shows that there is no causal effect from exports to labour
productivity growth for Hong Kong, Indonesia, Japan, Taiwan and Thailand;
thereby suggesting that there is no export-led productivity growth in
these countries. However, significant causal effects were found from
imports to productivity growth, suggesting import-led productivity growth
in India, Indonesia, Malaysia, Philippines, Singapore and Taiwan. In
addition, the results indicate that imports tend to have greater positive
impact on productivity growth in the long run.
Journal: Applied Economics
Pages: 1083-1093
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246795
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246795
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1083-1093
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Ahamada
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Ahamada
Author-Name: Jamel Jouini
Author-X-Name-First: Jamel
Author-X-Name-Last: Jouini
Author-Name: Mohamed Boutahar
Author-X-Name-First: Mohamed
Author-X-Name-Last: Boutahar
Title: Detecting multiple breaks in time series covariance structure: a non-parametric approach based on the evolutionary spectral density
Abstract:
This article estimates the number of breaks and their locations in the
covariance structure of a series based on the evolutionary spectral
density and uses some standard information criteria. The adopted approach
is non-parametric and does not privilege a priori any modelling of the
series. One carries out a Monte Carlo analysis and an empirical
illustration using the daily return series of exchange rate euro/US dollar
to support the relevance of the theory and to produce additional insights.
The simulation results are globally adequate and show that the criteria
having heavy penalty are more accurate in the selection of the number of
breaks. The empirical results indicate that the covariance structure of
the return series considerably varies between 30 March 2000 and 6 April
2001. The unconditional volatility appears non-constant over this
interval.
Journal: Applied Economics
Pages: 1095-1101
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246803
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246803
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1095-1101
Template-Type: ReDIF-Article 1.0
Author-Name: Yih-Chyi Chuang
Author-X-Name-First: Yih-Chyi
Author-X-Name-Last: Chuang
Author-Name: Pi-Fum Hsu
Author-X-Name-First: Pi-Fum
Author-X-Name-Last: Hsu
Title: FDI, trade, and spillover efficiency: evidence from China's manufacturing sector
Abstract:
Using firm data from the 1995 Third Industrial Census of China, this
paper finds that the presence of foreign ownership has a positive and
significant effect on domestic firms' productivity. Moreover, trading with
more advanced countries helps China gain access to new technology and
information, which improves its productivity and enables it to compete in
international markets. It is found that China's imports from OECD and the
four Asian Tigers, and exports to OECD have positive effects on domestic
firms' productivity. By dividing industries into high-technology-gap and
low-technology-gap groups, it is found that the spillover effects of FDI
are larger for the low-technology-gap group than for the
high-technology-gap group. However, the estimation results of the
trade-induced technology spillover effect support the technology-gap
learning theory and the significance of importing appropriate technology.
Journal: Applied Economics
Pages: 1103-1115
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246812
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246812
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1103-1115
Template-Type: ReDIF-Article 1.0
Author-Name: Milena Pavlova
Author-X-Name-First: Milena
Author-X-Name-Last: Pavlova
Author-Name: Wim Groot
Author-X-Name-First: Wim
Author-X-Name-Last: Groot
Author-Name: Godefridus Van Merode
Author-X-Name-First: Godefridus
Author-X-Name-Last: Van Merode
Title: Willingness and ability of Bulgarian consumers to pay for improved public health care services
Abstract:
An application of the contingent valuation method to the willingness and
ability of Bulgarian consumers to pay for public health care services is
presented. The study uses data from a household survey conducted in
May-June 2000. The willingness and ability to pay for outpatient,
inpatient and dental services is investigated. A combination of interval
checklist and open-ended questions are used to elicit the
willingness-to-pay amounts. The impact of the sociodemographic
characteristics on the responses is examined by a generalized Tobit
regression. Based on the regression equation, the welfare effects of
various fee levels are simulated.
Journal: Applied Economics
Pages: 1117-1130
Issue: 10
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000246821
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000246821
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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1117-1130
Template-Type: ReDIF-Article 1.0
Author-Name: Antony Davies
Author-X-Name-First: Antony
Author-X-Name-Last: Davies
Title: Computational intermediation and the evolution of computation as a commodity
Abstract:
The consumer who purchases computational power ultimately purchases a
reduction in the time interval between the initiation and the completion
of work. This paper looks at computation as a commodity and the nascent
industry of computational intermediation, and proposes a model for the
market for computational power as distinct from the market for computers.
Some interesting results emerge. The model implies that the demand for
computation is discontinuous and that there is a lower limit to the
quantity of computation consumers will demand that is independent of the
price of power. The model identifies a range of computational powers that
could be supplied by computational intermediaries but which will not be
supplied by computer manufacturers, and suggests a model for pricing
computation.
Journal: Applied Economics
Pages: 1131-1142
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247334
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247334
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1131-1142
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Co
Author-X-Name-First: Catherine
Author-X-Name-Last: Co
Author-Name: John List
Author-X-Name-First: John
Author-X-Name-Last: List
Title: Is foreign direct investment attracted to 'knowledge creators'?
Abstract:
The effect of 'knowledge creators' on location patterns of new foreign
plants entering the USA from 1986 to 1993 is analysed. The empirical
results from a conditional logit model suggest a link exists between
knowledge bases, measured by patent counts, and the location decisions of
foreign plants. In the limit, these results imply that a 1% increase in
patent counts is associated with an increase in the probability of
attracting a new foreign plant by as much as 1.874%.
Journal: Applied Economics
Pages: 1143-1149
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000176810
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000176810
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1143-1149
Template-Type: ReDIF-Article 1.0
Author-Name: Victor Matheson
Author-X-Name-First: Victor
Author-X-Name-Last: Matheson
Author-Name: Robert Baade
Author-X-Name-First: Robert
Author-X-Name-Last: Baade
Title: 'Death effect' on collectible prices
Abstract:
It has been widely observed that the price of art or celebrity
memorabilia rises around the time of the artist or figure's death.
Previous authors attribute this ' death effect ' primarily to expectations
on the part of collectors concerning the future supply of collectibles
relating to the public figure as in the case of a durable goods
monopolist. The observations of the sports memorabilia market suggest that
the increase in prices is instead due to a ' nostalgia effect ' as a
result of the media attention that surrounds the death of a prominent
public figure.
Journal: Applied Economics
Pages: 1151-1155
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247343
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247343
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1151-1155
Template-Type: ReDIF-Article 1.0
Author-Name: An-Sing Chen
Author-X-Name-First: An-Sing
Author-X-Name-Last: Chen
Author-Name: James Wuh Lin
Author-X-Name-First: James Wuh
Author-X-Name-Last: Lin
Title: Cointegration and detectable linear and nonlinear causality: analysis using the London Metal Exchange lead contract
Abstract:
This study applies linear and nonlinear Granger causality tests to
examine the dynamic relation between London Metal Exchange (LME) cash
prices and three possible predictors. The analysis uses matched quarterly
inventory, UK Treasury bill interest rates, futures prices and cash prices
for the commodity lead traded on the LME. The effects of cointegration on
both linear and nonlinear Granger causality tests is also examined. When
cointegration is not modelled, evidence is found of both linear and
nonlinear causality between cash prices and analysed predictor variables.
However, after controlling for cointegration, evidence of significant
nonlinear causality is no longer found. These results contribute to the
empirical literature on commodity price forecasting by highlighting the
relationship between cointegration and detectable linear and nonlinear
causality. The importance of interest rate and inventory as well as
futures price in forecasting cash prices is also illustrated. Failure to
detect significant nonlinearity after controlling for cointegration may
also go some way to explaining the reason for the disappointing
forecasting performances of many nonlinear models in the general finance
literature. It may be that the variables are correct, but the functional
form is overly complex and a standard VAR or VECM may often apply.
Journal: Applied Economics
Pages: 1157-1167
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247352
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247352
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1157-1167
Template-Type: ReDIF-Article 1.0
Author-Name: Jan van Dalen
Author-X-Name-First: Jan
Author-X-Name-Last: van Dalen
Author-Name: Ben Bode
Author-X-Name-First: Ben
Author-X-Name-Last: Bode
Title: Quality-corrected price indices: the case of the Dutch new passenger car market, 1990-1999
Abstract:
Market dynamics and technological developments constitute a major
challenge to the proper measurement of the price evolution of durable
goods. In this study, hedonic methods are used to estimate
quality-corrected price indices of new passenger cars in the Netherlands,
1990-1999. Use is made of a huge set of price, quantity and quality
information about 11,000 car models, obtained from different sources.
During the observation period the nominal price level of all available car
models increased about 20% on average, while the shares of car models with
airbags, tinted glass and power steering increased from almost nothing to
about 90%. Matched model price indices and the official CPI for new
passenger cars, which partially account for quality-adjustments, estimate
the price increase to be equal to 10.6-14.2% respectively 11.2% for the
1990-1999 period. By contrast, the hedonic Fisher-like price indices based
on the preferred annually estimated brand-weighted semi-log hedonic model,
lead to price changes varying from + 2.3% to - 3.4% (depending on the
choice of weight variable, and the use of fixed or varying reference
periods in the index construction) and thereby fall 8.9 to 14.6 percentage
points below the official figures, over the period 1990-1999. The pooled
adjacent-years model holds an intermediate position with a predicted
quality-corrected price decrease of 1.8% over the observation period,
which is 13.0 points below the CPI.
Journal: Applied Economics
Pages: 1169-1197
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247361
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1169-1197
Template-Type: ReDIF-Article 1.0
Author-Name: Franz Hahn
Author-X-Name-First: Franz
Author-X-Name-Last: Hahn
Title: Long-run homogeneity of labour demand. Panel evidence from OECD countries
Abstract:
This study makes an attempt to examine the long-run relationship between
the key labour market parameters of employment, aggregate output, real
product wages and labour-augmenting technical progress for a sample of 21
OECD countries covering the period from 1970 to 2000. A new panel error
correction technique is applied, which allows one to constrain the
long-run coefficients to be identical across the countries while letting
the short-run coefficients which govern the dynamics and the error
variances differ freely, respectively. Thus, this estimation approach
assumes that institutional and cultural differences, albeit causing
short-term deviations of labour demand behaviour across countries, leave
the long-run structure of the labour markets unaffected. That is to say,
the long-run equilibrium relationship between the key labour market
variables is taken to be similar across the OECD economies. The empirical
analysis shows that the long-run relationship between the key labour
market parameters is equal across the OECD countries. However, adjustment
speed of actual employment to the equilibrium is much higher in countries
with flexible labour markets, such as the USA and UK, than in countries
with rigid labour markets, such as Germany and Austria.
Journal: Applied Economics
Pages: 1199-1203
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247370
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247370
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1199-1203
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Title: Semiparametric estimation of the fractional differencing parameter in the UK industrial production index
Abstract:
The order of integration of the industrial production index in the UK is
investigated by means of semiparametric techniques in the time and in the
frequency domain. Several methods like the R\S statistic, along with
others proposed by Robinson in a number of articles are applied to various
differenced transformations of the log of the series. These methods
perform poorly when using the time domain approaches, however, when using
the frequency domain, the results are fairly conclusive. Evidence is found
of a unit root at the zero frequency in the logged series whether or not
the series is monthly seasonally differenced first.
Journal: Applied Economics
Pages: 1205-1217
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247389
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247389
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1205-1217
Template-Type: ReDIF-Article 1.0
Author-Name: M. Matilla-Garcia
Author-X-Name-First: M.
Author-X-Name-Last: Matilla-Garcia
Author-Name: P. Sanz
Author-X-Name-First: P.
Author-X-Name-Last: Sanz
Author-Name: F. J. Vazquez
Author-X-Name-First: F. J.
Author-X-Name-Last: Vazquez
Title: Dimension estimation with the BDS-G statistic
Abstract:
The issue of time delay has been controversial among the specialized
literature. In fact, there exist some contrasted methods to choose it. It
is the case that even though they are investigated for chaotic series,
they fail to detect which series come from a deterministic and chaotic
system. In this study a new procedure for selecting the delay time which
produces good results about the estimation of the correlation dimension in
chaotic series is introduced. The method is based upon a statistic
(BDS-G), rooted on the integral correlation function, that takes advantage
of the information contained in the data in terms of dependence, and it
uses it to choose proper delay times and embedding dimensions. The results
for the studied series, even for small data sets, are satisfactory.
Journal: Applied Economics
Pages: 1219-1223
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247398
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247398
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1219-1223
Template-Type: ReDIF-Article 1.0
Author-Name: Jose E. Bosca
Author-X-Name-First: Jose E.
Author-X-Name-Last: Bosca
Author-Name: Antonio Cutanda
Author-X-Name-First: Antonio
Author-X-Name-Last: Cutanda
Author-Name: Javier Escriba
Author-X-Name-First: Javier
Author-X-Name-Last: Escriba
Title: Rates of return to public and private capital: new estimates using nonlinear Euler equations
Abstract:
Results obtained by Otto and Voss show that public investment undertaken
in Australia over recent decades satisfies conditions for intertemporal
efficiency. This paper confirms this result, although lower output
elasticities and rates of return to private and public capital are
obtained. The reason for these results is that the earlier work is
extended by estimating the parameter related to the elasticity of
intertemporal substitution that was earlier restricted to a specific
value. In fact, it is shown here that it is possible to obtain an
economically reasonable (and statistically significant) estimate of this
parameter by assuming that the stochastic discount factor for the
representative firm is the same as for the representative consumer and
equal to a gross real interest rate.
Journal: Applied Economics
Pages: 1225-1232
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191129
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1225-1232
Template-Type: ReDIF-Article 1.0
Author-Name: Morteza Haghiri
Author-X-Name-First: Morteza
Author-X-Name-Last: Haghiri
Author-Name: James Nolan
Author-X-Name-First: James
Author-X-Name-Last: Nolan
Author-Name: Kien Tran
Author-X-Name-First: Kien
Author-X-Name-Last: Tran
Title: Assessing the impact of economic liberalization across countries: a comparison of dairy industry efficiency in Canada and the USA
Abstract:
This paper examines and compares the technical efficiency measures of
Ontario and New York dairy producers for the period 1992 to 1998. A
nonparametric stochastic frontier model is introduced to estimate
technical efficiency. The backfitting algorithm of Breiman and Friedman is
used to estimate the frontier. Empirical results indicate that during the
period of study, New York dairy farmers produced milk more efficiently
than Ontario dairy producers, but the magnitude of the difference was
small. The estimated mean technical efficiency for the former group is
0.602 as compared to 0.532 for the latter. The results also indicated that
over time, dairy farms in both regions improved their level of technical
efficiency. Furthermore, no correlation was found between farm size and
estimated technical efficiency.
Journal: Applied Economics
Pages: 1233-1243
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247406
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247406
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1233-1243
Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Hsin Huang
Author-X-Name-First: Tai-Hsin
Author-X-Name-Last: Huang
Author-Name: Mei-Hui Wang
Author-X-Name-First: Mei-Hui
Author-X-Name-Last: Wang
Title: Estimation of scale and scope economies in multiproduct banking: evidence from the Fourier flexible functional form with panel data
Abstract:
An empirical study is conducted on scale and scope economies for Taiwan's
banking industry with panel data using a Fourier flexible cost function
developed by Gallant and a translog cost function, both of which take
economic efficiency into account. It is found that the Fourier form is
more appropriate than the traditional translog form in fitting the data,
and that various efficiency measures computed using the Fourier function
are compatible with each other, while those computed using the translog
function are not. The Fourier evidence shows that sample banks continue to
enjoy economies of scale, and exhibit scope diseconomies, which indicates
that greater product diversification can reduce banking costs through
product-mix economies. Banks may benefit from further diversifying their
line of financial services.
Journal: Applied Economics
Pages: 1245-1253
Issue: 11
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000247415
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000247415
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Handle: RePEc:taf:applec:v:36:y:2004:i:11:p:1245-1253
Template-Type: ReDIF-Article 1.0
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Author-Name: Kelvin Balcombe
Author-X-Name-First: Kelvin
Author-X-Name-Last: Balcombe
Author-Name: Sophia Davidova
Author-X-Name-First: Sophia
Author-X-Name-Last: Davidova
Author-Name: Katarzyna Zawalinska
Author-X-Name-First: Katarzyna
Author-X-Name-Last: Zawalinska
Title: Determinants of technical efficiency of crop and livestock farms in Poland
Abstract:
Poland, one of the candidate countries for European Union membership, is
currently experiencing acute structural problems within its agriculture
sector. This article analyses technical efficiency and its determinants
for a panel of individual farms in Poland specialized in crop and
livestock production in 2000. Technical efficiency is estimated with
stochastic frontier analysis (SFA) and confidence intervals are
constructed. Determinants of inefficiency are also evaluated. The SFA
results are compared with results using Data Envelopment Analysis (DEA).
On average, livestock farms are more technically efficient than crop
farms. For both specializations, the size-efficiency relationship is
positive, that is large farms are more efficient. The SFA findings are
generally supported by the DEA results. Soil quality and the degree of
integration with downstream markets are highly important determinants of
efficiency. The use of factor markets (land and labour) is important for
crop farms, while livestock farms can rely on family labour and own land.
Also, education is a constraint to efficiency particularly for crop farms.
Journal: Applied Economics
Pages: 1255-1263
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000176793
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000176793
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1255-1263
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Title: Seasonal fractional components in macroeconomic time series
Abstract:
Seasonal fractional models are shown in this article to be alternative
credible ways of modelling the seasonal component in macroeconomic time
series. A testing procedure that allows one to test different orders of
integration at zero and at each of the seasonal frequencies is described.
This procedure is then applied to the Italian consumption and income
series, the results being very sensitive to the way of modelling the I(0)
disturbances.
Journal: Applied Economics
Pages: 1265-1279
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000260456
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000260456
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1265-1279
Template-Type: ReDIF-Article 1.0
Author-Name: Hsiu-Yun Lee
Author-X-Name-First: Hsiu-Yun
Author-X-Name-Last: Lee
Author-Name: Jyh-Lin Wu
Author-X-Name-First: Jyh-Lin
Author-X-Name-Last: Wu
Title: Convergence of interest rates around the Pacific Rim
Abstract:
This article applies the panel data unit root tests provided by Im,
Pesaran and Shin (Discussion paper, 1997) to examine the interest rate
convergence of small-open Asian countries with major financial centres.
With monthly data from 1988:1 to 1997:6, it was found that the nominal
interest rates of these countries converge to the US rates rather than to
Japan's. This finding is consistent with the view that the monetary
authorities of non-Japan Asian economies pegged their exchange rates
overwhelmingly to the dollar rather than the yen before the financial
crisis of 1997.
Journal: Applied Economics
Pages: 1281-1288
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000238929
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000238929
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1281-1288
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: Thomas Wahl
Author-X-Name-First: Thomas
Author-X-Name-Last: Wahl
Title: Welfare impacts of Indian apple trade policies
Abstract:
In April 2000, India eliminated the quantitative import restriction of
apples and instituted a trade barrier in the form of lower ad valorem
tariffs. This study examines the impacts of Indian trade policies on the
apple market by reviewing the government policies, discussing mathematical
and graphical analyses of trade policies, presenting estimated equations
of demand, supply, and excess supply, and providing solutions of prices,
quantities, and welfare impacts under autarky, free trade, and tariff
regimes. Given the total population of more than one billion and a vast
middle income population, and economic reforms and resulting income
growth, India has a considerable potential to increase its apple
consumption. Our study shows that under free trade, India will consume
3008 thousand metric tonnes (TMT) of apples of which 2237 TMT will be
imported. Also, free trade will increase the total welfare by Rs 29 512
million. These large gains suggest that India should liberalize apple
import barriers and move toward free trade.
Journal: Applied Economics
Pages: 1289-1294
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191886
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191886
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1289-1294
Template-Type: ReDIF-Article 1.0
Author-Name: Qiming Liu
Author-X-Name-First: Qiming
Author-X-Name-Last: Liu
Author-Name: Barry Reilly
Author-X-Name-First: Barry
Author-X-Name-Last: Reilly
Title: Income transfers of Chinese rural migrants: some empirical evidence from Jinan
Abstract:
This paper explores the determinants of migrant remittances to rural
households using data on male migrant workers drawn from the Jinan
Municipality in Shandong province in the summer of 1995. The majority of
migrants are found to retain close links with their rural households with
85% remitting some income in the 12 months preceding the survey date. The
transfers accounted for over a third of urban labour earnings. A number of
models are used to undertake the estimation of remittance functions. No
evidence of altruistic behaviour is uncovered and evidence for exchange
and coinsurance theories is mixed. Labour earnings proved the most robust
determinant of the level of remittance and the remittance/wage elasticity
calculated is found to be at the top end of the range of estimates
obtained in the literature.
Journal: Applied Economics
Pages: 1295-1313
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191101
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1295-1313
Template-Type: ReDIF-Article 1.0
Author-Name: Yair Eilat
Author-X-Name-First: Yair
Author-X-Name-Last: Eilat
Author-Name: Liran Einav
Author-X-Name-First: Liran
Author-X-Name-Last: Einav
Title: Determinants of international tourism: a three-dimensional panel data analysis
Abstract:
International tourism is a fast growing industry generating half a
trillion dollars in annual revenues and accounting for almost 10% of total
international trade, and almost half of total trade in services. Yet, it
has so far failed to receive the attention it deserves from mainstream
economics. This paper attempts to provide an initial understanding of the
determinants of international tourism. This paper claims that
international tourism, as other forms of trade in services, is driven by
unique factors of production, and may be better dealt with in a single
industry study rather than in a general equilibrium trade model. In order
to understand these determinants the world is viewed as a market of
differentiated products, and a discrete choice estimation technique is
applied to a large three-dimensional data set of tourist flows. It is
shown that a relatively simple estimation technique, combined with a rich
data set, can deliver reasonable substitution patterns. It is found, among
other things, that political risk is very important for tourism, and that
exchange rates matter mainly for tourism to developed countries. These
have exchange rate elasticity of about one.
Journal: Applied Economics
Pages: 1315-1327
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/000368404000180897
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404000180897
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1315-1327
Template-Type: ReDIF-Article 1.0
Author-Name: Roland Maude-Griffin
Author-X-Name-First: Roland
Author-X-Name-Last: Maude-Griffin
Author-Name: Roger Feldman
Author-X-Name-First: Roger
Author-X-Name-Last: Feldman
Author-Name: Douglas Wholey
Author-X-Name-First: Douglas
Author-X-Name-Last: Wholey
Title: Nash bargaining model of HMO premiums
Abstract:
This paper estimates a model of commercial HMO premiums based on Nash's
axiomatic approach to bargaining between HMOs and employers. The
bargaining models incorporate variables that measure the 'power' of the
parties to affect the division of potential gains from a contract. It is
found that an increase in the number of competing HMOs increases the
employer's bargaining power and leads to lower premiums, especially for
for-profit HMOs. It is also found that employers' bargaining power over
non-profit HMOs is positively related to the ratio of the HMO's
administrative expenses/total expenses.
Journal: Applied Economics
Pages: 1329-1336
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000238938
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000238938
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1329-1336
Template-Type: ReDIF-Article 1.0
Author-Name: Amir Alizadeh
Author-X-Name-First: Amir
Author-X-Name-Last: Alizadeh
Author-Name: Manolis Kavussanos
Author-X-Name-First: Manolis
Author-X-Name-Last: Kavussanos
Author-Name: David Menachof
Author-X-Name-First: David
Author-X-Name-Last: Menachof
Title: Hedging against bunker price fluctuations using petroleum futures contracts: constant versus time-varying hedge ratios
Abstract:
The effectiveness of hedging marine bunker price fluctuations in
Rotterdam, Singapore and Houston is examined using different crude oil and
petroleum future contracts traded at the New York Mercantile Exchange
(NYMEX) and the International Petroleum Exchange (IPE) in London. Using
both constant and dynamic hedge ratios, it is found that in and
out-of-sample hedging effectiveness is different across regional bunker
markets. The most effective futures instruments for out of sample hedging
of spot bunker prices in Rotterdam and Singapore are the IPE crude oil
futures, while for Houston it is the gas oil futures. Differences in
hedging effectiveness across regional markets are attributed to the
varying regional supply and demand factors in each market. In comparison
to other markets, the cross-market hedging effectiveness investigated in
the bunker market is low.
Journal: Applied Economics
Pages: 1337-1353
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000176801
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000176801
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1337-1353
Template-Type: ReDIF-Article 1.0
Author-Name: Sabine Bockem
Author-X-Name-First: Sabine
Author-X-Name-Last: Bockem
Title: Cartel formation and oligopoly structure: a new assessment of the crude oil market
Abstract:
While economic theorists regard OPEC as a perfect example of a
long-lasting cartel, energy economists strongly deny such view. Applying
the ideas of New Empirical Industrial Organization, a market description
is derived. Cartel theory and empirical evidence fit together well. Stable
long-lasting cartels can be explained only for subclasses of market models
and exactly such type of model is obtained here. A variety of different
market models is tested. OPEC and the market for crude oil is best
described by a price-leader model.
Journal: Applied Economics
Pages: 1355-1369
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191093
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1355-1369
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Jenkins
Author-X-Name-First: Michael
Author-X-Name-Last: Jenkins
Title: Purchasing power parity and the role of traded goods: evidence from EU states
Abstract:
In this paper the debate on purchasing power parity (PPP) is considered
by providing results with disaggregated price data from European
countries. The disaggregation of the price data is important because it
allows for the consideration of goods that are likely tradable (e.g.,
fruits) with goods that are not tradable (e.g., hotel rooms). The European
focus is important because these results are able to shed light on the
effect of the type of exchange rate regime, member of exchange rate
mechanism (ERM) or not.
Journal: Applied Economics
Pages: 1371-1375
Issue: 12
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191110
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191110
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Handle: RePEc:taf:applec:v:36:y:2004:i:12:p:1371-1375
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Artatrana Ratha
Author-X-Name-First: Artatrana
Author-X-Name-Last: Ratha
Title: The J-Curve: a literature review
Abstract:
Due to lag structure, currency devaluation is said to worsen the trade
balance first and improve it later resulting in a pattern that resemble
the letter J, hence the J-Curve phenomenon. Since its introduction by
Magee in 1973 (Brooking Papers on Economic Activity, 1, pp. 303-25), a
large number of studies have attempted to test the phenomenon using
different techniques and different model specifications. The results are
at best ambiguous and deserve to be collected together for the future
generation of researchers and graduate students. This paper fills such a
vacuum in the literature by reviewing the J-Curve related empirical
papers.
Journal: Applied Economics
Pages: 1377-1398
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000201794
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201794
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1377-1398
Template-Type: ReDIF-Article 1.0
Author-Name: Santiago Alvarez-Garcia
Author-X-Name-First: Santiago
Author-X-Name-Last: Alvarez-Garcia
Author-Name: Juan Prieto-Rodriguez
Author-X-Name-First: Juan
Author-X-Name-Last: Prieto-Rodriguez
Author-Name: Rafael Salas
Author-X-Name-First: Rafael
Author-X-Name-Last: Salas
Title: The evolution of income inequality in the European Union during the period 1993-1996
Abstract:
The objective of this work is to analyse the income inequality in the 15
EU countries during the convergence process to the Monetary Union, using
the information contained in the European Community Household Panel,
corresponding to the four first waves. Using the inverse second order
stochastic dominance concept, an ordering of these countries has been
carried out. Furthermore, this ranking allows one to determine if the
differences among EU country members have increased or decreased during
this particular period. Whether the inequality of income has diminished
within and between countries over time was studied. Gini's generalized
family indices proposed by Donaldson and Weymark (Journal of Economic
Theory 22: 67-86, 1980 and 29: 353-8, 1983) and Yitzhaki (International
Economic Review 24: 617-28, 1983) have been used. This allows one to test
the sensitivity of the results obtained to different degrees of inequality
aversion and to different equivalence scales, taking into account
household sizes.
Journal: Applied Economics
Pages: 1399-1408
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000206997
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000206997
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1399-1408
Template-Type: ReDIF-Article 1.0
Author-Name: Joon-Ho Hahm
Author-X-Name-First: Joon-Ho
Author-X-Name-Last: Hahm
Title: Interest rate and exchange rate exposures of banking institutions in pre-crisis Korea
Abstract:
This study empirically investigates interest rate and exchange rate
exposures of banking institutions in pre-crisis Korea. Using the
sensitivity of stock returns as a measure of the exposure, it is shown
that Korean commercial banks and merchant banking corporations had been
significantly exposed to both interest rate and exchange rate risks, and
that the subsequent profitability of commercial banks was significantly
associated with the degree of pre-crisis exposure. The evidence suggests
that, along with the negative exposure of banking institutions, the sharp
depreciation of the Korean won and high interest rates at the end of 1997
further deteriorated the banking sector's capital adequacy worsening the
financial crisis. The Korean case highlights the importance of upgrading
financial supervision and risk management practices as a precondition for
successful financial liberalization.
Journal: Applied Economics
Pages: 1409-1419
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000206979
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000206979
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1409-1419
Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Dutta
Author-X-Name-First: Dilip
Author-X-Name-Last: Dutta
Author-Name: Nasiruddin Ahmed
Author-X-Name-First: Nasiruddin
Author-X-Name-Last: Ahmed
Title: Trade liberalization and industrial growth in Pakistan: a cointegration analysis
Abstract:
Using the framework of an endogenous growth model, this study empirically
analyses the relationship between trade policies and industrial growth in
Pakistan during the period 1973-1995. The cointegration and error
correction modelling approaches have been applied. The empirical results
suggest that there exists a unique long-run relationship among the
aggregate growth function of industrial value added and its major
determinants of the real capital stock, the labour force, real exports,
the import tariff collection rate and the secondary school enrolment
ratio. The short-term dynamic behaviour of Pakistan's growth function of
industrial value added has been investigated by estimating an error
correction model in which the error correction term has been found to be
correctly signed and statistically significant.
Journal: Applied Economics
Pages: 1421-1429
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000206951
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000206951
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1421-1429
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Nell
Author-X-Name-First: Kevin
Author-X-Name-Last: Nell
Title: The structuralist theory of imported inflation: an application to South Africa
Abstract:
This study emphasizes the importance of identifying the origin of
inflation in the present context of inflation targeting by many emerging
market and transition economies. The analysis shows, based on South
African data, how structural (supply) and demand inflation can be
distinguished. The results indicate that South Africa's inflation
experience between 1973q1 and 1998q4 is characterized by two monetary
regimes. During the first regime (1973q1-1984q4) the long-run cause of
inflation is demand-pull. The second regime (1987q1-1998q4) represents
major changes to structural ('imported') and cost-push inflation. The
two-year period 1985-1986 signifies structural change from the first to
the second regime. Moreover, the results in the second regime remain
robust when the inflation model is subjected to 'new' out-of-sample data
until 2001q2. Evidence of structural ('imported') inflation in the second
regime suggests that inflation should not entirely be squeezed out of the
system nor should it necessarily be kept at the lowest possible level,
because some inflation may be regarded as the natural by-product of the
growth and development process. South Africa's inflation experience points
to several lessons for existing (and potential) emerging market and
transition economies with some form of inflation targeting.
Journal: Applied Economics
Pages: 1431-1444
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000204467
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000204467
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1431-1444
Template-Type: ReDIF-Article 1.0
Author-Name: Seung-Jun Kwak
Author-X-Name-First: Seung-Jun
Author-X-Name-Last: Kwak
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Author-Name: Chan-Jun Kim
Author-X-Name-First: Chan-Jun
Author-X-Name-Last: Kim
Title: Measuring the economic benefits of recycling: the case of the waste agricultural film in Korea
Abstract:
Recently increase of the waste agricultural film (WAF) raises the loss of
the resources and produces the environmental damage in Korea. The Korean
government has established the basic plan for increasing the recycling
rate and abating the environmental damage. The objective of this paper is
to estimate the economic benefits attached to the policy of recycling the
WAF using contingent valuation method, aiming to provide policy-makers
with useful information to make an informed public decision in recycling
the WAF. The overall results show that the respondents well accepted the
contingent market and would be willing to pay a significant amount for the
proposed policy of recycling the WAF. The mean willingness to pay and the
truncated mean willingness to pay per household were 4641 Korean won (US$
3.6) and 5730 Korean won (US$ 4.4), respectively. Total economic benefits
for the population amounted to approximately 14.33 billion Korean won (US$
11.02 million) per year. This quantitative information can be used in
cost-benefit analysis of the policy of recycling the WAF.
Journal: Applied Economics
Pages: 1445-1453
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000206988
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000206988
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1445-1453
Template-Type: ReDIF-Article 1.0
Author-Name: B. Gill de Albornoz Noguer
Author-X-Name-First: B. Gill de Albornoz
Author-X-Name-Last: Noguer
Author-Name: M. Illueca Munoz
Author-X-Name-First: M. Illueca
Author-X-Name-Last: Munoz
Title: Comparing abnormal accruals models: a non-parametric approach
Abstract:
The purpose of this study is to compare the distribution of discretionary
accruals produced by the Standard and Modified Jones models using a
non-parametric approach. Evidence is provided that discretionary accruals
produced by the two models have an almost identical distribution.
Moreover, it is found that whether or not an intercept is included in the
model produces more intra-distribution mobility than the use of the
standard or the modified version of the model.
Journal: Applied Economics
Pages: 1455-1460
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000204449
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000204449
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1455-1460
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Adam
Author-X-Name-First: Christopher
Author-X-Name-Last: Adam
Author-Name: Michael Goujon
Author-X-Name-First: Michael
Author-X-Name-Last: Goujon
Author-Name: Sylviane Guillaumont Jeanneney
Author-X-Name-First: Sylviane Guillaumont
Author-X-Name-Last: Jeanneney
Title: The transactions demand for money in the presence of currency substitution: evidence from Vietnam
Abstract:
Currency substitution - the use of foreign money to finance transactions
between domestic residents - is widespread in low income and transition
economies. Traditionally, however, empirical models of the demand for
money tend to concentrate on the portfolio motive for holding foreign
currency, while maintaining the assumption that the income elasticity of
demand for domestic money is invariant to the degree of currency
substitution. A simple re-specification of the demand for money is offered
which more accurately reflects the process of currency substitution by
allowing for a variable income elasticity of demand for domestic money.
This specification is estimated for Vietnam in the 1990s. Using a standard
cointegration framework evidence is found for currency substitution only
in the long-run but well-defined wealth effects operating in the
short-run.
Journal: Applied Economics
Pages: 1461-1470
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/000368404200029839
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200029839
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1461-1470
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Soderlind
Author-X-Name-First: Paul
Author-X-Name-Last: Soderlind
Title: What if the Fed had been an inflation nutter?
Abstract:
A structural rational expectations model of US monetary policy is used to
make a counterfactual experiment of a strongly inflation averse Federal
Reserve Bank. Results for US interest rates, output, and inflation over
1965-1999 are discussed.
Journal: Applied Economics
Pages: 1471-1473
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000201820
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201820
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1471-1473
Template-Type: ReDIF-Article 1.0
Author-Name: Mike Smet
Author-X-Name-First: Mike
Author-X-Name-Last: Smet
Title: Multi-product costs and standby capacity derived from queuing theory: the case of Belgian hospitals
Abstract:
Empirical hospital cost function studies can be divided into two
categories: studies estimating traditional multi-product cost functions
and studies including demand uncertainty (assuming that hospitals provide
standby capacity to cope with uncertain demand and stressing that the
relationship between the uncertain demand, excess capacity and costs
should be investigated). Most studies include (the inverse of) the
occupancy rate in a relatively basic cost function. The first contribution
of this paper is to incorporate an indicator of reserve capacity into a
genuine multi-product cost function. The second contribution is to propose
an alternative indicator to proxy the reserve margin. The often used
occupancy rate has an important shortcoming: the same occupancy rate can
hide different turnaway probabilities and waiting times, obscuring the
true degree of reservation quality. Since turnaway probabilities and
waiting times are typical queuing theory indicators, an indicator for
average waiting time (derived from queuing theory) is incorporated into a
proper multi-product cost function to capture the degree of standby
capacity into a proper multi-product cost function. The study uses 1997
data on Belgian general care hospitals to estimate a multi-product cost
function and calculate cost elasticities, marginal costs and the degree of
economies of scale. The results further show that providing standby
capacity has a significant impact on total costs.
Journal: Applied Economics
Pages: 1475-1487
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000201811
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201811
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1475-1487
Template-Type: ReDIF-Article 1.0
Author-Name: Diana Burton
Author-X-Name-First: Diana
Author-X-Name-Last: Burton
Author-Name: H. Alan Love
Author-X-Name-First: H. Alan
Author-X-Name-Last: Love
Author-Name: Gordon Rausser
Author-X-Name-First: Gordon
Author-X-Name-Last: Rausser
Title: Estimating statistical properties of political economic decisions
Abstract:
Revelation of criteria implicit in setting policy is addressed in a
political economic framework that includes identification and estimation
of unknown parameters in the presence of multiple sources of uncertainty.
Policy formation is viewed as an optimization process under which the
government maximizes a criterion function subject to market constraints. A
method for estimating political criterion function weights and their
associated standard errors over multiple time periods is presented. The
approach is illustrated with an empirical example from Japanese rice and
wheat trade policy.
Journal: Applied Economics
Pages: 1489-1499
Issue: 13
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000204458
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000204458
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Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1489-1499
Template-Type: ReDIF-Article 1.0
Author-Name: Colin Carter
Author-X-Name-First: Colin
Author-X-Name-Last: Carter
Author-Name: Xianghong Li
Author-X-Name-First: Xianghong
Author-X-Name-Last: Li
Title: Changing trade patterns in major OECD countries
Abstract:
Disaggregated trade data are used to examine changing trade patterns for
five developed economic regions: the USA, the European Union, Australia,
Canada and Japan. This study covers the 1980-1997 time period, during
which international trade for most goods faced less border protection.
Changing trade patterns are found for the USA, Japan, and the EU, while
persistent trade patterns are observed for Australia and Canada.
Classifying goods into four groups, trade patterns found in manufactured
goods were the most dynamic, and trade in bulk agricultural goods the most
persistent.
Journal: Applied Economics
Pages: 1501-1511
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217913
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217913
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1501-1511
Template-Type: ReDIF-Article 1.0
Author-Name: David Sahn
Author-X-Name-First: David
Author-X-Name-Last: Sahn
Author-Name: Ari Gerstle
Author-X-Name-First: Ari
Author-X-Name-Last: Gerstle
Title: Child allowances and allocative decisions in Romanian households
Abstract:
In this paper it is tested whether increasing child allowances will
affect the intra-household allocation of consumption, measured by child
and adult goods, holding total household resources constant. The analysis
is based on household survey data collected in Romania, where cash
payments are made to families according to the number and age of children.
Selectivity is controled for since there is the potential for
self-selection bias in terms of the level of child allowances received.
The findings suggest that holding total household resources constant,
child allowances increase demand for child goods and calories and reduce
demand for adult goods.
Journal: Applied Economics
Pages: 1513-1521
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217986
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217986
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1513-1521
Template-Type: ReDIF-Article 1.0
Author-Name: George Ford
Author-X-Name-First: George
Author-X-Name-Last: Ford
Author-Name: John Jackson
Author-X-Name-First: John
Author-X-Name-Last: Jackson
Title: Demand elasticities for international message telephone service
Abstract:
Using a point-to-point model of toll demand, this paper provides
estimates of own-price demand elasticities for international message
telephone service. The study improves on previous studies by using more
recent data and endogenizing price. Consistent with earlier studies, the
demand for IMTS is found to be price inelastic, about -0.28 on average, in
the short-run and near unitary elastic, -1.04 on average, in the long run.
Both the level and the elasticity of demand are found to be positively
related to the size of the telephone network. The own-price elasticity of
demand for a select group of countries is provided.
Journal: Applied Economics
Pages: 1523-1527
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000269439
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269439
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1523-1527
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Rafferty
Author-X-Name-First: Matthew
Author-X-Name-Last: Rafferty
Author-Name: Mark Funk
Author-X-Name-First: Mark
Author-X-Name-Last: Funk
Title: Demand shocks and firm-financed R&D expenditures
Abstract:
Business cycles might affect firms' ability and incentive to perform R&D.
Firms finance most R&D activities out of cash flow so when cash flow
decreases the funds available for R&D also decreases. This limits the
ability of firms to perform R&D, potentially leading to reduced R&D
expenditures during recessions. However, business cycles also influence
the incentive to perform R&D. The opportunity cost of funds devoted to R&D
falls during recessions since the return on production will likely be
lower than during an expansion. During recessions, this provides firms
with an incentive to redistribute an existing pool of funds away from
production and towards R&D projects. This paper tests whether the business
cycle influences the incentive and ability of firms to engage in R&D
activities, in particular examining whether the response is symmetric
across the business cycle.
Journal: Applied Economics
Pages: 1529-1536
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217959
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217959
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1529-1536
Template-Type: ReDIF-Article 1.0
Author-Name: Francis Greene
Author-X-Name-First: Francis
Author-X-Name-Last: Greene
Author-Name: Kevin Mole
Author-X-Name-First: Kevin
Author-X-Name-Last: Mole
Title: Tracking Euro preparations amongst UK SMEs
Abstract:
This paper tracks levels of Euro preparations by UK SMEs with trade links
with the Euro currency area using two surveys of the same cross-sectional
dataset. The first study was conducted soon after the initial launch of
the Euro in 1999. The second study, using the same SMEs, sought to see how
Euro preparations had changed by 2002 following the introduction of Euro
notes and coins. At the univariate level, the results showed that the
proportion of SMEs that were totally prepared increased from 31% to 44.3%
whilst the proportion not prepared has also increased from 8.9% to 12.2%.
The multivariate results show that directly trading manufacturers with a
parent in the Euro area or who are seeking to acquire another company are
more likely to have partially prepared for the Euro, which suggests a
compliant ('just another foreign currency') rather than a strategic
approach to the Euro. Trade links do not explain all the differences:
incorporated manufacturing firms are significantly more likely to be
partially prepared and less likely to be completely unprepared, indicating
a possible impact of firm capabilities and sectoral differences. Firms
looking to acquire others was the only significant business strategy
variable.
Journal: Applied Economics
Pages: 1537-1546
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217968
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217968
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1537-1546
Template-Type: ReDIF-Article 1.0
Author-Name: Nowak-Lehmann Felicitas
Author-X-Name-First: Nowak-Lehmann
Author-X-Name-Last: Felicitas
Title: Different approaches of modelling reaction lags: how do Chilean manufacturing exports react to movements of the real exchange rate?
Abstract:
This study examines the relationship between export supply and the real
exchange rate using annual Chilean data for the period 1960-1996. The
hypotheses to be tested are first, that the real exchange rate does matter
for the supply of exports - contrary to studies relying on quarterly data
- and second, that the impact of a real depreciation only ceases to be
positive and significant after about two-three years. Four different
distributed lag models were considered as potentially adequate and useful
to depict the impact of the real exchange rate over time. Even though all
four models assumed different underlying lag structures, they all point to
the importance of maintaining a competitive real exchange rate over time.
The transfer function model is particularly well suited in shaping any lag
structure in that it is not presumptive in form.
Journal: Applied Economics
Pages: 1547-1560
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000269448
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269448
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1547-1560
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Castaner
Author-X-Name-First: Juan
Author-X-Name-Last: Castaner
Author-Name: Jorge Onrubia
Author-X-Name-First: Jorge
Author-X-Name-Last: Onrubia
Author-Name: Raquel Paredes
Author-X-Name-First: Raquel
Author-X-Name-Last: Paredes
Title: Evaluating social welfare and redistributive effects of Spanish personal income tax reform
Abstract:
Spain has recently concluded a process of wide-ranging reform of its
personal income tax (IRPF), in force since 1992. The new IRPF is
applicable from 1999 onward. The aim of this article is to analyse the
implications of this tax reform for the distribution of personal income,
and additionally to provide a comparative evaluation in terms of social
welfare of both taxes. Empirical analysis is performed by a simulation
exercise, employing the microdata contained in the Institute of Fiscal
Studies' IRPF Panel of Taxpayers. The analysis shows that the new IRPF
induces a redistributive effect slightly lower than the old IRPF. The
greater redistributive potential of the progressive structure of the new
tax proves to be insufficient to compensate for the contrary effect caused
by reduction in the level of tax liability. However, this new tax
unambigously permits, in an inequality-adverse society, a higher level of
social welfare than that attained by the old tax.
Journal: Applied Economics
Pages: 1561-1568
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/003684042000269457
File-URL: http://www.tandfonline.com/doi/abs/10.1080/003684042000269457
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1561-1568
Template-Type: ReDIF-Article 1.0
Author-Name: Lata Gangadharan
Author-X-Name-First: Lata
Author-X-Name-Last: Gangadharan
Title: Analysis of prices in tradable emission markets: an empirical study of the regional clean air incentives market in Los Angeles
Abstract:
The Regional Clean Air Incentives Market is an emissions trading
programme, which is expected to help in reducing oxides of nitrogen and
sulphur from stationary sources in the Los Angeles area. This paper uses
econometric techniques to determine the factors that can explain the
development of the price of emission permits. By controlling for various
characteristics of the trades, the regression results allow one to isolate
the impact of each factor and conduct a detailed analysis of the
implications of this factor on price. The results show that the price of
permits is affected by institutional factors such as the trading rules and
regulations governing the permit programme. The permits are priced higher
in the coastal zone, higher for trades recorded in 1997 as compared to
1994 or 1995 and are affected by the trader category. Brokers are involved
in well over half of the trades and have acquired a substantial inventory
of permits. Facilities buying from brokers pay higher prices than if they
buy from another facility. The price of trades beyond 2003 is higher than
for current trades, which could be indicative of expectations of high
growth rates in the Los Angeles region or due to expectation of more
stringent regulations in the future.
Journal: Applied Economics
Pages: 1569-1582
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000269466
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269466
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1569-1582
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Title: Forecasting the real output using fractionally integrated techniques
Abstract:
The annual structure of the real GDP in the UK, France, Germany and Italy
is examined by means of fractionally integrated techniques. Using a
version of a testing procedure due to Robinson (Journal of the American
Statistical Association, 84, 1420-37, 1994), it is shown that the series
can be specified in terms of I(d ) statistical models with d higher than
1. Thus, the series are nonstationary and non-mean-reverting. The
forecasting properties of the selected models for each country are also
examined.
Journal: Applied Economics
Pages: 1583-1589
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000269475
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000269475
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1583-1589
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Wirjanto
Author-X-Name-First: Tony
Author-X-Name-Last: Wirjanto
Title: Exploring consumption-based asset pricing model with stochastic-trend forcing processes
Abstract:
Using Canadian data, the consumption-based asset pricing model is
studied, defined in terms of nondurable and durable goods consumption. A
two-stage estimation procedure is used, which takes account of the
presence of common stochastic trends in the forcing processes. This method
yields more reasonable estimates of the preference parameters than the
previous studies did, and the asset-pricing equation is not rejected by
the data. Moreover, the preference specification adopted in this paper
allows a number of useful economic information to be obtained. The
additive separability assumption and the Cobb-Douglas functional form of
the utility function are ruled complements in the sense of Edgeworth and
Pareto.
Journal: Applied Economics
Pages: 1591-1597
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217940
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217940
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1591-1597
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Title: Expectation formation mechanisms, profitability of foreign exchange trading and exchange rate volatility
Abstract:
An attempt is made to identify the expectation formation mechanism
dominating the foreign exchange market and to demonstrate that exchange
rate volatility can be attributed to the heterogeneity of traders with
respect to expectation formation. The criterion used to identify the
dominance of a particular mechanism is the profitability of trading based
on that mechanism. It is concluded that mixed and extrapolative
expectations are the dominant mechanisms, that market participants follow
some sort of a herd behaviour, and that they pay attention to the
expectations of other participants. It is also found that the
heterogeneity of market participants with respect to expectation formation
goes a long way towards explaining volatility.
Journal: Applied Economics
Pages: 1599-1606
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217977
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217977
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1599-1606
Template-Type: ReDIF-Article 1.0
Author-Name: Sonila Beliu
Author-X-Name-First: Sonila
Author-X-Name-Last: Beliu
Author-Name: Matthew Higgins
Author-X-Name-First: Matthew
Author-X-Name-Last: Higgins
Title: Fractional cointegration analysis of EU convergence
Abstract:
Traditional cointegration tests do not provide strong evidence of
convergence between EU countries. In this study, fractional cointegration
analysis is used to test for convergence between EU members. Fractional
cointegration between inflation and between long-term interest rates is
found. The results indicate that there is nominal convergence, but that
the equilibrium errors display long memory. Fractional cointegration
analysis gives no evidence of real convergence in output.
Journal: Applied Economics
Pages: 1607-1611
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000217931
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000217931
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1607-1611
Template-Type: ReDIF-Article 1.0
Author-Name: Ryan Donnar
Author-X-Name-First: Ryan
Author-X-Name-Last: Donnar
Author-Name: Keith Jakee
Author-X-Name-First: Keith
Author-X-Name-Last: Jakee
Title: Australian beer wars and pub demand: how vertical restraints improved the drinking experience
Abstract:
Recently, Australia's two largest brewers, Carlton and United Breweries
and Lion Nathan, have been aggressively competing for market share in the
state of Victoria. Among other strategies, the two breweries have
implemented vertical restraints in the form of 'extensive' agreements with
retailers and the outright purchase of pubs. A key outcome of these
purchases and agreements is the renovation of many pubs as brewers attempt
to attract increasingly sophisticated drinkers. This paper attempts to
quantify the value of these renovations and measure their associated
impact on consumers, relying on insights from the hedonic literature. A
simple, but novel approach, is used to estimate the implicit price of the
pub environment and the effects of renovations on that price.
Journal: Applied Economics
Pages: 1613-1622
Issue: 14
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191877
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191877
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Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1613-1622
Template-Type: ReDIF-Article 1.0
Author-Name: Theodore Keeler
Author-X-Name-First: Theodore
Author-X-Name-Last: Keeler
Author-Name: Teh-wei Hu
Author-X-Name-First: Teh-wei
Author-X-Name-Last: Hu
Author-Name: Michael Ong
Author-X-Name-First: Michael
Author-X-Name-Last: Ong
Author-Name: Hai-Yen Sung
Author-X-Name-First: Hai-Yen
Author-X-Name-Last: Sung
Title: The US National Tobacco Settlement: the effects of advertising and price changes on cigarette consumption
Abstract:
This paper provides an econometric analysis of the effects of cigarette
price and advertising changes stemming from the United States Tobacco
Settlement of 1998. This is done by estimation of a demand function for
cigarettes, based on data from both before and after the Settlement. The
model is estimated using monthly time series data for the period
1990-2000. Results show that the increase in cigarette prices stemming
from the Settlement reduced per capita cigarette consumption in the USA by
8.3%. However, the cigarette companies also increased advertising in the
years immediately preceding and following the Settlement. This study
estimates that this increased advertising partially offsets the effects of
the higher prices, increasing cigarette consumption by 2.7 to 4.7%, and
hence blunting the effects of the price increase by 33-57%.
Journal: Applied Economics
Pages: 1623-1629
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266829
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266829
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1623-1629
Template-Type: ReDIF-Article 1.0
Author-Name: Tom Kompas
Author-X-Name-First: Tom
Author-X-Name-Last: Kompas
Author-Name: Tuong Nhu Che
Author-X-Name-First: Tuong Nhu
Author-X-Name-Last: Che
Author-Name: R. Quentin Grafton
Author-X-Name-First: R. Quentin
Author-X-Name-Last: Grafton
Title: Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery
Abstract:
This paper provides the first ex post estimates of the effects of input
controls on technical efficiency in a fishery. Using individual vessel
data from the northern prawn fishery of Australia for the years 1990-1996
and 1994-2000, stochastic production frontiers are estimated to analyse
the efficiency impacts of input controls on engine and vessel size. The
results indicate that technical efficiency is increasing in a measure of
vessel size and engine capacity that was controlled by the regulator from
1985 to 2001, and decreasing in an unregulated input, gear headrope
length. The study shows that fishers have substituted from regulated to
unregulated inputs over the period 1990-2000 and technical efficiency has
declined coincident with increasing restrictions on vessel size and engine
capacity. The decline in technical efficiency indicates that the goal of
the regulator to increase economic efficiency has not been realized.
Journal: Applied Economics
Pages: 1631-1641
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000218561
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218561
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1631-1641
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Gomez-Plana
Author-X-Name-First: Antonio
Author-X-Name-Last: Gomez-Plana
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Title: A spatial equilibrium analysis of trade policy reforms on the world wheat market
Abstract:
Since a few countries produce most of the world's wheat, and consumption
is widespread across the world, wheat is one of the most commonly traded
agricultural commodities. In recent years, the wheat market has been going
through difficult phases as wheat prices are depressed. The fall in wheat
prices is attributed to a supply glut and restrictive trade barriers. This
study develops a large-scale spatial equilibrium trade model for wheat to
analyse the effects of removing trade barriers (tariffs and subsidies) on
each country's/region's price, supply, demand, trade, welfare, and
bilateral trade flows. The results show that trade liberalization leads to
an increase (decrease) in prices in the exporting (importing) countries.
Production and exports increase in the exporting country, and consumption
and imports increase in the importing country. Consequently, the volume of
trade also increases. The welfare of most countries rises, and thus, world
welfare also rises.
Journal: Applied Economics
Pages: 1643-1648
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266838
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1643-1648
Template-Type: ReDIF-Article 1.0
Author-Name: Anusua Datta
Author-X-Name-First: Anusua
Author-X-Name-Last: Datta
Author-Name: Sumit Agarwal
Author-X-Name-First: Sumit
Author-X-Name-Last: Agarwal
Title: Telecommunications and economic growth: a panel data approach
Abstract:
Telecommunication investment is increasingly identified as one with a
strong potential to improve economic productivity and growth. The
objective of this study is to investigate the long run relationship
between telecommunications infrastructure and economic growth, using data
from 22 OECD countries. A dynamic panel data method is used for
estimation, which corrects for omitted variables bias of single equation
cross-section regression. The 'fixed-effects' specification accounts for
country specific differences in aggregate production functions. The
results show a significant and positive correlation between
telecommunications infrastructure and growth, after controlling for a
number of other factors.
Journal: Applied Economics
Pages: 1649-1654
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000218552
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218552
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1649-1654
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Ford Brown
Author-X-Name-First: Ford
Author-X-Name-Last: Brown
Title: Kalman filter approach to estimate the demand for international reserves
Abstract:
A few studies have provided empirical support for the fact that the
demand for international reserves experienced structural instability in
1973 and 1979 due to a change in exchange rate system and oil price
shocks. Thus, under the current managed float due to exchange rate and oil
price fluctuations, coefficient estimates could be time dependent. After
showing that indeed, estimated coefficients are time dependent, the Kalman
filter estimation method is employed and the reserve demand function for
19 industrial countries estimated. The Kalman filter approach incorporates
the time-varying properties of coefficients estimates.
Journal: Applied Economics
Pages: 1655-1668
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000218543
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218543
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1655-1668
Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Mishra
Author-X-Name-First: Ashok
Author-X-Name-Last: Mishra
Author-Name: Charles Moss
Author-X-Name-First: Charles
Author-X-Name-Last: Moss
Author-Name: Kenneth Erickson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Erickson
Title: Valuing farmland with multiple quasi-fixed inputs
Abstract:
This study examines the impact of multiple quasi-fixed assets on the
imputed returns to farmland. The results indicate that the presence of
additional quasi-fixed assets causes the true shadow value of farmland to
deviate from its imputed value. The results also indicate that when the
potential existence of multiple quasi-fixed assets is explicitly modelled,
the shadow value of farmland approaches reported cash rental values.
Journal: Applied Economics
Pages: 1669-1675
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266847
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266847
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1669-1675
Template-Type: ReDIF-Article 1.0
Author-Name: J. S. Ferris
Author-X-Name-First: J. S.
Author-X-Name-Last: Ferris
Author-Name: E. G. West
Author-X-Name-First: E. G.
Author-X-Name-Last: West
Title: Economies of scale, school violence and the optimal size of schools
Abstract:
This article argues that policy in relation to education has relied too
extensively on the more easily measured costs of production to support a
common conclusion of economies of scale in school and/or district size. It
argues that there are external costs that increase with size but that can
be measured less easily that offset this case. This would imply that the
tendency within the education profession to advocate ever-larger school
sizes is premature at best. To make the case, it models the choice of
school size to emphasize that costs, such as school violence, born by both
students and their parents but not (necessarily) by education
administrators may result in school sizes that are too big from the
perspective of school users. The second and third parts of the article
introduces evidence to suggest that school violence is one of these
external costs.
Journal: Applied Economics
Pages: 1677-1684
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266856
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266856
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1677-1684
Template-Type: ReDIF-Article 1.0
Author-Name: Aamer Abu-Qarn
Author-X-Name-First: Aamer
Author-X-Name-Last: Abu-Qarn
Author-Name: Suleiman Abu-Bader
Author-X-Name-First: Suleiman
Author-X-Name-Last: Abu-Bader
Title: The validity of the ELG hypothesis in the MENA region: cointegration and error correction model analysis
Abstract:
The export-led growth (ELG) hypothesis is examined for nine Middle East
and North Africa (MENA) countries in three-variable vector autoregressive
and error correction models. When considering total exports, the results
reject the ELG hypothesis in almost all of these countries. When only
manufactured exports are examined, no support is found for ELG in
countries with relatively low shares of manufactured exports in total
merchandise exports but strong support in countries with relatively high
shares. These findings suggest that promoting exports may contribute to
economic growth only after a certain threshold of manufactured exports has
been reached.
Journal: Applied Economics
Pages: 1685-1695
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266865
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266865
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1685-1695
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Martinez-Espineira
Author-X-Name-First: Roberto
Author-X-Name-Last: Martinez-Espineira
Author-Name: Celine Nauges
Author-X-Name-First: Celine
Author-X-Name-Last: Nauges
Title: Is all domestic water consumption sensitive to price control?
Abstract:
This paper presents a model of residential water demand based on the
Stone-Geary utility function, which explicitly considers a threshold of
water that is insensitive to price and a quantity that can adapt
instantaneously to price changes. First, the threshold is assumed
constant, being then allowed to vary according to past levels of
consumption, a proxy for households' water-using equipment and habits. A
measure of the depreciation rate of habits is derived and the
effectiveness of price and non-price conservation measures are compared.
The results provide useful policy recommendations for the studied case of
Seville (Spain).
Journal: Applied Economics
Pages: 1697-1703
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000218570
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218570
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1697-1703
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmood Arai
Author-X-Name-First: Mahmood
Author-X-Name-Last: Arai
Author-Name: Mats Kinnwall
Author-X-Name-First: Mats
Author-X-Name-Last: Kinnwall
Author-Name: Peter Skogman Thoursie
Author-X-Name-First: Peter Skogman
Author-X-Name-Last: Thoursie
Title: Cyclical and causal patterns of inflation and GDP growth
Abstract:
Empirical foundations for the view that high inflation impairs GDP growth
are examined using annual data for 115 countries over the period
1960-1995. Taking into account country heterogeneity and time-specific
symmetric shocks, as well as endogeneity of inflation and dynamics of GDP
growth, dynamic panel-data models of the effects of inflation on growth
are estimated. No evidence is found supporting the view that inflation is
in general harmful to GDP growth. On the other hand, there is a negative
correlation between contemporaneous intra-country inflation and growth for
periods characterized by positive oil-price shocks.
Journal: Applied Economics
Pages: 1705-1715
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266874
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266874
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1705-1715
Template-Type: ReDIF-Article 1.0
Author-Name: J. J. Escario
Author-X-Name-First: J. J.
Author-X-Name-Last: Escario
Author-Name: J. A. Molina
Author-X-Name-First: J. A.
Author-X-Name-Last: Molina
Title: Will a special tax on tobacco reduce lung cancer mortality? Evidence for EU countries
Abstract:
This article carrys out a quantitative evaluation of the effects on the
health of smokers of increasing a special tobacco tax, using the mortality
rate from lung cancer as an indicator. To that end, it estimates two
models that relate tobacco consumption, the mortality rate and this
special tax, employing data drawn from a sample made-up of 12 EU countries
and covering the years 1983-1993. The results show that increasing the
special tax is a useful tool for reducing lung cancer mortality.
Specifically, it finds that a 10% increase will reduce the lung cancer
mortality rate by 1.21% in the first year, with such a reduction implying
the avoidance of 1707 deaths in the sample countries.
Journal: Applied Economics
Pages: 1717-1722
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266883
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266883
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1717-1722
Template-Type: ReDIF-Article 1.0
Author-Name: Kishor Sharma
Author-X-Name-First: Kishor
Author-X-Name-Last: Sharma
Title: Horizontal and vertical intra-industry trade in Australian manufacturing: does trade liberalization have any impact?
Abstract:
This paper contributes to the literature on intra-industry trade (IIT) by
disentangling such trade into horizontally and vertically differentiated
products, and investigating their determinants in the context of trade
liberalization in Australia. IIT in Australian manufacturing has increased
following trade liberalization in 1980s and is increasingly dominated by
vertically differentiated products. Industry level evidence confirms that
the failure to segregate IIT into horizontally and vertically
differentiated products produces misleading results as their determinants
differ. Also, structural changes brought about by the policy
liberalization appear to have an impact on total as well vertical IIT.
Journal: Applied Economics
Pages: 1723-1730
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000218534
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218534
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1723-1730
Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Fare
Author-X-Name-First: Rolf
Author-X-Name-Last: Fare
Author-Name: Shawna Grosskopf
Author-X-Name-First: Shawna
Author-X-Name-Last: Grosskopf
Author-Name: William Weber
Author-X-Name-First: William
Author-X-Name-Last: Weber
Title: The effect of risk-based capital requirements on profit efficiency in banking
Abstract:
The purpose of this paper is twofold: to show how to measure profit
efficiency in banking using a newly developed technique, and to use that
technique to determine the effect of risk-based capital requirements on
the profit performance of US banks. The measure of profit efficiency used
captures deviations from profit maximization arising from technical
inefficiency, caused by a lack of managerial oversight and allocative
inefficiency, which is caused by managers choosing a nonoptimal mix of
inputs and outputs. A leverage ratio constraint and a risk-weighted
capital ratio constraint are explicitly included in the model, which
allows identification of the effect on profits of those constraints. The
techniques are applied to random samples of US banks for 1990, 1992, and
1994. The results indicate that allocative inefficiency is a larger source
of profit loss than technical inefficiency and that the risk-based capital
standards have a significant effect on bank allocative efficiency.
Journal: Applied Economics
Pages: 1731-1743
Issue: 15
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000218525
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000218525
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Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1731-1743
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Author-Name: J. Matthew Tyrone
Author-X-Name-First: J. Matthew
Author-X-Name-Last: Tyrone
Title: The 'Home Grown' Presidency: empirical evidence on localism in presidential voting, 1972-2000
Abstract:
This builds upon the conceptual framework of Lewis-Beck and Rice
(American Journal of Political Science, 27, 548-56, 1983), in combination
with the empirical design of Kjar and Laband (Public Choice, 112, 143-50,
2002), to investigate home grown-ness in US presidential elections from
1972-2000. It found that, ceteris paribus, home state vote shares for US
Presidential election winners are 5.19-15.11 percentage points higher due
to the home grown-ness effect. In the eight presidential elections
analysed, this study confirms two aspects of prior work. First, the
estimate of a home grown-ness effect in presidential elections of 5.19
percentage points (on average), supports the 4 percentage point average
found by Lewis-Beck and Rice (1983). Second, that support for the winning
president monotonically increases as moves are made away from the
opponent's home territory confirms the cascading dummy variable series
approach developed by Kjar and Laband (2002).
Journal: Applied Economics
Pages: 1745-1749
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000227886
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227886
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1745-1749
Template-Type: ReDIF-Article 1.0
Author-Name: Rosella Levaggi
Author-X-Name-First: Rosella
Author-X-Name-Last: Levaggi
Author-Name: Roberto Zanola
Author-X-Name-First: Roberto
Author-X-Name-Last: Zanola
Title: Patients' migration across regions: the case of Italy
Abstract:
This article analyses patient mobility across Italian regions. A modified
gravity model of patient migration is specified and estimated using panel
observations covering mobility and other main regional quality indicators
over the period 1994-1997. Despite the high level of aggregation due to
data constraints, the empirical findings show that in Italy there is wide
scope for quality-driven mobility while income determines the quality of
the service offered.
Journal: Applied Economics
Pages: 1751-1757
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000227903
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227903
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1751-1757
Template-Type: ReDIF-Article 1.0
Author-Name: Ross Finnie
Author-X-Name-First: Ross
Author-X-Name-Last: Finnie
Title: Who moves? A logit model analysis of inter-provincial migration in Canada
Abstract:
This paper addresses the topic of inter-provincial migration in terms of
the basic question: 'Who moves?'. Panel logit models of the probability
that an individual changes his or her province of residence from one year
to the next over the 1982-1995 period are estimated using tax-based
longitudinal data. It is found that moving is (i) inversely related to the
home province's population size, presumably reflecting local economic
conditions and labour market scale effects, while language also plays an
important role; (ii) more common among residents of smaller cities, towns,
and especially rural areas than those in larger cities; (iii) negatively
related to age, marriage, and the presence of children for both men and
women; (iv) positively related to the provincial unemployment rate, the
individuals' receipt of unemployment insurance (except Entry Men), having
no market income (except for Entry Men and Entry Women), and the receipt
of social assistance (especially for men); (v) (slightly) positively
related to earnings levels (beyond the zero earnings point) for prime aged
men, but not for others; and (vi) more or less stable over time, with
men's rates declining slightly and women's holding steadier or rising
slightly, indicating a divergence in trends along gender lines.
Journal: Applied Economics
Pages: 1759-1779
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191147
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191147
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1759-1779
Template-Type: ReDIF-Article 1.0
Author-Name: Hiranya Nath
Author-X-Name-First: Hiranya
Author-X-Name-Last: Nath
Title: Relative importance of sectoral and aggregate sources of price changes
Abstract:
This paper estimates a dynamic common factor model to assess relative
importance of the aggregate and the sector-specific factors that determine
changes in the prices of individual products. It also examines how
aggregate price changes are affected by these factors. Two different
specifications of the model are estimated: the baseline model with one
aggregate factor, and a second specification with two aggregate factors.
In the one-actor model, the aggregate factor contributes little to the
movements of changes in prices, mostly of nondurable goods whereas it
seems to have important contributions to the movements of changes in
prices of commodity groups mainly used as intermediate or capital goods.
In the specification with two aggregate factors, the additional factor has
significant effects on changes in prices of 'farm products' and 'processed
foods and feeds' only. Forecast-error variance decompositions of both
aggregate and disaggregate price changes suggest that sectoral factors
account for most of the variability at short horizons while the
contributions of the aggregate factors increase as the time horizon
lengthens. The results also show that sectoral factors are not only
important for relative price changes but also have significant impact on
aggregate inflation. The estimated common factors have statistically
significant correlations with money growth and changes in the unemployment
rate.
Journal: Applied Economics
Pages: 1781-1796
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000236048
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000236048
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1781-1796
Template-Type: ReDIF-Article 1.0
Author-Name: Valdemar Smith
Author-X-Name-First: Valdemar
Author-X-Name-Last: Smith
Author-Name: Mogens Dilling-Hansen
Author-X-Name-First: Mogens
Author-X-Name-Last: Dilling-Hansen
Author-Name: Tor Eriksson
Author-X-Name-First: Tor
Author-X-Name-Last: Eriksson
Author-Name: Erik Strøjer Madsen
Author-X-Name-First: Erik Strøjer
Author-X-Name-Last: Madsen
Title: R&D and productivity in Danish firms: some empirical evidence
Abstract:
The aim of the paper is to examine the relationship between R&D capital
and productivity using microdata for Danish manufacturing firms. The
influence of factors such as ownership, innovative characteristics and
source of funding accounted for. The return to accumulated R&D capital is
estimated to be in the neighbourhood of 9-12%, whereas the short-run
effect of R&D is insignificant. Furthermore, the direct influence from
foreign ownership, source of funding accounted for, innovative
characteristics and ownership dispersion on productivity are analysed.
However, none of the factors seem to have an impact on firm productivity.
The same is the case for the indirect influence coming from interaction
with accumulated R&D capital.
Journal: Applied Economics
Pages: 1797-1806
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000227895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227895
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1797-1806
Template-Type: ReDIF-Article 1.0
Author-Name: Jenny Lye
Author-X-Name-First: Jenny
Author-X-Name-Last: Lye
Author-Name: Joe Hirschberg
Author-X-Name-First: Joe
Author-X-Name-Last: Hirschberg
Title: Alcohol consumption, smoking and wages
Abstract:
The good health of an individual is a combination of uncontrollable
factors that includes genetics and random events and controllable factors
through the regulation of activities such as smoking and drinking. Since
the work of Grossman in the 1970s, a significant relationship between
health and earnings has been predicted. In this present paper the 1995
Australian National Health Survey is used to examine simultaneously the
effects of drinking and smoking on wages. To model the interaction of
smoking with alcohol consumption separate models are fitted for smokers
and nonsmokers. These models account for potential selectivity bias
resulting from the decision to smoke, and endogeneity arising from a
potential causal relationship between earnings and alcohol consumption.
Journal: Applied Economics
Pages: 1807-1817
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001710645
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001710645
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1807-1817
Template-Type: ReDIF-Article 1.0
Author-Name: P. J. Dawson
Author-X-Name-First: P. J.
Author-X-Name-Last: Dawson
Author-Name: L. J. Hubbard
Author-X-Name-First: L. J.
Author-X-Name-Last: Hubbard
Title: Exports and economic growth in Central and East European countries during transition
Abstract:
This paper quantifies the contribution of exports to economic growth in
Central and East European countries (CEECs) during transition. Two
theoretical models are examined: the first is based on an aggregate
production function which includes exports as an additional 'input'; while
the second is based on a two-sector (exports and non-exports) model where
exports provide positive externalities in non-export production. Each
model is estimated with both fixed and random effects using panel data.
Results show that the random effects model is preferred and that exports
have a significant impact on economic growth.
Journal: Applied Economics
Pages: 1819-1824
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/000368042000241123
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368042000241123
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1819-1824
Template-Type: ReDIF-Article 1.0
Author-Name: John Leeming
Author-X-Name-First: John
Author-X-Name-Last: Leeming
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: The BSE crisis and the price of red meat in the UK
Abstract:
This paper presents estimates of price functions for beef, lamb and pork
for the UK economy which allow for the effects of the 1996 BSE crisis. The
estimates illustrate the importance of allowing for the joint endogeneity
of prices in these markets. This shown that the effects of this crisis had
a significant negative effect on the price of beef and a positive and
significant effect on the price of lamb. However, there appears to have
been little effect on the price of pork.
Journal: Applied Economics
Pages: 1825-1829
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000227868
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227868
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1825-1829
Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Dritsakis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Dritsakis
Title: Exports, investments and economic development of pre-accession countries of the European Union: an empirical investigation of Bulgaria and Romania
Abstract:
This paper attempts to analyse the relationship between exports,
investments and economic development in two pre-accession countries of the
European Union, Bulgaria and Romania. For investigation of this
relationship a multivariate autoregressive VAR model is used. The results
of cointegration analysis showed that there is one cointegrated vector
among exports, investments and economic growth for the two countries.
Granger causality tests based on error correction models (ECM) indicated
that there is a 'strong Granger causal' relation between economic growth
and exports as well as between investments and exports for the two
countries. In addition, economic development and capital accumulation in
an economy seem to have just as much of an influence on exports as exports
have on capital accumulation and economic development.
Journal: Applied Economics
Pages: 1831-1838
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001710627
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001710627
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1831-1838
Template-Type: ReDIF-Article 1.0
Author-Name: U. Ozlale
Author-X-Name-First: U.
Author-X-Name-Last: Ozlale
Author-Name: E. Yeldan
Author-X-Name-First: E.
Author-X-Name-Last: Yeldan
Title: Measuring exchange rate misalignment in Turkey
Abstract:
Turkey has embarked an extensive dis-inflation and stabilization program
in December 1999. The programme exclusively relied on a nominally pegged
(anchored) exchange rate system for dis-inflation and on fiscal austerity.
In February 2001, however, Turkey experienced a severe financial crisis
which necessiated the dismantling of the exchange rate anchor and a switch
to a regime of free float. This article proposes a new methodology to
measure exchange rate misalignment for Turkey over the period January 1992
to December 2001. In a single equation framework, the model estimates the
real exchange rate within a time varying parameter model, where a
return-to-normality assumption about the parameters is assumed. Contrary
to common belief, it is found that, except the initial four months of the
stabilization programme, the Turkish lira remained undervalued for most of
2000. Also, one observes a pattern where the lira has been overvalued
after the financial crisis of 1994 until 1998, and has displayed a
tendency of undervaluation after then.
Journal: Applied Economics
Pages: 1839-1849
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000279735
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000279735
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1839-1849
Template-Type: ReDIF-Article 1.0
Author-Name: Stanley Thompson
Author-X-Name-First: Stanley
Author-X-Name-Last: Thompson
Author-Name: P. Michael Schmitz
Author-X-Name-First: P. Michael
Author-X-Name-Last: Schmitz
Author-Name: Nobuyuki Iwai
Author-X-Name-First: Nobuyuki
Author-X-Name-Last: Iwai
Author-Name: Barry Goodwin
Author-X-Name-First: Barry
Author-X-Name-Last: Goodwin
Title: The real rate of protection: the income and insurance effects of agricultural policy
Abstract:
Agricultural price policies in developed countries aim at protecting
farmers against both low and volatile world market prices. However,
traditional indicators of protection only refer to the income (level)
effect of policy. Following other research, it is argued that public
policy can also yield an insurance (stabilizing) effect. In this paper a
way to measure these dual effects is proposed. The method is illustrated
with wheat market data for the USA and the European Union. Strong evidence
is found that the insurance effect is an important component of
protection, albeit a small one relative to the income effect. Policy
support provided higher income and lower insurance effects in the EU than
in the USA. For both markets, policy reforms in the 1990s led to
significantly reduced income effects and smaller insurance effects.
Without accounting for the influence of policy on income variability,
traditional measures of protection will understate the real rate of
protection.
Journal: Applied Economics
Pages: 1851-1858
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000279744
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000279744
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1851-1858
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Gil
Author-X-Name-First: J. M.
Author-X-Name-Last: Gil
Author-Name: B. Dhehibi
Author-X-Name-First: B.
Author-X-Name-Last: Dhehibi
Author-Name: M. Ben Kaabia
Author-X-Name-First: M. Ben
Author-X-Name-Last: Kaabia
Author-Name: A. M. Angulo
Author-X-Name-First: A. M.
Author-X-Name-Last: Angulo
Title: Non-stationarity and the import demand for virgin olive oil in the European Union
Abstract:
The aim of this study is to analyse the importation of virgin olive oil
to European Union countries, paying special attention to the Spanish
export contribution. The method used is based on the estimation of an
imports demand system. The novelty of the paper lies not in the modelling
approach but in the explicit consideration of the univariate
characteristics of series that is included in the analysis. Since prices
are non-stationary, cointegration among them has been tested. Results
indicate that they are cointegrated and that homogeneity holds. As a
result, relative prices are included in the imports demand system.
Structural change is also considered so as to account for the entrance of
both Spain and Greece into the EU during the period studied. Results
demonstrate the leadership of Spain within the EU virgin olive oil market
as well as the increasing competitiveness of Greek oil.
Journal: Applied Economics
Pages: 1859-1869
Issue: 16
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000227877
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000227877
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Handle: RePEc:taf:applec:v:36:y:2004:i:16:p:1859-1869
Template-Type: ReDIF-Article 1.0
Author-Name: Francesca Borgonovi
Author-X-Name-First: Francesca
Author-X-Name-Last: Borgonovi
Title: Performing arts attendance: an economic approach
Abstract:
This paper examines to what extent art education, prices and standard
socio-economic characteristics influence attendance at professional
performing arts events (theatre, classical music, opera, ballet and
dance). It distinguishes the influence such variables have on whether a
person participates or not, from the effect that they have on the number
of times a person decides to attend. The introduction of art education and
price variables is likely to reduce the omitted variable bias present in
previous empirical studies and improve estimations. Art education is
highly correlated with participation, while it is not equally associated
with frequency of attendance. Prices and geographical concentration are
generally not correlated with participation, however there are large
differences among art forms and economic resources appear to be relevant
in the case of classical music. Policy makers can use information on what
results can be expected from policies aimed at reducing prices or increase
art education in the population in their attempt to improve attendance and
increase access to the performing arts.
Journal: Applied Economics
Pages: 1871-1885
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000264010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000264010
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1871-1885
Template-Type: ReDIF-Article 1.0
Author-Name: Monica Auteri
Author-X-Name-First: Monica
Author-X-Name-Last: Auteri
Author-Name: Mauro Costantini
Author-X-Name-First: Mauro
Author-X-Name-Last: Costantini
Title: Is social protection a necessity or a luxury good? New multivariate cointegration panel data results
Abstract:
The aim of this paper is to test the claim that social protection is a
luxury good. Therefore, GDP elasticity of selected social protection
expenditure is estimated using a new econometric approach developed first
by Kao and Chiang (Advances in Econometrics, 15, 179-222, 2000). Time
series properties of selected social expenditure in 18 OECD countries from
1981 to 1998 are examined. Using panel data cointegration tests and OLS,
FMOLS and DOLS estimators, results were found which differ from previous
analyses reporting substantially higher income elasticities. With the
FMOLS, selected social expenditure has income elasticities smaller than
one but greater than one with the DOLS. It is noteworthy that whether
selected social expenditure is stationary or nonstationary may have
critical implications for researchers and policy makers desiring to model
and explain the impact of this expenditure on a country economic system.
Journal: Applied Economics
Pages: 1887-1898
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000291902
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291902
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1887-1898
Template-Type: ReDIF-Article 1.0
Author-Name: Alireza Dorestani
Author-X-Name-First: Alireza
Author-X-Name-Last: Dorestani
Title: Transfer price and equilibrium in multidivisional firms: an examination of divisional autonomy and central control
Abstract:
The problem faced by a firm that oversees two divisions, one of which
produces and one of which uses an intermediate good, is considered. Since
divisions have information that is not available to the centre, it is
useful to allow the divisions some autonomy in their sales and procurement
decisions. The analysis allows the centre to specify the transfer price
that must be used in trades between divisions as well as placing
restraints on their ability to trade with outside firms. In most of the
models presented in this paper, the centre cannot observe the market price
of the intermediate product, and in some models it cannot observe
divisional costs. It is shown how the centre can obtain the full
information solution in the simplest case by using a penalty factor that
encourages internal trade. However, when divisional costs are not
observable, the full information outcome is not obtainable. In this case,
the optimal value of the penalty factor implies a tradeoff between the
benefits of allowing divisions to act to take advantage of price
opportunities in outside markets and savings in transactions costs of
trades between divisions.
Journal: Applied Economics
Pages: 1899-1906
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000291911
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291911
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1899-1906
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Atkins
Author-X-Name-First: Frank
Author-X-Name-Last: Atkins
Author-Name: Milanda Chan
Author-X-Name-First: Milanda
Author-X-Name-Last: Chan
Title: Trend breaks and the fisher hypothesis in canada and the United States
Abstract:
Using the sequential estimation methodology developed by Banerjee,
Lumsdaine and Stock (Journal of Business and Economic Statistics, 10(3),
271-87, 1992), Zivot and Andrews (Journal of Business and Economic
Statistics, 10(3), 251-70, 1992) and extended by Lumsdaine and Papell
(Review of Economics and Statistics, 79(2), 212-18, 1997), empirical
evidence is found consistent with the hypothesis that the 90-day Treasury
Bill rate and the inflation rate in Canada and the US are stationary
around a deterministic trend with two breaks. When the breaks are filtered
out, the data is consistent with partial long-run adjustment of the
nominal interest rate to an inflation shock, but not of the size predicted
by the Fisher Effect.
Journal: Applied Economics
Pages: 1907-1913
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000291920
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291920
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1907-1913
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Ataullah
Author-X-Name-First: Ali
Author-X-Name-Last: Ataullah
Author-Name: Tony Cockerill
Author-X-Name-First: Tony
Author-X-Name-Last: Cockerill
Author-Name: Hang Le
Author-X-Name-First: Hang
Author-X-Name-Last: Le
Title: Financial liberalization and bank efficiency: a comparative analysis of India and Pakistan
Abstract:
This paper provides a comparative analysis of the evolution of the
technical efficiency of commercial banks in India and Pakistan during
1988-1998, a period characterized by far-reaching changes in the banking
industry brought about by financial liberalization. Data Envelopment
Analysis is applied to two alternative input-output specifications to
measure technical efficiency, and to decompose technical efficiency into
its two components, pure technical efficiency and scale efficiency. The
consistency of the estimated efficiency scores are checked by examining
their relationship with three traditional non-frontier measures of bank
performance. In addition, the relationship between bank size and technical
efficiency is examined. It is found that the overall technical efficiency
of the banking industry of both countries improved gradually over the
years, especially after 1995. Unlike public sector banks in India, public
sector banks in Pakistan witnessed improvement in scale efficiency only.
It is also found that banks are relatively more efficient in generating
earning assets than in generating income. This is attributed to the
presence of high non-performing loans. In addition, it is found that the
gap between the pure technical efficiency of different size groups has
declined over the years.
Journal: Applied Economics
Pages: 1915-1924
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/000368404200068638
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200068638
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1915-1924
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Leon-Gonzalez
Author-X-Name-First: Roberto
Author-X-Name-Last: Leon-Gonzalez
Author-Name: Daniel Montolio
Author-X-Name-First: Daniel
Author-X-Name-Last: Montolio
Title: Growth, convergence and public investment. A Bayesian model averaging approach
Abstract:
The aim of this study is twofold. First, the determinants of economic
growth are studied among a wide set of potential variables for the Spanish
provinces (NUTS3). Among others, various types of private, public and
human capital in the group of growth factors are included. Also, it is
analysed whether Spanish provinces have converged in economic terms in
recent decades. The second objective is to obtain cross-section and panel
data parameter estimates that are robust to model specification. For this
purpose, a Bayesian Model Averaging (BMA) approach is used. Bayesian
methodology constructs parameter estimates as a weighted average of linear
regression estimates for every possible combination of included variables.
The weight of each regression estimate is given by the posterior
probability of each model.
Journal: Applied Economics
Pages: 1925-1936
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000245534
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000245534
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1925-1936
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmut Yasar
Author-X-Name-First: Mahmut
Author-X-Name-Last: Yasar
Author-Name: Roderick Rejesus
Author-X-Name-First: Roderick
Author-X-Name-Last: Rejesus
Author-Name: Ilhami Mintemur
Author-X-Name-First: Ilhami
Author-X-Name-Last: Mintemur
Title: Is there evidence of creative destruction in the Turkish manufacturing sector? Lessons from a cross-industry analysis of aggregate productivity growth
Abstract:
This paper examines the Schumpeterian creative destruction process by
decomposing and analysing aggregate industry-level productivity growth in
three Turkish manufacturing industries. The results are somewhat
supportive of the Schumpeterian hypothesis given that the productivity
effects within plants contributed the most to the aggregate level
productivity growth. However, the results generally contradict the insight
that plants entering the market have higher productivity than plants that
exit the market. This supports Caballero and Hammour's (NBER Working Paper
No. 7720, 2000) arguments that institutional and market constraints may
interfere with the proper functioning of Schumpeter's creative destruction
process.
Journal: Applied Economics
Pages: 1937-1945
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/000368404200068610
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200068610
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1937-1945
Template-Type: ReDIF-Article 1.0
Author-Name: Anita Daraisami
Author-X-Name-First: Anita
Author-X-Name-Last: Daraisami
Title: Export growth slowdown and currency crisis: the Malaysian experience
Abstract:
A slowdown in export growth occurred in all East Asian economies that
were affected by the Asian currency crisis. Misaligned exchange rates have
been widely cited as a cause of the slowdown. In the Malaysian context at
least a vulnerability to the downturn in the electronic cycle could also
be a major factor leading to poor export performance. Using the US/yen
dollar rate as a proxy for exchange rate misalignment and US total new
orders for electronics as a proxy for global electronics demand,
cointegration analysis was used to establish the likely causes of a
slowdown in Malaysia's export performance. Empirical results suggest that
a unique long-run relationship exists between all three variables. The
policy implications of these results including exchange rate monitoring
and export diversification are discussed in the conclusion.
Journal: Applied Economics
Pages: 1947-1957
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000236039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000236039
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1947-1957
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Trostel
Author-X-Name-First: Philip
Author-X-Name-Last: Trostel
Author-Name: Ian Walker
Author-X-Name-First: Ian
Author-X-Name-Last: Walker
Title: Sheepskin effects in work behaviour
Abstract:
Numerous studies have documented disproportionate increases in wage rates
from receiving educational credentials, as opposed to from just years of
education. This study shows 'sheepskin effects' in hours of work that are
similar to the sheepskin effects in wage rates. Systematic sheepskin
effects are found in labour-force participation and conditional hours of
work, as well as in wage rates. Moreover, the sheepskin effects in hours
of work are apparently not simply endogenous responses to the sheepskin
effects in wage rates. Thus, sheepskin effects in earnings are much larger
than those previously shown for wage rates. The results suggest that
education is sorted more by work intentions than innate ability.
Journal: Applied Economics
Pages: 1959-1966
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000236057
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000236057
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1959-1966
Template-Type: ReDIF-Article 1.0
Author-Name: Ross Finnie
Author-X-Name-First: Ross
Author-X-Name-Last: Finnie
Author-Name: Ted Wannell
Author-X-Name-First: Ted
Author-X-Name-Last: Wannell
Title: Evolution of the gender earnings gap among Canadian university graduates
Abstract:
This paper reports the results of an empirical analysis of the gender
earnings gap among recent Canadian Bachelor's level university graduates.
The overall gap as of two years leaving university narrowed significantly
across successive cohorts of graduates, but widened significantly from two
to five years out for all groups. Differences in the explanatory variables
'explain' account for between 40% and essentially the entire gap across
the different periods, this portion rising from two to five years out and
across cohorts. By the final group, all of the gap is thus 'explained' at
the two-year point in time, and most of it is explained at the five-year
mark, meaning that labour market returns (measured in this manner) are
largely gender-neutral for the last group of graduates. Hours of work is
the single most important influence, while past work experience, job
characteristics, family status, and province of residence and language
have smaller and more mixed effects.
Journal: Applied Economics
Pages: 1967-1978
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000191138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000191138
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1967-1978
Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Borland
Author-X-Name-First: Jeff
Author-X-Name-Last: Borland
Author-Name: Joseph Hirschberg
Author-X-Name-First: Joseph
Author-X-Name-Last: Hirschberg
Author-Name: Jenny Lye
Author-X-Name-First: Jenny
Author-X-Name-Last: Lye
Title: Computer knowledge and earnings: evidence for Australia
Abstract:
This paper uses data on wage and salary workers in Australia in 1993 to
examine the relation between computer knowledge and earnings. A unique
feature of the data set that is used is detailed information on the types
and levels of computer skills possessed by individual workers. The main
objectives of the study are to contribute to understanding the magnitude
and sources of the relation between computer knowledge and earnings.
Similar to existing research it is found that there is a large and
significant return to computer knowledge, but that the magnitude of the
return is substantially reduced in regressions that include detailed
occupation controls. Using the detailed information on workers' computer
skills the main finding is that earnings are significantly positively
related to the number of types of skills and average level of skills
possessed by a worker.
Journal: Applied Economics
Pages: 1979-1993
Issue: 17
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840410001710654
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001710654
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Handle: RePEc:taf:applec:v:36:y:2004:i:17:p:1979-1993
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Groen
Author-X-Name-First: Jan
Author-X-Name-Last: Groen
Title: Corporate credit, stock price inflation and economic fluctuations
Abstract:
This study analyses the empirical interaction between real corporate
credit, real income, real stock prices, the short-term interest rate and
inflation for the Netherlands and the USA. The framework is based on a
five-variable structural vector error correction model which identifies
the permanent and temporary shocks within the system. Erratic shocks in
the real amount of corporate credit and in stock prices could potentially
have some impact on inflation in the case of the USA and on real output in
the Netherlands. However, the structural VAR analysis also shows that the
above-mentioned erratic shocks only explain a small proportion of the
variation in inflation and economic activity, and inflation objective
shifts and supply side shocks are much more important determinants for
economic fluctuations.
Journal: Applied Economics
Pages: 1995-2006
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000258251
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000258251
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:1995-2006
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Author-Name: David Berri
Author-X-Name-First: David
Author-X-Name-Last: Berri
Title: Convergence and clustering in major league baseball: the haves and have nots?
Abstract:
There appear to be two distinct views on the level of competitive balance
within Major League Baseball. One view, mostly associated with academics,
is that competition is more equal today than it ever has been. The other
view, mostly associated with the media and the industry, is that
competition is far worse today. The present paper, borrowing from the
literature on economic convergence, finds that both views are valid. More
specifically, while competitive balance has continued to improve, the
improvement has been such as to create distinct convergence clusters. A
discussion of the composition of these clusters is offered in the text.
Journal: Applied Economics
Pages: 2007-2014
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000261851
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000261851
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2007-2014
Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Almus
Author-X-Name-First: Matthias
Author-X-Name-Last: Almus
Title: Job creation through public start-up assistance?
Abstract:
This study examines the impact of German public start-up assistance
programmes administered by the Deutsche Ausgleichsbank (DtA) on the
performance of young firms. The empirical analysis is based on firms from
the ZEW Entrepreneurship Study that either received start-up loans in one
or more DtA schemes or did not receive any funding from the DtA at all.
The paper applies a non-parametric matching approach often applied by
labour market economists. The interesting success measure is the average
annual employment growth rate over a six year period and the resulting
causal effect is the difference of this measure between the group of
subsidized firms and the selected control group firms that did not receive
any DtA start-up loans. The empirical analysis shows that DtA start-up
loans significantly improve the average employment growth rate.
Journal: Applied Economics
Pages: 2015-2024
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000201802
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201802
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2015-2024
Template-Type: ReDIF-Article 1.0
Author-Name: Amit Sen
Author-X-Name-First: Amit
Author-X-Name-Last: Sen
Title: Are US macroeconomic series difference stationary or trend-break stationary?
Abstract:
This article tests for the presence of a unit-root in all time series
included in the extended Nelson-Plosser data set using the statistics
devised by Zivot and Andrews, Perron and Murray and Zivot. It specifies
the mixed model characterization of the trend-break stationary alternative
that allows for a simultaneous break in both the intercept and slope of
the trend-function. It rejects the unit-root null hypothesis for real GNP,
nominal GNP, real per capita GNP, industrial production, employment, GNP
deflator, nominal wages, interest rate and common stock prices. Use of
appropriate critical values to assess the significance of the
trend-function coefficients reveals that the slope-break should be
included in real GNP, nominal GNP, real per capita GNP, nominal wages,
interest rate and common stock prices. The results indicate that there is
less evidence against the unit-root hypothesis with the extended
Nelson-Plosser data compared to the original Nelson-Plosser data.
Journal: Applied Economics
Pages: 2025-2029
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000228696
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000228696
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2025-2029
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Bagliano
Author-X-Name-First: Fabio
Author-X-Name-Last: Bagliano
Author-Name: Alessandro Sembenelli
Author-X-Name-First: Alessandro
Author-X-Name-Last: Sembenelli
Title: The cyclical behaviour of inventories: European cross-country evidence from the early 1990s recession
Abstract:
This paper employs data for a panel of firms from France, Italy and the
UK to study the effect of the recession of the early 1990s on inventory
investment, controlling for cyclical fluctuations at the firm level. The
results clearly show some common patterns across countries, pointing to
the relevance of financial factors (namely, the level of leverage) in
propagating initial recessionary shocks. Moreover, Italian firms,
especially if 'small and young', seem more likely to suffer from a
reduction in the value of collateralizable assets possibly originated by
restrictive policy actions.
Journal: Applied Economics
Pages: 2031-2044
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000295601
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295601
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2031-2044
Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Fraquelli
Author-X-Name-First: Giovanni
Author-X-Name-Last: Fraquelli
Author-Name: Massimiliano Piacenza
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Piacenza
Author-Name: Davide Vannoni
Author-X-Name-First: Davide
Author-X-Name-Last: Vannoni
Title: Scope and scale economies in multi-utilities: evidence from gas, water and electricity combinations
Abstract:
Within the recent debate on liberalization of local public services, the
paper investigates the cost properties of a sample of Italian public
utilities providing in combination gas, water and electricity. The
estimates from a Composite Cost Function econometric model (Pulley and
Braunstein, 1992) are compared with the ones coming from other traditional
functional forms such as the Standard Translog, the Generalized Translog,
and the Separable Quadratic. The results highlight the presence of global
scope and scale economies only for multi-utilities with output levels
lower than the ones characterizing the 'median' firm. This indicates that
relatively small specialized firms would benefit from cost reductions by
evolving into multi-utilities providing similar network services such as
gas, water and electricity. However, for larger-scale utilities the
hypothesis of null cost advantages is not rejected. Thus, it is possible
that the recent diversification waves of leading companies are explained
by factors other than cost synergies, so that the welfare gains that can
be reasonably expected from such examples of horizontal integration, if
any, are likely to be very low.
Journal: Applied Economics
Pages: 2045-2057
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000245543
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000245543
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2045-2057
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Gourlay
Author-X-Name-First: Adrian
Author-X-Name-Last: Gourlay
Author-Name: Jonathan Seaton
Author-X-Name-First: Jonathan
Author-X-Name-Last: Seaton
Title: The determinants of firm diversification in UK quoted companies
Abstract:
This paper examines the role of resource-based and governance factors in
determining the boundaries of UK quoted companies, measured by both the
probability and intensity of market diversification. Using a panel of over
2000 firms for the period 1988 to 2001 it is found that firm-level
heterogeneity and industry characteristics account for the variability in
diversification behaviour and that resource-based and governance factors
interact in a complex manner not necessarily fully explained by the
theoretical literature. The results also indicate that the degree of data
aggregation has significant implications for the empirical modelling of
market diversification.
Journal: Applied Economics
Pages: 2059-2071
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000295610
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295610
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2059-2071
Template-Type: ReDIF-Article 1.0
Author-Name: George Papachristou
Author-X-Name-First: George
Author-X-Name-Last: Papachristou
Title: The British gambler's fallacy
Abstract:
People facing choices under uncertainty, and gamblers in particular, are
often subject to statistical fallacies. This paper explores the hypothesis
that if lotto players were subject to the 'gambler's fallacy', predictable
fluctuations in the number of jackpots would occur. Evidence, based on a
Poisson regression model in which the number of winning bets is
conditional on the history of draws, indicates that number selection in
the UK is only marginally affected by the history of draws.
Journal: Applied Economics
Pages: 2073-2077
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000295629
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295629
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2073-2077
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Crime rates, male youth unemployment and real income in Australia: evidence from Granger causality tests
Abstract:
This article applies Granger causality tests to examine the relationship
between seven different categories of property crime and violent crime
against the person, male youth unemployment and real male average weekly
earnings in Australia from 1964 to 2001 within a cointegration and vector
error correction framework. It is found that fraud, homicide and motor
vehicle theft are cointegrated with male youth unemployment and real male
average weekly earnings. However, there is no evidence of a long-run
relationship between either break and enter, robbery, serious assault or
stealing with male youth unemployment and real male average weekly
earnings.
Journal: Applied Economics
Pages: 2079-2095
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000261842
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000261842
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2079-2095
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Isely
Author-X-Name-First: Paul
Author-X-Name-Last: Isely
Author-Name: Matthew Roelofs
Author-X-Name-First: Matthew
Author-X-Name-Last: Roelofs
Title: Primary market and aftermarket competition in the bicycle component industry
Abstract:
This study examines the bicycle component industry. This industry is
characterized by one dominant firm, Shimano Inc., and four or five smaller
players. Firms in the component industry produce components for sale in
two related markets, the market for original equipment manufacturers (OEM)
and the component aftermarket. A unique data set containing information on
aftermarket prices and OEM market shares is used to determine whether or
not market power in the aftermarket is a function of OEM market power. The
results indicate that concentration in the OEM market is positively
related to aftermarket price, while an individual firm's OEM market share
is inversely related to aftermarket price.
Journal: Applied Economics
Pages: 2097-2102
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000258657
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000258657
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2097-2102
Template-Type: ReDIF-Article 1.0
Author-Name: Olga Alonso-Villar
Author-X-Name-First: Olga
Author-X-Name-Last: Alonso-Villar
Author-Name: Jose-MarIa Chamorro-Rivas
Author-X-Name-First: Jose-MarIa
Author-X-Name-Last: Chamorro-Rivas
Author-Name: Xulia Gonzalez-Cerdeira
Author-X-Name-First: Xulia
Author-X-Name-Last: Gonzalez-Cerdeira
Title: Agglomeration economies in manufacturing industries: the case of Spain
Abstract:
This study analyses the extent of geographical concentration of Spanish
industry between 1993 and 1999, and studies the agglomeration economies
that could underlie that concentration. The results confirm that there is
major geographic concentration in a number of industries with widely
varying characteristics, including high-tech businesses and those linked
to the provision of natural resources as well as traditional industries.
The analysis of the scope of spillovers behind this agglomeration supports
the idea that transportation costs may induce plants in some industries to
locate near their customers and suppliers. However, one cannot conclude
that this is a common fact for all industries. This study also shows that
the higher the technological level of an industry, the higher the
agglomeration it experiences. This result implies the importance of the
labour market, informational spillovers and producer services location for
the agglomeration of these industries.
Journal: Applied Economics
Pages: 2103-2116
Issue: 18
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000264029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000264029
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Handle: RePEc:taf:applec:v:36:y:2004:i:18:p:2103-2116
Template-Type: ReDIF-Article 1.0
Author-Name: Jason Winfree
Author-X-Name-First: Jason
Author-X-Name-Last: Winfree
Author-Name: Jill McCluskey
Author-X-Name-First: Jill
Author-X-Name-Last: McCluskey
Author-Name: Ron Mittelhammer
Author-X-Name-First: Ron
Author-X-Name-Last: Mittelhammer
Author-Name: Rodney Fort
Author-X-Name-First: Rodney
Author-X-Name-Last: Fort
Title: Location and attendance in major league baseball
Abstract:
This study uses a travel-cost model to analyse the attendance impacts on
Major League Baseball (MLB) of the closest substitute MLB team. It is
found that the closer two teams are, the lower attendance is at each team
relative to two teams that are farther apart. In addition, when a new team
moves into the area of an existing team, there is an additional initial
reduction in attendance for the incumbent team. This has implications for
actions aimed at changing the number of teams in MLB either by contraction
or by possible antitrust approaches that would increase the number of
teams, especially in megalopolis markets. Further, and consistent with
past demand studies, pricing is in the inelastic portion of gate demand
and fan loyalty is a significant contributor to the estimation of gate
attendance.
Journal: Applied Economics
Pages: 2117-2124
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000287664
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287664
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2117-2124
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmoud Wahab
Author-X-Name-First: Mahmoud
Author-X-Name-Last: Wahab
Title: Economic growth and government expenditure: evidence from a new test specification
Abstract:
A new test specification of Wagner's Law of Public Expenditure has been
formulated. The aim is to disentangle the effects of accelerating and
decelerating economic growth on growth in government expenditure. Two
alternative proxies for the state of the economy are experimented with.
The first defines the current state of the economy by relating it to its
historical mean growth rate, while the second defines it relative to a
pooled time-series/cross-sectional mean growth rate. This distinction is
then explicitly incorporated into an error correction model that
parameterizes the bivariate relation between government expenditure and
economic growth for alternative OECD country groupings. The results
suggest that government expenditure increases less than proportionately
with accelerating economic growth and decreases more than proportionately
with decelerating economic growth. There is only a limited support for
Wagner's Law.
Journal: Applied Economics
Pages: 2125-2135
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000306923
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000306923
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2125-2135
Template-Type: ReDIF-Article 1.0
Author-Name: Finn Roar Aune
Author-X-Name-First: Finn Roar
Author-X-Name-Last: Aune
Author-Name: Rolf Golombek
Author-X-Name-First: Rolf
Author-X-Name-Last: Golombek
Author-Name: Sverre Kittelsen
Author-X-Name-First: Sverre
Author-X-Name-Last: Kittelsen
Author-Name: Knut Einar Rosendahl
Author-X-Name-First: Knut Einar
Author-X-Name-Last: Rosendahl
Title: Liberalizing the energy markets of Western Europe - a computable equilibrium model approach
Abstract:
Using a computable equilibrium model, the short-run effects of a radical
liberalization of the West European natural gas and electricity markets
are examined. In each model country, oil, gas, coal and electricity are
produced, traded and consumed. There are world markets for oil and coal,
and well-integrated competitive markets for gas and electricity in Western
Europe. Gas and electricity are transported and traded across markets
under the assumption of ideal third-party access regimes for
transportation and limited capacities in the transportation networks. It
is found that relative to the data year 1996, radical liberalization
reduces the average end-user price of natural gas by around 20%, and the
average end-user price of electricity by around 50%. The supply of
electricity increases by around 20%, mainly due to increased coal power
production. After such liberalization, coal power emerges with the largest
market share of electricity production in Western Europe.
Journal: Applied Economics
Pages: 2137-2149
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840310001641742
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840310001641742
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2137-2149
Template-Type: ReDIF-Article 1.0
Author-Name: Aju Fenn
Author-X-Name-First: Aju
Author-X-Name-Last: Fenn
Author-Name: John Schroeter
Author-X-Name-First: John
Author-X-Name-Last: Schroeter
Title: Cigarettes and addiction information: simulating the demand effects of the tobacco industry's 'conspiracy of silence'
Abstract:
Although cigarette manufacturers were aware of the addictive properties
of nicotine as early as 1962, the information did not become available to
the US public until 1979 when the Surgeon General disclosed it (US
Department of Health, Education, and Welfare, 1979). This study simulates
the impact this information would have had on the demand for cigarettes
had it been released in 1962. The simulations build on past work by Fenn
et al. (2001) who found evidence that the release of addiction information
resulted in a structural shift in demand in 1979. In the present study,
the econometric results from Fenn et al. (2001) are used to compute
simulated time paths for state-level per capita consumption under the
hypothetical scenario involving the earlier release of the addiction
information. Using these simulated consumption paths; the projected
reductions in cigarette sales revenue are calculated. These dollar figures
provide a benchmark against which to judge the compensation amounts that
the industry must pay because of recent tobacco lawsuit settlements.
Journal: Applied Economics
Pages: 2151-2159
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000290138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000290138
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2151-2159
Template-Type: ReDIF-Article 1.0
Author-Name: Gyan Pradhan
Author-X-Name-First: Gyan
Author-X-Name-Last: Pradhan
Author-Name: Zeljan Schuster
Author-X-Name-First: Zeljan
Author-X-Name-Last: Schuster
Author-Name: Kamal Upadhyaya
Author-X-Name-First: Kamal
Author-X-Name-Last: Upadhyaya
Title: Exchange rate uncertainty and the level of investment in selected South-east Asian countries
Abstract:
The effect of real exchange rate uncertainty on aggregate private
investment in Indonesia, Malaysia, the Philippines and Thailand is
examined using time series data from 1972-2000. Since the use of
non-stationary time series data may produce spurious results, the data
series are tested for stationarity using the augmented Dickey-Fuller and
Phillips-Perron tests. After establishing the stationarity of the data
series, cointegration tests are performed. The cointegration test results
reject the hypothesis of no cointegration. Therefore, an error correction
model is developed and estimated. The estimated results point to an
inconclusive empirical relationship between real exchange rate volatility
and aggregate private investment.
Journal: Applied Economics
Pages: 2161-2165
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000282498
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000282498
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2161-2165
Template-Type: ReDIF-Article 1.0
Author-Name: C. Stoforos
Author-X-Name-First: C.
Author-X-Name-Last: Stoforos
Author-Name: G. Mergos
Author-X-Name-First: G.
Author-X-Name-Last: Mergos
Title: Modelling EU tobacco policy reform
Abstract:
Smoking and tobacco use have acquired the dimensions of an epidemic.
Recently, a decision by the European Parliament due to health concerns,
calls for an elimination of production subsidies within five years. The
purpose of this paper is to estimate the economic implications of the
reduction of protection levels and to examine whether this policy change
will act as an effective tool for less consumption. To this end, two
scenarios are examined; namely, a Baseline Scenario, which assumes
continuation of current policy measures, and a Policy Scenario where
production support is eliminated. According to the results by 2010, EU
tobacco consumption in the Baseline scenario is expected to show a modest
decline and a more significant decrease in the Policy scenario. In
addition, the EU self-sufficiency ratio is projected to decrease in the
Policy scenario by almost 14% compared to the Baseline. Therefore, with
increasing liberalization of international trade, reducing EU tobacco
supply would mostly shift tobacco production to other, mainly, developing
countries. Therefore, public policy that aims to reduce tobacco use may
need to focus on demand.
Journal: Applied Economics
Pages: 2167-2175
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/000368404200068629
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200068629
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2167-2175
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Worthington
Author-X-Name-First: Andrew
Author-X-Name-Last: Worthington
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Title: Measuring the impact of natural disasters on capital markets: an empirical application using intervention analysis
Abstract:
The impact of natural disasters on the Australian equity market is
examined. The data set employed consists of daily price and accumulation
returns over the period 31 December 1982-1 January 2002 for the All
Ordinaries Index (AOI) and a record of 42 severe storms, floods, cyclones,
earthquakes and bushfires (wildfires) during this period with an insured
loss in excess of A$5 mil. and/or total loss in excess of A$100 mil.
Autoregressive moving average (ARMA) models are used to model the returns
and the inclusion of news arrival, in the form of the natural disasters,
is specified using intervention analysis. The results indicate that
bushfires, cyclones and earthquakes have a major effect on market returns,
unlike severe storms and floods. The net effects can be positive and/or
negative with most effects being felt on the day of the event and with
some adjustment in the days that follow.
Journal: Applied Economics
Pages: 2177-2186
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000282489
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000282489
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2177-2186
Template-Type: ReDIF-Article 1.0
Author-Name: Leone Leonida
Author-X-Name-First: Leone
Author-X-Name-Last: Leonida
Author-Name: Carmelo Petraglia
Author-X-Name-First: Carmelo
Author-X-Name-Last: Petraglia
Author-Name: Luis Murillo-Zamorano
Author-X-Name-First: Luis
Author-X-Name-Last: Murillo-Zamorano
Title: Total factor productivity and the convergence hypothesis in the Italian regions
Abstract:
This article is aimed at testing the catching up hypothesis for the
Italian regions. The use of Malmquist productivity indices allows to
decompose productivity growth into technological progress and technical
efficiency change, interpreted respectively as innovation and catching up
measurements. The analysis leads to a conclusion that regional economies
diverge at a decreasing rate.
Journal: Applied Economics
Pages: 2187-2193
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000282506
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000282506
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2187-2193
Template-Type: ReDIF-Article 1.0
Author-Name: David Griffiths
Author-X-Name-First: David
Author-X-Name-Last: Griffiths
Title: The big problem of forecasting small change
Abstract:
The United States Mint recently reviewed approaches to forecasting the
demand for new coin. This paper reports on methods used to determine
fundamental attributes of the data, and uses these to help better
determine appropriate model specification in order to better plan coin
production. In particular, the debate regarding trend versus difference
stationarity in macroeconomic trending data is considered. The interest in
the present paper is limited to applying a well known unit root test
procedure to an untested macrodata set - changes in US Coin demand - to
see whether the test is useful in guiding the specification to improved
forecast performance. It is found that the forecast results are somewhat
sensitive to the way in which the data are seasonally adjusted, and
lessons learned from this 'case study' indicate that unit root tests are
useful in guiding model specification.
Journal: Applied Economics
Pages: 2195-2207
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000306932
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000306932
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2195-2207
Template-Type: ReDIF-Article 1.0
Author-Name: Mustapha Kamel Nabli
Author-X-Name-First: Mustapha Kamel
Author-X-Name-Last: Nabli
Author-Name: Marie-Ange Veganzones-Varoudakis
Author-X-Name-First: Marie-Ange
Author-X-Name-Last: Veganzones-Varoudakis
Title: How does exchange rate policy affect manufactured exports in MENA countries?
Abstract:
This paper shows that, during the 1970s and 1980s, MENA economies were
characterized by a significant overvaluation of their currency. This
overvaluation has had a cost in terms of competitiveness. To determine the
degree of overvaluation of the MENA currencies, an indicator of
misalignment was developed based on the estimation of an equilibrium
exchange rate (Edwards, Exchange Rate Misalignment in Developing
Countries, The Johns Hopkins University Press, Baltimore, 1988). The
empirical work was based on a panel of 53 developing countries, ten of
which are MENA economies. Although overvaluation decreased in the 1990s,
probably due to flexibilization of the exchange rate regime in some MENA
countries and to better macroeconomic management in others, misalignment
remained higher than in other regions. This may be explained by the MENA
countries' delay in adopting more flexible exchange rates, as well as in
reforming their economies. In terms of competitiveness, the estimation of
an export equation has shown that manufactured exports have been
significantly affected by the overvaluation of the MENA currencies.
Countries that already had a more diversified economy benefited more from
the decreased overvaluation in the 1990s. These countries also saw a
continuous rise in diversification of their manufactured exports,
resulting from the significant decline in exchange rate misalignment.
Journal: Applied Economics
Pages: 2209-2219
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000271373
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000271373
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2209-2219
Template-Type: ReDIF-Article 1.0
Author-Name: Yin Zhang
Author-X-Name-First: Yin
Author-X-Name-Last: Zhang
Author-Name: Guang Hua Wan
Author-X-Name-First: Guang Hua
Author-X-Name-Last: Wan
Title: Liquidity constraint, uncertainty and household consumption in China
Abstract:
This paper investigates the changing roles played by liquidity constraint
and uncertainty in accounting for the dynamism of Chinese household
consumption behaviour. Starting from the Euler equation-based model of
Robert Hall, a framework encompassing an array of consumption models is
developed and applied to Chinese data over the period 1961-1998. Empirical
results reveal a regime shift in the early 1980s and imply that increases
in the proportion of liquidity constrained consumers and increased
uncertainty in the post-reform period are responsible for the extremely
low consumption or high savings in China. Moreover, it is found that
interactions between liquidity constraint and uncertainty reinforce each
other's effects and lead to declines in both the level and growth of
consumption.
Journal: Applied Economics
Pages: 2221-2229
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266991
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266991
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2221-2229
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Grant Coble-Neal
Author-X-Name-First: Grant
Author-X-Name-Last: Coble-Neal
Title: A cost of living index incorporating a network effect
Abstract:
This paper constructs a cost of living index (COLI) that incorporates a
network effect. While in this instance the application is to the
telecommunications sector, the COLI are applicable more generally to
network industries. The COLI permit valid welfare comparisons to be made
by individual, region and country. Illustrative COLI estimates are
provided for selected OECD member country telecommunications market data.
Journal: Applied Economics
Pages: 2231-2235
Issue: 19
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000266982
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000266982
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:19:p:2231-2235
Template-Type: ReDIF-Article 1.0
Author-Name: Monica Oliveira
Author-X-Name-First: Monica
Author-X-Name-Last: Oliveira
Title: Modelling demand and supply influences on utilization: A flow demand model to predict hospital utilization at the small area level
Abstract:
This study outlines a model to predict hospital utilization at the small
area level within a National Health Service (NHS) institutional context.
The proposed approach departs from alternative analyses based on
utilization flows of hospital care between a local population and a
hospital. A flow demand model is outlined that relates flow demand to
utilization flows; models the interaction between hospital supply and
utilization of alternative hospitals; captures the process of demand for
hospital care, with special attention given to the role of other health
care sectors, to the organizational and institutional context of the
hospital system and to geographic variations. The flow approach partly
overcomes the problem of dealing with simultaneity of determination
between supply and demand. A two-part econometric model suitable to
estimate the flow demand model for prediction purposes is tested and
applied to the Portuguese health care system. The results show the model
to be robust and to provide key information for defining future hospital
policies at the central level.
Journal: Applied Economics
Pages: 2237-2251
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280553
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280553
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2237-2251
Template-Type: ReDIF-Article 1.0
Author-Name: Joan Costa-Font
Author-X-Name-First: Joan
Author-X-Name-Last: Costa-Font
Author-Name: Joan Gil
Author-X-Name-First: Joan
Author-X-Name-Last: Gil
Title: Social interactions and the contemporaneous determinants of individuals' weight
Abstract:
Obesity and overweight are central issues in the public health debate in
most developed countries. In this debate, some of the socio-economic
determinants of obesity and overweight are still relatively unexplored.
This paper presents an empirical examination of the possible influence of
social interactions on contemporaneous obesity and (over)underweight. A
joint estimation model for obesity and self-image is applied to a sample
for Spain taken from the European Union household panel for 1998. The
results suggest that obesity might be in part a social phenomenon
connected to individuals' social life.
Journal: Applied Economics
Pages: 2253-2263
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280562
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280562
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2253-2263
Template-Type: ReDIF-Article 1.0
Author-Name: Kellie Curry Raper
Author-X-Name-First: Kellie Curry
Author-X-Name-Last: Raper
Author-Name: Corinna Noelke
Author-X-Name-First: Corinna
Author-X-Name-Last: Noelke
Title: Determining market power exertion between buyers and sellers: are nonparametrics a viable alternative?
Abstract:
A review of recent literature reveals the development of several
deterministic non-parametric (DNP) tests of market power. The performance
of selected DNP market power tests is ascertained to determine their
usefulness as an alternative to data-hungry parametric market power tests.
This assessment is carried out through implementation of Monte Carlo
experiments using data sets from ten known market structures. Only two of
the six DNP tests appear able to satisfactorily identify market power.
Journal: Applied Economics
Pages: 2265-2274
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000281570
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281570
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2265-2274
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Bugamelli
Author-X-Name-First: Matteo
Author-X-Name-Last: Bugamelli
Author-Name: Patrizio Pagano
Author-X-Name-First: Patrizio
Author-X-Name-Last: Pagano
Title: Barriers to investment in ICT
Abstract:
This paper studies the complementarity between investment in information
and communication technologies (ICT) and the related investment in human
and organizational capital. Using firm-level data taken from a large
sample of Italian manufacturing firms, an ICT marginal product much higher
than its user cost is estimated. It is then argued that missing
complementary investments may have acted as barriers to investment in ICT.
Results support the conjecture that the marginal product excess over the
user cost is due to those firms that did not complement their ICT
investment with an increase in the human capital of their labour force and
with a reorganization of the workplace.
Journal: Applied Economics
Pages: 2275-2286
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000270031
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000270031
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2275-2286
Template-Type: ReDIF-Article 1.0
Author-Name: Lyubov Kurkalova
Author-X-Name-First: Lyubov
Author-X-Name-Last: Kurkalova
Author-Name: Catherine Kling
Author-X-Name-First: Catherine
Author-X-Name-Last: Kling
Author-Name: Jinhua Zhao
Author-X-Name-First: Jinhua
Author-X-Name-Last: Zhao
Title: Value of agricultural non-point source pollution measurement technology: assessment from a policy perspective
Abstract:
The development of accurate non-point source pollution assessment
technologies allows the implementation of more efficient policies than can
be undertaken in their absence. This study estimates the value of accurate
measurement technology by estimating the gains from implementing a more
efficient policy, one that targets agricultural non-point source emission
reductions at the field scale but requires accurate field scale
measurement technology, relative to a practice-based policy that can be
implemented in the absence of such technology. For the environmental
benefit of carbon sequestration, large cost savings are found due to
improved targeting of conservation tillage subsidies for the state of
Iowa. The ability of the government to cost discriminate is found to have
little impact on the value of accurate measurement technology.
Journal: Applied Economics
Pages: 2287-2298
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840412331313512
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331313512
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2287-2298
Template-Type: ReDIF-Article 1.0
Author-Name: Bethany Peters
Author-X-Name-First: Bethany
Author-X-Name-Last: Peters
Title: Is there a wage bonus from drinking? Unobserved heterogeneity examined
Abstract:
While the result that drinkers earn more than abstainers has been
remarkably persistent, only one paper in the literature on drinking and
earnings has been written where individual fixed effects are included.
This study improves the current literature by utilizing a much longer
panel and focuses on the low end of drinking while controlling for
unobserved heterogeneity with the inclusion of individual specific
effects. It is found that while OLS specifications yield a positive
significant coefficient on current drinking, even when a rich set of
covariates is controlled for, including individual fixed effects renders
the coefficient statistically insignificant.
Journal: Applied Economics
Pages: 2299-2315
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280526
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280526
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2299-2315
Template-Type: ReDIF-Article 1.0
Author-Name: C. Du Bois
Author-X-Name-First: C. Du
Author-X-Name-Last: Bois
Author-Name: R. Caers
Author-X-Name-First: R.
Author-X-Name-Last: Caers
Author-Name: M. Jegers
Author-X-Name-First: M.
Author-X-Name-Last: Jegers
Author-Name: C. Schepers
Author-X-Name-First: C.
Author-X-Name-Last: Schepers
Author-Name: S. De Gieter
Author-X-Name-First: S.
Author-X-Name-Last: De Gieter
Author-Name: R. Pepermans
Author-X-Name-First: R.
Author-X-Name-Last: Pepermans
Title: Agency problems and unrelated business income of non-profit organizations: an empirical analysis
Abstract:
Nonprofit organizations are traditionally assumed to dislike commercial
activities. In the USA, they are however allowed to engage in commercial
activities, but the income they derive from these activities is then
subject to the so-called 'unrelated business income tax'. If NPOs do
indeed dislike commercial income, then why do they engage in these
activities? Using a data set of 2103 US NPOs, this study suggests that the
presence of agency problems inside the organization can at least provide
an explanation for the occurrence of 'unrelated business income'.
Journal: Applied Economics
Pages: 2317-2326
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000281552
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281552
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2317-2326
Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: E. A. Selvanathan
Author-X-Name-First: E. A.
Author-X-Name-Last: Selvanathan
Title: Empirical regularities in South African consumption patterns
Abstract:
This article investigates a number of empirical regularities in the South
African consumption patterns. The data support the following empirical
regularities: (1) variability in consumption systematically exceeds the
variability in prices; (2) law of demand; (3) income flexibility is about
-0.5; (4) Engel's law; and (5) the demand hypotheses, demand homogeneity
and Slutsky symmetry are acceptable. In contrast to the findings for a
number of other countries, another important empirical regularity that
consumer's utility function is additive is rejected for the South African
consumers. Based on the implied demand elasticity estimates from the
preferred model, it is found that food, housing and medical care are
necessities, and clothing, furniture, transport and recreation are
luxuries and demand for all the commodities are price inelastic.
Journal: Applied Economics
Pages: 2327-2333
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280328
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280328
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2327-2333
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Benarroch
Author-X-Name-First: Michael
Author-X-Name-Last: Benarroch
Author-Name: Hugh Grant
Author-X-Name-First: Hugh
Author-X-Name-Last: Grant
Title: The interprovincial migration of Canadian physicians: does income matter?
Abstract:
This study applies a multinomial logit model of human-capital migration
to examine the factors influencing the movement of physicians within
Canadian provinces between 1976 and 1992. The empirical investigation
covers general practitioners and specialists (it excludes
interns/residents) between seven regions (Atlantic Canada, Quebec,
Ontario, Manitoba, Saskatchewan, Alberta and British Columbia). The
results suggest that differences in real income have a positive and
significant effect on a physician's decision to migrate form one province
to another. Provinces with the highest after tax income, highest
expenditure per physician, and highest fee-per-service rates have the
highest net rate of in-migration. Income differences are however, not the
only factor influencing a physician's choice to move. Working conditions
within a province, which we proxy with the number of hospitals beds and
health expenditures per capita, are also important factors. Likewise, the
ratio of rural to urban population, distance between the major city in
each province and provincial population all have a negative impact on a
physician's migration choice. Finally, a dummy variable is used to allow
for language differences between Quebec and the rest of the provinces and
find that language differences have a significant and negative impact on a
physician decision to migrate.
Journal: Applied Economics
Pages: 2335-2345
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000281543
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281543
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2335-2345
Template-Type: ReDIF-Article 1.0
Author-Name: Alexandra Krystalogianni
Author-X-Name-First: Alexandra
Author-X-Name-Last: Krystalogianni
Author-Name: George Matysiak
Author-X-Name-First: George
Author-X-Name-Last: Matysiak
Author-Name: Sotiris Tsolacos
Author-X-Name-First: Sotiris
Author-X-Name-Last: Tsolacos
Title: Forecasting UK commercial real estate cycle phases with leading indicators: a probit approach
Abstract:
This paper examines the significance of widely used leading indicators of
the UK economy for predicting the cyclical pattern of commercial real
estate performance. The analysis uses monthly capital value data for UK
industrials, offices and retail from the Investment Property Databank
(IPD). Prospective economic indicators are drawn from three sources
namely, the series used by the US Conference Board to construct their UK
leading indicator and the series deployed by two private organisations,
Lombard Street Research and NTC Research, to predict UK economic activity.
We first identify turning points in the capital value series adopting
techniques employed in the classical business cycle literature. Probit
models are then estimated using the leading economic indicators as
independent variables and forecast the probability of different phases of
capital values, that is, periods of declining and rising capital values.
The forecast performance of the models is tested and found to be
satisfactory. The predictability of lasting directional changes in
property performance represents a useful tool for real estate investment
decision-making.
Journal: Applied Economics
Pages: 2347-2356
Issue: 20
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280544
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280544
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2347-2356
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Fink
Author-X-Name-First: Stephen
Author-X-Name-Last: Fink
Author-Name: Alan Marco
Author-X-Name-First: Alan
Author-X-Name-Last: Marco
Author-Name: Jonathan Rork
Author-X-Name-First: Jonathan
Author-X-Name-Last: Rork
Title: Lotto nothing? The budgetary impact of state lotteries
Abstract:
Lottery revenues are often touted as an independent revenue source for
states. Using 32 years of state financial data, the fallacy of such
thinking is demonstrated. Being the first to control for the
self-selection of being a lottery state, it is found that overall tax
revenues decline with increased lottery sales. Moreover, it is discovered
that this decline is driven by a decrease in revenues from general sales
and excise taxes, which is only partially offset by increases in income
tax receipts. Such findings are attributed to a combination of behavioural
and political responses following the lottery's implementation.
Journal: Applied Economics
Pages: 2357-2367
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000271387
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000271387
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2357-2367
Template-Type: ReDIF-Article 1.0
Author-Name: Eon-Seon Rym
Author-X-Name-First: Eon-Seon
Author-X-Name-Last: Rym
Author-Name: Faik Koray
Author-X-Name-First: Faik
Author-X-Name-Last: Koray
Title: Average marginal tax rates in the UK economy
Abstract:
Using a known methodology, this paper calculates the average tax rate
(ATR) and three different average marginal tax rate (AMTR) measures for
the UK. The three different AMTR measures are greater than the ATR in the
same year because of the progressive tax system in the UK. Barro's AMTR
measure weighted by total income is greater than Barro's AMTR measure
weighted by number of returns because of the unequal distribution of
income, and Barro's AMTR measure weighted by total income exceeds Seater's
AMTR measure because total income before tax in Seater's AMTR measure is
greater than total income after tax in Barro's AMTR measure.
Journal: Applied Economics
Pages: 2369-2372
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000286106
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000286106
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2369-2372
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Creel
Author-X-Name-First: Michael
Author-X-Name-Last: Creel
Title: Modified Hausman tests for inefficient estimators
Abstract:
Widely-used estimators such as the generalized method of moments (GMM)
and quasi-maximum likelihood (QML) are not efficient in general. This
study shows how the Hausman specification test may easily be corrected to
be used with inefficient estimators. It introduces a related test that has
better power, and it points out the relationship to the GMM criterion test
of specification of overidentified models. A brief simulation illustrates
the results.
Journal: Applied Economics
Pages: 2373-2376
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000291281
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291281
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2373-2376
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Spinelli
Author-X-Name-First: Michael
Author-X-Name-Last: Spinelli
Author-Name: George Canavos†
Author-X-Name-First: George
Author-X-Name-Last: Canavos†
Author-Name: Douglas Brown
Author-X-Name-First: Douglas
Author-X-Name-Last: Brown
Title: An analysis of the variation in billing charges of medical providers: causes and implications
Abstract:
The purpose of this paper is to review the billing methodology of
physicians that participate in fee-for-service plans, and, using a data
set of billing charges, determine the significance of the variation in
fees by providers of certain kind of procedures. Providers use cost-plus
pricing and take into account the medical aspects of the services and
market forces. Using the Current Procedural Terminologies (CPT)
established by the American Medical Association, the providers define the
medical services by the six digit CPT code, and bill accordingly. The
statistical evidence shows that there is some evidence that fees of
providers who bill under the 'medicine' codes tend to exhibit more
variation in charges than other procedures.
Journal: Applied Economics
Pages: 2377-2384
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000286098
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000286098
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2377-2384
Template-Type: ReDIF-Article 1.0
Author-Name: Tomoya Suzuki
Author-X-Name-First: Tomoya
Author-X-Name-Last: Suzuki
Title: Credit channel of monetary policy in Japan: resolving the supply versus demand puzzle
Abstract:
The credit view is that a monetary tightening affects the real economy by
shifting the supply schedule of bank credit left. While bank credit
typically contracts following a monetary tightening, the financial
contraction does not necessarily mean a shift of the supply schedule.
Testing the credit view requires the identification of the shifts of the
demand and supply schedules of credit. Using an original approach, this
study shows that the credit view is supported for Japan. The credit view
is, however, composed of two different views, namely the lending view and
the balance-sheet view. While the balance-sheet view implies that the
cutback of lending has no impact on the real economy, the lending view
implies independent impacts of the cutback. Given the acceptance of the
credit view, this study further attempts to test the balance-sheet view
against the lending view.
Journal: Applied Economics
Pages: 2385-2396
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280517
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280517
File-Format: text/html
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2385-2396
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Rainey
Author-X-Name-First: Daniel
Author-X-Name-Last: Rainey
Author-Name: Olga Murova
Author-X-Name-First: Olga
Author-X-Name-Last: Murova
Title: Factors influencing education achievement
Abstract:
This study sets out to examine the factors that influence human capital
formation in predominately rural communities. The results indicated that
parents' educational attainment greatly influences the quality of
education for their children. Thus, consolidating smaller poor schools in
which the parents have limited education above primary and secondary
schools, will not likely lead to much if any improvement in students' test
scores.
Journal: Applied Economics
Pages: 2397-2404
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/00036840404200020544
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840404200020544
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2397-2404
Template-Type: ReDIF-Article 1.0
Author-Name: E. A. Selvanathan
Author-X-Name-First: E. A.
Author-X-Name-Last: Selvanathan
Author-Name: S. Selvanathan
Author-X-Name-First: S.
Author-X-Name-Last: Selvanathan
Title: Economic and demographic factors in Australian alcohol demand
Abstract:
In the last two decades, total (pure) alcohol consumption in Australia
has declined by about 31% and currently it is at the same level as it was
in the 1950s. Australians consumed about 10 litres of pure alcohol per
person in 1982 and now the level has declined to about 7 litres of pure
alcohol per person. During the last four decades, per capita beer
consumption has reached a peak of 140 litres in 1975 and has fallen to a
low 93 litres in 1999; wine consumption has increased four-fold while
spirits consumption has stayed around the same level. This paper, using
the Australian consumption data for beer, wine and spirits for the period
1956-1999, aims to explain the change in consumption patterns of beer,
wine and spirits by considering the effects due to changes in economic and
demographic factors. The results show that while income and prices
significantly influence the consumption patterns of alcohol, the
increasing Australian elderly population also plays an important role.
Journal: Applied Economics
Pages: 2405-2417
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280346
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2405-2417
Template-Type: ReDIF-Article 1.0
Author-Name: Kirsi Mukkala
Author-X-Name-First: Kirsi
Author-X-Name-Last: Mukkala
Title: Agglomeration economies in the finnish manufacturing sector
Abstract:
Regional concentration of population and economic activity is a common
phenomenon both in Finland and the other most developed countries, which
refers to the existence of agglomeration economies. Two types of economies
are usually recognized to be important: specialization (Marshall
externalities) and diversity (Jacobs externalities) economies. The former
refer to the geographical concentration of a specific industry and the
latter to the industrial diversity of the local system. This study
examines the relationship between agglomeration economies and regional
productivity in the manufacturing sector in Finland. A distinction is made
between the effects of urbanization and localization economies. The
production function method is applied to the manufacturing sub-sectors in
the 83 NUTS 4-level regions in 1995 and 1999. The results support the
regional specialization more than diversification even if some differences
can be seen between the manufacturing sub-sectors.
Journal: Applied Economics
Pages: 2419-2427
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000287655
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287655
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2419-2427
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: N. Nergiz Dincer
Author-X-Name-First: N. Nergiz
Author-X-Name-Last: Dincer
Title: The effects of exchange rate risk on economic performance: the Turkish experience
Abstract:
This study examines the effects of real exchange rate risk on the
economic performance for an emerging, small open economy: Turkey. When the
ratios of the total foreign exchange liabilities of the Central Bank of
the Republic of Turkey (CBRT) to: (1) total reserves; (2) the CBRT's
reserves; and (3) the CBRT's total Turkish lira liabilities are taken
proxy of exchange rate risk, the empirical evidence suggests that the
increase in exchange rate risk causes a depreciation in the real exchange
rate, an increase in prices and a decrease in output.
Journal: Applied Economics
Pages: 2429-2441
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000287637
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287637
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2429-2441
Template-Type: ReDIF-Article 1.0
Author-Name: Mette Wik
Author-X-Name-First: Mette
Author-X-Name-Last: Wik
Author-Name: Tewodros Aragie Kebede
Author-X-Name-First: Tewodros Aragie
Author-X-Name-Last: Kebede
Author-Name: Olvar Bergland
Author-X-Name-First: Olvar
Author-X-Name-Last: Bergland
Author-Name: Stein Holden
Author-X-Name-First: Stein
Author-X-Name-Last: Holden
Title: On the measurement of risk aversion from experimental data
Abstract:
Attitudes towards risk are measured for households in Northern Zambia
using an experimental gambling approach with real payoffs that at maximum
were equal to 30% of average total annual income per capita. The results
of the experiment show decreasing absolute risk aversion and increasing
partial risk aversion. Determinants of risk aversion are investigated
using random effects interval regression model exploiting the panel data
structure of the repeated experiments. Wealth indicator variables are
found to be significant, and partial relative risk aversion decreases as
wealth increases. Females are found to be more risk averse than males.
Journal: Applied Economics
Pages: 2443-2451
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280580
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280580
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2443-2451
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Author-Name: David Berri
Author-X-Name-First: David
Author-X-Name-Last: Berri
Title: Another look at competition: a regime-switching aproach
Abstract:
Measuring the level of competition in an industry is an empirical task
with a lengthy history. Many of the traditional measures offer a snapshot
of the industry, where the distribution of market share is examined at a
given point in time. The purpose of this inquiry is to utilize a
regime-switching model which highlights the importance of intra-industry
movement. The empirical results suggest that even in an environment where
the distribution of market share is improving, an industry can still be
persistently dominated by the same collection of leading firms.
Journal: Applied Economics
Pages: 2453-2460
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000280571
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280571
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2453-2460
Template-Type: ReDIF-Article 1.0
Author-Name: Daryl Collins
Author-X-Name-First: Daryl
Author-X-Name-Last: Collins
Author-Name: Shana Gavron
Author-X-Name-First: Shana
Author-X-Name-Last: Gavron
Title: Channels of financial market contagion
Abstract:
This study aims to fill a gap in the current literature by determining
which channels of financial contagion are the most significant in
transmitting crises between countries. Initial results, using χ2
contingency tables, indicate that there is a significant relationship
between contagion and the inflation rate and between contagion and
financial liquidity. A simultaneous comparison of the channels is then
performed using a series of best subset logit regressions. These suggest
that a combination of high inflation and an emerging market classification
form the most significant subset in increasing the probability of a
contagious event.
Journal: Applied Economics
Pages: 2461-2469
Issue: 21
Volume: 36
Year: 2004
X-DOI: 10.1080/0003684042000287628
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287628
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Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2461-2469
Template-Type: ReDIF-Article 1.0
Author-Name: M. R. Bhatia
Author-X-Name-First: M. R.
Author-X-Name-Last: Bhatia
Title: From evidence to calibration for starting point bias: willingness to pay for treated mosquito nets in Gujarat, India
Abstract:
This study uses a bidding format to assess households' willingness to pay
(WTP) for treated mosquito nets (TMNs). It tests for starting point bias
by allocating respondents randomly to three different starting bids (Rs
50, Rs 75 and Rs 100) and following this response with one further closed
bid offer and a final open-ended WTP question. There is a clear presence
of starting point bias. By undertaking a simulated market experiment
(SME), this study attempts to measure the magnitude and direction of the
bias so that the necessary calibration factor can be calculated with which
to adjust the mean willingness to pay value. It was observed that the true
mean WTP adjusted for starting point bias (Rs 56.26) is not very different
from the unadjusted mean WTP of Rs 57.38. It is concluded that the
presence of starting point bias, even in carefully designed WTP studies
using a bidding format, cannot be ruled out. However, the existence of
starting point bias itself does not reflect the magnitude of the problem.
It is recommended that future WTP studies using a bidding format not only
look for starting point bias but also attempt to measure its magnitude.
Journal: Applied Economics
Pages: 1-7
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000291317
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291317
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:1-7
Template-Type: ReDIF-Article 1.0
Author-Name: John Hey
Author-X-Name-First: John
Author-X-Name-Last: Hey
Author-Name: Jinkwon Lee
Author-X-Name-First: Jinkwon
Author-X-Name-Last: Lee
Title: Do subjects remember the past?
Abstract:
In many experiments, experimenters use the random lottery incentive
mechanism and ask many questions to each subject. That is, at the end of
the experiment, just one of the questions is picked at random, and the
subject paid on the basis of their answer to this one question. The idea
is that subjects should separate the various questions and reply to each
as if it were a separate question. This procedure is methodologically
sound if the subjects' preferences obey Expected Utility (EU) theory
(which implies a form of separation), but if they do not, this incentive
mechanism is open to criticism. Indeed many referees use this argument
against the research: they argue that subjects do not consider questions
separately. If the questions are revealed to the subjects one by one, then
the appropriate alternative hypothesis is that their behaviour evolves
with the questions. Here this hypothesis is tested: that the questions
already answered affect the answers to the subsequent questions. The
analysis shows that this is generally not the case. This finding is of
importance not only for the experimental community, but also for the wider
community of economists - who typically, when analysing economic data,
have to assume some kind of separation of present from past behaviour. The
analysis indicates that such an assumption is defensible. An experimental
defence of a procedure used widely in non-experimental empirical economics
research is provided.
Journal: Applied Economics
Pages: 9-18
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000286124
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000286124
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Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Graham
Author-X-Name-First: Daniel
Author-X-Name-Last: Graham
Author-Name: Stephen Glaister
Author-X-Name-First: Stephen
Author-X-Name-Last: Glaister
Title: Decomposing the determinants of road traffic demand
Abstract:
This study presents a decomposition of the basic fundamental determinants
of road traffic and fuel demand. A general framework is proposed as a
means of analysing the impacts of changes in prices and income on the
demand for fuel and traffic volume. The objective is to provide a general
basis for comparing different road traffic elasticity estimates and for
understanding how a variety of different factors work together to create
overall road traffic and fuel demand responses. The study emphasizes
relationships between different price and income elasticity measures and
uses estimates from the literature to evaluate the main determinants of
demand including some previously unobserved effects.
Journal: Applied Economics
Pages: 19-28
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000291263
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291263
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:19-28
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Goodhart
Author-X-Name-First: Charles
Author-X-Name-Last: Goodhart
Author-Name: Boris Hofmann
Author-X-Name-First: Boris
Author-X-Name-Last: Hofmann
Title: The IS curve and the transmission of monetary policy: is there a puzzle?
Abstract:
In this paper, the performance of the New Keynesian IS curve for the G7
countries is assessed. It is found that there is an IS puzzle for both the
purely backward-looking as well as for the forward-looking IS curve. The
real interest rate does not have a significantly negative effect on the
output gap. Based on an extended specification of the IS curve, also
including asset prices and monetary aggregates, a significantly negative
interest rate effect on aggregate demand is found for all countries. This
finding suggests that a richer specification of the IS curve in empirical
work may be necessary in order to obtain an unbiased estimate of the
effect of monetary policy on aggregate demand.
Journal: Applied Economics
Pages: 29-36
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000280355
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280355
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:29-36
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Wood
Author-X-Name-First: Andrew
Author-X-Name-Last: Wood
Title: Investment interdependence and the coordination of lumpy investments: evidence from the British brick industry
Abstract:
The brick industry is characterized by regional markets, lumpy capacity
increments and high fixed costs. In such an industry, the coordination of
rival expansions in capacity can be crucial to the profitability of those
expansions. Evidence from the British brick industry suggests that excess
investments are generally avoided, but there is little support for
existing theories to explain how this is achieved. The explanation for how
coordination failures are avoided is based on firm heterogeneity, the
regional dimension to the investment decision and the prospects for, and
consequences of, growth by acquisition.
Journal: Applied Economics
Pages: 37-49
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000287646
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000287646
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:37-49
Template-Type: ReDIF-Article 1.0
Author-Name: Severine Blaise
Author-X-Name-First: Severine
Author-X-Name-Last: Blaise
Title: On the link between Japanese ODA and FDI in China: a microeconomic evaluation using conditional logit analysis
Abstract:
This study investigates the effectiveness of Japan's official development
assistance in promoting foreign direct investments inflows in the case of
the People's Republic of China. Conditional logit analysis using province
level statistics from 1980 to 1999, shows that Japanese aid flows did have
a significant positive impact on private investors location choice even
though other profit-maximizing factors such as the level of economic
activity had a leading spillover effect. In a context of growing scarcity
of aid, the study concludes by asserting the importance of a complementary
process in which foreign aid is aimed at enhancing the development of
infrastructures, acting as a pre-requisite for future direct investments.
Finally, Japan providing an interesting case study, we stress the need for
a better cooperation between public and private sectors in development
assistance programmes.
Journal: Applied Economics
Pages: 51-55
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000281534
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281534
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:51-55
Template-Type: ReDIF-Article 1.0
Author-Name: Diane Skåtun
Author-X-Name-First: Diane
Author-X-Name-Last: Skåtun
Author-Name: Emanuela Antonazzo
Author-X-Name-First: Emanuela
Author-X-Name-Last: Antonazzo
Author-Name: Anthony Scott
Author-X-Name-First: Anthony
Author-X-Name-Last: Scott
Author-Name: Robert Elliott
Author-X-Name-First: Robert
Author-X-Name-Last: Elliott
Title: The supply of qualified nurses: a classical model of labour supply
Abstract:
The need to ensure adequate numbers of nurses is a key requirement of the
current modernization of the UK NHS. However, it is unclear how effective
wages are as an instrument to maintain or increase the nursing workforce,
both in terms of absolute numbers and in the number of whole time
equivalents. This study sets out to estimate a classical model of labour
supply for British qualified married or cohabiting nurses and midwives,
looking at both the participation decision and the hours of work supplied.
Data are from the Quarterly Labour Force Survey over the years 1999-2000.
Participation and hours of work are found to be inelastic with respect to
own wage. These results suggest that increasing the wage would only have a
moderate effect on labour supply. Interestingly, there is no significant
statistical difference between having a child of nursery age (3-4) and
having a child of school age (5-15) on participation and hours supplied.
This suggests that recent policy initiatives to increase female labour
force participation, through the provision of free nursery places, has
been successful. Preliminary analysis of a split private and public sector
sample suggests that hours supplied are completely inelastic with respect
to wages in the public sector.
Journal: Applied Economics
Pages: 57-65
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000291272
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291272
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:57-65
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Ginebri
Author-X-Name-First: Sergio
Author-X-Name-Last: Ginebri
Author-Name: Bernardo Maggi
Author-X-Name-First: Bernardo
Author-X-Name-Last: Maggi
Author-Name: Manuel Turco
Author-X-Name-First: Manuel
Author-X-Name-Last: Turco
Title: The automatic reaction of the Italian government budget to fundamentals: an econometric analysis
Abstract:
The paper offers a new estimate of the sensitivity of Italy's primary
budget balance to macroeconomic variables. The analysis has distinguishing
features: detailed itemization of public finance aggregates; close
attention to the statistical properties of the time series; and joint
estimation of elasticities with respect to both real GDP and inflation.
First, the economic variables driving the automatic component were chosen.
Second, when possible, a macroeconomic base was associated with each
public finance item. Third, each tax base was regressed on the driving
economic variables. Fourth, each budget item that was supposed to include
an automatic component was regressed either on its own base or directly on
the economic variables affecting the automatic components. The effects on
public budget are simulated to investigate the consequences of a change in
nominal and real GDP.
Journal: Applied Economics
Pages: 67-81
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000291326
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291326
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:67-81
Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: E. A. Selvanathan
Author-X-Name-First: E. A.
Author-X-Name-Last: Selvanathan
Title: Is utility additive? Further evidence
Abstract:
This paper investigates the question of additive structure of the utility
function using the data for nine broad commodity groups from 45 countries.
Further evidence is presented in support of the preference independent
utility structure.
Journal: Applied Economics
Pages: 83-86
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000280337
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000280337
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:83-86
Template-Type: ReDIF-Article 1.0
Author-Name: David Cantarero
Author-X-Name-First: David
Author-X-Name-Last: Cantarero
Author-Name: Marta Pascual
Author-X-Name-First: Marta
Author-X-Name-Last: Pascual
Author-Name: Jose Maria Sarabia
Author-X-Name-First: Jose Maria
Author-X-Name-Last: Sarabia
Title: Effects of income inequality on population health: new evidence from the european community household panel
Abstract:
This study provides new evidence in order to explore the relationship
between income inequality and health in the European Union countries using
new data from the European Community Household Panel (ECHP). A variety of
different specifications were tried using diverse dependent variables such
as life expectancy at birth and child mortality. The results show new
support to the influence of income inequality on health indicators using
aggregate data and panel techniques.
Journal: Applied Economics
Pages: 87-91
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000291290
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291290
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:87-91
Template-Type: ReDIF-Article 1.0
Author-Name: Samih Antoine Azar
Author-X-Name-First: Samih Antoine
Author-X-Name-Last: Azar
Title: Econometric diagnostics to distinguish between the IS curve and the Ricardian equivalence
Abstract:
In this article two different specifications of a macroeconomic model are
analysed. The first model is the Keynesian IS (Investments-savings) curve.
The second is derived from the New Classical Ricardian equivalence. Since
the two specifications are observationally equivalent, including the same
set of variables, the econometric diagnostics of the regression equations
are used to differentiate between the two of them. Six statistical
criteria are compared: serial correlation, heteroscedasticity,
specification tests, fit, randomness, and normality. The results support
much better Ricardian equivalence than the Keynesian IS model.
Journal: Applied Economics
Pages: 93-98
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000291885
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291885
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:93-98
Template-Type: ReDIF-Article 1.0
Author-Name: Constantina Kottaridi
Author-X-Name-First: Constantina
Author-X-Name-Last: Kottaridi
Title: The 'core-periphery' pattern of FDI-led growth and production structure in the EU
Abstract:
The present study attempts to shed light on a central and
under-investigated issue in the European integration debate, referring to
the impact of foreign direct investment (FDI) in the growth process of EU
countries and detecting the channels through which FDI can interact with
host characteristics to raise income levels. Using an advanced econometric
approach, i.e., the Arellano-Bond dynamic panel data estimation, it
predicts a 'core-periphery' growth pattern, attributed to initial
strengths and weaknesses of the regions, which, in turn, are responsible
for attracting different types of foreign activity. Policy implications as
to the provision of appropriate investment incentives and the development
of a strong human resources base in periphery are then raised, in order
for it to be able to compete internationally as a host to technology-based
investments and reap the benefits associated with knowledge transfer.
Journal: Applied Economics
Pages: 99-113
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000291308
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291308
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:99-113
Template-Type: ReDIF-Article 1.0
Author-Name: Aki Kangasharju
Author-X-Name-First: Aki
Author-X-Name-Last: Kangasharju
Author-Name: Jaakko Pehkonen
Author-X-Name-First: Jaakko
Author-X-Name-Last: Pehkonen
Author-Name: Sari Pekkala
Author-X-Name-First: Sari
Author-X-Name-Last: Pekkala
Title: Returns to scale in a matching model: evidence from disaggregated panel data
Abstract:
The returns to scale in the matching function play an important role in
models with endogenous search effort. Due to positive externalities,
increasing returns to scale in matching can support high or low activity
equilibrium in the labour market. In this study, we examine this issue
using panel data from Finnish employment offices. The study finds that the
results from the Cobb-Douglas and translog specification are qualitatively
different. The CD specification of the matching function exhibits constant
returns to scale. The translog specification, in turn, exhibits increasing
returns to scale. The elasticity estimate for returns, using the preferred
specification and minimum and maximum sample values for job seekers and
vacancies, fall in the range of 1.1 to 1.6.
Journal: Applied Economics
Pages: 115-118
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331313530
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331313530
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:115-118
Template-Type: ReDIF-Article 1.0
Author-Name: Kang-Shik Choi
Author-X-Name-First: Kang-Shik
Author-X-Name-Last: Choi
Author-Name: Jinook Jeong
Author-X-Name-First: Jinook
Author-X-Name-Last: Jeong
Title: Technological change and wage premium in a small open economy: the case of Korea
Abstract:
The aim of this study is to analyse the relationship between
technological change and the educational wage premium in Korea. The main
findings are as follows. First, the changes in educational wage premium
were mostly affected by shifts in the supply of college graduates from
1983 to 1993 while the changes were affected more by the shifts in labour
demand from 1993 to 2000. Second, the educational wage premium is greater
in the industries with rapid technological change than in the industries
with slower technological change. Third, the educational wage premium
associated with the technological change is mostly explained by the
returns to worker's unobserved heterogeneities, which is correlated with
education, rather than the returns to education per se. Finally, there are
some evidences that skill biased technologies are developed as the number
of skilled workers are increasing.
Journal: Applied Economics
Pages: 119-131
Issue: 1
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000290147
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000290147
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Handle: RePEc:taf:applec:v:37:y:2005:i:1:p:119-131
Template-Type: ReDIF-Article 1.0
Author-Name: William Collier
Author-X-Name-First: William
Author-X-Name-Last: Collier
Title: Unemployment duration and individual heterogeneity: a regional study
Abstract:
This paper investigates the impact of individual heterogeneity and
regional influences on unemployment duration utilizing cross-section
microeconomic data drawn from a representative random survey of individual
job seekers for the English county of Kent. These individual-level data
are unique in that they provide information concerning the personal
characteristics of job seekers, alongside direct observations of both
their reservation wages and job search behaviour. Such data are rare and,
to the authors' knowledge, have never before been utilized in a regional
context. Thus, the paper contributes to the empirical literature by
analysing the extent to which individual heterogeneity and intra-regional
variation in labour market opportunities impact upon the observed
distribution of unemployment duration(s). In particular, the paper
analyses the extent to which the duration of unemployment is determined by
individual choice. This is an important issue for the formation and
evaluation of policy. These results provide new insights into the
long-term efficacy of current microeconomic supply-side initiatives such
as 'The New Deal' and related welfare to work policies. They also advocate
a more active role for macroeconomic demand-led management and provide
support for a more integrated strategy for policy implementation at the
urban and regional level.
Journal: Applied Economics
Pages: 133-153
Issue: 2
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331315042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315042
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Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:133-153
Template-Type: ReDIF-Article 1.0
Author-Name: Bichaka Fayissa
Author-X-Name-First: Bichaka
Author-X-Name-Last: Fayissa
Author-Name: Paulos Gutema
Author-X-Name-First: Paulos
Author-X-Name-Last: Gutema
Title: Estimating a health production function for Sub-Saharan Africa (SSA)
Abstract:
The paper estimates a health production function for Sub-Saharan Africa
based on the Grossman (1972) theoretical model that treats social,
economic, and environmental factors as inputs of the production system. In
estimating this function, socioeconomic and environmental factors such as
income per capita, illiteracy rate, food availability, ratio of health
expenditure to GDP, urbanization rate, and carbon dioxide emission per
worker are specified as determinants of health status. The parameters of
the function are estimated by one-way and two-way fixed and random effects
model of panel data analyses. The results of the two-way random effect
model suggest that an increase in income per capita, a decrease in
illiteracy rate, and an increase in food availability are strongly
associated with an improvement in life expectancy at birth. Overall, the
results imply that a health policy which may focus on the provision of
health services, family planning programs, and emergency aids to the
exclusion of other socioeconomic and environmental aspects may do little
to improve the current health status of the region.
Journal: Applied Economics
Pages: 155-164
Issue: 2
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331313521
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331313521
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Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:155-164
Template-Type: ReDIF-Article 1.0
Author-Name: David Harvey
Author-X-Name-First: David
Author-X-Name-Last: Harvey
Author-Name: Terence Mills
Author-X-Name-First: Terence
Author-X-Name-Last: Mills
Title: Evidence for common features in G7 macroeconomic time series
Abstract:
Systems of economic data potentially exhibit a number of common features,
which aid both econometric modelling and economic interpretation. This
paper surveys a variety of common features and applies the corresponding
testing and estimation techniques to systems of macroeconomic time series
in the G7 countries. Strong evidence is found of common trends and common
or co-dependent cycles in the data, and, for two countries, empirical
support for common non-linearities.
Journal: Applied Economics
Pages: 165-175
Issue: 2
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331314999
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331314999
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Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:165-175
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Bajada
Author-X-Name-First: Christopher
Author-X-Name-Last: Bajada
Title: Unemployment and the underground economy in Australia
Abstract:
Despite government attempts to reduce welfare benefit fraud in Australia,
participation in the underground economy by those claiming to be
unemployed continues. Although there exists considerable international
literature on the size of the underground economy, academics and public
officials alike have paid little attention to the extent of participation
in the underground economy by those who claim to be unemployed and in
receipt of social security payments. This study provides the first known
estimate of how changes in the unemployment rate affect the size and
growth of the underground economy in Australia and the likely economic
implications this may have for public policy decisions. We find that a
number of unemployed Australians prefer to remain unemployed and work
surreptitiously in the underground economy, while others, after becoming
unemployed and finding legitimate employment, prefer to continue working
in the underground economy.
Journal: Applied Economics
Pages: 177-189
Issue: 2
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000291335
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000291335
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Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:177-189
Template-Type: ReDIF-Article 1.0
Author-Name: Epaminondas Panas
Author-X-Name-First: Epaminondas
Author-X-Name-Last: Panas
Title: Generalized beta distributions for describing and analysing intraday stock market data: testing the U-shape pattern
Abstract:
There is an impressive body of empirical evidence which indicates the
existence of an intraday U-shaped curve in stock prices. In an effort to
shed additional light on the U-shaped curve a new procedure for U-shape
testing is introduced. From careful analysis of intraday data it is
observed that minimum or maximum stock prices can occur several times
during the day. Here, attention is focused on the first time during the
day that the maximum or minimum stock price occurred. Because of the
importance of the first time during the day that the maximum or minimum
stock price occurred, an attempt is made to model these two
characteristics with probability distributions. The objective of this
study is to use a generalized beta distribution to examine the intradaily
behaviour of stocks, using closing stock prices for each one-minute
interval, using data from Athens Stock Exchange (ASE). This generalized
beta distribution has not been used before to model U-shaped behaviour.
The results are consistent with the intraday U-shaped curves, i.e. the
time to first maximum (or minimum) stock prices follows a U-shaped
pattern. In addition, some potential applications of the generalized beta
distribution are discussed and exemplified by analysing the relationship
between herd behaviour and U-shaped.
Journal: Applied Economics
Pages: 191-199
Issue: 2
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331315006
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315006
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Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:191-199
Template-Type: ReDIF-Article 1.0
Author-Name: Rebeca Jimenez-Rodriguez
Author-X-Name-First: Rebeca
Author-X-Name-Last: Jimenez-Rodriguez
Author-Name: Marcelo Sanchez
Author-X-Name-First: Marcelo
Author-X-Name-Last: Sanchez
Title: Oil price shocks and real GDP growth: empirical evidence for some OECD countries
Abstract:
This study assesses empirically the effects of oil price shocks on the
real economic activity of the main industrialized countries. Multivariate
VAR analysis is carried out using both linear and non-linear models. The
latter category includes three approaches employed in the literature,
namely, the asymmetric, scaled and net specifications. Evidence of a
non-linear impact of oil prices on real GDP is found. In particular, oil
price increases are found to have an impact on GDP growth of a larger
magnitude than that of oil price declines, with the latter being
statistically insignificant in most cases. Among oil importing countries,
oil price increases are found to have a negative impact on economic
activity in all cases but Japan. Moreover, the effect of oil shocks on GDP
growth differs between the two oil exporting countries in the sample, with
the UK being negatively affected by an oil price increase and Norway
benefiting from it.
Journal: Applied Economics
Pages: 201-228
Issue: 2
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000281561
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000281561
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Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:201-228
Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Fu Chen
Author-X-Name-First: Yu-Fu
Author-X-Name-Last: Chen
Author-Name: I-Hui Cheng
Author-X-Name-First: I-Hui
Author-X-Name-Last: Cheng
Title: Protection and employment under uncertainty: a real option approach
Abstract:
The paper explores the effect of protection lobbying by solving a firm's
dynamic optimization problem where there is uncertainty about future
demand, the success of lobbying and non-zero entry/exit costs. It is found
that firms in declining industries tend to lobby to prevent shutting down
factories during economic turndowns. In contrast, firms in growing
industries tend to lobby to prevent other firms from entering the market.
The degree of this effect depends on the ratio of exit costs to entry
costs. It is shown that the higher the ratio, the stronger the effect.
Journal: Applied Economics
Pages: 229-238
Issue: 2
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331315033
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315033
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Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:229-238
Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Ismihan
Author-X-Name-First: Mustafa
Author-X-Name-Last: Ismihan
Author-Name: Kivilcim Metin-Ozcan
Author-X-Name-First: Kivilcim
Author-X-Name-Last: Metin-Ozcan
Author-Name: Aysit Tansel
Author-X-Name-First: Aysit
Author-X-Name-Last: Tansel
Title: The role of macroeconomic instability in public and private capital accumulation and growth: the case of Turkey 1963-1999
Abstract:
This study investigates the empirical relationship(s) between
macroeconomic instability, public and private capital accumulation and
growth in Turkey over the period 1963-1999. Time series econometric
techniques, such as cointegration and impulse response analysis, are used.
The results of this paper suggest that the chronic and increasing
macroeconomic instability of the Turkish economy has seriously affected
her capital formation and growth. Furthermore, the Turkish experience
indicates that chronic macroeconomic instability seems to be a serious
impediment to public investment, especially to its infrastructural
component, and shatters, or even reverses, the complementarity between
public and private investment in the long run.
Journal: Applied Economics
Pages: 239-251
Issue: 2
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000286115
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000286115
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Handle: RePEc:taf:applec:v:37:y:2005:i:2:p:239-251
Template-Type: ReDIF-Article 1.0
Author-Name: Barry Goodwin
Author-X-Name-First: Barry
Author-X-Name-Last: Goodwin
Author-Name: Randy Schnepf
Author-X-Name-First: Randy
Author-X-Name-Last: Schnepf
Author-Name: Erik Dohlman
Author-X-Name-First: Erik
Author-X-Name-Last: Dohlman
Title: Modelling soybean prices in a changing policy environment
Abstract:
Accurate forecasts of commodity prices are an important ingredient in the
policy formation process. A commodity price forecasting procedure used
routinely by the US Department of Agriculture in their policy and market
analysis activities is a simple, linear, reduced-form regression model
that predicts season-average farm prices (SAFP) using policy variables and
the ratio of total ending stocks to use. This approach is extended to the
soybean SAFP to estimate a benchmark model using annual data. Also several
specification issues related to this estimation framework are addressed.
Evaluation suggests that the standard forecasting procedure may be
affected by the fact that the ratio of stocks to use is endogenous to
prices. In addition, important structural changes are revealed in these
relationships over time. A model is then considered that allows parameters
to shift gradually. Improvements in the accuracy of model forecasts
allowed by this parameter switching technique are identified and
discussed. In addition, the exact nature of the structural shifts is
evaluated using dynamic impulse response functions.
Journal: Applied Economics
Pages: 253-263
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331315060
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315060
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:253-263
Template-Type: ReDIF-Article 1.0
Author-Name: Athina Kanioura
Author-X-Name-First: Athina
Author-X-Name-Last: Kanioura
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: Critical values for an F-test for cointegration in a multivariate model
Abstract:
Critical values for a test for cointegration are generated based on the
joint significance of the levels terms in an error-correction equation. It
is shown that the appropriate critical values are higher than those
derived from the standard F-distribution. The power properties of this
test are compared with those of the Engle-Granger (Econometrica, 55,
251-76, 1987) test and Kremers et al.'s (Oxford Bulletin of Economics and
Statistics, 54(3), 325-48, 1992) t-test based on the t-statistic from an
error-correction equation. The F-test has higher power than the
Engle-Granger test but lower power than the t-form of the error-correction
test. However, the F-form of the test has the advantage that its
distribution is independent of the parameters of the problem being
considered. Finally, a test is considered for cointegration between UK and
US interest rates. It is shown that the F-test rejects the null of no
cointegration between these variables although the Engle-Granger test
fails to do so.
Journal: Applied Economics
Pages: 265-270
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331315051
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315051
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:265-270
Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Florkowski
Author-X-Name-First: Wojciech
Author-X-Name-Last: Florkowski
Author-Name: Camilo Sarmiento
Author-X-Name-First: Camilo
Author-X-Name-Last: Sarmiento
Title: The examination of pecan price differences using spatial correlation estimation
Abstract:
A spatial analysis is used to model factors that explain the price
received by pecan growers. Besides the statistical aspect of the study
focussing on spatial autoregressive residuals, the economic analysis of
the paper identifies linkages between the price for in-shell pecans
received by growers and the characteristics of the orchard, production
costs and resources, and the orchard location.
Journal: Applied Economics
Pages: 271-278
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295340
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295340
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:271-278
Template-Type: ReDIF-Article 1.0
Author-Name: Kostas Tsekouras
Author-X-Name-First: Kostas
Author-X-Name-Last: Tsekouras
Author-Name: Dimitris Skuras
Author-X-Name-First: Dimitris
Author-X-Name-Last: Skuras
Title: Productive efficiency and exports: an examination of alternative hypotheses for the Greek cement industry
Abstract:
Efficiency loss that is due to over- or under-capacity utilization is a
significant factor influencing the exporting activity of firms. Using time
series data from the Greek cement industry, it is found that efficiency
loss triggers export activities up to a certain threshold where firms se
to export in order to reduce the deviation from optimum capacity
utilization. Beyond this threshold, the size of efficiency loss becomes a
major barrier to export in terms of competitiveness. Thus, both the
Self-Selection Hypothesis (SSH) and the well-known Market Selection
Hypothesis (MSH) may be in operation for various sizes of efficiency loss.
Journal: Applied Economics
Pages: 279-291
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295250
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295250
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:279-291
Template-Type: ReDIF-Article 1.0
Author-Name: Luca Grilli
Author-X-Name-First: Luca
Author-X-Name-Last: Grilli
Title: Internet start-ups access to the bank loan market: evidence from Italy
Abstract:
The analysis of the bank sector's ability to efficiently fuel the birth
of new Italian business ventures in Internet-related services is studied.
In particular, through the specification and the estimate of a series of
econometric models, this paper aims at investigating which characteristics
of a large sample of Internet start-ups and their relative founders
facilitate access to the loan market. More precisely, the role played by
founders' human capital as a possible significant signal used by banks to
evaluate investment projects is addressed. Estimation results suggest that
highly qualified human resources possessed by Internet founders do not
represent an important driver for gaining access to bank credit and they
do not affect the amount of the incurred debt.
Journal: Applied Economics
Pages: 293-305
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295331
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295331
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:293-305
Template-Type: ReDIF-Article 1.0
Author-Name: Munehisa Kasuya
Author-X-Name-First: Munehisa
Author-X-Name-Last: Kasuya
Title: Regime-switching approach to monetary policy effects
Abstract:
Even though monetary policy has kept interest rates at historically low
levels, the Japanese economy has experienced long lasting recessions since
the 1990s. In this paper, Japanese data are employed to conduct an
empirical analysis of changes in the effects of monetary policy on the
real economy. It is found that monetary policy effects vary depending on
the phase of the business cycle and the lending attitudes diffusion
indices. More precisely, policy effects are larger in recession but
diminish in extreme recession, and monetary policy is more effective when
lenders' attitudes are severe but less effective when they are excessively
severe.
Journal: Applied Economics
Pages: 307-326
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295241
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295241
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:307-326
Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Andren
Author-X-Name-First: Daniela
Author-X-Name-Last: Andren
Title: 'Never on a Sunday': Economic incentives and short-term sick leave in Sweden
Abstract:
Using a longitudinal data for about 1800 persons observed between 1986
and 1991, this study investigates the incentive effects on short-term
sickness spells of two important regime changes in the social insurance
system in Sweden implemented in 1987 and 1991. The results indicate that
the rules influenced people's decisions about when to report the beginning
and ending of sickness spells. The 1991 reform, which reduced the
replacement rate, had a stronger effect on reducing the duration of
short-term absences than the 1987 reform, which restricted the payment of
sickness cash benefit to only scheduled workdays.
Journal: Applied Economics
Pages: 327-338
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295287
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295287
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:327-338
Template-Type: ReDIF-Article 1.0
Author-Name: Lei Lei Song
Author-X-Name-First: Lei Lei
Author-X-Name-Last: Song
Title: Do underlying measures of inflation outperform headline rates? Evidence from Australian data
Abstract:
Many central banks often focus on underlying measures of inflation when
assessing inflation trends. This paper compares the accuracy of underlying
measures of inflation relative to the headline rates by using Australia
data. It is found that the underlying measures did have smaller errors in
predicting the long-term trend in inflation than the quarterly headline
rate due to the volatility in the headline rate. As compared to the
year-ended headline rate, the statistical test results, however, support
only the measure of market prices excluding volatile items, not the
others. There is some weak evidence of the weighted median measure
outperforming the headline rate in the sub-period after 1993. With respect
to directional accuracy, the test statistics cannot reject the null
hypothesis of an equal probability correctly predicting the moving
direction of the inflation trend, though the headline rates have a higher
probability.
Journal: Applied Economics
Pages: 339-345
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295322
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295322
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:339-345
Template-Type: ReDIF-Article 1.0
Author-Name: Jae Kim
Author-X-Name-First: Jae
Author-X-Name-Last: Kim
Title: Investigating the advertising-sales relationship in the Lydia Pinkham data: a bootstrap approach
Abstract:
The dynamic relationship between advertising and sales in the annual
Lydia Pinkham data is re-evaluated. Past studies have found a feedback
system, although one-way causality from advertising to sales is expected.
The bootstrap method is used in this paper as an alternative to the
asymptotic method exclusively adopted by past studies. The impulse
response analysis based on bivariate autoregressive (AR) model is
conducted. Bootstrap-after-bootstrap confidence intervals on impulse
responses provide evidence that sales do not cause advertising, contrary
to the findings of past studies. Comparison of bootstrap-after-bootstrap
prediction intervals calculated from univariate and bivariate AR models
further supports this finding. Overall, this paper finds evidence of
one-way causality from advertising to sales.
Journal: Applied Economics
Pages: 347-354
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295278
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295278
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:347-354
Template-Type: ReDIF-Article 1.0
Author-Name: Felix J. Lopez Iturriaga
Author-X-Name-First: Felix J. Lopez
Author-X-Name-Last: Iturriaga
Title: Debt ownership structure and legal system: an international analysis
Abstract:
This paper is concerned with the ownership structure of corporate debt
from an institutional perspective. An attempt is made to identify the
factors affecting bank debt use from an international sample of companies
from Austria, Germany, Japan, Belgium, France, Italy, Holland, Spain,
Portugal, Finland, Sweden and the USA. The results show that bank debt
depends both on factors specific to each company and on institutional
features of each country. More exactly, it is found that bank loans are
related to firm size, to the quality and risk of the projects, and to the
collateral. It is also found that a number of legal-institutional factors
are impacting on the source of firms' debt, such as creditor protection,
firm disclosure requirements and law enforcement.
Journal: Applied Economics
Pages: 355-365
Issue: 3
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295269
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295269
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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:355-365
Template-Type: ReDIF-Article 1.0
Author-Name: Harald Tauchmann
Author-X-Name-First: Harald
Author-X-Name-Last: Tauchmann
Title: Efficiency of two-step estimators for censored systems of equations: Shonkwiler and Yen reconsidered
Abstract:
This study analyses a parametric estimator for a system of equations with
limited dependent variables that was recently proposed. Its performance is
compared with those of alternative estimation procedures using Monte Carlo
methods. The comparison shows that this new estimator is less efficient
for a wide range of parameter regions than multivariate generalizations of
the classical Heckman model. This result can be explained by its variance
depending on the squared conditional mean of the dependent variables.
Additionally, it turns out that within the class of generalized Heckman
estimators, rather simple ones display the best performance.
Journal: Applied Economics
Pages: 367-374
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000306987
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000306987
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:367-374
Template-Type: ReDIF-Article 1.0
Author-Name: Hilde Bjørnland
Author-X-Name-First: Hilde
Author-X-Name-Last: Bjørnland
Title: A stable demand for money despite financial crisis: the case of Venezuela
Abstract:
The demand for broad money in Venezuela is investigated over a period of
financial crisis and substantial exchange rate fluctuations. The analysis
shows that there exist a long-run relationship between real money, real
income, inflation, the exchange rate and an interest rate differential,
that remains stable over major policy changes and large shocks. The
long-run properties emphasize that both inflation and exchange rate
depreciations have negative effects on real money demand, whereas a higher
interest rate differential has positive effects. The long-run relationship
is finally embedded in a dynamic equilibrium correction model with
constant parameters. These results have implications for a policy-maker.
In particular, they emphasize that with a high degree of currency
substitution in Venezuela, monetary aggregates will be very sensitive to
changes in the economic environment.
Journal: Applied Economics
Pages: 375-385
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331315015
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315015
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:375-385
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Author-Name: Len Trevino
Author-X-Name-First: Len
Author-X-Name-Last: Trevino
Author-Name: Taisa Minto
Author-X-Name-First: Taisa
Author-X-Name-Last: Minto
Title: Are legislative TV and campaign finance regulations complementary entry barriers? Evidence from the USA
Abstract:
The present study examines the political use of legislative television
and campaign finance restrictions as either complementary or substitutable
forms of entry barriers using data from the 50 states for 1976. Results
from a simultaneous probit procedure indicate that where campaign finance
regulations are relaxed, demand for televised house sessions is increased.
Results also suggest that the presence of televised proceedings increases
the restrictiveness of a state's campaign finance rules, thus supporting
the hypothesis that legislative television and campaign finance
restrictions serve incumbent legislators as complementary institutional
entry barriers. 'Successful politicians must use television and compete
with popular culture for audience attention. Leaders therefore court
voters by entertaining them and making them feel good. This strategy may
increase popularity and win votes …' (Cowen, 2000). 'All 50 states
now regulate lobbyists to some degree. A public interest view of this
regulation would suggest that the result would be that legislation would
take more account of the general welfare and less account of private
interests. However, keeping in mind that legislatures pass lobbying
regulations, an economic model of regulation would suggest that lobbying
regulations would be designed to benefit those in the legislature.'
(Brinig et al., 1993).
Journal: Applied Economics
Pages: 387-396
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000306996
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000306996
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:387-396
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Gentle
Author-X-Name-First: Paul
Author-X-Name-Last: Gentle
Author-Name: Krishna Paudel
Author-X-Name-First: Krishna
Author-X-Name-Last: Paudel
Author-Name: Kamal Upadhyaya
Author-X-Name-First: Kamal
Author-X-Name-Last: Upadhyaya
Title: Real wages, real interest rates, and the Phillips curve
Abstract:
This article argues that any analysis of a Phillips curve should include
the real interest rate in addition to inflation and real wages as any
changes in the interest rate changes the labour-capital input mix in the
production process leading to a change in the level of employment in the
economy. To justify this argument a Phillips curve model is developed,
which includes the real interest rate in addition to inflation and real
wages. After the diagnosis of the time series properties of the data, an
error correction model is developed and estimated using a set of US annual
data from 1948 to 1996. The estimated parameters of the model do suggest
that one should really take into consideration of the real interest rate
while analysing the Phillips curve. A non-nested test (F-test) also
suggests that the Phillips curve model with real interest rate as an
additional variable performs better than the conventional method that does
not include the real interest rate.
Journal: Applied Economics
Pages: 397-402
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840412331315024
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840412331315024
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:397-402
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Marotta
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Marotta
Title: When do trade credit discounts matter? Evidence from Italian firm-level data
Abstract:
Italian firms are top users of trade credit in an international
comparison. The paper offers some clues to the determinants of this
stylized fact exploiting the answers of about 1900 manufacturing firms on
a wide range of contractual features, separately for domestic and foreign
customers. The main finding of the univariate analysis is that, with the
almost totality of transactions made on credit, there is no evidence that
this way of financing is more expensive than loans. An econometric
investigation shows that discounts offered have the expected effect of
reducing payment delays mostly for customers located abroad, where
customary credit periods are shorter and creditors' rights protection is
more effective. The result is consistent with the poor explanatory power
of discounts received in regressions for the trade debt period of domestic
firms.
Journal: Applied Economics
Pages: 403-416
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000329063
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000329063
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:403-416
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Brandao de Brito
Author-X-Name-First: Jose Brandao
Author-X-Name-Last: de Brito
Author-Name: Felipa de Mello Sampayo
Author-X-Name-First: Felipa de Mello
Author-X-Name-Last: Sampayo
Title: The timing and probability of FDI: an application to US multinational enterprises
Abstract:
An 'option-pricing' model is employed to analyse the timing of FDI.
Assuming that the firm's profits are determined by the attractiveness of
both the home and foreign countries, and that attractiveness follows a
Brownian motion, an optimal trigger value of FDI is derived. The model
shows that, contrary to the NPV rule, FDI entry should be delayed the
greater the uncertainty of attractiveness in both locations. Another
important result is that MNEs do not regard FDI as a risk-diversification
tool. The results of the model were then tested empirically with US FDI
data, using labour costs as a proxy for (the reciprocal of)
attractiveness. The results support the findings of the analytical model.
Journal: Applied Economics
Pages: 417-437
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295313
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295313
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:417-437
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Rodriguez Andres
Author-X-Name-First: Antonio Rodriguez
Author-X-Name-Last: Andres
Title: Income inequality, unemployment, and suicide: a panel data analysis of 15 European countries
Abstract:
Most panel data studies have employed overall suicide rates (male and
female) to identify the determinants of suicide. This research has also
neglected the use of country specific linear time trends. Neglecting these
factors may confound the empirical estimates of socio-economic variables
due to the impact of unobserved country specific determinants of suicide
that are time-varying. Empirical results from 15 European countries
between 1970 and 1998 support this hypothesis. Specifically, economic
growth, fertility rate, and alcohol consumption seem to have a significant
impact on male and female suicide rates after the inclusion of country
specific linear trends. Contrary to prior studies, suicide rates were not
sensitive to income levels, female labour participation rates and
unemployment. In addition, the effect of divorce rate is specific to
gender. Finally, the results also illustrate the importance of employing
age-specific suicide rates compared to what has been traditionally used,
in trying to evaluate the factors responsible for suicide mortality. In
particular, the impact of socio-economic factors is not equal across age
groups, and policies aimed at the prevention of suicide should take this
into account.
Journal: Applied Economics
Pages: 439-451
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295304
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295304
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:439-451
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Andre
Author-X-Name-First: Francisco
Author-X-Name-Last: Andre
Author-Name: Javier Perez
Author-X-Name-First: Javier
Author-X-Name-Last: Perez
Title: Robust stylized facts on comovement for the Spanish economy
Abstract:
The suggestion of obtaining stylized facts on comovement on the basis of
prewhitened time series proposed in Andre et al. (2002) is further
developed. First, some examples are shown on the robustness of the method.
Second, the relevance of such a proposal is tested by revisiting some of
the existing stylized facts on comovement for the Spanish economy in
Dolado et al. (1993).
Journal: Applied Economics
Pages: 453-462
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/09603100412331297018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100412331297018
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:453-462
Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Lopez-Pueyo
Author-X-Name-First: Carmen
Author-X-Name-Last: Lopez-Pueyo
Author-Name: Jaime Sanau
Author-X-Name-First: Jaime
Author-X-Name-Last: Sanau
Title: Internal versus external economies in European countries
Abstract:
In this paper sectoral production functions are estimated with a two
digit disaggregation for eight European countries corresponding to the
period 1978-1992, distinguishing between internal economies of scale and
intersectoral external effects. In order to avoid the possibility that the
regressions, carried out by way of panel data techniques, are spurious,
the integration order of each variable has been identified using unit
root. Similarly, the Hausman procedure has been applied to test the
exogeneity of the variables and determine whether the most appropriate
estimations should be SUR or three stage least squares.
Journal: Applied Economics
Pages: 463-471
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000307030
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000307030
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:463-471
Template-Type: ReDIF-Article 1.0
Author-Name: Belen Iraizoz
Author-X-Name-First: Belen
Author-X-Name-Last: Iraizoz
Author-Name: Isabel Bardaji
Author-X-Name-First: Isabel
Author-X-Name-Last: Bardaji
Author-Name: Manuel Rapun
Author-X-Name-First: Manuel
Author-X-Name-Last: Rapun
Title: The Spanish beef sector in the 1990s: impact of the BSE crisis on efficiency and profitability
Abstract:
The beef sector has undergone a series of changes as a result of
successive food scares and agricultural policy reforms. The purpose of the
paper is to analyse technical efficiency and profitability in Spanish
livestock enterprises during the 1990s, focusing on the possible impact of
the BSE crisis and the 1992 CAP reform on each of these variables. The
main findings reveal the existence of technical inefficiency during the
sample period. Some factors have a positive impact, others a negative
impact, on efficiency. As far as the effects of CAP reform and the BSE
crisis are concerned, the results show the ineffectiveness of agricultural
policy regulation to promote efficiency in the sector and the improvement
in the efficiency as a consequence of the BSE crisis. The profitability
analysis reveals the importance of direct subsidies, however. In their
absence, a large percentage of holdings is unable to remunerate either own
or rented factors. Analysis shows, therefore, that there are two
counteracting effects from subsidies. On the one hand, they form a major
part of the resources of livestock farmers, allowing them to meet input
costs and preventing land abandonment. On the other hand, they have a
significant negative impact on the level of technical efficiency
estimated.
Journal: Applied Economics
Pages: 473-484
Issue: 4
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295359
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295359
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Handle: RePEc:taf:applec:v:37:y:2005:i:4:p:473-484
Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Endoh
Author-X-Name-First: Masahiro
Author-X-Name-Last: Endoh
Title: The effects of the GSTP on trade flow: mission accomplished?
Abstract:
This paper investigates whether the Global System of Trade Preferences
among developing countries (GSTP) achieves its intent to increase the
trade of capital goods between member countries. For this purpose, trade
data disaggregated by the degree of commodity differentiation and various
GSTP regional dummies are employed in a gravity equation. Estimation
results say that the value of trade between GSTP member countries has
increased significantly since the formation of the GSTP in 1989, and the
trade of differentiated commodities has increased remarkably compared with
other commodities. Therefore, it can be asserted that the mission of the
GSTP has been accomplished successfully.
Journal: Applied Economics
Pages: 487-496
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000318182
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000318182
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:487-496
Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Proietti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Proietti
Title: Convergence in Italian regional per-capita GDP
Abstract:
This paper addresses the issue of convergence of per-capita GDP of the 20
Italian regions. The paper first focuses on the notion of
σ-convergence and proposes a new hierarchical clustering algorithm,
grouping regions according to the presence of a monotonically decreasing
trend in entropy. Then alternative definitions of long-run convergence are
given, based on the notion of cointegration and common trends and the
evidence arising from application of stationarity tests to the time series
of regional contrasts is examined. The conclusion is that both kind of
convergence can be used to characterize the dynamics of regional
per-capita GDP.
Journal: Applied Economics
Pages: 497-506
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000318173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000318173
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:497-506
Template-Type: ReDIF-Article 1.0
Author-Name: Carlo Altavilla
Author-X-Name-First: Carlo
Author-X-Name-Last: Altavilla
Author-Name: Luigi Landolfo
Author-X-Name-First: Luigi
Author-X-Name-Last: Landolfo
Title: Do central banks act asymmetrically? Empirical evidence from the ECB and the Bank of England
Abstract:
The paper attempts to exploit whether monetary authorities have a
different behaviour during recession and expansion. To this end, a
multivariate extension of Hamilton Markov-switching model is adopted.
First, regime dependent Taylor-type rules are estimated for the Euro Area
and the United Kingdom in order to capture the systematic behaviour of
central banks. Then, impulse response functions that account for the
different phases of the business cycle are analysed. In addition, a
comparative analysis concerning the estimated rules as well as the
different reaction of real economy to monetary shocks is implemented. The
study strongly suggests that central banks cannot neglect the regime where
the monetary action takes place. It follows that the phase of business
cycle is an important matter in monetary policy decision process.
Journal: Applied Economics
Pages: 507-519
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000307072
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000307072
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:507-519
Template-Type: ReDIF-Article 1.0
Author-Name: Robert McNown
Author-X-Name-First: Robert
Author-X-Name-Last: McNown
Author-Name: Cristobal Ridao-Cano
Author-X-Name-First: Cristobal
Author-X-Name-Last: Ridao-Cano
Title: A time series model of fertility and female labour supply in the UK
Abstract:
Multiple time series procedures suitable for estimation and testing with
nonstationary data are applied to UK data on age-specific fertility rates,
age-specific female labour force participation rates, and women's and
men's wages. Cointegration tests establish the existence of two long-run
equilibrium relations, identified as a fertility relation and a labour
supply equation, for each age group. Maximum likelihood estimates of these
equations are consistent with the new home economics model of fertility,
and tests of Granger-causality show evidence of extensive feedback among
the variables.
Journal: Applied Economics
Pages: 521-532
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000307021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000307021
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:521-532
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Eek
Author-X-Name-First: Daniel
Author-X-Name-Last: Eek
Author-Name: Klas Rikner
Author-X-Name-First: Klas
Author-X-Name-Last: Rikner
Title: What determines people's decisions whether or not to report sick?
Abstract:
Swedish employees who are temporarily absent from work are compensated
for the loss of income from the governmentally regulated sickness
insurance. During the 1990s, when the societal costs for covering sickness
absence raised dramatically, the sickness insurance underwent several
changes, which raised questions about how people reacted to the changes
made. This article is based on a survey where individuals were asked
several questions about whether they would go to work or report sick,
given that they actually felt ill. Respondents were asked the same
questions under different hypothetical compensations. The results
indicated strong effects of factors related to the financial loss of being
absent on the propensity to report sick.
Journal: Applied Economics
Pages: 533-543
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000319163
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000319163
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:533-543
Template-Type: ReDIF-Article 1.0
Author-Name: Julie Hotchkiss
Author-X-Name-First: Julie
Author-X-Name-Last: Hotchkiss
Author-Name: M. Melinda Pitts
Author-X-Name-First: M. Melinda
Author-X-Name-Last: Pitts
Title: Female labour force intermittency and current earnings: switching regression model with unknown sample selection
Abstract:
Using the Health and Retirement Survey from the USA, this paper finds a
16% selectivity-corrected wage penalty among women who engage in
intermittent labour market activity. This penalty is experienced at a low
level of intermittent activity, but appears to not play an important role
in a woman's decision to undertake such activity. In addition, employer
preferences appear to play a larger role than human capital atrophy in the
determination of the wage penalty.
Journal: Applied Economics
Pages: 545-560
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000307003
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000307003
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:545-560
Template-Type: ReDIF-Article 1.0
Author-Name: Kwami Adanu
Author-X-Name-First: Kwami
Author-X-Name-Last: Adanu
Title: A cross-province comparison of Okun's coefficient for Canada
Abstract:
This study estimates Okun's coefficients for ten Canadian provinces using
real GDP and unemployment rate data across the provinces. An average
estimated Okun's coefficient of -1.58 is obtained under the
Hodrick-Prescott detrending method and -1.32 under the quadratic
detrending method. There is relative stability of the coefficients across
the two detrending methods. Generally, the cost of unemployment in terms
of the loss in real GDP is higher in the bigger and more industrialized
provinces ranging from -2.14 for Ontario to less than -1 for the Maritime
provinces.
Journal: Applied Economics
Pages: 561-570
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000201848
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000201848
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:561-570
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad. Afrasiabi
Author-X-Name-First: Ahmad.
Author-X-Name-Last: Afrasiabi
Author-Name: Tomas Nonnenmacher
Author-X-Name-First: Tomas
Author-X-Name-Last: Nonnenmacher
Title: High and low frequency variations and the cyclical behaviour of real wages
Abstract:
The conflicting empirical evidence on the cyclicality of real wages may
be a result of the fact that the measure of comovements employed in the
literature is affected by coherence among non-business cycle variations in
the data. By recursively removing components the degree to which long- and
short-term cycles contaminate the existing evidence is studied. While
confirming many of the results of the current literature, it is found that
evidence of cyclicality is affected more by long rather than by short-term
components, even though the data have been detrended by a number of
different methods. It has been suggested in the literature that wages
become more countercyclical as the deflators used represent less finished
bundles of goods. This study shows that this result is robust to the
removal of components from either end of the spectrum.
Journal: Applied Economics
Pages: 571-579
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840420003067068
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840420003067068
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:571-579
Template-Type: ReDIF-Article 1.0
Author-Name: Yesim Kustepeli
Author-X-Name-First: Yesim
Author-X-Name-Last: Kustepeli
Title: A comprehensive short-run analysis of a (possible) Turkish Phillips curve
Abstract:
The studies on Phillips curves relating the rate of unemployment to the
rate of inflation are the results of the search for a reliable tool for
forecasting inflation and implementing monetary policy. The original
Phillips curve has attracted considerable attention and since then, it has
undergone several important changes. Although the evidence of a negative
relationship between the rate of change in a money variable and
unemployment rate has not been proven, it is still considered to be
critical for policymaking and is on researchers' agenda (Niskaken, 2002).
The existence of a Phillips curve for Turkey is investigated with the
linear and non-linear specifications for the conventional and new
Keynesian Phillips curves with inflation expectations and natural rate of
unemployment for annual (1980-2001) and semiannual (1988:2-2003:1) data
sets. The results indicate no evidence of a Phillips curve for all
specifications and both data sets. The semiannual data seems to have a
better fit in all specifications compared to the annual data. Inflation
expectations are found to be significant for inflation rather than
unemployment rate in the current period. The results imply that Turkey has
to solve its inflation problem by proper policies aimed at lowering the
inflation expectations in the economy.
Journal: Applied Economics
Pages: 581-591
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/000368404200030749
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368404200030749
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:581-591
Template-Type: ReDIF-Article 1.0
Author-Name: Chau-Jung Kuo
Author-X-Name-First: Chau-Jung
Author-X-Name-Last: Kuo
Author-Name: Su-Lien Lu
Author-X-Name-First: Su-Lien
Author-X-Name-Last: Lu
Title: Taiwan's financial holding companies: an empirical investigation based on Markov regime-switching model
Abstract:
Though the Financial Holding Company Act in Taiwan permits banks,
securities firms and insurance companies to affiliate, identifying the
influence on Taiwan's financial holding companies hasn't been discussed
rigorously yet. This paper presents a formal methodology, using two-state
Markov regime switching approach, to allow for the uncertainty event-date
of financial holding companies' stock return and risk. This study serves
as one of the first studies that adopt a Markov regime-switching model to
estimate financial holding companies' stock behaviour. The evidence shows
that 12 of 13 financial holding companies have regime-switching and one
has no regime-switching in Taiwan. Therefore, the stock behaviours of
Taiwan's financial holding companies follow two regimes and the
traditional linear model cannot be descriptive. However, the levels of 12
financial holding companies' risk are significantly low of state 1 and
stock returns are indifferent between two states. Hence, there are
diversification benefits of Taiwan's financial holding companies.
Summarily, to assess the influence on Taiwan's financial holding
companies, it is recognized that this methodology developed by the model
is meaningful for research.
Journal: Applied Economics
Pages: 593-605
Issue: 5
Volume: 37
Year: 2005
X-DOI: 10.1080/0003084042000323573
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003084042000323573
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Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:593-605
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Title: Rank-based unit root testing in the presence of structural change under the null: simulation results and an application to US inflation
Abstract:
The size distortion of the Dickey-Fuller (Journal of the American
Statistical Association, 74, pp. 427-31, 1979) unit root test is examined
in the presence of structural changes in both the level and variance of
integrated time series. In contrast to previous studies, the empirically
relevant situation in which such breaks occur simultaneously is examined.
It is shown that the severe distortion observed for the Dickey-Fuller test
can be dramatically reduced via application of a simple rank-based method.
The simulation results presented are supported by an empirical examination
of the integrated nature of US inflation where differing inferences are
drawn using the Dickey-Fuller test and the rank-based Dickey-Fuller test.
Journal: Applied Economics
Pages: 607-617
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000337370
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337370
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:607-617
Template-Type: ReDIF-Article 1.0
Author-Name: Derek Leslie
Author-X-Name-First: Derek
Author-X-Name-Last: Leslie
Title: Why people from the UK's minority ethnic communities achieve weaker degree results than whites
Abstract:
People from the UK's minority ethnic communities achieve less good degree
results than whites. The paper explores some reasons for this
under-performance. By analysing a large sample of around two million
observations a measure of the quality of qualifications among those
accepted into Higher Education is developed. It is found that ethnic
minorities are less well qualified than whites. This is because
proportionately more are accepted into Higher Education, so lower average
quality is unsurprising. Subject choice is also found to have an influence
because ethnic minorities choose subjects where it is more difficult to
achieve a good degree.
Journal: Applied Economics
Pages: 619-632
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000313172
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000313172
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:619-632
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Nehring
Author-X-Name-First: Richard
Author-X-Name-Last: Nehring
Author-Name: Jorge Fernandez-Cornejo
Author-X-Name-First: Jorge
Author-X-Name-Last: Fernandez-Cornejo
Author-Name: David Banker
Author-X-Name-First: David
Author-X-Name-Last: Banker
Title: Off-farm labour and the structure of US agriculture: the case of corn/soybean farms
Abstract:
While the growing importance of off-farm earnings suggests large benefits
accrue to farmers from efforts to expand off-farm income opportunities,
economic well being also depends on greater efficiency. To comprehensively
gauge the economic health of farm operator households' off-farm income is
interpreted as an output along with corn, soybeans, livestock and other
crops. To accomplish this task two related methodologies were used. First,
using 2000 data, a multi-activity cost function was set up to analyse
labour allocation decisions within the farm operator household and also to
estimate returns to scale and scope. Second, using 1996-2000 data, an
input distance function approach was followed to estimate returns to
scale, cost economies and technical efficiency - and the relative
performance of farm operator households with and without off-farm wages
and salaries compared. The cost function and input distance function
results both suggest that off-farm outputs and inputs can be modelled in a
multi-activity framework and involve significant economies of scope.
Journal: Applied Economics
Pages: 633-649
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000323582
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000323582
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:633-649
Template-Type: ReDIF-Article 1.0
Author-Name: David Prescott
Author-X-Name-First: David
Author-X-Name-Last: Prescott
Author-Name: David Wilton
Author-X-Name-First: David
Author-X-Name-Last: Wilton
Author-Name: Canan Dadayli
Author-X-Name-First: Canan
Author-X-Name-Last: Dadayli
Author-Name: Aaron Dickson
Author-X-Name-First: Aaron
Author-X-Name-Last: Dickson
Title: Travel to Canada: the role of Canada's immigrant populations
Abstract:
The effect of Canada's immigrant populations on the annual flow of
visitors to Canada is investigated. A simple utility-maximizing model of
the travel decision motivates the role of immigrant populations in the
aggregate demand equation for visits to Canada. The model implies testable
hypotheses: price and income elasticities differ by purpose of trip. Using
time-series cross-section data on 22 OECD countries an empirical demand
model is estimated. Demand is measured by both the number of visitors and
person-nights and separate equations are estimated for four subcategories
of 'purpose of trip'. Immigrant populations are found to have a strong
influence on the annual flow of foreign visitors. It is estimated that the
present value of the stream of spending by foreign visitors attributable
to an additional immigrant is approximately $4550 in 1996 dollars. In
accordance with the model's predictions, price and income elasticity
estimates are greater for vacationers than for those visiting family and
friends.
Journal: Applied Economics
Pages: 651-663
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000329045
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000329045
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:651-663
Template-Type: ReDIF-Article 1.0
Author-Name: Jane Binner
Author-X-Name-First: Jane
Author-X-Name-Last: Binner
Author-Name: Rakesh Bissoondeeal
Author-X-Name-First: Rakesh
Author-X-Name-Last: Bissoondeeal
Author-Name: Thomas Elger
Author-X-Name-First: Thomas
Author-X-Name-Last: Elger
Author-Name: Alicia Gazely
Author-X-Name-First: Alicia
Author-X-Name-Last: Gazely
Author-Name: Andrew Mullineux
Author-X-Name-First: Andrew
Author-X-Name-Last: Mullineux
Title: A comparison of linear forecasting models and neural networks: an application to Euro inflation and Euro Divisia
Abstract:
Linear models reach their limitations in applications with nonlinearities
in the data. In this paper new empirical evidence is provided on the
relative Euro inflation forecasting performance of linear and non-linear
models. The well established and widely used univariate ARIMA and
multivariate VAR models are used as linear forecasting models whereas
neural networks (NN) are used as non-linear forecasting models. It is
endeavoured to keep the level of subjectivity in the NN building process
to a minimum in an attempt to exploit the full potentials of the NN. It is
also investigated whether the historically poor performance of the
theoretically superior measure of the monetary services flow, Divisia,
relative to the traditional Simple Sum measure could be attributed to a
certain extent to the evaluation of these indices within a linear
framework. Results obtained suggest that non-linear models provide better
within-sample and out-of-sample forecasts and linear models are simply a
subset of them. The Divisia index also outperforms the Simple Sum index
when evaluated in a non-linear framework.
Journal: Applied Economics
Pages: 665-680
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684052000343679
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684052000343679
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:665-680
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Lange
Author-X-Name-First: Ronald
Author-X-Name-Last: Lange
Title: Determinants of the long-term yield in Canada: an open economy VAR approach
Abstract:
This study analyses the economic determinants of short- and long-term
interest rates in Canada using a structural vector autoregressive (VAR)
model. The VAR takes into consideration that Canadian financial markets
are small and open relative to those in the USA and that Canada is a
relatively large exporter of commodities. In part, the empirical results
for Canada are similar to those for the USA. Aggregate demand shocks have
relatively large and persistent effects on long-term yields, while
aggregate supply shocks do not have significant effects. However, monetary
policy shocks in Canada are found to have larger and more persistent
effects on long-term yields than those found for the USA. The most
striking result is that movements in US monetary policy have relatively
large, significant and persistent effects on Canadian long-term bond
yields. Furthermore, US monetary policy disturbances can account for the
overall trend in long-term yields in Canada.
Journal: Applied Economics
Pages: 681-693
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000337389
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337389
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:681-693
Template-Type: ReDIF-Article 1.0
Author-Name: James Kung
Author-X-Name-First: James
Author-X-Name-Last: Kung
Author-Name: Andrew Carverhill
Author-X-Name-First: Andrew
Author-X-Name-Last: Carverhill
Title: A cointegration study of the efficiency of the US Treasury STRIPS market
Abstract:
One theoretical implication of cointegration, according to Granger
(1986), is that asset prices in an efficient market cannot be
cointegrated. Using price data on US Treasury STRIPS with maturities from
2/15/1997 to 8/15/2015, it is found that a set of three STRIPS series is
often cointegrated. In addition, by setting up a costless hedge portfolio
from three STRIPS with three different maturities, it is found that the
hedge portfolio is often stationary and thus arbitrage opportunities are
likely to occur. That is, because the hedge portfolio is costless and
stationary, cash in can be done when the value of the hedge portfolio is
either positive or negative. However, when taking liquidity, tax effects,
and transaction costs into consideration, these arbitrage profits would be
unlikely. Hence, it is concluded that the US Treasury STRIPS market is
efficient.
Journal: Applied Economics
Pages: 695-703
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000329054
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000329054
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:695-703
Template-Type: ReDIF-Article 1.0
Author-Name: Charles DeLorme
Author-X-Name-First: Charles
Author-X-Name-Last: DeLorme
Author-Name: Stacey Isom
Author-X-Name-First: Stacey
Author-X-Name-Last: Isom
Author-Name: David Kamerschen
Author-X-Name-First: David
Author-X-Name-Last: Kamerschen
Title: Rent seeking and taxation in the Ancient Roman Empire
Abstract:
Historians maintain that an increase in taxation of the peasant farmers,
government corruption and misuse of its revenue by the ruling class led to
a weakening of the Roman Empire that culminated in its western demise in
the fifth century. But it was not just the taxation issue doomed the Roman
Empire, but political change from a Republic to an emperor that
exacerbated the climate of rent-seeking behaviour by the ruling classes
that culminated in the misallocation of tax resources. One category of
rent seeking involves the spending of money that the average taxpayer sees
as foolish but that benefits a particular group. The groups who bear the
costs can stop the rent seeking if they are informed. These average
citizens were peasant farmers who no doubt recognized the costs but were
unable to form political coalitions to protect themselves because military
control of Roman legions was under the tight control of the emperor. This
was not the case under the Republic. With the emperors, public funds were
being diverted from the public infrastructure such as road building and
repair to more frivolous activities.
Journal: Applied Economics
Pages: 705-711
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000323591
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000323591
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:705-711
Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Author-Name: Marcos Lima
Author-X-Name-First: Marcos
Author-X-Name-Last: Lima
Title: Market share instability in Brazilian industry: a dynamic panel data analysis
Abstract:
The paper investigates market share instability in the context of
Brazilian industry for the 1986-1998 period. The paper proposes the use of
panel data unit root tests to access market share instability for a sample
of industrial firms from different sectors and therefore generalizes
related time series unit root tests proposed by Gallet and List (2001).
The results mostly indicate that one cannot reject the hypothesis of
market share instability and therefore there exist some degree of market
rivalry in the Brazilian case.
Journal: Applied Economics
Pages: 713-718
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000318181
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000318181
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:713-718
Template-Type: ReDIF-Article 1.0
Author-Name: A. J. Khadaroo
Author-X-Name-First: A. J.
Author-X-Name-Last: Khadaroo
Title: A threshold in inflation dynamics: evidence from emerging countries
Abstract:
Using monthly data over the period January 1976-November 2002, the
present paper detects significant threshold non-linearities in the
inflation rates of three emerging countries, namely India, Singapore and
South Africa. A two-regime self-exciting threshold autoregressive (SETAR)
model of inflation, constituting a significant improvement over the
corresponding linear AR model, is estimated for these countries. Singapore
is shown to have a much lower implied equilibrium inflation rate than
India, while there is a possibility of seasonal inflation equilibria for
South Africa.
Journal: Applied Economics
Pages: 719-723
Issue: 6
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000295296
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295296
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Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:719-723
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolan Fu
Author-X-Name-First: Xiaolan
Author-X-Name-Last: Fu
Title: Exports, technical progress and productivity growth in a transition economy: a non-parametric approach for China
Abstract:
Theories suggesting either static or dynamic productivity gains derived
from exports often assume the prior existence of a competitive market. In
the presence of market imperfection and distortion, however, the
competition and resource reallocation effects of exports on productive
efficiency may be greatly reduced; and there may actually be disincentives
for innovation. This paper analyses the impact of exports on aggregate
productivity growth in a transition economy using a panel of Chinese
manufacturing industries over the period 1990-1997. TFP growth is
estimated by employing a non-parametric approach and is decomposed into
technical progress and efficiency change. No evidence has been found
suggesting significant productivity gains at the industry level resulting
from exports. Findings of the current study suggest that, for exports to
generate significant positive effect on TFP growth, a well-developed
domestic market and a neutral, outward-oriented policy are necessary.
Journal: Applied Economics
Pages: 725-739
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500049041
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500049041
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:725-739
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Gallego
Author-X-Name-First: Francisco
Author-X-Name-Last: Gallego
Author-Name: Christian Johnson
Author-X-Name-First: Christian
Author-X-Name-Last: Johnson
Title: Building confidence intervals for band-pass and Hodrick-Prescott filters: an application using bootstrapping
Abstract:
This article generates innovative confidence intervals for two of the
most popular de-trending methods: Hodrick-Prescott and band-pass filters.
The confidence intervals are obtained using block-bootstrapping techniques
for dependent data. GDP trend growth and output gap intervals for the G7
economies are used as examples. This new methodology increases the
usefulness of these filters by overcoming the absence of confidence
intervals.
Journal: Applied Economics
Pages: 741-749
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500048985
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500048985
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:741-749
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Florio
Author-X-Name-First: Anna
Author-X-Name-Last: Florio
Title: Asymmetric monetary policy: empirical evidence for Italy
Abstract:
A growing body of empirical work has examined the potential asymmetry in
the effects of monetary policy on United States real activity. This study
looks for such an empirical evidence for Italy in the period 1982-1998.
Monetary shocks are obtained as residuals from a central bank reaction
function where the three-months interbank rate is taken as the indicator
of the monetary policy stance. The effects of these positive and negative
shocks on output are statistically different from zero and the null of
symmetry between the two is rejected in favour of negative shocks having a
greater impact on real output growth, thus confirming an asymmetric effect
of monetary policy even for Italy.
Journal: Applied Economics
Pages: 751-764
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500061012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061012
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:751-764
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel
Author-X-Name-First: Rajeev
Author-X-Name-Last: Goel
Author-Name: Michael Nelson
Author-X-Name-First: Michael
Author-X-Name-Last: Nelson
Title: Tobacco policy and tobacco use: differences across tobacco types, gender and age
Abstract:
Using state-level data for 1997, this paper studies the effectiveness of
tobacco policies at reducing tobacco use across different population
groups in the USA. The effectiveness of tax (price)-based and non-price
tobacco policies are examined on tobacco prevalence (including cigarettes
and smokeless tobacco) across gender and age. Besides shedding light on
the efficacy of sub-national tobacco policies, the results also examine
the extent of spillovers of policy actions across tobacco types.
Significant differences in tobacco use are found across gender, age,
policies, and between smoking and smokeless tobacco. Policy implications
are discussed.
Journal: Applied Economics
Pages: 765-771
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000337415
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337415
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:765-771
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Hafez Rehman
Author-X-Name-First: Hafez
Author-X-Name-Last: Rehman
Title: Stability of the money demand function in Asian developing countries
Abstract:
Previous studies that estimated the money demand function in Asian
developing countries either employed traditional estimation techniques or
recently popularized cointegration technique. While the first group
suffers from 'spurious regression' problems, the second group interpreted
their finding of cointegration as a sign of stability of estimated
parameters. This study, after incorporating the CUSUM and CUSUMSQ tests
into cointegration analysis, shows that in some Asian countries even
though real M1 or M2 monetary aggregates are cointegrated with their
determinants, the estimated parameters are unstable.
Journal: Applied Economics
Pages: 773-792
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000337424
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337424
File-Format: text/html
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:773-792
Template-Type: ReDIF-Article 1.0
Author-Name: Adelina Gschwandtner
Author-X-Name-First: Adelina
Author-X-Name-Last: Gschwandtner
Title: Profit persistence in the 'very' long run: evidence from survivors and exiters
Abstract:
One of the main shortcomings of the profit persistence literature is the
fact that it looks only at surviving companies. This paper uses a unique
dataset to analyse profit persistence in two different samples of
stationary series: 85 surviving US companies from 1950-1999 and 72
exiters. While the exiters perform more competitively than the survivors
there is still significant evidence for profit persistence in both
samples. Concentration and growth of the industry as well as size and
volatility of profits seem to play an important role in explaining
persistence.
Journal: Applied Economics
Pages: 793-806
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000337406
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337406
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:793-806
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Agbola
Author-X-Name-First: Frank
Author-X-Name-Last: Agbola
Author-Name: Chartri Kunanopparat
Author-X-Name-First: Chartri
Author-X-Name-Last: Kunanopparat
Title: Determinants of exchange rate practices: some empirical evidence from Thailand
Abstract:
Although Thailand has achieved a spectacular average annual growth rate
of 8% in the past two decades, due largely to the opening of the economy
to international trade, there is not yet a consensus on the exchange rate
regime that is most suited to the restoration of sustained growth in
Thailand. This study empirically investigates the predictors of exchange
rate regimes in Thailand using quarterly data spanning the period 1990:1
and 2002:3. Results indicate that the government is likely to choose a
pegged exchange rate regime in periods of monetary shocks and
unsustainable public finance whereas an open economy with a degree of
economic development and foreign reserves will encourage the government to
opt for a flexible exchange regime in Thailand.
Journal: Applied Economics
Pages: 807-816
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500061061
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061061
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:807-816
Template-Type: ReDIF-Article 1.0
Author-Name: Yeonbae Kim
Author-X-Name-First: Yeonbae
Author-X-Name-Last: Kim
Author-Name: Jeong-Dong Lee
Author-X-Name-First: Jeong-Dong
Author-X-Name-Last: Lee
Author-Name: Daeyoung Koh
Author-X-Name-First: Daeyoung
Author-X-Name-Last: Koh
Title: Effects of consumer preferences on the convergence of mobile telecommunications devices
Abstract:
Amidst the overall trend of convergence in information technology, device
convergence is noteworthy. This study looks at the possible direction of
device convergence based on consumer preferences for the main attributes
of the mobile terminal of the future. Conjoint analysis and a mixed logit
model using a Bayesian approach with Gibbs sampling are used to learn
consumer preferences. Results show that consumers generally prefer a
keyboard and a medium-sized display, although at present most consumers
are indifferent to whether the terminal provides high-quality Internet
service and to whether it operates many kinds of application programs or
programs originally designed for personal computers. Given the
heterogeneity of consumer preferences, partial, rather than perfect,
device convergence is anticipated. Implications for the future of device
convergence and how it will affect other types of convergence are drawn.
Journal: Applied Economics
Pages: 817-826
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000337398
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337398
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:817-826
Template-Type: ReDIF-Article 1.0
Author-Name: John Cotter
Author-X-Name-First: John
Author-X-Name-Last: Cotter
Title: Tail behaviour of the euro
Abstract:
This paper empirically analyses risk in the euro relative to other
currencies. Comparisons are made between a subperiod encompassing the
final transitional stage to full monetary union with a subperiod prior to
this. Stability in the face of speculative attack is examined using
Extreme Value Theory to obtain estimates of tail exchange rate changes.
The findings are encouraging. The euro's common risk measures do not
deviate substantially from other currencies. Also, the euro is stable in
the face of speculative pressure. For example, the findings consistently
show the euro being less risky than the yen, and having similar inherent
risk to the Deutsche mark, the currency that it is essentially replacing.
Journal: Applied Economics
Pages: 827-840
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000338694
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000338694
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:827-840
Template-Type: ReDIF-Article 1.0
Author-Name: Yufei Jin
Author-X-Name-First: Yufei
Author-X-Name-Last: Jin
Author-Name: Roderick Rejesus
Author-X-Name-First: Roderick
Author-X-Name-Last: Rejesus
Author-Name: Bertis Little
Author-X-Name-First: Bertis
Author-X-Name-Last: Little
Title: Binary choice models for rare events data: a crop insurance fraud application
Abstract:
This study implements a recently proposed score test that could help
guide insurance fraud researchers in deciding whether to use a logit or a
probit model in predicting insurance fraud probabilities, especially when
the occurrence of ones in the dependent variable is much less than zeros.
The test is easily implemented in a crop insurance fraud context and seems
to be a promising method that could be applicable to analysing and
detecting potentially fraudulent claims in various lines of insurance.
Journal: Applied Economics
Pages: 841-848
Issue: 7
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000337433
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000337433
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Handle: RePEc:taf:applec:v:37:y:2005:i:7:p:841-848
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Author-Name: Len Trevino
Author-X-Name-First: Len
Author-X-Name-Last: Trevino
Title: Is there gender discrimination in named professorships? An econometric analysis of economics departments in the US South
Abstract:
This study examines the correlates of the probability that an individual
academician holds a named professorship. Named professorships, like other
positions within an organization, are determined by a mixture of market
and non-market forces. Thus, both merit (both past and expected future
productivity) and discrimination may play a role. Regression results and
Blinder-Oaxaca decomposition tests presented here support a conclusion of
gender discrimination in the named professorship process at American
institutions of higher education. Specifically, it is found that gender
discrimination results in a 7.6 percentage point disadvantage for females
(relative to males) regarding the likelihood of holding a named
professorship in economics.
Journal: Applied Economics
Pages: 849-854
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500048902
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500048902
File-Format: text/html
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:849-854
Template-Type: ReDIF-Article 1.0
Author-Name: Jef Vuchelen
Author-X-Name-First: Jef
Author-X-Name-Last: Vuchelen
Author-Name: Maria-Isabel Gutierrez
Author-X-Name-First: Maria-Isabel
Author-X-Name-Last: Gutierrez
Title: Do the OECD 24 month horizon growth forecasts for the G7-countries contain information?
Abstract:
The OECD produces two-year-ahead growth forecasts for the G7-countries
since 1987; these forecasts have never been evaluated. A regression is
developed that tests for the information content of the forecasts. The
idea is that this content is the added value forecasters incorporate in
their forecasts. The information content is defined relative to the
forecast for the previous year. In the end, the added value contained in
the current year forecast is calculated relative to the last observation.
The test consists in checking whether the information content reduces the
forecasts error. The study begins with a calculation of the usual accuracy
statistics. These indicate an extreme low quality for the forecasts. The
regression tests support this conclusion although the forecasts for Japan
do possess some information. Alarming for users of forecasts is that there
are no obvious alternatives.
Journal: Applied Economics
Pages: 855-862
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500061350
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061350
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:855-862
Template-Type: ReDIF-Article 1.0
Author-Name: Andrzej Cieślik
Author-X-Name-First: Andrzej
Author-X-Name-Last: Cieślik
Title: Regional characteristics and the location of foreign firms within Poland
Abstract:
This article investigates the location determinants of firms with foreign
capital participation within Poland using the regional data set from 1993
to 1998. It is found that the concentration of foreign economic activity
is positively related to industry and service agglomeration and the road
network and negatively to the unemployment rate. Traditional regional
characteristics such as GDP, wage rate and education, often regarded as
important location determinants, are not robust with respect to the
specification of the estimating equation. The special economic zone
variable is not found to be statistically significant in any specification
estimated. Geographic location dummies confirm that foreign firms prefer
Central and South-Western regions over Eastern parts of Poland having
controlled for their characteristics.
Journal: Applied Economics
Pages: 863-874
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500061087
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061087
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:863-874
Template-Type: ReDIF-Article 1.0
Author-Name: Manohar Singh
Author-X-Name-First: Manohar
Author-X-Name-Last: Singh
Author-Name: Sheri Faircloth
Author-X-Name-First: Sheri
Author-X-Name-Last: Faircloth
Title: The impact of corporate debt on long term investment and firm performance
Abstract:
Prior research indicates a linkage between debt, research and development
(R&D) and physical investment, and that the relationship varies depending
on the type of firm (science versus non-science). Leverage also plays a
multidimensional role in corporate performance and growth. The
relationship between financial leverage and R&D expenditure is analysed
using a sample of large United States (US) manufacturing firms. Then, the
impact of leverage on R&D expenditure is studied using corporate
performance drivers as intermediate variables. The results indicate that
there is a strong negative relationship between the degree of financial
leverage and the level of R&D expenditure that firms undertake. The
negative relationship is robust to changes in model specifications and
sample periods. More importantly, the results show that it is higher
leverage that leads to lower R&D expense rather than R&D causing
variations in future leverage. In addition, the results indicate that
higher leverage adversely influences future investment in R&D which may in
turn lead to negative impact on long term operating performance and future
growth opportunities.
Journal: Applied Economics
Pages: 875-883
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500076762
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500076762
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:875-883
Template-Type: ReDIF-Article 1.0
Author-Name: Clive Belfield
Author-X-Name-First: Clive
Author-X-Name-Last: Belfield
Title: Workforce gender effects on firm performance and workers' pay: evidence for the UK
Abstract:
Using linked workplace-worker data for the UK, a number of hypotheses are
tested related to individual gender and the gender composition of the
workforce. The proportion of female workers per establishment is strongly
negatively associated with median workplace pay. There is some evidence
that workplace performance (but not employment size or growth) is
positively associated with the female-male workforce ratio. For workers,
the female wage penalty (which is substantial) is strongly influenced by
the female-male workforce ratio. In addition, commensurate with gender
discrimination, those who manage female workers receive lower wages but
professional workers in the same establishments do not.
Journal: Applied Economics
Pages: 885-891
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500048829
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500048829
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:885-891
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Author-Name: Alan Speight
Author-X-Name-First: Alan
Author-X-Name-Last: Speight
Title: A deeper look at asymmetries in UK consumers' expenditure: the nonparametric analysis of 100 disaggregates
Abstract:
The literature on testing for the presence of cyclical asymmetry in UK
consumers' expenditure is extended via the application of nonparametric
tests to data subject to a higher degree of disaggregation than considered
in previous studies. The results obtained at an intermediate level of
disaggregation depict a positive relationship between the durability of
goods and the degree of asymmetry they exhibit. At high levels of
disaggregation to specific expenditure categories, it is found that the
aggregate and intermediate evidence of deepness asymmetry is driven by a
relatively small number of expenditures, with almost no evidence of
deepness asymmetry in non-durable categories of expenditure. Prominent
among the durable and semi-durable good expenditure categories exhibiting
significant positive deepness asymmetry are expenditures relating to
housing fittings and communication, consistent with a degree of
'lumpiness' in expenditure which may be associated with the impact of
credit rationing or threshold effects.
Journal: Applied Economics
Pages: 893-900
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500061301
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061301
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:893-900
Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Charemza
Author-X-Name-First: Wojciech
Author-X-Name-Last: Charemza
Author-Name: Daniela Hristova
Author-X-Name-First: Daniela
Author-X-Name-Last: Hristova
Author-Name: Peter Burridge
Author-X-Name-First: Peter
Author-X-Name-Last: Burridge
Title: Is inflation stationary?
Abstract:
Ninety-three world-wide inflation series are tested for unit roots.
Treating the data series' innovations as draws from a symmetric stable
distribution, with possibly infinite variance, reduces the number that
appear stationary.
Journal: Applied Economics
Pages: 901-903
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500076721
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500076721
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:901-903
Template-Type: ReDIF-Article 1.0
Author-Name: Josep Tribo
Author-X-Name-First: Josep
Author-X-Name-Last: Tribo
Title: An analysis of the length of labour and financial contracts: a study for Spain
Abstract:
This study investigates the connection between the duration of financial
contracts and that of labour contracts. Workers with long-term contracts
have incentives to invest in training. This makes them attractive to the
entrepreneur. Furthermore, this behaviour will be reinforced if financial
contracts are long-term, because it reduces the probability of an early
liquidation as well as the dismissal of trained workers. As a conclusion,
significant increases in the length of financing contracts should be
accompanied by corresponding increases in the length of labour contracts.
Support for this theoretical contention is found by testing it on a
dataset composed of Spanish manufacturing firms for the period 1991-2000.
Journal: Applied Economics
Pages: 905-916
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500081762
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081762
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:905-916
Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Figuerola-Ferretti
Author-X-Name-First: Isabel
Author-X-Name-Last: Figuerola-Ferretti
Title: Prices and production cost in aluminium smelting in the short and the long run
Abstract:
The main objective of this study is to reflect the institutional changes
that have characterized the aluminium industry as a result of the
introduction of London's Metal Exchange (LME) trading. In doing this, it
is shown that product prices are taken exogenously and linked to input
prices via risk sharing agreements. This forces producers, in a
competitive environment, to minimize costs. The latter is completed with a
description of their investment decision-making mechanism, in which
investment is determined by cost, and a measure of Tobin's q. The main
contributions of this study are: the use of a proprietary and complete
industry data set that allows one (a) to set up the short run input and
output price relationships; (b) to model the optimizing behaviour of the
sector via a flexible cost function (translog) allowing scale economies
and non-constant factor substitution; and (c) to describe the
investment-process that has emerged with the introduction of LME trading.
Journal: Applied Economics
Pages: 917-928
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500061244
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061244
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:917-928
Template-Type: ReDIF-Article 1.0
Author-Name: Selcuk Caner
Author-X-Name-First: Selcuk
Author-X-Name-Last: Caner
Author-Name: Zeynep Onder
Author-X-Name-First: Zeynep
Author-X-Name-Last: Onder
Title: Sources of volatility in stock returns in emerging markets
Abstract:
In this study, the short-term fluctuations in the monthly returns on
composite indexes of 17 emerging markets affected by the financial crises
in the late 1990s and 2000 are decomposed with vector autoregressive
estimates. The results are compared to the behaviour of variation in
returns in developed markets. Three different models are estimated for
each market. Due to first order autocorrelations, lagged returns
contribute significantly to return volatility in emerging markets.
Decomposition of variances indicates that dividend yield and interest rate
are determining factors of volatility, but at varying degrees in different
emerging markets. However, the role of dividend yield is not as strong as
it is in the developed markets as efficient markets hypothesis would
imply. In some cases, exchange rates significantly influence market
volatility. Fluctuations in the world portfolio return have a small effect
on return volatility in national markets. However, there are significant
differences across all emerging markets that point to differences in
market structures and particular conditions in each country. Significant
contributions of interest rates, exchange rates and inflation imply the
role of monetary and fiscal policy as precedents of financial crises.
Journal: Applied Economics
Pages: 929-941
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500061046
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061046
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:929-941
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Perez-Mayo
Author-X-Name-First: Jesus
Author-X-Name-Last: Perez-Mayo
Title: Identifying deprivation profiles in Spain: a new approach
Abstract:
Usually, an indirect approach for measuring deprivation or poverty is
used with poverty lines. However, some studies have used a direct approach
to measure deprivation or poverty. The aim of this study is improving the
identification of the poor people. The central point of the concept of
deprivation used is related to the opportunity to have or do something.
Therefore, deprivation means an inability to get the goods, facilities and
opportunities, which are usual in the household environment. Since all of
the needed variables are categorical, the latent class model is used to
solve this problem because it is the best model to achieve this objective.
Journal: Applied Economics
Pages: 943-955
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500060972
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500060972
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:943-955
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Alberta Oliveira
Author-X-Name-First: Maria Alberta
Author-X-Name-Last: Oliveira
Author-Name: Carlos Santos
Author-X-Name-First: Carlos
Author-X-Name-Last: Santos
Title: Assessing school efficiency in Portugal using FDH and bootstrapping
Abstract:
This study explores a new data set that contains information both on
inputs and outputs for a sample of Portuguese secondary schools. An FDH
reference technology is used to determine radial technical efficiency
scores and slacks. Although it is known that there is no reason to assume
convexity in the study of education efficiency frontiers, this is the
first study ever to use FDH at the school level, effectively relaxing the
convexity assumption. A two-stage approach is used, whereby the
significant environmental variables that explain FDH efficiency scores and
slacks are identified. For the purpose of statistical inference, the first
application of the bootstrapping algorithms suggested by Simar and Wilson
(2003) is conducted. The study concludes that the unemployment rate,
access to health care services, adult education and living infrastructures
are determinants of school efficiency. The differences between the coast
and the interior of Portugal seem to be more relevant, as far as school
efficiency is concerned, than whether or not the school belongs to one of
the major coast metropolitan areas.
Journal: Applied Economics
Pages: 957-968
Issue: 8
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500061095
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500061095
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Handle: RePEc:taf:applec:v:37:y:2005:i:8:p:957-968
Template-Type: ReDIF-Article 1.0
Author-Name: David Hauner
Author-X-Name-First: David
Author-X-Name-Last: Hauner
Title: Explaining efficiency differences among large German and Austrian banks
Abstract:
Cost-efficiency, scale efficiency, and productivity change are estimated
by data envelopment analysis; and cost-efficiency is regressed on
explanatory variables. No evidence is found for average productivity
responding to deregulation over the period studied. State-owned banks are
found to be more cost-efficient (likely owing to cheaper funds) and
cooperative banks to be about as cost-efficient as private banks.
Increasing economies of scale but decreasing economies of scope provide
rationale for M&As among banks with similar product portfolios. Interbank
and capital market funding is found to be more cost-efficient than
deposits when the cost of retail networks is controlled.
Journal: Applied Economics
Pages: 969-980
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500081820
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081820
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:969-980
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Hayford
Author-X-Name-First: Marc
Author-X-Name-Last: Hayford
Title: Fiscal policy and national saving
Abstract:
This paper uses structural vector autoregressions along with structural
measures of fiscal policy to measure the dynamic impact of fiscal policy
shocks on the output gap and national saving. Positive shocks to
government purchases and negative shocks to real net taxes are found to
increase the output gap. Positive shocks to the government's structural
surplus increases national saving although the effects are small. Positive
shocks to government purchases are found to substantially reduce national
saving. Negative shocks to real net tax revenues as a share of potential
GDP have a small negative impact on national saving.
Journal: Applied Economics
Pages: 981-992
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109118
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:981-992
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Title: Cost efficiency and banking performances in a partial universal banking system: application of the panel smooth threshold model
Abstract:
This paper studies the cost efficiency of bank in a partial universal
banking system (PUBS), Taiwan. Instead of assuming one common technology
in the bank cost function, two technologies are assumed to be imbedded in
the cost function. Fee revenues are used as threshold to divide the banks
into two technologies. A bank whose fee revenues exceeding the threshold
is designated as universal bank technology while falling below the
threshold is designated as traditional deposit-loan technology. The panel
smooth transition model is adopted, which allows banks to smoothly adjust
between the two technologies. Two criteria are suggested, overbanking and
the trend-toward-fee revenues, to assess the new model's performances.
With respect to scale economies, the results do find a panel smooth
transition model yield more reasonable results than the conventional OLS
and random effect of panel data approach. Based on the panel smooth
transition model, the optimal fixed asset size is around ten billion New
Taiwan dollars.
Journal: Applied Economics
Pages: 993-1009
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500076838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500076838
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:993-1009
Template-Type: ReDIF-Article 1.0
Author-Name: Angel Alanon
Author-X-Name-First: Angel
Author-X-Name-Last: Alanon
Author-Name: M. Gomez-Antonio
Author-X-Name-First: M.
Author-X-Name-Last: Gomez-Antonio
Title: Estimating the size of the shadow economy in Spain: a structural model with latent variables
Abstract:
There has recently been a revival of international interest in measuring
the size of the shadow economy. The current study adopts an approach to
the Spanish case that is based on the theory of unobservable variables.
This methodology involves the estimation of structural models (MIMIC)
which analyses a set of causes of the shadow economy while simultaneously
taking into account its influence upon a series of indicators. The
proposed model permits the determination of a relative evolution over time
of the size of the shadow economy, which requires the calibration of the
model with an exogenous estimation in order to obtain real values. The
exogenous estimation employed is that obtained by a monetary method based
on a money demand function. The results show a considerable shadow
economy, measuring between 8 and 18.8% of GDP in the period 1976-2002, and
demonstrate that the shadow economy is significantly influenced by the tax
burden, the degree of regulation and unit labour costs. A positive
correlation is obtained between GDP, money demand and the level of the
shadow economy.
Journal: Applied Economics
Pages: 1011-1025
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500081788
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081788
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1011-1025
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Gorman
Author-X-Name-First: Michael
Author-X-Name-Last: Gorman
Title: Estimation of an implied price elasticity of demand through current pricing practices
Abstract:
Researchers have long pursued better methods to estimate price elasticity
of market-level demand. Due to a plethora of empirical problems, the
estimates produced in many empirical studies leave researchers with wide
confidence intervals that do little to clarify demand conditions. As a
result, these estimates are of limited practical use to the firm facing a
firm-level demand. Here, a non-statistical methodology based on seller
optimization behaviour is applied that creates an 'implied elasticity' of
firm-level demand that is robust, intuitively plausible and free of
oppressive data requirements. These elasticities are tested in an applied
setting against pricing managers' surveyed estimates for customer price
sensitivity for freight rail transportation services and it is found that
the estimate is consistent with their pricing behaviour. This methodology
is recommended for creating a simple, plausible starting point estimate
for firm-level price elasticities, or using this calculation as an input
to statistical studies.
Journal: Applied Economics
Pages: 1027-1035
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500091969
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1027-1035
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Faria
Author-X-Name-First: Ana
Author-X-Name-Last: Faria
Author-Name: Paul Fenn
Author-X-Name-First: Paul
Author-X-Name-Last: Fenn
Author-Name: Alistair Bruce
Author-X-Name-First: Alistair
Author-X-Name-Last: Bruce
Title: Production technologies and technical efficiency: evidence from Portuguese manufacturing industry
Abstract:
This paper aims to test whether a given type of process innovation,
namely flexible production technologies (FPTs), contributes to increased
firm efficiency. Using one-year firm data from the Portuguese
manufacturing industry and applying a parametric stochastic frontier
approach, individual technical efficiencies are obtained and their
determinants simultaneously estimated, using a single-step procedure
recently proposed by Battese and Coelli (1995). The results support the
hypothesis that technological flexibility, measured through the use of
FPTs, is important in explaining differences in efficiency. Furthermore,
given the specifications of the stochastic frontier function, the null
hypothesis that Portuguese firms are fully technically efficient is
rejected.
Journal: Applied Economics
Pages: 1037-1046
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109191
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109191
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1037-1046
Template-Type: ReDIF-Article 1.0
Author-Name: Andries de Grip
Author-X-Name-First: Andries
Author-X-Name-Last: de Grip
Author-Name: Inge Sieben
Author-X-Name-First: Inge
Author-X-Name-Last: Sieben
Title: The effects of human resource management on small firms' productivity and employees' wages
Abstract:
This paper analyses whether employees and firms differently benefit from
particular human resource (HR) practices. The focus is on small firms that
may be badly informed on the impact of HR practices on firm performance.
In this study on Dutch pharmacies, it is found that firms do not reward
employees' skills according to their contribution to firms' productivity,
as (1) employees are over-rewarded for their sector-specific skills and
under-rewarded for the productivity enhancing effect of their computer
skills and (2) employees' work experience positively affects their wages
but does not have real productivity effects. Moreover, it is found that
training employees in case of vacancy problems seems to be an adequate HR
practice, since it increases productivity without affecting the average
wage level. The opposite holds for offering higher wages to newly
recruited employees. Furthermore, we find that only the employees benefit
from performance evaluation interviews, whereas employing many employees
by temporary contracts appears to have a negative effect on productivity,
without affecting the wage level.
Journal: Applied Economics
Pages: 1047-1054
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500092074
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500092074
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1047-1054
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Darrat
Author-X-Name-First: Ali
Author-X-Name-Last: Darrat
Author-Name: Fatima Al-Shamsi
Author-X-Name-First: Fatima
Author-X-Name-Last: Al-Shamsi
Title: On the path of integration in the Gulf region
Abstract:
It is examined whether the six countries comprising the Gulf Cooperation
Council (GCC) are sufficiently compatible to form a viable economic and
financial block in the Gulf region. Despite long and numerous governmental
attempts since the mid 1980s, and in spite of public pressures to expedite
the process, these countries have thus far failed to achieve full economic
and financial integration. Empirical evidence suggests that this apparent
failure is unlikely the outcome of economic or financial incompatibility
among the countries in the region. The results imply that more efforts
should be directed at resolving possible sociopolitical differences that
may have hampered real progress toward the emergence of a genuine and
effective bloc in the Gulf region.
Journal: Applied Economics
Pages: 1055-1062
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109027
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1055-1062
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: New evidence on purchasing power parity from 17 OECD countries
Abstract:
There is a large literature that investigates whether or not real
exchange rates are stationary in an attempt to unravel support for
purchasing power parity (PPP). At best, the empirical results are mixed.
This paper applies a unit root test that allows for a simultaneous
structural break in the intercept and slope, shown by Sen (2003) to
minimize power distortions, to examine PPP for 17 OECD countries. Our
results on PPP are mixed. When the real exchange rate is based on the US
dollar, evidence is found of PPP for only France, Portugal and Denmark.
When the real exchange rate is based on the Deutschmark, we find evidence
of PPP for Austria, Belgium, Norway, Spain, Netherlands, Switzerland, and
Denmark.
Journal: Applied Economics
Pages: 1063-1071
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500081713
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081713
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1063-1071
Template-Type: ReDIF-Article 1.0
Author-Name: Arnaud Dupuy
Author-X-Name-First: Arnaud
Author-X-Name-Last: Dupuy
Author-Name: Lex Borghans
Author-X-Name-First: Lex
Author-X-Name-Last: Borghans
Title: Supply and demand, allocation and wage inequality: an international comparison
Abstract:
An allocation model of workers differentiated by their field of study is
developed to test whether international differences in the wage structure
can be explained by differences in labour demand and supply in each
country. The model explicitly takes into account the effects of supply and
demand shifts on the allocation structure to disentangle country specific
differences in the recruitment for one occupation from real supply-demand
effects. Empirical results based on data for nine countries show that
cross-country differences in wage inequality explain at least two-third of
the differences in labour demand and supply.
Journal: Applied Economics
Pages: 1073-1088
Issue: 9
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500076671
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500076671
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Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1073-1088
Template-Type: ReDIF-Article 1.0
Author-Name: Torben Andersen
Author-X-Name-First: Torben
Author-X-Name-Last: Andersen
Author-Name: Tryggvi Thor Herbertsson
Author-X-Name-First: Tryggvi Thor
Author-X-Name-Last: Herbertsson
Title: Quantifying globalization
Abstract:
Globalization is much debated, but is it possible to make reliable ranks
of which countries are the most integrated internationally? Traditionally
resort is taken to trade measures, but even considering only economic
integration this measure disregards a number of aspects. This paper
proposes a single measure or index of globalization based on several
indicators of economic integration combined by use of the multivariate
technique of factor analysis. The index is calculated for 23 OECD
countries, and among the findings are that Ireland is ranked as the most
globalized country during the 1990s, while the UK was at the top during
the 1980s. Some of the most notable changes in the rankings are the
decline of the USA, Canada, and to a lesser extent Japan and Norway. There
are notable improvements in the ranking for Finland, Italy, Portugal,
Spain and Sweden. For Portugal and Spain the changes seem to follow EU
membership in the mid-1980s.
Journal: Applied Economics
Pages: 1089-1098
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118200
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1089-1098
Template-Type: ReDIF-Article 1.0
Author-Name: Sonya Kostova Huffman
Author-X-Name-First: Sonya Kostova
Author-X-Name-Last: Huffman
Author-Name: Helen Jensen
Author-X-Name-First: Helen
Author-X-Name-Last: Jensen
Title: Linkages among welfare, food assistance programmes and labour supply: evidence from the survey of programme dynamics
Abstract:
At the centre of the debate on welfare reform is whether incentives-based
systems help poor families move out of poverty into jobs. Recent data from
the first Survey of Programme Dynamics longitudinal and the 1998
experimental data files allow evaluation of the interaction among the Food
Stamp Programme (FSP), Temporary Assistance for Needy Families (TANF)
programme and labour force participation under different programme design
and economic conditions. A model that incorporates jointly determined
programmes participation and work decisions is applied to a sample of
working age, lower income and asset households. Participation in TANF
increases the probability of FSP participation and decreases the
probability of being in the work force; working decreases the probability
of receiving food stamps. Work, TANF, and FSP participation are related,
and TANF and FSP participation rates among poor households who are
potentially eligible for TANF are sensitive to changes in programme
parameters; as expected, labour force participation is affected by the
general economic conditions.
Journal: Applied Economics
Pages: 1099-1113
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109126
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109126
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1099-1113
Template-Type: ReDIF-Article 1.0
Author-Name: Pekka Ilmakunnas
Author-X-Name-First: Pekka
Author-X-Name-Last: Ilmakunnas
Author-Name: Mika Maliranta
Author-X-Name-First: Mika
Author-X-Name-Last: Maliranta
Title: Worker inflow, outflow, and churning
Abstract:
Linked employer-employee data from Finnish business sector is used in
analysing worker turnover. The data set is an unbalanced panel with over
219 000 observations in 1991-97. The churning (excess worker turnover),
worker inflow, and worker outflow rates are explained by plant and
employee characteristics. The probabilities of observing non-zero
churning, inflow, and outflow rates increase with plant size. The
magnitudes of the non-zero churning and inflow rates depend positively on
size, but the magnitude of outflow rate depends negatively on size.
High-wage plants have low turnover; plants with large within-plant
variation in wages have high turnover. Average tenure of employees has a
negative impact on turnover. High plant employment growth increases
churning and separation but reduces hiring in the next year. Also
controlled are average age and education of employees, shares of women and
homeowners among employees, foreign ownership, ownership changes, and
regional unemployment.
Journal: Applied Economics
Pages: 1115-1133
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109621
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109621
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1115-1133
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Larch
Author-X-Name-First: Martin
Author-X-Name-Last: Larch
Author-Name: Matteo Salto
Author-X-Name-First: Matteo
Author-X-Name-Last: Salto
Title: Fiscal rules, inertia and discretionary fiscal policy
Abstract:
In current practice, changes in the cyclically-adjusted budget balance
(CAB) are interpreted as reflecting the effort of discretionary fiscal
policy. This paper shows that such an interpretation is not a sufficiently
accurate description of the behaviour of fiscal policy, as, in some cases,
it may conceal an important deficit bias. Specifically, as growth
projections are an important building block of budgetary plans, systematic
optimism in forecasting growth, coupled with pervasive lags and inertia in
the implementation phase of the budget, will result in a fiscal expansion
compared to plans, even in the absence of discretionary measures. In order
to track down this kind of passive behaviour in the light of growth
surprises or sanguine growth assumptions the traditional reading of the
CAB needs to be adjusted. This is achieved by relaxing the benchmark
assumption according to which, under unchanged fiscal policy, the
deficit-to-GDP ratio is invariant to growth. An empirical application to
public finance data of four large EU countries shows that passive
behaviour is an important element in practice, as forecast errors are
significant in explaining changes in the CAB. Moreover, in some cases
official growth forecasts appear to have a clear upward bias.
Journal: Applied Economics
Pages: 1135-1146
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109589
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109589
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1135-1146
Template-Type: ReDIF-Article 1.0
Author-Name: Yener Kandogan
Author-X-Name-First: Yener
Author-X-Name-Last: Kandogan
Title: Power analysis of the Nice Treaty on the future of European integration
Abstract:
Power analysis of changes in voting weights and rules in the Nice Treaty
is done by applying methods that use Shapley-Shubik and Banzhaf indices.
Significant decreases in voting power of small countries make widening of
integration more acceptable to incumbent members due to small size of the
applicants. Relative increases in the conciliatory power of smaller
members, and relative increases in the independent power of bigger members
make smaller members compromise more, and improve the position of large
members for further deepening of the integration. Lastly, the fairness
analysis reveals a more federalist EU in the way votes are distributed.
Journal: Applied Economics
Pages: 1147-1156
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109498
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109498
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1147-1156
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: The structure of tourist expenditure in Fiji: evidence from unit root structural break tests
Abstract:
The central aim of this paper is to investigate whether shocks to Fiji's
tourism industry have a permanent effect or a transitory effect on tourist
expenditure in Fiji. To accomplish this aim the Zivot and Andrews (1992)
one break test and the Lumsdaine and Papell (1997) two break tests are
used. The one break and two break tests reveal 1987 - the year of the
military coups in Fiji - as the year of the break. Moreover, it is
possible to reject the unit root null leading to the conclusion that
shocks to Fiji's tourism industry have a transitory effect on tourist
expenditure in Fiji.
Journal: Applied Economics
Pages: 1157-1161
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109373
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109373
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1157-1161
Template-Type: ReDIF-Article 1.0
Author-Name: Camilo Sarmiento
Author-X-Name-First: Camilo
Author-X-Name-Last: Sarmiento
Author-Name: Richard Just
Author-X-Name-First: Richard
Author-X-Name-Last: Just
Title: Empirical modelling of the aggregation error in the representative consumer model
Abstract:
This paper examines different approaches to modelling the aggregation
error associated with the representative consumer model. Each approach is
based on an analytical framework intended for modelling aggregate time
series data on quantities and prices with potential additional measures of
income distribution. Simple functions that track aggregation error over
time are found to perform better than more complex and theoretically
sophisticated models. An explanation is given based on typical time series
characteristics of economic data.
Journal: Applied Economics
Pages: 1163-1175
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500123101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500123101
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1163-1175
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: Nergiz Dincer
Author-X-Name-First: Nergiz
Author-X-Name-Last: Dincer
Title: Denomination composition of trade and trade balance: evidence from Turkey
Abstract:
The currency denominations of a country's exports and imports are not
necessarily the same. If this is the case, then a change in the exchange
rate parity among major currencies will affect the trade balance. The
empirical evidence provided from Turkey - where exports are mostly
denominated in Euros and imports are mostly denominated in USD - suggests
that an appreciation of the Euro against the USD would increase the output
in the long-run, appreciate the local currency and improve the trade
balance for the 1985:01 2003:07 period.
Journal: Applied Economics
Pages: 1177-1191
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109159
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109159
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1177-1191
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitris Christopoulos
Author-X-Name-First: Dimitris
Author-X-Name-Last: Christopoulos
Author-Name: John Loizides
Author-X-Name-First: John
Author-X-Name-Last: Loizides
Author-Name: Efthymios Tsionas
Author-X-Name-First: Efthymios
Author-X-Name-Last: Tsionas
Title: The Abrams curve of government size and unemployment: evidence from panel data
Abstract:
This study investigates the long run relationship between government size
and unemployment rate, the Abrams curve, using ten European countries over
the period 1961-1999. To this end, panel cointegration analysis and
estimation techniques appropriate for heterogeneous panels are made use
of. The results support the idea that there is an Abrams curve, and the
relation between government size and the unemployment rate is positive.
Journal: Applied Economics
Pages: 1193-1199
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109274
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109274
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1193-1199
Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Besim
Author-X-Name-First: Mustafa
Author-X-Name-Last: Besim
Author-Name: Glenn Jenkins
Author-X-Name-First: Glenn
Author-X-Name-Last: Jenkins
Title: Tax compliance: when do employees behave like the self-employed?
Abstract:
Previous studies of the underreporting of income for tax purposes have
used private employees as the benchmark to which other groups' compliance
was measured. In this paper it is suggested that there are a number of
circumstances when there will be an incentive for private employees and
their employers to collude to understate employee wages and salaries for
purposes of taxation. The existence of high marginal tax rates of income
tax combined with high social security payroll taxes are the typical
conditions that stimulate this behaviour. These conditions are present in
North Cyprus. This paper examines a rich source of household consumption
expenditure and income data for North Cyprus that allows one to separate
out the consumption expenditures made by the self-employed, private
employees and civil servants over specific periods of time. From the
comparison of consumption expenditures on food by these three groups it is
possible to estimate how much self-employed and the private employees
understated their incomes as compared to the civil servants. It is found
that in North Cyprus private employees understate their incomes by
approximately the same proportion of their incomes as do the
self-employed.
Journal: Applied Economics
Pages: 1201-1208
Issue: 10
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109407
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109407
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Handle: RePEc:taf:applec:v:37:y:2005:i:10:p:1201-1208
Template-Type: ReDIF-Article 1.0
Author-Name: Krishna Paudel
Author-X-Name-First: Krishna
Author-X-Name-Last: Paudel
Author-Name: Christopher McIntosh
Author-X-Name-First: Christopher
Author-X-Name-Last: McIntosh
Title: Numeraire choice in agricultural supply analysis
Abstract:
Should the choice of numeraire price for modelling profit functions be
arbitrary, or is more careful study needed? Here, the choice of numeraire
is examined using tests for models specification and out-of-sample
predictive accuracy based on the crop and livestock data obtained from
Iowa. The results of this study indicate that, for this data set and
functional form, it does indeed make a difference which numeraire you
choose. This is in contrast to previous studies which, in general,
indicated that the choice of numeraire equation is arbitrary or, more
commonly, offered no justification for the netput chosen.
Journal: Applied Economics
Pages: 1209-1214
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500142085
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500142085
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1209-1214
Template-Type: ReDIF-Article 1.0
Author-Name: David Bivin
Author-X-Name-First: David
Author-X-Name-Last: Bivin
Title: Gauging the performance of the linear-quadratic inventory model
Abstract:
The explanatory and predictive abilities of the infinite-horizon
linear-quadratic inventory model are gauged using the flexible-accelerator
model as a baseline. Tests of explanatory power for six nondurables
industries indicate that the flexible accelerator has superior explanatory
power for inventories and output in the majority of industries. Tests of
predictive ability during the late 1990s also support the superiority of
the flexible-accelerator model.
Journal: Applied Economics
Pages: 1215-1231
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118317
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118317
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1215-1231
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Barreiro
Author-X-Name-First: Jesus
Author-X-Name-Last: Barreiro
Author-Name: Mercedes Sanchez
Author-X-Name-First: Mercedes
Author-X-Name-Last: Sanchez
Author-Name: Montserrat Viladrich-Grau
Author-X-Name-First: Montserrat
Author-X-Name-Last: Viladrich-Grau
Title: How much are people willing to pay for silence? A contingent valuation study
Abstract:
Despite its major importance in the urban environment, the problem of
noise has received little attention from environmental economists. In this
paper the economic value of a noise reduction programme is evaluated. The
chosen technique is contingent valuation using the recently proposed one
and one-half bound question format. This new question format reduces the
potential for response bias in multiple bound formats such as the double
bound model while maintaining much of its efficiency. Through the
estimations it is found that urban residents generally value noise
negatively, that is, households are willing to pay for a noise reduction.
In particular, it is found that households are willing to pay
approximately four euros per decibel per year. A further finding is that
interviewees show scope sensitivity; that is, households display a
different willingness to pay for different degrees of noise reduction,
most are willing to pay more for larger decreases in the level of
disturbance from noise.
Journal: Applied Economics
Pages: 1233-1246
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500123234
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500123234
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1233-1246
Template-Type: ReDIF-Article 1.0
Author-Name: James Brox
Author-X-Name-First: James
Author-X-Name-Last: Brox
Author-Name: Christina Fader
Author-X-Name-First: Christina
Author-X-Name-Last: Fader
Title: Infrastructure investment and Canadian manufacturing productivity
Abstract:
This paper examines the relationship between Canadian public
infrastructure and private output using a Constant Elasticity and
Substitution-Translog (CES-TL) cost model to describe the interaction of
the public and private sectors. We find public capital a substitute for
private capital within the Canadian manufacturing sector. Additionally,
the services of public capital enhance the productivity of private
capital. Canadian manufacturing costs are characterized by economies of
scale, indicating that less than optimal plant sizes dominated Canadian
manufacturing sector during the study period. Advances in disembodied
technical progress are also indicated.
Journal: Applied Economics
Pages: 1247-1256
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118382
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118382
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1247-1256
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Binner
Author-X-Name-First: J. M.
Author-X-Name-Last: Binner
Author-Name: R. K. Bissoondeeal
Author-X-Name-First: R. K.
Author-X-Name-Last: Bissoondeeal
Author-Name: A. W. Mullineux
Author-X-Name-First: A. W.
Author-X-Name-Last: Mullineux
Title: A composite leading indicator of the inflation cycle for the Euro area
Abstract:
We evaluate the performance of composite leading indicators of turning
points of inflation in the Euro area, constructed by combining the
techniques of Fourier analysis and Kalman filters with the National Bureau
of Economic Research methodology. In addition, the study compares the
empirical performance of Euro Simple Sum and Divisia monetary aggregates
and provides a tentative answer to the issue of whether or not the UK
should join the Euro area. Our findings suggest that, first, the cyclical
pattern of the different composite leading indicators very closely reflect
that of the inflation cycle for the Euro area; second, the empirical
performance of the Euro Divisia is better than its Simple Sum counterpart
and third, the UK is better out of the Euro area.
Journal: Applied Economics
Pages: 1257-1266
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500082133
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500082133
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1257-1266
Template-Type: ReDIF-Article 1.0
Author-Name: David Moreno
Author-X-Name-First: David
Author-X-Name-Last: Moreno
Author-Name: Paulina Marco
Author-X-Name-First: Paulina
Author-X-Name-Last: Marco
Author-Name: Ignacio Olmeda
Author-X-Name-First: Ignacio
Author-X-Name-Last: Olmeda
Title: Risk forecasting models and optimal portfolio selection
Abstract:
This study analyses, from an investor's perspective, the performance of
several risk forecasting models in obtaining optimal portfolios. The
plausibility of the homoscedastic hypothesis implied in the classical
Markowitz model is dicussed and more general models which take into
account assymetry and time varying risk are analysed. Specifically, it
studies whether ARCH-type based models obtain portfolios whose
risk-adjusted returns exceed those of the classical Markowitz model. The
same analysis is performed with models based on the Lower Partial Moment
(LPM) which take into account the assymetry in the distribution of
returns. The results suggest that none of the models achieve a clearly
superior average performance. It is also found that models based on
semivariance perform as well as those based on the variance, but not
better than, even if the evaluation criterion is based on the
Reward-to-Semivariance ratio. When attention turns to the analysis of
worst case performance, the results are clearly different. Models which
employ LPM with a high degree of risk aversion (n>2) as the risk
measure are consistently superior to those which employ a symmetric
measure, either homoscedastic or heteroscedastic.
Journal: Applied Economics
Pages: 1267-1281
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109142
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109142
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1267-1281
Template-Type: ReDIF-Article 1.0
Author-Name: Jon Gjerde
Author-X-Name-First: Jon
Author-X-Name-Last: Gjerde
Author-Name: Sverre Grepperud
Author-X-Name-First: Sverre
Author-X-Name-Last: Grepperud
Author-Name: Snorre Kverndokk
Author-X-Name-First: Snorre
Author-X-Name-Last: Kverndokk
Title: On adaptation and the demand for health
Abstract:
The purpose of this paper is to analyse the impacts of adaptation to
failing health. This is done by integrating adaptation processes in a
Grossman type of pure consumption model. Model simulations show that
adaptation affects the health variables by lowering the incentives to
invest in health, as well as smoothing the optimal health stock path over
the life cycle. Whether or not the risk of mortality is an object of
choice has important effects when studying adaptation, as well as for the
joint development of the health variables.
Journal: Applied Economics
Pages: 1283-1301
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118663
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118663
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1283-1301
Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Hoffmann
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Hoffmann
Author-Name: Ana Lucia Kassouf
Author-X-Name-First: Ana Lucia
Author-X-Name-Last: Kassouf
Title: Deriving conditional and unconditional marginal effects in log earnings equations estimated by Heckman's procedure
Abstract:
Although the Heckman approach has often been used in empirical analysis,
the marginal effects, necessary to interpret the effect of the regressors
on the dependent variable, appeared to be overlooked. Using the Heckman
approach, general expressions are derived for calculating the conditional
and unconditional marginal effects. Based on a sample of Brazilian women,
the conditional and unconditional return to education are calculated for
the logarithm of earnings equation estimated by Heckman's procedure,
comparing them to the marginal effect of education obtained without
correcting for selectivity bias. The same analysis is carried out for a
discrete variable 'black'.
Journal: Applied Economics
Pages: 1303-1311
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118614
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118614
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1303-1311
Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Heyman
Author-X-Name-First: Fredrik
Author-X-Name-Last: Heyman
Title: Pay inequality and firm performance: evidence from matched employer-employee data
Abstract:
A large matched employer-employee data set for Sweden is used to test
several predictions from tournament theory. For white-collar workers a
positive and significant effect of intra-firm wage dispersion on profits
and average pay is found, using various measures of wage dispersion. This
result is robust for controlling for firm differences in human capital and
firm fixed-effects as well as for instrumenting the wage dispersion
variable to take into account endogeneity of wage dispersion. Using data
on around 10 000 managers, a positive and significant association between
pay dispersion and profits is also found for executives. Further results
include a positive relationship between market demand volatility and wage
dispersion, measured as coefficient of variation in managerial pay, and a
negative effect of the number of managers (contestants) on managerial pay
spread. The first two results are in accordance with predictions from
tournament theory, while the last one is not.
Journal: Applied Economics
Pages: 1313-1327
Issue: 11
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500142101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500142101
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Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1313-1327
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Steven Caudill
Author-X-Name-First: Steven
Author-X-Name-Last: Caudill
Title: Financial development and economic growth: the case of Taiwan
Abstract:
This paper examines the relationship between financial development and
economic growth in Taiwan from 1962 to 1998. Using a four-variable VAR
model, the competing hypotheses of demand-following versus supply-leading
are empirically tested. The results from Granger causality tests based on
vector error-correction models (VECM) suggest unidirectional causality
running from financial development (measured as the ratio of M2 to GDP) to
economic growth. This result supports the supply-leading hypothesis for
Taiwan. This finding highlights the importance of financial development in
Taiwan's recent growth.
Journal: Applied Economics
Pages: 1329-1335
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684042000338702
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000338702
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1329-1335
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Morana
Author-X-Name-First: Claudio
Author-X-Name-Last: Morana
Title: The Japanese deflation: has it had real effects? Could it have been avoided?
Abstract:
Has deflation contributed to the long lasting stagnation of the Japanese
economy? Could the Bank of Japan have stopped deflation by implementing a
more expansionary monetary policy? Tentative answers are probably not to
the first question, and probably yes to the second question. It is found
that the total cost of deflation over the period 1995-2003 has been close
to a 1.1% rate of lost GDP. Yet, on the basis of statistical significance
and robustness to specification choices, this evidence is not compelling.
On the other hand, the estimated positive linkage between nominal base
money growth and inflation is significant and robust, even given current
economic conditions. However, in order to be inflationary, monetary policy
should have been more expansionary than what actually observed, even since
the launch of the quantitative easing in 2001.
Journal: Applied Economics
Pages: 1337-1352
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500166340
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500166340
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1337-1352
Template-Type: ReDIF-Article 1.0
Author-Name: Jordan Shan
Author-X-Name-First: Jordan
Author-X-Name-Last: Shan
Title: Does financial development 'lead' economic growth? A vector auto-regression appraisal
Abstract:
Using a Vector Autoregression (VAR) approach, several hypotheses are
re-examined suggested by the literature concerning the relationship
between financial development and economic growth, investment and
productivity. The models use quarterly time-series data from ten OECD
countries and China. Innovation accounting or variance decomposition and
impulse response function analysis is applied to examine
interrelationships between variables in the VAR system and, therefore,
differs from the more usual Granger causality approach. In particular, it
examines the relationship between financial development proxied by total
credit. At best, weak support is found for the hypothesis that financial
development 'leads' economic growth.
Journal: Applied Economics
Pages: 1353-1367
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118762
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118762
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1353-1367
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Author-Name: Pedro Mendi
Author-X-Name-First: Pedro
Author-X-Name-Last: Mendi
Title: Fractional integration in total factor productivity: evidence from US data
Abstract:
This study examines the stochastic properties of different measures of
Total Factor Productivity (TFP) in the USA and their components using
fractional integration. The results show that its structure is more
complicated than expected, formed by the interaction of various seasonal
and non-seasonal unit (or fractional) processes. Thus, output (measured in
terms of the GDP or the business sector value added) may be modelled as a
unit root; the order of integration of capital is much higher than 1 and
it may be specified even as an I(2) process, while labour contains a
seasonal unit root. However, in all these cases, fractional degrees of
integration may be even better characterizations for these series. As a
result, the TFP series appear to be seasonally fractionally integrated,
with d constrained between 0.5 and 1. A deeper investigation of the orders
of integration at each of the frequencies shows that the order of
integration at zero plays a much more important role that the seasonal
frequencies, a result that is explained by the different stochastic nature
of the components underlying the TFP.
Journal: Applied Economics
Pages: 1369-1383
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118721
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118721
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1369-1383
Template-Type: ReDIF-Article 1.0
Author-Name: Knut Blind
Author-X-Name-First: Knut
Author-X-Name-Last: Blind
Author-Name: Andre Jungmittag
Author-X-Name-First: Andre
Author-X-Name-Last: Jungmittag
Title: Trade and the impact of innovations and standards: the case of Germany and the UK
Abstract:
The effects of patents as indicators for innovations and standards on
German trade performance are analysed in general and German-British trade
in detail. The latter analysis goes a step further than the approach of
Swann et al. (1996) and is based on a broader and more detailed database.
The results show that Germany's export performance can primarily be
explained by its innovative capacity and only to a small extent by its
strength in standards. Furthermore, the results underscore the common view
of the trade-fostering effect of international standards, while
'idiosyncratic' standards have ambiguous effects on exports.
Journal: Applied Economics
Pages: 1385-1398
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/13504850500143294
File-URL: http://www.tandfonline.com/doi/abs/10.1080/13504850500143294
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1385-1398
Template-Type: ReDIF-Article 1.0
Author-Name: Judy Shaw-Er
Author-X-Name-First: Judy
Author-X-Name-Last: Shaw-Er
Author-Name: Wang Chiang
Author-X-Name-First: Wang
Author-X-Name-Last: Chiang
Author-Name: Ya-Wen Chen
Author-X-Name-First: Ya-Wen
Author-X-Name-Last: Chen
Title: Cost structure and technological change of local public transport: the Kaohsiung City Bus case
Abstract:
This study has developed a translog cost function for the Kaohsiung City
Bus (KCB) to analyse its cost structure and economic characteristics,
based on monthly data over the time period from January 1996 to December
2000. The empirical results reveal that economies of density in the
provision of bus services in Kaohsiung do prevail. The estimated marginal
cost, which is less than the average cost but greater than the current bus
fare, indicates that the subsidy is necessary. Due to the existence of
returns to density (RTD), the KCB could obtain cost-saving benefits by
extending its output scale. The KCB production technology is also not
neutral. The effects of technological change on the KCB costs suggest that
over the period 1996-2000 technological progress did lead to cost saving;
the pure productivity growth rate increased from 0.45% in 1998 to 3% in
2000.
Journal: Applied Economics
Pages: 1399-1410
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118465
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118465
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1399-1410
Template-Type: ReDIF-Article 1.0
Author-Name: Ya-Ming Liu
Author-X-Name-First: Ya-Ming
Author-X-Name-Last: Liu
Author-Name: Jean Kinsey
Author-X-Name-First: Jean
Author-X-Name-Last: Kinsey
Title: The effect of competition on the practice of outpatient services for diabetes patients at different levels of hospitals in Taiwan
Abstract:
This paper empirically analyses hospital non-price competition in a
market characterized by a government accreditation system in Taiwan.
Outpatient services for diabetes patients were used to measure the quality
of patient care in outpatient departments in three types of hospitals. The
hypothesis that an increase in the number of highest accredited hospitals
- medical centres - would improve the quality of care in other types of
hospitals is rejected. However, after carefully controlling endogeneity
and measurement error of the hospital competition index by using
instrumental variables, empirical findings based on the National Health
Insurance Research Database from 1997 to 1999 show that different types of
hospitals may respond to competitive pressure from the various levels of
hospitals differently. Positive spillover effects were found from
competition from regional and district hospitals. These findings may
deserve serious consideration when forming policy to allocate medical
resources to different levels of hospitals.
Journal: Applied Economics
Pages: 1411-1422
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118697
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1411-1422
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Ezcurra
Author-X-Name-First: Roberto
Author-X-Name-Last: Ezcurra
Author-Name: Carlos Gil
Author-X-Name-First: Carlos
Author-X-Name-Last: Gil
Author-Name: Pedro Pascual
Author-X-Name-First: Pedro
Author-X-Name-Last: Pascual
Title: Regional welfare disparities: the case of the European Union
Abstract:
The regional welfare distribution in the European Union between 1993 and
1998 is examined, using several complementary methodologies. The results
obtained show a reduction in regional welfare disparities over the period
analysed. It is worth noting, in this respect, however, that regional
productivity differences prove to be the main determinant behind observed
welfare inequality in the European context. Moreover, there has also been
a decline in regional bipolarization over the six-year contemplated, while
the degree of observed intradistributional mobility is relatively low. The
empirical evidence presented, nevertheless, reveals the importance of
variables such as the national component, the spatial location, the
regional productive structure or the percentage of GDP devoted to
investment or to R&D expenditure, in accounting for the dynamics of the
distribution under analysis.
Journal: Applied Economics
Pages: 1423-1437
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500142036
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500142036
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1423-1437
Template-Type: ReDIF-Article 1.0
Author-Name: James Ang
Author-X-Name-First: James
Author-X-Name-Last: Ang
Author-Name: An-Sing Chen
Author-X-Name-First: An-Sing
Author-X-Name-Last: Chen
Author-Name: James Wuh Lin
Author-X-Name-First: James Wuh
Author-X-Name-Last: Lin
Title: Ascertaining the effects of employee bonus plans
Abstract:
The effect of employee bonus plans may be difficult to ascertain
empirically if the size of bonus is not large enough in magnitude compared
to base salary. This study makes use of data from Taiwan where employee
bonus payments are not only mandated by law but are quite often several
times a typical employee's annual base salary. The use of this unique data
allows one to empirically observe interesting relationships difficult to
ascertain from traditional datasets. Evidence is found that the
performance of bonus-paying firms is related to the size of bonuses paid,
both before and after analysis, and across industries. In general,
evidence seems to indicate that bonus-paying firms tend to achieve higher
productivity, better cost control and asset utilization, and share price
returns. However, there may be evidence that marginal returns to employee
bonuses are decreasing, reflecting the use of bonuses as substitutes for
cash pay in order to attract employees in short supply. These results can
serve as useful benchmarks for future studies.
Journal: Applied Economics
Pages: 1439-1448
Issue: 12
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500092009
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500092009
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Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1439-1448
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Strobel
Author-X-Name-First: Frank
Author-X-Name-Last: Strobel
Title: Leaving EMU: a real options perspective
Abstract:
The real option implicit in a country's decision of whether to leave an
existing monetary union when there is uncertainty over the future benefits
of this move is examined. The theoretical model used is calibrated for the
current Euro-12 area by proxying policymakers' inflation preferences with
unemployment rates and debt-to-GDP ratios. A robust group of countries is
observed that would choose to remain within EMU consisting of Belgium,
Finland, Greece and Italy; France and Spain loosely also belong to this
core. Only Luxembourg would robustly want to leave EMU; Ireland and The
Netherlands, however, complement that core closely.
Journal: Applied Economics
Pages: 1449-1453
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500166308
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500166308
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1449-1453
Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Pons-i-Novell
Author-X-Name-First: Jordi
Author-X-Name-Last: Pons-i-Novell
Author-Name: Ramon Tremosa-i-Balcells
Author-X-Name-First: Ramon
Author-X-Name-Last: Tremosa-i-Balcells
Title: Macroeconomic effects of Catalan fiscal deficit with the Spanish state (2002-2010)
Abstract:
According to Eurostat Regional data for the period 1996-1999 Catalan
convergence with the EU's most dynamic regions has been blocked. In this
paper, with the aim to analyse how Catalonia can converge with the EU in
the forthcoming years, some simulations of Catalan GDP growth in the 2010
horizon have been estimated, considering different reduction scenarios of
Catalan fiscal deficit with the Spanish state (between 7-9% of Catalan
yearly GDP). Looking at the results obtained, the current Catalan
stagnation will persist for the next few years if the above-mentioned
fiscal deficit does not change. Thus, Catalonia will only converge with
most dynamic EU regions if there is a significant reduction of Catalan
fiscal deficit with the Spanish state.
Journal: Applied Economics
Pages: 1455-1463
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109134
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109134
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1455-1463
Template-Type: ReDIF-Article 1.0
Author-Name: Sanjin Piragic
Author-X-Name-First: Sanjin
Author-X-Name-Last: Piragic
Author-Name: Kenneth Jameson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Jameson
Title: The determinants of Latin American exchange rate regimes
Abstract:
The experience of the last thirty years suggests that a wide range of
factors affects policymakers' choice of exchange rate regime. The initial
explanation was that changes in the international sphere dominated
domestic policies and strongly influenced how governments decided among
the trade-offs. More recently, domestic political factors' influence on
the choice of exchange rate regimes have been emphasized, providing
detailed and rich insights into the dynamics of the choice. Neither
approach has been entirely successful. Both internal and external factors
must be taken into account. This article builds on previous empirical work
and takes into account domestic and international influences on the choice
of exchange rate regimes in Latin America between 1964 and 1996. In
addition, we highlight a variety of 'interactions', choices of economic
policy that are affected by both national and international pressures and
that, in turn, influence the choice of exchange rate regime. The empirical
model uses multinomial ordered logit analysis to determine the factors in
exchange rate determination and to compare the explanatory of the models
with and without the interaction variables.
Journal: Applied Economics
Pages: 1465-1474
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500193773
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193773
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1465-1474
Template-Type: ReDIF-Article 1.0
Author-Name: George Halkos
Author-X-Name-First: George
Author-X-Name-Last: Halkos
Author-Name: Christos Kitsos
Author-X-Name-First: Christos
Author-X-Name-Last: Kitsos
Title: Optimal pollution level: a theoretical identification
Abstract:
In this paper, the optimal pollution level is identified under the
assumptions of linear, quadratic and exponential cost functions. The
corresponding optimal level of environmental policy is evaluated, with
analytical forms in the linear and quadratic case, while in the
exponential case, these values are obtained approximately. It is shown
that, in principle, its existence obeys certain restrictions, which are
investigated here. The evaluation of the benefit area is discussed and
analytical forms for this particular area are calculated. The positive
point, at least from a theoretical point of view, is that both the
quadratic and the exponential case obey the same form when evaluating the
benefit area. These benefit area evaluations can be used as indexes
between different rival policies, and certainly the policy that produces
the maximum area is the most beneficial policy.
Journal: Applied Economics
Pages: 1475-1483
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500193625
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193625
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1475-1483
Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Testing for the random walk hypothesis in the case of visitor arrivals: evidence from Indian tourism
Abstract:
Testing for the random walk hypothesis, which asserts that a series is a
non-stationary process or a unit root process, in the case of visitor
arrivals has important implications for policy. If, for instance, visitor
arrivals are characterized by a unit root, then it implies that shocks to
visitor arrivals are permanent. However, if visitor arrivals are without a
unit root, this implies that shocks to visitor arrivals are temporary.
This study provides evidence on the random walk hypothesis for visitor
arrivals to India using the recently developed Im et al. (2003) and
Maddala and Wu (1999) panel unit root tests. Both tests allow one to
reject the random walk hypothesis, implying that shocks to visitor
arrivals to India from the 10 major source markets have a temporary effect
on visitor arrivals.
Journal: Applied Economics
Pages: 1485-1490
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500109332
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500109332
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1485-1490
Template-Type: ReDIF-Article 1.0
Author-Name: Soo Khoon Goh
Author-X-Name-First: Soo Khoon
Author-X-Name-Last: Goh
Title: New empirical evidence on the effects of capital controls on composition of capital flows in Malaysia
Abstract:
This study aims to examine the effect of capital controls on composition
capital flows in Malaysia. Under predetermined exchange rate rules, the
contribution of selective controls is to increase monetary autonomy,
without taxing private long-term capital flow or foreign direct
investment. Although the selective capital controls in Malaysia tax only
some components of capital flows, the study shows, after controlling other
factors, the controls not only reduce the total flows (hence increase
monetary autonomy), but to some extent affected the private long-term
flows.
Journal: Applied Economics
Pages: 1491-1503
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118952
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118952
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1491-1503
Template-Type: ReDIF-Article 1.0
Author-Name: Prodromos-Ioannis Prodromidis
Author-X-Name-First: Prodromos-Ioannis
Author-X-Name-Last: Prodromidis
Title: Estimating women's time use: based on British survey evidence from 1986-1987
Abstract:
The paper considers the allocation of time among working-age women in
Britain using time-budget data from 1986-1987. It finds that women
generally allocate 69% of their time towards non-work, 21% to unpaid work,
and 10% towards paid work (which is often censored). It also estimates the
coefficients of the uncensored functions and compares the findings to the
outcomes of the censored labour supply regression stemming from the
Selection-Bias Correction (SBC) and Tobit procedures.
Journal: Applied Economics
Pages: 1505-1521
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500081754
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500081754
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1505-1521
Template-Type: ReDIF-Article 1.0
Author-Name: Pi-Fem Hsu
Author-X-Name-First: Pi-Fem
Author-X-Name-Last: Hsu
Title: Inter-industry wage premiums and industry-specific productivity in Taiwan
Abstract:
By using Taiwan's Manpower Utilization Survey data for the 1978-2000
period, different inter-industry wage premiums in Taiwan are observed and
the impact of workers' industry-specific productivity on the wage
explored. The empirical results show that industry-specific skills result
in industry stayers having higher wages than industry switchers through
their reservation wages. It is also found that the pre-displacement
industry affiliations that are associated with the post-displacement wages
are explained by the workers' unobserved abilities. Furthermore, by
comparing the different residual means between industry switchers and
stayers based on each industry's wage equation, it is found that the
switchers are low-wage workers who tend to be located in the high-wage
industries. The high-wage industry leavers are also found to have higher
post-displacement wage residuals than the low-wage industry leavers. These
results suggest that the differences in industry wage premiums may be
explained by the industry-specific productivity.
Journal: Applied Economics
Pages: 1523-1533
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118861
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118861
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1523-1533
Template-Type: ReDIF-Article 1.0
Author-Name: James Johnston
Author-X-Name-First: James
Author-X-Name-Last: Johnston
Title: Reward design and CEO succession in the UK
Abstract:
Previous research has shown that top executives often rise to the peak of
their organizations after a long-term employment relationship, and that
internal promotion to the top is reflected in enhanced baseline salaries.
Using data from a representative sample of UK companies, the links between
the fixed and variable elements of the Chief Executive Officer's
compensation package are examined and whether the appointment has been
promoted internally or recruited from outside of the company. From this
analysis, it is concluded that the positive impact on basic pay of
elevation to the top job from within the company is not present in total
compensation or the structure of pay. It also emerges that although tenure
does not significantly impact on the structure of pay, it does alter total
reward through its impact on the value of options granted: longer company
tenure reduces both the award of share options and the total value of the
remuneration package; job tenure, on the other hand, raises the
executive's reward primarily through its positive impact on baseline
salary. Though share ownership reduces the performance sensitivity of
earnings, increases in baseline salary are reflected in greater exposure
to the use of share options.
Journal: Applied Economics
Pages: 1535-1541
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500193914
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193914
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1535-1541
Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Hsien Liu
Author-X-Name-First: Wen-Hsien
Author-X-Name-Last: Liu
Author-Name: Ya-Chi Lin
Author-X-Name-First: Ya-Chi
Author-X-Name-Last: Lin
Title: Foreign patent rights and high-tech exports: evidence from Taiwan
Abstract:
This paper conducts a consecutive pooled data analysis from 1989 to 2000
to investigate the relationship between foreign patent rights (FPRs) and
the exports of three high-tech industries in Taiwan: the semiconductor,
the information and the communication equipment industries. Following
Smith's model setup, empirical results indicate that both market expansion
and market power effects do exist in Taiwan's case. In addition, this
paper proposes a new hypothesis in which the importing country may exhibit
a stronger R&D ability than the exporting country, a case that has not
been considered in earlier empirical work. Finally, a test is made to
determine if a TRIPS (Trade-related Intellectual Property Rights)
agreement has any impact on the FPRs-exports relationship, and no evidence
is found of a structural change after the implementation of TRIPS.
Journal: Applied Economics
Pages: 1543-1555
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500173155
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500173155
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1543-1555
Template-Type: ReDIF-Article 1.0
Author-Name: Suheyla Ozyildirim
Author-X-Name-First: Suheyla
Author-X-Name-Last: Ozyildirim
Author-Name: Bulent Yaman
Author-X-Name-First: Bulent
Author-X-Name-Last: Yaman
Title: Optimal versus adequate level of international reserves: evidence for Turkey
Abstract:
The determination of international reserve balance for emerging economies
is part of the efforts to strengthen the immunity of these economies to
crises. However, there is still evidence on crises even for the countries
with large foreign reserves. It has usually been experienced that the
countries with greatest need for reserves economize more than others on
their holdings since they might underestimate the cost of crisis. In this
study, the official international reserves of Turkey are tested against
optimality and adequacy. During 1988-2002, the actual reserves fell short
of both the optimal and the adequate levels. They are only optimal when
the expected cumulative contraction is about 5.2% of real GDP under
crisis. However, early evidence from emerging economies and Turkey show
that crises hit more heavily. Hence, it is found that the current
financial structure in Turkey such as the absence of capital controls and
a highly dollarized banking system necessitates more foreign reserves for
preventing any future economic and/or financial shocks.
Journal: Applied Economics
Pages: 1557-1569
Issue: 13
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500166373
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500166373
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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1557-1569
Template-Type: ReDIF-Article 1.0
Author-Name: Joan Costa-Font
Author-X-Name-First: Joan
Author-X-Name-Last: Costa-Font
Author-Name: Joan Rovira
Author-X-Name-First: Joan
Author-X-Name-Last: Rovira
Title: Eliciting preferences for collectively financed health programmes: the 'willingness to assign' approach
Abstract:
Improving public involvement in health system decision making stands as a
primary health policy goal. However, still limited guidance is available
on how best to elicit preferences for health care programmes. This study
examines a contingent choice technique to elicit preferences among health
programmes, and named 'willingness to assign' (WTAS). WTAS reveals
relative (monetary-based) values of a set of competing public programmes
under a hypothetical healthcare budget assessment. Experimental evidence
is reported from a deliberative empirical study valuing ten health
programmes in the context of the Catalan Health Service. Evidence from
this experimental study reveals that within the context of multiple
programmes, preferences are internally more consistent and slightly less
affected by 'preference reversals' as compared to values revealed from an
adapted technique eliciting the willingness to pay (WTP) extra taxes.
Another finding suggests that although programmes promoting health
received the higher relative valuation, those promoting other health
benefits were valued highly.
Journal: Applied Economics
Pages: 1571-1583
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500181695
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500181695
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1571-1583
Template-Type: ReDIF-Article 1.0
Author-Name: Emanuele Bacchiocchi
Author-X-Name-First: Emanuele
Author-X-Name-Last: Bacchiocchi
Author-Name: Massimo Florio
Author-X-Name-First: Massimo
Author-X-Name-Last: Florio
Author-Name: Mara Grasseni
Author-X-Name-First: Mara
Author-X-Name-Last: Grasseni
Title: The missing shock: the macroeconomic impact of British Privatizations
Abstract:
In this paper the impact of privatization on macroeconomic performance in
the United Kingdom is tested using quarterly data from 1979 to 1999.
Privatization proceeds have been included in a simple analytical framework
dealing with both demand and supply-side of the economy. Multivariate
cointegration techniques have been used in order to consider the
nonstationarity of the time series involved. The empirical results show
that privatizations have no long-run effects on output in the UK. This
result is consistent with microeconomic evidence that shows that in the UK
ownership change per se had little impact on long term productivity
trends. Moreover it is found that privatization proceeds have contributed
to sustaining public expenditures.
Journal: Applied Economics
Pages: 1585-1596
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500215170
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215170
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1585-1596
Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Russo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Russo
Author-Name: Wolter Hassink
Author-X-Name-First: Wolter
Author-X-Name-Last: Hassink
Author-Name: Cees Gorter
Author-X-Name-First: Cees
Author-X-Name-Last: Gorter
Title: Filling vacancies: an empirical analysis of the cost and benefit of search in the labour market
Abstract:
This paper investigates empirically the factors that affect the
cost-benefit ratio of employers' search. The empirical analysis is based
on a small Dutch data set containing individual information on filled
vacancies. It is found that firms that use advertisements during
recruitment are sensitive to labour market conditions; their search cost
per applicant rises (drops) in tight (slack) labour markets because of the
diminished ability of advertisements to generate applicants in tight
labour markets. Furthermore, it is found that the high search cost
incurred by posting identical vacancies is more than compensated for by
the benefits from having a larger flow of applicants.
Journal: Applied Economics
Pages: 1597-1606
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217069
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217069
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1597-1606
Template-Type: ReDIF-Article 1.0
Author-Name: Erdal Atukeren
Author-X-Name-First: Erdal
Author-X-Name-Last: Atukeren
Title: Measuring the strength of cointegration and Granger-causality
Abstract:
This study uses Poskitt and Tremayne's (1987) posterior odds ratio test
and the associated model portfolio approach to measure the strength of the
evidence from cointegration and Granger-causality tests. As an
illustration of the methodology, the bivariate relationship between money
and income in Canada is re-examined using historical data.
Journal: Applied Economics
Pages: 1607-1614
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500214173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214173
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1607-1614
Template-Type: ReDIF-Article 1.0
Author-Name: Mariarosaria Agostino
Author-X-Name-First: Mariarosaria
Author-X-Name-Last: Agostino
Author-Name: Leone Leonida
Author-X-Name-First: Leone
Author-X-Name-Last: Leonida
Author-Name: Francesco Trivieri
Author-X-Name-First: Francesco
Author-X-Name-Last: Trivieri
Title: Profits persistence and ownership: evidence from the Italian banking sector
Abstract:
The hypothesis that ownership structure affects persistence of profits in
the Italian banking industry is tested. The time-invariant components of
ROA and ROE are regressed against ownership concentration and the fraction
of shares held by the major shareholders. The results show that abnormal
profits increase if ownership is concentrated in foundations and banks,
and decrease if market forces are allowed to operate.
Journal: Applied Economics
Pages: 1615-1621
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500214223
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214223
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1615-1621
Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Liang Chen
Author-X-Name-First: Chao-Liang
Author-X-Name-Last: Chen
Title: The funding for a Defined Benefit (DB) pension plan based on the fair valuation of the plan's insolvency risk
Abstract:
This study provides a contingent claims valuation approach model to value
a sponsor's claim on a salary-related, defined benefit (DB) pension plan.
The model is further developed to numerically estimate a suggested optimal
contribution cost that allows the sponsor to fairly bear the risk of the
plan's insolvency. The results demonstrate that the traditional actuarial
valuation underestimates the cost of pension benefits, and that the normal
contribution cost is not enough for the sponsor to fairly charge the value
of bearing the plan's insolvency.
Journal: Applied Economics
Pages: 1623-1633
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500215279
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215279
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1623-1633
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Bates
Author-X-Name-First: Samuel
Author-X-Name-Last: Bates
Title: Global measure of causal intensity between real and financial spheres
Abstract:
The lack of theoretical consensus on the causality direction between real
and financial spheres as well as on the macroeconomic importance of
transmission channels drive to an empirical approach of the links between
the two areas. The aim of this paper is to offer a method for the analysis
of the causal structure between the two spheres according to the
transmission channels. It becomes possible globally on short and long runs
for a given country to better surround mechanisms intervening inside the
feedback between real and financial areas.
Journal: Applied Economics
Pages: 1635-1642
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500214306
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214306
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1635-1642
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Ouellette
Author-X-Name-First: Pierre
Author-X-Name-Last: Ouellette
Author-Name: Valerie Vierstraete
Author-X-Name-First: Valerie
Author-X-Name-Last: Vierstraete
Title: An evaluation of the efficiency of Quebec's school boards using the Data Envelopment Analysis method
Abstract:
In this paper the efficiency of Quebec's school boards during a period of
severe cutbacks in their finance is examined. Using Data Envelopment
Analysis, the average efficiency is found to be relatively high. In spite
of this, potential savings could be achieved if school boards were fully
efficient. Results were found to depend heavily on school boards' socio-
economic conditions, thus they were subjected to Tobit analysis and the
boards' corrected efficiencies recalculated. It is concluded that
inefficiencies cost 800 million dollars of which 200 million dollars come
from unfavourable socio-economic conditions.
Journal: Applied Economics
Pages: 1643-1653
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500173247
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500173247
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1643-1653
Template-Type: ReDIF-Article 1.0
Author-Name: Rob Euwals
Author-X-Name-First: Rob
Author-X-Name-Last: Euwals
Author-Name: Melanie Ward
Author-X-Name-First: Melanie
Author-X-Name-Last: Ward
Title: What matters most: teaching or research? Empirical evidence on the remuneration of British academics
Abstract:
This paper examines the impact of productivity on pay within academia,
drawing upon a detailed dataset of academics from five old established
universities. Results outline the importance of publication; grant receipt
and teaching quality in the determination of pay. A large financial
penalty to time out of the profession is revealed, which, with
productivity variables, explains away the gender salary gap. The
relationship between teaching and research is investigated, and we find
some evidence in support of the hypothesis that productive researchers are
successful teachers. Results on reservation salary suggest that the best
academics are willing to stay within the profession.
Journal: Applied Economics
Pages: 1655-1672
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500181620
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500181620
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1655-1672
Template-Type: ReDIF-Article 1.0
Author-Name: Pablo de Andres-Alonso
Author-X-Name-First: Pablo
Author-X-Name-Last: de Andres-Alonso
Author-Name: Valentin Azofra-Palenzuela
Author-X-Name-First: Valentin
Author-X-Name-Last: Azofra-Palenzuela
Author-Name: Gabriel de la Fuente-Herrero
Author-X-Name-First: Gabriel
Author-X-Name-Last: de la Fuente-Herrero
Title: Real options as a component of the market value of stocks: evidence from the Spanish Stock Market
Abstract:
This paper aims to examine how investors' expectations about the value of
a firm's real options are reflected in the price of its stocks. If the
real-option approach is correct, then the efficient-market hypothesis
predicts that stock prices will reflect the available information relative
to the real options held by firms and their ability to identify, acquire,
maintain and exercise them. The role of investment irreversibility,
operating and financial flexibility, business and geographical
diversification, and size are examined as indicators of a firm's real
option strategy. The empirical analysis of a panel of 101 companies listed
on the Spanish Stock Exchange during the period 1991-1997 provides
evidence consistent with predictions. The market value of the real option
portfolio is significantly and positively related to business
diversification, asset irreversibility and operating leverage, and
negatively related to size. In addition, financial leverage and
geographical diversification are not significantly related to our proxies
for the market value of real options. These results are robust even after
controlling for industry, and alternative measures of investment
flexibility and business diversification.
Journal: Applied Economics
Pages: 1673-1691
Issue: 14
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500181778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500181778
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Handle: RePEc:taf:applec:v:37:y:2005:i:14:p:1673-1691
Template-Type: ReDIF-Article 1.0
Author-Name: Damiano Kulundu Manda
Author-X-Name-First: Damiano Kulundu
Author-X-Name-Last: Manda
Author-Name: Arne Bigsten
Author-X-Name-First: Arne
Author-X-Name-Last: Bigsten
Author-Name: Germano Mwabu
Author-X-Name-First: Germano
Author-X-Name-Last: Mwabu
Title: Trade union membership and earnings in Kenyan manufacturing firms
Abstract:
This study analyses the effect of trade unions on male earnings in the
Kenyan manufacturing sector using a regression method, which takes into
account endogeneity of the union status of workers. In contrast to earlier
studies of the Kenyan labour market that report a negative effect of
unions on wages, a positive effect is found. The study further shows that
elite workers tend to abstain from union membership.
Journal: Applied Economics
Pages: 1693-1704
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118903
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118903
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1693-1704
Template-Type: ReDIF-Article 1.0
Author-Name: Luca Pieroni
Author-X-Name-First: Luca
Author-X-Name-Last: Pieroni
Author-Name: Matteo Ricciarelli
Author-X-Name-First: Matteo
Author-X-Name-Last: Ricciarelli
Title: Testing rational expectations in primary commodity markets
Abstract:
The standard method used to test the rational expectations hypothesis
(REH) in primary commodity markets is by means of a structural approach.
In this paper, a parsimonious vector error correction model in the price
and stock equation is derived that maintains almost complete information
of the underlying structural model. The empirical section utilizes
1955-2000 US copper data to investigate the properties of the model
extended to the macroeconomic variables. The estimation results are
statistically robust and are in keeping with economic theory. Three
different results are found: (i) price adjustments depend on the short-run
dynamic of the stock equation, whereas the long-run dynamic is
statistically rejected; (ii) the over-identification restrictions,
including the test for the REH, are not rejected; (iii) the forecast
simulations on price are well performed.
Journal: Applied Economics
Pages: 1705-1718
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500173205
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500173205
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1705-1718
Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Menkhoff
Author-X-Name-First: Lukas
Author-X-Name-Last: Menkhoff
Author-Name: Ulrich Schmidt
Author-X-Name-First: Ulrich
Author-X-Name-Last: Schmidt
Title: The use of trading strategies by fund managers: some first survey evidence
Abstract:
A questionnaire survey has found that most fund managers rely on the
strategies of buy-&-hold, momentum and contrarian trading. These
strategies are typically applied mutually. Their use is rooted in the
attributes and beliefs of the respective fund managers: buy-&-hold traders
are fundamentally oriented, risk averse and are less (over)confident than
others. Momentum traders appear as the least risk-averse professionals,
going aggressively with the trend. Contrarian traders, however, show signs
of overconfidence and peculiar risk aversion, both indicating difficulties
in successful strategy implementation. The behavioural patterns revealed
are not easily reconciled with efficient markets.
Journal: Applied Economics
Pages: 1719-1730
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217606
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217606
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1719-1730
Template-Type: ReDIF-Article 1.0
Author-Name: R. Scott Hacker
Author-X-Name-First: R. Scott
Author-X-Name-Last: Hacker
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Title: The effect of regime shifts on the long-run relationships for Swedish money demand
Abstract:
When the possibility of an unknown structural break is allowed and it is
taken into account we find a significant long-run relationship between
Swedish money demand and its determinants that is not found when no break
is considered. The estimated elasticities show that money demand is more
responsive to its determinants in the period after the break than before.
Possible underlying reasons for the occurrence of this break and its
implications are explained.
Journal: Applied Economics
Pages: 1731-1736
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500215444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215444
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1731-1736
Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Bezemer
Author-X-Name-First: Dirk
Author-X-Name-Last: Bezemer
Author-Name: Kelvin Balcombe
Author-X-Name-First: Kelvin
Author-X-Name-Last: Balcombe
Author-Name: Junior Davis
Author-X-Name-First: Junior
Author-X-Name-Last: Davis
Author-Name: Iain Fraser
Author-X-Name-First: Iain
Author-X-Name-Last: Fraser
Title: Livelihoods and farm efficiency in rural Georgia
Abstract:
This study contributes to the literature on the role of livelihood
strategies in rural growth and poverty reduction. It distinguishes between
livelihood diversity strategies that contribute to sustainable growth in
household incomes, and those that mainly have a 'coping' function. It
suggests that typically, the contribution of livelihood diversity to
growing household income is through relaxing dependence on credit for
access to capital. In this scenario, livelihood diversity would lead to
higher technical efficiency in agriculture via investment and thereby to
higher household incomes. Survey data from Georgia are introduced and used
to test these hypotheses using a Bayesian stochastic frontier approach.
The findings are relevant to defining more clearly the scope and aims of
policies to stimulate the rural non-farm economy in developing and
transition countries.
Journal: Applied Economics
Pages: 1737-1745
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500215253
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215253
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1737-1745
Template-Type: ReDIF-Article 1.0
Author-Name: Ebru Guven Solakoglu
Author-X-Name-First: Ebru Guven
Author-X-Name-Last: Solakoglu
Author-Name: Barry Goodwin
Author-X-Name-First: Barry
Author-X-Name-Last: Goodwin
Title: The effects of railroad development on price convergence among the states of the USA from 1866 to 1906
Abstract:
This study examines the effects of the reduced transaction costs on the
price behaviours in the second half of the nineteenth century, where
declines in transaction costs were mainly caused by railroad development
during this period. It employs a panel test introduced by Levin and Lin
(1992) on the convergence of wheat and corn prices using a panel of 48 US
states from 1866 to 1906. The results show that, by decreasing
transportation costs, railroads played an important role in price
convergence among states of the USA for wheat and corn during the
postbellum period.
Journal: Applied Economics
Pages: 1747-1761
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/0003684052000344849
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0003684052000344849
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1747-1761
Template-Type: ReDIF-Article 1.0
Author-Name: Stanley Kardasz
Author-X-Name-First: Stanley
Author-X-Name-Last: Kardasz
Author-Name: Kenneth Stollery
Author-X-Name-First: Kenneth
Author-X-Name-Last: Stollery
Title: Exchange rate pass-through in Canadian manufacturing: its direct and indirect components
Abstract:
Changes in the exchange rate have direct and indirect effects on the
prices of domestically produced goods and imports in the domestic market.
The direct effects originate with the impact of the exchange rate on the
marginal cost of imports; the indirect effects, with its impact on the
price of materials used by domestic producers and hence on their marginal
costs. Direct and indirect exchange rate pass-through elasticities are
estimated for 37 Canadian manufacturing industries and their determinants
are examined in a cross-section analysis. It is found that the direct and
indirect elasticities are approximately equal in size for domestic goods,
while the direct effect is dominant for imports. For a small number of
industries, the net result of the direct and indirect effects is that a
depreciation of the domestic currency increases the competitiveness of
imports, contrary to conventional analysis. Important determinants of the
direct (indirect) elasticities are the import share and non-tariff
barriers (the responsiveness of domestic costs to changes in the exchange
rate, and concentration).
Journal: Applied Economics
Pages: 1763-1776
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500215683
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215683
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1763-1776
Template-Type: ReDIF-Article 1.0
Author-Name: Athanasia Mavrommati
Author-X-Name-First: Athanasia
Author-X-Name-Last: Mavrommati
Author-Name: Athanasios Papadopoulos
Author-X-Name-First: Athanasios
Author-X-Name-Last: Papadopoulos
Title: Measuring advertising intensity and intangible capital in the Greek food industry
Abstract:
The objective of the present paper is to examine market conduct and its
determinants in the Greek food industry and to measure how and to what
degree the industry and the firm's structural characteristics affect
advertising intensity. An advertising intensity model giving emphasis to
intangible capital is formulated. Data from ICAP have been used on a
four-digit classification for the food industry during the 1990-1997
period. The empirical results indicate that intangible capital positively
affects the advertising intensity of the firm and plays an important role
in strategies that affect total cost, demand and structure of the market.
Journal: Applied Economics
Pages: 1777-1787
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217267
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217267
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1777-1787
Template-Type: ReDIF-Article 1.0
Author-Name: Huilin Lin
Author-X-Name-First: Huilin
Author-X-Name-Last: Lin
Author-Name: Ryh-Song Yeh
Author-X-Name-First: Ryh-Song
Author-X-Name-Last: Yeh
Title: The interdependence between FDI and R&D: an application of an endogenous switching model to Taiwan's electronics industry
Abstract:
Foreign direct investment (FDI) and research & development (R&D) are
mutually dependent and should be treated as endogenous variables in
empirical studies. An endogenous switching regression model is used to
examine the mutual effect of FDI and R&D in Taiwan's electronics industry.
The empirical results show that FDI and R&D are positively related and do
reinforce each other. Unbiased coefficients are obtained as they are
compared to those estimates if FDI and R&D are treated as exogenous
variables. The results have a strong public policy implication for
Taiwan's foreign direct investment and can be further used to estimate the
difference in R&D expenditures between FDI and non-FDI firms.
Journal: Applied Economics
Pages: 1789-1799
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217093
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1789-1799
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Browne
Author-X-Name-First: Frank
Author-X-Name-Last: Browne
Author-Name: David Doran
Author-X-Name-First: David
Author-X-Name-Last: Doran
Title: Do equity index industry groups improve forecasts of inflation and production? A US analysis
Abstract:
This study develops a new financial market indicator, which may be a
useful addition to analysing real activity in the US. By taking the ratio
of the price return of equity industry groups of the S&P 500 over a
benchmark industry group, in this case taken to be the Utilities industry
group, an indicator is created which represents the price return
performance specific to each individual industry. We then perform
recursive pseudo out-of-sample bivariate forecasts of future changes in
the Industrial Production Index (IPI) and the Consumer Price Index (CPI)
at 3-month, 6-month and 12-month horizons using each of the indicators and
compare results against an AR forecast. The results of the bivariate
forecasts using a number of the indicators produce better forecasts of
changes in the IPI and are also significant for causality, both for the
full sample period and when tested recursively. Bivariate forecasts of
changes to the CPI, however, do not improve upon the AR forecasts.
Journal: Applied Economics
Pages: 1801-1812
Issue: 15
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500215394
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Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1801-1812
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Paul Chavas
Author-X-Name-First: Jean-Paul
Author-X-Name-Last: Chavas
Author-Name: Kwansoo Kim
Author-X-Name-First: Kwansoo
Author-X-Name-Last: Kim
Title: Cointegration relationships and hedonic pricing of differentiated commodities: an application to price dynamics in the US dairy sector
Abstract:
This study investigates the implications of hedonic pricing for price
dynamics of differentiated commodities. A conceptual model of hedonic
pricing is developed under a Leontief technology, showing how commodity
prices reflect the underlying value of their components. Implications for
the existence of cointegration relationships among commodity prices are
derived. An application to the pricing and dynamics of selected US dairy
commodities is presented. It provides evidence on the role of component
valuation in the dynamics of dairy commodity prices in the short run as
well as in the long run. Distinguishing between market regime and
government regime (when the government price support is active), the
analysis finds significant differences in dairy price dynamics between the
two regimes.
Journal: Applied Economics
Pages: 1813-1827
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500215311
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1813-1827
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Arango
Author-X-Name-First: Luis
Author-X-Name-Last: Arango
Author-Name: Carlos Posada
Author-X-Name-First: Carlos
Author-X-Name-Last: Posada
Title: Labour participation in Colombia
Abstract:
A model is estimated for the decision of participating in the labour
market for different groups of household members: not coupled (single,
divorced and widow) women and men and coupled (married and in permanent
union) women and men. The differences among these groups are significant.
Probit models are estimated for the period 1984 : 1-2000 : 4 using the
National Housing Survey. The neoclassical static model performs fairly
well in describing the empirical determinants of the decision of
participating. In terms of sign and significance of estimated coefficients
the best performance of the model is reached for women. In terms of
prediction the model proves useful for not coupled persons. Except for the
variable named 'children aged less than six years', all variables perform
well.
Journal: Applied Economics
Pages: 1829-1838
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118994
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1829-1838
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Yen
Author-X-Name-First: Steven
Author-X-Name-Last: Yen
Title: Zero observations and gender differences in cigarette consumption
Abstract:
Censoring mechanisms and gender differences are investigated for
cigarette consumption by individuals in the USA. The Gaussian
single-hurdle model is proposed which generalizes the specifications of
Cragg (1971) and Heckman (1979) and allows examination of the empirical
relevance of the two censoring mechanisms in the existing double-hurdle
model. The proposed model performs better than Cragg's and Heckman's
models but not as well as the double-hurdle model and also produces
different elasticity estimates. The hypothesis of equal consumption
parameters is rejected and demand elasticities found to differ between men
and women. Income does not play a role and age has conflicting effects on
the probability and level of cigarette smoking. Older individuals are less
likely to smoke but, conditional on smoking, consume more cigarettes than
their younger counterparts. Education has negative effects on the
probability and level of smoking and can be an effective tool to curtail
cigarette smoking.
Journal: Applied Economics
Pages: 1839-1849
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500214322
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214322
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1839-1849
Template-Type: ReDIF-Article 1.0
Author-Name: Rajesh Mehta
Author-X-Name-First: Rajesh
Author-X-Name-Last: Mehta
Author-Name: Ashok Parikh
Author-X-Name-First: Ashok
Author-X-Name-Last: Parikh
Title: Impact of trade liberalization on import demands in India: a panel data analysis for commodity groups
Abstract:
The objectives of this study are to examine the impact of liberalization
on price elasticities of imports at a commodity level for broad commodity
groups and at an aggregate level for the Indian economy over the period
1993-1997. Liberalization is implemented by reducing tariff and non-tariff
barriers and relaxing exchange controls. The impact of tariffs and market
based exchange rate is introduced in the import price of the commodity.
Relative price (import/domestic) elasticities for each commodity group
using panel data of six countries over five years are estimated. For the
Indian economy, relative price elasticities for each of the years at an
aggregate level using data for twenty commodity groups as observations are
obtained and these show that the price elasticity tends to rise with the
increase in liberalization when tariff rates are reduced.
Journal: Applied Economics
Pages: 1851-1863
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217945
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217945
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1851-1863
Template-Type: ReDIF-Article 1.0
Author-Name: Vasilios Patsouratis
Author-X-Name-First: Vasilios
Author-X-Name-Last: Patsouratis
Author-Name: Zoe Frangouli
Author-X-Name-First: Zoe
Author-X-Name-Last: Frangouli
Author-Name: George Anastasopoulos
Author-X-Name-First: George
Author-X-Name-Last: Anastasopoulos
Title: Competition in tourism among the Mediterranean countries
Abstract:
This paper examines tourism competition among the Mediterranean countries
with particular emphasis on Greece. The estimated model includes as
explanatory variables an income index, a price index of the host country,
a price index of the competitors (Spain, Portugal and Italy) and exchange
rate. The results show that the main determinants of Greece's tourism
demand are both price indexes and exchange rate. They also show that Spain
seems to be Greece's main competitor.
Journal: Applied Economics
Pages: 1865-1870
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217226
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1865-1870
Template-Type: ReDIF-Article 1.0
Author-Name: Ofer Azar
Author-X-Name-First: Ofer
Author-X-Name-Last: Azar
Title: Who do we tip and why? An empirical investigation
Abstract:
An important question about social norms is whether they are created to
increase welfare. This is addressed by examining the characteristics of
tipped and non-tipped occupations. Tipping prevalence is negatively
correlated with worker's income and consumer's monitoring ability and
positively with consumer's income and closeness between the worker and the
consumer. The results refute a common belief that tipping exists to
improve economic efficiency by lowering monitoring costs. Tipping,
however, is more prevalent when consumers feel empathy and compassion for
workers and want to show gratitude for good service, suggesting that
tipping might increase welfare if welfare includes psychological utility.
Journal: Applied Economics
Pages: 1871-1879
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500119018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500119018
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1871-1879
Template-Type: ReDIF-Article 1.0
Author-Name: Sohrab Abizadeh
Author-X-Name-First: Sohrab
Author-X-Name-Last: Abizadeh
Title: An analysis of government expenditure and trade liberalization
Abstract:
The effect of trade liberalization on government's role in the economy is
investigated. It is shown that, contrary to received expectations, as
small open economies liberalize their trade, the size of government
decreases.
Journal: Applied Economics
Pages: 1881-1884
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500173049
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500173049
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1881-1884
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Peraita
Author-X-Name-First: Carlos
Author-X-Name-Last: Peraita
Title: Firm-sponsored training in regulated labour markets: evidence from Spain
Abstract:
Using data from the 1994 European Community Household Panel Survey, the
author examines who receives formal firm-sponsored training in Spain. The
author finds that the distribution of firm-sponsored training in the work
force is uneven and concentrated among more skilled workers in the upper
deciles of the wage distribution. The data show that the likelihood of
receiving firm-sponsored training for a low education employee is much
lower. Also, the better-educated employees in high wage occupations of the
largest establishments have higher probabilities of receiving specific
training. Spain has a highly regulated labour market, and the labour
market frictions and institutions compress and distort the structure of
wages. However, the results suggest that the highly compressed wage
structure do not provide firms with the incentive to invest in general
training.
Journal: Applied Economics
Pages: 1885-1898
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500194102
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500194102
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1885-1898
Template-Type: ReDIF-Article 1.0
Author-Name: Asli Gunay
Author-X-Name-First: Asli
Author-X-Name-Last: Gunay
Author-Name: Kivilcim Metin-Ozcan
Author-X-Name-First: Kivilcim
Author-X-Name-Last: Metin-Ozcan
Author-Name: Erinc Yeldan
Author-X-Name-First: Erinc
Author-X-Name-Last: Yeldan
Title: Real wages, profit margins and inflation in Turkish manufacturing under post-liberalization
Abstract:
This article reports investigations into the behaviour of gross profit
margins (mark-ups) in Turkish manufacturing industries for the post-1980
liberalization period in relation to price inflation, trade liberalization
(openness) and real wage costs. Panel data econometrics over 29 subsectors
of Turkish manufacturing are used over the period 1980-1996. Results
suggest that profit margins are positively and significantly related both
to price inflation and real wage costs. However, openness is found to have
very little impact on profit margins.
Journal: Applied Economics
Pages: 1899-1905
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217903
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217903
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1899-1905
Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Mantalos
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Mantalos
Author-Name: Ghazi Shukur
Author-X-Name-First: Ghazi
Author-X-Name-Last: Shukur
Title: The effect of the GARCH(1, 1) on autocorrelation tests in dynamic systems of equations
Abstract:
Using Monte Carlo methods, the properties of systemwise generalizations
of the Breusch-Godfrey test for autocorrelated errors are studied when
there are some kinds of GARCH effects among the errors. The analysis,
regarding the size of the test, reveals that the GARCH have considerable
effects of the properties of the test regarding the size, especially in
large systems of equations. The corrected LR tests, however, have been
shown to perform satisfactorily in small systems when the errors are white
noise or they have low GARCH effects, whilst the commonly used TR2 test
behaves badly even in single equations. All tests perform badly, however,
when the number of equations increases and the GARCH effect is strong. As
regards the power of the test, the GARCH was not found to have any
significant effects on the power properties of the test.
Journal: Applied Economics
Pages: 1907-1913
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500118804
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1907-1913
Template-Type: ReDIF-Article 1.0
Author-Name: Ken Johnston
Author-X-Name-First: Ken
Author-X-Name-Last: Johnston
Author-Name: David Carter
Author-X-Name-First: David
Author-X-Name-Last: Carter
Author-Name: John Hatem
Author-X-Name-First: John
Author-X-Name-Last: Hatem
Title: Exchange rates, and fundamental variables: a semi-parametric analysis of binary choice
Abstract:
This study is motivated by the dearth of models that provide good
out-of-sample fit for exchange rates. That is, current models of exchange
rate behaviour are poor predictors of subsequent currency movements. An
attempt is made to determine if the relationship between exchange rates
and fundamental variables can help explain the more extreme exchange rate
movements (distributional switches). Models are developed that relate
fundamental economic variables to the resulting estimates based on the
mixture of normal probability distributions. Parametric estimation
procedures (Logit and Probit) are compared with a semi-parametric
technique, maximum score estimation (MSCORE), which is relatively untested
in the field of finance. The fundamental variables of these models include
information on trade balances, money supply changes, interest rate
changes, real economic growth, relative inflation rates and changes in
stock market indexes. Classification results favour MSCORE. Implications
of results and improvements in methodology are discussed.
Journal: Applied Economics
Pages: 1915-1924
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217077
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1915-1924
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Gallegati
Author-X-Name-First: Marco
Author-X-Name-Last: Gallegati
Title: Financial constraints and the balance sheet channel: a re-interpretation
Abstract:
Aggregate demand models extending IS/LM fixed price framework yield an
enhancement mechanism of the traditional monetary transmission mechanism,
the credit channel, which, according to the credit view, works through the
'balance sheet channel' and the 'bank lending channel'. In this paper the
augmented IS/LM model is modified assuming that investments may be
financed by both internal and external sources of funds. The inclusion of
internal funds in the augmented IS/LM fixed price model suggests a
different interpretation of the 'balance sheet channel' as an enhancement
mechanism amplifying monetary policy effects through the quantity rather
than the cost of borrowing. Thus, changes in borrowers' net worth over the
cycle can amplify and propagate output fluctuations directly rather than
indirectly as in the traditional interpretation of the balance sheet
channel. The empirical analysis of the monetary transmission mechanism for
Italy in the last decade accords with the interpretation of the balance
sheet channel proposed in this paper.
Journal: Applied Economics
Pages: 1925-1933
Issue: 16
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500214256
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500214256
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1925-1933
Template-Type: ReDIF-Article 1.0
Author-Name: Ross Finnie
Author-X-Name-First: Ross
Author-X-Name-Last: Finnie
Author-Name: Ronald Meng
Author-X-Name-First: Ronald
Author-X-Name-Last: Meng
Title: Literacy and labour market outcomes: self-assessment versus test score measures
Abstract:
This paper looks at the determinants of literacy and the relation between
literacy and labour market outcomes while focusing on comparisons of
self-assessment versus test score measures of literacy. The test score
measure performs considerably better than the self-assessments when
literacy is treated as an outcome variable in terms of the overall fit of
the model and the specific coefficient estimates, with the
self-assessments sometimes actually generating wrongly signed parameters.
The test score measure also performs much better as an explanatory
variable in the employment models, with the self-assessment variable
generating significant underestimates of the effects of literacy on the
probability of being employed. Finally, the test score is also superior in
the income models, although the self-assessment measure is at least a
reasonably good performer in this regard, suggesting that the main results
reported in much of the existing literature (based on such measures)
should perhaps be taken as good representations of the true underlying
relationships.
Journal: Applied Economics
Pages: 1935-1951
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500244519
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500244519
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1935-1951
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Cresti
Author-X-Name-First: Barbara
Author-X-Name-Last: Cresti
Title: US domestic barter: an empirical investigation
Abstract:
This paper studies the barter industry developed in North America during
the 1950s, pointing out some of its main characteristics. Thus, it
examines its two main sectors: (i) corporate barter and (ii) commercial
barter. Contrary to expectations, the analysis of official data shows that
this phenomenon is essentially pro-cyclical for the commercial barter
component. Moreover, commercial barter activity turns out to be
complementary to the cash economy. While the two sectors display some
differences in their pattern, they both help firms to increase their
profits.
Journal: Applied Economics
Pages: 1953-1966
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500193559
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193559
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1953-1966
Template-Type: ReDIF-Article 1.0
Author-Name: Henry Kinnucan
Author-X-Name-First: Henry
Author-X-Name-Last: Kinnucan
Author-Name: Øystein Myrland
Author-X-Name-First: Øystein
Author-X-Name-Last: Myrland
Title: Effects of income growth and tariffs on the world salmon market
Abstract:
The effects of income growth and tariffs on salmon prices, production,
and trade flows are analysed using total elasticities derived from an
equilibrium displacement model of the world salmon market. Results suggest
the total income elasticity in world trade for salmon is about one, which
means imports worldwide will grow at about the same pace as world income.
However, owing in part to policies that restrict supply response, not all
exporters will share evenly in this growth, with UK producers benefiting
the most and Norwegian producers the least. Within importing countries,
imports are more responsive to income growth than is domestic production,
which means protectionist pressures are apt to increase with affluence. US
tariffs on imports from Norway and Chile are counterproductive in that
they reduce world imports with little effect on the US price. Norway's
feed quota reduces the efficacy of US tariffs, makes imports less
responsive to income, and increases price volatility. Hence, quota
elimination may yield producer benefits in excess of producer losses
associated with a lower world price.
Journal: Applied Economics
Pages: 1967-1978
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217523
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217523
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1967-1978
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: The saving and investment nexus for China: evidence from cointegration tests
Abstract:
The saving and investment nexus as postulated by Feldstein and Horioka
(FH) (1980) is revisited. The saving investment correlation for China is
estimated over the periods 1952-1998 and 1952-1994, the latter culminating
in a period of fixed exchange rate regime. Amongst the key results, it is
found that saving and investment are correlated for China for both the
period of the fixed exchange rate and the entire sample period. With high
saving-investment correlation, the results suggest that the Chinese
economy is in conformity with the FH hypothesis. This is a valid outcome,
for in China capital mobility was fairly restricted over the 1952-1994
period as indicated by the relatively low foreign direct investment.
Journal: Applied Economics
Pages: 1979-1990
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500278103
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500278103
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1979-1990
Template-Type: ReDIF-Article 1.0
Author-Name: Sharanjit Uppal
Author-X-Name-First: Sharanjit
Author-X-Name-Last: Uppal
Title: Demand for home modifications/specialized features: the case of disabled
Abstract:
Existing research dealing with the presence of modifications in the homes
of individuals with disabilities in Canada has found severity of
disability to be negatively related to the demand for modifications, a
result that appears to be counterintuitive. In this paper, a model is
estimated using data from the 1991 Health and Activity Limitation Survey
conducted by Statistics Canada. The results show that severity of
disability has a strong positive effect on the demand for
modifications/specialized features both inside a residence and those used
to access a residence.
Journal: Applied Economics
Pages: 1991-1999
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500244394
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500244394
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:1991-1999
Template-Type: ReDIF-Article 1.0
Author-Name: Toni Mora
Author-X-Name-First: Toni
Author-X-Name-Last: Mora
Author-Name: Jordi Lopez-Tamayo
Author-X-Name-First: Jordi
Author-X-Name-Last: Lopez-Tamayo
Author-Name: Jordi Surinach
Author-X-Name-First: Jordi
Author-X-Name-Last: Surinach
Title: Are wages and productivity converging simultaneously in Euro-area countries?
Abstract:
A convergence analysis is applied to wages and productivity for Euro-area
countries in the period from 1981 to 2001. The results show a reduction in
the dispersion of wages and unit labour costs, but not in productivity.
Different patterns are found for real and nominal wages: higher levels of
inflation in countries with higher growth rates of unit labour costs have
caused nominal wages to move towards equalization. Moreover, disparities
in all the variables have remained more or less the same since 1997,
suggesting that the establishment of a single currency area has not
accelerated the process of wage equalization.
Journal: Applied Economics
Pages: 2001-2008
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217655
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217655
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:2001-2008
Template-Type: ReDIF-Article 1.0
Author-Name: D. E. Allen
Author-X-Name-First: D. E.
Author-X-Name-Last: Allen
Author-Name: H. M. Salim
Author-X-Name-First: H. M.
Author-X-Name-Last: Salim
Title: Forecasting profitability and earnings: a study of the UK market (1982-2000)
Abstract:
An approach recently developed by Fama and French (2000) is applied to
the study of whether UK company profitability is mean-reverting. A sample
of roughly 987 firms per year for a period from 1982-2000 is used, drawn
from Datastream. In a simple partial adjustment model convergence towards
the mean at a rate of about 25% per year is found. The results are very
similar in direction to those of Fama and French (2000) but the results do
not display significant non-linearities. The change in profitability
appears to be more strongly influenced by dividends in the UK.
Journal: Applied Economics
Pages: 2009-2018
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500244634
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500244634
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:2009-2018
Template-Type: ReDIF-Article 1.0
Author-Name: Lars Lindholt
Author-X-Name-First: Lars
Author-X-Name-Last: Lindholt
Title: Beyond Kyoto: backstop technologies and endogenous prices on CO2 permits and fossil fuels
Abstract:
This paper analyses the markets for fossil fuels given that the limits
the Kyoto Protocol sets on CO2 emissions from Annex B countries extend
beyond 2008-2012. A forward-looking model with endogenous prices for
fossil fuels is applied under different assumptions concerning the
technological progress for a carbon-free backstop technology. Both the
time-profile of the international permit price needed for the Kyoto
Forever targets as well as the implications through reduced demand and
lower producer prices for fossil fuels are calculated. The permit price
has to rise at least up to 2030 in order to fulfil the emission targets.
From then on the necessary permit price shows different future
developments, dependent on when the backstop technology starts to replace
oil. Since changes in the availability of the backstop technology shift
the time-profile of the permit price, the loss of petroleum wealth for oil
and gas producers varies between the scenarios, but is never more than
20%. Findings indicate that the reduction in gas revenues in OECD-Europe
after the introduction of the targets amounts to a yearly loss of
0.01-0.02% of their total GNP for half a century. The reduction in oil
revenues for OPEC is comparable to an annual loss of 2.9-5.4% of their GNP
over a period of sixty years.
Journal: Applied Economics
Pages: 2019-2036
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217697
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:2019-2036
Template-Type: ReDIF-Article 1.0
Author-Name: Tastan Huseyin
Author-X-Name-First: Tastan
Author-X-Name-Last: Huseyin
Title: Do real exchange rates contain a unit root? Evidence from Turkish data
Abstract:
This study explores whether the long-run purchasing power parity (PPP)
hypothesis holds for selected real exchange rates from Turkish economy
during the period 1982M1-2003M12. In addition to conventional unit root
tests, five different unit root test procedures have been applied
including efficient point-optimal tests, extended M tests and
GLS-detrended variants of DF tests, to four monthly real exchange rate
series defined in terms of both producer and consumer price indices. The
countries analysed are the USA, the UK, Germany and Italy which are major
trade partners of Turkey. Mixed evidence is found for the long-run PPP
hypothesis when real exchange rate is defined in terms of German DM and
Italian Lira. However, the empirical analysis reveals that the PPP
hypothesis holds strongly in the long-run for the UK£ and US$ based
real exchange rates series using either PPI or CPI. In corroboration with
other studies in the literature, the bias correlated half-life estimates
suggest relatively faster speeds of adjustment supporting the view that
the deviations from the PPP rate dissipate rather quickly for relatively
high inflation countries.
Journal: Applied Economics
Pages: 2037-2053
Issue: 17
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500244584
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500244584
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Handle: RePEc:taf:applec:v:37:y:2005:i:17:p:2037-2053
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Ledesma
Author-X-Name-First: Francisco
Author-X-Name-Last: Ledesma
Author-Name: Manuel Navarro
Author-X-Name-First: Manuel
Author-X-Name-Last: Navarro
Author-Name: Jorge Perez-Rodriguez
Author-X-Name-First: Jorge
Author-X-Name-Last: Perez-Rodriguez
Title: Return to tourist destination. Is it reputation, after all?
Abstract:
In this paper the hypothesis that repeated purchases in the tourism
markets could be considered as a consequence of asymmetrical information
problems is studied. This hypothesis is analysed with the case study of
the island of Tenerife using the estimation of a count data model. It was
found that the length of the stay and the information obtained from
previous visits and/or relatives and friends might increase the return to
a destination suggesting the presence of a reputation mechanism as
proposed by Shapiro (1983). The determinants of the willingness to return
were also estimated, confirming the main results.
Journal: Applied Economics
Pages: 2055-2065
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293474
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293474
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2055-2065
Template-Type: ReDIF-Article 1.0
Author-Name: Hongbin Li
Author-X-Name-First: Hongbin
Author-X-Name-Last: Li
Author-Name: Xianguo Yao
Author-X-Name-First: Xianguo
Author-X-Name-Last: Yao
Author-Name: Junsen Zhang
Author-X-Name-First: Junsen
Author-X-Name-Last: Zhang
Author-Name: Li-An Zhou
Author-X-Name-First: Li-An
Author-X-Name-Last: Zhou
Title: Parental childcare and children's educational attainment: evidence from China
Abstract:
This paper examines the determinants of child educational attainment. In
addition to those examined in previous studies, it is found that maternal
childcare is another important determinant of child educational
attainment. The results are robust after controlling for endogeneity. The
IV estimates show that once childcare time is controlled for, child health
does not have an effect on school enrolment age. This finding suggests
that omitting the childcare time may have biased the estimated effect of
child health on school enrolment in previous studies.
Journal: Applied Economics
Pages: 2067-2076
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293391
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293391
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2067-2076
Template-Type: ReDIF-Article 1.0
Author-Name: Bijou Yang
Author-X-Name-First: Bijou
Author-X-Name-Last: Yang
Author-Name: David Lester
Author-X-Name-First: David
Author-X-Name-Last: Lester
Title: Gender differences in e-commerce
Abstract:
Predictors of shopping online were compared for men and women using a
sample of 365 college students. For the men, the only predictor of
purchasing products online was the number of hours they spent online. For
women, the predictors of making purchases online included anxiety about
using computers and attitudes toward money, in addition to the number of
hours spent online. The results were examined using OLS and MLE (logit and
probit) regressions techniques, and the results from each technique
compared and contrasted.
Journal: Applied Economics
Pages: 2077-2089
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293292
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293292
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2077-2089
Template-Type: ReDIF-Article 1.0
Author-Name: Dyuti Banerjee
Author-X-Name-First: Dyuti
Author-X-Name-Last: Banerjee
Author-Name: Ahmed Khalid
Author-X-Name-First: Ahmed
Author-X-Name-Last: Khalid
Author-Name: Jan-Egbert Sturm
Author-X-Name-First: Jan-Egbert
Author-X-Name-Last: Sturm
Title: Socio-economic development and software piracy. An empirical assessment
Abstract:
The high rate of software piracy is a growing concern for software
developers as well as businesses and governments. It is argued here that
the piracy rate is influenced by expected benefits and costs to the
pirates. A model is developed using a set of variables that may affect
such benefits and costs and hence piracy rate in a country, and tested for
a large sample of 53 countries. The results of this paper suggest that the
existing socio-economic conditions and the lack of proper institutions in
developing and emerging economies may be responsible for high software
piracy rates. One may, therefore, infer that the current trends of
globalization and socio-economic development may help software piracy in
developing countries.
Journal: Applied Economics
Pages: 2091-2097
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293276
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293276
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2091-2097
Template-Type: ReDIF-Article 1.0
Author-Name: Marcio Laurini
Author-X-Name-First: Marcio
Author-X-Name-Last: Laurini
Author-Name: Eduardo Andrade
Author-X-Name-First: Eduardo
Author-X-Name-Last: Andrade
Author-Name: Pedro L. Valls Pereira
Author-X-Name-First: Pedro L. Valls
Author-X-Name-Last: Pereira
Title: Income convergence clubs for Brazilian Municipalities: a non-parametric analysis
Abstract:
This article analyses the evolution of relative per capita income
distribution of Brazilian municipalities over the period 1970-1996.
Analyses are based on non-parametric methodologies and do not assume
probability distributions or functional forms for the data. Two
convergence tests have been carried out - a test for sigma convergence
based on the bootstrap principle and a beta convergence test using
smoothing splines for the growth regressions. The results obtained
demonstrate the need to model the dynamics of income for Brazilian
municipalities as a process of convergence clubs, using the methodology of
transition matrices and stochastic kernels. The results show the formation
of two convergence clubs, a low income club formed by the municipalities
of the North and Northeast regions, and another high income club formed by
the municipalities of the Center-West, Southeast and South regions. The
formation of convergence clubs is confirmed by a bootstrap test for
multimodality.
Journal: Applied Economics
Pages: 2099-2118
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500218554
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218554
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2099-2118
Template-Type: ReDIF-Article 1.0
Author-Name: Teruyoshi Kobayashi
Author-X-Name-First: Teruyoshi
Author-X-Name-Last: Kobayashi
Title: Optimal monetary policy and the role of hybrid inflation-price-level targets
Abstract:
This study investigates the role of hybrid inflation-price-level targets
as a solution to the well-known stabilization bias problem that arises
under discretionary policies. The analysis shows that social welfare will
be improved by employing a weighted average of inflation and price level
as one of the central bank's target variables in addition to the output
gap growth target. The reason is that imposing the optimal hybrid target
will reduce inflation variability in a highly efficient way. In
particular, the optimal hybrid regime outperforms other previously
suggested regimes when the degree of inflation persistence is moderate.
Journal: Applied Economics
Pages: 2119-2125
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500119042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500119042
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2119-2125
Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Farsi
Author-X-Name-First: Mehdi
Author-X-Name-Last: Farsi
Author-Name: Massimo Filippini
Author-X-Name-First: Massimo
Author-X-Name-Last: Filippini
Author-Name: Michael Kuenzle
Author-X-Name-First: Michael
Author-X-Name-Last: Kuenzle
Title: Unobserved heterogeneity in stochastic cost frontier models: an application to Swiss nursing homes
Abstract:
This paper applies a number of stochastic cost frontier models to a panel
data set and compares their ability to distinguish unobserved
heterogeneity from inefficiency variation among firms. The main focus is
on Greene's 2005 panel data model that incorporates firm-specific effects
in a stochastic frontier framework. In cases where the unobserved
heterogeneity is correlated with explanatory variables, while the random
effects estimators can be biased the fixed effects model may overestimate
inefficiency. In line with Mundlak, a simple method is proposed to include
such correlations in random effects specification. The sample includes 36
Swiss nursing homes operating from 1993 to 2001. The results suggest that
the proposed specification can avoid the inconsistency problem while
keeping the inefficiency estimates unaffected.
Journal: Applied Economics
Pages: 2127-2141
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293201
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293201
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2127-2141
Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Chelley-Steeley
Author-X-Name-First: Patricia
Author-X-Name-Last: Chelley-Steeley
Author-Name: Claire Lavers
Author-X-Name-First: Claire
Author-X-Name-Last: Lavers
Title: The propensity to hedge using futures contracts: the case of potato futures contracts
Abstract:
This paper studies why UK non-financial firms hedge with potato futures
contracts. It is found that the financial characteristics of firms in the
sample play an important role in influencing the propensity to hedge. For
example, it is found that firms that hedge are on average larger than
firms that do not hedge. Firms that hedge also have more volatile
earnings. Furthermore, firms that do hedge appear to want to smooth
earnings to reduce the costs of financial distress and avoid entering the
highest tax threshold.
Journal: Applied Economics
Pages: 2143-2146
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500278152
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500278152
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2143-2146
Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Ballestero
Author-X-Name-First: Enrique
Author-X-Name-Last: Ballestero
Author-Name: David Pla-Santamaria
Author-X-Name-First: David
Author-X-Name-Last: Pla-Santamaria
Title: Grading the performance of market indicators with utility benchmarks selected from Footsie: a 2000 case study
Abstract:
The suitable choice of a benchmark portfolio is a critical problem prior
to using the information ratio, as the performance ranking of funds
depends on this choice. In this paper, a method to optimize benchmark
selection taking account of the investor's preferences is proposed and
applied to a case study of performance for 29 market indicators on stock
exchanges throughout the world. The method that relies on recent results
in optimization theory requires defining the opportunity set to select the
benchmarks, this set being Footsie in the case study. The computational
process and numerical results are presented through tables and figures,
the accuracy of the method being also numerically tested.
Journal: Applied Economics
Pages: 2147-2160
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500278053
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500278053
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2147-2160
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Are the Australian and New Zealand stock prices nonlinear with a unit root?
Abstract:
Whether or not stock prices are characterized by a unit root has
important implications for policy. For instance, by applying unit root
tests one can deduce whether stock returns can be predicted from previous
changes in prices. A finding of a unit root implies that stock returns
cannot be predicted. This paper investigates whether or not stock prices
for Australia and New Zealand can be characterized by a unit root process.
An unrestricted two-regime threshold autoregressive model is used with an
autoregressive unit root. Among the main results, it is found that the
stock prices of both countries are nonlinear processes that are
characterized by a unit root process, consistent with the efficient market
hypothesis.
Journal: Applied Economics
Pages: 2161-2166
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217887
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217887
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2161-2166
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Gordon
Author-X-Name-First: Daniel
Author-X-Name-Last: Gordon
Author-Name: Lars Osberg
Author-X-Name-First: Lars
Author-X-Name-Last: Osberg
Author-Name: Shelley Phipps
Author-X-Name-First: Shelley
Author-X-Name-Last: Phipps
Title: Sampling variability: some observations from a labour supply equation
Abstract:
In economics, the number of observations available for empirical work is
often predetermined. Researchers assume some large sample distribution and
carry through with measurement and testing applied to data sets of varying
sizes. The consequences of sampling variability are generally ignored. It
is shown in a re-sampling experiment, using data sets of different sizes
and estimating log-linear male labour supply equations, that a wide range
of what appears to be statistically supported estimates of the wage
elasticity of labour supply are generated. Testing based on bootstrapped
estimates shows that 4000 observations are required to reduce sampling
variability to statistically acceptable levels.
Journal: Applied Economics
Pages: 2167-2175
Issue: 18
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500215428
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215428
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Handle: RePEc:taf:applec:v:37:y:2005:i:18:p:2167-2175
Template-Type: ReDIF-Article 1.0
Author-Name: Elias Soukiazis
Author-X-Name-First: Elias
Author-X-Name-Last: Soukiazis
Author-Name: George Agiomirgianakis
Author-X-Name-First: George
Author-X-Name-Last: Agiomirgianakis
Title: Editorial - the world economy and European integration
Abstract:
Journal: Applied Economics
Pages: 2177-2178
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500363459
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500363459
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2177-2178
Template-Type: ReDIF-Article 1.0
Author-Name: Guanqun Tong
Author-X-Name-First: Guanqun
Author-X-Name-Last: Tong
Author-Name: Christopher Green
Author-X-Name-First: Christopher
Author-X-Name-Last: Green
Title: Pecking order or trade-off hypothesis? Evidence on the capital structure of Chinese companies
Abstract:
This study tests the pecking order and trade-off hypotheses of corporate
financing decisions using a cross-section of the largest Chinese listed
companies. The study is built on Allen (1993), Baskin (1989) and Adedeji
(1998) to set up three models in which trade-off and pecking order
theories give distinctively different predictions: (1) the determinants of
leverage; (2) the relationship between leverage and dividends; and (3) the
determinants of corporate investment. In model 1, a significant negative
correlation is found between leverage and profitability; in model 2 a
significant positive correlation between current leverage and past
dividends is found. These results broadly support the pecking order
hypothesis over trade-off theory. However, model 3 is inconclusive.
Overall, the results provide tentative support for the pecking order
hypothesis and demonstrate that a conventional model of corporate capital
structure can explain the financing behaviour of Chinese companies.
Journal: Applied Economics
Pages: 2179-2189
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500319873
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500319873
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2179-2189
Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Thiessen
Author-X-Name-First: Ulrich
Author-X-Name-Last: Thiessen
Title: Banking crises, regulation, and growth: the case of Russia
Abstract:
Recent empirical analyses of the relationship between financial system
development and economic growth find that financial system development
causes economic growth, is a good predictor of growth and that its impact
is relatively large. Moreover, the empirical literature predicts that the
adverse effects of banking crises on economic growth will rise in the
absence of an adequate response by the government. Hence, given the
Russian government's failure to respond adequately to the 1998 banking
crisis, Russia's strong economic growth since the crisis is a puzzle. This
study uses simulations to conclude that the growth costs of the 1998
crisis were larger than previously suggested. The adverse effects were
compensated by expansionary effects. The findings corroborate the
importance of financial development in promoting growth in transition
countries.
Journal: Applied Economics
Pages: 2191-2203
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500330474
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500330474
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2191-2203
Template-Type: ReDIF-Article 1.0
Author-Name: Helena Marques
Author-X-Name-First: Helena
Author-X-Name-Last: Marques
Title: The skilled u-shaped Europe: is it really and on which side does it stand?
Abstract:
This study estimates a quadratic sectoral wage equation for the member
countries of the enlarged EU where wages are a function of each country's
geographical location with respect to market size (new trade/New Economic
Geography (NEG) effect), human capital (HOS endowment effect), and
productivity (Ricardian effect). Wages react to these variables according
to a U-shaped curve. They react negatively to market size and productivity
of neighbouring countries, but react positively to skilled labour in
neighbouring countries. However, due to non-linearity, further increases
in these variables will induce a reversal in the outcome. Wages react more
to market size, less to skill endowments, and even less to productivity,
making economies of scale an important mechanism in explaining why firms
can afford to pay higher wages in larger markets. In addition, EU real
wages are significantly determined by country-specific characteristics
other than geography that push the real wages of old EU members upward and
pull the real wages of new EU members downward.
Journal: Applied Economics
Pages: 2205-2220
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500361214
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500361214
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2205-2220
Template-Type: ReDIF-Article 1.0
Author-Name: Tapan Biswas
Author-X-Name-First: Tapan
Author-X-Name-Last: Biswas
Author-Name: Jolian McHardy
Author-X-Name-First: Jolian
Author-X-Name-Last: McHardy
Title: Measuring the balance of intra-regional migration
Abstract:
An original index is introduced for measuring the extent of the overall
bilateral balance of migration among countries within a region which
allows comparisons of the balance over time as well as between regions and
various possible sub-regions. It is shown that having constructed the
index it is also possible to establish a weighting of the contribution of
each country to the overall degree of migration balance within a region.
The new index is applied to three sub-groupings of the European Union
(EU): (a) a mix of nine northern and southern EU15 countries; (b) seven
northern EU15 countries; and, (c) four southern EU15 countries. It is
shown that in each case migration in the 1990s was highly balanced and
improving significantly over time. However, there was a substantial
difference between the northern and southern countries with the former
enjoying significantly higher overall balance in migration than the
latter, although the rate of improvement in balance was much higher
amongst the southern countries. Finally, whilst the UK and Portugal were
persistently low contributors to the overall balance in EU migration,
Germany's contribution was the highest.
Journal: Applied Economics
Pages: 2221-2230
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500330532
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500330532
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2221-2230
Template-Type: ReDIF-Article 1.0
Author-Name: Jet Yee
Author-X-Name-First: Jet
Author-X-Name-Last: Yee
Author-Name: Mary Clare Ahearn
Author-X-Name-First: Mary Clare
Author-X-Name-Last: Ahearn
Title: Government policies and farm size: does the size concept matter?
Abstract:
This paper employs a panel data set of 48 states from 1960 to 1996 to
investigate the relationships of government policies (public agricultural
research and development (R&D), extension, and government commodity
program payments) to changes in farm size. Five different farm size
measures are considered (acres operated per farm, real land and building
value per farm, real cash receipts per farm, real cash receipts plus
government payments per farm, and an imputed measure of the real capital
service flow per farm) in order to make a more general statement about the
impacts of government policies on farm size. It was found that the impacts
of government policies on farm size are in general robust to the measure
of farm size considered. More specifically, it was found that R&D,
extension, and government payments all have positive effects on farm size.
Journal: Applied Economics
Pages: 2231-2238
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293904
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293904
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2231-2238
Template-Type: ReDIF-Article 1.0
Author-Name: Masao Tsuri
Author-X-Name-First: Masao
Author-X-Name-Last: Tsuri
Title: Discretionary deficit and its effects on Japanese economy
Abstract:
This paper identifies the discretionary component of Japan's public
deficits, which is included in the structural component in existing work.
The identification is done by collecting data and information of stimulus
packages. Discretionary expenditure, discretionary revenue, and cyclical
revenue are the main factors of increases in public deficits in the 1990s.
The revenue side has had greater impacts on deficits than expenditure. The
effects of stimulus packages are examined, using the discretionary
deficits. Stimulus policies have multiplier effects, while overall public
deficits have not. Results of analyses indicate that: (1) stimulus
packages have economic effects, (2) they also bring fiscal deficits, thus
can be additional constraints on the government budget, (3) public
deficits can be eased with GDP growth if tax is returned to the previous
level, (4) the public finance has a structural deficit.
Journal: Applied Economics
Pages: 2239-2249
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293870
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293870
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2239-2249
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Serkan Tosun
Author-X-Name-First: Mehmet Serkan
Author-X-Name-Last: Tosun
Author-Name: Sohrab Abizadeh
Author-X-Name-First: Sohrab
Author-X-Name-Last: Abizadeh
Title: Economic growth and tax components: an analysis of tax changes in OECD
Abstract:
The paper examines empirically the changes in the tax mix of the OECD
countries in response to economic growth from 1980 to 1999. It is found
that economic growth, measured by GDP per capita, has had a significant
effect on the tax mix of the OECD countries. Analysis reveals that
different taxes respond differently to the growth of GDP per capita. It is
shown that while the shares of personal and property taxes have responded
positively to economic growth, shares of the payroll and goods and
services taxes have shown a relative decline.
Journal: Applied Economics
Pages: 2251-2263
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293813
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2251-2263
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Ledesma-Rodriguez
Author-X-Name-First: Francisco
Author-X-Name-Last: Ledesma-Rodriguez
Author-Name: Manuel Navarro-Ibanez
Author-X-Name-First: Manuel
Author-X-Name-Last: Navarro-Ibanez
Author-Name: Jorge Perez-Rodriguez
Author-X-Name-First: Jorge
Author-X-Name-Last: Perez-Rodriguez
Author-Name: Simon Sosvilla-Rivero
Author-X-Name-First: Simon
Author-X-Name-Last: Sosvilla-Rivero
Title: Assessing the credibility of a target zone: evidence from the EMS
Abstract:
This paper provides some new evidence on the credibility of the Exchange
Rate Mechanism (ERM) of the European Monetary System (EMS). The study
differs from previous research in the literature in three main respects.
First, the main contribution is the use of several credibility indicators,
some of which have never been applied before to all of the currencies
under study. This allows one to strengthen the results obtained in this
paper. Second, a longer period than that of previous studies is analysed,
covering the complete EMS history. Third, a comparison has been made of
the prediction qualities of the different indicators, in order to explore
their ability to capture the main ERM events (realignments, changes in the
fluctuations bands and speculative pressures). Fourth, the indicators are
applied to the experience of the new, modified ERM linking the currencies
of non-euro area Member States to the euro, showing the relevance of this
approach in the near future with the enlargement of the European Union.
Journal: Applied Economics
Pages: 2265-2287
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293722
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293722
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2265-2287
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Requena-Silvente
Author-X-Name-First: Francisco
Author-X-Name-Last: Requena-Silvente
Author-Name: James Walker
Author-X-Name-First: James
Author-X-Name-Last: Walker
Title: Competition and product survival in the UK car market
Abstract:
The paper examines the extent to which inter- and intra-firm competition
influenced the survival of cars in the UK market between 1971 and 1998. It
is shown that, while competition influenced product survival in all market
segments within the UK car market, the nature of that competition differed
between them. In the small family and large family car segments,
intra-firm competition dominated inter-firm competition. In contrast, in
the luxury/sports car segment only inter-firm competition conditions
resulted in product survival. Evidence was also found that the
luxury/sports car segment has grown more competitive over time and that
firms marketing products in the family car segments have become
considerably more successful at avoiding the effects of intra-firm
competition.
Journal: Applied Economics
Pages: 2289-2295
Issue: 19
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500293656
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293656
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Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2289-2295
Template-Type: ReDIF-Article 1.0
Author-Name: Gesine Stephan
Author-X-Name-First: Gesine
Author-X-Name-Last: Stephan
Author-Name: Knut Gerlach
Author-X-Name-First: Knut
Author-X-Name-Last: Gerlach
Title: Wage settlements and wage setting: results from a multi-level model
Abstract:
Which dimensions of wage setting differ across establishments applying
collective contracts and uncovered establishments? The empirical analysis
reported here utilizes German linked employer-employee data for the years
1990, 1995 and 2001 and is restricted to workers without supervisory
functions in larger manufacturing firms. Results show that the expected
wage of an average worker is higher in firms applying collective
contracts, while returns to human capital and the gender wage gap are
reduced. Moreover, during the 1990s these effects became stronger.
Journal: Applied Economics
Pages: 2297-2306
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500366429
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366429
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2297-2306
Template-Type: ReDIF-Article 1.0
Author-Name: Hyeon-Seung Huh
Author-X-Name-First: Hyeon-Seung
Author-X-Name-Last: Huh
Title: A simple test of exogeneity for recursively structured VAR models
Abstract:
The restriction of exogeneity of certain variables in structural VAR
models is rarely tested for consistency with the actual data. The reason
is obvious: such a test requires estimates of the structural parameters.
This paper proposes a solution for models that assume long-run or
contemporaneous recursive structures in identification. We show that in
such cases, the exogeneity restriction can be assessed statistically using
the well-known Granger non-causality test which is conveniently performed
in the reduced-form VAR model. Two empirical examples are offered to
demonstrate the usefulness of this result.
Journal: Applied Economics
Pages: 2307-2313
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500366270
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366270
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Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Chien-An Wang
Author-X-Name-First: Chien-An
Author-X-Name-Last: Wang
Title: The impact of cross-ownership on the reaction of corporate investment and financing constraints: a panel threshold model
Abstract:
This paper studies whether or not investment decisions are financially
constrained in a cross-ownership system of Taiwan. Different from the
financial structure in the USA, subsidiaries in Taiwan are allowed to buy
stocks of the parent companies. Hence, the conventional debt-to-equity
ratio is inappropriate to divide firms into high and low-debt firms.
Instead, a new threshold variable - the adjusted debt-equity ratio (ADE) -
is employed to divide the sample into high-debt firms and low-debt firms.
A panel of 115 Taiwan-listed firms for the period 1991-1997 is used.
Evidence supports the cash flow hypothesis and ADE has a notable
significant influence on the financial constraints.
Journal: Applied Economics
Pages: 2315-2325
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500218786
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218786
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2315-2325
Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Esteve
Author-X-Name-First: Vicente
Author-X-Name-Last: Esteve
Author-Name: Juan Sanchis-Llopis
Author-X-Name-First: Juan
Author-X-Name-Last: Sanchis-Llopis
Title: Estimating the substitutability between private and public consumption: the case of Spain, 1960-2003
Abstract:
This paper examines the relationship between private and public
consumption using Spanish data over the period 1960-2003, using a two-good
permanent-income model. We extend previous analysis addressing the
question of whether this relationship is stable over time, or exhibits a
structural break allowing the instability to occur at an unknown point in
time. Our empirical results indicated the existence of a long-run
relationship between private and public consumption. We also detect a
structural change of regime shift in the cointegration regression around
the time of 1973-74. Finally, the estimated intratemporal and
intertemporal elasticities of substitution between the two types of
expenditure suggest that private and public consumption in Spain are
Edgeworth-Pareto substitutes.
Journal: Applied Economics
Pages: 2327-2334
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500309288
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Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Cavaliere
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Cavaliere
Title: Testing mean reversion in target-zone exchange rates
Abstract:
The aim of the paper is to assess to what extent European Monetary System
(EMS) target zone exchange rates have been characterized by mean reverting
behaviour. To this purpose, a new class of mean reversion tests is
introduced. With respect to standard approaches, the proposed tests -
which are based on the sample excursion of the exchange rate within the
band - have a better ability to detect target-zone mean reverting
dynamics. The empirical analysis of the exchange rates among the main EMS
currencies shows that the degree of mean reversion is much higher than
what has been reported in the literature, both before and after the target
zone widening of 1993. Finally, the proposed tests have a wider range of
applications since they originate a new approach to unit root testing.
Journal: Applied Economics
Pages: 2335-2347
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500359283
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500359283
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2335-2347
Template-Type: ReDIF-Article 1.0
Author-Name: Esa Mangeloja
Author-X-Name-First: Esa
Author-X-Name-Last: Mangeloja
Title: Economic growth and religious production efficiency
Abstract:
Moral institutions, religions and ethics affect the economic development,
as for example, trust and honesty are essential requirements for emerging
economic activity. Religious production efficiency measure is constructed
and used in economic growth regressions for 8 OECD countries. By using
panel estimation methods and additionally time-series estimations for each
country, more information is gained concerning the country specific growth
and religion characteristics. Empirical evidence from the panel data
estimations seems to suggest that religious beliefs attain more relevance
than religious attendance. Religious production efficiency, containing
both belief and activity aspects, was not found statistically significant
with panel data or with individiual 8 OECD countries growth model, except
for Finland. Significant coefficient for Finland can be explained by
referring to Finland's unique religious market properties, as the level of
religious beliefs have historically been unusually high in Finland. On the
other hand, attendance in religious activities has followed the typical
Northern-European decreasing trend. More exact understanding on the links
between these concepts are essentially needed to better model the economic
consequences of cultural, religious and moral variables.
Journal: Applied Economics
Pages: 2349-2359
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500217531
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500217531
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2349-2359
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Rong Chen
Author-X-Name-First: Jong-Rong
Author-X-Name-Last: Chen
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Title: Technological knowledge, spillover and productivity: evidence from Taiwanese firm level panel data
Abstract:
Using a panel data on Taiwanese manufacturing firms from 1990-1997, this
study investigates the relationship among technological knowledge,
spillover and productivity. In addition to R&D stock, we also employ
patent counts to construct the output-side indicators of knowledge and
spillover to explore the relationship between knowledge and productivity.
We find a very significant contribution of R&D, patents and spillover
stock to productivity. In addition, the magnitude of the patent stock
coefficient is substantially larger than that estimated by R&D stock. Our
results imply that innovative activity investment has been very productive
in increasing output for Taiwanese manufacturing firms in the 1990s.
Journal: Applied Economics
Pages: 2361-2371
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500309262
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500309262
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2361-2371
Template-Type: ReDIF-Article 1.0
Author-Name: John Kwoka
Author-X-Name-First: John
Author-X-Name-Last: Kwoka
Title: Electric power distribution: economies of scale, mergers, and restructuring
Abstract:
Electricity distribution is generally viewed as a natural monopoly and
therefore as having the least potential for the kinds of reforms that have
swept the electric power sector in many countries. Mergers among
distribution companies and efforts at retail competition have nonetheless
altered the operation of the distribution stage. This research into US
electric utilities uses a much larger and less selective data base than
previously available to examine the scale properties of distribution with
respect to output, distance, and customer numbers, and for different
functions within distribution. It finds significant economies at low
output levels, holding system size and customer density constant, but the
cost gradient is otherwise modest. It also finds that geographic size and
customer numbers are quite important and that economies are significantly
stronger for the infrastructure or 'wires' business than for the marketing
function performed by distribution utilities. These results lend credence
to efforts at retail competition that separates these functions, but cast
doubt on the benefits of mergers between distribution systems.
Journal: Applied Economics
Pages: 2373-2386
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500309247
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500309247
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2373-2386
Template-Type: ReDIF-Article 1.0
Author-Name: Huimin Chung
Author-X-Name-First: Huimin
Author-X-Name-Last: Chung
Author-Name: Tsung-Wu Ho
Author-X-Name-First: Tsung-Wu
Author-X-Name-Last: Ho
Author-Name: Ling-Ju Wei
Author-X-Name-First: Ling-Ju
Author-X-Name-Last: Wei
Title: The dynamic relationship between the prices of ADRs and their underlying stocks: evidence from the threshold vector error correction model
Abstract:
This paper sets out to estimate the dynamic relationship that exists
between the prices of ADRs and their underlying stocks, in both the short
run and the long run, using a number of recent developments of the
threshold cointegration framework. The empirical results support the
notion of nonlinear mean reversion of the prices of ADRs and their
underlying stocks.
Journal: Applied Economics
Pages: 2387-2394
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500218729
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218729
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2387-2394
Template-Type: ReDIF-Article 1.0
Author-Name: William Stine
Author-X-Name-First: William
Author-X-Name-Last: Stine
Title: Do budget maximizing public officials increase the probability of property reassessment?
Abstract:
County governments in Pennsylvania face non-binding limits on their
property tax rates. These are considered non-binding because they do not
place a limit on tax levies or expenditures. Assuming local public
officials have monopoly power, tax rate limits can be circumvented by
reassessing the property tax base. A two-stage process was hypothesized in
which the probability of reaching tax rate limits first was determined and
the probability of reassessment then was determined. The effect of budget
maximizing government officials at each stage was tested for 66
Pennsylvania counties over the 1970-1995 period. The empirical results
showed that variables associated with budget maximizing behaviour
influenced the choice in each stage. Public expenditure growth increased
the probability of reaching the tax rate limit in the first stage while
reaching the tax rate limit increased the probability of reassessment in
the second stage. The estimates also showed that economic, fiscal and
taste variables were significant determinants of these probabilities.
Journal: Applied Economics
Pages: 2395-2405
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500218646
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218646
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2395-2405
Template-Type: ReDIF-Article 1.0
Author-Name: Nasri Harb
Author-X-Name-First: Nasri
Author-X-Name-Last: Harb
Title: Import demand in heterogeneous panel setting
Abstract:
To study the elasticities of import demand function, a heterogeneous
panel is built with data of 40 countries and using panel unit root tests
(Im et al., 1997) and panel cointegration tests (Pedroni, 2004). The model
is tested with two previously used activity variables: GDP and GDP minus
Export for a performance comparison. To estimate elasticities, use is made
of two modified panel versions of FMOLS and DOLS developed by Pedroni
(1996, 2000, 2001). The tests prove that GDP outperforms GDP minus Exports
as an activity variable in the cointegration context. FMOLS and DOLS give
close results when individual estimates are done. When between-dimension
estimators are used, conflicting results are obtained. Then, the sample is
split into developed and developing countries and it is shown that income
elasticity in developing countries are not different than unity on average
and are higher than in developed countries contradicting previous
literature results.
Journal: Applied Economics
Pages: 2407-2415
Issue: 20
Volume: 37
Year: 2005
X-DOI: 10.1080/000368405002000345550
File-URL: http://www.tandfonline.com/doi/abs/10.1080/000368405002000345550
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Handle: RePEc:taf:applec:v:37:y:2005:i:20:p:2407-2415
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Fingleton
Author-X-Name-First: Bernard
Author-X-Name-Last: Fingleton
Title: Towards applied geographical economics: modelling relative wage rates, incomes and prices for the regions of Great Britain
Abstract:
One of the key issues surrounding geographical economics is whether the
theory can be made operational, so that proper investigations can be made
of the basic theoretical assumptions and practical use can be made of the
model's predictions at a detailed spatial level. In this paper the model
formalized by Fujita et al. (1999) is developed in the context of 36
regions of Great Britain, enabling direct comparisons with observed wage
rate data that are used to calibrate the model. Iceberg transport costs
are in the form of an exponential function and a power function. For the
range of parameters considered, the power function gives a better fit
between model and data, suggesting scale economies in transportation. The
paper shows that, in spite of the assumptions that have to be made, quite
realistic distributions of relative wages, income and prices are
attainable. However, caution is required in the interpretation of these
simulations, which in no way provide proof of New Economic Geography
theory, which clearly has limitations. Nonetheless it is hoped that the
work reported in this paper does help to advance the progress of
geographical economics theory towards empirical verification.
Journal: Applied Economics
Pages: 2417-2428
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500366221
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Template-Type: ReDIF-Article 1.0
Author-Name: Werner Holzl
Author-X-Name-First: Werner
Author-X-Name-Last: Holzl
Title: Tangible and intangible sunk costs and the entry and exit of firms in a small open economy: the case of Austria
Abstract:
The paper provides evidence on the role of sunk costs as mobility
barriers. An empirical study of the Austrian manufacturing industry
explicitly considers sunk costs related to investment in dedicated
intangible assets. The results confirm the relevance of sunk costs as
mobility barriers, their symmetry with respect to entry and exit, and show
that the influence of sunk costs is robust to aggregation.
Journal: Applied Economics
Pages: 2429-2443
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500365850
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500365850
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Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2429-2443
Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Fritsche
Author-X-Name-First: Ulrich
Author-X-Name-Last: Fritsche
Author-Name: Vladimir Kuzin
Author-X-Name-First: Vladimir
Author-X-Name-Last: Kuzin
Title: Declining output volatility in Germany: impulses, propagation, and the role of monetary policy
Abstract:
The decline in output volatility in Germany is analysed. A lower level of
variance in an autoregressive model of output growth can be either due to
a change in the structure of the economy (a change in the propagation
mechanism) or a reduced error term variance (reduced impulses). In Germany
the decline output volatility is due to a decline in the persistence of
the growth process. This is in contrast to the US results, where a break
in the variance seems to dominate the decline in persistence. A change in
the conduct of monetary policy (the establishment of another monetary
policy regime) could be part of an explanation for the change in
propagation. Stochastic simulations with a New Keynesian DSGE model
support the hypothesis.
Journal: Applied Economics
Pages: 2445-2457
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500359317
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500359317
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Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2445-2457
Template-Type: ReDIF-Article 1.0
Author-Name: Zhuo Chen
Author-X-Name-First: Zhuo
Author-X-Name-Last: Chen
Author-Name: Steven Yen
Author-X-Name-First: Steven
Author-X-Name-Last: Yen
Title: On bias correction in the multivariate sample-selection model
Abstract:
Heien and Wessells' two-step estimator for the multivariate
sample-selection model has been used extensively during the past 15 years.
A modified version of it, with slightly different selectivity regressors,
has also appeared in the empirical literature. Both estimators are
unfounded and generally do not correct for the sample selectivity bias as
intended but have continued to gain popularity in empirical applications.
The properties of the modified Heien-Wessells procedure are investigated
in both the bivariate and multivariate contexts, and the conditions under
which this estimator fails to correct for sample selectivity are examined.
The theoretical properties are demonstrated with a simulated random
sample.
Journal: Applied Economics
Pages: 2459-2468
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500366346
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Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2459-2468
Template-Type: ReDIF-Article 1.0
Author-Name: Theis Theisen
Author-X-Name-First: Theis
Author-X-Name-Last: Theisen
Title: Tanzanian formal sector workers' participation in informal production
Abstract:
A theoretical model is developed explaining formal sector workers
participation in the informal sector. A reduced-form informal sector
participation function is derived from a specific utility function, a
specific informal sector production function, and a specific informal
sector earnings function. The participation function can be estimated
consistently, and provides a solution to the problem that informal sector
'wages' in developing countries are hard to observe. A sample of Tanzanian
formal sector workers is used to estimate the participation function. A
majority of Tanzanian formal sector workers participate in informal
production. Participation in informal production is inversely related to
household income, to living in Dar es Salaam, and to being a mother with
small children. Participation is positively related to age, and
multiple-job-holding seems to play a very different role in the transition
from work to retirement in Tanzania compared to industrialized countries.
Journal: Applied Economics
Pages: 2469-2485
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500366197
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366197
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Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2469-2485
Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman
Author-X-Name-First: Adnan
Author-X-Name-Last: Kasman
Author-Name: Saadet Kirbas-Kasman
Author-X-Name-First: Saadet
Author-X-Name-Last: Kirbas-Kasman
Author-Name: Evrim Turgutlu
Author-X-Name-First: Evrim
Author-X-Name-Last: Turgutlu
Title: Nominal and real convergence between the CEE countries and the EU: a fractional cointegration analysis
Abstract:
This paper examines the real and nominal convergence between the Central
and Eastern European countries and the EU, using fractional cointegration
analysis for the period 1980-2003. Fractional cointegration analysis is a
flexible methodology, which allows for more subtle forms of mean
reversion. The tests performed are those of Geweke and Porter-Hudak. The
convergence processes are valid when macroeconomic time series used in the
study are fractionally cointegrated. The results indicate that inflation
and interest rates series of six sample countries are fractionally
cointegrated with those of the EU. Therefore, nominal convergence has been
achieved by some of the transition countries, but the equilibrium errors
display long memory. Results also indicate that industrial outputs of most
countries in the sample are not fractionally cointegrated with that of the
EU. The results further indicate that both nominal and real convergence
have been achieved only for Hungary.
Journal: Applied Economics
Pages: 2487-2500
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500366312
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366312
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Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2487-2500
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Perman
Author-X-Name-First: Roger
Author-X-Name-Last: Perman
Author-Name: Christophe Tavera
Author-X-Name-First: Christophe
Author-X-Name-Last: Tavera
Title: A cross-country analysis of the Okun's Law coefficient convergence in Europe
Abstract:
The paper examines whether or not evidence is consistent with convergence
of the Okun's Law coefficient (OLC) among several alternative groupings of
European economies. A two-step empirical strategy is employed. The first
step obtains rolling regression estimates of the OLC for individual
European countries. The second step examines how the cross-country
variance of the OLC evolves over the decade until 2002 in the selected
country groupings. Evidence is found consistent with convergence of the
OLC among northern European countries, and among countries with
centralized wage bargaining, but an absence of convergence in other
country groups.
Journal: Applied Economics
Pages: 2501-2513
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500366395
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366395
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Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2501-2513
Template-Type: ReDIF-Article 1.0
Author-Name: Ivan Paya
Author-X-Name-First: Ivan
Author-X-Name-Last: Paya
Author-Name: David Peel
Author-X-Name-First: David
Author-X-Name-Last: Peel
Title: The process followed by PPP data. On the properties of linearity tests
Abstract:
Recent research has reported the lack of correct size in stationarity
test for PPP deviations within a linear framework. However, theoretically
well motivated non-linear models, such as the ESTAR, appear to
parsimoniously fit the PPP data and provide an explanation for the PPP
'puzzle'. Employing Monte Carlo experiments the size and power of the
non-linear tests are analysed against a variety of nonstationary
hypotheses. Aslo the ESTAR model is fitted to data from high inflation
economies. The results provide further support for ESTAR specification.
Journal: Applied Economics
Pages: 2515-2522
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500390189
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390189
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Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2515-2522
Template-Type: ReDIF-Article 1.0
Author-Name: Bai Yuanliang
Author-X-Name-First: Bai
Author-X-Name-Last: Yuanliang
Author-Name: Zhang Zongyi
Author-X-Name-First: Zhang
Author-X-Name-Last: Zongyi
Title: Aggregate cigarette demand and regional differences in China
Abstract:
National educational level, final consumption expenditure, average
propensity to cigarette consumption (APCC) and cigarette price are adopted
to research the regional and national aggregate cigarette demand of China.
Under the condition that the effects of anti-smoking education in the
Chinese current educational system are not remarkable, the theoretical
model shows that cigarette demand will increase with the increase of
national educational level. Empirical analysis points out that cigarette
demand increases with the increase of educational level. Estimates also
suggest that cigarette price, consumption expenditure and APCC will affect
cigarette demand significantly, and that there are great differences for
cigarette demand by region.
Journal: Applied Economics
Pages: 2523-2528
Issue: 21
Volume: 37
Year: 2005
X-DOI: 10.1080/00036840500358640
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500358640
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Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2523-2528
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Title: On the evolution of competition: an application of nonlinear tests
Abstract:
A corollary of the Coase Theorem maintains that, where free market
precepts exist, the allocation of property rights would not impact the
level of competition within an industry. Within the Major League Baseball
industry, for example, the theorem would suggest that institutional
arrangements such as free-agency would not impact player distributions
and, therefore, would fail to alter competitive balance. In order to
examine this implication, the present paper investigates the univariate
behaviour of competition balance. In the end, it appears that an increased
labour pool, rather than institutional changes, is responsible for
movements in competitive levels within the industry. Specifically, the
evidence suggests that competitive balance measures are trend-stationary.
However, the trend is nonlinear and is common to Baseball's labour pool,
i.e. the two co-trend.
Journal: Applied Economics
Pages: 1-12
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500218604
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218604
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:1-12
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Title: Skill-biased technological knowledge without scale effects
Abstract:
In the skill-biased technological change literature, the
technological-knowledge bias, which drives wage inequality, is determined
by the market-size channel. Motivated by the literature on scale effects
since Jones (1995a, b), the standard R&D technology is modified so that
wage inequality results similarly from the technological-knowledge bias,
which is instead induced by the price channel. Thus, by solving the
transitional dynamics numerically, it is shown that the recent rise of the
skill premium, which is highlighted by, e.g., Acemoglu (2002a), arises
from the price-channel effect, complemented with a mechanism that can be
called technological-knowledge-absorption effect.
Journal: Applied Economics
Pages: 13-21
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367625
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367625
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:13-21
Template-Type: ReDIF-Article 1.0
Author-Name: Begona Cueto
Author-X-Name-First: Begona
Author-X-Name-Last: Cueto
Author-Name: Javier Mato
Author-X-Name-First: Javier
Author-X-Name-Last: Mato
Title: An analysis of self-employment subsidies with duration models
Abstract:
The determinants of continuity of subsidized self-employment activities
are studied by means of duration models in Asturias (Spain). Variables
related to socio-economic characteristics of the self-employed and to
subsidized businesses are included in the models. Moreover, to consider
the economic situation, the regional unemployment rate has been taken into
account. A general survival analysis is complemented with a competing risk
model that considers two types of exits from self-employment (failure
versus other reasons). The significant variables that explain survival are
age, industry, whether the business is the main source of family income or
not and the unemployment rate.
Journal: Applied Economics
Pages: 23-32
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367542
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367542
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:23-32
Template-Type: ReDIF-Article 1.0
Author-Name: Petko Kalev
Author-X-Name-First: Petko
Author-X-Name-Last: Kalev
Author-Name: Brett Inder
Author-X-Name-First: Brett
Author-X-Name-Last: Inder
Title: The information content of the term structure of interest rates
Abstract:
This paper presents the results of an alternative test of the rational
expectations theory of the term structure of interest rates. Other
researchers have also examined the validity of the expectations hypothesis
of term structure. While there is more often rejection of the expectations
hypothesis, no other theory (data-consistent with the entire yield curve)
provides an empirically adequate explanation of this phenomenon. The study
considers postwar US pure discount (zero coupons) bond yields with various
maturities, from one month to 60 months. Based on the ex post formation of
rational expectations, the expectations error is quantified and the level
of truth of the expectations hypothesis tested, that is, the strength of
the departure of the yield curve from the expectations theory. The results
suggest that a significant amount of information available at no cost to
market agents is not incorporated in forming people's expectations.
Journal: Applied Economics
Pages: 33-45
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500365967
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500365967
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:33-45
Template-Type: ReDIF-Article 1.0
Author-Name: Cesar Rodriguez-Gutierrez
Author-X-Name-First: Cesar
Author-X-Name-Last: Rodriguez-Gutierrez
Title: An explanation of the changes in the proportion of temporary workers in Spain
Abstract:
In this paper a theoretical model is developed to identify the main
determinants of the proportion of temporary workers at firms. The outcomes
show that the proportion of temporary workers has a counter-cyclical
behaviour: it grows during the slump period up to 1995 and falls during
the subsequent recovery. However, given the effect of the general economic
cycle, firms that raise their sales or improve their market dynamism index
tend to increase their proportion of temporary workers. This proportion
also rises when the average labour cost decreases, firm size increases,
and the knowledge capital stock diminishes.
Journal: Applied Economics
Pages: 47-62
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500218612
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218612
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:47-62
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Are bilateral real exchange rates stationary? Evidence from Lagrange multiplier unit root tests for India
Abstract:
The paper examines the stationarity of India's real exchange rate
vis-a-vis 16 of its major trading partner countries for the period
1960-2000. Application of the conventional ADF unit root test, the
Lagrange multiplier (LM) unit root test with one structural break, and the
LM unit root test with two structural breaks provides evidence that
India's exchange rate vis-a-vis 15 out of 16 countries is stationary,
implying support for purchasing power parity.
Journal: Applied Economics
Pages: 63-70
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500365983
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500365983
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:63-70
Template-Type: ReDIF-Article 1.0
Author-Name: Myung Hoon Yi
Author-X-Name-First: Myung Hoon
Author-X-Name-Last: Yi
Author-Name: Changkyu Choi
Author-X-Name-First: Changkyu
Author-X-Name-Last: Choi
Title: A GMM test of the precautionary saving hypothesis with nonexpected-utility preferences
Abstract:
Using GMM estimation with the US data from January 1967 to April 2003,
the precautionary saving hypothesis is tested using time-varying
consumption uncertainty and a nonexpected-utility model of intertemporal
optimal consumption. Overidentifying restrictions of the model
specification are also tested for both expected and nonexpected utility
using Hansen's J-statistics. It was found that the precautionary saving
hypothesis did not hold under expected-utility preferences but did hold
partly under nonexpected-utility preferences.
Journal: Applied Economics
Pages: 71-78
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367492
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367492
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:71-78
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Di Pietro
Author-X-Name-First: Giorgio Di
Author-X-Name-Last: Pietro
Author-Name: Peter Urwin
Author-X-Name-First: Peter
Author-X-Name-Last: Urwin
Title: Education and skills mismatch in the Italian graduate labour market
Abstract:
This paper focuses on education and skills mismatch among Italian
graduates. Indicators for over- and under-utilization of education and
under-utilization of skills are included as explanatory factors in a wage
equation, testing theories that could explain the effect of over-schooling
on wages. We find little evidence to support assignment theory and also
identify a relatively weak wage effect arising from educational mismatch
associated with employers', as opposed to employees', perceptions of the
job requirements. Our interpretation is that some employers have
re-categorized jobs as requiring a degree, when they were previously
filled by non-graduates, and many have not altered pay scales accordingly.
Journal: Applied Economics
Pages: 79-93
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500215303
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215303
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:79-93
Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Sonedda
Author-X-Name-First: Daniela
Author-X-Name-Last: Sonedda
Title: A structural VAR approach on labour taxation policies
Abstract:
This paper presents a Structural VAR analysis on the employment and
output effects of labour tax policies in six European countries for the
period 1974-1997. By considering impulse response functions, it turns out
that, on average, a shock to the total personal income tax revenues is
positively correlated to employment, whereas there is mixed evidence on
the output effect. Moreover, the quantitative impact of these effects,
especially those related to the output, appears to be quite small.
However, by introducing explicitly four labour tax parameters (namely the
marginal and average tax rates for the personal income tax and the payroll
tax), it turns out that these effects are not negligible after all: for
some countries it is possible to conceive labour taxes as policy
instruments favouring more employment and a better economic performance.
However, the empirical support on the sign of the output and employment
effects is mixed, suggesting that the same domestic fiscal policy does not
produce the same impact in all the European countries.
Journal: Applied Economics
Pages: 95-114
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500166415
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500166415
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:95-114
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Christopher Moore
Author-X-Name-First: Simon Christopher
Author-X-Name-Last: Moore
Title: The value of reducing fear: an analysis using the European Social Survey
Abstract:
This paper calculates the shadow price of fear of crime using the
European Social Survey. A multiple regression model is specified with
happiness as the outcome variable and fear of crime, total household
income and control variables as independent variables. Both income and
fear of crime are significantly associated with happiness and the total
household income required to compensate an average household for an
increase in fear of crime is estimated.
Journal: Applied Economics
Pages: 115-117
Issue: 1
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368094
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368094
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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:115-117
Template-Type: ReDIF-Article 1.0
Author-Name: David Demery
Author-X-Name-First: David
Author-X-Name-Last: Demery
Author-Name: Nigel Duck
Author-X-Name-First: Nigel
Author-X-Name-Last: Duck
Title: Demographic change and the UK savings rate
Abstract:
Microeconomic data are used to explore the effects of a changing
age-structure on the UK's aggregate personal savings rate. The findings
suggest that changes to the population's age structure have had
detectable, sustained, but, relative to the yearly changes observed in the
savings rate over the previous century, modest effects on aggregate
personal sector savings. It is estimated that the projected changes to the
UK's age structure over the next 40 years are likely to raise the UK's
savings rate but by no more than two percentage points. No basis is found
for the view that the aggregate savings rate will decline as a result of
the anticipated ageing of the UK population.
Journal: Applied Economics
Pages: 119-136
Issue: 2
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500390361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390361
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Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:119-136
Template-Type: ReDIF-Article 1.0
Author-Name: Miroslav Verbic
Author-X-Name-First: Miroslav
Author-X-Name-Last: Verbic
Title: Discussing the parameters of preservation of perishable goods in a cold logistic chain model
Abstract:
The paper discusses the parameters of preservation of perishable goods in
cold logistic chains. The key parameters are the intensity of
deterioration of goods, the conservation effect of perishable goods and
the delay of activation of the conservation effect. The values of these
parameters determine the quantity of the product being deteriorated in the
logistic chain and the extent to which the deterioration can be
alleviated. Econometric estimation thus presents the quantity effects of
preservation procedures, whereas the financial effects can be derived
using the proper price categories in the calculation of the net present
value or the annuity stream. In this way one can determine whether the
implementation of preservation procedures is more rational than the
purchase of an attainable insurance policy.
Journal: Applied Economics
Pages: 137-147
Issue: 2
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367609
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367609
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Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:137-147
Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Mishra
Author-X-Name-First: Ashok
Author-X-Name-Last: Mishra
Author-Name: Barry Goodwin
Author-X-Name-First: Barry
Author-X-Name-Last: Goodwin
Title: Revenue insurance purchase decisions of farmers
Abstract:
The objective of this study is to evaluate farm, household, and financial
characteristics of cash grain farmers' decisions of whether to purchase
revenue insurance. Using farm-level data these characteristics were
identified by estimating a logit model of revenue insurance purchase
decisions by farm operators. Results indicate that farm operators with the
ability to self-insure through accumulation of sufficient wealth reserves
measured in terms of the ratio of debts-to-assets, operators with off-farm
income, and participation in production and marketing contracts, are more
likely to pursue these strategies as a substitute for federal revenue
insurance programmes. Further, study finds that older and wealthy cash
grain farmers are less likely to buy revenue insurance.
Journal: Applied Economics
Pages: 149-159
Issue: 2
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367724
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367724
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Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:149-159
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Yuan Chen
Author-X-Name-First: Ming-Yuan
Author-X-Name-Last: Chen
Title: Managerial ownership and firm performance: an analysis using switching simultaneous-equations models
Abstract:
This paper uses a switching simultaneous-equations model to examine the
relation between managerial ownership and firm performance. The model
includes a multinomial logit for the firm's choice among three regimes of
large-block ownership, which can be argued as the choice among different
degrees of controlling-minority structures, and three
simultaneous-equations systems of managerial ownership and performance for
each ownership regime. The paper argues that the choice of ownership
regimes is the firm's endogenous decision as a reflection of the
firm-specific organizational and transactional attributes, and hence the
impact of managerial ownership on performance varies across firms
belonging to different regimes. Empirical results show that family
involvement in the management and significant related-party transactions
are important factors to determine the firm's choice of ownership regimes.
Evidence also indicates that the patterns of the relation between
managerial ownership and firm performance, in the sense that the
inflection points for the impact of managerial ownership turning from
positive to negative, are markedly different across ownership regimes.
Interpretations consistent with the endogeneity of managerial ownership
are provided.
Journal: Applied Economics
Pages: 161-181
Issue: 2
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368136
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368136
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Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:161-181
Template-Type: ReDIF-Article 1.0
Author-Name: Camilo Sarmiento
Author-X-Name-First: Camilo
Author-X-Name-Last: Sarmiento
Title: Transfer function estimation of trade leakages generated by court rulings in the Hawai'i longline fishery
Abstract:
Under the Endangered Species Act (ESA) mandate to protect turtle stocks
from incidental contact, the Emergency Interim Rule of August 2000
prohibited Hawai'i permit holders from targeting swordfish in the area
from the Equator to 28°N and between 173°E and 137°W. As a
result of this interim rule, landings of swordfish in Hawai'i decreased
93% in 2001. This paper implements a transfer function analysis to measure
trade leakages generated by this ruling. This case study for the Hawai'i
fishery measures the limitations of the ESA when enforcement has
jurisdiction on some producers, but not others.
Journal: Applied Economics
Pages: 183-190
Issue: 2
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368078
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368078
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Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:183-190
Template-Type: ReDIF-Article 1.0
Author-Name: Abdullahi Abdulkadri
Author-X-Name-First: Abdullahi
Author-X-Name-Last: Abdulkadri
Author-Name: Michael Langemeier
Author-X-Name-First: Michael
Author-X-Name-Last: Langemeier
Author-Name: Allen Featherstone
Author-X-Name-First: Allen
Author-X-Name-Last: Featherstone
Title: Estimating economies of scope and scale under price risk and risk aversion
Abstract:
This study uses duality to examine the effects of excluding output price
risk and risk aversion on cost structures. Using data for Kansas wheat and
beef-cow operations, a dual risk model was used to determine multi-product
and product-specific scale economies, and economies of scope. Estimates
for these measures were compared with those obtained from a deterministic
model. The results show that product-specific scale economies are
over-estimated and economies of scope and multi-product scale economies
are under-estimated for the deterministic model compared to the risk
model.
Journal: Applied Economics
Pages: 191-201
Issue: 2
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367716
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367716
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Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:191-201
Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Dufrenot
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufrenot
Author-Name: Laurent Mathieu
Author-X-Name-First: Laurent
Author-X-Name-Last: Mathieu
Author-Name: Valerie Mignon
Author-X-Name-First: Valerie
Author-X-Name-Last: Mignon
Author-Name: Anne Peguin-Feissolle
Author-X-Name-First: Anne
Author-X-Name-Last: Peguin-Feissolle
Title: Persistent misalignments of the European exchange rates: some evidence from non-linear cointegration
Abstract:
The asymmetric and persistent adjustment of the European real exchange
rates is investigated using the framework of non-linear cointegration. The
episodes of slow mean-reversion dynamics over the period from 1979 to 1999
are explained. A test of unit root against STAR cointegration is proposed
and some complete estimations and stochastic simulations of ESTAR models
are presented. The presence of effective non-linear adjustment during the
moving of the currencies to their long-run fundamental equilibrium
exchange rate value is discussed.
Journal: Applied Economics
Pages: 203-229
Issue: 2
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500390262
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390262
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Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:203-229
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Sussmuth
Author-X-Name-First: Bernd
Author-X-Name-Last: Sussmuth
Title: Beauty in the classroom: are German students less blinded? Putative pedagogical productivity due to professors' pulchritude: peculiar or pervasive?
Abstract:
Given that instructional student ratings measure differences in
pedagogical productivity, this study examines whether perceived
attractiveness of German university teachers impact on these differences.
Apart from some refinements and adjustments to idiosyncracies of the
German system of higher learning, the quantitative analysis widely follows
the strategy of the seminal work by Hamermesh and Parker (2005), based on
US data. In comparison to findings for the USA, perceived attractiveness
of teachers is found to have, if at all, only a weakly significant and
quantitatively less important impact on the evaluation outcomes.
Journal: Applied Economics
Pages: 231-238
Issue: 2
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500390296
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390296
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Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:231-238
Template-Type: ReDIF-Article 1.0
Author-Name: Constantino Cronemberger Mendes
Author-X-Name-First: Constantino Cronemberger
Author-X-Name-Last: Mendes
Author-Name: Maria da Conceicao Sampaio de Sousa
Author-X-Name-First: Maria da Conceicao Sampaio
Author-X-Name-Last: de Sousa
Title: Demand for locally provided public services within the median voter's framework: the case of the Brazilian municipalities
Abstract:
In this paper we estimated the demand for local public spending for the
Brazilian municipalities within a median voter's framework. The rationale
for applying that framework came from the fact that in federal systems
voters' preferences are more likely to be reflected at the local level as
the consumers of public services have a better knowledge of the benefits
and costs of the local public expenditures. Results obtained are
consistent with the theoretical background thus suggesting that this
hypothesis might be useful to describe the demand for local public goods
in Brazil. In particular, the use of quantile regression permitted us to
investigate the impacts of the conditioning variables on local public
expenses across different expenditures classes thus allowing for
heterogeneity across municipalities. Our results also suggest that the
impact of the city size on the quality of club goods shows crowding
effects as γ is between zero and one. However, in the estimated
models, marginal congestion slightly decreases with expenditure. This is a
rather surprising result as one is tempted to conclude that the congestion
effect should be higher on big cities. Yet, a more careful look shows the
drawbacks of such an interpretation. The indivisibilities preclude the
provision of certain services in small towns, concentrating their
provision on larger cities. Hence, the higher expenditures of those big
cities reflect not only a crowding cost but also the fact that these towns
offer a wide range of services when compared to the small ones.
Journal: Applied Economics
Pages: 239-251
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500215378
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500215378
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:239-251
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Richardson
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Richardson
Author-Name: Stuart Peacock
Author-X-Name-First: Stuart
Author-X-Name-Last: Peacock
Author-Name: Duncan Mortimer
Author-X-Name-First: Duncan
Author-X-Name-Last: Mortimer
Title: Does an increase in the doctor supply reduce medical fees? An econometric analysis of medical fees across Australia
Abstract:
One of the clearest predictions of economic theory is that an autonomous
increase in supply will depress the price which equilibriates supply and
demand. However, US evidence with respect to medical fees has been
perverse: higher fees have been observed in areas with more doctors even
after standardizing for other relevant variables. This has resulted in two
broad responses. Some have invoked the (once) controversial theory of
supplier-induced demand to account for the anomaly. Others have suggested
ingenious ways of explaining the results within the orthodox framework in
which supply and demand are independent. There has been almost no analysis
of price formulation in the Australian medical market. It has been
generally assumed that the usual supply-demand relationships apply in the
Australian context, and that perversity in the US is attributable to
US-specific market characteristics. The present article examines the
setting of GP fees in the Australian market using 1995 cross-section data
from statistical sub-divisions. The implications of the results for
workforce planning and for the analysis of consumer benefits are
discussed.
Journal: Applied Economics
Pages: 253-266
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500218513
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218513
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:253-266
Template-Type: ReDIF-Article 1.0
Author-Name: John Goddard
Author-X-Name-First: John
Author-X-Name-Last: Goddard
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Author-Name: John Wilson
Author-X-Name-First: John
Author-X-Name-Last: Wilson
Title: Do firm sizes and profit rates converge? Evidence on Gibrat's Law and the persistence of profits in the long run
Abstract:
Three panel unit root tests are applied to a 31-year firm size, growth
and profit rate data set for 96 large, quoted UK firms. All tests reject
the unit root null for log size if the Augmented Dickey Fuller
autoregressions exclude a linear time trend. If a linear trend is
included, the results are more ambiguous and appear to differ
systematically between tests. The view that firm growth is either random
or near-random does not receive unequivocal support in all tests. There is
however strong and consistent evidence of mean-reversion in profit rates.
Journal: Applied Economics
Pages: 267-278
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367955
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367955
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:267-278
Template-Type: ReDIF-Article 1.0
Author-Name: Bryan Boulier
Author-X-Name-First: Bryan
Author-X-Name-Last: Boulier
Author-Name: H. O. Stekler
Author-X-Name-First: H. O.
Author-X-Name-Last: Stekler
Author-Name: Sarah Amundson
Author-X-Name-First: Sarah
Author-X-Name-Last: Amundson
Title: Testing the efficiency of the National Football League betting market
Abstract:
This study presents three tests of efficiency of the NFL betting market
for the years 1994-2000. First, it tests for weak-form informational
efficiency of the betting market. Then it examines whether the market
incorporates objective information such as power scores and stadium
characteristics that might be useful for predicting game outcomes.
Finally, it determines whether alternative betting strategies would have
yielded a profit. Although there is some indication that differences in
the playing surfaces of home and visiting teams were not fully reflected
in the betting lines, it is found that there is no conclusive evidence to
suggest that the market was inefficient over the period examined.
Journal: Applied Economics
Pages: 279-284
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368904
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368904
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:279-284
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Title: Government revenue and government expenditure nexus: evidence from developing countries
Abstract:
The relationship between government revenue and government expenditure
has attracted a lot of interest given its policy relevance, particularly
with respect to budget deficits. The goal of this paper is to investigate
evidence for causality between government revenue and government
expenditure within a multivariate framework by modelling them together
with gross domestic product for 12 developing countries. Our application
of the Toda and Yamamoto (1995) test for Granger causality reveals support
for the tax-and-spend hypothesis for Mauritius, El Salvador, Haiti, Chile
and Venezuela. For Haiti, there is evidence for the spend-and-tax
hypothesis, while for Peru, South Africa, Guatemala, Uruguay and Ecuador
there is evidence of neutrality.
Journal: Applied Economics
Pages: 285-291
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500369209
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369209
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:285-291
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Moore
Author-X-Name-First: Simon
Author-X-Name-Last: Moore
Author-Name: Jonathan Shepherd
Author-X-Name-First: Jonathan
Author-X-Name-Last: Shepherd
Title: The cost of fear: shadow pricing the intangible costs of crime
Abstract:
This study employs a cross sectional crime survey of UK residents to
estimate the shadow price of victimization with respect to fear of crime.
Particular attention is paid to the relationship between household income
and fear of crime and potential mediating variables such as neighbourhood
deprivation and neighbourhood crime rates. A robust relationship between
fear of crime and income is demonstrated having controlled for deprivation
and crime rate. Further analyses suggest that a substantial increase in
household income is required to offset the threat of physical violence.
However, actual victimization (burglary, physical violence and car crime)
do not significantly influence fear of crime.
Journal: Applied Economics
Pages: 293-300
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367781
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367781
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:293-300
Template-Type: ReDIF-Article 1.0
Author-Name: Kajal Mukhopadhyay
Author-X-Name-First: Kajal
Author-X-Name-Last: Mukhopadhyay
Author-Name: Lawrence Marsh
Author-X-Name-First: Lawrence
Author-X-Name-Last: Marsh
Title: An approach to nonparametric smoothing techniques for regressions with discrete data
Abstract:
This paper proposes nonparametric regression estimation techniques for
small samples in situations where the dependent variable involves count
data. Often the form of a kernel will not matter asymptotically. However,
in small samples the kernel structure may play a more important role in
approximating the small sample distribution especially for discrete random
variables. In particular for count data we introduce a Poisson kernel
regression estimator and a binomial kernel regression estimator. These new
regression methods are applied to coal mine wildcat strike data. We use
cross validation to evaluate out-of-sample performance.
Journal: Applied Economics
Pages: 301-305
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368581
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368581
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:301-305
Template-Type: ReDIF-Article 1.0
Author-Name: Kian Teng Kwek
Author-X-Name-First: Kian Teng
Author-X-Name-Last: Kwek
Author-Name: Kuan Nee Koay
Author-X-Name-First: Kuan Nee
Author-X-Name-Last: Koay
Title: Exchange rate volatility and volatility asymmetries: an application to finding a natural dollar currency
Abstract:
Based on six daily spot nominal exchange rate returns denominated in the
US dollar, viz-a-viz UK Pound, Japanese Yen, Swiss Franc, Canadian dollar,
Australian dollar and Singapore dollar, this paper tries to find a natural
Dollar currency by comparing the linear/nonlinear dynamics in the
conditional variance of these bilateral exchange rate returns (time
varying volatility vs. asymmetries). The characteristics of the
unconditional distribution of the FX returns justified the use of the
GARCH class of models of conditional volatility. Strong time varying
symmetric effects are apparent in all the series examined, especially in
the Australian dollar. Further asymmetric effects in unexpected
appreciations and depreciations of currencies are examined based on the
GJR model, the ST GARCH model and the ANST-GARCH model (which encompasses
several asymmetric models). The estimates of asymmetric models show weak
evidence of asymmetries in most of the currencies, except in the Japanese
Yen and UK Pound. Further findings show that the Japanese Yen is a
non-natural Dollar country. However, there may possibly exist some mild
deterministic asymmetric effect in the UK Pound. Based on the symmetric
GARCH model, a trader/investor may consider Australian dollar as the
relatively most 'likable' currency, i.e. relatively the least volatile
currency and relatively the most synchronized with the US dollar.
Journal: Applied Economics
Pages: 307-323
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368672
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368672
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:307-323
Template-Type: ReDIF-Article 1.0
Author-Name: Sara Lemos
Author-X-Name-First: Sara
Author-X-Name-Last: Lemos
Title: Anticipated effects of the minimum wage on prices
Abstract:
There is little empirical evidence on the effect of minimum wage
increases on prices, particularly for developing countries. This paper
provides estimates of this effect using monthly Brazilian household and
firm data over 18 years. As minimum wage increases in Brazil sare large
and frequent, they have a potentially important impact on aggregate
prices. Rational agents, in anticipation of such price effects, may take
minimum wage increases as a signal for future price and wage bargains. We
find that the minimum wage raises overall prices not only on the month of
the increase, but also in the two months prior to the change as well as
after the change.
Journal: Applied Economics
Pages: 325-337
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368722
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368722
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:325-337
Template-Type: ReDIF-Article 1.0
Author-Name: Shujie Yao
Author-X-Name-First: Shujie
Author-X-Name-Last: Yao
Title: On economic growth, FDI and exports in China
Abstract:
China has achieved high economic growth for a prolonged period of time.
Academic researchers have tried alternative explanations for this
miraculous growth. This study focuses on the effect of exports and foreign
direct investments (FDI) on economic performance, using a large panel data
set encompassing 28 Chinese provinces over the period 1978-2000. Adopting
Pedroni's panel unit root test and Arellano and Bond's dynamic panel data
estimating technique, it is found that both exports and FDI have a strong
and positive effect on economic growth. The results suggest that two
development policies adopted in China are useful for other developing and
transitional economies: export promotion and adoption of world technology
and business practices.
Journal: Applied Economics
Pages: 339-351
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368730
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368730
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:339-351
Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Aquino
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Aquino
Title: A variance equality test of the ICAPM on Philippine stocks: post-Asian financial crisis period
Abstract:
The study examines whether Fama's discrete version of Merton's
intertemporal CAPM (ICAPM) can explain the negative market risk premium
and the cross-sectional variability of Philippine stock returns after the
onset of the Asian financial crisis in July 1997. The change in foreign
exchange rate, in addition to the change in market risk premium, is used
as a state variable of hedging concern to investors. The relationship of
Fama's multifactor minimum-variance (MMV) portfolio to the Markowitz
minimum-variance (MV) portfolio is characterized in terms of the equality
of the return variances for the same expected return. A test due to Basak
et al. (2002) is then used to verify the equality of the return variance
of a derived tangency portfolio along the MMV frontier to an MV portfolio
with the same sample mean return. The results do not reject the ICAPM
during the period covered by the study. Thus, the model provides a
plausible explanation both for the cross-sectional variability of stock
returns and the negative market risk premium within the framework of
mean-variance optimizing investors.
Journal: Applied Economics
Pages: 353-362
Issue: 3
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500368854
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500368854
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Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:353-362
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Blunk
Author-X-Name-First: Scott
Author-X-Name-Last: Blunk
Author-Name: David Clark
Author-X-Name-First: David
Author-X-Name-Last: Clark
Author-Name: James McGibany
Author-X-Name-First: James
Author-X-Name-Last: McGibany
Title: Evaluating the long-run impacts of the 9/11 terrorist attacks on US domestic airline travel
Abstract:
Although the US airline industry began 2001 with 24 consecutive
profitable quarters, including net profits in 2000 totaling $7.9 billion,
the impact of the 9/11 event on the industry was substantial. Whereas the
recession that began in early 2001 signaled the end of profitability, the
9/11 terrorist attacks pushed the industry into financial crisis after air
travel dropped 20% over the September-December 2001 period compared to the
same period in 2000. Given the decline in domestic air travel, an
important question is whether the detrimental impact of the attacks was
temporary or permanent. That is, did airline travel return to the trend
that existed prior to the terrorist attacks? There are theoretical reasons
to the believe that it would not. Economists have long viewed travel-mode
choices as the outcome of a comparison of opportunity costs and benefits.
Thus, anything that permanently raises the opportunity cost of travel,
holding benefits constant, should reduce the level of travel volume. To
determine whether air travel was permanently reduced, we use econometric
and time-series forecasting models to generate a counter-factual forecast
of air travel volume in the absence of the terrorist attacks. These
dynamic forecasts are compared to actual air travel levels to determine
the impact of the terrorist attacks. The findings suggest that domestic
air travel did not return to the levels that would have existed in the
absence of the attack.
Journal: Applied Economics
Pages: 363-370
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367930
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367930
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:363-370
Template-Type: ReDIF-Article 1.0
Author-Name: Neil Powe
Author-X-Name-First: Neil
Author-X-Name-Last: Powe
Author-Name: Kenneth Willis
Author-X-Name-First: Kenneth
Author-X-Name-Last: Willis
Author-Name: Guy Garrod
Author-X-Name-First: Guy
Author-X-Name-Last: Garrod
Title: Difficulties in valuing street light improvement: trust, surprise and bound effects
Abstract:
Previous empirical research has demonstrated an internal inconsistency
that may occur in response strategies between the first and second
valuations made to closed-ended contingent valuation questions. One
possible explanation for this bound effect is the surprise of being asked
the second valuation question, which may be enhanced where there is a lack
of trust. This paper considers the use of closed-ended contingent
valuation to estimate non-market benefits for an improved street lighting
scheme where there is a lack of trust in the agency responsible for
provision. The results provide confirmation that surprise is an important
determinant of bound effects; however, efforts to reduce such bias using a
prior statement of the bid range were found to be ineffective in
increasing trust and reducing surprise. Given the importance of this area
of research, directions for future research are considered.
Journal: Applied Economics
Pages: 371-381
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500369274
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369274
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:371-381
Template-Type: ReDIF-Article 1.0
Author-Name: S. Gaudin
Author-X-Name-First: S.
Author-X-Name-Last: Gaudin
Title: Effect of price information on residential water demand
Abstract:
Microeconomic theory predicts that people decrease consumption when price
increases, the magnitude of the effect depending on price elasticity. The
law of demand, however, implicitly assumes that consumers know prices, an
assumption that is not always satisfied in markets with ex post billing.
When prices are not transparent, elasticity estimates are potentially
lower than their full information potential. Evidence of low price
elasticity abounds in residential water demand studies, limiting the
effectiveness and desirability of using price signals as a conservation
tool. It is hypothesized that resident's sluggish response to price is
partly due to the absence of price information on water bills. Differences
in the informational content of bills are documented for the first time on
the basis of sample bills collected from 383 utilities across the USA. A
standard aggregate water demand model is augmented with qualitative
variables describing differences in billing information, allowing such
variables to affect the intensity with which consumers respond to price
signals. No evidence is found that non-price information items affect
price elasticity but there is a statistically significant effect in the
case of price-related information; in our sample, price elasticity
increases by 30% or more when price information is given on the bill.
Journal: Applied Economics
Pages: 383-393
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397499
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397499
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:383-393
Template-Type: ReDIF-Article 1.0
Author-Name: Jaesun Noh
Author-X-Name-First: Jaesun
Author-X-Name-Last: Noh
Author-Name: Tae-Hwan Kim
Author-X-Name-First: Tae-Hwan
Author-X-Name-Last: Kim
Title: Forecasting volatility of futures market: the S&P 500 and FTSE 100 futures using high frequency returns and implied volatility
Abstract:
We show that historical volatility from high frequency returns
outperforms implied volatility when standardized returns by historical
volatility tends to be normally distributed. For the FTSE 100 futures, we
find that historical volatility using high frequency returns outperforms
implied volatility in forecasting future volatility. However, we find that
implied volatility outperforms historical volatility in forecasting future
volatility for the S&P 500 futures. The results also indicate that
historical volatility using high frequency returns could be an unbiased
forecast for the FTSE 100 futures.
Journal: Applied Economics
Pages: 395-413
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500391229
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391229
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:395-413
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Manuchehr Irandoust
Author-X-Name-First: Manuchehr
Author-X-Name-Last: Irandoust
Title: The response of industry employment to exchange rate shocks: evidence from panel cointegration
Abstract:
This study investigates the long-run relationship between employment and
exchange rate shocks at the industry level for France. Using panel unit
roots and panel cointegration analysis, it is found that the French
industries are quite sensitive to exchange rate changes. The estimated
long-run elasticities reveal that exchange rates do influence industry
employment in the expected way, that is, real appreciations are associated
with decline in manufacturing for all industries in the sample.
Journal: Applied Economics
Pages: 415-421
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392243
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392243
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:415-421
Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Henriquez Hofter
Author-X-Name-First: Ricardo Henriquez
Author-X-Name-Last: Hofter
Title: Private health insurance and utilization of health services in Chile
Abstract:
This paper analyses the choice of private health insurance in Chile and
how this relates to the utilization of health services. The results show
the importance of some demographics on the insurance decision,
particularly age, gender and marital status. Socio-economic factors such
as education, income, employment status and zone of residence, all
influence the probability of purchasing private insurance. The relevance
of these determinants is confirmed using a simulation analysis with four
representative decision-makers. This simulation also provides evidence of
a positive selection into private insurance, although this would be driven
by the different criteria used to set premiums under private and public
insurance schemes. The potential linkage between utilization of health
services and private health insurance is examined using a simultaneous
two-equation framework. Two measures of utilization are estimated:
outpatient health services, and length of stay in hospital. A number of
explanatory variables, selected on the basis of previous findings, were
used to estimate these two dependent variables, and self-assessed health
status and long-term activity limitations emerge as important factors in
explaining utilization. Private health insurance cover positively affects
only one of the two measures of utilization: outpatient health services.
This provides evidence of the moral hazard effect pointed out earlier by
Arrow (1963).
Journal: Applied Economics
Pages: 423-439
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392797
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:423-439
Template-Type: ReDIF-Article 1.0
Author-Name: Ayfer Karayel
Author-X-Name-First: Ayfer
Author-X-Name-Last: Karayel
Title: The intragenerationally redistributive effects of the retirement insurance scheme in Turkey before and after the 1999 reform
Abstract:
The paper analyses the intragenerational redistribution generated by the
retirement insurance scheme in Turkey before and after the 1999 reform.
Previous research shows that when a pension scheme's contribution and
benefit schedules are proportional, the existence of an intergenerational
redistribution is a precondition for the existence of an intragenerational
redistribution, but that, otherwise, redistribution within a generation is
possible without intergenerational redistribution. The main finding of
this work is that the existence of the intergenerational redistribution is
still a precondition for the old pension scheme despite its
disproportional benefit schedule. Under the assumptions used, both of the
schemes redistribute from high-wage earners to low-wage earners among
women, but redistribute differently among men. Among men, the old scheme
generates indeterminable transfers, although the new scheme redistributes
from low-wage earners to high wage-earners. The analysis takes into
account a hypothetical distribution of wages.
Journal: Applied Economics
Pages: 441-448
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500393001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500393001
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:441-448
Template-Type: ReDIF-Article 1.0
Author-Name: Ho-Chuan Huang
Author-X-Name-First: Ho-Chuan
Author-X-Name-Last: Huang
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Title: Time-varying discrete monetary policy reaction functions
Abstract:
A novel dynamic ordered probit model with time-varying parameters is
proposed to estimate a monetary policy reaction function with
narrative-based monetary indicators. The estimation and inference are
carried out using the Bayesian simulation-based approach. Empirically,
these are the following findings. First, there is strong evidence in
support that the Central Bank in Taiwan responds counter-cyclically to
inflation but weaker, if any, evidence to economic growth. Secondly, the
persistence and consistence in policy-making of the monetary authority is
confirmed by the significance of the positive autoregressive coefficient.
Although not all, the estimates of the TVP-DOP model provide, at least,
partial support of time-varying parameters. Finally, the results indicate
that studies of the discrete monetary policy reaction functions without
explicitly considering the possible dynamics inherent in the time series
data and time-variations in model parameters may be inappropriate, if not
incorrect.
Journal: Applied Economics
Pages: 449-464
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500395386
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500395386
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:449-464
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Crespo Cuaresma
Author-X-Name-First: Jesus Crespo
Author-X-Name-Last: Cuaresma
Author-Name: Adelina Gschwandtner
Author-X-Name-First: Adelina
Author-X-Name-Last: Gschwandtner
Title: The competitive environment hypothesis revisited: non-linearity, nonstationarity and profit persistence
Abstract:
Much empirical literature dealing with the competitive environment
hypothesis tends to find nonstationary behaviour and very high persistence
in time series of company profits. Profit time series is modelled using a
simple threshold autoregressive model that allows for nonstationary
behaviour over subsamples. Using a new dataset consisting of profits for
more than 150 US companies over a time period of 50 years, statistical
evidence is presented that the high persistence observed in profits when
using linear autoregressive models is often due to the misspecification of
the data generating process.
Journal: Applied Economics
Pages: 465-472
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500390312
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500390312
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:465-472
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Title: Education policy reform, local average treatment effect and returns to schooling from instrumental variables in the Philippines
Abstract:
A nationally representative dataset from the Philippines is used to
derive returns to schooling estimates from instrumental variables,
utilizing a supply-side intervention in the education market capable of
generating significant changes in schooling. These estimates apply to a
subgroup of, mainly, liquidity constrained individuals, in the spirit of
the Local Average Treatment Effect (LATE) literature. Returns to schooling
estimates which apply to a subgroup of individuals affected by policy
intervention may be more interesting from a policy perspective than the
return to the 'average' individual. The findings are consistent with other
recent evidence suggesting that the causal effect of education, at least
for certain subgroups of individuals, is as big or bigger than what is
suggested by OLS estimates.
Journal: Applied Economics
Pages: 473-481
Issue: 4
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367864
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367864
File-Format: text/html
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Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:473-481
Template-Type: ReDIF-Article 1.0
Author-Name: David Walker
Author-X-Name-First: David
Author-X-Name-Last: Walker
Title: Predicting presidential election results
Abstract:
The 2004 US presidential election proved again how difficult it is to
predict vote shares on the basis of polls. Midday media exit polls
suggested that Senator Kerry would become the 44th President. Political
scientists and econometricians, led by Ray Fair, have promulgated
theoretical arguments and empirical results to predict US presidential
elections, using macro-economic data and political factors. Respecifying
Fair's war variable to include Korea and Vietnam and removing serial
correlation improves his election forecasting without public opinion poll
variables. This generalized Fair model predicts President Bush's two-party
vote share would be 52.3 percent, well below predictions by Fair and
prestigious political scientists.
Journal: Applied Economics
Pages: 483-490
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500391385
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391385
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:483-490
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent
Author-X-Name-First: Robert
Author-X-Name-Last: Brent
Title: Does female education prevent the spread of HIV-AIDS in Sub-Saharan Africa?
Abstract:
Cross-section estimates of 31 countries for the year 2000 are used to
examine the effect of the level of female education, and the gap between
male and female levels, on the prevalence of HIV/AIDS in Sub-Saharan
Africa. Many standard types of education are analysed and a non-standard
category involving under- and over-aged primary school enrollees are
identified. Although it is found that female education is positively
related to country infection rates, there is scope to reduce infection
rates by substituting one type of education for another. It is estimated
that female infection rates peak within 15-17 years of the first case
reported.
Journal: Applied Economics
Pages: 491-503
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392045
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392045
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:491-503
Template-Type: ReDIF-Article 1.0
Author-Name: Claire Champenois
Author-X-Name-First: Claire
Author-X-Name-Last: Champenois
Author-Name: Dirk Engel
Author-X-Name-First: Dirk
Author-X-Name-Last: Engel
Author-Name: Oliver Heneric
Author-X-Name-First: Oliver
Author-X-Name-Last: Heneric
Title: What kind of German biotechnology start-ups do venture capital companies and corporate investors prefer for equity investments?
Abstract:
The paper deals with the role played by private equity investors (venture
capital companies and corporate investors) in the emergence of a new
biotechnology industry in Germany in the second half of the 90's. Our
analysis takes into account the different business models and business
fields to be found in the biotechnology industry. Based on theoretical
arguments, a great relevance of venture capital companies (VCC) in
financing young innovative biotechnology firms developing health care
applications and technology platforms is expected, whereas corporate
investors like incumbents in pharmaceutical and chemical industries may
play a more important role in financing supplier companies. The empirical
analysis is based on 378 biotechnology firms, founded between 1995 and
1999. Descriptive results emphasize a crucial importance of the access to
venture capital provided by venture capital companies: VCC are venturing
partner of 42 percent of healthcare developer in their early stage.
Opposite to that, corporate investors are marginally involved as venturing
partner of high risk projects. The observed pattern also holds in a
multivariate analysis which controls for some core variables as
determinants of equity funding. The result for corporate investors differs
from observations in the US for collaborative arrangements. Therefore,
country specific settings may matter.
Journal: Applied Economics
Pages: 505-518
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500391146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391146
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:505-518
Template-Type: ReDIF-Article 1.0
Author-Name: Cinthia Cabral da Costa
Author-X-Name-First: Cinthia Cabral da
Author-X-Name-Last: Costa
Author-Name: Heloisa Lee Burnquist
Author-X-Name-First: Heloisa Lee
Author-X-Name-Last: Burnquist
Author-Name: Joaquim Jose Martins Guilhoto
Author-X-Name-First: Joaquim Jose Martins
Author-X-Name-Last: Guilhoto
Title: Relations of the regional Brazilian cane agro-industry with the national economy: analysis applied to the Centre-South and North-Northeast
Abstract:
Cane, sugar and ethanol production in Brazil has been divided between two
major production regions, the Centre-South (CS) and the North-Northeast
(NNE), which present very different productivity, and henceforth
production costs. The CS average productivity is more than 72 tonnes of
cane per hectare, while average productivity in the NNE is 49 tonnes per
hectare. The objective of the study was to establish interrelations
between the cane agro-industry and other regional sectors and with the
overall Brazilian economy. This framework was used to compare a demand
impact upon regional cane production upon the regional and the overall
Brazilian economy. An interregional input-output matrix was used to
characterize how regional demand impacts on both regional and overall
Brazilian economies. Rasmussen-Hirschman indexes, together with a pure
linkage index were used for the analysis. In addition, production
multipliers, with and without considering endogenous family consumption
were estimated. The results showed that a positive demand impact upon the
cane agro-industry produces a greater impact upon the NNE compared to the
CS, considering income effects, indicating that cane production is more
important for the NNE than for the CS. These results can be useful to
establish priorities for development policies for the country.
Journal: Applied Economics
Pages: 519-531
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500391039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391039
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:519-531
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Falk
Author-X-Name-First: Martin
Author-X-Name-Last: Falk
Title: What drives business Research and Development (R&D) intensity across Organisation for Economic Co-operation and Development (OECD) countries?
Abstract:
This paper empirically investigates the potential determinants of
business-sector R&D intensity using a panel of OECD (countries for the
period of 1975-2002 with data measured as five-year averages). Estimates
using a system GMM estimator controlling for endogeneity show a high
degree of persistence in business-sector R&D expenditures. Tax incentives
for R&D have a significant and positive impact on business R&D spending
regardless of the specification and estimation techniques. Furthermore, we
find that expenditures for R&D performed by universities are significantly
positively related to business enterprise sector expenditures on R&D
indicating that public sector R&D and private R&D are complements. Direct
R&D subsidies and the high-tech export share are significantly positively
related to business-sector R&D intensity, but these effects are only
significant using the first-differenced GMM estimator. The static fixed
effects results show that countries characterised by strong patent rights
appear to have higher R&D intensities, but this effect is no longer
significant in the dynamic panel data model.
Journal: Applied Economics
Pages: 533-547
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500391187
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391187
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:533-547
Template-Type: ReDIF-Article 1.0
Author-Name: Edinaldo Tebaldi
Author-X-Name-First: Edinaldo
Author-X-Name-Last: Tebaldi
Author-Name: Bruce Elmslie
Author-X-Name-First: Bruce
Author-X-Name-Last: Elmslie
Title: Sexual orientation and labour supply
Abstract:
This is the first study of the effects of sexual orientation on labour
supply. After discussing various reasons to expect that labour supply
could differ by sexual orientation, the 2001 Current Population Survey is
used to test for differences in both labour supply and labour market
status (part-time, full-time, and not employed). It is found that gay men
supply less labour than married and unmarried heterosexual men. With
regard to women, it is found that lesbians supply more labour and are more
likely to be employed full-time than either married or unmarried
heterosexual women. Extensive controls are used and links to the
discrimination literature are found.
Journal: Applied Economics
Pages: 549-562
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500293789
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293789
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:549-562
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Female labour force participation, fertility and infant mortality in Australia: some empirical evidence from Granger causality tests
Abstract:
This study applies Granger causality tests within a multivariate error
correction framework to examine the relationship between female
participation rates, infant mortality rates and fertility rates for
Australia using annual data from 1960 to 2000. Decomposition of variance
and impulse response functions are also considered. The main findings are
twofold. First, in the short run there is unidirectional Granger causality
running from the fertility rate to female labour force participation and
from the infant mortality rate to female labour force participation while
there is neutrality between the fertility rate and infant mortality rate.
Second, in the long run both the fertility rate and infant mortality rate
Granger cause female labour participation.
Journal: Applied Economics
Pages: 563-572
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500118838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118838
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:563-572
Template-Type: ReDIF-Article 1.0
Author-Name: Nigel Key
Author-X-Name-First: Nigel
Author-X-Name-Last: Key
Author-Name: Michael Roberts
Author-X-Name-First: Michael
Author-X-Name-Last: Roberts
Author-Name: Erik O'Donoghue
Author-X-Name-First: Erik
Author-X-Name-Last: O'Donoghue
Title: Risk and farm operator labour supply
Abstract:
This study uses a large increase in US Federal crop insurance subsidies
as a natural experiment to identify the importance of risk for farm
operator labour supply. Subsidy increases induced greater crop insurance
coverage, which in turn reduced farmers' financial risks. Crop insurance
participation data are merged with farm-level Census of Agriculture data
from 1992 and 1997 to compare how individuals' off-farm labour supply
changed in response to the policy-induced change in insurance coverage.
The empirical approach controls for unobserved heterogeneity and accounts
for the censored nature of the data. It is found that greater insurance
coverage reduces the off-farm labour supply of operators who produced at
least $100 000 of output, and increased the labour supply of small-farm
operators who produced less than $25 000 of output.
Journal: Applied Economics
Pages: 573-586
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500369043
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369043
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:573-586
Template-Type: ReDIF-Article 1.0
Author-Name: Kaili Shen
Author-X-Name-First: Kaili
Author-X-Name-Last: Shen
Author-Name: David Giles
Author-X-Name-First: David
Author-X-Name-Last: Giles
Title: Rational exuberance at the mall: addiction to carrying a credit card balance
Abstract:
The Becker-Murphy model of rational addiction is tested with New Zealand
credit card debt data. The results clearly favour the rational addiction
model over the myopic, backward-looking model. The estimated short-run and
long-run price elasticities are -0.58 and -2.32 respectively, and the
estimated rate of time-preference is 6.7% per quarter.
Journal: Applied Economics
Pages: 587-592
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500369167
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369167
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:587-592
Template-Type: ReDIF-Article 1.0
Author-Name: Titus Awokuse
Author-X-Name-First: Titus
Author-X-Name-Last: Awokuse
Title: Export-led growth and the Japanese economy: evidence from VAR and directed acyclic graphs
Abstract:
This paper explores the causal relationship between real exports and GDP
growth in Japan using two recently developed causal modelling approaches.
Using Japanese time series, the paper employed the augmented VAR
methodology developed by Toda and Yamamoto (1995) to test for Granger
non-causality. Then, a more recently developed technique of directed
acyclic graphs (DAG) was also used in providing over-identifying
restrictions on the innovations from a vector autoregression (VAR) model.
In contrast to prior analyses, the application of DAG techniques allows
for the examination of both contemporaneous and dynamic causal structure
of the exports-productivity nexus. The empirical results reveal that the
causal path between exports and GDP growth in Japan is bi-directional.
Furthermore, other variables such as capital and foreign output are also
significant determinants of productivity growth in Japan.
Journal: Applied Economics
Pages: 593-602
Issue: 5
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600619594
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600619594
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Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:593-602
Template-Type: ReDIF-Article 1.0
Author-Name: Roshni Mangalore
Author-X-Name-First: Roshni
Author-X-Name-Last: Mangalore
Title: Income, health and health care utilization in the UK
Abstract:
The aim of this paper is to analyse the links between income, health and
health care utilisation behaviour using longitudinal data from the British
Household Panel Survey. The emphasis is to frame the analysis as a social
phenomenon, so that the dynamics of individual health production in the
social context can be understood. The study estimates the relationships
between income, health and health care utilisation with lag effects. The
empirical results support the hypothesis that these three variables
influence each other with lag effects and that many social and economic
factors influence an individual's probability of having a health problem
or making use of health care facilities, even when such facilities are
free at the point of use.
Journal: Applied Economics
Pages: 605-617
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397192
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397192
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:605-617
Template-Type: ReDIF-Article 1.0
Author-Name: Mats Hammarstedt
Author-X-Name-First: Mats
Author-X-Name-Last: Hammarstedt
Title: The predicted earnings differential and immigrant self-employment in Sweden
Abstract:
This paper investigates the influence of the predicted earnings
differential between self-employment and wage-employment on
self-employment propensities among immigrants in Sweden. Immigrants from
non-European countries have essentially lower earnings from
self-employment and wage-employment than immigrants from European
countries. It is found that the difference between an immigrant's
predicted earnings in self- and wage-employment has a strong influence on
an immigrant's self-employment decision. A one unit increase in the log
differential between self-employment and wage-employment earnings increase
the self-employment rate among immigrants by about 5 percentage points,
suggesting that discriminatory wages in the wage-employment sector may
push immigrants towards self-employment.
Journal: Applied Economics
Pages: 619-630
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397069
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397069
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:619-630
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Jarrett
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Jarrett
Author-Name: Eric Kyper
Author-X-Name-First: Eric
Author-X-Name-Last: Kyper
Title: Capital market efficiency and the predictability of daily returns
Abstract:
Studies of the weak form of the capital market efficiency theorem infer
that there are no predictable properties of the time series of prices of
traded securities on organized markets. We examine the weak form of the
efficient markets hypothesis with respect to daily closing prices to
indicate evidence that daily closing prices have predictable properties.
Furthermore, this study of individual securities prices of traded
securities on organized markets corroborates previous findings of studies
of stock market indexes both in the United States and in other nations'
bourses or stock exchanges. Often, these studies indicated that daily
patterns are present in the times series of securities prices. The purpose
of this paper is to clarify the existence of time series characteristics
of daily stock prices of securities traded on organized exchanges. This
study differs from previous studies where the focus was on index numbers
of daily stock market prices rather than the actual prices of traded
securities in the United States. Furthermore, this study is important
because of the weak theory of market efficiency and its application to
short-term forecasting of closing prices of traded securities.
Journal: Applied Economics
Pages: 631-636
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600581422
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600581422
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:631-636
Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Harrison
Author-X-Name-First: Teresa
Author-X-Name-Last: Harrison
Title: Hospital mergers: who merges with whom?
Abstract:
Merger pairings are categorized based on the ownership status, teaching
status, hospital size, caseload severity, and geographical distance of
merging hospitals to determine the types of hospitals that tend to merge
with each other. The results show that mergers between two non-teaching,
nonprofit or for-profit hospitals occur more often, but that only
ownership status, not teaching status, affects the propensity to merge
after controlling for other merger pair characteristics. This paper also
finds that hospitals are more likely to merge with a partner of similar
size and close geographical proximity, but not necessarily the closest
candidate. However, ownership status, not distance between hospitals, is
the dominant determinant of merger pairs.
Journal: Applied Economics
Pages: 637-647
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500395360
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500395360
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:637-647
Template-Type: ReDIF-Article 1.0
Author-Name: Suwen Pan
Author-X-Name-First: Suwen
Author-X-Name-Last: Pan
Author-Name: Helen Jensen
Author-X-Name-First: Helen
Author-X-Name-Last: Jensen
Author-Name: Wayne Fuller
Author-X-Name-First: Wayne
Author-X-Name-Last: Fuller
Author-Name: Samarendu Mohanty
Author-X-Name-First: Samarendu
Author-X-Name-Last: Mohanty
Title: The effects of local labour market conditions on welfare programme participation
Abstract:
A fractional imputation method is applied to Iowa administrative data to
deal with a problem of missing data. The effects of local labour market
conditions and mobility of household heads on Family Investment Program
(FIP) participation are evaluated. Results show that mobility increases
the opportunity for employment and decreases the FIP participation rate
for low-income families. An increase in predicted unemployment rates
decreases labour force participation and increases programme
participation; an increase in unpredicted unemployment rates increases
labour force participation and decreases programme participation. Overall,
the effects are relatively larger in rural areas than in nonrural areas in
Iowa.
Journal: Applied Economics
Pages: 649-659
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397259
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397259
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:649-659
Template-Type: ReDIF-Article 1.0
Author-Name: Kent Matthews
Author-X-Name-First: Kent
Author-X-Name-Last: Matthews
Author-Name: Jonathan Shepherd
Author-X-Name-First: Jonathan
Author-X-Name-Last: Shepherd
Author-Name: Vaseekaran Sivarajasingham
Author-X-Name-First: Vaseekaran
Author-X-Name-Last: Sivarajasingham
Title: Violence-related injury and the price of beer in England and Wales
Abstract:
The paper examines the influence of the real price of beer on
violence-related injuries across the economic regions in England and
Wales. The data are monthly frequency of violent-injury collected from a
stratified sample of 58 National Health Service Emergency Departments
1995-2000. An econometric model based on economic, socio-demographic and
environmental factors was estimated using panel techniques. It is shown
that the rate of violence-related injury is negatively related to the real
price of beer, as well as economic, sporting and socio-demographic
factors. The principal conclusion of the paper is that the regional
distribution of the incidence of violent injury is related to the regional
distribution of the price of beer. The major policy conclusion is that
increased alcohol prices would result in substantially fewer violent
injuries and reduced demand on trauma services.
Journal: Applied Economics
Pages: 661-670
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397341
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397341
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:661-670
Template-Type: ReDIF-Article 1.0
Author-Name: Qinghua Liu
Author-X-Name-First: Qinghua
Author-X-Name-Last: Liu
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: Geographic aggregation and induced innovation in American agriculture
Abstract:
The induced innovation hypothesis is tested for the USA and western
regions using cointegration procedures. An error correction model
separates short-run and long-run effects of relative price changes. A
significant difference in the elasticities of factor substitution along
the isoquant and the innovation possibility curve implies induced
innovation. The estimated results support the hypothesis for Washington,
the Pacific Northwest, and the Western Region, but not for the nation.
Corroborative tests of weak exogeneity fail to support the hypothesis in
any of the geographic units. Changes in output level and research
investment do not significantly bias agricultural technology in the USA.
Journal: Applied Economics
Pages: 671-682
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397457
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397457
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:671-682
Template-Type: ReDIF-Article 1.0
Author-Name: H. Evren Damar
Author-X-Name-First: H. Evren
Author-X-Name-Last: Damar
Title: The effects of shared ATM networks on the efficiency of Turkish banks
Abstract:
This study investigates whether forming shared ATM networks has yielded
positive benefits for banks in Turkey by increasing their productive
efficiency. Using a Data Envelopment Analysis (DEA) approach, pure
technical and scale efficiency scores of Turkish banks are estimated and
analysed for the period 2000-2003. The results suggest that although it is
possible to realize positive effects through ATM sharing arrangements,
there are multiple factors that determine which banks realize such
benefits. The geographical distribution of shared ATMs between urban and
rural markets and the level of competition between banks within urban
areas are shown to be important determinants of differences in bank
efficiency. This discrepancy between the gains associated with ATM sharing
may have important implications concerning the adoption and sharing of new
technology by banks in developing countries.
Journal: Applied Economics
Pages: 683-697
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500394264
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500394264
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:683-697
Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Liang Chen
Author-X-Name-First: Chao-Liang
Author-X-Name-Last: Chen
Title: The portable guarantee to exchange back an old defined benefit for a new defined contribution (DC) pension plan
Abstract:
As a defined contribution (DC) pension plan is introduced to replace a
defined benefit (DB) pension plan, the portability benefit from a DC
pension plan costs the employees to bear the investment risk from managing
the pension fund. To protect the retirement income and maintain the
portability benefit, a guarantee to exchange back the old defined benefit
is supposed to be demanded for the new DC plan's participants in the
guarantee market. In light of such a demand, this article applies a
claim-terminating insurance pricing model to offer a contingent claims
pricing model for a portable pension guarantee. Using the new labor
pension plan of Taiwan as an illustration, a guaranteed DC pension will
carry an extra cost of almost 50% up to over 100% of the plan's
contributions over the participant's work life, given the current
mandatory minimum requirement of a contribution rate of 6%.
Journal: Applied Economics
Pages: 699-706
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397127
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397127
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:699-706
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Chiarini
Author-X-Name-First: Bruno
Author-X-Name-Last: Chiarini
Author-Name: Elisabetta Marzano
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Marzano
Title: Market consumption and hidden consumption. A test for substitutability
Abstract:
In this paper an empirical analysis is performed on the relationship
between private consumption and underground economy for the Italian case.
It is found that private market consumption and underground (or hidden)
consumption may be defined as 'complementary goods': an increase in
underground consumption tends to increase family market consumption and
increase its marginal utility. An implication of this result is that the
nonmarket sector does not offer hedging opportunities to the
consumer-worker as stressed by Busato and Chiarini's (2004) artificial
economy. Moreover, wealth effects associated with a change in underground
consumption are negative. A statistical model confirms this structural
interpretation.
Journal: Applied Economics
Pages: 707-716
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500396632
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396632
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:707-716
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Biman Chand Prasad
Author-X-Name-First: Biman Chand
Author-X-Name-Last: Prasad
Title: Doubling fish exports or garment exports: which would benefit the Fijian economy most? Evidence from a computable general equilibrium model
Abstract:
The need to diversify Fiji's export base has been identified as an
important avenue for reducing Fiji's vulnerabilities in international
trade. This paper poses the question: Doubling fish exports or garment
exports: which would be most beneficial for the Fijian economy? To achieve
the goal of this paper, the computable general equilibrium model is used,
this being at the forefront of research on 'impact studies'. The main
finding is that when garment exports and fish exports are doubled, the
benefits to the Fijian economy are greater from garment exports,
suggesting that the latter has stronger linkages with the rest of the
economy. On the basis of this finding, policymakers should divert
resources towards sustaining the garment industry whose future is
uncertain due to expiring trade agreements and unstable economic policies.
Journal: Applied Economics
Pages: 717-723
Issue: 6
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500396731
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396731
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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:717-723
Template-Type: ReDIF-Article 1.0
Author-Name: Hubert Ooghe
Author-X-Name-First: Hubert
Author-X-Name-Last: Ooghe
Author-Name: Tine De Langhe
Author-X-Name-First: Tine
Author-X-Name-Last: De Langhe
Author-Name: Jan Camerlynck
Author-X-Name-First: Jan
Author-X-Name-Last: Camerlynck
Title: Profile of multiple versus single acquirers and their targets: a research note
Abstract:
Few studies have addressed the pre-take-over financial characteristics of
multiple versus single acquirers and their targets. Therefore this study
investigates whether multiple acquirers, with some experience in acquiring
companies, might acquire firms with different (better) financial
characteristics than single acquirers. Results confirm this hypothesis in
multiple ways. It seems that multiple acquirers look for complementary
firms in terms of sales and growth. Multiple acquirers specifically want
to acquire companies with a high sales generating ability in order to
improve their own sales generating ability.
Journal: Applied Economics
Pages: 725-733
Issue: 7
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500293581
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500293581
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Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:725-733
Template-Type: ReDIF-Article 1.0
Author-Name: Knut Veisten
Author-X-Name-First: Knut
Author-X-Name-Last: Veisten
Author-Name: Ståle Navrud
Author-X-Name-First: Ståle
Author-X-Name-Last: Navrud
Title: Contingent valuation and actual payment for voluntarily provided passive-use values: Assessing the effect of an induced truth-telling mechanism and elicitation formats
Abstract:
A fundamental question about the contingent valuation (CV) method is to
what degree it predicts actual payments (AP). This has particularly been
an intriguing matter related to voluntary provision of public goods
representing primarily passive-use values. This paper reports the results
from such a CV-AP comparison. Applying a voluntary payment mechanism there
exists a theoretical expectation of upward bias in CV estimates and
downward bias in AP. This study applied an induced truth-telling mechanism
in one treatment group to assess the hypothetical bias effect in CV. The
CV estimates in this treatment group were significantly lower than in the
group that did not face this mechanism. But this effect was limited to
those responding/acting to dichotomous choice, not affecting those
responding to open-ended questions about willingness to pay.
Journal: Applied Economics
Pages: 735-756
Issue: 7
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500400152
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400152
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Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:735-756
Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Berg
Author-X-Name-First: Nathan
Author-X-Name-Last: Berg
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Title: Same-sex sexual behaviour: US frequency estimates from survey data with simultaneous misreporting and non-response
Abstract:
Survey-based research concerning sexual behaviour almost inevitably
confronts the simultaneous problems of misreporting and non-response.
These problems lead to disparities among estimates of the number and
characteristics of those who engage in same-sex sexual behaviour. This
paper proposes a statistical model to consistently estimate the frequency
of same-sex sexual behaviour in the presence of non-ignorable misreporting
and non-response. The model is fitted using 1991-2000 General Social
Survey data. Frequency estimates corrected for simultaneous misreporting
and non-response are reported. According to the model, 7.1% of US males
and 4.1% of females - 15.8 million individuals - are not exclusively
heterosexual. Allowing for misreporting and non-response increases the
estimated same-sex frequency by more than four million. The model reveals
new patterns between misreporting and non-response probabilities and
standard demographic variables such as age and income.
Journal: Applied Economics
Pages: 757-769
Issue: 7
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427114
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427114
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Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:757-769
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Fernandez Kranz
Author-X-Name-First: Daniel Fernandez
Author-X-Name-Last: Kranz
Title: Why has wage inequality increased more in the USA than in Europe? An empirical investigation of the demand and supply of skill
Abstract:
During the past two decades the wage gap between high and low skill
labour has increased more in the USA than in many European countries. In
this paper, the correspondence between occupation and education is used to
construct aggregates of skill supply, skill demand and unemployment by
skill group that are comparable across countries. Using individual data
for years 1983-1994, it is found that the relative demand for skilled
labour has increased to a similar extent in the USA and in Europe and that
wage inequality remained low in Europe partly because the European
relative supply of skill increased much faster than in the USA, and partly
because European relative wages were rigid, which caused an increase in
unemployment among the low-skilled.
Journal: Applied Economics
Pages: 771-788
Issue: 7
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500396087
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396087
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Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:771-788
Template-Type: ReDIF-Article 1.0
Author-Name: Connie Bayudan
Author-X-Name-First: Connie
Author-X-Name-Last: Bayudan
Title: Wives' time allocation and intrahousehold power: evidence from the Philippines
Abstract:
Utilizing a rich survey data collected in the Southern part of the
Philippines, this paper examines the time allocation of wives within the
collective household framework by investigating not only the role of
socioeconomic factors but also the influence of various intrahousehold
power indicators. Analysis of autonomy and finality of intrahousehold
decisions discloses that decisions are not unilaterally decided by a
single household member, a result which confirms the prediction of
collective household framework. Adopting a simple test procedure, this
paper also examines which of the competing household models, collective or
unitary, best describes these Philippine time-use data. Testing results
lend support to the validity of the collective household framework.
Journal: Applied Economics
Pages: 789-804
Issue: 7
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600597972
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600597972
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Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:789-804
Template-Type: ReDIF-Article 1.0
Author-Name: Markus Knell
Author-X-Name-First: Markus
Author-X-Name-Last: Knell
Author-Name: Helmut Stix
Author-X-Name-First: Helmut
Author-X-Name-Last: Stix
Title: Three decades of money demand studies: differences and similarities
Abstract:
By analysing almost 1000 money demand estimations this paper attempts to
summarize the diverse findings of the literature on this topic. Using both
descriptive statistics and meta-regressions, several stylized facts are
derived about the two most prominent determinants of money demand income
and interest rate elasticities. In particular, it is shown we show that
the size and signs of average elasticities are systematically related to
the choice of included variables (e.g. M1 or M3, short-run or long-run
interest rates), the country grouping (e.g. USA versus Germany) and the
empirical specification (e.g. the inclusion of one or two interest rates).
Journal: Applied Economics
Pages: 805-818
Issue: 7
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600569377
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600569377
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Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:805-818
Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: Multicointegration in US consumption data
Abstract:
The present study tests for the existence of multicointegration between
real per capita private consumption expenditure and real per capita
disposable personal income in the USA. In doing so, the study exploits the
fact that the flows of disposable income and consumption expenditure on
the one hand, and the stock of consumers' wealth, which can be considered
as cumulative past discrepancies between the flows of income and
expenditure, on the other hand, can be thought of as a stock-flow model,
in which multicointegration is likely to occur. Recently developed I(2)
techniques are applied for testing for multicointegrating relations and
find supporting evidence for the existence of multicointegration in US
consumption data.
Journal: Applied Economics
Pages: 819-833
Issue: 7
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500398760
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500398760
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Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:819-833
Template-Type: ReDIF-Article 1.0
Author-Name: Murat Isik
Author-X-Name-First: Murat
Author-X-Name-Last: Isik
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Title: An analysis of the impact of climate change on crop yields and yield variability
Abstract:
This paper develops an econometric model of stochastic production
functions to quantify the impacts of climatic variables on the mean,
variance, and covariance of crop yields. The estimates of the production
function parameters and their elasticities are utilized to analyse the
impacts of the projected climate change on agriculture. The results show
that the climate change will have modest effects on the mean crop yields,
but will significantly reduce the variance and covariance for most of the
crops considered. The results have implications for allocations of
agricultural land among crops and for crop production mix.
Journal: Applied Economics
Pages: 835-844
Issue: 7
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500193682
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500193682
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Handle: RePEc:taf:applec:v:38:y:2006:i:7:p:835-844
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Cashin
Author-X-Name-First: Paul
Author-X-Name-Last: Cashin
Author-Name: Catherine Pattillo
Author-X-Name-First: Catherine
Author-X-Name-Last: Pattillo
Title: African terms of trade and the commodity terms of trade: close cousins or distant relatives?
Abstract:
This paper examines whether there is a relationship between the commodity
terms of trade (the price of primary commodities relative to the price of
manufactures) and the net barter terms of trade of 42 Sub-Saharan African
countries. For most countries, there is little evidence of a stable,
long-run relationship between the two terms of trade series. Accordingly,
the practice in the literature of proxying for movements in any given
country's terms of trade by using an aggregate index of relative commodity
prices is inappropriate, and is likely to engender misleading policy
conclusions.
Journal: Applied Economics
Pages: 845-859
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600683244
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600683244
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:845-859
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Dolfin
Author-X-Name-First: Sarah
Author-X-Name-Last: Dolfin
Title: An examination of firms' employment costs
Abstract:
The existence of quasi-fixed costs of work may affect firms' desired
employee hours and number of workers, which has important implications for
the estimation of labour supply parameters. Firm-level data from the 1982
Employment Opportunity Pilot Project is used to estimate the importance to
firms of employee quasi-fixed costs related to searching, hiring,
training, and firing. Specifically, this paper examines how these costs
affect number of workers and hours per worker, turnover, and vacancies, to
the extent that the costs are determined by the firm's presumably
exogenous industrial classification. An attempt is made to control for
biases due to employee heterogeneity as well. Results show that higher
costs are associated with lower turnover, fewer vacancies, and longer
hours as predicted by a model of labour demand.
Journal: Applied Economics
Pages: 861-878
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600597576
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600597576
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:861-878
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Charikleia Economidou
Author-X-Name-First: Charikleia
Author-X-Name-Last: Economidou
Author-Name: Gour Goswami
Author-X-Name-First: Gour
Author-X-Name-Last: Goswami
Title: Bilateral J-curve between the UK vis-a-vis her major trading partners
Abstract:
Currency depreciation is said to worsen the trade balance first before
resulting in an improvement, yielding a short-run pattern labelled the
J-curve phenomenon. While early studies tested the J-curve by using
aggregate trade data, a few recent studies have employed bilateral data,
mostly between the US and her major trading partners. In this paper we
extend the literature by considering the experience of the UK. We test the
phenomenon between the UK and her twenty major trading partners by
employing data over 1973Q1-2001Q3 period. In most instances, we find no
support for the J-curve in the short-run. In the long run, only in five
cases has the exchange rate had significant impact on the bilateral trade
balance.
Journal: Applied Economics
Pages: 879-888
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500399388
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399388
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:879-888
Template-Type: ReDIF-Article 1.0
Author-Name: Enrica Carbone
Author-X-Name-First: Enrica
Author-X-Name-Last: Carbone
Title: Understanding intertemporal choices
Abstract:
Previous experimental results show clearly that many subjects do not
optimize when solving a life-cycle consumption problem. What do they do?
This paper attempts to resolve this question, looking at the discounting,
hyperbolic and rolling models as possible explanations. Data from two
experiments (one an experiment with a typical subject pool and the second
an experiment with subjects from the CentER panel) is used, and the
advantage of having experimental data is exploited, which means that one
can actually estimate the hyperbolic model. It is shown that the
(exponential) discounting model appears to give the best explanation -
suggesting that subjects do look ahead (as they should) but increasingly
less as time passes (as they should not in the context of these
experiments).
Journal: Applied Economics
Pages: 889-898
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500399313
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399313
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:889-898
Template-Type: ReDIF-Article 1.0
Author-Name: Tilman Bruck
Author-X-Name-First: Tilman
Author-X-Name-Last: Bruck
Author-Name: John P. Haisken-De New
Author-X-Name-First: John P. Haisken-De
Author-X-Name-Last: New
Author-Name: Klaus Zimmermann
Author-X-Name-First: Klaus
Author-X-Name-Last: Zimmermann
Title: Creating low skilled jobs by subsidizing market-contracted household work
Abstract:
The paper analyses the determinants of household work contracted in the
German shadow economy. The German socio-economic household panel, which
enumerates casual domestic employment, is used to estimate the demand for
such household work. The regressors include regional wage rates, household
income and several control variables for household composition. It is
found that the demand for household work in the shadow economy is very
income elastic. This suggests that targeted wage subsidies, linked to
household work agencies, would be very effective in raising the legal
demand for domestic help. A wage subsidy of 50% of wage costs could thus
establish up to 500 000 new jobs for previously unemployed or non-working
low skilled workers. The net fiscal costs of such a scheme are about 6.200
Euro per full-time job. In addition, society benefits from more law
enforcement and from a raised female labour supply, especially by highly
qualified mothers.
Journal: Applied Economics
Pages: 899-911
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397598
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397598
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:899-911
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco de Castro
Author-X-Name-First: Francisco
Author-X-Name-Last: de Castro
Title: The macroeconomic effects of fiscal policy in Spain
Abstract:
This paper focuses on the effects of fiscal policy in Spain analysed in a
VAR context. Fiscal shocks are found to involve significant effects on
GDP, private consumption, private investment, interest rates and prices.
Non-Keynesian effects are observed. Moreover, evidence on the channels
highlighted in the literature for such effects to arise is found, notably
the effects of permanent income on consumption and investment on the
demand side, coupled with the response of the equilibrium wage on the
supply side affecting entrepreneurial profits and investment. The response
of interest rates seems to reinforce both effects. Furthermore, the
different readings of spending or taxes do not affect macroeconomic
variables homogeneously.
Journal: Applied Economics
Pages: 913-924
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500369225
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369225
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:913-924
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund
Author-X-Name-First: Christian
Author-X-Name-Last: Grund
Title: Overcompensation by severance payments
Abstract:
An important aim of severance payments is to reduce the economic
disadvantages of dismissed employees. However, it may well be the case
that a considerable fraction of employees is actually better off, if they
are re-employed shortly after their dismissal. This is the first attempt
to estimate the relevance of overcompensation by severance payments. It is
found that about 7% of dismissed employees or about one quarter of those
with severance payments are overcompensated in Germany. In particular,
employees with many years of tenure have chances to receive severance
payments as well as wage increases in their new jobs subsequent to
dismissal.
Journal: Applied Economics
Pages: 925-930
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600581950
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600581950
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:925-930
Template-Type: ReDIF-Article 1.0
Author-Name: Oya Pınar Ardıc
Author-X-Name-First: Oya Pınar
Author-X-Name-Last: Ardıc
Author-Name: Faruk Selcuk
Author-X-Name-First: Faruk
Author-X-Name-Last: Selcuk
Title: The dynamics of a newly floating exchange rate: the Turkish case
Abstract:
In recent years, many emerging market economies have switched or are in
the process of switching to a floating exchange rate regime. Most of these
economies have a history of high inflation and a high level of foreign
currency denominated debt. Therefore, the stability of the exchange rate
and the dynamics of its volatility are more crucial than before. This
paper analyses the dynamics of exchange rate in Turkey in the aftermath of
recent float in February 2001. The Turkish experience is a particularly
important one, and provides valuable lessons for other countries as the
Central Bank is trying to simultaneously contain the volatility of
exchange rate and pursue an implicit inflation targeting policy. The
reported findings indicate that the Central Bank policies, accompanied
with favourable external factors, were effective in taming the volatility
of the exchange rate in a relatively short period of time. However, there
is a significant real appreciation of the currency during the same period.
Given the high level of public debt and real interest rates, the current
state of the economy is very susceptible to any adverse shocks.
Journal: Applied Economics
Pages: 931-941
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600649732
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600649732
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:931-941
Template-Type: ReDIF-Article 1.0
Author-Name: Taegi Kim
Author-X-Name-First: Taegi
Author-X-Name-Last: Kim
Author-Name: Changsuh Park
Author-X-Name-First: Changsuh
Author-X-Name-Last: Park
Title: Productivity growth in Korea: efficiency improvement or technical progress?
Abstract:
This paper shows that the productivity gains in Korean manufacturing are
mostly from efficiency improvement rather than from technical progress.
These findings are contrary to those of previous sectoral studies of
Korean and Taiwanese manufacturing, but are consistent with those of
cross-country studies. Regression results show that both domestic and
foreign R&D played an important role in increasing efficiency and
technical progress in Korean manufacturing. However, domestic R&D has more
effect on technical progress, while foreign R&D has played a relatively
stronger role in efficiency improvement.
Journal: Applied Economics
Pages: 943-954
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600639006
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600639006
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:943-954
Template-Type: ReDIF-Article 1.0
Author-Name: Maria de los Angeles Garcia Valinas
Author-X-Name-First: Maria de los Angeles Garcia
Author-X-Name-Last: Valinas
Title: Analysing rationing policies: drought and its effects on urban users' welfare (Analysing rationing policies during drought)
Abstract:
The aim of this paper is to study the impact on consumers of rationing
policies implemented during water shortages. Water scarcity gives rise to
the need for rationing, and various methods, including supply cutoffs, can
be used. A model is devised to quantify the welfare losses associated with
qualitive and quantitive restrictions. Based on virtual prices and using
the consumer surplus as a welfare measurement, welfare variations for
different users have been calculated. To achieve the aim, information
relative to Seville (Spain) has been used, analysing the drought period
that took place in the first half of the 1990s. It has been possible to
observe the main source that led to welfare losses for each kind of user.
Journal: Applied Economics
Pages: 955-965
Issue: 8
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600638925
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600638925
File-Format: text/html
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Handle: RePEc:taf:applec:v:38:y:2006:i:8:p:955-965
Template-Type: ReDIF-Article 1.0
Author-Name: Dale Cloninger
Author-X-Name-First: Dale
Author-X-Name-Last: Cloninger
Author-Name: Roberto Marchesini
Author-X-Name-First: Roberto
Author-X-Name-Last: Marchesini
Title: Execution moratoriums, commutations and deterrence: the case of Illinois
Abstract:
In an earlier work the impact of an execution moratorium in Texas on the
monthly returns (first differences) of homicides was investigated. That
moratorium was judicially imposed pending the appeal of a death sentence
that could have had widespread consequences. A similar methodology is
applied to the state of Illinois. In January 2000, the Governor of
Illinois declared a moratorium on executions pending a review of the
judicial process that condemned certain murderers to the death penalty. In
January 2003 just prior to leaving office, the Governor commuted the death
sentences of all of those who then occupied death row. It is found that
these actions are coincident with the increased risk of homicide incurred
by the residents of Illinois over the 48 month post-event period for which
data were available. The increased risk produced an estimated 150
additional homicides during the post-event period.
Journal: Applied Economics
Pages: 967-973
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500462020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462020
File-Format: text/html
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:967-973
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel
Author-X-Name-First: Rajeev
Author-X-Name-Last: Goel
Author-Name: Edward Hsieh
Author-X-Name-First: Edward
Author-X-Name-Last: Hsieh
Author-Name: Michael Nelson
Author-X-Name-First: Michael
Author-X-Name-Last: Nelson
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: Demand elasticities for Internet services
Abstract:
Noting the phenomenal growth of the Internet during the last few years,
the spectacular nature of the information technology revolution
represented by it, and lack of direct studies of demand for Internet
services, this paper makes a beginning toward providing price- and
income-elasticity estimates by using a simple model and cross-country OECD
data for the year 2000. Seven main points are noted. First, the demand
seems price-inelastic in all variants estimated by us. Second, the income
elasticity appears to be unity or larger, indicating Internet services may
not constitute a 'necessity'. Third, the absolute price elasticity seems
lower, particularly for the broader price measure, in the group of users
than for subscribers. Fourth, the income elasticity also seems smaller for
users than for subscribers. Fifth, the income-elasticity estimates suggest
that measures to encourage Internet usage through subscriptions might not
seem equity enhancing, but encouragement of usage through increased access
to non-subscriber users should not carry such an implication. Sixth, the
inelastic demand indicates scope for price leverage by providers. Seventh,
the inelastic demand might have some revenue implications relative to the
possibility of imposing or raising taxes on Internet usage.
Journal: Applied Economics
Pages: 975-980
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600581448
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600581448
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:975-980
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Bohringer
Author-X-Name-First: Christoph
Author-X-Name-Last: Bohringer
Author-Name: Heinz Welsch
Author-X-Name-First: Heinz
Author-X-Name-Last: Welsch
Title: Burden sharing in a greenhouse: egalitarianism and sovereignty reconciled
Abstract:
The allocation of emission entitlements across countries is the single
most controversial issue in international climate policy. Extreme
positions within the policy debate range from entitlements based on
current emission patterns (sovereignty) to entitlements based on
equal-per-capita allocations (egalitarianism). This paper shows that
gradual convergence from sovereignty towards egalitarianism could provide
a pragmatic solution to the equity debate: When combined with
international emissions trading, the convergence approach stands out for
offering the developing countries substantial incentives for participation
in the international greenhouse gas abatement effort without imposing
excessive burdens on the industrialized countries.
Journal: Applied Economics
Pages: 981-996
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500399453
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399453
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:981-996
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Kalotychou
Author-X-Name-First: Elena
Author-X-Name-Last: Kalotychou
Author-Name: Sotiris Staikouras
Author-X-Name-First: Sotiris
Author-X-Name-Last: Staikouras
Title: Volatility and trading activity in Short Sterling futures
Abstract:
The objective of the present study is to examine the interplay between
information, trading volume and volatility in Short Sterling futures. More
specifically, the paper concentrates on the role of liquidity variables as
conduits of information arrival and whether such variables could be an
exclusive platform of the market's information set. The analytical
framework employed to examine the interaction among those factors is based
on the conditional volatility family of techniques. The approach is well
suited as it naturally leads to examine the interaction among volatility
and sources of information. In an attempt to identify proxies of
information and their role in determining volatility, four main
conclusions have emerged. First, the empirical findings suggest that both
volume and open interest exhibit a positive correlation with volatility.
Second, based on the current methodology, one can observe the persistence
and importance of GARCH effects after accounting for liquidity. Third, the
liquidity variables remain significantly exogenous compared with other
studies. Finally, although both liquidity variables are found significant,
their role as vehicles of transmitting information is proved to be weak
with respect to the information itself.
Journal: Applied Economics
Pages: 997-1005
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500400038
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400038
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:997-1005
Template-Type: ReDIF-Article 1.0
Author-Name: Per Sandberg
Author-X-Name-First: Per
Author-X-Name-Last: Sandberg
Title: Variable unit costs in an output-regulated industry: The Fishery
Abstract:
Departing from general cost theory of the firm and bioeconomic theory of
the fishery, this study contributes with an empirical examination of how
variable unit costs in a Norwegian demersal and pelagic fishery depend on
output and the fish stock. The identification of the separate effects that
the two factors have on costs is not common in the literature. Three
Norwegian fleets fishing Norwegian spring spawning herring (Clupea
Harengus) and five Norwegian fleets fishing Northeast Arctic cod (Gadus
Morhua) are evaluated. The findings indicate that variable unit costs fall
in output in both fisheries. The results also show that variable unit
costs fall in fish stock in the demersal fishery, but with a stock
elasticity of variable unit costs in absolute terms significantly less
than 1. These results are of relevance to a manager seeking the optimal
harvest rule and to understand fishermen's incentives when individual
vessel quotas are reduced.
Journal: Applied Economics
Pages: 1007-1018
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500405912
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405912
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1007-1018
Template-Type: ReDIF-Article 1.0
Author-Name: Nicole Jonker
Author-X-Name-First: Nicole
Author-X-Name-Last: Jonker
Author-Name: Hans van Ophem
Author-X-Name-First: Hans
Author-X-Name-Last: van Ophem
Author-Name: Joop Hartog
Author-X-Name-First: Joop
Author-X-Name-Last: Hartog
Title: Dual track or academic route for auditors: does it matter?
Abstract:
In the Netherlands auditors can be trained in a part-time educational
track in which students combine working and studying or in a full-time
educational track. The former training is relatively firm-specific whereas
the latter training is relatively general. Applying human capital theory,
we expect higher wage growth for full-time educated auditors than for
dual-educated auditors. Furthermore, full-time educated auditors may have
better outside options than part-time educated auditors. This may make it
easier for them to switch employers than for the part-time educated
auditors. The predictions on tenure and wages of differently educated
auditors are supported by the estimation results in this paper. The
part-time, dual track appears an important route for students from a lower
socioeconomic background.
Journal: Applied Economics
Pages: 1019-1035
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500400459
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400459
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1019-1035
Template-Type: ReDIF-Article 1.0
Author-Name: Seval Mutlu
Author-X-Name-First: Seval
Author-X-Name-Last: Mutlu
Author-Name: Azucena Gracia
Author-X-Name-First: Azucena
Author-X-Name-Last: Gracia
Title: Spanish food expenditure away from home (FAFH): by type of meal
Abstract:
Changes in household income, wife's labour force participation, household
size, and other demographic factors influence purchasing meals away from
home in Spain. Spanish household expenditure on lunch, breakfast and
snacks away from home were investigated within the household production
theory context. The Becker's model states that consumers maximize their
utility subject not only to the budget constraint but also to a time
constraint. Moreover, this model assumes that consumers demand not only
the food product itself but also the associated convenience to save time
in food preparation. Therefore, the relation between the value of time and
food away from home has a high relevance. Data come from the Spanish
Continuous Household Survey for 1996. Due to the large number of zeros in
the dependent variable, different dependent variable censured models
(Double Hurdle, Infrequency of Purchase, etc.) have been specified and
estimated. These studies found that food purchasing behaviour away from
home of Spanish consumers differ by type of meal. Income, household
characteristics and the opportunity cost of woman time are important
factors determining food consumption patterns away from home. Moreover,
income and opportunity cost of woman time present a positive effect on
away from home consumption for type of meal.
Journal: Applied Economics
Pages: 1037-1047
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500399750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399750
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1037-1047
Template-Type: ReDIF-Article 1.0
Author-Name: Nadir Ocal
Author-X-Name-First: Nadir
Author-X-Name-Last: Ocal
Title: Nonlinear models, composite longer leading indicator and forecasts for UK real GDP
Abstract:
This paper examines the role of the Office for National Statistics
Composite Longer Leading Indicator, in nonlinear business cycle models for
growth rates of UK real gross domestic product (GDP). These models are of
the smooth transition regression class, with the transition between
“regimes” expressed as functions of lagged changes in the
leading indicator. In general, evidence is found of business cycle regime
asymmetries, with increases and decreases in the leading indicator
implying distinct responses for the dependent variable. Single transition
function appears to capture these asymmetries satisfactorily. Nonlinear
models provide more accurate one-step ahead forecasts than corresponding
linear leading indicator models.
Journal: Applied Economics
Pages: 1049-1053
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500399784
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399784
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1049-1053
Template-Type: ReDIF-Article 1.0
Author-Name: Hannu Tervo
Author-X-Name-First: Hannu
Author-X-Name-Last: Tervo
Title: Regional unemployment, self-employment and family background
Abstract:
This paper analyses the role of regional unemployment on self-employment.
The paper argues that family background separates individuals with respect
to the effect of unemployment. The empirical analysis is based on data on
a sample of Finnish residents aged 0-14 years in 1970 whose subsequent
employment is examined. The results show that high unemployment in a
region pushes individuals from self-employed families into
self-employment, while it has the opposite effect on individuals from wage
earner families. The push effect seems to work only among those
individuals who already have entrepreneurial skills through their family
background.
Journal: Applied Economics
Pages: 1055-1062
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500400053
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400053
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1055-1062
Template-Type: ReDIF-Article 1.0
Author-Name: Hugo Toledo
Author-X-Name-First: Hugo
Author-X-Name-Last: Toledo
Title: Workers and trade liberalization: simulating the potential impact of the FTAA on Venezuela's output and wages
Abstract:
The Specific Factors model of production and trade with seven skilled
labour categories and specific capital in three leading sectors of the
Venezuelan economy is used to produce comparative static elasticities of
changing prices on factor prices and output as a result of the emerging
Free Trade Agreement of the Americas (FTAA). Results show that every
labour group except production labour is projected to lose under free
trade, while manufacturing capital gains at the expense of capital in
agriculture and services due to a projected increase in export demand.
Adjustments to free trade are large implying the importance of economic
policy in the transition period to free trade.
Journal: Applied Economics
Pages: 1063-1069
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500400103
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400103
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1063-1069
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Makdissi
Author-X-Name-First: Paul
Author-X-Name-Last: Makdissi
Author-Name: Quentin Wodon
Author-X-Name-First: Quentin
Author-X-Name-Last: Wodon
Title: Fuel poverty and access to electricity: comparing households when they differ in needs
Abstract:
Although sequential stochastic dominance techniques have been used in the
literature to make comparisons of income poverty which are robust to the
assumptions made about the economies of scale within households, the
techniques could be applied to a much wider set of issues. In this paper,
these techniques are applied to energy deprivation in Guatemala. Fuel
poverty is compared among households with and without access to
electricity, and it is assessed whether access to electricity for those
who do not have access currently would eliminate the observed difference
in fuel poverty between the two groups of households.
Journal: Applied Economics
Pages: 1071-1078
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600649948
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600649948
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1071-1078
Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman
Author-X-Name-First: Adnan
Author-X-Name-Last: Kasman
Author-Name: Canan Yildirim
Author-X-Name-First: Canan
Author-X-Name-Last: Yildirim
Title: Cost and profit efficiencies in transition banking: the case of new EU members
Abstract:
This paper analyses cost and profit efficiencies in commercial banking in
the eight Central and Eastern European countries that became new members
to the European Union. Common stochastic cost and profit frontiers with
country-specific variables are employed in order to take into account
macro-economic and financial sector conditions that vary over time and
across countries. The impact of foreign ownership on performance is also
examined. The results indicate a wide range of cost and profit
inefficiency scores across countries and across different size groups. All
banking systems in the sample display significant levels of cost and
profit inefficiency and there does not seem to be any continuous
improvement in performance over time. There is also some evidence that
foreign banks perform, on average, better than domestic banks.
Journal: Applied Economics
Pages: 1079-1090
Issue: 9
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600639022
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600639022
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Handle: RePEc:taf:applec:v:38:y:2006:i:9:p:1079-1090
Template-Type: ReDIF-Article 1.0
Author-Name: Axel Dreher
Author-X-Name-First: Axel
Author-X-Name-Last: Dreher
Title: Does globalization affect growth? Evidence from a new index of globalization
Abstract:
The study develops an index of globalization covering its three main
dimensions: economic integration, social integration, and political
integration. Using panel data for 123 countries in 1970-2000 it is
analysed empirically whether the overall index of globalization as well as
sub-indexes constructed to measure the single dimensions affect economic
growth. As the results show, globalization indeed promotes growth. The
dimensions most robustly related with growth refer to actual economic
flows and restrictions in developed countries. Although less robustly,
information flows also promote growth whereas political integration has no
effect.
Journal: Applied Economics
Pages: 1091-1110
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392078
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392078
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1091-1110
Template-Type: ReDIF-Article 1.0
Author-Name: Adriana Neligan
Author-X-Name-First: Adriana
Author-X-Name-Last: Neligan
Title: Public funding and repertoire conventionality in the German public theatre sector: an econometric analysis
Abstract:
This study empirically examines the relationship between public funding
and repertoire decisions in the German public theatre sector. A
cross-sectional econometric model is constructed to estimate the effects
for a sample of 127 public theatres covering the theatre season 1998/1999
using a conventionality index as the dependent variable which has to be
calculated first. The empirical results show that public subsidy,
subscription income, multiple venues, the existence of other theatres in a
community as well as the size and the level of education of a community
have a significant impact on repertoire conventionality.
Journal: Applied Economics
Pages: 1111-1121
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500405961
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405961
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1111-1121
Template-Type: ReDIF-Article 1.0
Author-Name: Volker Clausen
Author-X-Name-First: Volker
Author-X-Name-Last: Clausen
Author-Name: Bernd Hayo
Author-X-Name-First: Bernd
Author-X-Name-Last: Hayo
Title: Asymmetric monetary policy effects in EMU
Abstract:
This paper develops a semi-structural modelling approach to study
asymmetric monetary transmission in Europe. A system of dynamic equations
containing reaction functions for monetary policy as well as output gap
and inflation equations is simultaneously estimated for France, Germany
and Italy. We find asymmetries on the demand side in the strength of
interest rate transmission and on the supply side in the effects of the
output gap on inflation. The responses are similar in Germany and Italy
and generally stronger than in France. Out-of-sample tests do not find a
structural break in the transmission mechanisms prior to the establishment
of the European Monetary Union.
Journal: Applied Economics
Pages: 1123-1134
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600581497
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600581497
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1123-1134
Template-Type: ReDIF-Article 1.0
Author-Name: Bernhard Boockmann
Author-X-Name-First: Bernhard
Author-X-Name-Last: Boockmann
Author-Name: Viktor Steiner
Author-X-Name-First: Viktor
Author-X-Name-Last: Steiner
Title: Cohort effects and the returns to education in West Germany
Abstract:
Using a Mincer-type wage function, we estimate cohort effects in the
returns to education for West German workers born between 1925 and 1974.
The main problem to be tackled in the specification is to separately
identify cohort, experience, and possibly also age and year effects in the
returns. For women, we find a large and robust decline in schooling
premia: In the private sector, the returns to a further year of
post-compulsory education fell from ten per cent for the 1945-49 cohort to
about six per cent for those born in the early 1970s. Cohort effects in
men's returns to education are less obvious, but we do find evidence that
they, too, have declined. We conclude by identifying possible reasons for
the decline.
Journal: Applied Economics
Pages: 1135-1152
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500439168
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439168
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1135-1152
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Are Australia's tourism markets converging?
Abstract:
In this paper we make an important contribution towards understanding
Australia's tourism industry by examining whether or not Australia's
tourism markets are converging. We define convergence as the reduction in
tourist arrivals' differential, which is calculated as the difference
between total visitor arrivals to a country and visitor arrivals from a
particular tourist source market. We analyze Australia's thirteen major
tourist source markets using monthly data over the period January 1991 to
September 2003. To test for convergence, we use the univariate and panel
Lagrange multiplier (LM) tests. Our main finding is that when we allow for
two structural breaks in the data series, both univariate and panel LM
tests provide strong evidence for convergence of Australia's tourism
markets. This implies that policies aimed at attracting visitor arrivals
from any one of Australia's thirteen tourist source markets will boost the
volume of tourists coming into the country.
Journal: Applied Economics
Pages: 1153-1162
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500391377
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500391377
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1153-1162
Template-Type: ReDIF-Article 1.0
Author-Name: Saziye Gazioglu
Author-X-Name-First: Saziye
Author-X-Name-Last: Gazioglu
Author-Name: Aysit Tansel
Author-X-Name-First: Aysit
Author-X-Name-Last: Tansel
Title: Job satisfaction in Britain: individual and job related factors
Abstract:
Recently there has been a resurgence of interest in the analysis of job
satisfaction variables. Job satisfaction is correlated with labour market
behaviour such as productivity, quits and absenteeism. In this paper four
different measures of job satisfaction are related to a variety of
personal and job characteristics. The data used are from the 28 240
British employees in the Workplace Employee Relations Survey, 1997. This
data set is larger and more recent than in any previous studies. Four
measures of job satisfaction that have not previously been used are
considered: satisfaction with influence over job; satisfaction with amount
of pay; satisfaction with sense of achievement; and satisfaction with
respect from supervisors. The paper contributes to the literature by
analysing job satisfaction with respect to industrial composition and
occupations. One of the striking findings is that those in the education
and health sectors are less satisfied with their pay but more satisfied
with their sense of achievement. Further, it is found that employees who
received job training were more satisfied than those who had no training
opportunities. Unlike previous studies, it is found that married
individuals have lower job satisfaction levels than the unmarried. Other
results confirm those in the literature, such as women being more
satisfied than men, and a U-shaped relationship between satisfaction and
age.
Journal: Applied Economics
Pages: 1163-1171
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392987
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392987
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1163-1171
Template-Type: ReDIF-Article 1.0
Author-Name: Victor Matheson
Author-X-Name-First: Victor
Author-X-Name-Last: Matheson
Title: The effects of labour strikes on consumer demand in professional sports: revisited
Abstract:
Previous research has concluded that the 1981 and 1994-1995 Major League
Baseball (MLB) strikes have caused short-term losses in attendance but
have not resulted in any long-term effects on attendance. While total
attendance at MLB games following the 1994-1995 strike has recovered to
its pre-strike levels, this has been done only through the construction of
new stadiums at an unprecedented pace which cannot continue into the
future. After accounting for stadium effects, average MLB baseball
attendance has dropped significantly since the 1994-1995 strike.
Journal: Applied Economics
Pages: 1173-1179
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392193
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392193
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1173-1179
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Schaltegger
Author-X-Name-First: Christoph
Author-X-Name-Last: Schaltegger
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: Growth effects of public expenditure on the state and local level: evidence from a sample of rich governments
Abstract:
There is a vast empirical literature investigating the relationship
between government size and economic growth. But the empirical evidence of
growth effects of public expenditure using cross-country regressions is
still inconclusive. According to a number of authors this is not
surprising since the negative relationship only applies for rich countries
with a large public sector. Restricting their analysis on rich countries
only they can show the predicted negative impact. Naturally, a selection
of a sub-sample of rich countries is always somewhat arbitrary. Another
possibility is to concentrate on governments within a rich country.
However, only few studies investigate the effect of state and local
spending on economic growth. This study concentrates on the relationship
between public expenditure and economic growth within a rich country using
the full sample of state and local governments from Switzerland over the
1981-2001 period. The general finding is a fairly robust negative
relationship between government size and economic growth. However, in
contrast to public spending from operating budgets there is no significant
impact on economic growth by expenditure from capital budgets.
Journal: Applied Economics
Pages: 1181-1192
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392334
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392334
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1181-1192
Template-Type: ReDIF-Article 1.0
Author-Name: Rene Fahr
Author-X-Name-First: Rene
Author-X-Name-Last: Fahr
Author-Name: Uwe Sunde
Author-X-Name-First: Uwe
Author-X-Name-Last: Sunde
Title: Regional dependencies in job creation: an efficiency analysis for Western Germany
Abstract:
This paper investigates the efficiency of the matching process between
job seekers and vacancy posting firms in West Germany, using variation
across labour market regions and across time. The results of a stochastic
frontier analysis shed new light on the extent of and regional differences
in search frictions, on potential determinants of frictional
inefficiencies and on the consequences of German reunification for the
matching process. The paper also presents novel evidence on the complex
interactions between spatial contingencies among regional labour markets:
matching efficiency decreases with spatial autocorrelation in hiring,
implying indirect evidence for crowding externalities.
Journal: Applied Economics
Pages: 1193-1206
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600685140
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600685140
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1193-1206
Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Hung Wang
Author-X-Name-First: Jen-Hung
Author-X-Name-Last: Wang
Author-Name: Larry Tzeng
Author-X-Name-First: Larry
Author-X-Name-Last: Tzeng
Author-Name: Junji Tien
Author-X-Name-First: Junji
Author-X-Name-Last: Tien
Title: Willingness to pay and the demand for lotto
Abstract:
Why do many bettors participate in an unfair gamble, in particular a
lotto game, while at the same time purchase insurance? The
willingness-to-pay for lotto is analysed to find a 'rational' explanation
for a (local) risk-averter's participation in an unfair bet. A reasonable
case is found where bettors' preference can be approximately characterized
as a locally risk-averse and sufficiently prudent cubic function. Such
bettors dislike risk but prefer standard third moment of the payoff. The
result suggests that the traditional effective price for lotto demand may
omit important explanatory variables. We thus propose an alternative
method to examine the demand for lotto by incorporating the second and the
third moments of lotto's payoff. Evidence from Taiwan Lotto data supports
that lotto bettors could be both (locally) risk-averse and rational.
Journal: Applied Economics
Pages: 1207-1216
Issue: 10
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500405938
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405938
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Handle: RePEc:taf:applec:v:38:y:2006:i:10:p:1207-1216
Template-Type: ReDIF-Article 1.0
Author-Name: Avik Chakrabarti
Author-X-Name-First: Avik
Author-X-Name-Last: Chakrabarti
Title: Real exchange rates and real interest rates once again: a multivariate panel cointegration analysis
Abstract:
This paper employs multivariate panel cointegration techniques to
re-examine the empirical relationship between bilateral real exchange
rates and real interest rates. The results from a panel of 1470 quarterly
observations on Canada, France, Germany, Italy, Japan, UK, and USA over
the period 1977 to 1994 indicate the absence of any long-run relationship
between the two variables.
Journal: Applied Economics
Pages: 1217-1221
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500398695
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500398695
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1217-1221
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Eisenhauer
Author-X-Name-First: Joseph
Author-X-Name-Last: Eisenhauer
Author-Name: Luigi Ventura
Author-X-Name-First: Luigi
Author-X-Name-Last: Ventura
Title: The prevalence of hyperbolic discounting: some European evidence
Abstract:
Experimental matching data are used from the 2000 Bank of Italy Survey of
Household Income and Wealth (SHIW) and the 2000 wave of the Center for
Economic Research (CentER) Savings Survey at Tilburg University to compare
the relative frequencies of hyperbolic and exponential discounters. Among
3200 Italian respondents and 1400 Dutch respondents, less than a quarter
exhibited hyperbolic discounting. This finding is both statistically
significant and robust with respect to various assumptions regarding
utility; moreover, it holds across a wide variety of economic, social and
demographic characteristics. The youngest, poorest, most urban and least
educated individuals are the most likely to be hyperbolic discounters. In
addition, it is found that hyperbolic discounters accumulate less wealth
and are somewhat less likely than exponential discounters to utilize
commitment devices to constrain their future choices.
Journal: Applied Economics
Pages: 1223-1234
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392391
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392391
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1223-1234
Template-Type: ReDIF-Article 1.0
Author-Name: Martyn Duffy
Author-X-Name-First: Martyn
Author-X-Name-Last: Duffy
Title: Tobacco consumption and policy in the United Kingdom
Abstract:
In recent years, several structural changes and sequences of shocks have
occurred in the market for tobacco in the UK, including an explosive
growth in smuggling. This study examines whether it is still possible to
estimate a reliable, plausible tobacco demand equation from time series
data for the UK whilst allowing for all of the various shocks and
structural changes. A second objective of this study is to use the
estimated demand function to evaluate tobacco policy in the UK, including
the scope for using tax increases to achieve reduced consumption and
increased revenues. It is found that smuggling has diminished the revenue
yield of higher rates of duty, but total consumption of tobacco has been
reduced. In addition to the introduction of further measures to control
smuggling, policy may need to place more emphasis in the future on health
campaigns and smoking restrictions.
Journal: Applied Economics
Pages: 1235-1257
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392599
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392599
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1235-1257
Template-Type: ReDIF-Article 1.0
Author-Name: Yang Zou
Author-X-Name-First: Yang
Author-X-Name-Last: Zou
Title: Empirical studies on the relationship between public and private investment and GDP growth
Abstract:
This study performs empirical studies on the interaction between public
and private investment and GDP growth for Japan and the USA. Since the
data for each country used show features that are quite different from
each other, empirical methods of GMM (Generalized Method of Moments) and
OLS (Ordinary Least squares) are accordingly applied to Japan and the USA,
respectively. The empirical results suggest that both public and private
investment make great contributions to Japanese economic growth, while the
US private investment seems to play a much more significant role than
public investment.
Journal: Applied Economics
Pages: 1259-1270
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392649
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392649
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1259-1270
Template-Type: ReDIF-Article 1.0
Author-Name: Joaquim Andrade
Author-X-Name-First: Joaquim
Author-X-Name-Last: Andrade
Author-Name: Vladimir Teles
Author-X-Name-First: Vladimir
Author-X-Name-Last: Teles
Title: An empirical model of the Brazilian country risk -- an extension of the beta country risk model
Abstract:
This paper develops a statistical model to study the Brazilian country
risk using a country beta model in the spirit of Harvey and Zhou (1993),
Erb et al. (1996a, b) and Gangemi et al. (2000). Specifically, the impact
of macroeconomic variables is analysed using a time-varying parameter
approach. An extension of the original model is applied in order to verify
the parameters' stability over time. It is found that monetary policy had
a significant and stable impact on Brazil's country risk and international
reserves presented a significant impact only during the fixed exchange
rate period.
Journal: Applied Economics
Pages: 1271-1278
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426843
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426843
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1271-1278
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Hanafiah Harvey
Author-X-Name-First: Hanafiah
Author-X-Name-Last: Harvey
Title: How sensitive are Malaysia's bilateral trade flows to depreciation?
Abstract:
In an attempt to assess the impact of currency depreciation on the trade
balance, recent studies are employing disaggregated trade data to avoid
aggregation bias. However, since import and export prices are not
available at disaggregated level, recent studies are using export and
import values rather than their volumes so that they can establish direct
relation between inpayments and the exchange rate as well as between
outpayments and the exchange rate. This study explores the experience of
Malaysia. Bilateral inpayments and outpayments models are estimated
between Malaysia and her 14 trading partners using quarterly data and
bound testing approach to cointegration. The results show that while real
depreciation of the ringgit has short-run effects, in the long-run it
increases Malaysia's inpayments from only five trading partners.
Journal: Applied Economics
Pages: 1279-1286
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500405490
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405490
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1279-1286
Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Pons-Novell
Author-X-Name-First: Jordi
Author-X-Name-Last: Pons-Novell
Title: An analysis of a panel of Spanish GDP forecasts
Abstract:
This article undertakes an analysis of the forecasts included in the
Panel of Spanish Forecasts in order to highlight the fact that the
predictions made and the errors committed by the entities participating on
this panel contain information that is particularly useful in analysing
the evolution of the Spanish economy. Here, a study is undertaken of the
GDP growth forecasts for the Spanish economy for the period 2000 to 2002
made in distinct forecast time horizons. Specifically, it analyses whether
the forecasts are optimistic or pessimistic and whether new information
concerning the variable being predicted is used efficiently in revising
earlier forecasts.
Journal: Applied Economics
Pages: 1287-1292
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500399917
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399917
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1287-1292
Template-Type: ReDIF-Article 1.0
Author-Name: Kwabena Gyimah-Brempong
Author-X-Name-First: Kwabena
Author-X-Name-Last: Gyimah-Brempong
Author-Name: Jeffrey Racine
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Racine
Title: Alcohol availability and crime: a robust approach
Abstract:
The relationship between alcohol availability and crime is investigated
in this study. It first considers common parametric specifications that
have been used in the literature. After applying a powerful consistent
conditional moment test for correct specification, it is found that these
common parametric specifications are rejected by the data. The study then
proceeds with a robust nonparametric method that can have a rate of
convergence close to that for a correctly specified parametric model when
the underlying relationship is somewhat linear. The application of
nonparametric methods reveals structure present in the data that would
remain undetected when applying common parametric specifications, but more
importantly reveals that the impact of alcohol availability is
considerably higher than one might believe on the basis of the
misspecified parametric model. It is also found that the marginal effect
of alcohol availability on crime changes with the level of alcohol
availability.
Journal: Applied Economics
Pages: 1293-1307
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500398869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500398869
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1293-1307
Template-Type: ReDIF-Article 1.0
Author-Name: Kristian Jonsson
Author-X-Name-First: Kristian
Author-X-Name-Last: Jonsson
Title: Time-specific disturbances and cross-sectional dependency in a small-sample heterogeneous panel data unit root test
Abstract:
In their seminal work, Im et al. (1997, 2003) suggested that time series
for several cross-sectional units could be used to increase the power of
the Dickey--Fuller unit root test. They argued that when cross-sectional
correlation is a problem that can be modelled by a time-specific factor,
demeaning across the cross-sectional units can solve the problem. In this
study, this proposition is proven valid, but it is also shown that
previously supplied standardizing moments are inappropriate when the
number of cross-sections are small, causing size to differ from the
significance level. To correct this size distortion, the current paper
supplies response surface parameters that can be used to obtain moments
that are valid when a time-specific factor suffices for modelling
cross-sectional correlation in the heterogeneous panel data unit root
framework. The correct size of the panel data unit root test comes at the
cost of a somewhat lower power against a stationary alternative.
Journal: Applied Economics
Pages: 1309-1317
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500397671
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500397671
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1309-1317
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Rup Singh
Author-X-Name-First: Rup
Author-X-Name-Last: Singh
Title: Demand for money in India: 1953-2003
Abstract:
The demand for money, especially in the developing countries, is an
important relationship for formulating appropriate monetary policy and
targeting monetary variables. In this paper the demand for narrow money in
India is estimated and its robustness evaluated. It is found that there is
a stable demand for money for almost half a century from 1953 to 2003.
There is no evidence for any significant effects of the 1991 financial
reforms.
Journal: Applied Economics
Pages: 1319-1326
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500396228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396228
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1319-1326
Template-Type: ReDIF-Article 1.0
Author-Name: Andres Picazo-Tadeo
Author-X-Name-First: Andres
Author-X-Name-Last: Picazo-Tadeo
Author-Name: Ernest Reig-Martinez
Author-X-Name-First: Ernest
Author-X-Name-Last: Reig-Martinez
Title: Agricultural externalities and environmental regulation: evaluating good practice in citrus production
Abstract:
Economic activity takes place in a scenario characterized by an
increasing number of environmental regulations aimed at bringing under
control the emission of contaminating wastes. In this paper, we evaluate
the impact of transforming a code of good practice in nitrogen
fertilization on Spanish citrus fruit farms into an environmental
regulation of compulsory fulfilment. Using data envelopment techniques, we
calculate unrestricted and environmentally regulated short-run maximum
profits. Both profit values are then used to compute an index of the cost
of regulation. Our results suggest that the cost of shifting from a merely
recommended practice to a binding rule is low. On average, the loss of
profit computed is only about 4%. Furthermore, we find that farms' overall
efficiency is low and that the current gap between observed and regulated
fertilization practices could be overcome by improving overall management
efficiency.
Journal: Applied Economics
Pages: 1327-1334
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500399966
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399966
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1327-1334
Template-Type: ReDIF-Article 1.0
Author-Name: Burak Gunalp
Author-X-Name-First: Burak
Author-X-Name-Last: Gunalp
Author-Name: Tuncay Celik
Author-X-Name-First: Tuncay
Author-X-Name-Last: Celik
Title: Competition in the Turkish banking industry
Abstract:
This study employs the Panzar-Rosse H-statistic to assess the competitive
environment of the Turkish banking industry over the period 1990 to 2000.
The results indicate that for the period under consideration bank revenues
behaved as if they were earned under conditions of monopolistic
competition. Therefore, the observed high profitability of the Turkish
banking sector does not seem to be an indication of an increase in
monopoly power. The liberalization process and deregulation measures
appear to have beneficial effects on competition.
Journal: Applied Economics
Pages: 1335-1342
Issue: 11
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500405656
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405656
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Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1335-1342
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Roosenboom
Author-X-Name-First: Peter
Author-X-Name-Last: Roosenboom
Author-Name: Tjalling van der Goot
Author-X-Name-First: Tjalling
Author-X-Name-Last: van der Goot
Title: Broad-based employee stock options grants and IPO firms
Abstract:
This paper examines the broad-based grant of employee stock options
(ESOs) in the period following the Initial Public Offering (IPO). Stock
option grants are used to reduce the negative effects of conflicts of
interests associated with a firm's going public. The study documents that
option grants can be seen as corporate governance instruments for a number
of model specifications. Also, it is found that there is a robust relation
between option grants and market and accounting returns, respectively. To
the best of the authors' knowledge, no previous study has investigated the
determinants of the grants of employee stock options in the post-IPO
period to both upper-level and lower-level executives during a period of
sixteen years. Because the cross-sectional data of this study amply
encompasses more than a business cycle it is possible to examine the
grants of ESOs across tight and soft labour markets. During the former
type of labour market it appears that more options are granted. Also, the
empirical results provide evidence that option grants are an increasing
function of the employees' benefits for the firm. Finally, the findings
show that cash constrained firms appear to use employee stock option
grants in place of cash compensation.
Journal: Applied Economics
Pages: 1343-1351
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500396897
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396897
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1343-1351
Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: How similar are alcohol drinkers? International evidence
Abstract:
Stigler and Becker (1977) argue that tastes neither change capriciously
nor differ importantly between people; it is differences in prices and
incomes that determine differences in behaviour. In this paper we analyse
the alcohol consumption patterns of drinkers from 8 industrialized
countries. We identify a number of empirical regularities and verify
Stigler and Becker's hypothesis that income and price elasticities of
demand are international constants by showing that alcohol consumption
patterns in the eight countries exhibit intriguing similarities. The
income and price elasticities of alcohol are found to be about 0.8 and
-0.6, respectively, in all eight countries.
Journal: Applied Economics
Pages: 1353-1362
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500396780
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396780
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1353-1362
Template-Type: ReDIF-Article 1.0
Author-Name: Diane Dawson
Author-X-Name-First: Diane
Author-X-Name-Last: Dawson
Author-Name: Rowena Jacobs
Author-X-Name-First: Rowena
Author-X-Name-Last: Jacobs
Author-Name: Stephen Martin
Author-X-Name-First: Stephen
Author-X-Name-Last: Martin
Author-Name: Peter Smith
Author-X-Name-First: Peter
Author-X-Name-Last: Smith
Title: The impact of patient choice and waiting time on the demand for health care: results from the London Patient Choice project
Abstract:
In a number of countries where health care is publicly funded, policies
to introduce greater patient choice are being implemented. In most cases
patient choice is seen as an instrument to reduce waiting times for
elective (non-emergency) hospital services. An important issue is whether
facilitating greater patient choice will increase the demand for health
care and thereby undermine the achievement of reduced waiting times. A
large scale pilot of choice in the London metropolitan area permits a test
of the hypothesis that choice will affect demand. This paper estimates a
model of the demand for elective surgery using a panel of 150 English
acute hospitals over the period 1995 to 2004 for three surgical
specialties. It examines whether demand shifted following the introduction
of the London Patient Choice Project in 2002. The results suggest that the
choice project only shifted NHS inpatient demand in orthopaedics and that
this shift was inwards.
Journal: Applied Economics
Pages: 1363-1370
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500398810
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500398810
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1363-1370
Template-Type: ReDIF-Article 1.0
Author-Name: Ozge Akinci
Author-X-Name-First: Ozge
Author-X-Name-Last: Akinci
Author-Name: Olcay Yucel Culha
Author-X-Name-First: Olcay Yucel
Author-X-Name-Last: Culha
Author-Name: Umit Ozlale
Author-X-Name-First: Umit
Author-X-Name-Last: Ozlale
Author-Name: Gulbin Sahinbeyoğlu
Author-X-Name-First: Gulbin
Author-X-Name-Last: Sahinbeyoğlu
Title: The effectiveness of foreign exchange interventions under a floating exchange rate regime for the Turkish economy: a post-crisis period analysis
Abstract:
The reported study has two purposes: first, it attempts to improve the
literature on foreign exchange interventions of the central banks for the
emerging market economies, an area not previously studied in detail. The
Turkish economy in the post-crisis period constitutes a good example in
this context. Second, it proposes a new methodology, a time-varying
parameter model, to analyse the effectiveness of the foreign exchange
interventions. When the results from such an exercise are compared with
those obtained from an event-study analysis, it is found that
purchase-based interventions seem to be successful, especially after
stabilization of the financial markets. In that sense, an asymmetry is
detected regarding the effectiveness of interventions. Concerning the
relationship between interest rates and exchange rates, it is found that
the uncovered interest rate parity condition operates in an unconventional
way, supporting the views put forward by recent emerging markets
literature.
Journal: Applied Economics
Pages: 1371-1388
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392995
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392995
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1371-1388
Template-Type: ReDIF-Article 1.0
Author-Name: Amir Kia
Author-X-Name-First: Amir
Author-X-Name-Last: Kia
Title: Economic policies and demand for money: evidence from Canada
Abstract:
This study identifies Canadian fiscal and monetary policy regime changes
that could influence the services of money. It is argued that if these
policy regime changes were not incorporated in the estimation of demand
for real balances, the resulting estimate would be biased and unstable.
Using Canadian monthly data for the January 1975 to June 2001 period, the
paper estimates a standard demand-for-money (M1) function with and without
these policy regime changes. It was found the demand for money in Canada
is stable over the short- and long-run periods when these policy regime
changes are incorporated and the estimated coefficients have correct
signs.
Journal: Applied Economics
Pages: 1389-1407
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600684879
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600684879
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1389-1407
Template-Type: ReDIF-Article 1.0
Author-Name: Ansgar Belke
Author-X-Name-First: Ansgar
Author-X-Name-Last: Belke
Author-Name: Thorsten Polleit
Author-X-Name-First: Thorsten
Author-X-Name-Last: Polleit
Title: Monetary policy and dividend growth in Germany: long-run structural modelling versus bounds testing approach
Abstract:
This study examines the long-run relationship between monetary policy and
dividend growth in Germany. For this purpose, cointegration is tested for
between both variables in the period 1974 to 2003. However, problems
related to spurious regression arise from the mixed order of integration
of the series used, from mutual causation between the variables and from
the lack of a long-run relationship among the variables of the model.
These problems are addressed by applying the bounds testing approach to
cointegration in addition to a more standard long-run structural modelling
approach. In principle, both procedures are capable of dealing with the
controversial issue of the exogeneity of monetary policy vis-a-vis
dividend growth. However, the structural modelling approach still leaves a
certain degree of uncertainty about the integration properties of the
interest rate and the dividend growth. Hence, one feels legitimized to
refer to the bounds testing procedure and to conclude that in the longer
term short-term rates drive stock returns but not vice versa.
Journal: Applied Economics
Pages: 1409-1423
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500369100
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500369100
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1409-1423
Template-Type: ReDIF-Article 1.0
Author-Name: Finn Førsund
Author-X-Name-First: Finn
Author-X-Name-Last: Førsund
Author-Name: Roberto Zanola
Author-X-Name-First: Roberto
Author-X-Name-Last: Zanola
Title: The art of benchmarking: Picasso prints and auction house performance
Abstract:
The influence of the auction house on the price of comparable art objects
is an issue in the economics of arts literature. The standard approach has
been to run hedonic price regressions including the auction house as a
dummy variable. The approach in this paper is to apply benchmarking tools
developed in the efficiency and productivity literature directly to the
auction house as a unit. New performance indices are developed based on a
DEA benchmarking technique to analyse auction houses. The new indices
discriminate well between auction houses by allowing one to identify both
contemporaneous and inter-temporal performances. Additional best
performance results are obtained for specific attributes.
Journal: Applied Economics
Pages: 1425-1434
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500400384
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400384
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1425-1434
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Welters
Author-X-Name-First: Riccardo
Author-X-Name-Last: Welters
Author-Name: Joan Muysken
Author-X-Name-First: Joan
Author-X-Name-Last: Muysken
Title: Employer search and employment subsidies
Abstract:
In this paper insights into the literature on employment subsidy
evaluation and that on employer search are merged to explore uncharted
territory: the firm and job characteristics leading to deadweight loss in
employment subsidy schemes. A model is developed which integrates various
arguments found in the existing employer search literature. Using a survey
of Dutch firms for 1999, the model predictions are confirmed. The richness
of the data set enables one to construct some measures of deadweight loss
which are new to the existing literature. It turns out that firms which
experience low screening costs (large firms), firms that forego
substantial production due to unfilled jobs (vacancies for full-time jobs)
and firms operating in slack labour market conditions cause significantly
more deadweight loss.
Journal: Applied Economics
Pages: 1435-1448
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500218745
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500218745
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1435-1448
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Stephanie Leach
Author-X-Name-First: Stephanie
Author-X-Name-Last: Leach
Title: Performance evaluation of the English Premier Football League with data envelopment analysis
Abstract:
This paper uses data envelopment analysis (DEA) to evaluate the
performance of English Premier League football clubs from 1998/99 to
2002/03 combining sport and financial variables. The paper evaluates how
close the clubs are relative to the frontier of best practices, analysing
how they manage sport as well as financial results. Managerial
implications of the research are devised.
Journal: Applied Economics
Pages: 1449-1458
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500396574
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500396574
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1449-1458
Template-Type: ReDIF-Article 1.0
Author-Name: John Gibson
Author-X-Name-First: John
Author-X-Name-Last: Gibson
Author-Name: Ananda Patabendige
Author-X-Name-First: Ananda
Author-X-Name-Last: Patabendige
Title: Policy reform and labour demand in branches of Sri Lankan manufacturing industry
Abstract:
Many policy reforms in developing countries aim to remove factor market
distortions. Whether such reforms reduce unemployment depends partly on
the substitution possibilities between labour and other factors of
production. This paper examines labour demand in seven branches of Sri
Lankan manufacturing industry, using data on 4-digit industrial categories
over the 1990 to 1997 period. The Box-Cox transformation is used to allow
for flexible, and data-dependent, elasticities. The elasticity of
capital-labour substitution varies widely across the branches of industry
and is usually variable rather than constant. The average, long-run
own-wage elasticity of labour demand for the manufacturing sector is
estimated as -0.80, so factor price policy should have an important effect
on labour demand in this setting.
Journal: Applied Economics
Pages: 1459-1467
Issue: 12
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500367997
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500367997
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Handle: RePEc:taf:applec:v:38:y:2006:i:12:p:1459-1467
Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsson
Author-X-Name-First: Fredrik
Author-X-Name-Last: Carlsson
Author-Name: Åsa Lofgren
Author-X-Name-First: Åsa
Author-X-Name-Last: Lofgren
Title: Airline choice, switching costs and frequent flyer programmes
Abstract:
Switching costs are costs that customers face when switching from one
firm to another. In markets such as the airline market where repeated
purchases are common, switching costs may be substantial. In this paper,
the switching costs are estimated for domestic airline routes in Sweden
between 1992 and 2002. In addition, the determinants of these switching
costs are tested for; in particular, to what extent factors such as
frequent flyer programmes and flag carriers have an effect on switching
costs. A substantial switching cost is found. Although a large part of
this calculated switching cost can be attributed to perceived quality
differences, it is also found that frequent flyer programmes contribute a
non-negligible part of the switching cost. The paper ends with a brief
discussion on the welfare consequences of switching costs, where the
connection between habit formation and switching costs is discussed.
Journal: Applied Economics
Pages: 1469-1475
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500419608
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500419608
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1469-1475
Template-Type: ReDIF-Article 1.0
Author-Name: S. Grosskopf
Author-X-Name-First: S.
Author-X-Name-Last: Grosskopf
Author-Name: S. Self
Author-X-Name-First: S.
Author-X-Name-Last: Self
Author-Name: O. Zaim
Author-X-Name-First: O.
Author-X-Name-Last: Zaim
Title: Estimating the efficiency of the system of healthcare financing in achieving better health
Abstract:
This paper contributes to the effort to model and measure how the method
of financing of health expenditure affects the efficiency with which
better health can be achieved. The focus is on the health system
efficiency at the country level, which provides an alternative to the work
done in the WHO in this regard. The approach uses frontier techniques as
in the WHO studies; however the paper appeals to the economic index number
theory of quantity and productivity indexes, which have well-established
axiomatic properties, and provides a means for aggregating multiple health
output proxies without having to attach arbitrary weights. This allows the
proposal of a specification that embeds health sector performance in a
broader index of economic inputs and outputs and allows for comparisons
across countries and time.
Journal: Applied Economics
Pages: 1477-1488
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500424798
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500424798
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1477-1488
Template-Type: ReDIF-Article 1.0
Author-Name: R. Scott Hacker
Author-X-Name-First: R. Scott
Author-X-Name-Last: Hacker
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Title: Tests for causality between integrated variables using asymptotic and bootstrap distributions: theory and application
Abstract:
Causality tests in the Granger's sense are increasingly applied in
empirical research. Since the unit root revolution in time-series
analysis, several modifications of tests for causality have been
introduced in the literature. One of the recent developments is the
Toda-Yamamoto modified Wald (MWALD) test, which is attractive due to its
simple application, its absence of pre-testing distortions, and its basis
on a standard asymptotical distribution irrespective of the number of unit
roots and the cointegrating properties of the data. This study
investigates the size properties of the MWALD test and finds that in small
sample sizes this test performs poorly on those properties when using its
asymptotical distribution, the chi-square. It is suggested that use be
made of a leveraged bootstrap distribution to lower the size distortions.
Monte Carlo simulation results show that an MWALD test based on a
bootstrap distribution has much smaller size distortions than
corresponding cases when the asymptotic distribution is used. These
results hold for different sample sizes, integration orders, and error
term processes (homoscedastic or ARCH). This new method is applied to the
testing of the efficient market hypothesis.
Journal: Applied Economics
Pages: 1489-1500
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500405763
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405763
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1489-1500
Template-Type: ReDIF-Article 1.0
Author-Name: Euston Quah
Author-X-Name-First: Euston
Author-X-Name-Last: Quah
Author-Name: Edward Choa
Author-X-Name-First: Edward
Author-X-Name-Last: Choa
Author-Name: K. C. Tan
Author-X-Name-First: K. C.
Author-X-Name-Last: Tan
Title: Use of damage schedules in environmental valuation: The case of urban Singapore
Abstract:
Increasing concerns over environmental degradation have amplified the
role of environmental economics and the valuation of non-pecuniary
environmental resources as tools of analysis to facilitate the design of
policies. To date, however, environmental valuation methods have continued
to be unreliable, misleading and contentious as a guide to resource
allocations and damage compensations. In this paper, a damage schedule is
developed based on the scales of relative importance translated from
people's judgments about values of various environmental damages or
losses. The variance stable rank method is applied to the paired
comparison responses to obtain the scale values as well as the importance
of rankings. Statistical tests of significance are used to determine the
level of the agreement among the survey respondents and the degree of
correspondence between different respondent groups. This will determine
the number of relative importance scales required to adequately represent
the responses from all respondents. The scales of relative importance will
then be translated into damage schedules. The setting for analysis is
based on urban Singapore.
Journal: Applied Economics
Pages: 1501-1512
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500399842
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399842
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1501-1512
Template-Type: ReDIF-Article 1.0
Author-Name: Leo Turcotte
Author-X-Name-First: Leo
Author-X-Name-Last: Turcotte
Author-Name: John Robst
Author-X-Name-First: John
Author-X-Name-Last: Robst
Author-Name: Solomon Polachek
Author-X-Name-First: Solomon
Author-X-Name-Last: Polachek
Title: Medical interventions among pregnant women in fee-for-service and managed care insurance: a propensity score analysis
Abstract:
This paper extends earlier research on the effect of managed care on the
receipt of four medical interventions for pregnant women: ultrasound,
induction/stimulation of birth, electronic fetal monitor, and Caesarean
delivery. Propensity score methods are used to account for sample
selection issues regarding insurance choice. Managed care enrollees are
more likely to receive an ultrasound, which may be indicative of receiving
better prenatal care. Managed care plans reduce the rate of Caesarean
deliveries, but such limitations may be beneficial given the substantial
medical evidence that Caesarean deliveries are over-utilized. The results
indicate that insurance coverage does influence treatment intensity, but
that utilization controls and provider financial incentives do not
adversely affect care for pregnant women.
Journal: Applied Economics
Pages: 1513-1525
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426892
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426892
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1513-1525
Template-Type: ReDIF-Article 1.0
Author-Name: Alexandre Gohin
Author-X-Name-First: Alexandre
Author-X-Name-Last: Gohin
Author-Name: Herve Guyomard
Author-X-Name-First: Herve
Author-X-Name-Last: Guyomard
Author-Name: Chantal Le Mouël
Author-X-Name-First: Chantal Le
Author-X-Name-Last: Mouël
Title: Tariff protection elimination and Common Agricultural Policy reform: implications of changes in methods of import demand modelling
Abstract:
The study proposes a way for accommodating the traditional Armington
assumption to capture the possibility for a country to import imperfect
substitutes as well as perfect substitutes for domestically produced
goods. When this possibility is incorporated into a modelling framework,
then a Common Agricultural Policy elimination scenario, including the
setting to zero of import tariffs, would have starker implications than
many studies suggest. To illustrate this point, a Computable General
Equilibrium (CGE) model of the French economy is used, highlighting
agricultural and food sectors. The study analyses the consequences for the
French economy of a complete liberalization scenario in the European
sector of cereals.
Journal: Applied Economics
Pages: 1527-1539
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500414609
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500414609
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1527-1539
Template-Type: ReDIF-Article 1.0
Author-Name: Yongil Jeon
Author-X-Name-First: Yongil
Author-X-Name-Last: Jeon
Author-Name: Ishak Haji Omar
Author-X-Name-First: Ishak Haji
Author-X-Name-Last: Omar
Author-Name: K. Kuperan
Author-X-Name-First: K.
Author-X-Name-Last: Kuperan
Author-Name: Dale Squires
Author-X-Name-First: Dale
Author-X-Name-Last: Squires
Author-Name: Indah Susilowati
Author-X-Name-First: Indah
Author-X-Name-Last: Susilowati
Title: Developing country fisheries and technical efficiency: the Java Sea purse seine fishery
Abstract:
The analysis of technical efficiency in developing country agriculture is
well established but has been overlooked for developing country commercial
marine fisheries. Policies raising technical efficiency in agriculture are
viewed as uniformly positive but are a mixed blessing in fisheries due to
the open-access property right and common-pool resource. This study
explores this contradiction and policies aimed to promote sustainable
development and management of renewable common pool resources through a
case study of the Java Sea purse seine fishery. Season of the year rather
than fisher or vessel characteristics primarily determines technical
efficiency. The results are contrasted with developing country agriculture
and conclusions drawn for fisheries development strategies.
Journal: Applied Economics
Pages: 1541-1552
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500400525
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400525
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1541-1552
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Roos
Author-X-Name-First: Michael
Author-X-Name-Last: Roos
Title: Regional price levels in Germany
Abstract:
Cross-sectional evidence on price levels is scarce for all countries.
However, several studies suggest that there might exist considerable
differences in price levels within countries, which has obvious welfare
implications. A sample of price levels in 50 German cities in 1993 is used
to analyse the determinants of inter-city price level differentials. The
most important explanatory variables for price level differentials are
population size and density and the average wage level. Using this
information, the price levels are predicted in all 440 German districts
and aggregated to the state level. At the state level convergence of the
price levels to a common mean is found, but at a very low speed. The
estimated half-life is about 19 years.
Journal: Applied Economics
Pages: 1553-1566
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500407207
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500407207
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1553-1566
Template-Type: ReDIF-Article 1.0
Author-Name: S. Selvanathan
Author-X-Name-First: S.
Author-X-Name-Last: Selvanathan
Author-Name: E. A. Selvanathan
Author-X-Name-First: E. A.
Author-X-Name-Last: Selvanathan
Title: Consumption patterns of food, tobacco and beverages: a cross-country analysis
Abstract:
This study considers the consumption patterns of food, tobacco, soft
drinks, and alcohol in 43 developed and developing countries. Such an
analysis is important for policy issues associated with tobacco, alcohol,
and soft drinks. The results show that consumers in the developing
countries spend a much higher proportion of their income on food than
consumers in developed countries. The proportion of expenditure allocated
to the other three commodities, tobacco, alcohol, and soft drinks, are
similar in the two groups of countries. On average, people around the
world allocate about one quarter of their income on food, 2.6% on tobacco,
3.2% on alcohol and 1.2% on soft drinks. The income elasticity estimates
reveal that food is a necessity in most countries, while tobacco and
alcohol are necessities in most of the developed countries and luxuries in
a majority of developing countries. Soft drinks are a luxury in a majority
of the developing as well as the developed countries. The own-price
elasticities show that demand for all four commodities is price inelastic
in all countries.
Journal: Applied Economics
Pages: 1567-1584
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392664
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392664
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1567-1584
Template-Type: ReDIF-Article 1.0
Author-Name: Daiki Maki
Author-X-Name-First: Daiki
Author-X-Name-Last: Maki
Author-Name: Shin-ichi Kitasaka
Author-X-Name-First: Shin-ichi
Author-X-Name-Last: Kitasaka
Title: The equilibrium relationship among money, income, prices, and interest rates: evidence from a threshold cointegration test
Abstract:
The long-run equilibrium relationship among money, income, prices, and
interest rates in Japan is investigated by the threshold cointegration
test, which allows for asymmetric adjustment, introduced by Enders and
Siklos (2001). The threshold cointegration approach provides clear
evidence of the cointegration relationship characterized by asymmetric
adjustment. By allowing for asymmetric adjustment, results are obtained
showing the stability of the money demand function, similar to Lucas
(1988), who pointed out that the money demand function is stable if unit
income elasticity is imposed. In particular, the estimated results show
that the adjustment process toward equilibrium is highly persistent above
an appropriately estimated threshold, whereas the adjustment process
toward equilibrium quickly converges below it. This finding indicates that
deviations from equilibrium resulting from increases in money or decreases
in income and prices are highly persistent.
Journal: Applied Economics
Pages: 1585-1592
Issue: 13
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600597709
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600597709
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1585-1592
Template-Type: ReDIF-Article 1.0
Author-Name: Darold Barnum
Author-X-Name-First: Darold
Author-X-Name-Last: Barnum
Author-Name: John Gleason
Author-X-Name-First: John
Author-X-Name-Last: Gleason
Title: Biases in technical efficiency scores caused by intra-input aggregation: mathematical analysis and a DEA application using simulated data
Abstract:
In Data Envelopment Analysis (DEA) applications involving multiple inputs
and outputs, inputs are aggregated into the total amounts of each type of
input. For example, if input types 'labour' and 'capital' are used to
produce multiple outputs, the total amount of labour used to produce all
outputs is treated as one aggregated input and the total amount of capital
as another. Resources are not disaggregated into input variables measuring
the amount of labour used to produce the first output, the amount of
labour used to produce the second output, the amount of labour used to
produce the third output and so on, for both labour and capital. It is
shown that such intra-input aggregation causes downward bias in reported
technical efficiency scores, with variations in bias unrelated to true
technical efficiency. Therefore, with few exceptions, any technical
efficiency comparisons among DMUs are invalid. The presence of intra-input
aggregation bias is demonstrated mathematically, simulation is used to
exhibit its severity, and the exceptions that permit intra-input
aggregation without causing bias are identified. It is concluded that, for
multiple-input, multiple-output DEA applications, inputs must be
disaggregated into the amounts used to produce each output in order to
validly report technical efficiency, unless one of the exceptions is
present.
Journal: Applied Economics
Pages: 1593-1603
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500405714
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405714
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1593-1603
Template-Type: ReDIF-Article 1.0
Author-Name: Randall Kesselring
Author-X-Name-First: Randall
Author-X-Name-Last: Kesselring
Author-Name: Dale Bremmer
Author-X-Name-First: Dale
Author-X-Name-Last: Bremmer
Title: Female income and the divorce decision: evidence from micro data
Abstract:
Escalating divorce rates during the 1960s and 1970s led to large numbers
of academic investigations into the causes of divorce. Most of these
studies concentrated on a significant increase in female income that
resulted from rising female labour force participation rates. The
difficulty with quantifying these arguments is that it is possible to
observe the income of married females or it is possible to observe the
income of divorced females, but it is not possible to observe both
outcomes, simultaneously. This research attempts to resolve these
difficulties by using sample selection techniques to correct for possible
bias from simple observation of the income of married and divorced
females.
Journal: Applied Economics
Pages: 1605-1616
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426934
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426934
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1605-1616
Template-Type: ReDIF-Article 1.0
Author-Name: J. Lindquist
Author-X-Name-First: J.
Author-X-Name-Last: Lindquist
Author-Name: Roger Vilhelmsson
Author-X-Name-First: Roger
Author-X-Name-Last: Vilhelmsson
Title: Is the Swedish central government a wage leader?
Abstract:
Is the Swedish central government a wage leader? This question is studied
empirically in a vector error-correction model using a unique, high
quality data set. It is first shown that salaries of white-collar workers
in the private sector and central government are cointegrated. It is then
found that private sector salaries are weakly exogenous to the system of
equations. This means that the private sector is the wage leader in the
long-run model. It is also found that changes in central government
salaries do not Granger cause changes in private sector salaries.
Together, these findings clearly demonstrate that the central government
is not placing undue pressure on salaries in the private sector. The
central government is not acting as a wage leader.
Journal: Applied Economics
Pages: 1617-1625
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500407124
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500407124
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1617-1625
Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Dutta
Author-X-Name-First: Dilip
Author-X-Name-Last: Dutta
Author-Name: Ihab Magableh
Author-X-Name-First: Ihab
Author-X-Name-Last: Magableh
Title: A socio-economic study of the borrowing process: the case of microentrepreneurs in Jordan
Abstract:
This paper investigates the socio-economic determinants of four stages of
borrowing process of the Jordanian microfinance market. The equations and
functions corresponding to the stages of the borrowing process are
estimated using a sample of 474 microentrepreneurs. The main results are
as follow: variables that reflect the repayment ability are the main
determinants of credit rationing in the microfinance market; religious
beliefs, social responsibilities, availability of local microfinance
provides, application costs, level of knowledge about microfinance
providers significantly affect the borrowing process of
microentrepreneurs. Credit rationing is found to be a problem for some
applicants, but not for the majority.
Journal: Applied Economics
Pages: 1627-1640
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427148
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427148
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1627-1640
Template-Type: ReDIF-Article 1.0
Author-Name: Melvin Borland
Author-X-Name-First: Melvin
Author-X-Name-Last: Borland
Author-Name: Roy Howsen
Author-X-Name-First: Roy
Author-X-Name-Last: Howsen
Author-Name: Michelle Trawick
Author-X-Name-First: Michelle
Author-X-Name-Last: Trawick
Title: Intra-school competition and student achievement
Abstract:
Within the economics of education literature, numerous studies have
investigated the relationship between educational market competition and
educational achievement. Educational market competition has been defined
as either the availability of vouchers within a community or the number of
schools or school districts within the relevant market structure. While
these studies have shown that increases in inter-district competition
result in increased student achievement, no studies, to our knowledge,
have yet investigated the effect of intra-school competition on student
achievement. Within this study, a measure of intra-school competition is
developed and the findings indicate that increased intra-school
competition leads to increased student achievement.
Journal: Applied Economics
Pages: 1641-1647
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426991
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426991
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1641-1647
Template-Type: ReDIF-Article 1.0
Author-Name: David Laband
Author-X-Name-First: David
Author-X-Name-Last: Laband
Author-Name: Robert Tollison
Author-X-Name-First: Robert
Author-X-Name-Last: Tollison
Title: Alphabetized coauthorship
Abstract:
It is found that alphabetized coauthored papers with two authors are more
highly cited than non-alphabetized coauthored papers in both economics and
agricultural economics. Alphabetized coauthored papers with more than two
authors are not cited more, suggesting an optimal team size of two,
ceteris paribus. We speculate that the preponderance of non-alphabetized
papers in agricultural economics, as compared to economics, is due in some
part to the differential importance of nonmarket-based criteria to
evaluate research in this area as opposed to economics departments.
Journal: Applied Economics
Pages: 1649-1653
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427007
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427007
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1649-1653
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu
Author-X-Name-First: Chun-Chu
Author-X-Name-Last: Liu
Title: A computable general equilibrium model of the southern region of Taiwan: the impact of the Tainan science-based industrial park
Abstract:
The primary modelling tools used to analyse regional economic issues
include econometric forecasting models, fixed price input-output (I-O)
multi-sector models, social accounting matrix (SAM) and computable general
equilibrium (CGE) models. CGE models combine the advantages of
econometric, I-O models and SAM, strengthening the theoretical basis of
the modelling effort and thus enabling more precise policy analysis.
Current CGE literature includes models used to analyse international
trade, tax reform, energy and environment issues. However, application of
this technique on a regional scale is rare in the scientific literature.
In this paper, a small regional computable general equilibrium model is
constructed and applied to analyse the economic impact of constructing
Tainan science-based industrial park (TSBIP) locating in southern Taiwan.
The research results provide a valuable reference for decision-makers in
formulating industrial and regional policies, as well as helping business
managers with strategic planning.
Journal: Applied Economics
Pages: 1655-1661
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426918
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426918
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1655-1661
Template-Type: ReDIF-Article 1.0
Author-Name: Junmin Wan
Author-X-Name-First: Junmin
Author-X-Name-Last: Wan
Title: Cigarette tax revenues and tobacco control in Japan
Abstract:
The hypotheses of non-addiction, myopia and rational addiction are tested
using annual, quarterly and monthly data. Changes in the prices of
Japanese cigarettes can be viewed as exogenous from the point of view of
consumer behaviour, because the Japanese government controls cigarette
prices. The empirical results of this paper support the addiction
hypothesis. The short-run and long-run price elasticities range from
-0.338 to -0.421, and from -0.679 to -0.686, respectively; thus, increases
in tax revenues in the long run are likely to be smaller than those in the
short run. As a result, tax increases would be an effective means of
curbing smoking and reducing its social cost. Furthermore, the debt
compensation programmes for the Japan Railway and the National Forestry
will not go according to plan, unless revenues are increased in the
future.
Journal: Applied Economics
Pages: 1663-1675
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426900
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426900
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1663-1675
Template-Type: ReDIF-Article 1.0
Author-Name: Mario Mazzocchi
Author-X-Name-First: Mario
Author-X-Name-Last: Mazzocchi
Author-Name: Davide Delle Monache
Author-X-Name-First: Davide Delle
Author-X-Name-Last: Monache
Author-Name: Alexandra Lobb
Author-X-Name-First: Alexandra
Author-X-Name-Last: Lobb
Title: A structural time series approach to modelling multiple and resurgent meat scares in Italy
Abstract:
This paper exploits a structural time series approach to model the time
pattern of multiple and resurgent food scares and their direct and
cross-product impacts on consumer response. A structural time series
Almost Ideal Demand System (STS-AIDS) is embedded in a vector error
correction framework to allow for dynamic effects (VEC-STS-AIDS). Italian
aggregate household data on meat demand is used to assess the time-varying
impact of a resurgent BSE crisis (1996 and 2000) and the 1999 Dioxin
crisis. The VEC-STS-AIDS model monitors the short-run impacts and performs
satisfactorily in terms of residuals diagnostics, overcoming the major
problems encountered by the customary vector error correction approach.
Journal: Applied Economics
Pages: 1677-1688
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500405862
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500405862
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1677-1688
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Huber
Author-X-Name-First: Peter
Author-X-Name-Last: Huber
Author-Name: Kristin Smeral
Author-X-Name-First: Kristin
Author-X-Name-Last: Smeral
Title: Measuring worker flows
Abstract:
The study explores differences between two measurement concepts of worker
flows widely used in the literature referred to as the turnover and
reallocation concepts. It is found that measuring worker flows by the
turnover concept leads to substantially (about 5% of total employment)
higher worker flow estimates and slightly increases age, size and industry
group effects on firm level worker flows as well as differences between
growing and declining firms relative to the reallocation concept.
Journal: Applied Economics
Pages: 1689-1695
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500392482
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500392482
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1689-1695
Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim
Author-X-Name-First: Sangho
Author-X-Name-Last: Kim
Author-Name: Young Hoon Lee
Author-X-Name-First: Young Hoon
Author-X-Name-Last: Lee
Title: The productivity debate of East Asia revisited: a stochastic frontier approach
Abstract:
This paper applies a stochastic frontier production model to the data
from Penn World Table's 49 countries over the period 1965 to 1990, to
decompose total factor productivity growth into technical change and
technical efficiency change. Empirical results show East Asian countries
led the world in productivity growth, mainly because their technical
efficiency gain was so much faster than that of other countries. East
Asian countries also registered rapid technical change, which was
comparable to that of the G6 countries after the late 1980s. The results
provide evidence that negate the hypothesis that East Asian growth was
mostly input-driven and unsustainable.
Journal: Applied Economics
Pages: 1697-1706
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426884
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426884
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1697-1706
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Pickhardt
Author-X-Name-First: Michael
Author-X-Name-Last: Pickhardt
Author-Name: Jordi Sarda Pons
Author-X-Name-First: Jordi Sarda
Author-X-Name-Last: Pons
Title: Size and scope of the underground economy in Germany
Abstract:
The objective of this paper is to improve estimations of the size and
scope of the underground economy by introducing a new approach that
combines the advantages of the two most commonly used approaches, i.e.
currency demand and multiple indicators, multiple causes (MIMIC). The new
approach is applied to Germany. Among other things, it is shown that the
approach yields improved estimation results. Some policy perspectives are
discussed in the concluding section.
Journal: Applied Economics
Pages: 1707-1713
Issue: 14
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426868
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426868
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Handle: RePEc:taf:applec:v:38:y:2006:i:14:p:1707-1713
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Voon
Author-X-Name-First: Jan
Author-X-Name-Last: Voon
Author-Name: Li Guangzhong
Author-X-Name-First: Li
Author-X-Name-Last: Guangzhong
Author-Name: Jimmy Ran
Author-X-Name-First: Jimmy
Author-X-Name-Last: Ran
Title: Does China really lose from RMB revaluation? Evidence from some export industries
Abstract:
This study attempts to examine the impacts of Real Exchange Rate (RER)
misalignment on China's export performance. Using the SUR methodology
coupled with disaggregate panel export data, it shows that China's export
sector may not necessarily lose from the Central Government's decision to
revalue its RMB against the US dollar because the negative impact of the
RER appreciation on Chinese exports may be diluted by the positive impacts
attributing to a reduction in the RER misalignment.
Journal: Applied Economics
Pages: 1715-1723
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427304
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427304
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1715-1723
Template-Type: ReDIF-Article 1.0
Author-Name: John Whitehead
Author-X-Name-First: John
Author-X-Name-Last: Whitehead
Title: A comparison of contingent valuation method and random utility model estimates of the value of avoiding reductions in king mackerel bag limits
Abstract:
This paper estimates the value of king mackerel bag limit changes with
both stated and revealed preference methods. The 1997 Marine Recreational
Fishery Statistical Survey allows estimation of the value of avoiding bag
limit reductions with the random utility model and the contingent
valuation method. Using the contingent valuation method, the willingness
to pay to avoid a one fish reduction in the bag limit is $2.45 per year.
Using the random utility model, the willingness to pay to avoid a one fish
reduction in the bag limit is $2.24 per trip and $7.71 for a two-month
time period. Considering several methodological issues, the difference in
willingness to pay between the stated and revealed preference methods is
in the expected direction.
Journal: Applied Economics
Pages: 1725-1735
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427130
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427130
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1725-1735
Template-Type: ReDIF-Article 1.0
Author-Name: Santiago Lago-Penas
Author-X-Name-First: Santiago
Author-X-Name-Last: Lago-Penas
Title: Capital grants and regional public investment in Spain: fungibility of aid or crowding-in effect?
Abstract:
The aim of capital grants to subcentral governments is to increase their
investment. However, recipients may try to allocate additional resources
to cut saving or deficit, generating a crowding-out effect on
self-financed investment. Using data from the Spanish Autonomous
Communities during the period 1984 to 1999, the effect of capital
transfers on regional public investment, saving and deficit are estimated.
Econometric results demonstrate that capital grants have no relevance when
explaining the dynamics of saving. However, in deficit regressions they
are shown to be both significant and negative. Both results lead us to a
partial long-run crowding-out effect of grants on self-financed
investment.
Journal: Applied Economics
Pages: 1737-1747
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427163
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427163
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1737-1747
Template-Type: ReDIF-Article 1.0
Author-Name: Hipolito Simon
Author-X-Name-First: Hipolito
Author-X-Name-Last: Simon
Author-Name: Raul Ramos
Author-X-Name-First: Raul
Author-X-Name-Last: Ramos
Author-Name: Esteban Sanroma
Author-X-Name-First: Esteban
Author-X-Name-Last: Sanroma
Title: Collective bargaining and regional wage differences in Spain: an empirical analysis
Abstract:
This article analyses the importance of labour market institutions and,
in particular, collective wage bargaining in shaping regional wage
differences in the Spanish labour market. Using microdata from the Spanish
Structure of Earnings Survey, our results reveal that there are
significant inter-regional wage differences for similarly skilled workers.
These differences are present throughout the whole wage structure and can
be explained by both competitive and non-competitive factors, such as
insufficient competition in product markets. In this context,
industry-level collective bargaining plays a major role in accounting for
regional wage differences, a role that in the Spanish case is enhanced due
to its unusual regional dimension.
Journal: Applied Economics
Pages: 1749-1760
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427155
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427155
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1749-1760
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Andrikopoulos
Author-X-Name-First: Andreas
Author-X-Name-Last: Andrikopoulos
Author-Name: Ioannis Loizides
Author-X-Name-First: Ioannis
Author-X-Name-Last: Loizides
Author-Name: Kyprianos Prodromidis
Author-X-Name-First: Kyprianos
Author-X-Name-Last: Prodromidis
Title: Taxation and political business cycles in EU economies
Abstract:
This paper examines whether incumbent national governments of 11 member
states of the European Union manipulated the tax policy instruments at
their disposal in order to create national political business cycles,
opportunistic or partisan. The empirical evidence, based on data
concerning the 1965 to 1997 period, does not support this hypothesis.
Rather, it appears that governments have pursued stabilization policies.
Journal: Applied Economics
Pages: 1761-1774
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427106
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427106
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1761-1774
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Funk
Author-X-Name-First: Mark
Author-X-Name-Last: Funk
Title: Business cycles and research investment
Abstract:
This paper examines the impact of uncertainty and the business cycle on
US high-tech manufacturing firms' research investment. Although the
reliance on internal financing suggests firms will consider uncertainty
and the business cycle when determining their research budget, little is
known about how the business cycle and uncertainty influence research
investment. Using firm-level data on sales, cash flow, and industry-level
indicators of the business cycle, this paper finds that the firm's
response to the business depends on the firm's industry and the industry's
current location in the business cycle. The data also shows that the
business cycle also depresses the firm's reaction to changes in sales and
cash flow. Uncertainty clearly reduces research efforts, although
non-linearly.
Journal: Applied Economics
Pages: 1775-1782
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427098
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427098
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1775-1782
Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Mourre
Author-X-Name-First: Gilles
Author-X-Name-Last: Mourre
Title: Did the pattern of aggregate employment growth change in the euro area in the late 1990s?
Abstract:
This paper examines whether the pattern of growth in euro area employment
seen in the period 1997 to 2001 differs from that recorded in the past and
what could be the reasons. First, a standard employment equation is
estimated for the euro area as a whole. This shows that the lagged impact
of both output growth and real labour cost growth, together with a
productivity trend and employment 'inertia', can account for most of the
employment developments between 1970 and the early 1990s. Conversely,
these traditional determinants can only explain part of the employment
development seen in recent years (1997 to 2001). Second, the paper shows
sound evidence of a structural break in the aggregate employment equation
in the late 1990s. Third, the paper provides some tentative explanations
for this change in aggregate employment developments, using in particular
country panels of institutional variables and of active labour market
policies but also cross-sectional analyses. Among the relevant factors
likely to have contributed to rising aggregate employment in recent years
are changes in the sectoral composition of euro area employment, the
strong development of part-time jobs, lower labour tax rates and possibly
less stringent employment protection legislation and greater subsidies to
private employment.
Journal: Applied Economics
Pages: 1783-1807
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427072
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427072
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1783-1807
Template-Type: ReDIF-Article 1.0
Author-Name: O. Mikhail
Author-X-Name-First: O.
Author-X-Name-Last: Mikhail
Author-Name: C. J. Eberwein
Author-X-Name-First: C. J.
Author-X-Name-Last: Eberwein
Author-Name: J. Handa
Author-X-Name-First: J.
Author-X-Name-Last: Handa
Title: Estimating persistence in Canadian unemployment: evidence from a Bayesian ARFIMA
Abstract:
The degree of persistence in aggregate Canadian unemployment is estimated
within a Bayesian ARFIMA class of models. The results conclude that
unemployment exhibits persistence in the short and intermediate run. The
evidence of persistence is stronger than previously reported by Koustas
and Veloce (1996). This persistence cast a vital implication regarding
disinflation policies, Based on the unemployment rate, these policies will
prove very costly in terms of lost output and - if implemented - they
considerably lengthen recessions.
Journal: Applied Economics
Pages: 1809-1819
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427023
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427023
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1809-1819
Template-Type: ReDIF-Article 1.0
Author-Name: Maxime de Marin de Montmarin
Author-X-Name-First: Maxime de Marin
Author-X-Name-Last: de Montmarin
Title: A result similar to the Odlyzko's 'Paris Metro Pricing'
Abstract:
The two-stage competition is investigated in which two Internet Service
Providers (ISP) choose sequentially their capacities and then their prices
while facing a flow of new customers who decide to belong to one ISP or
the other on the basis of a comparison of access prices and of expected
congestion rates. At the equilibrium of the game a vertical
differentiation between the Internet Service Providers endogenously
emerges: the firm which provides the larger network has the lowest rate of
congestion and the highest access price. The ISP providing the smallest
network (thus the most congested) earns the larger profit. It will be
noticed that the spontaneous functioning of oligopolistic competition
produces a result similar to the Odlyzko's 'Paris Metro Pricing': at the
equilibrium the two competitors propose different prices and rates of
congestion, the most expensive one being also the least congested.
Journal: Applied Economics
Pages: 1821-1824
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426967
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426967
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1821-1824
Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Nowak-Lehnmann Felicitas
Author-X-Name-First: Nowak-Lehnmann
Author-X-Name-Last: Felicitas
Title: What does export diversification do for growth? An econometric analysis
Abstract:
It is frequently suggested that export diversification contributes to an
acceleration of growth in developing countries. Horizontal export
diversification into completely new export sectors may generate positive
externalities on the rest of the economy as export oriented sectors gain
from dynamic learning activities due to contacts with foreign purchasers
and exposure to international competition. Vertical diversification out of
primary into manufactured exports is also associated with growth since
primary export sectors generally do not exhibit strong spillovers. Yet
there have been remarkably few empirical investigations into the link
between export diversification and growth. This paper attempts to examine
the hypothesis that export diversification is linked to economic growth
via externalities of learning-by-doing and learning-by-exporting fostered
by competition in world markets. The diversification-led growth hypothesis
is tested by estimating an augmented Cobb-Douglas production function on
the basis of annual time series data from Chile. Based on the theory of
cointegration three types of statistical methodologies are used: the
Johansen trace test, a multivariate error-correction model and the dynamic
OLS procedure. Given structural changes in the Chilean economy, time
series techniques considering structural breaks are applied. The
estimation results suggest that export diversification plays an important
role in economic growth.
Journal: Applied Economics
Pages: 1825-1838
Issue: 15
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426983
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426983
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Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1825-1838
Template-Type: ReDIF-Article 1.0
Author-Name: Ken Yamada
Author-X-Name-First: Ken
Author-X-Name-Last: Yamada
Title: Intra-family transfers in Japan: intergenerational co-residence, distance, and contact
Abstract:
Classified broadly, two motives for intra-family transfers exist:
altruism and selfishness. This paper examines two selfish hypotheses - the
exchange motive (strategic bequest motive) and the demonstration effect -
using a new Japanese microdata set. Analysis of the determinants of
intergenerational co-residence, distance between residences, and frequency
of contact yields considerable support for the exchange motive but no
support for the demonstration effect. The findings are consistent with the
exchange motive after distinguishing it from mutual altruism.
Journal: Applied Economics
Pages: 1839-1861
Issue: 16
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600825746
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600825746
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Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1839-1861
Template-Type: ReDIF-Article 1.0
Author-Name: D. Doorn
Author-X-Name-First: D.
Author-X-Name-Last: Doorn
Title: Consequences of Hodrick-Prescott filtering for parameter estimation in a structural model of inventory behaviour
Abstract:
Much work in macroeconomics relies on detrending a time series prior to
analysis. A popular method of detrending has been the Hodrick-Prescott
(HP) filter. This filter has been widely applied in the Real Business
Cycle literature to isolate the behaviour of economic variables at
business cycle frequencies and to look at comovements between series over
the business cycle. Prior work has shown that the use of this filter can
have serious consequences for such analysis, such as inducing spurious
correlations, and that a researcher should proceed with caution when
applying the filter. Another use of HP filtering has been to achieve
stationarity prior to estimation of structural econometric models. Little
work has been done concerning the possible effects this method of
detrending may have on parameter estimation from such models. Given the
problems with the filter noted in the literature, it is likely these
effects may be of some consequence to estimation results. Using a common
model of inventory behaviour, a simulation study is conducted to assess
the impact of using the HP filter for detrending prior to estimation. A
comparison will be made to other methods of handling trend to gauge
relative performance.
Journal: Applied Economics
Pages: 1863-1875
Issue: 16
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427254
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427254
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Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1863-1875
Template-Type: ReDIF-Article 1.0
Author-Name: Linda Nøstbakken
Author-X-Name-First: Linda
Author-X-Name-Last: Nøstbakken
Title: Cost structure and capacity in the Norwegian pelagic fisheries
Abstract:
The parameters of the short-run cost function are estimated for three
vessel types taking part in the Norwegian pelagic fisheries: purse seine
vessels, trawlers, and coastal vessels. The generalized translog
functional form is used. Estimates of returns to scale are calculated and
the results indicate that there are substantial economies of scale in all
vessel classes. It is further investigated whether excess capacity varies
with vessel size and age. The analysis suggests increased quotas per
vessel to avoid rent dissipation. With the total allowable catch given,
the number of participating vessels must be reduced.
Journal: Applied Economics
Pages: 1877-1887
Issue: 16
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427197
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427197
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Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1877-1887
Template-Type: ReDIF-Article 1.0
Author-Name: Donny Tang
Author-X-Name-First: Donny
Author-X-Name-Last: Tang
Title: The effect of financial development on economic growth: evidence from the APEC countries, 1981-2000
Abstract:
Using the modified growth model, this study examines whether financial
development would facilitate economic growth among the Asia-Pacific
Economic Cooperation (APEC) countries from 1981 to 2000. It focuses on the
effects of three aspects of financial development on growth: stock market,
banking sector and capital flow. To control for the country-specific
effect, the model is further estimated for the developed and developing
member countries. Results suggest that among the three financial sectors,
only the stock market development shows strong growth-enhancing effect,
especially among the developed member countries. This positive
relationship remains very robust even after controlling for the
simultaneity bias. Thus, there is no evidence to suggest that the level of
financial infrastructure development does affect the overall
finance-growth relationship observed in this study.
Journal: Applied Economics
Pages: 1889-1904
Issue: 16
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427239
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427239
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Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1889-1904
Template-Type: ReDIF-Article 1.0
Author-Name: Bang Nam Jeon
Author-X-Name-First: Bang Nam
Author-X-Name-Last: Jeon
Author-Name: Kyeong Seok Han
Author-X-Name-First: Kyeong Seok
Author-X-Name-Last: Han
Author-Name: Myung Jin Lee
Author-X-Name-First: Myung Jin
Author-X-Name-Last: Lee
Title: Determining factors for the adoption of e-business: the case of SMEs in Korea
Abstract:
This study investigates the determining factors of the successful
adoption of e-business by small and medium enterprises (SMEs) in Korea
using survey data. After the major determining factors were identified
from the innovation adoption literature and were extracted by applying the
principal component analysis to the survey data and by adding the
country-specific characteristics of Korea, we conducted empirical analyses
to determine the critical success factors for the adoption of e-business
by Korean firms. The empirical results which are based on t-tests of the
differences between adopters and non-adopters, the linear probability
model, and the logit model, all suggest that the important determinants of
the successful adoption of e-business by SMEs in Korea are: the CEO's
knowledge of information technology (IT)/e-business, relative advantages
and benefits from implementing e-business, governmental support,
globalization strategy and the North Korean factor. Business size, the
cost of e-business adoption and competitive pressure of the industry do
not seem to play an important role in the adoption of e-business by Korean
SMEs. The policy implications of this study on promoting e-business
adoption by SMEs in emerging economies, such as Korea, are also discussed.
Journal: Applied Economics
Pages: 1905-1916
Issue: 16
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427262
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427262
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Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1905-1916
Template-Type: ReDIF-Article 1.0
Author-Name: Bahram Adrangi
Author-X-Name-First: Bahram
Author-X-Name-Last: Adrangi
Author-Name: A. Chatrath
Author-X-Name-First: A.
Author-X-Name-Last: Chatrath
Author-Name: Frank Song
Author-X-Name-First: Frank
Author-X-Name-Last: Song
Author-Name: Ferenc Szidarovszky
Author-X-Name-First: Ferenc
Author-X-Name-Last: Szidarovszky
Title: Petroleum spreads and the term structure of futures prices
Abstract:
We employ the term structure of gasoline and heating oil prices, proxied
by convenience yields, to explain the variation in the spread between the
prices of gasoline and crude oil and the prices of heating oil and crude
oil. We demonstrate that the marginal convenience yields in the gasoline
and heating oil markets explained much of the variation in the spreads
between 1986 and 1999. The evidence indicates the importance of a
disaggregated treatment of the term structure of prices: the convenience
yield is found to explain a substantially higher amount of the variation
in the spread when it is decomposed by maturity, even after controls for
seasonality and inventory levels are implemented. These findings support
the notion that the futures term structure contains information beyond
what can be garnered via obvious or easily available proxies of current
supply and demand. The findings are also supported in an alternate
specification that tests for the origins of information spillover
(leadership) between the commodities: it is demonstrated that decomposed
convenience yields explain a substantial portion of the volatility
spillover from the gasoline and heating oil markets to the crude market.
Journal: Applied Economics
Pages: 1917-1929
Issue: 16
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427189
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427189
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Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1917-1929
Template-Type: ReDIF-Article 1.0
Author-Name: M. Angeles Caraballo
Author-X-Name-First: M. Angeles
Author-X-Name-Last: Caraballo
Author-Name: Carlos Dabus
Author-X-Name-First: Carlos
Author-X-Name-Last: Dabus
Author-Name: Carlos Usabiaga
Author-X-Name-First: Carlos
Author-X-Name-Last: Usabiaga
Title: Relative prices and inflation: new evidence from different inflationary contexts
Abstract:
This paper analyses the relationship between inflation and relative price
variability, in the direction of the latter, in two countries with very
different inflationary experiences: Argentina and Spain. To address this
objective, using disaggregated price indexes (the Wholesale Price Index
for Argentina and the Consumer Price Index for Spain), we delimitate
different inflationary regimes and compute a set of regressions for each
country. Our results suggest evidence in favour of the non-neutrality of
inflation (mostly in hyperinflation periods) and do not support either the
menu costs or the signal extraction approaches. We also detect significant
structural changes in the relationship depending on the inflationary
regime.
Journal: Applied Economics
Pages: 1931-1944
Issue: 16
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427171
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427171
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Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1931-1944
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Gravel
Author-X-Name-First: Nicolas
Author-X-Name-Last: Gravel
Author-Name: Alessandra Michelangeli
Author-X-Name-First: Alessandra
Author-X-Name-Last: Michelangeli
Author-Name: Alain Trannoy
Author-X-Name-First: Alain
Author-X-Name-Last: Trannoy
Title: Measuring the social value of local public goods: an empirical analysis within Paris metropolitan area
Abstract:
A non-linear hedonic model is used to estimate the implicit marginal
prices of 17 local public goods in a Paris suburban area on an original
data set of some 8200 housing units. The results reveal a robust effect of
local public school quality (measured both by the fraction of junior high
school students that are at least two years behind grade level and the
student/teacher ratio) on house prices. It is observed that housing
owners' marginal willingness to pay for reducing commuting time is roughly
similar for public transportation than for car transportation. Another
noticeable result is the complete capitalization of local taxes at a
discount rate of 3.5%. An illustration of the potential usefulness of the
results for Cost-Benefit analysis is also provided.
Journal: Applied Economics
Pages: 1945-1961
Issue: 16
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427213
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427213
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Handle: RePEc:taf:applec:v:38:y:2006:i:16:p:1945-1961
Template-Type: ReDIF-Article 1.0
Author-Name: Radislav Semenov
Author-X-Name-First: Radislav
Author-X-Name-Last: Semenov
Title: Financial systems, financing constraints and investment: empirical analysis of OECD countries
Abstract:
This paper investigates the influence of cash flow on corporate
investment in 11 OECD countries. We find that the sensitivity of
investment levels to internally available funds differs significantly
across countries, and is lower in countries with predominantly close
bank-firm relationships than in countries with predominantly arm's-length
bank-firm relationships. At the same time, we find no relationship of the
levels of financial constraints to indicators of overall financial
development. Our results are consistent with the view that information and
incentive problems in the capital market have important effects on
corporate investment, and that close bank-firm relationships can reduce
these problems and thus improve the access of firms to external finance.
Journal: Applied Economics
Pages: 1963-1974
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427122
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427122
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:1963-1974
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Dead man walking: an empirical reassessment of the deterrent effect of capital punishment using the bounds testing approach to cointegration
Abstract:
This paper empirically estimates a murder supply equation for the United
States from 1965 to 2001 within a cointegration and error correction
framework. Our findings suggest that any support for the deterrence
hypothesis is sensitive to the inclusion of variables for the effects of
guns and other crimes. In the long run we find that real income and the
conditional probability of receiving the death sentence are the main
factors explaining variations in the homicide rate. In the short run the
aggravated assault rate and robbery rate are the most important
determinants of the homicide rate.
Journal: Applied Economics
Pages: 1975-1989
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427288
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427288
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:1975-1989
Template-Type: ReDIF-Article 1.0
Author-Name: Harry Anthony Patrinos
Author-X-Name-First: Harry Anthony
Author-X-Name-Last: Patrinos
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Title: Economic volatility and returns to education in Venezuela: 1992-2002
Abstract:
Preliminary evidence suggests that the rates of return to education in
Venezuela have been declining since the 1970s. This study rigorously
estimates the returns to education in Venezuela for the period 1992 to
2002 and links them to earlier available estimates from the 1980s.
Consistent cross-sections from the Encuesta de Hogares por Muestro are
used to document falling returns to schooling and educational levels until
the mid-1990s, followed by increasing returns thereafter. Quantile
regression analysis is used to provide further insight into the within
skill group changes in returns over time.
Journal: Applied Economics
Pages: 1991-2005
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427338
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427338
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:1991-2005
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Morana
Author-X-Name-First: Claudio
Author-X-Name-Last: Morana
Title: The price stability oriented monetary policy of the ECB: an assessment
Abstract:
The definition of price stability adopted by the ECB has recently been
criticized in the literature, particularly for being unable to fully
anchor inflation expectations and creating a deflation risk. In the paper
empirical evidence is provided against these claims. Despite the
unfavourable macroeconomic conditions for the euro area since 2001,
monetary policy management has lead to the setting of the policy rate at
levels compatible with trend inflation (the long-run inflation forecast)
in the range 1-3%, and therefore without affecting negatively the
inflation outlook.
Journal: Applied Economics
Pages: 2007-2020
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427312
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427312
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2007-2020
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Belen Gracia Andia
Author-X-Name-First: Ana Belen Gracia
Author-X-Name-Last: Andia
Author-Name: Maria Dolores Gadea Rivas
Author-X-Name-First: Maria Dolores Gadea
Author-X-Name-Last: Rivas
Author-Name: Jose Maria Serrano Sanz
Author-X-Name-First: Jose Maria Serrano
Author-X-Name-Last: Sanz
Title: The effects of macroeconomic stability on foreign trade. An analysis for Spain, 1986-2000
Abstract:
Two main factors underlie the rebirth of interest in the study of the
influence of the real exchange rate on trade, the reduction of its
volatility and the current trend towards price stability. The objective of
this study is to analyse the effects of the process of nominal
convergence, required of the European member states for the fulfilment of
monetary integration, on foreign trade flows. The case of Spain, which is
especially interesting in this context, is studied for the period 1986 to
2000. The results of estimating the aggregate functions of the export and
import of goods shows how macroeconomic stability has altered the
behaviour of trade with respect to the two basic determinants - income and
prices - how it has caused a significant structural change in the real
exchange rate and, finally, how it has laid the explanatory bases for
transactions in the twenty-first century with the single currency - the
euro.
Journal: Applied Economics
Pages: 2021-2036
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427395
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427395
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2021-2036
Template-Type: ReDIF-Article 1.0
Author-Name: David Leece
Author-X-Name-First: David
Author-X-Name-Last: Leece
Title: Testing a theoretical model of mortgage demand on UK data
Abstract:
Mortgage demand is a poorly understood and under-researched aspect of the
financial behaviour of households. This paper tests empirically the basic
results of Brueckner's model of mortgage demand on UK mortgage market
data. The choice of mortgage instrument is used to identify impatient debt
maximizers and patient borrowers who borrow at intermediate levels. Thus
the research confirms the conditions under which households will use the
largest possible mortgage and the circumstances under which savings are
invested in the property. A unique contribution of the work is the
estimation of mortgage demand equations corrected for endogenous housing
demand, for a single housing finance system, where borrowers face
different opportunity costs of equity in their owner occupied property,
allowing a purer test of the theoretical model.
Journal: Applied Economics
Pages: 2037-2051
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500426959
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426959
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2037-2051
Template-Type: ReDIF-Article 1.0
Author-Name: Camille Logeay
Author-X-Name-First: Camille
Author-X-Name-Last: Logeay
Author-Name: Sven Schreiber
Author-X-Name-First: Sven
Author-X-Name-Last: Schreiber
Title: Testing the effectiveness of the French work-sharing reform: a forecasting approach
Abstract:
The macroeconomic impact of the French work-sharing reform of 2000 (a
reduction of standard working hours in combination with wage subsidies) is
analysed. Using a vector error correction model (VECM) for several labour
market variables, as well as inflation and output, out-of-sample forecasts
for 2000/2001 are produced. A comparison of these forecasts - which serve
as a benchmark simulation without structural shifts - to the realized
values (with shifts) suggests significant beneficial employment effects of
the policy mix. Other shifts were absent and thus cannot explain the
outcome. Output, productivity, hourly labour costs, and inflation are only
transitorily affected or not at all.
Journal: Applied Economics
Pages: 2053-2068
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427031
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427031
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2053-2068
Template-Type: ReDIF-Article 1.0
Author-Name: Shikuan Chen
Author-X-Name-First: Shikuan
Author-X-Name-Last: Chen
Author-Name: Ming-Jen Chang
Author-X-Name-First: Ming-Jen
Author-X-Name-Last: Chang
Title: Relative prices and expenditure switching effect
Abstract:
This study examines the impact of a monetary shock on a two-country,
asymmetrical size general equilibrium model. It is assumed that prices are
sticky in the producer's currency, and find that the expenditure switching
effect is not significant.
Journal: Applied Economics
Pages: 2069-2073
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600895707
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600895707
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2069-2073
Template-Type: ReDIF-Article 1.0
Author-Name: Evan Kraft
Author-X-Name-First: Evan
Author-X-Name-Last: Kraft
Author-Name: Richard Hofler
Author-X-Name-First: Richard
Author-X-Name-Last: Hofler
Author-Name: James Payne
Author-X-Name-First: James
Author-X-Name-Last: Payne
Title: Privatization, foreign bank entry and bank efficiency in Croatia: a Fourier-flexible function stochastic cost frontier analysis
Abstract:
Using bank balance sheet data for Croatia for 1994 to 2000, this study
estimates a Fourier-flexible frontier cost function. Specification tests
indicate that the stochastic frontier model with a Fourier-flexible form
with a truncated normal distribution of the inefficiency term allowing for
time varying cost efficiency is preferred. The results show that new
private and privatized banks, contrary to some expectations, are not the
most efficient banks through most of the period. Privatization also does
not seem to have an immediate effect on improved efficiency. However,
better cost efficiency is associated with a lower likelihood of failure,
suggesting that better risk management and better cost management are
signs of better management in general. Finally, foreign banks have
substantially better efficiency scores than all categories of domestic
banks.
Journal: Applied Economics
Pages: 2075-2088
Issue: 17
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427361
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Handle: RePEc:taf:applec:v:38:y:2006:i:17:p:2075-2088
Template-Type: ReDIF-Article 1.0
Author-Name: Linda Yueh
Author-X-Name-First: Linda
Author-X-Name-Last: Yueh
Title: Parental investment in children's human capital in urban China
Abstract:
The present study tests the extent of parental forgone consumption used
instead to invest in children's human capital by use of intrahousehold
resource allocation models. Using an unusual, comprehensive data set for
urban China, there is more spending on boys aged 13 to 15 but more on
girls aged 16 to 18, suggesting that standard human capital theories and
traditional perceptions of gender bias do not completely explain
educational expenditure decisions. The evidence from urban China is
consistent, though, with human capital models which consider parental
intertemporal preferences. Also, the findings suggest that the perceived
bias in favour of sons exists weakly in contemporary urban China.
Journal: Applied Economics
Pages: 2089-2111
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427353
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2089-2111
Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Verhaest
Author-X-Name-First: Dieter
Author-X-Name-Last: Verhaest
Author-Name: Eddy Omey
Author-X-Name-First: Eddy
Author-X-Name-Last: Omey
Title: Discriminating between alternative measures of over-education
Abstract:
Five over-education measures are evaluated empirically on the basis of
encompassing tests. The measures are based on job analysis (JA),
worker-assessment of the required level to do the job (WAd),
worker-assessment of the required level to get the job (WAg), the mean
educational level of realized matches (RMmn), and the modal level of
realized matches (RMml). Over- and under-education are linked to wages,
job satisfaction, mobility and training participation. For none of the
outcome variables, the JA model is encompassed by another model. Given the
risk on systematic errors, this is a sufficient condition to prefer a
carefully conducted JA to any other measure. The most reliable solution is
to use the JA measure as an instrument for the WAd measure.
Journal: Applied Economics
Pages: 2113-2120
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427387
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427387
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2113-2120
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandra Ferrari
Author-X-Name-First: Alessandra
Author-X-Name-Last: Ferrari
Title: The internal market and hospital efficiency: a stochastic distance function approach
Abstract:
The UK internal market was one of the first European attempts to
introduce a competitive mechanism in the provision of hospital services.
The assumption was that competition would have led hospitals to increase
efficiency in the use of their resources. The aim of this paper is to
analyse the effectiveness of this kind of reform by measuring the changes
in technical efficiency of a panel of 52 acute Scottish hospitals observed
from 1991/92 to 1996/97. The time period covers the whole duration of the
internal market and the sample contains a different mix of both trusts and
non-trusts, where the former embed the proper working of the reform. The
selected model is a stochastic output distance function that includes an
interaction dummy variable to allow for parameters to change over time.
The results show a structural break after which hospitals change not only
the way in which they provide their services, but also the kind of
services they provide, favouring the quicker treatment of patients on a
day basis. No significant improvement in technical efficiency is detected
instead over time, nor any significant difference in efficiency between
trusts and non-trusts.
Journal: Applied Economics
Pages: 2121-2130
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427437
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427437
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2121-2130
Template-Type: ReDIF-Article 1.0
Author-Name: Logan McLeod
Author-X-Name-First: Logan
Author-X-Name-Last: McLeod
Author-Name: Michael Veall
Author-X-Name-First: Michael
Author-X-Name-Last: Veall
Title: The dynamics of food insecurity and overall health: evidence from the Canadian National Population Health Survey
Abstract:
The paper explores whether the responses to household food insecurity
questions in cycles two and three of the Canadian National Population
Health Survey help explain the links between socioeconomic status and
health at the individual level. Short-term transitions in food insecurity
status are correlated with changes in health status. There is some
evidence for females but not for males that conditional on current health,
current household food insecurity can lead to lower future health status,
even in the short run. There is stronger evidence for both males and
females that conditional on current household food insecurity status,
lower current health status can lead to an increased probability of future
household food insecurity.
Journal: Applied Economics
Pages: 2131-2146
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427429
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427429
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2131-2146
Template-Type: ReDIF-Article 1.0
Author-Name: Mao-Wei Hung
Author-X-Name-First: Mao-Wei
Author-X-Name-Last: Hung
Author-Name: Hsiao-Yuan Yu
Author-X-Name-First: Hsiao-Yuan
Author-X-Name-Last: Yu
Title: A heterogeneous model of disposition effect
Abstract:
A portfolio choice model is provided to illustrate the disposition effect
under irrational belief in mean reversion assumption. Higher cognitive
reference, stronger irrational belief in mean reversion magnitude and less
risk aversion all strengthen the disposition effect in the model. The
equilibrium market interest rate is priced after the market clearing
condition is employed. The grater disposition effect reduces the capital
mobility from the stock market to the bond market and thus mitigates the
dropping of the market interest rate.
Journal: Applied Economics
Pages: 2147-2157
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427403
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427403
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2147-2157
Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo Leon
Author-X-Name-First: Carmelo
Author-X-Name-Last: Leon
Author-Name: Juan Hernandez
Author-X-Name-First: Juan
Author-X-Name-Last: Hernandez
Author-Name: Miguel Leon-Santana
Author-X-Name-First: Miguel
Author-X-Name-Last: Leon-Santana
Title: The effects of water temperature in aquaculture management
Abstract:
This study examines the impact of water temperature on the optimal
management of the ration size and fish weight in off-shore farm
aquaculture. A model for the expected returns of the farm is developed
which includes a fish growth function influenced by fish weight, the
ration size and water temperature. The output transportation cost has an
ambiguous effect on the harvesting size, but the impact of water
temperature is positive. These results explain empirical evidence in the
Canary Islands that unfavourable economic conditions could be overcome by
environmental advantageous conditions raising productivity.
Journal: Applied Economics
Pages: 2159-2168
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427379
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427379
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2159-2168
Template-Type: ReDIF-Article 1.0
Author-Name: Alan de Brauw
Author-X-Name-First: Alan
Author-X-Name-Last: de Brauw
Title: The Kyoto Protocol, market power, and enforcement
Abstract:
The Kyoto Protocol aims to limit aggregate carbon emissions by
participating countries to 1990 emissions levels in aggregate. It also
allows for the creation of a permit market in which countries will be able
to buy and sell the right to emit carbon dioxide. This paper investigates
how market power, held by the countries of the former Soviet Union, and
enforcement of the carbon emission limits might affect the abatement and
the cost of compliance with the Kyoto Protocol. To do so, it uses a
modified version of the van Egteren-Weber (1996) model to investigate a
permit market in the presence of both market power and enforcement
difficulties. It then simulates the model, finding that if meeting
abatement targets is the goal, regulating the supply side of the market
and convex fine schedules are the most effective tools.
Journal: Applied Economics
Pages: 2169-2178
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600895442
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600895442
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2169-2178
Template-Type: ReDIF-Article 1.0
Author-Name: Victor Claar
Author-X-Name-First: Victor
Author-X-Name-Last: Claar
Title: Is the NAIRU more useful in forecasting inflation than the natural rate of unemployment?
Abstract:
Recent studies have indicated that the terms 'NAIRU' (non-accelerating
inflation rate of unemployment) and 'natural rate of unemployment' are not
interchangeable. While NAIRU is an empirical macroeconomic relationship
estimated via a Phillips curve, the natural rate is an equilibrium
condition in the labour market, reflecting the market's microeconomic
features. This study evaluates comparatively the inflation-forecasting
power of alternative time-varying estimates of the natural rate of
unemployment relative to the NAIRU. The natural rate of unemployment in
the USA since the Second World War is estimated. Three alternative methods
are utilized: the Kalman filter, a structural determinants approach, and
the Hodrick-Prescott filter. The section that follows assesses how each
estimator of the natural rate compares with the others - as well as with
the NAIRU derived from a Phillips curve - in forecasting inflationary
changes in the USA in the second half of the twentieth century. The
analysis reveals that the overall inflation-forecasting utility of the
natural rate of unemployment relative to the NAIRU is not very different.
Moreover, the conclusion appears to be quite robust to various estimators
of the natural rate.
Journal: Applied Economics
Pages: 2179-2189
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600701061
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600701061
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2179-2189
Template-Type: ReDIF-Article 1.0
Author-Name: Pilar Poncela
Author-X-Name-First: Pilar
Author-X-Name-Last: Poncela
Author-Name: Eva Senra
Author-X-Name-First: Eva
Author-X-Name-Last: Senra
Title: A two factor model to combine US inflation forecasts
Abstract:
The combination of individual forecasts is often a useful tool to improve
forecast accuracy. The most commonly used technique for forecast
combination is the mean, and it has frequently proved hard to surpass.
This study considers factor analysis to combine US inflation forecasts
showing that just one factor is not enough to beat the mean and that the
second one is necessary. The first factor is usually a weighted mean of
the variables and it can be interpreted as a consensus forecast, while the
second factor generally provides the differences among the variables and,
since the observations are forecasts, it may be related with the
dispersion in forecasting expectations and, in a sense, with its
uncertainty. Within this approach, the study also revisits Friedman's
hypothesis relating the level of inflation with expectations uncertainty
at the beginning of the twenty-first century.
Journal: Applied Economics
Pages: 2191-2197
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427296
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427296
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2191-2197
Template-Type: ReDIF-Article 1.0
Author-Name: Erdinc Telatar
Author-X-Name-First: Erdinc
Author-X-Name-Last: Telatar
Author-Name: Mubariz Hasanov
Author-X-Name-First: Mubariz
Author-X-Name-Last: Hasanov
Title: The asymmetric effects of monetary shocks: the case of Turkey
Abstract:
This paper examines whether there is an asymmetry in the effects of
positive versus negative and small versus big money supply shocks, and
whether the effects of the shocks on output and prices vary over the
business cycles in the case of Turkey. Negative shocks to money are found
to have greater output and smaller price effects compared to the effects
of positive shocks, irrespective of the initial state of the economy. It
is also found that monetary shocks of different size affect output growth
and inflation rates proportionately. These findings can be interpreted as
evidence for the view that the short run aggragate supply curve is convex
in such a country like Turkey.
Journal: Applied Economics
Pages: 2199-2208
Issue: 18
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427411
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427411
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Handle: RePEc:taf:applec:v:38:y:2006:i:18:p:2199-2208
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Temporal causality and the dynamics of judicial appellate caseload, real income and socio-economic complexity in Australia
Abstract:
This study applies Granger causality tests within a multivariate error
correction framework to examine the relationship between judicial
caseload, real income and urbanization for Australia using annual data
from 1904 to 2001. Decomposition of variance and impulse response
functions are also considered. The Granger causality results as well as
the decomposition of variance and impulse response functions suggest that
urbanization is the most exogenous of the three variables in both the long
run and short run while judicial caseload and real income are relatively
exogenous in the short run.
Journal: Applied Economics
Pages: 2209-2219
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427569
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427569
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2209-2219
Template-Type: ReDIF-Article 1.0
Author-Name: Kelvin Balcombe
Author-X-Name-First: Kelvin
Author-X-Name-Last: Balcombe
Author-Name: Iain Fraser
Author-X-Name-First: Iain
Author-X-Name-Last: Fraser
Author-Name: Jae Kim
Author-X-Name-First: Jae
Author-X-Name-Last: Kim
Title: Estimating technical efficiency of Australian dairy farms using alternative frontier methodologies
Abstract:
Technical efficiency is estimated and examined for a cross-section of
Australian dairy farms using various frontier methodologies; Bayesian and
Classical stochastic frontiers, and Data Envelopment Analysis. The results
indicate technical inefficiency is present in the sample data. Also
identified are statistical differences between the point estimates of
technical efficiency generated by the various methodologies. However, the
rank of farm level technical efficiency is statistically invariant to the
estimation technique employed. Finally, when confidence/credible intervals
of technical efficiency are compared significant overlap is found for many
of the farms' intervals for all frontier methods employed. The results
indicate that the choice of estimation methodology may matter, but the
explanatory power of all frontier methods is significantly weaker when
interval estimate of technical efficiency is examined.
Journal: Applied Economics
Pages: 2221-2236
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427445
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2221-2236
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Ezcurra
Author-X-Name-First: Roberto
Author-X-Name-Last: Ezcurra
Author-Name: Pedro Pascual
Author-X-Name-First: Pedro
Author-X-Name-Last: Pascual
Author-Name: Manuel Rapun
Author-X-Name-First: Manuel
Author-X-Name-Last: Rapun
Title: Regional mobility in the European Union
Abstract:
Regional mobility in the spatial distribution of per capita income in the
European Union is examined over the period 1977 to 1999. The methodology
used to investigate this issue combines a series of measures taken from
the literature devoted to the dynamic study of personal income
distribution with a non-parametric analysis. The results show limited
mobility in the distribution considered, and a decline in mobility over
time. The empirical evidence presented indicates, moreover, that mobility
patterns vary as a function of regional development levels. Additionally,
the analysis carried out investigates the role played in explaining
intra-distribution mobility by variables such as per capita income,
population density, per capita expenditure in investment, market
potential, and the share in total employment of agriculture, advanced
services and non-market services.
Journal: Applied Economics
Pages: 2237-2253
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427494
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427494
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2237-2253
Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Staat
Author-X-Name-First: Matthias
Author-X-Name-Last: Staat
Title: Efficiency of hospitals in Germany: a DEA-bootstrap approach
Abstract:
Various attempts to assess the performance of German hospitals have
generated a wide range of estimates regarding their efficiency. These
attempts were based on different, often rather small data sets consisting
of heterogeneous hospitals; the techniques applied range from simple
benchmarking approaches to studies which employ Data Envelopment Analysis
(DEA). Some studies report 'dramatic differences in efficiency' and
propose savings potentials of 50%; others find an average efficiency in
excess of 95% and characterize almost 75% of their observations as fully
efficient. This study presents results for two datasets representative of
two segments of the German hospital system. These segments comprise all
hospitals that have one internal medicine and one surgery department; the
hospitals are located in the old federal states of Germany. None of the
hospitals provides tertiary care. DEA can be applied because all hospitals
offer a comparable quality and range of services. The results were
estimated with a DEA-bootstrapping procedure and suggest an average
bias-corrected efficiency of around 80%.
Journal: Applied Economics
Pages: 2255-2263
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427502
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427502
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2255-2263
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Speight
Author-X-Name-First: Alan
Author-X-Name-Last: Speight
Author-Name: Piers Thompson
Author-X-Name-First: Piers
Author-X-Name-Last: Thompson
Title: Is investment time irreversible? Some empirical evidence for disaggregated UK manufacturing data
Abstract:
It has long been suggested that investment may be time irreversible, and
consideration of the option value of waiting to invest has aroused renewed
interest in this issue. This study tests for time irreversibility in UK
investment according to disaggregation by type of investment expenditure
and across manufacturing sector groupings. The test results reported
indicate that the irreversibility of investment patterns varies not only
from industry to industry but also according to the type of capital being
purchased, with significant time irreversibility detected in gross fixed
capital formation and aggregate vehicles expenditure, and industrial
sector groupings comprising fuels and oil refining, engineering and
vehicles, and textiles and leather. However, only in the first and last of
these series is time irreversibility attributable to non-linearities in
the underlying data generating process, and consistent with threshold
effects which may be associated with (S,s) type models of investment
dynamics.
Journal: Applied Economics
Pages: 2265-2275
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427551
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427551
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2265-2275
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Chien-Chung Nieh
Author-X-Name-First: Chien-Chung
Author-X-Name-Last: Nieh
Author-Name: Ching-Chun Wei
Author-X-Name-First: Ching-Chun
Author-X-Name-Last: Wei
Title: Analysis of long-run benefits from international equity diversification between Taiwan and its major European trading partners: an empirical note
Abstract:
This paper employs four cointegration test approaches, PO, HI, JJ and
KSS, to test for pairwise long-run equilibrium relationships between
Taiwan's stock price index and each of the stock price indexes of four
European markets - French, German, Dutch, and British stock markets. The
results from these four tests are robust and clearly consistent in
suggesting that the Taiwan stock market is not pairwise cointegrated with
the four European stock markets. This provides strong evidence that there
exist long-run benefits for Taiwan investors diversifying in the equity
markets of Taiwan's major European trading partners, France, Germany,
Holland, and the UK, over the sample period considered from 6 January 1998
to 30 May 2002. These findings could be valuable to Taiwan individual
investors and financial institutions holding long-run investment
portfolios in the equity markets of France, Germany, Holland, and the UK.
Journal: Applied Economics
Pages: 2277-2283
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427510
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427510
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2277-2283
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Vermeir
Author-X-Name-First: Jan
Author-X-Name-Last: Vermeir
Author-Name: Bruno Heyndels
Author-X-Name-First: Bruno
Author-X-Name-Last: Heyndels
Title: Tax policy and yardstick voting in Flemish municipal elections
Abstract:
Recent theoretical papers develop political agency models in which voters
compare tax policy with that in neighbouring jurisdictions. In these
yardstick competition models voters judge incumbents by comparing their
policy with policy in neighbouring jurisdictions. This paper reports an
analysis of municipal elections in Flanders during the period 1982 to 2000
and finds empirical evidence for yardstick voting. Incumbents are punished
for higher tax rates. Importantly, the electoral punishment also depends
on tax rates in neighbouring municipalities. Higher rates in neighbouring
municipalities are favourable for the incumbents.
Journal: Applied Economics
Pages: 2285-2298
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427536
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427536
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2285-2298
Template-Type: ReDIF-Article 1.0
Author-Name: Nancy Kong
Author-X-Name-First: Nancy
Author-X-Name-Last: Kong
Author-Name: Jose Tongzon
Author-X-Name-First: Jose
Author-X-Name-Last: Tongzon
Title: Estimating total factor productivity growth in Singapore at sectoral level using data envelopment analysis
Abstract:
Trends in total factor productivity growth (TFPG) are examined in the ten
major sectors of Singapore. Data are drawn from the Yearbook of
Statistics, Singapore, (various issues) and Economic Survey of Singapore
series ranging from the year 1985 to 2000. Due to the heterogeneous
characteristic of each sector and non-availability of reliable input price
data, this study uses a non-parametric, frontier methodology known as data
envelopment analysis (DEA) to obtain the Malmquist Productivity Index at
the sectoral level. The results can help Singapore identify the 'best
practice' sector and laggards in three aspects: efficiency change,
technical change and TFPG, which is the qualitative productivity
improvements needed for long-term economic growth. The three sets of
productivity estimates are adjusted for effects of inflation and business
cycles so that they are more reliable for policy implications. This
exercise will provide a platform for more detailed study on the
determinants of TFP growth in different sectors and at the firm level in
Singapore.
Journal: Applied Economics
Pages: 2299-2314
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427544
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427544
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2299-2314
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Arana
Author-X-Name-First: Jorge
Author-X-Name-Last: Arana
Author-Name: Carmelo Leon
Author-X-Name-First: Carmelo
Author-X-Name-Last: Leon
Title: Modelling unobserved heterogeneity in contingent valuation of health risks
Abstract:
Human preferences for alternative levels of health risks can be
heterogeneous. In this paper a flexible distribution approach to model
health values elicited with the dichotomous choice contingent valuation
method is considered. Rigid parametric structures cannot model sample
heterogeneity while imposing strong assumptions on the error distribution.
A mixture of normal distributions is considered which can approximate
arbitrary well any empirical distributions as the number of mixtures
increases. The model is applied to data on willingness to pay for reducing
the individual risk of an episode of respiratory illness. The mixture
distribution model is compared with the rigid probit model using a Bayes
factor test. The results show that the mixture modelling approach improves
performance while allowing for the consideration of alternative groups of
individuals with different preferences for health risks.
Journal: Applied Economics
Pages: 2315-2325
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427460
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427460
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2315-2325
Template-Type: ReDIF-Article 1.0
Author-Name: Joo-Suk Lee
Author-X-Name-First: Joo-Suk
Author-X-Name-Last: Lee
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Author-Name: Seung-Jun Kwak
Author-X-Name-First: Seung-Jun
Author-X-Name-Last: Kwak
Title: Consumers' preferences for the attributes of post-PC: results of a contingent ranking study
Abstract:
With the explosive growth of the internet and the change in consumer
demand, post-PC is emerging as a substitute for the existing desktop PC
and laptop PC. post-PC is a new computer which is portable with wireless
networking, cheaper than the existing PC and specializing in the specific
functions that consumers want. Rudimentary post-PCs such as PDA, web-pad
and smart-phone are already in use. In the future, owing to technological
progress, the heterogeneity of related companies and the low entry
barrier, various post-PCs will be developed. This paper attempts to
analyse consumers' willingness-to-pay (WTP) for post-PC with such
attributes as portability, CPU speed, data input method (using key board
or electric pen), monitor size, and price. To this end, a contingent
ranking method is applied, which makes the respondents rank hypothetical
post-PC alternatives featuring various combinations of attributes, via a
survey data collected in Korea. Using the estimated WTP, the shape and the
capacity of future post-PC are predicted and policy implications drawn for
national- and company-level R&D strategies.
Journal: Applied Economics
Pages: 2327-2334
Issue: 19
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427486
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427486
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Handle: RePEc:taf:applec:v:38:y:2006:i:19:p:2327-2334
Template-Type: ReDIF-Article 1.0
Author-Name: Laura Romeu Gordo
Author-X-Name-First: Laura Romeu
Author-X-Name-Last: Gordo
Title: Effects of short- and long-term unemployment on health satisfaction: evidence from German data
Abstract:
The purpose of this study is to analyse the effects of short- and
long-term unemployment on health satisfaction. The data source used for
the analysis is the German Socio-Economic Panel (GSOEP) which, given its
longitudinal structure, allows one to better overcome the problem of
endogeneity. Three different models are used in order to assess the effect
of short and long-term unemployment and reemployment on health
satisfaction. The results show that short-term unemployment has only a
significant (and negative) effect for men, while for women short-term
unemployment does not have a significant effect on health satisfaction.
Being unemployed for a long period has a significant and negative effect
for both men and women. Finally, it can be also concluded from the
empirical analysis that reemployment has a significant and positive effect
on health satisfaction for both unemployed men and women, independent of
how long individuals have been unemployed.
Journal: Applied Economics
Pages: 2335-2350
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427692
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427692
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2335-2350
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: Angel Aguiar
Author-X-Name-First: Angel
Author-X-Name-Last: Aguiar
Title: Effects of global trade liberalization on softwood lumber markets
Abstract:
This study develops a world spatial equilibrium softwood lumber model
comprised of the major importing and exporting countries/regions to
analyse the impacts of global trade reform on the world softwood lumber
market. The results show that free trade leads to an increase in lumber
trade, and Canadian producers and US consumers are the biggest
beneficiaries. Trade liberalization improves the overall world welfare as
world producer and consumer surpluses increase. The result highlights the
importance of moving towards free trade in the global softwood lumber
market.
Journal: Applied Economics
Pages: 2351-2360
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427619
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427619
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2351-2360
Template-Type: ReDIF-Article 1.0
Author-Name: Keun-Yeob Oh
Author-X-Name-First: Keun-Yeob
Author-X-Name-Last: Oh
Author-Name: Bonghan Kim
Author-X-Name-First: Bonghan
Author-X-Name-Last: Kim
Author-Name: Honkee Kim
Author-X-Name-First: Honkee
Author-X-Name-Last: Kim
Title: An empirical study of the relation between stock price and EPS in panel data: Korea case
Abstract:
This study investigates the relationship between stock price and
earnings-per-share using Korean stock market data. The nonstationarity of
the data has been managed. In particular, recently developed panel
cointegration techniques are used, which are known to be more powerful
than individual cointegration methods. The tests applied to the panel data
as a whole showed the cointegration relationship between the stock prices
and EPS (earnings-per-share), while tests for the individual stock prices
could not detect the cointegration. Therefore, there is now some evidence
in support of weak mean-reversion for the PER (Price-Earnings Ratio).
However, only mixed evidence was obtained for the hypothesis that the
coefficient of EPS to the stock prices is equal to one. In short, stock
prices do seem to move with firm fundamentals, in the long-run and on
average, but not necessarily at the same rate.
Journal: Applied Economics
Pages: 2361-2369
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427593
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427593
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2361-2369
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Hawkins
Author-X-Name-First: Richard
Author-X-Name-Last: Hawkins
Author-Name: Sally Wallace
Author-X-Name-First: Sally
Author-X-Name-Last: Wallace
Title: Source of income effects for demand decisions and taxable consumption
Abstract:
The relationship between sources of income and demand decisions by the
household is examined here with an eye toward the ramifications on
consumption tax bases. Income sources may be important when households
attach psychic and transaction costs to individual purchases or when
sources are assigned via a mental accounting process. In either case,
general and specific sales tax bases may be affected by changes in income
composition. Empirical results indicate two important findings. First, tax
exemptions can introduce significant income source effects for a general
consumption tax base. Second, the importance of differential tax rates for
gasoline and food-at-home strongly depends on the mix of labour, capital,
retirement and non-retirement transfer pay.
Journal: Applied Economics
Pages: 2371-2379
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427528
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427528
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2371-2379
Template-Type: ReDIF-Article 1.0
Author-Name: Lila Truett
Author-X-Name-First: Lila
Author-X-Name-Last: Truett
Author-Name: Dale Truett
Author-X-Name-First: Dale
Author-X-Name-Last: Truett
Title: Production and costs in the South African motor vehicle industry
Abstract:
This study investigates the existence of economies of scale in the South
African motor vehicle industry as well as the substitution possibilities
between input pairs and the direct and cross-price elasticities of demand
for the various inputs. Because of data limitations, a translog cost
function was estimated for only a three input model corresponding to a
homogeneous production function involving capital, labour and intermediate
goods. The issue of the existence of economies of scale in the South
African motor vehicle industry is a particularly important one because
South Africa once again is a member of GATT and a full participant in the
international trade arena. The null hypothesis of constant returns to
scale was rejected at the 0.5% level of significance. Thus, the results of
this model are certainly consistent with economies of scale in the South
African motor vehicle industry. The estimated direct price elasticities
were consistent with the hypothesis that, during the past two decades,
capital was the productive factor with the most elastic demand, and the
estimated cross-elasticities between input pairs generally supported the
hypothesis that all inputs are substitutes.
Journal: Applied Economics
Pages: 2381-2392
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840600865734
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600865734
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2381-2392
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Javier de Miguel Velez
Author-X-Name-First: Francisco Javier de Miguel
Author-X-Name-Last: Velez
Author-Name: Jesus Perez-Mayo
Author-X-Name-First: Jesus
Author-X-Name-Last: Perez-Mayo
Title: Linear SAM models for inequality changes analysis: an application to the Extremadurian economy
Abstract:
Social accounting matrices are adequate databases for the economic
modelling. These matrices emphasize the role of households in the economy,
and so, they usually disaggregate the household sector into several
groups. This disaggregation allows social accounting matrices to be used
for diverse income distribution analysis. The objective of this work is to
use the linear SAM models to study how inequality is modified by several
exogenous injections of income. The set of multipliers and indicators
presented is applied to the economy of Extremadura - a region situated in
the southwest of Spain. In particular, together with the accounting
multipliers, two redistributed income matrices are presented to show how
changes in final demand and in income transfers cause opposite effects in
inequality. For contrasting these results, Gini and Theil indices are also
used. Finally, a major reduction in both would result from an appropriate
re-allocation of transfers.
Journal: Applied Economics
Pages: 2393-2403
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427825
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427825
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2393-2403
Template-Type: ReDIF-Article 1.0
Author-Name: Jaewoon Koo
Author-X-Name-First: Jaewoon
Author-X-Name-Last: Koo
Author-Name: Kyunghee Maeng
Author-X-Name-First: Kyunghee
Author-X-Name-Last: Maeng
Title: Foreign ownership and investment: evidence from Korea
Abstract:
This study examines whether an increase in foreign ownership affects
investment in Korea. Many studies have shown that in an imperfect
financial market, a firm's investment depends on the availability of
internal funds. If high foreigners' shareholding is a sign of a firm's
good financial position, and if foreign investors demand better corporate
governance to protect their investments, then cash-flow sensitivity of
investment decreases with the level of foreign ownership. Using data from
Korean firms, it is found that cash-flow sensitivity of investment is
lower in firms with high foreign ownership than in those with low foreign
ownership. This finding is regarded as evidence for a potential benefit of
open financial markets.
Journal: Applied Economics
Pages: 2405-2414
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427817
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427817
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2405-2414
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner
Author-X-Name-First: Joachim
Author-X-Name-Last: Wagner
Title: Are nascent entrepreneurs 'Jacks-of-all-trades'? A test of Lazear's theory of entrepreneurship with German data
Abstract:
In a recent paper Edward Lazear proposed the 'Jack-of-all-trades' view of
entrepreneurship. Based on a coherent model of the choice between
self-employment and paid employment he shows that having a background in a
large number of different roles increases the probability of becoming an
entrepreneur. The intuition behind this proposition is that entrepreneurs
must have sufficient knowledge in a variety of areas to put together the
many ingredients needed for survival and success in a business, while for
paid employees it suffices and pays to be a specialist in the field
demanded by the job taken. This study contributes to the entrepreneurship
literature by empirically testing Lazear's hypothesis using a large recent
representative sample of the German population. The empirical estimation
takes the rare events nature of becoming a nascent entrepreneur and the
regional stratification of the sample into account. The results illustrate
the statistical significance and economic importance of the
'jack-of-all-trades' theory.
Journal: Applied Economics
Pages: 2415-2419
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427783
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427783
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2415-2419
Template-Type: ReDIF-Article 1.0
Author-Name: Haydar Sengul
Author-X-Name-First: Haydar
Author-X-Name-Last: Sengul
Author-Name: Seda Sengul
Author-X-Name-First: Seda
Author-X-Name-Last: Sengul
Title: Food consumption and economic development in Turkey and European Union countries
Abstract:
This study investigates the relationship between food consumption and
economic development in Turkey and European Union countries. Differences
in food diets are analysed by using data on per capita consumption in
caloric terms based on the period from 1970 to 2000. The cluster analysis
is employed to derive country grouping on the basis of similarities in
dietary structure in the 1970 and 2000. Existence of a trend towards a
common European diet is explored with Beta convergence. The empirical
results show that per capita food consumption is becoming less responsive
to changes in income and appears to be reaching a ceiling in the majority
of EU countries and Turkey. However, the share of animal products in food
consumption diet is low and income expenditure elasticity of animal
products is higher with 0.84 values in Turkey than that in European
countries in 2000. There are great differences in dietary structure
between Turkey and the European Union. Differences also exist between
European Union countries; however, despite these differences there is a
general tendency for dietary structure to become increasingly similar
across the majority of European Union countries. The result also supports
the absence of a convergence towards a common diet if Turkey joins the
European Union.
Journal: Applied Economics
Pages: 2421-2431
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427726
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427726
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2421-2431
Template-Type: ReDIF-Article 1.0
Author-Name: Juncal Cunado
Author-X-Name-First: Juncal
Author-X-Name-Last: Cunado
Author-Name: Fernando Perez de Gracia
Author-X-Name-First: Fernando Perez
Author-X-Name-Last: de Gracia
Title: Real convergence in some Central and Eastern European countries
Abstract:
This article examines the real convergence hypothesis in some Central and
East European countries (both towards the German and the US economies) by
means of using time series techniques during the period 1950 to 2003. No
evidence is found of real convergence for the whole period. However, when
one allows for structural breaks, evidence is found of a catch-up process
during the 1990s to 2003 period for Poland, the Czech Republic and Hungary
towards Germany and only for Poland towards the US economy.
Journal: Applied Economics
Pages: 2433-2441
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427718
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427718
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2433-2441
Template-Type: ReDIF-Article 1.0
Author-Name: Arzu Akkoyunlu-Wigley
Author-X-Name-First: Arzu
Author-X-Name-Last: Akkoyunlu-Wigley
Author-Name: Sevinc Mihci
Author-X-Name-First: Sevinc
Author-X-Name-Last: Mihci
Title: Effects of the customs union with the European Union on the market structure and pricing behaviour of the Turkish manufacturing industry
Abstract:
Turkey established a Customs Union with the European Union in 1996. This
study aims to analyse the effect of that Customs Union on the market
structure and the pricing behaviour of the Turkish manufacturing industry
for the period 1994 to 2000. To that end, the price cost mark-up equation
of 12 manufacturing industry sectors is estimated using the import and
export ratios with European Union countries together with control
variables. A second equation is also estimated for the concentration ratio
index, taking the trade ratios with European Union countries as
explanatory variables. The estimation method is panel data covering eight
years and 12 cross-section units. Estimation outcomes indicate that the
export and import ratios of trade with European Union countries have a
negative relation with the price cost mark-up in the manufacturing sector.
It is concluded that increased imports with union countries have created a
positive wealth and efficiency effect upon the Turkish manufacturing
industry, due to falling price cost mark-ups. Similarly, the concentration
ratio equation estimation outcomes indicate that increased imports with
union countries have induced a decline in the concentration ratio for the
manufacturing industry during the period in question.
Journal: Applied Economics
Pages: 2443-2452
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427643
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427643
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2443-2452
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Hsu-Ling Chang
Author-X-Name-First: Hsu-Ling
Author-X-Name-Last: Chang
Author-Name: Hsiao-Ping Chu
Author-X-Name-First: Hsiao-Ping
Author-X-Name-Last: Chu
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Title: Does PPP hold in African countries? Further evidence based on a highly dynamic non-linear (logistic) unit root test
Abstract:
With a view to investigating whether the purchasing power parity (PPP)
theory holds true for selected African countries during the January
1980-December 2003 period, we employ a rigorous, highly dynamic non-linear
(logistic) unit root test, as first advanced by Leybourne et al. (1998),
which is considerably more powerful than those tests traditionally used.
Compared with the rejection of the null of the unit root process for only
one of the 22 countries under study when we use the traditional ADF, PP,
KPSS, NP and the DF-GLS unit root tests, with the Leybourne et al. (1998)
test, we strongly reject the null of the unit root process for a
surprising six of the 22 countries. These empirical results clearly
indicate that PPP holds true for these six countries, namely the Central
African Republic, the Cote d'Ivoire, Kenya, Madagascar, Uganda and
Lesotho.
Journal: Applied Economics
Pages: 2453-2459
Issue: 20
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427890
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427890
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Handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2453-2459
Template-Type: ReDIF-Article 1.0
Author-Name: G. Reza Arabsheibani
Author-X-Name-First: G. Reza
Author-X-Name-Last: Arabsheibani
Author-Name: Alan Marin
Author-X-Name-First: Alan
Author-X-Name-Last: Marin
Title: If not computers then what? Returns to computer use in the UK revisited
Abstract:
In recent years much attention has been paid to the effect on wages of
skill-biased technology, especially the use of computers. Although
empirical studies have shown a positive relationship between computer-use
and earnings, doubts have been cast on whether this is a causal
relationship or merely represents unobserved other factors, which are
themselves positively linked to computer usage. This study provides
evidence that computers themselves raise wages. Although their impact on
wages falls as other controls are included in the regression, it still
remains significant whilst the effect of another proxy for unobserved
factors becomes insignificant. Furthermore, improvements in computer use
have an additional impact on earnings, supporting the productivity
interpretation.
Journal: Applied Economics
Pages: 2461-2467
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427668
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427668
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2461-2467
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Andren
Author-X-Name-First: Thomas
Author-X-Name-Last: Andren
Author-Name: Daniela Andren
Author-X-Name-First: Daniela
Author-X-Name-Last: Andren
Title: Assessing the employment effects of vocational training using a one-factor model
Abstract:
Matching estimators use observed variables to adjust for differences
between groups to eliminate sample selection bias. When minimum relevant
information is not available, matching estimates are biased. If access to
data on usually unobserved factors that determine the selection process is
unavailable, other estimators should be used. This study advocates the
one-factor control function estimator that allows for unobserved
heterogeneity with factor-loading technique. Treatment effects of
vocational training in Sweden are estimated with mean and distributional
parameters, and then compared with matching estimates. The results
indicate that unobservables slightly increase the treatment effect for
those treated.
Journal: Applied Economics
Pages: 2469-2486
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427577
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427577
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2469-2486
Template-Type: ReDIF-Article 1.0
Author-Name: Ernst Juerg Weber
Author-X-Name-First: Ernst Juerg
Author-X-Name-Last: Weber
Title: Monetary policy in a heterogeneous monetary union: the Australian experience
Abstract:
Australia is a monetary union with strong regional specialization.
Manufacturing and service industries are located in the population centres
on the south-eastern seaboard, and mining and pastoral activities take
place in the interior and north of the continent. Monetary policy affects
the interior and north more strongly than the south-eastern seaboard
because Australian primary goods are mostly exported and the exchange rate
provides the main transmission channel for monetary policy. The Reserve
Bank of Australia must consider the economic interests of the interior and
north and the south-eastern seaboard. Since monetary policy cannot
differentiate between regions, there is a need for interregional
macroeconomic risk-sharing.
Journal: Applied Economics
Pages: 2487-2495
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427742
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427742
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2487-2495
Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Dacuycuy
Author-X-Name-First: Lawrence
Author-X-Name-Last: Dacuycuy
Title: Explaining male wage inequality in the Philippines: non-parametric and semiparametric approaches
Abstract:
The study examines the roles of experience and education in explaining
the increase in wage inequality among Philippine male workers between 1988
and 1995. It also provides a methodological approach to the analysis of
wage inequality by combining non-parametric methods with semiparametric
additive models, using the variance accounting framework. Non-parametric
density estimators allow flexibility in dealing with distributional
inference while additive models yield marginal effects estimates under
minimal assumptions on the functional specification of the wage-schooling
and wage-experience relationships. The results show that much of the
inequality increase from 1988 to 1995 was caused by greater variabilities
in returns to schooling and experience among 1995 workers. The rise of the
p90/p10 percentile ratio was caused by greater return variabilities on
schooling and experience in the 90th percentile.
Journal: Applied Economics
Pages: 2497-2511
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427767
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427767
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2497-2511
Template-Type: ReDIF-Article 1.0
Author-Name: Sonia Bhalotra
Author-X-Name-First: Sonia
Author-X-Name-Last: Bhalotra
Title: Near rationality in wage setting
Abstract:
This study argues that it is interesting to examine near rational
behaviour in the context of an efficiency wage model, where there are
positive if decreasing returns to increasing the wage beyond the efficient
level. Previous research has found it difficult to distinguish between
efficiency wage and bargaining models, which have similar empirical
predictions. But unions are a priori more likely to develop in
environments in which the technology favours efficiency wage payments.
This makes it interesting to investigate what it costs the firm to deviate
from the efficiency wage. If it does not cost a lot, firms may give in to
union demands. This study derives expressions for the wage deviation and
for the associated profit loss. For illustrative purposes, these are
calibrated for UK, US and Indian manufacturing, taking a plausible
parameterization of the effort-wage function and using available estimates
of the wage and employment elasticities of output. While there is evidence
of positive effort returns to wages in the UK and India, the results are
consistent with wage bargaining pushing the wage above the efficient
level. The associated profit loss is considerably larger in the UK than in
India. In contrast, US firms pay wages that are insignificantly different
from the efficiency wage.
Journal: Applied Economics
Pages: 2513-2521
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427734
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427734
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2513-2521
Template-Type: ReDIF-Article 1.0
Author-Name: Young-Kyu Moh
Author-X-Name-First: Young-Kyu
Author-X-Name-Last: Moh
Title: Continuous-time model of uncovered interest parity with regulated jump-diffusion interest differential
Abstract:
This study investigates to what extent can an exchange rate model built
on uncovered interest parity (UIP) match the empirical features of the
exchange rate and the interest differential data. This article presents a
continuous-time model of UIP in which the interest differential evolves
following regulated jump-diffusion. Simulation experiments show that the
model is capable of matching several important features of the data.
Inclusion of jumps improves the model to capture persistent dynamics of
interest differential and fat-tails in exchange rate returns compared to
simple diffusion processes.
Journal: Applied Economics
Pages: 2523-2533
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427809
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427809
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2523-2533
Template-Type: ReDIF-Article 1.0
Author-Name: Muzafar Shah Habibullah
Author-X-Name-First: Muzafar Shah
Author-X-Name-Last: Habibullah
Author-Name: Peter Smith
Author-X-Name-First: Peter
Author-X-Name-Last: Smith
Author-Name: W. N. W. Azman-Saini
Author-X-Name-First: W. N. W.
Author-X-Name-Last: Azman-Saini
Title: Testing liquidity constraints in 10 Asian developing countries: an error-correction model approach
Abstract:
An error-correction model is used to estimate the fraction of consumers
who are liquidity-constrained in 10 Asian developing countries. Our
estimates of the fraction of consumers who are liquidity-constrained range
between 0.25 and 0.98. We further investigate whether financial
liberalization has resulted in the reduction of liquidity constraints in
these countries. However, the results find support for this only in the
cases of South Korea, Sri Lanka and Taiwan.
Journal: Applied Economics
Pages: 2535-2543
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427833
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427833
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2535-2543
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu
Author-X-Name-First: Chun-Chu
Author-X-Name-Last: Liu
Title: Simulating weight restrictions in data envelopment analysis using the subjective and objective integrated approach
Abstract:
Data envelopment analysis (DEA) is a method that uses a mathematical
programming model to determine the relative efficiency of a
decision-making unit, and gives optimal weight for a set of inputs and
outputs. The scores of the weights will generally differ from unit to unit
and this flexibility in the choice of weights is both a strength and a
weakness of this approach. The strength is that the weight generated will
be fair and equitable, and not affected by subjective factors. The
weakness is that, if the weight is selected intentionally, it may then
make the decision-making unit relatively efficient, and its efficiency
will not necessarily come from an inherent efficiency, but from the
selection of the weight. Is the score of the relative efficiency obtained
using such an innate weight fair, reasonable, and acceptable? This
question is addressed in order to integrate the subjective and objective
weights restriction method, so that the results of the evaluation can be
more realistic. The study concludes by taking the garbage clearance of
each district in Kaohsiung city in Southern Taiwan is considered to
illustrate this approach.
Journal: Applied Economics
Pages: 2545-2552
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840601043752
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601043752
File-Format: text/html
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2545-2552
Template-Type: ReDIF-Article 1.0
Author-Name: Christian von Hirschhausen
Author-X-Name-First: Christian
Author-X-Name-Last: von Hirschhausen
Author-Name: Astrid Cullmann
Author-X-Name-First: Astrid
Author-X-Name-Last: Cullmann
Author-Name: Andreas Kappeler
Author-X-Name-First: Andreas
Author-X-Name-Last: Kappeler
Title: Efficiency analysis of German electricity distribution utilities - non-parametric and parametric tests
Abstract:
This study applies non-parametric and parametric tests to assess the
efficiency of electricity distribution companies in Germany. Traditional
issues in electricity sector benchmarking are addressed, such as the role
of scale effects and optimal utility size, as well as new evidence
specific to the situation in Germany. Labour, capital, and peak load
capacity are used as inputs, and units sold and the number of customers as
output. The data cover 307 (out of 553) German electricity distribution
utilities. A data envelopment analysis (DEA) is applied with constant
returns to scale (CRS) as the main productivity analysis technique,
whereas stochastic frontier analysis (SFA) with distance function is the
verification method. The results suggest that returns to scale play but a
minor role; only very small utilities have a significant cost advantage.
Low customer density is found to affect the efficiency score
significantly, in particular in the lower third of all observations.
Surprisingly, East German utilities feature a higher average efficiency
than their West German counterparts. The correlation tests imply a high
coherence of the results.
Journal: Applied Economics
Pages: 2553-2566
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427650
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427650
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2553-2566
Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Amzad Hossain
Author-X-Name-First: Amzad
Author-X-Name-Last: Hossain
Title: Market deregulation, trade liberalization and productive efficiency in Bangladesh agriculture: an empirical analysis
Abstract:
The impact of trade liberalization and of market deregulation in general,
on the performance of agriculture remains contentious and empirical issue
in the literature. Following the random coefficient frontier modelling
framework, this paper attempts to contribute to this debate by computing
the farm-specific productive efficiency indices in Bangladesh agriculture
before and after reform. It also examines the impact of some farm-specific
and policy variables on productive efficiency. The empirical results show
that there are wide variations in productive efficiency across farms and
regions and the average efficiency of all regions increased modestly by 8
percentage points from the pre-reform to post-reform period. The
efficiency differentials are largely explained by farm size,
infrastructure, households' off-farm income and the reduction of
government anti-agricultural bias in relation to trade and domestic
policies. The implication of these results suggests the need for further
policy reform to augment productive efficiency.
Journal: Applied Economics
Pages: 2567-2580
Issue: 21
Volume: 38
Year: 2006
X-DOI: 10.1080/00036840500427585
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427585
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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2567-2580
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Gelper
Author-X-Name-First: Sarah
Author-X-Name-Last: Gelper
Author-Name: Aurelie Lemmens
Author-X-Name-First: Aurelie
Author-X-Name-Last: Lemmens
Author-Name: Christophe Croux
Author-X-Name-First: Christophe
Author-X-Name-Last: Croux
Title: Consumer sentiment and consumer spending: decomposing the Granger causal relationship in the time domain
Abstract:
It is often believed that the consumer sentiment index has predictive
power for future consumption levels. While Granger causality tests have
already been used to test for this, no attempt has been made yet to
quantify the predictive power of the consumer sentiment index over
different time horizons. In this article, we decompose the Granger
causality at different time lags, by looking at a sequence of nested
prediction models. Since the consumer sentiment index turns out to be
cointegrated with real consumption, we resort to error correcting models.
Four consumption series are studied, namely total real consumption, real
consumption of durables, non-durables and services. Among other findings,
we show that the consumer sentiment index Granger causes future
consumption with an average time lag of 4-5 months. Furthermore, it is
found that the consumer sentiment index has more incremental predictive
power for consumption of services than for consumption of durables or
non-durables, and that the index is not only useful as a predictor at the
very short term, but keeps predictive power at larger time horizons.
Journal: Applied Economics
Pages: 1-11
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427791
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427791
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:1-11
Template-Type: ReDIF-Article 1.0
Author-Name: Robert-Paul Berben
Author-X-Name-First: Robert-Paul
Author-X-Name-Last: Berben
Title: Does stock market uncertainty impair the use of monetary indicators in the euro area?
Abstract:
The relationship between monetary indicators and inflation is usually
assumed to be linear, implying that looser monetary conditions always
signal an increase in inflation. Recently, money growth in the euro area
surged while inflation remained comparatively subdued. This seems at
variance with linearity. At the same time, stock market uncertainty
peaked, suggesting that part of the money growth resulted from portfolio
adjustment and was hence non-inflationary. A threshold regression model is
employed to verify the claim that the impact of monetary indicators on
future inflation varies conditional on stock price volatility. It is shown
that there is limited evidence to support this claim. On the other hand,
the results indicate that stock market data may contain useful information
regarding future inflation,
Journal: Applied Economics
Pages: 13-23
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600903436
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600903436
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:13-23
Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Gustavsson
Author-X-Name-First: Magnus
Author-X-Name-Last: Gustavsson
Title: The 1990s rise in Swedish earnings inequality -- persistent or transitory?
Abstract:
This article decomposes the rise in the cross-sectional variance of male
annual earnings in Sweden between 1991 and 1999 into its persistent and
transitory components. The results show that the persistent component
accounts for basically all of the increase in earnings dispersion. This
implies that the answer to the 1990s trend reversal in Swedish earnings
inequality is to be found in explanations that focus on persistent changes
in the labour market, such as changes in the price of skills.
Journal: Applied Economics
Pages: 25-30
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428039
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:25-30
Template-Type: ReDIF-Article 1.0
Author-Name: John Tauras
Author-X-Name-First: John
Author-X-Name-Last: Tauras
Author-Name: Lisa Powell
Author-X-Name-First: Lisa
Author-X-Name-Last: Powell
Author-Name: Frank Chaloupka
Author-X-Name-First: Frank
Author-X-Name-Last: Chaloupka
Author-Name: Hana Ross
Author-X-Name-First: Hana
Author-X-Name-Last: Ross
Title: The demand for smokeless tobacco among male high school students in the United States: the impact of taxes, prices and policies
Abstract:
Despite the deleterious effects of smokeless tobacco use, very little is
known about the effects of tobacco control policies on smokeless tobacco
demand. This paper uses data extracted from the 1995-2001 National Youth
Risk Behavior Surveys (YRBS) augmented with tobacco taxes, prices and
policies to estimate smokeless tobacco demand equations among male high
school students. The estimates indicate that higher smokeless tobacco
taxes would significantly reduce the number of male students who use
smokeless tobacco and the number of days smokeless tobacco users use
smokeless tobacco. Moreover, smokeless tobacco products and cigarettes
were found to be economic complements in consumption.
Journal: Applied Economics
Pages: 31-41
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427940
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427940
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:31-41
Template-Type: ReDIF-Article 1.0
Author-Name: John Dawson
Author-X-Name-First: John
Author-X-Name-Last: Dawson
Author-Name: Steven Millsaps
Author-X-Name-First: Steven
Author-X-Name-Last: Millsaps
Author-Name: Mark Strazicich
Author-X-Name-First: Mark
Author-X-Name-Last: Strazicich
Title: Trend breaks and non-stationarity in the Yugoslav black market for dollars, 1974-1987
Abstract:
We estimate a model of the black market premium for dollars in Yugoslavia
from 1974 to 1987. Unlike previous applications of the model, our analysis
addresses non-stationarity in the underlying data by allowing for trend
breaks. Endogenous structural break tests indicate the presence of breaks
closely associated with the death of Tito and changes in laws affecting
the operation of the black market. After accounting for these breaks, we
find strong support for the underlying model. In addition, we find
evidence consistent with the era of increased government involvement in
the black market leading to greater volatility of the premium following
regime change.
Journal: Applied Economics
Pages: 43-51
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427932
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427932
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:43-51
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: Nildag Basak Ceylan
Author-X-Name-First: Nildag Basak
Author-X-Name-Last: Ceylan
Author-Name: Hasan Olgun
Author-X-Name-First: Hasan
Author-X-Name-Last: Olgun
Title: Inflation uncertainty and interest rates: is the Fisher relation universal?
Abstract:
This paper tests the validity of the Fisher hypothesis, which establishes
a positive relation between interest rates and expected inflation, for the
G7 countries and 45 developing economies. For this purpose, we estimate a
version of the GARCH specification of the hypothesis for all countries
included in the sample. We also test the augmented Fisher relation by
including the inflation uncertainty in the equation. The simple Fisher
relation holds in all G7 countries but in only 23 developing countries.
There is a positive and statistically significant relationship between
interest rates and inflation uncertainty for six of the G7 and 18 of the
developing countries and this relationship is negative for seven
developing countries.
Journal: Applied Economics
Pages: 53-68
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427908
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427908
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:53-68
Template-Type: ReDIF-Article 1.0
Author-Name: Harry Telser
Author-X-Name-First: Harry
Author-X-Name-Last: Telser
Author-Name: Peter Zweifel
Author-X-Name-First: Peter
Author-X-Name-Last: Zweifel
Title: Validity of discrete-choice experiments evidence for health risk reduction
Abstract:
There is growing interest in discrete-choice experiment (DCE) as a method
to elicit consumers' preferences in the health care sector. Increasingly
this method is used to determine willingness to pay (WTP) for
health-related goods. However, its external validity in the health care
domain has not been investigated until now. This paper examines the
external validity of DCE concerning the reduction of a health risk.
Convergent validity is examined by comparing the value of a statistical
life with other preference elicitation techniques, such as revealed
preference. Criterion validity is shown by comparing WTP values derived
from stated choices in the experiment with those derived from actual
choices made by the same individuals. Both tests provide strong evidence
in favour of external validity of the DCE method.
Journal: Applied Economics
Pages: 69-78
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427858
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427858
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:69-78
Template-Type: ReDIF-Article 1.0
Author-Name: Chin-Tsai Lin
Author-X-Name-First: Chin-Tsai
Author-X-Name-Last: Lin
Author-Name: Yi-Hsien Wang
Author-X-Name-First: Yi-Hsien
Author-X-Name-Last: Wang
Title: The impact of party alternative on the stock market: the case of Japan
Abstract:
This paper tries to clarify whether change in political regime has an
effect on the behaviour of the stock market in Japan. The empirical study
finds that the transition of ruling party effect is not a crucial variable
to the Nikkei 225. The alienation felt by the Japanese about the political
environment, resulting in a succession of prime ministers, does not
influence the Nikkei 225 stock market behaviour. Therefore, former prime
ministers who have resigned have become scapegoats for the poor
performance of financial and economic policies.
Journal: Applied Economics
Pages: 79-85
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427882
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427882
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:79-85
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Hans Matthews
Author-X-Name-First: Peter Hans
Author-X-Name-Last: Matthews
Author-Name: Paul Sommers
Author-X-Name-First: Paul
Author-X-Name-Last: Sommers
Author-Name: Francisco Peschiera
Author-X-Name-First: Francisco
Author-X-Name-Last: Peschiera
Title: Incentives and superstars on the LPGA Tour
Abstract:
Following Ehrenberg and Bognanno (1990a, b), this study explores the role
of incentives on the 2000 LPGA Tour. Overall, it finds them to have
limited effectiveness. Several possible explanations are considered,
including unmeasured differences in both abilities and courses and
variations in the distribution of prizes across tournaments. The existence
of a 'superstar effect' is also considered.
Journal: Applied Economics
Pages: 87-94
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840601004143
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601004143
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:87-94
Template-Type: ReDIF-Article 1.0
Author-Name: Ludwig Von Auer
Author-X-Name-First: Ludwig
Author-X-Name-Last: Von Auer
Author-Name: John Brennan
Author-X-Name-First: John
Author-X-Name-Last: Brennan
Title: Bias and inefficiency in quality-adjusted hedonic regression analysis
Abstract:
Numerous quality-adjusted hedonic price-trend studies based on computer
prices have provided support to widely held suspicions that officially
released price indices are not accurately measuring the price declines
occurring in many information technology (IT) products. If provable, then
general price inflation is being overestimated and, consequently, real GDP
is being underestimated. Existing evidence, however, is inconclusive.
First, empirical findings for IT products other than computers are
essentially non-existent and, secondly, estimation bias is inherent in the
hedonic regression technique most commonly employed. This article presents
an unbiased method together with an estimated quality-adjusted price trend
for laser printers (1993-2004).
Journal: Applied Economics
Pages: 95-107
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427841
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427841
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:95-107
Template-Type: ReDIF-Article 1.0
Author-Name: Albert Wijeweera
Author-X-Name-First: Albert
Author-X-Name-Last: Wijeweera
Author-Name: Brian Dollery
Author-X-Name-First: Brian
Author-X-Name-Last: Dollery
Author-Name: Don Clark
Author-X-Name-First: Don
Author-X-Name-Last: Clark
Title: Corporate tax rates and foreign direct investment in the United States
Abstract:
A significant research effort has been directed at establishing the
determinants of foreign direct investment (FDI), with taxation policy
identified as an important factor. However, the empirical literature has
been limited in several respects, with most work focused exclusively on
host country tax regimes. This paper seeks to extend the boundaries of FDI
empirical inquiry by using a panel of nine investing tax exemption and tax
credit countries over the period 1982-2000, constituting more than 85% of
total US FDI inflows, and incorporating home country tax rates to analyse
two as yet unanswered questions. First, are corporate income tax rates an
important determinant of FDI in the US? Secondly, do investors from tax
credit countries differ significantly in their tax response relative to
those from tax exemption countries?
Journal: Applied Economics
Pages: 109-117
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447872
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447872
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:109-117
Template-Type: ReDIF-Article 1.0
Author-Name: Asier Minondo
Author-X-Name-First: Asier
Author-X-Name-Last: Minondo
Title: The disappearance of the border barrier in some European Union countries' bilateral trade
Abstract:
This paper estimates the tariff equivalent of the border barrier in each
bilateral trade among European Union (EU) countries. The results show that
there are large differences in the border barrier across EU countries'
bilateral trade. In some bilateral trade flows the border barrier has
almost disappeared, whereas in other cases it is still equivalent to a 75%
tariff. The results also show that some countries have low border barriers
in most of their bilateral trade flows with other EU members, whereas
other countries persistently present large border barriers.
Journal: Applied Economics
Pages: 119-124
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427601
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427601
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:119-124
Template-Type: ReDIF-Article 1.0
Author-Name: Winston Koh
Author-X-Name-First: Winston
Author-X-Name-Last: Koh
Author-Name: Roberto Mariano
Author-X-Name-First: Roberto
Author-X-Name-Last: Mariano
Author-Name: Yiu Kuen Tse
Author-X-Name-First: Yiu Kuen
Author-X-Name-Last: Tse
Title: Open vs. sealed-bid auctions: testing for revenue equivalence under Singapore's vehicle quota system
Abstract:
Using data from the auction of vehicle quota licenses in Singapore, we
study if revenue equivalence holds when the auction format was switched
from a sealed-bid format (May 1990 to June 2001) to an open bidding format
since July 2001. Our econometric analysis indicates the change in auction
format led to a change in bidding behavior. On average, the quota license
premium under the open bidding format is about US$1000 (about 7.5% of the
Category E license price in June 2001) lower, compared to the forecast
level that would have prevailed if there had been no change in the auction
format.
Journal: Applied Economics
Pages: 125-134
Issue: 1
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427916
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427916
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Handle: RePEc:taf:applec:v:39:y:2007:i:1:p:125-134
Template-Type: ReDIF-Article 1.0
Author-Name: Jian Yang
Author-X-Name-First: Jian
Author-X-Name-Last: Yang
Author-Name: Jaeun Shin
Author-X-Name-First: Jaeun
Author-X-Name-Last: Shin
Author-Name: Moosa Khan
Author-X-Name-First: Moosa
Author-X-Name-Last: Khan
Title: Causal linkages between US and Eurodollar interest rates: further evidence
Abstract:
This study examines causal linkages between US and Eurodollar interest
rates during 1983-2002. Recursive cointegration analysis shows that a
stable cointegration relationship between the two interest rates emerges
only since the early 1990s, when the Fed used federal funds rate targeting
and eliminated the reserve requirement on Eurocurrency deposits. The study
further reveals that bidirectional causality exists between the two rates
over the period of 1993 to 2002, while unidirectional causality from
Eurodollar rate to the US rate is found to exist over the period of 1983
to 1991. These findings consistently support increased interest rate
linkages especially since the early 1990s.
Journal: Applied Economics
Pages: 135-144
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428070
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428070
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:135-144
Template-Type: ReDIF-Article 1.0
Author-Name: Thorsten Egelkraut
Author-X-Name-First: Thorsten
Author-X-Name-Last: Egelkraut
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Author-Name: Bruce Sherrick
Author-X-Name-First: Bruce
Author-X-Name-Last: Sherrick
Title: Options-based forecasts of futures prices in the presence of limit moves
Abstract:
The reported analysis examines a simultaneous estimation option-based
approach to forecast futures prices in the presence of daily price limit
moves. The procedure explicitly allows for changing implied volatilities
by estimating the implied futures price and the implied volatility
simultaneously. Using futures and futures options data for three
agricultural commodities, it is found that the simultaneous estimation
approach accounts for the abrupt changes in implied volatility associated
with limit moves and generates more accurate price forecasts than
conventional methods that rely on only one implied variable.
Journal: Applied Economics
Pages: 145-152
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427478
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427478
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:145-152
Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Title: Manufacturing exports, mining exports and growth: cointegration and causality analysis for Chile (1960-2001)
Abstract:
This study examines the export-led growth hypothesis using annual time
series data from Chile in a production function framework. It addresses
the problem of specification bias under which previous studies have
suffered, and focuses on the impact of manufactured and mining exports on
productivity growth. In order to investigate if and how manufactured and
mining exports affect economic growth via increases in productivity, the
study uses Johansen cointegration technique. The estimation results can be
interpreted as evidence of productivity-enhancing effects of manufactured
exports and of productivity-limiting effects of mining exports.
Journal: Applied Economics
Pages: 153-167
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427965
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427965
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:153-167
Template-Type: ReDIF-Article 1.0
Author-Name: Jiawen Yang
Author-X-Name-First: Jiawen
Author-X-Name-Last: Yang
Title: Is exchange rate pass-through symmetric? Evidence from US imports
Abstract:
This study addresses the question of whether exchange rate pass-through
into the import price is symmetric between appreciation and depreciation
of the home currency. The dramatic increase of the dollar in the early
1980s and the subsequent decline provided a necessary setting for testing
whether there was a structural change in the exchange rate pass-through.
Examining import price data for 98 disaggregated SIC industries in the US
manufacturing sector and the US import price for all commodities, mixed
evidence is found regarding the stability of exchange rate pass-through.
Journal: Applied Economics
Pages: 169-178
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427320
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427320
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:169-178
Template-Type: ReDIF-Article 1.0
Author-Name: Jurgen Bitzer
Author-X-Name-First: Jurgen
Author-X-Name-Last: Bitzer
Author-Name: Andreas Stephan
Author-X-Name-First: Andreas
Author-X-Name-Last: Stephan
Title: A Schumpeter-inspired approach to the construction of R&D capital stocks
Abstract:
A new method for constructing R&D capital stocks is proposed and tested.
Following Schumpeter, the development of R&D capital stocks is modelled as
a process of creative destruction. Newly generated knowledge is assumed
not only to add to the existing R&D capital stocks but also, by displacing
old knowledge, to destroy part of that capital. This is in stark contrast
to the perpetual inventory method, which postulates a constant rate of
depreciation. We compare both methods by estimating the impact of R&D and
spillovers on output of 9 industries in 12 OECD countries, and find that
the new approach leads to more sensible and robust results.
Journal: Applied Economics
Pages: 179-189
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427973
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427973
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:179-189
Template-Type: ReDIF-Article 1.0
Author-Name: Jim Granato
Author-X-Name-First: Jim
Author-X-Name-Last: Granato
Author-Name: Melody Lo
Author-X-Name-First: Melody
Author-X-Name-Last: Lo
Author-Name: M. C. Sunny Wong
Author-X-Name-First: M. C. Sunny
Author-X-Name-Last: Wong
Title: A note on Romer's openness-inflation relation: the responsiveness of AS and AD to economic openness and monetary policy
Abstract:
Temple (2002) empirically challenges Romer's (1993) negative
openness-inflation relation on empirical grounds. This article links
economic openness to the slopes of aggregate supply (AS) and aggregate
demand (AD) to explain why the openness-inflation relation can be
ambiguous. Starting with a widely used assumption initiated by Romer
(1993) that more open economies face greater output inflation tradeoffs,
we demonstrate that greater output-inflation tradeoffs in more open
economies (reflected in the steeper AS) induce policymakers to adopt more
aggressive optimal monetary policy (reflected in the flatter AD).
Empirical results from 15 developed countries' data support our
theoretical explanation on the recent empirical failure in finding the
negative openness-inflation relation.
Journal: Applied Economics
Pages: 191-197
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427627
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427627
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:191-197
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Perez
Author-X-Name-First: Pedro
Author-X-Name-Last: Perez
Author-Name: Denise Osborn
Author-X-Name-First: Denise
Author-X-Name-Last: Osborn
Author-Name: Marianne Sensier
Author-X-Name-First: Marianne
Author-X-Name-Last: Sensier
Title: Business cycle affiliations in the context of European integration
Abstract:
We study affiliations for the countries of the European Economic and
Monetary Union (EMU) with Germany and the USA, using various business
cycle measures derived from quarterly real GDP. These measures are
Hodrick-Prescott and Baxter-King filtered series and annual growth rates.
By using rolling contemporaneous and maximum (over a short lead/lag
interval) correlations, we document increasing correlations of EMU
countries with Germany, with these typically being largest during the
1990s. We also document a strong leading role for the USA in relation to
these countries in the period since 1993, thereby correcting the fallacy
that the European business cycle was disjointed from the USA for most of
the 1990s.
Journal: Applied Economics
Pages: 199-214
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427924
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427924
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:199-214
Template-Type: ReDIF-Article 1.0
Author-Name: Carl Bonham
Author-X-Name-First: Carl
Author-X-Name-Last: Bonham
Author-Name: Byron Gangnes
Author-X-Name-First: Byron
Author-X-Name-Last: Gangnes
Author-Name: Ari Van Assche
Author-X-Name-First: Ari
Author-X-Name-Last: Van Assche
Title: Fragmentation and East Asia's information technology trade
Abstract:
This article studies the growth and determinants of information
technology (IT) trade in the Asia-Pacific region. We argue that the rise
of IT trade must be understood within the context of increasing vertical
fragmentation of production processes that has occurred over the past two
decades. To evaluate this empirically, we estimate a set of pooled
bilateral IT export equations for eight Asian countries, the USA and the
EU, where foreign direct investment (FDI) inflows are introduced as a
proxy for fragmentation. We apply a panel cointegration approach that
allows for heterogeneity in short-run dynamics and in fixed effects.
Consistent with production fragmentation, we find that the evolution of IT
trade can be explained in part by traditional income and relative price
effects but also by FDI inflows.
Journal: Applied Economics
Pages: 215-228
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427635
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427635
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:215-228
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Morana
Author-X-Name-First: Claudio
Author-X-Name-Last: Morana
Author-Name: Fabio Cesare Bagliano
Author-X-Name-First: Fabio Cesare
Author-X-Name-Last: Bagliano
Title: Inflation and monetary dynamics in the USA: a quantity-theory approach
Abstract:
In this article we investigate the long-run link between inflation and
money growth in the United States since 1960. A measure of the long-run
inflation trend is constructed, which bears the interpreation of
'monetary' inflation rate and is directly related to the excess nominal
money growth process (money growth less output growth), as postulated by
the quantity theory. Consistent with the memory characteristics of the
series, their fractional integration and cointegration properties are
taken into account in empirical modelling. The proposed measure is then
compared with several existing measures of 'core inflation', aimed at
capturing long-run inflation dynamics but unrelated to money growth. The
'monetary' long-run inflation rate performs well in out-of-sample
forecasting exercises especially over a 2-3-year horizon, yielding
valuable information to monetary policymakers.
Journal: Applied Economics
Pages: 229-244
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428047
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428047
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:229-244
Template-Type: ReDIF-Article 1.0
Author-Name: M. A. Garcia-Valinas
Author-X-Name-First: M. A.
Author-X-Name-Last: Garcia-Valinas
Author-Name: M. A. Muniz
Author-X-Name-First: M. A.
Author-X-Name-Last: Muniz
Title: Is DEA useful in the regulation of water utilities? A dynamic efficiency evaluation (a dynamic efficiency evaluation of water utilities)
Abstract:
The discussion about public utilities efficiency and its management has
become increasingly important in the last decades. We focus on the
distribution of water, which is one of the most important natural
resources (Marshall, 1879). This research shows the relationship between
efficiency and institutional factors such as management system. For this
purpose, we have data about some Spanish water utilities under different
provision systems, during the period 1985 to 2000. Using Data Envelopment
Analysis (DEA), we estimate potential cost savings in this context. We
will extend the results obtained by Thanassoulis (2000a, b), in attempt to
guide the regulation of this sector.
Journal: Applied Economics
Pages: 245-252
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428054
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428054
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:245-252
Template-Type: ReDIF-Article 1.0
Author-Name: K. Maris
Author-X-Name-First: K.
Author-X-Name-Last: Maris
Author-Name: K. Nikolopoulos
Author-X-Name-First: K.
Author-X-Name-Last: Nikolopoulos
Author-Name: K. Giannelos
Author-X-Name-First: K.
Author-X-Name-Last: Giannelos
Author-Name: V. Assimakopoulos
Author-X-Name-First: V.
Author-X-Name-Last: Assimakopoulos
Title: Options trading driven by volatility directional accuracy
Abstract:
Analysts have claimed over the last years that the volatility of an asset
is caused solely by the random arrival of new information about the future
returns from the underlying asset. It is a common belief that volatility
is of great importance in finance and it is one of the critical factors
determining option prices and consequently driving option-trading
strategies. This article discusses an empirical option trading methodology
based on efficient volatility direction forecasts. Although in most cases
accurate volatility forecasts are hard to obtain, forecasting the
direction is significantly easier. Increase in the directional accuracy
leads to profitable investment strategies. The net gain is depended on the
size of the changes as well; however successful volatility forecasts in
terms of directional accuracy was found to be sufficient for positive
results. In order to evaluate the proposed methodology weekly data from
CAX40, DAX and the Greek FTSE/ASE 20 stock indices were used.
Journal: Applied Economics
Pages: 253-260
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427999
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427999
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:253-260
Template-Type: ReDIF-Article 1.0
Author-Name: Tiziana Cuccia
Author-X-Name-First: Tiziana
Author-X-Name-Last: Cuccia
Author-Name: Roberto Cellini
Author-X-Name-First: Roberto
Author-X-Name-Last: Cellini
Title: Is cultural heritage really important for tourists? A contingent rating study
Abstract:
In this article we present the results of a contingent rating study
carried out on a sample of tourisits visiting Scicli, a Sicilian town
known for its baroque heritage. In particular, we focus on different
attributes of tourism products - namely, season, accommodation and
cultural heritage - to study how much each of these attributes weights in
tourists' preferences. We also study how the socio-demographic
characteristics of people affect their evaluation of the different
attributes of tourism products. The heritage endowment appears to be far
from being the most important factor; this result is consistent across
different socio-demographic subgroups of interviewed persons.
Journal: Applied Economics
Pages: 261-271
Issue: 2
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427981
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427981
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Handle: RePEc:taf:applec:v:39:y:2007:i:2:p:261-271
Template-Type: ReDIF-Article 1.0
Author-Name: WenShwo Fang
Author-X-Name-First: WenShwo
Author-X-Name-Last: Fang
Author-Name: Stephen Miller
Author-X-Name-First: Stephen
Author-X-Name-Last: Miller
Title: Exchange rate depreciation and exports: the case of Singapore revisited
Abstract:
This article revisits the weak relationship between exchange rate
depreciation and exports for Singapore, using a bivariate generalized
autoregressive conditional heteroscedasticity in mean model that
simultaneously estimates time-varying risk. The evidence shows that
depreciation does not significantly improve exports, but that exchange
rate risk significantly impedes exports. In sum, Singaporean policy makers
can better promote export growth by stabilizing the exchange rate rather
than generating its depreciation.
Journal: Applied Economics
Pages: 273-277
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438848
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438848
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:273-277
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: A unified approach to detecting unit root and structural break
Abstract:
In the proposed approach, eight alternative data-generating processes
(DGPs) are considered by combining a process with or without a unit root,
a process with or without a trend break and a process with or without an
innovation-variance break. It is determined on the basis of the selected
model using the Bayesian information criterion which DGP generates the
observed time series. The efficacy of the proposed approach is verified
using comprehensive simulations, including comparisons with two
conventional hypothesis-testing methods. The results of applying the
proposed method to output time series for 20 developed countries suggest
that 12 series have a trend break and 16 series have an
innovation-variance break.
Journal: Applied Economics
Pages: 279-289
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439044
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:279-289
Template-Type: ReDIF-Article 1.0
Author-Name: Hulya Ulku
Author-X-Name-First: Hulya
Author-X-Name-Last: Ulku
Title: R&D, innovation and output: evidence from OECD and nonOECD countries
Abstract:
This article uses data from 41 OECD and nonOECD (Organisation for
Economic Co-operation and Development) countries to examine the
predictions of nonscale endogenous growth theories that an increase in the
share of researchers in labour force leads to an increase in innovation
and innovation raises per capita output. The results show that an increase
in the share of researchers in labour force increases innovation only in
the large market OECD countries. Moreover, an increase in innovation
raises per labour GDP (Gross Domestic Product) in all nonOECD countries
except for low income countries, while raising it only in the high-income
OECD countries. These findings suggest that though the large market OECD
countries are the world leader in innovation, nonOECD countries benefit
more from it in promoting their growth.
Journal: Applied Economics
Pages: 291-307
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439002
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:291-307
Template-Type: ReDIF-Article 1.0
Author-Name: Qing Xiao
Author-X-Name-First: Qing
Author-X-Name-Last: Xiao
Author-Name: Michael Reed
Author-X-Name-First: Michael
Author-X-Name-Last: Reed
Title: Export and production growth: evidence from three major wheat exporters of Australia, Canada and the United States
Abstract:
This article investigates the robustness of the relationship between
export and production growth for three major wheat exporters: Australia,
Canada and the United States from 1966 to 2000. Combining production,
international trade and development theories, a four variable (production,
exports, producer price and imports) vector autoregressive moving average
(VARMA) model is developed for each country. The causality results show
that the hypothesis of export-led development is supported by these three
major players in the international wheat trade, though a bi-directional
causality is found for Canada and the USA. Variance decomposition and
impulse response functions are employed to further investigate the effects
of macroeconomic shocks.
Journal: Applied Economics
Pages: 309-319
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439010
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439010
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:309-319
Template-Type: ReDIF-Article 1.0
Author-Name: John Byers
Author-X-Name-First: John
Author-X-Name-Last: Byers
Author-Name: David Peel
Author-X-Name-First: David
Author-X-Name-Last: Peel
Author-Name: Dennis Thomas
Author-X-Name-First: Dennis
Author-X-Name-Last: Thomas
Title: Habit, aggregation and long memory: evidence from television audience data
Abstract:
Many economic outcomes appear to be influenced by habit or commitment,
giving rise to persistence. In cases where the decision is binary and
persistent, the aggregation of individual time series can result in a
fractionally integrated process for the aggregate data. Certain television
programmes appear to engender commitment on the part of viewers and the
decision to watch or not is clearly binary. We report an empirical
analysis of television audience data and show that these series can be
modelled as I(d) processes. We also investigate the proposition that
temporal aggregation of a fractionally-integrated series leaves the value
of d unchanged.
Journal: Applied Economics
Pages: 321-327
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428120
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428120
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:321-327
Template-Type: ReDIF-Article 1.0
Author-Name: Olcay Yucel Emir
Author-X-Name-First: Olcay Yucel
Author-X-Name-Last: Emir
Author-Name: Fatih Ozatay
Author-X-Name-First: Fatih
Author-X-Name-Last: Ozatay
Author-Name: Gulbin Sahinbeyoğlu
Author-X-Name-First: Gulbin
Author-X-Name-Last: Sahinbeyoğlu
Title: Effects of US interest rates and news on the daily interest rates of a highly indebted emerging economy: evidence from Turkey
Abstract:
It has been widely demonstrated that asset prices react sensitively to
macroeconomic news releases both in the industrialized countries and
emerging markets. However, there are contradicting results on the effects
of changes in interest rates of industrialized countries on asset prices
of emerging markets. In heavily indebted economies, in addition to these
factors, political news and announcements from international institutions
that may increase or decrease concerns about debt sustainability can
affect asset prices as well. This potential notwithstanding, there has
been relatively limited empirical work on the effects of such variables.
The objective of this study is to quantify the impact of all of these
factors on interest rates of a highly indebted emerging economy. Using
daily post-crisis data of the Turkish economy we show that both good and
bad political news, International Monetary Fund announcements, and
European Union related news significantly affected secondary market
government securities yields, whereas volatility of yields was affected
mainly by bad news releases. Changes in US Treasury bond rates and
'appetite' for risk of foreign investors did not affect government
securities yields in the period analysed.
Journal: Applied Economics
Pages: 329-342
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427270
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427270
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:329-342
Template-Type: ReDIF-Article 1.0
Author-Name: Yesim Gurbuz
Author-X-Name-First: Yesim
Author-X-Name-Last: Gurbuz
Author-Name: Thomas Jobert
Author-X-Name-First: Thomas
Author-X-Name-Last: Jobert
Author-Name: Ruhi Tuncer
Author-X-Name-First: Ruhi
Author-X-Name-Last: Tuncer
Title: Public debt in Turkey: evaluation and perspectives
Abstract:
The aim of this study is to analyse past and future sustainability of
total public debt in Turkey. The analysis is based on econometric studies
and simulations. The data are taken quarterly in order to take into
account intra annual effects important in Turkey, given the strong
volatility of the economy. The period covered is 1988 to 2002. The
econometric analysis rejects the hypothesis of the sustainability of
Turkish public debt in the last 15 years. The simulations show that to
reach an acceptable level of debt, Turkey has to solve its problem of
chronic inflation, stabilize its economy and adopt either a policy
freezing public spending or a very active fiscal policy.
Journal: Applied Economics
Pages: 343-359
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438889
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438889
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:343-359
Template-Type: ReDIF-Article 1.0
Author-Name: Quentin Chu
Author-X-Name-First: Quentin
Author-X-Name-Last: Chu
Author-Name: Deborah Pittman
Author-X-Name-First: Deborah
Author-X-Name-Last: Pittman
Author-Name: Jeng-Hong Chen
Author-X-Name-First: Jeng-Hong
Author-X-Name-Last: Chen
Title: Inflation or disinflation? Evidence from maturing US Treasury Inflation-Protected Securities
Abstract:
The prices of maturing US Treasury Inflation-Protected Securities (TIPS)
during the last 6-month coupon period reveal whether the market is
anticipating an inflationary or disinflationary regime. Against the
benchmark of the Treasury bill yield to adjust for the time value of
money, maturing TIPS prices represent a sequence of updated forecasts of
the consumer price index (CPI) to be used to determine the final single
cash flow on the maturity date. Under the assumption of risk-neutrality,
the sequence of forecasts is modelled as a martingale. Generalized method
of moments and regression analysis are used to test two martingale
properties of the CPI forecasts: (1) the unconditional mean of daily
changes in the CPI forecasts is zero and (2) serial correlations of the
daily changes in the CPI forecasts are zero. The test statistics reject
both martingale properties of the CPI forecasts implied in maturing TIPS
prices. A persistent upward movement of the CPI forecasts toward the
actual target CPI during the first quarter of 2002 implies the market was
then anticipating a disinflationary regime. One policy implication is that
time series behaviour of CPI forecasts can provide timely feedback to the
Federal Reserve Open Market Committee.
Journal: Applied Economics
Pages: 361-372
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438939
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438939
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:361-372
Template-Type: ReDIF-Article 1.0
Author-Name: Baichen Jiang
Author-X-Name-First: Baichen
Author-X-Name-Last: Jiang
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Title: Household food demand in rural China
Abstract:
This article explores rural household food consumption behaviour in China
using a large household data set from Jilin Province. Data are classified
into four main food groups—grain, vegetable products, animal
products and other foods. A household food demand system, incorporating
four household characteristics, is estimated using an LA-AIDS model,
assuming a three-stage budgeting procedure. Expenditure elasticities for a
range of food groups are estimated, with a particular focus on animal
products. The inclusion of household characteristics did not have a big
impact on the elasticity values in any of the three stages of the
budgeting process. The total expenditure elasticity for grain (Stage II)
was 0.64, suggesting substantial future growth in household demand for
fine grains such as rice and wheat, as per capita incomes continue to grow
in rural areas. The highest conditional and total expenditure elasticity
values were for the animal products (Stage II) group, 1.22 and 0.76,
respectively. Within this group the elasticities were highest for the meat
sub-group at 1.14 and 0.87, respectively, suggesting an almost
proportionate increase in demand as household incomes grow. Added demand
pressures from animal production will likely keep grain policy high on the
political agenda.
Journal: Applied Economics
Pages: 373-380
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428013
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428013
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:373-380
Template-Type: ReDIF-Article 1.0
Author-Name: Toshinobu Matsuda
Author-X-Name-First: Toshinobu
Author-X-Name-Last: Matsuda
Title: Linearizing the inverse quadratic almost ideal demand system
Abstract:
This article investigates the linear approximation to the inverse
quadratic almost ideal demand system (IQUAIDS), a recently introduced
flexible functional form with potential usefulness. Linearizing this
nonlinear model is of practical importance because nonstationary data,
which are likely to be used in inverse demand systems, can be handled more
properly in linear models. The IQUAIDS is linearized by replacing the two
aggregator functions with a number of alternative quantity indices and new
composite variables. The results of an application to Japanese fresh food
demand suggest that the IQUAIDS can be linearized with adequate accuracy
in terms of elasticities.
Journal: Applied Economics
Pages: 381-396
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600825779
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600825779
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:381-396
Template-Type: ReDIF-Article 1.0
Author-Name: Chengqi Wang
Author-X-Name-First: Chengqi
Author-X-Name-Last: Wang
Author-Name: Li Yu
Author-X-Name-First: Li
Author-X-Name-Last: Yu
Title: Do spillover benefits grow with rising foreign direct investment? An empirical examination of the case of China
Abstract:
Using data from the Chinese manufacturing industry for 2001, this article
examines the impacts of foreign presence on the performance of locally
owned Chinese firms. Our key result supports a curvilinear functional
form. Foreign penetration rates in excess of just about two-thirds of
industrial capital are associated with declining spillover benefits,
indicating the dominance of negative spillovers. The curvilinear
relationship is found to be particularly strong in labour-intensive
industries, contrasting with a standard linear relationship in
technology-intensive sectors. The finding of the complexity of spillover
effects challenges the laissez-faire view that 'the more inward foreign
direct investment (FDI), the better' and that inward FDI into all types of
domestic industry is equally valuable, in terms of performance benefits.
Our findings argue for policy measures to strengthen domestically owned
Chinese industry, to provide effective competition to foreign firms and to
absorb the benefits from spillovers more effectively.
Journal: Applied Economics
Pages: 397-405
Issue: 3
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428096
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428096
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Handle: RePEc:taf:applec:v:39:y:2007:i:3:p:397-405
Template-Type: ReDIF-Article 1.0
Author-Name: Oral Williams
Author-X-Name-First: Oral
Author-X-Name-Last: Williams
Author-Name: Olumuyiwa Adedeji
Author-X-Name-First: Olumuyiwa
Author-X-Name-Last: Adedeji
Title: Inflation dynamics in a small emerging market
Abstract:
This study investigates the determinants of inflation in the Dominican
Republic during 1991 to 2002, a period characterized by remarkable
macroeconomic stability and growth. By developing a parsimonious and
empirically stable error correction model using quarterly observations,
the study finds that inflation is explained by changes in monetary
aggregates, real output, foreign inflation and the exchange rate. Long-run
relationships in the money and traded goods markets are found to exist,
but only the disequilibrium from the money market exerts a significant
impact on inflation.
Journal: Applied Economics
Pages: 407-414
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439085
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439085
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:407-414
Template-Type: ReDIF-Article 1.0
Author-Name: R. Todd Jewell
Author-X-Name-First: R. Todd
Author-X-Name-Last: Jewell
Title: Prenatal care and birthweight production: evidence from South America
Abstract:
Research using US data has shown that increases in prenatal care have
positive effects on birthweight and that the existence of unobserved
health heterogeneity tends to reduce the measured effect of prenatal care.
This study extends extant research to the South American countries of
Bolivia, Brazil, Columbia and Peru using data from the demographic and
health surveys, finding a positive effect of increased prenatal care use
on birthweight. Furthermore, the largest marginal effect of increased
prenatal care use is found at low levels of usage. The results highlight
both the usefulness of existing methodologies for estimating the effect of
prenatal care on birthweight and the importance of extending these
methodologies to data from countries other than the USA.
Journal: Applied Economics
Pages: 415-426
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439028
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439028
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:415-426
Template-Type: ReDIF-Article 1.0
Author-Name: Francis Green
Author-X-Name-First: Francis
Author-X-Name-Last: Green
Author-Name: Steven McIntosh
Author-X-Name-First: Steven
Author-X-Name-Last: McIntosh
Title: Is there a genuine under-utilization of skills amongst the over-qualified?
Abstract:
Two theories of over-qualification are considered, namely mismatch,
whereby workers do not find the most appropriate jobs for their skills,
because of imperfect information or labour market rigidities, and
'heterogeneous workers', whereby individuals with the same qualifications
have different actual skill levels, so that they can be over-qualified in
terms of formal qualifications, while their skills are actually
appropriate for the jobs that they do. The evidence suggests that both
theories are relevant in certain situations.
Journal: Applied Economics
Pages: 427-439
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427700
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427700
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:427-439
Template-Type: ReDIF-Article 1.0
Author-Name: Camilo Sarmiento
Author-X-Name-First: Camilo
Author-X-Name-Last: Sarmiento
Author-Name: William Wilson
Author-X-Name-First: William
Author-X-Name-Last: Wilson
Title: Spatially correlated exit strategies in the baking industry
Abstract:
This article uses a unique data set to analyse economic factors that
explain firm exit and the interrelation across firms in space when
exiting. Results show the effectiveness of modelling spatial correlation
in a logit exit model. Indeed, in our application, reliable statistical
results could only be drawn from our data when including spatial
correlation in the model.
Journal: Applied Economics
Pages: 441-448
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438913
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438913
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:441-448
Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Veestraeten
Author-X-Name-First: Dirk
Author-X-Name-Last: Veestraeten
Title: The presence of target zone nonlinearities when narrower bands exist within official zones
Abstract:
The presence of target zone nonlinearities is generally refuted in
empirical research. We argue that this may be due to estimation being
performed vis-a-vis official limits when monetary authorities are in fact
targeting a narrower band. Estimation results for the Belgian and French
franc confirm that nonlinearities are present when narrower zones are
accounted for.
Journal: Applied Economics
Pages: 449-452
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428104
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428104
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:449-452
Template-Type: ReDIF-Article 1.0
Author-Name: Miao-Ling Chen
Author-X-Name-First: Miao-Ling
Author-X-Name-Last: Chen
Author-Name: Guan-Ru Chen
Author-X-Name-First: Guan-Ru
Author-X-Name-Last: Chen
Title: The effects of advertising on resale price maintenance
Abstract:
This research combines the market power and market competition
perspectives on advertising, under the framework of a generalized
theoretical model in minimum resale price maintenance (RPM), in order to
investigate the effects of advertising on RPM using the real options
approach. The effects of advertising on retail price will impact the value
of RPM, further, influence the incentive of manufacturers to impose RPM.
Through brand penetration and promotional pricing effects, advertising is
likely to influence RPM under the condition of retail price competition.
When the brand penetration effect is dominant, advertising will discourage
manufacturers from imposing RPM. Advertising will encourage manufacturers
to impose RPM when the promotional pricing effect is dominant. RPM not
only substitutes advertising, but also complements advertising.
Journal: Applied Economics
Pages: 453-459
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438863
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438863
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:453-459
Template-Type: ReDIF-Article 1.0
Author-Name: Giancarlo Marini
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Marini
Author-Name: Alessandro Piergallini
Author-X-Name-First: Alessandro
Author-X-Name-Last: Piergallini
Author-Name: Pasquale Scaramozzino
Author-X-Name-First: Pasquale
Author-X-Name-Last: Scaramozzino
Title: Inflation bias after the Euro: evidence from the UK and Italy
Abstract:
This article presents an indirect approach to investigate the possible
existence of measurement error bias in the harmonized index of consumer
prices for the UK and Italy. Our empirical results show that there is no
significant evidence of a bias for the UK or for Italy prior to the
introduction of the Euro. Since January 2002, however, the inflation rate
in Italy has been underestimated by at least 6 percentage points.
Journal: Applied Economics
Pages: 461-470
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438962
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438962
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:461-470
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements
Author-X-Name-First: Kenneth
Author-X-Name-Last: Clements
Author-Name: Yihui Lan
Author-X-Name-First: Yihui
Author-X-Name-Last: Lan
Title: Exchange rates, productivity, poverty and inequality
Abstract:
This article analyses differences in the wealth of nations by comparing
PPP-based cross-country incomes from the Penn World Table with those
derived from prevailing exchange rates. Using the Balassa (1964)-Samuelson
(1964) productivity-bias framework, we introduce the 'international
poverty line' and illustrate the implications for cross-country income
inequality. We demonstrate that our results are not inconsistent with the
previous literature when appropriately interpreted.
Journal: Applied Economics
Pages: 471-476
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439101
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:471-476
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Tongzon
Author-X-Name-First: Jose
Author-X-Name-Last: Tongzon
Author-Name: Lavina Sawant
Author-X-Name-First: Lavina
Author-X-Name-Last: Sawant
Title: Port choice in a competitive environment: from the shipping lines' perspective
Abstract:
The present era of globalization and regional competition has witnessed
the increasing influence of the global operations of the shipping lines on
port development and the declining monopoly of ports. This warrants the
need for an identification of the port selection criteria from the
perspective of the shipping lines. Hence, an attempt is made to determine
the port choice from the perspective of the shipping lines. Moreover, most
port operators have designed their strategies based on the 'stated
preference' of the shipping lines. However, the stated preference approach
can have several shortcomings such as the shipping lines would tend to
overstate their demands for services at the port. This directs for an
examination of the port choice of the shipping lines based on a revealed
preference approach. The 'revealed preference' approach aims at judging
the port choice of shipping lines purely from their 'actions' rather than
what they actually 'state'. The empirical study in this article is based
on a survey conducted among major shipping lines operating in Singapore
and Malaysia. The findings have shown port charges and wide range of port
services to be the only significant factors in their port choice.
Moreover, the results show no consistency between the stated and revealed
preferences of shipping lines.
Journal: Applied Economics
Pages: 477-492
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438871
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438871
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:477-492
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Arghyrou
Author-X-Name-First: Michael
Author-X-Name-Last: Arghyrou
Title: The price effects of joining the euro: modelling the Greek experience using non-linear price-adjustment models
Abstract:
The widely-held hypothesis that accession to the EMU has caused a
structural increase in Greek consumer prices is tested. No econometric
evidence of such an effect is found. There is strong evidence of (a)
multiple structural breaks in the process driving Greek equilibrium
consumer prices and (b) non-linear price adjustment. The findings explain
the post-EMU accession acceleration in Greek prices as normal,
equilibrium-restoring behaviour. They also have important policy
implications for the countries planning to join the euro in the
foreseeable future.
Journal: Applied Economics
Pages: 493-503
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427221
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427221
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:493-503
Template-Type: ReDIF-Article 1.0
Author-Name: Joan-Ramon Borrell
Author-X-Name-First: Joan-Ramon
Author-X-Name-Last: Borrell
Title: Pricing and patents of HIV/AIDS drugs in developing countries
Abstract:
This article provides empirical evidence on the impact of patents on drug
prices across developing countries. It uses sales data on human
immunodeficiency virus (HIV)/acquired immuno deficiency syndrome (AIDS)
drugs in a sample of 34 low- and middle-income countries between 1995 and
mid-2000. The main findings are that patents do shift drug prices up, drug
prices are correlated to per capita income levels and drug firms follow a
skimming strategy when pricing new HIV/AIDS drugs. That is, there is
across country and intertemporal price discrimination in the global drug
markets.
Journal: Applied Economics
Pages: 505-518
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438954
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438954
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:505-518
Template-Type: ReDIF-Article 1.0
Author-Name: J. Laurenceson
Author-X-Name-First: J.
Author-X-Name-Last: Laurenceson
Title: Financial sector regulation, bank franchise values and savings mobilization
Abstract:
Empirical studies show that financial development exhibits a positive
relationship with economic growth and the extent of poverty alleviation.
Implementing policies that best promote financial development - such as
mobilizing savings - are therefore, a matter of importance for all
developing countries. A recent theoretical proposal that draws inspiration
from the East Asian development experience hypothesises that by regulating
to augment bank franchise values (i.e. the capitalized value of expected
future profits accruing to banks), more savings can be mobilized compared
with pursuing liberalization policies. This article provides an empirical
test of this theory using a panel data set that covers 101 countries over
the period 1994 to 2001. The results are not supportive of the theoretical
proposal. In commenting on this result, it is noted that while intervening
in the financial sector might not boost the aggregate quantity of savings
mobilized, liberalization policies in developing countries should not
necessarily be expedited, as other considerations are also clearly
relevant.
Journal: Applied Economics
Pages: 519-525
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438905
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438905
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:519-525
Template-Type: ReDIF-Article 1.0
Author-Name: Fatih Ozatay
Author-X-Name-First: Fatih
Author-X-Name-Last: Ozatay
Title: Public sector price controls and electoral cycles
Abstract:
Public enterprise prices are important policy instruments in developing
economies. This is why public sector price polices constitute a key
element of stabilization programmes implemented in these economies.
However, this significance is not specific to stabilization episodes.
First, this study questions whether an opportunistic politician can
manipulate public prices to win elections. It analyses the impact of such
price controls on budget deficits and the repercussions of alternative
financing mechanisms of these deficits on the inflation rate and voters'
behaviour. It is shown that electoral inflation cycles are obtained under
domestic debt financing, whereas money financing does not permit such a
manipulative policy. Second, by focusing on data of the Turkish economy
for the 1987(1)-2003(12) period, empirical evidence for such manipulative
policies is given.
Journal: Applied Economics
Pages: 527-539
Issue: 4
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427346
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Handle: RePEc:taf:applec:v:39:y:2007:i:4:p:527-539
Template-Type: ReDIF-Article 1.0
Author-Name: Joan Costa-Font
Author-X-Name-First: Joan
Author-X-Name-Last: Costa-Font
Author-Name: Panos Kanavos
Author-X-Name-First: Panos
Author-X-Name-Last: Kanavos
Author-Name: Joan Rovira
Author-X-Name-First: Joan
Author-X-Name-Last: Rovira
Title: Determinants of out-of-pocket pharmaceutical expenditure and access to drugs in Catalonia
Abstract:
This article examines the determinants of the demand for pharmaceuticals
in Catalonia using the latest available official survey data, having
accounted for the individual differences in cost-sharing among consumers,
as well as the influence of self-medication. The article builds a model of
the (household) determinants of pharmaceutical expenditure and
consumption. The econometric application deals with the infrequency of
purchases and the nondistinction between out-of-pocket spending and drug
cost sharing. Our results suggest that income and the variables accounting
for the effect of cost sharing were significantly associated with drug use
but not drug expenditure. Furthermore, gender, health status and having
health insurance appear to be significant predictors. Access to pharmacies
increases both drug use and expenditure; self-medication also increases
drug expenditure out-of-pocket. These results are relevant for the entire
Spanish case where current reform proposals have recommended the
introduction of income-related (rather than age-related) co-payments. The
same applies to the need for controlling self-medication which results
from individual behaviour of consuming medicines for minor ailments
without a prescription and which can be acquired OTC and are priced
cheaply.
Journal: Applied Economics
Pages: 541-551
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438947
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438947
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:541-551
Template-Type: ReDIF-Article 1.0
Author-Name: Min-Hsin Huang
Author-X-Name-First: Min-Hsin
Author-X-Name-Last: Huang
Author-Name: Eugene Jones
Author-X-Name-First: Eugene
Author-X-Name-Last: Jones
Author-Name: David Hahn
Author-X-Name-First: David
Author-X-Name-Last: Hahn
Title: Determinants of price elasticities for private labels and national brands of cheese
Abstract:
An Almost Ideal Demand System model is developed and used to estimate
price elasticities for US cheese sold at retail. Growing consumption of
cheese coupled with fierce competition between private labels and national
brands serves as motivating factors for this study. Per capita consumption
of cheese grew by 75% during 1980-2004 and private labels captured a
rising share of this growth. Private labels today account for 35% of
market share; national brands, for the remaining 65%. Kraft accounts for
45% of national brands, but price increases for Kraft brands led to a
sizeable price gap between its brands and private labels. This gap helped
to stimulate growth of private labels. Marketing managers seek to
capitalize on both growing cheese sales and price gaps for brands.
Relevant information for marketing managers is consumer sensitivity to
price changes. This study uses 69 weeks of scanner data, with consumers
segmented by income levels to derive price elasticities for both lower-and
higher-income consumers. Results show lower-income consumers to be more
price sensitive. If large price gaps are maintained, the results suggest
continued growth of private labels. Yet, meta-analyses for this study
suggest that Kraft could lower the price gap and regain market share.
Journal: Applied Economics
Pages: 553-563
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439069
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439069
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:553-563
Template-Type: ReDIF-Article 1.0
Author-Name: Abhiman Das
Author-X-Name-First: Abhiman
Author-X-Name-Last: Das
Author-Name: Sangeeta Das
Author-X-Name-First: Sangeeta
Author-X-Name-Last: Das
Title: Scale economies, cost complementarities and technical progress in Indian banking: evidence from fourier flexible functional form
Abstract:
This article uses a multi-product Fourier flexible cost function
specification to investigate scale economies, cost complementarities and
technical progress of Indian banks during the post reform period 1992 to
2003. The empirical results indicate that there exist significant
economies of scale for all size classes of banks and there is no evidence
of diseconomies of scale, even for larger banks. In particular, for small
and medium-size banks, there is enough opportunity to increase output by
either increasing the scale or merging with other banks to improve the
average cost curve. The evidence is fairly robust even after controlling
the impact of asset quality and overall risk exposure in the cost function
specification. In addition, the statistical test confirms that the
industry cost function does not have a Translog form. The results do not
find any empirical evidence of cost complementarities between outputs. In
terms of technical progress, Indian banks have experienced significant
cost reduction which is as high as 5% for the recent period. However, the
effects due to the scale augmenting and nonneutral components are found to
be negligible.
Journal: Applied Economics
Pages: 565-580
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428138
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:565-580
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Moss
Author-X-Name-First: Charles
Author-X-Name-Last: Moss
Author-Name: Ashok Mishra
Author-X-Name-First: Ashok
Author-X-Name-Last: Mishra
Author-Name: Kenneth Erickson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Erickson
Title: Next year on the US farmland market: an informational approach
Abstract:
This study formulates an information measure for changes in asset values
and applies the formulation to farmland values in the United States for
1960 to 1999. The results indicate that changes in asset values contained
significant information following the Russian wheat sale in the early
1970s and the financial crisis in agriculture in the mid 1980s. Further,
information about preceding year's asset values largely explains the
regional distribution of current year's farmland values.
Journal: Applied Economics
Pages: 581-585
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447831
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447831
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:581-585
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Mitchell
Author-X-Name-First: Heather
Author-X-Name-Last: Mitchell
Author-Name: Mark Stewart
Author-X-Name-First: Mark
Author-X-Name-Last: Stewart
Title: A competitive index for international sport
Abstract:
This article constructs an index of competitiveness for different
international sports. This is done by finding the national characteristics
that are associated with sporting success and then noting the countries
that participate in the different sports. This enables the various sports
to be rated in terms of their competitiveness, thereby allowing judgements
to be made regarding how difficult it is to be successful in these sports.
Although a sports competitive index will no doubt be of interest to many
armchair sporting experts, an answer to this question is also of
importance when it comes to government policy with regard to funds
directed to sport.
Journal: Applied Economics
Pages: 587-603
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447740
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447740
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:587-603
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements
Author-X-Name-First: Kenneth
Author-X-Name-Last: Clements
Author-Name: E. A. Selvanathan
Author-X-Name-First: E. A.
Author-X-Name-Last: Selvanathan
Title: More on stochastic index numbers
Abstract:
There are three major approaches used to estimate index numbers. The
first is Fisher's test approach whereby indexes are judged on their
ability to satisfy certain criteria. The economic theory of index numbers
is the second approach and this deals with their foundations in utility
theory. The third approach is a less well-known methodology, but one which
is now attracting considerable attention, the stochastic approach which is
a new way of viewing index numbers in which uncertainty and statistical
ideas play a central role. While providing a point estimate for the index
number like the other two approaches, the stochastic approach additionally
provides the SE of the point estimate. This article enhances understanding
of stochastic index numbers by showing that they are formally equivalent
to the familiar optimal combination of forecasts with the individual
prices playing the role of n forecasts of the overall rate of inflation.
This leads to new analytical results on the impact of adding additional
information within the stochastic approach framework. We provide two
concrete examples of the sources of such additional information: (i) the
quantity theory of money; and (ii) the use of quantity data in addition to
price data. We also illustrate some of these theoretical results using
real data.
Journal: Applied Economics
Pages: 605-611
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439093
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:605-611
Template-Type: ReDIF-Article 1.0
Author-Name: David Madden
Author-X-Name-First: David
Author-X-Name-Last: Madden
Title: Tobacco taxes and starting and quitting smoking: does the effect differ by education?
Abstract:
This article uses duration analysis to investigate the role of tobacco
taxes in starting and quitting smoking. Applying a variety of parametric
duration models to a sample of Irish women, it finds that in general
tobacco taxes do influence starting and quitting smoking in the expected
direction. It also finds that the effect for starting differs by education
but in a nonmonotonic way, with the greatest effect for women with
intermediate levels of education. The results for quitting suggest the
greatest effect for women with the lowest level of education. These
results are unchanged when account is taken of unobserved heterogeneity.
Journal: Applied Economics
Pages: 613-627
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447898
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447898
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:613-627
Template-Type: ReDIF-Article 1.0
Author-Name: Shujie Yao
Author-X-Name-First: Shujie
Author-X-Name-Last: Yao
Author-Name: Chunxia Jiang
Author-X-Name-First: Chunxia
Author-X-Name-Last: Jiang
Author-Name: Genfu Feng
Author-X-Name-First: Genfu
Author-X-Name-Last: Feng
Author-Name: Dirk Willenbockel
Author-X-Name-First: Dirk
Author-X-Name-Last: Willenbockel
Title: WTO challenges and efficiency of Chinese banks
Abstract:
After joining the World Trade Organisation (WTO) in December 2001, China
was given 5 years to completely open up its banking market for
international competition. Chinese banks have been renowned for their
mounting nonperforming loans and low efficiency. Despite gradual reforms,
the banking system is still dominated by state ownership and encapsulated
monopolistic control. How to raise efficiency is a key to the survival and
success of domestic banks, especially the state-owned commercial banks.
Two important factors may be responsible for raising efficiency: ownership
reform and hard budget constraints. This article uses a panel data of 22
banks over the period 1995 to 2001, and employs a stochastic frontier
production function to investigate the effects of ownership structure and
hard budget constraint on efficiency. Empirical results suggest that
nonstate banks were 8-18% more efficient than state banks, and that banks
facing a harder budget tend to perform better than those heavily
capitalized by the state or regional governments. The results shed
important light on banking sector reform in China to face the tough
challenges after WTO accession.
Journal: Applied Economics
Pages: 629-643
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447799
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447799
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:629-643
Template-Type: ReDIF-Article 1.0
Author-Name: An-Sing Chen
Author-X-Name-First: An-Sing
Author-X-Name-Last: Chen
Author-Name: Tai-Wei Zhang
Author-X-Name-First: Tai-Wei
Author-X-Name-Last: Zhang
Title: Autocorrelation, structural breaks and the predictive ability of dividend yield
Abstract:
We study whether dividend yield (DY) can predict aggregate stock returns
while controlling for the effects of structural breaks in the parameters
and bias induced by autocorrelation in the predictor variable. To do so we
apply the Bai and Perron (BP) (1998, 2000) methodology to test for
structural breaks and the bias-adjusted predictability test of Lewellen
(2004). We show that although DY predicts market returns during the period
1946 to 1989, there exist 'natural' subsamples bounded by statistically
detectable structural breaks that can last for long periods of time (up to
11 years in duration) when DY does not show significant forecasting power.
This has important implications in that even if in the long-run DY
actually provides strong predictive ability, investors should be mentally
prepared for long dry spells of unpredictability with respect to DY.
Journal: Applied Economics
Pages: 645-652
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447708
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447708
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:645-652
Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Hung Sun
Author-X-Name-First: Chia-Hung
Author-X-Name-Last: Sun
Title: Economic integration, efficiency change and technological progress
Abstract:
This article examines the forces driving output growth in 21
manufacturing industries at the 3-digit level in Hong Kong during the
period 1976 to 1997. A varying frontier coefficients model is adopted that
relaxes the assumption of homogeneous application of the best practice
production technology. The varying coefficients frontier approach allows
the decomposition of output growth into factor contributions,
technological progress and efficiency change. Following the decomposition
framework, it facilitates the investigation of the relative roles of the
three components of output growth and of the manner in which technical
efficiency changed over time. The article finds evidence of moderate
annual TFP growth of 2.7% in Hong Kong manufacturing attributed mainly to
technological progress. This implies technical efficiency gained through
learning-by-doing has been insignificant, reflecting the loss of skilled
labour associated with manufacturing relocation to mainland China.
Journal: Applied Economics
Pages: 653-662
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447690
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447690
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:653-662
Template-Type: ReDIF-Article 1.0
Author-Name: Patricio Perez
Author-X-Name-First: Patricio
Author-X-Name-Last: Perez
Author-Name: Vicente Esteve
Author-X-Name-First: Vicente
Author-X-Name-Last: Esteve
Title: Trend breaks in the research and development process
Abstract:
This work examines the behaviour of the input and output measures of the
R&D process in the United States, Germany, France and the United Kingdom,
in the second half of the 20th century. The researcher and idea stock
series can be construed as stationary fluctuations around a trend
function, with a main breakpoint at the end of the 1960s. All the
countries exhibit slower growth after their last breaks that during the
decades preceding its first breaks. In this connection, the United States
and Germany appear to represent the end points in the range of incidence.
Journal: Applied Economics
Pages: 663-674
Issue: 5
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447666
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447666
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Handle: RePEc:taf:applec:v:39:y:2007:i:5:p:663-674
Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Anderson
Author-X-Name-First: Steffen
Author-X-Name-Last: Anderson
Author-Name: Glenn Harrison
Author-X-Name-First: Glenn
Author-X-Name-Last: Harrison
Author-Name: Morten Lau
Author-X-Name-First: Morten
Author-X-Name-Last: Lau
Author-Name: Rutstrom Elisabet
Author-X-Name-First: Rutstrom
Author-X-Name-Last: Elisabet
Title: Valuation using multiple price list formats
Abstract:
We examine the properties of a popular method for elicitation of
valuations from experimental subjects, the multiple price list format. The
main advantages of this format are that it is relatively transparent to
subjects and provides simple incentives for truthful revelation. The main
disadvantages are that it only elicits interval responses, and could be
susceptible to framing effects. We consider extensions to address and
evaluate these concerns in the context of eliciting willingness to pay for
products. We find that the multiple price list can elicit relatively
precise valuations for products, and that those valuations are robust to
possible framing effects. It therefore offers an attractive procedure for
eliciting valuations for goods.
Journal: Applied Economics
Pages: 675-682
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500462046
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462046
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:675-682
Template-Type: ReDIF-Article 1.0
Author-Name: Anindita Chakrabarti
Author-X-Name-First: Anindita
Author-X-Name-Last: Chakrabarti
Author-Name: Kausik Chaudhuri
Author-X-Name-First: Kausik
Author-X-Name-Last: Chaudhuri
Title: Antenatal and maternal health care utilization: evidence from northeastern states of India
Abstract:
This article examines the role played by the various socio-economic and
community level factors in determining the antenatal and maternal health
care utilization pattern using the data from the National Family Health
Survey carried out in India in 1998/99. Our analysis document that
autonomy enjoyed by women and exposure to media has a significant impact
on maternal heath care utilization even after controlling for other
attributes, particularly their education and household economic status.
Availability of a rural health facility in the village and other community
level programme propagates the utilization of health care.
Journal: Applied Economics
Pages: 683-695
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439036
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439036
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:683-695
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Parker
Author-X-Name-First: Simon
Author-X-Name-Last: Parker
Author-Name: Jonathan Rougier
Author-X-Name-First: Jonathan
Author-X-Name-Last: Rougier
Title: The retirement behaviour of the self-employed in Britain
Abstract:
We analyze the retirement behaviour of older self-employed workers, using
a life cycle framework and a multinomial logit model of dynamic employment
and retirement choices. Using data from the two-wave Retirement Survey, we
find that greater actual or potential earnings decrease the probability of
retirement among the self-employed. In contrast to employees, none of
gender, health or family circumstances appear to affect self-employed
retirement decisions. The dynamic analysis reveals that relatively few
employees and virtually no retirees switch into self-employment in later
life. The switches that do occur are motivated less by attempts to use
self-employment as a bridge job or 'stepping stone' to full retirement,
than by self-employment being a last resort for less affluent workers with
job histories of weak attachment to the labour market. We compare
self-employed and employee retirement behaviour and discuss the policy
implications of our results.
Journal: Applied Economics
Pages: 697-713
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447807
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447807
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:697-713
Template-Type: ReDIF-Article 1.0
Author-Name: Derek Braddorn
Author-X-Name-First: Derek
Author-X-Name-Last: Braddorn
Author-Name: Keith Hartley
Author-X-Name-First: Keith
Author-X-Name-Last: Hartley
Title: The competitiveness of the UK aerospace industry
Abstract:
Porter's five competitive forces model provides an analytical framework
for assessing the UK aerospace industry's competitiveness in this article.
Various statistical indicators are used to measure competitiveness, based
on published data at the industry and firm level, supplemented with
information from company interviews. The indicators include productivity,
output, firm size, development time-scales, labour hoarding, exports and
profitability. The empirical results of this article suggest that, over
the period 1980 to 2000, the UK aerospace industry improved its
competitiveness compared with the USA and the EU.
Journal: Applied Economics
Pages: 715-726
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500448391
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500448391
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:715-726
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Decker
Author-X-Name-First: Christopher
Author-X-Name-Last: Decker
Author-Name: Mark Wohar
Author-X-Name-First: Mark
Author-X-Name-Last: Wohar
Title: Do increases in petroleum product prices put the incumbent party at risk in US presidential elections?
Abstract:
This article investigates the impact of petroleum product prices on
recent United States' presidential elections by modelling the probability
of the incumbent presidential party losing a state (under the United
States' electoral college system) it had carried the previous presidential
election. The main finding is that the probability of the incumbent party
losing a state previously carried increases with petroleum product prices
but only in those states that have primarily energy consuming economies.
We also find that increases in the number of international conflicts,
increases in real state per-capita income growth, and increases in state
per capita grants-in-aid all reduce the likelihood of losing previously
carried states while higher taxation growth increases this likelihood.
Journal: Applied Economics
Pages: 727-737
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600735408
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735408
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:727-737
Template-Type: ReDIF-Article 1.0
Author-Name: Suchismita Mishra
Author-X-Name-First: Suchismita
Author-X-Name-Last: Mishra
Author-Name: Arun Prakash
Author-X-Name-First: Arun
Author-X-Name-Last: Prakash
Author-Name: Gordon Karels
Author-X-Name-First: Gordon
Author-X-Name-Last: Karels
Author-Name: Therese Pactwa
Author-X-Name-First: Therese
Author-X-Name-Last: Pactwa
Title: Skewness preference and the measurement of abnormal returns
Abstract:
In performing an empirical analysis of stock market returns there are
certain conditions under which the quadratic characteristic line (QCL)
will be the appropriate return-generating process compared to the linear
characteristic line (LCL). These conditions are whether the parameter
associated with the squared market term (the deviation from the mean) is
significantly different from zero and whether the return on the market
portfolio is asymmetrically distributed (or skewness is present).
Examining abnormal returns surrounding stock splits, we find that these
conditions hold for our data set. Having ascertained that the conditions
for QCL hold, we find that the cumulative average returns (CARs) obtained
using QCL dominate the CARs obtained using LCL in the event time and the
CAR space for the dividend-increase sub-sample. Furthermore, the
standardized abnormal returns for the QCL model are significantly
different than those obtained using the LCL model. We find that neither
the LCL nor the QCL paradigm reveals any statistically significant
abnormal return for the dividend-decrease group. However, for the
dividend-decrease group, the CARs for the LCL model dominate the CARs for
the QCL model. The standardized abnormal returns for the QCL model are
also significantly different than those of the LCL model. Using QCL, we
find support for the signalling hypothesis of dividends. We also find that
the extent of investor reaction obtained using QCL is statistically
significantly different than that obtained using the LCL.
Journal: Applied Economics
Pages: 739-757
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439077
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439077
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:739-757
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Strobel
Author-X-Name-First: Frank
Author-X-Name-Last: Strobel
Title: Southeast Asian monetary integration: a real options perspective
Abstract:
We examine the real option implicit in countries' decisions of whether to
join a monetary union and calibrate our theoretical model for the core
ASEAN/AFTA group of Indonesia, Malaysia, Philippines, Singapore and
Thailand. None of the countries would be prepared to join a monetary union
amongst them at present, and most have low to negligible probabilities of
ever wanting to do so.
Journal: Applied Economics
Pages: 759-763
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428005
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428005
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:759-763
Template-Type: ReDIF-Article 1.0
Author-Name: Shailendra Gajanan
Author-X-Name-First: Shailendra
Author-X-Name-Last: Gajanan
Author-Name: D. Malhotra
Author-X-Name-First: D.
Author-X-Name-Last: Malhotra
Title: Measures of capacity utilization and its determinants: a study of Indian manufacturing
Abstract:
We estimate Capacity Utilization (CU) rates in for selected industries in
Indian manufacturing for the 20-year period 1976-1996. We estimate a
generalized Leontief variable cost function, with capital as a quasi fixed
input, to derive our CU measures, using error-component techniques. We
note substantial variations in CU both across industries and over time. In
general, we find that CU rates were higher in the earlier time-period,
dropped in the mid-80s and started rising again in the early 90s. CU rates
in our analysis are sensitive to input prices with the sole exception of
the price of labor. We also confirm the standard result that variations in
demand are a significant driving force for variations in CU. We find that
CU is positively related to the magnitude of labor intensity in
production. This holds for both between-industries and within-industries.
Empirical results also indicate that traditional measures of CU such as
minimum capital output ratio and peak-to-peak are not appropriate proxies
for the short-run decision making of the firm regarding CU. As compared to
the estimates derived from the choice-theoretic framework, we find that
the traditional measures exhibit substantial bias.
Journal: Applied Economics
Pages: 765-776
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447732
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447732
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:765-776
Template-Type: ReDIF-Article 1.0
Author-Name: John Whitehead
Author-X-Name-First: John
Author-X-Name-Last: Whitehead
Author-Name: Richard Aiken
Author-X-Name-First: Richard
Author-X-Name-Last: Aiken
Title: Temporal reliability of willingness to pay from the National Survey of Fishing, Hunting and Wildlife-Associated Recreation
Abstract:
The US Fish and Wildlife Service's (USFWS) National Survey of Fishing,
Hunting and Wildlife-Associated Recreation (FHWAR) has been a source of
information on wildlife-related recreation since 1955. The contingent
valuation method has been used to estimate willingness to pay for
recreation trips in the 1980, 1985, 1991, 1996 and 2001 surveys. However,
relatively little comparative analysis over time has been performed.
Similar value elicitation formats were used in the 1991 and 1996 surveys
for bass and trout fishing, deer hunting and nonconsumptive wildlife
recreation. We statistically analyze these data to assess the temporal
reliability of the willingness to pay. We control for the effects of trip
quality and socioeconomic variables and find that willingness to pay is
significantly lower in 1996 for each activity. A subtle, but important,
change in the 1996 question format may drive the result of lower
willingness to pay.
Journal: Applied Economics
Pages: 777-786
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438996
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438996
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:777-786
Template-Type: ReDIF-Article 1.0
Author-Name: Santiago Budria
Author-X-Name-First: Santiago
Author-X-Name-Last: Budria
Author-Name: Pedro Telhado Pereira
Author-X-Name-First: Pedro Telhado
Author-X-Name-Last: Pereira
Title: The wage effects of training in Portugal: differences across skill groups, genders, sectors and training types
Abstract:
This article investigates the determinants and wage effects of training
in Portugal. In a first stage, we show that there are considerable
differences in training participation across groups of workers, with elder
and low educated individuals participating substantially less. In a second
stage, we show that training has a positive and significant impact on
wages. The estimated wage return is about 30% for men and 38% for women.
Discriminating between levels of education and working experience and the
public and private sector reveals important differences across categories
of workers. We find that women, low educated workers and workers with long
working experience earn larger returns from training. The average effect
of training is similar in the private sector and the public sector.
However, differences across experience groups are larger in the private
sector, while differences across education groups are larger in the public
sector. We use three alternative classifications of training activities
and find that training in the firm, training aimed to improve skills
needed at the current job and training with duration less than a year are
associated to larger wage gains.
Journal: Applied Economics
Pages: 787-807
Issue: 6
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447757
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447757
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Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:787-807
Template-Type: ReDIF-Article 1.0
Author-Name: Oguzhan Dincer
Author-X-Name-First: Oguzhan
Author-X-Name-Last: Dincer
Title: The effects of property rights on economic performance
Abstract:
This study augments the neoclassical growth model proposed by Mankiw et
al. (1992) to analyse the effects of the property rights protection on the
levels of economic performance, measured by per capita gross domestic
product (GDP), across countries. The augmented model predicts that (1) the
accumulation of physical and human capital and therefore the level of per
capita GDP in a country, is positively related with the degree of property
rights protection as well as with the saving rates and (2) the effects of
the saving rates on the level of per capita GDP in a country are
positively related with the degree of property rights protection.
Empirical evidence shows that the predictions of the augmented model are
consistent with the variations in the levels of per capita GDP across
countries.
Journal: Applied Economics
Pages: 825-837
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461964
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461964
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:825-837
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel
Author-X-Name-First: Rajeev
Author-X-Name-Last: Goel
Title: Costs of smoking and attempts to quit
Abstract:
Using recent cross-sectional state-level data for the US, this article
examines smoking quitting behaviour by smokers. In particular, we uniquely
focus on how the costs of smoking, both direct and indirect costs, induce
smokers to quit. Results show that the price of cigarettes and home
smoking restrictions are the primary thrusts behind smokers' quit
decision. The indirect costs due to workplace smoking restrictions,
medical costs and a lack of insurance do not seem to significantly matter.
The habit-forming effect of cigarettes is shown to lead to greater quit
attempts. Policy implications are discussed.
Journal: Applied Economics
Pages: 853-857
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439119
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439119
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:853-857
Template-Type: ReDIF-Article 1.0
Author-Name: Giuliana Battisti
Author-X-Name-First: Giuliana
Author-X-Name-Last: Battisti
Author-Name: P. Stoneman
Author-X-Name-First: P.
Author-X-Name-Last: Stoneman
Title: The prices of material and intermediate inputs in UK manufacturing: identifying the contributions of world prices and domestic factor costs
Abstract:
In this article, we explore the patterns and determinants of the prices
of raw material and intermediate inputs (MIIs) to UK manufacturing as
measured by the net (n) and gross (g) producer price indexes of materials
and fuels (PIMF). Despite the importance of MII in total manufacturing
costs their prices have been little studied. It is shown that these prices
are Granger independent of the demand for such inputs and thus a simple
cost based model of price determination is constructed. This model
forecasts that MII prices are functions of world prices for oil,
commodities and semi-manufactured products intermediated by exchange rates
and duties, domestic factor prices and a trend reflecting domestic
technical change, changes in mark ups and change in weights. By the means
of an error correction representation it is found that PIMFn and PIMFg, in
the long and short-run, are more sensitive to overseas-determined prices
(of oil, commodities and semi-manufactured products) than domestically
determined prices (labour, capital and the trend). It may be argued that
to some considerable degree therefore the prices of material and
intermediate inputs in UK manufacturing will not be particularly sensitive
to policy actions.
Journal: Applied Economics
Pages: 859-882
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461832
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461832
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:859-882
Template-Type: ReDIF-Article 1.0
Author-Name: Jer-Shiou Chiou
Author-X-Name-First: Jer-Shiou
Author-X-Name-Last: Chiou
Author-Name: Pei-Shan Wu
Author-X-Name-First: Pei-Shan
Author-X-Name-Last: Wu
Author-Name: Antony Chang
Author-X-Name-First: Antony
Author-X-Name-Last: Chang
Author-Name: Bor-Yi Huang
Author-X-Name-First: Bor-Yi
Author-X-Name-Last: Huang
Title: The asymmetric information and price manipulation in stock market
Abstract:
The interaction between asymmetrically informed traders has been mostly
investigated in theoretical frameworks. Not only there are relatively few
empirical studies but, if any, the mostly focus on cross-sectional
analysis and use very short samples. In this study, we blend theoretic
with empirical, and propose a new signalling system of turning points in
the economy to examine the extent of volatility of these markets relative
to their tranquil periods. The signalling system proposed here is based on
the Markov-switching model. Differing from the existing literatures, the
study employs three phases and time-varying transition probability, and
captures the states of volatility. After examining the causality between
high volatility and foreign portfolio investment (FPI) by using moving
average and generalized autoregressive conditional heteroskedasticity, the
portfolio's profitability of FPI and individual investors in different
periods are compared. Finally, the investigation of FPI's leading effect
is studied.
Journal: Applied Economics
Pages: 883-891
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500462038
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462038
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:883-891
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Cortinhas
Author-X-Name-First: Carlos
Author-X-Name-Last: Cortinhas
Title: Intra-industry trade and business cycles in ASEAN
Abstract:
A new resolve for both increased economic integration and monetary and
exchange rate cooperation has started to emerge in the Association of
Southeast Asian Nations (ASEAN), especially since the 1997-1998 Asian
financial crisis. According to the optimum currency area theory, the
degree of trade integration is one of the most important criteria for
joining a currency union. The large increase in intra-ASEAN trade in
recent years raises the question of whether the ASEAN countries are
becoming better prepared to form a currency union. This article sets to
test whether the recorded increase in intra-ASEAN trade is leading the
ASEAN members to closer economic integration and thus to better satisfy
the criteria for a common currency. Two separate models are estimated for
that purpose. First, a variation of the model of Frankel and Rose (1997)
was estimated for the ASEAN members. Next, a new panel data methodology
was conducted. The results with our own model were very significant and
robust when four of the ASEAN5 countries were considered, and showed a
clear positive correlation between intra-industry trade and business cycle
synchronization in ASEAN. This result has important implications for the
prospects of the creation of a common currency in the region.
Journal: Applied Economics
Pages: 893-902
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461907
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461907
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:893-902
Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Lin Tao
Author-X-Name-First: Hung-Lin
Author-X-Name-Last: Tao
Author-Name: Chia-Hung Li
Author-X-Name-First: Chia-Hung
Author-X-Name-Last: Li
Title: The impact of sectoral shifts and the aggregate labour market on unemployment duration
Abstract:
This study investigates the effects of sectoral shifts among industries
on unemployment duration. These effects are decomposed into two
subeffects: the overall effect and the specific industrial effect. The
former is equal for all of the unemployed in all industries, while the
latter depends on the tightness of the demand for labour of the industry
in question. In addition, the impact of the aggregate labour market on
unemployment duration is also explored. The empirical results show that
most of the overall and all of the specific effects are significant,
indicating that the sectoral shifts among industries as well as the
aggregate labour market do in fact impact unemployment duration, and that
the effects on unemployment duration vary in terms of their tightness in
the different industrial labour markets.
Journal: Applied Economics
Pages: 915-926
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461923
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461923
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:915-926
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Garcia-Iglesias
Author-X-Name-First: Jesus
Author-X-Name-Last: Garcia-Iglesias
Title: How the European Central Bank decided its early monetary policy?
Abstract:
The main goal of this paper is to detect the mechanisms that should
rationally stimulate the decision making-policies of the European Central
Bank (ECB). This is carried out under the framework of theoretical
principles of interest rate rules. Firstly, we deduce a set of logically
advisable guidelines for the strategy actually developed by this central
bank. Then we contrast a wide set of hypotheses with reference to those
variables the ECB takes into account on deciding its monetary policy, with
a flexible treatment regarding the number of months of advance or delay in
the explanatory variables. The results lead us to the conclusion that the
ECB, besides adopting a smooth strategy, especially bears in mind the
expected core inflation rate, with a reaction coefficient adjusted to that
initially proposed by Taylor. The economic growth rate, though it has a
significant positive coefficient, matters relatively little and is
backward looking. Finally, we evaluate up to what point the behaviour of
the ECB is assimilative to an inflation targeting framework, solving this
question affirmatively.
Journal: Applied Economics
Pages: 927-936
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461931
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461931
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:927-936
Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Title: Structure, conduct and performance: a simultaneous equations investigation for the Brazilian manufacturing industry
Abstract:
The article investigated structure-conduct-performance (SCP)
relationships in the context of the Brazilian manufacturing industry in
1996. For that purpose, it considered a system with four equations
pertaining concentration, advertising, R&D and profitability that was
estimated with simultaneous equation models. In addition to the usual
explanatory variables proxying barriers to entry and demand conditions,
the article considered organizational practices and incentive schemes
variables. The evidence indicated an important role for variables related
to barriers to entry in affecting market structure, an important and
nonlinear effect of concentration on advertising, a relevant impact of
firm-size on the propensity to exert R&D effort and finally a significant
positive impact of concentration on profitability, and were similar to the
previous evidence for developed countries. Additionally, no important
roles were detected for organizational practices and incentive schemes on
the SCP relationships.
Journal: Applied Economics
Pages: 937-942
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461949
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461949
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:937-942
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Tasiran
Author-X-Name-First: Ali
Author-X-Name-Last: Tasiran
Author-Name: Kerem Tezic
Author-X-Name-First: Kerem
Author-X-Name-Last: Tezic
Title: Early labour-market experiences of second-generation immigrants in Sweden
Abstract:
This article investigates second generation immigrant's early
labour-market performances in Sweden. To study their labour-market success
we estimate dynamic transition rate models-Cox type proportional hazards,
in a competing risk framework using register based panel-data set. Our
results reveal that parental resources affect not only second-generation
immigrants' continuing education but also their later labour-market
success. The study verifies that finding a job is difficult for
second-generation immigrants and the significant unobserved-heterogeneity
parameter estimate may indicate discrimination. As a whole,
second-generation immigrants have worse labour-market performances
compared to their native-born counterparts.
Journal: Applied Economics
Pages: 809-824
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461915
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461915
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:809-824
Template-Type: ReDIF-Article 1.0
Author-Name: Roger White
Author-X-Name-First: Roger
Author-X-Name-Last: White
Title: Immigrant-trade links, transplanted home bias and network effects
Abstract:
Macro-level data for the US and 73 trading partners spanning the years
1980 to 2001 is used with a gravity specification to investigate the
influence of immigration on bilateral trade. Prior research has identified
immigrant stocks as a significant determinant of trade; however, this
study indicates that the US immigrant-trade link is driven by immigration
from relatively low income countries. A 10% increase in the immigrant
stock is found to generate respectively 4.7 and 1.5% increases in domestic
imports from and exports to the typical low income home country. The
observed link is decomposed into two hypothesized channels-network effects
and transplanted home bias. Considerable variation in per-immigrant trade
effects is found across home countries: imports from the typical low
income home country are estimated to increase by up to $2057 due to
transplanted home bias and by as much as $2967 as a result of network
effects, while exports rise by up to $910 as a result of networks.
Journal: Applied Economics
Pages: 839-852
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447849
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447849
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:839-852
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chih Lee
Author-X-Name-First: Ming-Chih
Author-X-Name-Last: Lee
Author-Name: Wan-Hsiu Cheng
Author-X-Name-First: Wan-Hsiu
Author-X-Name-Last: Cheng
Title: Correlated jumps in crude oil and gasoline during the Gulf War
Abstract:
This article employs a bivariate poisson jump model to investigate the
relationship between the volatility of crude oil and gasoline especially
during the period of the Gulf War. We find that greater jumps occurring in
crude oil returns will appear in gasoline returns at the same time, but
the magnitude of the co-movements in volatility falls. The covariance is
relatively smaller in the Second Gulf War vs. the first conflict. The
volatility of crude oil is of significantly high levels during periods of
the war, yet the volatility of gasoline is not as sensitive as crude oil,
particularly in the second conflict. Furthermore, the jump that occurred
by the war did not lead both spot prices to a high persistent level for a
long period, which fits the feature of the jump models. All these findings
are important to market traders and hedging strategies.
Journal: Applied Economics
Pages: 903-913
Issue: 7
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500474249
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474249
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Handle: RePEc:taf:applec:v:39:y:2007:i:7:p:903-913
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Title: Estimating the stock of postwar Dutch postal stamps
Abstract:
This article seeks to find an answer to the question: 'How many stamps
are still around, given that we know their prices at issue, the current
price and the amount then issued?' For this purpose, I develop a simple
statistical model, the parameters of which are estimated for over 1000
postwar Dutch stamps. One finding is that some stamps are very scarce,
that is, less than 100 copies must be around.
Journal: Applied Economics
Pages: 943-946
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840701243641
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701243641
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:943-946
Template-Type: ReDIF-Article 1.0
Author-Name: Saang Joon Baak
Author-X-Name-First: Saang Joon
Author-X-Name-Last: Baak
Author-Name: M. A. Al-Mahmood
Author-X-Name-First: M. A.
Author-X-Name-Last: Al-Mahmood
Author-Name: S. Vixathep
Author-X-Name-First: S.
Author-X-Name-Last: Vixathep
Title: Exchange rate volatility and exports from East Asian countries to Japan and the USA
Abstract:
The purpose of this article is to investigate the impact of exchange rate
volatility on exports in four East Asian countries (Hong Kong, South
Korea, Singapore, and Thailand). Specifically, this article aims at
determining whether the bilateral real exchange rate volatility between an
East Asian country and its trading partner negatively affects the exports
of the East Asian country. Considering the dominant roles of the USA and
Japan as trading partners of those East Asian countries, this article
focuses on the quarterly export volumes of East Asian countries to the US
and Japan for the period from 1981 to 2004. Except for the case of Hong
Kong's exports to Japan, cointegration tests and estimations of error
correction models indicate exchange rate volatility has negative impacts
on exports either in the short-run or in the long-run, or both. On the
other hand, the real GDP of importing countries and depreciation of real
bilateral exchange rates turn out, in general, to have positive effects.
Of special interest is the finding that the impact of the exchange rate
volatility does not show any stylized differences depending on whether the
importing country is Japan or the USA, even though dollar invoicing
dominates in East Asia.
Journal: Applied Economics
Pages: 947-959
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500474231
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474231
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:947-959
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Abera Gelan
Author-X-Name-First: Abera
Author-X-Name-Last: Gelan
Title: Real and nominal effective exchange rates for African countries
Abstract:
The real effective exchange rate is an index that is used to measure
international competitiveness of a country. While the International
Monetary Fund constructs and publishes the index for all industrial and
some newly industrialized countries, the African nations receive no such
attention. In this article we construct quarterly indexes of real and
nominal effective exchange rates over the 1971I-2004III period for 21
African countries. We hope by publishing this data set, more research
attention will be given to these countries. As an application, we test for
the stationarity of the real effective rates to show that the Purchasing
Power Parity theory holds only in four of our 21 cases.
Journal: Applied Economics
Pages: 961-979
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447922
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447922
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:961-979
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Wilson
Author-X-Name-First: Peter
Author-X-Name-Last: Wilson
Author-Name: Keen Meng Choy
Author-X-Name-First: Keen Meng
Author-X-Name-Last: Choy
Title: Prospects for enhanced exchange rate cooperation in East Asia: some preliminary findings from generalized PPP theory
Abstract:
The Asian financial crisis increased economic disparities in the East
Asian (EA) region, thus making monetary integration more difficult, but
rekindled political interest in Asian monetary and exchange rate
cooperation. This article applies the theory of Generalized Purchasing
Power Parity (G-PPP), which looks at the behaviour of long-run real
exchange rates, to assess the potential for an optimum currency area (OCA)
among a subset of EA countries based on five of the more advanced members
of the Association of Southeast Asian Nations (ASEAN5). Our findings
suggest little support for an OCA for ASEAN5 as a bloc prior to the Asian
financial crisis and mixed results in the post-crisis period. In
particular, asymmetries in the way countries adjust to shocks and low or
insignificant speeds of adjustment were found. Thus, although the
application of single OCA criteria is notoriously demanding and our tests
apply to only one of the many criteria for the successful formation of an
OCA, we cannot find persuasive evidence that ASEAN5 as a group constitute
a potential currency area with either the USA or Japan, even when the
'noisy' period of the Asian financial crisis is omitted.
Journal: Applied Economics
Pages: 981-995
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500497042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500497042
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:981-995
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Marquez de la Cruz
Author-X-Name-First: Elena Marquez de la
Author-X-Name-Last: Cruz
Author-Name: Ana Martinez-Canete
Author-X-Name-First: Ana
Author-X-Name-Last: Martinez-Canete
Author-Name: Ines Perez-Soba Aguilar
Author-X-Name-First: Ines Perez-Soba
Author-X-Name-Last: Aguilar
Title: Intertemporal preference parameters for some European monetary union countries
Abstract:
In the European Monetary Union, the estimation and analysis of preference
parameters in its members is of special interest because possible
differences could help us to understand why a common monetary policy could
have different effects on the different economies involved. In this
article, we have focused our attention on the elasticity of intertemporal
substitution, one of the key preference parameters in intertemporal
macroeconomic models. Several studies have shown a possible
underestimation of such elasticity for different countries. It is common
practice to estimate the parameter using only nondurable goods and
services consumption data, without referring to the flow of services
generated by durable consumption. This is only admissible if the
intratemporal utility can be separated among the different consumption
components. Our first objective is, therefore, to test the assumption of
intratemporal separability for a selection of European countries (Germany,
Spain and France), and then to analyse the effect of durable consumption
on the estimated values of the intertemporal elasticity of substitution of
these countries, our ultimate goal. Knowledge of such elasticity will
enable us to characterise how saving in these economies reacts to
variations in the real interest rate.
Journal: Applied Economics
Pages: 997-1011
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500462012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462012
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:997-1011
Template-Type: ReDIF-Article 1.0
Author-Name: HuiChen Chiang
Author-X-Name-First: HuiChen
Author-X-Name-Last: Chiang
Title: Commercial loan borrower's optimal borrowing and prepayment decisions under uncertainty
Abstract:
We model a firm which faces continuing stochastic money needs and
fluctuating interest rates. The borrower minimizes the expected present
value of the sum of interest payments and prepayment penalty costs subject
to a liquidity constraint. Since contingent opportunities are absent from
the model, we find (i) the firm should not inventory cash, (ii) the firm
should prepay the maximum amount possible if it prepays at all.
Journal: Applied Economics
Pages: 1013-1020
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461972
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461972
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1013-1020
Template-Type: ReDIF-Article 1.0
Author-Name: Dan Axelsen
Author-X-Name-First: Dan
Author-X-Name-Last: Axelsen
Author-Name: Dan Friesner
Author-X-Name-First: Dan
Author-X-Name-Last: Friesner
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Author-Name: Hal Snarr
Author-X-Name-First: Hal
Author-X-Name-Last: Snarr
Title: Welfare recipient work choice and in-kind benefits in Washington state
Abstract:
We analyze the work choice of welfare recipients. Potential welfare
recipients compare their on and off welfare utility from after-tax income
and in-kind benefits via employment or welfare, and choose whether to
work. Our null hypothesis, which we reject, is that benefits affect only
the decision to work or not, not the hours worked, which will depend on
wages. Using Temporary Assistance for Needy Families (TANF) administrative
data from Washington state, we find that employer provided health
insurance and child care subsidies significantly raise exit rates of TANF
recipients and induce greater work effort. Other work inducing factors
include wages and the Earned Income Tax Credit, while increased levels of
Medicaid, Food Stamps and the income guarantee increase welfare
dependency.
Journal: Applied Economics
Pages: 1021-1036
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461865
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461865
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1021-1036
Template-Type: ReDIF-Article 1.0
Author-Name: J. W. Fedderke
Author-X-Name-First: J. W.
Author-X-Name-Last: Fedderke
Author-Name: J. M. Luiz
Author-X-Name-First: J. M.
Author-X-Name-Last: Luiz
Title: Fractionalization and long-run economic growth: webs and direction of association between the economic and the social -- South Africa as a time series case study
Abstract:
Recent cross-sectional growth studies have found that ethnolinguistic
fractionalization is an important explanatory variable of long-run growth
performance. In the present article, we follow the call of earlier studies
to conduct a more detailed clinical analysis of the growth experience of a
specific country. South Africa constitutes an interesting case in which to
explore these questions. The results of this study provide important
nuance to the existing body of evidence. We find that fractionalization is
subject to strong change over time. In addition, we find strong evidence
of webs of association between the various social, political and
institutional dimensions. Thus various forms of social cleavage tend to go
hand in hand, which presents the danger of spurious inference of
association. Further, the direction of association in the preponderance of
cases runs from economic to social, political and institutional variables,
rather than the other way around. However, there remain significant
impacts from some, but only some fractionalization indexes on economic
growth. Which social cleavage, when, how and for what period of time will
depend on the historical path of specific societies.
Journal: Applied Economics
Pages: 1037-1052
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461899
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461899
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1037-1052
Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Title: Determinants of firm start-up size in the Brazilian industry: an empirical investigation
Abstract:
The article investigates the determinants of newly created industrial
establishments in Brazil in 1997 taking as reference explanatory variables
referring to market structure and industry dynamics, stronger effects are
detected for larger firms. Minimum efficient scale, industry size,
industry growth and turbulence display the expected positive effects on
firm size, but the intensity of those are more pronounced for larger
firms. The suboptimal scale variable, on the other hand, exhibits a
counterintuitive positive effect and perhaps other types of barriers to
entry that are not related to scale aspects may be important in the
Brazilian case.
Journal: Applied Economics
Pages: 1053-1058
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461998
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461998
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1053-1058
Template-Type: ReDIF-Article 1.0
Author-Name: Yehning Chen
Author-X-Name-First: Yehning
Author-X-Name-Last: Chen
Author-Name: Shing-Yang Hu
Author-X-Name-First: Shing-Yang
Author-X-Name-Last: Hu
Title: The controlling shareholder's personal leverage and firm performance
Abstract:
This article examines the relationship between firm performance and its
controlling shareholder's personal loans. We present a model that allows
the controlling shareholder to finance company projects through personal
loans. Using personal loans, however, will create an incentive for
controlling shareholders to pursue risky projects. We test our predictions
using a sample of companies from Taiwan and find supporting evidence. We
find that firms with a higher personal loan will have a higher risk and
worse performance in the future. We also find that the positive relation
between risk and personal leverage is time varying: the relation gets
stronger in bad times.
Journal: Applied Economics
Pages: 1059-1075
Issue: 8
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500462004
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500462004
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Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1059-1075
Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Menkhoff
Author-X-Name-First: Lukas
Author-X-Name-Last: Menkhoff
Author-Name: Chodechai Suwanaporn
Author-X-Name-First: Chodechai
Author-X-Name-Last: Suwanaporn
Title: On the rationale of bank lending in pre-crisis Thailand
Abstract:
Evidence from credit files is provided to examine bank lending
determinants of Thai commercial banks. Their lending practice follows
reasonable patterns as a standard set of variables, including indirect
risk variables, explains much of the variance in interest rate spread.
Reflecting institutional differences with mature markets, we find a higher
importance of relationship banking and risk control via credit
availability. Information about later default reveals prudent relationship
lending. However, banks could have made better use of available
information about borrowers' riskiness. These findings do not support a
general verdict of bad banking but indicate room to improve lending
decisions.
Journal: Applied Economics
Pages: 1077-1089
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447815
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447815
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1077-1089
Template-Type: ReDIF-Article 1.0
Author-Name: Haesun Park
Author-X-Name-First: Haesun
Author-X-Name-Last: Park
Author-Name: James Mjelde
Author-X-Name-First: James
Author-X-Name-Last: Mjelde
Author-Name: David Bessler
Author-X-Name-First: David
Author-X-Name-Last: Bessler
Title: Time-varying threshold cointegration and the law of one price
Abstract:
A theoretical model of the law of one price which allows for seasonality
in transaction costs and supply and demand conditions between markets is
developed. Bivariate three-regime threshold vector error correction models
are applied to natural gas markets to examine seasonality in threshold
levels. Results indicate that there are nonlinear adjustments to the law
of one price in seven pair-wise markets (Chicago is used as the base
market). In the natural gas sector, dynamic threshold effects relative to
the Chicago market vary depending on season, geographical location and
whether the market is an excess producing or consuming market.
Journal: Applied Economics
Pages: 1091-1105
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500486540
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486540
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1091-1105
Template-Type: ReDIF-Article 1.0
Author-Name: Nancy Mohan
Author-X-Name-First: Nancy
Author-X-Name-Last: Mohan
Author-Name: John Ruggiero
Author-X-Name-First: John
Author-X-Name-Last: Ruggiero
Title: Influence of firm performance and gender on CEO compensation
Abstract:
In this article we continue the examination of top executive pay by
comparing performance, total pay and the influence of CEO gender. We
analyse compensation differences between male and female CEOs using
nonparametric analysis. We calculate the potential compensation for each
executive using two benchmarks. First, each executive's performance and
compensation are evaluated relative to members of the same gender to
produce a same-gender measure of under-compensation. Each executive's
compensation is also benchmarked against the other gender's potential
compensation, producing an other-gender measure of under-compensation.
Together, both measures allow an analysis of the gender-specific potential
salaries of each executive while controlling for performance. The approach
is applied to a sample of male and female executives. The results indicate
that women are under-compensated.
Journal: Applied Economics
Pages: 1107-1113
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500474264
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474264
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1107-1113
Template-Type: ReDIF-Article 1.0
Author-Name: Felix Dominguez-Barrero
Author-X-Name-First: Felix
Author-X-Name-Last: Dominguez-Barrero
Author-Name: Julio Lopez-Laborda
Author-X-Name-First: Julio
Author-X-Name-Last: Lopez-Laborda
Title: Why do people invest in personal pension plans?
Abstract:
The aim of this article is to identify the variables affecting the
decision to make contributions to personal pension plans and the amount of
such contributions. For this purpose, we specify and estimate a Tobit
model for a sample based on the 1995 Personal Income Taxpayers Panel
prepared by the Institute of Fiscal Studies (Spanish Ministry of Economy
and Finance) formed by 3041 taxpayers, of whom 358 made contributions to
pension plans. Our results suggest that individuals decide to invest in
pension plans on complex grounds combining the wish to benefit from tax
savings and to ensure they will receive supplementary income upon
retirement.
Journal: Applied Economics
Pages: 1115-1126
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461956
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461956
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1115-1126
Template-Type: ReDIF-Article 1.0
Author-Name: Tiffany Hui-Kuang Yu
Author-X-Name-First: Tiffany Hui-Kuang
Author-X-Name-Last: Yu
Author-Name: Hong Yih Chu
Author-X-Name-First: Hong Yih
Author-X-Name-Last: Chu
Title: Is health care really a luxury? A demand and supply approach
Abstract:
Many studies have found strong and positive relationship between per
capita income and health care expenditure. These studies usually adopt the
assumptions that (1) the relationships among the variables are constant;
and/or (2) the supply-side market for health care could be treated by
using standard demand functions models. To take into account of the supply
side of health care, we use the demand and supply approach with the
cointegration model to re-examine this issue. By using Taiwan health care
expenditure data, our results show that the real income elasticity is
smaller than unity and the health care expenditures are primarily for
'curing' rather than 'caring'.
Journal: Applied Economics
Pages: 1127-1131
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461857
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461857
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1127-1131
Template-Type: ReDIF-Article 1.0
Author-Name: Erdal Ozmen
Author-X-Name-First: Erdal
Author-X-Name-Last: Ozmen
Title: Financial development, exchange rate regimes and the Feldstein-Horioka puzzle: evidence from the MENA region
Abstract:
This article investigates whether the Feldstein and Horioka (1980)
argument on domestic saving-investment relationship is supported by the
data of the countries in the Middle East and North Africa region when
financial development levels and exchange rate regimes are taken into
account. To this end, we employ both the Auroregressive Distributed Lag
bounds cointegration test and panel mean group procedures. The results
support the view that a successful international financial integration
requires compatible levels of financial intermediation. The evidence also
suggests that saving-investment cointegration is not invariant to exchange
rate regimes.
Journal: Applied Economics
Pages: 1133-1138
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447674
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447674
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1133-1138
Template-Type: ReDIF-Article 1.0
Author-Name: Kangsik Choi
Author-X-Name-First: Kangsik
Author-X-Name-Last: Choi
Title: Ex ante contracting with inequity aversion
Abstract:
We introduce that the principal and the agent can contract at the ex ante
stage, and allow for risk-averse agents with inequity aversion to analyse
the properties of the optimal incentive scheme under adverse selection.
Contrary to the solutions of standard adverse selection problems, our main
finding is that the efficient agent who is a risk-averse in presence of
concerns with inequity produces more than first-best level, whereas the
inefficient agent produces less than second-best level than canonical pure
adverse selection output.
Journal: Applied Economics
Pages: 1139-1145
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447914
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447914
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1139-1145
Template-Type: ReDIF-Article 1.0
Author-Name: Alessio Anzuini
Author-X-Name-First: Alessio
Author-X-Name-Last: Anzuini
Author-Name: Aviram Levy
Author-X-Name-First: Aviram
Author-X-Name-Last: Levy
Title: Monetary policy shocks in the new EU members: a VAR approach
Abstract:
The article provides empirical evidence on the effects of monetary policy
shocks in the three largest new European Union (EU) economies: Czech
Republic, Hungary and Poland. Vector autoregression (VAR) system estimates
show that the co-movement of macroeconomic variables, conditional on a
monetary policy shock, is similar across these countries and, despite
their lower degree of financial development, not dissimilar to that found
for more advanced European economies. While qualitatively similar to the
responses observed in the old EU members, the responses of the new members
are, on average, weaker.
Journal: Applied Economics
Pages: 1147-1161
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600592866
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592866
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1147-1161
Template-Type: ReDIF-Article 1.0
Author-Name: Kang-Shik Choi
Author-X-Name-First: Kang-Shik
Author-X-Name-Last: Choi
Author-Name: Jinook Jeong
Author-X-Name-First: Jinook
Author-X-Name-Last: Jeong
Title: Does unmeasured ability explain the wage premium associated with technological change?: Quantile regression analysis
Abstract:
By using the quantile regressions of earnings equation, we find that the
educational wage premium is higher in industries with rapid technological
change than in industries with slower technological change at every decile
in the distribution of wage residuals. The wage premium associated with
the technological change is mostly explained by the returns to workers'
unobserved heterogeneities, which are correlated with education, rather
than the rents of high-tech industries.
Journal: Applied Economics
Pages: 1163-1171
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500486565
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486565
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1163-1171
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Mendi
Author-X-Name-First: Pedro
Author-X-Name-Last: Mendi
Title: Contractual implications of international trade in tacit knowledge
Abstract:
This article searches for evidence on the additional difficulty the
parties have in contracting for the transfer of know-how relative to the
transfer of patented technology. A sample of contracts for the acquisition
of technology Spanish firms in 1991 is analysed to find a positive
relationship between contract duration and the likelihood of transferring
know-how in unaffiliated transfers. It is also found that technical
assistance is bundled together with the transfer of know-how, suggesting
that the parties try to mitigate opportunistic behaviour on the licensor's
side.
Journal: Applied Economics
Pages: 1173-1183
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600592817
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592817
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1173-1183
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Cheng Wu
Author-X-Name-First: Ming-Cheng
Author-X-Name-Last: Wu
Title: Selecting suitable compensation plans of executive stock options
Abstract:
Theoretical and empirical works have emphasized that executive stock
option plans play an important role in compensation management and
corporate governance owing to the incentives to increase firm stock price
and volatility levels. This study not only proposes models of executive
stock options and constructs value-matched financial variables for
comparing the incentive effects towards these options, but also develops
an empirical study exploring the characteristics of executive stock
options and suitable compensation management for companies. This
investigation examines the daily value and compares incentive effects of
six kinds of executive stock options with the empirical data of TSMC, the
world's largest dedicated semiconductor foundry, which is listed on the
TSE and NYSE. Empirical results indicate that purchased options would be
the best choice for companies that are unsuitable to undertake risky
investments, while the relative indexed options are appropriate for bear
markets and good for companies whose executives are highly risk averse.
Repriceable options are not recommended due to their high costs and weak
incentive effects.
Journal: Applied Economics
Pages: 1185-1193
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600592841
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592841
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1185-1193
Template-Type: ReDIF-Article 1.0
Author-Name: Pi-Chung Han
Author-X-Name-First: Pi-Chung
Author-X-Name-Last: Han
Title: The mobility of highly skilled human capital in Taiwan
Abstract:
Most economists agree that a country's economic growth depends on human
capital, physical capital, technology, and several other minor inputs.
Human capital is the basic wealth of every country. Highly skilled workers
are the most important component of human capital. Human capital can have
a positive spillover effect on society. When talented young people leave
their native country to work elsewhere, this brain drain inhibits the
country's economic growth. Several factors contribute to brain drain.
These can be classified roughly into three categories: economic, academic
and personal. Economic factors play the most important role. From the
early 1960s to the late 1980s, Taiwan suffered a brain drain when many
people who had earned advanced degrees in western countries chose to leave
Taiwan to work elsewhere. In this study's statistical analysis, I show
that Taiwan's economy is based in past on an effective labour force and
explain why Taiwan's economy has grown over the past 30 years. With the
improved economy in the 1990s, young people are increasingly choosing to
return to or remain in Taiwan to work and live. As Taiwan's economy
improves, its highly skilled labour market becomes more competitive.
Journal: Applied Economics
Pages: 1195-1205
Issue: 9
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500439051
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500439051
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Handle: RePEc:taf:applec:v:39:y:2007:i:9:p:1195-1205
Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Hartarska
Author-X-Name-First: Valentina
Author-X-Name-Last: Hartarska
Author-Name: Denis Nadolnyak
Author-X-Name-First: Denis
Author-X-Name-Last: Nadolnyak
Title: Do regulated microfinance institutions achieve better sustainability and outreach? Cross-country evidence
Abstract:
In spite of increasing pressure on microfinance institutions (MFIs)
operating in developing countries to transform into regulated financial
intermediaries, to date, no study has investigated whether regulated MFIs
actually achieve better financial results and reach more poor clients than
nonregulated MFIs. This article explores the impact of regulation on MFI
performance using newly released data for 114 MFIs from 62 countries in an
empirical model where performance is specified as a function of
MFI-specific, regulatory, macroeconomic and institutional variables.
Consistent with recent cross-country evidence on the impact of banking
regulations on bank performance (Barth et al., 2004), this article finds
that regulatory involvement does not directly affect performance either in
terms of operational self-sustainability or outreach. The article also
finds that less leveraged MFIs have better sustainability. The policy
implication is that MFIs' transformation into regulated financial
institutions is may not lead to improved financial results and outreach.
However, the finding that MFIs collecting savings reach more borrowers
suggests that there may be indirect benefits from regulation, if
regulation is the only way for MFIs to access savings.
Journal: Applied Economics
Pages: 1207-1222
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461840
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461840
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1207-1222
Template-Type: ReDIF-Article 1.0
Author-Name: W. A. Naude
Author-X-Name-First: W. A.
Author-X-Name-Last: Naude
Author-Name: W. F. Krugell
Author-X-Name-First: W. F.
Author-X-Name-Last: Krugell
Title: Investigating geography and institutions as determinants of foreign direct investment in Africa using panel data
Abstract:
This article uses a cross-country econometric approach to identify the
determinants for foreign direct investment (FDI) in Africa. The
contribution is 3-fold. Firstly, we recognize that the estimation
techniques used elsewhere, such as ordinary least squares, may be flawed.
We therefore use a dynamic one-step generalized method of moments (GMM)
estimator due to Arellano and Bond (1991). The GMM-estimates identified a
number of robust determinants of FDI, namely government consumption,
inflation rate, investment, governance (political stability,
accountability, regulatory burden, rule of law) and initial literacy. It
is concluded that geography does not seem to have a direct influence on
FDI flows to Africa. Neither market-seeking nor re-exporting motives of
FDI seem to dominate, with different policy instruments being significant
in the different specifications. This does not discount the importance of
good policies, but probably indicates the importance of good policies made
by good institutions. Institutions, in the form of political stability
showed up as a significant determinant of FDI.
Journal: Applied Economics
Pages: 1223-1233
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600567686
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600567686
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1223-1233
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Birchwood
Author-X-Name-First: Anthony
Author-X-Name-Last: Birchwood
Author-Name: Rudolph Matthias
Author-X-Name-First: Rudolph
Author-X-Name-Last: Matthias
Title: Structural factors associated with primary fiscal balances in developing countries
Abstract:
The study explores the conditions under which a government in a
developing country is likely to run a balanced or surplus budget. We
contend that primary fiscal deficits are likely to persist where the
economy is too saving constrained to raise private sector investment. To
conduct the investigation, a logit model is applied to a sample of
developing countries to see whether the saving constraints are associated
with the fiscal stance of governments. Accordingly, income level, growth,
external current account balance and foreign direct investment are used as
indicators of the saving constraint. With the exception of economic
growth, positive developments in these variables turned out to be
significant to the likelihood of the government adopting a surplus budget.
Journal: Applied Economics
Pages: 1235-1243
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447716
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447716
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1235-1243
Template-Type: ReDIF-Article 1.0
Author-Name: Arianne de Blaeij
Author-X-Name-First: Arianne
Author-X-Name-Last: de Blaeij
Author-Name: Paulo Nunes
Author-X-Name-First: Paulo
Author-X-Name-Last: Nunes
Author-Name: Jeroen C. J. M. van den Bergh
Author-X-Name-First: Jeroen C. J. M.
Author-X-Name-Last: van den Bergh
Title: 'No-choice' options within a nested logit model: one model is insufficient
Abstract:
We examine the impact of providing a 'no-choice' option in
attribute-based valuation experiments. The aim of the experiment was to
assess monetary values of cockle fishery management practices in the Dutch
Wadden Sea for different stakeholder groups, namely Dutch citizens, local
residents and tourists. The current policy debate about the management of
the Wadden Sea stresses the fact that individual preferences with respect
to cockle-fishery differ. The aim of this article is to analyse the
individual preferences in a objective way. Special attention is given to
the influence of including a 'no-choice option', which is analysed using a
nested logit model. We test whether the full set of options can be
considered as close substitutes. The estimation results show that the
influence of including the no-choice option differs among the stakeholders
considered.
Journal: Applied Economics
Pages: 1245-1252
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600852955
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600852955
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1245-1252
Template-Type: ReDIF-Article 1.0
Author-Name: Hsiang-Tai Lee
Author-X-Name-First: Hsiang-Tai
Author-X-Name-Last: Lee
Author-Name: Jonathan Yoder
Author-X-Name-First: Jonathan
Author-X-Name-Last: Yoder
Title: A bivariate Markov regime switching GARCH approach to estimate time varying minimum variance hedge ratios
Abstract:
This article develops a new bivariate Markov regime switching
BEKK-Generalized Autoregressive Conditional Heteroscedasticity (GARCH)
(RS-BEKK-GARCH) model. The model is a state-dependent bivariate BEKK-GARCH
model and an extension of Gray's univariate generalized regime-switching
(GRS) model to the bivariate case. To solve the path-dependency problem
inherent in the bivariate regime switching BEKK-GARCH model, we propose a
recombining method for the covariance term in the conditional
variance-covariance matrix. The model is applied to estimate time-varying
minimum variance hedge ratios for corn and nickel spot and futures prices.
Out-of-sample point estimates of hedging portfolio variance show that
compared to the state-independent BEKK-GARCH model, the RS-BEKK-GARCH
model improves out-of-sample hedging effectiveness for both corn and
nickel data. We perform White's (2000) data-snooping reality check to test
for predictive superiority of RS-BEKK-GARCH over the benchmark model and
find that the difference in variance reduction between BEKK-GARCH and
RS-BEKK-GARCH is not statistically significant for either data set at
conventional confidence levels.
Journal: Applied Economics
Pages: 1253-1265
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438970
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438970
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1253-1265
Template-Type: ReDIF-Article 1.0
Author-Name: Gregorio Gimenez
Author-X-Name-First: Gregorio
Author-X-Name-Last: Gimenez
Author-Name: Jaime Sanau
Author-X-Name-First: Jaime
Author-X-Name-Last: Sanau
Title: Interrelationship among institutional infrastructure, technological innovation and growth. An empirical evidence
Abstract:
This paper uses a multi-equation model to achieve an overall study of two
key factors which explain growth, technology and institutions. The paper
focuses on the process of the accumulation of these factors and the
interrelationship arising among them. A theoretical model is given,
together with empirical evidence for the joint impact of these factors on
economic growth in a wide-ranging sample of countries between 1985 and
1997. This paper also contributes certain novel aspects in the variables
employed. Thus, an indicator of human capital and an index reflecting
institutional infrastructure have been used. The human capital indicator
considers health, formal education, informal education and accumulated
experience. It embraces a wider range of factors than the variables
conventionally used in empirical studies. As to the institutional
infrastructure index, it has been constructed on the basis of six
institutional sub-indices, comprising voice and accountability, political
stability, government effectiveness, regulatory quality, rule of law and
control of corruption. Thus, the index constructed captures a greater
wealth of the items commonly covered by the concept of institutions.
Journal: Applied Economics
Pages: 1267-1282
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500438988
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438988
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1267-1282
Template-Type: ReDIF-Article 1.0
Author-Name: Yanrui Wu
Author-X-Name-First: Yanrui
Author-X-Name-Last: Wu
Title: Export performance in China's regional economies
Abstract:
China enjoyed unprecedented economic growth in the 1980s and 1990s.
Associated with this growth was the rapid expansion of exports from the
Chinese regions. This study aims to provide an empirical assessment of
export performance in the Chinese regions during 1992-2001. It has shown
that, on an average, China's regional economies have only achieved 70% of
their export potential, leaving substantial scope for improvement. There
is also considerable variation in export performance among the Chinese
regions, with the noncoastal areas lagging behind. In addition, this
article also shows that several region-specific factors (e.g. foreign
direct investment, government spending, infrastructure development and the
nonstate sector) have affected regional export performance positively.
Furthermore, it is found that the development of China's western regions
has boosted and will continue to improve the export sectors in these
regions.
Journal: Applied Economics
Pages: 1283-1293
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500474272
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474272
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1283-1293
Template-Type: ReDIF-Article 1.0
Author-Name: Willie Belton
Author-X-Name-First: Willie
Author-X-Name-Last: Belton
Author-Name: Usha Nair-Reichert
Author-X-Name-First: Usha
Author-X-Name-Last: Nair-Reichert
Title: Inflation regimes, core inflation measures and the relationship between producer and consumer price inflation
Abstract:
To date, an overwhelming majority of the literature has addressed mean
relationships between producer and consumer price inflation. Granger et
al. (1986) represent the only attempt to investigate second moment
relationships. We examine the consumer--producer price relationship
employing a multivariate GARCH-M framework that allows simultaneous
estimation of the bivariate system along with providing explicit times
series estimates of the variances of consumer and producer price
inflation. This research also breaks new ground in the use of core and
over-all inflation variance measures as well as examining state dependent
mean and variance relationships. We find that mean relationships are
generally sensitive to the measure of inflation used. Food and energy
prices play an important role in transmitting changes in aggregate input
prices to aggregate output prices. When food and energy prices are
eliminated from consumer and producer price inflation measures, mean
relationships break down irrespective of whether the economy is
experiencing a high or low inflation regime. Variance relationships appear
to be more robust in general and input price relationships in particular
appear to respond to inflation regime shifts.
Journal: Applied Economics
Pages: 1295-1305
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447682
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447682
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1295-1305
Template-Type: ReDIF-Article 1.0
Author-Name: Inchul Kim
Author-X-Name-First: Inchul
Author-X-Name-Last: Kim
Author-Name: Insik Min
Author-X-Name-First: Insik
Author-X-Name-Last: Min
Title: An alternative semiparametric estimate of the base-independence equivalence scale: an application to US consumer expenditure survey data
Abstract:
This study proposes a semiparametric estimate and a test for
base-independence equivalence scale. Our semiparametric approach is based
on nondensity weighted loss function in contrast to Pendakur's (1999)
density weighted loss function. Simulation results indicate that our
specification tends to produce a smaller bias in estimating the
equivalence scale and thus a more reliable test for base-independence
hypothesis. We also provide an application using US Consumer Expenditure
Survey data.
Journal: Applied Economics
Pages: 1307-1314
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606294
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606294
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1307-1314
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Isabel Gil
Author-X-Name-First: Ana Isabel
Author-X-Name-Last: Gil
Author-Name: Jose Alberto Molina
Author-X-Name-First: Jose Alberto
Author-X-Name-Last: Molina
Title: Human development and alcohol abuse in adolescence
Abstract:
The aim of this article is to analyse the development of human capital in
adolescents, as represented by their state of health and educational
attainment, when this capital is affected by the abusive consumption of
alcohol measured by grams of ethanol. To that end, we adopt a theoretical
framework derived from the Model of Rational Addiction, the Model of
Health Demand and the Model of Schooling Demand, which is then estimated
by using data drawn from the Spanish National Survey on Drug Use in the
School Population (1996, 1998, 2000). Results confirm that higher alcohol
consumption leads to worse health states and lower academic efficiency
among adolescents, which suggests the need to implement effective policies
aimed at reducing alcohol abuse among this population group.
Journal: Applied Economics
Pages: 1315-1323
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840701346238
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701346238
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1315-1323
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Giunta
Author-X-Name-First: Anna
Author-X-Name-Last: Giunta
Author-Name: Francesco Trivieri
Author-X-Name-First: Francesco
Author-X-Name-Last: Trivieri
Title: Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms
Abstract:
Our empirical study aims at identifying the determinants of Information
Technology (IT) adoption by small and medium sized Italian manufacturing
firms. An ordered probit analysis is conducted on a sample of about 17 000
firms surveyed by the Italian Statistical Institute, using as a dependent
variable an index of IT adoption. Our results show that firm size,
geographical location, functional composition of the workforce, R&D
activity, subcontracting, exports and collaboration between firms are all
highly significant determinants of IT adoption. Such results are
consistent with most of the predictions advanced in the few studies
existing on this topic.
Journal: Applied Economics
Pages: 1325-1334
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600567678
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600567678
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1325-1334
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Ming Jing Yang
Author-X-Name-First: Ming Jing
Author-X-Name-Last: Yang
Author-Name: Hui-Chin Liao
Author-X-Name-First: Hui-Chin
Author-X-Name-Last: Liao
Author-Name: Chia-Hao Lee
Author-X-Name-First: Chia-Hao
Author-X-Name-Last: Lee
Title: Hysteresis in unemployment: empirical evidence from Taiwan's region data based on panel unit root tests
Abstract:
In this study, we test the hysteresis hypothesis in unemployment for
Taiwan's 21 regional data sets using the Levin et al. (2002), Im et al.
(2003) and Taylor and Sarno (1998) panel-based unit root tests for the
June 1993 to September 2001 period. The results from all three tests
provide evidence that based on Taiwan's regional unemployment data the
hysteresis hypothesis can justifiably be rejected.
Journal: Applied Economics
Pages: 1335-1340
Issue: 10
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500486516
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486516
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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1335-1340
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Deininger
Author-X-Name-First: Klaus
Author-X-Name-Last: Deininger
Author-Name: Songqing Jin
Author-X-Name-First: Songqing
Author-X-Name-Last: Jin
Author-Name: Xinhua Yu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Yu
Title: Risk coping and starvation in rural China
Abstract:
We use a 3-year panel from two poor provinces in Southern China to
examine the nature of risks to which rural households are exposed and
their ability to insure calorie consumption and spending of total
consumption against idiosyncratic shocks to their income. We find that
idiosyncratic risks are indeed the main source of income variation in the
sample, consumption is better insured than total spending. Unlike total
spending where full insurance is rejected in most cases, calorie intake is
completely insured for both land-rich and land-poor households in both
provinces. Access to even modest amounts of land significantly enhances
households' ability to guard against total spending. Land-rich households
are much better insured against total spending than land-poor households.
The results are robust across model specifications although Generalized
Method of Moments (GMM) estimations increase the magnitude of difference
in total spending between the land-rich and the land-poor. Policies
targeting poverty reduction and improving land use rights and land access
to the poor could potentially improve the overall risk sharing ability of
the rural poor.
Journal: Applied Economics
Pages: 1341-1352
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600592908
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592908
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1341-1352
Template-Type: ReDIF-Article 1.0
Author-Name: A. F. Galvao Jr
Author-X-Name-First: A. F.
Author-X-Name-Last: Galvao Jr
Author-Name: F. A. Reis Gomes
Author-X-Name-First: F. A.
Author-X-Name-Last: Reis Gomes
Title: Convergence or divergence in Latin America? A time series analysis
Abstract:
This article investigates the occurrence of per capita income convergence
in 19 Latin American countries. We apply a time series approach to test
for stochastic convergence and β-convergence based on structural
breaks unit root tests, where the dates of breaks are unknown and
determined endogenously. This approach is essential since it does not
impose common break dates and parameter homogeneity among countries. In
fact, the econometric methodology employed attempts to provide what was
lacking in previous works. As a consequence, unlike prior studies the
results indicate that there is substantial evidence in favor of
conditional convergence in Latin America. We show that this evidence is
even greater when analyzing South and Central America separately.
Journal: Applied Economics
Pages: 1353-1360
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606278
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606278
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1353-1360
Template-Type: ReDIF-Article 1.0
Author-Name: Alfons Palangkaraya
Author-X-Name-First: Alfons
Author-X-Name-Last: Palangkaraya
Author-Name: Jongsay Yong
Author-X-Name-First: Jongsay
Author-X-Name-Last: Yong
Title: How effective is “lifetime health cover” in raising private health insurance coverage in Australia? An assessment using regression discontinuity
Abstract:
The Australian government introduced three major private health insurance
policy initiatives in recent years. These are, in chronological order, (i)
the Private Health Insurance Incentives Scheme (PHIIS), which imposes a
tax levy on high-income earners who do not have private health insurance
and provides a means-tested subsidy schedule for low-income earners who
purchase PHI; (ii) a 30% premium rebate for all private health insurance
policies to replace the means-tested component under PHIIS; and (iii)
lifetime health cover, which permits a limited form of age-related risk
rating by insurance funds. Together, these policy changes have been
effective in encouraging the uptake of PHI; the percentage of the
population covered by PHI rose from 31% in 1999 to 45% at the end of 2001.
The difficult issue, however, is in disentangling the effects of the three
policy changes, given that they were introduced in quick succession. This
article attempts to evaluate the effect of lifetime health cover using a
regression discontinuity design, an approach that makes use of
cross-section data that allows the effect of lifetime health cover to be
isolated via local regression. The results suggest that the importance of
lifetime health cover appears to be grossly over-rated in previous
studies. Our estimates indicate that it accounts for roughly 22-32% of the
combined effects of all the policy initiatives introduced in the late
1990s. While these figures suggest that its effect is clearly significant,
it is nonetheless nowhere near the effect often associated with lifetime
health cover.
Journal: Applied Economics
Pages: 1361-1374
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500486532
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486532
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1361-1374
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Bentzen
Author-X-Name-First: Jan
Author-X-Name-Last: Bentzen
Title: Does OPEC influence crude oil prices? Testing for co-movements and causality between regional crude oil prices
Abstract:
Using high-frequency data the co-movements among crude oil prices are
analysed in order to address the question of regionalization of the world
crude oil market. Time-series econometrics in the form of error-correction
modelling is applied for daily crude oil price data covering the time
period 1988 to 2004 and in this framework topics like weak and strong
exogeneity among three major oil prices - represented by Brent, OPEC and
Texas (WTI) - are addressed. The empirical results are that causality is
most likely bi-directional among these crude oil prices - and hence
rejecting a regionalization hypothesis of the global oil market - and also
an influence from the OPEC oil price towards Bent and WTI, which are
usually claimed to have a benchmark role.
Journal: Applied Economics
Pages: 1375-1385
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606344
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606344
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1375-1385
Template-Type: ReDIF-Article 1.0
Author-Name: Yujin Oh
Author-X-Name-First: Yujin
Author-X-Name-Last: Oh
Author-Name: Sung-Joon Park
Author-X-Name-First: Sung-Joon
Author-X-Name-Last: Park
Author-Name: Yu-Seop Kim
Author-X-Name-First: Yu-Seop
Author-X-Name-Last: Kim
Title: A comparative analysis of inter-industry wage differentials: before and after the Korean financial crisis
Abstract:
Korean economy has changed rapidly since the 1997 Korean financial
crisis. This article investigates whether the inter-industry wage
differentials in the Korean manufacturing industry are consistent over
time and how the inter-industry wage structure has changed after the
financial crisis. We used the 1995 and 1999 survey report on the wage
structure-Korea. Our empirical results provide evidences for a wider
inter-industry wage differentials and changes of the wage structure. After
the crisis, company size, region (live in capital), sex, tenure, education
are more critical to determine wages. According to factor analysis, the
job quality factor is most closely related to wages before the crisis,
while the industry attributes factor does in 1999.
Journal: Applied Economics
Pages: 1387-1397
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606286
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606286
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1387-1397
Template-Type: ReDIF-Article 1.0
Author-Name: Aydın Ulucan
Author-X-Name-First: Aydın
Author-X-Name-Last: Ulucan
Title: An analysis of mean-variance portfolio selection with varying holding periods
Abstract:
In this study, I investigate optimal holding period (investment horizon)
for the classical mean-variance portfolio optimization problem. Optimal
holding period ex-post is determined using Istanbul Stock Exchange ISE-100
index stocks and Athens Stock Exchange FTSE-40 index stocks data. I extend
the approach to other downside risk criteria including expected loss and
semi-variance. The analysis involves solving the portfolio optimization
problem for a total of 648 cases - two stock exchanges, three different
target return levels, three different risk measures and 36 different time
periods with rolling data. I discuss the results from the view point of
two neighbouring markets: one with an upward trend and the other with a
downward trend. The results show that portfolio returns with varying
holding periods have a convex structure with an optimal holding period.
Journal: Applied Economics
Pages: 1399-1407
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606310
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606310
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1399-1407
Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Chuan Tsai
Author-X-Name-First: Shih-Chuan
Author-X-Name-Last: Tsai
Title: Strategic debt service and investment decisions
Abstract:
Firms alter investing decisions when there is debt in the capital
structure. Security design features can exacerbate the situation. This
article studies how strategic debt service may affect investment
distortions resulting from debt financing in a dynamic framework. When the
production decision involves an expansion option, the shareholders' option
to strategically default on the outstanding debt eliminates bankruptcy
costs but, in contrast to previous literature where production decisions
are fixed, leads to suboptimal investing decisions. This is due to higher
wealth transfers from shareholders to debt holders upon exercise of the
growth option. Strategic debt service, therefore, may reduce the value of
the firm. The setting of an endogenous production set offers a potential
explanation for empirical observations of wide credit spreads and low
leverage.
Journal: Applied Economics
Pages: 1409-1424
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600592890
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592890
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1409-1424
Template-Type: ReDIF-Article 1.0
Author-Name: Khurram Jamali
Author-X-Name-First: Khurram
Author-X-Name-Last: Jamali
Author-Name: Kirsten Wandschneider
Author-X-Name-First: Kirsten
Author-X-Name-Last: Wandschneider
Author-Name: Phanindra Wunnava
Author-X-Name-First: Phanindra
Author-X-Name-Last: Wunnava
Title: The effect of political regimes and technology on economic growth
Abstract:
Do political regimes have a significant effect on economic growth? This
study builds on the new neoclassical growth model to identify economic
determinants of growth, and explicitly tests for the influence of
political variables on economic performance for the 1990s. The results
suggest that democracies and bureaucracies significantly outperform
autocracies. Economic growth is also promoted by increased protection of
property rights, and higher investment in education. Moreover, technology
has become a requirement for efficient production, and hence, is crucial
in promoting growth. Countries can therefore increase the level of
economic growth by increasing the levels of education and technology in
the economy, and establishing codified laws to foster property rights.
Journal: Applied Economics
Pages: 1425-1432
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447906
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447906
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1425-1432
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Chien-Fu Chen
Author-X-Name-First: Chien-Fu
Author-X-Name-Last: Chen
Author-Name: Li-Hsueh Chen
Author-X-Name-First: Li-Hsueh
Author-X-Name-Last: Chen
Title: An empirical study of the asymmetric cointegration relationships among the Chinese stock markets
Abstract:
The Enders and Siklos asymmetric cointegration test is employed to
examine the long-run asymmetric equilibrium relationships between the
Chinese Shanghai and Shenzhen stock markets. Three samples are adopted,
which are the whole sample (October 1992 to September 2002); the first
subsample before B shares were opened up to the Chinese public (October
1992 to February 2001); and the second subsample after B shares were
opened up (February 2001 to September 2002). The estimated results are as
follows. First, when the conventional Engle-Granger symmetric
cointegration test is used, only the A shares in Shanghai and Shenghen
stock exchange market are cointegrated when using the whole sample and the
first subsample. However, with the Enders-Siklos M-TAR asymmetric
cointegration test, Shenzhen A and B shares stock prices have an
asymmetric cointegration relationship after B shares were open, suggesting
that openness increases the market efficiency. Furthermore, the two A
shares in Shanghai and Shenzhen stock exchanges also have an asymmetric
cointegration relationship in the whole sample and the first subsample,
implying that although the asymmetric relationship is crucial, it has long
been neglected. Finally, it is found that the adjustment speed of Shanghai
A shares is faster when deviation from the long-run equilibrium is
positive than when it is negative.
Journal: Applied Economics
Pages: 1433-1445
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606302
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606302
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1433-1445
Template-Type: ReDIF-Article 1.0
Author-Name: Adriaan Kalwij
Author-X-Name-First: Adriaan
Author-X-Name-Last: Kalwij
Author-Name: Wiemer Salverda
Author-X-Name-First: Wiemer
Author-X-Name-Last: Salverda
Title: The effects of changes in household demographics and employment on consumer demand patterns
Abstract:
This study examines to what extent changes in consumer demand patterns
over the last two decades in the Netherlands can be attributed to changes
in household demographics, employment and total expenditures. The
dominating changes in consumer demand are decreasing budget shares of food
& beverages and clothing & footwear and increasing budget shares of
housing and services. The changes in households' composition - away from
the traditional one-earner family with children - together with the
increase in household total expenditures account for about one-third of
the decrease in the budget share of food & beverages, half of the increase
in the budget shares of services and only a minor part of the increase in
housing. Once controlled for budget effects, the quadrupling of the
proportion of employed women with young children accounts for about
one-third of the increase in the budget shares of personal & health care -
including childcare - and food away, holidays & entertainment.
Journal: Applied Economics
Pages: 1447-1460
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500474256
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500474256
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1447-1460
Template-Type: ReDIF-Article 1.0
Author-Name: Shyh-Wei Chen
Author-X-Name-First: Shyh-Wei
Author-X-Name-Last: Chen
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Title: Evidence of the duration-dependence from the stock markets in the Pacific Rim economies
Abstract:
This article investigates the duration-dependent feature of five Pacific
Rim economies. The duration-dependent Markov Switching model is employed
to achieve this objective. The Savage-Dickey density ratio is also
computed in support of the duration-dependent Markov switching model. The
possible bull and bear market dates for each stock market are also
identified by the posterior probability from the empirical model. It is
unambiguous that Japan, South Korea and Hong Kong are all characterized by
duration-dependence in a bear market but no duration-dependence in a bull
market. In the case of Taiwan and Singapore, the duration-dependence
feature holds for both the bear and bull markets.
Journal: Applied Economics
Pages: 1461-1474
Issue: 11
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600592858
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592858
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Handle: RePEc:taf:applec:v:39:y:2007:i:11:p:1461-1474
Template-Type: ReDIF-Article 1.0
Author-Name: Sheila Amin Gutierrez de Pineres
Author-X-Name-First: Sheila Amin
Author-X-Name-Last: Gutierrez de Pineres
Author-Name: Manuel Cantavella-Jorda
Author-X-Name-First: Manuel
Author-X-Name-Last: Cantavella-Jorda
Title: Export-led growth: are the results robust across methodologies and/or data sets? A case study of Latin America
Abstract:
We examine the export-led growth (ELG) hypothesis from a different
perspective asking if the choice of data and/or methodology drives the
results. We apply the Granger causality test modified by the corresponding
error correction model using real export data from two common sources: the
International Monetary Fund and the United Nations Commodity Trade
Statistics. Additionally, to determine if the level of deflation could be
a factor, we deflate the data at a disaggregated level and by a single
export unit price index. Outcomes are compared to those obtained through
the Granger causality procedure developed by Toda and Yamamoto (1995) and
Dolado and Lutkepohl (1996). We use sixteen Latin American countries to
test our hypotheses. The analysis reveals inconsistencies in the results
both by selection of data and methodology suggesting much of the debate
regarding ELG, at least for Latin America, is fuelled by data and/or
methodology choice, putting into question previous studies.
Journal: Applied Economics
Pages: 1475-1500
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447781
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447781
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1475-1500
Template-Type: ReDIF-Article 1.0
Author-Name: Arusha Cooray
Author-X-Name-First: Arusha
Author-X-Name-Last: Cooray
Author-Name: Dipendra Sinha
Author-X-Name-First: Dipendra
Author-X-Name-Last: Sinha
Title: The Feldstein-Horioka model re-visited for African countries
Abstract:
We study the relationship between the saving and investment rates for 20
African countries using a long period of data. A high correlation between
saving and investment is often taken as evidence of capital immobility. We
use the new Ng-Perron unit root tests to examine the stationarity of
saving and investment rates. Both Johansen cointegration tests and
fractional cointegration tests are used. The results are mixed. The
Johansen cointegration tests show that the saving and investment rates are
cointegrated only for Rwanda and South Africa. This implies that for the
other 18 countries, there is evidence of capital mobility. The fractional
cointegration test results are different. The two rates are found to be
fractionally cointegrated for the following 12 countries: Algeria,
Burundi, Egypt, Morocco, Niger, Rwanda, Senegal, South Africa, Swaziland,
Tunisia, Tanzania and Zimbabwe. For Cote d'Ivoire, Kenya, Lesotho and
Sierra Leone there is some evidence of capital mobility while the results
for Ethiopia, Malawi, Mauritius and Nigeria are mixed.
Journal: Applied Economics
Pages: 1501-1510
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600675679
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675679
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1501-1510
Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Ling Lin
Author-X-Name-First: Chih-Ling
Author-X-Name-Last: Lin
Author-Name: Ming-Chieh Wang
Author-X-Name-First: Ming-Chieh
Author-X-Name-Last: Wang
Author-Name: Yin-Feng Gau
Author-X-Name-First: Yin-Feng
Author-X-Name-Last: Gau
Title: Expected risk and excess returns predictability in emerging bond markets
Abstract:
This study examines the predictability of expected excess returns from
eight emerging bond markets within an international asset pricing
framework. Two sets of instruments are used, which include both world and
local factors, to forecast emerging bond returns. Besides investigating
the influence of the macroeconomic factors in specific countries on bond
returns in those countries, this study also divides local factors into
macroeconomic and financial factors. Unlike previous studies, we apply
macroeconomic instruments that contain more information on excess returns
as a proxy for local risk factors via principal component analysis
methodology. The information variable approach enables the prediction of
excess bond returns based on world and local factors and facilitating
understanding of the degree of integration between emerging bond markets
and developed bond markets. The results indicate that the bond market in
emerging world is partially integrated to that in the developed world and
the predictability of local factors that include both financial and
macroeconomic information variables can forecast around 25-66% of the
returns of emerging bonds. Incorporating the macroeconomic variables
increases the explanatory power of the model. Both world and
country-specific local instruments can forecast excess bond returns, but
local instruments appear to be better predictors of such returns,
particularly the local credit spread to US. Additionally, this study finds
that investor risk aversion is significant among most of sample countries.
Journal: Applied Economics
Pages: 1511-1529
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606336
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606336
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1511-1529
Template-Type: ReDIF-Article 1.0
Author-Name: Changhui Kang
Author-X-Name-First: Changhui
Author-X-Name-Last: Kang
Title: Academic interactions among classroom peers: a cross-country comparison using TIMSS
Abstract:
Using an international data set from the Third International Mathematics
and Science Study (TIMSS), we examine academic interactions among
classroom peers for each country, and compare them across different
countries. To minimize the bias that usually plagues peer effects studies,
we take within-student differences between mathematics and science test
scores. The results show a significantly positive association between
peers' performance and own achievement for most of the TIMSS countries.
Moreover, the degree of mutual peer interactions within classroom is found
to be surprisingly close across different countries, even if there exists
a wide range of institutional differences in middle-school education (e.g.
degree of ability mixing).
Journal: Applied Economics
Pages: 1531-1544
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606328
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606328
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1531-1544
Template-Type: ReDIF-Article 1.0
Author-Name: Keshab Bhattarai
Author-X-Name-First: Keshab
Author-X-Name-Last: Bhattarai
Title: Welfare impacts of equal-yield tax reforms in the UK economy
Abstract:
A multisectoral dynamic general equilibrium tax model with and without
announcement effects for open and closed capital markets is used to
evaluate efficiency gains and transitional effects from equal-yield tax
reforms for seven different taxes in the UK economy. Impacts of an
unanticipated tax reform on investment, capital accumulation, output and
employment are compared to those of anticipated tax reforms. Households,
producers, traders, investors and the government are found to be more
capable of adjusting their economic behaviour when tax announcements are
made in advance. In equal-yield tax experiments welfare gains up to 1.4%
of base year GDP can occur by removing distortions in taxes. Welfare loss
of up to 2.05% of it can happen if a less distortionary tax, such as the
labour income tax is replaced by more distortionary taxes. These
simulation results hold whether the capital markets are closed or open.
Journal: Applied Economics
Pages: 1545-1563
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600571100
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600571100
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1545-1563
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Herzfeld
Author-X-Name-First: Thomas
Author-X-Name-Last: Herzfeld
Author-Name: Christoph Weiss
Author-X-Name-First: Christoph
Author-X-Name-Last: Weiss
Title: Corruption clubs: empirical evidence from kernel density estimates
Abstract:
A common finding of many analytical models is the existence of multiple
equilibria of corruption. Countries characterized by the same economic,
social and cultural background do not necessarily experience the same
levels of corruption. In this article, we use Kernel Density Estimation
techniques to analyse the cross-country distribution of corruption.
Particular emphasis will be given to the question whether the distribution
of corruption shows more than one peak. We find that most of the estimated
densities exhibit twin peaks. We also provide some evidence on the
intra-distribution dynamics and the persistence of corruption. We find the
group of countries classified within the two 'clubs' to be very stable.
Corruption is a highly persistent phenomenon. Substantial changes in the
economic, political and cultural environment of countries within the
'corruption club' are required before a significant decline of corruption
is to be expected.
Journal: Applied Economics
Pages: 1565-1572
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500461980
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461980
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1565-1572
Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jurgen Engelbrecht
Author-X-Name-First: Hans-Jurgen
Author-X-Name-Last: Engelbrecht
Author-Name: Christopher Pearce
Author-X-Name-First: Christopher
Author-X-Name-Last: Pearce
Title: The GATT/WTO has promoted trade, but only in capital-intensive commodities!
Abstract:
This article uses gravity models to explore the impact of the General
Agreement on Tariffs and Trade (GATT)/World Trade Organization (WHO) on
bilateral trade in a sample of 46 countries over the period 1965 to 1997.
Our data enable us to disaggregate trade by broad commodity aggregates.
The results for total trade are similar to those reported by Rose (2004).
However, the disaggregated estimates reveal that the GATT/WTO has had a
positive and statistically significant impact on trade in
capital-intensive commodities, but no statistically significant impact on
trade in other commodities. The article demonstrates that simple
modifications of Rose's approach lead to results that are much more
'common sense' than his (JEL F10, F15).
Journal: Applied Economics
Pages: 1573-1581
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600592874
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592874
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1573-1581
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jesus Delgado
Author-X-Name-First: Maria Jesus
Author-X-Name-Last: Delgado
Author-Name: Inmaculada Alvarez
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Alvarez
Title: Network infrastructure spillover in private productive sectors: evidence from Spanish high capacity roads
Abstract:
Interest in public infrastructure research has been a subject of
increasing concern to economists and policy-makers. This article aims at
analysing the locational impact of the high capacity roads (HCR) on the
Spanish private economic activity from 1970 through 1998, given that this
is one of main infrastructure-based development strategy undertaken in
Spain in this period. In a stochastic frontier production-function
framework, we allow for modelling of provincial heterogeneity through the
existence of different efficiency levels in the territorial units. Results
show HCR spillovers between geographically close provinces and between
provinces displaying similar socio-demographic characteristics and
government size. To the extent that the magnitude and sign of these
impacts differ across sectors a reasonable explanation of the limited
impact of HCR on aggregate private production could be made. The presence
of a negative spillover effect in the industrial and business service
sector suggests that Spanish provinces may have used HCR capital as a
competitive tool for attracting factors of production leading to a
rearrangement in these economic activities.
Journal: Applied Economics
Pages: 1583-1597
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500486557
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486557
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1583-1597
Template-Type: ReDIF-Article 1.0
Author-Name: Jeronimo Pastor
Author-X-Name-First: Jeronimo
Author-X-Name-Last: Pastor
Author-Name: Alejandro Villagomez
Author-X-Name-First: Alejandro
Author-X-Name-Last: Villagomez
Title: The structural budget balance: a preliminary estimation for Mexico
Abstract:
In this article we estimate the structural budget balance for Mexico from
1980 to 2003 using a variation of the methodology proposed by the
International Monetary Fund. In addition, we propose a fiscal rule that
limits deficits in the structural balance as a percentage of GDP, such as
the ones used by the European Union and the Chilean Government amongst
others. We also simulate what the conventional balance would have been for
Mexico if such a rule would have been implemented in 1980.
Journal: Applied Economics
Pages: 1599-1607
Issue: 12
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447856
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447856
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Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1599-1607
Template-Type: ReDIF-Article 1.0
Author-Name: Maxime de Marin de Montmarin
Author-X-Name-First: Maxime de Marin
Author-X-Name-Last: de Montmarin
Title: A new contribution to the 'Paris Metro Pricing' proposal
Abstract:
Using the concept of the 'Paris Metro Pricing', we will show that, when
the distribution of the capacity between sub-networks leads to any loss of
technical effectiveness and when a traditional condition on the 'hazard
rate' is checked, it is always optimal for the monopolist to subdivide his
main network in as many sub-networks as there are different types of net
surfers.
Journal: Applied Economics
Pages: 1609-1612
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690173
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1609-1612
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Title: Estimating short and long-run relationships: a guide for the applied economist
Abstract:
Many applied economists face problems in selecting an appropriate
technique to estimate short and long-run relationships with the time
series methods. This article reviews three alternative approaches viz.,
general to specific, vector autoregressions and the vector error
correction models. As in other methodological controversies, definite
answers are difficult. It is suggested that if these techniques are seen
as tools to summarize data, as in Smith (2000), often there maybe only
minor differences in their estimates. Therefore a computationally
attractive technique is likely to be popular.
Journal: Applied Economics
Pages: 1613-1625
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690256
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690256
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1613-1625
Template-Type: ReDIF-Article 1.0
Author-Name: Leone Leonida
Author-X-Name-First: Leone
Author-X-Name-Last: Leonida
Author-Name: Dario Maimone Ansaldo Patti
Author-X-Name-First: Dario Maimone Ansaldo
Author-X-Name-Last: Patti
Author-Name: Pietro Navarra
Author-X-Name-First: Pietro
Author-X-Name-Last: Navarra
Title: Towards an equilibrium level of market reform: how politics affects the dynamics of policy change
Abstract:
In this article we examine the dynamics of economic reforms that are
implemented by incumbent policy-makers interested in maintaining their
political power. We use a sample of 86 countries over a time period going
from 1980 to 2001 and find that the achievement of an equilibrium level of
market liberalization is highly costly. Our results are robust to
endogenity and model specification.
Journal: Applied Economics
Pages: 1627-1634
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690231
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690231
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1627-1634
Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Hsien Liu
Author-X-Name-First: Wen-Hsien
Author-X-Name-Last: Liu
Title: Forecasting the semiconductor industry cycles by bootstrap prediction intervals
Abstract:
In recent years, there has been a recognition that point forecasts of the
semiconductor industry sales may often be of limited value. There is
substantial interest for a policy maker or an individual investor in
knowing the degree of uncertainty that attaches to the point forecast
before deciding whether to increase production of semiconductors or
purchase a particular share from the semiconductor stock market. In this
article, I first obtain the bootstrap prediction intervals of the global
semiconductor industry cycles by a vector autoregressive (VAR) model using
monthly US data consisting of four macroeconomic and seven industry-level
variables with 92 observations. The 24-step-ahead out-of-sample forecasts
from various VAR setups are used for comparison. The empirical result
shows that the proposed 11-variable VAR model with the appropriate lag
length captures the cyclical behaviour of the industry and outperforms
other VAR models in terms of both point forecast and prediction interval.
Journal: Applied Economics
Pages: 1731-1742
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600706995
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600706995
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1731-1742
Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Lin Wu
Author-X-Name-First: Jyh-Lin
Author-X-Name-Last: Wu
Author-Name: Yu-Hau Hu
Author-X-Name-First: Yu-Hau
Author-X-Name-Last: Hu
Title: Currency substitution and nonlinear error correction in Taiwan's demand for broad money
Abstract:
We modify the conventional money demand function by including a real
exchange rate variable to reflect the effect of currency substitution.
Empirical evidence indicates that the variable is crucial to the long-run
stability of Taiwan's money demand. After finding the failure of a linear
error-correction model (ECM) in describing the dynamics of Taiwan's money
demand, we apply a nonlinear ECM to examine its dynamics and support the
appropriateness of the nonlinear model empirically.
Journal: Applied Economics
Pages: 1635-1645
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/09603100600675631
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100600675631
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1635-1645
Template-Type: ReDIF-Article 1.0
Author-Name: Shu Chen Chang
Author-X-Name-First: Shu Chen
Author-X-Name-Last: Chang
Title: The interactions among foreign direct investment, economic growth, degree of openness and unemployment in Taiwan
Abstract:
The vector autoregression method of variance decomposition and impulse
response function analysis are applied to analyse various relationships
among foreign direct investment (FDI), economic growth, unemployment and
degree of openness in Taiwan. The analysis results show that these five
variables have a long-run equilibrium relationship; however, unemployment
rate and FDI outflow have weak exogeneity. We also found that there exist
three unidirectional causalities from FDI outflow to FDI inflow, from
economic growth to degree of openness, and from economic growth to
unemployment in short-run. Furthermore, the shocks of economic growth and
degree of openness have positive effects on FDI inflow. On the contrary,
the shocks in economic growth and FDI inflow have negative effects on
unemployment rate.
Journal: Applied Economics
Pages: 1647-1661
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600675612
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675612
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1647-1661
Template-Type: ReDIF-Article 1.0
Author-Name: R. Wesley Nimon
Author-X-Name-First: R. Wesley
Author-X-Name-Last: Nimon
Author-Name: Ricky Hall
Author-X-Name-First: Ricky
Author-X-Name-Last: Hall
Title: Empirical analysis of the efficiency of job assignment auctions
Abstract:
For some hard-to-fill jobs the Navy awards Assignment Incentive Pay using
an auction-like format. With respect to the optimal job assignment auction
format, however, there is only a very limited academic literature.
Furthermore, the extant literature assumes all bidders are equally
qualified. In the Navy assignment context, this is not a tenable
assumption, as other considerations, such as relocation and en-route
training costs, must be considered when making an assignment. The lower
the weight on the bid, the greater the weight that can be attached to the
qualification component in the objective function. The lower the weight,
however, the weaker the incentive to bid near one's reservation wage. The
consideration of such other criteria precludes the implementation of the
incentive-compatible, Vickery-Leonard assignment auction. We relax the
assumption that bid amounts alone determine the assignment set and
experimentally estimate the efficiency reductions associated with
decreased bid-weights. The estimated elasticity of the value of the bids
to changes in the bid-weight in low contention, first price auctions vary
by bid-weight. Nonetheless, an increase from a 10 to a 50% weight on the
bids decreases the level of the submitted bids by approximately 28%.
Journal: Applied Economics
Pages: 1679-1690
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600675646
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675646
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1679-1690
Template-Type: ReDIF-Article 1.0
Author-Name: Lex Borghans
Author-X-Name-First: Lex
Author-X-Name-Last: Borghans
Author-Name: Bart Golsteyn
Author-X-Name-First: Bart
Author-X-Name-Last: Golsteyn
Title: Skill transferability, regret and mobility
Abstract:
After graduation many students start working in sectors not related to
their field of study or participate in training targeted at work in other
sectors. In this article, we look at mobility immediately after graduation
from the perspective that educational choices have been made when these
pupils had little experience of the actual working life in these
professions. We develop a model where students accumulate partially
transferable human capital but also learn about their professional
preferences at the university and during the first years in the labour
market. As a consequence of this newly acquired insight, these young
workers might realize that working in another occupational field would
better fit their preferences, although they are better equipped to work in
their own field. The empirical analysis reveals that if wages are 1% lower
due to lower skill transferability, the probability that a graduate who
regrets his choice actually switches decreases by 1.4 percentage points,
while those who switch on average take 0.3 months additional education.
Journal: Applied Economics
Pages: 1663-1677
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600675661
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675661
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1663-1677
Template-Type: ReDIF-Article 1.0
Author-Name: Nakil Sung
Author-X-Name-First: Nakil
Author-X-Name-Last: Sung
Title: Information technology, efficiency and productivity: evidence from Korean local governments
Abstract:
This study evaluates the performance of Korean local government by
measuring their technical efficiency (TE) and total factor productivity
(TFP) growth and, more importantly, examining the impact of information
technology (IT) on this performance. The study is different from received
analysis in that a unique measure of the state of IT-the Informatization
Index-is used to investigate the impact of IT on both TE and TFP growth.
Empirical analyses are conducted on data from 222 Korean local governments
for the period 1999 to 2001. In particular, data envelopment analysis
techniques are applied to calculate TE scores and TFP growth rates for
sampled local governments. The empirical findings confirm the positive
impact IT has in improving technical efficiency and accelerating
productivity growth. The estimated coefficients are correctly signed (with
other regional characteristics controlled for) when TE scores and TFP
growth rates are regressed on the Index. In addition, the findings
indicate that economies of density are present in the production of local
public services.
Journal: Applied Economics
Pages: 1691-1703
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600675620
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675620
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1691-1703
Template-Type: ReDIF-Article 1.0
Author-Name: Nobuyuki Harada
Author-X-Name-First: Nobuyuki
Author-X-Name-Last: Harada
Title: Video game demand in Japan: a household data analysis
Abstract:
Various economic studies of the video game industry have focused on
intra-industry details. This article complements the approach by
highlighting broader budget allocation by households. Using the 'total
households' data of the Family Income and Expenditure Survey, this article
estimates the demand model for video games. Estimation results show the
effects of household income and demographic factors and prices of goods on
the expenditure share of video games. These results indicate the
importance of explicitly considering a households' budget allocation, or
at least, including information on households.
Journal: Applied Economics
Pages: 1705-1710
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600660713
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600660713
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1705-1710
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Miles
Author-X-Name-First: Daniel
Author-X-Name-Last: Miles
Author-Name: Maximo Rossi
Author-X-Name-First: Maximo
Author-X-Name-Last: Rossi
Title: Learning about one's relative position and subjective well-being
Abstract:
In this article we show evidence which suggests that changes in an
individual's relative position affects his subjective well-being (SWB). In
this sense, our findings are in line with those who argue that a felicity
function should take into account both absolute and relative position. Our
results are based on a simple experimental design to discuss whether
learning about one's relative position affects SWB. Additionally, using
nonexperimental data we find a significant association between SWB and
relative wage.
Journal: Applied Economics
Pages: 1711-1718
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600660721
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600660721
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1711-1718
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Malgarini
Author-X-Name-First: Marco
Author-X-Name-Last: Malgarini
Author-Name: Patrizia Margani
Author-X-Name-First: Patrizia
Author-X-Name-Last: Margani
Title: Psychology, consumer sentiment and household expenditures
Abstract:
The aim of this article is to assess the role of the Italian Consumer
Sentiment Index (CSI) as an autonomous driving force of consumption
decisions. We test for the presence of 'rule of thumb' consumers as
originally proposed by Campbell and Mankiw (1991), using sentiment
measures distinguished by respondent's working condition and consumption
data disaggregated according to durability, over the period 1982-2004. The
consumption-sentiment relationship is found to be stronger for some groups
of households and for some particular categories of expenditures.
Moreover, sentiment seems to be not well explained by economic
fundamentals alone, capturing also the effects of the political cycle and
exceptional circumstances.
Journal: Applied Economics
Pages: 1719-1729
Issue: 13
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606351
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606351
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Handle: RePEc:taf:applec:v:39:y:2007:i:13:p:1719-1729
Template-Type: ReDIF-Article 1.0
Author-Name: Saralees Nadarajah
Author-X-Name-First: Saralees
Author-X-Name-Last: Nadarajah
Author-Name: Samuel Kotz
Author-X-Name-First: Samuel
Author-X-Name-Last: Kotz
Title: Two generalized beta distributions
Abstract:
Two new distributions which contain several of the known generalizations
of the beta distribution as particular cases are introduced. Various
structural properties of each distribution are derived, including its cdf,
moment generating function, characteristic function, moments, mean
deviation about the mean, mean deviation about the median, entropy,
asymptotic distribution of extreme order statistics, maximum-likelihood
estimates and the Fisher information matrix.
Journal: Applied Economics
Pages: 1743-1751
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428062
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428062
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1743-1751
Template-Type: ReDIF-Article 1.0
Author-Name: Susana Santos
Author-X-Name-First: Susana
Author-X-Name-Last: Santos
Title: Modelling economic circuit flows in a social accounting matrix framework. An application to Portugal
Abstract:
Aggregated Social Accounting Matrices (SAMs) will be built for the
Portuguese economy in 1997, 1998 and 1999, based on the country's national
accounts statistics. The SAMs will be shown as a working instrument for
quantifying the flows in the economic circuit and for simulating the
effects resulting from changes in such flows. The economic flows
associated with the government subsectors will be emphasized, whilst
accounting and fixed-price multipliers will be calculated to facilitate
the study of the effects resulting from changes in the government's
expenditure, which will also be subjected to a test on their veracity.
Journal: Applied Economics
Pages: 1753-1771
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447864
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447864
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1753-1771
Template-Type: ReDIF-Article 1.0
Author-Name: Haoming Liu
Author-X-Name-First: Haoming
Author-X-Name-Last: Liu
Author-Name: Jinli Zeng
Author-X-Name-First: Jinli
Author-X-Name-Last: Zeng
Title: Airline passenger fatality and the demand for air travel
Abstract:
After the 11 September tragedy, 20% of the scheduled US airline flights
were cancelled and the passenger load factor was down to 56% from 66.6% a
year ago. Was the high death toll or the nature of the attack itself
responsible for this dramatic decline? Using the US data, we find that the
demand for air travel did fall in years of relatively high fatality rate,
but the demand is not sensitive to whether the high fatality rate is due
to any terrorist activities. Our estimation results suggest that even
after controlling for the sharp increase in the fatality rate because of
the 11 September tragedy, a considerable proportion of the decline in
demand for air travel that year is still unexplained. This evidence could
suggest that there has been a fundamental shift in consumers' perception
of air travel safety in the aftermath of the tragedy.
Journal: Applied Economics
Pages: 1773-1781
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840701371822
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701371822
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1773-1781
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Macas Nunes
Author-X-Name-First: Paulo
Author-X-Name-Last: Macas Nunes
Author-Name: Tiago Neves Sequeira
Author-X-Name-First: Tiago
Author-X-Name-Last: Neves Sequeira
Author-Name: Zelia Serrasqueiro
Author-X-Name-First: Zelia
Author-X-Name-Last: Serrasqueiro
Title: Firms' leverage and labour productivity: a quantile approach in Portuguese firms
Abstract:
We show that the leverage of Portuguese firms tends to negatively affect
its labour productivity for firms with relatively lower labour
productivity but to positively affect this variable for firms in the
right-hand side of the productivity distribution. This is particularly
important in a country where labour productivity is persistently lower
compared with the richer countries in Europe. Thus, we have concluded
that, controlling for the usual effects, increasing leverage cannot be a
solution for the less productive (and consequently the majority) of
Portuguese firms.
Journal: Applied Economics
Pages: 1783-1788
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707076
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707076
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1783-1788
Template-Type: ReDIF-Article 1.0
Author-Name: C. Emre Alper
Author-X-Name-First: C.
Author-X-Name-Last: Emre Alper
Author-Name: Ayse Mumcu
Author-X-Name-First: Ayse
Author-X-Name-Last: Mumcu
Title: Interaction between price, quality and country of origin when estimating automobile demand: the case of Turkey
Abstract:
We estimate the demand for new automobiles in Turkey immediately
following its entry to Custom Union with the European Union in 1996. We
use quarterly data on price, quantity, quality, country of origin and
product characteristics of the new automobile sales market and
macroeconomic variables to estimate market demand during 1996-1999 using
dynamic Generalized Least Squares Estimation method. In addition to
including quality, we also include country of origin, to serve as another
proxy for quality and to capture differences in cost-increasing and
demand-reducing trade restrictions imposed on cars from certain countries
as well as taste differences. Our results indicate that country of origin
as well as quality matter for automobile demand in Turkey. Consistent with
other aggregate automobile demand models for other countries, the demand
for new automobiles is found to be price inelastic in the short run.
Journal: Applied Economics
Pages: 1789-1796
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707050
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707050
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1789-1796
Template-Type: ReDIF-Article 1.0
Author-Name: Paola Rota
Author-X-Name-First: Paola
Author-X-Name-Last: Rota
Title: Unidimensionality, asymmetry and (S,s) rules in labour demand
Abstract:
We analyse the conditions under which an (S,s) rule may be implemented in
the case of labour demand. The (S,s) rule implies a specific ordering of
choices: downward adjustment, nonadjustment and upward adjustment with the
decision of inaction lying crucially in the middle. This requires an exact
negative relation between the choice-specific error terms. The particular
ordering of choices implied may be estimated by an ordered probit. We test
the (S,s) rule nesting the ordered probit within a multinomial model with
correlated error terms. The restriction to a univariate error distribution
is rejected by the data.
Journal: Applied Economics
Pages: 1797-1815
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690207
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690207
File-Format: text/html
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1797-1815
Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Title: What factors inspire the high entry flow in Taiwan's manufacturing industries-A count entry model approach
Abstract:
Why is the entry flow of the manufacturing sector extremely high in
Taiwan, and does it contribute to the prevailing entrepreneurship? This
article aims to explore what factors inspire potential entrants to go into
an industry. Based on a theoretical formulation of the Poisson probability
entry model, a count data model is employed to investigate the
determinants of entry flows. The empirical results reveal that traditional
entry barriers indeed lower the entry flow. The entry incentives,
including price cost margin and industry growth, play a lesser role at
attracting new firms, while alternatively the market size acts as a better
proxy of an entry incentive in explaining entry flows. Incumbents'
responses to entry, R&D and advertising intensity are found to be
associated with a significant negative impact on entry flows. This article
also finds that there is a higher bound of covariate of entry, about 10%,
that can be attributed to the immeasurable personality of
entrepreneurs-entrepreneurship. Rather be the chicken's beak than be the
cow's behind.1 The trade that might cause life hazard will be dealt, while
the trade that might cause a loss will not be dealt. Two traditional
Chinese proverbs
Journal: Applied Economics
Pages: 1817-1831
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690181
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690181
File-Format: text/html
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1817-1831
Template-Type: ReDIF-Article 1.0
Author-Name: Taewoo You
Author-X-Name-First: Taewoo
Author-X-Name-Last: You
Author-Name: Hongmin Zi
Author-X-Name-First: Hongmin
Author-X-Name-Last: Zi
Title: The economic crisis and efficiency change: evidence from the Korean construction industry
Abstract:
This article gauges and analyses different types of efficiency in the
Korean construction industry for the period 1996 to 2000, which includes
the country's economic crisis. We also identify several important factors
of the efficiency change and provide some managerial implications for the
reason why most Korean construction firms had failed to maintain or
enhance efficiency during this period. The results show that efficiency
measures decreased significantly during the sample period and that there
are large differences over the period before and after the economic
crisis. Unlike many other industries, the low level of cost efficiency of
the construction industry is mainly due to allocative inefficiency
(inappropriate mix of input factors) rather than technical inefficiency.
The low level of allocative efficiency, together with the strong
relationship between institutional investors and efficiency, implies that
the agency problem between managers and owners had prevailed in the Korean
construction industry, and that construction firms could increase
efficiency by minimizing agency costs. The study also implies that firms
having failed in decreasing the leverage ratio, disposing unproductive
assets and increasing the receivables overdue turnover could not avoid the
efficiency decrease.
Journal: Applied Economics
Pages: 1833-1842
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690199
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690199
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1833-1842
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Anyadike-Danes
Author-X-Name-First: Michael
Author-X-Name-Last: Anyadike-Danes
Title: How well are women doing? Female non-employment across UK regions
Abstract:
Discussions of the UK's recent labour market performance commonly mention
the contrasting trends in the unemployment rate (down), the employment
rate (up) and the inactivity rate (flat). These same commentaries also
notice that the 'flatness' of the overall inactivity rate masks
contrasting trends by sex, with male rates (slowly rising) and female
rates (slowly falling) and then proceed to discuss male inactivity in some
detail before concluding. Bypassing the composition of female inactivity,
these commentaries fail to notice that the male and the female proportions
of the population not working by reason of sickness or disability are
quite similar. Equally they have rarely noticed that male and female
non-employment rates display a very similar regional hierarchy with female
rates in the 'North' as much as 50% higher than those in the 'South', and
that there is an even steeper North-South gradient in some of the
components of non-employment. For example, sickness and disability rates
for females in the North are up to 10% of the working age population,
while in the South rates are typically less than half that size.
Journal: Applied Economics
Pages: 1843-1854
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427957
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427957
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1843-1854
Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsiu Laih
Author-X-Name-First: Chen-Hsiu
Author-X-Name-Last: Laih
Author-Name: Bin Lin
Author-X-Name-First: Bin
Author-X-Name-Last: Lin
Author-Name: Kuan-Yu Chen
Author-X-Name-First: Kuan-Yu
Author-X-Name-Last: Chen
Title: Effects of the optimal port queuing pricing on arrival decisions for container ships
Abstract:
When arriving at a busy port, a container ship usually need to queue in
anchorage waiting for a berth. If the port establishes a toll scheme, the
ship may rationally adjust sailing speed and time to save the cost,
otherwise she has to pay for berthing on time. Consequently container
ships' arrival times at the port will be dispersed, and the queuing
situation can be decreased. In this article, an optimal step toll scheme
by cost equilibrium approach is designed, and all values of equilibrium
queuing cost and operating cost under the scheme are obtained. According
to equilibrium results in this study, we show container ships that pay the
toll to berth a queuing port are those altered their original arrival
times at the port before the toll established. In addition, those ships'
arrival time adjusting decisions from the nontoll to the optimal step toll
cases can be well investigated before tolling a queuing port.
Journal: Applied Economics
Pages: 1855-1865
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500447765
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447765
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1855-1865
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Yuan Leon Li
Author-X-Name-First: Ming-Yuan
Author-X-Name-Last: Leon Li
Title: Volatility states and international diversification of international stock markets
Abstract:
This study uses a Markov-switching technique to identify the volatility
state of international stock markets. Further, we consider four possible
state combinations of the individual and world stock markets to examine an
interesting issue regarding the relationship between international
diversification and market volatility. Last, we adopt a framework based on
the state-varying correlation to establish a more efficient international
investment strategy. Our empirical results are consistent with the two
following notions. First, the situation of both the individual and world
stock markets during high volatility states will be associated with the
minimum benefit of risk-reduction from international diversification and a
maximum cross-market correlation. Second, by incorporating the character
of state-varying correlation into the establishment of an international
portfolio, we can create a more efficient investment strategy with less
risk, or greater return for a given risk.
Journal: Applied Economics
Pages: 1867-1876
Issue: 14
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500428088
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428088
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Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1867-1876
Template-Type: ReDIF-Article 1.0
Author-Name: Derek Hum
Author-X-Name-First: Derek
Author-X-Name-Last: Hum
Author-Name: Wayne Simpson
Author-X-Name-First: Wayne
Author-X-Name-Last: Simpson
Title: The legacy of immigration: labour market performance and education in the second generation
Abstract:
Previous research finds that the children of immigrants, or the second
generation, earn at least as much as other native born but that there are
persistent ethnic differences in the intergenerational transmission of
education and wages. We explain why these results are not incompatible and
extend the empirical evidence in several directions using the Canadian
Survey of Labour and Income Dynamics. First, we estimate a model of wages,
earnings and hours worked using modern econometric techniques to
corroborate earlier US results of complete integration by the second
generation in the labour market. We find that ethnic differences in labour
market performance are significant, but that these difference do not alter
conclusions about the relative performance of the second generation.
Second, we find a source of superior labour market performance for the
second generation in higher educational attainment, which constitutes an
important legacy of immigration that should not be ignored. Third, we find
that the definition of the second generation matters. Men and women with
two immigrant parents achieve about one additional year of education,
while those with one immigrant parent achieve about one-half that
educational advantage. We conclude that the education effect of an
immigrant mother or father are comparable.
Journal: Applied Economics
Pages: 1985-2009
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690223
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690223
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1985-2009
Template-Type: ReDIF-Article 1.0
Author-Name: Duane Graddy
Author-X-Name-First: Duane
Author-X-Name-Last: Graddy
Author-Name: Thomas Strickland
Author-X-Name-First: Thomas
Author-X-Name-Last: Strickland
Title: Public information as a deterrent to environmental infractions
Abstract:
Past studies of the impact of publicly announced violations of
environmental laws on the market value of the offending firms have yielded
equivocal results. A particularly troubling aspect of this research is
whether the market imposes a reputation penalty for such violations. This
article uses the event-study methodology to estimate the effect of
announced environmental infractions on the market returns of the
violators. Stockholders experienced significant negative abnormal returns
in the event window. Cross-sectional analysis showed these cumulative
losses to be a function of firm size, type of legal action and specific
toxin. The reputation component of abnormal returns was influenced by
these factors as well.
Journal: Applied Economics
Pages: 1961-1972
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707084
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707084
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1961-1972
Template-Type: ReDIF-Article 1.0
Author-Name: R. Borghesi
Author-X-Name-First: R.
Author-X-Name-Last: Borghesi
Title: The late-season bias: explaining the NFL's home-underdog effect
Abstract:
This article examines price efficiency and out-of-sample predictability
in the NFL point-spread betting market. Our main contribution to the
existing literature is the identification of a persistent increase in bias
magnitude during the final few weeks of each season. We demonstrate that
this anomaly causes the much-documented home-underdog effect. We also
offer evidence that the limits of arbitrage have enabled this phenomenon
to persist for decades. Finally, we use several regression models to
confirm our univariate analysis and show that these models can be used to
implement profitable betting strategies. The predictive models presented
differ from those in the prior literature by taking into account both
short-term and aggregate biases.
Journal: Applied Economics
Pages: 1889-1903
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690314
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690314
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1889-1903
Template-Type: ReDIF-Article 1.0
Author-Name: Gordon Tang
Author-X-Name-First: Gordon
Author-X-Name-Last: Tang
Author-Name: Wai Cheong Shum
Author-X-Name-First: Wai Cheong
Author-X-Name-Last: Shum
Title: The risk-return relations: evidence from the Korean and Taiwan stock markets
Abstract:
This article examines the risk-return relations conditional on up and
down market periods in the Korean and Taiwan stock markets. Based on
statistical tests adjusted for the effects of heteroskedasticity and
autocorrelation of the residuals, beta is found positively (negatively)
related to realized returns in up (down) markets. However, the results are
sensitive to portfolio aggregation methods. Its role as a risk measure
vanishes in down markets for the two-way (beta-size and size-beta) sorted
portfolios. Unsystematic risk is significantly and positively priced only
in up markets and mainly for beta-sorted portfolios while total risk is
correctly priced except in Taiwan during down markets. Moreover, the
impact of skewness and kurtosis on realized returns is not only sensitive
to portfolio aggregation methods but also different across stock markets.
They are found to be more relevant risk characteristics in the Korean than
in the Taiwan stock market.
Journal: Applied Economics
Pages: 1905-1919
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690280
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690280
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1905-1919
Template-Type: ReDIF-Article 1.0
Author-Name: Darrin Downes
Author-X-Name-First: Darrin
Author-X-Name-Last: Downes
Author-Name: Winston Moore
Author-X-Name-First: Winston
Author-X-Name-Last: Moore
Title: Does the exchange rate regime influence the relationship between the output gap and the current account?
Abstract:
Estimates of the output gap are useful for identifying the sustainable
level of noninflationary output growth in countries with a flexible
exchange rate regime. For nations with a fixed exchange rate, however,
domestic prices are inexorably linked to the prices of its main trading
partners and are unlikely to bear little relation to the output gap. This
article uses data on 45 developed and developing countries between 1970
and 2004 to show that a positive output gap in a country with a fixed
exchange rate is more liable to be reflected in an imbalance on the
external current account.
Journal: Applied Economics
Pages: 1955-1960
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707035
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707035
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1955-1960
Template-Type: ReDIF-Article 1.0
Author-Name: M. Solaiman Miah
Author-X-Name-First: M. Solaiman
Author-X-Name-Last: Miah
Author-Name: Virginia Wilcox-Gok
Author-X-Name-First: Virginia
Author-X-Name-Last: Wilcox-Gok
Title: Do the sick retire early? Chronic illness, asset accumulation and early retirement
Abstract:
Our objective is to determine how chronic illness affects asset
accumulation and retirement. Previous studies have found that poor health
leads to early retirement, but those studies failed to look at the
indirect impact of chronic illness on retirement. Using data from the
Health and Retirement Study, we define an illness as chronic if the
individual reports having asthma, cancer, heart disease, stroke or
diabetes for four or more years. We first estimate how a chronic illness
influences asset accumulation. We then estimate how asset accumulation and
current poor health influence retirement. We observe that the vast
majority of the chronically ill population do not report their general
health to be poor nor do they report functional limitations in activities
of daily living. Nevertheless, our results indicate that chronic illness
leads these people to accumulate fewer assets during their working years
and consequently retire later. Neither researchers nor policy-makers
discussing the many critical issues surrounding illness and retirement
have addressed this issue.
Journal: Applied Economics
Pages: 1921-1936
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690165
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690165
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1921-1936
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Li
Author-X-Name-First: Matthew
Author-X-Name-Last: Li
Title: Wealth, volume and stock market volatility: case of Hong Kong (1993-2001)
Abstract:
This article attempts to answer the question of whether the gain and loss
in property market speculations and rate of information flow play a
significant role in stock market volatility in Hong Kong. To test for our
wealth-volume-volatility hypothesis, two different measures of volatility:
absolute (absolute value of SD from mean with monthly dimension) and
conditional (EGARCH) are used and results are compared. In both measures,
we find evidence of a statistical presence of a wealth effect on stock
market volatility, particularly in the investment of luxury class of
property in Hong Kong. To account for this result, we apply the prospect
theory, house money effect and the newly developed conditional confidence
theory. Although we fail to establish a volume-volatility relationship in
our estimation, we offer additional dimensions to the explanation of our
observation.
Journal: Applied Economics
Pages: 1937-1953
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707019
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707019
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1937-1953
Template-Type: ReDIF-Article 1.0
Author-Name: David Giles
Author-X-Name-First: David
Author-X-Name-Last: Giles
Title: Survival of the hippest: life at the top of the hot 100
Abstract:
We analyse the survival characteristics of recordings that reached the
number one spot on the US popular music charts over the period 1955 to
2003. Our results show that there has been a statistically significant
change in the time spent at number one since 'album cuts' were included in
the compilation of Billboard 's Hot 100. Survival time is significantly
improved if the recording is by a female solo artist, or if it is an
instrumental tune. We also find a significant 'Elvis effect'. 'I'll never
be a saint, it's true. I'm too busy surviving!' (Madonna, 1994)
Journal: Applied Economics
Pages: 1877-1887
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707159
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707159
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1877-1887
Template-Type: ReDIF-Article 1.0
Author-Name: Hsuan-Chi Chen
Author-X-Name-First: Hsuan-Chi
Author-X-Name-Last: Chen
Author-Name: Cyuan-Jhan Jhou
Author-X-Name-First: Cyuan-Jhan
Author-X-Name-Last: Jhou
Author-Name: Hsiu-Chuan Yeh
Author-X-Name-First: Hsiu-Chuan
Author-X-Name-Last: Yeh
Title: Signalling by underwriter retention rate in the IPO market
Abstract:
Underwriters in Taiwan have to purchase 10-25% of shares offered in
initial public offerings (IPOs) for their own accounts. We present a
signalling model showing that the underwriter retention rate can serve as
a signal of firm value to investors because underwriters are investors as
well. This mechanism can reduce information asymmetry between issuers and
investors. The model shows that when underwriters retain more proportion
of IPO shares, in equilibrium, the initial return is greater and the
subscription success rate is lower. We further test the propositions using
616 IPO firms in Taiwan for the period 1998-2004. Overall, the empirical
results support the propositions developed from the signalling model.
Journal: Applied Economics
Pages: 1973-1983
Issue: 15
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600706987
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600706987
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Handle: RePEc:taf:applec:v:39:y:2007:i:15:p:1973-1983
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Title: Inflation targeting supported by managed exchange rate
Abstract:
We compare, on a welfare loss basis, possible inflation targeting regimes
supported by different exchange rate rules. For model parametrization, we
estimate a forward looking monetary policy rule for Trukey. When variable
inflation targets are taken into consideration, as opposed to the fixed
targets used in prior research that use data from developed countries,
forward looking Taylor rules provide a reasonable description of Central
Bank behaviour in Turkey. By applying a calibration based on estimated
parameters, we compare the loss functions under flexible inflation
targeting and strict inflation targeting while taking into consideration
the supporting regimes, namely a flexible exchange rate and a managed
floating exchange rate. We find that the welfare loss function caused by
four simultaneous shocks, namely a foreign interest rate shock, a monetary
policy shock, a foreign output shock and a domestic output shock, is
minimized under the flexible inflation targeting regime supported by a
managed floating exchange rate rule.
Journal: Applied Economics
Pages: 2011-2026
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707068
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707068
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2011-2026
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Xu
Author-X-Name-First: Xiao
Author-X-Name-Last: Xu
Author-Name: Gail Jensen
Author-X-Name-First: Gail
Author-X-Name-Last: Jensen
Title: Managed care and the near-elderly: effects of plan enrollment on functionality
Abstract:
This paper examines the effects of enrollment in a health maintenance
organization (HMO) or a preferred provider organization (PPO) on the
functional status of near-elderly adults (aged 55-64), compared to
traditional fee-for-service (FFS) plans. A sample of 1306 near-elderly
adults with employer-sponsored health insurance are drawn from the
2000-2002 waves of the Health and Retirement Study, a nationally
representative panel survey of community-dwelling adults. Regression
models are estimated to assess the effects of different types of insurance
plans on functionality, as measured by whether or not the individual has
any functional limitations. The potential influence of selection bias into
alternative types of plans is addressed by limiting the sample to
near-elders without a choice of health plans. The effects of HMOs on
functionality are shown to be comparable to those of FFS plans among the
general near-elderly population. However, significant adverse effects of
HMO enrollment on functional status are observed among near-elders with
chronic conditions. PPO enrollees have similar functional outcome to FFS
enrollees, even among those with chronic conditions. The observed
differences in functional outcome across plans have important implications
for the practicality of managed care plans serving older adults.
Journal: Applied Economics
Pages: 2027-2037
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707217
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707217
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2027-2037
Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Falck
Author-X-Name-First: Oliver
Author-X-Name-Last: Falck
Title: Survival chances of new businesses: do regional conditions matter?
Abstract:
This article analyses the effects of industry-, regional- and firm-level
characteristics on the post-entry performance of new businesses by means
of an econometric survival time model. First preference is given to an
accelerated failure time model assuming a log-logistic distribution. The
data involve a representative sample of businesses in the private sector
of West Germany during 1993 to 2002 period. The results demonstrate that
the regional dimension is most important; whereas firm-level
characteristics play a subordinated role.
Journal: Applied Economics
Pages: 2039-2048
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749615
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749615
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2039-2048
Template-Type: ReDIF-Article 1.0
Author-Name: Vaughan Dickson
Author-X-Name-First: Vaughan
Author-X-Name-Last: Dickson
Title: Concentration history and market power in US manufacturing industries
Abstract:
For a 1963-1992 panel of US manufacturing industries, the relationship
between seller concentration and both price-cost margins (PCMs) and prices
is investigated for industries divided by whether concentration has
recently increased or decreased. Regressions of PCM in levels and first
differences, and price equations in first differences, establish that the
positive effect of concentration on prices and profits is always weaker in
industries where concentration has recently increased and always stronger
in industries where concentration has recently decreased. These results
are attributed to the different endogeneity biases in the two samples.
Increasing concentration industries are more likely the ones where leading
firms have lowered prices to gain share, while decreasing concentration
industries are more likely the ones where smaller firms have lowered
concentration by lowering prices. An additional conclusion is that the
cost-reducing effects of changes in concentration are greater for
increasing concentration industries, meaning that increasing concentration
industries have lower price increases compared to decreasing concentration
industries.
Journal: Applied Economics
Pages: 2049-2055
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749466
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749466
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2049-2055
Template-Type: ReDIF-Article 1.0
Author-Name: Josse Delfgaauw
Author-X-Name-First: Josse
Author-X-Name-Last: Delfgaauw
Title: Where to go? Workers' reasons to quit and intra- vs. interindustry job mobility
Abstract:
We show that workers' reasons for quitting their job affect their
decision to stay in or leave their industry, using survey data among
public sector employees in the Netherlands. Workers quitting for e.g. pay,
work pressure, or job duties move relatively often to another industry, in
contrast to workers quitting for commuting time or the atmosphere at work.
This suggests that workers use their experience in the initial job to
update their expectations on other jobs in the industry, as the first set
of job aspects is more likely to be related among jobs within an industry
than the latter. Furthermore, it is shown that workers' reasons to quit
fully explain the differences in wage growth between intra- and
interindustry job movers. Lastly, we find that workers who quit for pay or
management often leave the public sector altogether.
Journal: Applied Economics
Pages: 2057-2067
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707092
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707092
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2057-2067
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Kargbo
Author-X-Name-First: J. M.
Author-X-Name-Last: Kargbo
Title: Forecasting agricultural exports and imports in South Africa
Abstract:
The implementation of wide-ranging policy reforms, including trade and
exchange rate policies, is improving the efficiency of the South African
economy and its reintegration into the global economy with rapid export
expansion. Agricultural exports in the Southern African Customs Union
increased from R8.14 billion in 1995 to R23.0 billion in 2003, whilst
agricultural imports rose from R6.83 billion to R13.84 billion during the
same period. This article uses alternative approaches to forecasting
agricultural exports and imports in South Africa. The models used include:
exponential smoothing, autoregressive integrated moving average (ARIMA),
vector autoregression (VAR), Engle-Granger (EG) single-equation and vector
error-correction models (VECM). We found that the ARIMA and EG methods
outperform the VAR and VECM according to Theil's U-statistic. The VAR
outperforms the VECM in forecasting agricultural exports in South Africa.
The combined forecasts have a lower variance compared to individual
forecasts, thereby, reducing the risks of making wrong decisions based on
the forecasts. The article provides empirical evidence that is beneficial
to policymakers and business leaders in South Africa as they strive to
reduce poverty and inequality and increase economic growth.
Journal: Applied Economics
Pages: 2069-2084
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707183
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707183
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2069-2084
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Morley
Author-X-Name-First: Bruce
Author-X-Name-Last: Morley
Author-Name: Dennis Thomas
Author-X-Name-First: Dennis
Author-X-Name-Last: Thomas
Title: Attendance demand and core support: evidence from limited-overs cricket
Abstract:
In this paper we construct and estimate a model for match attendances in
English one-day, limited-overs league cricket. Our dataset separates 'pay
at gate' spectators from club members, enabling us to distinguish between
the attendance decisions of casual spectators and those of the,
potentially, more committed 'core' supporters. In addition to providing a
more direct analysis of the relatively underdeveloped issue of 'core
support', we also investigate variability within the core. Apart from
providing further evidence regarding demand determination in professional
team sports we consider some specific policy implications particular to
the 'peculiar' sport of cricket.
Journal: Applied Economics
Pages: 2085-2097
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707225
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707225
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2085-2097
Template-Type: ReDIF-Article 1.0
Author-Name: Nasri Harb
Author-X-Name-First: Nasri
Author-X-Name-Last: Harb
Title: Trade between Euro zone and Arab countries: a panel study
Abstract:
We construct an aggregate data panel to estimate price and income
elasticities of the Arab countries imports from and exports to Euro zone.
We study the nonstationarity of our series and verify the cointegration
hypothesis among the variables using Pedroni's (2004) heterogeneous panel
cointegration tests. The panel data circumvent the problem of short span
sample and increase the power of the nonstationarity tests. Then, we
estimate the idiosyncratic and panel cointegrating vectors using dynamic
ordinary least squares (DOLS) (Kao and Chiang, 2000), fully modified
ordinary least squares (FMOLS) (Phillips and Hansen, 1990) and group mean
DOLS and FMOLS developed by Pedroni (2000, 2001). Our variables are shown
to be cointegrated. Arab imports from Euro zone countries are income
inelastic, but price elastic. Results of export function are not
conclusive and depend on the used estimator.
Journal: Applied Economics
Pages: 2099-2107
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722307
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722307
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2099-2107
Template-Type: ReDIF-Article 1.0
Author-Name: Lean Hooi Hooi
Author-X-Name-First: Lean Hooi
Author-X-Name-Last: Hooi
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Are Asian real exchange rates mean reverting? Evidence from univariate and panel LM unit root tests with one and two structural breaks
Abstract:
There are a number of studies that examine the purchasing power parity
(PPP) hypothesis. The empirical findings from the extant literature for
the PPP hypothesis are mixed. This article applies univariate and panel
Lagrange Multiplier (LM) unit root tests with one and two structural
breaks to real exchange rates for 15 Asian countries. The univariate LM
unit root tests find evidence of PPP for two-thirds of the sample. The
results from the panel LM unit root test support long-run PPP for the
Asian countries in the sample. The results from the LM panel unit root
tests differ from those of existing panel unit root tests of PPP for Asian
countries that have not allowed for the existence of structural breaks.
Journal: Applied Economics
Pages: 2109-2120
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722331
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722331
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2109-2120
Template-Type: ReDIF-Article 1.0
Author-Name: Bilin Neyaptı
Author-X-Name-First: Bilin
Author-X-Name-Last: Neyaptı
Author-Name: Fatma Taskın
Author-X-Name-First: Fatma
Author-X-Name-Last: Taskın
Author-Name: Murat Ungor
Author-X-Name-First: Murat
Author-X-Name-Last: Ungor
Title: Has European Customs Union Agreement really affected Turkey's trade?
Abstract:
The numerous discussions regarding the advantages and disadvantages of
Turkey's becoming a member of the Customs Union has been inconclusive. The
empirical analysis that mostly focus on the changes in the volume of trade
without much regard to the conjectural changes have also been
insufficient. This study attempts to shed light on this issue in a formal
analysis of Turkey's international trade by empirically accounting for the
changes before and after the Customs Union Agreement (CUA). In doing so,
we explicitly account for the concurrent changes in the macroeconomic
environment that may have affected Turkey's trade with the rest of the
world. Our empirical findings indicate that CUA has not only positively
impacted on Turkey's trade, but also led to changes in the behaviour of
both exports and imports with regards to their responsiveness to
underlying variables.
Journal: Applied Economics
Pages: 2121-2132
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600735390
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735390
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2121-2132
Template-Type: ReDIF-Article 1.0
Author-Name: Jae-Young Lim
Author-X-Name-First: Jae-Young
Author-X-Name-Last: Lim
Title: The effect of patient's asymmetric information problem on elderly use of medical care
Abstract:
It has been proposed that the patient's relative ignorance about
medicine, 'asymmetry of information between doctor and patient', should
place a patient in a disadvantaged position when purchasing medical care.
Even if rapidly developing information technologies can enhance the
patient's access to health information, a patient doesn't have enough
ability to understand, interpret and evaluate it. So, the doctor's effort
at sincerely helping patient understand and utilize health information by
effective communication with patient might improve the patient's
asymmetric information problem and affect the patient's use of medical
care by way of its being a source of patient's solid trust on doctor. This
research seeks to determine whether a doctor's effort, mentioned earlier
can affect the elderly use of medical care. This study used data from a
survey sample of people aged more than 65 living in Seoul and Chuncheon,
Korea. The results suggest the doctor's effort level has a statistically
significant positive effect on the elderly use of medical care, which
suggest a doctor's effort of effectively communicating with patient would
ameliorate patient's information problem and it could be a source of
patient's trust on doctor, so this trust would lead a patient to consume
more medical care.
Journal: Applied Economics
Pages: 2133-2142
Issue: 16
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707142
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707142
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Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2133-2142
Template-Type: ReDIF-Article 1.0
Author-Name: Harald Badinger
Author-X-Name-First: Harald
Author-X-Name-Last: Badinger
Title: Market size, trade, competition and productivity: evidence from OECD manufacturing industries
Abstract:
This article investigates empirically the links between market size,
trade, competition and productivity, using a cross-section of 11 OECD
countries and 11 manufacturing industries over the period 1995 to 2000. To
deal with endogeneity concerns we extend the Frankel and Romer (1999)
approach to construct instruments for both trade and competition. We find
that larger, more integrated markets exhibit more competition (lower
markups) and higher productivity, in line with the theoretical model by
Melitz and Ottaviano (2005). The pro-competitive effect of trade accounts
for approximately 30% of trade's total productivity effects.
Journal: Applied Economics
Pages: 2143-2157
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707282
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707282
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2143-2157
Template-Type: ReDIF-Article 1.0
Author-Name: Didier Soopramanien
Author-X-Name-First: Didier
Author-X-Name-Last: Soopramanien
Author-Name: Robert Fildes
Author-X-Name-First: Robert
Author-X-Name-Last: Fildes
Author-Name: Alastair Robertson
Author-X-Name-First: Alastair
Author-X-Name-Last: Robertson
Title: Consumer decision making, E-commerce and perceived risks
Abstract:
This article studies how adoption and usage behaviour of the Internet and
online shopping, respectively influence the preference to use electronic
commerce to purchase different types of products. We empirically model the
preference for electronic commerce when consumers have to buy different
types of products and thus face different types of risks (Cox and Rich,
1964). Unlike previous research, we find that consumers who have
previously shopped online, display stronger preferences to buy products on
the Internet irrespective of the perceived level of product-specific risks
of online shopping. This article provides an interesting and novel insight
into how both adoption and usage of electronic commerce impact on the
attitude and risk perception of buying less predictable (more risky)
products on the Internet.
Journal: Applied Economics
Pages: 2159-2166
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749565
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749565
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2159-2166
Template-Type: ReDIF-Article 1.0
Author-Name: James Ang
Author-X-Name-First: James
Author-X-Name-Last: Ang
Title: Are saving and investment cointegrated? The case of Malaysia (1965-2003)
Abstract:
This article examines whether domestic saving rate leads to higher
domestic investment rate in the case of Malaysia. We argue that the
results obtained from cross-sectional studies are not able to address this
issue satisfactorily and highlight the importance of individual country
case studies. Using the recently developed autoregressive distributed lag
bounds testing procedure, the results reveal a robust cointegrated
relationship between domestic saving and investment rates during the
period 1965 to 2003.
Journal: Applied Economics
Pages: 2167-2174
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722281
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722281
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2167-2174
Template-Type: ReDIF-Article 1.0
Author-Name: Kostas Tsekouras
Author-X-Name-First: Kostas
Author-X-Name-Last: Tsekouras
Author-Name: Dimitris Skuras
Author-X-Name-First: Dimitris
Author-X-Name-Last: Skuras
Author-Name: Irene Daskalopoulou
Author-X-Name-First: Irene
Author-X-Name-Last: Daskalopoulou
Title: Is productive inefficiency a fatal disease? The effects of technical and scale efficiency in firm exit: the case of the Greek rubber and plastic industry
Abstract:
This article presents an integrated framework for testing the effects of
productive efficiency, i.e. technical efficiency (TE) and scale efficiency
(SE), on firm exit, facilitating the identification of the effects,
causing a firm's operation at increasing or decreasing returns to scale. A
panel data set of firms in the plastics and rubber industry of the Greek
manufacturing sector is used to study the effect that TE and SE may have
on a firm's probability to exit. Results reveal that technical efficiency
is the most critical factor influencing firm exit, while SE exerts a
quadratic effect on the probability to exit.
Journal: Applied Economics
Pages: 2175-2187
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749482
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749482
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2175-2187
Template-Type: ReDIF-Article 1.0
Author-Name: Sainan Jin
Author-X-Name-First: Sainan
Author-X-Name-Last: Jin
Author-Name: Liangjun Su
Author-X-Name-First: Liangjun
Author-X-Name-Last: Su
Title: Forecasting the car penetration rate (CPR) in China: a nonparametric approach
Abstract:
With strong economic growth, the auto industry has made great
breakthroughs in recent years and has become a backbone industry in China,
while cars play an increasingly important role, and are now the principal
part of the auto industry. Both China's government and academic circles
take strong interest in the prediction of CPR (i.e. car penetration rate
or cars per thousand people), which will be the main guidance for the
future industry policy. We summarize the existing problems in recent
research and propose to use nonparametric methods to estimate the CPR and
its elasticity with respect to GDP per capita (GDPPC). The results
indicate that the nonparametric methods provide a much better fit than the
conventional OLS method, and more importantly, it captures the
nonlinearity of the elasticity of CPR with respect to GDPPC. Finally, we
predict future CPR in China.
Journal: Applied Economics
Pages: 2189-2195
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749631
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749631
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2189-2195
Template-Type: ReDIF-Article 1.0
Author-Name: Ansgar Belke
Author-X-Name-First: Ansgar
Author-X-Name-Last: Belke
Author-Name: Thorsten Polleit
Author-X-Name-First: Thorsten
Author-X-Name-Last: Polleit
Title: How the ECB and the US Fed set interest rates
Abstract:
Monetary policies of the European Central Bank (ECB) and US Fed can be
characterized by 'Taylor rules', that is both central banks seem to be
setting rates by taking into account the 'output gap' and inflation. We
also set up and tested Taylor rules which incorporate money growth and the
euro-dollar exchange rate, thereby improving the 'fit' between actual and
Taylor rule based rates. In general, Taylor rules appear to be a much
better way of describing Fed policy than ECB policy. Simulations suggest
that the ECB's short-term interest rates have been at a much lower level
in the last 2 years compared with what a Taylor rule would suggest.
Journal: Applied Economics
Pages: 2197-2209
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749623
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749623
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2197-2209
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Kargbo
Author-X-Name-First: Joseph
Author-X-Name-Last: Kargbo
Title: The effects of macroeconomic factors on South African agriculture
Abstract:
Significant research efforts have been devoted to understanding the
effects of macroeconomic factors on the agriculture sector. Analysing the
sources of volatility in the industry is critical for designing
appropriate policies to stabilize agricultural markets, reduce poverty and
increase economic growth. Agriculture is a competitive sector with prices
that are more flexible than those in nonagricultural sectors. This article
uses annual data over the 1957-2004 period and a vector error-correction
model in investigating the dynamic effects of exchange rates, money supply
and other macroeconomic variables on the agricultural sector in South
Africa. Overall, real exchange rates, interest rates, inflation and money
supply (M3) shocks have significant and persistent impacts on agricultural
output, prices received by farmers and farm input prices. M3 and interest
rate shocks tend to put agriculture in a cost-price squeeze. Agricultural
price movements are a source of macroeconomic instability in the country.
Real exchange rate shocks shift relative prices in favour of agriculture
in the long-run, thereby, boosting farm incomes and accelerating poverty
reduction in the country.
Journal: Applied Economics
Pages: 2211-2230
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600735374
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735374
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2211-2230
Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Cheng Hung
Author-X-Name-First: Jui-Cheng
Author-X-Name-Last: Hung
Author-Name: Shi-Jie Jiang
Author-X-Name-First: Shi-Jie
Author-X-Name-Last: Jiang
Author-Name: Chien-Liang Chiu
Author-X-Name-First: Chien-Liang
Author-X-Name-Last: Chiu
Title: Jump risk of Presidential election: evidence from Taiwan stock and foreign exchange markets
Abstract:
This article employs jump-diffusion models, including the ARJI model and
the GARCH-jump model, to examine jump intensity and volatility of Taiwan
stock and foreign exchange markets during a Presidential election period.
The empirical results indicate that, firstly, the ARJI model fits data
better than the GARCH-jump model. Secondly, the Presidential election
events enhance the jump intensity of both markets and the jump-induced
variance is higher than diffusion-induced variance. It reveals the
importance of the discrete jump process during a Presidential election
period, and might provide some implications for option pricing or hedging
strategy. Due to the intervention of the Central Bank in the foreign
exchange market during a Presidential election period, the results
indicate that jump intensity and volatility of jump size are more
moderate.
Journal: Applied Economics
Pages: 2231-2240
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749458
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749458
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2231-2240
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Lin
Author-X-Name-First: Eric
Author-X-Name-Last: Lin
Author-Name: Shih-Ying Wu
Author-X-Name-First: Shih-Ying
Author-X-Name-Last: Wu
Title: Lottery expenses and charitable contributions - Taiwan's experience
Abstract:
Individuals' contributions are affected by their lottery outlays if they
consider their spending of lottery funds on charities to be a substitute
for or a complement to their direct charitable contributions. This study
investigates the effect of lottery outlays on charitable contributions
based on the experience of lottery introduction in Taiwan. The estimates
reveal that lottery outlays exert a positive effect on charitable
contributions while the quantitative impact is significant. This study
thus provides evidence ameliorating the pessimistic prospect that people
may reduce their direct charitable contributions when they spend more on
lotteries. Possible explanations for the positive effect are also
discussed.
Journal: Applied Economics
Pages: 2241-2251
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707001
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2241-2251
Template-Type: ReDIF-Article 1.0
Author-Name: Raymond Swaray
Author-X-Name-First: Raymond
Author-X-Name-Last: Swaray
Title: How did the demise of international commodity agreements affect volatility of primary commodity prices?
Abstract:
This article has used the T-GARCH and E-GARCH models to answer the
following two questions regarding the pattern of volatility of commodity
prices following the demise of international commodity agreements
(hereafter ICAs) in five key commodities: firstly, the question of whether
the collapse or suspension of ICAs contributed to asymmetry in price
volatility and secondly, the question of whether the collapse or
suspension of ICAs led to an increase in persistence in price volatility.
The results show that breakdown of ICAs was generally followed by higher
degree asymmetry in price volatility but lower persistence in volatility.
Journal: Applied Economics
Pages: 2253-2260
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707043
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707043
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2253-2260
Template-Type: ReDIF-Article 1.0
Author-Name: Suthep Buranakunaporn
Author-X-Name-First: Suthep
Author-X-Name-Last: Buranakunaporn
Author-Name: Edward Oczkowski
Author-X-Name-First: Edward
Author-X-Name-Last: Oczkowski
Title: A dynamic econometric model of Thailand manufacturing energy demand
Abstract:
The purpose of this article is to employ the dynamic translog framework
to model inter-factor and inter-fuel energy demand for the Thai
manufacturing sector. The Denny et al. (1981) and Lynk (1989) framework,
which proposes a dynamic adjustment for capital stock is employed to
motivate the estimated of factor demand and fuel share equations. Three
factors: energy, labour and capital; and five fuel types: fuel oil, diesel
oil, liquified petroleum gas (LPG), electricity, and coal and lignite; are
examined. Regression diagnostics support the empirical specification.
Numerous factor and fuel substitution possibilities are identified, with
some policy implications described.
Journal: Applied Economics
Pages: 2261-2267
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707167
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707167
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2261-2267
Template-Type: ReDIF-Article 1.0
Author-Name: Katy Cornwell
Author-X-Name-First: Katy
Author-X-Name-Last: Cornwell
Author-Name: Brett Inder
Author-X-Name-First: Brett
Author-X-Name-Last: Inder
Title: Evidence for the ineffectiveness of debt rescheduling as a policy instrument
Abstract:
Where an economy cannot meet its external debt service obligations, it is
forced to appeal to creditors for rescheduling of the debt. As such,
rescheduling is evidence of a country's incapacity to carry a debt burden.
This article explores factors that explain the probability of a country
requiring debt rescheduling in a panel framework. The current literature
is extended by modelling a dynamic random effects panel probit, in order
to identify a presence of state dependence after controlling for country
heterogeneity. We find clear evidence of state dependence when a 2-year
lag of the dependent variable is allowed for, suggesting that overall, the
fact that a country has experienced a rescheduling arrangement in the past
does indeed make them more likely to experience further rescheduling. The
article stresses that in order to draw the appropriate policy conclusions
from this finding, one must understand that the debt rescheduling variable
is itself a policy response variable. The fact that further rescheduling
is often required within 2 years of a previous action suggests that
rescheduling as it took place in the 1980s and 1990s was an inadequate
response that often did little to help countries move beyond their current
debt crisis.
Journal: Applied Economics
Pages: 2269-2278
Issue: 17
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707175
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707175
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Handle: RePEc:taf:applec:v:39:y:2007:i:17:p:2269-2278
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Fertig
Author-X-Name-First: Michael
Author-X-Name-Last: Fertig
Title: The effectiveness of qualification measures for employed workers - an evaluation study for Saxony
Abstract:
This article investigates whether and to what extent employment policy
measures (co-) financed by the European Social Fund in Germany meet their
objective. Specifically, it is analysed whether qualification programs for
employed workers in the German state of Saxony were effective in terms of
employment protection. To this end, a control function approach is
implemented which utilizes a unique firm-level dataset. This model
explicitly accounts for unobserved heterogeneity between participating and
nonparticipating companies by modelling the participation decision
process. Our results suggest a positive effect of program participation.
However, this positive treatment effect varies considerably across
different sub-groups of the treatment as well as the comparison group.
Journal: Applied Economics
Pages: 2279-2301
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707233
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707233
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2279-2301
Template-Type: ReDIF-Article 1.0
Author-Name: Bharat Kolluri
Author-X-Name-First: Bharat
Author-X-Name-Last: Kolluri
Author-Name: Mahmoud Wahab
Author-X-Name-First: Mahmoud
Author-X-Name-Last: Wahab
Title: Asymmetries in the conditional relation of government expenditure and economic growth
Abstract:
Previous studies on the relationship between government expenditure and
economic growth have, invariably, aggregated periods of strong and weak
GDP growth and reported a single government expenditure response
coefficient estimate. We argue that traditional test specifications of
this relationship suffer from aggregation (or omitted variables) biases by
failing to distinguish between diverse economic growth experiences and
their impact on government expenditure. We reexamine the evidence
concerning Wagner's Law using a proposed conditional test specification
that is capable of: (a) separating periods of strong and weak economic
growth, (b) accommodating possible asymmetries in the marginal responses
of government expenditure to variations in economic growth and (c)
distinguishing between positive and negative asymmetries in such
responses. We present evidence showing that: (a) the majority of
government expenditure responses tend to occur during periods of an
economic slowdown characterized by GDP growth that is below trend-growth;
and (b) there is little evidence suggesting that government expenditure
increases markedly during periods of an economic expansion when GDP growth
is at/above trend-growth. Results from several tests of hypotheses also
corroborate these findings. When we aggregate response coefficients across
periods of above trend-growth and below trend-growth, we obtain an elastic
aggregate response coefficient for OECD countries in line with Wagner's
proposition. However, the evidence seems less forthcoming for EU
economies. Nonetheless, the estimated cumulative response coefficient from
our conditional asymmetric specification exceeds the estimated response
coefficient from a traditional symmetric test specification which appears
biased against finding support for Wagner's proposition due to omission of
important directional asymmetry variables from the estimating equation.
Journal: Applied Economics
Pages: 2303-2322
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707126
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707126
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2303-2322
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: Viswanadham Manchu
Author-X-Name-First: Viswanadham
Author-X-Name-Last: Manchu
Title: A comprehensive analysis of farmland value determination: a county-level analysis
Abstract:
This study develops a comprehensive model of farmland value determination
to analyze the effects of various economic variables such as net farm
income, government payments, macroeconomic factors, and demographic
conditions on farmland values for the counties along the Snake River
valley in Idaho. Land values, net farm income, and population show
considerable variation among the counties. Therefore, use of county level
cross-sectional and time-series data helps to assess the impacts of
various factors on land values more accurately. The empirical results show
that net farm income, wheat yield, population, and credit availability
have positive effects, and property tax rates, interest rates, and debt to
asset ratio have negative effects on farmland values.
Journal: Applied Economics
Pages: 2323-2330
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600675687
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675687
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2323-2330
Template-Type: ReDIF-Article 1.0
Author-Name: William Choi
Author-X-Name-First: William
Author-X-Name-Last: Choi
Author-Name: Lan Liang
Author-X-Name-First: Lan
Author-X-Name-Last: Liang
Title: Reverse moral hazard of liability insurers: evidence from medical malpractice claims
Abstract:
This study investigates putative differences in the legal defense of
medical malpractice claims between liability carriers with distinct
ownership forms: doctor-controlled and commercial-stock. The scope of a
carrier's legal defense is determined by claim characteristics, such as
injury severity and liability, and possibly the doctor's private costs
from settling or losing a claim. When a carrier does not internalize the
doctor's private costs from losing or settling a claim, then a conflict of
interest arises as the carrier provides a lower level of legal defense
than preferred by the doctor (i.e., reverse moral hazard). The perception
is that doctor-sponsored carriers mitigate such conflicts of interest. If
this is the case, we should expect to see differences in the amount spent
by the carrier in defense of the doctor and the propensity to settle
claims. To test these expectations, we use medical malpractice claims
filed in Florida between 1985 and 1990. We indeed find differences in
legal defense in terms of amount spent on legal defense and settlement
rate between carriers with different ownership. The doctor-sponsored
carrier we investigated was less likely to settle out-of-court, and did
spend more on a doctor's legal defense than stock carriers.
Journal: Applied Economics
Pages: 2331-2340
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500427080
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427080
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2331-2340
Template-Type: ReDIF-Article 1.0
Author-Name: Kazuo Ogawa
Author-X-Name-First: Kazuo
Author-X-Name-Last: Ogawa
Title: Why did Japan's household savings rate fall in the 1990s?
Abstract:
This study investigates empirically why Japan's household savings rate
fell in the 1990s. We constructed an economic model consisting of two
types of household: unconstrained life cycle households and
liquidity-constrained households. Unconstrained households generally save,
but liquidity-constrained households consume all of their disposable
income. We found that the proportion of liquidity-constrained households
increased sharply in the late 1990s, which led to a decline in Japan's
household savings rate. Our simulation analysis demonstrates that if the
proportion of liquidity-constrained households in the 1990s had stayed at
the level as that of the late 1980s, the household savings rate would have
increased by four% points in 2001 and 2002.
Journal: Applied Economics
Pages: 2341-2353
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600639899
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600639899
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2341-2353
Template-Type: ReDIF-Article 1.0
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Author-Name: Sascha Schmidt
Author-X-Name-First: Sascha
Author-X-Name-Last: Schmidt
Title: What shapes player performance in soccer? Empirical findings from a panel analysis
Abstract:
In this article, we investigate the pay-performance relationship of
soccer players using individual data from eight seasons of the German
soccer league Bundesliga. We find a nonlinear pay-performance
relationship, indicating that salary does indeed affect individual
performance. The results further show that player performance is affected
not only by absolute income level but also by relative income position. An
additional analysis of the performance impact of team effects provides
evidence of a direct impact of team-mate attributes on individual player
performance.
Journal: Applied Economics
Pages: 2355-2369
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600660739
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600660739
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2355-2369
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Zofio
Author-X-Name-First: Jose
Author-X-Name-Last: Zofio
Title: Malmquist productivity index decompositions: a unifying framework
Abstract:
In two widely cited but unpublished working papers, Simar and Wilson
(1998) and Zofio and Lovell (1998) proposed an alternative decomposition
of the Malmquist Productivity Index, which retained what seemed to be the
strongholds of previous proposals with regard to the contribution of
technological and efficiency change to productivity change. Namely, a
technical change term with regard to the best practice variable returns to
scale (VRS) technology, which is to be found in Ray and Desli (1997) and a
scale efficiency change term that illustrates a firm's situation with
regard to optimal scale (benchmark technology), Fare et al. (1994).
Attaining this objective required the introduction of an additional term
in the Malmquist Productivity Index decomposition, which would reflect the
scale bias of technical change. It is our objective to provide economic
rationale for this term within a theory of production context, the
existing decompositions and recent articles that further elaborate on this
issue. The ideas are illustrated using productivity trends in 17 OECD
countries.
Journal: Applied Economics
Pages: 2371-2387
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606260
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606260
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2371-2387
Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Author-Name: Chun-Chien Kuo
Author-X-Name-First: Chun-Chien
Author-X-Name-Last: Kuo
Title: Lower bounds of concentration in Taiwan's manufacturing industries: do exports matter?
Abstract:
This article aims to test Sutton's 'lower bounds' approach on the
analysis of market concentration in a small open economy like Taiwan.
Exporting, which is important to a small open economy, is also considered
in order to investigate the role of foreign competition on the market
structure. Using a stochastic frontier approach, the estimate findings are
in accordance with Sutton's predictions, whereby the lower bounds for high
advertising and/or R&D-intensive industries are higher than those for low
advertising and/or R&D-intensive industries in Taiwan. At the same time,
the lower bounds of concentrations for export-intensive industries do not
differ significantly from that of nonexport-intensive industries. The
deviations from the lower bound are explained by industry characteristics
such as the cost disadvantage ratio, the share of small and median-size
enterprises, turnover rate and growth rate.
Journal: Applied Economics
Pages: 2389-2401
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606237
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606237
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2389-2401
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chih Lee
Author-X-Name-First: Ming-Chih
Author-X-Name-Last: Lee
Author-Name: Jui-Cheng Hung
Author-X-Name-First: Jui-Cheng
Author-X-Name-Last: Hung
Title: Hedging for multi-period downside risk in the presence of jump dynamics and conditional heteroskedasticity
Abstract:
This study extends the one period zero-VaR (Value-at-Risk) hedge ratio
proposed by Hung et al. (2005) to the multi-period case and incorporates
the hedging horizon into the objective function under VaR framework. The
multi-period zero-VaR hedge ratio has several advantages. First, compared
to existing hedge ratios based on downside risk, it has an analytical
solution and is simple to calculate. Second, compared to the traditional
Minimum Variance (MV) hedge ratio, it considers expected return and
remains optimal while the Martingale process is invalid. Thirdly, hedgers
may elect an adequate hedging horizon and confidence level to reflect
their level of risk aversion using the concept of VaR. Pondering the
occurrence of volatility clustering and price jumps, this study utilizes
the ARJI model to compute time-varying hedge ratios. Finally, both
in-sample and out-of-sample hedging effectiveness between one-period hedge
ratio and multi-period hedge ratio are evaluated for four hedging horizons
and various levels of risk aversion. The empirical results indicate that
hedgers wishing to hedge downside risk over long horizons should use the
multi-period zero-VaR hedge ratios.
Journal: Applied Economics
Pages: 2403-2412
Issue: 18
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707118
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707118
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Handle: RePEc:taf:applec:v:39:y:2007:i:18:p:2403-2412
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Cristina D'Addio
Author-X-Name-First: Anna Cristina
Author-X-Name-Last: D'Addio
Author-Name: Tor Eriksson
Author-X-Name-First: Tor
Author-X-Name-Last: Eriksson
Author-Name: Paul Frijters
Author-X-Name-First: Paul
Author-X-Name-Last: Frijters
Title: An analysis of the determinants of job satisfaction when individuals' baseline satisfaction levels may differ
Abstract:
A growing literature seeks to explain differences in individuals'
self-reported satisfaction with their jobs. The evidence so far has mainly
been based on cross-sectional data and when panel data have been used,
individual unobserved heterogeneity has been modelled as an ordered probit
model with random effects. This article makes use of longitudinal data for
Denmark, taken from the waves 1995-1999 of the European Community
Household Panel, and estimates fixed effects ordered logit models using
the estimation methods proposed by Ferrer-i-Carbonel and Frijters (2004)
and Das and van Soest (1999). For comparison and testing purposes a random
effects ordered probit is also estimated. Estimations are carried out
separately on the samples of men and women for individuals' overall
satisfaction with the jobs they hold. We find that using the fixed effects
approach (that clearly rejects the random effects specification),
considerably reduces the number of key explanatory variables. The impact
of central economic factors is the same as in previous studies, though.
Moreover, the determinants of job satisfaction differ considerably between
the genders, in particular once individual fixed effects are allowed for.
Journal: Applied Economics
Pages: 2413-2423
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707357
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707357
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2413-2423
Template-Type: ReDIF-Article 1.0
Author-Name: Robin Johnson
Author-X-Name-First: Robin
Author-X-Name-Last: Johnson
Author-Name: W. A. Razzak
Author-X-Name-First: W. A.
Author-X-Name-Last: Razzak
Author-Name: Steven Stillman
Author-X-Name-First: Steven
Author-X-Name-Last: Stillman
Title: Has New Zealand benefited from its investments in research & development?
Abstract:
We use panel data for nine industries to evaluate research and
development (R&D) investments in New Zealand over the past forty years. We
estimate the impact of R&D stocks in a particular industry on output per
person in that industry and on output per person in the rest of the
economy. We examine both public and private R&D investments. Privately
provided R&D has a statistically significant positive impact on
own-industry output per person, suggesting it increases productivity.
However, publicly provided R&D has no impact on own-industry output per
person. There is also evidence that private R&D in certain industries
positively affects output per person in the rest of the economy, i.e. it
generates positive spillovers. There is no evidence of positive spillovers
from publicly provided R&D.
Journal: Applied Economics
Pages: 2425-2440
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707308
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707308
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2425-2440
Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Mohammadi
Author-X-Name-First: Hassan
Author-X-Name-Last: Mohammadi
Author-Name: Murat Cak
Author-X-Name-First: Murat
Author-X-Name-Last: Cak
Author-Name: Demet Cak
Author-X-Name-First: Demet
Author-X-Name-Last: Cak
Title: Capital mobility and foreign debt sustainabilty: some evidence from Turkey
Abstract:
This paper address the extent of capital mobility and foreign debt
sustainability in Turkey over the 1962-2003 period by examining the
relationship between saving and investment, and imports and exports,
respectively. The empirical investment is based on cointegration, error
correction models, and threshold and momentum threshold autoregressive
models. Our findings are consistent with the existence of capital mobility
and the 'Strong' form of foreign debt sustainability.
Journal: Applied Economics
Pages: 2441-2449
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707274
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707274
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2441-2449
Template-Type: ReDIF-Article 1.0
Author-Name: Tahir Abdi
Author-X-Name-First: Tahir
Author-X-Name-Last: Abdi
Title: Trade liberalization, technology, relative factor supplies and the relative wage: evidence from the South
Abstract:
There is much controversy about the role that trade liberalization,
technological change and relative factor supplies have played in bringing
about changes in the relative wage of the unskilled workers. Much of the
empirical work on this issue has focused on the industrial countries and
paid little attention to developing countries. To fill this gap, this
study develops a special data set to examine the relative wage behaviour
of a large number of developing countries. An empirical model based on the
theory is used to test different explanations of the relative wage change.
As predicted by the technology explanation, the empirical analysis in the
study finds a significant negative link between the relative wage of
unskilled workers and the technology index. The analysis, however, does
not find a significant role for labour supplies or trade liberalization in
determining the relative wage of unskilled-skilled workers.
Journal: Applied Economics
Pages: 2451-2463
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600567660
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600567660
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2451-2463
Template-Type: ReDIF-Article 1.0
Author-Name: Cees van Beers
Author-X-Name-First: Cees
Author-X-Name-Last: van Beers
Author-Name: Jeroen C. J. M. van den Bergh
Author-X-Name-First: Jeroen C. J. M. van den
Author-X-Name-Last: Bergh
Author-Name: Andre de Moor
Author-X-Name-First: Andre de
Author-X-Name-Last: Moor
Author-Name: Frans Oosterhuis
Author-X-Name-First: Frans
Author-X-Name-Last: Oosterhuis
Title: Determining the environmental effects of indirect subsidies: integrated method and application to the Netherlands
Abstract:
The term 'environmentally damaging subsidies' covers all sorts of direct
and indirect subsidies with negative consequences for the environment.
This article presents a method to determine the environmental impact of
these subsidies. It combines a microeconomic framework with an
environmental impact module. The method is particularly useful for
analysing indirect subsidies. These are often hidden, and therefore, not
recognized as subsidies. Use of the method will provide a basis for
formulating corrective policy. The method is applied to several important
subsidies in the Netherlands, in agriculture, energy and transport
sectors. The results reveal large environmental effects, which deserve
serious attention from policy makers. To illustrate the specific features
of the method, its application to a particular subsidy, namely the
exemption of excise taxes on aviation fuels, is presented in full detail.
Journal: Applied Economics
Pages: 2465-2482
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600592833
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592833
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2465-2482
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Title: Are real exchange rates nonlinear with a unit root? Evidence on PPP for Italy: a note
Abstract:
In this article, we apply the recently developed threshold autoregression
model to examine both linearity and stationarity of Italy's real exchange
rate vis-a-vis her six trading partner (G6) countries. Our main finding is
that Italy's real exchange rate is a nonlinear process that is not
characterized by a unit root process for five of six trading partner
countries. This provides strong support for purchasing power parity.
Journal: Applied Economics
Pages: 2483-2488
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600606369
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606369
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2483-2488
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani Oskooee
Author-X-Name-First: Mohsen Bahmani
Author-X-Name-Last: Oskooee
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Title: Real and nominal effective exchange rates in MENA countries: 1970-2004
Abstract:
The main purposes of this article are 3-fold. First, we construct
measures of real and nominal effective exchange rates for 14 Middle East
and North African countries over the 1970-2004 period. Second, we test the
validity of the Purchasing Power Parity (PPP) by applying the ADF and KPSS
tests to the real effective exchange rates. Finally, we employ the bounds
testing approach to cointegration and error-correction modelling to show
that nominal devaluation leads to real devaluation in the short-run as
well as in the long-run in many of the countries.
Journal: Applied Economics
Pages: 2489-2501
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690306
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690306
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2489-2501
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Author-Name: S. Iannotti
Author-X-Name-First: S.
Author-X-Name-Last: Iannotti
Title: Are there asymmetries in the response of bank interest rates to monetary shocks?
Abstract:
This article examines the velocity and asymmetry of the response of bank
interest rates to monetary policy shocks. Using an asymmetric vector error
correction model, it analyses the pass-through of changes in money market
rates to retail bank interest rates in Italy in the period 1985-2002. The
main results of the article are: (1) the speed of adjustment of bank
interest rates to monetary policy changes increased significantly after
the introduction of the 1993 Consolidated Law on Banking; (2) interest
rate adjustment in response to positive and negative shocks is asymmetric
in the short run, but not in the long run; (3) banks adjust their loan
(deposit) rate faster during periods of monetary tightening (easing); (4)
this asymmetry almost vanished since the 1990s.
Journal: Applied Economics
Pages: 2503-2517
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707241
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707241
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2503-2517
Template-Type: ReDIF-Article 1.0
Author-Name: Athena Belegri-Roboli
Author-X-Name-First: Athena
Author-X-Name-Last: Belegri-Roboli
Author-Name: Panayotis Michaelides
Author-X-Name-First: Panayotis
Author-X-Name-Last: Michaelides
Title: Estimating labour and output gap: evidence from the Athens Olympic Region in Greece
Abstract:
The present article estimates potential labour and labour gap as well as
potential output and output gap using a Cobb-Douglas production function
and a Hodrick-Prescott filter. We investigate the Athens Region in Greece
by sector of economic activity, with the aid of the non-accelerating wage
inflation rate of unemployment concept. The results support the idea that
the Athens region seems to be working, mostly, over the regional economy's
capabilities, a fact which leads to inflationary pressure.
Journal: Applied Economics
Pages: 2519-2528
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707290
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707290
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2519-2528
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Bonilla
Author-X-Name-First: Claudio
Author-X-Name-Last: Bonilla
Author-Name: Rafael Romero-Meza
Author-X-Name-First: Rafael
Author-X-Name-Last: Romero-Meza
Author-Name: Melvin Hinich
Author-X-Name-First: Melvin
Author-X-Name-Last: Hinich
Title: GARCH inadequacy for modelling exchange rates: empirical evidence from Latin America
Abstract:
This article checks for the adequacy of using GARCH models in exchange
rate series. Using the Hinich portmanteau bicorrelation test, we find that
a GARCH formulation or any of its variants fails to capture the data
generating process of the main Latin American exchange rates. Our results
highlight the potential of having misleading public policy when estimates
are based in GARCH types of models. This article also complements recent
similar findings encountered in European and Asian economies.
Journal: Applied Economics
Pages: 2529-2533
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707316
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707316
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2529-2533
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Asche
Author-X-Name-First: Frank
Author-X-Name-Last: Asche
Author-Name: Shabbar Jaffry
Author-X-Name-First: Shabbar
Author-X-Name-Last: Jaffry
Author-Name: Jessica Hartmann
Author-X-Name-First: Jessica
Author-X-Name-Last: Hartmann
Title: Price transmission and market integration: vertical and horizontal price linkages for salmon
Abstract:
Relationships between prices are of interest when testing for market
integration as well as analyses of supply chains. A feature that has
received little attention is that if two supply chains are linked by
market integration at some stage, then the whole supply chain will be
linked. Furthermore, the leading price in such a system can be in one
supply chain and will not be revealed in market integration studies or
analysis of a single supply chain. An empirical analysis is provided for
the supply chains for salmon which originates in Norway and the United
Kingdom and is then sold at retail level in France as smoked salmon. We
find a high degree of price transmission in both supply chains, as well as
integrated markets.
Journal: Applied Economics
Pages: 2535-2545
Issue: 19
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840500486524
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500486524
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2535-2545
Template-Type: ReDIF-Article 1.0
Author-Name: David Byers
Author-X-Name-First: David
Author-X-Name-Last: Byers
Author-Name: James Davidson
Author-X-Name-First: James
Author-X-Name-Last: Davidson
Author-Name: David Peel
Author-X-Name-First: David
Author-X-Name-Last: Peel
Title: The long memory model of political support: some further results
Abstract:
This article extends the results of Byers et al. (1997) on long memory in
support for the Conservative and Labour Parties in the UK using longer
samples and additional poll series. It finds continuing support for the
ARFIMA(0, d, 0) model, though with somewhat smaller values of the long
memory parameter. We find that the move to telephone polling in the
mid-1990s had no apparent effect on the estimated value of d for either
party. Finally, we find that we cannot reject the hypotheses that the
parties share a common long memory parameter which we estimate at around
0.65.
Journal: Applied Economics
Pages: 2547-2552
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707340
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707340
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2547-2552
Template-Type: ReDIF-Article 1.0
Author-Name: Glauco De Vita
Author-X-Name-First: Glauco De
Author-X-Name-Last: Vita
Author-Name: Andrew Abbott
Author-X-Name-First: Andrew
Author-X-Name-Last: Abbott
Title: Do exchange rates have any impact upon UK inward foreign direct investment?
Abstract:
This article examines the impact of the level and volatility of the real
exchange rate on UK foreign direct investment (FDI) inflows from the seven
major countries of origin of the investment over the period 1975-2001. We
use both fixed effects and dynamic generalized methods of moments (GMM)
panel estimation techniques, and manufacturing data disaggregated by high
and low R&D content of the sector of destination. Our results provide
strong evidence that exchange rate volatility has a negative impact on FDI
flows into the UK, irrespective of the sector of destination of the
investment. On the other hand, the level of the real exchange rate is
found to have a statistically insignificant effect on FDI after
controlling for endogeneity of the regressors.
Journal: Applied Economics
Pages: 2553-2564
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749748
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749748
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2553-2564
Template-Type: ReDIF-Article 1.0
Author-Name: Miquel Clar
Author-X-Name-First: Miquel
Author-X-Name-Last: Clar
Author-Name: Juan-Carlos Duque
Author-X-Name-First: Juan-Carlos
Author-X-Name-Last: Duque
Author-Name: Rosina Moreno
Author-X-Name-First: Rosina
Author-X-Name-Last: Moreno
Title: Forecasting business and consumer surveys indicators-a time-series models competition
Abstract:
The objective of this article is to compare different time-series methods
for the short-run forecasting of Business and Consumer Survey Indicators.
We consider all available data taken from the Business and Consumer Survey
Indicators for the Euro area between 1985 and 2002. The main results of
the forecast competition are offered not only for raw data but we also
consider the effects of seasonality and removing outliers on forecast
accuracy. In most cases, the univariate autoregressions were not
outperformed by the other methods. As for the effect of seasonal
adjustment methods and the use of data from which outliers have been
removed, we obtain that the use of raw data has little effect on forecast
accuracy. The forecasting performance of qualitative indicators is
important since enlarging the observed time series of these indicators
with forecast intervals may help in interpreting and assessing the
implications of the current situation and can be used as an input in
quantitative forecast models.
Journal: Applied Economics
Pages: 2565-2580
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600690272
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690272
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2565-2580
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Brown
Author-X-Name-First: Keith
Author-X-Name-Last: Brown
Title: How many viewers does a cable network need? A survival analysis of cable networks
Abstract:
This article employs survival/duration analysis to determine how
subscriber levels affect cable networks' survival probabilities. Using
piecewise-constant hazards estimation, we find that an additional one
million subscribers increases a cable network's probability of survival in
a given year by 17%.
Journal: Applied Economics
Pages: 2581-2587
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707191
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707191
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2581-2587
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Title: Is devaluation expansionary or contractionary? Empirical evidence from Fiji
Abstract:
Devaluation has been traditionally promoted as an effective tool for
increasing exports and improving the external position of the devaluing
country if a nominal devaluation results in expenditure switching. In this
article, our aim is to model the relationship between currency
devaluations and output for Fiji. Following the approach in Bahmani et al.
(2002), we extend the traditional model by incorporating other monetary
and fiscal policy variables. We achieve our goal by using the recently
developed bounds testing approach to cointegration and the autoregressive
distributed lag model and find that devaluation is expansionary in the
case of Fiji.
Journal: Applied Economics
Pages: 2589-2598
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707266
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707266
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2589-2598
Template-Type: ReDIF-Article 1.0
Author-Name: Helder de Mendonca
Author-X-Name-First: Helder
Author-X-Name-Last: de Mendonca
Title: Towards credibility from inflation targeting: the Brazilian experience
Abstract:
This article analyses the use of the basic interest rate after the
adoption of inflation targeting in Brazil and the credibility of this
monetary regime through two indices that consider the Cukierman and
Meltzer (1986) definition for credibility. It also shows the main
theoretical and practical motives for changes in the conduction of the
monetary policy in the 1970s; the way that inflation targeting strategy is
inserted in rules vs. discretion analysis; and the main points that
characterize the literature concerning inflation targeting. The findings
denote that the strategy implemented in Brazil is not a good mechanism to
develop credibility.
Journal: Applied Economics
Pages: 2599-2615
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600707324
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707324
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2599-2615
Template-Type: ReDIF-Article 1.0
Author-Name: James Odeck
Author-X-Name-First: James
Author-X-Name-Last: Odeck
Title: Measuring technical efficiency and productivity growth: a comparison of SFA and DEA on Norwegian grain production data
Abstract:
This article compares data envelopment analysis and stochastic frontier
analysis to assess efficiency and productivity growth of Norwegian grain
producers. Previous studies have dealt with either one of them and less of
both. For the assessment of productivity growth or regress, Malmquist
productivity indices are derived from both approaches. The data cover a
10-year period. We find consistency between the approaches to the extent
that: (1) there are potentials for efficiency improvements, but the
magnitudes depends on the model applied and by segmentation of the data
set, (2) there has been a productivity improvement in the sector, on
average in the interval 30-38% in the period studied and (3) technical
change has had the greatest impact on productivity, indicating that
producers have a tendency to catch-up with the front runners. In general,
policy-makers are warned not to be indifferent with respect to the
approach used for efficiency and productivity measurement as these may
give different results.
Journal: Applied Economics
Pages: 2617-2630
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722224
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722224
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2617-2630
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Bastos
Author-X-Name-First: Rafael
Author-X-Name-Last: Bastos
Author-Name: Julio Pindado
Author-X-Name-First: Julio
Author-X-Name-Last: Pindado
Title: An agency model to explain trade credit policy and empirical evidence
Abstract:
This article explains trade credit policy based on the agency theory.
According to this theory, we have developed an agency model based on the
adverse selection and moral hazard phenomena arising from the relation
between sellers and buyers. This model has been estimated by using panel
data methodology applied to UK companies. Our findings strongly support
the model proposed. We find that smaller firms, those with a smaller
proportion of fixed assets, and those that are less profitable extend more
trade credit, whereas firms with a high proportion of variable costs and
high percentage of bad debts extend less.
Journal: Applied Economics
Pages: 2631-2642
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722232
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722232
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2631-2642
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Pascoe
Author-X-Name-First: Sean
Author-X-Name-Last: Pascoe
Title: Estimation of cost functions in a data poor environment: the case of capacity estimation in fisheries
Abstract:
Fisheries economic analysis is often handicapped by the lack of adequate
data to undertake robust econometric analyses. In this study, a translog
cost function was required to estimate the potential direction of
adjustment in a UK fleet segment if a new regulatory regime was
introduced. However, the available data were not appropriate for such
estimation. Data envelopment analysis (DEA) was used to modify the data
subsequently used in the estimation of the long-run cost function. The
resulting model appears robust and is consistent with economic theory and
the supporting evidence produced using DEA.
Journal: Applied Economics
Pages: 2643-2654
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722257
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722257
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2643-2654
Template-Type: ReDIF-Article 1.0
Author-Name: Ji-Chung Yang
Author-X-Name-First: Ji-Chung
Author-X-Name-Last: Yang
Title: Variations of optimum firm and company town location
Abstract:
In the literatures of location and firm behaviour, most of the papers
deal with location and theory of firms in conjunction with a heterogeneous
space where markets are given at discrete points. Also, most of writers of
the papers considered the optimum location problem only for an unregulated
firm and industry. On the other hand, there are many regulated firms and
industries in real economies. Also, we can consider a location problem of
an industrial city (industry complex) which means a big company town. Many
comparisons after combining some effects such as agglomeration (scale
economies/diseconomies), etc. were implemented. We analysed the optimum
location of industrial city (big company town) and input usage under
regulatory constraint and agglomeration. We introduced an active
constraint of a fair rate of return from the pioneering work of Averch and
Johnson to the location problem of the big firm with multi inputs. With
multi-inputs, simple one dimension locational problems are solved.
Journal: Applied Economics
Pages: 2655-2661
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722265
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722265
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2655-2661
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu
Author-X-Name-First: Chun-Chu
Author-X-Name-Last: Liu
Title: A DEA study to evaluate the relative efficiency and investigate the reorganization of the credit department of farmers' associations in Taiwan
Abstract:
In this study data envelopment analysis models were applied to evaluate
the relative efficiencies of the credit departments of farmers'
associations (CDFAs) in Taiwan. The findings show that the overall
efficiency scores are not best and scale for CDFAs in Taiwan is relative
small. It implies that the reorganization of the CDFAs may be appropriate
if more efficient organization is to be pursued. Thus, this study
investigated CDFAs reorganization to increase the efficiency. The proposed
CDFAs reorganization alternatives have higher average efficiency scores
than the current CDFAs.
Journal: Applied Economics
Pages: 2663-2671
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722273
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722273
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2663-2671
Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Lieh Huang
Author-X-Name-First: Yu-Lieh
Author-X-Name-Last: Huang
Author-Name: Chao-Hsi Huang
Author-X-Name-First: Chao-Hsi
Author-X-Name-Last: Huang
Title: The persistence of Taiwan's output fluctuations: an empirical study using innovation regime-switching model
Abstract:
In this article we examine the persistence nature of Taiwan's aggregate
output fluctuations by using the 'innovation regime-switching' (IRS) model
in which the effect of an innovation may be permanent or transitory,
depending on an unobservable state variable that follows a first order
Markov chain. By applying the IRS model to Taiwan's real GDP data, we find
that during the 1961 to 2000 period 61% (39%) of the real output shocks
are likely to have permanent (transitory) effects. Moreover, the
innovations in the officially identified expansion (contraction) are more
likely to have a permanent (transitory) effect. These results are similar
to those found in many studies of US real output fluctuations, e.g.
Beaudry and Koop (1993), Kim and Nelson (1999) and Kuan et al. (2005).
However, we also find that Taiwan's output dynamics have changed
drastically ever since year 2000. In particular, the shocks to real GDP
have become more likely to have only transitory effect, even during the
period of post-2001:IV expansion.
Journal: Applied Economics
Pages: 2673-2679
Issue: 20
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600735382
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735382
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Handle: RePEc:taf:applec:v:39:y:2007:i:20:p:2673-2679
Template-Type: ReDIF-Article 1.0
Author-Name: Ranjula Bali Swain
Author-X-Name-First: Ranjula Bali
Author-X-Name-Last: Swain
Title: The demand and supply of credit for households
Abstract:
The demand and supply of credit in the rural credit markets is
investigated in this article using household data from India. The aim is
to study the effects of household, farm productive characteristics and the
policy variables on the demand and supply of credit. A type 3 Tobit model
is estimated which corrects for sample selection and endogeniety bias. In
addition, a generalized Double Hurdle model is estimated where the
information on the household's access to credit is included to estimate
the demand and supply of credit. The results suggest that the size of the
operational holdings, net-wealth, dependency ratio, educational level of
the household and the wages and output prices are important determinants
of the demand and supply of credit for farm households. The Double Hurdle
model confirms that the 'size of land owned' plays a crucial role in
whether the household has access to a loan or not.
Journal: Applied Economics
Pages: 2681-2692
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749516
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749516
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2681-2692
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Thompson
Author-X-Name-First: Mark
Author-X-Name-Last: Thompson
Title: Are adjustments in the default risk premium asymmetric?
Abstract:
This article employs threshold cointegration and error-correction models
to the default risk premium. The approach allows asymmetry in the dynamic
process that has not been captured in previous studies of corporate credit
spreads. The results indicate that the adjustment process is asymmetric
and would be beneficial to investors and macroeconomic forecasters as the
default risk premium may signal future business cycles.
Journal: Applied Economics
Pages: 2693-2698
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749797
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2693-2698
Template-Type: ReDIF-Article 1.0
Author-Name: David Griffiths
Author-X-Name-First: David
Author-X-Name-Last: Griffiths
Title: Forecasting income shares: are mean-reversion assumptions appropriate?
Abstract:
The article examines some statistical evidence that supports the view
that US labour and capital shares of income return to some long-run
historical values. We estimate the long-run share values and the length of
time it takes to converge to them. We account for the interdependence of
the shares by using a vector error-correction model, and this
specification is tested against a VAR alternative using Johansen's method
to characterize the properties of the cointegrating vector. We find
support for the idea that labour and capital shares have historically been
mean reverting, in spite of the fairly restrictive assumptions implied
when invoking the Cobb-Douglas production function as the rationale. The
cumulative impulse response functions indicate that for capital and labour
shares, the time required to revert back to long run levels is in the
order of thirty quarters.
Journal: Applied Economics
Pages: 2699-2711
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722299
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722299
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2699-2711
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Rodriguez
Author-X-Name-First: Gabriel
Author-X-Name-Last: Rodriguez
Author-Name: Indira Romero
Author-X-Name-First: Indira
Author-X-Name-Last: Romero
Title: The role of permanent and transitory components in the fluctuations of Latin-American real exchange rates
Abstract:
Following the approach suggested by Engel and Kim (1999), we estimate the
permanent and transitory components of the real exchange rates in four
Latin-American countries for the period 1957:01 to 2002:04. Results
suggest that transitory component is the driving force of the real
exchange rates in Argentina and Mexico. A principal role of the permanent
component is observed in the real exchange rates of Brazil and Chile.
Estimates probabilities of the high-variance regime allow to identify the
principal events happened in these countries. This information is closely
related to nominal shocks and therefore, it explains the significant role
of this component in these countries.
Journal: Applied Economics
Pages: 2713-2722
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600722349
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722349
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2713-2722
Template-Type: ReDIF-Article 1.0
Author-Name: A. Dupuy
Author-X-Name-First: A.
Author-X-Name-Last: Dupuy
Title: Will the skill-premium in the Netherlands rise in the next decades?
Abstract:
While the skill-premium has been rising sharply in the US and the UK for
20 years, the Dutch skill-premium decreased for much of that period and
only started to rise in the early 90s. In this article, we investigate
whether the Dutch skill-premium will rise in the next decades. To answer
this question, we forecast the skill-premium using the Katz and Murphy
(1992) and the Krusell et al. (2000) models. The Katz and Murphy model
(KM) explains demand shifts by skill-biased technological change in
unobservable variables captured by a time trend. In contrast, the Krusell
et al. model (KORV) explains demand shifts by (observable) changes in the
capital stock under a capital-skill complementarity technology. The
results show that while the KM model predicts that the skill-premium will
have increased by 30% in 2020, based on realistic predictions of the stock
of capital, the KORV model predicts that the skill-premium will remain
between -5 and +5% of its 1996 level.
Journal: Applied Economics
Pages: 2723-2731
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749441
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749441
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2723-2731
Template-Type: ReDIF-Article 1.0
Author-Name: Kyongwook Choi
Author-X-Name-First: Kyongwook
Author-X-Name-Last: Choi
Author-Name: Brandon Dupont
Author-X-Name-First: Brandon
Author-X-Name-Last: Dupont
Title: Revisiting structural change and market integration in late 19th century American capital markets
Abstract:
This article draws on a variety of time series tools to more deeply
explore issues surrounding the emergence of a national capital market in
the late 19th century. Our focus is on the timing of the emergence of a
national capital market. Rather than relying on the absolute narrowing of
regional interest rate differentials, which is a common approach in this
literature, we use Gregory and Hansen cointegration tests, which allow us
not only to test for cointegrating relations in the interest rate series
but to identify unknown structural change dates as a byproduct. We also
use dynamic conditional correlations to determine the dates at which
regional interest rate correlations began increasing. Our results suggest
that structural changes are centred around the year 1900, which is
consistent with Sylla's argument that the lowering of capital requirements
by the Gold Standard Act of 1900 increased bank entry and competition and
facilitated regional capital market convergence.
Journal: Applied Economics
Pages: 2733-2741
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749508
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749508
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2733-2741
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Mehay
Author-X-Name-First: Stephen
Author-X-Name-Last: Mehay
Author-Name: Natalie Webb
Author-X-Name-First: Natalie
Author-X-Name-Last: Webb
Title: Workplace drug prevention programs: does zero tolerance work?
Abstract:
Current drug policy in the US military mandates frequent random drug
testing of service members and dismissal of those who test positive for
illegal drugs. This article analyses the economic costs and benefits of
this zero tolerance policy as applied in the US Navy. Program effects
consist of the actual number of detected users and the predicted number of
deterred potential users. Productivity losses imposed by drug users are
based on reported annual workdays lost due to drug use in the Navy. The
productivity losses avoided by deterring and detecting users constitute
program benefits. Program costs include the cost of replacing service
members who are dismissed under the zero tolerance policy. Net benefits
are sensitive to three key parameters - the deterrence effect, replacement
cost, and productivity losses due to drug use. The results show that net
benefits are negative for most plausible values of the key parameters.
Journal: Applied Economics
Pages: 2743-2751
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749532
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749532
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2743-2751
Template-Type: ReDIF-Article 1.0
Author-Name: George Halkos
Author-X-Name-First: George
Author-X-Name-Last: Halkos
Author-Name: Ilias Kevork
Author-X-Name-First: Ilias
Author-X-Name-Last: Kevork
Title: Testing for a unit root under the alternative hypothesis of ARIMA (0, 2, 1)
Abstract:
Showing a dual relationship between ARIMA (0, 2, 1) with parameter
θ = -1 and the random walk, a new alternative hypothesis in the form
of ARIMA (0, 2, 1) is established in this article for evaluating unit root
tests. The power of four methods of testing for a unit root is
investigated under the new alternative, using Monte Carlo simulations. The
first method testing θ = -1 in second differences and using a new
set of critical values suggested by the two authors in finite samples, is
the most appropriate from the integration order point of view. The other
three methods refer to tests based on t and φ statistics introduced
by Dickey and Fuller, as well as, the nonparametric Phillips-Perron test.
Additionally, for cases where for the first method a low power is met, we
studied the validity of prediction interval for a future value of ARIMA
(0, 2, 1) with θ close but greater of -1, using the prediction
equation and the error variance of the random walk. Keeping the
forecasting horizon short, the coverage of the interval ranged at expected
levels, but its average half-length ranged up to four times more than its
true value.
Journal: Applied Economics
Pages: 2753-2767
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600735416
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735416
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2753-2767
Template-Type: ReDIF-Article 1.0
Author-Name: Jaeun Shin
Author-X-Name-First: Jaeun
Author-X-Name-Last: Shin
Author-Name: S. Moon
Author-X-Name-First: S.
Author-X-Name-Last: Moon
Title: HMO plans, self-selection and utilization of health care services
Abstract:
This study examines the effect of health maintenance organizations (HMOs)
on the use of health care services among the privately insured, nonelderly
population. To consider jointly the possible self-selection bias and high
frequency of zero observations in the applied utilization measures, we
accommodate the endogeneity of health plan choice decisions in the
censored regression model. Using data from the 2000 Medical Expenditure
Panel Survey, we find strong evidence for favourable self-selection into
HMO plans. Health maintenance organization enrollment is found to
encourage greater use of office-based and hospital outpatient services.
Overall satisfaction with the quality of care among HMO members is
relatively low compared to that among nonHMO members. These findings
suggest that more effort is needed to develop management strategies in
HMOs in order to contain the moral hazard in utilization and assure the
quality of service provided within the network of HMO providers.
Journal: Applied Economics
Pages: 2769-2784
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749391
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749391
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2769-2784
Template-Type: ReDIF-Article 1.0
Author-Name: Yahui Peng
Author-X-Name-First: Yahui
Author-X-Name-Last: Peng
Author-Name: Kehluh Wang
Author-X-Name-First: Kehluh
Author-X-Name-Last: Wang
Title: IPO underpricing and flotation methods in Taiwan - a stochastic frontier approach
Abstract:
Adopting stochastic frontier analysis, this article studies the pricing
model and underpricing phenomenon of the initial public offerings (IPOs)
in Taiwan and further elucidates the potential impact of offering
mechanisms on underpricing. The sampling period is from 1996 to 2003, in
which 647 IPOs are selected. Empirical results suggest that issuing firms
with greater earning potentials, less risk or less asymmetric information
have lower underpricing. Furthermore, the variables included to explain
underpricing are mostly significant, especially the proxy variable for
flotation method. Observed mean IPO underpricing is 20.59% in the sample
period, compared to 17.12% for the subgroup using the auction method. This
statistically significant difference implies that the introduction of the
auction method can help reduce IPO underpricing.
Journal: Applied Economics
Pages: 2785-2796
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749417
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749417
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2785-2796
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu
Author-X-Name-First: Chun-Chu
Author-X-Name-Last: Liu
Author-Name: Hsiu-Chuan Lin
Author-X-Name-First: Hsiu-Chuan
Author-X-Name-Last: Lin
Title: Applying data envelopment analysis in analysing the organizational change for credit departments of farmers' associations in Taiwan
Abstract:
This study attempts to apply the data envelopment analysis to approach
the performance of the credit departments of farmers' associations in
Taiwan. Based on the structure of the data envelopment analysis approach,
this study measures the relative efficiency for credit departments of
farmers' associations in Taiwan via resource redistribution. When the
amount of resource is fixed, it can be distributed to each unit within an
organization in a better way. It is intended to find the possible
improvements for those inefficient credit departments of farmers'
associations. The empirical results show that the overall efficiency
scores of the teams indicate is not best and scale for credit departments
of farmers' associations in Taiwan is relatively small. It implies that
the reorganization of the credit departments of farmers' associations may
be appropriate if more efficient organization is to be pursued. Finally
the reorganization of the credit departments of farmers' associations are
studies, evidences show the results are really be improved and acceptable.
Journal: Applied Economics
Pages: 2797-2805
Issue: 21
Volume: 39
Year: 2007
X-DOI: 10.1080/00036840600749425
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749425
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Handle: RePEc:taf:applec:v:39:y:2007:i:21:p:2797-2805
Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Title: Introduction: economics of betting markets
Abstract:
Journal: Applied Economics
Pages: 1-3
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701728773
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701728773
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:1-3
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Cain
Author-X-Name-First: Michael
Author-X-Name-Last: Cain
Author-Name: David Law
Author-X-Name-First: David
Author-X-Name-Last: Law
Author-Name: David Peel
Author-X-Name-First: David
Author-X-Name-Last: Peel
Title: Bounded cumulative prospect theory: some implications for gambling outcomes
Abstract:
Standard parametric specifications of Cumulative Prospect theory (CPT)
can explain why agents bet on longshots at actuarially unfair odds.
However, the standard specification of CPT cannot explain why people might
bet on more favoured outcomes, where by construction the greatest volume
of money is bet. This article outlines a parametric specification than can
consistently explain gambling over all outcomes. In particular we assume
that the value function is bounded from above and below and that the
degree of loss aversion experienced by the agent is smaller for
small-stake gambles (as a proportion of wealth) than usually assumed in
CPT. There are a number of new implications of this specification.
Boundedness of the value function in CPT implies that the indifference
curve between expected-return and win-probability for a given stake will
typically exhibit both an asymptote (implying rejection of an infinite
gain bet) and a minimum, as the shape of the value function dominates the
probability weighting function. Also the high probability section of the
indifference curve will exhibit a maximum.
Journal: Applied Economics
Pages: 5-15
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701728765
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701728765
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:5-15
Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Author-Name: D. Law
Author-X-Name-First: D.
Author-X-Name-Last: Law
Title: The Markowitz model of utility supplemented with a small degree of probability distortion as an explanation of outcomes of Allais experiments over large and small payoffs and gambling on unlikely outcomes
Abstract:
We show that in principal only a small degree of probability distortion
is necessary for agents to exhibit the Allais paradox. We also show that
the choices observed in the Allais experiments employing small real
payoffs cannot be explained by Cumulative Prospect Theory without the
assumption of low degrees of probability distortion that rule out gambling
at unfair odds on all but the most extreme longshots in CPT. Given these
points we show that the Markowitz model of utility supplemented by a small
degree of probability distortion can explain the majority choices involved
Allais experiments and other experiments as well as gambling at
actuarially unfair odds.
Journal: Applied Economics
Pages: 17-26
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701728781
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701728781
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:17-26
Template-Type: ReDIF-Article 1.0
Author-Name: N. Bhattacharya
Author-X-Name-First: N.
Author-X-Name-Last: Bhattacharya
Author-Name: T. A. Garrett
Author-X-Name-First: T. A.
Author-X-Name-Last: Garrett
Title: Why people choose negative expected return assets - an empirical examination of a utility theoretic explanation
Abstract:
Using a theoretical extension of the Friedman and Savage (1948) utility
function developed in Bhattacharyya (2003), we predict that for assets
with negative expected returns, such as state lottery games, expected
return will be a declining and convex function of skewness. That is,
lottery players trade-off expected return for skewness. Using two samples
of lottery game data, we find that our theoretical conclusions are
supported by the empirical results. The findings obtained here not only
contribute to the literature on why individuals may participate in unfair
gambles, the framework could be extended to an analysis of the stock
market where higher returns cannot be solely explained by risk (variance).
Journal: Applied Economics
Pages: 27-34
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701335587
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335587
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:27-34
Template-Type: ReDIF-Article 1.0
Author-Name: Kathryn Combs
Author-X-Name-First: Kathryn
Author-X-Name-Last: Combs
Author-Name: Jaebeom Kim
Author-X-Name-First: Jaebeom
Author-X-Name-Last: Kim
Author-Name: John Spry
Author-X-Name-First: John
Author-X-Name-Last: Spry
Title: The relative regressivity of seven lottery games
Abstract:
We study the implicit tax incidence of raising state revenue through a
monopoly state-run lottery using a new dataset on individual Minnesota
lottery game sales by zip code. We use the bootstrap to compute SEs and
construct confidence intervals for Suits Indices of seven lottery
products. We conclude that the implicit tax on each product is regressive,
and find statistically significant differences in regressivity between
some products. Minnesota's newly introduced G3 instant scratch product,
printed at time and place of purchase, is also the most regressive lottery
game.
Journal: Applied Economics
Pages: 35-39
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/13504850701439327
File-URL: http://www.tandfonline.com/doi/abs/10.1080/13504850701439327
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:35-39
Template-Type: ReDIF-Article 1.0
Author-Name: Cary Deck
Author-X-Name-First: Cary
Author-X-Name-Last: Deck
Author-Name: Jungmin Lee
Author-X-Name-First: Jungmin
Author-X-Name-Last: Lee
Author-Name: Javier Reyes
Author-X-Name-First: Javier
Author-X-Name-Last: Reyes
Title: Risk attitudes in large stake gambles: evidence from a game show
Abstract:
This article estimates the degree of risk aversion of contestants
appearing on 'Vas o No Vas', the Mexican version of 'Deal or No Deal'. We
consider both dynamic agents, who fully backward induct and myopic agents
that only look forward one period. Further, we vary the level of
forecasting sophistication by the agents. We find substantial evidence of
risk aversion, the degree of which is more modest than what is typically
reported in the literature.
Journal: Applied Economics
Pages: 41-52
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701235704
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701235704
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:41-52
Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Farrell
Author-X-Name-First: Lisa
Author-X-Name-Last: Farrell
Author-Name: David Forrest
Author-X-Name-First: David
Author-X-Name-Last: Forrest
Title: Measuring displacement effects across gaming products: a study of Australian gambling markets
Abstract:
This article seeks to establish the extent of displacement effects across
gaming products. This is a particularly difficult question to address with
precision. To date, many studies have looked at policy changes such as the
introduction of a new product into the market to assess the severity of
displacement effects. However, simple before and after comparisons are
invalid. One needs to know what the appropriate counterfactual would have
been in the absence of the policy change - which by its very nature is
unobservable. The alternative is to look at identical populations exposed
to different regimes. Australia represents such a natural experiment. In
Australia, Betting and Gaming legislation is determined at the state
level, giving rise to some interesting differentials across states within
a single country. This article estimates a state level (fixed effects)
panel data model, exploiting the intra-state differences in the portfolio
of gaming products available, to estimate the extent of displacement
effects across the gaming sector. The results are particularly relevant to
the current UK policy debate, which is focused on the potential impact on
the existing market following a forthcoming, radical deregulation of the
industry (with further liberalization proposed).
Journal: Applied Economics
Pages: 53-62
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701591379
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701591379
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:53-62
Template-Type: ReDIF-Article 1.0
Author-Name: Hasret Benar
Author-X-Name-First: Hasret
Author-X-Name-Last: Benar
Author-Name: Glenn Jenkins
Author-X-Name-First: Glenn
Author-X-Name-Last: Jenkins
Title: The economics of casino taxation
Abstract:
In this article, a model of the costs of a casino is developed that
focuses on the implications for economic welfare of different taxation
schemes for casinos. The situation being considered is in a country where
casinos cater exclusively to foreign tourists. The goal of the country is
to determine the maximum amount of taxes that can be extracted from the
activities of this sector under different systems of taxation. When the
price of gambling is set by regulation above its competitive level, the
economic losses created by excessive investment in the sector can be
reduced by taxation. A turnover tax on the amount gambled can maximize
both tax revenue and the economic welfare of the country. Due to
administrative constraints, a number of countries rely on the taxation of
the casinos' fixed assets or a combination of a turnover tax and a tax on
fixed costs. The model is applied to the situation in North Cyprus. The
annual economic efficiency loss from its poorly designed tax policies on
casino gambling is estimated to be about 0.5% of GDP.
Journal: Applied Economics
Pages: 63-73
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749656
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749656
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:63-73
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Winter
Author-X-Name-First: Stefan
Author-X-Name-Last: Winter
Author-Name: Martin Kukuk
Author-X-Name-First: Martin
Author-X-Name-Last: Kukuk
Title: Do horses like vodka and sponging? - On market manipulation and the favourite-longshot bias
Abstract:
One of the most striking empirical patterns of horse race betting markets
is the favourite-longshot bias: Bets on favourites have dramatically
higher expected returns than bets on longshots. The literature offers a
couple of different, though not mutually exclusive, explanations based on
risk preferences and probability perceptions. This article adds a new
possible explanation: The favourite-longshot bias may be the rational
answer of an honest audience to a simple, but highly lucrative cheating
opportunity of insiders. We provide anecdotal evidence that the type of
cheating we model here really takes place. What is more, by employing a
large scale German data set we are able to demonstrate that the pattern of
the favourite-longshot bias changes as the opportunity of cheating
vanishes. The changes we observe are in accord with the cheating model we
suggest.
Journal: Applied Economics
Pages: 75-87
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701731538
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701731538
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:75-87
Template-Type: ReDIF-Article 1.0
Author-Name: Marshall Gramm
Author-X-Name-First: Marshall
Author-X-Name-Last: Gramm
Author-Name: C. Nicholas McKinney
Author-X-Name-First: C. Nicholas
Author-X-Name-Last: McKinney
Author-Name: Douglas Owens
Author-X-Name-First: Douglas
Author-X-Name-Last: Owens
Title: The efficiency of exotic wagers in racetrack betting
Abstract:
Many empirical studies have found the existence of a bias where the
general public overestimates low probability events. This phenomenon has
been termed the favourite-longshot bias and has been much studied in
betting markets. This article looks at efficiency in multihorse 'exotic'
wagers using 11 194 races run at 35 U.S. racetracks. We find the standard
favourite-longshot in exacta wagers (involves picking the first two
finishers in order). Results are unclear for trifecta wagers (picking the
first three finishers in order).
Journal: Applied Economics
Pages: 89-97
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701466085
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701466085
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:89-97
Template-Type: ReDIF-Article 1.0
Author-Name: I. Graham
Author-X-Name-First: I.
Author-X-Name-Last: Graham
Author-Name: H. Stott
Author-X-Name-First: H.
Author-X-Name-Last: Stott
Title: Predicting bookmaker odds and efficiency for UK football
Abstract:
The efficiency of gambling markets has frequently been questioned. In
order to investigate the rationality of bookmaker odds, we use an ordered
probit model to generate predictions for English football matches and
compare these predictions with the odds of UK bookmaker William Hill.
Further, we develop a model that predicts bookmaker odds. Combining a
predictive model based on results and a bookmaker model based on previous
quoted odds allows us to compare directly William Hill opinion of various
teams with the team ratings generated by the predictive model. We also
compare the objective value of individual home advantage and distance
travelled with the value attributed to these factors by bookmakers. We
show that there are systematic biases in bookmaker odds, and that these
biases cannot be explained by William Hill odds omitting valuable, or
excluding extraneous, information.
Journal: Applied Economics
Pages: 99-109
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701728799
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701728799
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:99-109
Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Vlastakis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Vlastakis
Author-Name: George Dotsis
Author-X-Name-First: George
Author-X-Name-Last: Dotsis
Author-Name: Raphael Markellos
Author-X-Name-First: Raphael
Author-X-Name-Last: Markellos
Title: Nonlinear modelling of European football scores using support vector machines
Abstract:
This article explores the linear and nonlinear forecastability of
European football match scores using IX2 and Asian Handicap odds data from
the English Premier league. To this end, we compare the performance of a
Poisson count regression to that of a nonparametric Support Vector Machine
(SVM) model. Our descriptive analysis of the odds and match outcomes
indicates that these variables are strongly interrelated in a nonlinear
fashion. An interesting finding is that the size of the Asian Handicap
appears to be a significant predictor of both home and away team scores.
The modelling results show that while the SVM is only marginally superior
on the basis of statistical criteria, it manages to produce out-of-sample
forecasts with much higher economic significance.
Journal: Applied Economics
Pages: 111-118
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701731546
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701731546
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:111-118
Template-Type: ReDIF-Article 1.0
Author-Name: David Forrest
Author-X-Name-First: David
Author-X-Name-Last: Forrest
Author-Name: Robert Simmons
Author-X-Name-First: Robert
Author-X-Name-Last: Simmons
Title: Sentiment in the betting market on Spanish football
Abstract:
We employ a sample of over 3000 bets available on matches from the top
tier of Spanish football in an examination of the efficiency of betting
odds offered in the on-line betting market. Odds appear to be influenced
by the relative number of fans of each club in a match, with supporters of
the more popular team offered more favourable terms on their wagers. We
report similar findings for a sample of games from Scotland. The results
contrast with studies of American sports betting markets but are
consistent with competitive behaviour by profit maximizing bookmakers in a
market where bettors can choose between several operators.
Journal: Applied Economics
Pages: 119-126
Issue: 1
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701522895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522895
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Handle: RePEc:taf:applec:v:40:y:2008:i:1:p:119-126
Template-Type: ReDIF-Article 1.0
Author-Name: Bob Barnes
Author-X-Name-First: Bob
Author-X-Name-Last: Barnes
Title: A Cointegrating approach to budget deficits and long-term interest rates
Abstract:
A cointegrating approach is undertaken in this study to determine if
there is a long-run equilibrium relationship between budget deficits and
long-term interest rates for the United States and nine European
countries. The cointegration approach consists of conducting cointegration
tests and then testing several hypothesized values for the deficit and
price expectations variables. The cointegration results suggest the
existence of several significant cointegrating vectors for each of the ten
countries, which would seem to appeal to the view of budget deficits
having a positive impact on long-term interest rates. The hypothesized
values for the deficit and price expectations variables are found to be
too strict since the hypotheses are rejected in every case but one.
Journal: Applied Economics
Pages: 127-133
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749722
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749722
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:127-133
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Flexible trend-cycle decomposition of nonstationary multivariate time series
Abstract:
A flexible method for the trend-cycle decomposition of nonstationary
multivariate time series is proposed. In this method, each time series is
decomposed into a common or individual stochastic trend, a common or
individual stationary cycle, and observation noise components. The
combination of variables for a common trend or for a common cycle and the
introduction of economic-theory-based trend are flexible and determined
using the Akaike information criterion. Simulation results suggest that
the proposed method works well, and two examples are shown to illustrate
the efficacy of the proposed method, particularly by investigating the
predictive accuracy.
Journal: Applied Economics
Pages: 135-147
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749573
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749573
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:135-147
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Van der Meer
Author-X-Name-First: Peter
Author-X-Name-Last: Van der Meer
Title: Is the gender wage gap declining in the Netherlands?
Abstract:
In this paper I try to answer the question whether the gender wage gap in
the Netherlands is declining. I posed this question because on several
other indicators labour market differences between men and women in the
Netherlands declined or disappeared altogether. First of all the labour
market participation of women has increased and women on the labour market
are no longer a small minority. Second, the difference in productive
characteristics between men and women is disappearing. Third, both product
and labour markets have become increasingly competitive, due to changes in
regulation like anti-trust laws, which should have an effect on the gender
wage gap. Contrary to these expectations I did not find a declining gender
wage gap. The data in Dutch Institute for Labour Studies (OSA) labour
supply panel show a steady gender gap of approximately nineteen per cent.
At most twenty-five to thirty per cent of the gap can be explained by
productivity differences. The largest part of the gender wage gap is due
to 'price' differences. Both cross-section and panel analyses give the
same answer.
Journal: Applied Economics
Pages: 149-160
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749557
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749557
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:149-160
Template-Type: ReDIF-Article 1.0
Author-Name: Titus Awokuse
Author-X-Name-First: Titus
Author-X-Name-Last: Awokuse
Title: Trade openness and economic growth: is growth export-led or import-led?
Abstract:
Most previous investigations have only focused on the effect of export
expansion on economic growth while ignoring the potential growth-enhancing
contribution of imports. This article re-examines the relationship between
trade and economic growth in Argentina, Colombia, and Peru with emphasis
on both the role of exports and imports. Granger causality tests and
impulse response functions were used to examine whether growth in trade
stimulate economic growth (or vice versa). The results suggest that the
singular focus of past studies on exports as the engine of growth may be
misleading. Although there is some empirical evidence supporting
export-led growth, the empirical support for import-led growth hypothesis
is relatively stronger. In some cases, there is also evidence for reverse
causality from gross domestic product growth to exports and imports.
Journal: Applied Economics
Pages: 161-173
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749490
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749490
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:161-173
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Title: The long and short of money: short-run dynamics within a structural model
Abstract:
Empirical examinations into aggregate money demand functions, generally,
incorporate a monetary aggregate as the dependent variable. While this
custom may be inefficient, it does not create any new difficulties for
estimating the demand function's long-run parameters, as money supply
would equal money demand. The short-run estimates, however, are not as
fortunate. As the monetary aggregate is a measure of supply and not
demand, one needs to tease out the short-run responses associated with
money demand changes with those which are associated with monetary supply
shocks. The present article, therefore, proposes a more complete
representation of monetary sector behaviour and in doing so, finds
significant support for the so-called buffer stock money demand models.
Journal: Applied Economics
Pages: 175-192
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749805
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:175-192
Template-Type: ReDIF-Article 1.0
Author-Name: C. Moons
Author-X-Name-First: C.
Author-X-Name-Last: Moons
Author-Name: A. Van Poeck
Author-X-Name-First: A.
Author-X-Name-Last: Van Poeck
Title: Does one size fit all? A Taylor-rule based analysis of monetary policy for current and future EMU members
Abstract:
This article uses the Taylor rule to examine the appropriateness of
European Central Bank (ECB) interest rate policy for the initial European
Monetary Union (EMU) members and the 10 new EMU member states some of whom
are expected to join the Eurozone in 2006-2007. Specifically it addresses
three questions. (1) Are there differences between the interest rate
aggregated from the Taylor interest rates of individual member states in
the euro area and the interest rate set by the ECB? (2) For which
countries do the desired interest rates according to the original Taylor
rule and the interest rate of the euro area differ most and in which
respect? (3) The last question is whether the interest rate gaps change
over time. We find that the ECB's policy does not fit individual EMU
members equally well and this result is unlikely to be changed with the
addition of the 10 new members, which will have only a marginal effect on
the ECB interest rate stance.
Journal: Applied Economics
Pages: 193-199
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749763
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749763
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:193-199
Template-Type: ReDIF-Article 1.0
Author-Name: Ai-Chi Hsu
Author-X-Name-First: Ai-Chi
Author-X-Name-Last: Hsu
Author-Name: Shu-Chin Liu
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Liu
Title: The hurdle models choice between truncated normal and lognormal
Abstract:
The purpose of this article is to compare and evaluate statistical models
for corner solution applications of censored regression. Generally, a
double-hurdle model is better than one-part model. Cragg (1971) suggests a
double-hurdle model, the truncated normal model, is widely used. However,
the lognormal model is easy to have the economic interpretation than the
Cragg's model. We use the simulation and empirical data to test both the
models. The results show that the lognormal model is usually more robust
than the truncated normal model. While the lognormal model has valuable
application in censored data, its potential usefulness should not be
overlooked.
Journal: Applied Economics
Pages: 201-207
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749581
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749581
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:201-207
Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsiu Laih
Author-X-Name-First: Chen-Hsiu
Author-X-Name-Last: Laih
Author-Name: Kuan-Yu Chen
Author-X-Name-First: Kuan-Yu
Author-X-Name-Last: Chen
Title: Economics on the optimal n-step toll scheme for a queuing port
Abstract:
This article establishes a series of the optimal n-step toll schemes
(where n = 1, 2, 3, …) which are levied to container ships for a
queuing port. Container ships' arrival times at the port will be
rationally dispersed after pricing the optimal n-step toll schemes.
Consequently, the queuing time at the anchorage to all container ships
will be rationally decreased. This article also shows the regularities in
arrival time values, equilibrium values of queuing and operating costs,
and decisions of arrival time adjustment under the optimal n-step toll
schemes. All of these are important information if the port queuing
pricing is planned to put into practice by the authorities.
Journal: Applied Economics
Pages: 209-228
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749870
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749870
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:209-228
Template-Type: ReDIF-Article 1.0
Author-Name: Yoon-Jun Lee
Author-X-Name-First: Yoon-Jun
Author-X-Name-Last: Lee
Author-Name: Jeong-Dong Lee
Author-X-Name-First: Jeong-Dong
Author-X-Name-Last: Lee
Title: Technology strategy for enhancing the public-to-private technology transfer: evidence from the duration of patent
Abstract:
Patents are typically characterized as assets of great values.
Nevertheless, there are many patents that are actually never used. In this
article, we claim that there is a relationship between the duration of
patents and the characteristics of the underlying invention. From the
viewpoint of Public Research Institutes, the duration of patents may be a
proxy of probability of technology transfer because the long lived patents
have higher value and more chances to be transferred. We characterize the
patents along different dimensions captured by the renewal and application
data, i.e. collaboration, scope, competitiveness and attractiveness. The
results of hazard rate duration analysis tell us that long lived patents
are characterized by being more focused, having more competitiveness, and
being more collaborative. In addition, it is analysed that patents in
chemical industry expire faster than those in electrical/electronic
industry. Though this fact is against the general intuition, it may be
reasonable from a viewpoint of technology transfer.
Journal: Applied Economics
Pages: 229-240
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749854
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749854
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:229-240
Template-Type: ReDIF-Article 1.0
Author-Name: Salvador Gil-Pareja
Author-X-Name-First: Salvador
Author-X-Name-Last: Gil-Pareja
Author-Name: Simon Sosvilla-Rivero
Author-X-Name-First: Simon
Author-X-Name-Last: Sosvilla-Rivero
Title: Price convergence in the European car market
Abstract:
This article examines price convergence in the European Union (EU) car
market over the period 1995 to 2005. We find that there is a clear
evidence of price convergence among the EU15 countries, but not before
1999. Moreover, countries of the Economic and Monetary Union (EMU) started
convergence previously to the EU15 as a whole. Finally, exchange rate
changes have significantly contributed to price dispersion over time
across countries. The results provide significant evidence that trade
liberalization and the EMU have enhanced the process of regional
integration in the European automobile industry, even though there is room
for further measures to promote integration.
Journal: Applied Economics
Pages: 241-250
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749847
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749847
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:241-250
Template-Type: ReDIF-Article 1.0
Author-Name: HuiChen Chiang
Author-X-Name-First: HuiChen
Author-X-Name-Last: Chiang
Title: Financial intermediary's choice of borrowing
Abstract:
This research investigates several dynamic stochastic models of a bank's
management problem of the term structures of its assets and liabilities. A
bank can either eliminate most of its interest risk with appropriate
options, or it can utilize its expertise in its core business and seek
extraordinary profits. This research concerns a bank with the latter goal.
In this model, the bank seeks to maximize the expected present value of
dividend issued subject to the Federal Reserve's regulatory constraint and
liquidity constraint. With this model, we find that if the available
deposits are not too high and the level of liquid assets is high enough,
then it is optimal for a bank to accept all of the available deposits.
However, if the level of liquid assets is too low, then a bank should not
issue a dividend or to accept any deposits. The properties are still valid
even if the bank is not risk neutral.
Journal: Applied Economics
Pages: 251-260
Issue: 2
Volume: 40
Year: 2007
X-DOI: 10.1080/00036840600749706
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749706
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Handle: RePEc:taf:applec:v:40:y:2007:i:2:p:251-260
Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Menkhoff
Author-X-Name-First: Lukas
Author-X-Name-Last: Menkhoff
Author-Name: Rafael Rebitzky
Author-X-Name-First: Rafael
Author-X-Name-Last: Rebitzky
Author-Name: Michael Schroder
Author-X-Name-First: Michael
Author-X-Name-Last: Schroder
Title: Do dollar forecasters believe too much in PPP?
Abstract:
This article extends earlier studies on exchange-rate expectations'
formation by using new data and adding information about forecasters'
reliance on fundamental analysis for the first time. We replicate the
conventional result of nonrational expectations. Moreover, biases in
expectations are identified as professionals significantly believe too
much in mean reversion, mean being represented by purchasing power parity
(PPP). When respondents are grouped on their reliance to fundamental
analysis, fundamentalists reveal an even stronger bias. Those, who rely
the least on fundamentals - preferring technical analysis instead - show a
significantly smaller bias towards PPP in lieu of expecting too much trend
extrapolation. Biased beliefs will grow stronger when the US Dollar is
further away from PPP. Finally, the accuracy of the expectations is poor
for both groups, however, we find directional forecasting ability.
Journal: Applied Economics
Pages: 261-270
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500428153
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428153
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:261-270
Template-Type: ReDIF-Article 1.0
Author-Name: I. -H. Cheng
Author-X-Name-First: I. -H.
Author-X-Name-Last: Cheng
Author-Name: Y. -Y. Tsai
Author-X-Name-First: Y. -Y.
Author-X-Name-Last: Tsai
Title: Estimating the staged effects of regional economic integration on trade volumes
Abstract:
This article compares various specifications of the gravity model of
trade, which are commonly used in the literature. It shows that most of
them can be regarded as nested versions of a general specification in
which the heterogeneity of bilateral country-pair fixed effects is
accounted for. This article constructs a modified gravity model in which
both the conventional gravity variables and price-effect variable are
included. It intends to discuss the trend of the effects of the
enlargement and enhancement of regional blocs, particularly taking account
of the staged effects to investigate the effects of regional economic
agreements on trade volumes. The differences of the effects across
regional blocs are investigated.
Journal: Applied Economics
Pages: 383-393
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600606252
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606252
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:383-393
Template-Type: ReDIF-Article 1.0
Author-Name: Murali Adhikari
Author-X-Name-First: Murali
Author-X-Name-Last: Adhikari
Author-Name: Krishna Paudel
Author-X-Name-First: Krishna
Author-X-Name-Last: Paudel
Author-Name: Jack Houston
Author-X-Name-First: Jack
Author-X-Name-Last: Houston
Author-Name: James Bukenya
Author-X-Name-First: James
Author-X-Name-Last: Bukenya
Title: Assessing the impacts of stochastic trend in crop acreage supply response model
Abstract:
This paper demonstrates the need to revisit the way a technical change
has been incorporated in a crop acreage supply response model. Three
different versions of technological change were introduced and compared:
no trend, deterministic trend, and stochastic trend. The results confirm
the need to treat a technology variable as a stochastic trend for better
results in crop acreage supply response model specifications.
Journal: Applied Economics
Pages: 295-302
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500461881
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461881
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:295-302
Template-Type: ReDIF-Article 1.0
Author-Name: Inung Jung
Author-X-Name-First: Inung
Author-X-Name-Last: Jung
Author-Name: Philip Gayle
Author-X-Name-First: Philip
Author-X-Name-Last: Gayle
Author-Name: Dale Lehman
Author-X-Name-First: Dale
Author-X-Name-Last: Lehman
Title: Competition and investment in telecommunications
Abstract:
This study examines the relationship between competition and investment
by Incumbert Local Exchange Carriers (ILECs) in US telecommunications
markets. A panel data model and a dynamic panel data model that have not
been used in previous studies are applied in this analysis. Results of the
panel data model suggest that investment by ILECs is positively related to
the market share of Competitive Local Exchange Carriers (CLECs), and
negatively to the absolute number of CLECs. However, once the persistence
in ILECs' investment behaviour is controlled for using the dynamic model,
our measures of the existing competition from CLECs, at best, have a weak
effect on ILECs' investment. Therefore, while strengthening competition in
the telecom sector may be key to restoring telecom investment, it is
uncertain that competition spurred by the mandatory sharing policy in this
sector stimulates ILECs' incentives to invest in new infrastructure.
Journal: Applied Economics
Pages: 303-313
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600592882
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592882
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:303-313
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Groom
Author-X-Name-First: Ben
Author-X-Name-Last: Groom
Author-Name: Phoebe Koundouri
Author-X-Name-First: Phoebe
Author-X-Name-Last: Koundouri
Author-Name: Celine Nauges
Author-X-Name-First: Celine
Author-X-Name-Last: Nauges
Author-Name: Alban Thomas
Author-X-Name-First: Alban
Author-X-Name-Last: Thomas
Title: The story of the moment: risk averse cypriot farmers respond to drought management
Abstract:
This article illustrates the importance of estimating risk preferences
when evaluating water policy. Using agricultural production data from the
Kiti region of Cyprus we estimate farmers' risk preferences a la Antle
(Journal of Business and Economic Statistics, 1, 192-201, 1983, American
Journal of Agricultural Economics, 69, 509-22, 1987) and show sensitivity
to higher order moments of profit, such as skewness. We show that farmers
in the Kiti region are risk averse with risk premiums in the region of 20%
of expected profit. We use these estimates to analyse the impact of a
water quota from the perspective of three policy-makers who differ only in
their understanding of farmers' risk preferences. We show in the case of
Kiti that policy-makers who model risk preferences incorrectly, that is,
either; (a) assume risk neutrality or; (b) ignore down-side risk, wrongly
predict the magnitude and direction of input responses and therefore the
magnitude of welfare changes. This highlights the importance of
accommodating preferences for higher order moments of profit in the
evaluation of water policy.
Journal: Applied Economics
Pages: 315-326
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600592916
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592916
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:315-326
Template-Type: ReDIF-Article 1.0
Author-Name: Marie-Estelle Binet
Author-X-Name-First: Marie-Estelle
Author-X-Name-Last: Binet
Title: Optimal local taxation and French municipal tax distortions
Abstract:
This article presents both theoretical and empirical findings in the
field of optimal local taxation i.e. neutral in locational decision. This
topic should throw light on the question of tax policy and tax reform. We
extend Wildasin's (1987) model, including mobile capital. In this way, we
include his marginal cost of congestion taxation rule relating to mobile
households (Proposition 1). This extension provides us with a new rule
(Proposition 2): the optimal share-out of taxes among household residents
and firms in municipalities. To illustrate these results, we discuss the
French municipal tax system properties and we pick out its main
distortions.
Journal: Applied Economics
Pages: 327-332
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500427874
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500427874
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:327-332
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Hinrichs
Author-X-Name-First: Jan
Author-X-Name-Last: Hinrichs
Author-Name: Oliver Musshoff
Author-X-Name-First: Oliver
Author-X-Name-Last: Musshoff
Author-Name: Martin Odening
Author-X-Name-First: Martin
Author-X-Name-Last: Odening
Title: Economic hysteresis in hog production
Abstract:
German hog production only responds in a very limited way to price
fluctuations in the pork market. The hog production concentrates on a few
regions though it is not bound to special natural conditions such as soil
quality. Furthermore, the volume of production does not vary over time.
Relatively high market risks, sunk costs and the flexibility of the
decision maker to defer investments characterize decision problems in hog
production. Thus the real option approach is chosen to explain the inertia
in production capacity. By the use of panel data of specialized hog farms
from the German Farm Accountancy Data Network, an empirical investment
model is estimated. Formally, the model has the structure of a generalized
ordered probit model. This approach allows to test for economic hysteresis
in the adjustment of hog production capacity. The results confirm that
uncertainty and flexibility widen the optimal range of inaction.
Journal: Applied Economics
Pages: 333-340
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500447880
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447880
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:333-340
Template-Type: ReDIF-Article 1.0
Author-Name: William Miles
Author-X-Name-First: William
Author-X-Name-Last: Miles
Title: Exchange rates, inflation and growth in small, open economies: a difference-in-differences approach
Abstract:
Financial crises in emerging markets have led many observers to recommend
abandoning fixed exchange rates and adopting more flexible regimes.
Moreover, some recent research suggests that the correct exchange rate
regime may have a significant effect on inflation and even economic
growth. The estimated effect found in such studies, however, likely
suffers from an upward bias, as countries which choose a given exchange
rate regime have other hard-to-measure policies and attributes which also
affect economic performance. Utilizing a recent data set on actual, as
opposed to official exchange rate regimes, this article employs the
difference-in-differences method, currently popular in applied
microeconomics, to a set of emerging markets that switched to more
flexible currency policies. Results indicate that, contrary to previous
studies, exchange rates themselves exert no significant impact on
inflation or output.
Journal: Applied Economics
Pages: 341-348
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600639881
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600639881
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:341-348
Template-Type: ReDIF-Article 1.0
Author-Name: Vani Borooah
Author-X-Name-First: Vani
Author-X-Name-Last: Borooah
Title: Bridging the gap between the measurement of poverty and of deprivation
Abstract:
One way of measuring the deprivation or poverty of persons is to use
money based measures: a person is regarded as 'poor' if his/her income (or
expenditure) falls below a poverty line value. Such an approach-usually
termed 'poverty analysis'-has spawned a large literature embodying several
sophisticated measures of poverty. The downside to this is that low income
or expenditure may not be very good indicators of deprivation. Another
way, usually termed 'deprivation analysis', is to define an index whose
value, for each person, is the number (or proportion) of items, from a
prescribed list, that he/she possesses: persons are then regarded as
'deprived' if their index value is below some threshold value. This offers
an alternative method of identifying deprived persons. The downside of
deprivation analysis is that it measures deprivation exclusively in terms
of the proportion of deprived persons in the total number of persons. The
purpose of this paper is to bridge the gap between poverty and deprivation
analysis by constructing a wider set of deprivation measures and showing,
with data for Northern Ireland, how they might be applied.
Journal: Applied Economics
Pages: 349-356
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500426926
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500426926
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:349-356
Template-Type: ReDIF-Article 1.0
Author-Name: Hyun Joung Jin
Author-X-Name-First: Hyun Joung
Author-X-Name-Last: Jin
Author-Name: Jang-Chul Kim
Author-X-Name-First: Jang-Chul
Author-X-Name-Last: Kim
Title: The effects of the BSE outbreak on the security values of US agribusiness and food processing firms
Abstract:
A case of Bovine Spongiform Encephalopathy (BSE) was found on December,
2003 in the United States, which affected offshore and domestic demands
for US beef. This study evaluates the effects of the BSE outbreak on the
security values of the US agribusiness and food processing firms, using an
event study. Empirical results indicate that the beef industry was
significantly, negatively affected, but other meat industries benefited
significantly. For the sectors not immediately involved with beef
products, the effects were small or negligible.
Journal: Applied Economics
Pages: 357-372
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500461824
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461824
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:357-372
Template-Type: ReDIF-Article 1.0
Author-Name: Juthathip Jongwanich
Author-X-Name-First: Juthathip
Author-X-Name-Last: Jongwanich
Title: Real exchange rate overvaluation and currency crisis: evidence from Thailand
Abstract:
This article examines real exchange rate (RER) misalignment in Thailand
in the lead-up to the 1997-1998 currency crisis. The methodology involves
estimating the long-run equilibrium RER based on the internal and external
balance approach. RER misalignment is measured by comparing the actual RER
with the estimated long-run equilibrium RER. The results suggest that
there was a persistent RER overvaluation from 1991 up to the onset of the
crisis in 1997. 'Too much' net short-term capital inflows and government
expenditure expansion were the main contributory factors. After the
massive depreciation of nominal exchange rate during the crisis, the RER
seems to have gradually returned to its long-run equilibrium level.
Journal: Applied Economics
Pages: 373-382
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600570961
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600570961
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:373-382
Template-Type: ReDIF-Article 1.0
Author-Name: Min-Hsien Chiang
Author-X-Name-First: Min-Hsien
Author-X-Name-Last: Chiang
Author-Name: Jo-Yu Wang
Author-X-Name-First: Jo-Yu
Author-X-Name-Last: Wang
Title: Regime switching cointegration tests for the Asian stock index futures: evidence for MSCI Taiwan, Nikkei 225, Hong Kong Hang-Seng, and SGX Straits Times indices
Abstract:
This study applies a cointegration system that considers regime shifts in
order to study the long-run relationship between the stock index and stock
index futures markets. The MSCI Taiwan, Nikkei 225, Hong Kong Hang-Seng,
and Singapore Exchange (SGX) Straits Times indices are examined. The
empirical evidence shows that the cointegration system with regime shifts
performs better than the usual cointegration system without considering
regime shifts.
Journal: Applied Economics
Pages: 285-293
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500400251
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500400251
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:285-293
Template-Type: ReDIF-Article 1.0
Author-Name: Luiz de Mello
Author-X-Name-First: Luiz
Author-X-Name-Last: de Mello
Title: Estimating a fiscal reaction function: the case of debt sustainability in Brazil
Abstract:
This article reviews recent trends in fiscal performance in Brazil,
estimates fiscal reaction functions for the consolidated public sector and
different levels of government, and tests for the sustainability of the
public debt dynamics. The empirical analysis, based on monthly data for
the period 1995-2004, suggests that all levels of government react
strongly to changes in indebtedness by adjusting their primary budget
surplus targets. In addition, the central government appears to follow a
spend-and-tax policy: changes in revenue are affected strongly by
expenditure. About two-thirds of changes in primary spending are offset by
higher revenue over the longer term. Institutions are also found to matter
for fiscal sustainability. The responsiveness of the sub-national fiscal
stance to indebtedness, as well as that of central government revenue to
changes in primary spending, appears to have become stronger after 1998,
when ceilings on indebtedness were introduced.
Journal: Applied Economics
Pages: 271-284
Issue: 3
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500461873
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500461873
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Handle: RePEc:taf:applec:v:40:y:2008:i:3:p:271-284
Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Wanli Zhao
Author-X-Name-First: Wanli
Author-X-Name-Last: Zhao
Title: International interdependence of an emerging market: the case of Iran
Abstract:
In this study the interdependence between Iran, its major trading
partners and the United States is investigated using vector
autoregression, generalized impulse response function and generalized
variance decomposition techniques, introduced by Pesaran and Shin (1998).
These techniques have an advantage over the commonly used impulse response
and variance decomposition procedures in that they are insensitive to the
ordering of the countries considered and hence, they produce more reliable
results. The countries included in the sample, besides Iran are, France,
Germany, Spain, Japan, South Korea, Brazil, Italy and the United States.
The direction, strength, durability and stability of the effect of shocks
in one market on the return patterns of the other markets are examined.
The findings are 4-fold. First, the effect of past own market shocks on
current behaviour is significant, beyond the first month, in most cases.
Second, the own effect is stronger for the emerging markets such as Iran
and Brazil, than the industrialized countries. Third, cross-country
effects are short-lived for Brazil, Korea and Japan, but durable in the
case of Iran, Germany, Spain and the United States. Fourth, in terms of
breadth and strength, cross-country effects exhibit differential degrees
of interdependence and asymmetry. The observed lack of integration between
the Iranian market and the industrialized world makes it less vulnerable
to the effect of shocks in the latter countries but it also deprives it
from the flow of funds that could spur economic development and growth.
Journal: Applied Economics
Pages: 395-412
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600707027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707027
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:395-412
Template-Type: ReDIF-Article 1.0
Author-Name: Biing-Hwan Lin
Author-X-Name-First: Biing-Hwan
Author-X-Name-Last: Lin
Author-Name: Steven Yen
Author-X-Name-First: Steven
Author-X-Name-Last: Yen
Title: Consumer knowledge, food label use and grain consumption in the US
Abstract:
Responding to mounting evidence of the association between whole-grain
consumption and a reduced risk of heart problems and other diseases, as
well as an increased probability of body weight maintenance, the US
Government has strongly encouraged its citizens to increase consumption of
whole grains. However, compared against the 2005 Federal dietary
recommendations, in 1994-1996 only 6% of Americans met the current
recommended whole-grain consumption. To narrow this huge gap between
actual and recommended consumption of whole grains, considerable changes
in consumer behaviour will be needed. A demand system with two censored
consumption equations and endogenous food label use and nutrition
knowledge variables is estimated to investigate the factors that affect
the consumption of whole and refined grains. Food label use and nutrition
knowledge are found to play important roles in the consumption of refined-
and whole-grain products, as are sociodemographic variables. The results
can be used to help develop effective nutrition education messages and
targeting strategies to promote consumption of whole grains in Americans'
diets.
Journal: Applied Economics
Pages: 437-448
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600690298
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690298
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:437-448
Template-Type: ReDIF-Article 1.0
Author-Name: Yujing Shen
Author-X-Name-First: Yujing
Author-X-Name-Last: Shen
Title: Choice of a regular physician and health care utilization: principal-agent issues for American veterans
Abstract:
Using US Veterans Health Administration (VA) data, we examined factors
that affected patients choice of regular physicians and how the location
of regular physicians influenced patients health care use. Appropriate
estimation methods were applied to control for the endogeneity of patients
choice of regular physicians. Our study showed that VA enrollees with
regular VA physicians were more likely to use VA for inpatient care while
those with regular nonVA physicians were more likely to use VA for special
care such as pharmacy or mental health/substance abuse treatment, both of
which can have very limited coverage in nonVA settings.
Journal: Applied Economics
Pages: 449-463
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600707134
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707134
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:449-463
Template-Type: ReDIF-Article 1.0
Author-Name: Tahir Abdi
Author-X-Name-First: Tahir
Author-X-Name-Last: Abdi
Title: Machinery & equipment investment and growth: evidence from the Canadian manufacturing sector
Abstract:
New Growth Theory points to three potential influences on output and
productivity growth-investment in human capital, R&D and investment in
machinery and equipment (M&E). However, much of the literature focuses on
human capital and R&D as sources of growth. Few efforts have been made to
estimate the impact of M&E investment. This article presents empirical
models that endeavour to fill this gap. Using panel data on 20 Canadian
manufacturing industries (1961-1997) and time-series data (1961-2000) for
the entire Canadian manufacturing sector, this article finds that the
elasticities of output with respect to M&E capital stock and M&E
investment are well above capital's share of national income suggested by
a constant-returns-to-scale Cobb-Douglas production function. However, the
coefficient on labour is near its income share. The results also suggest
that M&E investment is not the only source of growth because the
elasticity of output with respect to structures investment is also well
above its income share, indicating the possible existence of
complementarities between the two types of capital.
Journal: Applied Economics
Pages: 465-478
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600690215
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690215
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:465-478
Template-Type: ReDIF-Article 1.0
Author-Name: Minoas Koukouritakis
Author-X-Name-First: Minoas
Author-X-Name-Last: Koukouritakis
Author-Name: Leo Michelis
Author-X-Name-First: Leo
Author-X-Name-Last: Michelis
Title: The term structure of interest rates in the 12 newest EU countries
Abstract:
This article uses cointegration and common trends techniques to
investigate empirically the expectations hypothesis of the term structure
of interest rates for the 10 new EU countries, along with Bulgaria and
Romania. The empirical results support the expectations theory of the term
structure for all countries except Malta. By decomposing each term
structure into its transitory and permanent components, we also analyse
short-run and long-run interdependence among the term structures of
interest rates in these countries. Our results indicate only weak linkages
among the term structures of the 10 new EU countries and strong linkages
between Bulgaria and Romania joined the EU in 2007.
Journal: Applied Economics
Pages: 479-490
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600690249
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690249
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:479-490
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chung Nieh
Author-X-Name-First: Chien-Chung
Author-X-Name-Last: Nieh
Author-Name: Jeng-Bau Lin
Author-X-Name-First: Jeng-Bau
Author-X-Name-Last: Lin
Author-Name: Yu-Shan Wang
Author-X-Name-First: Yu-Shan
Author-X-Name-Last: Wang
Title: Regime-switching analysis for the impacts of exchange rate volatility on corporate values: a Taiwanese case
Abstract:
A second-moment, regime-switching model with not only a switching
intercept and a switching slope, but also a switching error variance, is
applied to examine the impacts of exchange rate volatility (ERV) on
corporate values (CV) for the 10 industries investigated in Taiwan. Two
different regimes categorized as strong-impact and weak-impact are
identified. The dominant power varies from one industry to another. The
Wald statistics for the null of equality are ambiguous, which show that if
the Markov-switching (MS) model is plausible, then the ERV might not be
one major factor, but another factor that could switch the CV of Taiwan's
industries. For the model's volatility influence, the data of 8 out of 10
industries are shown to fit a two-state model when the volatility is
stimulated. A two-state, first-order MS model is appropriate for the
'goodness of fit' analysis at the 10% significant level.
Journal: Applied Economics
Pages: 491-504
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600690066
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690066
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:491-504
Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Lynge Jensen
Author-X-Name-First: Carsten Lynge
Author-X-Name-Last: Jensen
Author-Name: Bernt Aarset
Author-X-Name-First: Bernt
Author-X-Name-Last: Aarset
Title: Explaining noncompliance in the Norwegian coastal cod fishery: an application of the multinomial logit
Abstract:
Establishing motive is central to the analysis of criminal behaviour.
This article analyses the range of motives for noncompliant behaviour
among coastal cod fishermen. A multinomial logit model is employed to
analyse the reasons that underlie various motives. The four motives
compared in this study are economic, technological and social and motives
caused by bureaucracy and legitimacy problems. The economic motive is
found to be most important for coastal fishermen. However, the
cross-sectional data indicate that motives vary with fishing gear, vessel
length and fishermen's age. The results indicate that identifying motives
for noncompliant behaviour is not straightforward but is important for
reducing the extent of infringements of the regulations. Fishermen who use
gill net, seine and long line, for example, are more often motivated to
noncompliance by technical problems and bureaucracy than hand-jig fishers.
The study suggests that in order to prevent noncompliance behaviour, the
authorities' management policy should be designed to address the problems
encountered by different categories of fishers. For example, offences that
are committed because of technical problems should be resolved by
increasing the involvement of fishermen in the process of drawing up
regulations, whereas offences motivated by economic factors should be
reduced by increasing inspections.
Journal: Applied Economics
Pages: 505-513
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600606245
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600606245
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:505-513
Template-Type: ReDIF-Article 1.0
Author-Name: Obiyathulla Ismath Bacha
Author-X-Name-First: Obiyathulla Ismath
Author-X-Name-Last: Bacha
Title: A common currency area for ASEAN? issues and feasibility
Abstract:
This article examines the feasibility of a Common Currency Area (CCA) for
ASEAN and the broader ASEAN +5. Using macro-economic data for 14 East
Asian countries over the 34-year period 1970-2003, this article addresses
whether a Euro style CCA would be well suited for these countries. Issues
such as the costs and benefits involved and which countries may be best
suited are examined. Previous literature on currency unions have
identified synchronous business cycles, similarity in inflation levels and
policy congruence to be among essential preconditions. A Vector
Autoregression Model and Correlation Analysis is used to examine common
linkages among the 14 sample countries. Impulse response functions and
variance decomposition is used to identify potential candidates among the
14 countries. The results show an absence of broad-based common linkages.
Instead, several paired clusters are identified as potential candidates.
The results imply that while a region-wide CCA may not now be feasible, a
strategy of beginning with paired clusters and then expanding may be a
logical progression if a currency union is a desired objective.
Journal: Applied Economics
Pages: 515-529
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600675653
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600675653
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:515-529
Template-Type: ReDIF-Article 1.0
Author-Name: Charlene Kalenkoski
Author-X-Name-First: Charlene
Author-X-Name-Last: Kalenkoski
Title: Parent-child bargaining, parental transfers, and the post-secondary education decision
Abstract:
Schooling decisions are often modelled within a unitary preference
framework. In this article, an alternative to the unitary preference model
is proposed in which parents and child have conflicting preferences over
parental transfers and the level of post-secondary schooling and
participate in cooperative bargaining as a means of resolving this
conflict. Comparisons of the implications of the bargaining and unitary
preference models motivate tests of parental altruism and income pooling.
To test these hypotheses, reduced form transfer and schooling equations
are estimated using data from the High School and Beyond Surveys. The
evidence suggests that the unitary preference model be rejected.
Journal: Applied Economics
Pages: 413-436
Issue: 4
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600690264
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600690264
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Handle: RePEc:taf:applec:v:40:y:2008:i:4:p:413-436
Template-Type: ReDIF-Article 1.0
Author-Name: Karel Jan Alsem
Author-X-Name-First: Karel Jan
Author-X-Name-Last: Alsem
Author-Name: Steven Brakman
Author-X-Name-First: Steven
Author-X-Name-Last: Brakman
Author-Name: Lex Hoogduin
Author-X-Name-First: Lex
Author-X-Name-Last: Hoogduin
Author-Name: Gerard Kuper
Author-X-Name-First: Gerard
Author-X-Name-Last: Kuper
Title: The impact of newspapers on consumer confidence: does spin bias exist?
Abstract:
It is sometimes argued that news reports in the media suffer from biased
reporting. Mullainathan and Shleifer (2002, 2005) argue that there are two
types of media bias. One bias, called ideology, reflects a news outlet's
desire to affect reader opinions in a particular direction. The second
bias, referred to as 'spin' or 'slanting', reflects the outlet's attempt
to simply create a memorable story. Competition between outlets can
eliminate the effect of ideological bias, but increases the incentive to
spin or slant stories. We examine whether we find some evidence of spin in
Dutch newspaper reporting on the state of the economy. If newspapers are
indeed able to create memorable stories this should, according to our
hypothesis, affect the opinion of readers with respect to the state of the
economy. Sentiments about the actual state of the economy could be
magnified by spin. As a result, consumer confidence-a variable that
routinely measures the opinion on the state of the economy-can be expected
to be affected not only by economic fundamentals, but also by the way
these fundamentals are reported. We construct a variable that reflects the
way consumers perceive economic news reported in newspapers. We find that
this variable indeed has a significant impact on consumer confidence,
which is short-lived.
Journal: Applied Economics
Pages: 531-539
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600707100
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707100
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:531-539
Template-Type: ReDIF-Article 1.0
Author-Name: Carolina Navarro
Author-X-Name-First: Carolina
Author-X-Name-Last: Navarro
Author-Name: Luis Ayala
Author-X-Name-First: Luis
Author-X-Name-Last: Ayala
Title: Multidimensional housing deprivation indices with application to Spain
Abstract:
The main aim of this article is to define a multidimensional housing
deprivation index and identify the main determining characteristics of
this phenomenon, using Spain as reference. A latent variable model is used
in order to overcome some of the traditional difficulties encountered in
multidimensional deprivation studies. The construction of a latent
structure model has allowed a set of partial housing deprivation indices
to be grouped together under a single index. It has also enabled each
individual to be assigned to a different class depending on the level and
type of deprivation. Results show that the vector of observed variables
(having hot running water, heating, a leaky roof, damp walls or floor, rot
in window frames and floors and overcrowding) and the correlations among
such variables can be explained by a single latent variable. There are
also specific characteristics that differentiate the population affected
by housing deprivation.
Journal: Applied Economics
Pages: 597-611
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600722323
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722323
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:597-611
Template-Type: ReDIF-Article 1.0
Author-Name: David Hadley
Author-X-Name-First: David
Author-X-Name-Last: Hadley
Author-Name: Xavier Irz
Author-X-Name-First: Xavier
Author-X-Name-Last: Irz
Title: Productivity and farm profit - a microeconomic analysis of the cereal sector in England and Wales
Abstract:
This article implements the profit change decomposition methodology
developed by Grifell-Tatje and Lovell (1999). Profit change over time is
first decomposed into a price effect and a quantity effect; the quantity
effect is then decomposed into a productivity effect and an activity
effect; in turn, the productivity effect is subdivided into a technical
efficiency effect and a technical change effect, while the activity effect
is divided into a scale effect, resource mix effect and product mix
effect. The end result is therefore a measure of six distinct components
of profit change. The methodology is used to investigate profit changes
for a sample of cereal farms drawn from the Farm Business Survey in
England and Wales for the period 1982 to 2000. The results of the analysis
show an overall decline in profit levels for the period at the average
speed of £4400 annually, with the major part of this decline
attributable to a negative price effect amounting to £7000 annually
on average. However, this was to some degree offset by a positive quantity
effect largely driven by the positive contribution of technical change to
profit growth, worth £4000 annually on average.
Journal: Applied Economics
Pages: 613-624
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600707209
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707209
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:613-624
Template-Type: ReDIF-Article 1.0
Author-Name: W. D. Walls
Author-X-Name-First: W. D.
Author-X-Name-Last: Walls
Title: Cross-country analysis of movie piracy
Abstract:
We examine the rate of motion-picture piracy across a sample of 26
diverse countries. The level of piracy is explained empirically by the
level of income, the cost of enforcing property rights, the level of
collectivism present in a country's social institution and the level of
internet usage. The results of a cross-country regression analysis
indicate that piracy is increasing in the level of social coordination and
the cost of enforcing property rights, unrelated to income and decreasing
in internet usage.
Journal: Applied Economics
Pages: 625-632
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/13504850600707337
File-URL: http://www.tandfonline.com/doi/abs/10.1080/13504850600707337
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:625-632
Template-Type: ReDIF-Article 1.0
Author-Name: Zeynel Abidin Ozdemir
Author-X-Name-First: Zeynel Abidin
Author-X-Name-Last: Ozdemir
Title: Efficient market hypothesis: evidence from a small open-economy
Abstract:
This article studies the efficient market hypothesis for the Istanbul
Stock Exchange National 100 (ISEN 100) price index within the Lumsdaine
and Papell two structural breaks unit root test framework. The main
finding of the article shows that the ISEN 100 index is characterized by a
unit root with two structural breaks, which is consistent with the
efficient market hypothesis. In addition, the article applies the
augmented Dickey-Fuller test, runs test and the variance-ratio test to
test the weak-form efficiency of the ISEN 100. The analyses are repeated
for three sub-periods delineated in view of the endogenously determined
break points.
Journal: Applied Economics
Pages: 633-641
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600722315
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722315
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:633-641
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Crespo Cuaresma
Author-X-Name-First: Jesus
Author-X-Name-Last: Crespo Cuaresma
Author-Name: Doris Ritzberger-Grunwald
Author-X-Name-First: Doris
Author-X-Name-Last: Ritzberger-Grunwald
Author-Name: Maria Antoinette Silgoner
Author-X-Name-First: Maria Antoinette
Author-X-Name-Last: Silgoner
Title: Growth, convergence and EU membership
Abstract:
The effect of European integration on long-term growth of the EU-15
member states is studied by means of panel data methods. The length of EU
membership is found to have a significant positive effect on economic
growth, which is relatively higher for poorer countries. While previous
empirical studies tend not to find positive growth effects of regional
integration, the present study suggests an asymmetric,
convergence-stimulating impact of EU membership on long-term growth.
Journal: Applied Economics
Pages: 643-656
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749524
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749524
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:643-656
Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Hsien Chen
Author-X-Name-First: Shu-Hsien
Author-X-Name-Last: Chen
Author-Name: Ming-Shu Hua
Author-X-Name-First: Ming-Shu
Author-X-Name-Last: Hua
Author-Name: Richard Stuetz
Author-X-Name-First: Richard
Author-X-Name-Last: Stuetz
Title: Measuring country event risk compensation on BRICs international portfolio management
Abstract:
The BRICs nations (Brazil, Russia, India and China) have a strong
relative economic growth pattern in the world among economic powers. The
allure of globalization has made the analysis and assessment of national
critical component of international portfolio management in recent years.
We construct the model from comparing the relative SD of stock return
whereby higher SDs are generally associated with more risk. This relative
SD forms a principle component in the change of the weights on the
international portfolio choice. The result shows that event jump risk not
only makes the investor's allocation more conservative overall, but also
it can be compensated on BRICs event risk.
Journal: Applied Economics
Pages: 657-665
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749474
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749474
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:657-665
Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Pinilla
Author-X-Name-First: Vicente
Author-X-Name-Last: Pinilla
Author-Name: Maria-Isabel Ayuda
Author-X-Name-First: Maria-Isabel
Author-X-Name-Last: Ayuda
Title: Market dynamism and international trade: a case study of Mediterranean agricultural products, 1850-1935
Abstract:
This article concentrates on analysing the rightward shifts of the demand
curve for Mediterranean agricultural products from 1850 to 1938. We have
found that such shifts were especially conditioned by the different income
elasticities of demand and by changes or otherwise, in consumer
preferences. Our aim is to show that there was an initial conditioning
factor for the producer countries to take full advantage of these
potential growth opportunities, namely the size of such shifts.
Journal: Applied Economics
Pages: 583-595
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600707258
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600707258
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:583-595
Template-Type: ReDIF-Article 1.0
Author-Name: Hendrik Jurges
Author-X-Name-First: Hendrik
Author-X-Name-Last: Jurges
Title: Self-assessed health, reference levels and mortality
Abstract:
The article studies the relationship between self-assessed health (SAH)
and subsequent mortality in the German Socio-Economic Panel. Specifically,
I examine whether socio-economic characteristics of respondents have an
effect on mortality, conditional on SAH. Such conditional effects are
shown to exist for various covariates, including age, income and wealth.
These findings question the comparability of SAH across different
socio-economic groups.
Journal: Applied Economics
Pages: 569-582
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500447823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500447823
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:569-582
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Stefania Di Giacomo
Author-X-Name-First: Stefania
Author-X-Name-Last: Di Giacomo
Author-Name: Damiano Pinnacchio
Author-X-Name-First: Damiano
Author-X-Name-Last: Pinnacchio
Title: Corporate social responsibility and corporate performance: evidence from a panel of US listed companies
Abstract:
We investigate whether inclusion and permanence in the domini social
index (DSI) affects corporate performance on a sample of around 1000 firms
in a 13-year interval by controlling for size, industry, business cycle
and time invariant firm idiosyncratic characteristics. Our results find
partial support to the hypothesis that corporate social responsibility is
a move from the shareholders wealth to a multi-stakeholders welfare
target. On the one side, permanence into the domini index (DI) is shown to
increase (reduce) significantly total sales per employee (returns on
equity but not when large and R&D investing firms are excluded from the
sample). On the other side, lower returns on equity for Domini firms seem
nonetheless to be accompanied by relatively lower conditional volatility
and lower reaction to extreme shocks with respect to the control sample.
An explanation for these findings, suggested by the inspection of Domini
criteria, is that social responsibility implies, on the one side,
decisions leading to higher cost of labour and of intermediate output, but
may, on the other side, enhance involvement, motivation and identification
of the workforce with company goals with positive effects on productivity.
Journal: Applied Economics
Pages: 541-567
Issue: 5
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500428112
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428112
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Handle: RePEc:taf:applec:v:40:y:2008:i:5:p:541-567
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Vogt
Author-X-Name-First: Michael
Author-X-Name-Last: Vogt
Title: Determinants of the demand for US exports and imports of tourism
Abstract:
This study estimates real income and relative price elasticities of
demand for US exports and imports of tourism with annual data from
1973-2002. Overall, there is empirical support for the model of tourism
expenditure. With one exception, the estimated parameters have the correct
signs, and most are significantly different from zero. The US trading
partners appear to be more sensitive to the determinants of international
tourism than is the US The greater response (of the US trading partners)
to changes in real income may account for the US running surpluses on its
tourism balance during 16 of the 29 years of our sample period.
Journal: Applied Economics
Pages: 667-672
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749698
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749698
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:667-672
Template-Type: ReDIF-Article 1.0
Author-Name: Henry Kinnucan
Author-X-Name-First: Henry
Author-X-Name-Last: Kinnucan
Author-Name: Øystein Myrland
Author-X-Name-First: Øystein
Author-X-Name-Last: Myrland
Title: On generic vs. brand promotion of farm products in foreign markets
Abstract:
Farm groups and their governments spend millions of dollars each year
advertising agricultural products in international markets. Intuitively,
country-of-origin or 'brand' advertising should be more profitable than
generic advertising in that it enhances product differentiation and
reduces free riding. However, unlike generic advertising, brand
advertising decreases the demand for competing imports and lowers their
prices when supplies are upward sloping. In addition to inviting
retaliation, the decline in the prices of competing products erodes the
price of the advertised product through second-round or 'market feedback'
effects. In this study, we develop a generalized model for assessing the
relative effectiveness of generic and brand promotion in the international
market when products are differentiated by source origin and supplies are
uncontrolled. Applying the model to US beef promotion in Japan, we find
that when brand and generic advertising are equally efficient in the sense
that they cause equivalent horizontal shifts in the group and
product-specific demand curves, generic advertising is indeed more
profitable for most of the relevant parameter space. Distributional
analysis suggests that, with equal export supply elasticities, the gross
benefits of generic advertising are distributed across exporters in
proportion to the expenditure elasticities for the products in question.
Journal: Applied Economics
Pages: 673-684
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749664
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749664
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:673-684
Template-Type: ReDIF-Article 1.0
Author-Name: Laurence Cecchini
Author-X-Name-First: Laurence
Author-X-Name-Last: Cecchini
Author-Name: Charles Lai-Tong
Author-X-Name-First: Charles
Author-X-Name-Last: Lai-Tong
Title: The links between openness and productivity in Mediterranean countries
Abstract:
We examine the relation between the international trade, the foreign
direct investment and the total factor productivity of the Mediterranean
partner countries of Europe within the framework of a cointegrated panel
model. The results, obtained from data on seven Mediterranean partner
countries of Europe (Algeria, Egypt, Israel, Jordan, Morocco, Tunisia,
Turkey), show that FDI and human capital are complementary in the
acquisition of productivity gains. We identify the threshold level of
human capital from which the received foreign investments generate
beneficial effects. In a more general way, the improvement of the total
factor productivity via the international openness results only from the
indirect effects related to the transfer of technology.
Journal: Applied Economics
Pages: 685-697
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749771
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749771
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:685-697
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Leybourne
Author-X-Name-First: Steve
Author-X-Name-Last: Leybourne
Author-Name: Tae-Hwan Kim
Author-X-Name-First: Tae-Hwan
Author-X-Name-Last: Kim
Author-Name: Paul Newbold
Author-X-Name-First: Paul
Author-X-Name-Last: Newbold
Title: A more powerful modification of Johansen's cointegration tests
Abstract:
We apply the idea of using reversed time series to improve the power of
Johansen tests. We suggest computationally simple variants of the trace
and maximum eigenvalue statistics and establish their limit distributions.
Both are shown, via simulation, to yield nontrivial power gains.
Journal: Applied Economics
Pages: 725-729
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749714
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749714
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:725-729
Template-Type: ReDIF-Article 1.0
Author-Name: Masoud Moghaddam
Author-X-Name-First: Masoud
Author-X-Name-Last: Moghaddam
Author-Name: Momodou Bah
Author-X-Name-First: Momodou
Author-X-Name-Last: Bah
Title: The money demand function in a small, open and quasi-monetary economy: the Gambia
Abstract:
The open-economy money demand asserts that for its underlying theory to
hold, the variables ought to be co-integrated. Co-integrated variables
although nonstationary in level, can share a long-term trend that is
indeed stationary. However, the open money demand model has mainly been
tested in developed and developing nations. This article investigates the
co-integrated open-economy money demand in the Gambia where the macro
economy is a quasi-monetary system, small (relative to the world market),
but very open with a floating exchange rate regime. In the co-integrated
space, the Gambian money demand appears to be quite responsive to domestic
income, a measure of interest rate and the real exchange rate
fluctuations.
Journal: Applied Economics
Pages: 731-734
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749649
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749649
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:731-734
Template-Type: ReDIF-Article 1.0
Author-Name: Ilkay Sendeniz-Yuncu
Author-X-Name-First: Ilkay
Author-X-Name-Last: Sendeniz-Yuncu
Author-Name: Levent Akdeniz
Author-X-Name-First: Levent
Author-X-Name-Last: Akdeniz
Author-Name: Kursat Aydoğan
Author-X-Name-First: Kursat
Author-X-Name-Last: Aydoğan
Title: Interdependence of the banking sector and the real sector: evidence from OECD countries
Abstract:
This article investigates the validity of the credit view hypothesis in
eleven OECD (Organization for Economic Cooperation and Development)
countries over the period 1987:QI to 2003:QIII. The existence of a
long-run relationship between the banking sector and the real sector is
supported by cointegration test results. For some of the countries in the
sample, Granger causality tests show the leading role of the banking
sector in the real sector, thus supporting the credit view hypothesis,
whereas for other countries, the same tests indicate no interdependence.
Journal: Applied Economics
Pages: 749-764
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600735424
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600735424
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:749-764
Template-Type: ReDIF-Article 1.0
Author-Name: Ebru Guven Solakoglu
Author-X-Name-First: Ebru Guven
Author-X-Name-Last: Solakoglu
Title: The effect of railroads and price responsiveness on acreage decisions in the post-Bellum period
Abstract:
This study analyses the effect of farmers' price responsiveness and
railroad development on acreage decisions in the late 19th century. A
potential simultaneity between these determinants was mentioned in some
earlier studies, but never examined. This study sheds some light on these
relationships by employing a simultaneous equations model. The results
show that acreage, prices and railroad mileage were jointly determined in
the late nineteenth century. Furthermore, farmers were very responsive to
wheat prices in their wheat acreage decisions in the eastern and
northeastern regions when endogeneity effect is considered. In the western
and southern regions, however, farmers were not responsive to wheat prices
in their wheat acreage decisions. On the other hand, they were very
responsive to corn and animal prices in their corn acreage decisions.
Railroads were one important determinant that affected farmers' acreage
decisions positively in every region.
Journal: Applied Economics
Pages: 765-771
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749599
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749599
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:765-771
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer
Author-X-Name-First: Richard
Author-X-Name-Last: Thalheimer
Title: Government restrictions and the demand for casino and parimutuel wagering
Abstract:
Growth in casino wagering in the United States from the mid-1980s forward
has been extraordinary. Over the same period, however, parimutuel wagering
has declined. Concern for this decline has prompted a number of states to
allow parimutuel racetracks to offer casino-type gaming devices at their
facilities. Such operations are commonly referred to as 'racinos'. If the
gaming devices at a racino are under the auspices of a state lottery, they
are referred to as video lottery terminals (VLTs). Separate parimutuel and
VLT wagering demand models were estimated for a racino facility. A number
of restrictions were imposed on the VLT's at the beginning of the study
period including: number of VLT's, type of game and machine, maximum bet
per play and VLT location. The effect of these restrictions on VLT and
parimutuel handles was a major focus of this article. Also of importance
was an examination of the relationship between the VLT and parimutuel
products. Relaxation of government restrictions on the VLT's was found to
have resulted in a large increase in VLT wagering. On the other hand,
parimutuel wagering was found to decrease with the relaxation of
restrictions on the VLT's. The presence and growth of the VLT product was
found to decrease parimutuel handle. The presence and growth of the
parimutuel product was found to increase VLT handle.
Journal: Applied Economics
Pages: 773-791
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749672
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749672
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:773-791
Template-Type: ReDIF-Article 1.0
Author-Name: Sanford Berg
Author-X-Name-First: Sanford
Author-X-Name-Last: Berg
Author-Name: Chen Lin
Author-X-Name-First: Chen
Author-X-Name-Last: Lin
Title: Consistency in performance rankings: the Peru water sector
Abstract:
Regulators can utilize a number of alternative methodologies for
comparing firm efficiency, but these approaches need to be robust to be
accepted by stakeholders. This study evaluates the consistency of
water-utility performance rankings for Peruvian water utilities. The
results indicate that data envelopment analysis (DEA) and stochastic
frontier analysis (SFA) yield similar rankings in this case. In addition,
the techniques have comparable success for identifying the best and worst
performing utilities. However, these rankings based on sophisticated
statistical techniques are not highly correlated with those developed by
the Peruvian water regulator (SUNASS). This result does not invalidate the
performance rankings obtained by the regulator, since those rankings are
based on more dimensions of utility performance. However, they illustrate
the importance of developing sound techniques for identifying weak
utilities. Improvements in sector performance require that benchmarking be
given greater attention than in the past.
Journal: Applied Economics
Pages: 793-805
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749409
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749409
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:793-805
Template-Type: ReDIF-Article 1.0
Author-Name: Macarena Lozano
Author-X-Name-First: Macarena
Author-X-Name-Last: Lozano
Author-Name: Pilar Moreno
Author-X-Name-First: Pilar
Author-X-Name-Last: Moreno
Title: A discrete time single-server queue with balking: economic applications
Abstract:
This article studies a discrete time single-server queue with finite and
infinite buffer where the users have the option to leave the queue upon
arrival (balking). We consider two variants of the model in accordance
with the balking policies. Firstly, all the arriving customers balk with a
constant probability. Secondly, arriving customers increase their balking
probabilities as more customers join the system. Specifically, we find the
ergodicity condition and closed-form expressions for the stationary
distribution of the system size, of the waiting/spending time in the FCFS
system and of the unfinished work. The mathematical model is applied in
order to resolve several real-life problems in the economic field; in this
sense, practical applications in the secondary and tertiary sector are
shown. We also develop a cost model to determine the buffer capacity that
minimizes certain cost function and give some numerical examples.
Journal: Applied Economics
Pages: 735-748
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749607
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749607
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:735-748
Template-Type: ReDIF-Article 1.0
Author-Name: Dan Friesner
Author-X-Name-First: Dan
Author-X-Name-Last: Friesner
Author-Name: Robert Roseman
Author-X-Name-First: Robert
Author-X-Name-Last: Roseman
Author-Name: Matthew McPherson
Author-X-Name-First: Matthew
Author-X-Name-Last: McPherson
Title: Are hospitals seasonally inefficient? Evidence from Washington State
Abstract:
Efficiency measurement has been one of the most extensively explored
areas of health services research over the past two decades. Despite this
attention, few studies have examined whether a provider's efficiency
varies on a monthly, quarterly or other, sub-annual basis. This article
presents an empirical study that looks for evidence of seasonal
inefficiency. Using a quarterly panel of general, acute-care hospitals
from Washington State, we find that hospital efficiency does vary over
time; however, the nature of this dynamic inefficiency depends on the type
of efficiency being measured. Our results suggest that technical and cost
efficiency vary by quarter. Allocative and scale efficiency also vary on a
quarterly basis, but only if the data are jointly disaggregated by quarter
and another, firm-specific factor such as size or operating status. Thus,
future research, corporate decisions and government policies designed to
improve the efficiency of hospital care need to account for seasonal
trends in hospital efficiency.
Journal: Applied Economics
Pages: 699-723
Issue: 6
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749730
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749730
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:6:p:699-723
Template-Type: ReDIF-Article 1.0
Author-Name: James Payne
Author-X-Name-First: James
Author-X-Name-Last: Payne
Author-Name: Hassan Mohammadi
Author-X-Name-First: Hassan
Author-X-Name-Last: Mohammadi
Author-Name: Murat Cak
Author-X-Name-First: Murat
Author-X-Name-Last: Cak
Title: Turkish budget deficit sustainability and the revenue-expenditure nexus
Abstract:
The sustainability of the Turkish budget deficits as well as the dynamics
of government revenues and expenditures in controlling the size of the
deficit is examined using annual data from 1968 to 2004. The findings
support the existence of a long-run relation between government revenues
and expenditures once allowance is made for an unknown structural break.
However, the size of the slope parameter is significantly less than one,
suggesting that the government might face difficulties in financing its
future debt. With respect to the revenue-expenditure nexus, the empirical
evidence is favourable to the tax-spend hypothesis through the error
correction term in the expenditures equation. Finally, there is no
evidence of asymmetries in the adjustment process in either the threshhold
autoregressive or momentum threshold autoregressive specifications of the
budgetary adjustment process.
Journal: Applied Economics
Pages: 823-830
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749904
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749904
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:823-830
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow
Author-X-Name-First: Michael
Author-X-Name-Last: Marlow
Title: Determinants of state tobacco-control expenditures
Abstract:
While Centers for Disease Control and Prevention believe that most state
governments under-fund tobacco-control programs, little is known about why
large variation in spending exists between state governments. This study
explores reasons for spending variation through an econometric model of
per capita spending on tobacco-control programs that explores the effects
of smoking prevalence while holding constant tobacco settlement funds,
state budget deficits, and other factors that might also be expected to
influence spending variation. Empirical evidence indicates no support for
the hypothesis that states with high smoking prevalence spend more on
tobacco-control than other states. This finding may be quite surprising to
those working in areas of public health and clearly leads to many
important policy questions regarding why the data indicate that funding
does not appear to bear any relation to perceived public health problems
as would be predicted if policymakers were following a 'rational needs'
approach to funding.
Journal: Applied Economics
Pages: 831-839
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771098
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771098
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:831-839
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Cosme Costa Vieira
Author-X-Name-First: Pedro Cosme Costa
Author-X-Name-Last: Vieira
Title: An economics journals' ranking that takes into account the number of pages and co-authors
Abstract:
In this article, I examine whether the academics reward policy must
correlate positively with the published number of articles per co-author,
number of pages and journals reputation. This is accomplished by
estimating a nonlinear model with a panel data from 168 economics journals
covered in the ISI-Web of Knowledge database (58 825 articles). The data
reinforces the conjecture that published article value is slightly
increasing with the number of co-authors and is proportional to the number
of pages. The data also suggests that there are four distinct groups
related to journal quality that I name A, B+, B and B-.
Journal: Applied Economics
Pages: 853-861
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749755
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749755
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:853-861
Template-Type: ReDIF-Article 1.0
Author-Name: Ho Jin Lee
Author-X-Name-First: Ho Jin
Author-X-Name-Last: Lee
Author-Name: Akinori Tomohara
Author-X-Name-First: Akinori
Author-X-Name-Last: Tomohara
Title: Public health insurance expansions and labour supply of married women: the state children's health insurance programme
Abstract:
While the relationships between health insurance and the labour supply of
women have been explored in the literature, little is known about the
effects of offering public health insurance on the labour supply decisions
of married women. This article examines the labour supply decisions of
married women using the State Children's Health Insurance Programme. Our
empirical analysis implies that certain groups of married women may be
leaving the labour force in order to provide public health insurance for
their children. We conclude that the programme causes unexpected
efficiency losses through distorted labour supply decisions.
Journal: Applied Economics
Pages: 863-874
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749789
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749789
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:863-874
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Differentiating between business cycles and growth cycles: evidence from 15 developed countries
Abstract:
Growth cycles are often mistaken for business cycles, although these two
have different statistical properties. In order to differentiate between
them in a statistically satisfactory manner, the Bayesian information
criterion-(BIC) based model-selection approach is presented. Business
cycles are described by the cyclical trend model, and growth cycles are
described by the trend-plus-cycle model. Whether the observed time series
is derived from business cycles or from growth cycles is determined as a
result of model selection. It is shown via data-based simulations that the
proposed method works well in most situations. Empirical results obtained
for 15 countries suggest that the business cycle model is selected for
five countries, the growth cycle model is selected for two countries and
the trend-plus-noise model is selected for eight countries.
Journal: Applied Economics
Pages: 875-883
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749862
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749862
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:875-883
Template-Type: ReDIF-Article 1.0
Author-Name: Niko Gobbin
Author-X-Name-First: Niko
Author-X-Name-Last: Gobbin
Author-Name: Glenn Rayp
Author-X-Name-First: Glenn
Author-X-Name-Last: Rayp
Title: Different ways of looking at old issues: a time-series approach to inequality and growth
Abstract:
In this article we propose an econometric approach that steers clear of
parameter heterogeneity, omitted variable bias and endogeneity problems,
from which suffers the econometric analysis of economic growth. We propose
to investigate the relation between income inequality and economic growth
in a cointegrated VAR setting and present an application to Belgium, US
and Finland.
Journal: Applied Economics
Pages: 885-895
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771106
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771106
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:885-895
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Revisiting the US money demand function: an application of the Lagrange multiplier structural break unit root test and the bounds test for a long-run relationship
Abstract:
In this article, we examine the issue of a levels relationship and
stability of the US money demand function over the period 1959:01 to
2004:02. We use the Lagrange multiplier structural break unit root test
and the bounds testing approach to a long-run relationship in levels of
the variables, namely real money demand, nominal interest rate and real
income. We find greater evidence for a long-run relationship in levels and
stability of the US money demand function when we use M2 as a proxy for
money demand. However, we find little evidence for a long-run relationship
between M1 and M2 with their determinants for the recent period, spanning
the last decade or so.
Journal: Applied Economics
Pages: 897-904
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749813
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:897-904
Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Lin Tao
Author-X-Name-First: Hung-Lin
Author-X-Name-Last: Tao
Title: What makes devout Christians happier? Evidence from Taiwan
Abstract:
This study divides the effects of religious involvement on subjective
well being (SWB) into direct and indirect channels. The indirect channels
mean that, by improving its adherents' present lives, religion enhances
their happiness. It is found that devout Christians enhance their SWB by
means of one direct channel and three indirect channels; these indirect
channels being high health expectations, good family relationship
expectations and sound social networks. A good family relationship
expectation is found to be the most important factor among the indirect
channels. Devout Christians are happier than their counterparts based on a
probability of 28, 55, and 45% of the 28% are accounted for by the direct
channel and the three indirect channels, respectively.
Journal: Applied Economics
Pages: 905-919
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749839
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749839
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:905-919
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Nihat Solakoglu
Author-X-Name-First: Mehmet Nihat
Author-X-Name-Last: Solakoglu
Author-Name: Ebru Guven Solakoglu
Author-X-Name-First: Ebru Guven
Author-X-Name-Last: Solakoglu
Author-Name: Tunc Demirağ
Author-X-Name-First: Tunc
Author-X-Name-Last: Demirağ
Title: Exchange rate volatility and exports: a firm-level analysis
Abstract:
The relationship between real exports and exchange rate volatility is
investigated using panel data analysis at the firm level. Results indicate
that there is no negative or positive relationship between volatility and
real exports. In addition, firm size and level of international activity
do not influence the size and significance of the volatility effect on
exports. However, there is some evidence that firms use import revenue to
lower their exchange rate exposure.
Journal: Applied Economics
Pages: 921-929
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749888
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749888
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:921-929
Template-Type: ReDIF-Article 1.0
Author-Name: Jaoaqin Alegre
Author-X-Name-First: Jaoaqin
Author-X-Name-Last: Alegre
Author-Name: Llorenc Pou
Author-X-Name-First: Llorenc
Author-X-Name-Last: Pou
Title: Further evidence of excess sensitivity of consumption? Nonseparability among goods and heterogeneity across households
Abstract:
The standard theoretical framework for analysing households'
intertemporal decisions is the life-cycle/permanent income model. Among
its implications, testing the model allows to analyse the response of
consumption to fiscal policy. However, the empirical literature with
microdata has yielded mixed results. This article examines the sensitivity
of the results to the assumption of separability among goods and of
homogeneity across households. For that purpose, we test a rational
expectations permanent income model with household data drawn from the
Spanish Family Expenditure Survey. This survey contains detailed
information on total expenditure and the income presents large, exogenous
quarterly changes due to an institutional feature. The article shows that
assuming separability among commodities biases the test against the model.
When separability is not imposed, we show that the rejection of the model
depends on heterogeneity across households in terms of their members being
unemployed or not. For those households permanently employed, the model
cannot be rejected whatever their income status.
Journal: Applied Economics
Pages: 931-948
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749896
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749896
File-Format: text/html
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:931-948
Template-Type: ReDIF-Article 1.0
Author-Name: Euston Quah
Author-X-Name-First: Euston
Author-X-Name-Last: Quah
Author-Name: Jongsay Yong
Author-X-Name-First: Jongsay
Author-X-Name-Last: Yong
Title: An assessment of four popular auction mechanisms in the siting of NIMBY facilities: some experimental evidence
Abstract:
The issue of locating locally unfriendly but socially beneficial
facilities such as landfills and power stations is an important public
policy concern in many countries. Local residents in the area where such
facilities are to be located tend to exhibit strong opposition, no doubt
due to the asymmetric distribution of the costs and benefits of such
not-in-my-backyard (NIMBY) facilities. A potentially useful mechanism for
the siting of such facilities is by compensation auctions, which attempt
to incorporate the market mechanism into the decision making process. In
such auctions, communities name the compensation they require to host such
facilities, and the community demanding the least amount of compensation
gets to host the facility. This research attempts to evaluate the
performance of such compensation auctions using laboratory exepriments.
Four popular auction formats are evaluated: first- and second-price and
all-pay first-and second-price sealed-bid auctions. The latter two formats
correspond to the compensation auctions with penalty payments proposed by
Kunreuther and Kleindorfer (1986) and Quah and Tan (1998), who claim that
these auctions are more efficient as they restrains strategic (or over)
bidding. Our results, however, contradict this claim. We show that the
first-and second-price auctions without penalty payments are in fact more
efficient, in that they tend to minimize social costs, and truthful
bidding is more likely.
Journal: Applied Economics
Pages: 841-852
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600758509
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600758509
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:841-852
Template-Type: ReDIF-Article 1.0
Author-Name: Barıs Yoruk
Author-X-Name-First: Barıs
Author-X-Name-Last: Yoruk
Author-Name: Osnman Zaim
Author-X-Name-First: Osnman
Author-X-Name-Last: Zaim
Title: International regulations and environmental performance
Abstract:
This article employs the data envelopment analysis (DEA) approach to
compute the environmental performance of all but two Organisation for
Economic Co-operation and Development (OECD) countries. It is found that
although the environmental performance of countries differs over time,
Poland and Hungary are the two best performers for all periods while
Italy, Japan, Austria and Switzerland are ranked among the worst. The
effect of international regulations and some observed characteristics of
countries on environmental performance are also investigated.
International regulations are reported to have a positive effect on
environmental performance.
Journal: Applied Economics
Pages: 807-822
Issue: 7
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749821
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749821
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Handle: RePEc:taf:applec:v:40:y:2008:i:7:p:807-822
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Yao Tseng
Author-X-Name-First: Chun-Yao
Author-X-Name-Last: Tseng
Title: Internal R&D effort, external imported technology and economic value added: empirical study of Taiwan's electronic industry
Abstract:
Technology innovation is a significant resource in the contemporary
knowledge-based economy. The main sources of technology innovation are
internal R&D effort and external imported technology. Two primary
traditional production factors are physical capital and labour. The
theoretical basis for this study is an evolutionary Cobb-Douglas
production function explaining the effects of four resources (internal R&D
effort, imported technology, physical capital and labour) on a firm's
sales and economic value added (EVA). Time-series cross-section panel data
from 219 Taiwan electronic manufacturers between 1990 and 2003 were
employed for fixed effect model. Major empirical findings were observed in
this study: first, Internal R&D effort can positively affect a firm's
sales and EVA. Conversely, imported technology is found to have had no
significant effect on sales and EVA. Second, although both physical
capital and labour affect a firm's sales more than the effects of internal
R&D and external imported technology, internal R&D effort contributes to a
firm's EVA beyond the effects of imported technology, physical capital and
labour. Third, External imported technology has neither a complementary
nor a substitutive relationship with internal R&D effort.
Journal: Applied Economics
Pages: 1073-1082
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771163
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771163
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1073-1082
Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Sgherri
Author-X-Name-First: Silvia
Author-X-Name-Last: Sgherri
Title: Explicit and implicit targets in open economies
Abstract:
Under a flexible inflation targeting regime, should policymakers avoid
any reaction to movements in the foreign exchange market? Using data for
six advanced open economies explicitly targeting inflation, this article
examines empirically whether real exchange rate disequilibria
systematically affect the conduct of monetary policy. Estimates indicate
that monetary policy responses in inflation-targeting, open economies have
changed significantly, as the institutional framework for the conduct of
monetary policy has evolved. In particular, an explicit target for core
inflation and a greater use of the expectation channel of monetary policy
appear to be the key features of the newest policy framework. In this
context, central banks are unlikely to react to regular fluctuations in
the exchange rate.
Journal: Applied Economics
Pages: 969-980
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749912
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749912
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:969-980
Template-Type: ReDIF-Article 1.0
Author-Name: Javier Alonso
Author-X-Name-First: Javier
Author-X-Name-Last: Alonso
Author-Name: Simon Sosvilla-Rivero
Author-X-Name-First: Simon
Author-X-Name-Last: Sosvilla-Rivero
Title: Human capital in Spain: an estimate of educational attainment
Abstract:
In this article an alternative methodology is proposed for obtaining long
time-series data for a human capital indicator based on the average number
of years of education of the working-age population. In contrast to
previous studies, we use Labour Force Survey microdata relating to the
level of education actually completed, in order to construct temporal
profiles of educational attainment and thus avoid the need to interpolate
from censuses. To illustrate the method proposed, we evaluate the average
number of years of education of the Spanish working-age population for the
period 1910 to 2000.
Journal: Applied Economics
Pages: 1005-1013
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771171
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771171
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1005-1013
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Drakos
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Drakos
Title: Efficiency and formation of expectations: evidence from the European investment survey
Abstract:
The European Commission conducts an annual survey regarding planned and
realized business fixed investment across various manufacturing sectors in
Euroland. In this study we investigate the predictive content of
survey-based expectations on investment. In addition, we empirically test
the rationality of respondents both in a time series as well as in a panel
context. According to our results, based on pooling the data, efficiency
is rejected since expectations are biased predictors of actual outcomes.
Furthermore, expectations revisions are found to be correlated with
components of the information set known at the time of decision making.
Finally, our results qualify regressive expectations as the mechanism that
more adequately describes the formation of expectations.
Journal: Applied Economics
Pages: 1015-1022
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771189
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771189
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1015-1022
Template-Type: ReDIF-Article 1.0
Author-Name: Kyprianos Prodromidis
Author-X-Name-First: Kyprianos
Author-X-Name-Last: Prodromidis
Author-Name: Prodromos Prodromidis
Author-X-Name-First: Prodromos
Author-X-Name-Last: Prodromidis
Title: Returns to education: the Greek experience, 1988-1999
Abstract:
This article provides estimates of private rates of return to education
in Greece derived from Mincerian-type earnings equations. The data come
from the latest three household surveys of the country covering the 1988
to 1999 period. The empirical evidence suggests that: rates of return
associated with female high school and university graduates exceed the
respective rates for male graduates; rates of return pertaining to
tertiary education graduates are increasing over time, whereas the
corresponding rates for secondary education graduates follow an inverted
U-shaped pattern and dropouts from any education degree end up with rates
of return lower than the rates associated with the immediately preceding
education level.
Journal: Applied Economics
Pages: 1023-1030
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771197
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771197
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1023-1030
Template-Type: ReDIF-Article 1.0
Author-Name: Jung Hur
Author-X-Name-First: Jung
Author-X-Name-Last: Hur
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Joseph Alba
Author-X-Name-First: Joseph
Author-X-Name-Last: Alba
Title: Economic geography in the presence of preferential trade agreements: an empirical analysis of OECD data
Abstract:
In the presence of preferential trade agreements (PTAs), there are two
distinct levels of economic geography-global economic geography (GEG)
between a PTA bloc and the world and local economic geography (LEG)
between a PTA member and its PTA bloc. Using OECD data, we empirically
examine whether both types of economic geography can help to explain the
international production structure. Our findings provide some support for
the importance of distinguishing between LEG and GEG when testing for the
presence of economic geography.
Journal: Applied Economics
Pages: 1031-1041
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771213
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771213
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1031-1041
Template-Type: ReDIF-Article 1.0
Author-Name: En-Ai Liao
Author-X-Name-First: En-Ai
Author-X-Name-Last: Liao
Author-Name: Chia-Hung Teng
Author-X-Name-First: Chia-Hung
Author-X-Name-Last: Teng
Title: The effects of monetary policy: a DSGE model analysis of Taiwan
Abstract:
This article attempts to use empirical data to analyse the impact of
monetary policy in a dynamic stochastic general equilibrium model.
According to the monetary policy decisions of the Central Bank of China
(Taiwan), maintaining price, financial stability and fostering economic
growth are the ultimate goals of monetary policy during the empirical
period. First, this article uses the cointegration tests to determine the
operating targets, the intermediate targets and the ultimate goals of
monetary policy. Then, a forward-looking aggregate demand-aggregate supply
model for a small open economy is specified, and policy discretion is
included in this model. Finally, the model is estimated by a linear state
space model and is used to analyse the short-run effects of a systematic
monetary change.
Journal: Applied Economics
Pages: 1043-1051
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771130
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771130
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1043-1051
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Biman Chand Prasad
Author-X-Name-First: Biman Chand
Author-X-Name-Last: Prasad
Title: Are shocks to real effective exchange rates permanent or transitory? Evidence from Pacific Island countries
Abstract:
In this article, we consider the stability of the real effective exchange
rates for four Pacific Island countries using the Lee and Strazicich
(2003a, b) unit root test, which allows one to incorporate at most two
structural breaks in the data series. Our main finding is that for Papua
New Guinea and Samoa, exchange rates are stable, implying that shocks will
have a transitory effect on real effective exchange rates, while for Fiji
and the Solomon Islands we find exchange rates to be unstable, implying
that shocks will have a permanent effect on real effective exchange rates.
Journal: Applied Economics
Pages: 1053-1060
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771122
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771122
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:1053-1060
Template-Type: ReDIF-Article 1.0
Author-Name: Daisuke Tsuruta
Author-X-Name-First: Daisuke
Author-X-Name-Last: Tsuruta
Title: Bank information monopoly and trade credit: do only banks have information about small businesses?
Abstract:
According to previous studies, a bank can set a higher interest rate for
small firms by establishing a lending relationship since information
asymmetry limits competition between banks. Therefore, the bank can
acquire monopoly rent from small firms. However, if small firms can use
trade credit which is another financial source, the bank cannot extract
monopoly rent. In this article, we examine whether small firms can use
trade credit if the bank sets a higher interest rate. Using panel data of
small firms in Japan, our analysis shows that when the interest rate the
bank sets is too severe or worsened for the borrower, the ratio of trade
payables increases and the bank loses its amount of loans. This result
implies that trade creditors alleviate the problems of bank information
monopolies in Japan.
Journal: Applied Economics
Pages: 981-996
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771155
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771155
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:981-996
Template-Type: ReDIF-Article 1.0
Author-Name: Satoru Shimokawa
Author-X-Name-First: Satoru
Author-X-Name-Last: Shimokawa
Title: The labour market impact of body weight in China: a semiparametric analysis
Abstract:
While a positive wage effect of Body Mass Index (BMI) is widely observed
in low-income developing countries, a negative wage effect of BMI is often
observed in high-income developed countries. To fill the gap between these
previous findings, we investigate the relationship between body weight and
wages in transition economies. We focus on China, whose rapid economic
growth of the 1990s was followed by a rapid increase in overweight and
obesity while still experiencing significant food insecurity and
underweight. we first use several parametric regression strategies to
obtain a consistent estimate of the wage effects of weight. Second, we
adopt a semiparametric partially linear model that allows for endogeneity
of weight. Parametric regressions provide mixed results, and the sign and
magnitude of their estimates are sensitive to the choice of samples and
regression strategies. Semiparametric estimates provide evidence of a wage
penalty for very heavy and thin persons among both men and women. The wage
penalty is more significant among men than among women. Semiparametric
results also indicate that parametric estimates can overstate and
misrepresent the wage effects of weight for healthy weight persons due to
their restrictive functional form assumptions.
Journal: Applied Economics
Pages: 949-968
Issue: 8
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771239
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771239
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Handle: RePEc:taf:applec:v:40:y:2008:i:8:p:949-968
Template-Type: ReDIF-Article 1.0
Author-Name: Jagadanand Chaudhary
Author-X-Name-First: Jagadanand
Author-X-Name-Last: Chaudhary
Author-Name: Samarendu Mohanty
Author-X-Name-First: Samarendu
Author-X-Name-Last: Mohanty
Author-Name: Sukant Misra
Author-X-Name-First: Sukant
Author-X-Name-Last: Misra
Author-Name: Suwen Pan
Author-X-Name-First: Suwen
Author-X-Name-Last: Pan
Title: The effects of MFA quota elimination on Indian fibre markets
Abstract:
This article examines the effects of multi-fibre arrangement (MFA) quota
elimination on Indian fibre market. The partial equilibrium Indian fibre
model was developed using a theoretically consistent framework and
incorporated regional supply response, substitutability between cotton and
man-made fibres, and appropriate linkage between cotton and textile
sectors. Baseline projections were developed for supply, demand and prices
of cotton, man-made fibres and textiles under a set of exogenous
assumptions. The effects of MFA textile quota eliminations were introduced
into the model by conducting three scenarios, i.e. increasing textile
exports by 10, 20 and 30% from the baseline level. The results suggest
that on an average, cotton imports rise by 4-8% annually, while the
man-made fibre exports from India decline with the opening of textile
markets in the developed countries. The higher domestic cotton prices
encourage acreage expansion in cotton in all the three regions in India,
but not enough to meet rising mill demand under the scenarios of higher
textile exports. The rise in cotton imports from India has little effect
on world cotton prices.
Journal: Applied Economics
Pages: 1083-1099
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771205
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771205
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1083-1099
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Caliendo
Author-X-Name-First: Marco
Author-X-Name-Last: Caliendo
Author-Name: Reinhard Hujer
Author-X-Name-First: Reinhard
Author-X-Name-Last: Hujer
Author-Name: Stephan Thomsen
Author-X-Name-First: Stephan
Author-X-Name-Last: Thomsen
Title: Identifying effect heterogeneity to improve the efficiency of job creation schemes in Germany
Abstract:
Previous empirical studies of job creation schemes (JCS) in Germany have
shown that the average effects for the participating individuals are
negative. However, we find that this is not true for all strata of the
population. Identifying individual characteristics that are responsible
for the effect heterogeneity and using this information for a better
allocation of individuals therefore bears some scope for improving
programme efficiency. We present several stratification strategies and
discuss the occurring effect heterogeneity. Our findings show that JCS do
neither harm nor improve the labour market chances for most of the groups.
Exceptions are long-term unemployed men in West and long-term unemployed
women in East and West Germany who benefit from participation in terms of
higher employment rates.
Journal: Applied Economics
Pages: 1101-1122
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840500438897
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438897
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1101-1122
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Fleming
Author-X-Name-First: Christopher
Author-X-Name-Last: Fleming
Author-Name: Parvinder Kler
Author-X-Name-First: Parvinder
Author-X-Name-Last: Kler
Title: I'm too clever for this job: a bivariate probit analysis on overeducation and job satisfaction in Australia
Abstract:
Using data from the first wave of the Household, Income and Labour
Dynamics in Australia data set, this article establishes an empirical
relationship between overeducation and workplace satisfaction for
Australian adult males in the labour force. In a departure from much of
the existing literature, both univariate and bivariate probit models are
used to account for potential unobserved heterogeneity. We find that
estimates in the univariate probit models are positively biased for three
of the six measures of workplace satisfaction studied. This suggests that
consideration should be given to the use of bivariate models when studying
the determinants of workplace satisfaction and overeducation. Results
show, although levels of satisfaction remain high, that across all
measures of workplace satisfaction overeducated workers are less satisfied
compared to their nonovereducated counterparts. This intimates that
satisfaction levels should be viewed from a relative, rather than an
absolute perspective. 'Pleasure in the job puts perfection in the work'
Aristotle 384BC-322BC
Journal: Applied Economics
Pages: 1123-1138
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771254
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771254
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1123-1138
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Schunk
Author-X-Name-First: Donald
Author-X-Name-Last: Schunk
Title: Probability predictions of rising real GDP growth and inflation: the usefulness of monetary indicators
Abstract:
Several recent studies have focused on the predictive power of the yield
spread for future economic activity. The current paper reformulates the
work of Estrella and Mishkin (1998) by focusing on the usefulness of
monetary variables for generating probability predictions of rising or
falling real GDP growth and inflation. Besides redefining the dependent
variables, the independent monetary variables are allowed to include
lagged information. Also, the current paper considers the usefulness of
the Divisia monetary aggregates in the context of probit models for
predicting the probability that real GDP growth or inflation will be
increasing
Journal: Applied Economics
Pages: 1139-1149
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771247
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771247
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1139-1149
Template-Type: ReDIF-Article 1.0
Author-Name: Vitor Ozaki
Author-X-Name-First: Vitor
Author-X-Name-Last: Ozaki
Author-Name: Barry Goodwin
Author-X-Name-First: Barry
Author-X-Name-Last: Goodwin
Author-Name: Ricardo Shirota
Author-X-Name-First: Ricardo
Author-X-Name-Last: Shirota
Title: Parametric and nonparametric statistical modelling of crop yield: implications for pricing crop insurance contracts
Abstract:
This article considers alternative methods to calculate the fair premium
rate of crop insurance contracts based on county yields. The premium rate
was calculated using parametric and nonparametric approaches to estimate
the conditional agricultural yield density. These methods were applied to
a data set of county yield provided by the Statistical and Geography
Brazilian Institute (IBGE), for the period of 1990 through 2002, for
soybean, corn and wheat, in the State of Parana. In this article, we
propose methodological alternatives to pricing crop insurance contracts
resulting in more accurate premium rates in a situation of limited data.
Journal: Applied Economics
Pages: 1151-1164
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749680
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749680
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1151-1164
Template-Type: ReDIF-Article 1.0
Author-Name: Tam Bang Vu
Author-X-Name-First: Tam Bang
Author-X-Name-Last: Vu
Title: Foreign direct investment and endogenous growth in Vietnam
Abstract:
Foregin Direct Investment's (FDI's) contribution to growth has been a
controversial topic in economic literature and appears to be country
specific. In this article, we use time-varying coefficients in an
augmented production function and let FDI indirectly affect Gross domestic
product growth through labour productivity. This approach creates built-in
heteroskedasticity, so the feasible generalized least square estimation is
employed. The results show that FDI has significant and positive effect on
labour productivity and economic growth in Vietnam, but the effect is not
equally distributed among economic sectors.
Journal: Applied Economics
Pages: 1165-1173
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600749433
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600749433
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1165-1173
Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Kuang Ho
Author-X-Name-First: Tai-Kuang
Author-X-Name-Last: Ho
Title: Extremal analysis of currency crises in Taiwan
Abstract:
We employ extreme value theory to identify currency crises in Taiwan. The
new approach is able to identify severe currency crises, and at the same
time avoid the crisis-misclassification problem of Markov-switching
models. Signal accounting indicates that currency crises in Taiwan are
preceded by rapid expansion of domestic credit and other monetary
aggregates, implying that financial excesses stressed by the
third-generation crisis model are the main causes of these currency
crises.
Journal: Applied Economics
Pages: 1175-1186
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771221
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771221
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1175-1186
Template-Type: ReDIF-Article 1.0
Author-Name: Cho-Min Lin
Author-X-Name-First: Cho-Min
Author-X-Name-Last: Lin
Author-Name: Wan-Hsiu Cheng
Author-X-Name-First: Wan-Hsiu
Author-X-Name-Last: Cheng
Title: Economic determinants of comovement across international stock markets: the example of Taiwan and its key trading partners
Abstract:
This study uses the multinomial logit model in which comovements are
categorized into three outcomes, namely (i) negative comovements, (ii)
positive comovements and (iii) no comovements, with the purpose of the
empirical analysis being to investigate the economic determinants that
affect the comovement relationships in the stock markets for Taiwan and
four major trading partners (Mainland China, United States, Japan and Hong
Kong) using daily data covering the period from 1994 to 2004. The period
under study is further divided into three sub-periods, i.e. the period
before the Asian financial crisis, that during the Asian financial crisis
and that after the Asian financial crisis, in order to determine whether
the factors influencing the comovements in the stock market returns of
Taiwan and its trading partners actually change over time. In addition,
this study differs from earlier studies that only emphasized the analysis
of statistical significance in that it attaches importanace to analysing
both the statistical and economic significance of the factors affecting
comovements. The empirical results indicate that, regardless of whether it
is the period during or after the financial crisis that is being
considered, the volatility of stock market returns and the rate of change
in the exchange rate are both important factors that affect comovement. In
addition, interest rate differentials play an increasingly important role
in the period after the financial crisis.
Journal: Applied Economics
Pages: 1187-1205
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771262
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771262
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1187-1205
Template-Type: ReDIF-Article 1.0
Author-Name: Luiz Lima
Author-X-Name-First: Luiz
Author-X-Name-Last: Lima
Author-Name: Jaime de Jesus Filho
Author-X-Name-First: Jaime de
Author-X-Name-Last: Jesus Filho
Title: Further investigation of the uncertain trend in US GDP
Abstract:
The presence of deterministic or stochastic trend in US GDP has been a
continuing debate in the literature of macroeconomics. Ben-David and
Papell (1995) found evidence in favour of trend stationarity using the
secular sample of Maddison (1991). More recently, Murray and Nelson (2000)
correctly criticized this finding arguing that the Maddision data are
plagued with additive outliers (AO), which bias inference towards
stationarity. Hence, they propose to set the secular sample aside and
conduct inference using a more homogeneous but shorter time-span post-WWII
sample. In this article we re-visit the Maddison data by employing a test
that is robust against AO's. Our results suggest the US GDP can be
modelled as trend stationary process
Journal: Applied Economics
Pages: 1207-1216
Issue: 9
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771270
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771270
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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1207-1216
Template-Type: ReDIF-Article 1.0
Author-Name: James Kung
Author-X-Name-First: James
Author-X-Name-Last: Kung
Title: Dynamic strategies for fixed-income investment
Abstract:
The last 30 years have witnessed an enormous growth in fixed-income
markets. How long-term fixed-income strategies should be implemented for
the welfare of investors has become a major concern of bond managers. This
study makes use of stochastic optimal control to formulate a multi-period
portfolio selection model and implements it using backward recursion
algorithm to find numerically the optimal allocation of wealth between
long- and short-term bonds for an investor with power utility and an
investment horizon of 10 years. By way of a technical manipulation, this
study uses the fact that the long rate and the spread (difference between
long rate and short rate) are uncorrelated to simplify model formulation
and parameter estimation. The results show that an investor would increase
his/her holding of short-term bond if his/her investment horizon becomes
shorter or if he/she is more risk averse, or both.
Journal: Applied Economics
Pages: 1341-1354
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771304
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771304
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1341-1354
Template-Type: ReDIF-Article 1.0
Author-Name: Junyi Shen
Author-X-Name-First: Junyi
Author-X-Name-Last: Shen
Author-Name: Yusuke Sakata
Author-X-Name-First: Yusuke
Author-X-Name-Last: Sakata
Author-Name: Yoshizo Hashimoto
Author-X-Name-First: Yoshizo
Author-X-Name-Last: Hashimoto
Title: Is individual environmental consciousness one of the determinants in transport mode choice?
Abstract:
This article models negative impact on the environment as one of the
attributes of transport mode. By this modelling, we are able to examine
whether individual environmental consciousness of this impact plays a
significant role in his/her choice of transport mode. A survey data from
Saito and Onohara Area in Northern Osaka of Japan is used to estimate the
model with the Heteroscedastic Extreme Value specification. Both of the
estimated and simulated results imply that individual environmental
consciousness does influence his/her decision on transport mode choice in
the sample. Furthermore, the likelihood ratio tests indicate that both the
utility and scale parameters are not equivalent across sub-samples of
university commuters, research-facility commuters and residents. The
results of the comparison across sub-samples suggest that sometimes we may
learn more from sub-dividing a whole sample into several sub-samples if we
could distinguish them by their characteristics.
Journal: Applied Economics
Pages: 1229-1239
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771296
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771296
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1229-1239
Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Mishra
Author-X-Name-First: Ashok
Author-X-Name-Last: Mishra
Author-Name: Charles Moss
Author-X-Name-First: Charles
Author-X-Name-Last: Moss
Title: Measurement of inequality by components of farm household consumption expenditures
Abstract:
Inequality in consumption levels of families, both nationally and
internationally has been studied by Theil. However, empirical studies that
measure inequality in farm household consumption, to our knowledge, have
not been performed. This study measures inequality in farm household
consumption. In addition, the study also measures inequality in
consumption based on farm typology and farming region. Results from this
analysis show consumption inequality among farm households is lower than
consumption inequality among all other households. Results indicate that
'other expenditures' component has the highest inequality and 'food and
household supplies' component has the lowest inequality. Further, farm
typology has information about difference in consumption expenditures; the
typology is informative when it comes to the components of consumption
while the regional decomposition is not.
Journal: Applied Economics
Pages: 1241-1252
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600722240
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600722240
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1241-1252
Template-Type: ReDIF-Article 1.0
Author-Name: V. Eldon Ball
Author-X-Name-First: V. Eldon
Author-X-Name-Last: Ball
Author-Name: W. A. Lindamood
Author-X-Name-First: W. A.
Author-X-Name-Last: Lindamood
Author-Name: Richard Nehring
Author-X-Name-First: Richard
Author-X-Name-Last: Nehring
Author-Name: Carlos San Juan Mesonada
Author-X-Name-First: Carlos San Juan
Author-X-Name-Last: Mesonada
Title: Capital as a factor of production in OECD agriculture: measurement and data
Abstract:
This article provides a farm sector comparison of levels of capital input
for fourteen OECD countries for the period 1973 to 2002. The starting
point for construction of a measure of capital input is the measurement of
capital stock. Estimates of depreciable capital are derived by
representing capital stock at each point of time as a weighted sum of past
investments. The weights correspond to the relative efficiencies of
capital goods of different ages, so that the weighted components of
capital stock have the same efficiency. Estimates of the stock of land are
derived from balance sheet data. We convert estimates of capital stock
into estimates of capital service flows by means of capital rental prices.
Comparisons of levels of capital input among countries require data on
relative prices of capital input. We obtain relative price levels for
capital input via relative investment goods prices, taking into account
the flow of capital input per unit of capital stock in each country.
Journal: Applied Economics
Pages: 1253-1277
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771320
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771320
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1253-1277
Template-Type: ReDIF-Article 1.0
Author-Name: Joaquin Azagra-Caro
Author-X-Name-First: Joaquin
Author-X-Name-Last: Azagra-Caro
Author-Name: Juana Aznar-Marqez
Author-X-Name-First: Juana
Author-X-Name-Last: Aznar-Marqez
Author-Name: Juan Blanco
Author-X-Name-First: Juan
Author-X-Name-Last: Blanco
Title: Interactive vs. non-interactive knowledge production by faculty members
Abstract:
In this article, we develop a model of individual choice to study the
determinants of faculty members allocation of effort between interactive
and noninteractive activities. This model is tested by using censored and
discrete choice econometric models to estimate optimum effort allocated to
interactive activities and real interaction. We conclude, first, that
individual responds to nonmonetary rather than monetary incentives and to
the difficulty of producing noninteractive rather than interactive
knowledge. Second, we detect the possible existence of rationing, since
optimum effort and real interaction depend on different variables.
Journal: Applied Economics
Pages: 1289-1297
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771338
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771338
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1289-1297
Template-Type: ReDIF-Article 1.0
Author-Name: Takanori Ida
Author-X-Name-First: Takanori
Author-X-Name-Last: Ida
Author-Name: Shin Kinoshita
Author-X-Name-First: Shin
Author-X-Name-Last: Kinoshita
Author-Name: Masayuki Sato
Author-X-Name-First: Masayuki
Author-X-Name-Last: Sato
Title: Conjoint analysis of demand for IP telephony: the case of Japan
Abstract:
With the recent diffusion of broadband (BB) services, Internet protocol
(IP) telephony is expected to spread significantly in Japan. This article
investigates the demand for IP telephony by using conjoint analysis.
Projecting IP telephony demand also contributes to Japanese
info-communication policy discussions. Two points are made. First, IP
telephony is still currently considered an optional supplement or an
add-on service option of high-speed BB Internet access services in Japan
rather than a close substitute of existing plain old telephone service
(POTS). At this point, we find little evidence that many households will
promptly forsake their fixed line service for IP telephony. Second, we
conclude that the key condition for the proliferation of IP telephony is
the complete guarantee of quality of service (QoS), including voice
quality, number portability, fax usage and emergency access, comparable to
or exceeding that of existing POTS.
Journal: Applied Economics
Pages: 1279-1287
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771312
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771312
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1279-1287
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Villaverde
Author-X-Name-First: Jose
Author-X-Name-Last: Villaverde
Author-Name: Adolfo Maza
Author-X-Name-First: Adolfo
Author-X-Name-Last: Maza
Title: Productivity convergence in the European regions, 1980-2003: a sectoral and spatial approach
Abstract:
This article analyses the evolution of the EU productivity between 1980
and 2003, both across regions and sectors. By making use of various
techniques (cross-section, nonparametric and spatial approaches) it
concludes that: (1) the regional and sectoral dispersion of productivity
is quite high; (2) the gains experienced in aggregate productivity are due
entirely to the sectors productivity growth effect; (3) there is a weak
beta-convergence process at the aggregate and sectoral levels; (4) the
accounting decomposition of the aggregate productivity convergence process
reveals the sectoral productivity growth effect to be the only responsible
factor for regional catching-up; (5) finally, there are clear signs of
spatial dependence which, when properly addressed, increase the speed of
convergence at the aggregate level.
Journal: Applied Economics
Pages: 1299-1313
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771361
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1299-1313
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Cameron
Author-X-Name-First: Samuel
Author-X-Name-Last: Cameron
Title: E-Baying for blood?: noncompetitive flexible pricing in entertainment ticketing-some demand side evidence
Abstract:
This article gives some exploratory results from estimating a consumer
surplus type equation which features a number of economic and demographic
variables as regressors. We calculate an income elasticity for the maximum
surplus that individuals would ever perceive themselves to be getting by
being allowed to buy at a set price. The results also show that those who
attend the cinema are significantly less inclined to generate a surplus in
flexible price events markets whilst young adults offer to pay quite a
large amount more for their heavily desired entertainment. This suggests
that part of the burden of a shift in ticket pricing methods may be borne
by the parents of young adults.
Journal: Applied Economics
Pages: 1315-1322
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771353
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1315-1322
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Manuel Cordero-Ferrera
Author-X-Name-First: Jose Manuel
Author-X-Name-Last: Cordero-Ferrera
Author-Name: Francisco Pedraja-Chaparro
Author-X-Name-First: Francisco
Author-X-Name-Last: Pedraja-Chaparro
Author-Name: Javier Salinas-Jimenez
Author-X-Name-First: Javier
Author-X-Name-Last: Salinas-Jimenez
Title: Measuring efficiency in education: an analysis of different approaches for incorporating non-discretionary inputs
Abstract:
Measuring efficiency in the education sector is a highly complex task.
One of the reasons is that the main resource of schools (the type of
students they have) lie outside of their control, which means that it must
be treated differently to other factors in analysis. This study examines
the different options available in the literature for incorporating
non-controllable inputs in a data envelopment analysis in order to
determine the most appropriate model for evaluating schools. Our empirical
study presents the results obtained using the model proposed by Fried et
al. (1999), though we use bootstrap techniques to avoid problems of bias
in the estimations.
Journal: Applied Economics
Pages: 1323-1339
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771346
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1323-1339
Template-Type: ReDIF-Article 1.0
Author-Name: Katharina Wrohlich
Author-X-Name-First: Katharina
Author-X-Name-Last: Wrohlich
Title: The excess demand for subsidized child care in Germany
Abstract:
The extension of publicly provided or subsidized child care is currently
one of the priorities of the political agenda in many European countries.
In this article, the excess demand for subsidized child care slots in
Germany is estimated using a partial observability model. The results show
that there is considerable excess demand for child care for children aged
less than 3 years in East and West Germany, even among children with
working mothers.
Journal: Applied Economics
Pages: 1217-1228
Issue: 10
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771288
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771288
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Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1217-1228
Template-Type: ReDIF-Article 1.0
Author-Name: James Payne
Author-X-Name-First: James
Author-X-Name-Last: Payne
Author-Name: George Waters
Author-X-Name-First: George
Author-X-Name-Last: Waters
Title: Interest rate pass through and asymmetric adjustment: evidence from the federal funds rate operating target period
Abstract:
This study examines the long-run interest rate pass through of the
federal funds rate to the prime rate and whether there is asymmetric
adjustment in the prime rate using the Enders-Siklos (2001) momentum
threshold autoregressive model over the period February 1987 to October
2005. Once allowance is made for the endogenously determined structural
break in the cointegrating relationship in April 1996, the adjustment of
the prime rate to changes in the federal funds rate appears asymmetric
with upward rigidity, a result contrary to previous studies which found
that the prime rate exhibits downward rigidity. The finding of upward
rigidity in the prime rate lends support for the customer reaction and
adverse selection hypotheses. Moreover, the empirical evidence seems to
support the observation of increased pass through as a result of
heightened competition in the banking industry as well as the Federal
Reserve's enhanced transparency in monetary policy during the 1990s.
Journal: Applied Economics
Pages: 1355-1362
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600806233
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600806233
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1355-1362
Template-Type: ReDIF-Article 1.0
Author-Name: Saziye Gazioglu
Author-X-Name-First: Saziye
Author-X-Name-Last: Gazioglu
Title: Stock market returns in an emerging financial market: Turkish case study
Abstract:
Increased globalization in financial markets implies that the percentage
of all shares under foreign ownership in domestic stock markets has been
rising. The recent speculative attacks on the foreign exchange market in
November 2000, followed by February 2001, led Turkey into a deep economic
crisis. Real stock returns as an important indicator for a forthcoming or
pending financial crisis, using net capital flows have already been
established in Gazioglu (2003). In this article we explore the effects of
capital inflows and outflows to real exchange rates and the real stock
market returns, before, and after the financial crisis. We investigate the
relationship between real exchange rate, real stock returns and capital
flows. We decompose the foreign flows into real assets and liabilities, in
order to investigate the possible long-term effect of inflows and
outflows. Empirical investigation shows that the long-term relationship
only appears between the real exchange rates and the real bank liabilities
owned by the foreigners. The first half of the sub-period, which is the
pre-crisis period, is dominated by capital inflows and outflows. These
affect the real exchange rate whereas the second sub-period, which is the
post-crisis period, is dominated by unstable the capital inflow and
outflows causing the decline of real stock market returns and the
depreciation of the currency. The post-financial crisis period
demonstrates a long-lasting effect on lowering the stock market returns.
This confirms the theoretical findings of this article.
Journal: Applied Economics
Pages: 1363-1372
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600820663
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820663
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1363-1372
Template-Type: ReDIF-Article 1.0
Author-Name: W. Groot
Author-X-Name-First: W.
Author-X-Name-Last: Groot
Author-Name: H. M. van den Brink
Author-X-Name-First: H. M.
Author-X-Name-Last: van den Brink
Title: Health-adjusted life expectancy of the British population
Abstract:
In this article, changes in the quality of health-adjusted life
expectancy of the British population between 1991 and 1998 are analysed.
It is found that at all given age levels, life expectancy increased during
this period. Life expectancy at birth increased by 1 year for women and by
1.5 years for men. It is further found that the prevalence of health
problems and handicaps increased during the 1990s. For all age categories,
the self-assessment of the health status showed that the quality of health
also declined on average. We concluded that the quality-adjusted life
expectancy between 1991 and 1998 showed a decrease rather than an
increase.
Journal: Applied Economics
Pages: 1373-1386
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600820671
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820671
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1373-1386
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Paez-Farrell
Author-X-Name-First: Juan
Author-X-Name-Last: Paez-Farrell
Title: Assessing sticky price models using the Burns and Mitchell approach
Abstract:
This article evaluates sticky-price models using the methods proposed by
Burns and Mitchell, focusing on the monetary aspects of the business
cycle. Recent research has emphasized the responses of models to shocks at
the expense of its systematic component. Whereas sticky-price models have
been successful at replicating impulse response functions from vector
autoregressions, this article highlights that they are unable to mimic the
data for nominal variables. Moreover, the results are robust to the
specification of the Phillips curve, including its backward-looking
variant, calibrated values and the inclusion of fiscal policy shocks.
Since being able to mimic the data is the lowest hurdle a Model must pass,
these results pose a challenge for sticky price models.
Journal: Applied Economics
Pages: 1387-1397
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600794363
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794363
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1387-1397
Template-Type: ReDIF-Article 1.0
Author-Name: Colin Kirkpatrick
Author-X-Name-First: Colin
Author-X-Name-Last: Kirkpatrick
Author-Name: Kenichi Shimamoto
Author-X-Name-First: Kenichi
Author-X-Name-Last: Shimamoto
Title: The effect of environmental regulation on the locational choice of Japanese foreign direct investment
Abstract:
This article assesses the impact of environmental regulation (ER) in host
countries on Japanese foreign direct investment (FDI) decision-making. It
tests the pollution haven hypothesis using data on national (ER) standards
and Japanese inward FDI in five dirty industries (iron and steel industry,
nonferrous metals industry, chemicals industry, paper and pulp industry,
nonmetallic products industry). The results do not support the pollution
hypothesis. On the contrary, inward Japanese FDI appears to be attracted
to countries which have committed themselves to a transparent and stable
environment regulatory environment, suggesting that the quality of the
regulatory framework in terms of its certainty and transparency has a
greater influence on foreign investors' choice of location than the level
of environmental regulatory measures.
Journal: Applied Economics
Pages: 1399-1409
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600794330
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794330
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1399-1409
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Fabbri
Author-X-Name-First: Daniele
Author-X-Name-Last: Fabbri
Author-Name: Chiara Monfardini
Author-X-Name-First: Chiara
Author-X-Name-Last: Monfardini
Title: Style of practice and assortative mating: a recursive probit analysis of Caesarean section scheduling in Italy
Abstract:
We study practice variation in scheduling of caesarean section (CS)
delivery across public and private hospitals in Italy. Adopting a novel
perspective, we look at the role played by patients' preferences for the
treatment. The recursive probit model is revisited as a useful tool to
assess the presence of assortative mating of patients and provider driven
by style of practice. According to our evidence, the propensity to
schedule a CS is codetermined with patient self-sorting into hospital
types. We measure a significantly higher inclination to practice CS
scheduling in private hospitals and conclude that assortative mating is of
minor relevance in our case, even if we cannot exclude it to be present.
Journal: Applied Economics
Pages: 1411-1423
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771395
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771395
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1411-1423
Template-Type: ReDIF-Article 1.0
Author-Name: Aquiles Elie Guimaraes Kalatzis
Author-X-Name-First: Aquiles Elie
Author-X-Name-Last: Guimaraes Kalatzis
Author-Name: Carlos Roberto Azzoni
Author-X-Name-First: Carlos Roberto
Author-X-Name-Last: Azzoni
Author-Name: Jorge Alberto Achcar
Author-X-Name-First: Jorge Alberto
Author-X-Name-Last: Achcar
Title: Financial constraints and investment decisions: evidence from a highly unstable emerging economy
Abstract:
This study analyses the role of financial constraints on the investment
decisions of 497 Brazilian firms. We use panel data, with firm-specific
information for different years, allowing for the abandonment of the
representative firm model. Information on capital intensity at the firm
level is used to group firms. We estimate different models and the results
suggest the presence of financial restrictions, especially for
capital-intensive firms.
Journal: Applied Economics
Pages: 1425-1434
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771379
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771379
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1425-1434
Template-Type: ReDIF-Article 1.0
Author-Name: M. Angeles Diaz
Author-X-Name-First: M.
Author-X-Name-Last: Angeles Diaz
Author-Name: Rosario Sanchez
Author-X-Name-First: Rosario
Author-X-Name-Last: Sanchez
Title: Temporary contracts and young women in Spain
Abstract:
In this article we analyse the determinants of temporary employment
through a balanced panel of workers from 1995 to 2000. First, we estimate
a panel with 1267 individuals with ages ranging from 16 to 65 years. We
obtain that the probability of having a temporary contract increases for
people younger than 46 years old. Secondly, we estimate separately the
sample of people younger than 46 years old and we obtain that the
probability of temporality increases for young people with university
level of education. More interestedly, the probability of being in a
temporary contract is smaller for young women that for young men in Spain.
Journal: Applied Economics
Pages: 1435-1442
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600771387
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600771387
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1435-1442
Template-Type: ReDIF-Article 1.0
Author-Name: Margarita Genius
Author-X-Name-First: Margarita
Author-X-Name-Last: Genius
Author-Name: Elisabetta Strazzera
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Strazzera
Title: Applying the copula approach to sample selection modelling
Abstract:
The limited availability of tractable multivariate distributions
undermines the validity of the standard parametric approach to sample
selection modelling. Copula distributions can be very useful in situations
where the applied researcher has a prior on the distributional form of the
margins, since the modelling of the latter is separated from that of the
dependence structure. The present article first presents an application to
female work data. Afterwards, the approach is analysed in an application
to contingent valuation data on recreational values of forests. It is
shown that the copula approach is especially beneficial in case of strong
departures from the hypothesis of normality.
Journal: Applied Economics
Pages: 1443-1455
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600794348
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794348
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1443-1455
Template-Type: ReDIF-Article 1.0
Author-Name: Kuo-Liang Wang
Author-X-Name-First: Kuo-Liang
Author-X-Name-Last: Wang
Author-Name: Shu-Ching Wang
Author-X-Name-First: Shu-Ching
Author-X-Name-Last: Wang
Title: Profitability, concentration, imports and exports: the case of Taiwan's midstream petrochemical industries
Abstract:
Based on an open-economy oligopoly model, causalities among domestic
firms' price-cost margin (PCM), domestic concentration, import and export
shares are derived and a simultaneous-equation system is established. By
utilizing the 1989-1997 data of Taiwan's midstream petrochemical
industries, three-stage least squares is used to estimate the system. The
empirical results confirm the derived results, and demonstrate: (1) there
exist simultaneous relationships among domestic PCM, domestic
concentration, import and export shares; (2) import concentration affects
domestic concentration positively, but affects domestic PCM, import and
export shares negatively; (3) diversifying international markets improves
domestic firms' PCM; (4) domestic firms seem to be in a situation of
collusion.
Journal: Applied Economics
Pages: 1457-1473
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600820697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820697
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1457-1473
Template-Type: ReDIF-Article 1.0
Author-Name: Adelina Gschwandtner
Author-X-Name-First: Adelina
Author-X-Name-Last: Gschwandtner
Author-Name: Michael Hauser
Author-X-Name-First: Michael
Author-X-Name-Last: Hauser
Title: Modelling profit series: nonstationarity and long memory
Abstract:
The dynamic structure of profit rates for 156 US manufacturing companies
is analysed by means of fractional integration techniques as an
alternative to the commonly used ARIMA models with respect to the
'persistence of profits'. Thereby the pseudo-spectral density aproach of
Velasco and Robinson together with model selection criteria is applied.
The results show-despite the short lengths of the series and tests for the
integer degrees of integration (d = 0, 1)-that 35.5% of the series may be
well-approximated by long-range dependent processes, and 54% are
nonstationary. This is a confirmation of the strong challenge to the
competitive environment hypothesis obtained by previous studies.
Journal: Applied Economics
Pages: 1475-1482
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600794355
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794355
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1475-1482
Template-Type: ReDIF-Article 1.0
Author-Name: Evens Salies
Author-X-Name-First: Evens
Author-X-Name-Last: Salies
Title: Mergers in the GB electricity market: effects on retail charges
Abstract:
The opening up of the UK residential electricity sector in 1999 prompted
several studies of the impact this had on both the level and structuring
of retail charges, and on incumbent players' market power. Drawing on
observations of regional tariffs for the month of January 2004, this
article supports previous conclusions based on simulated retail charges,
looking at the response of real tariffs to distribution and transmission
costs, customer density and the length of low voltage underground circuit.
We also investigate whether vertically integrated suppliers have a
particular effect on charges ceteris paribus the effect of cost drivers
and supplier-related factors.
Journal: Applied Economics
Pages: 1483-1490
Issue: 11
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600794322
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600794322
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Handle: RePEc:taf:applec:v:40:y:2008:i:11:p:1483-1490
Template-Type: ReDIF-Article 1.0
Author-Name: D. Furceri
Author-X-Name-First: D.
Author-X-Name-Last: Furceri
Author-Name: G. Karras
Author-X-Name-First: G.
Author-X-Name-Last: Karras
Title: Business-cycle synchronization in the EMU
Abstract:
This article asks whether the business cycles of the EU countries have
become more or less synchronized after the introduction of the euro. Our
findings show that all countries in our EU sample are better synchronized
with the EMU-wide economy in the post-EMU period than they were before the
euro. We also show that this increase in synchronization is present in all
components of aggregate demand, as well as two supply-side variables, but
it is more pronounced in the trade components (imports and, particularly,
exports). It is also shown that the increase in trade within the EMU area
is at least partly responsible for the increase in cyclical
synchronization.
Journal: Applied Economics
Pages: 1491-1501
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600843954
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843954
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1491-1501
Template-Type: ReDIF-Article 1.0
Author-Name: Jose-Luis Fernandez
Author-X-Name-First: Jose-Luis
Author-X-Name-Last: Fernandez
Author-Name: J. Forder
Author-X-Name-First: J.
Author-X-Name-Last: Forder
Title: Consequences of local variations in social care on the performance of the acute health care sector
Abstract:
This article uses 2 years worth of data from 150 English local
authorities to quantify the extent to which local variations in social
care resources are associated with variations in performance of the acute
sector, and particularly on the rates of hospital delayed discharges and
hospital emergency re-admissions. Results indicate that social care
services play a significant role in explaining local variations in acute
sector performance.
Journal: Applied Economics
Pages: 1503-1518
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600843939
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843939
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1503-1518
Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Borrmann
Author-X-Name-First: Jorg
Author-X-Name-Last: Borrmann
Title: Awarding monopoly franchises repeatedly: are second-best block-rate tariffs attainable without regulation?
Abstract:
Under economies of scale, Demsetz's (1968) proposal of franchise bidding
results, at best, in uniform prices approaching average cost. This article
questions the accepted belief that the auctioneer always needs to know the
market demand function, if the concept is modified so as to allow for bids
consisting of block-rate tariffs in order to increase welfare. Given a
setting of repeated auctions, the auctioneer can apply a sequential
mechanism to evaluate bids, instead of evaluating them in each auction
independently. We characterize the conditions under which a second-best
block-rate tariff for given thresholds is approached in equilibrium.
Journal: Applied Economics
Pages: 1519-1528
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600829144
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600829144
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1519-1528
Template-Type: ReDIF-Article 1.0
Author-Name: Liu Zhentao
Author-X-Name-First: Liu
Author-X-Name-Last: Zhentao
Title: Testing the liquidity effect with equilibrium interest rate
Abstract:
We examine the existence of liquidity effects by using the equilibrium
interest rates estimated from the disequilibrium analysis instead of the
observed interest rate. The use of equilibrium interest rates allows us to
take the growth rate in the money supply as being exogenous and circumvent
the identification problem away. Following the traditional AR model and
the method proposed by Hamilton (1997), we obtain evidences showing the
negative relationship between the equilibrium interest rate and the growth
rate in money supply.
Journal: Applied Economics
Pages: 1529-1535
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600820689
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820689
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1529-1535
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Lange
Author-X-Name-First: Ronald
Author-X-Name-Last: Lange
Title: A decomposition of the predictive content of the term structure for output growth in Canada
Abstract:
The purpose of this study is to identify the underlying economic
disturbances that drive the predictive content of the term structure for
future output growth and those that may distort its information content.
The study uses a structural vector autoregressive (VAR) model of a small
and open economy for Canada that takes into account its relationship with
financial markets in the USA and that Canada is a relatively large
exporter of commodities. The model is used to decompose the sources of the
variation of the slope of the yield curve and the correlation between the
term spread and output growth. Monetary policy disturbances in both Canada
and the USA, as well as short-term interest rates, are found to trigger
excessive volatility in short-term rates and the term spread that do not
contribute to the predictive content of the term spread for future output
growth at horizons relevant for monetary policy analysis. However,
innovations in output growth, inflation and other macroeconomic variables
do not distort the forecast power of the term spread. Unlike the evidence
for the USA, disturbances in nominal long-term yields are found to
contribute about the same amount to the predictive content of the term
spread as unexpected movements in monetary policy.
Journal: Applied Economics
Pages: 1537-1545
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600820705
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600820705
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1537-1545
Template-Type: ReDIF-Article 1.0
Author-Name: Olugbenga Onafowora
Author-X-Name-First: Olugbenga
Author-X-Name-Last: Onafowora
Author-Name: Oluwole Owoye
Author-X-Name-First: Oluwole
Author-X-Name-Last: Owoye
Title: Exchange rate volatility and export growth in Nigeria
Abstract:
This article examines the impact of exchange rate volatility on Nigeria's
exports to its most important trading-partner-the United States over the
quarterly period January 1980 to April 2001. Using cointegration and
vector error correction (VECM) framework, empirical tests indicate the
presence of a unique cointegrating vector linking real exports, real
foreign income, relative export prices and real exchange rate volatility
in the long run. Furthermore, the results show that increases in the
volatility of the real exchange rate raise uncertainty about profits to be
made which exert significant negative effects on exports both in the
short- and long-run. Our results also show that improvements in the terms
of trade (represented by declines in the real exchange rate) and real
foreign income exert positive effects on export activity. Most
importantly, we found that the trade liberalization and economic reform
policies implemented in the post-1986 structural adjustment period
contributed to Nigeria's export performance. Overall, our findings suggest
that Nigeria's exporting activities can be further boosted by policies
aimed at achieving and maintaining a stable competitive real exchange
rate.
Journal: Applied Economics
Pages: 1547-1556
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600827676
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600827676
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1547-1556
Template-Type: ReDIF-Article 1.0
Author-Name: Par Osterholm
Author-X-Name-First: Par
Author-X-Name-Last: Osterholm
Title: A structural Bayesian VAR for model-based fan charts
Abstract:
Inflation forecast uncertainty is of importance for a wide range of
agents in the economy, central banks in particular. Ways to describe and
account for this uncertainty in a consistent manner have received
increasing attention of late, in part due to the growing number of
inflation-targeting central banks. This article develops a large
structural VAR for the Swedish economy and estimates it in a Bayesian
framework. The methodology permits not only structural interpretation and
analysis but offers a natural way to formalize forecast uncertainty, as
the posterior predictive density from the model has the interpretation of
a fan chart.
Journal: Applied Economics
Pages: 1557-1569
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600843947
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843947
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1557-1569
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Detection of switching cointegration rank allowing for switching lag structure: an application to money-demand function
Abstract:
A new method is developed for detecting regime switches between
cointegration and no-cointegration at unknown times allowing for switching
lag structure. In this method, time-series observations are divided into
several segments, and a regression model with or without cointegration is
fitted to each segment. The goodness of fit of the global model composed
of these local models is evaluated using the corresponding modified
information criterion, and the division which minimizes this criterion
defines the best model. Simulation results suggest that the proposed
method works well. Empirical results indicate that money demand is well
described by the proposed method in Canada, UK and Japan.
Journal: Applied Economics
Pages: 1571-1582
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600843962
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843962
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1571-1582
Template-Type: ReDIF-Article 1.0
Author-Name: Yue Ma
Author-X-Name-First: Yue
Author-X-Name-Last: Ma
Author-Name: Ying Chu Ng
Author-X-Name-First: Ying
Author-X-Name-Last: Chu Ng
Title: Bootstrapping statistical inferences of decomposition methods for gender earnings differentials
Abstract:
Applying the standard bootstrapping technique with corrections for
heteroskedasticity for a sample of the 1997 Urban Household Survey in
China, the present article attempts to test (1) whether the commonly used
decomposition methods for gender earnings differentials give significantly
different results and (2) whether the explained component is significantly
different from the unexplained component (which is commonly referred to as
discrimination) within each decomposition method. Based on a national data
set, the empirical results indicated some significant differences in both
tests. The implication of the results is that the proposed bootstrapping
technique can be regarded as a guideline on applying which approach to
decompose gender earnings differentials among different methods without
losing important information, and on evaluating the relative importance of
the decomposition components for any chosen method.
Journal: Applied Economics
Pages: 1583-1593
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600843970
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843970
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1583-1593
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Lawrance
Author-X-Name-First: Anthony
Author-X-Name-Last: Lawrance
Author-Name: Robert Marks
Author-X-Name-First: Robert
Author-X-Name-Last: Marks
Title: Firm size distributions in an industry with constrained resources
Abstract:
We propose an equilibrium model for firm size distribution in an industry
with a constrained essential input. The model applies when the population
of firms is small and homogeneous and the supply of the necessary input
factor is perfectly inelastic. We argue that although the Gibrat
assumption obtains, this does not result in the lognormal distribution
because of the entries, exits and mergers of firms competing for the
inelastic essential resource. Using our own 32-year database of firms, we
test the broken-stick, or random-ordered-interval, model that we call the
Whitworth distribution, successfully applied by others to a number of data
sets, including the abundances of bird species. We propose the Whitworth
as the basic model of the equilibrium distribution of firm sizes for such
supply-constrained industries, and find it fits our 31-year database best.
Journal: Applied Economics
Pages: 1595-1607
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600843988
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843988
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1595-1607
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Bajo-Rubio
Author-X-Name-First: Oscar
Author-X-Name-Last: Bajo-Rubio
Author-Name: Carmen Diaz-Roldan
Author-X-Name-First: Carmen
Author-X-Name-Last: Diaz-Roldan
Author-Name: Vicente Esteve
Author-X-Name-First: Vicente
Author-X-Name-Last: Esteve
Title: US deficit sustainability revisited: a multiple structural change approach
Abstract:
In this article we re-examine the long-run sustainability of US budget
deficits, using Bai and Perron's multiple structural change approach.
While the deficit would have been weakly sustainable over the full sample
(1947:1-2005:3), strong sustainability would appear only between January
1982 and February 1996.
Journal: Applied Economics
Pages: 1609-1613
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600843996
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843996
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1609-1613
Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Financial development and economic growth nexus: a time-series evidence from India
Abstract:
This study examines the relationship between financial development and
economic growth in India for the period 1951-52 to 1995-96. The long-run
equilibrium and short-run dynamic models are estimated using financial
interrelations ratio and new issue ratio as the measures of financial
development, a la Goldsmith (1969). The Johansen (1991) estimator rejects
the null of zero cointegrating vector and shows the presence of long-run
equilibrium relationship between financial development and economic
growth. The error correction model, impulse response and variance
decomposition analyses (Sims, 1980), and the Toda and Yamamoto (1995)
estimator show the presence of bidirectional Granger-causality between
financial development and economic growth. The presence of bidirectional
Granger-causality suggested by these estimators points towards the
possible problem of endogeneity and simultaneity bias in the growth models
that examine the contemporaneous effect of financial development on
economic growth. The economic reforms that started since July 1991
emphasized on the liberalization and development of financial sector to
supplement the efforts aimed at achieving high economic growth in India.
Journal: Applied Economics
Pages: 1615-1627
Issue: 12
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600892886
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600892886
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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1615-1627
Template-Type: ReDIF-Article 1.0
Author-Name: Yuqing Zheng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Zheng
Author-Name: Henry Kinnucan
Author-X-Name-First: Henry
Author-X-Name-Last: Kinnucan
Author-Name: Henry Thompson
Author-X-Name-First: Henry
Author-X-Name-Last: Thompson
Title: News and volatility of food prices
Abstract:
Financial markets exhibit an asymmetric news effect with unexpected low
prices generating more price volatility than 'news' of high prices. The
present study examines US food markets for such asymmetric news effects.
Analysis of 25 years of monthly data for 45 retail food items shows that
price news destabilizes about a third of the markets with unexpected price
increases more destabilizing.
Journal: Applied Economics
Pages: 1629-1635
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600892910
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600892910
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1629-1635
Template-Type: ReDIF-Article 1.0
Author-Name: Shaikh Hamid
Author-X-Name-First: Shaikh
Author-X-Name-Last: Hamid
Author-Name: Tej Dhakar
Author-X-Name-First: Tej
Author-X-Name-Last: Dhakar
Title: The behaviour of the US consumer price index 1913-2003: a study of seasonality in the monthly US CPI
Abstract:
This article analyses the seasonality in the monthly consumer price index
(CPI) over the period January 1913 to December 2003. We examine three
types of month effects: if the mean of monthly CPI changes of the entire
data set, and of a given month were significantly different from zero; if
the mean of monthly CPI changes of a given month was different from the
mean of the other months; and if the variance of the monthly CPI changes
for a given month was different from the variance of the other months. The
mean of monthly CPI changes for the entire data set (0.27%) was found to
be significantly greater than zero. The means of monthly changes show a
downward trend from September to December. When the data are sliced into
three sub-periods, we find an increasing trend in the means and medians of
monthly changes but a decreasing trend in the SDs of the monthly changes.
The mean of monthly CPI changes during the republican presidencies (0.15%)
was significantly lower than during the democratic presidencies (0.38%).
Journal: Applied Economics
Pages: 1637-1650
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905159
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905159
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1637-1650
Template-Type: ReDIF-Article 1.0
Author-Name: Alvaro Aguiar
Author-X-Name-First: Alvaro
Author-X-Name-Last: Aguiar
Author-Name: Manuel Martins
Author-X-Name-First: Manuel
Author-X-Name-Last: Martins
Title: Testing for asymmetries in the preferences of the euro-area monetary policymaker
Abstract:
This article tests for asymmetries in the preferences of the euro-area
monetary policymaker with 1995:1-2005:2 data from the latest update of the
European Central Bank's (ECB's) Area-wide database. Following the relevant
literature, we distinguish between three types of asymmetry: precautionary
demand for expansions, precautionary demand for price stability and
interest rate smoothing asymmetry. Based on the joint generalized method
of moments (GMM) estimation of the Euler equation of optimal policy and
the aggregate supply-aggregate demand (AS-AD) structure of the
macroeconomy, we find evidence of precautionary demand for price stability
in the preferences revealed by the monetary policymaker. This type of
asymmetry is consistent with the ECB's definition of price stability and
with the priority of credibility-building by a recently created monetary
authority.
Journal: Applied Economics
Pages: 1651-1667
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600870999
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600870999
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1651-1667
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Ezcurra
Author-X-Name-First: Roberto
Author-X-Name-Last: Ezcurra
Author-Name: Belen Iraizoz
Author-X-Name-First: Belen
Author-X-Name-Last: Iraizoz
Author-Name: Pedro Pascual
Author-X-Name-First: Pedro
Author-X-Name-Last: Pascual
Author-Name: Manuel Rapun
Author-X-Name-First: Manuel
Author-X-Name-Last: Rapun
Title: Spatial disparities in the European agriculture: a regional analysis
Abstract:
This article examines the territorial imbalances in European agriculture
during the period 1980 to 2001, by means of the information provided by
various methodological instruments which allow us to overcome the
drawbacks of conventional convergence analysis. The results obtained
reveal that the regional distribution of productivity in the agricultural
sector is characterized by the presence of positive spatial dependence.
This fact implies that the European regions in close spatial proximity
register similar levels of the variable under study, which highlights the
relevance of geographical location in this context. The empirical evidence
presented also shows that regional disparities have remained almost
constant during the time interval considered. However, the increase in
density around the European average explains the observed reduction in the
degree of bipolarization, while intra-distribution mobility is relatively
limited. Finally, the analysis carried out allows us to assess the role of
variables such as country of origin, investment per worker in the
agricultural sector, regional per capita income or the size of the
agrifood industry, in explaining the dynamics of the distribution under
analysis.
Journal: Applied Economics
Pages: 1669-1684
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905175
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905175
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1669-1684
Template-Type: ReDIF-Article 1.0
Author-Name: Yuan-Hung Hsu Ku
Author-X-Name-First: Yuan-Hung Hsu
Author-X-Name-Last: Ku
Title: Student-t distribution based VAR-MGARCH: an application of the DCC model on international portfolio risk management
Abstract:
Significant second-moment transmission effects and obvious time-varying
patterns of correlation coefficients among major equity and currency
markets in the US, Japan and the UK are found to exist. Such observations
inspire the time-varying setting of dynamic conditional correlation
coefficients in MGARCH models. On the other hand, the multivariate
Student-t distribution is suitable for analysing the visible leptokurtosis
that is common in financial markets. Both are important for international
portfolio risk management. Thus, a comparison on the hedging efficiency of
hypothetical portfolios consisting of stock and currency future positions
is conducted in order to justify the multivariate Student-t distribution
based on the DCC-MGARCH model.
Journal: Applied Economics
Pages: 1685-1697
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600892894
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600892894
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1685-1697
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Jara-Diaz
Author-X-Name-First: Sergio
Author-X-Name-Last: Jara-Diaz
Author-Name: Beatriz Tovar
Author-X-Name-First: Beatriz
Author-X-Name-Last: Tovar
Author-Name: Lourdes Trujillo
Author-X-Name-First: Lourdes
Author-X-Name-Last: Trujillo
Title: On the proper modelling of multioutput port cargo handling costs
Abstract:
Cargo handling activities involve various heterogeneous outputs, e.g.
general cargo, containers, dry and liquid bulk and so on. These activities
in ports, however, have been usually analysed using aggregate descriptions
of output such as total tons moved. The main purpose of this article is to
show that ignoring this heterogeneity may lead to two types of problems:
(i) the underestimation of the relevance of key dimensions (i.e. marginal
costs per product and economies of scope) and (ii) a bias in the estimates
of the relevance of other dimensions (economies of scale). To do so, we
rely on a unique new dataset on three cargo handling firms operating in a
Spanish port between 1991 and 1999. We use it to estimate both a
multi-output cost for these three operators, as well as an aggregate cost
function. The policy conclusions are derived from an explicit and detailed
comparison of these two sets of estimates.
Journal: Applied Economics
Pages: 1699-1705
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600892902
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600892902
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1699-1705
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Fernandez-Serrano
Author-X-Name-First: Jose Luis
Author-X-Name-Last: Fernandez-Serrano
Author-Name: M. Dolores Robles-Fernandez
Author-X-Name-First: M. Dolores
Author-X-Name-Last: Robles-Fernandez
Title: Time-series model forecasts and structural breaks: evidence from Spanish pre-EMU interest rates
Abstract:
Analysis of the future behaviour of economic variables can be biased if
structural breaks are not considered. When these structural breaks are
present, the in-sample fit of a model gives us a poor guide to ex ante
forecast performance. This problem is true for both univariate and
multivariate analysis and can be extremely important when co-integration
relationships are analysed. The main goal of this article is to analyse
the impact of structural breaks on forecast accuracy evaluation. We focus
on forecasting several interest rates from the Spanish interbank money
market. In order to carry out the analysis, we perform two forecasting
exercises: (a) without structural breaks and (b) when structural breaks
are explicitly considered. We use new sequential methods in order to
estimate change-points in an endogenous way. This method allows us to
detect structural breaks in all four rates in May 1993. However, the
effects of these breaks are not very strong, since we found scarce gains
in forecasting accuracy when the structural breaks are included in the
models.
Journal: Applied Economics
Pages: 1707-1721
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600895640
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600895640
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1707-1721
Template-Type: ReDIF-Article 1.0
Author-Name: Atsushi Yoshida
Author-X-Name-First: Atsushi
Author-X-Name-Last: Yoshida
Author-Name: Young-Sook Kim
Author-X-Name-First: Young-Sook
Author-X-Name-Last: Kim
Title: Sharing health risk and income risk within households: evidence from Japanese data
Abstract:
The question of which household members should consume medical services,
and in what quantities, is examined by using Japanese household-level
data. Two key concepts are employed, health risk and income risk, and
whether family heads or dependants bear these risks investigated. Health
risk is the risk that a household member falls ill, while income risk is
the risk that future household income decreases. It is found that both
heads and dependants make fewer visits to doctors as household size
increases. It is also found that only dependants visited doctors less
frequently following the reform of the public health insurance system,
which raised the co-payment rate of family heads from 10% to 20%. These
findings imply that heads and dependants share health risk but dependants
bear income risk.
Journal: Applied Economics
Pages: 1723-1735
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600895798
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600895798
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1723-1735
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu
Author-X-Name-First: Chun-Chu
Author-X-Name-Last: Liu
Title: Evaluating the operational efficiency of major ports in the Asia-Pacific region using data envelopment analysis
Abstract:
In recent years, as competition among international ports has
intensified, the impartial and objective evaluation of port operational
efficiency has become increasingly important in enabling each individual
port to understand its peculiar strengths and weaknesses, as well as any
immediate threats or opportunities that may affect its competitive
environment. This study applies CCR model, BCC model and 3-stage DEA model
to evaluate the changes in efficiency that have taken place between 1998
and 2001 in 10 ports in the Asia-Pacific region using cross-period data.
The empirical results show that different model will lead to different
result. On average, the efficiency estimated by 3-stage DEA procedure is
the highest, while CCR efficiency is the lowest. It should be noted that
the efficiencies based on CCR and BCC model are somewhat lower than the
3-stage DEA approaches, because they do not take the environmental
factors, managerial inefficiency and statistical noises into account.
Journal: Applied Economics
Pages: 1737-1743
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905126
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905126
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1737-1743
Template-Type: ReDIF-Article 1.0
Author-Name: Sigbjorn Tveteras
Author-X-Name-First: Sigbjorn
Author-X-Name-Last: Tveteras
Author-Name: Frank Asche
Author-X-Name-First: Frank
Author-X-Name-Last: Asche
Title: International fish trade and exchange rates: an application to the trade with salmon and fishmeal
Abstract:
International fish trade is growing, and fish exports represent an
important source of foreign currency for many countries. For a few
countries the exports are also an essential part of the economy. We
revisit the seminal paper of Richardson (1978) that addresses the issue of
exchange rate pass-through in commodity markets, but in a multivariate
cointegration framework. The multivariate cointegration framework allows
us to test common assumptions like exchange rate pass-through, leading
price, central markets, and exogeneity of exchange rates. This approach is
particularly suited when studying markets for primary products. We provide
empirical examples using salmon imports to Japan and fish meal exports
from Peru to Germany.
Journal: Applied Economics
Pages: 1745-1755
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905134
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905134
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1745-1755
Template-Type: ReDIF-Article 1.0
Author-Name: Jie-Min Lee
Author-X-Name-First: Jie-Min
Author-X-Name-Last: Lee
Author-Name: Sheng-Hong Chen
Author-X-Name-First: Sheng-Hong
Author-X-Name-Last: Chen
Title: The effects of price and smoking risk information on the demand for tobacco in Taiwan: an empirical study
Abstract:
This study evaluates the effects of a cigarette price increase and
smoking risk information on tobacco consumption in Taiwan. Tobacco price,
expenditure and an index of smoking risk information for Taiwan were
introduced into a Central Bureau of Statistics (CBS) demand model to
estimate several cigarette demand elasticity coefficients. According to
this model, increasing the cigarette price is a more effective means of
reducing cigarette consumption than disseminating more risk information.
In addition, we found that a price rise of NT$5 per cigarette pack would
cause a reduction in the consumption of domestic and imported cigarettes
of 3.23 and 4.86 packs per capita, respectively. Total per capita
consumption of cigarettes would be reduced annually by 8.09 packs (7.56%).
Despite this reduction in cigarette consumption, the increase in cigarette
price would at the same time lead to a significant net increase in tax
revenue to the Taiwan government.
Journal: Applied Economics
Pages: 1757-1767
Issue: 13
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905142
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905142
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Handle: RePEc:taf:applec:v:40:y:2008:i:13:p:1757-1767
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Pakko
Author-X-Name-First: Michael
Author-X-Name-Last: Pakko
Title: No smoking at the slot machines: the effect of a smoke-free law on Delaware gaming revenues
Abstract:
As communities around the nation consider laws restricting smoking in
public places, a key political and economic issue that often arises is the
effect that such laws have on the sales and profits of particular sectors.
The gaming industry has been active in opposition to such ordinances,
citing large prospective losses. This article analyses the revenues of
three gaming facilities in Delaware following the implementation of a
smoke-free law in December 2002. Revenues are found to have declined
significantly at each of the three facilities, with relative magnitudes of
losses corresponding to the availability of alternative gaming venues in
the region.
Journal: Applied Economics
Pages: 1769-1774
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905241
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905241
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1769-1774
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Joachim Tan
Author-X-Name-First: Joachim
Author-X-Name-Last: Tan
Title: Forecasting international bandwidth capacity using linear and ANN methods
Abstract:
An artificial neural network (ANN) can improve forecasts through pattern
recognition of historical data. This article evaluates the reliability of
ANN methods, as opposed to simple extrapolation techniques, to forecast
Internet bandwidth index data that is bursty in nature. A simple
feedforward ANN model is selected as a nonlinear alternative, as it is
flexible enough to model complex linear or nonlinear relationships without
any prior assumptions about the data generating process. These data are
virtually white noise and provides a challenge to forecasters. Using
standard forecast error statistics, the ANN and the simple exponential
smoothing model provide modestly better forecasts than other extrapolation
methods.
Journal: Applied Economics
Pages: 1775-1787
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905183
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905183
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1775-1787
Template-Type: ReDIF-Article 1.0
Author-Name: David Maddison
Author-X-Name-First: David
Author-X-Name-Last: Maddison
Author-Name: Anders Jul Pedersen
Author-X-Name-First: Anders
Author-X-Name-Last: Jul Pedersen
Title: The death effect in art prices: evidence from Denmark
Abstract:
Analysing a panel of paintings by Danish painters suggests that the
conditional life expectancy of the artist at the time of sale has a
negative impact on the sale price. This is consistent with the idea that
artists share some of the characteristics of durable monopolists and that
the aging and ultimately the death of the artist represent acceptable
forms of commitment not to 'overproduce'. In addition interest in an
artist's work begins to wane after their death.
Journal: Applied Economics
Pages: 1789-1793
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905191
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905191
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1789-1793
Template-Type: ReDIF-Article 1.0
Author-Name: Takashi Unayama
Author-X-Name-First: Takashi
Author-X-Name-Last: Unayama
Title: Measuring the substitution bias in Japan: the demand system approach and a superlative index
Abstract:
This study estimates the demand system using Japanese micro data and
calculates the cost of living index (COLI) to assess the substitution bias
in the Consumer Price Index. The estimated bias during the sample period
of 1982-2000 is about 0.06 percentage points, which is larger than the
estimates calculated from a superlative index. The difference between the
COLI and a superlative index can be explained with the upward movements of
the average utility level in Japan, since the cost of living for the rich
has grown more rapidly than that for the poor.
Journal: Applied Economics
Pages: 1795-1806
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905209
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905209
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1795-1806
Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Aydede
Author-X-Name-First: Yigit
Author-X-Name-Last: Aydede
Title: Aggregate consumption function and public social security: the first time-series study for a developing country, Turkey
Abstract:
This article is the first attempt in the literature to investigate the
effects of public social security on aggregate consumption in a
time-series setting for a developing country, Turkey that has one of the
most generous social security systems in the organization for economic
cooperation and development (OECD) region. In order to quantify the social
security variable, this article uses the social security wealth (SSW)
series calculated for Turkey in a separate study. This study indicates
that SSW is the largest part of the household wealth in Turkey, and
therefore should not be ignored in the aggregate consumption studies. The
results show that its effect on consumption is positive and robust.
Journal: Applied Economics
Pages: 1807-1826
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905167
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905167
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1807-1826
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Mate-Garcia
Author-X-Name-First: Jorge
Author-X-Name-Last: Mate-Garcia
Author-Name: Jose Rodriguez-Fernandez
Author-X-Name-First: Jose
Author-X-Name-Last: Rodriguez-Fernandez
Title: Productivity and R&D: an econometric evidence from Spanish firm-level data
Abstract:
This article analyses the relationship between productivity growth and
R&D investments of Spanish manufacturing firms during the 1990s. The
theoretical model is a version of the Cobb-Douglas production function in
its growth rate form. The purpose is to estimate the rate of return to R&D
expenditures. The econometric specification is a distributed lag model.
The estimation applies the generalized method of moments method. The main
empirical finding is that a positive and significant role is played by R&D
expenditures on productivity growth. The rate of return to R&D
expenditures is 26.598%.
Journal: Applied Economics
Pages: 1827-1837
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905217
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905217
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1827-1837
Template-Type: ReDIF-Article 1.0
Author-Name: Heinz Welsch
Author-X-Name-First: Heinz
Author-X-Name-Last: Welsch
Title: The welfare costs of corruption
Abstract:
Corruption has been shown to affect a variety of economic indicators,
especially GDP per capita. However, as GDP is not a genuine indicator of
welfare, it may reflect the welfare costs of corruption only in an
incomplete way. This article uses self-rated subjective well-being as an
empirical approximation to general welfare and shows that cross-national
welfare - operationalized in this way - is affected by corruption not only
indirectly through GDP, but also directly through nonmaterial factors.
This article estimates the size of these effects as well as their monetary
equivalent. The direct effect - not previously investigated in the
corruption literature - is found to be substantially larger than the
indirect effect.
Journal: Applied Economics
Pages: 1839-1849
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905225
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905225
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1839-1849
Template-Type: ReDIF-Article 1.0
Author-Name: Felix Lopez-Iturriaga
Author-X-Name-First: Felix
Author-X-Name-Last: Lopez-Iturriaga
Author-Name: Juan Antonio Rodriguez-Sanz
Author-X-Name-First: Juan Antonio
Author-X-Name-Last: Rodriguez-Sanz
Title: Capital structure and institutional setting: a decompositional and international analysis
Abstract:
The legal and institutional setting is more and more influential in
firms' financial decisions. Our article analyses firms' capital structure
in an international framework in order to assess the different level of
debt use across countries and to identify both common and differential
explanatory factors. Although the level of financial leverage is quite
different, the factors that have traditionally driven capital structure
decisions have much in common in all the legal and institutional settings.
The performance and size of the firm, the assets tangibility and the
growth opportunities have a relevant but differential effect across the
different institutional systems. Consequently, our results suggest that
the legal and institutional system of each country does not only affect
firms' capital structure but also creates the conditions to explain a
differential effect of the common determinants of firms' financial
choices.
Journal: Applied Economics
Pages: 1851-1864
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905233
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905233
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1851-1864
Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Granier
Author-X-Name-First: Laurent
Author-X-Name-Last: Granier
Title: Endogenous mergers and cost heterogeneity
Abstract:
The objective of this article is to analyze the effect of firms'
heterogeneity on their incentives to merge. To reach this target, merger
decisions are modelled as endogenous. To simplify the analysis, we focus
on the extreme case where merger leads to monopolization. Kamien and Zang
(1990, 1993) give monopolization conditions in static and dynamic
acquisition games. Introducing cost heterogeneity in a n-firm industry, we
provide more general monopolization conditions. Indeed, we show that any
industry can be monopolized if cost heterogeneity is large enough. This
result provides new information to competition authorities on
concentration possibilities and allows them to focus particularly on some
industries.
Journal: Applied Economics
Pages: 1865-1871
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905258
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905258
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1865-1871
Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Galdeano-Gomez
Author-X-Name-First: Emilio
Author-X-Name-Last: Galdeano-Gomez
Title: Productivity effects of environmental performance: evidence from TFP analysis on marketing cooperatives
Abstract:
The object of the present article is to offer a decomposition of
productivity indices incorporating environmental changes. The model
followed is an input oriented approach related to undesirable output
(environmental performance attribute) in horticultural marketing
cooperatives. This study is motivated by both the lack of analysis of
environmental performance's effects on agribusiness productivity and the
relevance of cooperative firms in the European agricultural model for
attaining sustainability. For this purpose, bootstrapped envelopment
analysis is applied and the best practice frontier obtained corresponds to
decision making units showing the best environmental behaviour. The
Malmquist total factor productivity (TFP) is decomposed into technological
change, efficiency and environmental change. In the second stage, the
correlations of these changes with other management variables of
cooperatives are analysed. The indicators obtained, on one hand, advice
about the nonseparable distance function estimations when the
environmental factor is introduced. On the other hand, the results display
a relevant increase in efficiency and environmental components for the
period under study showing a high influence from labour qualification,
environmental effort and spillover effect in the sector.
Journal: Applied Economics
Pages: 1873-1888
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905266
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905266
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1873-1888
Template-Type: ReDIF-Article 1.0
Author-Name: Machiel van Dijk
Author-X-Name-First: Machiel
Author-X-Name-Last: van Dijk
Author-Name: Michiel Bijlsma
Author-X-Name-First: Michiel
Author-X-Name-Last: Bijlsma
Author-Name: Marc Pomp
Author-X-Name-First: Marc
Author-X-Name-Last: Pomp
Title: The price of free advice
Abstract:
What factors determine how well consumers make their actual choices with
regard to financial products? This article empirically evaluates two
different choices consumers make when buying deferred annuities. One
choice concerns the type of insurance policy, the other concerns the
choice of insurance provider. For both choices, we will analyse what
factors explain the quality of the choice made. In particular, we will
investigate the role of financial advice in the decision-making process.
By combining Dutch consumer survey data and data on quotations by Dutch
life insurance companies, we obtain the following results. First,
respondents who buy their policy directly from an insurer attain a
significantly better match between their risk preferences and the type of
policy chosen than respondents who purchase their policy through an
insurance broker. Second, respondents who buy their policy through an
insurance broker obtain a significantly lower payout than respondents who
purchased their policy directly from an insurance company. These results
raise doubts about the functioning of both the market for financial advice
and the market for life insurances.
Journal: Applied Economics
Pages: 1889-1903
Issue: 14
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905274
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905274
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Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1889-1903
Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Title: Price flexibility in developing countries: evidence and implications
Abstract:
Using data for a sample of 50 developing countries, the empirical
investigation evaluates determinants and implications of asymmetric price
flexibility. Price inflation is characterized by high flexibility to
adjust towards full equilibrium. Further, price inflation accelerates
flexibly with unanticipated demand growth, in both the upward and downward
directions, in most of the countries under investigation. Asymmetry
indicates higher upward flexibility compared to downward flexibility in
many countries. Aggregate uncertainty determines the degree of asymmetry
such that price flexibility is higher with respect to expansionary demand
shocks, compared to contractionary shocks, the higher the variability of
aggregate demand across countries. In contrast, higher trend price
inflation increases downward price flexibility. Across countries, output
variability decreases with both upward and downward price flexibility in
the face of aggregate demand shocks.
Journal: Applied Economics
Pages: 1905-1918
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905290
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905290
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1905-1918
Template-Type: ReDIF-Article 1.0
Author-Name: Kelvin Balcombe
Author-X-Name-First: Kelvin
Author-X-Name-Last: Balcombe
Author-Name: Iain Fraser
Author-X-Name-First: Iain
Author-X-Name-Last: Fraser
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Author-Name: Mizanur Rahman
Author-X-Name-First: Mizanur
Author-X-Name-Last: Rahman
Author-Name: Laurence Smith
Author-X-Name-First: Laurence
Author-X-Name-Last: Smith
Title: An application of the DEA double bootstrap to examine sources of efficiency in Bangladesh rice farming
Abstract:
In this article we examine sources of technical efficiency for rice
farming in Bangladesh. The motivation for the analysis is the need to
close the rice yield gap to enable food security. We employ the DEA double
bootstrap of Simar and Wilson (2007) to estimate and explain technical
efficiency. This technique overcomes severe limitations inherent in using
the two-stage DEA approach commonly employed in the efficiency literature.
From a policy perspective our results show that potential efficiency gains
to reduce the yield gap are greater than previously found. Statistically
positive influences on technical efficiency are education, extension and
credit, with age being a negative influence.
Journal: Applied Economics
Pages: 1919-1925
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905282
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905282
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1919-1925
Template-Type: ReDIF-Article 1.0
Author-Name: Mousumi Duttaray
Author-X-Name-First: Mousumi
Author-X-Name-Last: Duttaray
Author-Name: Amitava Dutt
Author-X-Name-First: Amitava
Author-X-Name-Last: Dutt
Author-Name: Kajal Mukhopadhyay
Author-X-Name-First: Kajal
Author-X-Name-Last: Mukhopadhyay
Title: Foreign direct investment and economic growth in less developed countries: an empirical study of causality and mechanisms
Abstract:
We examine the causality between foreign direct investment (FDI) and
economic growth for 66 developing countries, taking into account their
interaction with exports and technological change. Time series analysis
for each country is conducted, based on a method introduced by Toda and
Yamamoto (1995) for testing Granger causality in the presence of
nonstationary time series. The main findings of this article are: FDI
causes growth in several of the developing countries, but the mechanism
through which this works differs across countries and reverse causality
from growth to FDI exists for many countries.
Journal: Applied Economics
Pages: 1927-1939
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949231
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949231
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1927-1939
Template-Type: ReDIF-Article 1.0
Author-Name: Diansheng Dong
Author-X-Name-First: Diansheng
Author-X-Name-Last: Dong
Author-Name: Harry Kaiser
Author-X-Name-First: Harry
Author-X-Name-Last: Kaiser
Title: Studying household purchasing and nonpurchasing behaviour for a frequently consumed commodity: two models
Abstract:
A panel data double-hurdle model is developed to analyse household
purchasing behaviour. The model, a time-series extension of Cragg's
conventional double-hurdle model of censored consumption, is able to
account not only for the censored nature of commodity purchases, but also
for the temporal linkage of the purchase process. The panel data
double-hurdle model is compared with the marked renewal model that has
also been used for studying household purchasing behaviour. The empirical
results of the double-hurdle model show that for household milk purchases
hurdle due to noneconomic reasons exists. The results of the marked
purchase renewal model showed that the duration dependence is positive.
Both models fit the data well.
Journal: Applied Economics
Pages: 1941-1951
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949272
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949272
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1941-1951
Template-Type: ReDIF-Article 1.0
Author-Name: M. McKenzie
Author-X-Name-First: M.
Author-X-Name-Last: McKenzie
Title: Privatization and economic growth in Australia: the shorthand of a long process
Abstract:
The impact of privatization on economic growth has been little
investigated relative to disaggregated approaches. A growth accounting
framework is used here to investigate the impact of privatization on
growth for the Australian economy. The contribution of public capital to
the private sector and whether the growth process is endogenous or Solow
is evaluated. Separate measures of public and private capital are computed
in order to estimate their impacts with labour on Australian gross
domestic product (GDP) growth for the period 1960 to 2003. A simple growth
rates version is found preferred by stationarity and other tests. Labour
growth appears to strongly positively influence the growth of GDP. In
contrast, public capital growth has no statistically significant effect on
GDP growth, or on private capital productivity. The data are consistent
with the hypothesis that the coefficients of the growth equation are the
same before and during privatization.
Journal: Applied Economics
Pages: 1953-1967
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600915257
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600915257
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1953-1967
Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Alvarez-Diaz
Author-X-Name-First: Marcos
Author-X-Name-Last: Alvarez-Diaz
Title: Exchange rates forecasting: local or global methods?
Abstract:
Exchange rates forecasters usually assume that local methods (nearest
neighbour) dominate the global ones (neural networks or genetic
programming, for example). In this article, first, we use different
generalizations of the standard nearest neighbours to predict the dynamic
evolution of the Yen/US$ and Pound Sterling/US$ exchange rates one-period
ahead. Second, we compare our results with those employing global methods
such as neural networks, genetic programming, data fusion and evolutionary
neural networks. Finally, we find out the existence of predictable
structures τ periods ahead. Our results reveal a slightly but
significant forecasting ability for one-period ahead which is lost when
more periods ahead are considered, and no important predictive differences
between local and global methods have been found.
Journal: Applied Economics
Pages: 1969-1984
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600905308
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600905308
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1969-1984
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent
Author-X-Name-First: Robert
Author-X-Name-Last: Brent
Title: The role of user fees in the cost-benefit analysis of privatization with an application to inpatient psychiatric services in the US
Abstract:
When there is no asset sale and thus no lump sum revenues to accrue to
the government, one of the major benefits of privatization is then absent.
Because of this, the revenues that were previously obtained from private
clients assume more importance. This article incorporates these client
revenues fully into a cost-benefit framework and applies the framework to
an evaluation of the privatization of psychiatric wards in nonfederal
general hospitals in the United States. We find that the privatization of
psychiatric services in general hospitals would provide a social gain only
if the change took place using for-profit rather than nonprofit hospitals,
a finding that depends crucially on including the excess burden effects of
public revenues.
Journal: Applied Economics
Pages: 1985-1993
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600915265
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600915265
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1985-1993
Template-Type: ReDIF-Article 1.0
Author-Name: Amit Ghosh
Author-X-Name-First: Amit
Author-X-Name-Last: Ghosh
Author-Name: Saumik Paul
Author-X-Name-First: Saumik
Author-X-Name-Last: Paul
Title: Opening the Pandora's box? Trade openness and informal sector growth
Abstract:
This article constructs a labour transition model combining the features
of job loss and job creation in the formal sector of an economy. The
theoretical model examines the impact of trade liberalization on net job
transition from formal to informal sector. In the light of our model we
establish certain pre-conditions based on simulations under which trade
liberalization is accompanied by rising informal sector. The model outcome
conforms to the empirical evidence of rising informality with openness
which we find in 18 Central Eastern European and Former Soviet Union
countries.
Journal: Applied Economics
Pages: 1995-2007
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600915273
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600915273
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:1995-2007
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Olivares
Author-X-Name-First: Jose
Author-X-Name-Last: Olivares
Title: Rear-view-mirror driving in defined contribution systems: the strange formula of the Chilean pension funds
Abstract:
The pioneering regulation on Chilean pension funds under Defined
Contribution program requires private managing institutions to exclusively
manage individual accounts and meet a minimum return to their clients. The
purpose of this study is to empirically investigate the investment
behaviour of pension funds and to contribute to the Social Security
debate. The findings reveal the benchmark significantly explains funds'
performance. Pension funds tend to replicate their asset allocations to
exhibit similarities in returns. We believe the obligation on fund
managers to attain a minimum guaranteed return, based on relative
performance evaluation, encourages them not to deviate from the industry's
performance; indeed, the benchmark explains most of the group performance.
To hold similar allocations, managers may monitor each others through
their investment style.
Journal: Applied Economics
Pages: 2009-2019
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600936345
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600936345
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:2009-2019
Template-Type: ReDIF-Article 1.0
Author-Name: Vladimir Teles
Author-X-Name-First: Vladimir
Author-X-Name-Last: Teles
Author-Name: Joaquim Andrade
Author-X-Name-First: Joaquim
Author-X-Name-Last: Andrade
Title: Monetary policy and country risk
Abstract:
This article develops an econometric model in order to study country risk
behaviour for six emerging economies (Argentina, Mexico, Russia, Thailand,
Korea and Indonesia), by expanding the country beta risk model of Harvey
and Zhou (1993), Erb et al. (1996a, b) and Gangemi et al. (2000). Towards
this end, we have analysed the impact of macroeconomic variables,
especially monetary policy, upon country risk, by way of a time-varying
parameter approach. The results indicate an unstable effect of monetary
policy upon country risk in periods of crisis. However, this effect is
stable in other periods, and the Favero-Giavazzi effect is not verified
for all economies, with an opposite effect being observed in many cases.
Journal: Applied Economics
Pages: 2021-2028
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949249
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949249
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:2021-2028
Template-Type: ReDIF-Article 1.0
Author-Name: Goksel Armagan
Author-X-Name-First: Goksel
Author-X-Name-Last: Armagan
Author-Name: Cuma Akbay
Author-X-Name-First: Cuma
Author-X-Name-Last: Akbay
Title: An econometric analysis of urban households' animal products consumption in Turkey
Abstract:
People in developing countries are increasing their consumption from the
very low levels of the past, and they have a long way to go before coming
near developed country averages. In this study, households' animal
products consumption patterns are analysed by using Linear Approximation
of Almost Ideal Demand System (LA/AIDS) and survey data collected from
households in urban areas in Turkey. According to the results of the
study, annual per capita consumption of animal products were 48.18 kg for
milk, 26.89 kg for yogurt, 18.55 kg for cheese, 6.45 kg for meat, 22.11 kg
for poultry and 10.05 kg for fish. Price elasticities were found to be
lower than 1 for milk, yogurt, cheese, poultry and fish and higher than 1
for meat. Moreover, the impacts of socio-demographic factors on the demand
for animal products were found to be very low. Determination of production
targets and formulation of polices are possible by obtaining the proper
information related to the livestock products.
Journal: Applied Economics
Pages: 2029-2036
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949256
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949256
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:2029-2036
Template-Type: ReDIF-Article 1.0
Author-Name: Isidoro Guzman
Author-X-Name-First: Isidoro
Author-X-Name-Last: Guzman
Author-Name: Carmelo Reverte
Author-X-Name-First: Carmelo
Author-X-Name-Last: Reverte
Title: Productivity and efficiency change and shareholder value: evidence from the Spanish banking sector
Abstract:
Productivity change and shareholder value have been analysed in the
banking sector in the last few years, although it should be noted that
these two important aspects have been studied separately. In this regard,
the main contribution of our study is to link these two lines of research
by verifying whether those banks characterized by higher levels of
efficiency and productivity change have a higher shareholder value. To
measure changes in efficiency and productivity we use the Malmquist
nonparametric technique, which is calculated from Data Envelopment
Analysis (DEA) linear programming approach. The Malmquist total factor
productivity index enables separation of the 'catching up' effect, i.e.
changes over time in technical efficiency, from 'technological change',
i.e. the shift of best practice frontier over time due to technological
progress. Our results for a sample of listed Spanish banks in the period
2000 to 2004 confirm that those banks with higher efficiency and
productivity changes have a higher shareholder value, even after
controlling for the impact of traditional measures of performance, such as
return on assets.
Journal: Applied Economics
Pages: 2037-2044
Issue: 15
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949413
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949413
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Handle: RePEc:taf:applec:v:40:y:2008:i:15:p:2037-2044
Template-Type: ReDIF-Article 1.0
Author-Name: Akhter Faroque
Author-X-Name-First: Akhter
Author-X-Name-Last: Faroque
Title: An investigation into the demand for alcoholic beverages in Canada: a choice between the almost ideal and the Rotterdam models
Abstract:
In this article I investigate the historical pattern of interactions in
the demand for three categories of alcoholic beverages in Canada, using
both the differential Almost Ideal and the differential Rotterdam demand
systems. I evaluate these models based on several decision criteria
including model encompassment (based on the J-test), structural stability,
conformity with demand theory and the credibility of the estimated price
and income responses, in an attempt to determine which of these models is
better suited for explaining the demand for alcoholic beverages. The
results reveal that both models satisfy the restrictions of demand theory
and of structural stability but the Rotterdam model is preferable on
grounds of the remaining two criteria.
Journal: Applied Economics
Pages: 2045-2054
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949363
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949363
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2045-2054
Template-Type: ReDIF-Article 1.0
Author-Name: Kelvin Balcombe
Author-X-Name-First: Kelvin
Author-X-Name-Last: Balcombe
Author-Name: Sophia Davidova
Author-X-Name-First: Sophia
Author-X-Name-Last: Davidova
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Title: The use of bootstrapped Malmquist indices to reassess productivity change findings: an application to a sample of Polish farms
Abstract:
This article assesses the extent to which sampling variation affects
findings about Malmquist productivity change derived using data
envelopment analysis (DEA), in the first stage by calculating productivity
indices and in the second stage by investigating the farm-specific change
in productivity. Confidence intervals for Malmquist indices are
constructed using Simar and Wilson's (1999) bootstrapping procedure. The
main contribution of this article is to account in the second stage for
the information in the second stage provided by the first-stage bootstrap.
The DEA SEs of the Malmquist indices given by bootstrapping are employed
in an innovative heteroscedastic panel regression, using a maximum
likelihood procedure. The application is to a sample of 250 Polish farms
over the period 1996 to 2000. The confidence intervals' results suggest
that the second half of 1990s for Polish farms was characterized not so
much by productivity regress but rather by stagnation. As for the
determinants of farm productivity change, we find that the integration of
the DEA SEs in the second-stage regression is significant in explaining a
proportion of the variance in the error term. Although our heteroscedastic
regression results differ with those from the standard OLS, in terms of
significance and sign, they are consistent with theory and previous
research.
Journal: Applied Economics
Pages: 2055-2061
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949264
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949264
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2055-2061
Template-Type: ReDIF-Article 1.0
Author-Name: J. A. Bikker
Author-X-Name-First: J. A.
Author-X-Name-Last: Bikker
Author-Name: M. van Leuvensteijn
Author-X-Name-First: M.
Author-X-Name-Last: van Leuvensteijn
Title: Competition and efficiency in the Dutch life insurance industry
Abstract:
The lack of available prices in the Dutch life insurance industry makes
competition an elusive concept that defies direct observation. Therefore,
this article investigates competition by analysing several factors which
may affect the competitive nature of a market and various indirect
measurement approaches. After discussing various supply and demand factors
which may constitute a so-called tight oligopoly, we establish the
existence of scale economies and the importance of cost X-inefficiency,
since severe competition would force firms to exploit available scale
economies and to reduce X-inefficiencies. Both scale economies and
X-inefficiencies turn out to be substantial, although more or less
comparable to those found for insurers in other countries and to other
financial institutions. Further, we apply the Boone indicator, a novel
approach to measuring the effects of competition. This indicator points to
limited competition in comparison to other sectors in the Netherlands.
Further investigations of submarkets should reveal where policy measures
in order to promote competition might be appropriate.
Journal: Applied Economics
Pages: 2063-2084
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949298
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949298
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2063-2084
Template-Type: ReDIF-Article 1.0
Author-Name: Raul Crespo
Author-X-Name-First: Raul
Author-X-Name-Last: Crespo
Title: Total factor productivity: an unobserved components approach
Abstract:
This work examines the presence of unobserved components in the
time-series of total factor productivity (TFP), which is an idea central
to modern Macroeconomics. The main approaches in both the study of
economic growth and the study of business cycles rely on certain
properties of the different components of the time-series of TFP. In the
study of economic growth, the Neoclassical growth model explains growth in
terms of technical progress as measured by the secular component of TFP.
While in the study of business cycles, the Real Business Cycle approach
explains short-run fluctuations in the economy as determined by temporary
movements in the production function, which are reflected by the cyclical
component of the time-series of the same variable. The econometric
methodology employed in the estimation of these different components is
the structural time-series approach developed by Harvey (1989), Harvey and
Shephard (1993), and others. An application to the time-series of TFP for
the 1948-2002 US private nonfarm business sector is presented.
Journal: Applied Economics
Pages: 2085-2097
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949314
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949314
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2085-2097
Template-Type: ReDIF-Article 1.0
Author-Name: Herve Queneau
Author-X-Name-First: Herve
Author-X-Name-Last: Queneau
Author-Name: Amit Sen
Author-X-Name-First: Amit
Author-X-Name-Last: Sen
Title: Evidence on the dynamics of unemployment by gender
Abstract:
We present empirical evidence regarding unemployment dynamics for women
and men in eight OECD countries. Unit-root tests are used to examine the
unemployment dynamics of women and men. Failure to reject the unit-root
hypothesis is consistent with unemployment hysteresis. Rejection of the
unit-root hypothesis indicates that unemployment dynamics are best
explained by the natural rate of unemployment or the structuralist view.
We find evidence of gender differences in unemployment dynamics in Canada,
Germany and the US, but not in other countries. While there are some
differences in the extent of persistence across gender and across
countries, the degree of persistence for both female and male unemployment
rates is fairly low in all countries. Our results, therefore, contrast
with substantial empirical evidence of high levels of unemployment
persistence in European countries.
Journal: Applied Economics
Pages: 2099-2108
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949330
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949330
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2099-2108
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Javier de Miguel
Author-X-Name-First: Francisco Javier
Author-X-Name-Last: de Miguel
Author-Name: Antonio Manresa
Author-X-Name-First: Antonio
Author-X-Name-Last: Manresa
Title: Removal of farm subsidies in a regional economy: a computable general equilibrium analysis
Abstract:
The purpose of this article is to analyse the importance of farm
subsidies for the Extremadura economy. To this end, a computable general
equilibrium model for this region is presented, with which we analyse the
economic effects caused by a simulated removal of these subsidies.
Different scenarios involving the labour market rigidities and tax
compensation are considered. Model parameters are determined by the
procedure known as calibration, using a social accounting matrix
constructed for this economy. The results clearly show the negative
effects that this elimination would produce on the main micro and
macroeconomic variables.
Journal: Applied Economics
Pages: 2109-2120
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949371
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949371
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2109-2120
Template-Type: ReDIF-Article 1.0
Author-Name: Naresh Pradhan
Author-X-Name-First: Naresh
Author-X-Name-Last: Pradhan
Author-Name: PingSun Leung
Author-X-Name-First: PingSun
Author-X-Name-Last: Leung
Title: Sea turtle interactions with Hawaii's longline fishery: an extended multi-objective programming model incorporating spatial and seasonal dimensions
Abstract:
Endangered and protected sea turtle interactions with the pelagic
longline fishery have become an important fishery policy concern recently.
A multi-objective programming model for Hawaii's longline fishery that
incorporated sea turtle interactions (Pradhan and Leung, 2006a) has been
extended with spatial and seasonal dimensions. The synergetic effect of
these added features indicate that there exists better economic and
environmental efficiency gains in terms of higher profit and reduced
turtle interactions, compared to the base case without these added
dimensions, by reconfiguring fishing efforts across space and seasons.
There also exists a trade-off between fleet-wide profit and turtle
interactions. The current fishery policy related to sea turtle
interactions disallows capturing all the potential efficiency gain, as the
number of turtles allowed to get interacted severely limits
swordfish-targeted longline fishing that uses conventional technologies.
Restricting longline fishery to operate sub-optimally would result in
average shadow value of $15 957 and $60 908 per turtle in terms of lost
profit and revenue, respectively. These shadow values are higher than
those estimated from earlier model without the spatial and seasonal
dimensions. Adaptation to 'turtle-friendly' fishing technologies is among
the many strategies that would allow for higher optimal fishing efforts
and also leading to higher overall welfare and towards more responsible
fishery.
Journal: Applied Economics
Pages: 2121-2134
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949355
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949355
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2121-2134
Template-Type: ReDIF-Article 1.0
Author-Name: Huai-I. Lee
Author-X-Name-First: Huai-I.
Author-X-Name-Last: Lee
Author-Name: Min-Hsien Chiang
Author-X-Name-First: Min-Hsien
Author-X-Name-Last: Chiang
Author-Name: Hsinan Hsu
Author-X-Name-First: Hsinan
Author-X-Name-Last: Hsu
Title: A new choice of dynamic asset management: the variable proportion portfolio insurance
Abstract:
The constant proportion portfolio insurance (CPPI) achieves the advantage
of simplicity due to its constant multiple. However, a dynamic multiple
could improve the effectiveness of portfolio management. In this article,
we provide a complete and detailed examination of the mechanism of
variable proportion portfolio insurance (VPPI) strategy. The multiple of
the VPPI states that when the stock price goes up, the multiple gets
larger accordingly and when the stock price goes down, the multiple gets
smaller. A portfolio insurance strategy with this discipline could yield
better performance. Based on this principle, we recommend an exponential
proportion portfolio insurance (EPPI). In addition, we also propose a new
performance measure for portfolio insurance. Compared with the CPPI,
simulation and empirical evidence support that the EPPI works better in
both upside capture and downside protection, implying that the EPPI could
be an effective tool for asset management.
Journal: Applied Economics
Pages: 2135-2146
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949280
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949280
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2135-2146
Template-Type: ReDIF-Article 1.0
Author-Name: Ensar Yilmaz
Author-X-Name-First: Ensar
Author-X-Name-Last: Yilmaz
Author-Name: Alovsat Muslumov
Author-X-Name-First: Alovsat
Author-X-Name-Last: Muslumov
Title: Deposit insurance and moral hazard problem: the case of Turkish banking system
Abstract:
We investigate the effect of full deposit insurance introduced in 1994 on
the financial performance of Turkish commercial banks. We construct a
model, under reasonable assumptions, with deposit insurance where banks
undertake excessive risk - moral hazard risk. Empirical investigation
using experimental design approach supports our moral hazard hypothesis.
Our findings indicate that banks subject to the moral hazard behaviour
show significant increases in foreign exchange position risk and
deterioration in capital adequacy relative to their benchmark after
introduction of full deposit insurance system. We relate this excessive
risk-taking to the moral hazard behaviour by commercial banks. The
research results indicate that complete deposit insurance system distorts
the incentive structure of commercial banks and thus, prevents proper
functioning of market discipline mechanism and leads to the taking
excessive risk-taking.
Journal: Applied Economics
Pages: 2147-2163
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949306
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949306
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2147-2163
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: Eray Yucel
Author-X-Name-First: Eray
Author-X-Name-Last: Yucel
Title: Effects of USD-Euro parity on a small open economy: evidence from Turkey
Abstract:
This study assesses the effect of USD-Euro parity on a small open economy
where exports are predominantly denominated in Euros and imports are
denominated in USD. Empirical evidence from Turkey suggests that a
positive change in the USD value of the Euro appreciates the local
currency, decreases inflation and increases output.
Journal: Applied Economics
Pages: 2165-2174
Issue: 16
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949322
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949322
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Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2165-2174
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Tasci
Author-X-Name-First: Hakan
Author-X-Name-Last: Tasci
Title: Dual representation and its online scheduling method for event-varying DESs with capacity constraints
Abstract:
This article presents a small open economy model which is a part of the
world that consists of a continuum of infinitesimal open economies. New
Keynesian Investment Saving Line (IS) and Phillips curves are derived for
the small open economy and the rest of the world. For five different
policies, (i.e. domestic inflation targeting, consumer price index (CPI)
inflation targeting, exchange rate peg, domestic inflation Taylor rule and
CPI inflation Taylor rule) the effects of domestic and world technology
shocks are analysed. The degree of openness is discussed and the effect of
openness is addressed by comparing the impulse responses of a small open
economy and closed economy that face productivity shocks.
Journal: Applied Economics
Pages: 2175-2190
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949462
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949462
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2175-2190
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Busato
Author-X-Name-First: Francesco
Author-X-Name-Last: Busato
Author-Name: Bruno Chiarini
Author-X-Name-First: Bruno
Author-X-Name-Last: Chiarini
Author-Name: Elisabetta Marzano
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Marzano
Title: Consumption and income smoothing
Abstract:
This article presents a two-sector dynamic general equilibrium model in
which income smoothing takes place within the households
(intra-temporally), and consumption smoothing takes place among the
households (inter-temporally). Idiosyncratic risk-sharing within the
family is based on an income smoothing contract. There are two-sectors in
the model, the regular sector and the underground sector, and the
smoothing comes from the underground sector, which is countercyclical with
respect to aggregate GDP. The article shows that the simulated
disaggregated consumption and income series (that are the regular and
underground consumption flows) are more sensitive to exogenous changes in
sector-specific productivity and tax rates than regular and underground
income flows, and that this picture is reversed when the aggregate series
are considered.
Journal: Applied Economics
Pages: 2191-2207
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949348
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949348
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2191-2207
Template-Type: ReDIF-Article 1.0
Author-Name: Aude Hubrecht-Deville
Author-X-Name-First: Aude
Author-X-Name-Last: Hubrecht-Deville
Author-Name: Herve Leleu
Author-X-Name-First: Herve
Author-X-Name-Last: Leleu
Title: Impact of trade area environment on bank's comparative advantages
Abstract:
This article analyses the relationship between the comparative advantages
of bank branches and the trade area environment. Bank branches are points
of sale whose trade environment influences their activities and
performance. Comparative advantages are defined, for each output mix, by
the strict dominance of a production technology in a specific trade area
over the production technologies of other environments. Using Shephard's
output distance functions on a sample of 728 bank branches, we compare the
production technologies for different output mixes and different trade
environments. We show that none of the production technologies strictly
dominates the others and none of them is strictly dominated. Therefore,
each trade area benefits from comparative advantages that we try to
highlight. Finally, we evaluate the performance of the central banks
regarding their ability to provide the right incentives on output mixes to
their bank branches so that the latter may benefit from their comparative
advantages.
Journal: Applied Economics
Pages: 2209-2219
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949389
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949389
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2209-2219
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Bertrand
Author-X-Name-First: Olivier
Author-X-Name-Last: Bertrand
Author-Name: Habib Zitouna
Author-X-Name-First: Habib
Author-X-Name-Last: Zitouna
Title: Domestic versus cross-border acquisitions: which impact on the target firms' performance?
Abstract:
This article investigates the effects of horizontal acquisitions on the
performance of target firms in the 1990s. Using French manufacturing
firm-level data, we examine two main indicators of performance: the profit
and the productive efficiency. We distinguish domestic from cross-border
acquisitions. To evaluate the impact of take-overs, we implement
appropriate difference-in-difference estimation techniques associated to a
matching propensity score procedure. We find that Mergers & Acquisitions
(M&A) do not increase the profit of French target firms, even on the long
run. However, they clearly raise the productivity of target firms. These
results suggest that firms probably redistribute efficiency gains at the
upstream and/or downstream production stage. There is no evidence of an
increase in market power. In addition, the consequences of domestic and
cross-border M&A significantly differ. Efficiency gains are stronger for
cross-border M&A. This conclusion is however true only for extra-European
Union operations. The achievement in the European economic integration
certainly explains the absence of difference between European and domestic
acquisitions. Finally, our results cast some doubt on the frequent
discrimination attitude towards foreign takeovers and the fears of their
impact on firms' performance and the host country's welfare.
Journal: Applied Economics
Pages: 2221-2238
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949397
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949397
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2221-2238
Template-Type: ReDIF-Article 1.0
Author-Name: Lena Lindahl
Author-X-Name-First: Lena
Author-X-Name-Last: Lindahl
Title: Do birth order and family size matter for intergenerational income mobility? Evidence from Sweden
Abstract:
Previous studies of intergenerational income mobility have not considered
potential birth-order or family-size effects in the estimated income
elasticity. This article uses a large sample of individuals born between
1962 and 1964; income elasticities with respect to parents' incomes are
estimated for individuals with different birth-order positions and family
sizes. Results based on labour income and total income for sons and
daughters are reported separately. The elasticity tends to decrease with
family size as well as with birth order for a given family size,
especially in the labour-income analysis of fathers and sons.
Journal: Applied Economics
Pages: 2239-2257
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949421
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949421
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2239-2257
Template-Type: ReDIF-Article 1.0
Author-Name: Maritta Paloviita
Author-X-Name-First: Maritta
Author-X-Name-Last: Paloviita
Title: Comparing alternative Phillips curve specifications: European results with survey-based expectations
Abstract:
This article examines inflation dynamics in Europe. Econometric
specification tests with pooled European data are used to compare the
empirical performance of the New Classical, New Keynesian and Hybrid
specifications of the Phillips curve. Instead of imposing any specific
form of expectations formation, direct measures, i.e. Consensus Economics
survey data are used to proxy economic agents' inflation expectations.
According to the results, the New Classical Phillips curve has
satisfactory statistical properties. Moreover, the purely forward-looking
New Keynesian Phillips curve is clearly outperformed by the New Classical
and Hybrid Phillips curves. We interpret our results as indicating that
the European inflation process is not purely forward looking and inflation
cannot instantaneously adjust to changes in expectations. Consequently,
even allowing for possible nonrationality in expectations results in a
lagged inflation term entering the New Keynesian Phillips curve for
inflation dynamics in Europe.
Journal: Applied Economics
Pages: 2259-2270
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949439
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949439
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2259-2270
Template-Type: ReDIF-Article 1.0
Author-Name: Diego Romero-Avila
Author-X-Name-First: Diego
Author-X-Name-Last: Romero-Avila
Title: A confirmatory analysis of the unit root hypothesis for OECD consumption-income ratios
Abstract:
This article investigates the existence of a unit root in the
consumption-income ratio for a sample of 23 OECD countries over the period
1960 to 2005. For that purpose, we first use recently developed unit root
tests with good size and power. Second, we employ the more powerful panel
unit root tests of Pesaran (2003) and Smith et al. (2004) that take the
null of nonstationarity and a bootstrap version of the test of Hadri
(2000) that takes stationarity as the null hypothesis. Overall, our
confirmatory analysis renders clear-cut evidence that OECD
consumption-income ratios contain a unit root.
Journal: Applied Economics
Pages: 2271-2278
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949447
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949447
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2271-2278
Template-Type: ReDIF-Article 1.0
Author-Name: Pi-Fem Hsu
Author-X-Name-First: Pi-Fem
Author-X-Name-Last: Hsu
Title: Sources of employment fluctuations in Taiwan's industries and regions
Abstract:
This empirical study explores the sources of employment fluctuations in
Taiwan's industries and regions over the period 1978 to 2004. The
quarterly growth rates of employment in nine industries and four regions
are modelled with a structural vector autoregression (VAR), and the
employment shocks are measured by VAR residuals. The covariance matrix of
the VAR residuals is decomposed using system estimation method that
selects the parameters to make the error model close to the covariance
matrix and, in turn, to estimate the relative importance of national as
well as industry-specific and region-specific shocks. The empirical
results show that industry-specific shocks account for the major
fluctuations in industries and regions. On average, about 83.95% of an
industry's cyclical variations and 56.28% of the volatility in a region
may be attributed to industry-specific shocks. National shocks account for
little employment volatility in industries. Only the finance and personal
service industries are highly sensitive to national shocks.
Journal: Applied Economics
Pages: 2279-2293
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949454
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2279-2293
Template-Type: ReDIF-Article 1.0
Author-Name: Elif Akbostancı
Author-X-Name-First: Elif
Author-X-Name-Last: Akbostancı
Author-Name: G. Ipek Tunc
Author-X-Name-First: G.
Author-X-Name-Last: Ipek Tunc
Author-Name: Serap Turut-Asık
Author-X-Name-First: Serap
Author-X-Name-Last: Turut-Asık
Title: Environmental impact of customs union agreement with EU on Turkey's trade in manufacturing industry
Abstract:
In this study, we analyse Turkey's manufacturing industry trade by
estimating sectoral import and export demand equations for 1980-2000. The
study aims to understand whether the trade in the manufacturing industry
complies with pollution haven hypothesis, and whether the free trade
environment provided by the customs union (CU) agreement altered the trade
pattern of the clean and dirty industries. Results of our econometric
models have shown that while CU positively affects the import demand, it
does not have any significant impact on the export demand of Turkish
manufacturing industry. In terms of the environmental impact, distinction
between clean and dirty industries turns out to be significant for both
import and export demand. In general, our findings suggest that both clean
and dirty industries' import demand increased during the study period. In
terms of export demand, clean industries' export demand declines whereas
dirty industries' export demand increases compared to the total demand.
Journal: Applied Economics
Pages: 2295-2304
Issue: 17
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949405
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949405
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Handle: RePEc:taf:applec:v:40:y:2008:i:17:p:2295-2304
Template-Type: ReDIF-Article 1.0
Author-Name: Darold Barnum
Author-X-Name-First: Darold
Author-X-Name-Last: Barnum
Author-Name: John Gleason
Author-X-Name-First: John
Author-X-Name-Last: Gleason
Title: Bias and precision in the DEA two-stage method
Abstract:
In Data Envelopment Analysis (DEA), the two-stage method is a popular
procedure for accounting for exogenous influences on efficiency. With the
conventional two-stage method, a DEA is first conducted using only
traditional (endogenous) inputs and outputs. Then, the first-stage DEA
scores are regressed on the environmental/contextual (exogenous) inputs of
interest. The regression outcomes are used to identify exogenous inputs
that influence the first-stage DEA scores to a statistically significant
degree, and to adjust DEA scores to account for these influences. Herein,
it is demonstrated empirically that the conventional method exhibits
substantial bias and low precision, with the degree of bias and precision
affected by input variance and correlation. A reverse two-stage procedure
that yields estimates without the bias and precision problems that
compromise the validity of the conventional method's estimates is
suggested.
Journal: Applied Economics
Pages: 2305-2311
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949470
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949470
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2305-2311
Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Hinloopen
Author-X-Name-First: Jeroen
Author-X-Name-Last: Hinloopen
Author-Name: Charles van Marrewijk
Author-X-Name-First: Charles
Author-X-Name-Last: van Marrewijk
Title: Empirical relevance of the Hillman condition for revealed comparative advantage: 10 stylized facts
Abstract:
The theoretically necessary and sufficient condition for the
correspondence between 'revealed' comparative advantage and pre-trade
relative prices derived by Hillman (1980) is analysed empirically for
virtually all countries of the world over an extended period of time. This
yields 10 stylized facts, including that (i) violations of the Hillman
condition are small as a share of the number of observations, but
substantial as a share of the value of world exports, (ii) violations
occur relatively frequently in the period 1970-1984 and more rarely in the
period 1985-1997 and (iii) violations occur foremost in primary product
and natural resource intensive sectors and for countries in Africa, the
Middle East, Latin America and Central and Eastern Europe. An additional
bonus of verifying the Hillman condition in empirical research is its
ability to identify erroneously classified trade flows.
Journal: Applied Economics
Pages: 2313-2328
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949488
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949488
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2313-2328
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Nicita
Author-X-Name-First: Alessandro
Author-X-Name-Last: Nicita
Title: Price elasticities and tax reform in Mexico
Abstract:
Price responses are usually estimated for the average household. However,
different households are unlikely to respond in a similar way to movement
in prices. Consequently, relying on averages may be misleading when
examining the behaviour of a particular group of households such as the
poor. This article uses six household surveys collected in Mexico between
1989 and 2000 to derive price responses for 10 product groups and for five
levels of income households. The estimated price elasticities are then fed
into a micro simulation model to measure the effect of a marginal tax
reform. The results find that that poorer households tend to react
substantially more to movement in prices, suggesting the usefulness of
estimating elasticities that reflect the behavioural responses of the poor
rather than of the entire population. The micro simulation results
indicate that reducing the taxes on maize, alcoholic beverages and
vegetables would be both more equitable and more efficient in terms of
social welfare. Meanwhile, a reduction in the tax on legumes, sugar, and
oils and fats, while inefficient, would contribute to reduce inequality.
Journal: Applied Economics
Pages: 2329-2335
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970104
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970104
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2329-2335
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Fuss
Author-X-Name-First: Catherine
Author-X-Name-Last: Fuss
Author-Name: Philip Vermeulen
Author-X-Name-First: Philip
Author-X-Name-Last: Vermeulen
Title: Firms' investment decisions in response to demand and price uncertainty
Abstract:
We investigate the effect of demand and price uncertainty on firms'
planned and realized investment from a panel of manufacturing firms.
Uncertainty measures are derived from firms' own expectations about demand
and prices and firm's sales. We find that demand uncertainty at the time
of planning depresses planned and subsequent realized investment. Firms do
not revise their plans due to demand uncertainty at the time of spending,
suggesting that reducing demand uncertainty will only have lagged effects
on investment. We do not find any effect of price uncertainty. Our results
are consistent with the behaviour of monopolistic firms with irreversible
capital.
Journal: Applied Economics
Pages: 2337-2351
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600959909
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600959909
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2337-2351
Template-Type: ReDIF-Article 1.0
Author-Name: Florian Hoppner
Author-X-Name-First: Florian
Author-X-Name-Last: Hoppner
Author-Name: Christian Melzer
Author-X-Name-First: Christian
Author-X-Name-Last: Melzer
Author-Name: Thorsten Neumann
Author-X-Name-First: Thorsten
Author-X-Name-Last: Neumann
Title: Changing effects of monetary policy in the US-evidence from a time-varying coefficient VAR
Abstract:
We estimate a time-varying coefficient VAR model for the US economy to
analyse (i) if the effect of monetary policy on output has been changing
systematically over time, and (ii) if monetary policy has asymmetric
effects over the business cycle. We find that the impact of monetary
policy shocks has been gradually declining over the sample period (1962 to
2002), as some theories of the monetary transmission mechanism imply. In
addition, our results indicate that the effects of monetary policy are
greater in a recession than in a boom.
Journal: Applied Economics
Pages: 2353-2360
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970112
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970112
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2353-2360
Template-Type: ReDIF-Article 1.0
Author-Name: Takaaki Aoki
Author-X-Name-First: Takaaki
Author-X-Name-Last: Aoki
Title: Some aspects on regional integration, comparative advantage and consumer's diversity
Abstract:
This article describes one simple Cournot oligopoly model with linear
inverse demand and international linkage, and tries to analyse how the
degree of competitiveness, the diversity in comparative advantage,
consumer preference and market volume are closely interrelated with each
other in the course of free trade areas (FTA) liberalization. The
influence of income/substitution effects to firm's profit maximization is
also examined. My analysis shows some basic results and implications
regarding the tariff-setting strategies and the incentive for endogenous
internal liberalization, as well as the role of FTA formation on a stream
to world-wide liberalization.
Journal: Applied Economics
Pages: 2361-2368
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970120
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970120
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2361-2368
Template-Type: ReDIF-Article 1.0
Author-Name: Kristien Werck
Author-X-Name-First: Kristien
Author-X-Name-Last: Werck
Author-Name: Mona Grinwis Plaat Stultjes
Author-X-Name-First: Mona Grinwis Plaat
Author-X-Name-Last: Stultjes
Author-Name: Bruno Heyndels
Author-X-Name-First: Bruno
Author-X-Name-Last: Heyndels
Title: Budgetary constraints and programmatic choices by Flemish subsidized theatres
Abstract:
We analyse programmatic choices of Flemish theatres and examine how they
are affected by the theatres' budgetary situation. Following Lancaster's
characteristics approach, we identify several output characteristics of
individual Flemish theatres during the period 1980 to 2000. A simultaneous
equation approach is used to capture the theatre managers', subsidizing
government's and consumers' behaviour. We find that changes in the
budgetary situation of a theatre are translated into changes of both the
'amount' and the nature of the theatre's output. The budgetary impact on
artistic choices has intensified since the introduction of a 4-yearly
instead of yearly allocation of subsidies. The decrease in financial risk
for the individual theatres leads to an increase in artistic risk-taking.
Journal: Applied Economics
Pages: 2369-2379
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970153
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970153
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2369-2379
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Hillebrand
Author-X-Name-First: Eric
Author-X-Name-Last: Hillebrand
Author-Name: Faik Koray
Author-X-Name-First: Faik
Author-X-Name-Last: Koray
Title: Interest rate volatility and home mortgage loans
Abstract:
The US economy has experienced substantial fluctuations in real and
nominal interest rates since the 1970s. This article investigates
empirically the relationship between home mortgage loans and volatility in
mortgage rates for the period 1971:02 to 2003:03. Contrary to common
wisdom, we find a positive relationship between mortgage rate volatility
and home mortgage loans. Further investigation indicates that this is due
to volatility in the bond market. In times of high interest volatility,
households disinvest in government securities and invest in real assets,
which yields a positive relationship between mortgage rate volatility and
home mortgage loans.
Journal: Applied Economics
Pages: 2381-2385
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949538
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949538
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2381-2385
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Arrazola
Author-X-Name-First: Maria
Author-X-Name-Last: Arrazola
Author-Name: Jose de Hevia
Author-X-Name-First: Jose de
Author-X-Name-Last: Hevia
Title: A simple inflation indicator for the euro zone
Abstract:
This article proposes and estimates an inflation indicator for the
European Monetary Union (EMU). This indicator is set up so that it is
contemporarily not affected by the changes in price differentials among
EMU countries. The results show that the Monetary Union Index of Consumer
Prices (MUICP), which is the inflation measure that the European Central
Bank (ECB) takes as a reference for monetary policy purposes, could be
understating the value of the inflation in the euro zone. It is also
concluded that regional peculiarities are fundamental in the evolution of
prices in the different EMU countries.
Journal: Applied Economics
Pages: 2387-2394
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600959917
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600959917
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2387-2394
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer
Author-X-Name-First: Richard
Author-X-Name-Last: Thalheimer
Author-Name: Mukhtar Ali
Author-X-Name-First: Mukhtar
Author-X-Name-Last: Ali
Title: Table games, slot machines and casino revenue
Abstract:
The main focus of this study is to assess the influence of table games on
slot machine and total casino revenues. The subjects of the analysis are
24 rierboat casinos in the midwestern states of Illinois, Iowa and
Missouri and three racinos in Iowa. A racino is a parimutuel racetrack
which also offers slot machine gaming to its customers. Two econometric
models were developed, one for slot machine revenue and one for total
(slot machine plus table game) revenue at riverboats and racinos. Of
particular interest is the effect on slot machine and total revenue of
adding table games to the gaming operation. Slot machine revenue was found
to increase with the number of slot machines and decrease with the number
of table games. Slot machine revenue was estimated to decrease by 11.5% in
the presence of 40 table games, the mean number of table games over the
sample. Total win was found to increase with an increase in both slot
machines and table games. The elasticity of total win with respect to the
number of slot machines and table games was estimated to be 0.786 and
0.219, respectively. Total revenue was estimated to increase by 24.5% for
an additional 40 table games.
Journal: Applied Economics
Pages: 2395-2404
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600959891
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600959891
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2395-2404
Template-Type: ReDIF-Article 1.0
Author-Name: Keith F. Gilsdorf
Author-X-Name-First: Keith
Author-X-Name-Last: F. Gilsdorf
Author-Name: Vasant Sukhatme
Author-X-Name-First: Vasant
Author-X-Name-Last: Sukhatme
Title: Tournament incentives and match outcomes in women's professional tennis
Abstract:
Our research examines the effect of prize money differentials in women's
professional tennis tournaments on the probability that the favoured
player wins the match. This study adds to the existing literature on
tournament theory through its focus on Rosen's (1986) elimination-style,
match play tournament model. We estimate a standard probit model using a
unique data set containing detailed information on prize money,
player-specific characteristics, and match play outcomes for all
tournaments played during the 2004 tour sponsored by the Women's Tennis
Association (WTA). Our results support predictions by Rosen's tournament
model. Larger prize money differentials have a positive, statistically
significant effect on the favoured player's probability of winning the
match. In addition, the number of stages remaining has a significant,
negative effect on winning, consistent with tournament theory predictions
associated with the number of contestants in a tournament.
Journal: Applied Economics
Pages: 2405-2412
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949512
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949512
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2405-2412
Template-Type: ReDIF-Article 1.0
Author-Name: Lin Lin
Author-X-Name-First: Lin
Author-X-Name-Last: Lin
Author-Name: Hsien-Chang Kuo
Author-X-Name-First: Hsien-Chang
Author-X-Name-Last: Kuo
Author-Name: I-Liang Lin
Author-X-Name-First: I-Liang
Author-X-Name-Last: Lin
Title: Merger and optimal number of firms: an integrated simulation approach
Abstract:
In a market where imperfect competition occurs as a result of mergers,
this study proposes a framework consisting of both efficiency and risk
analyses that allow the simulation of pro forma mergers and hence the
determination of the optimal number of firms in the industry. This is
valuable policy information for regulators concerned with possible
intervention in the case of competition and anti-trust violations, and
also for business managers seeking acquisition targets. The framework is
applied to the banking industry in Taiwan. Results reveal the potential
for industrial restructuring in a sector where the optimal number of Bank
Holding Companies (BHCs) is between four and six, subject to whether
partial control is assumed.
Journal: Applied Economics
Pages: 2413-2421
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949504
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949504
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2413-2421
Template-Type: ReDIF-Article 1.0
Author-Name: Ferda Halicioglu
Author-X-Name-First: Ferda
Author-X-Name-Last: Halicioglu
Title: The J-curve dynamics of Turkey: an application of ARDL model
Abstract:
This article seeks an empirical evidence for the existence of the J-curve
phenomenon both in the short-run and long-run for Turkey over the period
1980-2005. The bounds testing cointegration approach is employed to
estimate the trade balance model. An augmented form of Granger causality
analysis is implemented between trade balance, real effective exchange
rates, foreign income and domestic income. The stability of the short-run
as well as long-run coefficients in the trade balance model is tested too.
The empirical results that the J-curve phenomenon is supported only in the
short-run. Whilst causality tests reveal mix results, the parameter
stability tests seem to be inconclusive.
Journal: Applied Economics
Pages: 2423-2429
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949496
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949496
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2423-2429
Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Neves Sequeira
Author-X-Name-First: Tiago Neves
Author-X-Name-Last: Sequeira
Author-Name: Paulo Macas Nunes
Author-X-Name-First: Paulo
Author-X-Name-Last: Macas Nunes
Title: Does tourism influence economic growth? A dynamic panel data approach
Abstract:
On average, tourism-specialized countries grow more than others. This is
not consistent with the core of modern economic growth theory that
suggests that economic growth is linked to sectors with high-tech
intensity and large scale. In this article, we use appropriate panel data
methods to study the relationship between tourism and economic growth. In
general, we show that tourism is a positive determinant of economic growth
both in a broad sample of countries and in a sample of poor countries.
However, contrary to previous contributions, tourism is not more relevant
in small countries than in a general sample.
Journal: Applied Economics
Pages: 2431-2441
Issue: 18
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600949520
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600949520
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Handle: RePEc:taf:applec:v:40:y:2008:i:18:p:2431-2441
Template-Type: ReDIF-Article 1.0
Author-Name: Xose Rodriguez
Author-X-Name-First: Xose
Author-X-Name-Last: Rodriguez
Author-Name: Julio Pallas
Author-X-Name-First: Julio
Author-X-Name-Last: Pallas
Title: Determinants of foreign direct investment in Spain
Abstract:
This study utilizes panel data as a means of examining the determinants
of foreign direct investment (FDI) in Spain. Data that are taken in the
period 1993-2002 are used in order to estimate the determinants of FDI, at
the sectoral level, by differentiating the manufacturing sectors, and at
the regional level. The analysis investigates the sectoral, regional and
macroeconomic variables that have successfully attracted FDI inflows from
those that have not. Empirical results suggest that the differential
between labour productivity and the cost of labour has been an important
determinant of FDI in Spain during the period 1993-2002. Factors related
to demand, the evolution of human capital, the export potential of the
sectors and certain macroeconomic determinants that measure the
differential between Spain and the European Union average, also play a
very important role in attracting flows of FDI. Certain policy issues that
are relevant to the results are also discussed.
Journal: Applied Economics
Pages: 2443-2450
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840701367606
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367606
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2443-2450
Template-Type: ReDIF-Article 1.0
Author-Name: Ignacio Abasolo
Author-X-Name-First: Ignacio
Author-X-Name-Last: Abasolo
Author-Name: Aki Tsuchiya
Author-X-Name-First: Aki
Author-X-Name-Last: Tsuchiya
Title: Understanding preference for egalitarian policies in health: are age and sex determinants?
Abstract:
This article presents an empirical assessment of the relevance of
different factors when understanding preferences for outcome-egalitarian
policies in health, in particular respondent age and sex. A representative
sample of the Spanish population was interviewed (n = 1209). After being
informed that those from the higher social class have longer life
expectancy at birth than those from the lower social class, respondents
were required to choose between two programmes: to increase life
expectancy of the two groups by the same amount (the 'distribution
neutral' programme); and to target the lowest social class group, thereby
reducing current health inequalities (the 'targeting' or 'egalitarian'
programme). Two variants, one with and the other without visual aid, are
used. Majority (69%) of respondents support targeting. An effect of age
was observed, where younger and older individuals are less likely to
target the egalitarian policy than those in middle age. However,
individual's sex was not associated with targeting behaviour. In addition,
right-wingers or/and individuals living in a high per capita income region
are less likely to target. On the other hand, neither individual's
education nor household income has a significant impact on targeting.
Finally, regarding the two variants, results suggest that the visual aid
is associated with less targeting.
Journal: Applied Economics
Pages: 2451-2461
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993940
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993940
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2451-2461
Template-Type: ReDIF-Article 1.0
Author-Name: David Aristei
Author-X-Name-First: David
Author-X-Name-Last: Aristei
Author-Name: Luca Pieroni
Author-X-Name-First: Luca
Author-X-Name-Last: Pieroni
Title: A double-hurdle approach to modelling tobacco consumption in Italy
Abstract:
This article analyzes the determinants of tobacco expenditures for a
sample of Italian households. A Box-Cox double-hurdle model adjusted for
heteroscedasticity is estimated to account for separate individual
decisions concerning smoking participation and tobacco consumption and to
correct for nonnormality in the bivariate distribution of the error terms.
Nested univariate and bivariate models are found to be excessively
restrictive, supporting the adequacy of a generalized specification.
Estimation results show that consumption decisions are significantly
affected by income and demographic characteristics. In particular, income
positively impacts tobacco expenditure, while participation probability
substantially declines as age increases. The existence of significant
gender differences in both smoking participation and tobacco consumption
patterns is found, while high education and white-collar occupation
reduces the likelihood to smoke and tobacco expenditure levels. Single
adult households have a lower probability of smoking initiation even if,
conditional on smoking, they consume more. Finally, complementarity
between tobacco and alcohol beverages suggests the necessity of joint
public health strategies.
Journal: Applied Economics
Pages: 2463-2476
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970229
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970229
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2463-2476
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Chami Batista
Author-X-Name-First: Jorge Chami
Author-X-Name-Last: Batista
Title: Competition between Brazil and other exporting countries in the US import market: a new extension of constant-market-shares analysis
Abstract:
This article develops a new extension of the constant-market-shares
model, attributing the gains or losses of market share of an exporter in a
specific market to its competitors. The method is then applied to Brazil's
exports of manufactured products to the US market, determining from which
countries and by how much Brazil gained market share, and to which
countries Brazil lost market share in the period between 1992, 1999 and
2004. The bilateral gains and losses of Brazil to OECD countries are shown
to be related to changes in the relative unit labour costs of these
countries through a two-period panel data analysis.
Journal: Applied Economics
Pages: 2477-2487
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970203
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970203
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2477-2487
Template-Type: ReDIF-Article 1.0
Author-Name: Bhavani Shankar
Author-X-Name-First: Bhavani
Author-X-Name-Last: Shankar
Author-Name: Richard Bennett
Author-X-Name-First: Richard
Author-X-Name-Last: Bennett
Author-Name: Stephen Morse
Author-X-Name-First: Stephen
Author-X-Name-Last: Morse
Title: Production risk, pesticide use and GM crop technology in South Africa
Abstract:
Technology involving genetic modification of crops has the potential to
make a contribution to rural poverty reduction in many developing
countries. Thus far, pesticide-producing Bacillus thuringensis (Bt)
varieties of cotton have been the main GM crops under cultivation in
developing nations. Several studies have evaluated the farm-level
performance of Bt varieties in comparison to conventional ones by
estimating production technology, and have mostly found Bt technology to
be very successful in raising output and/or reducing pesticide input.
However, the production risk properties of this technology have not been
studied, although they are likely to be important to risk-averse
smallholders. This study investigates the output risk aspects of Bt
technology by estimating two 'flexible risk' production function models
allowing technology to independently affect the mean and higher moments of
output. The first is the popular Just-Pope model and the second is a more
general 'damage control' flexible risk model. The models are applied to
cross-sectional data on South African smallholders, some of whom used Bt
varieties. The results show no evidence that a 'risk-reduction' claim can
be made for Bt technology. Indeed, there is some evidence to support the
notion that the technology increases output risk, implying that simple
(expected) profit computations used in past evaluations may overstate true
benefits.
Journal: Applied Economics
Pages: 2489-2500
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970161
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970161
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2489-2500
Template-Type: ReDIF-Article 1.0
Author-Name: Y. -P. Hu
Author-X-Name-First: Y. -P.
Author-X-Name-Last: Hu
Author-Name: L. Lin
Author-X-Name-First: L.
Author-X-Name-Last: Lin
Author-Name: J. -W. Kao
Author-X-Name-First: J. -W.
Author-X-Name-Last: Kao
Title: Time-varying inter-market linkage of international stock markets
Abstract:
As a response to the growing concern on the interconnection of
international stock markets, this study uses the Pena-Box model to capture
time-varying relationship of the returns of 13 stock indices during
1993-2002. The results indicate a dynamic relationship of world major
stock markets over time, which provide new but supplemental evidence on
the conclusion derived from the conventional confirmatory factor analyses
in literature.
Journal: Applied Economics
Pages: 2501-2507
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970146
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2501-2507
Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Diaz-Mora
Author-X-Name-First: Carmen
Author-X-Name-Last: Diaz-Mora
Title: What factors determine the outsourcing intensity? A dynamic panel data approach for manufacturing industries
Abstract:
The present article investigates the determinants of outsourcing
production using a panel of 93 Spanish manufacturing industries for the
period 1993 to 2002. Outsourcing is measured as production tasks which are
contracting out to external suppliers, a more direct and suitable
indicator. After controlling for unobserved heterogeneity and
simultaneity, our results show a high persistence of the outsourcing
intensity. Moreover, outsourcing of production is positively related to
unit labour costs, skills requirements, national ownership and orientation
to international markets. We also find evidence for a negative link
between the outsourcing intensity and the share of small firms.
Journal: Applied Economics
Pages: 2509-2521
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970179
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970179
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2509-2521
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Title: Trend stationary of inflation rates: evidence from LM unit root testing with a long span of historical data
Abstract:
The article applies the LM univariate unit root test recently developed
by Lee and Strazicich (2003, 2004) to re-examine the validity of trend
stationary in the inflation rates of 11 OECD and Asian countries using a
longer span of historical data. Our empirical findings are favourable to
the trend stationary of the inflation rates when we control the structural
breaks in series, and therefore they point to the absence of
hyperinflation in the majority of the countries. The results indicate that
shocks to inflation rates are temporary and soon converge, with the
inflation rates being trend stationary. Hence, most structural breaks in
the inflation rate occur around the Great Depression, World War I, World
War II, and energy shock periods. For the convergence effect, we repeat
the unit root tests utilized above for smaller sub-samples so as to
provide a robust analysis. The outcomes show that by selecting a longer
data span, we can catch more powerful convergent evidence. Overall, some
policy implications are obtained in this article.
Journal: Applied Economics
Pages: 2523-2536
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970138
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2523-2536
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Dell'Anno
Author-X-Name-First: Roberto
Author-X-Name-Last: Dell'Anno
Author-Name: Offiong Helen Solomon
Author-X-Name-First: Offiong Helen
Author-X-Name-Last: Solomon
Title: Shadow economy and unemployment rate in USA: is there a structural relationship? An empirical analysis
Abstract:
This article aims to estimate the size of the US shadow economy (SE)
using a structural equation approach and to evaluate if a structural
relationship exists between the SE and the unemployment rate (UR) in the
United States. The size of the SE is estimated to be decreasing over the
last two decades. We corroborate the existence of a structural
relationship between the SE and the UR by using a simple theoretical
model. Furthermore, we extend the Okun's law to estimate the structural
relationship between growth rate of official GDP, SE and UR. Our results
indicate a significant positive relationship between the SE and the UR.
Journal: Applied Economics
Pages: 2537-2555
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970195
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970195
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2537-2555
Template-Type: ReDIF-Article 1.0
Author-Name: Tatiane Menezes
Author-X-Name-First: Tatiane
Author-X-Name-Last: Menezes
Author-Name: Carlos Azzoni
Author-X-Name-First: Carlos
Author-X-Name-Last: Azzoni
Author-Name: Fernando Silveira
Author-X-Name-First: Fernando
Author-X-Name-Last: Silveira
Title: Demand elasticities for food products in Brazil: a two-stage budgeting system
Abstract:
The object of this article is to estimate demand elasticities for a
basket of staple food important for providing the caloric needs of
Brazilian households. These elasticities are useful in the measurement of
the impact of structural reforms on poverty. A two-stage demand system was
constructed, based on data from Household Expenditure Surveys (POF)
produced by IBGE (The Brazilian Bureau of Statistics) in 1987/88 and
1995/96. We have used panel data to estimate the model, and have
calculated income, own-price, and cross-price elasticities for eight
groups of goods and services and, in the second stage, for 11 sub groups
of staple food products. We estimated those elasticities for the whole
sample of consumers and for two income groups.
Journal: Applied Economics
Pages: 2557-2572
Issue: 19
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970187
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970187
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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2557-2572
Template-Type: ReDIF-Article 1.0
Author-Name: Monazza Aslam
Author-X-Name-First: Monazza
Author-X-Name-Last: Aslam
Author-Name: Geeta Gandhi Kingdon
Author-X-Name-First: Geeta Gandhi
Author-X-Name-Last: Kingdon
Title: Gender and household education expenditure in Pakistan
Abstract:
Pakistan has very large gender gaps in educational outcomes. One
explanation could be that girls receive lower educational expenditure
allocations than boys within the household, but this has never
convincingly been tested. This article investigates whether the
intra-household allocation of educational expenditure in Pakistan favours
males over females. It also explores two different explanations for the
failure of the extant 'Engel curve' studies to detect
gender-differentiated treatment in education even where gender bias is
strongly expected. Using individual level data from the latest household
survey from Pakistan, we posit two potential channels of gender bias: bias
in the decision whether to enrol/keep sons and daughters in school, and
bias in the decision of education expenditure conditional on enrolling
both sons and daughters in school. In middle and secondary school ages,
evidence points to significant pro-male biases in both the enrolment
decision as well as the decision of how much to spend conditional on
enrolment. However, in the primary school age-group, only the former
channel of bias applies. Results suggest that the observed strong gender
difference in education expenditure is a within rather than an across
household phenomenon.
Journal: Applied Economics
Pages: 2573-2591
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970252
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970252
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2573-2591
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel
Author-X-Name-First: Rajeev
Author-X-Name-Last: Goel
Title: Unemployment, insurance and smoking
Abstract:
Using recent state-level data from the United States, this article
examines new influences on cigarette demand. In particular, we uniquely
focus on the effects of unemployment and health insurance coverage on
smoking. Results show that higher cigarette prices, a lack of health
insurance and restrictions on smoking at home, all lead to reduced
smoking. On the other hand, literacy, income, unemployment, workplace
smoking restrictions, smokeless tobacco taxes and tobacco-producing states
do not seem to have an appreciable impact. The magnitude of the price
elasticity of demand is greater than that found in the pre-MSA era. Policy
implications are discussed.
Journal: Applied Economics
Pages: 2593-2599
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970278
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970278
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2593-2599
Template-Type: ReDIF-Article 1.0
Author-Name: T. Huw Edwards
Author-X-Name-First: T.
Author-X-Name-Last: Huw Edwards
Title: Implicit trade Costs and European single market enlargement
Abstract:
This paper investigates the deeper integration of the new EU accession
states into the Single Market. Building on the assumption that observed
trade patterns can be taken to reveal trading costs between members and
non-members of a bloc, I develop a model-consistent Dixit-Stiglitz general
equilibrium-based calibration technique. Using this, I investigate
numerically the effects of the recent EU enlargement, suggesting that
deeper integration, which removed the border costs implied by 1990s trade
patterns, could raise trade by 50-100% and incomes in the accession states
by 10-20%.
Journal: Applied Economics
Pages: 2601-2613
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970260
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970260
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2601-2613
Template-Type: ReDIF-Article 1.0
Author-Name: Giuliana Parodi
Author-X-Name-First: Giuliana
Author-X-Name-Last: Parodi
Author-Name: Dario Sciulli
Author-X-Name-First: Dario
Author-X-Name-Last: Sciulli
Title: Disability in Italian households: income, poverty and labour market participation
Abstract:
This article studies the economic effects of disabled members on Italian
households, with the aim of identifying a suitable target group for
welfare policies. Survey of Households Income and Wealth data for the year
2000 is used. Preliminary results show significant differences in levels
of income and poverty diffusion to the detriment of households with
disabled members. We propose an exogenous explanation: the replacement
ratio between disability benefits and expected labour income shows that
disability benefits do not compensate the potential incomes of the
disabled person and of the possible carer, except in households with
severe socioeconomic disadvantages. We also propose an endogenous
explanation: applying a logit model we show that the labour market
participation of the possible carer is reduced in households with disabled
persons. In order to increase the income of the households with disabled
members, policy recommendations include the provision of care services and
structural policies to improve employment, income and educational
opportunities for households at greatest disadvantage.
Journal: Applied Economics
Pages: 2615-2630
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970211
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970211
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2615-2630
Template-Type: ReDIF-Article 1.0
Author-Name: Hai-Chin Yu
Author-X-Name-First: Hai-Chin
Author-X-Name-Last: Yu
Author-Name: Ingyu Chiou
Author-X-Name-First: Ingyu
Author-X-Name-Last: Chiou
Author-Name: James Jordan-Wagner
Author-X-Name-First: James
Author-X-Name-Last: Jordan-Wagner
Title: Does the weekday effect of the yen/dollar spot rates exist in Tokyo, London, and New York? An analysis of panel probability distribution
Abstract:
Using probability distribution techniques, this article explores whether
any differences exist between the returns and volatility of yen/dollar
spot markets in Tokyo, London and New York. After the intraday returns
were fit into probability distributions, New York is found to have the
highest return, followed by London, and then Tokyo. In estimating the
peaks and widths of the distributions of volatility, Tokyo is found to
have the lowest volatility in the log-normal distribution, while London
and New York show similar volatility distributions, implying similar
investor risk-return preference behaviour in the London and New York
markets. The findings also imply that arbitrage opportunities between
London and New York could be trivial. After estimating the panel
distribution from Monday to Friday across the three markets, we found that
the Monday effect disappears. Instead, Tuesday shows negative and
significantly lower returns. The Friday (weekend) effect no longer exists.
Instead, Thursday shows a positive and significantly higher return than
the other weekdays. Finally, the three major currency markets did not
become more volatile after Japan's deregulation in the foreign currency
market in April 1998. On the contrary, they show less volatile behaviour
than before deregulation. The probability distributions of volatility on
different weekdays did not change significantly after deregulation.
Journal: Applied Economics
Pages: 2631-2643
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970294
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970294
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2631-2643
Template-Type: ReDIF-Article 1.0
Author-Name: Mubariz Hasanov
Author-X-Name-First: Mubariz
Author-X-Name-Last: Hasanov
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Title: Nonlinearities in emerging stock markets: evidence from Europe's two largest emerging markets
Abstract:
Recent developments in time series analysis allow proper modelling of
nonlinearities in economic and financial variables. A growing body of
research was dedicated to investigation of potential nonlinearities in
conditional mean of many economic and financial variables, mainly
concentrating in developed economies. However, nonlinearities in financial
variables in developing economies have not been fully examined yet. In
this article we investigate potential nonlinearity and cyclical behaviour
of stock returns in Europe's two largest emerging stock markets, mainly in
the Greek and Turkish stock markets. Specifically, we use STAR family
models, which allow to model nonlinearities in the conditional mean, for
modelling monthly returns on stock exchange indices of the Athens Stock
Exchange and Istanbul Stock Exchange. Although we find no nonlinearity in
conditional variance, we do find strong evidence in favour of nonlinear
adjustment of stock returns. It is found that allowing for nonlinearity in
conditional mean results in a superior model and provides good
out-of-sample forecasts, which contradicts to efficient market hypothesis.
Journal: Applied Economics
Pages: 2645-2658
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970310
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970310
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2645-2658
Template-Type: ReDIF-Article 1.0
Author-Name: Conor Keelan
Author-X-Name-First: Conor
Author-X-Name-Last: Keelan
Author-Name: Carol Newman
Author-X-Name-First: Carol
Author-X-Name-Last: Newman
Author-Name: Maeve Henchion
Author-X-Name-First: Maeve
Author-X-Name-Last: Henchion
Title: Quick-service expenditure in Ireland: parametric vs. semiparametric analysis
Abstract:
The aim of this study is to identify the economic and socio-economic
factors influencing Irish households' expenditure on quick-service meals,
a particularly dynamic component of the foodservice industry, and to
determine the extent to which these factors have changed over the course
of the 1990s. Maximum likelihood estimation and semiparametric
alternatives are considered with the conclusion that in this instance
semiparametric techniques do not offer a viable alternative to maximum
likelihood estimation of tobit models, even in the presence of
heteroscedasticity and non-normality. The results revel that household
income, place of residence, commuters and household size have significant
and positive influences on quick-service expenditure. Older families,
single households and married couples, together with homeowners, display
reduced expenditure. The opportunity cost of time is positively related to
quick-service expenditure, consistent with theory, while health knowledge
has a negative impact on quick-service consumption.
Journal: Applied Economics
Pages: 2659-2669
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970286
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970286
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2659-2669
Template-Type: ReDIF-Article 1.0
Author-Name: Isil Erol
Author-X-Name-First: Isil
Author-X-Name-Last: Erol
Author-Name: Dogan Tirtiroglu
Author-X-Name-First: Dogan
Author-X-Name-Last: Tirtiroglu
Title: The inflation-hedging properties of Turkish REITs
Abstract:
This study empirically tests the inflation-hedging abilities of Turkish
REITs in comparison to the indices of common stocks listed on the Istanbul
Stock Exchange (ISE) over the period December 1999 to December 2004. Two
main factors motivate this study. First, compared to their counterparts in
developed capital markets, Turkish REITs have some important tax
incentives as well as flexibility in managing their portfolios. Second,
the Turkish economy provides a rare and good opportunity to test the
hedging behaviour of real estate stocks in periods of both high- and
moderate-inflation rates. The empirical results show that Turkish REITs,
in general, provide a better hedge against both actual and expected
inflation than do the ISE common stock indices. Dividing the entire sample
period into the high- and moderate-inflation sub-periods, we find that the
hedging ability of REITs is better under high inflation than under
moderate inflation.
Journal: Applied Economics
Pages: 2671-2696
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970237
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970237
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2671-2696
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Bonilla
Author-X-Name-First: Claudio
Author-X-Name-Last: Bonilla
Author-Name: Carlos Maquieira
Author-X-Name-First: Carlos
Author-X-Name-Last: Maquieira
Author-Name: Rafael Romero-Meza
Author-X-Name-First: Rafael
Author-X-Name-Last: Romero-Meza
Title: Nonlinear behaviour of emerging market bonds spreads: the Latin American case
Abstract:
In this article we check for nonlinear behaviour of the 10 most important
Latin American emerging market bonds spreads. Applying the Hinich
portmanteau bicorrelation test, the BDS test and the Engle LM test, we
observe systematic nonlinear structure in the spreads series. Our results
suggest that the nonlinear serial dependencies are episodic in nature. All
the stock returns series (with the exception of Mexico) are characterized
by few brief periods of highly significant nonlinearity, followed by long
time periods in which the returns follow a pure noise process. Our
findings support the idea that, even in this well informed and
sophisticated market, the weak-form of the efficient market hypothesis
cannot be supported.
Journal: Applied Economics
Pages: 2697-2702
Issue: 20
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970245
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970245
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Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2697-2702
Template-Type: ReDIF-Article 1.0
Author-Name: David Hauner
Author-X-Name-First: David
Author-X-Name-Last: Hauner
Author-Name: Shanaka Peiris
Author-X-Name-First: Shanaka
Author-X-Name-Last: Peiris
Title: Banking efficiency and competition in low income countries: the case of Uganda
Abstract:
There is a concern that the state dominated, inefficient and fragile
banking systems in many low-income countries, especially Sub-Saharan
Africa, are a major hindrance to economic growth. In this context, this
article systematically analyses the impact of the far-reaching banking
sector reforms undertaken in Uganda on banking sector competition and
efficiency. Using models of banking competition and efficiency that have
been predominantly estimated in industrial countries, we find that the
level of competition has significantly increased and has been associated
with a rise in efficiency of the sector. Moreover, on average, larger
banks and foreign-owned banks are more efficient than others while smaller
banks have fallen back in efficiency with the increase in competitive
pressures.
Journal: Applied Economics
Pages: 2703-2720
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600972456
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600972456
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2703-2720
Template-Type: ReDIF-Article 1.0
Author-Name: Elisabeth Mueller
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Mueller
Title: Benefits of control, capital structure and company growth
Abstract:
This article studies the influence of the benefits of control on the
capital structure and the growth of private companies for a sample of 8964
UK companies with limited liability observed for up to 5 years. It is
hypothesized that companies in which existing owners would lose more
control if they expanded, have smaller equity increases, are more highly
levered and grow more slowly. Potential loss of control is measured as the
difference in the probability of winning a vote for the largest owner
before and after a hypothetical equity increase. Evidence is found that is
consistent with the hypotheses.
Journal: Applied Economics
Pages: 2721-2734
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600981622
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600981622
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2721-2734
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Yongqing Wang
Author-X-Name-First: Yongqing
Author-X-Name-Last: Wang
Title: The J-curve: evidence from commodity trade between US and China
Abstract:
In testing the short-run (J-curve effect) and the long-run effects of
currency depreciation on the trade balance many researchers have used
either trade data between one country and the rest of the world or between
one country and another trading partner. Both groups are said to suffer
from aggregation bias. To reduce the bias, in this article we consider
trade data between one country (the US) and her trading partner (China)
disaggregated by commodity. We use imports and exports of 88 industries
(2-digit and 3-digit classifications) and cointegration analysis to show
that the trade balance of at least 34 of the industries react favourably
to real depreciation of the dollar. The J-curve effect is detected in 22
industries. Furthermore, most of these industries that are sensitive to
currency depreciation are durable commodity groupings.
Journal: Applied Economics
Pages: 2735-2747
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970328
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970328
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2735-2747
Template-Type: ReDIF-Article 1.0
Author-Name: George Halkos
Author-X-Name-First: George
Author-X-Name-Last: Halkos
Author-Name: Nickolaos Tzeremes
Author-X-Name-First: Nickolaos
Author-X-Name-Last: Tzeremes
Title: Trade efficiency and economic development: evidence from a cross country comparison
Abstract:
Economic theory suggests that development is enhanced through income
growth, which is driven through increased trade. However, the empirical
evidence of such a relationship most of the times is proved to be weak. In
this study we try to determine the factors influencing this relationship
by measuring 'trade efficiency'. Using the data envelopment analysis (DEA)
window method for a sample of 16 OECD countries, we obtained the
efficiency scores and the optimal output levels for the inefficient
countries for a time period of 5 years under consideration. Results drawn
from the broadly used ratio analysis were also compared to the results
derived from the DEA model. Our empirical findings show that 'trade
efficient' countries have clear characteristics like low-exchange rates
for exports, low R&D intensity, high-value intra industry trade and
positive impact of net trade on their gross domestic product.
Journal: Applied Economics
Pages: 2749-2764
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970302
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970302
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2749-2764
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Moss
Author-X-Name-First: Charles
Author-X-Name-Last: Moss
Author-Name: Troy Schmitz
Author-X-Name-First: Troy
Author-X-Name-Last: Schmitz
Author-Name: A. Schmitz
Author-X-Name-First: A.
Author-X-Name-Last: Schmitz
Title: Segregating genetically modified and nongenetically modified corn in a marketing channel
Abstract:
The adoption of GM corn in the United States depends on many factors
including segregation costs, which have minor impacts on aggregate
welfare. Because the demand for nonGM corn is small relative to its
supply, no premium for nonGM corn can be generated in excess of the
segregation costs. An outward shift in the supply of corn resulting from
the adoption of GM varieties has a greater impact on aggregate welfare
than do the segregation costs required to satisfy the GM-free demand. A
10% increase in the aggregate supply of GM corn increases aggregate
welfare by more than US $250 million. However, nonadopters of GM corn lose
while adopters can gain or lose depending on the nature of the aggregate
demand curve for US corn.
Journal: Applied Economics
Pages: 2765-2774
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970336
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970336
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2765-2774
Template-Type: ReDIF-Article 1.0
Author-Name: Hsiao-Tang Hsu
Author-X-Name-First: Hsiao-Tang
Author-X-Name-Last: Hsu
Title: The payoff and implied pricing kernel in REITs
Abstract:
This article explores the hybrid character (i.e. the resemblance of both
stock and bond) of Real Estate Investment Trust (REIT) through the implied
pricing kernel behind REITs prices. We use the Empirical Pricing kernel
method (Rosenberg and Engle, 2002) to explore their Payoff probability
density and extract the implied pricing kernel. To estimate payoff
probability density, we use asymmetric GARCH model. Results indicate that
implied pricing kernels flatten in all ranges of low rate of returns and
decrease exponentially in ranges of high rate of returns. This means the
REIT pricing kernel resembles a bond when rate of return is low, and a
stock when it is high. The pattern is consistent between 1970 and 2000.
Journal: Applied Economics
Pages: 2775-2783
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970344
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970344
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2775-2783
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Model-selection-based unit-root detection in unemployment rates: international evidence
Abstract:
A model-selection-based unit-root detection by using the Bayesian
information criterion is proposed. First, six alternative model classes
are obtained considering the presence or absence of a unit root and
considering three kinds of deterministic terms: no constant, constant,
constant and trend. Second, given the selected model class, the best model
is selected from the alternative models with different lags. Third, the
best of the entire model set comprising the six models obtained in the
preceding step is selected. Finally, whether an observed time series
contains a unit root is determined on the basis of the selected model.
Simulation results suggest that the proposed method is at least comparable
to and often better than the sequential testing method provided by Dolado
et al. (1990). Empirical results obtained by the proposed method are more
convincing than those obtained by the sequential testing method and
suggest that the hysteresis hypothesis can be applied to monthly time
series of the unemployment rates for all the six countries under
consideration.
Journal: Applied Economics
Pages: 2785-2791
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600970351
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970351
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2785-2791
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Arti Prasad
Author-X-Name-First: Arti
Author-X-Name-Last: Prasad
Author-Name: Baljeet Singh
Author-X-Name-First: Baljeet
Author-X-Name-Last: Singh
Title: A test of the Wagner's hypothesis for the Fiji islands
Abstract:
In this article we examine Wagner's law for Fiji for the period 1970 to
2002. Using the Johansen (1988) test for cointegration, we find one
cointegration relationship between national output and government
expenditure. Using five different long run estimators, we find robust
results on the impact of national income on government expenditure. The
elasticity ranges from 1.36 to 1.44, implying that a 1% increase in income
leads to a 1.36-1.44% increase in government expenditure. Moreover, we
find that in the long run national income Granger causes government
expenditure. While these results are consistent with Wagner's law, we warn
policy makers that because Fiji's total debt stands at around 69% of GDP,
in future the bulk of expenditure will go towards debt financing at the
expense of productive sectors.
Journal: Applied Economics
Pages: 2793-2801
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600972472
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600972472
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2793-2801
Template-Type: ReDIF-Article 1.0
Author-Name: R. Bonci
Author-X-Name-First: R.
Author-X-Name-Last: Bonci
Author-Name: F. Columba
Author-X-Name-First: F.
Author-X-Name-Last: Columba
Title: Monetary policy effects: new evidence from the Italian flow-of-funds
Abstract:
New evidence on the transmission of monetary policy to the economy is
provided through an analysis of the effects of a restrictive monetary
policy shock on Italian flow of funds over the period 1980 to 2002. Firms
reduce issuance of debt and decrease the acquisition of financial assets,
providing no support for the existence of strong financial frictions.
Following the shock, in the first quarter households increase short-tem
liabilities and diminish the acquisition of liquid assets and shares. The
public sector increases net borrowing during the first 2 years. Financial
corporations decrease their borrowing for three quarters while in the same
period the foreign sector increases borrowed funds. We claim that our
results shed new light on the role of the financial decisions of the
economic sectors in the transmission mechanism of monetary policy.
Journal: Applied Economics
Pages: 2803-2818
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840801964492
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964492
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2803-2818
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Hafner
Author-X-Name-First: Kurt
Author-X-Name-Last: Hafner
Title: The pattern of international patenting and technology diffusion
Abstract:
The article focuses on the impact of R&D expenditure on labour
productivity using international patent applications as a technology
diffusion indicator. Considering the relationship between research and
productivity, the pattern of international patenting reflects the channel
between the source and the destination of transferred technology.
Accounting for nonstationarity and cointegration, I find that
patent-related foreign R&D spillovers are present for a panel of 18 OECD
countries. Moreover, nonG7 OECD countries benefit more from foreign rather
than domestic R&D activities. Estimates also show that there is no
significant spillover effect from bilateral trade, but confirm the impact
of FDI on domestic labour productivity.
Journal: Applied Economics
Pages: 2819-2837
Issue: 21
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600981630
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600981630
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Handle: RePEc:taf:applec:v:40:y:2008:i:21:p:2819-2837
Template-Type: ReDIF-Article 1.0
Author-Name: P. D. Chwelos
Author-X-Name-First: P. D.
Author-X-Name-Last: Chwelos
Author-Name: E. R. Berndt
Author-X-Name-First: E. R.
Author-X-Name-Last: Berndt
Author-Name: I. M. Cockburn
Author-X-Name-First: I. M.
Author-X-Name-Last: Cockburn
Title: Faster, smaller, cheaper: an hedonic price analysis of PDAs
Abstract:
We compute quality-adjusted price indexes for personal digital assistants
(PDAs) for the period 1999 to 2004. Hedonic regressions indicate that
prices are related to processor generation and clock speed, memory
capacity, screen size and quality and the presence of a digital camera or
wireless capability. A particularly salient feature of PDAs is
portability, where we find: (i) purchasers value the energy density of the
battery technology (e.g. lithium ion) rather than the battery life in
hours; and (ii) the physical characteristics of the PDA (e.g. weight,
volume) are nonlinearly related to price, suggesting that valuation of the
physical form of PDAs does not bear a simple linear relationship to
characteristics, either in absolute terms ('smaller is better') or vs. an
ergonomic 'sweet spot'. Rather, portability characteristics are correlated
with other desirable attributes, making the relationship between price and
portability difficult to disentangle. However, hedonic price indexes are
robust across different measures of the portability of PDAs. Hedonic
indexes using the dummy variable, characteristics prices, and imputation
approaches decline on average between 19 and 26% per year. A matched model
price index computed from a subset of observations declines at 19% per
year, while a fixed-effects hedonic index declines at 14% per year.
Journal: Applied Economics
Pages: 2839-2856
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993924
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993924
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2839-2856
Template-Type: ReDIF-Article 1.0
Author-Name: Ines Hardoy
Author-X-Name-First: Ines
Author-X-Name-Last: Hardoy
Author-Name: Pål Schøne
Author-X-Name-First: Pål
Author-X-Name-Last: Schøne
Title: The family gap and family friendly policies: the case of Norway
Abstract:
Norway has among the most generous family policies in the world. The most
recent is the cash-for-care reform, which was implemented in 1998. We
answer two main questions in this article: What is the level of the family
gap in such a generous regime and how has it developed as a consequence of
the latest reform? Results suggest that the family gap is rather modest in
Norway compared to many other countries and we find no evidence of a
worsening of the gap in recent years. A positive interpretation of these
results is that the Norwegian labour market is fairly flexible, in the
sense that it seems to be able to absorb even more generous family
policies.
Journal: Applied Economics
Pages: 2857-2871
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993981
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993981
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2857-2871
Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton
Author-X-Name-First: James
Author-X-Name-Last: Thornton
Author-Name: Jennifer Rice
Author-X-Name-First: Jennifer
Author-X-Name-Last: Rice
Title: Determinants of healthcare spending: a state level analysis
Abstract:
Within the high and rising level of healthcare spending for the US as a
whole is substantial variation in spending across states. Yet relatively
little attention has been given to the empirical analysis of interstate
differences in aggregate healthcare expenditures, and therefore little
empirical evidence exists at the state level to guide policymakers. Using
data for all 50 states for the year 1998, we estimate an empirical model
that includes structural and reduced-form healthcare spending equations
and a health production function to assess the significance, size and
relative importance of factors that prior research indicates, may play an
important role in explaining interstate variation in medical care
expenditures, and the main pathways through which they operate. Our
results indicate higher levels of healthcare spending for state
populations with higher income, less education, fewer uninsured residents,
less healthy lifestyles, larger proportion of elderly residents, greater
availability of medical care providers and less urbanization. Our findings
suggest that the most effective cost containment measures may be those
that increase education and promote healthy lifestyles. Not only do these
actions lead to reductions in healthcare spending, they also improve the
health status of the population, and may help to achieve other important
social policy goals.
Journal: Applied Economics
Pages: 2873-2889
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993973
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993973
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2873-2889
Template-Type: ReDIF-Article 1.0
Author-Name: C. O. Vargas-Tellez
Author-X-Name-First: C. O.
Author-X-Name-Last: Vargas-Tellez
Title: Purchasing power parity across Mexican cities: a panel data analysis
Abstract:
This article presents three different unit root tests for panel data, the
main objective is to find the level of internal integration market through
the purchasing power parity (PPP) evidence, based in the Balassa-Samuelson
approach. Thus, eight kinds of markets, as tradable and nontradable goods
for 16 main Mexican cities during a 21 year period have been contrasted.
While two tests showed the PPP validity for seven markets, the other
rejected it. The results obtained moreover feed the present controversy
about which test is most appropriate to test the PPP, as soon as it is
highlighted new elements emerge to explain the half-life analysis.
Journal: Applied Economics
Pages: 2891-2899
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993965
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993965
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2891-2899
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Myro
Author-X-Name-First: Rafael
Author-X-Name-Last: Myro
Author-Name: Patricio Perez
Author-X-Name-First: Patricio
Author-X-Name-Last: Perez
Author-Name: Alberto Colino
Author-X-Name-First: Alberto
Author-X-Name-Last: Colino
Title: Economic growth in a world of ideas: the US and the leading European countries
Abstract:
This article discusses the ideas creation model that was initially
formulated by Romer and later generalized and empirically applied by
Jones. In particular, we generalize Jones' model to include catching up to
a technological frontier, which improves the empirical results for
European countries, and ensures convergence to the technological frontier
in the steady state
Journal: Applied Economics
Pages: 2901-2909
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993957
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993957
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2901-2909
Template-Type: ReDIF-Article 1.0
Author-Name: A. E. Akinlo
Author-X-Name-First: A. E.
Author-X-Name-Last: Akinlo
Title: A cost function analysis of import demand for Nigeria
Abstract:
The article uses a translog cost function to examine the substitution
relations among capital, labour and imports. The results show that capital
has a substitute relation with domestic labour and import. However, labour
and import have complementary relationship. The implication of this
finding is that liberalization policies, if pursued vigorously, could
impart positively on the demand for labour. In addition, it suggests that
economic growth could be enhanced through trade liberalization.
Journal: Applied Economics
Pages: 2911-2920
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993932
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993932
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2911-2920
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Mutz
Author-X-Name-First: Christine
Author-X-Name-Last: Mutz
Author-Name: Thomas Ziesemer
Author-X-Name-First: Thomas
Author-X-Name-Last: Ziesemer
Title: Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for Brazil
Abstract:
This article focuses on a growth model in which (unlike other models) low
(high) export demand elasticities and the fact that developing countries
are importers of capital goods help explaining the slow (high) growth of
these countries in the transition and in the steady state. The question
arises whether export demand elasticities are low or high. For answering
this question, export demand elasticities for the case of Brazil are
obtained by estimation of the model. As a by-product of estimating the
model, we obtain estimates for total-factor productivity growth and for
scale economies. Based on the results from estimation we calculate
steady-state growth rates, engine and handmaiden effects of growth as well
as dynamic steady-state gains from trade. The model and the results are
discussed in regard to several strands of literature.
Journal: Applied Economics
Pages: 2921-2937
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993916
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993916
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2921-2937
Template-Type: ReDIF-Article 1.0
Author-Name: Petter Vegard Hansen
Author-X-Name-First: Petter Vegard
Author-X-Name-Last: Hansen
Author-Name: Lars Lindholt
Author-X-Name-First: Lars
Author-X-Name-Last: Lindholt
Title: The market power of OPEC 1973-2001
Abstract:
We apply a multi-equation dynamic econometric model on monthly data to
test if the behaviour of OPEC as a whole or different sub-groups of the
cartel is consistent with the characteristics of dominant producers on the
world crude oil market in the period 1973-2001. Our results indicate that
the producers outside OPEC can be described as competitive producers,
taking the oil price as given and maximizing profits. The OPEC members do
not fit the behaviour of price-taking producers. Our findings of low
residual demand price elasticities for OPEC underpin the potential market
power of the producer group, and are in line with the results in some
recent energy studies. On the other hand, our findings indicate that
neither OPEC nor different sub-groups of the cartel can be characterized
as a dominant producer in the period 1973-1994. However, we find that the
characteristics of a dominant producer to some extent fit OPEC-Core as
from 1994. Thus, although OPEC clearly has affected the market price, the
producer group has not behaved as a pure profit-maximizing dominant
producer.
Journal: Applied Economics
Pages: 2939-2959
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600972480
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600972480
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2939-2959
Template-Type: ReDIF-Article 1.0
Author-Name: Jeong-Dong Lee
Author-X-Name-First: Jeong-Dong
Author-X-Name-Last: Lee
Author-Name: Chansoo Park
Author-X-Name-First: Chansoo
Author-X-Name-Last: Park
Author-Name: Dong-Hyun Oh
Author-X-Name-First: Dong-Hyun
Author-X-Name-Last: Oh
Author-Name: Tai-Yoo Kim
Author-X-Name-First: Tai-Yoo
Author-X-Name-Last: Kim
Title: Measuring consumption efficiency with utility theory and stochastic frontier analysis
Abstract:
The concept of production efficiency has been studied since the 1960s,
but consumption activity as well may be inefficient for various reasons,
such as product complexity, lack of information, the bounded rationality
of the consumer and imperfect markets, to name a few. This study proposes
a conceptual framework for measuring the consumption efficiency of
differentiated products, based on traditional utility theory. It employs
stochastic frontier analysis (SFA) in an empirical analysis. It makes use
of hedonic price theory to link traditional utility theory and the SFA
framework. When the developed model is applied to the Korean personal
computer market, empirical results indicate the levels and distribution of
consumption efficiency in that market. The findings afford us a better
understanding of the characteristics of the innovation process in that
market.
Journal: Applied Economics
Pages: 2961-2968
Issue: 22
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993908
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993908
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Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2961-2968
Template-Type: ReDIF-Article 1.0
Author-Name: H. Benitez-Silva
Author-X-Name-First: H.
Author-X-Name-Last: Benitez-Silva
Author-Name: F. Heiland
Author-X-Name-First: F.
Author-X-Name-Last: Heiland
Title: Early claiming of social security benefits and labour supply behaviour of older Americans
Abstract:
The labour supply incentives provided by the early retirement rules of
the United States Social Security Old Age benefits program are of growing
importance as the Normal Retirement Age (NRA) increases to 67 and the
labour force participation of older Americans starts to increase. These
incentives allow individuals who claim benefits before the NRA but
continue to work, or return to the labour force, to increase their future
rate of benefit pay by having benefits withheld. Since the adjustment of
the benefit rate takes place only after the NRA is reached, benefits
received before the NRA can become actuarially unfair for those who
continue to work after claiming. Consistent with these incentives,
estimates from bivariate models of the monthly labour force exit and
claiming hazards using data from the Health and Retirement Study indicate
that early claimers who do not withdraw from the labour force around the
time they claim are increasingly likely to stay in the labour force.
Journal: Applied Economics
Pages: 2969-2985
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994054
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994054
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:2969-2985
Template-Type: ReDIF-Article 1.0
Author-Name: Craig Depken
Author-X-Name-First: Craig
Author-X-Name-Last: Depken
Author-Name: Arthur Snow
Author-X-Name-First: Arthur
Author-X-Name-Last: Snow
Title: The strategic nature of advertising in segmented markets
Abstract:
We develop a simple model in which firm-specific advertising has
cooperative and predatory effects. Our model is set in a static market
where firms are naturally segmented into two distinct submarkets: several
large firms located in the core, with small firms operating as a fringe.
We test the net effect of opposing market size (cooperative) and market
share (predatory) effects of both fringe and core firm advertising on the
advertising decisions of large firms in several US consumer industries.
Empirically, fringe firm advertising leads to an increase in advertising
efforts by large firms, implying strategic complementarity. On the other
hand, increased advertising by core firms in an industry decreases
advertising expenditures of other core firms, indicating they are
strategic substitutes. Our findings imply that equilibrium levels of
advertising can be greater with asymmetric, rather than symmetric,
strategic interactions.
Journal: Applied Economics
Pages: 2987-2994
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994047
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994047
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:2987-2994
Template-Type: ReDIF-Article 1.0
Author-Name: Donna Ramirez Harrington
Author-X-Name-First: Donna Ramirez
Author-X-Name-Last: Harrington
Author-Name: Madhu Khanna
Author-X-Name-First: Madhu
Author-X-Name-Last: Khanna
Author-Name: George Deltas
Author-X-Name-First: George
Author-X-Name-Last: Deltas
Title: Striving to be green: the adoption of total quality environmental management
Abstract:
Many firms are undertaking environment-friendly organizational change by
applying the philosophy of total quality management with its emphasis on
reducing waste and increasing efficiency. Their objective is to improve
their management of pollution and increase customer satisfaction. This
article investigates the factors that lead to total quality environmental
management (TQEM) by large firms. We find that internal considerations
stemming from a firm's technical capability, size (absolute and relative
to competing firms), extent of operations and volume of past emissions are
strongly associated with the TQEM adoption decision. The first four
factors are proxies for the firm's costs and capabilities of adopting TQEM
while the fifth factor is related to the benefits from increasing
efficiency and waste reduction, and thus proxies for internally generated
demand for TQEM. The desire to improve a firm's image with customers,
earning good-will with regulators and the anticipation of future
regulations do not appear to be associated with the adoption of TQEM.
Thus, this article's main conclusion is that the adoption of TQEM is
associated mostly with internal factors and motives.
Journal: Applied Economics
Pages: 2995-3007
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994005
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994005
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:2995-3007
Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Frantzen
Author-X-Name-First: Dirk
Author-X-Name-Last: Frantzen
Title: R&D and manufacturing production specialization in developed economies
Abstract:
A study of the relation between technology and manufacturing production
specialization in a series of developed economies is performed by means of
models relating indicators of revealed symmetric comparative advantage of
value added and exports to similar measures of comparative performance of
R&D expenditure, capital intensity, total factor productivity and wage
costs. The production and R&D specialization are shown to be substantial
and sticky. This contrasts with the evidence of a substantial degree of
convergence in the patterns of the other variables. Regression estimates
show that, although all variables play their part, the impact of
comparative R&D efforts on production specialization is by far the
strongest. This impact is found to be stronger in the smaller economies
and it is especially important in research-intensive industries. The
influence of comparative wages is, moreover, found to be positive here,
suggesting the dominance of a labour skill and efficiency wage effect over
a wage cost competitiveness effect. These findings are shown to conform
quite well with the predictions of Schumpeterian theory and of certain
contributions to 'new trade theory' that have stressed the importance of
dynamic economies of scale.
Journal: Applied Economics
Pages: 3009-3027
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994013
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994013
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3009-3027
Template-Type: ReDIF-Article 1.0
Author-Name: Arnold Cheng
Author-X-Name-First: Arnold
Author-X-Name-Last: Cheng
Author-Name: Michael Fung
Author-X-Name-First: Michael
Author-X-Name-Last: Fung
Title: Financial market and housing wealth effects on consumption: a permanent income approach
Abstract:
The objective of this study is to examine the financial market and
housing wealth effects on consumption. Housing has the dual functions as
both a commodity yielding a flow of housing services and an investment
asset yielding a flow of capital income. With the construction of an
empirical framework based on the vector autoregression approach, the
findings from this study suggest that a rise in housing price has both a
positive wealth effect and a negative price effect on consumption. While
the positive wealth effect is caused by an increase in capital income, the
negative price effect is caused by an increase in the cost of housing
services. In addition, the housing market wealth effect increases, at the
expense of the price effect, with the level of housing-market leverage.
These findings imply that the government policy of land supply aiming to
stimulate the economy should strike a balance between the possible wealth
and price effects of the housing market.
Journal: Applied Economics
Pages: 3029-3038
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994021
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3029-3038
Template-Type: ReDIF-Article 1.0
Author-Name: Frode Alfnes
Author-X-Name-First: Frode
Author-X-Name-Last: Alfnes
Author-Name: Kyrre Rickertsen
Author-X-Name-First: Kyrre
Author-X-Name-Last: Rickertsen
Author-Name: Øydis Ueland
Author-X-Name-First: Øydis
Author-X-Name-Last: Ueland
Title: Consumer attitudes toward low stake risk in food markets
Abstract:
Consistency of quality is viewed as important for producers of consumer
goods. However, there is no literature testing the importance of quality
consistency on consumers' willingness to pay for consumer goods. We use an
experimental auction market to investigate how inconsistency in tenderness
affects consumers' willingness to pay for beef. We find that most
consumers are risk averse with respect to sensory quality. Both the
average tenderness and the variance of tenderness affected the consumers'
willingness to pay for beef. Reducing the uncertainty of the sensory
quality by categorizing the beef into three tenderness classes increased
the total value of the beef by 8%.
Journal: Applied Economics
Pages: 3039-3049
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994062
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994062
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3039-3049
Template-Type: ReDIF-Article 1.0
Author-Name: Stavros Degiannakis
Author-X-Name-First: Stavros
Author-X-Name-Last: Degiannakis
Author-Name: Alexandra Livada
Author-X-Name-First: Alexandra
Author-X-Name-Last: Livada
Author-Name: Epaminondas Panas
Author-X-Name-First: Epaminondas
Author-X-Name-Last: Panas
Title: Rolling-sampled parameters of ARCH and Levy-stable models
Abstract:
In this article an asymmetric autoregressive conditional
heteroskedasticity (ARCH) model is applied to some well-known financial
indices (DAX30, FTSE20, FTSE100 and SP500), using a rolling sample of
constant size, in order to investigate whether the values of the estimated
parameters of the model change over time. Although, there are changes in
the estimated parameters reflecting that structural properties and trading
behaviour alter over time, the ARCH model adequately forecasts the
one-day-ahead volatility. A simulation study has been carried out to
investigate whether the time-variant attitude holds in the case of a
generated ARCH data process revealing that either in that case the
rolling-sampled parameters are time varying. The rolling analysis is also
applied to estimate the parameters of a Levy-stable distribution. The
empirical findings support that the stable parameters are also time
variant.
Journal: Applied Economics
Pages: 3051-3067
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994039
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3051-3067
Template-Type: ReDIF-Article 1.0
Author-Name: Nil Demet Gungor
Author-X-Name-First: Nil Demet
Author-X-Name-Last: Gungor
Author-Name: Aysıt Tansel
Author-X-Name-First: Aysıt
Author-X-Name-Last: Tansel
Title: Brain drain from Turkey: an investigation of students' return intentions
Abstract:
The emigration of skilled individuals from Turkey attracted greater media
attention and the interest of policymakers in Turkey, particularly after
the experience of recurrent economic crises that have led to an increase
in unemployment among the highly educated young. This study estimates a
model of return intentions using a data set compiled from an Internet
survey of Turkish students residing abroad. The findings of this study
indicate that, as expected, higher salaries offered in the host country
and lifestyle preferences, including a more organized environment in the
host country, increase the probability of student nonreturn. However, the
analysis also points to the importance of prior return intentions and the
role of the family in the decision to return to Turkey or stay overseas.
It is also found that the compulsory service requirement attached to
government scholarships increases the probability of student return.
Turkish student association membership also increases return intentions.
Longer stay durations, on the other hand, decrease the probability of
return. These findings have important policy implications.
Journal: Applied Economics
Pages: 3069-3087
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600993999
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600993999
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3069-3087
Template-Type: ReDIF-Article 1.0
Author-Name: Koyin Chang
Author-X-Name-First: Koyin
Author-X-Name-Last: Chang
Title: The strategic alliance of the biotechnology firm
Abstract:
This article applies the relevant theories of firm organization and
inter-firm relationships in the high-tech environment to explain the
institutional reasons that firms choose between internal or external
approaches. Particularly, this study tries to understand to what extent
and in what way strategic alliances have impacts on individual firms'
organizational structure, financial structure and firms' activities. Also
it tries to find out what type of firms tend to benefit most from
alliances, and thus use more inter-firm agreements. The theoretical
findings are that due to liquidity constraint and asymmetric information
reasons, young, research-intensive firms need to use more alliances to
survive in the fast changing high-technology industry. The empirical
analysis employs 3 year panel data and finds that the results are
consistent with the theoretical predictions.
Journal: Applied Economics
Pages: 3089-3100
Issue: 23
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994104
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994104
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Handle: RePEc:taf:applec:v:40:y:2008:i:23:p:3089-3100
Template-Type: ReDIF-Article 1.0
Author-Name: Alpaslan Akay
Author-X-Name-First: Alpaslan
Author-X-Name-Last: Akay
Author-Name: Elias Tsakas
Author-X-Name-First: Elias
Author-X-Name-Last: Tsakas
Title: Asymptotic bias reduction for a conditional marginal effects estimator in sample selection models
Abstract:
In this article we discuss the differences between the average marginal
effect and the marginal effect of the average individual in sample
selection models, estimated by the Heckman procedure. We show that the
bias that emerges as a consequence of interchanging the measures, could be
very significant, even in the limit. We suggest a computationally cheap
approximation method, which corrects the bias to a large extent. We
illustrate the implications of our method with an empirical application of
earnings assimilation and a small Monte Carlo simulation.
Journal: Applied Economics
Pages: 3101-3110
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994096
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994096
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3101-3110
Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Differentials at firm level productive capacity realization in Bangladesh food manufacturing: an empirical analysis
Abstract:
This article empirically estimates the firm-specific productive capacity
realization (PCR) indices using the stochastic frontier production
function and analyses a number of variables explaining realization rates
across firms and over time. Following Battese and Coelli (1995) the
stochastic frontier production function is used to estimate capacity
output and thereby PCR. Using the Firm level panel data from Bangladesh
food manufacturing, the results show that capacity realization rates
widely vary across firms and over time. The average rate of realization is
about 65% implying that most of the firms are producing away from their
full production capacity. This article also identifies several
firm-specific and policy-related variables explaining capacity
realization. The results show that firm size (SZE) and outward orientation
(OPN) have positive while capital intensity (CNSTY), market structure
(MSTRE) and effective rate of assistance (ERA) have negative impact on
realization rates. Strikingly, both policy-related variables are
statistically insignificant. Sensitivity analysis using the 'extreme bound
analysis' also confirms the fragility (insignificance) of these two
variables. Excessive support to firms and piecemeal liberalization reform
may be attributed to these results. Thus, further reform of the domestic
and trade policies are suggested to ensure competition and competitiveness
of the manufacturing sector and of the country.
Journal: Applied Economics
Pages: 3111-3126
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994088
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994088
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3111-3126
Template-Type: ReDIF-Article 1.0
Author-Name: Aashish Mehta
Author-X-Name-First: Aashish
Author-X-Name-Last: Mehta
Author-Name: Hector Villarreal
Author-X-Name-First: Hector
Author-X-Name-Last: Villarreal
Title: Why do diplomas pay? An expanded Mincerian framework applied to Mexico
Abstract:
We compare four explanations for the value of diplomas, each of which has
implications for unemployment and wage variation amongst graduates, most
of which have not previously been tested for when seeking to explain the
effects of diplomas. We test for these implications using a refined
econometric framework, exploiting idiosyncrasies in Mexican labour market
and educational institutions. Premiums in Mexico appear to result from
diplomas tied to jobs with downwards rigid wages - an uncommon but simple
explanation. The standard explanations, including screening, are not
suggested by Mexican data. Our results illuminate how labour markets
segmented by diplomas clear. This depends upon the nature of the labour
market rigidities exactly as predicted by neoclassical theory.
Journal: Applied Economics
Pages: 3127-3144
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994120
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994120
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3127-3144
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Martinez-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Martinez-Zarzoso
Author-Name: Eva Maria Perez-Garcia
Author-X-Name-First: Eva Maria
Author-X-Name-Last: Perez-Garcia
Author-Name: Celestino Suarez-Burguet
Author-X-Name-First: Celestino
Author-X-Name-Last: Suarez-Burguet
Title: Do transport costs have a differential effect on trade at the sectoral level?
Abstract:
This article aims to analyse the determinants of transport costs and to
investigate their influence in international trade with a sample of
disaggregate trade data. First, we estimate a transport-cost function
using cross-section data on maritime and overland transport for four
sectors: agro-industry, ceramic tiles, motor vehicle parts and
accessories, and electrical and mechanical household appliances, obtained
from interviews held with Spanish exporters and logistics operators in
2001. Second, we study the relationship between transport costs and trade
and estimate the elasticity of trade with respect to transport costs for
each sector. Important differences for high value- and low value-added
sectors are observed. The trade-equation estimation shows that higher
transport costs significantly deter trade, especially in high value-added
sectors.
Journal: Applied Economics
Pages: 3145-3157
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994179
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994179
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3145-3157
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Jareno
Author-X-Name-First: Francisco
Author-X-Name-Last: Jareno
Title: Spanish stock market sensitivity to real interest and inflation rates: an extension of the Stone two-factor model with factors of the Fama and French three-factor model
Abstract:
This study is focussed on estimating the real interest and inflation
sensitivity in Spanish market, proposing an extension of the Stone (1974)
two-factor model and controlling for size and growth of the companies
[Fama and French (1993) three-factor model], because of its importance in
the stock sensitivity shown by previous literature. I also study the
classical explanatory factors of the stock sensitivity: leverage and
liquidity level of the firms. The Spanish stock response is similar to the
response in other markets, and the 'size' is higher than 'growth' effect.
Journal: Applied Economics
Pages: 3159-3171
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994187
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994187
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3159-3171
Template-Type: ReDIF-Article 1.0
Author-Name: Shu Ling Lin
Author-X-Name-First: Shu Ling
Author-X-Name-Last: Lin
Title: Conditional risk and return in Asian emerging markets: evidence from the banking sector
Abstract:
Previous studies reach no consensus on the relationship between risk and
return using data from one market. This study argues that the market
factor should be noticed in assessing the risk-return relationship in a
partially integrated emerging market. The analysis aims to provide new
insight into the nature of the risk-return relationship by a conditional
factor GARCH-M framework that controls for time-series effects, to
investigate the banking sector in five Asian emerging markets of China,
Hong Kong, Indonesia, Malaysia and Taiwan during the period 1995 to 2004.
Finally, the study provides evidence on these relations before and after
the Asian financial crisis of 1997. The results are generally consistent
across the markets and with expectations, and have implications for
empirical assessments of the risk-return relationship and diversification.
Journal: Applied Economics
Pages: 3173-3183
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994161
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994161
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3173-3183
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Mei-Se Chien
Author-X-Name-First: Mei-Se
Author-X-Name-Last: Chien
Title: Stability of money demand function revisited in China
Abstract:
As China's economic reforms have undergone significant structural changes
after 1979, it has been rather difficult to formulate a stable money
demand function over the period following that year. While previous
literature on the long-run relationship of money demand in China shows the
existence of stable money demand, this article revisits the stability of
the China money demand function over the period after 1979. To employ the
unit root tests and the cointegration tests with structural break, the
empirical evidence demonstrates that economic and financial deregulation
did affect the stability of demand for money in China over the period 1977
to 2002. Moreover, the estimated long-run income and interest elasticity
are respectively 1.01 (1.11) and -0.14 (-0.08) using the real M1 (M2)
equation. In addition, real income and the interest rate are found to be
weakly exogenous. We overall do find structural breakpoints mainly in 1980
and 1993, and they look to match clearly with corresponding critical
financial and economic incidents.
Journal: Applied Economics
Pages: 3185-3197
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994153
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994153
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3185-3197
Template-Type: ReDIF-Article 1.0
Author-Name: Soosung Hwang
Author-X-Name-First: Soosung
Author-X-Name-Last: Hwang
Author-Name: Byung Khun Song
Author-X-Name-First: Byung Khun
Author-X-Name-Last: Song
Title: 'Irrational exuberance' in the long-run UK stock market
Abstract:
Using the macroeconomic data for 1830-2004 in vector error correction
models, we find that the UK stock price was largely in line with the
equilibrium level. However, the UK stock price shows large and slow-moving
positive or negative deviations from the equilibrium, forming cycles of at
least a few decades in length. We also show that the equity premium is as
low as 3.1% for the 175 years, which is far smaller than the 6 to 7% that
has been suggested by many previous studies. Finally, contrary to general
belief, the 1999 UK stock price did not appear to be overvalued in our
study. We suggest that the 25 years of sharp increase in the UK stock
price prior to 1999 can be understood as a mere mean-reversion towards the
long-run equilibrium level.
Journal: Applied Economics
Pages: 3199-3211
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994146
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3199-3211
Template-Type: ReDIF-Article 1.0
Author-Name: Yaping Wang
Author-X-Name-First: Yaping
Author-X-Name-Last: Wang
Author-Name: Shaw Chen
Author-X-Name-First: Shaw
Author-X-Name-Last: Chen
Author-Name: Bing-Xuan Lin
Author-X-Name-First: Bing-Xuan
Author-X-Name-Last: Lin
Author-Name: Liansheng Wu
Author-X-Name-First: Liansheng
Author-X-Name-Last: Wu
Title: The frequency and magnitude of earnings management in China
Abstract:
Earnings management is an indicator of the corporate governance quality
and investor protection standard. We study the frequencies and magnitudes
of earnings management under two different thresholds, zero earnings and
prior earnings, in the Chinese market from 1997 to 2004. We model earnings
as a mixed-normal distribution and obtain parameter estimators that
measure the frequency and magnitude of earnings management. We show that
the practice of earnings management has gone up both in frequency and
magnitude during the post-2000 period. We also find that the frequency and
magnitude of earnings management are higher when firms try to avoid
negative earnings than when firms try to report earnings increase. Our
findings reflect the current economic environment in China and caution
investors on the low-disclosure quality in the Chinese stock market.
Journal: Applied Economics
Pages: 3213-3225
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994138
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3213-3225
Template-Type: ReDIF-Article 1.0
Author-Name: Ekrem Gul
Author-X-Name-First: Ekrem
Author-X-Name-Last: Gul
Author-Name: Sezgin Acikalin
Author-X-Name-First: Sezgin
Author-X-Name-Last: Acikalin
Title: An examination of the Fisher Hypothesis: the case of Turkey
Abstract:
This study examines the famous Fisher Hypothesis (FH) for Turkey. FH
asserts that nominal interest rates adjust on a one-to-one basis to
expected changes in inflation rates. Using the Johansen cointegration
method for the Turkish monthly interest rate and inflation rate data, we
find that it is possible to determine the long-run relationship—but
not the one-to-one basis—between nominal interest rates and
inflation. Our findings suggest that full FH does not hold but there is a
very powerfull Fisher effect in the case of Turkey from 1990 to 2003.
Journal: Applied Economics
Pages: 3227-3231
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994112
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994112
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3227-3231
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Jellal
Author-X-Name-First: Mohamed
Author-X-Name-Last: Jellal
Author-Name: Christophe Nordman
Author-X-Name-First: Christophe
Author-X-Name-Last: Nordman
Author-Name: Francois-Charles Wolff
Author-X-Name-First: Francois-Charles
Author-X-Name-Last: Wolff
Title: Evidence on the glass ceiling effect in France using matched worker-firm data
Abstract:
In this article, we investigate the relevance of the glass ceiling
hypothesis in France, according to which there exist larger gender wage
gaps at the upper tail of the wage distribution. Using a matched
worker-firm data set of about 1 30 000 employees and 14 000 employers, we
estimate quantile regressions and rely on a principal component analysis
to summarize information specific to the firms. Our different results show
that accounting for firm-related characteristics reduces the gender
earnings gap at the top of the distribution, but the latter still remains
much higher at the top than at the bottom. Furthermore, a quantile
decomposition shows that the gender wage gap is mainly due to differences
in the returns to observed characteristics rather than in differences in
characteristics between men and women.
Journal: Applied Economics
Pages: 3233-3250
Issue: 24
Volume: 40
Year: 2008
X-DOI: 10.1080/00036840600994070
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994070
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Handle: RePEc:taf:applec:v:40:y:2008:i:24:p:3233-3250
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of agriculture: introduction and overview
Abstract:
We introduce and summarize the results of nine empirical studies that
make up this special issue on agricultural economics. The research
includes studies applied to the US, Bangladesh, Northern Ireland, Germany,
Poland, Taiwan, Tunisia and Italy.
Journal: Applied Economics
Pages: 1-3
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802704236
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802704236
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:1-3
Template-Type: ReDIF-Article 1.0
Author-Name: Masato Nakane
Author-X-Name-First: Masato
Author-X-Name-Last: Nakane
Author-Name: Loren Tauer
Author-X-Name-First: Loren
Author-X-Name-Last: Tauer
Title: Empirical dairy profits under fluctuating prices
Abstract:
Production theory suggests that average profits would be greater with
more variation in prices, if farmers correctly adjust use of inputs and
outputs to changes in prices. We provide an empirical nonparametric
analysis of farmers' profits under price changes over 12 years using an
unbalanced panel of dairy farmers. Each year that a farm participated, we
have quantities of milk and other outputs and usage of 30 different
inputs. If that farmer participated in the survey the following year, the
profit that farmer would have earned that following year using the netput
vector of the previous year and the price vector of the following year was
calculated. This passive profit was compared to the actual profit the
farmer produced the following year. Of the 2371 observations, 56% show
netput vector changes which enhanced net profit implying that as a group,
these farmers were not generally able to correctly adjust inputs in
response to price changes consistently. Logit regression failed to
differentiate characteristics of farmers who were successful.
Journal: Applied Economics
Pages: 5-15
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840801935393
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801935393
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:5-15
Template-Type: ReDIF-Article 1.0
Author-Name: M. N. Asadullah
Author-X-Name-First: M. N.
Author-X-Name-Last: Asadullah
Author-Name: S. Rahman
Author-X-Name-First: S.
Author-X-Name-Last: Rahman
Title: Farm productivity and efficiency in rural Bangladesh: the role of education revisited
Abstract:
This article reassesses the debate over the role of education in farm
production in Bangladesh using a large dataset on rice producing
households from 141 villages. Average and stochastic production frontier
functions are estimated to ascertain the effect of education on
productivity and efficiency. A full set of proxies for farm education
stock variables are incorporated to investigate the 'internal' as well as
'external' returns to education. The external effect is investigated in
the context of rural neighbourhoods. Our analysis reveals that in addition
to raising rice productivity and boosting potential output, household
education significantly reduces production inefficiencies. However, we are
unable to find any evidence of the externality benefit of schooling -
neighbour's education does not matter in farm production. We discuss the
implication of these findings for rural education programmes in
Bangladesh.
Journal: Applied Economics
Pages: 17-33
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019125
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019125
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:17-33
Template-Type: ReDIF-Article 1.0
Author-Name: J. Davis
Author-X-Name-First: J.
Author-X-Name-Last: Davis
Author-Name: P. Caskie
Author-X-Name-First: P.
Author-X-Name-Last: Caskie
Author-Name: M. Wallace
Author-X-Name-First: M.
Author-X-Name-Last: Wallace
Title: Economics of farmer early retirement policy
Abstract:
We estimate the structural effects, costs and potential efficiency gains
that might arise from the introduction of an Early Retirement Scheme for
farmers in Northern Ireland using data from the Farm Business Survey and a
separate survey of 350 farmers aged between 50 and 65. Modelling results
suggest that farm scale is a significant determinant of profit per hectare
but that the age of the operator is not. The economic gains from releasing
land through a scheme were conditional on transfers bringing about
significant farm expansion and changes in land use. When these conditions
were satisfied pensions payments of only about one-third the statutory
maximum could be justified. Survey responses indicated that participation
in the scheme would bring forward farmers' retirement age by an average of
4 years. Moreover, 'deadweight' payments would equate to about 23% of
potential total expenditure. Overall, the economic case for the
introduction of an Early Retirement Scheme to Northern Ireland is judged
to be weak.
Journal: Applied Economics
Pages: 35-43
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994211
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994211
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:35-43
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Glauben
Author-X-Name-First: Thomas
Author-X-Name-Last: Glauben
Author-Name: Martin Petrick
Author-X-Name-First: Martin
Author-X-Name-Last: Petrick
Author-Name: Hendrik Tietje
Author-X-Name-First: Hendrik
Author-X-Name-Last: Tietje
Author-Name: Christoph Weiss
Author-X-Name-First: Christoph
Author-X-Name-Last: Weiss
Title: Probability and timing of succession or closure in family firms: a switching regression analysis of farm households in Germany
Abstract:
In a two-step econometric approach that corrects for selectivity bias, we
analyse the determinants of the probability of succession and the timing
of succession or closure in a unique sample of 233 North-German family
farms. We set up the succession decision as an intertemporal optimization
problem. The empirical results show that larger and more profitable farms,
which are specialized in dairy production are significantly more likely to
have an intra-family successor. We find that a nonagricultural education
of the current manager or the successor delay succession. When the family
decided to stop farming operations, nonagricultural education of the owner
delays closure of the farm. Closure occurs earlier if the manager is able
to lease out the land in the process of retirement. Although farm
households react to incentives originating from tax and pension
regulations, many important determinants of succession are beyond the
control of policymakers.
Journal: Applied Economics
Pages: 45-54
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131722
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131722
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:45-54
Template-Type: ReDIF-Article 1.0
Author-Name: Axel Tonini
Author-X-Name-First: Axel
Author-X-Name-Last: Tonini
Author-Name: Roel Jongeneel
Author-X-Name-First: Roel
Author-X-Name-Last: Jongeneel
Title: The distribution of dairy farm size in Poland: a markov approach based on information theory
Abstract:
This article sets out to analyse the evolution of the dairy farm
structure of Poland during the post-socialist period. After focusing on
how the farm structure has changed over time, an instrumental variable
generalized cross entropy estimator is used to develop and estimate a
Markov model in order to explore how farm structure will probably develop
in the coming decade. The estimator exploits both sample data and prior
information, including general and plausible information on farm mobility
and structural adjustments based on independent literature. Next, several
statistical indicators are computed for farm mobility and for which farms
are likely to survive. Finally, milk projections are made and related to
policy scenarios. The projections show that the number of dairy farms will
continue to decline, but the number of medium and large farms will
increase. In the coming decade, subsistence dairy farms are expected to
leave the sector slowly. Milk projections show that under the status quo,
milk quotas will be binding and overrun, whereas under the 'soft landing'
scenario they appear to be only binding after 2010.
Journal: Applied Economics
Pages: 55-69
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701704394
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704394
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:55-69
Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Hao Chang
Author-X-Name-First: Hung-Hao
Author-X-Name-Last: Chang
Author-Name: Richard Boisvert
Author-X-Name-First: Richard
Author-X-Name-Last: Boisvert
Title: Are farmers' decisions to work off the farm related to their decisions to participate in the conservation reserve program?
Abstract:
Since both working off the farm and participating in the Conservation
Reserve Program (CRP) remove important resources from US agricultural
production, we utilize two econometric specifications to test hypotheses
regarding whether these two decisions by farmers are independent. We find
statistical evidence that decisions to participate in CRP and work off the
farm are correlated. Characteristics of farm households and farm
operations affect both decisions directly and indirectly, as do local
economic conditions and participation in other farm programs. To
illustrate their importance, we simulate the combined direct and indirect
effects of changes in decoupled payments and farm size on the
probabilities of farm households engaging in these two activities. We also
illustrate that the probability of engaging in these two activities
depends on whether the farm is located in a state, or local agricultural
district or participates in a related farmland retention program.
Journal: Applied Economics
Pages: 71-85
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701720861
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720861
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:71-85
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Yi-Chung Hsu
Author-X-Name-First: Yi-Chung
Author-X-Name-Last: Hsu
Title: Endogenous structural breaks, public investment in agriculture and agricultural land productivity in Taiwan
Abstract:
Using time-series data for Taiwan's agricultural sector and with the
government's public investment in the agricultural sector serving as a
proxy variable for nonfarm current inputs aside from the original labour
and capital input variables usually taken into consideration, this article
examines the relationship between public investment in agriculture (public
investment/land) and agricultural land productivity (output/land) in
Taiwan. Our main findings are as follows. First, the cointegration test
reveals that public investment in agriculture and the productivity of
agricultural land exhibit a significant positive relationship in the long
run, where the elasticity of land productivity in relation to public
investment in agriculture is 0.55. Second, when controlling for endogenous
structural breaks, the long-run equilibrium relationship for the
productivity of the agricultural land model is still supported. Third, the
results of the weak exogeneity test indicate that a causal relationship
exists in the long run between public investment in agriculture and the
productivity of land, indicating that the growth of the agricultural
sector must in the long run be based on the government's public investment
in the agricultural sector. Furthermore, as the agricultural sector grows,
this growth is able to stimulate public investment on the part of the
government in the agricultural sector, so that the two affect each other.
Fourth, from the short-run error correction model estimation, it is found
that public investment in agriculture is a major means of adjusting for
the disequilibria that occur within the system. Fifth, in the short run,
the unidirectional causal relationship in terms of the productivity of
agricultural land on public investment in agriculture is established,
otherwise it is not established. From this it can be seen that in the
short run, the government is unable to reveal the effectiveness of its
public investment in agriculture.
Journal: Applied Economics
Pages: 87-103
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131748
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131748
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:87-103
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Gil
Author-X-Name-First: J. M.
Author-X-Name-Last: Gil
Author-Name: M. BenKaabia
Author-X-Name-First: M.
Author-X-Name-Last: BenKaabia
Author-Name: H. E. Chebbi
Author-X-Name-First: H. E.
Author-X-Name-Last: Chebbi
Title: Macroeconomics and agriculture in Tunisia
Abstract:
This article aims to analyse the impact of changes in the monetary policy
and the exchange rate on agricultural supply, prices and exports. The
methodology used is based on the multivariate cointegration approach. Ten
variables are considered - interest and exchange rates, money supply,
inflation, agricultural output and input prices, agricultural supply and
exports, income and the rate of commercial openness. The sample period
covers annual data from 1967 to 2002. Due to the short sample period, two
subsystems are considered. First, long-run relationships are identified in
each subsystem. Second, both subsystems are merged in order to calculate
the short-run dynamics. The results indicate that changes in macroeconomic
variables have an effect on the agricultural sector, but the reverse
effect does not hold.
Journal: Applied Economics
Pages: 105-124
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604420
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604420
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:105-124
Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio Canavari
Author-X-Name-First: Maurizio
Author-X-Name-Last: Canavari
Author-Name: Rodolfo Nayga
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Nayga
Title: On consumers' willingness to purchase nutritionally enhanced genetically modified food
Abstract:
This study assesses consumers' willingness to purchase genetically
modified (GM) food products with two different types of benefits: an input
(i.e., reduced pesticides) and an output trait benefit (i.e.,
nutritionally enhanced). Data were collected using a telephone survey of
an Italian households sample. Discrete choice approach is used to elicit
the purchase intentions of the respondents. Four separate probit models
are estimated to examine the effect of various factors on choices. Results
suggest that majority of Italians are not willing to buy GM food products
even if they are nutritionally enhanced. However, more consumers are
willing to buy a nutritionally enhanced plant based GM product than a
traditional plant based GM (with input trait benefit). Willingness to buy
for a nutritionally enhanced animal based GM product and for a traditional
animal based GM product with input trait benefit are similar. Consumers
unwilling to buy GM food would not buy it even if it is nutritionally
enhanced and has lower price. However, there is a niche of consumers who
are willing to buy nutritionally enhanced GM food products even at a
premium. Knowledge of science and trust in scientists consistently affect
Italian consumers' willingness to buy the GM products.
Journal: Applied Economics
Pages: 125-137
Issue: 1
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367564
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367564
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Handle: RePEc:taf:applec:v:41:y:2009:i:1:p:125-137
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Title: Are devaluations contractionary in MENA countries?
Abstract:
Currency depreciation reduces aggregate supply by raising cost of
imported inputs and increases aggregate demand by increasing its net
export component. Depending on the relative strength of the two effects,
depreciation could be expansionary or contractionary. We employ the bounds
testing approach to cointegration and error-correction modelling to
evaluate the effects of exchange rate depreciation on output growth, both
in the short and in the long-run, across a sample of MENA countries.
Exchange rate fluctuations are found to be important to fluctuations in
real output growth in the short-run. Anticipated exchange rate
depreciation may induce long-run expansionary or contractionary effects on
output supply. Consistent with theory's predictions, the expansionary
effect of unanticipated depreciation is only transitory on output growth.
Nonetheless, unanticipated depreciation is found to have a contractionary
effect on output growth in the long-run via an increase in the cost of
imported inputs.
Journal: Applied Economics
Pages: 139-150
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994195
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994195
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:139-150
Template-Type: ReDIF-Article 1.0
Author-Name: Reed Neil Olsen
Author-X-Name-First: Reed Neil
Author-X-Name-Last: Olsen
Title: Marital status in a developing economy: gender, ethnicity and family structure
Abstract:
This article employs population survey data for Trinidad and Tobago to
investigate the likelihood of being married, both legal and common law in
the present or the past, as compared to being never married, in a
developing economy. The article finds support for the sex-specialized
theory of marital formation, with men valued more and women valued less
for their economic contributions to the family. Socioeconomic status and
ethnicity play an important role in marital formation with sex
specialization less likely to occur among Africans than the more
advantaged ethnic groups. One of the consistent findings is that family
structure matters crucially in predicting both legal and common law
marriages. For example, living in a large, multigenerational household
tends to impact the likelihood of marriage, as compared to remaining
single, in opposite ways for men and women, with men in large households
more likely to be married but women less likely to be married.
Journal: Applied Economics
Pages: 151-169
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994203
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994203
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:151-169
Template-Type: ReDIF-Article 1.0
Author-Name: Minhaj Mahmud
Author-X-Name-First: Minhaj
Author-X-Name-Last: Mahmud
Title: On the contingent valuation of mortality risk reduction in developing countries
Abstract:
Using the contingent valuation method in developing countries to value
mortality risk reduction is particularly challenging because of the low
level education of the respondents. In this article, we investigate
whether some brief training regarding probability and risk concepts has
any significant effect on the willingness-to-pay (WTP) responses. We
elicit individuals' risk perceptions by providing information on age
specific mortality risks and find that people on average overestimate the
mortality risk at younger ages and underestimate it at older ages. Our
results indicate a significantly higher WTP for the trained sub-sample and
WTP is sensitive to the magnitude of risk reduction for both the
sub-samples.
Journal: Applied Economics
Pages: 171-181
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994252
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994252
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:171-181
Template-Type: ReDIF-Article 1.0
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Title: US and Canadian livestock prices: market integration and trade dependence
Abstract:
Cointegration of Canadian and US livestock prices points to the existence
of market integration in the period January 1996 to December 2004. Trade
flows of livestock and beef products were nonexistent between Canada and
the United States for many months in 2003 and 2004 suggesting market
segmentation. This lack of trade in beef and livestock was due to
livestock/beef import bans by both countries due to bovine spongiform
encephalopathy. It was also determined that Canada's trade dependence in
livestock and beef is cointegrated with Canadian and US livestock prices.
However, as the trade dependence variable is shocked, the effects on
Canadian and US prices are opposite although one would expect that in an
integrated market the price responses to an exogenous shock would be
similar or statistically identical. This result reinforces the case
against the use of price cointegration analysis in determining presence
(or absence) of market integration. Empirical results in this article
raise some very difficult questions. Gains from trade are well documented.
Yet, once a country becomes very trade dependent, the prices in it become
much more vulnerable to exogenous shocks that reduce the trade flows.
Journal: Applied Economics
Pages: 183-193
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994260
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994260
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:183-193
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Collins
Author-X-Name-First: Alan
Author-X-Name-Last: Collins
Author-Name: Victor Fernandez-Blanco
Author-X-Name-First: Victor
Author-X-Name-Last: Fernandez-Blanco
Author-Name: Juan Prieto-Rodriguez
Author-X-Name-First: Juan
Author-X-Name-Last: Prieto-Rodriguez
Title: Characteristics of buyers and renters of cultural goods: the case of movies
Abstract:
This article identifies the characteristics of consumers of movies,
watched on videotapes, in their homes. Models of the frequency of movie
video buying and renting by individuals are estimated using data from the
Spanish Cultural Consumption Habits Survey (Encuesta sobre Habitos de
Consumo Cultural). This survey featured information about videotapes
rented and bought in Spain throughout 1998. Applying a multinomial probit
modelling framework, this study analyses whether there are two different
video markets (renting and buying) and any discernible socio-economic
characteristics for their respective consumers. The influence of film
genres on the renting of movie videotapes is also considered.
Journal: Applied Economics
Pages: 195-210
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007203
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007203
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:195-210
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Manuela Gonzalez
Author-X-Name-First: Maria Manuela
Author-X-Name-Last: Gonzalez
Author-Name: Sergio Perelman
Author-X-Name-First: Sergio
Author-X-Name-Last: Perelman
Author-Name: Lourdes Trujillo
Author-X-Name-First: Lourdes
Author-X-Name-Last: Trujillo
Title: Tracking the stepwise effects of regulatory reforms over time: a 'back-door' approach
Abstract:
Most of the literature on the efficiency effects of regulatory reforms
ignores the gradual nature of the implementation of these reforms. This
article describes a new simple data manipulation that minimizes data
requirements to measure econometrically the impact on efficiency of each
stage of multi-stages regulatory reforms. The approach can easily be
implemented using standard stochastic frontier software programs. It is
illustrated with data on the Spanish port system, which went through a
two-stage reform during the 1990s.
Journal: Applied Economics
Pages: 211-218
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994294
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994294
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:211-218
Template-Type: ReDIF-Article 1.0
Author-Name: P. Garcia-del-Barrio
Author-X-Name-First: P.
Author-X-Name-Last: Garcia-del-Barrio
Author-Name: L. A. Gil-Alana
Author-X-Name-First: L. A.
Author-X-Name-Last: Gil-Alana
Title: New revelations about unemployment persistence in Spain: time-series and panel data approaches using regional data
Abstract:
This article aims to re-examine the persistence of unemployment in Spain.
For this purpose, we use time-series and cross-section analysis. From a
time-series viewpoint we disaggregate unemployment by regions, and use
unit root tests, AR coefficients and fractional differencing parameters as
indicators of persistence. For the cross-section approach, we first
estimate mean regressions of regional unemployment rates. Then, using a
panel of 114 periods and 50 provinces, we estimate pooled, fixed and
random effects models. Finally, following some recent developments, we
implement several panel data unit root tests. Previous studies had already
shown the strong persistence of Spanish unemployment. Our disaggregated
analysis extends the finding to reveal that the persistence is greater in
the most industrialized regions. The results also suggest that a
structural break took place in 1994, implying a decline in the
unemployment persistence since then.
Journal: Applied Economics
Pages: 219-236
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994237
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994237
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:219-236
Template-Type: ReDIF-Article 1.0
Author-Name: Zeynel Abidin Ozdemir
Author-X-Name-First: Zeynel Abidin
Author-X-Name-Last: Ozdemir
Author-Name: Hasan Olgun
Author-X-Name-First: Hasan
Author-X-Name-Last: Olgun
Title: The Feldstein - Hoiroka puzzle across countries
Abstract:
This article tests the Feldstein-Hoiroka 'puzzle' for a sample of 49
countries from two angles; that of co-movements in the saving-investment
series and the magnitude of the saving-retention coefficient (SRC). The
overall conclusion we obtain from the results of three different
cointegration tests leaves no room for 'puzzle' in the majority of the
countries included in the sample. On the other hand, various statistical
tests applied to the SRCs show that there are significant differences
among the high-income, middle-income and low-income country groups with
regards to the salient aspects of capital mobility. First, there are
significant differences in the average SRCs of the country groups. Second,
the SRCs are differently distributed around their means among the country
groups. The results yielded by a third test dictate that future research
should pay more attention to the underlying distribution of the SRCs
within country groups when testing the 'country size' argument.
Journal: Applied Economics
Pages: 237-247
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994245
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994245
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:237-247
Template-Type: ReDIF-Article 1.0
Author-Name: J. Colin Glass
Author-X-Name-First: J.
Author-X-Name-Last: Colin Glass
Author-Name: Gillian McCallion
Author-X-Name-First: Gillian
Author-X-Name-Last: McCallion
Author-Name: Donal McKillop
Author-X-Name-First: Donal
Author-X-Name-Last: McKillop
Author-Name: Syamarlah Rasaratnam
Author-X-Name-First: Syamarlah
Author-X-Name-Last: Rasaratnam
Author-Name: Karl Stringer
Author-X-Name-First: Karl
Author-X-Name-Last: Stringer
Title: Best-practice benchmarking in UK higher education: new nonparametric approaches using financial ratios and profit efficiency methodologies
Abstract:
The neglected issue of using profit efficiency for the best-practice
benchmarking of UK universities is explored to see whether this supports
the policy stance of encouraging more specialized university production.
The article also investigates whether nonparametric modelling with
financial ratios, in contrast to nonparametric modelling based on the
prices and quantities of each university's inputs and outputs, can yield
ready insights into this profit efficiency issue. The empirical results,
using two new approaches, confirm that more specialized university
production yields relatively higher performance on average than less
specialized production. The results also highlight certain advantages of
financial ratios modelling.
Journal: Applied Economics
Pages: 249-267
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994278
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994278
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:249-267
Template-Type: ReDIF-Article 1.0
Author-Name: Mubariz Hasanov
Author-X-Name-First: Mubariz
Author-X-Name-Last: Hasanov
Title: A note on efficiency of Australian and New Zealand stock markets
Abstract:
In this article we re-examine efficiency of the Australia's and New
Zealand's stock markets, extending recent work of Narayan (2005). For this
purpose we apply the nonlinear unit root test procedure recently developed
by Kapetanios et al. (2003). The nonlinear unit root tests reject the null
hypothesis of unit root, suggesting that the both stock markets are not
weak form efficient, contrary to the findings of Narayan (2005).
Journal: Applied Economics
Pages: 269-273
Issue: 2
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994286
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994286
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Handle: RePEc:taf:applec:v:41:y:2009:i:2:p:269-273
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Robson
Author-X-Name-First: Martin
Author-X-Name-Last: Robson
Title: Structural change, specialization and regional labour market performance: evidence for the UK
Abstract:
While structural change and regional differences in the pattern of
employment specialization are widely perceived to be significant factors
in accounting for disparities in the labour market performance of regions
in the United Kingdom, there have been relatively few recent attempts to
gather detailed evidence on this issue. The current study aims to fill
this gap by examining the effects of structural change and associated
changes in the pattern of employment specialization on three key
indicators of regional labour market performance: the rate of employment
growth, the unemployment rate and the rate of nonemployment. The findings
indicate that while industry structure has statistically significant
effects on regional labour market performance, the quantitative
significance of these effects is relatively small.
Journal: Applied Economics
Pages: 275-293
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007278
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007278
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:275-293
Template-Type: ReDIF-Article 1.0
Author-Name: Zlata Hajro
Author-X-Name-First: Zlata
Author-X-Name-Last: Hajro
Author-Name: Joseph Joyce
Author-X-Name-First: Joseph
Author-X-Name-Last: Joyce
Title: A true test: do IMF programs hurt the poor?
Abstract:
This article analyses the effect of IMF programs on poverty with data
from 82 countries during 1985-2000. Two indicators of poverty, infant
mortality rates and the human development index (HDI), are utilized, and
the effects of the IMF's concessionary and nonconcessionary programs are
investigated, as well as economic and institutional factors. The results
show that the IMF's programs have no significant direct impact on poverty.
Growth and good institutions, however, both have significant impacts,
lowering infant mortality and increasing the HDI. The Fund's concessionary
programs increase the impact of growth on lowering infant mortality, while
the nonconcessionary programs lower the impact of growth on the HDI.
“Where a great proportion of the people are suffered to languish in
helpless misery, that country must be ill policed, and wretchedly
governed; a decent provision for the poor is the true test of
civilization.” -Samuel Johnson, 1791 “… once a
country was in crisis, IMF funds and programs not only failed to stabilize
the situation but in many cases actually made things worse, especially for
the poor.” -Joseph Stiglitz, 2002
Journal: Applied Economics
Pages: 295-306
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007229
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007229
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:295-306
Template-Type: ReDIF-Article 1.0
Author-Name: T. Randolph Beard
Author-X-Name-First: T. Randolph
Author-X-Name-Last: Beard
Author-Name: Steven Caudill
Author-X-Name-First: Steven
Author-X-Name-Last: Caudill
Title: Who's number one? - ranking college football teams for the 2003 season
Abstract:
This article uses the method of pairwise comparisons to rank college
football teams. This issue is of some importance due to debate over, which
team actually won the national championship in 2003-2004. Some polls
ranked LSU number 1 while others ranked USC number 1. Our method, based on
pairwise comparisons, finds LSU to be clearly ranked number 1 but USC ends
up ranked third behind Miami of Ohio. The Southeastern Conference (SEC)
does well in our ranking scheme because the SEC produced not only the best
team in the country (LSU) but also the only team to beat the best team in
the country (UF). We also find that our ranking does not correspond very
closely to rankings in either the AP or Coaches poll. Auxiliary
regressions with our rank as the independent variable explain 58 and 50%
of the variation in the AP and Coaches rankings, respectively.
Journal: Applied Economics
Pages: 307-310
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007245
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007245
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:307-310
Template-Type: ReDIF-Article 1.0
Author-Name: Sven Anders
Author-X-Name-First: Sven
Author-X-Name-Last: Anders
Author-Name: Stanley Thompson
Author-X-Name-First: Stanley
Author-X-Name-Last: Thompson
Author-Name: Roland Herrmann
Author-X-Name-First: Roland
Author-X-Name-Last: Herrmann
Title: Markets segmented by regional-origin labelling with quality control
Abstract:
It is the objective of this paper to provide a methodological framework
for the analysis of regional marketing programs which inlclude
regional-origin labelling as well as quality assurance and control. Such
programs are increasingly being introduced in Europe and other parts of
the world as a means against quality uncertainty in globalized markets. An
equilibrim - displacement model is developed for a segmented market with
differential qualities that can be utilized for a broad variety of
marketing programs. It is applied to one selected European case, i.e.
“Gepruefte Qualitaet - Bayern”. It is shown that the price
impacts on high-quality and low-quality segments depend crucially on
substitutive relationships between the markets and the advertising
elasticities. Welfare implications for producers in a program depend
strongly on advertising elasticities, too, but also on the costs of
participation including quality control and on the co-financing mechanism
between government and producers.
Journal: Applied Economics
Pages: 311-321
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007237
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007237
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:311-321
Template-Type: ReDIF-Article 1.0
Author-Name: Mario Quagliariello
Author-X-Name-First: Mario
Author-X-Name-Last: Quagliariello
Title: Macroeconomic uncertainty and banks' lending decisions: the case of Italy
Abstract:
This article discusses the role that macroeconomic uncertainty plays in
banks' decisions on the optimal asset allocation. Following the portfolio
model proposed by Baum et al. (2005), the article aims at disentangling
how Italian banks choose between loans and risk-free assets when
uncertainty on macroeconomic conditions increases. The econometric results
confirm that macroeconomic uncertainty is a significant determinant of
banks' investment decisions, also after controlling for other factors. In
periods of increasing turmoil, banks' ability to accurately forecast
future returns is hindered and herding behaviour tends to emerge, as
witnessed by the reduction of the cross-sectional variance of the share of
loans held in portfolio.
Journal: Applied Economics
Pages: 323-336
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007286
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007286
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:323-336
Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Ottoz
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Ottoz
Author-Name: Graziella Fornengo
Author-X-Name-First: Graziella
Author-X-Name-Last: Fornengo
Author-Name: Marina Di Giacomo
Author-X-Name-First: Marina
Author-X-Name-Last: Di Giacomo
Title: The impact of ownership on the cost of bus service provision: an example from Italy
Abstract:
This article examines the potential impact of ownership on the cost of
bus service provision for a sample of 65 private and 12 public companies
providing local public transit (LPT) in Piedmont (Italy) from 1998 to
2002. A translog cost frontier is estimated using the model in Battese and
Coelli (1995) where inefficiency scores are allowed to vary across firms
and over time. A public ownership dummy is included in the inefficiency
model and it is always positive and significant. Density and scale
economies and cost inefficiencies are then computed. Private companies
seem to experience higher density and scale economies than public ones.
Cost inefficiencies appear higher in the public sample.
Journal: Applied Economics
Pages: 337-349
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007260
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007260
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:337-349
Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Business expenditures on R&D and trade performances in Australia: is there a link?
Abstract:
This article, empirically examines the dynamic causal link between
business research and development (R&D) expenditures and trade performance
in Australia. Based on cointegration and error-correction modelling,
Granger causality tests, variance decomposition and impulse response
functions are used for this purpose. The results show that a long-run
relationship exists between the trade variables and R&D expenditure and a
unidirectional causality run from R&D expenditure to exports, imports and
net exports. Further, the variance decomposition and impulse response
functions confirm that, a significant portion of fluctuations in the trade
variables beyond the sample period is explained by R&D expenditure.
Therefore, government policies that lift expenditures on business R&D are
shown to contribute to the narrowing of Australia's chronic trade
deficits.
Journal: Applied Economics
Pages: 351-361
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007302
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007302
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:351-361
Template-Type: ReDIF-Article 1.0
Author-Name: Jay Squalli
Author-X-Name-First: Jay
Author-X-Name-Last: Squalli
Author-Name: Kenneth Wilson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Wilson
Title: Openness and access
Abstract:
This article uses a data set from the World Economic Forum that
quantitatively captures nonexistent or scarce data to test the
relationship between trade openness and market access. In recognition of
the diversity and range of trade openness measures, this article uses five
different openness measures and one measure of market access comprising
public institutions, the regulatory environment, and network industries.
This article finds that all three components matter and that better market
access leads to greater trade openness in both nominal and real terms.
Journal: Applied Economics
Pages: 363-379
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007294
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007294
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:363-379
Template-Type: ReDIF-Article 1.0
Author-Name: Cem Payaslioglu
Author-X-Name-First: Cem
Author-X-Name-Last: Payaslioglu
Title: A tail index tour across foreign exchange rate regimes in Turkey
Abstract:
This article uses daily foreign exchange data in the USD/TRL foreign
exchange market to test for structural breaks due to exchange rate regime
switches. The analysis focus on extreme movements of exchange rate returns
across different regimes using tail index indicators. Sequential and
rolling tests, developed by Quintos et al (2001) are used to identify the
dates of breaks in the Turkish exchange rate for the period 28 January
1980 to 11 October 2004 and for the sub-periods which cover the fixed
exchange rate regime from 28 January 1980 to 22 February 2001 and the
flexible exchange rate regime from 23 February 2001 to 11 October 2004.
Compelling evidence for breaks in the tail index is found not only across
but also within different exchange rate regimes - especially within the
fixed regime. Moreover, breakpoint dates are clustered right before the
crisis in 2001. This makes the tail index indicator a fairly good
candidate for a variable to be used in early warning systems for currency
crises.
Journal: Applied Economics
Pages: 381-397
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007211
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007211
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:381-397
Template-Type: ReDIF-Article 1.0
Author-Name: Arielle Beyaert
Author-X-Name-First: Arielle
Author-X-Name-Last: Beyaert
Author-Name: Juan Jose Perez-Castejon
Author-X-Name-First: Juan Jose
Author-X-Name-Last: Perez-Castejon
Title: Markov-switching models, rational expectations and the term structure of interest rates
Abstract:
In order to evaluate the efficiency of the monetary transmission
mechanism, we develop the formulas for testing rational expectations
theory in the term structure of interest rates with VAR models of
stochastically switching regimes in which all the parameters are regime
dependent. These formulas are obtained for the strict version of rational
expectations as well as for the case where measurement errors are assumed
in the expectations relationship. They are extensible to other contexts
that involve variables linked by rational-expectations behaviours. The
testing procedure is implemented on interest rates of the Spanish
inter-bank money market. Measurement errors must be assumed to find signs
favourable to the theory.
Journal: Applied Economics
Pages: 399-412
Issue: 3
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007195
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007195
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Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:399-412
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of health: introduction and overview
Abstract:
We introduce and summarize the results of 12 empirical studies that make
up this special issue on health economics, covering a wide range of
countries and issues.
Journal: Applied Economics
Pages: 413-415
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840902757241
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902757241
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:413-415
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Spinks
Author-X-Name-First: Jean
Author-X-Name-Last: Spinks
Author-Name: Bruce Hollingsworth
Author-X-Name-First: Bruce
Author-X-Name-Last: Hollingsworth
Title: Cross-country comparisons of technical efficiency of health production: a demonstration of pitfalls
Abstract:
It has been proposed that cross-country comparisons of the technical
efficiency of health production, estimated using data envelopment analysis
(DEA), have useful applications for policy makers. In theory such an
analysis utilizes measures of the socioeconomic determinants of health
relevant to all social policy, not just health policy. Using OECD and WHO
data, this article critically analyses a number of outstanding theoretical
questions regarding the use of DEA in this setting. It concludes that
until such questions are addressed, the resultant implications for policy
will be based on misleading information.
Journal: Applied Economics
Pages: 417-427
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604354
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:417-427
Template-Type: ReDIF-Article 1.0
Author-Name: Zijun Wang
Author-X-Name-First: Zijun
Author-X-Name-Last: Wang
Title: The determinants of health expenditures: evidence from US state-level data
Abstract:
Most macro studies of what determines health expenditures have used the
same panel of OECD country-level data. Based on a more homogeneous panel
data set of US states we constructed, this note applies the model
selection procedure to identify the determinants of health expenditures at
the state level. We find that the four key factors are gross state
products, the proportion of the population over the age of 65, the degree
of urbanization and the number of hospital beds. The cross-section income
elasticity of health care is around 0.7, implying that health care is a
necessity rather than a luxury good at the state level. The (relative)
price of health care varies significantly across states but does not
appear to have real effects on the amount of resources (measured in real
dollars) a state devotes to health care.
Journal: Applied Economics
Pages: 429-435
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701704527
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704527
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:429-435
Template-Type: ReDIF-Article 1.0
Author-Name: Tetsuji Yamada
Author-X-Name-First: Tetsuji
Author-X-Name-Last: Yamada
Author-Name: Chia-Ching Chen
Author-X-Name-First: Chia-Ching
Author-X-Name-Last: Chen
Author-Name: Tadashi Yamada
Author-X-Name-First: Tadashi
Author-X-Name-Last: Yamada
Author-Name: I-Ming Chiu
Author-X-Name-First: I-Ming
Author-X-Name-Last: Chiu
Author-Name: John Smith
Author-X-Name-First: John
Author-X-Name-Last: Smith
Title: Healthcare services accessibility of children in the USA
Abstract:
The increase in the number of children without access to healthcare
services is an increasingly urgent issue in the United States. By using
data from the Community Tracking Study Household Survey 1996 to 1997, we
focus this study on the determinants that cause for the widening gap of
healthcare service accessibility among children, 18 years and under, in
the USA. Our empirical results suggest that factors such as the
out-of-pocket price of healthcare services, household income, years of
education by parent (or guardian), health insurance coverage, access to
healthcare provider (availability of regular provider, obtaining an
appointment, and travelling time) and provider-patient interaction
strongly determine the actual use of outpatient services by children as
realized access (i.e. accessibility).
Journal: Applied Economics
Pages: 437-450
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701720762
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720762
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:437-450
Template-Type: ReDIF-Article 1.0
Author-Name: Marta Pascual
Author-X-Name-First: Marta
Author-X-Name-Last: Pascual
Author-Name: David Cantarero
Author-X-Name-First: David
Author-X-Name-Last: Cantarero
Title: Intergenerational health mobility: an empirical approach based on the ECHP
Abstract:
Despite the importance of the study of health mobility, few attempts have
been made to measure intergenerational mobility not only in the European
Union but also in other countries such as United States. This article is
focused on the study of intergenerational health mobility using data from
the European community household panel (ECHP). In particular, the
relationships between self-assessed health of parents and their sons are
analysed. The evidence obtained suggests that, in Spain, sons' reported
health depends significantly on the self-assessed health of their fathers.
Journal: Applied Economics
Pages: 451-458
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367523
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367523
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:451-458
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Bilodeau
Author-X-Name-First: Daniel
Author-X-Name-Last: Bilodeau
Author-Name: Pierre-Yves Cremieux
Author-X-Name-First: Pierre-Yves
Author-X-Name-Last: Cremieux
Author-Name: Pierre Ouellette
Author-X-Name-First: Pierre
Author-X-Name-Last: Ouellette
Title: Hospital performance in a noncompetitive environment
Abstract:
In this article, we perform a quantitative analysis of the performance of
hospital services in a nonmarket environment based on a very complete data
set. Evaluating efficiency in a nonmarket system is important since the
absence of market mechanisms could yield large inefficiencies. In fact, we
show that hospital performance varies greatly across institutions.
Specifically, our results suggest that hospitals with high levels of
quasi-fixed factors are less efficient than other institutions. In
general, hospitals performed very differently even after controlling for
differences in services, hospital and patient characteristics. All in all,
increased efficiencies could lead to potential savings, for the Quebec
government, in the hundreds of millions of dollars.
Journal: Applied Economics
Pages: 459-468
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701564384
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564384
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:459-468
Template-Type: ReDIF-Article 1.0
Author-Name: R. Todd Jewell
Author-X-Name-First: R.
Author-X-Name-Last: Todd Jewell
Title: Demand for prenatal health care in South America
Abstract:
This study extends existing research on prenatal care demand to the South
American countries of Bolivia, Columbia and Peru, using data from the
Demographic and Health Surveys and employing two measures of prenatal
care: whether prenatal care was ever initiated and a measure of prenatal
care adequacy that includes information on month of initiation and number
of visits. The results indicate that prenatal care demand in South America
is significantly affected by a woman's age, previous pregnancy experience,
education and marital status. Furthermore, household wealth and the degree
of wantedness of the child significantly influence prenatal care demand.
Since prenatal care use has been shown to improve infant and maternal
health, there may be substantial benefits from economic and public health
policies that target these determinants of prenatal care in the countries
under study.
Journal: Applied Economics
Pages: 469-479
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604396
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604396
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:469-479
Template-Type: ReDIF-Article 1.0
Author-Name: Preety Ramful
Author-X-Name-First: Preety
Author-X-Name-Last: Ramful
Author-Name: Xueyan Zhao
Author-X-Name-First: Xueyan
Author-X-Name-Last: Zhao
Title: Participation in marijuana, cocaine and heroin consumption in Australia: a multivariate probit approach
Abstract:
This article investigates factors affecting the participation in
marijuana, cocaine and heroin using micro-unit data from an Australian
national survey on recreational drugs. Accounting for cross-drug
correlation potentially induced by unobserved personal characteristics
such as individual tastes and addictive personalities, we estimate a
trivariate probit model, where the participation decisions are jointly
modelled as a system with correlated error terms. The estimated
correlation coefficients are significant across all three drugs. The study
provides valuable empirical information on conditional and joint
probabilities of drug participation. The multivariate approach is shown to
provide better analysis relative to a univariate approach that does not
address the endogeneity of all drug participation variables.
Journal: Applied Economics
Pages: 481-496
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701522853
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522853
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:481-496
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent
Author-X-Name-First: Robert
Author-X-Name-Last: Brent
Title: A cost-benefit analysis of a condom social marketing programme in Tanzania
Abstract:
This article uses the revealed preference, willingness-to-pay approach to
estimate the benefits in a cost-benefit analysis of a condom social
marketing (CSM) programme in Tanzania. The demand curve used to derive the
consumer surplus had unit elasticity and it was estimated from a
cross-sectional sample of 1272 persons. People were willing to pay
different prices for the condoms because perceived quality varied. Net
benefits were close to zero for the minimum estimate that ignored external
benefits. With external benefits included, the CSM programme was judged
socially worthwhile with our best estimate producing a benefit-cost ratio
ranging from 1.31 to 1.72.
Journal: Applied Economics
Pages: 497-509
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701522887
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522887
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:497-509
Template-Type: ReDIF-Article 1.0
Author-Name: Erkan Erdil
Author-X-Name-First: Erkan
Author-X-Name-Last: Erdil
Author-Name: I. Hakan Yetkiner
Author-X-Name-First: I. Hakan
Author-X-Name-Last: Yetkiner
Title: The Granger-causality between health care expenditure and output: a panel data approach
Abstract:
This study investigates the Granger-causality relationship between real
per capita GDP and real per capita health care expenditure by employing a
large macro panel data set with a VAR representation. The findings verify
that the dominant type of Granger-causality is bidirectional. In instances
that we found one-way causality, the pattern is not homogenous: Our
analyses show that one-way causality generally runs from income to health
in low- and middle-income countries whereas the reverse holds for
high-income countries. Accordingly, care must be paid in defining the
dependent and independent variables when specifying the determinants of
health care expenditure.
Journal: Applied Economics
Pages: 511-518
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019083
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019083
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:511-518
Template-Type: ReDIF-Article 1.0
Author-Name: Shin-Jong Lin
Author-X-Name-First: Shin-Jong
Author-X-Name-Last: Lin
Title: Economic fluctuations and health outcome: a panel analysis of Asia-Pacific countries
Abstract:
The purpose of this study is to assess the effects of economic
fluctuations on health outcome. By using data obtained from eight
Asia-Pacific countries over the period 1976 to 2003 and a fixed-effects
model to conduct the regression analysis, the results of this study
indicate that unemployment rate is negatively and significantly correlated
with total mortality and mortality rates from cardiovascular diseases,
motor vehicle accidents and infant mortality. These findings are
consistent with the view that health may improve during economic
downturns. In addition, suicide is found to move countercyclically with
economic fluctuations. Socioeconomic factors such as age and gender also
play important roles in affecting the mortality rates. The results also
show that unemployment has a stronger immediate and contemporaneous,
rather than a sustained, effect on mortality rates. Finally, this study
concludes that the effects of economic fluctuations on health outcome tend
to lead to erroneous conclusions if the fixed-effects problems are
neglected. The findings of this study shed some light on the link between
economic fluctuations and health outcome and provide further international
evidence on this issue.
Journal: Applied Economics
Pages: 519-530
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701720754
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720754
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:519-530
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Are health expenditures and GDP characterized by asymmetric behaviour? Evidence from 11 OECD countries
Abstract:
In this article, we examine whether per-capita health expenditures and
per-capita GDP for 11 OECD countries can be characterized by asymmetric
behaviour. We achieve this goal by using the nonparametric Triples test
suggested by Randles et al. (1980). We examine two forms of asymmetries,
namely deepness and steepness. Our main finding is that for 6 out of 11
countries, namely for the USA, the UK, Japan, Spain, Finland and Iceland,
either per-capita health expenditures or per-capita GDP are characterized
by asymmetric behaviour. This finding to some extent casts doubt on those
studies that model the relationship between health and GDP using unit-root
and cointegration tests that assume symmetric disturbances.
Journal: Applied Economics
Pages: 531-536
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701765304
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765304
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:531-536
Template-Type: ReDIF-Article 1.0
Author-Name: Richard McGregory
Author-X-Name-First: Richard
Author-X-Name-Last: McGregory
Author-Name: M. Scott Niederjohn
Author-X-Name-First: M.
Author-X-Name-Last: Scott Niederjohn
Author-Name: James Peoples
Author-X-Name-First: James
Author-X-Name-Last: Peoples
Title: Do part-time/full-time compensation differentials for nurses vary between the private and public sector?
Abstract:
This study examines whether, compared to their private sector
counterparts, public sector health care employers are at a disadvantage
using part-time (PT) nurses to lower labour costs. Findings reveal a lack
of a PT wage differential. Public and Private sector PT nurses are less
likely to receive health care and pension coverage compared with full-time
(FT) nurses. Yet, these PT/FT nonwage compensation coverage differentials
do not vary across sectors. The nonwage findings are interpreted as
suggesting that public sector health care employers are just as likely as
private sector health care employers to benefit from cost savings
associated with lower nonwage coverage for PT nurses.
Journal: Applied Economics
Pages: 537-546
Issue: 4
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701320241
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320241
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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:537-546
Template-Type: ReDIF-Article 1.0
Author-Name: Tjalling van der Goot
Author-X-Name-First: Tjalling
Author-X-Name-Last: van der Goot
Author-Name: Noud van Giersbergen
Author-X-Name-First: Noud
Author-X-Name-Last: van Giersbergen
Author-Name: Michiel Botman
Author-X-Name-First: Michiel
Author-X-Name-Last: Botman
Title: What determines the survival of internet IPOs?
Abstract:
This article examines whether the variables that are significant in
noninternet initial public offering (IPOs) play a similar role for
internet IPOs. To this end, we analyse the determinants of survival of
internet firms that have gone public at the NASDAQ stock exchange from
December 1996 through February 2001. Financial and nonfinancial data
published in the IPO prospectuses are examined. For our analysis, we use
the semiparametric Cox proportional hazard model and estimate the effect
of these variables on the trading (survival) time using the parametric
Log-logistic survival model. It appears that the average operating history
of internet IPOs is remarkably small compared to noninternet IPOs, namely
2.4 and 10 years, respectively. Furthermore, we find that the average
number of risk factors for internet IPOs is four times higher than the
number reported for noninternet IPOs. The results of the parametric
analysis correspond to the semiparametric results. Our findings hold under
a number of different model specifications and robustness checks. The
sensitivity analysis in the Log-logistic model reveals that the greatest
positive effect on the survival time comes from investor demand followed
by operational cash flow over liabilities. The expected survival time is
shortened mostly by IPO market level, followed by valuation uncertainty.
Journal: Applied Economics
Pages: 547-561
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007369
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007369
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Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Fajnzylber
Author-X-Name-First: Pablo
Author-X-Name-Last: Fajnzylber
Author-Name: Ana Fernandes
Author-X-Name-First: Ana
Author-X-Name-Last: Fernandes
Title: International economic activities and skilled labour demand: evidence from Brazil and China
Abstract:
Using two new firm-level datasets, this article investigates the impact
of three international economic activities - the use of imported inputs,
exports and foreign direct investment - on skilled labour demand in Brazil
and China. We find that Brazilian firms that engage in these activities
exhibit a higher skilled labour demand than firms that do not. In
contrast, Chinese firms that engage in these activities have a lower
skilled labour demand than firms that do not. Thus, international economic
activities act as a channel for skill-biased technology diffusion in
Brazil but have an effect of specialization according to comparative
advantage in unskilled labour-intensive goods in China.
Journal: Applied Economics
Pages: 563-577
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007336
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007336
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:563-577
Template-Type: ReDIF-Article 1.0
Author-Name: Fassil Fanta
Author-X-Name-First: Fassil
Author-X-Name-Last: Fanta
Author-Name: Mukti Upadhyay
Author-X-Name-First: Mukti
Author-X-Name-Last: Upadhyay
Title: Determinants of household supply of labour in food-for-work programme in Tigray, Ethiopia
Abstract:
We study the factors that determine the household supply of labour in
food-for-work (FFW) projects that seek to address food insecurity and help
capital formation in development. Based on data from a survey conducted in
2003 in Tigray, Ethiopia, our probit analysis identifies factors that
significantly affect the household decision to participate in FFW
programmes. We correct for selection bias, and estimate total and excess
supply of FFW labour. Our finding of substantial leakages in targeting
that allow relatively well-off households to obtain FFW employment yield
important implications for the prevailing FFW wage. We also argue that FFW
programmes will be more effective if they are designed to account for
geographic heterogeneity in such factors as male to female labour
participation differences and the incidence of debilitating diseases.
Journal: Applied Economics
Pages: 579-587
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007419
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007419
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:579-587
Template-Type: ReDIF-Article 1.0
Author-Name: Stephanie Brewer
Author-X-Name-First: Stephanie
Author-X-Name-Last: Brewer
Author-Name: Jason Kelley
Author-X-Name-First: Jason
Author-X-Name-Last: Kelley
Author-Name: James Jozefowicz
Author-X-Name-First: James
Author-X-Name-Last: Jozefowicz
Title: A blueprint for success in the US film industry
Abstract:
This article analyses motion picture box-office gross revenue using a
cross-section of films from 1997 to 2001. The dependent variable is total
domestic box-office revenue. The independent variables investigated
include: production budget; peak number of screens that the film was shown
on in theaters; Consumer price index for movie tickets; personal income;
season and year of the release in theaters; a measure of pre-existing
audience; aggregate critic rating; MPAA rating; genre; word-of-mouth
recommendation; the presence of popular stars and the award nominations. A
distinction is made in the analysis between information available to the
public prior to the release of the film in theaters (ex ante) and
information available to the public after the film opens in theaters (ex
post). Results for the ex ante ordinary least squares (OLS) regression
reveal positive impacts of budget, summer and holiday release dates,
critical reviews, sequels and several genres on gross revenue.
Significant, positive determinants in the ex post OLS regressions include
budget, the peak number of screens, sequels, critical reviews, summer and
holiday releases, word-of-mouth, award nominations and star power.
Journal: Applied Economics
Pages: 589-606
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007351
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007351
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:589-606
Template-Type: ReDIF-Article 1.0
Author-Name: Atrayee Ghosh Roy
Author-X-Name-First: Atrayee Ghosh
Author-X-Name-Last: Roy
Title: Evidence on economic growth and government size
Abstract:
The purpose of this article is to explore the effect of government size
on economic growth in the United States using time-series data over the
period 1950 to 1998. A multi-equation model is developed to examine the
relationship between economic growth and government size. The results
indicate that government size has a significant and negative effect on
economic growth.
Journal: Applied Economics
Pages: 607-614
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007393
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007393
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:607-614
Template-Type: ReDIF-Article 1.0
Author-Name: Andres Picazo-Tadeo
Author-X-Name-First: Andres
Author-X-Name-Last: Picazo-Tadeo
Author-Name: Francisco Saez-Fernandez
Author-X-Name-First: Francisco
Author-X-Name-Last: Saez-Fernandez
Author-Name: Francisco Gonzalez-Gomez
Author-X-Name-First: Francisco
Author-X-Name-Last: Gonzalez-Gomez
Title: The role of environmental factors in water utilities' technical efficiency. Empirical evidence from Spanish companies
Abstract:
This article computes input-specific scores of technical efficiency for a
sample of water utilities located in the southern Spanish region of
Andalusia. In addition, differences in efficiency between different
operating environments are investigated. Concerning the debate about
ownership and efficiency, we find that privately owned companies
outperform public utilities in their management of labour. Furthermore,
technical efficiency is found to be greater among firms located in highly
populated areas and for utilities providing water services to tourist
municipalities. Finally, no empirical evidence supporting the greater
technical efficiency of consortia of water utilities, a managerial
strategy strongly encouraged by regional politicians, is found.
Journal: Applied Economics
Pages: 615-628
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007310
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007310
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:615-628
Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Ter Wang
Author-X-Name-First: Yu-Ter
Author-X-Name-Last: Wang
Title: On the simultaneous elimination of export subsidies under oligopoly
Abstract:
This article extends the model of Brander and Spencer (1985) to study
whether the simultaneous elimination of export subsidies is feasible. It
is shown that the incentive for subsidizing exports to reoccur will exist
when all subsidizing countries are forced to withdraw their subsidies on
exports simultaneously.
Journal: Applied Economics
Pages: 629-631
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007328
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007328
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:629-631
Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Busch
Author-X-Name-First: Victoria
Author-X-Name-Last: Busch
Author-Name: Svenn-Åge Dahl
Author-X-Name-First: Svenn-Åge
Author-X-Name-Last: Dahl
Author-Name: Dennis Dittrich
Author-X-Name-First: Dennis
Author-X-Name-Last: Dittrich
Title: An empirical study of age discrimination in Norway and Germany
Abstract:
Using a questionnaire and a sample of students and personnel managers we
establish the existence of age discrimination in the hiring process in
Germany and Norway. As expected, age discrimination is more prominent in
Germany where the hiring probability of equally qualified applicants is
reduced by about 22 percentage points due to an age differential of 14
years as opposed to only 12 percentage points in Norway. Within both
countries the tendency to discriminate does not differ between students
and personnel managers and does not depend on the age of the decision
maker. 'The phenomenon of unemployment among older workers […] is
characterized less by the risk of becoming unemployed than by the problem
of remaining unemployed and failing to find new work.' Frerichs and
Naegele (1998, p. 59)
Journal: Applied Economics
Pages: 633-651
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007344
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007344
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:633-651
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Title: Endogeneity, computers, language skills and wages among university graduates in Vietnam
Abstract:
One would expect that returns to supplementary skills in developing
countries are considerably higher, compared to those documented for
developed countries (as is the case with returns to schooling). I derive
estimates of returns to the use of computer and foreign language skills in
Vietnam after controlling for endogeneity, using a binary instrument
hypothesized to reflect reconstruction (Doi Moi) policies in Vietnam. I
find that (a) the use of both computers and language skills is associated
with very large earnings premiums (b) IV return estimates are as high as
and sometimes higher than OLS estimates, however, they should be
interpreted in relation to the instrument used.
Journal: Applied Economics
Pages: 653-663
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007377
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007377
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:653-663
Template-Type: ReDIF-Article 1.0
Author-Name: Martina Lawless
Author-X-Name-First: Martina
Author-X-Name-Last: Lawless
Title: Firm export participation: entry, spillovers and tradability
Abstract:
This article analyses the choices made by individual firms to enter the
export market. A probit specification tests the probability of exporting
in the current period given past exporting experience, controlling for the
firm's initial export status. This article uses a two-step estimation
procedure suggested by Orme (1997, 2001), which controls for the influence
of initial conditions. Significant evidence of sunk costs was found, based
on the observed persistence of export activity and the explanatory power
of previous exporting experience on current export status. A measure of
sector tradability was also used and as expected firms in more easily
traded sectors were most likely to be exporters. However, little evidence
of spillovers was found in determining export market participation.
Journal: Applied Economics
Pages: 665-675
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007401
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007401
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:665-675
Template-Type: ReDIF-Article 1.0
Author-Name: Gianpaolo Rossini
Author-X-Name-First: Gianpaolo
Author-X-Name-Last: Rossini
Author-Name: Paolo Zanghieri
Author-X-Name-First: Paolo
Author-X-Name-Last: Zanghieri
Title: Current account composition and sustainability of external debt
Abstract:
If an economy runs a current account (CA) deficit and finances it via a
corresponding net inflow of equity capital the external debt (ED) does not
change, i.e. the CA deficit does not add to ED. This is no paradox. It
simply comes from the definition of CA deficit and ED, and points to
different degrees of sustainability of CA deficits according to the way
they are financed and to the composition of the CA itself. By the
evaluation of the determinants of interest rates spreads vis a vis US
lending rates we assess the sustainability of CA deficits. We find that
FDI net inflows (proxy of equity capital) allow emerging economies to
sustain larger CA imbalances with respect to CA deficits financed by
inflows of more liquid assets. Equity capital is a way to finance the CA.
It does not contribute to the ED and it affects the solvency assessment of
a country.
Journal: Applied Economics
Pages: 677-683
Issue: 5
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007427
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007427
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Handle: RePEc:taf:applec:v:41:y:2009:i:5:p:677-683
Template-Type: ReDIF-Article 1.0
Author-Name: D. Law
Author-X-Name-First: D.
Author-X-Name-Last: Law
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Title: Skewness as an explanation of gambling in cumulative prospect theory
Abstract:
Skewness of return has been suggested as a reason why agents might choose
to gamble, ceteris paribus, in cumulative prospect theory (CPT). We
investigate the relationship between moments of return in two models where
agents choices over uncertain outcomes are determined as in CPT. We
illustrate via examples that in CPT theory, as with expected utility
theory, propositions that agents have a preference for skewness may be
invalid.
Journal: Applied Economics
Pages: 685-689
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007476
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007476
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:685-689
Template-Type: ReDIF-Article 1.0
Author-Name: Bradley Ewing
Author-X-Name-First: Bradley
Author-X-Name-Last: Ewing
Author-Name: Jamie Kruse
Author-X-Name-First: Jamie
Author-X-Name-Last: Kruse
Author-Name: Mark Thompson
Author-X-Name-First: Mark
Author-X-Name-Last: Thompson
Title: Twister! Employment responses to the 3 May 1999 Oklahoma City tornado
Abstract:
This research examined the impact of the 3 May 1999 tornado on the
Oklahoma City labour market. We estimated time series models that allow
for time-varying variance in employment growth. The models include
intervention variables designed to capture the tornado's effect at initial
impact as well as over the post-tornado period. In terms of total
employment growth, the Oklahoma City Metropolitan Statistical Area (MSA)
experienced an increase in employment growth and a reduction in labour
market risk in the sample period following the tornado. The analysis also
examined the effect of the weather event on eight industrial sectors. Five
of eight sectors experienced significant decreases in labour market risk
after the tornado. Our evidence suggests that Oklahoma City and
surrounding communities that make up the Metropolitan Statistical Area
survived the disaster without suffering any extended adverse labour market
effects. Our results indicate that at least in the aggregate, the labour
market improved. “… what has so often excited wonder, the
great rapidity with which countries recover from a state of devastation;
the disappearance, in a short time, of all traces of the mischiefs done by
earthquakes, floods, hurricanes, and the ravages of war … all the
inhabitants are ruined, and yet in a few years after, everything is much
as it was before.” - J.S. Mill (1848)
Journal: Applied Economics
Pages: 691-702
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007468
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007468
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:691-702
Template-Type: ReDIF-Article 1.0
Author-Name: F. G. Mixon
Author-X-Name-First: F. G.
Author-X-Name-Last: Mixon
Author-Name: T. D. Pousson
Author-X-Name-First: T. D.
Author-X-Name-Last: Pousson
Author-Name: T. G. Green
Author-X-Name-First: T. G.
Author-X-Name-Last: Green
Title: Toddler economicus: childhood habit cessation in a Beckerian Model of pacifier use
Abstract:
As a test of elements of Gary Becker's model of habitual behaviours, the
present study examines another potential example of a habit - pacifier use
- within the youngest segment of the population, infants and toddlers. To
explore the facets of a child's pacifier habit, we make use of an
extensive questionnaire on the effectiveness of several proposed methods
for stopping a child's pacifier consumption. Results indicate that
children's pacifier use approaches the habit/addiction threshold, and it
is best alleviated with abrupt cessation, or 'cold turkey.' Interestingly,
our empirical finding that 'cold turkey' dominates or is superior to other
methods of getting children to stop relying on pacifier use (e.g. limiting
time of use, altering the pacifier's tip, etc.) has two implications.
First, it supports the Beckerian notion that a child's pacifier habit
approaches the habit/addiction threshold, as stated above. Second, it
contradicts suggestions from many in the health profession to seek methods
other than 'cold turkey' to stop a child's pacifier use.
Journal: Applied Economics
Pages: 703-713
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007484
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007484
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:703-713
Template-Type: ReDIF-Article 1.0
Author-Name: J. Frank
Author-X-Name-First: J.
Author-X-Name-Last: Frank
Author-Name: P. Garcia
Author-X-Name-First: P.
Author-X-Name-Last: Garcia
Title: Time-varying risk premium: further evidence in agricultural futures markets
Abstract:
Research has provided mixed results regarding the presence of a
time-varying risk premium in agricultural futures markets. In this article
we test for the presence of a time-varying risk premium focusing on the
properties of the underlying data. Our results show that accounting for
the structural break in the 1970s plays a key role in the findings. In
contrast to recent research, we find only limited evidence of time-varying
risk premium. For a two-month horizon the corn, soybean meal and hog
markets show no signs of a risk premium, while very weak support for a
time-varying premium emerges in live cattle. For the four-month horizon,
no evidence of a time-varying risk premium appears for any of the markets.
Journal: Applied Economics
Pages: 715-725
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019026
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:715-725
Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Bennett
Author-X-Name-First: Jessica
Author-X-Name-Last: Bennett
Author-Name: Seamus McGuinness
Author-X-Name-First: Seamus
Author-X-Name-Last: McGuinness
Title: Assessing the impact of skill shortages on the productivity performance of high-tech firms in Northern Ireland
Abstract:
This article utilizes data from three separate skill related surveys of
firms in the Northern Ireland IT, Electronic Engineering and Mechanical
Engineering industries in order to assess the extent to which the
performance of high-tech firms are being constrained as a result of
hard-to-fill and/or unfilled vacancies. Whist it was found that the
determinants of skill shortage varied somewhat depending upon the
definitional approach adopted, a high degree of correlation was found.
With regards to the impacts of skill shortages on firm level performance,
it was found that both hard-to-fill and unfilled vacancies had reduced
output per worker levels by between 65 and 75% in affected firms, however,
these impacts were only detecw after controlling for selection effects.
The evidence suggests that standard OLS procedures can generate highly
misleading results in studies of this nature.
Journal: Applied Economics
Pages: 727-737
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007450
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007450
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:727-737
Template-Type: ReDIF-Article 1.0
Author-Name: Nurhan Yenturk
Author-X-Name-First: Nurhan
Author-X-Name-Last: Yenturk
Author-Name: Burc Ulengin
Author-X-Name-First: Burc
Author-X-Name-Last: Ulengin
Author-Name: Ahmet Cimenoglu
Author-X-Name-First: Ahmet
Author-X-Name-Last: Cimenoglu
Title: An analysis of the interaction among savings, investments and growth in Turkey
Abstract:
Turkey has been implementing tight fiscal and monetary policies for
years. These policies rely on the basic understanding that savings trigger
growth and investments. However there are alternative theoretical
discussions and empirical findings related to the interaction among these
variables. In this study, while one of the purposes is to analyse the
interaction among these variables for the Turkish case, the other is to
try to bring an insight for other developing countries for the issues such
as data production, econometric analysis, and as well as making policy
suggestions in line with the evidence from the Turkish case. The findings
of this study show that, it is the growth that induces both savings and
investments. Hence, it is necessary to question policies that assume it is
the savings triggering growth and investments.
Journal: Applied Economics
Pages: 739-751
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019000
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019000
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:739-751
Template-Type: ReDIF-Article 1.0
Author-Name: M. Angeles Caraballo
Author-X-Name-First: M. Angeles
Author-X-Name-Last: Caraballo
Author-Name: Carlos Usabiaga
Author-X-Name-First: Carlos
Author-X-Name-Last: Usabiaga
Title: The relevance of supply shocks for inflation: the spanish case
Abstract:
The methodology applied in this article to the Spanish economy is based
on Ball and Mankiw (1995). These authors assume that a good proxy for
supply shocks is the third moment of the price changes distribution. The
main data used are the monthly consumer price indexes of each region,
disaggregated in 57 categories, for the 1993-2005 period. We estimate the
relation between mean inflation and the higher moments of the
distribution, including several control variables. Our results point out
that Spanish regions show a common pattern with regard to nominal
rigidities, and that Spanish inflation is vulnerable to supply shocks.
Journal: Applied Economics
Pages: 753-764
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007443
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007443
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:753-764
Template-Type: ReDIF-Article 1.0
Author-Name: Erik de Regt
Author-X-Name-First: Erik
Author-X-Name-Last: de Regt
Title: Hourly wages and working time in the Dutch market sector 1962-1995
Abstract:
This article analyses the joint behaviour of hourly wages and standard
hours in the Netherlands. With respect to the development of full-time
hours to different hypotheses are suggested: work-sharing or
productivity-sharing. Under the work-sharing hypothesis, high unemployment
would lead to reduced hours, whereas under productivity-sharing, increased
productivity leads to higher wages or reduced hours. The evidence is in
favour of the productivity hypothesis. There is no direct impact of
unemployment on the evolution of hours. Moreover, although reduced hours
tend to increase hourly wages in the short run, this is not the case in
the long run.
Journal: Applied Economics
Pages: 765-778
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019018
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:765-778
Template-Type: ReDIF-Article 1.0
Author-Name: Hector Sala
Author-X-Name-First: Hector
Author-X-Name-Last: Sala
Title: Institutions, capital stock and wage setting in Spain
Abstract:
This article confronts two distinct perspectives of the labour market:
the institutionalist view - highlighting equilibrium and labour market
institutions - and the Chain Reaction Theory - emphasizing dynamics and
the growth drivers' role in labour market performance. We consider the
ratio of public to private capital stock as a growth driver relevant to
the labour market; provide different economic rationales for this ratio to
exert a negative influence in wage setting; and explore its empirical
relevance in the context of a wage setting curve for Spain comprising the
standard variables. There are two main results. First, several
institutional variables taken to be critical to explain unemployment in
the mainstream literature are not relevant for the Spanish wage setting
curve. Second, there is a negative and significant influence of the ratio
of public to private capital stock, which is robust to different
specifications of the wage setting equation.
Journal: Applied Economics
Pages: 779-789
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007435
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007435
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:779-789
Template-Type: ReDIF-Article 1.0
Author-Name: Maury Granger
Author-X-Name-First: Maury
Author-X-Name-Last: Granger
Author-Name: Gregory Price
Author-X-Name-First: Gregory
Author-X-Name-Last: Price
Title: Does religion constrain the risky sex behaviour associated with HIV/AIDS?
Abstract:
This article examines the likely effectiveness of public health
interventions designed to change the risky sexual behaviour associated
with Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome
(HIV/AIDS) by Faith-Based Organizations (FBOs). We utilize data from the
General Social Survey (GSS) to estimate an economic model of sexual
behaviour. Our theoretical approach proceeds by rationalizing, on
evolutionary grounds, the existence of sexual activity in individual
preference functions, with unobservable costs imposed by religious beliefs
and participation. Given the objective of utility maximization, we justify
the existence of demand functions for sexual activity that generate
empirically testable hypotheses about the effects of religion and
religious participation on risky sexual activity. Our results suggest
that, at least in the case of heterosexuals, FBOs can indeed influence the
risky sexual behaviour that is associated with the transmission of
HIV/AIDS.
Journal: Applied Economics
Pages: 791-802
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/09603100601007495
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100601007495
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:791-802
Template-Type: ReDIF-Article 1.0
Author-Name: Nektarios Aslanidis
Author-X-Name-First: Nektarios
Author-X-Name-Last: Aslanidis
Author-Name: Susana Iranzo
Author-X-Name-First: Susana
Author-X-Name-Last: Iranzo
Title: Environment and development: is there a Kuznets curve for CO2 emissions?
Abstract:
This article re-examines the relationship between growth in per capita
income and environmental degradation using econometric techniques
appropriate for smooth transition regressions with panel data. This is a
more intuitive and flexible methodology than the polynomial models widely
used in the literature, and it can reconcile some of the mixed results
found previously. The methodology is applied to carbon dioxide emissions
from nonOECD countries over the period 1971 to 1997. Although there is no
evidence of environmental Kuznets curve, we find two regimes, namely a
low-income regime where emissions accelerate with economic growth and a
middle to high-income regime associated with a deceleration in
environmental degradation.
Journal: Applied Economics
Pages: 803-810
Issue: 6
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601018994
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601018994
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Handle: RePEc:taf:applec:v:41:y:2009:i:6:p:803-810
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of fiscal policy: introduction and overview
Abstract:
We introduce and summarize the results of 10 empirical studies that make
up this special issue on fiscal policy, covering a wide range of developed
and developing countries.
Journal: Applied Economics
Pages: 811-813
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840902840393
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902840393
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:811-813
Template-Type: ReDIF-Article 1.0
Author-Name: James Foreman-Peck
Author-X-Name-First: James
Author-X-Name-Last: Foreman-Peck
Author-Name: Laurian Lungu
Author-X-Name-First: Laurian
Author-X-Name-Last: Lungu
Title: Fiscal devolution and dependency
Abstract:
Public spending devolution in practice is widely seen as more appropriate
for addressing varied political aspirations within state boundaries than
is tax devolution. A drawback is that devolved public spending may be
subject to irresistible upward pressure, as illustrated by 'formula drift'
of the United Kingdom devolved administrations. By crowding out the
private sector such public spending can exacerbate the problem it was
originally intended to alleviate. When taxpayers do not value increases in
government output at least as highly as the private goods and services
they must forgo to finance them, then the public sector is too large. This
article estimates a three sector Hecksher-Ohlin model of the economy with
the greatest relative rise of the public spending ratio in the United
Kingdom, Wales. Simulation of the model shows a net gain in employment
from a 1% cut in income tax matched by a corresponding reduction in
government spending. This result is consistent with the current level of
intergovernmental transfers being excessive.
Journal: Applied Economics
Pages: 815-828
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019182
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019182
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:815-828
Template-Type: ReDIF-Article 1.0
Author-Name: H. Badinger
Author-X-Name-First: H.
Author-X-Name-Last: Badinger
Title: Fiscal rules, discretionary fiscal policy and macroeconomic stability: an empirical assessment for OECD countries
Abstract:
Does aggressive use of discretionary fiscal policy induce macroeconomic
instability in terms of higher output and inflation volatility? Three main
conclusions arise from our cross section and panel analysis for a sample
of 20 OECD countries: first, discretionary fiscal policy has a significant
and sizeable effect on volatility of GDP (per capita) and all of its
components. Second, there is no direct effect on inflation volatility;
since output volatility is an important determinant of inflation
volatility, discretionary fiscal policy indirectly exacerbates inflation
volatility. These results turn out robust with respect to alternative
fiscal policy measures and endogeneity concerns. Finally, many of the
fiscal rules introduced since 1990 appear to have reduced the use of
discretionary fiscal policy.
Journal: Applied Economics
Pages: 829-847
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367556
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367556
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:829-847
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Rui Henrique Alves
Author-X-Name-First: Rui Henrique
Author-X-Name-Last: Alves
Title: Endogenous growth and European fiscal rules
Abstract:
We develop a general equilibrium endogenous growth model of a monetary
union between two countries that differ in economic dimension and level of
development. By solving transitional dynamics towards the steady state, we
examine the impact of fiscal shocks that may lead to excessive deficits.
Results suggest that the individual and the whole impact of such deficits
depend on which country they occur. In such context, we argue that the
small and less developed country should be allowed to temporarily run an
excessive deficit, in order to improve economic convergence within the
union.
Journal: Applied Economics
Pages: 849-858
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604503
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604503
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:849-858
Template-Type: ReDIF-Article 1.0
Author-Name: Lusine Lusinyan
Author-X-Name-First: Lusine
Author-X-Name-Last: Lusinyan
Author-Name: John Thornton
Author-X-Name-First: John
Author-X-Name-Last: Thornton
Title: The sustainability of South African fiscal policy: an historical perspective
Abstract:
This article examines the issue of long-run fiscal sustainability in
South Africa by applying a battery of recently developed unit root and
cointegration tests to real revenue and spending data for the period 1895
to 2005. The results provide evidence that, allowing for structural
breaks, South African revenue and spending during this period were I(1)
series and cointegrated, with the estimated long-run equilibrium relation
supporting the presence of a weak deficit sustainability condition.
Journal: Applied Economics
Pages: 859-868
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604537
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604537
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:859-868
Template-Type: ReDIF-Article 1.0
Author-Name: Agustin Garcia
Author-X-Name-First: Agustin
Author-X-Name-Last: Garcia
Author-Name: M. J. Arroyo
Author-X-Name-First: M. J.
Author-X-Name-Last: Arroyo
Author-Name: R. Minguez
Author-X-Name-First: R.
Author-X-Name-Last: Minguez
Author-Name: J. Uxo
Author-X-Name-First: J.
Author-X-Name-Last: Uxo
Title: Estimation of a fiscal policy rule for EMU countries (1984-2005)
Abstract:
The primary objective of this article is to estimate a fiscal policy rule
for each of the EMU member States from 1984 to 2005 in order to know if
there has been a systematic response of the cyclically adjusted primary
balance to output gap and debt level variations. Also, we aim to discover
whether the change in the fiscal framework, which took place after 1992
has had a substantial impact on the fiscal policy applied. The principal
novelty is that the estimation is performed simultaneously by means of a
seemingly unrelated regression estimator model. We are thus able to obtain
different coefficients for each country, while developing possible
correlations between national fiscal policies, which would reveal the
existence of common factors. The results provide clear evidence of a
structural break in the rule after the introduction of the new fiscal
regulations and, as the hypothesis of equality in the national
coefficients of the rule is clearly rejected, reveal a need to consider
specific national factors.
Journal: Applied Economics
Pages: 869-884
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701720739
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720739
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Template-Type: ReDIF-Article 1.0
Author-Name: Helder Ferreira de Mendonca
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonca
Author-Name: Rubens Teixeira da Silva
Author-X-Name-First: Rubens Teixeira
Author-X-Name-Last: da Silva
Title: Fiscal effect from inflation targeting: the Brazilian experience
Abstract:
This article evaluates the presence of possible unpleasant effects on the
fiscal side due to a disinflation process initiated with the adoption of
inflation targeting in Brazil. The analysis for this country deserves
attention because, credibility is still being built and Brazil represents
a potential laboratory experiment in which the effects of an adoption of
inflation targeting, after more than half a decade, can be studied. Under
this perspective, an empirical analysis based on OLS, GMM and VAR methods
is made. The findings denote that the development of credibility is a
powerful instrument for eliminating the unpleasant effects from a tight
monetary policy (necessity of increasing primary surplus) on public debt.
Journal: Applied Economics
Pages: 885-897
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701721398
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721398
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:885-897
Template-Type: ReDIF-Article 1.0
Author-Name: C. Colombier
Author-X-Name-First: C.
Author-X-Name-Last: Colombier
Title: Growth effects of fiscal policies: an application of robust modified M-estimator
Abstract:
In the field of economics only nonhigh-quality data is usually available,
which can cause the widely used least square estimators (LSE) to be biased
and inefficient. Therefore, the present study introduces the robust
modified M-estimator (MME) proposed by Yohai et al. (1991). In the case of
growth regressions with fiscal variables it can be shown that LSE is
biased and inefficient, whereas MME is not. The robust regressions
ascertain a stable positive growth effect of public infrastructure and
education. Moreover, this study shows that government size has not been
detrimental to growth for OECD countries in the past. No growth effects of
taxation have been found so that endogenous growth theory is not
corroborated in this regard. Consequently, fiscal policies aiming at
promoting growth should focus on infrastructure and education.
Journal: Applied Economics
Pages: 899-912
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701736099
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736099
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:899-912
Template-Type: ReDIF-Article 1.0
Author-Name: James Ang
Author-X-Name-First: James
Author-X-Name-Last: Ang
Title: Do public investment and FDI crowd in or crowd out private domestic investment in Malaysia?
Abstract:
Motivated by the concern of a persistent decline in total investment in
Malaysia during the post-crisis era, this article examines the long-run
relationship between private domestic investment (PDI), public investment
and foreign direct investment (FDI) in Malaysia. Using multivariate
cointegration techniques, the results indicate a fairly robust
cointegrated relationship between these variables during the period 1960
to 2003. Both public investment and FDI are found to be complementary to,
rather than competing with, PDI.
Journal: Applied Economics
Pages: 913-919
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701721448
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721448
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:913-919
Template-Type: ReDIF-Article 1.0
Author-Name: Noriko Ishikawa
Author-X-Name-First: Noriko
Author-X-Name-Last: Ishikawa
Author-Name: Mototsugu Fukushige
Author-X-Name-First: Mototsugu
Author-X-Name-Last: Fukushige
Title: Impacts of tourism and fiscal expenditure on remote islands in Japan: a panel data analysis
Abstract:
Japan consists of many small inhabited islands in addition to four main
islands. We examine the impact of fiscal expenditure and the number of
tourists on per capita taxable income in remote islands using panel data
analyses. The results show that both fiscal expenditure and population
size have significant positive impacts on per capita taxable income,
whereas the number of tourists does not have statistically significant
impact. They indicate that tourism development would not work as a
substitute for financial support from the government. In other words,
continuous financial support may be needed to maintain the islands'
economies.
Journal: Applied Economics
Pages: 921-928
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840801964484
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964484
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:921-928
Template-Type: ReDIF-Article 1.0
Author-Name: Marta Gomez-Puig
Author-X-Name-First: Marta
Author-X-Name-Last: Gomez-Puig
Title: The immediate effect of monetary union on EU-15 sovereign debt yield spreads
Abstract:
Yield spreads (corrected for exchange rate risk) over 10-year German
securities of European Union (EU) countries that did not join Economic and
Monetary Union (EMU) experienced an average decrease of 14.20 basis points
during the first 3 years after the beginning of Currency Union.
Conversely, Euro-area countries' adjusted spreads registered an average
rise of 11.98 basis points in the same period. This article examines the
elements (a possible change in the relative importance of domestic or
international risk factors) behind these results using both panel
estimations in the two groups of countries and a country-by-country
specification in each of them.
Journal: Applied Economics
Pages: 929-939
Issue: 7
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802345584
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802345584
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:929-939
Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chun Chang
Author-X-Name-First: Shu-Chun
Author-X-Name-Last: Chang
Title: Productivity and territorial specialization
Abstract:
On the basis of a relatively free trade world and global economy,
specialization tends to increase the comparative advantages of a country.
But in this scenario, not countries but cities are the territorial
organizations that play the main role. Cities concentrate the economic
activity and political influential household that reflects economic
changes.The purpose of this study is to explore the principles underlie
the distribution of population on a territory and the likely effect of
economic development on redistributing population geographically.
Journal: Applied Economics
Pages: 941-945
Issue: 8
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019091
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019091
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Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:941-945
Template-Type: ReDIF-Article 1.0
Author-Name: Syoum Negassi
Author-X-Name-First: Syoum
Author-X-Name-Last: Negassi
Title: International R&D spillovers and economic performance of firms: an empirical study using random coefficient models
Abstract:
The existence of R&D spillovers or externalities i.e. the effects of
firms' research activities on other firms activities was theoretically
established by Arrow 1962, but few empirical studies have addressed their
effects on firms' economic performance (i.e. value-added) and
technological performance (innovation output). In an open economy, firms'
economic and technological performances depend on the position of these
firms in their national and international technological environments. The
main focus of this article is identifying the different channels through,
which spillover occurs, specially the international technology spillovers
(i.e. R&D activities of foreign firms; foreign technology payments;
international intermediate inputs; and international R&D cooperation) and
the mobility of engineers and scientists between firms. Our statistical
and econometric analysis determines that spillovers drive the production
of individual firms together and link it to the incidence of innovations.
Thus, using a pooling method based on segmentation of bunched (or grouped)
individuals rather than those of usual individuals panel models and
proposing an efficient new full information method (3SLS),1 this empirical
study shows that international spillovers are rather large compared to
national spillovers. They account for a substantial fraction of the
variation in firm production and innovation output in the French economy.
The mobility of engineers and scientists help a firm to acquire knowledge
externally so as to innovate and increase its production. The effects of
technological policy tools used by the French government on the innovation
and production are rather very high and incite firms to increase their R&D
efforts. This study also demonstrates the existence of a potential
simultaneity in the decision to impliment R&D and the spillover pools. The
estimated coefficients obtained for the classical variables (capital and
employment) are comparable to those obtained in the literature.
Journal: Applied Economics
Pages: 947-976
Issue: 8
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019034
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019034
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Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:947-976
Template-Type: ReDIF-Article 1.0
Author-Name: Voxi Heinrich Amavilah
Author-X-Name-First: Voxi Heinrich
Author-X-Name-Last: Amavilah
Title: Knowledge of African countries: production and value of doctoral dissertations
Abstract:
The notion that lack of knowledge undermines the economic performance of
African countries is deeply and widely held to be true. Yet quantitative
evidence for the basis of that truth is few and far in-between. This
article first describes a conventional production function approach to the
creation of knowledge of African countries in terms of a relative and
indirect measure of the quantity of dissertations (D). Second, it assesses
the imputed values of knowledge. In the first instance it finds that
relative income (Y), population (N), openness (Z), and technical factors
(A) are central to the production of knowledge of African countries. In
the second instance, the imputed values of knowledge are positive, but of
modest magnitude. The results recommend more investment in the production
of knowledge of African countries, improved openness, and especially
reduced opportunity cost of knowledge creation which now differs widely
across countries, and averages 10.7%. For further research the results
suggest that dissertations may be useful proxies for human capital in
economic growth regressions.
Journal: Applied Economics
Pages: 977-989
Issue: 8
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019117
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019117
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Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:977-989
Template-Type: ReDIF-Article 1.0
Author-Name: Miao Wang
Author-X-Name-First: Miao
Author-X-Name-Last: Wang
Title: Manufacturing FDI and economic growth: evidence from Asian economies
Abstract:
Previous empirical studies on inward foreign direct investment (FDI) and
economic growth generate mixed results. This article suggests that the
ambiguous results might be caused by the use of total FDI. We study the
heterogeneous effects of different sector-level FDI inflows on host
country's economic growth. Data from 12 Asian economies over the period of
1987 to 1997 are employed. Strong evidence shows that FDI in manufacturing
sector has a significant and positive effect on economic growth in the
host economies. FDI inflows in nonmanufacturing sectors do not play a
significant role in enhancing economic growth. Furthermore, without the
decomposition of total FDI inflows, the effect of manufacturing FDI on
host country's economic growth is understated by at least 48%.
Journal: Applied Economics
Pages: 991-1002
Issue: 8
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019059
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019059
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Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:991-1002
Template-Type: ReDIF-Article 1.0
Author-Name: Akhter Faroque
Author-X-Name-First: Akhter
Author-X-Name-Last: Faroque
Author-Name: Ryan Minor
Author-X-Name-First: Ryan
Author-X-Name-Last: Minor
Title: Inflation regimes and the stability of the pass-through of wages to consumer prices in Canada
Abstract:
This article has formally identified distinct historical inflation
regimes in Canada since 1961 in order to facilitate an investigation of
the impact of regime changes on the wage-price dynamics in the economy.
Both in and out-of-sample evidence suggest that wage growth exerts an
influence on inflation only during a high-inflation regime but inflation
exerts a more systematic and quantitatively stronger influence on wage
growth regardless of the prevailing inflation regime. Overall, the results
do not support either the 'cost-push' view of inflation or the 'new view'
that claims that increased globalization during the 1990s has reduced the
feedback from wage growth to inflation by weakening the bargaining power
of workers.
Journal: Applied Economics
Pages: 1003-1017
Issue: 8
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019133
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019133
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Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:1003-1017
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Jones
Author-X-Name-First: Richard
Author-X-Name-Last: Jones
Author-Name: Peter Sloane
Author-X-Name-First: Peter
Author-X-Name-Last: Sloane
Title: Regional differences in job satisfaction
Abstract:
Job satisfaction is significantly higher in Wales than in London and the
South East, the rest of England and Scotland. This is despite the fact
that among these four regions, earnings are lowest in Wales. Using data
from the British Household Panel Survey (BHPS), we investigate the
determinants of job satisfaction and attempt to explain why workers in
Wales are happier in their work than workers in other parts of the UK. We
find that workers in Wales appear to be less concerned about pay than
workers in other regions. We suggest that because lower earnings tend to
be associated with higher levels of unemployment and inactivity, being in
work may be regarded more favourably in more economically depressed
regions. We also suggest the climate of industrial relations, as perceived
by workers, is better in Wales than elsewhere.
Journal: Applied Economics
Pages: 1019-1041
Issue: 8
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019067
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019067
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Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:1019-1041
Template-Type: ReDIF-Article 1.0
Author-Name: Yonghyup Oh
Author-X-Name-First: Yonghyup
Author-X-Name-Last: Oh
Title: International capital market imperfections: evidence from geographical features of international consumption risk sharing
Abstract:
This article attempts to rationalize the validity of gravity variables to
explain the degree of international consumption risk sharing. We find that
for a panel of 54 countries during 1950-2000, variables such as distance,
affluence, a common language and the type of legal system are relevant in
explaining not only cross-country consumption and output correlations, but
consumption risk sharing. Common law countries share consumption risks
more than civil law countries. English speaking countries turn out to
share consumption risks more than other language groups, and show
significantly higher consumption risk sharing even within the group of
common law countries.
Journal: Applied Economics
Pages: 1043-1053
Issue: 8
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019042
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Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:1043-1053
Template-Type: ReDIF-Article 1.0
Author-Name: Dar-Hsin Chen
Author-X-Name-First: Dar-Hsin
Author-X-Name-Last: Chen
Author-Name: Chun-Da Chen
Author-X-Name-First: Chun-Da
Author-X-Name-Last: Chen
Author-Name: Jianguo Chen
Author-X-Name-First: Jianguo
Author-X-Name-Last: Chen
Title: Downside risk measures and equity returns in the NYSE
Abstract:
Although investors are concerned foremost with mean and variance, they
are also sensitive to downside risk. In this article we employ several
risk variables of traditional and downside risk measures to evaluate the
equity returns in the New York Stock Exchange (NYSE) market in order to
test their explaining power. The test results show that variance (or SD)
is better than beta in the performance. However, those traditional risk
measures have almost less explanatory power than total downside risk
measures, whether the downside risk measures are relative to zero, the
mean return or the market index return when they are used to predict the
future risk premium. The results also show that the significance of the
downside risk measures in the NYSE market is different between different
industry sectors, different periods of time and in different individual
equities.
Journal: Applied Economics
Pages: 1055-1070
Issue: 8
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019075
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019075
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Handle: RePEc:taf:applec:v:41:y:2009:i:8:p:1055-1070
Template-Type: ReDIF-Article 1.0
Author-Name: J. T. Addison
Author-X-Name-First: J. T.
Author-X-Name-Last: Addison
Author-Name: C. J. Surfield
Author-X-Name-First: C. J.
Author-X-Name-Last: Surfield
Title: Does atypical work help the jobless? Evidence from a CAEAS/CPS cohort analysis
Abstract:
Atypical employment, such as temporary, on-call and contract work, has
been found disproportionately to attract the jobless. But there is no
consensus in the literature as to the labour market consequences of such
job choice by unemployed individuals. Using data from the Current
Population Survey, we investigate the implications of the initial
job-finding strategies pursued by the jobless for their short- and
medium-term employment stability. At first sight, it appears that taking
an offer of regular employment provides the greatest degree of employment
continuity for the jobless. However, closer inspection indicates that the
jobless who take up atypical employment are not only more likely to be
employed 1 month and 1 year later than those who continue to search, but
also to enjoy employment continuity that is not less favourable than that
offered by regular, open-ended employment.
Journal: Applied Economics
Pages: 1077-1087
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019232
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019232
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1077-1087
Template-Type: ReDIF-Article 1.0
Author-Name: L. la Cour
Author-X-Name-First: L.
Author-X-Name-Last: la Cour
Author-Name: A. Milhøj
Author-X-Name-First: A.
Author-X-Name-Last: Milhøj
Title: The sale of alcohol in Denmark - recent developments and dependencies on prices/taxes
Abstract:
How do prices affect the choice of types of alcohol in Denmark? We study
the Danish sale of alcoholic beverages in a time series framework. First,
we look at annual data from 1980 investigating the hypothesis of a fairly
stable level of sales. We conclude stationarity of sales and we also find
that the income elasticity of total sales has been zero. Second, we
analyse the composition of the alcohol sale between beer, wine and spirits
in a multivariate model conditional on the development in prices. For this
analysis we use Johansen cointegration techniques. Again we test that
income can be omitted from the model and we use the model to derive the
effects on the composition of alcohol sales of three different sets of
changes in the alcohol taxation.
Journal: Applied Economics
Pages: 1089-1103
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019174
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019174
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1089-1103
Template-Type: ReDIF-Article 1.0
Author-Name: Yucan Liu
Author-X-Name-First: Yucan
Author-X-Name-Last: Liu
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: Testing expected utility maximization under price and quantity risk with a heterogeneous panel
Abstract:
Refutable implications based on the curvature properties of the indirect
utility function for the competitive firm operating under uncertainty are
extended to the case of both price and quantity uncertainty. Using unit
roots and cointegration tests for heterogeneous panels, a model of US
agricultural production is developed based on the time-series properties
of a panel of state-level data. Most refutable hypotheses under output
price and output quantity risk are not rejected, but symmetry conditions
implied by a twice-continuously-differentiable indirect utility function
are rejected. The same test conclusions are obtained from a traditional
model that presumes stationarity in all variables.
Journal: Applied Economics
Pages: 1105-1119
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019166
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019166
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1105-1119
Template-Type: ReDIF-Article 1.0
Author-Name: A. Hatemi-J
Author-X-Name-First: A.
Author-X-Name-Last: Hatemi-J
Author-Name: R. S. Hacker
Author-X-Name-First: R.
Author-X-Name-Last: S. Hacker
Title: Can the LR test be helpful in choosing the optimal lag order in the VAR model when information criteria suggest different lag orders?
Abstract:
The objective of this simulation study is to investigate whether the
likelihood ratio (LR) test can pick the optimal lag order in the vector
autoregressive model when the most applied information criteria (i.e.
vector Schwarz-Bayesian, SBC and vector Hannan-Quinn, HQC) suggest two
different lag orders. This lag-choosing procedure has been suggested by
Hatemi-J (1999). The results based on the Monte Carlo simulations show
that combining the LR test with SBC and HQC causes a substantial increase
in the success rate of choosing the optimal lag order compared to cases
when only SBC or HQC are used. This appears to be the case irrespective of
homoscedasticity or conditional heteroscedasticity properties of the
error-term in small sample sizes. This improvement in choosing the right
lag order also tends to improve the forecasting capability of the
underlying model.
Journal: Applied Economics
Pages: 1121-1125
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019273
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019273
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1121-1125
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Roberts
Author-X-Name-First: Barbara
Author-X-Name-Last: Roberts
Author-Name: Steve Thompson
Author-X-Name-First: Steve
Author-X-Name-Last: Thompson
Title: Firm turnover, restructuring and labour productivity in transition: the case of Poland
Abstract:
This article explores the impact of turnover and restructuring on labour
productivity in the Polish economy over the period 1988 to 1993. Changes
in aggregate productivity are decomposed into elements corresponding to
productivity growth among survivors, market share growth by survivors and
the contributions of entering and exiting firms. The traditional entry and
exit effects begin to work as transition to a market economy progresses.
However, initial productivity improvements are due to changes in market
shares of the existing firms following the break-up of large enterprises.
Regression analysis shows that changes in the firm-level productivity are
affected by restructuring and a more competitive economic environment.
Journal: Applied Economics
Pages: 1127-1136
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019208
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019208
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1127-1136
Template-Type: ReDIF-Article 1.0
Author-Name: Ajit Karnik
Author-X-Name-First: Ajit
Author-X-Name-Last: Karnik
Author-Name: Cedwyn Fernandes
Author-X-Name-First: Cedwyn
Author-X-Name-Last: Fernandes
Title: Natural resource dependence: a macroeconometric model for the United Arab Emirates
Abstract:
This study constructs a macroeconometric model to analyse the problems of
regions that exhibit dependence on nonrenewable resources (e.g. oil). The
role of the oil sector in the UAE and the extent to which it subsidizes
the rest of the economy is evaluated. The macroeconometric model
constructed consists of four sectors, has 25 equations and is evaluated
and calibrated employing dynamic simulation techniques. Counter-factual
and policy experiments are carried out and the instruments-targets
approach is used to analyse the impact of the oil sector. The article
highlights the continued dependence of the UAE economy on oil and the
urgency to diversify the economy and securing more nonhydrocarbon sources
of revenue.
Journal: Applied Economics
Pages: 1157-1174
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019109
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019109
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1157-1174
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin O'Brien
Author-X-Name-First: Kevin
Author-X-Name-Last: O'Brien
Title: Union wage, nonwage and political effects on protective service budgets
Abstract:
Previous studies have shown that public employee unions can affect the
budgets for their municipal services. I determine the specific sources of
these increased budgets for municipal services: increased wages, nonwage
bargaining issues, or political activity. Using data from national,
cross-sectional samples for police and fire departments, I show that
increased union wages do not affect the size of police and fire budgets
size whereas nonwage bargaining outcomes and union political activity do
affect police and fire budgets. Thus, nonwage contract issues should be
recognized as another important vehicle for public employee unions to
affect the budgets for their services.
Journal: Applied Economics
Pages: 1175-1182
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019257
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019257
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1175-1182
Template-Type: ReDIF-Article 1.0
Author-Name: Don Webber
Author-X-Name-First: Don
Author-X-Name-Last: Webber
Author-Name: Andrew Mearman
Author-X-Name-First: Andrew
Author-X-Name-Last: Mearman
Title: Student participation in sporting activities
Abstract:
Given that many universities spend large sum of money supplying sports
facilities for student use, comparatively little is known about the
factors that influence the quantity of student sporting participation.
This article presents evidence which suggests that the quantity of student
sports participation is negatively related to the number of hours they
work, while augmenting social capital and sports literacy are found to
enhance their sports participation. Universities need to target their
investment in sporting facilities to meet students' demands and not simply
to increase the range of sports facilities available to students.
Journal: Applied Economics
Pages: 1183-1190
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019216
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019216
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1183-1190
Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Lin Lin
Author-X-Name-First: Hui-Lin
Author-X-Name-Last: Lin
Author-Name: Ryh-song Yeh
Author-X-Name-First: Ryh-song
Author-X-Name-Last: Yeh
Author-Name: Ching-Fan Chung
Author-X-Name-First: Ching-Fan
Author-X-Name-Last: Chung
Title: The effect of outward investment to China on domestic R&D: a two-hurdle model with endogenous ODI
Abstract:
Outward direct investment (ODI) and domestic R&D are interrelated, but
empirical evidence is affected by the nature of a firm's data, which are
heavily censored. Firm data contain a firm's yes/no decision to invest in
China, yes/no decision of R&D, and the decision of R&D intensity. We thus
adopt a two-hurdle model and allow the China investment decision to be
endogenous in an R&D model in order to examine the effect of ODI in China
on domestic R&D investment in Taiwan's electronics industry. In the model,
a two-equation simultaneous subsystem is formed, in which three regression
equations are specified: a decision of R&D intensity, and a yes/no
decision of location to conduct R&D together with a yes/no decision to
invest in China Our results indicate that China investment and R&D
intensity are positively related such that ODI in China helps to raise
significantly a firm's R&D intensity as compared to the estimate if the
endogeneity of China investment and the nature of data were not properly
accounted.
Journal: Applied Economics
Pages: 1191-1198
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019224
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019224
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1191-1198
Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Mien Lin
Author-X-Name-First: Yi-Mien
Author-X-Name-Last: Lin
Author-Name: Yun-Sheng Hsu
Author-X-Name-First: Yun-Sheng
Author-X-Name-Last: Hsu
Author-Name: Shieh-Liang Chen
Author-X-Name-First: Shieh-Liang
Author-X-Name-Last: Chen
Title: Cash-flow news, market liquidity and liquidity risk
Abstract:
This article adopts Campbell's (1991) return decomposition model to
decompose the unexpected stock return and unexpected excess stock return
in the US stock market. The study also investigates the factors that cause
the shock to stock return and excess stock return. We further examine the
responses of stock market to cash-flow news, expected stock return news,
expected excess stock return news and interest rate news. Last, we examine
the reaction of market liquidity, liquidity risk and abnormal trading
volume to cash-flow news, expected stock return news, expected excess
stock return news and interest rate news. Our main findings are summarized
as follows: first, cash-flow news is the main driver of stock return and
excess stock return in stock market. Second, the dividend payout ratio is
able to predict stock return and excess stock return. Third, under the
model of stock return variance, unexpected market liquidity and unexpected
liquidity risk are negatively related to expected stock return news, but
not related to cash-flow news. Fourth, under the model of excess stock
return variance, unexpected market liquidity and unexpected liquidity risk
are negatively related to cash-flow news, expected excess stock return
news, and interest rate news.
Journal: Applied Economics
Pages: 1137-1156
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019158
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019158
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1137-1156
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev Goel
Author-X-Name-First: Rajeev
Author-X-Name-Last: Goel
Title: Cigarette prices and illicit drug use: is there a connection?
Abstract:
Using cross-sectional data from the United States, this study examines
the effects of cigarette prices on the use of marijuana and illicit drugs
(including marijuana, cocaine, heroin, inhalants, hallucinogens or any
prescription drugs for nonmedical use). Five primary contributions of this
work are: First, it provides evidence on the cross-relation between
cigarettes and marijuana and illicit drugs. Second, besides the 'standard'
control variables used in demand studies (namely, price, education and
income), we also control for the influence of employment status and health
insurance coverage. Third, this research provides new evidence on the
price elasticity of cigarette demand for a recent time period. Fourth, the
data used in this study are the latest available. Five, based on our
results, implications for drug use policy are provided. Several key points
may be noted from our results: (i) Cigarette demand seems to have become
elastic in recent years. This is in contrast to findings in earlier years;
(ii) Consumers seem to view cigarettes and marijuana as substitutes and
cigarettes and illicit drugs as substitutes. (iii) Greater consumer income
increases illegal drug use, but does not seem to have a significant impact
on smoking and marijuana use; (iv) The unemployment rate and health
insurance converge do not seem to significantly affect smoking or drug
use; and (v) Policymakers should pay attention to the cross effects among
drugs in framing drug use policies.
Journal: Applied Economics
Pages: 1071-1076
Issue: 9
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019141
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019141
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Handle: RePEc:taf:applec:v:41:y:2009:i:9:p:1071-1076
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of money and inflation: introduction and overview
Abstract:
We provide an introduction and overview to the 13 applied studies making
up this special theme on money and inflation. The studies cover a wide
range of national and regional experience in the relationship between
inflation and money and employ a variety of applied techniques.
Journal: Applied Economics
Pages: 1199-1201
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840902920641
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902920641
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1199-1201
Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Maliszewski
Author-X-Name-First: Wojciech
Author-X-Name-Last: Maliszewski
Title: Modelling inflation in Georgia
Abstract:
The article explains the behaviour of inflation in Georgia in the
post-stabilization period. Long-run equation linking prices with money and
exchange rate, as well as short-run, dynamic equation for inflation are
estimated. The inflation equation is stable, points to a dominant role of
exchange rate in the inflation behaviour. The equation explains well the
behaviour of inflation after the Russian crises, when inflation increased
sharply but was quickly brought under control when the National Bank of
Georgia kept its monetary policy tight and exchange rate stable.
Journal: Applied Economics
Pages: 1203-1213
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007187
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007187
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1203-1213
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Cerisola
Author-X-Name-First: Martin
Author-X-Name-Last: Cerisola
Author-Name: Gaston Gelos
Author-X-Name-First: Gaston
Author-X-Name-Last: Gelos
Title: What drives inflation expectations in Brazil? An empirical analysis
Abstract:
This study examines the macro-economic determinants of survey inflation
expectations in Brazil since the adoption of inflation targeting in 1999.
The results suggest that the inflation-targeting framework has helped
anchor expectations, with the dispersion of inflation expectations
declining considerably, particularly during periods of high uncertainty.
We also find that apart from the inflation target, the stance of fiscal
policy, as proxied by the ratio of the consolidated primary surplus to
GDP, has been instrumental in shaping expectations. The importance of past
inflation in determining expectations appears to be relatively low, and
the overall empirical evidence does not suggest the presence of
substantial inertia in the inflation process.
Journal: Applied Economics
Pages: 1215-1227
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601166892
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601166892
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1215-1227
Template-Type: ReDIF-Article 1.0
Author-Name: R. Shih
Author-X-Name-First: R.
Author-X-Name-Last: Shih
Author-Name: D. E. Giles
Author-X-Name-First: D. E.
Author-X-Name-Last: Giles
Title: Modelling the duration of interest rate spells under inflation targeting in Canada
Abstract:
We use survival models to analyse the duration of the spells associated
with the interest rate used by the Bank of Canada as its monetary policy
instrument. Both nonparametric and parametric models are estimated,
allowing for right-censoring of the data, and time-varying covariates. We
find that the data are explained well by an accelerated failure time
Weibull model, with the annual rate of inflation and the quarterly rate of
growth in Gross domestic product (GDP) as covariates. The model indicates
that there is positive duration dependence in the interest rate spells,
and that unemployment and exchange rate effects are insignificant.
Journal: Applied Economics
Pages: 1229-1239
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701721232
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721232
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1229-1239
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Tracy Mott
Author-X-Name-First: Tracy
Author-X-Name-Last: Mott
Title: On the behaviour of UK money, velocity, prices, and output in the gold standard period: 1871-1913
Abstract:
This article provides evidence in support of cointegration among the UK
money supply, real output and the price level in the gold standard period,
1871-1913. The series respond to eliminate short run deviations from the
long run equilibrium relation of the equation of exchange. Cointegration
is also observed between the UK and US price levels, with the former also
responding to eliminate short run deviations from the long run equilibrium
relation among the two price levels. Our results for the components of the
quantity equation support arguments that the Bank of England moved
short-term interest rates in response to changes in domestic economic
activity, taken to be an indicator of future changes in its gold reserve
position. Our evidence concerning the UK-US price levels supports the
rising position of the United States as an economic power during this
period.
Journal: Applied Economics
Pages: 1241-1249
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840600994229
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600994229
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1241-1249
Template-Type: ReDIF-Article 1.0
Author-Name: Kyongwook Choi
Author-X-Name-First: Kyongwook
Author-X-Name-Last: Choi
Author-Name: Chulho Jung
Author-X-Name-First: Chulho
Author-X-Name-Last: Jung
Title: Structural changes and the US money demand function
Abstract:
Previous literature on the stability of the US money demand function
suggests mixed results. In this article, we study the stability of the
money demand function from the standpoint of structural changes in the
function. We first investigate if a stable money demand function can be
found for the US for the period from the first quarter of 1959 to the
fourth quarter of 2000. The results show that a stable long-run money
demand function does not exist for the sample period under consideration.
We then estimate unknown structural break points in the variables of the
money demand function using Bai and Perron's (1998) method and test if
there is a stable relationship in each sub-sample period of the break
points. The results show that a stable relationship exists for each
sub-sample period. The estimated income elasticity and interest rate
semi-elasticity are relatively smaller than Ball's (2001) estimates, but
consistent with his argument.
Journal: Applied Economics
Pages: 1251-1257
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007385
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007385
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1251-1257
Template-Type: ReDIF-Article 1.0
Author-Name: Jarko Fidrmuc
Author-X-Name-First: Jarko
Author-X-Name-Last: Fidrmuc
Title: Money demand and disinflation in selected CEECs during the accession to the EU
Abstract:
A panel data set for six countries (Czech Republic, Hungary, Poland,
Romania, Slovakia and Slovenia) is used to estimate money demand with
panel cointegration methods over the recent disinflation period. The basic
money demand model is able to convincingly explain the long-run dynamics
of M2 in the selected countries. However, money demand is found to have
been significantly determined by the euro area interest rates and the
exchange rate against the euro, which indicates possible instability of
money demand functions in the Central and Eastern European countries.
Therefore, direct inflation targeting is an appropriate monetary regime
before the eventual adoption of the euro.
Journal: Applied Economics
Pages: 1259-1267
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019323
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019323
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1259-1267
Template-Type: ReDIF-Article 1.0
Author-Name: M. Sumner
Author-X-Name-First: M.
Author-X-Name-Last: Sumner
Title: Demand for money in Thailand
Abstract:
After a brief review of recent literature, new estimates on a long run of
annual observations of the Thai demand for all the standard measures of
money are presented. The results demonstrate that the demand for real
money balances is a stable function of a scale variable and a coherent
measure of opportunity cost, with all the properties predicted by economic
theory.
Journal: Applied Economics
Pages: 1269-1276
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019398
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019398
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1269-1276
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Title: Cointegration, structural breaks and the demand for money in Bangladesh
Abstract:
This article allows for endogenous structural breaks in the cointegration
equation and investigates if there is a stable demand for money for
Bangladesh. We have used the Gregory and Hansen framework and found that
there was an intercept shift and a well-determined and stable demand for
money in Bangladesh exists.
Journal: Applied Economics
Pages: 1277-1283
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367671
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367671
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1277-1283
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Narayan
Author-X-Name-First: Paresh
Author-X-Name-Last: Narayan
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: The effect of inflation and real wages on productivity: new evidence from a panel of G7 countries
Abstract:
This article examines the effect of inflation and real wages on
productivity within a panel unit root and panel cointegration framework
for the G7 countries over the period 1960 to 2004. The main contribution
of the article is to provide panel long-run estimates of the effect of
inflation and real wages on productivity in the G7 countries over this
period. The article finds that for the panel as a whole a 1% increase in
real wages generates a 0.6% increase in productivity, while the effects of
inflation on productivity are statistically insignificant for most of the
individual countries and for the panel as a whole.
Journal: Applied Economics
Pages: 1285-1291
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701537810
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537810
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1285-1291
Template-Type: ReDIF-Article 1.0
Author-Name: R. Fendel
Author-X-Name-First: R.
Author-X-Name-Last: Fendel
Author-Name: M. Frenkel
Author-X-Name-First: M.
Author-X-Name-Last: Frenkel
Title: Inflation differentials in the Euro area: did the ECB care?
Abstract:
Compared to inflation differentials among regions in the United States,
European Monetary Union (EMU) inflation differentials are larger and more
persistent. Based on augmented monetary policy reactions functions, this
article addresses the question whether the presence of pronounced
inflation differentials in combination with low average inflation rates
has influenced monetary policy decisions of the ECB. The article finds
statistical evidence that the ECB took inflation differentials into
account which may reflect the fear of deflation in low inflation countries
like Germany.
Journal: Applied Economics
Pages: 1293-1302
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701522838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522838
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1293-1302
Template-Type: ReDIF-Article 1.0
Author-Name: Par Osterholm
Author-X-Name-First: Par
Author-X-Name-Last: Osterholm
Title: The time-series properties of Norwegian inflation and nominal interest rate
Abstract:
This article investigates the time-series properties of Norwegian
inflation and nominal interest rate using annual data from 1850 to 2004. A
number of different univariate unit-root tests are employed to examine
whether the time series are mean reverting or generated by unit-root
processes. Results show very strong evidence in favour of mean reversion
in inflation but a unit root in the nominal interest rate. This implies
that there exists no long-run relationship between these two variables, a
conclusion which is further supported by cointegration tests and estimated
vector error correction models. The cointegration analysis also points to
an important potential pitfall when using cointegration techniques on
systems where some variables are stationary processes.
Journal: Applied Economics
Pages: 1303-1309
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701537828
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537828
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1303-1309
Template-Type: ReDIF-Article 1.0
Author-Name: Arto Luoma
Author-X-Name-First: Arto
Author-X-Name-Last: Luoma
Author-Name: Jani Luoto
Author-X-Name-First: Jani
Author-X-Name-Last: Luoto
Title: Modelling the general public's inflation expectations using the Michigan survey data
Abstract:
In this article we discuss a few models developed to explain the general
public's inflation expectations formation and provide some relevant
estimation results. Furthermore, we suggest a simple Bayesian learning
model which could explain the expectations formation process on the
individual level. When the model is aggregated to the population level it
could explain not only the mean values, but also the variance of the
public's inflation expectations. The estimation results of the mean and
variance equations seem to be consistent with the results of the
questionnaire studies in which the respondents were asked to report their
thoughts and opinions about inflation.
Journal: Applied Economics
Pages: 1311-1320
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604339
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604339
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1311-1320
Template-Type: ReDIF-Article 1.0
Author-Name: Andres Gonzalez
Author-X-Name-First: Andres
Author-X-Name-Last: Gonzalez
Author-Name: Luis Melo
Author-X-Name-First: Luis
Author-X-Name-Last: Melo
Author-Name: Carlos Posada
Author-X-Name-First: Carlos
Author-X-Name-Last: Posada
Title: Inflation and money in Colombia: another P-Star model
Abstract:
This document presents the estimation of a recent version of the P-Star
model by Gerlach and Svensson (2003) and its predictions for Colombia
(January 1980 to April 2005). The model is designed to explain the
inflation gap (observed rate minus the target) based on the monetary gap
and the output gap. According to the results, the output gap lacks
significant effects while the monetary gap has significant positive
effects on inflation.
Journal: Applied Economics
Pages: 1321-1329
Issue: 10
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701704493
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704493
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Handle: RePEc:taf:applec:v:41:y:2009:i:10:p:1321-1329
Template-Type: ReDIF-Article 1.0
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Author-Name: Ingrid Nielsen
Author-X-Name-First: Ingrid
Author-X-Name-Last: Nielsen
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: 'I've been to Bali too' (and I will be going back): are terrorist shocks to Bali's tourist arrivals permanent or transitory?
Abstract:
International visitor arrivals to Bali are examined using univariate and
panel Lagrange multiplier (LM) unit root tests with one and two structural
breaks to ascertain if shocks to the time path of tourist arrivals are
permanent or transitory. The univariate LM unit root tests with one and
two structural breaks fail to reject the null hypothesis of a unit root in
international visitor arrivals to Bali. However, the panel LM unit root
tests with one and two structural breaks applied to a panel of Bali's 11
major source markets reject the null and support the alternative
hypothesis of a joint trend-stationary series with transitory shocks. This
result suggests that, the effects of the recent terrorist acts on Bali on
the growth path of tourist arrivals from major markets are only transitory
and that as a consequence Bali's tourism sector is sustainable in the long
run.
Journal: Applied Economics
Pages: 1367-1378
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019356
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019356
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1367-1378
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Aysan
Author-X-Name-First: Ahmet
Author-X-Name-Last: Aysan
Author-Name: Gaobo Pang
Author-X-Name-First: Gaobo
Author-X-Name-Last: Pang
Author-Name: Marie-Ange Veganzones-Varoudakis
Author-X-Name-First: Marie-Ange
Author-X-Name-Last: Veganzones-Varoudakis
Title: Uncertainty, economic reforms and private investment in the Middle East and North Africa
Abstract:
During the 1980s and the 1990s, private investment in the Middle East and
North Africa (MENA) has on average shown a decreasing or stagnant trend.
This contrasts with the situation of the Asian economies, where private
investment has always been more dynamic. In this article, it is
empirically shown for a panel of 39 developing economies among which four
MENA countries - that in addition to the traditional determinants of
investment such as the growth anticipations and the real interest rate -
government policies explain MENA's low investment rate. Insufficient
structural reforms, which have most of the time led to poor financial
development and deficient trade openness have been a crucial factor for
the deficit in private capital formation. The economic uncertainties of
the region have represented another factor of the firm's decisions not to
invest. These uncertainties consisted of the external debt burden and
various measures of volatility.
Journal: Applied Economics
Pages: 1379-1395
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019315
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019315
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1379-1395
Template-Type: ReDIF-Article 1.0
Author-Name: Mårten Bjellerup
Author-X-Name-First: Mårten
Author-X-Name-Last: Bjellerup
Author-Name: Thomas Holgersson
Author-X-Name-First: Thomas
Author-X-Name-Last: Holgersson
Title: A simple multivariate test for asymmetry
Abstract:
Since many macroeconomic models are linear, it is not desirable to use
them with an asymmetric dependent variable. In this article, we formulate
a univariate test for symmetry, based on the third central moment and
extend it to a multivariate test; the test does not require modelling and
it is robust against serial correlation, Autoregressive Conditional
Heteroscedasticity (ARCH) and nonnormality. In the empirical application
of the test it is found that orthodox theory seem to be supported;
consumption expenditure on durable goods is found to be symmetric while
consumption expenditure on nondurable goods is asymmetric for the USA and
the UK, with peaks being higher than troughs are deep. Also, the empirical
importance of the choice between the univariate and the multivariate test
for possibly correlated series is underscored; the results from the two
approaches clearly differ. Given the widespread practice of using
consumption expenditure on nondurable goods as the dependent variable in
linear models for the USA and the UK, our results might be noteworthy.
Journal: Applied Economics
Pages: 1405-1416
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840500428146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500428146
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1405-1416
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Rouwendal
Author-X-Name-First: Jan
Author-X-Name-Last: Rouwendal
Author-Name: Jaap Boter
Author-X-Name-First: Jaap
Author-X-Name-Last: Boter
Title: Assessing the value of museums with a combined discrete choice/count data model
Abstract:
This article assesses the value of Dutch museums using information about
destination choice as well as about the number of trips undertaken by an
actor. Destination choice is analysed by means of a mixed logit model, and
a count data model is used to explain trip generation. We use a
utility-consistent framework in which the discrete choice model for
destination choice is linked to an indirect utility function. The results
are used to compute the compensating variation of particular museums and
of the total group of museums in the sample.
Journal: Applied Economics
Pages: 1417-1436
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019240
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019240
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1417-1436
Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Castello Stefani
Author-X-Name-First: Patricia Castello
Author-X-Name-Last: Stefani
Author-Name: Ciro Biderman
Author-X-Name-First: Ciro
Author-X-Name-Last: Biderman
Title: The evolution of the returns to education and wage differentials in Brazil: a quantile approach
Abstract:
This paper uses quantile regression techniques to analyze the returns to
education across the conditional distribution of wages from individuals
separated both by gender and skin color, while accounting for the
endogeneity of the education decisions. Using data from the Brazilian
households survey (PNAD) for the years of 1988 and 1996, the results
indicate that the returns to education are significantly heterogeneous
across the distribution of earnings, as well as the wage gap between the
groups, according to gender and skin color. Moreover, there has been a
significant improvement in the wage differentials between the groups
across the years.
Journal: Applied Economics
Pages: 1453-1460
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019299
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019299
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1453-1460
Template-Type: ReDIF-Article 1.0
Author-Name: Beyza Ural
Author-X-Name-First: Beyza
Author-X-Name-Last: Ural
Author-Name: William Horrace
Author-X-Name-First: William
Author-X-Name-Last: Horrace
Author-Name: Jin Hwa Jung
Author-X-Name-First: Jin Hwa
Author-X-Name-Last: Jung
Title: Inter-industry gender wage gaps by knowledge intensity: discrimination and technology in Korea
Abstract:
A new gender wage gap decomposition methodology is introduced, which does
not suffer from identification problems caused by unobserved
nondiscriminatory wage structure. The methodology is used to measure the
relative size of Korean gender wage gaps, from 1994 to 2000 across
industries, differentiated by industrial knowledge intensity, where
knowledge intensity is the extent to which industries produce or employ
high-technology products. Korea represents an important case study, since
it possesses one of the fastest growing knowledge-intensive economies
among industrialized countries. Empirical results indicate that over this
period, discrimination (the unexplained portion of the gender wage gaps)
in Korea was statistically smaller in knowledge-intensive industries than
in industries with low knowledge intensity. Also, discrimination was
declining on average over the period. This suggests that continued growth
in knowledge-intensive industries in Korea may lead to further declines in
the overall gender gap.
Journal: Applied Economics
Pages: 1437-1452
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019281
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019281
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1437-1452
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Cook
Author-X-Name-First: Steven
Author-X-Name-Last: Cook
Author-Name: Dimitrios Vougas
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Vougas
Title: Unit root testing against an ST-MTAR alternative: finite-sample properties and an application to the UK housing market
Abstract:
A class of smooth transition momentum-threshold autoregressive (ST-MTAR)
tests is proposed to allow testing of the unit root hypothesis against an
alternative of asymmetric adjustment about a smooth nonlinear trend.
Monte-Carlo simulation is employed to derive finite-sample critical values
for the proposed test and illustrate its attractive power properties
against a range of stationary alternatives. The empirical relevance of the
ST-MTAR test is highlighted via an application to aggregate house price
data for the UK. Interestingly, house prices are found to exhibit
structural change characterized a fitted logistic smooth transition
process, with the newly proposed ST-MTAR test providing the most
significant results of the alternative smooth transition unit root tests
available.
Journal: Applied Economics
Pages: 1397-1404
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019331
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019331
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1397-1404
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale
Author-X-Name-First: Tony
Author-X-Name-Last: Caporale
Author-Name: Kyongwook Choi
Author-X-Name-First: Kyongwook
Author-X-Name-Last: Choi
Title: The start of interest rate smoothing in the US: is it a monetary or fiscal story?
Abstract:
This article revisits the key issue raised by researchers who have
empirically investigated the behaviour of short term US interest rates
during the period 1890-1933. The seminal article of Mankiw, Miron and Weil
(1987) argues that changes in the behaviour of nominal interest rates is
best explained as a monetary regime shift that occurred with the founding
of the Federal reserve in 1914. This explanation is rejected by Newbold,
Lehybourne, Sollis and Wohar (2001) who show that fiscal and regulatory
changes (driven by the needs of World War1 financing) best explain the
changing behaviour of interest rates that they identify as beginning in
mid-1917. We find, using three different statistical procedures that a
structural break in the second moment of interest rates occurred in early
1915. This supports the monetary regime shift argument of MMW by
illustrating that the interest rate smoothing policies of the FED can be
observed as a variance break in short term interest rates.
Journal: Applied Economics
Pages: 1361-1365
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019380
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019380
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1361-1365
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Fischer
Author-X-Name-First: Christian
Author-X-Name-Last: Fischer
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Title: The nature of the relationship between international tourism and international trade: the case of German imports of Spanish wine
Abstract:
This article deals with the relationship between international trade and
tourism. We focus on the effect that German tourism to Spain has on German
imports of Spanish wine. Due to the different stochastic properties of the
series under analysis, which display different orders of integration, a
methodology is used based on long memory regression models, where tourism
is supposed to be exogenous. The period covered is January 1998 to
November 2004. The results show that tourism has an effect on wine imports
that lasts between 2 and 9 months. Disaggregating the imports across the
different types of wine, it is observed that only for red wines from
Navarra, Penedus and Valdepenas, and to a certain extent for sparkling
wine, tourism produces an effect on future import demand. From a
policy-making perspective our results imply that the impact of tourism on
the host economy is not only direct and short-term but also oblique and
delayed, thus reinforcing the case for tourism as a means for economic
development.
Journal: Applied Economics
Pages: 1345-1359
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019349
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019349
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1345-1359
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Edwards
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Edwards
Author-Name: Benhua Yang
Author-X-Name-First: Benhua
Author-X-Name-Last: Yang
Title: An empirical refinement of the relationship between growth and volatility
Abstract:
The link between business cycle volatility and the long-run growth rate
has received increasing attention in the literature over the last ten
years. Yet neither is there a theoretical consensus nor consistent
empirical evidence that would lead us to believe the relationship is
positive, negative or nonexistent either within broadly defined regions or
over time. This study investigates a possible cause for this phenomenon.
What we find is that out of 14 popularly defined sub regions, only 7 can
be constrained over time within the respective sub region, while only two
broadly-defined regional classifications are justified. We did find that
the grouping of OECD countries is statistically valid, but only if the
relationship is allowed to vary over time. We suggest a refinement of the
current empirical work that takes into account both more narrowly defined
regional and time parametric heterogeneity.
Journal: Applied Economics
Pages: 1331-1343
Issue: 11
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019307
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019307
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Handle: RePEc:taf:applec:v:41:y:2009:i:11:p:1331-1343
Template-Type: ReDIF-Article 1.0
Author-Name: Mika Kuismanen
Author-X-Name-First: Mika
Author-X-Name-Last: Kuismanen
Title: Piece-wise or differentiable budget constraint? Estimating labour supply function for Finnish females
Abstract:
Various estimation approaches have been used in recent literature to
study the effect of nonlinear income taxation on labour supply. Different
techniques and data sets have produced a wide range of income and
substitution elasticities. In this study, we utilize register data
provided by the tax authorities. This gives us good possibilities to
construct detailed budget constraints for each individual in our sample.
We estimate labour supply function using the piece-wise linear budget
constraint approach and the differentiable budget constraint approach
suggested by MaCurdy et al. (1990). Our results support the view that if
one is able to mimic the actual budget set closely and if the degree of
progression is high then these two methods are likely to produce similar
results. Some sensitivity analysis is also carried out using alternative
assumptions concerning the budget sets.
Journal: Applied Economics
Pages: 1461-1472
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032144
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032144
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1461-1472
Template-Type: ReDIF-Article 1.0
Author-Name: Mercedes Gumbau-Albert
Author-X-Name-First: Mercedes
Author-X-Name-Last: Gumbau-Albert
Author-Name: Joaquin Maudos
Author-X-Name-First: Joaquin
Author-X-Name-Last: Maudos
Title: Patents, technological inputs and spillovers among regions
Abstract:
This article analyses the importance of different technological inputs
(R&D and human capital) and different spillovers in explaining the
differences in patenting among Spanish regions in the period 1986 to 2003.
The analysis is based on the estimation of a knowledge production
function. A region's own R&D activities and human capital are observed to
have a positive significant effect on innovation output, measured by the
number of patents. R&D spillovers weighted by the distance and the volume
of trade flows between regions cause positive effects on a region's
patents. However, distance matters more than the intensity of trade flows
and the R&D spillover effects between regions are bounded: spillovers from
closer regions perform better than spillovers from distant regions. On the
opposite side, human capital spillovers do not cause any effect outside
the region itself.
Journal: Applied Economics
Pages: 1473-1486
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032250
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032250
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1473-1486
Template-Type: ReDIF-Article 1.0
Author-Name: Elisenda Paluzie
Author-X-Name-First: Elisenda
Author-X-Name-Last: Paluzie
Author-Name: Jordi Pons
Author-X-Name-First: Jordi
Author-X-Name-Last: Pons
Author-Name: Daniel Tirado
Author-X-Name-First: Daniel
Author-X-Name-Last: Tirado
Title: A test of the market potential equation in Spain
Abstract:
In this article, we examine the relationship between regional wages in
Spain and the market potential of these regions in the period 1955 to
1995. We demonstrate the existence of a spatial wage structure, in which
wages fall with increasing distance from the highest income regions. This
result strengthens the hypothesis that agglomerative forces were operating
in Spain during the second half of the twentieth century.
Journal: Applied Economics
Pages: 1487-1493
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032169
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032169
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1487-1493
Template-Type: ReDIF-Article 1.0
Author-Name: David Feldman
Author-X-Name-First: David
Author-X-Name-Last: Feldman
Author-Name: Robert Archibald
Author-X-Name-First: Robert
Author-X-Name-Last: Archibald
Title: Revealed preferences for car tax cuts: an empirical study of perceived fiscal incidence
Abstract:
Voting in an election in which elimination of the local car tax is the
central issue shows how a highly visible universal tax cut can prevail in
the electoral process even if benefits are skewed toward upper income
households. These results are consistent with positive models of fiscal
structure choice in which fiscal systems are the consequence of support
maximizing politicians attempting to supply net benefits to easily
identifiable interest groups without generating significant opposition
from other groups.
Journal: Applied Economics
Pages: 1495-1500
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032201
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032201
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1495-1500
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Zietz
Author-X-Name-First: Joachim
Author-X-Name-Last: Zietz
Author-Name: Xiaolin Zhao
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Zhao
Title: The response of household incomes to stock price and GDP growth by income quantile
Abstract:
How household incomes respond to GDP and stock price growth is important
for an understanding of the economic costs of business cycles and the
driving forces of income inequality over time. This article examines to
what extent household incomes react differently across income distribution
quantiles and time. It employs U.S. Panel Study of Income Dynamics data
for the period 1979-2000 and quantile regression techniques. Significant
differences are found in how household incomes respond across income
quantiles. For the same income quantiles, large differences are identified
when the time period 1979-1987 is compared to 1988-2000.
Journal: Applied Economics
Pages: 1501-1512
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032151
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032151
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1501-1512
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Munda
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Munda
Author-Name: Michela Nardo
Author-X-Name-First: Michela
Author-X-Name-Last: Nardo
Title: Noncompensatory/nonlinear composite indicators for ranking countries: a defensible setting
Abstract:
Composite indicators (or indexes) are very common in economic and
business statistics for benchmarking the mutual and relative progress of
countries in a variety of policy domains such as industrial
competitiveness, sustainable development, globalization and innovation.
The proliferation of the production of composite indicators by all the
major international organizations is a clear symptom of their political
importance and operational relevance in policy-making. As a consequence,
improvements in the way these indicators are constructed and used seem to
be a very important research issue from both the theoretical and
operational points of view. This article aims at contributing to the
improvement of the overall quality of composite indicators (or indexes) by
looking at one of their technical weaknesses, that is, the aggregation
convention used for their construction. For this aim, we build upon
concepts coming from multi-criteria decision analysis, measurement theory
and social choice. We start from the analysis of the axiomatic system
underlying the mathematical modelling commonly used to construct composite
indicators. Then a different methodological framework, based on
noncompensatory/nonlinear aggregation rules, is developed. Main features
of the proposed approach are: (i) the axiomatic system is made completely
explicit and (ii) the sources of technical uncertainty and imprecise
assessment are reduced to the minimum possible degree.
Journal: Applied Economics
Pages: 1513-1523
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019364
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019364
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1513-1523
Template-Type: ReDIF-Article 1.0
Author-Name: Krishna Iyer
Author-X-Name-First: Krishna
Author-X-Name-Last: Iyer
Author-Name: Alicia Rambaldi
Author-X-Name-First: Alicia
Author-X-Name-Last: Rambaldi
Author-Name: Kam Ki Tang
Author-X-Name-First: Kam Ki
Author-X-Name-Last: Tang
Title: How trade and foreign investment affect the growth of a small but not so open economy: Australia?
Abstract:
This article analyses the impact of trade and foreign investment on a
small but not so open economy, Australia, whose growth rate outpaced the
majority of the OECD countries in the last decade. We model five channels
of outward orientation: exports, imports, foreign direct investment,
foreign portfolio investment and other foreign investment. A cointegrated
vector autoregressive model, complemented by a robust Granger noncausality
test, is specified to identify permanent channels of outward orientation.
Imports and direct investment are found to have a growth effect in the
long run. The effect of imports is almost three times that of direct
investment.
Journal: Applied Economics
Pages: 1525-1532
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032177
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032177
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1525-1532
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Beatty
Author-X-Name-First: Timothy
Author-X-Name-Last: Beatty
Title: Semiparametric quantile Engel curves and expenditure elasticities: a penalized quantile regression spline approach
Abstract:
This article estimates nonparametric Engel curves and expenditure
elasticities by quantile for an exhaustive set of household expenditure
categories using a novel estimation approach. Engel curves and expenditure
elasticities are vital inputs to evaluating the effects of public
policies. This article examines whether Engel curves and expenditure
elasticities evaluated for an average individual are importantly different
from the Engel curves and expenditure elasticities at the upper and lower
quantiles.
Journal: Applied Economics
Pages: 1533-1542
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032185
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032185
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1533-1542
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Basile
Author-X-Name-First: Roberto
Author-X-Name-Last: Basile
Author-Name: Sergio de Nardis
Author-X-Name-First: Sergio de
Author-X-Name-Last: Nardis
Author-Name: Alessandro Girardi
Author-X-Name-First: Alessandro
Author-X-Name-Last: Girardi
Title: Pricing to market of Italian exporting firms
Abstract:
This article investigates the pricing-to-market (PTM) behaviour of
Italian exporting firms, using quarterly survey data by sector and by
region over the period 1999q1 to 2005q2. A partial equilibrium imperfect
competition model provides the structure according to which the
orthogonality of structural shocks is derived. Impulse response analysis
shows non-negligible reactions of export-domestic price margins to
unanticipated changes in cost competitiveness and in foreign and domestic
demand levels, even though these effects appear to be of a transitory
nature. For the period 1999 to 2001, a typical PTM behaviour emerges,
while, during the most recent years favourable foreign demand conditions
allowed firms to increase their export-domestic price margins in face of a
strong deterioration of their cost competitiveness. Macroeconomic
implications of the observed PTM behaviour are also discussed.
Journal: Applied Economics
Pages: 1543-1562
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032219
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032219
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1543-1562
Template-Type: ReDIF-Article 1.0
Author-Name: V. J. Cano Fernandez
Author-X-Name-First: V. J.
Author-X-Name-Last: Cano Fernandez
Author-Name: G. Guirao Perez
Author-X-Name-First: G.
Author-X-Name-Last: Guirao Perez
Author-Name: M. C. Rodriguez Donate
Author-X-Name-First: M. C.
Author-X-Name-Last: Rodriguez Donate
Author-Name: M. E. Romero Rodriguez
Author-X-Name-First: M. E.
Author-X-Name-Last: Romero Rodriguez
Title: An analysis of count data models for the study of exclusivity in wine consumption
Abstract:
Several models which analyse count data have been proposed in econometric
literature. These models allow the discrete, nonnegative nature of
specific phenomena of interest to be gathered in a appropriate way and can
be useful for the explanation of specific preference structures among
individuals. In this work, an analysis of the number of wine types
consumed by residents of Tenerife is carried out, with an aim to observe
which characteristics determine the exclusivity in its consumption, given
the current context of increased competition in this sector. The specific
characteristics of the considered variable allow the study to cover two
aspects. The first is methodological, and is seen by the variety of models
that may be considered in this case. This focus consists in comparing
several possibilities, which fit the type of count data involved. The
second aspect is clearly empirical, and is based on the description of not
only the most appropriate decision-making mechanism for the study but in
the identification of those factors that explain the diversity in wine
consumption.
Journal: Applied Economics
Pages: 1563-1574
Issue: 12
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032227
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032227
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Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1563-1574
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of economic growth: introduction and overview
Abstract:
We introduce and summarize the results of 12 empirical studies that make
up this special theme on economic growth, covering a wide range of
countries and issues.
Journal: Applied Economics
Pages: 1575-1577
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840903016613
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903016613
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Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1575-1577
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Everhart
Author-X-Name-First: Stephen
Author-X-Name-Last: Everhart
Author-Name: Jorge Martinez- Vazquez
Author-X-Name-First: Jorge Martinez-
Author-X-Name-Last: Vazquez
Author-Name: Robert McNab
Author-X-Name-First: Robert
Author-X-Name-Last: McNab
Title: Corruption, governance, investment and growth in emerging markets
Abstract:
The article investigates the potential impact of corruption on economic
growth by examining the effect that corruption may have on several
significant determinants of economic growth, namely, investment in human,
private and public capital, and on governance. Our theoretical approach
allows for corruption to influence economic growth directly and indirectly
through different investment and governance channels. All previous
empirical work on this issue has been based on national income and product
accounts (NIPA) data, which do not normally break down gross domestic
investment into its private and public sector, and if they do, they
misclassify investment by public enterprises as private investment,
potentially biasing empirical findings. In this article we use a data set
from the International Finance Corporation that bypasses these problems.
We find that the impact of corruption on the level of public investment
appears to be more ambiguous than it has been found in the previous
literature. We, however, find that the impact of corruption on the
accumulation of private capital is significantly more damaging than what
has been previously found. We also find that the impact of corruption on
governance is unambiguously negative, which further deters economic
growth.
Journal: Applied Economics
Pages: 1579-1594
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701439363
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Template-Type: ReDIF-Article 1.0
Author-Name: James Ang
Author-X-Name-First: James
Author-X-Name-Last: Ang
Title: Financial development and the FDI-growth nexus: the Malaysian experience
Abstract:
This article examines the FDI-growth nexus in the small open economy of
Malaysia by controlling for the level of financial development. Financial
development is proxied by a composite index, which is a summary measure of
four financial development indicators. Using time-series data from 1965 to
2004, the results show that FDI and financial development are positively
related to output in the long-run. The impact of FDI on output is enhanced
through financial development. To supplement these findings, we assess the
causal relationships between the variables using the recent causality
tests available in the literature. The results indicate that economic
growth causes FDI growth in the long-run, but no feedback relationship is
observed.
Journal: Applied Economics
Pages: 1595-1601
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222553
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Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1595-1601
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Liu
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Liu
Author-Name: Chang Shu
Author-X-Name-First: Chang
Author-X-Name-Last: Shu
Author-Name: Peter Sinclair
Author-X-Name-First: Peter
Author-X-Name-Last: Sinclair
Title: Trade, foreign direct investment and economic growth in Asian economies
Abstract:
Despite the increasing role of foreign direct investment (FDI) in
economic development, very limited research has been carried out on the
causal links between trade, FDI and economic growth in Asian economies.
This study examines empirically the inter-play between exports, imports,
FDI and economic growth for nine Asian economies by conducting
multivariate causality tests in the vector error correction model (VECM)
framework. The results reveal two-way causal connections between trade,
inward FDI, inward merger and acquisitions (M&As) and growth for most of
the sample economies. There is a unidirectional causal link running from
outward M&As to growth and trade. These findings suggest that export
expansion, import liberalization, FDI inflows and inward M&As are integral
elements of the growth process in Asian economies.
Journal: Applied Economics
Pages: 1603-1612
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701579176
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Template-Type: ReDIF-Article 1.0
Author-Name: Yasuyuki Sawada
Author-X-Name-First: Yasuyuki
Author-X-Name-Last: Sawada
Title: The immiserizing growth: an empirical evaluation
Abstract:
This article examines the empirical validity of immiserizing growth by
using the revealed preference framework, together with macroeconomic
growth data. We identify 26 episodes of immiserizing growth in the
post-war world economy, mostly in Africa and Latin America. We also test
statistically the restriction imposed by the standard macroeconomic
framework that rule out the existence of immiserizing growth. The overall
probability of immiserizing growth is found to be minimal in a cross
section of countries.
Journal: Applied Economics
Pages: 1613-1620
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802052099
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802052099
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Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Batten
Author-X-Name-First: Jonathan
Author-X-Name-Last: Batten
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: An analysis of the relationship between foreign direct investment and economic growth
Abstract:
Employing a panel data modelling technique, we contribute to two critical
research issues: what is the link between Foreign Direct Investment (FDI)
and economic growth and does the relationship change under different
educational, institutional and economic conditions? Overall, the analysis
supports the view that FDI has a stronger positive impact on economic
growth in countries with a higher level of education attainment, openness
to international trade and stock market development, and a lower rate of
population growth and lower level of risk. Thus, countries undertaking
reform of cross-border capital restrictions and controls and initiating
other policy aimed at encouraging FDI need to ensure that broader social
policy objectives-such as education and institutional reform-are also
undertaken to leverage the benefits from FDI.
Journal: Applied Economics
Pages: 1621-1641
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701493758
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Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1621-1641
Template-Type: ReDIF-Article 1.0
Author-Name: Claude Lopez
Author-X-Name-First: Claude
Author-X-Name-Last: Lopez
Author-Name: Javier Reyes
Author-X-Name-First: Javier
Author-X-Name-Last: Reyes
Title: Stationary properties of the real interest rate and the per-capita consumption growth rate: empirical evidence for theoretical arguments
Abstract:
Many economic theories connecting the real interest rate and the
per-capita consumption growth rate require that both rates evolve together
over time. This article investigates whether these rates present similar
stationary behaviour for the seven most industrialized countries over the
1957-2005 period. The analysis relies on the unit root tests developed by
Elliott et al. (1996) and Lopez (2006) to look for stationary or
regime-wise stationary behaviour, respectively. Furthermore, the final
break selection uses Bai and Perron's (2003) method. The results show, for
all the countries considered, that both rates are either stationary or
regime-wise stationary with the same number of breaks and, mostly, with
corresponding dates. The results hold whether the rates are calculated
annually or quarterly.
Journal: Applied Economics
Pages: 1643-1651
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802243805
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Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1643-1651
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Maheshwar Rao
Author-X-Name-First: Maheshwar
Author-X-Name-Last: Rao
Title: Openness and growth in Fiji: some time series evidence
Abstract:
Compared to many cross-country studies on the determinants of growth
rate, time series works are relatively few and limited in scope. However,
time series studies are useful for country-specific policies. But in many
recent works ad hoc specifications have been used to analyse the
contribution of various factors to growth. This article uses an improved
specification to estimate the effects of openness on growth in a small
open economy namely Fiji. In addition to trade openness, we include, as
additional variables, the basic conditioning variables namely factor
inputs into our specification. The need for the inclusion of some basic
conditioning variables has been emphasized by Boswoth and Collins (2003)
in their cross country studies. Our results show that trade openness and
output are cointegrated. Neglecting the conditioning variables seems to
lead to some overestimation of the effects of openness and at times a
cointegrating vector may not exist.
Journal: Applied Economics
Pages: 1653-1662
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601007252
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Template-Type: ReDIF-Article 1.0
Author-Name: Hailin Liao
Author-X-Name-First: Hailin
Author-X-Name-Last: Liao
Author-Name: Xiaohui Liu
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Liu
Title: Export-total factor productivity growth nexus in East Asian economies
Abstract:
Despite increasing interest in the relationship between trade and
macro-economic performance in development economics, very limited studies
have been conducted on the causal links between exports and productivity
growth in Asian economies. This article examines empirically the interplay
between exports and productivity growth for eight East Asian economies in
a multivariate framework by applying bound tests and modified Wald tests.
The results indicate that causality is bidirectional in the case of Korea,
Singapore and Taiwan, while unidirectional from productivity to exports
for Mainland China, Hong Kong, Indonesia, Malaysia and the Philippines.
These findings provide little support for the conventional export-led
growth hypothesis.
Journal: Applied Economics
Pages: 1663-1675
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032193
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032193
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Template-Type: ReDIF-Article 1.0
Author-Name: Tarkan Cavusoglu
Author-X-Name-First: Tarkan
Author-X-Name-Last: Cavusoglu
Title: Growth effects of currency mismatches: evidence from emerging economies
Abstract:
This article investigates empirically the effects of currency mismatches
on economic growth and volatility of growth in emerging market economies.
Using the Arellano-Bond dynamic panel data approach, the analyses provide
evidence on the presence of adverse growth effects of currency mismatches.
This illustrates the crucial role played by foreign currency denominated
debts in the propagation mechanism of contractionary depreciations in
emerging economies in the last decade. Further evidence from estimations
implies that the adverse effects of mismatches on growth and growth
volatility are more pronounced with higher exchange rate fluctuations.
Journal: Applied Economics
Pages: 1677-1690
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131714
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131714
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Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1677-1690
Template-Type: ReDIF-Article 1.0
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Author-Name: Ali Al-Elg
Author-X-Name-First: Ali
Author-X-Name-Last: Al-Elg
Author-Name: Haider Madani
Author-X-Name-First: Haider
Author-X-Name-Last: Madani
Title: Causality between financial development and economic growth: an application of vector error correction and variance decomposition methods to Saudi Arabia
Abstract:
This article makes an attempt to test the possible directions of
causality between financial development and economic growth, which were
labelled by Patrick (1966) as the supply-leading and demand-following
hypothesis. Saudi Arabia is taken as a case study. The methods applied are
the error correction and variance decompositions techniques including the
most recently developed 'long-run structural modelling (LRSM)' (Pesaran
and Shin, 2002), which by imposing exactly identifying and overidentifying
restrictions on the cointegrating vector has taken care of a major
limitation of the conventional cointegrating estimates in that they were
atheoretical in nature. To the best of our knowledge, there has not been
any study on this issue with the application of the techniques that
incorporate 'LRSM'. The stability of the functions has also been tested by
Cumulative Sum (CUSUM), Cumulative Sum of Squares (CUSUMSQ) and Chow Test
(CHOW) tests. Our findings, based on the above mentioned rigorous
techniques, tend to suggest that the direction of causation between
financial development and economic growth is supply-leading (rather than
demand-following), as expected at the early stage of development. These
findings have clear policy implications in that a pro-active policy of
growth and reform of the financial sector will help enhance economic
growth in an open developing economy like Saudi Arabia.
Journal: Applied Economics
Pages: 1691-1699
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701320233
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Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1691-1699
Template-Type: ReDIF-Article 1.0
Author-Name: Karima Saci
Author-X-Name-First: Karima
Author-X-Name-Last: Saci
Author-Name: Gianluigi Giorgioni
Author-X-Name-First: Gianluigi
Author-X-Name-Last: Giorgioni
Author-Name: Ken Holden
Author-X-Name-First: Ken
Author-X-Name-Last: Holden
Title: Does financial development affect growth?
Abstract:
This article contributes to the literature on the relationship between
financial development and economic growth in three ways: it utilizes
recently developed techniques for generalized methods of moments (GMM)
one-step estimation with dynamic panel models, it focuses exclusively on a
sample of developing countries and it uses as proxies for financial
development variables which capture both banking sector and stock market
effects. The results provide evidence, based on a panel of annual data for
30 developing countries, that while the stock market variables are
positively and significantly related to growth, their presence results in
the standard banking sector variables, credit to the private sector and
liquid liabilities, having negative effects on growth.
Journal: Applied Economics
Pages: 1701-1707
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335538
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335538
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Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1701-1707
Template-Type: ReDIF-Article 1.0
Author-Name: Chew Ging Lee
Author-X-Name-First: Chew Ging
Author-X-Name-Last: Lee
Title: Foreign direct investment, pollution and economic growth: evidence from Malaysia
Abstract:
The bounds test developed by Pesaran et al. (2001) is applied to examine
the existence of a long-run relationship between foreign direct investment
(FDI) inflows, pollution and output of Malaysia. Granger causality tests
are also utilized to test for the presence of the short-run and long-run
causal relationship between these variables. Both FDI inflows and
pollution have short-run causal relationship on output. Output only has
long-run causal relationship on FDI inflows.
Journal: Applied Economics
Pages: 1709-1716
Issue: 13
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701564376
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564376
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Handle: RePEc:taf:applec:v:41:y:2009:i:13:p:1709-1716
Template-Type: ReDIF-Article 1.0
Author-Name: Garrick Blalock
Author-X-Name-First: Garrick
Author-X-Name-Last: Blalock
Author-Name: Vrinda Kadiyali
Author-X-Name-First: Vrinda
Author-X-Name-Last: Kadiyali
Author-Name: Daniel Simon
Author-X-Name-First: Daniel
Author-X-Name-Last: Simon
Title: Driving fatalities after 9/11: a hidden cost of terrorism
Abstract:
We show that the public's response to terrorist threats can have
unintended consequences that rival the attacks themselves in severity.
Driving fatalities increased significantly after the 11 September 2001
terrorist attacks, events that prompted many travellers to substitute road
transportation for safer air transportation. After controlling for time
trends, weather, road conditions and other factors, we find that
travellers' response to 9/11 resulted in 327 driving deaths per month in
late 2001. Moreover, while the effect of 9/11 weakened over time, as many
as 2300 driving deaths may be attributable to the attacks.
Journal: Applied Economics
Pages: 1717-1729
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601069757
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601069757
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1717-1729
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent
Author-X-Name-First: Robert
Author-X-Name-Last: Brent
Title: A cost-benefit analysis of female primary education as a means of reducing HIV/AIDS in Tanzania
Abstract:
This article, uses panel data related to 20 Tanzania regions and 8 years
to estimate the direct and indirect effects of female primary education on
HIV/AIDS rates. A recursive framework for education, income and infections
is employed, based on two autoregressive equations that allow us to obtain
dynamic estimates of effectiveness. We find that the indirect effect
working through changes in income outweighs the direct positive effect of
education on infections, implying that female education can be effective
as an intervention to lower the disease in Tanzania. The estimates of
effectiveness are then utilized to carry out a cost-benefit analysis of
the education expenditures. The human capital approach is used to measure
the benefits. Irrespective of the timing of the benefits and costs, and
the discount rate alternatives we consider, our best estimates result in
positive net-benefits, with benefit-cost ratios in the range 1.3-2.9.
Journal: Applied Economics
Pages: 1731-1743
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032235
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032235
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1731-1743
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Bailey
Author-X-Name-First: Christopher
Author-X-Name-Last: Bailey
Author-Name: Jason Taylor
Author-X-Name-First: Jason
Author-X-Name-Last: Taylor
Title: A concentration index for differentiated products: the case of religious competition
Abstract:
In the past, scholars have used a Herfindahl-Hirschman Index using
denominational market shares to measure the competitiveness of religious
markets. However, this approach ignores both the imperfect
substitutability between denominations and the degree of competition
within denominations. These two shortcomings make the current index a
suspect measure of religious competition; it often falsely identifies
which market micro-economists would generally consider the more
competitive one. We develop a new religious competition index that
incorporates intra-denominational competition and creates a
'substitutability parameter' to better specify the appropriate degree of
inter-denominational competition. While the model developed in this
article applies specifically to religious markets, our index of
competition could be expanded to other economic markets where such a
substitutability parameter is meaningful.
Journal: Applied Economics
Pages: 1745-1759
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131698
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131698
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1745-1759
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Zubaidi Baharumshah
Author-X-Name-First: Ahmad Zubaidi
Author-X-Name-Last: Baharumshah
Author-Name: Siti Hamizah Mohd
Author-X-Name-First: Siti Hamizah
Author-X-Name-Last: Mohd
Author-Name: Sung Ahn
Author-X-Name-First: Sung
Author-X-Name-Last: Ahn
Title: On the predictive power of monetary exchange rate model: the case of the Malaysian ringgit/US dollar rate
Abstract:
The predictive power of the monetary model for the Malaysian ringgit/US
dollar (RM/USD) rate is analysed using quarterly data ending in 2006:Q3.
We find compelling evidence of a long-run relationship between exchange
rates and the economic fundamental determinant. Macroeconomic factors
systematically affect the long-run movement of the RM/USD rate.
Additionally, the RM/USD rate was overvalued by about 10% several quarters
before the 1997 crisis; after the crisis, rates fluctuated close to the
equilibrium value. The out-of-sample forecasts demonstrate that the
monetary model outperforms the naive random walk model. The monetary and
Purchasing Power Parity (PPP) models do well at the four to eight quarters
horizon.
Journal: Applied Economics
Pages: 1761-1770
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840902817771
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902817771
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1761-1770
Template-Type: ReDIF-Article 1.0
Author-Name: Lee Chin
Author-X-Name-First: Lee
Author-X-Name-Last: Chin
Author-Name: Muzafar Shah Habibullah
Author-X-Name-First: Muzafar Shah
Author-X-Name-Last: Habibullah
Author-Name: M. Azali
Author-X-Name-First: M.
Author-X-Name-Last: Azali
Title: Tests of different monetary aggregates for the monetary models of the exchange rate in five ASEAN countries
Abstract:
This study examines the usefulness of divisia money, relative to simple
sum money, for exchange rate modelling in a period of rapid financial
deregulation. This comparison is conducted using the monetary model of the
exchange rate. In the long-run modelling, the divisia money is
significantly superior to simple sum money in the case of Malaysia and the
Philippines while indifferent for Indonesia, Singapore and Thailand.
Journal: Applied Economics
Pages: 1771-1783
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840902845517
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902845517
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1771-1783
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu
Author-X-Name-First: Chun-Chu
Author-X-Name-Last: Liu
Title: A study of optimal weights restriction in Data Envelopment Analysis
Abstract:
Data Envelopment Analysis (DEA) is a mathematical programming approach to
assessing relative efficiencies within a group of Decision Making Units
(DMUs). An important outcome of such an analysis is a set of virtual
multipliers or weights accorded to each (input or output) factor taken
into account. Due to the factor weight flexibility of the DEA model, a DMU
may assign very low-factor weight scores to some of its unfavourable
inputs or outputs and appear as efficient, thus producing nonsensical
results in some cases. This study focuses on this shortcoming to integrate
an optimal weights restriction model and absolute restriction method to
restricting weight flexibility in DEA, so that the evaluation result can
be more realistic, and finally takes the garbage clearance of each
district in Kaohsiung city in Taiwan as an example for the illustration.
Journal: Applied Economics
Pages: 1785-1790
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131706
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131706
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1785-1790
Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chun Chang
Author-X-Name-First: Shu-Chun
Author-X-Name-Last: Chang
Title: Assessing economic activities - an example from central business districts
Abstract:
The Central Business District (CBD) is a dynamic part of the city that
changes drastically over time, and responds to forces and demands for
activities from within and from other countries. However, it is extremely
difficult to quantify the various propositions put forward for measuring
economic activities in the CBD due to the paucity of statistical data.
Planning intervention thus becomes extremely difficult as other forces
beyond the control or knowledge of the planner play crucial roles in
determining what activities will locate in the CBD and where they will
locate. This study, attempts to explore a view of how to measure and
assess central business district economic activities for planning
purposes. It follows a critical discussion of the nature of the CBD by
pointing to empirical studies, including examples from the New York
metropolitan region and the city of London. Moreover, it discusses
indicators could be used to measure and assess economic activities in the
CBD by highlighting planning purposes covering the entire issue.
Journal: Applied Economics
Pages: 1791-1797
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131680
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131680
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1791-1797
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Heiland
Author-X-Name-First: Frank
Author-X-Name-Last: Heiland
Title: Does the birth order affect the cognitive development of a child?
Abstract:
This article investigates the link between position in the birth order
and early scholastic ability. Using matched mother-child data from the
National Longitudinal Survey of Youth (1979 cohort, NLSY79), I find that
being the first-born is beneficial even after controlling for (nonlinear)
effects of family size and child characteristics. The verbal ability of
first-borns is about one-tenth of a SD higher than for children in the
middle of the birth order. There is no evidence that last-borns fare
better than intermediate children. The first-born advantage is confirmed
by estimates from within-family variation models and I argue that the
findings are consistent with the resource dilution hypothesis.
Journal: Applied Economics
Pages: 1799-1818
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601083220
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601083220
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1799-1818
Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim
Author-X-Name-First: Sangho
Author-X-Name-Last: Kim
Author-Name: Hyunjoon Lim
Author-X-Name-First: Hyunjoon
Author-X-Name-Last: Lim
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Title: Imports, exports and total factor productivity in Korea
Abstract:
This study investigates the relationship between trade and economic
growth in Korea during 1980-2003. We find Granger causality from imports
to Total Factor Productivity (TFP) growth, and the absence of any causal
relation between exports and TFP. We then, empirically examine the impact
of various trade variables on TFP growth. Our results indicate that
imports have a significant positive effect on TFP growth, but exports do
not. Furthermore, our results suggest that the positive impact of imports
stems not only from competitive pressures arising from the imports of
consumer goods but also from technological transfers embodied in imports
of capital goods and imports from developed countries. Most of our
empirical results still hold when we replace TFP growth with Gross
Domestic Profit (GDP) growth as the dependent variable.
Journal: Applied Economics
Pages: 1819-1834
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601032243
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601032243
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1819-1834
Template-Type: ReDIF-Article 1.0
Author-Name: Miriam Manchin
Author-X-Name-First: Miriam
Author-X-Name-Last: Manchin
Author-Name: Anna Maria Pinna
Author-X-Name-First: Anna Maria
Author-X-Name-Last: Pinna
Title: Border effects in the enlarged EU area: evidence from imports to accession countries
Abstract:
By looking at imports of Eastern European countries, we provide novel
insights on the importance and magnitude of border effects and on how they
are linked with technical barriers to trade. All Central Eastern European
Countries (CEECs) traded with themselves more than with other countries.
We grouped products into three categories; depending on the importance of
applicaple technical barriers. Our results show border effects are the
largest for products, where we expect to have the most important technical
barriers. We assess if border effects changed over the transition period
and we find that for products where technical barriers are less important
the magnitude of border effects was declining at the end of the 90s.
Journal: Applied Economics
Pages: 1835-1854
Issue: 14
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601044974
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601044974
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Handle: RePEc:taf:applec:v:41:y:2009:i:14:p:1835-1854
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Partridge
Author-X-Name-First: Mark
Author-X-Name-Last: Partridge
Author-Name: Dan Rickman
Author-X-Name-First: Dan
Author-X-Name-Last: Rickman
Title: Canadian regional labour market evolutions: a long-run restrictions SVAR analysis
Abstract:
Canada's high reliance on commodities can work against its
constitutionally mandated goal of regional equity in economic development,
while also inhibiting macroeconomic performance and limiting monetary
policy effectiveness. Yet, flexible and integrated regional labour markets
can help achieve both equity and macroeconomic goals. Therefore, this
study examines the dynamics of Canadian provincial labour markets using a
long-run restrictions structural vector autoregression (SVAR) model.
Labour market fluctuations are decomposed into the parts arising from
shocks to labour demand (new jobs), labour supply through migration (new
people) and internal labour supply (original residents). The results
suggest that demand innovations primarily underlie provincial labour
market fluctuations. Despite significant geographic and language barriers
that could impede their performance, there also is little overall evidence
to suggest that provincial labour markets are more sluggish or less
flexible than US state labour markets. Finally, original residents benefit
slightly more from increased provincial labour demand compared to findings
for US states.
Journal: Applied Economics
Pages: 1855-1871
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131789
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131789
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1855-1871
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Lilla
Author-X-Name-First: Marco
Author-X-Name-Last: Lilla
Author-Name: Stefano Staffolani
Author-X-Name-First: Stefano
Author-X-Name-Last: Staffolani
Title: The evolution of wage inequality in Italy
Abstract:
This article analyses the evolution of inequality in yearly and daily
wages between and within groups of blue and white collar, using the
INPS-ISFOL database for the period 1985 to 1999 in Italy. Between-group
inequality increased in the 1990s as clerical wages grew slowly, whereas
blue collars' wages remained nearly constant. Within-group inequality
increased only if measured by daily wages. The covariance structure
analysis shows that inequality comes from persistent differentials among
older workers and from high income volatility for younger cohorts. Within
inequalities in office and manual workers are driven by the growth of
permanency for the older cohorts (individual abilities, say experience,
matter more) and by the growth of income volatility for the younger
cohorts (luck in the labour market). Within each group, low paid workers
during their career acquire earning gains for their abilities and reduce
differentials with respect to high paid workers.
Journal: Applied Economics
Pages: 1873-1892
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131771
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131771
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1873-1892
Template-Type: ReDIF-Article 1.0
Author-Name: Lee Chin
Author-X-Name-First: Lee
Author-X-Name-Last: Chin
Author-Name: M. Azali
Author-X-Name-First: M.
Author-X-Name-Last: Azali
Author-Name: A. Mansur M. Masih
Author-X-Name-First: A. Mansur M.
Author-X-Name-Last: Masih
Title: Tests of the different variants of the monetary model in a developing economy: Malaysian experience in the pre- and post-crisis periods
Abstract:
This study examines the validity of four different variants of the
monetary model of exchange rate determination for Malaysia covering both
the pre- and post-crisis periods using the vector error-correction models.
The findings demonstrate that for both periods, the variables used are
cointegrated. Tests tend to suggest that of the four variants of monetary
model, the sticky-price model holds in both periods and the flexible-price
model holds only in the post-crisis period. The proportionality between
the exchange rate and relative money does not hold in any period. The
plotted actual and fitted exchange rates for both sub-samples show that
the models are able to track the actual exchange rate trend quiet well.
Journal: Applied Economics
Pages: 1893-1902
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131797
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1893-1902
Template-Type: ReDIF-Article 1.0
Author-Name: I. D. McAvinchey
Author-X-Name-First: I. D.
Author-X-Name-Last: McAvinchey
Author-Name: W. D. McCausland
Author-X-Name-First: W. D.
Author-X-Name-Last: McCausland
Title: European monetary union and the outsiders
Abstract:
This article looks at the impact on a small outside country if a larger,
outsider country were to join a nearby monetary union, exemplified by the
likely effects on Norway of the UK deciding to join the Euro. We construct
a theoretical model to capture such effects, which focuses on the effect
of union on Norway as the small outside state. We then estimate the model
using data from the period 1980-1999 (the period covering the existence of
the ECU and the Euro), and find that there would be substantial
implications for the management of the Norwegian economy in response to
asymmetric shocks and EU fiscal and monetary policy.
Journal: Applied Economics
Pages: 1903-1916
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601137125
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601137125
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1903-1916
Template-Type: ReDIF-Article 1.0
Author-Name: Ofer Azar
Author-X-Name-First: Ofer
Author-X-Name-Last: Azar
Title: Incentives and service quality in the restaurant industry: the tipping-service puzzle
Abstract:
Tipping is a significant economic activity (tips in the US food industry
alone amount to about $42 billion annually) that was claimed to improve
service quality and increase economic efficiency, because it gives
incentives to provide excellent service, and therefore allows to avoid
costly monitoring of workers. The article suggests that this common wisdom
might be wrong. A simple model shows formally that tips can improve
service only if they are sensitive enough to service quality. Empirical
evidence suggests that tips are hardly affected by service quality.
Nevertheless, rankings of service quality by customers are very high; the
co-existence of these two findings is denoted 'the tipping-service
puzzle,' and several possible explanations for it are offered.
Journal: Applied Economics
Pages: 1917-1927
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131813
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1917-1927
Template-Type: ReDIF-Article 1.0
Author-Name: Kwang Woo Park
Author-X-Name-First: Kwang Woo
Author-X-Name-Last: Park
Author-Name: Myeong Hwan Kim
Author-X-Name-First: Myeong Hwan
Author-X-Name-Last: Kim
Title: The industrial relationships in time-varying beta coefficients between Korea and United States
Abstract:
This article examines financial linkage of systematic risks for 20
industry portfolio returns between Korean and US stock markets.
Time-varying beta coefficients of Capital Asset Pricing Model are
estimated and Granger-causality tests are carried out for identifying the
significance of the industrial relations between the two stock markets.
The empirical findings show that the strength and the causality of
international financial linkage vary depending on the types of industry
and the shocks in the systematic risk. Some Korean industries, including
financing industries, iron and metal industries, service, and textile and
wearing industries are relatively vulnerable to systematic risk associate
with US industries.
Journal: Applied Economics
Pages: 1929-1938
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131730
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131730
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1929-1938
Template-Type: ReDIF-Article 1.0
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Author-Name: Ahmad Zubaidi Baharumshah
Author-X-Name-First: Ahmad Zubaidi
Author-X-Name-Last: Baharumshah
Title: Assessing the mean reversion behaviour of fiscal policy: the perspective of Asian countries
Abstract:
This article investigates fiscal policy sustainability in 10 Asian
countries by adopting a battery of unit root tests. Univariate unit root
tests reveal that the fiscal stance in these countries follows a
nonstationary process while the opposite conclusion was drawn for the same
dataset using the commonly employed panel unit root techniques. By
utilizing the series-specific panel unit-root test recently developed by
Breuer et al. [2002, SURADF (Seemingly Unrelated Regression Augmented
Dickey-Fuller)] that allows testing for the presence of nonstationarity
within individual cross sections of the panel, we found that only cross
sections four out of 10 countries in the panel are stationary. This means
that fiscal deficits in most Asian countries are in violation of their
intertemporal budget constraint and that the deficits are too large.
Journal: Applied Economics
Pages: 1939-1949
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131755
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131755
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1939-1949
Template-Type: ReDIF-Article 1.0
Author-Name: An-Sing Chen
Author-X-Name-First: An-Sing
Author-X-Name-Last: Chen
Author-Name: Shih-Chuan Fang
Author-X-Name-First: Shih-Chuan
Author-X-Name-Last: Fang
Title: Uniform testing and portfolio strategies for single and multifactor asset pricing models in the Pacific Basin markets
Abstract:
We test and implement portfolio strategies for three major asset pricing
models, under uniform diagnostic measures using the PACAP data set
containing all current listing and de-listing of firms for the local stock
exchange in several Pacific Basin countries. Compared to the often used
MSCI database that include only a subset of the (large) firms in the local
markets, the more complete coverage of our database allows for more robust
testing of current multifactor asset pricing models since the possible
effects of additional factors such as size and book to market may not show
up correctly using less comprehensive data sets. Our data set also
provides a natural packet of nonUS data for addressing the issue of
whether the results of recent asset pricing research are sample specific.
Our overall results provide multi-country (sample nonspecific) support for
the additional asset pricing risk factors of the Fama-French three-factor
model but not for the momentum factor of the Carhart model. We
additionally find that the size risk factor is more prominent than value
risk factor in the Pacific Basin markets. Finally, we find strong evidence
that portfolio strategies implemented to capture value and size effects
are profitable in the Pacific Basin stock markets.
Journal: Applied Economics
Pages: 1951-1963
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131763
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131763
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1951-1963
Template-Type: ReDIF-Article 1.0
Author-Name: Chin-Tsai Lin
Author-X-Name-First: Chin-Tsai
Author-X-Name-Last: Lin
Author-Name: Hsin-Yi Yeh
Author-X-Name-First: Hsin-Yi
Author-X-Name-Last: Yeh
Title: Empirical of the Taiwan stock index option price forecasting model - applied artificial neural network
Abstract:
This work presents a novel neural network model for forecasting option
prices using past volatilities and other options market factors. Out of
different approaches to estimating volatility in the option pricing model,
this study uses backpropagation neural network to forecast prices for
Taiwanese stock index options. The ability to develop accurate forecasts
of grey prediction volatility enables practitioners to establish an
appropriate hedging strategy at in-the-money option.
Journal: Applied Economics
Pages: 1965-1972
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131672
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131672
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1965-1972
Template-Type: ReDIF-Article 1.0
Author-Name: Darwin Yu
Author-X-Name-First: Darwin
Author-X-Name-Last: Yu
Author-Name: Rodolfo Aquino
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Aquino
Title: Testing capital structure models on Philippine listed firms
Abstract:
This study examines the ability of the Trade-Off (TO) model and the
Pecking Order (PO) model to explain the financing behaviour of Philippine
listed firms from 1990 to 2001. Using panel data regression techniques,
the firms' leverage ratios move towards their optimal level, holding up
the TO model. The results, however, show better support for the PO model,
as leverage and profitability are negatively related, while financing
deficit mostly explains the annual change in total liabilities.
Furthermore, in joint tests, only the fitted values from the PO model
equation continue to have additional explanatory power over fitted values
from the TO model. Firms issued more equity than debt from 1990 to 1996
when stock market prices were increasing rapidly, but this still fits the
more complex version of the PO model.
Journal: Applied Economics
Pages: 1973-1990
Issue: 15
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601131805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601131805
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Handle: RePEc:taf:applec:v:41:y:2009:i:15:p:1973-1990
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of monetary policy: introduction and overview
Abstract:
We introduce and summarize the results of 10 empirical studies that make
up this special theme on monetary policy, covering a wide range of
countries and issues.
Journal: Applied Economics
Pages: 1991-1993
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840903083142
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903083142
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:1991-1993
Template-Type: ReDIF-Article 1.0
Author-Name: David-Jan Jansen
Author-X-Name-First: David-Jan
Author-X-Name-Last: Jansen
Author-Name: Jakob De Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: De Haan
Title: Has ECB communication been helpful in predicting interest rate decisions? An evaluation of the early years of the Economic and Monetary Union
Abstract:
We examine the usefulness of communication by the European Central Bank
for predicting its policy decisions during the early years of the European
Economic and Monetary Union. Using ordered probit models based on the
Taylor rule, we find that statements on the main refinancing rate and
future inflation are significantly related to interest rate decisions. At
the same time, an out-of-sample evaluation shows that communication-based
models do not outperform models based on macroeconomic data in predicting
decisions. Both types of models have difficulty in predicting changes in
the main refinancing rate.
Journal: Applied Economics
Pages: 1995-2003
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802167384
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167384
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:1995-2003
Template-Type: ReDIF-Article 1.0
Author-Name: S. Gazioglu
Author-X-Name-First: S.
Author-X-Name-Last: Gazioglu
Author-Name: W. D. McCausland
Author-X-Name-First: W. D.
Author-X-Name-Last: McCausland
Title: Interest rates and monetary policy
Abstract:
This article conducts a thorough intertemporal analysis of nominal
interest rate based monetary policy. Its main contribution is to show how
such a policy can have different effects depending on the assumptions made
about the saving and borrowing behaviour of firms. We consider two cases:
(i) consumers are savers and firms are borrowers and (ii) both consumers
and firms are borrowers (the nation as a whole is borrowing from abroad).
In one case we confirm conventional wisdom, but in the other case we find
there may be unexpected and surprising results. Moreover, our analysis has
important implications for both inflation and nominal exchange rate
targeting policies.
Journal: Applied Economics
Pages: 2005-2012
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019372
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019372
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2005-2012
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Merkl
Author-X-Name-First: Christian
Author-X-Name-Last: Merkl
Author-Name: Stephanie Stolz
Author-X-Name-First: Stephanie
Author-X-Name-Last: Stolz
Title: Banks' regulatory buffers, liquidity networks and monetary policy transmission
Abstract:
Based on a quarterly regulatory dataset for German banks from 1999 to
2004, this article analyses the effects of banks' regulatory capital on
the transmission of monetary policy in a system of liquidity networks. The
dynamic panel regression results provide evidence in favour of the bank
capital channel theory. Banks holding less regulatory capital and less
interbank liquidity react more restrictively to a monetary tightening than
their peers.
Journal: Applied Economics
Pages: 2013-2024
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802360245
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360245
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2013-2024
Template-Type: ReDIF-Article 1.0
Author-Name: H. Sonmez Atesoglu
Author-X-Name-First: H. Sonmez
Author-X-Name-Last: Atesoglu
Author-Name: Jamie Emerson
Author-X-Name-First: Jamie
Author-X-Name-Last: Emerson
Title: Long-run monetary neutrality
Abstract:
In this article, we provide a test of long-run monetary neutrality
employing cointegration and vector error-correction modelling methodology.
Using quarterly data for the United States, we estimate the long-run
relationships among money supply and output and other key macroeconomic
variables. Our findings, in general, raise doubts about the long-run
monetary neutrality proposition.
Journal: Applied Economics
Pages: 2025-2036
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604479
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604479
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2025-2036
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Paez-Farrell
Author-X-Name-First: Juan
Author-X-Name-Last: Paez-Farrell
Title: Monetary policy rules in theory and in practice: evidence from the UK and the US
Abstract:
Given the large amount of interaction between research on monetary policy
and its practice, this article examines whether some simple monetary
policy rules that have been proposed in the academic literature, part of
which has originated from within central banks, provide a reasonable
characterization of actual policy in the United Kingdom and the United
States. The article finds the simple rule that describes best the actual
US monetary policy is a speed limit rule with dynamics, whilst for the UK
it is a forward-looking rule. The simpler dynamics in the UK's monetary
policy rule are reflective of the lower persistence of inflation as a
result of its policy of inflation targeting.
Journal: Applied Economics
Pages: 2037-2046
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701689496
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701689496
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2037-2046
Template-Type: ReDIF-Article 1.0
Author-Name: Yanchun Zhang
Author-X-Name-First: Yanchun
Author-X-Name-Last: Zhang
Title: The role of monetary shocks and real shocks on the current account, the terms of trade and the real exchange rate dynamics: a SVAR analysis
Abstract:
The article is an empirical investigation of the role of monetary shocks
and real shocks on the current account, the terms of trade and the real
exchange rate dynamics. Three new open economy macro-economics (NOEM)
models are studied to motivate the empirical investigation. Then I apply
the Blanchard-Quah decomposition to identify a SVAR model. The empirical
evidence supports the NOEM model with the simplified household preference
specification and with the small degree of pricing-to-market. The evidence
also illustrates monetary shocks important for the real exchange rate and
the terms of trade movements, but not for the current account
fluctuations.
Journal: Applied Economics
Pages: 2047-2063
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701721034
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721034
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2047-2063
Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Jackson
Author-X-Name-First: Aaron
Author-X-Name-Last: Jackson
Author-Name: William Miles
Author-X-Name-First: William
Author-X-Name-Last: Miles
Title: Quantitative goals for monetary policy: a quantile regression approach
Abstract:
A recent paper by Fatas et al. (2006) indicates that formal monetary
policy targets-exchange rate, money supply or inflation targets-palpably
decrease inflation in a sample of 40 countries. The authors employ various
least squares estimations, which pick up the conditional average effect.
However, there is wide inflation variability in the authors' sample. Thus,
formal targets could have very different effects in high- and low-
inflation countries. Accordingly, we utilize the technique of quantile
regression, a method frequently used in labour economics. We find, in a
sample of low- and moderate-inflation countries, that formal targets exert
no significant impact on low-inflation nations. This result is important
for debates over formal targets, such as whether the United States should
adopt an inflation target. There are costs and benefits in having formal
targets, and finding that targets do not decrease inflation, when it is
already moderate, is an important piece of information to consider.
Journal: Applied Economics
Pages: 2065-2071
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701736123
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736123
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2065-2071
Template-Type: ReDIF-Article 1.0
Author-Name: Tarron Khemraj
Author-X-Name-First: Tarron
Author-X-Name-Last: Khemraj
Title: Excess liquidity and the foreign currency constraint: the case of monetary management in Guyana
Abstract:
This article examines why commercial banks in Guyana demand
nonremunerated excess reserves, a phenomenon that became even more
widespread after financial liberalization. Despite the removal of capital
controls, banks do not invest all excess reserves in a safe foreign asset
because the central bank maintains an unofficial foreign currency
constraint by accumulating international reserves. The findings suggest
that commercial banks do not demand excess reserves for precautionary
purpose-which is the conclusion of several other studies-but rather
because of the maintained constraint. The estimated sterilization
coefficient is consistent with the hypothesis of an enforced constraint.
The results, moreover, suggest an alternative way of looking at the
monetary transmission mechanism in developing countries. The central bank
maintains price and exchange rate stability through the accumulation of
foreign reserves.
Journal: Applied Economics
Pages: 2073-2084
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701857994
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857994
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2073-2084
Template-Type: ReDIF-Article 1.0
Author-Name: Kerim Peren Arin
Author-X-Name-First: Kerim Peren
Author-X-Name-Last: Arin
Author-Name: Timur Han Gur
Author-X-Name-First: Timur Han
Author-X-Name-Last: Gur
Title: Exchange rate versus monetary aggregate targeting: the Turkish case
Abstract:
This article compares and contrasts the macroeconomic effects of exchange
rate targeting and money supply targeting by using quarterly data from
Turkey for the period February 1986-March 2000. The results of the VAR
analysis show that the exchange rate does not have the traditional
'hump-shaped effect' that money supply has on output. In addition, we
observe that an exchange rate depreciation leads to a temporary
improvement in the trade balance for only a year, while monetary
innovations have longer-lasting effects. Those results suggest that
money-based targeting is more appropriate than exchange-rate targeting for
Turkey.
Journal: Applied Economics
Pages: 2085-2092
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601019190
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601019190
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2085-2092
Template-Type: ReDIF-Article 1.0
Author-Name: George Georgopoulos
Author-X-Name-First: George
Author-X-Name-Last: Georgopoulos
Title: Measuring regional effects of monetary policy in Canada
Abstract:
This article measures monetary policy shocks and examines whether the
effects of such shocks have differential regional effects in Canada. We
identify three possible sources of regional effects: differences in the
importance of interest-sensitive industries, differences in the
contribution of exports to output and differences in the proportion of
small relative to large firms. Using the overnight interest rate as the
instrument of monetary policy, we present impulse responses of industry
output from a recursive vector autoregression, which incorporates a
cointegrating relation. The results show that manufacturing and primary
industries are the most interest sensitive. We conduct impulse responses
of provincial employment from a monetary contraction. The results show
that Newfoundland and Prince Edward Island (PEI), primary industry-based
provinces, are strongly and adversely affected by a monetary contraction.
Manitoba, Saskatchewan and Alberta, also primary-based, are also affected.
Ontario, which is manufacturing-based, is also affected but to a lesser
extent. The response of Quebec, New Brunswick, Nova Scotia and British
Columbia are not statistically significant.
Journal: Applied Economics
Pages: 2093-2113
Issue: 16
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604362
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604362
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Handle: RePEc:taf:applec:v:41:y:2009:i:16:p:2093-2113
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Author-Name: M. Ege Yazgan
Author-X-Name-First: M. Ege
Author-X-Name-Last: Yazgan
Title: Effects of credit and debit cards on the currency demand
Abstract:
We analyze the effects of credit and debit cards on the currency in
circulation by using GMM estimation. Instead of using the data obtained by
surveys, we use monthly data obtained by an interbank institution that
keeps the statistics of all credit and debit cards usage of a small open
economy, Turkey, for the period over 2002M1-2006M10. As expected from the
theory, we find that an increase in the usage of credit and debit cards
leads to a decrease in the currency demand. Moreover, the usage of the
debit cards has a bigger effect on the money demand, compared to the usage
of the credit cards. We also find that the effect of credit cards is
mostly through purchases and the effect of debit cards is mostly through
withdrawals
Journal: Applied Economics
Pages: 2115-2123
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222496
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222496
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2115-2123
Template-Type: ReDIF-Article 1.0
Author-Name: W. Allard Bruinshoofd
Author-X-Name-First: W. Allard
Author-X-Name-Last: Bruinshoofd
Author-Name: Clemens Kool
Author-X-Name-First: Clemens
Author-X-Name-Last: Kool
Title: Nonlinear target adjustment in corporate liquidity management: an endogenous thresholds approach
Abstract:
We provide new empirical evidence on nonlinear liquidity management in
Dutch firms. Our results reveal that liquidity adjustment from below the
target is significantly faster than from above. We find no evidence for
bands of inaction around the target.
Journal: Applied Economics
Pages: 2125-2131
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222587
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222587
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2125-2131
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Martins
Author-X-Name-First: Pedro
Author-X-Name-Last: Martins
Title: Rent sharing before and after the wage bill
Abstract:
Many biases plague the analysis of whether employers share rents with
their employees, unlike what is predicted by the competitive labour market
model. Using a Portuguese matched employer-employee panel, this article is
one of the first to address these biases in three complementary ways: (1)
Controlling directly for the fact that firms that share more rents will,
ceteris paribus, have lower net-of-wages profits. (2) Instrumenting
profits via interactions between the exchange rate and the share of
exports in firm's total sales. (3) Considering firm or firm/worker spell
fixed effects and highlighting the role of downward wage rigidity. These
approaches clarify conflicting findings in the literature and result, in
our preferred specifications, in significant evidence of rent sharing (a
Lester range of pay dispersion of 56%), also shown to be robust to a
number of competitive interpretations.
Journal: Applied Economics
Pages: 2133-2151
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701736164
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736164
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2133-2151
Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Marti
Author-X-Name-First: Carmen
Author-X-Name-Last: Marti
Author-Name: Juan Matallin
Author-X-Name-First: Juan
Author-X-Name-Last: Matallin
Author-Name: M Angeles Fernandez
Author-X-Name-First: M Angeles
Author-X-Name-Last: Fernandez
Title: Determinants of pension plan fees in Spain
Abstract:
Pension plans and funds represent a substantial part of the welfare
systems in both Europe and Spain. One of the most important factors in the
choice of a plan or fund is the performance it obtains. In view of the
influence that fees have on performance, the objective of this study is to
analyse the variables that determine the management and custodial fees of
individual pension plans. The Spanish market for pension plans and funds
sets legal caps on these fees, and at the same time the majority of them
are commercialized and managed by financial institutions, which can in
turn generate a conflict of interests. In this article, we estimate models
with censured variables and our findings show how the average investment
per plan, the legal status and the size of the management company to which
the plan belongs, and the style of the plan are all relevant determinants
of the management fee. In turn, the custodial fee is determined by the
legal status of the custodial company, the size, the return and the type
of plan.
Journal: Applied Economics
Pages: 2153-2168
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222462
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222462
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2153-2168
Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Jong-Rong Chen
Author-X-Name-First: Jong-Rong
Author-X-Name-Last: Chen
Title: Market dynamics and dichotomy: evidence from Taiwanese manufacturing
Abstract:
In Taiwan, a dichotomous market structure is closely related to the
progress of economic development. The purpose of the present article is to
examine the market dynamics and dichotomous nature of Taiwanese
manufacturing. A model of dynamic adjustment of industry structure is
considered when both the speed of adjustment and the long-run market
concentration are allowed to vary across industries. We use 118 four-digit
manufacturing industries for empirical analysis of our models spanning
between 1981 and 1991. Empirical findings show that both the speed of
adjustment and long-run industry concentration are predominantly
determined by minimum efficient scale. The speed of adjustment is much
faster in a small open economy like Taiwan compared to mature economies
like the US and Australia. In addition, the dichotomous nature of the
market is supported in our findings for both periods, viz, 1981-1986 and
1986-1991, albeit weaker for the later period.
Journal: Applied Economics
Pages: 2169-2179
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222470
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222470
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2169-2179
Template-Type: ReDIF-Article 1.0
Author-Name: Kang Ernest Liu
Author-X-Name-First: Kang Ernest
Author-X-Name-Last: Liu
Title: A globally flexible, quadratic almost ideal demand system: an application to demand for meats and fish in Taiwan
Abstract:
A new demand system, called a globally flexible, quadratic almost ideal
demand system (GF-QUAIDS), integrates both the quadratic Engel curve and
the Fourier series. This novel GF-QUAIDS model is applied to study the
demand for meats and fish in Taiwan. Empirical results show that the
GF-QUAIDS fits the data well and that, by using the likelihood ratio test,
its nested models are rejected, including the locally flexible functional
form and the linear Engel curve. Nevertheless, other empirical
model-selection measures indicate that the GF-QUAIDS can be as good as its
famous nested models such as the AIDS, QUAIDS and GF-AIDS.
Journal: Applied Economics
Pages: 2181-2189
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335504
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335504
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2181-2189
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Heck
Author-X-Name-First: Jean
Author-X-Name-Last: Heck
Author-Name: Peter Zaleski
Author-X-Name-First: Peter
Author-X-Name-Last: Zaleski
Author-Name: Scott Dressler
Author-X-Name-First: Scott
Author-X-Name-Last: Dressler
Title: Leading institutional contributors to the elite economic journals
Abstract:
Given the prestige enjoyed by several economic departments, there is a
natural curiosity regarding their contributions to the economic
literature. This article, analyses the appearance of all academic
institutions worldwide in the eight leading economic journals, the 'Blue
Ribbon Eight,' from 1991 to 2005. We cite those institutions who appear
the most, and analyse the composition of appearances across all eight
journals to assess their degree of diversity. While it is tempting to use
these measures as a ranking of institutions, the analysis is meant to be
purely an historical appreciation of the contributions of these admirable
institutions.
Journal: Applied Economics
Pages: 2191-2196
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701206598
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701206598
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2191-2196
Template-Type: ReDIF-Article 1.0
Author-Name: Felipa de Mello-Sampayo
Author-X-Name-First: Felipa
Author-X-Name-Last: de Mello-Sampayo
Title: Competing-destinations gravity model: an application to the geographic distribution of FDI
Abstract:
The competing-destinations formulation of the gravity model ensues from
the fact that unlike the classical version, this approach explicitly
acknowledges the interdependence of the flows between a set of alternative
locations, i.e. country-recipients are competing for Foreign Direct
Investment (FDI). This article examines empirically a range of theoretical
hypotheses about the determinants of FDI location in a panel data
regression framework. The results of the estimation of a gravity model
lend support to the proximity-concentration and internalization
hypotheses. Also, the fact that FDI has been found to be decreasing in the
competition posed by alternative locations is suggestive of the
superiority of the competing-destinations version of the gravity equation
over its classical formulation.
Journal: Applied Economics
Pages: 2237-2253
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701765346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765346
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2237-2253
Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Benfratello
Author-X-Name-First: Luigi
Author-X-Name-Last: Benfratello
Author-Name: Massimiliano Piacenza
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Piacenza
Author-Name: Stefano Sacchetto
Author-X-Name-First: Stefano
Author-X-Name-Last: Sacchetto
Title: Taste or reputation: what drives market prices in the wine industry? Estimation of a hedonic model for Italian premium wines
Abstract:
The aim of this article is to provide new evidence on the factors
affecting wine prices on both methodological and factual grounds. On the
methodological ground, this study is the first to apply a general Box-Cox
transformation within the context of hedonic models which exploit all the
variables (objective and sensorial characteristics, reputation) pointed
out by previous literature as relevant in driving market prices. On the
factual ground, the article fills the lack of empirical evidence on the
issue for Italy, one of the leading wine producers, by using a large data
set on two premium quality wines (Barolo and Barbaresco) covering the
1995-1998 vintages. Our results support the evidence obtained using data
from other countries, showing that sensorial traits, the reputation of
wines and producers, as well as objective variables are all important
factors influencing the consumers' willingness to pay. More importantly,
by resorting to a nonnested statistical test (Vuong, 1989) we compare two
alternative specifications (taste vs. reputation) and find that the
reputation model significantly outperforms the taste one, whereby
suggesting that a greater amount of information on how the wine price is
formed is contained in the reputation specification.
Journal: Applied Economics
Pages: 2197-2209
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222439
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222439
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2197-2209
Template-Type: ReDIF-Article 1.0
Author-Name: Bethany Peters
Author-X-Name-First: Bethany
Author-X-Name-Last: Peters
Title: The drinkers' bonus in the military: officers versus enlisted personnel
Abstract:
Applied Economics published the first article reporting the findings of
drinkers earning more than nondrinkers in 1988. The positive correlation
between drinking and higher wages has existed in the economics literature
on alcohol consumption for almost two decades. However, a clear
explanation for this finding is only beginning to emerge. I use data on
male military personnel from the 1985 Worldwide Survey of Alcohol and
Nonmedical Drug Use Among Military Personnel to explore a theory of social
capital. Specifically, one way individuals can invest in social capital is
through drinking in certain settings. Abstainers miss out on opportunities
to increase their social capital stock because they forego social
interaction that could result in promotion. Some evidence comes from
exploring the wage bonus for Officers versus Enlisted. I find the effect
of different drinking levels on wages varies with station in the military.
Officers who drink between two and 38 drinks per week earn between 2 and
8% more than Officers who abstain. Alternatively, enlisted personnel gain
a much smaller bonus from drinking, which is consistent with the ways in
which the military differs on Officers and Enlisted promotions, thus
supporting evidence for social capital as a wage-enhancing drinking
mechanism.
Journal: Applied Economics
Pages: 2211-2220
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222447
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222447
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2211-2220
Template-Type: ReDIF-Article 1.0
Author-Name: R. Barıs Tekin
Author-X-Name-First: R. Barıs
Author-X-Name-Last: Tekin
Author-Name: M. Ege Yazgan
Author-X-Name-First: M. Ege
Author-X-Name-Last: Yazgan
Title: Exchange rate pass-through in Turkish export and import prices
Abstract:
This article examines exchange rate pass-through into prices of
internationally traded goods in the case of a small emerging open market
economy such as Turkey. In this study, we provide empirical evidence on
complete pass-through in export prices in Turkey using aggregate data on
the manufacturing sector. Our data do not however support complete
pass-through in import prices in Turkey. This contradicts with the
findings of the existent literature, which typically concludes that the
degree of pass-through in import prices is higher than the one of export
prices. This can be interpreted as a result of competition between import
and import substituting industries where importers fall short of competing
successfully with import substituting sectors. Although Turkish importers
can be responsive to exchange rate changes to a certain degree in the
short-run, in the long-run, they seem to lose their market power perhaps
as a result of swift competition. A complete exchange rate pass-through to
export prices in Turkey implies that the Turkish manufacturing export
sector has the competitive strength to transmit exchange rate movements
into their prices.
Journal: Applied Economics
Pages: 2221-2228
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222454
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2221-2228
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Fehder
Author-X-Name-First: Daniel
Author-X-Name-Last: Fehder
Author-Name: Edward Nelling
Author-X-Name-First: Edward
Author-X-Name-Last: Nelling
Author-Name: Jeffrey Trester
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Trester
Title: Innovation and price: the case of digital cameras
Abstract:
This study examines a hedonic regression model of digital camera prices
using data collected from an internet price comparison service. We find
that a small number of product characteristics explains most of the
variation in camera prices. In addition, the model demonstrates
substantial downward pressure on camera prices during the time period
considered. We also examine technological innovation shocks to determine
their impact on product prices. We find that the corresponding price
reaction exhibits gradual adjustment over time, providing evidence of some
degree of anticipation of the innovation, as well as a post-innovation
price shock. This study also demonstrates the power of web-based shopping
services as a new and novel source of data for econometric analysis.
Journal: Applied Economics
Pages: 2229-2236
Issue: 17
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222488
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222488
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Handle: RePEc:taf:applec:v:41:y:2009:i:17:p:2229-2236
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Connelly
Author-X-Name-First: Richard
Author-X-Name-Last: Connelly
Author-Name: Rajeev Goel
Author-X-Name-First: Rajeev
Author-X-Name-Last: Goel
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: Demand for cigarettes in the United States: effects of prices in bordering states and contiguity with Mexico and Canada
Abstract:
Based on a cross-section of US states for 2004, this article estimates a
demand function for cigarettes after including a proxy for prices in the
bordering states and simple proxies for contiguity with Mexico and Canada
and for being a major tobacco producer. One major point seems to be that
the negative elasticity for within-state price is similar in magnitude to
the positive elasticity for the (lowest) price in bordering states.
Several additional points also seem noteworthy. First, having a border
with Mexico lowers sales in the state sizably. Second, the share of
Hispanic/Latino population in the state also lowers sales significantly.
Third, contiguity with Canada appears to have no significant effect.
Fourth, partial impact of the state being a major tobacco producer appears
minor even though consumption in these states is considerably higher.
Fifth, education shows the expected negative association with cigarette
consumption, but its statistical significance is low. Last, income carries
a weak negative parameter, perhaps reflecting the lower prevalence of
smoking in higher-income households.
Journal: Applied Economics
Pages: 2255-2260
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222637
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222637
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2255-2260
Template-Type: ReDIF-Article 1.0
Author-Name: Marina Della Giusta
Author-X-Name-First: Marina
Author-X-Name-Last: Della Giusta
Author-Name: Maria Laura Di Tommaso
Author-X-Name-First: Maria Laura
Author-X-Name-Last: Di Tommaso
Author-Name: Isilda Shima
Author-X-Name-First: Isilda
Author-X-Name-Last: Shima
Author-Name: Steinar Strøm
Author-X-Name-First: Steinar
Author-X-Name-Last: Strøm
Title: What money buys: clients of street sex workers in the US
Abstract:
The article presents a review of current theoretical and empirical
approaches to sex work, followed by the presentation of an original
theoretical framework (Della Giusta et al., 2006), which is tested with an
econometric model of the characteristics of demand for sex services by a
sample of clients of street sex workers in the US. We present findings in
relation to stigma and the relationship between paid and unpaid sex that
corroborate our model's hypotheses and are in line with findings from
other empirical studies. Furthermore, we identify in our sample two
diametrically opposite profiles: one for clients whom we label
'experimenters', and one for more experienced ones that we name
'regulars', we also estimate attitudes toward risk, and draw implications
in terms of both policy and future theoretical and empirical research.
Journal: Applied Economics
Pages: 2261-2277
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222561
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222561
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2261-2277
Template-Type: ReDIF-Article 1.0
Author-Name: Judith Clarke
Author-X-Name-First: Judith
Author-X-Name-Last: Clarke
Author-Name: Nilanjana Roy
Author-X-Name-First: Nilanjana
Author-X-Name-Last: Roy
Author-Name: Marsha Courchane
Author-X-Name-First: Marsha
Author-X-Name-Last: Courchane
Title: On the robustness of racial discrimination findings in mortgage lending studies
Abstract:
That mortgage lenders have complex underwriting standards, often
differing legitimately from one lender to another, implies that any
statistical model estimated to approximate these standards, for use in
fair lending determinations, must be misspecified. Exploration of the
sensitivity of disparate treatment findings from such statistical models
is, thus, imperative. We contribute to this goal. This article examines
whether the conclusions from several bank-specific studies, undertaken by
the Office of the Comptroller of the Currency, are robust to changes in
the link function adopted to model the probability of loan approval and to
the approach used to approximate the finite sample null distribution for
the disparate treatment hypothesis test. Our evidence, of discrimination
findings that are reasonably robust to the range of examined link
functions, suggests that regulators and researchers can be reasonably
comfortable with their current use of the logit link. Based on several
features of our results, we advocate regular use of a resampling method to
determine p-values.
Journal: Applied Economics
Pages: 2279-2297
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222579
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222579
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2279-2297
Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Author-Name: Henrique Cesar Tupper
Author-X-Name-First: Henrique Cesar
Author-X-Name-Last: Tupper
Title: Service quality in Brazilian mobile telephony: an efficiency frontier analysis
Abstract:
The mobile telephony sector is characterized by the dynamic interplay of
rapid changes in technology and an apparently growing competition, as
indicated by the fierce nonprice competition, and is yet associated with
the entry of new operating companies in some cases. In this context, a
relevant and neglected issue is the assessment of how service quality
responded to an increasingly competitive environment. This study utilizes
data envelopment analysis to assess the quality efficiency of mobile
telephony companies in Brazil during the 2000-2003 period. Window analysis
was conducted for the entire period, taking as reference different quality
indicators pertaining to different forms of complaints and calls completed
and interrupted. The efficiency measurement was made feasible by
interpreting the indicators reflecting a positive dimension of quality as
outputs and those reflecting negative aspects of quality as inputs. Given
potential heterogeneities across firms that relate to the frequency band
and to the technology (time division multiple access technology and code
division multiple access technology among others), this article considered
adjusted efficiency scores. The Tobit model for censored data was
estimated to control for the aforementioned aspects. Rescaled residuals
from the econometric estimation produced efficiency scores for service
quality. The evidence indicated an overall improvement in efficiency over
time. Nonparametric tests were consistent with a positive evolution of
quality over time even for shorter subperiods.
Journal: Applied Economics
Pages: 2299-2307
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222595
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222595
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2299-2307
Template-Type: ReDIF-Article 1.0
Author-Name: Marianna Brunetti
Author-X-Name-First: Marianna
Author-X-Name-Last: Brunetti
Author-Name: Costanza Torricelli
Author-X-Name-First: Costanza
Author-X-Name-Last: Torricelli
Title: Economic activity and recession probabilities: information content and predictive power of the term spread in Italy
Abstract:
The aim of the present article is to examine the information content of
the Italian term spread as for real economic growth rates and recession
probabilities and to test its predictive power in forecasting regime
probabilities. To this end the relationship between the term spread and
economic growth rates is modelled as a nonlinear one and specifically the
Logistic Smooth Transition model is used, while a probit model is
implemented to forecast recession probabilities. Specific to this article
is the use of the OECD business cycle chronology, which was never used
before to this end for the Italian case. Overall evidence supports the
informative content of the spread in Italy over the whole period
(1984-2005) although results are more satisfactory as from 1992. In
particular, recession forecasts are generally better than those obtained
with other chronologies previously adopted for the Italian case (ISAE and
ECRI).
Journal: Applied Economics
Pages: 2309-2322
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222512
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222512
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2309-2322
Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Serra
Author-X-Name-First: Teresa
Author-X-Name-Last: Serra
Author-Name: David Zilberman
Author-X-Name-First: David
Author-X-Name-Last: Zilberman
Author-Name: Jose Gil
Author-X-Name-First: Jose
Author-X-Name-Last: Gil
Author-Name: Allen Featherstone
Author-X-Name-First: Allen
Author-X-Name-Last: Featherstone
Title: The effects of decoupling on land allocation
Abstract:
The purpose of this article is to study the impact of agricultural policy
decoupling on land allocation decisions. Our analysis contributes to the
literature by formally assessing the effects of decoupling on farms' crop
mix and on the decision to set land aside. The analysis is undertaken
within the framework of the model of production under uncertainty
developed by Just and Zilberman (1986). Our empirical application focuses
on a sample of Kansas farms observed from 1998 to 2001. Results show that
US agricultural policy decoupling has resulted in a shift in land use away
from program crops towards nonprogram commodities offering higher expected
profits and idle land.
Journal: Applied Economics
Pages: 2323-2333
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222520
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222520
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2323-2333
Template-Type: ReDIF-Article 1.0
Author-Name: David Bivin
Author-X-Name-First: David
Author-X-Name-Last: Bivin
Author-Name: Brad Humphreys
Author-X-Name-First: Brad
Author-X-Name-Last: Humphreys
Title: Accounting for output fluctuations in manufacturing
Abstract:
There is a substantial body of evidence to the effect that output is more
volatile than sales among manufacturing industries. Numerous explanations
have been advanced to account for this excess output volatility. Some
examples are pro-cyclical inventory movements induced by a
stockout-avoidance motive, cost and technology shocks and decreasing
marginal costs. This article assesses the contribution of these different
motives to output volatility for six different manufacturing industries.
Linear-quadratic models are estimated for each of the industries and then
dynamic simulations are employed to determine the volatility of output
when one or more of the factors are removed from the model. Technology
shocks provide the most significant contribution to output volatility. The
stockout-avoidance motive is also important. Cost shocks provide a very
small contribution and marginal production costs are increasing at the
margin and thus stabilize output. It is also shown that output volatility
declines when current values of sales and material costs are assumed known
rather than forecasted from prior periods' values.
Journal: Applied Economics
Pages: 2335-2352
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222538
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222538
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2335-2352
Template-Type: ReDIF-Article 1.0
Author-Name: Catarina Figueira
Author-X-Name-First: Catarina
Author-X-Name-Last: Figueira
Author-Name: Joseph Nellis
Author-X-Name-First: Joseph
Author-X-Name-Last: Nellis
Author-Name: David Parker
Author-X-Name-First: David
Author-X-Name-Last: Parker
Title: The effects of ownership on bank efficiency in Latin America
Abstract:
In recent years many countries have privatised their state-owned banks
and encouraged foreign investment. This article investigates the roles of
state and private ownership and foreign and domestic ownership on the
performance of banks across Latin America. Using a range of financial and
economic ratios, data envelopment analysis (DEA) and regression modelling,
the study reveals that by 2001 there was surprisingly little difference in
performance between state-owned and privately-owned banks and between
foreign and domestically-owned banks. The study also reports significantly
different levels of bank performance in different Latin American
countries, suggesting that country differences outweighed ownership
differences in explaining performance.
Journal: Applied Economics
Pages: 2353-2368
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222546
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222546
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2353-2368
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Guillaume Meon
Author-X-Name-First: Pierre-Guillaume
Author-X-Name-Last: Meon
Title: Voting and turning out for monetary integration: the case of the French referendum on the Maastricht treaty
Abstract:
This article analyses the voting and abstention patterns in French
departments in the 1992 referendum on the Maastricht treaty, in light of
the potential impact of monetary union. We observe that departmental
characteristics implying either greater benefits or lower costs from
monetary union are significantly correlated with the approval rate. This
supports the view that the voting behaviour of individual agents depended
on their self-interest. The impact of economic characteristics on the
abstention rate is less clear. Indeed, the variable that is most
significantly correlated with abstention in the referendum is average
abstention in other elections.
Journal: Applied Economics
Pages: 2369-2384
Issue: 18
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222504
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222504
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Handle: RePEc:taf:applec:v:41:y:2009:i:18:p:2369-2384
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of employment: introduction and overview
Abstract:
We provide an introduction and overview to the 10 applied studies making
up this themed issue on employment. The studies cover a wide range of
national and regional experience and employ a variety of applied
techniques.
Journal: Applied Economics
Pages: 2385-2387
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840903119342
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903119342
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2385-2387
Template-Type: ReDIF-Article 1.0
Author-Name: Horst Feldmann
Author-X-Name-First: Horst
Author-X-Name-Last: Feldmann
Title: The effects of hiring and firing regulation on unemployment and employment: evidence based on survey data
Abstract:
We use the results of surveys among senior business executives to measure
the strictness of hiring and firing regulations. The survey data are more
likely than objective indicators (used in almost all previous studies) to
correctly capture the de facto strictness of these regulations and their
relevance to the performance of the labour market. Using data from 19
industrial countries for the period 1992 to 2002, we find that more
flexible regulations are likely to lower unemployment and to increase
employment rates. While the effects on the general population appear to be
modest, the effects on female, young and low-skilled workers seem to be
substantial.
Journal: Applied Economics
Pages: 2389-2401
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701736131
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736131
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2389-2401
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Collender
Author-X-Name-First: Robert
Author-X-Name-Last: Collender
Author-Name: Sherrill Shaffer
Author-X-Name-First: Sherrill
Author-X-Name-Last: Shaffer
Title: Banking structure and employment growth
Abstract:
Recent studies have documented an association between financial structure
and per capita income growth. The relationship between financial structure
and job growth, by contrast, is an unexplored issue of independent
interest. Here we find that US nonmetropolitan employment grew faster in
1973-1996 where there were fewer locally owned bank offices and a more
concentrated initial banking market structure; these linkages were less
stable in metropolitan areas. In addition, controlling for employment
growth does not undermine the empirical linkage between initial bank
structure and subsequent per capita income growth.
Journal: Applied Economics
Pages: 2403-2417
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840801998607
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801998607
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2403-2417
Template-Type: ReDIF-Article 1.0
Author-Name: Per Engstrom
Author-X-Name-First: Per
Author-X-Name-Last: Engstrom
Author-Name: Bertil Holmlund
Author-X-Name-First: Bertil
Author-X-Name-Last: Holmlund
Title: Tax evasion and self-employment in a high-tax country: evidence from Sweden
Abstract:
Self-employed individuals have arguably greater opportunities than wage
earners to underreport their incomes. This article uses recent Swedish
income and expenditure data to examine the extent of underreporting of
income among self-employed individuals. A key hypothesis is that
underreporting of incomes among the self-employed would be visible in the
data as 'excess food consumption', for a given level of observed income.
Our results confirm the underreporting hypothesis. In particular, we
estimate that households with at least one self-employed member
underreport their total incomes by around 30%. Under-reporting appears to
be much more prevalent among self-employed people with unincorporated
businesses as among those with incorporated businesses.
Journal: Applied Economics
Pages: 2419-2430
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701765452
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765452
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2419-2430
Template-Type: ReDIF-Article 1.0
Author-Name: Yao-Tung Chen
Author-X-Name-First: Yao-Tung
Author-X-Name-Last: Chen
Title: Market integration between developing countries and urban unemployment-the perspective of the real minimum wage
Abstract:
This article examines the effect of market integration through free trade
and factor mobility on the urban unemployment rate of a developing country
whose economy is large enough to influence the terms of trade. From the
perspective of the real minimum wage, it is shown that free trade would
result in a rise or a decline in the country's urban unemployment rate,
depending on its trade pattern. While the effect of labour mobility on a
country's urban unemployment rate is determined by the difference between
the ratio of would-be farmers to incoming workers and that of farm leavers
to outgoing workers, the result of capital mobility will depend on a
comparison of the initial urban unemployment rates of two countries.
Journal: Applied Economics
Pages: 2431-2447
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840801964740
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964740
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2431-2447
Template-Type: ReDIF-Article 1.0
Author-Name: Mika Haapanen
Author-X-Name-First: Mika
Author-X-Name-Last: Haapanen
Author-Name: Hannu Tervo
Author-X-Name-First: Hannu
Author-X-Name-Last: Tervo
Title: Self-employment duration in urban and rural locations
Abstract:
Previous research has shown that the local environment is important for
self-employment. The dynamics of self-employment varies between areas
characterized by different labour market conditions, entrepreneurial
traditions and other structural factors. This article analyses
self-employment spells in Finland with a large register-based data set
from the period 1987 to 2002. The main aim is to investigate the role of
region-specific factors as compared with individual-specific and other
factors on the duration of self-employment spells. First, the descriptive
analysis shows that the exit rates from self-employment and the length of
self-employment spells depend upon location (urban versus rural area) and
the cyclical trends in the economy. Second, self-employment duration is
modelled using discrete time survival analysis. It is found that rural
areas have significantly lower exit rates in the first years of
self-employment than urban areas.
Journal: Applied Economics
Pages: 2449-2461
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802360278
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360278
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2449-2461
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Shannon
Author-X-Name-First: Michael
Author-X-Name-Last: Shannon
Title: Canadian lone mother employment rates, policy change and the US welfare reform literature
Abstract:
The article examines the rise in Canadian lone mother employment rates
during the 1990s using data from the Canadian Labour Force Survey and
methods borrowed from the United States welfare reform literature.
Patterns of lone mother employment rate increases in Canada are found to
be similar to those in the United States. Income support policies in both
countries changed in similar directions and in both cases increased the
incentive to work. Despite these parallel changes it appears that, unlike
the United States, policy reforms account for only a small part of the
rise in Canadian lone mother employment rates.
Journal: Applied Economics
Pages: 2463-2481
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802360294
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360294
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2463-2481
Template-Type: ReDIF-Article 1.0
Author-Name: B. Candelon
Author-X-Name-First: B.
Author-X-Name-Last: Candelon
Author-Name: A. Dupuy
Author-X-Name-First: A.
Author-X-Name-Last: Dupuy
Author-Name: L. Gil-Alana
Author-X-Name-First: L.
Author-X-Name-Last: Gil-Alana
Title: The nature of occupational unemployment rates in the United States: hysteresis or structural?
Abstract:
This article provides new evidence on the nature of occupational
differences in unemployment dynamics, which is relevant for the debate
between the structural or hysteresis hypotheses. We develop a procedure
that permits us to test for the presence of a structural break at unknown
date. Our approach allows the investigation of a broader range of
persistence than the 0/1 paradigm about the order of integration, usually
implemented for testing the hypothesis of hysteresis in occupational
unemployment. In almost all occupations, we find support for both the
structuralist and the hysteresis hypotheses, but stress the importance of
estimating the degree of persistence of seasonal shocks along with the
degree of long-run persistence on raw data without applying seasonal
filters. Indeed hysteresis appears to be underestimated when data are
initially adjusted using traditional seasonal filters.
Journal: Applied Economics
Pages: 2483-2493
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802584950
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584950
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2483-2493
Template-Type: ReDIF-Article 1.0
Author-Name: Andy Chung
Author-X-Name-First: Andy
Author-X-Name-Last: Chung
Title: Gender difference in suicide, household production and unemployment
Abstract:
This article aims to explain why men's suicide rate is generally higher
than women's and why the former tends to fluctuate with unemployment.
Adopting Hamermesh and Soss's suicide model (1974), with a two-period
household production model, I argue that (1) the gender gap in suicide
rate increases with the unemployment rate, because unemployed men suffer a
larger 'human capital loss', due to the division of labour within their
household and (2) men's suicide rate is generally higher than women's
because of the shorter expected life of the former. Both international and
US evidences support this hypothesis.
Journal: Applied Economics
Pages: 2495-2504
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802599446
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599446
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2495-2504
Template-Type: ReDIF-Article 1.0
Author-Name: Shu-hen Chiang
Author-X-Name-First: Shu-hen
Author-X-Name-Last: Chiang
Title: The effects of regional diversity on national unemployment through inter-regional migration: new evidence from Taiwan
Abstract:
The relationship between diversity and unemployment has long been an
important issue for regional scientists. This article applies quarterly
data for four regions in Taiwan during the 1981-2004 period and the
empirical results indicate that regional diversity can reduce the national
unemployment rate, and this is solid support for the hypothesis of
inter-regional migration. To further evaluate this, the interactions among
regional unemployment rates are tested using the seemingly unrelated
regression estimation approach, where the negative correlations of the
regional residuals show that inter-regional migration is indeed an
important common factor among regions. An isolated regional labour market
with the highest unemployment rate in Taiwan re-confirms that
inter-regional migration plays a critical role in lowering national
unemployment. In sum, regional diversity can induce migration, which then
reduces national unemployment.
Journal: Applied Economics
Pages: 2505-2511
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701736149
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736149
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2505-2511
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Rute Cardoso
Author-X-Name-First: Ana Rute
Author-X-Name-Last: Cardoso
Author-Name: Priscila Ferreira
Author-X-Name-First: Priscila
Author-X-Name-Last: Ferreira
Title: The dynamics of job creation and destruction for university graduates: why a rising unemployment rate can be misleading
Abstract:
A large matched employer-employee data set on the Portuguese economy is
used to analyse gross job creation and job destruction for university
graduates, compared to other groups of workers. Standard measures of gross
job flows are computed, and variance decomposition is used to check
whether idiosyncratic shocks or aggregate and sectoral shocks can account
for the time variation in gross job flows, for schooling groups
separately. Results indicate that the market for university graduates has
expanded much more than that for undergraduates, and that idiosyncratic
shocks are more relevant driving job flows for university graduates than
for nongraduates. No support is therefore found for the pessimistic view
that states that the expansion of higher education may have gone too far.
Journal: Applied Economics
Pages: 2513-2521
Issue: 19
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802293339
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802293339
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Handle: RePEc:taf:applec:v:41:y:2009:i:19:p:2513-2521
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Ali Kutan
Author-X-Name-First: Ali
Author-X-Name-Last: Kutan
Title: The J-curve in the emerging economies of Eastern Europe
Abstract:
Devaluation or depreciation of a currency worsens the trade balance
before improving it, resulting in a J-curve pattern. A new definition of
the hypothesis implies a short-run deterioration combined with the
long-run improvement. By using monthly data over the January 1990-June
2005 period from 11 east European emerging economies, most of which are
the new European Union (EU) members or the EU candidate countries, this
article uses the bounds testing approach to cointegration and
error-correction modelling and finds empirical support for the J-curve
hypothesis in three countries of Bulgaria, Croatia and Russia. The results
have important implications for policymakers involved in economics in
terms of using exchange rate policy as a policy device to achieve real
convergence toward EU standards.
Journal: Applied Economics
Pages: 2523-2532
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701235696
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701235696
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2523-2532
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Bastida
Author-X-Name-First: Elena
Author-X-Name-Last: Bastida
Author-Name: Gokce Soydemir
Author-X-Name-First: Gokce
Author-X-Name-Last: Soydemir
Title: Obesity and employment as predictors of diabetes in Mexican Americans: findings from a longitudinal study
Abstract:
This article examines changes in weight loss and employment on the
incidence and management of diabetes over an eight-year period. Using data
from three panel waves of the Border Epidemiologic Study on Aging,
collected between 1995 and 2003, estimation results from a set of logit
regression models reveal that obese individuals, who lose weight over an
eight-year period, are less likely to be diagnosed with diabetes than
those who remain obese in waves two and three. Moreover, employment, an
important covariate in all three waves, is associated with the lower
likelihood of being diagnosed with diabetes. In all, results confirm
findings from cross-sectional data that point to overweight and obesity as
important predictors of diabetes and further support public policy efforts
that aim at controlling the rising incidence of diabetes through tailored
interventions.
Journal: Applied Economics
Pages: 2533-2540
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335629
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335629
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2533-2540
Template-Type: ReDIF-Article 1.0
Author-Name: C. Veeramani
Author-X-Name-First: C.
Author-X-Name-Last: Veeramani
Title: Trade barriers, multinational involvement and intra-industry trade: panel data evidence from India
Abstract:
The article analyses the effects of trade barriers and multinationals on
the intensity of intra-industry trade (IIT) in a panel of Indian
manufacturing industries from 1988 to 1999. We find that the intensity of
IIT increases with the reduction of trade barriers. This is expected as
greater competition from imports leads individual plants in the domestic
industry to specialize in the manufacturing of unique varieties. The
analysis suggests that horizontal (market seeking) multinational
activities in the domestic industries exert a negative influence on IIT.
This is consistent with the view that horizontal multinationals displace
exports to the host country. At the same time, our results indicate that
IIT will be stimulated to the extent that the entry of multinationals
induces intra-industry specialization. We also analyse the role of product
differentiation and plant level scale economies in determining IIT.
Journal: Applied Economics
Pages: 2541-2553
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701235688
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701235688
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2541-2553
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Growitsch
Author-X-Name-First: Christian
Author-X-Name-Last: Growitsch
Author-Name: Tooraj Jamasb
Author-X-Name-First: Tooraj
Author-X-Name-Last: Jamasb
Author-Name: Michael Pollitt
Author-X-Name-First: Michael
Author-X-Name-Last: Pollitt
Title: Quality of service, efficiency and scale in network industries: an analysis of European electricity distribution
Abstract:
Quality of service (QoS) is of major economic significance in natural
monopoly infrastructure industries. In this article, we present an
efficiency analysis of electricity distribution networks from seven
European countries. We apply the stochastic frontier analysis method to
multi-output translog input distance function models to estimate cost
efficiency and scale economies. We show that introducing the quality
dimension into the analysis affects estimated efficiency significantly,
especially that smaller utilities' efficiency seems to decrease. Our
results emphasize that QoS should be an integrated part of efficiency and
economic analysis of regulated natural monopolies.
Journal: Applied Economics
Pages: 2555-2570
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701262872
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701262872
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2555-2570
Template-Type: ReDIF-Article 1.0
Author-Name: David Matesanz
Author-X-Name-First: David
Author-X-Name-Last: Matesanz
Author-Name: Guadalupe Fugarolas
Author-X-Name-First: Guadalupe
Author-X-Name-Last: Fugarolas
Title: Exchange rate policy and trade balance: a cointegration analysis of the Argentine experience since 1962
Abstract:
Using multivariate cointegration tests for nonstationary data and vector
error correction models, this article examines the determinants of trade
balance (TB) for Argentina over the last forty to fifty years taking into
account that the short-run impacts of currency depreciation on the TB
behaviour may differ from the long-run effects. Our investigation confirms
the existence of long-run relationships among TB, real exchange rate (RER)
and foreign and domestic incomes for Argentina during different RER
management policies. Based on the estimations, the Marshall-Lerner
condition is checked and, by means of impulse response functions, we trace
the effect of a one-time shock to the RER on the TB not finding support
for a J-curve pattern in the short-run.
Journal: Applied Economics
Pages: 2571-2582
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222660
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222660
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2571-2582
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arranz
Author-X-Name-First: Jose
Author-X-Name-Last: Arranz
Author-Name: Ana Gil
Author-X-Name-First: Ana
Author-X-Name-Last: Gil
Title: Traffic accidents, deaths and alcohol consumption
Abstract:
The main goal of this article is to analyse the relationship existing
among prices of alcoholic beverages, alcohol consumption and traffic
fatalities for the Spanish Autonomous Communities during the time interval
1998 to 2002. Among the main results, we highlight a positive correlation
between alcohol consumption and traffic mortality rate. Basically,
governments implement two kinds of policies to reduce the traffic
mortality rate. One is oriented to control the supply of alcohol by
increasing alcohol taxes. The other is oriented to preserve traffic
security, increasing the number of sanctions for traffic rule infraction.
We find evidence that both policies exert a positive influence in the
reduction of traffic fatalities. There is no empirical evidence to
indicate that being a novice driver increases the tendency to be involved
in a mortal traffic accident.
Journal: Applied Economics
Pages: 2583-2595
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222652
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222652
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2583-2595
Template-Type: ReDIF-Article 1.0
Author-Name: A. Ozlem Onder
Author-X-Name-First: A. Ozlem
Author-X-Name-Last: Onder
Title: The stability of the Turkish Phillips curve and alternative regime shifting models
Abstract:
This article, presents empirical evidence supporting instability of the
Phillips curve in Turkey. We employ the multiple structural break models
and the Markov-switching models and then evaluate the performance of the
two models. The data pertain to the monthly inflation rate in Turkey for
the period of 1987 to 2004. The results show that the Turkish Phillips
curve is not linear. There exists no evidence on the asymmetry in the
inflation response to output gap. The persistence of inflation is found to
be much lower than in linear models. After 2001, slight decline in
persistence of inflation is observed. There exits weaker support for the
Phillips curve for the periods where the policymakers attempt to take the
advantage of the tradeoff between output and inflation relationship.
Journal: Applied Economics
Pages: 2597-2604
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222645
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222645
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2597-2604
Template-Type: ReDIF-Article 1.0
Author-Name: Kyojik Song
Author-X-Name-First: Kyojik
Author-X-Name-Last: Song
Title: Does debt market timing increase firm value?
Abstract:
Survey evidence indicates that firm managers try to time debt markets
when choosing the maturity of new debt issues, but we do not know whether
these strategies increase firm value. This research examines differences
in value across nontimers and timers, where timers are defined as firms
that follow either a naive strategy of choosing long-term debt when the
term premium is low or a strategy from Baker et al. (2003) based on the
predictability of future excess bond returns. After controlling for
various determinants of firm value, the research finds no differences in
value across timers and nontimers. It also documents that the timing
strategies do not increase firm value and do not affect announcement
effects of long-term debt offerings. The results suggest that corporate
debt markets are efficient and well integrated with equity markets.
Journal: Applied Economics
Pages: 2605-2617
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222629
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222629
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2605-2617
Template-Type: ReDIF-Article 1.0
Author-Name: E. Ulas Mısırlı
Author-X-Name-First: E.
Author-X-Name-Last: Ulas Mısırlı
Author-Name: C. Emre Alper
Author-X-Name-First: C.
Author-X-Name-Last: Emre Alper
Title: Drivers of expected returns in Istanbul stock exchange: Fama-French factors and coskewness
Abstract:
We investigate the impact of coskewness on the variation of portfolio
excess returns in Istanbul Stock Exchange (ISE) over the period July 1999
to December 2005. We form portfolios according to size, industry, size and
book-to-market ratio, momentum and coskewness and compare alternative
asset pricing models. The traditional capital asset pricing model (CAPM)
and the three-factor model of Fama and French are tested in the
multivariate testing procedure of Gibbons-Ross-Shanken (1989). Coskewness
is introduced as a fourth factor and its incremental effect over CAPM and
Fama-French factors is examined both in multivariate tests and in
cross-sectional regressions. The findings reveal that coskewness is able
to explain the size premium in ISE. Hence, the basic two-moment CAPM
without the coskewness factor would underestimate the expected return of
size portfolios. Multivariate test results indicate that coskewness
reduces the pricing bias, albeit insignificantly. Cross-sectional analysis
uncovers that coskewness has a significant additional explanatory power
over CAPM, especially for size and industry portfolios. However,
coskewness does not have a significant incremental explanatory power over
Fama-French factors in ISE.
Journal: Applied Economics
Pages: 2619-2633
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222611
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222611
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2619-2633
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Angel Jimenez-Martin
Author-X-Name-First: Juan Angel
Author-X-Name-Last: Jimenez-Martin
Author-Name: Rafael Flores de Frutos
Author-X-Name-First: Rafael Flores de
Author-X-Name-Last: Frutos
Title: Seasonal fluctuations and equilibrium models of exchange rate
Abstract:
Most of the evidence on dynamic equilibrium exchange rate models is based
on seasonally adjusted consumption data. Equilibrium models have not
worked well in explaining the actual exchange rate. However, the use of
seasonally adjusted data might be responsible for the spurious rejection
of the model. This article presents a new equilibrium model for the
exchange rates that incorporates seasonal preferences. The fit of the
model to the data is evaluated for five industrialized countries using
seasonally unadjusted data. Our findings indicate that a model with
seasonal preferences can generate monthly time series of the exchange rate
without seasonality even when the variables that theoretically determine
the exchange rate show clear seasonal behaviours. Further, the model can
generate theoretical exchange rates with the same order of integration
than actual exchange rates, and in some cases, with the same stochastic
trend.
Journal: Applied Economics
Pages: 2635-2652
Issue: 20
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701222603
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701222603
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Handle: RePEc:taf:applec:v:41:y:2009:i:20:p:2635-2652
Template-Type: ReDIF-Article 1.0
Author-Name: Kuniyoshi Saito
Author-X-Name-First: Kuniyoshi
Author-X-Name-Last: Saito
Title: Does asymmetric information matter in the early insurance market? Evidence from the auto insurance market
Abstract:
In the late 1960s, the performance of automobile insurance declined
dramatically in Japan in spite of rapid growth in the diffusion rate, and
the premiums were sharply raised several times in order to improve the
situation. This observation indicates the possible presence of adverse
selection (death spiral), and provides an ideal situation for assessing
informational asymmetry. Using bodily injury liability (BIL) insurance
data from 46 Japanese prefectures over the period 1966 to 1975, this
article tests two hypotheses of adverse selection: (i) high-risk drivers
were more likely to join the BIL insurance market and (ii) sharp premium
increases drove low-risk policyholders away. Various empirical analyses
show that there is little evidence for either type of adverse selection.
We also test whether a risk-misperception hypothesis can explain our
results, and find some evidence that the population density have a
significantly positive impact on the demand for BIL insurance.
Journal: Applied Economics
Pages: 2653-2666
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335546
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335546
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2653-2666
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel V. Montes Rojas
Author-X-Name-First: Gabriel V.
Author-X-Name-Last: Montes Rojas
Author-Name: Lucas Siga
Author-X-Name-First: Lucas
Author-X-Name-Last: Siga
Title: On the nature of micro-entrepreneurship: evidence from Argentina
Abstract:
We analyse the nature of micro-entrepreneurship in Argentina. We focus on
whether the sector resembles its counterpart in industrialized countries,
characterized by the risk-taking nature of the entrepreneurial activity,
or if it is the result of labour market distortions and disguised
unemployment, as in the dual economy hypothesis. Our results suggest a
segmentation of the micro-entrepreneur sector. Both young uneducated and
middle aged highly educated salaried workers have the highest likelihood
of becoming entrepreneurs. However, the first segment has a high
probability of becoming own-account workers, while the probability of
becoming micro-entrepreneurs with employees is strictly increasing in both
age and education. Moreover, the probability of entrepreneur failure (as
measured by the transition to the salaried sector) has an inverted U
shape, implying that both high and low skill individuals are more likely
to remain entrepreneurs.
Journal: Applied Economics
Pages: 2667-2680
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335553
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335553
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2667-2680
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Tabak
Author-X-Name-First: Benjamin
Author-X-Name-Last: Tabak
Title: Testing the expectations hypothesis in the Brazilian term structure of interest rates: a cointegration analysis
Abstract:
In this article the expectations hypothesis (EH) is tested using
cointegration techniques, for maturities ranging from 1 to 12 months, for
the Brazilian market. We found evidence suggesting that, for the period
1995-2006, the cointegration implication generally seems to hold. We also
found strong evidence supporting causality from short to long rates and
also in the opposite direction. Empirical evidence supports the
expectations theory of the term structure of interest rates.
Journal: Applied Economics
Pages: 2681-2689
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335579
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335579
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2681-2689
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bellak
Author-X-Name-First: Christian
Author-X-Name-Last: Bellak
Author-Name: Markus Leibrecht
Author-X-Name-First: Markus
Author-X-Name-Last: Leibrecht
Title: Do low corporate income tax rates attract FDI? - Evidence from Central- and East European countries
Abstract:
Fifty six bilateral country relationships combining 7 home countries from
the EU and the US, and 8 Central and East European host countries (CEECs)
of foreign direct investment (FDI) from 1995-2003 are used in a panel
gravity-model setting to estimate the role of taxation as a determinant of
FDI. While gravity variables explain most of the variation of FDI inflows,
the bilateral effective average tax rate (beatr) is roughly equally
important to other cost-related factors. The semi-elasticity of FDI with
respect to taxes is about -4.3. This value is above those of earlier
studies in absolute terms and can partly be attributed to using the beatr
instead of the statutory tax rate. Our results indicate that tax-lowering
strategies of CEEC governments seem to have an important impact on foreign
firms location decisions.
Journal: Applied Economics
Pages: 2691-2703
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701320217
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320217
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2691-2703
Template-Type: ReDIF-Article 1.0
Author-Name: Suchin Virabhak
Author-X-Name-First: Suchin
Author-X-Name-Last: Virabhak
Author-Name: Wook Sohn
Author-X-Name-First: Wook
Author-X-Name-Last: Sohn
Title: The impact of Medicaid's preferred drug lists on physicians' prescribing behaviour
Abstract:
This article examines Medicaid preferred drug lists (PDLs), a
cost-containment tool that designates specific drugs for use by Medicaid
beneficiaries. We develop an empirical model to measure the direct and
spillover effects of Medicaid PDL across Medicaid, cash and third-party
payer markets; and apply product level panel data to the cardiovascular
market in Illinois and Louisiana. We find a significant decrease in
post-PDL Medicaid prescription shares of drugs excluded from the PDL.
Spillovers onto third parties and the cash market are also statistically
significant. Moreover, a more restrictive prior authorization procedure
has a greater impact on prescription shares. There is evidence of gradual
adjustment in prescription shares. Lastly, the impact of PDLs is stronger
among physicians with a higher share of Medicaid prescriptions.
Journal: Applied Economics
Pages: 2705-2725
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701320209
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320209
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2705-2725
Template-Type: ReDIF-Article 1.0
Author-Name: Chang-Chiang Chin
Author-X-Name-First: Chang-Chiang
Author-X-Name-Last: Chin
Author-Name: Huei-Mei Liang
Author-X-Name-First: Huei-Mei
Author-X-Name-Last: Liang
Title: The long-run uncovered interest rate parity in view of a trading strategy
Abstract:
Uncovered Interest Rate Parity (UIP) states that bonds in different
denomination should produce the same returns if the maturities of the
bonds are the same. Given this, if a foreign bond produces a lower holding
period return than a home bond of the same maturity, for their remaining
lives the same foreign bond ought to produce a return higher than the home
bond. A test is designed according to this relationship. With 1 to 6 year
interest rate data of U.S., Britain and Germany from 1979 to 2005, our
test shows that this relationship is more reliable for 6-year interest
rates than the shorter rates in general. This result lends support to the
long-run UIP. A trading strategy is developed by utilizing this idea. We
show that positive returns can be achieved by the strategy for bonds of
longer horizons. This result also serves as indirect evidence of the
long-run UIP.
Journal: Applied Economics
Pages: 2727-2739
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701320225
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701320225
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2727-2739
Template-Type: ReDIF-Article 1.0
Author-Name: Salih Katircioglu
Author-X-Name-First: Salih
Author-X-Name-Last: Katircioglu
Title: Tourism, trade and growth: the case of Cyprus
Abstract:
Although the relationship between international trade and economic growth
has found a wide application area in the literature over the years, this
can not be said about tourism and growth or trade and tourism. This study
employs the bounds test for cointegration and Granger causality tests to
investigate a long-run equilibrium relationship between tourism, trade and
real income growth, and the direction of causality among themselves for
Cyprus. Results reveal that tourism, trade and real income growth are
cointegrated; thus, a long-run equilibrium relationship can be inferred
between these three variables. On the other hand, Granger causality test
results suggest that real income growth stimulates growth in international
trade (both exports and imports) and international tourist arrivals to the
island. Furthermore, growth in international trade (both exports and
imports) also stimulates an increase in international tourist arrivals to
Cyprus. And finally, real import growth stimulate growth in real exports
in the case of Cyprus.
Journal: Applied Economics
Pages: 2741-2750
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335512
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335512
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2741-2750
Template-Type: ReDIF-Article 1.0
Author-Name: Zhongmin Wu
Author-X-Name-First: Zhongmin
Author-X-Name-Last: Wu
Author-Name: Mark Baimbridge
Author-X-Name-First: Mark
Author-X-Name-Last: Baimbridge
Author-Name: Yu Zhu
Author-X-Name-First: Yu
Author-X-Name-Last: Zhu
Title: Multiple job holding in the United Kingdom: evidence from the British Household Panel Survey
Abstract:
This article examines the determinants of multiple job holding in the UK.
We address these issues using data from the first 11 waves of the British
Household Panel Survey (BHPS), which covered the period from 1991 to 2001.
Evidence from the BHPS does not support the hypotheses of main job hours
constrained and main job insecurity. We argue that the incentive for
moonlighting in the UK is due to financial pressures and the desire for
heterogeneous jobs. The empirical work is carried out separately for men
and women.
Journal: Applied Economics
Pages: 2751-2766
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335520
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335520
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2751-2766
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Razack
Author-X-Name-First: Abdul
Author-X-Name-Last: Razack
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: David Holland
Author-X-Name-First: David
Author-X-Name-Last: Holland
Title: A general equilibrium analysis of production subsidy in a Harris-Todaro developing economy: an application to India
Abstract:
Since 1950s India has advocated import substituting industrialization
policies to promote its manufacturing sector. The end result was creation
of a dual economy: highly favored manufacturing sector with high and rigid
wages and neglected agricultural sector with low wages and poverty.
Because of the higher wages in the manufacturing sector, the rural
laborers migrate to the urban sector, a typical characteristic of the
Harris-Todaro developing economy. Realizing this crisis, the Indian
government recently initiated policies to boost agricultural production to
curb the labor migration and improve the welfare of the rural population.
In this study, we develop a computable general equilibrium (CGE) model for
India by incorporating Harris-Todaro economic characteristics of
unemployment, labor migration, farm dependant population, and
labor-intensive agriculture. We use the model to analyze the effects of
agricultural production subsidy policies on employment, factor price,
output price, output levels, and welfare in agricultural and manufacturing
sectors. Our findings show that agricultural production subsidy increases
agricultural production, reduces unemployment, raises the wage rate in the
agriculture sector, augments the consumption among the rural and urban
households, and increases the rental rate for capital in agricultural
sector.
Journal: Applied Economics
Pages: 2767-2777
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335561
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335561
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2767-2777
Template-Type: ReDIF-Article 1.0
Author-Name: Vani Borooah
Author-X-Name-First: Vani
Author-X-Name-Last: Borooah
Author-Name: John Mangan
Author-X-Name-First: John
Author-X-Name-Last: Mangan
Title: Home is where the hurt is: an econometric analysis of injuries caused by spousal assault
Abstract:
Using data on injuries presenting at the emergency departments of
participating hospitals in the Australian state of Queensland we examine
the nature of injuries resulting from spousal assault and compare them to
injuries from nonspousal assault and accidental injuries. We ask: who are
the persons most vulnerable to spousal assault?, Are spousal assault
injuries more (or less) severe than injuries from nonspousal assault and
accidental injuries? Do the recorded figures for assault injuries on women
understate the true number of assault injuries, and if so, by how much?
'But for my bonny Kate, she must with me. I will be master of what is mine
own. She is my goods, my chattels' (Taming of the Shrew).
Journal: Applied Economics
Pages: 2779-2787
Issue: 21
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335637
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335637
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Handle: RePEc:taf:applec:v:41:y:2009:i:21:p:2779-2787
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of transport: introduction and overview
Abstract:
We provide an introduction and overview to the nine applied studies
making up this special theme on transport. The studies cover a wide range
of national and regional experience and employ a variety of applied
techniques.
Journal: Applied Economics
Pages: 2789-2791
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840903283379
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903283379
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2789-2791
Template-Type: ReDIF-Article 1.0
Author-Name: Sigbjørn Sødal
Author-X-Name-First: Sigbjørn
Author-X-Name-Last: Sødal
Author-Name: Steen Koekebakker
Author-X-Name-First: Steen
Author-X-Name-Last: Koekebakker
Author-Name: Roar Adland
Author-X-Name-First: Roar
Author-X-Name-Last: Adland
Title: Value based trading of real assets in shipping under stochastic freight rates
Abstract:
The article uses a real options valuation model with stochastic freight
rates to investigate market efficiency and the economics of switching
between the dry bulk and the tanker markets in international shipping. A
dry bulk carrier is replaced with a tanker when the expected net present
value of such a switch is optimal from a real options based decision rule.
Depending on the development of the markets a reversal may take place
later. The cost and demand parameters upon which the decisions to switch
are made, including the stochastic characteristics of freight rates, are
estimated from an empirical analysis that is updated every week throughout
a 12-year time period from 1993 to 2005. The second-hand market for bulk
ships seems to have been efficient most of these years in the sense that
market switching usually did not pay off, with one major exception: it
seemed profitable in expectation to leave the dry bulk market and enter
the tanker market over a significant period of time shortly after the
millennium shift, and to return to the dry bulk market about three years
later. These points in time corresponded with an unprecedented boom period
in the tanker and dry bulk freight markets, respectively, and the result
suggest that agents in the second-hand market were slow to adjust their
expectations. In retrospect, such an investment policy also happened to be
profitable compared to staying put in the tanker market, even after
accounting for transaction costs.
Journal: Applied Economics
Pages: 2793-2807
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701720853
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720853
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2793-2807
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Schulze
Author-X-Name-First: Peter
Author-X-Name-Last: Schulze
Author-Name: Alexander Prinz
Author-X-Name-First: Alexander
Author-X-Name-Last: Prinz
Title: Forecasting container transshipment in Germany
Abstract:
In this article, we examine container transshipment at German ports using
the Seasonal Auto-Regressive Integrated Moving Average (SARIMA) model and
the Holt-Winters exponential smoothing approach. Our models are designed
especially to take account of the seasonal behaviour of the quarterly data
used. We consider the dynamic development in this sector for the whole
container throughput and also the destinations Asia, Europe and North
America, which are the world's three main economic regions. Our data runs
from the first quarter of 1989 to the fourth quarter of 2006. We provide
detailed quarterly forecasts for the years 2007 and 2008. According to
forecasting error measures such as mean square error and Theil's U, the
SARIMA-approach yields slightly better values of modelling the container
throughput than the exponential smoothing approach. Our forecast results
indicate further strong growth for German container handling in total and
especially for the destinations Asia and Europe. Only the container
transshipment between Germany and North America shows rather small
increases up to the end of 2008.
Journal: Applied Economics
Pages: 2809-2815
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802260932
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260932
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2809-2815
Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsiu Laih
Author-X-Name-First: Chen-Hsiu
Author-X-Name-Last: Laih
Author-Name: Kuan-Yu Chen
Author-X-Name-First: Kuan-Yu
Author-X-Name-Last: Chen
Title: Economics on the optimal port queuing pricing to bulk ships
Abstract:
This article develops the optimal single step toll scheme which is levied
to bulk ships for a queuing port. Bulk ships' arrival times at the port
will be rationally dispersed after pricing this toll scheme. Consequently,
the queuing time at the anchorage to all bulk ships will be rationally
decreased. This article shows bulk ships' equilibrium arrival rate
distributions during the queuing period before and after establishing the
optimal single step toll scheme. This article also shows bulk ship owners'
decisions of arrival time adjustments under the optimal single step toll
scheme. Based on these results, we find some bulk ships that paid no toll
under the optimal single step toll scheme to maintain the same arrival
times at the anchorage as they did in the original nontoll equilibrium
situation. New arrival times at the anchorage for other bulk ships that
paid the toll are postponed when compared with their original arrival
times in the nontoll equilibrium situation.
Journal: Applied Economics
Pages: 2817-2825
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701736156
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736156
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2817-2825
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Couto
Author-X-Name-First: Antonio
Author-X-Name-Last: Couto
Author-Name: Daniel Graham
Author-X-Name-First: Daniel
Author-X-Name-Last: Graham
Title: The determinants of efficiency and productivity in European railways
Abstract:
This article evaluates the economic performance of European railways over
the period 1972 to 1999. The cost structure of the railway industry is
analysed using a stochastic frontier approach estimated within the
framework of a translog cost system. The results confirm that European
railways experience significant cost increases due to inefficient
behaviour. In contrast to previous studies, however, the estimates
indicate a much greater role for allocative rather than technical
inefficiency. Overall, inefficiencies can essentially be explained by the
supply of excess capacity and by the over-employment of labour inputs.
Regarding productivity, it appears to be technological progress, and not
levels of efficiency or scale economies, that provide the most convincing
explanation for variance in growth rates within the sample.
Journal: Applied Economics
Pages: 2827-2851
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840801949782
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801949782
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2827-2851
Template-Type: ReDIF-Article 1.0
Author-Name: Germa Bel
Author-X-Name-First: Germa
Author-X-Name-Last: Bel
Author-Name: Xavier Fageda
Author-X-Name-First: Xavier
Author-X-Name-Last: Fageda
Title: Preventing competition because of 'solidarity': rhetoric and reality of airport investments in Spain
Abstract:
From a public interest perspective, there could be a justification for
constraining market mechanisms with the aim of progressive redistribution.
However, some policies might be based on selfish motivations of government
agents. In this article, we empirically contrast if the infrastructure
policy is based only on public interest motivations or if it is also based
on the private motivations of policy makers. In this way, Spain
infrastructure policy provides a useful policymaking field to test
hypothesis about the behaviour of policy makers. We find some evidence
regarding the strength of political motivations in explaining such
behaviour. In fact, results from our analysis show that political
motivations can eventually play a more relevant role than social welfare
maximization.
Journal: Applied Economics
Pages: 2853-2865
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701522846
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522846
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2853-2865
Template-Type: ReDIF-Article 1.0
Author-Name: Winand Emons
Author-X-Name-First: Winand
Author-X-Name-Last: Emons
Author-Name: George Sheldon
Author-X-Name-First: George
Author-X-Name-Last: Sheldon
Title: The market for used cars: new evidence of the lemons phenomenon
Abstract:
The lemons model assumes that owners of used cars have an information
advantage over potential buyers with respect to the quality of their
vehicles. Owners of bad cars try to sell them to ill-informed buyers while
owners of good cars hold on to theirs. Consequently, the quality of traded
automobiles tends to be sub-average. In contrast to previous empirical
work, the following article investigates the behaviour of both buyers and
sellers, testing for adverse selection by sellers and for quality
uncertainty among buyers with a sample consisting of all 1985 cars
registered in the Swiss canton of Basle City over the period 1985 to 1991.
Our data supports both adverse selection and buyer uncertainty, suggesting
that a lemons problem exists.
Journal: Applied Economics
Pages: 2867-2885
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802277332
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802277332
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2867-2885
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Matas
Author-X-Name-First: Anna
Author-X-Name-Last: Matas
Author-Name: Josep-Lluis Raymond
Author-X-Name-First: Josep-Lluis
Author-X-Name-Last: Raymond
Title: Hedonic prices for cars: an application to the Spanish car market, 1981-2005
Abstract:
In this article we provide a comparison of different formulations for
hedonic regression analysis in order to construct a quality adjusted price
index for the Spanish car market over the period 1981 to 2005.
Specifically, we address the issue of instability of coefficients over
time, and propose two alternative estimation procedures based, firstly, on
a moving sample of observations and, secondly, on a moving average of
estimated coefficients in single period equations. The statistical tests
applied support the proposed methodologies. On empirical grounds two
conclusions can be emphasized. Firstly, our study concludes that, taking
quality changes into account, car prices in Spain deflated by consumer
price index (CPI) declined by 40% between 1981 and 2005. This result is
robust to the alternative estimation procedures employed in the study.
Secondly, an analysis of σ-convergence shows that for quality
adjusted prices a clear trend in σ-convergence emerges between 1986
and 1992, whereas such a trend does not exists for observed prices. This
result has to be related to Spain's integration into the European
Community (EC).
Journal: Applied Economics
Pages: 2887-2904
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701720945
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720945
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2887-2904
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Loeb
Author-X-Name-First: Peter
Author-X-Name-Last: Loeb
Author-Name: William Clarke
Author-X-Name-First: William
Author-X-Name-Last: Clarke
Author-Name: Richard Anderson
Author-X-Name-First: Richard
Author-X-Name-Last: Anderson
Title: The impact of cell phones on motor vehicle fatalities
Abstract:
This article develops a set of models for the determinants of automobile
fatalities with particular attention devoted to the effects of increased
cell phone usage. Cell phones have been associated with both life taking
and life-saving properties. However, prior statistical evaluations of the
effects of cell phones have led to fragile results. We develop in this
article econometric models using time-series data, allowing for polynomial
structures of the regressors. The models are evaluated with a set of
specification error tests providing reliable estimates of the effects of
the various policy and driving-related variables evaluated. The
statistical results indicate the effect of cell phones is nonmonotonic
depending on the volume of phones in use, first having a net life-taking
effect, then a net life-saving effect, followed finally with a net
life-taking effect as the volume of phone use increases.
Journal: Applied Economics
Pages: 2905-2914
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701858133
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858133
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2905-2914
Template-Type: ReDIF-Article 1.0
Author-Name: Junyi Shen
Author-X-Name-First: Junyi
Author-X-Name-Last: Shen
Title: Latent class model or mixed logit model? A comparison by transport mode choice data
Abstract:
This article applies two recently stated choice survey datasets of Japan
to investigate the difference between the Latent Class Model (LCM) and the
Mixed Logit Model (MLM) for transport mode choice. A detailed comparison
is carried out, focusing on comparing values of time savings, direct
choice elasticities, predicted choice probabilities and prediction success
indices. Furthermore, a test on nonnested model is also utilized to help
determine which model is superior to another one. The results suggest that
the LCM performs better than the MLM in both datasets.
Journal: Applied Economics
Pages: 2915-2924
Issue: 22
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840801964633
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964633
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Handle: RePEc:taf:applec:v:41:y:2009:i:22:p:2915-2924
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Stijns
Author-X-Name-First: Jean-Philippe
Author-X-Name-Last: Stijns
Title: Mineral wealth and human capital accumulation: a nonparametric approach
Abstract:
This article uses a nonparametric approach to investigate the nexus
between mineral wealth and human capital accumulation across countries.
Higher mineral wealth is associated with elevated levels of human capital
in a cross-section of countries. Matching the overall level of economic
development and political instability and violence, weakens but does not
reverse this conclusion. These results are economically significant.
Moving up from the bottom to the top quartile for subsoil wealth per
capita decreases illiteracy by ≈ 12% among young and adult females.
Conversely, moving down from the top to the bottom quartile for subsoil
wealth per capita decreases the average years of primary and total
education by ≈ 1.5 years for females. Results are consistent with
Hirschman's conjecture that enclave economies have weaker production
linkages but stronger government revenue linkages than other activities.
Most importantly, this article argues that caution should be exercised
when discouraging countries from exploiting their mineral wealth,
especially for countries where human capital is scarce. I know, [there is]
no safe depositary of the ultimate powers of society, but the people
themselves; and if we think them not enlightened enough to exercise their
control with wholesome discretion, the remedy is not to take it from them,
but to inform their discretion by education. This is the true corrective
of abuses of constitutional power. Letter from Thomas Jefferson to William
C. Jarvis, 1820, The Writings of Thomas Jefferson, Memorial Edition
(Lipscomb and Bergh, eds), Vol. 15, Washington, D.C., 1903-1904, p. 278.
Journal: Applied Economics
Pages: 2925-2941
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840601166900
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601166900
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2925-2941
Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Dumagan
Author-X-Name-First: J. C.
Author-X-Name-Last: Dumagan
Author-Name: V. E. Ball
Author-X-Name-First: V. E.
Author-X-Name-Last: Ball
Title: Decomposing growth in revenues and costs into price, quantity and total factor productivity contributions
Abstract:
This article employs the superlative Fisher and Tornqvist indexes for
exact decomposition of growth in nominal revenues and costs. The findings
confirm the well-known result that these indexes very closely approximate
each other, implying that the mathematically simpler and computationally
easier Tornqvist is the more practicable index. Moreover, this article's
nominal growth decomposition yields all the results from the more common
real growth decomposition and is also more informative for policy
purposes. Application to the US agricultural sector during 1948-2001 shows
that of the 3.31% average annual growth in revenues, TFP growth
contributed 1.90 percentage points (pct. pts.); growth in output prices
added 1.43 pct. pts.; while growth in input quantities contributed - 0.02
pct. pts. (i.e. fewer inputs). Therefore, real output growth (or revenue
growth less output price growth) was 1.88 pct. pts., revealing that TFP's
1.90 pct. pts. growth contribution was fully responsible for real output
growth with fewer inputs. Since revenues measure incomes, these results
suggest that policy should focus more on measures to foster TFP growth
than on specific price or quantity instruments to enhance income growth.
Journal: Applied Economics
Pages: 2943-2953
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367549
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367549
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2943-2953
Template-Type: ReDIF-Article 1.0
Author-Name: David Penn
Author-X-Name-First: David
Author-X-Name-Last: Penn
Title: Financial well-being in an urban area: an application of multiple imputation
Abstract:
This article estimates a model of self-reported financial well-being
(FWB) using primary data collected for a Southwestern U.S. city. Missing
data are estimated using multiple imputation. Model estimates show how FWB
depends on home ownership, the number of children, health insurance, age,
and income. Multiple imputation results differ somewhat from complete case
results.
Journal: Applied Economics
Pages: 2955-2964
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367507
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367507
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2955-2964
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmood Arai
Author-X-Name-First: Mahmood
Author-X-Name-Last: Arai
Author-Name: Fredrik Heyman
Author-X-Name-First: Fredrik
Author-X-Name-Last: Heyman
Title: Microdata evidence on rent-sharing
Abstract:
We examine the effect of firm profits on wages for individual workers
while focusing on the empirical complications associated with estimating
the extent of rent-sharing. Controlling for worker and firm fixed-effects
and using several instruments to deal with the endogeneity of profits, we
report results indicating that Ordinary Least Square (OLS)-estimates
strongly underestimate the effects of profits on wages. Moreover, the
effect of profits on wages are estimated separately for firms with
increasing and decreasing profits within a given time period. We find a
positive and stable effect only in firms with increasing profits. This is
in line with the idea that falling profits do not lead to wage cuts while
increasing profits imply higher wages.
Journal: Applied Economics
Pages: 2965-2976
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701721620
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721620
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2965-2976
Template-Type: ReDIF-Article 1.0
Author-Name: Susana Alonso-Bonis
Author-X-Name-First: Susana
Author-X-Name-Last: Alonso-Bonis
Author-Name: Valentin Azofra-Palenzuela
Author-X-Name-First: Valentin
Author-X-Name-Last: Azofra-Palenzuela
Author-Name: Gabriel de la Fuente-Herrero
Author-X-Name-First: Gabriel
Author-X-Name-Last: de la Fuente-Herrero
Title: Real option value and random jumps: application of a simulation model
Abstract:
This article studies how sensitive real option valuations are to
incorrect assumptions about the stochastic process followed by the state
variables. We design a valuation model which combines Monte Carlo
simulation and dynamic programming and provides an appropriate framework
to evaluate the effect of estimation errors on both the value of real
options and their critical frontier. Although the model is flexible enough
to value American-type options contingent on a wide range of stochastic
processes, we focus on the analysis of the effect of stochastic jumps. We
apply our model to the valuation of an investment in the car parts
industry documented in previous literature. Our results clearly show that
underestimating this type of jumps might lead to substantial misjudgements
in a firm's decision-making processes. For instance, it may lead to
profitable projects being rejected when jump diffusion is low, or negative
expanded net present value projects being accepted.
Journal: Applied Economics
Pages: 2977-2989
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335603
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335603
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2977-2989
Template-Type: ReDIF-Article 1.0
Author-Name: M. Teresa Balaguer-Coll
Author-X-Name-First: M.
Author-X-Name-Last: Teresa Balaguer-Coll
Author-Name: Diego Prior
Author-X-Name-First: Diego
Author-X-Name-Last: Prior
Title: Short- and long-term evaluation of efficiency and quality. An application to Spanish municipalities
Abstract:
This article analyses efficiency and quality levels in Spanish local
governments and their determining factors through the application of the
Data Envelopment Analysis methodology. It aims to discover to what extent
inefficiency arises from both quality considerations and external factors
beyond the organization's control, or alternatively, how much inefficiency
is due to inadequate resource management. As a component of inadequate
resource management, we test the existence of political-budgetary cycles
in the temporal evolution of inefficiencies. The results show that on the
whole there is still a wide margin within which local government
efficiency and quality levels could be increased, although it is revealed
that a great deal of inefficiency is due to exogenous or noncontrollable
factors. In particular, it has been found that the size of the
municipality, the per capita tax revenue, the per capita grants and the
amount of commercial activity are some of the factors related with local
government efficiency.
Journal: Applied Economics
Pages: 2991-3002
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701351923
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701351923
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2991-3002
Template-Type: ReDIF-Article 1.0
Author-Name: Camilla Mastromarco
Author-X-Name-First: Camilla
Author-X-Name-Last: Mastromarco
Author-Name: Marco Runkel
Author-X-Name-First: Marco
Author-X-Name-Last: Runkel
Title: Rule changes and competitive balance in Formula One motor racing
Abstract:
This article provides an economic explanation of the frequent rule
changes in the Formula One (F1) motor racing series. In a two-stage model,
the FIA (the organizer of the F1) first decides whether to change the
rules or not, and then the racing teams compete in a contest. It turns out
that a rule change reduces the teams' performances, but also improves
competitive balance between the teams. The rule change is implemented, if
the FIA's revenue gain from the latter effect overcompensates the FIA's
revenue loss from the former effect. We provide empirical evidence from F1
seasons in the period 1950 to 2005, which supports the main implications
of the model.
Journal: Applied Economics
Pages: 3003-3014
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701349182
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701349182
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:3003-3014
Template-Type: ReDIF-Article 1.0
Author-Name: Minkyoung Kim
Author-X-Name-First: Minkyoung
Author-X-Name-Last: Kim
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Author-Name: Raymond Leuthold
Author-X-Name-First: Raymond
Author-X-Name-Last: Leuthold
Title: Managing price risks using and local polynomial kernel forecasts
Abstract:
This study contributes to understanding price risk management through
hedging strategies in a forecasting context. A relatively new forecasting
method, nonparametric local polynomial kernel (LPK), is used to forecast
prices and to generate ex ante hedge ratios. The selective multiproduct
hedge based on the LPK price and hedge ratio forecasts is in general found
to be better than continuous hedging, no hedging and alternative
forecasting procedures. Selective multivariate hedging using the LPK is
found to improve hog producer's expected returns. The findings indicate
that combining hedging with forecasts, especially when using the LPK
procedure, can improve price risk management.
Journal: Applied Economics
Pages: 3015-3026
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701351915
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701351915
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:3015-3026
Template-Type: ReDIF-Article 1.0
Author-Name: Diego Romero-Avila
Author-X-Name-First: Diego
Author-X-Name-Last: Romero-Avila
Title: Productive physical investment and growth: testing the validity of the AK model from a panel perspective
Abstract:
In this article, we analyse the relationship between productive physical
investment and economic growth from a panel perspective for a sample of 61
countries spanning the period 1950 to 1992. The analysis can be thought of
as two-fold. First, we test the empirical validity of AK models following
the logic by Jones (1995). For that purpose, we determine the degree of
persistence of physical investment rates and growth by employing recently
developed panel unit-root tests that enable us to make more reliable
inferences about the existence of stochastic trends in the series. Second,
we estimate the long-run effect of physical investment on growth by using
panel data techniques rather than cross-section regressions. Overall, our
findings cast doubts on the rejection of the empirical validity of the AK
model, as suggested by Jones' analysis.
Journal: Applied Economics
Pages: 3027-3043
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335611
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335611
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:3027-3043
Template-Type: ReDIF-Article 1.0
Author-Name: Pilsun Choi
Author-X-Name-First: Pilsun
Author-X-Name-Last: Choi
Author-Name: Insik Min
Author-X-Name-First: Insik
Author-X-Name-Last: Min
Title: Estimating endogenous switching regression model with a flexible parametric distribution function: application to Korean housing demand
Abstract:
This study introduces Johnson's SU-normal distribution which can
accommodate the flexibility of true error distribution to obtain
consistent estimates in an endogenous switching regression model.
Simulation results indicate that the SU-normal model outperforms the
normal model for the consistency of estimators when the error distribution
is nonnormal. Korean housing demand model estimated by the SU-normal model
also outperforms the normal model in terms of parameter estimates and
graphical predictions.
Journal: Applied Economics
Pages: 3045-3055
Issue: 23
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701335595
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701335595
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Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:3045-3055
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Ali Kutan
Author-X-Name-First: Ali
Author-X-Name-Last: Kutan
Author-Name: Su Zhou
Author-X-Name-First: Su
Author-X-Name-Last: Zhou
Title: Towards solving the PPP puzzle: evidence from 113 countries
Abstract:
Several different approaches have been followed by researchers to test
the validity of Purchasing Power Parity (PPP). Since the introduction of
the unit-root tests, researchers have applied a battery of these tests to
determine whether the real exchange rates are stationary. If the answer is
in the affirmative, PPP is validated. While application of the standard
augmented Dickey-Fuller test has not provided much support for PPP, a test
that incorporates nonlinearity in the rates has. Under both tests,
however, the null of nonstationary is tested against the alternative of
stationarity. In this article, when we switch the null with the
alternative and apply Kwiatkowski et al. (1992) test, we provide
relatively more support for the theory, getting closer and closer towards
solving the PPP puzzle.
Journal: Applied Economics
Pages: 3057-3066
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367648
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367648
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3057-3066
Template-Type: ReDIF-Article 1.0
Author-Name: Robert-Paul Berben
Author-X-Name-First: Robert-Paul
Author-X-Name-Last: Berben
Author-Name: W. Jos Jansen
Author-X-Name-First: W.
Author-X-Name-Last: Jos Jansen
Title: Bond market and stock market integration in Europe: a smooth transition approach
Abstract:
This article investigates whether there has been a structural increase in
financial market integration in nine European countries and the US in the
period 1980 to 2003. We employ a GARCH model with a smoothly time-varying
correlation to estimate the date of change and the speed of the transition
between the low and high correlation regimes. Our test produces strong
evidence of greater comovement across the board for both stock markets and
government bond markets. Dates of change and speeds of adjustment vary
widely across country linkages. Stock market integration is a more gradual
process than bond market integration. The impact of European monetary
union (EMU) is rather limited, as it has mainly affected the timing of
bond market correlation gains (but hardly their size) and has had little
discernible effect on stock market integration.
Journal: Applied Economics
Pages: 3067-3080
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367572
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367572
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3067-3080
Template-Type: ReDIF-Article 1.0
Author-Name: Roderick Rejesus
Author-X-Name-First: Roderick
Author-X-Name-Last: Rejesus
Author-Name: Bruce Sherrick
Author-X-Name-First: Bruce
Author-X-Name-Last: Sherrick
Author-Name: Gary Schnitkey
Author-X-Name-First: Gary
Author-X-Name-Last: Schnitkey
Author-Name: Cesar Escalante
Author-X-Name-First: Cesar
Author-X-Name-Last: Escalante
Title: Factors influencing producers' perceptions about the importance of government support programmes in agriculture: application of a semi-parametric ordered response model
Abstract:
This article examines factors affecting producers' perceptions towards
the relative importance of government support programmes in agriculture.
Specific attention is placed on determining the effect of crop insurance
usage on farmers' views about the importance of government programme
payments. Results from a semi-parametric ordered response model shows that
producers who use yield- or revenue-based crop insurance products also
tend to view government programmes with higher importance, suggesting that
crop insurance and direct government support programmes tend to be
complements rather than substitutes.
Journal: Applied Economics
Pages: 3081-3092
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367580
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367580
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3081-3092
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Elbers
Author-X-Name-First: Chris
Author-X-Name-Last: Elbers
Author-Name: Jan Willem Gunning
Author-X-Name-First: Jan Willem
Author-X-Name-Last: Gunning
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Title: Insurance and rural welfare: what can panel data tell us?
Abstract:
Assessing the scope for insurance in rural communities usually requires a
structural model of household behaviour under risk. One of the few
empirical applications of such models is the study by Rosenzweig and
Wolpin (1993) who conclude that Indian farmers in the ICRISAT villages
would not benefit from the introduction of formal weather insurance. In
this article we investigate how models such as theirs can be estimated
from panel data on production and assets. We show that if assets can take
only a limited number of values the coefficients of the model cannot be
estimated with reasonable precision. We also show that this can affect the
conclusion that insurance would not be welfare improving.
Journal: Applied Economics
Pages: 3093-3101
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367614
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367614
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3093-3101
Template-Type: ReDIF-Article 1.0
Author-Name: Tatsushi Oka
Author-X-Name-First: Tatsushi
Author-X-Name-Last: Oka
Title: Juvenile crime and punishment: evidence from Japan
Abstract:
Over the last decade, juvenile crime has become a serious social problem
in Japan. The Juvenile Law was revised in 2001 to impose harsher
punishment on juvenile offenders. This revision makes it possible to
impose criminal punishment on 14- and 15-year-old criminal offenders,
while those offenders aged 16-19 have always faced criminal punishment,
both before and after the revision. Using this revision as a natural
experiment, this study conducts a difference-in-differences estimation to
examine the effect of punishment on juvenile crime. The analysis provides
evidence that punishment can deter juvenile crime. In addition, this
research examines the criminal behaviour of 13-year-olds, who face no
change in punishment, but who soon will in the near future. The results
suggest that the revision also had a negative impact on the criminal
behaviour of these younger offenders.
Journal: Applied Economics
Pages: 3103-3115
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701365923
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701365923
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3103-3115
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Bodman
Author-X-Name-First: Philip
Author-X-Name-Last: Bodman
Title: Output volatility in Australia
Abstract:
A number of papers have documented a significant decline in real GDP
volatility in several major OECD economies. Some authors have presented
evidence to suggest that this is the outcome of a one-off structural break
from a high to low volatility state whilst others have estimated regime
switching models that indicate low volatility regime states have dominated
in recent years. This article provides further evidence on the general
properties of output volatility for Australia, including evidence of a
significant moderation in output volatility for the country that occurred
in the early 1980s. Estimates of various GARCH models of real GDP growth
are also provided to further examine shorter term volatility features of
the Australian economy that are associated with its business-cycle. A
regime shift dummy is maintained in all models of the conditional variance
in order to account for the regime shift in volatility and evidence is
found of significant business-cycle effects, including leverage effects
and asymmetries that suggest recessions are times of higher output
volatility than economic expansions. Overall, it is concluded that the
so-called 'Great Moderation' in macroeconomic instability, as documented
here for Australia, is a result of a myriad of economic, institutional and
policymaking changes.
Journal: Applied Economics
Pages: 3117-3129
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367622
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367622
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3117-3129
Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: Brinda Viswanathan
Author-X-Name-First: Brinda
Author-X-Name-Last: Viswanathan
Author-Name: E. A. Selvanathan
Author-X-Name-First: E. A.
Author-X-Name-Last: Selvanathan
Author-Name: Muthu Mangai
Author-X-Name-First: Muthu
Author-X-Name-Last: Mangai
Title: Modelling the domestic and foreign tourist arrivals to Tamil Nadu (India)
Abstract:
In recent years, due to the Indian Federal Government's and Tamil Nadu
State Government's various initiatives and promotional activities, foreign
and domestic tourist arrivals in Tamil Nadu are on the increase. This
article aims to model the monthly tourist arrivals (foreign as well as
domestic) in Tamil Nadu for monthly time series data during the period
1998 to 2002 using univariate time-series models. As both time series show
strong seasonal patterns, we also investigate the possibility of seasonal
unit roots in the domestic and foreign tourist arrivals series. The
results show that significant growth in domestic and foreign arrivals
takes place during the months December to January. Growth rate for
domestic tourist arrivals is positive during April and May, but is
negative for the foreign tourist arrivals during April and insignificant
during May. Such information would be very useful to the Tamil Nadu
government and the tourism industry in maximizing the usage of available
tourist spot infrastructure and to provide high quality service.
Journal: Applied Economics
Pages: 3131-3142
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367598
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367598
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3131-3142
Template-Type: ReDIF-Article 1.0
Author-Name: Jongsu Lee
Author-X-Name-First: Jongsu
Author-X-Name-Last: Lee
Author-Name: Minkyu Lee
Author-X-Name-First: Minkyu
Author-X-Name-Last: Lee
Title: Analysis on the growth of telecommunication services: a global comparison of diffusion patterns
Abstract:
With the development of the Internet, the telecommunication market has
seen a rapid shift from voice-based services to data-based services.
Relationships of substitutability and complementarity have emerged among
communications technology services such as Internet service, mobile phone
service and fixed telephone service. The article analyses the diffusion
patterns of communication services in different continents. A modified
logistic growth model is estimated using panel data for the years
1975-2004. The research forms a valuable framework for forecasting demand
for new services based on the diffusion of incumbent services and can
inform strategies for entering the communications network industry.
Journal: Applied Economics
Pages: 3143-3150
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367655
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367655
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3143-3150
Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman
Author-X-Name-First: Adnan
Author-X-Name-Last: Kasman
Author-Name: Evrim Turgutlu
Author-X-Name-First: Evrim
Author-X-Name-Last: Turgutlu
Title: Cost efficiency and scale economies in the Turkish insurance industry
Abstract:
This article examines the cost efficiency and scale economies of
insurance firms in the Turkish insurance industry over a 15-year period,
1990-2004. Using the stochastic cost frontier model, cost efficiency
scores and scale economies were estimated for each firm in the sample. The
results show that mean cost inefficiencies range between 18.3 and 36.9% of
total costs and they do not tend to decrease over time. On average, small
firms are more cost efficient than large firms. Economies of scale appear
present and significant for any class size. The results suggest that there
is a substantial difference in scale economies between small and large
insurance firms.
Journal: Applied Economics
Pages: 3151-3159
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367663
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367663
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3151-3159
Template-Type: ReDIF-Article 1.0
Author-Name: Gwanghoon Lee
Author-X-Name-First: Gwanghoon
Author-X-Name-Last: Lee
Title: International knowledge spillovers through the import of information technology commodities
Abstract:
Using the panel data from 1981 to 2000 of 17 Organization for Economic
Co-operation and Development (OECD) countries, we investigate the role of
the trade flow of information technology (IT) commodities in international
knowledge spillovers. We use the group mean fully modified ordinary least
squares (OLS) estimator, proposed by Pedroni (2000), that allows for
greater flexibility in the presence of heterogeneity of cointegrating
vectors among countries under panel cointegration. The results of
estimation confirm statistically significant positive effects of IT
imports on international knowledge spillovers. In contrast, non-IT imports
turn out to have negative effects on the productivity of importing
countries.
Journal: Applied Economics
Pages: 3161-3169
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367515
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367515
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3161-3169
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Jabir
Author-X-Name-First: Imad
Author-X-Name-Last: Jabir
Title: The dynamic relationship between the US GDP, imports and domestic production of crude oil
Abstract:
This article investigates the dynamic relationship between crude oil
imports, gross domestic product (GDP) and domestic crude oil production of
the United States using a Vector Error Correction model estimation,
generalized impulse response functions, persistence profile and variance
decompositions. This article results suggest that the GDP has a leading
role in determining oil imports.
Journal: Applied Economics
Pages: 3171-3178
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367531
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367531
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3171-3178
Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Chun Tseng
Author-X-Name-First: Wei-Chun
Author-X-Name-Last: Tseng
Author-Name: Chi-Chung Chen
Author-X-Name-First: Chi-Chung
Author-X-Name-Last: Chen
Title: Estimating the wetland rental fee: a case study involving a Taiwan wetland
Abstract:
Wetlands provide many functions that are both economic and recreational
and are valuable in terms of their ecological diversity, while at the same
time being nonmarket value products. The purpose of this study is to
estimate the optimal wetland rental through estimations of both the demand
and supply functions in relation to wetland. The wetland supply function
is directly estimated based on the data provided by the owners of the
wetland, while the estimation of the wetland input demand function
involves using the bootstrapping and contingent visitation approaches.
Such estimation approaches could also be applied to other nonmarket value
products that give rise to environmental externalities. The estimation of
rental fee could provide a long-term leasing contract that gives the
landlord with a particular rent to lease their lands to support a wetland
eco-tourism park to maintain wetland for substantial management. Several
environmental management policy implications are also addressed.
Journal: Applied Economics
Pages: 3179-3188
Issue: 24
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367630
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367630
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Handle: RePEc:taf:applec:v:41:y:2009:i:24:p:3179-3188
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of sport: introduction and overview
Abstract:
We provide an introduction and overview to the 15 applied studies making
up this special theme on sport. The studies cover a wide range of
international and regional experience and employ a variety of applied
techniques.
Journal: Applied Economics
Pages: 3189-3191
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840903385257
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903385257
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3189-3191
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Groothuis
Author-X-Name-First: Peter
Author-X-Name-Last: Groothuis
Author-Name: James Richard Hill
Author-X-Name-First: James Richard
Author-X-Name-Last: Hill
Author-Name: Timothy Perri
Author-X-Name-First: Timothy
Author-X-Name-Last: Perri
Title: The dilemma of choosing talent: Michael Jordans are hard to find
Abstract:
This article explores the dilemma of choosing talent using NBA data from
1987 to 2003. We find there is much uncertainty in selecting talent. If
superstars are found, they are usually identified early. However, more
false positives exist than correct decisions with high draft picks. Our
results suggest the dilemma of choosing talent is not so much a winner's
curse but more like a purchase of a lottery ticket. Most times you lose,
but, if you are going to win, you must buy a ticket.
Journal: Applied Economics
Pages: 3193-3198
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701564459
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564459
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3193-3198
Template-Type: ReDIF-Article 1.0
Author-Name: Uwe Sunde
Author-X-Name-First: Uwe
Author-X-Name-Last: Sunde
Title: Heterogeneity and performance in tournaments: a test for incentive effects using professional tennis data
Abstract:
This article provides an approach to test whether greater heterogeneity
of contestants leads to lower effort exertion in elimination tournaments,
as predicted by conventional tournament models. This prediction is
difficult to test with real world data because the effort is difficult to
measure. Based on a simple behavioural model, testable implications are
derived and an identification strategy is suggested that allows to test
for an incentive effect of heterogeneity even when the effort is
unobservable. The application uses data from professional tennis
tournaments and provides evidence that heterogeneity affects the
incentives to exert effort.
Journal: Applied Economics
Pages: 3199-3208
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802243789
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802243789
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3199-3208
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Cebula
Author-X-Name-First: Richard
Author-X-Name-Last: Cebula
Author-Name: Michael Toma
Author-X-Name-First: Michael
Author-X-Name-Last: Toma
Author-Name: Jay Carmichael
Author-X-Name-First: Jay
Author-X-Name-Last: Carmichael
Title: Attendance and promotions in minor league baseball: the Carolina League
Abstract:
This empirical study investigates determinants of attendance at minor
league baseball games in the Carolina League in 2006. The focus of the
analysis is on the effect of a wide variety of game-day promotions on
attendance on a game-by-game basis, rather than aggregate attendance
during the season. The Ordinary Least Square (OLS) results imply that
attendance is positively a function of per capita income in the city or
county hosting the team, runs scored by the home team, Friday and Saturday
games, and promotions that provide cost-reduced food or beverages, low-
and high-value merchandise and post-game fireworks. Attendance is
negatively a function of home team errors, Monday games and possibly rainy
conditions during the game. An unusual finding with respect to minor
league baseball is that team performance variables affect attendance.
However, home team runs scored and home team errors contribute to the
overall entertainment experience for the home team fans, and thus yield
plausible effects on attendance.
Journal: Applied Economics
Pages: 3209-3214
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840903286323
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903286323
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3209-3214
Template-Type: ReDIF-Article 1.0
Author-Name: James Swofford
Author-X-Name-First: James
Author-X-Name-Last: Swofford
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Author-Name: Trellis Green
Author-X-Name-First: Trellis
Author-X-Name-Last: Green
Title: Can a sub-optimal tournament be optimal when the prize can be collectively consumed? The case of college football's national championship
Abstract:
One of the most heated debates in all of sports is the annual debate over
major college football's national champion. Since its implementation in
1995, the Bowl Championship Series (BCS) system has often failed to quell
the controversy concerning what team is the Division 1 Football Bowl
Subdivision football champion. Many of the BCS controversies have spawned
changes in the title selection format, while others are perhaps the result
of certain changes. What remains now is the cry from some college football
fans for an expanded 'national championship playoff,' though college and
university presidents and many college football coaches continue to resist
these cries. We try to explain this resistance to expanding the number of
teams invited to compete for the BCS championship and the persistence of
the two team playoff format in college football. For three championship
eras-pre-BCS, BCS and a futuristic post-BCS expanded playoff-we first
relate some of the controversial details to concepts such as optimal
tournaments and the public goods concept of collective consumption.
Journal: Applied Economics
Pages: 3215-3223
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701765510
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765510
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3215-3223
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Caudill
Author-X-Name-First: Steven
Author-X-Name-Last: Caudill
Title: OSU and LSU: easy to spell but did they belong? Using the method of paired comparisons to evaluate the BCS rankings and the NCAA football championship game 2007-08
Abstract:
This article employs the Bradley-Terry method of paired comparisons,
previously used by Beard and Caudill (2007), to examine the 2007 National
Collegiate Athletic Association (NCAA) football season. We find that the
Bowl Championship Series (BCS) did get it right: Ohio State University
(OSU) number one and Louisiana State University (LSU) number two. Our
method also indicates that LSU played a much more difficult schedule than
OSU and that the Southeastern Conference (SEC) is the strongest conference
in the US.
Journal: Applied Economics
Pages: 3225-3230
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840903018809
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903018809
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3225-3230
Template-Type: ReDIF-Article 1.0
Author-Name: Bert Scholtens
Author-X-Name-First: Bert
Author-X-Name-Last: Scholtens
Author-Name: Wijtze Peenstra
Author-X-Name-First: Wijtze
Author-X-Name-Last: Peenstra
Title: Scoring on the stock exchange? The effect of football matches on stock market returns: an event study
Abstract:
We analyse the effect of results of football matches on the stock market
performance of football teams. We analyse 1274 matches of eight teams in
the national and European competition during 2000-2004. We find that the
stock market response is significant and positive for victories and
negative for defeats. The response is significantly stronger in the case
of defeat. The response is stronger for matches in the European
competition than for those in the national competition. Unexpected results
have a stronger impact for European matches than expected ones but this is
not the case in the national competition.
Journal: Applied Economics
Pages: 3231-3237
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701721406
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721406
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3231-3237
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Pedro Garcia-del-Barrio
Author-X-Name-First: Pedro
Author-X-Name-Last: Garcia-del-Barrio
Author-Name: Stephanie Leach
Author-X-Name-First: Stephanie
Author-X-Name-Last: Leach
Title: Analysing the technical efficiency of the Spanish Football League First Division with a random frontier model
Abstract:
This article analyses technical efficiency of football clubs in the
Spanish Football League Division 1 (Primera Liga) from the seasons
1995-1996 to 2004-2005 with an unbalanced panel data. The random frontier
model is used, allowing the identification of random variables in the cost
frontier. It is concluded that the price of capital investment, the number
of points won and attendance are heterogeneous variables. Therefore, no
common public policy aiming to improve efficiency can embrace all of the
clubs, so that policies by clusters are required.
Journal: Applied Economics
Pages: 3239-3247
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701765379
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765379
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3239-3247
Template-Type: ReDIF-Article 1.0
Author-Name: Phillip Miller
Author-X-Name-First: Phillip
Author-X-Name-Last: Miller
Title: Subsidized monopolists and product prices: the case of Major League Baseball
Abstract:
I analyse the setting of ticket prices when teams receive subsidization.
I model teams as entertainment providers, where entertainment is generated
by selling wins and amenities. I argue that subsidization of teams
generally comes from subsidizing the amenities in the teams' stadiums.
Subsidization lowers the marginal cost of providing them to fans, driving
ticket prices lower. The empirical analysis suggests that this is the
case. The average team playing in a 5-year-old public stadium charges a
ticket price that is 40 cents less than the same team playing in a private
stadium of the same age.
Journal: Applied Economics
Pages: 3249-3255
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802360203
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360203
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3249-3255
Template-Type: ReDIF-Article 1.0
Author-Name: Eiji Yamamura
Author-X-Name-First: Eiji
Author-X-Name-Last: Yamamura
Author-Name: Inyong Shin
Author-X-Name-First: Inyong
Author-X-Name-Last: Shin
Title: Convergence, clustering and their effects on attendance in the Japan Professional Baseball League
Abstract:
In this research, using a panel data set for the Japan Professional
Baseball League (JPBL) during the post-WWII period, we apply the technique
developed by Hobijn and Franses (2000) to examine the competitive balance
from the view point of convergence and its effect upon game attendance.
The JPBL comprises two leagues, the Central League (CL) and the Pacific
League (PL). The CL is far more popular with fans than the PL. Our
estimation results showed that the number of the PL clusters continues to
go towards unity, thereby raising the uncertainty of the outcome to
increase the PL game attendance more rapidly. Also, attendance by CL fans
tends to be more inelastic with team performance than for the PL.
Therefore, the PL payroll was more elastic to wins than that of the CL.
The features of each League have crucial impacts on the outcomes and the
behaviours of team insiders such as players and managers.
Journal: Applied Economics
Pages: 3257-3265
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367697
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3257-3265
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Krautmann
Author-X-Name-First: Anthony
Author-X-Name-Last: Krautmann
Title: Market size and the demand for talent in major league baseball
Abstract:
In this article, we look at how revenues affect the personnel decisions
of Major League Baseball (MLB) teams. It is well established that teams
with the strongest demands end up with the top stars and deepest benches,
thus the best chance of winning. Since a team's demand for talent is its
Marginal Revenue Product, the critical test is whether large-market teams
have a greater Marginal Revenue (MR). Controlling for the impact of
re-distributional efforts by MLB, we find that the MR of a large-market
team is about 50% larger than that of a small-market team. Furthermore, we
find that re-distributive efforts have a more severe effect on
small-market teams. “Are the New York Yankees a dynasty because
they outsmarted everyone? No, they just outspent everyone.” Sam
Smith, Chicago Tribune
Journal: Applied Economics
Pages: 3267-3273
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701582121
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701582121
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3267-3273
Template-Type: ReDIF-Article 1.0
Author-Name: Jason Winfree
Author-X-Name-First: Jason
Author-X-Name-Last: Winfree
Title: Owners incentives during the 2004-05 National Hockey League lockout
Abstract:
This study shows that firm owners can indirectly benefit from work
stoppages if they own other firms in substitute industries and gain market
power for those other firms. The incentives of the owners are examined
with a model of cross-ownership cartels and data from professional sports.
Assuming that various professional sport events are substitutes, owners
may increase profits by eliminating competition, even if they own the
competition. This study shows that the recent National Hockey League (NHL)
lockout caused a statistically significant increase in attendance for the
National Basketball Association and junior hockey leagues. Given that many
NHL owners own teams in these substitutable leagues, this could be
construed as anti-competitive behaviour and may have prolonged the NHL
lockout and helped NHL owners in collective bargaining. Given the public
investment in sports facilities and market power in professional sports,
this analysis calls for cross-ownership across professional sports to be
questioned.
Journal: Applied Economics
Pages: 3275-3285
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701765395
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765395
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3275-3285
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Klein
Author-X-Name-First: Christian
Author-X-Name-Last: Klein
Author-Name: Bernhard Zwergel
Author-X-Name-First: Bernhard
Author-X-Name-Last: Zwergel
Author-Name: J. Henning Fock
Author-X-Name-First: J.
Author-X-Name-Last: Henning Fock
Title: Reconsidering the impact of national soccer results on the FTSE 100
Abstract:
In past decades, many empirical studies revealed return anomalies in many
different asset classes and markets. Very recent publications have,
however, even found evidence that stock markets react to the results of
soccer matches. In this article, we argue that such empirical studies
should be analysed carefully; we thus endorse the use of replication
studies to verify results. Consequently, by rebuilding the study of Ashton
et al. (2003), we are able to detect mistakes in the empirical set-up.
Based on these findings, we demonstrate how even minor flaws can have a
crucial influence on the results of such studies and point out pitfalls
that are frequently encountered. We furthermore emphasize the importance
of robustness checks to validate the results of empirical studies.
Journal: Applied Economics
Pages: 3287-3294
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802112471
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112471
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3287-3294
Template-Type: ReDIF-Article 1.0
Author-Name: Florian Hagn
Author-X-Name-First: Florian
Author-X-Name-Last: Hagn
Author-Name: Wolfgang Maennig
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Maennig
Title: Large sport events and unemployment: the case of the 2006 soccer World Cup in Germany
Abstract:
This study analyses on the basis of a multivariate analysis ex post the
effects on the jobs market of a soccer World Cup, in this case the 2006
World Cup held in Germany. In addition to three methods already used for
other analyses in studies of sporting events, an extended
'Difference-in-Difference' estimate is used in order to compare the
development of the numbers of unemployed in the 12 World Cup venues with
the development of the numbers of unemployed in 63 other German cities.
The results demonstrate that in none of the respective match venues did
the effect of the sporting event on unemployment differ significantly from
zero.
Journal: Applied Economics
Pages: 3295-3302
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701604545
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604545
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3295-3302
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Bernd Frick
Author-X-Name-First: Bernd
Author-X-Name-Last: Frick
Author-Name: Jose Passos
Author-X-Name-First: Jose
Author-X-Name-Last: Passos
Title: Coaching for survival: the hazards of head coach careers in the German 'Bundesliga'
Abstract:
This article analyses how long head coaches survive in the clubs of the
first German football league ('Bundesliga'), where the dismissal of a
presumably weak coach is a generally adopted procedure in case of a poor
sporting performance of the team. We use duration models for repeated
events to accommodate the correlation within individuals. We find that the
head coaches of successful teams and those working during the more recent
'Bosman Effect' period are more likely to survive in the Bundesliga.
Moreover, the head coaches of clubs with relatively high team wage bills
are likely to survive for shorter periods of time.
Journal: Applied Economics
Pages: 3303-3311
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701721455
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721455
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3303-3311
Template-Type: ReDIF-Article 1.0
Author-Name: Hongbin Li
Author-X-Name-First: Hongbin
Author-X-Name-Last: Li
Author-Name: Lingsheng Meng
Author-X-Name-First: Lingsheng
Author-X-Name-Last: Meng
Author-Name: Qian Wang
Author-X-Name-First: Qian
Author-X-Name-Last: Wang
Title: The government's role in China's Olympic glory
Abstract:
This article examines the determinants of China's Olympic success by
drawing on provincial-level data. We find that it is government spending
on sports, rather than per capita income, that has the greatest impact on
this success. Our findings suggest that government involvement is still
the most fundamental feature of sports organization in China.
Journal: Applied Economics
Pages: 3313-3318
Issue: 25
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701736081
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736081
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Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3313-3318
Template-Type: ReDIF-Article 1.0
Author-Name: Darold Barnum
Author-X-Name-First: Darold
Author-X-Name-Last: Barnum
Author-Name: John Gleason
Author-X-Name-First: John
Author-X-Name-Last: Gleason
Author-Name: Brendon Hemily
Author-X-Name-First: Brendon
Author-X-Name-Last: Hemily
Title: Using panel data analysis to estimate confidence intervals for the DEA efficiency of individual decision making units
Abstract:
This article demonstrates a methodology using panel data analysis to
estimate confidence intervals for the data envelopment analysis efficiency
of individual decision making units (DMUs), and the statistical
significance of trends in individual DMU efficiency. The procedure
accounts for stochastic variations of the inputs and outputs of the target
DMU as well as stochastic variations of the inputs and outputs of its
efficient benchmark peers. The procedure is demonstrated using 9 years of
data from 34 Canadian paratransit agencies.
Journal: Applied Economics
Pages: 3319-3326
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701493741
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493741
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3319-3326
Template-Type: ReDIF-Article 1.0
Author-Name: Zia Wadud
Author-X-Name-First: Zia
Author-X-Name-Last: Wadud
Author-Name: Daniel Graham
Author-X-Name-First: Daniel
Author-X-Name-Last: Graham
Author-Name: Robert Noland
Author-X-Name-First: Robert
Author-X-Name-Last: Noland
Title: A cointegration analysis of gasoline demand in the United States
Abstract:
Time-series estimation of gasoline demand elasticities often does not
take into account the possibility of nonstationarity in the underlying
data, which may render the parameter estimates spurious. Studies have
shown that the time trending variables used to explain gasoline demand
could be difference stationary and therefore, may require cointegration
analysis to assess the relationship among the trending variables. In this
work we use the cointegration technique to derive long-run and short-run
demand elasticities of noncommercial gasoline consumption using
time-series data for the USA from 1949 to 2004. We also attempt to
incorporate the presence of a structural break in the data generation
process of the time trending variables. Our results show that the
consumption of gasoline and lifetime income have a long-term stable
relationship after the second oil shock of 1978. Prior to the first oil
shock of 1973, no such long-run relationship could be established through
cointegration.
Journal: Applied Economics
Pages: 3327-3336
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701477306
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701477306
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3327-3336
Template-Type: ReDIF-Article 1.0
Author-Name: Erik Dietzenbacher
Author-X-Name-First: Erik
Author-X-Name-Last: Dietzenbacher
Author-Name: Alex Hoen
Author-X-Name-First: Alex
Author-X-Name-Last: Hoen
Author-Name: Bart Los
Author-X-Name-First: Bart
Author-X-Name-Last: Los
Author-Name: Jan Meist
Author-X-Name-First: Jan
Author-X-Name-Last: Meist
Title: International convergence and divergence of material input structures: an industry-level perspective
Abstract:
This article analyses whether international material input structures
have converged or diverged over time. Pooled variances for 25 industries
were obtained from OECD input-output tables in constant prices for nine
countries over the period 1971-1990. It is found that high-tech industries
were mainly characterized by divergence of material input structures,
whereas convergence was found for many low-tech, more mature industries.
In line with studies on (labour) productivity growth rates, convergence of
material input structures was prevalent in the 1970s, while divergence
dominated in the 1980s.
Journal: Applied Economics
Pages: 3337-3344
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701439355
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701439355
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3337-3344
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Egger
Author-X-Name-First: Peter
Author-X-Name-Last: Egger
Author-Name: Stephan Gruber
Author-X-Name-First: Stephan
Author-X-Name-Last: Gruber
Author-Name: Michael Pfaffermayr
Author-X-Name-First: Michael
Author-X-Name-Last: Pfaffermayr
Title: The law of one price: conditional convergence evidence from disaggregated data
Abstract:
This article contributes to the literature on the Law of One Price (LOP)
and absolute Purchasing Power Parity (PPP) in two ways. First, it uses a
novel set of PPP data from the International Comparison Programme for OECD
countries and 195 internationally comparable products from 1980 to 1996.
Second, it derives and applies a test of conditional σ-convergence,
which does not require long-time spans or high frequency data. Between
1990 and 1996 for 10 out of 23 countries, a significant reduction in the
variance of the deviations from LOP is found for tradeables, but none in
case of nontradeables. For the former, the deviations from LOP close out
at half-lives between 2.2 and 6.3 years. However, there are also
persistent country-specific deviations from LOP parities.
Journal: Applied Economics
Pages: 3345-3357
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701426584
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701426584
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3345-3357
Template-Type: ReDIF-Article 1.0
Author-Name: Nissim Ben David
Author-X-Name-First: Nissim Ben
Author-X-Name-Last: David
Title: Efficiency aspects of increasing inheritance taxes while decreasing income taxes
Abstract:
This article tries to shed some light on the economic efficiency aspects
of a tax reform that would increase inheritance taxes while decreasing
income taxes. An analysis of labour market decisions following the
activation of such a reform is presented. An international comparison of
inheritance tax collection shows that almost all industrial countries
impose an inheritance tax. However, government revenue from inheritance
and gift taxes in Europe is lower than 1% of GDP and is very low in the
United States as well. Applying the proposed reform could increase work
hours and delay retirement decisions.
Journal: Applied Economics
Pages: 3359-3366
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701416411
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701416411
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3359-3366
Template-Type: ReDIF-Article 1.0
Author-Name: D. W. Kreutzer
Author-X-Name-First: D. W.
Author-X-Name-Last: Kreutzer
Title: Risk premiums and optimal combat-force levels in an all-volunteer army
Abstract:
Using a straight-forward and intuitive model of individual risk-wealth
tradeoffs, we posit a labour market where a firm's total wage bill
declines as it increases employment. Using value of statistical life
estimates from Viscusi and Aldy (2003) and Mrozek and Taylor (2002), we
analyze the market for security personnel in Iraq for both the US military
and a private contractor. We conclude that the US military's marginal cost
of labour is about $8000 less than the wage and that the marginal cost for
the private contractor may actually be negative.
Journal: Applied Economics
Pages: 3367-3373
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701416403
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701416403
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3367-3373
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio David
Author-X-Name-First: Antonio
Author-X-Name-Last: David
Title: Are price-based capital account regulations effective in developing countries?
Abstract:
In this article, we evaluate the effectiveness of policy measures adopted
by Chile and Colombia aiming to mitigate the deleterious effects of
pro-cyclical capital flows. In the case of Chile, according to our GMM
analysis, capital controls succeeded in reducing net short-term capital
flows, but did not affect long-term flows. As far as Colombia is
concerned, the regulations were capable of affecting total flows and also
long-term ones. In addition, our cointegration models indicate that the
regulations did not have a direct effect on the real exchange rate in the
Chilean case. Nonetheless, the model used for Colombia did detect a direct
impact of the capital controls on the real exchange rate. Therefore, our
results do not seem to support the idea that those regulations were easily
evaded.
Journal: Applied Economics
Pages: 3375-3388
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701367689
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701367689
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3375-3388
Template-Type: ReDIF-Article 1.0
Author-Name: Mei-Hui Wang
Author-X-Name-First: Mei-Hui
Author-X-Name-Last: Wang
Author-Name: Tai-Hsin Huang
Author-X-Name-First: Tai-Hsin
Author-X-Name-Last: Huang
Title: Threshold effects of financial status on the cost frontiers of financial institutions in nondynamic panels
Abstract:
This article applies Hansen's (1999, 2000) threshold regression model to
estimate translog cost frontiers in the hope of shedding light on the
banking industry's production processes and the extent of its Technical
Efficiency (TE). The threshold technique allows for the existence of
multiple technologies of production, distinguished by an exogenous
threshold variable. Strong evidence of multiple technologies is found in
the industry irrespective of which financial indicator, as constructed by
factor analysis, defines the threshold variable. Cost savings and scale
economies among the various underlying technologies are compared herein.
We also highlight the differences between the threshold results and the
conventional cost frontier.
Journal: Applied Economics
Pages: 3389-3401
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840802600079
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600079
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3389-3401
Template-Type: ReDIF-Article 1.0
Author-Name: Kangsik Choi
Author-X-Name-First: Kangsik
Author-X-Name-Last: Choi
Title: Conformism, peer pressure and adverse selection
Abstract:
To examine the effects of peer pressure in adverse selection problem, we
define a peer pressure function that represents the psychological costs
and incorporate it into the agent's utility function. Based on these
assumptions, the efficient agent who has conformity preference produces
less outputs than the first-best level, while the inefficient agent
produces more than the second-best level of standard adverse selection
output when the agents feel peer pressure among themselves. Although the
production gap between the utility functions under peer pressure narrows,
the gap of the ex post information rent goes wider as the information rent
of efficient agents increases. Our theoretical results are consistent with
some empirical/experimental findings.
Journal: Applied Economics
Pages: 3403-3409
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701392877
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701392877
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3403-3409
Template-Type: ReDIF-Article 1.0
Author-Name: Grace Lordan
Author-X-Name-First: Grace
Author-X-Name-Last: Lordan
Title: Considering endogeneity and heterogeneity-a hierarchical random parameters approach to measuring efficiency
Abstract:
Modelling efficiency in healthcare with stochastic production frontiers
(SPF) is complicated because of the immeasurable elements, quality of care
and casemix as well as complex data structures. This analysis considers a
SPF approach to estimating efficiencies for organizations in the Republic
of Ireland that supply GP services outside of normal working hours. These
organizations are run out of a number of primary care centres. The daily
payroll for the centre is the output in the SPF and the services offered
by these centres enter the production function as inputs. It is argued
that these services are exogenous variables and are determined by patient
characteristics and reported conditions and not the staff within the
centre. A characteristic of the data used is a two-tier structure
emanating from a centre lying within a co-op. To account for this tier
structure the analysis considers a random parameters approach. The
analysis also considers proxies for quality of care and casemix and
incorporates them into the SPF. The sensitivity of efficiency values to
the excluding the random parameters, quality of care and casemix variables
is examined by estimating three reduced forms of the model which ignore
each of these elements.
Journal: Applied Economics
Pages: 3411-3423
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701426592
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701426592
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3411-3423
Template-Type: ReDIF-Article 1.0
Author-Name: Haoming Liu
Author-X-Name-First: Haoming
Author-X-Name-Last: Liu
Author-Name: Yohanes Riyanto
Author-X-Name-First: Yohanes
Author-X-Name-Last: Riyanto
Title: Ownership of property-rights and the allocation of talents
Abstract:
Under the reserve-clause system that assigns the property-rights on the
Major League Baseball players' services to teams, player transfers are
negotiated between teams without the involvement of players. In contrast,
under the current free-agency system, players with free-agent status
negotiate directly with potential suitors. Thus, the system assigns the
property-rights to players. Using data extracted from the Baseball Archive
(http://baseball1.com), this article examines the effect of the change in
the property-rights assignment on the allocation of talents across teams.
We find that the change increased large-market teams' shares of veteran
all-star players and the concentration of senior players.
Journal: Applied Economics
Pages: 3425-3436
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701392869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701392869
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3425-3436
Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Acosta-Gonzalez
Author-X-Name-First: Eduardo
Author-X-Name-Last: Acosta-Gonzalez
Author-Name: Julian Andrada-Felix
Author-X-Name-First: Julian
Author-X-Name-Last: Andrada-Felix
Author-Name: Fernando Fernandez-Rodriguez
Author-X-Name-First: Fernando
Author-X-Name-Last: Fernandez-Rodriguez
Title: Estimating time-varying variances and covariances via nearest neighbour multivariate predictions: applications to the NYSE and the Madrid Stock Exchange Index
Abstract:
In this article, we present a technique to obtain the time-varying
covariance matrix for several time series for nearest neighbour
predictors. To illustrate the use of this technique, we analyse the
time-varying variances and correlations between the daily returns on two
equity stock market indexes, the New York Stock Exchange and the Madrid
Stock Exchange Index.
Journal: Applied Economics
Pages: 3437-3445
Issue: 26
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701439371
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701439371
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Handle: RePEc:taf:applec:v:41:y:2009:i:26:p:3437-3445
Template-Type: ReDIF-Article 1.0
Author-Name: O. de Bandt
Author-X-Name-First: O.
Author-X-Name-Last: de Bandt
Author-Name: C. Bruneau
Author-X-Name-First: C.
Author-X-Name-Last: Bruneau
Author-Name: W. El Amri
Author-X-Name-First: W.
Author-X-Name-Last: El Amri
Title: Convergence in household credit demand across euro area countries: evidence from panel data
Abstract:
This article contributes to the literature on the convergence of
financial systems in the euro area by estimating household credit demand
in individual countries. Using the ARDL framework advocated notably by
Pesaran et al. (1999), the article provides evidence on the convergence of
long-run credit demand determinants (interest rates, investment and house
prices) in the largest euro area countries, while short run-dynamics
remain heterogenous across countries. The article also demonstrates that
the equation uncovers demand rather than supply behaviour.
Journal: Applied Economics
Pages: 3447-3462
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701493774
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493774
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3447-3462
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Seaton
Author-X-Name-First: Jonathan
Author-X-Name-Last: Seaton
Title: A nonparametric revealed preference test of optimal intra-firm resource allocation
Abstract:
The collective rationality hypothesis initiated by Chiappori (1988a) and
applied by Seaton (1997, 2001) for a two-person household is used to
distinguish the organizational behaviour of firms. Firms produce
satisfaction to groups as traditional managerial and early behavioural
theories of the firm of Williamson, Baumol and Marris suggest, as well as
more modern principle agent models. Under certain conditions, intra-firm
bargaining leads to a Pareto optimal outcome. What makes this work an
important contribution is that it identifies a set of nonvacuous testable
restrictions to empirically detect if firm-level data satisfy Pareto
optimal behaviour for the main decision makers in the organization.
Journal: Applied Economics
Pages: 3463-3476
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701537836
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537836
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3463-3476
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Jarrett
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Jarrett
Author-Name: Zhenzhen Sun
Author-X-Name-First: Zhenzhen
Author-X-Name-Last: Sun
Title: Daily variation, capital market efficiency and predicting stock returns for the Hong Kong and Tokyo exchanges
Abstract:
Studying capital market efficiency is important because result may infer
that there are predictable properties of the time series of prices of
traded securities on organized markets. We examine the weak form of the
efficient markets hypothesis to indicate its usefulness in terms of the
results of this study. Furthermore, this study of individual securities
prices of traded securities on the organized markets of Hong Kong and
Japan corroborate previous findings of studies of individual stocks and
market indexes both in Asian nations, the United States and other stock
exchanges in the United Kingdom and Europe. Daily patterns are present in
the times series of securities prices. You will note also, that the models
identified reflect the returns on individual firms listed on the two of
the three largest Asian Stock Exchanges.
Journal: Applied Economics
Pages: 3477-3482
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701493782
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493782
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3477-3482
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Jacobs
Author-X-Name-First: Jan
Author-X-Name-Last: Jacobs
Author-Name: Gerard Kuper
Author-X-Name-First: Gerard
Author-X-Name-Last: Kuper
Author-Name: Daan van Soest
Author-X-Name-First: Daan
Author-X-Name-Last: van Soest
Title: On the effect of high energy prices on investment
Abstract:
Empirical analyses of firm behaviour typically assume that there is a
stable relationship between investment on the one hand and changes in the
relative prices of inputs, output demand and other determinants on the
other hand. However, because of the lumpy nature and irreversibility of
investments and the presence of uncertainty about future economic
developments, a specific percentage change in relative prices and output
demand may not always lead to the same percentage change in capital
stocks. That means that different regimes may exist in investment
behaviour. We test whether such regimes exist using high-quality data on
eight manufacturing industries in the Netherlands. Three different regimes
can be identified that are characterized by differences in the relative
input price levels and we find that if relative prices take on extreme
values, the propensity to adjust the scale of production to changes in
demand is very low.
Journal: Applied Economics
Pages: 3483-3490
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701537794
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537794
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3483-3490
Template-Type: ReDIF-Article 1.0
Author-Name: Bing-Xuan Lin
Author-X-Name-First: Bing-Xuan
Author-X-Name-Last: Lin
Author-Name: Chen-Miao Lin
Author-X-Name-First: Chen-Miao
Author-X-Name-Last: Lin
Author-Name: Stephen Smith
Author-X-Name-First: Stephen
Author-X-Name-Last: Smith
Title: Who bets against hedgers and how much they trade? A theory and empirical tests
Abstract:
This article provides a simple equilibrium model of a futures market.
Since the futures market is a zero sum game, some firms will, in
equilibrium, end up being 'speculators' who bet against 'hedgers'. We show
it is firms that have high initial capital and/or poor production
opportunities that are the most likely candidates to bet against the
hedgers. In equilibrium, these groups earn a premium in order to provide
this insurance so that speculating increases value. We also provide some
results that imply an inverted U shaped relationship between trading
volume and the level of futures prices. Empirical evidence from the S&P
futures contract provides strong empirical support for this theoretical
result.
Journal: Applied Economics
Pages: 3491-3497
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701493766
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493766
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3491-3497
Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary
Author-X-Name-First: M.
Author-X-Name-Last: Ali Choudhary
Author-Name: Vasco Gabriel
Author-X-Name-First: Vasco
Author-X-Name-Last: Gabriel
Title: Is there really a gap between aggregate productivity and technology?
Abstract:
The important contribution by Basu and Fernald (2002) shows that, in
practice, there is a statistically significant gap between aggregate
productivity and technology that can be attributed to inefficient product
and labour markets. This is important, as it implies that the Solow
residual is an imperfect index for aggregate technology change. We take a
related approach and find that when we control for capacity utilization,
time varying markup and account for externalities between industries, by
employing a superior system estimator, the gap between the aggregate
productivity and technology is shown to narrow considerably.
Journal: Applied Economics
Pages: 3499-3503
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701537851
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537851
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3499-3503
Template-Type: ReDIF-Article 1.0
Author-Name: Fatima S. Al Shamsi
Author-X-Name-First: Fatima S.
Author-X-Name-Last: Al Shamsi
Author-Name: Hassan Aly
Author-X-Name-First: Hassan
Author-X-Name-Last: Aly
Author-Name: Mohamed El-Bassiouni
Author-X-Name-First: Mohamed
Author-X-Name-Last: El-Bassiouni
Title: Measuring and explaining the efficiencies of the United Arab Emirates banking system
Abstract:
Using newly collected data from a survey distributed to all banks in the
United Arab Emirates (UAE), this article measures economic efficiency in
the banking industry, namely allocative, technical, pure technical and
scale efficiency. Employing a nonparametric Data Envelopment Analysis
(DEA) approach, the study estimates the efficiency for a cross section of
the UAE banks in 2004. The results indicate that the dominant source of
inefficiency in the UAE banking is stemming from allocative inefficiency
rather than technical inefficiency. Furthermore, the main source of the
relatively small size, technical inefficiency in the UAE banking industry
is not the scale inefficiency but rather pure technical inefficiency. The
results further indicate that the UAE banks are able to use their input
resources more efficiently when they have more branches, and that newer
banks are performing better than older banks on average. Moreover, the
results also show that short experiences of employees affect efficiencies
negatively and government ownership tends to reduce efficiency (as the
government shares increase in the bank, the efficiency scores get lower).
Finally, the most interesting results have to do with finding higher
average efficiencies in banks that employ more women, more managers and
less national citizens of the UAE.
Journal: Applied Economics
Pages: 3505-3519
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840801964773
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964773
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3505-3519
Template-Type: ReDIF-Article 1.0
Author-Name: Belayet Hossain
Author-X-Name-First: Belayet
Author-X-Name-Last: Hossain
Author-Name: Ehsan Latif
Author-X-Name-First: Ehsan
Author-X-Name-Last: Latif
Title: Determinants of housing price volatility in Canada: a dynamic analysis
Abstract:
This article tries to identify the determinants of housing price
volatility and to examine the dynamic effects of these determinants on
volatility using quarterly data for Canada. The Generalized Autoregressive
Conditional Heteroskedastic (GARCH) and the Vector Autoregressive (VAR)
models have been employed to analyse possible time variation of the
housing price volatility and the interactions between the volatility and
the key macroeconomic variables. We find the evidence of time varying
housing price volatility for Canada. Our VAR, Granger causality and
variance decomposition (VDC) analyses demonstrate that housing price
volatility is affected significantly by gross domestic product (GDP)
growth rate, housing price appreciation rate and inflation. On the other
hand, volatility affects GDP growth rate, housing price appreciation and
volatility itself. The impulse response analysis reveals the asymmetric of
the positive and negative shocks. The findings of this article have
important implications, particularly for those seeking to develop
derivatives for housing market prices.
Journal: Applied Economics
Pages: 3521-3531
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701522861
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522861
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3521-3531
Template-Type: ReDIF-Article 1.0
Author-Name: A. L. Baldi-Delatte
Author-X-Name-First: A. L.
Author-X-Name-Last: Baldi-Delatte
Title: A counterfactual analysis of the Argentinian monetary transformation in 2002
Abstract:
A hard peg restored economic stability in Argentina during the nineties
but made it also vulnerable to real shocks in so far as the economy was
highly dollarized. A devaluation in 1998 in Brasil, its main partner,
damaged the Argentinian competitiveness and resulted in a fall in export
demand. There was a need for a real adjustment but removing the peg would
have implied large balance sheet effects and raised serious financial
issues. This article endeavours to learn a lesson about the aftermath of
hard peg regime from the Argentinian experience. It is based on a dynamic
macroeconomic model to assess the impact of three scenarios, already
suggested in the literature. Two hypothetical, a floating regime and
dollarization and one which was actually implemented in 2002, the
pesification of the whole economy. The simulations suggest that
pesification was the only scenario with unambiguous expansionary effects.
Journal: Applied Economics
Pages: 3533-3544
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701522879
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522879
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3533-3544
Template-Type: ReDIF-Article 1.0
Author-Name: S. Sookram
Author-X-Name-First: S.
Author-X-Name-Last: Sookram
Author-Name: P. K. Watson
Author-X-Name-First: P. K.
Author-X-Name-Last: Watson
Author-Name: F. Schneider
Author-X-Name-First: F.
Author-X-Name-Last: Schneider
Title: Characteristics of households in the informal sector of an emerging economy
Abstract:
Using the case study of Trinidad and Tobago, we investigate the
socio-economic, demographic and attitudinal characteristics of households
that participate in the informal sector of an emerging economy and their
perception of the risk of detection by tax authorities while doing so.
Data are gathered from a cross-sectional field survey covering 570
households. Results using multinomial logit and ordered probit models
suggest that households are motivated to participate in the informal
sector when members spend little time in formal sector activity, believe
that taxes are too high and their incomes are too low, have dependents to
support and believe that the resulting tax evasion will go undetected.
Their perception of the risk of detection by the tax authority is
determined largely by the income they earn in the formal sector and the
extent of government bureaucracy prevailing there.
Journal: Applied Economics
Pages: 3545-3559
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701493733
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701493733
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3545-3559
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Burton
Author-X-Name-First: Anthony
Author-X-Name-Last: Burton
Author-Name: Katherine Carson
Author-X-Name-First: Katherine
Author-X-Name-Last: Carson
Author-Name: Susan Chilton
Author-X-Name-First: Susan
Author-X-Name-Last: Chilton
Author-Name: W. George Hutchinson
Author-X-Name-First: W.
Author-X-Name-Last: George Hutchinson
Title: Why do people non-demand reveal in hypothetical double referenda for public goods?
Abstract:
Hypothetical contingent valuation surveys used to elicit values for
environmental and other public goods often employ variants of the
referendum mechanism due to the cognitive simplicity and familiarity of
respondents with this voting format. One variant, the double referendum
mechanism, requires respondents to state twice how they would vote for a
given policy proposal given their cost of the good. Data from these
surveys often exhibit anomalies inconsistent with standard economic models
of consumer preferences. There are a number of published explanations for
these anomalies, mostly focusing on problems with the second vote. This
article investigates which aspects of the hypothetical task affect the
degree of nondemand revelation and takes an individual-based approach to
identifying people most likely to non-demand reveal. A clear profile
emerges from our model of a person who faces a negative surplus i.e. a net
loss in the second vote and invokes non self-interested, non financial
motivations during the decision process.
Journal: Applied Economics
Pages: 3561-3569
Issue: 27
Volume: 41
Year: 2009
X-DOI: 10.1080/00036840701537802
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537802
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Handle: RePEc:taf:applec:v:41:y:2009:i:27:p:3561-3569
Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Sekkel
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Sekkel
Author-Name: Denisard Alves
Author-X-Name-First: Denisard
Author-X-Name-Last: Alves
Title: The economic determinants of the Brazilian nominal term structure of interest rates
Abstract:
The purpose of this study is to identify the effects of monetary policy
and macroeconomic shocks on the dynamics of the Brazilian term structure
of interest rates. We estimate a near-VAR model under the identification
scheme proposed by Christiano et al. (1996, 1999). The results resemble
those of the US economy: monetary policy shocks that flatten the term
structure of interest rates. We find that monetary policy shocks in Brazil
explain a significantly larger share of the dynamics of the term structure
than in the USA. Finally, we analyse the importance of standard
macroeconomic variables (e.g. GDP, inflation and measure of country risk)
to the dynamics of the term structure in Brazil.
Journal: Applied Economics
Pages: 1-10
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579226
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579226
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow
Author-X-Name-First: Michael
Author-X-Name-Last: Marlow
Title: The influence of private school enrollment on public school performance
Abstract:
School choice reform refers to changes that allow parents greater freedom
to choose schools for their children. School choice reform is contentious
because it fundamentally alters the environment in which public and
private schools operate and could result in significant changes for both
demanders and suppliers of education. This article develops a model of
public education with imperfect exit to predict how private school
enrollment influences performance of public schools. Empirical evidence
from data on all private and public schools in California provides
substantial support for the hypothesis that public school test scores are
inversely related to private school enrollments and charter school
enrollments when private and charter schooling reflects exiting by parents
unhappy with local public schools. Implications regarding how expanded
private school choice might influence public school performance in
California and elsewhere are discussed.
Journal: Applied Economics
Pages: 11-22
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701564418
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564418
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:11-22
Template-Type: ReDIF-Article 1.0
Author-Name: Vera Lucia Fava
Author-X-Name-First: Vera Lucia
Author-X-Name-Last: Fava
Title: Price dispersion and price indexes
Abstract:
The traditional theory of price index numbers is based on the law of one
price. But in the real world, we frequently observe the existence of an
equilibrium price dispersion instead of one price of equilibrium. This
article discusses the effects of price dispersion on two price indexes:
the cost of living index and the consumer price index. With price
dispersion and consumer searching for the lowest price, these indexes
cannot be interpreted as deterministic indicators, but as stochastic
indicators, and they can be biased if price dispersion is not taken into
account. A measure for the bias of the consumer price index is proposed
and the article ends with an estimation of the bias based on data obtained
from the consumer price index calculated for the city of Sao Paulo,
Brazil, from January 1988 through December 2004. The period analysed is
very interesting, because it exhibits different inflationary environments:
high levels and high volatility of the rates of inflation with great price
dispersion until July 1994 and low and relatively stable rates of
inflation with prices less dispersed after August 1994.
Journal: Applied Economics
Pages: 23-36
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579168
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579168
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:23-36
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Robson
Author-X-Name-First: Paul
Author-X-Name-Last: Robson
Author-Name: Robert Bennett
Author-X-Name-First: Robert
Author-X-Name-Last: Bennett
Title: Paying fees for government business advice: an assessment of Business Link experience
Abstract:
Business Link (BL) in Britain provides a unique opportunity to examine a
government policy support to small firms which has targeted fee income as
a major part of its management objectives in order to increase the 'sense
of value' of the services offered. This article examines the influence of
fees on client impact and satisfaction. It finds that fees have no
significant relationship with client satisfaction or impact. Government
targets and manager/advisor policies have, therefore, been wrong to pursue
an explicit fee-based targeting strategy. Instead, satisfaction and impact
are most significantly influenced by the character of the BL provider,
being significantly higher for franchises managed by chambers of commerce
and other agents, and being poorer for independent stand-alone providers.
Service type has a significant influence on the propensity to charge a fee
and on service impact. Small- and medium-sized enterprises characteristics
have little influence on client evaluations. The policy implication is
that advisors should focus on what they do best and can quality assure; in
other cases, they should use referral to other professional advisors. The
scope to raise fees from government advice services is, therefore,
opportunistic and limited, and should not be incentivized.
Journal: Applied Economics
Pages: 37-48
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579184
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579184
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:37-48
Template-Type: ReDIF-Article 1.0
Author-Name: Takashi Ishida
Author-X-Name-First: Takashi
Author-X-Name-Last: Ishida
Author-Name: Noriko Ishikawa
Author-X-Name-First: Noriko
Author-X-Name-Last: Ishikawa
Author-Name: Mototsugu Fukushige
Author-X-Name-First: Mototsugu
Author-X-Name-Last: Fukushige
Title: Impact of BSE and bird flu on consumers' meat demand in Japan
Abstract:
In this article, we investigate the impact of BSE and bird flu on
consumers' meat demand in Japan by using the 'almost ideal' demand system.
The BSE and bird flu scares brought about a fall in demand for beef and
chicken, respectively, and an upturn in demand for pork and fishery
products, which are substitutes for beef and chicken in Japan. We also
find that the bird flu outbreak had no impact on the market share for
beef. This suggests that BSE had a larger impact on consumers' meat demand
than did bird flu. Our empirical results also show that BSE has had a
persistent impact whereas, bird flu has not. These differences might
depend on the characteristics of each disease, such as the incubation
period, cure rate and infection risk.
Journal: Applied Economics
Pages: 49-56
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701564392
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564392
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:49-56
Template-Type: ReDIF-Article 1.0
Author-Name: Rabindra Bhandari
Author-X-Name-First: Rabindra
Author-X-Name-Last: Bhandari
Author-Name: Kamal Upadhyaya
Author-X-Name-First: Kamal
Author-X-Name-Last: Upadhyaya
Title: Panel data evidence of the impact of exchange rate uncertainty on private investment in South-east Asia
Abstract:
This article examines the impact of real exchange rate uncertainty on the
private investment in South-east Asia using panel data from four countries
of the region namely, Indonesia, Malaysia, the Philippines and Thailand.
Annual time series data from 1972 to 2001 is used. Before carrying out the
estimation the time series properties of the data are diagnosed and an
error correction model is developed and estimated. The model is estimated
using both the fixed effects and the random effects estimators. The
estimated results from both the estimations, suggest that the real
exchange rate uncertainty had a negative effect on the private investment
in that region.
Journal: Applied Economics
Pages: 57-61
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701564400
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564400
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:57-61
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Gripaios
Author-X-Name-First: Peter
Author-X-Name-Last: Gripaios
Author-Name: Paul Bishop
Author-X-Name-First: Paul
Author-X-Name-Last: Bishop
Author-Name: Steven Brand
Author-X-Name-First: Steven
Author-X-Name-Last: Brand
Title: A lottery within a lottery? An examination of the distribution of lottery funds in England
Abstract:
The UK National Lottery has been in operation since 1994. An examination
of the regional distribution of awards per head of population suggests
marked spatial disparities with London doing particularly well and
Scotland, Northern Ireland, Wales and the North East faring much better
than other regions. Such disparities also exist at English Local Authority
level with London and some major provincial centres doing much better than
more rural authorities. Such inequalities may give grounds for concern,
given that they appear to replicate those for other types of Government
spending. The results of an empirical model designed to explain the
spatial distribution of awards suggest that, in addition to a London
effect, levels of deprivation have a positive impact. Another important
explanatory variable which has a positive impact on lottery funding is the
qualifications of residents which might plausibly reflect the quality of
lottery bids received from an area. However, once these factors are taken
account of, there is little evidence that rural areas fare badly.
Journal: Applied Economics
Pages: 63-71
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701564426
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564426
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:63-71
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Title: Time-series econometrics of growth-models: a guide for applied economists
Abstract:
This article examines the use of specifications based on the endogenous
and exogenous growth-models for country-specific growth policies. It is
suggested that time-series models based on the Solow (1956) exogenous
growth-model are useful and they can also be extended to capture the
permanent growth-effects of some variables. Our empirical results, with
data from Fiji, show that trade openness and human capital have
significant and permanent growth-effects. However, these growth-effects
are small and eventually converge over time.
Journal: Applied Economics
Pages: 73-86
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701564434
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564434
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:73-86
Template-Type: ReDIF-Article 1.0
Author-Name: Russel Cooper
Author-X-Name-First: Russel
Author-X-Name-Last: Cooper
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Title: Estimating components of ICT expenditure: a model-based approach with applicability to short time-series
Abstract:
This article develops a microeconomic model-based approach to estimation
of national information and communications technology expenditure that is
helpful when only very short time-series are available. The model
specification incorporates parameters for network effects and national
e-readiness. Finally, the model allows for observed nonhomotheticity and
'noise' found in sample data, with the latter attributed to
country-specific influences.
Journal: Applied Economics
Pages: 87-96
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701564442
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701564442
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:87-96
Template-Type: ReDIF-Article 1.0
Author-Name: Ho Shirley
Author-X-Name-First: Ho
Author-X-Name-Last: Shirley
Title: Social norms and emission tax multiple equilibria in adopting pollution abatement device
Abstract:
The effect of social norm is addressed in an adoption game, where an
emission tax is used to motivate oligopolistic firms to adopt a pollution
abatement device. We ask if the intrinsic motivation from social norm
alone can motivate firms to participate in adoption. The multiple
equilibria in the adoption game indicates two possibilities: this
intrinsic motivation may or may not enhance adoption. The existing
literature on equilibrium selection further suggests that the most likely
outcome is that it cannot enhance adoption. Next, by keeping the
assumption of symmetry, we show that if cooperation is an option for
firms, then the presence of two coordination effects (social norm on
adoption and cooperation benefits on output) will result in the existence
of asymmetric adoptions.
Journal: Applied Economics
Pages: 97-105
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701537844
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701537844
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:97-105
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Szu-Wen Chou
Author-X-Name-First: Eric Szu-Wen
Author-X-Name-Last: Chou
Title: Can socialism in internal capital markets occur in the absence of managerial rent seeking?
Abstract:
Socialism in internal capital markets (SICM) is the phenomenon whereby
multi-division firms underinvest in high-profit segments and overinvest in
low-profit segments. This article modifies and extends the Scharfstein and
Stein (2000) model that explains SICM. The major modification is to
abstract from rent-seeking behaviour - a central ingredient that is used
by most SICM models and has the side effect of overturning SICM when the
underlying rent-seeking game is slightly perturbed. It is shown that when
division managers' private benefits are not exactly propotional to their
division's production profit, as assumed by Scharfstein and Stein (2000),
SICM arises due to the CEO's incentive to extract gain from the trade of
capital between his division managers by equalizing their marginal private
benefits, instead of accommodating rent-seeking. Furthermore, we show that
'diversification discounts' exist, increase in diversity and decrease in
CEO ownership. The results are robust to endogenizing the investors'
choice of the total capital provided to the firm, which allows the
conditions for aggergate underinvestment or overinvestment to be
determined.
Journal: Applied Economics
Pages: 107-120
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579150
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579150
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:107-120
Template-Type: ReDIF-Article 1.0
Author-Name: Shyh-Wei Chen
Author-X-Name-First: Shyh-Wei
Author-X-Name-Last: Chen
Title: Testing the hypothesis of market efficiency in the Taiwan-US forward exchange market since 1990
Abstract:
This article examines the applicability of the hypothesis of market
efficiency in Taiwan's foreign exchange market using daily data. Instead
of linear regression-based models, we consider the possibility that the
true data generating process may come from two different distributions,
and we employ the Markov Switching approach to analyse this. From the
results of the two-state Markov Switching model, we define State 1 as the
efficient state and State 2 as the inefficient one. Only the 30-day
forward rate is able to differentiate between the two states. Based on the
unconditional probabilities from the Markov switching model, we also find
that the 30-day forward rate has a 70% probability in the efficient state,
which indicates that 70% of all speculators fully extract information when
predicting future spot rates, while 30% of all investors do not.
Journal: Applied Economics
Pages: 121-132
Issue: 1
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579200
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579200
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Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:121-132
Template-Type: ReDIF-Article 1.0
Author-Name: Sheila Amin Gutierrez de Pineres
Author-X-Name-First: Sheila Amin Gutierrez de
Author-X-Name-Last: Pineres
Author-Name: Manuel Cantavella-Jorda
Author-X-Name-First: Manuel
Author-X-Name-Last: Cantavella-Jorda
Title: Short-run effects of devaluation: a disaggregated analysis of Latin American exports
Abstract:
Conventional models examining the relationship between devaluation and
exports are based on exchange rate pass through. These suggest that after
devaluation exports become cheaper, relative to other exports, and the
growing export market is posited to stimulate the economy. If devaluation
has a differential effect across commodities, countries can expect
different results depending on their portfolios. Therefore, any accurate
analysis of the effects of devaluation must take into account the
components of a country's export portfolio. The pooled time series
estimation for Latin American countries reveals a negative short-run
relationship between real devaluation and export growth for most exports
at a disaggregated level. The results of this study are far reaching as
they suggest that more targeted policies are better suited to stimulate
exports.
Journal: Applied Economics
Pages: 133-142
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579259
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579259
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:133-142
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Preckel
Author-X-Name-First: Paul
Author-X-Name-Last: Preckel
Author-Name: J. A. L. Cranfield
Author-X-Name-First: J. A. L.
Author-X-Name-Last: Cranfield
Author-Name: Thomas Hertel
Author-X-Name-First: Thomas
Author-X-Name-Last: Hertel
Title: A modified, implicit, directly additive demand system
Abstract:
A recently developed demand system, nicknamed AIDADS (An Implicit,
Directly Additive Demand System), offers an approach to capturing consumer
preferences across a wide range of expenditure levels. AIDADS generalizes
the LES by assuming marginal budget shares vary with utility and hence
with expenditure. Like the LES, AIDADS includes subsistence parameters
that define minimum consumption levels. Here we present a modified AIDADS
(MAIDADS) that replaces the constant subsistence parameters with functions
that also vary with utility; these transformed subsistence levels are
referred to as minimum consumption quantities. This model is applied to
the 1996 International Consumption Project data. As these data span a wide
range of expenditure levels, MAIDADS offers a viable alternative for the
estimation of a 'global demand system'. Results suggest minimum
consumption quantities for staple grains, livestock, other food products,
alcohol and tobacco, clothing and footwear and transport and transport
services vary with expenditure, while those for rent and fuel and
household furnishings and operations are zero and invariant across
expenditure levels. Only the minimum consumption quantity for staple
grains declines with expenditure.
Journal: Applied Economics
Pages: 143-155
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701591361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701591361
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:143-155
Template-Type: ReDIF-Article 1.0
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Socio-economic characteristics and obesity in underdeveloped economies: does income really matter?
Abstract:
Available evidence suggests that overweight and obesity prevalence is
increasing worldwide at an alarming rate in both developed and developing
countries. This study focuses on the determinants of overweight in mothers
and children, using a unique dataset collected in urban Accra, in Ghana.
The findings show that mothers' education, employment status and ethnicity
significantly exert influence on the generation of body weight. In
particular, those who attained secondary and tertiary education had lower
body mass indices and were much less likely to be overweight or obese,
lending support to the notion that more educated women normally have
better health knowledge and are more likely to consume healthy foods and
also engage in physical exercises that help to control weight gain.
Mother's education was also found to exert a negative and significant
impact on the weight status of children. Furthermore, household
expenditure was found to exert a positive and significant impact on the
probability of a mother being overweight or obese, but no significant
impact on the probability of a child being overweight.
Journal: Applied Economics
Pages: 157-169
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604313
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604313
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:157-169
Template-Type: ReDIF-Article 1.0
Author-Name: Ricard Gil
Author-X-Name-First: Ricard
Author-X-Name-Last: Gil
Title: An empirical investigation of the Paramount antitrust case
Abstract:
Production patterns in the US movie industry changed drastically between
1940 and 1960. During these decades, a major event took place: the
Paramount antitrust case was resolved by the US Supreme Court in 1948. As
a result, the five largest studios (MGM, Paramount, 20th Century Fox,
Warner Brothers and RKO) were forced to vertically disintegrate and
separate production and distribution from exhibition. The Supreme Court
also banned these and three other studios (Columbia, Universal and United
Artists) from using block booking as contractual practice. In this
article, I examine how this antitrust ruling affected the movie industry.
Journal: Applied Economics
Pages: 171-183
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604404
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604404
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:171-183
Template-Type: ReDIF-Article 1.0
Author-Name: P. Holmes
Author-X-Name-First: P.
Author-X-Name-Last: Holmes
Author-Name: A. Hunt
Author-X-Name-First: A.
Author-X-Name-Last: Hunt
Author-Name: I. Stone
Author-X-Name-First: I.
Author-X-Name-Last: Stone
Title: An analysis of new firm survival using a hazard function
Abstract:
A unique data set is used to provide a detailed examination of the
survival of newly established manufacturing firms in north-east England.
Using data on 781 firms established between 1973 and 2001, log-logistic
hazard models are estimated separately for (i) micro-enterprises and (ii)
small and medium establishments (SMEs). Both micro-enterprises and SMEs
show clear evidence of positive duration dependence, followed by negative
duration dependence. We find the two firm types are differentially
affected by firm-specific and macro-economic variables. Increases in
initial plant size impact negatively on micro-enterprise survival and
positively on SME survival.
Journal: Applied Economics
Pages: 185-195
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579234
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579234
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:185-195
Template-Type: ReDIF-Article 1.0
Author-Name: Sanja Samirana Pattnayak
Author-X-Name-First: Sanja Samirana
Author-X-Name-Last: Pattnayak
Author-Name: Shandre Thangavelu
Author-X-Name-First: Shandre
Author-X-Name-Last: Thangavelu
Title: Economic liberalization and productivity for selected Indian manufacturing industries: a panel cointegration approach
Abstract:
This article estimates the long-run production function for a panel of
13Indian manufacturing industries for the period 1981 to 1998. To account
for nonstationarity and to avoid spurious regression problems, the panel
unit-roots tests as suggested by Im et al. (2003) and the panel
cointegration techniques as proposed by Pedroni (1999) were used. The
generalized methods of moments (GMM) estimation methodology as suggested
by Arellano and Bond (1991) and Blundell and Bond (2000), were used to
deal with the simultaneity bias introduced by measurement errors. Based on
the panel cointegration test, we found evidence of long-run production
relationship for all the selected industries. We also observe increasing
returns to scale in 3 out of 13 industries under study. However, comparing
the pre- and post-liberalization periods, there are improvements in total
factor productivity (TFP) in 9 out of 13 industries in the
post-liberalization period of 1991 to 1998. This clearly supports the
observations that there are significant economic improvements in the
recent Indian economic reforms.
Journal: Applied Economics
Pages: 197-209
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604321
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604321
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:197-209
Template-Type: ReDIF-Article 1.0
Author-Name: Hirokatsu Asano
Author-X-Name-First: Hirokatsu
Author-X-Name-Last: Asano
Title: Estimating irreversible investment with financial constraints: an application of switching regression models
Abstract:
This analysis investigates irreversible investment with financial
constraints. When investment is irreversible, zero investment can be
optimal and investment becomes lumpy. Because external funds are not a
perfect substitute for internal funds, financially constrained firms
invest differently than unconstrained firms. To incorporate both
irreversibility and financial constraints into estimations, the analysis
develops a switching regression model that depends on the real options
theory of capital investment. The analysis investigates three US
industries: the oil refining, communications equipment manufacturing and
semiconductor manufacturing industries. The analysis shows that internal
funds affect investment if a firm is financially constrained.
Journal: Applied Economics
Pages: 211-222
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579218
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579218
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:211-222
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Miralles-Marcelo
Author-X-Name-First: Jose Luis
Author-X-Name-Last: Miralles-Marcelo
Author-Name: Jose Luis Miralles-Quiros
Author-X-Name-First: Jose Luis
Author-X-Name-Last: Miralles-Quiros
Author-Name: Maria del Mar Miralles-Quiros
Author-X-Name-First: Maria del Mar
Author-X-Name-Last: Miralles-Quiros
Title: Intraday linkages between the Spanish and the US stock markets: evidence of an overreaction effect
Abstract:
This paper focuses on short-term information transmission between the US
stock market, properly the DOW index, and the main Spanish stock index,
IBEX-35, in its early and final hours. We follow the approaches of Lin,
Engle and Ito (1994), Susmel and Engle (1994) and Baur and Jung (2005) who
use a GARCH model to analyze the influence of the previous daytime and
overnight returns and volatility of the DOW upon the overnight returns and
daytime returns of the IBEX from Open-to-3:30 and from 3:30-to-Close. The
results suggest that the Spanish stock market usually has a low price
movement till Wall Street opens. Additionally, they indicate that the
Spanish market reacts quickly to the news, basically in the first four
minutes following the opening of the US market. Furthermore, we find the
existence of an overreaction effect during the two hours before the
closing of the Spanish market.
Journal: Applied Economics
Pages: 223-235
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579192
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579192
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:223-235
Template-Type: ReDIF-Article 1.0
Author-Name: Zisimos Koustas
Author-X-Name-First: Zisimos
Author-X-Name-Last: Koustas
Author-Name: Jean-Francois Lamarche
Author-X-Name-First: Jean-Francois
Author-X-Name-Last: Lamarche
Title: Evidence of nonlinear mean reversion in the real interest rate
Abstract:
This article utilizes tests for a unit root that have power against
nonlinear alternatives to provide empirical evidence on the time series
properties of the ex-post real interest rate in the G7 countries. We find
that the unit root hypothesis can be rejected in the presence of a
nonlinear alternative motivated by theoretical literature on optimal
monetary policy rules. This represents a reversal of the results obtained
using standard linear unit-root and cointegration tests. Tests for
linearity reject this hypothesis for Canada, France, Italy and Japan for
which we estimate nonlinear models capturing the dynamics of the interest
rate. For these countries, ex-post real interest rates follow a nonlinear
model characterized by mean reversion and provide statistical evidence for
the Fisher effect.
Journal: Applied Economics
Pages: 237-248
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701579242
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701579242
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:237-248
Template-Type: ReDIF-Article 1.0
Author-Name: Isolde Woittiez
Author-X-Name-First: Isolde
Author-X-Name-Last: Woittiez
Author-Name: Edwin Van Gameren
Author-X-Name-First: Edwin
Author-X-Name-Last: Van Gameren
Title: The effect of care leave on burden and job performance
Abstract:
In this article the expected effects of the introduction of a fully paid
long-term care leave programme in the Netherlands are investigated. In
particular we are interested in the effects on perceived burden and job
performance. We analyse data from a survey among workers who care for a
person in their social circle for longer than two weeks. The caring
workers with a high perceived burden and intention to participate in the
programme were asked questions regarding the expected effects on burden.
An econometric model in which we account for these two potentially
nonrandom selection mechanisms is set up to analyse the expected reduction
in burden due to the intended take-up of care leave. As a result of the
introduction of the programme about 60% of the intended participants who
perceive a high burden expect a reduction in their burden. The relation
between burden and job performance shows that the programme would reduce
the number of caring workers who perform less precise in their job by
one-third. A modified version of the programme with more stringent
requirements than analysed in this article was introduced in The
Netherlands in 2005.
Journal: Applied Economics
Pages: 249-266
Issue: 2
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604347
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604347
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Handle: RePEc:taf:applec:v:42:y:2010:i:2:p:249-266
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Rajarshi Mitra
Author-X-Name-First: Rajarshi
Author-X-Name-Last: Mitra
Title: How sensitive is commodity trade flows between US and India to currency depreciation?
Abstract:
Previous studies that investigated the impact of real depreciation of the
rupee on Indian trade balance used aggregate trade data and provided no
support for real depreciation to be effective in improving India's trade
balance. In this article we disaggregate the Indian trade data by
commodity and consider the sensitivity of each industry's inpayments
(export value) and outpayments (import value) to real rupee-dollar
exchange rate. Annual data over the period of 1962 to 2004 from 40
industries that trade between the two countries as well as bounds testing
approach are used to show that while in half of the industries real
depreciation of rupee has short-run effects on inpayments and outpayments,
the short-run effects do not last into the long-run in majority of the
cases.
Journal: Applied Economics
Pages: 267-277
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604453
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604453
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:267-277
Template-Type: ReDIF-Article 1.0
Author-Name: W. Groot
Author-X-Name-First: W.
Author-X-Name-Last: Groot
Author-Name: H. M. van den Brink
Author-X-Name-First: H. M.
Author-X-Name-Last: van den Brink
Title: The effects of education on crime
Abstract:
In this article, we use a unique data set on criminal behaviour to
analyse the effects of education on offences and crimes committed. The
findings suggest that substantial savings on the social costs of crime can
be obtained by investing in education. We find that the probability of
committing crimes like shop lifting, vandalism and threat, assault and
injury decrease with years of education. The probability of committing tax
fraud, however, increases with years of education. We further find that
higher educated people have more permissive attitudes and social norms
towards criminal behaviour.
Journal: Applied Economics
Pages: 279-289
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604412
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604412
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:279-289
Template-Type: ReDIF-Article 1.0
Author-Name: Akbar Marvasti
Author-X-Name-First: Akbar
Author-X-Name-Last: Marvasti
Title: A welfare estimation of beach recreation with aggregate data
Abstract:
A single-site travel cost recreation demand model for a representative
agent visiting a beach is employed that uses an indirect utility function.
Alternative specifications of the expected demand function are estimated
with aggregate time-series data from a local beach park. The estimated
parameters are used to compute the value of the consumer surplus. The
recreational value of the park is expectedly sensitive to the functional
form used. Also, own-price and income elasticities for various functional
forms vary. The results from the Box-Cox procedure suggest that the
semi-log function is the most appropriate for the data used in this study.
Confidence intervals are calculated to deal with the reliability problem
of the consumer surplus estimates. An alternative algorithm, which assumes
omitted variable as the source of the error in the demand function, is
also presented.
Journal: Applied Economics
Pages: 291-296
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802498813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802498813
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:291-296
Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Granier
Author-X-Name-First: Laurent
Author-X-Name-Last: Granier
Author-Name: Sebastien Trinquard
Author-X-Name-First: Sebastien
Author-X-Name-Last: Trinquard
Title: Entry deterrence and mergers under price competition in pharmaceutical markets
Abstract:
After patent expirations in pharmaceutical markets, brand-name
laboratories are threatened by generic firms' entry. To fill the gap in
the theoretical literature on this topic, we study brand-name firms'
incentives either to deter entry, or to merge with the entrant. These
strategies are considered along with the possibility of the brand-name
firm producing its own generic drug, called a pseudo-generic drug. Using a
vertical differentiation model with Bertrand-Stackelberg competition, we
show that each strategy, merging and deterring entry, may be Nash
equilibrium, according to the generic firm's setup cost level and to the
rate of discount.
Journal: Applied Economics
Pages: 297-309
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604495
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604495
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:297-309
Template-Type: ReDIF-Article 1.0
Author-Name: Gerhard Reichmann
Author-X-Name-First: Gerhard
Author-X-Name-Last: Reichmann
Author-Name: Margit Sommersguter-Reichmann
Author-X-Name-First: Margit
Author-X-Name-Last: Sommersguter-Reichmann
Title: Efficiency measures and productivity indexes in the context of university library benchmarking
Abstract:
Data envelopment analysis (DEA) has attracted considerable attention
during the last few decades as an intuitively clear method for performance
assessment. Theoretical developments have taken turns with empirical
efficiency studies. In this paper we empirically analyse performance
differences across university libraries from different countries from a
cross-section and a longitudinal perspective. We use the Malmquist index
approach to disentangle environmental efficiency from technical efficiency
(TE) to highlight performance differences eventually induced by
environmental factors beyond the control of library management, as well as
to decompose productivity changes over time into changes in TE and changes
in technology. In our cross-section analysis we found that North American
(NA) libraries are more productive at higher input levels than the
European libraries from Germany and Austria at which we looked in this
contribution. Moreover, the largest NA libraries are still able to improve
performance, as the results of panel data analysis revealed.
Journal: Applied Economics
Pages: 311-323
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604511
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604511
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:311-323
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Evidence on PPP for selected Asian countries from a panel cointegration test with structural breaks
Abstract:
The goal of this article is to examine evidence for purchasing power
parity (PPP) for a panel of Asian countries, namely Malaysia, Thailand,
India, Pakistan, Sri Lanka and the Philippines. Our main contribution is
that for the first time in this literature we use a panel cointegration
test, developed by Westerlund (2006), which allows us to incorporate
multiple structural breaks. We find that using Gregory and Hansen's (1996)
residual-based test for cointegration and Pedroni's (1999) panel
cointegration test without structural breaks provide weak evidence of
cointegration between nominal exchange rates vis-a-vis the US dollar and
relative prices. However, when we use the Lagrange multiplier panel
structural break cointegration test we find strong evidence of panel
cointegration, providing evidence for PPP.
Journal: Applied Economics
Pages: 325-332
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604446
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604446
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:325-332
Template-Type: ReDIF-Article 1.0
Author-Name: David Scrogin
Author-X-Name-First: David
Author-X-Name-Last: Scrogin
Author-Name: Richard Hofler
Author-X-Name-First: Richard
Author-X-Name-Last: Hofler
Author-Name: Kevin Boyle
Author-X-Name-First: Kevin
Author-X-Name-Last: Boyle
Author-Name: J. Walter Milon
Author-X-Name-First: J.
Author-X-Name-Last: Walter Milon
Title: An efficiency approach to choice set formation: theory and application to recreational destination choice
Abstract:
An unresolved debate in behavioural choice research surrounds specifying
individual choice sets. To overcome the limitations of deterministic and
probabilistic approaches in a framework consistent with individual
optimizing behaviour, this study develops an efficient frontiers approach
to the choice set problem in the context of revealed preference
destination choice. Stochastic frontier models relating costly inputs to
utility generating outputs are estimated to measure the efficiency of
sites; choice sets are then formed by retaining sites that exceed
alternative efficiency thresholds. Choice set composition, site choice
efficiency and probability of selection and consumer surplus are evaluated
in the case of fishery site choice in Maine.
Journal: Applied Economics
Pages: 333-350
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604438
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604438
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:333-350
Template-Type: ReDIF-Article 1.0
Author-Name: Laurence Mathieu
Author-X-Name-First: Laurence
Author-X-Name-Last: Mathieu
Author-Name: Catherine Waddams Price
Author-X-Name-First: Catherine
Author-X-Name-Last: Waddams Price
Author-Name: Francis Antwi
Author-X-Name-First: Francis
Author-X-Name-Last: Antwi
Title: The distribution of UK personal income tax compliance costs
Abstract:
Governments are committed to reducing the regulatory burden on business
and individuals, while at the same time transferring many tasks from
bureaucrats. One such example is tax compliance where self-assessment (SA)
has raised concerns that such transfers may place a particularly heavy
burden on lower income and elderly taxpayers. This is the first study
since its introduction into the UK in 1996 of the regulatory burden, which
SA imposes on individuals. We identify both the total compliance burden
and its components for individuals who might be expected to incur high
compliance costs because they pay tax on nonbusiness employment income. We
use a specially designed questionnaire and find that within this group the
burden seems to have increased by less than 25%. Compliance costs are
regressive, but do not impinge disproportionately on the elderly. The
compliance burden is determined by income, occupation, education (but not
specifically in accounting subjects) and difficulty in attending to tax
affairs, indicating some possibilities for reducing these compliance
costs.
Journal: Applied Economics
Pages: 351-368
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604370
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604370
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:351-368
Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Bikker
Author-X-Name-First: Jacob
Author-X-Name-Last: Bikker
Author-Name: Laura Spierdijk
Author-X-Name-First: Laura
Author-X-Name-Last: Spierdijk
Author-Name: Pieter-Jelle van der Sluis
Author-X-Name-First: Pieter-Jelle
Author-X-Name-Last: van der Sluis
Title: What factors increase the risk of incurring high market impact costs?
Abstract:
This article applies quantile regression to assess the factors that
influence the risk of incurring high trading costs. Using data on the
equity trades of the world's second largest pension fund in the first
quarter of 2002, we show that trade timing, momentum, volatility and the
type of broker intermediation are the major determinants of the risk of
incurring high trading costs. Such risk is increased substantially by
either high or low momentum and by strong volatility. Moreover, agency
trades are substantially more risky in terms of trading costs than similar
principal trades. Finally, we show that the quantile regression model
succeeds well in forecasting future trading costs.
Journal: Applied Economics
Pages: 369-387
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604461
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604461
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:369-387
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Liang Yeh
Author-X-Name-First: Ming-Liang
Author-X-Name-Last: Yeh
Author-Name: Hsiao-Ping Chu
Author-X-Name-First: Hsiao-Ping
Author-X-Name-Last: Chu
Author-Name: Peter Sher
Author-X-Name-First: Peter
Author-X-Name-Last: Sher
Author-Name: Yi-Chia Chiu
Author-X-Name-First: Yi-Chia
Author-X-Name-Last: Chiu
Title: R&D intensity, firm performance and the identification of the threshold: fresh evidence from the panel threshold regression model
Abstract:
This article tests whether there is an optimal level of research and
development (R&D) intensity at which point a firm is able to maximize its
performance. An advanced panel threshold regression model is employed to
investigate the panel threshold effect of R&D intensity on firm
performance among publicly traded Taiwan information technology and
electronic firms. The results confirm that a single-threshold effect does
exist and show an inverted-U correlation between R&D intensity and firm
performance. This article demonstrates that it is possible to identify the
definitive level beyond which a further increase in R&D expenditure does
not yield proportional rewards. Some important policy implications emerge
from the findings.
Journal: Applied Economics
Pages: 389-401
Issue: 3
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604487
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604487
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Handle: RePEc:taf:applec:v:42:y:2010:i:3:p:389-401
Template-Type: ReDIF-Article 1.0
Author-Name: Chulho Jung
Author-X-Name-First: Chulho
Author-X-Name-Last: Jung
Author-Name: William Shambora
Author-X-Name-First: William
Author-X-Name-Last: Shambora
Author-Name: Kyongwook Choi
Author-X-Name-First: Kyongwook
Author-X-Name-Last: Choi
Title: Are stocks really riskier than bonds?
Abstract:
Conventional wisdom holds that stocks are riskier than bonds; thus when
the stock market becomes volatile, money flows from the stock market into
the perceived safe haven of the bond market. In this article, we find that
this notion is not necessarily accurate and might lead people to make
incorrect investment decisions. In fact, intermediate- and long-term bonds
are riskier than stocks when we measure risk by the coefficient of
variation. We examine a case where an inaccurate perception regarding the
relative riskiness of the two types of assets could play a part in what
appears to be short-sighted and potentially costly behaviour of investors
in financial markets.
Journal: Applied Economics
Pages: 403-412
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704386
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704386
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:403-412
Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Kasteridis
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Kasteridis
Author-Name: Murat Munkin
Author-X-Name-First: Murat
Author-X-Name-Last: Munkin
Author-Name: Steven Yen
Author-X-Name-First: Steven
Author-X-Name-Last: Yen
Title: Demand for cigarettes: a mixed binary-ordered probit approach
Abstract:
This study analyses the demand for cigarettes fitting observed zero
outcomes with a trivariate model consisting of an equation for the
starting smoking decision, an equation for the quitting decision, and an
equation that models the level of cigarettes consumed. Five competing
specifications are considered to explain level, with the ordered probit,
which accommodates pile-ups of counts in the dependent variable, providing
the best fit. Marginal effects of explanatory variables are calculated
providing strong evidence of race and gender differences in consumption
patterns. The estimated marginal effects are robust to alternative
categorizations of the level of cigarettes.
Journal: Applied Economics
Pages: 413-426
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704402
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704402
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:413-426
Template-Type: ReDIF-Article 1.0
Author-Name: David Dorn
Author-X-Name-First: David
Author-X-Name-Last: Dorn
Author-Name: Alfonso Sousa-Poza
Author-X-Name-First: Alfonso
Author-X-Name-Last: Sousa-Poza
Title: 'Voluntary' and 'involuntary' early retirement: an international analysis
Abstract:
Recent literature makes a distinction between 'voluntary' and
'involuntary' early retirement, where 'involuntary' early retirement
results from employment constraints rather than from a preference for
leisure relative to work. This article analyses 'voluntary' and
'involuntary' early retirement based on international microdata covering
19 industrialized countries. The results show that 'involuntary' early
retirement is particularly widespread in Continental Europe. Countries
facing economic recessions and having strict employment protection
legislation have higher shares of 'involuntary' retirements among early
retirees. Generous early retirement provisions of the social security
system do not only make 'voluntary' early retirement more attractive for
individuals, but also induce firms to push more employees to retire early.
Journal: Applied Economics
Pages: 427-438
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701663277
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701663277
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:427-438
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Lange
Author-X-Name-First: Ronald
Author-X-Name-Last: Lange
Title: Sources of regime switching in short-term interest rates for Canada
Abstract:
The purpose of this study is to identify sources of regime switching in
short-term interest rates for Canada. The choice of information variables
is based on three well-known hypotheses about interest rates: the
expectations hypothesis, the Fisher relationship, and the condition for
uncovered interest parity. The empirical framework consists of an
autoregressive distributive lag (ADL) model in error-correction form with
information spreads and a Markov regime-switching estimation methodology.
The models choose interest-rate regimes that are similar in many respects
to those found for the USA. The different regimes in Canada are driven by
movements in the monetary policy rate, the US short-term rate, and the
long-term yield. The monetary policy rate is found to trigger very large
changes in the short-term rate, responding one-for-one in the
high-variance regime and slightly less in the more 'normal' interest-rate
regime. Both the US short rate and long-term yield are also found to
trigger relatively large changes in short-term rates, but only in the
high-variance regime. Inflation, however, is not found to contain
additional information about regime switches in interest rates at the
short-term horizon.
Journal: Applied Economics
Pages: 439-454
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701630078
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701630078
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:439-454
Template-Type: ReDIF-Article 1.0
Author-Name: Tufan Ekici
Author-X-Name-First: Tufan
Author-X-Name-Last: Ekici
Author-Name: Lucia Dunn
Author-X-Name-First: Lucia
Author-X-Name-Last: Dunn
Title: Credit card debt and consumption: evidence from household-level data
Abstract:
This research investigates the relationship between credit card debt and
consumption using household level data. This is a departure from the
previous studies which have used aggregate measures of consumption and
general debt such as the Debt Service Ratio or total revolving credit. We
use a detailed monthly survey of credit card use to impute credit card
debt to respondents from the Consumer Expenditure Survey sample. In
contrast to some earlier studies using aggregate data, we find a negative
relationship between debt and consumption growth. Our work shows that a
$1000 increase in credit card debt results in a decrease in quarterly
consumption growth of almost 2%. Investigations are also made into effects
of debt within different age categories and into the impact of expected
income growth on the debt-consumption relationship.
Journal: Applied Economics
Pages: 455-462
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964526
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964526
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:455-462
Template-Type: ReDIF-Article 1.0
Author-Name: Charalambos Pattichis
Author-X-Name-First: Charalambos
Author-X-Name-Last: Pattichis
Title: The intertemporal budget constraint and current account sustainability in Cyprus: evidence and policy implications
Abstract:
Using the recently developed 'bounds' testing approach, this article
provides evidence that Cyprus is not in violation of its intertemporal
budget constraint and its current account balance is 'strongly'
sustainable in the long-run. A policy implication of these findings is
that the loss of exchange rate policy following the adoption of the euro
in 2008 may not be a serious cost for Cyprus. On a methodological level,
the results presented in this article support theoretical models that
employ an intertemporal approach to modelling the current account.
Journal: Applied Economics
Pages: 463-473
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802599875
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599875
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:463-473
Template-Type: ReDIF-Article 1.0
Author-Name: Lourdes Moreno Martin
Author-X-Name-First: Lourdes Moreno
Author-X-Name-Last: Martin
Author-Name: Diego Rodriguez Rodriguez
Author-X-Name-First: Diego Rodriguez
Author-X-Name-Last: Rodriguez
Title: Export activity, persistence and mark-ups
Abstract:
This article addresses the differences in margins across exporting and
nonexporting firms. We jointly estimate a translog cost function, a
variable factor share equation and price-cost margin equations to analyse
the effect of persistence in export activity on margins. Results indicate
that nonexporters have smaller margins than persistent exporters and firms
that entered foreign markets during the nineties. However, larger export
ratio is negatively associated with margins for persistent exporters. It
suggests that efficiency advantages for exporters are partially
compensated by higher competitive pressure in international markets. These
results are in accordance with the predictions of Melitz and Ottaviano
(2005).
Journal: Applied Economics
Pages: 475-488
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604529
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604529
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:475-488
Template-Type: ReDIF-Article 1.0
Author-Name: Gawon Yoon
Author-X-Name-First: Gawon
Author-X-Name-Last: Yoon
Title: Nonlinear mean-reversion to purchasing power parity: exponential smooth transition autoregressive models and stochastic unit root processes
Abstract:
Nonlinear exponential smooth transition autoregressive (ESTAR) models are
recently very popular in modelling the deviation from purchasing power
parity. This article, shows that there is a close relation between the
ESTAR models estimated in Taylor et al. (2001) and stochastic unit root
(STUR) processes of Granger and Swanson (1997) and McCabe and Tremayne
(1995). Also, for a post-Bretton Woods sample period, the real exchange
rates from four major countries are tested if they are better described as
I(1), ESTAR or STUR processes.
Journal: Applied Economics
Pages: 489-496
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701604552
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701604552
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:489-496
Template-Type: ReDIF-Article 1.0
Author-Name: Poomthan Rangkakulnuwat
Author-X-Name-First: Poomthan
Author-X-Name-Last: Rangkakulnuwat
Author-Name: Sung Ahn
Author-X-Name-First: Sung
Author-X-Name-Last: Ahn
Author-Name: Holly Wang
Author-X-Name-First: Holly
Author-X-Name-Last: Wang
Author-Name: Susan He
Author-X-Name-First: Susan
Author-X-Name-Last: He
Title: Extended generalized purchasing power parity and optimum currency area in East Asian countries
Abstract:
This article extends the theory of generalized purchasing power parity
(G-PPP) by developing a model including foreign variables such as the real
money supply, output and interest rate. A cointegration rank test with two
structural breaks in the deterministic trend was adopted to selected Asian
countries, with Japan as the base country. There were two cointegrating
vectors and six common stochastic trends in the model. The cointegrating
vectors were estimated by the same approach used by Pesaran et al. (2000).
The first cointegrating vector is interpreted as G-PPP, and the second one
is interpreted as the extended G-PPP. According to G-PPP, these countries
could form a single currency area. The first stochastic trend is primarily
driven by Japan's real money supply; the second, third and fourth by the
real exchange rates of the Philippines, Singapore and Thailand,
respectively; the fifth by Japan's output; and the sixth by Japan's
government bond yields.
Journal: Applied Economics
Pages: 497-513
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701663269
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701663269
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:497-513
Template-Type: ReDIF-Article 1.0
Author-Name: Bernardino Benito
Author-X-Name-First: Bernardino
Author-X-Name-Last: Benito
Author-Name: Francisco Bastida
Author-X-Name-First: Francisco
Author-X-Name-Last: Bastida
Author-Name: Jose Garcia
Author-X-Name-First: Jose
Author-X-Name-Last: Garcia
Title: Explaining differences in efficiency: an application to Spanish municipalities
Abstract:
This article, investigates efficiency in the municipal sector of the
Region of Murcia (Spain). With that aim, data of 31 municipalities (69% of
the response rate) have been collected. Services analysed are: police,
culture, sports, green areas, refuse collection and water supply. Ratios
of efficiency have been related to other control variables, such as
economic level, size of the municipality, decentralization, political sign
and financial situation. A weak positive relation between economic level
and efficiency arises. Some weak evidence also exists that public
management of refuse collection is more efficient than private. In water
supply, public management by means of a company controlled by the local
government is clearly more efficient than private. It also seems that the
higher the tax burden, the greater the efficiency in providing services.
Journal: Applied Economics
Pages: 515-528
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701675560
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701675560
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:515-528
Template-Type: ReDIF-Article 1.0
Author-Name: Magali Chaudey
Author-X-Name-First: Magali
Author-X-Name-Last: Chaudey
Author-Name: Muriel Fadairo
Author-X-Name-First: Muriel
Author-X-Name-Last: Fadairo
Title: Contractual design and networks performance: empirical evidence from franchising
Abstract:
This article, deals with the links between networks performance and the
design of vertical contracts. It provides evidence broadly consistent with
the hypothesis that within franchising systems, constraining contracts for
the retailers favour a better performance at the network level.
Journal: Applied Economics
Pages: 529-533
Issue: 4
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704428
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704428
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Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:529-533
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Rebucci
Author-X-Name-First: Alessandro
Author-X-Name-Last: Rebucci
Title: Is growth exogenous? Evidence from the 1970s and 1980s
Abstract:
This article assesses the role of external and policy factors for growth
variability. The mean group estimator is used to estimate a vector
autoregressive system on a panel data set of eighteen developing economies
from 1965 to 1992. The main findings are that (i) temporary external
shocks are an important determinant of medium to long-run growth
variability (ii) high inflation countries are more vulnerable to external
shocks than others. This evidence is supportive of the conventional view
that macro-economic stability is conducive to growth, and casts doubts on
the idea that the growth process might be largely exogenous.
Journal: Applied Economics
Pages: 535-543
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704410
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704410
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:535-543
Template-Type: ReDIF-Article 1.0
Author-Name: A. Yurekli
Author-X-Name-First: A.
Author-X-Name-Last: Yurekli
Author-Name: O. Sayginsoy
Author-X-Name-First: O.
Author-X-Name-Last: Sayginsoy
Title: Worldwide organized cigarette smuggling: an empirical analysis
Abstract:
This article estimates the economic size and the impact on government
revenues of cigarette smuggling worldwide and formulates economic policies
that can be used to effectively address the problem. First, information
from various sources are combined and a global map of smuggling routes for
cigarettes is described. By examining the international cigarette trade
records, the hub/transit countries in six regions of the world are
identified. Second, a variable that measures smuggling incentives for
cigarettes is defined and computed for 110 countries. Third, a static
global demand model for cigarettes (that includes the smuggling incentives
variable) is specified and robustly estimated. Using the estimation
results, global price and income elasticities of cigarette demand are
obtained as -0.41 and 0.37, respectively. It is estimated that in 1999,
3.4% of global cigarette consumption was smuggled and 7.4% of tax revenue
was lost to smuggling. Fourth, the best policy options are identified to
achieve the objectives of both public health agencies (less consumption,
less smuggling) and governments (less smuggling, more revenue). A
tax-induced increase in real retail cigarette prices and an improvement in
anti-smuggling law enforcement (as proxied by the corruption indicator)
are found to significantly increase government revenues while decreasing
global consumption and smuggling. Furthermore, when the tax increase is
not accompanied by an improvement in law enforcement, then global
smuggling of cigarettes would increase, but governments would still enjoy
increased tax revenues.
Journal: Applied Economics
Pages: 545-561
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720721
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720721
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:545-561
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Overesch
Author-X-Name-First: Michael
Author-X-Name-Last: Overesch
Author-Name: Georg Wamser
Author-X-Name-First: Georg
Author-X-Name-Last: Wamser
Title: Corporate tax planning and thin-capitalization rules: evidence from a quasi-experiment
Abstract:
This article investigates tax-planning behaviour by means of
inter-company finance and the effectiveness of government countermeasures
via thin-capitalization rules. A simple theoretical model which considers
the financing decision of a multinational company is used to obtain
empirical implications. The empirical analysis, based on German inbound
investment data from 1996 to 2004, confirms a significant impact of
tax-rate differentials on the use of inter-company debt. The effectiveness
of the German thin-capitalization rule is tested by using legal amendments
as natural experiments. The results suggest that thin-capitalization rules
induce significantly lower internal borrowing. Hence, tax planning via
internal finance is effectively limited by thin-capitalization rules.
Journal: Applied Economics
Pages: 563-573
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704477
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704477
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:563-573
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Koning
Author-X-Name-First: Pierre
Author-X-Name-Last: Koning
Author-Name: Daniel van Vuuren
Author-X-Name-First: Daniel
Author-X-Name-Last: van Vuuren
Title: Disability insurance and unemployment insurance as substitute pathways
Abstract:
In this article, we estimate the degree of substitution between enrolment
into Disability Insurance (DI) and Unemployment Insurance (UI) in the
Netherlands. Starting in the 1990s many policy measures aimed at reducing
DI enrolment, and increase labour force participation. We quantify whether
these policy measures have led to a reduction in hidden unemployment in
DI. A side effect of the reforms may be increased pressure on UI.
Therefore, we simultaneously estimate reverse substitution, that is,
hidden disability in UI. To this end, we employ a sample of firms in the
Dutch AVO database from the period 1993 to 2002. Using instrumental
variables in a bivariate Tobit specification, we identify the hidden
components in both respective schemes. The estimation results indicate
that about 3% of all dismissals took place through DI, which implies that
about one quarter of the DI enrolments observed in our sample in fact
consists of hidden unemployment. We find no evidence for reverse
substitution of disabled persons ending up in UI.
Journal: Applied Economics
Pages: 575-588
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704436
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704436
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:575-588
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Garcia
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Garcia
Author-Name: Jose Alberto Molina
Author-X-Name-First: Jose Alberto
Author-X-Name-Last: Molina
Author-Name: Victor Manuel Montuenga
Author-X-Name-First: Victor Manuel
Author-X-Name-Last: Montuenga
Title: Intra-family distribution of paid-work time
Abstract:
This article analyses the intra-family distribution of paid-work time in
five European countries (France, Germany, Italy, Spain and the UK). To
that end, we formulate a collective model, which allows us to characterize
the efficient labour supply decisions of each spouse. This two-equation
model is then simultaneously estimated by using national panel data drawn
from the European Community Household Panel-ECHP (1994-2001). Empirical
results clearly show that, in all sample countries, the labour supply of
wives is affected by own wages, household and own nonlabour incomes and
the number of children, whereas evidence for husbands differs across
countries.
Journal: Applied Economics
Pages: 589-601
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704469
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704469
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:589-601
Template-Type: ReDIF-Article 1.0
Author-Name: Anh Le
Author-X-Name-First: Anh
Author-X-Name-Last: Le
Author-Name: Paul Miller
Author-X-Name-First: Paul
Author-X-Name-Last: Miller
Title: Glass ceiling and double disadvantage effects: women in the US labour market
Abstract:
Gender pay issues in the US labour market are examined using 1990 and
2000 US Census data for three groups: the native born, immigrants from
English-speaking countries and immigrants from non-English-speaking
countries. Quantile regression estimates reveal different patterns of wage
effects across the wage distribution. Females have lower rates of pay
across the entire wage scale. There is minimal evidence of glass ceiling
effects. Immigrant women from non-English-speaking countries are argued to
experience a double disadvantage effect.
Journal: Applied Economics
Pages: 603-613
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704501
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704501
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:603-613
Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Svensson
Author-X-Name-First: Mikael
Author-X-Name-Last: Svensson
Title: Economic upturns are good for your heart but watch out for accidents: a study on Swedish regional data 1976-2005
Abstract:
This article explores the relationship between the regional unemployment
rate in total and cause-specific mortality in Sweden during 1976-2005.
Overall mortality is unrelated to changes in the unemployment rate, while
the biggest cause of death (heart disease) decreases when the unemployment
rate decreases. At the same time, other accidents, including job-related
accidents, increases when the unemployment rate decreases. Swedish
evidence provide no support for the US research findings, that 'short-term
decreases in the unemployment rate are bad for your health', in general.
Journal: Applied Economics
Pages: 615-625
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704519
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704519
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:615-625
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chang Wang
Author-X-Name-First: Ming-Chang
Author-X-Name-Last: Wang
Author-Name: Lon-Ping Zu
Author-X-Name-First: Lon-Ping
Author-X-Name-Last: Zu
Author-Name: Chau-Jung Kuo
Author-X-Name-First: Chau-Jung
Author-X-Name-Last: Kuo
Title: Risk aversion, order strategy and price formation
Abstract:
This article provides a model of order-submission strategy and price
formation by analysing the optimal behaviour of risk-averse uninformed
traders. According to our inference, the market dynamically adjusts the
bid/ask at any moment to generate enough price improvement return in order
to cover the adverse selection risk and the nonexecution risk faced by the
liquidity providers of both side. We find that the asset volatility is the
key determinant of the adverse selection risk and the nonexecution risk,
and thereby the bid-ask spread is positively associated with the asset
volatility. From a practice perspective, our order-submission model based
on risk-averse preference may have much less potential problems than the
risk-neutral analyses of Foucault (1999) and Handa et al. (2003). Besides,
our novelty approach could connect both previous models, which are the
special cases of the reduced form of our model.
Journal: Applied Economics
Pages: 627-640
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720788
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720788
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:627-640
Template-Type: ReDIF-Article 1.0
Author-Name: Omer Gokcekus
Author-X-Name-First: Omer
Author-X-Name-Last: Gokcekus
Author-Name: Adam Godet
Author-X-Name-First: Adam
Author-X-Name-Last: Godet
Author-Name: Heather Ramsey
Author-X-Name-First: Heather
Author-X-Name-Last: Ramsey
Title: Are women more predictable than men?
Abstract:
During the NCAA basketball tournaments from 2002 to 2005, men's games
produced 27% more upsets than women's games. To test whether these
unpredictable results were due to gender differences, we conduct logit
analysis to explain upsets by gender and other potentially significant
variables, including differences in competing teams': (i) RPI scores, (ii)
percentage of freshmen, (iii) percentage of seniors, (iv) top scorer's
total points and, (v) top three scorers' total points. These analyses
suggest that gender plays a significant role in explaining predictability.
Journal: Applied Economics
Pages: 641-645
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704451
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704451
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:641-645
Template-Type: ReDIF-Article 1.0
Author-Name: Evrim Turgutlu
Author-X-Name-First: Evrim
Author-X-Name-Last: Turgutlu
Author-Name: Burcu Ucer
Author-X-Name-First: Burcu
Author-X-Name-Last: Ucer
Title: Is global diversification rational? Evidence from emerging equity markets through mixed copula approach
Abstract:
In this article, we aim to model the level and structure of the
dependence between the world's leading stock markets and those of the
emerging market groups - Europe, Latin America and Far East. To this end
we use a mixture model of Gaussian, Gumbel and Gumbel survival copulas.
Our results indicate that none of the pairs of stock markets exhibit a
right-tail dependence structure. All valid models exhibit a mixture of
Gaussian and left-tail dependence structure. Our findings imply that
Gaussian dependence structure is dominant in most of the models. The
emerging equity markets in the European region exhibit the most
significant dependence structure with the world leaders. Furthermore, most
of the emerging equity markets have a significant dependence structure
with the US stock market. We further compare our findings with the results
of the conventional correlation coefficients and conclude the importance
of using copula models in analysing the portfolio diversification
opportunities. Our findings overall indicate two important remarks: First,
the copula models reveal better indicators for global investors to
establish a diversified portfolio; Second, international equity markets
exhibit significant dependence, which leaves a smaller opportunity to
benefit from international portfolio diversification.
Journal: Applied Economics
Pages: 647-658
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704485
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704485
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:647-658
Template-Type: ReDIF-Article 1.0
Author-Name: Kuan-Min Wang
Author-X-Name-First: Kuan-Min
Author-X-Name-Last: Wang
Author-Name: Thanh-Binh Nguyen Thi
Author-X-Name-First: Thanh-Binh Nguyen
Author-X-Name-Last: Thi
Title: Asymmetric pass-through and risk of interest rate: an empirical exploration of Taiwan and Hong Kong
Abstract:
This study employs the asymmetric threshold cointegration test suggested
by Enders and Siklos (2001) and creates asymmetric EC-EGARCH(1, 1)- M
model to investigate the pass-through of money-market rate to banking
retail rates in Taiwan and Hong Kong. It further explores the impact of
interest volatility on interest rates. Over the period of February 1988 to
December 2004, we find that the interest pass-through mechanism of these
two markets is noncomplete. In addition, based on the asymmetric threshold
cointegration test, we discover the existence of asymmetric cointegration
relationship between retail rates and market rate in both markets. In
particular, while employing asymmetric EC-EGARCH (1, 1)-M model to test
for the influence of money-market rate adjustment and volatility on retail
rates in short-run, we find robust evidence that there exist the upward
rigidity in deposit rate and the downward rigidity in lending rate in both
Taiwan and Hong Kong. This finding supports the hypothesis of the
collusive pricing arrangements. Furthermore, interest volatility should
cause a smaller margin of variation for Taiwan's deposit/lending rates and
wider margin for Hong Kong's lending rate.
Journal: Applied Economics
Pages: 659-670
Issue: 5
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701704444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701704444
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Handle: RePEc:taf:applec:v:42:y:2010:i:5:p:659-670
Template-Type: ReDIF-Article 1.0
Author-Name: Torjus Bolkesjø
Author-X-Name-First: Torjus
Author-X-Name-Last: Bolkesjø
Author-Name: Joseph Buongiorno
Author-X-Name-First: Joseph
Author-X-Name-Last: Buongiorno
Author-Name: Birger Solberg
Author-X-Name-First: Birger
Author-X-Name-Last: Solberg
Title: Joint production and substitution in timber supply: a panel data analysis
Abstract:
Supply equations for sawlog and pulpwood were developed with a panel of
data from 102 Norwegian municipalities, observed from 1980 to 2000. Static
and dynamic models were estimated by cross-section, time-series andpanel
data methods. A static model estimated by first differencing gavethe best
overall results in terms of theoretical expectations, pattern ofresiduals,
prediction accuracy and parsimony. The results showed thatsawlog supply
responded positively to its own price (elasticity e = 0.91 ± 0.07)
but negatively to the pulpwood price (e = -0.22 ± 0.06). The pulpwood
supply responded positively to the price of both pulpwood (e = 0.53 ±
0.06) and sawlogs (e = 0.20 ± 0.07). Sawlog and pulpwood supply had a
common elasticity of 2.04 (± 0.25) with respect to the growing stock,
and of 0.30 (± 0.21) with respect to the interest rate. The supply
elasticity of substitution of sawlog for pulpwood with respect to their
relative price was 0.74 ± 0.04. Policies to raise the annual harvest,
which is currently well below the annual growth, should focus on
stimulating sawnwood production (thus increasing sawlog prices), because
this would increase supply of both pulpwood and sawlogs. Instead, policies
to stimulate pulpwood demand (thus increasing pulpwood prices), would give
more pulpwood, but less sawlogs.
Journal: Applied Economics
Pages: 671-680
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721216
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721216
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:671-680
Template-Type: ReDIF-Article 1.0
Author-Name: Makram El-Shagi
Author-X-Name-First: Makram
Author-X-Name-Last: El-Shagi
Title: Capital controls and international interest rate differentials
Abstract:
Since the Asian crises it is often taken as granted that capital markets
have significant functional deficits. Often these deficits are believed to
be so very strong that the ability of free capital markets to guarantee a
more or less correct international allocation of capital is denied. It is
argued that speculation dominates capital markets so much that capital
allocation is purely random. This is one of the major arguments backing
the present trend to re-establish capital controls, which emerged after
the capital market distortions observed during the Asian flu. In the
present article it is shown that capital markets, while certainly prone to
many distortions, are well capable of roughly guiding capital to the
proper place. Though allocation is not model-like perfect, this steals the
thunder from the idea, that closed or government-guided capital markets
were able to perform better.
Journal: Applied Economics
Pages: 681-688
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720770
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720770
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:681-688
Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Pons-Novell
Author-X-Name-First: Jordi
Author-X-Name-Last: Pons-Novell
Author-Name: Daniel Tirado-Fabregat
Author-X-Name-First: Daniel
Author-X-Name-Last: Tirado-Fabregat
Title: Is there life beyond the ISI Journal lists? The international impact of Spanish, Italian, French and German economics journals
Abstract:
This comparative study looks at the international impact of leading
economics journals published in Spain, Italy, France and Germany. It also
aims to establish whether they play similar roles in these four countries.
For this purpose, data were collected on the number of times that articles
published in these journals are cited in international journals on the ISI
Journals lists. The study focused on the number and characteristics of the
citations received during the period 1996 to 2004 by articles published
between 1995 and 1999 in a limited number of Spanish, Italian, French and
German journals. The international impact of the Spanish journals was
found to be similar in size and characteristics to that of Italian
publications. However, it differed sharply from the impact of the
highest-ranking French and German journals, which received considerably
more citations. Moreover, restricting the group of citing journals to the
'blue ribbon journals', the highest-ranking publications in the economics
sector, only the leading journals in Germany and France received a
significant number of references.
Journal: Applied Economics
Pages: 689-699
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720804
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720804
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:689-699
Template-Type: ReDIF-Article 1.0
Author-Name: Dorothea Schafer
Author-X-Name-First: Dorothea
Author-X-Name-Last: Schafer
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Author-Name: Eva Terberger
Author-X-Name-First: Eva
Author-X-Name-Last: Terberger
Title: Banking competition, good or bad? The case of promoting micro and small enterprise finance in Kazakhstan
Abstract:
Competition is claimed to be beneficial in development projects promoting
micro and small enterprise finance although there are still doubts as to
whether these loans can be developed into a profitable business. Our
research sheds new light on the question of how many MSE banking units
should optimally be created and supported in a certain region. We employ a
unique data set from the European Bank for Reconstruction and Development
for Kazakhstan, and investigate which strategy contributes more to the
overall success of the programme: a strategy of setting up several
competing banks or a strategy of establishing regional monopolies.
'Competition is the most important principle on which our strategy is
based. As in any other market, effective competition provides incentives
for banks to offer market-based and demand-oriented financial services.
Competition encourages the development of better products and services at
lower cost.' (Matthaus-Maier and von Pischke, 2004, p. 1).
Journal: Applied Economics
Pages: 701-716
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720820
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720820
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:701-716
Template-Type: ReDIF-Article 1.0
Author-Name: R. Vergara
Author-X-Name-First: R.
Author-X-Name-Last: Vergara
Title: Taxation and private investment: evidence for Chile
Abstract:
Along with several structural reforms, Chile embarked upon a major income
tax reform in the eighties. Its basic feature was a significant reduction
in the corporate income tax rate. The purpose of this article is to
investigate empirically the link between the tax reform and the investment
performance of Chile since the reform. Macroeconomic and microeconomic
evidence is found to be consistent with the hypothesis of the reduction in
the corporate income tax as being one of the determinants of the
investment boom of the late eighties and nineties in Chile. Our
estimations suggest that there are two channels in which taxes affect
investment: on the one hand, higher taxes increase the cost of capital
(cost of capital channel); and on the other, they reduce internal funds
available for investment (liquidity constraint channel).
Journal: Applied Economics
Pages: 717-725
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720747
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720747
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:717-725
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Kesting
Author-X-Name-First: Peter
Author-X-Name-Last: Kesting
Title: Why it is possible that wages and pensions can increase simultaneously in an ageing and stagnating % A theoretical investigation and a simulation of the German case
Abstract:
This article investigates the possibilities and restrictions of
inter-generational income development for ageing and stagnating economies.
In a first step, the basic logic of ageing will be investigated in a
simple dynamic model. In particular, the investigation points out the
existence of the demographic distribution mass and its meaning for
inter-generational income development. It proves that the demographic
distribution mass makes it possible for wages and pensions to grow
simultaneously in an ageing and stagnating economy. In a second step, the
development of wages and pensions is simulated for the German case through
to the year 2050. It is demonstrated that (under normal circumstances) it
can be expected that the burden from ageing can almost always be
over-compensated by the economic growth of the respective year. Against
this background, ageing appears to be rather a problem of acceptance and
income distribution than that of real income reductions.
Journal: Applied Economics
Pages: 727-738
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720796
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720796
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:727-738
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Vaillant
Author-X-Name-First: Nicolas
Author-X-Name-Last: Vaillant
Author-Name: Philippe Lesot
Author-X-Name-First: Philippe
Author-X-Name-Last: Lesot
Author-Name: Quentin Bonnard
Author-X-Name-First: Quentin
Author-X-Name-Last: Bonnard
Author-Name: Valerie Harrant
Author-X-Name-First: Valerie
Author-X-Name-Last: Harrant
Title: The use of expert opinion, quality and reputation indicators by consumers: evidence from the French vaulting stallion semen market
Abstract:
We build a model inspired by the standard hedonic approach developed by
Rosen (1974) and completed by Landon and Smith (1997, 1998) to analyse the
price of French vaulting stallion semen in 2004. We show that reputation,
modelled as an endogenous factor, plays a less important role than
information on true quality for the explanation of price dispersion. This
result is explained by the fact that information on studhorses is not only
available but also reliable, insofar as the quality of a stallion is
stable over time, contrary to nondurable products like wine or cigars.
This explains also why consumers on this market do not use expert opinions
to make their choices.
Journal: Applied Economics
Pages: 739-745
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720812
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720812
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:739-745
Template-Type: ReDIF-Article 1.0
Author-Name: Koyin Chang
Author-X-Name-First: Koyin
Author-X-Name-Last: Chang
Author-Name: Dennis Wilson
Author-X-Name-First: Dennis
Author-X-Name-Last: Wilson
Author-Name: Yung-Hsiang Ying
Author-X-Name-First: Yung-Hsiang
Author-X-Name-Last: Ying
Author-Name: Yoonbai Kim
Author-X-Name-First: Yoonbai
Author-X-Name-Last: Kim
Title: The decomposition of disturbances to national output of China-the evidence of sectoral and regional shocks
Abstract:
The Chinese government has established policies to promote its industrial
sectors and to develop coastal provinces since the late 1978. To
investigate the extent and reason the output growth in China has been
influenced by these policies, an error-component model is employed to
decompose the importance of sectoral and regional shocks to variations in
national output. The results show that both sectoral specific shocks
common across regions and regional specific shocks common across sectors
are important in explaining the disturbance of national output in China.
Specifically, sectoral specific shocks consistently explain relatively
more disturbance of Chinese output than regional specific shocks do. Our
empirical results are somewhat different from Stockman (1988) and Costello
(1993), since they show almost equal explanatory power of sectoral and
national shocks in accounting for national outputs in OECD countries.
Journal: Applied Economics
Pages: 747-757
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720887
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720887
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:747-757
Template-Type: ReDIF-Article 1.0
Author-Name: Badri Narayanan
Author-X-Name-First: Badri
Author-X-Name-Last: Narayanan
Title: Long-run relationship between output, capital, labour and productivity in emerging market economies
Abstract:
Long-run relationship between the variables involved in the production
function is an issue that is important particularly in developing
countries, as the neoclassical production function is best suited for
developed countries and its applicability to developing countries is
questionable in various ways. This motivates us to do this based on
time-series analysis, taking Indian textile industry as an example, which
is currently at its crucial stage as a critical industry in an emerging
economy, with the phasing out of Multi Fibre Arrangement in 2005. This
study documents existence of cointegration between capital and output,
negative impact of employment shocks on output changes, substitutability
between changes in capital and labour, negative effect of shocks to
changes in capital stock on productivity and negative effect of employment
shocks on future productivity. These results are in line with the general
perceptions about this industry and with the standard neoclassical
propositions, as explained in this article.
Journal: Applied Economics
Pages: 759-768
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720838
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:759-768
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Yazici
Author-X-Name-First: Mehmet
Author-X-Name-Last: Yazici
Author-Name: Mushtaq Ahmad Klasra
Author-X-Name-First: Mushtaq
Author-X-Name-Last: Ahmad Klasra
Title: Import-content of exports and J-curve effect
Abstract:
This article investigates how the response to devaluation of trade
balance is affected, compared to J-curve hypothesis, by the presence of
imported inputs in the production of exports. Using first the Almon lag
technique and then the cointegration and the generalized impulse response
function analysis, the J-curve effect is examined in two sectors of
Turkish economy (manufacturing and mining), which use imported inputs at
different rates. Based on the data covering the period from the first
quarter of 1986 to the third quarter of 1998, our results indicate that in
neither sector J-curve exists and that the violation of the J-curve effect
is more severe in the sector with higher import content
Journal: Applied Economics
Pages: 769-776
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720846
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720846
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:769-776
Template-Type: ReDIF-Article 1.0
Author-Name: Simon So
Author-X-Name-First: Simon
Author-X-Name-Last: So
Author-Name: Gordon Tang
Author-X-Name-First: Gordon
Author-X-Name-Last: Tang
Title: An examination of conditional effect on cross-sectional returns: Singapore evidence
Abstract:
This article empirically examines the usefulness of beta, firm size,
book-to-market equity ratio (B/M) and earnings-to-price ratio (E/P), as
risk proxies in explaining the cross-sectional returns in the Singapore
stock market under both unconditional and conditional frameworks based on
up and down markets. Consistent with previous studies, though beta plays
no role under unconditional framework, there is evidence of a
significantly positive (negative) risk premium on beta during periods of
up (down) markets, supporting for the continuous use of beta as a risk
measure. Interestingly, our results show that firm size is the only
significant variable in explaining average returns under the unconditional
framework but its impact becomes much less under the up and down market
conditions. However, significant conditional effect of E/P is found.
Although, B/M alone is not significantly conditionally related to returns,
in various combinations with beta, it becomes significant and the joint
role of beta and B/M, due to an interaction effect between them, has an
'amplified' gain in the explanatory power. Our study suggests that beta
does not suffice to explain the cross-sectional variations of returns, but
it is possible that the joint effect of beta and B/M may be a surrogate as
an underlying and more fundamental factor that is missing in the
conditional SLB model. We also find evidence that investors in the
Singapore stock market react virtually the same to these firm-specific
factors and to beta during up and down markets. Our results are robust for
both beta-size and size-beta sorting procedures and for both value- and
equally weighted market proxies.
Journal: Applied Economics
Pages: 777-795
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720879
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720879
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:777-795
Template-Type: ReDIF-Article 1.0
Author-Name: Chuan Lee
Author-X-Name-First: Chuan
Author-X-Name-Last: Lee
Author-Name: Chin-Tsai Lin
Author-X-Name-First: Chin-Tsai
Author-X-Name-Last: Lin
Author-Name: Chien-Hua Lai
Author-X-Name-First: Chien-Hua
Author-X-Name-Last: Lai
Title: Jackpot promotion model for Taiwan Lotto
Abstract:
Lotto was inaugurated in January 2002, and immediately became a popular
activity in Taiwan; as the big craze following its initial introduction
has subsided, the growth of Lotto game sales has slowed. To maintain
lottery sales' momentum, operators have conducted numerous jackpot
promotions; this study examines the effectiveness of various jackpot
promotional strategies. The analytical results can provide a valuable
reference for operators and governmental authorities regarding ways of
increasing lottery earnings. The empirical findings of this investigation
include the following: (1) the effective price elasticity of Lotto is
-0.382; Taipei Fubon Bank can increase the revenue gained from Lotto by
increasing the effective price; (2) operators can significantly increase
lottery sales by declaring the jackpot as an unconditional added fixed or
variable bonus.
Journal: Applied Economics
Pages: 797-801
Issue: 6
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720903
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720903
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Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:797-801
Template-Type: ReDIF-Article 1.0
Author-Name: Jon Nelson
Author-X-Name-First: Jon
Author-X-Name-Last: Nelson
Title: Alcohol advertising bans, consumption and control policies in seventeen OECD countries, 1975-2000
Abstract:
This article uses cross-country panel data to study the effects of
advertising bans and other control policies on alcohol demand. The null
hypothesis is that advertising bans do not decrease alcohol consumption.
The study addresses several shortcomings in four previous cross-country
studies. First, an explanatory variable is included for other alcohol
control policies. Second, the study examines the history of advertising
bans in OECD countries. Third, the study also examines differences in
cross-country trends that characterize developed countries, including
aging of the population, increased tourism, higher unemployment rates and
increased consumption of wine. The Mediterranean wine-drinking countries
are shown to be categorically distinct from the beer-drinking countries
and Nordic spirits-drinking countries. Fourth, the study examines the
panel data for unit roots and employs model specifications that correct
for nonstationary data. The empirical results indicate a significantly
negative effect for the control index and the alcohol price. Using
alternative model specifications and estimation methods, the results
indicate that advertising bans do not reduce alcohol consumption.
Journal: Applied Economics
Pages: 803-823
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720952
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720952
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:803-823
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Hakim
Author-X-Name-First: Abdul
Author-X-Name-Last: Hakim
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Title: Modelling the interactions across international stock, bond and foreign exchange markets
Abstract:
The benefits of investing internationally depend on three conditions,
namely, cross-country correlations, market volatilities and future changes
in currency risks (Odier and Solnik, 1993). This article investigates
these conditions for several countries. Many papers have modelled both
domestic interactions across asset markets and international interactions
in individual asset markets in isolation, but rarely have they examined
international interactions across asset markets. The article fills this
gap by modelling the international interactions across stock, bond and
foreign exchange markets. Two models that meet these purposes are the
VARMA-AGARCH model of Hoti et al. (2002) and the VARMA-GARCH model of Ling
and McAleer (2003). The countries that will be modelled in this article
are Australia, Japan, Singapore, New Zealand and USA.
Journal: Applied Economics
Pages: 825-850
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720994
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720994
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:825-850
Template-Type: ReDIF-Article 1.0
Author-Name: Pål Boug
Author-X-Name-First: Pål
Author-X-Name-Last: Boug
Author-Name: Andreas Fagereng
Author-X-Name-First: Andreas
Author-X-Name-Last: Fagereng
Title: Exchange rate volatility and export performance: a cointegrated VAR approach
Abstract:
During the last decades Norwegian exporters have-despite various forms of
exchange rate targeting-faced a rather volatile exchange rate which may
have influenced their behaviour. Recently, the shift to inflation
targeting and a freely floating exchange rate has brought about an even
more volatile exchange rate. We examine the causal link between export
performance and exchange rate volatility across different monetary policy
regimes within the cointegrated Vector Autoregression (VAR) framework
using the implied conditional variance from a Generalized Autoregressive
Conditional Heteroskedasticity (GARCH) model as a measure of volatility.
Although treating the volatility measure as either a stationary or a
nonstationary variable in the VAR, we are not able to find any evidence
suggesting that export performance has been significantly affected by
exchange rate uncertainty. We find, however, that volatility changes
proxied by blip dummies related to the monetary policy change from a fixed
to a managed floating exchange rate and the Asian financial crises during
the 1990s enter significantly in a dynamic model for export growth-in
which the level of relative prices and world market demand together with
the level of exports constitute a significant cointegration relationship.
A forecasting exercise on the dynamic model rejects the hypothesis that
increased exchange rate volatility in the wake of inflation targeting in
the monetary policy has had a significant impact on export performance.
Journal: Applied Economics
Pages: 851-864
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802600491
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600491
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:851-864
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Rangel Figueira
Author-X-Name-First: Sergio Rangel
Author-X-Name-Last: Figueira
Author-Name: Heloisa Lee Burnquist
Author-X-Name-First: Heloisa Lee
Author-X-Name-Last: Burnquist
Author-Name: Mirian Rumenos Piedade Bacchi
Author-X-Name-First: Mirian Rumenos Piedade
Author-X-Name-Last: Bacchi
Title: Forecasting fuel ethanol consumption in Brazil by time series models: 2006-2012
Abstract:
This article analysed scenarios for Brazilian consumption of ethanol for
the period 2006 to 2012. The results show that if the country's GDP
sustains a 4.6% a year growth, domestic consumption of fuel ethanol could
increase to 25.16 billion liters in this period, which is a volume
relatively close to the forecasted gasoline consumption of 31 billion
liters. At a lower GDP growth of 1.22% a year, gasoline consumption would
be reduced and domestic ethanol consumption in Brazil would be no higher
than 18.32 billion liters. Contrary to the current situation, forecasts
indicated that hydrated ethanol consumption could become much higher than
anhydrous consumption in Brazil. The former is being consumed in cars
moved exclusively by ethanol and flex-fuel cars, successfully introduced
in the country at 2003. Flex cars allow Brazilian consumers to choose
between gasoline and hydrated ethanol and immediately switch to whichever
fuel presents the most favourable relative price.
Journal: Applied Economics
Pages: 865-874
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720978
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720978
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:865-874
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen MacDonald
Author-X-Name-First: Stephen
Author-X-Name-Last: MacDonald
Author-Name: Suwen Pan
Author-X-Name-First: Suwen
Author-X-Name-Last: Pan
Author-Name: Agapi Somwaru
Author-X-Name-First: Agapi
Author-X-Name-Last: Somwaru
Author-Name: Francis Tuan
Author-X-Name-First: Francis
Author-X-Name-Last: Tuan
Title: China's role in world cotton and textile markets: a joint computable general equilibrium/partial equilibrium approach
Abstract:
Under the Uruguay Round's Agreement on Textiles and Clothing (ATC), the
quotas inherited from the Multifibre Arrangement were gradually phased-out
between January 1995 and 31 December 2004. This study estimates the impact
of the ATC's implementation on China's textile industry and China's cotton
sector. The study finds that, assuming equilibrium levels of income and
exchange rates, the adoption of ATC are expected to increase China's net
apparel exports, textile production, cotton consumption, cotton production
and cotton imports. However, this study fails to support the hypothesis
that the adoption of the ATC results in China supplanting the textile
industries of the rest of the developing world. The impacts on cotton are
also smaller than indicated by previous studies. These outcomes are
somewhat sensitive to estimates of expected efficiency gains around the
world.
Journal: Applied Economics
Pages: 875-885
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720911
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720911
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:875-885
Template-Type: ReDIF-Article 1.0
Author-Name: Hsiu-Yun Lee
Author-X-Name-First: Hsiu-Yun
Author-X-Name-Last: Lee
Author-Name: Jyh-Lin Wu
Author-X-Name-First: Jyh-Lin
Author-X-Name-Last: Wu
Author-Name: Chiung-Hsiang Lin
Author-X-Name-First: Chiung-Hsiang
Author-X-Name-Last: Lin
Title: Hysteresis in East Asian unemployment
Abstract:
High-performing Asian economies are quite distinctive with efficient,
flexible and responsive labour markets. Comparing the persistence of
unemployment in East Asian economies to that in Western countries is
difficult due to the data's short time spans and possible structural
breaks. This article employs advanced unit root tests to deal with these
problems and fails to reject 'hysteresis' in the unemployment rates of the
high-performing Asian countries, even after taking into account structural
change. An alternative explanation of different productivity growth for
the hysteresis phenomenon of the Asian countries is proposed herein.
Journal: Applied Economics
Pages: 887-898
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720895
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:887-898
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Zaher
Author-X-Name-First: Mohammad
Author-X-Name-Last: Zaher
Author-Name: Allen Featherstone
Author-X-Name-First: Allen
Author-X-Name-Last: Featherstone
Title: Productive efficiency in the Middle East and North Africa
Abstract:
Productive efficiency and factors affecting it in 11 countries in the
Middle East and North Africa region were evaluated over the period 1980 to
1999 using Fare's nonparametric approach. The results indicate that
Oil-producing countries are more efficient in terms of production compared
with non Oil-producing countries. Tobit analyses indicate that previous
levels of efficiency, the degree of economic openness, consumption of
domestically produced goods and the limited availability of credit have a
positive impact on production efficiency. A sensitivity analysis using the
bias corrected bootstrap technique shows that allocative efficiency and
economic efficiency are more sensitive to the returns to scale assumption
and sample size than pure technical efficiency.
Journal: Applied Economics
Pages: 899-915
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720986
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720986
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:899-915
Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Hung Sun
Author-X-Name-First: Chia-Hung
Author-X-Name-Last: Sun
Author-Name: Yi-Bin Chiu
Author-X-Name-First: Yi-Bin
Author-X-Name-Last: Chiu
Title: Taiwan's trade imbalance and exchange rate revisited
Abstract:
This article applies the recently developed econometric method of
autoregressive distributed lag (ARDL) model to re-examine the relationship
between the exchange rate and bilateral trade imbalance for Taiwan and its
several trading partners: China, Hong Kong, the US, Japan, South Korea and
Malaysia. The implication of this issue is critical to policy makers,
particularly after China and Taiwan joined the World Trade Organization
(WTO) in late 2001 and early 2002, respectively. The empirical evidence
shows a stable long-run relationship of bilateral trade balance and real
exchange rate between Taiwan and its trading partners except Japan. Other
findings indicate that except for the US, there is no specific pattern
supporting the J-curve phenomenon for these trading partners.
Journal: Applied Economics
Pages: 917-922
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720937
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720937
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:917-922
Template-Type: ReDIF-Article 1.0
Author-Name: Qin Xiao
Author-X-Name-First: Qin
Author-X-Name-Last: Xiao
Author-Name: Yunhua Liu
Author-X-Name-First: Yunhua
Author-X-Name-Last: Liu
Title: The residential market of Hong Kong: rational or irrational?
Abstract:
The current study attempts to investigate the proposition that Hong Kong
residential market is only driven by a rational speculative bubble, in
addition to fundamentals. The fundamentals are chosen according to the
present value model, but will account for latent private information.
Potential roles of other public information are also explored. The study
finds that the influence of the rational bubble on the price growth is
highly significant. However, in contrast to Seoul and Singapore housing
market (Xiao, 2006; Xiao and Huang, 2007), neither the fundamentals, nor
the rational bubble can explain much of the price growth in the market of
concern. This finding leaves large room for questioning whether or not
this market is more prone to irrationality than its counterparts in Seoul
and Singapore.
Journal: Applied Economics
Pages: 923-933
Issue: 7
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701720960
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701720960
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Handle: RePEc:taf:applec:v:42:y:2010:i:7:p:923-933
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Wieck
Author-X-Name-First: Christine
Author-X-Name-Last: Wieck
Author-Name: David Holland
Author-X-Name-First: David
Author-X-Name-Last: Holland
Title: The economic effect of the Canadian BSE outbreak on the US economy
Abstract:
Before the discovery of the first Bovine Spongiform Encephalopathy (BSE)
cow in May 2003, Canada was the most important exporter of live cattle
into the US with a share of 74% of US total live cattle imports. With the
outbreak of BSE in Canada, the US ceased imports of Canadian cattle and
beef products. This study analyses the short to medium-term effect of the
import trade ban for the US economy using a 20 sector, economy wide
Computable General Equilibrium (CGE) model. Uncertainty about exogenous
elasticity values was addressed using Monte Carlo techniques.
Beneficiaries of the trade ban are the cattle industry and related
sectors, such as feed production and agricultural service providers. The
US economy as a whole, however, is negatively affected with a loss of
∼$-1.7 billion in gross domestic product and -11000 jobs. The model
shows how the restriction on Canadian cattle imports generates income
losses for both rich and poor households in the US.
Journal: Applied Economics
Pages: 935-946
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721125
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721125
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:935-946
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Nikolopoulos
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Nikolopoulos
Title: Forecasting with quantitative methods: the impact of special events in time series
Abstract:
Quantitative methods are very successful in producing baseline forecasts
of time series; however, these models forecast neither the timing nor the
impact of special events such as promotions or strikes. In most of the
cases, the timing of such events is not known so they are usually referred
as shocks (economics) or special events (forecasting). Sometimes the
timing of such events is known a priori (i.e. a future promotion); but
even then the impact of the forthcoming event is hard to estimate.
Forecasters prefer to use their own judgement for adjusting for
forthcoming special events, but human efficiency in such tasks has been
found to be deficient. This study after examining the relative performance
of Artificial Neural Networks (ANNs), Multiple Linear Regression (MLR) and
Nearest Neighbour (NN) approaches proposes an expert method, which
combines the strengths of regression and artificial intelligence.
Journal: Applied Economics
Pages: 947-955
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721042
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:947-955
Template-Type: ReDIF-Article 1.0
Author-Name: Masoud Moghaddam
Author-X-Name-First: Masoud
Author-X-Name-Last: Moghaddam
Title: Co-integrated money in the production function-evidence and implications
Abstract:
The notion of money as a factor of production has been debated both
theoretically and empirically by a number of researchers in the past four
decades. However, the empirical support for money as an input along with
labour and capital has been mixed and thus, the issue appears to be
unsettled. Recent developments in econometrics regarding co-integration
and error correction provide a rich environment in which the role of money
in the production function can be reexamined. In a co-integrated space,
this article presents empirical evidence indicating that different
definitions of money (simple sum or the divisia M2) play an input role in
the Cobb-Douglas production function.
Journal: Applied Economics
Pages: 957-963
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721075
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721075
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:957-963
Template-Type: ReDIF-Article 1.0
Author-Name: Juthathip Jongwanich
Author-X-Name-First: Juthathip
Author-X-Name-Last: Jongwanich
Title: The determinants of household and private savings in Thailand
Abstract:
A broad set of possible determinants of household and private savings
behaviour is examined through an in-depth case study of Thailand during
the period 1960 to 2004. Results suggest that an increase in economic
growth, inflation and terms of trade all have a significant positive
impact on household and private saving rates. In contrast, the
availability of bank credit tends to reduce household and private saving
rates. While an increase in both old and young dependency has a negative
impact on household and private saving rates, the magnitude of the impact
on the former is far greater than that on the latter. Furthermore, public
saving seems to crowd out household and private saving, but less than
proportionately. This reflects a possible role of fiscal policy in
increasing national savings in the economy. Over and above these
variables, corporate saving is another important determinant of household
saving. An increase in the former brings about a significant reduction in
the latter.
Journal: Applied Economics
Pages: 965-976
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721067
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721067
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:965-976
Template-Type: ReDIF-Article 1.0
Author-Name: Jian-Zhou Teng
Author-X-Name-First: Jian-Zhou
Author-X-Name-Last: Teng
Author-Name: Qi Liang
Author-X-Name-First: Qi
Author-X-Name-Last: Liang
Title: Reassessment of the finance-growth nexus in the presence of structural breaks
Abstract:
This article investigates empirically the causality between financial
development and economic growth for 11 sample countries in a structural
break framework via minimum Lagrange multiplier unit-root test and Hsiao's
causality test. We find most of the series can be more accurately
characterized as a segmented trend stationary process around structural
breaks as opposed to a stochastic unit-root process, which has important
implications for policy-makers to formulate long-term development strategy
and short-run stabilization policies as well as for academics to carry out
cointegration analysis. Besides, we find different causality patterns in
sample countries, which depart from those found in the existing
literature, highlighting that it might be unreliable to apply only
conventional unit-root test and inappropriate to take the first difference
of the series to achieve stationarity, all of which might result in model
misspecification. Our analysis also provides some evidence on the source
of the mixed results on finance-growth nexus as they may differ due to the
length of data span and the different econometric procedure. 'One of the
most important problems in the field of finance … is the effect
that financial structure and development have on economic growth'.
Goldsmith (1969, p. 390)
Journal: Applied Economics
Pages: 977-988
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721059
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721059
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:977-988
Template-Type: ReDIF-Article 1.0
Author-Name: Emanuela Marrocu
Author-X-Name-First: Emanuela
Author-X-Name-Last: Marrocu
Author-Name: Raffaele Paci
Author-X-Name-First: Raffaele
Author-X-Name-Last: Paci
Title: The effects of public capital on the productivity of the Italian regions
Abstract:
This article investigates the role played by public capital in increasing
the productivity levels in Italy. For construction of the regional series
for the public capital stock over the period 1996 to 2003, the study
benefits from the use of the rich dataset on public expenditure, recently
published by the Italian Ministry of Economy. We have estimated panel
production functions with the inclusion of traditional factors and also
intangible inputs like research and development (R&D) expenditure, human
capital (HK) and social capital (SK). The results point out that public
capital has a positive and significant effect on production. Moreover, the
effects of all production factors vary considerably between the two
macro-areas of the country, namely Centre-North and Mezzogiorno. More
specifically, while private capital is more effective in the South, labour
exhibits an elasticity much higher in the Centre-North with respect to the
Mezzogiorno. The disaggregation of the public capital stock into
functional categories indicates a significant different impact in the two
macro-areas. In addition, when the analysis is carried out by
distinguishing among government levels it turns out that the decentralized
administrative bodies are much less efficient in the South in delivering
public expenditure.
Journal: Applied Economics
Pages: 989-1002
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721083
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721083
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:989-1002
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Shyh-Wei Chen
Author-X-Name-First: Shyh-Wei
Author-X-Name-Last: Chen
Author-Name: Chien-Fu Chen
Author-X-Name-First: Chien-Fu
Author-X-Name-Last: Chen
Title: The dual characteristics of closed-end country funds: the role of risk
Abstract:
This article explores which of two hypotheses, market segmentation or
investor sentiment, determines the behaviour of Closed-End Country Funds
(CECFs) with the inclusion of risk factors. The risk factors are proxied
volatility, as estimated with a Bivariate Markov-switching Autoregressive
Conditional Heteroskedasticity (BSWARCH) model, which simultaneously
includes foreign and US markets. Our findings are as follows. On average,
a positive response is larger than a negative response in terms of
absolute value. And, the market segmentation hypothesis with risk factors
gains support in Mexico, where CECF returns are related to a market with
low volatility but not to one with high volatility. Third, the investor
sentiment hypothesis, which argues that CECF returns are not responsive to
foreign markets, is weakly supported in Brazil, the Philippines, Indonesia
and, to a lesser degree, in Germany.
Journal: Applied Economics
Pages: 1003-1013
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721018
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1003-1013
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Demoussis
Author-X-Name-First: Michael
Author-X-Name-Last: Demoussis
Author-Name: N. Giannakopoulos
Author-X-Name-First: N.
Author-X-Name-Last: Giannakopoulos
Author-Name: S. Zografakis
Author-X-Name-First: S.
Author-X-Name-Last: Zografakis
Title: Native-immigrant wage differentials and occupational segregation in the Greek labour market
Abstract:
This article explores native-immigrant wage differentials in the Greek
labour market. Data from the most recent Greek Household Budget Survey
(2004-05) were employed, four alternative occupational categories were
considered and occupational choice was explicitly modelled. Controlling
for occupational selectivity, occupation-specific wage regressions for
representative samples of employed native and immigrant workers were
estimated and an augmented decomposition technique was utilized to analyse
inter and intra occupation wage differentials. The obtained results
demonstrate that roughly 48% of the average wage differential cannot be
explained by differences in observed characteristics and that the larger
component of this unexplained part is due to asymmetrical occupational
access by native and immigrant workers.
Journal: Applied Economics
Pages: 1015-1027
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721000
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721000
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1015-1027
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Rezitis
Author-X-Name-First: Anthony
Author-X-Name-Last: Rezitis
Title: Agricultural productivity and convergence: Europe and the United States
Abstract:
This article applies the Window Malmquist Index (WMI) approach to measure
changes in agricultural Total Factor Productivity (TFP) for the United
States and a sample of nine European countries for the period 1973 to
1993. The dataset used in this article is obtained from Ball et al.
(2001). The WMI is constructed by combining Data Envelopment Analysis,
window analysis with the Malmquist index approach. Furthermore, the
'Kruskal and Wallis rank test' is used for testing frontier shifts among
observed periods. The article also explores the question of convergence in
TFP across the countries under consideration, by testing for β- and
σ-convergence, as well as for stochastic or long-run convergence.
The results show wide variation in the rate of TFP growth across countries
with an average trend growth rate of 1.62%. The results indicate the
presence of β-convergence but the absence of σ-convergence for
the full period under consideration but the presence of both β- and
σ-convergence for the sub-period 1983 to 1993. Finally, a wide
spectrum of panel unit root test results support the presence of long-run
convergence among the sample countries.
Journal: Applied Economics
Pages: 1029-1044
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721026
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1029-1044
Template-Type: ReDIF-Article 1.0
Author-Name: Santiago Budria
Author-X-Name-First: Santiago
Author-X-Name-Last: Budria
Title: Schooling and the distribution of wages in the European private and public sectors
Abstract:
International research has shown that schooling enhances within-groups
wage dispersion. This assessment is typically based on private sector data
and, up to date, the inequality implications of schooling have not been
documented for the public sector. This article uses recent data from eight
European countries to explicitly take into account differences between the
private and public sectors. Using quantile regression, the article
describes the effects of schooling on the location and shape of the
conditional wage distribution in each sector. While the average impact of
schooling on wages is similar across sectors, the impact of schooling on
within-groups dispersion is found to be substantially larger in the
private sector than in the public sector. This finding warns that the
effects of the European educational expansion on overall within-groups
dispersion may be lower than previously thought.
Journal: Applied Economics
Pages: 1045-1054
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721109
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721109
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1045-1054
Template-Type: ReDIF-Article 1.0
Author-Name: Sheng-Tung Chen
Author-X-Name-First: Sheng-Tung
Author-X-Name-Last: Chen
Author-Name: Chih-Ching Yang
Author-X-Name-First: Chih-Ching
Author-X-Name-Last: Yang
Author-Name: Wei-Chun Tseng
Author-X-Name-First: Wei-Chun
Author-X-Name-Last: Tseng
Author-Name: Chi-Chung Chen
Author-X-Name-First: Chi-Chung
Author-X-Name-Last: Chen
Title: Options using a collective lottery to ration vaccines during an influenza pandemic
Abstract:
For many countries, the best way to counter an influenza pandemic is to
provide citizens with a pandemic vaccine. However, since the global supply
of the vaccines is far smaller than the quantity demanded, how to allocate
the limited vaccines can be a very challenging task for them. In this
study, we introduce a collective lottery mechanism that allocates vaccines
as fairly as the traditional lottery, while also offering more options for
family members or those who are close so that they can choose the joint
probability of successes that can maximize their welfare. This mechanism
thus gives rise to a Pareto improvement over the traditional lottery. Our
empirical study uses the US and the UK as examples in sequential
collective lotteries that are simulated to prove that such an improvement
while maintaining fairness, in fact, exists.
Journal: Applied Economics
Pages: 1055-1065
Issue: 8
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721091
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721091
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Handle: RePEc:taf:applec:v:42:y:2010:i:8:p:1055-1065
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Hanafiah Harvey
Author-X-Name-First: Hanafiah
Author-X-Name-Last: Harvey
Title: The J-curve: Malaysia versus her major trading partners
Abstract:
Currency depreciation is said to worsen the trade balance before
improving it, hence the J-curve phenomenon. Since introduction of
cointegration and error-correction modelling, researchers have tried to
distinguish the short-run effects of currency depreciation from its
long-run effects. A few studies that have investigated the experience of
Malaysia, have relied upon aggregate trade data and have found no strong
support for a significant relation between the real value of the ringgit
and the Malaysian trade balance. In this article, we disaggregate the data
by country and consider Malaysia's bilateral trade balance with her 14
largest trading partners. Using bound testing approach to cointegration
and error-correction modelling, we provide some support for the J-curve
hypothesis.
Journal: Applied Economics
Pages: 1067-1076
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721158
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721158
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1067-1076
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Sencicek
Author-X-Name-First: Mehmet
Author-X-Name-Last: Sencicek
Author-Name: Kamal Upadhyaya
Author-X-Name-First: Kamal
Author-X-Name-Last: Upadhyaya
Title: Are devaluations contractionary? The case of Turkey
Abstract:
This article studies the output effects of currency devaluation in Turkey
using annual data from 1970 to 2004. An empirical model that incorporates
monetary, fiscal and other external variables in addition to exchange
rates is developed. Before estimating the model, time-series properties of
the data are diagnosed. Two forms of the model, one with real exchange
rate and the other with nominal exchange rate and relative price level
(foreign-to-domestic price ratio) are estimated. The results suggest that
devaluation is contractionary in the short run, expansionary in the medium
run and neutral in the long run, and the effects emanate from nominal
devaluation and not from the changes in relative price level.
Journal: Applied Economics
Pages: 1077-1083
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721208
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721208
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1077-1083
Template-Type: ReDIF-Article 1.0
Author-Name: Beat Hintermann
Author-X-Name-First: Beat
Author-X-Name-Last: Hintermann
Author-Name: Anna Alberini
Author-X-Name-First: Anna
Author-X-Name-Last: Alberini
Author-Name: Anil Markandya
Author-X-Name-First: Anil
Author-X-Name-Last: Markandya
Title: Estimating the value of safety with labour market data: are the results trustworthy?
Abstract:
We use a panel dataset of UK workers, combined with risk data at the
four-digit industry level, to look for evidence of compensating wage
differentials for workplace risk. We discuss various econometric problems
associated with the hedonic wage approach, namely the instability of the
estimates to specification changes, unobserved heterogeneity and
endogeneity. We find evidence of significant compensating wage
differentials and Values of a Statistical Life (VSL) figures only under
the most restrictive assumptions, i.e. when we assume that there is no
unobserved heterogeneity and that all regressors are exogenous. However,
the VSL values are large and vary dramatically with the inclusion or
exclusion of industry and/or occupation dummies, as well as with the
addition of nonfatal risk. When we specify models that allow for
heterogeneity and endogeneity of risk and of other regressors, we find no
evidence of compensating wage differentials. We conclude that if
compensating differentials for risk exists, econometric problems and the
changing nature of labour markets prevent us from observing them. We also
conclude that models and techniques for panel data that account for
unobserved heterogeneity and endogeneity present a completely different
picture about compensating wage differentials than that inferred by most
wage-risk studies, which have generally used single cross-sections of
data.
Journal: Applied Economics
Pages: 1085-1100
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802260940
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260940
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1085-1100
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Groothuis
Author-X-Name-First: Peter
Author-X-Name-Last: Groothuis
Author-Name: Paul Gabriel
Author-X-Name-First: Paul
Author-X-Name-Last: Gabriel
Title: Positive assortative mating and spouses as complementary factors of production: a theory of labour augmentation
Abstract:
This article develops a model of intellectual labour augmentation to
explain both the marriage wage premium and educational assortative mating.
We suggest that husbands and wives are complementary factors of production
where a spouse's education and skills augment their partner's productivity
and earnings potential. We test this proposition using data from the 2000
US Census of Population and the 2003 Current Population Survey. Our
results indicate that for working couples the marriage premium for
husbands and wives is directly related to the education level of their
spouses-suggesting that positive assortative mating may be attributable to
the labour market effects of intellectual augmentation of married
households.
Journal: Applied Economics
Pages: 1101-1111
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721141
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721141
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1101-1111
Template-Type: ReDIF-Article 1.0
Author-Name: Tseng-Chung Tang
Author-X-Name-First: Tseng-Chung
Author-X-Name-Last: Tang
Title: Effects of announcements of reorganization outcome
Abstract:
Less is known about whether the market perceives the final resolution of
post-reorganization filing to be idiosyncratic or to carry endemic
implications for the corresponding industries. This study observes the
presence of intra-industry information transfers; the magnitude and
direction of the reactions in response to three separate resolution
outcome differs in a systematic way across industry portfolios.
Specifically, portfolio rivals that are affected by competitive
realignments in the industry experience stock price reactions in the
opposite manner to those of the distressed firms, thus suggesting dominant
competitive effects. In addition, this study reveals that the
discriminatory power and forecast performance of three hybrid neuro-fuzzy
models are stable and unimpaired across time and are generally superior in
classifying Rival Cumulative Prediction Error (RCPE-) candidates.
Journal: Applied Economics
Pages: 1113-1124
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721174
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721174
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1113-1124
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Chu Chuang
Author-X-Name-First: Chung-Chu
Author-X-Name-Last: Chuang
Author-Name: Yi-Hsien Wang
Author-X-Name-First: Yi-Hsien
Author-X-Name-Last: Wang
Title: Electoral information in developed stock market: testing conditional heteroscedasticity in the market model
Abstract:
This investigates the influence of major electoral information on
abnormal returns around the announcement date in the developed stock
market and examines whether these explanatory variables are associated
with observed cumulative abnormal returns using a regression analysis. The
analytical results demonstrate that average abnormal returns are
significantly negative before the date of the announcement of the results
of a general election, on days -6 and -3, and after that announcement
date, on days +4, +6 and +10. This phenomenon can be attributed to hedging
activity of the investors to reduce risk.
Journal: Applied Economics
Pages: 1125-1131
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721117
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721117
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1125-1131
Template-Type: ReDIF-Article 1.0
Author-Name: Manolis Kritikos
Author-X-Name-First: Manolis
Author-X-Name-Last: Kritikos
Author-Name: Raphael Markellos
Author-X-Name-First: Raphael
Author-X-Name-Last: Markellos
Author-Name: Gregory Prastacos
Author-X-Name-First: Gregory
Author-X-Name-Last: Prastacos
Title: Corporate real estate analysis: evaluating telecom branch efficiency in Greece
Abstract:
This article proposes productivity analysis for evaluating the relative
efficiency in corporate real estate usage across decision-making units.
Using data from the Greek Telecommunications Organization (GTO), we
measure the productivity of 127 branches using the number of employees and
the total area covered per building as inputs and the number of telephony
access lines as outputs. We apply three nonparametric Data Envelopment
Analysis (DEA) models assuming: Constant Returns to Scale (CRS), Variable
Returns to Scale (VRS) and Slacks-Based Measures (SBM), respectively. We
discuss how the proposed approach can provide real estate managers and
analysts a multi-informational tool that allows the quantification of
targets and may serve as a guide tool for the efficient employment of real
estate assets.
Journal: Applied Economics
Pages: 1133-1143
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721166
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721166
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1133-1143
Template-Type: ReDIF-Article 1.0
Author-Name: I-Chun Tsai
Author-X-Name-First: I-Chun
Author-X-Name-Last: Tsai
Author-Name: Ming-Chi Chen
Author-X-Name-First: Ming-Chi
Author-X-Name-Last: Chen
Author-Name: Tai Ma
Author-X-Name-First: Tai
Author-X-Name-Last: Ma
Title: Modelling house price volatility states in the UK by switching ARCH models
Abstract:
This article analyses investment risk in the housing market by examining
volatility properties of house prices for the UK. We use both ARCH and
GARCH models to estimate price conditional heteroscedasticity and find
evidence of a time-varying property in the volatilities of the house price
series. We then use the SWARCH model and find there are three volatility
states in the price series. Our estimations suggest the UK housing markets
are relatively stable and different states do not switch very often. The
magnitude of high price volatility is as high as 20.99 times of the low
volatility for the older housing market and 14 times of the low volatility
for the new housing market. In addition, the older housing market is less
efficient than the new housing market, since the impacts of events on the
volatility state of the older house prices is more lasting than in new
housing market.
Journal: Applied Economics
Pages: 1145-1153
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721133
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721133
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1145-1153
Template-Type: ReDIF-Article 1.0
Author-Name: J. -H. Chen
Author-X-Name-First: J. -H.
Author-X-Name-Last: Chen
Author-Name: C. -Y. Huang
Author-X-Name-First: C. -Y.
Author-X-Name-Last: Huang
Title: An analysis of the spillover effects of exchange-traded funds
Abstract:
This article used the Generalized Autoregressive Conditional
Heteroscedasticity-Autoregressive Moving Average (GARCH-ARMA) and the
exponentially Generalized Autoregressive Conditional
Heteroscedasticity-Autoregressive Moving Average (EGARCH-ARMA) models to
study the impact of the spillover and the leverage effects on returns and
volatilities of stock index and Exchange Trade Fund (ETF) for developed
and emerging markets. Previous unexpected returns for developed and
emerging markets which have an opposite influence pattern on ETFs' returns
were identified. The spillover effects from returns are excellent for Hong
Kong, followed by Singapore. Meanwhile, Taiwan's stock index return was
recorded to have a strong negative impact on ETF return. Notably, this
article shows that the spillover effects on stock index and ETF
volatilities existed with bilateral influences. Despite a strong positive
asymmetric volatility effect in Korea's ETF market, the leverage effect
appears to play important roles in the explanation of both stock index and
ETF returns.
Journal: Applied Economics
Pages: 1155-1168
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721182
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721182
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1155-1168
Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Hsin Huang
Author-X-Name-First: Tai-Hsin
Author-X-Name-Last: Huang
Author-Name: Ying-Ting Liao
Author-X-Name-First: Ying-Ting
Author-X-Name-Last: Liao
Author-Name: Li-Chih Chiang
Author-X-Name-First: Li-Chih
Author-X-Name-Last: Chiang
Title: An examination on the cost efficiency of the banking industry under multiple output prices' uncertainty
Abstract:
This article formulates a behavioural model of profit maximization, which
explicitly incorporates both multiple output prices' risk and safety-first
practice. This theoretical model is specifically suitable for
investigating financial institutions, whose output prices frequently
encounter a variety of risks, such as loan defaults/arrears. The sample
banks are empirically found to be highly risk-averse. Furthermore, risk
preferences exert little effect on the technical efficiency estimates,
whereas the same estimates obtained by the standard fixed-effect model
under certainty tend to be overestimated. Evidence is found that a
specialized bank offering a single product with a larger scale of
production will be preferable in an uncertain atmosphere.
Journal: Applied Economics
Pages: 1169-1182
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721190
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721190
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1169-1182
Template-Type: ReDIF-Article 1.0
Author-Name: Tay-Cheng Ma
Author-X-Name-First: Tay-Cheng
Author-X-Name-Last: Ma
Title: Do prices respond asymmetrically to cost changes?
Abstract:
This article investigates price asymmetry by using an almost complete
sample of Taiwanese industries to see whether output prices respond faster
to cost increases than they do to decreases. In contrast with the earlier
literature, the evidence shows that positive price asymmetry cannot be
applied to all industries, especially those industries with rapid
productivity growth. The evidence also indicates that firms exhibiting
fast (slow) productivity growth see their prices react less (more) to cost
increases than to cost decreases.
Journal: Applied Economics
Pages: 1183-1196
Issue: 9
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721240
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721240
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Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1183-1196
Template-Type: ReDIF-Article 1.0
Author-Name: David Hineline
Author-X-Name-First: David
Author-X-Name-Last: Hineline
Title: Long-run impacts of inflation across sectors in a small sample of countries
Abstract:
This article investigates the long-run effects of inflation on economic
output for 10 sectors of the economy, with a sample of 7 countries. The
analysis is done using long-run restrictions in a vector autoregression
and reports long-run multipliers with bootstrapped confidence bands. The
results suggest that some sectors seem to be affected differently than
others, as well as significant heterogeneity across countries. The results
suggest the strongest effects in the low inflation countries Germany and
Japan as has been found in similar studies. In contrast to research using
growth regressions, the evidence suggests a positive long-run effect of
inflation on output.
Journal: Applied Economics
Pages: 1197-1207
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721307
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721307
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1197-1207
Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Hao Chen
Author-X-Name-First: Wen-Hao
Author-X-Name-Last: Chen
Title: The impact of the employment insurance repayment policy: nonexperimental approaches
Abstract:
This research examines the impact of the strengthened repayment provision
under the Employment Insurance (EI) system in Canada. The provision has
introduced an increase in benefit repayment rates and a reduction in the
repayment threshold. Without a randomized experiment, this article uses
various nonexperimental approaches, particularly matching, to estimate the
policy effect. Using data from the Survey of Changes in Employment (CIE)
and the Survey of Labour and Income Dynamics (SLID), the results suggest
that the new repayment policy has reduced the probabilities of filing a
claim among workers whose annual income is equal to or greater than $48
750. The estimated decline in the claim rate ranges between 6 and 12
percentage points, depending on the datasets. The results appear to be
robust regardless of the methods of estimation.
Journal: Applied Economics
Pages: 1209-1226
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721315
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721315
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1209-1226
Template-Type: ReDIF-Article 1.0
Author-Name: Akhter Faroque
Author-X-Name-First: Akhter
Author-X-Name-Last: Faroque
Author-Name: William Veloce
Author-X-Name-First: William
Author-X-Name-Last: Veloce
Title: Fundamentals versus the leading index-the forecasting of Canada's output growth since 1991: an encompassing approach
Abstract:
We evaluate the ability of Statistics Canada's Composite Leading Index to
forecast Canada's real Gross Domestic Product (GDP) growth rate in the
backdrop of the Duguay (1994, JME) model and also the dynamic and the
error-correction variants of the Duguay model, that already include the
'fundamentals' of the Canadian business cycle. The results show that
integrating the index in these models substantially improve the in-sample
fit of the models and also provide an explanation for the 'perplexingly'
large influence of the US real GDP on aggregate spending in the Canadian
economy. Out-of-sample forecasts over the inflation-targeting regime
(January 1991-April 2004), evaluated using the forecast encompassing
tests, confirm that the index contains an important amount of new
information about the future growth rate, quite apart from the information
contained in the fundamentals.
Journal: Applied Economics
Pages: 1227-1243
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721364
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721364
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1227-1243
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Luis Jimenez
Author-X-Name-First: Juan Luis
Author-X-Name-Last: Jimenez
Author-Name: Jordi Perdiguero
Author-X-Name-First: Jordi
Author-X-Name-Last: Perdiguero
Title: Regional finance and competition policy: the Canary Islands petrol market
Abstract:
Market competition levels affect all agents of an economy: businesses,
consumers and the State. Traditional analysis has evaluated the State's
effects on the other agents, but no analysis has been conducted regarding
the inverse relationship. Thus, the aim of this study is to estimate the
tributary income losses that low levels of competition in the retail
petrol market could cause in it, using the data from Canary Islands
Autonomous Community. First, we will use Parker and Roller's methodology
(1997) to measure the level of competition and confirm a deficiency. Then,
using estimated rates, we will determine the differences that would appear
in tributary income if the market were to behave as a Cournot's model. Our
results show that the lack of competition causes a substantial loss of
tributary income for this region, somewhere between 5and 10% of the real
income from the tax on unleaded petrol for the year 2004.
Journal: Applied Economics
Pages: 1245-1255
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721224
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721224
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1245-1255
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Macri
Author-X-Name-First: Joseph
Author-X-Name-Last: Macri
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Dipendra Sinha
Author-X-Name-First: Dipendra
Author-X-Name-Last: Sinha
Title: On the robustness of alternative rankings methodologies: Australian and New Zealand economics departments, 1988 to 2002
Abstract:
Just as friendly arguments based on an ignorance of facts eventually led
to the creation of the definitive Guinness Book of World Records, any
argument about university rankings has seemingly been a problem without a
solution. To state the obvious, alternative rankings methodologies can and
do lead to different rankings. This article evaluates the robustness of
rankings of Australian and New Zealand economics teaching departments for
1988 to 2002 and 1996 to 2002 using alternative rankings methodologies,
and compares the results with the rankings obtained by Macri and Sinha
(2006). In the overall mean rankings for both 1988 to 2006 and 1996 to
2002, the University of Melbourne is ranked first, followed by UWA and
ANU.
Journal: Applied Economics
Pages: 1257-1268
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721265
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721265
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1257-1268
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Victoria Esteban
Author-X-Name-First: Maria Victoria
Author-X-Name-Last: Esteban
Author-Name: Susan Orbe-Mandaluniz
Author-X-Name-First: Susan
Author-X-Name-Last: Orbe-Mandaluniz
Title: A nonparametric approach for estimating betas: the smoothed rolling estimator
Abstract:
In this study an alternative nonparametric estimator to the Fama and
MacBeth approach for the Capital Asset Pricing Model (CAPM) estimation is
proposed. Betas and risk premiums are estimated simultaneously in order to
increase the explanatory power of the proxy for betas. A data-driven
method is proposed for selecting the smoothness degrees, which are
directly related to the subsample sizes. Based on this relation, the
traditional estimator is obtained as a particular case. Contrary to the
results obtained in other studies our empirical evidence for Spanish
market data is favourable to the CAPM.
Journal: Applied Economics
Pages: 1269-1279
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721257
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721257
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1269-1279
Template-Type: ReDIF-Article 1.0
Author-Name: Sami Keskek
Author-X-Name-First: Sami
Author-X-Name-Last: Keskek
Author-Name: Mehmet Orhan
Author-X-Name-First: Mehmet
Author-X-Name-Last: Orhan
Title: Inflation and inflation uncertainty in Turkey
Abstract:
This article investigates the relationship between inflation and
inflation uncertainty, and the impact of monetary policy on this
relationship using monthly Turkish inflation data over January 1984
to-October 2005. The results from various types of GARCH-M models indicate
that higher inflation rates lead to greater inflation uncertainty. On the
other hand, the effect of inflation uncertainty on inflation is found to
be negative due to stabilization motives' dominating the opportunistic
incentives of monetary authorities. We find strong evidence to support the
view that inflation-oriented monetary policy has power to reduce the
inflation persistence and eliminate uncertainty.
Journal: Applied Economics
Pages: 1281-1291
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721273
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721273
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1281-1291
Template-Type: ReDIF-Article 1.0
Author-Name: Natalia Pimenta Monteiro
Author-X-Name-First: Natalia Pimenta
Author-X-Name-Last: Monteiro
Title: Using propensity matching estimators to evaluate the impact of privatization on wages
Abstract:
Whether the transfer of ownership rights to the private sector leads to a
decline or increase in wage growth is theoretically ambiguous, given that
the outcome depends on the uncertain interaction between firms and
workers. Using propensity matching techniques, this article investigates
the effects of privatization on wages in the Portuguese banking industry.
The empirical results, obtained from Quadros de Pessoal for the period
between 1989 and 1997, generally show a negative (positive) short-run
(long-run) effect of privatization on relative wage growth for both men
and women retained in the privatized firms. Moreover, the results show
that the most educated and experienced (oldest) workers, as well as those
in the high skill occupational categories, were more likely to experience
a negative wage effect.
Journal: Applied Economics
Pages: 1293-1313
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721281
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721281
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1293-1313
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Bagnai
Author-X-Name-First: Alberto
Author-X-Name-Last: Bagnai
Title: Structural changes, cointegration and the empirics of Thirlwall's law
Abstract:
Thirlwall's law establishes a relation between the long-run growth rate,
the growth of exports and the long-run income elasticity of imports. The
estimation of this parameter requires cointegration techniques, which in
turn require a large span of data, thus exposing the estimates to risks of
structural changes. While this problem has been recognized in the
literature, the evidence produced is still partial, being concerned with a
very limited number of countries, and in some respects unsatisfactory. In
this article we fill this gap by assessing Thirlwall's empirical
regularity on a sample of 22 Organization for Economic Cooperation and
Development (OECD) countries using econometric techniques that allow for
the presence of a shift of unknown date in the long-run parameters. The
results are generally supportive of Thirlwall's hypothesis and allow us to
reconcile and qualify the evidence provided in the existing literature.
Journal: Applied Economics
Pages: 1315-1329
Issue: 10
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721299
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721299
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Handle: RePEc:taf:applec:v:42:y:2010:i:10:p:1315-1329
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Marlow
Author-X-Name-First: Michael
Author-X-Name-Last: Marlow
Title: Do expenditures on tobacco control decrease smoking prevalence?
Abstract:
Effectiveness of tobacco control programmes in reducing smoking
prevalence during 2001 to 2005 is examined. Tobacco control spending is
found to exert no significant effects on smoking prevalence across the 50
states. Cigarette prices are found to lower prevalence of daily smokers,
but exert no effect on nondaily smoking prevalence. Several reasons are
suggested for why these results might conflict with previous research.
These include that most previous studies examined two states (California
and Massachusetts) with long-standing tobacco control programmes and that
most studies examined periods in which many of the states in their samples
did not actively fund their programmes. Another reason may be that, unlike
most previous studies, this study controls for the possibility that
tobacco control spending is endogenous when, for example, states
exhibiting relatively low smoking prevalence are also states with
relatively high distaste for smoking and accordingly fund tobacco control
programmes more generously. A negative relation between tobacco control
spending and smoking prevalence does not necessarily indicate that higher
spending causes lower prevalence when spending is endogenously determined.
Journal: Applied Economics
Pages: 1331-1343
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721505
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721505
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1331-1343
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Durham
Author-X-Name-First: Catherine
Author-X-Name-Last: Durham
Author-Name: James Eales
Author-X-Name-First: James
Author-X-Name-Last: Eales
Title: Demand elasticities for fresh fruit at the retail level
Abstract:
The obesity epidemic in the US and elsewhere has re-doubled efforts to
understand determinants of the quality of consumers' diets. Part of the
discussion has centered on the potential of 'fat taxes' and/or the
subsidization of the purchase of fresh fruits and vegetables to coax
consumers to better diets. Whether this discussion has merit or not,
fundamental to the debate are the demand elasticities of the commodities
involved. This study employs weekly data from several retail stores on
fruit prices and sales to estimate elasticities of individual fruits.
Estimates show consumers are more responsive to price than has been found
previously.
Journal: Applied Economics
Pages: 1345-1354
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721356
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721356
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1345-1354
Template-Type: ReDIF-Article 1.0
Author-Name: Joakim Westerlund
Author-X-Name-First: Joakim
Author-X-Name-Last: Westerlund
Author-Name: Silika Prohl
Author-X-Name-First: Silika
Author-X-Name-Last: Prohl
Title: Panel cointegration tests of the sustainability hypothesis in rich OECD countries
Abstract:
This study reexamines the sustainability hypothesis by testing whether
government revenues and expenditures for eight rich OECD countries between
1977Q1 and 2005Q4 are cointegrated. For this purpose, a nonstationary
panel data approach is adopted, which is general enough to permit for
cross-country dependence as well as structural breaks representing major
shifts in fiscal policy. In contrast to many earlier studies, the results
reported in this study suggest that the sustainability hypothesis cannot
be rejected.
Journal: Applied Economics
Pages: 1355-1364
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721323
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721323
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1355-1364
Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Geraint Johnes
Author-X-Name-First: Geraint
Author-X-Name-Last: Johnes
Title: Heterogeneity and the evaluation of efficiency: the case of Italian universities
Abstract:
A random parameters stochastic frontier model is applied to Italian data
in order to evaluate the cost function and efficiency of higher education
institutions. The method yields useful information about
inter-institutional variation in cost structure and technical efficiency.
Returns to scale and scope are evaluated for the typical university, and
it is found that these returns are almost ubiquitously decreasing, a
finding with clear policy implications.
Journal: Applied Economics
Pages: 1365-1375
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721463
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721463
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1365-1375
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Norrbin
Author-X-Name-First: Stefan
Author-X-Name-Last: Norrbin
Author-Name: Aaron Smallwood
Author-X-Name-First: Aaron
Author-X-Name-Last: Smallwood
Title: Generalized long memory and mean reversion of the real exchange rate
Abstract:
Definitive evidence regarding a rapid mean reversion of the real exchange
rate is not present when using standard linear methodology, including unit
root tests and fractional integration. To consider the robustness of these
results, we use an encompassing model, the Gegenbauer AutoRegressive
Moving Average (GARMA) model, which nests as special cases the existing
linear methods. The GARMA model accommodates a complete notion of
persistence and allows shocks to dissipate slowly in a cyclical manner. We
find evidence supporting a weak version of purchasing power parity, where
equilibrium errors are long memory with strongly persistent cycles.
However, this new form of cyclical mean reversion is likely too slow to be
economically meaningful. The inability to find a strong equilibrium
attractor process, using a very general encompassing linear methodology
provides support for the recent models that allow for a nonlinear
attraction process and for shifting real exchange rate equilibria.
Journal: Applied Economics
Pages: 1377-1386
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721349
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721349
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1377-1386
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B.
Author-X-Name-Last: Bhaskara Rao
Author-Name: Toani Takirua
Author-X-Name-First: Toani
Author-X-Name-Last: Takirua
Title: The effects of exports, aid and remittances on output: the case of Kiribati
Abstract:
Country specific time-series models of the determinants of output for the
small developing island countries in the Pacific region are relatively
few. This article explores the applicability of the framework underlying
Solow (1956) to analyse the determinants output in Kiribati for the period
1970 to 2005. It is found that technical progress in Kiribati has been
negative virtually offsetting the positive effects of factor accumulation.
Aid and remittances have negative effects and exports have only a small
positive effect in the short-run.
Journal: Applied Economics
Pages: 1387-1396
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721331
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721331
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1387-1396
Template-Type: ReDIF-Article 1.0
Author-Name: Leigh Drake
Author-X-Name-First: Leigh
Author-X-Name-Last: Drake
Author-Name: Terence Mills
Author-X-Name-First: Terence
Author-X-Name-Last: Mills
Title: Trends and cycles in Euro area real GDP
Abstract:
This article examines the time-series properties of real Gross Domestic
Product (GDP) in the Euro area as a whole, both prior to and after the
adoption of the Euro in January 1999. We employ the relatively recent
'optimal approximation' band pass filter developed by Christiano and
Fitzgerald (2003) in order to identify a Eurozone business cycle. We also
utilize two alternative assumptions regarding the behaviour of the trend
component of Euro area real GDP. The empirical results suggest that the
single currency experiment appears to have reduced trend growth in the
Eurozone, both ex ante during the Maastricht nominal convergence phase,
and also ex post, during the period 2001Q1 to 2006Q1. With respect to
cyclical behaviour, we identify a very robust measure of the Eurozone
business cycle in the post-1994 period which does not appear to be
sensitive to the particular assumption made regarding the trend rate of
growth of real GDP.
Journal: Applied Economics
Pages: 1397-1401
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721372
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721372
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1397-1401
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Yuan Leon Li
Author-X-Name-First: Ming-Yuan Leon
Author-X-Name-Last: Li
Title: Dynamic hedge ratio for stock index futures: application of threshold VECM
Abstract:
This study represents one of the first papers in stock-index-futures
arbitrage literature to investigate the effects of arbitrage threshold on
stock index futures hedging effectiveness by using threshold vector error
correction model (hereafter threshold VECM). Moreover, in contrast to
prior studies focusing on examining case studies involving mature stock
markets, this study not only adopts US S&P 500 stock market as the sample
but also adds an analysis of one emerging stock market, Hungarian BSI and
examines the differences between them. Finally, this investigation employs
a rolling estimation process to examine the impact of arbitrage threshold
behaviours on the setting of futures hedging ratio. The empirical findings
of this study are consistent with the following notions. First, arbitrage
behaviour reduces co-movement between futures and spot markets and
increases the volatility of both futures and spot markets. Second, this
article denotes the outer regime of futures-spot market for the case of
Hungarian BSI (US S&P 500) as a crisis (an unusual) condition. Moreover,
arbitrage threshold behaviours make remarkable (unremarkable) shift on
optimal hedge ratio between two different market regimes for the case of
Hungarian BSI (US S&P 500). Finally, the framework involving
regime-varying hedge ratio designed in this study provides a more
efficient futures hedge ratio design for Hungarian BSI stock market, but
not for US S&P 500 stock market.
Journal: Applied Economics
Pages: 1403-1417
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721380
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721380
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1403-1417
Template-Type: ReDIF-Article 1.0
Author-Name: Jalal Siddiki
Author-X-Name-First: Jalal
Author-X-Name-Last: Siddiki
Title: The Ricardian equivalence hypothesis: evidence from Bangladesh
Abstract:
This article examines the Ricardian equivalence hypothesis (REH) and its
sources of failure in the case of Bangladesh using various theoretical
specifications, annual data from 1974-2001 and linear and nonlinear time
series techniques. The general findings tend to invalidate the REH: a
finite time horizon and the presence of liquidity-constrained individuals
are the sources of deviation from the REH. Empirical results reveal that
real per-capita private consumption (C) under various specifications is
cointegrated generally at the 5% level with real per-capita income (Y),
government expenditure before and after interest rate repayments (G and
G2), taxes (T) and the interest rate (r). Results reveal that an increase
in G, G2, T and r reduces C and that an increase in budget deficits raises
trade deficits. These results highlight the importance of fiscal policies
in boosting private consumption and controlling trade deficits, which are
the prime goals of stabilization policies being followed by Bangladesh.
Journal: Applied Economics
Pages: 1419-1435
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721414
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721414
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1419-1435
Template-Type: ReDIF-Article 1.0
Author-Name: Jinliang Li
Author-X-Name-First: Jinliang
Author-X-Name-Last: Li
Author-Name: Chihwa Kao
Author-X-Name-First: Chihwa
Author-X-Name-Last: Kao
Author-Name: Wei David Zhang
Author-X-Name-First: Wei David
Author-X-Name-Last: Zhang
Title: Bounded influence estimator for GARCH models: evidence from foreign exchange rates
Abstract:
Previous research indicates that the maximum likelihood estimates of
Generalized Autoregressive Conditional Heteroscedasticity (GARCH) models
on foreign exchange rates, under various distributional assumptions, are
sensitive to the presence of outliers. The advantage of the proposed
Bounded Influence Estimator (BIE) is that it limits the influence of a
small subset of data and is asymptotically normal. The BIE provides more
consistent and robust estimates than Maximum Likelihood Estimator (MLE)
and semi-parametric estimator, both of which tend to underestimate
volatility persistence due to outliers. It is thus robust to outliers and
model misspecification. Results of BIE estimates of GARCH models on the
exchange rate series of five major currencies indicate that BIE offers an
efficient mechanism for down-weighting outlying observations and is a
competitive alternative to MLE.
Journal: Applied Economics
Pages: 1437-1445
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721422
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721422
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1437-1445
Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yil Choi
Author-X-Name-First: Yong-Yil
Author-X-Name-Last: Choi
Title: Relative government size in globalization and its welfare implications
Abstract:
As globalization spreads across the world, countries are experiencing
growing competitive pressure in many fields. Since the role of government
is needed to change in this global era, the so-called government-size
debate has become fierce. This article provides a measure of relative
government size in globalization, and clarifies the welfare effect of
relative government size in globalization applying a simplified dynamic
utility theoretical approach. The main finding is that there is no
systematic relationship between relative government size and relative
welfare in globalization; such relation depends on behavioural parameters
such as the elasticity of inter-temporal substitution of consumption and
the disutility of labour. This result suggests that finding prerequisites
for government consumption to play a welfare-improving role in
globalization is more beneficial than the government-size debate.
Journal: Applied Economics
Pages: 1447-1453
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721430
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721430
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1447-1453
Template-Type: ReDIF-Article 1.0
Author-Name: O. Henry
Author-X-Name-First: O.
Author-X-Name-Last: Henry
Author-Name: N. Olekalns
Author-X-Name-First: N.
Author-X-Name-Last: Olekalns
Title: Peacock and Wiseman's displacement hypothesis: some new long-run evidence for the UK
Abstract:
This article presents new evidence on the ability of Peacock and
Wiseman's displacement hypothesis to explain temporal increases in the
ratio of government expenditure to Gross Domestic Product (GDP) in the UK.
Using univariate modelling techniques that are robust to structural
changes in the underlying data generating process and a data set extending
back to 1836, we find four instances where the ratio of expenditure to GDP
displays an evidence of a structural break. Two of these breaks coincide
with major social upheavals as predicted by the displacement hypothesis.
Journal: Applied Economics
Pages: 1455-1460
Issue: 11
Volume: 42
Year: 2010
X-DOI: 10.1080/00036841003668873
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003668873
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Handle: RePEc:taf:applec:v:42:y:2010:i:11:p:1455-1460
Template-Type: ReDIF-Article 1.0
Author-Name: Nidhiya Menon
Author-X-Name-First: Nidhiya
Author-X-Name-Last: Menon
Title: Investment credit and child labour
Abstract:
It is generally assumed that credit has a positive effect on children's
schooling among poor households. This article shows that need not be the
case when households obtain credit for investment purposes. In fact,
investment loans may not have any effect on the likelihood of schooling
for children who work in their family business. Our estimates confirm that
this is the case; credit used to finance investments has no effect on the
odds of schooling for employed children. This may be because investment
loans increase children's labour productivity, which in turn increases the
opportunity cost of schooling. The results of this study suggest that
improving access to credit may not, by itself, constitute a solution to
the problem of child labour in developing countries.
Journal: Applied Economics
Pages: 1461-1479
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721471
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721471
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1461-1479
Template-Type: ReDIF-Article 1.0
Author-Name: Jeff DeSimone
Author-X-Name-First: Jeff
Author-X-Name-Last: DeSimone
Title: Drinking and academic performance in high school
Abstract:
I investigate the extent to which negative alcohol use coefficients in
Grade Point Average regressions reflect unobserved heterogeneity rather
than direct effects of drinking, using 2001 and 2003 Youth Risk Behaviour
Survey data on high school students. Results illustrate that omitted
factors are quite important. Drinking coefficient magnitudes fall
substantially in regressions that control for risk and time preference,
mental health, self-esteem and consumption of other addictive substances.
Moreover, the impact of binge drinking is negligible for students who are
less risk averse, heavily discount the future or use other drugs. However,
effects that remain significant after accounting for unobserved
heterogeneity and are relatively large for risk averse, future-oriented
and drug-free students suggest that binge drinking might slightly worsen
academic performance. Consistent with this, the relationship between
grades and drinking without binging is small and insignificant on the
extensive margin and positive on the intensive margin.
Journal: Applied Economics
Pages: 1481-1497
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721554
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721554
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1481-1497
Template-Type: ReDIF-Article 1.0
Author-Name: Veronique Genre
Author-X-Name-First: Veronique
Author-X-Name-Last: Genre
Author-Name: Ramon Gomez Salvador
Author-X-Name-First: Ramon Gomez
Author-X-Name-Last: Salvador
Author-Name: Ana Lamo
Author-X-Name-First: Ana
Author-X-Name-Last: Lamo
Title: European women: why do(n't) they work?
Abstract:
To increase labour market participation is a major challenge currently
faced by the EU, and attracting women into the labour force appears as a
promising avenue to do so. Therefore, a clear understanding of what the
factors influencing the evolution of female participation rates are in
Europe is essential for a successful design of policy measures aiming at
increasing participation rates. This article provides empirical evidence
on the role that institutions have played in determining participation
rates of women in the European labour markets. Our findings discard any
doubt on the influence of institutions on women's participation in Europe.
The strictness of labour market institutions negatively affects female
participation rates. We also find that institutional features aimed at
reconciling motherhood with professional life such as maternity leave
schemes and part-time work favour participation rates of prime-age women.
Additionally, fertility rates and education enrolment have been relevant
for the evolution of participation rates during the sample period
considered for prime-age and young females, respectively, while cohort
effects drive the developments of older females.
Journal: Applied Economics
Pages: 1499-1514
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721547
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721547
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1499-1514
Template-Type: ReDIF-Article 1.0
Author-Name: Christophe Hurlin
Author-X-Name-First: Christophe
Author-X-Name-Last: Hurlin
Title: What would Nelson and Plosser find had they used panel unit root tests?
Abstract:
In this study, we systemically apply nine recent panel unit root tests to
the same 14 macroeconomic and financial series as those considered in the
seminal paper by Nelson and Plosser (1982). The data covers OECD countries
from 1950 to 2003. Our results clearly point out the difficulty that
applied econometricians would face when they want to get a simple and
clear-cut diagnosis with panel unit root tests. We confirm the fact that
panel methods must be very carefully used for testing unit roots in
macroeconomic or financial panels. More precisely, we find mitigated
results under the cross-sectional independence assumption, since the unit
root hypothesis is rejected for many macroeconomic variables. When
international cross-correlations are taken into account, conclusions
depend on the specification of these cross-sectional dependencies. Two
groups of tests can be distinguished. The first group tests are based on a
dynamic factor structure or an error component model. In this case, the
nonstationarity of common factors (international business cycles or growth
trends) is not rejected, but the results are less clear with respect to
idiosyncratic components. The second group tests are based on more general
specifications. Their results are globally more favourable to the unit
root assumption.
Journal: Applied Economics
Pages: 1515-1531
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721539
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721539
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1515-1531
Template-Type: ReDIF-Article 1.0
Author-Name: Vincent Bouvatier
Author-X-Name-First: Vincent
Author-X-Name-Last: Bouvatier
Title: Hot money inflows and monetary stability in China: how the People's Bank of China took up the challenge
Abstract:
Nonforeign direct investment capital inflows in China were particularly
strong in 2003 and 2004. They have led to a rapid accumulation of
international reserves and they may have provided excess liquidity to the
Chinese economy. This article, investigates how the central bank of China
managed the rapid build-up of international reserves in 2003 and 2004. The
relationship between real international reserves and real domestic credit
is examined with a Vector Error Correction Model, estimated on monthly
data from January 1997 to March 2006. Empirical results show that this
relationship was negative, which suggests that the central bank succeeded
in slowing down real domestic credit when real international reserves
increased. Direct and indirect Granger causality tests are implemented to
show how the People's Bank of China proceeded to control domestic credit.
Journal: Applied Economics
Pages: 1533-1548
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721513
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721513
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1533-1548
Template-Type: ReDIF-Article 1.0
Author-Name: Julio Lucia
Author-X-Name-First: Julio
Author-X-Name-Last: Lucia
Author-Name: Angel Pardo
Author-X-Name-First: Angel
Author-X-Name-Last: Pardo
Title: On measuring speculative and hedging activities in futures markets from volume and open interest data
Abstract:
This article provides a critical assessment of the line of research that
measures speculative and hedging activities in futures markets from volume
and open interest data. It makes several contributions. First, a detailed
theoretical analysis of the measures proposed in the previous literature
as proxies for speculative activity clarifies the circumstances in which
they fail, as well as the assumptions that have to be made, when they are
used as intended. Second, we propose a new way of combining the volume and
the open interest figures, which provides additional information regarding
the type of trading activity that takes place in the market on a given
date. Finally, we analyse empirically the basic statistical properties of
all the ratios when they are applied to real data for some of the stock
index futures contracts most actively traded in the world. This empirical
analysis shows the diverse behaviour of the ratios when they are applied
to a common sample of real data, which confirms our previous theoretical
findings. Our contributions should be taken into account when any of the
measures is used as a proxy for the relative importance of speculative
demand in empirical analyses.
Journal: Applied Economics
Pages: 1549-1557
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721489
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721489
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1549-1557
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Macri
Author-X-Name-First: Joseph
Author-X-Name-Last: Macri
Author-Name: Dipendra Sinha
Author-X-Name-First: Dipendra
Author-X-Name-Last: Sinha
Title: How much influence do economics professors have on rankings? The case of Australia and New Zealand
Abstract:
This study ranks Australian and New Zealand economics teaching
departments on the basis of the research productivity of its economics
professors in economics teaching departments using quality adjusted
journal articles listed on the ECONLIT database for the periods 1988 to
2002 and for 1996 to 2002. The per capita research productivity of
professors is highest for University of Melbourne, University of Western
Australia and University of Canterbury. For a number of economics
departments, the per capita research productivity is lower than the
research productivity of all faculty members, using a number of criteria
for 1988-2002 and 1996-2002. These universities are University of
Auckland, Royal Melbourne Institute of Technology University, Griffith
University and Macquarie University.
Journal: Applied Economics
Pages: 1559-1567
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721562
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721562
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1559-1567
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bauer
Author-X-Name-First: Thomas
Author-X-Name-Last: Bauer
Author-Name: Mathias Sinning
Author-X-Name-First: Mathias
Author-X-Name-Last: Sinning
Title: Blinder-Oaxaca decomposition for Tobit models
Abstract:
In this article, a decomposition method for Tobit models is derived,
which allows the differences in observed outcome variables between two
groups to be decomposed into a part that is explained by differences in
observed characteristics and a part attributable to differences in the
estimated coefficients. Monte Carlo simulations demonstrate that in the
case of censored dependent variables this decomposition method produces
more reliable results than the conventional Blinder-Oaxaca decomposition
for linear regression models. Finally, our method is applied to a
decomposition of the gender wage gap using German data.
Journal: Applied Economics
Pages: 1569-1575
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721612
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721612
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1569-1575
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Santos
Author-X-Name-First: Carlos
Author-X-Name-Last: Santos
Author-Name: Maria Alberta Oliveira
Author-X-Name-First: Maria Alberta
Author-X-Name-Last: Oliveira
Title: Assessing French inflation persistence with impulse saturation break tests and automatic general-to-specific modelling
Abstract:
This article has three different motivations. Firstly, we wish to
contribute to the debate on whether French inflation has been persistent
since the mid-eighties. Empirical evidence in this domain has been mixed.
We use the standard method of testing for breaks in the mean of the
inflation series to conclude whether possible unit root findings are the
result of neglected breaks. Then, we build standard autoregressive
representations of inflation, using an automatic general-to-specific
approach. We conclude against inflation persistence in the sample period,
and the point estimates of persistence we obtain are several percentage
points below those achieved with other break tests and model selection
methods. Moreover, our final model is congruent. Secondly, we provide the
first empirical application of the new impulse saturation break test. The
resulting estimates of the break dates are in line with other literature
findings and have a sound economic meaning, confirming the good
performance the test had revealed in theoretical and simulation studies.
Finally, we also illustrate the shortcomings of the Bai-Perron test when
applied to a small sample with high serial correlation. Indeed, we show
the Bai-Perron break dates' estimates would not allow us to build a
congruent autoregressive representation of inflation.
Journal: Applied Economics
Pages: 1577-1589
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721521
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721521
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1577-1589
Template-Type: ReDIF-Article 1.0
Author-Name: Efthimia Tsakiridou
Author-X-Name-First: Efthimia
Author-X-Name-Last: Tsakiridou
Author-Name: Agapi Somwaru
Author-X-Name-First: Agapi
Author-X-Name-Last: Somwaru
Author-Name: Konstadinos Mattas
Author-X-Name-First: Konstadinos
Author-X-Name-Last: Mattas
Title: Middle East and North Africa countries' agricultural export potentials under trade reforms
Abstract:
Middle East and North Africa (MENA) countries' future stand in the
world's economy depends to a large extent on the potentials of their
agriculture to perform in a free trade world. European Union (EU) is the
largest market for agricultural products of MENA countries, though new
outlets and new partnerships can expand the market of their products.
Enhancing agriculture's potentials safeguards the economy's general
expansion and impede the flee of MENA countries' huge labour reserves to
the developed world. In this work, introducing a few possible trade
reforms, a general equilibrium model is employed to assess the impacts
upon region's export potentials and welfare changes. Selecting certain
distinct scenarios from a wide spectrum of anticipated trade reforms, and
feeding them into the model, insights on the direction of the expected
changes and rough estimates of accrued benefits can be extracted. The
model results suggest that the region might benefit the most under special
provisions for developing countries in a World Trade Organization (WTO)
agreement, while in the case of EU-Med agreement, agricultural trade will
benefit MENA countries and can induce economic growth through the
expansion of agricultural exports.
Journal: Applied Economics
Pages: 1591-1599
Issue: 12
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721497
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721497
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Handle: RePEc:taf:applec:v:42:y:2010:i:12:p:1591-1599
Template-Type: ReDIF-Article 1.0
Author-Name: Yuqing Zheng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Zheng
Author-Name: Henry Kinnucan
Author-X-Name-First: Henry
Author-X-Name-Last: Kinnucan
Author-Name: Harry Kaiser
Author-X-Name-First: Harry
Author-X-Name-Last: Kaiser
Title: Measuring and testing advertising-induced rotation in the demand curve
Abstract:
Advertising can rotate the demand curve if it changes the dispersion of
consumers' valuations. We provide an elasticity form measure of the
advertising-induced demand curve rotation in five demand models and test
for its presence in the US nonalcoholic beverage market. The Almost Ideal
Demand System (AIDS) model reveals that doubling advertising spending
rotates the demand curves clockwise for milk, and coffee and tea with
associated slope changes of 7 and 12%. Soft-drink advertising rotates its
demand curve counterclockwise. Our policy suggestion is that milk and
soft-drink firms time advertising to coincide with high-and low-price
periods, respectively.
Journal: Applied Economics
Pages: 1601-1614
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721570
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721570
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1601-1614
Template-Type: ReDIF-Article 1.0
Author-Name: Li Rui
Author-X-Name-First: Li
Author-X-Name-Last: Rui
Author-Name: Zhu Xi
Author-X-Name-First: Zhu
Author-X-Name-Last: Xi
Title: Econometric analysis of credit constraints of chinese rural households and welfare loss
Abstract:
Using recent survey data of Chinese rural households, we estimate the
impact of credit constraints on Chinese rural households' income and
consumption. Results reveal that 71% of rural households are rationed in
the credit markets. The credit constraints have significant negative
effects on the income and consumption of rural households. The
expenditures on education and medical treatments, the size of land
holdings, household head education and the balance of financial capital
all affect the demand of credit. Personal connections (relationship) are
the most important determinate of the supply for credit.
Journal: Applied Economics
Pages: 1615-1625
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721604
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721604
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1615-1625
Template-Type: ReDIF-Article 1.0
Author-Name: Janice Hauge
Author-X-Name-First: Janice
Author-X-Name-Last: Hauge
Author-Name: Mark Jamison
Author-X-Name-First: Mark
Author-X-Name-Last: Jamison
Title: Effects of using specific versus general data in social program research
Abstract:
We present a comparison of results of similar analyses of a particular
social program using two sources of data: one representative of the
general population, and one representative of the population that actually
is eligible for the social program. To do this, we focus on a particular
public assistance program as implemented in Florida as our public policy
program of choice. We compare the results of an analysis of the program's
participation rates using US Census data for the general population of
Florida to the results of the exact same model using a dataset that
includes only the population of Florida that is actually eligible for the
program. We find that while generally signs of effects remain the same,
they do not always remain the same; moreover, significance differs, and
the marginal effects of various demographic and socio-economic factors on
program participation rates vary greatly. We submit that such differences
are important for policymakers to recognize so that they can effectively
target programs to those individuals and geographic areas most in need of
such programs.
Journal: Applied Economics
Pages: 1627-1639
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721653
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721653
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1627-1639
Template-Type: ReDIF-Article 1.0
Author-Name: Subal Kumbhakar
Author-X-Name-First: Subal
Author-X-Name-Last: Kumbhakar
Title: Efficiency and productivity of world health systems: where does your country stand?
Abstract:
This article deals with estimating efficiency of world health systems
using panel data on World Health Organization (WHO) member countries. The
Stochastic Frontier (SF) approach is used for this purpose. We evaluate
absolute efficiency as well as rankings and their sensitivity across
alternative model specifications using both output-maximizing and
cost-minimizing frameworks. We also compare productivity of health service
(among countries) derived from the output-maximizing and cost-minimizing
models. Results show that efficiency rankings of countries vary
substantially depending on whether the goal of healthcare provision is
output maximization or health cost minimization. The same applies to
different SF model specifications.
Journal: Applied Economics
Pages: 1641-1659
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721588
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721588
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1641-1659
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Title: Is there a unit root in the inflation rate? New evidence from panel data models with multiple structural breaks
Abstract:
In this article, we examine whether or not the inflation rate for 17 OECD
countries can be modelled as a stationary process. We find that (1)
conventional univariate unit root tests without any structural breaks
generally reveal that the inflation rate contains a unit root; (2) the
KPSS univariate test with multiple structural breaks reveals that for 10
out of 17 countries inflation is stationary; and (3) the KPSS panel unit
root test reveals strong evidence for stationarity of the inflation rate
for panels consisting of countries which were declared nonstationary by
univariate tests.
Journal: Applied Economics
Pages: 1661-1670
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721596
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721596
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1661-1670
Template-Type: ReDIF-Article 1.0
Author-Name: P. S. Sephton
Author-X-Name-First: P. S.
Author-X-Name-Last: Sephton
Title: On the empirical size of Nielsen's multivariate likelihood ratio test of fractional integration
Abstract:
Nielsen (2004) provides multivariate maximum likelihood procedures to
test whether several series are fractionally integrated. This note
examines the finite sample size of the likelihood ratio tests applied to a
bivariate system experiencing breaks in means. The results suggest that
tests of a common unit root are somewhat undersized in small samples.
Journal: Applied Economics
Pages: 1671-1679
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721638
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721638
File-Format: text/html
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1671-1679
Template-Type: ReDIF-Article 1.0
Author-Name: Sarath Divisekera
Author-X-Name-First: Sarath
Author-X-Name-Last: Divisekera
Author-Name: Jim Deegan
Author-X-Name-First: Jim
Author-X-Name-Last: Deegan
Title: An analysis of consumption behaviour of foreign tourists in Ireland
Abstract:
The objective of this article is to analyse the consumption behaviour of
foreign tourists in Ireland. Based on the Almost Ideal Demand System, five
demand systems are estimated, four representing the major source markets
of tourists to Ireland, namely from Britain, North America, Mainland
Europe and Rest of the World; and one aggregate model based on a pooled
sample. Each system included six commodity aggregates representing the
major consumables of tourists. Estimated models were statistically
significant and the derived elasticities are theoretically consistent and
empirically plausible. While there are some variations in the consumption
patterns of tourists from different source markets, reflecting differences
in consumer preferences and consumption habits, in general, tourist demand
for the various Irish tourism goods and services is found to be price
inelastic. This finding is consistent with a priori expectations, as
tourists are obliged to consume whatever is available at the destination
they visit. The lack of substitutes and perfect information on product
markets offer limited consumption opportunities for the tourists.
Nonetheless, the cross-price elasticity values for all commodities across
the source markets indicate gross complementarity, which suggests that
latent price sensitivity exists in the background. This is an area that
needs further investigation and this finding may have significant, yet
unknown, consequences for repeat visitation.
Journal: Applied Economics
Pages: 1681-1697
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721646
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721646
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1681-1697
Template-Type: ReDIF-Article 1.0
Author-Name: Hatice Pehlivan Jenkıns
Author-X-Name-First: Hatice Pehlivan
Author-X-Name-Last: Jenkıns
Author-Name: Salih Turan Katırcıoglu
Author-X-Name-First: Salih Turan
Author-X-Name-Last: Katırcıoglu
Title: The bounds test approach for cointegration and causality between financial development, international trade and economic growth: the case of Cyprus
Abstract:
This study employs the bounds test for co-integration and Granger
causality tests to investigate the long-run equilibrium relationship and
the direction of causality between financial development, international
trade and real income growth for the Cyprus economy. The results of the
study reveal that financial development as measured by broad money (M2),
international trade and real income growth are cointegrated; thus, a
long-run equilibrium relationship can be inferred among these three
variables. On the other hand, Granger causality test results suggest that
in Cyprus the growth in real income stimulates the growth of international
trade (both exports and imports) and the growth of money supply.
Furthermore, growth in imports of goods and services also stimulates a
growth in exports of goods and services of Cyprus. Although this result
contradicts our initial expectations, it indicates the importance of
capital inflows in Cyprus that plays a major role in financing the
investments mainly in the tourism sector. As a final point, the results of
this study reveal that the supply-leading, export-led growth and
import-led growth hypotheses are not confirmed by this study whereas the
demand-following hypothesis can be justified for the Cypriot economy when
M2 measure of money supply is under consideration.
Journal: Applied Economics
Pages: 1699-1707
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721661
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721661
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1699-1707
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Saona
Author-X-Name-First: Paolo
Author-X-Name-Last: Saona
Author-Name: Eleuterio Vallelado
Author-X-Name-First: Eleuterio
Author-X-Name-Last: Vallelado
Title: Is the use of bank debt as a governance mechanism conditioned by the financial system? The cases of Chile and Spain
Abstract:
We test whether the use of bank debt as a governance mechanism is
conditioned by the financial system in which firms operate. Our results
indicate that the legal and institutional environment determines the use
of bank debt to finance growth opportunities. Firms use bank debt to
finance their growth opportunities when the country's banking system
contributes to solving agency and asymmetric information problems and
avoiding information monopoly costs. The evolutionary process of the
financial systems in each country means that market imperfections such as
information asymmetry or agency costs can have a diverse influence on
firms' bank debt decisions.
Journal: Applied Economics
Pages: 1709-1726
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736065
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736065
File-Format: text/html
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1709-1726
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Jose Veiga
Author-X-Name-First: Francisco Jose
Author-X-Name-Last: Veiga
Author-Name: Linda Goncalves Veiga
Author-X-Name-First: Linda Goncalves
Author-X-Name-Last: Veiga
Title: The impact of local and national economic conditions on legislative election results
Abstract:
Using data for 278 Portuguese mainland municipalities, we estimate the
impact of national and local economic conditions on legislative electoral
outcomes over the period from the reestablishment of democracy in 1974 to
the present. Empirical results indicate that the performance of the
national economy is important but that the municipal situation also
conditions electoral outcomes.
Journal: Applied Economics
Pages: 1727-1734
Issue: 13
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736107
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736107
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Handle: RePEc:taf:applec:v:42:y:2010:i:13:p:1727-1734
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Agee
Author-X-Name-First: Mark
Author-X-Name-Last: Agee
Author-Name: Thomas Crocker
Author-X-Name-First: Thomas
Author-X-Name-Last: Crocker
Title: Directional heterogeneity of environmental disamenities: the impact of crematory operations on adjacent residential values
Abstract:
A hedonic study of residential house sales in Rawlins, Wyoming, was
conducted to estimate the impact of an environmental shock from a new
point source upon adjacent residential property values. We use a unique
data base of house sale prices and associated house attributes, including
structural and neighbourhood characteristics and geographic distances and
directions from the source of the shock, atmospheric emissions from a new
crematory. Our data spans 27 months of house sales: 7 months before, and
20 months after the startup of crematory operations. Results indicate that
proximity, measured both in terms of direction and distance from the
crematory, imparts a statistically significant negative impact on average
house sale prices-an increase of 0.3 to 3.6% of average sale price for
every one-tenth mile increase up to one-half mile in distance away from
the crematory, but depending on direction from the crematory. This
distance benefit increases somewhat with calendar time only for houses
located west of the crematory.
Journal: Applied Economics
Pages: 1735-1745
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721679
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721679
File-Format: text/html
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1735-1745
Template-Type: ReDIF-Article 1.0
Author-Name: Wim Vijverberg
Author-X-Name-First: Wim
Author-X-Name-Last: Vijverberg
Author-Name: Joop Hartog
Author-X-Name-First: Joop
Author-X-Name-Last: Hartog
Title: On the distribution of job characteristics: an analysis of the DOT data
Abstract:
We analyse the information in the Dictionary of Occupational Titles to
characterize the structure of labour demand. Two dimensions, an
intellectual factor and a dexterity factor, capture two-thirds of the
variance in job requirements; the remaining (co-)variance cannot be easily
structured. Simple linear relationships go a long way in describing the
matching between job activities and required worker qualities (Intellect
for complex relations to Data and to People, Dexterity for complex
relations to Things). There is no dichotomy between mathematical and
verbal required skills. Poor working conditions are not restricted to
workers in low-level jobs; we find strong support for compensating wage
differentials. At more intellectual jobs, men receive less wage
compensation for working conditions, while in jobs requiring greater
dexterity they receive more. Such a relationship is absent for women.
Journal: Applied Economics
Pages: 1747-1760
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736115
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736115
File-Format: text/html
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1747-1760
Template-Type: ReDIF-Article 1.0
Author-Name: Caitlin Knowles Myers
Author-X-Name-First: Caitlin Knowles
Author-X-Name-Last: Myers
Author-Name: Marcus Bellows
Author-X-Name-First: Marcus
Author-X-Name-Last: Bellows
Author-Name: Hiba Fakhoury
Author-X-Name-First: Hiba
Author-X-Name-Last: Fakhoury
Author-Name: Douglas Hale
Author-X-Name-First: Douglas
Author-X-Name-Last: Hale
Author-Name: Alexander Hall
Author-X-Name-First: Alexander
Author-X-Name-Last: Hall
Author-Name: Kaitlin Ofman
Author-X-Name-First: Kaitlin
Author-X-Name-Last: Ofman
Title: Ladies first? A field study of discrimination in coffee shops
Abstract:
Despite anecdotal and survey evidence suggesting the presence of
discrimination against customers in stores, restaurants and other
small-transaction consumer markets, few studies exist that identify or
quantify the nature of any unequal treatment. We provide evidence from a
field study of wait times in Boston-area coffee shops that suggests that
female customers wait an average of 20 seconds longer for their orders
than do male customers even when controlling for gender differences in
orders. We find that this differential in wait times is inverse to the
proportion of employees who are female and directly related to how busy
the coffee shop is at the time of the order. This supports the conclusion
that the observed differential is driven at least in part by employee
animus and/or statistical discrimination rather than unobserved
heterogeneity in the purchasing behaviour of female customers.
Journal: Applied Economics
Pages: 1761-1769
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701721687
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701721687
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1761-1769
Template-Type: ReDIF-Article 1.0
Author-Name: Onsurang Pipatchaipoom
Author-X-Name-First: Onsurang
Author-X-Name-Last: Pipatchaipoom
Author-Name: Stefan Norrbin
Author-X-Name-First: Stefan
Author-X-Name-Last: Norrbin
Title: Is the real interest rate parity condition affected by the method of calculating real interest rates?
Abstract:
Although the real interest rate parity (RIRP) hypothesis has been
extensively tested, there are no conclusive findings. We argue that the
mixed findings are a result of the different methods used to calculate the
real interest rate. In this article, we examine whether the RIRP holds for
four OECD countries using five different methods for computing the real
interest rate. The results indicate that the connection between real
interest rates tends to be sensitive to the computational method of the
real interest rate. Thus, authors have to be careful when comparing
results across existing studies, since the type of computational method
might be responsible for differences in conclusions of the validity of the
RIRP.
Journal: Applied Economics
Pages: 1771-1782
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736073
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736073
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1771-1782
Template-Type: ReDIF-Article 1.0
Author-Name: Jef Vuchelen
Author-X-Name-First: Jef
Author-X-Name-Last: Vuchelen
Author-Name: Stijn Caekelbergh
Author-X-Name-First: Stijn
Author-X-Name-Last: Caekelbergh
Title: Explaining public investment in Western Europe
Abstract:
Budgetary consolidations are considered the obvious explanation for the
decline in public investment that most Western European countries
experienced over the past three decades. However, regressions based on
budgetary variables tend to overpredict public investment during the
post-1990 period, i.e. when the budgetary stress eased. We supplement the
budgetary consolidation approach to public investment with ideas from
behavioural economics to explain why these investments do not increase
when additional budgetary resources are available. We use the peak/end
evaluation procedure to capture the frustration of voters as cuts in
government consumption expenditures accumulate. This 'memory-effect' of
budgetary consolidations implies that voters recall the previous peak in
government consumption expenditures. They remain discontent as long as
current expenditures are below the peak value. When the budgetary
situation improves, policy makers will choose to increase government
consumption because this is electorally more rewarding. Public investment
will thus decline when budgetary consolidations are imposed and will
remain constant when additional budgetary resources emerge. We test for a
memory-effect by introducing expenditure gaps in public investment
regressions. These gaps equal the difference between the highest
previously observed primary government consumption to Gross Domestic
Product (GDP) ratio and the current ratio. The regression results for most
EU countries support our assumption.
Journal: Applied Economics
Pages: 1783-1796
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736180
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736180
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1783-1796
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Dimitrios Drakos
Author-X-Name-First: Konstantinos Dimitrios
Author-X-Name-Last: Drakos
Author-Name: Eleftherios Goulas
Author-X-Name-First: Eleftherios
Author-X-Name-Last: Goulas
Title: Investment in Greek manufacturing under irreversibility and uncertainty: the message in used capital expenditures
Abstract:
This article contributes to the existing literature by showing that
uncertainty produces a nonuniform impact to the extent that different
types of capital goods exhibit heterogeneous irreversibility, which we
define as asset-specific irreversibility. Hence, asset-specific
irreversibility is responsible for asymmetries in responses across types
of capital goods to uncertainty. We also show that for a given type of
capital good, uncertainty produces a variety of responses across sectors,
which we define sector-specific irreversibility. In other words, sectoral
differences in terms of the ability to substitute a given type of capital
with labour, introduce a second-order effect of uncertainty on investment.
Journal: Applied Economics
Pages: 1797-1809
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736040
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736040
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1797-1809
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Tse-Shih Wang
Author-X-Name-First: Alan Tse-Shih
Author-X-Name-Last: Wang
Author-Name: Ming-Yuan Leon Li
Author-X-Name-First: Ming-Yuan Leon
Author-X-Name-Last: Li
Author-Name: Ti-Chen Chen
Author-X-Name-First: Ti-Chen
Author-X-Name-Last: Chen
Title: Price transmission, foreign exchange rate risks and global diversification of ADRs
Abstract:
The purposes of this article are to reinvestigate how returns of major
American depository receipts (ADRs) from different countries are related
to the underlying stock returns and to identify the determinants of ADR
risk premiums. We use different types of error-correcting terms in vector
error correction models to examine information flows between ADRs and the
underlying foreign stocks. General method of moments estimation of
conditional international asset pricing model of Dumas and Solnik (1995)
is applied to investigate ADR return premiums. We find that stock returns
are more affected by disequilibrium between ADR and stock prices in an
inefficient way. For US investors, foreign exchange rate risk premiums and
world market risk premium (beyond US index) are priced in ADRs returns ex
ante. Surprisingly, it is shown that the exchange rate of New Taiwan
dollar and the interest rates of Brazil and Taiwan play important roles in
determining ADR risk premiums across countries.
Journal: Applied Economics
Pages: 1811-1823
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736057
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736057
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1811-1823
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Ki Min
Author-X-Name-First: Chung-Ki
Author-X-Name-Last: Min
Title: Estimation of SEs for heteroscedastic and cross-sectionally correlated data
Abstract:
This study develops SE estimators for heteroscedastic and
cross-sectionally correlated data. The new estimators are a
cross-sectional version of the White and Domowitz (1984) and Newey and
West (1987) estimators, and therefore, consistent in the presence of
heteroscedasticity and cross correlation of unknown form. Unlike the
estimators in the literature, these estimators can control for cross
correlation even for single-period cross-sectional data.
Journal: Applied Economics
Pages: 1825-1832
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736172
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736172
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1825-1832
Template-Type: ReDIF-Article 1.0
Author-Name: Jay Squalli
Author-X-Name-First: Jay
Author-X-Name-Last: Squalli
Author-Name: Kenneth Wilson
Author-X-Name-First: Kenneth
Author-X-Name-Last: Wilson
Author-Name: Sarah Hugo
Author-X-Name-First: Sarah
Author-X-Name-Last: Hugo
Title: An analysis of market access
Abstract:
Market access matters. This article creates, for the first time, a
quantitative measure of market access, the Market Access Index, which
enables the creation of a rank order, or league table, of market access
for a large sample of world economies. The article uses Structural
Equation Modelling and a data set from the World Economic Forum and
provides a broader framework for the analysis of market access arguing
that market access is driven by the regulatory environment, public
institutions and network industries. The article finds that network
industries are the most important contributors to market access, followed
by public institutions. The regulatory environment, covering trade policy
is the least important contributor. These findings have important
implications for the role of trade policy in influencing greater market
access.
Journal: Applied Economics
Pages: 1833-1844
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736198
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736198
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1833-1844
Template-Type: ReDIF-Article 1.0
Author-Name: Roger White
Author-X-Name-First: Roger
Author-X-Name-Last: White
Title: Long-run wage and earnings losses of displaced workers
Abstract:
Displacement-related losses are estimated using National Longitudinal
Survey of Youth data that span the years 1979-2000. The typical displaced
worker faces losses of $34 065 during the period 4 years prior through 5
years following displacement. Proportionally, this represents a 10.8% loss
compared to earnings of similar nondisplaced workers over the period.
Considerable variation in losses is reported across worker types. Union,
male and more mature workers suffer greater losses, respectively, than do
their nonunion, female and younger counterparts. College graduates and
high school dropouts are found to suffer lower losses compared to high
school diploma holders and those who completed some college.
Journal: Applied Economics
Pages: 1845-1856
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736206
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736206
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1845-1856
Template-Type: ReDIF-Article 1.0
Author-Name: Atsushi Fukumi
Author-X-Name-First: Atsushi
Author-X-Name-Last: Fukumi
Author-Name: Shoji Nishijima
Author-X-Name-First: Shoji
Author-X-Name-Last: Nishijima
Title: Institutional quality and foreign direct investment in Latin America and the Caribbean
Abstract:
The purpose of this article is to investigate the interaction between
Foreign Direct Investment (FDI) and institutional quality through a panel
analysis of 19 countries in Latin America and the Caribbean. We employed a
simultaneous equation approach to avoid endogeneity biases and found that
FDI could improve the quality of institutions, while better institutions
attract more FDI into the region. As a policy implication, our regression
results indicate that during the process of reform, the relation between
FDI and institutional quality warrants a certain amount of attention.
Journal: Applied Economics
Pages: 1857-1864
Issue: 14
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701748979
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701748979
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Handle: RePEc:taf:applec:v:42:y:2010:i:14:p:1857-1864
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Furceri
Author-X-Name-First: Davide
Author-X-Name-Last: Furceri
Title: Long-run growth and volatility: which source really matters?
Abstract:
The aim of the article is to analyse the relationship between long-run
growth and business cycle volatility. In particular, the main purpose of
this article is to identify which source of volatility is most detrimental
to growth. Using cross-country data from 1970 to 2000, and several
indicators of volatility (such as inflation, exchange rate, government
expenditure, output and investment volatility) this article shows that
although, all these measures of volatility are remarkably harmful for
growth, business cycle investment volatility is the main source that
hampers long-run growth. This relation is robust to different measures of
business cycle, and to different sub-samples of countries.
Journal: Applied Economics
Pages: 1865-1874
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701749050
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749050
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1865-1874
Template-Type: ReDIF-Article 1.0
Author-Name: Volodymyr Bilotkach
Author-X-Name-First: Volodymyr
Author-X-Name-Last: Bilotkach
Title: Quality coordination and complementary products
Abstract:
This article models the choice of price and quality, where products are
complementary; and components can be provided by either one or two
monopolists. The firms have to choose price and quality simultaneously,
but can coordinate in the latter dimension. We consider two specifications
for the quality of the composite good: 'bottleneck' and additive set-ups.
In both cases, a single monopolist may produce lower quality as compared
to dual ownership, if the latter is modelled as a single-stage
quality-and-price setting game. When separate markets for components of
the composite good are added to the model, we provide an example where
dual ownership leading to higher quality also yields higher consumer
surplus (but not total welfare) than a single monopolist.
Journal: Applied Economics
Pages: 1875-1888
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701749043
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749043
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1875-1888
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Whitacre
Author-X-Name-First: Brian
Author-X-Name-Last: Whitacre
Author-Name: Bradford Mills
Author-X-Name-First: Bradford
Author-X-Name-Last: Mills
Title: A need for speed? Rural Internet connectivity and the no access/dial-up/high-speed decision
Abstract:
As residential high-speed Internet access has become more prevalent, the
nature of the rural-urban digital divide in access has shifted. In 2000,
dial-up access rates in rural households lagged behind their urban
counterparts by 11 percentage points. By 2003, however, dial-up access
rates were equal in rural and urban areas, but high-speed access rates
were 14 percentage points higher in urban areas. This article uses a
nested logit model to explore the household decision between no Internet
access, dial-up access and high-speed access. A decomposition technique is
then used to estimate the contributions of various factors, including
education, income and infrastructure levels, to differences in Internet
access among rural and urban households. The results suggest that policies
which solely promote infrastructure in rural areas fail to address the
dominant factors in the emerging high-speed digital divide.
Journal: Applied Economics
Pages: 1889-1905
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701749001
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749001
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1889-1905
Template-Type: ReDIF-Article 1.0
Author-Name: Sovannroeun Samreth
Author-X-Name-First: Sovannroeun
Author-X-Name-Last: Samreth
Title: Currency substitution and seigniorage-maximizing inflation: the case of Cambodia
Abstract:
This article contributes a new empirical study on currency substitution
in Cambodia. In our analysis, a model of money-in-the-utility function is
adopted. The empirical results indicate that the elasticity of
substitution between foreign and domestic real currency balances in
Cambodia is high. Moreover, the high share of foreign real balances in
providing domestic liquidity services in Cambodia is also confirmed by
empirical analysis. Given these findings, the effects of the currency
substitution on the government ability to gain from seigniorage revenue
are also examined. The analysis from simulated results shows that the
Cambodian government has little opportunity to gain from seigniorage
revenue.
Journal: Applied Economics
Pages: 1907-1916
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701749035
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749035
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1907-1916
Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim
Author-X-Name-First: Sangho
Author-X-Name-Last: Kim
Author-Name: Rainer Klump
Author-X-Name-First: Rainer
Author-X-Name-Last: Klump
Title: The effects of public pensions on private wealth: evidence on the German savings puzzle
Abstract:
Based on German panel data between 1984 and 1999, we test for the
interaction of social security benefits and private wealth formation. In a
simple life-cylce model benefits from public pension systems should
displace equal amounts of private retirement accumulation. Our estimate
for the offset effect, corrected for several possible measurement biases,
is much lower, however, than expected from pure life-cycle considerations
and less than comparable estimates for the US and the UK. This result thus
supports other evidence on a particular German savings puzzle, which might
be due to market imperfections and/or bounded rational behaviour.
Journal: Applied Economics
Pages: 1917-1926
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701749027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749027
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1917-1926
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolin Xing
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Xing
Title: Can price dispersion be persistent in the Internet markets?
Abstract:
We investigate pricing behaviour and market dynamics for both online
branches of Multi-Channel Retailers (MCRs) and online-only retailers
(Dotcoms), based on a set of panel data collected for 2 years in the
online DVD market. We find that prices of MCRs and Dotcoms both go down
with time, but prices of MCRs decrease in a significantly faster speed,
implying that difference in the average prices between the two types of
retailers is getting smaller with time. We also compare the price
dispersion and its dynamics between MCRs and Dotcoms. We find that the
price dispersion among MCRs is much bigger than that among Dotcoms at the
beginning. But such a difference gets smaller with time as the price
dispersion among Dotcoms becomes bigger. Our results suggest that the two
types of retailers will not only charge similar average prices in long
term, but also have similar price dispersions. But our findings show that
price dispersion among all retailers goes up with time, indicating that
prices do not converge in the Internet market. Branding makes significant
difference on both the price and the price dispersion.
Journal: Applied Economics
Pages: 1927-1940
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701748987
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701748987
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1927-1940
Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Czarnitzki
Author-X-Name-First: Dirk
Author-X-Name-Last: Czarnitzki
Author-Name: Kornelius Kraft
Author-X-Name-First: Kornelius
Author-X-Name-Last: Kraft
Title: On the profitability of innovative assets
Abstract:
Successful innovative activity is a major contribution to the intangible
capital of firms. Although its importance is generally acknowledged, the
contribution to companies' profits is a priori unclear. We present the
results of an empirical study on the effects of the patent stock on
profitability. The database is a representative sample of German
manufacturing firms and we use a number of control variables including
measures of competition and firm governance. It turns out that the patent
stock has a strong and robust effect on profitability.
Journal: Applied Economics
Pages: 1941-1953
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701749019
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749019
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1941-1953
Template-Type: ReDIF-Article 1.0
Author-Name: Axel Dreher
Author-X-Name-First: Axel
Author-X-Name-Last: Dreher
Author-Name: Tim Krieger
Author-X-Name-First: Tim
Author-X-Name-Last: Krieger
Title: Diesel price convergence and mineral oil taxation in Europe
Abstract:
We empirically analyse convergence of European producer and consumer
prices for diesel fuel and investigate the role of excise taxation. By
comparing the speed of convergence of prices and taxes we find a
surprisingly fast speed of convergence for consumer prices. While this can
in part be explained by fuel tourism, the main driving force is producer
price dynamics. Tax convergence contributes weakly to price convergence,
but the overall effect is to slow down consumer relative to producer price
convergence.
Journal: Applied Economics
Pages: 1955-1961
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701749076
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749076
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1955-1961
Template-Type: ReDIF-Article 1.0
Author-Name: Rumi Masih
Author-X-Name-First: Rumi
Author-X-Name-Last: Masih
Author-Name: A. Mansur M. Masih
Author-X-Name-First: A. Mansur M.
Author-X-Name-Last: Masih
Author-Name: Kilian Mie
Author-X-Name-First: Kilian
Author-X-Name-Last: Mie
Title: Model uncertainty and asset return predictability: an application of Bayesian model averaging
Abstract:
We investigate model uncertainty associated with predictive regressions
employed in asset return forecasting research. We use simple combination
and Bayesian model averaging (BMA) techniques to compare the performance
of these forecasting approaches in short-vs. long-run horizons of S&P500
monthly excess returns. Simple averaging involves an equally-weighted
averaging of the forecasts from alternative combinations of factors used
in the predictive regressions, whereas BMA involves computing the
predictive probability that each model is the true model and uses these
predictive probabilities as weights in combing the forecasts from
different models. From a given set of multiple factors, we evaluate all
possible pricing models to the extent, which they describe the data as
dictated by the posterior model probabilities. We find that, while simple
averaging compares quite favorably to forecasts derived from a random walk
model with drift (using a 10-year out-of-sample iterative period), BMA
outperforms simple averaging in longer compared to shorter forecast
horizons. Moreover, we find further evidence of the latter when the
predictive Bayesian model includes shorter, rather than longer lags of the
predictive factors. An interesting outcome of this study tends to
illustrate the power of BMA in suppressing model uncertainty through model
as well as parameter shrinkage, especially when applied to longer
predictive horizons.
Journal: Applied Economics
Pages: 1963-1972
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701736214
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701736214
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1963-1972
Template-Type: ReDIF-Article 1.0
Author-Name: Kam Yu
Author-X-Name-First: Kam
Author-X-Name-Last: Yu
Author-Name: Marc Prud'homme
Author-X-Name-First: Marc
Author-X-Name-Last: Prud'homme
Title: Econometric issues in hedonic price indices: the case of internet service providers
Abstract:
Researchers in hedonic studies frequently encounter the problems of the
choice of functional forms, the use of pooled regression using time
dummies vs period to period regression, and the unit of measurement of the
product. This article examines these issues through the study of Internet
service providers in Canada from 1993 to 2000. A series of tests are
employed to evaluate the best procedure. We find that the commonly used
log-linear equation with period to period regression and hourly rate
charged gives a robust result compared with the more flexible translog
function. The quality-adjusted price index declines at about 15% per year.
Journal: Applied Economics
Pages: 1973-1994
Issue: 15
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701748995
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701748995
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Handle: RePEc:taf:applec:v:42:y:2010:i:15:p:1973-1994
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Gerry
Author-X-Name-First: Christopher
Author-X-Name-Last: Gerry
Author-Name: Carmen Li
Author-X-Name-First: Carmen
Author-X-Name-Last: Li
Title: Consumption smoothing and vulnerability in Russia
Abstract:
Applying bootstrapped quantile regression to the Russian Longitudinal
Monitoring Survey (RLMS) data, we examine the channels through which
individuals experience and seek to cope with changes in consumption. We
find that married individuals living in small households, with educated
heads in urban areas are better equipped to smooth consumption.
Investigating the impact of idiosyncratic shocks, we find that the labour
market is an important transmission mechanism allowing households to
smooth their consumption but also exposing them to risk, mainly through
job loss. Outside of pension payments, the formal social safety net does
not facilitate consumption smoothing, thus heightening the importance of
informal coping institutions. It transpires that both support from
relatives/friends and home production act as important insurance
mechanisms for the most vulnerable. In contrast with previous findings, it
would seem that regardless of its historical, political and social roots,
the garden plots and dachas, often romanticized in Russian literature, do
provide a means by which 'urban' Russians are able to cope with economic
fluctuations. We finish by stressing the important policy lessons for
Russia's developing market economy.
Journal: Applied Economics
Pages: 1995-2007
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765403
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765403
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:1995-2007
Template-Type: ReDIF-Article 1.0
Author-Name: Yasser Abdih
Author-X-Name-First: Yasser
Author-X-Name-Last: Abdih
Author-Name: Charalambos Tsangarides
Author-X-Name-First: Charalambos
Author-X-Name-Last: Tsangarides
Title: FEER for the CFA franc
Abstract:
We investigate the behaviour of the real effective exchange rates (REER)
of the two CFA franc zone monetary unions - CEMAC and WAEMU - vis-a-vis
their long-run equilibrium paths. A reduced form of the Edwards' (1989)
fundamentals equilibrium exchange rate (FEER) model is estimated using the
Johansen's (1995) cointegration methodology, and equilibrium paths and
associated misalignments are derived for the period 1970 to 2005. Our
results suggest that, for both CEMAC and WAEMU, the fundamentals account
for most of the exchange rates' fluctuation: increases in the
terms-of-trade, government consumption and productivity tend to appreciate
the exchange rate, while increases in investment and openness tend to
depreciate it. At end of 2005, we find no evidence that either the CEMAC
or WAEMU REERs were significantly over-valued, which suggests that no
exchange rate action is currently needed. Our analysis also reveals
significant differences in the fundamentals' marginal impact, and speed of
reversion to equilibrium following a shock, which may raise questions
about the desirability of maintaining the same parity for both monetary
unions.
Journal: Applied Economics
Pages: 2009-2029
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765411
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765411
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2009-2029
Template-Type: ReDIF-Article 1.0
Author-Name: Seong-Hoon Cho
Author-X-Name-First: Seong-Hoon
Author-X-Name-Last: Cho
Author-Name: Zhuo Chen
Author-X-Name-First: Zhuo
Author-X-Name-Last: Chen
Author-Name: Neelam Poudyal
Author-X-Name-First: Neelam
Author-X-Name-Last: Poudyal
Title: Spatial structure of agricultural production in China
Abstract:
The spatial structure of county-level agricultural production in China in
1999 is analysed. A convenient simple method that corrects for both
spatial autocorrelation and spatial heterogeneity in the input-output
relationships using spatial lag models and an allowance for the response
coefficients to vary across relatively homogeneous regions are described.
Empirical results suggest an abundant labour supply and extensive use of
agricultural machinery reflected in its declining price. Although
mechanization is relatively new, machines have replaced fertilizer in
agricultural production in the North, Northeast, Northwest and East
regions while irrigation and fertilizer are the significantly important
inputs in the Central and Southwest regions.
Journal: Applied Economics
Pages: 2031-2040
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765320
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765320
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2031-2040
Template-Type: ReDIF-Article 1.0
Author-Name: Song Zan Chiou-Wei
Author-X-Name-First: Song Zan
Author-X-Name-Last: Chiou-Wei
Author-Name: Zhen Zhu
Author-X-Name-First: Zhen
Author-X-Name-Last: Zhu
Author-Name: Wun-Cheng Wu
Author-X-Name-First: Wun-Cheng
Author-X-Name-Last: Wu
Title: Financial development and economic growth in South Korea: an application of smooth transition error correction analysis
Abstract:
This article investigates the influences of financial development on
economic growth for South Korea. The analysis is performed using an error
correction model and a nonlinear smooth transition error correction
technique. Empirical results from the cointegration test reveal that there
is a long-run equilibrium relationship among financial development and
economic growth. We also demonstrate that the nonlinear specification is
more appropriate than the linear model and confirm the presence of
nonlinearity in the aggregate output. Furthermore, we find that the
short-run effect of financial development on economic growth is unstable
despite the positive long-term effect.
Journal: Applied Economics
Pages: 2041-2052
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765312
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765312
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2041-2052
Template-Type: ReDIF-Article 1.0
Author-Name: Mareva Sabatier
Author-X-Name-First: Mareva
Author-X-Name-Last: Sabatier
Title: Do female researchers face a glass ceiling in France? A hazard model of promotions
Abstract:
The present article examines whether French female researchers face a
glass ceiling, an invisible barrier to promotion. Using an original
database from the National Institute for Agricultural Research (INRA), we
estimate duration models for promotions. The methodology used allows us to
take into account censored observations and unobserved heterogeneity. Our
results show a significant gender effect that does not contradict the
glass-ceiling hypothesis. In addition, factors that boost promotion seem
to be radically different according to gender and we present evidence that
promotion strategies are different for males and females.
Journal: Applied Economics
Pages: 2053-2062
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765338
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765338
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2053-2062
Template-Type: ReDIF-Article 1.0
Author-Name: Gerhard Kempkes
Author-X-Name-First: Gerhard
Author-X-Name-Last: Kempkes
Author-Name: Carsten Pohl
Author-X-Name-First: Carsten
Author-X-Name-Last: Pohl
Title: The efficiency of German universities-some evidence from nonparametric and parametric methods
Abstract:
Due to tight public budget constraints, the efficiency of publicly
financed universities in Germany is receiving increasing attention in the
academic as well as in the public discourse. Against this background, we
analyse the efficiency of 72 public German universities for the years
1998-2003, applying data envelopment and stochastic frontier analysis.
Contrary to earlier studies, we account for the faculty composition of
universities which proves to be an essential element in the efficiency of
higher education. Our main finding is that East German universities have
performed better in total factor productivity change compared to those in
West Germany. However, when looking at mean efficiency scores over the
sample period, West German universities still appear at the top end of
relative efficiency outcomes.
Journal: Applied Economics
Pages: 2063-2079
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765361
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2063-2079
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Sosvilla-Rivero
Author-X-Name-First: Simon
Author-X-Name-Last: Sosvilla-Rivero
Author-Name: Pedro Rodriguez
Author-X-Name-First: Pedro
Author-X-Name-Last: Rodriguez
Title: Linkages in international stock markets: evidence from a classification procedure
Abstract:
In this article, we propose a new approach to evaluate the predictable
components in stock indices using a boosting-based classification
technique, and we use this method to examine causality among the three
main stock market indices in the world during periods of large positive
and negative price changes. The empirical evidence seems to indicate that
the Standard & Poors 500 index contains incremental information that is
not present in either the FTSE 100 index (Financial Times Stock Exchange
Index) or the Nikkei 225 index, and that could be used to enhance the
predictability of the large positive and negative returns in the three
main stock market indices in the world. This in turn would suggest a
causality relationship running from the Standard & Poors 500 index to both
the FTSE 100 and the Nikkei 225 indices.
Journal: Applied Economics
Pages: 2081-2089
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765387
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765387
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2081-2089
Template-Type: ReDIF-Article 1.0
Author-Name: Corrado Andini
Author-X-Name-First: Corrado
Author-X-Name-Last: Andini
Title: A dynamic Mincer equation with an application to Portuguese data
Abstract:
This article argues in favour of a dynamic specification of the Mincer
equation, where the past observed earnings play the role of additional
explanatory variable for current observed earnings. A dynamic approach
offers an explanation why the return to schooling in terms of observed
earnings is not independent of labour-market experience, as suggested by
some recent empirical evidence for the United States.
Journal: Applied Economics
Pages: 2091-2098
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765429
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765429
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2091-2098
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Rukmini Gounder
Author-X-Name-First: Rukmini
Author-X-Name-Last: Gounder
Author-Name: Josef Loening
Author-X-Name-First: Josef
Author-X-Name-Last: Loening
Title: The level and growth effects in the empirics of economic growth: some results with data from Guatemala
Abstract:
Mankiw et al. (1992) have extended the Solow (1956) model by augmenting
the production function with human capital. Its empirical success is
impressive and it showed a procedure to improve the explanatory power of
the neoclassical growth model. This article suggests an empirical
procedure to further extend the neoclassical growth model to distinguish
between the growth and level effects of shift variables like the human
capital. We use time-series data from Guatemala to show that while the
growth effects of education are small, they are significant and dominate
the level effects.
Journal: Applied Economics
Pages: 2099-2109
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701749068
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701749068
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2099-2109
Template-Type: ReDIF-Article 1.0
Author-Name: Hsinan Hsu
Author-X-Name-First: Hsinan
Author-X-Name-Last: Hsu
Author-Name: Hsing-Chi Wu
Author-X-Name-First: Hsing-Chi
Author-X-Name-Last: Wu
Author-Name: Hsien-Yi Lee
Author-X-Name-First: Hsien-Yi
Author-X-Name-Last: Lee
Author-Name: Janchung Wang
Author-X-Name-First: Janchung
Author-X-Name-Last: Wang
Title: A measurement of the extent of market imperfections between markets and applications
Abstract:
Traditionally, market imperfections are measured separately. In dealing
with the impacts of market imperfections on a financial theory, financial
researchers often modify the theory by incorporating one type of market
imperfections into the theory, one by one, and then derive a new modified
formula. The major problem with this approach is that when considering a
type of market imperfections, the new modified formula still ignores the
effects of other types of market imperfections. Another problem is that
the modified formula is often tedious. Following the concept of degree of
market imperfection in Hsu and Wang (2004), this article aims to derive a
more easy measurement of market imperfections between markets, discuss
some useful applications and provide one of empirical tests. The degree of
market imperfection between markets can be applied at least to the
following areas: (1) theoretical model building for pricing derivatives in
imperfect markets, (2) predicting the deviations of the actual derivative
prices from their theoretical prices based on the model of perfect market
assumptions and (3) showing the extent of arbitrage activities between
markets.
Journal: Applied Economics
Pages: 2111-2126
Issue: 16
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765353
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Handle: RePEc:taf:applec:v:42:y:2010:i:16:p:2111-2126
Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Title: The asymmetric effects of demand shocks: international evidence on determinants and implications
Abstract:
The analysis focuses on the asymmetric effects of demand shocks. The
evidence across a sample of 19 industrial countries differentiates the
effects of expansionary and contractionary aggregate demand shocks on real
output growth and nominal wage and price inflation. The difference appears
consistent with a kinked supply curve that is dependent on the asymmetric
flexibility of wages and/or prices across countries. Furthermore, the
evidence does not support the endogeneity of asymmetric nominal
flexibility with respect to demand variability or trend price inflation
across countries. On average, across countries, demand variability
increases nominal wage and price inflation relative to deflation, while
exacerbating output contraction relative to expansion. The apparent
trade-off between changes in real and nominal trends provides further
support to the supply side explanation of asymmetry.
Journal: Applied Economics
Pages: 2127-2145
Issue: 17
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765502
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765502
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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2127-2145
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Afonso
Author-X-Name-First: Antonio
Author-X-Name-Last: Afonso
Author-Name: Ludger Schuknecht
Author-X-Name-First: Ludger
Author-X-Name-Last: Schuknecht
Author-Name: Vito Tanzi
Author-X-Name-First: Vito
Author-X-Name-Last: Tanzi
Title: Public sector efficiency: evidence for new EU member states and emerging markets
Abstract:
In this article, we analyse public sector efficiency in the new member
states of the EU compared to that in emerging markets. After a conceptual
discussion of expenditure efficiency measurement, we compute efficiency
scores and rankings by applying a range of measurement techniques. The
study finds that expenditure efficiency across new EU member states is
rather diverse especially as compared to the group of top performing
emerging markets in Asia. Econometric analysis shows that higher income,
civil service competence and education levels as well as the security of
property rights seem to facilitate the prevention of inefficiencies in the
public sector.
Journal: Applied Economics
Pages: 2147-2164
Issue: 17
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765460
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765460
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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2147-2164
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Boeters
Author-X-Name-First: Stefan
Author-X-Name-Last: Boeters
Author-Name: Christoph Bohringer
Author-X-Name-First: Christoph
Author-X-Name-Last: Bohringer
Author-Name: Thiess Buttner
Author-X-Name-First: Thiess
Author-X-Name-Last: Buttner
Author-Name: Margit Kraus
Author-X-Name-First: Margit
Author-X-Name-Last: Kraus
Title: Economic effects of VAT reforms in Germany
Abstract:
In the tax policy debate, differentiation of value-added taxes (VAT) is
often justified by distributional concerns. Our quantitative analysis for
Germany indicates that such concerns are misplaced. We find that the
abolition of VAT differentiation has only negligible redistributive
effects. Instead, reduced VAT rates are found to act as industry-specific
subsidies. Whereas the overall welfare effects of pure VAT reforms are
very small, a revenue-neutral introduction of a harmonized VAT combined
with reductions in the marginal income tax rates or social security
contributions turns out to yield substantial welfare gains for all
households.
Journal: Applied Economics
Pages: 2165-2182
Issue: 17
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701857952
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857952
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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2165-2182
Template-Type: ReDIF-Article 1.0
Author-Name: Peter van der Zwan
Author-X-Name-First: Peter
Author-X-Name-Last: van der Zwan
Author-Name: Roy Thurik
Author-X-Name-First: Roy
Author-X-Name-Last: Thurik
Author-Name: Isabel Grilo
Author-X-Name-First: Isabel
Author-X-Name-Last: Grilo
Title: The entrepreneurial ladder and its determinants
Abstract:
We test a new model where the entrepreneurial decision is described as a
process of successive engagement levels, i.e. as an entrepreneurial
ladder. Five levels are distinguished using nearly 12 000 observations
from the 2004 'Flash Eurobarometer survey on Entrepreneurship' covering
the 25 European Union member states and the United States. The most
surprising of the many results is that perception of lack of financial
support is no obstacle for moving to a higher entrepreneurial engagement
level whereas perceived administrative complexity is a significant
obstacle. We also show that the effect of age on the probability of moving
forward in the entrepreneurial process becomes negative after a certain
age implying that if entrepreneurial engagements are not taken early
enough in life they may well never be taken.
Journal: Applied Economics
Pages: 2183-2191
Issue: 17
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765437
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765437
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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2183-2191
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Title: Deterministic and stochastic trends in the time series models: a guide for the applied economist
Abstract:
Applied economists working with time series data face a dilemma in
selecting between models with deterministic and stochastic trends. While
models with deterministic trends are widely used, models with stochastic
trends are not so well known. In an influential paper Harvey (1997)
strongly advocates a structural time series approach with stochastic
trends in place of the widely used autoregressive models based on unit
root tests and cointegration techniques. Therefore, it is important to
understand their relative merits. This article suggests that both
methodologies are useful and they may perform differently in different
models. This article provides a few guidelines to the applied economists
to understand these alternative methods.
Journal: Applied Economics
Pages: 2193-2202
Issue: 17
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765494
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765494
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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2193-2202
Template-Type: ReDIF-Article 1.0
Author-Name: Maria De Paola
Author-X-Name-First: Maria
Author-X-Name-Last: De Paola
Author-Name: Vincenzo Scoppa
Author-X-Name-First: Vincenzo
Author-X-Name-Last: Scoppa
Title: Peer group effects on the academic performance of Italian students
Abstract:
We analyse peer effects among students of a middle-sized Italian public
university. We explain students' average grade in exams passed during
their Second Level Degree course on the basis of their pre-determined
measures of abilities, personal characteristics and peer group abilities.
Thanks to a rich administrative data set, we are able to build a variety
of definitions of peer groups, describing different kinds of students'
interaction, based on classes attended together or exams taken in the same
session. Self-selection problems are handled through Two-Stage Least
Squares estimations using as an instrument, the exogenous assignment of
students to different teaching classes in the compulsory courses attended
during their First Level Degree course. We find statistically significant
positive peer group effects, which are robust to the different definitions
of peer group and to different measures of abilities.
Journal: Applied Economics
Pages: 2203-2215
Issue: 17
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765478
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765478
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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2203-2215
Template-Type: ReDIF-Article 1.0
Author-Name: Taewoo You
Author-X-Name-First: Taewoo
Author-X-Name-Last: You
Author-Name: Xiaoying Chen
Author-X-Name-First: Xiaoying
Author-X-Name-Last: Chen
Author-Name: Mark Holder
Author-X-Name-First: Mark
Author-X-Name-Last: Holder
Title: Efficiency and its determinants in pharmaceutical industries: ownership, R&D and scale economy
Abstract:
The purpose of this article is to measure the efficiency of
pharmaceutical firms and identify their determinants using Korean and
American samples from 1992 to 2004. We document some stylized facts in the
patterns and sources of efficiency change in Korean and American
pharmaceutical firms. The evidence shows that ownership structure can
substantially influence the efficiency of pharmaceutical firms.
Especially, institutional ownership rate affects corporate efficiencies
negatively, corroborating the myopic institutional investor hypothesis.
The hypothesis is supported by both Korean and American samples. However,
we find evidence that foreign ownership in Korea promotes efficiency of
pharmaceutical firms. It is shown that R&D intensity is positively related
to contemporaneous largest ownership rate and prior foreign ownership rate
in Korean pharmaceutical firms. In contrast, little evidence is found on
the relationship between ownership structure and R&D intensity in the
American pharmaceutical industry. These empirical results are robust even
after we check the causal links among efficiency, R&D and ownership.
Journal: Applied Economics
Pages: 2217-2241
Issue: 17
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765445
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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2217-2241
Template-Type: ReDIF-Article 1.0
Author-Name: Julian Ramajo
Author-X-Name-First: Julian
Author-X-Name-Last: Ramajo
Author-Name: Montserrat Ferre
Author-X-Name-First: Montserrat
Author-X-Name-Last: Ferre
Title: Purchasing power parity revisited: evidence from old and new tests for an organisation for economic co-operation and development panel
Abstract:
The objective of this article is to study long-run Purchasing Power
Parity (PPP) for a panel of 21 Organisation for Economic Co-operation and
Development (OECD) countries from the end of the Bretton Woods era by
applying a wide range of the econometric techniques available. This will
allow us to present a comprehensive up to date examination of the
empirical validity of PPP, covering the weak and strong versions of the
hypothesis with individual and panel analysis, including the absence or
presence of cross-dependency, the linear or nonlinear behaviour of the
real exchange rates and the degree of persistence. Overall, the results
provide evidence in favour of PPP.
Journal: Applied Economics
Pages: 2243-2260
Issue: 17
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701765486
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701765486
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Handle: RePEc:taf:applec:v:42:y:2010:i:17:p:2243-2260
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Russo
Author-X-Name-First: Benjamin
Author-X-Name-Last: Russo
Title: Is past prologue? Prospects for state and local sales tax bases
Abstract:
General sales taxes provide substantial fractions of state and local
revenues in the US. However, state and local sales tax bases have been
eroding steadily during the past 50 years. Base erosion contributes to
fiscal stress in the states; therefore, prospects for continued sales tax
base erosion are important to state tax administrators, policymakers and
public finance economists. This article offers a quantitative assessment
of base erosion. We construct time series of a representative state sales
tax base and its price index, and estimate a structural demand system for
'taxed' and 'untaxed' commodities. We use the estimates to forecast the
sales tax base over coming years. Time-series forecasts and a
weighted-average forecast are constructed, to reduce the likelihood of
forecast error. The results suggest slow, but relentless, base erosion and
possible recurring fiscal stress, in states where sales tax revenues make
up sizable fractions of total tax revenues.
Journal: Applied Economics
Pages: 2261-2274
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858000
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858000
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2261-2274
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Musolesi
Author-X-Name-First: Antonio
Author-X-Name-Last: Musolesi
Author-Name: Massimiliano Mazzanti
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Mazzanti
Author-Name: Roberto Zoboli
Author-X-Name-First: Roberto
Author-X-Name-Last: Zoboli
Title: A panel data heterogeneous Bayesian estimation of environmental Kuznets curves for CO2 emissions
Abstract:
This article investigates the Environmental Kuznets Curves (EKC) for CO2
emissions in a panel of 109 countries during the period 1959 to 2001. The
length of the series makes the application of a heterogeneous estimator
suitable from an econometric point of view. The results, based on the
hierarchical Bayes estimator, show that different EKC dynamics are
associated with the different sub-samples of countries considered. On
average, more industrialized countries show evidence of EKC in quadratic
specifications, which nevertheless are probably evolving into an N-shape
based on their cubic specification. Nevertheless, it is worth noting that
the EU, and not the Umbrella Group led by US, has been driving currently
observed EKC-like shapes. The latter is associated to monotonic income-CO2
dynamics. The EU shows a clear EKC shape. Evidence for less-developed
countries consistently shows that CO2 emissions rise positively with
income, though there are some signs of an EKC. Analyses of future
performance, nevertheless, favour quadratic specifications, thus
supporting EKC evidence for wealthier countries and non-EKC shapes for
industrializing regions.
Journal: Applied Economics
Pages: 2275-2287
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858034
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858034
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2275-2287
Template-Type: ReDIF-Article 1.0
Author-Name: Tara Sinclair
Author-X-Name-First: Tara
Author-X-Name-Last: Sinclair
Author-Name: H. O. Stekler
Author-X-Name-First: H. O.
Author-X-Name-Last: Stekler
Author-Name: L. Kitzinger
Author-X-Name-First: L.
Author-X-Name-Last: Kitzinger
Title: Directional forecasts of GDP and inflation: a joint evaluation with an application to Federal Reserve predictions
Abstract:
Many studies have undertaken separate analyses of the Fed's forecasts of
real Gross Domestic Product (GDP) growth and inflation. This article
presents a method for jointly evaluating the direction of change
predictions of these variables. We conclude that some of the inflation
forecasts, examined separately, were not valuable. However, the joint
pattern of GDP and inflation projections was generally in accord with the
economy's movements. '… directional forecasting … is now an
increasingly popular metric for forecasting performance….' (Pesaran
and Timmermann, 2004, 414)
Journal: Applied Economics
Pages: 2289-2297
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701857978
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857978
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2289-2297
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Karlson
Author-X-Name-First: Stephen
Author-X-Name-Last: Karlson
Author-Name: Eliakim Katz
Author-X-Name-First: Eliakim
Author-X-Name-Last: Katz
Title: Immigration amnesties
Abstract:
Barriers and border patrols complement amnesty in a coherent policy that
creates incentives for illegal immigrants to self-select on the basis of
ability in a way that benefits a rich host country. We consider the roles
of barriers to migration and immigration amnesties in greater depth and,
in particular, we examine the rich country's optimal policies. Encouraging
self-selection is optimal under some, but not all, circumstances, because
there are mixes of potential immigrants for which the cost of welfare
migration is more than offset by the gains from productive workers enticed
by a more lenient immigration policy. Furthermore, under plausible
assumptions, the rich country's optimum may require a probabilistic rather
than a certain amnesty to fine-tune the mix of migrants. Numerical
examples illustrate that probabilistic or certain amnesties, addressed to
different partitions of the migrant population, are each optimal as the
mix of potential migrants changes.
Journal: Applied Economics
Pages: 2299-2315
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701857986
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857986
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2299-2315
Template-Type: ReDIF-Article 1.0
Author-Name: Ashfaqul Babool
Author-X-Name-First: Ashfaqul
Author-X-Name-Last: Babool
Author-Name: Michael Reed
Author-X-Name-First: Michael
Author-X-Name-Last: Reed
Title: The impact of environmental policy on international competitiveness in manufacturing
Abstract:
The aim of this study is to test the hypothesis that environmental
stringency adversely affects the international competitiveness (net
exports) in manufacturing sectors. The model follows the standard factor
endowment approach to explain the effects of environmental regulatory
policy on net exports in different product-based industries. An
econometric model is constructed, which includes factor endowments and
environmental regulations to examine how strict environmental policies
impact export competitiveness. A panel dataset of 10 Organisation for
Economic Co-operation and Development (OECD) countries, over 17 years,
1987-2003, was constructed for the modelling effort. The study finds that
environmental regulations can be a way to combat the flight of
manufacturing out of developed countries if the output from these
industries can be identified as environmentally friendly. A positive
relationship between net exports and environmental regulations was found
for paper products, wood products and textile products. However, most
manufacturing industries are harmed by increased environmental
regulations.
Journal: Applied Economics
Pages: 2317-2326
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858026
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2317-2326
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Bagliano
Author-X-Name-First: Fabio
Author-X-Name-Last: Bagliano
Author-Name: Claudio Morana
Author-X-Name-First: Claudio
Author-X-Name-Last: Morana
Title: Business cycle comovement in the G-7: common shocks or common transmission mechanisms?
Abstract:
What are the sources of macroeconomic comovement among G-7 countries? Two
main candidate explanations may be singled out: common shocks and common
transmission mechanisms. In the article it is shown that they are
complementary, rather than alternative, explanations. By means of a
large-scale Factor Vector Autoregressive (FVAR) model, allowing for full
economic and statistical identification of all global and idiosyncratic
shocks, it is found that both common disturbances and common transmission
mechanisms of global and country-specific shocks account for business
cycle comovement in the G-7 countries. Moreover, spillover effects of
foreign idiosyncratic disturbances seem to be a less important factor than
the common transmission of global or domestic shocks in the determination
of international macro-economic comovements.
Journal: Applied Economics
Pages: 2327-2345
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858067
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858067
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2327-2345
Template-Type: ReDIF-Article 1.0
Author-Name: Myung-Hee Kim
Author-X-Name-First: Myung-Hee
Author-X-Name-Last: Kim
Author-Name: Hyun-Hoon Lee
Author-X-Name-First: Hyun-Hoon
Author-X-Name-Last: Lee
Title: Linguistic and nonlinguistic factors determining proficiency of English as a foreign language: a cross-country analysis
Abstract:
This article is one of the first studies to use econometric techniques to
examine the factors influencing proficiency of English as a foreign
language. Specifically, this article aims to investigate, at cross-country
level, the linguistic and nonlinguistic factors influencing the variation
of proficiency in the use of English as a second language. As a proxy for
English proficiency, we use the average Test of English as a Foreign
Language (TOEFL) scores achieved by residents of a total of over 60
countries. The regression results suggest that linguistic factors such as
historical affinity and similarity in word order between English and a
given language have an influence on the proficiency in English achieved by
people whose native language is not English. Among the nonlinguistic
factors, expected years of schooling and degree of globalization have a
positive relation with proficiency in English. These results seem robust,
even when the computer-based TOEFL score is used in place of the
paper-based TOEFL score and even when the overall score is replaced by the
respective score in listening comprehension, structure and written
expression, and reading comprehension.
Journal: Applied Economics
Pages: 2347-2364
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701857960
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701857960
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2347-2364
Template-Type: ReDIF-Article 1.0
Author-Name: M. Ege Yazgan
Author-X-Name-First: M. Ege
Author-X-Name-Last: Yazgan
Author-Name: Ilknur Zer-Toker
Author-X-Name-First: Ilknur
Author-X-Name-Last: Zer-Toker
Title: Currency substitution, policy rule and pass-through: evidence from Turkey
Abstract:
In this article we analyse empirically currency substitution and exchange
rate pass-through in the Turkish Economy, where their ongoing presence
could undermine the implementation of a successful monetary policy,
especially in a flexible exchange rate regime. Even though a considerable
time has passed after the implementation of a flexible exchange rate
regime in Turkey, by using Vector Error Correction model for the period
from 1987 to 2004, we find that the currency substitution and exchange
rate pass-through still have importance in the Turkish Economy and the
monetary policy stance has been considerably strong, possibly, as a
response of ongoing presence of them. If this is the case, to avoid the
undesired consequences of this strong monetary policy, Turkey should
consider some policy measures to reduce the degree of pass-through and
currency substitution.
Journal: Applied Economics
Pages: 2365-2378
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858018
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2365-2378
Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui
Author-X-Name-First: Kenji
Author-X-Name-Last: Matsui
Title: Effects of wholesaler concentration on retailers by format: evidence from Japanese brand-level price data
Abstract:
Using unique brand-level wholesale price data, this article examines how
purchase prices of commodities for retailers are influenced by wholesale
concentration. Compared with studies focusing on retail prices, little
empirical work has measured the impact of wholesale concentration on
wholesale prices. Economic theory suggests that the sensitivity of
purchase price in response to degree of wholesale concentration is smaller
for large retail formats than for small retail formats in the presence of
intra-format retail competition. To test the validity of the theoretical
implication, I measure the impact of the concentration on purchasing
prices for retailers by format. Empirical findings support the hypothesis
that the large retail format tends to draw advantageous purchase prices
when wholesalers become increasingly oligopolistic.
Journal: Applied Economics
Pages: 2379-2391
Issue: 18
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858042
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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2379-2391
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Dwane
Author-X-Name-First: Christine
Author-X-Name-Last: Dwane
Author-Name: Philip Lane
Author-X-Name-First: Philip
Author-X-Name-Last: Lane
Author-Name: Tara McIndoe
Author-X-Name-First: Tara
Author-X-Name-Last: McIndoe
Title: Currency unions and Irish external trade
Abstract:
Ireland has participated in two currency unions-a bilateral union with
the UK that lasted until 1979 and as a founder member of European Monetary
Union (EMU) that began in 1999. This article investigates whether currency
unions have influenced Irish trade patterns.
Journal: Applied Economics
Pages: 2393-2397
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858109
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858109
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2393-2397
Template-Type: ReDIF-Article 1.0
Author-Name: Libero Monteforte
Author-X-Name-First: Libero
Author-X-Name-Last: Monteforte
Author-Name: Stefano Siviero
Author-X-Name-First: Stefano
Author-X-Name-Last: Siviero
Title: The economic consequences of euro-area macro-modelling shortcuts
Abstract:
Should euro-area economies be modelled in an aggregate (area-wide)
fashion or in a disaggregate (multi-country) one? This article tackles
that question from both statistical and economic viewpoint. From a
statistical viewpoint, aggregation bias criteria are found to signal that
the degree of structural heterogeneity among euro-area economies is such
that the loss of information entailed by an aggregate modelling approach
may be far from trifling. From an economic viewpoint, we investigate the
following issue. Are those statistically detectable heterogeneities of any
practical relevance when it comes to supporting monetary policy
decision-making? To provide an answer to this question, we compute simple
optimal monetary policy reaction functions on the basis of either an
aggregate model or a disaggregate one, and compare the associated welfare
losses. The results suggest that the welfare under-performance of an
area-wide-model-based rule is not only nonnegligible, but also robust with
respect to a number of sensitivity analyses.
Journal: Applied Economics
Pages: 2399-2415
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858075
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858075
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2399-2415
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Gil-Alana
Author-X-Name-First: Luis
Author-X-Name-Last: Gil-Alana
Author-Name: Christian Fischer
Author-X-Name-First: Christian
Author-X-Name-Last: Fischer
Title: International travelling and trade: further evidence for the case of Spanish wine based on fractional vector autoregressive specifications
Abstract:
This article deals with the relationship between international travelling
and trade. For this purpose we focus on a particular case study: the
connection between the Spanish wine exports to Germany and the German
travellers to Spain. Unlike previous studies we use a methodology based on
fractional Vector AutoRegressive (VAR) models, which permits us to compute
the impulse responses in a similar way as in the standard VAR case. The
results show that the orders of integration of the two series are
constrained between 0 and 1, being higher for the arrivals series than for
the exports. The impulse response analysis reveals that an increase in
travelling produces a positive initial impact on trade though it tends to
disappear in the long run.
Journal: Applied Economics
Pages: 2417-2434
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858083
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858083
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2417-2434
Template-Type: ReDIF-Article 1.0
Author-Name: Simone Bertoli
Author-X-Name-First: Simone
Author-X-Name-Last: Bertoli
Author-Name: Giampiero Gallo
Author-X-Name-First: Giampiero
Author-X-Name-Last: Gallo
Author-Name: Giorgio Ricchiuti
Author-X-Name-First: Giorgio
Author-X-Name-Last: Ricchiuti
Title: Exchange market pressure: some caveats in empirical applications
Abstract:
The Exchange Market Pressure (EMP) index, developed by Eichengreen et al.
(1994), is widely used as a tool to signal whether pressure on a currency
is softened or warded off through monetary authorities' interventions or,
rather, a currency crisis has originated. In this article we show how the
index is sensitive to some assumptions behind the aggregation of the
information available (exchange rates, interest rates and reserves),
especially when emerging countries are involved. Specifically, we address
the way exchange rate variations are computed and the impact of different
definitions of the reserves, and we question the constancy of the weights
adopted. These issues compound with the choice of a fixed threshold when
crisis episodes are identified through the EMP index. As a result, one
should exert caution in subsequent econometric analyses where a dependent
binary variable is built to identify crisis periods.
Journal: Applied Economics
Pages: 2435-2448
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858059
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858059
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2435-2448
Template-Type: ReDIF-Article 1.0
Author-Name: Harris Neeliah
Author-X-Name-First: Harris
Author-X-Name-Last: Neeliah
Author-Name: Bhavani Shankar
Author-X-Name-First: Bhavani
Author-X-Name-Last: Shankar
Title: Ozone pollution and farm profits in England and Wales
Abstract:
Tropospheric ozone is an air pollutant known to adversely affect crop
yields across Europe. Experimental work is underway to quantify yield
effects at ambient ozone levels for a number of crops. In this article, we
undertake direct, farm-level evaluation of the impact of ozone by
estimating a multi-output profit function using a panel dataset of cereal
farms in England and Wales. A system of equations, comprising the profit
function, input and output share equations is estimated using a
fixed-effects seemingly unrelated regression technique, with ozone as a
quasi-fixed input. Estimated parameters are used to calculate tropospheric
ozone-related profit and output supply elasticities. The main findings
from the profit function show that a 10% increase in average ozone levels
would decrease variable profits by 1.3% and wheat output supply by 1%.
These results are of a significantly lower magnitude, but qualitatively
consistent with findings from similar studies carried out in North
America.
Journal: Applied Economics
Pages: 2449-2458
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858158
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858158
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2449-2458
Template-Type: ReDIF-Article 1.0
Author-Name: Lindsay Tedds
Author-X-Name-First: Lindsay
Author-X-Name-Last: Tedds
Title: Keeping it off the books: an empirical investigation of firms that engage in tax evasion
Abstract:
This article uses a unique dataset that contains detailed information on
firms from around the world to investigate factors that affect
under-reporting behaviour. The empirical strategy employed exploits the
nature of the dependent variable, which is interval coded, and uses
interval regression which provides an asymptotically efficient estimator
provided that the classical linear model assumptions hold. These
assumptions are investigated using standard diagnostic tests that have
been modified for the interval regression model. Evidence is presented
that shows that the firms in all regions engage in under-reporting.
Regression results indicate that government corruption has the single
largest causal effect on under-reporting, resulting in the percentage of
sales not reported to the tax authority being 51.3% higher. Taxes have the
second single largest causal effect on under-reporting, resulting in the
percentage of sales not reported to the tax authority being 18.0% higher,
followed by access to financing at 8.9% higher and organized crime at 7.6%
higher. Inflation, political instability, exchange rates and the fairness
of the legal system were found to have no effect on under-reporting. It is
also found that there is a significant correlation between under-reporting
and the legal organization of the business, size, age, ownership,
competition and audit controls.
Journal: Applied Economics
Pages: 2459-2473
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858141
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858141
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2459-2473
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Caliendo
Author-X-Name-First: Marco
Author-X-Name-Last: Caliendo
Author-Name: Katharina Wrohlich
Author-X-Name-First: Katharina
Author-X-Name-Last: Wrohlich
Title: Evaluating the German 'Mini-Job' reform using a natural experiment
Abstract:
Increasing work incentives for people with low income is a common topic
in the policy debate across European countries. The 'Mini-Job' reform in
Germany had a similar motivation. We carry out an ex-post evaluation to
identify the short-run effects of this reform. Our identification strategy
uses an exogenous variation in the interview months in the Socio-Economic
Panel Study (SOEP), which allows us to distinguish groups that are
affected by the reform from those who are not. To account for seasonal
effects we additionally use a Difference-In-Differences (DID) strategy.
Descriptives show that there is a post-reform increase in the number of
mini-jobs. However, we show that this increase cannot be causally related
to the reform, since the short-run effects are very limited. Only single
men seem to react immediately and increase secondary job holding.
Journal: Applied Economics
Pages: 2475-2489
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858125
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858125
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2475-2489
Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Mejia-Reyes
Author-X-Name-First: Pablo
Author-X-Name-Last: Mejia-Reyes
Author-Name: Denise Osborn
Author-X-Name-First: Denise
Author-X-Name-Last: Osborn
Author-Name: Marianne Sensier
Author-X-Name-First: Marianne
Author-X-Name-Last: Sensier
Title: Modelling real exchange rate effects on output performance in Latin America
Abstract:
This article empirically analyses real per capita GDP growth for six
Latin American countries (Argentina, Brazil, Chile, Columbia, Mexico,
Venezuela) in terms of real exchange rate depreciations, inflation and US
interest rates, focussing on the role of the real exchange rate. We find
evidence of nonlinearity in this relationship, which we capture through a
smooth transition regression model. With the exception of Mexico,
nonlinearity in economic growth is associated with changes in the real
exchange rate, with depreciations leading to different relationships
compared with appreciations. Regimes for Mexico are associated with the
past growth rates, with effectively symmetric effects of real exchange
rate changes. Although our results are in accord with other recent
literature in that depreciations may have negative effects for growth, the
asymmetries we uncover indicate that these effects depend on the
conditioning state.
Journal: Applied Economics
Pages: 2491-2503
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858117
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858117
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2491-2503
Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Kou Shang
Author-X-Name-First: Jui-Kou
Author-X-Name-Last: Shang
Author-Name: Fei-Ching Wang
Author-X-Name-First: Fei-Ching
Author-X-Name-Last: Wang
Author-Name: Wei-Ting Hung
Author-X-Name-First: Wei-Ting
Author-X-Name-Last: Hung
Title: A stochastic DEA study of hotel efficiency
Abstract:
This current study is the first to apply Stochastic Data Envelopment
Analysis (SDEA) approach to assess the efficiency of hotels. The
determinants of hotel efficiency were also investigated employing the
Tobit regression model approach. The SDEA results show that the SDEA
efficiency measures are higher than the deterministic ones and the greater
the stochastic variability of outputs, the closer the envelope moves
successively to any given observation and the efficiency score approaches
one. The optimal solution to SDEA involves the presence of some buffer
(slack) of all outputs. In applications involving practice production
situation, such buffer (slack) can be interpreted as the firms' need to
hold inventory, excess capacity and organizational slack against
stochastic uncertainty of market environment. Our results also indicate
that resort hotels achieve better efficiency than those in metropolitan
areas and operating as part of a chain is not the main determinant of the
efficiency of international tourist hotels in Taiwan.
Journal: Applied Economics
Pages: 2505-2518
Issue: 19
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840701858091
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701858091
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Handle: RePEc:taf:applec:v:42:y:2010:i:19:p:2505-2518
Template-Type: ReDIF-Article 1.0
Author-Name: Danny Leung
Author-X-Name-First: Danny
Author-X-Name-Last: Leung
Author-Name: Terence Yuen
Author-X-Name-First: Terence
Author-X-Name-Last: Yuen
Title: Do exchange rates affect the capital-labour ratio? Panel evidence from Canadian manufacturing industries
Abstract:
Using industry-level data for Canadian manufacturing industries from 1981
to 1997, we find empirical evidence of a negative relationship between the
capital-labour ratio and the user cost of capital relative to the price of
labour. A 10% increase in the user cost of the Machinery and Equipment
(M&E) relative to the price of labour results in a 3.3% decrease in the
M&E-labour ratio in the long run. Assuming complete exchange rate
pass-through into imported M&E prices, the maximum effect of a permanent
10% depreciation in the exchange rate is a 1.7% decline in the M&E-labour
ratio. This result implies that the cumulative growth of the M&E-labour
ratio during the 1991 to 1997 period would have been 2.3 percentage points
higher had the dollar not depreciated. This may appear to be significant,
but considering both M&E as a share of total capital and the capital share
of nominal output are both approximately one-third, in terms of a simple
growth accounting framework, the effect on labour productivity is small.
Journal: Applied Economics
Pages: 2519-2535
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964476
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964476
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Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2519-2535
Template-Type: ReDIF-Article 1.0
Author-Name: George Davis
Author-X-Name-First: George
Author-X-Name-Last: Davis
Author-Name: Wen You
Author-X-Name-First: Wen
Author-X-Name-Last: You
Title: The time cost of food at home: general and food stamp participant profiles
Abstract:
Little is known about the cost of time in food preparation at home. Yet,
this economic variable is a common thread running through recent concerns
about obesity and the Food Stamp (FS) program. This article provides
initial estimates of the time cost in food preparation at home for the
United States. Two standard methods of estimation are implemented and
three demographic profiles are considered: (i) the general population,
(ii) the typical FS participant and (iii) the typical FS participant
following the United States Department of Agriculture Thrifty Food Plan.
For the general population and averaging across methods, the time cost
share of total food cost is about 30% if the individual works in the
market and at home, but it is about 49% if the individual does not work in
the market. For the typical FS participant, especially one following the
Thrifty Food plan, the time cost share of total food cost can be as much
as 26% higher than the general population. These substantial percentages
provide strong incentives to purchase food away from home and help
undermine overall diet quality and the efficacy of the FS program, which
ignores the time cost in food at home production.
Journal: Applied Economics
Pages: 2537-2552
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964468
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Handle: RePEc:taf:applec:v:42:y:2010:i:20:p:2537-2552
Template-Type: ReDIF-Article 1.0
Author-Name: Gareth David Leeves
Author-X-Name-First: Gareth David
Author-X-Name-Last: Leeves
Title: Declining US output volatility and its effect on labour flow volatility: an MGARCH analysis
Abstract:
This article analyses flow rates of US workers between employment and
unemployment using new quarterly data for the period 1967 to 2002.
Multivariate GARCH models are used to investigate links between flow-rate
volatilities. The results suggest that links changed substantially in the
mid 1980s, coinciding with the documented decline in output volatility.
These changes in adjustment dynamics are consistent with a move to greater
use of hours rather than worker adjustment.
Journal: Applied Economics
Pages: 2553-2561
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801949774
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Template-Type: ReDIF-Article 1.0
Author-Name: Risa Kumazawa
Author-X-Name-First: Risa
Author-X-Name-Last: Kumazawa
Title: Promotion speed and its effect on attrition of Navy-enlisted personnel: addressing heterogeneity in high school credentials
Abstract:
This article investigates the relationship between recruit quality and
promotion speed of the US Navy's first-term enlisted personnel, which in
turn is expected to affect retention. It also investigates whether there
are quality differences between the various types of high school
credentials presented at the time of recruitment, including test-based and
attendance-based equivalencies and nontraditional high school diplomas.
The results of this article suggest that the Navy's recent targeting of
individuals with alternative high school credentials and nonhigh school
graduates, who score in the top half of the Armed Forces Qualification
Tests (AFQTs) as substitutes for diploma holders have desirable results
for promotion speed but undesirable results for retention.
Journal: Applied Economics
Pages: 2563-2576
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964450
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Template-Type: ReDIF-Article 1.0
Author-Name: Vladimir Kuhl Teles
Author-X-Name-First: Vladimir Kuhl
Author-X-Name-Last: Teles
Author-Name: Maria Carolina Leme
Author-X-Name-First: Maria Carolina
Author-X-Name-Last: Leme
Title: Fundamentals or market sentiment: what causes country risk?
Abstract:
The country risk indicator, as measured by the JP Morgan's EMBI or grades
of rating agencies such as Standard & Poor's (S&P's) or Moody's, does not
seem to truly reflect the fundamentals of an economy. Countries that
pursue sound economic policies are frequently placed on the same level as
countries with a populist orientation or with a recent history of default
or debt restructuring. Such circumstance generates a feeling of unease
with regard to these ratings. The objective of this article is to
investigate whether these indicators truly reflect market fundamentals or
whether some sort of prejudice, or intolerance towards certain countries,
can be identified. We use the Oaxaca-Blinder decomposition to analyse the
differences in country risk, measured as by EMBI+, for a group of emerging
markets. This decomposition allows us to separate the 'justified'
(differences in fundamentals) from the 'unjustified' differences (same
fundamental differently evaluated).
Journal: Applied Economics
Pages: 2577-2585
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964518
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Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Ho Chiu
Author-X-Name-First: Yung-Ho
Author-X-Name-Last: Chiu
Author-Name: Chun-Mei Ma
Author-X-Name-First: Chun-Mei
Author-X-Name-Last: Ma
Author-Name: Ming-Yuan Sun
Author-X-Name-First: Ming-Yuan
Author-X-Name-Last: Sun
Title: Efficiency and credit rating in Taiwan banking: data envelopment analysis estimation
Abstract:
In this article, we use the data envelopment analysis to measure the
efficiency of banks before and after credit rating is taken into
consideration and we also employ the Malmquist Productivity Index to
measure the total factor productivity changes from 2001 to 2003. The
results are as follows: (1) There is a positive relationship between the
efficiency scores and credit rating, and thus, the credit rating can be a
representative to evaluate the performance and quality of a bank; (2) We
use the Wilconxon two-sample test of nonparametric statistic to test the
influences of credit rating. The empirical result shows that the credit
rating is proven to influence the efficiency of banks; (3) The efficiency
scores improve in both investment grade (above tw BBB-) and speculation
grade (under tw BBB-), when credit rating is taken into consideration. The
empirical results show that the efficiency scores of banks with a high
credit rating improved relatively more when compared to banks with a lower
credit rating; (4) In this research we also adopt the Malmquist index to
observe the productivity and efficiency changes from year to year. We
obtain results whereby the improvement of efficiency may be influenced
greatly both from pure technical and scale efficiency changes.
Journal: Applied Economics
Pages: 2587-2600
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964443
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Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Bilson Darku
Author-X-Name-First: Alexander
Author-X-Name-Last: Bilson Darku
Title: Consumption smoothing, capital controls and the current account in Ghana
Abstract:
Much of the empirical evidence on developing economies indicates that the
basic intertemporal model of the current account fails to predict the
dynamics of the actual current account series. This article argues that
the model can predict the dynamics of the current account series if it is
appropriately adjusted to reflect the nature of capital mobility and
exchange rate policies in these countries. Using data on Ghana that span
across capital control and liberalized regimes this article reports three
finding. First, consistent with the existing empirical evidence, the basic
model fails to predict the dynamics of the actual current account. Second,
extending the basic model to capture variations in interest rates and
exchange rates better explains the path of the actual current account
balances only during the liberalized regime. Third, tests of asymmetric
access to the international financial market indicate that economic agents
in Ghana could not use the international financial market to smooth their
consumption during the capital control regime. However, the liberalization
program that reduced constraints on capital flows has enabled economic
agents to use the international capital market to smooth consumption.
Journal: Applied Economics
Pages: 2601-2616
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964542
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Template-Type: ReDIF-Article 1.0
Author-Name: Seher Nur Sulku
Author-X-Name-First: Seher Nur
Author-X-Name-Last: Sulku
Title: Econometric testing of purchasing power parity in less developed countries: fixed and flexible exchange rate regime experiences
Abstract:
We investigate the Purchasing Power Parity (PPP) hypothesis for 16 Less
Developed Countries (LDCs), from all over the world, during their fixed
and flexible exchange rate experiences over the period 1957:01-1999:12.
The main contribution of this article to the empirical literature on PPP
is that our study is the first to consider PPP hypothesis on alternative
exchange rate regimes for LDCs. The bilateral exchange rates of LDCs and
the United States, and their respective price levels are considered. Three
different time series methodologies are employed: unit-root tests,
Engle-Granger (1987) cointegration technique and Johansen multivariate VAR
methodology (1988). The cointegration techniques improve the results,
which allows the examination of the more frequent long-run relationship
between relative prices and nominal exchange rates. Nevertheless, using
each of econometric techniques we find only a few and a nearly equal
evidence in favour of PPP under the alternative regimes in LDCs. Hence,
the main conclusion of our study is that the deviations from PPP in LDCs
cannot be attributed to the exchange rate regime system. Other market
regulations should be investigated.
Journal: Applied Economics
Pages: 2617-2630
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964534
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Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Coric
Author-X-Name-First: Bruno
Author-X-Name-Last: Coric
Author-Name: Geoff Pugh
Author-X-Name-First: Geoff
Author-X-Name-Last: Pugh
Title: The effects of exchange rate variability on international trade: a meta-regression analysis
Abstract:
The trade effects of exchange rate variability have been an issue in
international economics for the past 30 years. The contribution of this
article is to apply meta-regression analysis (MRA) to the empirical
literature. On average, exchange rate variability exerts a negative effect
on international trade. Yet MRA confirms the view that this result is
highly conditional, by identifying factors that help to explain why
estimated trade effects vary from significantly negative to significantly
positive. MRA evidence on the pronounced heterogeneity of the empirical
findings may be instructive for policy: first, by establishing that
average trade effects are not sufficiently robust to generalize across
countries; and second, by suggesting the importance of hedging
opportunities - hence of financial development - for trade promotion. For
the practice of MRA, we make a case for checking the robustness of results
with respect to estimation technique, model specification and sample.
Journal: Applied Economics
Pages: 2631-2644
Issue: 20
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964500
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Template-Type: ReDIF-Article 1.0
Author-Name: Ludger Wossmann
Author-X-Name-First: Ludger
Author-X-Name-Last: Wossmann
Title: Families, schools and primary-school learning: evidence for Argentina and Colombia in an international perspective
Abstract:
This article presents evidence on the associations between family
background, school characteristics and student performance in primary
school in Argentina, Colombia and several comparison countries. As a
general pattern, educational performance is strongly related to family
background, weakly to some institutional school features and hardly to
schools' resource endowments. In an international perspective,
family-background effects are relatively large in Argentina, and
relatively small in Colombia. A specific Argentine feature is the lack of
performance differences between rural and urban areas. A specific
Colombian feature is the lack of significant between-gender performance
differences. Nonnative students and students not speaking Spanish at home
perform particularly weak in both countries. In Argentina, students
perform better in schools with a centralized curriculum and ability-based
class formation.
Journal: Applied Economics
Pages: 2645-2665
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964617
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Template-Type: ReDIF-Article 1.0
Author-Name: Deepananda Herath
Author-X-Name-First: Deepananda
Author-X-Name-Last: Herath
Author-Name: John Cranfield
Author-X-Name-First: John
Author-X-Name-Last: Cranfield
Author-Name: Spencer Henson
Author-X-Name-First: Spencer
Author-X-Name-Last: Henson
Title: Understanding the financing of innovation and commercialization: the case of the Canadian functional food and nutraceutical sector
Abstract:
We develop and implement two models to show what factors affect a firm's
decision to seek external financing and the level of financing obtained in
the Canadian functional food and nutraceutical sector. Data from a
national survey of functional foods and nutraceutical firms in Canada,
conducted by Statistics Canada in 2003, is used for this analysis. Firm
size, being privately held and engaging in contractual arrangements have
negative impacts on the likelihood of a firm seeking external funding,
while firms which are intensively involved in the functional food and
nutraceutical sector, with greater prospects for business expansion and/or
involved in partnerships are more likely to seek external financing.
Larger firms and those involved in functional food and nutraceutical
research and development receive a greater amount of capital when they
decide to raise capital. However, firms focused on functional foods and
nutraceuticals, as opposed to more diversified firms, and those involved
in product development and concept scale-up, receive less capital. Our
findings highlight the importance of public support in addressing the
capital requirements of functional food and nutraceutical firms and
underscore the considerable burden borne by smaller firms in this respect.
Journal: Applied Economics
Pages: 2667-2682
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964658
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Template-Type: ReDIF-Article 1.0
Author-Name: Djeto Assane
Author-X-Name-First: Djeto
Author-X-Name-Last: Assane
Author-Name: Bernard Malamud
Author-X-Name-First: Bernard
Author-X-Name-Last: Malamud
Title: Financial development and growth in sub-Saharan Africa: do legal origin and CFA membership matter?
Abstract:
This article examines whether relations between legal origin, financial
development and economic growth that hold worldwide hold in British and
French legal origin Sub-Saharan Africa (SSA) as well. We also test for the
differential impacts on financial development and on growth of Communaute
Financiere Africaine (CFA) currency union membership within French legal
origin SSA. Our panel regressions and descriptive measures agree with the
findings of British legal origin advantage with respect to financial
development. In addition, financial development contributes positively to
economic growth in British legal origin SSA, as it does worldwide. Within
French legal origin SSA, we find that currency union constraints tend to
hinder financial development in CFA countries beyond the negative impacts
of French legal origin. Moreover, contributions to the growth of various
indicators of financial development in French legal origin SSA are
negative or insignificant irrespective of CFA membership.
Journal: Applied Economics
Pages: 2683-2697
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964591
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Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2683-2697
Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Thornton
Author-X-Name-First: Jeremy
Author-X-Name-Last: Thornton
Author-Name: William Belski
Author-X-Name-First: William
Author-X-Name-Last: Belski
Title: Financial reporting quality and price competition among nonprofit firms
Abstract:
Donors increasingly rely on financial information reported by Internal
Revenue Service (IRS) Form 990 to allocate donations among nonprofit
firms. However, competition among nonprofits creates an incentive for
managers to under-report management and fund-raising expenditures to make
their firms appear relatively efficient. Increasingly, researchers suspect
that information provided in the Form 990 may not accurately portray the
true financial condition of nonprofit firms. Inaccurate price information
weakens the ability of donors to promote efficiency and discipline excess
among nonprofit managers. This article examines the reaction of donors to
variation in Form 990 reporting quality. We find that donors reward
nonprofit firms for investments in more accurate financial reporting.
Additionally, higher quality financial information sharpens the ability of
donor markets to discipline nonprofit firms by increasing price
sensitivity. The primary implication of this study is that regulatory
improvements in reporting quality could increase the ability of donor
markets to serve as a viable governance mechanism for improving nonprofit
efficiency.
Journal: Applied Economics
Pages: 2699-2713
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964583
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964583
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Template-Type: ReDIF-Article 1.0
Author-Name: Ali Ahmed
Author-X-Name-First: Ali
Author-X-Name-Last: Ahmed
Title: What is in a surname? The role of ethnicity in economic decision making
Abstract:
This article reports results from two experiments that investigate
possible incidence of discrimination against people with foreign
backgrounds in Sweden. In the first experiment, participants played the
trust game and the dictator game with co-players of different ethnic
affiliation. The family name of the players was exposed to their
co-players. Results for the trust game showed no significant
discrimination against co-players with foreign backgrounds. On the other
hand, the results for the dictator game showed a statistically significant
discriminatory behaviour by men against co-players with non-European
backgrounds. The discriminatory behaviour was solely a male phenomenon. In
the second experiment, the dictator game was replicated to check the
stability of the results in the first experiment. The second experiment
also examined whether people with foreign backgrounds discriminate against
other people with foreign backgrounds; that is, the purpose was to
discover whether discrimination is systematic. The observations in the
second experiment underlined the results found in the first experiment:
foreign co-players are discriminated against by Swedish players. However,
we did not find that people with foreign backgrounds discriminated against
other people with foreign backgrounds.
Journal: Applied Economics
Pages: 2715-2723
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964609
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Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Kara
Author-X-Name-First: Hakan
Author-X-Name-Last: Kara
Author-Name: Hande Kucuk-Tuğer
Author-X-Name-First: Hande
Author-X-Name-Last: Kucuk-Tuğer
Title: Inflation expectations in Turkey: learning to be rational
Abstract:
Turkey implemented an ambitious restructuring of the economy in the past
several years, including the adoption of inflation targeting along with a
floating exchange rate regime. Inflation came down from almost triple
digits to single digits between 2001 and 2005. This particular episode of
the Turkish economy sets a genuine case study for investigating the
possible changes in the behaviour of inflation expectations upon a regime
shift. Accordingly, this study analyses inflation expectations in Turkey,
focusing especially on the post-2001 transition phase. We first conduct
classical tests of unbiasedness and efficiency using aggregate survey data
between August 2001 and October 2007 to get a statistical benchmark for
rationality; we find that classical tests reject full rationality
hypothesis for all series except next month's Consumer Price Index (CPI)
inflation expectations. Then, we carry out Time-Varying Parameter (TVP)
estimates based on a Kalman filter to see how the coefficients in the
classical test equations evolve over time. This framework allows us to see
whether there is convergence to rationality in terms of unbiasedness and
efficiency. We find that forecast performance has improved through time,
as the coefficients on the test equations shows movement towards values
implied by unbiasedness and efficiency hypotheses, supporting the learning
hypothesis.
Journal: Applied Economics
Pages: 2725-2742
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964559
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Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Liang Chen
Author-X-Name-First: Chao-Liang
Author-X-Name-Last: Chen
Title: The pension costs from a defined benefit to individual pension accounts: do they cost more in the case of Taiwan?
Abstract:
This article develops a market-based liability valuation model to price
individual pension costs of a Defined Benefit (DB) pension plan. The
purpose is to compare them with the new labour pension plan, Individual
Pension Accounts (IPAs), in the case of Taiwan. The results based on the
numerical approach show that the new IPAs cost a company more than the old
DB plan, except if the average wage growth relative to the risk-free
interest rate is high enough.
Journal: Applied Economics
Pages: 2743-2750
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964567
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Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2743-2750
Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo Reverte
Author-X-Name-First: Carmelo
Author-X-Name-Last: Reverte
Author-Name: Isidoro Guzman
Author-X-Name-First: Isidoro
Author-X-Name-Last: Guzman
Title: The predictive ability of relative efficiency for future earnings: an application using data envelopment analysis to Spanish SMEs
Abstract:
Research on earnings prediction has documented that the transitory
component of current earnings undermines its predictive ability about
future earnings. The implication of this finding is that a measure that
better captures the underlying persistent component of earnings may prove
very useful in predicting future earnings when used along with current
earnings. Our study, based on a large sample of 1939 Spanish Small and
medium Enterprises (SMEs), investigates whether an alternative measure of
performance ignored in previous research on earnings forecasting-i.e.
relative efficiency-has predictive ability over and above current earnings
and book value of equity. Relative efficiency captures the inherent
ability of a firm-as compared to other similar firms-to make the most
productive use of available resources and is measured using Data
Envelopment Analysis (DEA) nonparametric technique. Our findings highlight
that our DEA-based efficiency measure has an incremental predictive
ability over and above current earnings and book value of equity for
predicting future earnings. Moreover, we have further validated the models
in a holdout sample and our results evidence the highest forecast accuracy
of the model that includes our efficiency measure as an additional
predictor to current earnings and book value of equity.
Journal: Applied Economics
Pages: 2751-2757
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964575
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964575
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Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2751-2757
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Graff
Author-X-Name-First: Michael
Author-X-Name-Last: Graff
Title: Does a multi-sectoral design improve indicator-based forecasts of the GDP growth rate? Evidence from Switzerland
Abstract:
This article presents a multi-sectoral composite indicator for the Swiss
GDP growth rate, targeting a lead of two quarters. The in-sample period
ranges from 1991 to 2002 and 14 data points are reserved as out of sample
to assess the forecasting performance. The results appear promising, in
terms of both phase and amplitude. Comparisons with two other uni-sectoral
composite leading indicators for the same reference series-the traditional
KOF (Konjunkturforschungsstelle) barometer as published until March 2006
and a uni-sectoral composite indicator computed from the same indicators
as the multi-sectoral instrument-show that the new approach is superior to
the alternatives, which is due to both its broader information basis as
well as to the structure that is imposed by the multi-sectoral design.
Yet, there are pronounced differences regarding the accuracy of the
sectoral forecasts, so that there is scope for improvement.
Journal: Applied Economics
Pages: 2759-2781
Issue: 21
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964641
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964641
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Handle: RePEc:taf:applec:v:42:y:2010:i:21:p:2759-2781
Template-Type: ReDIF-Article 1.0
Author-Name: A. Slaibi
Author-X-Name-First: A.
Author-X-Name-Last: Slaibi
Author-Name: D. Chapman
Author-X-Name-First: D.
Author-X-Name-Last: Chapman
Author-Name: H. Daouk
Author-X-Name-First: H.
Author-X-Name-Last: Daouk
Title: A geopolitical theory of oil price behaviour: an econometric evaluation
Abstract:
Previous work on crude oil price modelling has generally focused on two
theoretical approaches, either the+ optimal control analysis of pricing of
a depletable resource or Organization of the Petroleum Exporting Countries
(OPEC) as a partial monopolist setting oil prices to maximize net present
value. Neither has been wholly satisfactory. We consider a different
perspective: a cooperative framework in which political and military
factors interacted with economic considerations for oil exporters and
importers to define a Target Price Zone (TPZ). We analyse several issues
in this context: monthly versus annual average prices, beginning and
ending dates for TPZs, degree of stability in several price series (West
Texas Intermediate (WTI), Brent, etc.), Free On Board (FOB) and landed
prices, real or nominal prices, OPEC behaviour and effect of the Euro
exchange rate on dollar denominated oil prices. We conclude that a TPZ
system was in operation from 1986 through 2003. The TPZ worked imperfectly
but with a substantial degree of predictability for 18 years. In 2004, the
TPZ system deteriorated for several reasons and has not been
re-established. Perhaps the US government supports the Saudis because it
has always believed it had a two-way relation with OPEC generally and the
Persian Gulf countries in particular. We give them protection and they
supply oil.1 The Bush trip [1986] came as an additional incentive to
restore some stability to prices … What they [the Saudis] heard was
the Vice President of the United States of America saying that the price
collapse was destabilizing and threatened the security of the United
States … The Saudis looked to the United States for their own
security; surely, they thought in the aftermath of the Bush visit, they
would have to be attentive to the security needs of the United States.2
Journal: Applied Economics
Pages: 2783-2800
Issue: 22
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964724
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964724
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Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2783-2800
Template-Type: ReDIF-Article 1.0
Author-Name: Brigitte Desroches
Author-X-Name-First: Brigitte
Author-X-Name-Last: Desroches
Author-Name: Michael Francis
Author-X-Name-First: Michael
Author-X-Name-Last: Francis
Title: World real interest rates: a global savings and investment perspective
Abstract:
Over the past 15 years, long-term interest rates have declined to levels
not seen since the 1970s. This article explores possible shifts in global
savings and investment that have led to this fall in the world real
interest rate. There are several key findings. First, the authors identify
the relative weakness in investment demand as more important than the
relative increase in desired global savings to explain the decline in
global interest rates. Second, the results indicate that the key factors
explaining movements in savings and investment are variables that evolve
relatively slowly over time, such as labour force growth and age
structure. The conclusions suggest that over the coming years, world real
interest rates are likely to continue to adjust slowly, reflecting
long-term trends.
Journal: Applied Economics
Pages: 2801-2816
Issue: 22
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964690
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964690
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Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2801-2816
Template-Type: ReDIF-Article 1.0
Author-Name: Adalbert Mayer
Author-X-Name-First: Adalbert
Author-X-Name-Last: Mayer
Title: The evolution of wages over the lifecycle: insights from intergenerational connections
Abstract:
This article uses intergenerational information to improve our
understanding of lifecycle wage dynamics. I present a simple statistical
model that relates the wages of workers at different points in their
lifecycle to the earnings of their parents. I decompose cross-sectional
variance of wages into a permanent component related to parental
background, a permanent component unrelated to parental background, and a
transitory component. Data from the Panel Study of Income Dynamics (PSID)
suggests that intergenerational relationships are stronger when measured
later in the lifecycle of the son. This implies that the permanent
parent-related component is increasingly important for wage determination
as workers grow older. This is not consistent with wage evolution through
persistent random shocks. Rather, it is consistent with human capital
models and learning models of wage evolution.
Journal: Applied Economics
Pages: 2817-2833
Issue: 22
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964682
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964682
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Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2817-2833
Template-Type: ReDIF-Article 1.0
Author-Name: N. Guertzgen
Author-X-Name-First: N.
Author-X-Name-Last: Guertzgen
Title: Rent-sharing and collective wage contracts-evidence from German establishment-level data
Abstract:
Using German establishment-level data, this article analyses whether
wages respond to firm-specific profitability conditions. Particular
emphasis is given to the question of whether the extent of rent-sharing
varies with collective bargaining coverage. In this context, two
conflicting hypotheses are tested. The first one asserts that unions
exploit their bargaining power at the firm level and appropriate a larger
share of rents than the bargaining parties in uncovered firms. The second
one states that unions favour a compressed intra-industry wage structure
and suppress the responsiveness of wages to firm-specific profitability
conditions. The empirical analysis provides strong support for the second
hypothesis. While Pooled Ordinary Least Squares (POLS) estimates yield
positive estimates of the rent-sharing coefficient in covered
establishments, dynamic panel data estimates accounting for unobserved
heterogeneity and the endogeneity of rents point to a rent-sharing
coefficient of zero.
Journal: Applied Economics
Pages: 2835-2854
Issue: 22
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964708
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964708
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Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2835-2854
Template-Type: ReDIF-Article 1.0
Author-Name: David Nawrocki
Author-X-Name-First: David
Author-X-Name-Last: Nawrocki
Author-Name: William Carter
Author-X-Name-First: William
Author-X-Name-Last: Carter
Title: Industry competitiveness using Herfindahl and entropy concentration indices with firm market capitalization data
Abstract:
While previous studies of industry concentration have traditionally
utilized sales or market share data, no studies that we are aware of have
been done with market capitalization data. If the markets are successful
at valuing a firm's current and future prospects, it can be argued that
concentration indices and other metrics based on the market value of the
firms in an industry should be a good proxy for market power within an
industry. This study presents a study of the market concentration using
the Herfindahl and entropy concentration indices for 13 industries.
Journal: Applied Economics
Pages: 2855-2863
Issue: 22
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964666
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964666
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Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2855-2863
Template-Type: ReDIF-Article 1.0
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: Nonstationarity, cointegration and structural breaks in the Australian term structure of interest rates
Abstract:
This article examines the unit-root property of the Australian short- and
long-term interest rates using unit-root tests that accommodate a single
or two breaks under the null and/or alternative hypothesis. Two breaks in
interest rates are found to coincide with the 1982/83 and 1990/91
recessions or the 1993 inflation targeting period. We further investigate
the implications of these structural breaks on the cointegrating
relationship implied by the single, linear expectations hypothesis of the
term structure of interest rates. While there is evidence that the data
are consistent with the expectations hypothesis at the shorter end of the
term structure, breaks in interest rates generate a shift in the
cointegrating relationship, thus altering the information content of the
term structure. Failing to account for a regime shift in the cointegration
regression, the data erroneously supports the expectations hypothesis at
the longer end of the term structure. These results have profound
implications for policy makers who may inadequately exploit the
information content of the term structure to predict future changes in
inflation.
Journal: Applied Economics
Pages: 2865-2879
Issue: 22
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964625
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964625
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Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2865-2879
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Simon Ville
Author-X-Name-First: Simon
Author-X-Name-Last: Ville
Title: Ranking and clustering of the faculties of commerce research performance in Australia
Abstract:
There is a growing policy focus in Australian higher education on
quantitative research performance assessment. However, most of the
analysis has addressed aggregate performance at the institutional level,
an approach inconsistent with recent policy emphasis on diversity among
universities and one that ignores performance variations across
disciplines. Using averaged and all available data for 2000-2004, cluster
analysis is used to classify Australian Commerce Faculties into groups
that exhibit similar research performance, measured by publication, PhD
completion and secured competitive research grant funding. We also use
factor analysis to generate full-multidimensional rankings within the
resulting two or three clusters. It is found that in terms of total
research output, with the exception of Adelaide all the Group of 8 (Go8)
members plus University of Technology, Sydney and Griffith always belong
to 'Clusters A'. However, when research performance is expressed in per
academic staff terms, an additional 11 universities join this same
cluster. Our results additionally show that eight Australian faculties of
Commerce not only possess low total research output but their per capita
performance is also poor.
Journal: Applied Economics
Pages: 2881-2895
Issue: 22
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964674
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964674
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Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2881-2895
Template-Type: ReDIF-Article 1.0
Author-Name: Jeng Bau Lin
Author-X-Name-First: Jeng Bau
Author-X-Name-Last: Lin
Author-Name: Chin Chia Liang
Author-X-Name-First: Chin Chia
Author-X-Name-Last: Liang
Title: Testing for threshold cointegration and error correction: evidence in the petroleum futures market
Abstract:
This article examines the existence of threshold cointegration between
futures and spot prices for the Brent petroleum market. We then estimate
the asymmetric error-correction specification utilizing the Momentum
Threshold Autoregressive Consistent (M-TAR-C) approach particularly
proposed by Enders and Siklos (2001). We find that, for the daily data
over 2 January 2001 through 15 October 2006, the petroleum futures prices
are cointegrated with the spot prices. This effectively confirms the
expectations hypothesis and that asymmetric adjustments for the futures
basis towards the long-run value display a negative basis from the
long-run equilibrium level more persistently than a positive basis from
that level. The empirical result suggests that short-run arbitrages
manipulating buy-long (sell-short) futures contracts be profitable when a
positive basis is weakening (a negative basis is strengthening).
Journal: Applied Economics
Pages: 2897-2907
Issue: 22
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964716
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964716
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Handle: RePEc:taf:applec:v:42:y:2010:i:22:p:2897-2907
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dueker
Author-X-Name-First: Michael
Author-X-Name-Last: Dueker
Author-Name: Katrin Assenmacher-Wesche
Author-X-Name-First: Katrin
Author-X-Name-Last: Assenmacher-Wesche
Title: Forecasting macro variables with a Qual VAR business cycle turning point index
Abstract:
One criticism of Vector Autoregression (VAR) forecasting is that
macroeconomic variables tend not to behave as linear functions of their
own past around business cycle turning points. A large amount of
literature therefore focuses on nonlinear forecasting models, such as
Markov switching models, which only indirectly capture the relation with
turning points. This article investigates a direct approach to using
information on turning points from the National Bureau of Economic
Research (NBER) chronology to model and forecast macroeconomic data. Our
Qual VAR model includes a truncated normal latent business cycle index
that is negative during NBER recessions and positive during expansions. We
motivate our forecasting exercise by demonstrating that if starting from a
linear specification, a truncated normal variable is an omitted variable,
then forecasts of the remaining variables will become nonlinear functions
of their own past. We apply the Qual VAR model to recursive out-of-sample
forecasting and find that the Qual VAR improves on out-of-sample forecasts
from a standard VAR.
Journal: Applied Economics
Pages: 2909-2920
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964732
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964732
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2909-2920
Template-Type: ReDIF-Article 1.0
Author-Name: Feng Liu
Author-X-Name-First: Feng
Author-X-Name-Last: Liu
Title: Cutting through the smoke: separating the effect of price on smoking initiation, relapse and cessation
Abstract:
I employ a large national representative dataset (Current Population
Survey-Tobacco Use Supplements) to investigate how cigarette prices affect
smoking decisions. A standard econometric approach is to estimate the
relationship between cigarette prices and smoking participation at a point
in time. I extend this approach to model past-year decisions to start,
resume or quit smoking. Considering reverse causality, I apply an
instrumental variable (excise taxes) for cigarette prices. I include an
index of state-level anti-smoking sentiment to control for omitted
variable bias. After estimating separate models for smoking initiation,
relapse and cessation and for different age groups, I find no evidence
that increasing taxes on cigarettes can prevent the onset of youth
smoking. Neither does it effectively induce young smokers to quit.
However, cigarette prices do play an important role to prevent relapse and
encourage quitting at older ages.
Journal: Applied Economics
Pages: 2921-2939
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964880
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964880
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2921-2939
Template-Type: ReDIF-Article 1.0
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Mubariz Hasanov
Author-X-Name-First: Mubariz
Author-X-Name-Last: Hasanov
Title: The effects of inflation uncertainty on interest rates: a nonlinear approach
Abstract:
In this article, we investigate the effects of inflation variability on
short-term interest rates within a nonlinear smooth transition regression
framework. The test results suggest that only the conditional mean of the
inflation is a nonlinear process whereas the conditional variance is time
variant but linear. Using the square root of conditional variance as a
proxy for inflation risk, we estimate Fisher equation augmented with
inflation risk. Although the estimated Fisher equations suggest that
inflation risk reduces short-term interest rates, we find that the effects
of inflation risk on interest rates are regime-dependent. Particularly, we
find that the negative effects of inflation variability on nominal rates
are greater in low-inflationary regimes when compared to high-inflationary
regimes. On the other hand, it is found that both inflation and inflation
uncertainty raise the expected inflation effect.
Journal: Applied Economics
Pages: 2941-2955
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964757
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964757
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2941-2955
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Shoesmith
Author-X-Name-First: Gary
Author-X-Name-Last: Shoesmith
Title: Four factors that explain both the rise and fall of US crime, 1970-2003
Abstract:
Previous research has failed to explain the rise and fall of US crime
since 1970. This study uses cointegration, error correction and common
long-memory components analyses to demonstrate that four basic crime
factors explaining both the increases in US violent and property crime
between 1970 and 1991 and the dramatic declines in crime after 1991. The
four factors include arrest rates, income per capita, the proportion of
criminal-justice resources devoted to drug crime and alcohol consumption.
Error correction models and common long-memory factors show an especially
close link between crime rates and the percentage of prison resources
devoted to drug offenders. Similar factors result in cointegrated models
for murder, rape, robbery, assault and larceny. Additional modelling shows
that effective abortion rates computed along the lines of Donohue and
Levitt (2001) do not help in explaining the rise and fall of US crime.
Journal: Applied Economics
Pages: 2957-2973
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964765
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964765
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2957-2973
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-eun Lee
Author-X-Name-First: Jong-eun
Author-X-Name-Last: Lee
Title: Inequality in the globalizing Asia
Abstract:
This article investigates the impact of globalization on the inequality
of Asia. It is the first attempt to examine 11 Asian countries' panel data
allowing nonlinearity between globalization and inequality from 1960 to
2003 with robustness check. We also survey the literature on growth,
globalization, and inequality and reflect their endogenous relationships
to our article. We found the significant turning point of globalization at
which inequality starts decreasing as further globalization proceeds. It
will offer us policy implications for the ongoing process of globalization
in the Asian economies.
Journal: Applied Economics
Pages: 2975-2984
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964781
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964781
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2975-2984
Template-Type: ReDIF-Article 1.0
Author-Name: Nissim Ben David
Author-X-Name-First: Nissim Ben
Author-X-Name-Last: David
Title: Government policy to reduce pollution emissions within the overlapping generations model
Abstract:
This article develops an overlapping generations model with multiple
categories of capital. The importance of this article is in its ability to
analyse changes in the distribution of various categories of capital along
the growth path of the economy. Economic growth is accompanied by capital
growth as well as increase in pollution emissions. Implementing a
government policy to reduce pollution emission would change the
equilibrium path of capital distribution. Within the model, the government
builds a corporate tax function that defines the tax rate as a function of
a 'desired' pollution level. The tax rate decreases as the 'desired'
pollution level is higher. When the 'desired' pollution level is higher
than the actual pollution level, production is subsidized and pollution
levels rise. An example and a simulation are presented in order to confirm
the theoretical results and demonstrate that the model can be used for
empirical analysis.
Journal: Applied Economics
Pages: 2985-2998
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964799
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964799
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2985-2998
Template-Type: ReDIF-Article 1.0
Author-Name: Doyoung Kim
Author-X-Name-First: Doyoung
Author-X-Name-Last: Kim
Title: The use of stock-based pay for sorting: an empirical analysis of compensation for new CEOs
Abstract:
Examining stock-based compensation for newly hired CEOs, this article
finds that the sensitivity of stock-based pay to performance is higher for
new economy, young and volatile firms. Of the components of stock-based
pay, it is option grants that generate such variation across firms. It
also finds that this cross-firm variation in pay-performance sensitivity
is more pronounced for the CEO's first year in office. These findings
support the view that firms use stock-based pay to new CEOs for sorting.
Journal: Applied Economics
Pages: 2999-3010
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964807
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964807
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:2999-3010
Template-Type: ReDIF-Article 1.0
Author-Name: Shao-Hsun Keng
Author-X-Name-First: Shao-Hsun
Author-X-Name-Last: Keng
Author-Name: Yang Li
Author-X-Name-First: Yang
Author-X-Name-Last: Li
Title: Decomposition of total factor productivity in world health production: a stochastic frontier approach
Abstract:
While countries around the globe have increased spending on health care,
economists and policy makers have raised concerns over the productivity
and efficiency of health care. This article applies a stochastic frontier
approach to address this issue using data from 141 countries for the
period 1993 to 1997. From the perspective of productivity change, our
results suggest that gains in population health will be greater provided
that more resources are allocated to investment in human capital. We also
show that the scale component accounts for 65-70% of the productivity
change. That is, omitting the scale component in our case will result in a
significant underestimation of the decline in the productivity of world
health production. We do not find evidence supporting the hypothesis that
production frontiers differ between Organization for Economic Cooperation
and Development (OECD) and non-OECD countries. However, the change in
productivity and scale elasticity do vary significantly between these
countries.
Journal: Applied Economics
Pages: 3011-3021
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964815
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964815
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:3011-3021
Template-Type: ReDIF-Article 1.0
Author-Name: Maxym Chaban
Author-X-Name-First: Maxym
Author-X-Name-Last: Chaban
Title: Cointegration analysis with structural breaks and deterministic trends: an application to the Canadian dollar
Abstract:
This article applies recent developments in cointegration analysis with
structural breaks and deterministic trends to analyse the relationship
between the real Canada-US exchange rate and commodity prices. Previous
empirical studies disagree on whether these variables are cointegrated.
The root of disagreement could be in the handling of deterministic trends
and potential structural breaks. I find that even after controlling for
these matters, the question of whether the real exchange rate and
commodity prices are cointegrated for Canada remains unresolved.
Journal: Applied Economics
Pages: 3023-3037
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964823
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:3023-3037
Template-Type: ReDIF-Article 1.0
Author-Name: Ofer Azar
Author-X-Name-First: Ofer
Author-X-Name-Last: Azar
Title: Do people tip because of psychological or strategic motivations? An empirical analysis of restaurant tipping
Abstract:
One of the most interesting and central questions about tipping is why
people tip. The two major potential reasons are strategic behaviour aimed
to ensure good future service and social/psychological motivations. Data
on tipping behaviour suggests that there is no positive effect of
patronage frequency on the sensitivity of tips to service quality. This
implies that people tip only because of social and psychological
motivations, and not because of strategic reasons and future service
considerations.
Journal: Applied Economics
Pages: 3039-3044
Issue: 23
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964831
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964831
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Handle: RePEc:taf:applec:v:42:y:2010:i:23:p:3039-3044
Template-Type: ReDIF-Article 1.0
Author-Name: P. Hiebert
Author-X-Name-First: P.
Author-X-Name-Last: Hiebert
Author-Name: I. Vansteenkiste
Author-X-Name-First: I.
Author-X-Name-Last: Vansteenkiste
Title: International trade, technological shocks and spillovers in the labour market: a GVAR analysis of the US manufacturing sector
Abstract:
We empirically analyse the response of labour market related variables in
the US manufacturing sector to various shocks, notably to trade openness
and technology, as well as examining spillovers from industry-specific
labour market shocks. The econometric approach involves an application of
the recently developed Global Vector Autoregression methodology of Dees et
al. (2007) to 12 manufacturing industries over the period 1977-2003. The
framework allows us to analyse the response of a standard set of
labour-market related variables (employment, real compensation,
productivity and capital stock) to exogenous factors (a sector-specific
measure of trade openness, a common technology and oil price shock), along
with industry spillovers using specific measures of manufacturing-wide
variables for each sector. Generalized impulse responses indicate that
increased trade openness negatively affects real compensation, has
negligible employment effects and leads to higher labour productivity.
These impacts, however, are relatively weaker than those induced by
technology shocks, with the latter positively and significantly affecting
both real compensation and employment. There is also evidence of positive
spillovers across industries from sector-specific employment and
productivity shocks. Impact elasticities suggest strong intra-sectoral
linkages for employment and capital stock formation, contrasting with weak
linkages for what concerns real compensation and productivity.
Journal: Applied Economics
Pages: 3045-3066
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964864
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964864
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3045-3066
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Chiquiar
Author-X-Name-First: Daniel
Author-X-Name-Last: Chiquiar
Author-Name: Antonio Noriega
Author-X-Name-First: Antonio
Author-X-Name-Last: Noriega
Author-Name: Manuel Ramos-Francia
Author-X-Name-First: Manuel
Author-X-Name-Last: Ramos-Francia
Title: A time-series approach to test a change in inflation persistence: the Mexican experience
Abstract:
When a central bank commits credibly to a nonaccommodative monetary
policy, observed inflation should be a stationary process. In countries
where, for a variety of reasons, the determinants of inflation could lead
it to follow a nonstationary process, the adoption of a credible
disinflationary programme should therefore induce a fundamental change in
the stochastic process governing inflation and, in particular, should
diminish its persistence. This article studies the time-series properties
of both inflation and core inflation during the 1995-2006 period for the
Mexican economy, using recently developed techniques to detect a change in
the persistence of economic time series. Consistently with the adoption of
an inflation-targeting framework, the results suggest that inflation in
Mexico seems to have indeed switched from a nonstationary to a stationary
process around the end of year 2000 or the beginning of 2001.
Journal: Applied Economics
Pages: 3067-3075
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801982684
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801982684
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3067-3075
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Cuesta
Author-X-Name-First: Jose
Author-X-Name-Last: Cuesta
Title: How much of a threat to economic growth is a mature AIDS epidemic?
Abstract:
The article models the impact on economic growth of HIV/AIDS when the
epidemic is in a mature phase, in contrast with previous studies focused
on periods of expansion as it is typically the case in African countries.
Simulations for Honduras, the epicentre of the epidemic in Central
America, show that AIDS is not likely to threaten economic growth neither
through labour nor capital accumulation channels. Impacts are estimated
between 0.007 and 0.27% points of Gross Domestic Product (GDP) growth
annually for the period 2001 to 2010. Increasing spending on prevention,
higher public treatment subsidies and increasing treatment access will not
jeopardize economic growth prospects. Critical factors that slash economic
growth in Africa (such as human capital reductions and shifts in relative
skills) are not strong in Honduras.
Journal: Applied Economics
Pages: 3077-3089
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964849
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964849
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3077-3089
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Mohsin
Author-X-Name-First: Mohammed
Author-X-Name-Last: Mohsin
Title: The dynamic effects of tax policies in a small open economy
Abstract:
We develop an intertemporal optimizing model of a small open economy with
both durable and nondurable consumption to address the implications of
alternative tax policies. An increase in lump sum taxes reduces the steady
state level of consumption and improves the stock of foreign bonds.
Consistent with empirical evidence, durable consumption exhibits initial
excess volatility. Though an increase in the tax on durables increases the
demand for nondurables and improves the bond holdings in the steady state,
an increase in the tax on nondurables has insignificant effects on the
stock of foreign bonds and the consumption of durables. Using quarterly
data from the UK and estimating generalized impulse response functions we
find empirical support. We also calibrate the welfare implications of
different tax policies.
Journal: Applied Economics
Pages: 3091-3104
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964856
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964856
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3091-3104
Template-Type: ReDIF-Article 1.0
Author-Name: David Zimmer
Author-X-Name-First: David
Author-X-Name-Last: Zimmer
Title: The effect of double coverage on health care utilization of children
Abstract:
Double coverage refers to a situation in which a person is covered by
more than one health plan. In a family in which the husband and wife are
both offered employer-provided insurances, it is possible for one or more
family members to be double covered. This article is the first to examine
double coverage of children and quantify the effects of double coverage on
health care utilization for any population. Results show that double
coverage does not affect the frequency at which children consume medical
services, but rather double coverage leads children to consume more
expensive forms of health care.
Journal: Applied Economics
Pages: 3105-3117
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964898
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964898
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3105-3117
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Waldkirch
Author-X-Name-First: Andreas
Author-X-Name-Last: Waldkirch
Title: The structure of multinational activity: evidence from Germany
Abstract:
Recent empirical studies of the determinants of multinational activity
across countries have found overwhelming support for a horizontal rather
than a vertical model of Foreign Direct Investment (FDI). The majority of
these studies use data either originating in or targeted at the US. This
article presents evidence from a dataset of German inward and outward FDI.
The dataset is similar in scope to the widely used US Bureau of Economic
Analysis data, making the results comparable to those from previous
studies. In addition, a new empirical specification is employed that
avoids some of the problems that have plagued these studies. The results
provide little indication of vertical multinationals. FDI happens largely
between similarly endowed countries. Multinational firms originate in
skilled-labour abundant countries, although the evidence is mixed on
whether they are also small. A novel result is that German firms invest
disproportionately in other European countries, while the reverse is not
true.
Journal: Applied Economics
Pages: 3119-3133
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801964872
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801964872
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3119-3133
Template-Type: ReDIF-Article 1.0
Author-Name: Xuan-Vinh Vo
Author-X-Name-First: Xuan-Vinh
Author-X-Name-Last: Vo
Title: Net private capital flows and economic growth-the case of emerging Asian economies
Abstract:
This article makes an exploratory empirical investigation into the
relationship between net private capital flows and economic growth using a
panel dataset from emerging Asian countries, namely South Korea,
Indonesia, Malaysia, Thailand and the Philippines, over the period
1980-2001. Overall, this article indicates that net private capital helps
to promote economic growth for the countries in the sample. In addition,
this article also supports the view that net private capital flows will
better contribute to economic growth under a sound policy and economic
environment. This article also seeks to improve the estimation results by
controlling for reverse causality as an econometric method that can
control, for reverse causality is very important to examining the
relationship between net private capital flows and economic growth. To
tackle this issue, this article employs the Generalized Method of Moments
(GMM) estimation technique, which is an econometric technique that can
handle the reverse causality using the lagged explanatory variables as
instruments.
Journal: Applied Economics
Pages: 3135-3146
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801982676
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801982676
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3135-3146
Template-Type: ReDIF-Article 1.0
Author-Name: Abid Burki
Author-X-Name-First: Abid
Author-X-Name-Last: Burki
Author-Name: G. S. K. Niazi
Author-X-Name-First: G. S. K.
Author-X-Name-Last: Niazi
Title: Impact of financial reforms on efficiency of state-owned, private and foreign banks in Pakistan
Abstract:
This article uses a unique bank level data from 1991 to 2000 and
evaluates how financial reforms affect banking efficiency of domestic and
foreign banks in Pakistan. The results suggest that banking efficiency
falls during initial reform period when banks adjust to enhanced
competition but increases in more advanced stages of reform. While in
general foreign and private banks show superior efficiency and factor
productivity than do state-owned banks, the relative performance of
foreign banks worsens after the consolidation stage of the financial
reforms is over. We show the importance of link between bank size, asset
quality and bank branches with efficiency indexes and also note that every
10% increase in share of nonperforming to total loans decreases banking
efficiency by 6 to 10%.
Journal: Applied Economics
Pages: 3147-3160
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112315
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112315
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3147-3160
Template-Type: ReDIF-Article 1.0
Author-Name: Chuen-Ping Chang
Author-X-Name-First: Chuen-Ping
Author-X-Name-Last: Chang
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: Bank liquidity providing in a real synergy management under a cap-based valuation
Abstract:
Since banks often lend via commitments, their lending and deposit-taking
may be two manifestations of one primitive function: the provision of
liquidity on demand. We explore this function under a cap-based valuation.
We find that (i) the strike price of the cap-based valuation increases the
bank's liquid asset holdings by increasing its loan rate and loan
commitment rate (with the strategic rate-adjustment complements) and
decreases the bank's external finance need by increasing its deposit rate,
when the bank realizes a less risky state of the world and (ii) the number
of caplet days decreases the bank's liquid asset holdings by decreasing
its loan rate and loan commitment rate (with the strategic rate-adjustment
complements and the strategic timing substitutes) and increases the bank's
external finance need by decreasing its deposit rate (with the strategic
timing substitutes), when the bank realizes a more risky state. Our
findings provide alternative explanations concerning the bank's liquidity
function under the cap-based optimization.
Journal: Applied Economics
Pages: 3161-3173
Issue: 24
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360088
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360088
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Handle: RePEc:taf:applec:v:42:y:2010:i:24:p:3161-3173
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Fisher
Author-X-Name-First: Jonathan
Author-X-Name-Last: Fisher
Author-Name: Angela Lyons
Author-X-Name-First: Angela
Author-X-Name-Last: Lyons
Title: Information and credit access: using bankruptcy as a signal
Abstract:
Legally, a bankruptcy flag can appear on an individual's credit report
for up to 10 years after the filing. The flag affects an individual's
credit score, and in turn, an individual's access to credit. In this
article, we investigate how the bankruptcy flag affects access to credit
along three dimensions-loan acceptance, the price of the loan as is
determined by the interest rate, and the amount of credit the household
receives. Using the Panel Study of Income Dynamics and the Survey of
Consumer Finances, we estimate a series of two-stage models corrected for
sample selection and adjusted to account for the household's level of
creditworthiness. We find that the bankruptcy flag increases the
probability of being denied access to a loan. The flag also increases
interest rates for unsecured loans and lowers the credit limits available
to households. The findings have important implications with respect to
current bankruptcy code and the impact that information, such as the
bankruptcy flag, can have on the efficiency of the credit markets.
Journal: Applied Economics
Pages: 3175-3193
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112331
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112331
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3175-3193
Template-Type: ReDIF-Article 1.0
Author-Name: Evis Sinani
Author-X-Name-First: Evis
Author-X-Name-Last: Sinani
Author-Name: Bersant Hobdari
Author-X-Name-First: Bersant
Author-X-Name-Last: Hobdari
Title: Export market participation with sunk costs and firm heterogeneity
Abstract:
In this article we investigate the importance of sunk costs, firm
characteristics and spillovers from nearby exporters on a firm's decision
to participate in exporting. The empirical analysis involves the
estimation of a nonstructural, discrete choice, dynamic model with firm
heterogeneity. By using panel data for Estonian companies from 1994 to
1999 we find that: (i) both sunk costs and observable firm characteristics
are important determinants of export market participation; (ii) previous
history matters, in that, if a firm has been exporting the previous period
or the period before, it significantly increases the likelihood of the
firm exporting in the current period; (iii) larger firms with high capital
intensity and foreign ownership are more likely to be exporters; (iv)
operating in an export-oriented industry increases a firm's likelihood of
exporting.
Journal: Applied Economics
Pages: 3195-3207
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112372
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112372
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3195-3207
Template-Type: ReDIF-Article 1.0
Author-Name: Bas Jacobs
Author-X-Name-First: Bas
Author-X-Name-Last: Jacobs
Author-Name: Ruud de Mooij
Author-X-Name-First: Ruud
Author-X-Name-Last: de Mooij
Author-Name: Kees Folmer
Author-X-Name-First: Kees
Author-X-Name-Last: Folmer
Title: Flat income taxation, redistribution and labour market performance
Abstract:
A flat tax rate on labour income has gained popularity in European
countries. This article assesses the attractiveness of such a flat tax in
achieving redistributive objectives with the smallest distortions to
employment. We do so by using a detailed applied general equilibrium model
for the Netherlands. The model is empirically grounded in the data and
encompasses decisions on hours worked, labour force participation, skill
formation, wage bargaining between unions and firms and a wide variety of
institutional details. The simulations suggest that the replacement of the
current tax system in the Netherlands by a flat rate will harm labour
market performance if aggregate income inequality is contained. Only flat
tax reforms that reduce redistribution will raise employment. This finding
bolsters the notions from optimal tax literature regarding the
equity-efficiency trade off and the superiority of nonlinear taxes to
obtain redistributive goals in an efficient way.
Journal: Applied Economics
Pages: 3209-3220
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112356
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112356
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3209-3220
Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Labour productivity trends in Australian manufacturing: some time series properties
Abstract:
Labour productivity plays a significant role in economic growth, labour
demand and employment situation of a particular economy. In this light,
the presence of a structural break in productivity, and its unit root
property, has important consequences for the overall economy and in major
sectors such as manufacturing. In this article, using some recently
developed unit root tests, we examine: (i) the null hypothesis of a unit
root in the log-level of labour productivity for 38 manufacturing
subdivisions against the alternative of trend stationarity over a
three-decade period; and (ii) the presence of a structural break in the
series, and whether the break has had a permanent or a transitory effect
on manufacturing labour productivity. Our main finding is that shocks to
labour productivity have had a transitory effect, implying that policies
are likely to have only short-term effects.
Journal: Applied Economics
Pages: 3221-3230
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840801982692
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840801982692
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3221-3230
Template-Type: ReDIF-Article 1.0
Author-Name: John McDonald
Author-X-Name-First: John
Author-X-Name-Last: McDonald
Title: Efficiency in the Domesday economy, 1086: evidence from Wiltshire estates
Abstract:
It may surprise some readers that frontier methods such as Data
Envelopment Analysis (DEA) can be used to assess the productive efficiency
of the estates of eleventh century England. This is possible because in
1086, William the Conqueror carried out a comprehensive survey (the
Domesday Survey) of lands he invaded 20 years earlier. The survey provides
high-quality data on the inputs and outputs of most manors in England. A
previous analysis of the data for Essex estates indicated that the average
efficiency of the Domesday agricultural economy was comparable to, if not
higher than that for more modern economies, that some tenants-in-chief
displayed significantly more entrepreneurial flair than others, and that
the geographical location, the size of the estate and the arable/livestock
mix all significantly affected estate efficiency. In this article,
analysis of a second Domesday county, Wiltshire, confirms the general
results for Essex, but indicates some differences in the factors affecting
estate efficiency.
Journal: Applied Economics
Pages: 3231-3240
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112430
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112430
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3231-3240
Template-Type: ReDIF-Article 1.0
Author-Name: Peijie Wang
Author-X-Name-First: Peijie
Author-X-Name-Last: Wang
Title: An examination of business cycle features in UK Sectoral Output
Abstract:
This article examines business cycle features of UK Gross Domestic
Product (GDP) sectors with regard to trends, cycles and growth. The
empirical study adopts the Kalman filter to decompose these GDP sectors
into trend and cycle components. The general model of this study
encompasses a number of alternative specifications about trend growth,
therefore accommodating diverse views on growth. There is reasonable
support in the results for a mean-reverting stochastic growth model for
the UK economy. The characteristics in trends and cycles of UK GDP sectors
are discussed, focusing on their similarities and differences around
business cycles.
Journal: Applied Economics
Pages: 3241-3252
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802599818
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599818
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3241-3252
Template-Type: ReDIF-Article 1.0
Author-Name: Hyun Joung Jin
Author-X-Name-First: Hyun Joung
Author-X-Name-Last: Jin
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Title: An analysis of multiple structural breaks in US relative farm prices
Abstract:
The movement of farm prices relative to other commodity prices is
analysed for the period 1913:01 to 2003:12, investigating the number and
time of structural breaks and discussing likely causes of structural
breaks in the relative farm prices. Bai and Perron's (1998, 2003) multiple
structural change test with a dynamic programming algorithm is used. This
test makes it possible to have an efficient computation of the estimates
of the break points as global minimizers of the sum of squared residuals.
We find six structural breaks when we consider only the mean process and
two breaks when we consider the mean and autoregressive processes.
Possible causes for these breaks are discussed.
Journal: Applied Economics
Pages: 3253-3265
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802600368
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600368
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3253-3265
Template-Type: ReDIF-Article 1.0
Author-Name: Carluccio Bianchi
Author-X-Name-First: Carluccio
Author-X-Name-Last: Bianchi
Author-Name: Alessandro Carta
Author-X-Name-First: Alessandro
Author-X-Name-Last: Carta
Author-Name: Dean Fantazzini
Author-X-Name-First: Dean
Author-X-Name-Last: Fantazzini
Author-Name: Maria Elena De Giuli
Author-X-Name-First: Maria Elena
Author-X-Name-Last: De Giuli
Author-Name: Mario Maggi
Author-X-Name-First: Mario
Author-X-Name-Last: Maggi
Title: A copula-VAR-X approach for industrial production modelling and forecasting
Abstract:
World economies, and especially European ones, have become strongly
interconnected in the last decade and a joint modelling is required. We
propose here the use of copulae to build flexible multivariate
distributions, since they allow for a rich dependence structure and more
flexible marginal distributions that better fit the features of empirical
data, such as leptokurtosis. We use our approach to forecast industrial
production series in the core European Monetary Union (EMU) countries and
we provide evidence that the copula-Vector Autoregression (VAR) model
outperforms or at worst compares similarly to normal VAR models, keeping
the same computational tractability of the latter approach.
Journal: Applied Economics
Pages: 3267-3277
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112349
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112349
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3267-3277
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Benczur
Author-X-Name-First: Peter
Author-X-Name-Last: Benczur
Author-Name: Attila Ratfai
Author-X-Name-First: Attila
Author-X-Name-Last: Ratfai
Title: Economic fluctuations in Central and Eastern Europe: the facts
Abstract:
This article provides a detailed empirical analysis of quarterly
frequency dynamics in macroeconomic aggregates in 12 countries of Central
and Eastern Europe (CEE). It shows that business fluctuations in CEE
countries are, in general, more pronounced than in developed ones, and are
of similar size as in other emerging market economies. Private consumption
is particularly volatile. Relative to major developed economies government
spending is dominantly procyclical, and net exports are strongly
countercyclical. The most frequent country outliers are the high inflation
countries of Bulgaria, Romania and Russia, especially in labour market,
price and exchange rate variables. Excluding these countries from the
sample makes many of the observed patterns in cyclical dynamics more
homogenous, and broadly similar to ones established in developed
economies.
Journal: Applied Economics
Pages: 3279-3292
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112380
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112380
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3279-3292
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Modelling money demand for a panel of eight transitional economies
Abstract:
In this article, we estimate money demand functions for a panel of eight
transitional economies, using quarterly data for the period 1995:01 1995
to 2005:03. We find that real M1 and real M2 and their determinants,
namely real income and short-term domestic interest rate, are
cointegrated, both for individual countries as well as for the panel.
Long-run elasticities suggest that consistent with theory, real income
positively and nominal interest rate negatively impact real money demand.
Our test for panel Granger causality suggests short-run bidirectional
causality between M1 and M2 and their determinants. Finally, our tests for
stability of the money demand functions reveal more cases of unstable
money demand functions when M2 is used as a proxy for money demand.
Journal: Applied Economics
Pages: 3293-3305
Issue: 25
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112323
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112323
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Handle: RePEc:taf:applec:v:42:y:2010:i:25:p:3293-3305
Template-Type: ReDIF-Article 1.0
Author-Name: Sahar Bahmani
Author-X-Name-First: Sahar
Author-X-Name-Last: Bahmani
Author-Name: Ali Kutan
Author-X-Name-First: Ali
Author-X-Name-Last: Kutan
Title: How stable is the demand for money in emerging economies?
Abstract:
One of the key elements of implementing the monetary policy is stability
of the demand for money. The literature includes a large number of studies
that have tested the stability of the money demand in developed as well as
less-developed countries but not in emerging economies of Eastern Europe.
As market-based data becomes available from these countries, there is an
urgency to test old theories for these modern market-oriented economies.
In this article we consider the experiences of Armenia, Bulgaria, the
Czech Republic, Hungary, Poland, Russia and the Slovak Republic. Using the
bounds testing approach to error-correction modelling and cointegration,
we show that money demand is stable in these countries.
Journal: Applied Economics
Pages: 3307-3318
Issue: 26
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112406
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112406
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Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3307-3318
Template-Type: ReDIF-Article 1.0
Author-Name: Augustin de Coulon
Author-X-Name-First: Augustin
Author-X-Name-Last: de Coulon
Author-Name: Francois-Charles Wolff
Author-X-Name-First: Francois-Charles
Author-X-Name-Last: Wolff
Title: Location intentions of immigrants at retirement: stay/return or go 'back and forth'?
Abstract:
This article analyses the intentions of immigrants regarding their
residential choice after retirement. Three options are investigated: stay
in the host country, go back to the origin country and adopt a mobile
strategy, sharing time between the host and the origin country (defined as
'back and forth'). For this purpose, we analyse a cross section of
non-French nationals aged above 45 who are not yet retired. The impacts of
several potential determinants of such intentions are investigated, with
particular focus on the effect of the actual location of the respondents'
children. The estimation is conducted using a multinomial Logit model.
Instrumental variable technique is used to address the issue of endogenous
children's location with respect to parents' location intention. Results
suggest that the immigrants prefer to return rather than stay in the host
country when their children live in the country of origin. However,
children's location does not seem to affect the 'back and forth' strategy
with respect to staying in the host country.
Journal: Applied Economics
Pages: 3319-3333
Issue: 26
Volume: 42
Year: 2010
X-DOI: 10.1080/00036846.2010.482518
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.482518
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Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3319-3333
Template-Type: ReDIF-Article 1.0
Author-Name: Duncan McVicar
Author-X-Name-First: Duncan
Author-X-Name-Last: McVicar
Author-Name: Michael Anyadike-Danes
Author-X-Name-First: Michael
Author-X-Name-Last: Anyadike-Danes
Title: Panel estimates of the determinants of British regional male incapacity benefits rolls 1998-2006
Abstract:
This article explores the determinants of the proportion of the working
age male population claiming Incapacity Benefits (IB), across the 11
British Government Office Regions, for the period 1998 to 2006. Three
different approaches are adopted to modelling register dynamics: first,
treating IB stocks as if they were trend-stationary, albeit with
persistence, and estimating reduced form models for their logs; second,
treating IB stocks as if they were nonstationary and examining their
long-run determinants plus short-run equilibrium reversion properties;
third, focusing on the determinants of gross inflows and outflows that
together drive IB stocks. Given the nature of the data, no approach is
ideal yet the models provide reasonably robust evidence that labour market
changes-specifically falling unemployment rates and rising real
earnings-have contributed to falling male IB stocks over the period.
Journal: Applied Economics
Pages: 3335-3349
Issue: 26
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112414
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112414
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Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3335-3349
Template-Type: ReDIF-Article 1.0
Author-Name: Niels Hermes
Author-X-Name-First: Niels
Author-X-Name-Last: Hermes
Author-Name: Vu Thi Hong Nhung
Author-X-Name-First: Vu Thi Hong
Author-X-Name-Last: Nhung
Title: The impact of financial liberalization on bank efficiency: evidence from Latin America and Asia
Abstract:
This article investigates the impact of financial liberalization on bank
efficiency, using data for a sample of over 4000 bank-year observations
from ten emerging economies for the period 1991-2000. We use Data
Envelopment Analysis (DEA) to calculate bank efficiency at the individual
bank level. Bank efficiency measures are then aggregated at the country
level to investigate the relationship between financial liberalization and
bank efficiency, using a panel least square fixed-effects model. Overall,
we find strong support for the positive impact of financial liberalization
programmes on bank efficiency.
Journal: Applied Economics
Pages: 3351-3365
Issue: 26
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112448
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112448
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Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3351-3365
Template-Type: ReDIF-Article 1.0
Author-Name: J. M. Nunley
Author-X-Name-First: J. M.
Author-X-Name-Last: Nunley
Title: Inflation and other aggregate determinants of the trend in US divorce rates since the 1960s
Abstract:
This article extends empirical research on the determinants of divorce in
two ways. First, I examine the effect of inflation on divorce. Second, the
use of a structural time-series modelling approach attributes
unobservables and omitted variables to an unobserved component, which
allows for the model's parameters to be estimated consistently. Inflation
is statistically significant, positive and persistent. I show that the
effects of inflation are robust to the inclusion of additional explanatory
variables and various trend specifications. The long-run implications of
inflation are also substantial. I conclude that price stability has the
potential to reduce divorce rates.
Journal: Applied Economics
Pages: 3367-3381
Issue: 26
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112489
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112489
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Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3367-3381
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Naticchioni
Author-X-Name-First: Paolo
Author-X-Name-Last: Naticchioni
Author-Name: Andrea Ricci
Author-X-Name-First: Andrea
Author-X-Name-Last: Ricci
Author-Name: Emiliano Rustichelli
Author-X-Name-First: Emiliano
Author-X-Name-Last: Rustichelli
Title: Far away from a skill-biased change: falling educational wage premia in Italy
Abstract:
In this article we apply quantile regressions to investigate the
evolution of Educational Wage Premia (EWP) in Italy from 1993 to 2004.
Using the Survey of the Household Income and Wealth (SHIW, Bank of Italy)
and different classifications for educational attainments, we show that,
in the private sector, EWP have generally decreased over time, considering
both continuous and categorical specifications for education, at all
quantiles of the wage distribution. Different patterns are observed in the
public sector, where EWP remain basically stable over time. A number of
robustness checks and various econometric specifications are also applied
in order to address sample selection issues. Our findings provide
additional evidence in favour of the thesis that the increasing patterns
in inequality and EWP, and the related interpretations concerning
skill-biased changes, are much less pronounced in continental Europe than
in Anglo-Saxon countries.
Journal: Applied Economics
Pages: 3383-3400
Issue: 26
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112455
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112455
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Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3383-3400
Template-Type: ReDIF-Article 1.0
Author-Name: Noriko Inakura
Author-X-Name-First: Noriko
Author-X-Name-Last: Inakura
Author-Name: Satoshi Shimizutani
Author-X-Name-First: Satoshi
Author-X-Name-Last: Shimizutani
Title: Deposit insurance and depositor discipline: direct evidence on bank switching behaviour in Japan
Abstract:
As Japan's financial system becomes more market oriented, depositor
discipline is playing a larger role in the monitoring of banks. Matching
household survey data with banks' financial data, we examine households'
response to bank risk and different deposit insurance schemes. We find
that bank switching in response to risk increased between 1996 and 2001
and households' choice of bank adequately reflects banks' financial
health. We also examine the determinants of households' knowledge of the
deposit insurance scheme and how this affects switching behaviour. The
results suggest that depositor discipline works and could play an
important supplementary role in bank monitoring.
Journal: Applied Economics
Pages: 3401-3415
Issue: 26
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112398
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112398
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Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3401-3415
Template-Type: ReDIF-Article 1.0
Author-Name: Ku-Hsieh (Michael) Chen
Author-X-Name-First: Ku-Hsieh
Author-X-Name-Last: (Michael) Chen
Author-Name: Ho-Ming Hsiao
Author-X-Name-First: Ho-Ming
Author-X-Name-Last: Hsiao
Author-Name: Hao-Yen Yang
Author-X-Name-First: Hao-Yen
Author-X-Name-Last: Yang
Title: Spillover effects of innovation: Taiwanese evidence
Abstract:
This article evaluates spillover effects of innovation of Taiwan's
industries by using the input-output (IO) analysis framework. On the basis
of IO tables for the years 1981, 1986 1991 and 1996, the structure,
magnitude and ranking list of the spillover effect of innovation are
revealed. Additionally, several findings are also achieved from the
empirical results. First, the spillover effect of process innovation is
stronger and about more than twice the spillover effect of product
innovation in Taiwan. Furthermore, Taiwan's industries manifest a
dispersive technological distribution structure and the spillover effect
of the process innovation is more dispersive than that of product
innovation. Moreover, Taiwanese industries are rather dependent on foreign
technologies, particularly in terms of product innovation.
Journal: Applied Economics
Pages: 3417-3437
Issue: 26
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112422
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112422
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Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3417-3437
Template-Type: ReDIF-Article 1.0
Author-Name: P. S. Sephton
Author-X-Name-First: P. S.
Author-X-Name-Last: Sephton
Title: Unit roots and purchasing power parity: another kick at the can
Abstract:
Lopez et al. (2005) demonstrated that single-equation unit-root tests
cannot provide conclusive evidence of whether real exchange rates are
stationary because inference depends critically on the lag-lengths used to
construct the test statistics, a result reinforced by a recent work by
Sweeney (2006). The purpose of this article is to revisit the issue, first
demonstrating the necessary conditions under which this approach of
testing for Purchasing Power Parity (PPP) is appropriate.
Journal: Applied Economics
Pages: 3439-3453
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112513
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112513
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3439-3453
Template-Type: ReDIF-Article 1.0
Author-Name: Carlo Altavilla
Author-X-Name-First: Carlo
Author-X-Name-Last: Altavilla
Author-Name: Paul De Grauwe
Author-X-Name-First: Paul
Author-X-Name-Last: De Grauwe
Title: Forecasting and combining competing models of exchange rate determination
Abstract:
This article investigates the out-of-sample forecast performance of a set
of competing models of exchange rate determination. We compare standard
linear models with models that characterize the relationship between
exchange rate and the underlying fundamentals by nonlinear dynamics.
Linear models tend to outperform at short forecast horizons especially
when deviations from long-term equilibrium are small. In contrast,
nonlinear models with more elaborate mean-reverting components dominate at
longer horizons especially when deviations from long-term equilibrium are
large. The results also suggest that combining different forecasting
procedures generally produces more accurate forecasts than can be attained
from a single model.
Journal: Applied Economics
Pages: 3455-3480
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112505
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112505
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3455-3480
Template-Type: ReDIF-Article 1.0
Author-Name: Mina Baliamoune-Lutz
Author-X-Name-First: Mina
Author-X-Name-Last: Baliamoune-Lutz
Title: Black and official exchange rates in Morocco: an analysis of their long-run behaviour and short-run dynamics (1974-1992)
Abstract:
Using Vector Error-Correction (VEC) model estimation on monthly data from
Morocco for the period January 1974 to December 1992, this article tests
the hypothesis that there is a long-run stable relationship between the
official and the black-market exchange rates for US dollars. We also
examine the short-run dynamics in the relationship between the two
markets. The econometric results indicate that the two exchange rates are
cointegrated. Furthermore, we reject weak exogeneity in the case of the
official exchange rate, but fail to reject it in the case of the
black-market rate. Granger causality tests show that the black-market rate
causes the official exchange rate. The results seem to support the
efficiency hypothesis, suggesting that participants in the black-market
are able to anticipate changes in the official exchange rate. The findings
also suggest that Morocco's decision (in January 1993) to introduce only
current account convertibility and keep controls on capital accounts was
wise.
Journal: Applied Economics
Pages: 3481-3490
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112463
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112463
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3481-3490
Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Chi Cheng
Author-X-Name-First: Jen-Chi
Author-X-Name-Last: Cheng
Author-Name: Larry Taylor
Author-X-Name-First: Larry
Author-X-Name-Last: Taylor
Author-Name: Wenlong Weng
Author-X-Name-First: Wenlong
Author-X-Name-Last: Weng
Title: The links between international parity conditions and Granger causality: a study of exchange rates and prices
Abstract:
This article investigates Granger causality between exchange rates and
prices for the US and four of its trading partners: Canada, Germany, Japan
and the UK. We emphasize the distinction between direct and indirect
Granger causality: exchange rates directly cause prices if movements in
exchange rates lead movement in prices, and exchange rates indirectly
cause prices if deviations from the Purchasing Power Parity (PPP)
condition can help forecast movement in prices. But only by including the
interest-rate differential in our error correction model do we obtain
results that align with economic theory. The economic theory of PPP
suggests that exchange rates and prices are cointegrated, with exchange
rates moving proportionally to prices in the long run. In general, we find
either direct or indirect feedback mechanisms between exchange rates and
prices.
Journal: Applied Economics
Pages: 3491-3501
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112521
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112521
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3491-3501
Template-Type: ReDIF-Article 1.0
Author-Name: Raul Serrano
Author-X-Name-First: Raul
Author-X-Name-Last: Serrano
Author-Name: Vicente Pinilla
Author-X-Name-First: Vicente
Author-X-Name-Last: Pinilla
Title: Causes of world trade growth in agricultural and food products, 1951-2000: a demand function approach
Abstract:
The objective of the present study is to analyse the causes of the growth
of international agricultural and food trade in volume terms from 1951 to
2000. The results suggest that income growth has been the principal reason
for this expansion, while exchange rate stability and the real price of
agricultural products played only a minor role. Multilateral trade
liberalization and trade costs, given their long-term stability, are not
elements that could have stimulated their growth. Finally, the intensive
liberalization of trade which took place in various economic regions,
especially in Europe, became a key factor in promoting agricultural trade
among the countries participating in regional trade agreements. The study
results also indicate that the determinants of trade growth for these
goods were different to those for other goods and other periods.
Journal: Applied Economics
Pages: 3503-3518
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802167368
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167368
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3503-3518
Template-Type: ReDIF-Article 1.0
Author-Name: Truong Dong Loc
Author-X-Name-First: Truong
Author-X-Name-Last: Dong Loc
Author-Name: Ger Lanjouw
Author-X-Name-First: Ger
Author-X-Name-Last: Lanjouw
Author-Name: Robert Lensink
Author-X-Name-First: Robert
Author-X-Name-Last: Lensink
Title: Stock-market efficiency in thin-trading markets: the case of the Vietnamese stock market
Abstract:
This article reviews developments in the Stock Trading Centre (STC) in Ho
Chi Minh City, Vietnam, the main stock market in the country, since its
start in 2000. It presents information about developments in the number of
stocks traded, trading activity and stock-price developments. This article
focuses on the question whether the market is weak-form efficient. An
important element of the investigation concerns the possible bias of the
results caused by the thin trading that characterizes the STC.
Stock-market returns are corrected for this. The main conclusion is that
the STC is not efficient in the weak form.
Journal: Applied Economics
Pages: 3519-3532
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802167350
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167350
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3519-3532
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Morales
Author-X-Name-First: Marco
Author-X-Name-Last: Morales
Title: The real yield curve and macroeconomic factors in the Chilean economy
Abstract:
This article estimates a dynamic model for the yield curve incorporating
latent and macro factors to represent the term structure of the real
interest rates. The representation of the yield curve is based on the
popular latent factor model of Nelson and Siegel (1987), but under a
dynamic interpretation due to Diebold and Li (2006). After assuming the
data generating process for the latent and macro factors can be
represented by a VAR process, the yields-macro model can be regarded as a
state-space representation and estimated by a Kalman Filter approach or by
using a simplified two-step procedure proposed by Diebold and Li (2006).
This article follows the simple two-step method and makes a comparison
check with the Kalman Filter estimation, concluding that the basic
intuition of the results is not significantly affected by the use of the
simplified approach. Estimation results give support to the dynamic
interaction between yield curve latent factors and macroeconomic
variables. In particular, monetary policy implemented by the Central Bank
seems to be influenced by the market players given the significant
response of the monetary policy rate to the yield curve factors as shown
by impulse-response functions. In addition, the level and slope of the
yield curve seems to be responsive to real activity and monetary policy
shocks, issues that should be considered by monetary authorities given the
dependency of monetary policy effectiveness on the shape of the yield
curve.
Journal: Applied Economics
Pages: 3533-3545
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802129806
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802129806
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3533-3545
Template-Type: ReDIF-Article 1.0
Author-Name: A. Assaf
Author-X-Name-First: A.
Author-X-Name-Last: Assaf
Author-Name: K. M. Matawie
Author-X-Name-First: K. M.
Author-X-Name-Last: Matawie
Title: Improving the accuracy of DEA efficiency analysis: a bootstrap application to the health care foodservice industry
Abstract:
This article analyses the efficiency of health care foodservice
operations and its determinants using a Data Envelopment Analysis (DEA)
bootstrapping approach. The purpose of using the bootstrapping approach is
two-fold: first, to obtain the bias corrected estimates and the confidence
intervals of DEA-efficiency scores and second, to overcome the correlation
problem of DEA-efficiency scores and to provide consistent inferences in
explaining the determinants of health care foodservice efficiency. The
approach was implemented on a sample of 89 health care foodservice
operations. The results showed the presence of inefficiency in the sample,
with an average efficiency level of 72.6%. Further, the results from
analysing the determinants of health care foodservice operations provided
policy implication regarding the factors that might improve the efficiency
of health care foodservice operations.
Journal: Applied Economics
Pages: 3547-3558
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112497
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112497
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3547-3558
Template-Type: ReDIF-Article 1.0
Author-Name: H. Levent Korap
Author-X-Name-First: H.
Author-X-Name-Last: Levent Korap
Author-Name: Ozgur Aslan
Author-X-Name-First: Ozgur
Author-X-Name-Last: Aslan
Title: Re-examination of the long-run purchasing power parity: further evidence from Turkey
Abstract:
In this article, we re-examine the empirical validity of the Purchasing
Power Parity (PPP) theory for the Turkish economy. For this purpose, an
empirical model is constructed using some contemporaneous estimation
techniques such as multivariate co-integration and vector error correction
methodology. Our estimation results reveal that the PPP can strongly be
supported as a long-run stationary steady-state relationship for the
Turkish economy.
Journal: Applied Economics
Pages: 3559-3564
Issue: 27
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802129798
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802129798
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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3559-3564
Template-Type: ReDIF-Article 1.0
Author-Name: Nazmul Chaudhury
Author-X-Name-First: Nazmul
Author-X-Name-Last: Chaudhury
Author-Name: Dilip Parajuli
Author-X-Name-First: Dilip
Author-X-Name-Last: Parajuli
Title: Conditional cash transfers and female schooling: the impact of the female school stipend programme on public school enrolments in Punjab, Pakistan
Abstract:
Instead of mean-tested Conditional Cash Transfer (CCT) programmes, some
countries have implemented gender-targeted CCTs to explicitly address
intra-household disparities in human capital investments. This study
focuses on addressing the direct impact of a female school stipend
programme in Punjab, Pakistan - Did the intervention increase female
enrolment in public schools? To address this question, we draw upon data
from the provincial school censuses 2003 and 2005. We estimate the net
growth in female enrolments in grade 6-8 in stipend eligible schools.
Impact evaluation analysis, including difference-and-difference (DD),
triple differencing (DDD) and regression-discontinuity design (RDD),
indicate a modest but statistically significant impact of the
intervention. The preferred estimator derived from a combination of DDD
and RDD empirical strategies suggests that the average programme impact
between 2003 and 2005 was an increase of six female students per school in
terms of absolute change and an increase of 9% in female enrolment in
terms of relative change. A triangulation effort is also undertaken using
two rounds of a nationally representative household survey before and
after the intervention. Even though the surveys are not representative at
the sub-provincial level, the results corroborate evidence of the impact
using school census data.
Journal: Applied Economics
Pages: 3565-3583
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802167376
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167376
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3565-3583
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Alan Edwards
Author-X-Name-First: Jeffrey Alan
Author-X-Name-Last: Edwards
Author-Name: Ronald Gilbert
Author-X-Name-First: Ronald
Author-X-Name-Last: Gilbert
Author-Name: Juan Sherwell
Author-X-Name-First: Juan
Author-X-Name-Last: Sherwell
Title: Accounting for regional variance heterogeneity of growth
Abstract:
This article explores heterogeneous behaviour in the conditional variance
of growth. We find that regional effects account for a good part of this
behaviour when modelled alone; however, regional effects themselves have
no particular meaning. To this end, we try to empirically account for the
regional effects using a large set of economic, political and demographic
variables. Our results indicate that countries with past high levels of
both investment and inflation cause growth to be less volatile today.
Countries that have a greater number of changes in heads of government
tend to experience lower growth volatility except in parliamentary
democracies where the relationship reverses. The greater the number of
effective parties the lower the volatility for all regime types. More
strikes have no effect on volatility except for presidential democracies
where volatility actually increases, while more open economies that share
presidential and legislative powers also have more volatile growth rates.
Journal: Applied Economics
Pages: 3585-3596
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802260924
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260924
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3585-3596
Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Lopez-Pueyo
Author-X-Name-First: Carmen
Author-X-Name-Last: Lopez-Pueyo
Author-Name: Jaime Sanau
Author-X-Name-First: Jaime
Author-X-Name-Last: Sanau
Title: How different are the production functions of the European manufacturing sectors? New empirical evidence
Abstract:
The neo-classical model of international trade assumes that the Total
Factor Productivity (TFP) of a sector is common across countries, that
returns to scale are constant and that the sectoral production of the
countries differs by virtue of the factor endowments. In this article, we
consider whether the differences in production can also be explained by
the economies of scale in the national industries and by the technological
differences across countries. To test this hypothesis, we estimate three
models proposed in Harrigan (1999) with data for eight European Union (EU)
Member States covering the period 1978 to 1992 and analyse how the TFP
changes from country to country.
Journal: Applied Economics
Pages: 3597-3605
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802260965
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260965
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3597-3605
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Garcia
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Garcia
Author-Name: Jose-Alberto Molina
Author-X-Name-First: Jose-Alberto
Author-X-Name-Last: Molina
Author-Name: Maria Navarro
Author-X-Name-First: Maria
Author-X-Name-Last: Navarro
Title: The effects of education on spouses' satisfaction in Europe
Abstract:
This article identifies the effects of both own and spouses' education
levels on individual economic satisfaction for European households. To
that end, it estimates several specifications based on the family
collective approach, for each of the 14 EU countries, by using the eight
waves of the European Community Household Panel, 1994-2001. After
demonstrating that the IV Hausman-Taylor procedure is the selected
estimation method in the majority of cases, the empirical results show
that male and female income satisfaction significantly increases when the
husband achieves higher education qualifications in the majority of
European countries. However, the positive effect of the wife's higher
education on female income satisfaction only appears in a very limited
number of countries. Additionally, increases in individual wage and
nonwage incomes generally lead to higher satisfaction levels.
Journal: Applied Economics
Pages: 3607-3618
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314572
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314572
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3607-3618
Template-Type: ReDIF-Article 1.0
Author-Name: Arif Sultan
Author-X-Name-First: Arif
Author-X-Name-Last: Sultan
Title: A model of the used car market with lemons and leasing
Abstract:
This article extends Kim's (1985) model of the used car market with
asymmetric information to examine the possible impacts of leasing and
Certified Pre-Owned (CPO) programs on the average quality of traded used
cars in the market. The author assumed that a consumer can buy or lease a
new car, or he/she can buy a used or a CPO car. While, like Kim (1985),
the author assumed that the quality of a car depends on the maintenance
level, the maintenance level in this model is chosen when a car is still a
'new' car, i.e. after the warranty ends. The model implied that the
average quality of traded used cars can be either higher or lower than the
average quality of nontraded used cars. The study also found that leasing
and CPO have substantially improved the information mechanism between
buyers and sellers of used cars, which, in turn, has helped reduce adverse
selection and improved the average quality of traded used cars in the
market.
Journal: Applied Economics
Pages: 3619-3627
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314556
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314556
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3619-3627
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon
Author-X-Name-First: Robert
Author-X-Name-Last: Dixon
Author-Name: David Shepherd
Author-X-Name-First: David
Author-X-Name-Last: Shepherd
Title: Models of labour services and estimates of total factor productivity
Abstract:
This article examines the manner in which labour services are modelled in
the aggregate production function, concentrating on the relationship
between numbers employed and average hours worked. It argues that numbers
employed and hours worked are not perfect substitutes and that
conventional estimates of total factor productivity which, by using total
hours worked as the measure of labour services, assume they are perfect
substitutes, will be biased when there are marked changes in average hours
worked. The relevance of the theoretical argument is illustrated using
data for the United States and the United Kingdom.
Journal: Applied Economics
Pages: 3629-3634
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314549
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314549
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Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Buch
Author-X-Name-First: Claudia
Author-X-Name-Last: Buch
Author-Name: Serkan Yener
Author-X-Name-First: Serkan
Author-X-Name-Last: Yener
Title: Consumption volatility and financial openness
Abstract:
Economic theory predicts that the integration of financial markets lowers
the volatility of consumption. In this article, we study long-term trends
in the consumption volatility of the G7 countries. Using different
measures of financial openness, we find evidence that greater financial
openness has been associated with lower consumption volatility. However,
volatility of consumption relative to output has not declined.
Journal: Applied Economics
Pages: 3635-3649
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802260916
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802260916
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3635-3649
Template-Type: ReDIF-Article 1.0
Author-Name: Rinaldo Brau
Author-X-Name-First: Rinaldo
Author-X-Name-Last: Brau
Author-Name: Matteo Lippi Bruni
Author-X-Name-First: Matteo
Author-X-Name-Last: Lippi Bruni
Author-Name: Anna Maria Pinna
Author-X-Name-First: Anna Maria
Author-X-Name-Last: Pinna
Title: Public versus private demand for covering long-term care expenditures
Abstract:
This article studies the determinants of the Willingness to Pay (WTP) for
Long-Term Care (LTC) insurance coverage. Two alternatives are considered:
one compulsory, financed through taxes, the other purchased on a voluntary
basis and paid through a premium. WTP was elicited through open-ended
contingent valuation within a survey conducted in the Italian region
Emilia-Romagna about LTC population needs. We model information on
individual WTP as a two-stage process, where respondents first establish
their interest for LTC cover, then state their WTP. Results show that
interest and WTP are influenced by different variables, and that
differences arise also between the WTP for public and private coverage.
Journal: Applied Economics
Pages: 3651-3668
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802167343
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802167343
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3651-3668
Template-Type: ReDIF-Article 1.0
Author-Name: Tiziano Razzolini
Author-X-Name-First: Tiziano
Author-X-Name-Last: Razzolini
Title: Study on labour supply when tax evasion is an option with Box-Cox functional forms and random parameters
Abstract:
Labour supply when tax evasion is an option is analysed within a discrete
choice framework which incorporates random parameters and Box-Cox
functional forms, using mixed logit models. Deviates in parameters and, in
some cases, correlation between alternatives in the evasion group are
found to be significant. The models utilized yield good predictions in
terms of labour supply and taxes paid by nonevaders. The goodness-of-fit
and quality of prediction is improved by the introduction of correlation
between random coefficients.
Journal: Applied Economics
Pages: 3669-3684
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802243797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802243797
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3669-3684
Template-Type: ReDIF-Article 1.0
Author-Name: Corrado Andini
Author-X-Name-First: Corrado
Author-X-Name-Last: Andini
Title: Within-groups wage inequality and schooling: further evidence for Portugal
Abstract:
This article provides further evidence on the positive impact of
schooling on within-groups wage dispersion in Portugal, using data on male
workers from the 2001 wave of the European Community Household Panel. The
issue of schooling endogeneity is taken into account by using the latest
available instrumental-variable technique for quantile regression, i.e.
the control-function estimator due to Lee (2007). The findings are
compared with earlier results based on different techniques, i.e. the
instrumental-variable estimator due to Arias et al. (2001) and the
standard exogeneity-based estimator due to Koenker and Bassett (1978).
Journal: Applied Economics
Pages: 3685-3691
Issue: 28
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314564
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314564
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Handle: RePEc:taf:applec:v:42:y:2010:i:28:p:3685-3691
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Rup Singh
Author-X-Name-First: Rup
Author-X-Name-Last: Singh
Title: Effects of trade openness on the steady-state growth rates of selected Asian countries with an extended exogenous growth model
Abstract:
The Solow (1956) growth model is extended with an endogenous growth
framework to estimate the effects of trade openness on the Steady State
Growth Rate (SSGR). Estimates of the augmented production functions are
used to compute the SSGRs for Singapore, Malaysia, Hong Kong, India and
Thailand. Good policies that increase the growth effects of openness is
also tested with an interactive term. Our results show that Singapore has
the highest SSGR of 2.75%, followed by Hong Kong and Thailand with 2.5%.
India and Malaysia have lower SSGRs of 1.7% and 0.5%, respectively.
Journal: Applied Economics
Pages: 3693-3702
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802534468
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802534468
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3693-3702
Template-Type: ReDIF-Article 1.0
Author-Name: Johnnie Johnson
Author-X-Name-First: Johnnie
Author-X-Name-Last: Johnson
Author-Name: Alistair Bruce
Author-X-Name-First: Alistair
Author-X-Name-Last: Bruce
Author-Name: Jiejun Yu
Author-X-Name-First: Jiejun
Author-X-Name-Last: Yu
Title: The ordinal efficiency of betting markets: an exploded logit approach
Abstract:
This article offers a new perspective on efficiency in betting markets by
examining the degree to which finishing order in horse races corresponds
to probabilities inherent in odds across different categories of horse
race. The application of an exploded logit procedure reveals a
significantly greater degree of ordinal efficiency in higher relative to
lower-class races. Explanations for the phenomenon include differences in
prize-related incentives, cross-market distinctions in information markets
and differential opportunity/incentive for market manipulation.
Journal: Applied Economics
Pages: 3703-3709
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314622
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314622
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3703-3709
Template-Type: ReDIF-Article 1.0
Author-Name: Miao Wang
Author-X-Name-First: Miao
Author-X-Name-Last: Wang
Title: Foreign direct investment and domestic investment in the host country: evidence from panel study
Abstract:
This article examines the impact of inward Foreign Direct Investment
(FDI) on host countries' domestic investment. Utilizing data from 50
countries over the period of 1970 to 2004, we find that inward FDI has a
negative contemporaneous effect on domestic investment, while the
cumulative effect of FDI over time tends to be positive. In addition, we
separately study FDI in Developed Countries (DCs) and Less Developed
Countries (LDCs). The effect of contemporaneous FDI on domestic investment
is negative in DCs, and the cumulative effect of FDI is neutral. Strong
evidence suggests that the contemporaneous effect of FDI on domestic
investment is neutral in LDCs, while the cumulative effect of FDI is
positive.
Journal: Applied Economics
Pages: 3711-3721
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314580
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314580
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3711-3721
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Bailey
Author-X-Name-First: Mark
Author-X-Name-Last: Bailey
Author-Name: Vani Borooah
Author-X-Name-First: Vani
Author-X-Name-Last: Borooah
Title: What enhances mathematical ability? A cross-country analysis based on test scores of 15-year-olds
Abstract:
This article examines the mathematical abilities of 15-year-olds in a
range of countries which participated in the 2003 cycle of the
Organization for Economic Cooperation and Development (OCED)'s Programme
for International Student Assessment (PISA). Utilizing information on the
scores obtained by individual students in the mathematical part of the
PISA assessment, we use a range of indicators from the literature on
inequality and poverty to evaluate the 'mathematical performance' of
participating countries. Since data from PISA contained a wealth of
information on the circumstances of the students in terms of their home
and school environment, we identify and examine the relative influence of
factors which serve to enhance the mathematical performance of students in
the PISA assessment.
Journal: Applied Economics
Pages: 3723-3733
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314598
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314598
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3723-3733
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Reboredo
Author-X-Name-First: Juan
Author-X-Name-Last: Reboredo
Title: Nonlinear effects of oil shocks on stock returns: a Markov-switching approach
Abstract:
Using Markov-switching models, we investigate whether oil price shocks
have nonlinear effects on stock returns. Empirical evidence from a set of
international stock indexes suggests that an increase in oil prices has a
negative and significant impact on stock prices in one state of the
economy, whereas this effect is significantly dampened in another state of
the economy. Furthermore, it is shown that changes in oil prices or in oil
price volatility do not lead to a higher probability of switching between
regimes.
Journal: Applied Economics
Pages: 3735-3744
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314606
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314606
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3735-3744
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Aiello
Author-X-Name-First: Francesco
Author-X-Name-Last: Aiello
Author-Name: Paola Cardamone
Author-X-Name-First: Paola
Author-X-Name-Last: Cardamone
Author-Name: Maria Rosaria Agostino
Author-X-Name-First: Maria Rosaria
Author-X-Name-Last: Agostino
Title: Evaluating the impact of nonreciprocal trade preferences using gravity models
Abstract:
This article presents new evidence on the impact of Nonreciprocal
Preferential Trade Policies (NRPTPs) granted by developed countries to
exports from developing countries over the period 1995 to 2003. The
analysis has been carried out by using three levels of data aggregation.
It accounts for unobservable heterogeneity, endogeneity of the
preferential treatment and potential selection bias. We find a positive
and significant impact of NRPTPs when considering total exports and total
agricultural exports. However, at 2-digit agricultural level the results
are heterogeneous.
Journal: Applied Economics
Pages: 3745-3760
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802314614
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802314614
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3745-3760
Template-Type: ReDIF-Article 1.0
Author-Name: Nissim Ben David
Author-X-Name-First: Nissim Ben
Author-X-Name-Last: David
Title: An iteration process for calculating labour market flows
Abstract:
This article presents a technique for calculating labour market flows,
given labour market stocks of workers and nonemployed agents at the
beginning and at the end of a certain period of time. I build a system of
equations that define the stocks as a product of the flows. For a vector
of stocks Y and a vector of flows X, the system of equations is defined as
Y = A*X. However, the system is not solvable (the flows cannot be
identified) due to singularity of the matrix A. I suggest an iteration
process that enables us to solve the system and identify the flows given a
chosen negligible deviation from the true flows.
Journal: Applied Economics
Pages: 3761-3766
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802359924
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802359924
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3761-3766
Template-Type: ReDIF-Article 1.0
Author-Name: Angie Hernandez
Author-X-Name-First: Angie
Author-X-Name-Last: Hernandez
Author-Name: Jorge Dresdner
Author-X-Name-First: Jorge
Author-X-Name-Last: Dresdner
Title: The effect of temporal closures and individual quotas on fishing trip duration: a hazard function analysis
Abstract:
In this article, we assess the effect that two different fishery
management regimes have on the duration of the fishing trip. A basic
theoretical model predicts that trip duration should increase with
temporal closures and decrease with an individual quota system. Therefore,
we propose and apply an empirical trip duration model. Estimations are
based on data for the pelagic fleet in central-southern Chile. Conforming
to the theoretical predictions, the results indicate that temporal
closures tend to increase trip duration, whereas individual quotas reduce
it. Moreover, the regulatory regimes also affect the magnitude of the
impact that other determinants have on trip duration. The results are
consistent with increased efficiency in fleet operation under an
individual quota system.
Journal: Applied Economics
Pages: 3767-3776
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360096
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360096
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3767-3776
Template-Type: ReDIF-Article 1.0
Author-Name: M. Angeles Carnero
Author-X-Name-First: M. Angeles
Author-X-Name-Last: Carnero
Author-Name: Blanca Martinez
Author-X-Name-First: Blanca
Author-X-Name-Last: Martinez
Author-Name: Rocio Sanchez-Mangas
Author-X-Name-First: Rocio
Author-X-Name-Last: Sanchez-Mangas
Title: Mobbing and its determinants: the case of Spain
Abstract:
The objective of this article is to analyse empirically the problem of
mobbing in Spain. Based on the fifth Spanish survey on working conditions,
we find that during 2003, around 5% of workers declared being mobbed at
their workplace. Some personal, job characteristics and working conditions
are found to be significant at explaining the probability of being a
mobbing victim. Finally, we find differences in the variables affecting
such probability depending on the victim's gender.
Journal: Applied Economics
Pages: 3777-3787
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360112
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360112
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3777-3787
Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Dopke
Author-X-Name-First: Jorg
Author-X-Name-Last: Dopke
Author-Name: Sebastian Weber
Author-X-Name-First: Sebastian
Author-X-Name-Last: Weber
Title: The within-distribution business cycle dynamics of German firms
Abstract:
In this article, we analyse stylized facts for Germany's business cycle
at the firm level. Based on longitudinal firm-level data from the
Bundesbank's balance sheet statistics covering, on average, 55 000 firms
per year from 1971 to 1998, we estimate transition probabilities of a firm
in a certain real sales growth regime switching to another regime in the
next period, e.g. whether a firm that has witnessed a high growth rate is
likely to stay in a regime of high growth or is bound to switch to a
regime of low growth in the subsequent period. We find that these
probabilities depend on the business cycle position.
Journal: Applied Economics
Pages: 3789-3802
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360120
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360120
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3789-3802
Template-Type: ReDIF-Article 1.0
Author-Name: Oludele Akinloye Akinboade
Author-X-Name-First: Oludele Akinloye
Author-X-Name-Last: Akinboade
Author-Name: Daniel Makina
Author-X-Name-First: Daniel
Author-X-Name-Last: Makina
Title: Econometric analysis of bank lending and business cycles in South Africa
Abstract:
This article examines econometric relationships between bank lending and
business cycle in South Africa. Two long-run economic relationships are
hypothesized between total credit and the variables, namely, coincidental
indicators, spread between lending and borrowing rates, money supply,
stock price index, inflation and banking sector specific factors included
in the model. Of these variables, only coincident indicators, changes in
money supply as well as capital, and reserve are found to exert some
influence on short-run total credit availability.
Journal: Applied Economics
Pages: 3803-3811
Issue: 29
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360138
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Handle: RePEc:taf:applec:v:42:y:2010:i:29:p:3803-3811
Template-Type: ReDIF-Article 1.0
Author-Name: Turgut Kısınbay
Author-X-Name-First: Turgut
Author-X-Name-Last: Kısınbay
Title: Predictive ability of asymmetric volatility models at medium-term horizons
Abstract:
Using realized volatility to estimate conditional variance of financial
returns, we compare forecasts of volatility from linear GARCH models with
asymmetric ones. We consider horizons extending to 30 days. Forecasts are
compared using three different evaluation tests. With data from an equity
index and two foreign exchange returns, we show that asymmetric models
provide statistically significant forecast improvements upon the GARCH
model for two of the datasets and improve forecasts for all datasets by
means of forecasts combinations. These results extend to about 10 days in
the future, beyond which the forecasts are statistically inseparable from
each other.
Journal: Applied Economics
Pages: 3813-3829
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360211
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360211
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3813-3829
Template-Type: ReDIF-Article 1.0
Author-Name: Saziye Gaziog-super-˜lu
Author-X-Name-First: Saziye
Author-X-Name-Last: Gaziog-super-˜lu
Author-Name: Azize Bastıyalı-Hayfavi
Author-X-Name-First: Azize
Author-X-Name-Last: Bastıyalı-Hayfavi
Title: Stochastic optimization applied to self-financing portfolio: does bequest matter?
Abstract:
The article studies stochastic optimization of an intertemporal
consumption model to allocate financial assets between risky and risk-free
assets. We use a stochastic optimization technique, in which utility is
maximized subject to a self-financing portfolio constraint. The papers in
literature have estimated the errors of Euler equations using data from
financial markets. It has been shown that it is sufficient to test the
first order Euler equation implied by the model. However, they all assume
a constant consumption-wealth ratio that constrains the boundary
conditions, hence influencing the coefficient of the risk premium. The
main contribution of our article is that we drop the assumption of a
constant consumption-wealth ratio. We have an analytical solution using a
utility maximization model with a stochastic self-financing portfolio. We
introduce a terminal condition of wealth with and without bequests. We
also simulate the stochastic optimization with a self-financing portfolio,
distinguishing risk neutral investors (γ-low) from high risk averse
investors (γ-high). We show that the model with bequest has a higher
level of wealth and a smoother decline of consumption over time than the
model with no bequest at the end of the period. The model with no bequest
has the same level of consumption and a sharp fall at the end of the
period. Risk averse agents with high return assets have a higher amount of
wealth than risk-neutral agents with lower return assets.
Journal: Applied Economics
Pages: 3831-3838
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802112364
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802112364
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3831-3838
Template-Type: ReDIF-Article 1.0
Author-Name: Erdinc Telatar
Author-X-Name-First: Erdinc
Author-X-Name-Last: Telatar
Author-Name: Funda Telatar
Author-X-Name-First: Funda
Author-X-Name-Last: Telatar
Author-Name: Tarkan Cavusoglu
Author-X-Name-First: Tarkan
Author-X-Name-Last: Cavusoglu
Author-Name: Umur Tosun
Author-X-Name-First: Umur
Author-X-Name-Last: Tosun
Title: Political instability, political freedom and inflation
Abstract:
Using a dynamic panel data approach, we estimate the impact of the
political and institutional factors on inflation. Estimation results show
that a lower degree of political instability generates lower inflation
only for developed and low-inflation countries. However, when political
freedom is taken into account, political instability appears to be
influential on inflation also for developing countries and turns out to be
significant only for high-inflation countries. Such findings emphasize the
inflation-reducing effects of political stability depending on democratic
political structure.
Journal: Applied Economics
Pages: 3839-3847
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360237
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360237
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3839-3847
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Woodland
Author-X-Name-First: Alan
Author-X-Name-Last: Woodland
Author-Name: Kishti Sen
Author-X-Name-First: Kishti
Author-X-Name-Last: Sen
Title: The volatility of Australian traded goods' prices
Abstract:
It is generally accepted that the Australian economy is continually
subject to unanticipated shocks, particularly, unexpected swings in the
prices of Australia's internationally- traded goods. This article
empirically investigates the nature and extent of volatility in import and
export prices faced by the Australian production sector. It estimates
multivariate GARCH models of the stochastic processes generating the
prices of imports and exports, and of important components of exports and
imports. This article proposes an index of volatility, which is used to
provide a summary measure of the extent of volatility in a multivariate
context. The overall conclusion is that the price growth rates for
Australia's traded goods exhibit considerable time variation in volatility
and that these price growth rates are highly and positively correlated
with each other.
Journal: Applied Economics
Pages: 3849-3869
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360286
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360286
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3849-3869
Template-Type: ReDIF-Article 1.0
Author-Name: Shunsuke Managi
Author-X-Name-First: Shunsuke
Author-X-Name-Last: Managi
Title: Productivity measures and effects from subsidies and trade: an empirical analysis for Japan's forestry
Abstract:
Several techniques have been proposed in the literature to measure
productivity. While allowing for inefficiency of the production unit, we
provide a methodological comparison of alternative approaches to measure
total factor productivity. This article evaluates the effects of
unintended policy outcomes such as government subsidies and foreign trade.
Empirically, we analyse the forest productivity of timber in Japan by
using panel data on 46 regions. The results suggest substantial variation
in productivity between these two techniques although average trends are
similar. We find that subsidies impede competition since the government is
ready to rescue a loss-making firm with subsidies rather than allow it to
close. In contrast, trade is shown to have positive effects on
productivity.
Journal: Applied Economics
Pages: 3871-3883
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360146
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360146
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3871-3883
Template-Type: ReDIF-Article 1.0
Author-Name: Gicheol Jeong
Author-X-Name-First: Gicheol
Author-X-Name-Last: Jeong
Author-Name: Jongsu Lee
Author-X-Name-First: Jongsu
Author-X-Name-Last: Lee
Title: Estimating consumer preferences for online music services
Abstract:
This article analyses consumer preferences with regard to important
attributes of online music services. Conjoint analysis and a random
coefficient discrete choice model using Bayesian approach with Gibbs
sampling are used to estimate the preferences. Based on the quantitative
results, we use simulation to look at how a new pricing strategy and the
threat of legal penalty for file sharing would influence the online music
market. Findings include these: estimated willingness to pay for
downloading one music file is significantly less than the actual price of
the file; consumers are sensitive to longer search and download times for
music files and very sensitive to the threat of legal action; and
consumers are not sensitive to online music services broadening their
catalogues. Finally, the simulation shows that a combination of increased
transaction costs for illegal file sharing and lower-priced digital music
files would inhibit illegal file sharing and bolster the number of people
purchasing music legally from the online services.
Journal: Applied Economics
Pages: 3885-3893
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360153
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360153
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3885-3893
Template-Type: ReDIF-Article 1.0
Author-Name: Harald Tauchmann
Author-X-Name-First: Harald
Author-X-Name-Last: Tauchmann
Title: Consistency of Heckman-type two-step estimators for the multivariate sample-selection model
Abstract:
This analysis shows that multivariate generalizations to the classical
Heckman (1976, 1979) two-step estimator that account for cross-equation
correlation and use the inverse Mills ratio as correction term are
consistent only if certain restrictions apply to the true error-covariance
structure. An alternative class of generalizations to the classical
Heckman two-step approach is derived that condition on the entire
selection pattern rather than selection in particular equations and,
therefore, use modified correction terms. It is shown that this class of
estimators is consistent. In addition, Monte-Carlo results illustrate that
these estimators display a smaller mean square prediction error.
Journal: Applied Economics
Pages: 3895-3902
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360179
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360179
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3895-3902
Template-Type: ReDIF-Article 1.0
Author-Name: Benoit Dostie
Author-X-Name-First: Benoit
Author-X-Name-Last: Dostie
Author-Name: Rajshri Jayaraman
Author-X-Name-First: Rajshri
Author-X-Name-Last: Jayaraman
Author-Name: Mathieu Trepanier
Author-X-Name-First: Mathieu
Author-X-Name-Last: Trepanier
Title: What (if any) are the returns to computer use?
Abstract:
Using North American data, we revisit the question first broached by
Krueger (1993) and re-examined by DiNardo and Pischke (1997) of whether
there exists a real wage differential associated with computer use.
Employing a mixed effects model with matched employer-employee data to
correct for the fact that workers and workplaces that use computers are
self-selected, we find that computer users enjoy an almost 4% wage premium
over nonusers. Failure to correct for worker and workplace selection
effect leads to a more than twofold overestimate of this premium.
Journal: Applied Economics
Pages: 3903-3912
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360187
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360187
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3903-3912
Template-Type: ReDIF-Article 1.0
Author-Name: David Tennant
Author-X-Name-First: David
Author-X-Name-Last: Tennant
Author-Name: Abdullahi Abdulkadri
Author-X-Name-First: Abdullahi
Author-X-Name-Last: Abdulkadri
Title: Empirical exercises in estimating the effects of different types of financial institutions' functioning on economic growth
Abstract:
While recent studies of the finance-growth nexus have focused on the use
of proxies which more accurately capture the theorized functioning of the
financial sector, they have tended to focus either on the functioning of
the financial sector as a whole, or on the dominant institutions within
the sector. Little attention has been paid to a comparison of the relative
effects of different types of financial institutions on economic growth.
This article attempts to get a deeper understanding of the finance-growth
process by disaggregating the total financial sector impact and examining
the individual and relative effects of each type of institution in the
financial sector. We explore the empirical properties of alternative
specifications of models of the impact of financial institutions'
functioning on economic growth, by conducting a number of exercises. These
exercises experiment with various model specifications to represent the
long- and short-run impacts of the financial institutions' functioning on
economic growth, using cointegration and error correction methodologies.
Journal: Applied Economics
Pages: 3913-3924
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360252
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360252
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3913-3924
Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Services sector and economic growth in India
Abstract:
This study examines the long-run equilibrium and short-run dynamic
relationship between services sector and Gross Domestic Product (GDP) and
between services and nonservices sectors in India. The model is estimated
using the optimal single-equation and the maximum-likelihood system
estimators. All the estimators consistently suggest the cointegrating
relationship between services sector and GDP as well as between services
and nonservices sectors. The estimates of long-run elasticity parameters
are statistically significant and dimensionally consistent across the
estimators. The conventional Cumulative Sum (CUSUM) and the new CUSUM and
Moving Sum (MOSUM) tests suggest the stability of the equilibrium
residuals and reinforce the cointegrating relationship between the model
series. The error correction model provides some support for
unidirectional Granger-causality from services sector to GDP. The impulse
response and variance decomposition analyses instead suggest the
bidirectional causality between services sector and GDP and between
services and nonservices sectors. The stable growth of services sector is
essentially crucial to absorb the adverse effects of exogenous weather
shocks in agriculture and industry and provide resilience to the economy.
Journal: Applied Economics
Pages: 3925-3941
Issue: 30
Volume: 42
Year: 2010
X-DOI: 10.1080/00036840802360229
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360229
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Handle: RePEc:taf:applec:v:42:y:2010:i:30:p:3925-3941
Template-Type: ReDIF-Article 1.0
Author-Name: U. Michael Bergman
Author-X-Name-First: U.
Author-X-Name-Last: Michael Bergman
Author-Name: Yin-Wong Cheung
Author-X-Name-First: Yin-Wong
Author-X-Name-Last: Cheung
Author-Name: Kon Lai
Author-X-Name-First: Kon
Author-X-Name-Last: Lai
Title: The common-trend and transitory dynamics in real exchange rate fluctuations
Abstract:
This study examines the behaviour of both Common Trend (CT) and
transitory components of Real Exchange Rate (RER) fluctuations under the
current float. The CT component is in most cases found to be sizeable,
albeit its relative importance can vary considerably across major
currencies and its estimate can be sensitive to whether or not long-run
Purchasing Power Parity (PPP) is imposed on the data. Further analysis
suggests that both CT and transitory innovations are linked much more to
interest rate changes than to productivity changes. Accordingly, it is
interest rate, not productivity, disturbances that drive the highly
persistent RER.
Journal: Applied Economics
Pages: 1-18
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742645
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742645
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:1-18
Template-Type: ReDIF-Article 1.0
Author-Name: Jose J. Martin Martin
Author-X-Name-First: Jose J. Martin
Author-X-Name-Last: Martin
Author-Name: M. Puerto Lopez del Amo Gonzalez
Author-X-Name-First: M.
Author-X-Name-Last: Puerto Lopez del Amo Gonzalez
Author-Name: M. Dolores Cano Garcia
Author-X-Name-First: M.
Author-X-Name-Last: Dolores Cano Garcia
Title: Review of the literature on the determinants of healthcare expenditure
Abstract:
This study reviews the literature on determinants of healthcare
expenditure for the period 1998 to 2007. The methodology combines searches
in the MesH database of PubMed with the search in the principal journals
of Health Economics. 20 primary studies were found that met the criteria
for inclusion. No single pattern of results is clearly identified. Among
the 20 articles, four consider income to be the principal determinant of
healthcare expenditure, two of them jointly with population ageing. Six
highlight population ageing, as against six others that emphasize the
proximity to death. The remaining six do not focus on a specific variable,
or focus on another variable, e.g. technological progress or territorial
decentralization. 11 of the 20 articles calculate the income elasticity of
demand, only two of them obtaining a value greater than 1, thus
cataloguing healthcare expenditure as a luxury good. There is, therefore,
no unanimity in the variables and econometric regressions of healthcare
expenditure in Organization for Economic Cooperation and Development
(OECD) countries. No solid empirical evidence exists that population
ageing is one of the principal determinants of healthcare expenditure, and
factors such as technological progress, closeness to death and territorial
decentralization of healthcare are increasingly seen as important in the
development of explanatory models of healthcare expenditure.
Journal: Applied Economics
Pages: 19-46
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003689754
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689754
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:19-46
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Sutter
Author-X-Name-First: Daniel
Author-X-Name-Last: Sutter
Title: The 'liberal' media: bias or customer preferences?
Abstract:
Allegations of liberal bias against the national news media in the US
remain very contentious. Conservative critics of the media argue biased
news stems from liberal-leaning journalists. Another explanation of
alleged bias could be that liberals have a greater demand for news than
moderates or conservatives, so the media simply tailors its product to
their customers. I test whether liberals in the US have a greater demand
for news by investigating the determinants of newspaper circulation across
states and metropolitan areas. I find mixed evidence for liberal demand:
circulation is higher in more liberal metropolitan areas but is
independent of local political preferences across states.
Journal: Applied Economics
Pages: 47-52
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802419009
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802419009
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:47-52
Template-Type: ReDIF-Article 1.0
Author-Name: Denis Larocque
Author-X-Name-First: Denis
Author-X-Name-Last: Larocque
Author-Name: Michel Normandin
Author-X-Name-First: Michel
Author-X-Name-Last: Normandin
Title: A procedure to evaluate cyclical fluctuations under superior information
Abstract:
This article presents and assesses a procedure to evaluate conventional
moments characterizing fluctuations at the business cycle frequency, when
the economic agents' information set is superior to the econometrician's
one. First, we derive the theoretical conditions under which the
econometrician obtains valid statistics for the moments from laws of
motion for forcing variables that fully recover the agents' superior
information. Second, we use a new-Keynesian monetary model to document the
numerical properties of the statistics when the laws of motion are
possibly misspecified and to assess the ability of certain information
criteria to detect the presence of superior information.
Journal: Applied Economics
Pages: 53-62
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802552361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802552361
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:53-62
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Hodgson
Author-X-Name-First: Douglas
Author-X-Name-Last: Hodgson
Title: An analysis of pricing and returns in the market for French Canadian paintings
Abstract:
The valuation of French Canadian paintings is analysed empirically. Using
a sample of auction prices for major French Canadian painters for the
period 1968 to 2005, we run hedonic regressions to determine the influence
of various factors, including painter identity, on auction prices, as well
as to construct a market price index. This is then used in a second stage
analysis of the properties of these art works viewed as investment assets.
We consider the extent to which standard asset pricing theory, as
represented by the capital asset pricing model, can account for price
movements in the market for French Canadian paintings.
Journal: Applied Economics
Pages: 63-73
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802400462
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802400462
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:63-73
Template-Type: ReDIF-Article 1.0
Author-Name: Long-Hwa Chen
Author-X-Name-First: Long-Hwa
Author-X-Name-Last: Chen
Author-Name: Wei-Chung Wang
Author-X-Name-First: Wei-Chung
Author-X-Name-Last: Wang
Title: The impact of the overtime policy reform-evidence from the low-paid workers in Taiwan
Abstract:
This article investigates the effects of shortening standard workweek on
workers with different income levels. Using two repeated cross-sectional
survey data, the Taiwanese Manpower Utilization Survey and Human Resource
Survey, we estimate the impacts of the new policy on working hours and
monthly income. Our results show that the new standard workweek in Taiwan
has made the working hours drop, but the scale of decrease becomes smaller
in the following 3 years. Although the hours drop has gradually risen back
for every worker, the rate of increase is higher for the low-income
workers. The monthly incomes of the high-income female workers have
decreased, however, the decreases in the hourly wage rates are less than
their average wage rates. Our results also show that the firms have
automatically adapted under the new law and a poor enforcement scheme
after a period of time.
Journal: Applied Economics
Pages: 75-90
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802389079
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802389079
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:75-90
Template-Type: ReDIF-Article 1.0
Author-Name: Yucan Liu
Author-X-Name-First: Yucan
Author-X-Name-Last: Liu
Author-Name: C. Richard Shumway
Author-X-Name-First: C.
Author-X-Name-Last: Richard Shumway
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Author-Name: Virgil Eldon Ball
Author-X-Name-First: Virgil Eldon
Author-X-Name-Last: Ball
Title: Productivity growth and convergence in US agriculture: new cointegration panel data results
Abstract:
Dynamic effects of health and inter-state and inter-industry knowledge
spillovers, Total Factor Productivity (TFP) growth and convergence in US
agriculture are examined using recently developed procedures for panel
data and a growth accounting model. Strong evidence is found to support
the hypothesis that TFP converges to a steady state. Health care supply in
rural areas and research spillovers from other states and from
nonagricultural sectors are found to have significant impacts on the
productivity growth rate in both the short and the long run. These results
suggest a richer set of opportunities for policy makers to enhance
productivity growth than previously considered.
Journal: Applied Economics
Pages: 91-102
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802389087
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802389087
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:91-102
Template-Type: ReDIF-Article 1.0
Author-Name: Giulio Bottazzi
Author-X-Name-First: Giulio
Author-X-Name-Last: Bottazzi
Author-Name: Alex Coad
Author-X-Name-First: Alex
Author-X-Name-Last: Coad
Author-Name: Nadia Jacoby
Author-X-Name-First: Nadia
Author-X-Name-Last: Jacoby
Author-Name: Angelo Secchi
Author-X-Name-First: Angelo
Author-X-Name-Last: Secchi
Title: Corporate growth and industrial dynamics: evidence from French manufacturing
Abstract:
This work explores basic properties of the size and growth rates
distributions of firms at the aggregate and disaggregate levels. Using an
extensive dataset on French manufacturing firms, we investigate which
properties of firm size distributions and growth dynamics characterize the
aggregate dynamics and are, at the same time, robust under disaggregation.
Our analysis is based on nonlinear robust regression methods which have
never been applied before to this kind of data. The growth rates
distributions we observe are well described by a Subbotin distribution
with a shape parameter significantly lower than 1, suggesting a noticeable
departure from the Laplace behaviour reported in previous works on Italian
and the US data. At the same time, the variance of growth rates depends
negatively on size and the relationship does not seem to be linear, with
larger firms possibly displaying lower variability in their growth
dynamics. At the disaggregate level, we observe significant heterogeneity
in the firm size distributions across sectors, while the shape of the
sectoral growth rates density displays a surprising degree of homogeneity.
Journal: Applied Economics
Pages: 103-116
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802400454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802400454
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:103-116
Template-Type: ReDIF-Article 1.0
Author-Name: Feng-Li Lin
Author-X-Name-First: Feng-Li
Author-X-Name-Last: Lin
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: Does debt affect firm value in Taiwan? A panel threshold regression analysis
Abstract:
This article analyses whether leverage affects firm value and does so
using a panel of 196 Taiwanese listed companies during the 13-year
(1993-2005) period. We employ an advanced panel threshold regression model
to test whether there is a 'threshold' debt ratio which causes there to be
asymmetrical relationships between debt ratio and firm value. We adopt
Tobin's Q as proxy for firm value. We find that there are two threshold
effects between debt ratio and firm value, and these are 9.86% and 33.33%.
When the debt ratio is less than 9.86%, Tobin's Q (i.e. firm value)
increases by 0.0546%, with an increase of 1% in the debt ratio. When the
debt ratio is between 9.86% and 33.33%, we find Tobin's Q increases by
only 0.0057%, with an increase of 1% in the debt ratio. But when the debt
ratio is greater than 33.33%, there is no relationship between debt ratio
and firm value. We therefore conclude that there must be a threshold debt
ratio of less than 33.33% at which point firm value stops increasing.
These results are consistent with the trade-off theory, which suggests
that there is a static amount of debt which prompts managers to find the
'optimal capital structure' that maximizes firm value when the benefits of
debt equal the marginal cost of debt.
Journal: Applied Economics
Pages: 117-128
Issue: 1
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802360310
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360310
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Handle: RePEc:taf:applec:v:43:y:2011:i:1:p:117-128
Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Mohammadi
Author-X-Name-First: Hassan
Author-X-Name-Last: Mohammadi
Title: Long-run relations and short-run dynamics among coal, natural gas and oil prices
Abstract:
We examine the long-run relations and short-run dynamics among the three
primary energy prices-coal, natural gas and crude oil-using the annual and
monthly US data for the post-1970 period. The results are consistent with
the view that oil prices are determined globally; natural gas prices are
determined regionally and coal prices are set by long-term contracts.
Journal: Applied Economics
Pages: 129-137
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802446606
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802446606
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:129-137
Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Oktem
Author-X-Name-First: Mustafa
Author-X-Name-Last: Oktem
Author-Name: Ju-Chin Huang
Author-X-Name-First: Ju-Chin
Author-X-Name-Last: Huang
Title: Property tax shifting under imperfect competition
Abstract:
The hedonic price models are commonly used to empirically assess the
degree to which property taxes are shifted from property owners to
property renters. The findings of these studies vary sporadically in terms
of the degree of tax shifting. The competitiveness of housing markets may
significantly influence the degree of tax shifting. In this article, we
allow a nonzero price-cost markup in the hedonic price equation and
examine the impact of market power on property tax shifting. In our case
study, we examine the property-specific characteristics, occupancy record
and local property tax associated with hundreds of managed rental
properties in central New Hampshire. The results show that, depending on
the degree of market power exercised by a property management firm, the
anti-competitive structure of the market may significantly contribute to
property tax shifting from property owners to property renters.
Journal: Applied Economics
Pages: 139-152
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802446614
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802446614
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:139-152
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Stephane Mesonnier
Author-X-Name-First: Jean-Stephane
Author-X-Name-Last: Mesonnier
Title: The forecasting power of real interest rate gaps: an assessment for the Euro area
Abstract:
The real Interest Rate Gap (IRG)-the gap between the short-term real
interest rate and its 'natural' level-is a theoretical concept that has
attracted much attention in central banks in recent years. This article
aims at clarifying its practical relevance for monetary policy in real
time. For this purpose, it provides an empirical assessment of the
usefulness of a semi-structural versus purely statistical estimates of the
real IRG for predicting policy relevant macroeconomic variables in the
Euro area. However mixed, the results confirm that semi-structural
estimates of the real IRG deserve being added to the central banks'
toolbox.
Journal: Applied Economics
Pages: 153-172
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802481868
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802481868
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:153-172
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Title: Can Baumol's model of unbalanced growth contribute to explaining the secular rise in health care expenditure? An alternative test
Abstract:
In a recent paper, I argued that Baumol's model of 'unbalanced growth'
offers a ready explanation for the observed secular rise in Health Care
Expenditure (HCE) in rich countries. Baumol's model implies that HCE is
driven by wage increases in excess of productivity growth. I tested this
hypothesis empirically, using data from a panel of 19 Organization for
Economic Cooperation and Development (OECD) countries and found robust
evidence in favour of Baumol's theory. An alternative way to test Baumol's
theory is to check whether its implication that variations in the relative
price of medical care contribute significantly to explaining variations in
health expenditure in the same direction has an empirical grounding.
Earlier studies, although mostly not in an explicit attempt to test
Baumol's theory, have occasionally rejected this hypothesis. Despite poor
data quality of the available medical price indices, I perform the
alternative test using data for nine OECD countries. My findings suggest
that the relative price of medical care is in fact a statistically
significant explanatory variable for health expenditure, thus lending
support to Baumol's theory.
Journal: Applied Economics
Pages: 173-184
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802400470
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802400470
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:173-184
Template-Type: ReDIF-Article 1.0
Author-Name: Alfred Haug
Author-X-Name-First: Alfred
Author-X-Name-Last: Haug
Author-Name: Syed Basher
Author-X-Name-First: Syed
Author-X-Name-Last: Basher
Title: Linear or nonlinear cointegration in the purchasing power parity relationship?
Abstract:
We test long-run Purchasing Power Parity (PPP) within a general model of
cointegration of linear and nonlinear form. Nonlinear cointegration is
tested with rank tests of Breitung (2001). We determine first the order of
integration of each variable, using monthly data from the post-Bretton
Woods era for G-10 countries. In many cases prices are I(2), whereas all
exchange rates are I(1). However, there are several countries that have a
price level that linearly cointegrates with the US price level so that
this combination is I(1). Overall, we find some, though limited, evidence
for nonlinear and also linear cointegration for the weak version of PPP.
Journal: Applied Economics
Pages: 185-196
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802403656
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802403656
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:185-196
Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui
Author-X-Name-First: Kenji
Author-X-Name-Last: Matsui
Title: Dynamic adjustment process of retail store density in cointegrated panels: evidence from Japan
Abstract:
Using recently developed econometric techniques for testing the existence
of unit roots and cointegration in panel datasets, this article
investigates the dynamic adjustment process of the number of retail stores
per person by business type. Specifically, the major objective of this
article is to examine whether there is a long-term relationship between
retail store density and consumers' ability to transport and store goods;
that is, the relative costs of performing distributive tasks, as suggested
in previous studies relating to store density. The first conclusion from
this article is that a cointegration relationship exists between store
density for most types of retail businesses and proxies for consumers'
ability to transport and store goods. Second, the estimation results of an
error correction model reveal that the density of stores dealing in
convenience goods exhibits a slow adjustment speed to recover the long-run
equilibrium density level, while the density of stores selling shopping
goods shows relatively fast adjustment.
Journal: Applied Economics
Pages: 197-205
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802534450
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802534450
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:197-205
Template-Type: ReDIF-Article 1.0
Author-Name: David Sondermann
Author-X-Name-First: David
Author-X-Name-Last: Sondermann
Author-Name: Mark Trede
Author-X-Name-First: Mark
Author-X-Name-Last: Trede
Author-Name: Bernd Wilfling
Author-X-Name-First: Bernd
Author-X-Name-Last: Wilfling
Title: Estimating the degree of interventionist policies in the run-up to EMU
Abstract:
Based on a theoretical monetary exchange-rate model in continuous time,
this article establishes a sequential estimation framework which is
capable of indicating central bank intervention in the run-up to a
currency union. Using daily pre-European Monetary Union (pre-EMU)
exchange-rate data for the countries of the current Euro zone, we find
mixed evidence of active pre-EMU intervention policies (so-called
institutional frontloading strategies). Our estimation framework is highly
relevant to economic and political agents operating in financial markets
of the upcoming EMU accession countries.
Journal: Applied Economics
Pages: 207-218
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802481884
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802481884
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:207-218
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Holmes
Author-X-Name-First: Mark
Author-X-Name-Last: Holmes
Author-Name: Theodore Panagiotidis
Author-X-Name-First: Theodore
Author-X-Name-Last: Panagiotidis
Author-Name: Abhijit Sharma
Author-X-Name-First: Abhijit
Author-X-Name-Last: Sharma
Title: The sustainability of India's current account
Abstract:
This study conducts an investigation into the sustainability of the
Indian current account using data for 1950 onwards. A necessary condition
for current account sustainability is that exports and imports are
cointegrated. After testing for unit roots that allow for a structural
break, we employ parametric tests for cointegration: based on Johansen
(1995) and Saikkonen and Lutkepohl (2000a, b, c) as well as the
nonparametric procedure proposed by Breitung (2002) and Breitung and
Taylor (2003) that does not assume linearity. By employing these
procedures recursively, two distinct regimes are identified characterized
by whether or not imports and exports are cointegrated. The regime of
noncointegration runs until the late 1990s and the second regime of
cointegration is present after that. This latter regime coincides with the
liberalization of the Indian economy.
Journal: Applied Economics
Pages: 219-229
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802481876
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802481876
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:219-229
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Yang-Cheng Lu
Author-X-Name-First: Yang-Cheng
Author-X-Name-Last: Lu
Author-Name: D. P. Tang
Author-X-Name-First: D. P.
Author-X-Name-Last: Tang
Author-Name: Wen-Chi Liu
Author-X-Name-First: Wen-Chi
Author-X-Name-Last: Liu
Title: Long-run purchasing power parity with asymmetric adjustment: further evidence from African countries
Abstract:
This study applies threshold cointegration test advanced by Enders and
Siklos (2001) to investigate the properties of asymmetric adjustment in
long-run Purchasing Power Parity (PPP) in 22 selected African countries
during the period of January 1980 to December 2003. Although there is
evidence of long-run PPP for most African countries, the adjustment
mechanism is asymmetric. These results have particularly important policy
implications for African countries.
Journal: Applied Economics
Pages: 231-242
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802467073
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802467073
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:231-242
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Cuestas
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Cuestas
Author-Name: Estefania Mourelle
Author-X-Name-First: Estefania
Author-X-Name-Last: Mourelle
Title: Nonlinearities in real exchange rate determination: do African exchange rates follow a random walk?
Abstract:
In this article, we aim at modelling the long-run behaviour of the Real
Effective Exchange Rates (REER) for a pool of African countries. Not much
attention has been paid to this group of countries, in particular, to the
existence of nonlinearities in the long-run path of such a variable.
Controlling for two sources of nonlinearities, i.e. asymmetric adjustment
to equilibrium and nonlinear deterministic trends allows us to gain some
insight about the behaviour of the African REER. We find that these
sources of nonlinearities help us to explain the apparent unit root
behaviour found applying linear unit root tests for most of the countries.
Journal: Applied Economics
Pages: 243-258
Issue: 2
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802467065
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802467065
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Handle: RePEc:taf:applec:v:43:y:2011:i:2:p:243-258
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Henneke
Author-X-Name-First: Jan
Author-X-Name-Last: Henneke
Author-Name: Svetlozar Rachev
Author-X-Name-First: Svetlozar
Author-X-Name-Last: Rachev
Author-Name: Frank Fabozzi
Author-X-Name-First: Frank
Author-X-Name-Last: Fabozzi
Author-Name: Metodi Nikolov
Author-X-Name-First: Metodi
Author-X-Name-Last: Nikolov
Title: MCMC-based estimation of Markov Switching ARMA-GARCH models
Abstract:
Regime switching models, especially Markov Switching (MS) models, are
regarded as a promising way to capture nonlinearities in time series.
Combining the elements of MS models with full Autoregressive Moving
Average-Generalized Autoregressive Conditional Heteroskedasticity
(ARMA-GARCH) models poses severe difficulties for the computation of
parameter estimators. Existing methods can become completely unfeasible
due to the full path dependence of such models. In this article, we
demonstrate how to overcome this problem. We formulate a full
MS-ARMA-GARCH model and its Bayes estimator. This facilitates the use of
Markov Chain Monte Carlo methods and allows us to develop an algorithm to
compute the Bayes estimator of the regimes and parameters of our model.
The approach is illustrated on simulated data and with returns from the
New York Stock Exchange (NYSE). Our model is then compared to other
approaches and clearly proves to be advantageous.
Journal: Applied Economics
Pages: 259-271
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802552379
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802552379
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:259-271
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Giovanni Trovato
Author-X-Name-First: Giovanni
Author-X-Name-Last: Trovato
Author-Name: David Andres Londono Bedoya
Author-X-Name-First: David Andres
Author-X-Name-Last: Londono Bedoya
Title: Income, relational goods and happiness
Abstract:
Our empirical analysis on the determinants of self-declared happiness on
more than 100 000 individuals from representative samples in 82 world
countries does not reject the hypothesis that the time spent for
relationships has a significant and positive impact on happiness. This
basic nexus helps to understand new unexplored paths in the so-called
'happiness-income paradox'. To illustrate them we show that personal
income has two main effects on happiness. The first is a positive effect
which depends on individual's ranking within domestic income quintiles.
The second is determined by the relationship between income and relational
goods. In principle, more productive individuals may substitute (if the
income effect prevails over the substitution effect) worked hours with the
nonworking time made free for enjoying relationships, when they have
strong preferences for them. The problem is that these individuals tend to
have ties with their income class peers who share with them a high
opportunity cost for the time spent for relationships. Hence, a
coordination failure may reduce the joint investment in relational goods
(local public goods which need to be co-produced in order to be enjoyed
together) and, through this effect, individuals in the highest income
quintiles may end up with poorer relational goods. The indirect impact of
personal income on happiness through this channel is therefore expected to
be negative.
Journal: Applied Economics
Pages: 273-290
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802570439
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570439
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:273-290
Template-Type: ReDIF-Article 1.0
Author-Name: Byeongyong Paul Choi
Author-X-Name-First: Byeongyong Paul
Author-X-Name-Last: Choi
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Title: Foreign-owned insurer performance in the US property-liability markets
Abstract:
Foreign-owned property-liability insurers have increased their market
share in the US in the recent decades. They may have achieved this by
being more efficient, by undercutting prices to attract away business from
their domestic rivals, or both. We investigate return, risk, efficiency
and determinants of efficiency performance of these insurers relative to
their domestic competitors. We find that these firms are less profitable
and less efficient in terms of cost scale and revenue X-efficiencies but
more efficient in terms of cost X- and revenue scale efficiencies.
Overall, the evidence shows that both of the aforementioned factors have
contributed to their growth.
Journal: Applied Economics
Pages: 291-306
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802552353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802552353
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:291-306
Template-Type: ReDIF-Article 1.0
Author-Name: J. W. B. Bos
Author-X-Name-First: J. W. B.
Author-X-Name-Last: Bos
Author-Name: M. Koetter
Author-X-Name-First: M.
Author-X-Name-Last: Koetter
Title: Handling losses in translog profit models
Abstract:
In this article, we compare standard approaches used to handle losses in
logarithmic profit models with a simple novel approach. We estimate
translog stochastic profit frontiers, and discuss discriminatory power,
rank stability and the precision of Profit Efficiency (PE) scores.
Contrary to existing methods, our approach does not result in a loss of
observations. Our new method enhances rank stability and discriminatory
power, and improves the precision of PE scores.
Journal: Applied Economics
Pages: 307-312
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802570413
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570413
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:307-312
Template-Type: ReDIF-Article 1.0
Author-Name: Mathieu Narcy
Author-X-Name-First: Mathieu
Author-X-Name-Last: Narcy
Title: Would nonprofit workers accept to earn less? Evidence from France
Abstract:
This article focuses on wage differentials between French nonprofit,
for-profit and public sectors. Considering the public sector allows
testing more extensively the labour donation theory (Preston, 1989). The
findings support this theory because nonprofit workers accept to earn
significantly less than they would earn in the for-profit and public
sectors. They also suggest differences in the motivations of workers in
these sectors. Nonprofit workers are attracted to their work for reasons
transcending material compensation.
Journal: Applied Economics
Pages: 313-326
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802570447
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570447
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:313-326
Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Ferreira
Author-X-Name-First: Mauro
Author-X-Name-Last: Ferreira
Title: Capturing asymmetry in real exchange rate with quantile autoregression
Abstract:
Quantile Autoregression (QAR) is used to explore asymmetries in the
adjustment process of pairwise Real Exchange Rate (RER) between the
Italian lire, French franc, Deutsch mark and the British pound. Based on
the best specification for each quantile we construct predicted
conditional density functions, which guided us to identify two sources of
asymmetry: (1) dispersion depends on the conditioned value of the RER,
i.e. 'conditional' heteroskedasticity; (2) the probability of increases
and falls also changes according to the conditioned value, i.e. there is
higher probability for the RER to appreciate (depreciate) given the
currency is depreciated (appreciated). We only verified strong
heterokedasticity in relations among the lire, franc and mark, which was
resolved by estimating quadratic autoregressive model for some quantiles.
Relations involving the pound presented stable but higher dispersion
indicating larger probability of wider oscillation.
Journal: Applied Economics
Pages: 327-340
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802584919
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584919
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:327-340
Template-Type: ReDIF-Article 1.0
Author-Name: John Robst
Author-X-Name-First: John
Author-X-Name-Last: Robst
Author-Name: Jennifer VanGilder
Author-X-Name-First: Jennifer
Author-X-Name-Last: VanGilder
Title: The role of childhood sexual victimization in the occupational choice of adults
Abstract:
Numerous studies have found that survivors of Childhood Sexual Abuse
(CSA) suffer as adults from depression, post-traumatic stress disorder,
alcohol and drug abuse, and other mental illnesses. As such, the effect of
experiencing traumatic events during childhood including sexual abuse can
be long lasting. The lasting effects of CSA may have economic as well as
psychological implications. This article examines the relationship between
CSA and future labour market outcomes for men and women. In particular, we
examine whether the occupations of abuse survivors differ from those who
were not subject to sexual abuse, focusing on the gender composition of
the occupation. In addition, we determine whether there are gender
differences in the consequences of CSA, and whether incomes of CSA victims
vary across male and female occupations.
Journal: Applied Economics
Pages: 341-354
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802584893
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584893
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:341-354
Template-Type: ReDIF-Article 1.0
Author-Name: Stuart Thomas
Author-X-Name-First: Stuart
Author-X-Name-Last: Thomas
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Heather Mitchell
Author-X-Name-First: Heather
Author-X-Name-Last: Mitchell
Author-Name: Richard Heaney
Author-X-Name-First: Richard
Author-X-Name-Last: Heaney
Title: Seasonal factors and outlier effects in rate of return on electricity spot prices in Australia's National Electricity Market
Abstract:
This article documents seasonal patterns and other characteristics of
electricity spot prices in the Australian National Electricity Market
(NEM), over a 7-year sample period. The goal is to investigate more
specifically the influence of seasonalities and outliers noted in the body
of literature on electricity prices. The results confirm that electricity
prices exhibit significant time-of-day and day-of-week effects and monthly
and yearly effects are significant to a lesser degree. Extremely high
spikes in the price series are an important characteristic of electricity
prices and are shown to be a highly significant component of returns
behaviour. Negative prices are unusual in financial time series data but
occur in Australian electricity prices and are found to be influential on
returns. The implications of these finding are that seasonal and outlier
effects should not be ignored in efforts to model electricity prices.
Journal: Applied Economics
Pages: 355-369
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802570421
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802570421
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:355-369
Template-Type: ReDIF-Article 1.0
Author-Name: S. Rajapakse
Author-X-Name-First: S.
Author-X-Name-Last: Rajapakse
Title: Estimation of a complete system of nonlinear Engel curves: further evidence from Box-Cox Engel curves for Sri Lanka
Abstract:
The specification and estimation of Engle curves has drawn much attention
over many years since the earliest attempt of Working (1943). Among the
many approaches, a complete system of Engel curves stood out as more
appealing as it explicitly imposes the important budget constraint in the
allocation of family budgets. Further, extended researches were undertaken
on nonlinear specifications as they are likely to produce results that are
closer to the reality than the linear systems. Beneito (2003) attempted
Box-Cox form of nonlinear specification but ended up estimating a set of
linear equations using seemingly unrelated regression equations method.
The present research extends the previous work on Engle curves in two
ways; first by incorporating key demographic characteristics into the
determination of expenditures in the specification of the Box-Cox form of
nonlinear system, and second by using primary micro data from large
household surveys to estimate the system by nonlinear estimation methods.
Our estimations have produced robust results; the expenditure patterns are
significantly nonlinear and the expenditure patterns are significantly
different for different demographic groups.
Journal: Applied Economics
Pages: 371-385
Issue: 3
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802552346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802552346
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Handle: RePEc:taf:applec:v:43:y:2011:i:3:p:371-385
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of labour: introduction and overview
Abstract:
We provide an introduction and overview to the seven applied financial
studies making up this special theme on labour. The studies cover a wide
range of topics, and employ a variety of applied techniques across a range
of countries.
Journal: Applied Economics
Pages: 387-388
Issue: 4
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2011.555957
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2011.555957
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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:387-388
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Lechner
Author-X-Name-First: Michael
Author-X-Name-Last: Lechner
Author-Name: Rosalia Vazquez-Alvarez
Author-X-Name-First: Rosalia
Author-X-Name-Last: Vazquez-Alvarez
Title: The effect of disability on labour market outcomes in Germany
Abstract:
In this article we analyse the individual effects of becoming disabled on
key aspects of labour market outcomes in Germany. The German Socio
Economic Panel (1984-2002) collects socio-economic and health data. This
data is organized such that the potential problems for such an estimation
that may arise from disability not being a random event are considerably
reduced. Using matching methods, we find a reduction of individual
employment chances of about 9 to 13%, the level depending on the degree of
disability. We find no statistically significant evidence for a reduction
in income or an increase in unemployment due to disability. We interpret
these findings as an indication that the German social security systems
appear to successfully mitigate or at least reduce the economic hardship
that comes with the event of disability.
Journal: Applied Economics
Pages: 389-412
Issue: 4
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802599974
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599974
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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:389-412
Template-Type: ReDIF-Article 1.0
Author-Name: Arnaud Dupuy
Author-X-Name-First: Arnaud
Author-X-Name-Last: Dupuy
Author-Name: Daniel Fernandez-Kranz
Author-X-Name-First: Daniel
Author-X-Name-Last: Fernandez-Kranz
Title: International differences in the family gap in pay: the role of labour market institutions
Abstract:
Using the microdata for 35 countries over the period 1985 to 1994 and
1994 to 2002 we find that labour market institutions are traditionally
associated with more compressed wage structures and a higher family gap.
Our results indicate that these policies reduce the price effect of having
children but aggravate the human capital loss due to motherhood. We also
find evidence that policies that help women to continue in the same job
after childbirth decrease the family gap. Of all the countries we study,
mothers in Southern Europe suffer the biggest family gap and our analysis
indicates that this is due to the bad combination of labour market
policies in these countries. Our results are robust to specification
changes and indicate that the main reason for mothers to lag behind other
women in terms of earnings is the loss of accumulated job market
experience caused by career breaks around childbirth.
Journal: Applied Economics
Pages: 413-438
Issue: 4
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902950580
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902950580
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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:413-438
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Barros
Author-X-Name-First: Carlos
Author-X-Name-Last: Barros
Author-Name: Jean-Pascal Guironnet
Author-X-Name-First: Jean-Pascal
Author-X-Name-Last: Guironnet
Author-Name: Nicolas Peypoch
Author-X-Name-First: Nicolas
Author-X-Name-Last: Peypoch
Title: How to quickly get a job? The transition from higher education to French labour market by a survival model
Abstract:
This article analyses how long former university students stay
unemployed, when searching for a new job after the leaving of the French
higher education. Cox duration models are used to account for the
proportional hypothesis. The main result of this article is that the
worker's recruitment is based more on the choice of the faculty of initial
training than the educational level attainment. Some policy implications
are derived from our results to give some recommendations for individual
job search and policy-makers in education.
Journal: Applied Economics
Pages: 439-448
Issue: 4
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903166251
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166251
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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:439-448
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Amable
Author-X-Name-First: Bruno
Author-X-Name-Last: Amable
Author-Name: Lilas Demmou
Author-X-Name-First: Lilas
Author-X-Name-Last: Demmou
Author-Name: Donatella Gatti
Author-X-Name-First: Donatella
Author-X-Name-Last: Gatti
Title: The effect of employment protection and product market regulation on labour market performance: substitution or complementarity?
Abstract:
This article provides new evidence on the linkages between various forms
of market regulation and joblessness and its components, unemployment and
inactivity. One crucial contribution of this article is the analysis of
the interdependence across Product Market Regulation (PMR) and labour
markets regulation (Employment Protection Legislation (EPL)). With the
help of a dynamic fixed effect model with an interaction term, we estimate
the marginal impact of EPL and PMR at different levels of the other
interacted variable. To cope with problems related to the inclusion of
time-invariant institutional variables in fixed effect models, we present
results of regressions based on a new procedure, specifically designed to
treat slowly changing variables. We build time-series data to account for
the annual evolution of EPL, and use new data for unemployment insurance
net replacement rates. Among other results, we find evidence of a positive
(negative) effect of EPL (PMR) on employment performance as well as of
substitution, rather than complementarity, between the two forms of
regulation.
Journal: Applied Economics
Pages: 449-464
Issue: 4
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903317367
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903317367
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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:449-464
Template-Type: ReDIF-Article 1.0
Author-Name: Rosella Nicolini
Author-X-Name-First: Rosella
Author-X-Name-Last: Nicolini
Title: Labour productivity in Spain: 1977-2002
Abstract:
This study examines the evolution of labour productivity across Spanish
regions during the period from 1977 to 2002. Applying the kernel
technique, we estimate the effects of the transition process on labour
productivity and its main sources. We find that Spanish regions
experienced a major convergence process in labour productivity mostly
driven by human capital in the 1977-1993 period. Conversely, the dynamics
of investment in physical capital appear to be neutral with respect to the
transition dynamics of labour productivity. Finally, from 1995 to 2002, no
dynamic processes seemed to have taken place. Spanish regions exhibit a
persistent relative position with established convergence clubs: the human
capital effect is less important and the investment in physical capital
seems not to have a triggering effect on labour productivity growth.
Journal: Applied Economics
Pages: 465-485
Issue: 4
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903427216
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427216
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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:465-485
Template-Type: ReDIF-Article 1.0
Author-Name: Aekapol Chongvilaivan
Author-X-Name-First: Aekapol
Author-X-Name-Last: Chongvilaivan
Author-Name: Jung Hur
Author-X-Name-First: Jung
Author-X-Name-Last: Hur
Title: Outsourcing, labour productivity and wage inequality in the US: a primal approach
Abstract:
We investigate the linkages among outsourcing activities, labour
productivity and wage inequality for skilled and unskilled labour by
employing a primal approach that involves estimating a nested constant
elasticity of substitution production function, using six-digit North
American Industry Classification System US manufacturing industries from
2002 to 2005. First, we find that general outsourcing and international
outsourcing have a skill-biased impact on labour productivity. However,
the skill-biased impact of general outsourcing on labour productivity is
larger than that of international outsourcing. Second, we find that the
wage gap between skilled and unskilled labour, which is defined as their
marginal productivity gap, can be better explained by general outsourcing
than by international outsourcing. These two results imply that the wage
inequality of US manufacturing industries during 2002-2005 was mainly due
to the skill-biased labour productivity effect of general outsourcing
rather than that of international outsourcing.
Journal: Applied Economics
Pages: 487-502
Issue: 4
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802360302
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360302
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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:487-502
Template-Type: ReDIF-Article 1.0
Author-Name: Laura Romeu Gordo
Author-X-Name-First: Laura
Author-X-Name-Last: Romeu Gordo
Title: Compression of morbidity and the labour supply of older people
Abstract:
This article tests whether there is evidence of compression of morbidity
using Health and Retirement Study (HRS) data and analyses the effects of
this on the labour supply of older people. We find younger cohorts to
suffer less from functional problems than older cohorts at given ages.
Furthermore, we observe that instrumentalized disability has a negative
effect on labour force participation. According to the cohort analysis and
the multivariate analysis, it can be concluded that individuals will be
able to work longer because of the delay in the onset of disability
problems.
Journal: Applied Economics
Pages: 503-513
Issue: 4
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802599941
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599941
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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:503-513
Template-Type: ReDIF-Article 1.0
Author-Name: Lester Hadsell
Author-X-Name-First: Lester
Author-X-Name-Last: Hadsell
Title: Inefficiency in deregulated wholesale electricity markets: the case of the New England ISO
Abstract:
The efficiency of the New England Independent System Operator electricity
market is examined. Using peak hour prices from March 2003 to February
2007, significant differences between Day Ahead (DA) and spot prices are
found, indicating that profitable arbitrage opportunities existed in the
DA market. It is also found that persistence of price volatility is higher
in the DA market, indicating that information is not incorporated into DA
prices as quickly as it is in the spot market.
Journal: Applied Economics
Pages: 515-525
Issue: 5
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802584943
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584943
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Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:515-525
Template-Type: ReDIF-Article 1.0
Author-Name: Koon Nam Lee
Author-X-Name-First: Koon Nam
Author-X-Name-Last: Lee
Title: Forecasting long-haul tourism demand for Hong Kong using error correction models
Abstract:
Forecasting accuracy is particularly important when forecasting tourism
demand on account of the perishable nature of the product. This study
compares a range of forecasting models in the context of predicting annual
tourist flows into Hong Kong from the major long-haul markets of the US,
the UK, Germany and major short-haul markets of China, Japan and Taiwan.
Econometric forecasting models considered included Error Correction Models
(ECMs) based on Permanent Income-Life Cycle (PI-LC) hypothesis (PI-LC ECM)
and alternative cointegration approaches: Engle and Granger (1987),
Johansen (1988), and Ordinary Least Square (OLS) approaches. Both
Autoregressive Integrated Moving Average (ARIMA) and no change model
(hereafter NAIVE) models are used as a benchmark time series model for
accuracy comparisons. It was hypothesized that PI-LC ECM is a better
forecasting model particularly for long-haul tourism demand. The objective
of this article is to investigate whether the application of PI-LC ECM
could improve the forecasting performance of econometric models relative
to time series models. The forecasting results indicate that the PI-LC ECM
based on the Engle-Granger (1987) approach produces more accurate
forecasts than other alternative forecasting models for all long-haul
markets based on Mean Absolute Error (MAE) and Root Mean Square Error
(RMSE) criteria. Overall, PI-LC ECMs produce better forecasts of tourism
demand than the OLS, ARIMA and NAIVE models for all origin markets and all
time horizons.
Journal: Applied Economics
Pages: 527-549
Issue: 5
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802599743
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599743
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Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:527-549
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Artur Tamazian
Author-X-Name-First: Artur
Author-X-Name-Last: Tamazian
Author-Name: Krishna Chaitanya Vadlamannati
Author-X-Name-First: Krishna Chaitanya
Author-X-Name-Last: Vadlamannati
Title: Growth effects of a comprehensive measure of globalization with country-specific time series data
Abstract:
Many studies have estimated the growth effects of globalization where
globalization was measured with a few economic variables, ignoring its
social and political dimensions. Recently, Dreher (2006) has developed a
comprehensive measure of globalization with several variables from the
economic, political and social sectors. He showed, with the panel data
methods, that globalization has positive growth effect implying that
countries with higher globalization grow faster. We argue that 5-year
average growth rates, used in many panel data studies, are inadequate
proxies for the unobservable Steady State Growth Rate (SSGR). Using the
Dreher indices, we extend the Solow (1956) model to derive
country-specific estimates of SSGRs for Singapore, Malaysia, Thailand,
India and the Philippines. Our results show that countries with higher
levels of globalization have higher SSGRs but the growth effects on SSGRs
are smaller than in many studies.
Journal: Applied Economics
Pages: 551-568
Issue: 5
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802534476
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802534476
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Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:551-568
Template-Type: ReDIF-Article 1.0
Author-Name: Rose Cunningham
Author-X-Name-First: Rose
Author-X-Name-Last: Cunningham
Author-Name: Ilan Kolet
Author-X-Name-First: Ilan
Author-X-Name-Last: Kolet
Title: Housing market cycles and duration dependence in the United States and Canada
Abstract:
Housing wealth is a large component of households' total wealth and plays
an important role in aggregate business cycles. In this article, we
explore data on real house price cycles at the aggregate level and city
level for the US and Canada. Using a panel of 137 cities, we examine the
duration and characteristics of housing market cycles in North America. We
find that North American housing cycles are long, averaging 5 years of
expansion and 4 years of contraction. We estimate a discrete time survival
model with a probit specification for house price expansions and
contractions. This model allows us to test for duration dependence. We
find that US housing market expansions have positive duration dependence
since their exit probabilities increase with duration, while contractions
seem to have no duration dependence. Canadian house price cycles did not
exhibit duration dependence. Standard determinants of house prices
(interest rates, income and population growth) are included as controls.
Journal: Applied Economics
Pages: 569-586
Issue: 5
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802584927
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584927
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Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:569-586
Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Ho Chiu
Author-X-Name-First: Yung-Ho
Author-X-Name-Last: Chiu
Author-Name: Yu-Chuan Chen
Author-X-Name-First: Yu-Chuan
Author-X-Name-Last: Chen
Author-Name: Xue-Jie Bai
Author-X-Name-First: Xue-Jie
Author-X-Name-Last: Bai
Title: Efficiency and risk in Taiwan banking: SBM super-DEA estimation
Abstract:
In this study we adopt the two Data Envelopment Analysis (DEA) methods,
including Banker-Charnes-Cooper (BCC) and Slacks-based Measure (SBM) super
efficiency, to investigate whether a bank's technical efficiency index's
results, incorporating account risk and not incorporating account risk,
differ significantly. The information is obtained from 43 Taiwanese banks
for the period 1998 to 2002. We also employ the nonradial and slacks-based
Malmquist Total Factor Productivity (TFP) index to measure the impact of
productivity change on the panel data. Our empirical results from the DEA
approach are summarized as follows: (1) Loan quality factors have an
impact on a bank's efficiency. In general, the bank with a higher degree
of problem loans drops down its efficiency by incorporating account risk;
however, the bank with a lower degree of problem loans increases its
efficiency by incorporating account risk. (2) Super efficiency provides a
good framework for ranking efficient units. (3) Based on the nonradial and
slacks-based Malmquist TFP index, we find that bank productivity has
increased and technical change has improved. (4) In Taiwan, bank with a
higher performance will be more secure.
Journal: Applied Economics
Pages: 587-602
Issue: 5
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802599750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599750
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Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:587-602
Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Eliason
Author-X-Name-First: Marcus
Author-X-Name-Last: Eliason
Title: Income after job loss: the role of the family and the welfare state
Abstract:
That displaced workers suffer long-lasting earnings losses is a stylized
fact, raising the question whether these losses are replaced by other
means. For married men, increased labour supply by the wife may be one
way. Another possibility is that the public welfare system offsets the
same losses. I used a Swedish longitudinal data set containing married
couples where the husband was either employed or made redundant in 1987 by
an establishment closure. There was no evidence that husbands' job loss
positively affected wives' annual earnings. Although husbands' utilization
of unemployment insurance increased significantly, government transfers
including also sickness insurance, disability insurance and means-tested
social benefits, did not fully replace husbands' long-run earnings losses.
Hence, displaced workers seem to suffer also from long-lasting losses in
family income, which in many respects is a better measure of economic
welfare than individual earnings or wages.
Journal: Applied Economics
Pages: 603-618
Issue: 5
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802584968
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584968
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Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:603-618
Template-Type: ReDIF-Article 1.0
Author-Name: Tristan Masters
Author-X-Name-First: Tristan
Author-X-Name-Last: Masters
Author-Name: Roslyn Russell
Author-X-Name-First: Roslyn
Author-X-Name-Last: Russell
Author-Name: Robert Brooks
Author-X-Name-First: Robert
Author-X-Name-Last: Brooks
Title: The demand for creative arts in regional Victoria, Australia
Abstract:
A healthy creative arts industry can contribute significantly to the
economic and social fabric of a community. Unfortunately, regional areas
often suffer from a lack of supply and demand for the creative arts. This
article explores the demand for the creative arts in three regional
locations in Victoria, Australia, using three broad dimensions of demand:
attitudes towards the arts; frequency of participation in the arts and
level of expenditure on the arts. The analysis of demand patterns uses the
general modelling approach of Levy-Garboua and Montmarquette (1996) as a
basis and makes use of the ordered probit class of models for its
statistical analysis. The study confirms that individual levels of demand
are contingent on a range of demographic characteristics and also
identifies factors such as festival attendance and increased past creative
arts expenditure as being important determinants of demand for the arts.
Journal: Applied Economics
Pages: 619-629
Issue: 5
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802584976
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584976
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Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:619-629
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Title: Random walk tests for the Lisbon stock market
Abstract:
This article reports the results of tests on the weak-form market
efficiency applied to the PSI-20 index prices of the Lisbon stock market
from January 1993 to December 2006. As an emerging stock market, it is
unlikely that it is fully information-efficient, but we show that the
level of weak-form efficiency has increased in recent years. We use a
serial correlation test, a runs test, an Augmented Dickey-Fuller (ADF)
test and the multiple variance ratio test proposed by Lo and MacKinlay
(1988) for the hypothesis that the stock market index follows a random
walk. Nontrading or infrequent trading is not an issue because the PSI-20
includes only the 20 most traded shares. The tests are performed using
daily, weekly and monthly returns for the whole period and for five
sub-periods which reflect different trends in the market. We find mixed
evidence, but on the whole, our results show that the Portuguese stock
market index has been approaching a random walk behaviour since 2000, with
a decrease in the serial dependence of returns.
Journal: Applied Economics
Pages: 631-639
Issue: 5
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802584935
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584935
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Handle: RePEc:taf:applec:v:43:y:2011:i:5:p:631-639
Template-Type: ReDIF-Article 1.0
Author-Name: Joakim Westerlund
Author-X-Name-First: Joakim
Author-X-Name-Last: Westerlund
Author-Name: Fredrik Wilhelmsson
Author-X-Name-First: Fredrik
Author-X-Name-Last: Wilhelmsson
Title: Estimating the gravity model without gravity using panel data
Abstract:
This article examines the effects of zero trade on the estimation of the
gravity model using both simulated and real data with a panel structure,
which is different from the more conventional cross-sectional structure.
We begin by showing that the usual log-linear estimation method can result
in highly deceptive inference when some observations are zero. As an
alternative approach, we suggest using the poisson fixed effects
estimator. This approach eliminates the problems of zero trade, controls
for heterogeneity across countries, and is shown to perform well in small
samples.
Journal: Applied Economics
Pages: 641-649
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599784
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599784
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:641-649
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Ricciarelli
Author-X-Name-First: Matteo
Author-X-Name-Last: Ricciarelli
Title: Investment choice and asset allocation of Italian households: the discrete-continuous approach
Abstract:
Financial and monetary policies are considered to be effective depending
on the reaction of financial markets which are increasingly populated by
households. In this article, from intertemporal settings, I derive a
Financial Almost Ideal (FAI) Demand System and I estimate it by
highlighting the determinants of both limited participation to financial
markets and asset substitutability/complementarity in the allocating
stage. Finally, the wealth elasticities provide some further insights on
the low diffusion of the newer and more complex financial instruments
across Italian households.
Journal: Applied Economics
Pages: 651-662
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599800
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599800
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:651-662
Template-Type: ReDIF-Article 1.0
Author-Name: Heru Margono
Author-X-Name-First: Heru
Author-X-Name-Last: Margono
Author-Name: Subhash Sharma
Author-X-Name-First: Subhash
Author-X-Name-Last: Sharma
Author-Name: Kevin Sylwester
Author-X-Name-First: Kevin
Author-X-Name-Last: Sylwester
Author-Name: Usama Al-Qalawi
Author-X-Name-First: Usama
Author-X-Name-Last: Al-Qalawi
Title: Technical efficiency and productivity analysis in Indonesian provincial economies
Abstract:
This article estimates inefficiency and Total Factor Productivity (TFP)
across Indonesian provinces from 1993 to 2000. Indonesia is a large
emerging market economy, but provinces within the country (due to the
island structure of the country) are more distinct from one another
compared to other countries. We use a stochastic frontier methodology to
estimate inefficiency and TFP. We find that TFP fell by an average rate of
7.5% across provinces due to the decrease in technical efficiency. In
fact, the majority of output growth within Indonesia is explained by the
accumulation of inputs. In this sense, economic growth within Indonesia
does not appear to be sustainable without reversing these trends.
Journal: Applied Economics
Pages: 663-672
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599834
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599834
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:663-672
Template-Type: ReDIF-Article 1.0
Author-Name: Faizul Haque
Author-X-Name-First: Faizul
Author-X-Name-Last: Haque
Author-Name: Thankom Gopinath Arun
Author-X-Name-First: Thankom Gopinath
Author-X-Name-Last: Arun
Author-Name: Colin Kirkpatrick
Author-X-Name-First: Colin
Author-X-Name-Last: Kirkpatrick
Title: Corporate governance and capital structure in developing countries: a case study of Bangladesh
Abstract:
This paper investigates the influence of firm-level corporate governance
on the capital structure pattern of non-financial listed firms, using a
case study of Bangladesh. The agency theory suggests that better corporate
governance will reduce agency costs and improve investor confidence, which
in turn will enhance the ability of a firm to gain access to equity
finance, reducing dependence on debt finance. Conversely, the controlling
shareholders of poorly governed firms are likely to prefer debt, in order
to retain absolute ownership and control rights. The OLS regression
framework uses a questionnaire-survey based Corporate Governance Index
(CGI). The study results seem to support agency theory, with a
statistically significant inverse relationship between corporate
governance quality and the total as well as long-term debt ratios.
Journal: Applied Economics
Pages: 673-681
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599909
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599909
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:673-681
Template-Type: ReDIF-Article 1.0
Author-Name: Fethi Oğunc
Author-X-Name-First: Fethi
Author-X-Name-Last: Oğunc
Author-Name: Inci Batmaz
Author-X-Name-First: Inci
Author-X-Name-Last: Batmaz
Title: Estimating the neutral real interest rate in an emerging market economy
Abstract:
This study estimates the neutral real interest rate and output gap
jointly under two different multivariate unobserved components models. In
the analyses, Kalman filter is applied to a small-scale macroeconomic
model of the Turkish economy to estimate the unobserved variables for the
period 1989 to 2005. In addition, two alternative specifications for
neutral real interest rate are exploited in the analyses. The first model
uses a simple random walk model for the neutral rate, whereas the second
one employs more structural specification, which specifically links the
neutral rate with the trend growth rate and the long-term course of the
risk premium by adapting the model proposed by Laubach and Williams (2003)
to allow for small open economy consideration. Model evaluations clearly
indicate the use of more structural specification against random walk
specification. Results point out that the variation in the long-term
course of the risk premium could be an important determinant of the
neutral real interest rate in Turkey. Though there is relatively high
uncertainty surrounding the neutral rate estimates to use them directly in
the policy-making process, estimates appear to be very useful for ex post
monetary policy evaluations.
Journal: Applied Economics
Pages: 683-693
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599768
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599768
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:683-693
Template-Type: ReDIF-Article 1.0
Author-Name: Koi Nyen Wong
Author-X-Name-First: Koi Nyen
Author-X-Name-Last: Wong
Author-Name: Tuck Cheong Tang
Author-X-Name-First: Tuck Cheong
Author-X-Name-Last: Tang
Title: Exchange rate variability and the export demand for Malaysia's semiconductors: an empirical study
Abstract:
This article examines the effects of exchange rate variability on export
demand for semiconductors, which is the largest sub-sector of electronics
industry in Malaysia as reported by Malaysian Industrial Development
Authority (MIDA, 2004). The empirical results, which are estimated based
on the Johansen's multivariate cointegration tests and error-correction
model, suggest that there is a unique long-run relationship among
quantities of export, relative price, real foreign income and real
exchange rate variability. The major finding of this article is that the
variability of real exchange rate has some effect on semiconductor exports
in both the long run and the short run. In the light of rapid advances in
technology in the global markets for electronics products, the findings
are useful to policy makers for the design and target of appropriate
exchange rate and industrial policies to enhance the export
competitiveness of semiconductor industry.
Journal: Applied Economics
Pages: 695-706
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599917
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599917
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:695-706
Template-Type: ReDIF-Article 1.0
Author-Name: Geir Wæhler Gustavsen
Author-X-Name-First: Geir Wæhler
Author-X-Name-Last: Gustavsen
Author-Name: Kyrre Rickertsen
Author-X-Name-First: Kyrre
Author-X-Name-Last: Rickertsen
Title: The effects of taxes on purchases of sugar-sweetened carbonated soft drinks: a quantile regression approach
Abstract:
The consumption of large quantities of Sugar-Sweetened Carbonated Soft
Drinks (SSCSD) may lead to obesity, which is associated with health
problems such as diabetes, cardiac diseases and mental health problems.
The effects of increasing the Value Added Tax (VAT) on purchases of SSCSD
are estimated. Obesity is more likely among heavy drinkers than among
light or moderate drinkers. Therefore, the effects on high- and
low-purchasing households are estimated by using Quantile Regressions
(QRs) on Norwegian household purchase data. Since many households did not
purchase SSCSD during each survey period, censored as well as ordinary QRs
are used. Our results suggest that a VAT increase from 13 to 25% will have
the highest percentage effect among low-purchasing households but the
absolute effect is highest among high-purchasing households.
Low-purchasing households will reduce their purchases by about 5 L while
the reduction is almost 20 L among high-purchasing households. However,
the effects among high-purchasing households are not statistically
significant from zero. A reduction of 5 L corresponds ceteris paribus to
an annual reduction of about 0.3 kg of body weight.
Journal: Applied Economics
Pages: 707-716
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599776
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599776
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:707-716
Template-Type: ReDIF-Article 1.0
Author-Name: Joo-Suk Lee
Author-X-Name-First: Joo-Suk
Author-X-Name-Last: Lee
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Author-Name: Seung-Jun Kwak
Author-X-Name-First: Seung-Jun
Author-X-Name-Last: Kwak
Title: Modelling R&D expenditure data with zero observations: two-equation model
Abstract:
This article attempts to analyse the determinants of firms' Research and
Development (R&D) expenditures in Korea by considering the business
environment after the economic crisis in 1997. In addition, to take into
account zero R&D expenditure, this article employed a two-equation model
unlike models used in other studies. This method incorporates a two-level
decision structure: the participation decision and the decision on the
amount to spend once the issue of participation has been decided.
According to the estimation results, while the proposition that larger
firms are more active in R&D is true, the proposition that firms that
possess market power are more active in R&D is not true for Korea.
Technical cooperation among Korean firms seems to be less active than in
other countries. In addition, the results indicate that foreign investment
stimulates the firms' R&D expenditure. Furthermore, a number of factors
were found to play a role in promoting firms' R&D activities: the external
conditions of the firms' R&D activities, including the location, other
firms' R&D activities in the same industry, support from the government
and technical support from research institutes.
Journal: Applied Economics
Pages: 717-727
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599792
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599792
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:717-727
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Jia-Hsi Weng
Author-X-Name-First: Jia-Hsi
Author-X-Name-Last: Weng
Title: Is the secularization hypothesis valid? A panel data assessment for Taiwan
Abstract:
The secularization thesis is based on the idea that a country becomes
more secular as it becomes richer and more industrialized. In order to
investigate whether this hypothesis is valid, we examine the relationship
between religion in Taiwan and economic development across 23 counties by
adopting the panel data approach for the period 1998 to 2003. We select
six religious activity proxy variables and five economic development
variables in a cross-county panel data framework. The evidence indicates
that the ratio of females to males has a significantly positive effect and
that the literacy rate and population density each have a significantly
negative effect on the religious variables. Finally, except for the
Christian culture, the unemployment rate has a positive effect on the
religious variables. Our findings thus support the view that the religious
secularization hypothesis is valid in Taiwan.
Journal: Applied Economics
Pages: 729-745
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599826
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599826
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:729-745
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Williams
Author-X-Name-First: Jonathan
Author-X-Name-Last: Williams
Author-Name: Nicolas Peypoch
Author-X-Name-First: Nicolas
Author-X-Name-Last: Peypoch
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Title: The Luenberger indicator and productivity growth: a note on the European savings banks sector
Abstract:
We employ the Luenberger productivity indicator to estimate productivity
growth and its decomposition into technical change and efficiency change
components for savings banks sectors in 10 EU countries between 1996 and
2003. The Luenberger indicator requires less restrictive assumptions than
standard nonparametric productivity indexes, and it allows the assumption
of profit maximization to be made for sample firms. We estimate average
productivity growth in the savings banks sector to be 2.78% per annum and
driven almost entirely by technical change. Whilst the general results
confirm earlier findings, this study is one of the earliest to identify
cross-border differences in productivity growth in the savings banks
sector.
Journal: Applied Economics
Pages: 747-755
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599859
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599859
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:747-755
Template-Type: ReDIF-Article 1.0
Author-Name: Joao Dias
Author-X-Name-First: Joao
Author-X-Name-Last: Dias
Author-Name: Vitor Mendes Magrico
Author-X-Name-First: Vitor Mendes
Author-X-Name-Last: Magrico
Title: The impact of resource conditions and environmental uncertainty on inter-firm alliance strategies
Abstract:
The resource dependence theory and the resource-based view have been put
forward in order to explain inter-firm alliance strategies. According to
these approaches, the main driver for alliance formation is the internal
resource condition of the firm and the need to acquire external resources.
We argue that resource motivation is moderated by perceived environmental
uncertainty. First, we conceptualize how perceived environmental
uncertainty and resource conditions independently affect the probability
of firms to develop alliance strategies. Then, we analyse how the role of
resource conditions is affected by environmental uncertainty. Finally, we
test our point of view using a sample of Portuguese firms.
Journal: Applied Economics
Pages: 757-765
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599867
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599867
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:757-765
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chung Chang
Author-X-Name-First: Ming-Chung
Author-X-Name-Last: Chang
Author-Name: Jin-Li Hu
Author-X-Name-First: Jin-Li
Author-X-Name-Last: Hu
Title: Inconsistent preferences in environmental protection investment and the central government's optimal policy
Abstract:
Environmental protection plans cannot succeed without full cooperation
among related units. However, inconsistent investment preferences toward
environmental protection increase the damage to the environment. This
article employs the contract mechanism to analyse environmental protection
effects when the central government directly subsidizes the local
governments. The results reveal that subsidies from the central government
are not only unable to solve the problem of the inconsistent investment
preferences among the central and local governments but also induce the
free-riding behaviour of local governments. Because of the free-riding
behaviour of the local governments, there is no such equilibrium in which
the central government prefers the sequential investment mode while the
local governments prefer the simultaneous investment mode.
Journal: Applied Economics
Pages: 767-772
Issue: 6
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599891
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599891
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Handle: RePEc:taf:applec:v:43:y:2009:i:6:p:767-772
Template-Type: ReDIF-Article 1.0
Author-Name: William Crowder
Author-X-Name-First: William
Author-X-Name-Last: Crowder
Author-Name: Pieter de Jong
Author-X-Name-First: Pieter
Author-X-Name-Last: de Jong
Title: Does investment lead to greater output? A panel error-correction model analysis
Abstract:
In this study we attempt to determine the direction of causality between
fixed investment spending and output. A literature has been developed
which examines this causal structure. The results have been anything but
consistent. De Long and Summers (1991) find strong evidence of the
traditional causal relationship from investment to output growth. But
Blomstrom et al. (1996) find just the opposite. One problem with these
studies is that each fails to recognize the implied long-run relationship
between fixed investment and output such that a Vector Autoregressive
Representation (VAR) in these variables should be modelled as an error
correction mechanism. We employ panel cointegration techniques on data
from the Penn World Tables 6.1 covering 98 countries over 40 years. Our
results suggest that investment and output are cointegrated and that the
direction of causality generally runs in both directions. However, we find
that in African- and low-income nations the direction of causality runs
from output to investment, supportive of the findings by Blomstrom et al.
(1996). This pattern is found in the short run as well as in the long run.
Journal: Applied Economics
Pages: 773-785
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599982
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599982
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:773-785
Template-Type: ReDIF-Article 1.0
Author-Name: Jennifer Rice
Author-X-Name-First: Jennifer
Author-X-Name-Last: Rice
Title: The influence of managed care on generic prescribing rates: an analysis of HMO physicians
Abstract:
Retail expenditures on prescription drugs continue to grow annually by
double digits, while the share of prescriptions dispensed as generics
remains relatively constant. Efforts to curtail rising drug expenditures
have been exhibited by Managed Care Organizations (MCOs), yet drug
expenditures continue to rise. Using the National Ambulatory Medical Care
Survey (NAMCS) for 1997-2000, this study examines how managed care,
specifically Health Maintenance Organizations (HMOs), influence the
physician's decision to prescribe the generic version of a multi-source
drug. The findings show that HMO physicians are not significantly more
likely to prescribe generic drugs than non-HMO physicians. Among HMO
physicians, different cost reduction tools effect generic prescribing
behaviour in different ways, with, the size of the effect depending on the
patient and physician relationship with the HMO.
Journal: Applied Economics
Pages: 787-796
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600061
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600061
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:787-796
Template-Type: ReDIF-Article 1.0
Author-Name: Max Nielsen
Author-X-Name-First: Max
Author-X-Name-Last: Nielsen
Author-Name: Frank Jensen
Author-X-Name-First: Frank
Author-X-Name-Last: Jensen
Author-Name: Jari Setala
Author-X-Name-First: Jari
Author-X-Name-Last: Setala
Author-Name: Jarno Virtanen
Author-X-Name-First: Jarno
Author-X-Name-Last: Virtanen
Title: Causality in demand: a co-integrated demand system for trout in Germany
Abstract:
This article focuses on causality in demand. A methodology where
causality is imposed and tested within an empirical co-integrated demand
model, not prespecified, is suggested. The methodology allows different
causality of different products within the same demand system. The
methodology is applied to fish demand. On the German market for farmed
trout and substitutes, it is found that supply sources, i.e. aquaculture
and fishery, are not the only determinant of causality. Storing, tightness
of management and aggregation level of integrated markets might also be
important. The methodological implication is that more explicit focus on
causality in demand analyses provides improved information. The results
suggest that frozen trout forms part of a large European whitefish market,
where prices of fresh trout are formed on a relatively separate market.
Redfish is a substitute on both markets. The policy implication is that
increased production of trout causes a downward pressure on fresh trout
prices, but frozen trout prices remain relatively unaffected.
Journal: Applied Economics
Pages: 797-809
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600038
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600038
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:797-809
Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Weiss
Author-X-Name-First: Matthias
Author-X-Name-Last: Weiss
Author-Name: Alfred Garloff
Author-X-Name-First: Alfred
Author-X-Name-Last: Garloff
Title: Skill-biased technological change and endogenous benefits: the dynamics of unemployment and wage inequality
Abstract:
In this article, we study the effect of skill-biased technological change
on unemployment and wage inequality in the presence of a link between
social benefits and average income. In this case, an increase in the
productivity of skilled workers, and hence their wage, leads to an
increase in average income and hence in benefits. The increased fallback
income, in turn, makes unskilled workers ask for higher wages. As higher
wages are not justified by corresponding productivity increases,
unemployment rises. Generally, we show that skill-biased technological
change leads to increasing unemployment of the unskilled and to a
moderately increasing wage inequality when benefits are endogenous. The
model provides a theoretical explanation for diverging dynamics in wage
inequality and unemployment under different social benefits regimes.
Analysing the social legislation in 14 countries, we find that benefits
are linked to the evolution of average income in Continental Europe but
not in the US and the UK. Given this institutional difference, our model
predicts that skill-biased technological change leads to rising
unemployment in Continental Europe and rising wage inequality in the US
and the UK.
Journal: Applied Economics
Pages: 811-821
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599933
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599933
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:811-821
Template-Type: ReDIF-Article 1.0
Author-Name: Felicitas Nowak-Lehmann D.
Author-X-Name-First: Felicitas
Author-X-Name-Last: Nowak-Lehmann D.
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Sebastian Vollmer
Author-X-Name-First: Sebastian
Author-X-Name-Last: Vollmer
Author-Name: Inmaculada Martinez-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Martinez-Zarzoso
Title: Modelling the dynamics of market shares in a pooled data setting: econometric and empirical issues
Abstract:
The objective of this article is twofold. First, it is to study the
applicability of the widely used Autoregressive Distributed Lag Model
(ARDL) in a pooled data setting. Second, it is to analyse Chile's market
shares in the EU during the period 1988 to 2002, pointing to application
problems that might jeopardize the model and searching for estimation
methods that deal with the problem of inter-temporal and cross-sectional
correlation of the disturbances. To estimate the coefficients of the ARDL
model, Feasible Generalized Least Squares (FGLS) is utilized within the
Three-Stage Least Squares (3SLS) and the nonstandard Generalized Method of
Moments (GMM) frameworks. A computation of errors is added to highlight
the susceptibility of the model to problems related to the underlying
model assumptions.
Journal: Applied Economics
Pages: 823-835
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599925
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599925
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:823-835
Template-Type: ReDIF-Article 1.0
Author-Name: James Gander
Author-X-Name-First: James
Author-X-Name-Last: Gander
Title: Equity valuation under Bull and Bear market regimes in South East Asia firms: a switching regression approach
Abstract:
A switching regression approach is used to analyse the market equity
value of firms in the three South East Asia countries with a comparison to
Japan. Two regimes are used to optimally sort the firms in a given country
based on a switching function using profit rate (net income to book
equity) as its variable. The regimes are identified as a Bear security
market or a Bull security market depending on the value of the profit
rate. Two financial ratios are used in the regime regressions. It was
found that the optimum scaled switch point separating the Bulls from the
Bears for the countries was a positive profit rate ranging between 6 and
24%. The notion that a zero or negative profit rate identifies a Bear
market is not supported. In general, the results across countries and for
the long-term debt ratio were quite consistent. The post-Asian financial
crisis of 1997 had a depressing effect on firm market equity values,
regardless of the market type and the country. The Bulls and the Bears are
not cousins when it comes to their different reactions to the long-term
debt ratio and their different, relative, adverse responses to the
financial crisis.
Journal: Applied Economics
Pages: 837-844
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599966
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599966
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:837-844
Template-Type: ReDIF-Article 1.0
Author-Name: Kristian Jonsson
Author-X-Name-First: Kristian
Author-X-Name-Last: Jonsson
Title: Time-specific disturbances in a panel stationarity test
Abstract:
In this article, we investigate the performance of a panel data
stationarity test when cross-sectional correlation is modelled by a
time-specific factor. Size distortions, that occur especially when the
number of cross sections is small, are documented. To eliminate these
distortions, a new set of critical values is supplied. When investigating
the rejection frequency under the alternative hypothesis, it is found that
the panel data stationarity test that uses the supplied critical values
maintain good power characteristics even when only a subset of the
cross-sectional units have a unit root.
Journal: Applied Economics
Pages: 845-853
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802599958
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599958
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:845-853
Template-Type: ReDIF-Article 1.0
Author-Name: Eva Moreno-Galbis
Author-X-Name-First: Eva
Author-X-Name-Last: Moreno-Galbis
Author-Name: Francois-Charles Wolff
Author-X-Name-First: Francois-Charles
Author-X-Name-Last: Wolff
Title: Evidence on new technologies and wage inequality in France
Abstract:
Using individual data from the French Labour Force Survey and the
Complementary Survey on Working Conditions for 1998, we analyse earnings
inequalities along the wage distribution between workers using novel
Information and Communication Technologies (ICT) at their job and those
not using them. We estimate quantile regressions with technological
dummies and carry out a decomposition analysis, both at the aggregate
level and by occupations. At the aggregate level, most of the wage gap
between both populations is explained by the divergence in their labour
characteristics. In jobs where ICT are not very diffused, the
technological premium is larger than in jobs characterized by a large
presence of novel technologies. Whereas in the former type of jobs, the
technological premium is mainly justified by a divergence in the labour
market characteristics between ICT users and nonusers, in positions
characterized by a wide presence of novel technologies the technological
premium responds rather to a divergence in the returns to identical
characteristics.
Journal: Applied Economics
Pages: 855-872
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600004
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600004
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:855-872
Template-Type: ReDIF-Article 1.0
Author-Name: Takashi Matsuki
Author-X-Name-First: Takashi
Author-X-Name-Last: Matsuki
Author-Name: Ryoichi Usami
Author-X-Name-First: Ryoichi
Author-X-Name-Last: Usami
Title: China's regional convergence in panels with multiple structural breaks
Abstract:
This study investigates the existence of regional convergence of per
capita outputs in China from 1952 to 2004, particularly focusing on
considering the presence of multiple structural breaks in the
provincial-level panel data. First, the panel-based unit root test that
allows for the occurrence of multiple breaks at various break dates across
provinces is developed; this test is based on the p-value combination
approach suggested by Fisher (1932). Next, the test is applied to China's
provincial real per capita outputs to examine the regional convergence in
China. To obtain the p-values of unit root tests for each province, which
are combined to construct the panel unit root test, this study assumes
three Data Generating Processes (DGPs): a driftless random walk process,
an Autoregressive Moving Average (ARMA) process and an Autoregression (AR)
process with cross-sectionally dependent errors in Monte Carlo simulation.
The results obtained from this study reveal that the convergence of the
provincial per capita outputs exists in each of the three geographically
classified regions-the Eastern, Central and Western regions-of China.
Journal: Applied Economics
Pages: 873-890
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600012
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:873-890
Template-Type: ReDIF-Article 1.0
Author-Name: Mats Wilhelmsson
Author-X-Name-First: Mats
Author-X-Name-Last: Wilhelmsson
Author-Name: Rune Wigren
Author-X-Name-First: Rune
Author-X-Name-Last: Wigren
Title: The robustness of the causal and economic relationship between construction flows and economic growth: evidence from Western Europe
Abstract:
Our main objective is to analyse whether we have a problem of parameter
heterogeneity across countries and over time in the estimation of the
relationship between infrastructure investments and economic growth. The
research approach concerning causality and the estimating of the long-run
equilibrium is based on the error-correction model. The problem of
parameter heterogeneity is handled by the use of interaction terms. The
result indicates that residential construction Granger causes Gross
Domestic Product (GDP) in the short and long run and it seems likely that
the interaction term indicating high unemployment do add some explanation
power to the model. This is not true when it comes to infrastructural and
other building construction and its impact on economic growth. A high
housing stock per capita seems to reduce the short-run effect. This
implies that residential construction seems to have a larger effect if the
accumulated residential stock is on a low level. The speed of adjustment
to long-run equilibrium differs considerably between a country with a low
residential capital stock and a country with a high-capital stock.
Moreover, high owner occupation rates seem to be associated with a
stronger relationship between residential construction and economic
growth.
Journal: Applied Economics
Pages: 891-900
Issue: 7
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600020
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Handle: RePEc:taf:applec:v:43:y:2009:i:7:p:891-900
Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Masakure
Author-X-Name-First: Oliver
Author-X-Name-Last: Masakure
Author-Name: John Cranfield
Author-X-Name-First: John
Author-X-Name-Last: Cranfield
Author-Name: Spencer Henson
Author-X-Name-First: Spencer
Author-X-Name-Last: Henson
Title: Factors affecting the incidence and intensity of standards certification evidence from exporting firms in Pakistan
Abstract:
This article explores the incidence and intensity of certification of
Pakistani exporting firms across a range of quality assurance programs.
Using firm-level data, the firm's certification status is modelled using
Heckman's two-step procedure. The first-stage results using a probit model
show that the likelihood of certification is determined by the sector, the
firm's awareness of trade standards, the level to which the firm's markets
are diversified, external pressure for certification and the firm's
primary export market. The intensity of certification is treated as the
number of standards a firm has invested in, which can be seen as ordered
into distinct categories, such that an ordered probit model can be
applied, correcting for sample selection bias. The results show that the
number of standards to which a firm is certified is influenced by firm
size, a firm's primary export markets, level of awareness of trade
standards and level of market diversification. Overall, the results
suggest that certification can be enhanced through increased private and
institutional incentives, such as reducing transactions costs in the
fisheries and agro-processing sectors, as well as increased regulatory
enforcements in supply chains and support for raising the technical
capacity of the sector.
Journal: Applied Economics
Pages: 901-915
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600103
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600103
File-Format: text/html
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:901-915
Template-Type: ReDIF-Article 1.0
Author-Name: Nuno Alves
Author-X-Name-First: Nuno
Author-X-Name-Last: Alves
Author-Name: Jose Brandao de Brito
Author-X-Name-First: Jose Brandao de
Author-X-Name-Last: Brito
Author-Name: Sandra Gomes
Author-X-Name-First: Sandra
Author-X-Name-Last: Gomes
Author-Name: Joao Sousa
Author-X-Name-First: Joao
Author-X-Name-Last: Sousa
Title: The transmission of monetary policy and technology shocks in the euro area
Abstract:
This article analyses the response of a set of euro area macroeconomic
variables to monetary policy and technology shocks based on structural
Vector Auto-regressions (VARs). The data set runs from 1970:1 until 2006:4
and includes a novel long-run series for hours worked per capita in the
euro area. We find that real macroeconomic variables follow a hump-shaped
response after monetary policy shocks and jump on impact after technology
shocks. We also provide evidence that hours worked fall after a positive
technology shock. These conclusions are robust to different sample periods
and specifications of the variables.
Journal: Applied Economics
Pages: 917-927
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600186
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600186
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:917-927
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Fullerton
Author-X-Name-First: Thomas
Author-X-Name-Last: Fullerton
Author-Name: Osvaldo Miranda
Author-X-Name-First: Osvaldo
Author-X-Name-Last: Miranda
Title: Borderplex brand name medicine price differences
Abstract:
Relatively high brand name pharmaceutical prices have led many US
residents to cross the border into Mexico as 'medical tourists'. To
examine the savings potentially available to consumers willing to cross
into Mexico, data are collected and analysed for brand name prescription
medicines sold in El Paso, Texas and Ciudad Juarez, Mexico. Retail
pharmacy prices are generally lower on the south side of the border and
substantial savings result for some medicines. For some products, however,
shelf prices are lower on the north side of the border.
Journal: Applied Economics
Pages: 929-939
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600194
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600194
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:929-939
Template-Type: ReDIF-Article 1.0
Author-Name: Torben Schubert
Author-X-Name-First: Torben
Author-X-Name-Last: Schubert
Author-Name: Hariolf Grupp
Author-X-Name-First: Hariolf
Author-X-Name-Last: Grupp
Title: Tests and confidence intervals for a class of scientometric, technological and economic specialization ratios
Abstract:
In economic, scientometric and innovation research, often so-called
specialization indices are used. These indices measure comparative
strengths or weaknesses as well as specialization profiles of the
observation units with respect to certain criteria, such as patenting and
publication or trade activities. They allow question like: is Germany
specialized in the export of motor vehicles? Or is the UK specialized in
biotech patents? Unfortunately, little is known about their statistical
properties, which makes valid inferencing difficult. In this article we
prove asymptotic normality for a certain class of scientometric,
technological and some economic, though nonmonetary, specialization
indices. We provide asymptotic confidence intervals and demonstrate in an
example how to obtain statistically sound results. We will also address
the problem of normalization of these indicators. All procedures proposed
are provided in an add on package for R statistical environment.
Journal: Applied Economics
Pages: 941-950
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600160
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600160
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:941-950
Template-Type: ReDIF-Article 1.0
Author-Name: Conchita D'Ambrosio
Author-X-Name-First: Conchita
Author-X-Name-Last: D'Ambrosio
Author-Name: Joseph Deutsch
Author-X-Name-First: Joseph
Author-X-Name-Last: Deutsch
Author-Name: Jacques Silber
Author-X-Name-First: Jacques
Author-X-Name-Last: Silber
Title: Multidimensional approaches to poverty measurement: an empirical analysis of poverty in Belgium, France, Germany, Italy and Spain, based on the European panel
Abstract:
This article has three goals. First, we wish to compare three
multidimensional approaches to poverty and check to what extent they
identify the same households as poor. Second, we aim at better
understanding the determinants of poverty by estimating logit regressions
with five categories of explanatory variables: size of the household, age
of the head of the household, her gender, marital status and status at
work. Third, we introduce a decomposition procedure proposed recently in
the literature, the so-called Shapley decomposition, in order to determine
the exact marginal impact of each of the categories of explanatory
variables. Our empirical analysis is based on data made available by the
European Community Household Panel (ECHP). We used its third wave and
selected five countries: Belgium, France, Germany, Italy and Spain.
Journal: Applied Economics
Pages: 951-961
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600129
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:951-961
Template-Type: ReDIF-Article 1.0
Author-Name: Hong-Kyun Kim
Author-X-Name-First: Hong-Kyun
Author-X-Name-Last: Kim
Title: Does sample selection bias affect the effect of family background on the returns to schooling? Evidence from Korea
Abstract:
This article examines the effect of family background on the returns to
schooling in Korea. In doing so, sample selection bias is controlled, as
the probability of being employed is affected by the schooling of family
members. The results of this study are different from previous studies,
which did not consider sample selection bias. While the effect of family
background on the returns to schooling was obvious in previous studies, it
is weakened with the control of sample selection bias. This phenomenon is
particularly strong for the wife. Moreover, controlling sample selection
bias increases the downward bias due to measurement error. Thus it is
concluded from these findings that sample selection bias should be
controlled to accurately estimate the effect of family background on the
returns to schooling.
Journal: Applied Economics
Pages: 963-972
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600111
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600111
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:963-972
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Greenidge
Author-X-Name-First: Kevin
Author-X-Name-Last: Greenidge
Author-Name: Carlos Holder
Author-X-Name-First: Carlos
Author-X-Name-Last: Holder
Author-Name: Alvon Moore
Author-X-Name-First: Alvon
Author-X-Name-Last: Moore
Title: Current account deficit sustainability: the case of Barbados
Abstract:
This article investigates the sustainability of the current account
deficit in Barbados over the period 1960 to 2006. Various unit root and
cointegration techniques are employed to determine whether the country is
satisfying its Intertemporal Budget Constraint (IBC). The cointegration
regressions suggest that the current account of Barbados is sustainable
and that deviations from long-run equilibrium between real exports and
imports are corrected in the short-run with imports making the adjustment.
Journal: Applied Economics
Pages: 973-984
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600095
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600095
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:973-984
Template-Type: ReDIF-Article 1.0
Author-Name: W. Robert Reed
Author-X-Name-First: W. Robert
Author-X-Name-Last: Reed
Author-Name: Haichun Ye
Author-X-Name-First: Haichun
Author-X-Name-Last: Ye
Title: Which panel data estimator should I use?
Abstract:
This study employs Monte Carlo experiments to evaluate the performances
of a number of common panel data estimators when serial correlation and
cross-sectional dependence are both present. It focuses on fixed effects
models with less than 100 cross-sectional units and between 10 and 25 time
periods (such as are commonly employed in empirical growth studies).
Estimator performance is compared on two dimensions: (i) root mean square
error and (ii) accuracy of estimated confidence intervals. An innovation
of our study is that our simulated panel data sets are designed to look
like 'real-world' panel data. We find large differences in the
performances of the respective estimators. Further, estimators that
perform well on efficiency grounds may perform poorly when estimating
confidence intervals and vice versa. Our experimental results form the
basis for a set of estimator recommendations. These are applied to 'out of
sample' simulated panel data sets and found to perform well.
Journal: Applied Economics
Pages: 985-1000
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600087
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600087
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:985-1000
Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Jones
Author-X-Name-First: Melanie
Author-X-Name-Last: Jones
Title: Disability, employment and earnings: an examination of heterogeneity
Abstract:
This article uses information from an ad hoc module on disability in the
2002 UK Labour Force Survey to identify the heterogeneity that exists
within the disabled group and examine its impact on labour market
outcomes. After controlling for a range of personal characteristics, the
type, severity, duration and cause of the disability are found to be
important determinants of employment, but there is less evidence to
support the influence of within group heterogeneity on earnings.
Journal: Applied Economics
Pages: 1001-1017
Issue: 8
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600053
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600053
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Handle: RePEc:taf:applec:v:43:y:2009:i:8:p:1001-1017
Template-Type: ReDIF-Article 1.0
Author-Name: Par Sjolander
Author-X-Name-First: Par
Author-X-Name-Last: Sjolander
Title: A stationary unbiased finite sample ARCH-LM test procedure
Abstract:
Engle's (1982) Autoregressive Conditional Heteroscedasticity-Lagrange
Multiplier (ARCH-LM) test is the undisputed standard test to detect ARCH.
In this article, Monte Carlo (MC) simulations are used to demonstrate that
the test's statistical size is biased in finite samples. Two complementing
remedies to the related problems are proposed. One simple solution is to
simulate new unbiased critical values for the ARCH-LM test. A second
solution is based on the observation that for econometrics practitioners,
detection of ARCH is generally followed by remedial modelling of this
time-varying heteroscedasticity by the most general and robust model in
the ARCH family; the Generalized ARCH (GARCH(1,1)) model. If the GARCH
model's stationarity constraints are violated, as in fact is very often
the case, obviously, we can conclude that ARCH-LM's detection of
conditional heteroscedasticity has no or limited practical value.
Therefore, formulated as a function of whether the GARCH model's
stationarity constraints are satisfied or not, an unbiased and more
relevant two-stage ARCH-LM test is specified. If the primary objectives of
the study are to detect and remedy the problems of conditional
heteroscedasticity, or to interpret GARCH parameters, the use of this
article's new two-stage procedure, 2-Stage Unbiased ARCH-LM (2S-UARCH-LM),
is strongly recommended.
Journal: Applied Economics
Pages: 1019-1033
Issue: 8
Volume: 43
Year: 2010
X-DOI: 10.1080/00036840802600046
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600046
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Handle: RePEc:taf:applec:v:43:y:2010:i:8:p:1019-1033
Template-Type: ReDIF-Article 1.0
Author-Name: Mikael Bask
Author-X-Name-First: Mikael
Author-X-Name-Last: Bask
Author-Name: Jens Lundgren
Author-X-Name-First: Jens
Author-X-Name-Last: Lundgren
Author-Name: Niklas Rudholm
Author-X-Name-First: Niklas
Author-X-Name-Last: Rudholm
Title: Market power in the expanding Nordic power market
Abstract:
We examine if the Nordic power market, Nord Pool, has been competitive or
if electricity suppliers have had market power. Specifically, since the
evolution from national markets to a multi-national and largely
deregulated power market has taken place stepwise, we also examine how the
degree of market power has evolved during this integration process. The
Bresnahan-Lau method together with weekly data during 1996-2004 are used
in the analysis, which shows that electricity suppliers have had small,
but statistically significant, market power, but that the market power has
been reduced as the Nord Pool area has expanded.
Journal: Applied Economics
Pages: 1035-1043
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600269
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600269
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1035-1043
Template-Type: ReDIF-Article 1.0
Author-Name: Monica Escaleras
Author-X-Name-First: Monica
Author-X-Name-Last: Escaleras
Author-Name: Charles Register
Author-X-Name-First: Charles
Author-X-Name-Last: Register
Title: Ethnic tensions and social infrastructure
Abstract:
Ethnic tensions may restrict economic growth through a number of
infrastructure channels. We extend this literature by (1) using a broad
measure of ethnic tensions, (2) considering a variety of measures of
social infrastructure for a panel of 87 countries across 16 years and (3)
explicitly addressing the endogeneity of ethnic tensions. We find ethnic
tensions significantly retard the formation of social infrastructure and,
by extension, impose an unnecessary cap on growth and development. As
such, governments would well-serve the interests of their populaces by
enacting policies, conducting politics and carrying out their daily
functions in ways that serve to dampen ethnic tensions, rather than the
reverse, which too often seems the case.
Journal: Applied Economics
Pages: 1045-1057
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600152
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600152
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1045-1057
Template-Type: ReDIF-Article 1.0
Author-Name: David Vera
Author-X-Name-First: David
Author-X-Name-Last: Vera
Title: How robust is the Fed reaction function to changes in the output-gap specification?
Abstract:
Using alternative measures of the output gap, we estimate a
forward-looking monetary policy reaction function, similar to those
estimated by Clarida et al. (1998, 2000), for Greenspan's period as a
chairman of the Board of Governors of the US Federal Reserve System. We
are able to show that the reaction function that considers an output gap
based on the industrial production index instead of the unemployment rate
better captures the behaviour of the Federal Reserve during Greenspan's
period.
Journal: Applied Economics
Pages: 1059-1065
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600236
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600236
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1059-1065
Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Musshoff
Author-X-Name-First: Oliver
Author-X-Name-Last: Musshoff
Author-Name: Martin Odening
Author-X-Name-First: Martin
Author-X-Name-Last: Odening
Author-Name: Wei Xu
Author-X-Name-First: Wei
Author-X-Name-Last: Xu
Title: Management of climate risks in agriculture-will weather derivatives permeate?
Abstract:
It is a matter of common knowledge that weather represents the major
source of uncertainty in crop production. It is to be expected that
weather fluctuations will increase in the future due to climate change.
Traditionally, farmers tried to protect themselves against weather-related
yield variations by buying insurances. More recently, there has been a
discussion regarding the use of weather derivatives to safeguard against
volumetric risks. Although weather derivatives display advantages over
traditional insurances, there is only a relatively small market for these
products in agriculture. This is partly attributed to the fact that it is
unclear whether and to what extent weather derivatives are a useful
instrument of risk management in agriculture. This study applies real
yield and weather data from Northeast Germany in order to quantify the
risk-reducing effect that can be achieved in wheat production by using
precipitation options. To do so stochastic simulation is used. The hedging
effectiveness is controlled by the contract design (index, strike level,
tick size). However, the local basis risk and the geographical basis risk
remain with the farmer. We separate both causes of basis risk and reveal
the extent of each. This enables conclusions regarding the design of
weather derivatives; thus the question dealt with here is relevant both
for farmers and for potential sellers of weather derivatives.
Journal: Applied Economics
Pages: 1067-1077
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600210
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600210
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1067-1077
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Crespo Cuaresma
Author-X-Name-First: Jesus
Author-X-Name-Last: Crespo Cuaresma
Author-Name: Gerhard Reitschuler
Author-X-Name-First: Gerhard
Author-X-Name-Last: Reitschuler
Author-Name: Maria Antoinette Silgoner
Author-X-Name-First: Maria Antoinette
Author-X-Name-Last: Silgoner
Title: On the effectiveness and limits of fiscal stabilizers
Abstract:
The smoothing impact of fiscal stabilizers (proxied by government
expenditures) on business cycle volatility is studied for a panel of
European Union (EU) countries in the period 1970-1999. Special emphasis is
put on the investigation of possible nonlinearities in the relationship
between Gross Domestic Product (GDP) growth volatility and fiscal
stabilizers. The results show that the business cycle volatility smoothing
effect of fiscal stabilizers may revert at high levels. The results hold
when using government revenues as a proxy for fiscal stabilizers.
Journal: Applied Economics
Pages: 1079-1086
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600251
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600251
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1079-1086
Template-Type: ReDIF-Article 1.0
Author-Name: Roberta Colavecchio
Author-X-Name-First: Roberta
Author-X-Name-Last: Colavecchio
Author-Name: Declan Curran
Author-X-Name-First: Declan
Author-X-Name-Last: Curran
Author-Name: Michael Funke
Author-X-Name-First: Michael
Author-X-Name-Last: Funke
Title: Drifting together or falling apart? The empirics of regional economic growth in post-unification Germany
Abstract:
The objective of this article is to address the question of convergence
across German districts in the first decade after German unification by
drawing out and emphasizing some stylized facts of regional per capita
income dynamics. We achieve this by employing nonparametric techniques
which focus on the evolution of the entire cross-sectional income
distribution. In particular, we follow a distributional approach to
convergence based on kernel density estimation and implement a number of
tests to establish the statistical significance of our findings. This
article finds that the relative income distribution appears to be
stratifying into a trimodal/bimodal distribution.
Journal: Applied Economics
Pages: 1087-1098
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600178
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600178
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1087-1098
Template-Type: ReDIF-Article 1.0
Author-Name: Wook Sohn
Author-X-Name-First: Wook
Author-X-Name-Last: Sohn
Author-Name: Hyosoon Choi
Author-X-Name-First: Hyosoon
Author-X-Name-Last: Choi
Title: Banks' lending decisions after loan acquisitions: do banks favour pre-existing relationships?
Abstract:
This article examines the lending decisions of Korean banks after they
acquire loan portfolios from failed banks. We find that a firm's
pre-existing relationships positively affect the continuation of those
relationships, and that pre-existing relationships negatively impact
increases in loan size, once those relationships are maintained. These
results suggest that banks have a conflict of interest that comes with
pre-existing lending relationships, and that bank quality does not
necessarily convey the risk classes of its client firms.
Journal: Applied Economics
Pages: 1099-1112
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600202
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600202
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1099-1112
Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Yi Chen
Author-X-Name-First: Wen-Yi
Author-X-Name-Last: Chen
Author-Name: Chunhuei Chi
Author-X-Name-First: Chunhuei
Author-X-Name-Last: Chi
Author-Name: Yu-Hui Lin
Author-X-Name-First: Yu-Hui
Author-X-Name-Last: Lin
Title: The willingness to pay for the health care under Taiwan's national health insurance system
Abstract:
In this study, we utilized the nested multinomial logit model to estimate
the Willingness To Pay (WTP) values for different National Health
Insurance (NHI) coverage plans in Taiwan. The WTP value for having care
from clinics in a Hospital Care Only (HCO) plan is NT$178 (US$6) per
person/month. The WTP value for having care from hospitals in a Clinic
Care Only (CCO) plan is NT$1342 (US$43) per person/month. The WTP value
for the NHI with a Universal Coverage (UC) is NT$1540 (US$49) per
person/month. The figure NT$1540 (US$49) is equivalent to 8.77% of monthly
household income, much higher than the new premium rate of the new NHI tax
(2.5-4% of monthly household income) proposed by the Taiwan's government.
Our result suggests that Taiwan's government may increase the new premium
rate further in order to make Taiwan's NHI financially more sustainable.
Journal: Applied Economics
Pages: 1113-1123
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600228
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1113-1123
Template-Type: ReDIF-Article 1.0
Author-Name: Jani Beko
Author-X-Name-First: Jani
Author-X-Name-Last: Beko
Author-Name: Timotej Jagric
Author-X-Name-First: Timotej
Author-X-Name-Last: Jagric
Title: Demand models for direct mail and periodicals delivery services: results for a transition economy
Abstract:
This article examines the demand for services of the Slovenian national
postal operator for the direct mail and periodicals market and separately
for the direct mail market. The main factors of the demand are found to be
various price indicators with respect to individual market, two income
series and the variable of economic environment. The results of our
empirical analysis suggest that the price elasticity of demand on both
markets is below zero. The autonomy in price increases is limited due to
positive cross-price elasticity of demand for direct mail with regard to
price fluctuations for TV commercials. Substitution effects on the direct
mail market are even more evident with regard to price fluctuations for
advertisements in magazines and daily papers. An additional finding is
that the demand on both markets varies seasonally in all models estimated
by us. Finally, coefficients of income elasticity of demand for direct
mail services show that the total number of mail deliveries on the direct
mail market increases faster than the retail revenue in real terms.
Journal: Applied Economics
Pages: 1125-1138
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600244
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600244
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1125-1138
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Eisenhauer
Author-X-Name-First: Joseph
Author-X-Name-Last: Eisenhauer
Author-Name: Luigi Ventura
Author-X-Name-First: Luigi
Author-X-Name-Last: Ventura
Title: Interval risk aversion
Abstract:
The conventional measures of absolute and relative risk aversion are
appropriate for measuring preferences locally, but because they rely on
differential calculus, they cannot accurately capture attitudes towards
high-stakes risks involving potentially large changes in wealth.
Eisenhauer (2006) has recently proposed an alternative approach which
avoids the use of calculus. The present article extends that work in two
ways. First, the Pratt-Arrow coefficient of absolute risk aversion is
generalized into a measure of interval risk aversion, suitable for
analysing preferences over risks of any magnitude, and a corresponding
interval measure of relative risk aversion is constructed from preference
and risk parameters, without explicit reference to initial wealth or
income. Second, the new measures are applied to survey data from the Bank
of Italy, to illustrate their empirical applicability to large-scale risk.
Journal: Applied Economics
Pages: 1139-1150
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600285
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600285
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1139-1150
Template-Type: ReDIF-Article 1.0
Author-Name: B. Mak Arvin
Author-X-Name-First: B.
Author-X-Name-Last: Mak Arvin
Author-Name: Byron Lew
Author-X-Name-First: Byron
Author-X-Name-Last: Lew
Title: Does democracy affect environmental quality in developing countries?
Abstract:
This article examines the impact of democracy on environmental conditions
in a large sample of developing countries for the period 1976-2003. This
relationship is explored empirically using three indicators of
environmental quality: carbon dioxide emissions, water pollution and
deforestation damage. We find evidence that democracy is conducive to
environmental improvement but that this result depends on the measure of
the environmental quality that is used. We also find remarkable
differences in results across our different sub-samples. The conclusion
therefore is that there is no uniform relationship between democracy and
the state of the environment.
Journal: Applied Economics
Pages: 1151-1160
Issue: 9
Volume: 43
Year: 2009
X-DOI: 10.1080/00036840802600277
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600277
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Handle: RePEc:taf:applec:v:43:y:2009:i:9:p:1151-1160
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Boileau
Author-X-Name-First: Martin
Author-X-Name-Last: Boileau
Author-Name: Marc-Andre Letendre
Author-X-Name-First: Marc-Andre
Author-X-Name-Last: Letendre
Title: Inventories, sticky prices, and the persistence of output and inflation
Abstract:
Post-war business cycle fluctuations of output and inflation are
remarkably persistent. Many recent sticky-price models, however, grossly
underpredict this persistence. We assess whether adding inventories to a
standard sticky-price model raises the persistence of output and
inflation. For this addition, we consider a shopping-cost model. In the
model, consumers find shopping activities costly, and the cost of shopping
depends on the stock of goods available. In this context, producers manage
inventories to smooth production and to affect the cost of shopping. We
find that the shopping-cost model generates a persistence for output and
inflation that matches the persistence observed in the post-1985 US data.
Journal: Applied Economics
Pages: 1161-1174
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600343
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600343
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1161-1174
Template-Type: ReDIF-Article 1.0
Author-Name: Hilary Ingham
Author-X-Name-First: Hilary
Author-X-Name-Last: Ingham
Author-Name: Mike Ingham
Author-X-Name-First: Mike
Author-X-Name-Last: Ingham
Author-Name: Jan Herbst
Author-X-Name-First: Jan
Author-X-Name-Last: Herbst
Title: Local unemployment in Poland: rural-urban contrasts
Abstract:
Unemployment continues to bedevil Poland, albeit with striking
sub-national differences, which this article seeks to explain using random
effects error component two-stage estimation for the country's NUTS 4
(nomenclature des unites territoriales statistiques) level powiats. Given
the economy's peculiar configuration under communism, with its large
private agricultural sector, emphasis is placed on rural-urban
differences. While less densely populated areas do suffer higher
unemployment rates, the effect is moderated by hidden unemployment in
farming. On the other hand, powiats that housed the ex-state farms suffer
a negative long-term legacy. Other notable results include an evident
positive impact of foreign capital on local labour market fortunes.
Journal: Applied Economics
Pages: 1175-1186
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600293
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600293
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1175-1186
Template-Type: ReDIF-Article 1.0
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Author-Name: Naoko Hamori
Author-X-Name-First: Naoko
Author-X-Name-Last: Hamori
Title: An empirical analysis of real exchange rate movements in the euro
Abstract:
This study uses a long-run Structural Vector Autoregressive (SVAR)
approach to identify the sources of real exchange rate fluctuations in the
euro. The empirical results indicate that real shocks play a dominant role
in explaining the real exchange rate fluctuations in the euro. This
implies that the best approach for policymakers toward improving the
competitiveness of the EU is to focus on improvements in the real economy,
such as improvements in efficiency, technologies and productivity.
Journal: Applied Economics
Pages: 1187-1191
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600319
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600319
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1187-1191
Template-Type: ReDIF-Article 1.0
Author-Name: Hajime Katayama
Author-X-Name-First: Hajime
Author-X-Name-Last: Katayama
Author-Name: Hudan Nuch
Author-X-Name-First: Hudan
Author-X-Name-Last: Nuch
Title: A game-level analysis of salary dispersion and team performance in the national basketball association
Abstract:
Using game-level panel data on the National Basketball Association (NBA),
we examine the causal effect of within-team salary dispersion on team
performance. We exploit three measures of salary dispersion and examine
the effect at three levels: whether the outcome of the game is influenced
by salary dispersion among (1) players participating in the current game
(active players), (2) players who played more than half of their team's
games in a season (regular and occasional players) and (3) the entire
player population. Regardless of the measures used, we find that salary
dispersion does not influence team performance.
Journal: Applied Economics
Pages: 1193-1207
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600335
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600335
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1193-1207
Template-Type: ReDIF-Article 1.0
Author-Name: Ursula Jaenichen
Author-X-Name-First: Ursula
Author-X-Name-Last: Jaenichen
Author-Name: Gesine Stephan
Author-X-Name-First: Gesine
Author-X-Name-Last: Stephan
Title: The effectiveness of targeted wage subsidies for hard-to-place workers
Abstract:
Targeted wage subsidies paid to employers are an important element of
active labour market policies in Germany. This article uses propensity
score matching to investigate their effect on the employment and
unemployment rates of subsidized hard-to-place workers. In a first
scenario, we estimate the average treatment effect of a subsidy on
previously unemployed individuals. A second scenario analyses the effects
of a subsidy on employment probabilities conditional on taking-up
employment. The third scenario investigates the additional effect of a
subsidy on individuals, who have participated in a short-term training
measure beforehand. Summing up and in line with the literature, the
results show that subsidies have a favourable effect on the employment
prospects of participants.
Journal: Applied Economics
Pages: 1209-1225
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600426
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600426
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1209-1225
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Jiang
Author-X-Name-First: Christine
Author-X-Name-Last: Jiang
Author-Name: Jang-Chul Kim
Author-X-Name-First: Jang-Chul
Author-X-Name-Last: Kim
Author-Name: Robert Wood
Author-X-Name-First: Robert
Author-X-Name-Last: Wood
Title: A comparison of volatility and bid-ask spread for NASDAQ and NYSE after decimalization
Abstract:
We compare volatility and transaction costs for National Association of
Securities Dealers Automated Quotations (NASDAQ) and New York Stock
Exchange (NYSE) firms after decimalization. Using the data of May 2001,
our study includes several large samples are matched based on key
determinants of volatility and transaction costs. Our findings suggest
that volatility on NASDAQ is much higher than on NYSE even after the
recent market reforms and decimalization. Transaction costs measured by
quoted and effective spreads remain significantly higher on NASDAQ than on
NYSE, and these differences cannot be attributed to the differences in the
characteristics of the stocks traded in the two markets. In addition, the
frequency of small (large) trades inside the quotes is significantly
greater (lower) on NYSE than on NASDAQ.
Journal: Applied Economics
Pages: 1227-1239
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600376
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600376
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1227-1239
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Ledesma-Rodriguez
Author-X-Name-First: Francisco
Author-X-Name-Last: Ledesma-Rodriguez
Author-Name: Manuel Navarro-Ibanez
Author-X-Name-First: Manuel
Author-X-Name-Last: Navarro-Ibanez
Author-Name: Jorge Perez-Rodriguez
Author-X-Name-First: Jorge
Author-X-Name-Last: Perez-Rodriguez
Author-Name: Simon Sosvilla-Rivero
Author-X-Name-First: Simon
Author-X-Name-Last: Sosvilla-Rivero
Title: Implicit bands in the yen/dollar exchange rate
Abstract:
This article attempts to identify implicit exchange rate regimes for the
yen/dollar exchange rate. To that end, we apply a sequential procedure
that considers both the dynamics of exchange rates and central bank
interventions to data covering the period from 1971 to 2003. Our results
suggest that implicit bands existed in two subperiods: April-December 1980
and March-October 1987, the latter coinciding with the Louvre Accord.
Furthermore, the study of the credibility of such implicit bands indicates
the high degree of confidence attributed by economic agents to the
evolution of the yen/dollar exchange rate within the detected implicit
band rate, thus lending further support to the relevance of such implicit
bands.
Journal: Applied Economics
Pages: 1241-1255
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600384
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600384
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1241-1255
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Henrickson
Author-X-Name-First: Kevin
Author-X-Name-Last: Henrickson
Title: Spatial competition and geographic grain transportation demand on the Mississippi and Illinois rivers
Abstract:
Using a model of spatial competition between grain elevators, I estimate
a model of transportation demand for grain elevators located along the
Mississippi and Illinois rivers. This analysis uses a unique set of
interview data collected by the Tennessee Valley Authority (TVA). Both the
theory and the data suggest that there are geographic patterns in barge
demand elasticity-patterns which are empirically uncovered using an
endogenous switch point model. These results are of central importance to
policy-makers as they call into question assumptions made by the models
currently used for measuring the benefits of inland waterway improvements.
Journal: Applied Economics
Pages: 1257-1269
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600392
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600392
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1257-1269
Template-Type: ReDIF-Article 1.0
Author-Name: Shishir Saxena
Author-X-Name-First: Shishir
Author-X-Name-Last: Saxena
Title: Technology and spillovers: evidence from Indian manufacturing microdata
Abstract:
This article finds that technology stocks and spillovers have
significantly affected the output of Indian manufacturing firms over the
period 1994 to 2006. The technology of a firm is measured, as embodied in
its recent stock of plant and machinery, as well as generated through its
own R&D. Moreover, investments in both these types of capital by a firm,
also generate significant knowledge spillovers, for all other firms in
that industry.
Journal: Applied Economics
Pages: 1271-1287
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600301
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600301
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1271-1287
Template-Type: ReDIF-Article 1.0
Author-Name: Sunday Iyare
Author-X-Name-First: Sunday
Author-X-Name-Last: Iyare
Author-Name: Winston Moore
Author-X-Name-First: Winston
Author-X-Name-Last: Moore
Title: Financial sector development and growth in small open economies
Abstract:
This article investigates the Granger causal relationship between
financial development and economic growth for four small open economies
over the period 1960 to 2003. Both long- and short-run Granger causality
tests are used to assess the finance-growth nexus. The results suggest
that there is a positive association between financial development and
growth in all countries. However, the long-run causality tests show that
growth tends to lead financial development in Singapore and Jamaica,
financial development leads growth in Trinidad and Tobago and there is a
bidirectional link in Barbados. These results therefore suggest that
cross-country studies could overstate the impact of financial development
on growth, since they ignore differences - even in relatively homogenous
groups.
Journal: Applied Economics
Pages: 1289-1297
Issue: 10
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600350
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600350
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Handle: RePEc:taf:applec:v:43:y:2011:i:10:p:1289-1297
Template-Type: ReDIF-Article 1.0
Author-Name: Veronique Genre
Author-X-Name-First: Veronique
Author-X-Name-Last: Genre
Author-Name: Karsten Kohn
Author-X-Name-First: Karsten
Author-X-Name-Last: Kohn
Author-Name: Daphne Momferatou
Author-X-Name-First: Daphne
Author-X-Name-Last: Momferatou
Title: Understanding inter-industry wage structures in the euro area
Abstract:
This article focuses on the euro area wage structure and its potential
determinants from a sectoral viewpoint. Merging information from the
Organization for Economic Co-operation and Development (OECD) Structural
Analysis database with data from the EU Labour Force Survey, we construct
a cross-country panel of 22 industries in eight euro area countries for
1991-2002. Data inspection confirms the existence of a fairly stable
inter-industry wage structure that is similar across countries. We then
apply panel data techniques to identify factors explaining inter-industry
wage differentials in the euro area. Both workforce characteristics (e.g.
human capital variables) and firm-related characteristics (e.g. capital
intensity, productivity) contribute significantly. However, considerable
wage heterogeneity across sectors remains. Idiosyncratic sector and
country specifics, reflecting different socio-cultural and institutional
backgrounds, appear to bear a major role. While our empirical analysis
only uses direct evidence from workforce and firm-related characteristics,
we also relate the remaining heterogeneity to institutional
characteristics, based on related literature.
Journal: Applied Economics
Pages: 1299-1313
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.537637
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.537637
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1299-1313
Template-Type: ReDIF-Article 1.0
Author-Name: Evangelos Falaris
Author-X-Name-First: Evangelos
Author-X-Name-Last: Falaris
Title: Misclassification of the dependent variable in binary choice models: evidence from five Latin American countries
Abstract:
Misclassification of the dependent variable in binary choice models can
result in inconsistency of the parameter estimates. I estimate probit
models that treat misclassification probabilities as estimable parameters
for three labour market outcomes: formal sector employment, pension
contribution and job change. I use Living Standards Measurement Study
(LSMS) data from Nicaragua, Peru, Brazil, Guatemala and Panama. I find
that there is a significant misclassification in 11 of the 16 cases that I
investigate. If misclassification is present but is ignored, estimates of
the probit parameters and their SEs are biased toward zero. In most cases,
predicted probabilities of the outcomes are significantly affected by
misclassification of the dependent variable. Even a moderate degree of
misclassification can have substantial effects on the estimated parameters
and on many of the predictions.
Journal: Applied Economics
Pages: 1315-1327
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600483
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600483
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1315-1327
Template-Type: ReDIF-Article 1.0
Author-Name: Glynn Tonsor
Author-X-Name-First: Glynn
Author-X-Name-Last: Tonsor
Author-Name: Ted Schroeder
Author-X-Name-First: Ted
Author-X-Name-Last: Schroeder
Title: Multivariate forecasting of a commodity portfolio: application to cattle feeding margins and risk
Abstract:
Traditionally, economists have utilized univariate approaches to forecast
prices, even for firms operating in multicommodity environments. This
research improves the way in which managerial decision making is analysed
by developing a model better representing the price risks and
opportunities faced by firms that produce using a portfolio of
commodities. Using the situation of cattle feedlot investors and managers
as an example, this is accomplished by recognizing the multivariate (live
cattle, feeder cattle and corn prices) situation that feedlots operate in
and employing corresponding multivariate simulation techniques. Evaluation
suggests that properly modelling the cattle feeding margin as a
multivariate set of prices significantly improves the accuracy of
forecasting future feeding margin values realized in the cash market. The
model also suggests incorporating both implied and historical time-varying
volatility information when forecasting margin variability. Implications
for other multicommodity situations and future research are also provided.
Journal: Applied Economics
Pages: 1329-1339
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600517
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600517
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1329-1339
Template-Type: ReDIF-Article 1.0
Author-Name: Randall Kesselring
Author-X-Name-First: Randall
Author-X-Name-Last: Kesselring
Author-Name: Dale Bremmer
Author-X-Name-First: Dale
Author-X-Name-Last: Bremmer
Title: Setting the target for the federal funds rate: the determinants of Fed behaviour
Abstract:
This article analyses the factors the Federal Open Market Committee
(FOMC) considers in setting the target for the federal funds rate. The
sample consists of 262 FOMC meetings between 1983 and 2005. Statistical
results indicate that the Fed's target is inversely related to the
unemployment rate and directly related to several measures of expected
inflation. Technical factors such as the number of days since the last
target change, the size and direction of the previous target change and
the gap between the actual federal funds rate and its targeted value were
also statistically significant explanatory variables. Estimations were
performed using Ordinary Least Squares (OLS), censored regression and two
types of ordered probit; but the results proved to be robust regardless of
the statistical technique used.
Journal: Applied Economics
Pages: 1341-1349
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600459
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600459
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1341-1349
Template-Type: ReDIF-Article 1.0
Author-Name: L. Bettendorf
Author-X-Name-First: L.
Author-X-Name-Last: Bettendorf
Author-Name: E. Dijkgraaf
Author-X-Name-First: E.
Author-X-Name-Last: Dijkgraaf
Title: The bicausal relation between religion and income
Abstract:
In this article the relation between religion and income is investigated
using a micro-dataset for the Netherlands. Religion is measured by
religious membership and by participation. Instead of estimating a
religion equation and an income equation separately, joint regression is
preferred since this generally yields more efficient estimates. Following
the single-equation approach, both religious measures are found to
decrease income significantly and income is found to affect religion
negatively. However, these cross-effects become insignificant once the
equations are estimated simultaneously. In contrast, the effects of
socio-economic characteristics on religion and income hardly differ
between the approaches.
Journal: Applied Economics
Pages: 1351-1363
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600442
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600442
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1351-1363
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Pierdzioch
Author-X-Name-First: Christian
Author-X-Name-Last: Pierdzioch
Author-Name: Jan-Christoph Rulke
Author-X-Name-First: Jan-Christoph
Author-X-Name-Last: Rulke
Author-Name: Georg Stadtmann
Author-X-Name-First: Georg
Author-X-Name-Last: Stadtmann
Title: Do professional economists' forecasts reflect Okun's law? Some evidence for the G7 countries
Abstract:
Using survey data for the G7 countries, we report that professional
economists' forecasts of changes in the unemployment rate and the growth
rate of real output are consistent with Okun's law. Professional
economists do not believe in potential asymmetries in Okun's law over the
business cycle. They believe in the classic linear version of Okun's law.
Journal: Applied Economics
Pages: 1365-1373
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600400
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600400
File-Format: text/html
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1365-1373
Template-Type: ReDIF-Article 1.0
Author-Name: Ying Xie
Author-X-Name-First: Ying
Author-X-Name-Last: Xie
Author-Name: David Giles
Author-X-Name-First: David
Author-X-Name-Last: Giles
Title: A survival analysis of the approval of US patent applications
Abstract:
We model the length of time that it takes for a patent application to be
granted by the US Patent and Trademark Office (USPTO), conditional on the
patent actually being awarded eventually. Survival analysis is applied and
both the nonparametric Kaplan-Meier and parametric accelerated failure
time models are used to analyse the data. We find that the number of
claims a patent makes, the number of citations a patent makes, the
patent's technological category, and the type of applicant all have
significant effects on the duration that a patent is under consideration.
A log-normal survival model is the preferred parametric specification, and
the results suggest that the hazard function is nonmonotonic over time.
Journal: Applied Economics
Pages: 1375-1384
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600418
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600418
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1375-1384
Template-Type: ReDIF-Article 1.0
Author-Name: Eiji Yamamura
Author-X-Name-First: Eiji
Author-X-Name-Last: Yamamura
Title: Effects of social norms and fractionalization on voting behaviour in Japan
Abstract:
This article uses prefecture-level panel data from Japan, spanning the
period 1989-2003, to examine the influence of social norms and
fractionalization on voting behaviour. The key findings obtained from
analysis via the fixed effects estimation, which controls for unobserved
prefecture-specific fixed effects, are as follows: (1) the voter turnout
is higher in close-knit communities, indicating that social norms enhance
voting; (2) fractionalization, from both economic and generational
standpoints, lowers the voter turnout and (3) a lack of social capital can
lead to the distribution of votes being spread thinly among the competing
parties.
Journal: Applied Economics
Pages: 1385-1398
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600434
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600434
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1385-1398
Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Hsuan Chen
Author-X-Name-First: Yi-Hsuan
Author-X-Name-Last: Chen
Author-Name: Kehluh Wang
Author-X-Name-First: Kehluh
Author-X-Name-Last: Wang
Author-Name: Anthony Tu
Author-X-Name-First: Anthony
Author-X-Name-Last: Tu
Title: Default correlation at the sovereign level: evidence from some Latin American markets
Abstract:
Using the eruption of Argentina debt crisis in 2001 as a natural
experiment, we investigated the correlated default at the sovereign level
for some Latin American countries. Daily closing market quotes for
sovereign Credit Default Swaps (CDS) of Argentina, Brazil, Mexico and
Venezuela were obtained from CreditTrade database. Using copula approach,
we observed increased dependences among sovereign CDS markets during the
crisis period. Their dependence structures were found to be asymmetric.
Moreover, the degree of credit contagion was related to the
creditworthiness of the country. This study also discussed the
implications of these findings for policymakers.
Journal: Applied Economics
Pages: 1399-1411
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600467
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600467
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1399-1411
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brent
Author-X-Name-First: Robert
Author-X-Name-Last: Brent
Title: An implicit price of a DALY for use in a cost-benefit analysis of ARVs
Abstract:
This article uses the revealed preference approach to estimate the price
for a Disability Adjusted Life Year (DALY) implied by grant decisions by
the Global Fund for AIDS, tuberculosis (TB) and malaria (GFATM). A
cost-benefit criterion is used that requires the DALY price exceed the
cost-effectiveness ratio. The estimated price was $6300 for a DALY saved
from any disease, but it was $11 900 from a DALY saved specifically from
HIV/AIDS. Estimates of the cost-effectiveness ratios of Antiretroviral
Drug Therapies (ARVs) in the literature were examined. At the DALY prices
implicit by GFATM decisions, ARVs would be socially worthwhile.
Journal: Applied Economics
Pages: 1413-1421
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600475
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600475
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1413-1421
Template-Type: ReDIF-Article 1.0
Author-Name: Yoonkyung Yuh
Author-X-Name-First: Yoonkyung
Author-X-Name-Last: Yuh
Author-Name: Jaehwan Yang
Author-X-Name-First: Jaehwan
Author-X-Name-Last: Yang
Title: Optimal annuity planning and longevity risk: evidence from Korea
Abstract:
This study examines annuity planning using an optimization framework. An
optimization problem is formulated with the objective of maximizing the
lifetime utility of consumption and bequestable wealth, and benchmark
cases for Korean households are applied. We extend the optimization model
suggested in Gupta and Li (2007) by incorporating realistic constraints,
such as installment premium contracts, deferred annuity payments and the
possibility of borrowing. Further, we have considered a variety of
longevity cases. The results confirmed that an annuity is an effective
tool for managing longevity risk, and annuitization timing is crucial for
the maximization of lifetime utility.
Journal: Applied Economics
Pages: 1423-1433
Issue: 11
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670762
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670762
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Handle: RePEc:taf:applec:v:43:y:2011:i:11:p:1423-1433
Template-Type: ReDIF-Article 1.0
Author-Name: Pimbucha Rusmevichientong
Author-X-Name-First: Pimbucha
Author-X-Name-Last: Rusmevichientong
Author-Name: Harry Kaiser
Author-X-Name-First: Harry
Author-X-Name-Last: Kaiser
Title: Are there halo effects of US grain export promotion?
Abstract:
The objective of the research reported in this article is to examine both
the own and cross effects of US export promotion for US and non-US grains.
We focus on two previously neglected dimensions of the cross effects.
First, we examine whether a halo effect (i.e. promotion for one US
commodity positively effects demand for another US commodity) for US
commodities exists. Second, we look at whether US grain export promotion
has public goods characteristics, that is does US grain promotion have a
halo effect on grain demand for other countries? We use a Linear
Approximation of an Almost Ideal Demand System (LA/AIDS) model for US and
non-US rice, wheat and sorghum that include US export promotion as one of
the explanatory variables. Our goal is to provide further empirical
evidence for the halo effect issue by using US grains as a case study
since this sector has not been previously explored. In addition to
estimating own and cross export promotion elasticities, the magnitude of
cross effects on US market share for grain commodities are simulated for
several policy scenarios involving alternative export promotion levels.
Journal: Applied Economics
Pages: 1435-1446
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600525
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600525
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1435-1446
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Agnolucci
Author-X-Name-First: Paolo
Author-X-Name-Last: Agnolucci
Author-Name: Andrew Venn
Author-X-Name-First: Andrew
Author-X-Name-Last: Venn
Title: Industrial energy intensities in the UK: is there a deterministic or stochastic difference among sectors?
Abstract:
Energy intensities of industrial subsectors differ widely due to
differences in the final product and ultimately in the production process.
The aim of this article is to assess whether these differences are
stochastic or deterministic. The analysis is implemented for a number of
British industrial subsectors over the 1970-2004 and 1978-2004 time
periods. It turns out that the results of the tests are very influenced by
whether one allows for the presence of structural breaks. Only when
modelling structural breaks, one can conclude that the evidence in favour
of the long-term differences being deterministic outbalances the evidence
pointing to their nature being stochastic. This supports the adoption of
policy instruments which are applied across productive sectors in a way
which is not affected by the short-run evolution of the sectors.
Journal: Applied Economics
Pages: 1447-1462
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600541
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600541
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1447-1462
Template-Type: ReDIF-Article 1.0
Author-Name: David Hauner
Author-X-Name-First: David
Author-X-Name-Last: Hauner
Author-Name: Manmohan Kumar
Author-X-Name-First: Manmohan
Author-X-Name-Last: Kumar
Title: Interest rates and budget deficits revisited-evidence from the G7 countries
Abstract:
This article revisits whether budget deficits affect interest rates, and
broadens the literature by examining whether financial globalization has
changed this relationship. A structural model of interest determination is
extended to account for the fact that official capital flows are
determined differently than private flows and is estimated for a 1960-2005
G7 panel. We find that deficits have a significant but small effect on
long-term rates, but that this result depends on the fiscal concept used.
Moreover, we find no evidence of structural change in interest rate
determination in the recent decades, with the exception of an increased
impact of insurance-related capital inflows in recent years.
Journal: Applied Economics
Pages: 1463-1475
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600574
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600574
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1463-1475
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyong Zheng
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Zheng
Author-Name: David Zimmer
Author-X-Name-First: David
Author-X-Name-Last: Zimmer
Title: Modelling bivariate count distributions with finite mixture models: application to health care demand of married couples
Abstract:
Count measures of health care utilization are often correlated with other
measures of utilization. In addition, utilization measures display a high
proportion of zero observations. This article attempts to accommodate both
data features in one model, with an application to medical care usage of
husbands and wives. A bivariate count representation is used to model
dependence between husbands' and wives' utilizations, and a finite mixture
specification accommodates the problem of excess zeros. Results show that
married couples are characterized by two distinct subpopulations according
to the intensity of utilization of the wife.
Journal: Applied Economics
Pages: 1477-1483
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600509
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600509
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1477-1483
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Jarrett
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Jarrett
Author-Name: Zhenzhen Sun
Author-X-Name-First: Zhenzhen
Author-X-Name-Last: Sun
Title: Evidence and explanations for the association among six Asian (Pacific-Basin) financial markets
Abstract:
We explore, explain and extend previous research on the relations between
large and small stock returns in six Asian (Pacific-Basin) nations and the
association among the same six Asian financial markets. Our purpose is to
provide evidence of the cross-autocorrelation of stock returns in a more
recent time period than analysed before by others. Evidence is brought to
bear as to the theoretical explanations for stock market behaviour of
Pacific-Basin nations including those with large financial markets, i.e.
Japan and Hong Kong, and those with small financial markets, i.e. Thailand
and Malaysia. No other study collects and analyses stock market behaviour
in these nations for the recent time period. In addition, we study results
from a sample of time periods and compare them. We indicate the validity
of the conclusion made on studies of earlier time periods which conflict
with various explanations of stock market behaviours. Relations between
large and small size firms' stock returns as well as the influence of
lagged returns provide the subject matter of this study.
Journal: Applied Economics
Pages: 1485-1496
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600533
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600533
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1485-1496
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Gervais
Author-X-Name-First: Jean-Philippe
Author-X-Name-Last: Gervais
Title: Disentangling nonlinearities in the long- and short-run price relationships: an application to the US hog/pork supply chain
Abstract:
Increased concentration at the retail, food processing and farm input
manufacturing levels has brought increased attention to patterns in
retail-to-farm price spreads. Most studies documenting asymmetric price
transmission focus on nonlinear error correction processes, as opposed to
the current study which analyses potential nonlinearities in the long-run
relationship between the farm and retail prices. The null hypothesis of
nonlinearity in the long-run relationship between farm and retail prices
in the US hog/pork supply chain is rejected in favour of a Smooth
Transition Cointegration (STC) framework. The STC framework predicts
downward price stickiness in retail prices. The predicted residuals of the
nonlinear model are used to investigate whether it is possible to
disentangle nonlinearity in the long-run price relationship from
nonlinearity in the adjustment towards the long-run equilibrium. The
results underline the importance of testing for linearity in the long-run
price relationship before modelling nonlinearity in short-run dynamics.
Journal: Applied Economics
Pages: 1497-1510
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600558
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600558
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1497-1510
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgia Giovannetti
Author-X-Name-First: Giorgia
Author-X-Name-Last: Giovannetti
Author-Name: Giorgio Ricchiuti
Author-X-Name-First: Giorgio
Author-X-Name-Last: Ricchiuti
Author-Name: Margherita Velucchi
Author-X-Name-First: Margherita
Author-X-Name-Last: Velucchi
Title: Size, innovation and internationalization: a survival analysis of Italian firms
Abstract:
Firms' survival is often seen as crucial for economic growth and
competitiveness. This article focuses on business demography of Italian
firms, using an original database, obtained by matching and merging to
gain the intersection of three firm level datasets. This database allows
us to simultaneously consider the effect of size, technology, trade, FDIs
and innovation on firms' survival probability. We show that size and
technological level positively affect the likelihood of survival.
Internationalized firms show higher failure risk: on average competition
is stronger in international markets, forcing firms to be more efficient.
However, large internationalized firms are more likely to 'survive'. An
Italian internationalized firm to be successful and to survive, should be
high-tech, large and innovative.
Journal: Applied Economics
Pages: 1511-1520
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600566
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600566
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1511-1520
Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Kumar Mishra
Author-X-Name-First: Ashok Kumar
Author-X-Name-Last: Mishra
Author-Name: Krishna Paudel
Author-X-Name-First: Krishna
Author-X-Name-Last: Paudel
Title: Estimating permanent income and wealth of the US farm households
Abstract:
Farm households are unique in the way they derive income when compared to
nonfarm households. Farm operators and spouses have dual income sources,
from farm and off-farm activities. Further, farm households on an average
possess higher wealth than nonfarm households. This article estimates
permanent income for the US farm households using data from a large
national farm level survey. The estimated income is then used to identify
the determinants of wealth accumulation by the US farm households. Results
confirm that permanent income is closely related to age of the operator,
education, occupation, farm size, location and number of earners in the
household. Along with age, permanent income is a significant determinant
of household wealth. It was also found that the wealth-income curve is
nonlinear, upward sloping, and convex. Hausman's specification test
indicates that variations in farm household wealth is better explained by
estimated permanent income than observed total household income. Off-farm
income cannot be treated as residual or transitory income.
Journal: Applied Economics
Pages: 1521-1533
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600582
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600582
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1521-1533
Template-Type: ReDIF-Article 1.0
Author-Name: Kent Messer
Author-X-Name-First: Kent
Author-X-Name-Last: Messer
Author-Name: Harry Kaiser
Author-X-Name-First: Harry
Author-X-Name-Last: Kaiser
Author-Name: Collin Payne
Author-X-Name-First: Collin
Author-X-Name-Last: Payne
Author-Name: Brian Wansink
Author-X-Name-First: Brian
Author-X-Name-Last: Wansink
Title: Can generic advertising alleviate consumer concerns over food scares?
Abstract:
Consumers consistently express concern about the risk of new variant
Creutzfeldt-Jakob Disease (nvCJD) from eating beef. Given several US cows
infected with Bovine Spongiform Encephalopathy (BSE) (mad cow disease) and
recent findings that the path of transmission of nvCJD remains unknown,
the potential for a devastating scare hangs over the beef industry. This
experimental research evaluates the ability of industry advertising
messages to offset the effects of media messages related to the lack of
food safety. Using a nonstudent subject pool, this research finds that
beef industry advertising significantly alleviates US consumer safety
concerns.
Journal: Applied Economics
Pages: 1535-1549
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600616
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600616
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1535-1549
Template-Type: ReDIF-Article 1.0
Author-Name: Shuching Chou
Author-X-Name-First: Shuching
Author-X-Name-Last: Chou
Author-Name: Fengyi Lin
Author-X-Name-First: Fengyi
Author-X-Name-Last: Lin
Title: Bank's risk-taking and ownership structure - evidence for economics in transition stage
Abstract:
Conventional studies assume that inside management plays a major role in
corporate governance and argue that foreign institutional investors may
lack incentives to monitor invested firms due to their short-term profit
orientation. By utilizing 650 observations of Taiwan banks, this study
examines the effects of specific types of ownership on the risk-taking
behaviours of banks under differential ownership structures. In light of
the increasing foreign institution ownership during privatization, this
article further constructs relative governance strength variables to
observe how inside management and foreign institutions interact to affect
these banks' risk-taking. The results show that banks with higher inside
management ownership and higher government ownership have higher overdue
loan and lower capital adequacy ratios. Banks with higher foreign
institution ownership and stronger relative governance strength are
associated with lower overdue loans and higher regulatory capital. In
general, the results are consistent regardless of the choice of ownership
structure or relative governance strength of foreign institutions as
independent variable. These findings contribute to add evidence for
risk-taking behaviour manifested by banks in the emerging market, where
feasible monitoring mechanisms still need to be explored.
Journal: Applied Economics
Pages: 1551-1564
Issue: 12
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903018791
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903018791
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Handle: RePEc:taf:applec:v:43:y:2011:i:12:p:1551-1564
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of trade: introduction and overview
Abstract:
We provide an introduction and overview to the eleven applied economics
studies making up this special themed issue on The applied economics of
trade. The studies cover a wide range of topics, and employ a variety of
applied techniques across a range of countries.
Journal: Applied Economics
Pages: 1565-1566
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2011.587304
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2011.587304
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1565-1566
Template-Type: ReDIF-Article 1.0
Author-Name: Cristian Boboilă
Author-X-Name-First: Cristian
Author-X-Name-Last: Boboilă
Author-Name: Cristea Boboilă
Author-X-Name-First: Cristea
Author-X-Name-Last: Boboilă
Title: Functions that model foreign trade during the East-European transition from communism to capitalism
Abstract:
Analytical methods generally use a wide range of statistical mathematical
functions, such as the linear function, the hyperbolic function, the
higher-order parabolic function and the exponential function to better
approximate economic trends. The testing of a wide range of functions is
mandatory, in order to choose the ones that offer the possibility of
predicting trends more accurately. In the current report, we introduce
several functions and compare them on datasets concerning foreign trade of
Romania over the 1996 to 2000 period. We conclude that some of the
complexities of transitioning from a communist to a capitalist economy, as
reflected in the foreign trade, are best captured by complex and logistic
functions defined below. Furthermore, we describe a seasonal variation in
the volume of trade, which may be characteristic for all transition
economies in East-European countries.
Journal: Applied Economics
Pages: 1567-1577
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802584901
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802584901
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1567-1577
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Scott Hegerty
Author-X-Name-First: Scott
Author-X-Name-Last: Hegerty
Title: The J-curve and NAFTA: evidence from commodity trade between the US and Mexico
Abstract:
The North American Free Trade Agreement (NAFTA) was predicted to have a
substantial impact on the US-Mexico trade, especially on specific
importing and exporting industries. In this article, we use annual
industry-level export and import data from 1962 to 2004 to discern both
the short- and long-run effects of real exchange-rate depreciation on the
Mexico-US trade balance, as well as the effects of NAFTA on this trade. We
find that peso depreciation has a positive long-run effect on 24 of 102
Mexican industries and a negative short-run effect on 19 of 102
industries. Only a small fraction (7 of 102 industries) show any support
for the J-curve hypothesis. NAFTA has had a significant effect on a
significant number of the industries, however.
Journal: Applied Economics
Pages: 1579-1593
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802360328
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360328
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1579-1593
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Bennett
Author-X-Name-First: Robert
Author-X-Name-Last: Bennett
Author-Name: Paul Robson
Author-X-Name-First: Paul
Author-X-Name-Last: Robson
Title: Exploring the use of trade and professional association services
Abstract:
This article examines how the services offered by sector business
associations are used and the impact that they offer. A large-scale survey
of small- and medium-sized businesses is used to infer how association
services operate. An important focus is to determine the level at which
the fixed costs of association services are covered: this defines a
minimum-size level for associations. This is found to be between one-half
and one member of staff per thousand businesses in that sector. This is a
fairly low barrier to market entry by an association, which helps to
explain the fragmentation of associations. This is further indicated by
the existence of declining internal economics of scale and scope for
larger association sizes. This suggests that efforts to stimulate
association merger and co-operation will continue to meet with limited
success.
Journal: Applied Economics
Pages: 1595-1605
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802599990
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599990
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1595-1605
Template-Type: ReDIF-Article 1.0
Author-Name: David Karemera
Author-X-Name-First: David
Author-X-Name-Last: Karemera
Author-Name: Shunsuke Managi
Author-X-Name-First: Shunsuke
Author-X-Name-Last: Managi
Author-Name: Lucy Reuben
Author-X-Name-First: Lucy
Author-X-Name-Last: Reuben
Author-Name: Ora Spann
Author-X-Name-First: Ora
Author-X-Name-Last: Spann
Title: The impacts of exchange rate volatility on vegetable trade flows
Abstract:
Trade flows of commodities are generally affected by the principles of
comparative advantage in a free trade. However, trade flows might be
enhanced or distorted not only by various government interventions, but
also by exchange rate fluctuations among others. This study applies a
commodity-specific gravity model to selected vegetable trade flows among
Organization for Economic Co-operation and Development (OECD) countries to
determine the effects of exchange rate uncertainty on the trade flows.
Using the data from 1996 to 2002, the results show that, while the
exchange rate uncertainty significantly reduces trade in the majority of
commodity flows, there is evidence that both short- and long-term
volatility have positive effect on trade flows of specific commodities.
This study also tests the regional preferential trade agreements such as
the North American Free Trade Agreement (NAFTA), the Asia-Pacific Economic
Cooperation (APEC) and the EU, and their different effects on commodities.
Journal: Applied Economics
Pages: 1607-1616
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600137
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600137
File-Format: text/html
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1607-1616
Template-Type: ReDIF-Article 1.0
Author-Name: Debasri Mukherjee
Author-X-Name-First: Debasri
Author-X-Name-Last: Mukherjee
Author-Name: Susan Pozo
Author-X-Name-First: Susan
Author-X-Name-Last: Pozo
Title: Exchange-rate volatility and trade: a semiparametric approach
Abstract:
We use a gravity model to analyse the impact of exchange-rate volatility
on the volume of bilateral international trade. Semiparametric regression
methods are applied to the pooled data for over 200 countries. Our results
indicate that volatility affects trade negatively although at very high
level of volatility the effect diminishes and eventually becomes
statistically indistinguishable from zero. Countries apparently find
avenues to mitigate the detrimental impact of exchange rate uncertainty
when volatility attains very high levels. These results help reconcile the
contradictory findings often found in the literature on the impact of
exchange-rate uncertainty on trade volume.
Journal: Applied Economics
Pages: 1617-1627
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600327
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600327
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1617-1627
Template-Type: ReDIF-Article 1.0
Author-Name: Francis Kumah
Author-X-Name-First: Francis
Author-X-Name-Last: Kumah
Title: Real exchange rate assessment in the GCC countries — a trade elasticities approach
Abstract:
This article adopts new panel econometric methods to assess real exchange
rate alignment with economic fundamentals in the countries of the Gulf
Cooperation Council (GCC), using a theoretical approach popularized by
Paul Krugman in the late 1980s. Results from panel econometric
applications of the Krugman model yield low levels of real exchange rate
undervaluation in the GCC countries, although indicating persistence of
undervaluation - albeit statistically low - into the medium term. They
also show that the recent real exchange rate undervaluation could be
characterized as due to 'short-run frictions and adjustment costs'
associated with continued depreciation of the US dollar to which GCC
countries' currencies are pegged. Further, failure to find supporting
evidence for the Marshall-Lerner condition underscores the propriety of
using fiscal policy rather than exchange rate policy to address recent
inflationary pressures and help resolve lingering global financial
imbalances.
Journal: Applied Economics
Pages: 1629-1646
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600640
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600640
File-Format: text/html
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1629-1646
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Deloof
Author-X-Name-First: Marc
Author-X-Name-Last: Deloof
Author-Name: Wouter Van Overfelt
Author-X-Name-First: Wouter
Author-X-Name-Last: Van Overfelt
Title: Trade credit and bank relationships: evidence from pre-World War I Belgium
Abstract:
We investigate the determinants of trade credit granted by suppliers in a
historical environment which was characterized by high-information
asymmetries and strong banks, focusing on the role of bank-firm
relationships. Our results, which are based on a unique sample of 535
firm-year observations for 125 listed Belgian firms in four dominant
industries in the period 1905 to 1909, are generally consistent with the
financing role of trade credit. They suggest that trade credit was a tool
for channelling funds from firms with close bank ties to other firms,
which is consistent with findings for contemporary developing countries.
Journal: Applied Economics
Pages: 1647-1655
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903166269
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166269
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1647-1655
Template-Type: ReDIF-Article 1.0
Author-Name: John Francis
Author-X-Name-First: John
Author-X-Name-Last: Francis
Author-Name: Yuqing Zheng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Zheng
Title: Trade liberalization, unemployment and adjustment: evidence from NAFTA using state level data
Abstract:
This article specifies a supply and demand model of the labour market to
examine the effects of North American Free Trade Agreement (NAFTA) on the
US labour market. Regression results suggest that NAFTA decreased yearly
unemployment growth by 4.4%. Equivalently, NAFTA brought a structural
break to the US state level unemployment. The second finding is that the
labour market began feeling the impact of NAFTA immediately after its
implementation and the labour market has continued to feel its effects
probably through 2001.
Journal: Applied Economics
Pages: 1657-1671
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903194212
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194212
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1657-1671
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Chalkley
Author-X-Name-First: Martin
Author-X-Name-Last: Chalkley
Author-Name: Geoff Stewart
Author-X-Name-First: Geoff
Author-X-Name-Last: Stewart
Title: International trade and the incentive for merger
Abstract:
This article examines the profitability of horizontal merger in an open
economy with Cournot competition. We find that duopoly is a necessary, but
not sufficient, condition for domestic merger to be profitable. A
cross-border merger, however, can be profitable from any market structure.
Journal: Applied Economics
Pages: 1673-1677
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903527171
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903527171
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1673-1677
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Bilson Darku
Author-X-Name-First: Alexander Bilson
Author-X-Name-Last: Darku
Title: The impact of trade liberalization and the fiscal equalization transfer policy on provincial income disparities in Canada: an application of GMM estimation
Abstract:
This article uses the Solow growth model and the panel data method to
examine the effect of trade liberalization and the federal equalization
transfers on income convergence among Canadian provinces between 1981 and
2006. Estimation problems of weak instruments and endogenous regressors
are addressed by the use of a system Generalized Method of Moment (GMM)
estimator. The results from the empirical analysis indicate that the
current rate of convergence of Personal Income (PI) in Canada is 4.41% per
year. This rate is considerably higher than the range of 1.80 and 2.41%
per year that previous studies using least-square estimators have
reported. The findings from the policy analysis show that the launching
and expansion of the North America regional integration have
de-accelerated the convergence speed for Canadian provinces by 3.99 and
3.15% per year, respectively. However, consistent with the results from
previous studies, the fiscal transfers, which are part of the federal
equalization programme, have accelerated the convergence speed for
Canadian provinces.
Journal: Applied Economics
Pages: 1679-1689
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491465
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491465
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1679-1689
Template-Type: ReDIF-Article 1.0
Author-Name: Gianluca Cafiso
Author-X-Name-First: Gianluca
Author-X-Name-Last: Cafiso
Title: Rose effect versus border effect: the Euro's impact on trade
Abstract:
The purpose of this article is to test the common finding of a positive
'Rose Effect' (RE) in the case of the Euro through a comparison with an
indicator of integration among the Euro Zone (EZ) countries: the 'Border
Effect' (BE). This study of the Euro's impact using both the RE and the BE
is a novelty in the literature. Our findings cast doubts about the
supposed trade-costs reduction caused by the Euro, reduction which is the
main explanation of the positive RE estimated in several works. Both
indicators are estimated by means of a gravity model for bilateral trade
flows using a panel of manufacture exports and production figures.
Journal: Applied Economics
Pages: 1691-1702
Issue: 13
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724437
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724437
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Handle: RePEc:taf:applec:v:43:y:2011:i:13:p:1691-1702
Template-Type: ReDIF-Article 1.0
Author-Name: David Bessler
Author-X-Name-First: David
Author-X-Name-Last: Bessler
Author-Name: James Kolari
Author-X-Name-First: James
Author-X-Name-Last: Kolari
Author-Name: Thein Maung
Author-X-Name-First: Thein
Author-X-Name-Last: Maung
Title: Dynamic linkages among equity markets: local versus basket currencies
Abstract:
This article compares the stability of interrelationships among nine
national equity markets by employing basket currencies versus individual
base currencies to measure rates of return. We show that the average
correlations of equity indexes based on basket currencies are much lower
than the average correlations of equity indexes based on individual home
base currencies. Additionally, empirical directed graph results from using
basket currencies are more consistent with each other than the results
from using different individual currencies. We conclude that basket
currencies provide more robust results for studying equity market
comovements than individual currencies. By implication, studies on equity
market interrelationships, including studies on potential financial
contagion between equity markets, should use basket currencies to avoid
currency dependent results.
Journal: Applied Economics
Pages: 1703-1719
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802631843
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802631843
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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1703-1719
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Title: Model selection for forecast combination
Abstract:
In this article it is advocated to select a model only if it
significantly contributes to the accuracy of a combined forecast. Using
hold-out-data forecasts of individual models and of the combined forecast,
a useful test for equal forecast accuracy can be designed. An illustration
for real-time forecasts for Gross Domestic Profit (GDP) in the Netherlands
shows its ease of use.
Journal: Applied Economics
Pages: 1721-1727
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902762753
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902762753
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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1721-1727
Template-Type: ReDIF-Article 1.0
Author-Name: Keith Coble
Author-X-Name-First: Keith
Author-X-Name-Last: Coble
Author-Name: Zhijun Yang
Author-X-Name-First: Zhijun
Author-X-Name-Last: Yang
Author-Name: M. Darren Hudson
Author-X-Name-First: M. Darren
Author-X-Name-Last: Hudson
Title: Using experimental economics to evaluate alternative subjective elicitation procedures
Abstract:
Managing uncertainty is an unavoidable challenge in a variety of decision
contexts. If empirical data are available, statistics can be used to
assist decision-making. If objective data are absent, experts are commonly
used as a source of subjective probability estimates about the variable of
interest. In our controlled economic experiment, a web-based software was
developed and incentive-compatible rewards were applied to participants in
order to induce rational decision-making. Participants assessed data drawn
from known distributions and then responded to a subjective probability
elicitation. The empirical results provide experimentally based guidance
on elicitation and aggregation techniques that yield the most accurate
subjective estimates of unknown probabilities. The results can be applied
to a wide array of decision-making processes involving subjective
probability analysis.
Journal: Applied Economics
Pages: 1729-1736
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600632
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600632
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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1729-1736
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Beck
Author-X-Name-First: Jonathan
Author-X-Name-Last: Beck
Author-Name: Michal Grajek
Author-X-Name-First: Michal
Author-X-Name-Last: Grajek
Author-Name: Christian Wey
Author-X-Name-First: Christian
Author-X-Name-Last: Wey
Title: Estimating level effects in diffusion of a new technology: barcode scanning at the checkout counter
Abstract:
Cross-country or cross-industry studies of technology diffusion typically
estimate how independent factors affect diffusion speed or timing, often
based on a two-stage approach. In many applications, however, countries
(industries) differ most in the saturation level of diffusion. In a
single-stage econometric approach to a standard diffusion model, we
therefore estimate how the saturation level covaries with independent
factors. In our application to diffusion of an important retail
information technology, we focus on the competitive effect of hypermarkets
(superstores). We also find standard scale, income and labour substitution
effects.
Journal: Applied Economics
Pages: 1737-1748
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600624
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600624
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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1737-1748
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Niaz Asadullah
Author-X-Name-First: Mohammad Niaz
Author-X-Name-Last: Asadullah
Title: Intra- and inter-household externalities in children's schooling: evidence from rural residential neighbourhoods in Bangladesh
Abstract:
This article tests for neighbourhood effects on children's schooling,
using unique data on rural residential neighbourhoods from Bangladesh. We
find that school completion of children is positively and significantly
affected by the mean grade completion of other children in the
neighbourhood. We then present three pieces of evidence that suggest that
the social effect offers a valid explanation. Firstly, the evidence we
find of inter-household externalities is not driven out by control for a
host of neighbourood and household attributes. Secondly, the result
remains robust to neighbourhood composition effects: it is unchanged as we
purge our main sample of the households within the neighbourhood that are
potentially linked in terms of their recent history of partition. Thirdly,
a similar peer effect is found for adults who completed schooling before
the introduction of existing educational reforms in rural areas suggesting
that the observed effect of growing up in educated neighbourhood does not
merely capture the influence of common exposure to various government
educational interventions. As a by-product, the article also provides
evidence of intra-household externality in children's schooling, net of
neighbourood externalities. We conclude by discussing the implication of
these findings for education policy design.
Journal: Applied Economics
Pages: 1749-1767
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600590
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600590
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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1749-1767
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Falbo
Author-X-Name-First: Paolo
Author-X-Name-Last: Falbo
Author-Name: Cristian Pelizzari
Author-X-Name-First: Cristian
Author-X-Name-Last: Pelizzari
Title: Stable classes of technical trading rules
Abstract:
Technical analysis includes a huge variety of trading rules. This fact
has always been a serious hindrance to the large number of market
efficiency studies implemented either to demonstrate the profitability of
market-beating systems or to deny their operational feasibility. For
evident reasons it is practically impossible and theoretically weak to
systematically analyse the entire body of all trading rules. We therefore
propose a novel method to form natural classes of trading rules which are
found to be robust to changing market scenarios. In particular, groups are
formed adopting a similarity measure based on the investing signals of the
trading rules. Our clustering methodology adopts a Markov chain
bootstrapping technique to generate differentiated scenarios preserving
volume and price joint distributional features. An application is
developed on a sample of 674 trading rules. Results show that six groups
(here identified as trading styles) are sufficient to explain the large
portion of the investing signals variance. We also suggest applications of
our results to fund performance measurement and the analysis of financial
markets.
Journal: Applied Economics
Pages: 1769-1785
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/09603100802676239
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100802676239
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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1769-1785
Template-Type: ReDIF-Article 1.0
Author-Name: J. W. Fedderke
Author-X-Name-First: J. W.
Author-X-Name-Last: Fedderke
Author-Name: B. G. Teubes
Author-X-Name-First: B. G.
Author-X-Name-Last: Teubes
Title: Fiscal incentives for research and development
Abstract:
It is often argued that since the social return to R&D exceeds the
private return, the government should provide incentives for R&D
expenditure. This article considers the issue of the impact of such
incentives on the fiscal position of the government, using a simple
comparative static model. In particular, it is argued that it is possible
that the social return from R&D might be sufficient to allow R&D
incentives to more than pay for themselves. On the basis of the
international evidence, the model is calibrated to examine what values of
the key parameters are required in order for this conclusion to hold.
Journal: Applied Economics
Pages: 1787-1800
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802631827
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802631827
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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1787-1800
Template-Type: ReDIF-Article 1.0
Author-Name: Gulcay Tuna
Author-X-Name-First: Gulcay
Author-X-Name-Last: Tuna
Title: The effectiveness of Central Bank intervention: evidence from Turkey
Abstract:
This article investigates the effectiveness of Central Bank intervention
on the conditional variance and the mean of the exchange rate returns in
Turkey during the float period. The daily exchange rates are studied
within an Exponential General Autoregressive Conditional Heteroskedastic
(EGARCH) framework. Little evidence is found for the effectiveness of
intervention operations. Empirical results suggest that foreign exchange
(FX) selling auctions increase exchange rate volatility. However, a
reverse causality relationship detected between one-day past sales of FX
auctions and exchange rate returns which is supportive of
leaning-against-the-wind behaviour of the Central Bank contradicts its
announcements. Also the Central Bank of Turkey (CBT) tends to intervene
through FX selling auctions when one-day past volatility is higher.
Journal: Applied Economics
Pages: 1801-1815
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802676228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802676228
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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1801-1815
Template-Type: ReDIF-Article 1.0
Author-Name: Alaa El-Shazly
Author-X-Name-First: Alaa
Author-X-Name-Last: El-Shazly
Title: Designing an early warning system for currency crises: an empirical treatment
Abstract:
This article investigates the predictive power of qualitative response
models that can serve as the basis for an early warning system for
currency crises. It employs a signals framework that monitors the
behaviour of key economic variables and issues a warning when their values
exceed certain critical levels. The analysis is carried out for a
parsimonious specification with high-frequency data. Taking Egypt as a
case study, it is shown that this class of probability models captures to
a good extent the turbulence in the foreign exchange market and the onset
of crises.
Journal: Applied Economics
Pages: 1817-1828
Issue: 14
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600657
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600657
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Template-Type: ReDIF-Article 1.0
Author-Name: Yamin Ahmad
Author-X-Name-First: Yamin
Author-X-Name-Last: Ahmad
Author-Name: Stuart Glosser
Author-X-Name-First: Stuart
Author-X-Name-Last: Glosser
Title: Searching for nonlinearities in real exchange rates
Abstract:
A recent innovation in modelling exchange rates has been the use of
nonlinear techniques such as threshold autoregressive models and its
smooth transition variants. This article investigates the Smooth
Transition Autoregressive (STAR) modelling strategy in an application to
real exchange rates. The key findings are as follows. First, using the
methodology advocated by Terasvirta (1994), we find evidence of nonlinear
dynamics for several of the spot dollar real exchange rates using monthly
data on five of the G7 countries. However, once estimated, we find that
the STAR specification is appropriate for only one of the three exchange
rate series indicated to be an Exponential Smooth Transition
Autoregressive (ESTAR) process. Moreover, using simulations, we show that
the underlying methodology used to detect nonlinearities in the data
exhibit substantial size biases, which we attribute to influential
observations. We find, upon investigating alternative nonlinear
specifications, that the open-loop Threshold Autoregressive (TAR) process
is a more appropriate specification than the ESTAR process for the
dollar-sterling and dollar-lira real exchange rates.
Journal: Applied Economics
Pages: 1829-1845
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902817797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902817797
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1829-1845
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Matsumura
Author-X-Name-First: Marco
Author-X-Name-Last: Matsumura
Author-Name: Ajax Moreira
Author-X-Name-First: Ajax
Author-X-Name-Last: Moreira
Title: Assessing macro influence on Brazilian yield curve with affine models
Abstract:
Using affine term structure models with latent and observable factors, we
study the interaction between macro variables and the Brazilian yield
curve contained in a daily dataset. Two versions of the model are tested,
one in continuous time and estimated using maximum likelihood with
Chen-Scott inversion (1993), and the other in discrete time and estimated
using Monte Carlo-Markov Chain (MCMC) with Kalman filter. The effect of
the inclusion of macro factors and changes of specification on the
goodness-of-fit and dynamics are analysed. We conclude that the
interaction between the macro variables and the yield curve is an
important element for understanding the dynamics. Also, the choice of
specification alters the response of the identified shocks.
Journal: Applied Economics
Pages: 1847-1863
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902762746
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902762746
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1847-1863
Template-Type: ReDIF-Article 1.0
Author-Name: Masashi Hasegawa
Author-X-Name-First: Masashi
Author-X-Name-Last: Hasegawa
Author-Name: Yuichi Fukuta
Author-X-Name-First: Yuichi
Author-X-Name-Last: Fukuta
Title: An empirical analysis of information in the yield spread on future recessions in Japan
Abstract:
This article examines whether the yield spread contains information on
the likelihood of future economic recessions using a probit model by
taking the stability of the relationship between the yield spread and
future recessions into account. We also compare the accuracy of
information in the yield spread with stock returns and money supply. We
find the following results in this article. First, a structural change in
the relationship between the yield spread and future recessions occur at
the end of 1996. Second, whereas the Japanese yield spread contains more
precise information on future recessions than stock returns and nominal
money supply before the structural break, we cannot predict future
recessions using the yield spread after the break. Third, the money supply
does not forecast future recessions for the entire sample period.
Journal: Applied Economics
Pages: 1865-1881
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902780136
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902780136
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1865-1881
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Kargbo
Author-X-Name-First: Joseph
Author-X-Name-Last: Kargbo
Title: Capital flows, real exchange rate misalignment and PPP tests in emerging market countries
Abstract:
The economic performance of emerging markets has significant impacts on
economic growth and volatility of macroeconomic indicators in various
countries. Emerging markets accounted for 20-43% of global exports during
the period 1970-2005, and held 70% of global foreign reserves in recent
years. More than 50% of the exports from the Euro area, Japan and the
United States go to emerging markets and other developing countries. The
globalization of capital flows is facilitated by technological innovations
and excellent information networks, coupled with sharp increases in
savings that are directed into financial instruments across borders. The
use of Purchasing Power Parity (PPP) as a benchmark in exchange rate
policy reforms assumes the existence of a stable relationship between the
exchange rate and the ratio of price levels in two countries. This article
investigates whether or not long-run PPP holds in emerging markets.
Johansen's cointegration technique is used with annual data in analysing
the relationship between exchange rates and the CPI during the period
1951-2005. We found overwhelming support for long-run PPP in emerging
markets, thus, PPP is a reliable guide for exchange rate determination and
exchange rate policy reforms in these countries.
Journal: Applied Economics
Pages: 1883-1897
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902762761
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902762761
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1883-1897
Template-Type: ReDIF-Article 1.0
Author-Name: Derek Bond
Author-X-Name-First: Derek
Author-X-Name-Last: Bond
Author-Name: Michael Harrison
Author-X-Name-First: Michael
Author-X-Name-Last: Harrison
Author-Name: Edward O'Brien
Author-X-Name-First: Edward
Author-X-Name-Last: O'Brien
Title: Nonlinearity and structural breaks in Irish PPP relationships: an application of random field regression
Abstract:
Using nominal and real exchange rates for Ireland relative to Germany and
the UK from 1975 to 2003, this article explores likely sources of
nonlinearity in Purchasing Power Parity (PPP) relationships and
difficulties in employing an I(1)/I(0) econometric framework. Tests for
fractional integration and nonlinearity, including random field
regression-based procedures, are applied. Results reveal shortcomings in
the standard cointegration and smooth transition autoregression approaches
to modelling, and point to multiple structural changes models. Such a
model for the case of Ireland and Germany suggests that PPP holds not only
in the long-run but also in the medium to short term.
Journal: Applied Economics
Pages: 1899-1911
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902780144
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902780144
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1899-1911
Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Carlsen
Author-X-Name-First: Fredrik
Author-X-Name-Last: Carlsen
Author-Name: Jostein Grytten
Author-X-Name-First: Jostein
Author-X-Name-Last: Grytten
Author-Name: Irene Skau
Author-X-Name-First: Irene
Author-X-Name-Last: Skau
Title: Physician response to fee changes: using inheritance as a quasi-natural experiment
Abstract:
We used data on inheritance received by Norwegian primary care physicians
and their spouses to study how wealth affects the amount of medical
treatment provided by fee-for-service physicians. The effect of wealth on
the number of consultations, and the amount of treatment provided during
consultations, was small. Our results suggest that the income effect of
fee changes on service provision of fee-for-service physicians is
moderate, implying that fee regulation is an effective means of
controlling spending on primary care physician services.
Journal: Applied Economics
Pages: 1913-1922
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902837092
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902837092
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1913-1922
Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Feng Lee
Author-X-Name-First: Cheng-Feng
Author-X-Name-Last: Lee
Author-Name: Ching-Chuan Tsong
Author-X-Name-First: Ching-Chuan
Author-X-Name-Last: Tsong
Title: Covariate selection for testing purchasing power parity
Abstract:
This article employs Hansen's (1995) Covariate Augmented Dickey-Fuller
(CADF) test to reexamine the issue of Purchasing Power Parity (PPP) using
post-Bretton Woods exchange rate data for 20 industrialized countries.
Instead of just using a single covariate as in the literature, we
implement the test by using Bai and Ng's (2002) method to choose suitable
stationary covariates. Our empirical results show that the real exchange
rates generally display long-run mean reversion and support PPP, as
contrasted with those obtained in Amara and Papell (2006) that less
rejections of unit root hypothesis are made with the same test. The panel
unit root test suggested by Chang (2004) is also performed to justify our
results.
Journal: Applied Economics
Pages: 1923-1933
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902837100
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902837100
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1923-1933
Template-Type: ReDIF-Article 1.0
Author-Name: Yen-Hsien Lee
Author-X-Name-First: Yen-Hsien
Author-X-Name-Last: Lee
Author-Name: Chien-Liang Chiu
Author-X-Name-First: Chien-Liang
Author-X-Name-Last: Chiu
Title: Arbitrage behaviour in the exchange rates of Taiwan and Japan: applying the smooth transition vector error correction model with GJR-GARCH and spillover volatility
Abstract:
This study utilizes a Smooth Transition Vector Error Correction Model
(STVECM) with Glosten-Jagannathan-Runkle-Generalized Autoregressive
Conditional Heteroscedasticity (GJR-GARCH) and spillover volatility to
investigate the changes in short-run return dynamics when a deviation from
the comovement equilibrium between the prices of New Taiwan Dollar (NTD)
and Japan Yen (JPY) exists. Empirical results demonstrated that both
exchange rates have a nonlinear relationship with the comovement
equilibrium, which was captured by the Logistic Smooth Transition Vector
Error Correction Model with GJR-GARCH and Spillover Volatility
(LSTVECM-GJR-GARCH-SV). Both exchange rates will quickly reverse to
equilibrium when there are large deviations between the two exchange
rates, implying that information traders obtain profit in two markets, and
then both exchange rates continue to deviate from equilibrium when small
deviations exist from comovement, owing to noise trader to expand
mispricing. Moreover, small and large deviations may have obvious
differences and adjustment speeds when reverting to equilibrium for large
negative and large positive deviations. Thus, this study applied
LSTVECM-GJR-GARCH-SV to elucidate arbitrage behaviour.
Journal: Applied Economics
Pages: 1935-1943
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902902235
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902902235
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1935-1943
Template-Type: ReDIF-Article 1.0
Author-Name: William Cheung
Author-X-Name-First: William
Author-X-Name-Last: Cheung
Author-Name: Keith Lam
Author-X-Name-First: Keith
Author-X-Name-Last: Lam
Author-Name: HangFai Yeung
Author-X-Name-First: HangFai
Author-X-Name-Last: Yeung
Title: Intertemporal profitability and the stability of technical analysis: evidences from the Hong Kong stock exchange
Abstract:
This study investigates the impact of market integration on the
profitability of two simple and popular technical trading rules, the
Simple Moving Average (SMA) and the Trading Range Break (TRB) in Hong
Kong. Using data from 1972 to 2006, we find that the SMA (1, 50)
consistently outperforms the market before the integration of stock
exchanges in 1986. Under the (1, 50) rule, a variable length moving
average performs better than the fixed length moving average rule by 2.5
to 5% (annual) before transaction costs because it includes the
information of the first 9 days into investors' decision. The results are
robust to the out of sample tests for the validity of the profitability of
the trading rules. The returns of the trading range break rules are
insignificant over the 35-year span. Our results support the conjecture
that stock market integration may lead to better information efficiency.
The findings of significant pre-1986 profits and insignificant post-1986
profits, contradict previous findings that returns are predictable in Hong
Kong, suggesting that the Hong Kong stock market may be weak-form
efficient after 1986. Overall, our results suggest that technical analysis
matters for asset pricing.
Journal: Applied Economics
Pages: 1945-1963
Issue: 15
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902817805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902817805
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Handle: RePEc:taf:applec:v:43:y:2011:i:15:p:1945-1963
Template-Type: ReDIF-Article 1.0
Author-Name: Heng Chen
Author-X-Name-First: Heng
Author-X-Name-Last: Chen
Author-Name: Dietrich Fausten
Author-X-Name-First: Dietrich
Author-X-Name-Last: Fausten
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Title: Evolution of the Trans-Atlantic exchange rate before and after the birth of the Euro and policy implications
Abstract:
The establishment of the Euro could present a challenge to the hegemony
of the US Dollar as the predominant international currency. The fact that
the unipolar US Dollar dominated international monetary system can be
unstable in the presence of large shocks presents an opportunity for the
Euro to promote systemic stability. The present study pursues this
conjecture by exploring with cointegration and Error Correction Method
techniques, the interdependence between the dynamics of the Dollar/Euro
exchange rate and economic fundamentals in the context of a monetary
exchange rate model. Our results suggest that both short-run (price
stickiness) and long-run (secular growth) fundamentals affect the exchange
rate path. These findings support a relatively broad-based policy approach
to promote the collective economic interest of the EU-zone. To the extent
that such policies succeed in strengthening and stabilizing the Euro-zone
economy, they are likely to buttress and possibly accelerate the
internationalization of the Euro.
Journal: Applied Economics
Pages: 1965-1977
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902845509
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902845509
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:1965-1977
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Zubaidi Baharumshah
Author-X-Name-First: Ahmad Zubaidi
Author-X-Name-Last: Baharumshah
Author-Name: Chan Tze Haw
Author-X-Name-First: Chan Tze
Author-X-Name-Last: Haw
Author-Name: A.Mansur M. Masih
Author-X-Name-First: A.Mansur M.
Author-X-Name-Last: Masih
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: Financial integration of East Asian economies: evidence from real interest parity
Abstract:
In this article, we investigate the financial linkages between the East
Asian economies with Japan and the United States. We test for long-run
Real Interest-rate Parity (RIP) using an array of panel-data techniques,
including recent techniques developed by Breuer et al. (2002) and
Carrion-i-Silvestre et al. (2005). This study offers two important
results: first, the failure to account for structural breaks in the
industrialized countries and Asian emerging economies is likely to provide
evidence of nonstationary series that are stationary. Second, we found
strong evidence that the parity condition holds in all the Asian
countries. The failure of earlier studies to confirm mean reversion of
Real Interest-rate Differential (RID) may reflect the choice of
estimation/testing procedure rather than any inherent deficiency in the
RIP.
Journal: Applied Economics
Pages: 1979-1990
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902902243
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902902243
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:1979-1990
Template-Type: ReDIF-Article 1.0
Author-Name: Garry MacDonald
Author-X-Name-First: Garry
Author-X-Name-Last: MacDonald
Author-Name: Andy Mullineux
Author-X-Name-First: Andy
Author-X-Name-Last: Mullineux
Author-Name: Rudra Sensarma
Author-X-Name-First: Rudra
Author-X-Name-Last: Sensarma
Title: Asymmetric effects of interest rate changes: the role of the consumption-wealth channel
Abstract:
This article examines the role of the consumption-wealth channel in
explaining asymmetric effects of monetary policy changes. Towards this
end, we draw upon available literature on the consumption function and
behavioural finance to construct a framework for asymmetric effects of
monetary policy caused by the impact of wealth changes on aggregate
consumption. We then employ data from the UK to examine the validity of
the proposed framework. In the context of a liberalized economy with easy
access to consumer credit, wealth reduction due to monetary tightening is
expected to have weaker impact on spending than increase in wealth. Our
results validate the above hypothesis.
Journal: Applied Economics
Pages: 1991-2001
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902950572
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902950572
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:1991-2001
Template-Type: ReDIF-Article 1.0
Author-Name: Mingshu Hua
Author-X-Name-First: Mingshu
Author-X-Name-Last: Hua
Author-Name: Chen-Yu Li
Author-X-Name-First: Chen-Yu
Author-X-Name-Last: Li
Title: The intraday bid-ask spread behaviour of the JPY/USD exchange rate in the EBS electronic brokerage system
Abstract:
Using a sophisticated tool of the Periodic-Generalized Autoregressive
Conditional Heteroscedastic (P-GARCH) model, this article investigates the
market institutional effects of the determining role of trading activities
and exchange rate volatility on the intraday behaviour of the 15-minute
JPY/USD exchange rate bid-ask spreads in the Electronic Broking Service
(EBS) of electronic brokerage market for the period from 1 January 2003 to
31 December 2005. We find that the exchange rate volatility both
significantly and positively affects the bid-ask spreads, while the number
of deals and quotation changes negatively affect the bid-ask spreads.
These results are similar to those of past studies. We also find that a
U-shaped pattern exists in the Tokyo trading hours and an inverted
U-shaped pattern in the London trading hours, in addition to a round clock
inverted U-shaped pattern of spread volatility. This inverted U-shaped
pattern may be caused by unexpected news arrivals. The spread behaviour of
the EBS global electronic broking market is not different from that of
other electronic interdealer quotation markets and electronic broking
markets.
Journal: Applied Economics
Pages: 2003-2013
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902967576
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902967576
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2003-2013
Template-Type: ReDIF-Article 1.0
Author-Name: Alice Ouyang
Author-X-Name-First: Alice
Author-X-Name-Last: Ouyang
Author-Name: Ramkishen Rajan
Author-X-Name-First: Ramkishen
Author-X-Name-Last: Rajan
Title: Reserve accumulation and monetary sterilization in Singapore and Taiwan
Abstract:
Asian economies have embraced the globalization of production, trade and
capital flows. One dimension of contemporary globalization has been the
heavy exchange rate management by, and rapid and massive stockpiling of,
foreign exchange reserves in Asia. This article undertakes an empirical
investigation to assess the extent of de facto sterilization and capital
mobility in Singapore and Taiwan using quarterly data between 1990 and
2008. Our empirical results suggest that, since, 2001 both Singapore and
Taiwan have a high degree of - but not perfect - de facto capital
mobility. To date, this high-effective capital mobility has not undermined
the ability of the central bank in either economies to sterilize their
respective foreign exchange intervention but may make the process
increasingly difficult over time.
Journal: Applied Economics
Pages: 2015-2031
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902984373
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902984373
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2015-2031
Template-Type: ReDIF-Article 1.0
Author-Name: Mariani Abdul-Majid
Author-X-Name-First: Mariani
Author-X-Name-Last: Abdul-Majid
Author-Name: David Saal
Author-X-Name-First: David
Author-X-Name-Last: Saal
Author-Name: Giuliana Battisti
Author-X-Name-First: Giuliana
Author-X-Name-Last: Battisti
Title: The impact of Islamic banking on the cost efficiency and productivity change of Malaysian commercial banks
Abstract:
This study employs Stochastic Frontier Analysis (SFA) to analyse
Malaysian commercial banks during 1996-2002, and particularly focuses on
determining the impact of Islamic banking on performance. We derive both
net and gross efficiency estimates, thereby demonstrating that differences
in operating characteristics explain much of the difference in costs
between Malaysian banks. We also decompose productivity change into
efficiency, technical, and scale change using a generalized Malmquist
productivity index. On average, Malaysian banks experience moderate scale
economies and annual productivity change of 2.68%, with the latter driven
primarily by Technical Change (TC), which has declined over time. Our
gross efficiency estimates suggest that Islamic banking is associated with
higher input requirements. However, our productivity estimates indicate
that full-fledged Islamic banks have overcome some of these cost
disadvantages with rapid TC, although this is not the case for
conventional banks operating Islamic windows. Merged banks are found to
have higher input usage and lower productivity change, suggesting that
bank mergers have not contributed positively to bank performance. Finally,
our results suggest that while the East Asian financial crisis had a
short-term cost-reducing effect in 1998, the crisis triggered a
long-lasting negative impact by increasing the volume of nonperforming
loans.
Journal: Applied Economics
Pages: 2033-2054
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902984381
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902984381
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2033-2054
Template-Type: ReDIF-Article 1.0
Author-Name: Jie Li
Author-X-Name-First: Jie
Author-X-Name-Last: Li
Author-Name: Alice Ouyang
Author-X-Name-First: Alice
Author-X-Name-Last: Ouyang
Title: Currency crises: can high reserves offset vulnerable fundamentals?
Abstract:
First generation crisis models suggest that the size of international
reserves affects only the timing of a crisis while second generation
models imply that higher reserves can reduce the probability of a crisis.
First in the literature, this article suggests the 'rolling probit model'
to successfully demonstrate that high reserves can be effective in
offsetting vulnerable fundamentals in a vulnerable zone. The more
vulnerable fundamentals in the vulnerable zone require higher levels of
international reserves to reduce the probability of a crisis. If the
fundamentals are sufficiently bad, the level of needed reserves may be
explosive, which makes a crisis unavoidable. Unlike the arbitrary
proposals of reserve adequacy measures in current literature, this article
also sheds light on such measures based on the relationship between
vulnerable fundamentals and high reserves.
Journal: Applied Economics
Pages: 2055-2069
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902984399
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902984399
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2055-2069
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Are shocks to tourism transitory at business cycle horizons?
Abstract:
The goal of this article is to propose a theoretical framework based on a
macro model that can be used to examine the relative importance of
permanent and transitory shocks in explaining variations in tourist
expenditure and Gross Domestic Product (GDP) at business cycle horizons.
We estimate the model for Australia. Our findings reveal a common-trend
and common-cycle relationship among tourist expenditure and GDP, and the
variance decomposition analysis of shocks reveals that at business cycle
horizons permanent shocks explain the bulk of the variations in output,
while transitory shocks explain the bulk of the variations in tourist
expenditure.
Journal: Applied Economics
Pages: 2071-2077
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903035951
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903035951
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2071-2077
Template-Type: ReDIF-Article 1.0
Author-Name: Myoung Shik Choi
Author-X-Name-First: Myoung Shik
Author-X-Name-Last: Choi
Title: Momentary exchange rate locked in a triangular mechanism of international currency
Abstract:
This study uses two-way quoted data on major and nonmajor currencies to
test the exchange rate dynamics. Particular attention is paid to the
arbitrage and the spread in triangular foreign exchange trades. There is
only one possible triangle when a bilateral exchange rate equals its
trilateral rate. Otherwise, any third currency would potentially create
arbitrage opportunities. Empirical testing evidence supports that small
but possibly exploitable profitable arbitrage has significantly occurred
over the very short haul of uncertainty and turbulence. In other words, we
are convinced that the bilateral exchange rate could be diverged from one
common currency side of the trilateral basket rates until markets function
efficiently. This helps in better explaining foreign exchange rate
movements. In addition, we find that the currency correlating decreases
slightly but the volatility increases over time, as we expected.
Journal: Applied Economics
Pages: 2079-2087
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903035969
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903035969
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2079-2087
Template-Type: ReDIF-Article 1.0
Author-Name: Javed Younas
Author-X-Name-First: Javed
Author-X-Name-Last: Younas
Author-Name: Debasish Chakraborty
Author-X-Name-First: Debasish
Author-X-Name-Last: Chakraborty
Title: Globalization and the Feldstein-Horioka puzzle
Abstract:
Capital account liberalization and the integration of world financial
markets should increase capital mobility across countries. This article
uses the Feldstein-Horioka savings-investment methodology to examine the
impact of economic globalization on the degree of capital mobility in 99
countries over the period 1970 to 2005. Our findings suggest that economic
openness and financial market integration have led to increased capital
mobility in developed as well as developing countries. However, their
effect appears to be larger for the latter. This also implies that
countries with more financial openness can run higher current account
deficits due to better access to external capital markets. Our results
also support the previous findings that foreign aid supplements domestic
savings for investment in developing countries.
Journal: Applied Economics
Pages: 2089-2096
Issue: 16
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903035985
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903035985
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Handle: RePEc:taf:applec:v:43:y:2011:i:16:p:2089-2096
Template-Type: ReDIF-Article 1.0
Author-Name: Bram van Dijk
Author-X-Name-First: Bram
Author-X-Name-Last: van Dijk
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Author-Name: Richard Paap
Author-X-Name-First: Richard
Author-X-Name-Last: Paap
Author-Name: Dick van Dijk
Author-X-Name-First: Dick
Author-X-Name-Last: van Dijk
Title: Modelling regional house prices
Abstract:
We develop a panel model for regional house prices, for which both the
cross-section and the time series dimension is large. The model allows for
stochastic trends, cointegration, cross-equation correlations and, most
importantly, latent-class clustering of regions. Class membership is fully
data-driven and based on the average growth rates of house prices, and the
relationship of house prices with economic growth. We apply the model to
quarterly data for the Netherlands. The results suggest that there is
convincing evidence for the existence of two distinct clusters of regions
with pronounced differences in house price dynamics.
Journal: Applied Economics
Pages: 2097-2110
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903085089
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903085089
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2097-2110
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Musolesi
Author-X-Name-First: Antonio
Author-X-Name-Last: Musolesi
Author-Name: Mario Nosvelli
Author-X-Name-First: Mario
Author-X-Name-Last: Nosvelli
Title: Long-run water demand estimation: habits, adjustment dynamics and structural breaks
Abstract:
This article examines a water demand equation for Milan for the second
half of the 20th century: 1950-2001. We focus mainly on the effects of
price and habits, but also account for other factors in the demand for
water such as climate, income and productive activity. Allowing for trend
break stationarity or nonlinear trend stationarity, we find evidence
against the unit root hypothesis for many time series. Based on this
result, standard cointegration analysis would not be appropriate;
therefore we adopt an alternative estimation and testing procedure. We
focus, in particular, on the so-called bounds testing approach, which can
be applied irrespective of the level of integration of the variables and
which can be a useful modelling strategy given that dynamics are important
when estimating a water demand equation. The main results are that
long-run price elasticity is higher than short-run elasticity, and that
consumption habits are relevant. We also find that both climate, sectoral
and technological modifications affect water consumption, while income is
not significant. Finally, the changes to pricing schemes in the mid-1970s
provoked reactions of different magnitudes among households and firms.
Journal: Applied Economics
Pages: 2111-2127
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903066642
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903066642
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2111-2127
Template-Type: ReDIF-Article 1.0
Author-Name: Roy Brouwer
Author-X-Name-First: Roy
Author-X-Name-Last: Brouwer
Title: A mixed approach to payment certainty calibration in discrete choice welfare estimation
Abstract:
This article provides further empirical evidence of payment uncertainty
in dichotomous choice (DC) Contingent Valuation (CV) and proposes an
alternative way of certainty calibration, moving away from conventional
recoding of uncertain responses. In an international CV application, the
main sources of payment uncertainty are identified related to imperfect
knowledge and information about the public good involved, future supply
levels, income constraints, price levels and the survey instrument.
Together these sources of uncertainty are responsible for a third of the
error variance in the estimated discrete choice model. Accounting for the
heterogeneity induced by payment uncertainty in the welfare estimation
procedure with the help of a mixed probit model yields a significantly
lower welfare measure albeit at the expense of estimation precision.
Journal: Applied Economics
Pages: 2129-2142
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903035977
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903035977
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2129-2142
Template-Type: ReDIF-Article 1.0
Author-Name: Rainer Frey
Author-X-Name-First: Rainer
Author-X-Name-Last: Frey
Author-Name: Katrin Hussinger
Author-X-Name-First: Katrin
Author-X-Name-Last: Hussinger
Title: European market integration through technology-driven M&As
Abstract:
Merger and Acquisitions (M&As) have been an important tool for
reorganizing the European market since the establishment of European
Economic and Monetary Union. This article suggests that European
integration helped and encouraged European firms to source technology
across national borders in Europe, establishing European innovative firms.
The figures confirm that, once barriers impeding the free movement of
capital, goods and labour had fallen, European firms used M&As intensively
to enter foreign European markets. Enhancing technology competencies is
found to be one of the main motives for cross-border acquisitions in the
1990s but is not a factor in domestic acquisitions over the same period.
Journal: Applied Economics
Pages: 2143-2153
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903153796
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153796
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2143-2153
Template-Type: ReDIF-Article 1.0
Author-Name: Lukasz Grzybowski
Author-X-Name-First: Lukasz
Author-X-Name-Last: Grzybowski
Title: Screening competition in mobile telephony†
Abstract:
This article presents a simple method for screening competition in
differentiated products oligopoly with a small number of competitors. In
many situations, estimation of price elasticities of demand may be
impossible due to difficulties in defining demand or missing data on
sales. However, even without information on price elasticities, in certain
situations it is possible to test for the static noncooperative
Nash-Bertrand equilibrium, which in the case of rejection, may be
important screening information for antitrust authorities. The static
noncooperative Nash-Bertrand equilibrium may be rejected when demand is
linear and in the estimation of best-response functions, the coefficients
on the competitors' prices are statistically greater than 0.5. The
application of this method is illustrated by the example of German mobile
telephony using monthly data between January 1998 and December 2002.
According to the estimation results, the observed prices in the segment of
low-users cannot be the outcome of a static noncooperative Nash-Bertrand
equilibrium.
Journal: Applied Economics
Pages: 2155-2163
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903153788
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153788
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2155-2163
Template-Type: ReDIF-Article 1.0
Author-Name: A. Assaf
Author-X-Name-First: A.
Author-X-Name-Last: Assaf
Title: A fresh look at the productivity and efficiency changes of UK airlines
Abstract:
This article uses the bootstrapped Malmquist index methodology to measure
and test the extent of efficiency and productivity changes in the UK
airline sector. The aim of the bootstrap method is to overcome the
statistical limitations of the Data Envelopment Analysis (DEA) method,
generally used to measure the distance functions of the Malmquist index.
In applying the method we use input/output data on a sample of major UK
airlines for the period 2004-2007. Results showed that most airlines have
witnessed significant decrease in their productivity, efficiency, scale
and technology measures. Using a second stage Tobit regression, this
article attributed the sources of productivity and efficiency changes to
factors such as stage length, load factor and airline size. This article
also discussed the negative impacts of oil price using illustrations from
the UK and other international airlines.
Journal: Applied Economics
Pages: 2165-2175
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903085071
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903085071
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2165-2175
Template-Type: ReDIF-Article 1.0
Author-Name: Markus Leibrecht
Author-X-Name-First: Markus
Author-X-Name-Last: Leibrecht
Author-Name: Johann Scharler
Author-X-Name-First: Johann
Author-X-Name-Last: Scharler
Title: Borrowing constraints and international risk sharing: evidence from asymmetric error-correction
Abstract:
We analyse the adjustment process of consumption growth after
disequilibrating output shocks in a sample of Organization for Economic
Cooperation and Development (OECD) countries. In particular, we test the
hypothesis that consumption is smoothed to a lesser degree after negative
shocks, whereas the impact of a positive shock is delayed for a longer
period of time. Our analysis is based on an error-correction framework
that allows for asymmetric adjustment. We find that the mean adjustment
lag after a negative shock is significantly shorter than after a positive
shock, especially since the beginning of the 1980s. This result is
consistent with the interpretation that borrowing constraints limit the
degree to which the impact of negative shocks on consumption can be
smoothed.
Journal: Applied Economics
Pages: 2177-2184
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903103692
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903103692
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2177-2184
Template-Type: ReDIF-Article 1.0
Author-Name: Ujo Goto
Author-X-Name-First: Ujo
Author-X-Name-Last: Goto
Author-Name: Colin McKenzie
Author-X-Name-First: Colin
Author-X-Name-Last: McKenzie
Title: Deregulation and strategic complements: Japanese gasoline market
Abstract:
The purpose of this article is to provide an explanation for the success
of deregulation implemented in the Japanese oil industry by investigating
the economic norm in Japanese gasoline market, namely, how a firm expects
its rivals to react when the firm changes its output decisions. Using the
conjectural opponent's reaction, this article investigates whether the
economic norm in Japanese gasoline market is strategic complements or
strategic substitutes. It is found that the economic norm in the Japanese
gasoline market over the period 1992 to 2003 is strategic complements,
that is, 'Do it, since everyone else is doing it'. It is suggested that
some of the fall in gasoline prices said to result from successful
deregulation should really be attributed to the production expansion
derived from this strategic complementarity.
Journal: Applied Economics
Pages: 2185-2192
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903103700
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903103700
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2185-2192
Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Chih Chang
Author-X-Name-First: Ching-Chih
Author-X-Name-Last: Chang
Author-Name: Tin-Chia Lai
Author-X-Name-First: Tin-Chia
Author-X-Name-Last: Lai
Title: Nonlinear model for Panamax secondhand ship
Abstract:
Hitherto, scholarly analyses of secondhand ship prices in the
international dry bulk market have focused on Capesize. This article
adopts a nonlinear model based on the well-known Gaussian distribution
theory, with a view to examine Panamax activity from January 1996 to
December 2007. According to X-11 and Phase Average Trend (PAT) analysis,
three whole cycles were discernible during the study period. Three
nonlinear prediction models are developed, which are commensurate with
these findings. Evidently, the empirical results match the inflated
predictions of the models, with the Mean Absolute Percentage Error (MAPE)
falling below 20%.
Journal: Applied Economics
Pages: 2193-2198
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903120670
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903120670
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2193-2198
Template-Type: ReDIF-Article 1.0
Author-Name: William Lin
Author-X-Name-First: William
Author-X-Name-Last: Lin
Author-Name: Shih-Chuan Tsai
Author-X-Name-First: Shih-Chuan
Author-X-Name-Last: Tsai
Author-Name: David Sun
Author-X-Name-First: David
Author-X-Name-Last: Sun
Title: Price informativeness and predictability: how liquidity can help
Abstract:
Information asymmetry and liquidity concentration has been widely
discussed in literatures. This study shows how liquidity influences not
only forecasting performances of term structure estimation, but also
information transmission and price adjustment across markets. Our analysis
helps understanding how extreme market movements affect one another. This
study examines, and provides a rationale for incorporating, liquidity in
estimating term structure. Forecasting performance can be greatly enhanced
when conditioning on trading liquidity. It reduces information asymmetry
in the sense of Easley and O'Hara (2004) and Burlacu et al. (2007). We
adopt a time series forecasting model following Diebold and Li (2006) to
compare behaviour of forecasted price errors. Our findings indicate that
forecasted price errors in markets with less depth would influence those
with more. Information asymmetry induces volatile trading first and then
price adjustment is transmitted to another market due to insufficient
market depth. Cross-market price adjustment could be as much as 21 bps on
average. Compared with previous studies, our results establish a valid
reason to condition on liquidity when forecasting prices.
Journal: Applied Economics
Pages: 2199-2217
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903153812
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153812
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2199-2217
Template-Type: ReDIF-Article 1.0
Author-Name: Carl Gwin
Author-X-Name-First: Carl
Author-X-Name-Last: Gwin
Author-Name: David VanHoose
Author-X-Name-First: David
Author-X-Name-Last: VanHoose
Title: Search costs, sticky prices and markups
Abstract:
This article investigates how search costs, price stickiness and product
durability influence the impact of inflation on firm markups. We provide
evidence that each of these three factors plays an independent role in
influencing the responsiveness of markups to inflation. Although we find
that the direct effect of inflation on markups is negative, offsetting
positive influences of inflation on markups arise in industries that
produce durable experience goods with flexible prices. Thus, our results
indicate that markups of industries producing nondurable search goods with
sticky prices tend to experience unambiguously negative impacts from
inflation.
Journal: Applied Economics
Pages: 2219-2228
Issue: 17
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903153820
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153820
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Handle: RePEc:taf:applec:v:43:y:2011:i:17:p:2219-2228
Template-Type: ReDIF-Article 1.0
Author-Name: Sara Allin
Author-X-Name-First: Sara
Author-X-Name-Last: Allin
Author-Name: Cristina Masseria
Author-X-Name-First: Cristina
Author-X-Name-Last: Masseria
Author-Name: Elias Mossialos
Author-X-Name-First: Elias
Author-X-Name-Last: Mossialos
Title: Equity in health care use among older people in the UK: an analysis of panel data
Abstract:
This article uses panel data to investigate the extent of income-related
inequity in the likelihood of visiting a General Practitioner (GP),
specialist, dentist and hospital among individuals aged 65 years and over
in the UK. The probability of accessing health care is predicted with
separate random effects probit panel models using data from the British
Household Panel Survey (BHPS) for the period 1998 to 2006. We use
well-established methods based on the concept of the concentration curve
to compare the cumulative distribution of health care utilization with the
cumulative distribution of the population ranked by income. The results
find evidence for inequity in specialist and dental care, but only slight
inequity for GP care and not significant inequity in hospital admissions.
Levels of inequity are highest for specialist and dental care, even when
users of the private sector are excluded from analyses. The Mobility Index
(MI) is also used to compare short- and long-run estimates of inequities
and show that upwardly income mobile individuals contribute to inequity in
the long run.
Journal: Applied Economics
Pages: 2229-2239
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903196621
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903196621
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2229-2239
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Dolan
Author-X-Name-First: Paul
Author-X-Name-Last: Dolan
Author-Name: Aki Tsuchiya
Author-X-Name-First: Aki
Author-X-Name-Last: Tsuchiya
Title: Determining the parameters in a social welfare function using stated preference data: an application to health
Abstract:
One way in which economists might determine how best to balance the
competing objectives of efficiency and equality is to specify a Social
Welfare Function (SWF). This article looks at how the stated preferences
of a sample of the general public can be used to estimate the shape of the
SWF in the domain of health benefits. The results suggest that people are
willing to make trade-offs between efficiency and equality and that these
trade-offs are sensitive to what kind of inequalities exist and to the
groups across which those inequalities exist.
Journal: Applied Economics
Pages: 2241-2250
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903166244
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166244
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2241-2250
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Hanson
Author-X-Name-First: Matthew
Author-X-Name-Last: Hanson
Author-Name: Martin Schmidt
Author-X-Name-First: Martin
Author-X-Name-Last: Schmidt
Title: The impact of Coalition offensive operations on the Iraqi insurgency
Abstract:
Coalition offensive operations in Iraq seek to disrupt insurgents and
their networks, but may also act as a recruitment tool for the insurgency.
We use data from Coalition press releases and casualty reports to assess
the total impact of these operations. We find that two additional
offensive operations come at a future cost of an additional Coalition
soldier's life. The evidence suggests that rather than diminishing the
insurgents' appetite to wage counterattacks, these operations may act as a
recruitment tool for the insurgency. We further find that while the
insurgents change their level of operations in response to the Coalition,
the Coalition does not react to the insurgents.
Journal: Applied Economics
Pages: 2251-2265
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903153804
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153804
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2251-2265
Template-Type: ReDIF-Article 1.0
Author-Name: A. Assaf
Author-X-Name-First: A.
Author-X-Name-Last: Assaf
Title: Accounting for technological differences in modelling the performance of airports: a Bayesian approach
Abstract:
This article uses the innovative Bayesian random coefficient frontier
model to account for technological differences in the efficiency
measurement of UK airports. In separating cost efficiency from
technological differences, the model provides more accurate efficiency
measures for airports' policy makers. The input/output data used in
testing the model reflect on recent figures from the UK airport industry,
and as a result link the efficiency measures with the current industry
trends such as the increase in oil price, airport capital investments and
market expansion. Results from the model estimation showed that the model
fits the data well with all coefficients correctly signed and in line with
the theoretical requirements. The average cost efficiency for 2007 was
around 73.73%, indicating that UK airports are not operating close to a
full efficiency level. This article attributed the sources of
inefficiencies to the current industry trends and discussed the importance
of heterogeneity in future policy formulations at UK airports.
Journal: Applied Economics
Pages: 2267-2275
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903101779
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903101779
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2267-2275
Template-Type: ReDIF-Article 1.0
Author-Name: Thanh Le
Author-X-Name-First: Thanh
Author-X-Name-Last: Le
Author-Name: Philip Bodman
Author-X-Name-First: Philip
Author-X-Name-Last: Bodman
Title: Remittances or technological diffusion: which drives domestic gains from brain drain?
Abstract:
This article examines the impact of technological diffusion and
international migrants' remittances on the economic development of
less-developed countries. The hypothesis that skilled workers, living and
working overseas, can effectively channel technological knowledge back to
their home country, which in turn contributes to that country's economic
growth, is tested utilizing data on the stock of high-skilled workers from
50 developing countries working in industrialized countries over the last
two decades. Results obtained lend strong support to this hypothesis. In
addition, the effect that remittances from workers in developed countries,
which are used for investment purposes in developing countries, have on
the rate of growth of those developing economies is investigated. Our
empirical evidence indicates that this remittance channel exerts a
significant, positive impact on growth, although quantitatively the
contribution of such investment-oriented remittances in driving
sustainable economic development appears to be somewhat smaller than that
of more general technological diffusion.
Journal: Applied Economics
Pages: 2277-2285
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903153838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903153838
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2277-2285
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Creel
Author-X-Name-First: Michael
Author-X-Name-Last: Creel
Author-Name: Montserrat Farell
Author-X-Name-First: Montserrat
Author-X-Name-Last: Farell
Title: Modelling usage of medical care services: the medical expenditure panel survey data, 1996-2000
Abstract:
We explore the determinants of usage of six different types of health
care services, using the Medical Expenditure Panel Survey (MEPS) data,
years 1996-2000. We apply a number of models for univariate count data,
including semiparametric, semi-nonparametric and finite mixture models. We
find that the complexity of the model that is required to fit the data
well depends upon the way in which the data is pooled across sexes and
over time, and upon the characteristics of the usage measure. Pooling
across time and sexes is almost always favoured, but when more
heterogeneous data is pooled it is often the case that a more complex
statistical model is required.
Journal: Applied Economics
Pages: 2287-2302
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903166202
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166202
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2287-2302
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Guillaume Meon
Author-X-Name-First: Pierre-Guillaume
Author-X-Name-Last: Meon
Author-Name: Friedrich Schneider
Author-X-Name-First: Friedrich
Author-X-Name-Last: Schneider
Author-Name: Laurent Weill
Author-X-Name-First: Laurent
Author-X-Name-Last: Weill
Title: Does taking the shadow economy into account matter when measuring aggregate efficiency?
Abstract:
We analyse how adding the shadow economy to official output figures
affects the estimated technical efficiency at the country level. We find
that this not only slightly affects the ranking of efficiency scores, but
also increases average efficiency in a sample of 87-97 countries, both
developed and developing. Our results are robust to the functional form of
the production technology and the adjustment of labour to account for
years of schooling.
Journal: Applied Economics
Pages: 2303-2311
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903166210
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166210
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2303-2311
Template-Type: ReDIF-Article 1.0
Author-Name: Gawon Yoon
Author-X-Name-First: Gawon
Author-X-Name-Last: Yoon
Title: Structural breaks and smooth transition autoregressive processes: an application to the US stock value ratios
Abstract:
In this study, we show that a very simple structural break process can be
easily confused with an Exponential Smooth Transition Autoregressive
(ESTAR) model. Nonlinear estimates of an ESTAR model also appear to be
quite significant and plausible when the model is applied to a structural
break process. Testing for structural breaks is, therefore, imperative to
avoid finding spurious nonlinear relations. Throughout this study, we
illustrate our main findings with the value ratios from the Standard &
Poor's 500 (S&P 500) stock price.
Journal: Applied Economics
Pages: 2313-2320
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903166228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166228
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2313-2320
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Boussemart
Author-X-Name-First: Jean-Philippe
Author-X-Name-Last: Boussemart
Author-Name: Walter Briec
Author-X-Name-First: Walter
Author-X-Name-Last: Briec
Author-Name: Christophe Tavera
Author-X-Name-First: Christophe
Author-X-Name-Last: Tavera
Title: More evidence on technological catching-up in the manufacturing sector
Abstract:
Production frontiers for the manufacturing sector are estimated to
determine a 'country specific' catching-up process of Total Factor
Productivity (TFP). TFP gains were aimed at assessing the manufacturing
industry's productive performances for 14 Organization for Economic
Cooperation and Development (OECD) countries over the period 1970 to 2001.
Our TFP measure does not assume technical or allocative efficiency which
are inherent drawbacks of usual TFP indices. We show that catching-up
processes can be very different between sub-periods and across countries.
A significant catching-up process was in progress in the manufacturing
sector between 1970 and 1986, then it overturned over the period 1987 to
2001. During the first sub-period, the speed of technological catching-up
of the Eurozone countries was definitely higher than those of the other
European or OECD nations, whereas the divergence noted in the second
sub-period had the same order of magnitude amongst the three groups.
Journal: Applied Economics
Pages: 2321-2330
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903166236
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903166236
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2321-2330
Template-Type: ReDIF-Article 1.0
Author-Name: Hyeon-Seung Huh
Author-X-Name-First: Hyeon-Seung
Author-X-Name-Last: Huh
Author-Name: Hyun-Hoon Lee
Author-X-Name-First: Hyun-Hoon
Author-X-Name-Last: Lee
Title: A combined measure of UK core inflation estimates
Abstract:
This article estimates UK core inflation in a structural Vector
Autoregression (VAR) framework. While building on the work of Quah and
Vahey (1995), we extend their two-variable VAR model to allow for
different dynamics depending on the nature of the shocks that potentially
influence the process of core inflation. We also construct a combined
measure of core inflation estimates on the basis of their reliabilities.
Empirical evidence shows that the new measures demonstrate marked
improvement in their eligibility to serve as core inflation estimators.
Furthermore, the combined measure is shown to perform best. It appears
that the conventional core measures such as the retail prices excluding
mortgage interest payments (RPIX) and the Harmonized Index of Consumer
Prices (HICP) inflation series are not successful in capturing the
underlying trend of inflation, casting some doubt on their current use in
the making of monetary policy decisions.
Journal: Applied Economics
Pages: 2331-2341
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903194196
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194196
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2331-2341
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Coffey
Author-X-Name-First: Brian
Author-X-Name-Last: Coffey
Author-Name: Ted Schroeder
Author-X-Name-First: Ted
Author-X-Name-Last: Schroeder
Author-Name: Thomas Marsh
Author-X-Name-First: Thomas
Author-X-Name-Last: Marsh
Title: Disaggregated household meat demand with censored data
Abstract:
Previous research on meat demand has generally used highly aggregated
data (across time, products and consumers). However, meat products across
species are likely stronger substitutes than some products from the same
species. Further, demand for specific meat products would be expected to
respond differently to market information about food safety or other
events. This study uses monthly consumer panel data collected between 1992
and 2000 to estimate a disaggregated meat product demand system. The use
of the expectations maximization algorithm is introduced to estimate a
demand system that adjusts for the econometric problem of censored data
resulting from purchased shares of some products by individuals often
being equal to zero. Results indicate that certain individual meat
products have noticeably different own-price elasticities than existing
aggregate meat product estimates of their respective species. Some
individual meat products have stronger substitutes across species than
within species (e.g. beef steak and pork chops are substitutes, but beef
roast and ground beef or not substitutes for steak).
Journal: Applied Economics
Pages: 2343-2363
Issue: 18
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903194238
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194238
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Handle: RePEc:taf:applec:v:43:y:2011:i:18:p:2343-2363
Template-Type: ReDIF-Article 1.0
Author-Name: Emerson Fernandes Marcal
Author-X-Name-First: Emerson Fernandes
Author-X-Name-Last: Marcal
Author-Name: Pedro Valls Pereira
Author-X-Name-First: Pedro
Author-X-Name-Last: Valls Pereira
Author-Name: Diogenes Manoel Leiva Martin
Author-X-Name-First: Diogenes Manoel Leiva
Author-X-Name-Last: Martin
Author-Name: Wilson Toshiro Nakamura
Author-X-Name-First: Wilson Toshiro
Author-X-Name-Last: Nakamura
Title: Evaluation of contagion or interdependence in the financial crises of Asia and Latin America, considering the macroeconomic fundamentals
Abstract:
This article investigates the existence of contagion between countries on
the basis of an analysis of returns for stock indices over the period 1994
to 2003. The econometrics methodology used is that of multivariate
Generalized Autoregressive Conditional Heteroscedasticity (GARCH) family
volatility models, particularly the Dynamic Conditional Correlation (DCC)
models in the form proposed by Engle and Sheppard (2001). The returns were
duly corrected for a series of country-specific fundamentals. The
relevance of this procedure is highlighted in the literature by the work
of Pesaran and Pick (2003). The results obtained in this article provide
evidence favourable for the hypothesis of regional contagion in both Latin
America and Asia. As a rule, contagion spread from the Asian crisis to
Latin America, but not in the opposite direction.
Journal: Applied Economics
Pages: 2365-2379
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903194204
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194204
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Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2365-2379
Template-Type: ReDIF-Article 1.0
Author-Name: Bedri Kamil Onur Tas
Author-X-Name-First: Bedri Kamil Onur
Author-X-Name-Last: Tas
Title: Private information of the Fed and predictability of stock returns
Abstract:
This article investigates whether the Federal Reserve's (Fed's) private
Gross Domestic Product (GDP) growth forecasts, as reported in the
Greenbook of the Fed, contain information about future real and excess
stock returns. I implement long-horizon regressions to analyse the
predictive power of the Fed's GDP growth forecasts. The regressions
conclude that the Fed's GDP growth forecasts can be used to predict long-
and short-term stock returns. The size of the coefficient of the Fed's
orthogonal GDP growth forecast indicates that 1% increase in the Fed's
forecast predicts 2-4% decrease in real and excess stock returns. The
regressions considering the size effect suggest that the predictive power
of the Fed's GDP growth forecasts increases as the size of the portfolio
decreases. A comparison of the Fed's forecasts and the commercial
forecasts shows that the Fed's GDP growth forecasts contain information
that does not exist in the commercial forecasts. I investigate the sources
of the Fed's superior private information and predictive power. Analysis
suggests that the source of the predictive power of the Fed's GDP growth
forecasts is the private information about future surprise monetary policy
actions embedded in them.
Journal: Applied Economics
Pages: 2381-2398
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903194220
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194220
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Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2381-2398
Template-Type: ReDIF-Article 1.0
Author-Name: Beate Jochimsen
Author-X-Name-First: Beate
Author-X-Name-Last: Jochimsen
Author-Name: Robert Nuscheler
Author-X-Name-First: Robert
Author-X-Name-Last: Nuscheler
Title: The political economy of the German Lander deficits: weak governments meet strong finance ministers
Abstract:
We analyse the deficits of the German Lander (regional states) for the
period 1960 to 2005 and test a number of hypotheses derived from the
literature on the political economy of public deficits. We find evidence
for the weak government hypothesis, that is, coalition governments issue
significantly more debt than single party governments - a result that is
typically explained by the common pool problem. As our data suggest, this
result crucially hinges on the position or strength of the finance
minister within coalition governments. We find that coalition governments
with a strong finance minister are - in terms of borrowing - not
significantly different from single party governments. In addition, we
find (weak) evidence for an opportunistic political business cycle. As
borrowing is significantly lower in pre-election years it appears that
German voters favour fiscal discipline. There is no evidence for partisan
behaviour, so party ideology seems to play a negligible role.
Journal: Applied Economics
Pages: 2399-2415
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903194246
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903194246
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Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2399-2415
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Mossman
Author-X-Name-First: Charles
Author-X-Name-Last: Mossman
Author-Name: Sergiy Rakhmayil
Author-X-Name-First: Sergiy
Author-X-Name-Last: Rakhmayil
Title: Firm size, book-to-market ratio and the macroeconomic environment: theory and test
Abstract:
Many studies find that stock returns are related to firm size and the
book-to-market ratio. This article provides a theoretical explanation for
this phenomenon. We show that profit maximizing homogenous firms should
converge to a stable long-run equilibrium in which firm's capital size and
growth rates are shaped by the economic environment, and both influence
stock returns. Our evidence shows firm convergence towards the optimum
profitability size in a changing equilibrium. Firm characteristics reflect
sensitivity to the macroeconomic environment. Our model and empirical
tests demonstrate a linkage between this sensitivity and the relationship
of returns to market value and book-to-market.
Journal: Applied Economics
Pages: 2417-2431
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903196639
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903196639
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Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2417-2431
Template-Type: ReDIF-Article 1.0
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: Growth elasticity of poverty: direct estimates from recent data
Abstract:
Using recent poverty data for developing countries, elasticity of $2
poverty headcount with respect to the growth of Gross Domestic Product
(GDP) per capita is directly calculated for the 1990s and the 2000s. The
global estimate is around -0.84, which is much smaller in absolute
magnitude than what some highly influential studies have reported or used.
For the poverty-dense South Asia region, the elasticity is of the order of
-0.22, which is a dramatic contrast from the previous estimates. For
India, where the number of poor people is by far the largest of any
country, and where the poverty rate is higher than even in Sub-Saharan
Africa (SSA), the elasticity is of the order of -0.13, which is an even
bigger contrast from earlier studies. Policymakers and researchers are
urged to keep these estimates in mind while judging the likely effect of
income growth on poverty, and to discount poverty-reduction claims based
on higher elasticity estimates that have been reported or used in many
influential studies. In particular, the elasticities shown in this study
for South Asia and India seem to be a grim reminder of how unrealistic the
existing estimates might be.
Journal: Applied Economics
Pages: 2433-2440
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903196647
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903196647
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Template-Type: ReDIF-Article 1.0
Author-Name: Russell James
Author-X-Name-First: Russell
Author-X-Name-Last: James
Author-Name: Keely Jones
Author-X-Name-First: Keely
Author-X-Name-Last: Jones
Title: Tithing and religious charitable giving in America
Abstract:
The concept of religious tithing - giving 10% or more of one's income to
religious organizations - permeates ancient and contemporary religious
literature. Yet, the degree to which households apply this construct in
their charitable giving practices remains unclear. This study examines the
practice of tithing using data from a national expenditures survey
including 56 663 households. Despite the pervasiveness of the tithing
concept, religious donors did not appear to be targeting a specific 10%
giving level. This may have resulted from varied definitions of income for
tithing purposes or the presence of small charitable gifts made without
reference to income. While the likelihood of religious giving increased
with income, the likelihood of tithing fell dramatically. As a group,
tithers had less income, but were wealthier, more educated, older and gave
more to nonreligious charity than did other households. Religious tithers
who also gave to nonreligious charities were wealthier, older and more
highly educated than tithers who gave only to religious organizations.
Journal: Applied Economics
Pages: 2441-2450
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903213384
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903213384
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Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2441-2450
Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Jordaan
Author-X-Name-First: Jacob
Author-X-Name-Last: Jordaan
Title: Cross-sectional estimation of FDI spillovers when FDI is endogenous: OLS and IV estimates for Mexican manufacturing industries
Abstract:
Cross-sectional estimates of Foreign Direct Investment (FDI) spillovers
are biased when the variable capturing the cross-industry variation of
foreign participation is endogenous to the estimated regression model. In
this article I introduce an original instrument for this problematic FDI
variable, capturing the general FDI intensity of manufacturing industries.
I use this instrument to estimate FDI externalities in a cross-section of
Mexican manufacturing industries. The main findings show that, in contrast
to the common criticism that Ordinary Least Squares (OLS) estimation
produces an upward bias in the estimated FDI externality effect, for the
sample of Mexican manufacturing industries OLS estimation causes a
downward bias. Controlling for the tendency among foreign manufacturing
firms to gravitate towards low productivity industries, the instrumental
variable estimations provide robust evidence of significantly larger
positive FDI spillover effects.
Journal: Applied Economics
Pages: 2451-2463
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903262977
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903262977
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Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2451-2463
Template-Type: ReDIF-Article 1.0
Author-Name: Rehim Kilic
Author-X-Name-First: Rehim
Author-X-Name-Last: Kilic
Title: A conditional variance tale from an emerging economy's freely floating exchange rate
Abstract:
This article studies daily return and volatility dynamics in the exchange
rate of an emerging market economy Turkey over the recent floating period.
We use Generalized Autoregressive Conditional Heteroscedastic (GARCH) and
Fractionally Integrated GARCH (FIGARCH) models with various error
distributions. Findings show that a parsimonious FIGARCH model with an
asymmetric error distribution characterizes the daily Turkish Lira (TL)
returns against US dollar and euro considerably well. We find
statistically significant asymmetry and peakedness in conditional returns
and time-varying volatility with long-range dependence in conditional
volatility. Long memory finding is robust to different specifications for
the conditional returns as well as possible shifts in the return and
volatility dynamics over sub-periods. Results in the article show that
despite the decline in volatility over the course of the recent float, TL
returns are still wild compared to developed economies exchange rates
during the same period. Findings have implications for exchange rate
regime choice, policy and risk management in Turkey and other emerging
market economies.
Journal: Applied Economics
Pages: 2465-2480
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903266812
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903266812
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Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2465-2480
Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Wu Ho
Author-X-Name-First: Tsung-Wu
Author-X-Name-Last: Ho
Title: Intra-national risk-sharing and government sizes: evidence from nonlinear regression
Abstract:
This article investigates the effects of government sizes on the cyclical
elasticity coefficient. Theory of intra-national risk-sharing evaluates
the effects of the cyclical sensitivity of taxes to income fluctuation
across US states. Because government size is a proxy for automatic
stabilizer, which captures the relevant differences of fiscal variables at
the state level; hence, the cyclical sensitivity may differ across various
magnitudes of local government. We employ two nonlinear econometric
methods: threshold regression of panel data (Hansen, 1999) and
semi-parametric smooth-coefficient regression of cross-sectional data
(Koop and Tobias, 2006). Evidence from a panel of 50 US states supports a
positive relationship between government size and intra-national
risk-sharing.
Journal: Applied Economics
Pages: 2481-2492
Issue: 19
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299680
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299680
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Handle: RePEc:taf:applec:v:43:y:2011:i:19:p:2481-2492
Template-Type: ReDIF-Article 1.0
Author-Name: Trevon Logan
Author-X-Name-First: Trevon
Author-X-Name-Last: Logan
Title: Econometric tests of American college football's conventional wisdom
Abstract:
College football fans, coaches and observers have adopted a set of
beliefs about how college football poll voters behave. I document three
pieces of conventional wisdom in college football regarding the timing of
wins and losses, the value of playing strong opponents and the value of
winning by wide margins. Using a unique data set with 25 years of
Associated Press (AP) poll results, I use a hedonic regression to test
college football's conventional wisdom. In particular, I test (1) whether
it is better to lose early or late in the season, (2) whether teams
benefit from playing stronger opponents and (3) whether teams are rewarded
for winning by large margins. Contrary to conventional wisdom, I find that
(1) it is better to lose later in the season than earlier, (2) AP voters
do not pay attention to the strength of a defeated opponent and (3) the
benefit of winning by a large margin is negligible. I conclude by noting
how these results inform debates about a potential playoff in college
football.
Journal: Applied Economics
Pages: 2493-2518
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903286331
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903286331
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2493-2518
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Eugenio-Martin
Author-X-Name-First: Juan
Author-X-Name-Last: Eugenio-Martin
Author-Name: Juan Campos-Soria
Author-X-Name-First: Juan
Author-X-Name-Last: Campos-Soria
Title: Income and the substitution pattern between domestic and international tourism demand
Abstract:
This article analyses the role of income in the decision of participating
in the tourism demand within 1 year. The tourists who are participating
can travel to domestic destinations only, abroad destinations only or to
both of them. Such a substitution pattern is modelled using a bivariate
probit model. The analysis is carried out to the regional level using a
survey conducted in 15 European (EU-15) countries. In addition to the
traditional socioeconomic variables, the analysis adds new variables to
the outbound tourism demand modelling, such as the attributes of the place
of residence. The results show that tourism demand is income elastic.
However, there are marked differences in the income elasticities of the
probabilities of travelling domestically or abroad. Above certain income
threshold, the substitution pattern between destinations takes part. The
probability of travelling domestically only remains constant, whereas the
probability of travelling abroad keeps growing. Additionally, the article
proves that income elasticities vary significantly and nonlinearly with
income.
Journal: Applied Economics
Pages: 2519-2531
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299698
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299698
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2519-2531
Template-Type: ReDIF-Article 1.0
Author-Name: Bjørn-Roger Wilhelmsen
Author-X-Name-First: Bjørn-Roger
Author-X-Name-Last: Wilhelmsen
Author-Name: Andrea Zaghini
Author-X-Name-First: Andrea
Author-X-Name-Last: Zaghini
Title: Monetary policy predictability in the euro area: an international comparison
Abstract:
We evaluate the ability of market participants to anticipate monetary
policy decisions in 14 countries. First, by looking at both the magnitude
and volatility of changes in the money market rates we show that the days
of policy meetings are special days for financial markets. Second, we find
that the predictability of Federal Reserve (FED), Bank of England and
European Central Bank (ECB) is fully comparable. Finally, an econometric
analysis of the ability of market participants to incorporate in the
current short-term interest rates the expected policy changes shows that
in the euro area (and in other countries) policy decisions are anticipated
well in advance.
Journal: Applied Economics
Pages: 2533-2544
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299714
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299714
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2533-2544
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Jen Lin
Author-X-Name-First: Ming-Jen
Author-X-Name-Last: Lin
Author-Name: Chia-Chi Chang
Author-X-Name-First: Chia-Chi
Author-X-Name-Last: Chang
Title: Testing Coase theorem: the case of free agency in NBA
Abstract:
This study seeks to test the applicability of the Coase theorem to the
allocation of players within. According to the Coase theorem, a player's
final allocation would be the same no matter who has ownership of his
playing rights if there are no transaction costs. What ownership affects
is just the allocation of wealth. Using data from the National Basketball
Association (NBA), this article argues that player mobility is likely to
be affected by player ownership due to transaction cost imposed by the
institution. It is also concluded that performance indicators used for
value estimation vary by position and that this also affects player
transfer.
Journal: Applied Economics
Pages: 2545-2558
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299722
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299722
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2545-2558
Template-Type: ReDIF-Article 1.0
Author-Name: Maik Schmeling
Author-X-Name-First: Maik
Author-X-Name-Last: Schmeling
Title: Consumption, money and excess returns
Abstract:
We augment the standard Consumption Capital Asset Pricing Model (CCAPM)
by the growth in money holdings and empirically investigate whether money
is helpful for pricing a cross-section of US excess returns. We find that
the growth in M2 significantly improves the fit of the CCAPM with R2s well
above 80% in a cross-section with the three Fama-French factors, the
momentum portfolio, a contrarian portfolio and two bond portfolios as test
assets.
Journal: Applied Economics
Pages: 2559-2563
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299730
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299730
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2559-2563
Template-Type: ReDIF-Article 1.0
Author-Name: Werner Holzl
Author-X-Name-First: Werner
Author-X-Name-Last: Holzl
Author-Name: Andreas Reinstaller
Author-X-Name-First: Andreas
Author-X-Name-Last: Reinstaller
Title: On the heterogeneity of sectoral growth and structural dynamics: evidence from Austrian manufacturing industries
Abstract:
This article studies the factors driving structural dynamics across
Austrian manufacturing industries. Using a Structural Vector
Autoregressive Model (SVAR) framework we identify sectoral labour
productivity and demand shocks that are orthogonal to aggregate shocks. We
analyse the sectoral impulse-response patterns and find that the effect of
industry labour productivity shocks on industry output growth is quite
heterogeneous. We devise a taxonomy that allows us to classify industries
according to the effect productivity and demand shocks have on output
growth. We also show that productivity shocks are quite heterogeneous not
just across industries but also over time, whereas shocks to sectoral
demand growth are more systematic. We test the taxonomy in a panel
regression and are able to confirm our sector-specific findings. Industry
demand shocks and aggregate productivity and demand shocks lead always to
an increase in industry output and industry employment.
Journal: Applied Economics
Pages: 2565-2582
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299748
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299748
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2565-2582
Template-Type: ReDIF-Article 1.0
Author-Name: Lusine Lusinyan
Author-X-Name-First: Lusine
Author-X-Name-Last: Lusinyan
Author-Name: John Thornton
Author-X-Name-First: John
Author-X-Name-Last: Thornton
Title: Unit roots, structural breaks and cointegration in the UK public finances, 1750-2004
Abstract:
In this article, we report results from several traditional and more
recently developed unit root and cointegration tests, allowing for
structural breaks, which indicate that UK government revenue and spending
during 1750-2004 were I(1) series and cointegrated, and that the UK public
finances have been on a consistently sustainable path over the long run.
Journal: Applied Economics
Pages: 2583-2592
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299755
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299755
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2583-2592
Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Chuan Yeh
Author-X-Name-First: Chih-Chuan
Author-X-Name-Last: Yeh
Author-Name: Kuan-Min Wang
Author-X-Name-First: Kuan-Min
Author-X-Name-Last: Wang
Author-Name: Yu-Bo Suen
Author-X-Name-First: Yu-Bo
Author-X-Name-Last: Suen
Title: A quantile framework for analysing the links between inflation uncertainty and inflation dynamics across countries
Abstract:
In contrast to the conventional conditional mean approaches, this study
uses quantile regression techniques to present some new statistical
evidence on the links between inflation uncertainty and the level of
inflation with cross-sectional data from 90 countries during the period
1961 to 2006. The results suggest that positive inflation shocks have
stronger impact on inflation uncertainty which varies across the
quantiles. Furthermore, popular time-series models are evaluated for their
ability to reproduce measures of uncertainty and indicate similar results
regarding the relationships between inflation and inflation uncertainty.
Journal: Applied Economics
Pages: 2593-2602
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299763
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299763
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2593-2602
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Quatraro
Author-X-Name-First: Francesco
Author-X-Name-Last: Quatraro
Title: ICT capital and services complementarities: the Italian evidence
Abstract:
This article investigates whether Information and Communication
Technologies (ICTs) hardware and services play a complementary role in
boosting economic growth. The main argument is that investments in ICT
fixed capital are a necessary but not sufficient condition leading to
productivity gains, above all in late adopter countries. Their effective
implementation indeed requires on the one hand a changing economic
structure characterized by a growing weight of service sectors and on the
other hand complementary investments in ICT services, directed to ease the
integration of the new technologies within firms' boundaries. The analysis
is conducted on a late industrialized country like Italy, and shows that
in lagging countries the weak impact of ICT adoption is the result of
three converging forces: relatively high share of manufacturing sectors,
low-adoption levels of ICTs in traditional manufacturing sectors,
inadequate investments in ICT services.
Journal: Applied Economics
Pages: 2603-2613
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299805
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2603-2613
Template-Type: ReDIF-Article 1.0
Author-Name: Tiziana Laureti
Author-X-Name-First: Tiziana
Author-X-Name-Last: Laureti
Author-Name: Alessandro Viviani
Author-X-Name-First: Alessandro
Author-X-Name-Last: Viviani
Title: Competitiveness and productivity: a case study of Italian firms
Abstract:
The purpose of this article is to obtain a synthetic measure of the
multi-dimensional concept of firm competitiveness and to analyse the role
of different factors, such as productivity, firm size and cluster of
industries, for determining firm competitiveness in Italy. An adequate
firm-specific data set is constructed from balance sheets by using
imputation methods for handling missing values. The synthetic measure of
competitiveness is obtained using a Data Envelopment Analysis (DEA)
approach, then a Tobit model is considered to measure the influence of
different factors on the measured competitiveness. The results obtained
are very interesting and coherent with the characteristics of the Italian
firms.
Journal: Applied Economics
Pages: 2615-2625
Issue: 20
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903357439
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357439
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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2615-2625
Template-Type: ReDIF-Article 1.0
Author-Name: Kuang-Liang Chang
Author-X-Name-First: Kuang-Liang
Author-X-Name-Last: Chang
Title: The optimal value-at-risk hedging strategy under bivariate regime switching ARCH framework
Abstract:
Unlike the majority of other hedging literatures in which variance is
taken as the risk indicator, this article uses the Value-at-Risk (VaR) as
the risk management tool of the hedged portfolio. This article adopts a
bivariate Markov regime Switching Autoregressive Conditional
Heteroscedastic (SWARCH) model to formulate the optimal VaR hedging
strategy and then compares it with the other dynamic futures hedging
strategies mentioned in the literature in hedging performance. Using
Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) futures
data, the in-sample and out-of-sample results shows that when VaR is used
as the criterion to measure the futures hedging effectiveness, the
performance of the dynamic hedging strategy is superior to that of the
static hedging strategy, and the performance of the optimal VaR hedging
strategy is better than that of the minimum variance and mean-variance
hedging strategies. Besides, from the standpoint that the volatility of
hedge ratio and hedged portfolio variance decline, no matter what kind of
hedging strategy is adopted, the regime switching model is better in
in-sample and out-of-sample hedging effectiveness than the Generalized
Autoregressive Conditional Heteroscedastic (GARCH) model.
Journal: Applied Economics
Pages: 2627-2640
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299771
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299771
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2627-2640
Template-Type: ReDIF-Article 1.0
Author-Name: Hua Wang
Author-X-Name-First: Hua
Author-X-Name-Last: Wang
Author-Name: Jie He
Author-X-Name-First: Jie
Author-X-Name-Last: He
Title: Estimating individual valuation distributions with multiple bounded discrete choice data
Abstract:
This article presents a new modelling strategy that estimates individual
valuation distributions with Multiple Bounded Discrete Choice (MBDC) data.
An individual's valuation of a commodity or service is assumed to have a
distribution rather than being a single number. Likelihood responses to
the MBDC questions are numerically coded and treated with a new panel
technique. The proposed estimation strategy is empirically compared with
previous data analysis methods.
Journal: Applied Economics
Pages: 2641-2656
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299789
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299789
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2641-2656
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Luc Demeulemeester
Author-X-Name-First: Jean-Luc
Author-X-Name-Last: Demeulemeester
Author-Name: Claude Diebolt
Author-X-Name-First: Claude
Author-X-Name-Last: Diebolt
Author-Name: Magali Jaoul-Grammare
Author-X-Name-First: Magali
Author-X-Name-Last: Jaoul-Grammare
Title: The growth of aggregate wage earnings in Germany, 1810-1989
Abstract:
Aggregate wage earnings are one of the key variables of the German
economy. Paradoxically, it is also a little known variable, especially in
the long term. Historians have never devoted a synthesis to the subject
and, among all the economists who have centred their work on the study of
economic growth, Hoffmann (1965) is the only one to have addressed
aggregate earnings over a long period. This article follows up his
founding work and has two objectives. The first is to measure the movement
of wages and wage earners over a long period and use this to make an
original estimate of aggregate employment earnings in Germany from 1810 to
1989. Reconstituted sets of statistics are also used to put forward new
hypotheses concerning the way is which wages, wage earners and aggregate
employment earnings in Germany are linked to the socioeconomic development
of the country in the 19th and 20th centuries. It is also sought to detect
the temporary and permanent shocks that have affected the German economy
since the beginning of the 19th century. Our reflection is in two parts.
The first defines the concept of wages, sets out the spatial scope and
describes the methodological constraints. The second describes our
cliometric results.
Journal: Applied Economics
Pages: 2657-2669
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299813
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2657-2669
Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Ganoulis
Author-X-Name-First: Ioannis
Author-X-Name-Last: Ganoulis
Author-Name: Massimo Giuliodori
Author-X-Name-First: Massimo
Author-X-Name-Last: Giuliodori
Title: Financial liberalization and house price dynamics in Europe
Abstract:
This article investigates the determinants of house prices in a sample of
European countries over the period 1970 to 2004. Focusing on the role of
financial liberalization, we find that it has mainly affected the
short-term dynamics of residential prices. In particular, the impulse
effects on house prices of income and mortgage debt have become smaller.
On the other hand, the effects of interest rates, past house prices and,
to a lesser degree, stock market have strengthened. In other words, there
seems to have been a certain 'de-linking' of short-term house price
dynamics from income, whereas the housing market may have become more
similar to a financial asset market, with interest rates and expectations
of capital gains playing a more prominent role.
Journal: Applied Economics
Pages: 2671-2688
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903315494
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903315494
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2671-2688
Template-Type: ReDIF-Article 1.0
Author-Name: Helmut Stix
Author-X-Name-First: Helmut
Author-X-Name-Last: Stix
Title: Euroization: what factors drive its persistence? Household data evidence for Croatia, Slovenia and Slovakia
Abstract:
The question asked in this article is why people continue to use foreign
currencies even after their economies have stabilized. Survey data for
Croatia, Slovenia and Slovakia are employed to provide an answer. The
results confirm the role of network effects and of remittances.
Furthermore, the extent of currency substitution is found to be positively
associated with the level of income and education. An important aspect of
euroization seems to be age (older people are more likely to hold foreign
currencies). In contrast, neither expectations about inflation rates, nor
about exchange rates, do seem to affect the degree of euroization in a
systematic and predictable way. Trust in the banking system is found to
affect the choice between foreign currency cash and foreign currency
deposits. Overall, the results support the view that the persistence in
the use of foreign currencies is driven to a large extent by factors that
are related to the past.
Journal: Applied Economics
Pages: 2689-2704
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903357413
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357413
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2689-2704
Template-Type: ReDIF-Article 1.0
Author-Name: Michael French
Author-X-Name-First: Michael
Author-X-Name-Last: French
Author-Name: Johanna Catherine Maclean
Author-X-Name-First: Johanna Catherine
Author-X-Name-Last: Maclean
Author-Name: Jody Sindelar
Author-X-Name-First: Jody
Author-X-Name-Last: Sindelar
Author-Name: Hai Fang
Author-X-Name-First: Hai
Author-X-Name-Last: Fang
Title: The morning after: alcohol misuse and employment problems
Abstract:
Using a rich, recent and nationally representative longitudinal survey
specifically designed to examine alcohol use and associated problems, we
investigate the effects of alcohol misuse on a series of understudied and
perhaps less common employment problems. Such problems include being fired
or laid off from a job, sustained unemployment and conflicts with a
supervisor and/or co-worker. After controlling for time-invariant omitted
variables via fixed effects estimation, we find evidence that three
measures of alcohol misuse are significantly related to employment
problems. The results offer new information on the potential adverse
labour market effects of alcohol misuse and shed light on potential
mechanisms through which alcohol misuse may impact intensive labour supply
and/or wages.
Journal: Applied Economics
Pages: 2705-2720
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903357421
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357421
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2705-2720
Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Di Bartolomeo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Di Bartolomeo
Author-Name: Lorenza Rossi
Author-X-Name-First: Lorenza
Author-X-Name-Last: Rossi
Author-Name: Massimiliano Tancioni
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Tancioni
Title: Monetary policy, rule-of-thumb consumers and external habits: a G7 comparison
Abstract:
This article extends the standard New Keynesian Dynamic Stochastic
General Equilibrium (DSGE) model to agents who cannot smooth consumption
(i.e. spenders) and are affected by external consumption habits. Although
these assumptions are not new, their joint consideration strongly affects
some theoretical and empirical results addressed by the recent literature.
By deriving closed-form solutions, we identify different demand regimes
and show that they are characterized by specific features regarding
dynamic stability and monetary policy effectiveness. We also evaluate our
model by stochastic simulations obtained from the Bayesian parameters
estimates for the Group of Seven (G7) economies. From posterior impulse
responses, we address the empirical relevance of the different regimes and
provide comparative evidence on the heterogeneity of monetary policy
effects among countries.
Journal: Applied Economics
Pages: 2721-2738
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903357447
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357447
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2721-2738
Template-Type: ReDIF-Article 1.0
Author-Name: Sumon Kumar Bhaumik
Author-X-Name-First: Sumon Kumar
Author-X-Name-Last: Bhaumik
Author-Name: Jeffrey Nugent
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Nugent
Title: Real options and demographic decisions: empirical evidence from East and West Germany
Abstract:
Iyer and Velu (2006) have convincingly argued that contemporary analyses
of fertility behaviour fail to explain why a woman (or a couple) will
choose to postpone childbirth, and in particular to consider the role of
uncertainty in this regard. They have addressed this lacuna in the
literature by using a real options approach to model fertility decisions
by relating uncertainty experienced by individuals to the likelihood of
childbirth. However, they did not present empirical evidence. Since the
theory implies the existence of two offsetting effects of uncertainty on
fertility decisions, a positive insurance effect and a negative option
value effect, it is not easy to reject the theory on the basis of
empirical analysis, when one of these effects offsets the other. We
construct such a test for East (and also West) Germany during that
country's reunification, which takes advantage of the fact that because of
the country's strong welfare system, the insurance effect should be
dominated by the option value effect, thereby suggesting that the net
relationship should be negative. The results provide rather strong support
for the real options link, especially for Eastern Germany.
Journal: Applied Economics
Pages: 2739-2749
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903373287
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903373287
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2739-2749
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Knabe
Author-X-Name-First: Andreas
Author-X-Name-Last: Knabe
Author-Name: Steffen Ratzel
Author-X-Name-First: Steffen
Author-X-Name-Last: Ratzel
Title: Quantifying the psychological costs of unemployment: the role of permanent income
Abstract:
Unemployment causes significant losses in the quality of life. In
addition to reducing individual income, it also creates nonpecuniary and
psychological costs. We quantify these nonpecuniary losses by using the
life satisfaction approach. In contrast to previous studies, we apply
Friedman's (1957) permanent income hypothesis by distinguishing between
temporary and permanent effects of income changes. This allows us to
account for intertemporal spillovers of income compensations. Our results
show that the nonpecuniary costs of unemployment are only half as large
compared to a standard estimation without this distinction. Nevertheless,
the nonpecuniary costs of unemployment calculated with this modified
quantification method are still about two times higher than its pecuniary
costs. This confirms the high value of work for life satisfaction.
Journal: Applied Economics
Pages: 2751-2763
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903373295
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903373295
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2751-2763
Template-Type: ReDIF-Article 1.0
Author-Name: D. Contreras
Author-X-Name-First: D.
Author-X-Name-Last: Contreras
Author-Name: L. de Mello
Author-X-Name-First: L.
Author-X-Name-Last: de Mello
Author-Name: E. Puentes
Author-X-Name-First: E.
Author-X-Name-Last: Puentes
Title: The determinants of labour force participation and employment in Chile
Abstract:
Chile's labour force participation is low in comparison with Organization
for Economic Co-operation and Development (OECD) and Latin American
countries on average, especially among females and youths. This article
estimates the main determinants of labour supply and employment for
prime-age individuals and youths using data from the National Household
Survey (CASEN) for 1990, 1996 and 2003. Educational attainment is found to
be a powerful predictor of labour supply and employability for both males
and females. The number of young children in the household is a strong
deterrent to female participation, both for prime-age and young women.
Changes in labour supply and employment during 1990 and 2003 are
decomposed using the probit estimations. The results suggest that
structural changes in the economy were the main determinants of changes in
participation among prime-age individuals, but the converse is true for
changes in employment, which depended predominantly on shifts in
individual characteristics.
Journal: Applied Economics
Pages: 2765-2776
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903373303
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903373303
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2765-2776
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Schneider
Author-X-Name-First: Martin
Author-X-Name-Last: Schneider
Author-Name: Gerhard Fenz
Author-X-Name-First: Gerhard
Author-X-Name-Last: Fenz
Title: Transmission of business cycle shocks between the US and the euro area
Abstract:
We analyse the transmission of structural shocks between the US and the
euro area within a two-country Vector Autoregressive (VAR) framework. For
that purpose, we simultaneously identify cost-push, demand and monetary
policy shocks for both countries using sign restrictions. Our results show
that domestic shocks explain the largest share of the forecast error
variances for Gross Domestic Product (GDP), consumer prices and interest
rate in both countries in the short run, whilst spillovers from the other
country and global factors gain importance in the medium run. The strength
of the shock transmission between the two countries is quite symmetric.
Our approach to the identification of structural shocks allows us to
construct confidence bands that account both for estimation and
identification uncertainty. We find impulse responses to domestic shocks
to be significant while spillovers across countries are insignificant.
Journal: Applied Economics
Pages: 2777-2793
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903373311
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903373311
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2777-2793
Template-Type: ReDIF-Article 1.0
Author-Name: Hsin-Hung Chen
Author-X-Name-First: Hsin-Hung
Author-X-Name-Last: Chen
Author-Name: Hsien-Tang Tsai
Author-X-Name-First: Hsien-Tang
Author-X-Name-Last: Tsai
Author-Name: Dennis Lin
Author-X-Name-First: Dennis
Author-X-Name-Last: Lin
Title: Optimal mean-variance portfolio selection using Cauchy-Schwarz maximization
Abstract:
Fund managers highly prioritize selecting portfolios with a high Sharpe
ratio. Traditionally, this task can be achieved by revising the objective
function of the Markowitz mean-variance portfolio model and then resolving
quadratic programming problems to obtain the maximum Sharpe ratio
portfolio. This study presents a closed-form solution for the optimal
Sharpe ratio portfolio by applying Cauchy-Schwarz maximization and the
concept of Kuhn-Tucker conditions. An empirical example is used to
demonstrate the efficiency and effectiveness of the proposed algorithms.
Moreover, the proposed algorithms can also be used to obtain the optimal
portfolio containing large numbers of securities, which is not possible,
or at least is complicated via traditional quadratic programming
approaches.
Journal: Applied Economics
Pages: 2795-2801
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903388285
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903388285
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2795-2801
Template-Type: ReDIF-Article 1.0
Author-Name: Morteza Haghiri
Author-X-Name-First: Morteza
Author-X-Name-Last: Haghiri
Author-Name: Alireza Simchi
Author-X-Name-First: Alireza
Author-X-Name-Last: Simchi
Title: A nonparametric extension of generalized quadratic Box-Cox models in measuring technical efficiency
Abstract:
This article uses a nonparametric extension of estimating Generalized
Quadratic Box-Cox (GQBC) models using the Additivity and Variance
Stabilization (AVAS) algorithm. The new method accounts for random noise
in the data and relaxes the sensitivity of technical efficiency scores to
the choice of functional form. It also provides more flexible choices for
estimating the parameter of the dependent variable. The model is specified
to measure technical efficiency scores of New York dairy producers in the
period 1990 to 2000. Results show that the sample producers did not use
resources efficiently, as the estimated mean technical efficiency score
was found to be 0.663.
Journal: Applied Economics
Pages: 2803-2810
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903389804
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903389804
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2803-2810
Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Fen Hsieh
Author-X-Name-First: Meng-Fen
Author-X-Name-Last: Hsieh
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Title: Business cycles and bank regulations - what happens to bank provisioning? A more comprehensive look at 49 countries
Abstract:
Numerous researchers provide evidence that many banks intend to increase
their Loan Loss Provisioning (LLP) when the economy is in a downward
trend. However, the answer whether banks provide sufficient provisions
when the economy is in an upturn trend remains unsolved. Furthermore,
provisioning must be influenced not only by business cycles and bank
earnings, but also by the regulatory system. Nevertheless, empirical
research on this issue has been scarce. Thus, this study intends to answer
two questions shown above. The evidence shows that with steady growth in
both the economy and bank earnings, the bank management will tend to
increase LLP, whereas with a buoyant economy but negative growth in bank
earnings, the management will exhibit an inclination to reduce LLP. As
regards the influence of bank regulation on provisions, the evidence shows
that, under certain circumstances, banks make more provision based on
regulatory considerations. This explains why bank regulations regarding
LLP across countries do have an impact on banks' provisioning behaviour.
Journal: Applied Economics
Pages: 2811-2822
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903389812
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903389812
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2811-2822
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Cebula
Author-X-Name-First: Richard
Author-X-Name-Last: Cebula
Author-Name: Christopher Coombs
Author-X-Name-First: Christopher
Author-X-Name-Last: Coombs
Title: The influence of the number of statewide legislative referendums on voter participation in the US
Abstract:
This empirical study seeks to broaden the interpretation of the 'rational
voter model' so as to include the potential effects of the number of
statewide legislative referendums. This study tests the hypothesis that
greater numbers of such referendums increase voter turnout because they
elevate the Expected Gross Benefits (EGB) of voting by 'empowering voters'
while not significantly increasing the Expected Gross Costs (EGC) of
voting. Using state-level data for the 2006 general election in the US, as
well as the 2004 US Presidential election, and after allowing for a
variety of economic and demographic factors, this study finds compelling
evidence that the number of statewide legislative referendums does
significantly increase voter turnout.
Journal: Applied Economics
Pages: 2823-2831
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903389820
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903389820
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2823-2831
Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Farrell
Author-X-Name-First: Lisa
Author-X-Name-Last: Farrell
Author-Name: Tim Fry
Author-X-Name-First: Tim
Author-X-Name-Last: Fry
Author-Name: Mark Harris
Author-X-Name-First: Mark
Author-X-Name-Last: Harris
Title: 'A pack a day for 20 years': smoking and cigarette pack sizes
Abstract:
This study focuses on the determinants of cigarette consumption. In
particular, the impact of cigarette pack sizes on the typical daily
consumption of smokers is investigated. Results are presented from a new
multi-modal count data model which allows for 'pack-effects' in daily
consumption levels. Our results suggest that smokers regulate their
consumption in accordance with the variety of pack sizes that are
available to them.
Journal: Applied Economics
Pages: 2833-2842
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903389838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903389838
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2833-2842
Template-Type: ReDIF-Article 1.0
Author-Name: M. Adetunji Babatunde
Author-X-Name-First: M. Adetunji
Author-X-Name-Last: Babatunde
Title: A bound testing analysis of Wagner's law in Nigeria: 1970-2006
Abstract:
This study tests Wagner's law (the tendency for government activities to
expand along with economic expansion) for Nigeria using annual time series
data between 1970 and 2006. It adopts the bounds test approach proposed by
Pesaran et al. (2001) based on unrestricted error correction model
(UECM) and Toda and Yamamoto's (1995) Granger noncausality tests.
Empirical results from the bounds test indicate that there exists no
long-run relationship between government expenditure and output in
Nigeria. In addition, Toda and Yamamoto's (1995) causality test results
show that Wagner's law does not hold for more than the period being
tested. Rather we found a weak empirical support in the proposition by
Keynes that public expenditure is an exogenous factor and a policy
instrument for increasing national income.
Journal: Applied Economics
Pages: 2843-2850
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903425012
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903425012
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2843-2850
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Ho
Author-X-Name-First: Catherine
Author-X-Name-Last: Ho
Author-Name: M. Ariff
Author-X-Name-First: M.
Author-X-Name-Last: Ariff
Title: Sticky prices and time to equilibrium: evidence from Asia-Pacific trade-related economies
Abstract:
The theoretical relation between exchange rate and prices has been a
difficult proposition to find supporting evidence despite many studies of
developed economies using standard research methods. The exchange rate to
price relation appears to hold in the long run only, a result consistent
with sticky price hypothesis. There is a need to add to this sticky price
literature by examining more yet-studied economies to this area of
research. This article presents results to support long-run equilibrium in
the Asia-Pacific economies as being 5 years. The methodology is used to
group countries with high-trade intensity within a region and value-weight
the resulting variables to test the theory in a regional context. Our
positive finding on the long-run equilibrium, we believe, helps in some
ways to enrich the literature on the exchange rate behaviour of an
important region for world trade.
Journal: Applied Economics
Pages: 2851-2861
Issue: 21
Volume: 43
Year: 2011
X-DOI: 10.1080/09603100903425189
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09603100903425189
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Handle: RePEc:taf:applec:v:43:y:2011:i:21:p:2851-2861
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Taylor
Author-X-Name-First: Mark
Author-X-Name-Last: Taylor
Title: The applied economics of industry: introduction and overview
Abstract:
We provide an introduction and overview to the 10 applied economics
studies making up this special-themed issue on The Applied Economics of
Industry. The studies cover a wide range of topics, and employ a variety
of applied techniques.
Journal: Applied Economics
Pages: 2863-2864
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2011.608266
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2011.608266
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Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2863-2864
Template-Type: ReDIF-Article 1.0
Author-Name: Y. Li
Author-X-Name-First: Y.
Author-X-Name-Last: Li
Author-Name: W. Lu
Author-X-Name-First: W.
Author-X-Name-Last: Lu
Author-Name: M. Zhong
Author-X-Name-First: M.
Author-X-Name-Last: Zhong
Title: The predictability of industry portfolio returns
Abstract:
This article studies the predictability of stock returns from industry
portfolios. Consistent with the habit formation framework of Campbell and
Cochrane (1999, 2000), we find that reasonably large portions of
predictability of long-horizon industry portfolio returns are explained by
the ratio of aggregate consumption in surplus of habit or its instrument,
the consumption-wealth ratio. The time-varying βs and, more
importantly, time-varying market risk premium associated with either the
surplus consumption ratio or the consumption-wealth ratio help explain the
predictable variation of long-horizon expected returns on over half of the
industry portfolios. The conditional Capital Asset Pricing Model (CAPM)
with βs varying with the proposed conditioning variable performs
better than the static CAPM, but not as well as the Fama-French (1993,
1997) three-factor model in explaining the time-series variability of
returns.
Journal: Applied Economics
Pages: 2865-2881
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802360260
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802360260
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Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2865-2881
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick McCarthy
Author-X-Name-First: Patrick
Author-X-Name-Last: McCarthy
Author-Name: Aselia Urmanbetova
Author-X-Name-First: Aselia
Author-X-Name-Last: Urmanbetova
Title: Production and cost in the US paper and paperboard industry
Abstract:
The US paper and paperboard industry has experienced significant
structural changes over the past 25 years, including reductions in the
number of mills, lower rates of capacity growth, employment cutbacks and a
loss of market share to foreign competitors. These structural shifts
portray an industry that increasingly has difficulty adapting to a more
competitive global environment. Based on aggregate data from 1965 to 1996,
this article estimates a short-run translog (TL) cost function for the
industry. The estimated model fits the data well and all sample points
satisfy monotonicity and concavity conditions at all points. Among the
findings, the industry operates at slightly increasing returns to capital
utilization and labour and energy are Allen-Uzawa complements but
Morishima substitutes in production. Technological progress generated
0.02% reduction in annual operating costs and consistent with an ailing US
industry, estimated marginal costs approximated average operating costs
until 1982 after which marginal costs significantly diverged from average
operating costs.
Journal: Applied Economics
Pages: 2883-2893
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802599883
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802599883
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Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2883-2893
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Laurent Botti
Author-X-Name-First: Laurent
Author-X-Name-Last: Botti
Author-Name: Nicolas Peypoch
Author-X-Name-First: Nicolas
Author-X-Name-Last: Peypoch
Author-Name: Bernardin Solonandrasana
Author-X-Name-First: Bernardin
Author-X-Name-Last: Solonandrasana
Title: Managerial efficiency and hospitality industry: the Portuguese case
Abstract:
In this article, the innovative twostage procedure of Simar and Wilson
(2007) is used to estimate the efficiency determinants of Portuguese hotel
groups from 1998 to 2005. In the first stage, the hotels' technical
efficiency is estimated with Data Envelopment Analysis (DEA), in order to
establish which hotels have the most efficient performance. These could
serve as peers to help improve performance of the least efficient hotels.
In the second stage, the Simar and Wilson model is used to bootstrap the
DEA scores with a truncated regression. The article contributes to the
hotel industry literature by adopting a somewhat novel approach that has
never been applied to this industry despite its managerial implications.
The motivation for the analysis lies in the fact that during the period
under analysis Portuguese hotels faced a number of threats. Knowing what
the best practices are is then good news for managers and institutions.
Journal: Applied Economics
Pages: 2895-2905
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600145
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600145
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Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2895-2905
Template-Type: ReDIF-Article 1.0
Author-Name: Henrik Hammar
Author-X-Name-First: Henrik
Author-X-Name-Last: Hammar
Author-Name: Tommy Lundgren
Author-X-Name-First: Tommy
Author-X-Name-Last: Lundgren
Author-Name: Magnus Sjostrom
Author-X-Name-First: Magnus
Author-X-Name-Last: Sjostrom
Author-Name: Matts Andersson
Author-X-Name-First: Matts
Author-X-Name-Last: Andersson
Title: The kilometer tax and Swedish industry-effects on sectors and regions
Abstract:
An introduction of a kilometer tax for heavy goods vehicles can be
constrained by the risk of that higher production costs than competitors
in other countries will negatively affect regions and industries of policy
concern. We estimate factor demand elasticities in the Swedish
manufacturing industry using firm level data for the 1990 to 2001 period
on input prices and quantities. The results show that the introduction of
a kilometer tax for heavy goods vehicles decreases transport demand and
increases labour demand. The effects are less pronounced in terms of
changes in output, though some industries (e.g. wood, pulp and paper) can
be expected to be affected more than others due to their dependence on
road freight transport. The regional dimension regarding the consequences
of a kilometer tax seems to be small or even nonexisting.
Journal: Applied Economics
Pages: 2907-2917
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802600608
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802600608
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Template-Type: ReDIF-Article 1.0
Author-Name: Johannes Fedderke
Author-X-Name-First: Johannes
Author-X-Name-Last: Fedderke
Author-Name: Dietmar Naumann
Author-X-Name-First: Dietmar
Author-X-Name-Last: Naumann
Title: An analysis of industry concentration in South African manufacturing, 1972-2001
Abstract:
This article examines industry concentration for the South African
manufacturing sector over the 1972-2001 period, for the three-digit
industry classification. The article notes both the high level of industry
concentration in South African manufacturing and a rising trend in
concentration across a wide range of industries as measured by the Gini
and Rosenbluth coefficients. The article examines the impact of
concentration on investment rates using a dynamic heterogeneous panel
estimation methodology. We find that increased concentration unambiguously
lowers investment rates.
Journal: Applied Economics
Pages: 2919-2939
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840802631835
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840802631835
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Template-Type: ReDIF-Article 1.0
Author-Name: Uwe Cantner
Author-X-Name-First: Uwe
Author-X-Name-Last: Cantner
Author-Name: Jens Kruger
Author-X-Name-First: Jens
Author-X-Name-Last: Kruger
Author-Name: Kristina von Rhein
Author-X-Name-First: Kristina
Author-X-Name-Last: von Rhein
Title: Knowledge compensation in the German automobile industry
Abstract:
In studies looking at firm survival over the industry life cycle
knowledge is one of the most important determinants. Different kinds of
knowledge, namely post-entry experience, pre-entry experience and
knowledge acquired by innovative activity positively influence the
survival chances. This article investigates how different kinds of
knowledge are able to compensate each other. A statistical survival
analysis is performed for the German automobile industry (1886-1939) which
applies an estimation approach that links instrumental variables with the
Cox regression. The results highlight that innovative activity is able to
compensate for lacking post-entry experience, supporting Schumpeterian
creative destruction.
Journal: Applied Economics
Pages: 2941-2951
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840902762738
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840902762738
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Template-Type: ReDIF-Article 1.0
Author-Name: Clarissa Yeap
Author-X-Name-First: Clarissa
Author-X-Name-Last: Yeap
Title: Capacity use in multi-unit firms: evidence for efficiency gains or strategic competition in the US restaurant industry?
Abstract:
In this article, I examine both the full firm size distribution and
establishment-level capacity use to determine if efficiency gains or
strategic competition account for the proliferation of multi-unit firms in
the US restaurant industry. Using US census microdata, I find that
multi-unit firms operate a greater number of restaurants and larger
individual restaurants in larger Metropolitan Statistical Areas (MSAs).
This evidence of increased profitability goes hand in hand with increases
in capacity utilization through longer operating hours and more intensive
production of meals and nonmeals output at individual establishments.
Greater capacity exploitation is consistent with efficient firms, rather
strategic behaviour, such as product proliferation or location preemption
to limit rivalry. Furthermore, these results hold true for multi-unit
firms but not for large national chain systems, suggesting that efficiency
gains accrue from firm-specific capital, not just from marketing or
distribution scale economies.
Journal: Applied Economics
Pages: 2953-2968
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903299797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903299797
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Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2953-2968
Template-Type: ReDIF-Article 1.0
Author-Name: Bi-Huei Tsai
Author-X-Name-First: Bi-Huei
Author-X-Name-Last: Tsai
Author-Name: Yiming Li
Author-X-Name-First: Yiming
Author-X-Name-Last: Li
Title: Modelling competition in global LCD TV industry
Abstract:
This work analyses global shipments of Liquid Crystal Display Televisions
(LCD TVs) by considering mutualism among multiple generations of LCD TVs.
In applying the revised Lotka-Volterra equations, this study analyses the
dynamic competitive relationship among producers of 26-, 32- and 37-inch
LCD TVs. Equilibrium analysis is used to evaluate whether future shipment
orbit could converge to equilibrium status. The prediction abilities of
Bass growth model and Lotka-Volterra model are further compared to examine
whether the Lotka-Volterra model, which incorporates the mutualism among
multi-generation LCD TVs, performs better. The result shows that the
relationships between 26- and 32-inch LCD TVs, and 37- and 32-inch LCD TVs
are commensal. Sales of 32-inch LCD TVs are promoted by increased sales of
26- or 37-inch LCD TVs. Results of the equilibrium analysis indicate that
competition among various sizes of LCD TVs will not be stable. The
interactions among multiple generations of LCD TVs will influence each
other, leading to great fluctuations in sales. Since this study
incorporates the interactive relationships among various sizes of LCD TVs
in the proposed Lotka-Volterra equations, the ability of the
Lotka-Volterra model to predict the market evolution of LCD TVs is
superior to that of the Bass model.
Journal: Applied Economics
Pages: 2969-2981
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.530222
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.530222
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Template-Type: ReDIF-Article 1.0
Author-Name: Lila Truett
Author-X-Name-First: Lila
Author-X-Name-Last: Truett
Author-Name: Dale Truett
Author-X-Name-First: Dale
Author-X-Name-Last: Truett
Title: The Korean textile industry: still competitive, after all these years?
Abstract:
Although a vital part of the economy, the Korean textile industry has
been challenged by the recent reduction of international trade barriers,
particularly as this industry was fully integrated into General Agreement
on Tariffs and Trade (GATT) in 2005. The textile industries in Japan and
many other countries have also faced difficulties. This study examines
future prospects for the Korean industry by investigating the presence of
economies of scale and relationships among the inputs of domestic capital,
labour and intermediate goods, as well as foreign intermediate goods. The
findings are consistent with constant returns to scale and a substitutes
relationship among all input pairs except for domestic capital and foreign
intermediate goods. Thus, there appear to be no further cost reductions
available through increased output and economies of scale. However, some
reduction in industry output may not result in increased unit costs
either. A reduction in the price of foreign intermediate goods will not
only increase the demand for domestic capital, but also, at least in the
short run, add stress to the industry as it decreases the demand for
domestic labour and domestic intermediate goods.
Journal: Applied Economics
Pages: 2983-2992
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.528374
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.528374
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Template-Type: ReDIF-Article 1.0
Author-Name: Louis Lu
Author-X-Name-First: Louis
Author-X-Name-Last: Lu
Title: Before and after the millennium: productivity analysis of the supply chain of Taiwan's IC industry
Abstract:
Taiwan's Integrated Circuit (IC) industry has achieved excellent
performance in the past decades. However, it has also consumed a lot of
national resources in both human capital and financial capital. National
valuable resources are limited and, as such, allocating resources to the
most effective sector is critical for enhancing national competitiveness
further in the future. This study adopts the Data Envelopment Analysis
(DEA) method to evaluate the production efficiency of Taiwan's IC
subsectors. 10 years of data, from 1995 to 2004, have been used to conduct
the research. The productivities before and after the year 2000 are
compared to see if there are any differences between the periods of
economic upturn and downturn. The analysis finds that the IC design sector
is the most worthwhile one in which a country's treasurable resources can
be invested. However, the IC manufacturing and IC testing/packaging
sectors are inefficient over an economic downturn due to their heavy
capital investment. The results provide some insights for policy-makers.
Journal: Applied Economics
Pages: 2993-2996
Issue: 22
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903357348
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903357348
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Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Moscone
Author-X-Name-First: Francesco
Author-X-Name-Last: Moscone
Title: Geographical variations in expenditure of learning disability services in England
Abstract:
This article investigates the determinants of local authority Learning
Disability (LD) expenditure in England. It adopts a reduced form of demand
and supply model, extended to account for possible interdependence between
municipalities. Risk factors such as 'people aged under 14', 'mortality
rate' and 'lone parents' seem to play an important role in explaining
geographical variation of spending. Further, labour municipalities on
average allocate lower resources on LD than do other political parties.
Finally, results corroborate recent findings in economics that authorities
interact with each other when allocating public resources.
Journal: Applied Economics
Pages: 2997-3005
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903425194
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903425194
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:2997-3005
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Harris
Author-X-Name-First: Richard
Author-X-Name-Last: Harris
Author-Name: Qian Cher Li
Author-X-Name-First: Qian Cher
Author-X-Name-Last: Li
Title: Participation in export markets and the role of R&D: establishment-level evidence from the UK Community Innovation Survey 2005
Abstract:
There is a strong expectation in the literature that exporting and
innovation activities (particularly R&D) are strongly related, and that
the need to be innovative is increasing over time due to globalization. In
this study, we find that R&D is endogenous in a model that determines
which British establishments enter export markets, and when such
simultaneity is taken into account the strength of the export-innovation
relationship is generally quite weak (especially in the nonmanufacturing
sector). Rather, we find that the size of establishments and firms,
foreign ownership, the extent of international co-operation and, most
importantly, the industry sector to which the establishment belongs, are
the most significant in explaining which establishments are able to
overcome entry barriers into overseas markets.
Journal: Applied Economics
Pages: 3007-3020
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903427190
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427190
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3007-3020
Template-Type: ReDIF-Article 1.0
Author-Name: Egon Franck
Author-X-Name-First: Egon
Author-X-Name-Last: Franck
Author-Name: Stephan Nuesch
Author-X-Name-First: Stephan
Author-X-Name-Last: Nuesch
Title: The effect of wage dispersion on team outcome and the way team outcome is produced
Abstract:
The impact of intra-team pay dispersion on team productivity is a highly
discussed issue. On the one hand, wage differentials provide incentives
for higher employee effort. On the other hand, pay inequality may reduce
team cohesiveness and increase feelings of relative deprivation leading to
lower performance. Analysing nonlinear effects of wage dispersion in
professional soccer, we find empirical evidence that team performance is
strongest when there is either very high or very low wage inequality.
Medium levels produce the weakest team performance. In addition, we show
that the pay structure affects the team's playing style even after
controlling for team and coach heterogeneity. We discuss the theoretical
and managerial implications as well as the limits of generalization.
Journal: Applied Economics
Pages: 3037-3049
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903427224
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427224
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Template-Type: ReDIF-Article 1.0
Author-Name: Fredrik Andersson
Author-X-Name-First: Fredrik
Author-X-Name-Last: Andersson
Author-Name: Iben Bolvig
Author-X-Name-First: Iben
Author-X-Name-Last: Bolvig
Author-Name: Matthew Freedman
Author-X-Name-First: Matthew
Author-X-Name-Last: Freedman
Author-Name: Julia Lane
Author-X-Name-First: Julia
Author-X-Name-Last: Lane
Title: Lost jobs and health insurance: an analysis of the impact of employment volatility on firm-provided health insurance
Abstract:
It is an established fact that there are high levels of employment
volatility in the US. Despite the importance of employer-provided benefits
in the US health insurance system the impact of prior job instability on
one's future ability to obtain insurance coverage is not well understood.
This article finds a negative relationship between the volatility of a
worker's employment and her likelihood of receiving firm-provided health
insurance. Previous employment volatility reduces each of the four factors
necessary to receive such insurance: a worker's subsequent chances of
getting a job, her chances of getting a job in a firm that offers
coverage, her chances of staying with the firm long enough to become
eligible for coverage and her ability to take up insurance if offered. The
most important impact is on the last: her ability to take up insurance if
offered. Lack of employment is not the only, and not even the largest,
barrier to individual coverage under this system. This finding has
important policy implications, particularly given the recent tendency of
employers to shift the cost of insurance premiums onto their employees.
Journal: Applied Economics
Pages: 3051-3073
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903427232
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427232
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3051-3073
Template-Type: ReDIF-Article 1.0
Author-Name: Chrysovalantis Karafillis
Author-X-Name-First: Chrysovalantis
Author-X-Name-Last: Karafillis
Author-Name: Evaggelos Papanagiotou
Author-X-Name-First: Evaggelos
Author-X-Name-Last: Papanagiotou
Title: Innovation and total factor productivity in organic farming
Abstract:
This article measures the contribution of innovations to Total Factor
Productivity (TFP) of organic olive farmers. By constructing an innovation
variable instead of using a time trend, technical change is replaced by
technical difference and TFP growth becomes TFP difference. Primary
cross-section data on organic olive enterprises from a Greek region is
used in the application of the stochastic frontier profit function.
Farmers are classified into groups according to their innovative
'profile'. TFP difference among consecutive innovation groups is
decomposed into technical difference and adjustment in innovativeness
effects. Results indicate that more innovative farmers perform better than
less innovative ones regarding TFP scores. The rate of technical
difference is always positive to the formation of TFP difference, whereas
the adjustment in innovativeness effects varies among the innovation
groups. Nevertheless, high-tech capital is to a different extent
under-utilized, regardless of the innovation group.
Journal: Applied Economics
Pages: 3075-3087
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903427240
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427240
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3075-3087
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Hopp
Author-X-Name-First: Christian
Author-X-Name-Last: Hopp
Author-Name: Finn Rieder
Author-X-Name-First: Finn
Author-X-Name-Last: Rieder
Title: What drives venture capital syndication?
Abstract:
Using a sample of 1485 funded firms in Germany, we analyse the driving
forces of Venture Capitalist (VC) syndication and try to disentangle the
circumstances under which VCs engage in collaboration with partners. The
results indicate that syndication is more pronounced for younger funded
firms. For firms where products are far from commercialization, the risks
that investors face are more severe. With respect to disentangling the
role of diversification and managerial resource motives we analyse the
impact of syndication activities on the industry concentration in VC
portfolios. The results indicate that (all else equal) more syndication
leads to more pronounced concentration on certain industries. These
findings are in line with the argument that VCs involve partners to
leverage upon their idiosyncratic skills and knowledge to either improve
deal selection and/or provide a better quality of managerial advice to the
funded firm rather than simply using syndication to diversify portfolios.
Journal: Applied Economics
Pages: 3089-3102
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903427257
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427257
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3089-3102
Template-Type: ReDIF-Article 1.0
Author-Name: Chuang Yuang Lin
Author-X-Name-First: Chuang Yuang
Author-X-Name-Last: Lin
Author-Name: Dar Hsin Chen
Author-X-Name-First: Dar Hsin
Author-X-Name-Last: Chen
Author-Name: Chin Yu Tsai
Author-X-Name-First: Chin Yu
Author-X-Name-Last: Tsai
Title: The limitation of monotonicity property of option prices: an empirical evidence
Abstract:
Many option pricing models are based on the assumption that the
underlying asset price follows one-dimensional diffusion process. An
alternative approach is to test the properties that should hold for all
models based on a given stochastic process for the underlying asset.
Following Perignon (2006), we test the empirical validity of the
monotonicity property for option prices by collecting all transaction data
from 1 July 2006 to 31 December 2006 for option contracts traded on the
Taiwan Futures Exchange (TAIFEX). We find that sampled intraday option
prices violate the monotonicity property between 29.97% and 57% of the
time, and that call and put prices often increase, or decrease, together.
We also find evidence to show that the frequent violations of the
monotonicity property are to a large extent attributable to microstructure
effects and that they arise from rational trading tactics.
Journal: Applied Economics
Pages: 3103-3113
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903427265
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903427265
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3103-3113
Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Mastrogiacomo
Author-X-Name-First: Mauro
Author-X-Name-Last: Mastrogiacomo
Author-Name: Nicole Bosch
Author-X-Name-First: Nicole
Author-X-Name-Last: Bosch
Title: Tax credits, labour participation and home production in the Netherlands
Abstract:
We set up a dynamic reduced form model of labour market participation for
women who balance career and motherhood. The model accounts for the
occurrence of future child birth and early retirement, and includes home
production; however, it does not require the estimation of a structural
model. Careful implementation of pension institutions can return optimal
life patterns of participation without the need of a structural approach.
The weaker theoretical framework is compensated by the rich spectrum of
possible policy simulations. As illustration, we simulate the effect of
two tax credits policy options on the hazard rate out of work.
Journal: Applied Economics
Pages: 3115-3128
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903459953
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903459953
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3115-3128
Template-Type: ReDIF-Article 1.0
Author-Name: William Blankenau
Author-X-Name-First: William
Author-X-Name-Last: Blankenau
Author-Name: Steven Cassou
Author-X-Name-First: Steven
Author-X-Name-Last: Cassou
Title: Industry estimates of the elasticity of substitution and the rate of biased technological change between skilled and unskilled labour
Abstract:
We estimate the elasticity of substitution between skilled and unskilled
labour and the pace of skill-biased technological change at the industry
level. The data is compiled from the March extract of the Current
Population Survey (CPS) from 1968 to 2006. Industry information provided
by the survey is used to group workers into 13 industry categories and
education levels are used to dichotomize workers as skilled or unskilled.
We construct measures of the ratio of skilled to unskilled employment and
the ratio of skilled to unskilled wages in each industry. Using a
relationship implied by profit maximizing behaviour on the part of
representative firms, this data generates estimates of structural
parameters. We find considerable differences across industries in the
elasticity of substitution between skilled and unskilled labour.
Furthermore, while most industries have experienced skill-biased
technological change, the pace of this change has varied widely across
industries.
Journal: Applied Economics
Pages: 3129-3142
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903476361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903476361
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3129-3142
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Glass
Author-X-Name-First: Anthony
Author-X-Name-Last: Glass
Title: The rise and fall of Railtrack PLC: an event study
Abstract:
Forming Railtrack was a key part of the privatization of British Rail
(BR). Railtrack took over the ownership of BR's fixed infrastructure in
April 1994 and its parent company, the Railtrack Group, was floated in May
1996 on the London Stock Exchange (LSE). Despite the group posting some
excellent financial results in the early years, Railtrack's record on
infrastructure improvement and safety was frequently criticized. This
apparent inconsistency between shareholder interests and public service
obligations culminated in Railtrack being placed in administration in
October 2001. In view of this apparent inconsistency and the High Court
claim for additional compensation brought against the government by a
group of 49 000 small investors, the reaction of the stock market to 19
key events is modelled. Among other things, we find when Railtrack
announced after the fatal derailment of a high-speed train near the
Hertfordshire town of Hatfield that there would be a 6-month programme of
emergency track repairs, the Group's share price was marked down, but it
did not plummet. Even though Railtrack was in panic mode, it appears that
investors decided to hold onto their shares, believing the panic would
have no long-term repercussions. This proved to be a huge error of
judgement.
Journal: Applied Economics
Pages: 3143-3153
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903476379
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903476379
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3143-3153
Template-Type: ReDIF-Article 1.0
Author-Name: Michiel van Leuvensteijn
Author-X-Name-First: Michiel
Author-X-Name-Last: van Leuvensteijn
Author-Name: Jacob Bikker
Author-X-Name-First: Jacob
Author-X-Name-Last: Bikker
Author-Name: Adrian van Rixtel
Author-X-Name-First: Adrian
Author-X-Name-Last: van Rixtel
Author-Name: Christoffer Kok Sørensen
Author-X-Name-First: Christoffer Kok
Author-X-Name-Last: Sørensen
Title: A new approach to measuring competition in the loan markets of the euro area
Abstract:
This article is the first that applies a new measure of competition, the
Boone indicator, to the banking industry. This approach is able to measure
competition of bank market segments, such as the loan market, whereas many
well-known measures of competition can consider the entire banking market
only. Like most other model-based measures, this approach ignores
differences in bank product quality and design, as well as the
attractiveness of innovations. We measure competition on the lending
markets in the five major EU countries as well as, for comparison, the UK,
the US and Japan. Our findings indicate that over the period 1994-2004 the
US had the most competitive loan market, whereas overall loan markets in
Germany and Spain were among the best competitive in the EU. The
Netherlands occupied a more intermediate position, whereas in Italy
competition declined significantly over time. The French, Japanese and UK
loan markets were generally less competitive.
Journal: Applied Economics
Pages: 3155-3167
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903493234
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903493234
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3155-3167
Template-Type: ReDIF-Article 1.0
Author-Name: Norbert Michel
Author-X-Name-First: Norbert
Author-X-Name-Last: Michel
Title: Another look at the spending response to the 2001 income tax rebates
Abstract:
This article revisits the spending response to the 2001 US tax rebates by
focussing on two key aspects of how tax policy researchers use the
Consumer Expenditure Survey (CEX). These two attributes, which are often
overlooked, are as follows: the measures used for consumption and the
'outlier' criteria applied to the data. First, I reproduce the results in
Johnson et al. (2006), which (using the CEX) concluded that households
immediately spent 20-40% of their rebates on nondurable consumption goods.
Then, I show how making two changes - both of which are relied upon in the
literature - affects their results. These adjustments reduce the estimated
magnitude of the rebate's impact by as much as 100%.
Journal: Applied Economics
Pages: 3169-3174
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903493242
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903493242
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3169-3174
Template-Type: ReDIF-Article 1.0
Author-Name: Armando Barrientos
Author-X-Name-First: Armando
Author-X-Name-Last: Barrientos
Author-Name: Rachel Sabates-Wheeler
Author-X-Name-First: Rachel
Author-X-Name-Last: Sabates-Wheeler
Title: Strategic complementarities and social transfers: how do PROGRESA payments impact nonbeneficiaries?
Abstract:
The article examines local economy effects of social transfers by
focusing on food consumption and asset holdings of noneligible households
in rural Mexico following the introduction of Programa de Educacion, Salud
y Alimentacion (PROGRESA) in 1997. The quasi experimental nature of the
evaluation data collected for the purposes of evaluating the impact of
PROGRESA enables comparison of welfare indicators among noneligible
households in treatment areas and control areas. The analysis finds that
noneligible households in treatment areas show significantly higher levels
of food consumption and asset holdings following the introduction of
PROGRESA, compared to noneligible households in control areas. These
results are interpreted to suggest that transfers in poor rural areas in
Mexico enable agents to interact more strategically such that
nonbeneficiaries, as well as beneficiaries, reap consumption and
production advantages.
Journal: Applied Economics
Pages: 3175-3185
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903493259
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903493259
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3175-3185
Template-Type: ReDIF-Article 1.0
Author-Name: Anh Tran
Author-X-Name-First: Anh
Author-X-Name-Last: Tran
Author-Name: Bang Nam Jeon
Author-X-Name-First: Bang Nam
Author-X-Name-Last: Jeon
Title: The dynamic impact of macroeconomic factors on initial public offerings: evidence from time-series analysis
Abstract:
This article examines the explanatory power and the dynamic impact of
macroeconomic conditions on Initial Public Offering (IPO) activities in US
during the period from 1970 to 2005. Applying time-series econometric
techniques, we find the existence of long-run equilibrium relationships
between IPO activities and selected macroeconomic variables. Stock market
performance and volatility are shown to play the most important role in
the timing of IPOs. The Fed funds rate and the 10 year US Treasury Bond
(TB) yield play a comparable role in determining the amount of proceeds
raised in the IPOs. There also exist different short-run dynamic
adjustment mechanisms between IPOs and macroeconomic factors towards the
long run equilibrium path and they are mostly completed within the period
of 6 months to 1 year. The results have some useful implications for
forecasting IPO activities.
Journal: Applied Economics
Pages: 3187-3201
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903493267
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903493267
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3187-3201
Template-Type: ReDIF-Article 1.0
Author-Name: Tarja Viitanen
Author-X-Name-First: Tarja
Author-X-Name-Last: Viitanen
Title: Child care voucher and labour market behaviour: experimental evidence from Finland
Abstract:
This article provides experimental estimates of the impact of a voucher
for private care on labour force participation and use of private and
public child care within the Nordic system of universal provision of
public care. In a market that was providing high-quality, low-cost public
child care, a voucher is nevertheless found to have a significant,
positive effect for the use of private child care with zero effects on
either use of public care or labour force participation. The use of
private increased by five percentage points in the whole country and by
five to seven percentage points in areas that suffer from excess demand
for child care as a result of the introduction of the private child care
voucher.
Journal: Applied Economics
Pages: 3203-3212
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903508346
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508346
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3203-3212
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Ferrero
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Ferrero
Author-Name: Andrea Nobili
Author-X-Name-First: Andrea
Author-X-Name-Last: Nobili
Author-Name: Patrizia Passiglia
Author-X-Name-First: Patrizia
Author-X-Name-Last: Passiglia
Title: Assessing excess liquidity in the euro area: the role of sectoral distribution of money
Abstract:
The strong and prolonged deviation of money growth from its reference
value since 2001 has caused concern among policy-makers about the upside
risks to price stability from monetary developments. In this article we
provide evidence that these risks might have been smaller until 2005 than
regularly assumed. Three basic findings support this view. First, a
sectoral breakdown of money holdings shows that current excess liquidity
conditions have been partly related to the acceleration of nonbank
financial intermediaries' money demand, as well as to the accumulation of
marketable instruments. Such increases are likely to be associated more to
portfolio choices than to transaction motives. Second, evidence from
balance sheet data on investment funds points to a general increase in the
relative importance of this sector in the economy, rather than to a higher
degree of liquidity of their asset positions, thus reflecting, to a large
extent, a permanent change in the financial structure of the economy.
Third, excess liquidity measures that exclude nonbank financial
intermediaries' money holdings have more predictive power for future
inflation at medium-term horizons than those that include them.
Journal: Applied Economics
Pages: 3213-3230
Issue: 23
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903508353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508353
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Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3213-3230
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Massomeh Hajilee
Author-X-Name-First: Massomeh
Author-X-Name-Last: Hajilee
Title: Impact of exchange rate uncertainty on commodity trade between US and Sweden
Abstract:
Previous studies that investigated the effects of exchange rate
uncertainty on the trade flows of Sweden employed aggregate trade data
either between Sweden and the rest of the world or at bilateral level
between Sweden and her major trading partners. In this article, we
disaggregate the trade data and employ the import and export data from 87
industries that trade between Sweden and the US. We find that exchange
rate volatility has significant short-run effects on the trade flows
between the two countries in almost two-third of the industries. However,
the short-run effects are translated into the long-run effects in
one-third of the cases. Furthermore, the real depreciation of krona
against the dollar was found to have favourable effects on the overall
trade balance between the two countries.
Journal: Applied Economics
Pages: 3231-3251
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903508361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508361
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3231-3251
Template-Type: ReDIF-Article 1.0
Author-Name: George Symeonidis
Author-X-Name-First: George
Author-X-Name-Last: Symeonidis
Title: Competition and the relative productivity of large and small firms
Abstract:
Using a comprehensive dataset on the incidence of price-fixing across
British manufacturing industries in the 1950s, I compare collusive and
competitive industries and find evidence of a negative relationship
between collusion and the labour productivity of larger firms relative to
smaller firms. In particular, collusion is associated with a reduction or
even a reversal of the productivity gap between larger and smaller firms.
This result is robust to controlling for the potential endogeneity of
collusion.
Journal: Applied Economics
Pages: 3253-3264
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903508379
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508379
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3253-3264
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Aguilar
Author-X-Name-First: Francisco
Author-X-Name-Last: Aguilar
Title: Conjoint analysis of industry location preferences: evidence from the softwood lumber industry in the US
Abstract:
Conjoint Analysis (CA) was used to study location preferences among
members of the softwood lumber industry in the southern and western
regions of the US. This industry was selected as an example of a
resource-based industry to test several hypotheses derived from location
theory. Decision-makers, owners and managers, identified price of logs and
distance to sources for logs as the most important location factors. A
secondary category included wages and energy costs. Other variables such
as cost of land, quality of access roads and distance to markets are less
important. There were statistically significant differences in the
part-worth estimates of raw materials and wage costs among decision-makers
but not between regions in an ordered model for site preference. Marginal
analysis of the price of logs stressed its importance as the major
location factor in the softwood lumber industry.
Journal: Applied Economics
Pages: 3265-3274
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903508387
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508387
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3265-3274
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Murphy
Author-X-Name-First: Sean
Author-X-Name-Last: Murphy
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Author-Name: Jonathan Yoder
Author-X-Name-First: Jonathan
Author-X-Name-Last: Yoder
Author-Name: Daniel Friesner
Author-X-Name-First: Daniel
Author-X-Name-Last: Friesner
Title: Patients' perceptions and treatment effectiveness
Abstract:
An extensive literature relating patients' expectations to treatment
outcomes has not addressed the determinants of these expectations. We
argue that treatment history is part of a reference point that influences
the patients' expectations of how effective further treatment might be,
thus influencing whether to proceed with additional treatment or not. We
hypothesize that those patients with unsuccessful prior treatments have
diminished expected improvement from subsequent treatments. Prospect
Theory (PT) provides a theoretical foundation for reference frame effects,
and the model is tested with data on patients diagnosed with Idiopathic
Intracranial Hypertension (IIH). Our results support the reference frame
hypothesis.
Journal: Applied Economics
Pages: 3275-3288
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903508395
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508395
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3275-3288
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Ding Li
Author-X-Name-First: Ding
Author-X-Name-Last: Li
Author-Name: Yang-Cheng Lu
Author-X-Name-First: Yang-Cheng
Author-X-Name-Last: Lu
Author-Name: Chia-Hao Lee
Author-X-Name-First: Chia-Hao
Author-X-Name-Last: Lee
Title: Purchasing power parity for East-Asia countries: further evidence based on panel stationary test with multiple structural breaks
Abstract:
In this article, we re-investigate the validity of Purchasing Power
Parity (PPP) for a sample of 10 East-Asia countries over the period of
January 1987 to June 2005, using a recently developed econometric
technique of the panel stationary test with multiple structural breaks,
proposed by Carrion-i-Silvestre et al. (2005). This test considers
multiple structural breaks positioned at different unknown dates and a
different number of breaks for each individual. Empirical evidence shows
that the PPP holds true for half of 10 East-Asia countries during the
research period. Our results have important policy implications for these
10 East-Asia countries under study.
Journal: Applied Economics
Pages: 3289-3298
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903508403
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903508403
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3289-3298
Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Mazzanti
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Mazzanti
Author-Name: Anna Montini
Author-X-Name-First: Anna
Author-X-Name-Last: Montini
Author-Name: Francesco Nicolli
Author-X-Name-First: Francesco
Author-X-Name-Last: Nicolli
Title: Embedding landfill diversion in economic, geographical and policy settings
Abstract:
We analyse the process of landfill diversion embedding the dynamics in a
frame where economic, geographical and policy variables enter the arena.
We aim at investigating in depth what main drivers may be responsible for
such a phenomenon. We exploit a rich panel dataset covering all the 103
Italian provinces. The case study on Italy is worth being considered
provided that Italy is a main country in the EU, thus offering important
pieces of information on the evaluation of policies. Evidence shows that
the observed decoupling between economic growth and landfilling is driven
by a mix of structural factors, as population density and waste management
strategies. If on the one hand, the landfill tax is not arising as a
significant driver of the phenomenon, other waste management instruments
are associated with high significant negative effect on landfilled waste.
In association to the features of the tariff system, we also underline the
key role played by the share of separated collection in driving down
landfilling of waste. Both the evolution of collection and tariff system
are joint factors that may drive a wedge between the comparative waste
performances of northern and southern regions.
Journal: Applied Economics
Pages: 3299-3311
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903559612
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903559612
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3299-3311
Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Alexander
Author-X-Name-First: Marcus
Author-X-Name-Last: Alexander
Author-Name: Matthew Harding
Author-X-Name-First: Matthew
Author-X-Name-Last: Harding
Author-Name: Carlos Lamarche
Author-X-Name-First: Carlos
Author-X-Name-Last: Lamarche
Title: Quantifying the impact of economic crises on infant mortality in advanced economies
Abstract:
Policy makers rely on a mix of government spending and tax cuts to
address the imbalances in the economy during an economic crisis, by
promoting price stability and renewed economic growth. However, little
discussion appears to focus explicitly on quantifying the cost of economic
crises in terms of human lives, especially the lives of the most
vulnerable members of society, infants. Using a statistical approach that
is robust to the increases of mortality in outlying years, we quantify the
effect that economic crises, periods of prolonged economic recession, have
on infant mortality. Moreover, we investigate whether different levels of
public spending on health across advanced industrialized democracies can
mitigate the impact of crises on infant mortality. We find that economic
crises are extremely costly and lead to a more than proportional increase
in infant mortality in the short-run. Substantial public spending on
health is required in order to limit their impact.
Journal: Applied Economics
Pages: 3313-3323
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036840903559620
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036840903559620
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3313-3323
Template-Type: ReDIF-Article 1.0
Author-Name: James Thornton
Author-X-Name-First: James
Author-X-Name-Last: Thornton
Title: Does more medical care improve population health? New evidence for an old controversy
Abstract:
This article investigates the aggregate relationship between medical care
and health for the US population. I use annual state level panel data for
the period 1983 to 2000 to estimate static and dynamic health production
function models. I find no compelling evidence that greater aggregate
utilization of medical care from application of existing technology
improves population health by lowering mortality in the short run or long
run. My results suggest that development of new medical technologies that
diffuse rapidly throughout the nation and at different rates across states
may well explain much of the decline in the age-adjusted death rate over
the past several decades, as well as persistent differences in mortality
across geographic regions. Overall, my findings suggest that the US may be
experiencing 'flat of the curve medicine' with future improvements in
mortality from medical care coming from new and better technologies rather
than greater intensity of services.
Journal: Applied Economics
Pages: 3325-3336
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636243
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636243
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3325-3336
Template-Type: ReDIF-Article 1.0
Author-Name: Szymon Wlazlowski
Author-X-Name-First: Szymon
Author-X-Name-Last: Wlazlowski
Author-Name: Bjorn Hagstromer
Author-X-Name-First: Bjorn
Author-X-Name-Last: Hagstromer
Author-Name: Monica Giulietti
Author-X-Name-First: Monica
Author-X-Name-Last: Giulietti
Title: Causality in crude oil prices
Abstract:
Crude oil markets witness growing disparity between the quality of crudes
supplied and demanded in the market. The market share of low-quality
crudes is increasing due to the depletion of old fields and increasing
demand. This is unnerving the practitioners and affecting the relevance of
the traditional benchmark crudes due to the lack of lower quality
benchmarks (Montepeque, 2005). In this article, we apply Granger causality
tests to study the price dependence of 32 crudes in order to establish
which crudes drive other prices and which ones simply follow general
market trends. Our results indicate that some of the old benchmarks are
still relevant while others can be disregarded. Our results also
interestingly show that the low-quality Mediterranean Russian Urals crude,
introduced in the late 1990s, has emerged recently as a significant driver
of global prices.
Journal: Applied Economics
Pages: 3337-3347
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636250
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636250
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3337-3347
Template-Type: ReDIF-Article 1.0
Author-Name: Mete Feridun
Author-X-Name-First: Mete
Author-X-Name-Last: Feridun
Title: Impact of terrorism on tourism in Turkey: empirical evidence from Turkey
Abstract:
This article aims at investigating the causal impact of terrorist attacks
on the tourism industry in Turkey based on the Autoregressive Distributed
Lag (ARDL) bounds testing procedure for the period between 1986 and 2006.
The ARDL bounds test reveals that tourism is in a long-run equilibrium
level relationship with terrorism. The evidence obtained from the long-run
and short-run parameter estimates indicates the existence of a negative
causal effect of terrorism on tourism.
Journal: Applied Economics
Pages: 3349-3354
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636268
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636268
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3349-3354
Template-Type: ReDIF-Article 1.0
Author-Name: Katarina Nordblom
Author-X-Name-First: Katarina
Author-X-Name-Last: Nordblom
Title: The complex attitudes to alcohol taxation
Abstract:
Alcoholic beverages are taxed at very different rates across the EU,
which implies extensive cross-border shopping. Therefore, there is an
ongoing debate about harmonization of alcohol taxes among countries.
Sweden, with a tradition of high alcohol taxes due to public health
arguments, has the highest excise duties on spirits in the EU. But,
because of this, the occurrence and possible problems caused by
cross-border shopping are also extensive. Using a questionnaire survey I
analyse the Swedes' attitudes to alcohol taxation and find that these two
sides of the coin are important determinants. Many respondents want to
decrease the alcohol tax, while some even want to increase it. Those most
positive to alcohol taxation are those who regard increased alcohol
consumption as a worrying problem and those living in areas where many
adults are treated for alcohol-related diseases. However, the
ordered-probit analysis also shows that those who support the EU
membership are more supportive of reduced taxation to harmonize the
Swedish tax with those in other EU countries. Those who live in regions
where privately imported alcohol is substantial are also more reluctant to
alcohol taxation.
Journal: Applied Economics
Pages: 3355-3364
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636276
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636276
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3355-3364
Template-Type: ReDIF-Article 1.0
Author-Name: Woojin Chung
Author-X-Name-First: Woojin
Author-X-Name-Last: Chung
Author-Name: Monica Das Gupta
Author-X-Name-First: Monica Das
Author-X-Name-Last: Gupta
Title: Factors influencing 'missing girls' in South Korea
Abstract:
Despite the massive attention drawn to 'missing girls,' there has been no
study that specifically focuses on the association between childlessness
and the daughter deficit. Using a bivariate probit selection model, this
article analysed the data for 6475 married women aged 15-49 years
collected from the 2003 Korea National Fertility and Family Health Survey.
The results showed that a couple's decision to have a child exerted a
significant influence on its daughter deficit. This study also found that
the effect of a woman's education on daughter deficit did not correspond
to that of her husband's level of education. Additionally, a prediction
was made that if a one child family norm were prevailing in South Korea,
the probability of a couple's having a daughter deficit would increase by
as much as 63.9%.
Journal: Applied Economics
Pages: 3365-3378
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636284
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636284
File-Format: text/html
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3365-3378
Template-Type: ReDIF-Article 1.0
Author-Name: Joanne Xiaolei Qian
Author-X-Name-First: Joanne Xiaolei
Author-X-Name-Last: Qian
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Educational expenditure in urban China: income effects, family characteristics and the demand for domestic and overseas education
Abstract:
Analysing survey data from 32 selected cities across China in 2003, this
article examines parents' expenditure on their children's education from
two aspects: factors affecting domestic education expenditure and factors
affecting expenditure on overseas education. The main findings that emerge
from this study are as follows. First, household income has significant
effects on the magnitude of the domestic and overseas educational
expenditures. Second, households where mothers have senior secondary
school or college education, and fathers are working in professional
occupations are likely to spend more on education for their children.
Third, being in the highest income category, having a college-educated
father, having a mother who is a cadre or middle professional and living
in a coastal area significantly enhances the probabilities for the
households sending their children overseas for education.
Journal: Applied Economics
Pages: 3379-3394
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636292
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636292
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3379-3394
Template-Type: ReDIF-Article 1.0
Author-Name: G. J. Power
Author-X-Name-First: G. J.
Author-X-Name-Last: Power
Author-Name: C. Turvey
Author-X-Name-First: C.
Author-X-Name-Last: Turvey
Title: What explains long memory in futures price volatility?
Abstract:
Long memory in futures price volatility is a well-documented stylized
fact with implications for market efficiency, risk management, forecasting
and option pricing bias. The implications of long-memory differ, however,
based on whether it is of a 'fractional' or of a 'stochastic' type. The
aims of this article are to determine, in the case of agricultural
commodity futures data, which type better describes price volatility and
also to evaluate several competing explanations for findings of long
memory. The evidence presented here finds little support for three out of
four potential explanations, namely, excessive noise in the volatility
measure, bias in the long-memory estimator and understated SEs of the
long-memory parameter. For the data considered, price volatility appears
to be most likely generated by a nonfractional long-memory process such as
a stochastic break or stochastic unit root.
Journal: Applied Economics
Pages: 3395-3404
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636300
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636300
File-Format: text/html
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3395-3404
Template-Type: ReDIF-Article 1.0
Author-Name: Shin-Yun Wang
Author-X-Name-First: Shin-Yun
Author-X-Name-Last: Wang
Author-Name: Cheng-Few Lee
Author-X-Name-First: Cheng-Few
Author-X-Name-Last: Lee
Title: Fuzzy multi-criteria decision-making for evaluating mutual fund strategies
Abstract:
Investors often need to evaluate investment strategies according to their
own subjective preferences based upon various criteria. This situation can
be regarded as a Fuzzy Multiple Criteria Decision-Making (FMCDM) problem.
The purpose of this study is to propose an FMCDM approach with fuzzy
integral. This approach relaxes the independence assumption among criteria
for the evaluation of the Multiple Criteria Decision-Making (MCDM)
problems, which is oftentimes the basic assumption in applying
hierarchical system for evaluating the strategies of selecting investment
style. We also employ Triangular Fuzzy Numbers (TFNs) to represent the
decision-makers' subjective preferences on the criteria, as well as for
the criteria measurements to evaluate mutual funds investment style. To
achieve this objective, first, we employ factor analysis to extract four
independent common factors from those criteria. Second, we construct the
evaluation frame using hierarchical system composed of four common factors
with 16 evaluation criteria, and then derive the relative weights with
respect to the considered criteria. Third, the synthetic utility value
corresponding to each mutual fund's investment style is aggregated by the
fuzzy weights with fuzzy performance values. Finally, we compare with
empirical data and find that the model of FMCDM predicts the rate of
return very accurately in certain ranges of λ, hence the nonadditive
fuzzy integral technique is an effective method for evaluating mutual
funds' strategy.
Journal: Applied Economics
Pages: 3405-3414
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636318
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636318
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3405-3414
Template-Type: ReDIF-Article 1.0
Author-Name: Pinar Celikkol Geylani
Author-X-Name-First: Pinar Celikkol
Author-X-Name-Last: Geylani
Author-Name: Spiro Stefanou
Author-X-Name-First: Spiro
Author-X-Name-Last: Stefanou
Title: Productivity growth patterns in US dairy products manufacturing plants
Abstract:
We analyse the productivity growth patterns in the US dairy products
industry using the Census Bureau's plant-level data set. We decompose
Total Factor Productivity (TFP) growth into the scale and technical change
components and analyse variability of plants' productivity by constructing
transition matrices. We observe a cross-sectional dispersion in
plant-level productivity growth in the industry. Even though the industry
aggregate shows a small TFP growth rate -0.3%, quartile rank analysis
shows that while the lowest productivity quartile plants average 1.9% loss
in productivity, the highest productivity quartile plants average 1.1%
growth annually. Our results show considerable movements of plants in
their productivity rank categories overall and across age groups, and we
find that the scale effect contribution to TFP growth accounts for about
90% of TFP growth on average in the industry. These plants extract scale
efficiencies over technological progress to fuel TFP growth. The youngest
plants start with the lowest productivity growth at the initial time
period, but they catch up older plants productivity, which present the
highest average growth rate through years. This may indicate a
'learning-by-doing' process for the industry.
Journal: Applied Economics
Pages: 3415-3432
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636326
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636326
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3415-3432
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Ferruz
Author-X-Name-First: Luis
Author-X-Name-Last: Ferruz
Author-Name: Fernando Munoz
Author-X-Name-First: Fernando
Author-X-Name-Last: Munoz
Author-Name: Maria Vargas
Author-X-Name-First: Maria
Author-X-Name-Last: Vargas
Title: Are traditional timing models well specified?
Abstract:
Traditional timing models are affected by several biases, which generate
spurious timing and stock-picking coefficients. Academics have appointed
different causes as the possible sources of these biases. A negative
correlation between timing and stock-picking abilities arises as a
consequence of the biases in traditional timing models. This article
provides evidence for one bias commonly found in traditional timing
models, which is related with options. We focus on this bias in view of
the scant attention it has so far received in the literature. We believe
one possible cause for this bias is the failure to include the cost of the
option implicit in timing activities in the timing models, and on this
basis, we opt for a corrected version of the Merton and Henriksson model
(1981). This study therefore is a pioneer in the assessment of the
magnitude of this bias and in the measurement of the impact of its
correction on fund managers' results. Our results confirm both the
existence of the bias and the correction of the problem when the cost of
the option is included in timing models. The modified version of the
Merton and Henriksson model, unlike the traditional model, reports
positive timing and stock-picking coefficients, supporting the good
performance by managers.
Journal: Applied Economics
Pages: 3433-3440
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003636334
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003636334
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3433-3440
Template-Type: ReDIF-Article 1.0
Author-Name: Sanjiv Jaggia
Author-X-Name-First: Sanjiv
Author-X-Name-Last: Jaggia
Title: Identifiability of the misspecified split hazard models
Abstract:
Unlike standard models, a split population hazard model allows the exit
probability to be less than one. Although conceptually attractive, split
models are prone to identification problems. In the reduced form
estimation of the hazard function, the influence of split may not be
distinguishable from that of neglected heterogeneity. For illustration, I
use Monte Carlo simulations to highlight the problem of interpreting the
structural parameters of the split Weibull and the Weibull-gamma models.
Journal: Applied Economics
Pages: 3441-3447
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003652422
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003652422
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3441-3447
Template-Type: ReDIF-Article 1.0
Author-Name: Sankar Mukhopadhyay
Author-X-Name-First: Sankar
Author-X-Name-Last: Mukhopadhyay
Author-Name: Jeanne Wendel
Author-X-Name-First: Jeanne
Author-X-Name-Last: Wendel
Title: Is post-smoking-cessation weight-gain a significant trigger for relapse?
Abstract:
While the Surgeon General's Consumer Guide lists weight-gain as an
important relapse trigger, the 2001 Surgeon General's Report on Women and
Smoking concludes, paradoxically, that actual weight-gain during cessation
does not appear to predict relapse. This dichotomous view reflects
longstanding scientific uncertainty about the role of weight-gain in
triggering relapse. This scientific uncertainty, which stems from mixed
clinical trial results, is problematic for insurance coverage decisions
such as state Medicaid programme decisions to cover or exclude
smoking-cessation and weight-control pharmaceuticals. Analysts hypothesize
that selection bias may explain the inconsistency between the negative
clinical results and the persistent view that weight-gain triggers
relapse, if weight-concern is both a key determinant of the transition
from 'smoker' to 'ex-smoker,' and a key moderating variable in the
relationship between weight-gain and relapse. We therefore use the
nationally representative 1997 National Longitudinal Survey of Youth
(NLSY97) to test the relapse-trigger hypothesis, and conclude that
post-smoking-cessation weight-gain triggers relapse among weight-concerned
white women, but it is associated with quitting success among Hispanic
women. In addition, our results do not support the hypothesis that the
mixed clinical trial results reflect selection bias based on
weight-concern.
Journal: Applied Economics
Pages: 3449-3457
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003652430
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003652430
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3449-3457
Template-Type: ReDIF-Article 1.0
Author-Name: Girma Kassie
Author-X-Name-First: Girma
Author-X-Name-Last: Kassie
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Author-Name: Clemens Wollny
Author-X-Name-First: Clemens
Author-X-Name-Last: Wollny
Title: Heteroscedastic hedonic price model for cattle in the rural markets of central Ethiopia
Abstract:
This study employs a heteroscedastic hedonic price model to examine the
factors that influence cattle prices in the rural markets of central
Ethiopia. The empirical results show that season, market location, class
of cattle, body size and age are very important determinants of the cattle
price. The relative weight of the phenotypic characteristics of the
animals is among the highest of all the factors considered. These
preferences at the farmers' and farmer traders' levels are the ones that
matter most in shaping the diversity of animals kept at farm level, and
the diversity of cattle genetic resources is quite essential for
generating or identifying the best suited breeds of cattle, given the
livelihood objectives of the target community.
Journal: Applied Economics
Pages: 3459-3464
Issue: 24
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670614
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670614
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Handle: RePEc:taf:applec:v:43:y:2011:i:24:p:3459-3464
Template-Type: ReDIF-Article 1.0
Author-Name: Ulf Rinne
Author-X-Name-First: Ulf
Author-X-Name-Last: Rinne
Author-Name: Marc Schneider
Author-X-Name-First: Marc
Author-X-Name-Last: Schneider
Author-Name: Arne Uhlendorff
Author-X-Name-First: Arne
Author-X-Name-Last: Uhlendorff
Title: Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany
Abstract:
This study analyses the treatment effects of public training programmes
for the unemployed in Germany. Based on propensity score matching methods,
we extend the picture that has been sketched in previous studies by
estimating the treatment effects of medium-term programmes for different
skill and age groups. Our results indicate that programme participation
has a positive impact on employment probabilities and earnings for almost
all sub-groups. We find little evidence for the presence of heterogeneous
treatment effects, and the magnitude of the differences is quite small.
Our results thus - at least in part - conflict with the strategy to
provide training increasingly to individuals with better employment
prospects.
Journal: Applied Economics
Pages: 3465-3494
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670697
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670697
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3465-3494
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Ayala
Author-X-Name-First: Luis
Author-X-Name-Last: Ayala
Author-Name: Carolina Navarro
Author-X-Name-First: Carolina
Author-X-Name-Last: Navarro
Author-Name: Mercedes Sastre
Author-X-Name-First: Mercedes
Author-X-Name-Last: Sastre
Title: Cross-country income mobility comparisons under panel attrition: the relevance of weighting schemes
Abstract:
This article aims to present an assessment of the effects of panel
attrition on income mobility comparisons for some EU countries by using
the European Community Household Panel (ECHP). There are different
possibilities of correcting the attrition problem by means of alternative
longitudinal weighting schemes. The sensitivity of mobility estimates to
these attrition correction procedures is tested in this article. Our
results show that ECHP attrition is characterized by a certain degree of
selectivity but only affecting some variables and countries. Different
probability models corroborate the existence of a certain nonrandom
attrition. The model chosen to construct the longitudinal weights to
correct attrition offers up rather different results than those obtained
when Eurostat's longitudinal weights are used. Although attrition does not
seem to have a great effect on aggregated mobility indicators, it does
have a decisive effect on decomposition exercises. Our tests reveal
certain sensitivity of income mobility measures to the weighting system
used.
Journal: Applied Economics
Pages: 3495-3521
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670705
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670705
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3495-3521
Template-Type: ReDIF-Article 1.0
Author-Name: Ryan Compton
Author-X-Name-First: Ryan
Author-X-Name-Last: Compton
Author-Name: Daniel Giedeman
Author-X-Name-First: Daniel
Author-X-Name-Last: Giedeman
Title: Panel evidence on finance, institutions and economic growth
Abstract:
This article investigates whether the level of institutional development
affects the link between financial development and economic growth. Using
a range of cross-sectional and panel approaches we find that the positive
effect of banking development on growth is reduced as the level of
institutions (e.g. rule of law, lack of corruption) increases. We do not,
however, find a similar result when we examine the joint effect of
institutional level and stock market development on economic growth. We
attribute these results to the ability of banks to perform functions
similar to those provided by well-operating institutions, whereas stock
markets do not perform such comparable functions.
Journal: Applied Economics
Pages: 3523-3547
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670713
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670713
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3523-3547
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Devicienti
Author-X-Name-First: Francesco
Author-X-Name-Last: Devicienti
Author-Name: Ambra Poggi
Author-X-Name-First: Ambra
Author-X-Name-Last: Poggi
Title: Poverty and social exclusion: two sides of the same coin or dynamically interrelated processes?
Abstract:
There is growing interest in the analysis and measurement of social
exclusion, to complement the static and dynamic literature on income
poverty. On theoretical grounds, social exclusion and income poverty are
seen as different processes, but with closely interrelated dynamics.
However, our empirical understanding of the way these two processes
dynamically interact at the individual level is still very limited. To
shed some light on the issue, we use a dynamic bivariate probit model,
controlling for unobserved heterogeneity and Wooldridge (2005)-type
initial conditions. Both the first- and second-order Markov dynamics are
examined. We estimate the model using the Italian sample of the European
Community Household Panel (ECHP), waves 1-8, and find a sizable extent of
state dependence in both poverty and social exclusion. Moreover, there are
dynamic cross-effects implying that poverty and social exclusion are
mutually reinforcing. Social policies aimed at eradicating poverty and
avoiding individuals' social and economic marginalization should take
these interaction effects explicitly into account.
Journal: Applied Economics
Pages: 3549-3571
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670721
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670721
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3549-3571
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Bafumi
Author-X-Name-First: Joseph
Author-X-Name-Last: Bafumi
Title: Animal spirits: the effect of economic expectations on economic output
Abstract:
The public is characterized as able forecasters of future economic
performance. They engage in rational expectations. Empirical evidence
exists to bolster the claim. This article considers the possibility that
the public does more than predict economic output. They may engage in a
self-fulfilling prophecy where belief about the future economy translates
into personal financial behaviour (e.g., consumption and investment) that
actually drives economic performance. After controlling for rational
expectations with elite forecasts, leading indicators and past economic
performance, it is shown that between 5% and one-third of the variance in
economic output can be explained by prospective economic sentiment. This
result has broad implications for electoral behaviour research.
Journal: Applied Economics
Pages: 3573-3589
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670739
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670739
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3573-3589
Template-Type: ReDIF-Article 1.0
Author-Name: Ofer Azar
Author-X-Name-First: Ofer
Author-X-Name-Last: Azar
Author-Name: Michael Bar-Eli
Author-X-Name-First: Michael
Author-X-Name-Last: Bar-Eli
Title: Do soccer players play the mixed-strategy Nash equilibrium?
Abstract:
Mixed-Strategy Nash Equilibrium (MSNE) is a commonly used solution
concept in game-theoretic models in various fields in economics,
management and other disciplines, but the experimental results whether the
MSNE predicts well actual play in games is mixed. Consequently, the
evidence for naturally occurring games in which the MSNE predicts the
outcome well is of great importance, as it can justify the vast use of
MSNE in models. The game between the kicker and the goalkeeper in soccer
penalty kicks is a real-world game that can be used to examine the
application of the MSNE concept or its accuracy, because payoffs are a
common knowledge, the players have huge incentives to play correctly, the
game is simple enough to analyse, its Nash equilibrium is in mixed
strategies, and players' actions can be observed. We collected and
analysed the data on the direction of kicks and jumps in penalty kicks in
various top leagues and tournaments. Our analysis suggests that the MSNE
predictions are the closest to the actual sample data, even though some
other prediction methods use information on the marginal distribution of
kicks or jumps, whereas the MSNE does not.
Journal: Applied Economics
Pages: 3591-3601
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670747
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670747
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3591-3601
Template-Type: ReDIF-Article 1.0
Author-Name: Katsushi Imai
Author-X-Name-First: Katsushi
Author-X-Name-Last: Imai
Author-Name: Raghav Gaiha
Author-X-Name-First: Raghav
Author-X-Name-Last: Gaiha
Author-Name: Woojin Kang
Author-X-Name-First: Woojin
Author-X-Name-Last: Kang
Title: Vulnerability and poverty dynamics in Vietnam
Abstract:
Drawing upon the Vietnam Household Living Standards Survey (VHLSS) data
that cover the whole of Vietnam in 2002 and 2004, ex ante measures of
vulnerability are constructed. These are then compared with static
indicators of poverty (i.e. the headcount ratio in a particular year).
Detailed analyses of the panel data show that (i) in general,
vulnerability in 2002 translates into poverty in 2004; (ii) vulnerability
of the poor tends to perpetuate their poverty and (iii) sections of the
nonpoor but vulnerable slip into poverty. Durable reduction in poverty is
conditional on (i) accurate identification of the vulnerable, (ii) their
sources of vulnerability and (iii) design of social safety nets that would
enable the vulnerable to reduce risks and cope better with rapid
integration of markets with the larger global economy.
Journal: Applied Economics
Pages: 3603-3618
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670754
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670754
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3603-3618
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Aleem
Author-X-Name-First: Abdul
Author-X-Name-Last: Aleem
Author-Name: Amine Lahiani
Author-X-Name-First: Amine
Author-X-Name-Last: Lahiani
Title: Estimation and evaluation of core inflation measures
Abstract:
This article estimates and evaluates different measures of core inflation
for India by employing statistical and econometric approaches. We estimate
Wholesale Price Index (WPI) ex-food, WPI ex-food and energy, 20%
asymmetric trimmed mean, 63rd percentile and Structural Vector
Autoregression (SVAR) measures of core inflation. The trimmed mean, 63rd
percentile and SVAR measures are unbiased, less volatile and highly
correlated to headline inflation. The predictive accuracy of the different
core inflation measures used in this article is assessed. The overall
result suggests that a 20% asymmetric trimmed mean and SVAR measures of
core inflation can be useful for the policy purposes.
Journal: Applied Economics
Pages: 3619-3629
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670770
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670770
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3619-3629
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Is health care really a luxury in OECD countries? Evidence from alternative price deflators
Abstract:
This article examines whether real Health-care Expenditure (HE) is a
luxury or necessity for Organization for Economic Co-operation and
Development (OECD) countries over the period 1972 to 2004 within a panel
unit root and panel cointegration framework. To realize this objective, we
regress HE on real Gross Domestic Product (GDP), the proportion of the
population aged over 65 (P65) and a time trend (T). We first present
results for 18 countries where real HE per capita is obtained using a
general GDP deflator. For these countries, we find that health care is a
luxury for just one country. Next, we present results for eight countries
where real HE is obtained using a specific health-care price index. When
the general GDP deflator is replaced with a specific health-care price
index, at least one of the GDP, P65 or T coefficients for the eight
countries changes in a reasonably dramatic fashion, suggesting that the
use of the GDP deflator introduces bias into the regression. We find that
HE is a necessity in all eight countries. Given that the reliability of
the GDP deflator results is questionable, on the basis of the results for
the eight countries, we conclude that HE is a necessity.
Journal: Applied Economics
Pages: 3631-3643
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670788
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670788
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3631-3643
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Morrisey
Author-X-Name-First: Michael
Author-X-Name-Last: Morrisey
Author-Name: David Grabowski
Author-X-Name-First: David
Author-X-Name-Last: Grabowski
Title: Gas prices, beer taxes and GDL programmes: effects on auto fatalities among young adults in the US
Abstract:
Efforts to reduce teenage driving fatalities can be categorized as:
enhancing driving skills, constraining driving behaviour and limiting the
exposure of young drivers to the road. This article uses state-year
specific Fatality Analysis Reporting System (FARS) data on the motor
vehicle fatalities of young adults aged 15-24 to estimate the effects of
gasoline prices, beer taxes and the enactment of Graduated Drivers License
(GDL) programmes over the 1985-2006 period. Results indicate that a 10%
increase in gasoline prices reduce fatalities by 3.2-6.2%. The largest
percentage reductions occurred among 15- to 17-year-old drivers. 10%
higher beer taxes were estimated to reduce motor vehicle fatalities among
young drivers by approximately 1.3%. In this case, there was virtually no
effect on 15- to 17-year-old drivers. Finally, the introduction of more
restrictive GDL programmes, those with a 6-month learner's permit phase
and subsequent limits on early nighttime driving or on the number of
passengers, reduced fatalities among 15- to 17-year-old drivers by 24%.
The effects on 18- to 21-year-old drivers were smaller and the weakest GDL
programmes had no effect on fatalities.
Journal: Applied Economics
Pages: 3645-3654
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670796
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670796
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3645-3654
Template-Type: ReDIF-Article 1.0
Author-Name: Hashem Dezhbakhsh
Author-X-Name-First: Hashem
Author-X-Name-Last: Dezhbakhsh
Author-Name: Paul Rubin
Author-X-Name-First: Paul
Author-X-Name-Last: Rubin
Title: From the 'econometrics of capital punishment' to the 'capital punishment' of econometrics: on the use and abuse of sensitivity analysis
Abstract:
The academic debate over the deterrent effect of capital punishment has
intensified again with a major policy outcome at stake. About two dozen
empirical studies have recently emerged that explore the issue. Donohue
and Wolfers (2005) claim to have examined the recent studies and shown the
evidence not to be robust to specification changes. We argue that the
narrow scope of their study does not warrant this claim. Moreover,
focusing on our two studies that they have examined, we show the
deterrence findings to be robust, while their work has serious flaws and
their reporting appears to be selective. The selectivity is biased towards
showing 'no deterrence'.
Journal: Applied Economics
Pages: 3655-3670
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003670804
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003670804
File-Format: text/html
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3655-3670
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Podrecca
Author-X-Name-First: Elena
Author-X-Name-Last: Podrecca
Title: Labour market institutions and wage setting: evidence for OECD countries
Abstract:
The main channel through which labour market institutions are supposed to
work in affecting unemployment is through their effects on the key
parameters of the wage curve. In particular, labour market institutions
may have both a direct wage push (or level) effect, i.e. change the level
of the real wage for any given level of the unemployment rate and
productivity, and an indirect slope effect, i.e. change the responsiveness
of the real wage to the unemployment rate. The question this article
addresses is whether there is any evidence that these transmission
mechanisms were at work in a group of 20 Organization for Economic
Co-operation and Development (OECD) countries over the period 1960 to
1999. The analysis is accomplished in two steps. Pooled Mean Group (PMG)
estimates of a wage equation including unemployment, productivity and a
set of wage push institutions are first obtained, allowing only a subset
of institutional coefficient to be homogeneous, while leaving the
unemployment and other coefficients free to differ across countries. The
country specific estimates of the unemployment coefficients are then used
to investigate whether and to what extent cross-country heterogeneity in
the estimated wage response to unemployment is related to institutional
differences. The results support the existence of significant wage push
effects of union density and benefit replacement rates, and of significant
slope effects of benefit replacement rates, benefit duration and
employment protection. A more generous unemployment benefit structure is
found to lower the wage responsiveness to unemployment, while higher
employment protection, contrary to what one expects, is found to enhance
it. No significant level and slope effects are found for the tax wedge and
bargaining coordination.
Journal: Applied Economics
Pages: 3671-3686
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003689721
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689721
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3671-3686
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Brown
Author-X-Name-First: Christopher
Author-X-Name-Last: Brown
Author-Name: Kam Chan
Author-X-Name-First: Kam
Author-X-Name-Last: Chan
Author-Name: Carl Chen
Author-X-Name-First: Carl
Author-X-Name-Last: Chen
Title: First-author conditions: evidence from finance journal coauthorship
Abstract:
We study the trend and the author name-ordering rule in finance
publication using the publication records of 21 core finance journals
during the period from 1990 to 2004. We empirically model the underlying
factors that affect the alphabetical ordering rule among multi-authored
finance articles. We find that the choice of alphabetical ordering is
based on the quality of the article, institutional heterogeneity, team
size and cultural factors. The central argument rests upon the need to
signal and the importance of signalling within the context of bargaining
behaviour among coauthors. The probability of choosing alphabetical name
ordering rule is associated with high article quality, higher ranked
institutions, smaller research team and the presence of European authors.
Journal: Applied Economics
Pages: 3687-3697
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003689739
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689739
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3687-3697
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Artur Tamazian
Author-X-Name-First: Artur
Author-X-Name-Last: Tamazian
Title: A simultaneous equations model of finance and growth: FIML estimates for India
Abstract:
In the relationship between economic growth and financial development, it
is generally conceded that both variables are likely to be interdependent.
However, no attempt has been made so far to estimate a simultaneous
equations model to test whether finance causes growth or vice versa. This
article uses the Full Information Maximum Likelihood (FIML) method to
estimate a two equations model of growth and finance for India to
determine the strength of this interdependence. Our results show that
Financial Developments (FD) have a small but significant permanent growth
effect. However, there is no evidence to support the view that 'where
enterprise leads, finance follows'.
Journal: Applied Economics
Pages: 3699-3708
Issue: 25
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003689747
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689747
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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3699-3708
Template-Type: ReDIF-Article 1.0
Author-Name: J. K. Ashton
Author-X-Name-First: J. K.
Author-X-Name-Last: Ashton
Author-Name: B. Gerrard
Author-X-Name-First: B.
Author-X-Name-Last: Gerrard
Author-Name: R. Hudson
Author-X-Name-First: R.
Author-X-Name-Last: Hudson
Title: Do national soccer results really impact on the stock market?
Abstract:
This study is a response to Klein et al. (2008), which was highly
critical of earlier work by Ashton et al. (2003). This work
considering the link between international soccer results and stock market
returns was challenged by Klein et al. (2008), who reject the
presence and importance of this link. In response, this work provides a
reassessment of the link between international soccer results and stock
market returns within Ashton et al. (2003). This new analysis extends
the original work by using a larger dataset, employing an extended range
of tests and allowing for outliers. It is reported that, contrary to the
findings of Klein et al. (2008), the link between international
soccer results and stock market prices does indeed exist particularly
within the sample period 1984-2002 used by Ashton et al. (2003).
After extending the dataset to include observations from 2002 until 2009,
it is reported that the effect on stock market returns has declined in
importance over this period, particularly the impact of wins.
Journal: Applied Economics
Pages: 3709-3717
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003689762
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003689762
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3709-3717
Template-Type: ReDIF-Article 1.0
Author-Name: Abdullahi Ahmed
Author-X-Name-First: Abdullahi
Author-X-Name-Last: Ahmed
Author-Name: Enjiang Cheng
Author-X-Name-First: Enjiang
Author-X-Name-Last: Cheng
Author-Name: George Messinis
Author-X-Name-First: George
Author-X-Name-Last: Messinis
Title: The role of exports, FDI and imports in development: evidence from Sub-Saharan African countries
Abstract:
The disappointing economic performance of Sub-Saharan African (SSA)
economies in the late 1980s prompted reforms in foreign trade and Foreign
Direct Investment (FDI) in the early 1990s. Using the Autoregressive
Distributed Lag (ARDL) approach and Pedroni panel estimation procedures
that allow for heterogeneity, this study found that exports and FDI have a
significant impact on economic growth. Granger-type causality tests show
the interrelatedness of exports, FDI, imports and income variables. The
results also provide evidence of a two-stage causal chain of exports,
imports and income. This article calls for more market-oriented policy
reforms in SSA countries.
Journal: Applied Economics
Pages: 3719-3731
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003705303
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003705303
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3719-3731
Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui
Author-X-Name-First: Kenji
Author-X-Name-Last: Matsui
Title: Accounting year-end dispersion and seasonality in the Japanese corporate bond market
Abstract:
Using monthly yield data on straight bonds, this article investigates
seasonality in the Japanese corporate bond market. A statistical
examination of spreads between the yield of each bond and a bond market
index reveals that the yield spread consistently decreases from April to
August, whereas it increases from September to December. Because
accounting year-ends for most investors in Japan are concentrated in
either March or December, this seasonality supports the hypotheses of
tax-loss selling and window dressing. Moreover, the seasonality becomes
more pronounced as the debt rating declines, consistent with the findings
in previous studies investigating the US bond market.
Journal: Applied Economics
Pages: 3733-3744
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003705311
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003705311
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3733-3744
Template-Type: ReDIF-Article 1.0
Author-Name: D. Miljkovic
Author-X-Name-First: D.
Author-X-Name-Last: Miljkovic
Author-Name: R. Zhuang
Author-X-Name-First: R.
Author-X-Name-Last: Zhuang
Title: The exchange rate pass-through into import prices: the case of Japanese meat imports
Abstract:
Japan is a traditional net importer of food products in general and meat
products in particular. Japanese meat imports come from a few countries
thus making Japan potentially very sensitive to the swings in one or a few
bilateral exchange rates. One of the key contributions of this article is
the use of commodity (meats in this case) imports weighted exchange rates
in the analysis. The standard practice in previous international
agricultural trade studies related to either exchange rate pass-through or
pricing to market was to use the aggregate trade weighted exchange rates
usually provided by the Central Bank authorities or sources. Beef and
poultry import prices indicate partial exchange rate pass-through while
import prices of pork indicate zero exchange rate pass-through, primarily
due to gate price policy system applied to pork imports. In terms of
competitiveness, these results suggest relatively more competitive markets
among poultry importing firms, somewhat competitive markets among beef
importing firms, while competitiveness of pork importing firms could not
be assessed due to existing import policies.
Journal: Applied Economics
Pages: 3745-3754
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003705329
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003705329
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3745-3754
Template-Type: ReDIF-Article 1.0
Author-Name: Heiko Hansen
Author-X-Name-First: Heiko
Author-X-Name-Last: Hansen
Author-Name: Ramona Teuber
Author-X-Name-First: Ramona
Author-X-Name-Last: Teuber
Title: Assessing the impacts of EU's common agricultural policy on regional convergence: sub-national evidence from Germany
Abstract:
This article assesses the relationship between transfers arising from
EU's Common Agricultural Policy (CAP) and convergence in both farmers'
revenues and interpersonal income redistribution using a sample of 26
regions in the state of Hesse, Germany, over the period 1979 to 2004 and
1991 to 2004, respectively. We thereby combine the concept of sigma
convergence with Shorrock's inequality decomposition in order to determine
the driving forces in distributional dynamics of farmers' revenues.
Additionally, we apply alternative methodologies to investigate how per
capita incomes have evolved over time. Explicitly comparing the situations
with and without transfers, our results indicate that the CAP tends to
smooth differences in farmers' revenues across regions, but does not
impede a strong divergence through time. The latter is mainly driven by
increasing structural differences between the regions, while disparities
in intensity turn out to be less important. The empirical analysis also
shows that CAP transfers reduce income inequality within society as a
whole. However, this impact proved to be negligible in explaining
distributional dynamics and growth of per capita incomes.
Journal: Applied Economics
Pages: 3755-3765
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724395
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724395
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3755-3765
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Dickey
Author-X-Name-First: Heather
Author-X-Name-Last: Dickey
Author-Name: Verity Watson
Author-X-Name-First: Verity
Author-X-Name-Last: Watson
Author-Name: Alexandros Zangelidis
Author-X-Name-First: Alexandros
Author-X-Name-Last: Zangelidis
Title: Is it all about money? An examination of the motives behind moonlighting
Abstract:
Multiple-job holding is an important labour market phenomenon. In this
article, we examine individuals' motives for multiple-job holding.
Specifically, we estimate an empirical model of the motivation for
moonlighting assuming that individuals hold a second job for either
financial or for nonpecuniary motives. Our results contribute to a better
understanding of multiple-job holding. We find that multiple-job holding
is used by individuals as a way to deal with the financial difficulties or
the increased financial commitments in their household. Individuals are
more likely to moonlight for money in the early stages of their adult
life. Finally, individuals with more labour market experience are more
likely to moonlight for pecuniary than nonpecuniary reasons.
Journal: Applied Economics
Pages: 3767-3774
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724403
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724403
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3767-3774
Template-Type: ReDIF-Article 1.0
Author-Name: Stefanie Haller
Author-X-Name-First: Stefanie
Author-X-Name-Last: Haller
Author-Name: Iulia Siedschlag
Author-X-Name-First: Iulia
Author-X-Name-Last: Siedschlag
Title: Determinants of ICT adoption: evidence from firm-level data
Abstract:
We analyse factors driving inter- and intra-firm diffusion of Information
and Communication Technologies (ICT) using data from Irish manufacturing
firms over the period 2001 to 2004. We find that the path of ICT diffusion
has been uneven across firms, industries and space, which is consistent
with the theory of new technology adoption. Our results suggest that firms
that are larger, younger, fast growing, skill-intensive, export-intensive
and firms located in the capital city region have been relatively more
successful in adopting and using ICT. We find positive technology
spillovers from firms that have adopted ICT located in the same industry
and region.
Journal: Applied Economics
Pages: 3775-3788
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724411
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724411
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3775-3788
Template-Type: ReDIF-Article 1.0
Author-Name: Olga Isengildina-Massa
Author-X-Name-First: Olga
Author-X-Name-Last: Isengildina-Massa
Author-Name: Scott Irwin
Author-X-Name-First: Scott
Author-X-Name-Last: Irwin
Author-Name: Darrel Good
Author-X-Name-First: Darrel
Author-X-Name-Last: Good
Author-Name: Luca Massa
Author-X-Name-First: Luca
Author-X-Name-Last: Massa
Title: Empirical confidence intervals for USDA commodity price forecasts
Abstract:
Conventional procedures for calculating confidence limits of forecasts
generated by statistical models provide little guidance for forecasts
based on a combination or a consensus process rather than formal models,
as is the case with US Department of Agriculture (USDA) forecasts. This
study applied and compared several procedures for calculating empirical
confidence intervals for USDA forecasts of corn, soybean and wheat prices
over the 1980/81 through 2006/07 marketing years. Alternative procedures
were compared based on out-of-sample performance over 1995/96 through
2006/07. The results of this study demonstrate that kernel density,
quantile distribution and best fitting parametric distribution (logistic)
methods provided confidence intervals calibrated at the 80% level prior to
harvest and 90% level after harvest. The kernel density-based method
appears most accurate both before and after harvest with the final value
falling inside the forecast interval 77% of the time before harvest and
92% after harvest, followed by quantile regression (73% and 91% before and
after harvest, respectively) logistic distribution (73% and 90% before and
after harvest, respectively) and histogram (66% and 84% before and after
harvest, respectively). Overall, this study demonstrates that empirical
approaches may be used to construct more accurate confidence intervals for
USDA corn, soybean and wheat price forecasts.
Journal: Applied Economics
Pages: 3789-3803
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724429
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724429
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3789-3803
Template-Type: ReDIF-Article 1.0
Author-Name: Kelvin Balcombe
Author-X-Name-First: Kelvin
Author-X-Name-Last: Balcombe
Author-Name: Iain Fraser
Author-X-Name-First: Iain
Author-X-Name-Last: Fraser
Author-Name: Abhijit Sharma
Author-X-Name-First: Abhijit
Author-X-Name-Last: Sharma
Title: Bayesian model averaging and identification of structural breaks in time series
Abstract:
Bayesian Model Averaging (BMA) is used for testing for multiple break
points in univariate series using conjugate normal-gamma priors. This
approach can test for the number of structural breaks and produce
posterior probabilities for a break at each point in time. Results are
averaged over specifications including: stationary; stationary around
trend and unit root models, each containing different types and number of
breaks and different lag lengths. The procedures are used to test for
structural breaks on 14 annual macroeconomic series and 11 natural
resource price series. The results indicate that there are structural
breaks in all of the natural resource series and most of the macroeconomic
series. Many of the series had multiple breaks. Our findings regarding the
existence of unit roots, having allowed for structural breaks in the data,
are largely consistent with previous work.
Journal: Applied Economics
Pages: 3805-3818
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724445
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3805-3818
Template-Type: ReDIF-Article 1.0
Author-Name: Monojit Chatterji
Author-X-Name-First: Monojit
Author-X-Name-Last: Chatterji
Author-Name: Karen Mumford
Author-X-Name-First: Karen
Author-X-Name-Last: Mumford
Author-Name: Peter Smith
Author-X-Name-First: Peter
Author-X-Name-Last: Smith
Title: The public-private sector gender wage differential in Britain: evidence from matched employee-workplace data
Abstract:
This article shows that little of the gender earnings gap in the public
and private sectors in Britain are explained by differences in employee
characteristics. The differences in workplace characteristics, however,
make a significant, sizeable contribution. It is shown that performance
related pay and company pension schemes are associated with higher
relative earnings in the private sector, whilst increased provision of
family-friendly employment practices in the public sector is associated
with higher relative earnings for women.
Journal: Applied Economics
Pages: 3819-3833
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724452
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724452
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3819-3833
Template-Type: ReDIF-Article 1.0
Author-Name: Yosef Bonaparte
Author-X-Name-First: Yosef
Author-X-Name-Last: Bonaparte
Author-Name: Frank Fabozzi
Author-X-Name-First: Frank
Author-X-Name-Last: Fabozzi
Title: Household search choice: theory and evidence
Abstract:
Since the work by Stigler (1961) on the economics of information in the
early 1960s, economists have paid closer attention to the role of search
for information. However, search methods are not considered in the theory
of portfolio choice. We present a model of investor search behaviour in
order to provide a framework by which to evaluate our empirical evidence
on the role of search in portfolio selection and performance. We study two
types of search methods: informal and professional. We show that the
income, wealth and risk preference of households influence their search
choice.
Journal: Applied Economics
Pages: 3835-3847
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724460
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724460
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3835-3847
Template-Type: ReDIF-Article 1.0
Author-Name: Almuhanad Melhim
Author-X-Name-First: Almuhanad
Author-X-Name-Last: Melhim
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: Enterprise diversification in US dairy: impact of risk preferences on scale and scope economies
Abstract:
Enterprise diversification has recently become a prominent feature of US
dairy farms. Scope economies and risk aversion are two forces that
simultaneously determine diversification. We jointly estimate scope
economies and determine risk preferences under price uncertainty. We
reject risk neutrality in favour of Increasing Absolute Risk Aversion
(IARA) and Increasing Relative Risk Aversion (IRRA). Scope economies are
significant, but diminish with farm size. Increasing returns to scale
exist in the production of multiple enterprises and diminish with size.
Large farms operate under decreasing returns to scale. Ignoring risk
preferences, a common practice in empirical work, results in an
underestimate of the effect of scope economies for large farms.
Journal: Applied Economics
Pages: 3849-3862
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724478
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724478
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3849-3862
Template-Type: ReDIF-Article 1.0
Author-Name: Samiran Banerjee
Author-X-Name-First: Samiran
Author-X-Name-Last: Banerjee
Author-Name: James Murphy
Author-X-Name-First: James
Author-X-Name-Last: Murphy
Title: Do rational demand functions differ from irrational ones? Evidence from an induced budget experiment
Abstract:
Various studies (e.g. Becker, 1962; Ariely et al., 2003) have noted
anomalies concerning the relationship between observed demand and the
preferences presumed to motivate it. We re-examine these findings using
experimental choice data. After separating our subjects' choices into
rational and irrational subsets based on consistency with the axioms of
revealed preference, we estimate and compare demand coefficients.
Mirroring Ariely et al.'s 'coherently arbitrary' choice, both
rational and irrational demand estimates exhibit negative price and
positive endowment coefficients. However, a comparison of the full set of
demand coefficients indicates significant differences between the two,
yielding an observable artefact of the preference hypothesis. Relaxing the
goodness-of-fit of the revealed preference test (Afriat, 1987; Varian,
1994) does not alter our findings.
Journal: Applied Economics
Pages: 3863-3882
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003724486
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003724486
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3863-3882
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Ford
Author-X-Name-First: Timothy
Author-X-Name-Last: Ford
Author-Name: Bruce Elmslie
Author-X-Name-First: Bruce
Author-X-Name-Last: Elmslie
Title: Scale effects found!
Abstract:
A key feature of early endogenous growth models is their prediction of
scale effects - the larger the economy, as measured by population, the
number of firms or employment, the faster the economy should grow.
However, empirical work has failed to support the existence of scale
effects. As a result, much human capital has been expended in order to
'fix' this problem by eliminating scale effects in endogenous growth
models. We contend that econometric techniques used in the empirical
search for scale effects are inconsistent with growth theory. Using data
from US states and an econometric technique that better matches growth
theory by allowing each economy to have its own steady state, we provide
empirical support for the existence of scale effects. Results call into
question the need to reformulate the first models of endogenous growth.
Journal: Applied Economics
Pages: 3883-3890
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742553
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742553
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3883-3890
Template-Type: ReDIF-Article 1.0
Author-Name: Ender Su
Author-X-Name-First: Ender
Author-X-Name-Last: Su
Author-Name: John Bilson
Author-X-Name-First: John
Author-X-Name-Last: Bilson
Title: Trading asymmetric trend and volatility by leverage trend GARCH in Taiwan stock index
Abstract:
This article develops a leverage trend Generalized Autoregressive
Conditional Heteroscedasticity (GARCH) model by incorporating asymmetric
trend of returns of the exponential autoregressive and asymmetric
volatility of GARCH models to study the asymmetric effects. Using
in-sample daily data of Taiex over the period 4 January 1980 to 25 August
1997 and postsample daily data over the period 26 August 1997 to 10
September 2007, the evidence reveals that a curvaceous risk-return
relationship and both asymmetric volatility and asymmetric trend of
returns are significant in Taiex. The episode of asymmetric trend of
returns is that the positive information creates a higher return trend
than the negative information of the same amount, while similarly to most
studies, the evidence of asymmetric volatility appears that the negative
information makes a higher volatility than the positive information of the
same size. Most remarkably, we evidence that the volatility asymmetry
effect is a conservative trading factor and the return trend asymmetry
effect is an active trading factor. In comparison of post-sample
performance using rolling-window technique, the leverage trend GARCH model
indeed outperforms the other three models with single asymmetry adjusted
or without asymmetry adjusted, while the asymmetry nonadjusted model
performs the worst. It implies that the return trend asymmetry (active
trading) and the volatility asymmetry effects (conservative trading) tend
to compensate, but not offset each other.
Journal: Applied Economics
Pages: 3891-3905
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742561
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742561
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3891-3905
Template-Type: ReDIF-Article 1.0
Author-Name: Dolores Jimenez Rubio
Author-X-Name-First: Dolores Jimenez
Author-X-Name-Last: Rubio
Title: The impact of decentralization of health services on health outcomes: evidence from Canada
Abstract:
This article contributes to the limited empirical literature on the
impact of decentralization on economic welfare by investigating the
hypothesis that shifts towards more fiscal decentralization in health
services would be accompanied by improvements in population health.
Building on a conventional public finance model applied to health care,
this hypothesis is tested on a panel data of the highly decentralized
Canadian provinces during the period 1979 to 1995. The results of the
exploratory empirical analysis presented in this article suggest that
fiscal decentralization of health services in Canada has had a positive
and substantial influence on the effectiveness of public policy in
improving a population's health over the period studied.
Journal: Applied Economics
Pages: 3907-3917
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742579
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742579
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3907-3917
Template-Type: ReDIF-Article 1.0
Author-Name: Mario Mazzocchi
Author-X-Name-First: Mario
Author-X-Name-Last: Mazzocchi
Author-Name: W. Bruce Traill
Author-X-Name-First: W. Bruce
Author-X-Name-Last: Traill
Title: Calories, obesity and health in OECD countries
Abstract:
Theoretical models suggest that decisions about diet, weight and health
status are endogenous within a utility maximization framework. In this
article, we model these behavioural relationships in a fixed-effect panel
setting using a simultaneous equation system, with a view to determining
whether economic variables can explain the trends in calorie consumption,
obesity and health in Organization for Economic Cooperation and
Development (OECD) countries and the large differences among the
countries. The empirical model shows that progress in medical treatment
and health expenditure mitigates mortality from diet-related diseases,
despite rising obesity rates. While the model accounts for endogeneity and
serial correlation, results are affected by data limitations.
Journal: Applied Economics
Pages: 3919-3929
Issue: 26
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742587
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742587
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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3919-3929
Template-Type: ReDIF-Article 1.0
Author-Name: Shandre Thangavelu
Author-X-Name-First: Shandre
Author-X-Name-Last: Thangavelu
Author-Name: Aekapol Chongvilaivan
Author-X-Name-First: Aekapol
Author-X-Name-Last: Chongvilaivan
Title: The impact of material and service outsourcing on employment in Thailand's manufacturing industries
Abstract:
With increasing emphasis on the importance of outsourcing, the 'fear of
job losses' has been of significant interest, not only in the developed
countries, but also in the developing countries. In this article, we
empirically investigate the impacts of intermediate inputs (material) and
services outsourcing on the relative demands for skilled and unskilled
labour in Thailand's manufacturing sectors from 1999 to 2003. Based on the
aggregation of establishment-level data at 4-digit industrial
classification, we find that both intermediate inputs and service
outsourcing are relatively skill-biased. Further, our results show that
intermediate inputs outsourcing has negative impacts on the relative
demands for skilled and unskilled workers, whereas service outsourcing
shifts the demand towards skilled workers at the expense of unskilled
workers.
Journal: Applied Economics
Pages: 3931-3944
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742595
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742595
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3931-3944
Template-Type: ReDIF-Article 1.0
Author-Name: John Bitzan
Author-X-Name-First: John
Author-X-Name-Last: Bitzan
Author-Name: Theodore Keeler
Author-X-Name-First: Theodore
Author-X-Name-Last: Keeler
Title: Intermodal traffic, regulatory change and carbon energy conservation in US freight transport
Abstract:
Conserving transport carbon emissions is an important policy goal.
Conventional wisdom often holds that conservation is best achieved by
increased regulation, and that such gains are best achieved in passenger
auto transport (fuel efficiency standards or diversion to transit). We
argue that the growth of rail freight has conserved carbon fuel use in the
United States, and that fuel-saving changes have been facilitated by
reduced regulation since 1980. Methods used include estimation of translog
cost functions (and related demand functions for fuel) for intermodal rail
and for truck, allowing controlled comparisons of modal fuel use. We find
intermodal rail (e.g. trailer on flatcar) to be a powerful conserver: if
intermodal rail were eliminated, and traffic transferred to
over-the-highway truck, extra annual carbon emissions would be nearly 25
Tg. By comparison, if urban passenger transit were eliminated and replaced
by autos (according to one study) the extra annual emissions would be only
3.9 Tg.
Journal: Applied Economics
Pages: 3945-3963
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742603
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742603
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3945-3963
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Brown
Author-X-Name-First: Richard
Author-X-Name-Last: Brown
Author-Name: Gareth Leeves
Author-X-Name-First: Gareth
Author-X-Name-Last: Leeves
Title: Comparative effects of migrants' remittances on composition of recipient household income in two small, island economies
Abstract:
We use unique household survey data from Fiji and Tonga to estimate and
compare the combined impact of migration and remittances on the
composition of household income. A two-step methodology is followed
employing a migration prediction model followed by the estimation of a
Three Stage Least Squares (3SLS) remittances and income equation system.
We find that remittances contribute to growth in productive capital and
entrepreneurial activity in the longer-established migrant economy, but
have yet to impact on business activity in the more recently
remittances-oriented economy, despite it having a more developed, market
economy. In the latter case, remittances seem more linked to supporting
consumption through supplementing low wage income. These findings suggest
that the duration and intensity of remittance-driven migration, and the
structure of economic activity within a community are important in
understanding the influences of migration and remittances on household
resource allocation and production decisions.
Journal: Applied Economics
Pages: 3965-3976
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742611
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742611
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3965-3976
Template-Type: ReDIF-Article 1.0
Author-Name: Nils Braakmann
Author-X-Name-First: Nils
Author-X-Name-Last: Braakmann
Author-Name: Joachim Wagner
Author-X-Name-First: Joachim
Author-X-Name-Last: Wagner
Title: Product diversification and stability of employment and sales: first evidence from German manufacturing firms
Abstract:
In this study, we use a unique rich newly built data set for German
manufacturing enterprises to investigate the relationship between product
diversification and the stability of sales and employment. We find that
contrary to portfolio theoretic considerations, more diversified firms
exhibit a higher variability of sales and employment. However, the effects
are negligibly small from an economics point of view.
Journal: Applied Economics
Pages: 3977-3985
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742629
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742629
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3977-3985
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Grisolia
Author-X-Name-First: Jose
Author-X-Name-Last: Grisolia
Author-Name: K. G. Willis
Author-X-Name-First: K. G.
Author-X-Name-Last: Willis
Title: An evening at the theatre: using choice experiments to model preferences for theatres and theatrical productions
Abstract:
This article examines people's preferences and demand for live theatre.
It investigates the preferences for people attending a regional theatre,
Northern Stage in Newcastle, in relation to other live theatres they could
attend, and in relation to the attributes of theatrical productions and
ticket price. It uses a Stated Preference (SP), discrete choice
experiment, to assess people's utility and Willingness To Pay (WTP) for
the different attributes of theatrical productions. The model assesses the
effect of the attributes of plays on choice; and the impact of
Socio-Economic (SE) and demographic variables on choice and demand.
Results reveal the heterogeneity of theatregoers' tastes for different
types of plays and ticket prices. The models reveal the significance of
'reviews' and 'Word Of Mouth' (WOM) opinions on plays, as the most
important variables determining choice.
Journal: Applied Economics
Pages: 3987-3998
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003742637
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003742637
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3987-3998
Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Ochsen
Author-X-Name-First: Carsten
Author-X-Name-Last: Ochsen
Author-Name: Heinz Welsch
Author-X-Name-First: Heinz
Author-X-Name-Last: Welsch
Title: The social costs of unemployment: accounting for unemployment duration
Abstract:
This article contributes to the literature on unemployment and well-being
by investigating the linkage between personal life satisfaction and a
macroeconomic indicator of the duration of unemployment. Using data for
more than 50 000 individuals in 10 European countries, 1992-2002, we find
that the social costs of unemployment, in terms of general unemployment's
impact on life satisfaction, relate significantly and to a considerable
extent to unemployment duration. It is thus not just the risk of becoming
or staying unemployed that people worry about, but especially the prospect
of staying long-term unemployed. This fear affects employed and unemployed
people alike. Our findings provide a strong point for focusing labour
market policies on long-term unemployment, in addition to considerations
of human capital depreciation.
Journal: Applied Economics
Pages: 3999-4005
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003761900
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003761900
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:3999-4005
Template-Type: ReDIF-Article 1.0
Author-Name: James Carroll
Author-X-Name-First: James
Author-X-Name-Last: Carroll
Author-Name: Carol Newman
Author-X-Name-First: Carol
Author-X-Name-Last: Newman
Author-Name: Fiona Thorne
Author-X-Name-First: Fiona
Author-X-Name-Last: Thorne
Title: A comparison of stochastic frontier approaches for estimating technical inefficiency and total factor productivity
Abstract:
This article compares standard stochastic frontier models for panel data
with a number of recently developed models which attempt to control for
unobserved heterogeneity in the inefficiency component. Results are used
to construct a generalized Malmquist Total Factor Productivity (TFP) index
for the Irish tillage sector. While our application yields similar general
TFP trends across models, it is evident that this new class of model leads
to fewer theoretical inconsistencies in the production frontier.
Furthermore, inefficiency estimates across models are critically compared
and the potential benefits of controlling for unobserved heterogeneity are
highlighted.
Journal: Applied Economics
Pages: 4007-4019
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003761918
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003761918
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4007-4019
Template-Type: ReDIF-Article 1.0
Author-Name: John Gibson
Author-X-Name-First: John
Author-X-Name-Last: Gibson
Author-Name: Scott Rozelle
Author-X-Name-First: Scott
Author-X-Name-Last: Rozelle
Title: The effects of price on household demand for food and calories in poor countries: are our databases giving reliable estimates?
Abstract:
Food price policy relies heavily on estimated price elasticities of food
demand to help balance the nutritional and economic objectives in poor
countries. Economists use either unit values (ratios of household
expenditure to quantity purchased) or community prices (enumerated from
vendors in local markets) as proxies for market prices when estimating
price elasticities with household survey data. Biases are believed to
result from using unit values, due to measurement error and quality
effects, but evidence on this issue is lacking and even less is known
about community prices. This article provides an empirical evidence from
Vietnam, which suggests that economists should exercise caution when
estimating price elasticities from household surveys. A 14-food demand
system is estimated alternatively with unit values or community prices,
and the elasticity of calories with respect to rice prices is calculated.
This elasticity is more than twice as large (-0.54 versus -0.22) when
community prices are used rather than unit values. Hence, conclusions
about the nutritional effects of rice price increases appear sensitive to
data choices made by economists. More generally, this discrepancy suggests
that the household survey databases commonly used by economists may not
provide reliable estimates.
Journal: Applied Economics
Pages: 4021-4031
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003781478
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003781478
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4021-4031
Template-Type: ReDIF-Article 1.0
Author-Name: George Ford
Author-X-Name-First: George
Author-X-Name-Last: Ford
Title: An investigation into the relationship of retail gas prices on oil company profitability
Abstract:
In this article, we present several empirical procedures using publicly
available data from the US Department of Energy (DOE), and the Securities
and Exchange Commission (SEC) to examine the relationship of oil company
gross profit margins to retail gas prices. This descriptive analysis
indicates that the profit margins of the major integrated oil companies
are lower, on average, during periods of extremely high gas and oil prices
(and, in fact, are even lower than in times of extremely low gas and oil
prices). Large oil companies are most profitable during periods of
moderate gasoline prices. Smaller, vertically integrated oil companies and
firms, primarily in the business of refining purchased crude oil, exhibit
a consistently inverse relationship between profit margins and retail gas
prices - as gas prices increase, these firms become less profitable. We
find no evidence for the increase in the gross profit margins of oil
companies during episodes of very high retail gasoline prices.
Journal: Applied Economics
Pages: 4033-4041
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003781486
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003781486
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4033-4041
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Baglioni
Author-X-Name-First: Angelo
Author-X-Name-Last: Baglioni
Title: Shareholders' agreements and voting power: evidence from Italian listed firms
Abstract:
This work provides an empirical investigation of shareholders' agreements
signed in Italy over the past decade. The evidence shows that agreements
produce a remarkable reshuffling of voting power (Shapley value) among
participants. In particular, the first owner gains much voting power at
low levels of ownership concentration, and his gain is decreasing in his
ownership stake; the opposite happens for the other participants. In
addition, the likelihood that a supermajority rule is included in an
agreement contract is increasing in the first owner's share of equity.
These findings are consistent with the hypothesis that agreements are used
to correct situations where the first owner's power is at one of the two
extremes: either too low (leading to insufficient monitoring over managers
and gridlocks in decision-making) or too high (enabling him to extract
large private benefits of control).
Journal: Applied Economics
Pages: 4043-4052
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003781494
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003781494
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4043-4052
Template-Type: ReDIF-Article 1.0
Author-Name: John Gibson
Author-X-Name-First: John
Author-X-Name-Last: Gibson
Author-Name: Susan Olivia
Author-X-Name-First: Susan
Author-X-Name-Last: Olivia
Author-Name: Scott Rozelle
Author-X-Name-First: Scott
Author-X-Name-Last: Rozelle
Title: How widespread are nonlinear crowding out effects? The response of private transfers to income in four developing countries
Abstract:
This article investigates the relationship between household income and
private transfers received in developing countries. If private transfers
are unresponsive to household income, there is less likelihood of
expansions in public social security crowding out private transfers. Most
literature finds that private transfers are unresponsive, but this may be
because responses have been obscured by the methods that ignore
nonlinearities. Threshold regression techniques find such nonlinearity in
the Philippines and scope for serious crowding out, with 30-80% of private
transfers potentially displaced for low-income households (Cox
et al., 2004). To see if these nonlinear effects occur more widely,
semiparametric and threshold regression methods are used to model private
transfers in four developing countries - China, Indonesia, Papua New
Guinea and Vietnam. The results reported in this article suggest that
nonlinear crowding out effects are not important features of transfer
behaviour in these countries. The transfer derivatives under a variety of
assumptions only range between 0 and -0.08.
Journal: Applied Economics
Pages: 4053-4068
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003800831
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003800831
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4053-4068
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Matallin-Saez
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Matallin-Saez
Title: On causality in the size-efficiency relationship: the effect of investor cash flows on the mutual fund industry
Abstract:
One of the perceived advantages in mutual fund management is the presence
of economies of scale resulting from fund size. This article analyses the
impact of mutual fund cash flows on the relation between size and
performance, demonstrating that performance determines asymmetric
variations in fund assets, particularly in mutual equity funds. Therefore,
the more efficient funds generate broad enough cash flow entry that
increases the relative size of the fund, leading to an implicit and
positive relation between size and performance. So, if the average size
over the period sample is used as a measure of size, such a relation would
be biased. When the initial size is used, this bias is avoided and, in
general, an insignificant relation is found between size and performance.
These results are controlled by mutual fund costs using gross returns to
estimate performance. The evidence is robust, and shows only weak evidence
of a negative relation between size and performance for the balanced funds
that is driven by a low positive relation between costs and size;
precisely, the contrary that is expected from the hypothesis of the
presence of economies of scale.
Journal: Applied Economics
Pages: 4069-4079
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003800849
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003800849
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4069-4079
Template-Type: ReDIF-Article 1.0
Author-Name: Jenifer Piesse
Author-X-Name-First: Jenifer
Author-X-Name-Last: Piesse
Author-Name: David Schimmelpfennig
Author-X-Name-First: David
Author-X-Name-Last: Schimmelpfennig
Author-Name: Colin Thirtle
Author-X-Name-First: Colin
Author-X-Name-Last: Thirtle
Title: An error correction model of induced innovation in UK agriculture
Abstract:
Cointegration techniques are applied to a model of induced innovation
based on the two-stage Constant Elasticity of Substitution (CES)
production function. This approach results in direct tests of the
inducement hypothesis, which are applied to agricultural data for the
United Kingdom from 1953 to 2000. The time series properties of the
variables are checked, cointegration is established and an Error
Correction Model (ECM) constructed, which attempts to separate factor
substitution from technological change. Finally, the ECM formulation is
subjected to causality tests, which show that the factor price ratio for
chemicals and land is Granger-prior to the factor-saving bias of
technological change. However, long-run relative prices are not causally
prior to the machinery/labour ratio. This results from perturbations in
the user cost of machinery, caused by oil price shocks. Thus, the Induced
Innovation Hypothesis (IIH) may explain long-run transformations like the
mechanical and fertilizer revolutions that dominated the twentieth
century, but not reflect short-run price volatility.
Journal: Applied Economics
Pages: 4081-4094
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036841003800856
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036841003800856
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4081-4094
Template-Type: ReDIF-Article 1.0
Author-Name: Zahoor Ul Haq
Author-X-Name-First: Zahoor Ul
Author-X-Name-Last: Haq
Author-Name: Karl Meilke
Author-X-Name-First: Karl
Author-X-Name-Last: Meilke
Title: Does the Linder effect hold for differentiated agri-food and beverage product trade?
Abstract:
Using a generalized gravity equation, this study tests for the Linder
effect in differentiated agri-food product trade, i.e. as the demand
structures of two countries become more similar, their trade intensity
increases. Two proxies of demand structure, the Balassa index and the
absolute value of the difference in per capita Gross Domestic Products
(GDPs) of trading partners, are used to capture the Linder effect. In
addition, two measures of bilateral trade, the Grubel and Lloyd (GL)
index, and the value of bilateral trade are used as the dependent
variable. This study investigates the role of the Linder effect in
explaining the trade of 37 differentiated agri-food and beverage products
categorized into eight product groups: cereals, fresh fish, frozen fish,
vegetables, fresh fruit, processed fruit, tea and coffee and alcoholic
beverages. The data covers trade across 52 developed and developing
countries from 1990 to 2000. The type of proxy used for the Linder effect
and the way in which bilateral trade is measured influence the outcome of
the statistical tests for the Linder effect. The Linder effect for
cereals, frozen fish, vegetables, processed fruits and tea and coffee,
using the value of trade as the dependent variable, is often accepted, but
it is generally rejected when the GL index is used as the measure of trade
intensity. In brief, the results do not provide strong support for the
Linder effect in the trade of differentiated agri-food products.
Journal: Applied Economics
Pages: 4095-4109
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.484000
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.484000
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4095-4109
Template-Type: ReDIF-Article 1.0
Author-Name: Igor Velickovski
Author-X-Name-First: Igor
Author-X-Name-Last: Velickovski
Author-Name: Geoffrey Thomas Pugh
Author-X-Name-First: Geoffrey Thomas
Author-X-Name-Last: Pugh
Title: Constraints on exchange rate flexibility in transition economies: a meta-regression analysis of exchange rate pass-through
Abstract:
This article uses Meta-Regression Analysis (MRA) to investigate exchange
rate pass-through to domestic prices, highlighting differences between
transition and developed economies. A total of 23 studies yielded 575
coefficients measuring exchange rate pass-through to import prices and
consumer prices for 23 developed and 12 transition economies. The MRA
results confirm the finding of many particular analyses that exchange rate
pass-through is less than complete. In addition, exchange rate
pass-through is higher to import prices than to consumer prices; and
exchange rate pass-through is higher in the long run than in the short
run. Regarding transition and developed economies, MRA suggests that there
is no statistically significant difference in exchange rate pass-through
to import prices. Yet, exchange rate pass-through to consumer prices is
significantly and substantially higher in transition than in developed
economies. This finding is consistent with the caution of many monetary
authorities in transition economies regarding exchange rate flexibility.
Journal: Applied Economics
Pages: 4111-4125
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.485927
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.485927
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4111-4125
Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Ochsen
Author-X-Name-First: Carsten
Author-X-Name-Last: Ochsen
Title: Recommendation, class repeating, and children's ability: German school tracking experiences
Abstract:
While the 2006 Progress in International Reading Literacy Study (PIRLS)
assesses the average ability of German primary school students as being
higher than average, the Programme for International Student Assessment
(PISA) studies (OECD, 2000, 2003, 2006) ranks German secondary school
students at a considerably lower level. This article examines whether a
teacher's recommendation for the secondary school track and class
repeating are causes for these ability differences. According to the
estimates, failures as a result of teachers' recommendations given at the
end of primary school are an important reason for the differences between
the two types of studies. Being required to repeat a school class
amplifies the inefficient management of children's abilities.
Journal: Applied Economics
Pages: 4127-4133
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.485929
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.485929
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4127-4133
Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Aizenman
Author-X-Name-First: Joshua
Author-X-Name-Last: Aizenman
Author-Name: Kenneth Kletzer
Author-X-Name-First: Kenneth
Author-X-Name-Last: Kletzer
Title: The life cycle of scholars and papers in economics - the 'citation death tax'
Abstract:
The information content of academic citations is a subject to debate.
This article views premature death as a tragic 'natural experiment',
outlining a methodology identifying the 'citation death tax' - the impact
of the death of productive economists on the patterns of their citations.
We rely on a sample of 428 papers written by 16 well-known economists who
died well before retirement, during the period 1975 to 1997. The news is
mixed: for half of the sample, we identify a large and significant
'citation death tax' for the average paper written by these scholars. For
these authors, the estimated average missing citations per paper
attributed to premature death ranges from 40% to 140% (the overall average
is about 90%), and the annual costs of lost citations per paper are in the
range 3-14%. Hence, a paper written 10 years before the author's death
avoids a citation cost that varies between 30% and 140%. For the other
half of the sample, there is no citation death tax; and for two Nobel
Prize-calibre scholars in this second group, Black and Tversky, citations
took off over time, reflecting the growing recognitions of their seminal
works.
Journal: Applied Economics
Pages: 4135-4148
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.485930
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.485930
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4135-4148
Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Capitanio
Author-X-Name-First: Fabian
Author-X-Name-Last: Capitanio
Author-Name: Maria Bielza Diaz-Caneja
Author-X-Name-First: Maria Bielza
Author-X-Name-Last: Diaz-Caneja
Author-Name: Carlo Cafiero
Author-X-Name-First: Carlo
Author-X-Name-Last: Cafiero
Author-Name: Felice Adinolfi
Author-X-Name-First: Felice
Author-X-Name-Last: Adinolfi
Title: Does market competitiveness significantly affect public intervention in agricultural insurance: the case in Italy
Abstract:
Analyses of agricultural insurance failures often assume the existence of
competitive supply, tracing the reasons for high insurance cost and
limited farmer participation to informational problems, and suggesting the
need for premium subsidization in order to increase participation.
However, in countries such as Spain and Italy, where agricultural
insurance is most highly subsidized, it could be that supply is not fully
competitive. In this article, we explore the incidence of public subsidies
to agricultural insurance premia when supply is noncompetitive. Through
the use of a simple empirical model of an insurance market, it is shown
that, while in the case of a competitive supply, subsidies to insurance
would benefit farmers, a monopolistic supply would capture most of the
subsidy, thus eliminating the potential incentive towards wider
participation by farmers. The model is applied to a panel of Italian farms
for different levels of risk aversion to demonstrate the limited effect
that a subsidy to a hypothetical all risk yield insurance would have on
farmer participation in the case of monopolistic supply.
Journal: Applied Economics
Pages: 4149-4159
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.487823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.487823
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4149-4159
Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Jones
Author-X-Name-First: Melanie
Author-X-Name-Last: Jones
Author-Name: Paul Latreille
Author-X-Name-First: Paul
Author-X-Name-Last: Latreille
Title: Disability and self-employment: evidence for the UK
Abstract:
This article examines the self-employment decision for disabled and
nondisabled workers in the UK. Using Labour Force Survey (LFS) data, it is
found that self-employment may provide an important means by which those
with work-limiting disabilities can accommodate their impairment.
Journal: Applied Economics
Pages: 4161-4178
Issue: 27
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.489816
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.489816
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Handle: RePEc:taf:applec:v:43:y:2011:i:27:p:4161-4178
Template-Type: ReDIF-Article 1.0
Author-Name: Anne-Laure Delatte
Author-X-Name-First: Anne-Laure
Author-X-Name-Last: Delatte
Author-Name: Julien Fouquau
Author-X-Name-First: Julien
Author-X-Name-Last: Fouquau
Title: The determinants of international reserves in the emerging countries: a nonlinear approach
Abstract:
In this article, we adopt a nonlinear approach to examine the dynamics of
the international reserves holdings by the emerging economies. To do so,
we estimate the demand for international reserves with a Panel Smooth
Transition Regression (PSTR) model that loosens two restricting
hypotheses, homogeneity and time-stability. We find evidence for the
presence of a nonlinear behaviour in the demand for international
reserves, a result that is new to the literature. The coefficients are
found to change smoothly, as a function of two threshold variables - out
of five candidates tested in total. Our specification accounts for the
acceleration of foreign exchange reserves accumulation that the linear
specifications fail to explain.
Journal: Applied Economics
Pages: 4179-4192
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.489886
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.489886
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4179-4192
Template-Type: ReDIF-Article 1.0
Author-Name: Fousseini Traore
Author-X-Name-First: Fousseini
Author-X-Name-Last: Traore
Title: The impact of the United States subsidies on world cotton price: evidence from ARDL bounds tests
Abstract:
This article investigates the impact of the United States subsidies on
world cotton price in a structural framework. It starts with a
simultaneous equations model of world cotton market, and then, it focuses
on the reduced form. Using the Autoregressive Distributed Lag (ARDL)
bounds tests of Pesaran et al. (2001), no evidence of cointegration
is found between the underlying variables. This contrasts with results
found in the classical framework, which highlight a strong evidence of a
negative impact of subsidies on cotton price, either in the short or long
run.
Journal: Applied Economics
Pages: 4193-4201
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491443
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491443
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4193-4201
Template-Type: ReDIF-Article 1.0
Author-Name: Camilla Andersson
Author-X-Name-First: Camilla
Author-X-Name-Last: Andersson
Author-Name: Erik Holmgren
Author-X-Name-First: Erik
Author-X-Name-Last: Holmgren
Author-Name: James MacGregor
Author-X-Name-First: James
Author-X-Name-Last: MacGregor
Author-Name: Jesper Stage
Author-X-Name-First: Jesper
Author-X-Name-Last: Stage
Title: Formal microlending and adverse (or nonexistent) selection: a case study of shrimp farmers in Bangladesh
Abstract:
Microcredit schemes have become a popular means of improving
smallholders' access to credit and making long term investment possible.
However, it remains to be explored whether the current microcredit schemes
are more successful than earlier formal small scale lending in identifying
successful borrowers. We studied shrimp farming in a rural region in
Bangladesh where formal microlending is well established, but where more
expensive informal microlending coexists with the formal schemes. Farmers
- both those who exclusively use formal loans and those who also use
informal loans - remain credit-constrained; both types overutilize labour
in order to reduce the need for working capital. However, the credit
constraint is actually milder for the informal borrowers: the implicit
shadow price of working capital is substantially higher in the group that
only takes formal loans than in the group that also uses informal loans.
These results suggest that informal lenders - with their closer ties to
the individual farmers - remain more successful in identifying those
smallholder farmers that are most likely to use the borrowed funds
successfully. Informal lenders have an information advantage that formal
microlenders lack: the latter need to find routes to access this
information in order for formal microcredit schemes to succeed.
Journal: Applied Economics
Pages: 4203-4213
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491444
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4203-4213
Template-Type: ReDIF-Article 1.0
Author-Name: David Black
Author-X-Name-First: David
Author-X-Name-Last: Black
Author-Name: Yi-Ping Tseng
Author-X-Name-First: Yi-Ping
Author-X-Name-Last: Tseng
Author-Name: Roger Wilkins
Author-X-Name-First: Roger
Author-X-Name-Last: Wilkins
Title: Do changes in demographic characteristics explain declining male employment rates? Examination of the Australian case using a propensity score re-weighting decomposition approach
Abstract:
Using Australian data spanning the period from 1981 to 2001, we apply a
propensity score re-weighting decomposition approach to investigate the
extent to which the large decline in the male employment population rate
over this period can be attributed to changes in socio-demographic
characteristics. We find that changes in observed characteristics account
for little of the aggregate decline. However, changes in characteristics
are found to be important for population sub groups. In particular,
changes in partner status and partner employment status have acted to
decrease employment rates of younger males, but increase employment rates
of older males. A further finding is that, holding observed
characteristics constant, there has been a very large decline in the
employment rate of 55-64-year-olds with bachelor degree qualifications. In
the course of applying the decomposition method, we illustrate that
validity of inferences depends on 'appropriate' specification of the
reweighting function.
Journal: Applied Economics
Pages: 4215-4226
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491445
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4215-4226
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jesus Such Devesa
Author-X-Name-First: Maria Jesus Such
Author-X-Name-Last: Devesa
Author-Name: Laura Parte Esteban
Author-X-Name-First: Laura Parte
Author-X-Name-Last: Esteban
Title: Spanish hotel industry: indebtedness determinants
Abstract:
This article analyses the indebtedness of the companies belonging to the
Spanish hotel industry. The internationalization process of Spanish hotel
companies requires a new approach to their financial strategies. The form
of expansion chosen in this process has an impact on the pace and volume
of the funds needed for it. Other items are incorporated to observe
different behaviour among hotel companies in relation with their
indebtedness process. Among analysed factors, we can observe the
importance of solvency, liquidity, and asset structure. The hotel
industry's means to explain individual indebtedness is also relevant,
demonstrating the fact that firms usually follow the sector's benchmark
when determining the level of indebtedness. Studies such those of
Grinblatt and Titman (2003) or Frank and Goyal (2009) confirm this same
hypothesis.
Journal: Applied Economics
Pages: 4227-4238
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491446
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491446
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4227-4238
Template-Type: ReDIF-Article 1.0
Author-Name: John Heywood
Author-X-Name-First: John
Author-X-Name-Last: Heywood
Author-Name: Uwe Jirjahn
Author-X-Name-First: Uwe
Author-X-Name-Last: Jirjahn
Author-Name: Georgi Tsertsvadze
Author-X-Name-First: Georgi
Author-X-Name-Last: Tsertsvadze
Title: Part-time work and the hiring of older workers
Abstract:
This research uses German establishment data to examine the relationship
between back loading compensation, the hiring of older workers and their
part time status. We confirm that establishments that defer compensation
are less likely to hire older workers. We demonstrate for the first time
that establishments that defer compensation are more likely to limit older
workers to part time jobs, when they do hire them. Thus, deferred
compensation plays a larger role in reducing the chances of older workers
being hired into full time jobs than would be inferred from past estimates
simply examining their odds of being hired at all.
Journal: Applied Economics
Pages: 4239-4255
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491447
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491447
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4239-4255
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Delgado
Author-X-Name-First: Francisco
Author-X-Name-Last: Delgado
Author-Name: Maria Jose Presno
Author-X-Name-First: Maria Jose
Author-X-Name-Last: Presno
Title: Convergence of fiscal pressure in the EU: a time series approach
Abstract:
The study of fiscal convergence in the EU is a relevant issue in the
context of economic integration and fiscal harmonization and we report new
empirical evidence on this topic using a time series approach. We apply
unit root and stationarity tests with an endogenous break for the study of
long run, deterministic and stochastic convergence of the national tax
burden taking Germany, the United Kingdom and the European average as
benchmarks. Only the United Kingdom and Germany show long run convergence
and few countries converge despite harmonization efforts and fiscal
competition.
Journal: Applied Economics
Pages: 4257-4267
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491449
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491449
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4257-4267
Template-Type: ReDIF-Article 1.0
Author-Name: Corrado Andini
Author-X-Name-First: Corrado
Author-X-Name-Last: Andini
Title: Financial development and long-run growth: is the cross-sectional evidence robust?
Abstract:
In a seminal paper, Levine, Loayza and Beck (LLB, 2000) provide
cross-sectional evidence showing that financial development has positive
average impact on long-run growth, using a sample of 71 countries. We
argue that the evidence is sensitive to the presence of outliers.
Journal: Applied Economics
Pages: 4269-4275
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491450
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491450
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4269-4275
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Johnson
Author-X-Name-First: Christopher
Author-X-Name-Last: Johnson
Author-Name: John Formby
Author-X-Name-First: John
Author-X-Name-Last: Formby
Author-Name: Hoseong Kim
Author-X-Name-First: Hoseong
Author-X-Name-Last: Kim
Title: Economic growth and poverty: a tale of two decades
Abstract:
The relationship between poverty and economic growth is reexamined using
pooled cross section and time series estimates of state level poverty.
Empirical evidence is provided for both cash and comprehensive income
headcounts and Sen indexes of poverty. Particular emphasis is placed on
the differential impacts of growth on poverty in the long economic
expansions of the 1980s and 1990s. Contrary to prior work, we find that
the long-term effects of growth did not strengthen and may have actually
diminished during the 1990s.
Journal: Applied Economics
Pages: 4277-4288
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491451
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491451
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4277-4288
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Lamla
Author-X-Name-First: Michael
Author-X-Name-Last: Lamla
Author-Name: Sarah Lein
Author-X-Name-First: Sarah
Author-X-Name-Last: Lein
Title: What matters when? The impact of ECB communication on financial market expectations
Abstract:
This article analyses financial markets' reaction to European Central
Bank's (ECB) communication. We apply a novel indicator that quantifies the
contents of the ECB's introductory statements and allows disentangling ECB
statements on prices, the real and the monetary sector. We provide
evidence that it matters what issue the ECB is speaking about: especially,
the ECB's statements on price developments represent important news to
financial markets. It also matters when the ECB affects markets:
communication drives maturities above 4 months.
Journal: Applied Economics
Pages: 4289-4309
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491452
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491452
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4289-4309
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Crespo Cuaresma
Author-X-Name-First: Jesus Crespo
Author-X-Name-Last: Cuaresma
Author-Name: Tapas Mishra
Author-X-Name-First: Tapas
Author-X-Name-Last: Mishra
Title: Human capital, age structure and growth fluctuations
Abstract:
This article assesses the empirical relationship between per capita
income growth fluctuations and the age-structured human capital variations
across four groups of geographically clustered developed and developing
countries from spatial perspective. We estimate a spatial Vector
Autoregressive (VAR) model of income dynamics where the distance between
countries is defined on relational space based on their similarity in
appropriation tendency of human capital in the production processes. These
distances are computed using a newly developed human capital data set
which fully characterizes the demographic structure of human capital, and
thus underlines the joint relevance of demography and human capital in
economic growth. Spatial effects on growth interdependence and
complementarity are then explored with respect to the proposed distance
metrics. Our results imply that significant cross-country growth
interdependence based on human capital distances exists among defined
country groups suggesting the need for a cooperative policy programme
among them. We also find that the relationship between economic growth and
human capital is highly nonlinear as a function of the proposed human
capital distance.
Journal: Applied Economics
Pages: 4311-4329
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491453
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491453
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4311-4329
Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Skoufias
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Skoufias
Author-Name: Vincenzo Di Maro
Author-X-Name-First: Vincenzo
Author-X-Name-Last: Di Maro
Author-Name: Teresa Gonzalez-Cossio
Author-X-Name-First: Teresa
Author-X-Name-Last: Gonzalez-Cossio
Author-Name: Sonia Rodriguez Ramirez
Author-X-Name-First: Sonia Rodriguez
Author-X-Name-Last: Ramirez
Title: Food quality, calories and household income
Abstract:
We investigate the relationship between calories, food quality and
household per capita expenditure using regression and semiparametric
methods on a sample of poor households from rural Mexico, where Programa
de Apoyo Alimentario (PAL), a targeted nutritional programme, is
operating. The semiparametric method yields an estimate of the elasticity
between calories and expenditure of 0.39 below the median and 0.28 above.
The corresponding estimates of the elasticity of the calorie price are
0.48 below the median and 0.45 above. We also examine the extent to which
the expenditure elasticity of the calorie price is explained by
substitution between and within major food groups. We find that there is a
very high incidence of substitution within cereals (especially for poor
households) and that between group substitution explains at most 59% of
the income elasticity for food quality. These estimates suggest that the
potential of a cash transfer programme to have a positive impact on the
food diversity and the nutritional status of households is quite limited.
Journal: Applied Economics
Pages: 4331-4342
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491454
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4331-4342
Template-Type: ReDIF-Article 1.0
Author-Name: Miles Finney
Author-X-Name-First: Miles
Author-X-Name-Last: Finney
Author-Name: Mann Yoon
Author-X-Name-First: Mann
Author-X-Name-Last: Yoon
Title: Interdependence in the technology adoption decision among municipalities
Abstract:
This study examines the interdependence among municipalities in the
discrete decision to adopt internet technology. Results from probit
specifications with interaction effects suggest that cities are influenced
by nearby neighbours with similar population size in developing a website.
Evidence is also presented indicating interaction among municipalities in
the decision to use internet technology to facilitate financial
transactions.
Journal: Applied Economics
Pages: 4343-4352
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491455
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491455
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4343-4352
Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Borland
Author-X-Name-First: Jeff
Author-X-Name-Last: Borland
Author-Name: Yi-Ping Tseng
Author-X-Name-First: Yi-Ping
Author-X-Name-Last: Tseng
Title: Does 'Work for the Dole' work?: an Australian perspective on work experience programmes
Abstract:
This study examines the effect of Work for the Dole (WfD), a
community-based work experience programme, on transitions out of
unemployment in Australia. To evaluate the WfD programme, a
quasi-experimental exact matching approach is applied. Participation in
the WfD programme is found to be associated with a large and significant
adverse effect on the likelihood of exiting unemployment payments. The
main potential explanation is the existence of a 'lock-in' effect whereby
programme participants reduce job search activity.
Journal: Applied Economics
Pages: 4353-4368
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491457
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491457
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4353-4368
Template-Type: ReDIF-Article 1.0
Author-Name: Cliff Nowell
Author-X-Name-First: Cliff
Author-X-Name-Last: Nowell
Author-Name: Therese Grijalva
Author-X-Name-First: Therese
Author-X-Name-Last: Grijalva
Title: Trends in co-authorship in economics since 1985
Abstract:
It has been often noted (McDowell and Melvin, 1983; Barnett et al.,
1988; Piette and Ross, 1992; Sutter and Kocher, 2004) that the share of
co-authored papers in economics has been increasing steadily. The purpose
of this study is to investigate some of the theories as to why
co-authorship has been increasing in the economics profession. Using data
on the publication records of faculty at 129 US colleges and universities
that offer doctoral degrees in Economics, Poisson and logit regression
models are estimated to explain co-authorship. Results indicate that the
likelihood of co-authorship is greater for papers that combine
quantitative analysis with another field and for papers published in
higher quality journals. Further, co-authorship appears to differ in the
many subfields of economics, with the field of Economic History and
History of Thought (Journal of Economic Literature (JEL) categories N and
B) to be the least likely to co-author and the fields of Financial
Economics (JEL category G) and Agricultural and Natural Resource Economics
(JEL category Q) to be the most prone to co-authorship.
Journal: Applied Economics
Pages: 4369-4375
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491458
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491458
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4369-4375
Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo Garcia Perez
Author-X-Name-First: Carmelo Garcia
Author-X-Name-Last: Perez
Author-Name: Mercedes Prieto Alaiz
Author-X-Name-First: Mercedes Prieto
Author-X-Name-Last: Alaiz
Title: Using the Dagum model to explain changes in personal income distribution
Abstract:
This article studies the evolution of personal income distribution in
Spain from 1995 to 2005 using the Dagum model. Dagum's three parameter
model (type I) provides a good fitting to empirical income distributions
in Spain. Moreover, its parameters can be interpreted as economic
indicators of income distribution changes. After studying the economic
interpretation of the Dagum model parameters, we analyse the impact of
parameter changes on different income percentiles and also on the
evolution of inequality in Spain using data from the European Community
Household Panel (ECHP) and the European Union Statistics on Income and
Living Conditions (EU-SILC).
Journal: Applied Economics
Pages: 4377-4386
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491459
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491459
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4377-4386
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Mohn
Author-X-Name-First: Klaus
Author-X-Name-Last: Mohn
Author-Name: Petter Osmundsen
Author-X-Name-First: Petter
Author-X-Name-Last: Osmundsen
Title: Asymmetry and uncertainty in capital formation: an application to oil investment
Abstract:
Theories of irreversible investment suggest a negative relation between
investment and uncertainty, and nonlinear adjustment costs open for
asymmetries in the adjustment of fixed capital. We propose an econometric
modelling approach to estimate and test the key predictions of modern
investment theory, including asymmetric dynamics and various uncertainty
indicators. Our application on a data set from the oil industry offers
empirical support for both asymmetric dynamics and uncertainty in oil and
gas investment.
Journal: Applied Economics
Pages: 4387-4401
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491460
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491460
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4387-4401
Template-Type: ReDIF-Article 1.0
Author-Name: Ragnar Tveteras
Author-X-Name-First: Ragnar
Author-X-Name-Last: Tveteras
Author-Name: Ola Flaten
Author-X-Name-First: Ola
Author-X-Name-Last: Flaten
Author-Name: Gudbrand Lien
Author-X-Name-First: Gudbrand
Author-X-Name-Last: Lien
Title: Production risk in multi-output industries: estimates from Norwegian dairy farms
Abstract:
Farmers who produce multiple outputs are portfolio managers in the sense
that they use inputs to balance expected economic return and variance of
return. This article estimates the structure of the stochastic multioutput
production technology in Norwegian dairy farming, allowing for a more
flexible specification of the technology than previous studies. We find
that an increase in input levels leads primarily to higher output
variability, and that inputs also influence the covariance of shocks
between outputs. Risk reducing effects of inputs on outputs are primarily
present in the covariance functions. Technical change leads to shifts in
the profit distribution over the data period, but no welfare improvement
for risk averse farmers.
Journal: Applied Economics
Pages: 4403-4414
Issue: 28
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491461
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491461
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Handle: RePEc:taf:applec:v:43:y:2011:i:28:p:4403-4414
Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Menkhoff
Author-X-Name-First: Lukas
Author-X-Name-Last: Menkhoff
Title: Are momentum traders different? Implications for the momentum puzzle
Abstract:
This article examines the puzzlingly high unexploited momentum returns
from a new perspective. We analyse characteristics of momentum traders in
a sample of 692 fund managers. We find that momentum traders are 'defined'
by their short-term horizon, by a behavioural view on the market and by a
somewhat lower degree of risk aversion, whereas they are like other fund
managers with respect to sophistication. This is consistent with the
interpretation that momentum returns may compensate for the risk of
momentum trading on short-term horizons and that the short-term oriented
momentum traders are not in a position to perform long-term arbitrage.
Journal: Applied Economics
Pages: 4415-4430
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491462
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491462
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4415-4430
Template-Type: ReDIF-Article 1.0
Author-Name: Juan de Dios Tena
Author-X-Name-First: Juan
Author-X-Name-Last: de Dios Tena
Author-Name: Edoardo Otranto
Author-X-Name-First: Edoardo
Author-X-Name-Last: Otranto
Title: A realistic model for official interest rate movements and their consequences
Abstract:
This article extends the Vector Autoregression (VAR) methodology to
examine the consequences of monetary policy decisions by considering two
types of nonlinearities in the determination of official interest rates:
(1) the asymmetry related to the different nature of the discrete and
infrequent positive and negative interest rate movements determined by
central bankers and (2) the convexity in the transmission of policy shocks
induced by the nonnegativity constraint in interest rates. For the UK, we
find some evidence of both types of asymmetries. In the US, responses to
unexpected interest rate shocks are far more symmetric. Results highlight
the importance of considering all types of asymmetries when studying
monetary transmission.
Journal: Applied Economics
Pages: 4431-4447
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491463
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491463
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4431-4447
Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Coates
Author-X-Name-First: Dennis
Author-X-Name-Last: Coates
Author-Name: Brad Humphreys
Author-X-Name-First: Brad
Author-X-Name-Last: Humphreys
Title: The effect of professional sports on the earnings of individuals: evidence from microeconomic data
Abstract:
This article examines the impact of professional sports franchises in
labour markets using data from the March Supplement to the Current
Population Survey (CPS) for workers employed in specific occupational
groups in all large US cities from 1983 to 2002. Results from a standard
wage model suggest that professional football franchises increase average
hourly and weekly earnings of males employed in these occupations, but
professional baseball franchises reduce them. These results support
growing evidence that professional sports affect labour markets. However,
the mixed nature of the association between sport and earnings provides
little economic justification for government subsidies for professional
sport.
Journal: Applied Economics
Pages: 4449-4459
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491464
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491464
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4449-4459
Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Author-Name: Rob Simmons
Author-X-Name-First: Rob
Author-X-Name-Last: Simmons
Title: Advertising media strategies in the film industry
Abstract:
The primary aim of this article is to estimate the multiple determinants
of film advertising expenditures in four important media, namely
television, press, outdoor and radio, in the UK. First, television
advertising, the leading film advertising medium, is examined as part of a
system of equations, capturing the interdependences between advertising,
the number of screens on which films are initially shown and box office
revenues. Then a reduced form model is put forward to reveal the
determinants of film advertising in the four media. While major
distribution companies have different preferences for the use of the
alternative advertising media, results highlight the importance of quality
signals, such as critical reviews, in determining advertising expenditures
in the film industry. Moreover, advertising expenditures can themselves be
considered to offer potential cinema goers signals of film quality.
Journal: Applied Economics
Pages: 4461-4468
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491466
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491466
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4461-4468
Template-Type: ReDIF-Article 1.0
Author-Name: Garrick Blalock
Author-X-Name-First: Garrick
Author-X-Name-Last: Blalock
Author-Name: Jed DeVaro
Author-X-Name-First: Jed
Author-X-Name-Last: DeVaro
Author-Name: Stephanie Leventhal
Author-X-Name-First: Stephanie
Author-X-Name-Last: Leventhal
Author-Name: Daniel Simon
Author-X-Name-First: Daniel
Author-X-Name-Last: Simon
Title: Gender bias in power relationships: evidence from police traffic stops
Abstract:
We test for the existence of gender bias in power relationships.
Specifically, we examine whether police officers are less likely to issue
traffic tickets to men or to women during traffic stops. Whereas the
conventional wisdom, which we document with surveys, is that women are
less likely to receive tickets, our analysis shows otherwise. Examination
of a pooled sample of traffic stops from five locations reveals no gender
bias, but does show significant regional variation in the likelihood of
citations. Analysis by location shows that women are more likely to
receive citations in three of the five locations. Men are more likely to
receive citations in the other two locations. To our knowledge, this study
is the first to test for gender bias in traffic stops, and clearly refutes
the conventional wisdom that police are more lenient towards women.
Journal: Applied Economics
Pages: 4469-4485
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491467
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491467
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4469-4485
Template-Type: ReDIF-Article 1.0
Author-Name: Pallab Mozumder
Author-X-Name-First: Pallab
Author-X-Name-Last: Mozumder
Author-Name: Robert Berrens
Author-X-Name-First: Robert
Author-X-Name-Last: Berrens
Title: Social context, financial stakes and hypothetical bias: an induced value referendum experiment
Abstract:
This article investigates the effect of social context in an induced
value, public good referendum experiment. In a split-sample treatment,
social context is simulated by requiring participants to potentially have
to disclose their vote to the group (voting disclosure) across both
hypothetical and real settings. The experimental design also varies the
cost (a coercive tax), and includes an uncertain level of benefit from the
public good. The design allows investigation of the role of social context
in both hypothetical and real referenda and its interaction with changes
in the financial stakes involved (costs and potential benefits). Results
show evidence of hypothetical bias, but also a social context effect that
occurs in both real and hypothetical settings. This social context effect
is larger than the effect of hypothetical bias, but is muted by the
magnitude of costs and potential benefits. Hypothetical cases are also
shown to be more prone to the social context effect.
Journal: Applied Economics
Pages: 4487-4499
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491468
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491468
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4487-4499
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Prince
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Prince
Title: Relating inertia and experience in technology markets: an analysis of households' personal computer choices
Abstract:
This article empirically analyses how households' PC purchasing
behaviours change with market experience. We find that: households
generally exhibit inertia in their PC purchases, the level of inertia is
increasing as a function of experience on the PC market, and, for
households switching brands, the likelihood of buying a lesser-known brand
increases with experience, regardless of the brand of the previous
purchase. These findings are consistent with the predictions of a simple
learning model, and extend our understanding of how market experience
affects purchasing behaviour to an important technology product, with
implications that may apply to other similar products.
Journal: Applied Economics
Pages: 4501-4514
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491469
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491469
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4501-4514
Template-Type: ReDIF-Article 1.0
Author-Name: Tom Stargardt
Author-X-Name-First: Tom
Author-X-Name-Last: Stargardt
Title: Modelling pharmaceutical price changes in Germany: a function of competition and regulation
Abstract:
In this article, price changes for pharmaceuticals in Germany are
modelled as a function of regulation and competition. Changes in the
regulatory environment, and in the competitive environment of a product,
are taken into account. To follow the hierarchical structure, a four-level
random intercept model was constructed. Price changes were allowed to vary
randomly between drug classes, between different substances within a drug
class, and between different manufacturers of a substance. This study
provides evidence that two policy measures - reference pricing and
temporary price freezes - succeeded in reducing prices in Germany between
January 2004 and June 2006. For off-patent substances - depending on the
competition faced by a drug - the effect of competition can be greater
than the effect of regulation. The study, therefore, not only demonstrates
the importance of competition between and within drug classes, it also
provides evidence that generic entry has substantial effects on the prices
of branded products.
Journal: Applied Economics
Pages: 4515-4526
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491470
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491470
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4515-4526
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Luis Raymond
Author-X-Name-First: Jose Luis
Author-X-Name-Last: Raymond
Author-Name: Jose Luis Roig
Author-X-Name-First: Jose Luis
Author-X-Name-Last: Roig
Title: Intrafirm human capital externalities and selection bias
Abstract:
This article investigates the existence of intrafirm human capital
externalities in the Spanish economy. In doing so, it focusses on two
estimation issues. First, a semiparametric methodology is used to estimate
externalities in a more flexible way that allows to affect all parameters
in the equation. Second, two approaches to control for selection bias are
designed for use in cross-section data. Our results show a higher
externality effect on wages when using the semi parametric approach as
compared to the standard estimation approach. Additionally, the
estimations even when controlling for selection bias give evidence of
externalities.
Journal: Applied Economics
Pages: 4527-4536
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491471
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491471
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4527-4536
Template-Type: ReDIF-Article 1.0
Author-Name: Esther Del Brio
Author-X-Name-First: Esther
Author-X-Name-Last: Del Brio
Author-Name: Elida Maia-Ramires
Author-X-Name-First: Elida
Author-X-Name-Last: Maia-Ramires
Author-Name: Alberto De Miguel
Author-X-Name-First: Alberto
Author-X-Name-Last: De Miguel
Title: Ownership structure and diversification in a scenario of weak shareholder protection
Abstract:
This work examines the influences of ownership concentration and insider
ownership on corporate strategies for diversification within a scenario
characterized by poor protection of shareholder interests. We find
evidence of a quadratic relationship between ownership concentration and
diversification, and a cubic relationship between diversification and
insider ownership. These results point towards the high probability of
both expropriation and entrenchment phenomena, respectively, in this kind
of scenario. We also find that concentrated ownership requires high levels
of insider ownership, in order to prevent negative externalities of
diversification. Another result shows that entrenchment externalities
affect diversification before they erode firm value, which suggests that
for low levels of diversification, firm value is still not negatively
affected. Additionally, our results show that control mechanisms, such as
debt, director remuneration and compliance with codes of good practice,
are negatively related to the level of diversification. Overall, our
results confirm the theoretical relevance of agency theory in explaining
managerial attitudes towards corporate strategy, i.e. diversification.
Furthermore, companies characterized by deficiencies in shareholder legal
protection, concentrated ownership structures and a higher likelihood of
managers being entrenched, should focus on the correct functioning of
corporate governance mechanisms.
Journal: Applied Economics
Pages: 4537-4547
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491472
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491472
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4537-4547
Template-Type: ReDIF-Article 1.0
Author-Name: Marcella D'Uva
Author-X-Name-First: Marcella
Author-X-Name-Last: D'Uva
Author-Name: Rita De Siano
Author-X-Name-First: Rita
Author-X-Name-Last: De Siano
Title: Time series approaches to Italian regional convergence
Abstract:
This article investigates the evolution of the gap between Italian
regions and Italy as a whole during the period of 1980 to 2007. We tested
for the presence of the stochastic and β-convergence hypotheses
using different time series approaches. The former was studied, first, for
the entire sample period and then, with an exogenous instantaneous break
in the series. The presence of β-convergence, instead, was estimated
considering a known and an unknown trend break date model. Our results
show that most of the regions do not converge in an 'actual' way, since
they do not present a stochastic and β-convergence simultaneously.
Journal: Applied Economics
Pages: 4549-4559
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491473
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491473
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4549-4559
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Eichler
Author-X-Name-First: Stefan
Author-X-Name-Last: Eichler
Author-Name: Dominik Maltritz
Author-X-Name-First: Dominik
Author-X-Name-Last: Maltritz
Title: Currency crises and the stock market: empirical evidence for another type of twin crisis
Abstract:
We explore the dependency between currency crises and the stock market in
emerging economies. Our focus is two-fold. First, the risk of a currency
crisis rises as the foreign stake in the domestic stock market increases.
Successful economies with high capital flows into their booming stock
markets especially are prone to stock market-induced currency crises.
Second, we apply the dividend growth model to show that stock markets
crash in the run-up to a currency crisis. This new type of twin crisis is
empirically tested by employing a logit framework using quarterly data for
33 emerging economies for 1994Q1-2007Q4.
Journal: Applied Economics
Pages: 4561-4587
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491474
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491474
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4561-4587
Template-Type: ReDIF-Article 1.0
Author-Name: Tindara Addabbo
Author-X-Name-First: Tindara
Author-X-Name-Last: Addabbo
Author-Name: Donata Favaro
Author-X-Name-First: Donata
Author-X-Name-Last: Favaro
Title: Gender wage differentials by education in Italy
Abstract:
In this article we evaluate wage differentials in Italy combining gender
and education perspectives. The main goal of this article is to verify
whether the extent of the gender pay gap varies between highly- and
low-educated workers, and whether or not the role played by gender
differences in characteristics and in market rewards is similar in the two
groups. We apply quantile regression analysis and an adaptation of the
procedure suggested by Machado and Mata (2005) to evaluate the predicted
wage gap at different points of the female wage distribution scale. The
analysis is carried out on the Italian sample of the last available year
of the European Community Household Panel (ECHP). We show that the extent
and the trend of the gap predicted across the female distribution is
sharply different between groups with diverse educational levels. In the
case of low-educated workers, although the predicted gap is largely
explained by differences in rewards, lower levels of education or
experience are responsible for the gap, especially on the right-hand side
of the distribution. On the contrary, highly-educated females have better
characteristics than highly-educated men that partially compensate the
rather high difference in returns, in particular at the extremes of the
distribution.
Journal: Applied Economics
Pages: 4589-4605
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.491475
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.491475
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4589-4605
Template-Type: ReDIF-Article 1.0
Author-Name: Lex Borghans
Author-X-Name-First: Lex
Author-X-Name-Last: Borghans
Author-Name: Bas ter Weel
Author-X-Name-First: Bas
Author-X-Name-Last: ter Weel
Title: Computers, skills and wages
Abstract:
Computer technology is most prominently used by skilled, high-wage
workers. This suggests that computer use requires skills to take full
advantage of the possibilities, which are particularly present among
relatively skilled workers. This article develops a simple technology
adoption model showing that the decision to adopt computer technology
depends on (i) the tasks to be performed, (ii) the level of skill or
education and (iii) the level of wages. Applying this model to British
data, it is shown that the effect of wages and particular tasks on
computer adoption is larger than the effect of skills on adoption. The
estimates suggest that in Britain computer use is likely to be a matter of
cost efficiency and not so much of workers' skills.
Journal: Applied Economics
Pages: 4607-4622
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.493138
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493138
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4607-4622
Template-Type: ReDIF-Article 1.0
Author-Name: Mao-Wei Hung
Author-X-Name-First: Mao-Wei
Author-X-Name-Last: Hung
Author-Name: Jr-Yan Wang
Author-X-Name-First: Jr-Yan
Author-X-Name-Last: Wang
Title: Loss aversion and the term structure of interest rates
Abstract:
This article studies how the loss averse behaviour affects the term
structure of real interest rates. Since the pro-cyclical conditional
expected marginal rate of substitution, implied from the US consumption
data, is consistent with the proposition of loss aversion, we incorporate
the loss averse behaviour of prospect theory into the consumption-based
asset pricing model. Motivated by the similarity between habit formation
and the prospect theory utility, habit formation is exploited to determine
endogenously the reference point of this behavioural finance utility. The
highly curved characteristic of the term structure of real interest rates
can thus be captured by the additional consideration of loss aversion.
This model also fits the downward sloping volatility of the real yield
curve in the data of US Treasury Inflation-Protection Securities (TIPS).
Moreover, depending on the effective risk attitude of the representative
agent with the loss averse behaviour of prospect theory, our model is
capable of generating a normal or an inverted yield curve.
Journal: Applied Economics
Pages: 4623-4640
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.493139
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493139
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4623-4640
Template-Type: ReDIF-Article 1.0
Author-Name: Shandre Thangavelu
Author-X-Name-First: Shandre
Author-X-Name-Last: Thangavelu
Author-Name: Liu Haoming
Author-X-Name-First: Liu
Author-X-Name-Last: Haoming
Author-Name: Park Cheolsung
Author-X-Name-First: Park
Author-X-Name-Last: Cheolsung
Author-Name: Ang Boon Heng
Author-X-Name-First: Ang Boon
Author-X-Name-Last: Heng
Author-Name: James Wong
Author-X-Name-First: James
Author-X-Name-Last: Wong
Title: The determinants of training participation in Singapore
Abstract:
This article uses the Singapore Labour Force survey data to examine the
determinants of workers' participation in training programmes in
Singapore. The results show that different socio-demographic and
employment related characteristics affect the training participation of
workers. Well-educated and better paid workers are much more likely to
participate in training programmes than others. Age has a positive impact
on training participation for younger workers (under 37 years), but a
negative effect on older workers' participation. The results also indicate
that occupational affiliations have a significant impact on training
participation. We also find that married workers seem to be less likely to
participate in training programmes, but the difference between married and
single is only significant at the 10% level. Finally, gender does not have
any significant effect at any conventional level although the coefficient
on the female dummy is positive, suggesting females might be slightly more
likely to participate in training programmes.
Journal: Applied Economics
Pages: 4641-4649
Issue: 29
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.493140
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493140
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Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4641-4649
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Perelman
Author-X-Name-First: Sergio
Author-X-Name-Last: Perelman
Author-Name: Daniel Santin
Author-X-Name-First: Daniel
Author-X-Name-Last: Santin
Title: Imposing monotonicity on outputs in parametric distance function estimations
Abstract:
The technology set involved in the estimation of a multi-output
production frontier theoretically implies monotonicity on outputs. This is
because an efficient firm cannot reduce the vector of outputs holding the
vector of inputs fixed while it still belongs to the frontier. In
empirical studies dealing with the estimation of parametric distance
functions, this hypothesis is often violated by observations with far from
average characteristics. To overcome this limitation, we propose a new
approach for allowing the easy imposition of monotonicity on outputs in
this context. This methodology is tested in the educational sector using
Spanish student level data from the Programme for International Student
Assessment (PISA) database. The results indicate that a nonnegligible
8.33% of the production units break the monotonicity assumption.
Furthermore, although there is no statistically significant difference in
efficiency distribution by school ownership, our methodology helps to
detect a slight worse mathematical performance for students attending
public schools.
Journal: Applied Economics
Pages: 4651-4661
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.493141
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493141
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4651-4661
Template-Type: ReDIF-Article 1.0
Author-Name: Helmut Herwartz
Author-X-Name-First: Helmut
Author-X-Name-Last: Herwartz
Author-Name: Annekatrin Niebuhr
Author-X-Name-First: Annekatrin
Author-X-Name-Last: Niebuhr
Title: Growth, unemployment and labour market institutions: evidence from a cross-section of EU regions
Abstract:
The responsiveness of unemployment to growth is an issue of ongoing
political and academic interest. Economic growth is supposed to be the key
to increase labour demand and reduce unemployment. Departing from Okun's
law, most research on the unemployment intensity of growth has focused on
national disparities and the role of labour market institutions. Empirical
evidence at the regional level is scarce. We investigate differences in
regional labour market responsiveness and their potential determinants for
a cross section of European regions. The data set covers the NUTS 2
regions in the EU15 for the period 1980 to 2002. Following a spatial
modelling approach interaction among neighbouring labour markets is taken
into account. Our findings point to substantial differences in labour
market effects of output growth among European countries and regions. Both
national labour market institutions and regional characteristics, such as
structural change explain a significant part of these disparities.
Journal: Applied Economics
Pages: 4663-4676
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.493142
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493142
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4663-4676
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Morrison
Author-X-Name-First: Mark
Author-X-Name-Last: Morrison
Author-Name: Darla Hatton MacDonald
Author-X-Name-First: Darla Hatton
Author-X-Name-Last: MacDonald
Title: A comparison of compensating surplus and budget reallocation with opportunity costs specified
Abstract:
The use of most nonmarket valuation techniques is predicated on
respondents paying additional amounts of money for increased provision of
a public good. However, in many circumstances this may not be appropriate.
Treaty rights or the capacity of a government to raise and collect taxes
in the context of a developing country may preclude the introduction of
new taxes. Alternatively, there may be settings where respondents reject
the notion of an additional payment and a different approach to estimating
nonmarket values is needed. This article demonstrates a methodology for
estimating compensating budget reallocation, which is the amount of
expenditure on other public goods that respondents are willing to forego
for the government to provide more of another public good. One of the main
contributions of this article is a demonstration of how to improve the
specification of the opportunity costs of budget reallocations. Second,
using choice modelling for the estimation of budget reallocations is
compared with the standard approach of estimating compensating surplus.
The two approaches produce aggregate results that are of a similar
magnitude, however the relative importance of the environmental attributes
differs. We also investigate the similarity of value estimates across
income groups, and similar to Swallow and McGonagle (2006), we find that
budget reallocations produce a different set of preferences for lower
income earners.
Journal: Applied Economics
Pages: 4677-4688
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.493143
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.493143
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4677-4688
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Park
Author-X-Name-First: Timothy
Author-X-Name-Last: Park
Author-Name: Elizabeth Davis
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Davis
Title: Productivity and efficiency impacts of human resources practices in food retailing
Abstract:
Data from an annual survey of US supermarkets including detailed
information on store characteristics, operations, and performance are used
to develop an index of Human Resource (HR) practices for food retailers. A
stochastic frontier analysis demonstrates that HR policies have a positive
impact on value added in food retailing establishments while efficiency is
not adversely influenced by HR practices. Managerial implications of the
model link technical inefficiency estimates for retailers to slight
declines in store level gross margins. Evaluated on the basis of technical
efficiency, retailers choosing a portfolio of HR practices that score high
on the HR index are able to match the performance of competitors pursuing
an alternative low HR strategy.
Journal: Applied Economics
Pages: 4689-4697
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498348
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498348
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4689-4697
Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Author-Name: Rob Simmons
Author-X-Name-First: Rob
Author-X-Name-Last: Simmons
Title: Factors determining UK album success
Abstract:
This article uses a recently compiled dataset on the UK album sales to
determine which factors contribute to best-selling album sales success. We
control for factors including length of time since release, nationality of
artist, artist type and album type, testing the increasing returns to
information hypothesis. Information on general public online review scores
for the albums in the dataset allows for a strong test of the accuracy of
online reviews in predicting music sales, as online reviews are a
relatively recent phenomenon, while the release of many of the albums
predates the widespread use of Internet.
Journal: Applied Economics
Pages: 4699-4705
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498349
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498349
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4699-4705
Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Courty
Author-X-Name-First: Pascal
Author-X-Name-Last: Courty
Author-Name: Mario Pagliero
Author-X-Name-First: Mario
Author-X-Name-Last: Pagliero
Title: Does responsive pricing smooth demand shocks?
Abstract:
Using data from a unique pricing experiment, we investigate Vickrey's
conjecture that responsive pricing can be used to smooth both predictable
and unpredictable demand shocks. Our evidence shows that increasing the
responsiveness of price to demand conditions reduces the magnitude of
deviations in capacity utilization rates from a pre-determined target
level. A 10% increase in price variability leads to a decrease in the
variability of capacity utilization rates between 2% and 6%. We discuss
implications for the use of demand-side incentives to deal with
congestible resources.
Journal: Applied Economics
Pages: 4707-4721
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498350
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498350
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4707-4721
Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Bang Jou
Author-X-Name-First: Jyh-Bang
Author-X-Name-Last: Jou
Author-Name: Tan (Charlene) Lee
Author-X-Name-First: Tan
Author-X-Name-Last: (Charlene) Lee
Title: Mutually exclusive investment with technical uncertainty
Abstract:
A firm, which faces technical uncertainty as in Pindyck (1993) can choose
between two mutually exclusive investment projects, Projects 1 and 2. The
added option to exercise Project 2 makes the firm less likely to exercise
Project 1. An increase in the degree of technical uncertainty, the
investment rate or the investment value upon completion for Project 2
encourages the firm to exercise Project 2 by increasing the trigger level
of the expected cost of Project 2. This, however, ambiguously affects the
firm's incentive to exercise Project 1, as the firm would rather implement
Project 1 (2) in a region where the expected cost of Project 2 is
relatively high (low).
Journal: Applied Economics
Pages: 4723-4728
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498351
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498351
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4723-4728
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Gries
Author-X-Name-First: Thomas
Author-X-Name-Last: Gries
Author-Name: Manfred Kraft
Author-X-Name-First: Manfred
Author-X-Name-Last: Kraft
Author-Name: Daniel Meierrieks
Author-X-Name-First: Daniel
Author-X-Name-Last: Meierrieks
Title: Financial deepening, trade openness and economic growth in Latin America and the Caribbean
Abstract:
This contribution investigates the causal interactions between financial
deepening, trade openness and economic growth in 13 Latin American and
Caribbean countries. We construct a composite indicator for financial
deepening and use it to detect Granger causality within a modified Vector
Autoregressive/Vector Error Correction Model (VAR/VECM) framework. We find
almost no evidence for the popular hypothesis of finance-led growth.
Evidence of bidirectional finance-growth causality is stronger but mostly
instable in the long run. Most results indicate a demand following or
insignificant causal relationship between finance and growth. There is
also no evidence that finance indirectly induces growth via the channel of
trade openness. Hence, policies that prioritize financial and trade sector
development cannot be supported.
Journal: Applied Economics
Pages: 4729-4739
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498352
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498352
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4729-4739
Template-Type: ReDIF-Article 1.0
Author-Name: Mehtap Kesriyeli
Author-X-Name-First: Mehtap
Author-X-Name-Last: Kesriyeli
Author-Name: Erdal Ozmen
Author-X-Name-First: Erdal
Author-X-Name-Last: Ozmen
Author-Name: Serkan Yiğit
Author-X-Name-First: Serkan
Author-X-Name-Last: Yiğit
Title: Corporate sector liability dollarization and exchange rate balance sheet effect in Turkey
Abstract:
In this study, we investigate the causes and balance sheet effect
consequences of Liability Dollarization (LD) of nonfinancial sectors in
Turkey. The dynamic panel data Generalized Method of Moments (GMM) results
suggest that both sector specific and macroeconomic variables are
significant in explaining the corporate sector LD. Industries appear to
partially match the currency composition of their debt with their income
streams. Devaluations are found to be contractionary, in terms of
investments and profits, for sectors with higher LD. Macroeconomic
instability affects the performance of the industries negatively. Our
results also stress the importance of strong macroeconomic policy stance
for an endogenous dedollarization process.
Journal: Applied Economics
Pages: 4741-4747
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498353
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4741-4747
Template-Type: ReDIF-Article 1.0
Author-Name: Brenda Gannon
Author-X-Name-First: Brenda
Author-X-Name-Last: Gannon
Author-Name: Jennifer Roberts
Author-X-Name-First: Jennifer
Author-X-Name-Last: Roberts
Title: Part-time work and health among older workers in Ireland and Britain
Abstract:
Part-Time (PT) work is viewed as a viable option for people who wish to
have a gradual transition to retirement. From a policy viewpoint, this may
help to alleviate some labour supply shortages and fiscal pressures,
especially in the context of the ageing population. Factors such as health
or pension provision may influence a person's decision to work PT. This
article considers the impact of health on the work decision of people aged
50 and over in the UK and Ireland. Methodological issues are discussed and
the impact of unobserved individual effects is estimated using the Mundlak
(1978) estimator applied to the multinomial probit model. We find that
health problems increase the probability of retirement for this age group
in both countries. In Britain, those with health problems are less likely
to work full time and more likely to work PT, however in Ireland, health
problems appear to have no effect on the probability of PT work. This
article discusses the potential reasons for these impacts and current
policies on PT work.
Journal: Applied Economics
Pages: 4749-4757
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498354
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4749-4757
Template-Type: ReDIF-Article 1.0
Author-Name: Ram Acharya
Author-X-Name-First: Ram
Author-X-Name-Last: Acharya
Author-Name: Henry Kinnucan
Author-X-Name-First: Henry
Author-X-Name-Last: Kinnucan
Author-Name: Steven Caudill
Author-X-Name-First: Steven
Author-X-Name-Last: Caudill
Title: Asymmetric farm-retail price transmission and market power: a new test
Abstract:
A finite mixture model is used to estimate farm-retail price transmission
in the US fresh strawberry market. Results suggest two distinct pricing
regimes associated with off- and peak-harvesting seasons. The market power
parameter is significant in the peak-harvest regime, but not in the
off-peak regime. Moreover, price changes are transmitted completely
throughout the marketing channel in the off-peak regime when the market
power parameter is zero, but not in the peak-harvest regime when the
market power parameter is positive. This suggests that produce buyers are
more apt to exercise market power when farm supplies are abundant than
when they are scarce, and that the exercise of such power causes the
farm-retail price linkage to become asymmetric.
Journal: Applied Economics
Pages: 4759-4768
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498355
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498355
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4759-4768
Template-Type: ReDIF-Article 1.0
Author-Name: Laure Turner
Author-X-Name-First: Laure
Author-X-Name-Last: Turner
Author-Name: Herve Boulhol
Author-X-Name-First: Herve
Author-X-Name-Last: Boulhol
Title: Recent trends and structural breaks in the US and EU15 labour productivity growth
Abstract:
This article examines shifts in labour productivity growth in the US and
in Europe between 1970 and 2007 based on econometric tests of structural
breaks. Additionally, it makes use of time-series-based projections of
labour productivity growth up to 2009 in order to detect breaks depending
on confidence intervals of the projections. The identification of
structural breaks in the US labour productivity growth is far from
obvious. A statistically significant break is found in the late 1990s only
if at least the 97.5th percentile of forecasts materializes in the future,
which means that despite a clear pick up in productivity growth in the
second half of the 1990s, the size of the hump is not large enough
compared with past variations to make this change a statistically
significant break. However, a significant break point is detected in the
mid-1990s for the difference in labour productivity growth between the US
and the EU15, even when controlling for the convergence of Europe towards
the US productivity levels that has contributed to higher European
performance in the early catch up phase. Finally, within Europe, the
accumulation of Information and Communication Technology (ICT) capital
seems to be related to differences in the shifts in structural labour
productivity growth across countries.
Journal: Applied Economics
Pages: 4769-4784
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498356
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498356
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4769-4784
Template-Type: ReDIF-Article 1.0
Author-Name: Moonsoo Park
Author-X-Name-First: Moonsoo
Author-X-Name-Last: Park
Author-Name: Yanhong Jin
Author-X-Name-First: Yanhong
Author-X-Name-Last: Jin
Author-Name: Alan Love
Author-X-Name-First: Alan
Author-X-Name-Last: Love
Title: Dynamic and contemporaneous causality in a supply chain: an application of the US beef industry
Abstract:
Causal relationships are used to investigate information flows and
directions of control in a decentralized multi-echelon supply chain where
no central authority has system level control over optimizing decisions.
We use secondary time-series data representing the US beef industry to
investigate dynamic and contemporaneous causality based on out-of-sample
Granger causality and Direct Acyclic Graphs (DAGs). Results indicate: (i)
the US beef supply chain experienced a significant structural change in
late 1996 and early 1997 that may be attributed to a weather induced
production shock and an apparent turnaround of the cattle cycle; (ii)
contemporaneous causalities appear to be stronger and dynamic causalities
appear to be weaker after the structural change, suggesting faster and
more effective information transmission along the supply chain after the
structural change; (iii) contemporaneous information appears to flow from
upstream to downstream tiers in the supply chain before the structural
break, which reverses after the structural break, suggesting a shift in
control from upstream to downstream firms; and (iv) co-use of spot market
and contracts to procure strategic inputs by processors appears to allow
processors some control of spot price through contract purchases in the
post-break period. Our approach could be readily used to investigate other
multi-echelon systems.
Journal: Applied Economics
Pages: 4785-4801
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498357
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498357
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4785-4801
Template-Type: ReDIF-Article 1.0
Author-Name: Firat Inceoglu
Author-X-Name-First: Firat
Author-X-Name-Last: Inceoglu
Author-Name: Minsoo Park
Author-X-Name-First: Minsoo
Author-X-Name-Last: Park
Title: Diffusion of a new product under network effects: the US DVD market
Abstract:
We formulate a model that captures the inter-dependence between hardware
demand and software supply - indirect network effect - in the DVD
industry. The identification of the network effect comes from the
difference in software availability across two different formats: VHS and
DVD. We find that a 1% increase in the number of DVD titles raises the
demand for DVD players by 0.87%. Simultaneously, a 1% increase in video
player ownership leads to a 0.14% increase in the variety of video titles.
Our simulations show that hardware manufacturers might be able to
internalize the network externality to increase total industry revenues.
Journal: Applied Economics
Pages: 4803-4815
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498358
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498358
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4803-4815
Template-Type: ReDIF-Article 1.0
Author-Name: J. Scott Shonkwiler
Author-X-Name-First: J. Scott
Author-X-Name-Last: Shonkwiler
Author-Name: David Grigorian
Author-X-Name-First: David
Author-X-Name-Last: Grigorian
Author-Name: Tigran Melkonyan
Author-X-Name-First: Tigran
Author-X-Name-Last: Melkonyan
Title: Controlling for the underreporting of remittances
Abstract:
Empirical studies that use self-reported data on remittances to measure
the latter's impact on microeconomic incentives mostly ignore the
potential errors associated with reporting/measurement issues. An
econometric procedure to control for these errors is developed and applied
to household level data from Armenia. We find evidence of systematic
underreporting of remittances. After controlling for this, we find a
strong negative impact of remittances on incentives to work.
Journal: Applied Economics
Pages: 4817-4826
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498359
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498359
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4817-4826
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey Cohen
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Cohen
Author-Name: Catherine Morrison Paul
Author-X-Name-First: Catherine Morrison
Author-X-Name-Last: Paul
Title: Scale and scope economies for drug abuse treatment costs: evidence for Washington State
Abstract:
Drug abuse treatment has been pervasive in the US in the recent years,
and the associated direct treatment costs approached $18 billion in 2001.
However, there have been few published studies on scale economies, and
none on scope economies, for drug abuse treatment costs. We estimate a
restricted cost function for 17 hospitals in Washington State that
provided inpatient and/or outpatient drug abuse treatment during the years
1997-2004. We find significant evidence of scale economies for hospitals
that provide only outpatient drug abuse treatment services. The marginal
costs of outpatient services are even smaller for hospitals that produce
both outpatient and inpatient drug abuse treatment services. Further,
these joint-production hospitals exhibit diseconomies of scope, or
specialization economies. These results all imply that recent trends
towards additional outpatient treatment services will enhance cost
efficiency.
Journal: Applied Economics
Pages: 4827-4834
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498360
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498360
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4827-4834
Template-Type: ReDIF-Article 1.0
Author-Name: P. Siminski
Author-X-Name-First: P.
Author-X-Name-Last: Siminski
Title: The price elasticity of demand for pharmaceuticals amongst high-income older Australians: a natural experiment
Abstract:
Most high-income older Australians became eligible for a pharmaceutical
concession through a 1999 policy change. I exploit this natural experiment
to estimate their price elasticity of demand for pharmaceuticals. The
preferred model is a nonlinear Instrumental Variable (IV) regression,
estimated on nationally representative repeated cross-sectional survey
data using the Generalized Method of Moments (GMM). No significant
evidence is found for endogenous take-up, and so cross-sectional estimates
are also considered. Taking all of the results into account, the
'headline' estimate is -0.1, implying that quantity demanded is not highly
responsive to price.
Journal: Applied Economics
Pages: 4835-4846
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498361
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4835-4846
Template-Type: ReDIF-Article 1.0
Author-Name: Y. Biondi
Author-X-Name-First: Y.
Author-X-Name-Last: Biondi
Title: Cost of capital, discounting and relational contracting: endogenous optimal return and duration for joint investment projects
Abstract:
Concession, project financing and public-private partnership schemes are
investment projects that are generally submitted to valuation criteria
based on discounted cash flow analysis. The theoretical basis of these
valuation criteria are now at issue. Pursuant to recent advances in
relational contracting economics and behavioural finance, joint investment
projects can be considered as special relational environments where the
project's returns improve on alternative replacement opportunities. This
article seeks to bridge the gap between new theories and widely used
valuation techniques by providing a generalized approach to investment
valuation. This article suggests reasonable valuation criteria that fit
these new theoretical developments, including an endogenous optimal
duration function that may be integrated into the project's contractual
agreement.
Journal: Applied Economics
Pages: 4847-4864
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498362
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498362
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4847-4864
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Ziesemer
Author-X-Name-First: Thomas
Author-X-Name-Last: Ziesemer
Title: Growth with endogenous migration hump and the multiple, dynamically interacting effects of aid in poor developing countries
Abstract:
We show empirically that aid given to poor developing countries enhances
growth and reduces emigration, once several dynamically interacting
effects of aid are taken into account in a system of equations. We
estimate equations for net immigration flows as a share of the labour
force and Gross Domestic Product Per Capita (GDPPC) growth and also for
all their regressors including remittances and official development aid.
We use dynamic panel data methods for a sample of poor countries with
GDPPC below $1200 (2000), for which aid is about 9.5% of GDP. The partial
effects in these regressions are working against each other. Therefore, we
integrate all equations into a dynamic system and run a simulation. One
result is an endogenous migration hump with several peaks. In a
counterfactual simulation, we double aid with the consequence that for
more than a 100 years migration is reduced and the GDPPC is enhanced,
because the positive effects of aid on investment and education dominate
the negative direct effects of aid on growth and the unfavourable effects
on savings, tax revenues and labour force growth.
Journal: Applied Economics
Pages: 4865-4878
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498363
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498363
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4865-4878
Template-Type: ReDIF-Article 1.0
Author-Name: Joon-Ho Hahm
Author-X-Name-First: Joon-Ho
Author-X-Name-Last: Hahm
Author-Name: Sangche Lee
Author-X-Name-First: Sangche
Author-X-Name-Last: Lee
Title: Economic effects of positive credit information sharing: the case of Korea
Abstract:
In many countries, in addition to negative credit information such as
loan default and arrears, positive credit information is also exchanged on
a voluntary and reciprocal basis. Employing optimal credit decision models
of profit maximizing banks, and utilizing a unique dataset of 2 million
consumer loan obligors in Korea, we investigate the economic effects of
sharing positive credit information in addition to negative credit
information already exchanged. We find that the discriminatory power of
the credit scoring model improves significantly. We proceed to investigate
the economic effects of the information gap in a competitive credit market
by assuming two representative banks that differ only in the level of
credit information sharing. The bank that utilizes negative information
only suffers from deterioration of the borrower pool and reduced profit,
as high credit risk borrowers are more concentrated on this bank due to
underpricing of risks. Our finding suggests that banks have incentives to
voluntarily participate in the positive information sharing mechanism,
since even a small difference in discriminatory power stemming from the
information gap may lead to a significant fall in profitability as the
distribution of borrower quality changes endogenously due to adverse
selection problems.
Journal: Applied Economics
Pages: 4879-4890
Issue: 30
Volume: 43
Year: 2011
X-DOI: 10.1080/00036846.2010.498364
File-URL: http://www.tandfonline.com/doi/abs/10.1080/00036846.2010.498364
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Handle: RePEc:taf:applec:v:43:y:2011:i:30:p:4879-4890
Template-Type: ReDIF-Article 1.0
Author-Name: Dominique M. Gross
Author-X-Name-First: Dominique M.
Author-X-Name-Last: Gross
Author-Name: Nicolas Schmitt
Author-X-Name-First: Nicolas
Author-X-Name-Last: Schmitt
Title: Low- and high-skill migration flows: free mobility versus other determinants
Abstract:
We investigate what economic factors drive international migration of
workers to France and how their influence varies across different skill
levels under restrictive policies and through time as free mobility is
implemented. We find that neither incentives nor policy parameters are
similar across skill levels. Migration drivers such as a network of
compatriots and relative incomes influence the movement of low-skill
workers. High-skill individuals however move only according to financial
opportunities be they standard of living or returns to skill within a
class. We conclude that competition for high-skill workers among
Organization for Economic Co-operation and Development (OECD) countries
requires more than free mobility to successfully attract high-skill
migrants even for a developed country such as France.
Journal: Applied Economics
Pages: 1-20
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.498365
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498365
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:1-20
Template-Type: ReDIF-Article 1.0
Author-Name: Olena Stavrunova
Author-X-Name-First: Olena
Author-X-Name-Last: Stavrunova
Author-Name: Oleg Yerokhin
Author-X-Name-First: Oleg
Author-X-Name-Last: Yerokhin
Title: Two-part fractional regression model for the demand for risky assets†
Abstract:
Empirical studies of household portfolio choices are often interested in
quantifying the effects of various covariates on the fraction of a
household's wealth invested in risky assets such as common stocks. The
preferred econometric specification in these studies is the two-limit
Tobit model, which can accommodate the fractional nature of the dependent
variable. However, it is restrictive, because it assumes that the same
data generating process determines both whether households participate in
the stock market and the fraction of wealth invested in stocks. This
article demonstrates that, in this setting, a two-part version of the
fractional response model of Papke and Wooldridge (1996) constitutes an
attractive alternative to Tobit by comparing the performance of the two
models using data on portfolio choices of Australian households. We find
that (1) the Tobit model is rejected by our data in favour of a two-part
specification; and (2) marginal effects of covariates on the share of
risky assets conditional on participation estimated from Tobit are
confounded by the effects of these covariates on the participation
decision.
Journal: Applied Economics
Pages: 21-26
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.498366
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498366
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:21-26
Template-Type: ReDIF-Article 1.0
Author-Name: Anindita Chakrabarti
Author-X-Name-First: Anindita
Author-X-Name-Last: Chakrabarti
Title: Determinants of child morbidity and factors governing utilization of child health care: evidence from rural India
Abstract:
Prevention as well as effective treatment of respiratory infections and
diarrhoea depends on several individual, household and community level
factors. The objective of this article is to estimate the role played by
such factors in determining the occurrence of such diseases and
utilization of formal health care for children under the age of three in
India. The major findings are briefly enlisted as follows. First, a woman
with greater educational qualification and autonomy in terms of her power
to take decisions on her own, control over household resources and
complete freedom to move beyond the confines of her household exerts a
significant influence on the probability of seeking care. In addition to
this, formal care is more likely to be sought for children whose mothers
are more exposed to the media. Programmes devised to enhance utilization
of formal health care for children should be targeted to catering for the
needs of the vulnerable group i.e. female child, predominantly, residing
in households belonging to Scheduled Tribe. In addition to this, children
belonging to Muslim households are at higher risk of contracting the
diseases but there is no significant difference in their health seeking
behaviour as compared to other religious groups.
Journal: Applied Economics
Pages: 27-37
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.498367
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498367
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:27-37
Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Färe
Author-X-Name-First: Rolf
Author-X-Name-Last: Färe
Author-Name: Shawna Grosskopf
Author-X-Name-First: Shawna
Author-X-Name-Last: Grosskopf
Author-Name: Carl A. Pasurka
Author-X-Name-First: Carl A.
Author-X-Name-Last: Pasurka
Author-Name: William L. Weber
Author-X-Name-First: William L.
Author-X-Name-Last: Weber
Title: Substitutability among undesirable outputs
Abstract:
In recent years, economists have started to move beyond calculating
regulatory effects on a pollutant-by-pollutant basis since their
interaction is important. In this study, we take up this issue. To allow
for joint production of multiple pollutants and marketable output, we
specify our technology using a directional distance function. This allows
us to treat pollutants as joint outputs, yet accounts for their
‘undesirability’. We estimate the distance function for a
sample of coal-fired electric power plants from 1985 to 1998, which
includes the first 4 years of Phase I of the Clean Air Act Amendments of
1990. We focus on the interaction between SO2 and NO
x , as they became more highly regulated and estimate
shadow prices of the pollutants and the Morishima elasticity of
transformation between two pollutants, NO x
and SO2, as well as with respect to the desirable output,
kilowatt-hours of electricity. As expected, we find that power plants
increase NO x emissions as they decrease
SO2, i.e. they are substitutes.
Journal: Applied Economics
Pages: 39-47
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.498368
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498368
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:39-47
Template-Type: ReDIF-Article 1.0
Author-Name: Horst Feldmann
Author-X-Name-First: Horst
Author-X-Name-Last: Feldmann
Title: Inflation volatility and unemployment in industrial countries
Abstract:
Using annual data on 20 industrial countries over the period from 1972 to
2003, this article analyses the impact of inflation volatility on
unemployment. It finds that higher volatility over the previous 10 years
is associated with a higher unemployment rate in the current year. The
effect appears to be small in the short run and medium sized in the long
run. The results are robust to variations in specification and sample
size. The magnitude of the effect is not smaller if the sample is limited
to the more recent sub-period of comparatively low inflation volatility.
Journal: Applied Economics
Pages: 49-64
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.498369
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498369
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:49-64
Template-Type: ReDIF-Article 1.0
Author-Name: Sharmistha Self
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Self
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Title: Opportunities for women and Islam: variations upon variations
Abstract:
Religion has long been thought to be an important institution influencing
economic development. More recently, it has also been argued that religion
influences economic and social opportunities for women, specifically, that
Islam limits women's opportunities. A revisionist view has countered with
the argument that once one accounts for oil rents and/or fertility, then
much of the negative effect disappears. In addition, it has been argued
that the impact of Islam varies greatly from region to region. The
empirical results from this article indicate that indeed once an account
is taken of the impact of fertility, much, but not all, of the negative
impact of Islam on relative female performance disappears. In addition,
the impact of Islam on relative female performance does vary greatly from
region to region. Finally, the inclusion of a variable measuring oil rents
does not seem to substantially influence the results.
Journal: Applied Economics
Pages: 65-79
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.498370
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498370
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:65-79
Template-Type: ReDIF-Article 1.0
Author-Name: Lionel Page
Author-X-Name-First: Lionel
Author-X-Name-Last: Page
Title: ‘It ain’t over till it's over.’ Yogi Berra bias on prediction markets
Abstract:
The recent expansion of prediction markets provides a great opportunity
to test the market efficiency hypothesis and the calibration of trader
judgements. Using a large database of observed prices, this article
studies the calibration of prediction markets prices on sporting events
using both nonparametric and parametric methods. While only minor bias can
be observed during most of the lifetime of the contracts, the calibration
of prices deteriorates very significantly in the last moments of the
contracts’ lives. Traders tend to overestimate the probability of
the losing team to reverse the situation in the last minutes of the game.
Journal: Applied Economics
Pages: 81-92
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.498578
File-URL: http://hdl.handle.net/10.1080/00036846.2010.498578
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:81-92
Template-Type: ReDIF-Article 1.0
Author-Name: Maryam H’madoun
Author-X-Name-First: Maryam
Author-X-Name-Last: H’madoun
Author-Name: Walter Nonneman
Author-X-Name-First: Walter
Author-X-Name-Last: Nonneman
Title: Explaining differences in job retention between alien and nonalien workers after an in-company training
Abstract:
This study focuses on the job retention of unemployed workers, after they
attended a subsidized in company training programme in Flanders. Using a
new large scale dataset of the Flemish Labour Exchange, we look for
differences in the probability of employment between aliens and nonaliens
during the 36 months following their on the job training. We further
investigate whether differences persist after controlling for several
socio-economic characteristics and labour market related variables.
Estimating a modified probit model we find that, on average, being an
alien lowers the probability of employment after training by approximately
15%. This effect reduces to 10% when controlling for other variables. The
effect of education on a trainee's employment chances differs for aliens
and nonaliens. Aliens have a markedly lower return on investment in
education. Good language skills and a longer in company training period
also increase employment probability, but more so for aliens. Other
control variables do not significantly improve the explanatory power of
the model. The main conclusion is that even after a tailored on the job
training, aliens still lag behind nonaliens in terms of employment
success.
Journal: Applied Economics
Pages: 93-103
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500271
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500271
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:93-103
Template-Type: ReDIF-Article 1.0
Author-Name: Ellen K. Nyhus
Author-X-Name-First: Ellen K.
Author-X-Name-Last: Nyhus
Author-Name: Empar Pons
Author-X-Name-First: Empar
Author-X-Name-Last: Pons
Title: Personality and the gender wage gap
Abstract:
In this study, we investigate whether personality traits contribute
towards a better understanding of the reasons for the gender wage gap. We
explore whether two of the personality factors put forward by Bowles
et al. (2001) as likely to be incentive enhancing in
the employer--employee relationship can explain the difference in wages
for women and men. These are (1) personal self efficacy (Locus of Control
(LoC)) and (2) time preference. We also study the role of the so called
Big Five personality traits (extraversion, emotional
stability, agreeableness, openness intellect and conscientiousness), which
have been associated with earnings in several recent studies. Using a
sample of Dutch employees, we found that 11.5% of the observed gender wage
gap could be ascribed to differences in the personality trait scores
(mainly in agreeableness and intellect), while less than 0.5% could be
ascribed to gender differences in the returns to the traits. The addition
of personality traits to a traditional human capital model reduces the
unexplained part of the gender wage gap from 75.2% to 62.7%. We therefore
conclude that these traits represent a valuable addition to the model.
Journal: Applied Economics
Pages: 105-118
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500272
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500272
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:105-118
Template-Type: ReDIF-Article 1.0
Author-Name: Nalan Baştürk
Author-X-Name-First: Nalan
Author-X-Name-Last: Baştürk
Author-Name: Richard Paap
Author-X-Name-First: Richard
Author-X-Name-Last: Paap
Author-Name: Dick van Dijk
Author-X-Name-First: Dick
Author-X-Name-Last: van Dijk
Title: Structural differences in economic growth: an endogenous clustering approach
Abstract:
This article addresses heterogeneity in determinants of economic growth
in a data-driven way. Instead of defining groups of countries with
different growth characteristics a priori, based on, for
example, geographical location, we use a finite mixture panel model and
endogenous clustering to examine cross-country differences and
similarities in the effects of growth determinants. Applying this approach
to an annual unbalanced panel of 59 countries in Asia, Latin and Middle
America and Africa for the period 1971--2000, we can identify two groups
of countries in terms of distinct growth structures. The structural
differences between the country groups mainly stem from different effects
of investment, openness measures and government share in the economy.
Furthermore, the detected segmentation of countries does not match with
conventional classifications in the literature.
Journal: Applied Economics
Pages: 119-134
Issue: 1
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500274
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500274
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Handle: RePEc:taf:applec:44:y:2012:i:1:p:119-134
Template-Type: ReDIF-Article 1.0
Author-Name: Luis E. Arango
Author-X-Name-First: Luis E.
Author-X-Name-Last: Arango
Author-Name: Fernando Arias
Author-X-Name-First: Fernando
Author-X-Name-Last: Arias
Author-Name: Adriana Flórez
Author-X-Name-First: Adriana
Author-X-Name-Last: Flórez
Title: Determinants of commodity prices
Abstract:
A panel of annual information between 1960 and 2006 for approximately 50
different commodity prices and some other variables and sources is used to
tests the determinants of commodity prices. According to the evidence,
interest rates seem to maintain a negative relationship with commodity
prices.
Journal: Applied Economics
Pages: 135-145
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500273
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500273
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:135-145
Template-Type: ReDIF-Article 1.0
Author-Name: Jos頃uesta
Author-X-Name-First: Jos頍
Author-X-Name-Last: Cuesta
Author-Name: Camilo Bohórquez
Author-X-Name-First: Camilo
Author-X-Name-Last: Bohórquez
Title: Soccer and national culture: estimating the impact of violence on 22 lads after a ball
Abstract:
Sports have been recently conceptualized as an effective tool for
development. Questioning that argument, recent evidence suggests that the
practice of soccer reveals national cultures of violence prevailing in
players’ countries of origin. We model violent behaviour in the
soccer pitch as a function of game specific controls as well as
socioeconomic, political, cultural and conflict variables characterizing
players’ home countries. We construct a database for the Latin
American 2008 Libertadores Cup Competition and find that
across multiple specifications and estimating techniques, only game
specific variables determine sanctions to violent actions. There are three
compatible explanations for this result: highly skilled soccer players may
not be representative average citizens; violent conflicts may not
necessarily cause a violent culture affecting all corners of society; and
even when violent cultures are transmitted to individual players, those
values do not condition significantly their behaviour during games. After
all, sports may not be a pernicious activity that intrinsically transmits
violent values to youths.
Journal: Applied Economics
Pages: 147-161
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500275
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500275
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:147-161
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Stephan Popp
Author-X-Name-First: Stephan
Author-X-Name-Last: Popp
Title: A nonlinear approach to testing the unit root null hypothesis: an application to international health expenditures
Abstract:
In this article, we examine the unit root null hypothesis for per capita
total Health Expenditures (HEs), per capita private HEs and per capita
public HEs for 29 Organization for Economic Co-operation and Development
(OECD) countries. The novelty of our work is that we use a new nonlinear
unit root test that allows for one structural break in the data series. We
find that for around 45% of the countries, we are able to reject the unit
root hypothesis for each of the three HE series. Moreover, using Monte
Carlo simulations, we show that our proposed unit root model has better
size and power properties than the widely used Augmented Dickey--Fuller
(ADF) and Lagrange Multiplier (LM) type tests.
Journal: Applied Economics
Pages: 163-175
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500276
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500276
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:163-175
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Bowles
Author-X-Name-First: Roger
Author-X-Name-Last: Bowles
Author-Name: Chrisostomos Florackis
Author-X-Name-First: Chrisostomos
Author-X-Name-Last: Florackis
Title: Impatience, reputation and offending
Abstract:
Reconviction rates for offenders are high despite sentence severity
increasing with the number of convictions. The standard one-shot model of
crime provides little scope for exploring ‘persistence
effects’, although recent papers by Emons and others have sought to
put offending decisions into a more dynamic setting. This article develops
a simple two-period model of offending in which criminal convictions act
as an adverse signal in labour markets. Ordinary and multinomial logistic
regression modelling is used to test the predictions of the theoritical
model and explore the link between unemployment and convictions. The
empirical results, which are based on longitudinal data from the National
Child Development Study (NCDS) in the UK, strongly support the view that,
ceteris paribus, individuals with previous convictions
are at higher risk of being unemployed.
Journal: Applied Economics
Pages: 177-187
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500277
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500277
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:177-187
Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Dong Lee
Author-X-Name-First: Ki-Dong
Author-X-Name-Last: Lee
Author-Name: Seok-Joon Hwang
Author-X-Name-First: Seok-Joon
Author-X-Name-Last: Hwang
Author-Name: Min-hwan Lee
Author-X-Name-First: Min-hwan
Author-X-Name-Last: Lee
Title: Agglomeration economies and location choice of Korean manufacturers within the United States
Abstract:
Employing the micro data for 1997--2004, we investigate the location
decision of Korean-affiliated manufacturing investments in the United
States. The conditional logit estimates confirm that although
industry-specific Korean agglomeration and domestic agglomeration play an
important role, the Foreign Direct Investment (FDI) location is more
sensitively affected by the interstate difference in endowment conditions
than by the same nationality agglomeration. Both business service and
intermediate good agglomeration are main determinants of FDI location.
Furthermore, estimation results show substantial change in the location
pattern after recovery from the Asian financial crisis. We find quite
different patterns of location decision across industry groups; dispersion
forces work greater than the agglomeration force in the consumer goods
industry, forward linkages with US upstream firms can be seen in the
assembly and processing industry, and typical follow-the-leader pattern
mixed with market potential effect by Korean immigrants is seen in the
basic material manufacturing industry.
Journal: Applied Economics
Pages: 189-200
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502109
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502109
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:189-200
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Kalb
Author-X-Name-First: Alexander
Author-X-Name-Last: Kalb
Author-Name: Benny Geys
Author-X-Name-First: Benny
Author-X-Name-Last: Geys
Author-Name: Friedrich Heinemann
Author-X-Name-First: Friedrich
Author-X-Name-Last: Heinemann
Title: Value for money? German local government efficiency in a comparative perspective
Abstract:
In this article, we investigate the cost efficiency of German local
governments in the state of Baden-Württemberg in 2004 using a
stochastic frontier approach. Besides being the first study on German
data, we add two elements to the literature. First, we provide a
comparative perspective, allowing us to embed our results in the broader
literature. Second, unlike most previous studies, we explicitly account
for exogenous or nondiscretionary influences when estimating municipal
efficiency scores. The results suggest that disregarding such exogenous
factors can lead to significant and systematic bias in the estimated
inefficiency levels. Particularly, underestimation of efficiency occurs
for municipalities with high tourist activity, while the reverse is true
for municipalities with high unemployment.
Journal: Applied Economics
Pages: 201-218
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502110
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502110
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:201-218
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Author-Name: Scott Goates
Author-X-Name-First: Scott
Author-X-Name-Last: Goates
Author-Name: Laura Hill
Author-X-Name-First: Laura
Author-X-Name-Last: Hill
Title: Participation in universal prevention programmes
Abstract:
We analyse family decisions to participate in community-based universal
substance-abuse prevention programmes through the framework of expected
utility theory. Family functioning, which has been shown to be a good
indicator of child risk for substance abuse, provides a useful reference
point for family decision making. Our results show that well-functioning
families (with children at low risk for substance use) should have the
lowest incentive to participate, but that high-risk families may also opt
out of prevention programmes. For programmes that are most effective for
high-risk youth, this could be a problem. Using data from the
Strengthening Families Programme (SFP) and the Washington Healthy Youth
Survey (HYS), we empirically test the implications of our model and find
that at least for one measure of family functioning those families with
children most likely to be at risk for substance use are opting out of the
programme.
Journal: Applied Economics
Pages: 219-228
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502111
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502111
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:219-228
Template-Type: ReDIF-Article 1.0
Author-Name: Bernhard Michel
Author-X-Name-First: Bernhard
Author-X-Name-Last: Michel
Author-Name: François Rycx
Author-X-Name-First: François
Author-X-Name-Last: Rycx
Title: Does offshoring of materials and business services affect employment? Evidence from a small open economy
Abstract:
The fear of massive job losses has prompted a fast-growing literature on
offshoring and its impact on employment in advanced economies. This
article examines the situation for Belgium. It improves the offshoring
intensity measure by computing a volume measure of the share of imported
intermediates in output, and it is among the first to address both
materials and business services offshoring to high wage and low wage
countries. Estimations of static and dynamic industry-level labour demand
equations augmented by offshoring intensities do not reveal a significant
impact of either materials or business services offshoring on total
employment for Belgium between 1995 and 2003. This result holds for both
the manufacturing sector and the service sector and it proves robust to
splitting the manufacturing sector into high technology and low technology
industries.
Journal: Applied Economics
Pages: 229-251
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.503932
File-URL: http://hdl.handle.net/10.1080/00036846.2010.503932
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:229-251
Template-Type: ReDIF-Article 1.0
Author-Name: Antonios Georgopoulos
Author-X-Name-First: Antonios
Author-X-Name-Last: Georgopoulos
Author-Name: Kostas Karamanis
Author-X-Name-First: Kostas
Author-X-Name-Last: Karamanis
Title: The implications of the liberalization in telecommunication markets for market structure and price policy: evidence from a small open economy
Abstract:
This study analyses the impact of liberalization on market structure and
pricing in the Greek telecommunication market from 1992 to 2005. The data
refers to 44 of the most prominent companies of fixed telephony, mobile
telephony and internet services and was compiled by means of interviews
with the help of a questionnaire. Our descriptive analysis concluded that
liberalization of the telecommunication market reduced its concentration
degree, increased competition and induced price cuts. This conclusion is
supported by other research studies concerning other countries of the EU,
since Greece as an EU member country has also implemented the respective
European policy in the specific industry. As far as the econometric level
is concerned, we used panel Feasible Generalized Least Squares (FGLS).
FGLS is an appropriate tool for samples such as our own, composed by
intersectoral data that extend to more than one time periods, and without
correlation between the unobserved effects and the interpretative
variables. Our econometric research showed that both private ownership and
specialized personnel in the commercial and technical sector seem to
positively influence the companies’ market share. In turn, a large
market share offers companies more freedom to cut down prices in their
services. However, there is still considerable need for econometric
research in this field.
Journal: Applied Economics
Pages: 253-263
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.505556
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505556
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Handle: RePEc:taf:applec:44:y:2012:i:2:p:253-263
Template-Type: ReDIF-Article 1.0
Author-Name: Mauricio Jara-Bertin
Author-X-Name-First: Mauricio
Author-X-Name-Last: Jara-Bertin
Author-Name: F鬩x J. López-Iturriaga
Author-X-Name-First: F鬩x J.
Author-X-Name-Last: López-Iturriaga
Author-Name: Óscar López-de-Foronda
Author-X-Name-First: Óscar
Author-X-Name-Last: López-de-Foronda
Title: Does the influence of institutional investors depend on the institutional framework? An international analysis
Abstract:
This article analyses the effect of institutional ownership in
alleviating or exacerbating the conflicts of interests among stakeholders
in different legal and institutional frameworks. This analysis is carried
out based on two characteristics: the concentration of power of
institutional ownership and the identification of the main types of
institutional investors. In common law countries, consistent with the
convergence and entrenchment hypotheses, we find a U-shape relation
between ownership structure and firm performance. In civil law countries,
consistent with the collusion and contest theories, we find an inverted
U-shape relation. We also find that when institutional investors are
classified as pressure resistant and pressure sensitive according to the
strength of their ties with managers, pressure-resistant investors, who
operate more independently, are the most capable of improving the value of
the firm.
Journal: Applied Economics
Pages: 265-278
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502112
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502112
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:265-278
Template-Type: ReDIF-Article 1.0
Author-Name: Gerhard Riener
Author-X-Name-First: Gerhard
Author-X-Name-Last: Riener
Title: Inequality and mobility of household incomes in Europe: evidence from the ECHP
Abstract:
In this article we want to shed light on two aspects of income mobility:
relative total income mobility using the estimator by Fields and Ok (1999)
and equalization of long-run incomes measured by the index of Fields
(2009). The cross country comparison shows a negative relationship between
total relative mobility and long-run income equalization, this result is
contrary to the intuition given by Shorrocks (1978a) who stated that
higher relative mobility will cause higher equalization of incomes when
the accounting period is extended.
Journal: Applied Economics
Pages: 279-288
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.505555
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505555
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:279-288
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy J. Halliday
Author-X-Name-First: Timothy J.
Author-X-Name-Last: Halliday
Author-Name: Sally Kwak
Author-X-Name-First: Sally
Author-X-Name-Last: Kwak
Title: What is a peer? The role of network definitions in estimation of endogenous peer effects
Abstract:
We employ a standard identification strategy from the peer effects
literature to investigate the importance of network definitions in
estimation of endogenous peer effects. We use detailed information on
friends in the National Longitudinal Study of Adolescent Health Survey
(Add Health) to construct two network definitions that are less ad
hoc than the school-grade cohorts commonly used in the
educational peer effects literature. We demonstrate that accurate
definitions of the network seriously impact estimation of peer effects. In
particular, we show that peer effects estimates on educational
achievement, smoking and drinking are substantially larger with our more
detailed measures than with the school-grade cohorts. These results
highlight the need to further understand how friendships form in order to
fully understand implications for policy that alters the peer group mix at
the classroom or cohort level.
Journal: Applied Economics
Pages: 289-302
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.505557
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505557
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:289-302
Template-Type: ReDIF-Article 1.0
Author-Name: B. James Deaton
Author-X-Name-First: B. James
Author-X-Name-Last: Deaton
Author-Name: Ekaterina Niman
Author-X-Name-First: Ekaterina
Author-X-Name-Last: Niman
Title: An empirical examination of the relationship between mining employment and poverty in the Appalachian region
Abstract:
We empirically examine the relationship between the share of employment
in the mining sector and poverty rates in Appalachian counties of the
United States. Using panel data we decompose the effect of an increase in
a sector's employment share (i.e. mining, manufacturing, agriculture,
services and construction) to identify an immediate and lag effect. With
regard to the mining sector the empirical results suggest that the
immediate effect reduces poverty rates while the lag effect is associated
with increases in the poverty rate. We assess these results in the context
of previous literature that examines the relationship between resource
intensive economies and economic development.
Journal: Applied Economics
Pages: 303-312
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.505558
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505558
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:303-312
Template-Type: ReDIF-Article 1.0
Author-Name: S. Samarajeewa
Author-X-Name-First: S.
Author-X-Name-Last: Samarajeewa
Author-Name: G. Hailu
Author-X-Name-First: G.
Author-X-Name-Last: Hailu
Author-Name: S. R. Jeffrey
Author-X-Name-First: S. R.
Author-X-Name-Last: Jeffrey
Author-Name: M. Bredahl
Author-X-Name-First: M.
Author-X-Name-Last: Bredahl
Title: Analysis of production efficiency of beef cow/calf farms in Alberta
Abstract:
This article measures production efficiency across cow--calf farms in
Alberta, and examines the sources of variation in efficiency. Average
technical, allocative and economic efficiencies are, respectively, 83%,
78% and 67%. Biological efficiency (increased conception, calving and
weaning rates), larger herd size, higher share of family labour and
greater expense for bedding material reduce inefficiency. Inefficiency was
also related to receipt of government subsidies.
Journal: Applied Economics
Pages: 313-322
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.507173
File-URL: http://hdl.handle.net/10.1080/00036846.2010.507173
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:313-322
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Casacuberta
Author-X-Name-First: Carlos
Author-X-Name-Last: Casacuberta
Author-Name: N鳴or Gandelman
Author-X-Name-First: N鳴or
Author-X-Name-Last: Gandelman
Title: Multiple job holding: the artist's labour supply approach
Abstract:
This article analyses a labour supply model in which individuals maximize
a utility function that depends on leisure time, consumption and time
devoted to an activity that is termed ‘artistic’. This
activity may generate income that depends nonlinearly on hours dedicated
to it. The individual can also work in the labour market (an activity that
does not increase utility by itself) in exchange for an hourly wage, and
obtain income not related to hours. Conditions are obtained that sort
individuals into two groups, part-time and full-time artists, deriving
their labour supply functions in both activities. The predictions of the
model are tested empirically using a sample of musicians from a Uruguayan
performing rights society. Increases in outside wages drive part-time
artists out of the labour market, but no significant increase in arts
hours is detected. Higher nonlabour income also reduces nonarts work time
of part-time artists, but does not have a significant impact in their arts
hours. Conversely, arts hours of full-time artists increase with nonlabour
income.
Journal: Applied Economics
Pages: 323-337
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.508719
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508719
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:323-337
Template-Type: ReDIF-Article 1.0
Author-Name: Jacqueline Agesa
Author-X-Name-First: Jacqueline
Author-X-Name-Last: Agesa
Author-Name: Richard U. Agesa
Author-X-Name-First: Richard U.
Author-X-Name-Last: Agesa
Title: Imports, unionization and racial wage discrimination in the US
Abstract:
Past studies of the relationship between competition and racial wages
find that domestic competition reduces racial wage discrimination of
nonunion workers. This article examines the effects of foreign competition
on racial wages of union and nonunion workers utilizing an empirical model
which allows for cluster-adjusted SEs by industry. Such a procedure allows
independence of observations across industries but not within industries,
thereby not overstating the significance of industry invariant controls.
In this analysis, clustered SEs prevent the overstatement of the
significance of imports as a means to reduce earnings discrimination. We
find evidence of a wage premium for nonunion white workers in concentrated
industries; however, imports cause the wages of nonunion whites to
converge towards market rates. In contrast, for union workers in
concentrated industries, wage standardization provides a sanctuary from
market power initiated discrimination such that imports play a limited
role in reducing discrimination.
Journal: Applied Economics
Pages: 339-350
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.508720
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508720
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:339-350
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Coccorese
Author-X-Name-First: Paolo
Author-X-Name-Last: Coccorese
Title: Information sharing, market competition and antitrust intervention: a lesson from the Italian insurance sector
Abstract:
By means of an application of the Rosse--Panzar methodology, we assess
the degree of competition in the Italian car insurance market in order to
evaluate the considerable fine that is imposed on 39 companies by the
Italian Antitrust Authority (IAA) in 2000 for their supposed
anticompetitive behaviour due to a longstanding information exchange
through a third independent company. Our results show that this group of
firms has earned revenues as if under monopoly or collusive oligopoly
conditions, therefore endorsing the decision of IAA.
Journal: Applied Economics
Pages: 351-359
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.508721
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508721
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:351-359
Template-Type: ReDIF-Article 1.0
Author-Name: Wenyu Zang
Author-X-Name-First: Wenyu
Author-X-Name-Last: Zang
Author-Name: Mark Baimbridge
Author-X-Name-First: Mark
Author-X-Name-Last: Baimbridge
Title: Exports, imports and economic growth in South Korea and Japan: a tale of two economies
Abstract:
This article investigates the relationship between exports, imports and
economic growth for South Korea and Japan by constructing a Vector
Autoregression (VAR) model. Causality is examined between real Gross
Domestic Product (GDP), real exports and real imports. Several principal
results emerge from the empirical work. First, the three variables are
cointegrated for both countries, implying that a long run steady state
exists. Second, there is evidence of bidirectional causality between
imports and economic growth for both countries. Finally, Japan seems to
experience export-led growth, while GDP growth in South Korea has a
negative effect on export growth. These contrasting findings could result
from export goods in Japan exhibiting greater nonprice competitive
aspects, although their success fails to trigger a virtuous circle since
growth fails to lead to increased exports, while for South Korea, output
growth leads to a decrease in export growth suggesting a strong domestic
market.
Journal: Applied Economics
Pages: 361-372
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.508722
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508722
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:361-372
Template-Type: ReDIF-Article 1.0
Author-Name: Michael L. Marlow
Author-X-Name-First: Michael L.
Author-X-Name-Last: Marlow
Title: Effectiveness of Massachusetts’ comprehensive tobacco control program
Abstract:
While Massachusetts's comprehensive programme of excise taxes, smoking
bans and tobacco control has been argued to have significantly lowered
cigarette consumption, this is the first study to examine the
comprehensive nature of its programme and to control for factors other
than tobacco programmes themselves while examining effects on taxed
cigarette sales. Examination indicates strong support for the hypotheses
that taxed sales in Massachusetts declined due to price increases, changes
in income and smuggling. There is very limited support for the hypothesis
that tobacco control spending or smoking bans contributed to falling
cigarette sales. Possibilities are discussed that may explain why this
study does not support most previous studies. These include failure to
control for numerous factors that probably also influenced sales, that
effects of tobacco control programmes might differ between states and that
previous studies examined shorter time periods. It is hoped that this
article will foster further examination of these issues so that we can
better understand effectiveness of comprehensive tobacco control
programmes when formulating recommendations about how governments should
allocate their scarce resources towards such programmes.
Journal: Applied Economics
Pages: 373-385
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.508723
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508723
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:373-385
Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Banfi
Author-X-Name-First: Silvia
Author-X-Name-Last: Banfi
Author-Name: Massimo Filippini
Author-X-Name-First: Massimo
Author-X-Name-Last: Filippini
Author-Name: Andrea Horehájová
Author-X-Name-First: Andrea
Author-X-Name-Last: Horehájová
Title: Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog
Abstract:
Traffic noise, air pollution and electromagnetic pollution (i.e.
nonionizing radiation, also called electrosmog) are typical negative local
externalities in urban areas. They are side effects of human and economic
activities (e.g. road transport, telecommunication) and they affect
individuals’ well being negatively without compensation. In recent
years, the increased number of mobile phone antennas in residential areas,
and thus the increased intensity of radiated power, has aroused public
concern, discussions and protests. The view of an antenna is annoying an
increasing number of inhabitants. In this article, the stated Choice
Experiment (CE) is used to estimate the Willingness To Pay (WTP) residents
in the cities of Zurich and Lugano place on the reduction of these three
environmental loads. Estimation results reveal that there is a positive
and significant WTP for a reduction of air pollution and traffic noise
levels to those limit values fixed by the government. Respondents also
show WTP for reducing electrosmog and removing mobile phone antennas from
their view, however to a lesser extent. In addition, this is the first
study that estimates the benefit of a reduction of electrosmog using a CE.
Journal: Applied Economics
Pages: 387-397
Issue: 3
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.508724
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508724
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Handle: RePEc:taf:applec:44:y:2012:i:3:p:387-397
Template-Type: ReDIF-Article 1.0
Author-Name: Štefan Bojnec
Author-X-Name-First: Štefan
Author-X-Name-Last: Bojnec
Author-Name: Imre Fertő
Author-X-Name-First: Imre
Author-X-Name-Last: Fertő
Title: Complementarities of trade advantage and trade competitiveness measures
Abstract:
The complementarities of trade advantage and trade competitiveness
measures for agro food trade of five Central European (CE-5) countries
with the European Union are analysed. The stability and duration of the
trade measures over time is investigated by the survival analysis using
the nonparametric Kaplan--Meier product limit estimator, and the
consistency test between the trade measures is conducted by the stratified
Cox proportional hazard model. The CE-5 countries experienced a greater
number of products with relative trade disadvantages and greater
significance of one way imports. Unlike the Czech Republic, Poland,
Slovakia and Slovenia, Hungary experienced Relative Trade Advantages
(RTAs) for bulk raw commodities, processed intermediates and horticulture,
with the greatest significance of successful quality competition and
one-way exports, and the lowest significance of unsuccessful price and
unsuccessful quality competition. The duration of RTAs is longer than the
duration for the successful trade competition categories. Our results
confirm that the RTA is consistent with the one way export and the
successful price and successful quality competition categories in two way
trade on one side, and the relative trade disadvantage with the one way
import and the unsuccessful price and unsuccessful quality competition on
the other.
Journal: Applied Economics
Pages: 399-408
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508725
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508725
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:399-408
Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Title: Trade and income at different stages of economic development
Abstract:
Recent research has found a strong positive effect of international trade
on real income. We propose that this relationship may vary with the level
of economic development. Using the instrument variable threshold
regressions approach proposed by Caner and Hansen (2004), we find evidence
that trade openness contributes to uneven development. Greater trade
openness tends to have beneficial effects on real income for more
industrialized countries. For less developed countries, however, trade
openness appears to influence real income in a significantly negative way.
The findings imply that greater international trade and integration may
foster inequality of nations and hence contribute to more diverging
economies.
Journal: Applied Economics
Pages: 409-421
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508726
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508726
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:409-421
Template-Type: ReDIF-Article 1.0
Author-Name: Alex YiHou Huang
Author-X-Name-First: Alex YiHou
Author-X-Name-Last: Huang
Title: Volatility forecasting by quantile regression
Abstract:
Quantile regression allows one to predict the volatility of time series
without assuming an explicit form for the underlying distribution.
Financial assets are known to have irregular return patterns; not only the
volatility but also the distribution functions themselves may vary with
time, so traditional time series models are often unreliable. This study
presents a new approach to volatility forecasting by quantile regression
utilizing a uniformly spaced series of estimated quantiles. The proposed
method provides much more complete information on the underlying
distribution, without recourse to an assumed functional form. Based on an
empirical study of seven stock indices, using 16 years of daily return
data, the proposed approach produces better volatility forecasts for six
of the seven indices.
Journal: Applied Economics
Pages: 423-433
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508727
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508727
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:423-433
Template-Type: ReDIF-Article 1.0
Author-Name: Fr餩ric Laurin
Author-X-Name-First: Fr餩ric
Author-X-Name-Last: Laurin
Title: Trade and regional growth in Spain: panel cointegration in a small sample
Abstract:
In this article, we test for the existence of a relationship between per
capita Gross Domestic Product (GDP) and trade, for 15 Spanish Autonomous
Communities between 1988 and 2004, using a panel cointegration
methodology. In particular, we implement several panel unit root tests
(Maddala and Wu, 1999; Levin et al., 2002; Im
et al., 2003) and panel cointegration tests
(Pedroni, 1999, 2004), with a special attention to their behaviour in a
small sample. We also develop a Seemingly Unrelated Regression Estimation
(SURE) residual based test, in order to explicitly take into account the
cross regional correlation pattern. Appropriate confidence intervals are
estimated with a sieve bootstrap designed for our small time sample,
preserving the dependence structure among cross sectional units. Our
cointegration tests reject the existence of a significant relationship
between GDP per capita and exports. However, we do find some evidence of a
significant relationship between GDP per capita and imports or with total
trade.
Journal: Applied Economics
Pages: 435-447
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508728
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508728
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:435-447
Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Nautz
Author-X-Name-First: Dieter
Author-X-Name-Last: Nautz
Author-Name: Juliane Scharff
Author-X-Name-First: Juliane
Author-X-Name-Last: Scharff
Title: Inflation and relative price variability in the euro area: evidence from a panel threshold model
Abstract:
The impact of inflation on Relative Price Variability (RPV) generates an
important channel for real effects of inflation. This article provides
first evidence on the empirical relation between inflation and RPV in the
euro area. Stirred by the widespread use of inflation caps or target bands
in monetary policy practice, we are particularly interested in threshold
effects of inflation. In line with the predictions of monetary search
models, our results indicate that expected inflation significantly
increases RPV only if inflation is either very low (below 0.95% per annum
(p.a.)) or very high (above 4.96% p.a.).
Journal: Applied Economics
Pages: 449-460
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508729
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508729
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:449-460
Template-Type: ReDIF-Article 1.0
Author-Name: Sang H. Lee
Author-X-Name-First: Sang H.
Author-X-Name-Last: Lee
Author-Name: John Levendis
Author-X-Name-First: John
Author-X-Name-Last: Levendis
Author-Name: Luis Gutierrez
Author-X-Name-First: Luis
Author-X-Name-Last: Gutierrez
Title: Telecommunications and economic growth: an empirical analysis of sub-Saharan Africa
Abstract:
We examine the effect of mobile cellular phones on economic growth in
sub-Saharan Africa where a marked asymmetry is present between land line
penetration and mobile telecommunications expansion. This study extends
previous research along two important dimensions. First, we allow for the
potential endogeneity between economic growth and telecommunications
expansion by employing a special linear Generalized Method of Moments
(GMM) estimator. Second, we explicitly model for varying degrees of
substitutability between mobile cellular and land line telephony, so that
greater expansion of mobile telecommunications can have a different impact
whenever the level of land line penetration differs. We find that mobile
cellular phone expansion is an important determinant of the rate of
economic growth in sub-Saharan Africa. Moreover, we find that the
contribution of mobile cellular phones to economic growth has been growing
in importance in the region, and that the marginal impact of mobile
telecommunication services is even greater wherever land line phones are
rare. Given the low cost of mobile telecommunications technology relative
to other broad infrastructure projects, especially land line
infrastructure, we advocate that mobile telecommunication services be
encouraged in the area.
Journal: Applied Economics
Pages: 461-469
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508730
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508730
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:461-469
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Volpe Martincus
Author-X-Name-First: Christian Volpe
Author-X-Name-Last: Martincus
Author-Name: Jerónimo Carballo
Author-X-Name-First: Jerónimo
Author-X-Name-Last: Carballo
Author-Name: Pablo M. Garcia
Author-X-Name-First: Pablo M.
Author-X-Name-Last: Garcia
Title: Public programmes to promote firms’ exports in developing countries: are there heterogeneous effects by size categories?
Abstract:
Several countries have implemented programmes to support their
firms’ internationalization efforts. Their impacts are likely to be
heterogeneous over firm size categories because these programmes are
primarily intended and expected to benefit smaller companies. Whether this
is or not the case is still an open question. In this article, we aim at
filling this gap in the literature by providing evidence on the effects of
trade promotion programmes on the export performance of firms within
different size segments using a rich firm level dataset for Argentina over
the period 2002 to 2006. We find that these effects are indeed larger for
smaller firms.
Journal: Applied Economics
Pages: 471-491
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508731
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508731
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:471-491
Template-Type: ReDIF-Article 1.0
Author-Name: Heather L. R. Tierney
Author-X-Name-First: Heather L. R.
Author-X-Name-Last: Tierney
Title: Examining the ability of core inflation to capture the overall trend of total inflation
Abstract:
This article examines whether core inflation is able to predict the
overall trend of total inflation using real-time data in a parametric and
nonparametric framework. Specifically, two sample periods and five
in-sample forecast horizons in two measures of inflation, which are the
Personal Consumption Expenditure (PCE) and the Consumer Price Index (CPI),
are used in the exclusions-from-core inflation persistence model. This
article finds that core inflation is only able to capture the overall
trend of total inflation for the 12-quarter in-sample forecast horizon
using the CPI in both the parametric and nonparametric models in the
longer sample period. The nonparametric model outperforms the parametric
model for both data samples and for all five in-sample forecast horizons.
Journal: Applied Economics
Pages: 493-514
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508732
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508732
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:493-514
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher F. Baum
Author-X-Name-First: Christopher F.
Author-X-Name-Last: Baum
Author-Name: Atreya Chakraborty
Author-X-Name-First: Atreya
Author-X-Name-Last: Chakraborty
Author-Name: Liyan Han
Author-X-Name-First: Liyan
Author-X-Name-Last: Han
Author-Name: Boyan Liu
Author-X-Name-First: Boyan
Author-X-Name-Last: Liu
Title: The effects of uncertainty and corporate governance on firms’ demand for liquidity
Abstract:
We find that US corporations’ demand for liquidity is sensitive to
two important factors: uncertainty facing the firm and the quality of
corporate governance. Following prior research, we find that both factors
have important influences on firms’ cash holdings. Our results also
indicate that the interactions between uncertainty and governance measures
are significant. From a policy perspective, these new findings indicate
that both governance and the nature of uncertainty may play an important
role in managing liquidity risks. Policy recommendations may not only be
limited to changes in financial policy but may also include changes in
corporate governance.
Journal: Applied Economics
Pages: 515-525
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508733
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508733
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:515-525
Template-Type: ReDIF-Article 1.0
Author-Name: Michael P. Kidd
Author-X-Name-First: Michael P.
Author-X-Name-Last: Kidd
Author-Name: Renuka Metcalfe
Author-X-Name-First: Renuka
Author-X-Name-Last: Metcalfe
Author-Name: Peter J. Sloane
Author-X-Name-First: Peter J.
Author-X-Name-Last: Sloane
Title: The determinants of hiring older workers in Britain revisited: an analysis using WERS 2004
Abstract:
This article reexamines the role of specific human capital and back
loading of compensation as deterrents to hiring older workers. We utilize
the framework initially suggested by Hutchens (1986) and more recently
implemented by Daniel and Heywood (2007). This approach identifies the
extent to which firms hire older workers at a rate less than full
replacement would imply. Using the 2004 British Workplace Employment
Relations Survey, we examine whether a more favourable climate including a
much tighter UK labour market combined with the abandonment of defined
benefit pension schemes has increased the tendency to hire older workers.
We also examine the impact of private health insurance.
Journal: Applied Economics
Pages: 527-536
Issue: 4
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.508734
File-URL: http://hdl.handle.net/10.1080/00036846.2010.508734
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Handle: RePEc:taf:applec:44:y:2012:i:4:p:527-536
Template-Type: ReDIF-Article 1.0
Author-Name: Hans-Jürgen Engelbrecht
Author-X-Name-First: Hans-Jürgen
Author-X-Name-Last: Engelbrecht
Title: Some empirics of the bivariate relationship between average subjective well-being and the sustainable wealth of nations
Abstract:
The World Bank's Millennium Capital Assessment (MCA) has provided per
capita estimates of total wealth and its major subcategories for a large
number of countries. In this article, these macro-level estimates are used
to explore bivariate cross-country ‘wealth--happiness’
relationships, focussing on issues of appropriate functional form,
parameter stability and outliers. For comparative purposes,
‘income--happiness’ relationships are also explored. Total
wealth turns out to be strongly related to Gross National Income (GNI) per
capita, due to the importance of produced and intangible capital, but not
to natural capital. In contrast, when the most natural capital intensive
countries are excluded as outliers, a strong relationship emerges between
Subjective Well-Being (SWB) and natural capital,
especially amongst high income countries. In these countries, natural
capital seems to be an important wealth correlate of SWB,
despite accounting for only a very small proportion of total wealth.
Journal: Applied Economics
Pages: 537-554
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.510464
File-URL: http://hdl.handle.net/10.1080/00036846.2010.510464
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:537-554
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Cook
Author-X-Name-First: Steve
Author-X-Name-Last: Cook
Title: An historical perspective on the forecasting performance of the Treasury Model: forecasting the growth in UK consumers’ expenditure
Abstract:
Drawing upon Treasury Official Economic Forecasts Vols. I &
II, a series of Treasury Model (TM) forecasts of the percentage
growth in real total consumers’ expenditure are derived for the
period 1967 to 1989. The one-, two- and three-step ahead forecasts
examined cover an interesting period which includes major shocks to the UK
economy, business cycle effects and changes in economic policy. Whilst a
battery of forecast evaluation statistics and tests do not detect any
evidence of forecast bias or irrationality over the whole sample,
split-sample analysis provides evidence of a switch from overprediction to
underprediction around 1977. In addition, the application of
‘modified’ versions of Holden--Peel (1990) tests provides
evidence of the longest horizon forecasts failing to capture the full
movement of changes in consumption growth. Using simple regression and a
selection of forecast encompassing tests, shorter horizon forecasts are
found to dominate longer horizon forecasts, a feature which might be
expected logically, but need not occur in practice. Finally, forecast
performance is related to changes in model specification and modelling
methodology.
Journal: Applied Economics
Pages: 555-563
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.510465
File-URL: http://hdl.handle.net/10.1080/00036846.2010.510465
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:555-563
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Gazi Mainul Hassan
Author-X-Name-First: Gazi Mainul
Author-X-Name-Last: Hassan
Title: An analysis of the determinants of the long-run growth rate of Bangladesh
Abstract:
This article develops a framework to analyse the determinants of the long
term growth rate of Bangladesh. It is based on the Solow (1956) growth
model and its extension by Mankiw et al. (1992) and
follows Senhadji's (2000) growth accounting procedure to estimate Total
Factor Productivity (TFP). Our Growth Accounting Exercise (GAE) shows that
growth rate in Bangladesh, until the 1990s was primarily due to factor
accumulation. Since then, however, TFP has made a small
positive contribution. Using our results on the determinants of
TFP, we also examine policy options to double per capita
income of Bangladesh in about 15 years.
Journal: Applied Economics
Pages: 565-580
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.510466
File-URL: http://hdl.handle.net/10.1080/00036846.2010.510466
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:565-580
Template-Type: ReDIF-Article 1.0
Author-Name: R. Dixon
Author-X-Name-First: R.
Author-X-Name-Last: Dixon
Author-Name: G. Lim
Author-X-Name-First: G.
Author-X-Name-Last: Lim
Title: A univariate model of aggregate labour productivity
Abstract:
A model of labour productivity that distinguishes between permanent and
transient shocks on productivity is proposed. We show that this model is a
type of unobserved components model -- a random walk with drift plus noise
model. The advantage of this approach is that it provides a coherent
framework to identify the deterministic trend growth component and also
the productivity-enhancing (or technology-related) stochastic components.
The model is applied to aggregate labour productivity in Australia, and
the time series of technology shocks extracted sheds some light on the
contributions of policy reforms to productivity.
Journal: Applied Economics
Pages: 581-585
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/13504851.2010.511991
File-URL: http://hdl.handle.net/10.1080/13504851.2010.511991
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:581-585
Template-Type: ReDIF-Article 1.0
Author-Name: Bahro A. Berhan
Author-X-Name-First: Bahro A.
Author-X-Name-Last: Berhan
Author-Name: Glenn P. Jenkins
Author-X-Name-First: Glenn P.
Author-X-Name-Last: Jenkins
Title: The self-imposed embargo: customs-related transaction costs of North Cyprus
Abstract:
Customs-related transaction costs are a major barrier to the expansion of
international trade. These costs are a financial burden to importers and
ultimately to consumers. This study measures the transaction costs that
are created by the obsolete customs and port handling procedures in North
Cyprus. Such an analysis is important because since 1974 North Cyprus has
suffered under a direct trade embargo. All its imports and exports must
come or go via the ports in Turkey. This study finds that excessive trade
transaction costs inflicted by the inefficient port handling and customs
services of North Cyprus is between 1.42 to 2.96 times as costly as the
extra transportation costs caused by the international embargo on its
direct trade with the rest of the world.
Journal: Applied Economics
Pages: 587-597
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.511992
File-URL: http://hdl.handle.net/10.1080/00036846.2010.511992
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:587-597
Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: Don J. Webber
Author-X-Name-First: Don J.
Author-X-Name-Last: Webber
Author-Name: Scott Fargher
Author-X-Name-First: Scott
Author-X-Name-Last: Fargher
Title: Testing the validity of the Feldstein--Horioka puzzle for Australia
Abstract:
This article presents the details of an investigation into the
relationship between investment and savings in Australia over the period
1960 to 2007. Using five time series techniques our results reveal that
the Feldstein--Horioka puzzle exists in a weak form, with a lower saving
retention coefficient. Granger causality tests illustrate that savings
Granger causes investment, both in the short and long runs. Our results
suggest Australia could effectively adopt policies that focus on
increasing investment through increasing domestic savings.
Journal: Applied Economics
Pages: 599-605
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.511993
File-URL: http://hdl.handle.net/10.1080/00036846.2010.511993
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:599-605
Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: Don J. Webber
Author-X-Name-First: Don J.
Author-X-Name-Last: Webber
Author-Name: Scott Fargher
Author-X-Name-First: Scott
Author-X-Name-Last: Fargher
Title: Wagner's Law revisited: cointegration and causality tests for New Zealand
Abstract:
Wagner's Law states that the share of government expenditure in Gross
National Product (GNP) will increase with economic development; many
associated empirical studies substitute GNP with Gross Domestic Product
(GDP). This article presents an empirical investigation into the validity
of Wagner's Law for New Zealand over the period 1960 to 2007 and compares
the results obtained using these two measures of output. Application of
the Autoregressive Distributed Lag (ARDL) bounds test suggests a
cointegrating relationship between either output measure and the share of
government spending, and further application of General to Specific
(GETS), Engle and Granger (EG), Phillip Hansen's Fully Modified Ordinary
Least Squares (FMOLS) and Johansen's time series techniques illustrate
statistical robustness and an income elasticity between 0.56 and 0.84. The
results suggest that output measures Granger cause the share of government
expenditure in the long run, thereby providing support for Wagner's Law,
and these results are stable irrespective of the chosen output measure.
Journal: Applied Economics
Pages: 607-616
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.511994
File-URL: http://hdl.handle.net/10.1080/00036846.2010.511994
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:607-616
Template-Type: ReDIF-Article 1.0
Author-Name: António Portugal Duarte
Author-X-Name-First: António Portugal
Author-X-Name-Last: Duarte
Author-Name: João Sousa Andrade
Author-X-Name-First: João Sousa
Author-X-Name-Last: Andrade
Title: How the Gold Standard functioned in Portugal: an analysis of some macroeconomic aspects
Abstract:
Portugal was the first country in Europe to join Great Britain in the
Gold Standard, in 1854, having abandoned the principle of free gold
convertibility in 1891. By elucidating the historical choice of the Gold
Standard by the Portuguese authorities, and analysing its macroeconomic
behaviour, we prove that it is a mistake to compare different monetary
systems with the same indicators. Our examination of demand, supply and
monetary shocks in the context of a Vector Autoregression (VAR) model
confirm the idea of appropriate application of the principles of classical
economics to the Gold Standard in Portugal. We also prove that the
principles of demand management were not compatible with the functioning
of the Gold Standard.
Journal: Applied Economics
Pages: 617-629
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.513675
File-URL: http://hdl.handle.net/10.1080/00036846.2010.513675
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:617-629
Template-Type: ReDIF-Article 1.0
Author-Name: Hyeyoen Kim
Author-X-Name-First: Hyeyoen
Author-X-Name-Last: Kim
Title: Large data sets, nonlinearity and the speed of adjustment to real exchange rate shocks
Abstract:
A well known puzzle in international finance concerns the very slow
speeds of adjustment of real exchange rates observed in response to
shocks. In this article, we explore whether allowing for a wide range of
influences on the real exchange rate in a nonlinear framework can help
resolve this puzzle. Using, recently proposed econometric methods for
summarizing very large macroeconomic data sets into a small number of
observable factors, we find that there is a long run relationship between
these factors and real exchange rates. When put into a nonlinear
framework, we find that allowing for the effects of macroeconomic factors
dramatically increases the measured speed of adjustment of the real
exchange rate.
Journal: Applied Economics
Pages: 631-639
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.513676
File-URL: http://hdl.handle.net/10.1080/00036846.2010.513676
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:631-639
Template-Type: ReDIF-Article 1.0
Author-Name: Sheikh Selim
Author-X-Name-First: Sheikh
Author-X-Name-Last: Selim
Title: Labour productivity and rice production in Bangladesh: a stochastic frontier approach
Abstract:
In this article, we examine the significance of labour productivity and
use of inputs in explaining technical efficiency of rice production in
Bangladesh. We find that higher labour productivity can stimulate high
efficiency gains, but increased use of inputs (except land) induces
negative marginal effect on technical efficiency. While more use of land,
improved seeds and fertilizers contributes to the rate of labour
productivity induced marginal efficiency gain, any additional labour
depresses this rate. Given the agricultural policy reform history in
Bangladesh, our findings imply that rather than providing input subsidy or
output price support, future reforms should put more emphasis on providing
incentives to enhance labour productivity and encourage formalization of
the agricultural labour market.
Journal: Applied Economics
Pages: 641-652
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.515203
File-URL: http://hdl.handle.net/10.1080/00036846.2010.515203
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:641-652
Template-Type: ReDIF-Article 1.0
Author-Name: Tuvshintugs Batdelger
Author-X-Name-First: Tuvshintugs
Author-X-Name-Last: Batdelger
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Title: Determinants of the current account balance in the United States
Abstract:
This article studies the role of public and private imbalances in the
behaviour of the current account balance in the United States in the
context of an intertemporal model. The estimation evaluates the effects of
public and private imbalances on the dynamics of the current account.
Correlation coefficients support the Ricardian equivalence. Higher budget
deficit correlates with a reduction in private consumption and an increase
in private savings. Government saving does not vary significantly with
macroeconomic variables in the short- or in the long-run. In contrast,
fluctuations in government investment vary significantly with a number of
economic variables in the long- and in the short-run. Accordingly,
fluctuations in the budget deficit are likely to be driven by fluctuations
in public investment. In contrast to government savings, private savings
vary significantly with macro variables in the long- and in the short-run.
Fluctuations in private investment appear less evident compared to that in
private savings. Overall, fluctuations in the current account balance
appear to be more tied to movements in the budget deficit. Nonetheless,
fluctuations in the budget deficit are moderated by an increase in private
savings and a reduction in private investment, moderating fluctuations in
the current account balance.
Journal: Applied Economics
Pages: 653-669
Issue: 5
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.518950
File-URL: http://hdl.handle.net/10.1080/00036846.2010.518950
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Handle: RePEc:taf:applec:44:y:2012:i:5:p:653-669
Template-Type: ReDIF-Article 1.0
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Author-Name: Arusha Cooray
Author-X-Name-First: Arusha
Author-X-Name-Last: Cooray
Title: How useful is growth literature for policies in the developing countries?
Abstract:
Growth literature has focused mainly on the long-term growth outcomes,
but policy makers of the developing economies need rapid improvements in
the short- to medium-term growth rates. In this article, we argue that
this widening gap can be reduced by distinguishing between the short- to
medium-term growth effects of policies from their long-run growth effects.
With data from Singapore, Malaysia and Thailand, we show that an extended
Solow (1956) model can narrow this gap. We find that the short to medium
term growth effects of an increase in the investment ratio are quite
significant and persist for up to 10 years.
Journal: Applied Economics
Pages: 671-681
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.517188
File-URL: http://hdl.handle.net/10.1080/00036846.2010.517188
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:671-681
Template-Type: ReDIF-Article 1.0
Author-Name: Jakob B. Madsen
Author-X-Name-First: Jakob B.
Author-X-Name-Last: Madsen
Author-Name: Ratbek Dzhumashev
Author-X-Name-First: Ratbek
Author-X-Name-Last: Dzhumashev
Title: The equity premium and the required stock returns in a Tobin's q model with a stochastic discount factor
Abstract:
Based on the production-based Capital Asset Pricing Model (CAPM)
principle, this article shows that earnings per unit of capital and the
output capital ratio are excellent measures of expected stock returns
because they are only temporarily affected by earnings shocks but affected
permanently by changes in required share returns. Evidence for the US
suggests that the risk premium is currently about 2% and that the
covariance between consumption growth and expected returns is
substantially lower than previously thought of; thus, reducing the equity
puzzle substantially.
Journal: Applied Economics
Pages: 683-694
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.518755
File-URL: http://hdl.handle.net/10.1080/00036846.2010.518755
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:683-694
Template-Type: ReDIF-Article 1.0
Author-Name: Yir-Hueih Luh
Author-X-Name-First: Yir-Hueih
Author-X-Name-Last: Luh
Author-Name: Fung-Mey Huang
Author-X-Name-First: Fung-Mey
Author-X-Name-Last: Huang
Author-Name: Yu-Ning Chien
Author-X-Name-First: Yu-Ning
Author-X-Name-Last: Chien
Author-Name: Chen-Chih Lo
Author-X-Name-First: Chen-Chih
Author-X-Name-Last: Lo
Title: Organizational learning differences in healthcare services: the case of medical centres in Taiwan
Abstract:
This study presents an individual-based evaluation of the within- and
between-organization learning differences in Taiwan's medical centres.
Drawn from Taiwan's National Health Insurance Research (NHIR) database, a
sample of 32 285 Laparoscopic Cholecystectomy (LC) surgery cases performed
in all 18 medical centres during the period 1998 to 2004 is analysed. All
the medical centres in Taiwan are Not-For-Profit (NFP) in nature. This
study thus provides a clear-cut delineation of the learning differences
between public and private hospitals. The individual-based approach
creates surgeon-specific learning distributions within each institution
through a parametric estimation of the hyperbolic model, after controlling
for patients’ heterogeneity. Investigation of the within- and
between-hospital learning differences is accomplished through two
nonparametric tests. The results indicate both within- and
between-organization learning differences. Compared to senior surgeons, an
overall dominance of learning effects among junior surgeons is found.
Furthermore, the between-organization comparisons indicate junior surgeons
affiliated with private hospitals learn faster than their peers in public
hospitals. This suggests potential learning differences in terms of
hospital costs may result from hospital ownership.
Journal: Applied Economics
Pages: 695-706
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.518943
File-URL: http://hdl.handle.net/10.1080/00036846.2010.518943
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:695-706
Template-Type: ReDIF-Article 1.0
Author-Name: Matt E. Ryan
Author-X-Name-First: Matt E.
Author-X-Name-Last: Ryan
Author-Name: Marshall Gramm
Author-X-Name-First: Marshall
Author-X-Name-Last: Gramm
Author-Name: Nicholas McKinney
Author-X-Name-First: Nicholas
Author-X-Name-Last: McKinney
Title: Information effects in major league baseball betting markets
Abstract:
Previous studies point to a generally efficient baseball betting market
with no profitable betting strategies. However, failure to consider the
time of year in which the bets are placed neglects differences in
available information throughout the season. This analysis largely
confirms the general efficiency of the major league baseball betting
market by existing measures; however, incorporating the time of the year
in which the bet is made generates persistent profitable betting
strategies. The process by which information impacts returns is
considered; increasing difficulties in determining the true favourite
likely play the largest role, while assessing the exact favourite underdog
relationship also has an impact.
Journal: Applied Economics
Pages: 707-716
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.518951
File-URL: http://hdl.handle.net/10.1080/00036846.2010.518951
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:707-716
Template-Type: ReDIF-Article 1.0
Author-Name: Diansheng Dong
Author-X-Name-First: Diansheng
Author-X-Name-Last: Dong
Author-Name: Todd M. Schmit
Author-X-Name-First: Todd M.
Author-X-Name-Last: Schmit
Author-Name: Harry Kaiser
Author-X-Name-First: Harry
Author-X-Name-Last: Kaiser
Title: Modelling household purchasing behaviour to analyse beneficial marketing strategies
Abstract:
Price promotion and generic advertising are two common strategies to
increase consumer demand for food products. Which one is preferred over
the other depends largely, on the relative importance of state dependence
and heterogeneity in household purchase decision and behaviour on desired
commodity over time. In this article, this issue is investigated for
household purchases of fluid milk products using a panel data dynamic
Tobit model. The proposed econometric model accounts not only for state
dependence and heterogeneity of the purchasing process, but also for the
censoring or sample selectivity encountered when using household survey
data. Empirical findings show that state dependence is negative and
household heterogeneity over milk persists over time implying that
advertising efforts aimed at increasing milk consumption would be more
effective than short-term price promotions. The results also suggest that
advertising efforts should concentrate on attracting new purchasers and
increasing purchase frequencies for fluid milk products.
Journal: Applied Economics
Pages: 717-725
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.522521
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522521
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:717-725
Template-Type: ReDIF-Article 1.0
Author-Name: Danny Leung
Author-X-Name-First: Danny
Author-X-Name-Last: Leung
Author-Name: Yi Zheng
Author-X-Name-First: Yi
Author-X-Name-Last: Zheng
Title: What affects MFP in the long-run? Evidence from Canadian industries
Abstract:
Using data on 12 Canadian industries for 1976--2003, this study employs a
dynamic panel error correction model to establish the relative importance
of potential determinants of Multifactor Productivity (MFP). The model
restricts the long run coefficients of these factors to be the same across
industries, but allows industry heterogeneity in the short-run
coefficients. After controlling for capacity utilization, Information and
Communications Technologies (ICT) capital, outsourcing and global trade
openness are found to have a statistically significant positive effect on
MFP. The long run impact of ICT is small, but its recent contribution to
MFP growth is sizeable for some industries, possibly reflecting the
delayed benefits of the ICT investment surge in the late 1990s due to
adjustment costs. Global trade openness and industry outsourcing generally
raises MFP.
Journal: Applied Economics
Pages: 727-738
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.522522
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522522
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:727-738
Template-Type: ReDIF-Article 1.0
Author-Name: Colin Hunt
Author-X-Name-First: Colin
Author-X-Name-Last: Hunt
Title: The interaction of public and private capital: a study of 20 OECD members
Abstract:
This article addresses the interaction of public and private capital
stocks. We show for most developed countries that there is a long-term
equilibrium relation between public and private capital. We find that
imbalances in the relation of public and private capital are most likely
to be corrected through a public capital adjustment. Private capital tends
towards weak exogeneity. The evidence presented suggests that public
investment is more likely to be enticed by private investment rather than
serve to crowd out private investment activity.
Journal: Applied Economics
Pages: 739-764
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.522523
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522523
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:739-764
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaodong Du
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Du
Author-Name: David A. Hennessy
Author-X-Name-First: David A.
Author-X-Name-Last: Hennessy
Title: The planting real option in cash rent valuation
Abstract:
After entering into a farmland cash rent contract in the fall, a tenant
farmer has flexibility over the spring crop choice and the input
application level. Failure to account for these options will bias
estimates of what farmers should pay to rent land. Applying Monte Carlo
simulation methods, this study investigates the option values for these
choices. A Multivariate Gaussian Copula (MGC) is employed to account for
dependence among yields and prices. Results show that the average cash
rent valuation for the real option approach is $33.6 higher than that for
the conventional Net Present Value (NPV) method, in which the input
intensity option is $0.9. Crop planting sequence is shown to impact the
real option value.
Journal: Applied Economics
Pages: 765-776
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.522524
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522524
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:765-776
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriella Sjögren Lindquist
Author-X-Name-First: Gabriella Sjögren
Author-X-Name-Last: Lindquist
Author-Name: Jenny Säve-Söderbergh
Author-X-Name-First: Jenny
Author-X-Name-Last: Säve-Söderbergh
Title: Securing victory or not? Surrendering optimal play when facing simple calculations -- a natural experiment from the Swedish and US Jeopardy
Abstract:
This article empirically investigates the common assumption of economic
agents’ capabilities to process complex mathematical problems to
find optimal strategies applied in economic modelling. By exploiting a
design difference in the game show Jeopardy between the
US and Sweden, we obtain a natural experiment of individuals facing an
optimization decision either having explicit information or deriving it by
noncomplex adding and subtracting. Given the assumption that individuals
compute optimally, there should be no difference in the strategies used.
Yet, the results show that even a small change in informational
pre-conditions for obtaining an optimal strategy strongly alters
economic-decision making.
Journal: Applied Economics
Pages: 777-783
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.522525
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522525
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:777-783
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Author-Name: Ernest W. King
Author-X-Name-First: Ernest W.
Author-X-Name-Last: King
Title: Helping Hispanic-America vote? Ballot technology, voter fatigue and HAVA 2002
Abstract:
Lott (2009) finds that nonvoted ballot rates for down-ballot races are
greater than those for presidential races, and newer technologies that
reduce nonvoted presidential ballots create even greater rates of
nonvoting down-ballot than the same older voting technologies. The
conclusion is momentous: adopting voting technologies that minimize
under-voting in presidential races actually increases under-voting across
all races on the same ballot. This study extends Lott's by examining the
Congressional vote on the Help America Vote Act of 2002
(HAVA 2002), which established a program to provide funds
to states in order to replace punch card voting systems with newer
technologies. We focus on the racial component of Lott's finding,
specifically that Hispanic-American voters exhibit greater rates of voter
fatigue than do white voters. This study posits that, given the large
Hispanic-American populations in California and Texas and their propensity
to support Democrats in these states, House Democrats from these states
would not view the HAVA 2002 as favourably as House
Democrats from other parts of the US. Among other results presented here,
the data show that support for HAVA 2002 among California
and Texas House Democrats was 11.6 percentage points below that of House
Democrats from the other 48 states.
Journal: Applied Economics
Pages: 785-792
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.522526
File-URL: http://hdl.handle.net/10.1080/00036846.2010.522526
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:785-792
Template-Type: ReDIF-Article 1.0
Author-Name: Christiane Goodfellow
Author-X-Name-First: Christiane
Author-X-Name-Last: Goodfellow
Author-Name: Martin T. Bohl
Author-X-Name-First: Martin T.
Author-X-Name-Last: Bohl
Title: Forestalling floor closure: evidence from a natural experiment on the German stock market
Abstract:
This article contributes to the debate about the relative qualities of
floor and electronic trading systems by analysing the effects of bringing
forward the Xetra closing time from 8.00 pm to 5.30 pm in
November 2003, while the Frankfurt floor remains open until
8.00 pm. This natural experiment provides a ‘cleaner’
institutional setting than in Venkataraman (2001), as it enables us to
investigate trading quality on both platforms for the
same stocks in the same country before
and after the event. The empirical evidence suggests that primarily
institutional investors trading in large stocks transfer to the floor when
Xetra closes earlier. It appears that investors remain with Xetra for
informed trading though.
Journal: Applied Economics
Pages: 793-802
Issue: 6
Volume: 44
Year: 2012
Month: 2
X-DOI: 10.1080/00036846.2010.524626
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524626
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Handle: RePEc:taf:applec:44:y:2012:i:6:p:793-802
Template-Type: ReDIF-Article 1.0
Author-Name: Kausik Chaudhuri
Author-X-Name-First: Kausik
Author-X-Name-Last: Chaudhuri
Author-Name: Mary M. Cherical
Author-X-Name-First: Mary M.
Author-X-Name-Last: Cherical
Title: Credit rationing in rural credit markets of India
Abstract:
This article analyses the prevalent situation of the formal Financial
Institutions (FIs) in rural India using data from National Sample Survey
54th Round (January--June, 1998). We use sample selectivity model to
examine the sanction of the loan by the FIs as a two-stage process. We
model the choice of the household's credit requirement using an unordered
choice model, namely, a multinomial logit model. Our results reveal that
the rural households are considerably credit constrained. The households
who do not have an account in a FI have a lower chance of obtaining the
loan and households who are credit constrained have relatively lower land
holding and they do not possess livestock. Households who borrow for
nonfarm purpose exhibit a lower chance of obtaining credit compared to
those households who borrow for farm business. Village level
infrastructure plays an important role in determining the credit rationing
behaviour in rural India.
Journal: Applied Economics
Pages: 803-812
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.524627
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524627
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:803-812
Template-Type: ReDIF-Article 1.0
Author-Name: Marc D. Hayford
Author-X-Name-First: Marc D.
Author-X-Name-Last: Hayford
Author-Name: A. G. Malliaris
Author-X-Name-First: A. G.
Author-X-Name-Last: Malliaris
Title: Transparent US monetary policy: theory and tests
Abstract:
In 1994, the Federal Reserve System moved to a more transparent reporting
of monetary policy. This article assesses the impact of monetary policy
transparency on uncertainty about future monetary policy using T-bill rate
forecast dispersions and ex post forecast errors from the
Survey of Professional Forecasters as a proxy for monetary policy
uncertainty. The empirical findings confirm that Federal Reserve
transparency has reduced the uncertainty about future monetary policy.
Journal: Applied Economics
Pages: 813-824
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.524628
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524628
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:813-824
Template-Type: ReDIF-Article 1.0
Author-Name: Winston Ricardo Moore
Author-X-Name-First: Winston Ricardo
Author-X-Name-Last: Moore
Author-Name: Denny M. Lewis-Bynoe
Author-X-Name-First: Denny M.
Author-X-Name-Last: Lewis-Bynoe
Author-Name: Natalia Morgan
Author-X-Name-First: Natalia
Author-X-Name-Last: Morgan
Title: Inflation starts in Latin America and the Caribbean
Abstract:
High rates of inflation are a perennial problem in Latin American and
Caribbean (LAC) countries. This article attempts to identify the factors
that initiate these inflationary episodes using observations on 31 LAC
countries between 1970 and 2006. The study finds that the key determinants
of inflation starts in the region are demand pressures, oil price shocks,
elections, transitions to less repressive political regimes and foreign
inflation.
Journal: Applied Economics
Pages: 825-834
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.524629
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524629
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:825-834
Template-Type: ReDIF-Article 1.0
Author-Name: Harald Badinger
Author-X-Name-First: Harald
Author-X-Name-Last: Badinger
Title: Cyclical expenditure policy, output volatility and economic growth
Abstract:
This article provides an empirical assessment of the relation between the
cyclicality of fiscal expenditure policy, output volatility and economic
growth, using a cross-section of 88 countries over the period 1960 to
2004. Identification of the effects of (endogenous) cyclical expenditure
policy is achieved by exploiting the exogeneity of countries’
political and institutional characteristics, which we find to be relevant
determinants of the cyclicality of expenditures. There are three main
results: first, both pro- and countercyclical expenditure policy amplify
output volatility, much in a way like pure fiscal shocks; second, output
volatility, due to variations in cyclical and discretionary fiscal policy,
is negatively associated with economic growth; third, there is no direct
effect of cyclicality on economic growth other than through output
volatility.
Journal: Applied Economics
Pages: 835-851
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.524630
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524630
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:835-851
Template-Type: ReDIF-Article 1.0
Author-Name: Sami Bibi
Author-X-Name-First: Sami
Author-X-Name-Last: Bibi
Author-Name: Paul Makdissi
Author-X-Name-First: Paul
Author-X-Name-Last: Makdissi
Author-Name: Myra Yazbeck
Author-X-Name-First: Myra
Author-X-Name-Last: Yazbeck
Title: Equivalence scales and housing deprivation orderings: an example using Lebanese data
Abstract:
Housing deprivation orderings raise challenges as far as measurement is
concerned. The first challenge resides in the identification of an
adequate variable that characterizes housing services consumed by
households. Another challenge may arise in the comparisons of housing
services consumption between households of different sizes and
composition. The last challenge may arise in the choice of a deprivation
threshold and of a deprivation index. In this article we address those
challenges theoretically. An empirical illustration is offered using
Lebanese data.
Journal: Applied Economics
Pages: 853-866
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.524631
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524631
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:853-866
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher McIntosh
Author-X-Name-First: Christopher
Author-X-Name-Last: McIntosh
Author-Name: Stefan Hellmer
Author-X-Name-First: Stefan
Author-X-Name-Last: Hellmer
Title: Necessary and sufficient conditions in merger control: the use of HHI and threshold value
Abstract:
This article considers two coarse measures applicable to antitrust
policy: one of market concentration, the Herfindahl--Hirschman Index (HHI)
and one of market dominance, threshold value. Calculations of threshold
value are compared to HHI values to determine when thresholds might be of
specific use in merger cases. Many scenarios which satisfy the threshold
conditions (indicating a dominant firm exists) are consistent with high
HHI numbers such that current US Department of Justice and European
Commission guidelines (based on HHIs) for merger concerns will have been
met. It is suggested as a rule of thumb that HHIs be used as necessary
conditions and threshold value be considered sufficient conditions for
further case review.
Journal: Applied Economics
Pages: 867-878
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.524632
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524632
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:867-878
Template-Type: ReDIF-Article 1.0
Author-Name: Mamta B. Chowdhury
Author-X-Name-First: Mamta B.
Author-X-Name-Last: Chowdhury
Title: Growth and dynamics of Australia's education exports
Abstract:
Australia is the third largest global exporter of education services and
generated $18.6 billion in 2009--2010. The education sector ranks as the
top services exports and number three of all export earners in recent
years after coal and iron ore. This study analyses the major determinants
of Australia's education exports. Using the Johansen cointegration
technique, a stable long run relationship is found between education
export earnings, real exchange rate, world income and terms of trade. It
is also found that policy reforms relating to opening up the education
sector from the mid 1980s had a positive growth effect on the sector.
Journal: Applied Economics
Pages: 879-888
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.524633
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524633
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:879-888
Template-Type: ReDIF-Article 1.0
Author-Name: Kathryn L. Combs
Author-X-Name-First: Kathryn L.
Author-X-Name-Last: Combs
Author-Name: John A. Spry
Author-X-Name-First: John A.
Author-X-Name-Last: Spry
Title: Who plays the numbers games in the middle of the day?
Abstract:
We analyse the increase in sales of Pick 3 and Pick 4 daily numbers
lottery games and other Ohio Lottery games after Ohio introduced midday
drawings for the Pick 3 and Pick 4 games in August 1999. The midday
drawings increased Pick 3 sales by 5%, Pick 4 sales by 12%, and total
lottery sales by 2% based on our analysis of a 36-month panel dataset of
Ohio lottery sales by zip code. Midday drawings raise more revenue from
the strongly regressive daily numbers games. However, the introduction of
midday drawings does not change the negative income elasticities of demand
for numbers games in an economically meaningful manner.
Journal: Applied Economics
Pages: 889-897
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.524634
File-URL: http://hdl.handle.net/10.1080/00036846.2010.524634
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:889-897
Template-Type: ReDIF-Article 1.0
Author-Name: Fabrice Collard
Author-X-Name-First: Fabrice
Author-X-Name-Last: Collard
Author-Name: Carole Haritchabalet
Author-X-Name-First: Carole
Author-X-Name-Last: Haritchabalet
Title: Valuing satellite systems to support fishing in a dynamic competitive model
Abstract:
This article investigates the technology adoption decision of a new
satellite system aimed at locating tuna shoals. We propose a dynamic
imperfect competition model with vertical differentiation in which each
firm acts as a Cournot oligopolist and takes the evolution of the natural
resource into account. In this dynamic setting, the model cannot be solved
analytically and we rely on a numerical approach. Results are derived for
the northern bluefin tuna. We find that high-quality firms value more the
technology than low-quality firms. A direct implication of this result is
that the market value of the new technology can be maximized while serving
only the highest quality firms. We then evaluate how individual quotas can
be used to increase the value that firms attach to the technology.
Journal: Applied Economics
Pages: 899-916
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.526581
File-URL: http://hdl.handle.net/10.1080/00036846.2010.526581
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:899-916
Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Domez
Author-X-Name-First: Emilio
Author-X-Name-Last: Domez
Author-Name: Miren Ullibarri
Author-X-Name-First: Miren
Author-X-Name-Last: Ullibarri
Author-Name: Idoia Zabaleta
Author-X-Name-First: Idoia
Author-X-Name-Last: Zabaleta
Title: Effects of reduction in working hours on a model with job creation and job destruction
Abstract:
This article shows how, with certain modifications to a standard Real
Business Cycle (RBC) model, and with certain qualified responses in the
short and long term, a policy of reduction in the number of working hours
can have positive effects on activity and employment. The modifications
required to bring about these results include specification of the working
day, existence of the creation and destruction of employment and
differentiation between inactivity and unemployment. Results reveal that
any measures taken to reduce the number of working hours must take into
consideration the productivity levels of working hours, to thus ensure
that the consequences of such a policy are positive not only for
employment but also in all other macroeconomic variables.
Journal: Applied Economics
Pages: 917-932
Issue: 7
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.526583
File-URL: http://hdl.handle.net/10.1080/00036846.2010.526583
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Handle: RePEc:taf:applec:44:y:2012:i:7:p:917-932
Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨀠 Ángeles Cadarso Vecina
Author-X-Name-First: Mar𨀠 Ángeles Cadarso
Author-X-Name-Last: Vecina
Author-Name: Nuria Gómez Sanz
Author-X-Name-First: Nuria Gómez
Author-X-Name-Last: Sanz
Author-Name: Luis Antonio López Santiago
Author-X-Name-First: Luis Antonio López
Author-X-Name-Last: Santiago
Author-Name: Mar𨀠 Ángeles Tobarra Gómez
Author-X-Name-First: Mar𨀠 Ángeles Tobarra
Author-X-Name-Last: Gómez
Title: Offshoring components and their effect on employment: firms deciding about how and where
Abstract:
Firms must take two fundamental decisions: how and where to produce.
Traditional measures of offshoring include information on both decisions
but cannot distinguish between them. In this article, we attempt to
distinguish the evolution of the requirement of inputs per unit of output
(how to produce) from the delocalization of production to others countries
(where to produce). We call global technical change to the first element
and net offshoring to the second. We further decompose net offshoring into
net inter-industry substitution and intra-industrial offshoring
(replacement of domestic inputs for imported ones from the same sector).
This last measure quantifies better the concept of delocalization of
production to other countries looking for lower costs, the original idea
behind offshoring. This decomposition allows us to further investigate on
whether technical change or net offshoring is the main factor in recent
Spanish industrial employment changes.
Journal: Applied Economics
Pages: 1009-1020
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.532113
File-URL: http://hdl.handle.net/10.1080/00036846.2010.532113
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:1009-1020
Template-Type: ReDIF-Article 1.0
Author-Name: Sunku Hahn
Author-X-Name-First: Sunku
Author-X-Name-Last: Hahn
Author-Name: Tae-Hwan Kim
Author-X-Name-First: Tae-Hwan
Author-X-Name-Last: Kim
Author-Name: Minho Kim
Author-X-Name-First: Minho
Author-X-Name-Last: Kim
Title: The influence of school quality on housing prices in Korea
Abstract:
The existence of good schools is expected to increase nearby housing
prices. We use a natural experiment from two cities in Korea where the
high school entrance system changed from self-selection to geographical
assignment. Our empirical results show that the existence of good high
schools did increase the nearby housing prices as well as the rental
prices.
Journal: Applied Economics
Pages: 1021-1023
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.534056
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534056
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:1021-1023
Template-Type: ReDIF-Article 1.0
Author-Name: Dobromił Serwa
Author-X-Name-First: Dobromił
Author-X-Name-Last: Serwa
Title: Banking crises and nonlinear linkages between credit and output
Abstract:
In this article, we analyse the asymmetric causality linkages between
credit growth and output growth during banking crises. We employ a
recently developed procedure, based on a bivariate Markov switching model,
to test the hypotheses of independence, causality and asymmetric causality
between credit and output. Using a sample of 103 banking crises around the
world, we find that neither credit nor output takes precedence as a
variable in calm and crisis periods, although there is evidence of
instantaneous interdependence between the banking and real sector during
crises. The results suggest that shocks propagate mostly within a year
between the banking sector and the real economy. The linear link between
credit growth and output growth is also regime dependent.
Journal: Applied Economics
Pages: 1025-1040
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.534064
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534064
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:1025-1040
Template-Type: ReDIF-Article 1.0
Author-Name: Mete Feridun
Author-X-Name-First: Mete
Author-X-Name-Last: Feridun
Title: Liability dollarization, exchange market pressure and fear of floating: empirical evidence for Turkey
Abstract:
The objective of this article is to examine the relationship between
liability dollarization and the Exchange Market Pressure (EMP) in Turkey
within an Autoregressive Distributed Lag (ARDL) and Granger causality
framework using monthly data from 1991:12 to 2006:08. The findings suggest
that there exists a long-term equilibrium relationship between EMP and
liability dollarization, where liability dollarization Granger causes EMP
both in the short- and long-run, with no evidence of reverse causality.
This suggests that the predominance of foreign currency liabilities in the
banks’ balance sheets in Turkey induces a selling pressure in the
exchange market as well as a fear of floating.
Journal: Applied Economics
Pages: 1041-1056
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.534073
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534073
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:1041-1056
Template-Type: ReDIF-Article 1.0
Author-Name: Dominique Anxo
Author-X-Name-First: Dominique
Author-X-Name-Last: Anxo
Author-Name: Shakir Hussain
Author-X-Name-First: Shakir
Author-X-Name-Last: Hussain
Author-Name: Ghazi Shukur
Author-X-Name-First: Ghazi
Author-X-Name-Last: Shukur
Title: The demand of part-time in European companies: a multilevel modelling approach
Abstract:
Part-time work is one of the most well-known ‘atypical’
working time arrangements. In contrast to previous studies focusing on the
supply side, the originality of our research is to investigate the
demand-side of part-time work and to examine how and why companies use
part-time work. Based on a large and unique sample of European firms
operating in 21 member states, we use a multilevel multinomial modelling
in a Bayesian environment. Our results suggest that the variations in the
extent of part-time workers at the establishment level is determined more
by country-specific features than by industry-specific factors.
Journal: Applied Economics
Pages: 1057-1066
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.534075
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534075
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:1057-1066
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Peyrache
Author-X-Name-First: Antonio
Author-X-Name-Last: Peyrache
Author-Name: Cinzia Daraio
Author-X-Name-First: Cinzia
Author-X-Name-Last: Daraio
Title: Empirical tools to assess the sensitivity of directional distance functions to direction selection
Abstract:
Directional Distance Functions (DDFs) are becoming a popular way of
measuring efficiency as they encompass the Shephard output and input
distance functions as special cases. However, the most critical and still
unsolved issue related to DDF remains the selection of the direction along
which to measure the distance from the efficient frontier. In this
article, we propose some empirical tools which allow to quantify the
sensitivity of the efficiency measurement to the selection of the
direction. The proposed tools are applied on a dataset on the Italian
agricultural sector.
Journal: Applied Economics
Pages: 933-943
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.526582
File-URL: http://hdl.handle.net/10.1080/00036846.2010.526582
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:933-943
Template-Type: ReDIF-Article 1.0
Author-Name: Juan C. Reboredo
Author-X-Name-First: Juan C.
Author-X-Name-Last: Reboredo
Title: The switch from continuous to call auction trading in response to a large intraday price movement
Abstract:
Some European exchanges (e.g. Euronext, Frankfurt and Madrid) make use of
a mechanism to moderate price volatility that was proposed by Madhavan
(1992) as preferable to a trading halt in times of market stress. It
consists of a temporary switch from continuous to call auction trading in
an individual security whenever its price moves beyond predetermined
limits. This article studies whether this mechanism sharpens the
information content of prices, dampens volatility and normalizes trading
volume and intensity. Taking intraday data for the Madrid order driven
continuous market, I find post switch improvements in the information
content of prices and reductions in volatility, especially for thinly
traded stocks. Trading volume and intensity peaked around auctions, but
soon returned to preevent levels.
Journal: Applied Economics
Pages: 945-967
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.526584
File-URL: http://hdl.handle.net/10.1080/00036846.2010.526584
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:945-967
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Jensen
Author-X-Name-First: Frank
Author-X-Name-Last: Jensen
Author-Name: Jesper Andersen
Author-X-Name-First: Jesper
Author-X-Name-Last: Andersen
Author-Name: Carsten Lynge Jensen
Author-X-Name-First: Carsten Lynge
Author-X-Name-Last: Jensen
Title: Investment behaviour in individual nontransferable quota systems
Abstract:
This article studies the investment behaviour of the Danish demersal
fishery in the North Sea. For the study period, this fishery is regulated
by variants of individual nontransferable quotas. It is shown that
interest rates and capital stocks are primary determinants of investments.
Another conclusion is that an aggregated model based on the whole fleet
gives identical results to models based on individual fleets
(disaggregated models) for trawlers and Danish seiners. However, for
netters and other vessels, the aggregated and disaggregated models yield
different results. In addition, the variance of the estimated parameters
is lower in the disaggregated models. This result arises because vessels
in the disaggregated models are more homogeneous. Furthermore, investments
in machinery, electronics and vessels are governed by one year lagged
variables, while investment in gears is governed by present variables for
the Danish demersal fishery in the North Sea.
Journal: Applied Economics
Pages: 969-978
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.528371
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528371
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:969-978
Template-Type: ReDIF-Article 1.0
Author-Name: Terry Robinson
Author-X-Name-First: Terry
Author-X-Name-Last: Robinson
Title: Dyed in the wool? An empirical note on fan loyalty
Abstract:
This article attempts to investigate empirically the strength of
intracity football club support and seeks to test the commonly held belief
among the sports community that supporters will not switch allegiance
between city rivals very readily. To test this phenomenon, data on the
attendances of five English and two Italian city rival clubs is used to
conduct a cointegration analysis. The results imply that a stable
relationship does not exist between the attendance series which throws
doubt on the proposition that supporters of a team are unlikely to switch
their support to a rival club. To test the possibility that this result
could be due to fickle supporters ceasing to attend, a sensitivity
analysis is conducted between attendances and performance.
Journal: Applied Economics
Pages: 979-985
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.528372
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528372
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:979-985
Template-Type: ReDIF-Article 1.0
Author-Name: Madhusudan Datta
Author-X-Name-First: Madhusudan
Author-X-Name-Last: Datta
Title: Service boom in the Indian economy: an analysis of causal influences
Abstract:
The article decomposes the influence behind the growth of service
activities in the Indian economy over the last three decades into three
components -- the final demand effect, input structure effect and
reallocation effect -- and makes empirical assessments thereof. In terms
of the influences, the behaviour of the group of services used basically
as intermediate inputs, designated as category-I services, was distinct
from the rest of heterogeneous services combined as ‘community,
social and personal services’. The study finds that apart from the
final demand effect, the other two influences too played very important
but different roles in different phases of growth.
Journal: Applied Economics
Pages: 987-998
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.528373
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528373
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:987-998
Template-Type: ReDIF-Article 1.0
Author-Name: Moonsung Kang
Author-X-Name-First: Moonsung
Author-X-Name-Last: Kang
Author-Name: Hongshik Lee
Author-X-Name-First: Hongshik
Author-X-Name-Last: Lee
Author-Name: Soonchan Park
Author-X-Name-First: Soonchan
Author-X-Name-Last: Park
Title: Industry-specific effects of antidumping activities: evidence from the US, the European Union and China
Abstract:
This article analyses industry-specific effects of Antidumping (AD)
activities on trade, using the system Generalized Method of Moments (GMM)
in dynamic panel date models. In the process of doing so, this article
selected three frequent AD users, such as the US, the European Union (EU)
and China. Additionally, we chose the metal/steel, chemical and
plastic/rubber industries for the US cases; chemical, metal/steel and
machinery/electronics industries for the EU cases; and the chemical
industry for the Chinese cases. Based on the analyses conducted herein, we
detected positive evidence of industry-specific impacts of AD measures
imposed by the three frequent users.
Journal: Applied Economics
Pages: 999-1008
Issue: 8
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.530223
File-URL: http://hdl.handle.net/10.1080/00036846.2010.530223
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Handle: RePEc:taf:applec:44:y:2012:i:8:p:999-1008
Template-Type: ReDIF-Article 1.0
Author-Name: Alex Acworth
Author-X-Name-First: Alex
Author-X-Name-Last: Acworth
Author-Name: Nicolas de Roos
Author-X-Name-First: Nicolas
Author-X-Name-Last: de Roos
Author-Name: Hajime Katayama
Author-X-Name-First: Hajime
Author-X-Name-Last: Katayama
Title: Substance use and adolescent sexual activity
Abstract:
Using the National Longitudinal Survey of Youth 1997, we examine the
relationship between initiating substance use and youth sexual behaviour.
We employ a combination of panel data and propensity score matching
techniques to control for observed and unobserved heterogeneity. The
results indicate striking differences across gender. For males, initiating
alcohol or marijuana use is positively and significantly associated with
the likelihood of engaging in sexual intercourse and uncontracepted sexual
intercourse. For females, in contrast, there is no robust evidence for
such links.
Journal: Applied Economics
Pages: 1067-1079
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.534074
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534074
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1067-1079
Template-Type: ReDIF-Article 1.0
Author-Name: Hai Fang
Author-X-Name-First: Hai
Author-X-Name-Last: Fang
Author-Name: John A. Rizzo
Author-X-Name-First: John A.
Author-X-Name-Last: Rizzo
Title: Does inequality in China affect health differently in high- versus low-income households?
Abstract:
China's so-called ‘reform and opening up’ policy (Gai Ge
Kai Fang), implemented nearly 30 years ago, has led to tremendous economic
development. China's nominal Gross Domestic Product (GDP) was 3.25
trillion US dollars in 2007, making it the fourth largest economy in the
world. At the same time, income inequality has become quite skewed in
China, inviting considerable criticism. Moreover, the trend towards
greater income inequality persists. Of particular public policy relevance
is the effect of income inequality on health disparities in China,
particularly for low-income households. This study addresses this issue
using a longitudinal dataset from the China Health and Nutrition Survey
(CHNS) over the period 1997 to 2006. Our central finding is that income
inequality affects health differently by socioeconomic status: income
inequality harms individual health among low income households by more
than it does among high income households. More specifically, health is
more adversely affected by greater income inequality for households with
low incomes. China's central government is committed to making further
investments in the health care system. As part of that effort, attention
should be directed at low income households to reduce health inequality,
possibly providing them with a health insurance safety net similar to
Medicaid in USA.
Journal: Applied Economics
Pages: 1081-1090
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.534076
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534076
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1081-1090
Template-Type: ReDIF-Article 1.0
Author-Name: Hui Huang
Author-X-Name-First: Hui
Author-X-Name-Last: Huang
Author-Name: John Whalley
Author-X-Name-First: John
Author-X-Name-Last: Whalley
Title: The form of money demand function and the welfare costs of inflation
Abstract:
In this article we show that the marginal welfare costs of inflationary
is progressively larger with the inflation rate in Bailey's formulation,
but under Baumol--Tobin treatment the opposite applies.
Journal: Applied Economics
Pages: 1091-1092
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.534077
File-URL: http://hdl.handle.net/10.1080/00036846.2010.534077
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1091-1092
Template-Type: ReDIF-Article 1.0
Author-Name: Vani K. Borooah
Author-X-Name-First: Vani K.
Author-X-Name-Last: Borooah
Author-Name: John Mangan
Author-X-Name-First: John
Author-X-Name-Last: Mangan
Title: Measuring competitive balance in sports using generalized entropy with an application to English premier league football
Abstract:
A central issue in the economics of sport is the degree of competitive
balance in sporting contests. The importance attached to competitive
balance is predicated on the belief that it is uncertainty about the
outcomes of sporting contests that attracts spectators and sponsors. In a
perfectly balanced competition, each team would have an equal chance of
winning each match and, therefore, of winning the championship or the
league. By contrast, the absence of competitive balance would mean that
the results of sporting contests would become predictable and attendance
at sporting contests would suffer. The general theme that underpins the
issue of competitive balance is that of inequality. This article proposes
a general measure of competitive balance based on the Generalized Entropy
(GE) approach to measuring inequality and shows how this might be
interpreted in terms of the league's welfare. The measures are applied to
results from 2006 to 2007 season of the English Premier League (EPL).
Journal: Applied Economics
Pages: 1093-1102
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537638
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537638
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1093-1102
Template-Type: ReDIF-Article 1.0
Author-Name: Nada Mora
Author-X-Name-First: Nada
Author-X-Name-Last: Mora
Author-Name: Andrew Logan
Author-X-Name-First: Andrew
Author-X-Name-Last: Logan
Title: Shocks to bank capital: evidence from UK banks at home and away
Abstract:
This article assesses how shocks to bank capital may influence a bank's
portfolio behaviour using novel evidence from a UK bank panel data set
from a period that predates the recent financial crisis. Focusing on the
behaviour of bank loans, we extract the dynamic response of a bank to
innovations in its capital and in its regulatory capital buffer. We find
that innovations in a bank's capital in this (precrisis) sample period
were coupled with a loan response that lasted up to 3 years. The
international presence of UK banks allows us to identify a specific driver
of capital shocks in our data, independent of bank lending to UK
residents. Specifically, we use write-offs on loans to nonresidents to
instrument bank capital's impact on UK resident lending. A fall in capital
brought about a significant drop in lending in particular, to Private
Nonfinancial Corporations (PNFC). In contrast, household lending increased
when capital fell, which may indicate that, in this precrisis period,
banks substituted into less risky assets when capital was short.
Journal: Applied Economics
Pages: 1103-1119
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537639
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537639
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1103-1119
Template-Type: ReDIF-Article 1.0
Author-Name: Don J. Webber
Author-X-Name-First: Don J.
Author-X-Name-Last: Webber
Author-Name: Andrew Mearman
Author-X-Name-First: Andrew
Author-X-Name-Last: Mearman
Title: Students’ perceptions of economics: identifying demand for further study
Abstract:
Most university departments aspire to increase their quantity of
students. The objective of this empirical study is to ascertain whether it
is possible to identify students who would demand more economics study.
Using data on student perceptions of economics and the application of
logistic regression, two step autoclustering, K means
clustering, analysis of variance and Tukey's honestly significant
difference statistical techniques, we reveal distinct clusters of
students, including a small cluster of students who appear to be more open
to further study.
Journal: Applied Economics
Pages: 1121-1132
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537640
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537640
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1121-1132
Template-Type: ReDIF-Article 1.0
Author-Name: G. Thomas Sav
Author-X-Name-First: G. Thomas
Author-X-Name-Last: Sav
Title: Government free riding in the public provision of higher education: panel data estimates of possible crowding out
Abstract:
This article employs panel data on more than 1000 US public colleges and
universities to investigate the effect of private giving on state
government funding. Government free riding is at question and is found to
be active in that private donations partially displace state government
funding at the rate of 83 cents on the dollar. That compares to the 45
cents political substitution of the 1960s but is much diminished from the
$1.07 of the 1980s. Those are aggregate comparisons for all public
institutions. A disaggregated approach in this article additionally
reveals that doctoral granting research universities are somewhat lesser
victims of crowd out in experiencing a 71 cents cut. At master level
colleges and universities and associate 2 year degree granting colleges,
crowding out is estimated to be on the order 87 cents and $1.10,
respectively. Relative to the academic year 2000 to 2001, publicly
controlled colleges and universities are found to experience significant
reductions in state appropriated funding in 2003 to 2004 and 2006 to 2007.
Even accounting for changes in the business cycle and changes in possible
government spending priorities over time, the overall findings support the
persistent effect of this brand of crowding out.
Journal: Applied Economics
Pages: 1133-1141
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537641
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537641
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1133-1141
Template-Type: ReDIF-Article 1.0
Author-Name: Alexis Habiyaremye
Author-X-Name-First: Alexis
Author-X-Name-Last: Habiyaremye
Author-Name: Thomas H. W. Ziesemer
Author-X-Name-First: Thomas H. W.
Author-X-Name-Last: Ziesemer
Title: Export demand elasticities and productivity as determinants of growth: estimates for Mauritius
Abstract:
In this article, we combine the export led and import led growth
hypotheses in a growth model in which the importation of foreign capital
goods and the demand elasticities of own export products explain the
growth opportunities and the technical progress of developing countries.
This model, based on imported capital goods, uses Mauritius’ data
on capital investment, employment, export partners’ growth and
terms of trade to estimate price and income elasticities of export demand,
total factor productivity growth and economies of scale. These
elasticities are then used to assess how the growth in export
partners’ income is converted into domestic growth. The
implications of the presence of low or high export demand elasticities are
discussed by relating them to various strands of trade and growth
literature. Based on the results of this estimation, we also calculate
steady state growth rates, engine and handmaiden effects of growth as well
as the dynamic steady state gains from trade for this latecomer export
economy. The implications of steady state results are also discussed in
the light of the Mauritian employment and growth perspectives.
Journal: Applied Economics
Pages: 1143-1158
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537642
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537642
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1143-1158
Template-Type: ReDIF-Article 1.0
Author-Name: N. Ben David
Author-X-Name-First: N. Ben
Author-X-Name-Last: David
Author-Name: U. Benzion
Author-X-Name-First: U.
Author-X-Name-Last: Benzion
Author-Name: E. Ofir
Author-X-Name-First: E.
Author-X-Name-Last: Ofir
Author-Name: E. Spanier
Author-X-Name-First: E.
Author-X-Name-Last: Spanier
Title: A model for estimating fish population and optimal fishing effort in lakes and rivers
Abstract:
We developed a model for estimating the fish population for various
species in lakes and rivers. Our estimation focuses, in its first step, on
fish species that breed outside the lake. Using the annual outside supply
of fingerlings, natural survival rate and reported amounts of fish caught,
we estimated fish stock. Given the estimated stock for fish bred outside
the lake, we can evaluate the catch rate. Assuming equal catch rates for
other species, and given the amount caught for each species, we are able
to evaluate each species stock. Using the proposed technique, we evaluated
various species stocks in the Sea of Galilee (Lake Kinneret) in Israel.
Using our suggested technique for evaluating fish stock, we calculated the
optimal effort of fishing needed for maximizing steady state profit of the
fishers.
Journal: Applied Economics
Pages: 1159-1168
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537643
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537643
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1159-1168
Template-Type: ReDIF-Article 1.0
Author-Name: Alasdair Brown
Author-X-Name-First: Alasdair
Author-X-Name-Last: Brown
Title: Evidence of in-play insider trading on a UK betting exchange
Abstract:
An open question in market microstructure is whether
‘informed’ traders have an advantage due to access to
private, inside, information; or due to a superior ability to process
public information. In this article we attempt to answer this question
with data from a sports betting exchange taken during play. Uniquely, this
allows us to time-stamp information events to the nearest second, and to
ensure we are observing all relevant information regarding the value of an
asset. We find evidence of inside information but not of a superior
ability to process public information. The first finding suggests that a
subset of the betting population are observing the action before the wider
public (possibly due to delays in the television signal), and betting
using this informational advantage.
Journal: Applied Economics
Pages: 1169-1175
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537644
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537644
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1169-1175
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Thalheimer
Author-X-Name-First: Richard
Author-X-Name-Last: Thalheimer
Title: The demand for slot machine and pari-mutuel horse race wagering at a racetrack-casino
Abstract:
This article expands the limited literature on the demand for casino
(racino) wagering. The focus of this article is on the interrelationship
of the demands for slot machine and horse race wagering at a racino.
Wagering demand models were estimated for the two racino products; slot
machine gaming and pari-mutuel horse racing. Horse race and slot machine
wagering both decreased when a competing casino entered the racino's
market area. As in earlier studies, slot machine customers did not, on
net, bet on horse racing but horse racing customers did bet on slot
machines. Pari-mutuel horse race wagering fell 21% after slot machines
were introduced and 16% following the introduction of table games. On the
other hand, slot machine wagering increased 13% in the presence of live
horse racing and 14% in the presence of import simulcast horse racing.
Slot machine wagering fell 8% with the introduction of table games. This
has important policy implications if stakeholder shares of table game
revenue are different than their corresponding slot machines shares. Those
with lower table game shares may lose net gaming revenue if table games do
not produce enough revenue to offset the expected loss of slot machine
revenue.
Journal: Applied Economics
Pages: 1177-1191
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537645
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537645
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1177-1191
Template-Type: ReDIF-Article 1.0
Author-Name: Jörg Franke
Author-X-Name-First: Jörg
Author-X-Name-Last: Franke
Title: The incentive effects of levelling the playing field -- an empirical analysis of amateur golf tournaments
Abstract:
Levelling the playing field is an important policy instrument to
guarantee an equitable competition among heterogeneous individuals.
However, the incentive effects of those policies are usually not
explicitly addressed in empirical studies. In this article the performance
in amateur golf tournaments is analysed to gain insights into the
incentive effects of those types of policies. The empirical analysis takes
advantage of the fact that tournaments in amateur golf are of two
distinctive types that apply different scoring rules: while one scoring
rule is based on gross scores, i.e. the total number of strokes of a
player, the second scoring rule is based on net scores where the total
number of strokes is normalized with respect to the respective player's
handicap. Performance comparisons of players who participated in both
types of tournaments suggest that levelling the playing field, as in
tournaments based on net score, has positive and significant performance
effects.
Journal: Applied Economics
Pages: 1193-1200
Issue: 9
Volume: 44
Year: 2012
Month: 3
X-DOI: 10.1080/00036846.2010.537646
File-URL: http://hdl.handle.net/10.1080/00036846.2010.537646
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Handle: RePEc:taf:applec:44:y:2012:i:9:p:1193-1200
Template-Type: ReDIF-Article 1.0
Author-Name: Ritesh Banerjee
Author-X-Name-First: Ritesh
Author-X-Name-Last: Banerjee
Author-Name: Ethan Cohen-Cole
Author-X-Name-First: Ethan
Author-X-Name-Last: Cohen-Cole
Title: Competition and the cost of health care
Abstract:
In this article, we investigate pricing power in the US health care
market. Using new data on state-level health care cost, as well as
combining public and previously unused data on concentration among
insurers and providers, we find a link between the market concentration of
insurance carriers and total costs. We also present suggestive evidence
that concentration in the hospital sector does not relate to total costs;
however, it may lead to decreased health care access. The implications are
large: we find that a 1 percentage point increase in the average market
share of the largest five carriers in a market leads to a 10% increase in
expenditures.
Journal: Applied Economics
Pages: 1201-1207
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539537
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539537
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1201-1207
Template-Type: ReDIF-Article 1.0
Author-Name: Masakazu Hojo
Author-X-Name-First: Masakazu
Author-X-Name-Last: Hojo
Title: Shared literacy and employment in the nonfarm sector
Abstract:
This article empirically examines the external effect of family literacy
on the earnings of illiterate workers. Considering recent findings that
rural nonfarm sectors in developing countries are becoming more important
in determining the welfare of households, this article tests two
hypotheses: (1) an illiterate person living with literate members (i.e. a
proximate illiterate person) is more likely to find a job
in the nonfarm sector than is an illiterate person living with no literate
person (i.e. an isolated illiterate person) and (2) wage
income of a proximate illiterate worker is higher than that of an isolated
illiterate worker. The empirical results suggest that proximate illiterate
persons earn higher wages than isolated illiterate persons because they
are more likely to be employed in the nonfarm sector.
Journal: Applied Economics
Pages: 1209-1217
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539538
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539538
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1209-1217
Template-Type: ReDIF-Article 1.0
Author-Name: Doyoung Kim
Author-X-Name-First: Doyoung
Author-X-Name-Last: Kim
Title: On the determinants of director additions and removals
Abstract:
This article studies director additions and removals for S&P 500 firms
during the period 2000 to 2003. It finds that firms with smaller board
size than estimated efficient levels add more and remove fewer directors
than firms with larger board size. It also finds that firms with lower
board independence than estimated efficient levels add more and remove
fewer independent directors, and add fewer and remove more nonindependent
directors than firms with higher board independence. These findings
suggest that firms add and remove directors to adjust board structure in a
manner consistent with economic efficiency.
Journal: Applied Economics
Pages: 1219-1233
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539539
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539539
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1219-1233
Template-Type: ReDIF-Article 1.0
Author-Name: St鰨ane Mussard
Author-X-Name-First: St鰨ane
Author-X-Name-Last: Mussard
Author-Name: Luc Savard
Author-X-Name-First: Luc
Author-X-Name-Last: Savard
Title: The Gini multi-decomposition and the role of Gini's transvariation: application to partial trade liberalization in the Philippines
Abstract:
This article proposes a unified technique of the Gini decomposition. The
Gini multi-decomposition is a combination of the income source
decomposition and the subgroup decomposition. This technique is applied on
reference situation and simulated scenarios for partial trade
liberalisation in Philippines, and is extended to different orderings to
capture a wide range of between-group indicators. We simulate variations
in income source distributions for seven educational groups in the
Philippines, in order to measure the inequality variations between a
reference situation and a post simulation one with positive externalities
due to public expenditures on the private sector productivity.
Journal: Applied Economics
Pages: 1235-1249
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539540
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539540
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1235-1249
Template-Type: ReDIF-Article 1.0
Author-Name: Alex Coad
Author-X-Name-First: Alex
Author-X-Name-Last: Coad
Author-Name: Tom Broekel
Author-X-Name-First: Tom
Author-X-Name-Last: Broekel
Title: Firm growth and productivity growth: evidence from a panel VAR
Abstract:
This article offers new insights into the processes of firm growth by
applying a reduced-form Vector Autoregression (VAR) model to longitudinal
panel data on French manufacturing firms. We observe the co-evolution of
key variables such as growth of employment, sales and gross operating
surplus, as well as growth of multifactor productivity. It seems that
employment growth is negatively associated with subsequent growth of
productivity. This latter result, however, is sensitive to our choice of
productivity indicator, i.e. multifactor productivity or labour
productivity.
Journal: Applied Economics
Pages: 1251-1269
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539542
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539542
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1251-1269
Template-Type: ReDIF-Article 1.0
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Regional and outward economic integration in South-East Asia
Abstract:
The subject of this article tackles macroeconomic integration of the
South-East Asian countries South Korea, Singapore and Taiwan.
Economically, the analysis is based on notions of stochastic long-run
convergence and business cycle synchrony in the Gross Domestic Products
(GDPs). Relevant tests for cointegration and common serial correlation
features reveal a high degree of coherence in long-run growth and
medium-run fluctuations. This allows extracting a common stochastic growth
trend and a common business cycle. Further analysis shows that both these
components are subject to stronger influences from the US than from Japan.
Convergence towards these matured economies conspicuously appears since
the 1990s.
Journal: Applied Economics
Pages: 1271-1283
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539543
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539543
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1271-1283
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco de Assis Costa
Author-X-Name-First: Francisco
Author-X-Name-Last: de Assis Costa
Title: Corporations and local economies in the Brazilian Amazon: the impacts of the mining sectors scheduled investments in Southeastern Pará (2004--2010)
Abstract:
Southeastern Pará is an extraordinarily dynamic region. There were
large cattle ranching projects, financed in the 1960s. Expansion of
peasant agriculture, mineral projects and gold prospecting followed the
ranching projects. Also important structural transformations reinforced
the role of the urban centres and the local rural bases in the logistics
of new economic sectors conditioned by the presence of Companhia Vale do
Rio Doce (CVRD), in the region since 1985. This article presents the
results of an input--output analysis of the investment programme of CVRD
from year 2004 up to 2010. The main findings are that the mineral sector
has achieved a considerable influence over the economy of Southeastern
Pará, so that during the cycle of investments each 1% in the growth
of the mineral production creates growth possibilities of about 0.83% for
the agricultural sector and about 0.86% for the local urban sectors.
Considering just the production growth, a percentile point will imply
growth at, respectively, 0.73% and 0.76% for those sectors. For the
economy of the rest of the state of Pará, those elasticities would
be, incorporating the investments, 0.80% and, without them, 0.68%. For the
economy of the rest of Brazil they would be, respectively, 0.88% and
0.78%.
Journal: Applied Economics
Pages: 1285-1302
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539544
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539544
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1285-1302
Template-Type: ReDIF-Article 1.0
Author-Name: Ariaster B. Chimeli
Author-X-Name-First: Ariaster B.
Author-X-Name-Last: Chimeli
Author-Name: Roy G. Boyd
Author-X-Name-First: Roy G.
Author-X-Name-Last: Boyd
Author-Name: Darius M. Adams
Author-X-Name-First: Darius M.
Author-X-Name-Last: Adams
Title: International timber markets and tropical deforestation: the evidence from prices
Abstract:
Some scholars suggest that global timber markets, especially those
involving high value species, are a leading cause of tropical
deforestation. Despite limited empirical evidence, this hypothesis rests
on the assumption that global timber markets respond to a common
equilibrating mechanism that provides strong enough incentives for loggers
in the tropical regions of the world. This article develops a simple model
and taps into a unique data set on timber prices of hardwood and softwood
in leading markets to test the global timber markets hypothesis. While we
find evidence of a global equilibrating mechanism with potentially
significant economic incentives to affect tropical deforestation, our
results do not endorse the common conjecture in the literature that timber
price shocks in developed countries lead to a homogeneous response in
terms of deforestation everywhere in the tropical world. Instead, they
invite further development of structural global timber market models to
assess the linkages between markets and the consequences of such linkages
to deforestation.
Journal: Applied Economics
Pages: 1303-1314
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539545
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539545
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1303-1314
Template-Type: ReDIF-Article 1.0
Author-Name: Sven Schreiber
Author-X-Name-First: Sven
Author-X-Name-Last: Schreiber
Title: Estimating the natural rate of unemployment in euro-area countries with co-integrated systems
Abstract:
Given that for France, Germany, Italy and the Netherlands the
unemployment rates are best classified as I(1), we apply
permanent-transitory decompositions based on co-integrated Vector
Autoregressions (VAR) with relevant variables (labour productivity, wages,
tax wedges, foreign relative prices) to estimate the time-varying natural
unemployment rates. In general all variables seem to matter, and the
results are quite different from published Organization for Economic
Co-operation and Development (OECD) Nairus. Our implied unemployment gaps
are better than the OECD gaps in predicting unemployment changes and
inflation gaps, but they are (except for Italy) as bad as the OECD gaps
for forecasting inflation changes.
Journal: Applied Economics
Pages: 1315-1335
Issue: 10
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539548
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539548
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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1315-1335
Template-Type: ReDIF-Article 1.0
Author-Name: R. Pr駥t
Author-X-Name-First: R.
Author-X-Name-Last: Pr駥t
Author-Name: P. Waelbroeck
Author-X-Name-First: P.
Author-X-Name-Last: Waelbroeck
Title: What is the cost of low participation in French timber auctions?
Abstract:
How much is the standing timber from public forests worth? To estimate
the value of a timber lot, we adopt the transaction evidence appraisal
approach using data from timber auctions in Lorraine (Eastern France)
accounting for the facts that: (i) the seller's reserve prices are secret,
(ii) there remain many unsold lots and (iii) the number of bidders varies
across auctions. Taking into account the endogenous participation in our
hedonic price equation for the highest bid, we estimate that, compared to
lots that receive two bids, the highest bid is 22% lower when there is
only one bid and 37% higher when there are three or more bids.
Journal: Applied Economics
Pages: 1337-1346
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539546
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539546
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1337-1346
Template-Type: ReDIF-Article 1.0
Author-Name: ByungWoo Kim
Author-X-Name-First: ByungWoo
Author-X-Name-Last: Kim
Title: Growth regression revisited: R&D promotes convergence?
Abstract:
Barro and Sala-i-Martin (2004) analysed the empirical determinants of
growth. They used a cross-sectional empirical framework that considered
growth from two kinds of factors, initial levels of steady-state variables
and control variables (e.g. investment ratio, infrastructure). Recent
literature suggests that Generalized Method of Moments (GMM) estimation of
dynamic panel data models produce more efficient and consistent estimates
than Ordinary Least Squares (OLS) or pooled regression models. Following
Cellini (1997), we also consider co-integration and error-correction
methods for the growth regression. We extend the previous research for
Asian countries of Kim (2009) to developed countries. Following the
implications of semi-endogenous growth theory, we regressed output growth
on a constant, 1-year lagged output (initial income) and the determinants
of steady-state income (investment rate, population growth, the quadratic
(or linear) function of Research and Development (R&D) intensity). The
regression suggests faster significant convergence. This contradicts with
that of Mankiw et al. (1992), which asserts that the
speed is lower when considering broad concept of capital including human
capital. The coefficients for the determinants of steady-state income,
especially for the quadratic function of R&D intensity, are significant
and occur in the expected direction. Our results suggest that adopting
appropriate growth policy, an economy can grow more rapidly through
transition dynamics or changing fundamentals.
Journal: Applied Economics
Pages: 1347-1362
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539547
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539547
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1347-1362
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Caragliu
Author-X-Name-First: Andrea
Author-X-Name-Last: Caragliu
Author-Name: Peter Nijkamp
Author-X-Name-First: Peter
Author-X-Name-Last: Nijkamp
Title: The impact of regional absorptive capacity on spatial knowledge spillovers: the Cohen and Levinthal model revisited
Abstract:
We design a conceptual framework for linking two approaches: absorptive
capacity and spatial Knowledge Spillovers (KSs). Regions produce new
knowledge, but only part of it is efficiently adopted in the economy; the
share of efficiently adopted technology depends on cognitive capital. Our
dataset is based on a panel of European regions over the period 1999 to
2006, combining data from EUROSTAT and the European Values Study (EVS). We
test the hypothesis that insufficient levels of cognitive capital hamper
the capability of regions to fully exploit new knowledge. Results show
that a lower regional absorptive capacity increases KS towards surrounding
areas, hampering the regions’ capability to decode and efficiently
exploit new knowledge, both locally produced and originating from outside.
Journal: Applied Economics
Pages: 1363-1374
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539549
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539549
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1363-1374
Template-Type: ReDIF-Article 1.0
Author-Name: Akram Masoud Haddad
Author-X-Name-First: Akram Masoud
Author-X-Name-Last: Haddad
Author-Name: Yousef Shahwan
Author-X-Name-First: Yousef
Author-X-Name-Last: Shahwan
Title: Optimization agricultural production under financial risk of water constraint in the Jordan Valley
Abstract:
Some sectors of the Jordanian agriculture have reached, over the last few
years, a considerably high standard of competitiveness. Such evolution
occurred in a period where the government started to have a more passive
position and, producers, in turn, tried themselves to modify the
production structures, adapting to the forces of the market and to the
demands for internal and external competitiveness. Jordan Valley (JV) is
considered as a basket of fruit and vegetables of Jordan that allows
production of seasonal crops. The main constraint to agriculture in JV is
water availability. Target Minimization of Total Absolute Deviation
(MOTAD) model was used to evaluate three levels of water availability and
these are: current normal situation, 50% and 30% water reduction. It was
evident that crops behaviour under risk condition in JV differs according
to the risk associated with production process, both for season and amount
of water available for irrigation where the impact of water reduction was
obvious in winter (spring) farming season.
Journal: Applied Economics
Pages: 1375-1385
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.539550
File-URL: http://hdl.handle.net/10.1080/00036846.2010.539550
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1375-1385
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Paul Chavas
Author-X-Name-First: Jean-Paul
Author-X-Name-Last: Chavas
Author-Name: Bradford Barham
Author-X-Name-First: Bradford
Author-X-Name-Last: Barham
Author-Name: Jeremy Foltz
Author-X-Name-First: Jeremy
Author-X-Name-Last: Foltz
Author-Name: Kwansoo Kim
Author-X-Name-First: Kwansoo
Author-X-Name-Last: Kim
Title: Analysis and decomposition of scope economies: R&D at US research universities
Abstract:
This article uses a multi output production function to analyse economies
of scope between patents and R&D in US research universities. It evaluates
the tradeoffs and/or synergies that arise between traditional university
research outputs (articles and doctorates) and academic patents. It also
investigates the sources of economies of scope and the relative roles of
complementarity, scale and convexity. Nonparametric Data Envelopment
Analysis (DEA) estimates of scope economies using R&D input and output
data from 92 research universities show significant economies of scope
between articles and patents but only modest complementarities except in a
few cases. The analysis shows how scale effects (for small universities)
and convexity effects can contribute to economies of scope.
Journal: Applied Economics
Pages: 1387-1404
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.541151
File-URL: http://hdl.handle.net/10.1080/00036846.2010.541151
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1387-1404
Template-Type: ReDIF-Article 1.0
Author-Name: Seong-Hoon Cho
Author-X-Name-First: Seong-Hoon
Author-X-Name-Last: Cho
Author-Name: Suhyun Jung
Author-X-Name-First: Suhyun
Author-X-Name-Last: Jung
Author-Name: Roland K. Roberts
Author-X-Name-First: Roland K.
Author-X-Name-Last: Roberts
Author-Name: Seung Gyu Kim
Author-X-Name-First: Seung Gyu
Author-X-Name-Last: Kim
Title: Interrelationship between poverty and the wildland--urban interface in metropolitan areas of the Southern US
Abstract:
This research disentangles the relationship between Wildland--Urban
Interface (WUI) area and poverty in metropolitan areas of the Southern US
where urban sprawl has intensified and high-poverty regions have
persisted. Results confirm that the enlargement of WUI areas increases
urban poverty, which in turn causes WUI areas to expand. This finding
validates the underlying hypothesis: expansion of the WUI excludes people
in poor inner-city neighbourhoods from educational and economic
opportunities that occur in suburban areas and the problems related to
inner-city poverty push the rich away from the inner city.
Journal: Applied Economics
Pages: 1405-1416
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.541392
File-URL: http://hdl.handle.net/10.1080/00036846.2010.541392
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1405-1416
Template-Type: ReDIF-Article 1.0
Author-Name: Jos順鲥s
Author-X-Name-First: Jos頍
Author-X-Name-Last: F鲥s
Author-Name: Arnaud Reynaud
Author-X-Name-First: Arnaud
Author-X-Name-Last: Reynaud
Author-Name: Alban Thomas
Author-X-Name-First: Alban
Author-X-Name-Last: Thomas
Title: Water reuse in Brazilian manufacturing firms
Abstract:
This article examines the factors influencing manufacturing firms’
water reuse decision and analyses whether the structure of intake water
demand differs between firms that adopt water reuse practices and those
which do not. The first stage of the estimation model involves a Probit
analysis of the water reuse decision and the second stage employs an
endogenous switching regression to estimate the intake water demand
equations. Results suggest that water charges may act as an effective
mechanism in inducing firms to undertake water reuse investments and in
reducing intake water demand. Estimates of the water demand price
elasticities indicate that plants that reuse water are more sensitive to
water price increases than plants without access to reuse technologies.
Journal: Applied Economics
Pages: 1417-1427
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543070
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543070
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1417-1427
Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Shan Chen
Author-X-Name-First: Yu-Shan
Author-X-Name-Last: Chen
Author-Name: Bi-Yu Chen
Author-X-Name-First: Bi-Yu
Author-X-Name-Last: Chen
Title: Patent indicators as output variables of DEA to evaluate the efficiency of the computer communication equipment industry in United States
Abstract:
This study uses Data Envelopment Analysis (DEA) and several statistical
approaches to evaluate the efficiency of the computer communication
equipment industry in the US from the perspective of patent performance.
There are two output variables -- patent counts and patent citations --
and three input variables -- total assets, R&D expenditures and employee
productivity -- in this study. The efficiency scores of the Charnes,
Cooper and Rhodes (CCR) and Banker, Charnes and Cooper (BCC) models in
this industry are 17.21% and 24.56%. Besides, this study finds out that
there is ‘the advantage of firm size’ for patent
performance, and demonstrates that R&D expenditures and employee
productivity have positive effects on patent performance in this industry.
Furthermore, this study applies cluster analysis to divide the sample into
three groups named ‘Giant Enterprises’, ‘Indistinct
Enterprises’ and ‘Ameba Enterprises’. This study
points out that ‘Indistinct Enterprises’ have the worst
efficiency, because ‘Giant Enterprises’ have the advantages
of firm size, R&D resources and employee productivity and ‘Ameba
Enterprises’ possess the advantage of flexibility, but
‘Indistinct Enterprises’ don’t have any advantage.
Journal: Applied Economics
Pages: 1429-1432
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543071
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543071
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1429-1432
Template-Type: ReDIF-Article 1.0
Author-Name: Yuan-Ming Lee
Author-X-Name-First: Yuan-Ming
Author-X-Name-Last: Lee
Author-Name: Kuan-Min Wang
Author-X-Name-First: Kuan-Min
Author-X-Name-Last: Wang
Title: Searching for a better proxy for business cycles: with supports using US data
Abstract:
This study revises the original Current Depth of Recession (CDR) to prove
that the Modified CDR (MCDR) is more suitable as a threshold variable than
the CDR. We rebuild the CDR indicator and adjust its positive and negative
ranges with the estimation results of the Threshold Autoregressive (TAR)
model. We construct two TAR models utilizing CDR and MCDR as threshold
variables, respectively. Estimation and test results of the root mean
square error, Theil's inequality coefficient and the Diebold-Mariano (DM,
1995) test suggest that MCDR performs better as a threshold variable than
CDR.
Journal: Applied Economics
Pages: 1433-1442
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543073
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543073
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1433-1442
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: A re-examination of the unbiased forward rate hypothesis in the presence of multiple unknown structural breaks
Abstract:
We test the Unbiased Forward Rate (UFR) hypothesis using new tests for
cointegration developed by Hatemi-J (2008a) that allows for multiple
unknown structural breaks. We analyse the Australian dollar (AUD), Euro
(EUR), British pound (GBP) and Japanese yen (JPY) (versus the US dollar
(USD)) spot rates and forward rates relationship during the period 5
January 1999 to 28 December 2006. We find that the UFR does hold when the
effects of the unknown structural breaks are taken into account. The
parameters that we obtained were close to unity; hence, taking into
account transaction cost and the existence of a risk premium, earning
arbitrage profits may still not be possible. Thus, the markets for these
currencies may still be considered as efficient.
Journal: Applied Economics
Pages: 1443-1448
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543075
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543075
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1443-1448
Template-Type: ReDIF-Article 1.0
Author-Name: M. Gartell
Author-X-Name-First: M.
Author-X-Name-Last: Gartell
Title: The college-to-work transition during the 1990s: evidence from Sweden
Abstract:
This article analyses the time it takes for Swedish college graduates to
start a full time job that lasts for 6 months or more. The focus is on the
transition over time during the period 1991 to 1999. This period covers
both upturns and downturns of the business cycle, providing a unique
opportunity to consider the importance of the timing of graduation. The
results show that the risk of unemployment and the unemployment duration
have varied considerably with the business cycle, both within and between
cohorts. For example, the field of education is of more importance for the
outcomes during recessions. Further, the relative risk of unemployment has
decreased over time for individuals with the highest degree of education
whereas the unemployment duration has increased, indicating that the
selection into unemployment for this group may have changed over time.
This is interesting, not least in the light of the sharp expansion of the
higher educational system during the study period.
Journal: Applied Economics
Pages: 1449-1469
Issue: 11
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543078
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543078
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Handle: RePEc:taf:applec:44:y:2012:i:11:p:1449-1469
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Gee Lin
Author-X-Name-First: Chung-Gee
Author-X-Name-Last: Lin
Author-Name: Yu-Shan Wang
Author-X-Name-First: Yu-Shan
Author-X-Name-Last: Wang
Title: Evaluating natural resource projects with embedded options and limited reserves
Abstract:
This study proposes a Dynamic Option Simulation (DOS) approach to
evaluate natural resource investment projects that contain several
embedded options and limited reserves. To construct a practical pricing
model, DOS combines simulation and dynamic programming techniques that can
value natural resource investments with multi-variable, early exercise,
various embedded options and finite reserve properties. A copper mine
project offers a demonstration; the mine holder may temporarily close,
reopen and abandon the mine at specific times before the expiration date.
The mine holder may also accelerate mining speed to be optimal, referred
to as the acceleration option. Numerical analyses of the copper price and
interest rate effects on the copper mine value suggest that DOS can
efficiently assess complex, multiple-variable, American-style real options
problems.
Journal: Applied Economics
Pages: 1471-1482
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543076
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543076
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1471-1482
Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Hinloopen
Author-X-Name-First: Jeroen
Author-X-Name-Last: Hinloopen
Author-Name: Charles van Marrewijk
Author-X-Name-First: Charles
Author-X-Name-Last: van Marrewijk
Title: Power laws and comparative advantage
Abstract:
Using a comprehensive international trade data set we document empirical
Power Laws (PLs) for the distribution of the interaction between countries
as measured by revealed comparative advantage. Using the recently
developed estimator by Gabaix and Ibragimov (2011), we find strong
evidence in favour of PLs along the time, country and sector dimension for
three different levels of data aggregation. This finding is not predicted
by any of the existing trade theories. The estimated PL exponents
characterizing the distribution of revealed comparative advantage are
stable over time but differ between countries and sectors. These
differences are related empirically to country and sector characteristics,
including population size, Gross Domestic Product (GDP) and factor
intensities.
Journal: Applied Economics
Pages: 1483-1507
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543079
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543079
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1483-1507
Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Chern Su
Author-X-Name-First: Yong-Chern
Author-X-Name-Last: Su
Author-Name: Han-Ching Huang
Author-X-Name-First: Han-Ching
Author-X-Name-Last: Huang
Author-Name: Shiue-Fang Lin
Author-X-Name-First: Shiue-Fang
Author-X-Name-Last: Lin
Title: Dynamic relations between order imbalance, volatility and return of top gainers
Abstract:
Investors have been working hard to find the best trading strategy.
Previous studies suggest that order imbalance can be a state variable in
explaining cross sectional stock return. In this article, we examine
dynamic relations between order imbalance, volatility and stock return of
top gainers. Then, we develop an order imbalance based trading strategy
and explain the causality. We employ a time varying Generalized
Autoregressive Conditional Heteroscedasticity (GARCH) model to investigate
intraday dynamics among order imbalance, volatility and return. A
significantly negative relation between order imbalance and volatility has
been documented. The leverage effect proposed by Christie (1982) could
explain the above result. Current period order imbalance explains current
period volatility and stock return. Contemporaneous order imbalance has a
significantly positive and lag-one order imbalance has a significantly
negative influence on stock return. Time span of data and responsibility
of market maker explain this phenomenon. Finally, we develop a profitable
order imbalance based trading strategy. To explore the profitability of
our trading strategy, we examine the causal relationship between return
and order imbalance. We find that order imbalance is a good indicator for
price discovery. Moreover, order imbalance is a better indicator for
predicting returns in large firm size quartile.
Journal: Applied Economics
Pages: 1509-1519
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543080
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543080
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1509-1519
Template-Type: ReDIF-Article 1.0
Author-Name: Bryan C. McCannon
Author-X-Name-First: Bryan C.
Author-X-Name-Last: McCannon
Title: The value of multiple reviews
Abstract:
Expert opinion aids consumers purchasing a good they have no personal
experience with. Previous research has found little to no impact of expert
opinion on price. Evidence from panels of cigar reviewers shows that the
explanatory power of the experts’ rating improves as more reviews
are used.
Journal: Applied Economics
Pages: 1521-1525
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543081
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543081
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1521-1525
Template-Type: ReDIF-Article 1.0
Author-Name: Boris Lokshin
Author-X-Name-First: Boris
Author-X-Name-Last: Lokshin
Author-Name: Pierre Mohnen
Author-X-Name-First: Pierre
Author-X-Name-Last: Mohnen
Title: How effective are level-based R&D tax credits? Evidence from the Netherlands
Abstract:
This article examines the impact of the R&D fiscal incentive programme on
R&D by Dutch firms. Taking a factor demand approach, we measure the
elasticity of firm R&D capital accumulation to its user cost. Econometric
models are estimated using a rich unbalanced panel of firm data covering
the period 1996 to 2004 with firm specific R&D user costs varying with tax
incentives. Using the estimated user cost elasticity, we perform a
cost--benefit analysis of the R&D incentive programme. We find some
evidence of additionality suggesting that the level based programme of R&D
incentives in the Netherlands is effective in stimulating firms’
investment in R&D. However, the hypothesis of crowding out can be rejected
only for small firms. The analysis also indicates that the level based
nature of the fiscal incentive scheme leads to a substantial social
deadweight loss.
Journal: Applied Economics
Pages: 1527-1538
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543083
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543083
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1527-1538
Template-Type: ReDIF-Article 1.0
Author-Name: Massoud Metghalchi
Author-X-Name-First: Massoud
Author-X-Name-Last: Metghalchi
Author-Name: Juri Marcucci
Author-X-Name-First: Juri
Author-X-Name-Last: Marcucci
Author-Name: Yung-Ho Chang
Author-X-Name-First: Yung-Ho
Author-X-Name-Last: Chang
Title: Are moving average trading rules profitable? Evidence from the European stock markets
Abstract:
This article examines the profitability of several simple technical
trading rules for 16 European stock markets over the 1990 to 2006 period.
Our results indicate that increasing moving average rules indeed have
predictive power being able to discern recurring price patterns for
profitable trading, even after accounting for the effects of data snooping
bias. To assess the profitability of different technical trading rules and
strategies, we adopt the White's (2000) Reality Check (RC) test that
quantifies the data snooping bias and adjusts for its effects. Our
empirical results also support the hypothesis that technical trading rules
can outperform the buy and hold strategy after accounting for transaction
costs.
Journal: Applied Economics
Pages: 1539-1559
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543084
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543084
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1539-1559
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Georges Prat
Author-X-Name-First: Georges
Author-X-Name-Last: Prat
Title: Arbitrage costs and nonlinear adjustment in the G7 stock markets
Abstract:
This article aims to study stock price adjustments towards fundamentals
due to the existence of arbitrage costs defined as the sum of transaction
costs and a risky arbitrage premium associated with the uncertainty
characterizing the fundamentals. Accordingly, it is shown that a two
regime Smooth Transition Error Correction Model (STECM) is appropriate to
reproduce the dynamics of stock price deviations from fundamentals in the
G7 countries during the period 1969 to 2005. This model takes into account
the interdependences or contagion effects between stock markets.
Deviations appear to follow a quasi random walk in the central regime when
prices are near fundamentals (i.e. when arbitrage costs are greater than
expected arbitrage profits, the mean reversion mechanism is inactive),
while they approach a white noise in the outer regimes (i.e. when
arbitrage costs are lower than expected arbitrage profits, the mean
reversion is active). Interestingly, as expected when arbitrage costs are
heterogeneous, the estimated STECM shows that stock price adjustments are
smooth and that the convergence speed depends on the size of the
deviation. Finally, using two appropriate indicators proposed by Peel and
Taylor (2000), both the magnitudes of under and overvaluation of stock
price and the adjustment speed are calculated per date in the G7
countries. These indicators show that the dynamics of stock price
adjustment are strongly dependent on both the date and the country under
consideration.
Journal: Applied Economics
Pages: 1561-1582
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.543085
File-URL: http://hdl.handle.net/10.1080/00036846.2010.543085
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1561-1582
Template-Type: ReDIF-Article 1.0
Author-Name: Long Liu
Author-X-Name-First: Long
Author-X-Name-Last: Liu
Author-Name: Jan Ondrich
Author-X-Name-First: Jan
Author-X-Name-Last: Ondrich
Author-Name: John Ruggiero
Author-X-Name-First: John
Author-X-Name-Last: Ruggiero
Title: Estimating multiple-input-- multiple-output production functions with an analysis of credit unions
Abstract:
In this article, we develop a methodology to estimate production
functions characterized by multiple inputs and multiple outputs. Aggregate
output is estimated assuming a piecewise-linear production possibility set
and by measuring distance to the boundary using nonparametric techniques.
The parameters of the production function are then estimated in a
second-stage using Ordinary Least Squares (OLS). The primary advantage of
this approach is the ability to measure the output aggregate
nonparametrically. The approach developed in this article is applied to
estimate credit union production. An alternative approach developed by
Vinod (1968) specifies an extended Cobb--Douglas equation and estimates
the parameters using canonical correlation. Our new approach is compared
to Vinod's canonical correlation approach.
Journal: Applied Economics
Pages: 1583-1589
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.548784
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548784
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1583-1589
Template-Type: ReDIF-Article 1.0
Author-Name: Kenji Matsui
Author-X-Name-First: Kenji
Author-X-Name-Last: Matsui
Title: Concentration of marketing channels and brand-level retailer margins: evidence from Japan
Abstract:
This article investigates the impacts of marketing channel concentration
at each distributive channel stage on brand level retailer gross margins.
A unique official Japanese dataset, the National Survey of Prices -- which
reports brand level wholesale prices as well as retail prices of national
brand items in various consumer product categories -- enables us to
estimate the retail margin directly for each specified brand. The most
notable conclusion is that an inverse relationship is found between brand
level retailer margins and the degree of wholesaler concentration, which
is consistent with empirical results in previous marketing and economic
studies that investigated the impacts of manufacturer concentration on
category level retailer margins.
Journal: Applied Economics
Pages: 1591-1601
Issue: 12
Volume: 44
Year: 2012
Month: 4
X-DOI: 10.1080/00036846.2010.548785
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548785
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Handle: RePEc:taf:applec:44:y:2012:i:12:p:1591-1601
Template-Type: ReDIF-Article 1.0
Author-Name: Mark F. Owens
Author-X-Name-First: Mark F.
Author-X-Name-Last: Owens
Author-Name: Charles L. Baum
Author-X-Name-First: Charles L.
Author-X-Name-Last: Baum
Title: The effects of welfare vehicle asset rules on vehicle assets
Abstract:
Before 1996, households were typically ineligible for welfare if they had
assets worth more than $1000, where $1500 from each vehicle's value was
excluded from this determination. However, the 1996 welfare reform act
began allowing states to increase their asset limits and vehicle
exclusions. This may prompt low-income households to reallocate resources
to or from vehicles. We examine the effects of state vehicle asset rules
on vehicle assets. Results show that liberalizing asset rules increases
vehicle assets and that this increase is driven largely by eligible
individuals increasing vehicle assets, with no evidence indicating that
ineligible individuals reduce vehicle assets to become eligible.
Journal: Applied Economics
Pages: 1603-1619
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2010.548783
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548783
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1603-1619
Template-Type: ReDIF-Article 1.0
Author-Name: Wan-Jiun Chen
Author-X-Name-First: Wan-Jiun
Author-X-Name-Last: Chen
Title: The relationships of carbon dioxide emissions and income in a newly industrialized economy
Abstract:
This study investigates the carbon dioxide (CO2) emissions
patterns in coordination with the economic development of Taiwan. The
resulting quadratic relationship between emissions and income are partly
due to the structural change of energy supply in Taiwan, with the
introduction of nuclear energy in 1980 to 1986. This relationship is quite
unique and different from the N-shaped relationships in some developed
countries (de Bruyn and Opschoor, 1997; Friedl and Getzner, 2003). The
CO2 emissions in Taiwan increase with the increasing imports of
raw materials for economic activities and the increasing use of
electricity. There is no evidence that the substantial increase of
Taiwan's service sector contributed to slowing its CO2
emissions.
Journal: Applied Economics
Pages: 1621-1630
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2010.548786
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548786
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1621-1630
Template-Type: ReDIF-Article 1.0
Author-Name: C. D𮠭Mora
Author-X-Name-First: C.
Author-X-Name-Last: D𮠭Mora
Author-Name: A. Triguero-Cano
Author-X-Name-First: A.
Author-X-Name-Last: Triguero-Cano
Title: Why do some firms contract out production? Evidence from firm-level panel data
Abstract:
This article examines which factors determine outsourcing decision using
firm level data. According to the theoretical and empirical literature,
firm, industry and market characteristics influence the likelihood of
contracting out. We try to identify which firm characteristics are
prerequisites for becoming an outsourcer. Using a dynamic panel data
probit model, our results show that firms with previous subcontracting
experience, higher wages, frequent market changes, R&D activities, product
differentiation, large size and exporter status are more likely to engage
in outsourcing.
Journal: Applied Economics
Pages: 1631-1644
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2010.548787
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548787
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1631-1644
Template-Type: ReDIF-Article 1.0
Author-Name: Ather H. Akbari
Author-X-Name-First: Ather H.
Author-X-Name-Last: Akbari
Author-Name: Yigit Aydede
Author-X-Name-First: Yigit
Author-X-Name-Last: Aydede
Title: Effects of immigration on house prices in Canada
Abstract:
From the turn of the present century until late 2008, house prices in
some developed countries, including Canada, rose sharply compared to the
increases in their per capita incomes. Some in the public
circles of these countries argue that immigration fueled this rise. Each
year, Canada admits about 225 000 immigrants, but information on
the effect of immigration on house prices in this country is lacking. Our
extensive econometric analysis based on panel data at census division
levels obtained from the 1996, 2001 and 2006 population censuses indicates
a statistically significant but small effect of immigration on prices of
privately owned dwellings in Canada. An out migration of the native born
from the areas where new immigrants settle, or an increased supply of
housing due to expectations of higher demand in those areas may have
caused this result.
Journal: Applied Economics
Pages: 1645-1658
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2010.548788
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548788
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1645-1658
Template-Type: ReDIF-Article 1.0
Author-Name: Lota D. Tamini
Author-X-Name-First: Lota D.
Author-X-Name-Last: Tamini
Author-Name: Bruno Larue
Author-X-Name-First: Bruno
Author-X-Name-Last: Larue
Author-Name: Gale West
Author-X-Name-First: Gale
Author-X-Name-Last: West
Title: Technical and environmental efficiencies and best management practices in agriculture
Abstract:
An Input Distance Function (IDF) is estimated to empirically evaluate and
analyse the technical and environmental efficiencies of 210 farms located
in the Chaudière watershed (Quebec), where water quality problems are
particularly acute because of the production of undesirable outputs that
are jointly produced with agricultural products. The true IDF is
approximated by a flexible translog functional form estimated using a full
information maximum likelihood method. Technical and environmental
efficiencies are disaggregated across farms and account for spatial
variations. Our results show that there is a significant correlation
between the two efficiencies. The IDF is used to compute the cumulative
Malmquist productivity index and the Fisher index. The two indices are
used to measure changes in technology, profitability, efficiency and
productivity in response to the adoption of two selected Best Management
Practices (BMPs) whose objective is to reduce water pollution. We found
significant differences across BMPs regarding the direction and the
magnitude of their effect.
Journal: Applied Economics
Pages: 1659-1672
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2010.548789
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548789
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1659-1672
Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Dacuycuy
Author-X-Name-First: Lawrence
Author-X-Name-Last: Dacuycuy
Title: Parametric and semiparametric model representations of the conditional mean of wages: do they make a difference against nonparametric ones?
Abstract:
This study is concerned with the validation of parametric functional
representations of the conditional mean of wages using Philippine data.
This is done in the light of studies confirming relative weaknesses
associated with parametric approaches to the modelling of human capital
earnings functions (Zheng, 2000; Heckman et al.,
2003; Lemieux, 2003; Miles and Mora, 2003). Extending the approaches in
Lemieux (2003), Zheng (2000) and Miles and Mora (2003), we conduct
consistent specification tests not only on parametric functional forms but
also on the semiparametric partially linear model to verify the effect of
modelling choice on the schooling-earnings as well as the
experience-earnings relationships. Test results indicate that parametric
models may still be valid representations of the wage function. In some
instances, the semiparametric partially linear wage function holds promise
as a modelling alternative to parametric models.
Journal: Applied Economics
Pages: 1673-1684
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2010.548790
File-URL: http://hdl.handle.net/10.1080/00036846.2010.548790
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1673-1684
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Aβmann
Author-X-Name-First: Christian
Author-X-Name-Last: Aβmann
Title: Determinants and costs of current account reversals under heterogeneity and serial correlation
Abstract:
Using large panel data sets for analysis of determinants and costs of
reversals asks for controls of latent heterogeneity among countries. This
article performs a Bayesian analysis, which allows for a parsimonious yet
flexible handling of country specific heterogeneity via random
coefficients and serially correlated errors. Consideration of persistence
within the employed macroeconomic data is important to gauge the impact of
explaining variables suggested by theory correctly. Bayesian specification
tests provide evidence in favour of models incorporating heterogeneity and
serial correlation. The results suggest that costs of reversals are
overestimated, when country specific heterogeneity is neglected and stress
the importance of external variables in explaining current account
reversals. Results are checked for robustness against the underlying
reversal definition.
Journal: Applied Economics
Pages: 1685-1700
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554370
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554370
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1685-1700
Template-Type: ReDIF-Article 1.0
Author-Name: Jo-Hui Chen
Author-X-Name-First: Jo-Hui
Author-X-Name-Last: Chen
Author-Name: Wan-Chieh Tsai
Author-X-Name-First: Wan-Chieh
Author-X-Name-Last: Tsai
Title: A comparison of international income inequality: an ordered probit model analysis
Abstract:
In this study, the ordered probit model with marginal effect was applied
to examine the key elements that influence changes in the Gini levels. The
empirical results indicated that export incentives and poverty have a
positive impact on the Gini levels. Moreover, the marginal effect revealed
that export incentives increase income inequality for countries with
higher inequality and reduce inequality for those countries with a
relatively even income distribution. Likewise, the study found that the
Asian Pacific Economic Cooperation (APEC) and the EU countries move from
inequality to equality more efficiently than countries in the Latin
American Integration Association (LAIA).
Journal: Applied Economics
Pages: 1701-1716
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554371
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554371
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1701-1716
Template-Type: ReDIF-Article 1.0
Author-Name: Hau Chyi
Author-X-Name-First: Hau
Author-X-Name-Last: Chyi
Title: The 1993 EITC expansion and low-skilled single mothers’ welfare use decision
Abstract:
Previous studies on low-skilled single mothers focus generally either on
the binary welfare use or work decision. However, work among welfare
participants has increased steadily since the mid-1990s. This study
estimates the role of the 1993 Earned Income Tax Credit (EITC) expansion
on the decline of welfare caseloads using a bivariate probit model. Using
monthly Survey of Income and Program Participation (SIPP) information, I
find that the 1993 EITC expansion has at least the same effect on reducing
welfare use as the welfare reform initiatives. Moreover, the elasticity
estimates indicate that single mothers, especially those who were not
employed and dependent solely on welfare before the expansion, were the
most responsive to the policy initiatives. Finally, the increase in work
among welfare participants is due to the relative ineffectiveness of the
policies in reducing the net population of those who are on welfare and
work simultaneously.
Journal: Applied Economics
Pages: 1717-1736
Issue: 13
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554372
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554372
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:13:p:1717-1736
Template-Type: ReDIF-Article 1.0
Author-Name: Jasim Al-Ajmi
Author-X-Name-First: Jasim
Author-X-Name-Last: Al-Ajmi
Author-Name: J. H. Kim
Author-X-Name-First: J. H.
Author-X-Name-Last: Kim
Title: Are Gulf stock markets efficient? Evidence from new multiple variance ratio tests
Abstract:
The purpose of this article is to test for the Random Walk Hypothesis
(RWH) for seven stock markets in Gulf Cooperation Council (GCC) countries,
and to determine the effect of the correction for thin trading. Three new
multiple variance ratio tests are applied to both observed returns and
returns corrected for thin trading. It is found overall that the RWH does
not hold for the GCC stock markets at both daily and weekly frequencies.
This evidence is particularly strong when daily returns are used, where
the RWH is soundly rejected for both observed and corrected returns.
Journal: Applied Economics
Pages: 1737-1747
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554373
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554373
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1737-1747
Template-Type: ReDIF-Article 1.0
Author-Name: Concetta Castiglione
Author-X-Name-First: Concetta
Author-X-Name-Last: Castiglione
Title: Technical efficiency and ICT investment in Italian manufacturing firms
Abstract:
The importance of Information and Communication Technologies (ICTs) is a
much debated question with extensive literature aimed at understanding the
role of ICTs in increasing economic growth, firm productivity and firm
efficiency. Different methods to estimate firm efficiency are used in this
study. In particular, both the translog and the Cobb--Douglas production
functions are used in order to estimate the impact of ICT on Technical
Efficiency (TE) in Italian manufacturing firms over the period 1995 to
2003. Results show that ICT investments positively and significantly
affected firms’ TE. Moreover, group, size and geographical position
have a positive influence on TE. Finally, the results show that older
firms are, on average, more efficient than newer ones.
Journal: Applied Economics
Pages: 1749-1763
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554374
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554374
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1749-1763
Template-Type: ReDIF-Article 1.0
Author-Name: Sharon G. Levin
Author-X-Name-First: Sharon G.
Author-X-Name-Last: Levin
Author-Name: Paula E. Stephan
Author-X-Name-First: Paula E.
Author-X-Name-Last: Stephan
Author-Name: Anne E. Winkler
Author-X-Name-First: Anne E.
Author-X-Name-Last: Winkler
Title: Innovation in academe: the diffusion of information technologies
Abstract:
This study investigates the diffusion of two early Information
technologies across 1348 institutions of higher education: (1) the
adoption of Because It's Time Network (BITNET), a precursor to the
Internet as we know it today and (2) the adoption of the Domain Name
System (DNS) with its registration of domain names, an essential feature
of the modern Internet. We find that the time paths of adoption for both
generally exhibit the typical S shape found for other innovations. We
identify factors likely responsible for the patterns observed and in the
process extend the scope of the diffusion literature by incorporating
insights from the optimization behaviour of nonprofits. Using a
proportional hazards framework, we find that faster adoption occurred
among institutions focused on research and doctoral education as well as
among select liberal arts colleges relative to nonselect colleges. Faster
adoption also occurred for larger institutions, suggesting that they
benefited from economies of scale. Adoption was slower for institutions
having a larger percent of female faculty members. Also, there is some
evidence to suggest that public institutions were faster to innovate than
private institutions, while institutions in the South tended to innovate
more slowly than institutions located in other regions of the country.
Journal: Applied Economics
Pages: 1765-1782
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554375
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554375
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1765-1782
Template-Type: ReDIF-Article 1.0
Author-Name: Felix Rioja
Author-X-Name-First: Felix
Author-X-Name-Last: Rioja
Author-Name: Neven Valev
Author-X-Name-First: Neven
Author-X-Name-Last: Valev
Title: Financial structure and capital investment
Abstract:
This article studies the effects of financial structure on the growth of
physical capital accumulation. Several theoretical works have proposed
that banks are better than stock markets in funding capital investment. We
test these theories with panel data for 62 industrial and developing
countries using Generalized Method of Moments dynamic panel techniques.
Results show that bank based financial systems are indeed associated with
faster capital growth. This effect is especially strong in countries where
banks can have close links to nonfinancial firms.
Journal: Applied Economics
Pages: 1783-1793
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554376
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554376
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1783-1793
Template-Type: ReDIF-Article 1.0
Author-Name: Frank M. Fossen
Author-X-Name-First: Frank M.
Author-X-Name-Last: Fossen
Title: Gender differences in entrepreneurial choice and risk aversion -- a decomposition based on a microeconometric model
Abstract:
Why are female entrepreneurs so rare? In Germany, women exhibit both a
lower entry rate into and higher exit rate from self-employment. To
explain this gender gap, this study estimates a structural
microeconometric model of transition rates that includes a standard risk
aversion parameter. Inputs into the model are the expected value and
variance of earnings from self-employment and dependent employment,
estimated separately by gender and accounting for nonrandom selection into
self-employment. The gender differential in the transition rates is
decomposed using a novel extension of the Blinder--Oaxaca technique for
nonlinear models. Women's higher estimated risk aversion explains the
largest part of their higher exit rate but only a small portion of their
lower entry rate.
Journal: Applied Economics
Pages: 1795-1812
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554377
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554377
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1795-1812
Template-Type: ReDIF-Article 1.0
Author-Name: Marshall Gramm
Author-X-Name-First: Marshall
Author-X-Name-Last: Gramm
Author-Name: C. Nicholas McKinney
Author-X-Name-First: C. Nicholas
Author-X-Name-Last: McKinney
Author-Name: Douglas H. Owens
Author-X-Name-First: Douglas H.
Author-X-Name-Last: Owens
Title: Efficiency and arbitrage across parimutuel wagering pools
Abstract:
Previous studies have found some degree of inefficiency in betting
markets. However, it is difficult to implement a strategy to take
advantage of these biases. This article investigates and attempts to
arbitrage interrelated betting markets by undertaking three betting
simulations using two datasets comprised of parimutuel pools from US horse
races. Two of the betting simulations are positive returns, but in the
most realistic real-time simulation the losses are substantial. Profitable
betting opportunities disappear due to last minute wagers which change the
odds and increase market efficiency.
Journal: Applied Economics
Pages: 1813-1822
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554378
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554378
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1813-1822
Template-Type: ReDIF-Article 1.0
Author-Name: Gail Blattenberger
Author-X-Name-First: Gail
Author-X-Name-Last: Blattenberger
Author-Name: Richard Fowles
Author-X-Name-First: Richard
Author-X-Name-Last: Fowles
Author-Name: Peter D. Loeb
Author-X-Name-First: Peter D.
Author-X-Name-Last: Loeb
Author-Name: Wm. A. Clarke
Author-X-Name-First: Wm. A.
Author-X-Name-Last: Clarke
Title: Understanding the cell phone effect on vehicle fatalities: a Bayesian view
Abstract:
This article examines the potential effect of various factors on motor
vehicle fatality rates using a rich set of panel data and classical
regression analysis combined with Bayesian Extreme Bounds Analysis (EBA),
Bayesian Model Averaging (BMA) and Stochastic Search Variable Selection
(SSVS) procedures. The variables examined in the models include
traditional motor vehicle and socioeconomic factors. In addition, the
models address the effects of cell phone usage on such accidents. The use
of both classical and Bayesian techniques diminish the model and parameter
uncertainties which afflict more conventional modelling methods which rely
on only one of the two methods.
Journal: Applied Economics
Pages: 1823-1835
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554379
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554379
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1823-1835
Template-Type: ReDIF-Article 1.0
Author-Name: Christa Frei
Author-X-Name-First: Christa
Author-X-Name-Last: Frei
Author-Name: Alfonso Sousa-Poza
Author-X-Name-First: Alfonso
Author-X-Name-Last: Sousa-Poza
Title: Overqualification: permanent or transitory?
Abstract:
This article analyses job mismatches in Switzerland based on a subjective
measure of overqualification. According to job search and job matching
theories, overqualification is a transitory problem. Other theories show
that overqualification can also be of a permanent nature. We test the
perpetuity of overeducation using panel data from the first eight waves of
the Swiss Household Panel (SHP) covering the period 1999 to 2006. Our
empirical analysis reveals little evidence for lasting rigidities that
would cause permanent job mismatches. Rather, spells of overqualification
are relatively short: about half of all individuals who were overqualified
in a given year had an adequate job match 1 year later. While a short
duration of overqualification would be consistent with job search and job
matching theories, our observation that the probability of a job mismatch
does not significantly decrease with experience is at odds with these
theories. Our article provides an alternative explanation for this
phenomenon: the constant accumulation of experience and qualifications
throughout a worker's career implies that, for a good job match to be
maintained, qualification-specific job requirements must increase as the
worker ages. If this does not occur, even older workers face a risk of
becoming overqualified.
Journal: Applied Economics
Pages: 1837-1847
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554380
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554380
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1837-1847
Template-Type: ReDIF-Article 1.0
Author-Name: Poomthan Rangkakulnuwat
Author-X-Name-First: Poomthan
Author-X-Name-Last: Rangkakulnuwat
Author-Name: A. K. M. Mahbub Morshed
Author-X-Name-First: A. K. M. Mahbub
Author-X-Name-Last: Morshed
Author-Name: H. Holly Wang
Author-X-Name-First: H. Holly
Author-X-Name-Last: Wang
Author-Name: Sung K. Ahn
Author-X-Name-First: Sung K.
Author-X-Name-Last: Ahn
Title: Price convergence in US cities: a cointegration approach with two structural breaks
Abstract:
This article investigates how the price indices of major cities of the US
respond to the shock from a city and from monetary policy. We find that
the crisis of Bretton Woods system in 1968 and the oil crisis in 1974
should be incorporated as structural breaks in monetary policy variables
and price indices. Using cointegration technique with structural break in
our aggregated data, we find that the average half-life is 1.75 years,
which is closer to what some of others found in disaggregated data, and
that the interest rate is an effective tool for controlling cities’
price in short run.
Journal: Applied Economics
Pages: 1849-1862
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554381
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554381
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1849-1862
Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Chun Tseng
Author-X-Name-First: Wei-Chun
Author-X-Name-Last: Tseng
Author-Name: Waraporn Ngamsomsuke
Author-X-Name-First: Waraporn
Author-X-Name-Last: Ngamsomsuke
Title: The nested collective lottery that maximizes welfare under consumption interdependence
Abstract:
We develop a generalized lottery mechanism in this article that allows
people to choose to succeed separately while retaining both merits
(fairness and options to succeed jointly) of the collective lottery
developed by Chen et al. (2010). We use the
rationing of hunting permits in the US and Canada as examples to show the
applicability of this generalized lottery mechanism.
Journal: Applied Economics
Pages: 1863-1866
Issue: 14
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.556582
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556582
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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1863-1866
Template-Type: ReDIF-Article 1.0
Author-Name: James Giesecke
Author-X-Name-First: James
Author-X-Name-Last: Giesecke
Author-Name: Nhi Hoang Tran
Author-X-Name-First: Nhi Hoang
Author-X-Name-Last: Tran
Title: A general framework for measuring VAT compliance rates
Abstract:
Summary measures of Value Added Tax (VAT) compliance rates are valuable
for identifying problem areas in VAT implementation. They are also
essential for meaningful crosscountry and crosstime comparisons of VAT
compliance. We present a comprehensive and general framework for
calculating VAT compliance rates at both the economy wide and detailed
sectoral levels. Unlike existing measures of VAT compliance, our framework
isolates a compliance measure from the effects on VAT receipts of detailed
features of VAT systems as actually implemented by tax authorities. These
features include multiple VAT rates, exemptions, registration rates,
refund limitations, informal activity, taxation of domestic nonresidents
and undeclared imports. We implement our comprehensive VAT compliance
measure for Vietnam, a country with a complex VAT system. Our estimate of
Vietnam's VAT compliance rate is about 13 percentage points higher than
that calculated by the most popular measure of compliance, Collection
Efficiency (CE). Our method facilitates decomposition of the difference
between CE and our VAT compliance measure into individual contributions by
the statutory and structural features of Vietnam's VAT regime.
Journal: Applied Economics
Pages: 1867-1889
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.554382
File-URL: http://hdl.handle.net/10.1080/00036846.2011.554382
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1867-1889
Template-Type: ReDIF-Article 1.0
Author-Name: C. Guccio
Author-X-Name-First: C.
Author-X-Name-Last: Guccio
Author-Name: G. Pignataro
Author-X-Name-First: G.
Author-X-Name-Last: Pignataro
Author-Name: I. Rizzo
Author-X-Name-First: I.
Author-X-Name-Last: Rizzo
Title: Determinants of adaptation costs in procurement: an empirical estimation on Italian public works contracts
Abstract:
It is widely agreed that rules governing public procurement should be
designed to achieve value for money. However, in the public works sector,
‘… the good being procured is usually complex and
hard to be exactly specified ex ante,
… [and] alterations to the original project might be needed
after the contract is awarded. This may result in considerable
discrepancies between the lowest winning bid and the actual costs that are
incurred by the buyer’ (Bajari et al., 2006).
There is now a wide body of literature focusing on cost escalation during
the execution of contracts and their estimates reveal that it can be often
quite large. This article is aimed at offering an empirical test of the
determinants of adaptation costs in the public works procurement. Using a
detailed data set on Italian public works contracts, we run an empirical
analysis, grounded on the main conclusions reached in the literature, to
test for the main drivers of adaptation costs.
Journal: Applied Economics
Pages: 1891-1909
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.556589
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556589
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1891-1909
Template-Type: ReDIF-Article 1.0
Author-Name: Nikita Lyssenko
Author-X-Name-First: Nikita
Author-X-Name-Last: Lyssenko
Author-Name: Roberto Mart-Espiñeira
Author-X-Name-First: Roberto
Author-X-Name-Last: Mart-Espiñeira
Title: Respondent uncertainty in contingent valuation: the case of whale conservation in Newfoundland and Labrador
Abstract:
In this article we investigate the issue of respondent uncertainty in
contingent valuation studies while estimating the willingness to pay for a
whale conservation program off the coasts of Newfoundland and Labrador. We
use data from a phone survey administered to a sample
(N = 614) of adult Canadians, proposing a
policy consisting of subsidizing and enforcing the use of acoustic devices
that would reduce the likelihood that whales become entangled in fishing
nets. A follow-up question asked respondents how certain they were about
their answer to the main dichotomous-choice question, which allows us to
investigate how the treatment of uncertainty affects value measures. A
mean willingness to pay of about $81/year per respondent is estimated when
accounting for the degree of certainty with which respondents expressed
their willingness to pay. We also analyse payment vehicle effects using a
split-sample approach whereby some respondents were asked a
dichotomous-choice question about a tax contribution while others were
asked about a voluntary donation instead.
Journal: Applied Economics
Pages: 1911-1930
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.556590
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556590
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1911-1930
Template-Type: ReDIF-Article 1.0
Author-Name: D. Engel
Author-X-Name-First: D.
Author-X-Name-Last: Engel
Author-Name: V. Procher
Author-X-Name-First: V.
Author-X-Name-Last: Procher
Title: Export, FDI and firm productivity
Abstract:
Many empirical papers tested the theoretical predictions of Helpman,
Melitz and Yeaple (HMY, 2004) which sorts firms at different
internationalization states according to their productivity levels. While
these papers ignore the fact, that the theoretical predictions of HMY only
apply to firms that become engaged in market-driven Foreign Direct
Investment (FDI), we apply a more precise methodology using a French firm
sample with more than 110 000 observations. Our results show that
firms with a broader investment strategy, reflecting a great importance of
market-driven motives, show higher productivity levels than firms with
less encompassing foreign investment strategies. We conclude that the
methodology is well-suited to sort firms according to the importance of
market-driven FDI.
Journal: Applied Economics
Pages: 1931-1940
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.556591
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556591
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1931-1940
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Population growth and local public finance in Japanese cities
Abstract:
The determinants of Japanese city population growth for the period 2000
to 2005 are empirically examined with particular attention to local public
finance. The selection of one Fiscal Indicator (FI) from four alternatives
-- ordinary balance ratio (OBR), ratio of outstanding borrowing (ROB) to
the ordinary account, debt service payment ratio (DSPR) and financial
power index (FPI) -- and the consideration of spatial
auto‐correlation provide 12 regression models. In each regression,
six additional explanatory variables are considered with reference to
earlier empirical studies. Empirical results suggest that (1) three FIs,
excluding DSPR, are significant; and (2) the number of local government
officers and the ratio of graduates of not‐less‐than junior
college are highly significant in all specifications.
Journal: Applied Economics
Pages: 1941-1949
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.556592
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556592
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1941-1949
Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Boon Tan
Author-X-Name-First: Hui-Boon
Author-X-Name-Last: Tan
Author-Name: Eng-Tuck Cheah
Author-X-Name-First: Eng-Tuck
Author-X-Name-Last: Cheah
Author-Name: Johnnie E. V. Johnson
Author-X-Name-First: Johnnie E. V.
Author-X-Name-Last: Johnson
Author-Name: Ming-Chien Sung
Author-X-Name-First: Ming-Chien
Author-X-Name-Last: Sung
Author-Name: Chong-Hin Chuah
Author-X-Name-First: Chong-Hin
Author-X-Name-Last: Chuah
Title: Stock market capitalization and financial integration in the Asia Pacific region
Abstract:
The Stock Market Capitalization (SMC) of a country, defined as the
aggregated market value equity of companies in the respective equity
market, is commonly used to measure the widening and deepening of stock
market activity. SMC also influences economic growth predictions and
public consensus concerning the value of the stock market. However, no
previous work has examined the role this variable plays in the process of
financial integration. This article provides an argument for the use of
SMC as a means of deciding which countries are acting as leaders in
creating a fully integrated equity market in the Asia Pacific region. A
total of 12 countries in the Asia Pacific region were divided into
‘Emerging Market’ and ‘Advanced Market’ equity
blocks. We examine the relative size of the speed of adjustments derived
from the error correction models following the Engle--Granger two-step
procedure framework and apply the Granger causality test. The results
suggest that Hong Kong Special Administrative Region (SAR) possesses the
necessary credentials to act as market leader. In fact, Hong Kong SAR
appears to be the only contender for market leader of both the
‘Emerging Market’ and ‘Advanced Market’ equity
blocks.
Journal: Applied Economics
Pages: 1951-1961
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.556593
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556593
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1951-1961
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Cozza
Author-X-Name-First: Claudio
Author-X-Name-Last: Cozza
Author-Name: Franco Malerba
Author-X-Name-First: Franco
Author-X-Name-Last: Malerba
Author-Name: Maria Luisa Mancusi
Author-X-Name-First: Maria Luisa
Author-X-Name-Last: Mancusi
Author-Name: Giulio Perani
Author-X-Name-First: Giulio
Author-X-Name-Last: Perani
Author-Name: Andrea Vezzulli
Author-X-Name-First: Andrea
Author-X-Name-Last: Vezzulli
Title: Innovation, profitability and growth in medium and high-tech manufacturing industries: evidence from Italy
Abstract:
The main goal of this article is to assess the impact of product
innovation on the economic performance of firms operating in Medium and
High-Tech (M&HT) industries. Using information from a large and unique
dataset on Italian firms we estimate, by means of Propensity Score (PS)
matching methods, a positive and significant ‘innovation
premium’ both in terms of profitability and growth (in the
short-run) for those firms who introduced new innovative products. We also
find that this innovation premium is particularly large for small firms
and even more so when considering new established firms.
Journal: Applied Economics
Pages: 1963-1976
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.556594
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556594
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1963-1976
Template-Type: ReDIF-Article 1.0
Author-Name: Natalie Chun
Author-X-Name-First: Natalie
Author-X-Name-Last: Chun
Author-Name: Minjung Park
Author-X-Name-First: Minjung
Author-X-Name-Last: Park
Title: The impact of clinical trial insurance coverage mandates on racial minorities and low income individuals
Abstract:
Mandates are often used as a policy tool to decrease disparities in
access to health treatments and services. The lack of insurance coverage
for routine care costs associated with participating in clinical trials is
often cited as a major barrier to clinical trial participation, especially
for low income individuals and racial minorities who are highly
cost-sensitive. This article examines if state mandates requiring health
insurers to cover routine care costs for patients enroled in clinical
trials helped reduce the gap in clinical trial access between the affluent
and the poor and between whites and racial minorities. Using data on the
locations of cancer clinical trials initiated in the US between 2001 and
2007 as well as Census data on income and race, we examine the effects of
the policies on clinical trial sponsors’ location choices. Our
analysis indicates that the policies helped increase availability of phase
2 clinical trials in areas with a high proportion of black residents,
thereby partially mitigating race-based disparity in clinical trial
access. We do not find any evidence that the policies helped alleviate
income-based disparity in clinical trial access.
Journal: Applied Economics
Pages: 1977-1984
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.556595
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556595
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1977-1984
Template-Type: ReDIF-Article 1.0
Author-Name: Hipólito Simón
Author-X-Name-First: Hipólito
Author-X-Name-Last: Simón
Title: The gender gap in earnings: an international comparison with European matched employer--employee data
Abstract:
This article examines the origin of the cross-country heterogeneity of
the gender wage gap in nine European countries using a unique harmonized
international matched employer--employee dataset. Our novel findings
suggest that cross-country differences in the intensity of female
segregation into low-paying workplaces is a relevant source of
international differences in the size of the gap and that international
disparities in the characteristics of wage structures are not very
influential. On the other hand, the evidence is not fully conclusive with
respect to the influence on the variations of the gap of different
macroeconomic, social and institutional country-specific features
considered previously in the literature.
Journal: Applied Economics
Pages: 1985-1999
Issue: 15
Volume: 44
Year: 2012
Month: 5
X-DOI: 10.1080/00036846.2011.558477
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558477
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:15:p:1985-1999
Template-Type: ReDIF-Article 1.0
Author-Name: Georgios P. Kouretas
Author-X-Name-First: Georgios P.
Author-X-Name-Last: Kouretas
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: The dynamics of inflation: a study of a large number of countries
Abstract:
Over the last twenty years the statistical properties of inflation
persistence has been the subject of intense investigation and debate
without reaching a unanimous conclusion yet. In this article we attempt to
shed further light to this debate using a battery of econometric
techniques in order to provide robust evidence on the degree of inflation
persistence and whether this has changed during the period in which
several countries have followed inflation-targeting regimes or new
monetary regimes. We consider the inflation rates of thirty developed and
emerging economies using quarterly data for the period 1958 to 2007 which
include alternative monetary policy regimes. The coefficient of the
inflation parameter is estimated by Ordinary Least Squares (OLS),
Autoregressive Moving Average (ARMA) and Autoregressive Fractionally
Integrated Moving Average (ARFIMA) models. Furthermore, the grid-bootstrap
Median Unbiased (MUB) estimator approach developed by Hansen (1999) is
used to estimate the finite sample OLS estimates coupled with the 95%
symmetric confidence interval. We also examine parameter stability of
persistence coefficients by estimating a model with time-varying
parameters.
Journal: Applied Economics
Pages: 2001-2026
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.556596
File-URL: http://hdl.handle.net/10.1080/00036846.2011.556596
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2001-2026
Template-Type: ReDIF-Article 1.0
Author-Name: Ebru Guven Solakoglu
Author-X-Name-First: Ebru Guven
Author-X-Name-Last: Solakoglu
Author-Name: Abdulkadir Civan
Author-X-Name-First: Abdulkadir
Author-X-Name-Last: Civan
Title: Does morbidity matter? Perceived health status in explaining the share of healthcare expenditures
Abstract:
We argue that the demand for healthcare services can be better explained
by individual need based variables rather than by macro variables such as
the Gross Domestic Product (GDP) per capita and the share of public
healthcare expenditures. This study introduces a self-rated health
variable called morbidity that describes individual needs
for health care -- healthy individuals need less health
care than sick ones -- and that is measured through personal interviews
conducted by the Organization for Economic Co-operation and Development
(OECD). In addition, stationary properties of the series are considered in
order to understand the effect of shocks to expenditure behaviour on
health care. Stationary test results show that we should not only use
differenced values for the model variables but also incorporate
time-specific effects into the model. Using the appropriate specification
and accounting for the time effect, we find evidence supporting the
hypothesis that the share of healthcare expenditure in GDP rises with the
increased need for health care. The need
for health care is also found to be more important than per capita GDP
when explaining the change in the share of healthcare expenditures for the
examined countries.
Journal: Applied Economics
Pages: 2027-2034
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558476
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558476
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2027-2034
Template-Type: ReDIF-Article 1.0
Author-Name: Maximilian D. Schmeiser
Author-X-Name-First: Maximilian D.
Author-X-Name-Last: Schmeiser
Title: Expanding New York State's Earned Income Tax Credit Programme: the effect on work, income and poverty
Abstract:
Given its favourable employment incentives and ability to target the
working poor, the Earned Income Tax Credit (EITC) has become the primary
antipoverty programme at both the federal and state levels. However, when
evaluating the effect of EITC programmes on income and poverty,
governments generally calculate the effect using simple accounting, where
the value of the state or federal EITC benefit is added to a person's
income. These calculations omit the behavioural incentives created by the
existence of these programmes, the corresponding effect on labour supply
and hours worked, and therefore the actual effect on income and poverty.
This article simulates the full effect of an expansion of the New York
State EITC benefit on employment, hours worked, income, poverty and
programme expenditures. These results are then compared to those omitting
labour supply effects. Relative to estimates excluding labour supply
effects, the preferred behavioural results show that an expansion of the
New York State EITC increases employment by an additional 14 244
persons, labour earnings by an additional $95.8 million, family income by
an additional $84.5 million, decreases poverty by an additional
56 576 persons and increases costs to the State by $29.7 million.
Journal: Applied Economics
Pages: 2035-2050
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558478
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558478
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2035-2050
Template-Type: ReDIF-Article 1.0
Author-Name: Anirvan Banerji
Author-X-Name-First: Anirvan
Author-X-Name-Last: Banerji
Author-Name: Allan P. Layton
Author-X-Name-First: Allan P.
Author-X-Name-Last: Layton
Author-Name: Lakshman Achuthan
Author-X-Name-First: Lakshman
Author-X-Name-Last: Achuthan
Title: Dating the ‘world business cycle’
Abstract:
By mid-2008 the world was witnessing the unfolding of a relatively rare
macroeconomic phenomenon, namely, the onset of what one might call a
synchronized international -- or ‘world’ -- recession. But
what exactly is a ‘synchronized world recession’? This
article proposes a practical definition of a ‘synchronized world
recession’ and a putative set of historical post-WWII dates for a
‘world business cycle chronology’. Further, using a
constructed ‘world coincident index of economic indicators’
and an associated ‘world leading index of economic
indicators’, this article demonstrates that evidence was available
from early in the second half of 2007 that the world was indeed sliding
inexorably towards its fourth synchronized world recession since WWII
(although, interestingly, already its second of the twenty-first
century!).
Journal: Applied Economics
Pages: 2051-2063
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558479
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558479
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2051-2063
Template-Type: ReDIF-Article 1.0
Author-Name: Julie L. Hotchkiss
Author-X-Name-First: Julie L.
Author-X-Name-Last: Hotchkiss
Author-Name: John C. Robertson
Author-X-Name-First: John C.
Author-X-Name-Last: Robertson
Title: Asymmetric labour force participation decisions
Abstract:
This article finds compelling evidence of asymmetric labour force
participation decisions across demographic groups in response to changes
in labour market conditions. This behaviour is consistent with predictions
from the standard labour-leisure choice model and suggests that asymmetry
in individual behaviour plays some role in the observed asymmetry of the
aggregate unemployment rate. It is estimated that the weighted average
difference in response to a one percentage point change in unemployment
rates is sizeable when compared to the average monthly change in the
aggregate labour force.
Journal: Applied Economics
Pages: 2065-2073
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558480
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558480
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2065-2073
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon
Author-X-Name-First: Robert
Author-X-Name-Last: Dixon
Author-Name: G. C. Lim
Author-X-Name-First: G. C.
Author-X-Name-Last: Lim
Title: A univariate model of aggregate labour productivity
Abstract:
In this article, we set out a model of labour productivity which
distinguishes between shocks which change productivity permanently and
shocks which have transient affects on productivity. We show that this
model is a type of unobserved components model -- a random walk with drift
plus noise model. The advantage of this approach is that it provides a
coherent framework to identify the deterministic trend growth component
and also the productivity enhancing (or technology related) stochastic
components. The model is applied to aggregate labour productivity in
Australia and the time series of technology shocks extracted is used to
shed some light on the contributions of policy reforms to productivity.
Journal: Applied Economics
Pages: 2075-2080
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558481
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558481
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2075-2080
Template-Type: ReDIF-Article 1.0
Author-Name: Hyun Seok Kim
Author-X-Name-First: Hyun Seok
Author-X-Name-Last: Kim
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Title: Can real option values explain apparent storage at a loss?
Abstract:
Since decisions to sell grain are irreversible, waiting to sell grain can
have a real option value. This real option value may explain why producers
appear to store too long. A new seasonal mean reversion model is estimated
that allows prices to be a random walk with drift within a season, but
mean reverting across crop years. Unless prices are extremely low, selling
before mean reversion begins is optimal. Thus, the real option value of
waiting does not explain why some producers seem to store at a loss in the
latter part of crop years.
Journal: Applied Economics
Pages: 2081-2090
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558483
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558483
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2081-2090
Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Leon Navarro
Author-X-Name-First: Manuel Leon
Author-X-Name-Last: Navarro
Author-Name: Rafael Flores de Frutos
Author-X-Name-First: Rafael Flores
Author-X-Name-Last: de Frutos
Title: Consumption and housing wealth breakdown of the effect of a rise in interest rates
Abstract:
In this article the effect on consumption of a fall in housing wealth and
housing prices, resulting from an increase in interest rates is estimated.
With the help of a dynamic multiequation, macroeconomic model, the
consumer response function is broken down into two parts: a direct
response related to a rise in the cost of credit and another indirect one
related to the deterioration of the property market. Estimation of the
theoretical model is done by means of a Vectorial Error-Correction (VEC)
model.
Journal: Applied Economics
Pages: 2091-2110
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558484
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558484
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2091-2110
Template-Type: ReDIF-Article 1.0
Author-Name: Gianna C. Giannelli
Author-X-Name-First: Gianna C.
Author-X-Name-Last: Giannelli
Author-Name: Lucia Mangiavacchi
Author-X-Name-First: Lucia
Author-X-Name-Last: Mangiavacchi
Author-Name: Luca Piccoli
Author-X-Name-First: Luca
Author-X-Name-Last: Piccoli
Title: GDP and the value of family caretaking: how much does Europe care?
Abstract:
This study estimates the size and value of unpaid family caretaking
activities at a European level. While at a country level several studies
are available, a comprehensive evaluation for Europe as a whole was
missing so far, mainly due to data limitations. This article fills this
gap using a method that merges the information of the European Survey of
Income and Living Conditions (EU-SILC) with the Harmonised European Time
Use Surveys (HETUS). Monetary values of unpaid family domestic work and
unpaid family childcare work are obtained applying both the opportunity
cost and the market replacement approaches. For Europe as a whole, the
total value of these activities ranges between 17% and 31.6% of the EU
Gross Domestic Product (GDP), depending on the applied methodology. The
national values of these activities are discussed and an interpretation of
the country and gender differentials in family caretaking costs is given
in terms of differences in culture, economic development and welfare
state.
Journal: Applied Economics
Pages: 2111-2131
Issue: 16
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558485
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558485
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:16:p:2111-2131
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Ignacio Gimenez-Nadal
Author-X-Name-First: Jose Ignacio
Author-X-Name-Last: Gimenez-Nadal
Author-Name: Jose Alberto Molina
Author-X-Name-First: Jose Alberto
Author-X-Name-Last: Molina
Author-Name: Raquel Ortega
Author-X-Name-First: Raquel
Author-X-Name-Last: Ortega
Title: Self-employed mothers and the work-family conflict
Abstract:
We analyse how self-employed and employed mothers allocate their time
throughout the day in order to balance their work and family
responsibilities. To that end, we use time diary information from Spain, a
country with a low level of women's participation in the labour market
(Spanish Time Use Survey (STUS), 2002--2003). We find that self-employed
mothers devote less time to market work, and more time to tertiary (e.g.
sleeping, eating) and leisure activities, than employed mothers in a
working day. We also find differences between employed and self-employed
mothers in the timing of market work, child care and housework throughout
the day, and we find complementarities between the timing of market work
of working mothers and the timing of child care of their male partners.
Our results on timing are consistent with the hypothesis that
self-employment stands as a possible way for mothers to have greater
control over the timing of work (flexible hours), and that they may
therefore be able to work odd shifts, when the spouse is available to care
for the children.
Journal: Applied Economics
Pages: 2133-2147
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.558486
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558486
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2133-2147
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund
Author-X-Name-First: Christian
Author-X-Name-Last: Grund
Author-Name: Judith Przemeck
Author-X-Name-First: Judith
Author-X-Name-Last: Przemeck
Title: Subjective performance appraisal and inequality aversion
Abstract:
Making use of a subjective performance appraisal system, it is a
well-established fact that many supervisors tend to assess the employees
too good (leniency bias) and that the appraisals hardly vary across
employees of a certain supervisor (centrality bias). We explain these two
biases in a simple theoretical model and discuss determinants of the size
of the biases.
Journal: Applied Economics
Pages: 2149-2155
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.560109
File-URL: http://hdl.handle.net/10.1080/00036846.2011.560109
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2149-2155
Template-Type: ReDIF-Article 1.0
Author-Name: Nick Johnstone
Author-X-Name-First: Nick
Author-X-Name-Last: Johnstone
Author-Name: Ivan Haščič
Author-X-Name-First: Ivan
Author-X-Name-Last: Haščič
Author-Name: Julie Poirier
Author-X-Name-First: Julie
Author-X-Name-Last: Poirier
Author-Name: Marion Hemar
Author-X-Name-First: Marion
Author-X-Name-Last: Hemar
Author-Name: Christian Michel
Author-X-Name-First: Christian
Author-X-Name-Last: Michel
Title: Environmental policy stringency and technological innovation: evidence from survey data and patent counts
Abstract:
This article uses patent data to examine the impact of public
environmental policy on innovations in environment-related technology. The
analysis is conducted using data on an unbalanced panel of 77 countries
between 2001 and 2007, drawing upon data obtained from the European Patent
Office (EPO) World Patent Statistical (PATSTAT) database and the World
Economic Forum's (WEF) ‘Executive Opinion Survey’. The
results support our hypotheses concerning the positive role of both
general innovative capacity and environmental policy stringency on
environment-related innovation. A subsequent two-stage model assesses the
factors which drive innovation in general and uses the fitted values to
estimate environmental innovation. While the analysis is conducted on a
smaller sample, they confirm the findings of the reduced-form model.
Journal: Applied Economics
Pages: 2157-2170
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.560110
File-URL: http://hdl.handle.net/10.1080/00036846.2011.560110
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2157-2170
Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Granier
Author-X-Name-First: Laurent
Author-X-Name-Last: Granier
Author-Name: S颡stien Trinquard
Author-X-Name-First: S颡stien
Author-X-Name-Last: Trinquard
Title: Predation in off-patent drug markets
Abstract:
In 2009, Sanofi-Aventis, whose generic subsidiary is Winthrop, merges
with the generic firm, Zentiva. This article fills the gap in the
theoretical literature concerning mergers in pharmaceutical markets. To
prevent generic firms from increasing their market share, some brand-name
firms produce generics themselves, called pseudo-generics. We develop a
Cournot duopoly model by considering the pseudo-generics production as a
mergers' catalyst. We show that a brand-name company always has an
incentive to purchase its competitor. The key insight of this article is
that the brand-name laboratory can increase its merger gain by producing
pseudo-generics beforehand. In some cases, pseudo-generics would not
otherwise be produced and this production is then a predatory strategy.
Journal: Applied Economics
Pages: 2171-2186
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.562169
File-URL: http://hdl.handle.net/10.1080/00036846.2011.562169
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2171-2186
Template-Type: ReDIF-Article 1.0
Author-Name: Declan Curran
Author-X-Name-First: Declan
Author-X-Name-Last: Curran
Title: British regional growth and sectoral trends: global and local spatial econometric approaches
Abstract:
This article looks beneath the surface of British sub-regional aggregate
Gross Value Added (GVA) growth over the period 1995 to 2007, by examining
how the differing growth dynamics of the secondary and services sectors
have influenced the overall regional growth process. A spatial econometric
analysis is undertaken which tests regional secondary and services real
GVA per capita for absolute and conditional convergence
at the NUTS 3 level. Both local and global spatial analysis techniques are
utilized in order to gain a detailed insight into the growth process over
the period 1995 to 2007.
Journal: Applied Economics
Pages: 2187-2201
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.562170
File-URL: http://hdl.handle.net/10.1080/00036846.2011.562170
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2187-2201
Template-Type: ReDIF-Article 1.0
Author-Name: Raul Conejeros
Author-X-Name-First: Raul
Author-X-Name-Last: Conejeros
Author-Name: Miguel Vargas
Author-X-Name-First: Miguel
Author-X-Name-Last: Vargas
Title: Segregation, exclusion and compensating transfers under a dynamic setting
Abstract:
Anas (2002) has shown that there exist equilibria with exclusion and the
payments of economic transfers where whites and blacks are better off than
in the case without them. Anas’ model is static so it does not
consider important dynamics aspect of this phenomenon. Hence, we have
developed a dynamic general equilibrium model of segregation. Our main
findings are: there exists a path of transfers such as there is a dynamic
equilibrium where whites and blacks are better off with exclusion and
transfers; and higher levels of prejudices imply lower levels of
aggregated utility. Finally, the effects of a prejudice shock can last
between 2 and 30 years, hence policymakers must pay attention to sudden
positive prejudice shocks in order to implement policies to reduce their
consequences.
Journal: Applied Economics
Pages: 2203-2215
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.562171
File-URL: http://hdl.handle.net/10.1080/00036846.2011.562171
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2203-2215
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge V. P鲥z-Rodrz
Author-X-Name-First: Jorge V.
Author-X-Name-Last: P鲥z-Rodrz
Author-Name: Beatriz G. L. Valcarcel
Author-X-Name-First: Beatriz G. L.
Author-X-Name-Last: Valcarcel
Title: Do product innovation and news about the R&D process produce large price changes and overreaction? The case of pharmaceutical stock prices
Abstract:
Do extreme price changes of pharmaceutical stocks reflect unexpected
scientific information produced during the drug R&D process, especially
the approval of new drugs, but also pre- and clinical trial results,
recalls and withdrawals? Do stock prices initially overreact to such
information? We modelled market-adjusted daily changes in stock prices of
the 17 biggest pharmaceutical firms worldwide for the period from 1989 to
2008 to detect large price changes (outliers), using an Autoregressive
Moving Average--Generalized Autoregressive Conditional Heteroscedasticity
(ARMA--GARCH) dynamic econometric model. Then, we matched those outliers
with news produced during the drug R&D process, and tested the hypothesis
of no overreaction by examining cumulative abnormal returns. Our results
show that there were 261 abnormal market-adjusted daily returns. In 60% of
the cases, we were able to assign a plausible cause; i.e. Food and Drug
Administration (FDA) approvals in 6% of these cases, news of a scientific
nature in another 25%. Only 10 of 1721 FDA approvals of new drugs during
the study period were related to abnormally large returns. The impact of
negative news items on stock prices is larger than of positive news items.
The overreaction hypothesis is rejected; there is no price backlash,
therefore, the efficient market hypothesis is not violated.
Journal: Applied Economics
Pages: 2217-2229
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.562172
File-URL: http://hdl.handle.net/10.1080/00036846.2011.562172
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2217-2229
Template-Type: ReDIF-Article 1.0
Author-Name: Luke Byrne Willard
Author-X-Name-First: Luke Byrne
Author-X-Name-Last: Willard
Title: Does inflation targeting matter? A reassessment
Abstract:
A number of countries have adopted the policy of inflation targeting and
a substantial literature exists on the virtues of inflation targeting in
reducing inflation (Bernanke et al., 1999). However,
results in the existing empirical literature conflict. This article uses a
number of identification approaches (instrumental variables, assumptions
about heteroscedasticity, panel-fixed effects and a potential natural
experiment) to estimate the effect of inflation targeting on inflation for
a sample of Organization for Economic Co-operation and Development (OECD)
countries. Generally, it finds that the effect is small and insignificant.
It also finds little evidence that inflation variability, inflation
uncertainty, inflation volatility or inflation expectations fall with
targeting suggesting that inflation targeting does not affect a number of
variables likely to be of interest to policy makers.
Journal: Applied Economics
Pages: 2231-2244
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564136
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564136
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2231-2244
Template-Type: ReDIF-Article 1.0
Author-Name: Sylvia Brandt
Author-X-Name-First: Sylvia
Author-X-Name-Last: Brandt
Author-Name: Sara Gale
Author-X-Name-First: Sara
Author-X-Name-Last: Gale
Author-Name: Ira Tager
Author-X-Name-First: Ira
Author-X-Name-Last: Tager
Title: The value of health interventions: evaluating asthma case management using matching
Abstract:
Despite large public investments in asthma interventions, there are few
rigorous assessments of these programmes and little understanding of what
comprises an effective intervention. There is a lack of appropriate data,
little technical support is provided, and the programs themselves have
little incentive to conduct these analyses. In this study, we apply
optimal full matching using propensity scores to estimate the impact of an
asthma intervention programme across a range of health outcomes. Our
participation model is derived using the Deletion, Substitution and
Addition (DSA) algorithm, a method used in epidemiology for model
selection. We find that the asthma programme in question has no
significant effect on participants that distinguishes them from matched
nonparticipants, but it is not clear whether this is due to the
effectiveness of the programme, heterogeneity of effects or barriers
outside the programme's control. Our findings do show how current
programmes could be modified to increase their effectiveness and better
inform future research.
Journal: Applied Economics
Pages: 2245-2263
Issue: 17
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564137
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564137
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:17:p:2245-2263
Template-Type: ReDIF-Article 1.0
Author-Name: Anita Alves Pena
Author-X-Name-First: Anita Alves
Author-X-Name-Last: Pena
Title: Economies of scale and gender discrimination in transition: the case of the Republic of Tajikistan
Abstract:
This article tests for economies of scale and for evidence of
discrimination based on gender lines in intra-household consumption
allocations using data from the Living Standards Survey in the Republic of
Tajikistan (TLSS). Overall results support the existence of household
economies of scale in Tajikistan; however, empirical evidence supporting
boy--girl discrimination is limited despite anecdotal evidence otherwise.
Journal: Applied Economics
Pages: 2265-2281
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564138
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564138
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2265-2281
Template-Type: ReDIF-Article 1.0
Author-Name: Debra Dwyer
Author-X-Name-First: Debra
Author-X-Name-Last: Dwyer
Author-Name: Hong Liu
Author-X-Name-First: Hong
Author-X-Name-Last: Liu
Author-Name: John A. Rizzo
Author-X-Name-First: John A.
Author-X-Name-Last: Rizzo
Title: Does patient trust promote better care?
Abstract:
Information asymmetries favouring the supplier in the production of good
health have long been acknowledged as an anomaly in medical markets
creating the potential for inefficiency. Such asymmetries may undermine
the physician/patient relationship. And given these asymmetries, patient
trust may play an important role in successful physician/patient
relationships. This agency relationship has been studied for many years in
the context of Fee-for-Service (FFS) reimbursement. But the market has
changed considerably given the combination of an influx of information and
the penetration of managed care - both of which have shifted
some decision-making power away from the physician. An additional
important factor in the physician/agency relationship that is also
changing is patient trust. Where patient trust was implicit in the system
with predicted positive effects on health outcomes when FFS was the norm,
now trust itself is not a given, and its effect on the doctor--patient
relationship may be evolving. We study how trust impacts patients’
perceptions about quality of care, and whether these relationships differ
by health insurance type. We find that Health Maintenance Organization
(HMO) patients have significantly lower trust in their primary care
physicians than those with more traditional coverage. Using a
multi-dimensional index of patients’ perceptions about the quality
of care they receive from their physicians, we also find that trust has no
significant effect on perceived quality for non-HMO patients, but
significantly improves perceived outcomes for HMO patients. We conclude
that trusting patients are more likely to have a better doctor-patient
relationship than those who are skeptical in the HMO setting. Perhaps
given lack of provider choice, it requires a level of trust in general to
be compliant and satisfied with assigned physicians. In the non-HMO
setting where consumers are now armed with more information and free to
make choices, trust becomes less important. These results have
implications for how decisions are made in the market for health services
we face today and ultimately for public health policy.
Journal: Applied Economics
Pages: 2283-2295
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564139
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564139
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2283-2295
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bolli
Author-X-Name-First: Thomas
Author-X-Name-Last: Bolli
Author-Name: Mathias Zurlinden
Author-X-Name-First: Mathias
Author-X-Name-Last: Zurlinden
Title: Measurement of labour quality growth caused by unobservable characteristics
Abstract:
The standard economy-wide indices of labour quality (or human capital)
largely ignore the role of unobservable worker characteristics. In this
article, we develop a methodology for identifying the contributions of
both observable and unobservable worker characteristics in the presence of
the incidental parameter problem. Based on data for Switzerland over the
period 1991 to 2006, we find that a large part of growth in labour quality
is caused by shifts in the distribution of unobservable worker
characteristics. The overall index differs little from the standard
indices, but contributions to growth attributed to education and age are
corrected downwards.
Journal: Applied Economics
Pages: 2297-2308
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564140
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564140
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2297-2308
Template-Type: ReDIF-Article 1.0
Author-Name: Gil Aharoni
Author-X-Name-First: Gil
Author-X-Name-Last: Aharoni
Author-Name: Oded H. Sarig
Author-X-Name-First: Oded H.
Author-X-Name-Last: Sarig
Title: Hot hands and equilibrium
Abstract:
Past literature suggests that success rates in professional basketball
are independent of past performance and this has been interpreted as
evidence that the commonly shared belief in Hot Hands
(HH) is a cognitive illusion. This is often cited as
evidence of biased decision making, even when financial stakes are high.
We argue that this interpretation ignores changes in both teams’
behaviour after the detection of an HH player. We derive
testable hypotheses that differentiate between HH as a
real phenomenon and a cognitive illusion. Analysing an entire NBA season,
our results are consistent with HH being a real
phenomenon.
Journal: Applied Economics
Pages: 2309-2320
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564141
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564141
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2309-2320
Template-Type: ReDIF-Article 1.0
Author-Name: Lusine Lusinyan
Author-X-Name-First: Lusine
Author-X-Name-Last: Lusinyan
Author-Name: John Thornton
Author-X-Name-First: John
Author-X-Name-Last: Thornton
Title: The intertemporal relation between government revenue and expenditure in the United Kingdom, 1750 to 2004
Abstract:
We examine the intertemporal relation between government revenue and
expenditure in the UK during 1750 to 2004. We pay particular attention to
long run trends by applying a battery of unit root and cointegration
techniques to the data, and we use a modified Granger causality test on
data spans organized around structural breaks in the series. The results
suggest that, allowing for structural breaks, UK real revenue and spending
are I(1) series and cointegrated and that Granger
causality runs from government spending to revenue. As such, the
‘spend-tax’ hypothesis appears to best characterize the long
run intertemporal relation between government revenue and spending in the
UK.
Journal: Applied Economics
Pages: 2321-2333
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564142
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564142
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2321-2333
Template-Type: ReDIF-Article 1.0
Author-Name: David Vera
Author-X-Name-First: David
Author-X-Name-Last: Vera
Title: How responsive are banks to monetary policy?
Abstract:
I provide evidence that the response of commercial banks’ loans to
monetary policy shocks in the US has changed. In particular, using bank
data from the period 1959 to 2007, I show that the effect of monetary
policy shocks on banks’ credit has significantly decreased over
time. My results contrast significantly with previous finding in the
literature (Bernanke and Blinder, 1992). As potential explanations to the
lower effect of monetary shocks, I describe some of the changes in bank
regulation that triggered bank consolidation and changes in the bank-size
distribution, as well as changes in the banks’ portfolio towards an
increasing share of real estate loans.
Journal: Applied Economics
Pages: 2335-2346
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564143
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564143
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2335-2346
Template-Type: ReDIF-Article 1.0
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Author-Name: Patricia Fraser
Author-X-Name-First: Patricia
Author-X-Name-Last: Fraser
Author-Name: Garry MacDonald
Author-X-Name-First: Garry
Author-X-Name-Last: MacDonald
Title: Commodity prices: how important are real and nominal shocks?
Abstract:
We consider the response of both nominal and real commodity prices on
world markets to real and nominal shocks by hypothesizing that nominal
shocks can permanently affect nominal commodity prices, but can have only
temporary effects on real commodity prices. Real shocks, in contrast, can
have permanent as well as temporary effects on both nominal and real
commodity prices. When nominal and real shocks are decomposed in this
manner, real shocks are found to be of much greater importance to the
observed movements in commodity prices. We use the Blanchard and Quah (BQ,
1989) decomposition to obtain the permanent and temporary components of
the real commodity price series and relate this to the rate of growth of
world industrial production as an indicator of business cycle movements.
The results suggest that the impact of the business cycle is
self-stabilizing in that there is an initial positive effect on growth in
commodity prices followed by a fully offsetting negative effect.
Journal: Applied Economics
Pages: 2347-2357
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564144
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564144
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2347-2357
Template-Type: ReDIF-Article 1.0
Author-Name: Eric C. Y. Ng
Author-X-Name-First: Eric C. Y.
Author-X-Name-Last: Ng
Title: What determines productivity performance of telecommunications services industry? A cross-country analysis
Abstract:
This article investigates the key factors that determine the productivity
performance of telecommunications services industry. A simple theoretical
model is used to illustrate that the Total Factor Productivity (TFP)
growth is attributable to the effects of scale economies, market
competition and technical change. We then examine empirically the effect
of various factors on the TFP growth in the industry using panel data in
12 Organization for Economic Co-operation and Development (OECD) countries
for the period 1983 through 2003. The empirical results are consistent
with the theoretical prediction. A new finding in this article is that
higher machinery and equipment (M&E) capital intensity and human capital
contribute to higher TFP growth in the telecommunications services
industry. The decomposition analysis also suggests that technical change
induced by changes in M&E capital intensity and human capital are
important sources of productivity performance in the industry across the
OECD countries, contributing to about 20--50% and 2--7% of TFP growth,
respectively. These findings highlight the importance of improving the
conditions for M&E capital investment and the quality of human capital,
which in turn could facilitate the adoption of new technologies and
enhance the productivity in the industry.
Journal: Applied Economics
Pages: 2359-2372
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564145
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564145
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2359-2372
Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Oh
Author-X-Name-First: Donghyun
Author-X-Name-Last: Oh
Author-Name: Almas Heshmati
Author-X-Name-First: Almas
Author-X-Name-Last: Heshmati
Author-Name: Hans Lööf
Author-X-Name-First: Hans
Author-X-Name-Last: Lööf
Title: Technical change and total factor productivity growth for Swedish manufacturing and service industries
Abstract:
This article presents alternative specifications of the production
functions of a large panel of Swedish firms for the period 1992 to 2000.
The period can be characterized as a transition when long-run productivity
growth in the Swedish economy improved from being among the weakest to one
of the strongest within the Organization for Economic Co-operation and
Development (OECD). In order to present a detailed exploration of this
dramatic change, the time trend and general index models are applied to
estimate Total Factor Productivity (TFP) growth, rate of technical change
and returns to scale. The models are extended to allow for firm specific
as well as time-varying technical change. The parametric TFP measures are
also compared with the nonparametric Solow residual, and several
hypotheses are tested to explain the growth patterns in the Swedish
economy. It is found that the improved growth rate, initially starting in
large exporting manufacturing firms, after a deep economic crisis at the
beginning of the 1990s, spilled over to the rest of the economy, both
manufacturing and services.
Journal: Applied Economics
Pages: 2373-2391
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564147
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564147
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2373-2391
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Salvino
Author-X-Name-First: Robert
Author-X-Name-Last: Salvino
Author-Name: Michael T. Tasto
Author-X-Name-First: Michael T.
Author-X-Name-Last: Tasto
Author-Name: Geoffrey K. Turnbull
Author-X-Name-First: Geoffrey K.
Author-X-Name-Last: Turnbull
Title: A direct test of direct democracy: New England town meetings
Abstract:
Representative democracies govern most locales in the US, making it
difficult to compare performance relative to direct democracy. New England
states, however, provide an opportunity to test both direct and
representative democracy at the local level. This article uses revealed
preference axioms to compare spending patterns in New England towns and
cities against median voter hypothesis benchmarks. Contrary to previous
evidence, we find no differences between direct and representative
democracy. The results suggest that horizontal competition arising from
local fragmentation minimize differences between direct and representative
local government, providing support for wider applicability of median
voter-based empirical models of local government behaviour in the US.
Journal: Applied Economics
Pages: 2393-2402
Issue: 18
Volume: 44
Year: 2012
Month: 6
X-DOI: 10.1080/00036846.2011.564148
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564148
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Handle: RePEc:taf:applec:44:y:2012:i:18:p:2393-2402
Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Franz
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Franz
Author-Name: Nicole Guertzgen
Author-X-Name-First: Nicole
Author-X-Name-Last: Guertzgen
Author-Name: Stefanie Schubert
Author-X-Name-First: Stefanie
Author-X-Name-Last: Schubert
Author-Name: Markus Clauss
Author-X-Name-First: Markus
Author-X-Name-Last: Clauss
Title: Assessing the employment effects of the German welfare reform -- an integrated CGE-microsimulation approach
Abstract:
The purpose of this article is to quantify the employment effects of the
recent German welfare reform. The key element of this reform was to merge
the coexisting transfer systems Social Assistance (SA) and Unemployment
Assistance (UA) into one unified benefit (Arbeitslosengeld II -- ALG II).
We also consider a second reform scenario that is intended to further
improve the labour supply incentives of low-skilled workers. Our
methodological contribution is to use an integrated CGE-microsimulation
model. In adopting such an approach, we are able to combine the advantages
of microsimulation studies by accounting for the large amount of
heterogeneity in terms of households’ preferences and budget
constraints with the advantages of an applied general equilibrium model.
The latter permits us to identify potential general equilibrium
repercussions through changes in wages and unemployment. The simulations
indicate that the introduction of ALG II results in a negligible increase
in employment of only 45 000 individuals. In contrast, a cut in
benefit levels combined with a decrease in transfer withdrawal is shown to
produce somewhat larger employment effects of about 190 000
individuals.
Journal: Applied Economics
Pages: 2403-2421
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.564149
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564149
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2403-2421
Template-Type: ReDIF-Article 1.0
Author-Name: David A. Savage
Author-X-Name-First: David A.
Author-X-Name-Last: Savage
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: Nerves of steel? Stress, work performance and elite athletes
Abstract:
There is a notable shortage of empirical research directed at measuring
the magnitude and direction of stress effects on performance in a
controlled environment. One reason for this is the inherent difficulties
in identifying and isolating direct performance measures for individuals.
Additionally, most traditional work environments contain a multitude of
exogenous factors impacting individual performance, but controlling for
all such factors is generally unfeasible (omitted variable bias).
Moreover, instead of asking individuals about their self-reported stress
levels, we observe workers’ behaviour in situations that can be
classified as stressful. For this reason, we have stepped outside the
traditional workplace in an attempt to gain greater controllability of
these factors using the sports environment as our experimental space. We
empirically investigate the relationship between stress and performance,
in an extreme pressure situation (football penalty kicks) in a winner take
all sporting environment (FIFA World Cup and UEFA European Cup
competitions). Specifically, we examine all the penalty shootouts between
1976 and 2008 covering in total 16 events. The results indicate that
extreme stressors can have a positive or negative impact on
individuals’ performance. On the other hand, more commonly
experienced stressors do not affect professionals’ performances.
Journal: Applied Economics
Pages: 2423-2435
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.564150
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564150
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2423-2435
Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Chung Hsu
Author-X-Name-First: Yi-Chung
Author-X-Name-Last: Hsu
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: The impact of military technology transfer on economic growth: international evidence
Abstract:
The purpose of this article is to measure the impact of military
technology transfer on economic growth for 67 selected countries during
the period 2000 to 2005 through the application of the Malmquist
productivity index, which is broken down into efficiency change and
technical change. Our main findings are as follows. First, technology
diffusion is all-pervading in half of the sampled countries due to pure
efficiency and scale efficiency changes. Second, a higher-income level and
an excess of arms imports lead to innovative activities. Third,
middle-income countries have higher efficiency and pure efficiency
changes; these contribute to higher total productivity change. Finally,
after separating the impact of capital investment from that of arms
imports, the diffusion of military technology has a more positive and
substantial impact on economic growth, thereby revealing the presence of
externalities between countries.
Journal: Applied Economics
Pages: 2437-2449
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.564152
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564152
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2437-2449
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew W. Hobbs
Author-X-Name-First: Andrew W.
Author-X-Name-Last: Hobbs
Author-Name: Kenneth P. Jameson
Author-X-Name-First: Kenneth P.
Author-X-Name-Last: Jameson
Title: Measuring the effect of bi-directional migration remittances on poverty and inequality in Nicaragua
Abstract:
This article examines the impact of migrants’ remittances on
poverty and income distribution in Nicaragua. Nicaraguan emigrants are
fairly evenly distributed between the US and Costa Rica. Poorer migrants
overwhelmingly migrate to Costa Rica; richer migrants favour the US. This
bi-directional flow provides an opportunity to examine the distributional
impacts of remittances in a situation that offers distinct opportunities
to different groups of prospective migrants. To this end, we use Heckman's
(1979) sample selection method to predict counterfactual
‘no-migration’ consumption figures for Nicaraguan households
whose members have emigrated. Using these estimates, we are able to
compare the current situation to one in which migration had not occurred.
We find that migration to Costa Rica results in increased per capita
household consumption for poor households, while migration to the US leads
to increase in middle class households. The rate, depth and severity of
poverty as measured by the Foster, Greer, Thorbecke Indices (Foster
et al., 1984) decrease, though only slightly.
However, inequality appears to increase, likely because the middle class
benefits from US migration, while the poor tend to make it no farther than
Costa Rica.
Journal: Applied Economics
Pages: 2451-2460
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.564153
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564153
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2451-2460
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Docherty
Author-X-Name-First: Paul
Author-X-Name-Last: Docherty
Author-Name: Steve Easton
Author-X-Name-First: Steve
Author-X-Name-Last: Easton
Title: Market efficiency and continuous information arrival: evidence from prediction markets
Abstract:
Two regularities in financial economics are that prices underreact to
news events and that they display short term momentum. This article tests
for the presence of these regularities in prediction markets offered by
the betting exchange Betfair on the 2008 Ryder Cup Golf Competition.
Betfair offered in play prediction markets on the individual match play
pairings and on the Cup result, with trading being virtually continuous in
all markets. Modelled probabilities of the Cup result were updated
continuously using trades in the individual match play pairings. These
probabilities were then compared with the probabilities of the Cup result
implied by odds in that market. The odds in the market for the Cup result
underreact to both good and bad news that is provided by changes in the
odds in the markets for the individual pairings. Further, these modelled
probabilities Granger cause changes in the probabilities of the Cup result
implied by odds in the market on that outcome. In addition, economically
and statistically significant evidence of momentum is found in the odds in
the market on the Cup result.
Journal: Applied Economics
Pages: 2461-2471
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.564154
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564154
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2461-2471
Template-Type: ReDIF-Article 1.0
Author-Name: J. Rosell-Martinez
Author-X-Name-First: J.
Author-X-Name-Last: Rosell-Martinez
Author-Name: P. Sanchez-Sellero
Author-X-Name-First: P.
Author-X-Name-Last: Sanchez-Sellero
Title: Foreign direct investment and technical progress in Spanish manufacturing
Abstract:
This article analyses the effects of Foreign Direct Investment (FDI) on
technical progress in Spanish manufacturing. Particularly, we study how
FDI's contributions vary depending on the economic structure of the
industry. The results show that most FDI goes to capital-intensive
sectors, especially when those sectors are also Research and Development
(R&D)-intensive. Our estimates of the Solow residual show that the
positive effect of contemporaneous and lagged FDI on manufacturing
productivity is only attributable to capital and R&D intensive industries
in what seems to be related to a dynamic capabilities explanation or to
complementarities with R&D expenditures.
Journal: Applied Economics
Pages: 2473-2489
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.564155
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564155
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2473-2489
Template-Type: ReDIF-Article 1.0
Author-Name: Tino Berger
Author-X-Name-First: Tino
Author-X-Name-Last: Berger
Title: The dynamics of short- and long-run capital mobility: evidence from a time-varying parameter error-correction model
Abstract:
This article analyses the dynamic evolution of capital mobility in eight
Organization for Economic Co-operation and Development (OECD) countries
over the period 1850 to 1992. We estimate an error-correction model of
saving and investment that allows to distinguish between short- and
long-run capital mobility. The parameters of the error-correction model
are allowed to be time-vary ing and are estimated using the Kalman filter
and maximum likelihood technique. We find that both short- and long-run
capital mobility was very high at the end of the nineteenth century but
since then decreased in most countries. However, the magnitude of changes
in long-run capital mobility is very small while the absolute change of
short-run capital mobility is substantial.
Journal: Applied Economics
Pages: 2491-2498
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.564352
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564352
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2491-2498
Template-Type: ReDIF-Article 1.0
Author-Name: Ren頍orissette
Author-X-Name-First: Ren頍
Author-X-Name-Last: Morissette
Author-Name: Yuqian Lu
Author-X-Name-First: Yuqian
Author-X-Name-Last: Lu
Author-Name: Feng Hou
Author-X-Name-First: Feng
Author-X-Name-Last: Hou
Title: Marriage, cohabitation and women's response to changes in the male wage structure
Abstract:
Using microdata and grouped data that cover the period 1996 to 2006, we
assess the extent to which cohabiting women adjust their labour supply to
a lesser extent, if any, than married women in response to changes in male
wages. Both microdata regressions and grouping estimators unambiguously
indicate that cohabiting women respond less to variation in male wages
than married women. However, the magnitude of the difference is not
sizeable. We also assess the magnitude of married men's and cohabiting
men's own wage elasticities and find that they do not differ much.
Combined with the fact that male earnings account for roughly two-thirds
of family earnings, these two findings explain why the impact of changes
in male wages on family earnings is very similar for married couples and
cohabiting couples: in both cases, a 10% decline in male wages appears to
induce roughly a 6% drop in family earnings.
Journal: Applied Economics
Pages: 2499-2516
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566180
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566180
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2499-2516
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Corsi
Author-X-Name-First: Alessandro
Author-X-Name-Last: Corsi
Author-Name: Cristina Salvioni
Author-X-Name-First: Cristina
Author-X-Name-Last: Salvioni
Title: Off- and on-farm labour participation in Italian farm households
Abstract:
Most farms are family business, both in developed and developing
countries. Labour allocation choices of farm household members are
therefore relevant both for production choices in the farm and for rural
labour markets. In particular, off-farm work and combination of on- and
off-farm work (pluriactivity) are viewed as an efficient allocation of
household labour resources. Moreover, labour choice of the children of the
farm household is relevant for farm succession. In this article, we extend
previous literature by estimating in an unified framework labour
participation choices both for on- and off-farm work for operators,
spouses and their eldest children in working age, using a five equation
multivariate probit.
Journal: Applied Economics
Pages: 2517-2526
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566181
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566181
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2517-2526
Template-Type: ReDIF-Article 1.0
Author-Name: Kuo S. Huang
Author-X-Name-First: Kuo S.
Author-X-Name-Last: Huang
Author-Name: Sophia Wu Huang
Author-X-Name-First: Sophia Wu
Author-X-Name-Last: Huang
Title: Consumer welfare effects of increased food and energy prices
Abstract:
In this study, the authors evaluated how much price changes in food and
energy -- two basic living expenditures competing for consumers’
budgets -- would affect consumer welfare. We first estimated a US complete
demand system to quantify the interdependent demand relationships among 11
categories of consumption expenditures. Among the estimates, the own price
elasticities of both food and energy are relatively inelastic, a finding
that explains the dynamics of the recent soaring food and energy prices.
The estimated demand elasticities were then incorporated into the
measurement of Hicksian compensating variation to analyse the consumer
welfare effects of price changes in food and energy. The results indicated
that an increase in food and energy prices would increase compensated
expenditures or incur a substantial consumer welfare loss, creating an
especially heavy burden for low income households.
Journal: Applied Economics
Pages: 2527-2536
Issue: 19
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566182
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566182
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Handle: RePEc:taf:applec:44:y:2012:i:19:p:2527-2536
Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Michael Grimm
Author-X-Name-First: Michael
Author-X-Name-Last: Grimm
Title: Does foreign aid increase private investment? Evidence from panel cointegration
Abstract:
This article uses panel cointegration and causality techniques to examine
the long run relationship between foreign aid and private investment. Our
main result is that aid has a statistically significant negative effect on
private investment. This result is robust to outliers, different measures
and forms of aid, sample selection and the sample period. In addition, we
find that long run causality runs in both directions, suggesting that an
increase in aid reduces private investment and that, in turn, higher
private investment leads to lower aid inflows.
Journal: Applied Economics
Pages: 2537-2550
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566183
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566183
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2537-2550
Template-Type: ReDIF-Article 1.0
Author-Name: Aekapol Chongvilaivan
Author-X-Name-First: Aekapol
Author-X-Name-Last: Chongvilaivan
Title: Learning by exporting and high-tech capital deepening in Singapore manufacturing industries, 1974--2006
Abstract:
A number of fundamental factors enhance the growth of industries’
productivity. Among others, the export-led and high-tech capital deepening
strategies are widely adopted by developing economies. This article
attempts to empirically investigate the extent to which both industrial
development policies affect the Total Factor Productivity Growth (TFPG) in
Singapore manufacturing industries during the period from 1974 to 2006.
Using the panel data estimations, I find that both development strategies
bring about TFPG via nonneutral technological growth, and
the former more largely explains TFPG than does the latter. This study
captures the measure of learning by exporting by the lagged export
intensity and therefore contributes to the literature, in which only the
case of whether or not firms are active in export markets is
conventionally employed. Methodologically, my main contributions are a
more detailed treatment of (nonneutral) technological changes, and an
alternative measure of export intensity.
Journal: Applied Economics
Pages: 2551-2568
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566184
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566184
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2551-2568
Template-Type: ReDIF-Article 1.0
Author-Name: Yui Suzuki
Author-X-Name-First: Yui
Author-X-Name-Last: Suzuki
Title: Binding constraint on economic growth under export-oriented industrialization and globalization
Abstract:
The two-gap model of economic growth implies that different constraints
on economic growth, namely the savings and the foreign exchange
availability, are binding at different times. This article estimates these
varying binding constraints in 16 countries in East and Southeast Asia and
Latin America, and explores their differences across countries, regions
and periods. I show that the East and Southeast Asian countries, which are
recognized to be successful in export-oriented industrialization, are less
constrained by the foreign exchange availability with reinforced export
capacity than the Latin American countries, which had carried some inertia
of import substituting industrialization policy until the 1980s. In
addition, the economic growth turns out to be more constrained by the
domestic savings in recent years, which can be a reflection of capital
account liberalization policies typically implemented in the late 1980s
and 1990s, and/or a diminishing return to export-led growth. In either
case, this might be a factor underlining the recent reconsideration of
export-oriented development strategy to balance past excessive dependence
on the external demand in several countries in East and Southeast Asia.
Journal: Applied Economics
Pages: 2569-2576
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566185
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566185
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2569-2576
Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Tregenna
Author-X-Name-First: Fiona
Author-X-Name-Last: Tregenna
Title: What are the distributional implications of halving poverty in South Africa when growth alone is not enough?
Abstract:
The United Nations Millennium Declaration commits to halving extreme
poverty between 2000 and 2015. The South African government has set a goal
of halving poverty by 2014, although the meaning of this goal has not yet
been defined. This article frames government's stated target of halving
poverty by 2014 in terms of specific measures of the poverty gap and
poverty headcount ratio, using income and expenditure survey microdata.
With the poverty line as defined here, approximately half the South
African population falls below the poverty line. Despite this, the
aggregate poverty gap is surprisingly small at about 3% of gross domestic
product. Projections of poverty in 2014 under various growth scenarios
indicate that growth alone will be insufficient to halve poverty by then,
and that any worsening of distribution will put the target of halving
poverty by 2014 far beyond reach. However, projections of the effects of a
range of growth and distributional scenarios on poverty, using a new
method for simulating pro-poor distributional change, indicate that
halving poverty appears feasible with moderate growth rates and fairly
mild pro-poor distributional change. The results are indicative as to the
scale of distributional changes necessary to halve poverty under various
growth scenarios.
Journal: Applied Economics
Pages: 2577-2596
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566186
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566186
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2577-2596
Template-Type: ReDIF-Article 1.0
Author-Name: Myeong Hwan Kim
Author-X-Name-First: Myeong Hwan
Author-X-Name-Last: Kim
Author-Name: Nodir Adilov
Author-X-Name-First: Nodir
Author-X-Name-Last: Adilov
Title: The lesser of two evils: an empirical investigation of foreign direct investment-pollution tradeoff
Abstract:
This article investigates the relationship between Foreign Direct
Investment (FDI) and pollution measured by carbon dioxide (CO2)
emissions. The results suggest that while lax environmental regulations
might attract FDI, the foreign companies utilize less polluting technology
as compared to local firms in low-income countries. Thus, FDI does not
necessarily increase pollution levels in the host countries. The findings,
therefore, simultaneously support the pollution haven and the pollution
halo hypotheses.
Journal: Applied Economics
Pages: 2597-2606
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566187
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566187
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2597-2606
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge E. Araña
Author-X-Name-First: Jorge E.
Author-X-Name-Last: Araña
Author-Name: Carmelo J. León
Author-X-Name-First: Carmelo J.
Author-X-Name-Last: León
Title: Scale-perception bias in the valuation of environmental risks
Abstract:
The valuation of environmental risks is commonly approached with the
utilization of stated preference methods such as contingent valuation. In
these methods, money is utilized as the scale that reflects the
individual's underlying utility function. However, this scale can vary
across individuals due to different perceptions on what are the right or
appropriate bounds for Willingness To Pay (WTP). In this article, we test
for scale-perception bias and propose a correction method based on the
utilization of anchoring vignettes that define different degrees of
preference for the nonmarket good. The proposed method is applied to study
the commonly found anomaly ‘probability neglect’, which is
defined by the insensitivity to the probability levels in the valuation of
environmental risks. The results show that probability neglect disappears
when WTP responses are corrected for self-perception bias through the
utilization of the anchoring vignettes approach.
Journal: Applied Economics
Pages: 2607-2617
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566188
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566188
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2607-2617
Template-Type: ReDIF-Article 1.0
Author-Name: Yeşim Kuştepeli
Author-X-Name-First: Yeşim
Author-X-Name-Last: Kuştepeli
Author-Name: Yaprak Gülcan
Author-X-Name-First: Yaprak
Author-X-Name-Last: Gülcan
Author-Name: Sedef Akgüngör
Author-X-Name-First: Sedef
Author-X-Name-Last: Akgüngör
Title: Transportation infrastructure investment, growth and international trade in Turkey
Abstract:
Investment in transportation infrastructure facilitate the movement of
the goods; leading to higher standards of living for the people of the
whole globe. Although infrastructure is indispensable to achieve the main
development targets in developing countries, such as urbanization,
industrialization and sustainable economic development (Kim, 2006), the
relationship between infrastructure expenditures, economic growth and
international trade is inconclusive. The aim of this study is to
investigate the effect of investment on highway infrastructure on
international trade and economic growth in Turkey for the period of 1970
to 2005. The empirical results from causality and cointegration analysis
suggest only a very weak short run effect of share of exports in Gross
National Product (GNP) on highway transportation expenditures but no long
run relationships between highway infrastructure expenditures, economic
growth and international trade in Turkey.
Journal: Applied Economics
Pages: 2619-2629
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566189
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566189
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2619-2629
Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary
Author-X-Name-First: M. Ali
Author-X-Name-Last: Choudhary
Author-Name: Adnan Haider
Author-X-Name-First: Adnan
Author-X-Name-Last: Haider
Title: Neural network models for inflation forecasting: an appraisal
Abstract:
We assess the power of diverse Artificial Neural-Network (ANN) models as
forecasting tools for monthly inflation rates for 28 Organization for
Economic Co-operation and Development (OECD) countries. In the context of
short out-of-sample forecasting horizon we find that, on average, the ANN
models were a superior predictor for inflation for 45% while the
Autoregressive model of order one (AR1) model performed better for 23% of
the countries. Furthermore, we develop arithmetic combinations of several
ANN models and find that these may also serve as credible tools for
forecasting inflation.
Journal: Applied Economics
Pages: 2631-2635
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566190
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566190
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2631-2635
Template-Type: ReDIF-Article 1.0
Author-Name: Jürgen Antony
Author-X-Name-First: Jürgen
Author-X-Name-Last: Antony
Author-Name: Thomas Grebel
Author-X-Name-First: Thomas
Author-X-Name-Last: Grebel
Title: Technology flows between sectors and their impact on large-scale firms
Abstract:
In this article we highlight the importance of technology flows between
sectors and their impact on the labour productivity of large-scale
corporations. Based on theoretical considerations, we explore
technological spillovers between the sectors of an economy. Large-scale
corporations usually focus on certain sectors but make use of a wide range
of technological knowledge from other sectors. Thereby, technological
knowledge built up in sectors by continuous R&D activities does not spill
over without bounds but is directed by firms’ absorptive
capacities. We use firms’ patent portfolio to empirically calculate
the sector affiliation and therewith the firms’ absorptive
capacities in order to estimate the impact of technology diffusion on
labour productivity. Fortune 500 firms serve as data base.
Journal: Applied Economics
Pages: 2637-2651
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566191
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566191
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2637-2651
Template-Type: ReDIF-Article 1.0
Author-Name: Nick Drydakis
Author-X-Name-First: Nick
Author-X-Name-Last: Drydakis
Title: Sexual orientation and labour relations: new evidence from Athens, Greece
Abstract:
We use data from the 2008--2009 Athens Area Study (AAS) to provide the
first evidence on the relationship between men's sexual orientation and
wages in the Greek capital, Athens. Gay and bisexual men are found to
receive significantly lower monthly wages than heterosexual male workers
after accounting for demographic and occupational characteristics. The
estimations reveal that educated gay and bisexual workers face lower wage
differentials than less-educated gay and bisexual workers, which is
consistent with the statistical theory of discrimination. However, wage
gaps are significant at all educational attainment levels, suggesting that
these workers face strong prejudices in the Athenian labour market. The
same pattern holds also across all occupations and sectors. Furthermore,
to better understand the determinants of the wage gaps, we compare
gay/bisexual men with both married and unmarried heterosexual men. By
making these comparisons, we are able to disentangle the penalty
associated with being unmarried from other human-capital explanations for
the wage gap.
Journal: Applied Economics
Pages: 2653-2665
Issue: 20
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566194
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566194
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Handle: RePEc:taf:applec:44:y:2012:i:20:p:2653-2665
Template-Type: ReDIF-Article 1.0
Author-Name: Oluyemisi Kuku
Author-X-Name-First: Oluyemisi
Author-X-Name-Last: Kuku
Author-Name: Steven Garasky
Author-X-Name-First: Steven
Author-X-Name-Last: Garasky
Author-Name: Craig Gundersen
Author-X-Name-First: Craig
Author-X-Name-Last: Gundersen
Title: The relationship between childhood obesity and food insecurity: a nonparametric analysis
Abstract:
Childhood obesity and food insecurity are major public health concerns in
the United States and other developed countries. Research on the
relationship between the two has provided mixed results across a variety
of data sets and empirical methods. Common throughout this research,
however, is the use of parametric frameworks for empirical analyses. This
study moves beyond parametric methods by examining the relationship
between childhood obesity and food insecurity among low-income children
with nonparametric regression techniques. We examine data from the Child
Development Supplement (CDS) of the Panel Study of Income Dynamics (PSID),
a nationally representative data set from the US. Consistent with recent
work, our parametric analyses indicate that there is no statistically
significant relationship between childhood obesity and food insecurity. In
contrast, our nonparametric results indicate that the probability of being
obese varies markedly with the level of food insecurity being experienced
by the child. Moreover, this relationship differs across relevant
subgroups including those defined by gender, race/ethnicity and income.
Fully understanding the relationship between childhood obesity and food
insecurity has significant policy implications.
Journal: Applied Economics
Pages: 2667-2677
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566192
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566192
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2667-2677
Template-Type: ReDIF-Article 1.0
Author-Name: Kishor Sharma
Author-X-Name-First: Kishor
Author-X-Name-Last: Sharma
Author-Name: Pemasiri J. Gunawardana
Author-X-Name-First: Pemasiri J.
Author-X-Name-Last: Gunawardana
Title: The role of price and nonprice factors in predicting Australia's trade performance
Abstract:
This article investigates the role of price and nonprice factors in
predicting Australia's trade performance. Results broadly suggest that
Australia's trade performance is largely explained by the nonprice factors
namely, R&D, reliability of domestic supply, aggregate world demand and
Foreign Direct Investment (FDI) flows in long run. Price factors such as,
relative price of Australian exports and domestic prices are also
important predictors of trade competitiveness. The policy implications of
these findings are that there are dividends in terms of improved trade
performance by encouraging R&D expenditure, attracting FDI, improving
domestic supply and implementing appropriate policies to improve price
competitiveness.
Journal: Applied Economics
Pages: 2679-2686
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566193
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566193
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2679-2686
Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨀠 Bel鮠Lozano
Author-X-Name-First: Mar𨀠 Bel鮠
Author-X-Name-Last: Lozano
Title: Analysing the effect of excess cash accumulation on financial decisions
Abstract:
In this current moment of crisis it is very important for firms to hold a
suitable amount of cash. But it is also very important to analyse how this
amount of cash affects firm value. Here an in-depth study is made of the
determination of firm value centring our attention on the problem of
excess cash accumulation. This article adds important value to the
existing literature since, employing the panel data methodology in the
sample of Spanish nonfinancial firms, it identifies whether excess cash
holding affects firm value in general, and investment, financing and
dividend decisions in particular. The results show how asymmetric
information among the economic agents of the firm affects the cash
reserves. In particular, shareholders could penalize the investment made
by these firms and consider the positive effect that the debt in
particular and the dividend policies exert on the firm. Moreover, the
results reveal the importance of financial flexibility as opposed to the
arguments provided by agency theory.
Journal: Applied Economics
Pages: 2687-2698
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566195
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566195
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2687-2698
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobo Wu
Author-X-Name-First: Xiaobo
Author-X-Name-Last: Wu
Author-Name: Yanbin Jiang
Author-X-Name-First: Yanbin
Author-X-Name-Last: Jiang
Title: Sectoral role change in transition China: a network analysis from 1990 to 2005
Abstract:
In this article, by using the data collected from input--output table, we
conduct a detailed investigation on the evolution pattern during economy
development of China from 1990 to 2005. By using network analysis at
national, cluster and individual level, we find some interesting insights,
also in order to identify the difference between cluster levels, we
proposed a cluster centralization method to analyse the role of the
cluster in the network. This study shows that during the transition
process of China, there exist some similarity and differences in each
selected time. Each period studied have some similar distributions of key
sectors, including the cores, i.e. chemical industry, nonmetallic mineral
products, construction, business. However, significant differences also
exists, for example, the 2005 system is characterized as higher degrees of
systemic connection and hierarchy, while the 1990s system has looser
density and less centralization. Additionally, the high tech clusters
(i.e. electronics and instruments) including high tech industry (i.e.
electronics and telecommunications equipment manufacturers) has played a
much more important role in 2005 than that in early 1990s. Also the high
tech cluster and service cluster have contributed a lot to the transition
and development of the whole country, the results also confirm that some
theory concluded from developed country can also applied to developing
economies such as China.
Journal: Applied Economics
Pages: 2699-2715
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566196
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566196
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2699-2715
Template-Type: ReDIF-Article 1.0
Author-Name: Hong-wei Zhang
Author-X-Name-First: Hong-wei
Author-X-Name-Last: Zhang
Author-Name: Wei-guo Chen
Author-X-Name-First: Wei-guo
Author-X-Name-Last: Chen
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Title: Urban--rural income disparities and development in a panel data set of China for the period from 1978 to 2006
Abstract:
We examine the relationship between urban--rural income disparities and
development in a panel data set of 30 provinces and regional subsets of
China during the period of 1978 to 2006. There is an inverted-U
relationship between the urban--rural income gap and per capita Gross
Domestic Product (GDP). Financial development by scale widens the
urban--rural income gap in all regional samples, while financial sector
efficiency and rural bank loans may reduce it in some regions. Government
spending raises the urban--rural income gap as well. We also examine the
effects of urbanization, openness and education.
Journal: Applied Economics
Pages: 2717-2728
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566197
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566197
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2717-2728
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Yau Man Ze-To
Author-X-Name-First: Samuel Yau Man
Author-X-Name-Last: Ze-To
Title: Estimating value-at-risk under a Heath--Jarrow--Morton framework with jump
Abstract:
This article proposes a new methodology for measuring Value-at-Risk
(hereafter VaR) using a model that incorporates both volatility and jumps.
Heath--Jarrow--Morton (HJM) model has been used for the valuation of
interest rate derivatives. This study extends the use of HJM model to the
estimation VaR. This article specifically uses a two-factor HJM
jump-diffusion model for the computation. The study models the Eurodollar
futures prices using its derivatives. In addition, this article uses a new
volatility specification of Ze-To (2002) to construct the HJM dynamics.
The result indicates that the VaR model using HJM jump-diffusion framework
performs well in capturing the nonnormality and in providing accurate VaR
forecasts in the in-sample and out-sample tests.
Journal: Applied Economics
Pages: 2729-2741
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566198
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566198
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2729-2741
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Simon Sturn
Author-X-Name-First: Simon
Author-X-Name-Last: Sturn
Title: The impact of monetary policy on unemployment hysteresis
Abstract:
This article investigates the hypothesis that the extent to which
hysteresis occurs in the aftermath of recessions depends on monetary
policy reactions. The degree of hysteresis is explained econometrically by
the extent of monetary easing during a recession and by standard variables
for labour market institutions in a pooled cross country analysis using
quarterly data. The sample includes 40 recessions in 19 Organization for
Economic Co-operation and Development (OECD) countries for which the
required data is available. The time period lasts for the period from 1980
to 2007. This article builds on Ball (1999) and extends the sample of
countries, the time period under investigation and the set of control
variables.
Journal: Applied Economics
Pages: 2743-2756
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566199
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566199
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2743-2756
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Christoph Ruelke
Author-X-Name-First: Jan Christoph
Author-X-Name-Last: Ruelke
Author-Name: Christian Pierdzioch
Author-X-Name-First: Christian
Author-X-Name-Last: Pierdzioch
Author-Name: Georg Stadtmann
Author-X-Name-First: Georg
Author-X-Name-Last: Stadtmann
Title: On the internal consistency of short-term, medium-term and long-term oil price forecasts
Abstract:
We derive internal consistency restrictions on short-, medium- and
long-term oil price forecasts. We then analyse whether oil price forecasts
extracted from the Survey of Professional Forecasters (SPF) conducted by
the European Central Bank (ECB) satisfy these internal consistency
restrictions. We find that neither short-term forecasts are consistent
with medium-term forecasts nor that medium-term forecasts are consistent
with long-term forecasts. Using a more complex expectation formation
structure featuring a distributed lag structure, however, we find stronger
evidence of internal consistency of medium-term forecasts with long-term
forecasts.
Journal: Applied Economics
Pages: 2757-2765
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566201
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566201
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2757-2765
Template-Type: ReDIF-Article 1.0
Author-Name: M. Piracha
Author-X-Name-First: M.
Author-X-Name-Last: Piracha
Author-Name: Y. Zhu
Author-X-Name-First: Y.
Author-X-Name-Last: Zhu
Title: Precautionary savings by natives and immigrants in Germany
Abstract:
This article analyses the savings behaviour of natives and immigrants in
Germany. It is argued that uncertainty about future income and legal
status (in case of immigrants) is a key component in the determination of
the level of precautionary savings. Using the German dataset, we exploit a
natural experiment arising from a change in the nationality law in Germany
to estimate the importance of precautionary savings. Using a
Difference-in-Differences (DiD) approach, we find a significant reduction
in savings and remittances for immigrants after the easing of citizenship
requirements, compared to the pre-reform period. Our parametric
specification shows that introduction of the new nationality law reduces
the gap in marginal propensity to save between natives and immigrants by
up to 80%. These findings suggest that many of the differences in terms of
the savings behaviour between natives and immigrants are driven by the
savings arising from the uncertainties about future income and legal
status rather than cultural differences.
Journal: Applied Economics
Pages: 2767-2776
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566202
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566202
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2767-2776
Template-Type: ReDIF-Article 1.0
Author-Name: David E. Bloom
Author-X-Name-First: David E.
Author-X-Name-Last: Bloom
Author-Name: David Canning
Author-X-Name-First: David
Author-X-Name-Last: Canning
Author-Name: Erica S. Shenoy
Author-X-Name-First: Erica S.
Author-X-Name-Last: Shenoy
Title: The effect of vaccination on children's physical and cognitive development in the Philippines
Abstract:
We use data from the Cebu Longitudinal Health and Nutrition Survey
(CLHNS) in the Philippines to link vaccination in the first 2 years of
life with later physical and cognitive development in children. We use
propensity score matching to estimate the causal effect of vaccination on
child development. We find no effect of vaccination on later height or
weight, but full childhood vaccination for measles, polio, Tuberculosis
(TB), Diphtheria, Pertussis and Tetanus (DPT) significantly increases
cognitive test scores relative to matched children who received no
vaccinations. The size of the effect is large, raising test scores, on
average, by about half an SD.
Journal: Applied Economics
Pages: 2777-2783
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566203
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566203
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2777-2783
Template-Type: ReDIF-Article 1.0
Author-Name: Themis Kokolakakis
Author-X-Name-First: Themis
Author-X-Name-Last: Kokolakakis
Author-Name: Fernando Lera-López
Author-X-Name-First: Fernando
Author-X-Name-Last: Lera-López
Author-Name: Thanos Panagouleas
Author-X-Name-First: Thanos
Author-X-Name-Last: Panagouleas
Title: Analysis of the determinants of sports participation in Spain and England
Abstract:
This article investigates the role of sociodemographic characteristics,
educational and economic variables on sports participation in a
comparative way in two European countries: Spain and England. Adopting a
broad concept of sport, as in the common European approach, we analyse the
determinants of sports participation in 40 different professional and
nonprofessional sports and recreational activities in both countries. The
research involves a comparative analysis between the data of England and
Spain based on two logistic regressions. The regression equation of every
country tests the effect of 17 binary explanatory variables on a dependent
binary variable for participation. Higher education level, professional
occupation, younger age and being male are all factors associated with
more sports participation. Although there is no difference in the
direction of the factor effects on participation between England and
Spain, there is considerable variation in their relative strength, which
has sport policy implications in the two nations.
Journal: Applied Economics
Pages: 2785-2798
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566204
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566204
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Handle: RePEc:taf:applec:44:y:2012:i:21:p:2785-2798
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Drakos
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Drakos
Title: Extent and intensity of investment with multiple capital goods
Abstract:
Overall investment is the product of the number of capital goods for
which triggering has occurred (the extensive or reductive margin) and the
depth of investment per capital good (intensive margin). Based on a
longitudinal plant-level data and using dynamic panel techniques we
investigated the validity of the hypothesis that the intensity of
investment increases as its extent increases. Our results indicate a
strong linkage between the extent and intensity of investment decisions,
finding which holds both for positive and negative investment decisions.
This linkage suggests that the decision on how many capital types to
initiate investment is closely connected to the decision regarding the
depth of investment expenditures. Moreover, the intensity--extent
derivative remains positive but its magnitude decreases with plant size,
providing indirect evidence for higher complementarity between capital
types for smaller plants.
Journal: Applied Economics
Pages: 2799-2810
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.566205
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566205
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2799-2810
Template-Type: ReDIF-Article 1.0
Author-Name: J. Jarl
Author-X-Name-First: J.
Author-X-Name-Last: Jarl
Author-Name: U.-G. Gerdtham
Author-X-Name-First: U.-G.
Author-X-Name-Last: Gerdtham
Title: Does drinking affect long-term sickness absence? A sample selection approach correcting for employment and accounting for drinking history
Abstract:
This article studies the effect of alcohol consumption on the probability
of long-term sickness-related absenteeism for women. Using Swedish matched
survey and register data, we apply sample selection models to correct for
nonrandom sampling into paid employment. There are three main findings of
the study. First, diverging from the most prevalent consumption group
(long-term light drinkers) is associated with an increased probability of
long-term sickness, ranging from 10% for long-term heavy drinkers to 18%
for former drinkers. Second, controlling for former consumption errors
(especially former drinker and former abstainer errors) and sample
selection into employment are important for unbiased, consistent
estimations. Third, by predicting the effect of changes in consumption on
long-term sickness-related absence, we find that alcohol only explains a
small part of the overall picture of long-term sickness-related
absenteeism. Notwithstanding this fact, long-term sickness-related
absenteeism due to alcohol adds up to substantial productivity loss for
society. Our conclusion is that the commonly found U-shaped relationship
between current alcohol consumption and labour market outcomes remains for
women, after controlling for past consumption and selection effects. A
change in consumption level increases probability of long-term
sickness-related absence, compared to individuals with constant
consumption levels.
Journal: Applied Economics
Pages: 2811-2825
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.566206
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566206
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2811-2825
Template-Type: ReDIF-Article 1.0
Author-Name: Chiang Chun-Hao
Author-X-Name-First: Chiang
Author-X-Name-Last: Chun-Hao
Author-Name: Yang Jian-Min
Author-X-Name-First: Yang
Author-X-Name-Last: Jian-Min
Title: A bibliometric study of financial risk literature: a historic approach
Abstract:
This study probes into the development of financial risk literatures
through the perspective of bibliometrics. The research samples were
collected from the relevant international financial business bibliographic
databases. A total of 2727 entries in a span of 29 years from 1970 to 2009
were collected and the results are summarized as follows: (1) the
financial risk literatures under influence of the financial turmoil in
Asia achieved substantial growth from 1997 to 1998 and an exponential
growth curve during the global financial turmoil from 2007 to 2009; (2)
the literatures were mainly journals and articles written in English; (3)
the United States ranked first in sector productivity; (4) the author
productivity of the financial risks was consistent with the Lotka's Law
and (5) the document types of the financial risk literatures were mostly
dissertation papers on economics and business.
Journal: Applied Economics
Pages: 2827-2839
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.566208
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566208
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2827-2839
Template-Type: ReDIF-Article 1.0
Author-Name: Ya Wu
Author-X-Name-First: Ya
Author-X-Name-Last: Wu
Author-Name: Cesar L. Escalante
Author-X-Name-First: Cesar L.
Author-X-Name-Last: Escalante
Author-Name: Lewell F. Gunter
Author-X-Name-First: Lewell F.
Author-X-Name-Last: Gunter
Author-Name: James E. Epperson
Author-X-Name-First: James E.
Author-X-Name-Last: Epperson
Title: A decomposition approach to analysing racial and gender biases in Farm Service Agency's lending decisions
Abstract:
This study provides a different perspective in revisiting the racial and
gender discrimination issue at the Farm Service Agency (FSA). Employing
the Oaxaca--Blinder decomposition method, this study analyses disparities
in approved loan amounts among racial and gender classes of borrowers.
This study's results indicate substantial differentials in approved loan
amount gaps between racial and gender classes, favouring white and female
borrowers, respectively. Further scrutiny of the borrowers’
comparative financial conditions presented to FSA to support their loan
applications, however, indicate that these borrower groups significantly
dominate their peers in a number of measures that indicate their financial
strengths and relatively greater capability to repay their future lending
obligations. Hence, this study's results can hardly be construed as
evidence of biased lending decisions as these borrower groups should
rightfully be offered more favourable loan terms, such as larger loan
amounts, by the FSA.
Journal: Applied Economics
Pages: 2841-2850
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.566210
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566210
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2841-2850
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Author-Name: Stephanie Vermeer
Author-X-Name-First: Stephanie
Author-X-Name-Last: Vermeer
Title: Inequality amongst the wealthiest and its link with economic growth
Abstract:
In this article, we correlate the key features of the distribution of
wealth of the 500 wealthiest individuals in the Netherlands with economic
growth and stock market returns for the period 1998 to 2009. We show that
each year the distribution obeys a power law and that the key parameter
measures the degree of inequality. Our main finding is that more
inequality amongst the wealthiest is associated with higher economic
growth.
Journal: Applied Economics
Pages: 2851-2858
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.566211
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566211
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2851-2858
Template-Type: ReDIF-Article 1.0
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Author-Name: Kristen L. Fantuzzi
Author-X-Name-First: Kristen L.
Author-X-Name-Last: Fantuzzi
Title: Demand for carbonated soft drinks: implications for obesity policy
Abstract:
This article examines consumer choices of Carbonated Soft Drinks (CSDs)
and their implications for obesity policy. Demand in relation to product
and consumer heterogeneity is estimated via a random coefficients logit
model (Berry et al., 1995) applied to quarterly
scanner data for 26 brands in 20 US cities, involving 40 000
consumers. Counterfactual experiments show that caloric taxes could be
effective in decreasing caloric CSD consumption though having little
impact on obesity incidence.
Journal: Applied Economics
Pages: 2859-2865
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568397
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568397
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2859-2865
Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Ottoz
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Ottoz
Author-Name: Marina Di Giacomo
Author-X-Name-First: Marina
Author-X-Name-Last: Di Giacomo
Title: Diversification strategies and scope economies: evidence from a sample of Italian regional bus transport providers
Abstract:
A growing number of Local Public Transport (LPT) companies diversify
their production lines by providing a large set of services. We
investigate the cost structure of a sample of LPT companies operating in
Italy and assess the presence and the magnitude of scope economies. We
split the whole sample of firms according to their diversification
strategy: private firms, mainly diversifying in competitive transport
related services and public firms providing nontransport services in
regulated markets. Scope economies appear sizeable for both groups but
higher for firms pursuing a transport related strategy, suggesting caution
in the multiutility development pursued by public LPT firms in Italy.
Journal: Applied Economics
Pages: 2867-2880
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568399
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568399
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2867-2880
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Alichi
Author-X-Name-First: Ali
Author-X-Name-Last: Alichi
Author-Name: Rabah Arezki
Author-X-Name-First: Rabah
Author-X-Name-Last: Arezki
Title: An alternative explanation for the resource curse: the income effect channel
Abstract:
This article provides an alternative explanation for the ‘resource
curse’ based on the income effect resulting from high government
current spending in resource rich economies. Using a simple life cycle
framework, we show that private investment in the nonresource sector is
adversely affected if private agents expect extra government current
spending financed through resource sector revenues in the future. This
income channel of the resource curse is stronger for countries with lower
degrees of openness and forward altruism. We empirically validate these
findings by estimating nonhydrocarbon sector growth regressions using a
panel of 25 oil-exporting countries over the period 1992 to 2005.
Journal: Applied Economics
Pages: 2881-2894
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568400
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568400
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2881-2894
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Clemente
Author-X-Name-First: Jesus
Author-X-Name-Last: Clemente
Author-Name: Carmen Marcuello
Author-X-Name-First: Carmen
Author-X-Name-Last: Marcuello
Author-Name: Antonio Montañes
Author-X-Name-First: Antonio
Author-X-Name-Last: Montañes
Title: Government Social Spending and GDP: has there been a change in social policy?
Abstract:
Government Social Spending (GSS) is made up of a very heterogeneous range
of variables, monetary transfers for retirement or illness, unemployment
benefits, family services, active labour market policies and health
expenditure. We believe that each of these components is of enormous
importance to the economic development of a country. As has often been
affirmed, however, GSS is one of the economic aggregates most sensitive to
the ups and downs of economic growth. In moments of crisis, sharp cuts are
almost immediate, and these may or may not be recovered when times are
good. In this article, we examine the sensitivity of GSS to the evolution
of Gross Domestic Product (GDP) in order to reveal the relationship
between the two.
Journal: Applied Economics
Pages: 2895-2905
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568401
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568401
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2895-2905
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Haan
Author-X-Name-First: Peter
Author-X-Name-Last: Haan
Author-Name: Michał Myck
Author-X-Name-First: Michał
Author-X-Name-Last: Myck
Title: Multi-family households in a labour supply model: a calibration method with application to Poland
Abstract:
Models of cooperative and noncooperative behaviour opened the household
‘black box’ and allowed for individual treatment of partners
in couples. However, labour supply literature has so far largely ignored a
broader issue -- the distinction of single versus multi-family
(‘complex’) households. We propose a method to account for
multi-family household structure by borrowing from recent applications of
the collective model to identify the degree of sharing. We assume that
each household is characterized by a between-family sharing parameter,
which is calibrated on estimated preferences, observed labour market
status and other characteristics. We apply the method to Polish labour
market data.
Journal: Applied Economics
Pages: 2907-2919
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568402
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568402
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2907-2919
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Zubaidi Baharumshah
Author-X-Name-First: Ahmad Zubaidi
Author-X-Name-Last: Baharumshah
Author-Name: Siew-Voon Soon
Author-X-Name-First: Siew-Voon
Author-X-Name-Last: Soon
Title: Mean reversion in bilateral real exchange rates: evidence from the Malaysian ringgit
Abstract:
This study examines behaviour of the Consumer Price Index (CPI)-based
Real Exchange Rates (RERs) of the ringgit against the currencies of
Malaysia's major trading partners. The empirical results, which are
derived from newly developed tests advocated by Lee and Strazicich (LS,
2003) and Narayan and Popp (NP, 2010) that allow for two breaks in the
series, provide conflicting results. We obtain weaker support for
Purchasing Power Parity (PPP) using the Narayan and Popp (2010) test. By
truncating the sampling period into two sub-periods, we find that PPP
holds for majority of the Malaysia's bilateral exchange rate
vis-à-vis its major trading partners during the
pre-crisis period. The 1997 currency crisis, however, has weakened the
evidence in favour of PPP hypothesis in the strict sense.
Journal: Applied Economics
Pages: 2921-2933
Issue: 22
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568406
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568406
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Handle: RePEc:taf:applec:44:y:2012:i:22:p:2921-2933
Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Gurudeo Anand Tularam
Author-X-Name-First: Gurudeo Anand
Author-X-Name-Last: Tularam
Title: Which way does water flow? An econometric analysis of the global price integration of water stocks
Abstract:
Around US$600 billion of investment is desperately needed to address
forecasted huge shortages in water supply globally. A number of worldwide
investors -- so-called water funds -- have started to take up this
challenge. For these global water investors, knowledge about the extent of
integration between the water sectors of financial markets is highly
important. According to international portfolio diversification theory,
the less (more) integrated markets are, the more (less) benefits there are
from international diversification. In this study, we investigate the
extent and manner of interdependence among the US, European and Asian
water sector of the equity markets based on Vector Autoregression (VAR),
Granger causality and impulse response analyses. We find that world water
stock market prices are indeed significantly interdependent although this
interdependence varies across time periods. Each market quickly responds
to shocks from each other and completes its response within 3 days. Hence,
for water investors, international diversification that is undertaken just
within the water sector will not be beneficial. The result also implies
that there is the risk of crossmarket contagion -- that is, price
volatility spill over across water sectors of different financial markets,
and therefore, water authorities in one market should take cognisance of
events in other markets.
Journal: Applied Economics
Pages: 2935-2944
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568403
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568403
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Handle: RePEc:taf:applec:44:y:2012:i:23:p:2935-2944
Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: Don J. Webber
Author-X-Name-First: Don J.
Author-X-Name-Last: Webber
Author-Name: Geoff Perry
Author-X-Name-First: Geoff
Author-X-Name-Last: Perry
Title: Real wages, inflation and labour productivity in Australia
Abstract:
This article presents an analysis of real wages, inflation and labour
productivity interrelationships using cointegration, Granger causality
and, most importantly, structural change tests. Applications of tests to
Australian data over the 1965 to 2007 period corroborate the presence of a
structural break in 1985 and show that a 1% increase in manufacturing
sector real wages led to an increase in manufacturing sector productivity
of between 0.5% and 0.8%. Comparable estimates for the effect of inflation
on manufacturing sector productivity have limited statistical
significance. Granger causality test results suggest that real wages and
inflation both Granger cause productivity in the long run.
Journal: Applied Economics
Pages: 2945-2954
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568405
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568405
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Handle: RePEc:taf:applec:44:y:2012:i:23:p:2945-2954
Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Iacone
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Iacone
Author-Name: Steve Martin
Author-X-Name-First: Steve
Author-X-Name-Last: Martin
Author-Name: Luigi Siciliani
Author-X-Name-First: Luigi
Author-X-Name-Last: Siciliani
Author-Name: Peter C. Smith
Author-X-Name-First: Peter C.
Author-X-Name-Last: Smith
Title: Modelling the dynamics of a public health care system: evidence from time-series data
Abstract:
The English National Health Service (NHS) was established in 1948, and
has therefore yielded some long time series data on health system
performance. Waiting time for inpatient care have been a persistent policy
concern since the creation of the NHS. After developing a simple
theoretical framework of the dynamic interaction between key indicators of
health system performance, we investigate empirically the relationship
between hospital activity, waiting time and population characteristics
using aggregate time-series data for the NHS over the period 1952 to 2003.
Structural Vector Autoregression (S-VAR) suggests that in the long run:
higher activity is associated with lower waiting times
(elasticity = −0.9); an increase in the elderly
population is associated with higher waiting time
(elasticity = 1.3). In the short run, higher lagged waiting
time leads to higher activity (elasticity = 0.12). We also
find that shocks in waiting times are countered by higher activity, so the
effect is only temporary.
Journal: Applied Economics
Pages: 2955-2968
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568407
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568407
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Handle: RePEc:taf:applec:44:y:2012:i:23:p:2955-2968
Template-Type: ReDIF-Article 1.0
Author-Name: Mir M. Ali
Author-X-Name-First: Mir M.
Author-X-Name-Last: Ali
Author-Name: Aliaksandr Amialchuk
Author-X-Name-First: Aliaksandr
Author-X-Name-Last: Amialchuk
Author-Name: Song Gao
Author-X-Name-First: Song
Author-X-Name-Last: Gao
Author-Name: Frank Heiland
Author-X-Name-First: Frank
Author-X-Name-Last: Heiland
Title: Adolescent weight gain and social networks: is there a contagion effect?
Abstract:
Previous studies on the spread of obesity in social networks have focused
on the contemporaneous effect of peer weight outcomes on individuals. This
article is the first to investigate the longer term effects, within
adolescence and from adolescence into early adulthood, of peers on
individual weight outcomes. Using data from the first three waves of the
National Longitudinal Study of Adolescent Health (Add Health), and
accounting for correlated effects using a number of empirical strategies
including school-level fixed effects and accounting for neighbourhood
preferences, we show that Body Mass Index (BMI) and overweight status in a
person's friendship network influence their BMI and likelihood of being
overweight. The evidence suggests that there is some persistence of the
effects of past peer weight experiences on individual weight outcomes
during adolescence and into early adulthood. The findings are consistent
with adolescence being an important formative period of
individuals’ preference for ideal physique and own body weight
aspirations. We conclude that policy makers should be particularly
concerned with interventions during childhood and adolescence, in order to
slow the spread of obesity by promoting a healthy body image and positive
health behaviours.
Journal: Applied Economics
Pages: 2969-2983
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568408
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568408
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Template-Type: ReDIF-Article 1.0
Author-Name: Eddie Chi-man Hui
Author-X-Name-First: Eddie Chi-man
Author-X-Name-Last: Hui
Author-Name: Xian Zheng
Author-X-Name-First: Xian
Author-X-Name-Last: Zheng
Title: The dynamic correlation and volatility of real estate price and rental: an application of MSV model
Abstract:
This article investigates the dynamic conditional correlation between
price and rental among four types of real estate markets, namely housing,
retail, office and factory. In the case of Hong Kong (from January 1993 to
December 2008), the Dynamic Conditional Correlation Multivariate
Stochastic Volatility (DCC--MSV) model and Bayesian Markov Chain Monte
Carlo (MCMC) are employed to capture the volatility and time varying
correlation of property price and rental in each market. The empirical
results demonstrate that the volatilities of price are significantly
larger than those of rental for each type of real estate markets
throughout the whole sample period. Besides, the findings indicate that
the correlations between price and rental are time-varying, and the
average correlation in the housing market is much larger than those in the
other three markets. Also, the conditional correlations in the factory
market are the most volatile, while those in the office market are
relatively stable. Additionally, two particularly volatile periods have
been identified in and around 1997 and 2003.
Journal: Applied Economics
Pages: 2985-2995
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568409
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568409
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Handle: RePEc:taf:applec:44:y:2012:i:23:p:2985-2995
Template-Type: ReDIF-Article 1.0
Author-Name: St鰨ane Mussard
Author-X-Name-First: St鰨ane
Author-X-Name-Last: Mussard
Author-Name: Patrick Richard
Author-X-Name-First: Patrick
Author-X-Name-Last: Richard
Title: Linking Yitzhaki's and Dagum's Gini decompositions
Abstract:
In this article we show that the Gini coefficient is simultaneously
decomposable both by sources of income and by populations of income
receivers for nonoverlapping income distributions: the so-called
first-best Gini multi-decomposition. We show that this multidimensional
decomposition is useful for many reasons: (i) it is related to the degree
of inequality aversion of the decision maker, (ii) it is especially well
suited to study inequalities between poor and nonpoor people, (iii) it
enables one to measure the impact of marginal tax reforms on within- and
between-group inequalities, respectively.
Journal: Applied Economics
Pages: 2997-3010
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568410
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568410
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Handle: RePEc:taf:applec:44:y:2012:i:23:p:2997-3010
Template-Type: ReDIF-Article 1.0
Author-Name: F鬩x Domez-Barrero
Author-X-Name-First: F鬩x
Author-X-Name-Last: Domez-Barrero
Author-Name: Julio López-Laborda
Author-X-Name-First: Julio
Author-X-Name-Last: López-Laborda
Title: Taxation and the portfolio structure of Spanish households
Abstract:
Using a sample of 5962 Spanish households from the Survey of Household
Finances (EFF) undertaken by the Bank of Spain, this article describes the
structure of their portfolio, and estimates both a Probit model and a
Tobit model to test how taxation affects, respectively, the decision to
invest in each asset and the relative importance of each asset within the
household portfolio. The influence of taxation is measured using the
average marginal personal income tax rate of the household. The
estimations performed show that the marginal tax rate is significant and
displays the sign expected to explain both the holding of tax favourable
assets and their weight in the household portfolio.
Journal: Applied Economics
Pages: 3011-3027
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568411
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568411
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Handle: RePEc:taf:applec:44:y:2012:i:23:p:3011-3027
Template-Type: ReDIF-Article 1.0
Author-Name: Diego Romero-Ávila
Author-X-Name-First: Diego
Author-X-Name-Last: Romero-Ávila
Author-Name: Carlos Usabiaga
Author-X-Name-First: Carlos
Author-X-Name-Last: Usabiaga
Title: Disaggregate evidence on Spanish inflation persistence
Abstract:
This article investigates the degree of persistence of different
inflation rates for the Spanish economy using the Consumer Price Index
(CPI) for the aggregate as well as for the regions, provinces and eight
groups of goods and services, in addition to the Producer Price Index
(PPI) for the aggregate and 24 industrial sectors. For that purpose, we
employ: (1) the unit-root tests with good size and power of Ng and Perron
(2001) with the small-sample bias correction developed by Perron and Qu
(2007); (2) the nonlinear Exponential Smooth Transition Autoregressive
(ESTAR) unit-root test proposed by Kapetanios et al.
(2003); (3) median-unbiased estimations of the persistence parameter and
the respective confidence intervals through the grid-bootstrap method
proposed by Hansen (1999) and (4) median-unbiased estimations of the
half-life of a shock in addition to the associated confidence intervals
through the method based on impulse-response functions proposed by
Gospodinov (2004). The results from the application of these techniques
indicate that most of the CPI-based inflation rate series clearly contain
a unit root. As regards the results for the PPI-based inflation rate
series, we have provided evidence that the aggregate series appears to
contain a unit root, while at the industry level the inflation rate series
are found to be nonlinear stationary in 13 sectors. On the basis of this
robust evidence of high persistence in inflation, policymakers should pay
more attention to any shock hitting inflation, since the effects are
expected to be long-lasting, particularly for consumer prices. Along these
lines, it is essential to implement correcting reforms with the aim of
raising price adjustment flexibility if one wants to avoid having to
intervene actively in the markets to reach the inflation target.
Journal: Applied Economics
Pages: 3029-3046
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.568412
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568412
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Handle: RePEc:taf:applec:44:y:2012:i:23:p:3029-3046
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Buehn
Author-X-Name-First: Andreas
Author-X-Name-Last: Buehn
Author-Name: Mohammad Reza Farzanegan
Author-X-Name-First: Mohammad Reza
Author-X-Name-Last: Farzanegan
Title: Smuggling around the world: evidence from a structural equation model
Abstract:
This article uses a Multiple Indicators Multiple Causes (MIMIC) model to
analyse the determinants of smuggling. The analysis reveals that higher
corruption and a lower rule of law encourage smuggling. Tariffs and trade
restrictions are important push factors, while a higher Black Market
Premium (BMP) discourages smugglers. Based on the MIMIC estimates, we
calculate an index of smuggling which provides a ranking for 54 countries.
We find that smuggling is rampant in Cameroon, Pakistan and Kenya while it
is least prevalent in Switzerland, Finland and Sweden.
Journal: Applied Economics
Pages: 3047-3064
Issue: 23
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570715
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570715
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Handle: RePEc:taf:applec:44:y:2012:i:23:p:3047-3064
Template-Type: ReDIF-Article 1.0
Author-Name: Jaba Ghonghadze
Author-X-Name-First: Jaba
Author-X-Name-Last: Ghonghadze
Author-Name: Thomas Lux
Author-X-Name-First: Thomas
Author-X-Name-Last: Lux
Title: Modelling the dynamics of EU economic sentiment indicators: an interaction-based approach
Abstract:
This article estimates a simple univariate model of expectation or
opinion formation in continuous time adapting a ‘canonical’
stochastic model of collective opinion dynamics (Weidlich and Haag, 1983;
Lux, 1995, 2009a). This framework is applied to a selected data set on
survey-based expectations from the rich EU business and consumer survey
database for 12 European countries. The model parameters are estimated
through Maximum Likelihood (ML) and numerical solution of the transient
probability density functions for the resulting stochastic process. The
model's success is assessed with respect to its out-of-sample forecasting
performance relative to univariate Time Series (TS) models of the
Autoregressive Moving Average model,
ARMA(p, q) and Autoregressive
Fractionally Integrated Moving Average,
ARFIMA(p, d, q) varieties. These tests speak for a slight superiority of the
canonical opinion dynamics model over the alternatives in the majority of
cases.
Journal: Applied Economics
Pages: 3065-3088
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570716
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570716
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Handle: RePEc:taf:applec:44:y:2012:i:24:p:3065-3088
Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Feng Lee
Author-X-Name-First: Cheng-Feng
Author-X-Name-Last: Lee
Author-Name: Ching-Chuan Tsong
Author-X-Name-First: Ching-Chuan
Author-X-Name-Last: Tsong
Title: A revisit on real interest rate parity hypothesis -- simulation evidence from efficient unit root tests
Abstract:
A set of unit root tests are applied to test the existence of long-run
real interest rate parity among the G-10 countries over the period 1971M1
to 2007M2. Rather than trusting the asymptotic distributions, this article
uses simulation techniques to establish the small sample distributions of
these tests, conditional on the stationary and nonstationary processes.
The empirical results indicate that the tests have stable finite-sample
sizes and higher size-adjusted powers such that the two estimated
processes can be distinguished from each other. Thus, for six of the nine
countries, their series are more likely to come from the estimated
Autoregressive (AR) stationary process than from the nonstationary
process. Noticeably, the testing results are rather different from those
using the asymptotic distributions, in which only three countries support
the real interest rate parity.
Journal: Applied Economics
Pages: 3089-3099
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570717
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570717
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Handle: RePEc:taf:applec:44:y:2012:i:24:p:3089-3099
Template-Type: ReDIF-Article 1.0
Author-Name: Avi Herbon
Author-X-Name-First: Avi
Author-X-Name-Last: Herbon
Author-Name: Uriel Spiegel
Author-X-Name-First: Uriel
Author-X-Name-Last: Spiegel
Author-Name: Joseph Templeman
Author-X-Name-First: Joseph
Author-X-Name-Last: Templeman
Title: Simulation study of the price differentiation effect in a stochastic deteriorating inventory with heterogeneous consumers -- freshness sensitivity
Abstract:
A fixed price policy regardless of expiration date may result in unsold
inventory and sales loss. Price reduction over time as the expiration date
approaches motivates customers to purchase all items, including the ones
that are left with only a short interval until their expiration. We
conduct a discrete event simulation that captures the main characteristics
of this phenomenon. Results show that a moderate differentiation of price
increases profits by 6%, a larger differentiation reduces profits. Profits
are the highest for freshness-oriented customers. A fixed price policy is
preferred in an environment of large variance and expected near term
expirations.
Journal: Applied Economics
Pages: 3101-3119
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570718
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570718
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Handle: RePEc:taf:applec:44:y:2012:i:24:p:3101-3119
Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore Capasso
Author-X-Name-First: Salvatore
Author-X-Name-Last: Capasso
Author-Name: Oreste Napolitano
Author-X-Name-First: Oreste
Author-X-Name-Last: Napolitano
Title: Testing for the stability of money demand in Italy: has the Euro influenced the monetary transmission mechanism?
Abstract:
Stability of money demand is a crucial issue for the efficacy of monetary
policy. This is particularly true in the presence of significant exogenous
shocks to the monetary system. By implementing the most recent econometric
testing procedures, this article intends to investigate the consistency of
the stability of money demand in Italy, one of the larger European
Monetary Union (EMU) countries, before and after the EMU. Among others,
the objective is, indeed, to ascertain the effect of a change in the
currency regime on the monetary aggregates and to provide a valid
empirical model which is a viable tool for policy performance.
Journal: Applied Economics
Pages: 3121-3133
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570719
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570719
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Handle: RePEc:taf:applec:44:y:2012:i:24:p:3121-3133
Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Ayari
Author-X-Name-First: Nadia
Author-X-Name-Last: Ayari
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Pedro Mendi
Author-X-Name-First: Pedro
Author-X-Name-Last: Mendi
Title: Renewable energy innovations in Europe: a dynamic panel data approach
Abstract:
We investigate the determinants of renewable energy R&D intensity and the
impact of renewable energy innovations on firm performance, using several
dynamic panel data models. We estimate these models using a large data set
of European firms from 19 different countries, with some patenting
activity in areas related to renewable energies during the 1987 to 2007
period. Our results confirm our priors on the determinants of the rapid
development of renewable energy R&D intensity during the past decades.
Additionally, we find evidence that renewable patent intensity has a
significant dynamic impact on the stock market value of firms.
Journal: Applied Economics
Pages: 3135-3147
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570720
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570720
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Handle: RePEc:taf:applec:44:y:2012:i:24:p:3135-3147
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed A. Marouani
Author-X-Name-First: Mohamed A.
Author-X-Name-Last: Marouani
Author-Name: David A. Robalino
Author-X-Name-First: David A.
Author-X-Name-Last: Robalino
Title: Assessing interactions among education, social insurance and labour market policies in Morocco
Abstract:
This article develops a general equilibrium model to assess the impact
that integrated reforms of macroeconomic, education and social protection
policies can have on employment. The model presents three innovations.
First, it formalizes the production of skills in the economy by following
sex--age cohorts through the various levels of the education and training
systems, given dropout and repetition rates. Second, it incorporates a
module that projects social insurance expenditures as a function of the
demographic structure of the country and the rules of the pension system.
Finally, it develops a very detailed description of the labour market,
where informality reflects strategic decisions by workers and not
necessarily exclusion. The model is applied to Morocco. The results of
various simulations illustrate the importance of coordinating macro,
education and social protection policies in order to achieve meaningful
effects on employment levels. In particular, we show that isolated
interventions to improve the internal efficiency of the education system
can aggravate the unemployment problem; that subsidies to investments are
more efficient in sectors intensive in skilled labour; and that not
controlling the growth of pension expenditures and the tax-wedge can
depress employment in the formal sector.
Journal: Applied Economics
Pages: 3149-3167
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570721
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570721
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Handle: RePEc:taf:applec:44:y:2012:i:24:p:3149-3167
Template-Type: ReDIF-Article 1.0
Author-Name: Jenifer Piesse
Author-X-Name-First: Jenifer
Author-X-Name-Last: Piesse
Author-Name: Bruce Allen Hearn
Author-X-Name-First: Bruce Allen
Author-X-Name-Last: Hearn
Title: The law of one price: an examination of price integration between Europe and regional markets in Africa
Abstract:
This study examines the degree of price-integration of equity indices
between the major markets of Africa, namely Morocco, Tunisia, Egypt,
Kenya, Nigeria, Namibia and South Africa with the European markets of
London and Paris. Vector Autoregressive and Autoregressive Distributed Lag
methods reveal that African markets are largely price-segmented. The only
markets that are price-integrated have shared economic and financial
institutions, such as Namibia and South Africa, and Egypt, Tunisia and
France. The evidence suggests that development policy should be focussed
on enhancing existing institutions rather than embarking prematurely on
regional integration.
Journal: Applied Economics
Pages: 3169-3193
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570722
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570722
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Handle: RePEc:taf:applec:44:y:2012:i:24:p:3169-3193
Template-Type: ReDIF-Article 1.0
Author-Name: Bahar Bayraktar Saglam
Author-X-Name-First: Bahar Bayraktar
Author-X-Name-Last: Saglam
Author-Name: Burak Gunalp
Author-X-Name-First: Burak
Author-X-Name-Last: Gunalp
Title: The Beveridge curve and labour market dynamics in Turkey
Abstract:
This article investigates the dynamics of unemployment and vacancy rates
in Turkey during the period 1951 to 2008 by means of a Beveridge Curve
(BC). The time-series analysis of unemployment and vacancies as well as
two other relevant labour market variables, real wages and real labour
productivity, strongly suggests inefficiency in the Turkish labour market.
A stable long-run relationship between unemployment rate and vacancy rate
is found for Turkey, that is, the existence of a negatively sloped BC is
verified. The estimated Turkish BC reflects the structural problems and
lack of flexibility in the labour market. The modified BC with real wages
and labour productivity reveals that labour productivity has no
significant effect on unemployment rate whereas wages have positive and
significant effects on the same variable.
Journal: Applied Economics
Pages: 3195-3202
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570725
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570725
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Handle: RePEc:taf:applec:44:y:2012:i:24:p:3195-3202
Template-Type: ReDIF-Article 1.0
Author-Name: Albert Sol魏ll頍
Author-X-Name-First: Albert
Author-X-Name-Last: Sol魏ll頍
Author-Name: Pilar Sorribas-Navarro
Author-X-Name-First: Pilar
Author-X-Name-Last: Sorribas-Navarro
Title: The dynamic adjustment of local government budgets: does Spain behave differently?
Abstract:
The aim of this article is to analyse whether Spanish municipalities
adjust in response to budget shocks and (if so) which elements of the
budget they are more likely to adjust. The methodology we use to answer
these questions is a Vector Error Correction Model (VECM), estimated with
data from a panel of Spanish municipalities during the period 1988 to
2006. Our results confirm that Spanish municipalities do indeed make
adjustments in response to fiscal shocks (i.e. the deficit is stationary
in the long run). We compare our results with those obtained for US and
Germany to evaluate if the viability of local finance depends on the
institutional arrangement and to analyse how it affects the adjustment
patterns. We observe that grants have a more important role in the
adjustment process in environments where either they have an equalization
objective or where there is no clear rule that determines their
distribution. This fact can generate a moral hazard problem: governments
tend to spend more due to the expected intervention by the central
government. Own revenues have a lower adjustment capacity in environments
where subcentral governments have limited fiscal autonomy. These results,
however, suggest that the viability of the local finance system is
feasible with different institutional arrangements.
Journal: Applied Economics
Pages: 3203-3213
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.570723
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570723
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3203-3213
Template-Type: ReDIF-Article 1.0
Author-Name: I. Chatterjee
Author-X-Name-First: I.
Author-X-Name-Last: Chatterjee
Author-Name: R. Ray
Author-X-Name-First: R.
Author-X-Name-Last: Ray
Title: Does the evidence on corruption depend on how it is measured? Results from a cross-country study on microdata sets
Abstract:
While much of the existing literature on corruption looks at the effect
of corruption on macro variables such as growth rates and income
distribution, this study provides a departure by focussing on victims of
corruption by using microdata to compare civilian and business corruption.
This study finds that businesses face a stronger incidence of bribe
demands than individuals. Though there are several differences between the
determinants of the two forms of bribe victimization, there are also some
similarities. Policies to combat corruption need to take into account both
the differences and the similarities.
Journal: Applied Economics
Pages: 3215-3227
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.570724
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570724
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3215-3227
Template-Type: ReDIF-Article 1.0
Author-Name: Lee Chin
Author-X-Name-First: Lee
Author-X-Name-Last: Chin
Author-Name: M. Azali
Author-X-Name-First: M.
Author-X-Name-Last: Azali
Title: Testing the validity of the monetary model for ASEAN with structural break
Abstract:
This study examines the validity of the long run structural relations
underlying the monetary exchange rate model for Malaysia, Singapore, The
Philippines and Thailand. Take into consideration the possibility of
structural change, we examined the models using recent developed
techniques of testing unit root and cointegration with a structural break.
Our findings of three cointegrating relations among the variables in the
system were further identified by testing theoretical restrictions on the
cointegrating equations. The long run relationships were able to be
interpreted according to the theory, hence, support the long run validity
of the monetary exchange rate model.
Journal: Applied Economics
Pages: 3229-3236
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.570726
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570726
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3229-3236
Template-Type: ReDIF-Article 1.0
Author-Name: Jim Allen
Author-X-Name-First: Jim
Author-X-Name-Last: Allen
Author-Name: Andries de Grip
Author-X-Name-First: Andries
Author-X-Name-Last: de Grip
Title: Does skill obsolescence increase the risk of employment loss?
Abstract:
In this article, we analyse whether technological change induces skill
obsolescence and early labour market exit, and to what extent training
participation and on the job learning reduce these risks. Using panel data
on older workers, we find that workers report skill obsolescence more
often when learning is a structural characteristic of the job. This
perceived skill obsolescence is not related to a higher probability of
losing employment. Instead, workers who experience skill obsolescence
appear to learn more on the job and participate more often in training,
which decreases the risk of losing employment. These results are
consistent with the dynamic model of skill obsolescence and employment
loss we develop in this article. Moreover, we find that when workers with
long job tenures decrease their training participation, this is an early
indicator of future job loss.
Journal: Applied Economics
Pages: 3237-3245
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.570727
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570727
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3237-3245
Template-Type: ReDIF-Article 1.0
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Author-Name: Salvador Gil-Pareja
Author-X-Name-First: Salvador
Author-X-Name-Last: Gil-Pareja
Title: Convergence in car prices among European countries
Abstract:
This article contributes to the literature on price convergence in Europe
by investigating the existence of stochastic and deterministic convergence
of car prices in the EU15 countries. We apply recently developed
econometric techniques that allow for multiple structural breaks to an
up-to-date dataset. We find considerable evidence of both types of
convergence in our sample of countries and car models, therefore
suggesting a tendency for relative prices to equalize over time. In
addition, we find evidence regarding the importance in this convergence
process of both legislative changes taking place in the years 1996 and
2002, and the implementation of Economic and Monetary Union (EMU).
Journal: Applied Economics
Pages: 3247-3254
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.570728
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570728
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3247-3254
Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Author-Name: Hsu-Ling Chang
Author-X-Name-First: Hsu-Ling
Author-X-Name-Last: Chang
Author-Name: Meng-Nan Zhu
Author-X-Name-First: Meng-Nan
Author-X-Name-Last: Zhu
Title: Flexible Fourier stationary test in purchasing power parity for African countries
Abstract:
This study applies stationary test with a Fourier function proposed by
Enders and Lee (2004, 2009) to test the validity of long run Purchasing
Power Parity (PPP) to assess the nonstationary properties of the real
exchange rate for 20 African countries. We find that our approximation has
higher power to detect U shaped breaks and smooth breaks than linear
method if the true data generating process of exchange rate is in fact a
stationary nonlinear process. We examine the validity of PPP from the
nonlinear point of view and provide robust evidence clearly indicate that
PPP holds true for almost African countries. Our findings point out their
exchange rate adjustment is mean reversion towards PPP equilibrium values
in a nonlinear way.
Journal: Applied Economics
Pages: 3255-3262
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.570729
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570729
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3255-3262
Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Yu-Shao Liu
Author-X-Name-First: Yu-Shao
Author-X-Name-Last: Liu
Title: Revisiting purchasing power parity for African countries: with nonlinear panel unit-root tests
Abstract:
This study applies Panel Seemingly Unrelated Regressions (SUR) Kapetanios
et al. (Kapetanios--Shin--Snell (KSS), SURKSS)
tests, proposed by Wu and Lee (2009), to investigate the properties of
long-run Purchasing Power Parity (PPP) in 15 African countries. The
empirical results from the univariate unit root and panel based unit root
tests indicate that PPP does not hold for these 15 countries under study.
However, Panel SURKSS tests indicate that PPP is valid for four of these
15 countries. These results have important policy implications for these
15 African countries under study.
Journal: Applied Economics
Pages: 3263-3273
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.570730
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570730
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3263-3273
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Title: Central Government versus private sector wages and cognitive skills: evidence using endogenous switching regression
Abstract:
The importance of estimation techniques that allow for nonrandom
selection of workers into the public and private sectors has been
established in the theoretical and empirical literature. A separate body
of work has explored the contribution of cognitive and other basic skills
to earnings. This article brings together these two strands of empirical
literature using Adult Literacy and Lifeskills (ALL) survey data for
Norway and Bermuda. In the case of Norway, results from both Ordinary
Least Squares (OLS) and a switching regression model agree that cognitive
skills are rewarded more in the public sector and that, in both sectors,
the main effect is the direct effect of skills on earnings. In the case of
Bermuda, however, switching regression estimates are substantially
different with respect to the how skills affect earnings; furthermore,
controlling for cognitive skills changes the nature of selection and,
hence, the estimates of sector wage differentials.
Journal: Applied Economics
Pages: 3275-3286
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.572854
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572854
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3275-3286
Template-Type: ReDIF-Article 1.0
Author-Name: F. Holm-Hadulla
Author-X-Name-First: F.
Author-X-Name-Last: Holm-Hadulla
Author-Name: S. Hauptmeier
Author-X-Name-First: S.
Author-X-Name-Last: Hauptmeier
Author-Name: P. Rother
Author-X-Name-First: P.
Author-X-Name-Last: Rother
Title: The impact of expenditure rules on budgetary discipline over the cycle
Abstract:
We study the impact of expenditure rules on the propensity for
governments to deviate from their expenditure plans in response to
surprising cyclical developments. Theoretical considerations suggest that
due to political fragmentation in the budgetary process expenditure policy
might be prone to a procyclical bias. However, this tendency may be
mitigated by strictly enforced expenditure rules. These hypotheses are
tested against data from a panel of EU Member States. Our key findings are
that (1) deviations between actual and planned government expenditure tend
to be positively related to output gap surprises, and (2) expenditure
rules reduce this procyclical bias. These results are particularly
pronounced when the analysis is confined to spending items with a high
degree of budgetary flexibility.
Journal: Applied Economics
Pages: 3287-3296
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.572855
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572855
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3287-3296
Template-Type: ReDIF-Article 1.0
Author-Name: Chandra Bahadur Adhikari
Author-X-Name-First: Chandra Bahadur
Author-X-Name-Last: Adhikari
Author-Name: Trond Bjorndal
Author-X-Name-First: Trond
Author-X-Name-Last: Bjorndal
Title: Analyses of technical efficiency using SDF and DEA models: evidence from Nepalese agriculture
Abstract:
Alleviation of poverty is a central issue in Nepal. Given the limited
stock of land and the infant/unorganized manufacturing sector, increased
demand for food has to be satisfied by improving production efficiency.
This article examines how this could be achieved. Stochastic distance
function and data envelopment analysis models identify the existence of a
high degree of technical inefficiency in Nepalese agriculture, suggesting
that there is a substantial prospect of increasing agricultural
productivity using the existing level of inputs and resources more
efficiently. Among the three farm sizes in the data set, medium size
farmers achieve a higher technical efficiency than large and small farm
sizes, suggesting that productive efficiency can be increased with the
encouragement of creating medium size holdings. The observed decreasing
returns to scale also implies that productivity gains could be achieved by
breaking up of large farms into small family farms. The technical
inefficiency model suggests the potential for shifting the production
frontier upwards by providing ownership of land, increasing
farmers’ education and knowledge, and increasing land quality,
including irrigation facilities.
Journal: Applied Economics
Pages: 3297-3308
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.572856
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572856
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3297-3308
Template-Type: ReDIF-Article 1.0
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Antonio Moreno
Author-X-Name-First: Antonio
Author-X-Name-Last: Moreno
Author-Name: Seonghoon Cho
Author-X-Name-First: Seonghoon
Author-X-Name-Last: Cho
Title: The Deaton paradox in a long memory context with structural breaks
Abstract:
This article contributes to the Permanent Income Hypothesis (PIH) and
excess consumption smoothness debate in the context of fractional
integration. We show that the excess consumption smoothness result is a
consequence of the quarterly data frequency commonly employed in the
empirical work. In fact, the I(1) hypothesis is rejected
for the income process with monthly data in favour of a fractional
integration order lower than 1. Moreover, if a structural break is taken
into account, we observe a substantial reduction in the degree of
consumption smoothness, especially after the break found in 1975.
Journal: Applied Economics
Pages: 3309-3322
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.572857
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572857
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3309-3322
Template-Type: ReDIF-Article 1.0
Author-Name: Isabelle Clerc
Author-X-Name-First: Isabelle
Author-X-Name-Last: Clerc
Author-Name: Olivier L’Haridon
Author-X-Name-First: Olivier
Author-X-Name-Last: L’Haridon
Author-Name: Alain Paraponaris
Author-X-Name-First: Alain
Author-X-Name-Last: Paraponaris
Author-Name: Camelia Protopopescu
Author-X-Name-First: Camelia
Author-X-Name-Last: Protopopescu
Author-Name: Bruno Ventelou
Author-X-Name-First: Bruno
Author-X-Name-Last: Ventelou
Title: Fee-for-service payments and consultation length in general practice: a work--leisure trade-off model for French GPs
Abstract:
This article presents an adaptation of the labour supply model applied to
the independent medical sector. First, we model simultaneous General
Practitioner (GP) decisions on both the leisure time and the consultation
length for two payment schemes: fixed fees and unregulated fees. The
objective of this econometric study is to validate the theoretical
prediction that doctors under unregulated fees may make choices about the
length of patient consultations independent of their personal leisure
decision. Indeed, according to our empirical results, the bidirectional
link between leisure choice and consultation length -- verified with fixed
fees -- does not hold any longer under unregulated fees. Our findings can
be seen as a necessary but not a sufficient condition to legitimize
unregulated fees in general practice.
Journal: Applied Economics
Pages: 3323-3337
Issue: 25
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.572858
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572858
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:25:p:3323-3337
Template-Type: ReDIF-Article 1.0
Author-Name: Johane Dikgang
Author-X-Name-First: Johane
Author-X-Name-Last: Dikgang
Author-Name: Anthony Leiman
Author-X-Name-First: Anthony
Author-X-Name-Last: Leiman
Author-Name: Martine Visser
Author-X-Name-First: Martine
Author-X-Name-Last: Visser
Title: Elasticity of demand, price and time: lessons from South Africa's plastic-bag levy
Abstract:
Policy makers in many countries have perceived plastic-bag litter as a
problem, and have used a variety of regulatory tools to address it. South
Africa's current legislation on plastic-bags came into effect on 7 May
2003. It increased the thickness of the plastic used, charged a small levy
and required that bags be sold rather than distributed gratis. These
regulations sharply reduced consumption of plastic bags in the short term,
but unlike the Irish and Danish levies have failed to curb their use
meaningfully in the long run. It is suggested that the initial sharp fall
in use of bags was a result of loss aversion rooted in an endowment effect
(the bags having long been a free good). Once consumers became accustomed
to paying for bags, demand slowly rose to its historic levels.
Journal: Applied Economics
Pages: 3339-3342
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.572859
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572859
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3339-3342
Template-Type: ReDIF-Article 1.0
Author-Name: Gylfi Zoega
Author-X-Name-First: Gylfi
Author-X-Name-Last: Zoega
Title: Employment and asset prices
Abstract:
A medium-term relationship exists between share prices, normalized by
labour productivity, and the rate of unemployment in the Organization for
Economic Co-operation and Development (OECD) countries. This helps explain
decadal changes in mean unemployment, such as the shift to higher mean
unemployment in the Continental European countries in the 1970s and 1980s
that coincided with a fall in the level of share prices, as well as
differences in mean unemployment between countries.
Journal: Applied Economics
Pages: 3343-3355
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.572860
File-URL: http://hdl.handle.net/10.1080/00036846.2011.572860
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3343-3355
Template-Type: ReDIF-Article 1.0
Author-Name: Takanori Ida
Author-X-Name-First: Takanori
Author-X-Name-Last: Ida
Title: Beyond mobile number portability: measuring consumer preferences for service portability in Japan's mobile phone market
Abstract:
Japan's mobile phone market has been oligopolized by three incumbents who
are seeking vertically integrated business models, which may prevent
competitors from using platform layers to provide original services. We
conduct two types of conjoint analysis to measure consumer stated
preferences and draw two main conclusions from the analyses. First, the
average consumer is willing to pay more than JPY 2000 (US $20) to increase
mobile service portability. Second, the average consumer's willingness to
pay corresponds to JPY 100--200 (US $1--2) per song for securing music
download platforms. A dilemma exists in consumer preferences for service
portability in Japan's mobile phone market, namely the choice between free
mobile service portability and convenient music download platforms.
Journal: Applied Economics
Pages: 3357-3369
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577011
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577011
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3357-3369
Template-Type: ReDIF-Article 1.0
Author-Name: Yasuyuki Sawada
Author-X-Name-First: Yasuyuki
Author-X-Name-Last: Sawada
Author-Name: Jonna P. Estudillo
Author-X-Name-First: Jonna P.
Author-X-Name-Last: Estudillo
Title: The MDGs and exit time: the case of the Philippines
Abstract:
This article evaluates whether the Philippines will be able to halve the
incidence of poverty between 1990 and 2015. Using the concept of exit time
and household‐level data, we find that the Philippines as a whole
will not be able to comply with Target 1 of the Millennium Development
Goals (MDGs), although 15 of its provinces will be able to do so. These
provinces are closer to Manila, characterized by higher per capita
expenditure growth rates, and had lower incidence of poverty in 1988. This
suggests the importance of policies to mitigate the regional disparity in
achieving the MDGs.
Journal: Applied Economics
Pages: 3371-3377
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577012
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577012
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3371-3377
Template-Type: ReDIF-Article 1.0
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Author-Name: Em Tostão
Author-X-Name-First: Em
Author-X-Name-Last: Tostão
Title: Effects of horizontal consolidation under bilateral imperfect competition between processors and retailers
Abstract:
This article considers bilateral imperfect competition between processors
and retailers to estimate the trade off between market power and cost
efficiency. The model is based on pricing rules from a firm's profit
maximization and nests both oligopoly and oligopsony models. An empirical
analysis for US beef processors and retailers suggests that processors
tend to exercise oligopsony market power in procuring cattle, but they are
unlikely to exercise market power on retailers. When retailers and
processors are considered as one integrated sector, efficiency effects
from the increased concentration in the US beef packing industry are
slightly larger than market power effects. When processors’ market
power is considered separately from retailers’ market power, the
difference between cost saving and market power effects becomes greater.
The cost elasticity estimate, 0.99, indicates that a further merger would
result in little economies of scale in the future. Therefore, although we
find that efficiency effects are currently larger than market power
effects, a further increase in concentration in the US beef processing
industry could narrow the gap between the two effects.
Journal: Applied Economics
Pages: 3379-3389
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577013
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577013
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3379-3389
Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Justino
Author-X-Name-First: Patricia
Author-X-Name-Last: Justino
Title: Multidimensional welfare distributions: empirical application to household panel data from Vietnam
Abstract:
This article explores the empirical application of theoretical
multidimensional welfare distribution analysis techniques to real
household welfare distributions. The article operationalizes recent
conceptual developments in multidimensional distribution theory and
assesses their usefulness for the measurement of multidimensional
household inequality. The results strongly highlight the importance of
bringing nonmonetary aspects of household welfare into the forefront of
inequality analysis. Agreement over the various approaches to the
measurement of multidimensional inequality entails, however, nontrivial
decisions that may limit the practical usefulness of these measures. We
suggest that the use of multidimensional inequality ranges and the
application of restrictive dominance criteria to multidimensional welfare
distributions may open significant scope for further developments in the
empirical analysis of multidimensional inequality.
Journal: Applied Economics
Pages: 3391-3405
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577014
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577014
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3391-3405
Template-Type: ReDIF-Article 1.0
Author-Name: S颡stien Wälti
Author-X-Name-First: S颡stien
Author-X-Name-Last: Wälti
Title: The myth of decoupling
Abstract:
The decoupling hypothesis is the idea that business cycles in emerging
market economies have become more independent from business cycles in
advanced economies in recent years. Decoupling essentially amounts to a
structural break in the degree of business cycle interdependence between
the two groups of economies, and it can be tested as such. We develop an
innovative measure of business cycle interdependence based on the
Euclidean distance, available at the annual frequency, which allows for a
proper test for a structural break in a graphical setup. We also make use
of a standard econometric test. Both approaches point to the same
conclusion: there has been no decoupling in recent years. If anything, the
degree of business cycle interdependence has become stronger.
Journal: Applied Economics
Pages: 3407-3419
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577015
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577015
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3407-3419
Template-Type: ReDIF-Article 1.0
Author-Name: Shakil Quayes
Author-X-Name-First: Shakil
Author-X-Name-Last: Quayes
Title: Depth of outreach and financial sustainability of microfinance institutions
Abstract:
The primary justification for subsidizing Microfinance Institutions
(MFIs) is their enhancement of social welfare by extending credit to the
poor households. Therefore, recent emphasis on their financial
self-sufficiency has created concern, that this may adversely affect the
mission of social outreach. Utilizing data from 702 MFIs operating in 83
countries, this study shows empirical evidence of a positive complementary
relationship between financial sustainability and depth of outreach.
Journal: Applied Economics
Pages: 3421-3433
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577016
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577016
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3421-3433
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian R. Bell
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Bell
Author-Name: Chris Brooks
Author-X-Name-First: Chris
Author-X-Name-Last: Brooks
Author-Name: David Matthews
Author-X-Name-First: David
Author-X-Name-Last: Matthews
Author-Name: Charles Sutcliffe
Author-X-Name-First: Charles
Author-X-Name-Last: Sutcliffe
Title: Over the moon or sick as a parrot? The effects of football results on a club's share price
Abstract:
This article considers the impact of match results on the stock returns
of English football clubs. We propose that the magnitude of the response
to a given result depends on the importance of the game, which is measured
in two ways. First, we consider the extent to which the clubs are close
rivals vying for similar league positions, as winning such games is
particularly significant. Second, we argue that each individual game
becomes more important for those clubs likely to be promoted or relegated
as the season draws to a close, since a given match will have increasing
information content concerning the final league position of the club.
Using a fairly large panel comprising data for 19 clubs, we find some
support for the notion that stock prices are affected more by the results
of important matches than matches of lesser importance. We also observe
that the difference between the number of points the club secures from a
given match, and the number it was expected to secure, affects its stock
price, as does the number of goals that the club under question scores in
the match, relative to its competitor.
Journal: Applied Economics
Pages: 3435-3452
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577017
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577017
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3435-3452
Template-Type: ReDIF-Article 1.0
Author-Name: Sheng-Kai Chang
Author-X-Name-First: Sheng-Kai
Author-X-Name-Last: Chang
Title: State dependence, serial correlation and heterogeneity in the union membership dynamics
Abstract:
In order to distinguish the true and spurious state dependence from the
complicated dynamics of union membership, the simulation estimators
incorporating the lagged dependent variables, unobserved individual
heterogeneity and correlations among the errors are implemented in this
article to study union membership dynamics. It is found that the true
state dependence of union membership under multivariate t
assumption is much higher than the standard dynamic panel probit
estimators which are under multivariate normal assumptions. On the other
hand, the spurious state dependence (the variance of the unobserved
individual heterogeneity) is estimated to be higher when using the
standard dynamic panel probit estimators than under multivariate
t assumption. Moreover, blacks and married men are found
to have higher union membership true state dependence than whites and
unmarried men.
Journal: Applied Economics
Pages: 3453-3460
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577018
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577018
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3453-3460
Template-Type: ReDIF-Article 1.0
Author-Name: Tim Pawlowski
Author-X-Name-First: Tim
Author-X-Name-Last: Pawlowski
Author-Name: Christoph Breuer
Author-X-Name-First: Christoph
Author-X-Name-Last: Breuer
Title: Expenditure elasticities of the demand for leisure services
Abstract:
Although some research has already focused on the analysis of expenditure
elasticities of leisure demand, some shortcomings with regard to the
content and the underlying theoretical model as well as the applied
methods exist. This article aims at avoiding these problems to provide
consistent derivatives of leisure service expenditure elasticities.
Therefore, a regular demand system is derived from microeconomic duality
theory. To implement leisure specific demand factors (i.e. demand- and
supply-based sports and recreational opportunities as well as sports and
recreational preferences) while still being consistent with neoclassical
demand theory, the basic model is extended by applying the demographic
translation framework. Data of the continuous household budget survey
(n = 7724) from Germany is used for the
estimation of the derived demand system. It is shown how sensitive the
results are depending on the applied (censored) regression model: 16 out
of 18 analysed services are indicated as luxury goods based on the
findings of the Tobit model type I but as necessities based on the
findings of the Tobit model type II. Possible implications are presented
and discussed.
Journal: Applied Economics
Pages: 3461-3477
Issue: 26
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577021
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577021
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:26:p:3461-3477
Template-Type: ReDIF-Article 1.0
Author-Name: Jung-Suk Yu
Author-X-Name-First: Jung-Suk
Author-X-Name-Last: Yu
Author-Name: M. Kabir Hassan
Author-X-Name-First: M. Kabir
Author-X-Name-Last: Hassan
Author-Name: Benito Sanchez
Author-X-Name-First: Benito
Author-X-Name-Last: Sanchez
Title: A re-examination of financial development, stock markets development and economic growth
Abstract:
This study provides new evidence on the role of financial development and
stock market development in accounting for economic growth across
geographic regions and income groups. To derive feasible policy
implications, we estimate not only unbalanced panel regressions with
period fixed effects, but also variance decompositions of annual Gross
Domestic Product (GDP) growth rates to examine what proxy measures are
most important in economic growth over time and how much they contribute
to economic growth. We find distinct direction, timing and strength of the
causal links between financial development, stock market development and
economic growth based on the results of Granger causality tests.
Therefore, it may be necessary to make different efforts to achieve steady
economic growth across geographic regions and income groups.
Journal: Applied Economics
Pages: 3479-3489
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577019
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577019
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3479-3489
Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Ming Wu
Author-X-Name-First: Wei-Ming
Author-X-Name-Last: Wu
Title: Capacity utilization and its determinants for a container shipping line: theory and evidence
Abstract:
Under-utilization of fleet capacity appears to be a long-lasting issue in
the container shipping industry. Also, there are some difficulties
unsolved while measuring the ratio of Capacity Utilization (CU) of a
container shipping line. From the perspective of an engineering approach,
the slots capacity installed is the most popular way to represent the
capacity output. Since the slots capacity installed lacks theoretical
support, this study adopts an economics model to find the capacity output
of a shipping line. Further, the derived CU ratio identifies the realized
utilization of fleet capacity for a shipping line. Focused on the three
largest container shipping lines in Taiwan, this article shows that their
fleet capacity are totally under-utilized and the movement patterns of CU
ratios are approximately identical. In addition, the variations of CU
ratios also suggest that the enactment of Ocean Shipping Reform Act has
contributed a positive effect on the capacity utilization of a container
shipping line. Finally, by running a regression model to investigate the
determinants of CU ratios, the result indicates that demand condition and
global shipping alliance are two critical factors to improve the
utilization of fleet capacity for a container shipping line.
Journal: Applied Economics
Pages: 3491-3502
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577020
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577020
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3491-3502
Template-Type: ReDIF-Article 1.0
Author-Name: Sophie B鲥au
Author-X-Name-First: Sophie
Author-X-Name-Last: B鲥au
Author-Name: Antonia López Villavicencio
Author-X-Name-First: Antonia López
Author-X-Name-Last: Villavicencio
Author-Name: Val鲩e Mignon
Author-X-Name-First: Val鲩e
Author-X-Name-Last: Mignon
Title: Currency misalignments and growth: a new look using nonlinear panel data methods
Abstract:
The aim of this article is to investigate the link between currency
misalignments and economic growth. Relying on panel cointegration
techniques, we calculate Real Exchange Rate (RER) misalignments as
deviations of actual RERs from their equilibrium values for a set of
advanced and emerging economies. Estimating Panel Smooth Transition
Regression (PSTR) models, we show that RER misalignments have a
differentiated impact on economic growth depending on their sign: whereas
overvaluations negatively affect economic growth, RER undervaluations
significantly enhance it. This result indicates that undervaluations may
drive the exchange rate to a level that encourages exports and promotes
growth.
Journal: Applied Economics
Pages: 3503-3511
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577022
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577022
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3503-3511
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroki Iwata
Author-X-Name-First: Hiroki
Author-X-Name-Last: Iwata
Author-Name: Keisuke Okada
Author-X-Name-First: Keisuke
Author-X-Name-Last: Okada
Author-Name: Sovannroeun Samreth
Author-X-Name-First: Sovannroeun
Author-X-Name-Last: Samreth
Title: Empirical study on the determinants of CO2 emissions: evidence from OECD countries
Abstract:
This article empirically investigates the Environmental Kuznets Curve
(EKC) for CO2 emissions in the cases of 11 OECD countries by
taking into account the role of nuclear energy in electricity production.
The autoregressive distributed lag approach to cointegration is employed
as the estimation method. Our results indicate that energy consumption has
a positive impact on CO2 emissions in most countries in the
study. However, the impact of trade is not statistically significant. The
results provide evidence for the role of nuclear power in reducing
CO2 emissions only in some countries. Additionally, although
the estimated long-run coefficients of income and its square satisfy the
EKC hypothesis in Finland, Japan, Korea and Spain, only Finland's EKC
turning point is inside the sample period of the study, providing poor
evidence in support of the EKC hypothesis.
Journal: Applied Economics
Pages: 3513-3519
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577023
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577023
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3513-3519
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Sutter
Author-X-Name-First: Daniel
Author-X-Name-Last: Sutter
Title: Is the media liberal? An indirect test using news magazine circulation
Abstract:
Many critics allege that the US national news media is biased in favour
of liberal causes and Democratic candidates. The lack of an objective
measure of news content ensures that such charges remain controversial. I
consider an indirect test for media bias: if the national news media do
exhibit a liberal bias, consumption should be higher in liberal media
markets, ceteris paribus. I examine determinants of
circulation of the three major weekly news magazines across the US and
find that Newsweek and Time have higher
circulation in liberal markets while US News has higher
circulation in conservative markets. The evidence is consistent with a
liberal bias for Time and Newsweek,
while US News may be relatively conservative (but still
left of centre) or absolutely conservative.
Journal: Applied Economics
Pages: 3521-3532
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577024
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577024
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3521-3532
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios P. Louzis
Author-X-Name-First: Dimitrios P.
Author-X-Name-Last: Louzis
Author-Name: Spyros Xanthopoulos-Sisinis
Author-X-Name-First: Spyros
Author-X-Name-Last: Xanthopoulos-Sisinis
Author-Name: Apostolos P. Refenes
Author-X-Name-First: Apostolos P.
Author-X-Name-Last: Refenes
Title: Stock index realized volatility forecasting in the presence of heterogeneous leverage effects and long range dependence in the volatility of realized volatility
Abstract:
In this article, we account for the presence of heterogeneous leverage
effects and the persistence in the volatility of stock index realized
volatility. The Heterogeneous Autoregressive (HAR) Realized Volatility
(RV) model is extended in order to account for asymmetric responses to
negative and positive shocks occurring at distinct frequencies, as well
as, for the long range dependence in the heteroscedastic variance of the
residuals. Compared with established HAR and Autoregressive Fractionally
Integrated Moving Average (ARFIMA) realized volatility models, the
proposed model exhibits superior in sample fitting, as well as, out of
sample volatility forecasting performance. The latter is further improved
when the Realized Power Variation (RPV) is used as a regressor, while we
show that our analysis is also robust against microstructure noise.
Journal: Applied Economics
Pages: 3533-3550
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577025
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577025
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3533-3550
Template-Type: ReDIF-Article 1.0
Author-Name: Hyunchul Lee
Author-X-Name-First: Hyunchul
Author-X-Name-Last: Lee
Author-Name: Seokchin Kim
Author-X-Name-First: Seokchin
Author-X-Name-Last: Kim
Author-Name: Jinsu Kim
Author-X-Name-First: Jinsu
Author-X-Name-Last: Kim
Title: Open technology innovation activity and firm value: evidence from Korean firms
Abstract:
Despite the importance of Open Technology Innovation Activity (OTIA) for
firm value, the literature investigating effects of OTIA announcements of
developing country firms is not known in international academic circles.
Our study using an event study approach examines the effects of OTIA
(technology import and joint R&D) announcements of firms in Korea, one of
the leading developing and highly innovative countries. We find that the
announcements of OTIA produce positive average abnormal returns.
Interestingly, unlike the prior studies on developed country firms, OTIA
with firms in the homogenous industry leads to greater firm value than
that involving firms in heterogenic industries. This implies an importance
of a technological fusion with external firms in different industries for
value of developing country firms. In addition, this article finds no home
bias that a nationality of partner firms is not essential for the relation
between OTIA and value of firms.
Journal: Applied Economics
Pages: 3551-3561
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577026
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577026
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3551-3561
Template-Type: ReDIF-Article 1.0
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Author-Name: Dong Xiang
Author-X-Name-First: Dong
Author-X-Name-Last: Xiang
Title: Does bank efficiency matter? Market value relevance of bank efficiency in Australia
Abstract:
The stochastic frontier analysis is employed to investigate efficiency of
publicly listed Australian banks over the period 1985 to 2008. The results
suggest that technical, cost and profit efficiency of Australian banks
have improved over time. Large banks have attained a higher level of cost
efficiency but a lower level of technical efficiency compared to small
banks. No substantial difference between the two groups is found in terms
of profit efficiency. A panel regression of bank stock return on bank
efficiency suggests that an improvement in technical, cost or profit
efficiency contributes to the market value of a bank. Thus, the
shareholder wealth maximization goal is aligned with the goal of
maximizing bank efficiency in the Australian context.
Journal: Applied Economics
Pages: 3563-3572
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577027
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577027
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3563-3572
Template-Type: ReDIF-Article 1.0
Author-Name: David M. Zimmer
Author-X-Name-First: David M.
Author-X-Name-Last: Zimmer
Author-Name: H. Youn Kim
Author-X-Name-First: H.
Author-X-Name-Last: Youn Kim
Title: The dependence structure of income distribution
Abstract:
This article investigates the dependence structure of income distribution
in the US by providing two approaches -- one regression-based and the
other copula-based -- to reveal new information about income dependence.
The system of Seemingly Unrelated Regressions (SUR) is estimated for both
quintile income shares and mean income growth by controlling for
macroeconomic variables, and Kendall's tau statistics are derived for
income dependence. Results from less restrictive copula models corroborate
the regression-based results. However, income growth models do not support
the common claim that the rich are getting richer while the poor are
getting poorer. Income dependence patterns do not appear to be affected by
business cycles, but Democratic and Republican presidential
administrations have drastically different income dependence results.
Journal: Applied Economics
Pages: 3573-3583
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.577028
File-URL: http://hdl.handle.net/10.1080/00036846.2011.577028
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3573-3583
Template-Type: ReDIF-Article 1.0
Author-Name: F. Bouvet
Author-X-Name-First: F.
Author-X-Name-Last: Bouvet
Title: The Beveridge curve in Europe: new evidence using national and regional data
Abstract:
The Beveridge curve depicts the empirical negative relationship between
job vacancy rate and unemployment rate, and reflects the efficiency of the
job matching process. Movements along a fixed downward sloping Beveridge
curve are associated with cyclical shocks, while shifts of the curve arise
from structural factors that alter the matching efficiency between job
vacancies and unemployed workers. National and regional data on job
vacancies and unemployment are combined to estimate the Beveridge curves
of five European countries and their regions, focusing on the period 1975
to 2004. I also analyse whether shifts in European Beveridge curves are
due to changes in the composition of the unemployed pool, labour market
rigidities or cyclical and structural shocks. The empirical evidence
suggests that changes in labour market rigidities, long term unemployment,
as well as cyclical shocks are responsible for outward shifts in European
Beveridge curves. I also find evidence of nonlinearities in the relation
between unemployment and labour market institutions.
Journal: Applied Economics
Pages: 3585-3604
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.579062
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579062
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3585-3604
Template-Type: ReDIF-Article 1.0
Author-Name: Pat Obi
Author-X-Name-First: Pat
Author-X-Name-Last: Obi
Author-Name: Job Dubihlela
Author-X-Name-First: Job
Author-X-Name-Last: Dubihlela
Author-Name: Jeong-Gil Choi
Author-X-Name-First: Jeong-Gil
Author-X-Name-Last: Choi
Title: Equity market valuation, systematic risk and monetary policy
Abstract:
This study examines the relationship between equity market valuation and
risk indicators that portend economic downswings. The indicators are
implied options volatility, Treasury-Eurodollar (TED) spread and exchange
rate. While implied volatility captures market risk in that it reflects
the fear factor embedded in the price of an option, TED spread reflects
the default risk premium that is priced into a key short-term credit
instrument. Equity markets often show a tendency to reflect the incidence
of these risk factors. And because they provide valuable information about
the health of the economy, many have argued that equity market valuation
be taken into account in the formulation of monetary policy. Results of
this study not only show a statistically significant inverse relationship
between the stock market and these risk factors, but also evidence of a
cointegration. In a variance decomposition of the series, we find that
equity valuation is a major contributor to the forecast error variances of
each of the risk indicators, a finding that lends tacit support to the
argument that risk indicators associated with the equity market be
considered in monetary policy decisions.
Journal: Applied Economics
Pages: 3605-3613
Issue: 27
Volume: 44
Year: 2012
Month: 9
X-DOI: 10.1080/00036846.2011.579065
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579065
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Handle: RePEc:taf:applec:44:y:2012:i:27:p:3605-3613
Template-Type: ReDIF-Article 1.0
Author-Name: Per Engström
Author-X-Name-First: Per
Author-X-Name-Last: Engström
Author-Name: Per Johansson
Author-X-Name-First: Per
Author-X-Name-Last: Johansson
Title: The medical doctors as gatekeepers in the sickness insurance?
Abstract:
Based on a randomized experiment, we estimate effects from notification
to medical doctors of tighter monitoring of their Medical Certificates
(MCs). Both the time prescribed by the doctor certificates for sick leave
(prescribed sick leave) and the impact on the length of the actual
sickness absence (actual sick leave) is studied. We find no effect on the
total number of prescribed sick leave days. However, we do find an
increase in both prescribed and actual sick leave with a 25% work
inability. We also find that the notification letter causes an increase in
actual sick leave (i.e. the number of reimbursed sick days). We discuss a
number of potential explanations for this rather surprising result.
Journal: Applied Economics
Pages: 3615-3625
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.579064
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579064
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3615-3625
Template-Type: ReDIF-Article 1.0
Author-Name: Hong Liu
Author-X-Name-First: Hong
Author-X-Name-Last: Liu
Author-Name: Philip Molyneux
Author-X-Name-First: Philip
Author-X-Name-Last: Molyneux
Author-Name: Linh H. Nguyen
Author-X-Name-First: Linh H.
Author-X-Name-Last: Nguyen
Title: Competition and risk in South East Asian commercial banking
Abstract:
This article investigates the effects of competition on bank risk taking
behaviour in four South East Asian countries (Indonesia, Malaysia,
Philippines and Vietnam). Our main finding is that competition does not
increase bank risk-taking behaviour and the results appear robust to
different model specifications, estimation approaches and variable
construction. We also find that concentration is inversely related to bank
risk whereas regulatory restrictions positively influence bank
risk-taking.
Journal: Applied Economics
Pages: 3627-3644
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.579066
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579066
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3627-3644
Template-Type: ReDIF-Article 1.0
Author-Name: Alfonso Alba
Author-X-Name-First: Alfonso
Author-X-Name-Last: Alba
Author-Name: Jose Maria Arranz
Author-X-Name-First: Jose Maria
Author-X-Name-Last: Arranz
Author-Name: Fernando Muñoz-Bullón
Author-X-Name-First: Fernando
Author-X-Name-Last: Muñoz-Bullón
Title: Re-employment probabilities of unemployment benefit recipients
Abstract:
This article studies transitions out of unemployment for benefit
recipients in Spain. We analyse the duration of unemployment,
distinguishing between spells that end in recall (workers returning to the
previous employer) and spells that end in exit to a new job. This
distinction allows us to find that the recall hazard rate increases around
the time of exhaustion of benefits. However, this happens only for workers
receiving Unemployment Insurance (UI). Because we are unable to replicate
this result for workers receiving Unemployment Assistance (UA), we believe
the finding lends support to the hypothesis that in Spain firms and
workers make a strategic use of UI.
Journal: Applied Economics
Pages: 3645-3664
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.579067
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579067
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3645-3664
Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Gómez-Antonio
Author-X-Name-First: Miguel
Author-X-Name-Last: Gómez-Antonio
Author-Name: Bernard Fingleton
Author-X-Name-First: Bernard
Author-X-Name-Last: Fingleton
Title: Regional productivity variation and the impact of public capital stock: an analysis with spatial interaction, with reference to Spain
Abstract:
In this article, we examine whether variations in the level of public
capital across Spain's Provinces affected productivity levels over the
period 1996 to 2005. The analysis is motivated by contemporary urban
economics theory, involving a production function for the competitive
sector of the economy (‘industry’) which includes the level
of composite services derived from ‘service’ firms under
monopolistic competition. The outcome is potentially increasing returns to
scale resulting from pecuniary externalities deriving from internal
increasing returns in the monopolistic competition sector. We extend the
production function by also making (log) labour efficiency a function of
(log) total public capital stock and (log) human capital stock, leading to
a simple and empirically tractable reduced form linking productivity level
to density of employment, human capital and public capital stock. The
model is further extended to include technological externalities or
spillovers across provinces. Using panel data methodology, we find
significant elasticities for total capital stock and for human capital
stock, and a significant impact for employment density. The finding that
the effect of public capital is significantly different from zero,
indicating that it has a direct effect even after controlling for
employment density, is contrary to some of the earlier research findings
which leave the question of the impact of public capital unresolved.
Journal: Applied Economics
Pages: 3665-3677
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.579068
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579068
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3665-3677
Template-Type: ReDIF-Article 1.0
Author-Name: Kristof De Witte
Author-X-Name-First: Kristof
Author-X-Name-Last: De Witte
Author-Name: Chris Van Klaveren
Author-X-Name-First: Chris
Author-X-Name-Last: Van Klaveren
Title: Comparing students by a matching analysis -- on early school leaving in Dutch cities
Abstract:
In case of regional discretionary on the implementation of policy
measures, central governments often consider differences in outcomes as an
indication that one policy was more effective than another policy. If
uniform incentives are provided to motivate regional policy makers, these
incentives can be discouraging when the underlying populations differ.
Empirically, this study compares early school leaving between the four
largest Dutch cities. It shows that considering regional differences as
performance measures can be dangerous if differences in population
characteristics are not properly taken into account. Methodologically,
this study contrasts the use of a traditional probit model with a more
advanced iterative matching procedure.
Journal: Applied Economics
Pages: 3679-3690
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.579069
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579069
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3679-3690
Template-Type: ReDIF-Article 1.0
Author-Name: W. Allard Bruinshoofd
Author-X-Name-First: W. Allard
Author-X-Name-Last: Bruinshoofd
Author-Name: Leo de Haan
Author-X-Name-First: Leo
Author-X-Name-Last: de Haan
Title: Market timing and corporate capital structure: a transatlantic comparison
Abstract:
This article provides comparative international evidence on the effect of
market timing on corporate capital structures using panel data for US, UK
and continental European firms. We document that the empirical regularity
found for US firms, that historical market-to-book ratios and corporate
leverage correlate negatively does not extend to UK and continental
European firms. The latter tend to raise debt rather than equity when
stock prices are high, thus sticking more closely to a pecking order in
which debt is preferred over external equity.
Journal: Applied Economics
Pages: 3691-3703
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581211
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581211
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3691-3703
Template-Type: ReDIF-Article 1.0
Author-Name: Jos魍ar𨁍ontero-Lorenzo
Author-X-Name-First: Jos魍ar𨀍
Author-X-Name-Last: Montero-Lorenzo
Author-Name: Beatriz Larraz-Iribas
Author-X-Name-First: Beatriz
Author-X-Name-Last: Larraz-Iribas
Title: Space-time approach to commercial property prices valuation
Abstract:
There exists three ways of approaching real estate prices: the cost
approach, the market data approach and the income capitalization approach.
In this article, we propose an improvement of the market data approach
that takes into account the spatial component. In particular, we propose a
modified market data approach based on interpolation, being the structure
of the spatial correlation between the prices of properties the main
factor to obtain the weights. Interpolation methods have been widely used
for estimating real estate prices, but they do not take into account the
structure of their spatial dependence. Although this drawback is overcome
by kriged estimation, in the case of the prices of commercial properties,
they do not provide good estimates because the scarceness of the market
information. This is why auxiliary information is needed and cokriging
methods are used to obtain estimates that are more accurate. The aim of
this article is the comparison of cokriged estimation of premises prices
in two different temporal moments in the emblematic old part of Toledo
city (Spain), using housing prices as an auxiliary random function due to
their strong correlation with the main one. Cokriging, kriging and inverse
distance weighting results are compared.
Journal: Applied Economics
Pages: 3705-3715
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581212
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581212
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3705-3715
Template-Type: ReDIF-Article 1.0
Author-Name: Bettina Fincke
Author-X-Name-First: Bettina
Author-X-Name-Last: Fincke
Author-Name: Alfred Greiner
Author-X-Name-First: Alfred
Author-X-Name-Last: Greiner
Title: How to assess debt sustainability? Some theory and empirical evidence for selected euro area countries
Abstract:
In this article we elaborate on the test proposed by Bohn (1998) that
suggests to study whether the primary surplus relative to Gross Domestic
Product (GDP) is a positive function of the public debt to GDP ratio in
order to detect whether debt policies are sustainable. We argue that this
should be complemented by additional tests for countries with rising debt
to GDP ratios. We, then, apply that test to some countries of the euro
area. In addition, we perform stationarity tests with respect to the real
deficit inclusive of interest payments in order to gain additional
insight. We conclude that there is empirical evidence that the chosen
paths of fiscal policies are sustainable for the countries we consider,
although there are country specific differences in debt policies.
Journal: Applied Economics
Pages: 3717-3724
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581213
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581213
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3717-3724
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Malcolm
Author-X-Name-First: Michael
Author-X-Name-Last: Malcolm
Title: Can buy me love: the effect of child welfare expenditures on maltreatment outcomes
Abstract:
I consider the effect of state level child welfare expenditures on child
abuse victimization and fatality rates. The main result is that these
expenditures are strongly associated with improved child maltreatment
outcomes. Further, the well known negative association between income and
child abuse is overstated if one fails to control for relevant policy
differences that are correlated with economic circumstances. The effect of
income diminishes further upon controlling for social attitudes correlated
with income. The source of identification is a set of large and explicitly
exogenous changes in child welfare expenditures induced by the
circa 2000 recession. I show that endogeneity problems
are small and tend to work against the result.
Journal: Applied Economics
Pages: 3725-3736
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581214
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581214
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3725-3736
Template-Type: ReDIF-Article 1.0
Author-Name: Ismat Ara Begum
Author-X-Name-First: Ismat Ara
Author-X-Name-Last: Begum
Author-Name: Mohammad Jahangir Alam
Author-X-Name-First: Mohammad Jahangir
Author-X-Name-Last: Alam
Author-Name: Jeroen Buysse
Author-X-Name-First: Jeroen
Author-X-Name-Last: Buysse
Author-Name: Aymen Frija
Author-X-Name-First: Aymen
Author-X-Name-Last: Frija
Author-Name: Guido Van Huylenbroeck
Author-X-Name-First: Guido
Author-X-Name-Last: Van Huylenbroeck
Title: Contract farmer and poultry farm efficiency in Bangladesh: a data envelopment analysis
Abstract:
The objective of this article is to determine the efficiency of the
poultry farm in Bangladesh and to assess the influence of contract farming
system, using a data envelopment analysis. Seventy-five commercial poultry
farms (25 and 50 independent and contract farms, respectively) were
randomly selected. The results reveal that efficiency scores vary across
sample farms. To explain some of these variations, the efficiency scores
were regressed on some human capital variables and farming system using a
Tobit model. The study also estimates elasticities to provide the
information on the magnitude of the influence of variables on Technical
Efficiency (TE), Allocative Efficiency (AE) and Economic Efficiency (EE).
The results show that the contracting system is positively and
significantly related to the farm's TE, AE and EE. This is expected
because under contractual agreement, in order to obtain sufficient
supplies of the right quality of poultry meat at the right time, the
company provides technical know how assistance through company's recruited
supervisor, production inputs and services, and production credit along
with intensive supervision, which in turn improves farm efficiency. Thus,
by receiving technical know how contract farmers have gained more
knowledge on their resource and practices, which enables them to use
resources more efficiently. Empirical results can provide crucial
information to policy makers that improve poultry farm efficiency.
Journal: Applied Economics
Pages: 3737-3747
Issue: 28
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581216
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581216
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Handle: RePEc:taf:applec:44:y:2012:i:28:p:3737-3747
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Zschille
Author-X-Name-First: Michael
Author-X-Name-Last: Zschille
Author-Name: Matthias Walter
Author-X-Name-First: Matthias
Author-X-Name-Last: Walter
Title: The performance of German water utilities: a (semi)-parametric analysis
Abstract:
Germany's water supply industry is characterized by a multitude of
utilities and widely diverging prices, possibly resulting from structural
differences beyond the control of firms’ management, but also from
inefficiencies. In this article, we use Data Envelopment Analysis and
Stochastic Frontier Analysis to determine the utilities’ Technical
Efficiency (TE) scores based on cross-sectional data from 373 public and
private water utilities in 2006. We find large differences in TE scores
even after accounting for significant structural variables like network
density, share of groundwater usage and water losses.
Journal: Applied Economics
Pages: 3749-3764
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581215
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581215
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3749-3764
Template-Type: ReDIF-Article 1.0
Author-Name: Dongxu Wu
Author-X-Name-First: Dongxu
Author-X-Name-Last: Wu
Author-Name: Zhongmin Wu
Author-X-Name-First: Zhongmin
Author-X-Name-Last: Wu
Title: Crime, inequality and unemployment in England and Wales
Abstract:
A model of crime is developed based on principles from the existing
literature with some original insight. The implications of the model are
that income inequality and unemployment are important explanatory
variables for crimes motivated by economic gain, but do not offer much
explanatory power for other types of crime. Panel data of UK regions over
the years from 2002 to 2007 are then used to test these predictions. The
empirical results strongly support the hypothesis that crime is an
economic phenomenon.
Journal: Applied Economics
Pages: 3765-3775
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581217
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581217
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3765-3775
Template-Type: ReDIF-Article 1.0
Author-Name: H. Corrales-Herrero
Author-X-Name-First: H.
Author-X-Name-Last: Corrales-Herrero
Author-Name: B. Rodrz-Prado
Author-X-Name-First: B.
Author-X-Name-Last: Rodrz-Prado
Title: Characterizing Spanish labour pathways of young people with vocational lower-secondary education
Abstract:
School-to-work transition is no longer considered to take place at one
point but it is seen as a sequential process with multiple stages that
extend over a relatively long period in which individuals gradually settle
down into the labour market. This article constructs and examines the
labour pathways followed by Spanish young people who have completed
vocational lower secondary education. To do so, we use the Survey on
Educational-Training Transition and Labour Integration, a retrospective
longitudinal dataset that contains monthly calendar information about the
labour states in the 4 years after completing vocational education. A wide
range of states is covered: part-time employment, full-time employment,
unemployment and several situations of inactivity. To examine young labour
pathways we use sequence analysis, an exploratory technique which allows
us to obtain a measure of dissimilarity between sequences. Later, a
cluster analysis is applied that allow us to identify seven patterns of
transition into the labour market. Nevertheless, most trajectories may be
classified as linear, with a successful integration into the labour
market. A multinomial logit model confirms that demographic and
educational variables are relevant to explain the pathways followed by
young people.
Journal: Applied Economics
Pages: 3777-3792
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581218
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581218
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3777-3792
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Grad
Author-X-Name-First: Carlos
Author-X-Name-Last: Grad
Title: Poverty among minorities in the United States: explaining the racial poverty gap for Blacks and Latinos
Abstract:
The two largest minorities in the United States, African Americans and
people of Hispanic origin, show official poverty rates at least twice as
high as those of non-Hispanic Whites. These similarly high poverty rates
between the two minorities are, however, the result of different
combinations of factors related to the specific characteristics of these
two groups. In this article, we analyse the role of demographic and
labour-related variables in the current differential of poverty rates
among racial and ethnic groups in the United States and its recent
evolution. Our results show, first, that these differentials are largely
explained by differing family characteristics of the ethnic groups.
Furthermore, we show that while labour market activity of family members
and a preponderance of single mothers play a more significant role in the
higher poverty rates of Blacks, a larger number of dependent children is
closely associated with higher poverty among Latinos, who also suffer from
a larger educational attainment gap and higher immigration rates.
Journal: Applied Economics
Pages: 3793-3804
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581219
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581219
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3793-3804
Template-Type: ReDIF-Article 1.0
Author-Name: Maman Setiawan
Author-X-Name-First: Maman
Author-X-Name-Last: Setiawan
Author-Name: Grigorios Emvalomatis
Author-X-Name-First: Grigorios
Author-X-Name-Last: Emvalomatis
Author-Name: Alfons Oude Lansink
Author-X-Name-First: Alfons Oude
Author-X-Name-Last: Lansink
Title: Industrial concentration and price-cost margin of the Indonesian food and beverages sector
Abstract:
This article investigates trends in industrial concentration and its
relationship with the price-cost margin in 54 subsectors of the Indonesian
food and beverages sector in the period 1995 to 2006. This study uses
firm-level survey data provided by the Indonesian Bureau of Central
Statistics (BPS), classified at the five-digit International Standard
Industrial Classification (ISIC) Level. The results show a significant
increase in industrial concentration in 1995 to 1999, which coincided with
the period of the economic crisis in Indonesia. After 1999, the industrial
concentration exhibits a slightly decreasing long-term trend. Furthermore,
the industrial concentration for all subsectors tends to converge to the
same value in the long run. Additionally, results show that higher
industrial concentration yields a higher price-cost margin. Finally, the
introduction of the competition law in 1999 has slightly lowered
industrial concentration and the price-cost margin.
Journal: Applied Economics
Pages: 3805-3814
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581220
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581220
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3805-3814
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Title: Unconditional quantile regressions, wage growth and inequality in the Philippines, 2001--2006: the contribution of covariates
Abstract:
I implement a two-stage procedure to estimate the components of real wage
change in the Philippines along the wage distribution from 2001 to 2006,
as well as the contribution of individual covariates to each component.
The methodology is based on Re-centred Influence Functions (RIF), as
suggested by Firpo et al. (2009). The advantage of
this methodology is that it not only decomposes the unconditional wage
change at any quantile of the wage distribution, but also allows the
characterization of the contribution of any single covariate on each
component. I find that real earnings of males in the Philippines declined
and the decline along the earnings distribution is generally higher at
higher deciles for all males and higher at lower deciles in Manila.
Decomposition results are driven by the wage structure component, while
the composition effect is small and generally positive with education as
the main contributor. Within the wage structure effect, the main
determinants are associated with changes in the rewards of experience and
occupation, along with residual change (change in intercepts).
Journal: Applied Economics
Pages: 3815-3830
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581221
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581221
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3815-3830
Template-Type: ReDIF-Article 1.0
Author-Name: Hossein Kavand
Author-X-Name-First: Hossein
Author-X-Name-Last: Kavand
Author-Name: J. Stephen Ferris
Author-X-Name-First: J. Stephen
Author-X-Name-Last: Ferris
Title: The inflationary effects of stochastic resource revenues in resource-rich economies with less well-developed financial markets
Abstract:
This article develops a simple Dynamic Stochastic General Equilibrium
(DSGE) model to illustrate how economies that face restrictions in their
ability to alter both government spending and taxation in the short run
and cannot borrow easily (perhaps because of incomplete internal capital
markets) can find external fluctuations in resource revenues producing
unexpected variations in their internal money supply and ultimately in
their inflation rate. The main channels for these effects run through the
government budget and through the country's balance of payments position.
The model is calibrated to illustrate the case of Iran.
Journal: Applied Economics
Pages: 3831-3840
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581222
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581222
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3831-3840
Template-Type: ReDIF-Article 1.0
Author-Name: Mala Raghavan
Author-X-Name-First: Mala
Author-X-Name-Last: Raghavan
Author-Name: Paramsothy Silvapulle
Author-X-Name-First: Paramsothy
Author-X-Name-Last: Silvapulle
Author-Name: George Athanasopoulos
Author-X-Name-First: George
Author-X-Name-Last: Athanasopoulos
Title: Structural VAR models for Malaysian monetary policy analysis during the pre- and post-1997 Asian crisis periods
Abstract:
This article conducts an in-depth investigation into building a
Structural Vector Autoregression (SVAR) model and analysing the Malaysian
monetary policy. Considerable attention is paid to: (i) the selection of
foreign, policy and target variables; (ii) establish identifying
restrictions and improve the estimates of impulse response functions;
(iii) assess the importance of intermediate channels in transmitting
monetary policy mechanism; and (iv) the way in which the 1997 Asian
financial crisis affected the working of monetary policy. Malaysia is an
interesting small open economy to study because, following this crisis,
the government imposed capital and exchange rate control measures. The
overall results suggest that the crisis and the subsequent major shift in
the exchange rate regime have significantly affected the Malaysian
‘Black Box’. In the pre-crisis period, domestic variables
appear to be more vulnerable to foreign monetary shocks. Further, the
exchange rate played a significant role in transmitting the interest rate
shocks, whereas credit and asset prices helped to propagate the money
shock. In the post-crisis period however, asset prices play a more
domineering role in intensifying the effects of both interest rate and
money shocks on output, and the economy was insulated from foreign shocks.
Journal: Applied Economics
Pages: 3841-3856
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.581360
File-URL: http://hdl.handle.net/10.1080/00036846.2011.581360
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3841-3856
Template-Type: ReDIF-Article 1.0
Author-Name: M. J. Aziakpono
Author-X-Name-First: M. J.
Author-X-Name-Last: Aziakpono
Author-Name: S. Kleimeier
Author-X-Name-First: S.
Author-X-Name-Last: Kleimeier
Author-Name: H. Sander
Author-X-Name-First: H.
Author-X-Name-Last: Sander
Title: Banking market integration in the SADC countries: evidence from interest rate analyses
Abstract:
This study investigates the state, development and drivers of banking
market integration in the member countries of the Southern African
Development Community (SADC). A Principal Component Analysis (PCA) of
national retail interest rates indicates increasing integration in loan
and deposit markets. These integration processes are not developing
uniformly and we can identify a convergence club. When investigating the
interest rate pass-through from central bank onto retail rates for this
convergence club, we find both, genuine and monetary-integration driven
processes though the latter dominate. We thus conclude that a selective
expansion of the Common Monetary Area (CMA) is possible.
Journal: Applied Economics
Pages: 3857-3876
Issue: 29
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583219
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583219
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Handle: RePEc:taf:applec:44:y:2012:i:29:p:3857-3876
Template-Type: ReDIF-Article 1.0
Author-Name: Zein Kallas
Author-X-Name-First: Zein
Author-X-Name-Last: Kallas
Author-Name: Teresa Serra
Author-X-Name-First: Teresa
Author-X-Name-Last: Serra
Author-Name: Jos頠 M. Gil
Author-X-Name-First: Jos頠 M.
Author-X-Name-Last: Gil
Title: Effects of policy instruments on farm investments and production decisions in the Spanish COP sector
Abstract:
Our article assesses the impacts regarding on-farm investment and
production decisions resulting from the Partially Decoupled (PD) payment
scheme implemented during the 1990s and first half of the 2000s within the
framework of the Common Agricultural Policy (CAP). The Spanish Cereal,
Oilseed and Protein (COP) sector is taken as a case study regarding this
effect due to its economic and political relevance in Spain. The empirical
analysis is applied to farm-level data from 2000 to 2004 using the Farm
Accountancy Data Network (FADN). We use a reduced-form application of the
dual model of investment under uncertainty and estimate a system of
censored and uncensored equations. PD payments are found to increase
short-run production and generate a statically significant increase in the
investment in farm assets. Results also show the importance of assessing
the effects of PD payments in a dynamic framework as applied in this
article.
Journal: Applied Economics
Pages: 3877-3886
Issue: 30
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583220
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583220
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Handle: RePEc:taf:applec:44:y:2012:i:30:p:3877-3886
Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Testing nonlinearities in economic growth in the OECD countries: an evidence from SETAR and STAR models
Abstract:
This study estimates the Self Exciting Threshold Autoregressive (SETAR)
and Smooth Transition Autoregressive (STAR) models and examines the
nonlinear and regime switching dynamics of economic growth for a set of 10
OECD countries. The null of linearity in SETAR model is tested using the
recursive polynomial F test of Tsay and the bootstrap
based supremum, average and exponential average Lagrange Multiplier (LM)
tests of Hansen. The F test of Tsay rejects the null of
linearity for all the countries, except Spain and Switzerland. The SETAR
model of Hansen reinforces the evidence and suggests the rejection of
linear model. The STAR model rejects the null of linearity against STAR
nonlinearity for all the countries, except Denmark and Switzerland. The
sequential F tests for the conditional nulls suggest the
LSTAR nonlinearity for Australia, Belgium, France, Sweden and UK, and the
ESTAR nonlinearity for Canada, Spain and the USA.
Journal: Applied Economics
Pages: 3887-3908
Issue: 30
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583221
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583221
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Handle: RePEc:taf:applec:44:y:2012:i:30:p:3887-3908
Template-Type: ReDIF-Article 1.0
Author-Name: Ekaterini Panopoulou
Author-X-Name-First: Ekaterini
Author-X-Name-Last: Panopoulou
Author-Name: Theologos Pantelidis
Author-X-Name-First: Theologos
Author-X-Name-Last: Pantelidis
Title: Convergence in per capita health expenditures and health outcomes in the OECD countries
Abstract:
Our analysis of 19 Organization for Economic Co-operation and Development
(OECD) countries over the period 1972 to 2006 provides evidence of
convergence in per capita health care expenditures for 17 countries, while
the US and (to a lesser degree) Norway follow a different path. A simple
decomposition of per capita health expenditures reveals that the
divergence of the US comes from the divergence of the ‘ratio of
health care expenditures to Gross Domestic Product (GDP)’
component, while Norway's divergence is mainly caused by the
‘labour productivity’ component. Interestingly, our results
suggest that convergence in per capita health expenditures among the 17
OECD countries does not lead to convergence in health outcomes. Finally,
we extend our analysis to examine convergence in various determinants of
health expenditures.
Journal: Applied Economics
Pages: 3909-3920
Issue: 30
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583222
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583222
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Handle: RePEc:taf:applec:44:y:2012:i:30:p:3909-3920
Template-Type: ReDIF-Article 1.0
Author-Name: Steven T. Yen
Author-X-Name-First: Steven T.
Author-X-Name-Last: Yen
Title: Gender differences, physical activity and body weight
Abstract:
We investigate the effect of physical activity on bodyweight and the
gender differences in such effects, following the copula approach to
endogenous switching regression. Using data from the 2006 Behavioral Risk
Factor Surveillance System (BRFSS), we find differentiated effects of
socio-demographic variables on exercise and on Body Mass Indexes (BMIs),
and differentiated effects of exercise on BMI, between genders. Regular
exercise, on average, decreases BMI by 1.78 for women and 1.01 for men.
Food price away from home has negative effects on BMI of both men and
women.
Journal: Applied Economics
Pages: 3921-3934
Issue: 30
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583223
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583223
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Handle: RePEc:taf:applec:44:y:2012:i:30:p:3921-3934
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Gómez-Garc𨀍
Author-X-Name-First: Juan
Author-X-Name-Last: Gómez-Garc𨀍
Author-Name: Mar𨀠 del Rocio Moreno Enguix
Author-X-Name-First: Mar𨀠 del Rocio Moreno
Author-X-Name-Last: Enguix
Author-Name: Juan Cándido Gómez-Gallego
Author-X-Name-First: Juan Cándido
Author-X-Name-Last: Gómez-Gallego
Title: Estimation of the efficiency of structural funds: a parametric and nonparametric approach
Abstract:
This article seeks to perform an analysis of the efficiency of the
application of the structural funds in the regions classified as Objective
1 over the period 2000 to 2006, applying the techniques known as Data
Envelopment Analysis (DEA) and stochastic frontier. In the first place, we
are going to identify which are the most efficient regions. Finally, we
will analyse the extent to which certain factors have repercussions on the
efficiency such as country, geographical location and contribution of
agriculture of Gross Domestic Product (GDP) and the result indicates that
some of these variables have significantly influences of technical
efficiency.
Journal: Applied Economics
Pages: 3935-3954
Issue: 30
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583224
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583224
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Handle: RePEc:taf:applec:44:y:2012:i:30:p:3935-3954
Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Sanso-Navarro
Author-X-Name-First: Marcos
Author-X-Name-Last: Sanso-Navarro
Title: Broken trend stationarity of hours worked
Abstract:
The estimated impact of a technology shock on hours worked using
Structural Vector Autoregressions (SVARs) depends to a great extent on
whether or not hours worked is considered to be integrated of first order.
It is shown in this article that the widely analysed time series of hours
worked per capita in the US business sector evolves around a broken linear
trend. When this fact is taken into account, the unit root null is
rejected by recently proposed tests. Therefore, it can be stated that
empirical specifications with hours in first differences are not
recommended. It seems more appropriate to control for the presence of this
shift in the deterministic component. We also draw this conclusion from a
bivariate model for both productivity growth and hours worked. Our results
suggest that technology improvements have a negative but nonsignificant
effect on hours only in the very short run. This impact later becomes
positive and statistically significant after five periods.
Journal: Applied Economics
Pages: 3955-3964
Issue: 30
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583225
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583225
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Handle: RePEc:taf:applec:44:y:2012:i:30:p:3955-3964
Template-Type: ReDIF-Article 1.0
Author-Name: Akhter Faroque
Author-X-Name-First: Akhter
Author-X-Name-Last: Faroque
Author-Name: William Veloce
Author-X-Name-First: William
Author-X-Name-Last: Veloce
Author-Name: Jean-Francois Lamarche
Author-X-Name-First: Jean-Francois
Author-X-Name-Last: Lamarche
Title: Have structural changes eliminated the out-of-sample ability of financial variables to forecast real activity after the mid-1980s? Evidence from the Canadian economy
Abstract:
This article evaluates how consistently reliable the information content
of individual financial variables is for Canada's future output growth. We
estimate the timing of structural changes in linear growth models and
check robustness to specification changes, multiple breaks, and business
cycle asymmetry. Our simulated out-of-sample forecast evaluation strategy,
using the Mean Square Error F-type (MSE-F) and the new encompassing
(ENC-NEW) tests, shows that the leading information content of most
financial variables for Canada's future Gross Domestic Product (GDP)
growth has deteriorated substantially after 1984:04, but the 1--3-year
term spread exhibits a consistently reliable predictive ability at the 1
and 2 quarter horizons and has significant forecasting ability at the 8
quarter horizon. Also, the real M1 money growth has regained its ability
to forecast output growth since 1991:01.
Journal: Applied Economics
Pages: 3965-3985
Issue: 30
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583226
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583226
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Handle: RePEc:taf:applec:44:y:2012:i:30:p:3965-3985
Template-Type: ReDIF-Article 1.0
Author-Name: Ramo Barrena
Author-X-Name-First: Ramo
Author-X-Name-Last: Barrena
Author-Name: Mercedes Sánchez
Author-X-Name-First: Mercedes
Author-X-Name-Last: Sánchez
Title: Abstraction and product categories as explanatory variables for food consumption
Abstract:
This study sets out to explore variation in the consumer choice structure
in relation to three types of products with different levels of search,
experience and credence attributes. The decision structures of rice, wine
and functional food (experience, search and credence products) consumers
were explored by means of laddering. The results suggest the presence of
an emotional component in foods that increases in complexity (becomes more
abstract) with the number of credence attributes. The findings recommend
adjusting the complexity of advertising campaigns and product positioning
to the type of product being promoted.
Journal: Applied Economics
Pages: 3987-4003
Issue: 30
Volume: 44
Year: 2012
Month: 10
X-DOI: 10.1080/00036846.2011.583227
File-URL: http://hdl.handle.net/10.1080/00036846.2011.583227
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Handle: RePEc:taf:applec:44:y:2012:i:30:p:3987-4003
Template-Type: ReDIF-Article 1.0
Author-Name: Tatiane Almeida de Menezes
Author-X-Name-First: Tatiane Almeida
Author-X-Name-Last: de Menezes
Author-Name: Marie-Gabrielle Piketty
Author-X-Name-First: Marie-Gabrielle
Author-X-Name-Last: Piketty
Title: Towards a better estimation of agricultural supply elasticity: the case of soya beans in Brazil
Abstract:
Brazil is a major exporter of several agricultural commodities and has
shown strong interest in agricultural trade negotiations. For several
commodities, trade liberalization is expected to be followed by farmgate
prices increase and to boost domestic production. However, in a country as
big as Brazil, possible supply responses to price increase will probably
strongly differ from one region to another. This article focuses on soya
beans for which Brazil became a top exporter. The panel data technique is
used to estimate the soy bean supply response at national and regional
level. Soya bean supply is shown to be very price elastic. Moreover, soya
bean supply own price elasticity is much higher in the Center-North
regions than in the South of the country. Substitution between livestock
and soya bean is also very significant in the Center-North region. World
agricultural trade models should take account for such regional
variability of soya bean supply elasticity. The results also allow us to
discuss the issue of soya bean expansion at the Amazon border.
Journal: Applied Economics
Pages: 4005-4018
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587773
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587773
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4005-4018
Template-Type: ReDIF-Article 1.0
Author-Name: Weiping Kostenko
Author-X-Name-First: Weiping
Author-X-Name-Last: Kostenko
Author-Name: Mark Harris
Author-X-Name-First: Mark
Author-X-Name-Last: Harris
Author-Name: Xueyan Zhao
Author-X-Name-First: Xueyan
Author-X-Name-Last: Zhao
Title: Occupational transition and country-of-origin effects in the early stage occupational assimilation of immigrants: some evidence from Australia
Abstract:
We examine the occupational attainment of recent immigrants at 2 years
post migration in order to study their early stage assimilation into the
labour market in Australia. Human capital endowments and country-of-origin
effects are examined for six occupational groups. We also study
transitions across occupations from source to host country. The empirical
approach utilizes the Ordered Generalized Extreme Value (OGEV) model which
embodies differing utility functions across occupational outcomes, as well
as accounting for any ordering in these outcomes. The results suggest that
the transferability of knowledge and skills is affected by cultural and
social backgrounds, and that non-Western immigrants are disproportionately
channelled into inferior jobs post migration. The investigation of the
country-of-origin effect on the skilled migrants’ occupational
transition process is especially apt in the context of skill shortages in
many host countries.
Journal: Applied Economics
Pages: 4019-4035
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587774
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587774
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4019-4035
Template-Type: ReDIF-Article 1.0
Author-Name: D Büttner
Author-X-Name-First: D
Author-X-Name-Last: Büttner
Author-Name: B. Hayo
Author-X-Name-First: B.
Author-X-Name-Last: Hayo
Title: EMU-related news and financial markets in the Czech Republic, Hungary and Poland
Abstract:
We analyse the impact of news on five financial markets in the Czech
Republic, Hungary and Poland using a newly constructed data set in a
Generalized Autoregressive Conditional Heteroscedastic (GARCH) framework.
Macroeconomic shocks (on Gross Domestic Product (GDP), inflation rate,
current account and trade balance) are constructed as deviations from
expected values. Economic and Monetary Union (EMU)-related political and
fiscal news is captured as news dummies. Macroeconomic shocks
significantly affect short-term interest rates and, to a lesser extent,
other financial variables. Political and fiscal news has an impact on
long-term bond yields and exchange rates. News displayed prominently in
our media sources has a greater impact on financial markets than other
news and, in addition, the sources of news themselves matter. We also
discover asymmetric effects of news within markets. Finally, using a
pooled GARCH model we find that macroeconomic shocks have the strongest
impact on financial markets in Hungary, while political news has the
largest influence in both Hungary and Poland.
Journal: Applied Economics
Pages: 4037-4053
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587775
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587775
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4037-4053
Template-Type: ReDIF-Article 1.0
Author-Name: Emil Stavrev
Author-X-Name-First: Emil
Author-X-Name-Last: Stavrev
Author-Name: Helge Berger
Author-X-Name-First: Helge
Author-X-Name-Last: Berger
Title: The information content of money in forecasting euro area inflation
Abstract:
This article contributes to the debate on the role of money in monetary
policy by analysing the information content of money in forecasting
euro-area inflation. We compare the predictive performance within and
among various classes of structural and empirical models in a consistent
framework using Bayesian and other estimation techniques. We find that
money contains relevant information for inflation in some model classes.
Money-based New Keynesian Dynamic Stochastic General Equilibrium (DSGE)
models and Vector Autoregressions (VARs) incorporating money perform
better than their cashless counterparts. But there are also indications
that the contribution of money has its limits. The marginal contribution
of money to forecasting accuracy is often small, money adds little to
dynamic factor models, and it worsens forecasting accuracy of partial
equilibrium models. Finally, nonmonetary models dominate monetary models
in an all-out horserace.
Journal: Applied Economics
Pages: 4055-4072
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587776
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587776
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4055-4072
Template-Type: ReDIF-Article 1.0
Author-Name: George A Vamvoukas
Author-X-Name-First: George A
Author-X-Name-Last: Vamvoukas
Title: Panel data modelling and the tax-spend controversy in the euro zone
Abstract:
This article attempts to differentiate between the debatable tax and
spend, spend and tax, fiscal synchronization and institutional separation
hypotheses in order to explore empirically the interplay between public
expenditures and public revenues in the Economic and Monetary Union (EMU)
member states. For this purpose, panel data models are derived to test the
validity of the four hypotheses in EMU countries. A notable characteristic
of this article is that the four hypotheses are tested by dividing EMU
countries into various subgroups and using disaggregated data for
government expenditures and revenues. Seeking for the robustness of the
empirical evidence, the panel data methods of Generalized Two-Stage Least
Squares (GTSLS) and Generalized Method of Moments (GMM) are accordingly
applied to identify the relationship between public outlays and taxation
receipts. GTSLS and GMM results strongly support the fiscal
synchronization hypothesis implying that budget decision-making is
significantly influenced by both government expenditures and revenues
components.
Journal: Applied Economics
Pages: 4073-4085
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587777
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587777
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4073-4085
Template-Type: ReDIF-Article 1.0
Author-Name: Les Coleman
Author-X-Name-First: Les
Author-X-Name-Last: Coleman
Title: Testing equity market efficiency around terrorist attacks
Abstract:
This article uses the nine major bombings since 1998 that have been
attributed to Al Qaida to examine market efficiency, including a test of
rumours that investors traded with advance knowledge of attacks. Analysis
of these related, but individually unexpected, events confirms markets are
semi-strong efficient: it now takes well under a trading day to fully
price in a completely unexpected attack. On balance, markets also proved
strongly efficient with no conclusive evidence of insider trading.
Journal: Applied Economics
Pages: 4087-4099
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587778
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587778
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4087-4099
Template-Type: ReDIF-Article 1.0
Author-Name: Marina Selini Katsaiti
Author-X-Name-First: Marina Selini
Author-X-Name-Last: Katsaiti
Title: Obesity and happiness
Abstract:
This article provides insight on the relationship between individual
obesity and happiness levels. Using the latest available panel data from
Germany German Socio-Economic Panel (GSOEP), UK British Household Panel
Survey (BHPS), and Australia Household, Income and Labour Dynamics in
Australia (HILDA), we examine whether there is statistical evidence on the
impact of overweight on subjective well-being. Instrumental Variable (IV)
analysis is utilized under the presence of endogeneity, stemming from
several explanatory variables. Results indicate that in all three
countries obesity has a negative effect on the subjective well-being of
individuals. The results also have important implications for the effect
of other socio-demographic, economic and individual characteristics on
well-being.
Journal: Applied Economics
Pages: 4101-4114
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587779
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587779
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4101-4114
Template-Type: ReDIF-Article 1.0
Author-Name: James Joseph Fogarty
Author-X-Name-First: James Joseph
Author-X-Name-Last: Fogarty
Title: Expert opinion and cuisine reputation in the market for restaurant meals
Abstract:
As food is an experience good, the market for restaurant meals is a
market where the cost of acquiring information regarding quality is
relatively high. In such markets consumers often turn to reputation
measures to guide purchase decisions. As Australia does not have a
longstanding cuisine style of its own, and given Australia has been open
to substantial immigration inflows since federation, it represents an
especially appropriate market to study regarding the impact of individual
restaurant reputation and collective cuisine reputation on meal prices.
The following study uses the hedonic price approach to investigate the
implicit price of individual reputation indicators, cuisine type
reputation indicators and other objective indicators in the market for
restaurant meals. The empirical findings presented suggest that both
individual restaurant reputation and cuisine type reputation are
important. Other important factors are shown to include the quality of the
restaurant wine list, the availability of private dining rooms, and
whether or not there is an outdoor dining option.
Journal: Applied Economics
Pages: 4115-4123
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587780
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587780
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4115-4123
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno De Borger
Author-X-Name-First: Bruno
Author-X-Name-Last: De Borger
Author-Name: Kristiaan Kerstens
Author-X-Name-First: Kristiaan
Author-X-Name-Last: Kerstens
Author-Name: Diego Prior
Author-X-Name-First: Diego
Author-X-Name-Last: Prior
Author-Name: Ignace Van de Woestyne
Author-X-Name-First: Ignace
Author-X-Name-Last: Van de Woestyne
Title: Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions
Abstract:
Starting from existing static decompositions of overall economic
efficiency on nonparametric production and cost frontiers, this article
proposes more comprehensive decompositions including several cost-based
notions of capacity utilization. Furthermore, in case prices are lacking,
we develop additional decompositions of overall technical efficiency
integrating a technical concept of capacity utilization. These new
efficiency decompositions provide a link between short and long run
economic analysis and, in empirical work, avoid conflating inefficiency
and differences in capacity utilization. An empirical analysis using a
monthly panel of Chilean hydro-electric power plants illustrates the
potential of these decomposition proposals.
Journal: Applied Economics
Pages: 4125-4141
Issue: 31
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587783
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587783
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Handle: RePEc:taf:applec:44:y:2012:i:31:p:4125-4141
Template-Type: ReDIF-Article 1.0
Author-Name: L. Wei
Author-X-Name-First: L.
Author-X-Name-Last: Wei
Author-Name: J. Xiao
Author-X-Name-First: J.
Author-X-Name-Last: Xiao
Title: Factors affecting the take-off of innovative technologies: evidence from digital cameras
Abstract:
While technological innovations are important for many industries,
take-off sales for innovative products can have long lead times due to a
variety of factors. This article identifies the main parameters affecting
digital camera take-off sales in the US between 2001 and 2004. The study
constructs an empirical model for film and digital camera shipments and
finds that digital cameras primarily served as a substitute for low-end
film compacts rather than high-end film Single-Lens Reflex (SLR) cameras.
Also, growth in household PC ownership and Windows XP market share were
the main contributing factors to the decline of film cameras, with PC
penetration rate as the most important factor for digital camera
diffusion.
Journal: Applied Economics
Pages: 4143-4152
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587781
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587781
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4143-4152
Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Pasqua
Author-X-Name-First: Silvia
Author-X-Name-Last: Pasqua
Author-Name: Anna Laura Mancini
Author-X-Name-First: Anna Laura
Author-X-Name-Last: Mancini
Title: Asymmetries and interdependencies in time use between Italian parents
Abstract:
In recent decades, changes in parents’ attitudes towards the
importance of spending time with children to optimize their future
behaviour and cognitive development have greatly affected patterns of time
allocation among both working and nonworking parents in all developed
countries. We compare the two waves of the Italian Time Use dataset (1988
and 2002) to analyse how family time allocation changed over time in a
country that was undergoing a marked increase in female employment rate
and a continuous decline in total fertility rate. We focus especially on
how parents’ time with their children depends on their employment
status and household characteristics. Using a simultaneous sequential
approach, we consider links among the different time uses of individuals
and correlations with spouses’ decisions. We find that
wives’ time at work time strongly influences the time spent by both
spouses with their children in 2002, but not in 1988. Fathers were much
more involved in childcare and rearing in 2002 than in 1988. In general,
as women's work time increased, substitutes for their childcare time were
found within the household (fathers or other co-resident adults).
Journal: Applied Economics
Pages: 4153-4171
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587782
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587782
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4153-4171
Template-Type: ReDIF-Article 1.0
Author-Name: Chor Foon Tang
Author-X-Name-First: Chor Foon
Author-X-Name-Last: Tang
Author-Name: Soo Y. Chua
Author-X-Name-First: Soo Y.
Author-X-Name-Last: Chua
Title: The savings-growth nexus for the Malaysian economy: a view through rolling sub-samples
Abstract:
The purpose of this study is to re-investigate the savings-growth nexus
for the Malaysian economy using bounds testing approach to cointegration
and Toda and Yamamoto (1995) and Dolado and Lütkepohl (1996) -- TYDL
Granger causality test. This study covered the sample period from 1971:Q1
to 2008:Q4. The cointegration results suggest that the variables are
moving together in the long run and the TYDL Granger causality results
indicate that the relationship between savings and economic growth is
bilateral. In addition, the rolling sub-samples TYDL Granger causality
test exhibited a relatively stable causal relationship running from
savings to economic growth in Malaysia particularly before the onset of
Asian Financial Crisis in 1997/1998.
Journal: Applied Economics
Pages: 4173-4185
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587784
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587784
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4173-4185
Template-Type: ReDIF-Article 1.0
Author-Name: Jesse Russell
Author-X-Name-First: Jesse
Author-X-Name-Last: Russell
Title: Herding and the shifting determinants of exchange rate regime choice
Abstract:
It is difficult to pin down the factors that determine states’
choice of exchange rate regime because those very factors present a moving
target. Many scholars have taken on the same question: what are the
determinants of exchange rate regime choice? But as a group they have been
unable to identify a stable answer. The reason for this is that the
factors that best predict exchange rate regime vary dramatically across
time. An explanation for this variation is offered: rational herding, or
information cascades, can explain why one factor becomes prominent for a
period of time then suddenly drops off and is replaced by a better
predictor.
Journal: Applied Economics
Pages: 4187-4197
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587785
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587785
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4187-4197
Template-Type: ReDIF-Article 1.0
Author-Name: Raú l Serrano
Author-X-Name-First: Raú l
Author-X-Name-Last: Serrano
Author-Name: Vicente Pinilla
Author-X-Name-First: Vicente
Author-X-Name-Last: Pinilla
Title: The long-run decline in the share of agricultural and food products in international trade: a gravity equation approach to its causes
Abstract:
The objective of this study is to determine the causes of the loss of
share of agricultural products and food in international trade. The
article compares, using a gravity model, the impact of various factors
upon bilateral trade in agricultural products, in manufactures and in
total trade, between 1963 and 2000 for a representative sample of 40
countries. The results clearly demonstrate how the low demand elasticity
for agricultural products and food, the high degree of protectionism to
which they were subjected and their meagre share in intra-industrial trade
are the principal causes of their relatively slow growth.
Journal: Applied Economics
Pages: 4199-4210
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587786
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587786
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4199-4210
Template-Type: ReDIF-Article 1.0
Author-Name: Jana Vyrastekova
Author-X-Name-First: Jana
Author-X-Name-Last: Vyrastekova
Author-Name: Sander Onderstal
Author-X-Name-First: Sander
Author-X-Name-Last: Onderstal
Author-Name: Pierre Koning
Author-X-Name-First: Pierre
Author-X-Name-Last: Koning
Title: Self-selection and the power of incentive schemes: an experimental study
Abstract:
We examine how self-selection of workers depends on the power of
incentive schemes and how it affects team performance if the power of the
incentive schemes is increased. In a laboratory experiment, we let
subjects choose between (low-powered) team incentives and (high-powered)
individual incentives. We observe that subjects exhibiting high trust or
reciprocity in the trust game are more likely to choose team incentives.
When exposed to individual incentives, subjects who chose team incentives
perform worse if both the unobservable interdependency between their
efforts and their incentive to cooperate under team incentives are high.
Journal: Applied Economics
Pages: 4211-4219
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587787
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587787
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4211-4219
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Ashley
Author-X-Name-First: Richard
Author-X-Name-Last: Ashley
Author-Name: Haichun Ye
Author-X-Name-First: Haichun
Author-X-Name-Last: Ye
Title: On the Granger causality between median inflation and price dispersion
Abstract:
The Granger-causal relationship between the size and dispersion of
fluctuations in sub-components of the US Consumer Price Index (CPI) is
examined using both in-sample and out-of-sample tests and data from
January 1968 to December 2008. Strong in-sample evidence is found for
feedback between median inflation and price dispersion; the evidence for
Granger-causation from median inflation to price dispersion remains strong
in out-of-sample testing, but is less strong for Granger-causation in the
opposite direction. The implications of these results for the variety of
price-level determination models in the literature are discussed.
Journal: Applied Economics
Pages: 4221-4238
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587788
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587788
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4221-4238
Template-Type: ReDIF-Article 1.0
Author-Name: A. Tomohara
Author-X-Name-First: A.
Author-X-Name-Last: Tomohara
Author-Name: H. J. Lee
Author-X-Name-First: H. J.
Author-X-Name-Last: Lee
Author-Name: S. Lee
Author-X-Name-First: S.
Author-X-Name-Last: Lee
Title: Did FIN 48 increase companies’ tax payments? Trade-off between disclosure and tax burdens
Abstract:
This article examines the effects of implementing FIN 48 on
companies’ tax burdens. While the literature examines how FIN 48
impacts companies’ financial reporting, its effect on tax payments
has not yet been explored. We find that FIN 48 likely increased larger
companies’ tax burdens. Prior to the adoption of FIN 48, larger
companies may have used their asymmetric information advantage over the
tax authorities to maintain relatively aggressive tax positions. To the
extent that such tax-saving strategies were possible only for larger
companies, FIN 48 appears to have reduced the appeal of these more
aggressive tax minimization strategies.
Journal: Applied Economics
Pages: 4239-4248
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587789
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587789
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4239-4248
Template-Type: ReDIF-Article 1.0
Author-Name: Hsu-Ling Chang
Author-X-Name-First: Hsu-Ling
Author-X-Name-Last: Chang
Author-Name: De-Chih Liu
Author-X-Name-First: De-Chih
Author-X-Name-Last: Liu
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Title: Purchasing power parity with flexible Fourier stationary test for Central and Eastern European countries
Abstract:
This study applies stationary test with a Fourier function proposed by
Enders and Lee (2004, 2009) to test the validity of long-run Purchasing
Power Parity (PPP) to assess the nonstationary properties of the Real
Exchange Rate (RER) for seven Central and Eastern European Countries
(CEECs). We find that our approximation has higher power to detect
U-shaped breaks and smooth breaks than linear method if the true data
generating process of exchange rate is in fact a stationary nonlinear
process. We examine the validity of PPP from the nonlinear point of view
and provide robust evidence clearly indicating that the PPP holds true for
all CEECs. Our findings point out their exchange rate adjustment is mean
reversion towards PPP equilibrium values in a nonlinear way.
Journal: Applied Economics
Pages: 4249-4256
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.587791
File-URL: http://hdl.handle.net/10.1080/00036846.2011.587791
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4249-4256
Template-Type: ReDIF-Article 1.0
Author-Name: Julien Chevallier
Author-X-Name-First: Julien
Author-X-Name-Last: Chevallier
Title: Time-varying correlations in oil, gas and CO2 prices: an application using BEKK, CCC and DCC-MGARCH models
Abstract:
Previous literature has identified oil and gas prices as being the main
drivers of CO2 prices in a univariate Generalized
Autoregressive Conditional Heteroscedasticity (GARCH) econometric
framework (Alberola et al., 2008; Oberndorfer,
2009). By contrast, we argue in this article that the interrelationships
between energy and emissions markets shall be modelled in a Vector
Autoregressive (VAR) and Multivariate GARCH (MGARCH) framework, so as to
reflect the dynamics of the correlations between the oil, gas and
CO2 variables overtime. Using the Baba--Engle--Kraft--Kroner
(BEKK), Constant Conditional Correlation (CCC) and Dynamic Conditional
Correlation MGARCH (DCC-MGARCH) models on daily data from April 2005 to
December 2008, we highlight significant own-volatility, cross-volatility
spillovers, and own persistent volatility effects for nearly all markets,
indicating the presence of strong Autoregressive Conditional
Heteroscedasticity (ARCH) and GARCH effects. Besides, we provide strong
empirical evidence of time-varying correlations in the range of
[−0.3; 0.3] between oil and gas, [−0.05; 0.05]
between oil and CO2, and [−0.2; 0.2] between gas
and CO2, that have not been considered by previous studies.
These findings are of interest for traders and utilities in the energy
sector, but also for a broader applied economics audience.
Journal: Applied Economics
Pages: 4257-4274
Issue: 32
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589809
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589809
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Handle: RePEc:taf:applec:44:y:2012:i:32:p:4257-4274
Template-Type: ReDIF-Article 1.0
Author-Name: A. Hackethal
Author-X-Name-First: A.
Author-X-Name-Last: Hackethal
Author-Name: M. Koetter
Author-X-Name-First: M.
Author-X-Name-Last: Koetter
Author-Name: O. Vins
Author-X-Name-First: O.
Author-X-Name-Last: Vins
Title: Do government owned banks trade market power for slack?
Abstract:
The ‘Quiet Life Hypothesis (QLH)’ posits that banks with
market power have less incentives to maximize revenues and minimize cost.
Especially government owned banks with a public mandate precluding profit
maximization might succumb to a quiet life. We use a unified approach that
simultaneously measures market power and efficiency to test the quiet life
hypothesis of German savings banks. We find that average local market
power declined between 1996 and 2006. Cost and profit efficiency remained
constant. Nonparametric correlations are consistent with a quiet life
regarding cost efficiency but not regarding profit efficiency. The quiet
life on the cost side is negatively correlated with bank size, quality of
loan portfolio and local per capita income. The last result indicates that
the quiet cost life is therefore potentially due to benevolent excess
consumption of local input factors by public savings banks.
Journal: Applied Economics
Pages: 4275-4290
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589808
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589808
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4275-4290
Template-Type: ReDIF-Article 1.0
Author-Name: Ryoko Morozumi
Author-X-Name-First: Ryoko
Author-X-Name-Last: Morozumi
Title: A test of a unitary model on labour supply using the information of household decision-making systems
Abstract:
This article tests whether a unitary model is consistent with household
behaviour using the data of two-earner couples. It focuses on the unitary
model assuming that all family members have the same utility function. The
analysis investigates the difference in a husband's and wife's labour
supply between the household that determines the wife to be the main
decision-maker and the household that selects a different decision-making
system under the control of individual and household characteristics. The
estimation employs a treatment effects model to consider the selectivity
bias caused by unmeasured characteristics. Results show that the household
with the wife as the main decision-maker increases the husband's working
hours by 15% and decreases the wife's working hours by 59%, compared to
the household that selects a different decision-making system. This
implies that the unitary model is rejected. Additionally, the husband's
wage rate, the husband's and wife's health status, and their gambling
addiction determine the household decision-making system such as the
variables that determine the reservation utility of not being married. The
effect of the decision-making system on the labour supply and that of the
determinant factors on the decision-making system are consistent with the
implications obtained from Nash bargaining models and collective models.
Journal: Applied Economics
Pages: 4291-4300
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589810
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589810
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4291-4300
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Eun Lee
Author-X-Name-First: Jong-Eun
Author-X-Name-Last: Lee
Title: Macroeconomic determinants of the world trade disputes
Abstract:
This article is whether and how the world macroeconomic environments
influence the world trade disputes. We use two-pronged approach. First, we
try to answer the question whether and how global macroeconomic
environments are attached to the count of the world trade disputes. Even
if the traditional literature captures it at the national-level, global
picture needs to be completed. The second question we address is that
given the set of trade dispute initiating countries, whether and how
differently high-, middle- and low-income countries respond to their
macroeconomic environments in their decision-makings of trade disputes
initiations. The universe in the second question is a selected set of the
filing countries only, not all countries on this planet. One can capture
the behaviours of the countries involved in the trade disputes under
certain macroeconomic circumstances. The period is from 1995 to 2008,
covering all records of trade disputes since the birth of the World Trade
Organization (WTO).
Journal: Applied Economics
Pages: 4301-4311
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589811
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589811
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4301-4311
Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Hartarska
Author-X-Name-First: Valentina
Author-X-Name-Last: Hartarska
Author-Name: Denis Nadolnyak
Author-X-Name-First: Denis
Author-X-Name-Last: Nadolnyak
Title: Board size and diversity as governance mechanisms in community development loan funds in the USA
Abstract:
Community Development Loan Funds (CDLFs) in the US help revitalize
low-income communities by providing financial services to underserved
populations. This article uses recently available data from several
surveys to explore the link between performance and board size and
diversity. Given the unique nature of CDLFs, specific hypotheses are
formulated based on insights from the literature on governance in banks
and nonprofit institutions. To capture the CDLFs multiple objectives, the
article adapts an empirical approach used to study governance in banks.
The results show that efficiency improves as the board size increases up
to 13 members. The results also suggest that gender diversity has a
positive impact, while racial diversity is associated with a negative but
negligibly small impact.
Journal: Applied Economics
Pages: 4313-4329
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589812
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589812
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4313-4329
Template-Type: ReDIF-Article 1.0
Author-Name: Denis Nadolnyak
Author-X-Name-First: Denis
Author-X-Name-Last: Nadolnyak
Author-Name: Valentina Hartarska
Author-X-Name-First: Valentina
Author-X-Name-Last: Hartarska
Title: Agricultural disaster payments in the southeastern US: do weather and climate variability matter?
Abstract:
Governments around the world are forced to react to disasters caused by
weather. The agricultural sector is particularly susceptible to weather
extremes and adverse climate conditions. In the US, agricultural disaster
payments account for a significant part of total agricultural subsidies.
The payments, and their distribution, are more important in the areas most
affected by disastrous weather events, usually coinciding with areas of
pronounced impact of the El Nino Southern Oscillation (ENSO). In this
article, the impact of weather and climate, as well as some economic
variables, on disaster payments is analysed using county level data from
four states in the southeastern United States. The results suggest that
weather and climate variables explain most of the crop disaster payments
at the county level while socioeconomic variables do not, suggesting that
advancements in weather and climate forecasts could be helpful in planning
for disaster compensation.
Journal: Applied Economics
Pages: 4331-4342
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589813
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589813
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4331-4342
Template-Type: ReDIF-Article 1.0
Author-Name: Eva Fransen
Author-X-Name-First: Eva
Author-X-Name-Last: Fransen
Author-Name: Janneke Plantenga
Author-X-Name-First: Janneke
Author-X-Name-Last: Plantenga
Author-Name: Jan Dirk Vlasblom
Author-X-Name-First: Jan Dirk
Author-X-Name-Last: Vlasblom
Title: Why do women still earn less than men? Decomposing the Dutch gender pay gap, 1996--2006
Abstract:
Despite major improvements in women's labour market attachment, women
still earn considerably less than men. International research shows that
the persistence of the gender pay gap may be due to the fact that although
the gap in characteristics between men and women is diminishing, changes
in the wage structure counteract this change. This article will study
whether this ‘swimming upstream’ phenomenon is also playing
a role in the rather slow convergence between male and female wages in the
Netherlands. Our results indicate that this is not the case; most of the
changes in the Dutch wage structure have been rather favourable to women.
The lacking convergence in wages has to be explained from the fact that
despite the favourable changes, the Dutch wage structure still contains a
considerable implicit gender bias.
Journal: Applied Economics
Pages: 4343-4354
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589818
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589818
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4343-4354
Template-Type: ReDIF-Article 1.0
Author-Name: Hui Shi
Author-X-Name-First: Hui
Author-X-Name-Last: Shi
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Economies of scale in the Australian tourism industry
Abstract:
The measurement of economies of scale in the tourism industry has not
been done to this point, as tourism is not a specific industry according
to international statistical standards. Among many industries related to
tourism, four sectors (accommodation, transport, retail trade and
recreational services) across six states and two territories from 1997 to
2007 are studied as they contribute nearly 70% of tourism output in
Australia. By comparing regression results from the Cobb--Douglas (C--D)
production function and the translog production function, we find that
there is evidence of increasing returns in transport, retail trade and
recreational services at the industry level. However, accommodation is
characterized by constant returns to scale at the industry level. As
accommodation is responsible for the biggest share of tourism output, this
suggests that overall the tourism sector is not characterized by
increasing returns. We also find that the degrees of returns to scale from
the C--D and translog production functions are different and that the
imposition of input share also influences the empirical results. Both of
these factors stress the importance of model specification to the
measurement of economies of scale.
Journal: Applied Economics
Pages: 4355-4367
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589819
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589819
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4355-4367
Template-Type: ReDIF-Article 1.0
Author-Name: Rolf Färe
Author-X-Name-First: Rolf
Author-X-Name-Last: Färe
Author-Name: Chenggang Wang
Author-X-Name-First: Chenggang
Author-X-Name-Last: Wang
Author-Name: Clark Seavert
Author-X-Name-First: Clark
Author-X-Name-Last: Seavert
Title: A model of site-specific nutrient management
Abstract:
A model is introduced to answer three questions pertaining to
site-specific nutrient management in production of orchard crops: which
input factors of crop production are limiting yield; what action should be
taken to remove the limiting factors; and what is the potential gain in
revenue from taking the action. Our model captures the essence of the law
of the minimum in that yield and revenue increase only if the limiting
nutrients are adjusted. An example of pear trees shows how to implement
the method.
Journal: Applied Economics
Pages: 4369-4380
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589820
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589820
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4369-4380
Template-Type: ReDIF-Article 1.0
Author-Name: Shu Chun Chang
Author-X-Name-First: Shu Chun
Author-X-Name-Last: Chang
Title: The effect of social capital on post-earthquake reconstruction (programmes) in Nantou County, Taiwan: an assessment
Abstract:
The study aims, through an examination of social capital on
post-earthquake reconstruction programmes, to assess the impact of
government's programmes on integrated community development and to draw
policy implications. To this end, the study explores the programmes
implemented by the government in the communities of Nantou County after
the earthquake. The findings show that of the three measurements,
‘infrastructure improvement’ satisfied most respondents in
the three survey areas, but in Lugu Township and in Nantou City, further
improvements are needed in ‘unemployment reduction’ and
‘respondents betterment’.
Journal: Applied Economics
Pages: 4381-4389
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589821
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589821
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4381-4389
Template-Type: ReDIF-Article 1.0
Author-Name: Chandranath Amarasekara
Author-X-Name-First: Chandranath
Author-X-Name-Last: Amarasekara
Author-Name: George J. Bratsiotis
Author-X-Name-First: George J.
Author-X-Name-Last: Bratsiotis
Title: Monetary policy and real wage cyclicality
Abstract:
This article points to the potential role of monetary policy in affecting
the degree of real wage cyclicality. We show that the degree and direction
of real wage cyclicality is determined by the interaction of (i) the
returns to scale in production, (ii) the nature of aggregate shocks and
(iii) monetary policy. Given that production technology is fairly constant
in the short run, we suggest that variations in the real wage -- output
covariance depend largely on the combination of the latter two.
Identifying well-documented monetary policy phases in six major
Organization for Economic Co-operation and Development (OECD) countries
and accounting for both aggregate demand and supply shocks, we provide
empirical evidence to support our main theoretical claim.
Journal: Applied Economics
Pages: 4391-4408
Issue: 33
Volume: 44
Year: 2012
Month: 11
X-DOI: 10.1080/00036846.2011.589823
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589823
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Handle: RePEc:taf:applec:44:y:2012:i:33:p:4391-4408
Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chun Chang
Author-X-Name-First: Shu-Chun
Author-X-Name-Last: Chang
Title: Evaluation of Taiwan's aboriginal development before Ching Dynasty
Abstract:
This study makes use of information on geography, climate,
immigration, history and anthropology to analyse interactions between
changes in terrain and migration developments in these two areas from 1624
to 1894. Bangang, on the Yunlin-Chiayi plain, was the biggest city in
Taiwan during the period 1624-1720. However, the terrain of this area has
changed greatly with the coastline moving toward the west about 20 meters
per year. Therefore, many cities and harbours in this area were gradually
replaced. As a result, much new land was created and many races immigrated
into the area. The first Han Chinese migration was led by Yen Shih-Chi and
Cheng Chih-Lung in 1624, and entered the coastal area of Yunlin-Chiayi for
exploitation. By 1650 it had grown to 25 000 people and that huge number
forced the Tsou tribe to begin moving toward Ali Mountain.
Journal: Applied Economics
Pages: 4409-4419
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.589822
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589822
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4409-4419
Template-Type: ReDIF-Article 1.0
Author-Name: N. Domeque Claver
Author-X-Name-First: N. Domeque
Author-X-Name-Last: Claver
Author-Name: C. Fillat Castej
Author-X-Name-First: C. Fillat
Author-X-Name-Last: Castej
Author-Name: F. Sanz Gracia
Author-X-Name-First: F. Sanz
Author-X-Name-Last: Gracia
Title: External economies as a mechanism of agglomeration in EU manufacturing
Abstract:
Productive externalities are significant determinants of
agglomeration, not deeply studied at the industry and international level.
We analyse the impact on productivity growth of technological
externalities, both inter- and intraindustry, national or international,
at the industry level for the EU countries and the period 1995-2002. The
results confirm the advisability of considering international
externalities when countries are taken as regions, whose omission
underestimates national spillovers. Together with national endowments and
a central geographical position, the growth of productivity is encouraged
by national and international specialization as a general result;
moreover, it is fuelled by stronger interindustry spillovers and
productive diversification, a result more evident for high technology
industries, while lower technology industries are more sensitive to the
omission of international externalities. Economic integration seems to be
relevant, because supranational regions with less friction for goods and
factor movements are more likely to take advantage of external economies
as a mechanism of productivity growth and agglomeration.
Journal: Applied Economics
Pages: 4421-4438
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.589824
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589824
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4421-4438
Template-Type: ReDIF-Article 1.0
Author-Name: Ant Afonso
Author-X-Name-First: Ant
Author-X-Name-Last: Afonso
Author-Name: Ricardo M. Sousa
Author-X-Name-First: Ricardo M.
Author-X-Name-Last: Sousa
Title: The macroeconomic effects of fiscal policy
Abstract:
We investigate the macroeconomic effects of fiscal policy
using a Bayesian Structural Vector Autoregression (B-SVAR) approach. We
identify fiscal policy shocks via a partial identification scheme, but
also: (i) include the feedback from government debt; (ii) look at the
impact on the composition of output; (iii) assess the effects on asset
markets; (iv) use quarterly data; and (v) analyse empirical evidence from
the US, the UK, Germany and Italy. The results show that government
spending shocks, in general, have a small effect on Gross Domestic Product
(GDP); lead to important 'crowding-out' effects; have a varied impact on
housing prices and generate a quick fall in stock prices. Government
revenue shocks generate a mixed effect on housing prices and a small and
positive effect on stock prices. The empirical evidence also suggests that
it is important to explicitly consider the government debt dynamics in the
model.
Journal: Applied Economics
Pages: 4439-4454
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591732
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591732
File-Format: text/html
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4439-4454
Template-Type: ReDIF-Article 1.0
Author-Name: Hendrik Schmitz
Author-X-Name-First: Hendrik
Author-X-Name-Last: Schmitz
Title: More health care utilization with more insurance coverage? Evidence from a latent class model with German data
Abstract:
We analyse the impact of optional deductibles, private
supplementary health insurance and income on the demand for health care
utilization, measured as the number of physician visits with data from the
German Socio-Economic Panel (SOEP). With a set of newly available
variables for the years 2002, 2004 and 2006 that measure individual health
more accurately and including risk-attitudes towards health we find that
possible endogeneity of the insurance choice is not a problem. A latent
class approach that takes into account the panel structure of the data
reveals that especially individuals who have few doctor visits, the low
users, respond strongest to insurance status and income. In this group we
find that more insurance increases the demand for physician visits and
there is a pro-rich inequity in health care utilization. No such effects
are found for the high users.
Journal: Applied Economics
Pages: 4455-4468
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591733
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591733
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4455-4468
Template-Type: ReDIF-Article 1.0
Author-Name: K. Hohmeyer
Author-X-Name-First: K.
Author-X-Name-Last: Hohmeyer
Title: Effectiveness of One-Euro-Jobs: do programme characteristics matter?
Abstract:
Recent German labour market reforms introduced a large scale
workfare programme called One-Euro-Jobs to activate welfare recipients and
improve their employment prospects. In programme design leeway is left to
regional actors. Using administrative data and Propensity Score (PS)
matching, this article investigates the association between programme
design and effectiveness, so as to provide insight on how to increase
programme effectiveness. First, effects of different types of
One-Euro-Jobs according to planned duration and weekly working hours
compared to 'waiting' are estimated. Second, programme types are compared
directly to disentangle selection and programme effects. As expected
lock-in effects are larger for participations with a longer planned
duration, but not for those with longer weekly working hours.
One-Euro-Jobs do not generally increase the employment prospects for East
German men beyond 2 years after programme start and longer and more
intensive participations even decrease employment prospects. In West
Germany, One-Euro-Jobs generally increase the employment chances and
longer participations lead to slightly greater employment opportunities
roughly 2 years after programme start. The initial advantages of short
participations decrease over time. Following these results, a reallocation
of participants might improve programme effectiveness.
Journal: Applied Economics
Pages: 4469-4484
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591734
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591734
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4469-4484
Template-Type: ReDIF-Article 1.0
Author-Name: J. van Lottum
Author-X-Name-First: J.
Author-X-Name-Last: van Lottum
Author-Name: D. Marks
Author-X-Name-First: D.
Author-X-Name-Last: Marks
Title: The determinants of internal migration in a developing country: quantitative evidence for Indonesia, 1930-2000
Abstract:
This study specifies and estimates a gravity model for
interprovincial migration in Indonesia. Analysing five cross-sections for
Indonesia's 26 provinces for five survey years between 1930 and 2000 we
show that throughout the twentieth century economic factors were more
important in the explanation of interprovincial migration patterns in
Indonesia than planned migration policy aimed at the redistribution of the
population. In addition, our regression analysis demonstrates that the
urban primacy of Jakarta, Indonesia's capital, had a strong effect on the
direction and size of migration flows. Our findings thus suggest that the
costly government-supported migration is not very successful and that a
strongly centralized government induces migration flows to the capital.
These findings have policy implications for other developing countries.
Journal: Applied Economics
Pages: 4485-4494
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591735
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591735
File-Format: text/html
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4485-4494
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Zhongfei Chen
Author-X-Name-First: Zhongfei
Author-X-Name-Last: Chen
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Title: Housing sales in urban Beijing
Abstract:
In the housing market, new properties sometimes experience
delays before they are sold. Such delays reflect the preferences of buyers
in respect of the homes' characteristics. Therefore, it is important for
managerial purposes to identify the causes of housing sales delays. After
analysing the delays in sales of housing in Beijing City, China, the
principal finding of this study is that delays are largely explained by
the dwellings' characteristics and location. Policy implications of the
research findings, particularly those related to means of reducing the
delays, are discussed.
Journal: Applied Economics
Pages: 4495-4504
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591736
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591736
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4495-4504
Template-Type: ReDIF-Article 1.0
Author-Name: A. Zhang
Author-X-Name-First: A.
Author-X-Name-Last: Zhang
Author-Name: G. Q. Huang
Author-X-Name-First: G. Q.
Author-X-Name-Last: Huang
Author-Name: X. Liu
Author-X-Name-First: X.
Author-X-Name-Last: Liu
Title: Impacts of business environment changes on global manufacturing in the Chinese Greater Pearl River Delta: a supply chain perspective
Abstract:
Business operating conditions have changed substantially in
the Chinese Greater Pearl River Delta (GPRD) due to the Chinese currency
appreciation, rising labour costs, highly volatile oil prices and new
processing trade policies. Such changes have triggered manufacturers to
rethink their global operations. This article studies potential global
manufacturing trends from a supply chain perspective. A mixed integer
programming model suggests that these changes have negatively affected the
region's competitive advantages as its labour-intensive production mainly
targets at the mass market and competes on low costs. Three production
relocation trends are affirmed, i.e. the relocation to lower-cost areas
within China, lower-cost Asian countries and areas near end markets.
However, it is also discovered that the GPRD region still attracts
businesses with its formation of industrial clusters, the enhanced
comparative advantage against competing regions in inland China or Asian
lower-cost countries under high oil prices, and Hong Kong's being a robust
location choice to host trade operations.
Journal: Applied Economics
Pages: 4505-4514
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591737
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591737
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4505-4514
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements
Author-X-Name-First: Kenneth W.
Author-X-Name-Last: Clements
Author-Name: Izan H. Y. Izan
Author-X-Name-First: Izan H. Y.
Author-X-Name-Last: Izan
Title: The pay parity matrix - a tool for analysing the structure of pay
Abstract:
This article introduces a new tool for measuring relative pay
within organizations. We call this innovation the 'Pay Parity (PP)
matrix', and discuss its advantages and useful properties. The PP matrix
allows us to conveniently measure, and draw inferences about, the nature
of the whole remuneration schedule, such as its gradient and smoothness.
We illustrate the application of the PP matrix by using data on the
remuneration of academic executives in universities.
Journal: Applied Economics
Pages: 4515-4525
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591738
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591738
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4515-4525
Template-Type: ReDIF-Article 1.0
Author-Name: Rashmi Umesh Arora
Author-X-Name-First: Rashmi Umesh
Author-X-Name-Last: Arora
Title: Finance and inequality: a study of Indian states
Abstract:
Although a large literature exists on finance and economic
growth, few studies have empirically examined the relationship between
finance and inequality. Using grouped national household sample survey
data on monthly household consumption expenditure at the sub-national
level for the years 1999-2000 to 2006-2007, we examine the relationship
between Financial Development (FD) and rural and urban inequality in
India. The results indicate that FD is associated with a reduction in
inequality, but only in the urban areas. Further, inequality is found to
be higher in the richer states compared to less developed and low income
states, and as state income increases, inequality also increases both in
the rural and urban areas. Finally, our results show that increase in
population per bank branch leads to higher inequality in urban areas but
decline in rural areas.
Journal: Applied Economics
Pages: 4527-4538
Issue: 34
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.597736
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597736
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Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4527-4538
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Kvasnicka
Author-X-Name-First: Michael
Author-X-Name-Last: Kvasnicka
Author-Name: Harald Tauchmann
Author-X-Name-First: Harald
Author-X-Name-Last: Tauchmann
Title: Much ado about nothing? Smoking bans and Germany's hospitality industry
Abstract:
Over the past years, public smoking bans have been introduced in most
European countries. Unlike elsewhere, in Germany such bans were introduced
at state level at different points in time, which provides important
intra-country regional variation that can be exploited to identify the
effects of such bans on the hospitality industry. Using monthly data from
a compulsory survey carried out by the German Federal Statistical Office,
we study the short-run effects that these bans had on
establishments’ sales. In contrast to the largely US-based
literature, we find that smoke-free policies had a negative (yet moderate)
effect on establishment sales. Closure rates of businesses in the
hospitality industry, however, were not significantly affected by the
introduction of state smoking bans.
Journal: Applied Economics
Pages: 4539-4551
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591739
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591739
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4539-4551
Template-Type: ReDIF-Article 1.0
Author-Name: David Masclet
Author-X-Name-First: David
Author-X-Name-Last: Masclet
Author-Name: Thierry P鮡rd
Author-X-Name-First: Thierry
Author-X-Name-Last: P鮡rd
Title: Do reputation feedback systems really improve trust among anonymous traders? An experimental study
Abstract:
Feedback systems are claimed to be a crucial component of the success of
electronic marketplaces like eBay or Amazon Marketplace. This article aims
to compare the effects of various feedback systems on trust between
anonymous traders, through a set of experiments based on the trust game.
Our results indicate that trust is significantly improved by the
introduction of a reputation feedback system. However, such mechanisms are
far from being perfect and are vulnerable to strategic ratings and
reciprocation. Our findings indicate that some changes in rating rules may
significantly improve the efficiency of feedback systems, by avoiding
strategic rating or reciprocation, and hence stimulate trust and
trustworthiness among traders. In particular, a system in which
individuals are not informed of their partner's rating decision before
making their own decision provides better results, both in terms of trust
and earnings.
Journal: Applied Economics
Pages: 4553-4573
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591740
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591740
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4553-4573
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Gómez-Loscos
Author-X-Name-First: Ana
Author-X-Name-Last: Gómez-Loscos
Author-Name: Mar𨀠 Dolores Gadea
Author-X-Name-First: Mar𨀠 Dolores
Author-X-Name-Last: Gadea
Author-Name: Antonio Montañ鳠
Author-X-Name-First: Antonio
Author-X-Name-Last: Montañ鳠
Title: Economic growth, inflation and oil shocks: are the 1970s coming back?
Abstract:
This article analyses the relationship between oil price shocks and the
macroeconomic evolution of the Group of Seven (G7) countries. Using the Qu
and Perron (2007) methodology, we endogenously identify three breaks in
the nonlinear relationship across our 1970 to 2008 sample. We compute
long-term multipliers and find that the response of output and inflation
to oil price shocks is greatest in the 1970s and progressively disappears
until the late 1990s. In contrast to the previous literature, we observe
that both effects reappear in the 2000s, especially on inflation.
Nevertheless, the transmission of oil price shocks to the economy is
weaker than in the 1970s, which means that oil price shocks have lost some
of their explanatory power. Precisely identifying these effects is crucial
for the design of adequate economic measures to control or smoothen them.
Journal: Applied Economics
Pages: 4575-4589
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.591741
File-URL: http://hdl.handle.net/10.1080/00036846.2011.591741
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4575-4589
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Xu
Author-X-Name-First: Xiao
Author-X-Name-Last: Xu
Author-Name: Gail A. Jensen
Author-X-Name-First: Gail A.
Author-X-Name-Last: Jensen
Title: Does health insurance reduce illness-related worker absenteeism?
Abstract:
The objective of this article is to examine whether having health
insurance reduces illness-related absenteeism among older workers. A
nationally representative sample of 1780 workers in the United States,
aged 52--64, are drawn from the 2004--2006 Health and Retirement Study
(HRS). Binary logistic regressions and censored Tobit models are estimated
for workers’ likelihood of missing work days due to illness and the
number of illness-related work days missed, respectively, while explicitly
addressing the possibility of insurance-selection effects. The findings
suggest that over a 12-month period, older workers without health
insurance are as likely as insured workers to miss work days due to
illness and there are no differences in the number of days missed between
insured and uninsured workers. However, there is strong evidence that poor
baseline health, onset of new diseases and longer hospitalization
significantly increase an older worker's absenteeism at work. These
results suggest that having health insurance does not affect
illness-related absenteeism among older workers in the US. Future research
examining other aspects of worker productivity, such as
‘presenteeism’, and the longer term effects of insurance on
productivity can extend our understanding of the role of health insurance
in the workplace.
Journal: Applied Economics
Pages: 4591-4603
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.593498
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593498
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4591-4603
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Cristina Zhunio
Author-X-Name-First: Maria Cristina
Author-X-Name-Last: Zhunio
Author-Name: Sharmila Vishwasrao
Author-X-Name-First: Sharmila
Author-X-Name-Last: Vishwasrao
Author-Name: Eric P. Chiang
Author-X-Name-First: Eric P.
Author-X-Name-Last: Chiang
Title: The influence of remittances on education and health outcomes: a cross country study
Abstract:
We study the effect of international remittances on aggregate educational
and health outcomes using a sample of 69 low- and middle-income countries.
We find that remittances play an important role in improving primary and
secondary school attainment, increasing life expectancy and reducing
infant mortality. Our results suggest that as migration laws continue to
support greater emigration and remittances, policies should be enacted to
facilitate the flow of remittances as they represent a significant source
for economic development.
Journal: Applied Economics
Pages: 4605-4616
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.593499
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593499
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4605-4616
Template-Type: ReDIF-Article 1.0
Author-Name: Jun Nagayasu
Author-X-Name-First: Jun
Author-X-Name-Last: Nagayasu
Title: Financial innovation and regional money
Abstract:
This article studies the effect that financial innovation, which has been
very common in recent years, has on money. Using Japanese regional data
and the money demand specification, we first provide evidence of
instability in the simple money-output relationship. However, when this
relationship is extended to include a proxy for a comprehensive measure of
financial innovation, the model is found to be stable. Furthermore,
consistent with economic theory, evidence is obtained of financial
innovation leading to decreased demand for liquid financial assets. In
this respect, in Japan demand deposits seem to possess very similar
characteristics to cash over recent years.
Journal: Applied Economics
Pages: 4617-4629
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.593500
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593500
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4617-4629
Template-Type: ReDIF-Article 1.0
Author-Name: Emma M. Iglesias
Author-X-Name-First: Emma M.
Author-X-Name-Last: Iglesias
Title: An analysis of extreme movements of exchange rates of the main currencies traded in the Foreign Exchange market
Abstract:
This article analyses the extreme movements of exchange rates of the
seven main currencies traded in the Foreign Exchange market against the US
dollar: Euro, British pound, Canadian dollar, Japanese Yen, Swiss franc,
Australian dollar and New Zealand dollar by using tail index indicators.
Payaslioğlu (2009) considers the case of the Turkish exchange rate
using the traditional Hill (1975) estimator as a tool. In this article, we
employ also an alternative estimator proposed in Iglesias and Linton
(2009) that is shown to have, in some cases, improved finite sample
properties and it provides substantially different results versus the Hill
estimator. We find that for the Euro, Japanese Yen, Swiss franc, Canadian,
Australian and New Zealand dollars, the Hill estimator provides a better
measure to analyse the extreme behaviour; while for the British pound, the
Iglesias and Linton alternative estimator is superior by using
Hausman-type tests of misspecification. Measures of value at risk are also
provided for the seven markets. We also find that the largest estimated
value at risk by far is for the Japanese Yen, followed by the Swiss franc,
the Canadian dollar, the Euro, the New Zealand dollar and the Australian
dollar. The UK pound has the smallest value at risk when extreme movements
occur.
Journal: Applied Economics
Pages: 4631-4637
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.593501
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593501
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4631-4637
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Brown
Author-X-Name-First: Sarah
Author-X-Name-Last: Brown
Author-Name: Andrew Dickerson
Author-X-Name-First: Andrew
Author-X-Name-Last: Dickerson
Author-Name: Jolian McHardy
Author-X-Name-First: Jolian
Author-X-Name-Last: McHardy
Author-Name: Karl Taylor
Author-X-Name-First: Karl
Author-X-Name-Last: Taylor
Title: Gambling and credit: an individual and household level analysis for the UK
Abstract:
We explore the relationship between gambling and the use of credit at the
individual and household levels using representative pooled cross-section
data from the UK Expenditure and Food Surveys (EFS) (2001--2007). Gambling
and the use of credit are shown to be positively correlated at the
household level. We find that both the incidence and amount of gambling
vary according to household income and the positive association between
gambling and credit is stable across household income. It is also apparent
that there is strong intra-household correlation in both gambling activity
and the use of credit, with stronger relationships in lower income
households.
Journal: Applied Economics
Pages: 4639-4650
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.593502
File-URL: http://hdl.handle.net/10.1080/00036846.2011.593502
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4639-4650
Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Chi Chen
Author-X-Name-First: Yi-Chi
Author-X-Name-Last: Chen
Author-Name: Chang-Ching Lin
Author-X-Name-First: Chang-Ching
Author-X-Name-Last: Lin
Title: Information shocks and cigarette addiction: views from dynamic panels with common structural changes
Abstract:
In this article we attempt to evaluate the impact of various information
shocks on cigarette consumption. In contrast to the existing studies, we
do not impose any break points a priori. We use recently
developed techniques for sample splitting in the data on US cigarette
demand, and find that using a time index as a transition variable can
cluster cigarette demand into four distinct regimes. In the past four
decades a myopic-to-rational switch in cigarette consumption behaviour was
observed in response to various anti-smoking information events. In
particular, we find strong evidence in support of the rational addiction
model in the 1980s and 1990s. Moreover, in line with the theoretical
prediction, our estimate of the long-run elasticity is twice as large as
the short-run elasticity. Our empirical framework should improve policy
makers' understanding of the dynamics of cigarette consumption in response
to various anti-smoking campaigns, and stress the role of sound policy
making in improving smoking control measures.
Journal: Applied Economics
Pages: 4651-4660
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.597733
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597733
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4651-4660
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Conte
Author-X-Name-First: Anna
Author-X-Name-Last: Conte
Author-Name: Peter G. Moffatt
Author-X-Name-First: Peter G.
Author-X-Name-Last: Moffatt
Author-Name: Fabrizio Botti
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Botti
Author-Name: Daniela T. Di Cagno
Author-X-Name-First: Daniela T.
Author-X-Name-Last: Di Cagno
Author-Name: Carlo D’Ippoliti
Author-X-Name-First: Carlo
Author-X-Name-Last: D’Ippoliti
Title: A test of the rational expectations hypothesis using data from a natural experiment
Abstract:
Data on contestants’ choices in Italian Game Show Affari
Tuoi are analysed in a way that separates the effect of risk
attitude (preferences) from that of beliefs concerning the amount of money
that will be offered to contestants in future rounds. This separate
identification is possible by virtue of the fact that, at a certain stage
of the game, beliefs are not relevant, and risk attitude is the sole
determinant of choice. The rational expectations hypothesis is tested by
comparing the estimated belief function with the ‘true’
offer function which is estimated extraneously using data on offers
actually made to contestants. We find a close correspondence, leading us
to accept the rational expectations hypothesis. The importance of belief
formation is confirmed by the estimation of a mixture model which
establishes that the vast majority of contestants are forward looking as
opposed to myopic.
Journal: Applied Economics
Pages: 4661-4678
Issue: 35
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.597734
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597734
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:35:p:4661-4678
Template-Type: ReDIF-Article 1.0
Author-Name: D. Maltritz
Author-X-Name-First: D.
Author-X-Name-Last: Maltritz
Author-Name: A. Bühn
Author-X-Name-First: A.
Author-X-Name-Last: Bühn
Author-Name: S. Eichler
Author-X-Name-First: S.
Author-X-Name-Last: Eichler
Title: Modelling country default risk as a latent variable: a multiple indicators multiple causes approach
Abstract:
We study the determinants of country default risk by applying a Multiple
Indicators Multiple Causes (MIMIC) model. This accounts for the fact that
country default risk is an unobservable variable. Whereas existing
(regression-based) approaches typically use only one of several possible
country default risk indicators as the dependent variable, the MIMIC model
enables us to consider several indicators at once. The simultaneous
consideration of sovereign yield spreads and Standard and Poor (S&P)
ratings may help to improve the identification of the latent country
default risk. Our results confirm most of the literature's main findings
regarding important determinants of country default risk, refute others
and provide new evidence to controversial questions.
Journal: Applied Economics
Pages: 4679-4688
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528369
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528369
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4679-4688
Template-Type: ReDIF-Article 1.0
Author-Name: Feng-Yuan Moh
Author-X-Name-First: Feng-Yuan
Author-X-Name-Last: Moh
Author-Name: Hsi-Peng Lu
Author-X-Name-First: Hsi-Peng
Author-X-Name-Last: Lu
Author-Name: Bing-Huei Lin
Author-X-Name-First: Bing-Huei
Author-X-Name-Last: Lin
Title: Contributions to financial crisis research: an assessment of the literature in Social Science Citation Index journals from 1990 to 2008
Abstract:
Research in the field of financial crisis has generated a considerable
amount of literature in the past, yet there has neither been any study to
assess the contributions to the literature made by individuals or
institutions, nor any to measure the impact of the articles and
researchers. This study represents an attempt to: (1) investigate the
major journals in publishing financial crisis research, (2) assess the
contributions of individual researchers and institutions using the
credited contribution approach and (3) measure the impact of individual
publications and individual researchers on the financial crisis literature
through citation analysis, based on the publications in Social Science
Citation Index (SSCI) journals from 1990 to 2008. The findings provide a
useful benchmark for assessing individual and institutional research
productivity, and trends for future research and venues for publications
are identified.
Journal: Applied Economics
Pages: 4689-4700
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528370
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528370
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4689-4700
Template-Type: ReDIF-Article 1.0
Author-Name: Gaurav Nayyar
Author-X-Name-First: Gaurav
Author-X-Name-Last: Nayyar
Title: The quality of employment in India's services sector: exploring the heterogeneity
Abstract:
For some observers, the dramatic growth of the services sector in India
reflects rapid strides made by educated professionals. Some others see it
as the expansion of an employer of last resort. Given this heterogeneity,
the object of this article is to analyse the quality of employment being
created in different sub-sectors of services, relative to the industrial
sector, where quality is defined to include wages, job security and social
protection. Analysing household survey data from India in 1993--94 and
2004--05, we find the following. First, sub-sectors of services are
generally either ‘good’ or ‘bad’ employers --
higher wages do not compensate for less job security or less job
protection. Second, the classification of most service sub-sectors as
‘good’ or ‘bad’ employers in 2004--05 is the
same as that in 1993--94. Third, employment expansion during the 10-year
period under consideration is more in service sub-sectors where quality of
employment is low.
Journal: Applied Economics
Pages: 4701-4719
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.589816
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589816
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4701-4719
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Pedace
Author-X-Name-First: Roberto
Author-X-Name-Last: Pedace
Author-Name: Christine DuBois
Author-X-Name-First: Christine
Author-X-Name-Last: DuBois
Title: Immigration policy and employment assimilation in the United States
Abstract:
We examine the impact of immigration policy on the employment propensity
and assimilation of immigrants using a pooled cross-section of the
1994--2004 Current Population Surveys (CPS). The results are generally
consistent with positive immigrant employment assimilation. A
Blinder--Oaxaca style decomposition shows that the foreign-born obtain
more employment primarily through human capital acquisition and changes in
labour market conditions rather than higher returns to observable skills,
as sometimes seen in wage studies. In addition, our analysis suggests that
immigration policies may influence both labour demand and supply
incentives and are associated with structural shifts in the labour market.
Journal: Applied Economics
Pages: 4721-4730
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.589817
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589817
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4721-4730
Template-Type: ReDIF-Article 1.0
Author-Name: Loreto Lira
Author-X-Name-First: Loreto
Author-X-Name-Last: Lira
Author-Name: Magdalena Ugarte
Author-X-Name-First: Magdalena
Author-X-Name-Last: Ugarte
Author-Name: Rodrigo Vergara
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Vergara
Title: Prices and market structure: an empirical analysis of the supermarket industry in Chile
Abstract:
This article investigates empirically the relationship between market
structure and consumer prices in the supermarket industry in Chile. A
panel of monthly data from 16 cities in the period January 1998--September
2006 is used. We find that, the more concentrated the industry in a city,
the higher the prices, while the participation of major national chains in
cities tends to lower prices. In terms of magnitude, this latter effect
prevails over the former. Moreover, the dominant local chain is found to
behave differently depending on whether or not one of the national chains
is present in the city. Finally, we find that prices rise when a national
chain acquires another chain and both were previously in a city (inmerge)
while if only one of the two was present (outmerge), prices fall.
Journal: Applied Economics
Pages: 4731-4744
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595689
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595689
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4731-4744
Template-Type: ReDIF-Article 1.0
Author-Name: Vr M. González
Author-X-Name-First: Vr M.
Author-X-Name-Last: González
Author-Name: Francisco González
Author-X-Name-First: Francisco
Author-X-Name-Last: González
Title: Firm size and capital structure: evidence using dynamic panel data
Abstract:
This article suggests that the validity of the Trade-Off Theory (TOT) and
Pecking-Order Theory (POT) to explain financing decisions varies among
small, medium-sized and large firms. Using dynamic panel data tests on a
sample of 3439 Spanish firms over the period 1995--2003, results are
partially consistent with both explanations but suggest a greater validity
of pecking-order predictions for small firms. In small firms, the negative
influence of profitability and the positive influence of investment
opportunities and of intangible assets on firm debt predicted by the POT
are heightened. However, no differences are observed between small and
large firms in their speed of adjustment to the target leverage as
suggested by the TOT.
Journal: Applied Economics
Pages: 4745-4754
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595690
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595690
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4745-4754
Template-Type: ReDIF-Article 1.0
Author-Name: R. Kumazawa
Author-X-Name-First: R.
Author-X-Name-Last: Kumazawa
Author-Name: P. Gomis-Porqueras
Author-X-Name-First: P.
Author-X-Name-Last: Gomis-Porqueras
Title: An empirical analysis of patents flows and R&D flows around the world
Abstract:
In this article, we empirically investigate the effect of Research and
Development (R&D) flows on patent flows around the world. We do this using
an unbalanced panel consisting primarily of Organization for Economic
Co-operation and Development (OECD) countries that have both patent and
R&D expenditure information broken down by domestic and foreign sources.
Our analysis shows that even among a fairly homogeneous group of
countries, the sources of patents and R&D differ substantially. Using a
dynamic panel framework, we find that domestic R&D per capita increases
domestic patents per capita only for the European Patent Convention (EPC)
countries that already have a decentralized approach to innovation.
Foreign R&D per capita increases foreign patents per capita in all
countries even though foreign R&D constitutes a very small fraction of
total R&D. We find that some of these differences can be attributed to the
locations of the patent applications, including those to the European
Patent Office (EPO), United States Patent and Trademark Office (USPTO) and
triadic patent applications to the EPO, USPTO and Japan Patent Office
(JPO) simultaneously.
Journal: Applied Economics
Pages: 4755-4763
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528375
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528375
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4755-4763
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro de Faria
Author-X-Name-First: Pedro
Author-X-Name-Last: de Faria
Author-Name: Francisco Lima
Author-X-Name-First: Francisco
Author-X-Name-Last: Lima
Title: Interdependence and spillovers: is firm performance affected by others’ innovation activities?
Abstract:
The creation of new knowledge is a case in which agents' behaviour can
affect the performance of other actors positively, given that new
knowledge creates positive externalities in the market. In this context,
we investigate the existence of performance spillovers associated with
innovation activities by quantifying the innovation produced in
surrounding firms and controlling for the fact that a firm is itself an
innovation producer. We use data from the Third Community Innovation
Survey (CIS III) that measures innovation in a broad way, not reducing it
to R&D and patents, which departs from previous literature on spillovers.
Furthermore, to tackle the endogeneity of the innovation variables on the
firm production decision, we resort to the firm intellectual property
protection methods as an instrument. We found a positive spillover of
innovation on firm value added. The results also show that process
innovation spillovers are more prevalent than product innovation
spillovers.
Journal: Applied Economics
Pages: 4765-4775
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.560108
File-URL: http://hdl.handle.net/10.1080/00036846.2011.560108
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4765-4775
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Cowie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Cowie
Title: Contestability in bus markets -- evidence from the British de-regulated market
Abstract:
Following the 1985 Transport Act in Great Britain, reforms in the
provision of bus services continue across Europe and other parts of the
world to this day. The British experience, however, remains a key point of
study in informing these continuing developments. This article looks at
the issue of contestability in bus markets, and tests for the existence of
the contestable market in Britain through an examination of fare levels,
profit margins and technical efficiencies in 90 identifiable bus markets.
The main conclusion is that there is evidence of the contestable market in
Britain, however it can hardly be described as widespread, only found to
be present in 15 of the 90 markets identified in the sample. The real
issue however, particularly with regard to continuing reforms elsewhere in
Europe, is the ability of regulatory authorities to maintain competitive
and contestable (free) markets and the research suggests that in the face
of market forces this is simply not possible. The only conclusion
therefore is that contestability in the free market is not sustainable,
and thus can only be introduced directly through franchising.
Journal: Applied Economics
Pages: 4777-4785
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.564146
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564146
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4777-4785
Template-Type: ReDIF-Article 1.0
Author-Name: M. Hakan Berument
Author-X-Name-First: M. Hakan
Author-X-Name-Last: Berument
Author-Name: Zulal Denaux
Author-X-Name-First: Zulal
Author-X-Name-Last: Denaux
Author-Name: Yeliz Yalcin
Author-X-Name-First: Yeliz
Author-X-Name-Last: Yalcin
Title: Turkish monetary policy and components of aggregate demand: a VAR analysis with sign restrictions model
Abstract:
This article estimates the effects of monetary policy on components of
aggregate demand using quarterly data on Turkish economy from 1987--2008
by means of structural Vector Autoregression (VAR) methodology. This study
adopts Uhlig's (2005) sign restrictions on the impulse responses of main
macroeconomic variables to identify monetary shock. This study finds that
expansionary monetary policy stimulates output through consumption and
investment in the short-run. However, expansionary monetary policy is
ineffective in the long-run.
Journal: Applied Economics
Pages: 4787-4798
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.564151
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564151
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4787-4798
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Agiakloglou
Author-X-Name-First: Christos
Author-X-Name-Last: Agiakloglou
Author-Name: Apostolos Tsimpanos
Author-X-Name-First: Apostolos
Author-X-Name-Last: Tsimpanos
Title: An alternative approach for testing for linear association for two independent stationary AR(1) processes
Abstract:
Spurious correlations occur when two independent time series are found to
be correlated according to the typical statistical procedure for testing
the null hypothesis of zero correlation in the population. Using a Monte
Carlo analysis, this study examines the spurious correlation phenomenon
for two independent stationary AR(1) processes and it finds that if an
alternative testing procedure is applied, spurious behaviour is eliminated
using the variance of the sample correlation coefficient of these two
series, suggested by Bartlett (1935).
Journal: Applied Economics
Pages: 4799-4803
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595695
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595695
File-Format: text/html
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Handle: RePEc:taf:applec:44:y:2012:i:36:p:4799-4803
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Lucke
Author-X-Name-First: Bernd
Author-X-Name-Last: Lucke
Title: Testing the technology interpretation of news shocks
Abstract:
This article presents further evidence on the hypothesis of news driven
business cycles. I use a structural Vector Error Correction Model (VECM)
approach to identify news shocks as in Beaudry and Lucke (BL, 2010). I
document three facts: first, news shocks identified by BL are Granger
causal for US patent data; second, BL's analysis applied to German macro
data reveals very similar patterns: activity is largely driven by news,
and news shocks explain a sizable and increasing share of Total Factor
Productivity (TFP) variance at long horizons; and third, German news
shocks are Granger causal for German patent data and the pattern is,
again, very similar to the US. Since patent data in the US and Germany are
almost uncorrelated, the similarity is striking and strongly suggests a
technology interpretation of news shocks.
Journal: Applied Economics
Pages: 1-13
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.566209
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566209
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:1-13
Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Fatás
Author-X-Name-First: Enrique
Author-X-Name-Last: Fatás
Author-Name: Nikolaos Georgantz
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Georgantz
Author-Name: Juan A. Máñez
Author-X-Name-First: Juan A.
Author-X-Name-Last: Máñez
Author-Name: Gerardo Sabater
Author-X-Name-First: Gerardo
Author-X-Name-Last: Sabater
Title: Experimental duopolies under price guarantees
Abstract:
In a symmetric differentiated experimental duopoly we test the ability of
Price Guarantees (PGs) to raise prices above the competitive levels.
Different types of PGs (‘aggressive’ and
‘soft’ price-beating and price-matching) are implemented
either as an exogenously imposed market rule or as a business strategy.
Our results show that PGs may lead close to the collusive outcome,
depending on whether the interaction between duopolists is repeated and
provided that the guarantee is not of the ‘aggressive’
price-beating type.
Journal: Applied Economics
Pages: 15-35
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.568398
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568398
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:15-35
Template-Type: ReDIF-Article 1.0
Author-Name: Joo Heon Park
Author-X-Name-First: Joo Heon
Author-X-Name-Last: Park
Author-Name: Douglas L. MacLachlan
Author-X-Name-First: Douglas L.
Author-X-Name-Last: MacLachlan
Title: Estimating willingness to pay by risk adjustment mechanism
Abstract:
Measuring consumers’ Willingness To Pay (WTP) without considering
the level of uncertainty in valuation and the consequent risk premiums
will result in estimates that are biased toward lower values. This
research proposes a model and method for correctly assessing WTP in cases
involving valuation uncertainty. The new method, called Risk Adjustment
Mechanism (RAM), is presented theoretically and demonstrated empirically.
It is shown that the RAM outperforms the traditional method for assessing
WTP, especially in a context of a nonmarket good such as a totally new
product.
Journal: Applied Economics
Pages: 37-46
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.568404
File-URL: http://hdl.handle.net/10.1080/00036846.2011.568404
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:37-46
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: António Gomes de Menezes
Author-X-Name-First: António Gomes
Author-X-Name-Last: de Menezes
Author-Name: Jos頠 Cabral Vieira
Author-X-Name-First: Jos頠 Cabral
Author-X-Name-Last: Vieira
Title: Measurement of hospital efficiency, using a latent class stochastic frontier model
Abstract:
This article analyses the technical efficiency of Portuguese hospitals
from 1997 to 2008 with the latent class frontier model, enabling the
identification of different segments in the cost frontier. It is found
that there are three statistically significant segments in the sample,
leading to the conclusion that no common health policy can be applicable
to all the hospitals analysed, calling rather for policies conceived for
each hospital segment identified. The health policy based in the
identified segments enables a more accurate and cost effective management
of resources.
Journal: Applied Economics
Pages: 47-54
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.579061
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579061
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:47-54
Template-Type: ReDIF-Article 1.0
Author-Name: Constant I. Tra
Author-X-Name-First: Constant I.
Author-X-Name-Last: Tra
Title: Nonlinear income effects in random utility models: revisiting the accuracy of the representative consumer approximation
Abstract:
This article investigates the implications of nonlinear income effects in
Random Utility Models (RUM) for measuring general equilibrium welfare
impacts. A popular approach in applied welfare analysis is to approximate
the expected compensating variation (cv) for an amenity change as the cv
of a representative consumer whose indirect utility is given by the
expected maximum utility. However, this approach can be misleading in the
case of nonmarginal changes as it implies that changes in income do not
affect the consumer's choice. In this case the true expected cv can be
obtained via simulation. Empirical applications to recreational demand
find that the bias from the representative approach is small. This article
re-evaluates the accuracy of the representative consumer approximation in
the context of measuring the general equilibrium welfare impacts of large
environmental changes. Our findings suggest that, though the
representative consumer approximation could lead to biased point estimates
of the expected cv, this bias is overwhelmed by the size of the confidence
intervals that result from the empirical estimation of household
preferences.
Journal: Applied Economics
Pages: 55-63
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.589807
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589807
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:55-63
Template-Type: ReDIF-Article 1.0
Author-Name: Hugo J. Far𨀍
Author-X-Name-First: Hugo J.
Author-X-Name-Last: Far𨀍
Author-Name: Hugo M. Montesinos-Yufa
Author-X-Name-First: Hugo M.
Author-X-Name-Last: Montesinos-Yufa
Author-Name: Daniel R. Morales
Author-X-Name-First: Daniel R.
Author-X-Name-Last: Morales
Author-Name: C鳡r G. Aviles B.
Author-X-Name-First: C鳡r G.
Author-X-Name-Last: Aviles B.
Author-Name: Osmel Brito-Bigott
Author-X-Name-First: Osmel
Author-X-Name-Last: Brito-Bigott
Title: Does corruption cause encumbered business regulations? An IV approach
Abstract:
In this research we attempt to understand the effects of corruption on
business regulations measured by number of procedures, time and costs
involved in satisfying governmental requisites. Using Two-Stage-Least
Squares (2SLS) methods we lessen the problems associated with endogeneity
and uncovered the existence of a robust, positive, statistically
significant and quantitatively large direction channel from corruption to
encumbered business regulations. These results suggest the need to deter
corruption in order to improve business regulations. The quest to reduce
corruption worldwide acquires new relevancy given the findings of Djankov
et al. (2006) that countries with simple and
transparent regulations grow faster.
Journal: Applied Economics
Pages: 65-83
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.589814
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589814
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:65-83
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Decomposition of new venture growth into firm age, survey period and vintage effects
Abstract:
Firm data are accumulated on a yearly basis. In view of the linear
relationship of firm age + foundation
year = survey year, the fluctuations of firm data classified
by age and period cannot be decomposed into age, period and cohort
(foundation year) effects. Three decomposition methods are briefly
reviewed and applied to Japanese data on new ventures founded since 1995.
Regarding sales and employment growth, the age effect is the largest with
a downward trend, and the cohort effect is negligible. Regarding labour
productivity, the age effect indicates upward movements, and the cohort
effect is negligible. The reason of the negligible cohort effect is
discussed.
Journal: Applied Economics
Pages: 85-97
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.589815
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589815
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:85-97
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas G鲡rd Vaillant
Author-X-Name-First: Nicolas G鲡rd
Author-X-Name-Last: Vaillant
Author-Name: François-Charles Wolff
Author-X-Name-First: François-Charles
Author-X-Name-Last: Wolff
Title: Understanding how experts rate cigars: a ‘havanometric’ analysis
Abstract:
Drawing on data from an annual French guidebook published in 2004, this
article focuses on the determinants of experts’ ratings on Cuban
cigars. We find that high quality cigars are more likely to be recommended
to more experienced cigar lovers. Both the self-assessed quality and
recommendation depend on the length and diameter of the cigars, but also
on more subjective characteristics like number and type of aromas. Results
from a Fields’ decomposition show that the quality of cigars is
much more sensitive to the presence of a defect and number of aromas than
the experts’ recommendation, which is more influenced by the rarity
of cigars. Finally, it is essentially the cigars’ objective
characteristics that have an influence on their prices, meaning that
consumers truly benefit from additional qualitative information when
reading experts’ advice and ratings.
Journal: Applied Economics
Pages: 99-109
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.595691
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595691
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:99-109
Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨀠 P𨁏livero
Author-X-Name-First: Mar𨀠 P𨀍
Author-X-Name-Last: Olivero
Author-Name: Robert Madak
Author-X-Name-First: Robert
Author-X-Name-Last: Madak
Title: Financial integration within Europe and the international transmission of business cycles among industrialized countries
Abstract:
We exploit a dataset on financial integration within Europe to answer a
novel question in the international Real Business Cycle (RBC) literature.
Does financial integration within Europe matter for the international
transmission of business cycles between the United States and Europe? We
find that it does, and that as European countries become more financially
integrated among themselves, European business cycles start to
‘decouple’ from those in the United States. We show that
this is true for three macro indicators of economic activity: Gross
Domestic Product (GDP), consumption and investment, and for five
alternative measures of the degree of financial integration. We also show
that the effect of trade linkages becomes insignificant once financial
factors are accounted for. Our work has interesting policy implications
since it unveils the importance of further integration in the EU to slow
down the transmission of aggregate shocks among industrialized nations.
Journal: Applied Economics
Pages: 111-122
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.595693
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595693
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:111-122
Template-Type: ReDIF-Article 1.0
Author-Name: N. Winchester
Author-X-Name-First: N.
Author-X-Name-Last: Winchester
Author-Name: R. T. Stefani
Author-X-Name-First: R. T.
Author-X-Name-Last: Stefani
Title: An innovative approach to National Football League standings using bonus points
Abstract:
We investigate the inclusion of bonus points in the National Football
League (NFL) using a prediction model built on league points. Both
touchdown-based and narrow-loss bonuses are shown to be significant
determinants of match outcomes. This implies that including bonus points
in league standings generates a more accurate ranking of teams from best
to worst than a system that only rewards wins and ties. Our preferred
system awards four points for a win, two for a tie, one point for scoring
three or more touchdowns and one point for losing by seven or fewer
points. Such a system would also make it easier for supporters to identify
playoff contenders and place importance on otherwise meaningless
end-of-game plays in some matches, which would increase spectator
interest.
Journal: Applied Economics
Pages: 123-134
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.595694
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595694
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:123-134
Template-Type: ReDIF-Article 1.0
Author-Name: Chin Hsien Hsieh
Author-X-Name-First: Chin Hsien
Author-X-Name-Last: Hsieh
Author-Name: Fengyi Lin
Author-X-Name-First: Fengyi
Author-X-Name-Last: Lin
Title: Applying digital analysis to detect fraud: an empirical analysis of US marine industry
Abstract:
Firms have tendency to window dress their financial statements by
reporting earnings to achieve reference points represented by
N × 10 -super-k . Such practice of
reporting rounded earnings is likely due to (1) firms may believe that
investors perceive a reported earnings of $1.99 million to be
significantly less than $2.0 million; and/or (2) contracts between firms
and stakeholders are likely to express earnings in round numbers. Auditors
have employed more sophisticated digital analysis such as Benford's law,
as part of their fraud detection processes. This study investigated the
window dressing behaviour among firms in the US marine industry. The
findings of the study suggest that window dressing is a significant
practice among the marine firms. However, the extent of the pervasiveness
of such behaviour is less severe among marine firms than among all
publicly-listed firms in the entire US economy, suggesting that the
quality of financial statements of marine companies is higher than the
overall population of public companies.
Journal: Applied Economics
Pages: 135-140
Issue: 1
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605759
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605759
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:1:p:135-140
Template-Type: ReDIF-Article 1.0
Author-Name: Bedassa Tadesse
Author-X-Name-First: Bedassa
Author-X-Name-Last: Tadesse
Author-Name: Elias K. Shukralla
Author-X-Name-First: Elias K.
Author-X-Name-Last: Shukralla
Title: The impact of foreign direct investment on horizontal export diversification: empirical evidence
Abstract:
Using data on stocks of Foreign Direct Investment (FDI) from 131
countries spanning the years 1984 to 2004 and the number of products
exported by each country, we examine the effect of FDI on horizontal
export diversification. To quantify the effects, we utilize parametric
(quantile) and semi-parametric econometric methods. Results from both
approaches indicate that, in general, an increase in the stock of FDI
enhances the horizontal diversification of exports. The actual magnitude
of the effect however, varies greatly across countries depending on the
existing stock of FDI and stage of diversification, giving rise to an
almost inverted U-shaped relationship. A further look at our results
provides useful insights on the circumstances under which FDI may aid or
inhibit the horizontal expansion of exports.
Journal: Applied Economics
Pages: 141-159
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.595692
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595692
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:141-159
Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Mart-Sola
Author-X-Name-First: Cristina
Author-X-Name-Last: Mart-Sola
Author-Name: Pedro J. Garc𫑔eruel
Author-X-Name-First: Pedro J.
Author-X-Name-Last: Garc𫑔eruel
Author-Name: Pedro Mart-Solano
Author-X-Name-First: Pedro
Author-X-Name-Last: Mart-Solano
Title: Corporate cash holding and firm value
Abstract:
This study contrasts the effect of cash holding on firm value for a
sample of US industrial firms during 2001--2007. The study tests
empirically for the existence of an optimal cash level that maximizes firm
value. Second, the study analyses whether or not deviations from the
optimum cash level reduce firm value. The results show a concave relation
between cash holding and firm value, verifying the existence of an optimum
level of cash holding. Additionally consistent with the initial analysis,
deviations above and below optimal cash holding decreases the firm value.
Journal: Applied Economics
Pages: 161-170
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.595696
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595696
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:161-170
Template-Type: ReDIF-Article 1.0
Author-Name: Viet Anh Dang
Author-X-Name-First: Viet Anh
Author-X-Name-Last: Dang
Title: Testing capital structure theories using error correction models: evidence from the UK, France and Germany
Abstract:
We employ an error correction model of leverage to test the trade-off and
pecking order theories of capital structure for firms in the UK, France
and Germany. The error correction framework extends the partial adjustment
model by explicitly modelling changes in target leverage and past
deviations from such target as determinants of firms’ dynamic
leverage adjustment process. We also augment our empirical models to test
the pecking order theory. Using appropriate and advanced dynamic panel
data methods, we find that UK, French and German firms adjust towards
target leverage quickly in both the partial adjustment and error
correction models, which is consistent with the trade-off theory. We
further show that the trade-off theory explains these firms’
capital structure decisions better than the pecking order theory in the
models nesting the two theories.
Journal: Applied Economics
Pages: 171-190
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597724
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597724
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:171-190
Template-Type: ReDIF-Article 1.0
Author-Name: Ho-Chuan (River) Huang
Author-X-Name-First: Ho-Chuan (River)
Author-X-Name-Last: Huang
Author-Name: Chih-Chuan Yeh
Author-X-Name-First: Chih-Chuan
Author-X-Name-Last: Yeh
Title: Okun's law in panels of countries and states
Abstract:
This article contributes to the empirical literature of Okun's law in
three respects. First, in contrast to the limited data used in the
existing studies, we employ two extensive (across countries and across
states, i.e. within a country) panel data sets to investigate the validity
of Okun's law. Second, the use of the Pooled Mean Group (PMG) estimator
permits us not to pre-filter the data as often done in the current
literature, and can take into account the possibility of cointegration
between unemployment and output. Third, in addition to the short-run
relationship or cyclical components between unemployment and output, we
also estimate the long-run linkage between these two important variables.
Empirical results show that unemployment and output are long-run
cointegrated, irrespective of using country- or state-level data.
Moreover, the unemployment-output linkages are found to be negative and
highly significant both in the short- and long-run. Our results not only
confirm the validity of Okun's law (in the short-run) but also point out
that a similar tradeoff exists in the long run.
Journal: Applied Economics
Pages: 191-199
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597725
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597725
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:191-199
Template-Type: ReDIF-Article 1.0
Author-Name: Fırat Bilgel
Author-X-Name-First: Fırat
Author-X-Name-Last: Bilgel
Author-Name: Kien C. Tran
Author-X-Name-First: Kien C.
Author-X-Name-Last: Tran
Title: The determinants of Canadian provincial health expenditures: evidence from a dynamic panel
Abstract:
This article seeks to reveal the magnitude of the income elasticity of
health expenditure and the impact of non income determinants of health
expenditure across Canada. For this purpose, panel data on gross domestic
product, the relative price of health care, the share of publicly funded
health expenditure, the share of senior population and the life expectancy
at birth have been used to investigate the determinants of Canadian
provincial health expenditures over a 28 year period. Dynamic models of
health expenditure are analysed via Generalized Instrumental Variables
(GIV) and Generalized Method of Moments (GMM). Results indicate that the
long run income elasticity of health expenditure is substantially lower
than one. Thus, health care is far from being a luxury in Canada.
Journal: Applied Economics
Pages: 201-212
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597726
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597726
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:201-212
Template-Type: ReDIF-Article 1.0
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Mohan Nandha
Author-X-Name-First: Mohan
Author-X-Name-Last: Nandha
Author-Name: Yuan Yuan
Author-X-Name-First: Yuan
Author-X-Name-Last: Yuan
Title: Dynamics of CDS spread indexes of US financial sectors
Abstract:
This article examines the Credit Default Swap (CDS) spread index for
three sectors, banking, financial services and insurance, in the short and
long run. In the long run, the results show that the index of the
insurance sector which sells the long term CDS contracts has the highest
adjustment, while the banking sector is not error correcting. In the short
run, although the insurance sector CDS spread index has general predictive
power of all sector CDS spreads, the evidence suggests that the banking
sector particularly leads the financial services and this in turn leads
the insurance sector, implying a leading sector CDS pricing role for the
banking spreads in the short run. The short run sensitivity Generalized
Impulse Response Function (GIRF) and Generalized Variance Decomposition
(GVDC) analyses also demonstrate that the sectors’ credit risk
responds more to credit events in the banking sector than in the other two
sectors other than their own over a 50 day horizon. However, the lowest
cross sector CDS shock impacts in the short run come from the insurance
sector. These results are useful for regulators wishing to embark on new
regulations of these financial institutions such as Basel III.
Journal: Applied Economics
Pages: 213-223
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597727
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597727
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:213-223
Template-Type: ReDIF-Article 1.0
Author-Name: Heng-Chih Chou
Author-X-Name-First: Heng-Chih
Author-X-Name-Last: Chou
Author-Name: Rim Zaabar
Author-X-Name-First: Rim
Author-X-Name-Last: Zaabar
Author-Name: David Wang
Author-X-Name-First: David
Author-X-Name-Last: Wang
Title: Measuring and testing the long-term impact of terrorist attacks on the US futures market
Abstract:
This article investigates the long-term impact of the 11 September 2001
terrorist attacks on the maturity, volume and open interest effects for
the S&P 500 index futures contracts. Adopting Chou (2005a, b)'s
range-based volatility models, this article provides a number of
interesting results. For the maturity effect, we find evidence for a very
weak presence in the pre 9/11 period and no presence in the post 9/11
period, indicating that the maturity effect vanishes completely following
the event of 9/11. Despite a strong presence of the volume effect in both
periods, we detect a relative decrease in the presence during the post
9/11 period. The open interest effect shows a very weak presence during
the pre 9/11 period and a strong presence during the post 9/11 period,
indicating a stronger open interest effect following the event of 9/11.
Furthermore, we show that there is a bi-directional causality relationship
between futures volatility and trading volume during the pre 9/11 period,
and that the causality relationship between the two variables becomes
unidirectional during the post 9/11 period.
Journal: Applied Economics
Pages: 225-238
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597728
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597728
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:225-238
Template-Type: ReDIF-Article 1.0
Author-Name: Vincenzo Carrieri
Author-X-Name-First: Vincenzo
Author-X-Name-Last: Carrieri
Author-Name: Marcel Bilger
Author-X-Name-First: Marcel
Author-X-Name-Last: Bilger
Title: Preventive care: underused even when free. Is there something else at work?
Abstract:
Explaining the rationale of preventive care underuse is a difficult task
considering its great benefits for health. Underuse is even more difficult
to explain in countries like Italy where preventive care can be obtained
for free. In this article we investigate the determinants of prevention
underuse with an empirical model based on human capital theory which also
includes three factors to which little attention has been paid so far:
role played by the General Practitioner (GP), nonmonetary barriers to
access and health beliefs. We apply a recursive probit model explaining
both recourse to prevention and to the GP which allows us to adequately
measure the effect of the latter on the former and to quantitatively
compare the determinants of curative and preventive care. We find that the
GP plays a minor role in prevention use but that nonmonetary barriers to
access and health beliefs are strong determinants of preventive care
demand. Finally, we also find support for both Grossman's capital
depreciation theory (at younger ages) and Cropper's shorter pay-off period
theory (at older ages).
Journal: Applied Economics
Pages: 239-253
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597729
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597729
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:239-253
Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Tuesta
Author-X-Name-First: Vicente
Author-X-Name-Last: Tuesta
Title: The consumption-real exchange rate anomaly: nontraded goods and distribution services
Abstract:
In the data, Real Exchange Rates (RERs) tend to move in opposite
directions with respect to the relative consumption across countries.
Chari et al. (2002) refer to the inability of models to
replicate the previous stylized fact as the consumption-RER anomaly. In
this article, it is shown that an International Real Business Cycle (IRBC)
model, similar to the one proposed by Chari et al.
but extended by considering nontraded goods and an incomplete asset market
structure, can solve the anomaly. Nontradable goods amplify wealth effects
arising from the incomplete assets market structure, generating a negative
co-movement between the RER and relative consumption. Adding Distribution
Services (DS) improves the performance of the model in some other
dimensions. In particular, DS help to generate countercyclical net
exports.
Journal: Applied Economics
Pages: 255-271
Issue: 2
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597730
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597730
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Handle: RePEc:taf:applec:45:y:2013:i:2:p:255-271
Template-Type: ReDIF-Article 1.0
Author-Name: Daehwan Kim
Author-X-Name-First: Daehwan
Author-X-Name-Last: Kim
Author-Name: Jung Inn Kim
Author-X-Name-First: Jung Inn
Author-X-Name-Last: Kim
Author-Name: Taeyoon Sung
Author-X-Name-First: Taeyoon
Author-X-Name-Last: Sung
Title: Stock market liberalization and price response: gradualism versus cold turkey
Abstract:
We present a simple analytical framework that illustrates the impact of
two types of market liberalization on stock prices: cold turkey versus
gradual liberalization. Using this theoretical framework, we show that
gradual stock market liberalization can have a negative impact on stock
prices when such gradual liberalization increases uncertainty about future
stock prices. We examine the liberalization experience of the Korean stock
market, and find that our analysis could be relevant in that case.
Journal: Applied Economics
Pages: 273-285
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597731
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597731
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:273-285
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph M. Santos
Author-X-Name-First: Joseph M.
Author-X-Name-Last: Santos
Title: Trading grain now and then: the relative performance of early grain-futures markets
Abstract:
Popular hostilities toward futures trading in the United States date to
the nineteenth century, when many Americans perceived then-nascent grain
exchanges as little more than gaming parlours that existed to serve the
illegitimate aspirations of gamblers--a depiction that, if anything,
compromises the legitimacy of modern futures exchanges. Yet, agricultural
historians have largely praised the performance of these early markets,
which they contend were shaped by commercial interests who sought
successfully to mitigate price risk. In any case, our understanding of how
early futures markets performed is fragmented, and so such claims remain
largely unsubstantiated in a quantifiable sense. Even so, futures-price
data are available for the late-nineteenth century, thanks to the Chicago
Board of Trade (CBT), which pioneered grain-futures trading in the 1860s.
In this article, I test and compare the performance of wheat, corn, and
oats futures prices on the CBT from 1880 to 1890 and from 1997 to 2007. My
results indicate that grain-futures markets in both periods are efficient
in the long run. Short-run performance is mixed, and inefficiency is more
evident in the nineteenth century. On balance, my results support the
notion that early grain-futures exchanges benefited commercial interests
and the grain trade more generally.
Journal: Applied Economics
Pages: 287-298
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597732
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597732
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:287-298
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund
Author-X-Name-First: Christian
Author-X-Name-Last: Grund
Author-Name: Andreas Schmitt
Author-X-Name-First: Andreas
Author-X-Name-Last: Schmitt
Title: Works councils, wages and job satisfaction
Abstract:
We investigate the effects of works councils on employees' wages and job
satisfaction in general and for subgroups with respect to sex and
occupational status. Making use of a German representative sample of
employees, we find that employees, who move to a firm with a works
council, report increases in job satisfaction, but do not receive
particular wage increases. Especially the job satisfaction of female
employees is affected by a change in works council status. However, we do
not find support for the hypothesis that the introduction of a works
council itself increases wages or job satisfaction for the employees
staying at the firm.
Journal: Applied Economics
Pages: 299-310
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597735
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597735
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:299-310
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Mart-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Mart-Zarzoso
Title: The log of gravity revisited
Abstract:
This article evaluates the performance of alternative estimation methods
for gravity models with heteroscedasticity and zero trade values. Both
problematic issues, recently addressed by Santos Silva and Tenreyro in an
influential paper, are re-examined here. We use Monte Carlo simulations to
compare the Pseudo Poisson Maximum Likelihood (PPML) estimator recommended
by Santos Silva and Tenreyro, a Gamma Pseudo-Maximum-Likelihood (GPML), a
Nonlinear Least Squares (NLS) estimator and a Feasible Generalized Least
Squares (FGLS) estimator with more traditional techniques. Additionally,
estimates of the gravity equation are obtained for three different data
sets with the abovementioned methods. The results of the simulation study
indicate that, although the PPML estimator is less affected by
heteroscedasticity than others are, its performance is similar, in terms
of bias and SEs, to the FGLS estimator performance, in particular for
small samples. GPML presents however the lowest bias and SEs in the
simulations without zero values. The results of the empirical estimations,
using three different samples containing real data, indicate that the
choice of estimator has to be made for each specific dataset. It is highly
recommended to follow a model selection approach using a number of tests
to select the more appropriate estimator for any application.
Journal: Applied Economics
Pages: 311-327
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.599786
File-URL: http://hdl.handle.net/10.1080/00036846.2011.599786
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:311-327
Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Klomp
Author-X-Name-First: Jeroen
Author-X-Name-Last: Klomp
Author-Name: Jakob De Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: De Haan
Title: Do political budget cycles really exist?
Abstract:
Most recent cross-country studies on election-motivated fiscal policy
assume that the data can be pooled. As various tests suggest that our data
for some 70 democratic countries for the period 1970--2007 cannot be
pooled, we use the Pooled Mean Group (PMG) estimator to test whether
Political Budget Cycles (PBCs) exist in our sample. We find that fiscal
policy is only affected by upcoming elections in the short run. Our
results suggest that the occurrence of a PBC is conditional on the level
of development and democracy, government transparency, the country's
political system, its membership of a monetary union and its degree of
political polarization.
Journal: Applied Economics
Pages: 329-341
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.599787
File-URL: http://hdl.handle.net/10.1080/00036846.2011.599787
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:329-341
Template-Type: ReDIF-Article 1.0
Author-Name: Alexis Direr
Author-X-Name-First: Alexis
Author-X-Name-Last: Direr
Title: Are betting markets efficient? Evidence from European Football Championships
Abstract:
This article investigates the degree of efficiency of the European
Football online betting market by using odds quoted by 12 bookmakers on 21
European championships over 11 years. We show that systematically picking
out odds inferior to a threshold delivers a rate of return of 4.45% if
best odds are selected across bookmakers and 2.78% if mean odds are used.
This amounts to backing overwhelmingly favourites whose probability of
winning exceeds 90%. Our results only exploit information contained in
odds, are robust to the use of real-time data and different sample periods
and hold under risk neutrality and expected utility preferences for
realistic degrees of risk aversion. Transaction costs reduce profitability
but only for small stake bets.
Journal: Applied Economics
Pages: 343-356
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.602010
File-URL: http://hdl.handle.net/10.1080/00036846.2011.602010
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:343-356
Template-Type: ReDIF-Article 1.0
Author-Name: Peter H. van der Meer
Author-X-Name-First: Peter H.
Author-X-Name-Last: van der Meer
Author-Name: Rudi Wielers
Author-X-Name-First: Rudi
Author-X-Name-Last: Wielers
Title: What makes workers happy?
Abstract:
This article answers the question what makes workers happy? It does so by
combining insights from micro-economics, sociology and psychology. Basis
is the standard utility function of a worker that includes income and
hours of work and is elaborated with job characteristics. In this way it
is possible to answer whether part-time workers are happier than full-time
workers. The utility function is estimated on basis of the European Social
Survey 2004 which contains all necessary information. The results show
that workers optimize income and hours of work as predicted by
micro-economics, but also that part-time workers are happier than
full-time workers. Challenging work with a high level of autonomy makes
the workers happy, work pressure makes workers unhappy. Higher educated
workers are unhappier than lower educated workers, we find a negative
effect of education, but this is compensated by the type of jobs these
higher educated hold.
Journal: Applied Economics
Pages: 357-368
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.602011
File-URL: http://hdl.handle.net/10.1080/00036846.2011.602011
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:357-368
Template-Type: ReDIF-Article 1.0
Author-Name: Travis Ng
Author-X-Name-First: Travis
Author-X-Name-Last: Ng
Author-Name: Terence Tai-Leung Chong
Author-X-Name-First: Terence Tai-Leung
Author-X-Name-Last: Chong
Author-Name: Man-Tat Siu
Author-X-Name-First: Man-Tat
Author-X-Name-Last: Siu
Author-Name: Benjamin Everard
Author-X-Name-First: Benjamin
Author-X-Name-Last: Everard
Title: What determines the price of a racing horse?
Abstract:
This article uses the data of 10 auctions from the two largest Australian
auction houses to study how a racing horse is priced. We ask whether
bloodline is indeed a determining factor. We find that the track record of
its parents and siblings are important factors in determining the price of
a yearling. Moreover, more mature horses and those purchased by foreign
buyers are generally more expensive. We also show that racing horses sold
in the flagship auctions are associated with a significant premium.
Journal: Applied Economics
Pages: 369-382
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605553
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605553
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:369-382
Template-Type: ReDIF-Article 1.0
Author-Name: Suyanto
Author-X-Name-First:
Author-X-Name-Last: Suyanto
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence
Abstract:
The spillovers of Foreign Direct Investment (FDI) on domestic
firms’ performances have been highly debated for many years. This
article contributes to this debate by analysing spillovers effects on
technical efficiency of Indonesian pharmaceutical sector using a unique
unbalanced panel of highly disaggregated (at five-digit International
Standard Industrial Classification (ISIC)) 210 firms over the period
1990--1995 (1001 observations). The Stochastic Production Frontier (SPF)
and the Data Envelopment Analysis (DEA) based on
Malmquist Productivity Indices (MPI) have been used to
test the spillovers effects of FDI on technical efficiency. The empirical
results from the SPF show that foreign firms are more efficient than
domestic competitors, and the presence of the former increases the
inefficiency of the latter. Similarly the results from the MPI demonstrate
that FDI has a negative and significant impact on technical efficiency
changes in domestic competitors, but generate positive spillovers to
domestic suppliers.
Journal: Applied Economics
Pages: 383-395
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605554
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605554
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:383-395
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Erik Askildsen
Author-X-Name-First: Jan Erik
Author-X-Name-Last: Askildsen
Author-Name: Tor Helge Holmås
Author-X-Name-First: Tor Helge
Author-X-Name-Last: Holmås
Title: Wages and work conditions as determinants for physicians’ work decisions
Abstract:
It is not uncommon that publicly employed physicians also have income
from work outside the hospital, sometimes termed moonlighting. There is
little empirical evidence of such activity. In this article, we
investigate which factors that may influence physicians’ choice of
work between the public hospital sector and elsewhere. An exceptionally
high wage increase in 1996 for one group of hospital physicians (physician
assistants) serves as a natural experiment, and we analyse whether wages
in general and this reform in particular have affected physicians’
external earnings. For physician assistants we find that higher wages at
public hospitals affect negatively both the decisions to earn income
externally, and level of income once active. For chief physicians, on the
other hand, there was no such response to the wage increase. Several
hospital specific factors representing job specific work characteristics
also matter for physicians’ decisions to earn income externally.
Journal: Applied Economics
Pages: 397-406
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605756
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605756
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:3:p:397-406
Template-Type: ReDIF-Article 1.0
Author-Name: Desiderio Romero-Jordán
Author-X-Name-First: Desiderio
Author-X-Name-Last: Romero-Jordán
Author-Name: Marta Jorge Garc𫑉n鳠
Author-X-Name-First: Marta Jorge
Author-X-Name-Last: Garc𫑉n鳠
Author-Name: Santiago Álvarez Garc𨀍
Author-X-Name-First: Santiago Álvarez
Author-X-Name-Last: Garc𨀍
Title: The impact of fuel tourism on retailers’ diesel price in Spanish neighbouring regions
Abstract:
Since 1986, car fuel consumption in Spain has been subject to the Special
Hydrocarbons Tax and the Value Added Tax. In addition, since 2002 regional
governments have been able to apply a regional excise duty on
hydrocarbons. This article analyses the impact that such a regional tax
has on the retailer's diesel price at the border of the province of Lugo
(in the region of Galicia) and the province of Leon (in the region of
Castile Leon) (only the former region has the regional tax). Evidence
shows that variations in the price of diesel at the border of Lugo are of
the same sign but of lower intensity than at the border of Leon (the
price--price elasticity is 0.8060). These results suggest that service
stations located in regions with higher excise duties use their price
policy to lessen the negative effects generated for fuel tourism.
Journal: Applied Economics
Pages: 407-413
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.605757
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605757
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:407-413
Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Gonçalves
Author-X-Name-First: Ricardo
Author-X-Name-Last: Gonçalves
Author-Name: Pedro Pita Barros
Author-X-Name-First: Pedro Pita
Author-X-Name-Last: Barros
Title: Economies of scale and scope in the provision of diagnostic techniques and therapeutic services in Portuguese hospitals
Abstract:
This article analyses the provision of auxiliary clinical services that
are typically carried out within the hospital. We estimate a flexible cost
function for three of the most important (cost-wise) diagnostic techniques
and therapeutic services in Portuguese hospitals: Clinical Pathology,
Medical Imaging, and Physical Medicine and Rehabilitation. Our objective
in carrying out this estimation is the evaluation of economies of scale
and scope in the provision of these services. For all services, we find
evidence of economies of scale and some evidence of economies of scope. We
also find evidence of diminishing returns to management, whereby larger
hospitals appear to have surpassed their optimal size. These results have
important policy implications and can be related to the ongoing discussion
of where and how should hospitals provide these services.
Journal: Applied Economics
Pages: 415-433
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.605758
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605758
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:415-433
Template-Type: ReDIF-Article 1.0
Author-Name: C. Hopp
Author-X-Name-First: C.
Author-X-Name-Last: Hopp
Author-Name: A. Dreher
Author-X-Name-First: A.
Author-X-Name-Last: Dreher
Title: Do differences in institutional and legal environments explain cross-country variations in IPO underpricing?
Abstract:
We empirically analyse the determinants of Initial Public Offering (IPO)
underpricing using panel data for 24 countries over the period 1988--2005.
Our hypotheses stress the importance of institutional and legal factors in
explaining cross-country variations. We find evidence that underpricing is
higher in countries with stronger protection of outside investors,
suggesting that incumbent managers try to use underpricing as a tool to
safeguard their private benefits of control when going public. Moreover,
the results show that underpricing is reduced when stronger law
enforcement and the availability of accounting information reduce the
value of private benefits of control.
Journal: Applied Economics
Pages: 435-454
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.605760
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605760
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:435-454
Template-Type: ReDIF-Article 1.0
Author-Name: Claude Lopez
Author-X-Name-First: Claude
Author-X-Name-Last: Lopez
Author-Name: Christian J. Murray
Author-X-Name-First: Christian J.
Author-X-Name-Last: Murray
Author-Name: David H. Papell
Author-X-Name-First: David H.
Author-X-Name-Last: Papell
Title: Median-unbiased estimation in DF-GLS regressions and the PPP puzzle
Abstract:
Using median-unbiased estimation based on Augmented Dickey--Fuller (ADF)
regressions, recent research has questioned the validity of Rogoff's
‘remarkable consensus’ of 3--5 year half-lives of deviations
from Purchasing Power Parity (PPP). The confidence intervals of these
half-life estimates, however, are extremely wide, with lower bounds of
about 1 year and upper bounds of infinity. We extend median-unbiased
estimation to the Dickey--Fuller Generalized Least Square (DF-GLS)
regression of Elliott et al. (1996). We find that
combining median-unbiased estimation with this regression has the
potential to tighten confidence intervals for the half-lives. Using
long-horizon real exchange rate data, we find that the typical lower bound
of the confidence intervals for median-unbiased half-lives is just below 3
years. Thus, while previous confidence intervals for median-unbiased
half-lives are consistent with virtually anything, our tighter confidence
intervals are inconsistent with economic models with nominal rigidities as
candidates for explaining the observed behaviour of real exchange rates
and move us away from solving the PPP puzzle.
Journal: Applied Economics
Pages: 455-464
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.605761
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605761
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:455-464
Template-Type: ReDIF-Article 1.0
Author-Name: Jørgen Juel Andersen
Author-X-Name-First: Jørgen Juel
Author-X-Name-Last: Andersen
Title: The Dutch disease and intergenerational welfare
Abstract:
Governments in resource abundant economies face a tradeoff between
transferring wealth to present generations and saving for future
generations. Employing an overlapping generations framework with
endogenous growth, this article analyses the intergenerational welfare
effects of: (1) a wealth transfer policy where the entire wealth is
transferred to the generations alive at present; (2) an income transfer
policy where the wealth is saved and the permanent income of the wealth is
transferred to all present and future generations, forever. Not
surprisingly, present generations are unambiguously better off with the
wealth transfer policy. Less trivially, however, the wealth transfer
policy can be associated with higher welfare also for future generations.
The intuition for this result is that while a wealth transfer depresses
growth only in the periods subsequent to the transfer, income transfers
constitute a permanent drag on growth. Perhaps counter to the naïve
intuition, the policy of saving the wealth and distributing the permanent
income to all present and future generations is less beneficial for the
future generations if the real return to saving is high.
Journal: Applied Economics
Pages: 465-476
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.605762
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605762
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:465-476
Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Khamis
Author-X-Name-First: Melanie
Author-X-Name-Last: Khamis
Title: Does the minimum wage have a higher impact on the informal than on the formal labour market? Evidence from quasi-experiments
Abstract:
This article investigates a puzzle in the literature on labour markets in
developing countries: labour legislations not only have an impact on the
formal labour market but also an impact on the informal sector. It has
even been argued that the impact on the informal sector in the case of the
minimum wage is stronger than on the formal sector. Using
quasi-experiments of minimum wage changes and thereby exploiting
geographical variation of the minimum wage bite, I find evidence for this
hypothesis. Informal workers, workers without social security
contribution, experienced significant wage increases when the minimum wage
was raised while formal workers did not. This result highlights that
noncompliance with one labour legislation, the social security
contribution, does not necessarily imply noncompliance to other labour
laws such as the minimum wage.
Journal: Applied Economics
Pages: 477-495
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.605763
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605763
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:477-495
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Baglioni
Author-X-Name-First: Angelo
Author-X-Name-Last: Baglioni
Author-Name: Luca Colombo
Author-X-Name-First: Luca
Author-X-Name-Last: Colombo
Title: The efficiency view of corporate boards: theory and evidence
Abstract:
We build a model in which corporate governance allows for the adoption of
an institution acting as a mechanism to control agency problems. Our model
predicts that the incentive to adopt such an institution is decreasing in
ownership concentration and increasing in free cash flow. Testing our
theoretical model by means of a sample of 157 Italian listed companies
over the period 2004--2007, we find that board composition favours
independent members in firms with a large free cash flow, and executive
members in firms with high ownership concentration, supporting the view of
governance as a way to limit agency costs.
Journal: Applied Economics
Pages: 497-510
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.605764
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605764
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:497-510
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Bönisch
Author-X-Name-First: Peter
Author-X-Name-Last: Bönisch
Author-Name: Philipp Gaffert
Author-X-Name-First: Philipp
Author-X-Name-Last: Gaffert
Author-Name: Joachim Wilde
Author-X-Name-First: Joachim
Author-X-Name-Last: Wilde
Title: The impact of skills on remigration flows
Abstract:
More than 10 years after the seminal paper by Borjas and Bratsberg
(1996), modelling the impact of skills on remigration, the empirical
evidence on that theory is still mixed. Our article is to shed light on
that issue. Using the German Socio-Economic Panel (GSOEP) we test two
hypotheses derived from Borjas and Bratsberg (1996) while allowing for
endogeneity of host country-specific capital. Our results give strong
support for their theory. Additionally a sensitivity analysis shows that
the insignificance of education in previous studies is due to the test
design conducted and cannot be interpreted as falsification of Borjas and
Bratsberg's (1996) theory.
Journal: Applied Economics
Pages: 511-524
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.605765
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605765
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:511-524
Template-Type: ReDIF-Article 1.0
Author-Name: Hal W. Snarr
Author-X-Name-First: Hal W.
Author-X-Name-Last: Snarr
Title: Was it the economy or reform that precipitated the steep decline in the US welfare caseload?
Abstract:
Objectives of the 1996 overhaul of the US welfare system included
reducing dependency, raising employment and de-incentivizing
out-of-wedlock fertility. Using public use state-level panel data from
1990 to 2005, I analyse how state implementation of welfare reform
simultaneously affects the caseload, employment and out-of-wedlock births
(henceforth, Temporary Assistance for Needy Families (TANF) objectives).
Because endogeneity and simultaneity could not be rejected, I use
Three-Stage Least Squares (3SLS) method. Results indicated that most of
the steep decline in the caseload is attributed to welfare reform, while
the economy's overall effect paled in comparison. However, lagged and
contemporaneous unemployment individually ranked second and third behind
the Hispanic share of state population. The conservative tilt over the
period studied ranked forth, followed in declining order by full family
sanctions, Earned Income Tax Credit (EITC) payments, time limits (lagged
by length), access to abortion clinics, lump-sum TANF diversion payments,
and TANF benefit payments. Findings also suggest that policy does not
always work as intended: caseloads are found to be higher in states that
have highly regarded family formation and job retention TANF programs; and
EITC payments are associated with lower not higher
caseloads. The most compelling finding in this study is that low-income
families likely turn first to unemployment insurance and
then to TANF assistance.
Journal: Applied Economics
Pages: 525-540
Issue: 4
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.607135
File-URL: http://hdl.handle.net/10.1080/00036846.2011.607135
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Handle: RePEc:taf:applec:45:y:2013:i:4:p:525-540
Template-Type: ReDIF-Article 1.0
Author-Name: Todd C. Neumann
Author-X-Name-First: Todd C.
Author-X-Name-Last: Neumann
Title: The effect of drinking and smoking on the labour market outcomes of low-income young adults
Abstract:
Among adults the causal ‘drinking bonus’ and
‘smoking penalty’ have been estimated to be as large as 12%
and 24%, respectively. The magnitudes of these effects compare in size
with many active labour market programs targeted at low-income young
adults. This article extends the literature by examining these
relationships in such a group. Somewhat surprisingly the data indicate
that just as in the greater population young drinkers have more favourable
labour market outcomes than nondrinkers. However, when a fixed-effects
approach is used to identify causal impacts there is no evidence that
drinking has a positive impact on labour market outcomes and some evidence
for negative returns to drinking. The smoking penalty is estimated to be
much smaller among this group and not statistically significant. Finally,
estimates suggest that the observed correlations between consumption and
labour market outcomes are biased by unobserved characteristics of the
individual as well as unobservables that change over time that are likely
causing the treatment decision.
Journal: Applied Economics
Pages: 541-553
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.579063
File-URL: http://hdl.handle.net/10.1080/00036846.2011.579063
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:541-553
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Da Silva
Author-X-Name-First: Sergio
Author-X-Name-Last: Da Silva
Author-Name: Dinorá Baldo
Author-X-Name-First: Dinorá
Author-X-Name-Last: Baldo
Author-Name: Raul Matsushita
Author-X-Name-First: Raul
Author-X-Name-Last: Matsushita
Title: Biological correlates of the Allais paradox
Abstract:
We conducted a questionnaire study with student subjects to look for
explicit correlations between selected biological characteristics of the
subjects and manifestation of the Allais paradox in the pattern of their
choices between sets of two pairs of risky prospects. We found that
particular characteristics, such as gender, menstrual cycle, mother's age
at delivery, parenthood, second- to fourth-digit ratio, perceived negative
life events, and emotional state, can be related to the paradox. Women,
particularly when not menstruating, are less susceptible to the paradox.
Those born to not-too-young mothers are also less prone to the paradox.
The same holds true for men who have fathered children and had been
exposed to high levels of prenatal testosterone, people who had
experienced many negative life events, and those who were anxious,
excited, aroused, happy, active, or fresh at the time of the experiment.
Further, left-handers and atheists may be less inclined to display the
paradox.
Journal: Applied Economics
Pages: 555-568
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.607133
File-URL: http://hdl.handle.net/10.1080/00036846.2011.607133
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:555-568
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Lawrenz
Author-X-Name-First: Jochen
Author-X-Name-Last: Lawrenz
Title: Time-series properties of the dividend--price ratio with social dynamics
Abstract:
We model an exchange economy where a finite number of standard identical
agents interact locally and analyse the time-series properties of the
simulated dividend--price ratio dp
t . Our results document that a sufficient degree
of social dynamics induces high persistence in dp
t which leads to the failure to reject the null of
a unit root, as well as the failure to reject the null that dividends and
prices are not cointegrated. At the same time, we find that returns are
not significantly autocorrelated, thus, being consistent with weak-form
market efficiency. Finally, we document that although dp
t is highly persistent, econometric tests
may still find predictability of future returns by current dividend--price
ratios.
Journal: Applied Economics
Pages: 569-579
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.607134
File-URL: http://hdl.handle.net/10.1080/00036846.2011.607134
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:569-579
Template-Type: ReDIF-Article 1.0
Author-Name: Roxana Radulescu
Author-X-Name-First: Roxana
Author-X-Name-Last: Radulescu
Author-Name: Martin Robson
Author-X-Name-First: Martin
Author-X-Name-Last: Robson
Title: Does labour market flexibility matter for investment? A study of manufacturing in the OECD
Abstract:
This study examines whether a more flexible labour market -- defined here
in terms of the strictness of labour regulations regarding the flexibility
of employers to adjust levels of employment in response to changing
economic conditions -- helps to promote a higher level of fixed capital
formation in an economy. Theory generates ambiguous predictions concerning
the sign of the relationship between investment and the labour market
regulation regarding hiring and firing workers, although a positive
relationship may be expected. Using an index of labour market regulation
compiled from surveys of business executives in 19 Organization for
Economic Co-operation and Development (OECD) economies, an econometric
analysis is carried out to examine the effects of labour market
flexibility on the level of investment in the manufacturing sector. The
findings support the proposition that freeing-up regulatory constraints on
employers’ use of labour helps to create a more favourable
environment for investment.
Journal: Applied Economics
Pages: 581-592
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.607633
File-URL: http://hdl.handle.net/10.1080/00036846.2011.607633
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:581-592
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Title: Inflation targeting, flexible exchange rates and inflation convergence
Abstract:
Using a disaggregated level Consumer Price Index (CPI) data, this article
compares convergence properties of regional inflation rates in a small
open economy, Turkey, between pre-inflation-targeting and
inflation-targeting periods, where the latter also corresponds to a
flexible exchange rate regime. It is found that during the
inflation-targeting period, Turkish regional inflation rates have
converged to each other in terms of CPI groups with relatively nontradable
components, while they have diverged from each other in terms of CPI
groups with relatively tradable components. Since a common and sound
monetary policy among the regions of a country is supposed to have a
convergence effect on regional inflation rates according to the
conventional wisdom, the results for CPI groups with relatively tradable
components require further attention and have significant policy
implications, especially for inflation-targeting countries using flexible
exchange rate regimes.
Journal: Applied Economics
Pages: 593-603
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.608642
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608642
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:593-603
Template-Type: ReDIF-Article 1.0
Author-Name: Wai Mun Fong
Author-X-Name-First: Wai Mun
Author-X-Name-Last: Fong
Title: Time diversification under loss aversion: a bootstrap analysis
Abstract:
We examine the problem of time diversification from the viewpoint of
prospect theory investors. We use a block bootstrap approach to generate
returns of US stocks and Treasury bills for time horizons ranging from 1
year to 20 years. On average, value functions computed using these
bootstrapped returns are mainly positive and increase monotonically with
the time horizon. The strategy that yields the highest average value
function is the one that buys and holds an all-equity portfolio for 20
years. In contrast, mean-variance optimal portfolios are more
conservative, with the optimal proportion of the portfolio invested in
stocks declining with time horizon. Our results suggest that time
diversification ought to be viewed more favourably by prospect theory
investors than by mean-variance investors.
Journal: Applied Economics
Pages: 605-610
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.608643
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608643
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:605-610
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Faff
Author-X-Name-First: Robert
Author-X-Name-Last: Faff
Author-Name: Yew-Kee Ho
Author-X-Name-First: Yew-Kee
Author-X-Name-Last: Ho
Author-Name: Weiling Lin
Author-X-Name-First: Weiling
Author-X-Name-Last: Lin
Author-Name: Chee-Meng Yap
Author-X-Name-First: Chee-Meng
Author-X-Name-Last: Yap
Title: Diminishing marginal returns from R&D investment: evidence from manufacturing firms
Abstract:
This study analyses the association between R&D Investment (RDI) and
growth opportunities and show that there exists diminishing marginal
returns in manufacturing firms. Extant literature has found that besides
R&D investment, systematic risk, financial leverage and complementary
asset investment are also associated with growth opportunities.
Accordingly, we employ structural equation modelling to simultaneously
estimate both a direct influence of RDI as well as indirect influences of
RDI on growth opportunities via these three mediating effects. We find
that the direct effect of incremental RDI on growth opportunities is
independent of R&D intensity. Instead, the heterogeneous effects of RDI on
systematic risk, financial leverage and complementary asset investment
across firms with different R&D intensity level accounts for the
diminishing marginal returns to R&D investment. We specifically observe
that the greatest indirect effect is via the financial leverage of the
firm. This study shows the importance of accounting for the
interdependencies in R&D investment.
Journal: Applied Economics
Pages: 611-622
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.608644
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608644
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:611-622
Template-Type: ReDIF-Article 1.0
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: The information content of the Reserve Bank of Australia's inflation forecasts
Abstract:
In this article, the inflation forecasts produced by the Reserve Bank of
Australia (RBA) and that generated by private forecasters, are used to
assess whether the Reserve Bank possesses information about inflation that
the private sector does not have. The results show that the Reserve Bank
inflation forecasts embody useful predictive information about inflation,
beyond that contained in private forecasts, over the recent inflation
targeting period.
Journal: Applied Economics
Pages: 623-628
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.608646
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608646
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:623-628
Template-Type: ReDIF-Article 1.0
Author-Name: James J. Forest
Author-X-Name-First: James J.
Author-X-Name-Last: Forest
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: Alternative estimators of cointegrating parameters in models with nonstationary data: an application to US export demand
Abstract:
This article presents Monte Carlo simulations which compare the empirical
performance of two alternative single equation estimators of the
equilibrium parameters in a dynamic relationship. The estimators
considered are Stock and Watson's Dynamic Ordinary Least Squares (DOLS)
estimator and Bewley's transformation of the general autoregressive
distributed lag model. The results indicate that the Bewley transformation
produces a lower mean-square error as well as superior serial correlation
properties even with lower truncation lags for the lagged variables
included in the estimation equation. An application is then provided which
examines the nature of the equilibrium relationship between aggregate US
exports, world trade and the US real exchange rate. This confirms that
estimation of the equilibrium parameters of this relationship by the
Bewley transformation produces results which are superior to estimation by
DOLS.
Journal: Applied Economics
Pages: 629-636
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.608647
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608647
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:629-636
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Charles Harvie
Author-X-Name-First: Charles
Author-X-Name-Last: Harvie
Author-Name: Indika Karunanayake
Author-X-Name-First: Indika
Author-X-Name-Last: Karunanayake
Title: Global output growth and volatility spillovers
Abstract:
This article examines discernable patterns of real Gross Domestic Product
(GDP) growth co-movements across 29 countries, using consistent time
series data (1912--2008). Of these countries, only 12 are found to form
three statistically significant groupings (i.e. G6-six Organization for
Economic Co-operation and Development (OECD) European countries, G4-four
Anglo-Saxon countries, and G2-two major Asian countries). One may then
conclude that, inter alia, geographical proximity,
cultural ties, and the level of socio-economic and financial ties among
countries determine the global systematic co-movements of growth rates.
Our results indicate that any recession in the US initially engulfs other
Anglo-Saxon countries as well as G6 and G2 countries, before exerting its
adverse knock-on effects to the rest of the world. A Multivariate
Generalized Autoregressive Conditional Heteroscedasticity (MGARCH) model
is also used to examine the transmission of GDP growth across these three
groups and their corresponding volatility spillovers. We find significant
bi-directional cross-mean spillovers between the G4 and G6 blocs. In terms
of cross-volatility spillovers, the estimated persistence varies from a
maximum 0.959 (G4--G6) to a minimum of 0.832 (G2--G4).
Journal: Applied Economics
Pages: 637-649
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.608648
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608648
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:637-649
Template-Type: ReDIF-Article 1.0
Author-Name: Young Jun Kim
Author-X-Name-First: Young Jun
Author-X-Name-Last: Kim
Author-Name: George Clarke
Author-X-Name-First: George
Author-X-Name-Last: Clarke
Title: Determinants of inter-firm technology licensing in the EU
Abstract:
This article investigates the determinants of technology licensing,
focusing on how country-specific characteristics affect technology
holders’ incentives to sell their proprietary technologies through
licensing alliances. An empirical examination of licensing is done using a
unique panel data set of licensing transactions involving companies in the
EU. The strength of Intellectual Property Rights (IPR) protection, the
degree of economic freedom, the level of country risk, and the number of
patent granted in the country are found to be important determinants of
inter-firm technology licensing. In addition, firms with prior independent
experience as a licensor and public companies tend to license technology
more.
Journal: Applied Economics
Pages: 651-661
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610746
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610746
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:651-661
Template-Type: ReDIF-Article 1.0
Author-Name: Dorrit Posel
Author-X-Name-First: Dorrit
Author-X-Name-Last: Posel
Author-Name: Daniela Casale
Author-X-Name-First: Daniela
Author-X-Name-Last: Casale
Title: The relationship between sex ratios and marriage rates in South Africa
Abstract:
We investigate the relationship between alternative definitions of sex
ratios and marriage outcomes among African and white women in South
Africa. In contrast to marriages among whites, African marriages in South
Africa traditionally have involved the payment of bridewealth (or
ilobolo) by a husband to the prospective wife's family.
Using matched data from the 2001 Population Census and the South African
Labour Force Surveys, we find that among Africans, both the quantity and
quality of unmarried men relative to women in local marriage markets are
significant predictors of marriage. However, economic-based measures of
marriageability have a larger effect on marriage outcomes than simple sex
ratios. These findings are consistent with the argument that bridewealth
payments act as a financial constraint to marriage among African couples,
raising the marriageability criteria of men. In contrast, we find mostly
insignificant results for the relationship between sex ratios and marriage
outcomes among white women.
Journal: Applied Economics
Pages: 663-676
Issue: 5
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610749
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610749
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Handle: RePEc:taf:applec:45:y:2013:i:5:p:663-676
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Brooks
Author-X-Name-First: Robert
Author-X-Name-Last: Brooks
Author-Name: Edwyna Harris
Author-X-Name-First: Edwyna
Author-X-Name-Last: Harris
Author-Name: Yovina Joymungul
Author-X-Name-First: Yovina
Author-X-Name-Last: Joymungul
Title: Price clustering in Australian water markets
Abstract:
The finding of clustering in financial prices on particular digits is
common across a broad range of financial markets. This article explores
whether price clustering is also present in the case of the weekly market
for seasonal water in rural Victoria, Australia. We find a similar degree
of clustering in the seasonal water market. This suggests that the trading
activities of the market produce characteristics that are similar to more
sophisticated and deeper financial markets.
Journal: Applied Economics
Pages: 677-685
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610747
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610747
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:677-685
Template-Type: ReDIF-Article 1.0
Author-Name: Federico Biagi
Author-X-Name-First: Federico
Author-X-Name-Last: Biagi
Author-Name: Danilo Cavapozzi
Author-X-Name-First: Danilo
Author-X-Name-Last: Cavapozzi
Author-Name: Raffaele Miniaci
Author-X-Name-First: Raffaele
Author-X-Name-Last: Miniaci
Title: Employment transitions and computer use of older workers
Abstract:
Our empirical analysis studies the impact of computer use on out of
employment transitions of older workers, disentangling the effect of using
a Personal Computer (PC) at work from that of being PC literate. Data are
drawn from the 2000, 2002 and 2004 waves of the Bank of Italy
Survey on Household Income and Wealth. We provide
empirical evidence that, even controlling for a wide set of covariates,
older employees who use a PC at work have a higher probability of
remaining employed in the future. However, our results also indicate that,
once PC literacy is controlled for, the use of a PC at work decreases only
marginally the risk of becoming not employed (i.e. the effect is smaller
than the one registered when we do not control for PC literacy).
Journal: Applied Economics
Pages: 687-696
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610748
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610748
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:687-696
Template-Type: ReDIF-Article 1.0
Author-Name: Teemu Kautonen
Author-X-Name-First: Teemu
Author-X-Name-Last: Kautonen
Author-Name: Marco van Gelderen
Author-X-Name-First: Marco
Author-X-Name-Last: van Gelderen
Author-Name: Erno T. Tornikoski
Author-X-Name-First: Erno T.
Author-X-Name-Last: Tornikoski
Title: Predicting entrepreneurial behaviour: a test of the theory of planned behaviour
Abstract:
This article contributes to the occupational choice literature pertaining
to entrepreneurship by applying the Theory of Planned Behaviour (TPB) to
predict entrepreneurial behaviour. Originating from social psychology, the
TPB posits that intention, a function of behavioural beliefs, is a
significant predictor of subsequent behaviour. In spite of an established
stream of scholarship explaining the formation of entrepreneurial
intentions, empirical research has not yet employed longitudinal data to
examine whether the intention to start a business measured at one point of
time translates into subsequent entrepreneurial behaviour. This article
provides a full test of the TPB in the prediction of business start-up
intentions and subsequent behaviour based on two-wave survey data (2006
and 2009) from the working-age population in Finland. The econometric
results support the predictions outlined in the TPB: attitude, perceived
behavioural control and subjective norms are significant predictors of
entrepreneurial intention; and intention and perceived behavioural control
are significant predictors of subsequent behaviour. This research thus
provides support to the application of the TPB and the concept of
behavioural intention to understand the emergence of complex economic
behaviour such as entrepreneurship prior to the onset of any observable
action.
Journal: Applied Economics
Pages: 697-707
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610750
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610750
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:697-707
Template-Type: ReDIF-Article 1.0
Author-Name: Håkan Eggert
Author-X-Name-First: Håkan
Author-X-Name-Last: Eggert
Author-Name: Ragnar Tveterås
Author-X-Name-First: Ragnar
Author-X-Name-Last: Tveterås
Title: Productivity development in Icelandic, Norwegian and Swedish fisheries
Abstract:
This article analyses the Total Factor Productivity (TFP) performance of
fisheries in Iceland, Norway and Sweden during the period 1973 to 2003. We
measure TFP growth using real gross value added as output and capital
input, labour input and a stock input index based on the major fish
stocks. In developed neighbouring countries, we expect rapid diffusion of
fishing technology innovations contributing to productivity convergence.
In addition, innovations in the public regulation and the industrial
organization may also have influenced productivity growth during the
period. We find that Iceland had the highest annual TFP growth. Accounting
for stock changes, it amounts to 3%, while the corresponding figures for
Sweden and Norway are 2.8% and 0.8%, respectively. Despite best practice
fishing technologies being widely available, we find no evidence of
productivity convergence among the three countries.
Journal: Applied Economics
Pages: 709-720
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610751
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610751
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:709-720
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Stephan Popp
Author-X-Name-First: Stephan
Author-X-Name-Last: Popp
Title: Size and power properties of structural break unit root tests
Abstract:
In this article, we compare the small sample size and power properties of
a newly developed endogenous structural break unit root test of Narayan
and Popp (NP, 2010) with the existing two break unit root tests, namely
the Lumsdaine and Papell (LP, 1997) and the Lee and Strazicich (LS, 2003)
tests. In contrast to the widely used LP and LS tests, the NP test chooses
the break date by maximizing the significance of the break dummy
coefficient. Using Monte Carlo simulations, we show that the NP test has
better size and high power, and identifies the structural breaks
accurately. Power and size comparisons of the NP test with the LP and LS
tests reveal that the NP test is significantly superior.
Journal: Applied Economics
Pages: 721-728
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610752
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610752
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Template-Type: ReDIF-Article 1.0
Author-Name: Philip Inyeob Ji
Author-X-Name-First: Philip Inyeob
Author-X-Name-Last: Ji
Title: Do country-specific shocks matter? Evidence from Australia and high income countries
Abstract:
A stylized fact of global upward trend in domestic-world output ratio for
major small open economies is recognized in comparison with Australia's
dichotomous experience with the ratio. This fact is used to shed light on
the importance of country-specific shocks for small open economies using a
simple real business cycle model. While it has been previously found that
country-specific shocks are more significant source of business cycle
fluctuations than worldwide shocks for Australia before the 1990s, this
article suggests that the country-specific shocks may have become an
important driver of output growth only in the early 1990s for Australia.
Journal: Applied Economics
Pages: 729-739
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610753
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610753
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:729-739
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Rubb
Author-X-Name-First: Stephen
Author-X-Name-Last: Rubb
Title: Overeducation, undereducation and asymmetric information in occupational mobility
Abstract:
Due to short-term asymmetric information, overeducated and undereducated
workers are shown to have different optimal strategies in seeking upward
occupational mobility into their next positions. Undereducated workers
typically have other human capital strengths, but these strengths are not
marketable to outsiders. Overeducated workers typically have other human
capital weaknesses that are not apparent to outsiders while their excess
schooling is marketable in labour markets with dynamic asymmetric
information. This article presents empirical evidence showing that job
tenure increases the probability of upward occupational mobility more if
individuals are undereducated. Moreover, the probability of finding upward
occupational mobility is increased by overeducated workers engaging in
firm switching. This article also validates prior empirical studies
finding overeducated workers more likely to self report engaging in firm
switching activities and more likely to experience upward occupational
mobility than others.
Journal: Applied Economics
Pages: 741-751
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610754
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610754
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:741-751
Template-Type: ReDIF-Article 1.0
Author-Name: Jeng-Yan Tsai
Author-X-Name-First: Jeng-Yan
Author-X-Name-Last: Tsai
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: Optimal bank interest margin and default risk in equity returns under the return to domestic retail with structural breaks
Abstract:
A retrenchment in crossborder credit is under way, the product of both
market forces and political pressure on international banks to lend at
home (Economist, 2009). In addition, banks, particularly the largest, have
also dramatically expanded their retail banking operations over the past
few years (Hirtle and Stiroh, 2007). Our goal, in this article, is to
study the effects of default risk on equity returns through bank interest
margin management under a renewed focus on domestic retail banking, a
trend often attributed to the stability of banking activities.
Specifically, this article explores the determinants of optimal bank
interest margins based on an option-based firm-theoretical model with
multiple sources of structural breaks due to political pressure. The model
demonstrates how capital regulation and political pressure on foreign
lending return and risk conditions jointly determine the optimal bank
interest margin decision. We show that a more stringent capital
requirement is linked with lower equity return, but higher default risk of
the bank in the return to domestic retail banking. An increased focus on
the political pressure on foreign lending return is linked with higher
equity return and default risk of the bank. It is also showed that an
increased focus on the political pressure on foreign lending risk
decreases the bank's equity return and default risk. We conclude that the
return to domestic retail banking may be a relatively stable activity when
the political pressure decision impacts only the expected risk of the
bank's foreign lending and not the return.
Journal: Applied Economics
Pages: 753-764
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.610755
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610755
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:753-764
Template-Type: ReDIF-Article 1.0
Author-Name: Shao-Chi Chang
Author-X-Name-First: Shao-Chi
Author-X-Name-Last: Chang
Author-Name: Ming-Tse Tsai
Author-X-Name-First: Ming-Tse
Author-X-Name-Last: Tsai
Title: The effect of prior alliance experience on acquisition performance
Abstract:
Information asymmetry usually results in acquiring a target where
post-acquisition performance is often disappointing. In this study, we
examine whether previous bidder--target alliances mitigate the negative
effect of information asymmetry. Further, in cases when the target firms
in an acquisition are from the high technology or service industries or
privately held firms, whereby the firms are composed of unique knowledge,
intangible assets and less disclosed information, respectively, we test
whether there are significantly more acquisitions when prior
bidder--target alliances exist, as it is assumed that these alliances
reduce the level of information asymmetry. We find on average the post
acquisition stock performance is better when the purchasing firm acquires
a prior alliance partner. Furthermore, when acquiring privately held
target firms, the target firms are more likely to be previous alliance
partners. Finally, when the target firms are ‘more informed’
(i.e. high technology, service or privately held firms), the post
acquisition performance is disappointing. However, bidder--target
alliances reduce the amount of value destroyed.
Journal: Applied Economics
Pages: 765-773
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.613767
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613767
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:765-773
Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Lin Tao
Author-X-Name-First: Hung-Lin
Author-X-Name-Last: Tao
Author-Name: Shih-Yung Chiu
Author-X-Name-First: Shih-Yung
Author-X-Name-Last: Chiu
Title: Income growth, redistribution, and subjective well-being in Taiwan -- a simulation study
Abstract:
This study simulates different income growth and income distribution
scenarios in Taiwan in 2001, and examines how social happiness and
people's happiness at different income levels change. Without taking
downward comparison into consideration, the simulation supports income
redistribution in favour of the poor. When the downward comparison is
taken into consideration, the simulation does not support any kind of
income redistribution. The present study investigates the relationship
between income inequality and subjective well-being, and shows that a
change in the Gini index can be interpreted in terms of a shift in
revealed subjective well-being.
Journal: Applied Economics
Pages: 775-791
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.613768
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613768
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:775-791
Template-Type: ReDIF-Article 1.0
Author-Name: Roland Craigwell
Author-X-Name-First: Roland
Author-X-Name-Last: Craigwell
Author-Name: Troy Lorde
Author-X-Name-First: Troy
Author-X-Name-Last: Lorde
Author-Name: Winston Moore
Author-X-Name-First: Winston
Author-X-Name-Last: Moore
Title: Fiscal policy and the duration of financial crises
Abstract:
Financial systems across the world have all come under pressure due to
the on-going financial crisis. One of the most often asked questions
during a collapse is how long and how deep will the decline be as well as
what policy initiatives can be employed to shorten the recession. This
study estimates a model of the duration of financial crises in an attempt
to identify whether fiscal policy can reduce the time to recovery. The
results suggest that fiscal shocks, which could provoke an overreaction on
the part of markets, tend to lengthen crisis duration. Significant
nonlinear effects of government spending are also reported in relation to
trade openness and financial openness.
Journal: Applied Economics
Pages: 793-801
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.613769
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613769
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:793-801
Template-Type: ReDIF-Article 1.0
Author-Name: Giap V. Nguyen
Author-X-Name-First: Giap V.
Author-X-Name-Last: Nguyen
Author-Name: Curtis M. Jolly
Author-X-Name-First: Curtis M.
Author-X-Name-Last: Jolly
Title: A cointegration analysis of seafood import demand in Caribbean countries
Abstract:
Cointegration analysis and error correction model are used to estimate
seafood import demand for selected Caribbean countries. The results show
that seafood import is price elastic. Exchange rate has a negative effect,
while Gross Domestic Product (GDP) and tourism have positive effects on
seafood imports. Import and domestic production do not have a short run
causal relationship. The increase in Caribbean seafood imports is
primarily due to decreasing import price and increasing domestic demand.
The decline of domestic fisheries production has other causes than import
competition. However, imports and domestic production have a negative long
run equilibrium relationship. Tariff and production expansion policies
both help producers, but tariff may reduce total economic surplus, while
supply expansion can increase total economic surplus.
Journal: Applied Economics
Pages: 803-815
Issue: 6
Volume: 45
Year: 2013
Month: 2
X-DOI: 10.1080/00036846.2011.613771
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613771
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Handle: RePEc:taf:applec:45:y:2013:i:6:p:803-815
Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Aloy
Author-X-Name-First: Marcel
Author-X-Name-Last: Aloy
Author-Name: Mohamed Boutahar
Author-X-Name-First: Mohamed
Author-X-Name-Last: Boutahar
Author-Name: Karine Gente
Author-X-Name-First: Karine
Author-X-Name-Last: Gente
Author-Name: Anne P駵in-Feissolle
Author-X-Name-First: Anne
Author-X-Name-Last: P駵in-Feissolle
Title: Long-run relationships between international stock prices: further evidence from fractional cointegration tests
Abstract:
The recent empirical literature supports the view that most of the
international stock prices are not pairwise cointegrated. However, by
using fractional cointegration techniques, this article shows that France,
Germany, Hong Kong and Japan's stock prices indices are pairwise
fractionally cointegrated with US stock prices. Equilibrium errors are
mean reverting with half-life lying between 2 and 12 days. It is
worthwhile noting that emerging markets like Brazil and Argentina are not
pairwise cointegrated with the US stock market. These new results have
important implications for asset pricing and international portfolio
strategy.
Journal: Applied Economics
Pages: 817-828
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.566207
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566207
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:817-828
Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Fendel
Author-X-Name-First: Ralf
Author-X-Name-Last: Fendel
Author-Name: Michael Frenkel
Author-X-Name-First: Michael
Author-X-Name-Last: Frenkel
Author-Name: Jan-Christoph Rülke
Author-X-Name-First: Jan-Christoph
Author-X-Name-Last: Rülke
Title: Do professional forecasters trust in Taylor-type rules? -- Evidence from the Wall Street Journal poll
Abstract:
This article uses the monthly Wall Street Journal poll between 2002 and
2010 to analyse whether professional economic forecasters believe in and,
thus, apply Taylor-type rules for their own forecasts. Using their
forecasts for the Federal Funds rate, the inflation rate and capacity
utilization, we estimate whether these are internally consistent with the
message of Taylor(-type) rules. We find that the expectation formation can
indeed be described by Taylor-type rules.
Journal: Applied Economics
Pages: 829-838
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613770
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613770
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:829-838
Template-Type: ReDIF-Article 1.0
Author-Name: Olga Murova
Author-X-Name-First: Olga
Author-X-Name-Last: Murova
Author-Name: Benaissa Chidmi
Author-X-Name-First: Benaissa
Author-X-Name-Last: Chidmi
Title: Technical efficiency of US dairy farms and federal government programs
Abstract:
In this article, Technical Efficiency (TE) of dairy farms is estimated
and analysed with two methodologies: Data Envelopment Analysis (DEA) and
Stochastic Frontier Analysis (SFA). Using DEA, the TE scores for different
states are determined. Further, logistic regression is applied to TE
scores to explain how known technical and policy variables affect a farm's
probability of being efficient. The second methodology employs SFA to
estimate and analyse TE scores. Two federal milk policies are considered
in this research: marketing policy and milk income loss policy. Federal
milk marketing program has shown a significant and negative impact on TE
with both methods. Payments under the milk income loss program have shown
a positive significant impact in SFA analysis. Both methodologies produced
similar outcomes on regional impacts and on the significance of several
considered variables. Categorical representation of some variables in
graphs provided some additional insights of their effects on TE.
Journal: Applied Economics
Pages: 839-847
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613772
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613772
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:839-847
Template-Type: ReDIF-Article 1.0
Author-Name: Su Zhou
Author-X-Name-First: Su
Author-X-Name-Last: Zhou
Title: Nonlinearity and stationarity of inflation rates: evidence from the euro-zone countries
Abstract:
Earlier studies hardly reject the hypothesis of a unit root in inflation.
Few studies have examined the possibility of nonlinearity in inflation and
tested nonlinear stationarity of the inflation rates. This study thus
intends to fill the gap. This study utilizes the tests for nonlinearity
along with the unit root tests that allow for nonlinearity in the
variables to examine the stationarity of inflation rates of 12 European
countries that formed the Euro Zone (EZ) later in the sample period. The
results suggest that the majority of these countries’ inflation
rates can be characterized by mean reversion during the floating exchange
rate period. Many of them appear to be nonlinear stationary. This finding
is essential in conducting applied economic studies for these countries,
when constructing models whose validity relies on whether or not inflation
is stationary. The results of this study also imply that shocks to
inflation have a transitory effect on inflation in the euro area.
Therefore, it would be less costly in exercising the policies of
disinflation for the monetary authorities of the euro area than for those
of the countries with nonstationary inflation.
Journal: Applied Economics
Pages: 849-856
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613774
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613774
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:849-856
Template-Type: ReDIF-Article 1.0
Author-Name: Damien Échevin
Author-X-Name-First: Damien
Author-X-Name-Last: Échevin
Title: Employment and education discrimination against disabled people in Cape Verde
Abstract:
This article assesses the employment and school enrolment gaps between
disabled and nondisabled persons using the last Cape Verdean census. The
unexplained part of these gaps accounts for most of them, whatever the age
group considered. Furthermore, differences in age structures between
disabled and nondisabled persons have almost no effect on these gaps.
Taking into account potential misclassification errors in the disability
variable seems to change only marginally these results. These findings
thus suggest that there is scope for programs to better target and promote
employment and education of the disabled in Cape Verde.
Journal: Applied Economics
Pages: 857-875
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613775
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613775
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:857-875
Template-Type: ReDIF-Article 1.0
Author-Name: C. Jill Stowe
Author-X-Name-First: C. Jill
Author-X-Name-Last: Stowe
Title: Breeding to sell: a hedonic price analysis of leading Thoroughbred sire stud fees
Abstract:
This article utilizes panel data on leading Thoroughbred sires from 1999
until 2008 and estimates the determinants of their stud fees, or the price
paid for the rights to one breeding season, and the marginal value of
those characteristics. Using a Fixed Effects (FE) estimation procedure, we
find strong evidence of ‘breeding to sell’: stud fees for
established sires are determined primarily by the sales prices of their
progeny. Other determinants include a sire's ability to produce sons who
go on to become sires themselves, current year progeny racing performance
and cumulative racing performance of a sire's progeny.
Journal: Applied Economics
Pages: 877-885
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613776
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613776
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:877-885
Template-Type: ReDIF-Article 1.0
Author-Name: Edinaldo Tebaldi
Author-X-Name-First: Edinaldo
Author-X-Name-Last: Tebaldi
Author-Name: Bruce Elmslie
Author-X-Name-First: Bruce
Author-X-Name-Last: Elmslie
Title: Does institutional quality impact innovation? Evidence from cross-country patent grant data
Abstract:
This article contributes to the literature on institutions and economic
growth by conducting an empirical examination of the links between
innovation and institutions. Using cross-country data and the instrumental
variable method, this study finds that institutional arrangements explain
much of the cross country variations in patent production. Our results
also imply that controlling for institutional quality, geographic related
variables are not significant in explaining patent production. This
article also finds evidence to support the idea that in the long run human
capital accumulation is an important factor in shaping institutions.
Journal: Applied Economics
Pages: 887-900
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613777
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613777
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:887-900
Template-Type: ReDIF-Article 1.0
Author-Name: Ofer H. Azar
Author-X-Name-First: Ofer H.
Author-X-Name-Last: Azar
Title: Firm strategy and biased decision making: the price dispersion puzzle
Abstract:
This article confronts the empirical evidence and theoretical predictions
about the correlation between price dispersion and price. Theoretically,
search and location differentiation models suggest that price dispersion
is a function of search and transportation costs, but is independent of
the good's price. Empirical evidence, however, suggests otherwise: price
dispersion and price are strongly correlated. This article points out the
discrepancy between theory and evidence, which it denotes as ‘the
price dispersion puzzle’. It then explains why the documented
behaviour of relative thinking (people behave as if their search or
transportation costs are increasing in the good's price) can solve the
puzzle.
Journal: Applied Economics
Pages: 901-910
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613778
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613778
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:901-910
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Feeny
Author-X-Name-First: Simon
Author-X-Name-Last: Feeny
Author-Name: Bazoumana Ouattara
Author-X-Name-First: Bazoumana
Author-X-Name-Last: Ouattara
Title: The effects of health aid on child health promotion in developing countries: cross-country evidence
Abstract:
Although epidemiological knowledge in relation to child health has
improved in the last few decades, around 3 million children die each year
in developing countries from preventable diseases. The international
development community views increased immunization coverage for children
as an important step in eliminating or reducing these deaths. Many
developing countries have very limited resources to tackle major health
problems and have to rely on external finance. This article examines the
impact of foreign aid devoted to the health sector on child health
promotion in developing countries. Two proxies for child health promotion
are used: (a) immunization against measles and (b) immunization against
Diphtheria--Pertussis--Tetanus (DPT). A range of model specifications and
panel data econometric techniques are applied to data covering the period
1990 to 2005. This article finds a positive and statistically significant
link between health aid and the measures of child health promotion.
Journal: Applied Economics
Pages: 911-919
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613779
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613779
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:911-919
Template-Type: ReDIF-Article 1.0
Author-Name: Almuhanad Melhim
Author-X-Name-First: Almuhanad
Author-X-Name-Last: Melhim
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: Cost economies in the presence of marketing contracts
Abstract:
We examine the impact of marketing contracts on farm cost structure and
implied scale and scope economies for large samples of dairy, corn and
wheat farms. We consider a multi-product, multi-market technology to
examine returns from diversifying marketing schemes. Allowing for risk
preferences under price uncertainty, we estimate the contract adoption
decision, risk preferences and structural parameters simultaneously. We
derive measures of economies for both contracting and noncontracting
farms. Each industry exhibits significant scope and multi-output scale
economies but vary in product-specific scale economies. We find that
marketing contracts improve returns to corn and wheat farms, but not to
dairy farms.
Journal: Applied Economics
Pages: 921-932
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613780
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613780
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:921-932
Template-Type: ReDIF-Article 1.0
Author-Name: H. Schmale
Author-X-Name-First: H.
Author-X-Name-Last: Schmale
Author-Name: T. Ehrmann
Author-X-Name-First: T.
Author-X-Name-Last: Ehrmann
Author-Name: A. Dilger
Author-X-Name-First: A.
Author-X-Name-Last: Dilger
Title: Buying without using -- biases of German BahnCard buyers
Abstract:
We use a large data set of German railway travellers to analyse the
purchasing decision for fare-reducing BahnCards. We expect that this
tariff choice is neither completely rational nor irrational, but
bounded-rational in a meaningful way. Actually we predict a flat-rate
bias, i.e. an under-use of their BahnCards by many customers. However, we
estimate that this bias is not too large. The empirical results approve
our hypotheses for the most part, especially for the more expensive
BahnCard50 (BC50), whereas the under-use of the cheaper BahnCard25 (BC25)
is so extensive that it is not worthwhile on average.
Journal: Applied Economics
Pages: 933-941
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613781
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613781
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:933-941
Template-Type: ReDIF-Article 1.0
Author-Name: Ghassem A. Homaifar
Author-X-Name-First: Ghassem A.
Author-X-Name-Last: Homaifar
Author-Name: Jonathan Adongo
Author-X-Name-First: Jonathan
Author-X-Name-Last: Adongo
Author-Name: Kevin M. Zhao
Author-X-Name-First: Kevin M.
Author-X-Name-Last: Zhao
Title: The long-run relationship between stock return dispersion and output
Abstract:
Based on the rational that some industry groups are more closely linked
to the business cycle than others, we re-examined a previous analysis on
the long-term relationship between stock return dispersion by industry and
Gross Domestic Product (GDP), which evaluated data until 1987 by extending
it to 2008. Using Mean Square Forecast Errors (MSFE) statistics, we find
that incorporating the return dispersion in Vector Autoregressive (VAR)
models enhances their forecasting power for output (GDP) in the long run.
This article also determines that the relationship between stock return
dispersion by industry and GDP is tenuous in the recent decade from 1999.
Journal: Applied Economics
Pages: 943-952
Issue: 7
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613792
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613792
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Handle: RePEc:taf:applec:45:y:2013:i:7:p:943-952
Template-Type: ReDIF-Article 1.0
Author-Name: Yohannes Kinfu
Author-X-Name-First: Yohannes
Author-X-Name-Last: Kinfu
Title: The efficiency of the health system in South Africa: evidence from stochastic frontier analysis
Abstract:
The availability of increased resources and the lack of parallel
improvement in health status have renewed interest on health system
performance, particularly where progress towards the Millennium
Development Goals has been slow. Since the political transition in 1994,
South Africa has consistently invested over eight of its Gross Domestic
Product (GDP) on health, but so far returns remain uneven, with some
localities delivering lower outcomes than others, even when they have
comparable input levels. This study measures the performance of the
country's health system, following a stochastic production frontier
approach. Results have revealed that eight of the 52 districts in the
country had an efficiency score of below 60%, and in four of these, the
score was below 50%. Technical inefficiency was positively and
significantly associated with HIV prevalence and illiteracy rates reported
for districts. Overall mean technical efficiency (TE) in the country was
around 80%. Given this, further improvements in health outcome in the
country are expected to depend both on its ability to address existing
inefficiencies and on the capacity to invest additional resources in
communities where existing services were already inadequate.
Journal: Applied Economics
Pages: 1003-1010
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613787
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613787
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:1003-1010
Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: Don J. Webber
Author-X-Name-First: Don J.
Author-X-Name-Last: Webber
Title: Australasian money demand stability: application of structural break tests
Abstract:
Estimates of the demand for money provide important foundations for
monetary policy setting but if the estimation technique does not
explicitly account for structural changes then such estimates will be
biased. This article presents an investigation into the level and
stability of money demand (M1) for Australia and New
Zealand over the period 1960--2009 and demonstrates that both countries
experienced regime shifts; Australia also experienced an intercept shift.
Application of four time series methods provide consistent results with
1984 and 1998 break dates. Cumulative Sum (CUSUM) and CUSUMSQ stability
tests reveal that M1 demand functions were unstable over
the period 1984--1998 for both countries although tests for stability are
not rejected thereafter.
Journal: Applied Economics
Pages: 1011-1025
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613788
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613788
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:1011-1025
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Bodman
Author-X-Name-First: Philip
Author-X-Name-Last: Bodman
Author-Name: Thanh Le
Author-X-Name-First: Thanh
Author-X-Name-Last: Le
Title: Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus
Abstract:
We further examine the channels through which Foreign Direct Investment
(FDI) develops the national productivity of host countries. We investigate
whether FDI is an effective channel of technological transfer across
borders and whether that technology transfer is bi-directional: from an
investing country to a host country and vice versa. In particular, an
analysis is provided of whether FDI helps channel more resources towards
the promotion of education activities and hence augments economic growth
indirectly through augmenting the host country's absorptive
capacity. Also, the analysis uses a novel approach to take into
account the possibility that physical distances can act as a barrier to
economic and technological interactions amongst countries, by embedding a
measure of geographical distance into two specific channels: international
trade and FDI. Empirical results obtained all lend strong support to these
hypotheses.
Journal: Applied Economics
Pages: 1027-1039
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613789
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613789
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:1027-1039
Template-Type: ReDIF-Article 1.0
Author-Name: L. G. González Ortiz
Author-X-Name-First: L. G. González
Author-X-Name-Last: Ortiz
Author-Name: G. Masiero
Author-X-Name-First: G.
Author-X-Name-Last: Masiero
Title: Disentangling spillover effects of antibiotic consumption: a spatial panel approach
Abstract:
Literature on socioeconomic determinants of antibiotic consumption in the
community is limited to few countries using cross-sectional data. This
article analyses regional variations in outpatient antibiotics in Italy
using a balanced panel dataset covering the period 2000 to 2008. We
specify an econometric model in which antibiotic consumption depends upon
demographic and socioeconomic characteristics of the population, the
supply of health care services in the community, and antibiotic
copayments. The model is estimated by means of Ordinary Least Squares
(OLS) techniques with Fixed Effects (FE). The implications of consumption
externalities across geographical areas are investigated by means of
Spatial-Lag and Spatial-Error models (SLFE and SEFE). We find significant
and positive income elasticity and negative effects of copayments.
Antibiotic use is also affected by the age structure of the population and
the supply of community health care. Finally, we find evidence of spatial
dependency in the use of antibiotics across regions. This suggests that
regional policies (e.g. public campaigns) aimed at increasing efficiency
in antibiotic consumption and controlling bacterial resistance may be
influenced by policy makers in neighbouring regions. There will be scope
for a strategic and coordinated view of regional policies towards the use
of antibiotics.
Journal: Applied Economics
Pages: 1041-1054
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613790
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613790
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:1041-1054
Template-Type: ReDIF-Article 1.0
Author-Name: Mudziviri Nziramasanga
Author-X-Name-First: Mudziviri
Author-X-Name-Last: Nziramasanga
Author-Name: Jonathan Yoder
Author-X-Name-First: Jonathan
Author-X-Name-Last: Yoder
Title: The check in the mail: household characteristics and migrant remittance from the US to Mexico
Abstract:
We develop a household model of migrant remittance that supports testable
hypotheses about the effect of migrant income, family composition and
distribution, transaction costs associated with remittance mode, income
and residence security, and other household characteristics on remittance
levels and frequency. We test these hypotheses using survey data on
individual Mexican migrants in the United States. The results are broadly
consistent with our hypotheses.
Journal: Applied Economics
Pages: 1055-1073
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613791
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613791
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:1055-1073
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro M. G. Martins
Author-X-Name-First: Pedro M. G.
Author-X-Name-Last: Martins
Title: Do large capital inflows hinder competitiveness? The Dutch disease in Ethiopia
Abstract:
This article investigates whether large inflows of foreign aid and
remittances have had a damaging impact on the Ethiopian Real Exchange Rate
(RER). We improve the current empirical literature by: (i) compiling a
unique quarterly dataset to provide a larger sample size and enable the
modelling of important intra-year dynamics -- which should lead to better
model specifications; (ii) providing a new empirical approach (Unobserved
Components (UC)) to test the ‘Dutch disease’ hypothesis; and
(iii) using several cointegration approaches to further test the
robustness of our conclusions. Our results suggest that there are two main
long-run determinants of the RER in Ethiopia: trade openness is found to
be correlated with RER depreciations, while a positive shock to the terms
of trade tends to appreciate the RER. Foreign aid is not found to have a
statistically significant impact, while there is only weak evidence that
remittances are associated with RER appreciations. The lack of empirical
support for the ‘Dutch disease’ hypothesis suggests that
Ethiopia has been able to effectively manage large capital inflows, thus
avoiding major episodes of macroeconomic instability. We believe that most
African countries will therefore be able to absorb large inflows of
foreign capital without damaging their external competitiveness.
Journal: Applied Economics
Pages: 1075-1088
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613794
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613794
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:1075-1088
Template-Type: ReDIF-Article 1.0
Author-Name: Kian-Ping Lim
Author-X-Name-First: Kian-Ping
Author-X-Name-Last: Lim
Author-Name: Weiwei Luo
Author-X-Name-First: Weiwei
Author-X-Name-Last: Luo
Author-Name: Jae H. Kim
Author-X-Name-First: Jae H.
Author-X-Name-Last: Kim
Title: Are US stock index returns predictable? Evidence from automatic autocorrelation-based tests
Abstract:
This article re-examines the evidence of return predictability for three
major US stock indices using two recently developed data-driven tests,
namely the automatic portmanteau Box--Pierce test and the wild
bootstrapped automatic variance ratio test. In tracking the time variation
of return predictability via rolling estimation window, we find that those
periods with significant return autocorrelations can largely be associated
with major exogenous events. Theoretically, the documented time varying
nature of predictable patterns is consistent with the adaptive markets
hypothesis.
Journal: Applied Economics
Pages: 953-962
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613782
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613782
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:953-962
Template-Type: ReDIF-Article 1.0
Author-Name: Maryann O. Keating
Author-X-Name-First: Maryann O.
Author-X-Name-Last: Keating
Author-Name: Barry P. Keating
Author-X-Name-First: Barry P.
Author-X-Name-Last: Keating
Title: How trade and capital restrictions affect the probability of a balance of trade disturbance
Abstract:
Free market economists argue that national authorities avoid restrictions
on the free movement of goods, services and financial capital between
countries. Yet, countries continually choose to restrict the flow of
capital both into and out of the country. Why is this done? Is it done to
protect the domestic banking system, to control the domestic money supply,
to manage the exchange rate, to provide stability for internal markets or
to avoid wide swings in the availability of capital? Are these controls
effective in precluding wide swings in a country's international trade
balance? This article uses panel data in a logit model to analyse policy
choice with respect to an international trade and/or investment regime.
The goal is to identify choices effective in reducing the likelihood of a
severe Balance of Trade Disturbance (BTD) and determine if the appropriate
choice is related to per capita income (pci).
Journal: Applied Economics
Pages: 963-972
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613783
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613783
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:963-972
Template-Type: ReDIF-Article 1.0
Author-Name: Ton van Schaik
Author-X-Name-First: Ton
Author-X-Name-Last: van Schaik
Author-Name: Theo van de Klundert
Author-X-Name-First: Theo
Author-X-Name-Last: van de Klundert
Title: Employment protection legislation and catching-up
Abstract:
After World War II (WW II), productivity growth in Europe and Japan was
driven by catching up with the US. Institutions in Europe were different
too and well suited for economic growth through imitation and adaptation
of the technology to local circumstances. Catching up is, however, a self
defeating process. It ends when the technology frontier is attained or
when in case of conditional convergence institutions set a limit to the
process of catching up. Once this situation is reached, the existing
institutions may no longer be appropriate. Regression analysis on a panel
of 21 Organization for Economic Cooperation and Development countries
reveals that Employment Protection Legislations (EPL) had a positive
impact on productivity growth in the period of rapid convergence in the
sixties and seventies. However, from the eighties onwards, the total
effect of EPL on labour productivity growth was negative.
Journal: Applied Economics
Pages: 973-981
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613784
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613784
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:973-981
Template-Type: ReDIF-Article 1.0
Author-Name: Jang C. Jin
Author-X-Name-First: Jang C.
Author-X-Name-Last: Jin
Author-Name: Lawrence Jin
Author-X-Name-First: Lawrence
Author-X-Name-Last: Jin
Title: Research publications and economic growth: evidence from cross-country regressions
Abstract:
The effects of the quality of tertiary education on economic growth have
been examined across countries. Professors’ research publication is
used as a proxy for the quality of education at the university level.
Research outputs in basic science and engineering are found to have a
positive and significant effect on economic growth. Economics and business
research also have immediate growth effects although the effects are a bit
smaller. The results are, in general, consistent with the findings in the
growth literature. The convergence hypothesis is also supported by the
data.
Journal: Applied Economics
Pages: 983-990
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613785
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613785
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:983-990
Template-Type: ReDIF-Article 1.0
Author-Name: Aparna Mathur
Author-X-Name-First: Aparna
Author-X-Name-Last: Mathur
Author-Name: Kartikeya Singh
Author-X-Name-First: Kartikeya
Author-X-Name-Last: Singh
Title: Foreign direct investment, corruption and democracy
Abstract:
This article is the first to show that foreign investors care about
economic freedoms, rather than political freedoms, in making decisions
about where to locate capital. Hence more democratic countries may receive
less Foreign Direct Investment (FDI) flows if economic freedoms are not
guaranteed. One reason could be that democratizing developing economies
are often unable to push through the kind of economic reforms that
investors desire due to the presence of competing political interests.
This could potentially explain why countries like China and Singapore that
rank poorly on the democracy index but are relatively high on the property
rights index do well in terms of FDI inflows.
Journal: Applied Economics
Pages: 991-1002
Issue: 8
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613786
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613786
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Handle: RePEc:taf:applec:45:y:2013:i:8:p:991-1002
Template-Type: ReDIF-Article 1.0
Author-Name: Kent D. Messer
Author-X-Name-First: Kent D.
Author-X-Name-Last: Messer
Author-Name: Gregory L. Poe
Author-X-Name-First: Gregory L.
Author-X-Name-Last: Poe
Author-Name: William D. Schulze
Author-X-Name-First: William D.
Author-X-Name-Last: Schulze
Title: The value of private versus public risk and pure altruism: an experimental economics test
Abstract:
In 1996, Johannesson et al. published a paper
entitled ‘The Value of Private Safety versus the Value of Public
Safety’. Based on the preliminary evidence from a hypothetical
contingent valuation study for public and private safety, these authors
argue that consumers behave as ‘pure altruists’ who consider
the cost of a program that might be imposed on other voters when they
determine their maximum willingness-to-pay for public safety programs. The
authors conclude that further empirical research in this area is
warranted. This article presents a set of laboratory economics experiments
to test Johannesson et al.'s conjecture under
controlled conditions in which participants face an actual risk of
financial loss. The laboratory results extend those of Johannesson
et al.'s, providing strong evidence of pure altruism
in coercive settings involving public risks.
Journal: Applied Economics
Pages: 1089-1097
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.608645
File-URL: http://hdl.handle.net/10.1080/00036846.2011.608645
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1089-1097
Template-Type: ReDIF-Article 1.0
Author-Name: Solomon Tarfasa
Author-X-Name-First: Solomon
Author-X-Name-Last: Tarfasa
Author-Name: Roy Brouwer
Author-X-Name-First: Roy
Author-X-Name-Last: Brouwer
Title: Estimation of the public benefits of urban water supply improvements in Ethiopia: a choice experiment
Abstract:
Improving existing drinking water supply services in developing countries
depends crucially on available financial resources. Cost recovery rates of
these services are typically low, while demand for more reliable services
is high and rapidly growing. Most stated preference-based demand studies
in the developing world apply the contingent valuation method and focus on
rural areas. This study examines household Willingness to Pay (WTP) for
improved water supply services in a choice experiment in an urban area in
Ethiopia, a country with the lowest water supply coverage in Sub-Saharan
Africa. The design of the choice experiment allows estimation of the value
of both drinking water supply reliability and safety. The estimated
economic values can be used in policy appraisals of improved supply
investment decisions. Despite significant income constraints, households
are willing to pay up to 80% extra for improved levels of water supply
over and above their current water bill. Women and households living in
the poorest part of the city with the lowest service levels value the
improvement of water quality most. As expected, also averting behaviour
and expenditures play an important role.
Journal: Applied Economics
Pages: 1099-1108
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613793
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613793
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1099-1108
Template-Type: ReDIF-Article 1.0
Author-Name: H餩 Essid
Author-X-Name-First: H餩
Author-X-Name-Last: Essid
Author-Name: Pierre Ouellette
Author-X-Name-First: Pierre
Author-X-Name-Last: Ouellette
Author-Name: St鰨ane Vigeant
Author-X-Name-First: St鰨ane
Author-X-Name-Last: Vigeant
Title: Small is not that beautiful after all: measuring the scale efficiency of Tunisian high schools using a DEA-bootstrap method
Abstract:
Allocation of resources to schools in a centrally managed state system,
as the Tunisian one, should depend on the performance of the individual
institutions. The optimal size is of crucial importance in this context
and we need accurate measurement for sound policies. This article
discusses and implements a nonparametric statistical test procedure for
organization scale efficiency. This procedure allows us to test whether
the observed scale efficiency is optimal or not, using a smooth bootstrap
methodology for efficiency measures estimated using Data Envelopment
Analysis (DEA) methods. Because school principals do not control for the
size of their institution, i.e. the capital available at decision time,
the scale efficiency measures are defined so as to include quasi-fixed
inputs. The results show that scale efficiency measures are subject to
sampling variation. We also found that the schools that are scale
efficient are usually mid-sized and large schools, when size is measured
by the number of students. This contradicts the largely shared view among
decision makers that small schools were optimal.
Journal: Applied Economics
Pages: 1109-1120
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613795
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613795
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1109-1120
Template-Type: ReDIF-Article 1.0
Author-Name: Lijia Mo
Author-X-Name-First: Lijia
Author-X-Name-Last: Mo
Title: Impact of food safety information on US poultry demand
Abstract:
The impact of poultry product recall events on consumer demand in the US
was empirically tested for four major categories of poultry: broiler
(young chicken), eggs, turkey and other chicken (mature or nonbroiler
chicken). From 2000 to 2004, poultry Food Safety Inspection Service (FSIS)
recall events had a consistent positive impact on demand for turkey but no
significant impact on other types of poultry products. United States
Department of Agriculture (USDA) -- FSIS recall, as a complement to food
labelling, did not undermine poultry consumption but promoted turkey
demands. On the contrary, media recall undermined poultry demands.
Moreover, it demonstrated that turkey consumers were a special behaviour
group of poultry consumers.
Journal: Applied Economics
Pages: 1121-1131
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613796
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613796
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1121-1131
Template-Type: ReDIF-Article 1.0
Author-Name: J. Derbyshire
Author-X-Name-First: J.
Author-X-Name-Last: Derbyshire
Author-Name: B. Gardiner
Author-X-Name-First: B.
Author-X-Name-Last: Gardiner
Author-Name: S. Waights
Author-X-Name-First: S.
Author-X-Name-Last: Waights
Title: Estimating the capital stock for the NUTS2 regions of the EU27
Abstract:
To identify and target lagging regions policy makers require statistics
to be produced at regional level. In many instances it is not possible
simply to compare regional-level statistics produced by Member State
national statistical offices as there is variation in the methods and
assumptions used to produce them. Capital stock statistics at the national
level have been available for most countries of the EU27 for some time,
but statistics at the regional level are absent for almost all countries.
Where they do exist the methods used to produce them are not consistent
across countries. This article assesses the feasibility of producing
comparable estimates of the capital stock at NUTS2 regional level for the
EU27 and makes some initial estimates. The article outlines the method and
data employed, and the techniques used to fill missing values. The
approach is a Perpetual Inventory Method (PIM) based on that outlined in
the Organization for Economic Co-operation and Development (OECD) Manual
on capital estimation, and the data employed were taken from Eurostat or
other publicly available sources wherever possible. The article analyses
the robustness of the capital stock estimates produced, as well as their
impact on productivity analysis, and suggests how they can be improved in
future updates.
Journal: Applied Economics
Pages: 1133-1149
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613797
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613797
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1133-1149
Template-Type: ReDIF-Article 1.0
Author-Name: Sylvie Charlot
Author-X-Name-First: Sylvie
Author-X-Name-Last: Charlot
Author-Name: Sonia Paty
Author-X-Name-First: Sonia
Author-X-Name-Last: Paty
Author-Name: Michel Visalli
Author-X-Name-First: Michel
Author-X-Name-Last: Visalli
Title: Assessing the impact of local taxation on property prices: a spatial matching contribution
Abstract:
This article provides empirical evidence on the impact of local taxation
on property prices, controlling for the local public spending, using data
on property taxation and real estate transactions, over the period
1994--2004. Our empirical methodology pairs transactions in the same
spatial environments. Spatial differencing and Instrumental Variables (IV)
methodology allow us to compare sales across municipality boundaries and
to control for the potential endogeneity of local taxation and public
spending. Our results suggest that the local Property Tax (PT) rate has no
impact on property prices, while the amount of taxes paid appears to have
a negative effect on property price.
Journal: Applied Economics
Pages: 1151-1166
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613798
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613798
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1151-1166
Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Schwartz
Author-X-Name-First: Jeremy
Author-X-Name-Last: Schwartz
Title: Do temporary extensions to unemployment insurance benefits matter? The effects of the US standby extended benefit program
Abstract:
During the 2007--2010 economic downturn, the US temporarily increased the
duration of Unemployment Insurance (UI) by 73 weeks, higher than any prior
extension, raising concerns about UI's disincentive effects on job search.
This article examines the effect of temporary benefit extensions using a
Regression Discontinuity (RD) approach that addresses the endogeneity of
benefit extensions and labour market conditions. Using data from the 1991
recession, the results indicate that the Stand-by Extended Benefit (SEB)
program has a significant, although somewhat limited, impact on county
unemployment rates and the duration of unemployment. The results suggest
that the temporary nature of SEB benefit extensions may mitigate their
effect on search behaviour.
Journal: Applied Economics
Pages: 1167-1183
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.613799
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613799
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1167-1183
Template-Type: ReDIF-Article 1.0
Author-Name: R. Todd Jewell
Author-X-Name-First: R. Todd
Author-X-Name-Last: Jewell
Author-Name: Michael A. McPherson
Author-X-Name-First: Michael A.
Author-X-Name-Last: McPherson
Author-Name: Margie A. Tieslau
Author-X-Name-First: Margie A.
Author-X-Name-Last: Tieslau
Title: Whose fault is it? Assigning blame for grade inflation in higher education
Abstract:
This study attempts to isolate the potential sources of grade inflation
and to measure their relative importance. We incorporate existing models
of grade inflation into a model of grade inflation at the department
level. Our data comprise 1683 separate courses taught in 28 different
academic departments by 3176 distinct instructors at a large public
university over two decades. Our results suggest that incentives to
inflate grades vary according to characteristics of academic departments.
However, the vast majority (over 90%) of grade inflation observed in our
data is estimated to be a result of either university-level factors or
instructor-specific characteristics.
Journal: Applied Economics
Pages: 1185-1200
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.621884
File-URL: http://hdl.handle.net/10.1080/00036846.2011.621884
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1185-1200
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Pierluigi Conzo
Author-X-Name-First: Pierluigi
Author-X-Name-Last: Conzo
Title: Credit access and life satisfaction: evaluating the nonmonetary effects of micro finance
Abstract:
Microfinance Institutions (MFIs) are used to claim that their impact goes
beyond money since rescuing from exclusion uncollateralized poor borrowers
significantly affects their dignity, self-esteem, social recognition,
future economic perspectives and, through it, life satisfaction. Our
article aims to verify the validity of this claim by evaluating whether
access to microfinance loans has significant direct impact on life
satisfaction beyond its indirect impact via current income changes.
Empirical findings on a sample of poor borrowers in the suburbs of Buenos
Aires show that, after controlling for survivorship, selection and
interview bias, microfinance membership has a significant and positive
effect on life satisfaction.
Journal: Applied Economics
Pages: 1201-1217
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.624086
File-URL: http://hdl.handle.net/10.1080/00036846.2011.624086
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1201-1217
Template-Type: ReDIF-Article 1.0
Author-Name: Apostolos Tsiachristas†
Author-X-Name-First: Apostolos
Author-X-Name-Last: Tsiachristas†
Author-Name: Ren頇oudriaan
Author-X-Name-First: Ren頍
Author-X-Name-Last: Goudriaan
Author-Name: Wim Groot
Author-X-Name-First: Wim
Author-X-Name-Last: Groot
Title: The welfare effects of innovative pharmaceuticals: an international perspective from the Dutch experience
Abstract:
Policy discussions on new medicines are often focused on cost containment
rather than on the benefits they produce, such as health gains and cost
savings in other sectors. In this study, we identify systematic
differences in policies towards pharmaceuticals between countries and
calculate the welfare gains of 39 innovative pharmaceuticals introduced in
the Dutch market after 1997. Welfare gains are defined as the difference
between the value of a QALY gained by innovative pharmaceuticals and their
costs. The review shows that there are systematic differences among
pharmaceutical policies and regulations between countries. It is further
found that the welfare gains of pharmaceuticals are substantial and amount
to €77 per capita per year in the Netherlands. The welfare gains
could be higher if institutional barriers for an efficient utilization of
innovative pharmaceuticals are removed.
Journal: Applied Economics
Pages: 1219-1226
Issue: 9
Volume: 45
Year: 2013
Month: 3
X-DOI: 10.1080/00036846.2011.628296
File-URL: http://hdl.handle.net/10.1080/00036846.2011.628296
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Handle: RePEc:taf:applec:45:y:2013:i:9:p:1219-1226
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Abbott
Author-X-Name-First: Andrew
Author-X-Name-Last: Abbott
Author-Name: Glauco De Vita
Author-X-Name-First: Glauco
Author-X-Name-Last: De Vita
Title: Testing for long-run convergence across regional house prices in the UK: a pairwise approach
Abstract:
This article tests for stochastic convergence in UK regional house prices
using the recently developed pairwise approach. This approach allows for
unit root tests to be conducted on all
N(N − 1)/2 possible
pairs of house price differentials across N regions in
the UK, thus avoiding the need to choose a base region or alternative
national figure as the benchmark. Using mix adjusted house price data from
1973:Q4 to 2008:Q4, the main finding is that there is no evidence of long
run convergence among regional house prices or of an equilibrium
relationship towards which UK regional house prices have a tendency to
gravitate.
Journal: Applied Economics
Pages: 1227-1238
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.613800
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613800
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1227-1238
Template-Type: ReDIF-Article 1.0
Author-Name: Ashok Bardhan
Author-X-Name-First: Ashok
Author-X-Name-Last: Bardhan
Author-Name: Daniel L. Hicks
Author-X-Name-First: Daniel L.
Author-X-Name-Last: Hicks
Author-Name: Dwight Jaffee
Author-X-Name-First: Dwight
Author-X-Name-Last: Jaffee
Title: How responsive is higher education? The linkages between higher education and the labour market
Abstract:
Higher education is considered vital for developing a productive and
dynamic labour force to meet the demands of the global economy. How
effectively does the US higher education sector respond to labour market
signals? We match US postsecondary degree completions from 1984 to 2008
with occupational employment statistics and employ an Instrumental
Variable (IV) strategy to examine the supply response to changes in
occupation specific demand. The supply of educated workers appears weakly
responsive to short-term wage signals and moderately responsive to
long-term employment conditions. Analysis reveals a sizeable degree of
heterogeneity and lag in the responsiveness across specific
occupation--degree pairings. Failure to respond rapidly to changes in
labour demand may be one factor driving inequality in wages across
occupations and in the aggregate economy. We suggest some simple policy
measures to help increase the responsiveness of the higher education
sector, both in terms of the output of specific degree programmes and the
overall mix and composition of graduate completions.
Journal: Applied Economics
Pages: 1239-1256
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.613801
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613801
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1239-1256
Template-Type: ReDIF-Article 1.0
Author-Name: Jakob B. Madsen
Author-X-Name-First: Jakob B.
Author-X-Name-Last: Madsen
Author-Name: Ratbek Dzhumashev
Author-X-Name-First: Ratbek
Author-X-Name-Last: Dzhumashev
Author-Name: Hui Yao
Author-X-Name-First: Hui
Author-X-Name-Last: Yao
Title: Stock returns and economic growth
Abstract:
Theoretical considerations appear to support the conjecture that stock
returns are positively related to growth in the long run. However, the
empirical literature does not give unanimous support to the theory. Based
on a stochastic general equilibrium model it is argued that the long-run
relationship between stock returns and per capita income growth is
ambiguous and depends on output volatility. Using a century of data for 20
Organization for Economic Co-operation and Development (OECD) countries it
is shown that the relationship between stock returns and growth is
positive over the period 1916--1951, in which output volatility was
persistent. Outside this period no relationship between stock returns and
growth is found. These findings are consistent with the predictions of the
theoretical model.
Journal: Applied Economics
Pages: 1257-1271
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.613802
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613802
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1257-1271
Template-Type: ReDIF-Article 1.0
Author-Name: Wei-han Liu
Author-X-Name-First: Wei-han
Author-X-Name-Last: Liu
Title: Detecting structural breaks in tail behaviour -- from the perspective of fitting the generalized Pareto distribution
Abstract:
Extreme Value Theory (EVT) is heavily applied in modelling tail
behaviour. Previous literature uses the tail index to test for Structural
Breaks (SBs) in the tails. This study presents another more reliable
approach and relies on the outperformance of the Generalized Pareto
Distribution (GPD) in modelling tails. The transformed GPD is treated as a
classical Ordinary Least Square (OLS) regression and the generalized
M-fluctuation test (Zeileis, 2005, 2006) is applied because it is a
unified approach based on Maximum Likelihood (ML) scores (Andrews and
Ploberger, 1994), F-statistics (1989, 1992), and OLS
residuals (Ploberger and Kramer, 1992). The outcomes indicate that there
are multiple SBs not only in all of the three exchange return series
considered (UK Pound, Japanese Yen and New Taiwan Dollar, all versus US
Dollar) but also GPD parameter estimation at extreme quantile levels.
Based on these empirical analyses, it is advisable that EVT should be used
with caution at extreme quantile levels.
Journal: Applied Economics
Pages: 1273-1286
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.613803
File-URL: http://hdl.handle.net/10.1080/00036846.2011.613803
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1273-1286
Template-Type: ReDIF-Article 1.0
Author-Name: Mira Farka
Author-X-Name-First: Mira
Author-X-Name-Last: Farka
Author-Name: Adrian R. Fleissig
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Fleissig
Title: The impact of FOMC statements on the volatility of asset prices
Abstract:
This article examines the impact of Federal Open Market Committee (FOMC)
statements on asset prices. Statements are found to have a much more
pronounced impact on the volatility of asset prices than interest rate
surprises. They influence primarily stock returns, intermediate and
long-term yields, whereas short-term rates are driven both by statements
and by interest rate surprises. We also find that the regime shift of May
1999 has improved the effectiveness of monetary policy, as reflected in an
overall reduction in market volatility during the most recent regime. In
addition, markets are equally well-prepared for the upcoming rate decision
in both regimes, but the process of adjustment depends on whether a
statement was issued in the old regime or not. When a statement is issued,
price adjustments are very similar across both periods, whereas if no
statement is issued then the rate of adjustment towards the new value is
more gradual and occurs throughout the entire intermeeting period.
Journal: Applied Economics
Pages: 1287-1301
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.615732
File-URL: http://hdl.handle.net/10.1080/00036846.2011.615732
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1287-1301
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Vidal-Meliá
Author-X-Name-First: Carlos
Author-X-Name-Last: Vidal-Meliá
Author-Name: Mar𨁤el Carmen Boado-Penas
Author-X-Name-First: Mar𨀍
Author-X-Name-Last: del Carmen Boado-Penas
Title: Compiling the actuarial balance for pay-as-you-go pension systems. Is it better to use the hidden asset or the contribution asset?
Abstract:
The aim of this article is twofold: to establish the connection between
the ‘Contribution Asset’ (CA) and the ‘Hidden
Asset’ (HA) and to determine whether using either of them to
compile the Actuarial Balance (AB) sheet in the Pay-As-You-Go (PAYG)
pension system will provide a reliable solvency indicator. With these aims
in mind, we develop a model based on those first put forward by Settergren
and Mikula (2005) and Boado-Penas et al. (2008) to
obtain the analytical properties of the CA and to confirm its soundness as
a measure of the assets of a PAYG scheme. Our model also enables us to
explore whether, and to what extent, the HA can be considered a second
alternative measure of the assets for PAYG schemes. The main theoretical
finding is that, despite their very different natures, the HA and the CA
may nearly coincide at the limit when the interest rate of the financial
market approaches the growth of the covered wage bill from above, but the
HA supplies a solvency indicator which is not always consistent with the
system's financial health.
Journal: Applied Economics
Pages: 1303-1320
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.615733
File-URL: http://hdl.handle.net/10.1080/00036846.2011.615733
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1303-1320
Template-Type: ReDIF-Article 1.0
Author-Name: Peter L. Jones
Author-X-Name-First: Peter L.
Author-X-Name-Last: Jones
Title: The determinants of aggregate creditors’ voluntary liquidations
Abstract:
This article investigates the determinants of Creditors’ Voluntary
Liquidations (CVLs), an area of research that has received comparatively
scant attention in the literature despite the fact that, at least in the
UK, this form of insolvency has consistently comprised the majority of
company failures. It develops an Equilibrium Correction Model (ECM) to
explain variations in the aggregate number of CVLs in England and Wales
between 1963 and 1995. This is then subjected to out-of-sample testing
over the subsequent 10-year period. The results indicate that in both the
short-run and the long-run, changes in the level of liquidations can be
explained by two main explanatory variables namely: the nominal after-tax
cost of borrowing and changes in the overall level of economic activity.
In addition, confirmatory evidence is provided for the dampening effect of
the 1986 Insolvency Act on the number of liquidations. The model retains
its forecasting accuracy in the out-of-sample period although there is
possibly some preliminary evidence of a further mitigating effect
associated with the Enterprise Act 2002.
Journal: Applied Economics
Pages: 1321-1330
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617695
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617695
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1321-1330
Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Sin Lee
Author-X-Name-First: Jen-Sin
Author-X-Name-Last: Lee
Author-Name: Pi-Hsia Yen
Author-X-Name-First: Pi-Hsia
Author-X-Name-Last: Yen
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: Market states and disposition effect: evidence from Taiwan mutual fund investors
Abstract:
We study the disposition effect across market states in the context of
mutual fund investors in Taiwan. Using mutual fund data at the fund and
individual levels during July 2001 to October 2008, we find that the
disposition effect varies across market states. Our results suggest that
investors redeem their mutual fund units more under a bear market than a
bull market when they have extreme capital losses. When investors have
moderate capital gains, they are less active in redeeming their mutual
fund units under a bull market relative to a bear market. Under a neutral
market, investors actively redeem mutual fund units in both winner and
loser mutual funds except when they have extreme capital losses. Thus,
disposition effect is not uniform; it varies by market condition. In
addition, the disposition effect phenomenon also exists for Taiwan mutual
fund investors as well. Our findings are robust to aggregate and
individual investor levels.
Journal: Applied Economics
Pages: 1331-1342
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617696
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617696
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1331-1342
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Svensson
Author-X-Name-First: Roger
Author-X-Name-Last: Svensson
Title: Publicly-funded R&D programs and survival of patents
Abstract:
I apply a survival model to a detailed data set of Swedish patents to
estimate how different financing factors affect the likelihood of patent
renewal. Since the owners know more about the patents than potential
external financiers, there is a problem of asymmetric information. To
overcome this, Sweden has for a long time relied on government support
rather than Private Venture Capital (PVC). In the empirical analysis, two
kinds of government loans are unbundled. The empirical results show that
patents which have received soft government loans in the R&D-phase have a
higher probability of expiring than patents without such financing. But
patents that have received more market-oriented government loans during
the commercialization phase are renewed for as long as other
commercialized patents. This finding suggests that rather than bad choices
of projects, it is the nature of the contract terms that explains the low
renewal of some patents with government financing.
Journal: Applied Economics
Pages: 1343-1358
Issue: 10
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617700
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617700
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:10:p:1343-1358
Template-Type: ReDIF-Article 1.0
Author-Name: Michiel van Leuvensteijn
Author-X-Name-First: Michiel
Author-X-Name-Last: van Leuvensteijn
Author-Name: Christoffer Kok Sørensen
Author-X-Name-First: Christoffer Kok
Author-X-Name-Last: Sørensen
Author-Name: Jacob A. Bikker
Author-X-Name-First: Jacob A.
Author-X-Name-Last: Bikker
Author-Name: Adrian A.R.J.M. van Rixtel
Author-X-Name-First: Adrian A.R.J.M.
Author-X-Name-Last: van Rixtel
Title: Impact of bank competition on the interest rate pass-through in the euro area
Abstract:
This article analyses the impact of loan market competition on the
interest rates applied by euro area banks to loans during the period
1994--2004, using a novel measure of competition called the Boone
indicator. We find evidence that stronger competition implies
significantly lower spreads between bank and market interest rates for
most loan market products, in line with expectations. This result implies
that stronger competition causes both lower bank interest rates and a
stronger pass-through of market rate changes into bank rates. Evidence of
the latter is also presented by our Error Correction Model (ECM) for bank
rates. Further, banks compensate income losses from increased loan market
competition by offering lower deposit rates. Our findings with respect to
the loan market rates have important monetary policy implications, as they
suggest that measures to promote competition in the European banking
sector are likely to render the monetary policy transmission mechanism
more effective.
Journal: Applied Economics
Pages: 1359-1380
Issue: 11
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617697
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617697
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Handle: RePEc:taf:applec:45:y:2013:i:11:p:1359-1380
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Adams
Author-X-Name-First: Scott
Author-X-Name-Last: Adams
Author-Name: Chad Cotti
Author-X-Name-First: Chad
Author-X-Name-Last: Cotti
Author-Name: Daniel Fuhrmann
Author-X-Name-First: Daniel
Author-X-Name-Last: Fuhrmann
Title: The short-term impact of smoke-free workplace laws on fatal heart attacks
Abstract:
Using data from across the US, we find that as the number of communities
adopting smoking bans in workplaces in a state increases or an entire
state goes smoke-free, there are significant reductions in fatal
Myocardial Infarctions (MI) among those aged 25--54. The result proves
durable, as we subject it to an extensive battery of robustness checks.
These results are smaller in magnitude, however, than published case
studies analysing the experiences of individual communities passing bans.
Journal: Applied Economics
Pages: 1381-1393
Issue: 11
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617698
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617698
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Handle: RePEc:taf:applec:45:y:2013:i:11:p:1381-1393
Template-Type: ReDIF-Article 1.0
Author-Name: Colin T. Bowers
Author-X-Name-First: Colin T.
Author-X-Name-Last: Bowers
Author-Name: Chris Heaton
Author-X-Name-First: Chris
Author-X-Name-Last: Heaton
Title: What does high-dimensional factor analysis tell us about risk factors in the Australian stock market?
Abstract:
Estimates of the cost of equity are often sensitive to the specification
of the linear factor model used in their construction. In this article, we
use techniques developed for high-dimensional factor models to consider
the identity of systematic risk factors in the Australian equities market.
Our results support the use of neither the Capital Asset Pricing Model
(CAPM) nor the Fama and French model, although they provide an explanation
for the empirical performance of these models. Many other model
specifications are also rejected. We find that a single-factor model with
an equal-weighted market index is the best model for estimating the cost
of equity in the Australian context.
Journal: Applied Economics
Pages: 1395-1404
Issue: 11
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617699
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617699
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Handle: RePEc:taf:applec:45:y:2013:i:11:p:1395-1404
Template-Type: ReDIF-Article 1.0
Author-Name: Tieli Li
Author-X-Name-First: Tieli
Author-X-Name-Last: Li
Author-Name: Miao Fu
Author-X-Name-First: Miao
Author-X-Name-Last: Fu
Author-Name: Xiaolan Fu
Author-X-Name-First: Xiaolan
Author-X-Name-Last: Fu
Title: Regional technology development path in an open developing economy: evidence from China
Abstract:
This article explores the paths of regional technology development in a
large open developing economy. Findings from the research based on Chinese
data suggest a differentiated approach to regional technology development.
In technologically advanced regions, indigenous R&D plays a more important
role than learning-by-doing while in backward regions the latter becomes
more important. Interregional technology transfer is found to have a more
significant impact on regional technology development than Foreign Direct
Investment (FDI) and its effect intensifies when the technology level of
the recipient region is close to the technological frontier. R&D plays a
key role in both the assimilation of foreign technologies in advanced
regions and the assimilation of interregional technology transfer;
learning-by-doing only affects the latter.
Journal: Applied Economics
Pages: 1405-1418
Issue: 11
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617701
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617701
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Handle: RePEc:taf:applec:45:y:2013:i:11:p:1405-1418
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Boitani
Author-X-Name-First: Andrea
Author-X-Name-Last: Boitani
Author-Name: Marcella Nicolini
Author-X-Name-First: Marcella
Author-X-Name-Last: Nicolini
Author-Name: Carlo Scarpa
Author-X-Name-First: Carlo
Author-X-Name-Last: Scarpa
Title: Do competition and ownership matter? Evidence from local public transport in Europe
Abstract:
This article investigates how the ownership and the selection procedure
of firms operating in the Local Public Transport (LPT) sector affect their
productivity. In order to compare different institutional regimes, we
carry out a comparative analysis of 77 companies operating in large
European cities over the period 1997 to 2006. This allows us to consider
firms selected either through competitive tendering or negotiated
procedures. Retrieving the residuals we obtain a measure of Total Factor
Productivity (TFP), which we regress on firm and city characteristics. We
find that totally or partially public firms display lower productivity
than privately owned firms. Moreover, firms selected through competitive
tendering display higher TFP.
Journal: Applied Economics
Pages: 1419-1434
Issue: 11
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617702
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617702
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Handle: RePEc:taf:applec:45:y:2013:i:11:p:1419-1434
Template-Type: ReDIF-Article 1.0
Author-Name: Vadym Volosovych
Author-X-Name-First: Vadym
Author-X-Name-Last: Volosovych
Title: Risk sharing from international factor income: explaining cross-country differences
Abstract:
Access to world capital markets and net investment income flows between
countries help protect national income from country-specific output
shocks. I empirically study what factors explain cross-country differences
in the extent of risk sharing from international factor income. An index
of investor protection is the leading causal variable for the estimated
amount of risk sharing over the 1985 to 2004 period. Improving investor
protection in Russia to Denmark's level implies five times larger risk
sharing compared to the sample average. These results indicate one
possible way to reap large potential benefits from international risk
sharing.
Journal: Applied Economics
Pages: 1435-1459
Issue: 11
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617703
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617703
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Handle: RePEc:taf:applec:45:y:2013:i:11:p:1435-1459
Template-Type: ReDIF-Article 1.0
Author-Name: Johannes Sauer
Author-X-Name-First: Johannes
Author-X-Name-Last: Sauer
Author-Name: Catherine J. Morrison Paul
Author-X-Name-First: Catherine J. Morrison
Author-X-Name-Last: Paul
Title: The empirical identification of heterogeneous technologies and technical change
Abstract:
When different technologies are present in an industry, we assume that a
homogeneous technology will lead to misleading implications about
technical change and inefficient policy recommendations. In this article a
latent class modelling approach and flexible estimation of the production
structure is used to distinguish different technologies for a
representative sample of EU dairy producers, as an industry exhibiting
significant structural changes and differences in production systems in
the past decades. The model uses a transformation function to recognize
multiple outputs; separate technological classes based on multiple
characteristics, a flexible generalized linear functional form, a variety
of inputs and random effects to capture firm heterogeneity; and measures
of first- and second-order elasticities to represent technical change and
biases. We find that if multiple production frontiers are embodied in the
data, different firms exhibit different output or input intensities and
changes associated with different production systems that are veiled by
overall (average) measures. In particular, we find that farms that are
larger and more capital intensive experience greater productivity,
technical progress and labour savings, and enjoy scale economies that have
increased over time.
Journal: Applied Economics
Pages: 1461-1479
Issue: 11
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.617704
File-URL: http://hdl.handle.net/10.1080/00036846.2011.617704
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Handle: RePEc:taf:applec:45:y:2013:i:11:p:1461-1479
Template-Type: ReDIF-Article 1.0
Author-Name: James A. Yunker
Author-X-Name-First: James A.
Author-X-Name-Last: Yunker
Author-Name: Alice Melkumian
Author-X-Name-First: Alice
Author-X-Name-Last: Melkumian
Title: Optimal diversification and risk-taking: a theoretical and empirical analysis
Abstract:
Among the justifications for capital property income received by private
households is that it is a ‘return to risk-taking’. However,
portfolio diversification provides an obvious means toward the reduction
of risk. Moreover, it is widely believed that the wealthier the household,
the more diversification it practices: the larger tends to be the
proportion of its total portfolio allocated to publicly traded stock, and
the larger tends to be the number of individual stock issues included in
its portfolio. Using a simple ‘homogeneous securities’
model, explicit functional forms are obtained for both the optimal
proportion of the portfolio allocated to stocks, and the optimal number of
individual stock issues in the portfolio. Empirical evaluation of these
theoretical results, using a dataset derived from the 2004 Survey of
Consumer Finances (SCF), lends substantial support to the model. Applying
these empirical results, it is found that as household capital wealth
increases, expected capital income increases while simultaneously a
reasonable risk indicator (the probability of incurring a negative return
on the capital portfolio) decreases owing to the higher level of portfolio
diversification. This indication casts significant doubt on the
‘return to risk-taking’ justification for capital property
income received by wealthy private households.
Journal: Applied Economics
Pages: 1481-1492
Issue: 11
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.619498
File-URL: http://hdl.handle.net/10.1080/00036846.2011.619498
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Handle: RePEc:taf:applec:45:y:2013:i:11:p:1481-1492
Template-Type: ReDIF-Article 1.0
Author-Name: Martina Celidoni
Author-X-Name-First: Martina
Author-X-Name-Last: Celidoni
Title: Vulnerability to poverty: an empirical comparison of alternative measures
Abstract:
This article compares empirically the several measures of individual
vulnerability to poverty proposed in the literature, in order to
understand which is the best signal of poverty that can be used for policy
purposes. To this aim, the Receiver Operating Characteristic (ROC) curve,
the Pearson and Spearman correlation coefficients are used as precision
criteria. The results show that two groups of indexes can be identified,
high and low performers, and, among the former, that proposed by Dutta
et al. (2011) is the most precise.
Journal: Applied Economics
Pages: 1493-1506
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.624271
File-URL: http://hdl.handle.net/10.1080/00036846.2011.624271
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1493-1506
Template-Type: ReDIF-Article 1.0
Author-Name: Gianni Amisano
Author-X-Name-First: Gianni
Author-X-Name-Last: Amisano
Author-Name: Maria Letizia Giorgetti
Author-X-Name-First: Maria Letizia
Author-X-Name-Last: Giorgetti
Title: Diversification by entry into a new submarket?
Abstract:
Using a dataset on the subsector and geographical segmentation of 208
Pharmaceutical companies, a Bayesian panel probit is used to analyze the
role of state dependency, size and achieved diversification in affecting
entry decision. We properly account for unobservable heterogeneity in a
context with nonstrictly exogenous regressors. We find that achieved
diversification, measured by the number of submarkets already entered
affects negatively the probability of entry. Beside some country-specific
exceptions, size and the lagged dependent variable do not seem to be
relevant.
Journal: Applied Economics
Pages: 1507-1518
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.628297
File-URL: http://hdl.handle.net/10.1080/00036846.2011.628297
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1507-1518
Template-Type: ReDIF-Article 1.0
Author-Name: P. Ormerod
Author-X-Name-First: P.
Author-X-Name-Last: Ormerod
Author-Name: B. Rosewell
Author-X-Name-First: B.
Author-X-Name-Last: Rosewell
Author-Name: P. Phelps
Author-X-Name-First: P.
Author-X-Name-Last: Phelps
Title: Inflation/unemployment regimes and the instability of the Phillips curve
Abstract:
Using the statistical technique of fuzzy clustering, regimes of inflation
and unemployment are explored for the United States, the United Kingdom
and Germany between 1871 and 2009. We identify for each country three
distinct regimes in inflation/unemployment space. Similarities exist
across countries in both the regimes and the timings of the transitions
between regimes. However, the typical rates of inflation and unemployment
experienced in the regimes are substantially different. Further, even
within a given regime, the results from the cluster analysis reveal
persistent fluctuations in the degree of attachment to that regime of
inflation/unemployment observations over time. The economic implications
of this are that, first, the inflation/unemployment relationship or
Phillips curve experiences from time to time major shifts. Second, that it
is also inherently unstable even in the short run. It is likely that the
factors which govern the inflation/unemployment trade-off are so
multi-dimensional that it is hard to identify periods of short-run
Phillips curves which can be assigned to particular historical periods
with any degree of accuracy or predictability. The analysis shows that
reliance on a trade-off between inflation and unemployment for policy
purposes is misplaced even in the short run.
Journal: Applied Economics
Pages: 1519-1531
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.628299
File-URL: http://hdl.handle.net/10.1080/00036846.2011.628299
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1519-1531
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Fernando Zanella
Author-X-Name-First: Fernando
Author-X-Name-Last: Zanella
Title: Testing for the government's intertemporal budget restriction in Brazil during 1823--1889
Abstract:
This article tests whether the government's intertemporal budget
restriction was fulfilled during the Brazilian imperial period
(1823--1889). To accomplish this, newly developed tests for cointegration
with unknown structural breaks are applied. It is found that government
spending and government revenue are cointegrated if the effect of two
unknown structural breaks is taken into account. The estimated parameter
vector reveals that the one-by-one relationship that is required for
solvency does not prevail for the sub-periods before and after the first
break, however it prevails for the sub-period after the second break. We
interpret these findings as empirical support for the long-run government
solvency in Brazil at the end of the imperial period.
Journal: Applied Economics
Pages: 1533-1540
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.629984
File-URL: http://hdl.handle.net/10.1080/00036846.2011.629984
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1533-1540
Template-Type: ReDIF-Article 1.0
Author-Name: R. Rosillo
Author-X-Name-First: R.
Author-X-Name-Last: Rosillo
Author-Name: D. de la Fuente
Author-X-Name-First: D.
Author-X-Name-Last: de la Fuente
Author-Name: J. A. L. Brugos
Author-X-Name-First: J. A. L.
Author-X-Name-Last: Brugos
Title: Technical analysis and the Spanish stock exchange: testing the RSI, MACD, momentum and stochastic rules using Spanish market companies
Abstract:
The aim of this research is to examine the result of the application of
the indicators Relative Strength Index (RSI), Moving Average Convergence
Divergence (MACD), Momentum and Stochastic in different companies of the
Spanish continuous market. By using these indicators, it is intended to
give purchase and sale recommendations to small investors. The generation
of great capital gains depends on the type of the stock exchange company
and the indicator which is being used. In addition, this research solves
the problems in case of ambiguity, in the indicators, for the traders.
Journal: Applied Economics
Pages: 1541-1550
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.631894
File-URL: http://hdl.handle.net/10.1080/00036846.2011.631894
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1541-1550
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Lamo
Author-X-Name-First: Ana
Author-X-Name-Last: Lamo
Author-Name: Javier J. P鲥z
Author-X-Name-First: Javier J.
Author-X-Name-Last: P鲥z
Author-Name: Ludger Schuknecht
Author-X-Name-First: Ludger
Author-X-Name-Last: Schuknecht
Title: The cyclicality of consumption, wages and employment of the public sector in the euro area
Abstract:
This study empirically examines the business cycle behaviour of public
consumption and its main components, the public wage bill (including its
breakdown into compensation per employee and public employment) and
intermediate consumption, in the euro area aggregate, euro area countries
and a group of selected non-euro area Organization for Economic
Co-operation and Development (OECD) countries (Denmark, Sweden, the UK,
Japan and the US). It looks across a large number of variables and
methods, using annual data from 1960 to 2005. It finds robust evidence
supporting that public consumption, wages and employment co-move with the
business cycle in a pro-cyclical manner with 1--2 year lags, notably for
the euro area aggregate and euro area countries. The findings reflect
mainly the correlation between cyclical developments, but also point to an
important role of pro-cyclical discretionary fiscal policies.
Journal: Applied Economics
Pages: 1551-1569
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.631895
File-URL: http://hdl.handle.net/10.1080/00036846.2011.631895
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1551-1569
Template-Type: ReDIF-Article 1.0
Author-Name: Håkan Eggert
Author-X-Name-First: Håkan
Author-X-Name-Last: Eggert
Author-Name: Viktoria Kahui
Author-X-Name-First: Viktoria
Author-X-Name-Last: Kahui
Title: Reference-dependent behaviour of paua (abalone) divers in New Zealand
Abstract:
We study dynamic labour supply using data on paua (abalone) divers in New
Zealand. The divers face stable, flat prices per kilogram after each
catch, but experience transitory wage changes due to varying weather and
water conditions, and are free to vary their daily working hours and
display an intermittent working pattern. We find nonlinear wage
elasticities, rejecting the standard neo-classical prediction that these
divers should work long hours during days when wages are high and quit
early during days when hourly wages are low. We explore potentially
distorting factors, but find little evidence. Applying Kőszegi and
Rabin's (2006) theory where workers have both income and hours targets
could explain our result. In particular, our divers appear to be primarily
guided by the hours target.
Journal: Applied Economics
Pages: 1571-1582
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.631896
File-URL: http://hdl.handle.net/10.1080/00036846.2011.631896
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1571-1582
Template-Type: ReDIF-Article 1.0
Author-Name: N. Zubanov
Author-X-Name-First: N.
Author-X-Name-Last: Zubanov
Author-Name: H. D. Webbink
Author-X-Name-First: H. D.
Author-X-Name-Last: Webbink
Author-Name: N. G. Martin
Author-X-Name-First: N. G.
Author-X-Name-Last: Martin
Title: The effect of schooling on problem drinking: evidence from Australian twins
Abstract:
We relate differences in problem drinking symptoms within pairs of
identical twins to their respective differences in years of schooling.
Isolating in this way the influences of family background and genes, we
find that an increase in schooling attainment results in a significantly
lower incidence of problem drinking for men. Thus, an extra year of
schooling reduces the number of health problems caused by drinking by
0.14, and the probability of developing symptoms of Alcohol Dependence
(AD) by 0.06. This negative link is robust to a variety of modifications
to the identifying assumptions underlying our statistical analysis.
Socio-economic implications of our findings are discussed.
Journal: Applied Economics
Pages: 1583-1599
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.631897
File-URL: http://hdl.handle.net/10.1080/00036846.2011.631897
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1583-1599
Template-Type: ReDIF-Article 1.0
Author-Name: Matthieu Bussière
Author-X-Name-First: Matthieu
Author-X-Name-Last: Bussière
Title: Balance of payment crises in emerging markets: how early were the ‘early’ warning signals?
Abstract:
Although many papers have already proposed empirical models of currency
crises, the timing of such crises has received relatively little attention
so far. Most papers use indeed a static specification and impose the same
lag structure across all explanatory variables. This, by construction,
prevents from specifically timing the crisis signals sent by the leading
indicators. The objective here is to fill this gap by considering a set of
dynamic discrete choice models. The first contribution is to identify how
early in advance each explanatory variable sends a warning signal. Some
indicators are found to signal a crisis in the very short run while others
signal a crisis at more distant horizons. The second contribution is to
show that state dependence matters, albeit mostly in the short run. The
results have important implications for crisis prevention in terms of the
timeliness and usefulness of the envisaged policy response.
Journal: Applied Economics
Pages: 1601-1623
Issue: 12
Volume: 45
Year: 2013
Month: 4
X-DOI: 10.1080/00036846.2011.633891
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633891
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:12:p:1601-1623
Template-Type: ReDIF-Article 1.0
Author-Name: Alexandre Dmitriev
Author-X-Name-First: Alexandre
Author-X-Name-Last: Dmitriev
Title: Institutions and growth: evidence from estimation methods robust to weak instruments
Abstract:
This article focuses on the empirical approach proposed by Hall and Jones
(1999) to estimate the effect of what they call ‘social
infrastructure’ on productivity across countries. We consider the
issue of weak identification in their linear instrumental variables model.
The evidence obtained from partially robust estimators, such as the
k-class and jackknife estimators, is interpreted on the
basis of Monte Carlo studies. Our findings suggest that using certain
k-class estimators allows exclusive reliance on the
linguistic variables to instrument for institutional quality despite their
low correlation with the endogenous regressor in question.
Journal: Applied Economics
Pages: 1625-1635
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.633892
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633892
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1625-1635
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Title: Evaluating Federal Reserve predictions of growth in consumer spending
Abstract:
This study shows that Federal Reserve forecasts of growth in both total
consumption and durable spending are generally rational under asymmetric
loss, and the forecasts of growth in nondurable (services) spending, while
unbiased (biased), fail to be rational. Yet, these forecasts are all
directionally accurate. The forecasts of growth in total consumption,
durable and services spending are more (less) accurate in predicting the
downward (upward) moves and are thus of value when policymakers assign
more (less) cost to incorrect downward (upward) predictions. The forecasts
of growth in nondurable spending are equally accurate in predicting the
downward and upward moves and are thus of value when policymakers assign
similar cost to both incorrect downward and upward predictions. Utilizing
survey data to measure the private forecasts, we further provide partial
support for the asymmetric information hypothesis that the Federal Reserve
has useful information about the state of the economy that is not known by
the public.
Journal: Applied Economics
Pages: 1637-1646
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.633893
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633893
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1637-1646
Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Aguayo-T鬬ez
Author-X-Name-First: Ernesto
Author-X-Name-Last: Aguayo-T鬬ez
Author-Name: Jos頍art-Navarro
Author-X-Name-First: Jos頍
Author-X-Name-Last: Mart-Navarro
Title: Internal and international migration in Mexico: 1995--2000
Abstract:
Using micro data from Mexico and US 2000 population censuses and
following a multi-choice variant of Roy's (1951) model, this article pools
into one model the determinants of internal and international migration in
M鸩co, while paying explicit attention to the potential problem of
self-selection. The results reveal that ignoring multiple destinations in
the migration decision might lead to erroneous inferences about the
determinants of migration and the type of selection. After controlling for
wage differences, the results suggest that single adult men with low
schooling levels tend to migrate to the US while married women and men
with higher levels of schooling tend to migrate within Mexico. We also
found that there are strong differences between domestic and international
social networks.
Journal: Applied Economics
Pages: 1647-1661
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.633894
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633894
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1647-1661
Template-Type: ReDIF-Article 1.0
Author-Name: S. P. Thi颡ut
Author-X-Name-First: S. P.
Author-X-Name-Last: Thi颡ut
Author-Name: T. Barnay
Author-X-Name-First: T.
Author-X-Name-Last: Barnay
Author-Name: B. Ventelou
Author-X-Name-First: B.
Author-X-Name-Last: Ventelou
Title: Ageing, chronic conditions and the evolution of future drugs expenditure: a five-year micro-simulation from 2004 to 2029
Abstract:
The healthy ageing assumptions may lead to substantial changes in paths
of aggregate health care expenditure, notably catastrophic expenditure of
people at the end of the life. But clear assessments of involved amounts
are not available when we specifically consider ambulatory care (as drug
expenditure) generally offered to chronically-ill people. We estimate the
effects of epidemiological and life expectancy changes on French health
expenditure until 2029 by applying a Markovian micro-simulation model from
a nationally representative database. The originality of these simulations
holds in using an aggregate indicator of morbidity--mortality, capturing
vital risk and making it possible to adapt the quantification of life
expectancies by taking into account the presence of severe chronic
pathologies. We forecast future national drugs expenditure, under
different epidemiological scenarios of chronic morbidity: trend
scenario, healthy ageing scenario and medical progress scenario.
For the population aged 25+, results predict an increase in reimbursable
drug expenditure of between 1.1% and 1.8% (annual growth rate),
attributable solely to the ageing population and changes in health status.
Journal: Applied Economics
Pages: 1663-1672
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.633895
File-URL: http://hdl.handle.net/10.1080/00036846.2011.633895
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1663-1672
Template-Type: ReDIF-Article 1.0
Author-Name: Karolien De Bruyne
Author-X-Name-First: Karolien
Author-X-Name-Last: De Bruyne
Author-Name: Jan Van Hove
Author-X-Name-First: Jan
Author-X-Name-Last: Van Hove
Title: Explaining the spatial variation in housing prices: an economic geography approach
Abstract:
Housing prices vary geographically, even between neighbouring
municipalities. Local differences can be attributed to differences in
socio-economic variables and real estate characteristics. This article
argues that one should additionally take into account the geographical
location of municipalities. In particular, housing prices are affected by
distance and travel-time to important economic centres offering jobs and
extensive services. Following the economic geography literature, we
develop a model showing the explicit impact of geographical barriers on
housing prices. As such, we distinguish ourselves from the existing
literature on the dynamics of housing prices since geographical elements
are fairly constant over time. We estimate our model on municipality-level
housing prices for all 589 Belgian municipalities in 2001. We also
differentiate between the two main regions of Belgium (Flanders and
Wallonia). Our empirical results confirm expectations. Geographical
barriers have significantly negative effects on housing prices.
Nevertheless we find important differences between the Belgian regions and
the means of transport considered.
Journal: Applied Economics
Pages: 1673-1689
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.636021
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636021
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1673-1689
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Bryan Schmidt
Author-X-Name-First: Martin Bryan
Author-X-Name-Last: Schmidt
Title: Voting with the crowd: do single issues drive partisanship?
Abstract:
We examine whether survey data supports the anecdotal evidence which
suggests that group association impacts the individual's stated beliefs.
Specifically, we examine whether a rise in the relative importance of a
single issue, i.e. national security, blurs the traditional importance of
socio-economic variables in determining an electorate's political party
association. Further, we examine whether such blurring occurs across the
responses to questions outside the scope of this single issue. We find
that in the aftermath of the terrorist attacks on 11 September 2001, the
relative importance of national security rose in the US electorate and
reduced the relative importance of socio-economic variables in determining
the electorate's political association for both security and nonsecurity
issues.
Journal: Applied Economics
Pages: 1691-1700
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.636022
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636022
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1691-1700
Template-Type: ReDIF-Article 1.0
Author-Name: Randall P. Ellis
Author-X-Name-First: Randall P.
Author-X-Name-Last: Ellis
Author-Name: Shenyi Jiang
Author-X-Name-First: Shenyi
Author-X-Name-Last: Jiang
Author-Name: Tzu-Chun Kuo
Author-X-Name-First: Tzu-Chun
Author-X-Name-Last: Kuo
Title: Does service-level spending show evidence of selection across health plan types?
Abstract:
We provide an explanation for the widespread finding that capitated
managed care plans attract comparatively healthy, low cost enrollees
relative to traditional unmanaged plans. Using disaggregated commercial
insurance claims from the Thomson-Reuters MarketScan database, we show
that managed care plans spend proportionally less on those types of
services that are predicted to be more profitable to ration tightly using
a selection index developed by Ellis and McGuire that captures the
derivative of profits with respect to reduced spending on disaggregated
services. Conventional diagnosis-based risk adjusted premiums reduce
selection incentives by about 50% relative to premiums that are not
risk-adjusted.
Journal: Applied Economics
Pages: 1701-1712
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.636023
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636023
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1701-1712
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Aaron Morey
Author-X-Name-First: Aaron
Author-X-Name-Last: Morey
Title: Regulator flexibility and the administrative allocation licensing of 3G spectrum
Abstract:
Globally, most nations assign radio spectrum to provide 3G mobile
services during the period 1999--2007. While there is consensus among most
economists that auctions are the preferred assignment mechanism, the
assignment mode is split, more or less, equally (in terms of the number of
licences issued) between administrative allocations and auctions. With
auction procedures tending to raise more revenue for governments
(Cartelier, 2003) the question that naturally arises is: why are
administrative allocations so popular a method to assign spectrum?
McMillan (1995) conjectures that administrative allocations provide
additional ‘flexibility’. Accordingly, this study examines
the performance of 3G assignments in terms of an econometric analysis of a
unique sample of national 3G spectrum administrative allocations. These
outcomes are modelled as depending on spectrum package attributes, and
post-award network deployment requirements.
Journal: Applied Economics
Pages: 1713-1718
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.636024
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636024
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1713-1718
Template-Type: ReDIF-Article 1.0
Author-Name: B. Kriechel
Author-X-Name-First: B.
Author-X-Name-Last: Kriechel
Author-Name: G. A. Pfann
Author-X-Name-First: G. A.
Author-X-Name-Last: Pfann
Title: Workforce reorganization and the worker
Abstract:
In this article we study the joint decision process of changing the
structure of jobs and laying off individual workers in a firm that
downsizes its workforce. A hierarchical decision model is proposed and
estimated using personnel data from a firm in demise comparing the
characteristics of the individual workers and the structure of the firm's
labour force before and after its reorganization. Our results show that
workers in jobs in the top levels of each skill group's hierarchy are
better protected against downsizing due to larger productivity shocks and
larger firing costs.
Journal: Applied Economics
Pages: 1719-1729
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.636025
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636025
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1719-1729
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Brown
Author-X-Name-First: Sarah
Author-X-Name-Last: Brown
Author-Name: Michael Dietrich
Author-X-Name-First: Michael
Author-X-Name-Last: Dietrich
Author-Name: Aurora Ortiz Nuñez
Author-X-Name-First: Aurora Ortiz
Author-X-Name-Last: Nuñez
Author-Name: Karl Taylor
Author-X-Name-First: Karl
Author-X-Name-Last: Taylor
Title: Business ownership and attitudes towards risk
Abstract:
We explore the relationship between business ownership and attitudes
towards financial risk using individual level data drawn from the US
Survey of Consumer Finances (SCF). The SCF includes a
measure of individuals’ attitudes towards risk allowing us to
explore the implications of interpersonal differences in risk attitudes
for the probability and success of business ownership. Our empirical
findings suggest that willingness to take financial risk is positively
associated with both the incidence and success of business ownership. We
find that this relationship is particularly pronounced in cases where the
individual actually started the business.
Journal: Applied Economics
Pages: 1731-1740
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.636026
File-URL: http://hdl.handle.net/10.1080/00036846.2011.636026
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1731-1740
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Kneiding
Author-X-Name-First: Christoph
Author-X-Name-Last: Kneiding
Author-Name: Alexander S. Kritikos
Author-X-Name-First: Alexander S.
Author-X-Name-Last: Kritikos
Title: Funding self-employment -- the role of consumer credit
Abstract:
This article investigates whether self-employed households use consumer
loans -- in particular, instalment loans and overdrafts -- to finance
business activities. Controlling for financial and nonfinancial household
variables, we show that self-employed households particularly use personal
overdrafts significantly more often than employee households. When
analysing the correlation between consumer loan take-ups and consumption
of self-employed in comparison to employee households, we find first
evidence that overdrafts are used by self-employed to finance their
business as well. This indicates that intermingling constitutes a
financing strategy when regular business loans might not be accessible.
Journal: Applied Economics
Pages: 1741-1749
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.637895
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637895
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1741-1749
Template-Type: ReDIF-Article 1.0
Author-Name: C. T. Shehzad
Author-X-Name-First: C. T.
Author-X-Name-Last: Shehzad
Author-Name: J. De Haan
Author-X-Name-First: J.
Author-X-Name-Last: De Haan
Author-Name: B. Scholtens
Author-X-Name-First: B.
Author-X-Name-Last: Scholtens
Title: The relationship between size, growth and profitability of commercial banks
Abstract:
Using a dynamic panel model for more than 15 000 banks from 148
countries from 1988 to 2010, we investigate the interaction between size,
growth and profitability of banks. For our total sample, we cannot reject
the hypotheses that the variability of bank profitability and the level
and variability of bank growth are independent of bank size. However, in
high-income Organization for Economic Cooperation and Development (OECD)
countries bigger banks grow slower but are more profitable than small
banks. While bank growth is not persistent, bank profitability is
persistent. Finally, we find that bank growth and bank profitability are
independent of each other.
Journal: Applied Economics
Pages: 1751-1765
Issue: 13
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.637896
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637896
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Handle: RePEc:taf:applec:45:y:2013:i:13:p:1751-1765
Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: Mamta B. Chowdhury
Author-X-Name-First: Mamta B.
Author-X-Name-Last: Chowdhury
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Title: Demand for money in the selected OECD countries: a time series panel data approach and structural breaks
Abstract:
Time series panel data estimation methods are used to estimate the
cointegrating equations for the demand for money (M1) for a panel of 11
Organization for Economic Cooperation and Development (OECD) countries for
which consistent quarterly data are available. The effects of financial
reforms are analysed with structural break tests and estimates for
alternative sub-samples. Our results for the post-reform sub-samples show
that the income elasticity of the demand for money has decreased and
response to interest rate changes has increased.
Journal: Applied Economics
Pages: 1767-1776
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.637897
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637897
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1767-1776
Template-Type: ReDIF-Article 1.0
Author-Name: Franz Fuerst
Author-X-Name-First: Franz
Author-X-Name-Last: Fuerst
Author-Name: George Matysiak
Author-X-Name-First: George
Author-X-Name-Last: Matysiak
Title: Analysing the performance of nonlisted real estate funds: a panel data analysis
Abstract:
The rapid growth of nonlisted real estate funds over the last several
years has contributed towards establishing this sector as a major
investment vehicle for gaining exposure to commercial real estate.
Academic research has not kept up with this development, however, as there
are still only a few published studies on nonlisted real estate funds.
This article aims to identify the factors driving the total return over a
7-year period. Influential factors tested in our analysis include the
weighted underlying direct property returns in each country and sector as
well as fund size, investment style gearing and the distribution yield.
Furthermore, we analyse the interaction of nonlisted real estate funds
with the performance of the overall economy and that of competing asset
classes and find that lagged Gross Domestic Product (GDP) growth and stock
market returns as well as contemporaneous government bond rates are
significant and positive predictors of annual fund performance.
Journal: Applied Economics
Pages: 1777-1788
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.637898
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637898
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1777-1788
Template-Type: ReDIF-Article 1.0
Author-Name: B. M. Craven
Author-X-Name-First: B. M.
Author-X-Name-Last: Craven
Author-Name: G. T. Stewart
Author-X-Name-First: G. T.
Author-X-Name-Last: Stewart
Title: Economic implications of socio-cultural correlates of HIV/AIDS: an analysis of global data
Abstract:
In formulating economic policy in health affairs where millions of people
are deemed to be at risk, the evidence that informs such policy must be
clear and unambiguous. For nearly 30 years there has been a prevailing
consensus supporting the hypothesis that a retrovirus, Human
Immunodeficiency Virus (HIV), is the unique and exclusive cause of a
pandemic of Acquired Immune Deficiency Syndrome (AIDS); that HIV spreads
heterosexually; and that all who acquire it will inevitably and inexorably
develop AIDS and eventually die. This article shows that whilst this
hypothesis is widely and uncritically held the epidemiological data
collected impartially and globally are consistent with other hypotheses
where anomalies are fewer. There are substantial resource implications.
The findings suggest that resources should, especially in African
countries, be directed away from research into HIV and use of
anti-retroviral drugs and vaccines into projects to improve basic living
conditions in the areas of water quality, basic hygiene and nutrition,
where recurrences of other lethal diseases overlap with HIV/AIDS.
Journal: Applied Economics
Pages: 1789-1800
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.639737
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639737
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1789-1800
Template-Type: ReDIF-Article 1.0
Author-Name: Patricio A. Jaramillo
Author-X-Name-First: Patricio A.
Author-X-Name-Last: Jaramillo
Author-Name: Juan Carlos Piantini
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Piantini
Title: Multimodality and mixture distributions: an application to a Survey of Economic Expectations
Abstract:
In this article we present the Silverman multimodality test and mixture
distributions methodology, applying both approaches to the Survey of
Economic Expectations of the Central Bank of Chile. The main results
reflect the importance of a permanent monitoring of the complete
distributions and not just central tendency meausures as is the practice
in many central banks currently. We find that the forecasts of the private
professional forecasters have systematically been in line with the
inflation targeting range, although during episodes where the effective
inflation proved to be outside the target range.
Journal: Applied Economics
Pages: 1801-1817
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.639738
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639738
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1801-1817
Template-Type: ReDIF-Article 1.0
Author-Name: Nancy Huyghebaert
Author-X-Name-First: Nancy
Author-X-Name-Last: Huyghebaert
Author-Name: Mathieu Luypaert
Author-X-Name-First: Mathieu
Author-X-Name-Last: Luypaert
Title: Value creation and division of gains in horizontal acquisitions in Europe: the role of industry conditions
Abstract:
In this article, we empirically investigate the industry determinants of
value creation through Mergers and Acquisitions (M&A) and the division of
M&A gains for a sample of horizontal acquisitions in Europe during the
period 1997--2008. We calculate the combined abnormal return around deal
announcement to proxy for M&A value creation. Our results show that
industry sales concentration and the ratio of the combined target and
bidder size relative to the minimum efficient scale in the corresponding
industry are significantly negatively associated with M&A value creation.
The relation between industry sales growth and M&A gains is U-shaped. The
extent of foreign competition within the industry, industry technological
intensity and industry deregulation bear no significant association with
M&A wealth effects, however. Finally, the data reveal that the division of
M&A gains between target and bidder investors is determined by firm and
deal characteristics rather than by industry conditions.
Journal: Applied Economics
Pages: 1819-1833
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.639739
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639739
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1819-1833
Template-Type: ReDIF-Article 1.0
Author-Name: Carolina Cosculluela-Mart
Author-X-Name-First: Carolina
Author-X-Name-Last: Cosculluela-Mart
Author-Name: Rafael Flores de Frutos
Author-X-Name-First: Rafael Flores
Author-X-Name-Last: de Frutos
Title: Housing investment in Spain: has it been the main engine of growth?
Abstract:
This article studies dynamic responses of employment and Gross Domestic
Product (GDP) growth to a permanent, unitary shock in the housing capital
stock for the Spanish economy. It quantifies the importance of this
variable in the boom experienced by the Spanish economy during the
pre-crisis years. Results confirm that building industry has been the most
important engine for output and labour growth.
Journal: Applied Economics
Pages: 1835-1843
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.639740
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639740
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1835-1843
Template-Type: ReDIF-Article 1.0
Author-Name: Meliyanni Johar
Author-X-Name-First: Meliyanni
Author-X-Name-Last: Johar
Author-Name: Denzil G. Fiebig
Author-X-Name-First: Denzil G.
Author-X-Name-Last: Fiebig
Author-Name: Marion Haas
Author-X-Name-First: Marion
Author-X-Name-Last: Haas
Author-Name: Rosalie Viney
Author-X-Name-First: Rosalie
Author-X-Name-Last: Viney
Title: Using repeated choice experiments to evaluate the impact of policy changes on cervical screening
Abstract:
Australia was one of the first countries to introduce a publicly funded
Human Papilloma Virus (HPV) vaccine program, and its introduction
coincided with a media campaign to promote regular cervical screening. One
issue with HPV vaccination is how it impacts on demand for screening. This
study examines changes in women's screening preferences following these
two interventions, using a novel approach to policy evaluation based on
repeated discrete choice experiments. The study extends our previous
analysis of attitudes to screening by taking advantage of the timing of
the choice experiments to examine the impact of the two policy changes on
determinants of screening. We find that, unexpectedly, willingness to
screen is generally lower post-interventions. The reason for this trend
appears to be related to HPV vaccination. We also find that interventions
have minor impacts on how women value screening attributes. Our approach
allows us to examine the impact of provider behaviour. A simulation
demonstrates that under certain conditions, participation rates can be
increased by 40% to 50% if health providers actively encourage women to
undertake a cervical screening test.
Journal: Applied Economics
Pages: 1845-1855
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.639741
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639741
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1845-1855
Template-Type: ReDIF-Article 1.0
Author-Name: Yunxia Bai
Author-X-Name-First: Yunxia
Author-X-Name-Last: Bai
Author-Name: Bing-Xuan Lin
Author-X-Name-First: Bing-Xuan
Author-X-Name-Last: Lin
Author-Name: Yaping Wang
Author-X-Name-First: Yaping
Author-X-Name-Last: Wang
Author-Name: Liansheng Wu
Author-X-Name-First: Liansheng
Author-X-Name-Last: Wu
Title: Full privatization through controlling rights transfer in China: the extent of its success
Abstract:
This article investigates the effect of the second step of privatization
in China, which is full privatization through controlling rights transfer
after share issue partial privatization. It finds that fully privatized
firms perform worse than state-controlled enterprises. Expropriation by
private block shareholders is greater than that by state block
shareholders. Furthermore, increase in expropriation is negatively related
to performance change. The results suggest that full privatization may not
yield the expected efficiency gains in transition economies with weak
legal system. They also emphasize the importance of preventing private
block shareholders from exploiting minority shareholders in the process of
full privatization.
Journal: Applied Economics
Pages: 1857-1867
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.639742
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639742
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1857-1867
Template-Type: ReDIF-Article 1.0
Author-Name: Raghav Gaiha
Author-X-Name-First: Raghav
Author-X-Name-Last: Gaiha
Author-Name: Raghbendra Jha
Author-X-Name-First: Raghbendra
Author-X-Name-Last: Jha
Author-Name: Vani Kulkarni
Author-X-Name-First: Vani
Author-X-Name-Last: Kulkarni
Title: Demand for nutrients in India: 1993 to 2004
Abstract:
In response to the Deaton and Dreze (2009) explanation of a downward
shift in the calorie Engel curve in terms of lower requirements due to
health improvements and lower activity levels in India, we develop an
alternative explanation embedded in a standard demand theory framework,
with food prices and expenditure (as a proxy for income) cast in a pivotal
role. We find robust food price and expenditure effects and shifting food
price elasticities. There are shifts in demands due to factors other than
lower requirements. So, while the Deaton and Dreze (2009) explanation is
not rejected, it is arguable that it is complementary to the demand based
explanations.
Journal: Applied Economics
Pages: 1869-1886
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.639744
File-URL: http://hdl.handle.net/10.1080/00036846.2011.639744
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1869-1886
Template-Type: ReDIF-Article 1.0
Author-Name: Tristan D. Skolrud
Author-X-Name-First: Tristan D.
Author-X-Name-Last: Skolrud
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: A Fourier analysis of the US dairy industry
Abstract:
Measurement of economies of scale and scope is particularly important for
predicting growth and product diversification. However, estimates are
useful only to the extent the underlying production technology is modelled
accurately. This study measures economies of scale and scope in the
rapidly changing US dairy industry with a Fourier flexible cost function,
which provides a global approximation of the unknown function. We use the
high quality national Agricultural and Resource Management Survey (ARMS)
survey data. We find economies of scale at most firm sizes and persistent
economies of scope across firm sizes in this industry, which is counter to
estimates from two Diewert‐flexible functional forms.
Journal: Applied Economics
Pages: 1887-1895
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.648319
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648319
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1887-1895
Template-Type: ReDIF-Article 1.0
Author-Name: William H. Greene
Author-X-Name-First: William H.
Author-X-Name-Last: Greene
Author-Name: David A. Hensher
Author-X-Name-First: David A.
Author-X-Name-Last: Hensher
Title: Revealing additional dimensions of preference heterogeneity in a latent class mixed multinomial logit model
Abstract:
Latent class models offer an alternative perspective to the popular mixed
logit form, replacing the continuous distribution with a discrete
distribution in which preference heterogeneity is captured by membership
of distinct classes of utility description. Within each class, preference
homogeneity is usually assumed, although interactions with observed
contextual effects are permissible. A natural extension of the fixed
parameter latent class model is a random parameter latent class model
which allows for another layer of preference heterogeneity within each
class. This article sets out the random parameter latent class model and
illustrates its applications using a stated choice data set on alternative
freight distribution attribute packages pivoted around a recent trip in
Australia.
Journal: Applied Economics
Pages: 1897-1902
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.650325
File-URL: http://hdl.handle.net/10.1080/00036846.2011.650325
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1897-1902
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Author-Name: Sharmistha Self
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Self
Title: Mother's autonomy: impact on the quality of children's healthcare in India
Abstract:
Given the poor condition of children's health in developing countries,
this article seeks to examine two hypotheses concerning healthcare for
children. First, does mother's autonomy influence the quality of child
healthcare and, second, which is related to the first, whether mother's
autonomy reduces the apparent gender bias in child healthcare. Using
household survey data from Bihar and Uttar Pradesh in India the article
finds that for the most part as the mother's autonomy (measured several
different ways) increases, the quality of care for children improves. The
results also indicate that gender bias exists in the provision of quality
healthcare for children. Male children generally receive better quality
care. However, for several measures of female autonomy, an increase in
such autonomy reduces the bias. The results of this analysis have
important policy implications and provide additional insight into the
state of affairs of children's health in rural India.
Journal: Applied Economics
Pages: 1903-1913
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.637899
File-URL: http://hdl.handle.net/10.1080/00036846.2011.637899
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1903-1913
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Siminski
Author-X-Name-First: Peter
Author-X-Name-Last: Siminski
Title: Are low-skill public sector workers really overpaid? A quasi-differenced panel data analysis
Abstract:
Public--private sectoral wage differentials have been studied extensively
using quantile regression techniques. These typically find large public
sector premiums at the bottom of the wage distribution. This may imply
that low skill workers are ‘overpaid’, prompting concerns
over efficiency. We note several other potential explanations for this
result and explicitly test whether the premium varies with skill, using
Australian data. We use a quasi-differenced Generalized Method of Moments
(GMM) panel data model which has not been previously applied to this
topic, internationally. Unlike other available methods, this technique
identifies sectoral differences in returns to unobserved skill. It also
facilitates a decomposition of the wage gap into components explained by
differences in returns to all (observed and unobserved) skills and by
differences in their stock. We find no evidence to suggest that the
premium varies with skill. One interpretation is that the compressed wage
profile of the public sector induces the best workers (on unobserved
skills) to join the public sector in low wage occupations, vice
versa in high wage occupations. We also estimate the average
public sector premium to be 6% for women and statistically insignificant
(4%) for men.
Journal: Applied Economics
Pages: 1915-1929
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.641928
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641928
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1915-1929
Template-Type: ReDIF-Article 1.0
Author-Name: Y. F. Chia
Author-X-Name-First: Y. F.
Author-X-Name-Last: Chia
Title: Dollars and pounds: the impact of family income on childhood weight
Abstract:
This article examines the impact of family income on childhood weight
status for children in the United States using matched mother-child data
from the National Longitudinal Survey of Youth (NLSY 79). Instrumental
variable (IV) models, family Fixed Effects (FE) models and family Fixed
Effects IV (FEIV) models are estimated in order to control for causality.
The results suggest that although the prevalence of childhood obesity is
higher in low-income families in the sample, family income might be acting
primarily as a proxy for other unobserved characteristics that determine
the child's weight status rather having a major direct causative role in
determining the child's weight status.
Journal: Applied Economics
Pages: 1931-1941
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.641929
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641929
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1931-1941
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio F. Galvao
Author-X-Name-First: Antonio F.
Author-X-Name-Last: Galvao
Author-Name: Gabriel Montes-Rojas
Author-X-Name-First: Gabriel
Author-X-Name-Last: Montes-Rojas
Author-Name: Jose Olmo
Author-X-Name-First: Jose
Author-X-Name-Last: Olmo
Title: A panel data test for poverty traps
Abstract:
This article develops a threshold panel data nonlinearity test for
poverty traps. The new testing strategy extends the work on nonlinearity
tests for panel data by considering threshold nonlinearities in the
fixed-effects components. Monte Carlo simulations are conducted to
evaluate the finite-sample performance of these tests. The tests are
applied to the relationship between Gross Domestic Product (GDP) per
capita and capital stock per capita. Our application to a panel of
countries for the period 1973 to 2007 uncovers the presence of two regimes
determined by the level of capital stock per capita. The conclusions from
our test also support the existence of a poverty trap determined by a
capital stock per capita level at the 11% quantile of its pooled worldwide
distribution.
Journal: Applied Economics
Pages: 1943-1952
Issue: 14
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.641930
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641930
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Handle: RePEc:taf:applec:45:y:2013:i:14:p:1943-1952
Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Trenkler
Author-X-Name-First: Carsten
Author-X-Name-Last: Trenkler
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Testing for codependence of cointegrated variables
Abstract:
We analyse nonstationary time series that do not only trend together in
the long run, but restore the equilibrium immediately in the period
following a deviation. While this represents a common serial correlation
feature, the framework is extended to codependence, allowing for delayed
adjustment. We show which restrictions are implied for the Moving Average
(MA) and Vector Error Correction Model (VECM) representations and put
forward a Generalized Method of Moments (GMM) test. In addition, for cases
where the constraints can be uniquely imposed on a VECM a likelihood ratio
test is proposed. We apply the concept to US and European interest rate
data, examining the capability of the Federal Reserve Bank (Fed) and
European Central Bank (ECB) to control overnight money market rates.
Journal: Applied Economics
Pages: 1953-1964
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.641931
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641931
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:1953-1964
Template-Type: ReDIF-Article 1.0
Author-Name: Annabel Vanroose
Author-X-Name-First: Annabel
Author-X-Name-Last: Vanroose
Author-Name: Bert D’Espallier
Author-X-Name-First: Bert
Author-X-Name-Last: D’Espallier
Title: Do microfinance institutions accomplish their mission? Evidence from the relationship between traditional financial sector development and microfinance institutions’ outreach and performance
Abstract:
This article analyses the relationship between outreach and performance
of Microfinance Institutions (MFIs) on the one hand and traditional
financial sector development on the other. The results indicate that MFIs
reach more clients and are more profitable in countries where access to
the traditional financial system is low. This finding is in line with the
market-failure hypothesis: MFIs respond to a need that banks do not
fulfill and MFIs flourish where the formal financial sector fails. Along
the same line, the results demonstrate that MFIs serve poorer people in
countries with well-developed financial systems. The results suggest that
in countries with well-developed financial systems, the two sectors stand
in more direct competition with each other. This competition pushes MFIs
down the market and makes mission drift by MFIs less likely.
Journal: Applied Economics
Pages: 1965-1982
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.641932
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641932
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:1965-1982
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale
Author-X-Name-First: Tony
Author-X-Name-Last: Caporale
Author-Name: Trevor C. Collier
Author-X-Name-First: Trevor C.
Author-X-Name-Last: Collier
Title: Scouts versus Stats: the impact of Moneyball on the Major League Baseball draft
Abstract:
Michael Lewis’ influential book Moneyball (2003)
discusses several sources of inefficiency in the Major League Baseball
(MLB) labour market; one of these being the failure of baseball scouts to
place a draft premium on college players. We test this implication of the
Moneyball thesis -- the superiority of college players --
by measuring the productivity of players who were drafted in the first
round of five MLB drafts covering the years 1995--1999. Employing a
variety of specifications, we find that the performance of college draft
choices is no better than those of high school picks and argue that this
is consistent with Hayek's (1944) work on the economics of information and
his emphasis on the importance of localized knowledge. Additionally, we
utilize data on the first three rounds of the MLB draft from 1965 to 2010
to test whether Lewis’ book had any impact on teams’ draft
strategies. We find no significant structural change in the draft
following the publication of Moneyball.
Journal: Applied Economics
Pages: 1983-1990
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.641933
File-URL: http://hdl.handle.net/10.1080/00036846.2011.641933
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:1983-1990
Template-Type: ReDIF-Article 1.0
Author-Name: R. Montizaan
Author-X-Name-First: R.
Author-X-Name-Last: Montizaan
Author-Name: F. Cörvers
Author-X-Name-First: F.
Author-X-Name-Last: Cörvers
Author-Name: A. de Grip
Author-X-Name-First: A.
Author-X-Name-Last: de Grip
Title: Training and retirement patterns
Abstract:
Life-cycle theory predicts that employers enter into implicit contracts
with newly hired employees to ensure rent-sharing and to decrease turnover
after firm-specific training investments. Typically, these implicit
contracts would include both upward sloping earning profiles and mandatory
retirement. In this article, we empirically test the prediction that
workers with firm-specific skills are restrained in their options to
continue working. Therefore, they are more likely to retire at common
mandatory retirement dates than those with general skills. Using the US
National Longitudinal Survey of Older Men, we find that workers who
participated in firm-specific training in their early careers do indeed
retire earlier than those with general skills. The results show that
compulsory retirement plans force these older workers to retire when they
reach the common mandatory retirement age of 65. The results presented in
this article are highly relevant for public policies in European and other
industrialized countries that aim to increase labour force participation
of the elderly. As our study demonstrates, the effectiveness of
institutional arrangements to postpone retirement will also depend on
training policies of employers and the type of skills workers acquired in
the past.
Journal: Applied Economics
Pages: 1991-1999
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.646066
File-URL: http://hdl.handle.net/10.1080/00036846.2011.646066
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:1991-1999
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale
Author-X-Name-First: Tony
Author-X-Name-Last: Caporale
Author-Name: Julia Paxton
Author-X-Name-First: Julia
Author-X-Name-Last: Paxton
Title: Inflation stationarity during Latin American inflation: insights from unit root and structural break analysis
Abstract:
Inflation stationarity has important theoretical and policy implications,
yet most of the literature has focused on low inflation countries. This
article investigates inflation stationarity in Brazil, Argentina, Chile,
Mexico and Bolivia during a hyperinflationary period from 1980 to 2004. We
test for structural breaks in inflation, discuss the breaks in terms of
changes in monetary regimes, and test if accounting for these structural
breaks changes the nonstationarity results for those nations that
‘fail’ the traditional Augmented Dickey--Fuller (ADF) test
for inflation. All five are found to have inflation rates that are
I(0) once the structural breaks analysis is incorporated
into our unit root tests.
Journal: Applied Economics
Pages: 2001-2010
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.646067
File-URL: http://hdl.handle.net/10.1080/00036846.2011.646067
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2001-2010
Template-Type: ReDIF-Article 1.0
Author-Name: Azzeddine Azzam
Author-X-Name-First: Azzeddine
Author-X-Name-Last: Azzam
Author-Name: Belaid Rettab
Author-X-Name-First: Belaid
Author-X-Name-Last: Rettab
Title: Market power versus efficiency under uncertainty: conventional versus Islamic banking in the GCC
Abstract:
In this article we estimate the effect of concentration on intermediation
margins in Gulf Cooperation Council's (GCC) Islamic and conventional
banking under the assumption that margins are uncertain. The empirical
model, which we formally derive from an expected utility maximization
problem, allows us to test for risk aversion as well as competitive
conduct in loan and the deposit markets. The model also yields an
expression showing that the effect of concentration on margins is the sum
of its respective effects on market power, marginal cost of intermediation
and marginal cost of uncertainty. The expression allows us to test whether
concentration is welfare enhancing, reducing or neutral. We find Islamic
banks to be risk-averse and conventional banks to be risk-neutral. We also
find that concentration is welfare-neutral in Islamic loans and deposits,
welfare-enhancing in conventional loans and welfare-neutral in
conventional deposits. We used Nonlinear Two-Stage Least Squares (N2SLS)
and Nonlinear Three-Stage Least Squares (N3SLS) to check for robustness.
Journal: Applied Economics
Pages: 2011-2022
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.646068
File-URL: http://hdl.handle.net/10.1080/00036846.2011.646068
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2011-2022
Template-Type: ReDIF-Article 1.0
Author-Name: Boon L. Lee
Author-X-Name-First: Boon L.
Author-X-Name-Last: Lee
Title: Productivity, technical and efficiency change in Singapore's services sector, 2005 to 2008
Abstract:
The current study was motivated by statements made by the Economic
Strategies Committee that Singapore's recent productivity levels in
services were well below countries such as the US, Japan and Hong Kong.
Massive employment of foreign workers was cited as the reason for poor
productivity levels. To shed more light on Singapore's falling
productivity, a nonparametric Malmquist productivity index was employed
which provides measures of productivity change, technical change and
efficiency change. The findings reveal that growth in Total Factor
Productivity (TFP) was attributed to technical change with no improvement
in efficiency change. Such results suggest that gains from TFP were
input-driven rather than from a ‘best-practice’ approach
such as improvements in operations or better resource allocation.
Journal: Applied Economics
Pages: 2023-2029
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.646069
File-URL: http://hdl.handle.net/10.1080/00036846.2011.646069
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2023-2029
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Tyler Brown
Author-X-Name-First: Timothy Tyler
Author-X-Name-Last: Brown
Title: A monetary valuation of individual religious behaviour: the case of prayer
Abstract:
The majority of the US population is religious. The value of a
fundamental religious behaviour, prayer, is determined using the
well-being valuation method. Theoretically appropriate Instrumental
Variables (IV) are used to avoid bias in estimating the effects of
household income and the frequency of prayer on well-being. The marginal
value of an additional weekly prayer session for individuals already at
the national mean is estimated to be $6550 per annum (2004 dollars).
Praying at the frequency of the national mean of 8.1 prayer sessions
weekly is valued at $53 055 (2004 dollars) per annum. This is
larger than the median household income in the US in 2004: $44 684.
This suggests that the perception of communion with God is highly valued
by religious individuals.
Journal: Applied Economics
Pages: 2031-2037
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.648318
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648318
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2031-2037
Template-Type: ReDIF-Article 1.0
Author-Name: Kanittha Tambunlertchai
Author-X-Name-First: Kanittha
Author-X-Name-Last: Tambunlertchai
Author-Name: Andreas Kontoleon
Author-X-Name-First: Andreas
Author-X-Name-Last: Kontoleon
Author-Name: Madhu Khanna
Author-X-Name-First: Madhu
Author-X-Name-Last: Khanna
Title: Assessing participation in voluntary environmental programmes in the developing world: the role of FDI and export orientation on ISO14001 adoption in Thailand
Abstract:
Empirical assessments of the determinants of firm participation in
Voluntary Environmental Programmes (VEPs) in the developing world are
largely absent from the environmental regulation literature, leaving a
number of important factors unique to such countries unexplored. This
article examines these factors, namely the roles played by Foreign Direct
Investment (FDI) and export orientation, in addition to factors deemed
important in the industrialized world context to the problem of ISO14001
adoption in one developing nation, Thailand. We make use of unique primary
data from 494 firms, and focus on three important industries, the
resource-based food and beverages industry, the labour-intensive textiles
and wearing apparel industry, and the more high-technology electronics and
electrical appliances industry. We find that FDI plays a role in ISO14001
adoption, especially FDI from Organization for Economic Co-operation and
Development (OECD) and ISO14001-rich countries. Other important
determinants include firm size, experience with ISO9000, and production of
intermediate products. Firms faced with fewer obstacles to environmental
improvements such as those facing lower costs, having more understanding
of the procedure, and with greater access to the appropriate technology
are also more likely to adopt ISO14001.
Journal: Applied Economics
Pages: 2039-2048
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.648320
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648320
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2039-2048
Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Serra-Sastre
Author-X-Name-First: Victoria
Author-X-Name-Last: Serra-Sastre
Author-Name: Alistair McGuire
Author-X-Name-First: Alistair
Author-X-Name-Last: McGuire
Title: Information and diffusion of new prescription drugs
Abstract:
This article examines the role of different product information flows on
the diffusion of new pharmaceuticals. Given the innovative nature of
pharmaceutical drugs and their impact on health care expenditure there is
a surprisingly small literature devoted to this topic. Some information
flow mechanisms have been examined individually in the literature, but
very few have captured the simultaneous impact of these mechanisms on
up-take and diffusion. This article uses the up-take of statins as an
example. Diffusion of this therapeutical group is expressed as a function
of four specific informational channels: self-experience, consumption
externalities, scientific evidence and marketing. In addition to this, the
influence of economic factors is tested to examine whether they have any
role in drug diffusion. Prescription data from over 130 General
Practitioners (GP) practices in the UK during 1991--2004 are used to test
the econometric specification applying dynamic panel data methods. Results
suggest individual self-experience and clinical evidence are major factors
promoting diffusion, while there is an inverse relationship with GP
practice size and diffusion. Having controlled for these factors financial
incentives and marketing appear to play little role.
Journal: Applied Economics
Pages: 2049-2057
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.648321
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648321
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2049-2057
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas W. Zuehlke
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Zuehlke
Title: Estimation and testing of nonproportional Weibull hazard models
Abstract:
Most applications of the Weibull hazard model specify a common shape
parameter. This is a proportional hazard model that imposes a common rate
of duration dependence. A wide class of nonproportional Weibull models may
be estimated by making the shape parameter a linear function of observable
regressors. The log-likelihood function for these models is well behaved.
The conditions under which this generalization is useful are essentially
the same conditions under which interaction terms are useful in classical
regression. Since the nonproportional model nests the proportional model,
a formal test for nonproportionality may be conducted by likelihood ratio
test. Estimation and testing of nonproportional models is illustrated with
data sets for housing sales, out-of-court settlements and oil field
exploration. Finally, estimation of a proportional Weibull model after
adding temporal interaction terms to the regressors that specify the scale
parameter is shown to be a fundamental misspecification. The standard
log-likelihood function fails to recognize the stochastic nature of
temporal interaction terms and the resulting estimates often fall outside
the parameter space of the Weibull.
Journal: Applied Economics
Pages: 2059-2066
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.648322
File-URL: http://hdl.handle.net/10.1080/00036846.2011.648322
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2059-2066
Template-Type: ReDIF-Article 1.0
Author-Name: I. Sheldon
Author-X-Name-First: I.
Author-X-Name-Last: Sheldon
Author-Name: S. Khadka Mishra
Author-X-Name-First: S. Khadka
Author-X-Name-Last: Mishra
Author-Name: D. Pick
Author-X-Name-First: D.
Author-X-Name-Last: Pick
Author-Name: S. R. Thompson
Author-X-Name-First: S. R.
Author-X-Name-Last: Thompson
Title: Exchange rate uncertainty and US bilateral fresh fruit and fresh vegetable trade: an application of the gravity model
Abstract:
In order to analyse the effect of exchange rate uncertainty, we apply an
empirical gravity equation to two sets of US bilateral trade data: fresh
fruit over the period 1976--1999 for a panel of 26 countries; and fresh
vegetables over the period 1976--2006 for a panel of nine countries. Based
on panel estimation methods, and using both a moving SD measure and the
Per饠and Steinherr (1989) measure of exchange rate uncertainty, the
results show that US bilateral fresh fruit trade has been negatively
affected by exchange rate uncertainty. We also find some evidence that the
exchange rate between the US dollar and the currencies of Latin American
trading partners accounts for most of the negative impact of exchange rate
uncertainty on bilateral trade flows in fresh fruit. In contrast, when
using panel estimation methods and both measures of exchange rate
uncertainty, we find no statistically significant evidence for any
negative effect of exchange rate uncertainty on US bilateral fresh
vegetable trade. However, we do find a statistically significant negative
effect for exchange rate uncertainty when we estimate a US export gravity
equation for fresh vegetables using the same panel of countries.
Journal: Applied Economics
Pages: 2067-2082
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.650330
File-URL: http://hdl.handle.net/10.1080/00036846.2011.650330
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2067-2082
Template-Type: ReDIF-Article 1.0
Author-Name: E. Feess
Author-X-Name-First: E.
Author-X-Name-Last: Feess
Author-Name: C. R. Schumacher
Author-X-Name-First: C. R.
Author-X-Name-Last: Schumacher
Title: The elasticity of demand for wagering in an unregulated market
Abstract:
The literature estimating the take-out rate (price) elasticity of horse
race wagering has consistently found values far above one. The persistence
of these apparently inefficiently high prices can be attributed to
institutional factors of the US market where federal taxes are imposed on
the total amount wagered, and not on the bookmakers’ revenue. By
investigating all horse races in New Zealand from August 1993 to April
2009, our article is the first one to consider price setting for wagering
in an unregulated market where taxes for a monopolistic betting agency are
based on revenues. In such a setting, one would expect elasticities close
to one, but in all econometric specifications, we find values well below
one. We identify two reasons why higher prices could nevertheless reduce
profits: cross price elasticities are negative and, due to the specific
features of parimutuel betting, international competitors may only be
attracted when take-out rates are above a critical threshold.
Journal: Applied Economics
Pages: 2083-2090
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2011.650331
File-URL: http://hdl.handle.net/10.1080/00036846.2011.650331
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2083-2090
Template-Type: ReDIF-Article 1.0
Author-Name: H. Okudaira
Author-X-Name-First: H.
Author-X-Name-Last: Okudaira
Author-Name: M. Takizawa
Author-X-Name-First: M.
Author-X-Name-Last: Takizawa
Author-Name: K. Tsuru
Author-X-Name-First: K.
Author-X-Name-Last: Tsuru
Title: Employment protection and productivity: evidence from firm-level panel data in Japan
Abstract:
Recent developments in the literature on Employment Protection
Legislation (EPL) have revealed that changing the stringency of employment
protection can lead to extensive consequences outside the labour market,
by affecting firms’ production decisions or workers’
commitment levels. This article provides the first empirical evaluation of
the comprehensive effect of restrictions on firing employees in Japan, by
exploiting the variations in court decisions. We find that judgements
lenient to workers significantly reduce firms’ total-factor
productivity growth rate. The effect on capital is mixed and inconclusive,
although we obtain modest evidence that an increase in firing costs
induces a negative scale effect on capital inputs.
Journal: Applied Economics
Pages: 2091-2105
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2012.654913
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654913
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2091-2105
Template-Type: ReDIF-Article 1.0
Author-Name: Sonia Akter
Author-X-Name-First: Sonia
Author-X-Name-Last: Akter
Author-Name: Jeff Bennett
Author-X-Name-First: Jeff
Author-X-Name-Last: Bennett
Title: Preference uncertainty in stated preference studies: facts and artefacts
Abstract:
The ordinal scale and polychotomous choice methods are two widely used
techniques for estimating preference uncertainty in stated preference
studies. This article presents the results of two experiments that apply
these estimation techniques. The first experiment was designed to compare
and contrast the scores of the ordinal scale and polychotomous choice
method. The second experiment was conducted to test a scale that combines
verbal expressions with numerical and graphical interpretations: a
composite scale. The results of the study can be summarized in three key
findings. First, the polychotomous choice method generates a higher
proportion of ‘yes’ responses than the conventional
dichotomous choice elicitation format. Second, the composite scale
generates a significantly higher proportion of certain responses. Finally,
the ordinal scale performs poorly on the ground of construct validity.
Journal: Applied Economics
Pages: 2107-2115
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2012.654914
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654914
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2107-2115
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Cavalcanti Ferreira
Author-X-Name-First: Pedro Cavalcanti
Author-X-Name-Last: Ferreira
Title: AIDS, longevity and long-run income
Abstract:
This article studies the long-run impact of HIV/AIDS on per capita income
and education. We focus on the disincentive to human capital accumulation
given by shorter life span. We work with a continuous time overlapping
generations model with education and saving decisions, calibrated for a
cross-section of countries. The simulations predict that the most affected
countries in Sub-Saharan Africa will be in future, on average, 20% poorer
than they would be without AIDS. Schooling will decline in some cases such
as Botswana, South Africa and Zambia by more than 40%. The impact of
population decline was found to be irrelevant.
Journal: Applied Economics
Pages: 2117-2125
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2012.654915
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654915
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2117-2125
Template-Type: ReDIF-Article 1.0
Author-Name: Shiyong Zhao
Author-X-Name-First: Shiyong
Author-X-Name-Last: Zhao
Title: Privatization, FDI inflow and economic growth: evidence from China's provinces, 1978--2008
Abstract:
China's economic growth over 1978--2008 is a miracle. This article
attempts to figure out and quantify the factors leading to this miracle.
It is generally believed that economic reform and opening up is the key to
China's economic success, but that is far from being exact and specific.
This study hypothesizes that privatization and Foreign Direct Investment
(FDI) inflow are the two key factors in this process. We focus on
identifying the exact, specific and detailed mechanisms of privatization
and FDI inflow in promoting economic growth, especially from the
provincial level. Then using a panel data covering 31 provinces of Chinese
mainland over 1978--2008, we find statistically significant evidence to
support our hypotheses. We predict that further economic growth depends on
further privatization and opening up, that is, depends on
denationalization of the economy.
Journal: Applied Economics
Pages: 2127-2139
Issue: 15
Volume: 45
Year: 2013
Month: 5
X-DOI: 10.1080/00036846.2012.654916
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654916
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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2127-2139
Template-Type: ReDIF-Article 1.0
Author-Name: Mauricio Calani
Author-X-Name-First: Mauricio
Author-X-Name-Last: Calani
Author-Name: J. Rodrigo Fuentes
Author-X-Name-First: J. Rodrigo
Author-X-Name-Last: Fuentes
Author-Name: Klaus Schmidt-Hebbel
Author-X-Name-First: Klaus
Author-X-Name-Last: Schmidt-Hebbel
Title: A systemic approach to modelling and estimating demand for money(ies)
Abstract:
This article uses a consumer theory-based systemic approach to model the
demand for monetary liquid asset holdings in Chile. We implement the
suggestions and caveats of aggregation theory for the estimation of a
demand system for liquid assets (monies) in static, dynamic and
time-varying parameters setups. Our results are robust and theoretically
consistent with consumer theory restrictions, as a system derived from a
utility maximizing framework and a quasi concave utility function. In our
estimations, we find stability of interest rate elasticities, in contrast
to previous related literature. We also document evidence that long
(short) maturity rates are associated to less (more) liquid assets.
Journal: Applied Economics
Pages: 2141-2162
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2011.610745
File-URL: http://hdl.handle.net/10.1080/00036846.2011.610745
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2141-2162
Template-Type: ReDIF-Article 1.0
Author-Name: Yaobin Liu
Author-X-Name-First: Yaobin
Author-X-Name-Last: Liu
Title: Economic growth drag in the Central China: evidence from a panel analysis
Abstract:
This article employs recently developed panel methods to test for unit
roots, cointegration and Granger causality to justify and estimate the
drag induced by resource constraint and environmental pollution for the
Central China. The results of the panel cointegration test show that there
is a stable long run relationship amongst total output, capital, labour,
land, water and SO2 when total output is the dependent
variable. The results of the causality test with Error Correction Model
(ECM) analysis suggest that the available water resource and environmental
pollutant have no impacts on total output temporarily, but in the
long‐run there is a Granger causality running from these variables
to total output, indicating the economic growth drag induced by the
natural resource and environmental pollution can be further estimated.
Given the stable cointegration and significant Granger causality being,
the study shows that the drag on the total output reduces annual economic
growth rate by about 1.1 percentage points for the Central China as a
whole and there is a significant difference on the aggregated and
disaggregated drags for the six provinces, which indicates that natural
resource and environmental constraints so far incorporated into production
probably have a modest effect over the past 31 years for the Central
China.
Journal: Applied Economics
Pages: 2163-2174
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.654917
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654917
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2163-2174
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Author-Name: Andr頠 Varella Mollick
Author-X-Name-First: Andr頠 Varella
Author-X-Name-Last: Mollick
Title: Border region panel evidence on PPP deviations
Abstract:
This article examines prices for 32 identical menu items sold by
restaurant franchises operating on both sides of the border between El
Paso in the US and Ciudad Juárez in Mexico from July 1997 to June
2008. The relationship between Real Exchange Rate (RER) volatility and the
degree of price convergence is examined within a panel data context. The
city-pair and goods selected provide a unique experiment in which
distance, tradability and industry considerations are set aside and the
extent of RER volatility is the only factor to influence price
convergence. We find nonmonotonic relationships between mean reversion and
RER volatility: very fast adjustments for both low and
high volatility panels of goods (between 1 and 2 months) and slower
half-lives (between 3 and 4 months) at moderate levels of uncertainty.
These figures are, however, substantially smaller than the 6 or 7 months
reported in previous research for general US--Mexico goods, suggesting the
very strong price convergence observed along the US--Mexican border.
Journal: Applied Economics
Pages: 2175-2182
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.654919
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654919
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2175-2182
Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim
Author-X-Name-First: Sangho
Author-X-Name-Last: Kim
Author-Name: Hyunjoon Lim
Author-X-Name-First: Hyunjoon
Author-X-Name-Last: Lim
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Title: Does productivity growth lower inflation in Korea?
Abstract:
We investigate Granger causality between productivity growth and
inflation in Korea using quarterly data for the period 1985Q1--2002Q4. Our
results indicate unidirectional Granger causality from productivity growth
to inflation. In light of such causality, we estimate the effect of
productivity and other variables on productivity. According to our
regression results, a 1% increase in labour and Total Factor Productivity
(TFP) reduces Consumer Price Index (CPI) inflation by 0.07--0.08% and
0.37--0.44%, respectively. Our results also suggest that the
productivity-inflation nexus became stronger in Korea since the Asian
financial crisis, and that this was largely due to structural reform and
technological progress.
Journal: Applied Economics
Pages: 2183-2190
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.657352
File-URL: http://hdl.handle.net/10.1080/00036846.2012.657352
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2183-2190
Template-Type: ReDIF-Article 1.0
Author-Name: N. Au
Author-X-Name-First: N.
Author-X-Name-Last: Au
Author-Name: K. Hauck
Author-X-Name-First: K.
Author-X-Name-Last: Hauck
Author-Name: B. Hollingsworth
Author-X-Name-First: B.
Author-X-Name-Last: Hollingsworth
Title: The relationship between smoking, quitting smoking and obesity in Australia: a seemingly unrelated probit approach
Abstract:
Smoking and obesity are two leading causes of preventable death. Further
understanding of the relationship between these two risk factors can
assist in reducing avoidable morbidity and mortality. This study
investigates the empirical association between obesity and the propensity
to smoke and to quit smoking, using a Seemingly Unrelated (SUR) probit
approach that takes into consideration the potential for reverse causality
and unobserved heterogeneity. Using Australian health survey data, this
article demonstrates the usefulness of the SUR probit approach in
generating information on the relationship between unobserved factors
influencing both smoking behaviour and obesity, and in providing estimates
of the conditional probabilities of each risk factor. Results suggest the
two risk factors are not independent. The presence, size and direction of
correlation between the unobserved factors are found to vary by smoking
behaviour and by gender. Estimates of conditional probabilities
demonstrate smokers have a lower probability of obesity, particularly
among females, and ex-smokers have a higher probability of obesity,
particularly among males. These findings suggest that health policies
targeted at one risk factor may have unintended implications for the
other.
Journal: Applied Economics
Pages: 2191-2199
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.657353
File-URL: http://hdl.handle.net/10.1080/00036846.2012.657353
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2191-2199
Template-Type: ReDIF-Article 1.0
Author-Name: Rita Almeida
Author-X-Name-First: Rita
Author-X-Name-Last: Almeida
Author-Name: Ana M. Fernandes
Author-X-Name-First: Ana M.
Author-X-Name-Last: Fernandes
Title: Explaining local manufacturing growth in Chile: the advantages of sectoral diversity
Abstract:
This article investigates whether the agglomeration of economic activity
in regional clusters affects long-run manufacturing Total Factor
Productivity (TFP) growth in an emerging market context. We explore a
large firm-level panel dataset for Chile during a period characterized by
high growth rates and rising regional income inequality (1992--2004). Our
findings are clear-cut. Locations with greater concentration of a
particular sector have not experienced faster TFP growth
during this period. Rather, local sector diversity was associated with
higher long-run TFP growth. However, there is no evidence that the
diversity effect was driven by the local interaction with a set of
suppliers and/or clients. We interpret this as evidence that agglomeration
economies are driven by other factors such as the sharing of access to
specialized inputs not provided solely by a single sector, e.g. skills or
financing.
Journal: Applied Economics
Pages: 2201-2213
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.659344
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659344
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2201-2213
Template-Type: ReDIF-Article 1.0
Author-Name: Semra Özdemir
Author-X-Name-First: Semra
Author-X-Name-Last: Özdemir
Author-Name: F. Reed Johnson
Author-X-Name-First: F. Reed
Author-X-Name-Last: Johnson
Title: Estimating willingness to pay: do health and environmental researchers have different methodological standards?
Abstract:
Health and environmental economists have been employing Stated-Preference
(SP) methods such as conjoint analysis or contingent valuation to estimate
the monetary value of public health interventions and environmental goods
and services. However, the quality of data and the validity of results are
sensitive to a number of decisions researchers make. The aim of this study
is to compare the degree of the current consensus among active researchers
in the rapidly evolving area of SP methods in health and environmental
valuation. We surveyed researchers who have published manuscripts on SP
methods in the last 10 years. Researchers were presented with hypothetical
SP studies with different attributes. They were first asked which study
they would recommend to use to inform policy decisions, and then asked
which study has better-quality. Our results show that good-practice SP
methods vary among study features and among researchers with different
amounts and kinds of research experience. Although health researchers had
specific preferences on which study features were better, their quality
judgements were not very consistent with their judgements about the
acceptability of studies for policy analysis. On the other hand,
environmental researchers had similar preferences over the study
attributes for the two types of questions.
Journal: Applied Economics
Pages: 2215-2229
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.659345
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659345
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2215-2229
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marc Burniaux
Author-X-Name-First: Jean-Marc
Author-X-Name-Last: Burniaux
Author-Name: Jean Chateau
Author-X-Name-First: Jean
Author-X-Name-Last: Chateau
Author-Name: Romain Duval
Author-X-Name-First: Romain
Author-X-Name-Last: Duval
Title: Is there a case for carbon-based border tax adjustment? An applied general equilibrium analysis
Abstract:
Concern that unilateral Greenhouse Gas (GHG) emission reductions could
foster carbon leakage and undermine the international competitiveness of
domestic industry has led to growing calls for carbon-based Border-Tax
Adjustments (BTAs). This article uses a global general equilibrium model
to assess the economic effects of BTAs and comes to three main
conclusions. First, BTAs can reduce carbon leakage if the coalition of
countries taking action to reduce GHG emissions is small, because in this
case leakage (while typically small) mainly occurs through international
trade competitiveness losses rather than through declines in world fossil
fuel prices. Second, even though the economic effects of BTAs vary
somewhat depending on how they are implemented, their welfare impact is
typically small, and slightly negative at the world level. Third, and
perhaps more strikingly, BTAs do not necessarily curb the output losses
incurred by the domestic Energy Intensive-Industries (EIIs) they are
intended to protect in the first place. This is in part because EIIs in
industrialized countries make important use of carbon-intensive
intermediate inputs produced by EIIs in other geographical areas. Another,
deeper explanation is that EIIs are ultimately more adversely affected by
the existence of a carbon price itself than by any international
competitiveness losses. These findings are shown to be robust to key model
parameters, country coverage, targets and design features of BTAs.
Journal: Applied Economics
Pages: 2231-2240
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.659346
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659346
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2231-2240
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Ebeke
Author-X-Name-First: Christian
Author-X-Name-Last: Ebeke
Author-Name: Jean-Louis Combes
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Combes
Title: Do remittances dampen the effect of natural disasters on output growth volatility in developing countries?
Abstract:
This article examines whether or not remittance inflows help mitigate the
effects of natural disasters on the volatility of the real output per
capita growth rate. Using a large sample of developing countries and
mobilizing a dynamic panel data framework, it uncovers a diminishing
macroeconomic destabilizing consequence of natural disasters as remittance
inflows rise. It appears that the effect of natural disasters disappears
for a remittance ratio above 8% of the Gross Domestic Product (GDP).
However, remittances aggravate the destabilizing effects of natural
disasters when they exceed 17% of the GDP. Finally, the article shows that
current and lagged remittance inflows significantly reduce the number of
people killed by natural disasters and the number of people affected,
respectively.
Journal: Applied Economics
Pages: 2241-2254
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.659347
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659347
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2241-2254
Template-Type: ReDIF-Article 1.0
Author-Name: Anton Paulrud
Author-X-Name-First: Anton
Author-X-Name-Last: Paulrud
Author-Name: Thomas Laitila
Author-X-Name-First: Thomas
Author-X-Name-Last: Laitila
Title: A cost-benefit analysis of restoring the Em River in Sweden: valuation of angling site characteristics and visitation frequency
Abstract:
This article uses Cost-Benefit Analysis (CBA) to evaluate restoration
scenarios aimed at improving angling on the Em River in Sweden. We find
that none of the proposed projects are socially profitable when
considering only values associated with angling. We rely on a Choice
Experiment (CE) to derive utilities and estimate the monetary value of
angling site characteristics and then also use the utilities derived in a
visitation frequency using a two-stage budgeting approach. The visitation
frequency is then used to extract values for fishing license sales and
business-related income. The case study illustrates how CBA can provide
useful insights into the potential economic returns of environmental
restoration projects. Our case study also indicates that the results in
terms of Willingness-To-Pay (WTP) and visitation frequency are general
findings -- i.e. they appear similar across angling sites -- which is
particularly useful from a policy point of view because it supports the
use of benefit transfer for more cost-effective river management.
Journal: Applied Economics
Pages: 2255-2266
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.659348
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659348
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2255-2266
Template-Type: ReDIF-Article 1.0
Author-Name: Tim Oliver Berg
Author-X-Name-First: Tim Oliver
Author-X-Name-Last: Berg
Title: Cross-country evidence on the relation between stock prices and the current account
Abstract:
This article explores the relation between stock prices and the current
account for 17 Organization for Economic Co-operation and Development
(OECD) countries in 1980--2007. A panel Vector Autoregressive (VAR) model
is used to compare the effects of stock price shocks to those originating
from monetary policy and exchange rates. While monetary policy shocks have
little effects, shocks to stock prices and exchange rates have sizeable
effects. A 10% contraction in stock prices improves the current account by
0.3% after 2 years. Hence a channel -- in addition to the traditional
exchange rate channel -- is found through which external balance for an
OECD country with a current account imbalance can be restored.
Journal: Applied Economics
Pages: 2267-2277
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.659349
File-URL: http://hdl.handle.net/10.1080/00036846.2012.659349
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2267-2277
Template-Type: ReDIF-Article 1.0
Author-Name: Hwa-Taek Lee
Author-X-Name-First: Hwa-Taek
Author-X-Name-Last: Lee
Author-Name: Gawon Yoon
Author-X-Name-First: Gawon
Author-X-Name-Last: Yoon
Title: Does purchasing power parity hold sometimes? Regime switching in real exchange rates
Abstract:
Standard unit root tests are not very powerful in drawing conclusions
regarding the validity of Purchasing Power Parity (PPP). Rather than
asking whether PPP holds throughout the whole sample period, we examine,
in this study, if PPP holds sometimes by employing Hamilton-type (1989)
Markov regime switching models. When at least one of multiple regimes is
stationary, PPP holds locally within the regime. There are indeed various
reasons that we should expect that the persistence of real exchange rates
changes over time. Employing five real exchange rates spanning more than
100 years, we find herein strong evidence that the strength of PPP varies
during the sample periods and that there exist stationary regimes in which
PPP holds. Throughout the article, we also make comparisons to previous
Markov regime switching estimation results by Kanas (2006) on the same
data series. The new Markov switching model selection criterion of Smith
et al. (2006), which is devised especially for
discriminating Markov regime switching models, unambiguously indicates a
preference for the Hamilton-type Markov regime switching model employed in
this study. We also find that the evidence for PPP is not much different
across different nominal exchange rate arrangements.
Journal: Applied Economics
Pages: 2279-2294
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.661399
File-URL: http://hdl.handle.net/10.1080/00036846.2012.661399
File-Format: text/html
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2279-2294
Template-Type: ReDIF-Article 1.0
Author-Name: O. Damette
Author-X-Name-First: O.
Author-X-Name-Last: Damette
Author-Name: V. Fromentin
Author-X-Name-First: V.
Author-X-Name-Last: Fromentin
Title: Migration and labour markets in OECD countries: a panel cointegration approach
Abstract:
This article examines the interaction between immigration and the host
labour market of 14 Organization for Economic Co-operation and Development
(OECD) countries using nonstationary panel data methodology. We estimate a
trivariate Vector Error Correction Model (VECM) and derive causality tests
to simultaneously assess the long- and short-term macroeconomic impact of
newcomers on wages and unemployment levels in the host country. The
results suggest that an increase of migrants is likely to increase wages
in the destination countries in the short run but to increase them in the
long run. There is no evidence of adverse effects on unemployment due to
immigration in short and long-term except for Anglo-Saxon countries in the
short term. Our findings also show that immigration is conditioned by
levels of unemployment and wages especially in Anglo-Saxon countries.
Journal: Applied Economics
Pages: 2295-2304
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.661400
File-URL: http://hdl.handle.net/10.1080/00036846.2012.661400
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2295-2304
Template-Type: ReDIF-Article 1.0
Author-Name: Ananda Jayawickrama
Author-X-Name-First: Ananda
Author-X-Name-Last: Jayawickrama
Author-Name: Tilak Abeysinghe
Author-X-Name-First: Tilak
Author-X-Name-Last: Abeysinghe
Title: The experience of some OECD economies on tax smoothing
Abstract:
Observed random walk behaviour of a tax rate does not necessarily support
the tax smoothing hypothesis though the latter implies the former. This
article presents a direct test of tax smoothing by showing that if the tax
smoothing hypothesis holds then the future tax rate should cointegrate
with the current permanent government expenditure rate even though the tax
rate is a random walk. This test is a direct and robust test of a number
of ‘random walk models’ available in the literature. This
procedure also enables us to differentiate among ‘strong tax
smoothing’, ‘weak tax smoothing’ and ‘no-tax
smoothing’, all of which are consistent with the random walk
behaviour of a tax rate. Application of this test to Australia, Canada,
Italy, Japan, the Netherlands, New Zealand, the UK and the US show
evidence in support of weak forms of tax smoothing.
Journal: Applied Economics
Pages: 2305-2313
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.663472
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663472
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2305-2313
Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Nidhi Thakur
Author-X-Name-First: Nidhi
Author-X-Name-Last: Thakur
Author-Name: Mengzhi Xie
Author-X-Name-First: Mengzhi
Author-X-Name-Last: Xie
Title: A hedonic price analysis of hearing aid technology
Abstract:
In this article, we study how technological components affect the price
of hearing aids. The main goals are to determine which functional and
technological features have the greatest influence on manufacturer-based
prices in the hearing aid industry, and to analyse the price-cost margins
at the dispenser level using a unique data set that is compiled from a
hearing clinic in West Texas. The result shows that style and signal
processing scheme are the two most important determinants of hearing aid
price. Other characteristics such as directional microphone, noise
cancellation, and a certain shell type are also positively related to
price. Further, on average, this particular local dispenser has a markup
of about 35% per hearing instrument.
Journal: Applied Economics
Pages: 2315-2323
Issue: 16
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.663473
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663473
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Handle: RePEc:taf:applec:45:y:2013:i:16:p:2315-2323
Template-Type: ReDIF-Article 1.0
Author-Name: Laura de Dominicis
Author-X-Name-First: Laura
Author-X-Name-Last: de Dominicis
Author-Name: Raymond J.G.M. Florax
Author-X-Name-First: Raymond J.G.M.
Author-X-Name-Last: Florax
Author-Name: Henri L.F. de Groot
Author-X-Name-First: Henri L.F.
Author-X-Name-Last: de Groot
Title: Regional clusters of innovative activity in Europe: are social capital and geographical proximity key determinants?
Abstract:
Finding proper policy instruments to promote productivity growth features
prominently in the Europe 2020 strategy and is central in many national as
well as European policy debates. In view of the increased mobility of
high-skilled workers in Europe, ongoing globalization and increased
interregional and international co-operation, location patterns of
innovative activity may be subject to drastic changes. A proper
understanding of location patterns of innovative outputs can enhance the
effectiveness and efficiency of national and European placed-based
innovation policies. Building on the literature on the knowledge
production function, the aim of this article is to explain the observed
differences in the production of innovative outputs across European
regions. Our main research question is whether geographical proximity and
social capital are important vehicles of knowledge transmission in Europe.
Several other variables are used to control for structural differences
across European regions. We find support for the hypothesis that both
social capital and geographical proximity are important factors in
explaining the observed differences in the production of innovative output
across European regions.
Journal: Applied Economics
Pages: 2325-2335
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.663474
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663474
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2325-2335
Template-Type: ReDIF-Article 1.0
Author-Name: Shinji Yane
Author-X-Name-First: Shinji
Author-X-Name-Last: Yane
Author-Name: Sanford Berg
Author-X-Name-First: Sanford
Author-X-Name-Last: Berg
Title: Sensitivity analysis of efficiency rankings to distributional assumptions: applications to Japanese water utilities
Abstract:
This article examines the robustness of efficiency score rankings across
four distributional assumptions for trans-log stochastic
production-frontier models, using data from 1221 Japanese water utilities
(for 2004 and 2005). One-sided error terms considered include the
half-normal, truncated normal, exponential and gamma distributions.
Results are compared for homoscedastic and doubly heteroscedastic models,
where we also introduce a doubly heteroscedastic variable mean model, and
examine the sensitivity of the nested models to a stronger
heteroscedasticity correction for the one-sided error component. The
results support three conclusions regarding the sensitivity of efficiency
rankings to distributional assumptions. When four standard distributional
assumptions are applied to a homoscedastic stochastic frontier model, the
efficiency rankings are quite consistent. When those assumptions are
applied to a doubly heteroscedastic stochastic frontier model, the
efficiency rankings are consistent when proper and sufficient arguments
for the variance functions are included in the model. When a more general
model, like a variable mean model is estimated, efficiency rankings are
quite sensitive to heteroscedasticity correction schemes.
Journal: Applied Economics
Pages: 2337-2348
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.663475
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663475
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2337-2348
Template-Type: ReDIF-Article 1.0
Author-Name: Vicente Salas-Fumás
Author-X-Name-First: Vicente
Author-X-Name-Last: Salas-Fumás
Author-Name: J. Javier Sanchez-Asin
Author-X-Name-First: J. Javier
Author-X-Name-Last: Sanchez-Asin
Title: The management function of entrepreneurs and countries’ productivity growth
Abstract:
This article examines the determinants of the equilibrium number of
entrepreneurs and the level of productivity in economies where individuals
make occupational choices between being self-employed or working as an
employee. The results of the theoretical model explain some observed
empirical regularities, such as the negative association between
productivity and self-employment rates in cross-country data. The article
also derives and empirically tests an unexplored relationship between
entrepreneurship and economic growth, in the form of a positive
association between productivity growth in t and the
proportion of the self-employed in
t − 1, providing a new perspective
on cross-country productivity convergence over time.
Journal: Applied Economics
Pages: 2349-2360
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.663476
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663476
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2349-2360
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Malgarini
Author-X-Name-First: Marco
Author-X-Name-Last: Malgarini
Author-Name: Massimo Mancini
Author-X-Name-First: Massimo
Author-X-Name-Last: Mancini
Author-Name: Lia Pacelli
Author-X-Name-First: Lia
Author-X-Name-Last: Pacelli
Title: Temporary hires and innovative investments
Abstract:
The flexicurity approach claims a positive effect of flexible labour on
firm performance, also through an increased ability to innovate. Critics
consider it a deregulation of the labour market, decreasing investment in
human capital and innovation. We contribute to this broad debate providing
an estimate of the relationships linking innovative investment,
substitution investment, permanent hires and temporary hires. In
particular, we aim at affirming or denying that innovative investments are
accompanied by a specific kind of workforce, being it stable or flexible.
In doing so, we contribute to bridge the gap among two quite separate
strands of literature, as existing literature usually analyses capital and
labour separately. Estimating a nonlinear recursive equation system we
highlight a significant increase in the likelihood of hiring on a
permanent base when the firm innovates; this holds till 2008. Afterward,
during the crisis, innovating firms are more likely to hire using
temporary contracts instead, a possible signal of a cost saving strategy
adopted in a loose labour market by firms still able to innovate.
Furthermore, both permanent and temporary hires never depend on increases
in labour costs; however, substitution investment increases when labour
cost increases, maybe in an attempt to increase labour productivity
through a more efficient capital equipment.
Journal: Applied Economics
Pages: 2361-2370
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.663477
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663477
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2361-2370
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Pierdzioch
Author-X-Name-First: Christian
Author-X-Name-Last: Pierdzioch
Author-Name: Jan-Christoph Rülke
Author-X-Name-First: Jan-Christoph
Author-X-Name-Last: Rülke
Author-Name: Georg Stadtmann
Author-X-Name-First: Georg
Author-X-Name-Last: Stadtmann
Title: Oil price forecasting under asymmetric loss
Abstract:
Based on the approach developed by Elliott et al.
(2005), we found that the loss function of a sample of oil price
forecasters is asymmetric in the forecast error. Our findings indicate
that the loss oil price forecasters incurred when their forecasts exceeded
the price of oil tended to be larger than the loss they incurred when
their forecast fell short of the price of oil. Accounting for the
asymmetry of the loss function does not necessarily make forecasts look
rational.
Journal: Applied Economics
Pages: 2371-2379
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.663478
File-URL: http://hdl.handle.net/10.1080/00036846.2012.663478
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2371-2379
Template-Type: ReDIF-Article 1.0
Author-Name: E. H. Ergeç
Author-X-Name-First: E. H.
Author-X-Name-Last: Ergeç
Author-Name: B. G. Arslan
Author-X-Name-First: B. G.
Author-X-Name-Last: Arslan
Title: Impact of interest rates on Islamic and conventional banks: the case of Turkey
Abstract:
Identifying the impact of the interest rates upon Islamic banks is a key
to understand the contribution of such institutions to the financial
stability, designing monetary policies and devising a proper risk
management applicable to these institutions. This article analyses and
investigates the impact of interest rate shock upon the deposits and loans
held by the conventional and Islamic banks with particular reference to
the period between December 2005 and July 2009 based on Vector Error
Correction (VEC) methodology. It is theoretically expected that the
Islamic banks, relying on interest-free banking, shall not be affected by
the interest rates; however, in concurrence with the previous studies, the
article finds that the Islamic banks in Turkey are visibly influenced by
interest rates.
Journal: Applied Economics
Pages: 2381-2388
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665598
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665598
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2381-2388
Template-Type: ReDIF-Article 1.0
Author-Name: Parjiono
Author-X-Name-First:
Author-X-Name-Last: Parjiono
Author-Name: A.B.M. Rabiul Alam Beg
Author-X-Name-First: A.B.M. Rabiul Alam
Author-X-Name-Last: Beg
Author-Name: Richard Monypenny
Author-X-Name-First: Richard
Author-X-Name-Last: Monypenny
Title: The driving forces of the level and the growth rate of real per capita income in Indonesia
Abstract:
We investigate the driving forces behind the level and the growth rate in
real per capita Gross Domestic Product (GDP) in Indonesia. The ultimate
reasons and the proximate causes underlying Indonesia's economic growth
since the mid-1960s are still unclear. In the literature there have been
at least three ways of investigating the driving forces of economic growth
in Indonesia, namely: growth accounting system, regression and causality.
The difference and improvement in this article is that we employed a
two-step bounds testing approach to cointegration, which has not been done
before; it uses the endogenous growth model to consider 12 policy
variables and two external factors that potentially affect per capita
income, this number is more than that has been done before. The empirical
results that we obtained using this two-step bounds testing approach help
us draw policy implications that if or when implemented would be expected
to increase the growth of real per capita income, as well as the welfare
of the people of Indonesia. Economic growth in Indonesia is largely driven
by government policy, so the ability to increase Indonesia's economic
growth rate, in the long run, will largely depend on the implementation of
appropriate government policies.
Journal: Applied Economics
Pages: 2389-2400
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665599
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665599
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2389-2400
Template-Type: ReDIF-Article 1.0
Author-Name: Kristof De Witte
Author-X-Name-First: Kristof
Author-X-Name-Last: De Witte
Author-Name: Mika Kortelainen
Author-X-Name-First: Mika
Author-X-Name-Last: Kortelainen
Title: What explains the performance of students in a heterogeneous environment? Conditional efficiency estimation with continuous and discrete environmental variables
Abstract:
Efficiency estimations which do not account for the operational
environment where production units are operating in may have only a
limited value. This article presents a fully nonparametric framework to
estimate relative performance of production units when accounting for
continuous and discrete background variables. Using insights from recent
developments in nonparametric econometrics, we show how conditional
efficiency scores can be estimated using a tailored mixed kernel function
with a data-driven bandwidth selection. The methodology is applied to the
sample of Dutch pupils from the Organization for Economic Co-operation and
Development's Programme for International Student Assessment (OECD PISA)
data set. We estimate students' performance and the influence of its
background characteristics. The results of our application show that
several family- and student-specific characteristics have a statistically
significant effect on the educational efficiency, while school-level
variables do not have impact on performance.
Journal: Applied Economics
Pages: 2401-2412
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665602
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665602
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2401-2412
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony J. Makin
Author-X-Name-First: Anthony J.
Author-X-Name-Last: Makin
Author-Name: Sam Strong
Author-X-Name-First: Sam
Author-X-Name-Last: Strong
Title: New measures of factor productivity in Australia: a Sato approach
Abstract:
This article derives new results of the Elasticity of Substitution (ES)
between capital and labour and factor productivity for Australia, an
economy which experienced major economic reform that substantially
increased the flexibility of its labour, product and capital markets
throughout the 1980s and 1990s. It employs a Sato production function
specification which has unique properties that enable the estimation of
capital--labour substitution elasticity and changing marginal
productivities through time. These estimates reveal that the substitution
elasticity and labour productivity in Australia rose significantly from
the mid-1960s and remained elevated during the economic reform period. A
novel contribution of this article is the depiction of Australia's
production isoquants to convey how combining labour and capital to produce
real Gross Domestic Product (GDP) has changed over recent decades.
Journal: Applied Economics
Pages: 2413-2422
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665603
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665603
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2413-2422
Template-Type: ReDIF-Article 1.0
Author-Name: Horst Rottmann
Author-X-Name-First: Horst
Author-X-Name-Last: Rottmann
Author-Name: Timo Wollmershäuser
Author-X-Name-First: Timo
Author-X-Name-Last: Wollmershäuser
Title: A micro data approach to the identification of credit crunches
Abstract:
This article presents a micro data approach to the identification of
credit crunches. Using a survey among German firms which regularly queries
the firms' assessment of the current willingness of banks to extend
credit, we estimate the probability of a restrictive loan supply policy by
time taking into account the creditworthiness of borrowers.
Creditworthiness is approximated by firm-specific factors, e.g. the firms'
assessment of their current business situation and their business
expectations. After controlling for the return on the banks' risk-free
investment alternative, which is also likely to affect the supply of
loans, we derive a credit crunch indicator, which measures that part of
the shift in the loan supply that is neither explained by firm-specific
factors nor by the opportunity costs of providing risky loans.
Journal: Applied Economics
Pages: 2423-2441
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665604
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665604
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2423-2441
Template-Type: ReDIF-Article 1.0
Author-Name: Michał Gradzewicz
Author-X-Name-First: Michał
Author-X-Name-Last: Gradzewicz
Author-Name: Krzysztof Makarski
Author-X-Name-First: Krzysztof
Author-X-Name-Last: Makarski
Title: The business cycle implications of the euro adoption in Poland
Abstract:
This article analyses the macroeconomic impact of the loss of autonomous
monetary policy after the euro adoption in Poland. Using a two-country
Dynamic Stochastic General Equilibrium (DSGE) model with sticky prices and
wages, we find that the euro adoption will have a noticeable impact on the
magnitude of economic fluctuations. In particular, the volatility of
output, interest rate, consumption and employment is expected to increase
while the volatility of inflation should decrease. Also, in order to
quantify the effect of the euro adoption, we compute the welfare effect of
this monetary policy change. Our findings suggest that the welfare cost is
not large.
Journal: Applied Economics
Pages: 2443-2455
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.667550
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667550
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2443-2455
Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Mussini
Author-X-Name-First: Mauro
Author-X-Name-Last: Mussini
Title: A matrix approach to the Gini index decomposition by subgroup and by income source
Abstract:
The literature offers two main ways of decomposing the Gini index:
decomposition by population subgroup and by income source. This article
proposes merging the two decomposition dimensions by suggesting a matrix
formula for the Gini index which permits the simultaneous decomposition by
subgroup and by income source. Using this multi‐decomposition, one
can investigate the role of the interaction between the subgroup and the
source components in determining the overall inequality. We apply the
methodology to sample data on Italian household incomes collected in 2008.
Journal: Applied Economics
Pages: 2457-2468
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.667553
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667553
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2457-2468
Template-Type: ReDIF-Article 1.0
Author-Name: Kazumasa Oguro
Author-X-Name-First: Kazumasa
Author-X-Name-Last: Oguro
Author-Name: Takashi Oshio
Author-X-Name-First: Takashi
Author-X-Name-Last: Oshio
Author-Name: Junichiro Takahata
Author-X-Name-First: Junichiro
Author-X-Name-Last: Takahata
Title: Ability transmission, endogenous fertility and educational subsidy
Abstract:
In this study, we attempt to investigate how educational subsidy,
childcare allowance and family allowance affect economic growth and income
distribution on the basis of simulation models which incorporate
intergenerational ability transmission and endogenous fertility. The
simulation results show that financial support for higher education can
both increase economic growth and reduce income inequality, especially if
the abilities of parent and child are closely correlated. In contrast with
educational subsidy, raising childcare allowance or family allowance has
limited impacts on growth and income inequality.
Journal: Applied Economics
Pages: 2469-2479
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.667554
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667554
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2469-2479
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin F. Forbes
Author-X-Name-First: Kevin F.
Author-X-Name-Last: Forbes
Author-Name: Ernest M. Zampelli
Author-X-Name-First: Ernest M.
Author-X-Name-Last: Zampelli
Title: The impacts of religion, political ideology, and social capital on religious and secular giving: evidence from the 2006 Social Capital Community Survey
Abstract:
Using a double hurdle model and data from the 2006 Social Capital
Community Survey (SCCS2006) we examine religious and secular giving,
focusing on the impacts of religion, political ideology and social
capital. Our main results indicate that greater participation in religious
activities positively impacts religious and secular giving, the intensity
of religious belief increases religious giving at the expense of secular
giving, religious giving by very conservative individuals is higher than
for other ideological groups, and measures of social capital are very
important in raising the level and likelihood of philanthropic giving.
Journal: Applied Economics
Pages: 2481-2490
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.667555
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667555
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2481-2490
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Larry Li
Author-X-Name-First: Larry
Author-X-Name-Last: Li
Title: An operational risk profile: the experience of British firms
Abstract:
This study provides an analysis of 163 operational loss events
experienced by a variety of British firms over the period 1999--2008. 10
different hypotheses are tested to examine the distribution of loss
severity and frequency with respect to business line, event type and
corporate entity type. We also test hypotheses on the relation between
loss severity and the decline in the market value of the announcing firm
and whether or not the decline in market value is greater if the loss
results from internal fraud. The results indicate that loss severity does
not depend on firm size, that the decline in market value bears no stable
relation to the loss amount and that they decline in market value relative
to the loss amount is positively related to firm size.
Journal: Applied Economics
Pages: 2491-2500
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.667556
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667556
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2491-2500
Template-Type: ReDIF-Article 1.0
Author-Name: Ari Aisen
Author-X-Name-First: Ari
Author-X-Name-Last: Aisen
Author-Name: David Hauner
Author-X-Name-First: David
Author-X-Name-Last: Hauner
Title: Budget deficits and interest rates: a fresh perspective
Abstract:
We extend the literature on budget deficits and interest rates in three
ways: we examine both advanced and emerging economies and for the first
time a large emerging market panel; explore interactions to explain some
of the heterogeneity in the literature; and apply system Generalized
Method of Moments (GMM). There is overall a highly significant positive
effect of budget deficits on interest rates, but the effect depends on
interaction terms and is only significant under one of the several
conditions: deficits are high, mostly domestically financed, or interact
with high domestic debt; financial openness is low; interest rates are
liberalized; or financial depth is low.
Journal: Applied Economics
Pages: 2501-2510
Issue: 17
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.667557
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667557
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Handle: RePEc:taf:applec:45:y:2013:i:17:p:2501-2510
Template-Type: ReDIF-Article 1.0
Author-Name: Dandan Liu
Author-X-Name-First: Dandan
Author-X-Name-Last: Liu
Author-Name: Dennis W. Jansen
Author-X-Name-First: Dennis W.
Author-X-Name-Last: Jansen
Title: The effects of monetary policy using structural factor analysis
Abstract:
The traditional Vector Autoregression (VAR) method is widely
used to trace out the effects of monetary policy innovations on the
economy. However, this method suffers from the curse of dimensionality, so
that in practice VARs are estimated on a limited number of variables,
leading to a potential missing information problem. In this article we use
the method of structural factor analysis to evaluate the effects of
monetary policy on key macroeconomic variables in a data rich environment.
This methodology allows us to extract information on monetary policy and
its impact on the economy from a much larger data set than is possible
with the traditional VAR method. We propose two structural factor models.
One is the Structural Factor Augmented Vector Autoregressive (SFAVAR)
model and the other is the Structural Factor Vector Autoregressive (SFVAR)
model. Compared to the traditional VAR, both models incorporate
information from hundreds of data series, series that can be and are
monitored by the central bank in setting policy. Moreover, the factors
used are structurally meaningful, a feature that adds to the understanding
of the 'black box' of the monetary transmission mechanism. Both models
generate qualitatively reasonable impulse response functions. For the
SFVAR model, both the price puzzle and the liquidity puzzle are
eliminated.
Journal: Applied Economics
Pages: 2511-2526
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.669462
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669462
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2511-2526
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Tzioumis
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Tzioumis
Title: Are company founders underpaid?
Abstract:
This article examines the relation between founder status and
CEO compensation in publicly listed US firms. The results suggest that
CEO/founders receive lower cash pay and total compensation compared to
professional managers. In contrast, CEOs who are relatives of the founders
receive similar cash pay and total compensation to that of professional
managers. Different compensation levels also emerge in terms of stock
option awards. The findings underline the importance of distinguishing
among these three CEO types when examining the determinants of executive
compensation.
Journal: Applied Economics
Pages: 2527-2536
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.669463
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669463
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2527-2536
Template-Type: ReDIF-Article 1.0
Author-Name: Ndahiriwe Kasa
Author-X-Name-First: Ndahiriwe
Author-X-Name-Last: Kasa
Author-Name: Ruthira Naraidoo
Author-X-Name-First: Ruthira
Author-X-Name-Last: Naraidoo
Title: The opportunistic approach to monetary policy and financial market conditions
Abstract:
We test the concept of the opportunistic approach to monetary
policy in South Africa post-2000 inflation targeting regime. The article
contributes to the current debate on central banks having additional
objectives over and above inflation and output by incorporating a measure
of financial conditions in the modelling framework. Our findings support
the two features of the opportunistic approach. First, we find that the
models that include an intermediate target that reflects the recent
history of inflation rather than simple inflation target improve the fit
of the models. Second, the data supports the view that the South African
Reserve Bank (SARB) behaves with some degree of nonresponsiveness when
inflation is within the zone of discretion but react aggressively
otherwise. Recursive estimates from our preferred model reveal that
overall there has been a subdued reaction to inflation, output and
financial conditions amidst the increased economic uncertainty of the
2007--2009 financial crisis.
Journal: Applied Economics
Pages: 2537-2545
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.669464
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669464
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2537-2545
Template-Type: ReDIF-Article 1.0
Author-Name: Laura Padilla Angulo
Author-X-Name-First: Laura Padilla
Author-X-Name-Last: Angulo
Title: Labour inputs substitution during corporate restructuring: a translog model approach for US freight railroads
Abstract:
After deregulation in 1980, competitive pressures forced the
large US freight railroads to reduce costs and restructure, resulting in
an economic renaissance of the US railroad companies after years of poor
financial conditions. The most striking restructuring measure receiving
much attention was dramatic labour downsizing: until 2004 employment was
reduced by 60%. But other overlooked measures are the significant
restructuring of workforce composition, and important changes in
railroads' workplace organization practices and corporate culture. To
better understand this successful occupational restructuring, I
investigate labour inputs substitutional relationships by using a translog
variable cost model. Labour is decomposed into six employee categories
rather than traditional production--nonproduction breakdown to estimate
inputs elasticities of substitution. The data investigated is a unique
firm-level dataset on the US freight Class I Railroads, covering a 22-year
period, which allows this fine-grained analysis. I also document railroad
workplace organization practices relating to results and reflecting
changes in railroads corporate culture. I find strong substitutability
between managerial positions and transportation employees, pointing to
achievement of better command and control of operations; a high degree of
complementarity between the most skilled employee categories and the
strongest substitute relationship between transportation and maintenance
of Ways&Structures groups.
Journal: Applied Economics
Pages: 2547-2562
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.669465
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669465
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2547-2562
Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Alam᭓abater
Author-X-Name-First: Luisa
Author-X-Name-Last: Alam᭓abater
Author-Name: Laura MᲱuez-Ramos
Author-X-Name-First: Laura
Author-X-Name-Last: MᲱuez-Ramos
Author-Name: Celestino SuᲥz-Burguet
Author-X-Name-First: Celestino
Author-X-Name-Last: SuᲥz-Burguet
Title: Trade and transport connectivity: a spatial approach
Abstract:
This article aims to analyse whether transport connectivity
affects trade flows using a spatial approach. We consider first-order
contiguity and incorporate logistics network structure dependence in a
spatial autoregressive model. The results provide evidence regarding the
role of the location of logistics platforms for satisfying existing demand
for transport structure in Spain.
Journal: Applied Economics
Pages: 2563-2566
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.669466
File-URL: http://hdl.handle.net/10.1080/00036846.2012.669466
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2563-2566
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Buehn
Author-X-Name-First: Andreas
Author-X-Name-Last: Buehn
Author-Name: Christian Lessmann
Author-X-Name-First: Christian
Author-X-Name-Last: Lessmann
Author-Name: Gunther Markwardt
Author-X-Name-First: Gunther
Author-X-Name-Last: Markwardt
Title: Decentralization and the shadow economy: Oates meets Allingham--Sandmo
Abstract:
This article studies the impact of decentralization on the
shadow economy. We argue that decentralization may decrease the size of
the shadow economy mainly through two transmission channels: (1)
decentralization enhancing public sector efficiency (efficiency
effect), and (2) decentralization reducing the distance between
bureaucrats and economic agents, which increases the probability of
detection of shadow economic activities (deterrence
effect). Using various measures of fiscal, political and
government employment decentralization in a cross-section of countries, we
find the deterrence effect to be of more importance. The deterrence effect
is stronger, the lower the degree of institutional quality. We find no
robust evidence of the efficiency effect.
Journal: Applied Economics
Pages: 2567-2578
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.671923
File-URL: http://hdl.handle.net/10.1080/00036846.2012.671923
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2567-2578
Template-Type: ReDIF-Article 1.0
Author-Name: Gilbert Cette
Author-X-Name-First: Gilbert
Author-X-Name-Last: Cette
Author-Name: Marielle de Jong
Author-X-Name-First: Marielle
Author-X-Name-Last: de Jong
Title: Breakeven inflation rates and their puzzling correlation relationships
Abstract:
It is generally assumed that the two Fisher components of the
interest rate -- the real interest and the inflation -- evolve
independently over time, considering that they are driven by unrelated
economical events. However, the market pricing of those components deduced
from newly-available bond data does not provide conclusive evidence. While
studying the price behaviour of inflation-linked (real) bonds beside
nominal bonds in the major fixed-income markets, we observe that the Real
Bond Yields (RBY) and the yield differentials, the Breakeven Inflation
Rates (BEIR), have the propensity to be positively correlated between each
other across the various countries, yet are pushed into a negative
correlation relationship due to market-related price distortions. As long
as those distortions are local, the net result is near-zero correlation
within countries; when they become global, as in the heat of the current
crisis, the correlations turn negative worldwide. In this article insight
is gained by taking an innovative worldwide study approach and thanks to
revealing crisis period events.
Journal: Applied Economics
Pages: 2579-2585
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.671924
File-URL: http://hdl.handle.net/10.1080/00036846.2012.671924
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2579-2585
Template-Type: ReDIF-Article 1.0
Author-Name: Didier Fouarge
Author-X-Name-First: Didier
Author-X-Name-Last: Fouarge
Author-Name: Trudie Schils
Author-X-Name-First: Trudie
Author-X-Name-Last: Schils
Author-Name: Andries de Grip
Author-X-Name-First: Andries
Author-X-Name-Last: de Grip
Title: Why do low-educated workers invest less in further training?
Abstract:
Several studies document that low-educated workers
participate less often in further training than high-educated workers.
This article investigates two possible explanations: low-educated workers
invest less in training because of (1) the lower economic returns to these
investments or (2) their lower willingness to participate in training.
Controlling for unobserved heterogeneity, we find that the economic
returns to training for low-educated workers are positive and not
significantly different from those for high-educated workers. However,
low-educated workers are significantly less willing to participate in
training. We show that this lesser willingness to train is driven by
economic preferences, and personality traits.
Journal: Applied Economics
Pages: 2587-2601
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.671926
File-URL: http://hdl.handle.net/10.1080/00036846.2012.671926
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2587-2601
Template-Type: ReDIF-Article 1.0
Author-Name: Lilia Cavallari
Author-X-Name-First: Lilia
Author-X-Name-Last: Cavallari
Author-Name: Stefano d'Addona
Author-X-Name-First: Stefano
Author-X-Name-Last: d'Addona
Title: Nominal and real volatility as determinants of FDI
Abstract:
This article examines the role of country-specific sources of
output and interest rate or exchange rate volatility in driving Foreign
Direct Investment (FDI) activities. Building on a dataset with bilateral
FDI flows among 24 Organization for Economic Co-operation and Development
(OECD) economies over the period 1985--2007, we find that nominal and real
volatility strongly deter foreign investments. Output and exchange rate
volatility matter in particular for the decision whether to invest in a
foreign country in the first place. Interest rate volatility mainly
influences the amount of foreign investments.
Journal: Applied Economics
Pages: 2603-2610
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.674206
File-URL: http://hdl.handle.net/10.1080/00036846.2012.674206
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2603-2610
Template-Type: ReDIF-Article 1.0
Author-Name: Hooi Hooi Lean
Author-X-Name-First: Hooi Hooi
Author-X-Name-Last: Lean
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Do Malaysian house prices follow a random walk? Evidence from univariate and panel LM unit root tests with one and two structural breaks
Abstract:
In this article we apply univariate and panel Lagrange
Multiplier (LM) unit root tests with one and twostructural breaks proposed
by Lee and Strazicich (2003, 2004) and Im et al.
(2005) to examine housing prices for five different housing price indices
(all housing, detached housing, semi-detached housing, terrace housing and
high-rise housing) in 14 states of Malaysia to test whether housing prices
exhibit a random walk. Our main finding from the univariate LM unit root
tests is that for the vast majority of states housing prices follow a
stationary process about a segmented trend. The results of the panel LM
unit root tests provide overwhelming evidence that house prices are
segmented trend reverting.
Journal: Applied Economics
Pages: 2611-2627
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.674207
File-URL: http://hdl.handle.net/10.1080/00036846.2012.674207
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2611-2627
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani--Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani--Oskooee
Author-Name: Scott W. Hegerty
Author-X-Name-First: Scott W.
Author-X-Name-Last: Hegerty
Author-Name: Jia Xu
Author-X-Name-First: Jia
Author-X-Name-Last: Xu
Title: Exchange--rate volatility and US--Hong Kong industry trade: is there evidence of a 'third country' effect?
Abstract:
In an effort to better understand the determinants of trade
flows worldwide, researchers have recently incorporated external
volatility (in addition to that of the partners' bilateral exchange rate)
into their models. The so--called 'third country' effect is present if
adding this term changes the bilateral volatility estimates that are found
when external volatility is omitted. This study examines US exports to
Hong Kong for 143 industries, and imports from Hong Kong for 110
industries, and finds two key results. First, expected inflation due to
Hong Kong's dollar peg leads to increased US exports in a large number of
industries. Second, comparing our results with those of a previous study
shows strong evidence of a 'third country' effect, especially for US
imports. Nonparametric tests suggest that these effects differ by sector:
for both exports and imports. Manufacturing industries that enjoy a large
trade share are less likely to experience this effect once external
volatility is incorporated into the analysis.
Journal: Applied Economics
Pages: 2629-2651
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.654918
File-URL: http://hdl.handle.net/10.1080/00036846.2012.654918
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Template-Type: ReDIF-Article 1.0
Author-Name: Åsa Marie Hansson
Author-X-Name-First: Åsa Marie
Author-X-Name-Last: Hansson
Author-Name: Karin Olofsdotter
Author-X-Name-First: Karin
Author-X-Name-Last: Olofsdotter
Title: FDI, taxes and agglomeration economies in the EU15
Abstract:
This article provides an empirical analysis of the impact of
tax differentials and agglomeration economies on Foreign Direct Investment
(FDI). The article departs from most previous work on FDI and tax
competition in a number of ways. First, it incorporates several measures
of agglomeration in order to investigate whether agglomeration economies
mitigate the downward spiral in tax rates. As the strength of
agglomeration economies may vary with the degree of integration, we use a
panel of bilateral FDI flows for a highly integrated region including
countries with similar economic structure -- the EU15 -- from 1986 to
2004. Second, the empirical analysis explicitly deals with the problem of
selection bias by using the Heckman sample selection approach. Also, by
focusing on the EU15, we are able to provide additional information on the
determinants of FDI between similar, higher-income countries. The
empirical analysis provides some evidence of corporate marginal effective
tax rates having an impact on FDI. This result, however, is sensitive to
the inclusion of agglomeration economies. In particular, we find both
Marshall types of technological externalities and overall concentration of
economic activity to have an influence on FDI flows and, moreover,
mitigating the negative impact of taxes.
Journal: Applied Economics
Pages: 2653-2664
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665596
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665596
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2653-2664
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgia Giovannetti
Author-X-Name-First: Giorgia
Author-X-Name-Last: Giovannetti
Author-Name: Giorgio Ricchiuti
Author-X-Name-First: Giorgio
Author-X-Name-Last: Ricchiuti
Author-Name: Margherita Velucchi
Author-X-Name-First: Margherita
Author-X-Name-Last: Velucchi
Title: Location, internationalization and performance of firms in Italy: a multilevel approach
Abstract:
Competition is increasingly global. However, location still
matters: often firms cluster in the same geographic areas in order to
exploit locational externalities and improve their competitiveness. This
article analyses how Italian firms' performance, proxied by their
propensity to export, depends both on geographical and institutional
context and on individual characteristics. Using a multilevel approach, we
estimate and distinguish the effect of individual (firm level) and context
(province level) variables on the performance of internationalized Italian
firms. We show that both firms and province heterogeneity shape the
results.
Journal: Applied Economics
Pages: 2665-2673
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665597
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665597
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2665-2673
Template-Type: ReDIF-Article 1.0
Author-Name: Alisher Akhmedjonov
Author-X-Name-First: Alisher
Author-X-Name-Last: Akhmedjonov
Author-Name: Marco Chi Keung Lau
Author-X-Name-First: Marco Chi Keung
Author-X-Name-Last: Lau
Author-Name: Berna Balcı İzgi
Author-X-Name-First: Berna Balcı
Author-X-Name-Last: İzgi
Title: New evidence of regional income divergence in post-reform Russia
Abstract:
This article investigates regional income convergence in
Russia during 2000--2008. We test the hypothesis in which income
divergence across regions of the country should give place to income
convergence as the country moves toward free market economy with strong
market institutions. The study contributes to the existing literature by
using the exponential smooth autoregressive Augmented Dickey--Fuller (ADF)
unit root test in a panel setup, a novel econometric technique, which
encompasses cross sectional dependence. Results show strong evidence of
on-going regional income divergence in post-reform period.
Journal: Applied Economics
Pages: 2675-2682
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665600
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665600
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2675-2682
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Huisman
Author-X-Name-First: Ronald
Author-X-Name-Last: Huisman
Author-Name: Mehtap Kili砍
Author-X-Name-First: Mehtap
Author-X-Name-Last: Kili砍
Title: A history of European electricity day-ahead prices
Abstract:
In this article, we examine the development of day-ahead
prices in five European markets which became more connected over recent
years. Where previous studies examined the convergence of price levels
over time, we focus on patterns in estimates for the parameters in a
switching regimes model. This makes it possible to distinguish between
prices under normal market conditions and under non-normal market
conditions, those market conditions that can cause extreme price spikes.
We expect that increased connectivity yields additional supply in the
short-term and therefore will reduce the impact of price spikes. Our
results indicate that the impact of price spikes and volatility decreased
over time, that prices behave more random, and that the parameter
estimates between various connected markets seem to have converged between
the Belgian, Dutch, French, German and Nordic day-ahead markets over the
years 2003 through 2010. These results can be explained by increased
connectivity and improved liquidity.
Journal: Applied Economics
Pages: 2683-2693
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2012.665601
File-URL: http://hdl.handle.net/10.1080/00036846.2012.665601
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2683-2693
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon
Author-X-Name-First: Robert
Author-X-Name-Last: Dixon
Author-Name: G. C. Lim
Author-X-Name-First: G. C.
Author-X-Name-Last: Lim
Title: A univariate model of aggregate labour productivity
Journal: Applied Economics
Pages: 2695-2695
Issue: 18
Volume: 45
Year: 2013
Month: 6
X-DOI: 10.1080/00036846.2011.652881
File-URL: http://hdl.handle.net/10.1080/00036846.2011.652881
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Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2695-2695
Template-Type: ReDIF-Article 1.0
Author-Name: Emanuele Bajo
Author-X-Name-First: Emanuele
Author-X-Name-Last: Bajo
Author-Name: Massimiliano Barbi
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Barbi
Author-Name: David Hillier
Author-X-Name-First: David
Author-X-Name-Last: Hillier
Title: Interest rate risk estimation: a new duration-based approach
Abstract:
Duration is widely used by fixed income managers to proxy the interest
rate risk of their assets and liabilities. However, it is well known that
the convexity of the price-yield relationship introduces approximation
errors that grow with changes in yield. In this article we suggest a new
approach, ‘discrete duration’, which significantly improves
upon the accuracy of traditional duration methods and achieves a level of
accuracy close to the more complex ‘duration-plus-convexity’
measure. In particular, discrete duration performs particularly well for
long dated and low coupon rate bonds where the estimation error is
impressively close to zero.
Journal: Applied Economics
Pages: 2697-2704
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.667552
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667552
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2697-2704
Template-Type: ReDIF-Article 1.0
Author-Name: Anton Bekkerman
Author-X-Name-First: Anton
Author-X-Name-Last: Bekkerman
Author-Name: Barry K. Goodwin
Author-X-Name-First: Barry K.
Author-X-Name-Last: Goodwin
Author-Name: Nicholas E. Piggott
Author-X-Name-First: Nicholas E.
Author-X-Name-Last: Piggott
Title: A variable threshold band approach to measuring market linkages
Abstract:
Uncertain and changing economic conditions can have substantial effects
on price relationships in spatially separated, linked markets. Although
numerous studies have analysed price relationships to characterize market
linkage structures, most assume that the relationships and associated
linkages are time invariant. This study extends the literature by
modelling and estimating time-dependent market linkages that are
conditional on changes in exogenous factors. The methodology is used to
investigate price relationships in North Carolina (NC) corn and soya bean
markets. Empirical results indicate that generalized market-linkage models
provide a better representation of price relationships over time,
improving the understanding of price discovery dynamics and marketing
strategies.
Journal: Applied Economics
Pages: 2705-2714
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.671925
File-URL: http://hdl.handle.net/10.1080/00036846.2012.671925
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2705-2714
Template-Type: ReDIF-Article 1.0
Author-Name: Sanna-Mari Hynninen
Author-X-Name-First: Sanna-Mari
Author-X-Name-Last: Hynninen
Author-Name: Terhi Maczulskij
Author-X-Name-First: Terhi
Author-X-Name-Last: Maczulskij
Title: Spot market wages, implicit contracts and technological change: skill-level evidence from Finland
Abstract:
This article investigates the relevance of the theories of implicit
contracts and spot market model to the skill-level wages in Finland. We
use linked worker-firm panel data over the period from 1991 to 2004, which
included major institutional and technological changes. We find similar
patterns in the wage flexibility of primary and highly educated workers:
their wages increased with the decreasing spot market unemployment rate
after the EU membership still exhibiting some weak backward linkages. The
wages of the secondary-educated did not follow the decreasing spot market
unemployment, but instead some signs of the full commitment risk sharing
were found.
Journal: Applied Economics
Pages: 2715-2723
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.674205
File-URL: http://hdl.handle.net/10.1080/00036846.2012.674205
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2715-2723
Template-Type: ReDIF-Article 1.0
Author-Name: Rita Soares
Author-X-Name-First: Rita
Author-X-Name-Last: Soares
Title: Assessing monetary policy in the euro area: a factor-augmented VAR approach
Abstract:
In order to overcome the omitted information problem of small-scale
Vector Autoregression (VAR) models, this study combines the VAR
methodology with dynamic factor analysis and assesses the effects of
monetary policy shocks in the euro area in the period during which there
is a single monetary policy. Using the Factor-Augmented Vector
Autoregressive (FAVAR) approach of Bernanke et al.
(2005), we summarize the information contained in a large set of
macroeconomic time series with a small number of estimated factors and use
them as regressors in recursive VARs to evaluate the impact of the
nonsystematic component of the European Central Bank's (ECB's) actions.
Overall, our results suggest that the inclusion of factors in the VAR
allows us to obtain a more coherent picture of the effects of monetary
policy innovations, both by achieving responses easier to understand from
the theoretical point of view and by increasing the precision of such
responses. Moreover, this framework allows us to compute impulse-response
functions for all the variables included in the panel, thereby providing a
more complete depiction of the effects of policy disturbances. However,
the extra information generated by the FAVAR also delivers some puzzling
responses, in particular those relating to exchange rates.
Journal: Applied Economics
Pages: 2724-2744
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.676736
File-URL: http://hdl.handle.net/10.1080/00036846.2012.676736
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Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: Does the monetary policy committee still care about inflation? Some evidence from a small macroeconomic model
Abstract:
This article derives an optimal Taylor rule for the UK economy using a
simple estimated model based on data prior to the financial crisis of
2008. Optimal policy rules are calculated using simulation of the model
over a long time period coupled with a search for optimal Taylor rule
parameters using the Newton-Raphson loss minimization algorithm. The
weights in the pre-crisis loss function are then inferred from the Taylor
rule parameters estimated from the period corresponding to Bank of England
independence, i.e. 1997--2008. These estimates are consistent with a low
weight on inflation relative to output stabilization even before the
crisis. The model is therefore consistent with the hypothesis that there
has been no change in Bank of England preferences and that the Bank has
responded to the crisis in a way which would have been predicted on the
basis of its pre-crisis behaviour.
Journal: Applied Economics
Pages: 2745-2750
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2011.629985
File-URL: http://hdl.handle.net/10.1080/00036846.2011.629985
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2745-2750
Template-Type: ReDIF-Article 1.0
Author-Name: Constantin Belu
Author-X-Name-First: Constantin
Author-X-Name-Last: Belu
Author-Name: Cristiana Manescu
Author-X-Name-First: Cristiana
Author-X-Name-Last: Manescu
Title: Strategic corporate social responsibility and economic performance
Abstract:
This article proposes a novel Corporate Social Responsibility (CSR) index
based on a Data Envelopment Analysis (DEA) model. Acknowledging the
argument that companies might favour those CSR dimensions that provide
strategic competitive advantages, we argue that the index can capture
companies’ strategic approach to CSR. Furthermore, our findings
reveal a neutral relationship between this strategic CSR index and
economic performance as measured by Return on Assets (ROA) and Tobin's
Q, when controlling for firm unobserved heterogeneity and
past economic performance. By contrast, an equally-weighted index of the
same CSR indicators is found to be negatively related with ROA, which
reinforces our claim that this specific DEA-based index is a measure of
strategic CSR.
Journal: Applied Economics
Pages: 2751-2764
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.676734
File-URL: http://hdl.handle.net/10.1080/00036846.2012.676734
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2751-2764
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Roma
Author-X-Name-First: Paolo
Author-X-Name-Last: Roma
Author-Name: Giuseppe Di Martino
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Di Martino
Author-Name: Giovanni Perrone
Author-X-Name-First: Giovanni
Author-X-Name-Last: Perrone
Title: What to show on the wine labels: a hedonic analysis of price drivers of Sicilian wines
Abstract:
Unlike previous literature, we construct a hedonic model of wine price
that incorporates all the main categories of variables simultaneously to
enable a better evaluation of their importance on wine price formation. A
comprehensive model has the advantage of providing more reliable estimates
of the attributes' implicit prices thereby facilitating firms' pricing and
improving effectiveness of wine production and marketing decisions. We
utilize two different datasets of Sicilian wines collecting data from
influential wine guides. Our results suggest that wine price strongly
depends on objective features such as vintage, alcoholic content,
geographical origin, grape variety, producer size and cellaring potential.
In addition, use of containers like tonneaux and barrique positively
affects prices, whereas use of concrete containers has a negative
influence. No univocal indications emerge with regard to the effect of the
type of company, type of viticulture and firm age. As for sensorial
characteristics, our analysis provides novel evidence of the importance of
olfactory variables such as aroma intensity and the presence of particular
smells in the wine. Finally, current guides’ grades and firm
reputation play a crucial role in determining wine prices as well.
Journal: Applied Economics
Pages: 2765-2778
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.678983
File-URL: http://hdl.handle.net/10.1080/00036846.2012.678983
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Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Philip Thornton
Author-X-Name-First: Jeremy Philip
Author-X-Name-Last: Thornton
Author-Name: Sara Helms
Author-X-Name-First: Sara
Author-X-Name-Last: Helms
Title: Afterlife incentives in charitable giving
Abstract:
There is an expanding literature that examines the influence of religion
on economic behaviour. Researchers typically do not distinguish among
religions, masking important variation across doctrines. Our article
adopts a typology of religions based on the construct of salvific merit.
Major religious doctrines are ordered based on their linkage between
charitable behaviour in this life and condition in the afterlife. Using
the Center on Philanthropy Panel Study (COPPS), we exploit variation in
household marginal tax rates (a subsidy to charitable giving) to test the
influence of major religious doctrines on charitable giving. We find that
charitable giving by adherents to high-salvific-merit religions are less
sensitive to changes in charitable subsidies. Adherents to
low-salvific-merit religions behave more like nonreligious households. Our
results suggest that religious households optimize according to specific
doctrines rather than a broad notion of religion.
Journal: Applied Economics
Pages: 2779-2791
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.678984
File-URL: http://hdl.handle.net/10.1080/00036846.2012.678984
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2779-2791
Template-Type: ReDIF-Article 1.0
Author-Name: Victor V. Claar
Author-X-Name-First: Victor V.
Author-X-Name-Last: Claar
Author-Name: Christine Cain
Author-X-Name-First: Christine
Author-X-Name-Last: Cain
Author-Name: Ross D. Poll
Author-X-Name-First: Ross D.
Author-X-Name-Last: Poll
Title: Spreading academic pay over nine or twelve months: economists are supposed to know better, but do they act better?
Abstract:
Our article empirically considers two general hypotheses related to the
literature of behavioural economics. First, we test the null hypothesis
that individuals behave, on average, in a manner more consistent with the
rational expectations hypothesis than with the idea of self-control in the
face of hyperbolic discounting in their saving decisions. Second, along a
variety of dimensions, we examine whether individuals exhibit Herbert
Simon's notion that the goal formation of individuals will differ
depending upon their relative levels of experience and knowledge. Perhaps
there are significant differences among groups in their saving decisions
that depend upon their apparent levels of intelligence, education and
knowledge. Finally, using a variety of individual-specific control
variables, we test for robustness of the results.
Journal: Applied Economics
Pages: 2792-2800
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.681027
File-URL: http://hdl.handle.net/10.1080/00036846.2012.681027
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2792-2800
Template-Type: ReDIF-Article 1.0
Author-Name: Eddie Chi-man Hui
Author-X-Name-First: Eddie Chi-man
Author-X-Name-Last: Hui
Author-Name: Xian Zheng
Author-X-Name-First: Xian
Author-X-Name-Last: Zheng
Author-Name: Hui Wang
Author-X-Name-First: Hui
Author-X-Name-Last: Wang
Title: Investor sentiment and risk appetite of real estate security market
Abstract:
This article proposes a new model to measure the risk appetite in absence
of option prices. Without options transaction, traditional measurements
cannot be made. This article establishes a Risk Appetite (RA) indicator by
way of change measure and simulation, with two density functions, i.e.
risk-neutral density and historical density. The RA indicators use the
data from the Property Composite Index (PCI) and the Shanghai Stock
Exchange Composite Index (SSECI). The empirical result shows that
investors involved in the real estate security market have lower RA
compared to those in the general security market. Particularly, RA
indicators for both indices started to fall markedly in early 2008 and
even more so after September 2008. The changes in RA suggest that the
overall investors’ attitudes nowadays towards China's stock market
are never as pessimistic as before.
Journal: Applied Economics
Pages: 2801-2807
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.681028
File-URL: http://hdl.handle.net/10.1080/00036846.2012.681028
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2801-2807
Template-Type: ReDIF-Article 1.0
Author-Name: Margherita Comola
Author-X-Name-First: Margherita
Author-X-Name-Last: Comola
Author-Name: Luiz de Mello
Author-X-Name-First: Luiz
Author-X-Name-Last: de Mello
Title: Salaried employment and earnings in Indonesia: new evidence on the selection bias
Abstract:
This article uses household survey data to estimate the determinants of
earnings in Indonesia, a country where nonsalaried work is widespread and
earnings data are available for salaried employees only. We deal with the
selection bias by estimating a Full-Information Maximum Likelihood (FIML)
system of equations, where selection into the labour market is modelled in
a multinomial setting. We find that some estimated parameters of the
earnings equation differ from a binomial selection procedure by Heckman
(1979), in particular for those variables with the strongest impact on the
selection into the different labour-market statuses. However, the
estimated returns to education are unaffected, even when we deal with the
endogeneity of educational attainment following Duflo (2001). Overall, our
findings show that the choice of the selection rule affects the estimates
of the earnings determinants in the Indonesian labour market.
Journal: Applied Economics
Pages: 2808-2816
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.667551
File-URL: http://hdl.handle.net/10.1080/00036846.2012.667551
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2808-2816
Template-Type: ReDIF-Article 1.0
Author-Name: Sharmistha Nag
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Nag
Author-Name: Hui Yang
Author-X-Name-First: Hui
Author-X-Name-Last: Yang
Author-Name: Steven Buccola
Author-X-Name-First: Steven
Author-X-Name-Last: Buccola
Author-Name: David Ervin
Author-X-Name-First: David
Author-X-Name-Last: Ervin
Title: Productivity and financial support in academic bioscience
Abstract:
Despite widespread awareness that scientific record and grant funding
reinforce one another, empirical models of scientific production normally
consider laboratory inputs to be exogenous. The present article employs a
cross-section of academic bioscientists to examine the mutual relationship
between research output and financial support. Information's nonrival
character is such that scientific output and funding success cannot be
expressed in strictly supply-and-demand terms. We find the typical
bioscience laboratory to operate in a range of decreasing returns to scale
and to over-invest in laboratory equipment and materials. Publication and
funding success strongly reinforce one another, explaining the
right-skewed success distributions often observed in science.
Journal: Applied Economics
Pages: 2817-2826
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.676737
File-URL: http://hdl.handle.net/10.1080/00036846.2012.676737
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2817-2826
Template-Type: ReDIF-Article 1.0
Author-Name: Gunnar Isacsson
Author-X-Name-First: Gunnar
Author-X-Name-Last: Isacsson
Author-Name: Anders Karlström
Author-X-Name-First: Anders
Author-X-Name-Last: Karlström
Author-Name: Jan-Erik Swärdh
Author-X-Name-First: Jan-Erik
Author-X-Name-Last: Swärdh
Title: The value of commuting time in an empirical on-the-job search model -- an application based on moments from two samples
Abstract:
This article estimates the Value of Commuting Time (VOCT) among Swedish
males in an empirical on-the-job search model. It uses a large sample of
employee-establishment linked data obtained from administrative registers.
The sample lacks information on mode choice for the journey to work. We
therefore estimate a mode choice model on another sample and use this
model to link the administrative data to the relevant set of travel times,
costs and distances. The VOCT is found to be 1.8 times the net hourly wage
rate in the sample. The relatively high estimate results from a high VOCT
among cohabiting men.
Journal: Applied Economics
Pages: 2827-2837
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.678981
File-URL: http://hdl.handle.net/10.1080/00036846.2012.678981
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2827-2837
Template-Type: ReDIF-Article 1.0
Author-Name: James Peery Cover
Author-X-Name-First: James Peery
Author-X-Name-Last: Cover
Author-Name: Eric Olson
Author-X-Name-First: Eric
Author-X-Name-Last: Olson
Title: Using Romer and Romer's new measure of monetary policy shocks to identify the AD and AS shocks
Abstract:
This article re-examines the series of (exogenous) Federal Funds Rate
(FFR) shocks created by Romer and Romer (2004) for the period
1969:01--1996:12. We hypothesize that if Romer and Romer have constructed
a reasonable set of monetary policy shocks, then including them in a small
Vector Autoregression (VAR) should help to identify other structural
shocks that affected the United States economy during their sample period.
Using a sample period of 1971:01--1996:12 we are easily able to identify
both an Aggregate Demand (AD) shock and an Aggregate Supply (AS) shock
without imposing any sign or long-run restrictions. We present historical
decompositions that allow us to compare the relative importance of these
shocks with that of the exogenous monetary policy shocks in explaining
output fluctuations during the 1973--1975, 1980--1984 and 1990--1991
business cycle episodes.
Journal: Applied Economics
Pages: 2838-2846
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.681029
File-URL: http://hdl.handle.net/10.1080/00036846.2012.681029
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2838-2846
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Title: Revisiting purchasing power parity for East Asian countries using the rank test for nonlinear cointegration
Abstract:
This study applies a simple and powerful nonlinear rank test, proposed by
Breitung (2001) to test the validity of long-run Purchasing Power Parity
(PPP) in a sample of East Asian countries over the period March
1985--September 2008. The empirical results indicate that PPP holds for
all of East Asian countries studied and the nominal exchange rate,
domestic Consumer Price Index (CPI) and the US CPI are all linearly
interrelated with the exception of China. Our results have important
policy implications for these East Asian countries under study.
Journal: Applied Economics
Pages: 2847-2852
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.657354
File-URL: http://hdl.handle.net/10.1080/00036846.2012.657354
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2847-2852
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Wogbe Agbola
Author-X-Name-First: Frank Wogbe
Author-X-Name-Last: Agbola
Title: Does human capital constrain the impact of foreign direct investment and remittances on economic growth in Ghana?
Abstract:
This article empirically investigates whether human capital constrains
the impact of Foreign Direct Investment (FDI) and remittances on economic
growth in Ghana. An economic growth model for Ghana is specified and
estimated using Fully Modified Ordinary Least Squares (FMOLS) estimator
and employing annual data spanning the period 1965 to 2008. Empirical
results indicate that FDI and remittances are key determinants of economic
growth in Ghana. Results indicate that human capital enhances the impact
of FDI and remittances on economic growth. Although both government
expenditure and trade openness are growth-enhancing, government
expenditure appears to crowd-out private investment. Empirical results
also indicate that domestic inflationary pressures, unstable political
environment and volatile global economy exert a negative impact on
economic growth in Ghana.
Journal: Applied Economics
Pages: 2853-2862
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.676735
File-URL: http://hdl.handle.net/10.1080/00036846.2012.676735
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2853-2862
Template-Type: ReDIF-Article 1.0
Author-Name: Susi Störmer
Author-X-Name-First: Susi
Author-X-Name-Last: Störmer
Author-Name: Ren順ahr
Author-X-Name-First: Ren頍
Author-X-Name-Last: Fahr
Title: Individual determinants of work attendance: evidence on the role of personality
Abstract:
We investigate the influence of personality as measured by the Big Five
personality scale on absenteeism using the 2005 wave of the German
Socio-Economic Panel (GSOEP). Estimates of a double hurdle negative
binomial regression allow us to test hypotheses on the influence of the
Big Five personality traits on work attendance. Our findings augment
previous results on the link between personality and absenteeism by
analysing representative data and including a large set of control
variables typically not available in small scale surveys. We find clear
negative correlations between the absence probability and
Conscientiousness among women. For male employees a
negative correlation with the incidence of absence is observed for the
Agreeableness dimension. When looking at the length of
absence occurrences Neuroticism is found to significantly
influence male absenteeism despite controlling for the subjective health
of the individual. Following the reasoning by Bowles
et al. (2001) for the provision of effort by
employees, employers might pay for incentive-enhancing preferences such as
low Neuroticism among male employees because employers
can only insufficiently monitor the true level of sickness of their
employees and consequently want to avoid voluntary absenteeism.
Journal: Applied Economics
Pages: 2863-2875
Issue: 19
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.684789
File-URL: http://hdl.handle.net/10.1080/00036846.2012.684789
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Handle: RePEc:taf:applec:v:45:y:2013:i:19:p:2863-2875
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew H. Chen
Author-X-Name-First: Andrew H.
Author-X-Name-Last: Chen
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Author-Name: Dashan Huang
Author-X-Name-First: Dashan
Author-X-Name-Last: Huang
Title: Optimal corporate strategy under uncertainty
Abstract:
Within a dynamic setting, optimal corporate strategy management for a
multi-division corporation involves restructuring a portfolio of Strategic
Business Units (SBUs) periodically so as to maximize the firm's market
value. Real option theory has been applied to model and explain managerial
flexibility for both project selection and operational decisions. In
general, optimal corporate strategy has focused on strategic environments
and characteristics of business units rather than on managerial
flexibility. In this article, we develop a feasible discrete-time model
for optimal corporate strategy that incorporates both endogenous and
exogenous factors and is consistent with the value-based criterion for
maximizing shareholders’ wealth.
Journal: Applied Economics
Pages: 2877-2882
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.684791
File-URL: http://hdl.handle.net/10.1080/00036846.2012.684791
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2877-2882
Template-Type: ReDIF-Article 1.0
Author-Name: Yung Chuan Lee
Author-X-Name-First: Yung Chuan
Author-X-Name-Last: Lee
Author-Name: Su-Lien Lu
Author-X-Name-First: Su-Lien
Author-X-Name-Last: Lu
Title: A comparative analysis of independent director appointments on stock price behaviour: an empirical investigation based on the Markov regime-switching model
Abstract:
In 2002, the Taiwanese government regulated that new companies should
appoint independent directors for good corporate governance. The purpose
of this article is to compare appointing independent directors' motivation
of structural changes in stock behaviour. The empirical results showed
that the companies with mandatory or voluntary independent director
appointments significantly reduced both stock returns and risks over
2000--2006.
Journal: Applied Economics
Pages: 2883-2893
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.687093
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687093
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2883-2893
Template-Type: ReDIF-Article 1.0
Author-Name: Kuo-Yuan Liang
Author-X-Name-First: Kuo-Yuan
Author-X-Name-Last: Liang
Author-Name: Chen-Hui Yen
Author-X-Name-First: Chen-Hui
Author-X-Name-Last: Yen
Title: Measuring CPI's reliability: the stochastic approach to index numbers revisited
Abstract:
The reliability measurement of the Consumer Price Index (CPI) has
recently drawn much attention, as the index number has been criticized for
its inaccuracy in accessing the degree of inflation. This article centers
on providing a new regression specification that can help better gauge the
CPI's reliability. More specifically, based on the stochastic approach to
index numbers, we argue that the conventional treatment of the systematic
changes in relative prices should be made time variant. We therefore
propose a more comprehensive regression specification by including
additional dummies that represent different general inflation rate levels
and business cycle phases. Under this framework, we are more capable of
avoiding possible misspecifications in the regression equation, as was
experienced by Clements and Izan (1987). It also allows us to better
answer the ‘Keynes’ critic’ regarding the stochastic
approach to index numbers. The empirical results of Australia and the US
are used to validate the merit of our specification.
Journal: Applied Economics
Pages: 2894-2908
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.687097
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687097
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2894-2908
Template-Type: ReDIF-Article 1.0
Author-Name: Vu Thanh Hai
Author-X-Name-First: Vu Thanh
Author-X-Name-Last: Hai
Author-Name: Albert K. Tsui
Author-X-Name-First: Albert K.
Author-X-Name-Last: Tsui
Author-Name: Zhaoyong Zhang
Author-X-Name-First: Zhaoyong
Author-X-Name-Last: Zhang
Title: Measuring asymmetry and persistence in conditional volatility in real output: evidence from three East Asian tigers using a multivariate GARCH approach
Abstract:
We search for evidence of conditional volatility in the quarterly real
Gross Domestic Product (GDP) growth rates of three East Asian tigers:
Singapore, Hong Kong and Taiwan. The widely accepted Exponential
Generalized Autoregressive Conditional Heteroscedasticity (EGARCH)-type
model is used to capture the existence of asymmetric volatility and the
potential structural break points in the volatility. We find evidence of
asymmetry and persistence in the volatility of GDP growth rates. It is
noted that the structural breakpoints of volatility correspond reasonably
well to the historical economic and political events in these economies.
Policy implications from our findings are discussed.
Journal: Applied Economics
Pages: 2909-2914
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.687098
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687098
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2909-2914
Template-Type: ReDIF-Article 1.0
Author-Name: Belen Usero
Author-X-Name-First: Belen
Author-X-Name-Last: Usero
Author-Name: Grigorios Asimakopoulos
Author-X-Name-First: Grigorios
Author-X-Name-Last: Asimakopoulos
Title: Productivity change and its determinants among leading mobile operators in Europe
Abstract:
The European mobile telecommunications industry has seen increased
competition and market saturation in recent years, so improving
productivity will become crucially important for mobile operators in the
near future. This study adopts a bootstrap Malmquist index approach to
estimate productivity change among a sample of 23 of Europe's leading
mobile operators over the 2008 to 2009 period. Using a second-stage
regression, this article also analyses the determinants of productivity
changes in terms of regulation, competition and ownership structure. The
results show that mobile companies operating in countries that have
recently joined the EU have a positive association with productivity
change, in contrast to their counterparts in South-East Europe. Concerning
market competition, the leading mobile operators that experience higher
productivity changes operate in more concentrated markets. The results
also indicate that international mobile operators perform better in terms
of productivity change than their national equivalents. Finally, some of
the implications of the findings for mobile operators’ management
and policymakers are provided.
Journal: Applied Economics
Pages: 2915-2925
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.687100
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687100
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2915-2925
Template-Type: ReDIF-Article 1.0
Author-Name: Saeid Mahdavi
Author-X-Name-First: Saeid
Author-X-Name-Last: Mahdavi
Author-Name: Emmanuel Alanis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Alanis
Title: Public expenditures and the unemployment rate in the American states: panel evidence
Abstract:
We reexamine the Unemployment Rate (UR) -- government expenditure nexus
in a panel of 50 State and Local Governments (SLGs) over the period
1977--2006 to provide new pre-recession empirical evidence that helps put
the expectations on the effects of the federal relief to SLGs in a broader
context. We found that: (1) per capita real public spending (total and
capital, assistance and subsidies, wages and salaries, and social
insurance categories) was part of a cointegrating relationship with UR and
real per capita state personal income. (2) With the exception of social
insurance, other spending variables, when statistically significant,
actually had a depressing effect on UR. The magnitude of this effect,
however, was generally small. UR was most sensitive to increases in wages
and salaries. (3) Long-term causality analysis based on panel
error-correction coefficients provided consistent evidence of a causal
effect from spending to UR, but less consistent evidence of such effect in
the opposite direction. Social insurance, however, drove UR. (4) The size
of the error-correction coefficients suggested a slow response of UR to
deviations from the cointegrating relationship. (5) The marginal effect of
spending on UR increased with the amount of the federal grants received.
Our results suggest that public spending may not serve as a quick fix in
relation to UR. They also seem to favour allocation of the federal funds
to wage and salaries and assistance and subsidies, but not to capital and
social insurance expenditures to lower UR.
Journal: Applied Economics
Pages: 2926-2937
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.690849
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690849
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2926-2937
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner
Author-X-Name-First: Kurt A.
Author-X-Name-Last: Hafner
Title: Agglomeration economies and clustering -- evidence from German and European firms
Abstract:
This article empirically analyses the impact of agglomeration economies
on the clustering of German and European firms using partial
proportional-odds models. Firms are grouped according to industry and
divided into departments. At the industry level, I find evidence for
inter-industry economies derived from the New Economic
Geography (NEG) framework for European firms in general and German
knowledge-intensive firms in particular. At the department level,
Marshallian Externalities such as the hiring of skilled labour and
technological spillover, and therefore intra-industry
economies, are empirically confirmed for European and German
departments like Human Resources and R&D but rarely for others.
Journal: Applied Economics
Pages: 2938-2953
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.690850
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690850
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2938-2953
Template-Type: ReDIF-Article 1.0
Author-Name: Lien-Ti Bei
Author-X-Name-First: Lien-Ti
Author-X-Name-Last: Bei
Author-Name: Tsung-Chi Cheng
Author-X-Name-First: Tsung-Chi
Author-X-Name-Last: Cheng
Title: Brand power index -- using principal component analysis
Abstract:
A relatively simple approach is proposed to evaluate the strength of
brands from the viewpoint of consumers. It employs Principal Component
Analysis (PCA), in which the coefficients of the first principal component
are used as the weight for developing our study's final
‘product’, the Brand Power Index (BPI). Empirical
consumer-survey data of two product categories: televisions and mobile
phones illustrate that the patterns of PCA results for both televisions
and mobile phones are extremely similar. The biplots reveal that the
leading brands in both product categories had positive component scores;
more than a dozen following brands had positive first component scores and
negative second component scores in both categories. This led us to a
visual examination of the data on certain leading brands with regard to
their brand excellence.
Journal: Applied Economics
Pages: 2954-2960
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.690853
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690853
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2954-2960
Template-Type: ReDIF-Article 1.0
Author-Name: Ashoka Mody
Author-X-Name-First: Ashoka
Author-X-Name-Last: Mody
Author-Name: Mark P. Taylor
Author-X-Name-First: Mark P.
Author-X-Name-Last: Taylor
Title: International capital crunches: the time-varying role of informational asymmetries
Abstract:
We examine the determinants of capital flows to four developing countries
during the 1990s using an explicitly disequilibrium econometric framework
in which the supply and demand for capital are not necessarily equal and
the actual amount of the flow is determined by the ‘short
side’ of the market. We are thus able to detect instances of
‘international capital crunch’ -- where capital flows are
curtailed because of supply-side rationing -- and to relate these
instances to movements in the underlying fundamentals. The analysis
highlights the role of asymmetric information -- as distinct from the
traditional concern with default risk -- in conditioning capital flows.
Journal: Applied Economics
Pages: 2961-2973
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.657355
File-URL: http://hdl.handle.net/10.1080/00036846.2012.657355
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2961-2973
Template-Type: ReDIF-Article 1.0
Author-Name: Obiyathulla Ismath Bacha
Author-X-Name-First: Obiyathulla Ismath
Author-X-Name-Last: Bacha
Author-Name: Azhar Mohamad
Author-X-Name-First: Azhar
Author-X-Name-Last: Mohamad
Author-Name: Sharifah Raihan Syed Mohd Zain
Author-X-Name-First: Sharifah Raihan Syed Mohd
Author-X-Name-Last: Zain
Author-Name: Mohd Eskandar Shah Mohd Rasid
Author-X-Name-First: Mohd Eskandar Shah Mohd
Author-X-Name-Last: Rasid
Title: Foreign exchange exposure and impact of policy switch -- the case of Malaysian listed firms
Abstract:
This article undertakes an in-depth study of the foreign exchange
exposure of Malaysian listed firms. We examine several issues related to
firm-specific and overall exposure, including an evaluation of the
efficacy of adopting a hard-peg on such exposure. Our sample consists of
158 listed firms and spans the 16 year period, 1990--2005. A multivariate
model using four bilateral exchange rates is used to determine firm level
exposure while panel data analysis using a random-effects Generalized
Least Squares (GLS) model is used to determine system-wide or aggregate
sample exposure. We find a total 71% of our sample firms to have
significant exchange rate exposure, a rate substantially higher than that
reported for most countries, especially developed ones. The US$ is by far
the single most important source of exposure with 63% of sample firms
exposed to it. The sign of the beta coefficient for three of the four
currencies are negative, implying that our sample firms are largely net
importers in these currencies. We find exposure to be time variant and
dependent on the sector within which a firm operates. Interestingly, the
panel data analysis which measures aggregate exposure, shows the US$ to be
a significant source of exposure even with the adoption of the hard peg.
The change in policy regime to a fixed peg following the crisis appears to
have had no impact at either firm-level exposure or overall system-wide
exposure.
Journal: Applied Economics
Pages: 2974-2984
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.684790
File-URL: http://hdl.handle.net/10.1080/00036846.2012.684790
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2974-2984
Template-Type: ReDIF-Article 1.0
Author-Name: Takaaki Aoki
Author-X-Name-First: Takaaki
Author-X-Name-Last: Aoki
Title: An empirical analysis on the law of purchasing power parity and international economic deepening
Abstract:
This article empirically investigates the effect of international trade
on the deviation of Purchasing Power Parity (PPP) law and on the
international economic deepening in four developed countries (Japan, USA,
UK and France), and three Asian developing ones (South Korea, Singapore
and Malaysia), using International Financial Statistics (IFS) data issued
by International Monetary Fund (IMF). Our results show that in some
developed countries the imbalance effect of balance of payments is
significant for both international deepening and deviation from PPP, and
in some developing countries the volume effect of balance of payments is
significant for international deepening.
Journal: Applied Economics
Pages: 2985-2993
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.684792
File-URL: http://hdl.handle.net/10.1080/00036846.2012.684792
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2985-2993
Template-Type: ReDIF-Article 1.0
Author-Name: Gigi Foster
Author-X-Name-First: Gigi
Author-X-Name-Last: Foster
Author-Name: Charlene M. Kalenkoski
Author-X-Name-First: Charlene M.
Author-X-Name-Last: Kalenkoski
Title: Tobit or OLS? An empirical evaluation under different diary window lengths
Abstract:
Researchers analysing time-use data often estimate limited dependent
variable models because time spent must be nonnegative and cannot be more
than the total amount of time in a given observation period. While the
traditional empirical technique applied to such cases is maximum
likelihood estimation of a Tobit (censored regression) model, recent
debate has questioned whether linear models estimated via Ordinary Least
Squares (OLS) are preferable. On the one hand, Tobit models are deemed
necessary to address the significant censoring (i.e. large numbers of
zeroes) typically found in time-use data, in the face of which OLS
estimators would be biased and inconsistent. Yet, optimization occurs over
a longer period than that covered by the typical time diary (often a day),
and thus some argue that reported zeroes represent a measurement problem
rather than true nonparticipation in the activity, in which case OLS would
be preferred. We provide direct empirical evidence on this question using
the Australian Time Use Surveys, which record time-use information for two
consecutive diary days, by estimating censored and linear versions of a
parental child care model for both 24-hour and 48-hour windows of
observation in order to determine the empirical consequences of estimation
technique and diary length.
Journal: Applied Economics
Pages: 2994-3010
Issue: 20
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.690852
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690852
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Handle: RePEc:taf:applec:v:45:y:2013:i:20:p:2994-3010
Template-Type: ReDIF-Article 1.0
Author-Name: Pang-Tien Lieu
Author-X-Name-First: Pang-Tien
Author-X-Name-Last: Lieu
Author-Name: Chinkun Chang
Author-X-Name-First: Chinkun
Author-X-Name-Last: Chang
Author-Name: Philip Mizzi
Author-X-Name-First: Philip
Author-X-Name-Last: Mizzi
Title: Estimating the true cost of living for households with different incomes using data from Taiwan
Abstract:
This empirical study investigates why the true costs of living for
different income groups in Taiwan as measured by the superlative
Törnqvist price index have grown dissimilarly over the sample period.
Specifically, it shows that using the aggregate Cost of Living (COL)
estimates for the entire households as is commonly practiced would produce
noticeable group bias effect in measurement. Also the magnitude of the
commodity substitution bias in the conventional Consumer Price Index (CPI)
is found to be positively related to household income in general. Because
of the presence of these two biases, the true COL for households belonging
to the two ends of the income spectrum is found to be over-estimated. This
article is therefore in full agreement with Arrow's proposition that an
alternative and separate set of price index be constructed.
Journal: Applied Economics
Pages: 3011-3023
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.692872
File-URL: http://hdl.handle.net/10.1080/00036846.2012.692872
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3011-3023
Template-Type: ReDIF-Article 1.0
Author-Name: Irma Hindrayanto
Author-X-Name-First: Irma
Author-X-Name-Last: Hindrayanto
Author-Name: John A.D. Aston
Author-X-Name-First: John A.D.
Author-X-Name-Last: Aston
Author-Name: Siem Jan Koopman
Author-X-Name-First: Siem Jan
Author-X-Name-Last: Koopman
Author-Name: Marius Ooms
Author-X-Name-First: Marius
Author-X-Name-Last: Ooms
Title: Modelling trigonometric seasonal components for monthly economic time series
Abstract:
The basic structural time series model has been designed for the
modelling and forecasting of seasonal economic time series. In this
article, we explore a generalization of the basic structural time series
model in which the time-varying trigonometric terms associated with
different seasonal frequencies have different variances for their
disturbances. The contribution of the article is two-fold. The first aim
is to investigate the dynamic properties of this frequency-specific Basic
Structural Model (BSM). The second aim is to relate the model to a
comparable generalized version of the Airline model developed at the US
Census Bureau. By adopting a quadratic distance metric based on the
restricted reduced form moving-average representation of the models, we
conclude that the generalized models have properties that are close to
each other compared to their default counterparts. In some settings, the
distance between the models is almost zero so that the models can be
regarded as observationally equivalent. An extensive empirical study on
disaggregated monthly shipment and foreign trade series illustrates the
improvements of the frequency-specific extension and investigates the
relations between the two classes of models.
Journal: Applied Economics
Pages: 3024-3034
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.690937
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690937
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3024-3034
Template-Type: ReDIF-Article 1.0
Author-Name: Ying Sophie Huang
Author-X-Name-First: Ying Sophie
Author-X-Name-Last: Huang
Author-Name: Carl R. Chen
Author-X-Name-First: Carl R.
Author-X-Name-Last: Chen
Title: Are college chief executives paid like corporate CEOs or bureaucrats?
Abstract:
We study compensation of college chief executives from 1997 to 2004.
Although presidential salaries have acquired the attention of the media,
Congress, and the Internal Revenue Service (IRS) in recent years, they are
much below those of corporate CEOs. Compared with CEOs in corporations
with comparable sizes, college chief executives earn on average
approximately one-third of the compensation of their corporate
counterparts. However, CEO compensation is more volatile than that of
college chief executives. Our results show that private college
presidential salaries are consistent with the prediction of job complexity
and institutional reputation hypotheses. Presidential compensations of
public research universities, on the other hand, are more consistent with
the prediction of job complexity hypothesis only. Hence, our findings do
not support the prediction of bureaucrat hypothesis for both private and
public institutions.
Journal: Applied Economics
Pages: 3035-3043
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.695070
File-URL: http://hdl.handle.net/10.1080/00036846.2012.695070
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3035-3043
Template-Type: ReDIF-Article 1.0
Author-Name: Nissim Ben David
Author-X-Name-First: Nissim
Author-X-Name-Last: Ben David
Title: Predicting housing prices according to expected future interest rate
Abstract:
In this article, I present a theoretical model for predicting future
housing prices as a function of the expected future interest rate, housing
depreciation and rent rate. Focusing on the notion of arbitrage, where the
returns on investing in housing is equal to the return on bonds, I
forecast housing prices in the US as a function of the expected future
interest rate on corporate bonds graded at categories AAA or AA. I get
that a change in the expected future bond yield will lead to a change in
future housing prices.
Journal: Applied Economics
Pages: 3044-3048
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.697124
File-URL: http://hdl.handle.net/10.1080/00036846.2012.697124
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3044-3048
Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Yi Lin
Author-X-Name-First: Ching-Yi
Author-X-Name-Last: Lin
Author-Name: Chun Wang
Author-X-Name-First: Chun
Author-X-Name-Last: Wang
Title: Forecasting China's inflation in a data-rich environment
Abstract:
Inflation is one of the most recent critical issues facing China. To
improve inflation forecasts within China, this study investigates the
predictive ability of three dimension reduction techniques used in a
data-rich environment: Principal Components Analysis (PCA), Sliced Inverse
Regression (SIR), and Partial Least Squares (PLS) applied in the
Factor-Augmented Autoregression (FAAR) model proposed by Stock and Watson
(2005). Varied macroeconomic data from China between January 1998 and
December 2009 are obtained to construct factors for use by three different
techniques. The performance of different dimension reduction methods
depends on forecasting horizons, the number of factors chosen, and the
number of slices for SIR. The empirical study finds that the FAAR model
with an optimal number of PCA factors outperforms the other model in
out-of-sample inflation forecasting in China.
Journal: Applied Economics
Pages: 3049-3057
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.697122
File-URL: http://hdl.handle.net/10.1080/00036846.2012.697122
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3049-3057
Template-Type: ReDIF-Article 1.0
Author-Name: M. Aubry
Author-X-Name-First: M.
Author-X-Name-Last: Aubry
Author-Name: P. Renou-Maissant
Author-X-Name-First: P.
Author-X-Name-Last: Renou-Maissant
Title: Investigating the semiconductor industry cycles
Abstract:
The aim of this article is to investigate the links between semiconductor
sales and various macroeconomic, financial, industrial variables including
inventories, equipment orders or semiconductor sector stock index.
Statistical properties of these variables are studied. Both short-run and
long-run interactions are analysed. On the short-run, our results indicate
that relationships often imply feedbacks. Through the implementation of
cointegration analysis, we separately identify both sales value and
investments in the semiconductor market. An impulse--response analysis
confirms the relevance of our choice of data and stability tests
demonstrate that the parameters remain constant during the entire sample.
The Vector Error Correction Models (VECMs) offer a representation
respecting cycle theories and market actor analyses.
Journal: Applied Economics
Pages: 3058-3067
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.697123
File-URL: http://hdl.handle.net/10.1080/00036846.2012.697123
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3058-3067
Template-Type: ReDIF-Article 1.0
Author-Name: C鬩ne Gondat-Larralde
Author-X-Name-First: C鬩ne
Author-X-Name-Last: Gondat-Larralde
Author-Name: Frank Strobel
Author-X-Name-First: Frank
Author-X-Name-Last: Strobel
Title: Uncertainty and switching in the mortgage market
Abstract:
We examine when it might be optimal for borrowers to switch providers of
debt products such as their mortgage, allowing in particular for the role
of uncertainty by constructing a stylized real options model of the
decision problem involved. We illustrate with numerical examples, and then
calibrate the model for the UK mortgage market for the period October 1998
to March 2005; significant magnitudes of trigger levels can arise even
when standard switching costs are zero, providing an additional,
risk-related explanation to the inertia commonly observed in borrowers'
product choices.
Journal: Applied Economics
Pages: 3068-3073
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/13504851.2012.690842
File-URL: http://hdl.handle.net/10.1080/13504851.2012.690842
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3068-3073
Template-Type: ReDIF-Article 1.0
Author-Name: M. K. Jones
Author-X-Name-First: M. K.
Author-X-Name-Last: Jones
Author-Name: R. J. Jones
Author-X-Name-First: R. J.
Author-X-Name-Last: Jones
Author-Name: P. L. Latreille
Author-X-Name-First: P. L.
Author-X-Name-Last: Latreille
Author-Name: P. D. Murphy
Author-X-Name-First: P. D.
Author-X-Name-Last: Murphy
Author-Name: P. J. Sloane
Author-X-Name-First: P. J.
Author-X-Name-Last: Sloane
Title: A regional analysis of flows into and out of the UK national minimum wage
Abstract:
This article utilizes the panel element of the UK Labour Force Survey
(LFS) to identify for individual regions total inflows and outflows and
hazards for those individuals paid at or below the National Minimum Wage
(NMW). In particular, it examines the extent and direction of the
correlation between low-pay inflows and outflows and the economic cycle.
Further, it examines the impact of regional variations in the bite of the
NMW on regional flows into and out of the NMW.
Journal: Applied Economics
Pages: 3074-3087
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.695069
File-URL: http://hdl.handle.net/10.1080/00036846.2012.695069
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3074-3087
Template-Type: ReDIF-Article 1.0
Author-Name: Kristofer Månsson
Author-X-Name-First: Kristofer
Author-X-Name-Last: Månsson
Author-Name: Ghazi Shukur
Author-X-Name-First: Ghazi
Author-X-Name-Last: Shukur
Author-Name: Pär Sjölander
Author-X-Name-First: Pär
Author-X-Name-Last: Sjölander
Title: Asymmetric quantile analysis of the Swedish mortgage price discovery process
Abstract:
Based on Swedish banking data we discover robust and significantly
positive Asymmetric Price Transmission (APT) effects over all analysed
regression quantiles of our mortgage interest rates, with even larger
positive APT for the higher percentiles. The analysis was enabled through
unique access to a Swedish bank's (SEB) own records of their true
borrowing costs. Our central contribution is that there is a higher
propensity for the bank to rapidly increase its mortgage interest rates
for customers following an increase in its borrowing costs, compared with
the propensity for the bank to decrease its customers’ mortgage
rates subsequent to a corresponding borrowing cost decrease.
Journal: Applied Economics
Pages: 3088-3101
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.681030
File-URL: http://hdl.handle.net/10.1080/00036846.2012.681030
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3088-3101
Template-Type: ReDIF-Article 1.0
Author-Name: Bo Sun
Author-X-Name-First: Bo
Author-X-Name-Last: Sun
Title: The optimal shape of compensation contracts with earnings management
Abstract:
The research question of why earnings management occurs is decomposed
into two questions in this article: Which component of executive
compensation generates incentives for earnings management? and Why is the
compensation structured that way in the first place? We first use as a
dynamic stochastic equilibrium model to show that ‘big bath’
and earning overstatement can co-exist as equilibrium financial reporting
strategies when thresholds are used in compensation contracts. In order to
understand the use of performance thresholds as a prevailing compensation
strategy in practice, we then derive the optimal compensation contract
when the manager is privately informed about economic earnings and his
expertise in managing earnings. Equilibria exist in which the inactive
region below a threshold in compensation should be economically
significant.
Journal: Applied Economics
Pages: 3102-3109
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.699187
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699187
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3102-3109
Template-Type: ReDIF-Article 1.0
Author-Name: Zhuo Liu
Author-X-Name-First: Zhuo
Author-X-Name-Last: Liu
Author-Name: Christopher A. Kanter
Author-X-Name-First: Christopher A.
Author-X-Name-Last: Kanter
Author-Name: Kent D. Messer
Author-X-Name-First: Kent D.
Author-X-Name-Last: Messer
Author-Name: Harry M. Kaiser
Author-X-Name-First: Harry M.
Author-X-Name-Last: Kaiser
Title: Identifying significant characteristics of organic milk consumers: a CART analysis of an artefactual field experiment
Abstract:
The organic dairy category is one of the fastest growing categories of
organic foods in the US. Organic milk consumers generally cite perceived
health benefits and lower risk of food contamination, as well as perceived
superior quality and environmental sustainability of organic farming
methods, as the major motivations for preference of organic over
conventional milk. While the attributes of organic milk that are valued by
consumers are fairly well-known, more ambiguity exists regarding the
demographic characteristics of the typical organic milk consumer. This
research makes use of experimental data from 148 adult participants and
use a Classification and Regression Tree (CART) analysis, a nonparametric
modelling approach, to identify how Willingness-to-Pay (WTP) for organic
milk varies with the demographic profile of experiment participants. The
study finds that perceived taste of organic milk, concern for the risk of
consuming conventional milk, being a primary shopper, and the quantity of
milk consumed are the major factors that separate experiment participants
into groups with high and low WTP for organic milk.
Journal: Applied Economics
Pages: 3110-3121
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.699189
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699189
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3110-3121
Template-Type: ReDIF-Article 1.0
Author-Name: Tidiane Kinda
Author-X-Name-First: Tidiane
Author-X-Name-Last: Kinda
Title: Oil windfall, public spending and price stability: modelling inflation in Chad†
Abstract:
This article examines the determinants of inflation in Chad using
quarterly data from 1983:Q1 to 2009:Q3. The analysis is based on a
single-equation model, completed by a Structural Vector Autoregression
(SVAR) model to capture inflation persistence. The results show that the
main determinants of inflation in Chad are rainfall, foreign prices,
exchange rate movements and particularly public spending, which soared
following the onset of oil production in 2003. The effects of rainfall
shocks and changes in foreign prices on inflation persist during six
quarters. Changes in public spending and the nominal exchange rate affect
inflation during three and four quarters, respectively.
†The views expressed herein are those of the author and should not
be attributed to the IMF, its Executive Board, or its management.
Journal: Applied Economics
Pages: 3122-3135
Issue: 21
Volume: 45
Year: 2013
Month: 7
X-DOI: 10.1080/00036846.2012.690851
File-URL: http://hdl.handle.net/10.1080/00036846.2012.690851
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Handle: RePEc:taf:applec:v:45:y:2013:i:21:p:3122-3135
Template-Type: ReDIF-Article 1.0
Author-Name: Debasri Mukherjee
Author-X-Name-First: Debasri
Author-X-Name-Last: Mukherjee
Author-Name: Elsy Thomas Kizhakethalackal
Author-X-Name-First: Elsy Thomas
Author-X-Name-Last: Kizhakethalackal
Title: Empirics of health-aid, education and infant mortality: a semiparametric study
Abstract:
The present article uses semiparametric regression to capture the impact
of foreign-aid given for health purposes on the Infant Mortality Rate
(IMR) of poor developing countries, after controlling for other
covariates. We also investigate whether education (general awareness)
helps lower IMR directly or helps improve effectiveness of health-aid in
reducing IMR. In addition, the study investigates whether various
disaggregated components of health-aid (for example, aid that goes for
infectious disease control or nutrition) help lower IMR. We find that
although adult education (awareness) always lowers IMR, the overall effect
of health-aid remains insignificant. Our conclusion is robust to various
disaggregated components of health-aid as well. We also check if
health-aid has improved prenatal care for expecting mothers but our
conclusion regarding the overall ineffectiveness of aid
remains unchanged. Interestingly, we find that total
health-aid as well as nutrition aid may lower IMR only after education
exceeds a threshold level -- a new angle that has
not been explicitly explored before. We also find interesting
role of education in making the aid more effective for prenatal care. Our
semiparametric nonlinear estimation strategy helps us unravel certain
interesting thresholds and facts which cannot be captured in a linear
parametric estimation framework.
Journal: Applied Economics
Pages: 3137-3150
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.699186
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699186
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3137-3150
Template-Type: ReDIF-Article 1.0
Author-Name: Simon W. Bowmaker
Author-X-Name-First: Simon W.
Author-X-Name-Last: Bowmaker
Author-Name: Patrick M. Emerson
Author-X-Name-First: Patrick M.
Author-X-Name-Last: Emerson
Title: Still waiting for Mister Right? Asymmetric information, abortion laws and the timing of marriage
Abstract:
Previous studies have suggested that more liberal abortion laws should
lead to a decrease in marriage rates among young women as ‘shotgun
weddings’ are no longer necessary. Empirical evidence from the
United States lends support to that hypothesis. This article presents an
alternative theory of abortion access and marriage based on the cost of
search which suggests that more liberal abortion laws may actually promote
young marriage. An empirical examination of marriage data from Eastern
Europe shows that countries that liberalized their abortion laws saw an
increase in marriage rates among nonteenage women.
Journal: Applied Economics
Pages: 3151-3169
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.699188
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699188
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3151-3169
Template-Type: ReDIF-Article 1.0
Author-Name: Joras Ferwerda
Author-X-Name-First: Joras
Author-X-Name-Last: Ferwerda
Author-Name: Mark Kattenberg
Author-X-Name-First: Mark
Author-X-Name-Last: Kattenberg
Author-Name: Han-Hsin Chang
Author-X-Name-First: Han-Hsin
Author-X-Name-Last: Chang
Author-Name: Brigitte Unger
Author-X-Name-First: Brigitte
Author-X-Name-Last: Unger
Author-Name: Loek Groot
Author-X-Name-First: Loek
Author-X-Name-Last: Groot
Author-Name: Jacob A. Bikker
Author-X-Name-First: Jacob A.
Author-X-Name-Last: Bikker
Title: Gravity models of trade-based money laundering
Abstract:
Several attempts have been made in the literature to measure money
laundering. However, the adequacy of these models is difficult to assess,
as money laundering takes place secretly and, hence, goes unobserved. An
exception is Trade-Based Money Laundering (TBML), a special form of trade
abuse that has been discovered only recently. TBML refers to criminal
proceeds that are transferred around the world using fake invoices that
under- or overvalue imports and exports. This article is a first test on
the well-known prototype models proposed by Walker and Unger to predict
illicit money laundering flows and to apply traditional gravity models
familiar in international trade theory. To do so, we use a dataset of
Zdanowicz of TBML flows from the US to 199 countries. Our test rejects the
specifications of the Walker and Unger prototype models, at least for
TBML. The traditional gravity model that we present can explain TBML flows
worldwide in a plausible manner. An important determinant is trade in
which TBML is hidden. Furthermore, our results suggest that criminals use
TBML in order to escape the stricter anti-money laundering regulations of
financial markets.
Journal: Applied Economics
Pages: 3170-3182
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.699190
File-URL: http://hdl.handle.net/10.1080/00036846.2012.699190
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3170-3182
Template-Type: ReDIF-Article 1.0
Author-Name: Regina T. Riphahn
Author-X-Name-First: Regina T.
Author-X-Name-Last: Riphahn
Author-Name: Parvati Trübswetter
Author-X-Name-First: Parvati
Author-X-Name-Last: Trübswetter
Title: The intergenerational transmission of education and equality of educational opportunity in East and West Germany
Abstract:
Socialist societies often emphasized the abolition of traditional social
classes. To achieve this objective, educational opportunities were at
times ‘actively managed’ and allocated to children of less
educated parents. What happened to these patterns after the demise of
socialist rule in Eastern Europe? We study the development of educational
mobility after the fall of the iron curtain in East Germany and compare
the relevance of parental educational background for secondary schooling
in East and West Germany. Based on the data from the German
Mikrozensus we find that educational mobility is lower in
East than in West Germany and that it has been falling in East Germany
after unification. While the educational advantage of girls declined over
time, having many siblings presents a more substantial disadvantage in
East than in West Germany.
Journal: Applied Economics
Pages: 3183-3196
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.703314
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703314
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3183-3196
Template-Type: ReDIF-Article 1.0
Author-Name: Richard E. Mueller
Author-X-Name-First: Richard E.
Author-X-Name-Last: Mueller
Title: A note on Canadian migration to the United States during the 1980s and 1990s
Abstract:
Considerable media attention had been directed towards the flow of highly
talented Canadians to the United States in the 1990s. There are firm
theoretical reasons, however, to believe that qualitative differences in
migration began as early as the 1980s, owing to the widening distribution
of earnings and the related increased returns to education in the United
States relative to Canada, both of which could result in qualitative
improvements in the migration flow. US immigration policy remained
essentially unchanged during the 1980s, but changed markedly in the 1990s
owing to the implementation of the Canada--US Free Trade Agreement (CUFTA)
and its successor, the North American Free Trade Agreement (NAFTA). We use
a flexible empirical approach to document these changes in immigrant
quality using 1980, 1990 and 2000 US census data. Our results suggest that
improvements in Canadian immigrant quality occurred during the 1990s, but
these also happened earlier, casting doubt on the hypothesis of improving
Canadian immigrant quality in the 1990s. Quantile regressions also show
that improvement in the entry quality of immigrants was not limited to the
upper tail of the earnings distribution.
Journal: Applied Economics
Pages: 3197-3210
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.703311
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703311
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3197-3210
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Cuestas
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Cuestas
Author-Name: Karsten Staehr
Author-X-Name-First: Karsten
Author-X-Name-Last: Staehr
Title: Fiscal shocks and budget balance persistence in the EU countries from Central and Eastern Europe
Abstract:
This article analyses the time series properties of the fiscal balance in
the 10 EU countries from Central and Eastern Europe. The persistence of
the fiscal balance is analysed by means of unit root tests that account
for possible nonlinearities and structural changes. The linear and
nonlinear unit root tests find only mild evidence in favour of the
stationarity hypothesis, with asymmetric effects present in a few cases.
After controlling for structural changes in the Data Generation Processes
(DGPs), the results point to stationarity of the series. Thus, in spite of
relatively steady headline figures, the budget balance processes in the EU
countries from Central and Eastern Europe exhibit substantial instability.
Journal: Applied Economics
Pages: 3211-3219
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.703316
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703316
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3211-3219
Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Ayala
Author-X-Name-First: Astrid
Author-X-Name-Last: Ayala
Author-Name: Juncal Cunado
Author-X-Name-First: Juncal
Author-X-Name-Last: Cunado
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: Real convergence: empirical evidence for Latin America
Abstract:
This article investigates the real convergence of 17 Latin American
countries to the US economy for the period 1950 to 2011. Time series
methods are used to test stochastic and β-convergence. These methods
include the possibility of one or two structural changes. The results show
that when endogenous structural changes are considered several Latin
American countries exhibit stochastic convergence. Nevertheless, real
convergence to the US is found only for three Latin American countries:
Chile, Costa Rica and Trinidad and Tobago, with these countries also
presenting evidence of stochastic and β-convergence.
Journal: Applied Economics
Pages: 3220-3229
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.703317
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703317
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3220-3229
Template-Type: ReDIF-Article 1.0
Author-Name: Sotiris Vandoros
Author-X-Name-First: Sotiris
Author-X-Name-Last: Vandoros
Author-Name: Panos Kanavos
Author-X-Name-First: Panos
Author-X-Name-Last: Kanavos
Title: The generics paradox revisited: empirical evidence from regulated markets
Abstract:
Earlier studies have pointed at the presence of a generics paradox in the
US prescription drug market. This article tests whether the generics
paradox also holds in the presence of pricing and reimbursement regulation
in six European prescription drug markets. Using proprietary pricing and
market share data, the results of panel data analysis suggest that the
generics paradox also holds in these markets. Neither generic entry nor
generic market penetration affect prices of originator drugs downwards,
and prices of originator drugs actually increase post-generic entry.
Journal: Applied Economics
Pages: 3230-3239
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.703313
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703313
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3230-3239
Template-Type: ReDIF-Article 1.0
Author-Name: Tilman Tacke
Author-X-Name-First: Tilman
Author-X-Name-Last: Tacke
Author-Name: Robert J. Waldmann
Author-X-Name-First: Robert J.
Author-X-Name-Last: Waldmann
Title: Infant mortality, relative income and public policy
Abstract:
Do health outcomes depend on relative income as well as on an
individual's absolute level of income? We use infant mortality as a health
status indicator and find a significant and positive link between infant
mortality and income inequality using cross-national data for 93
countries. Holding constant the income of each of the three poorest
quintiles of a country's population, we find that an increase in the
income of the upper 20% of the income distribution is associated with
higher, not the lower infant mortality. Our results are robust and not
just caused by the concave relationship between income and health. The
estimates imply a decrease in infant mortality by 1.5% for a one
percentage point decrease in the income share of the richest quintile. The
overall results are sensitive to public policy: public health care
expenditure, educational outcomes, and access to basic sanitation and safe
water can explain the inequality--health relationship. Thus, our findings
support the hypothesis of public disinvestment in human capital in
countries with high income inequality. However, we are not able to
determine whether public policy is a confounder or mediator of the
relationship between income distribution and health. Relative deprivation
caused by the income distance between an individual and the individual's
reference group is another possible explanation for a direct effect from
income inequality to health.
Journal: Applied Economics
Pages: 3240-3254
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.705429
File-URL: http://hdl.handle.net/10.1080/00036846.2012.705429
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3240-3254
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements
Author-X-Name-First: Kenneth W.
Author-X-Name-Last: Clements
Author-Name: H. Y. Izan
Author-X-Name-First: H. Y.
Author-X-Name-Last: Izan
Author-Name: Yihui Lan
Author-X-Name-First: Yihui
Author-X-Name-Last: Lan
Title: Volatility and stock price indexes
Abstract:
The stochastic approach to index numbers has been successfully applied to
the estimation of inflation, the world interest rate and international
competitiveness. One distinct advantage of this approach is that it
provides the whole distribution of the index, not simply one value. In
this article, we extend the stochastic approach to the estimation of a
stock market index. We demonstrate how this approach can be used to
identify ‘redundant stocks’ that do not contribute
significantly to the overall index. For index tracking purposes,
these stocks can be safely excluded.
Journal: Applied Economics
Pages: 3255-3262
Issue: 22
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.703315
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703315
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Handle: RePEc:taf:applec:v:45:y:2013:i:22:p:3255-3262
Template-Type: ReDIF-Article 1.0
Author-Name: Agapi Lambrini Somwaru
Author-X-Name-First: Agapi Lambrini
Author-X-Name-Last: Somwaru
Title: Does trade liberalization and its associated increased economic activity affect permanently the value and pattern of trade flows?
Abstract:
Despite a number of multi-country case studies based on a variety of
analytical frameworks and numerous econometric studies using large
cross-country data sets that analyse trade openness and its induced
economic activities that alters both the volume and value of trade flows,
there is still disagreement among economists concerning the nature of this
relationship. In this article, we follow a rather unique approach by
estimating the density functions of the observed trade flows and the
density functions of trade flows generated by tariff removal using an
intertemporal global Computable General Equilibrium (CGE) model. Our
inquiry is whether or not the trade flows generated by global tariff
elimination impact economies in the long-run and alter their historical
underlying distributions. If the latter case prevails, it implies that the
economies follow a different transitional path into a new steady-state
equilibrium. The density functions, estimated parameters and higher
moments of the observed trade flow distributions are distinctly different
from the parameter estimates of the trade flows generated by the model. In
this sense, trade-inducing economic activity as generated by tariff
removal and captured by the neoclassical specification of the model is
associated with trade flows along a different transitional path from the
observed trade flows.
Journal: Applied Economics
Pages: 3263-3277
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.703312
File-URL: http://hdl.handle.net/10.1080/00036846.2012.703312
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3263-3277
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Author-Name: Dan Xi
Author-X-Name-First: Dan
Author-X-Name-Last: Xi
Title: The impact of economic and monetary uncertainty on the demand for money in emerging economies
Abstract:
By introducing uncertainty, monetary volatility and economic volatility
are said to make the public cautious, hence increase their cash holdings
or their demand for money. On the other hand, because of monetary and
economic uncertainty if the public seek safer assets than money, they may
hold less cash. In the absence of any paper testing for the impact of
economic and monetary uncertainty on the demand for money in emerging
economies, this article fills the gap by considering the experiences of
six Central and Eastern European emerging economies and four other
emerging economies. We found that the impact is transitory in most
countries. Moreover, money demand is found correctly specified and stable
in most countries, suggesting that policy based on monetary targeting
could still be effective despite significant output and monetary
uncertainty.
Journal: Applied Economics
Pages: 3278-3287
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.705430
File-URL: http://hdl.handle.net/10.1080/00036846.2012.705430
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3278-3287
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The domestic Balassa--Samuelson effect of inflation for the Greek economy
Abstract:
The goal of this study is to assess whether and to what extent inflation
differentials between the tradable and nontradable sectors in the Greek
economy are due to the domestic version of the Balassa--Samuelson (BS)
effect and, therefore, the ‘expensiveness’ of the country
and its huge deficit of international competitiveness. Using data over the
period 1989 to 2009 from the Greek economy, the empirical results indicate
that the domestic BS effect is present for the case of Greece and seems to
explain about 33% of the overall inflation rate.
Journal: Applied Economics
Pages: 3288-3294
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.707774
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707774
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3288-3294
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos A. Carrasco
Author-X-Name-First: Carlos A.
Author-X-Name-Last: Carrasco
Author-Name: Jesus Ferreiro
Author-X-Name-First: Jesus
Author-X-Name-Last: Ferreiro
Title: Inflation targeting and inflation expectations in Mexico
Abstract:
In this article we analyse inflation expectations in Mexico. After a
review of the theoretical and empirical literature, we apply unit root,
normality and cointegration tests to the data provided by Banco de M鸩co
(Banxico) in the Survey on the Expectations of the Private Sector
Economics Specialists. Our results reject the null hypothesis of normality
for inflation expectations over the period 2004:01--2011:12. The exchange
rate has become one of the most relevant variables in the transmission
mechanism of monetary policy in a small open economy. In this regard, we
show the existence of a long-run relationship between nominal exchange
rate and interest rate where inflation expectations matter for long-term
dynamics.
Journal: Applied Economics
Pages: 3295-3304
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.707772
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707772
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3295-3304
Template-Type: ReDIF-Article 1.0
Author-Name: W. A. Razzak
Author-X-Name-First: W. A.
Author-X-Name-Last: Razzak
Title: Predicting instability
Abstract:
Unanticipated shocks could lead to instability, which is reflected in
statistically significant changes in distributions of random variables.
Changes in the conditional moments of stationary variables are
predictable. We provide a framework based on a statistic for the
sample generalized variance, which is useful for
interrogating real time data and for predicting statistically significant
sudden and large shifts in the conditional variance of a vector of
correlated macroeconomic and financial variables. It is a test for a
market-wide instability. Central banks can incorporate the framework in
the policymaking process.
Journal: Applied Economics
Pages: 3305-3315
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.707775
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707775
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3305-3315
Template-Type: ReDIF-Article 1.0
Author-Name: Jiung-Bin Chin
Author-X-Name-First: Jiung-Bin
Author-X-Name-Last: Chin
Author-Name: Mu-Chen Wu
Author-X-Name-First: Mu-Chen
Author-X-Name-Last: Wu
Author-Name: Ling-Feng Hsieh
Author-X-Name-First: Ling-Feng
Author-X-Name-Last: Hsieh
Title: Strategic planning of optimal resource allocation in response to global financial crisis -- a study of international tourist hotels
Abstract:
This study is principally designed to examine the changes in the
efficiency, effective resource allocation and future operation strategies
of Taiwan's international tourist hotel in global economic downturn. At
first, we set up critical input and output factors and construct an
assessment model using Data Envelopment Analysis (DEA) for analysis of
relative efficiency. Further, we apply an allocative efficiency model for
additional considerations of each input cost and analyse proper and
effective resource allocation. Finally, there are significant changes in
overall efficiency of international tourist hotels under global financial
crisis. We can also reach an effective allocation of the overall
resources. In such cases, lowering cost has become a key issue for
sustainable operation of international tourist hotel. Finally, the
greatest contribution of this study is to further classify the
competitiveness and optimal cost allocation of Taiwan's international
tourist hotels into seven categories based on the study results and
propose strategic planning of future operations for hotel
administrators’ reference in making improvements in the future.
Journal: Applied Economics
Pages: 3316-3328
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.705427
File-URL: http://hdl.handle.net/10.1080/00036846.2012.705427
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3316-3328
Template-Type: ReDIF-Article 1.0
Author-Name: Marlon P. Mundt
Author-X-Name-First: Marlon P.
Author-X-Name-Last: Mundt
Author-Name: Michael T. French
Author-X-Name-First: Michael T.
Author-X-Name-Last: French
Title: Adolescent alcohol use, sociability and income as a young adult
Abstract:
We use data from the National Longitudinal Survey of Adolescent Health
(Add Health) to study how sociability and adolescent alcohol use impact
personal income as a young adult. We find that factors which enhance not
only individual sociability but also social interaction at the community
level are positively linked to future earnings of adolescents. Adolescents
whose friends and friends of friends have greater sociability reap
long-term labour market rewards into adulthood. After adjusting for
individual and community sociability, the effect of teenage alcohol
consumption on labour market earnings as young adults is reduced. Our
results suggest that earnings premiums associated with adolescent alcohol
consumption may be partially explained by social network dynamics.
Journal: Applied Economics
Pages: 3329-3339
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.707773
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707773
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3329-3339
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: Why is it so difficult to outperform the random walk in exchange rate forecasting?
Abstract:
A simulation exercise is used to demonstrate the difficulty to outperform
the random walk in exchange rate forecasting if forecasting accuracy is
judged by the Root Mean Square Error (RMSE) or similar criteria that
depend on the magnitude of the forecasting error. It is shown that, as the
exchange rate volatility rises, the RMSE of the model rises faster than
that of the random walk. While the literature considers this finding to be
a puzzle that casts a big shadow of doubt on the soundness of
international monetary economics, the results show that failure to
outperform the random walk, in both in-sample and out-of-sample
forecasting, should be the rule rather than the exception. However, the
results do not imply that the random walk is unbeatable, because it can be
easily outperformed if forecasting accuracy is judged according to
criteria such as direction accuracy and profitability.
Journal: Applied Economics
Pages: 3340-3346
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.709605
File-URL: http://hdl.handle.net/10.1080/00036846.2012.709605
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3340-3346
Template-Type: ReDIF-Article 1.0
Author-Name: John Lewis
Author-X-Name-First: John
Author-X-Name-Last: Lewis
Title: Fiscal policy in Central and Eastern Europe with real time data: cyclicality, inertia and the role of EU accession
Abstract:
This article evaluates the cyclicality, inertia and effect of EU
accession on fiscal policy in Central and Eastern Europe (CEE) using a
real time dataset. Budget balances are found to react in a stabilizing way
to economic activity -- every extra percentage point of economic growth is
associated with an improvement in the budget balance of 0.3 percentage
points of Gross Domestic Product (GDP) -- and there is no evidence of an
asymmetric reaction to the cycle. Balances are much less inert than is
typically found in Western Europe. However, there is clear evidence of a
fiscal loosening in the run-up to EU accession. This began in 1999 in
larger central European countries, often identified as
‘front-runners’. The other seven began loosening in 2001,
after the Nice Treaty was agreed. For both sets of countries, this
loosening cumulatively amounts to some 3% of GDP.
Journal: Applied Economics
Pages: 3347-3359
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.705428
File-URL: http://hdl.handle.net/10.1080/00036846.2012.705428
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3347-3359
Template-Type: ReDIF-Article 1.0
Author-Name: Yuqing Zheng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Zheng
Author-Name: Harry Kaiser
Author-X-Name-First: Harry
Author-X-Name-Last: Kaiser
Title: Optimal quality threshold of admission in a two-sided farmers’ market
Abstract:
We develop a two-sided model for a farmers’ market where farmers
value the number of consumers, and consumers value the number of farmers
and the average product quality in the market. Consumer preference over
product quality provides an incentive for the farmers’ market to
exclude farmers of the lowest product quality. Using the model, we
identify what factors the farmers’ market has to consider in
determining the optimal quality threshold of admission, an issue that has
not received any formal study. Those factors include the network effects
between farmers and consumers, consumer preference over product quality
and variety, and the quality spread among farmers. We also outline an
empirical estimation strategy in order to make use of the model developed
in this study.
Journal: Applied Economics
Pages: 3360-3369
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.711941
File-URL: http://hdl.handle.net/10.1080/00036846.2012.711941
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3360-3369
Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Title: On the empirics of risk-sharing across MENA countries
Abstract:
In this article, we compute the potential welfare gains and the realized
gains from risk-sharing among Middle East and North African (MENA)
countries, including the oil-rich Gulf region and the resource-scarce
economies. We find that the overall potential welfare gains across MENA
countries are positive for all countries under the assumption of full
risk-sharing. The potential welfare gains among the six Gulf Cooperation
Council (GCC) countries are positive even though the magnitudes are
smaller compared to those of the rest of the MENA region. We also quantify
the extent of risk-sharing for the MENA region and show that it is
significant for the MENA region and its subgroups; however, we could not
find any sign of inter-temporal smoothing across the same groups.
Decomposing the aggregate output shocks shows that the extent of
risk-sharing is significant when only positive output shocks exist across
the resource-scarce MENA economies. However, we observe that GCC countries
share output risks with each other even under negative output shocks.
Journal: Applied Economics
Pages: 3370-3377
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.687099
File-URL: http://hdl.handle.net/10.1080/00036846.2012.687099
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3370-3377
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Title: Ad valorem tariff and spatial equilibrium models
Abstract:
The objectives of this article are to illustrate theoretically and
empirically how to incorporate an ad valorem tariff in
spatial equilibrium models and show the equivalence of three approaches
(primal, dual and MCP) of spatial equilibrium trade modelling. The article
lays out in detail the theory, empirical applications and the results for
all three approaches so that trade modellers can easily follow and apply
them in their work. The primal approach is commonly used by spatial
equilibrium modellers, though the dual approach corresponds to the
textbook depiction of consumer surplus, producer surplus and gains from
trade. The Mixed Complementarity Problem (MCP) is not commonly used by
spatial equilibrium modellers, though it is relatively simpler if the
modeller knows the equilibrium conditions. This article also presents
advantages and disadvantages of each approach.
Journal: Applied Economics
Pages: 3378-3386
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.711943
File-URL: http://hdl.handle.net/10.1080/00036846.2012.711943
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3378-3386
Template-Type: ReDIF-Article 1.0
Author-Name: Åsa Marie Hansson
Author-X-Name-First: Åsa Marie
Author-X-Name-Last: Hansson
Author-Name: Karin Olofsdotter
Author-X-Name-First: Karin
Author-X-Name-Last: Olofsdotter
Title: FDI, Taxes and Agglomeration Economies in the EU15
Journal: Applied Economics
Pages: 3387-3387
Issue: 23
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.707007
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707007
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Handle: RePEc:taf:applec:v:45:y:2013:i:23:p:3387-3387
Template-Type: ReDIF-Article 1.0
Author-Name: Jaap E. Wieringa
Author-X-Name-First: Jaap E.
Author-X-Name-Last: Wieringa
Author-Name: Peter S. H. Leeflang
Author-X-Name-First: Peter S. H.
Author-X-Name-Last: Leeflang
Title: Modelling the effects of promotion expenditures on sales of pharmaceuticals
Abstract:
The successful innovation of pharmaceuticals requires a substantial
amount of marketing support, despite concerns about the effects of these
marketing efforts. This study considers prior findings that indicate that
higher marketing expenditures for a brand reduce its price elasticity of
demand, which may lead to higher prices, in the context of the Dutch
pharmaceutical market. The authors find that parameters are heterogeneous
across brands, and that marketing effects differ across product life cycle
stages. They propose a separate analysis of established and new brands.
For established brands, marketing efforts neither have a positive effect
on sales, nor do they affect the price elasticity. For new brands, several
proposed models might capture their diffusion pattern; the
diffusion-of-innovation models provide the best results. Marketing
accelerates the rate of diffusion and leads to a higher baseline level of
sales.
Journal: Applied Economics
Pages: 3389-3399
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.711940
File-URL: http://hdl.handle.net/10.1080/00036846.2012.711940
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3389-3399
Template-Type: ReDIF-Article 1.0
Author-Name: Shelagh A. Heffernan
Author-X-Name-First: Shelagh A.
Author-X-Name-Last: Heffernan
Author-Name: Xiaolan Fu
Author-X-Name-First: Xiaolan
Author-X-Name-Last: Fu
Author-Name: Xiaoqing (Maggie) Fu
Author-X-Name-First: Xiaoqing (Maggie)
Author-X-Name-Last: Fu
Title: Financial innovation in the UK
Abstract:
This study employs a national survey of over 1100 British financial firms
to ascertain the determinants of financial innovation and their sales
success using the logit and the generalized Tobit models. We find that the
likelihood of financial innovation rises with the size of financial firms,
employee education, greater expenditure on research and development, the
availability of finance and the extent to which firms cooperate with each
other. Perceptions of economic risk and innovation costs are also
influential. R&D, cooperation and human capital are the main variables
driving the success of financial innovation, measured by the percentage
share of innovations sold. Firms in London/the south have a significantly
greater tendency to innovate, though Scotland also does well. Stock
broking, fund management and related activities are more innovative than
firms in the financial intermediation and pension/insurance sectors.
Journal: Applied Economics
Pages: 3400-3411
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.711942
File-URL: http://hdl.handle.net/10.1080/00036846.2012.711942
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3400-3411
Template-Type: ReDIF-Article 1.0
Author-Name: M. E. Arouri
Author-X-Name-First: M. E.
Author-X-Name-Last: Arouri
Author-Name: H. Ben Ameur
Author-X-Name-First: H.
Author-X-Name-Last: Ben Ameur
Author-Name: N. Jawadi
Author-X-Name-First: N.
Author-X-Name-Last: Jawadi
Author-Name: F. Jawadi
Author-X-Name-First: F.
Author-X-Name-Last: Jawadi
Author-Name: W. Louhichi
Author-X-Name-First: W.
Author-X-Name-Last: Louhichi
Title: Are Islamic finance innovations enough for investors to escape from a financial downturn? Further evidence from portfolio simulations
Abstract:
Does Islamic finance constitute a promising solution for the current
global financial crisis and are Islamic financial innovations enough to
reassure investors, stabilize financial systems and provide them with a
means of escaping from financial downturns? This article addresses these
questions while investigating the dynamics of Islamic and conventional
stock prices over the last few years. In particular, we apply Multivariate
Vector Autoregressive (VAR) tools to test the interaction between
conventional and Islamic financial products, and implement the Granger
causality test to specify the dependence orientation of feedback between
Islamic and conventional stock prices. Our article differs from previous
work on the topic in that it develops portfolio simulations to determine
whether Islamic finance can supplant conventional finance by generating
investment and diversification opportunities during periods of crisis. In
addition, we develop optimal portfolio strategies and investment
proportions for conventional and Islamic funds to ensure the best resource
allocation. Our main findings are: (i) the impact of the current crisis on
the Islamic finance industry is less marked than on conventional finance,
(ii) investment in Islamic products generates high returns, (iii)
portfolios that include Islamic products reduce systemic risk and generate
significant diversification benefits, (iv) the US crisis has led to
significant changes in resource allocation through changes in investment
choices.
Journal: Applied Economics
Pages: 3412-3420
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.707776
File-URL: http://hdl.handle.net/10.1080/00036846.2012.707776
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Template-Type: ReDIF-Article 1.0
Author-Name: Houdou Basse Mama
Author-X-Name-First: Houdou
Author-X-Name-Last: Basse Mama
Author-Name: Alexander Bassen
Author-X-Name-First: Alexander
Author-X-Name-Last: Bassen
Title: Contagion effects in the electric utility industry following the Fukushima nuclear accident
Abstract:
This article examines intra-industry information transfers in the
European and Japanese electric industry in the wake of the Fukushima
nuclear accident. For European conventional utilities, the downward price
drift is relatively small and transient in nature. Yet, we find positive
and lingering effects of the accident on the shares of alternative
electric utilities. Japanese utilities were hit the hardest and the shock
seems to be long-lasting. An interesting finding of this article is the
abrupt increase (decrease) in the systematic risk of conventional
(alternative) electric utilities following the event. In Europe, we could
only document a decrease in the idiosyncratic risk of conventional
utilities, pointing to enhanced return synchronicity in the conventional
power industry. In turn, total risk seems to be stationary around the
accident. In rebuttal, idiosyncratic and systematic risks (and
consequently total risk) have substantially risen in Japan since the
event. Finally, intercept values related to European utilities remained
stable around the accident while Japanese utilities incurred a substantial
decline in their daily average returns as captured by alpha shifts.
Journal: Applied Economics
Pages: 3421-3430
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.714072
File-URL: http://hdl.handle.net/10.1080/00036846.2012.714072
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3421-3430
Template-Type: ReDIF-Article 1.0
Author-Name: Tae-Jeong Kim
Author-X-Name-First: Tae-Jeong
Author-X-Name-Last: Kim
Author-Name: Geoffrey J. D. Hewings
Author-X-Name-First: Geoffrey J. D.
Author-X-Name-Last: Hewings
Title: Inter-regional endogenous growth under the impacts of demographic changes
Abstract:
This article attempts to project the economic paths for the individual
Midwest states (Illinois, Indiana, Michigan, Ohio and Wisconsin, as well
as the rest of the US) in the near future when the population ageing
becomes more pronounced. To accomplish this task, a dynamic general
equilibrium model is developed so that it could incorporate the
inter-regional transactions and endogenous growth mechanisms within the
framework of an Overlapping Generations (OLG) model. Key parameter values
associated with the regional interconnections were assigned using a
multi-regional Social Accounting Matrix (SAM) of the Midwest states. Two
different steady-state results were presented with two different
age-cohort population structures corresponding to year 2007 and 2030.
These steady-state results imply that the rate of declining of per-capita
output is projected to be heterogeneous across the regions due to
different developments of age-cohort population structures and
consequently different levels of endogenously determined educational
investment of workers. Also, two steady-state simulation results revealed
that the development of output price in a certain region reflects the
dynamics of demographics of every region. Meanwhile, the dynamic
simulation results reveal that the per-capita output of every region is
projected to grow positively in the near future when the population ageing
will be pronounced. However, the growth rate of the per-capita output is
projected to be heterogeneous across the regions: the regions with
high-skilled workers hold the potential threat that population ageing
could give more negative impacts on the economy due to the relatively
sluggish growth of human capital stock. Also, the dynamic simulation
results show that certain regions in the Midwest will experience their
terms of trade deterioration in the near future, implying that careful
attention should be given to their future trade conditions.
Journal: Applied Economics
Pages: 3431-3449
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.709603
File-URL: http://hdl.handle.net/10.1080/00036846.2012.709603
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3431-3449
Template-Type: ReDIF-Article 1.0
Author-Name: Kui-Wai Li
Author-X-Name-First: Kui-Wai
Author-X-Name-Last: Li
Title: The US monetary performance prior to the 2008 crisis
Abstract:
This article uses a Structural Vector Autoregressive (SVAR) approach to
study the different shocks to the monetary performance in the two decades
of the US economy prior to the 2008 financial crisis. By using the Federal
Fund Rate as a measure of change in the monetary policy, this study shows
that interest rate expectation is informative about the future movement of
Federal Fund Rate and the anticipated monetary policy should be one of the
crucial reasons in causing monetary and financial deterioration in the US
economy. This article discusses a possible conjecture of a low interest
rate trap when a persistent and prolonged low interest rate regime led to
financial instability.
Journal: Applied Economics
Pages: 3450-3461
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.714071
File-URL: http://hdl.handle.net/10.1080/00036846.2012.714071
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3450-3461
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: Economic uncertainty and corruption: evidence from a large cross-country data set
Abstract:
A vast amount of research has considered numerous causes and correlates
of corruption. Also, there have been many studies of the consequences of
various forms of uncertainty. However, exploration of the nexus between
economic uncertainty and corruption appears scarce. After providing an
intuitive and heuristic linkage between general economic uncertainty and
corruption, this article uses a large cross-country data set to augment a
fairly standard model with simple proxies for uncertainty and to
investigate how economic uncertainty might affect the prevalence of
corruption. In addition, a quantile-regression framework is used to judge
how the strength of various covariates may differ with the level of
corruption. Seven main points emerge from the estimates. First, economic
uncertainty is associated positively with corruption, and the relation
seems to be robust across measures of uncertainty and corruption. Second,
quantile-regression estimates indicate considerable parametric
heterogeneity across the distribution of corruption. Third, Gross Domestic
Product (GDP) per capita has the expected corruption-mitigating role.
Fourth, increased political rights and civil liberties also appear to
lower corruption. Fifth, greater government consumption is associated with
lower corruption. Sixth, while the hyperinflation dummy lacks significance
in most OLS regressions, its significance varies across the distribution
of corruption. Seventh, neither police force nor government subsidies
shows significance, but transition economies have more corruption.
Journal: Applied Economics
Pages: 3462-3468
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.714073
File-URL: http://hdl.handle.net/10.1080/00036846.2012.714073
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3462-3468
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Author-Name: Heleen Mees
Author-X-Name-First: Heleen
Author-X-Name-Last: Mees
Title: Approximating the DGP of China's quarterly GDP
Abstract:
We demonstrate that the Data Generating Process (DGP) of China's
cumulated quarterly Gross Domestic Product (GDP, current prices), as it is
reported by the National Bureau of Statistics of China (NBSC), can be
(very closely) approximated by a simple rule. This rule says that the
annual growth in any quarter is equal to the annual growth in its previous
quarter plus an error term that is only nonzero in the first quarter of
each year and with small variance. We show that this rule fits the data
well for the period 1992Q1--2005Q4 for total GDP. It also gives accurate
forecasts for 2006Q1--2009Q4.
Journal: Applied Economics
Pages: 3469-3472
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.709604
File-URL: http://hdl.handle.net/10.1080/00036846.2012.709604
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3469-3472
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Cellini
Author-X-Name-First: Roberto
Author-X-Name-Last: Cellini
Author-Name: Tiziana Cuccia
Author-X-Name-First: Tiziana
Author-X-Name-Last: Cuccia
Title: Museum and monument attendance and tourism flow: a time series analysis approach
Abstract:
This article takes a time-series analysis approach to evaluate the
directions of causality between tourism flows, on the one side, and museum
and monument attendance, on the other. We consider Italy as a case study,
and analyse monthly data over the period January 1996 to December 2010.
All the considered series are seasonally integrated, and co-integration
links emerge. We focus on the error-correction mechanism among
co-integrated time series to detect the directional link(s) of causality.
Clear-cut results emerge: bi-directional causality exists in the long-run
dynamics, but it is the long-run dynamics of visits to museums and
monuments that mainly adjust to tourism variables (arrivals, overnights,
average stays). In the short run, there are some causal effects going from
the cultural sites’ attendance to tourism dynamics. The
nonstationary nature of time series, their co-integration relationships
and the direction of causal links suggest specific implications for
tourism and cultural policies.
Journal: Applied Economics
Pages: 3473-3482
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.716150
File-URL: http://hdl.handle.net/10.1080/00036846.2012.716150
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3473-3482
Template-Type: ReDIF-Article 1.0
Author-Name: Antoine Bonleu
Author-X-Name-First: Antoine
Author-X-Name-Last: Bonleu
Author-Name: Gilbert Cette
Author-X-Name-First: Gilbert
Author-X-Name-Last: Cette
Author-Name: Guillaume Horny
Author-X-Name-First: Guillaume
Author-X-Name-Last: Horny
Title: Capital utilization and retirement
Abstract:
This empirical analysis assesses the determinants of firms’
capital retirement. Particular attention is paid to the impact of the
business cycle and the capital usage intensity. Compared to previous
studies, we directly control for the capital utilization and disentangle
the short-run mechanisms from the long-run ones. The analysis is carried
out with an original and large firm-level dataset. The main results of the
analysis may be summarized as follows: (i) the retirement rate increases
during slowdowns and decreases during booms. This corresponds to a
countercyclical capital retirement; (ii) the capital retirement rate
increases with the capital usage intensity in the long run. This
corresponds to a wear and tear effect, which is small compared to the
countercyclical one; (iii) the capital retirement rate increases with the
average age of capital; (iv) the profit rate and the wage cost per capita
do not have a significant impact on the retirement rate.
Journal: Applied Economics
Pages: 3483-3494
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.720013
File-URL: http://hdl.handle.net/10.1080/00036846.2012.720013
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3483-3494
Template-Type: ReDIF-Article 1.0
Author-Name: Pui Sun Tam
Author-X-Name-First: Pui Sun
Author-X-Name-Last: Tam
Title: Finite-sample distribution of the augmented Dickey--Fuller test with lag optimization
Abstract:
This article presents a response surface analysis for the distribution of
the augmented Dickey--Fuller (ADF) test with optimized lag order in the
autoregression using frequently applied data-dependent methods. Simulation
results demonstrate that finite-sample distribution of the test depends
critically on the lag-order determination rule. The univariate test and
its panel counterparts exhibit size distortion when the lag order in the
autoregression is optimized but inappropriate distribution is employed in
test implementation. Response surface coefficients reported for the
finite-sample distribution of the test with lag optimization are therefore
useful tools for practitioners in applied research. The simulation
evidence and practical use of the response surface coefficients are
substantiated with empirical illustrations.
Journal: Applied Economics
Pages: 3495-3511
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.724159
File-URL: http://hdl.handle.net/10.1080/00036846.2012.724159
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3495-3511
Template-Type: ReDIF-Article 1.0
Author-Name: Sungju Chun
Author-X-Name-First: Sungju
Author-X-Name-Last: Chun
Author-Name: Pierre Perron
Author-X-Name-First: Pierre
Author-X-Name-Last: Perron
Title: Comparisons of robust tests for shifts in trend with an application to trend deviations of real exchange rates in the long run
Abstract:
We study the finite sample properties of tests for structural changes in
the trend function of a time series that do not require knowledge of the
degree of persistence in the noise component. The tests of interest are
the quasi-Feasible Generalized Least Squares (FGLS) procedure by Perron
and Yabu (2009b) and the weighted average of the regression
t-statistics by Harvey et al. (2009),
both of which have the same limit distribution whether the noise component
is stationary or has a unit-root. We analyse the finite sample size and
power properties of these tests under a variety of Data-Generating
Processes (DGPs). The results show that the Perron--Yabu test has greater
power overall. With respect to the size, the Harvey--Leybourne--Taylor
test exhibits larger size distortions unless a moving-average component is
present. Using the Perron and Yabu procedure to test for structural
changes in the trend function of long-run real exchange rates with respect
to the US dollar indicates that for 17 out of 19 countries, the series
have experienced a shift in trend since the late nineteenth century.
Journal: Applied Economics
Pages: 3512-3528
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.724160
File-URL: http://hdl.handle.net/10.1080/00036846.2012.724160
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3512-3528
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno De Borger
Author-X-Name-First: Bruno De
Author-X-Name-Last: Borger
Author-Name: Kristiaan Kerstens
Author-X-Name-First: Kristiaan
Author-X-Name-Last: Kerstens
Author-Name: Diego Prior
Author-X-Name-First: Diego
Author-X-Name-Last: Prior
Author-Name: Ignace Van de Woestyne
Author-X-Name-First: Ignace Van de
Author-X-Name-Last: Woestyne
Title: Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions
Journal: Applied Economics
Pages: 3529-3529
Issue: 24
Volume: 45
Year: 2013
Month: 8
X-DOI: 10.1080/00036846.2012.712786
File-URL: http://hdl.handle.net/10.1080/00036846.2012.712786
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Handle: RePEc:taf:applec:v:45:y:2013:i:24:p:3529-3529
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Deininger
Author-X-Name-First: Klaus
Author-X-Name-Last: Deininger
Author-Name: Daniel Ayalew Ali
Author-X-Name-First: Daniel Ayalew
Author-X-Name-Last: Ali
Author-Name: Tekie Alemu
Author-X-Name-First: Tekie
Author-X-Name-Last: Alemu
Title: Productivity effects of land rental market operation in Ethiopia: evidence from a matched tenant--landlord sample
Abstract:
As countries increasingly strive to transform their economies from
agriculture‐based into a diversified one, land rental will become
of greater importance. It will thus be critical to complement research on
the efficiency of specific land rental arrangements such as sharecropping
with an inquiry into the broader productivity impacts of the land rental
market. Plot‐level data for a matched landlord--tenant sample in an
environment where sharecropping dominates allow us to explore both issues.
We find that pure output sharing leads to significantly lower levels of
efficiency that can be attenuated by monitoring while the inefficiency
disappears if inputs are shared as well. Rentals transfer land to more
productive producers but realization of this productivity advantage is
prevented by the inefficiency of contractual arrangements, suggesting
changes that would prompt adoption of different contractual arrangements
could have significant benefits.
Journal: Applied Economics
Pages: 3531-3551
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.725933
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725933
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3531-3551
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Stefano Castriota
Author-X-Name-First: Stefano
Author-X-Name-Last: Castriota
Author-Name: Melania Michetti
Author-X-Name-First: Melania
Author-X-Name-Last: Michetti
Title: The effect of fair trade affiliation on child schooling: evidence from a sample of Chilean honey producers
Abstract:
We evaluate the impact of Fair Trade (FT) affiliation on child schooling
within a sample of Chilean honey producers with a retrospective panel data
approach. From a theoretical point of view, we argue that FT should have a
positive effect on child schooling since it generates a short-run pure
income effect together with a medium-run productivity effect on both adult
and child wages. On the other hand, because of the higher productivity
generated by the medium-run effect, the opportunity cost of child
education increases if they work with their parents. The direction of the
impact of FT affiliation on child schooling is therefore uncertain and
requires empirical testing. Our econometric findings document a positive
and significant impact of affiliation years on child schooling after
controlling for endogeneity and heterogeneity between the treatment and
control sample.
Journal: Applied Economics
Pages: 3552-3563
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.727980
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727980
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3552-3563
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin R. Auer
Author-X-Name-First: Benjamin R.
Author-X-Name-Last: Auer
Title: Can consumption-based asset pricing models using monetary conditioning variables explain the cross-section of German stock returns?
Abstract:
In this article, we analyse whether simple Consumption-based Capital
Asset Pricing Models (CCAPMs) using monetary conditioning information
(growth of the money aggregates M1, M2 and M3) can explain the
cross-section of German size, book-to-market and industry portfolio
returns. Our results show that models having stochastic discount factor
parameters that vary with money aggregates can reduce the pricing errors
of models with constant parameters. However, a large proportion of the
cross-sectional variation remains unexplained.
Journal: Applied Economics
Pages: 3564-3573
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.725935
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725935
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3564-3573
Template-Type: ReDIF-Article 1.0
Author-Name: Oludele Akinloye Akinboade
Author-X-Name-First: Oludele Akinloye
Author-X-Name-Last: Akinboade
Author-Name: Emilie Chanceline Kinfack
Author-X-Name-First: Emilie Chanceline
Author-X-Name-Last: Kinfack
Title: Interest rate reforms, financial deepening and economic growth in Cameroon: an empirical investigation
Abstract:
The impact of interest rate reforms on financial deepening and growth in
Cameroon is examined. We employ five proxies of financial deepening
against deposit rate, a proxy for interest rate reforms. The impact of
interest rate reforms on financial deepening is sensitive to the proxy
used for financial deepening. The impact is almost negative and
significant for all the indicators, except for the ratio of broad money to
Gross Domestic Product, where it is positive and significant in the first
lag. This means that financial repression helps improve broad money and
hinders the development of the other indicators of financial development
in Cameroon.
Journal: Applied Economics
Pages: 3574-3586
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2011.566200
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566200
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3574-3586
Template-Type: ReDIF-Article 1.0
Author-Name: Tidiane Kinda
Author-X-Name-First: Tidiane
Author-X-Name-Last: Kinda
Title: Beyond natural resources: horizontal and vertical FDI diversification in Sub-Saharan Africa
Abstract:
This article uses firm-level data to analyse the drivers of Foreign
Direct Investment (FDI) to the manufacturing and services sectors of 30
Sub-Saharan African countries. It shows that improving the investment
climate helps to attract aggregate FDI. By analysing disaggregate FDI
data, the article establishes that there is considerable contrast in
behaviour between vertical FDI (foreign firms producing for export) and
horizontal FDI (foreign firms producing for local markets). In particular,
the latter firms are attracted to areas with higher trade regulations,
highlighting their interest in protected markets. Furthermore, horizontal
FDI is more affected by financing and human capital constraints and less
affected by infrastructure and institutional constraints than vertical FDI
is.
Journal: Applied Economics
Pages: 3587-3598
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.678982
File-URL: http://hdl.handle.net/10.1080/00036846.2012.678982
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3587-3598
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Sutton
Author-X-Name-First: Andrew
Author-X-Name-Last: Sutton
Title: On the determinants of UK unemployment and the Great Recession: analysing the gross flows data
Abstract:
This article provides a detailed analysis of the gross worker flows data
in the United Kingdom between 1997 and 2010, with particular emphasis on
the 2008/2009 recession and its aftermath. Utilizing flows data from the
Labour Force Survey (LFS), the dominant macroeconomic factors driving
unemployment in the United Kingdom before, during and after the
recessionary period are identified. Amongst the salient findings of this
article is a striking decline in job-to-job movements throughout and
beyond the recent recession. This discovery adds a new dimension to the
existing literature in this field.
Journal: Applied Economics
Pages: 3599-3616
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.725934
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725934
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3599-3616
Template-Type: ReDIF-Article 1.0
Author-Name: H. C. Huang
Author-X-Name-First: H. C.
Author-X-Name-Last: Huang
Author-Name: P. S. Tung
Author-X-Name-First: P. S.
Author-X-Name-Last: Tung
Title: Does option provide more informative content than stock after regulation fair disclosure?
Abstract:
This article examines the impact of Regulation Fair Disclosure (Reg FD),
which intends to eliminate selective disclosure to only a few privileged
interested parties, on the information embedded in the stock-and-option
markets prior to tender offer announcements. In the pre-announcement
period after Reg FD, the volume of public option information contains less
information about subsequent stock price movements. Although the quantity
of public information may be higher after Reg FD, the inferior quality of
publicly available option information dominates the higher quantity. Thus,
the predictive power of option information decreases. In the post-RFD
pre-announcement period, the volume of public option information is more
informative than the volume of stock private information. It indicates
that although the quality of private stock information is superior to that
of public option information, the much lower quantity of stock information
results in a lower predictive power of private stock information than that
of public option information.
Journal: Applied Economics
Pages: 3617-3624
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.725936
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725936
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3617-3624
Template-Type: ReDIF-Article 1.0
Author-Name: Keith A. Bender
Author-X-Name-First: Keith A.
Author-X-Name-Last: Bender
Author-Name: Rebecca M. Neumann
Author-X-Name-First: Rebecca M.
Author-X-Name-Last: Neumann
Author-Name: John Douglas Skåtun
Author-X-Name-First: John Douglas
Author-X-Name-Last: Skåtun
Title: Real and perceived losses from unemployment: a cross-country study
Abstract:
This article compares the Unemployment Rate (UR) as a measure of
inefficiency with several other potential measures across 18 Organization
for Economic Co-operation and Development (OECD) countries. Results show
that the UR is not a very good measure of relative inefficiency between
countries, it overestimates the number of individuals who would get jobs
if the market is clear, the Dead Weight Losses (DWLs) of UR are remarkably
low even in high unemployment countries and the aggregate perceived
monetary losses by the unemployed as a proportion of Gross Domestic
Product (GDP) are also uniformly low, although inframarginal individuals
in some countries may perceive their losses to be high.
Journal: Applied Economics
Pages: 3625-3636
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.727977
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727977
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3625-3636
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Lederman
Author-X-Name-First: Daniel
Author-X-Name-Last: Lederman
Author-Name: Taye Mengistae
Author-X-Name-First: Taye
Author-X-Name-Last: Mengistae
Author-Name: Lixin Colin Xu
Author-X-Name-First: Lixin Colin
Author-X-Name-Last: Xu
Title: Microeconomic consequences and macroeconomic causes of foreign direct investment in southern African economies
Abstract:
The authors use a new data set on firms in 13 countries of the Southern
African Development Community (SADC) and comparators from other regions to
identify the benefits and determinants of FDI in this region. Foreign
Direct Investment (FDI) has facilitated local development in the SADC.
Foreign-owned firms perform better than domestic firms, are larger, and
locate in richer and better-governed countries and in countries with more
competitive financial intermediaries. They are also more likely to export
than domestic firms and evidence suggests that they might have positive
spillover effects on domestic firms. Based on a standard empirical model,
the SADC is attracting the inward FDI per capita that the region's level
of income would predict. But this means that there are less capital
inflows per capita to the region than there are to wealthier parts of the
developing world. Moreover, the SADC is attracting less FDI than
comparators for reasons that are possibly more fundamental than current
income, namely, countries’ past growth record, demographic
structure and the quality of physical infrastructure. Interestingly,
inward FDI is less sensitive to variation in income within the SADC than
in other parts of the world, but is more responsive to changes in
country's openness to trade.
Journal: Applied Economics
Pages: 3637-3649
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.727978
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727978
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3637-3649
Template-Type: ReDIF-Article 1.0
Author-Name: Nicole M. Aulerich
Author-X-Name-First: Nicole M.
Author-X-Name-Last: Aulerich
Author-Name: Scott H. Irwin
Author-X-Name-First: Scott H.
Author-X-Name-Last: Irwin
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Title: Returns to individual traders in agricultural futures markets: skill or luck?
Abstract:
Using individual trader data from the Commodity Futures Trading
Commission's (CFTC) Large Trader Reporting System (LTRS) for the period
January 2000 to September 2009, this article investigates whether
noncommercial traders in the corn, live cattle and coffee futures markets
persist in making profits. Two out-of-sample measures of skill -- a winner
and a loser ranking test and a top and a bottom decile test -- are used to
analyse the ability of traders to consistently perform well at monthly,
quarterly and annual time horizons. The findings identify significant
persistence in rankings -- traders in the top half of the profit
distribution in a time period tend to stay in the top half in the next
period. Differences in magnitude of profitability between the top and
bottom deciles also provide support that persistent skill exists among the
top 10% of traders. Detailed examination of annual rankings for those
traders who were most continuously in the markets further reveals
persistence in profits for a smaller subset of traders, as well as an
indication of persistence in the face of losses.
Journal: Applied Economics
Pages: 3650-3666
Issue: 25
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.727979
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727979
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Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3650-3666
Template-Type: ReDIF-Article 1.0
Author-Name: Philipp B. Schuster
Author-X-Name-First: Philipp B.
Author-X-Name-Last: Schuster
Title: One for all and all for one: privatization and Universal Service provision in the postal sector
Abstract:
Universal Service provision has a special role for the public utilities
sector in many Organization for Economic Co-operation and Development
(OECD) countries. These public utilities have largely been subject to
privatization during the last 3 decades. Efficiency effects of
privatization are widely documented while the impacts on the quality and
accessibility of the Universal Service are not much examined. By using a
unique dataset on privatization for 21 countries over the period
1980--2007 for the postal sector, we are able to show that privatization,
in particular formal privatization, has led to a decrease in the quality
of the Universal Service.
Journal: Applied Economics
Pages: 3667-3682
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.727982
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727982
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3667-3682
Template-Type: ReDIF-Article 1.0
Author-Name: David G. McMillan
Author-X-Name-First: David G.
Author-X-Name-Last: McMillan
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: The relationship between temperature and CO2 emissions: evidence from a short and very long dataset
Abstract:
The debate regarding rising temperatures and CO2 emissions has
attracted the attention of economists employing recent econometric
techniques. This article extends the previous literature using a dataset
that covers 800 000 years, as well as a shorter dataset, and
examines the interaction between temperature and CO2 emissions.
Unit root tests reveal a difference between the two datasets. For the long
dataset, all tests support the view that both temperature and
CO2 are stationary around a constant. For the short dataset,
temperature exhibits trend-stationary behaviour, while CO2
contains a unit root. This result is robust to nonlinear trends or trend
breaks. Modelling the long dataset reveals that while contemporaneous
CO2 appears positive and significant in the temperature
equation, including lags results in a joint effect that is near zero. This
result is confirmed using a different lag structure and Vector
Autoregressive (VAR) model. A Generalized Method of Moments (GMM) approach
to account for endogeneity suggests an insignificant relationship. In sum,
the key result from our analysis is that CO2 has, at best, a
weak relationship with temperature, while there is no evidence of trending
when using a sufficiently long dataset. Thus, as a secondary result we
highlight the danger of using a small sample in this context.
Journal: Applied Economics
Pages: 3683-3690
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.729955
File-URL: http://hdl.handle.net/10.1080/00036846.2012.729955
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3683-3690
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Paradiso
Author-X-Name-First: Antonio
Author-X-Name-Last: Paradiso
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Title: A New Keynesian IS curve for Australia: is it forward looking or backward looking?
Abstract:
This article estimates the forward looking, backward looking and an
extended version of the New Keynesian IS curve for Australia. The validity
of these models is investigated by imposing the constraint on real rate of
interest as well as when the constraint is relaxed. Two measures of output
gap, namely GAP1 (constructed using the unobserved
components approach) and GAP2 (constructed using a
quadratic trend) are utilized. Our results suggest that the baseline
backward looking and forward looking models are overwhelmingly rejected by
the data. This evidence strongly supports the extended backward looking
model (with GAP2) being relevant for monetary policy
analysis.
Journal: Applied Economics
Pages: 3691-3700
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.718068
File-URL: http://hdl.handle.net/10.1080/00036846.2012.718068
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3691-3700
Template-Type: ReDIF-Article 1.0
Author-Name: V. Bouvatier
Author-X-Name-First: V.
Author-X-Name-Last: Bouvatier
Author-Name: S. Rigot
Author-X-Name-First: S.
Author-X-Name-Last: Rigot
Title: Pension funds' allocations to hedge funds: an empirical analysis of US and Canadian defined benefit plans
Abstract:
This article investigates the characteristics of US and Canadian pension
funds that allocate assets to hedge funds. The typical pension fund that
invests in hedge funds is a large sophisticated pension fund that
diversifies its portfolio across numerous classes of investments, private
equity in particular, uses a core-satellite organization and has access to
low delegation costs for alternative assets. Moreover, we find that
pension funds investing in hedge funds significantly obtained higher
global returns.
Journal: Applied Economics
Pages: 3701-3710
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.725932
File-URL: http://hdl.handle.net/10.1080/00036846.2012.725932
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3701-3710
Template-Type: ReDIF-Article 1.0
Author-Name: Yves Croissant
Author-X-Name-First: Yves
Author-X-Name-Last: Croissant
Author-Name: William Roy
Author-X-Name-First: William
Author-X-Name-Last: Roy
Author-Name: Joan Canton
Author-X-Name-First: Joan
Author-X-Name-Last: Canton
Title: Reducing urban public transport costs by tendering lots: a panel data estimation
Abstract:
Allotment is, for urban authorities, a governance strategy to reduce
public transport costs. It consists of dividing a network into several
lots, so as to multiply the number of calls for tender. On the one hand,
gains should be obtained by increasing competition for the market and
reducing the costs of obtaining accurate information. On the other hand,
cutting a network into several parts is also expected to have negative
consequences on production costs, in terms of lower returns to scale. Many
industry stakeholders believe that the latter element more than
compensates for the former. In this article, we estimate a translog cost
function with a panel of 141 French urban public transport networks. Our
main conclusion is that scale economies are exhausted for a production of
about 3 million vehicle-kilometres per year. Therefore, as far as returns
to scale are concerned, allotment would reduce the costs of public
transport services for the main cities of our sample. A second dividend
for allotment is then presented and implies that the assumed trade-off
between returns to scale and increased competition is irrelevant.
Journal: Applied Economics
Pages: 3711-3722
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.730133
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730133
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3711-3722
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Author-Name: Ricardo Gairifo
Author-X-Name-First: Ricardo
Author-X-Name-Last: Gairifo
Title: Abnormal returns before acquisition announcements: evidence from Europe
Abstract:
Acquisition announcements influence the stock price of target firms,
providing an opportunity for insiders to obtain significant abnormal
returns. We study the presence of positive abnormal returns before the
announcement date, in target firms, quoted in Euronext markets (Belgium,
France, The Netherlands and Portugal) from 2001 to 2007. We investigate
whether the pre-announcement run-up of prices can be explained by rumours
in the media and the percentage of capital previously owned by the bidding
firm, among other factors. We examine cumulative abnormal returns in an
event window of 60 days prior the acquisition announcement, with the event
date adjusted for the previous disclosure of news about the acquisition,
in the media. We compute a run-up index, and find that there are abnormal
positive returns before the announcement date, confirming previous
studies. We find that a significant part of the run-up is explained by:
(i) market anticipation triggered by legitimate sources of information,
namely, rumours in the media about the possibility of an acquisition bid
and (ii) the percentage of capital previously owned in the target firm, by
the bidding firm.
Journal: Applied Economics
Pages: 3723-3732
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.730134
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730134
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3723-3732
Template-Type: ReDIF-Article 1.0
Author-Name: F. V. Vieira
Author-X-Name-First: F. V.
Author-X-Name-Last: Vieira
Author-Name: M. Holland
Author-X-Name-First: M.
Author-X-Name-Last: Holland
Author-Name: C. Gomes da Silva
Author-X-Name-First: C. Gomes
Author-X-Name-Last: da Silva
Author-Name: L. C. Bottecchia
Author-X-Name-First: L. C.
Author-X-Name-Last: Bottecchia
Title: Growth and exchange rate volatility: a panel data analysis
Abstract:
The aim of this article is to assess the role of Real Exchange Rate (RER)
volatility on long-run economic growth for a set of 82 advanced and
emerging economies, using a panel data set ranging from 1970 to 2009. With
an accurate measure for exchange rate volatility, the results for the
two-step system Generalized Method of Moments (GMM) panel growth models
show that a more (less) volatile RER has a significant negative (positive)
impact on economic growth. The results are also robust for different model
specifications.
Journal: Applied Economics
Pages: 3733-3741
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.730135
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730135
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3733-3741
Template-Type: ReDIF-Article 1.0
Author-Name: Toshio Utsunomiya
Author-X-Name-First: Toshio
Author-X-Name-Last: Utsunomiya
Title: A new approach to the effect of intervention frequency on the foreign exchange market: evidence from Japan
Abstract:
This article estimates and analyses the effect of intervention frequency
on the yen/dollar market, using daily intervention data. We examine using
a nonlinear methodology, with the frequency of intervention from April
1991 to December 2005 as a focal explanatory variable. In this article, we
also introduce a flexible target zone model that is capable of
characterizing the dynamic behaviour of an exchange rate implied by the
original target zone model of Krugman and its modifications. The empirical
results show the importance of considering the threshold effect when
analysing the effect of intervention due to the presence of asymmetry in
the foreign exchange market. Moreover, we show that a high frequency
intervention stabilizes the exchange rate by reducing exchange rate
volatility, especially when the yen appreciates.
Journal: Applied Economics
Pages: 3742-3759
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.730136
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730136
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3742-3759
Template-Type: ReDIF-Article 1.0
Author-Name: Maty Konte
Author-X-Name-First: Maty
Author-X-Name-Last: Konte
Title: A curse or a blessing? Natural resources in a multiple growth regimes analysis
Abstract:
The literature on the impact of an abundance of natural resources on
economic performance remains inconclusive. In this article we consider the
possibility that countries may follow different growth regimes, and test
the hypothesis that whether natural resources are a curse or a blessing
depends on the growth regime to which an economy belongs. We follow recent
work that has used a mixture-of-regressions method to identify different
growth regimes, and find two regimes such that in one regime resources
have a positive impact on growth, while in the other they have a negative
impact or at best have no impact on growth. Our analysis of the
determinants of whether a country belongs or not to the blessed resources
regime indicates that the level of democracy plays an important role while
education and economic institutions have no effect.
Journal: Applied Economics
Pages: 3760-3769
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.730137
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730137
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3760-3769
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Ismail
Author-X-Name-First: Ahmad
Author-X-Name-Last: Ismail
Author-Name: Abed A. Abdallah
Author-X-Name-First: Abed A.
Author-X-Name-Last: Abdallah
Title: Acquirer's return and the choice of acquisition targets: does acquisition experience matter?
Abstract:
We study a sample of 6503 UK acquisitions completed between 1985 and 2004
and control for previous deals similarities. Returns for frequent
acquirers decrease constantly but they remain positive through high-order
deals. We do not detect an improving pattern of returns but, at best, a
stable one when the deal is settled for cash. Using
‘characteristics-based’ experience variables, our
multivariate analysis shows that the acquirers’ returns are
unaffected by prior acquisition experience. However, we find solid
evidence for acquirers drawing inferences from prior experience in
designing the method of payment, selecting the organizational form of the
target firm and engaging in focused acquisitions, which is consistent with
learning through acquisitions. The results are robust to various
consistency checks.
Journal: Applied Economics
Pages: 3770-3777
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.732688
File-URL: http://hdl.handle.net/10.1080/00036846.2012.732688
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3770-3777
Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo G. Campos
Author-X-Name-First: Rodolfo G.
Author-X-Name-Last: Campos
Author-Name: Iliana Reggio
Author-X-Name-First: Iliana
Author-X-Name-Last: Reggio
Author-Name: Dionisio Garc𫑐
Author-X-Name-First: Dionisio
Author-X-Name-Last: Garc𫑐
Title: Micro versus macro consumption data: the cyclical properties of the consumer expenditure survey
Abstract:
The Consumer Expenditure Survey (CEX) offers the most comprehensive
consumption data at the consumer level for the United States. Several
previous studies have shown a large gap between per-capita consumption
from the CEX and the aggregate Personal Consumption Expenditure (PCE)
series. While previous research has focused on consumption levels, we
focus on the cyclical properties of consumption. We find that the cyclical
properties of consumption expenditure data from the two sources are
quantitatively very different. This result calls for caution when using
CEX data for business cycle research.
Journal: Applied Economics
Pages: 3778-3785
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.732689
File-URL: http://hdl.handle.net/10.1080/00036846.2012.732689
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3778-3785
Template-Type: ReDIF-Article 1.0
Author-Name: Bente Halvorsen
Author-X-Name-First: Bente
Author-X-Name-Last: Halvorsen
Author-Name: Bodil M. Larsen
Author-X-Name-First: Bodil M.
Author-X-Name-Last: Larsen
Title: How serious is the aggregation problem? An empirical illustration
Abstract:
Heterogeneity in consumer behaviour may create problems with aggregation
across consumers. If so, we may not be able to make correct inferences
about behaviour based on aggregated data. However, using micro estimates
to predict aggregate demand responses to policy changes may also create a
bias if not aggregated properly. This may sound like a Catch 22 situation,
but it is not, as it is possible to calculate both micro and aggregate
demand responses based on microdata. The size of the aggregation bias is
an empirical question. In this article, we show how to calculate
theoretically consistent aggregate demand responses. We use both micro and
macro data for Norwegian household electricity consumption to illustrate
the magnitude and direction of different aggregation biases. We find
considerable aggregation biases, in particular, when estimating with macro
data.
Journal: Applied Economics
Pages: 3786-3794
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.732690
File-URL: http://hdl.handle.net/10.1080/00036846.2012.732690
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3786-3794
Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Christopher M. Duquette
Author-X-Name-First: Christopher M.
Author-X-Name-Last: Duquette
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Battleground states and voter participation in US presidential elections: an empirical test
Abstract:
The winner-take-all method of allocating Electoral College votes (in 48
of the 50 states) in US presidential elections has promoted interesting
behaviours by politicians and states that are evident throughout US
(economic) history. This analysis explores the impact that being a
‘battleground state’ in presidential elections has on future
voter participation rates. After quantifying the degree to which each
state is a battleground state, the empirical analysis proffers what it
refers to as the ‘battleground voting hypothesis’, which
argues that the greater the degree to which a given state is a
battleground state, the greater the expected benefits from voting in that
state and hence the greater the voter turnout in that state. The empirical
results suggest that the top-to-bottom ‘battleground state
effect’ generated an average of 7.8 additional percentage points in
voter participation in presidential elections over the period 1964--2008
for those states at the top of the scale.
Journal: Applied Economics
Pages: 3795-3799
Issue: 26
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.727981
File-URL: http://hdl.handle.net/10.1080/00036846.2012.727981
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Handle: RePEc:taf:applec:v:45:y:2013:i:26:p:3795-3799
Template-Type: ReDIF-Article 1.0
Author-Name: Mariano Kulish
Author-X-Name-First: Mariano
Author-X-Name-Last: Kulish
Author-Name: Stephen Elias
Author-X-Name-First: Stephen
Author-X-Name-Last: Elias
Title: Direct effects of money on aggregate demand: another look at the evidence
Abstract:
Now that a number of central banks are faced with short-term nominal
interest rates close to or at the zero lower bound, there is a renewed
interest in the long-running debate about whether or not changes in the
stock of money have direct effects. In particular, do changes in money
have additional effects on aggregate demand outside of those induced by
changes in short-term nominal interest rates? This article revisits and
reinterprets the empirical evidence based on single equation regressions
which is quite mixed, with some results supporting and other results
denying the existence of direct effects. We use a structural model with no
direct effects of money to show that the finding of positive and
statistically significant coefficients on real money growth can be
misleading. The model generates data that, when used to estimate analogues
of the empirical regressions, produce positive and statistically
significant coefficients on real money growth, similar to those often
found when using actual data. The problem is that single equation
regressions leave out a set of variables, which in turn, give rise to an
omitted variables bias in the estimated coefficients on real money growth.
Hence, they are an unreliable guide to calibrate monetary policies, in
general, including at the zero lower bound.
Journal: Applied Economics
Pages: 3801-3809
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.718067
File-URL: http://hdl.handle.net/10.1080/00036846.2012.718067
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3801-3809
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Yang
Author-X-Name-First: Juan
Author-X-Name-Last: Yang
Author-Name: Huawei Liu
Author-X-Name-First: Huawei
Author-X-Name-Last: Liu
Author-Name: David J. Leatham
Author-X-Name-First: David J.
Author-X-Name-Last: Leatham
Title: The multi-market analysis of a housing price transmission model
Abstract:
In this article, we examine dynamic relationships among housing prices
from four first-tier cities in China from December 2000 to May 2010 and
present an equilibrium model of housing price in multi-markets. By
explicitly incorporating and modelling endogenous price series in
competing housing markets, our empirical model is able to capture the
existence of long-run equilibrium relationships and important short-run
dynamics and price structures such as price leadership, price transmission
lag and asymmetric price responses. Such multi-market analysis has
generalized implications and can easily be applied to analyse the pricing
dynamics among other real estate markets in the world. Our major
contribution lies in two aspects. First, we employ an Error-Correction
Model (ECM) with Directed Acyclic Graphs (DAG) to study the price dynamics
in the four largest and key housing markets in China. Second, we uncover a
price transmission among these housing markets in China and provide an
insightful understanding of price adjustment across markets. The revealed
effective price transmission and high correlation among these different
markets actually is not a good thing for a stable financial system and for
the defence against price bubbles in the housing market.
Journal: Applied Economics
Pages: 3810-3819
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.734595
File-URL: http://hdl.handle.net/10.1080/00036846.2012.734595
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3810-3819
Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Hsin Huang
Author-X-Name-First: Tai-Hsin
Author-X-Name-Last: Huang
Author-Name: Zixiong Xie
Author-X-Name-First: Zixiong
Author-X-Name-Last: Xie
Title: Population and economic growth: a simultaneous equation perspective
Abstract:
This article examines the relationship between Population Growth (PG) and
Economic Growth (EG) in the framework of simultaneous structural equation
models. Based on Lewbel (2012), the structural parameters can be estimated
using the Generalized Method of Moments (GMM). Identification requires a
heteroscedastic covariance restriction that appears in some models of
endogeneity, measurement errors and panel data. This study obtains several
findings. First, the current and lagged variables of PG
negatively and positively affect EG in the short run.
Second, PG does not significantly influence
EG in the long run. Third, the reverse relations running
from EG to PG are weak in both the short
and long run, regardless of economic development conditions.
Journal: Applied Economics
Pages: 3820-3826
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.734596
File-URL: http://hdl.handle.net/10.1080/00036846.2012.734596
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3820-3826
Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Mazzanti
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Mazzanti
Author-Name: Antonio Musolesi
Author-X-Name-First: Antonio
Author-X-Name-Last: Musolesi
Title: The heterogeneity of carbon Kuznets curves for advanced countries: comparing homogeneous, heterogeneous and shrinkage/Bayesian estimators
Abstract:
We investigate Carbon Kuznets Curves (CKC) relationships for advanced
countries grouped in policy relevant groups -- North America and Oceania,
South Europe, North Europe -- by means of various homogeneous,
heterogeneous and shrinkage/Bayesian panel estimators. We try to provide
an answer to the question ‘how sensitive are the CKC estimates to
changes in the level of parameters' heterogeneity?’. We do find
that in coherence with their ‘policy and economic’
commitment to carbon reductions and environmental market-based instruments
implementation, bell shapes are present only for northern EU, which leads
the group of advanced countries. The other two lag behind. We show for the
first time that CKC shapes are present if we net out Europe of the
southern and less developed countries. This is coherent with the Kuznets
paradigm. The negative side of the tale is that they characterize a bunch
of few countries. Other advanced countries lag behind and are far from
reaching a CKC dynamics. Heterogeneous and Bayesian estimators clearly
show this, with the EU presenting turning points closely around
$13 000 per capita Gross Domestic Product (GDP). Heterogeneous
panel estimates also show that for lagging countries presumed bell shapes
turn into linear relationships. The stability of outcomes across models is
stronger when we compare heterogeneous rather than homogeneous models. If
it is compared with other studies, our analysis highlights a relative
lower variability across specifications.
Journal: Applied Economics
Pages: 3827-3842
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.734597
File-URL: http://hdl.handle.net/10.1080/00036846.2012.734597
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3827-3842
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Paradiso
Author-X-Name-First: Antonio
Author-X-Name-Last: Paradiso
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: B. Bhaskara Rao
Author-X-Name-First: B. Bhaskara
Author-X-Name-Last: Rao
Title: The growth effects of education in Australia
Abstract:
In this article, we estimate the growth effect of human capital with
country-specific time series data for Australia. In doing so, we extended
the Solow (1956) growth model by using educational attainment as a measure
of human capital developed by Barro and Lee (2010). The extended Solow
(1956) model performs well after allowing for the presence of structural
changes. Our results, based on alternative time series methods, show that
educational attainment has a small and significant permanent effect on the
growth rate of per worker output in Australia.
Journal: Applied Economics
Pages: 3843-3852
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.724161
File-URL: http://hdl.handle.net/10.1080/00036846.2012.724161
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3843-3852
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitra Dimitropoulou
Author-X-Name-First: Dimitra
Author-X-Name-Last: Dimitropoulou
Author-Name: Philip McCann
Author-X-Name-First: Philip
Author-X-Name-Last: McCann
Author-Name: Simon P. Burke
Author-X-Name-First: Simon P.
Author-X-Name-Last: Burke
Title: The determinants of the location of foreign direct investment in UK regions†
Abstract:
This article employs a database of over 2000 observations of Foreign
Direct Investment (FDI) projects in UK regions. We analyse this data by
means of various multinomial and conditional logit models in order to
identify the major determinants of the location choices of these inward
investments. Having controlled for the various characteristics of inward
investing firms, the projects and the regions, our results suggest that
existing regional specialization is the single most important determining
feature of where inward FDI locates. In addition, London is seen to
benefit primarily by the immigration of new investments, the majority of
which are related to service sector activities.
Journal: Applied Economics
Pages: 3853-3862
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2011.558482
File-URL: http://hdl.handle.net/10.1080/00036846.2011.558482
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3853-3862
Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo J. León
Author-X-Name-First: Carmelo J.
Author-X-Name-Last: León
Author-Name: Jorge E. Araña
Author-X-Name-First: Jorge E.
Author-X-Name-Last: Araña
Author-Name: Javier de León
Author-X-Name-First: Javier
Author-X-Name-Last: de León
Title: Valuing the social cost of corruption using subjective well being data and the technique of vignettes
Abstract:
Corruption can have an effect on people's happiness and satisfaction, and
therefore, can generate a social cost. However, the perceptions of
corruption and satisfaction can also vary across subjects, due to
socioeconomic and cultural characteristics. This article studies the
differences in the perceptions of corruption and satisfaction across
subjects, utilizing the technique of vignettes for the correction of the
bias that follows from the differences in the response scale across
individuals. The evidence comes from a sample of citizens in Spain, who
are asked about their perceptions of corruption and personal satisfaction.
The results show that there exists a response scale bias, both for
corruption and satisfaction. These results are utilized to approximate the
social cost of corruption.
Journal: Applied Economics
Pages: 3863-3870
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.741678
File-URL: http://hdl.handle.net/10.1080/00036846.2012.741678
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3863-3870
Template-Type: ReDIF-Article 1.0
Author-Name: Emilios Galariotis
Author-X-Name-First: Emilios
Author-X-Name-Last: Galariotis
Title: Mesdames et Messieurs, momentum performance is not so abnormal after all!
Abstract:
This article provides evidence regarding the performance of momentum
investment strategies that is consistent with the Neoclassical Theory.
More specifically, while momentum investment returns appear orthogonal to
systematic risk in the extant literature, this article illustrates that
they are due to correlated changes of hedge portfolio systematic risk
exposures with market conditions. Momentum portfolios are excellent market
timers in both expanding and contracting markets. Their returns however
are generally not abnormal when timing is considered in an augmented
unconditional Capital Asset Pricing Model (CAPM), while the standard
version erroneously considers them to be so, possibly explaining why
momentum studies have so far rejected the Neoclassical Theory.
Journal: Applied Economics
Pages: 3871-3879
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.730138
File-URL: http://hdl.handle.net/10.1080/00036846.2012.730138
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3871-3879
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Pascoe
Author-X-Name-First: Sean
Author-X-Name-Last: Pascoe
Author-Name: James Innes
Author-X-Name-First: James
Author-X-Name-Last: Innes
Author-Name: Ana Norman-López
Author-X-Name-First: Ana
Author-X-Name-Last: Norman-López
Author-Name: Chris Wilcox
Author-X-Name-First: Chris
Author-X-Name-Last: Wilcox
Author-Name: Natalie Dowling
Author-X-Name-First: Natalie
Author-X-Name-Last: Dowling
Title: Economic and conservation implications of a variable effort penalty system in effort-controlled fisheries
Abstract:
Bycatch of threatened, endangered or protected species by commercial
fishers is a universal problem. Technical solutions are often applied that
may impose inefficiencies across the fleet, even in periods or areas when
the risk of bycatch is low. These may include gear specifically designed
to avoid the bycatch which may also reduce the targeted catch, or
designation of marine protected areas that exclude fishing from whole
areas. In this article, we examine the effectiveness of a variable penalty
system that can provide incentives for fishers to redirect their effort
away from problem areas. The system is examined using a case study of
fishery, which is currently subjected to gear and closure controls to
limit bycatch of turtles and seabirds. An alternative incentive-based
management policy using a series of differential hook penalties has been
proposed as a flexible tool to discourage vessels operating in certain
areas. The effects of various hook penalties and closures in key areas on
fishing effort in those areas and elsewhere as well as vessel economic
performance are assessed using a location choice model. The results
suggest that incentive-based approaches may result in lower costs to
industry than closures provided some level of residual bycatch is
acceptable.
Journal: Applied Economics
Pages: 3880-3890
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.736941
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736941
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3880-3890
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel J. Power
Author-X-Name-First: Gabriel J.
Author-X-Name-Last: Power
Author-Name: Dmitry V. Vedenov
Author-X-Name-First: Dmitry V.
Author-X-Name-Last: Vedenov
Author-Name: David P. Anderson
Author-X-Name-First: David P.
Author-X-Name-Last: Anderson
Author-Name: Steven Klose
Author-X-Name-First: Steven
Author-X-Name-Last: Klose
Title: Market volatility and the dynamic hedging of multi-commodity price risk
Abstract:
Commodity cash and futures prices experienced a severe boom-and-bust
cycle between 2006 and 2009. Increases in commodity price volatility have
raised concerns about the usefulness of commodity futures and options as
risk management tools. Dynamic hedging strategies have the potential to
improve risk management when conditional (co)variances depart
significantly from their unconditional, long-run counterparts and may be
useful to decision-makers despite their greater complexity and higher
transaction costs. We propose a Nonparametric Copula-based Generalized
Autoregressive Conditional Heteroscedastic (NPC-GARCH) approach to
estimate time-varying hedge ratios, and evaluate the benefits of dynamic
hedging during four sub-periods between 2000 and 2011 using a stylized
Texas cattle feedlot management problem. The NPC-GARCH approach allows for
a flexible, nonlinear and asymmetric dependence structure between cash and
futures prices for different commodities. We find that NPC-GARCH dynamic
hedging performs better than either static, GARCH-Dynamic Conditional
Correlation (DCC) or GARCH-Baba, Engle, Kraft and Kroner (BEKK) hedging in
terms of lower tail risk (expected shortfall), but that there is no
significant difference between hedging approaches in terms of portfolio
variance reduction.
Journal: Applied Economics
Pages: 3891-3903
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.736942
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736942
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3891-3903
Template-Type: ReDIF-Article 1.0
Author-Name: Jie Li
Author-X-Name-First: Jie
Author-X-Name-Last: Li
Title: The effectiveness of fiscal and monetary policy responses to twin crises
Abstract:
We study how effective fiscal and monetary policy responses are during a
twin crisis. Using the dataset provided by Laeven and Valencia (2008), we
identify 57 episodes of twin crises. Following the methods proposed in
Baldacci et al. (2009) and Hutchison
et al. (2010), we construct the variables measuring
the duration and output cost of a twin crisis. We find that fiscal policy
does not seem to be associated with the shortening of a twin crisis.
Regarding monetary policy, we find that monetary tightening is associated
with the lengthening of a twin crisis duration, consistent with the result
in Hutchison et al. (2010) dealing with a sudden
stop crisis. In addition, our results show that while a mild monetary
expansion is effective in reducing a twin crisis duration,
over-expansionary monetary policy loses its effectiveness.
Journal: Applied Economics
Pages: 3904-3913
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.736943
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736943
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3904-3913
Template-Type: ReDIF-Article 1.0
Author-Name: Alpaslan Akay
Author-X-Name-First: Alpaslan
Author-X-Name-Last: Akay
Author-Name: Gökhan Karabulut
Author-X-Name-First: Gökhan
Author-X-Name-Last: Karabulut
Author-Name: Peter Martinsson
Author-X-Name-First: Peter
Author-X-Name-Last: Martinsson
Title: The effect of religiosity and religious festivals on positional concerns -- an experimental investigation of Ramadan
Abstract:
This article examines the effect of religion on positional concerns using
survey experiments. We focus on two of the dimensions of religion --
degree of religiosity and religious festivals. By conducting the
experiments during both the most important day of Ramadan (the Night of
Power) and a day outside Ramadan, we find that Ramadan overall has a small
and negative impact on positional concerns. Detailed analyses based on the
sorting of individuals’ degree of religiosity reveal that the
decrease in the degree of positional concerns during Ramadan is mainly
explained by a decrease in positionality among individuals with a low
degree of religiosity.
Journal: Applied Economics
Pages: 3914-3921
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.736944
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736944
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3914-3921
Template-Type: ReDIF-Article 1.0
Author-Name: T. M. Fullerton
Author-X-Name-First: T. M.
Author-X-Name-Last: Fullerton
Author-Name: A. G. Walke
Author-X-Name-First: A. G.
Author-X-Name-Last: Walke
Title: Public transportation demand in a border metropolitan economy
Abstract:
Empirical research for public transport demand has uncovered numerous
interesting commonalities across metropolitan economies. This study
examines the demand for municipal bus services over time in El Paso,
Texas, USA. El Paso is one of the largest metropolitan economies in the
USA located directly adjacent to an international boundary with another
country. This study not only models the demand for municipal bus services
as a function of traditional variables such as price, income and weather,
but also includes regressors designed to measure the potential impacts of
cross-border economic conditions on El Paso ridership. Results from a
Linear Transfer Function (LTF) modelling approach indicate that rider
volumes are affected by domestic as well as international economic
conditions in this border metropolitan area.
Journal: Applied Economics
Pages: 3922-3931
Issue: 27
Volume: 45
Year: 2013
Month: 9
X-DOI: 10.1080/00036846.2012.736945
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736945
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Handle: RePEc:taf:applec:v:45:y:2013:i:27:p:3922-3931
Template-Type: ReDIF-Article 1.0
Author-Name: K. Obeng
Author-X-Name-First: K.
Author-X-Name-Last: Obeng
Title: Bus transit technical efficiency using latent class stochastic indirect production frontier
Abstract:
Using an Indirect Production Frontier (IPF), this article examines
technical inefficiency within a latent class framework while
simultaneously accounting for allocative distortions from operating and
capital subsidies. It identifies two latent classes of US public transit
systems, one characterized by economies of scale with 16.61% technical
inefficiency and the other by diseconomies of scale with 14.16% technical
inefficiency. It decomposes technical inefficiency among some of its
sources and finds that the incentive tier of federal operating subsidies,
regulations regarding years of vehicle use, subsidy-induced allocative
distortion from labour overuse relative to capital negatively influence
technical inefficiency in all transit systems. For the Latent Class 1
transit systems, the sources of lower technical inefficiency are operating
speed, purchased transportation and years-of-vehicle-use regulation. For
the Latent Class 2 transit systems, these sources are subsidy-induced
capital-labour allocative distortion and the incentive tier component of
the federal formula grant.
Journal: Applied Economics
Pages: 3933-3942
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.736946
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736946
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3933-3942
Template-Type: ReDIF-Article 1.0
Author-Name: Deliana Kostova
Author-X-Name-First: Deliana
Author-X-Name-Last: Kostova
Title: A (nearly) global look at the dynamics of youth smoking initiation and cessation: the role of cigarette prices
Abstract:
This study investigates the role of cigarette prices on smoking
initiation and cessation among youth in a sample of eight primarily
non-Western low, middle, and high income countries, with a particular
focus on a subsample of 40 low- and middle-income countries (LMICs). Using
split-population duration models on longitudinally-transformed individual
data from the Global Youth Tobacco Survey (GYTS), the average impact of
cigarette prices in the presence of unobserved country heterogeneity and
shifting cultural norms within countries is identified by the variation of
cigarette prices within countries over time. Price increases are found to
effectively reduce initiation in early youth, and girls are considerably
more responsive than boys. The price elasticity of initiation in LMICs is
−0.82 for the combined gender analysis, −0.46 for boys only
and −1.5 for girls only. There is some indication that youths in
developing countries may be slightly less responsive to price changes than
in high-income countries. No evidence is found that cigarette prices
increase quitting rates in youth, which may be due to the difficulty of
defining true quitting among smokers in early life.
Journal: Applied Economics
Pages: 3943-3951
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.736947
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736947
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3943-3951
Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandar Kešeljević
Author-X-Name-First: Aleksandar
Author-X-Name-Last: Kešeljević
Author-Name: Rok Spruk
Author-X-Name-First: Rok
Author-X-Name-Last: Spruk
Title: Endogenous economic freedom and the wealth of nations: evidence from a panel of countries, 1996--2011
Abstract:
Indexes of economic freedom measure the degree to which the policies and
institutions of countries are supportive of economic freedom. The authors
find a considerable scope for improvement in Index of Economic Freedom,
created by Heritage Foundation, since not all components of index have
equal effect on economic well-being. Contrary to Heritage methodology the
authors tackle the aggregation bias and highlight that each index
component contributes differently to the level of economic freedom and
subsequently to the level of income per capita. The level of fiscal
freedom and monetary freedom exert the strongest influence on the overall
index of economic freedom. Authors present the new endogenous
cross-country ranking of 135 countries from Instrumental Variable-Two
Stage Least Squares (IV-2SLS) empirical specification which removes the
inconsistencies arising from the arbitrary assumption of the equivalent
effect of each component on the overall index and, hence, the level of
real income per capita.
Journal: Applied Economics
Pages: 3952-3962
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.736948
File-URL: http://hdl.handle.net/10.1080/00036846.2012.736948
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3952-3962
Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Robert P. McComb
Author-X-Name-First: Robert P.
Author-X-Name-Last: McComb
Author-Name: Anita R. Schiller
Author-X-Name-First: Anita R.
Author-X-Name-Last: Schiller
Title: Do production subsidies have a wage incidence in wind power?
Abstract:
Employment in electricity generation from renewable resources has
expanded rapidly in the US and in Texas during the last decade.
Availability of the Production Tax Credit (PTC) has been an important
driver of this growth. Using establishment-level employment and payroll
data for Texas at the North American Industrial Classification System
(NAICS)-6 level, we analyse the differences in average wages between firms
generating electricity from fossil fuels and those generating electricity
from wind power. We compare relative average wages before and after the
rapid expansion of wind power development that followed the ex
ante renewal of the PTC in 2006. Our main finding using both the
parametric and nonparametric estimation techniques proposed by Racine and
Li (2004), is that average payrolls for wind power generators increased
relative to fossil fuel-based electricity generators after 2006.
Journal: Applied Economics
Pages: 3963-3972
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.741679
File-URL: http://hdl.handle.net/10.1080/00036846.2012.741679
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3963-3972
Template-Type: ReDIF-Article 1.0
Author-Name: David Greasley
Author-X-Name-First: David
Author-X-Name-Last: Greasley
Author-Name: Jakob B. Madsen
Author-X-Name-First: Jakob B.
Author-X-Name-Last: Madsen
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Long-run growth empirics and new challenges for unified theory
Abstract:
Annual estimates of productivity are reported for periods over 500 years
for eight countries and for five other countries over shorter periods.
One- and two-break time series models are used to investigate
discontinuities in productivity growth. The results support two-break
models of long-run productivity and they favour approaches to unified
growth modelling with three epochs. However, the lessening of productivity
gaps and the decisive shifts to higher productivity occurred in the
twentieth century, chiefly in the years around the World War II. The
timing of the breaks and the complexity of the historical record
highlights a need for unified models to connect more closely with economic
history.
Journal: Applied Economics
Pages: 3973-3987
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.741780
File-URL: http://hdl.handle.net/10.1080/00036846.2012.741780
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3973-3987
Template-Type: ReDIF-Article 1.0
Author-Name: R. Becker
Author-X-Name-First: R.
Author-X-Name-Last: Becker
Author-Name: Y. Wang
Author-X-Name-First: Y.
Author-X-Name-Last: Wang
Title: Measuring the Chinese business cycle
Abstract:
This article documents the business cycle characteristics of the Chinese
economy by adopting both nonparametric and parametric methodologies. The
two approaches are applied to relevant macroeconomics indicators -- Gross
Domestic Product (GDP) and Industrial Production (IP) indices -- aiming to
investigate the growth cycle (deviation cycle). We provide a clear
chronology of the Chinese growth cycle. One significant characteristic of
the Chinese growth cycle is the relatively direct influence of government
policies. However, recently these policy effects have become less
significant when compared to global economic influences. Our study
provides an enhanced understanding of the properties of business cycle
dating algorithms and as such contributes to future Chinese business cycle
research.
Journal: Applied Economics
Pages: 3988-4003
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.744135
File-URL: http://hdl.handle.net/10.1080/00036846.2012.744135
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:3988-4003
Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Giamboni
Author-X-Name-First: Luigi
Author-X-Name-Last: Giamboni
Author-Name: Emanuele Millemaci
Author-X-Name-First: Emanuele
Author-X-Name-Last: Millemaci
Author-Name: Robert J. Waldmann
Author-X-Name-First: Robert J.
Author-X-Name-Last: Waldmann
Title: Evaluating how predictable errors in expected income affect consumption
Abstract:
This article studies whether anomalies in consumption can be explained by
a behavioural model in which agents make predictable errors in forecasting
income. We use a micro-data set containing subjective expectations about
future income. This article shows that the null hypothesis of rational
expectations is rejected in favour of the behavioural model, since
consumption responds to predictable forecast errors. On average, agents
who we predict are too pessimistic increase consumption after the
predictable positive income shock. On average, agents who are too
optimistic reduce the consumption.
Journal: Applied Economics
Pages: 4004-4021
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.745987
File-URL: http://hdl.handle.net/10.1080/00036846.2012.745987
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4004-4021
Template-Type: ReDIF-Article 1.0
Author-Name: Benedict Clements
Author-X-Name-First: Benedict
Author-X-Name-Last: Clements
Author-Name: Sanjeev Gupta
Author-X-Name-First: Sanjeev
Author-X-Name-Last: Gupta
Author-Name: Masahiro Nozaki
Author-X-Name-First: Masahiro
Author-X-Name-Last: Nozaki
Title: What happens to social spending in IMF-supported programmes?
Abstract:
This article finds that education and health spending has risen during
International Monetary Fund (IMF)-supported programmes at a faster pace
than in developing countries as a whole. The analysis is based on the most
comprehensive dataset assembled thus far for this purpose, with data
covering 1985 to 2009 for 140 countries. Controlling for other
determinants of education and health spending, including macroeconomic
conditions, the results confirm that IMF-supported programmes have a
positive and significant effect on social spending in low-income
countries. Over a 5-year period with IMF-supported programmes, spending
for education increases by about ¾ percentage point of Gross Domestic
Product (GDP); and for health, by about 1 percentage point of GDP.
IMF-supported programmes are also associated with increases in the share
of government spending allocated to education and health.
Journal: Applied Economics
Pages: 4022-4033
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.744136
File-URL: http://hdl.handle.net/10.1080/00036846.2012.744136
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4022-4033
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Hayo
Author-X-Name-First: Bernd
Author-X-Name-Last: Hayo
Author-Name: Matthias Neuenkirch
Author-X-Name-First: Matthias
Author-X-Name-Last: Neuenkirch
Title: Does the currency board matter? US news and Argentine financial market reaction
Abstract:
Using a Generalized Autoregressive Conditional Heteroscedasticity (GARCH)
model, we study the effects of the US monetary policy and macroeconomic
announcements on Argentine money, stock and foreign exchange markets over
the period January 1998 to July 2007. We show, first, that both types of
news have a significant impact on all markets. Second, there are
noticeable differences in reaction for different subsamples: Argentine
money markets were more dependent on US news under the currency board than
after it was abandoned as the floating exchange rate partly absorbs
spillover effects from the US. Finally, we find that the
US-dollar-denominated assets react less to US news than peso-denominated
assets, which suggests that the currency board was not completely credible
during its final years.
Journal: Applied Economics
Pages: 4034-4040
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.748177
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748177
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4034-4040
Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Cheng Hung
Author-X-Name-First: Jui-Cheng
Author-X-Name-Last: Hung
Author-Name: Tien-Wei Lou
Author-X-Name-First: Tien-Wei
Author-X-Name-Last: Lou
Author-Name: Yi-Hsien Wang
Author-X-Name-First: Yi-Hsien
Author-X-Name-Last: Wang
Author-Name: Jun-De Lee
Author-X-Name-First: Jun-De
Author-X-Name-Last: Lee
Title: Evaluating and improving GARCH-based volatility forecasts with range-based estimators
Abstract:
This article investigates the feasibility of using range-based estimators
to evaluate and improve Generalized Autoregressive Conditional
Heteroscedasticity (GARCH)-based volatility forecasts due to their
computational simplicity and readily availability. The empirical results
show that daily range-based estimators are sound alternatives for true
volatility proxies when using Superior Predictive Ability (SPA) test of
Hansen (2005) to assess GARCH-based volatility forecasts. In addition, the
inclusion of the range-based estimator of Garman and Klass (1980) can
significantly improve the forecasting performance of
GARCH-t model.
Journal: Applied Economics
Pages: 4041-4049
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.748179
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748179
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4041-4049
Template-Type: ReDIF-Article 1.0
Author-Name: J. Muysken
Author-X-Name-First: J.
Author-X-Name-Last: Muysken
Author-Name: T. H. W. Ziesemer
Author-X-Name-First: T. H. W.
Author-X-Name-Last: Ziesemer
Title: A permanent effect of temporary immigration on economic growth
Abstract:
Immigration can help to lessen the burden of ageing for the welfare
states of most Western economies. To show this, we develop a decomposition
framework for Gross Domestic Product (GDP) per capita which deals with the
impact of both ageing and immigration on economic growth. Using a Vector
Error Correction Model (VECM) for the Netherlands during 1973 to 2009, we
demonstrate the empirical relevance of some crucial interactions between
elements of that decomposition. The conclusion is that even temporary
immigration may help to alleviate the ageing problem through a positive
long-term contribution to employment, wages and GDP per capita, as long as
the immigrants are able to participate in the labour force in tandem with
the native population. Unfavourable short-term effects should be avoided
through a gradual phasing in of immigration policies.
Journal: Applied Economics
Pages: 4050-4059
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.748178
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748178
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4050-4059
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Serrano-Cinca
Author-X-Name-First: Carlos
Author-X-Name-Last: Serrano-Cinca
Author-Name: Begoña Guti鲲ez-Nieto
Author-X-Name-First: Begoña
Author-X-Name-Last: Guti鲲ez-Nieto
Title: A decision support system for financial and social investment
Abstract:
This article proposes a decision-making model that assesses the different
aspects associated to Social Venture Capital (SVC) investment decisions.
SVC companies buy shares of investee companies, valued according to
financial and social aspects. The proposed model includes three main
factors: the previous experience with the company (the past); its
financial information and intangible assets (the present); and the
proposed project, considering financial and social criteria (the future).
The model has 26 criteria and 160 indicators, prioritized by means of
Analytic Hierarchy Process (AHP). AHP simplifies a complex problem using a
hierarchical analysis methodology, which enables subjective judgements
among different criteria. The model has been tested in a given SVC
company. Its development is explained in this article.
Journal: Applied Economics
Pages: 4060-4070
Issue: 28
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.748180
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748180
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Handle: RePEc:taf:applec:v:45:y:2013:i:28:p:4060-4070
Template-Type: ReDIF-Article 1.0
Author-Name: R. Alan Bowman
Author-X-Name-First: R. Alan
Author-X-Name-Last: Bowman
Author-Name: Thomas Ashman
Author-X-Name-First: Thomas
Author-X-Name-Last: Ashman
Author-Name: James Lambrinos
Author-X-Name-First: James
Author-X-Name-Last: Lambrinos
Title: Prospective measures of competitive balance: application to money lines in major league baseball
Abstract:
This study examines competitive balance in Major League
Baseball (MLB) by looking at the money lines for the games during the
regular season. The assertion is that the closer the money lines are to
indicating that each team has an equal chance of winning each game, the
more competitive balance there is in the league. This study extends the
model developed by Bowman et al. (2012), which used
point spreads to assess competitive balance in the National Football
League (NFL) and the National Basketball Association (NBA). In this study,
money lines for the 1999--2011 seasons were used to develop several
measures of competitive balance. The results indicate that competitive
balance increased rather substantially during this period. A by-product of
this research is to identify the most highly rated team and pitcher. In
2002, New York Yankees were the highest rated team and from the year 2000
Pedro Martinez was the highest rated pitcher.
Journal: Applied Economics
Pages: 4071-4081
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.750421
File-URL: http://hdl.handle.net/10.1080/00036846.2012.750421
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4071-4081
Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Cozad
Author-X-Name-First: Melanie
Author-X-Name-Last: Cozad
Author-Name: Bruno Wichmann
Author-X-Name-First: Bruno
Author-X-Name-Last: Wichmann
Title: Efficiency of health care delivery systems: effects of health insurance coverage
Abstract:
Health insurance expansions may increase the demand for
care-creating incentives for health systems to increase input consumption.
The possibility remains that added capacity and personnel will have little
effect on health outcomes, decreasing the technical efficiency of health
care delivery systems. We estimate that a 1 percentage point increase in
health insurance coverage decreases the technical efficiency of health
care delivery by 1.3 percentage points, translating into approximately 50
billion dollars in additional health expenditures. This finding uncovers a
previously unexplored consequence of changes in health insurance on the
supply side of health care markets suggesting one avenue through which
health care costs growth may occur.
Journal: Applied Economics
Pages: 4082-4094
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.750420
File-URL: http://hdl.handle.net/10.1080/00036846.2012.750420
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4082-4094
Template-Type: ReDIF-Article 1.0
Author-Name: Giuliana Passamani
Author-X-Name-First: Giuliana
Author-X-Name-Last: Passamani
Author-Name: Roberto Tamborini
Author-X-Name-First: Roberto
Author-X-Name-Last: Tamborini
Title: Monetary policy through the ‘credit-cost channel’: Italy and Germany pre- and post-EMU
Abstract:
We present an empirical analysis of the ‘Credit-Cost
Channel’ (CCC) of monetary policy transmission. This channel
combines bank credit supply and interest rates on loans as a cost to
firms. The thrust of the CCC is that it makes both aggregate demand and
aggregate supply dependent on monetary policy. As a consequence (1) credit
market conditions (e.g. risk spreads) are important sources and indicators
of macroeconomic shocks, (2) the real effects of monetary policy are
larger and persistent. We have applied the Cointegrated Vector
Autoregression (CVAR) econometric methodology to Italy and Germany in the
‘hard’ EMS period and in the European Monetary Union (EMU)
period. The short-run and long-run effects of the CCC are detectable for
both countries in both periods. Simulation of the estimated model also
confirms that inflation-targeting by way of inter-bank rate control
stabilizes inflation through structural shifts of the stochastic
equilibrium paths of both inflation and the output.
Journal: Applied Economics
Pages: 4095-4113
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.748176
File-URL: http://hdl.handle.net/10.1080/00036846.2012.748176
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4095-4113
Template-Type: ReDIF-Article 1.0
Author-Name: Rizki E. Wimanda
Author-X-Name-First: Rizki E.
Author-X-Name-Last: Wimanda
Author-Name: Paul M. Turner
Author-X-Name-First: Paul M.
Author-X-Name-Last: Turner
Author-Name: Maximilian J. B. Hall
Author-X-Name-First: Maximilian J. B.
Author-X-Name-Last: Hall
Title: The shape of the Phillips curve: the case of Indonesia
Abstract:
It is recognized that the effectiveness of monetary policy in
the control of inflation depends critically on the relationship between
inflation and the output gap. During booms, inflation is highly sensitive
to monetary influences, but during recessions this influence is
considerably muted. However, econometric investigation of this phenomenon
has mostly focussed on the developed economies. In this article, the shape
of the Phillips curve is investigated for Indonesia. Evidence is found of
significant nonlinearities in the inflation--output relationship for
Indonesia and it is argued that this relationship is best modelled by the
capacity-constraint (L-shape) model.
Journal: Applied Economics
Pages: 4114-4121
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.744137
File-URL: http://hdl.handle.net/10.1080/00036846.2012.744137
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4114-4121
Template-Type: ReDIF-Article 1.0
Author-Name: Rina Bhattacharya
Author-X-Name-First: Rina
Author-X-Name-Last: Bhattacharya
Author-Name: Sanchita Mukherjee
Author-X-Name-First: Sanchita
Author-X-Name-Last: Mukherjee
Title: Non-Keynesian effects of fiscal policy in OECD economies: an empirical study
Abstract:
This article explores the hypothesis that the propensity to
consume out of income varies in a nonlinear fashion with fiscal variables,
and in particular with government debt per capita. Using panel data from
18 Organization for Economic Cooperation and Development (OECD) countries,
we examine whether there is any empirical evidence to support the
hypothesis that households move from non-Ricardian to Ricardian behaviour
as government debt reaches high levels and as uncertainty about future
taxes increases. Our results provide support for this hypothesis, and also
suggest that private and government consumption are complements in the
household utility function.
Journal: Applied Economics
Pages: 4122-4136
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.752571
File-URL: http://hdl.handle.net/10.1080/00036846.2012.752571
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4122-4136
Template-Type: ReDIF-Article 1.0
Author-Name: Yehenew Endegnanew
Author-X-Name-First: Yehenew
Author-X-Name-Last: Endegnanew
Author-Name: Charles Amo-Yartey
Author-X-Name-First: Charles
Author-X-Name-Last: Amo-Yartey
Author-Name: Therese Turner-Jones
Author-X-Name-First: Therese
Author-X-Name-Last: Turner-Jones
Title: Fiscal policy and the current account: are microstates different?
Abstract:
This article examines the empirical link between fiscal
policy and the current account focusing on microstates defined as
countries with a population of less than 2 million between 1970 and 2009.
This article employs panel regression and Panel Vector Autoregression
(PVAR) on 155 countries of which 42 are microstates. Panel regression
results show that a percentage point improvement in the fiscal balance
improves the current account balance by 0.4 percentage points of Gross
Domestic Product (GDP). The real effective exchange rate has no
significant impact on the current account in microstates but the
coefficient is significant in the global sample. PVAR results show that an
increase in government consumption results in real exchange appreciation,
but the effect on the current account after an initial deterioration dies
out quicker in microstates than in the global sample. The result implies
that fiscal policy has little effect on the current account in microstates
beyond its direct impact on imports. Overall, the results suggest that the
weak relative price effects make the effect of fiscal adjustment on the
current account much more difficult in microstates.
Journal: Applied Economics
Pages: 4137-4151
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2012.754542
File-URL: http://hdl.handle.net/10.1080/00036846.2012.754542
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4137-4151
Template-Type: ReDIF-Article 1.0
Author-Name: Kristofer Månsson
Author-X-Name-First: Kristofer
Author-X-Name-Last: Månsson
Author-Name: Ghazi Shukur
Author-X-Name-First: Ghazi
Author-X-Name-Last: Shukur
Author-Name: Pär Sjölander
Author-X-Name-First: Pär
Author-X-Name-Last: Sjölander
Title: Testing for panel unit roots in the presence of spatial dependency
Abstract:
In this article, the size and power properties of the
Common-factor Im, Pesaran and Shin (CIPS), Wald (W), Likelihood Ratio (LR)
and Lagrange Multiplier (LM) tests are investigated when the error term
follows a spatial error model. In this study, the results from the Monte
Carlo simulations, first, show that the CIPS test over-estimates the
nominal size. Second, the simulation results show that the empirical size
of the W test approaches the nominal size quickly, while the LR and LM
tests underestimate the null hypothesis in both small and moderate sample
sizes. Finally, the results also show that even though the LM and LR tests
under-reject the true-null hypothesis they have higher power than the W
test.
Journal: Applied Economics
Pages: 4152-4159
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.767980
File-URL: http://hdl.handle.net/10.1080/00036846.2013.767980
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4152-4159
Template-Type: ReDIF-Article 1.0
Author-Name: K. K. G. Wong
Author-X-Name-First: K. K. G.
Author-X-Name-Last: Wong
Title: Trade distance functions and the derivation of inverse demand for imports
Abstract:
This article introduces a new representation of trade
preferences termed as the trade distance function, which measures the
maximum amount by which import quantities must be deflated or inflated to
reach the indifference surface. The properties of this function are
discussed and employed to derive systems of inverse demand for imported
goods. We illustrate its usefulness by proposing two new parametric forms
of trade distance functions. While the trade distance function directly
yields Hicksian inverse demand functions of imports, they usually lack
closed-form representations in terms of observable variables. This
problem, however, need not hinder estimation and could be solved by using
the numerical inversion estimation method. Results generally indicate that
the suggested modelling and estimation methods are operationally, implying
that the trade distance function approach is a promising tool of the
empirical analysis of import demands subjected to tight theoretical
conditions.
Journal: Applied Economics
Pages: 4160-4168
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.767979
File-URL: http://hdl.handle.net/10.1080/00036846.2013.767979
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4160-4168
Template-Type: ReDIF-Article 1.0
Author-Name: William A. Barnett
Author-X-Name-First: William A.
Author-X-Name-Last: Barnett
Author-Name: Isaac Kalonda Kanyama
Author-X-Name-First: Isaac Kalonda
Author-X-Name-Last: Kanyama
Title: Time-varying parameters in the almost ideal demand system and the Rotterdam model: will the best specification please stand up?
Abstract:
This article assesses the ability of the Rotterdam Model (RM)
and of three versions of the Almost Ideal Demand System (AIDS) to recover
the time-varying elasticities of a true demand system and to satisfy
theoretical regularity. Using Monte Carlo simulations, we find that the RM
performs better than the linear-approximate AIDS at recovering the signs
of all the time-varying elasticities. More importantly, the RM has the
ability to track the paths of time-varying income elasticities, even when
the true values are very high. The linear-approximate AIDS, not only
performs poorly at recovering the time-varying elasticities but also badly
approximates the nonlinear AIDS.
Journal: Applied Economics
Pages: 4169-4183
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.768014
File-URL: http://hdl.handle.net/10.1080/00036846.2013.768014
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4169-4183
Template-Type: ReDIF-Article 1.0
Author-Name: N. Scelles
Author-X-Name-First: N.
Author-X-Name-Last: Scelles
Author-Name: C. Durand
Author-X-Name-First: C.
Author-X-Name-Last: Durand
Author-Name: L. Bonnal
Author-X-Name-First: L.
Author-X-Name-Last: Bonnal
Author-Name: D. Goyeau
Author-X-Name-First: D.
Author-X-Name-Last: Goyeau
Author-Name: W. Andreff
Author-X-Name-First: W.
Author-X-Name-Last: Andreff
Title: Competitive balance versus competitive intensity before a match: is one of these two concepts more relevant in explaining attendance? The case of the French football Ligue 1 over the period 2008--2011
Abstract:
The aim of this article is to investigate the determinants of
attendance at French football Ligue 1 matches over the period 2008--2011
with an emphasis on examining the effects of both competitive balance and
intensity before a match. Competitive balance is measured by the point
difference between the two teams concerned by a match in the championship.
Competitive intensity is measured by the point difference for the home
team in relation to ranks with sporting stakes. Results show that
competitive balance has an insignificant impact whereas competitive
intensity has a significantly positive impact. Implications are drawn.
Journal: Applied Economics
Pages: 4184-4192
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.770124
File-URL: http://hdl.handle.net/10.1080/00036846.2013.770124
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4184-4192
Template-Type: ReDIF-Article 1.0
Author-Name: Boon L. Lee
Author-X-Name-First: Boon L.
Author-X-Name-Last: Lee
Author-Name: Andrew C. Worthington
Author-X-Name-First: Andrew C.
Author-X-Name-Last: Worthington
Title: A note on the ‘Linsanity’ of measuring the relative efficiency of National Basketball Association guards
Abstract:
This note examines the productive efficiency of 62 starting
guards during the 2011/12 National Basketball Association (NBA) season.
This period coincides with the phenomenal and largely unanticipated
performance of New York Knicks’ starting point guard Jeremy Lin and
the attendant public and media hype known as Linsanity.
We employ a data envelopment analysis (DEA) approach that includes
allowance for an undesirable output, here turnovers per game, with the
desirable outputs of points, rebounds, assists, steals and blocks per game
and an input of minutes per game. The results indicate that depending upon
the specification, between 29% and 42% of NBA guards are fully efficient,
including Jeremy Lin, with a mean inefficiency of 3.7% and 19.2%. However,
while Jeremy Lin is technically efficient, he seldom serves as a benchmark
for inefficient players, at least when compared with established players
such as Chris Paul and Dwayne Wade. This suggests the uniqueness of Jeremy
Lin's productive solution and may explain why his unique style of play,
encompassing individual brilliance, unselfish play and team leadership, is
of such broad public appeal.
Journal: Applied Economics
Pages: 4193-4202
Issue: 29
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.770125
File-URL: http://hdl.handle.net/10.1080/00036846.2013.770125
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Handle: RePEc:taf:applec:v:45:y:2013:i:29:p:4193-4202
Template-Type: ReDIF-Article 1.0
Author-Name: Josep Lluarrion-i-Silvestre
Author-X-Name-First: Josep Llu
Author-X-Name-Last: Carrion-i-Silvestre
Author-Name: Emma M. Iglesias
Author-X-Name-First: Emma M.
Author-X-Name-Last: Iglesias
Title: Editorial
Journal: Applied Economics
Pages: 4203-4203
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.778947
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778947
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4203-4203
Template-Type: ReDIF-Article 1.0
Author-Name: Jos頍ar𨁁rias
Author-X-Name-First: Jos頍ar𨀍
Author-X-Name-Last: Arias
Title: Preface
Journal: Applied Economics
Pages: 4204-4204
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.778949
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778949
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4204-4204
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno S. Frey
Author-X-Name-First: Bruno S.
Author-X-Name-Last: Frey
Author-Name: Jana Gallus
Author-X-Name-First: Jana
Author-X-Name-Last: Gallus
Title: Political economy of happiness
Abstract:
Happiness research has been a great
success by yielding new and important insights. These results are often
used in a technocratic manner: Governments should maximize, or at least
raise, the subjective well-being of the population measured by the
national happiness index. Yet the government has strong incentives and a
wide range of possibilities to manipulate this index to its advantage.
Happiness policy must be part of the normal democratic process where
divergent views are considered and aggregated. In particular, competition
between parties is a prerequisite for the insights from happiness research
put to the benefit of the citizens.
Journal: Applied Economics
Pages: 4205-4211
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.778950
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778950
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4205-4211
Template-Type: ReDIF-Article 1.0
Author-Name: St鰨ane Bonhomme
Author-X-Name-First: St鰨ane
Author-X-Name-Last: Bonhomme
Author-Name: Laura Hospido
Author-X-Name-First: Laura
Author-X-Name-Last: Hospido
Title: Earnings inequality in Spain: new evidence using tax data
Abstract:
We use tax files from 2004 to 2010 to
document the recent evolution of earnings inequality in Spain. We find
that inequality went in parallel with the evolution of the unemployment
rate during the period. This evolution is consistent with the evidence
from Social Security records recently documented in Bonhomme and Hospido
(2012). Quantitatively, the 90/10 percentile ratio of daily earnings
experienced a 10% increase between 2007 and 2010, which is partly but not
fully explained by changes in labour force composition. We also use the
tax data to study the evolution of the gender earnings gap, and find that
it has decreased throughout the distribution during the period. Lastly, we
tentatively exploit the panel dimension of the data to explore the
permanent and temporary dimensions of Spanish inequality.
Journal: Applied Economics
Pages: 4212-4225
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.781261
File-URL: http://hdl.handle.net/10.1080/00036846.2013.781261
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4212-4225
Template-Type: ReDIF-Article 1.0
Author-Name: Ma del Mar Salinas-Jim鮥z
Author-X-Name-First: Ma del Mar
Author-X-Name-Last: Salinas-Jim鮥z
Author-Name: Marta Rahona-L
Author-X-Name-First: Marta
Author-X-Name-Last: Rahona-L
Author-Name: In鳠P. Murillo-Huertas
Author-X-Name-First: In鳠P.
Author-X-Name-Last: Murillo-Huertas
Title: Gender wage differentials and educational mismatch: an application to the Spanish case
Abstract:
This article aims to analyse gender wage
differentials in Spain by taking into account the levels of educational
attainment and by studying whether the educational mismatch affects the
gender wage gap. Focusing on returns to education, evidence is found on
the existence of educational mismatch and on its contribution to determine
wages, with women suffering greater wage penalties that are associated
with educational mismatch. Furthermore, although the gender wage gap is
lower for individuals with low educational levels, we find that the part
of this gap due to differences in returns is greater in this group. On the
contrary, the gender gap is greater among highly-educated workers, but in
this case most of the wage differentials are due to differences in
productive characteristics. In any case, our results suggest that gender
wage discrimination tends to be greater for those workers who show
educational mismatch.
Journal: Applied Economics
Pages: 4226-4235
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.781260
File-URL: http://hdl.handle.net/10.1080/00036846.2013.781260
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4226-4235
Template-Type: ReDIF-Article 1.0
Author-Name: K. Sommerfeld
Author-X-Name-First: K.
Author-X-Name-Last: Sommerfeld
Title: Higher and higher? Performance pay and wage inequality in Germany
Abstract:
Performance pay is of growing importance
to the wage structure as it applies to a rising share of employees. At the
same time, wage dispersion is growing continuously. This leads to the
question of how is the growing use of performance pay schemes related to
the increase in wage inequality? German Socio-Economic Panel (SOEP) data
for the years 1984--2009 confirm the large increase in the
application of performance pay schemes. This in turn led to an upward
shift of the wage distribution by about one log point. However, it did not
contribute to the growth in wage inequality. Even though wage inequality
grew within the group of employees who receive performance pay, it grew
even more so within the group who do not. Still, the wage difference
between both wage schemes remained flat over the distribution. The
empirical analysis employs sequential decompositions in a quantile
regression framework.
Journal: Applied Economics
Pages: 4236-4247
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.783682
File-URL: http://hdl.handle.net/10.1080/00036846.2013.783682
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4236-4247
Template-Type: ReDIF-Article 1.0
Author-Name: A. Fa𨐠
Author-X-Name-First: A.
Author-X-Name-Last: Fa𨐠
Author-Name: J. L-Rodrz
Author-X-Name-First: J.
Author-X-Name-Last: L-Rodrz
Author-Name: L. Varela-Candamio
Author-X-Name-First: L.
Author-X-Name-Last: Varela-Candamio
Title: Nontaxable income and necessary consumption: the Rousseau's paradox of fiscal egalitarianism
Abstract:
This article compares a tax method
featuring flat rates and fixed allowances equal for all taxpayers (Surplus
Income Tax Method (SITM) procedure) with a tax method featuring also flat
rates and increasing personal allowances (IPAs) to meet the amounts of
necessary consumption required by the different living standards
(Discretionary Income Tax Method (DITM) procedure). Our results show that
the DITM procedure generates an after-tax income distribution less unequal
and superior in terms of social welfare. Moreover, the assumption (for
comparison purposes) of identical total tax revenues leads to the
corollary that the flat tax rate under the DITM is necessarily larger than
the one under the SITM; being thus, the former taxmethod is more
progressive than the latter. These results imply an obvious paradox
considering the commonly accepted principle that basic necessities are the
same for everyone (Rousseau, 1755). Based on the results obtained in this
article, we have labelled this paradox as the Rousseau's paradox of fiscal
egalitarianism.
Journal: Applied Economics
Pages: 4248-4259
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.781262
File-URL: http://hdl.handle.net/10.1080/00036846.2013.781262
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4248-4259
Template-Type: ReDIF-Article 1.0
Author-Name: Emma M. Iglesias
Author-X-Name-First: Emma M.
Author-X-Name-Last: Iglesias
Author-Name: J. Atilano Pena L
Author-X-Name-First: J. Atilano Pena
Author-X-Name-Last: L
Author-Name: Jos頍anuel Sᮣhez S᮴os
Author-X-Name-First: Jos頍anuel Sᮣhez
Author-X-Name-Last: S᮴os
Title: Evolution over time of the determinants of preferences for redistribution and the support for the welfare state
Abstract:
The objective of this article is to
analyse the determinants of preferences for redistribution in Spain both
at an aggregate and regional level. Using country level data, we put to
the test the Alesina and Angeletos' (2005) hypothesis, the strong and
positive relationship between the 'belief that luck determines income' and
the support for redistributive policies. As an innovative contribution, we
contrast this hypothesis using a set of panel data models with
regional and time fixed effects. Our
main finding is the existence of a structural change in preferences
formation for redistribution in Spain between 1995 and 2007. Furthermore,
the empirical results provide some evidence suggesting that (1) the belief
that society is unfair have a moderate effect on the individuals'
preferences for redistribution and (2) regional beliefs in Spanish regions
are not equally important when determining demand for redistribution.
Journal: Applied Economics
Pages: 4260-4274
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.778948
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778948
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4260-4274
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Good
Author-X-Name-First: Michael
Author-X-Name-Last: Good
Title: Do immigrant outflows lead to native inflows? An empirical analysis of the migratory responses to US state immigration legislation
Abstract:
I estimate the impact on internal
migration for 52 different demographic groups of the recent influx of
state omnibus immigration laws targeting undocumented immigrants in the
United States. I find evidence that while the demographic groups
pinpointed as having higher percentages of undocumented immigrants
certainly experience population and employment 'outflows' from states
implementing these immigration laws, there is a lack of associated
'inflows' for those demographic groups identified by economic theory as
being probable substitutes for undocumented immigrants. Several segments
designated as probable substitutes actually experience an adverse effect
on population and employment. This finding provides rigorous empirical
backing to existing anecdotal evidence of the same cross-state migratory
phenomenon, resulting in clear policy implications in relation to the
ongoing debate over immigration.
Journal: Applied Economics
Pages: 4275-4297
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.786802
File-URL: http://hdl.handle.net/10.1080/00036846.2013.786802
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4275-4297
Template-Type: ReDIF-Article 1.0
Author-Name: O. Alonso-Villar
Author-X-Name-First: O.
Author-X-Name-Last: Alonso-Villar
Author-Name: C. Grad
Author-X-Name-First: C.
Author-X-Name-Last: Grad
Author-Name: C. del R
Author-X-Name-First: C.
Author-X-Name-Last: del R
Title: Occupational segregation of Hispanics in US metropolitan areas
Abstract:
This article quantifies the occupational
segregation of Hispanics in the largest Hispanic enclaves of the US. Using
a procedure based on propensity score, it explores the role played by the
characteristics of Hispanics, such as country of origin and English
fluency, in explaining the variation of segregation across metropolitan
areas. Regarding the characteristics of the metropolitan areas, a
regression analysis shows that the segregation of Hispanic workers tends
to be higher in relatively smaller and highly educated labour markets,
with a lower proportion of Hispanics, a higher growth of recent
foreign-born Hispanics and in areas where they face cooler feelings from
the rest of the population.
Journal: Applied Economics
Pages: 4298-4307
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.778951
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778951
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4298-4307
Template-Type: ReDIF-Article 1.0
Author-Name: C. Duvivier
Author-X-Name-First: C.
Author-X-Name-Last: Duvivier
Author-Name: S. Li
Author-X-Name-First: S.
Author-X-Name-Last: Li
Author-Name: M.-F. Renard
Author-X-Name-First: M.-F.
Author-X-Name-Last: Renard
Title: Are workers close to cities paid higher nonagricultural wages in rural China?
Abstract:
It is widely recognized that
nonagricultural earnings are crucial for the welfare of rural households
in developing countries. In this study, we investigate whether workers
close to cities are paid higher nonagricultural wages than workers in
outlying rural areas. We find that workers close to urban areas not only
benefit from more opportunities to engage in nonagricultural activities,
but also from better paid jobs. In addition, we provide evidence on the
transmission channels at work. The issue of spatial differences in
nonagricultural earnings that we highlight is extremely serious for rural
China where, because of the strong institutional restrictions on labour
mobility, living conditions in an individual's birthplace still
significantly affect his well-being.
Journal: Applied Economics
Pages: 4308-4322
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.778953
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778953
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4308-4322
Template-Type: ReDIF-Article 1.0
Author-Name: Garc𨀍
Author-X-Name-First:
Author-X-Name-Last: Garc𨀍
Author-Name: Prieto-Alaiz
Author-X-Name-First:
Author-X-Name-Last: Prieto-Alaiz
Author-Name: Sim
Author-X-Name-First:
Author-X-Name-Last: Sim
Title: The influence of macroeconomic factors on personal income distribution in developing countries: a parametric modelling approach
Abstract:
This article examines the influence of
macroeconomic factors on personal income distribution in developing
countries using a parametric modelling approach. The technique is based on
the selection and estimation of a theoretical parametric model (a Dagum
distribution) which fits accurately to the empirical income distributions
of the countries examined. The parameters of the model specifically
related to inequality are subsequently used as dependent variables in
econometric models in order to examine the impact that certain
macroeconomic variables (GDP growth, inflation, employment and real
interest rates) have on inequality. The results reveal that GDP growth,
employment rate and real interest rate are the macroeconomic factors with
greater impact in shaping personal income distribution in developing
countries.
Journal: Applied Economics
Pages: 4323-4334
Issue: 30
Volume: 45
Year: 2013
Month: 10
X-DOI: 10.1080/00036846.2013.778952
File-URL: http://hdl.handle.net/10.1080/00036846.2013.778952
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:30:p:4323-4334
Template-Type: ReDIF-Article 1.0
Author-Name: David Greenberg
Author-X-Name-First: David
Author-X-Name-Last: Greenberg
Author-Name: Johanna Walter
Author-X-Name-First: Johanna
Author-X-Name-Last: Walter
Author-Name: Genevieve Knight
Author-X-Name-First: Genevieve
Author-X-Name-Last: Knight
Title: A cost-benefit analysis of the random assignment UK Employment Retention and Advancement Demonstration
Abstract:
This article presents a cost-benefit
analysis of Britain's Employment Retention and Advancement (ERA)
demonstration, which was evaluated through the first large-scale
randomized control trial in the UK. ERA used a combination of job coaching
and financial incentives in attempting to help long-term unemployed men
and low-income lone parents sustain employment and progress in work once
they were employed. Using both administrative and survey data, ERA's
effects on benefits and costs were estimated through impact analyses,
which exploited the experimental design. The findings indicated that ERA
was cost beneficial for long-term unemployed adult men, but not for lone
parents. The key findings appear robust to sensitivity tests. Uncertainty,
as implied by the SEs of the estimated impacts, was addressed through a
Monte Carlo analysis, an approach seldom previously used in cost-benefit
analyses of social programs.
Journal: Applied Economics
Pages: 4335-4354
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.776664
File-URL: http://hdl.handle.net/10.1080/00036846.2013.776664
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4335-4354
Template-Type: ReDIF-Article 1.0
Author-Name: Benoit Dostie
Author-X-Name-First: Benoit
Author-X-Name-Last: Dostie
Author-Name: Lene Kromann
Author-X-Name-First: Lene
Author-X-Name-Last: Kromann
Title: New estimates of labour supply elasticities for married women in Canada 1996--2005
Abstract:
In this article, we estimate income and
substitution labour supply and participation elasticities for Canadian
married women using data from the Survey of Labour and Income Dynamics
1996--2005. We use the Canadian Tax and Credit Simulator (CTaCS) and
detailed information on the structure of income at the household level to
compute the marginal tax rates faced by each individual. We then use these
marginal tax rates to compute net own-wage, spouse-wage, and nonlabour
income. We show how the magnitude of the estimated elasticities varies
depending on whether net or gross wages and income are used in the
estimation procedure, and quantify biases caused by using average tax
rates instead of marginal tax rates. Finally, because marginal tax rates
vary significantly over the sample, we use quantile regressions to compare
elasticities at different points of the hours distribution. Overall, our
results show that public policies now have, on average, less scope for
influencing hours of work than 10 years ago. However, the quantile results
show that wives working fewer hours per week are more sensitive to changes
in their own or spouses' wages.
Journal: Applied Economics
Pages: 4355-4368
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.776663
File-URL: http://hdl.handle.net/10.1080/00036846.2013.776663
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4355-4368
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Ruixin Zhang
Author-X-Name-First: Ruixin
Author-X-Name-Last: Zhang
Title: The J-curve: evidence from commodity trade between UK and China
Abstract:
China is often accused of manipulating its
currency to gain international competitiveness. Previous studies have
tried to address this issue by investigating the impact of yuan
depreciation on China's trade balance. Not only have they failed to
establish the link between the Chinese exchange rate and its trade balance
with the rest of the world but also between China and her major trading
partners. In this article, we consider the China--UK trade balance and
disaggregate their trade flows by commodity. Out of the 47 industries
considered, we show that the real depreciation has favourable short-run
effects in most industries. However, the short-run effects last into the
long run only in seven cases.
Journal: Applied Economics
Pages: 4369-4378
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.783680
File-URL: http://hdl.handle.net/10.1080/00036846.2013.783680
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4369-4378
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Author-Name: Bert De Groot
Author-X-Name-First: Bert
Author-X-Name-Last: De Groot
Title: Do commercial real estate prices have predictive content for GDP?
Abstract:
Using a uniquely compiled database
concerning rental prices of commercial real estates, which are property of
the largest broker in the Netherlands, we examine whether these prices
have predictive value for quarterly economic growth. In contrast to
related studies, we document that the mean price contains no relevant
information, whereas other properties of the price distributions have. We
show that these distributions can be described by mixtures of two
distributions, reflecting low-end and high-end price segments. Our main
findings are that higher economic growth is predictable from more new
buildings being rented, more variation in the price levels and a larger
size of the low-price segment, while lower economic growth emerges when
the differences in prices between high-end and low-end segments increase
and when the average price level in the low-price segment increases.
Journal: Applied Economics
Pages: 4379-4384
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.783681
File-URL: http://hdl.handle.net/10.1080/00036846.2013.783681
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4379-4384
Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Title: Interrelationships among banks, stock markets and economic growth: an empirical investigation
Abstract:
This article utilizes a simultaneous
equations model to study the relationships among economic growth, banking
and stock market development. In contrast to conventional instrumental
variable approach, we implement the analysis via the methodology of
identification through heteroscedasticity. Using Beck and Levine (2004)
dataset, we find that each of the three variables interacts in important
ways. While both are conducive to economic growth, banking development
matters more for growth in low-income countries and stock market
development is more favourable to growth in high-income or low-inflation
ones. The data also reveal coexistence of a positive effect of banking
development on stock market development and a negative effect of stock
market development on banking development. Besides, the feedback effects
of growth on both banking and stock market development are found.
Journal: Applied Economics
Pages: 4385-4394
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.786165
File-URL: http://hdl.handle.net/10.1080/00036846.2013.786165
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4385-4394
Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨁌orena Mar𑁥l Cristo
Author-X-Name-First: Mar𨁌orena
Author-X-Name-Last: Mar𑁥l Cristo
Author-Name: Marta G-Puig
Author-X-Name-First: Marta
Author-X-Name-Last: G-Puig
Title: Pass-through in dollarized countries: should Ecuador abandon the US dollar?
Abstract:
In this article, we examine the
convenience of dollarization for Ecuador today. As Ecuador is strongly
integrated financially and commercially with the United States, the
exchange rate pass-through should be zero. However, we sustain that rising
rates of imports from trade partners other than the United States and
subsequent real effective exchange rate depreciations are causing the
pass-through to move away from zero. Here, in the framework of the Vector
Error Correction Model, we analyse the impulse response function and
variance decomposition of the inflation variable. We show that the
developing economy of Ecuador is importing inflation from its main trading
partners, most of them emerging countries with appreciated currencies. We
argue that if Ecuador recovered both its monetary and exchange rate
instruments, it would be able to fight against inflation. We believe such
an analysis could be extended to other countries with pegged exchange rate
regimes.
Journal: Applied Economics
Pages: 4395-4411
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.786166
File-URL: http://hdl.handle.net/10.1080/00036846.2013.786166
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4395-4411
Template-Type: ReDIF-Article 1.0
Author-Name: Frank den Butter
Author-X-Name-First: Frank
Author-X-Name-Last: den Butter
Author-Name: Abdessalam Es-Saghir
Author-X-Name-First: Abdessalam
Author-X-Name-Last: Es-Saghir
Title: Productivity effects of trade and product innovations: an empirical analysis for 13 OECD countries
Abstract:
This article distinguishes two sources of
productivity increases, namely product/process innovations and trade
innovations. An empirical analysis for 13 OECD countries shows that
product/process innovations, represented by aggregated investments in
Research and Development (R&D), are major determinants for productivity
growth in large industrial countries, whereas trade innovations,
represented by export intensity, seem to contribute most to productivity
in trade-oriented economies. These trade innovations relate to the ability
to reduce transaction costs so that these trading nations specialize in
the organization of production in this era of globalization where the
production chain is split up in more and more component parts.
Journal: Applied Economics
Pages: 4412-4418
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.786167
File-URL: http://hdl.handle.net/10.1080/00036846.2013.786167
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4412-4418
Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Nachane
Author-X-Name-First: Dilip
Author-X-Name-Last: Nachane
Author-Name: Amlendu Kumar Dubey
Author-X-Name-First: Amlendu Kumar
Author-X-Name-Last: Dubey
Title: Trend and cyclical decoupling: new estimates based on spectral causality tests and wavelet correlations
Abstract:
The issue of decoupling
of emerging market economies (EMEs) (especially in the Asian region) from
the developments in advanced economies has become a subject of lively
debate in recent years. Basically, decoupling seems to comprise three
sub-hypotheses: (i) growth spillovers from advanced
countries to EMEs decreasing progressively in importance, (ii) business
cycles in EMEs becoming less synchronized with those of
the advanced world and (iii) strengthening of growth
spillovers and cyclical synchronization among
the EMEs as a group. The received literature fails to distinguish
adequately between the trend and cyclical aspects of the decoupling
relationship. We resort to two frequency domain methods (nonstationary
spectral causality testing and wavelet correlations), which seem to offer
a neat separation of trend and cyclical decoupling. Based on a sample of
seven EMEs from the Asian region (including the two large EMEs -- China
and India), we uncover strong evidence favouring both trend and
cyclical decoupling.
Journal: Applied Economics
Pages: 4419-4428
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.788781
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788781
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4419-4428
Template-Type: ReDIF-Article 1.0
Author-Name: Vicki L. Bogan
Author-X-Name-First: Vicki L.
Author-X-Name-Last: Bogan
Title: Household investment decisions and offspring gender: parental accounting
Abstract:
Numerous behavioural factors have been
identified as having an impact on household stockholding decisions. Given
there is both theoretical and empirical evidence to support the premise
that offspring gender can influence specific types of parental
preferences, I test the theory that offspring gender has an effect on
parental investment decision-making. I find that offspring gender does
influence household stock market participation. Specifically, I find that
having only female offspring can significantly increase the probability of
stockholding. Given stockholding can have large effects on household
wealth levels and that family wealth levels affect intergenerational
transfers, this finding could have important implications for
understanding distributional welfare issues.
Journal: Applied Economics
Pages: 4429-4442
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.788782
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788782
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4429-4442
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Gius
Author-X-Name-First: Mark
Author-X-Name-Last: Gius
Title: The effects of merit pay on teacher job satisfaction
Abstract:
The purpose of this study is to determine
if the existence of a district-level merit pay system has any effects on
teacher job satisfaction. Using a large sample of public school teachers
from the year 2007, the results of this study suggest that teachers who
work in districts that use a merit pay system are no less satisfied with
their jobs than are other teachers; these results are consistent for both
an ordered probit model and a two-stage analysis. Although the effect of
merit pay on overall job satisfaction was insignificant, teachers in merit
pay districts were less enthusiastic, did not think teaching was
important, and were more likely to leave for better pay. However, in
examining a sample of teachers who worked only in merit pay districts, it
was found that teachers who received merit pay were more satisfied overall
with their jobs than were teachers who did not receive merit pay.
Journal: Applied Economics
Pages: 4443-4451
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.788783
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788783
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4443-4451
Template-Type: ReDIF-Article 1.0
Author-Name: Hoanjae Park
Author-X-Name-First: Hoanjae
Author-X-Name-Last: Park
Author-Name: Walter N. Thurman
Author-X-Name-First: Walter N.
Author-X-Name-Last: Thurman
Title: A Bayesian approach to aggregation in demand systems: smoothing with perfect substitution priors
Abstract:
Demand analysis requires aggregation of
commodities. Some are imposed at the data collection level, leaving some
for the estimation level. When data are collected, the implicit assumption
underlying the aggregation is perfect substitutability: one gallon of
gasoline is viewed by consumers as equivalent to another gallon; hence,
the two are added together. While such aggregation can be carried out
further by the data analyst, it is difficult to incorporate perfect
substitutability into the estimation of direct demand systems. Perfect
substitution in that context implies discontinuous demand functions, which
are not nested within standard empirical demand systems. Perfect
substitution is much more easily handled in a system of inverse demands,
though an empirical method to impose perfect substitutability in an
inverse demand system has not previously appeared in the literature. In
this article, we develop such a method, which allows perfect
substitutability to be imposed as a prior restriction. We use Leamer's
information contract curve as a tool to flexibly impose the substitution
restriction and to investigate consistency between the data and prior. We
illustrate the method with an application to inverse demands for fish in
Korea.
Journal: Applied Economics
Pages: 4452-4462
Issue: 31
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.788784
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788784
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Handle: RePEc:taf:applec:v:45:y:2013:i:31:p:4452-4462
Template-Type: ReDIF-Article 1.0
Author-Name: Jos頉. Castillo-Manzano
Author-X-Name-First: Jos頉.
Author-X-Name-Last: Castillo-Manzano
Author-Name: Lourdes Lopez-Valpuesta
Author-X-Name-First: Lourdes
Author-X-Name-Last: Lopez-Valpuesta
Author-Name: Manuel Marchena-G
Author-X-Name-First: Manuel
Author-X-Name-Last: Marchena-G
Author-Name: Diego J. Pedregal
Author-X-Name-First: Diego J.
Author-X-Name-Last: Pedregal
Title: How much does water consumption drop when each household takes charge of its own consumption? The case of the city of Seville
Abstract:
Making individuals take charge of their
own domestic water consumption is one of the measures used to reduce the
growing demand for this resource and to achieve sustainable consumption
compatible with the goal of equity. The use of individual meters instead
of communal meters and fixing tariffs by inhabitant rather than by
household are two measures aimed at achieving these objectives. This
article assesses the measures put in place in the Seville metropolitan
area during the last 20 years with an unobserved component model set up in
a state-space framework estimated using maximum likelihood. Water
consumption elasticity to individual meters has changed from --0.307 to
--1.317 with the introduction of per inhabitant tariffs, which
demonstrates that there are water-saving synergies when the two measures
are implemented together. The reductions in water consumption achieved
with these measures are also longer lasting than the changes in
consumption habits during the frequent droughts in Seville.
Journal: Applied Economics
Pages: 4465-4473
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.788785
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788785
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4465-4473
Template-Type: ReDIF-Article 1.0
Author-Name: Boya Liu
Author-X-Name-First: Boya
Author-X-Name-Last: Liu
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Title: Effects of trade diversion and trade creation of MERCOSUR on US and world apple markets
Abstract:
Apples are the third most valuable fruit
in the United States and account for 18% of US fruit exports. Chile is a
major competitor to the United States in the MERCOSUR market, since it is
one of the leading apple producing countries and enjoys the tariff
reductions as a member of MERCOSUR. Consequently, Chilean exports displace
US exports in MERCOSUR. In addition, other MERCOSUR members import more
from lower-cost Chile, leading to a reduction in production and an
increase in consumption in these countries. This study develops a
theoretical and an empirical model of world apple market to quantify the
trade diversion and trade creation effects of the MERCOSUR free trade
agreement and to estimate the welfare impacts.
Journal: Applied Economics
Pages: 4474-4486
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.788786
File-URL: http://hdl.handle.net/10.1080/00036846.2013.788786
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4474-4486
Template-Type: ReDIF-Article 1.0
Author-Name: Ant Afonso
Author-X-Name-First: Ant
Author-X-Name-Last: Afonso
Author-Name: Miguel St. Aubyn
Author-X-Name-First: Miguel
Author-X-Name-Last: St. Aubyn
Title: Public and private inputs in aggregate production and growth: a cross-country efficiency approach
Abstract:
In a cross section of OECD countries, we
replace the macroeconomic production function by a production possibility
frontier, total factor productivity being the composite effect of
efficiency scores and possibility frontier changes. We consider, for the
periods 1970, 1980, 1990 and 2000 one output -- GDP per worker -- and
three inputs -- human capital, public physical capital per worker and
private physical capital per worker. We use a semi-parametric analysis,
computing Malmquist productivity indexes, and we also resort to stochastic
frontier analysis. Results show that private capital is important for
growth, although public and human capital also contribute positively. A
governance indicator, a nondiscretionary input, explains inefficiency.
Better governance helps countries to achieve a better performance.
Nonparametric and parametric results coincide rather closely on the
movements of the countries vis-୶is the possibility
frontier and on their relative distances to the frontier.
Journal: Applied Economics
Pages: 4487-4502
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.791018
File-URL: http://hdl.handle.net/10.1080/00036846.2013.791018
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4487-4502
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Inyeob Ji
Author-X-Name-First: Philip Inyeob
Author-X-Name-Last: Ji
Author-Name: Sangbae Kim
Author-X-Name-First: Sangbae
Author-X-Name-Last: Kim
Title: Mean-reversion in closed-end fund discount: evidence from half-life
Abstract:
This article examines the mean-reversion
properties of the discount on UK and US closed-end funds. While the
discounts are tested I(1), strong statistical evidence of mean-reversion
is ascertained by bias-corrected bootstrap half-life estimates. The
estimates also indicate that equity-based funds converge to the
steady-state level faster than fixed income funds. In addition, although
an equilibrium pricing condition postulates an inverse relation between
half-life and the discount size, correlation estimates fail to show strong
support for the relation.
Journal: Applied Economics
Pages: 4503-4515
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.791019
File-URL: http://hdl.handle.net/10.1080/00036846.2013.791019
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4503-4515
Template-Type: ReDIF-Article 1.0
Author-Name: Michele Raitano
Author-X-Name-First: Michele
Author-X-Name-Last: Raitano
Author-Name: Francesco Vona
Author-X-Name-First: Francesco
Author-X-Name-Last: Vona
Title: Peer heterogeneity, school tracking and students' performances: evidence from PISA 2006
Abstract:
This paper analyses the interaction
between school-tracking policies and peer effects in OECD countries. Using
the Programme for International Student Assessment (PISA) 2006 data set,
we show that linear peer effects are slightly concave-shaped in both
early-tracking and comprehensive educational systems, but generally
stronger in the early-tracking one. Second, and more interestingly, the
effect of peer heterogeneity goes in opposite directions in the two
systems. In both student- and school-level estimates, peer heterogeneity
reduces students' achievements in the comprehensive system while it has a
positive impact in the early-tracking one. This reversal effect is robust
to different definitions of early-tracking system, to the inclusion of
pseudo-school fixed effects and to the exclusion of outlier countries.
Finally, peer effects are stronger for low-ability students in both groups
of countries.
Journal: Applied Economics
Pages: 4516-4532
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.791020
File-URL: http://hdl.handle.net/10.1080/00036846.2013.791020
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4516-4532
Template-Type: ReDIF-Article 1.0
Author-Name: Lior Fink
Author-X-Name-First: Lior
Author-X-Name-Last: Fink
Author-Name: Yossi Lichtenstein
Author-X-Name-First: Yossi
Author-X-Name-Last: Lichtenstein
Author-Name: Simon Wyss
Author-X-Name-First: Simon
Author-X-Name-Last: Wyss
Title: Ex post adaptations and hybrid contracts in software development services
Abstract:
We follow the recent literature on
ex post adaptations in procurement and argue that highly
volatile specifications result in multiple variations of fixed price (FP)
and time and materials (T&M) contracts. Specifically, placing a cap on
specification change in FP contracts prevents specification volatility,
similar to the way that placing a cap on the price in T&M contracts
prevents price escalation. We argue that these hybrid mechanisms are
particularly important in software development contracting, a new critical
business capability involving frequent and costly ex post
adaptations to specification change. The level of completeness in these
contractual archetypes is hypothesized to be determined by contracting
costs and benefits, where costs are related to project uncertainty and
benefits are related to the likelihood of vendor opportunism. We test this
hypothesis with a unique data set of 270 software development contracts
entered into by a leading international bank. The analysis confirms the
existence of multiple hybrid contracts that mitigate both price escalation
and specification volatility. It also shows that contracting costs and
benefits explain more variance in contract choice when these hybrids are
included, uncovering the detailed mechanisms used to curb opportunism when
the vendor is less familiar to the client.
Journal: Applied Economics
Pages: 4533-4544
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.791021
File-URL: http://hdl.handle.net/10.1080/00036846.2013.791021
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4533-4544
Template-Type: ReDIF-Article 1.0
Author-Name: Ant Afonso
Author-X-Name-First: Ant
Author-X-Name-Last: Afonso
Author-Name: Lu. Costa
Author-X-Name-First: Lu.
Author-X-Name-Last: Costa
Title: Market power and fiscal policy in OECD countries
Abstract:
We compute average markups as a measure of
market power throughout time and study their interaction with fiscal
policy and macroeconomic variables in a VAR framework. From
impulse-response functions, the results, with annual data for a set of 14
OECD countries, show that the markup (i) depicts a pro-cyclical behaviour
with productivity shocks and (ii) a counter-cyclical behaviour with fiscal
spending shocks. We also use a PVAR, increasing the efficiency in the
estimations, which confirms the country-specific results.
Journal: Applied Economics
Pages: 4545-4555
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795275
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795275
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4545-4555
Template-Type: ReDIF-Article 1.0
Author-Name: Vr E. Barrios
Author-X-Name-First: Vr E.
Author-X-Name-Last: Barrios
Author-Name: M. Consuelo Colom
Author-X-Name-First: M. Consuelo
Author-X-Name-Last: Colom
Author-Name: M. Cruz Mol鳠
Author-X-Name-First: M. Cruz
Author-X-Name-Last: Mol鳠
Title: Life cycle and housing decisions: a comparison by age cohorts
Abstract:
The use of decomposition methodologies
when the involved variable is continuous is not common in the literature.
This article uses this methodology, together with other decomposition
methodologies, to explain how age can influence on housing decisions. In
particular, we use Spanish data to study whether the age of the
householder plays a significant role in influencing household decisions
with respect to housing tenure and demand. From the comparison of housing
decisions between different groups of households classified by the age of
the householders, we conclude that age plays the primary role in
explaining the gap between households regarding tenure choice, while it
shares its importance with other covariates of the model in the housing
demand decision.
Journal: Applied Economics
Pages: 4556-4568
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795276
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795276
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4556-4568
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: Jeff Luckstead
Author-X-Name-First: Jeff
Author-X-Name-Last: Luckstead
Author-Name: Ron Mittelhammer
Author-X-Name-First: Ron
Author-X-Name-Last: Mittelhammer
Title: Econometric issues related to identification of the market power parameter
Abstract:
This study demonstrates the crucial role
the specification of the cost function plays in identifying the market
power parameter in autarky models. For constant marginal cost or marginal
cost with quantity interacting with input prices, the market power
parameter in autarky models in identified without a rotation of the demand
curve. If a comodity is sold in both domestic and foreign markets, the
market power parameters are identified regardless of the specific form of
the marginal cost and demand specifications.
Journal: Applied Economics
Pages: 4569-4574
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795277
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795277
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4569-4574
Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: J. R. Clark
Author-X-Name-First: J. R.
Author-X-Name-Last: Clark
Title: An extension of the Tiebout hypothesis of voting with one's feet: the Medicaid magnet hypothesis
Abstract:
This study empirically extends the Tiebout
hypothesis of 'voting with one's feet' in two ways. First, it provides
updated estimates using net migration data for the period 2000--2008.
Second, in addition to investigating variables reflecting public education
outlays, property taxation and income taxation, it investigates whether
migrants are attracted to states with higher Medicaid benefits per
recipient. The latter hypothesis is referred to as the 'Medicaid magnet
hypothesis'. The analysis includes three economic variables, three quality
of life variables and three Tiebout-type factors in addition
to Medicaid benefits. Results indicate that consumer voters were
attracted to states with higher per pupil public school spending, lower
property and income tax rates, and that certain
consumer-voters may be attracted to states that offer higher levels of
Medicaid benefits.
Journal: Applied Economics
Pages: 4575-4583
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795278
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795278
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4575-4583
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Ken Hung
Author-X-Name-First: Ken
Author-X-Name-Last: Hung
Title: Revisiting purchasing power parity in Latin America: sequential panel selection method
Abstract:
This study applies the Sequential Panel
Selection Method (SPSM), proposed by Chortareas and Kapetanios (2009) to
test the validity of long-run purchasing power parity (PPP) in a sample of
15 Latin American countries using monthly data spanning from December 1994
to February 2010. SPSM classifies the whole panel into a group of
stationary and nonstationary series. In doing so, we can clearly identify
how many and which series in the panel are stationary processes. Empirical
results from the SPSM using the Panel KSS unit root test (Ucar and Omay,
2009) with a Fourier function which accounts for any structural break in
the data indicate that PPP holds in many of the Latin American countries
studied.
Journal: Applied Economics
Pages: 4584-4590
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795279
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795279
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4584-4590
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Peichl
Author-X-Name-First: Andreas
Author-X-Name-Last: Peichl
Author-Name: Nico Pestel
Author-X-Name-First: Nico
Author-X-Name-Last: Pestel
Title: Multidimensional affluence: theory and applications to Germany and the US
Abstract:
This article suggests multidimensional
affluence measures for the top of the distribution. In contrast to
commonly used top income shares, they allow the analysis of the extent,
intensity and breadth of affluence in several dimensions within a common
framework. We illustrate this by analysing the role of income and wealth
as dimensions of multidimensional well-being in Germany and the US in 2007
as well as for the US over the period 1989--2007. We find distinct country
differences with the country ranking depending on the measure. While in
Germany wealth predominantly contributes to the intensity of affluence,
income is more important in the US.
Journal: Applied Economics
Pages: 4591-4601
Issue: 32
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795280
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795280
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Handle: RePEc:taf:applec:v:45:y:2013:i:32:p:4591-4601
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey B. Nugent
Author-X-Name-First: Jeffrey B.
Author-X-Name-Last: Nugent
Author-Name: Malgorzata Switek
Author-X-Name-First: Malgorzata
Author-X-Name-Last: Switek
Title: Oil prices and life satisfaction: asymmetries between oil exporting and oil importing countries
Abstract:
In spite of general consensus on the
importance of oil prices for objective measures of economic well-being
across countries, almost no research has been carried out to analyse the
effects of oil prices on subjective well-being internationally. Using the
World Values Survey (2009), we help fill this gap by studying the effects
of oil prices on life satisfaction for two groups of countries, oil
importers and oil exporters. Although some previous studies have shown
negative effects of oil prices on subjective well-being of one oil
importing country the United States, since it is an outlier in terms of
dependence on automobiles and in gasoline consumption per capita, these
findings may not be representative of other oil importing countries. Our
results show that, in fact, oil prices have quite strong negative effects
on life satisfaction in a sample of over 40 oil importing countries. By
contrast, for oil exporting countries for which there have been virtually
no previous quantitative studies, but theoretical analyses suggest the
results could be ambiguous, we find strong positive effects on life
satisfaction. Hence, our results reveal quite strong asymmetries in the
effects of oil prices on life satisfaction between oil importers and oil
exporters.
Journal: Applied Economics
Pages: 4603-4628
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795281
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795281
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4603-4628
Template-Type: ReDIF-Article 1.0
Author-Name: Janko Gorter
Author-X-Name-First: Janko
Author-X-Name-Last: Gorter
Author-Name: Jacob A. Bikker
Author-X-Name-First: Jacob A.
Author-X-Name-Last: Bikker
Title: Investment risk taking by institutional investors
Abstract:
According to theory, institutional
investors face both risk-management and risk-shifting incentives. This
article assesses the relevance of these conflicting incentives for Dutch
pension funds and insurance firms over the period 1995 to 2009. Using a
unique and extended data set, we observe a significant positive
relationship between capital and asset risk for insurers, indicating that
risk-management incentives dominate in the Dutch insurance industry.
Risk-shifting incentives, however, also seem relevant, as stock insurers
take more investment risk than their mutual peers. For Dutch pension
funds, we conclude that overall neither risk-shifting nor risk-management
incentives seem to dominate. Interestingly, we find that professional
group pension funds take significantly less investment risk than other
types of pension funds. This finding is in line with expectations, as in
professional group pension funds potential incentive conflicts between
pension fund participants and the employer are effectively internalized.
Journal: Applied Economics
Pages: 4629-4640
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795282
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795282
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4629-4640
Template-Type: ReDIF-Article 1.0
Author-Name: Jakob B. Madsen
Author-X-Name-First: Jakob B.
Author-X-Name-Last: Madsen
Author-Name: Eric Yan
Author-X-Name-First: Eric
Author-X-Name-Last: Yan
Title: The first Great Divergence and the evolution of cross-country income inequality during the last millennium: the role of institutions and culture
Abstract:
Using a millennium of data for 12
countries in the East and in the West, this article tests the extent to
which contracting institutions, property right institutions and culture
can explain economic development and the Great Divergence. It is tested
whether these theories influence growth through science and technology or
through human capital or channels that are independent of these two
channels. It is found that culture, contracting institutions and property
right institutions have all been relevant for growth and development.
Journal: Applied Economics
Pages: 4641-4650
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795283
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795283
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4641-4650
Template-Type: ReDIF-Article 1.0
Author-Name: Wanjun Yao
Author-X-Name-First: Wanjun
Author-X-Name-Last: Yao
Author-Name: Tomoko Kinugasa
Author-X-Name-First: Tomoko
Author-X-Name-Last: Kinugasa
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: An empirical analysis of the relationship between economic development and population growth in China
Abstract:
China has experienced a dramatic
demographic transition since the latter half of the twentieth century, and
thus, assessing the global economic implications is an important issue.
This article uses time-series data on China to estimate the determinants
of gross domestic product (GDP) per capita. According to the results of
the presented co-integration analysis, population has a significantly
negative impact on GDP per capita, while savings rate, total factor
productivity and degree of industrialization have significantly positive
impacts on GDP per capita. These results suggest that the share of the
working-age population relative to the total population does not have a
strong influence on GDP per capita. Therefore, the contribution of the
working-age population to economic growth might not be as large as
previously assumed. It is also possible that an increase in savings,
remarkable industrialization and rapid technological progress have all
stimulated economic growth in China greatly.
Journal: Applied Economics
Pages: 4651-4661
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.795284
File-URL: http://hdl.handle.net/10.1080/00036846.2013.795284
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4651-4661
Template-Type: ReDIF-Article 1.0
Author-Name: F. Karam
Author-X-Name-First: F.
Author-X-Name-Last: Karam
Author-Name: C. Zaki
Author-X-Name-First: C.
Author-X-Name-Last: Zaki
Title: On the determinants of trade in services: evidence from the MENA region
Abstract:
This article examines the determinants of
aggregate flows of service trade in MENA countries using an adapted
version of the gravity model and a panel data set covering the 2000 to
2009 period for 21 countries and 10 sectors. A new determinant of trade
performance is introduced: the number of bound commitments undertaken by a
sector in the WTO as well as the availability of those commitments by mode
of supply. The results show that being a WTO member boosts trade in
services. In addition, the number of bound commitments increases exports,
imports and trade in services. This positive and significant effect
remains robust even after controlling for several econometric issues,
namely, the selection bias related to the WTO membership and the
endogeneity of commitments.
Journal: Applied Economics
Pages: 4662-4676
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.797560
File-URL: http://hdl.handle.net/10.1080/00036846.2013.797560
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4662-4676
Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Forecasting house prices for the four census regions and the aggregate US economy in a data-rich environment
Abstract:
This article considers the ability of
large-scale (involving 145 fundamental variables) time-series models,
estimated by dynamic factor analysis and Bayesian shrinkage, to forecast
real house price growth rates of the four US census regions and the
aggregate US economy. Besides the standard Minnesota prior, we also use
additional priors that constrain the sum of coefficients of the VAR
models. We compare 1- to 24-months-ahead forecasts of the large-scale
models over an out-of-sample horizon of 1995:01--2009:03, based on an
in-sample of 1968:02--1994:12, relative to a random walk model, a
small-scale VAR model comprising just the five real house price growth
rates and a medium-scale VAR model containing 36 of the 145 fundamental
variables besides the five real house price growth rates. In addition to
the forecast comparison exercise across small-, medium- and large-scale
models, we also look at the ability of the 'optimal' model (i.e. the model
that produces the minimum average mean squared forecast error) for a
specific region in predicting ex ante real house prices
(in levels) over the period of 2009:04 till 2012:02. Factor-based models
(classical or Bayesian) perform the best for the North East, Mid-West,
West census regions and the aggregate US economy and equally well to a
small-scale VAR for the South region. The 'optimal' factor models also
tend to predict the downward trend in the data when we conduct an
ex ante forecasting exercise. Our results highlight the
importance of information content in large number of fundamentals in
predicting house prices accurately.
Journal: Applied Economics
Pages: 4677-4697
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.797561
File-URL: http://hdl.handle.net/10.1080/00036846.2013.797561
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4677-4697
Template-Type: ReDIF-Article 1.0
Author-Name: M. Y. Çakır
Author-X-Name-First: M. Y.
Author-X-Name-Last: Çakır
Author-Name: A. Kabundi
Author-X-Name-First: A.
Author-X-Name-Last: Kabundi
Title: Business cycle co-movements between South Africa and the BRIC countries
Abstract:
This article examines the relationships
between South African economy and the economies of the BRIC (Brazil,
Russia, India and China). In particular, it identifies the nature and key
features of the co-movement of South African business cycles with cycles
of the BRIC countries. It uses the dynamic factor model to a set of 307
macroeconomic series during the period 1995Q2 to 2009Q4. We found
significant evidence of synchronization between South Africa and the BRIC
countries over the business cycle, although the magnitude of co-movement
differs with each country. India portrays strong ties with South Africa
over time. Moreover, Brazil, China and Russia lead South Africa in the
long run, while India is contemporaneous. Further, the findings imply that
the first two factors are BRICS factors while the third one is a US
factor.
Journal: Applied Economics
Pages: 4698-4718
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.797562
File-URL: http://hdl.handle.net/10.1080/00036846.2013.797562
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4698-4718
Template-Type: ReDIF-Article 1.0
Author-Name: Florent Fremigacci
Author-X-Name-First: Florent
Author-X-Name-Last: Fremigacci
Author-Name: Antoine Terracol
Author-X-Name-First: Antoine
Author-X-Name-Last: Terracol
Title: Subsidized temporary jobs: lock-in and stepping stone effects
Abstract:
This article evaluates the effectiveness
of subsidized temporary jobs as stepping stones to regular employment. We
study a French program that allows job seekers to work part-time while
remaining registered with the unemployment agency. In this program,
insured individuals concurrently receive part of their unemployment
benefits and wage income. Using administrative data, we find that
subsidized temporary jobs have both a significant lock-in effect and a
significant positive post-treatment impact on the hazard rate to
employment. Since individuals facing a high implicit tax rate have
incentives to self-select into better part-time jobs, we also find that a
higher tax rate leads to a weaker lock-in effect and a stronger
post-treatment effect. Simulations suggest that the lock-in effect first
dominates, but that the overall effect eventually becomes positive. They
also point to ways of improving the effectiveness of the policy.
Journal: Applied Economics
Pages: 4719-4732
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.797644
File-URL: http://hdl.handle.net/10.1080/00036846.2013.797644
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4719-4732
Template-Type: ReDIF-Article 1.0
Author-Name: Zhiwei Xu
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Xu
Title: Univariate unobserved-component model with a nonrandom-walk permanent component
Abstract:
In this article, we revisit the univariate
unobserved-component (UC) model of the US GDP by relaxing the traditional
random-walk assumption of the permanent component. Since our general UC
model is unidentified, we investigate the upper bound of the contribution
of the transitory component, and find the GDP fluctuation is dominated by
the permanent component.
Journal: Applied Economics
Pages: 4733-4737
Issue: 33
Volume: 45
Year: 2013
Month: 11
X-DOI: 10.1080/00036846.2013.799756
File-URL: http://hdl.handle.net/10.1080/00036846.2013.799756
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Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4733-4737
Template-Type: ReDIF-Article 1.0
Author-Name: Guillermo Felices
Author-X-Name-First: Guillermo
Author-X-Name-Last: Felices
Author-Name: Vicente Tuesta
Author-X-Name-First: Vicente
Author-X-Name-Last: Tuesta
Title: Monetary policy in a dual currency environment
Abstract:
We develop a small open economy general
equilibrium model with sticky prices and partial dollarization -- a
situation where both domestic and foreign currencies coexist. We derive a
tractable representation of the model in terms of domestic inflation and
the output gap in which a trade-off, which depends on the degree of
dollarization, arises endogenously due to the presence of foreign interest
rate shocks. We use this framework to show analytically how higher degrees
of dollarization induce larger volatilities of the output gap and
inflation, thus hampering a central bank's effectiveness to stabilize the
economy. Our impulse response functions show that the transmission of such
shocks has a positive (negative) effect on inflation and negative
(positive) effect on the output gap when money aggregates and consumption
are complements (substitutes).
Journal: Applied Economics
Pages: 4739-4753
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.804165
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804165
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4739-4753
Template-Type: ReDIF-Article 1.0
Author-Name: Omar S. Dahi
Author-X-Name-First: Omar S.
Author-X-Name-Last: Dahi
Author-Name: Firat Demir
Author-X-Name-First: Firat
Author-X-Name-Last: Demir
Title: Preferential trade agreements and manufactured goods exports: does it matter whom you PTA with?
Abstract:
This article explores two questions.
First, do preferential trade agreements (PTAs) affect manufactured goods
exports of developing countries? Second, does it matter for developing
countries whom they sign the PTAs with? We find that the answer to both
questions is yes. Using bilateral manufactured goods exports data from 28
developing countries during 1978--2005; we find that South--South PTAs
have a significantly positive effect on manufactured goods exports. In
contrast, no such effect is detected in the case of South--North PTAs. We
confirmed the robustness of these findings to estimation methodology,
sample selection, time period, zero trade flows and multilateral trade
resistance.
Journal: Applied Economics
Pages: 4754-4772
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.804169
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804169
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4754-4772
Template-Type: ReDIF-Article 1.0
Author-Name: Orla A. Murphy
Author-X-Name-First: Orla A.
Author-X-Name-Last: Murphy
Author-Name: Ping Wang
Author-X-Name-First: Ping
Author-X-Name-Last: Wang
Author-Name: Sunny X. Wang
Author-X-Name-First: Sunny X.
Author-X-Name-Last: Wang
Author-Name: Greg Tkacz
Author-X-Name-First: Greg
Author-X-Name-Last: Tkacz
Title: An economic efficiency study on different regions of Ghana via Slack-based data envelopment analysis and regression analysis
Abstract:
In this article, we evaluate the
efficiency of the 10 different regions of Ghana using slack-based data
envelopment analysis, a nonparametric linear programming technique.
Furthermore, we analyse the variable effects on the efficiency of the
regions by various regression models using bootstrap sampling technique.
The data come from the 1991/1992 and 1998/1999 Ghana Living Standards
Survey. Our results show that wealth is not strongly related to
efficiency. For example, the study indicates that the Brong--Ahafo region
is the most efficient region but not the most wealthy in Ghana. Generally,
urban regions are not found to be among the most efficient regions due to
the high expenditures. The regression analysis shows that female heads of
household have an overall positive effect on efficiency. In addition, any
form of education obtained is also found to have a significant positive
effect on efficiency.
Journal: Applied Economics
Pages: 4773-4780
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.804170
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804170
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4773-4780
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas M. Walker
Author-X-Name-First: Douglas M.
Author-X-Name-Last: Walker
Author-Name: Peter T. Calcagno
Author-X-Name-First: Peter T.
Author-X-Name-Last: Calcagno
Title: Casinos and political corruption in the United States: a Granger causality analysis
Abstract:
The commercial casino industry experienced
an unprecedented expansion in the United States during the 1990s. As the
industry has grown, so has the anecdotal evidence that links the casino
industry with political corruption. However, there have been no empirical
analyses of the issue. We use state-level panel data from 1985--2000 to
posit a Granger causality analysis of the relationship between corruption
convictions of state public officials and the predicted adoptions of
casinos at the state level. We find evidence that predicted casino
adoptions Granger cause corruption convictions. This finding is suggestive
of a scenario of regulatory capture and may help explain why state-level
gaming regulatory agencies have a history of softening gaming regulations
after the initial introduction of casinos. Our study provides the first
empirical evidence linking casinos to political corruption.
Journal: Applied Economics
Pages: 4781-4795
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.804171
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804171
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4781-4795
Template-Type: ReDIF-Article 1.0
Author-Name: WenShwo Fang
Author-X-Name-First: WenShwo
Author-X-Name-Last: Fang
Author-Name: Stephen M. Miller
Author-X-Name-First: Stephen M.
Author-X-Name-Last: Miller
Title: The effect of ESCOs on carbon dioxide emissions
Abstract:
Proponents of energy service companies
(ESCOs) argue that these firms provide a crucial
instrument for delivering improved energy efficiency in public and private
sectors, thus contributing to carbon dioxide (CO2) emission
reduction around the world. Do ESCOs reduce
CO2 emissions? To answer this question, we develop an
estimating equation, which approximates the IPAT model, from a simple
model of production. We estimate a dynamic panel of 129 countries over the
period 1980--2007 to show that the ESCOs effectively
reduce CO2 emissions and that this effect increases over time.
These findings also prove robust to the inclusion of a set of control
variables, different dates of the first ESCO and the
Kyoto Protocol. Finally, we discuss energy policy implications.
Journal: Applied Economics
Pages: 4796-4804
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.804172
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804172
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4796-4804
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Eichler
Author-X-Name-First: Stefan
Author-X-Name-Last: Eichler
Author-Name: Dominik Maltritz
Author-X-Name-First: Dominik
Author-X-Name-Last: Maltritz
Title: An options-based approach to forecast competing bids: evidence for Canadian takeover battles
Abstract:
During takeover battles, a tender offer
provides a call option right to the target's shareholders: it guarantees
the offered price but maintains the chance of a higher offer. We present
an options-based approach to estimate the probability and expected value
of higher competing takeover bids using target stock price data. Analysing
Canadian takeover battles in the period 1997 to 2007 we find that during
the 5 trading days prior to the occurrence of an increased takeover bid,
the estimated probability of a higher bid exceeds 80% on average and the
expected value of a potential competing bid almost matches the realized
value.
Journal: Applied Economics
Pages: 4805-4819
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.804167
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804167
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4805-4819
Template-Type: ReDIF-Article 1.0
Author-Name: Lu Han
Author-X-Name-First: Lu
Author-X-Name-Last: Han
Author-Name: Siddhartha Bandyopadhyay
Author-X-Name-First: Siddhartha
Author-X-Name-Last: Bandyopadhyay
Author-Name: Samrat Bhattacharya
Author-X-Name-First: Samrat
Author-X-Name-Last: Bhattacharya
Title: Determinants of violent and property crimes in England and Wales: a panel data analysis
Abstract:
We examine various determinants of
property and violent crimes by using police force area level (PFA) data on
England and Wales over the period of 1992--2008. Our list of potential
determinants includes two law enforcement variables namely crime-specific
detection rate and prison population, and various socio-economic variables
such as unemployment rate, real earnings, proportion of young people and
the Gini Coefficient. By adopting a fixed effect dynamic GMM estimation
methodology we attempt to address the potential bias that arises from the
presence of time-invariant unobserved characteristics of a PFA and the
endogeneity of several regressors. There is a significant positive effect
of own-lagged crime rate. The own-lagged effect is stronger for property
crime, on an average, than violent crime. We find that, on an average,
higher detection rate and prison population leads to lower property and
violent crimes. This is robust to various specifications. However,
socio-economic variables with the exception of real earnings play a
limited role in explaining different crime types.
Journal: Applied Economics
Pages: 4820-4830
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.806782
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806782
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4820-4830
Template-Type: ReDIF-Article 1.0
Author-Name: Boubacar Camara
Author-X-Name-First: Boubacar
Author-X-Name-Last: Camara
Author-Name: Laetitia Lepetit
Author-X-Name-First: Laetitia
Author-X-Name-Last: Lepetit
Author-Name: Amine Tarazi
Author-X-Name-First: Amine
Author-X-Name-Last: Tarazi
Title: Ex ante capital position, changes in the different components of regulatory capital and bank risk
Abstract:
We investigate the impact of changes in
capital of European banks on their risk-taking behaviour from 1992 to
2006, a time period covering the Basel I capital requirements. We
specifically focus on the initial level and type of regulatory capital
banks hold. First, we assume that risk changes depend on banks' ex
ante regulatory capital position. Second, we consider the impact
of an increase in each component of regulatory capital on banks' risk
changes. We find that, for highly capitalized, adequately capitalized and
strongly undercapitalized banks, an increase in equity or in subordinated
debt positively affects risk. Moderately undercapitalized banks tend to
invest in less risky assets when their equity ratio increases but not when
they improve their capital position by extending hybrid capital or
subordinated debt. On the whole, our conclusions support the need to
implement more explicit thresholds to classify European banks according to
their capital ratios but also to clearly distinguish pure equity from
hybrid and subordinated instruments.
Journal: Applied Economics
Pages: 4831-4856
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.804166
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804166
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4831-4856
Template-Type: ReDIF-Article 1.0
Author-Name: Sherrill Shaffer
Author-X-Name-First: Sherrill
Author-X-Name-Last: Shaffer
Title: Reciprocal deposits and incremental bank risk
Abstract:
Even after controlling for other
observable factors, reciprocal deposits are associated with higher bank
risk as measured by the probability of failure and the
Z-score. These results are consistent with the moral
hazard hypothesis and reject the risk substitution hypothesis.
Journal: Applied Economics
Pages: 4857-4860
Issue: 34
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.806784
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806784
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Handle: RePEc:taf:applec:v:45:y:2013:i:34:p:4857-4860
Template-Type: ReDIF-Article 1.0
Author-Name: Marie Pfiffelmann
Author-X-Name-First: Marie
Author-X-Name-Last: Pfiffelmann
Title: What is the optimal design for lottery-linked savings programmes?
Abstract:
In this article, we determine the optimal
design of lottery-linked savings (LLS) programmes. LLS vehicles, such as
lottery bonds, are financial instruments that preserve depositors'
principal but provide randomized variable returns to these depositors
through periodic lottery drawings, in lieu of the regular
coupon payments traditionally received by bondholders. This type of asset
is very popular in Europe. We note that the framing of LLS instruments is
linked to their popularity, and we attempt to elucidate that link and
thereby determine the optimal structure of payments for LLS programmes.
Our goal is to frame LLS programmes in a manner that both maximizes their
investors' satisfaction and preserves their ability to serve as
inexpensive sources of capital for their issuers. We demonstrate that the
optimal pay-off structure is characterized by a high level of skewness, as
investors are willing to accept a decrease in the small and medium prizes
of the lottery in exchange for an increase in the grand prize. Thus, to
attract a maximum number of depositors, the issuers of LLS programmes
should prioritize the jackpot size relative to the other lottery pay-offs
and insist on high skewness for the lottery pay-offs relating to the LLS
assets.
Journal: Applied Economics
Pages: 4861-4871
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.804168
File-URL: http://hdl.handle.net/10.1080/00036846.2013.804168
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4861-4871
Template-Type: ReDIF-Article 1.0
Author-Name: Syster C. Maart-Noelck
Author-X-Name-First: Syster C.
Author-X-Name-Last: Maart-Noelck
Author-Name: Oliver Musshoff
Author-X-Name-First: Oliver
Author-X-Name-Last: Musshoff
Author-Name: Moritz Maack
Author-X-Name-First: Moritz
Author-X-Name-Last: Maack
Title: The impact of price floors on farmland investments: a real options based experimental analysis
Abstract:
Price floors are a common instrument for
market intervention to stimulate investments. In some cases, it can be
observed that a price floor does not have the stimulating effect. We
experimentally analyse the investment behaviour of students who take the
role of farmers. The experiment considers an investment problem under
uncertainty in a 'with price floor' and a 'no price floor' treatment,
stylizing a decision to take an ongoing farmland investment option. We
compare the actual investment behaviour with normative benchmarks of the
net present value and the real options approach. Furthermore, we look at
order and learning effects. The results show that the price floor has no
significant impact on the willingness to invest, whereas the effects of
order were statistically significant. The investment reluctance arising
from an abolishment is stronger than the investment stimulation arising
from the introduction of a price floor. Furthermore, neither the net
present value nor the real options approach is appropriate to predict the
investment behaviour in general. Nevertheless, the predictions of the real
options approach enable an approximation of the participants' investment
behaviour if the individuals have an adequate chance to learn from
personal experience.
Journal: Applied Economics
Pages: 4872-4882
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.806783
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806783
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4872-4882
Template-Type: ReDIF-Article 1.0
Author-Name: Garry F. Barrett
Author-X-Name-First: Garry F.
Author-X-Name-Last: Barrett
Author-Name: Milica Kecmanovic
Author-X-Name-First: Milica
Author-X-Name-Last: Kecmanovic
Title: Changes in subjective well-being with retirement: assessing savings adequacy
Abstract:
Does retirement represent a state of
relative prosperity or unanticipated hardship? To assess whether
individuals are successful in smoothing their well-being across the
transition to retirement we analyse measures of subjective well-being
(SWB) in the Household, Income and Labour Dynamics in Australia (HILDA)
Survey. Specifically, this research examines retirees' current standard of
living, financial security and overall happiness relative to their
pre-retirement levels. It is found SWB either improves or remains constant
for the large majority of individuals as they retire from the labour
force. However, there are significant disparities in changes in well-being
with retirement among the group of retirees. In particular, the subset of
individuals who are forced to retire early due to job loss or their own
health, and who find their income in retirement to be much less than
expected, report marked declines in their SWB with retirement.
Journal: Applied Economics
Pages: 4883-4893
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.806786
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806786
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4883-4893
Template-Type: ReDIF-Article 1.0
Author-Name: Magda ElSayed Kandil
Author-X-Name-First: Magda ElSayed
Author-X-Name-Last: Kandil
Title: Variation in the fiscal multiplier with the method of financing: evidence across industrial countries
Abstract:
Government spending has often varied with
the business cycle to stimulate the economy and to revive economic
conditions. However, the state of public finances has often necessitated
higher borrowing to finance widening fiscal deficits. Indeed, recent
austerity packages around the globe have crystalized the importance of
fiscal consolidation against the backdrop of rising public debt. To shed
light on recent debates regarding fiscal multipliers, the article
estimates variation in these multipliers with the method of financing,
using annual data for a sample of industrial countries. There is a large
variation in the effects of expansionary and contractinary government
spending shocks on economic variables within and across countries. The
significant effects of negative government spending shocks (fiscal
contraction) appear more prevalent than those of expansionary shocks on
real output growth, price inflation and nominal wage inflation. Consistent
with theory's predictions, the fiscal multiplier is more likely to be
negative when government spending is financed by issuing debt and less
likely in the case of monetization. The evidence confirms concerns about
the negative effect of higher debt and more expensive financing on private
activity, countering the effectiveness of fiscal policy.
Journal: Applied Economics
Pages: 4894-4927
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.807025
File-URL: http://hdl.handle.net/10.1080/00036846.2013.807025
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4894-4927
Template-Type: ReDIF-Article 1.0
Author-Name: James H. Cardon
Author-X-Name-First: James H.
Author-X-Name-Last: Cardon
Author-Name: Jeffrey T. Denning
Author-X-Name-First: Jeffrey T.
Author-X-Name-Last: Denning
Author-Name: Mark H. Showalter
Author-X-Name-First: Mark H.
Author-X-Name-Last: Showalter
Title: Flexible spending accounts and the use-it-or-lose-it provision
Abstract:
Flexible spending accounts (FSAs) are a
widely used arrangement that allow employees to pay for qualified
out-of-pocket health expenses with pre-tax dollars. The original structure
of FSAs included a significant forfeiture risk if households had unused
funds in their accounts at the end of the year. In 2005, the US Treasury
made an administrative ruling that offered a grace period for spending FSA
funds after the end of the calendar year, thereby substantially reducing
forfeiture risk. We use a unique panel data set to evaluate the effects of
this rule change.We find that the change increased FSA participation rates
by about 4 percentage points (17% increase from a 23.9% baseline). We also
find that FSA election amounts increased by just over 3%, though this
result is more fragile.
Journal: Applied Economics
Pages: 4928-4939
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.808308
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808308
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4928-4939
Template-Type: ReDIF-Article 1.0
Author-Name: Erez Siniver
Author-X-Name-First: Erez
Author-X-Name-Last: Siniver
Author-Name: Yosef Mealem
Author-X-Name-First: Yosef
Author-X-Name-Last: Mealem
Author-Name: Gideon Yaniv
Author-X-Name-First: Gideon
Author-X-Name-Last: Yaniv
Title: Overeating in all-you-can-eat buffet: paying before versus paying after
Abstract:
A widespread meal-serving system commonly
blamed for contributing to the obesity epidemic is the all-you-can-eat
buffet, where customers can help themselves to as much food as they wish
to eat in a single meal for a fixed entry price. We set forth the
hypothesis that buffet restaurants' practice of collecting the price in
advance, rather than at the end of the meal, encourages overeating.
Viewing advance payment as a token of disrespectful treatment, we first
establish this result theoretically by extending two recent and competing
models on buffet behaviour to take account of the customer's treatment
experience. We then report the results of two experiments conducted in a
sushi restaurant which support our hypothesis. The experiments reveal,
ceteris paribus, that paying for the buffet meal after
eating reduces sushi consumption by about 4.5 units, as compared to paying
before eating. The result bears a straightforward and simple policy
implication: To help reduce obesity, buffet restaurants should be banned
from collecting the price in advance.
Journal: Applied Economics
Pages: 4940-4948
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.808309
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808309
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4940-4948
Template-Type: ReDIF-Article 1.0
Author-Name: P. Teixeira
Author-X-Name-First: P.
Author-X-Name-Last: Teixeira
Author-Name: V. Rocha
Author-X-Name-First: V.
Author-X-Name-Last: Rocha
Author-Name: R. Biscaia
Author-X-Name-First: R.
Author-X-Name-Last: Biscaia
Author-Name: M. F. Cardoso
Author-X-Name-First: M. F.
Author-X-Name-Last: Cardoso
Title: Competition and diversification in public and private higher education
Abstract:
The development of mass higher education
and growing competition between higher education institutions has given
increasing visibility to the issue of diversification. This article
analyses the issue of programme diversification, using a panel of 181
Portuguese higher education institutions over the period 1995 to 2007, by
comparing the behaviour of public and private institutions. The results
show that the legal status of institutions is the major determinant of
programme diversification, as private institutions are far more
specialized than their public counterparts. The study also evaluates the
role of other institutional variables, such as the institution's size,
age, location, institutional mission and research intensity, to explain
differences in the diversification behaviour of higher education
institutions. The results provide important insights, as competition has
been thought to improve the performance of higher education institutions.
Journal: Applied Economics
Pages: 4949-4958
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.808310
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808310
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4949-4958
Template-Type: ReDIF-Article 1.0
Author-Name: Gazi M. Hassan
Author-X-Name-First: Gazi M.
Author-X-Name-Last: Hassan
Author-Name: Mark J. Holmes
Author-X-Name-First: Mark J.
Author-X-Name-Last: Holmes
Title: Remittances and the real effective exchange rate
Abstract:
We examine the long-run relationship
between remittances and the real exchange rate for less-developed
countries. In a key departure from the literature, we employ a panel
cointegration approach using an innovative method for the measurement of
the multilateral real effective exchange rate and we focus on
high-remittance economies. We find a small inelastic, but significant,
long-run relationship which confirms a Dutch disease type effect. The
short-run relationship is explored using a panel vector error correction
model which confirms that short-run causality is unidirectional running
from remittances to the exchange rate. Potential asymmetries in this
relationship are identified using quantile regression analysis.
Journal: Applied Economics
Pages: 4959-4970
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.808311
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808311
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4959-4970
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph D. Alba
Author-X-Name-First: Joseph D.
Author-X-Name-Last: Alba
Author-Name: Wai-Mun Chia
Author-X-Name-First: Wai-Mun
Author-X-Name-Last: Chia
Author-Name: Zheng Su
Author-X-Name-First: Zheng
Author-X-Name-Last: Su
Title: Oil shocks and monetary policy rules in emerging economies
Abstract:
We examine the effects of shocks in the
oil market on key macroeconomic variables in small open economies using a
dynamic stochastic general equilibrium model with sticky prices and
imperfect competition under different monetary policy rules. The numerical
solutions show that the types of exchange rate regimes and monetary
policies could partly explain the trends in macroeconomic volatilities
considering negative shocks to oil supply (Hamilton, 1983) and positive
shocks to oil demand (Kilian, 2009). These findings are confirmed in
vector autoregressive responses for Chile and Israel with inflation
targeting under flexible exchange regimes and Hong Kong with fixed regime.
Journal: Applied Economics
Pages: 4971-4984
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.808312
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808312
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4971-4984
Template-Type: ReDIF-Article 1.0
Author-Name: Pian Chen
Author-X-Name-First: Pian
Author-X-Name-Last: Chen
Author-Name: Aaron Smith
Author-X-Name-First: Aaron
Author-X-Name-Last: Smith
Title: The nonlinear multidimensional relationship between stock returns and the macroeconomy
Abstract:
We use nonparametric dimension-reduction
methods to extract from a set of 15 macroeconomic variables the risk
factors that are priced in the stock market. The dominant factor moves
with the business cycle but, because it is a nonlinear function of
observed macroeconomic variables, it captures a rich set of interactions.
Low-credit risk and low-inflationary expectations have a greater positive
effect on stock returns when leading macroeconomic indicators are high
relative to current economic activity, i.e. early in the business cycle as
the economy emerges from recession. High-stock returns also arise in
periods when the economy is booming relative to its leading indicators,
but such periods tend to portend crashes.
Journal: Applied Economics
Pages: 4985-4999
Issue: 35
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.806785
File-URL: http://hdl.handle.net/10.1080/00036846.2013.806785
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Handle: RePEc:taf:applec:v:45:y:2013:i:35:p:4985-4999
Template-Type: ReDIF-Article 1.0
Author-Name: Elisabeth Mueller
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Mueller
Author-Name: Frank Reize
Author-X-Name-First: Frank
Author-X-Name-Last: Reize
Title: Loan availability and investment: can innovative companies better cope with loan denials?
Abstract:
This study examines the consequences of
loan denials for the investment performance of small- and medium-sized
German enterprises. As a consequence of a loan denial, innovative
companies experience a smaller drop in the share of actual to planned
investment than noninnovative companies. The nonrandomness of loan denials
is controlled for with a selection equation employing the intensity of
banking competition at the district level as an exclusion restriction. We
can explain the better performance of innovative companies by their
ability to increase the use of external equity financing, such as venture
capital or mezzanine capital, when facing a loan denial.
Journal: Applied Economics
Pages: 5001-5011
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.808314
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808314
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5001-5011
Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Anne Yeager
Author-X-Name-First: Elizabeth Anne
Author-X-Name-Last: Yeager
Author-Name: Michael R. Langemeier
Author-X-Name-First: Michael R.
Author-X-Name-Last: Langemeier
Title: Economic efficiency and downside risk
Abstract:
This article investigates the impact of
downside risk on cost and revenue efficiency (RE) for a sample of farms.
Downside risk or loss below a certain level of return is a concern
regardless of producer risk preferences and thus a suitable measure of
risk to use. Downside risk was measured as the weighted summation of net
farm income below the amount needed for unpaid labour during the previous
10 years. Cost and RE were estimated using traditional input and output
measures, and then re-estimated including each farm's downside risk.
Comparisons were made between the efficient farms with and without
downside risk and the average for all farms. As expected, downside risk
plays an important role in explaining farm inefficiency. Failure to
account for downside risk overstates inefficiency and can lead to
unrealistic expectations in potential efficiency improvements.
Journal: Applied Economics
Pages: 5012-5020
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.808313
File-URL: http://hdl.handle.net/10.1080/00036846.2013.808313
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5012-5020
Template-Type: ReDIF-Article 1.0
Author-Name: Diana Bowser
Author-X-Name-First: Diana
Author-X-Name-Last: Bowser
Author-Name: David Canning
Author-X-Name-First: David
Author-X-Name-Last: Canning
Title: The effect of health improvements due to tobacco control on earnings in the United States
Abstract:
There is minimal evidence causally
estimating the relationship between tobacco tax policy, population health
and earnings. This article uses state tobacco taxes as an instrument for
life expectancy to estimate the effect on earnings per capita in a panel
of almost 3000 counties in the United States over the period 1970 to 2000.
In the first stage of the model, we find that a one dollar increase in
state tobacco taxes significantly increases life expectancy between 1.9%
and 2.1%. Despite showing that tobacco tax is correlated with higher life
expectancy and that, theoretically, improvements in health from reductions
in smoking should lead to increased earnings, we find an insignificant
impact of the induced gains in life expectancy from tobacco policy on
county level earnings per capita over the period 1970 to 2000. The lack of
significance is explained through local average treatment effects and the
smaller economic impact of certain policies that impact health later in
life. These results provide further evidence that the most effective
interventions for improving income later in life are policy interventions
with a direct impact on the health of younger cohorts rather than older
cohorts.
Journal: Applied Economics
Pages: 5021-5030
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.815310
File-URL: http://hdl.handle.net/10.1080/00036846.2013.815310
File-Format: text/html
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5021-5030
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno P. Arruda
Author-X-Name-First: Bruno P.
Author-X-Name-Last: Arruda
Author-Name: Pedro L. Valls Pereira
Author-X-Name-First: Pedro L.
Author-X-Name-Last: Valls Pereira
Title: Analysis of the volatility's dependency structure during the subprime crisis
Abstract:
In this article, we test the hypothesis of
contagion amongst sectors within the United States' economy during the
subprime crisis. The econometric methodology applied here is based on the
dynamic conditional correlation model proposed by Engle (2002). Further,
we applied several Lagrange multiplier (LM)-robust tests to test whether
there were structural breaks in series' dependency structures during the
period of interest. Events theoretically classified as relevant to the
crisis upshots as well as the interactions between the moments of the
series were used as indicator functions to the referred structural breaks.
The main conclusion of this study is that one can indeed observe contagion
within almost all pairs of sectors' indices. Thus, we conclude that the
dependency structure of the sectors of interest has faced structural
changes during the years of 2007 and 2008. Hence, diversification
strategies as well as the risk analysis inherent to the portfolios'
management may have been drastically affected.
Journal: Applied Economics
Pages: 5031-5045
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.815311
File-URL: http://hdl.handle.net/10.1080/00036846.2013.815311
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5031-5045
Template-Type: ReDIF-Article 1.0
Author-Name: Raymond G. Riezman
Author-X-Name-First: Raymond G.
Author-X-Name-Last: Riezman
Author-Name: John Whalley
Author-X-Name-First: John
Author-X-Name-Last: Whalley
Author-Name: Shunming Zhang
Author-X-Name-First: Shunming
Author-X-Name-Last: Zhang
Title: Metrics capturing the degree to which individual economies are globalized
Abstract:
We discuss metrics of globalization for
individual economies as distance measures between fully integrated and
trade restricted equilibria in economies initially operating under less
than full integration with the global economy. Such metrics can be used to
construct country globalization metrics reflecting the distance of
economies from full global integration due to trade barriers, barriers to
factor flows, barriers to international financial intermediation, solved
technological diffusion and other economy-specific features yielding less
than full integration into the global economy. Many distance metrics
present themselves and none are wholly satisfactory since they each behave
differently across various displacements from integration. Distance
measures can, for instance, be small in goods space but large in price
space. We present alternative measures constructed for eight OECD
economies and comment in a concluding section on other measures used
elsewhere in the literature such as trade/GDP ratios.
Journal: Applied Economics
Pages: 5046-5061
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.815312
File-URL: http://hdl.handle.net/10.1080/00036846.2013.815312
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5046-5061
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Martins de Souza
Author-X-Name-First: Rafael Martins
Author-X-Name-Last: de Souza
Author-Name: Luiz Felipe Pires Maciel
Author-X-Name-First: Luiz Felipe Pires
Author-X-Name-Last: Maciel
Author-Name: Adrian Pizzinga
Author-X-Name-First: Adrian
Author-X-Name-Last: Pizzinga
Title: State space models for the exchange rate pass-through: determinants and null/full pass-through hypotheses
Abstract:
In this article, we formulate linear
Gaussian state space models for the estimation of the exchange rate
pass-through of the Brazilian Real against the US Dollar, using monthly
data from August 1999 to August 2008. The state space/Kalman filtering
framework allows the investigation of some empirical aspects previously
suggested in the literature, such as time-varying coefficients and
null/full pass-through hypotheses. We also test whether some theoretical
'determinants' of the pass-through are statistically significant in the
period considered. The principal findings are as follows: (1) the data
offer strong support to a time-varying pass-through; and (2) the variance
of the exchange rate pass-through, the monetary policy and the trade flow
have shown to be relevant determinants of the exchange rate pass-through.
Journal: Applied Economics
Pages: 5062-5075
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.815397
File-URL: http://hdl.handle.net/10.1080/00036846.2013.815397
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5062-5075
Template-Type: ReDIF-Article 1.0
Author-Name: V. Coudert
Author-X-Name-First: V.
Author-X-Name-Last: Coudert
Author-Name: C. Couharde
Author-X-Name-First: C.
Author-X-Name-Last: Couharde
Author-Name: V. Mignon
Author-X-Name-First: V.
Author-X-Name-Last: Mignon
Title: Pegging emerging currencies in the face of dollar swings
Abstract:
The aim of this article is to study
ruptures of exchange rate pegs by focusing on the fluctuations of the
anchor currency. We test for the hypothesis that currencies linked to the
USD are more likely to loosen their peg when the USD is appreciating,
while sticking to it otherwise. To this end, we estimate smooth-transition
regression models for a sample of 28 emerging currencies over the
1994--2011 period. Our findings show that while the real effective
exchange rates of most of these countries tend to co-move with that of the
USD in times of depreciation, this relationship is frequently reversed
when the US currency appreciates over a certain threshold.
Journal: Applied Economics
Pages: 5076-5085
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.818215
File-URL: http://hdl.handle.net/10.1080/00036846.2013.818215
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5076-5085
Template-Type: ReDIF-Article 1.0
Author-Name: Olga Isengildina-Massa
Author-X-Name-First: Olga
Author-X-Name-Last: Isengildina-Massa
Author-Name: Berna Karali
Author-X-Name-First: Berna
Author-X-Name-Last: Karali
Author-Name: Scott H. Irwin
Author-X-Name-First: Scott H.
Author-X-Name-Last: Irwin
Title: When do the USDA forecasters make mistakes?
Abstract:
This study analysed forecasts for all US
corn, soya bean and wheat categories published within the World
Agricultural Supply and Demand Estimates (WASDE ) reports over the 1987/88
through 2009/10 marketing years in an attempt to identify patterns and
better understand when the USDA forecasters make mistakes. Two general
sources of errors were investigated: behavioural and macroeconomic
factors. The first objective was to examine how these factors affect the
size of the forecast error and the second concentrated on the direction of
the error due to these effects. Our findings suggest that the largest
increase in the size of USDA forecast errors was associated with
structural changes in commodity markets that took place in the mid-2000s.
Corn, soya bean and wheat forecast errors also grew during the periods of
economic growth and with changes in exchange rates, while inflation and
changes in oil price had a much smaller impact. With respect to
behavioural sources, we identified patterns consistent with leniency and
pessimism across different categories. Predictability of forecast errors
based on the information available at the time the forecasts are made
provides evidence of inefficiency and suggests that these forecasts may be
improved using the findings of this study.
Journal: Applied Economics
Pages: 5086-5103
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.818213
File-URL: http://hdl.handle.net/10.1080/00036846.2013.818213
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5086-5103
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas A. Jolly
Author-X-Name-First: Nicholas A.
Author-X-Name-Last: Jolly
Title: The impact of work-limiting disabilities on earnings and income mobility
Abstract:
This article uses the 1968--2007 waves of
the Panel Study of Income Dynamics (PSID) to examine how work-limiting
disabilities influence the intragenerational earnings and income mobility
of individuals. The results show that work-limiting disabilities increase
the probability of downward mobility for several years after onset.
Furthermore, the probability of being in the bottom portions of the
distributions increases significantly, not only during the year of onset
but also for at least 10 years afterwards. These results are more
pronounced for those individuals suffering from a disability that is more
chronic or severe in nature. Income from spousal earnings and government
transfer payments offers some protection against disability's adverse
effect, with more protection being provided to those who are more
chronically disabled.
Journal: Applied Economics
Pages: 5104-5118
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.818212
File-URL: http://hdl.handle.net/10.1080/00036846.2013.818212
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5104-5118
Template-Type: ReDIF-Article 1.0
Author-Name: Sonila M. Tomini
Author-X-Name-First: Sonila M.
Author-X-Name-Last: Tomini
Author-Name: Wim Groot
Author-X-Name-First: Wim
Author-X-Name-Last: Groot
Title: Paying informally for public health care in Albania: scarce resources or governance failure?
Abstract:
Informal payments for health care are
common in most former communist countries. This article explores the
demand side of these payments in Albania. Using tobit and Heckman
selection models we control for individual determinants of informal
payments in outpatient and inpatient health care. Propensity score
matching (PSM) techniques are used to investigate the changes in the
characteristics of people paying informally over the different years. Our
findings suggest that vulnerable groups in society remain less protected
against such payments and policy measures have not reached the most
deprived regions of the country.
Journal: Applied Economics
Pages: 5119-5130
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.818216
File-URL: http://hdl.handle.net/10.1080/00036846.2013.818216
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5119-5130
Template-Type: ReDIF-Article 1.0
Author-Name: Mari Kangasniemi
Author-X-Name-First: Mari
Author-X-Name-Last: Kangasniemi
Author-Name: Antti Kauhanen
Author-X-Name-First: Antti
Author-X-Name-Last: Kauhanen
Title: Performance-related pay and gender wage differences
Abstract:
We study the impact of performance-related
pay (PRP) on gender wage differences using Finnish-linked
employer--employee panel data. Controlling for unobserved person and firm
effects, we find that bonuses increase women's earnings slightly less than
men's, but the economic significance of the difference is negligible.
Piece rates and reward rates, however, tend to increase gender wage
differentials. Thus, the nature of a PRP plan is important for gauging the
impact of PRP on gender wage differentials. A comparison with OLS results
shows the importance of controlling for an unobserved person and firm
effects.
Journal: Applied Economics
Pages: 5131-5143
Issue: 36
Volume: 45
Year: 2013
Month: 12
X-DOI: 10.1080/00036846.2013.824546
File-URL: http://hdl.handle.net/10.1080/00036846.2013.824546
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Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5131-5143
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Hanafiah Harvey
Author-X-Name-First: Hanafiah
Author-X-Name-Last: Harvey
Author-Name: Scott W. Hegerty
Author-X-Name-First: Scott W.
Author-X-Name-Last: Hegerty
Title: Brazil--US commodity trade and the J-Curve
Abstract:
Currency devaluation or depreciation is
said to temporarily worsen a country's trade balance and improve it later,
an effect that is called the J-Curve. Previous research that tested the
J-Curve for Brazil used the country's aggregate trade flows with the rest
of the world and did not find support for the phenomenon. In this article,
we consider the trade flows between Brazil and a major trading partner,
the United States, disaggregating their trade flows by commodity. We then
test the empirical validity of the J-Curve for each of the 92 industries
that trade between the two countries. We find support for the phenomenon
in 31 industries. Therefore, disaggregation by industry seems to yield
some support for the phenomenon.
Journal: Applied Economics
Pages: 1-13
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.824548
File-URL: http://hdl.handle.net/10.1080/00036846.2013.824548
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:1-13
Template-Type: ReDIF-Article 1.0
Author-Name: Horst Feldmann
Author-X-Name-First: Horst
Author-X-Name-Last: Feldmann
Title: Venture capital availability and labour market performance around the world
Abstract:
This article studies the effects of
venture capital on the performance of the labour market. Using data from a
much larger sample of countries than previous papers, it finds more
readily available venture capital to favourably affect both the
unemployment and the employment rate. The magnitude of the estimated
effects is substantial. We control for both endogeneity of venture capital
availability and most major determinants of labour market performance. The
results are robust to variations in specification.
Journal: Applied Economics
Pages: 14-29
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.826874
File-URL: http://hdl.handle.net/10.1080/00036846.2013.826874
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Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Kelly Burns
Author-X-Name-First: Kelly
Author-X-Name-Last: Burns
Title: A reappraisal of the Meese--Rogoff puzzle
Abstract:
Several explanations have been put forward
for the Meese--Rogoff puzzle that exchange rate models cannot outperform
the random walk in out-of-sample forecasting. We suggest that a simple
explanation for the puzzle is the use of the root mean square error (RMSE)
to measure forecasting accuracy, presenting a rationale as to why it is
difficult to beat the random walk in terms of the RMSE. By using exactly
the same exchange rates, time periods and estimation methods as those of
Meese and Rogoff, we find that their results cannot be overturned even if
the models are estimated with time-varying coefficients. However, we also
find that the random walk can be outperformed by the same models if
forecasting accuracy is measured in terms of the ability to predict
direction, in terms of a measure that combines magnitude and direction and
in terms of profitability.
Journal: Applied Economics
Pages: 30-40
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.829202
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829202
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:30-40
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Samarina
Author-X-Name-First: Anna
Author-X-Name-Last: Samarina
Author-Name: Mirre Terpstra
Author-X-Name-First: Mirre
Author-X-Name-Last: Terpstra
Author-Name: Jakob De Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: De Haan
Title: Inflation targeting and inflation performance: a comparative analysis
Abstract:
This article examines how the impact of
inflation targeting on inflation performance depends on the choice of
country samples, adoption dates, time periods and methodological
approaches. We apply two different estimation methods --
difference-in-differences and propensity score matching -- for our sample
of 25 advanced and 59 emerging and developing countries over the period
1985 to 2011. Our findings suggest that distinguishing countries by
economic development is crucial, as no effect of inflation targeting is
found for advanced economies, whereas the results suggest a significant
negative effect of inflation targeting on inflation in emerging and
developing countries. The results are robust to the methodology used for
the analysis.
Journal: Applied Economics
Pages: 41-56
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.829205
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829205
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:41-56
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas T. Thøgersen
Author-X-Name-First: Thomas T.
Author-X-Name-Last: Thøgersen
Author-Name: Sean Pascoe
Author-X-Name-First: Sean
Author-X-Name-Last: Pascoe
Title: Combining performance measures to investigate capacity changes in fisheries
Abstract:
The Common Fisheries Policy (CFP) aims to
achieve a balance between the European fleet capacity and the resources
available. This can be realized either by temporarily reducing the fishing
effort (i.e. capacity utilization) or quotas in the hope of increasing the
resources available or reducing the actual fishing capacity. In both
cases, the relationship between effort indicators and capacity needs to be
resolved in order for the manager to introduce the right interventions.
Previous studies have estimated these relationships in multi-species
fisheries using either a multi-output distance function approach (DFA) or
with a second stage Data Envelopment Analysis (DEA). Both approaches have
advantages and disadvantages. In this article, DEA and DFA are combined to
reduce noise in the estimation and to establish more useful
interpretations for the manager. The article compares the traditional DFA
with the alternative approach for the Danish North Sea demersal trawlers.
The alternative approach improves the estimation results and provides
better estimates of efficiency scores, compared to the unadjusted DFA.
Furthermore, the analyses suggest that the demersal trawlers have a
limited ability to substitute catches of cod, plaice and Nephrops and that
gross tonnage is a more consistent indicator of fishing capacity than
engine power.
Journal: Applied Economics
Pages: 57-69
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.829203
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829203
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:57-69
Template-Type: ReDIF-Article 1.0
Author-Name: W. Maennig
Author-X-Name-First: W.
Author-X-Name-Last: Maennig
Author-Name: M. Steenbeck
Author-X-Name-First: M.
Author-X-Name-Last: Steenbeck
Author-Name: M. Wilhelm
Author-X-Name-First: M.
Author-X-Name-Last: Wilhelm
Title: Rhythms and cycles in happiness
Abstract:
This study analyses time-dependent rhythms
in happiness in three aspects. We show that the Sunday neurosis exists
exclusively for men with a medium level of education and both men and
women with high levels of education. Men with high levels of education may
even experience a weekend neurosis. This study is the first to test for
intra-monthly rhythms and to demonstrate that men with a lower educational
background may suffer from negative effects on happiness towards the end
of the month, potentially because of liquidity problems. The study is also
the first to demonstrate that happiness exhibits seasonal effects over the
annual period, depending on gender and education.
Journal: Applied Economics
Pages: 70-78
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.829206
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829206
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:70-78
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Berlemann
Author-X-Name-First: Michael
Author-X-Name-Last: Berlemann
Author-Name: Marco Oestmann
Author-X-Name-First: Marco
Author-X-Name-Last: Oestmann
Author-Name: Marcel Thum
Author-X-Name-First: Marcel
Author-X-Name-Last: Thum
Title: Demographic change and bank profitability: empirical evidence from German savings banks
Abstract:
Most European economies will experience
significant demographic changes in the decades ahead. Due to low birth
rates, populations are shrinking and ageing at the same time. This article
explores the impact of demographic change on the banking industry. A
unique data set, which contains detailed information on almost 2.5 million
accounts in 11 German savings banks, allows us estimating the
socio-demographic determinants of retail profitability. Using a simulation
model, we predict the development of bank profitability resulting from
demographic shifts through 2025. Our central finding is that the effects
of population ageing will partially offset the impact of shrinking
customer bases. While the decline in the size of the population reduces
the customer base, ageing increases profitability per se,
as older customers typically generate higher profits for their banks.
Journal: Applied Economics
Pages: 79-94
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.829262
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829262
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:79-94
Template-Type: ReDIF-Article 1.0
Author-Name: Y. Tsuchiya
Author-X-Name-First: Y.
Author-X-Name-Last: Tsuchiya
Title: A directional evaluation of corporate executives' exchange rate forecasts
Abstract:
We investigate the directional accuracy of
exchange rate forecasts by corporate executives. We find that a forecast
with a 1-year horizon is valuable for the profitability and
unprofitability predictions of manufacturers, although previous studies
provide considerable evidence that forecasts with horizons of 1 year and
longer are not valuable. However, a forecast is not valuable in predicting
an appreciation or depreciation of the exchange rate. Our findings suggest
that corporate executives are more concerned about and focused on the
impact of the exchange rate on their profitability, rather than the
exchange rate itself.
Journal: Applied Economics
Pages: 95-101
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.831173
File-URL: http://hdl.handle.net/10.1080/00036846.2013.831173
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:95-101
Template-Type: ReDIF-Article 1.0
Author-Name: J. Stevens
Author-X-Name-First: J.
Author-X-Name-Last: Stevens
Title: Identification problems in Granger causality tests based on the net oil price increase
Abstract:
The net oil price increase is one of the
most popular models used to study the relationship between changes in the
price of oil and macroeconomic activity. The model postulates that an
increase in the price of oil has negative consequences for the economy if
the new price exceeds the maximum price observed over a reference period
of arbitrary length. The relationship between the net oil price increase
and other economic variables is often evaluated with Granger causality
tests, the results of which are sensitive to the choice of the reference
period. If the reference price is chosen to best fit the data, it becomes
an unidentified nuisance parameter under the null hypothesis, causing
standard tests to over-reject the null. This article proposes a simple
method to obtain correct critical values. Using US data for the period
1954 to 2012, it is found that these corrected critical values reduce, but
do not eliminate support for the proposition that the net oil price
increase Granger causes real USGDP growth.
Journal: Applied Economics
Pages: 102-110
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.831170
File-URL: http://hdl.handle.net/10.1080/00036846.2013.831170
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:102-110
Template-Type: ReDIF-Article 1.0
Author-Name: Florin G. Maican
Author-X-Name-First: Florin G.
Author-X-Name-Last: Maican
Author-Name: Richard J. Sweeney
Author-X-Name-First: Richard J.
Author-X-Name-Last: Sweeney
Title: Costs of misspecification in break-model unit-root tests
Abstract:
This article examines power issues for the
ADF and four break models (Perron, 1989; Zivot and Andrews, 1992) when the
DGP corresponds to one of the break models. Choosing to test an incorrect
break model can, but need not, greatly reduce the probability of rejecting
the null. Break points that are relatively early in the sample period have
substantial effects of increasing power. For modest shifts in time trends,
simply including a time trend without shift in the model preserves power,
but not for large time-trend shifts.
Journal: Applied Economics
Pages: 111-118
Issue: 1
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.831171
File-URL: http://hdl.handle.net/10.1080/00036846.2013.831171
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Handle: RePEc:taf:applec:v:46:y:2014:i:1:p:111-118
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Cook
Author-X-Name-First: Steve
Author-X-Name-Last: Cook
Author-Name: Duncan Watson
Author-X-Name-First: Duncan
Author-X-Name-Last: Watson
Author-Name: Louise Parker
Author-X-Name-First: Louise
Author-X-Name-Last: Parker
Title: New evidence on the importance of gender and asymmetry in the crime--unemployment relationship
Abstract:
The literature examining the
crime--unemployment relationship is vast. Three recent developments in the
analysis of this relationship are combined with a novel empirical method
to explore the importance of gender effects and asymmetric adjustment when
analysing the impact of unemployment upon criminal activity. Using data
for the United States of America, a number of interesting results are
obtained. The key finding concerns the importance of gender, with
opportunity effects in criminal activity detected when considering female,
but not male, unemployment. Further examination shows findings to support
theories associated with 'victimization' and worsening socio-economic
conditions, rather than those emphasizing 'latchkey care' effects and an
absence of guardianship. Consideration of motivation effects provides
further evidence of significant asymmetries in the response of crime to
unemployment.
Journal: Applied Economics
Pages: 119-126
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.835481
File-URL: http://hdl.handle.net/10.1080/00036846.2013.835481
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:119-126
Template-Type: ReDIF-Article 1.0
Author-Name: D. J. Sanders
Author-X-Name-First: D. J.
Author-X-Name-Last: Sanders
Author-Name: J. V. Balagtas
Author-X-Name-First: J. V.
Author-X-Name-Last: Balagtas
Author-Name: G. Gruere
Author-X-Name-First: G.
Author-X-Name-Last: Gruere
Title: Revisiting the palm oil boom in South-East Asia: fuel versus food demand drivers
Abstract:
In the past 30 years, palm oil production
has increased ninefold, with almost all the growth occurring in Malaysia
and Indonesia. This growth has been associated with extensive
deforestation, with biofuels often named as the principal driver. However,
other drivers have been less examined; in particular, restrictions on
genetically modified food in Europe and on trans fats in many developed
countries have led food companies to switch to using palm oil in
production. This article uses a price analysis to examine the drivers of
palm oil production growth during the 1980--2010 boom. Soya bean oil is
used in the analysis as the leading vegetable oil, while crude oil
represents the energy market; the prices of these oils, along with palm
oil, are tested in vector autoregression (VAR) and vector error correction
models. The two models consistently find that palm oil prices do not
appear to respond to short-run fluctuations in crude oil prices. Rather,
they are a function of lagged palm oil prices and current and lagged soya
bean oil prices. Overall, the results indicate that while palm and soya
bean oil markets have a potentially significant relationship, the crude
oil market does not appear to have been an important driver of the palm
oil boom.
Journal: Applied Economics
Pages: 127-138
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.835479
File-URL: http://hdl.handle.net/10.1080/00036846.2013.835479
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:127-138
Template-Type: ReDIF-Article 1.0
Author-Name: Sophocles N. Brissimis
Author-X-Name-First: Sophocles N.
Author-X-Name-Last: Brissimis
Author-Name: Eugenie N. Garganas
Author-X-Name-First: Eugenie N.
Author-X-Name-Last: Garganas
Author-Name: Stephen G. Hall
Author-X-Name-First: Stephen G.
Author-X-Name-Last: Hall
Title: Consumer credit in an era of financial liberalization: an overreaction to repressed demand?
Abstract:
In this article, we empirically analyse
the factors which determined consumer credit in Greece in the period
before and after the financial liberalization, while accounting for
significant changes in structure due to the lifting of credit restrictions
and the subsequent impressive boom of consumer loans. We use multivariate
cointegration techniques to estimate a vector error correction model
(VECM) and identify separate demand and supply relationships for consumer
loans. We introduce demand and supply-related shifts in parameters through
the inclusion of appropriate dummy variables and trends in the long-run
relationships. We partly deviate from the typical Johansen procedure and
estimate the model in two steps. We find that the theoretical exclusion
and coefficient-size restrictions on the demand and supply cointegrating
vectors are valid. Our results are consistent with the operation of a bank
lending channel in Greece. We also find that the supply side was mostly
responsible for the acceleration of consumer loan growth following credit
liberalization.
Journal: Applied Economics
Pages: 139-152
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.835482
File-URL: http://hdl.handle.net/10.1080/00036846.2013.835482
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:139-152
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Brown
Author-X-Name-First: Heather
Author-X-Name-Last: Brown
Author-Name: Arne Risa Hole
Author-X-Name-First: Arne Risa
Author-X-Name-Last: Hole
Author-Name: Jennifer Roberts
Author-X-Name-First: Jennifer
Author-X-Name-Last: Roberts
Title: Going the same 'weigh': spousal correlations in obesity in the United Kingdom
Abstract:
The obesity epidemic has received
widespread media and research attention. However, the social phenomenon of
obesity is still not well understood. Data from the British Household
Panel Survey (BHPS) show positive and significant correlations in spousal
body mass index (BMI). This article explores the three
mechanisms of matching in the marriage market, social learning and shared
environment to explain this correlation. We apply a novel method of
testing for social learning by focusing on how the addition of individual
and partner health and marriage length affects the correlation in spousal
BMI. Results show the importance of matching in the
marriage market in explaining correlated BMI outcomes.
There is significant correlation in partner BMI even
after controlling for own health, spouse health, marriage length and
regional effects, suggesting evidence of a social influence. However, it
does not appear to be a learning effect as the spouse health and marriage
length are insignificant.
Journal: Applied Economics
Pages: 153-166
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.837575
File-URL: http://hdl.handle.net/10.1080/00036846.2013.837575
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:153-166
Template-Type: ReDIF-Article 1.0
Author-Name: Mardi Dungey
Author-X-Name-First: Mardi
Author-X-Name-Last: Dungey
Author-Name: Renee Fry-McKibbin
Author-X-Name-First: Renee
Author-X-Name-Last: Fry-McKibbin
Author-Name: Verity Linehan
Author-X-Name-First: Verity
Author-X-Name-Last: Linehan
Title: Chinese resource demand and the natural resource supplier
Abstract:
This article provides empirical evidence
on the effects of Chinese resource demand on the resource-rich natural
resource supplier using the example of Australia. A structural VAR model
is used to examine the effects of Chinese resource demand, commodity
prices and foreign output on the macroeconomy with a formally specified
mining and resource export sector. The key findings of the article are
that shocks to Chinese demand and commodity prices result in a sustained
increase in commodity prices and mining investment and a positive impact
on the resource sector. However, these shocks eventually lead to lower
real domestic output with factors of production moving out of the
nonresource sectors and into the resource sector, resulting in a fall in
nonresource sector output which is not fully offset by the rise in
resource sector output. The results also indicate some market power by the
natural resource supplier.
Journal: Applied Economics
Pages: 167-178
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.835483
File-URL: http://hdl.handle.net/10.1080/00036846.2013.835483
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:167-178
Template-Type: ReDIF-Article 1.0
Author-Name: Faiza Azhar Khan
Author-X-Name-First: Faiza Azhar
Author-X-Name-Last: Khan
Author-Name: John Hudson
Author-X-Name-First: John
Author-X-Name-Last: Hudson
Title: Initial human capital or the rule of law: what matters for the income convergence of poor countries?
Abstract:
The article analyses conditional
β-convergence among the low income countries using a
panel data framework covering the period 1960 to 2008. The estimation of
conditional income convergence is based on the augmented Solow model with
system GMM technique for the dynamic panel data. More importantly, the
article assesses the role of initial human capital stock and the rule of
law in the income convergence of poor countries by considering further
categorizations of the poor countries based on these two variables. This
is the first study on the comparative properties of human capital and the
rule of law in the income convergence of poor countries utilizing a
dynamic panel framework. The full sample of low income countries does not
show any evidence of conditional income convergence. The categorizations
on the basis of initial human capital stock do not alter the conclusion of
no income convergence. However, the subsample of low income countries with
a better rule of law exhibits positive evidence of convergence towards the
steady states. The article concludes that there exists a greater role of
the rule of law, than initial human capital stock, in the income
convergence of poor countries and vice versa for the high and middle
income countries.
Journal: Applied Economics
Pages: 179-189
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.831172
File-URL: http://hdl.handle.net/10.1080/00036846.2013.831172
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:179-189
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Holton
Author-X-Name-First: Sarah
Author-X-Name-Last: Holton
Author-Name: Martina Lawless
Author-X-Name-First: Martina
Author-X-Name-Last: Lawless
Author-Name: Fergal McCann
Author-X-Name-First: Fergal
Author-X-Name-Last: McCann
Title: Firm credit in the euro area: a tale of three crises
Abstract:
Using survey data from 2009 to 2011, we
analyse the effects of the recent euro area economic, financial and
private debt crisis on the supply of and demand for bank finance for small
and medium enterprises (SMEs). At the country level, we identify three
distinct aspects of the recent crisis in the euro area affecting firm
credit through different channels. Controlling for country fixed effects,
the impact of a weak real economy on firm credit operates both by reducing
firms' demand for bank financing and by lenders increasing loan rejections
and tightening terms and conditions on credit allocated. On the other
hand, financial conditions have no significant effect on demand, but they
do affect credit supply as we find that financial tensions worsen the
chances of obtaining credit and its terms and conditions. We interpret
this as evidence of a bank balance sheet channel negatively impacting
credit provision. We find that private sector indebtedness has important
effects on SMEs' credit access and its terms and conditions.
Journal: Applied Economics
Pages: 190-211
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.824547
File-URL: http://hdl.handle.net/10.1080/00036846.2013.824547
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:190-211
Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Duarte
Author-X-Name-First: Rosa
Author-X-Name-Last: Duarte
Author-Name: Vicente Pinilla
Author-X-Name-First: Vicente
Author-X-Name-Last: Pinilla
Author-Name: Ana Serrano
Author-X-Name-First: Ana
Author-X-Name-Last: Serrano
Title: Looking backward to look forward: water use and economic growth from a long-term perspective
Abstract:
Recent research has examined the
relationship between natural resources and economic growth. Considered
vitally important, not only for humanity's well-being but also for the
integrity of the ecosystem, the relationship between water use and
economic growth has nevertheless traditionally attracted little attention
by analysts. This article studies water use trends from 1900 to 2000
throughout the world and their relationship to the main determinants of
economic growth. To do this, we first analyse water use trajectories.
Second, to proceed with the determinants of water use, we reformulate the
Ehrlich and Holdren's impact, population, affluence, technology (IPAT)
equation (1971), decomposing water use trends into changes in economic
demands and in water use intensity on the basis of a decomposition
analysis. Finally, a simple scenario analysis is conducted, to project
future water use trends under different economic, demographic and
technological assumptions. The empirical evidence shows that economic
and population growth have been crucial in explaining the increase in
water use over the past 100 years, with significant regional differences.
Nevertheless, the decline in water use intensity has been responsible for
a significant reduction in the growth of total water use.
Journal: Applied Economics
Pages: 212-224
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.844329
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844329
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:212-224
Template-Type: ReDIF-Article 1.0
Author-Name: H鲩court
Author-X-Name-First:
Author-X-Name-Last: H鲩court
Author-Name: Spielvogel
Author-X-Name-First:
Author-X-Name-Last: Spielvogel
Title: Beliefs, media exposure and policy preferences on immigration: evidence from Europe
Abstract:
This article studies the joint
determination of beliefs about the economic impact of immigration and
immigration policy preferences, using data from the five rounds of the
European Social Survey (2002--2010). In addition to standard
socio-economic characteristics, this analysis takes individual media
consumption into account, as a determinant of opinion about immigration.
Our results stress the important role of the endogenous determination of
beliefs, which appears as a major determinant of policy preferences.
Moreover, media exposure appears as a key determinant of beliefs:
individuals who spend more time to get informed on social and political
matters through newspapers and radio have a better opinion on the economic
impact of immigration compared with individuals who devote time to other
types of content.
Journal: Applied Economics
Pages: 225-239
Issue: 2
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.844330
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844330
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Handle: RePEc:taf:applec:v:46:y:2014:i:2:p:225-239
Template-Type: ReDIF-Article 1.0
Author-Name: Asma Mobarek
Author-X-Name-First: Asma
Author-X-Name-Last: Mobarek
Author-Name: Alovaddin Kalonov
Author-X-Name-First: Alovaddin
Author-X-Name-Last: Kalonov
Title: Comparative performance analysis between conventional and Islamic banks: empirical evidence from OIC countries
Abstract:
This article investigates the performance of Islamic (IBs) versus
conventional banks (CBs) around the recent financial crisis in 18 OIC
(Organization of Islamic Conference) countries. The study primarily
employs two dominant frontier approaches of efficiency measurement in
banking literature. The study also estimates the soundness score of the
banks by using Z-score methodology and attempts to explore the
relationship between efficiency and financial stability of banks. The
results based on the data envelopment analysis (DEA) and stochastic
frontier analysis (SFA) approaches report that CBs are more efficient than
their Islamic counterparts. On the contrary, Z-score reports that IBs were
financially more stable than CBs. However, the dominance of IBs has been
drastically lost afterwards. This might be originated by the decrease of
Z-score of IBs in Bahrain, Kuwait and UAE, which were found as main
front-runners among IBs in terms of financial stability. To the best of
authors' knowledge, it is the first study that examines the efficiency of
IBs versus CBs using two different frontier efficiency analyses and
collates the result of frontier efficiency methods with stability
indicator. The practical implication of the findings for IBs is to explore
additional investment opportunity and for CBs is to uphold more financial
stability.
Journal: Applied Economics
Pages: 253-270
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.839863
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839863
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:253-270
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Breunig
Author-X-Name-First: Robert
Author-X-Name-Last: Breunig
Author-Name: Bronwyn Garrett-Rumba
Author-X-Name-First: Bronwyn
Author-X-Name-Last: Garrett-Rumba
Author-Name: Mathieu Jardin
Author-X-Name-First: Mathieu
Author-X-Name-Last: Jardin
Author-Name: Yvon Rocaboy
Author-X-Name-First: Yvon
Author-X-Name-Last: Rocaboy
Title: Wage dispersion and team performance: a theoretical model and evidence from baseball
Abstract:
We develop a general theoretical model of the effect of wage dispersion on
team performance which nests two possibilities: wage inequality may have
either negative or positive effects on team performance. A parameter which
captures the marginal cost of effort, which we estimate using game-level
data from Major League Baseball, determines whether wage dispersion and
team performance are negatively or positively related. We find low
marginal cost of effort; consequently, wage disparity is negatively
related to team performance. Game and season-level regressions also
indicate a negative relationship between inequality and performance. We
discuss a variety of interpretations of our results.
Journal: Applied Economics
Pages: 271-281
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.839864
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839864
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:271-281
Template-Type: ReDIF-Article 1.0
Author-Name: Lena Dr䧥r
Author-X-Name-First: Lena
Author-X-Name-Last: Dr䧥r
Author-Name: Jan-Oliver Menz
Author-X-Name-First: Jan-Oliver
Author-X-Name-Last: Menz
Author-Name: Ulrich Fritsche
Author-X-Name-First: Ulrich
Author-X-Name-Last: Fritsche
Title: Perceived inflation under loss aversion
Abstract:
Building on prospect theory, we apply the concept of loss aversion to the
formation of inflation perceptions and test empirically for nonlinearities
in the inflation-perceptions relation for a panel of 10 Euro area
countries. Specifically, under the assumption of loss aversion, inflation
changes above a certain reference rate will be perceived more strongly.
Rejecting rationality of inflation perceptions in general under symmetric
loss and in a majority of cases under flexible loss functions, panel
smooth transition models give evidence of nonlinearities in the
inflation-perceptions relation regarding both actual inflation and time.
This result is confirmed by dynamic fixed effects estimates, where the
slope of the estimated value function is significantly steeper in the loss
region and the implied average reference inflation rate is found close to
2%.
Journal: Applied Economics
Pages: 282-293
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.844328
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844328
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:282-293
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner
Author-X-Name-First: Joachim
Author-X-Name-Last: Wagner
Title: Credit constraints and exports: evidence for German manufacturing enterprises
Abstract:
This study uses newly available enterprise-level data for firms from
manufacturing industries in Germany to test for the link between credit
constraints, measured by a credit-rating score from the leading
credit-rating agency Creditreform, and exports. In line with hypotheses
from a theoretical model, we find a positive link between a better
credit-rating score of a firm and both the probability that the firm is an
exporter and a higher share of exports in total sales. This link, though
statistically highly significant, is not very strong from an economic
point of view. While empirical evidence for the hypothesis that
credit-constrained firms are less likely to start to export is, at best,
weak, we find no evidence for a statistically significant difference in
credit-rating scores between firms that stopped to export and firms that
continued to export.
Journal: Applied Economics
Pages: 294-302
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.839866
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839866
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:294-302
Template-Type: ReDIF-Article 1.0
Author-Name: Hirokazu Mizobata
Author-X-Name-First: Hirokazu
Author-X-Name-Last: Mizobata
Title: What determines the Japanese firm investments: real or financial?
Abstract:
In this article, I test both the real and the financial frictions in the
Japanese firm investments using structural approach. The real represents
the nonconvex capital adjustment costs, and the financial means the
financing constraints. These two factors have been studied for a long
time, but rarely analysed simultaneously. Through this analysis, I find
the following results. First, both these two factors affect Japanese firm
investments. Second, convex adjustment costs parameter is estimated at a
very small level. Third, this small convex adjustment costs lead to the
model introduced in Wang and Wen (2012), which insists that the firm
investments are determined by the upper bound of the borrowing
constraints.
Journal: Applied Economics
Pages: 303-311
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.839867
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839867
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:303-311
Template-Type: ReDIF-Article 1.0
Author-Name: Tai-Yi Yu
Author-X-Name-First: Tai-Yi
Author-X-Name-Last: Yu
Title: An empirical study of collaborative partnering among enterprises and government organizations for information system outsourcing
Abstract:
Most researches on information systems (IS) outsourcing indicate that
public sector decides to outsource information technology (IT) services
due to the belief that private vendors offer more cost advantages. This
research explores government sectors of outsourcing and focus on the role
of relationship for IS-service providers. Quantitative data of 126
questionnaires and 30 IS demonstrate that trust, mutual dependence,
equipment investment and information sharing are contributing factors to
successful outsourcing long-term partnerships. Information sharing between
the service receiver and provider is also vital in terms of equipment
investment in long-term partnerships, and is affected by the level of
trust that each party holds for the other within the outsourcing process.
Conceptual model is useful in explicating important government-business
partnering strategies - the model highlights not only the economic
benefits that the IS-outsourcing relationship brings based on social
exchange theory characteristics, but also suggests many additional
relevant elements.
Journal: Applied Economics
Pages: 312-322
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.844332
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844332
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:312-322
Template-Type: ReDIF-Article 1.0
Author-Name: Bijou Yang
Author-X-Name-First: Bijou
Author-X-Name-Last: Yang
Author-Name: David Lester
Author-X-Name-First: David
Author-X-Name-Last: Lester
Title: A subcultural study of credit card debt and foreclosures
Abstract:
This study explored predictors of credit card debt and foreclosure rates
in the states of the USA, based on the average personality scores of the
residents of the states obtained from an Internet questionnaire completed
by 619 397 residents (Rentfrow et al., 2008). It was
found that states whose residents had higher credit card debt in the year
2000 had residents who scored higher in openness and lower in
agreeableness. States with higher foreclosure rates in 2007 had residents
who scored higher in openness and also had lower average intelligence test
scores. The results were used to argue for a subcultural approach for
ecological studies of economic behaviour.
Journal: Applied Economics
Pages: 323-328
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.839865
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839865
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:323-328
Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Fendel
Author-X-Name-First: Ralf
Author-X-Name-Last: Fendel
Author-Name: Jan-Christoph Ruelke
Author-X-Name-First: Jan-Christoph
Author-X-Name-Last: Ruelke
Title: Expectations and the quantity equation - evidence from Eastern European countries
Abstract:
This article analyses the usefulness of the quantity equation from the
financial market's view. We use more than 10 000 forecasts of financial
analysts concerning projections of the growth rate of money supply, prices
and real output for six Central and Eastern European countries to test
whether they are internally consistent with the quantity equation. In
particular, we report that forecasts are consistent with the quantity
equation in high-inflation countries and high-inflation regimes.
Journal: Applied Economics
Pages: 329-335
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.839862
File-URL: http://hdl.handle.net/10.1080/00036846.2013.839862
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:329-335
Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Caselli
Author-X-Name-First: Mauro
Author-X-Name-Last: Caselli
Title: Trade, skill-biased technical change and wages in Mexican manufacturing
Abstract:
This article looks at the relative importance of competing stories,
particularly trade liberalization and skill-biased technical change, to
explain changes in the skill premium and the real wages of unskilled and
skilled workers in Mexican manufacturing using plant-level data. The
channel through which technical change is observed is changes in the
domestic price of machinery and equipment due to the availability of new
and cheaper machines. The analysis also looks at trade-induced
skill-biased technical change by taking into account changes in the price
of machinery and equipment caused by changes in the tariff rate specific
to machinery and equipment. Instrumental variables, including the price of
machinery and equipment in the United States, are used to determine
causality between the above effects and wages. Thus, the article provides
evidence for some recent findings in the literature that link trade
liberalization, skill-biased technical change occurring through technology
embodied in machines and increases in the skill premium.
Journal: Applied Economics
Pages: 336-348
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.848033
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848033
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:336-348
Template-Type: ReDIF-Article 1.0
Author-Name: Ant Afonso
Author-X-Name-First: Ant
Author-X-Name-Last: Afonso
Author-Name: João Tovar Jalles
Author-X-Name-First: João Tovar
Author-X-Name-Last: Jalles
Title: Fiscal composition and long-term growth
Abstract:
We assess the fiscal composition-growth nexus, using a large country
panel, accounting for the usually encountered econometric pitfalls. Our
results show that revenues have no significant impact on growth whereas
expenditures have negative effects. The same is true for the OECD with the
addition that government revenue has a negative impact on growth. From our
results, taxes on income are less for growth enhancing, as well as public
wages, interest payments, subsidies and government consumption, while
spending on education and health boosts growth.
Journal: Applied Economics
Pages: 349-358
Issue: 3
Volume: 46
Year: 2014
Month: 1
X-DOI: 10.1080/00036846.2013.848030
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848030
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Handle: RePEc:taf:applec:v:46:y:2014:i:3:p:349-358
Template-Type: ReDIF-Article 1.0
Author-Name: John Thornton
Author-X-Name-First: John
Author-X-Name-Last: Thornton
Title: Does foreign aid reduce tax revenue? Further evidence
Abstract:
A common criticism of foreign aid is that
it reduces domestic tax effort. Empirical research on the issue has been
hampered by the failure to tackle endogeneity issues effectively. We use
measures of geographical and cultural distance to donor countries as
instrumental variables to uncover the causal effect of aid on tax revenue
in a panel of 93 countries. The tax to GDP ratio is found to decrease
following aid inflows. This reduction in tax effort is statistically and
economically significant; a one SD increase in aid causes a 0.52
percentage point drop in the tax-to-GDP ratio. The results indicate that
the effect is driven by unconditional grants, whereas aid given as loans
induces recipient governments to improve their tax effort. Our results are
robust to changes in the sample and the use of a nearest neighbour
matching technique to account for nonrandom assignment of aid. Our
identification strategy is sharpened by the use of a
difference-in-difference estimation strategy that leverages a natural
experiment in which aid flows exogenously increased for some countries
following the Iranian Revolution in 1979.
Journal: Applied Economics
Pages: 359-373
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.829207
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829207
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:359-373
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Gazi Salah Uddin
Author-X-Name-First: Gazi Salah
Author-X-Name-Last: Uddin
Title: On the causal nexus of remittances and poverty reduction in Bangladesh
Abstract:
The aim of this article is to investigate
the causal relationship between remittances and poverty reduction in
Bangladesh over the period 1976 to 2010. This issue is of fundamental
importance for the developing economy of Bangladesh. We apply newly
developed methods by Hacker and Hatemi-J (2006, 2012) that are based on
simulations and are robust to the violation of statistical assumptions
especially when the sample size is small, as is the case in this article.
Our estimation results reveal that causality nexus of poverty and
remittances is bi-directional. We also find that the causal impact of
poverty reduction on remittance is stronger than the reverse impact. This
finding implies that Bangladeshi policy-makers can influence remittances
through poverty reduction in the long run.
Journal: Applied Economics
Pages: 374-382
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.844331
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844331
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:374-382
Template-Type: ReDIF-Article 1.0
Author-Name: W. Jos Jansen
Author-X-Name-First: W.
Author-X-Name-Last: Jos Jansen
Author-Name: Ad C. J. Stokman
Author-X-Name-First: Ad C. J.
Author-X-Name-Last: Stokman
Title: International business cycle co-movement: the role of FDI
Abstract:
This article investigates the relationship
between FDI and business cycle synchronization in the period 1982 to 2011
for eight industrialized countries. We find that more synchronized
business cycles are associated with stronger FDI relations in the period
1995 to 2011, but not before 1995. More intensive FDI links are also
associated with a greater vulnerability to lagged output spillovers from
abroad. Our findings suggest that FDI has become a separate channel
through which economies may affect each other and that FDI stocks are now
an essential aspect of economic interdependence.
Journal: Applied Economics
Pages: 383-393
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.844327
File-URL: http://hdl.handle.net/10.1080/00036846.2013.844327
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:383-393
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale
Author-X-Name-First: Tony
Author-X-Name-Last: Caporale
Title: Explaining peak inflation rates prior to disinflationary policy adjustments or what got us into this mess?
Abstract:
This study investigates, using annual data
from 1974--2004, whether unionization rates, trade openness and central
bank independence can help explain cross-national and inter-temporal
variations in level of peak inflation prior to a disinflationary policy
adjustment. I find that unionization is positively associated with both
peak inflation rates whereas more independent central banks and trade
openness are correlated with lower inflation levels. These results are
robust to controlling for the high inflation decade of the 1970s and to
using average (rather than peak) inflation as the explanatory variable.
Journal: Applied Economics
Pages: 394-399
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.848032
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848032
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:394-399
Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chun Chang
Author-X-Name-First: Shu-Chun
Author-X-Name-Last: Chang
Title: Implication for cities of the liberalizing national economies in twenty-first century
Abstract:
For cities, the liberalization of national
economies and the creation of a global economy have profound and
far-reaching implications: global capitalist restructuring has been a key
force in reshaping cities during the late1980s, 1990s and 2000s; it has
demanded the production and use of new information technologies and in
doing so, has forged new relationships among new technologies and new
spatial forms and processes in cities. Technological innovation and
territorial restructuring have also deeply modified cities' emerging
socio-economic systems. At the centre of change are the three major global
cities -- New York, Tokyo and London (Sassen, 1993). Other cities that
have been affected by the liberalization and creation of a global economy
are found mainly in newly industrializing Asian countries such as Seoul,
Singapore and Hong Kong. Bombay, Mexico City and cities in South America
are among countries in the developing world that have experienced some
change in their economies in response to changing world conditions, but
are still constrained by protectionist policies. Among these changes,
therefore, this study will focus on structural change occurring in cities
in the developed countries, particularly New York, London and Tokyo.
Journal: Applied Economics
Pages: 400-407
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.848029
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848029
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:400-407
Template-Type: ReDIF-Article 1.0
Author-Name: Louren篠S. Paz
Author-X-Name-First: Louren篠S.
Author-X-Name-Last: Paz
Title: Trade liberalization and the inter-industry wage premia: the missing role of productivity
Abstract:
The literature concerning the effect of
tariffs on the inter-industry wage premium has not addressed the role of
total factor productivity (TFP) in determining both the wage premium and
tariffs. This omission not only overlooks an important determinant of wage
premium but also invalidates the use of the pre-reform tariff level as an
instrument for the change in tariffs. Based on an analysis of Colombian
data, I find that including TFP in the estimated model of the effects of
tariffs on the wage premium leads to a 41% decrease in the effect of
tariffs on the inter-industry wage premium relative to the model that
omits TFP. More specifically, a 10 percentage point decrease in tariffs
reduces the wage premium by 1.01%, whereas a 10% increase in TFP raise
wage premium by 1.6%. This finding suggests the importance of using
policies that boost productivity to offset the effect of tariffs on the
wage premium.
Journal: Applied Economics
Pages: 408-419
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.848031
File-URL: http://hdl.handle.net/10.1080/00036846.2013.848031
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:408-419
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-pierre Fenech
Author-X-Name-First: Jean-pierre
Author-X-Name-Last: Fenech
Author-Name: Hamed Vosgha
Author-X-Name-First: Hamed
Author-X-Name-Last: Vosgha
Author-Name: Salwa Shafik
Author-X-Name-First: Salwa
Author-X-Name-Last: Shafik
Title: Modelling the dependence structures of Australian iTraxx CDS index
Abstract:
In contrast to market expectations, the
correlation between credit default swap (CDS) spreads and their respective
stock prices in Australia was found to be positive. The global financial
crisis (GFC) affected the nonlinear association between the two asset
classes with firms experiencing financial distress and stock prices
plummeting. CDSs issuers reacted to such exogenous shocks by increasing
their risk premiums on their spreads, reflecting the increased inherent
risk. By splitting the data into pre- and post-GFC contexts and by
employing the use of Archimedean copulas, we observe a negative
co-movement in the post-GFC period. This finding is robust to several
equity indices. Overall, such result is critical for investors engaging in
arbitrageur activities.
Journal: Applied Economics
Pages: 420-431
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.849378
File-URL: http://hdl.handle.net/10.1080/00036846.2013.849378
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:420-431
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian R. Fleissig
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Fleissig
Author-Name: Gerald A. Whitney
Author-X-Name-First: Gerald A.
Author-X-Name-Last: Whitney
Title: Estimating demand elasticities under rationing
Abstract:
Eliminating rationing in the United
Kingdom following the Second World War was a concern for policy-makers
because of potentially large fluctuations in post-war prices and the
impact on unrationed goods. This study shows that in using virtual prices,
elasticities can be estimated from a 'free' demand system consistent with
observed consumer choices. Substitution estimates without accounting for
rationing are misleading. In contrast, using virtual prices and estimating
a 'free' market system yield results similar to those of the pre-war
period. Results show that food rationing affected expenditure across
unrationed goods. Rationing on other services had little effect on
expenditure across unrationed goods.
Journal: Applied Economics
Pages: 432-440
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.849379
File-URL: http://hdl.handle.net/10.1080/00036846.2013.849379
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:432-440
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Bajo-Rubio
Author-X-Name-First: Oscar
Author-X-Name-Last: Bajo-Rubio
Author-Name: Carmen D𮠭Roldᮠ
Author-X-Name-First: Carmen
Author-X-Name-Last: D𮠭Roldᮠ
Author-Name: Esteve
Author-X-Name-First:
Author-X-Name-Last: Esteve
Title: Sustainability of external imbalances in the OECD countries
Abstract:
In this article, we provide a test of the
sustainability of external imbalances in the OECD countries over the
period 1970 to 2007, i.e., before the beginning of the international
financial crisis. Specifically, we deal with the case of those countries
that have experienced current account deficits in more than half of the
years throughout the period of analysis, and address the recent critique
of Bohn (2007) on unit root and cointegration tests of the intertemporal
budget constraint.
Journal: Applied Economics
Pages: 441-449
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.851779
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851779
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:441-449
Template-Type: ReDIF-Article 1.0
Author-Name: Roman Horvath
Author-X-Name-First: Roman
Author-X-Name-Last: Horvath
Author-Name: Marek Rusnak
Author-X-Name-First: Marek
Author-X-Name-Last: Rusnak
Author-Name: Katerina Smidkova
Author-X-Name-First: Katerina
Author-X-Name-Last: Smidkova
Author-Name: Jan Zapal
Author-X-Name-First: Jan
Author-X-Name-Last: Zapal
Title: The dissent voting behaviour of central bankers: what do we really know?
Abstract:
We examine the determinants of the dissent
in central bank boards voting records about monetary policy rates in the
Czech Republic, Hungary, Sweden, the UK and the US. In contrast to
previous studies, we consider 25 different macroeconomic, financial,
institutional, psychological or preference-related factors jointly and use
Bayesian model averaging (BMA) to formally assess the attendant model
uncertainty. We find that the rate of dissent is between 5% and 20% for
the examined central banks. Our results suggest that most of the examined
regressors, including factors that capture the effects of inflation and
output, are not robust determinants of voting dissent. This result
suggests that unobserved characteristics of central bankers and different
communication strategies drive the dissent, rather than the level of
macroeconomic uncertainty.
Journal: Applied Economics
Pages: 450-461
Issue: 4
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.851775
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851775
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Handle: RePEc:taf:applec:v:46:y:2014:i:4:p:450-461
Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Title: Editorial
Journal: Applied Economics
Pages: 463-464
Issue: 5
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.860784
File-URL: http://hdl.handle.net/10.1080/00036846.2013.860784
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Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:463-464
Template-Type: ReDIF-Article 1.0
Author-Name: George Deltas
Author-X-Name-First: George
Author-X-Name-Last: Deltas
Author-Name: Donna Ramirez Harrington
Author-X-Name-First: Donna Ramirez
Author-X-Name-Last: Harrington
Author-Name: Madhu Khanna
Author-X-Name-First: Madhu
Author-X-Name-Last: Khanna
Title: Green management and the nature of pollution prevention innovation
Abstract:
Management systems have a strong impact on
the level of innovation and on production operations. Understanding this
impact sheds light on how firms function. This article examines the
relationship between a firm's approach to environmental management and the
nature of the pollution prevention activities or practices that it
undertakes. We differentiate pollution prevention activities according to
(i) four functional characteristics and (ii) visibility to consumers. We
find that the application of the total quality management (TQM) approaches
on pollution prevention has a stronger effect for practices that involve
procedural changes or are of a customized nature. These are indeed the
type of practices where one would expect TQM to have a disproportionate
impact in decision-making effectiveness. There seems to be no
corresponding effect on the adoption of practices that are visible to
consumers. Our results corroborate the notion that a well-designed
management system can help stimulate innovation, but only for specific
types. They also help identify the types of firms that are more likely to
benefit from adoption of TQM principles.
Journal: Applied Economics
Pages: 465-482
Issue: 5
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.857004
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857004
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Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:465-482
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy P. Hubbard
Author-X-Name-First: Timothy P.
Author-X-Name-Last: Hubbard
Title: Trade and transboundary pollution: quantifying the effects of trade liberalization on CO2 emissions
Abstract:
I consider a multi-country trade model in
which a subset of firms emit transboundary pollution as a by-product of
production. Consumers are harmed by these emissions, creating a role for
government intervention. Theoretically, the effects of trade
liberalization on the level of pollution and aggregate welfare are
ambiguous -- they depend on values of country-specific pollution
disutility parameters. I use real-world data to estimate trade costs and
to recover values for these disutility parameters that are consistent with
the Nash--Walras equilibrium predicted by the model. In counterfactual
exercises, I investigate the effects of changing trade costs on the
aggregate level and distribution of pollution as well as the welfare of
each country. These experiments suggest concern regarding the effect
further trade liberalization has on the level of firm-generated pollution
and that agreements like the Kyoto Protocol can be effective even when
governments behave strategically.
Journal: Applied Economics
Pages: 483-502
Issue: 5
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.857000
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857000
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:483-502
Template-Type: ReDIF-Article 1.0
Author-Name: Felix Groba
Author-X-Name-First: Felix
Author-X-Name-Last: Groba
Title: Determinants of trade with solar energy technology components: evidence on the porter hypothesis?
Abstract:
Studies analysing renewable energy (RE)
market development usually investigate electricity capacity or investment.
Characteristics, roles and determinants of trade with RE system components
remain blurred. Policies are important in promoting RE utilization and
innovation. Yet, their effect on determining exports remains ambiguous.
The Porter hypothesis and the lead-market literature argue that
environmental regulation leads to comparative export advantages. Empirical
studies, however, reach diverging conclusions, rarely focus on the
RE-sector and use broad proxies of environmental regulation.Focusing on
solar energy technology components (SETCs), we believe this is the first
study describing structure and development of international trade and
estimating the role of RE policies on determining trade flows. We
empirically estimate a gravity trade model using
Poisson-Pseudo-Maximum-Likelihood (PPML) estimation to test the role of RE
policies and trade barriers on SETC exports. We use panel data
representing annual bilateral trade flows of 21 OECD countries exporting
SETCs to 118 importing countries between 1999 and 2007.We find a rapidly
growing market with trade dominated by Europe. The study supports the
Porter and the lead-market hypotheses as early adopters of RE policies
gained a comparative advantage. Analysing the importer side, the study
suggests that regulatory policies and import tariffs determine SETC export
flows.
Journal: Applied Economics
Pages: 503-526
Issue: 5
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.857005
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857005
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:503-526
Template-Type: ReDIF-Article 1.0
Author-Name: Chintamani Jog
Author-X-Name-First: Chintamani
Author-X-Name-Last: Jog
Author-Name: Georgia Kosmopoulou
Author-X-Name-First: Georgia
Author-X-Name-Last: Kosmopoulou
Title: Experimental evidence on the performance of emission trading schemes in the presence of an active secondary market
Abstract:
As auction based emission trading schemes
(ETS) become more common in addressing climate change, it is of interest
to study the effects of bargaining power in resale markets on original as
well as post-resale allowance allocations in terms of prices and
efficiency. This article provides an experimental study of first price
private value asymmetric auctions followed by a
-double auction resale market opportunity. We compare
the
-double auction to other resale regimes with an uneven
distribution of market power and contrast initial bids, resale prices and
efficiency. Despite the conventional wisdom that full efficiency requires
the absence of market power, we find that
-double auction resale markets lead to lower efficiency
than the monopsony resale regime. The level of efficiency achieved,
however, is close to the highest across mechanisms that have differential
bargaining power at the resale stage.
Journal: Applied Economics
Pages: 527-538
Issue: 5
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.857128
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857128
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Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:527-538
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Porcher
Author-X-Name-First: Simon
Author-X-Name-Last: Porcher
Title: Efficiency and equity in two-part tariffs: the case of residential water rates
Abstract:
As first noticed by Coase (1946), a
standard result in utility regulation is that efficiency requires two-part
tariffs with marginal prices set to marginal costs and fixed fees equal to
each customer' s share of fixed costs. Residential water customers in
France face marginal prices for water that average about 8% more than
marginal costs. Under price elasticity estimates that are consistent with
previous results in the literature, efficiency costs represent around 8
million euros of welfare losses for 2008. Even though the impact is fairly
small, current price schedules are an important pre-existing distortion
which should be considered when evaluating current taxes aimed at
addressing external costs. Moreover, efficiency gains from reformed
tariffs could be used to fund water assistance programs focused on
financially stressed households.
Journal: Applied Economics
Pages: 539-555
Issue: 5
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.857001
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857001
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:539-555
Template-Type: ReDIF-Article 1.0
Author-Name: Aude Le Lannier
Author-X-Name-First: Aude Le
Author-X-Name-Last: Lannier
Author-Name: Simon Porcher
Author-X-Name-First: Simon
Author-X-Name-Last: Porcher
Title: Efficiency in the public and private French water utilities: prospects for benchmarking
Abstract:
This article uses a data envelopment
analysis (DEA) and a stochastic frontier analysis (SFA) to assess the
relative technical efficiency of 177 decision-making units in the French
water supply sector in 2009. Water utilities can be directly managed by
the local authorities or contracted out and then managed by a private
operator. The use of a three-stage model mixing DEA and SFA enables us to
dissociate managerial inefficiencies from the structural inefficiencies
and statistical noise. After having taken the environmental variables into
account, we find that private management are on average slightly less
efficient than public management. An explanation to this performance gap
can be different resource management.
Journal: Applied Economics
Pages: 556-572
Issue: 5
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.857002
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857002
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Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:556-572
Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Rachel A. J. Pownall
Author-X-Name-First: Rachel A. J.
Author-X-Name-Last: Pownall
Title: Going green: does it depend on education, gender or income?
Abstract:
Sustainable development entails meeting
our present needs without compromising the ability of future generations
to meet their needs. This requires us to treat economic, social and
environmental aspects in an integrated way, but little is known about the
nature of individual preferences towards the trade-offs involved in this
effort. For the first time, we study individual preferences towards the
environment, social well-being and financial well-being by using a survey
of over 1400 households in the Netherlands. Using nonparametric,
parametric and matching methods, we find that gender and education are
important factors for sustainability rather than income levels. Moreover,
results indicate that educated females put the greatest value on going
green whilst being socially minded.
Journal: Applied Economics
Pages: 573-586
Issue: 5
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.857003
File-URL: http://hdl.handle.net/10.1080/00036846.2013.857003
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:5:p:573-586
Template-Type: ReDIF-Article 1.0
Author-Name: Vladimir Borgy
Author-X-Name-First: Vladimir
Author-X-Name-Last: Borgy
Author-Name: Carine Bouthevillain
Author-X-Name-First: Carine
Author-X-Name-Last: Bouthevillain
Author-Name: Claude Diebolt
Author-X-Name-First: Claude
Author-X-Name-Last: Diebolt
Author-Name: Gilles Dufr鮯t
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufr鮯t
Title: New tools to assess fiscal and financial vulnerabilities in advanced economies
Abstract:
This introduction presents a selection of
articles dealing with the issue of measuring the fiscal and financial
vulnerabilities in the advanced economies. These articles were presented
at a conference organized jointly by the Banque de France and BETA in
Strasbourg on 13--14 September. The authors show that the improvement of
macroeconomic toolkit goes hand in hand with the strengthening of fiscal
frameworks and the tools for managing financial tensions. They propose
several indicators in order to capture the variety of vulnerabilities
observed in the industrialized countries since the recent great
depression: funding needs, market perceptions risks, stress dependence
among sovereigns and the reactions of governments to cope with these new
challenges.
Journal: Applied Economics
Pages: 587-588
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861585
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861585
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:587-588
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Franco
Author-X-Name-First: Daniele
Author-X-Name-Last: Franco
Author-Name: Francesco Zollino
Author-X-Name-First: Francesco
Author-X-Name-Last: Zollino
Title: Macroeconomic imbalances in Europe: institutional progress and the challenges that remain
Abstract:
The article reviews the key steps in the
construction of the Economic and Monetary Union (EMU) and the accompanying
debate in the academics and within the European institutions, stressing
that most vulnerabilities unveiled by the sovereign debt crisis were known
long before the inception of the EMU. But the rules, although later
amended, largely neglected the critical implications of macroeconomic
imbalances for fiscal and sustainability. As the financial tensions
deepened, significant progress has been made in enhancing European
economic governance, including the new procedure for macroeconomic
imbalance surveillance (EIP). The article argues that preventing and
correcting macroeconomic imbalances is now one of the EU's most
challenging tasks as major technical and political difficulties still need
to be overcome. The EIP represents a major step forward in strengthening
the EU's capability for managing the risks to macroeconomic stability,
largely contributing to a common understanding among Member States and in
the EU institutions of methods and tools for dealing with the fundamental
macro drivers. The new procedure comes together with a comprehensive
strategy of deep fiscal, financial, economic and political reform of the
EMU. Further progress requires the will to change at both the domestic and
the EU level in order to effectively implement the new procedures and,
where necessary, to reinforce their scopes.
Journal: Applied Economics
Pages: 589-602
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861592
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861592
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:589-602
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Kastrop
Author-X-Name-First: Christian
Author-X-Name-Last: Kastrop
Author-Name: Sarah Ciaglia
Author-X-Name-First: Sarah
Author-X-Name-Last: Ciaglia
Author-Name: Werner Ebert
Author-X-Name-First: Werner
Author-X-Name-Last: Ebert
Author-Name: Sibylle Stoßberg
Author-X-Name-First: Sibylle
Author-X-Name-Last: Stoßberg
Author-Name: Stefanie Wolff-Hamacher
Author-X-Name-First: Stefanie
Author-X-Name-Last: Wolff-Hamacher
Title: Fiscal, economic and financial vulnerabilities: implications for Euro area surveillance
Abstract:
Sound public finances are necessary for
the functioning and economic prosperity of a common currency union. The
financial, economic and European sovereign debt crises revealed that
financial stability and economic growth also serve as prerequisites and
that all three interact in this respect. This has made clear that
containing related vulnerabilities and risks in order to effectively
prevent serious crises is complex and not sufficiently addressed by the
current institutional framework of the Euro area. Substantial
institutional shortcomings are now being addressed by reforms. However, in
this article, we argue that further institutional reforms are needed in
order to integrate vulnerability and risk analyses into surveillance
processes. Above all, we propose setting up an independent expert council
that is charged with the evaluation of all surveillance processes.
Journal: Applied Economics
Pages: 603-615
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861588
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861588
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:603-615
Template-Type: ReDIF-Article 1.0
Author-Name: G. Lam頍
Author-X-Name-First: G.
Author-X-Name-Last: Lam頍
Author-Name: M. Lequien
Author-X-Name-First: M.
Author-X-Name-Last: Lequien
Author-Name: P.-A. Pionnier
Author-X-Name-First: P.-A.
Author-X-Name-Last: Pionnier
Title: Interpretation and limits of sustainability tests in public finance
Abstract:
Public debt is considered sustainable if
discounted net repayments are expected to cover the initial debt issuance,
i.e. if the government's inter-temporal budget constraint is expected to
hold. With risk-averse lenders and an uncertain economic environment, Bohn
(1995) stresses that this constraint relies on a stochastic discount
factor which depends on lenders' preferences. To get round the difficulty
related to the specification of private agents' preferences in empirical
analysis, Bohn (1998) suggests to estimate fiscal reaction functions
describing how primary surplus reacts to indebtedness. After having solved
the econometric issues arising when primary surplus and debt have a very
different persistence (with a nonparametric approach) or are both
integrated (with parametric tests), we estimate fiscal reaction functions
for France and Greece. There remain important limitations and
interpretation difficulties that are common to all econometric
sustainability tests.
Journal: Applied Economics
Pages: 616-628
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861587
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861587
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:616-628
Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Aloy
Author-X-Name-First: Marcel
Author-X-Name-Last: Aloy
Author-Name: Gilles Dufr鮯t
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufr鮯t
Author-Name: Anne P駵in-Feissolle
Author-X-Name-First: Anne
Author-X-Name-Last: P駵in-Feissolle
Title: Is financial repression a solution to reduce fiscal vulnerability? The example of France since the end of World War II
Abstract:
This article contributes to the recent
empirical literature on financial repression and focuses on the French
case since the end of World War II. We find that the fiscal adjustment
needed to lower the debt ratio has been smaller during the years of
financial repression in comparison with those of liberalized financial
markets. This was possible because the real interest rates were low. We
conduct a counterfactual analysis to see whether the vulnerability of
public finances would have been different, if, since the late 1980s, the
governments had continued carrying out the same financial repression
policies. We answer affirmatively showing that the cost of debt service
would have been reduced.
Journal: Applied Economics
Pages: 629-637
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861586
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861586
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:629-637
Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Checherita-Westphal
Author-X-Name-First: Cristina
Author-X-Name-Last: Checherita-Westphal
Author-Name: Andrew Hughes Hallett
Author-X-Name-First: Andrew
Author-X-Name-Last: Hughes Hallett
Author-Name: Philipp Rother
Author-X-Name-First: Philipp
Author-X-Name-Last: Rother
Title: Fiscal sustainability using growth-maximizing debt targets
Abstract:
This article highlights the importance of
debt-related fiscal rules and derives growth-maximizing public debt ratios
from a simple theoretical model. On the basis of evidence on the
productivity of public capital, we estimate public debt targets that
governments should maintain if they wish to maximize growth for panels of
OECD, EU and euro area countries. These are not arbitrary numbers, but are
founded on long-run optimizing behaviour assuming that governments
implement the golden rule of financing; that is, they contract debt only
to finance public investment. Our estimates suggest that the euro area
should target debt levels of around 50% of GDP if member states are to
have common targets. That is about 15% points lower than the estimate for
the growth-maximizing debt ratio in our OECD sample and comfortably within
the Stability and Growth Pact's debt ceiling of 60% of GDP. We also
indicate how forward-looking budget reaction functions fit into a debt
targeting framework.
Journal: Applied Economics
Pages: 638-647
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861590
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861590
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:638-647
Template-Type: ReDIF-Article 1.0
Author-Name: Lukas Reiss
Author-X-Name-First: Lukas
Author-X-Name-Last: Reiss
Title: Fiscal sustainability using growth-maximizing debt targets
Journal: Applied Economics
Pages: 648-649
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861591
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861591
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:648-649
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Schaechter
Author-X-Name-First: Andrea
Author-X-Name-Last: Schaechter
Author-Name: C. Emre Alper
Author-X-Name-First: C. Emre
Author-X-Name-Last: Alper
Author-Name: Elif Arbatli
Author-X-Name-First: Elif
Author-X-Name-Last: Arbatli
Author-Name: Carlos Caceres
Author-X-Name-First: Carlos
Author-X-Name-Last: Caceres
Author-Name: Giovanni Callegari
Author-X-Name-First: Giovanni
Author-X-Name-Last: Callegari
Author-Name: Marc Gerard
Author-X-Name-First: Marc
Author-X-Name-Last: Gerard
Author-Name: Jiri Jonas
Author-X-Name-First: Jiri
Author-X-Name-Last: Jonas
Author-Name: Tidiane Kinda
Author-X-Name-First: Tidiane
Author-X-Name-Last: Kinda
Author-Name: Anna Shabunina
Author-X-Name-First: Anna
Author-X-Name-Last: Shabunina
Author-Name: Anke Weber
Author-X-Name-First: Anke
Author-X-Name-Last: Weber
Title: A toolkit to assess fiscal vulnerabilities and risks in advanced economies
Abstract:
This article presents a range of tools and
indicators for analysing fiscal vulnerabilities and risks for advanced
economies. The analysis covers key short-, medium- and long-term
dimensions. Short-term pressures are captured by assessing (i) gross
funding needs, (ii) market perceptions of default risk and (iii) stress
dependence among sovereigns. Medium- and long-term pressures are
summarized by (iv) medium- and long-term budgetary adjustment needs, (v)
susceptibility of debt projections to growth and interest rate shocks and
(vi) stochastic risks to medium-term debt dynamics. Aiming to cover a wide
range of advanced economies and minimize data lags, has also influenced
the selection of empirical methods. Due to these features, they can, for
example, help inform the joint IMF--FSB Early Warning Exercise (EWE) on
the fiscal dimensions of economic risks.
Journal: Applied Economics
Pages: 650-660
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861589
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861589
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:650-660
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Claeys
Author-X-Name-First: Peter
Author-X-Name-Last: Claeys
Title: Comment on '"A toolkit to assessing fiscal vulnerabilities and risks in advanced economies" by Andrea Schaechter, C. Emre Alper, Elif Arbatli, Carlos Caceres, Giovanni Callegari, Marc Gerard, Jiri Jonas, Tidiane Kinda, Anna Shabunina and Anke Weber'
Journal: Applied Economics
Pages: 661-662
Issue: 6
Volume: 46
Year: 2014
Month: 2
X-DOI: 10.1080/00036846.2013.861960
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861960
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Handle: RePEc:taf:applec:v:46:y:2014:i:6:p:661-662
Template-Type: ReDIF-Article 1.0
Author-Name: Kazumasa Oguro
Author-X-Name-First: Kazumasa
Author-X-Name-Last: Oguro
Author-Name: Motohiro Sato
Author-X-Name-First: Motohiro
Author-X-Name-Last: Sato
Title: Public debt accumulation and fiscal consolidation
Abstract:
In this study, we analyse the relationship
between interest rates on government bonds (GB) and the fiscal
consolidation rule by using an overlapping generation model with
endogenous and stochastic growth settings. Our key findings are summarized
as follows. First, contrary to conventional view, we find that interest
rates on GB may decline as public debt accumulates relative to private
capital. Second, the simulation reveals that the economy may exhibit
discrete changes with divergent interest rates, implying that the observed
trend of relatively low interest rates on GB with public debt accumulation
may not continue indefinitely in the future. Third, fiscal consolidation
rule plays a key role in determining equilibrium interest rates.
Journal: Applied Economics
Pages: 663-673
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.851772
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851772
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:663-673
Template-Type: ReDIF-Article 1.0
Author-Name: Navaz Naghavi
Author-X-Name-First: Navaz
Author-X-Name-Last: Naghavi
Author-Name: Wee-Yeap Lau
Author-X-Name-First: Wee-Yeap
Author-X-Name-Last: Lau
Title: Exploring the nexus between financial openness and informational efficiency -- does the quality of institution matter?
Abstract:
This article examines the empirical link
between financial openness and informational efficiency of stock markets
in 27 emerging markets. Improving on earlier papers, this study has used
World Bank's Worldwide Governance Indicators (WGI) as the proxy of
institutional development in dynamic panel data models estimated by
generalized method of moments (GMM). Our results show, first, financial
liberalization by itself has no impact on enhancing efficiency of stock
market. Second, for countries with high level of institutional
development, the interaction of trade openness and financial openness
become significant. Third, for the same group of countries, interaction
effect of financial liberalization and institutional development leads to
more efficiency in stock market. Hence, our finding demonstrates the
utmost importance of institutional development and its role on
liberalization. Our results conclude that institutional development and
trade openness are pre-requisites for a country to benefit from financial
openness. Our study further provides empirical evidence to theoretical
model proposed by Basu and Morey (2005) that governance is the missing
link between stock market efficiency and financial liberalization. Our
findings suggest that policy makers in developing economies should enhance
the quality of their institution in order to optimize the benefits of
financial liberalization.
Journal: Applied Economics
Pages: 674-685
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.849380
File-URL: http://hdl.handle.net/10.1080/00036846.2013.849380
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:674-685
Template-Type: ReDIF-Article 1.0
Author-Name: T. Kifle
Author-X-Name-First: T.
Author-X-Name-Last: Kifle
Author-Name: P. Kler
Author-X-Name-First: P.
Author-X-Name-Last: Kler
Author-Name: S. Shankar
Author-X-Name-First: S.
Author-X-Name-Last: Shankar
Title: Are women really that happy at work? Australian evidence on the 'contented female'
Abstract:
This article investigates the apparent
paradox of females possessing higher levels of job satisfaction compared
to their male counterparts despite possessing worse employment outcomes.
Postulating that the female workforce is heterogeneous by age, education
and the presence of children, we create four groups; the aggregated, young
and childless, young with children and the educated. The article finds
statistical evidence of significant gender differences, though not
uniformly so. Econometric results, however, paint a muddier picture,
indicating that statistical results alone should not be used to
categorically report incidences of gender differences in job satisfaction.
Sample-selection bias results also evince sub-group heterogeneity and
require further study. The determinants of job satisfaction vary between
measures and sub-groups, though not necessarily so across gender. In sum,
the article finds that the paradox does exhibit itself for the aggregated
and young and childless sub-groups, but is largely absent for the young
with children group. As well, there is a clear bifurcation in job
satisfaction between genders for the educated sub-group. This suggests
that employed females should not be viewed as a monolithic bloc in the
labour force.
Journal: Applied Economics
Pages: 686-697
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.851781
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851781
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:686-697
Template-Type: ReDIF-Article 1.0
Author-Name: Marga Peeters
Author-X-Name-First: Marga
Author-X-Name-Last: Peeters
Author-Name: Ard den Reijer
Author-X-Name-First: Ard
Author-X-Name-Last: den Reijer
Title: Coordination versus flexibility in wage formation: a focus on the nominal wage impact of productivity in Germany, Greece, Ireland, Portugal, Spain and the United States
Abstract:
Wage coordination between countries of the
European Monetary Union (EMU) aims at aligning nominal wage growth with
labour productivity growth at the national level. We analyse the
developments in Germany, the EMU's periphery countries Greece, Ireland,
Portugal and Spain along with the United States over the period 1980 to
2010. Apart from the contribution of productivity to nominal wages, we
take into account the contributions of prices, unemployment, replacement
rates and taxes by means of an econometrically estimated nonlinear
equation resulting from a wage bargaining model. We further study the
downward rigidities of nominal wages. The findings show that in past times
of low productivity, price inflation and reductions in unemployment still
put significant upward pressure on nominal wage growth. The periphery
countries are far from aligning nominal wage growth with productivity
growth. German productivity is a major wage determinant, but surely not
the only one. Within the context of a free bargaining process between
employers and labour unions, policy-makers can effectively use the
replacement rate to steer the nominal wages outcome.
Journal: Applied Economics
Pages: 698-714
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.851773
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851773
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:698-714
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Koch
Author-X-Name-First: Nicolas
Author-X-Name-Last: Koch
Title: Dynamic linkages among carbon, energy and financial markets: a smooth transition approach
Abstract:
This article explores how price linkages
between carbon allowances and market fundamentals in the EU Emissions
Trading Scheme (EU ETS) vary over time. I adopt a multivariate GARCH model
that allows the conditional correlation between carbon, energy and
financial prices to change smoothly across regimes governed by functions
of two transition variables that explain why price linkages vary. I use
(i) time as transition variable to allow for structural changes associated
with institutional advances in the EU ETS and (ii) implied volatility to
account for heterogeneity in the behaviour of correlations in times of
distress compared to calm periods. The results point to a new pricing
regime with much closer carbon-energy price linkages in the second phase
of the EU ETS. Furthermore, I find that correlations depend on market
uncertainty conditions, which exposes the link between carbon and
financial markets due to common macroeconomic shocks during the current
financial crisis.
Journal: Applied Economics
Pages: 715-729
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854301
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854301
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:715-729
Template-Type: ReDIF-Article 1.0
Author-Name: P. Montalbano
Author-X-Name-First: P.
Author-X-Name-Last: Montalbano
Author-Name: S. Nenci
Author-X-Name-First: S.
Author-X-Name-Last: Nenci
Title: Assessing the trade impact of the European Neighbourhood Policy on the EU-MED Free Trade Area
Abstract:
The European Neighbourhood Policy (ENP)
set an additional objective for the Southern Mediterranean Countries
(SMCs): the prospect of 'a stake in the internal market'. The launch of
this new policy has been the occasion for a revival of empirical studies
aimed at assessing the impact of the EU-MED partnership on bilateral
trade. The novelty of this work is twofold: (i) to present nonparametric
matching estimators besides gravity estimates; (ii) to assume as a
counterfactual of the treatment the ex-post long-run average treatment
effects of the Europe Agreements. By controlling for likely selection bias
and country and time heterogeneity, using both qualitative and
quantitative measures of the policy variable, we assess
ex-post the trade-enhancing impact of the EU preferential
agreements towards SMCs and ex ante the actual efficacy
of the ENP.
Journal: Applied Economics
Pages: 730-740
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.851776
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851776
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:730-740
Template-Type: ReDIF-Article 1.0
Author-Name: Yizao Liu
Author-X-Name-First: Yizao
Author-X-Name-Last: Liu
Title: Should further mergers be allowed? Product differentiation and merger in the external audit market
Abstract:
The external audit market in US is a
market with noticeable features: a highly concentrated market, various
choice patterns of auditors and the sequential mergers of big auditors
over time. There has been growing concern about the impact of mergers and
the increasing market concentration. Using a flexible multinomial probit
model and micro level data on over 3000 public companies, this article
investigates production differentiation and merger in the external audit
service market between the Big Four accounting firms. Based on the
estimation results of the demand estimates, a model of post-merger conduct
is then used to simulate the competitive effects of a merger. The results
suggest that merger effects on prices in this market are not significant
with no larger than 3%.
Journal: Applied Economics
Pages: 741-749
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.851777
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851777
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:741-749
Template-Type: ReDIF-Article 1.0
Author-Name: Line Bjørnskov Pedersen
Author-X-Name-First: Line Bjørnskov
Author-X-Name-Last: Pedersen
Author-Name: Julie Riise
Author-X-Name-First: Julie
Author-X-Name-Last: Riise
Author-Name: Arne Risa Hole
Author-X-Name-First: Arne Risa
Author-X-Name-Last: Hole
Author-Name: Dorte Gyrd-Hansen
Author-X-Name-First: Dorte
Author-X-Name-Last: Gyrd-Hansen
Title: GPs' shifting agencies in choice of treatment
Abstract:
Earlier studies have shown that general
practitioners' (GPs) prescription choices are influenced by effect,
patient costs and costs to society, patient attitude and own experience.
This study builds on this knowledge and explores how prescription
behaviour is affected when choices are made in different contexts, where
the conflicting roles as agents for the patient and agents for society are
stressed. A total of 309 Danish GPs were randomly allocated to one of
three versions of a web-based questionnaire, which included a discrete
choice experiment. Mixed logit models in willingness to pay (WTP) space
were estimated with and without accounting for stated attribute
non-attendance. Results show that the GP's role as agent for his patients
is clearly strengthened in the presence of national recommendations. In
contrast, when recommendations are not present and when GPs face a patient
who is currently taking an expensive albeit effective medication, the GP
takes on his role as agent for society. We find no evidence of status quo
bias in such a setting, with a majority of GPs opting for a medication
which offers less certainty about effectiveness at lower cost.
Journal: Applied Economics
Pages: 750-761
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854305
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854305
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:750-761
Template-Type: ReDIF-Article 1.0
Author-Name: Arndt Reichert
Author-X-Name-First: Arndt
Author-X-Name-Last: Reichert
Author-Name: Harald Tauchmann
Author-X-Name-First: Harald
Author-X-Name-Last: Tauchmann
Title: When outcome heterogeneously matters for selection: a generalized selection correction estimator
Abstract:
The classical Heckman (1976, 1979)
selection correction estimator (heckit) is misspecified and inconsistent,
if an interaction of the outcome variable with an explanatory variable
matters for selection. To address this specification problem, a full
information maximum likelihood (FIML) estimator and a simple two-step
estimator are developed. Monte Carlo (MC) simulations illustrate that the
bias of the ordinary heckit estimator is removed by these generalized
estimation procedures. Along with OLS and ordinary heckit, we apply these
estimators to data from a randomized trial that evaluates the
effectiveness of financial incentives for reducing obesity. Estimation
results indicate that the choice of the estimation procedure clearly
matters.
Journal: Applied Economics
Pages: 762-768
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.851780
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851780
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:762-768
Template-Type: ReDIF-Article 1.0
Author-Name: Robert M. Feinberg
Author-X-Name-First: Robert M.
Author-X-Name-Last: Feinberg
Title: State antitrust enforcement in the US and implications for small business entry and relocation
Abstract:
This article examines the impact of the
important, yet little studied, state-level antitrust enforcement activity
on entry and relocation behaviour by small US firms. Feinberg and Husted
(2011) have shown that this enforcement, especially nonhorizontal cases,
may be viewed by potential entrants as a negative aspect of the state
business climate. However, they did not pursue a more disaggregate
analysis of small firm entry behaviour; nor did they investigate different
responses between manufacturing, wholesaling and retailing firms. Another
related issue is the extent to which state cases filed in tandem with
federal investigations have the same impact on establishment entry as do
purely 'independent' cases. These considerations are dealt with in this
article. The author uses annual state-level data from the Statistics of US
Business to examine entry and relocation reactions to state antitrust
enforcement by firms within three small-business categories: 1--19
employees; 20--99 employees; 100--499 employees. Generally speaking, the
smallest retail and wholesale firms seem to favour vigorous antitrust
activity, especially enforcement targeted against cartel behaviour by
suppliers. The largest small-firm retailers and wholesalers (those with
100--499 employees) seem somewhat threatened by such activity, especially
the more controversial nonhorizontal enforcement. However, it must be
acknowledged that the effects on entry or relocation of small firms --
both positive and negative -- are quite small.
Journal: Applied Economics
Pages: 769-779
Issue: 7
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854306
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854306
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Handle: RePEc:taf:applec:v:46:y:2014:i:7:p:769-779
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Nicolas Peypoch
Author-X-Name-First: Nicolas
Author-X-Name-Last: Peypoch
Author-Name: Scott Tainsky
Author-X-Name-First: Scott
Author-X-Name-Last: Tainsky
Title: Cost efficiency of French soccer league teams
Abstract:
This article evaluates the operational
activities of French soccer clubs from 2003 to 2011 by using a finite
mixture model that allows controlling for unobserved heterogeneity. In
doing so, a stochastic frontier latent class model, which allows the
existence of different technologies, is adopted to estimate cost
frontiers. This procedure not only enables us to identify different groups
of French soccer clubs but also permits to analyse their cost efficiency.
The main result is that there are two groups among the French soccer
clubs, both following completely different 'technologies' to obtain league
points, suggesting that business strategies need to be adapted to the
characteristics of the clubs. Some managerial implications are developed.
Journal: Applied Economics
Pages: 781-789
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854304
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854304
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:781-789
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: Estimating the optimal hedge ratio in the presence of potential unknown structural breaks
Abstract:
We propose a new approach in the
estimation of the optimal hedge ratio that allows the hedge ratio to vary
over time but without the necessity of frequently rebalancing the
portfolio. We apply this in the context of the US and UK equity markets
using weekly spot share prices and future share prices during the period 5
January 1999 to 29 September 2009. Our method is to test for cointegration
in the presence of two potentially unknown structural breaks by
determining the timing of each via the underlying data. The empirical
findings reveal that the spot and future prices are strongly cointegrated
in each market. The estimated parameters disclose that the optimal hedge
ratio is not constant in case of the US and the UK. We find one negative
and one positive shift in the optimal hedge ratio in the US. However, we
find only one significant and positive shift in the optimal hedge ratio in
the UK. The implication of these findings from the perspective of both
investors as well as policy-makers is elaborated on in the main text.
Journal: Applied Economics
Pages: 790-795
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854303
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854303
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:790-795
Template-Type: ReDIF-Article 1.0
Author-Name: Sam Meng
Author-X-Name-First: Sam
Author-X-Name-Last: Meng
Title: How may a carbon tax transform Australian electricity industry? A CGE analysis
Abstract:
The carbon tax policy proposed by
Australian government has triggered deep concerns about the high
electricity prices facing households and the sustainability of electricity
industry. By employing a computable general equilibrium (CGE) model and an
environmentally extended Social Accounting Matrix (SAM), this article
simulates the effect of Australian carbon tax on the electricity industry.
The modelling results show that the wholesale electricity prices indeed
increase by about 90%, but the retailer prices only increase by 25%. The
coal-fired electricity generators will reduce their output by 8% (for
black-coal) to 18% (for brown-coal), but the profitability of the industry
will drop dramatically. On the other hand, generators using oil, gas or
renewable resources, will increase their output significantly and enjoy a
handsome profit. Through the price, cost and profitability mechanisms, the
carbon tax will transfer the Australian electricity generation to a low
emission industry in the long term.
Journal: Applied Economics
Pages: 796-812
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854302
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854302
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:796-812
Template-Type: ReDIF-Article 1.0
Author-Name: Liu
Author-X-Name-First:
Author-X-Name-Last: Liu
Title: Do futures prices exhibit maturity effect? A nonparametric revisit
Abstract:
The maturity effect (ME) of futures prices
postulated by Samuelson (1965) is re-examined using three nonparametric
tests. The consistent entropy asymmetry test by Racine and Maasoumi (2007)
indicates that variance is an appropriate risk or uncertainty measure for
ME, and value-at-risk and expected shortfall are also adopted. The
Kolmogorov--Smirnov dominance test and Wilcoxon rank sum and signed rank
test are employed to rank the estimates of the three risk measures under a
moving-window framework. The testing outcomes are contingent on futures
type, testing method and risk measures. The testing outcomes show mild
support for ME.
Journal: Applied Economics
Pages: 813-825
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854299
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854299
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:813-825
Template-Type: ReDIF-Article 1.0
Author-Name: Amalia Morales-Zumaquero
Author-X-Name-First: Amalia
Author-X-Name-Last: Morales-Zumaquero
Author-Name: Simosvilla-Rivero
Author-X-Name-First: Sim
Author-X-Name-Last: Sosvilla-Rivero
Title: Real exchange rate volatility, financial crises and exchange rate regimes
Abstract:
This article examines real exchange rate
(RER) volatility in 80 countries around the world, during the period 1970
to 2011. Two main questions are raised: are structural breaks in RER
volatility related to changes in exchange rate regimes or financial
crises? And do these two events affect the permanent and transitory
components of RER volatility? To answer these, we employ two complementary
procedures that consist in detecting structural breaks in the RER series
and decomposing volatility into its permanent and transitory components.
Our results suggest that structural breaks in RER volatility coincidence
with financial crises and certain changes in nominal exchange rate
regimes. Moreover, our findings confirm that RER volatility does increase
with the global financial crises and detect that the more flexible the
exchange rate regime, the higher the volatility of the RER using a
de facto exchange rate classification.
Journal: Applied Economics
Pages: 826-847
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.859382
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859382
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:826-847
Template-Type: ReDIF-Article 1.0
Author-Name: Naneida Regina Lazarte Alcala
Author-X-Name-First: Naneida Regina
Author-X-Name-Last: Lazarte Alcala
Author-Name: Lee C. Adkins
Author-X-Name-First: Lee C.
Author-X-Name-Last: Adkins
Author-Name: Bidisha Lahiri
Author-X-Name-First: Bidisha
Author-X-Name-Last: Lahiri
Author-Name: Andreas Savvides
Author-X-Name-First: Andreas
Author-X-Name-Last: Savvides
Title: Remittances and income diversification in Bolivia's rural sector
Abstract:
This article examines the role of
remittances in income diversification strategies in Bolivia's rural
sector. Remittances can be consumed or invested by the recipient. As an
investment, funds can be used for farming or to finance other nonfarm
productions. In this article, we use a large and nationally representative
survey to estimate the effect that remittances have on the probability of
producing income from nonfarm activities (diversification) by using a
bivariate probit model. Our evidence shows that remittances increase the
probability that a rural family engages in nonfarm activities, at least in
some regions of Bolivia. We also find evidence that the sender's decision
to remit and the recipient's decision to diversify may be jointly
determined. As such, this suggests that remittances may serve as a
mechanism to overcome localized failures in Bolivia's capital markets.
Journal: Applied Economics
Pages: 848-858
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854300
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854300
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:848-858
Template-Type: ReDIF-Article 1.0
Author-Name: Terence C. Cheng
Author-X-Name-First: Terence C.
Author-X-Name-Last: Cheng
Author-Name: Alfons Palangkaraya
Author-X-Name-First: Alfons
Author-X-Name-Last: Palangkaraya
Author-Name: Jongsay Yong
Author-X-Name-First: Jongsay
Author-X-Name-Last: Yong
Title: Hospital utilization in mixed public--private system: evidence from Australian hospital data
Abstract:
This article investigates whether patients
who used a mixture of private and public hospital care have higher total
hospital utilization than those who exclusively used either public or
private hospital care. Using Australian hospital administrative data of
heart disease patients, we found that those who used a mixture of private
and public care had the highest total hospital utilization. Our findings
are robust to how utilization is measured and endogeneity between
utilization and hospital type choice.
Journal: Applied Economics
Pages: 859-870
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.854307
File-URL: http://hdl.handle.net/10.1080/00036846.2013.854307
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:859-870
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Hofmarcher
Author-X-Name-First: Paul
Author-X-Name-Last: Hofmarcher
Author-Name: Stefan Kerbl
Author-X-Name-First: Stefan
Author-X-Name-Last: Kerbl
Author-Name: Bettina Grün
Author-X-Name-First: Bettina
Author-X-Name-Last: Grün
Author-Name: Michael Sigmund
Author-X-Name-First: Michael
Author-X-Name-Last: Sigmund
Author-Name: Kurt Hornik
Author-X-Name-First: Kurt
Author-X-Name-Last: Hornik
Title: Model uncertainty and aggregated default probabilities: new evidence from Austria
Abstract:
Understanding the determinants of
aggregated corporate default probabilities (PDs) has attracted substantial
research interest over the past decades. This study addresses two major
difficulties in understanding the determinants of aggregate PDs: model
uncertainty and multicollinearity among the regressors. We present
Bayesian model averaging (BMA) as a powerful tool that overcomes model
uncertainty. Furthermore, we supplement BMA with ridge regression to
mitigate multicollinearity. We apply our approach to an Austrian data set.
Our findings suggest that factor prices like short-term interest rates
(STIs) and energy prices constitute major drivers of default rates, while
firms' profits reduce the expected number of failures. Finally, we show
that the results of our model are fairly robust with respect to the choice
of the BMA parameters.
Journal: Applied Economics
Pages: 871-879
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.859378
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859378
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:871-879
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Ochmann
Author-X-Name-First: Richard
Author-X-Name-Last: Ochmann
Title: Differential income taxation and household asset allocation
Abstract:
This article empirically investigates the
effects of differential income taxation on households' portfolio choice
and asset allocation, applying a two-stage budgeting model of asset demand
to German survey data. The model is structured into the discrete and the
continuous asset choice. Cross-sectional variation in marginal tax rates,
appropriately instrumented, as well as over-time variation from a major
tax reform are used to identify the tax effects. Households with higher
tax rates are found to have relatively greater demand for tax-privileged
assets, such as nonowner-occupied housing, mortgage repayments, building
society deposits, stocks, insurances and consumer credits, than households
with lower tax rates. Demand at higher tax rates is lower for
owner-occupied housing, bank deposits and bonds.
Journal: Applied Economics
Pages: 880-894
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.859381
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859381
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:880-894
Template-Type: ReDIF-Article 1.0
Author-Name: Theoharry Grammatikos
Author-X-Name-First: Theoharry
Author-X-Name-Last: Grammatikos
Author-Name: Robert Vermeulen
Author-X-Name-First: Robert
Author-X-Name-Last: Vermeulen
Title: The 2007--2009 financial crisis: changing market dynamics and the impact of credit supply and aggregate demand sensitivity
Abstract:
This article singles out the determinants
of changes in US firms' systematic risk and idiosyncratic return induced
by the 2007--2009 financial crisis. After establishing that systematic
risk changes during the crisis, the results show that higher operational
and financial leverage coincide with an increase in systematic risk, while
high cash availability is associated with a decrease in systematic risk.
The crisis-induced idiosyncratic return worsens with increasing financial
leverage, higher sensitivity to aggregate demand shocks and banking sector
problems, and lower operational leverage. Additional results show that the
aforementioned variables have economically large effects on firm
performance during the crisis.
Journal: Applied Economics
Pages: 895-911
Issue: 8
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.859379
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859379
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Handle: RePEc:taf:applec:v:46:y:2014:i:8:p:895-911
Template-Type: ReDIF-Article 1.0
Author-Name: David A. Volkman
Author-X-Name-First: David A.
Author-X-Name-Last: Volkman
Author-Name: Olivier J. P. Maisondieu Laforge
Author-X-Name-First: Olivier J. P.
Author-X-Name-Last: Maisondieu Laforge
Author-Name: Mark Wohar
Author-X-Name-First: Mark
Author-X-Name-Last: Wohar
Title: The conditional influence of term spread and pattern changes on future equity returns
Abstract:
We extend previous research examining the
relation between interest rates and equity returns using a multivariate
analysis of covariance model with a dynamic yield curve and conditioned
term spread. We find yield pattern changes predict economic equity
returns; that the long end-of-yield curve is a strong determinant factor;
and, in contrast to previous research, we find no relation between a
decrease in the short rate and equity returns. However, the conditional
term spread captures a significant positive return indicating that the
degree of decline in the short rate relative to the long rate is of more
importance than the term spread alone.
Journal: Applied Economics
Pages: 913-923
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.859377
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859377
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:913-923
Template-Type: ReDIF-Article 1.0
Author-Name: Denise Doiron
Author-X-Name-First: Denise
Author-X-Name-Last: Doiron
Author-Name: Jane Hall
Author-X-Name-First: Jane
Author-X-Name-Last: Hall
Author-Name: Patricia Kenny
Author-X-Name-First: Patricia
Author-X-Name-Last: Kenny
Author-Name: Deborah J. Street
Author-X-Name-First: Deborah J.
Author-X-Name-Last: Street
Title: Job preferences of students and new graduates in nursing
Abstract:
This article investigates the preferences
of student and newly graduated nurses for pecuniary and nonpecuniary
aspects of nursing jobs. It is the first study applying methods based on
discrete choice experiments to a developed country nursing workforce. It
is also the first to focus on the transition through university training
and into work. This is particularly important as junior nurses have the
lowest retention levels in the profession. We sample 526 individuals from
nursing programmes in two Australian universities. Flexible and newly
developed models combining heteroscedasticity with unobserved
heterogeneity in scale and preference weights are estimated. Overall,
salary remains the most important feature in increasing the probability
that a job will be selected. 'Supportive management/staff' and 'quality of
care' follow as the most important attributes from a list of 11
nonpecuniary characteristics. However, the subset of new graduates rank
'supportive management/staff' above salary increases, emphasizing the
importance of a supportive workplace in the transition from university to
the workplace. We find substantial preference heterogeneity and some
attributes, such as the opportunity for clinical rotations, are found to
be attractive to some nurses while seen as negative by others. Nursing
retention could be improved by designing different employment packages to
appeal to these different tastes.
Journal: Applied Economics
Pages: 924-939
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.861584
File-URL: http://hdl.handle.net/10.1080/00036846.2013.861584
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:924-939
Template-Type: ReDIF-Article 1.0
Author-Name: Apostolos Tsiachristas
Author-X-Name-First: Apostolos
Author-X-Name-Last: Tsiachristas
Author-Name: Maureen P. M. H. Rutten-van Mölken
Author-X-Name-First: Maureen P. M. H.
Author-X-Name-Last: Rutten-van Mölken
Title: Exploring the variability of patient costs in disease management programs: a hierarchical modelling approach
Abstract:
Disease management programs include a wide
variation of patients with different chronic diseases and different health
care utilization. The aim of this article was to identify factors on
patient-level and organizational-level that explain the variability in
costs of patients with different chronic diseases enrolled in a DMP by
employing a rigorous analytical model. A generalized linear mixed model
(GLMM) was specified to perform a multi-level analysis of cross-sectional
hierarchical data from 16 DMPs in the Netherlands. Multiple imputation,
sub-group analysis per disease and analysis from both the health care and
the societal perspectives were also performed. Our model showed that age,
the presence of cardiovascular disease, multi-morbidity and payments on
top of the payment for the usual care had positive relation with costs,
while better quality of life was associated with lower health care costs.
In the COPD sample, physical activity and employment were associated with
health care costs. Our study showed that there is great variability in
health care costs among patients included in DMPs and identified patient
and organizational explanatory factors. The findings are relevant to the
design of future DMPs and their payment schemes.
Journal: Applied Economics
Pages: 940-951
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.864044
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864044
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:940-951
Template-Type: ReDIF-Article 1.0
Author-Name: Ruud Gerards
Author-X-Name-First: Ruud
Author-X-Name-Last: Gerards
Author-Name: Andries de Grip
Author-X-Name-First: Andries
Author-X-Name-Last: de Grip
Author-Name: Maaike Witlox
Author-X-Name-First: Maaike
Author-X-Name-Last: Witlox
Title: 'Employability-miles' and worker employability awareness
Abstract:
This article studies the use and impact of
a ('Employability-miles') voucher scheme. These vouchers could be used for
participation in a restricted number of training courses, which all aim to
stimulate employees to develop a more active attitude towards their own
employability. Using data from two surveys of one firm's workforce, we
find that voucher use is related to various personality traits and
personal characteristics. In particular, a worker's ambition, goal setting
and education level are positively related to voucher use. In addition,
workers with longer tenure spend their vouchers more often. Conversely,
workers with a more positive self-image as well as those who are
negatively reciprocal spend their vouchers less often. The negative
relation between voucher use and negative reciprocity suggests that
workers who are more negatively reciprocal perceive the voucher as an HR
tool for outplacement. Further, we find that voucher use positively
affects worker employability awareness and willingness to train.
Remarkably, participation in non voucher training shows little relation to
personality traits. From a human resources (HR) perspective, this finding
suggests that by employing a voucher scheme, the firm makes training
participation more dependent on employee personality and individual
characteristics instead of the HR development strategy of the firm.
Journal: Applied Economics
Pages: 952-965
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.864036
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864036
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:952-965
Template-Type: ReDIF-Article 1.0
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Author-Name: Rengui Zhang
Author-X-Name-First: Rengui
Author-X-Name-Last: Zhang
Title: Does mixed-frequency investor sentiment impact stock returns? Based on the empirical study of MIDAS regression model
Abstract:
We examine whether mixed-frequency
investor sentiment affects stock returns. In line with recent evidence
from China, we find that the aggregate effect and the individual effect of
mixed-frequency investor sentiment are statistically significant, and
mixed-frequency investor sentiment is more important than the
low-frequency one. Moreover, mixed-frequency investor sentiment, which is
mixed by high-frequency data, can be more important than the market
premium.
Journal: Applied Economics
Pages: 966-972
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.864041
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864041
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:966-972
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Sushanta Kumar Mallick
Author-X-Name-First: Sushanta Kumar
Author-X-Name-Last: Mallick
Author-Name: Ricardo Magalhães Sousa
Author-X-Name-First: Ricardo Magalhães
Author-X-Name-Last: Sousa
Title: Nonlinear monetary policy reaction functions in large emerging economies: the case of Brazil and China
Abstract:
This article estimates monetary policy
rules for two key emerging market economies: Brazil and China. It analyses
whether the monetary authority reacts to changes in economic activity,
financial markets, monetary conditions, the foreign exchange market and
the commodity price. We assess the importance of nonlinearity using a
smooth transition regression (STR) model. Using quarterly data over the
time period 1990:1 to 2008:4, we find that considerations about the output
gap and the real effective exchange rate (in the case of Brazil), and the
inflation rate (for China) explain the nonlinear adjustment of the central
bank rate. Moreover, the results suggest that central banks pursue a
target range for the threshold variable rather than a specific point
target. In the case of China, the McCallum rule shows that the GDP growth,
the interest rate and the commodity price drive the response of the growth
rate of the relevant monetary aggregate.
Journal: Applied Economics
Pages: 973-984
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.851774
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851774
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:973-984
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Ivrendi
Author-X-Name-First: Mehmet
Author-X-Name-Last: Ivrendi
Author-Name: Douglas K. Pearce
Author-X-Name-First: Douglas K.
Author-X-Name-Last: Pearce
Title: Asset prices and expected monetary policy: evidence from daily data
Abstract:
This article explores the relationships
among Libor, gold prices, the exchange rate, oil prices, fed funds futures
prices and stock prices at a daily frequency. This article examines
whether expected monetary policy, measured by changes in the prices of fed
funds futures contracts, reacts to high frequency changes in asset prices
and, in turn, whether asset prices respond to changes in expected monetary
policy. The article reveals that there are statistically significant
relationships between expected US monetary policy and shocks to Libor and
exchange rates. It also reveals that there is no evidence of a systematic
relationship between stock prices and expected monetary policy changes.
Splitting the data into expansionary and recessionary periods using NBER
dating, we find results for the expansionary periods that are very similar
to the results for the entire period. For the periods of recession, we
find little evidence of significant linkages between markets.
Journal: Applied Economics
Pages: 985-995
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.864038
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864038
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:985-995
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Biewen
Author-X-Name-First: Martin
Author-X-Name-Last: Biewen
Author-Name: Constantin Weiser
Author-X-Name-First: Constantin
Author-X-Name-Last: Weiser
Title: An empirical test of marginal productivity theory
Abstract:
We explore an hitherto unused approach to
testing marginal productivity theory. Our method rests on the simple idea
that, under the assumption of a linear homogeneous production function,
residual profits are informative about the discrepancies between factor
payments and marginal products. Our empirical application using data on
manufacturing plants in Chile suggest moderate deviations from marginal
productivity theory which depend on firm size.
Journal: Applied Economics
Pages: 996-1020
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.864042
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864042
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:996-1020
Template-Type: ReDIF-Article 1.0
Author-Name: Niels Hermes
Author-X-Name-First: Niels
Author-X-Name-Last: Hermes
Title: Does microfinance affect income inequality?
Abstract:
This study addresses the question whether
participation of the poor in microfinance contributes to reducing a
country's level of income inequality. Using data from 70 developing
countries, we show that higher levels of microfinance participation are
indeed associated with a reduction of the income gap between rich and poor
people. We also show, however, that the effects of microfinance on
reducing income inequality are relatively small. The results of this study
add to the discussion on the impact of microfinance on poverty by showing
that, although access to microfinance does seem to improve the relative
income position of the poor, this improvement is modest, which is probably
because the use of microfinance is generally small as compared to the size
of the economy of the countries in our sample. Microfinance should,
therefore, not be seen as a panacea for bringing down income inequality in
a significant way.
Journal: Applied Economics
Pages: 1021-1034
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.864039
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864039
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:1021-1034
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Uyar
Author-X-Name-First: Ali
Author-X-Name-Last: Uyar
Author-Name: Cemil Kuzey
Author-X-Name-First: Cemil
Author-X-Name-Last: Kuzey
Title: Determinants of corporate cash holdings: evidence from the emerging market of Turkey
Abstract:
This study analyses the factors that might
explain the level of corporate cash holdings in a broad sample of
Turkish-listed nonfinancial firms over the period 1997 to 2011. The
empirical results reveal that, on average, Turkish firms hold 9.1% of
their total assets as cash and cash equivalents. There is a steadily
increasing trend in cash holding across the years. Both the system GMM and
the difference GMM regression results are consistent; almost exactly the
same variables are significant and going in the same direction. The
findings indicate that the previous year's cash holding is positive and
significant determinant at the current year's cash level, suggesting that
these firms have a targeted cash level. Furthermore, the results reveal
that cash flow and growth opportunities have positive and significant
impact on the cash level. However, the amount of capital expenditures,
liquid assets used as cash substitute, the degree of tangibility of
assets, financial debt ratio and leverage have negative and significant
impact on the cash level. Most of these explanatory variables were in line
with our theoretical background and with previous studies as well.
Journal: Applied Economics
Pages: 1035-1048
Issue: 9
Volume: 46
Year: 2014
Month: 3
X-DOI: 10.1080/00036846.2013.866203
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866203
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Handle: RePEc:taf:applec:v:46:y:2014:i:9:p:1035-1048
Template-Type: ReDIF-Article 1.0
Author-Name: Xinhua Gu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Gu
Author-Name: Pui Sun Tam
Author-X-Name-First: Pui Sun
Author-X-Name-Last: Tam
Title: Market structure and casino taxation in tourist resorts
Abstract:
This article examines the association of
tax effects with market structure for casino gaming. We show that if
market structure is uncompetitive, much of casino taxation falls on
tourists whose demand is inelastic relative to supply. The tax is likely
to be efficient under strong external demand if imposed on oligopoly
casinos with a monopoly location in a cross-border market. The likelihood
of economically 'good' taxation is greater under oligopoly than under
competition but lower than under monopoly. Casino taxes should be lowered
in a more competitive market with weaker external demand. Our prediction
is consistent with the evidence found from casino tourism development in
Macao with 'high' gambling taxes.
Journal: Applied Economics
Pages: 1049-1057
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.864037
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864037
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1049-1057
Template-Type: ReDIF-Article 1.0
Author-Name: Alfred A. Haug
Author-X-Name-First: Alfred A.
Author-X-Name-Last: Haug
Title: On real interest rate persistence: the role of breaks
Abstract:
The role of structural breaks in long
spans of ex-post real interest rates for 10 industrialized countries is
studied. First, the persistence of the real interest is assessed with
newly proposed low-frequency tests of Müller and Watson (2008). Second,
the test of Leybourne et al. (2007) for a change in
persistence of a time series is applied to the real interest rate. The
results show that real interest rates over the full sample period do not
fit a covariance-stationary or unit-root model, nor a fractionally
integrated, near-unit-root or local-level model. Instead, the persistence
of real rates changes over time and there are periods when the real rate
is covariance-stationary and other periods when it follows a unit-root
process.
Journal: Applied Economics
Pages: 1058-1066
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.864043
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864043
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1058-1066
Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Buzzacchi
Author-X-Name-First: Luigi
Author-X-Name-Last: Buzzacchi
Author-Name: Stefano Pedrini
Author-X-Name-First: Stefano
Author-X-Name-Last: Pedrini
Title: Does player specialization predict player actions? Evidence from penalty kicks at FIFA World Cup and UEFA Euro Cup
Abstract:
Penalty kicks are analysed in the
literature as 'real life experiments' for assessing the use of rational
mixed strategies by professional players. However, each penalty kick
cannot be considered a repetition of the same event because of the varying
background conditions, in particular the heterogeneous ability of
different players. Consequently, aggregate statistics over data sets
composed of a large number of penalty kicks mediate the behaviour of the
players in different games, and the properties of optimal
mixed strategies cannot be tested directly because of aggregation
bias. In this article, we model the heterogeneous ability of
players. We then test the hypothesis that differently talented players
randomize over different actions. To achieve this aim, we study a data set
that collects penalties kicked during shoot-out series in the last
editions of FIFA World Cup and UEFA Euro Cup (1994--2012) where kickers
are categorized as specialists and non-specialists. The results support
our theoretical predictions.
Journal: Applied Economics
Pages: 1067-1080
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.866205
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866205
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1067-1080
Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuelle Pi鲡rd
Author-X-Name-First: Emmanuelle
Author-X-Name-Last: Pi鲡rd
Author-Name: Paul Grootendorst
Author-X-Name-First: Paul
Author-X-Name-Last: Grootendorst
Title: Do downturns cause desperation? The effect of economic conditions on suicide rates in Canada
Abstract:
There is conflicting evidence concerning
the impact of macroeconomic conditions on suicide rates. To help resolve
this pertinent question, we present evidence using Canadian data. We
estimate feasible generalized least squares models of annual
gender-specific suicide rates in the working age population (aged 25--64)
using data from each of the 10 Canadian provinces over the period 1982 to
2007. We allow for heteroscedasticity across provinces and first-order
autocorrelation common to all provinces. We posit that suicide rates in
this population are a function of macroeconomic conditions (current and
lagged unemployment rates and real per capita GDP) and other determinants
that might be correlated with macro conditions, such as physician supply.
We find that different factors affect suicide rates across genders and
that some of the results are sensitive to the specification of the model
we use and the regressors included. Generally, economic conditions affect
men more than women; suicide rates are counter-cyclical and a higher
supply of psychiatrists in a province is correlated with lower suicide
rates.
Journal: Applied Economics
Pages: 1081-1092
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.866204
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866204
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1081-1092
Template-Type: ReDIF-Article 1.0
Author-Name: Gregory A. Falls
Author-X-Name-First: Gregory A.
Author-X-Name-Last: Falls
Author-Name: Paul A. Natke
Author-X-Name-First: Paul A.
Author-X-Name-Last: Natke
Title: College football attendance: a panel study of the Football Bowl Subdivision
Abstract:
Panel data with an instrumented real
ticket price are used to estimate a regular season game-day attendance and
per cent of capacity regression equations. Better team performance,
whether short term (season wins), intermediate term (bowls games in last
10 years) or long term (lifetime winning percentage), higher undergraduate
enrolment, traditional rivalries and video coverage increase per cent of
capacity used. Poor weather (more rain or cloud cover), higher travel
costs and larger local population decrease it. Fan interest wanes as a
season progresses, but this is offset as a team wins more games. Games
played near a National Football League stadium, those with conference
opponents, non-FBS opponents and non-BCS opponents have lower stadium
utilization. The substantive results of the analysis do not change when
attendance is used as the dependent variable rather than per cent of
capacity.
Journal: Applied Economics
Pages: 1093-1107
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.866208
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866208
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1093-1107
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Maria Cervellati
Author-X-Name-First: Enrico Maria
Author-X-Name-Last: Cervellati
Author-Name: Riccardo Ferretti
Author-X-Name-First: Riccardo
Author-X-Name-Last: Ferretti
Author-Name: Pierpaolo Pattitoni
Author-X-Name-First: Pierpaolo
Author-X-Name-Last: Pattitoni
Title: Market reaction to second-hand news: inside the attention-grabbing hypothesis
Abstract:
This article investigates whether the
market reaction to second-hand information is due to price pressure or
information dissemination. We use the perspective of attention grabbing to
analyse the market reaction to the dissemination of analysts'
recommendations published in print media. This perspective is able to
explain the asymmetric market reaction to 'buy' and 'sell' advice, which
is difficult to rationalize within the price pressure hypothesis. We base
our empirical analysis on the content of a weekly column in the most
important Italian financial newspaper, which publishes past information
and analysts' recommendations on listed companies. Our findings show
asymmetric price and volume reactions on the publication day. Contrary to
previous evidence, we document a positive relationship between the number
of analysts quoted in the column and the price (volume) increase
associated with positive recommendations. Because the weekly columns seem
to simply attract investors' attention, with no additional new
information, observing a reaction positively related to the column's
salience (proxied by the number of quoted analysts) is natural. In
addition, we find that the market reaction is higher when the order size
is lower, i.e., when individual investors' trades constitute a higher
fraction of the total trading activity in the market.
Journal: Applied Economics
Pages: 1108-1121
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.866206
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866206
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1108-1121
Template-Type: ReDIF-Article 1.0
Author-Name: Julia Clapper
Author-X-Name-First: Julia
Author-X-Name-Last: Clapper
Author-Name: Steven B. Caudill
Author-X-Name-First: Steven B.
Author-X-Name-Last: Caudill
Title: Water quality and cottage prices in Ontario
Abstract:
We use hedonic analysis to show that water
clarity has a significant effect on lakefront property values in the Near
North Ontario, Canada. In this study, water clarity is measured by Secchi
disc reading. Based on two different dependent variables; sales price and
sales price per square foot, and the estimation of linear, log--linear and
log--log models, we find that water clarity does matter to lakefront
property buyers in the Near North, Ontario. In particular, our results
indicate that buyers are willing to pay about 2% more for each 1-foot
increase in water clarity or Secchi depth. This finding is consistent
across all of our specifications.
Journal: Applied Economics
Pages: 1122-1126
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.851778
File-URL: http://hdl.handle.net/10.1080/00036846.2013.851778
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1122-1126
Template-Type: ReDIF-Article 1.0
Author-Name: Ginny Ju-Ann Yang
Author-X-Name-First: Ginny Ju-Ann
Author-X-Name-Last: Yang
Author-Name: Horace Chueh
Author-X-Name-First: Horace
Author-X-Name-Last: Chueh
Author-Name: Chen-Hsun Lee
Author-X-Name-First: Chen-Hsun
Author-X-Name-Last: Lee
Title: Examining the theory of capital structure: signal factor hypothesis
Abstract:
The aim of this study was to explore how
various levels of information asymmetry affect the capital structure of
listed companies in Taiwan and China. Regression results over the past few
decades have indicated that the trade-off theory lacks explanatory power,
bringing into question the accuracy of the static trade-off theory and the
existence of an optimal capital structure. On the other hand, the
financial decisions of companies do not always appear consistent with the
pecking order theory. Building on the research of Chou et
al. (2011), this study sought to verify the signal factor
hypothesis, which combines the trade-off theory with the pecking order
theory.This study was the first one to employ the panel KPSS test with
sharp drifts, developed by Chang and Ranjbar (2012), as well as the
Fourier function to verify that an optimal capital structure does exist
for companies with more symmetric information, thereby establishing the
trade-off theory. Firms with information asymmetry show adverse selection
costs, which supports the pecking order theory and rejects the existence
of an optimal capital structure.
Journal: Applied Economics
Pages: 1127-1133
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.864040
File-URL: http://hdl.handle.net/10.1080/00036846.2013.864040
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1127-1133
Template-Type: ReDIF-Article 1.0
Author-Name: Fran篩s-Éric Racicot
Author-X-Name-First: Fran篩s-Éric
Author-X-Name-Last: Racicot
Author-Name: Raymond Th鯲et
Author-X-Name-First: Raymond
Author-X-Name-Last: Th鯲et
Title: Cumulant instrument estimators for hedge fund return models with errors in variables
Abstract:
We revisit the factors incorporated in
asset pricing models following the recent developments in financial
markets -- i.e., the rise of shadow banking and the change in the
transmission channel of monetary policy. We propose two versions of the
Fung and Hsieh (2004) hedge fund return model, especially an augmented
market model which accounts for the new dynamics of financial markets and
the procyclicality of hedge fund returns. We run these models with an
innovative Hausman procedure, tackling the measurement errors embedded in
the models factor loadings. Our empirical method also allows for
confronting the drawbacks of the instruments used to estimate hedge fund
asset pricing models.
Journal: Applied Economics
Pages: 1134-1149
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.868591
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868591
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1134-1149
Template-Type: ReDIF-Article 1.0
Author-Name: Su Zhou
Author-X-Name-First: Su
Author-X-Name-Last: Zhou
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Smooth structural breaks and the stationarity of the yen real exchange rates
Abstract:
This article examines and solves an
interesting paradox in the literature that the tests for purchasing power
parity (PPP) based on the yen real exchange rates (RERs) refute the PPP
hypothesis more often than those with other major currency-based RERs, and
the evidence is sensitive to the sample period used. Using a new empirical
methodology accounting for both nonlinearity and multiple smooth temporary
breaks in the data, we show that the puzzling finding is due to the
failure to take into account the long but temporary large rise and fall in
the yen RERs. The results illustrate that the yen RERs in the post-Bretton
Woods period are likely mean reverting with linear or nonlinear adjustment
toward large, long swing type of infrequent smooth temporary changes
around constant equilibrium values, supporting the validity of PPP and
resolving the paradox.
Journal: Applied Economics
Pages: 1150-1159
Issue: 10
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.868587
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868587
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Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1150-1159
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Title: PACking a punch: Political Action Committees and corruption
Abstract:
Political Action Committees (PACs) are
unique and prominent players in American politics. Yet, formal research on
some aspects of PACs is lacking. Using US data over the period 1970 to
2009, this research demonstrates that the growth in PACs is positively
associated with greater corruption. A 10% increase in the number of PACs
per capita would increase corruption by about 8%. Upon disaggregation,
corporate PACs, rather than labour PACs, are positively associated with
corruption. The effects of economic prosperity, government size and
population on US corruption are generally in line with the literature.
Journal: Applied Economics
Pages: 1161-1169
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.868589
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868589
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1161-1169
Template-Type: ReDIF-Article 1.0
Author-Name: Kerstin Bernoth
Author-X-Name-First: Kerstin
Author-X-Name-Last: Bernoth
Author-Name: Roberta Colavecchio
Author-X-Name-First: Roberta
Author-X-Name-Last: Colavecchio
Title: The macroeconomic determinants of private equity investment: a European comparison
Abstract:
A strong private equity (PE) market is a
cornerstone for commercialization and innovation in modern economies.
However, substantial differences exist in the relative amounts raised and
invested in PE across European countries. We investigate the macroeconomic
determinants of PE investment in Europe, focusing on the comparison
between Central and Eastern European (CEE) and Western European countries.
Our estimations are based on a data set running from 2001 to 2011 that
covers 16 countries. Applying robust estimation techniques, we identify a
'robust' set of determinants of PE activity in both regions. We find
similarities as well as differences in the driving forces of PE
investments in Western European and CEE countries. Our results suggest
that economic activity, the inflation rate, equity market capitalization,
unit labour costs, the unemployment rate as well the the institutional and
legal environment are significant determinants of PE activity.
Journal: Applied Economics
Pages: 1170-1183
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.866306
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866306
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1170-1183
Template-Type: ReDIF-Article 1.0
Author-Name: Zheng Yang
Author-X-Name-First: Zheng
Author-X-Name-Last: Yang
Author-Name: Anthony H. Tu
Author-X-Name-First: Anthony H.
Author-X-Name-Last: Tu
Author-Name: Yong Zeng
Author-X-Name-First: Yong
Author-X-Name-Last: Zeng
Title: Dynamic linkages between Asian stock prices and exchange rates: new evidence from causality in quantiles
Abstract:
This article applies the Granger causality
test in quantiles to investigate causal relations between stock returns
and exchange rate changes for nine Asian markets over the period 1 January
1997 to 16 August 2010. Our empirical results indicate that the quantile
causal relations vary across different quantiles and different periods.
Although the causal effects of exchange rate changes on stock returns (or
stock returns on exchange rate changes) are heterogeneous across
quantiles, the overall evidence suggests that most stock and foreign
exchange markets are negatively correlated. The result shows that there
are more bidirectional causal relations in accordance with this method
than the conventional least square (LS) estimation. The symmetry of these
quantile causal effects (the 'averaging effect') helps to explain why
conventional LS method usually obtains an insignificant result of
causality.
Journal: Applied Economics
Pages: 1184-1201
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.868590
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868590
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1184-1201
Template-Type: ReDIF-Article 1.0
Author-Name: James E. Payne
Author-X-Name-First: James E.
Author-X-Name-Last: Payne
Author-Name: Stephanie Miller
Author-X-Name-First: Stephanie
Author-X-Name-Last: Miller
Author-Name: Junsoo Lee
Author-X-Name-First: Junsoo
Author-X-Name-Last: Lee
Author-Name: Myeong Hyeon Cho
Author-X-Name-First: Myeong Hyeon
Author-X-Name-Last: Cho
Title: Convergence of per capita sulphur dioxide emissions across US states
Abstract:
This study examines the stochastic
conditional convergence of sulphur dioxide (SO2) emissions
using the Residual Augmented Least Squares--Lagrange Multiplier (RALS--LM)
unit root test with structural breaks. This procedure allows the data to
account for trend breaks and nonnormal errors that have been ignored or
deemphasized in previous studies. The study finds that per capita sulphur
dioxide emissions exhibits stochastic conditional convergence across US
states.
Journal: Applied Economics
Pages: 1202-1211
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.868588
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868588
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1202-1211
Template-Type: ReDIF-Article 1.0
Author-Name: Nadir Altinok
Author-X-Name-First: Nadir
Author-X-Name-Last: Altinok
Author-Name: Claude Diebolt
Author-X-Name-First: Claude
Author-X-Name-Last: Diebolt
Author-Name: Jean-Luc Demeulemeester
Author-X-Name-First: Jean-Luc
Author-X-Name-Last: Demeulemeester
Title: A new international database on education quality: 1965--2010
Abstract:
The aim of this article is to propose a
new database allowing a comparative evaluation of the relative performance
of schooling systems around the world. We measure this performance through
pupils' achievement in standardized tests. We merge all existing regional
and international student achievement tests by using a specific
methodology. When compared with other existing databases, our approach
innovates in several ways, especially by including regional student
achievement tests and intertemporal comparable indicators. We provide a
data set of indicators of quality of student achievement for 103
countries/areas in primary education and 111 countries/areas in secondary
education between 1965 and 2010.
Journal: Applied Economics
Pages: 1212-1247
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.868592
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868592
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1212-1247
Template-Type: ReDIF-Article 1.0
Author-Name: A. G. Walke
Author-X-Name-First: A. G.
Author-X-Name-Last: Walke
Author-Name: T. M. Fullerton
Author-X-Name-First: T. M.
Author-X-Name-Last: Fullerton
Title: Freight transportation costs and the thickening of the US--Mexico border
Abstract:
Border regulatory requirements and
administrative practices changed subsequent to the September 11, 2001
(9/11), terrorist attacks in the United States. Research in this study
examines the manners in which transportation cost data for merchandise
imports from Mexico behaved before and after 2001. Evidence is obtained
that confirms results earlier tabulated for imports from Canada. Empirical
results further indicate that, beyond freight cost changes, growth in the
value of imports from Mexico was disrupted by events associated with the
aftermath of 9/11.
Journal: Applied Economics
Pages: 1248-1258
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.870659
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870659
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1248-1258
Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Author-Name: Wenju Wang
Author-X-Name-First: Wenju
Author-X-Name-Last: Wang
Title: An analysis of Chinese government expenditure using dynamic binary panel data
Abstract:
In this article, we model the government
expenditure on the welfare change of general public by means of static and
dynamic binary response model for panel data. We analyse the effectiveness
of the total magnitude and the structure of the Chinese government
expenditure on the basis of its effects on the welfare of Chinese
citizens. We construct both the static and dynamic models. And we also do
a further analysis of the state dependence of the welfare change of
Chinese citizens by means of the survival analysis. The estimation results
imply that the total amount of the Chinese government expenditure is not
oversized but its allocation is not efficient. And expenditures in some
fields are not utilized efficiently.
Journal: Applied Economics
Pages: 1259-1266
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.870655
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870655
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1259-1266
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian C. H. Lei
Author-X-Name-First: Adrian C. H.
Author-X-Name-Last: Lei
Author-Name: Martin H. Y. Yick
Author-X-Name-First: Martin H. Y.
Author-X-Name-Last: Yick
Author-Name: Keith S. K. Lam
Author-X-Name-First: Keith S. K.
Author-X-Name-Last: Lam
Title: The effects of tax convexity on default and investment decisions
Abstract:
The objective of this article is to
examine how default and investment triggers change under different levels
of tax asymmetry when firms face nonlinear tax schedules. Under a convex
tax schedule, profits are taxed at a higher rate, while losses are taxed
(or rebated) at a lower rate, thus reducing the risk shared by the
government. This article presents a dynamic model based on the
contingent-claims framework to explore the impacts of tax convexity on the
triggers, and we find that the impacts vary significantly depending on
several countervailing forces. Tax convexity has a nonmonotonic
relationship with both the default and investment triggers, because of the
government's risk-sharing role. The default trigger is higher when tax
convexity increases, while the growth option exerts a counteracting effect
that lowers this trigger, creating an ambiguity in the investment trigger
when changing the level of tax asymmetry.
Journal: Applied Economics
Pages: 1267-1278
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.870653
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870653
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1267-1278
Template-Type: ReDIF-Article 1.0
Author-Name: Khaled Guesmi
Author-X-Name-First: Khaled
Author-X-Name-Last: Guesmi
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Title: Time-varying regional integration of stock markets in Southeast Europe
Abstract:
We investigate the dynamics of regional
financial integration and its determinants in the context of an ICAPM
accounting for the deviations from PPP as well as temporal variations in
both regional and local sources of risk. Using data from four major
countries of the Southeast Europe, our results support the validity of the
ICAPM and show that changes in the degree of regional integration are
explained principally by trade openness and stock market development
whatever the measure of currency risk. As market integration induces both
benefits and risks, our findings should have significant implications for
economic policies and market regulations.
Journal: Applied Economics
Pages: 1279-1290
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.870656
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870656
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1279-1290
Template-Type: ReDIF-Article 1.0
Author-Name: Jesse M. Cunha
Author-X-Name-First: Jesse M.
Author-X-Name-Last: Cunha
Author-Name: Ryan Sullivan
Author-X-Name-First: Ryan
Author-X-Name-Last: Sullivan
Author-Name: Melih Can
Author-X-Name-First: Melih
Author-X-Name-Last: Can
Author-Name: Huseyin Yalcinkaya
Author-X-Name-First: Huseyin
Author-X-Name-Last: Yalcinkaya
Title: Expedited citizenship for sale: estimating the effect of Executive Order 13269 on noncitizen military enlistments
Abstract:
This article estimates the effect of
offering an expedited citizenship application process to noncitizens for
joining the US military. Executive Order (EO) 13269, enacted in July of
2002, allowed noncitizens to apply for US citizenship immediately upon
joining the military, effectively reducing the waiting time that is
required to apply for citizenship from 3 years to 1 day. We identify
the effect of the policy by using administrative personnel data on the
universe of military enlistees between 1999 and 2010 along with a
difference-in-differences (DD) strategy that uses accessions amongst
citizens as the control group. Overall, we find no effect of the offer of
expedited citizenship on total accessions amongst noncitizens. However,
this overall null effect masks significant shifts of noncitizen
enlistments out of combat intensive services and into 'safer' services.
These results provide the first empirical evidence about this important,
and relatively costless, recruiting policy.
Journal: Applied Economics
Pages: 1291-1300
Issue: 11
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.870658
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870658
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:11:p:1291-1300
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Fuentes Castro
Author-X-Name-First: Daniel
Author-X-Name-Last: Fuentes Castro
Title: Evidences of maturity mismatching of loans in OECD housing markets between 1995 and 2008
Abstract:
The article focuses on maturity
mismatching of loans in OECD economies during the last housing boom (which
ended with the subprime mortgage crisis in 2007). Our model gives rise to
an indicator measuring how strong the incentives for speculation were. The
indicator is also used to estimate the influence of transaction costs and
demand-side subsidies on leverage. According to the model, the influence
of subsidies is likely to be limited compared to transaction costs, which
may play a significant role in containing incentives for maturity
mismatching. Some distinctive patterns can be deduced from a country by
country analysis.
Journal: Applied Economics
Pages: 1301-1311
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.870652
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870652
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1301-1311
Template-Type: ReDIF-Article 1.0
Author-Name: Y. Zhu
Author-X-Name-First: Y.
Author-X-Name-Last: Zhu
Author-Name: Z. Wu
Author-X-Name-First: Z.
Author-X-Name-Last: Wu
Author-Name: L. Peng
Author-X-Name-First: L.
Author-X-Name-Last: Peng
Author-Name: L. Sheng
Author-X-Name-First: L.
Author-X-Name-Last: Sheng
Title: Where did all the remittances go? Understanding the impact of remittances on consumption patterns in rural China
Abstract:
We focus on the impact of migrants'
remittances on consumption patterns in China. Using a large homogenous
sample of rural households surveyed in 2001 and 2004, we find that
remittances are spent on nonhousing consumption expenditures at the
margin, virtually dollar-for-dollar, when we instrument remittances and
local employed earnings using proxies of social networks. Our findings are
robust to intra-household division of labour and to fixed-effect for the
county in which the respondents are registered. These results imply that
rural households largely take remittances as permanent income and are
consistent with the prevalence of circular and repeat migration in China.
Journal: Applied Economics
Pages: 1312-1322
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.872764
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872764
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1312-1322
Template-Type: ReDIF-Article 1.0
Author-Name: Pin-te Lin
Author-X-Name-First: Pin-te
Author-X-Name-Last: Lin
Author-Name: Franz Fuerst
Author-X-Name-First: Franz
Author-X-Name-Last: Fuerst
Title: The integration of direct real estate and stock markets in Asia
Abstract:
Currently, there exists relatively little
research investigating the long-term association between stock and direct
real estate markets. Using appropriate transaction-based property indices,
this study focuses on the relationship between stock and direct real
estate markets in nine Asian countries from the period 1980 to 2012
through both linear and nonlinear cointegration techniques. We find
empirical evidence of linear cointegration of stock and property markets
in Taiwan, fractional cointegration in Singapore and Hong Kong and no
evidence of cointegration in China, Japan, Thailand, Malaysia, Indonesia
and South Korea. It is concluded that segmentation of property markets
from stock markets does not appear to be linked to the differences in the
maturity of national financial markets and that the differing degrees of
integration across Asia may instead be reflective of a range of factors
impacting upon the underlying economic structures in each country.
Journal: Applied Economics
Pages: 1323-1334
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.872763
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872763
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1323-1334
Template-Type: ReDIF-Article 1.0
Author-Name: Gordon Y. N. Tang
Author-X-Name-First: Gordon Y. N.
Author-X-Name-Last: Tang
Author-Name: Haomin Zhang
Author-X-Name-First: Haomin
Author-X-Name-Last: Zhang
Title: Stock return reversal and continuance anomaly: new evidence from Hong Kong
Abstract:
Using weekly data, this article conducts a
comprehensive analysis and presents new empirical evidences on the
short-term stock return reversal and continuance anomaly in the Hong Kong
stock market. We confirm that winner stocks behave differently from loser
stocks in that the return reversal phenomenon is pervasive within past
winner stocks only while past loser stocks tend to show weak return
continuance. The arbitrage strategy can earn significantly positive
contrarian profits, especially for small firms and illiquid stocks. The
anomaly varies across different industries and is also sensitive to the
market movement. Despite the existence of the anomaly, our results still
in general suggest that the Hong Kong stock market is weak-form efficient
because arbitrage trading costs would largely overwhelm the available
profits in most cases.
Journal: Applied Economics
Pages: 1335-1349
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.872767
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872767
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1335-1349
Template-Type: ReDIF-Article 1.0
Author-Name: Simona Rasciute
Author-X-Name-First: Simona
Author-X-Name-Last: Rasciute
Author-Name: Eric Pentecost
Author-X-Name-First: Eric
Author-X-Name-Last: Pentecost
Author-Name: Ben Ferrett
Author-X-Name-First: Ben
Author-X-Name-Last: Ferrett
Title: Firm heterogeneity in modelling foreign direct investment location decisions
Abstract:
This article investigates the probability
of the FDI location decisions of multinational enterprises using a mixed
logit panel data model, which is the most flexible discrete choice model.
We employ a three-level data set, which includes over 1100 FDI location
decisions into 13 alternative Central and Eastern European Countries
(CEECs) over an 11-year period. Our empirical results on the effect of
host country, industry and firm characteristics on the probability of
undertaking FDI in a particular location are significant and consistent
with the predictions of our theoretical model.
Journal: Applied Economics
Pages: 1350-1360
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.872760
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872760
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1350-1360
Template-Type: ReDIF-Article 1.0
Author-Name: Johannes M. Bauer
Author-X-Name-First: Johannes M.
Author-X-Name-Last: Bauer
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Aaron Morey
Author-X-Name-First: Aaron
Author-X-Name-Last: Morey
Title: Effects of economic conditions and policy interventions on OECD broadband adoption
Abstract:
The positive effects of broadband networks
and services on productivity and economic growth are well established.
Looking at broadband as an engine of economic prosperity, the OECD and its
member states are seeking to foster its widespread adoption. However,
which public policies best promote the adoption of broadband remains
controversial. This article contributes in two ways to this discussion. It
offers a comprehensive discussion of the factors that influence broadband
adoption and uses an econometric approach that is well-suited to overcome
the challenges of modelling broadband adoption. This framework allows
drawing more robust and nuanced policy recommendations.
Journal: Applied Economics
Pages: 1361-1372
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.872765
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872765
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1361-1372
Template-Type: ReDIF-Article 1.0
Author-Name: J. Ignacio Garc𫑐鲥z
Author-X-Name-First: J. Ignacio
Author-X-Name-Last: Garc𫑐鲥z
Author-Name: Marisa Hidalgo-Hidalgo
Author-X-Name-First: Marisa
Author-X-Name-Last: Hidalgo-Hidalgo
Author-Name: J. Antonio Robles-Zurita
Author-X-Name-First: J. Antonio
Author-X-Name-Last: Robles-Zurita
Title: Does grade retention affect students' achievement? Some evidence from Spain
Abstract:
Grade retention practices are at the
forefront of the educational debate. In this article, we measure the
effect of grade retention on Spanish students' achievement by using data
from Programme for International Student Assessment (PISA). We find that
grade retention has a negative impact on educational outcomes, but we
confirm the importance of endogenous selection which makes observed
differences between repeaters and nonrepeaters appear about 14% lower than
they actually are. The effect on scores of repeating is much smaller
(--10% of nonrepeaters' average) than the counterfactual reduction that
nonrepeaters would suffer had they been retained as repeaters (--24% of
their average). Furthermore, those who repeated a grade during primary
education suffered more than those who repeated a grade in secondary
school, although the effect of repeating at both times is, as expected,
larger.
Journal: Applied Economics
Pages: 1373-1392
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.872761
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872761
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1373-1392
Template-Type: ReDIF-Article 1.0
Author-Name: Marjorie L. Baldwin
Author-X-Name-First: Marjorie L.
Author-X-Name-Last: Baldwin
Author-Name: Chung Choe
Author-X-Name-First: Chung
Author-X-Name-Last: Choe
Title: Re-examining the models used to estimate disability-related wage discrimination
Abstract:
We examine how differences in model
specifications and econometric methods affect unexplained wage
differentials between workers with and without physical disabilities,
where the unexplained differentials are estimates of the potential effects
of disability-related wage discrimination. We apply an enhanced
decomposition method (Neuman and Oaxaca, 2004) to selectivity-corrected
wage equations to estimate potential discrimination effects. The
decomposition separates observed wage differentials into a part explained
by differences in characteristics that affect productivity and the
decision to work and an unexplained part potentially attributed to
discrimination. In addition to the functional limitation variables used to
control for the effects of disability on productivity, we add measures of
physical job demands, and interaction effects between functional
limitations and job demands, to the wage models to examine how estimates
of potential discrimination change. The interaction terms measure the
extent to which workers' physical limitations affect important job
functions. Data come from the 2004 SIPP merged to measures of job demands
from the Occupational Information Network (O*Net). With job demands and
interactions included in the model, approximately 10% of the observed wage
differential for men, and 20% for women, is potentially attributed to
discrimination. Changes in decomposition technique substantially alter the
estimates of discrimination effects.
Journal: Applied Economics
Pages: 1393-1408
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.872762
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872762
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1393-1408
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Barr貥
Author-X-Name-First: Christian
Author-X-Name-Last: Barr貥
Author-Name: Quentin Bonnard
Author-X-Name-First: Quentin
Author-X-Name-Last: Bonnard
Author-Name: V鲯nique Chossat
Author-X-Name-First: V鲯nique
Author-X-Name-Last: Chossat
Title: Are we at a turning point in the evolution of gastronomy? Paris: an exemplary case
Abstract:
Over the past few years, the landscape of
top-class gastronomy has empirically changed: some celebrity chefs are
returning their hard-won awards to instead provide low-cost food while
others work tirelessly to gain access to the inner circle of international
top-class restaurants. Things are changing, but the direction is unclear.
To analyse the situation, we took the case of French Parisian gastronomy
-- because it has been the main model for world gastronomy. Our study of
it focuses on the Michelin Guide selection, covering the 60-year period
1950--2012. We then applied multiple correspondence analysis to establish
the profiles of the Parisian restaurants and to find out whether these
profiles have evolved. This article shows that a turning point has clearly
been reached and that gastronomic pluralism is on the rise -- to the
detriment of the hegemony of elitist gastronomy.
Journal: Applied Economics
Pages: 1409-1419
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.875110
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875110
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1409-1419
Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Han Liu
Author-X-Name-First: Wei-Han
Author-X-Name-Last: Liu
Title: Optimal hedge ratio estimation and hedge effectiveness with multivariate skew distributions
Abstract:
This article proposes to use the three
multivariate skew distributions (generalized hyperbolic distribution,
multivariate skew normal distribution, and multivariate skew
Student-t distribution) for estimating the minimum
variance hedge ratio in a dynamic setting. Three criteria for measuring
hedge effectiveness are employed: hedging instrument effectiveness,
overall hedge effectiveness, and relative-to-optimal hedge ratio
effectiveness (RHRE). Three portfolios of spot and futures series are
formed for empirical analysis. The outcomes confirm that the three
multivariate skew distributions are more helpful in deciding the minimum
variance hedge ratio, especially the generalized hyperbolic distribution,
than the symmetrical normal and Student-t distributions.
This outperformance is significant especially at critical market moments
and it is indicated by three hedge effectiveness measures. This advantage
is held without the cost of lowering portfolio return. In addition, there
is speculation possibility existing in the portfolio hedged by the
traditional optimal hedge ratio and this potential can be detected
especially by RHRE.
Journal: Applied Economics
Pages: 1420-1435
Issue: 12
Volume: 46
Year: 2014
Month: 4
X-DOI: 10.1080/00036846.2013.875112
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875112
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Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1420-1435
Template-Type: ReDIF-Article 1.0
Author-Name: Zsolt Darvas
Author-X-Name-First: Zsolt
Author-X-Name-Last: Darvas
Author-Name: Balẳ Varga
Author-X-Name-First: Balẳ
Author-X-Name-Last: Varga
Title: Inflation persistence in central and eastern European countries
Abstract:
This article studies inflation persistence
with time-varying coefficient autoregressions for 12 central European
countries in comparison with the United States and the euro area. We find
that inflation persistence tends to be higher in times of high inflation.
Since the oil price shocks, inflation persistence has declined both in the
United States and the euro area. In most central and eastern European
countries, for which our study covers 1993--2012, inflation persistence
has also declined, with the main exceptions of the Czech Republic,
Slovakia and Slovenia, where persistence seems to be rather stable. Our
findings have implications for the conduct of monetary policy and for a
possible membership in the euro area. Among the two time-varying
coefficient methods we use, our results favour the flexible least squares
smoother over the Kalman smoother. We also conclude that the OLS estimate
of an autoregression is likely upward biased relative to the time-average
of time-varying parameters, when the parameters change.
Journal: Applied Economics
Pages: 1437-1448
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.875113
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875113
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1437-1448
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Jobert
Author-X-Name-First: Thomas
Author-X-Name-Last: Jobert
Author-Name: Fatih Karanfil
Author-X-Name-First: Fatih
Author-X-Name-Last: Karanfil
Author-Name: Anna Tykhonenko
Author-X-Name-First: Anna
Author-X-Name-Last: Tykhonenko
Title: Estimating country-specific environmental Kuznets curves from panel data: a Bayesian shrinkage approach
Abstract:
Designing an efficient global climate
policy turns out to be a difficult yet crucial task since there are
noteworthy cross-country differences in energy and carbon intensities. In
this article, the environmental Kuznets curve (EKC) hypothesis is tested
for carbon dioxide (CO2) emissions, and as a modelling
technique, the iterative Bayesian shrinkage procedure is employed to
handle the cross-country differences. The results suggest that first the
EKC hypothesis is rejected for 47 out of the 51 countries considered when
the heterogeneity in countries' energy efficiencies and cross-country
differences in the CO2 emissions trajectories are accounted
for; second, a classification of the results with respect to the
development levels of the countries concerned reveals that the emergence
of an overall inverted U-shaped curve is due to the fact that in
high-income countries increase in gross domestic product (GDP) decreases
emissions, while in low-income countries emissions and GDP are positively
correlated.
Journal: Applied Economics
Pages: 1449-1464
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.875111
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875111
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1449-1464
Template-Type: ReDIF-Article 1.0
Author-Name: Gonzalo Troncoso
Author-X-Name-First: Gonzalo
Author-X-Name-Last: Troncoso
Author-Name: Juan Carlos Mu
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Mu
Author-Name: Juan Carlos Ferrer
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Ferrer
Author-Name: Louis de Grange
Author-X-Name-First: Louis
Author-X-Name-Last: de Grange
Title: Assessing salesforce marginal productivity
Abstract:
Marginal productivity of salesforce
(excluding checkout clerks) in a retail store is difficult to assess. An
analytical model is presented here explaining this productivity using
salesforce workers per hour as the factor of production (the explanatory
variable) and sales transactions per hour as the level of production (the
explained variable). The model incorporates self-service transactions,
controls for various seasonal effects (time of day, day of the week, month
of the year) and generates solutions for in-store salesforce assignment
across opening hours and sales points. To control for possible endogeneity
between the transactions and salesforce size variables, instrumental
variables are employed in the calibration process. The model is calibrated
using data from a major retail chain based in Latin America both at the
storewide level and for groups of individual store departments. The
results corroborate the existence of diminishing returns to scale for the
workers per hour factor and a significant level of self-service
transactions in the total number of sales. The application of the model to
the stores supplying the data confirms the systematic understaffing
reported in the literature for the retail industry.
Journal: Applied Economics
Pages: 1465-1475
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.877575
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877575
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1465-1475
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: Does European regional competitiveness influence sports? An analysis of three sports
Abstract:
The main objective of this work was to
test European regional determinants of sports competitiveness. We studied
competitiveness in volleyball, basketball and handball. We developed a
theoretical model based on the model proposed by Bernard and Busse (2004)
to analyse the effect of regional institutions and sport environments that
can interfere with sports competitiveness. To test our model, we
constructed an enlarged database for all European NUTS2 since 1995, which
we analysed using panel data techniques (censored Tobit models). Our
results reveal that the regions that are able to maintain player
performance do so by persistent effort and external influences. These
factors contribute more to regional competitiveness than a region's
central location or political prominence.
Journal: Applied Economics
Pages: 1476-1489
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.877578
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877578
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1476-1489
Template-Type: ReDIF-Article 1.0
Author-Name: Farhang Niroomand
Author-X-Name-First: Farhang
Author-X-Name-Last: Niroomand
Author-Name: Massomeh Hajilee
Author-X-Name-First: Massomeh
Author-X-Name-Last: Hajilee
Author-Name: Omar M. Al Nasser
Author-X-Name-First: Omar M.
Author-X-Name-Last: Al Nasser
Title: Financial market development and trade openness: evidence from emerging economies
Abstract:
International trade is said to be the
engine of economic growth. Despite an enormous effort to explain this
phenomenon, the relationship between financial market development and
trade openness and integration into the world economy is still an enigma.
This article investigates the relationship between financial market
development and trade openness. To do this, we develop a long-run and
short-run model (a bounds testing approach to cointegration) for 18
emerging economies over the period 1980 to 2011. Estimates from all models
show that financial market development, including both the stock market
and the banking sector, has significant effect on trade openness in both
short-run and long-run phenomena in the majority of countries. Despite
many similarities among emerging economies, additional evidence suggests
that the link between either stock market development or banking sector
development with trade openness works via each country's specific
structure.
Journal: Applied Economics
Pages: 1490-1498
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.866207
File-URL: http://hdl.handle.net/10.1080/00036846.2013.866207
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1490-1498
Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Jeng-Yan Tsai
Author-X-Name-First: Jeng-Yan
Author-X-Name-Last: Tsai
Author-Name: Wei-Ming Hung
Author-X-Name-First: Wei-Ming
Author-X-Name-Last: Hung
Title: Assessing bank equity risk under Legacy Loan Program
Abstract:
We study the effects of purchasing
distressed loan on bank equity risk under the Legacy Loan Program (LLP),
in which the government is in partnership with private investors. The bank
may refuse LLP when its knock-out value is too low. When the bank decides
to participate in the LLP, the participation of a private investor
generates a decrease in bank interest margin and an increase in equity
risk, but the knock-out value with the LLP assistance generates an
increase in bank interest margin and a decrease in equity risk. Our
results suggest that the success of LLP depends critically on the
willingness of a weak bank to participate in it. However, the
participation of a private investor in LLP does not decrease the weak
bank's equity risk but poses instability to the banking system.
Journal: Applied Economics
Pages: 1499-1508
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.875109
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875109
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1499-1508
Template-Type: ReDIF-Article 1.0
Author-Name: Tamara de la Mata
Author-X-Name-First: Tamara
Author-X-Name-Last: de la Mata
Title: Does trade creation by social and business networks hold in services?
Abstract:
Recent literature on the border effect has
shown that the intensity of trade in goods is positively correlated with
the migration stocks between any pair of countries/regions. The number of
references for business networks is more limited, but they are also
related with a reduction on information costs. In this article we
investigate whether such a relation holds also for Spanish domestic trade
flows in consumer services. To this end, we use a gravity model rooted in
the Dixit--Stiglitz--Krugman theoretical framework and a unique data set
on interregional trade flows for some of the main tourism service sectors,
namely, accommodations and restaurants. Our industry-specific analysis
finds a large positive effect for restaurants but a more limited effect
for accommodations. Forces driving the demand in each sector explain this
result and suggest the idea that although social networks can act as a
substitute of firms in some sectors at the same time they can enhance
trade flows in other sectors. We perform the same kind of analysis with a
data set (obtained by a similar method) for domestic trade in goods and
discover a different response to social and business networks. Finally, we
treat the potential endogeneity by taking the instrumental-variable
approach of the Poisson pseudo-maximum likelihood estimator and thus
obtain consistent results.
Journal: Applied Economics
Pages: 1509-1525
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.877576
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877576
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1509-1525
Template-Type: ReDIF-Article 1.0
Author-Name: Minki Kim
Author-X-Name-First: Minki
Author-X-Name-Last: Kim
Author-Name: Hailey Hayeon Joo
Author-X-Name-First: Hailey Hayeon
Author-X-Name-Last: Joo
Title: What makes you grab low carb beers?
Abstract:
What makes people choose low-carbohydrate,
high-protein food (low-carb food), which is good for health but usually
tastes bad? Using panel data on US beer consumption in which each
consumption occasion is uniquely associated with various companion-based
consumption contexts and exposure levels to diet information, we analyse
the variations in consumers' preferences for low-carb food. The results
show that there exist considerable gender differences in the preference
variation under peer pressure. First, single females behave in a way they
dislike drinking low-carb beer in front of friends, spouses and
significant others. Second, male (both married and single) and married
females pretend to choose low-carb beer when accompanied by spouses or
significant others. Finally, the elasticity of demand for healthy food
with respect to news articles about low-carb diets is positive, yet with
substantial differences in the degree of elasticity across demographic
groups.
Journal: Applied Economics
Pages: 1526-1534
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.877572
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877572
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1526-1534
Template-Type: ReDIF-Article 1.0
Author-Name: Ray Bachan
Author-X-Name-First: Ray
Author-X-Name-Last: Bachan
Author-Name: Barry Reilly
Author-X-Name-First: Barry
Author-X-Name-Last: Reilly
Author-Name: Robert Witt
Author-X-Name-First: Robert
Author-X-Name-Last: Witt
Title: Team performance and race: evidence from the English and French national soccer teams
Abstract:
This study examines the performance of the
men's senior national soccer teams of England and France between the years
1996 and 2011. The article models team performance using an array of
match-specific variables including the racial composition of the starting
XI. We find no definitive evidence that the racial composition of the
national teams exerts an influence on match outcome for either country
over the period reviewed. In addition, while there is no statistical
support for the view that the identity of the England national team
manager is an important determinant of performance, there is mild evidence
that the converse is the case for France.
Journal: Applied Economics
Pages: 1535-1546
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.875108
File-URL: http://hdl.handle.net/10.1080/00036846.2013.875108
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1535-1546
Template-Type: ReDIF-Article 1.0
Author-Name: Pilar G-Fernᮤez-Aguado
Author-X-Name-First: Pilar
Author-X-Name-Last: G-Fernᮤez-Aguado
Author-Name: Antonio Partal-Ure
Author-X-Name-First: Antonio
Author-X-Name-Last: Partal-Ure
Author-Name: Antonio Trujillo-Ponce
Author-X-Name-First: Antonio
Author-X-Name-Last: Trujillo-Ponce
Title: Moving toward risk-based deposit insurance premiums in the European Union: the case of Spain
Abstract:
This article provides a scenario-based
analysis of how the European Union proposal for a new funding model for
deposit insurance systems (DISs) would affect the Spanish banking sector.
We examine the risk profiles of commercial banks, savings banks and credit
cooperatives over the period 2007 to 2011 and compare the contributions to
the deposit insurance fund (DIF) under the current flat-rate regime with
those that would have occurred under the new risk-sensitive system. We
find that a risk-based scheme could provide an incentive for sound
management by reducing the premiums for credit institutions with better
risk profiles. We also conclude that the proposed reform may help to
mitigate the moral hazard associated with larger credit institutions.
Journal: Applied Economics
Pages: 1547-1564
Issue: 13
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.877577
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877577
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Handle: RePEc:taf:applec:v:46:y:2014:i:13:p:1547-1564
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Patricio Samanez
Author-X-Name-First: Carlos Patricio
Author-X-Name-Last: Samanez
Author-Name: L鯠da Rocha Ferreira
Author-X-Name-First: L鯠
Author-X-Name-Last: da Rocha Ferreira
Author-Name: Carolina Caldas do Nascimento
Author-X-Name-First: Carolina Caldas
Author-X-Name-Last: do Nascimento
Author-Name: Let de Almeida Costa
Author-X-Name-First: Let
Author-X-Name-Last: de Almeida Costa
Author-Name: Claudio R. S. Bisso
Author-X-Name-First: Claudio R. S.
Author-X-Name-Last: Bisso
Title: Evaluating the economy embedded in the Brazilian ethanol--gasoline flex-fuel car: a Real Options approach
Abstract:
The introduction of the flex-fuel cars in
the Brazilian market in 2003 changed considerably the consumer
decision-making process. Prior to this date, it was necessary to choose
the automobile type only by gasoline or by ethanol fuel; today it is
possible to choose a car type with both fuel options. This flexibility
generates economic advantages for his owner, but what are the financial
benefits of a flex-fuel car in comparison with a car using only gasoline?
Geographically, where is the owner of the benefits from this flexibility
located? This article presents an empirical application of the Real
Options Theory in the analysis of the flex-fuel car option for five
geographic Brazilian regions: Northern, Northeastern, Central-Western,
Southeastern and Southern. The regional price differences as well as the
consumer preferences of these regions were met. For this purpose,
historical fuel prices were considered stochastic and following a Mean
Reverting Stochastic process. The prediction and option values were
generated by a Monte Carlo simulation. The results indicated that the
option embedded on the Brazilian flex-fuel car adds considerable value to
the owner in all regions and car models considered, with the Southeastern
Region receiving most benefits by the flex option.
Journal: Applied Economics
Pages: 1565-1581
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.877573
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877573
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1565-1581
Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Author-Name: Kenichi Suzuki
Author-X-Name-First: Kenichi
Author-X-Name-Last: Suzuki
Title: Who are the members of the international club?
Abstract:
This article proposes pragmatic methods
that incorporate recent contributions to public good theory to identify
the members of the international club and how they select new members.
This article also suggests simple applications to the recent problems in
international clubs such as the euro and NATO.
Journal: Applied Economics
Pages: 1582-1585
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.877574
File-URL: http://hdl.handle.net/10.1080/00036846.2013.877574
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1582-1585
Template-Type: ReDIF-Article 1.0
Author-Name: Yaobin Liu
Author-X-Name-First: Yaobin
Author-X-Name-Last: Liu
Title: Resource drag in an endogenous growth context: a panel data-based estimation with cross-sectional dependences and structural breaks
Abstract:
The article develops a resource drag model
based on the endogenous growth theory, and provides fresh empirical
evidence to estimate the drags for China by using the recently developed
panel model with both cross-sectional dependences and structural breaks.
The results indicate that there exists a long-run equilibrium relationship
between GDP and its inputs, and both the land and water resources have
significantly positive impacts on GDP except from some provinces after
allowing for cross-sectional heterogeneities and structure breaks. In
addition, the study employs the common correlated effects estimators to
investigate the resource drags at both the pooled and individual levels.
The result shows that the aggregate drag reduces annual growth rate by
about 0.016 percentage points in China as a whole while there exist
significant differences in both these disaggregate and aggregate drags for
the province-groups, suggesting there is a fair amount of geographic
clustering for them.
Journal: Applied Economics
Pages: 1586-1598
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.879283
File-URL: http://hdl.handle.net/10.1080/00036846.2013.879283
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1586-1598
Template-Type: ReDIF-Article 1.0
Author-Name: Michal Brzezinski
Author-X-Name-First: Michal
Author-X-Name-Last: Brzezinski
Title: Statistical inference for richness measures
Abstract:
Richness indices are distributional
statistics used to measure the incomes, earnings or wealth of the rich.
This article uses a linearization method to derive the sampling variances
for recently introduced distributionally sensitive richness measures when
estimated from survey data. The results are derived for two cases: (1)
when the richness line is known and (2) when it has to be estimated from
the sample. The proposed approach enables easy consideration of the
effects of a complex sampling design. Monte Carlo results suggest that the
proposed approach allows for reliable inference in case of 'concave'
richness indices, but that it is not satisfactory in case of 'convex'
richness measures. The standard bootstrap methods give similar results for
'concave' measures, but they are also unreliable for 'convex' indices. The
performance of the bootstrap inference can be improved in some cases using
a semi-parametric approach. The variance formulae are illustrated with a
comparison of wealth richness in Canada, Sweden, the United Kingdom and
the United States.
Journal: Applied Economics
Pages: 1599-1608
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.880106
File-URL: http://hdl.handle.net/10.1080/00036846.2014.880106
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1599-1608
Template-Type: ReDIF-Article 1.0
Author-Name: Muriel Fadairo
Author-X-Name-First: Muriel
Author-X-Name-Last: Fadairo
Author-Name: Cintya Lanchimba
Author-X-Name-First: Cintya
Author-X-Name-Last: Lanchimba
Title: Organizational choices and performance in distribution systems
Abstract:
This article studies the performance of
distribution networks as the result of a range of organizational choices.
The analytical part of the article surveys the vast literature devoted to
franchising and dual distribution. From this framework, several testable
propositions linking network performance to organizational choices are
derived. Three complementary criteria of performance are taken into
account: the internationalization rate, the expansion rate and the market
share. This article provides evidence for the simultaneity between these
performance criteria, analytically related as indicators of the network
commercial performance. Thus, the econometrical model is defined as a
system of simultaneous equations, free of endogeneity regarding the
explanatory variables. The estimations on recent French data obtained
using the three-stage least squares method provide robust results and show
that the type of distribution network, the number of company-owned outlets
in the network, the type of sector and the choice to manage several
networks simultaneously affect the performance.
Journal: Applied Economics
Pages: 1609-1623
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.872766
File-URL: http://hdl.handle.net/10.1080/00036846.2013.872766
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1609-1623
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Lasarte Navamuel
Author-X-Name-First: Elena
Author-X-Name-Last: Lasarte Navamuel
Author-Name: Fernando Rubiera Moroll
Author-X-Name-First: Fernando
Author-X-Name-Last: Rubiera Moroll
Author-Name: Dusan Paredes
Author-X-Name-First: Dusan
Author-X-Name-Last: Paredes
Title: City size and household food consumption: demand elasticities in Spain
Abstract:
Are food price elasticities different
across city sizes? The aim of this article is to estimate expenditure and
own-price elasticities for 10 aggregated food product groups using the
Spanish Household Budget Survey for the year 2010. These products are the
ones for which the survey provides information regarding prices and
quantities, thus allowing the application of an Almost Ideal Demand System
(AIDS) model with censored data. The estimation procedure allows not only
comparisons to be made among households with different levels of income,
but also the contribution of residence characteristics to variations in
demand. The results confirm that the size of the city in which the
household resides has a similar significant and relevant effect on
consumption patterns as family income level. This is especially clear with
own-price elasticities. In Spain, large central cities show a greater
response to price changes than smaller cities or rural peripheral areas.
Journal: Applied Economics
Pages: 1624-1641
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.868593
File-URL: http://hdl.handle.net/10.1080/00036846.2013.868593
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1624-1641
Template-Type: ReDIF-Article 1.0
Author-Name: Nina Ponikvar
Author-X-Name-First: Nina
Author-X-Name-Last: Ponikvar
Author-Name: Katja Zajc Kejžar
Author-X-Name-First: Katja
Author-X-Name-Last: Zajc Kejžar
Title: The puzzle on the causality of the productivity and employment growth: evidence from firm-level data
Abstract:
This article analyses the causality
between the firm's employment and productivity growth based on the
population of manufacturing firms registered in Slovenia in the 1994--2003
period. By using the system GMM estimator, we show that the
employment--productivity growth trade-off does not exist. Moreover, we
find significant complementarities between employment and productivity
growth, mostly driven by SMEs and firms from high-tech industries.
Accordingly, we argue that the job-creation policy and
productivity-promoting policy are complementary rather than trade-offs and
that policymakers should focus on the optimal policy mix that provides the
highest aggregate effect with regard to all growth aspects. Further,
significant differences among the factors of employment and productivity
growth suggest that job-creation policy measures are most successful when
targeted at younger export-oriented firms with high total factor
productivity levels and capital-intensive production. Meanwhile, the
outcome of policy measures aimed at promoting productivity increases with
a firm's capital intensity and size up to the threshold employment level
and with the intensity of market competition.
Journal: Applied Economics
Pages: 1642-1651
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.881974
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881974
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1642-1651
Template-Type: ReDIF-Article 1.0
Author-Name: Yasunori Yoshizaki
Author-X-Name-First: Yasunori
Author-X-Name-Last: Yoshizaki
Author-Name: Shigeyuki Haomori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Haomori
Title: The effects of oil price shocks on expenditure category CPI
Abstract:
In this study, we apply a two-block
structural vector autoregressive (VAR) model proposed by Kilian and Park
(2009) in order to investigate the dynamic effects of changes in oil price
on the expenditure category consumer price index (CPI) in the United
States and Japan. Our results confirm that each expenditure category price
index responded very differently to the same structural shock, and that
whether changes in oil price function as a positive stimulus or a negative
shock for the individual expenditure category prices also depends on the
kind of underlying shock that drives the changes in oil price. Finally,
our results also reveal that the manner in which changes in oil price
affect each expenditure category price differs between the United States
and Japan and these detailed-level differences may lead to aggregate-level
differences in the price response of both countries to changes in oil
price.
Journal: Applied Economics
Pages: 1652-1664
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.881977
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881977
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1652-1664
Template-Type: ReDIF-Article 1.0
Author-Name: Alan T. Wang
Author-X-Name-First: Alan T.
Author-X-Name-Last: Wang
Author-Name: Chengxue Yao
Author-X-Name-First: Chengxue
Author-X-Name-Last: Yao
Title: Risks of Latin America sovereign debts before and after the financial crisis
Abstract:
We investigate the financial determinants
of the return and volatility of sovereign CDS spread from six major Latin
American countries before and after the bankruptcy of Lehman Brothers.
Other than CBOE VIX index, we also find that global
factors including US Baa--Aaa default yield, TED spread
and US Treasury rate all contribute to the changes in these sovereign CDS
spread. Although global risk aversion (VIX) is a
significant determinant of sovereign debt spread, in the years after the
crisis, the emphasis has shifted towards short-term refinancing risk
(TED). Furthermore, the risk of Greek sovereign debt
crisis also transmitted Latin American CDS spreads immediately, but only
in the post-Lehman sub-period. These findings provide implications for
international bonds and credit derivatives trading strategies.
Journal: Applied Economics
Pages: 1665-1676
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.881976
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881976
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1665-1676
Template-Type: ReDIF-Article 1.0
Author-Name: Tsunao Okumura
Author-X-Name-First: Tsunao
Author-X-Name-Last: Okumura
Author-Name: Emiko Usui
Author-X-Name-First: Emiko
Author-X-Name-Last: Usui
Title: The effect of pension reform on pension-benefit expectations and savings decisions in Japan
Abstract:
Using the Japanese Study of Aging and
Retirement (JSTAR), which is a new Japanese panel survey of people aged 50
and over, we find that more Japanese in their early 50s expect their level
of public pension benefits to decline compared with those in their late
50s and early 60s. We also find that recent pension reforms that raised
the pensionable age affected the Japanese population by increasing the age
at which they expect to claim their benefits by almost the exact same
amount as the increase in the pensionable age. The reforms have also
decreased the population's expectations about receiving public pension
benefits, although this effect is not necessarily significant. We also
find evidence that anxiety about the public pension programme's future
increases private savings.
Journal: Applied Economics
Pages: 1677-1691
Issue: 14
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2013.870654
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870654
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Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1677-1691
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Josef Lamla
Author-X-Name-First: Michael Josef
Author-X-Name-Last: Lamla
Author-Name: Martin Straub
Author-X-Name-First: Martin
Author-X-Name-Last: Straub
Author-Name: Esther Mirjam Girsberger
Author-X-Name-First: Esther Mirjam
Author-X-Name-Last: Girsberger
Title: On the economic impact of international sport events: microevidence from survey data at the EURO 2008
Abstract:
Using firm-level data for more than 700
Swiss hotels and restaurants, we evaluate the economic impact of the EURO
2008 soccer championship in Switzerland. Although aggregated macrodata do
not reveal any sizable economic impact, we report an overall negative
effect based on the surveyed companies. Notably the reported effects of
the individual firms are very heterogeneous. For instance, hotels in
cities benefitted from the tournament as they were able to raise prices
and thereby increase sales. Looking at the long-run impact only a small
fraction of companies do believe in a positive effect. Interestingly, this
outlook does not depend on realized sales, but on the guest structure.
Journal: Applied Economics
Pages: 1693-1703
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.881972
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881972
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1693-1703
Template-Type: ReDIF-Article 1.0
Author-Name: Jae-Joon Han
Author-X-Name-First: Jae-Joon
Author-X-Name-Last: Han
Author-Name: Hongshik Lee
Author-X-Name-First: Hongshik
Author-X-Name-Last: Lee
Author-Name: Joonhyung Lee
Author-X-Name-First: Joonhyung
Author-X-Name-Last: Lee
Title: How and where to offshore: a productivity comparison at the firm level
Abstract:
Using recent survey data on South Korean
firms' strategies for sourcing intermediate goods from abroad, we
investigate whether there exists a productivity premium of offshoring by
considering organizational forms (insourcing versus outsourcing) and the
income level of offshored countries (North versus South) altogether. Thus,
we consider the following four offshoring types: outsourcing from South,
insourcing from South, outsourcing from North and insourcing from North.
Unlike previous studies, we give particular attention to the comparison
between outsourcing from North and insourcing from South and find that
firms outsourcing from North are more productive than firms sourcing from
their own affiliates in South. We offer three critical conditions to
incorporate our empirical findings into the standard firm heterogeneity
model: the fixed cost is higher for insourcing than for outsourcing and is
higher in North than in South, the headquarters receive a larger share of
the final revenue through insourcing than through outsourcing, and
sourcing from North guarantees better profitability (or a bigger share) in
the market for the headquarters than sourcing from South. Thus, this
article contributes to the literature by identifying a new productivity
order.
Journal: Applied Economics
Pages: 1704-1715
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.881975
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881975
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Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1704-1715
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher S. Brunt
Author-X-Name-First: Christopher S.
Author-X-Name-Last: Brunt
Author-Name: John R. Bowblis
Author-X-Name-First: John R.
Author-X-Name-Last: Bowblis
Title: Health IT adoption, productivity and quality in primary care
Abstract:
Within the last decade, there has been a
growing push towards the use of electronic medical records and health
information technology (IT) within primary care physician practices.
Despite financial subsidies, smaller practices remain reluctant to adopt
these information systems. Using a nationally representative survey of
physicians, this study explores the relationship between physician,
practice and area attributes and the adoption of health IT systems.
Controlling for these attributes, the analysis subsequently studies the
relationship between health IT, physician productivity and perceived
quality of care. It finds that smaller practices and physicians with lower
incomes are less likely to adopt health IT systems and that adoption
varies with the type of medical conditions the practice typically treats.
With regards to productivity, health IT adopters are more likely to see
fewer patients and spend a larger amount of time on each visit with
marginal increases in time on administrative tasks and no differences in
perceived ability to deliver quality health care.
Journal: Applied Economics
Pages: 1716-1727
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.884705
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884705
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Template-Type: ReDIF-Article 1.0
Author-Name: Anna P. I. Vong
Author-X-Name-First: Anna P. I.
Author-X-Name-Last: Vong
Author-Name: Duarte Trigueiros
Author-X-Name-First: Duarte
Author-X-Name-Last: Trigueiros
Title: Reversal in the relative performance of state- and legal person-owned companies during the Chinese split share structure reform
Abstract:
The split share structure reform was
started in 2005 with the object of re-designating state-related,
nontradable shares into tradable shares. The article compares the two
major forms of state ownership in China (direct or indirect ownership)
showing that, close to the reform period, companies directly held by the
state experience a significant increase in market performance relative to
indirectly held companies. Results suggest that investors' perception
about the worth of these two forms of state ownership may have suffered a
reversal, thus bringing to light value-related consequences ensuing from
protective schemes usual in China and elsewhere. The article also
addresses a recurrent pitfall relating to the use in empirical models of
fractions of the same total and shows that U-shaped patterns found in the
relationship between ownership and performance are transient rather than
stable.
Journal: Applied Economics
Pages: 1728-1750
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.881973
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881973
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Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1728-1750
Template-Type: ReDIF-Article 1.0
Author-Name: Anh Tuan Bui
Author-X-Name-First: Anh Tuan
Author-X-Name-Last: Bui
Author-Name: Mardi Dungey
Author-X-Name-First: Mardi
Author-X-Name-Last: Dungey
Author-Name: Cuong Viet Nguyen
Author-X-Name-First: Cuong Viet
Author-X-Name-Last: Nguyen
Author-Name: Thu Phuong Pham
Author-X-Name-First: Thu Phuong
Author-X-Name-Last: Pham
Title: The impact of natural disasters on household income, expenditure, poverty and inequality: evidence from Vietnam
Abstract:
Natural disasters are expected exacerbate
poverty and inequality, but little evidence exists to support the impact
at household level. This article examines the effect of natural disasters
on household income, expenditure, poverty and inequality using the Vietnam
Household Living Standard Survey in 2008. The effects of a natural
disaster on household income and expenditure, corrected for fixed effects
and potential endogeneity bias, are estimated at 6.9% and 7.1% declines in
Vietnamese household per capita income and expenditure, respectively.
Natural disasters demonstrably worsen expenditure poverty and inequality
in Vietnam, and thus should be considered as a factor in designing poverty
alleviation policies.
Journal: Applied Economics
Pages: 1751-1766
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.884706
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884706
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Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1751-1766
Template-Type: ReDIF-Article 1.0
Author-Name: Haichao Fan
Author-X-Name-First: Haichao
Author-X-Name-Last: Fan
Author-Name: Zhiwei Xu
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Xu
Title: Firm dynamics in news-driven business cycles: the role of endogenous survival rate
Abstract:
Evidences from the structural vector-error
correction model shows that the new business formation and stock prices
co-moves with output under news shocks. However, simply incorporating firm
dynamics into Jaimovich and Rebelo's (Jaimovich and Rebelo, 2009) model
cannot explain these empirical findings. We show that this problem can be
resolved by introducing endogenous survival rates for the new entrants.
Journal: Applied Economics
Pages: 1767-1777
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.884701
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884701
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Template-Type: ReDIF-Article 1.0
Author-Name: A. Anderson
Author-X-Name-First: A.
Author-X-Name-Last: Anderson
Title: Maximum likelihood ranking in racing sports
Abstract:
Most ranking methods used in racing sports
are based on the number of points earned in a series of races. In some
applications, this method will fail to provide an accurate ranking of
competitors based on ability. In particular, rankings will not accurately
reflect ability when competitors enter different numbers of races or when
the level of competition varies by race. Additionally, point-based
rankings are dependent on a subjective points scale. Three alternative
models of performance and corresponding maximum likelihood estimation
methods are presented that can be used to rank competitors and overcome
the shortcomings of point-based rankings. Two methods are based on
paired-comparisons among competitors and can be estimated using common
binary-choice regression methods; the other is based on the rank-ordered
logit model. These methods are valuable tools for stakeholders who need to
evaluate the relative abilities of competitors to efficiently allocate
resources. Application is demonstrated using results from the 2012 Formula
One season, and the results of the maximum likelihood methods are compared
to each other and the official point-based rankings.
Journal: Applied Economics
Pages: 1778-1787
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.884702
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884702
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Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1778-1787
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Hussey
Author-X-Name-First: Andrew
Author-X-Name-Last: Hussey
Author-Name: Alex Nikolsko-Rzhevskyy
Author-X-Name-First: Alex
Author-X-Name-Last: Nikolsko-Rzhevskyy
Author-Name: Jay Walker
Author-X-Name-First: Jay
Author-X-Name-Last: Walker
Title: AIDing contraception: HIV and recent trends in abortion
Abstract:
Using a difference-in-differences
estimation framework and state-level data, we investigate the potential
role of HIV/AIDS in contributing to declining abortion utilization in the
United States. Our results suggest that the perceived risk of HIV
contraction negatively affected unwanted pregnancies. Specifically, a 10%
increase in HIV incidence is associated with 0.34--1.1% fewer abortions
per live births, an effect that can account for at least one-tenth of the
sharp decline in abortions observed from the early 1980s to mid-1990s.
Journal: Applied Economics
Pages: 1788-1803
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.884700
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884700
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Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1788-1803
Template-Type: ReDIF-Article 1.0
Author-Name: M. Hakan Berument
Author-X-Name-First: M. Hakan
Author-X-Name-Last: Berument
Author-Name: Nildag Basak Ceylan
Author-X-Name-First: Nildag Basak
Author-X-Name-Last: Ceylan
Author-Name: Burak Dogan
Author-X-Name-First: Burak
Author-X-Name-Last: Dogan
Title: An interest-rate-spread-based measure of Turkish monetary policy
Abstract:
A coherent method to measure the
effectiveness of a monetary policy improves the monetary authority's
management capacity and renders the possibility of applying sound policies
prior to and during a crisis. The trend in employing complicated and
ambiguity-bearing unconventional monetary tools in the aftermath of the
2008 crisis has increased the value of such a method. The aim of this
article is to introduce a coherent and consistent monetary policy
evaluation method for Turkey. Accordingly, we suggest that innovations in
the spread between overnight interest rates and Treasury auction interest
rates are informative for exchange rate, output, and prices. Empirical
evidence for this identification reveals that positive innovation in
spread (implying a tight monetary policy measure) decreases output
temporarily, permanently decreases prices, and appreciates local currency.
This result is also robust to alternative specifications.
Journal: Applied Economics
Pages: 1804-1813
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.884703
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884703
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Handle: RePEc:taf:applec:v:46:y:2014:i:15:p:1804-1813
Template-Type: ReDIF-Article 1.0
Author-Name: Jos頃. Fari
Author-X-Name-First: Jos頃.
Author-X-Name-Last: Fari
Author-Name: Alberto L
Author-X-Name-First: Alberto
Author-X-Name-Last: L
Author-Name: Ana Martarcos
Author-X-Name-First: Ana
Author-X-Name-Last: Martarcos
Title: Assessing the impact of domestic outsourcing and offshoring on productivity at the firm level
Abstract:
The purpose of this article is to
investigate the effects of domestic and foreign sourcing on firm-level
productivity. We develop a simple framework that permits the introduction
of both domestic outsourcing and offshoring in a conventional production
function. We find that the decision to outsource has a positive impact on
the level of productivity as it permits the relocation of parts of the
production process to external suppliers. Furthermore, there is a positive
impact on output resulting from domestic outsourcing and offshoring like
any other input.
Journal: Applied Economics
Pages: 1814-1828
Issue: 15
Volume: 46
Year: 2014
Month: 5
X-DOI: 10.1080/00036846.2014.884704
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884704
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Template-Type: ReDIF-Article 1.0
Author-Name: Justin A. Lee
Author-X-Name-First: Justin A.
Author-X-Name-Last: Lee
Author-Name: Steven B. Caudill
Author-X-Name-First: Steven B.
Author-X-Name-Last: Caudill
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Shine bright like a diamond: a hedonic model of grading and pricing an experience good
Abstract:
Diamonds are generally evaluated on the
basis of sensory characteristics, such as carat (weight), colour, clarity
and cut. However, given the experience goods nature of diamonds, few
consumers grasp how the sensory characteristics of these stones are
evaluated by the gemological grading laboratories that independently issue
diamond reports. This study extends prior research by determining whether
diamonds graded by certain gemological laboratories are subject to pricing
premiums or discounts in online retail markets. Regression models
employing a sample of 169 483 real-time diamond offerings from online
diamond retailers (e.g. Blue Nile, James Allen and Adiamor) find
significant price discounts attributable to diamonds graded by the
European Gemological Laboratory USA in relation to diamonds graded by the
Gemological Institute of America (GIA) and significant price premiums
attributable to diamonds graded by the American Gem Society in relation to
diamonds graded by the GIA.
Journal: Applied Economics
Pages: 1829-1838
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.884707
File-URL: http://hdl.handle.net/10.1080/00036846.2014.884707
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Template-Type: ReDIF-Article 1.0
Author-Name: Carla Blazquez-Fernandez
Author-X-Name-First: Carla
Author-X-Name-Last: Blazquez-Fernandez
Author-Name: David Cantarero
Author-X-Name-First: David
Author-X-Name-Last: Cantarero
Author-Name: Patricio Perez
Author-X-Name-First: Patricio
Author-X-Name-Last: Perez
Title: Disentangling the heterogeneous income elasticity and dynamics of health expenditure
Abstract:
In this article, we empirically study the
impact of per capita income on health-care expenditure and its dynamics
over time in a sample of 14 OECD countries for the period 1971 to 2009. A
simple model, built upon one developed by Newhouse (1977), suggests that
health care is a necessity in the short run but it cannot be rejected to
be a luxury good in the long run. Our findings provide strong empirical
evidence that a year's health expenditure is conditioned by the previous
one. Interestingly, our results reveal increasing income inelasticity over
time along with huge heterogeneity across countries. Finally, this article
supports the hypothesis of conditional convergence in health-care spending
among countries. In designing policies which facilitate the sustainability
of national health systems, we emphasize that ceteris paribus the greater
the participation of public health, the lower the growth rate of health
spending. High share of children and elderly over working age population
opposite influences. We also provide evidence that technological progress
could reduce the long-run income elasticity for health care, which in turn
threaten the sustainability of health-care systems.
Journal: Applied Economics
Pages: 1839-1854
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.887197
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887197
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Template-Type: ReDIF-Article 1.0
Author-Name: Weiwei Weng
Author-X-Name-First: Weiwei
Author-X-Name-Last: Weng
Author-Name: Fanzheng Yang
Author-X-Name-First: Fanzheng
Author-X-Name-Last: Yang
Title: The impact of social identity on trust in China: experimental evidence from cross-group comparisons
Abstract:
Social identity tends to bias decision
making in favour of in-group members with whom one shares a common social
membership. This article investigates the trust behaviour of mainland
Chinese when interacting with nonmainlanders in a two-party
decision-making situation. Our experimental results reveal that, relative
to their Hong Kong brethren who tend to be insensitive to their potential
partner's background of origin, the decisions of mainland Chinese are
significantly impacted by sharing a common background. This suggests
mistrust may limit the effectiveness of China's policy of promoting
international cooperation.
Journal: Applied Economics
Pages: 1855-1860
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.887196
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887196
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Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1855-1860
Template-Type: ReDIF-Article 1.0
Author-Name: Marizah Minhat
Author-X-Name-First: Marizah
Author-X-Name-Last: Minhat
Author-Name: Mazni Abdullah
Author-X-Name-First: Mazni
Author-X-Name-Last: Abdullah
Title: Executive compensation in government-linked companies: evidence from Malaysia
Abstract:
The aim of this study was to explore the
characteristics of executive pay, equity ownership incentives and
pay--performance relationship in government-controlled firms. Data were
hand-collected from the annual reports of 179 companies listed on Bursa
Malaysia. The results show that executive pay is lower in
government-linked companies. Positive pay--performance relationship is
also not evident for this category of firms, which indicates that their
executives were largely guaranteed with certain level of pay irrespective
of performance. The level of equity ownership incentives provides the
executives in government-controlled firms with very little incentive to
produce effort that can improve firm performance. Overall, our findings
are consistent with the inefficient pay hypothesis developed in this
study.
Journal: Applied Economics
Pages: 1861-1872
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.887192
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887192
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Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1861-1872
Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Title: Money demand income elasticity in advanced and developing countries: new evidence from meta-analysis
Abstract:
This article extends the meta-analysis
presented in Knell and Stix (2005, 2006) to investigate the possible
sources of variations in empirical findings about the income elasticity of
money demand in advanced and developing countries. In the case of advanced
countries, we find that the income elasticities of money demand are
significantly higher if broader definitions of the monetary aggregates are
used. In addition, financial reforms and wealth seem to have significantly
reduced the estimates of the income elasticity. However, we achieved quite
different findings for the developing countries. It appears that the
broader definitions of monetary aggregates seem to produce income
elasticity estimates that are only marginally higher than the narrower
aggregates. While the wealth (financial reform) impacts on income
elasticity are statistically insignificant (weakly significant), both
seems to have reduced the income elasticity estimates only marginally.
Moreover, some contrasting results between advanced and developing
countries are also attained with respect to the proxies of cost of holding
money.
Journal: Applied Economics
Pages: 1873-1882
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.887195
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887195
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Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1873-1882
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Blanchard
Author-X-Name-First: Pierre
Author-X-Name-Last: Blanchard
Author-Name: Jean-Pierre Huiban
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Huiban
Author-Name: Claude Mathieu
Author-X-Name-First: Claude
Author-X-Name-Last: Mathieu
Title: The shadow of death model revisited with an application to French firms
Abstract:
This article provides an empirical model
of the shadow of death in which the exit probability of a firm depends on
the firm's productive performance and the firm's level of sunk costs,
which are viewed as barriers to exit. The shadow of death effect is
treated by assuming a relationship between the propensity to exit and both
the contemporaneous and lagged values of efficiency and sunk costs. To
estimate the unobserved productive efficiency, we use the Ackerberg
et al. (2006) estimator extended by the addition of a
correction for selection bias. We use an unbalanced sample of
approximately 100 000 French firms over the period 1997 to 2002. Our
results indicate that the probability of exit is negatively affected by
unobserved individual efficiency and the level of sunk costs. The shadow
of death effect applies mainly in manufacturing, where both productive
efficiency and sunk costs decrease during several years before exit. In
service sectors, the exit process seems to occur more suddenly.
Journal: Applied Economics
Pages: 1883-1893
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2013.859376
File-URL: http://hdl.handle.net/10.1080/00036846.2013.859376
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Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1883-1893
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Ignacio Gimenez-Nadal
Author-X-Name-First: Jose Ignacio
Author-X-Name-Last: Gimenez-Nadal
Author-Name: Almudena Sevilla
Author-X-Name-First: Almudena
Author-X-Name-Last: Sevilla
Title: Total work time in Spain: evidence from time diary data
Abstract:
Using detailed time-use data from 2002--03
and 2009--10 for Spain, we analyse changes in the time-allocation
decisions of the Spanish population, with a focus on the time devoted to
total work. Consistent with prior literature, we document that the concept
of 'iso-work' (e.g. the time devoted to total work by gender is equal)
does not hold in societies with stringent gender roles, such as Spain.
Women devote more time to total work than men, and this difference has
increased throughout the period studied by 2 hours per week. The relative
increase in total work for women compared to men can be explained by a
relative increase in market work of 8 hours per week, coupled with a
relative decrease in nonmarket work of 6 hours per week, which have led
Spanish women to devote, relatively, 2 fewer hours to leisure per week in
2009--10, compared to 2002--03. We propose social norms as a potential
explanation of these empirical findings. By uncovering how individuals
allocate their time inside and outside the market over a period of time,
our results may improve our understanding of the dynamics of economic
change and welfare.
Journal: Applied Economics
Pages: 1894-1909
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.887194
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887194
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Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1894-1909
Template-Type: ReDIF-Article 1.0
Author-Name: Aida Isabel Tavares
Author-X-Name-First: Aida Isabel
Author-X-Name-Last: Tavares
Title: Health insurance and lifestyles
Abstract:
This article contributes to the discussion
surrounding the existence of ex
ante moral hazard and propitious selection in a
voluntary private health insurance scenario. Moreover, it provides an
estimation of the determinants of lifestyle choices and of private health
insurance demand. A multivariate probit is estimated for health insurance
demand and lifestyle decisions to take into account the potential
endogeneity of these decisions. The results indicate that there is
evidence of ex
ante moral hazard in deciding to do sports and eating
healthy snacks. Hence, no propitious selection has been found for these
decisions. Another relevant result shows that there is no individual
heterogeneity for the lifestyle choices, except for smoking, and private
health insurance choice. Evidence from the results also supports the idea
that there are nonobservable variables playing a role in the lifestyle
decisions. These results provide some directions for policymakers, such as
the promotion of precautionary behaviours and the use of implicit
lifestyle drivers to promote healthy choices by people.
Journal: Applied Economics
Pages: 1910-1923
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.889803
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889803
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Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1910-1923
Template-Type: ReDIF-Article 1.0
Author-Name: I. M. Dobbs
Author-X-Name-First: I. M.
Author-X-Name-Last: Dobbs
Author-Name: A. D. Miller
Author-X-Name-First: A. D.
Author-X-Name-Last: Miller
Title: Inducing risk preferences in multi-stage multi-agent laboratory experiments
Abstract:
Though there has been some debate over the
practical efficacy of using binary lotteries for controlling risk
preferences in experimental environments, the question of its theoretical
validity within the contexts it is often used, namely multi-stage
multi-agent settings, has not been addressed. Whilst the original proof of
its validity featured a single-agent single-stage context, its practical
use has seen a wide range of implementations. Practitioners have
implicitly assumed that whenever the setting and form of implementation
they have chosen deviates from the original single-agent single-period
proof, it remains theoretically valid. There has been virtually no debate
in the practitioner literature on the theoretical validity of binary
lotteries in a more general context, or on whether the form of
implementation matters. The current article addresses these questions,
establishes limitations on validity and suggests some design principles
for future implementation of binary lotteries for the purpose of
controlling risk preferences.
Journal: Applied Economics
Pages: 1924-1939
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.889801
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889801
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Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1924-1939
Template-Type: ReDIF-Article 1.0
Author-Name: C. Spulbăr
Author-X-Name-First: C.
Author-X-Name-Last: Spulbăr
Author-Name: M. Niţoi
Author-X-Name-First: M.
Author-X-Name-Last: Niţoi
Title: Determinants of bank cost efficiency in transition economies: evidence for Latin America, Central and Eastern Europe and South-East Asia
Abstract:
In this study, we adopt Wang's (2002)
heteroscedastic stochastic frontier model, which allows us to investigate
bank cost efficiency and to measure the marginal effects of some variables
on both the level and the variability of inefficiency. In recent years,
the financial crisis has significantly affected the banking systems of the
transition countries. Hence, the efficiency is of major importance for the
stability of the banks. Regarding the determinants of efficiency, we find
evidence that banks that follow a more cautious strategy, characterized by
lower risk appetite and average expectations on profitability, have higher
cost efficiency. We also find that traditional deposit-taking and
loan-making still remain the most efficient activity of the banks.
Additionally, the results showed that a higher Gross Domestic Product
growth rate implies an increase in the inefficiency level, indicating an
unsustainable bank management behaviour, which in periods of economic
growth adopts policies that can generate inefficiency in order to gain
market share and to obtain higher bonuses. Country cost efficiency results
show significant differences. The banking systems in transition countries
in South Eastern Asia appear to have a higher cost efficiency level. Also,
the effects of the financial crisis were less significant in this region.
Journal: Applied Economics
Pages: 1940-1952
Issue: 16
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.889806
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889806
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Handle: RePEc:taf:applec:v:46:y:2014:i:16:p:1940-1952
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Erik Bohlin
Author-X-Name-First: Erik
Author-X-Name-Last: Bohlin
Author-Name: Paitoon Kraipornsak
Author-X-Name-First: Paitoon
Author-X-Name-Last: Kraipornsak
Author-Name: Thien Tran
Author-X-Name-First: Thien
Author-X-Name-Last: Tran
Title: The determinants of prices in the FCC's 700 MHz spectrum auction
Abstract:
This article examines the prices paid for
700 MHz licenses in recent Federal Communications Commission auctions.
Econometric modelling confirms the presence of economies of scale and
scope in wireless spectrum valuations. That is, higher prices are recorded
for areas with large populations, whilst lower prices are realized for
geographically large areas. Also, smaller geographic license areas appear
to meet bidders' demand more effectively, and licenses in areas with high
incomes are sold at higher prices. Not surprisingly, more strict
deployment requirements and the presence of harmful technical interference
reduce prices. Also, paired spectrum receives higher prices than unpaired
spectrum. Interestingly, high minimum opening bids and upfront deposits
are associated with higher prices. Finally, competitive bidding places
upward pressure on prices.
Journal: Applied Economics
Pages: 1953-1960
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.889807
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889807
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1953-1960
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Alice Kones
Author-X-Name-First: Alice
Author-X-Name-Last: Kones
Title: Real and nominal effective exchange rates of African countries during 1971Q1--2012Q4
Abstract:
One of the macro variables that are
included in most models is the exchange rate. Overall performance of a
country's exchange rate is measured by changes in nominal or real
effective exchange rate (REER). These rates are constructed and published
mostly for industrial countries by international organizations. Less
developed countries have received little attention. In this article, the
two rates are constructed for 21 African countries using quarterly data
over the period 1971Q1--2012Q4. As an application, we use the REERs to
show that even in Africa the movements of the real effective rates follow
a nonlinear path.
Journal: Applied Economics
Pages: 1961-1984
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.889805
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889805
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1961-1984
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Author-Name: Sucharita Ghosh
Author-X-Name-First: Sucharita
Author-X-Name-Last: Ghosh
Author-Name: Steven Yamarik
Author-X-Name-First: Steven
Author-X-Name-Last: Yamarik
Title: Does the Confucius institute impact international travel to China? A panel data analysis
Abstract:
This article examines the impact of
Confucius Institutes on inbound travel to China. We estimate a panel
gravity model of inbound tourism flows to China between 2004 and 2010. We
use a Poisson pseudo-maximum likelihood estimator to control for
heteroscedasticity endemic in gravity models (Santos Silva and Tenreyro,
2006). We find that the presence of Confucius Institute(s) in the source
country increases overall tourism in general and business and worker
tourists in particular.
Journal: Applied Economics
Pages: 1985-1995
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.889802
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889802
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1985-1995
Template-Type: ReDIF-Article 1.0
Author-Name: Jacob A. Bikker
Author-X-Name-First: Jacob A.
Author-X-Name-Last: Bikker
Author-Name: Thijs Knaap
Author-X-Name-First: Thijs
Author-X-Name-Last: Knaap
Author-Name: Ward E. Romp
Author-X-Name-First: Ward E.
Author-X-Name-Last: Romp
Title: Measuring and explaining implicit risk sharing in defined benefit pension funds
Abstract:
This article investigates responses to
changes in solvency by occupational pension funds using a unique panel
data set containing the balance sheets of all registered pension funds in
the Netherlands over a period of 13 years (1993--2005). A fixed discount
rate for liabilities in the supervisory framework allows us to measure the
response of pension funds to solvency shocks. We find that pension rights
are expanded, by e.g. indexation, or limited, by for instance setting the
pension premium over its actuarially fair price, in line with the funding
ratio but that the pension funds' response function exhibits two sharp and
significant behavioural breaks, close to the minimum funding ratio of 105%
and the target ratio of around 125%. We further find that large funds and
grey funds are relatively generous to current participants.
Journal: Applied Economics
Pages: 1996-2009
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.889804
File-URL: http://hdl.handle.net/10.1080/00036846.2014.889804
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:1996-2009
Template-Type: ReDIF-Article 1.0
Author-Name: Nobuhiro Hosoe
Author-X-Name-First: Nobuhiro
Author-X-Name-Last: Hosoe
Title: Japanese manufacturing facing post-Fukushima power crisis: a dynamic computable general equilibrium analysis with foreign direct investment
Abstract:
The Great East Japan Earthquake and the
subsequent tsunami that hit and severely damaged the Fukushima Daiichi
Nuclear Power Station resulted indirectly in the shutdown of most of the
nuclear power plants in Japan. To compensate for the lost nuclear power
supply, more fossil fuels were used. People became concerned that this
could be disadvantageous for domestic manufacturing industries and
accelerated their offshoring to Asia, especially China, through foreign
direct investment (FDI). We used a world trade computable general
equilibrium (CGE) model with endogenous FDI from Japan to China to
quantify the impact of the power crisis on the Japanese manufacturing
sectors. We found that the power crisis as well as FDI would adversely
affect several sectors that use power intensively, but would benefit the
transportation equipment (TEQ), electric equipment (EEQ) and machinery
sectors, despite the common expectation that these sectors would undergo a
so-called 'hollowing-out.'
Journal: Applied Economics
Pages: 2010-2020
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.892198
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892198
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2010-2020
Template-Type: ReDIF-Article 1.0
Author-Name: Karel Hrazdil
Author-X-Name-First: Karel
Author-X-Name-Last: Hrazdil
Author-Name: Kim Trottier
Author-X-Name-First: Kim
Author-X-Name-Last: Trottier
Author-Name: Ray Zhang
Author-X-Name-First: Ray
Author-X-Name-Last: Zhang
Title: An intra- and inter-industry evaluation of three classification schemes common in capital market research
Abstract:
We compare the Standard Industry
Classification (SIC), the North American Industry Classification System
(NAICS) and the Global Industry Classification Standard (GICS) schemes in
their effectiveness to group stocks with similar operating
characteristics. We are the first to analyse and compare individual
functional category levels within and across each industry classification
and test whether the three industry classifications show significant
improvement in homogeneity with finer industry partitions across a wide
range of research applications. Our results suggest that the GICS system
offers advantages over the other two systems in grouping firms across all
its levels of industry categories and across different application schemes
common to capital market research. However, the SIC and NAICS offer
additional advantages across their finest industry partitions. Our study
has important implications for users of industry classifications in
various financial and economic analyses, research settings and regulatory
contexts.
Journal: Applied Economics
Pages: 2021-2033
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.892200
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892200
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2021-2033
Template-Type: ReDIF-Article 1.0
Author-Name: Abhinav Sacheti
Author-X-Name-First: Abhinav
Author-X-Name-Last: Sacheti
Author-Name: Ian Gregory-Smith
Author-X-Name-First: Ian
Author-X-Name-Last: Gregory-Smith
Author-Name: David Paton
Author-X-Name-First: David
Author-X-Name-Last: Paton
Title: Uncertainty of outcome or strengths of teams: an economic analysis of attendance demand for international cricket
Abstract:
A significant body of theoretical
literature has argued that popular interest in sporting contests between
teams is heavily influenced by how difficult it is to predict the result
ex-ante. Empirical research has, however, been unable to
reach a consensus on the magnitude of uncertainty of outcome on demand. In
this article, we seek to resolve this impasse by distinguishing between
uncertainty of outcome in the short run and uncertainty of outcome in the
long run. We also show that it is important to control for the independent
effect of absolute team strength when testing the uncertainty of outcome
hypothesis. Using data on over 380 Test cricket matches played in England,
Australia and New Zealand since 1980, we find that short-run uncertainty
of outcome has a significant impact on attendance demand and that absolute
team strength has better explanatory power for attendance demand than does
long-run uncertainty of outcome. Our results suggest some policy
implications for the management and organization of international cricket.
Journal: Applied Economics
Pages: 2034-2046
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.892203
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892203
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2034-2046
Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Lieh Huang
Author-X-Name-First: Yu-Lieh
Author-X-Name-Last: Huang
Title: Testing Markov switching models
Abstract:
In this article, we propose a new test for
Markov switching models. Unlike the tests in the existing literature (e.g.
Hansen, 1992; Garcia, 1998; Cho and White, 2007), we focus on testing the
null of two regimes, instead of one single regime, in a switching
framework. To implement our test, we propose a Markov switching model with
absorbing states and examine whether the absorption probabilities are
close to the boundary of the parameter space. We exploit recent advances
by Andrews (2001) and conduct inference in the proposed model.
Journal: Applied Economics
Pages: 2047-2051
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.892201
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892201
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2047-2051
Template-Type: ReDIF-Article 1.0
Author-Name: Michał Brzoza-Brzezina
Author-X-Name-First: Michał
Author-X-Name-Last: Brzoza-Brzezina
Author-Name: Jacek Kotłowski
Author-X-Name-First: Jacek
Author-X-Name-Last: Kotłowski
Title: Measuring the natural yield curve
Abstract:
We generalize the concept of the natural
rate of interest (Laubach and Williams, 2003; Woodford, 2003) by defining
and estimating the natural yield curve (NYC) -- the term structure of
natural interest rates. Our motivation stems i.a. from the observation
that at times when central banks attempt to directly affect long-term
interest rates (e.g. via quantitative easing) the gap between the
short-term real and natural rate is no more a good indicator of the
monetary policy stance. We estimate the NYC on US data, document its main
properties and show i.a. that in the period 2008 to 2011 the NYC allows to
better capture the US monetary policy stance than the short-term natural
rate.
Journal: Applied Economics
Pages: 2052-2065
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2013.829204
File-URL: http://hdl.handle.net/10.1080/00036846.2013.829204
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2052-2065
Template-Type: ReDIF-Article 1.0
Author-Name: Philipp Doerrenberg
Author-X-Name-First: Philipp
Author-X-Name-Last: Doerrenberg
Author-Name: Andreas Peichl
Author-X-Name-First: Andreas
Author-X-Name-Last: Peichl
Title: The impact of redistributive policies on inequality in OECD countries
Abstract:
Due to behavioural effects triggered by
redistributional interventions, it is still an open question whether
government policies are able to effectively reduce income inequality. We
contribute to this research question by using different country-level data
sources to study inequality trends in OECD countries since 1980. We first
investigate the development of inequality over time before analysing the
question of whether governments can effectively reduce inequality.
Different identification strategies, using fixed effects and instrumental
variables models, provide some evidence that governments are capable of
reducing income inequality despite countervailing behavioural responses.
The effect is stronger for social expenditure policies than for
progressive taxation.
Journal: Applied Economics
Pages: 2066-2086
Issue: 17
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.892202
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892202
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Handle: RePEc:taf:applec:v:46:y:2014:i:17:p:2066-2086
Template-Type: ReDIF-Article 1.0
Author-Name: Georg V. Lehecka
Author-X-Name-First: Georg V.
Author-X-Name-Last: Lehecka
Title: Have food and financial markets integrated?
Abstract:
This article analyses comovements and
discusses possibly greater market integration between aggregate food
commodity and stock prices in the period 1990 to 2012. Return
correlations, price return distributions, cointegration and
Granger-causalities are tested in subsamples on monthly FAO Food Price
Index and MSCI World Stock Market Index. Empirical results suggest that
while there is only weak indication of greater comovements concurrent with
structural changes such as changed agricultural policies, new demand due
to growth in emerging markets and energy mandates and the financialization
of food markets since the early 2000s, they did start to increase
substantially in particular during the financial stress of the Lehman
crisis and the Great Recession. While structural changes may have
amplified price linkages across markets, results do not suggest that they
are the key factors for greater price comovements. Instead, the effects of
the late-2000s recession as a time of great economic weakness and
uncertainty may have changed concurrently the behaviour of both food and
financial market participants, such that different market prices exhibit
large comovements.
Journal: Applied Economics
Pages: 2087-2095
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.894634
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894634
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2087-2095
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dobbie
Author-X-Name-First: Michael
Author-X-Name-Last: Dobbie
Author-Name: Craig MacMillan
Author-X-Name-First: Craig
Author-X-Name-Last: MacMillan
Author-Name: Ian Watson
Author-X-Name-First: Ian
Author-X-Name-Last: Watson
Title: The returns to general experience, job and occupational tenure: a study using Australian panel data
Abstract:
This article uses Australian panel data
for the years 2001--2009 to estimate returns to general experience, job
and occupational tenure. We pay particular attention to issues of
unobserved heterogeneity bias in our estimations. We find that both
general experience and occupational tenure have statistically and
numerically significant effects on wage outcomes, even after controlling
for unobserved heterogeneity. Job tenure on the other hand only seems to
matter in OLS regressions that do not control for heterogeneity biases.
Once these biases are controlled for, only a modest effect from job tenure
remains. The inclusion of occupational tenure in the estimating equation
tends to negate even this modest job tenure effect. The only exception to
this is for workers in large organizations. For these workers a small but
statistically significant effect from job tenure remains, even once we
have controlled for heterogeneity and included occupational tenure in the
estimating equation. The results reported in this article have
implications for the various theories of the labour market that predict
upward-sloping wage-job-tenure profiles.
Journal: Applied Economics
Pages: 2096-2107
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.894632
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894632
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2096-2107
Template-Type: ReDIF-Article 1.0
Author-Name: Qiujie Zheng
Author-X-Name-First: Qiujie
Author-X-Name-Last: Zheng
Author-Name: H. Holly Wang
Author-X-Name-First: H. Holly
Author-X-Name-Last: Wang
Author-Name: Qing Hua Shi
Author-X-Name-First: Qing Hua
Author-X-Name-Last: Shi
Title: Estimating bivariate yield distributions and crop insurance premiums using nonparametric methods
Abstract:
Modelling crop yield distribution is
crucial in crop insurance premium setting. The correlation between
different crop yields due to rotations or systemic risks requires
estimation of joint yield distribution for multiple crops. In this
article, we apply a nonparametric method to estimate bivariate yield
distributions using farm-level yield data of wheat and corn in Shandong
Province in China. Then, the simulated yields are used to evaluate the
expected indemnity of one traditional and one hypothetical crop insurance
programme. Our results reveal that the nonparametric bivariate method is
very flexible in shaping the yield probability density functions to
estimate local idiosyncrasies and correlation between two crops. It is
also feasible to simulate the nonparametric yield distributions at a
satisfying level of accuracy. The simulation results show that the
hypothetical two-crop insurance contract can be more affordable to farmers
than traditional individual crop insurance contracts.
Journal: Applied Economics
Pages: 2108-2118
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.894630
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894630
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2108-2118
Template-Type: ReDIF-Article 1.0
Author-Name: Louisa Andriamasy
Author-X-Name-First: Louisa
Author-X-Name-Last: Andriamasy
Author-Name: Carlos P. Barros
Author-X-Name-First: Carlos P.
Author-X-Name-Last: Barros
Author-Name: Qibin Liang
Author-X-Name-First: Qibin
Author-X-Name-Last: Liang
Title: Technical efficiency of French nuclear energy plants
Abstract:
This article analyses the efficiency of
French nuclear energy plants belonging to EDF-electricity of France from
2004 to 2008 with a DEA-Data Envelopment Analysis model. The
-convexity model is used to
investigate the technical efficiency of a representative sample of nuclear
plants. The results indicated that some plants have undergone an
improvement in technical efficiency while others have regressed in terms
of technical efficiency. Policy implications related to the results are
discussed.
Journal: Applied Economics
Pages: 2119-2126
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.892199
File-URL: http://hdl.handle.net/10.1080/00036846.2014.892199
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2119-2126
Template-Type: ReDIF-Article 1.0
Author-Name: Christophe Andr頍
Author-X-Name-First: Christophe
Author-X-Name-Last: Andr頍
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Testing for persistence in housing price-to-income and price-to-rent ratios in 16 OECD countries
Abstract:
Housing price-to-income and price-to-rent
ratios are among the most widely monitored indicators of housing market
conditions. While these ratios tend to fluctuate around a constant level
or a mild trend over the long term, they also tend to deviate from these
benchmarks for protracted periods. Traditional unit root tests often
indicate the presence of a unit root. This article uses the framework of
fractional integration to test the persistence of price-to-income and
price-to-rent ratios in a sample of 16 OECD countries spanning four
decades. The results indicate that the ratios are highly persistent. The
possibility that persistence estimates may be affected by structural
breaks in the series is also considered, but evidence of such breaks is
found only in a very limited number of cases. Policy action may be
required if high price-to-income and price-to-rent ratios have adverse
social and economic consequences. Policies should be guided by a careful
analysis of the factors behind high ratios.
Journal: Applied Economics
Pages: 2127-2138
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.896988
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896988
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2127-2138
Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Title: Effects of explicit FOMC policy-rate guidance on equities and risk measures
Abstract:
We quantify the impact of explicit Federal
Open Market Committee (FOMC) policy-rate guidance used as an
unconventional monetary-policy tool at the zero lower bound of the policy
rate on US equity prices, as well as on the risk indicators of credit and
CDS spreads, implied volatilities and US equity index risk reversals. We
find that explicit FOMC policy-rate guidance announcements at the zero
lower bound led to a significant increase in US equity prices, for an
aggregate equity index as well as for US commercial bank and US
nonfinancial equities. Moreover, we find that they led to a significant
reduction in some credit spreads. They also led to a significant reduction
in an implied volatility index for US government bonds, as well as in the
absolute value of US equity risk reversals, implying a lower perceived
risk attached to a large fall in the equity index.
Journal: Applied Economics
Pages: 2139-2153
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.894668
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894668
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2139-2153
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Hanafiah Harvey
Author-X-Name-First: Hanafiah
Author-X-Name-Last: Harvey
Title: US--Indonesia trade at commodity level and the role of the exchange rate
Abstract:
Previous studies that assessed the impact
of currency depreciation on inpayments and outpayments of Indonesia with
her major trading partners did not find much significant results,
especially in the trade with the United States. We wonder whether
insignificant link between the real rupiah-dollar rate and Indonesia's
inpayments and outpayments with the United States is due to aggregation
bias. To answer this question, we disaggregate the trade flows between the
two countries by commodity and consider the sensitivity of inpayments of
108 US exporting industries and outpayments of 32 US importing industries
from Indonesia. We find that most industries respond to exchange rate
changes in the short run. In the long run, however, 32 inpayments schedule
and 17 outpayments schedule are significantly affected. A 1% real
depreciation of the dollar was found to improve US trade balance by 1.8%.
Journal: Applied Economics
Pages: 2154-2166
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.896985
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896985
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2154-2166
Template-Type: ReDIF-Article 1.0
Author-Name: Ahdi Noomen Ajmi
Author-X-Name-First: Ahdi Noomen
Author-X-Name-Last: Ajmi
Author-Name: Ghassen El-montasser
Author-X-Name-First: Ghassen
Author-X-Name-Last: El-montasser
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Title: Oil prices and MENA stock markets: new evidence from nonlinear and asymmetric causalities during and after the crisis period
Abstract:
This article investigates the potential of
nonlinear causal relationships between world oil prices and stock markets
in Middle East and North Africa (MENA) countries during a black swan
period that is characterized by rarity and devastating impacts. Our study
is carried out using the daily data for 11 MENA countries over the period
from 2 July 2007 to 27 August 2012. By using the nonlinear and asymmetric
causality test of Kyrtsou and Labys (2006), we mainly find that: (i) the
oil prices and MENA stock markets interact in a nonlinear manner; (ii) the
signs of changes in the causing variables are important for detecting the
true causality links between the variables and (iii) the nonlinear
causality is more pronounced in the case of the Brent than West Texas
Intermediate oil prices.
Journal: Applied Economics
Pages: 2167-2177
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.896987
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896987
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2167-2177
Template-Type: ReDIF-Article 1.0
Author-Name: E. MᲱuez
Author-X-Name-First: E.
Author-X-Name-Last: MᲱuez
Author-Name: A.R. Mart-Ca
Author-X-Name-First: A.R.
Author-X-Name-Last: Mart-Ca
Author-Name: I. P鲥z-Soba
Author-X-Name-First: I.
Author-X-Name-Last: P鲥z-Soba
Title: From real estate to consumption: the role of credit markets in the USA
Abstract:
The aim of this article is to test whether
the credit market conditions affect the strength of transmission of real
estate wealth effects on household consumption in the US economy. Although
many different works have dealt with the analysis of the existence of a
real estate wealth effect, most of them as a reaction to
the dramatic increase of housing prices in several OECD countries, there
are only few papers analysing whether the consumption response depends on
the positive or negative sign of the wealth shock and, as far as we know,
none of them takes the effects of credit market conditions on that
asymmetric response into account. This article tries to fill the existing
gap in the literature on this matter. From an econometric perspective, we
estimate the asymmetries in the consumption response within the momentum
threshold autoregressive model (M-TAR) proposed by Enders and Siklos
(2001), but following Stevans (2004), it is applied to a multivariate
framework. The main results show that the credit market conditions play a
significant role in the transmission of changes in real estate wealth to
consumption. In addition, we find that there exists an asymmetric
behaviour in the US aggregate consumption spending responses to real
estate wealth and credit market shocks, which is only significant when a
negative shock takes place.
Journal: Applied Economics
Pages: 2178-2189
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.896986
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896986
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2178-2189
Template-Type: ReDIF-Article 1.0
Author-Name: Wolfram Berger
Author-X-Name-First: Wolfram
Author-X-Name-Last: Berger
Author-Name: Michael Pickhardt
Author-X-Name-First: Michael
Author-X-Name-Last: Pickhardt
Author-Name: Athanassios Pitsoulis
Author-X-Name-First: Athanassios
Author-X-Name-Last: Pitsoulis
Author-Name: Aloys Prinz
Author-X-Name-First: Aloys
Author-X-Name-Last: Prinz
Author-Name: Jordi Sardࠍ
Author-X-Name-First: Jordi
Author-X-Name-Last: Sardࠍ
Title: The hard shadow of the Greek economy: new estimates of the size of the underground economy and its fiscal impact
Abstract:
This article presents new estimates of the
Greek underground economy and explores the link between the underground
economy and aggregate debt. We show that the Greek underground economy has
been underestimated heavily and has been on a rising trend again since
Greece adopted the Euro. We also present evidence that the size of the
underground economy is positively related to the debt-to-GDP ratio,
implying that fighting the underground economy is also conducive to
financial and macroeconomic stability. Our results suggest that for our
sample of 11 EMU member countries, the loss of the inflation tax as an
economic policy instrument had drastic consequences. While the underground
economy did not have a statistically significant impact on aggregate debt
before the introduction of the Euro, it has pushed up the debt-to-GDP
ratio in our sample since.
Journal: Applied Economics
Pages: 2190-2204
Issue: 18
Volume: 46
Year: 2014
Month: 6
X-DOI: 10.1080/00036846.2014.896984
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896984
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:18:p:2190-2204
Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary
Author-X-Name-First: M. Ali
Author-X-Name-Last: Choudhary
Author-Name: M. Nadim Hanif
Author-X-Name-First: M. Nadim
Author-X-Name-Last: Hanif
Author-Name: Javed Iqbal
Author-X-Name-First: Javed
Author-X-Name-Last: Iqbal
Title: On smoothing macroeconomic time series using the modified HP filter
Abstract:
In business-cycle research, smoothing data
is an essential first step to evaluate the extent to which model-generated
moments stand up to their empirical counterparts. We put to test
McDermott's (1997) modified version of Hodrick and Prescott's (1997)
smoothing filter. On the one hand, our simulations suggest that relative
to other filters, the modified HP-filter replicates better artificially
generated series with known properties. On the other hand, using true data
we find that autoregressive properties of smoothed series are not affected
by the choice of smoothing HP filters, but the same does not hold when it
comes to multivariate analysis. The later result is especially strong for
annual data. We report results for a large set of countries.
Journal: Applied Economics
Pages: 2205-2214
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.894631
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894631
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2205-2214
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Ergen
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Ergen
Title: Tail dependence and diversification benefits in emerging market stocks: an extreme value theory approach
Abstract:
This article examines tail dependence, the
benefits of diversification and the relation between the two for emerging
stock markets. We find most emerging equity markets are independent in
limiting joint extremes. However, the dependence in finite levels of
extremes is still much stronger than the dependence implied by
multivariate normality. Therefore, simple correlation analysis can lead to
gross underestimation of the chances of joint crashes in multiple markets.
Assuming risk-averse investors guarding against extreme losses,
diversification benefits are measured for each two-country optimal
portfolio by the reduction in quantile risk measures such as value-at-risk
and expected shortfall relative to an undiversified portfolio. It is shown
that tail dependence measures developed from multivariate extreme value
theory are negatively related to diversification benefits and more
importantly can explain diversification benefits better than the
correlation coefficient at the most extreme quantiles.
Journal: Applied Economics
Pages: 2215-2227
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899678
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899678
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2215-2227
Template-Type: ReDIF-Article 1.0
Author-Name: Stefanie Schubert
Author-X-Name-First: Stefanie
Author-X-Name-Last: Schubert
Title: Reducing public health insurance expenditure: a numerical analysis for Germany
Abstract:
In recent decades, Germany's statutory
health insurance expenditure increased drastically. To combat moral
hazard, moderate copayments for the purchase of prescription drugs were
introduced and increased several times. These measures, however, have been
insufficient to buck the steadily increasing tide of Germany's statutory
health care expenditure, making further reforms indispensable. Among a
multitude of potential reform proposals, such as a switch to a health
premia regime, are two policy options that provide for incentives to limit
health care demand: mandatory deductibles and further elevating
copayments. By combining an applied general equilibrium (AGE) model with
abundant empirical data on heterogeneous household types, this article
investigates the economic effects of these two policy options, thereby
looking at both the current earnings-related SHI system and a hypothetical
health premia regime characterized by per capita premia. As a key outcome,
we find that the decrease in expenditure associated with both reform
options is too small to induce substantial overall effects, most notably,
because both the level of deductibles and the copayment rate are rather
moderate in international contexts.
Journal: Applied Economics
Pages: 2228-2241
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.896982
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896982
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2228-2241
Template-Type: ReDIF-Article 1.0
Author-Name: Jenni P䤫könen
Author-X-Name-First: Jenni
Author-X-Name-Last: P䤫könen
Author-Name: Timo T. Sepp䬤
Author-X-Name-First: Timo T.
Author-X-Name-Last: Sepp䬤
Title: Using composite indicators to evaluate the efficiency of health care system
Abstract:
This article produces a system-level
composite indicator on population health in publicly provided primary
health care. We first summarize information from various indicators of
care by principal component analysis (PCA). We then regress the costs of
care against these indicators to evaluate whether they are related. The
existing health status indicator provides a point of comparison. Our
results suggest that PCA can be used to extract information efficiently
and thus to reduce the dimensionality of data. Furthermore, the use of the
existing health status indicator to estimate cost-efficiency leads to
invalid inference on overall efficiency, while the use of composite
indicator significantly reduces the bias.
Journal: Applied Economics
Pages: 2242-2250
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899675
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899675
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2242-2250
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Sheng
Author-X-Name-First: Yu
Author-X-Name-Last: Sheng
Author-Name: Hsiao Chink Tang
Author-X-Name-First: Hsiao Chink
Author-X-Name-Last: Tang
Author-Name: Xinpeng Xu
Author-X-Name-First: Xinpeng
Author-X-Name-Last: Xu
Title: The impact of the ACFTA on ASEAN--PRC trade: estimates based on an extended gravity model for component trade
Abstract:
This article uses an extended gravity
model to examine the impact of the free trade agreement between the
Association of Southeast Asian Nations (ASEAN) and the People's Republic
of China (PRC) on their trade flows and patterns. New determinants are
utilized to capture the growing importance of global production sharing
and intraregional trade in parts and components in East Asia. We show that
the free trade agreement leads to substantially higher and more pronounced
bilateral trade flows between ASEAN and the PRC than what a conventional
gravity model predicts and the increase is concentrated in ASEAN countries
that have stronger industrial linkages with the PRC.
Journal: Applied Economics
Pages: 2251-2263
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899676
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899676
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2251-2263
Template-Type: ReDIF-Article 1.0
Author-Name: John Ashworth
Author-X-Name-First: John
Author-X-Name-Last: Ashworth
Author-Name: Benny Geys
Author-X-Name-First: Benny
Author-X-Name-Last: Geys
Author-Name: Bruno Heyndels
Author-X-Name-First: Bruno
Author-X-Name-Last: Heyndels
Author-Name: Fanny Wille
Author-X-Name-First: Fanny
Author-X-Name-Last: Wille
Title: Competition in the political arena and local government performance
Abstract:
Competition reduces rent extraction in
private-sector firms. In this article, we empirically assess whether it
similarly disciplines politicians by evaluating local-level governments'
performance in Flanders. The results indicate that
electoral competition -- measured via the number of
parties competing in elections -- significantly positively affects the
productive efficiency of municipal policy. Intertemporal
competition -- measured as the volatility of election outcomes over time
-- has a similar, but weaker, positive effect. These beneficial effects
are mitigated by the fact that competition may lead to more fragmented
governments, which is shown to work against their productive efficiency.
Overall, though, the beneficial effects outweigh the unfavourable ones in
our sample.
Journal: Applied Economics
Pages: 2264-2276
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899679
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899679
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2264-2276
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt William Rotthoff
Author-X-Name-First: Kurt William
Author-X-Name-Last: Rotthoff
Author-Name: Craig A. Depken
Author-X-Name-First: Craig A.
Author-X-Name-Last: Depken
Author-Name: Peter A. Groothuis
Author-X-Name-First: Peter A.
Author-X-Name-Last: Groothuis
Title: Influences on sponsorship deals in NASCAR: indirect evidence from time on camera
Abstract:
When corporate sponsors want to maximize
their exposure, they often focus sponsorship dollars on events, teams and
athletes that will prove to be reliable, respectable and, most important,
repetitive advertising outlets. Analysing the factors that increase a
broadcaster's propensity to display a sponsor during television broadcasts
is often hard to measure. Using a unique data set describing NASCAR
broadcasts, we indirectly analyse what influences the value of a
sponsorship contract through a proxy for driver sponsorship value: the
value of time on camera (VTOC). We find that the VTOC is influenced by
driver performance and their celebrity status, as measured by driver
experience and inherited brand-name capital. Although the values of
individual sponsorship contracts are generally not reported, the evidence
herein suggests that driver performance and status likely influence the
value of NASCAR sponsorship contracts.
Journal: Applied Economics
Pages: 2277-2289
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899672
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899672
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2277-2289
Template-Type: ReDIF-Article 1.0
Author-Name: Luciana De Andrade Costa
Author-X-Name-First: Luciana
Author-X-Name-Last: De Andrade Costa
Title: The effect of physician board membership on uncompensated care provision
Abstract:
Previous studies indicate that nonprofit
and for-profit hospitals provide comparable levels of uncompensated care,
when taking into account their sizes. This evidence suggests that
for-profit hospitals extract some indirect benefit when providing
uncompensated care. Our article investigates how physician board
membership affects uncompensated care provision. With data for hospitals
in California from 1997 to 2010, we estimate a fixed-effect model where
uncompensated care is a function of physician board membership, other
board attributes, as well as hospital characteristics. Our results
indicate that physician board membership in for-profit hospitals relates
positively with uncompensated care provision. Prior evidence, such as
Goldstein and Ward (2004) and Molinari et al. (1995), has
shown that involving physicians in strategic decisions improves hospitals'
financial performance. Our results reinforce the notion that having
physicians in leadership or strategic positions benefits for-profit
hospitals. In these hospitals, physicians seem to understand the strategic
component of providing uncompensated care, possibly due to their closer
assessment of patients' needs.
Journal: Applied Economics
Pages: 2290-2300
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899671
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899671
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2290-2300
Template-Type: ReDIF-Article 1.0
Author-Name: Eric C. Y. Ng
Author-X-Name-First: Eric C. Y.
Author-X-Name-Last: Ng
Author-Name: Malick Souare
Author-X-Name-First: Malick
Author-X-Name-Last: Souare
Title: On investment and exchange-rate movements
Abstract:
We investigate the ways in which permanent
exchange-rate changes may affect investment by influencing domestic and
foreign revenue, the cost of imported variable inputs and the investment
price of imported capital goods. We find that the revenue and
investment-price channels have a quantitatively greater effect on
investment than the cost channel. The negative effect of the revenue
channel, which affects the marginal profitability of capital, outweighs
the positive effect of the investment-price channel, which affects the
marginal cost of capital, implying that exchange-rate appreciation has a
net negative influence on investment. The estimation results are robust to
different approaches to extracting the permanent components of exchange
rates.
Journal: Applied Economics
Pages: 2301-2315
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.902026
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902026
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2301-2315
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Sch䦥r
Author-X-Name-First: Andreas
Author-X-Name-Last: Sch䦥r
Author-Name: Urs von Arx
Author-X-Name-First: Urs
Author-X-Name-Last: von Arx
Title: The influence of pension funds on corporate governance
Abstract:
Although pension funds have gained
importance in the last two decades, their role has not been described in
detail by economic models. This article focuses on the scope of these
institutional investors when they are not satisfied with a management team
of a company in which the pension fund holds a block of shares. Stock
holdings by pension funds are largely dispersed. Therefore, any
intervention by pension funds in corporate governance requires the
formation of a coalition of pension funds. The realization of a
coordinated intervention, in turn, is subject to the problems related to
the provision of public goods, such as free riding. We find that the stock
dispersion and the combined share of pension funds, coordination costs and
the attractiveness of the exit option are relevant factors for determining
the probability of the success of interventions.
Journal: Applied Economics
Pages: 2316-2329
Issue: 19
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899670
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899670
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2316-2329
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: Michael A. Nelson
Author-X-Name-First: Michael A.
Author-X-Name-Last: Nelson
Title: Whistleblower laws and exposed corruption in the United States
Abstract:
This research creates a unique
internet-based measure of awareness about state-level whistleblower laws
and provisions to examine their effects on observed corruption in the
United States. Are whistleblower laws complementary or substitutes for
other, more direct, corruption control measures? Placing the analysis
within the corruption literature, the findings show that greater
whistleblower awareness results in more observed corruption and this
finding holds across specifications. Internet awareness about
whistleblower laws seems relatively more effective at exposing corruption
than the quantity and quality of state whistleblower laws themselves.
Journal: Applied Economics
Pages: 2331-2341
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.894633
File-URL: http://hdl.handle.net/10.1080/00036846.2014.894633
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2331-2341
Template-Type: ReDIF-Article 1.0
Author-Name: Michele Limosani
Author-X-Name-First: Michele
Author-X-Name-Last: Limosani
Author-Name: Emanuele Millemaci
Author-X-Name-First: Emanuele
Author-X-Name-Last: Millemaci
Title: Precautionary savings of agents with heterogeneous risk aversion
Abstract:
This article focuses on the estimation of
the importance of the precautionary motive in the wealth accumulation
decision. We use the micro data set of the De Nederlandsche Bank (DNB)
Household Survey (DHS) (CentERdata, Tilburg University), a Dutch household
survey containing information on wealth, a subjective measure of income
uncertainty and subjective qualitative measures of risk aversion. We find
that only a small share of wealth is accumulated for the precautionary
motive by the Dutch households. This share of wealth is constant across
assets with different degrees of liquidity. The economic downturn of the
period 2008 to 2010 seems to affect risk attitudes and precautionary
saving. Our findings also suggest that the more risk-averse individuals
are those who hold less savings.
Journal: Applied Economics
Pages: 2342-2361
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.896983
File-URL: http://hdl.handle.net/10.1080/00036846.2014.896983
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2342-2361
Template-Type: ReDIF-Article 1.0
Author-Name: Roohollah Zare
Author-X-Name-First: Roohollah
Author-X-Name-Last: Zare
Author-Name: M. Azali
Author-X-Name-First: M.
Author-X-Name-Last: Azali
Author-Name: M. S. Habibullah
Author-X-Name-First: M. S.
Author-X-Name-Last: Habibullah
Author-Name: W. N. W. Azman-Saini
Author-X-Name-First: W. N. W.
Author-X-Name-Last: Azman-Saini
Title: Monetary policy effectiveness and stock market cycles in ASEAN-5
Abstract:
This article examines the asymmetric
effects of monetary policy on real output in bull and bear phases of stock
market in five ASEAN economies (Malaysia, Singapore, Indonesia, the
Philippines and Thailand) using the recently developed pooled mean group
(PMG) technique. Stock market cycles are identified by employing Markov
switching models and the rule-based nonparametric approach. Estimating the
models using monthly data from 1991:1 to 2011:12, the results show that
monetary policy (measured by short-term interest rate) has a negative and
statistically significant long-run effect on real output in bull and bear
market periods while the effects are stronger in bear periods than bulls.
In the short run, there is no statistically significant relationship
between monetary policy and real output. These results are consistent with
finance constraints (capital market imperfection) models that predict that
monetary policy is more effective during bear periods than bulls.
Journal: Applied Economics
Pages: 2362-2374
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899673
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899673
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2362-2374
Template-Type: ReDIF-Article 1.0
Author-Name: Mark J. Browne
Author-X-Name-First: Mark J.
Author-X-Name-Last: Browne
Author-Name: Lan Ju
Author-X-Name-First: Lan
Author-X-Name-Last: Ju
Author-Name: Zhiyong Tu
Author-X-Name-First: Zhiyong
Author-X-Name-Last: Tu
Title: Broker monitoring of premium adequacy: the role of contingent commissions
Abstract:
Contingent commissions, which are payments
made by an insurer to brokers based on the volume and profitability of
insurance placed with the insurer, have been criticized as damaging to the
relationship between the insured and its broker. The argument is made that
contingent commission payments encourage brokers to select insurers for
their clients based on the potential to earn contingent commissions,
rather than on the needs of the insured. We argue that contingent
commission payments, which while directly paid by the insurer are
ultimately paid by the insured through higher premiums, are beneficial to
insureds because they provide an incentive for the broker to place their
coverage with an insurer that is charging an adequate premium. We contend
that although inadequate premiums are perhaps good for the insured in the
short term, in the longer term, inadequate premiums will result in price
hikes or coverage restrictions that are harmful to the insureds. Our
empirical analysis demonstrates that insurers who pay contingent
commissions experience less price fluctuation over the underwriting cycle
than insurers who do not pay contingent commissions in the US property and
casualty insurance industry.
Journal: Applied Economics
Pages: 2375-2386
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.902020
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902020
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2375-2386
Template-Type: ReDIF-Article 1.0
Author-Name: Emmanouil Trachanas
Author-X-Name-First: Emmanouil
Author-X-Name-Last: Trachanas
Author-Name: Constantinos Katrakilidis
Author-X-Name-First: Constantinos
Author-X-Name-Last: Katrakilidis
Title: Is the Greek budget deficit sustainable after all? Empirical evidence accounting for regime shifts
Abstract:
This article re-examines the
sustainability of the Greek budget deficit by using a formal framework
based on the government's intertemporal budget constraint. The empirical
analysis uses annual data from 1960 to 2011 and employs traditional as
well as more recent unit root and cointegration techniques that account
for linear and nonlinear effects in fiscal policy actions. Unlike previous
studies, the evidence suggests that, allowing for structural breaks, the
Greek budget deficit is unsustainable. The parameter after the second
detected break reflects the structural deficiencies of the Greek economy.
Journal: Applied Economics
Pages: 2387-2397
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.902021
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902021
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2387-2397
Template-Type: ReDIF-Article 1.0
Author-Name: C. P. Barros
Author-X-Name-First: C. P.
Author-X-Name-Last: Barros
Author-Name: G. Rossi
Author-X-Name-First: G.
Author-X-Name-Last: Rossi
Title: A Bayesian stochastic frontier of Italian football
Abstract:
This study analyses the technical
efficiency of Serie A Italian football clubs during the 2004--2012 seasons
with a Bayesian stochastic frontier model using unique data extracted from
clubs' annual reports. Specifically, the focus of the study is on
assessing the impact effects on clubs' efficiency whether they are big
clubs, they employ several foreign player, they compete in European
competitions and their involvement with football scandals in the Italian
football. The empirical results reveal that efficiency varies among the
clubs analysed and policy implications are derived.
Journal: Applied Economics
Pages: 2398-2407
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.902023
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902023
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2398-2407
Template-Type: ReDIF-Article 1.0
Author-Name: Jason Fletcher
Author-X-Name-First: Jason
Author-X-Name-Last: Fletcher
Title: Friends or family? Revisiting the effects of high school popularity on adult earnings
Abstract:
Recent evidence has suggested links
between high school popularity and wages during mid-life using the
Wisconsin Longitudinal Study. This article revisits this question by first
replicating the results using an alternative dataset that is very similar
in structure. Similar to previous results, the Add Health baseline effects
suggest that an additional high school friendship nomination is linked to
a 2% increase in earnings around age 30. However, leveraging the unique
structure of the Add Health shows that sibling comparisons eliminate any
associations between popularity and earnings. The findings suggest that
families, rather than friends, may be the cause of the association.
Journal: Applied Economics
Pages: 2408-2417
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.902024
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902024
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2408-2417
Template-Type: ReDIF-Article 1.0
Author-Name: Peng Nie
Author-X-Name-First: Peng
Author-X-Name-Last: Nie
Author-Name: Alfonso Sousa-Poza
Author-X-Name-First: Alfonso
Author-X-Name-Last: Sousa-Poza
Title: Maternal employment and childhood obesity in China: evidence from the China Health and Nutrition Survey
Abstract:
Using five waves from the China Health and
Nutrition Survey (CHNS), we investigate the association between maternal
employment and obesity in children aged 3--17 in both rural and urban
China. Using body mass index (BMI) and waist circumference (WC) as
measures for paediatric adiposity, we provide scant evidence for its
relation to maternal employment. We also find no strong association
between maternal employment and our measures for children's diet and
physical activity. Our study also suggests that grand-parenting could have
beneficial effects on childhood obesity.
Journal: Applied Economics
Pages: 2418-2428
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.902025
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902025
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2418-2428
Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Author-Name: Kui-Wai Li
Author-X-Name-First: Kui-Wai
Author-X-Name-Last: Li
Author-Name: Junji Shimada
Author-X-Name-First: Junji
Author-X-Name-Last: Shimada
Title: Rational expectation bubbles: evidence from Hong Kong's sub-indices
Abstract:
This article uses Hong Kong stock market's
four sub-indices to examine the existence and causes of rational
expectation bubbles. The unit root test is applied to the rational bubble
hypothesis. Various causality test methods are used to examine the
causality of bubble among the four sub-indices. The empirical results show
that in the sub-periods of 1986 to 2002 and 2000 to 2012, the bubbles of
commerce and industry and utilities industries are consistent with
rational expectation bubbles, but not so in the finance and properties
industries. In general, the rational expectation bubbles in the two
sub-periods seemed to have been caused by expectations in other growing
foreign economies.
Journal: Applied Economics
Pages: 2429-2440
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.904493
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904493
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2429-2440
Template-Type: ReDIF-Article 1.0
Author-Name: Arusha Cooray
Author-X-Name-First: Arusha
Author-X-Name-Last: Cooray
Author-Name: Reetu Verma
Author-X-Name-First: Reetu
Author-X-Name-Last: Verma
Author-Name: Lynne Wright
Author-X-Name-First: Lynne
Author-X-Name-Last: Wright
Title: Does a gender disparity exist in academic rank? Evidence from an Australian university
Abstract:
Employing a unique administrative data set
on academics from the University of Wollongong (UOW), we investigate if
women are under-represented in academic rank, taking into account
information on personal characteristics, job characteristics, education
and productivity. The results suggest that males have a significant
advantage in rank attainment. The possession of a PhD, the number of years
of experience and the number of journal articles, books, book chapters,
competitive grants and ERA A* ranked articles appear to be important for
academic rank attainment. A Blinder--Oaxaca decomposition test indicates
that both supply side and demand side factors play a role; however, there
is greater support for the endowments argument. Interviews were conducted
in an attempt to explain the results. Interviews showed that men were more
career-driven compared to women.
Journal: Applied Economics
Pages: 2441-2451
Issue: 20
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.904496
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904496
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Handle: RePEc:taf:applec:v:46:y:2014:i:20:p:2441-2451
Template-Type: ReDIF-Article 1.0
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Hong Zhao
Author-X-Name-First: Hong
Author-X-Name-Last: Zhao
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Title: What precludes the development of noninterest activities in Chinese commercial banks from the perspective of the price of interest activities?
Abstract:
Noninterest activities of Chinese commercial banks remain sluggish. This
article examines the price of interest activities and noninterest
activities of Chinese commercial banks over 2000-2010 based on OLS and
2SLS regression. We find that the price of interest activities has a
significant negative effect on the noninterest activities. It appears that
controlled interest rate is the main hindrance of the development of
noninterest activities, and the result is consistent with 'political'
view. We also find that among state-owned commercial banks and
nonstate-owned ones, the relationships of interest activities and
noninterest activities are differential. The link between the price of
interest activities and noninterest activities in state-owned commercial
banks is stronger than that in nonstate-owned commercial banks. That is
the result of different government intervention degree.
Journal: Applied Economics
Pages: 2453-2461
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.881971
File-URL: http://hdl.handle.net/10.1080/00036846.2014.881971
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2453-2461
Template-Type: ReDIF-Article 1.0
Author-Name: Jun Ma
Author-X-Name-First: Jun
Author-X-Name-Last: Ma
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Expected returns and expected dividend growth: time to rethink an established empirical literature
Abstract:
This article examines various state-space and VAR model specifications to
investigate the contributions of expected returns and expected dividend
growth to movements in the price-dividend ratio. We show that both models
involve serious inference problems that need to be dealt with carefully.
We propose procedures that offer more reliable inference results, and the
corrected inferences indicate that the aggregate data of dividends and
returns alone do not provide strong enough evidence to support the notion
that the expected returns dominate the stock price variation. However, we
show that an alternative measure of cash flows termed the net payout by
Larrain and Yogo (2008) appears to lend strong support to the notion that
the expected cash flow explains a large fraction of the firm value
variation. This finding remains robust in both state-space and VAR
decompositions with the corrected inference.
Journal: Applied Economics
Pages: 2462-2476
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899674
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899674
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2462-2476
Template-Type: ReDIF-Article 1.0
Author-Name: Werner Bönte
Author-X-Name-First: Werner
Author-X-Name-Last: Bönte
Author-Name: Stefan Krabel
Author-X-Name-First: Stefan
Author-X-Name-Last: Krabel
Title: You can't always get what you want: gender differences in job satisfaction of university graduates
Abstract:
Previous literature stressed on the gender differences in job satisfaction
and the factors influencing the job satisfaction of men and women. Two
rationales are usually provided for the finding that women tend to be
relatively more satisfied with their jobs than men although disadvantaged
in labour markets: first, women may have relatively lower
expectations of career and income, and second, they may attach relatively
less importance to extrinsic rewards than men. In order to analyse whether
substantial gender differences exist already at the beginning of the
career, we employ information of over 20 000 graduates collected through a
large-scale survey of German university graduates who recently entered the
labour market. We find that the job satisfaction of female graduates is on
average slightly lower than the job satisfaction of male graduates, but
our results do not point to substantial gender differences. In our sample
of highly qualified individuals, men and women are very similar in what
they want from their jobs and also in their perceptions of what they get.
While our results point to substantial similarity of men and women in the
early career stage, gender differences may emerge at later stages of the
career life cycle.
Journal: Applied Economics
Pages: 2477-2487
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.899677
File-URL: http://hdl.handle.net/10.1080/00036846.2014.899677
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2477-2487
Template-Type: ReDIF-Article 1.0
Author-Name: Yang Zhang
Author-X-Name-First: Yang
Author-X-Name-Last: Zhang
Author-Name: Mengling Li
Author-X-Name-First: Mengling
Author-X-Name-Last: Li
Author-Name: Wai-Mun Chia
Author-X-Name-First: Wai-Mun
Author-X-Name-Last: Chia
Title: Foreign interest rate shocks and exchange rate regimes in East Asia
Abstract:
Using a theoretical dynamic stochastic general equilibrium model and an
empirical panel vector autoregression, we assess the transmission of
foreign real interest rate shocks on the volatility of various key
macroeconomic variables in nine small open economies in East Asia taking
into account the role of exchange rate regimes. Both the theoretical and
empirical findings confirm the hypothesis that flexible exchange rate may
work as a shock absorber when the economy is hit by foreign real interest
rate shocks. The findings suggest a clear trade-off between the volatility
of real exchange rate and real output to foreign interest rate shocks,
both the US and G7 real interest rates, where the responses of real output
are mitigated in countries that have more flexible exchange rate regime.
Journal: Applied Economics
Pages: 2488-2501
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.902022
File-URL: http://hdl.handle.net/10.1080/00036846.2014.902022
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2488-2501
Template-Type: ReDIF-Article 1.0
Author-Name: Hongduo Cao
Author-X-Name-First: Hongduo
Author-X-Name-Last: Cao
Author-Name: Ying Li
Author-X-Name-First: Ying
Author-X-Name-Last: Li
Author-Name: Yong Tan
Author-X-Name-First: Yong
Author-X-Name-Last: Tan
Title: The synchronization club: classification of global economic groups by inequality
Abstract:
We find that, from 1970 to 2006, the GDPs of 181 countries are described
by a log-normal with a power law tail before 1992, but by a kinked power
law distribution after 1992. In the 15 years from 1992 to 2006, there are
two obvious scale-free zones for annual GDPs, ranked from the largest to
smallest. If the countries in each scaling region are regarded as a group,
the world is divided into two groups, each with a roughly stable number of
members. The power exponents of the two groups are different and hence
lead to different inequalities. Therefore, the basis for classification is
the macro-consistent inequality within each group. The wealth grows in a
synchronous nonlinear manner within groups that have a stable wealth
distribution and rank structure. If each group is considered as a club, we
name it a 'synchronization club'.
Journal: Applied Economics
Pages: 2502-2510
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.904490
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904490
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2502-2510
Template-Type: ReDIF-Article 1.0
Author-Name: M. Argüelles
Author-X-Name-First: M.
Author-X-Name-Last: Argüelles
Author-Name: C. Benavides
Author-X-Name-First: C.
Author-X-Name-Last: Benavides
Author-Name: I. Fernᮤez
Author-X-Name-First: I.
Author-X-Name-Last: Fernᮤez
Title: A new approach to the identification of regional clusters: hierarchical clustering on principal components
Abstract:
This study focuses on the identification of regional business clusters as
a primary step in the design and implementation of cluster-based
development strategies. A methodology that has not been used previously to
identify clusters is applied to data on inter-industry linkages from the
input-output table of a region in northern Spain. The first advantage of
this approach, hierarchical clustering on principal components (HCPC),
over the use of factorial analysis alone, is that it involves the
application of objective clustering techniques to the principal components
analysis results, which leads to a better cluster solution. A second
advantage is derived from using a mixed algorithm for the clustering
process - a combination of the Ward's classification method with the
K-means algorithm - which improves the robustness of the final results.
Journal: Applied Economics
Pages: 2511-2519
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.904491
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904491
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2511-2519
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantins Benkovskis
Author-X-Name-First: Konstantins
Author-X-Name-Last: Benkovskis
Author-Name: Ludmila Fadejeva
Author-X-Name-First: Ludmila
Author-X-Name-Last: Fadejeva
Title: The effect of VAT rate on inflation in Latvia: evidence from CPI microdata
Abstract:
This article evaluates the inflation effect of recent value added tax
(VAT) rate changes in Latvia by using consumer price index (CPI)
microdata. Our findings suggest that the pass-through of the tax rate to
consumer prices is strong in case of upward tax adjustments, especially
when there are no demand restrictions, while the pass-through is weaker
for tax reductions. The frequency of price changes peaks at the moment of
VAT adjustment, which, however, is partially compensated by lower average
size of price revisions. The level of pass-through exhibits a high degree
of heterogeneity with higher pass-through for goods, especially food, and
lower for services.
Journal: Applied Economics
Pages: 2520-2533
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.904492
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904492
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2520-2533
Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Jung Hsieh
Author-X-Name-First: Chi-Jung
Author-X-Name-Last: Hsieh
Author-Name: Sheng-Hung Chen
Author-X-Name-First: Sheng-Hung
Author-X-Name-Last: Chen
Author-Name: Jie-Min Lee
Author-X-Name-First: Jie-Min
Author-X-Name-Last: Lee
Author-Name: Chun-Yuan Yeh
Author-X-Name-First: Chun-Yuan
Author-X-Name-Last: Yeh
Title: Is there the threshold effect of cigarette price on smoking prevalence? A cross-country panel data analysis
Abstract:
This article shows new cross-country evidences by empirically
investigating the joint effects of cigarette price levels and joining the
World Health Organization Framework Convention on Tobacco Control (WHO
FCTC) on smoking prevalence in 74 countries over the period of 2000, 2003,
2005 and 2006. We assessed cigarette price elasticity for three national
income levels using different databases on cigarette price from the
Economist Intelligence Unit (EIU), demographic and socioeconomic country
characteristics from the World Bank and adjusted smoking prevalence rates
published by various yearly WHO reports on the global tobacco epidemic
from 2000 to 2010. A panel threshold regression was used to capture the
nonlinear effects that cigarette prices on smoking prevalence at the three
national income levels endogenously determined by estimation. Our findings
supported the evidence that joining the WHO FCTC would have a positive
effect on reducing cross-country smoking prevalence, especially among
countries with low- and medium-income levels. Moreover, some simulated
results show that a price hike of 10% would reduce smoking prevalence in
countries with national income levels equal to or less than US$1900 and by
7.2% in countries with national income levels between US$1900 and US$2510
more than those with national income levels that are higher than US$2510.
Journal: Applied Economics
Pages: 2534-2544
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.904494
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904494
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2534-2544
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Carlos Barros
Author-X-Name-First: Carlos
Author-X-Name-Last: Barros
Author-Name: Joao Ricardo Faria
Author-X-Name-First: Joao Ricardo
Author-X-Name-Last: Faria
Title: Inflation in Mozambique: empirical facts based on persistence, seasonality and breaks
Abstract:
This article investigates inflation in Mozambique using long-range
dependence (LRD) techniques in monthly data from December 1995 to October
2012. Two important features of the data are analysed: persistence and
seasonality, looking at aggregated and disaggregated data. The stability
of the parameters across the sample is also investigated. The results
indicate a high degree of persistence in the data along with a strong
seasonal pattern. Policy implications are discussed.
Journal: Applied Economics
Pages: 2545-2555
Issue: 21
Volume: 46
Year: 2014
Month: 7
X-DOI: 10.1080/00036846.2014.907482
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907482
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Handle: RePEc:taf:applec:v:46:y:2014:i:21:p:2545-2555
Template-Type: ReDIF-Article 1.0
Author-Name: Ku-Hsieh Chen
Author-X-Name-First: Ku-Hsieh
Author-X-Name-Last: Chen
Author-Name: Joe-Ming Lee
Author-X-Name-First: Joe-Ming
Author-X-Name-Last: Lee
Author-Name: Cheng-Huan You
Author-X-Name-First: Cheng-Huan
Author-X-Name-Last: You
Title: Who upholds the surging gold price? The role of the central bank worldwide
Abstract:
Who upholds the surging gold price? Conventional wisdom suggests that the
depreciation of the exchange rate, inflation and economic turmoil are the
suspects. Nonetheless, while these factors cease, why does the gold price
still stay around hikes? The gold market belongs to a global arena.
Different from other commodities, its participants include the national
central banks worldwide. However, surprisingly, the role played by these
tremendous market participants' gold holdings on the gold price has been
ignored in past empirical works. This research focuses on central banks'
gold holdings to explore who upholds the surging gold price. Several
interesting outcomes are derived. First, our empirical evidence shows an
inverse phenomenon relative to news reports from the mass media that the
gold holdings of central banks worldwide in fact continuously descend.
Second, the mainstream countries of the world have not played a main role
in the rising trend of the gold price in the recent decade; instead, newly
emerging industrialized countries' central banks' gold holdings show their
significant power in explaining causality to gold price fluctuations.
Third, the reason for the persistent gold buying behaviour of emerging
economies may be because the increase in the gold price delivers a kind of
short squeeze effect to the central banks of emerging countries.
Journal: Applied Economics
Pages: 2557-2575
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.904495
File-URL: http://hdl.handle.net/10.1080/00036846.2014.904495
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2557-2575
Template-Type: ReDIF-Article 1.0
Author-Name: William Sheng Liu
Author-X-Name-First: William Sheng
Author-X-Name-Last: Liu
Author-Name: Frank Wogbe Agbola
Author-X-Name-First: Frank Wogbe
Author-X-Name-Last: Agbola
Title: Regional analysis of the impact of inward foreign direct investment on economic growth in the Chinese electronic industry
Abstract:
This article empirically investigates the impact of inward foreign direct
investment (FDI) on regional economic growth in the Chinese electronic
industry (CEI). Utilizing a provincial-level panel data spanning the
period 1989 to 2009, we specify and estimate an endogenous economic growth
model for the CEI. Empirical results indicate that, for the coastal
region, FDI inflows have been growth enhancing, while in the central and
western regions the impact of FDI on economic growth is mixed, depending
on the channel of capital flow. Results also indicate that exports, human
capital, science and technology investment and fixed asset investment are
growth enhancing, while unemployment and foreign R&D investment are growth
impeding in the CEI.
Journal: Applied Economics
Pages: 2576-2592
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.907478
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907478
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2576-2592
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph A. Schaltegger
Author-X-Name-First: Christoph A.
Author-X-Name-Last: Schaltegger
Author-Name: Martin Weder
Author-X-Name-First: Martin
Author-X-Name-Last: Weder
Title: Fiscal adjustment and the costs of public debt service: evidence from OECD countries
Abstract:
We use a panel of 21 OECD countries from 1970 to 2009 to investigate the
effects of different fiscal adjustment strategies on long-term interest
rates - a key fiscal indicator reflecting the costs of government debt
service. As Europe's sovereign debt crisis has shown, governments
confronted with high deficits and rising debt may be forced to enact
fiscal adjustments in order to avoid increasing market pressure and
solvency problems. Over the last four decades, such measures taken by
governments in OECD countries have varied in duration, size, composition
and in their success to re-establish fiscal sustainability. We find that
large and expenditure-based adjustments lead to substantially lower
long-term interest rates. Small and revenue-based measures do not have an
effect on interest rates. Financial markets thus only seem to value strict
and decisive measures - a clear sign that the government's pledge to cut
the deficit is credible.
Journal: Applied Economics
Pages: 2593-2610
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.907479
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907479
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2593-2610
Template-Type: ReDIF-Article 1.0
Author-Name: Chaker Aloui
Author-X-Name-First: Chaker
Author-X-Name-Last: Aloui
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Title: On the detection of extreme movements and persistent behaviour in Mediterranean stock markets: a wavelet-based approach
Abstract:
We combine the global Hurst exponent and Morlet wavelet multi-resolution
analysis (MRA) to investigate the dynamic behaviour of six selected stock
markets in the Mediterranean region. Specifically, we employ the resonance
coefficients and their power spectra to identify potential extreme
movements and long-term dependence in stock returns. Using weekly data for
the period 2005 to 2010, our results reveal that the wavelet MRA is able
to reconstruct the effects of major extreme shocks on stock returns of
studied markets, such as the Asian financial crisis, the 9/11 terrorist
attacks and the 2007-2009 financial crisis. Moreover, the wavelet-based
global Hurst exponent indicates the presence of long-term dependencies in
stock returns of all the considered markets, except for France where the
anti-persistent behaviour is detected. Overall, our findings are useful to
assess the stock market efficiency and provide new insights into stock
market dynamics over different time scales.
Journal: Applied Economics
Pages: 2611-2622
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.907480
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907480
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2611-2622
Template-Type: ReDIF-Article 1.0
Author-Name: Salem Abo-Zaid
Author-X-Name-First: Salem
Author-X-Name-Last: Abo-Zaid
Title: Net job creation in the US economy: lessons from monthly data, 1950-2011
Abstract:
This article studies the monthly net job creation (NJC) at the aggregate
and the sectoral levels in the United States over the period 1950 to 2011.
The article has few important findings. First, NJC did not show a
significant trend over the last six decades, which led to a fall in the
NJC rate. Second, NJC was very volatile and it could change course even in
the span of 1 month. Third, there was no clear pattern about the
co-movement between NJC and the change in the unemployment rate. Fourth,
the averages of total NJC and private NJC since late 2010 were
significantly higher than their respective historical averages and the
volatility in NJC since the end of the Great Recession was not unusual by
historical standards. Fifth, while the evidence about the effects of the
2009 American Recovery and Reinvestment Act on employment is inconclusive,
some sectors appeared to benefit from it. Finally, the most frequent drop
in the unemployment rate was by 0.1%, and drops of more than 0.2% should
not be highly expected.
Journal: Applied Economics
Pages: 2623-2638
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.907481
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907481
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2623-2638
Template-Type: ReDIF-Article 1.0
Author-Name: W. Xu
Author-X-Name-First: W.
Author-X-Name-Last: Xu
Author-Name: S.E. Lowe
Author-X-Name-First: S.E.
Author-X-Name-Last: Lowe
Author-Name: S. Zhang
Author-X-Name-First: S.
Author-X-Name-Last: Zhang
Title: An analysis of irrigated agricultural outcomes under the prior appropriation doctrine: hypotheses and applications
Abstract:
This article measures irrigated agricultural outcomes under the prior
appropriation doctrine by developing a model of farmers' land allocations
in response to water supply change. The modelling approach considers the
institutional factors of water rights and permits the inclusive
determination of water and land allocations. We utilize farm-level data of
irrigated agriculture in Water District #1 in Idaho to examine the
predictions from our theoretical model. The water rights priority date is
consolidated at the farm level and used to differentiate farmers'
responses. We test a set of hypotheses that relate to water supply and
crop revenue. Our results suggest that the water rights priority has a
profound impact on agricultural outcomes, indicating strong institutional
effects and weak influence of market-based approaches. Farmers respond to
both long-term and seasonal water supply change and variation, and they
respond to seasonal water supply forecasts in varied ways depending on
their water rights portfolios, thus signalling a disproportionate
distribution of potential impacts of water supply change.
Journal: Applied Economics
Pages: 2639-2652
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.907483
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907483
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Template-Type: ReDIF-Article 1.0
Author-Name: Doroth饠Boccanfuso
Author-X-Name-First: Doroth饠
Author-X-Name-Last: Boccanfuso
Author-Name: Marcelin Joanis
Author-X-Name-First: Marcelin
Author-X-Name-Last: Joanis
Author-Name: Patrick Richard
Author-X-Name-First: Patrick
Author-X-Name-Last: Richard
Author-Name: Luc Savard
Author-X-Name-First: Luc
Author-X-Name-Last: Savard
Title: A comparative analysis of funding schemes for public infrastructure spending in Quebec
Abstract:
The economic literature has been investigating the positive relation
between public infrastructure spending and the productivity of the private
sector since Munnell (1992). We have introduced this relationship into a
recursive dynamic computable general equilibrium model of the Quebec
economy to investigate various funding schemes to scale up infrastructure
spending in the province. We draw our assumptions from Estache et
al. (2010) combined with sectoral elasticity parameters. We
conduct a comparative analysis where the funding comes from debt alone,
and debt with sales tax, income tax and business tax. Our main finding is
that the income tax seems to produce the most positive effects and the
businesses tax the most negative effects, though differences are small.
Journal: Applied Economics
Pages: 2653-2664
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.909576
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909576
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2653-2664
Template-Type: ReDIF-Article 1.0
Author-Name: Thanh Pham Thien Nguyen
Author-X-Name-First: Thanh Pham Thien
Author-X-Name-Last: Nguyen
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Parmendra Sharma
Author-X-Name-First: Parmendra
Author-X-Name-Last: Sharma
Title: How efficient is the banking system of Asia's next economic dragon? Evidence from rolling DEA windows
Abstract:
Vietnam is now widely regarded as a rising economic star and the next
economic dragon of Asia. Its banking system has played a key role in this
stellar economic performance. Since 1990, Vietnam's banking system has
undergone significant changes which saw its composition transformed from
being state banks only to now being both state as well as private banks,
and has performed generally well in terms of growth, profitability and
stability. But is it efficient? We conduct a dynamic analysis of the level
and trend of the cost and profit efficiency of the Vietnamese banking
sector over the period 1995 to 2011 taking into account the Asian and
Global Financial crises. We use the Data Envelopment Analysis (DEA)
Windows Analysis approach and adjust for bank size in calculating the
average efficiency score of the banking system. Our empirical findings
show that the cost and profit efficiency of the Vietnamese banking system
averaged around 0.90 and 0.75, respectively, with the state banks being
more efficient than the private banks and with efficiency experiencing an
upward trend over the analysis period. Moreover, we find that the Global
Financial Crisis (GFC) and Asian Financial Crisis (AFC) did not
significantly affect the efficiency of the whole Vietnamese banking
system.
Journal: Applied Economics
Pages: 2665-2684
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.909578
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909578
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2665-2684
Template-Type: ReDIF-Article 1.0
Author-Name: Saeed Heravi
Author-X-Name-First: Saeed
Author-X-Name-Last: Heravi
Author-Name: Peter Morgan
Author-X-Name-First: Peter
Author-X-Name-Last: Morgan
Title: A comparison of six sampling schemes for price index construction in a COICOP food group
Abstract:
This article compares the behaviour of sampling techniques for price
indices using a scanner data set as a model population. Indices produced
by two purposive deterministic cut-off designs and four probabilistic
sampling schemes are compared with each other and with the 'true'
population index from the whole data set. We found that the two
deterministic cut-off sampling schemes show much different behaviour from
the probabilistic sampling schemes. This is not unexpected, as the former
schemes have a very restricted focus with respect to the variety of
products. We also found that the probabilistic schemes are generally
closer to each other and the 'true' value than the deterministic cut-off
designs. The jackknife resampling technique is also explored as a means of
estimating the SE of the index and compared with the actual results from
repeated sampling.
Journal: Applied Economics
Pages: 2685-2699
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.909574
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909574
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2685-2699
Template-Type: ReDIF-Article 1.0
Author-Name: Shuddhasattwa Rafiq
Author-X-Name-First: Shuddhasattwa
Author-X-Name-Last: Rafiq
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Determinants of renewable energy adoption in China and India: a comparative analysis
Abstract:
This article examines the dynamic relationships among output, carbon
emission and renewable energy generation of India and China during the
period 1972 to 2011 using a multivariate vector error correction model
(VECM). The results for India reveal unidirectional short-run causality
from carbon emission to renewable energy generation and from renewable
energy generation to output, whereas in the long run, the variables have
bidirectional causality. Causalities in China give a rather different
scenario, with a short-run unidirectional causality from output to
renewable energy and from carbon emission to renewable energy generation.
In the long run, for China, unidirectional causality is found from output
to renewable energy generation, while bidirectional causality is found
between carbon emission and renewable energy generation.
Journal: Applied Economics
Pages: 2700-2710
Issue: 22
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.909577
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909577
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Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2700-2710
Template-Type: ReDIF-Article 1.0
Author-Name: Val鲩e Chouard
Author-X-Name-First: Val鲩e
Author-X-Name-Last: Chouard
Author-Name: Daniel Fuentes Castro
Author-X-Name-First: Daniel
Author-X-Name-Last: Fuentes Castro
Author-Name: Delphine Irac
Author-X-Name-First: Delphine
Author-X-Name-Last: Irac
Author-Name: Matthieu Lemoine
Author-X-Name-First: Matthieu
Author-X-Name-Last: Lemoine
Title: Assessing the losses in euro area potential productivity due to the financial crisis
Abstract:
In this article, we show that the recent financial crisis has
significantly affected the potential total factor productivity (TFP) of
the four largest euro area economies, as well as that of the rest of the
euro area. We used a reduced-form equation of TFP, based on an approach
recently developed by Cahn and Saint-Guilhem (2010). Our empirical
findings show that the permanent impact on potential TFP varies across
countries from -3.9 points to -1.3 points in Q2 2012. When these losses
are incorporated, TFP gaps develop closely in line with capacity
utilization rates (CUR). Moreover, in the case of France, including CUR in
our TFP model improves the quasi-real-time reliability of TFP gap
estimates.
Journal: Applied Economics
Pages: 2711-2720
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.887193
File-URL: http://hdl.handle.net/10.1080/00036846.2014.887193
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Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Gaël Bertrand
Author-X-Name-First: Gaël
Author-X-Name-Last: Bertrand
Author-Name: Laurent Botti
Author-X-Name-First: Laurent
Author-X-Name-Last: Botti
Author-Name: Scott Tainsky
Author-X-Name-First: Scott
Author-X-Name-Last: Tainsky
Title: Cost efficiency of French rugby clubs
Abstract:
This article analyses the cost efficiency of French first-league rugby
clubs using a stochastic frontier model. The frontier estimation confirmed
that the model fits the data well with all coefficients correctly signed
and in line with the theoretical requirements. The results show that one
of the clubs is operating efficiently, with the majority of clubs
clustered around 20% inefficiency. Policy implications are derived.
Journal: Applied Economics
Pages: 2721-2732
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.907484
File-URL: http://hdl.handle.net/10.1080/00036846.2014.907484
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Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2721-2732
Template-Type: ReDIF-Article 1.0
Author-Name: Florian I. Schumacher
Author-X-Name-First: Florian I.
Author-X-Name-Last: Schumacher
Author-Name: Joilson Dias
Author-X-Name-First: Joilson
Author-X-Name-Last: Dias
Author-Name: Edinaldo Tebaldi
Author-X-Name-First: Edinaldo
Author-X-Name-Last: Tebaldi
Title: Two tales on human capital and knowledge spillovers: the case of the US and Brazil
Abstract:
This article uses a quasi-Mincerian approach to verify whether the
concentration of college-educated individuals employed in the business
support services sector and in the own sector contributes to increased
productivity in other sectors of the economy. We estimate the returns to
education using data from the 2008 US Current Population Survey (March
supplement) and from the 2008 Brazilian household survey. This article
finds evidence of a positive and significant human capital sectorial
spillover effect, which is consistent with Acemoglu's (1996) conjecture.
The sectorial concentration of highly educated workers contributes to
increase wages for all workers. This study also finds evidence of
increasing returns to education in Brazil and diminishing returns to
education in the United States. This finding may be explained by
differences in supply of skilled workers in both economies. In addition,
the short supply of highly skilled workers in Brazil likely explains the
importance of the spillover effect from the business supporting sector.
Journal: Applied Economics
Pages: 2733-2743
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.909575
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909575
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Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2733-2743
Template-Type: ReDIF-Article 1.0
Author-Name: Mikio Ito
Author-X-Name-First: Mikio
Author-X-Name-Last: Ito
Author-Name: Akihiko Noda
Author-X-Name-First: Akihiko
Author-X-Name-Last: Noda
Author-Name: Tatsuma Wada
Author-X-Name-First: Tatsuma
Author-X-Name-Last: Wada
Title: International stock market efficiency: a non-Bayesian time-varying model approach
Abstract:
This article develops a non-Bayesian methodology to analyse the
time-varying structure of international linkages and market efficiency in
G7 countries. We consider a non-Bayesian time-varying vector
autoregressive (TV-VAR) model, and apply it to estimate the joint degree
of market efficiency in the sense of Fama (1970, 1991). Our empirical
results provide a new perspective that the international linkages and
market efficiency change over time and that their behaviours correspond
well to historical events of the international financial system.
Journal: Applied Economics
Pages: 2744-2754
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.909579
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909579
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Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2744-2754
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Gauthier
Author-X-Name-First: Bernard
Author-X-Name-Last: Gauthier
Author-Name: Jonathan Goyette
Author-X-Name-First: Jonathan
Author-X-Name-Last: Goyette
Title: Taxation and corruption: theory and firm-level evidence from Uganda
Abstract:
This article develops a simple framework to analyse the negotiation over
bribe and tax payments during the tax collection process. We show that the
larger the bribe a firm offers to a tax collector, the larger the tax
rebate it gets. More particularly, we show that the negotiation over bribe
and tax payments hinges on four other factors: firms' official
liabilities, detection, firms' negotiation power and red tape costs
imposed on firms. Some of the predictions from the theoretical model are
tested using firm-level data from Uganda. We find that bribe and tax
payments are inversely related, thereby supporting the hypothesis of a
negotiation taking place between firms and tax collectors. In particular,
a 1% point increase in average bribe payments per employee is associated
with a 7% point reduction in average amount of tax payments per employee.
Results are robust to various instruments dealing with the endogenous
relationship between bribes and taxes.
Journal: Applied Economics
Pages: 2755-2765
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.909580
File-URL: http://hdl.handle.net/10.1080/00036846.2014.909580
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Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2755-2765
Template-Type: ReDIF-Article 1.0
Author-Name: Nicoletta Berardi
Author-X-Name-First: Nicoletta
Author-X-Name-Last: Berardi
Author-Name: Thomas Eife
Author-X-Name-First: Thomas
Author-X-Name-Last: Eife
Author-Name: Erwan Gautier
Author-X-Name-First: Erwan
Author-X-Name-Last: Gautier
Title: Optimal price setting during a currency changeover: theory and evidence from french restaurants
Abstract:
This article studies firms' price-setting decision during a currency
changeover. Buyers' difficulties with the new nominal price level may
create incentives to raise prices temporarily but doing so comes at the
risk of damaging a seller's standing as a fair retailer. We model firms'
trade-off and study conditions under which increasing or decreasing prices
is optimal. A difference-in-differences analysis based on micro-data of
French restaurants strongly supports the model's predictions. Prices
during the 2002 changeover in the European Monetary Union were less likely
to rise in larger restaurants, nontourist restaurants and when prices were
advertised.
Journal: Applied Economics
Pages: 2766-2782
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.914144
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914144
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Template-Type: ReDIF-Article 1.0
Author-Name: Robert Nakosteen
Author-X-Name-First: Robert
Author-X-Name-Last: Nakosteen
Author-Name: Michael Zimmer
Author-X-Name-First: Michael
Author-X-Name-Last: Zimmer
Title: Approval of social security disability appeals: analysis of judges' decisions
Abstract:
This article is an empirical analysis of decisions by judges regarding
requests by individuals for disability benefits. Applicants for disability
benefits who are twice denied through the normal process can appeal to one
of the Social Security Administration's administrative law judges, who
hold appointed positions. The data for this study are taken from decisions
made by approximately 1000 judges for cases heard from 2010 through 2012.
Using each judge as a unit of observation, the data reveal the number of
cases heard and the number of approvals granted. We augmented the data
with additional information on the presiding judge, and with data from the
state in which the court resides. The purpose of the study is to determine
whether a simple model can explain, first, the volume of decisions
rendered at the judge level and, second, the proportion of approvals.
Results indicate that the volume of decisions can be explained in part by
the judge's recent record of leniency. Evidence also supports the
hypothesis that approval outcomes depend on judges' professional tenure
and economic factors in the state of jurisdiction.
Journal: Applied Economics
Pages: 2783-2791
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.914147
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914147
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Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2783-2791
Template-Type: ReDIF-Article 1.0
Author-Name: Thi Hong Hanh Pham
Author-X-Name-First: Thi Hong Hanh
Author-X-Name-Last: Pham
Title: Financial structure in the age of globalization
Abstract:
Using a large panel data set covering 160 countries over the period 1990
to 2010, this article aims to address the question of how financial
structure (bank-based versus market-based system) changes when economies
are liberalized and opened to international capital markets. Specifically,
in this study, globalization is characterized not only by trade and
financial integration but also by other important aspects, such as social
globalization, political globalization and cultural globalization. The
empirical results support the impacts of globalization on financial
structure, which are, however, diverse and strongly depend on the way to
measure globalization and financial structure. Our finding also reveals a
significant change in financial structure after the globalization process,
except the case of low-income countries, in which financial structure
seems to be not correlated with either globalization process or other
macroeconomic variables.
Journal: Applied Economics
Pages: 2792-2813
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.914150
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914150
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Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2792-2813
Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Feito-Ruiz
Author-X-Name-First: Isabel
Author-X-Name-Last: Feito-Ruiz
Author-Name: Ana I. Fernᮤez
Author-X-Name-First: Ana I.
Author-X-Name-Last: Fernᮤez
Author-Name: Susana Men鮤ez-Requejo
Author-X-Name-First: Susana
Author-X-Name-Last: Men鮤ez-Requejo
Title: Determinants of the acquisition of listed versus unlisted firms in different legal and institutional environments
Abstract:
The aim of this article is to analyse the determinants of the decision to
acquire unlisted rather than listed firms in different legal and
institutional environments. We estimate a probit model considering the
mergers and acquisitions (M&As) announced by European listed firms (19
countries) that acquires worldwide listed or unlisted firms (36 countries)
in the period 2002-2007. Our results show that managerial opportunism is a
determinant in the acquisition of listed firms, occurring with greater
probability in acquiring countries with low shareholder and minority
shareholder protection. Information asymmetry is another relevant
determinant that promotes the acquisitions of unlisted firms. Furthermore,
the less developed the capital market in the country of the acquired firm,
the greater the probability of acquisitions of unlisted firms. This
article contributes to the M&A literature by showing that in addition to
managerial opportunism and information asymmetry, the legal and
institutional environments in both the acquiring and the target countries
are also relevant aspects explaining the decision of whether to acquire
listed or unlisted firms.
Journal: Applied Economics
Pages: 2814-2832
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.914146
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914146
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Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2814-2832
Template-Type: ReDIF-Article 1.0
Author-Name: Antti Saastamoinen
Author-X-Name-First: Antti
Author-X-Name-Last: Saastamoinen
Author-Name: Timo Kuosmanen
Author-X-Name-First: Timo
Author-X-Name-Last: Kuosmanen
Title: Is corruption grease, grit or a gamble? Corruption increases variance of productivity across countries
Abstract:
The effect of corruption on economic growth has attracted interest in
empirical development economics. The conventional view of corruption as
impediment for growth has been challenged by the 'grease-on-the-wheels'
hypothesis. We take a new perspective on the issue and suggest corruption
as macro risk, referred to as a 'gamble' hypothesis. Using cross-country
data and two alternative indicators of corruption, we find corruption to
be a significant driver of heteroscedasticity in total productivity. This
supports the new gamble hypothesis. We also note some misleading
interpretations in the previously published frontier applications. To
avoid these shortcomings, we apply a flexible semi-nonparametric
estimator.
Journal: Applied Economics
Pages: 2833-2849
Issue: 23
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.914149
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914149
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Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2833-2849
Template-Type: ReDIF-Article 1.0
Author-Name: Eero P䴤ri
Author-X-Name-First: Eero
Author-X-Name-Last: P䴤ri
Author-Name: Mika Vilska
Author-X-Name-First: Mika
Author-X-Name-Last: Vilska
Title: Performance of moving average trading strategies over varying stock market conditions: the Finnish evidence
Abstract:
This article examines the profitability of dual moving average crossover
(DMAC) trading strategies in the Finnish stock market over the period 1996
to 2012. It contributes to the existing technical analysis literature by
comparing for the first time the performance of DMAC trading portfolios of
individual stocks to the performance of index trading strategies based on
trading on an index that consists of the same stocks. The results show
that their relative performance varies over time, whereas previous studies
have documented outperformance of index trading strategies over trading
strategies of stock portfolios. Moreover, the great majority of 3020 DMAC
strategies examined in this article outperform the corresponding
buy-and-hold (B and H) strategy for both trading targets (i.e., OMX
Helsinki 25 index and individual stocks included in the index) in
out-of-sample tests. In addition, the decomposition of the
full-sample-period performance into separate bull- and bear-period
performance shows clearly that the outperformance of DMAC strategies over
B and H strategy is mostly attributable to their better performance during
bearish periods.
Journal: Applied Economics
Pages: 2851-2872
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.914145
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914145
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2851-2872
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Artz
Author-X-Name-First: Benjamin
Author-X-Name-Last: Artz
Author-Name: Ilker Kaya
Author-X-Name-First: Ilker
Author-X-Name-Last: Kaya
Title: The impact of job security on job satisfaction in economic contractions versus expansions
Abstract:
Job security, often measured using the perceived risk of job loss in the
near future, is a significant determinant of job satisfaction. We posit
that the impact job security has on job satisfaction is not only a
function of how likely it is that a worker loses a job but also how likely
it is that a worker could find another. The effect this has on worker job
satisfaction then is different depending on whether perceived job loss
occurs (or not) when job openings are scarce or when job openings are
plentiful. We use difference-in-differences analysis of the 1997 and 2008
waves from the National Study of the Changing Workforce to show that three
measures of job security increase private sector worker job satisfaction,
and reduce worker incentives to quit, more when job openings are
relatively scarce (during contractions) than when job openings are
relatively plentiful (during expansions). We find that our results are
strongest among less-educated workers.
Journal: Applied Economics
Pages: 2873-2890
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.914148
File-URL: http://hdl.handle.net/10.1080/00036846.2014.914148
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2873-2890
Template-Type: ReDIF-Article 1.0
Author-Name: G. R. Chen
Author-X-Name-First: G. R.
Author-X-Name-Last: Chen
Title: How do advertised brands benefit from private labels? An application of rational expectations models
Abstract:
Private labels have traditionally been viewed as a threat to advertised
brands. Contrary to traditional wisdom, this study uses a two-asset
rational expectations model to show that advertised brands could benefit
from private labels. While the manufacturer's advertising creates product
differentiation, the retailer's synchronous pricing strategy further
enhances the product differentiation and raises profits as well as the
efficiency of price discounts for the advertised brand. In addition, the
existence of private labels improves the advertising efficiency,
especially for newly introduced brands. The economic role of private
labels is not limited to taking a free ride on the manufacturer's
advertising efforts, and this role cannot be replaced by another
advertised brand.
Journal: Applied Economics
Pages: 2891-2902
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.916388
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916388
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2891-2902
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Cezar
Author-X-Name-First: Rafael
Author-X-Name-Last: Cezar
Title: The heterogeneous effect of finance on international trade
Abstract:
Is the impact of financial development on international trade
heterogeneous - being positive, negative or null - across manufacturing
sectors? And is it dependent on the level of sectoral requirement on
external finance for capital need? To examine these questions this article
uses a panel trade database on 21 manufacturing sectors in 80 countries
between 2000 and 2009. The analysis demonstrates that the effect of
financial development on trade is indeed heterogeneous by estimating a
coefficient for each sector and showing that the signs and significance
levels vary across them. The article also demonstrates that sectors with
strong reliance on external finance export higher volume from countries
with developed financial system and that financial development reduces
trade in industries with low financial dependence level.
Journal: Applied Economics
Pages: 2903-2919
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.916389
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916389
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2903-2919
Template-Type: ReDIF-Article 1.0
Author-Name: Jie Li
Author-X-Name-First: Jie
Author-X-Name-Last: Li
Author-Name: Han Yu
Author-X-Name-First: Han
Author-X-Name-Last: Yu
Title: Income inequality and financial reform in Asia: the role of human capital
Abstract:
We investigate whether financial reform can reduce income inequality in
Asia, with particular emphasis on the role of human capital. Extending
Galor and Zeira (1993), we demonstrate that financial reform is effective
in reducing income inequality, and the effect is more profound in a
country with higher human capital. Using the data for 18 countries in
Asia, the region with the most promising financial reform, we confirm our
theoretical finding. In addition, among disaggregated financial reforms,
lift of credit control, better banking supervision and security market
development seem to be significantly associated with reduction of income
inequality.
Journal: Applied Economics
Pages: 2920-2935
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.916390
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916390
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2920-2935
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Avdjiev
Author-X-Name-First: Stefan
Author-X-Name-Last: Avdjiev
Author-Name: Zheng Zeng
Author-X-Name-First: Zheng
Author-X-Name-Last: Zeng
Title: Credit growth, monetary policy and economic activity in a three-regime TVAR model
Abstract:
We employ a Threshold Vector Autoregression (TVAR) methodology in order to
examine the nonlinear nature of the interactions among credit market
conditions, monetary policy and economic activity. We depart from the
existing literature on the subject along two dimensions. First, we focus
on a model in which the relevant threshold variable describes the state of
economic activity rather than credit market conditions. Second, in
contrast to the existing TVAR literature, which concentrates exclusively
on single-threshold models, we allow for the presence of a second
threshold, which is overwhelmingly supported by all relevant statistical
tests. Our results indicate that the dynamics of the interactions among
credit market conditions, monetary policy and economic activity change
considerably as the economy moves from one phase of the business cycle to
another and that single-threshold TVAR models are too restrictive to fully
capture the nonlinear nature of those interactions. The impact of most
shocks tends to be largest during periods of subpar economic activity and
smallest during times of moderate economic growth. By contrast, credit
risk shocks have the largest impact when output growth is considerably
above its long-term trend.
Journal: Applied Economics
Pages: 2936-2951
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.916391
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916391
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2936-2951
Template-Type: ReDIF-Article 1.0
Author-Name: D. Flannery
Author-X-Name-First: D.
Author-X-Name-Last: Flannery
Author-Name: J. Cullinan
Author-X-Name-First: J.
Author-X-Name-Last: Cullinan
Title: Where they go, what they do and why it matters: the importance of geographic accessibility and social class for decisions relating to higher education institution type, degree level and field of study
Abstract:
This article considers the impact of geographic accessibility and social
class on school leavers when making decisions relating to higher education
institution (HEI) type, degree level and field of study. Using a novel and
comprehensive Irish data set, we consider a number of joint decisions
facing school leavers in relation to where and what to study and employ a
range of bivariate choice models which allows us to control for
correlations in these decisions. We find that geographic accessibility and
social class play an important role in determining outcomes relating to
HEI type, degree level and field of study. We argue that these decisions
are important in terms of future labour market and other outcomes for
school leavers and that current policy in Ireland does not go far enough
in mitigating the impact of distance and socio-economic barriers on these
outcomes.
Journal: Applied Economics
Pages: 2952-2965
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.916392
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916392
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2952-2965
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Stephen M. Miller
Author-X-Name-First: Stephen M.
Author-X-Name-Last: Miller
Title: Housing and the Great Depression
Abstract:
This article considers the structural stability of the relationship
between the real housing price and real GDP per capita for an annual
sample that includes the Great Depression. We test for structural change
in parameter values using a sample of annual US data from 1890 to 1952.
The article examines the long-run and short-run dynamic relationships
between the real housing price and real GDP per capita to determine
whether these relationships experienced structural change over the sample
period. We find that temporal Granger causality exists between these two
variables only for subsamples that include the Great Depression. For the
other subsample periods as well as for the entire sample period, no
relationship exists between these variables.
Journal: Applied Economics
Pages: 2966-2981
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.916393
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916393
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2966-2981
Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Mart𓐊Author-X-Name-First: Luisa
Author-X-Name-Last: Mart𓐊Author-Name: Rosa Puertas
Author-X-Name-First: Rosa
Author-X-Name-Last: Puertas
Author-Name: Leandro Garc𨀍
Author-X-Name-First: Leandro
Author-X-Name-Last: Garc𨀍
Title: The importance of the Logistics Performance Index in international trade
Abstract:
Logistics and transport increasingly play a pivotal role in international
trade relations. The Logistics Performance Index (LPI) analyses
differences between countries in terms of customs procedures, logistics
costs and the quality of the infrastructure for overland and maritime
transport. The aim of this article is to analyse the impact that each of
these components has on trade in emerging economies using a gravity model.
Furthermore, the study also attempts to detect possible advances in
logistics in developing countries, which are grouped into five regions
(Africa, South America, Far East, Middle East and Eastern Europe) by
comparing the first LPI data published in 2007 with the most recent data,
released in 2012. The results obtained reveal that improvements in any of
the components of the LPI can lead to significant growth in a country's
trade flows. Specifically, LPI components are becoming increasingly
important for international trade in many countries in Africa, South
America and Eastern Europe.
Journal: Applied Economics
Pages: 2982-2992
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.916394
File-URL: http://hdl.handle.net/10.1080/00036846.2014.916394
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2982-2992
Template-Type: ReDIF-Article 1.0
Author-Name: Bo Xiong
Author-X-Name-First: Bo
Author-X-Name-Last: Xiong
Author-Name: Sixia Chen
Author-X-Name-First: Sixia
Author-X-Name-Last: Chen
Title: Estimating gravity equation models in the presence of sample selection and heteroscedasticity
Abstract:
Gravity models are widely used to explain patterns of trade. However, two
stylized features of trade data, sample selection and heteroscedasticity
challenge the estimation of gravity models. We propose a two-step method
of moments (TS-MM) estimator that deals with both issues. The Monte-Carlo
experiments show that the TS-MM estimates are resistant to various
combinations of sample selection and heteroscedasticity. Moreover, the
TS-MM estimator performs reasonably well even when the data generating
process deviates from the TS-MM assumptions. We revisit the world trade in
1990 to illustrate the usefulness of the proposed model, with emphasis on
the identification of the extensive margin of trade.
Journal: Applied Economics
Pages: 2993-3003
Issue: 24
Volume: 46
Year: 2014
Month: 8
X-DOI: 10.1080/00036846.2014.920481
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920481
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Handle: RePEc:taf:applec:v:46:y:2014:i:24:p:2993-3003
Template-Type: ReDIF-Article 1.0
Author-Name: Md Akhtaruzzaman
Author-X-Name-First: Md
Author-X-Name-Last: Akhtaruzzaman
Author-Name: Paul Docherty
Author-X-Name-First: Paul
Author-X-Name-Last: Docherty
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Title: Interest rate, size and book-to-market effects in Australian financial firms
Abstract:
The Fama-French three-factor model (1993) has been extensively used to
study the pricing of nonfinancial stocks. This study provides the first
examination of the pricing of Australian financial stocks using the
Fama-French framework. The four-factor model (market, size, book-to-market
and momentum) augmented with the level, slope and curvature of the
interest rate term structure is used to examine the pricing of Australian
financial stocks. The interest rate factors have not been previously
considered for pricing Australian stocks within the Fama-French framework.
Consistent with US evidence, we use a system-based estimation to show that
the size and book-to-market factors are not priced in the cross section of
the equity returns of Australian financial stocks. Momentum and term
spread are priced in the equity returns of both financial and nonfinancial
stocks. These findings are robust to the inclusion of control variables
such as default spread, the inflation rate and a dummy variable for the
global financial crisis.
Journal: Applied Economics
Pages: 3005-3020
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.920478
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920478
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3005-3020
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner
Author-X-Name-First: Kurt A.
Author-X-Name-Last: Hafner
Title: Technology spillover effects and economic integration: evidence from integrating EU countries
Abstract:
The article uses time series for the period 1981-2008 to estimate the
impact of foreign technology spillover effects on Greece, Ireland,
Portugal and Spain, representing the integrating European Union (EU)
countries. I restrict technology diffusion to EU-12 countries and compare
the results to unrestricted technology diffusion from a sample of 32 OECD
countries. Accounting for nonstationarity and co-integration, the dynamic
OLS estimator is used to estimate the impact of foreign R&D stock on
labour productivity, taking into account patent-, trade- and FDI-related
technology diffusion channels. I find empirical evidence for trade-related
foreign technology spillover effects for Greece and Ireland if technology
diffusion is unrestricted. Restricting technology diffusion to EU-12
countries, there are significant foreign technology spillover effects from
European integration for Portugal (patent related) and Spain (trade and
FDI related). Moreover, the domestic R&D stock and education are
significant drivers for labour productivity in integrating EU countries.
The empirical results are robust for different regression specifications
and sources of technology diffusion.
Journal: Applied Economics
Pages: 3021-3036
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.920479
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920479
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3021-3036
Template-Type: ReDIF-Article 1.0
Author-Name: Nakil Sung
Author-X-Name-First: Nakil
Author-X-Name-Last: Sung
Title: Market concentration and competition in OECD mobile telecommunications markets
Abstract:
This study analyses the progress of market concentration in OECD member
states' mobile telecommunications markets and evaluates the relationship
between market concentration and performance. Using annual panel data from
24 OECD member states for the 1998-2011 period, the study estimates
regression equations for market concentration, mobile prices and profits.
The empirical results indicate that the more concentrated the mobile
market, the higher the prices and profits, providing support for the
market power hypothesis. If this hypothesis holds, then market
concentration can be a useful indicator of market performance. On the
other hand, the applicability of the hypothesis is unclear for the second
half of the sample period. The results provide evidence that regulatory
policies influence the structure and performance of mobile markets.
Journal: Applied Economics
Pages: 3037-3048
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.920480
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920480
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3037-3048
Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Musshoff
Author-X-Name-First: Oliver
Author-X-Name-Last: Musshoff
Author-Name: Norbert Hirschauer
Author-X-Name-First: Norbert
Author-X-Name-Last: Hirschauer
Title: Using business simulation games in regulatory impact analysis - the case of policies aimed at reducing nitrogen leaching
Abstract:
In the past, regulatory impact analysis was predominantly based on the
rational-choice-assumption of a completely informed and exclusively
profit-maximizing homo oeconomicus. Real economic actors, however, are
multiple-goal and boundedly rational decision-makers. An exclusive
reliance on rational-choice models therefore generates the risk that both
the pace and the type of behavioural adaptations to changing institutional
environments are misjudged. Against this background, this article
addresses three questions. First, can we use business simulation games as
a convincing but low-cost experimental tool for policy analysis? Second,
how do intentionally varied nitrogen extensification schemes impact the
behaviour of students who participate in an explorative business
simulation study? Third, do nitrogen reduction policies that are framed as
voluntary as opposed to prescriptive schemes have a different impact on
behaviour even if they lead to the same profits respectively? In our
business simulation game, the student-participants take the role of
farmers who are confronted with different policy measures aimed at
reducing nitrogen loads. The student-farmers react very differently to
different measures even though all measures have an identical impact on
profitability. This is an indication that the behavioural changes that can
be achieved per Euro of the taxpayers' money, and therefore the cost
efficiency (and smartness) of regulatory measures, are contingent on their
specific design.
Journal: Applied Economics
Pages: 3049-3060
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.920482
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920482
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3049-3060
Template-Type: ReDIF-Article 1.0
Author-Name: Kady Marie-Danielle Body
Author-X-Name-First: Kady Marie-Danielle
Author-X-Name-Last: Body
Author-Name: Liliane Bonnal
Author-X-Name-First: Liliane
Author-X-Name-Last: Bonnal
Author-Name: Jean-Fran篩s Giret
Author-X-Name-First: Jean-Fran篩s
Author-X-Name-Last: Giret
Title: Does student employment really impact academic achievement? The case of France
Abstract:
Student employment is usually thought to curb academic achievement. Our
research relating to a survey at a French university in 2012 emphasizes
the significance of the intensity of student working hours. Allowance for
the endogeneity of student employment reinforces the negative effects,
particularly for young people working more than 16 hours a week. However,
the academic achievement of those working fewer than 8 hours per week
seems unaffected. The type of employment also affects the chances of
success: students with public sector jobs appear to be less prone to
failure, possibly because of more flexible working hours.
Journal: Applied Economics
Pages: 3061-3073
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.920483
File-URL: http://hdl.handle.net/10.1080/00036846.2014.920483
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3061-3073
Template-Type: ReDIF-Article 1.0
Author-Name: An Chen
Author-X-Name-First: An
Author-X-Name-Last: Chen
Title: Incentive-compatible compensation and regulation
Abstract:
This article uses contingent claims analysis and regulatory constraints to
show how a bank can create incentive-compatible compensation for the
senior management aligned with the interests of the other stakeholders.
For this purpose, the remuneration package takes the form of a 'call
spread' on the bank's equity. Unlike regular stock option programmes, a
call spread limits the upside potential for the senior management. This
prevents unlimited risk taking. Additionally, a maximum regulatory default
probability also constrains risk-taking behaviour. We show under which
parameterizations the remuneration package and the regulatory constraint
offer equal incentives for the senior management.
Journal: Applied Economics
Pages: 3074-3081
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.922671
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922671
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3074-3081
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Malikane
Author-X-Name-First: Christopher
Author-X-Name-Last: Malikane
Author-Name: Tshepo Mokoka
Author-X-Name-First: Tshepo
Author-X-Name-Last: Mokoka
Title: The new Keynesian Phillips curve: endogeneity and misspecification
Abstract:
The wrong or insignificant sign of the forcing variable in the new
Keynesian Phillips curve estimations may be a result of the endogeneity of
the labour share and misspecification of real marginal cost in the
baseline model. We address the misspecification of real marginal cost by
formulating a broad measure that features the labour share, output gap and
supply shock variables. The endogeneity of the labour share is addressed
by using an appropriate lag of the labour share in the Phillips curve.
Reduced-form evidence from five developed and five emerging market
economies support the empirical validity of the NKPC.
Journal: Applied Economics
Pages: 3082-3089
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.922672
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922672
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3082-3089
Template-Type: ReDIF-Article 1.0
Author-Name: Maciej Albinowski
Author-X-Name-First: Maciej
Author-X-Name-Last: Albinowski
Author-Name: Piotr Ciżkowicz
Author-X-Name-First: Piotr
Author-X-Name-Last: Ciżkowicz
Author-Name: Andrzej Rzońca
Author-X-Name-First: Andrzej
Author-X-Name-Last: Rzońca
Title: Links between trust in the ECB and its interest rate policy
Abstract:
We analyse determinants of trust in the European Central Bank (ECB). Our
main finding is that when households have pessimistic expectations,
aggressive cuts in interest rates have an adverse effect on their trust in
central bank. This result is in accordance with the 'lack-of-confidence
shock' hypothesis developed by Schmitt-Groh頡nd Uribe (2012) and in
contrast with the 'fundamental shock' hypothesis which implies positive
effects of aggressive cuts for trust in the ECB. The result is robust to
various changes in the modelling approach.
Journal: Applied Economics
Pages: 3090-3106
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.922674
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922674
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3090-3106
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Kelly Burns
Author-X-Name-First: Kelly
Author-X-Name-Last: Burns
Title: Error correction modelling and dynamic specifications as a conduit to outperforming the random walk in exchange rate forecasting
Abstract:
The proposition that dynamic exchange rate models can outperform the
random walk in out-of-sample forecasting, in the sense that they produce
lower mean square errors, is examined and disputed. By using several
dynamic versions of three macroeconomic exchange rate models, it is
demonstrated that dynamic specifications outperform the corresponding
static models but improvement in the forecasting power may not be
sufficient for the dynamic models to perform better than the random walk.
The results are explained by suggesting that any dynamic specification or
transformation of the static model leads to the introduction of a lagged
dependent variable, which in effect is a random walk component. The
analysis leads to the conclusion that it is implausible to aim at beating
the random walk by augmenting a static model with a random walk component.
Journal: Applied Economics
Pages: 3107-3118
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.922675
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922675
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3107-3118
Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Neuenkirch
Author-X-Name-First: Matthias
Author-X-Name-Last: Neuenkirch
Title: Federal Reserve communications and newswire coverage
Abstract:
In this article, we explore the determinants of newswire coverage of
Federal Reserve (Fed) communications. Our sample covers all 344
forward-looking communications made in the period May 1999 to May 2004. We
find, first, that there is a higher likelihood of newswire coverage for
monetary policy reports and speeches by Chairman Greenspan than for
testimony and speeches by other Fed members. Furthermore, communications
with an explicit monetary policy inclination or tone different from the
current interest rate path are particularly likely to be covered. However,
the release of important macroeconomic news reduces the likelihood of
newswire coverage. Second, speeches by regional Fed presidents are
relatively less likely to be reported than speeches by Board members.
Nevertheless, newswire coverage of Fed president speeches is more likely
if central bank communication is stale. Finally, our results indicate that
Ben Bernanke played a distinguished role even before his Chairmanship.
Journal: Applied Economics
Pages: 3119-3129
Issue: 25
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.922676
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922676
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3119-3129
Template-Type: ReDIF-Article 1.0
Author-Name: Alita Nandi
Author-X-Name-First: Alita
Author-X-Name-Last: Nandi
Author-Name: Cheti Nicoletti
Author-X-Name-First: Cheti
Author-X-Name-Last: Nicoletti
Title: Explaining personality pay gaps in the UK
Abstract:
Using the British Household Panel Survey we estimate the effect on pay of
each of the Big Five personality traits for employed men living in the UK.
We add to the existing literature by estimating the role of factors such
as education and occupation in explaining personality pay gaps, by
allowing the personality traits to affect wage differently across
occupations, education levels and other workers characteristics, and by
investigating personality pay gaps for high- and low-paid workers. We find
that openness to experience is the most relevant personality trait in
explaining wages, followed by neuroticism, agreeableness, extroversion and
conscientiousness. Openness and extroversion are rewarded while
agreeableness and neuroticism are penalized, but the openness pay gap is
totally explained by differences in worker characteristics, particularly
education and occupation.
Journal: Applied Economics
Pages: 3131-3150
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.922670
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922670
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3131-3150
Template-Type: ReDIF-Article 1.0
Author-Name: Cem Çebi
Author-X-Name-First: Cem
Author-X-Name-Last: Çebi
Author-Name: Ali Askın Çulha
Author-X-Name-First: Ali Askın
Author-X-Name-Last: Çulha
Title: The effects of government spending shocks on the real exchange rate and trade balance in Turkey
Abstract:
The aim of this study is to investigate the effects of government spending
shocks on the real exchange rate and foreign trade balance in Turkey for
the period of 2002:01-2012:04 within a structural VAR framework. The
analysis shows that a positive shock to the government spending tends to
induce real exchange rate appreciation and deterioration in trade balance.
We also find that the composition of the government spending matters.
Although shocks to the government nonwage consumption generate an
appreciation in the real exchange rate and worsening of the trade balance,
the effects of government investment shocks remain insignificant.
Furthermore, the analysis demonstrates that shocks to government spending
are associated with a rise in taxes, which is indicative of a
spending-driven tax adjustment process in Turkey.
Journal: Applied Economics
Pages: 3151-3162
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.922673
File-URL: http://hdl.handle.net/10.1080/00036846.2014.922673
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3151-3162
Template-Type: ReDIF-Article 1.0
Author-Name: Miroslava Rajcaniova
Author-X-Name-First: Miroslava
Author-X-Name-Last: Rajcaniova
Author-Name: d'Artis Kancs
Author-X-Name-First: d'Artis
Author-X-Name-Last: Kancs
Author-Name: Pavel Ciaian
Author-X-Name-First: Pavel
Author-X-Name-Last: Ciaian
Title: Bioenergy and global land-use change
Abstract:
This is the first article that econometrically estimates the global
land-use change impact of bioenergy. Applying time-series analytical
mechanisms to fuel, biofuel and agricultural commodity prices and
production, we estimate the long-run relationship between energy prices,
bioenergy production and the global land-use change. Our results suggest
that rising energy prices and bioenergy production significantly
contribute to the global land-use change both through the direct and
indirect land-use change impact. Globally, the total agricultural area
yearly increases by 35 578.1 thousand ha due to increasing oil price, and
by 12 125.1 thousand ha due to increasing biofuel production, which
corresponds to 0.73% and 0.25% of the total worldwide agricultural area,
respectively. Soya land-use change and wheat land-use change have the
highest elasticities with respect to both oil price and biofuel
production. In contrast, nonbiomass crops (grassland and rice) have
negative land-use change elasticities. Region-specific results suggest
that South America faces the largest yearly total land-use change
associated with oil price increase (+10 600.7 thousand ha), whereas Asia
(+8918.6 thousand ha), South America (+4024.9 thousand ha) and North
America (+1311.5 thousand ha) have the largest yearly total land-use
change associated with increase in biofuel production.
Journal: Applied Economics
Pages: 3163-3179
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.925076
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925076
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3163-3179
Template-Type: ReDIF-Article 1.0
Author-Name: Jason Loughrey
Author-X-Name-First: Jason
Author-X-Name-Last: Loughrey
Author-Name: Thia Hennessy
Author-X-Name-First: Thia
Author-X-Name-Last: Hennessy
Title: Hidden underemployment among Irish farm holders 2002-2011
Abstract:
This article examines the scale of hidden underemployment on Irish farms
from 2002 to 2011. We provide a measure of hidden underemployment that is
not captured by the national-level statistics. Hidden underemployment can
be attributed to a number of factors relating to inadequate employment
situations as described at the 16th International Conference of Labour
Statisticians such as low productivity, the poor utilization of skills and
other factors specific to agriculture. We place particular attention upon
the potential role of off-farm labour supply in solving the
underemployment problem. We utilize a two-stage residual inclusion model
and a random effects probit model to examine the forces behind farm
underemployment. We utilize a fixed effects model to examine the factors
driving the severity of farm underemployment. Our findings suggest that
instances of hidden underemployment increased between 2002 and 2011.
Hidden underemployment appears to be a stubborn problem and is related to
the absence of off-farm employment, low yield, livestock intensity and
smaller than average farm size in the sheep and drystock cattle sectors in
particular.
Journal: Applied Economics
Pages: 3180-3192
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.925077
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925077
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3180-3192
Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yil Choi
Author-X-Name-First: Yong-Yil
Author-X-Name-Last: Choi
Title: Lax money supply under globalization and detecting an early sign to anticipate deep recession
Abstract:
This article uncovers a macroeconomic threshold for avoiding deep
recession under globalization. The analysis shows that there is a long-run
natural rate of substitution between the broadest measure of money
balances and nominal government spending, namely the natural fiscal
velocity. Applying this threshold to the actual economy can give us two
benefits: first, comparing the actual rate of substitution between the
broadest measure of money balances and nominal government spending with
the natural fiscal velocity can provide an early sign to anticipate deep
recession under globalization. Second, controlling the actual fiscal
velocity so as not to exceed the natural one is such a macro calibration
that the authorities can easily justify their pre-emptive actions as a
means of avoiding a deep recession trap under globalization.
Journal: Applied Economics
Pages: 3193-3201
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.925078
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925078
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3193-3201
Template-Type: ReDIF-Article 1.0
Author-Name: Martha Jim鮥z
Author-X-Name-First: Martha
Author-X-Name-Last: Jim鮥z
Author-Name: Jaime Arturo Matus
Author-X-Name-First: Jaime Arturo
Author-X-Name-Last: Matus
Author-Name: Miguel Angel Mart
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Mart
Title: Economic growth as a function of human capital, internet and work
Abstract:
The World Bank has suggested the need to enhance Information and
Communication Technology skills in all sectors because a 10% increase in
internet connectivity was found to boost GDP growth by 1.38%.
Simultaneously, the OECD argued that high internet access rates generate a
2% increase in GDP. Because the internet positively affects economic
growth, we investigated the relationship between an economically active
population, human capital and technology to evaluate these effects in
Mexico. A data series from 1991 to 2010 was analysed in three stages
according to the least-squares method. A Cobb-Douglas function under the
Solow model was considered. Technology and internet access were found to
positively affect top-level students and graduate students and thus
contribute to the global innovation index.
Journal: Applied Economics
Pages: 3202-3210
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.925079
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925079
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3202-3210
Template-Type: ReDIF-Article 1.0
Author-Name: Chen Ling
Author-X-Name-First: Chen
Author-X-Name-Last: Ling
Author-Name: David Scrogin
Author-X-Name-First: David
Author-X-Name-Last: Scrogin
Title: Optimal pricing of public lotteries and comparison of competing mechanisms
Abstract:
This article establishes optimal pricing rules for rationing indivisible
units of rival and otherwise nonexcludable goods by lottery or a hybrid of
a lottery and outright sale by posted price. Given the distributional
objective of maximizing expected consumer surplus, the solutions to
unconstrained and constrained versions of the pricing problem may be
expressed in classic inverse elasticity form, with the lottery price
appearing as an entry fee, user fee or a combination of the two. Numerical
analysis of a rich class of private value distributions indicates that
sizable gains in expected consumer surplus can be realized over
competitive pricing and zero pricing.
Journal: Applied Economics
Pages: 3211-3223
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.925080
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925080
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3211-3223
Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Cheng Liu
Author-X-Name-First: Yi-Cheng
Author-X-Name-Last: Liu
Author-Name: I-Cheng Yeh
Author-X-Name-First: I-Cheng
Author-X-Name-Last: Yeh
Title: Which drives abnormal returns, over- or under-reaction? Studies applying longitudinal analysis
Abstract:
This article combined both cross-sectional and time-series longitudinal
analysis to identify that factor anomalies are driven by either
over-reaction or under-reaction. The basic principle is, first, use a
factor to form 10 portfolios in the t quarter, then
observe the average prices and returns of the 10 portfolios for the
previous four quarters and for the following four quarters as well.
Samples in this study contain all stocks listed in the US from 1990 to
2010. The empirical evidence shows that the reason for the abnormal
returns of value (book-to-price ratios, earnings-to-price ratios,
sales-to-price ratios), scale and liquidity factors is over-reaction.
Meanwhile, the reason for the abnormal returns of growth factors (return
on equity, return on assets and revenue growth rate) is under-reaction.
The results provide significant policy implications. The anomaly returns
of the value, scale and liquidity factors last longer and are more
appropriate to be employed for long-run investment while the growth
factors are better suited for short-run investment. Furthermore, a more
profitable stock-selection strategy can be formed by simultaneously
considering the above two types of factors to capture both of these two
sources of anomaly returns.
Journal: Applied Economics
Pages: 3224-3235
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.925081
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925081
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3224-3235
Template-Type: ReDIF-Article 1.0
Author-Name: Sule Akkoyunlu
Author-X-Name-First: Sule
Author-X-Name-Last: Akkoyunlu
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: Does the law of one price hold in a high-inflation environment? A tale of two cities in Turkey
Abstract:
This study addresses the price convergence in two cities in Turkey
(Istanbul and Ankara) using annual data over the three-quarters of the
twentieth century (1922-1998), characterized by prevailing high inflation
rates for most of the period. In contrast to the rest of the literature
addressing convergence in price levels with a typical result of extremely
slow convergence rates at best, we argue that convergence is much easier
detected in growth rates rather than levels of prices. We suggest using
the bounds testing procedure of Pesaran et al. (2001) for
this purpose. We find a clear-cut evidence on the existence of a common
driving force behind inflation dynamics in Istanbul and Ankara - a finding
that is in contrast with the results typically reported in related
literature.
Journal: Applied Economics
Pages: 3236-3245
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.925190
File-URL: http://hdl.handle.net/10.1080/00036846.2014.925190
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3236-3245
Template-Type: ReDIF-Article 1.0
Author-Name: Md. Al Mamun
Author-X-Name-First: Md.
Author-X-Name-Last: Al Mamun
Author-Name: Guneratne B. Wickremasinghe
Author-X-Name-First: Guneratne B.
Author-X-Name-Last: Wickremasinghe
Title: Dynamic linkages between diffusion of Information Communication Technology and labour productivity in South Asia
Abstract:
At present, diffusion of Information Communication Technology (ICT) is a
significant area of concern for sustainable development and growth of a
country. Regions with abundant labour such as South Asia require
significant improvements in the diffusion of ICT to achieve higher
productivity for their labour, which in turn can increase the pace of
economic growth. In this context, the objective of this study is to
investigate whether ICT could be used to improve labour productivity for
countries in South Asia. This study first investigates the general status
of diffusion of ICT among South Asian countries. The initial results based
on descriptive statistics indicate that there is a significant gap among
the South Asian countries, with Maldives having the highest ICT
facilities. Second, using robust panel data methodologies, this study
concludes that South Asia's drive for higher productivity of its abundant
labour force can substantially be improved in the long-run by increasing
diffusion of ICT in the presence of trade openness as well as domestic
capital formulation.
Journal: Applied Economics
Pages: 3246-3260
Issue: 26
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.927573
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927573
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Handle: RePEc:taf:applec:v:46:y:2014:i:26:p:3246-3260
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Bernhard
Author-X-Name-First: Sarah
Author-X-Name-Last: Bernhard
Author-Name: Eva Kopf
Author-X-Name-First: Eva
Author-X-Name-Last: Kopf
Title: Courses or individual counselling: does job search assistance work?
Abstract:
How does labour market policy affect welfare recipients and long-term
unemployed people? We investigate whether job search assistance (JSA)
helps disadvantaged individuals to find jobs and whether courses or
individual counselling is more successful in reaching this goal. To
evaluate individual employment effects, we apply a quasi-experimental
design and construct suitable comparison groups using propensity score
matching methods. We compare participants to nonparticipants as well as
participants of both schemes directly. Our article benefits from access to
rich administrative data from the German Federal Employment Agency. When
comparing participants to nonparticipants, results suggest that the
individual JSA does not affect participants' employment prospects at all
and that the course JSA even decreased their employment chances. At the
same time, differences in these effects can be ascribed to programme
design differences and to differences in the groups of participants.
Therefore, we compare both programmes directly to each other, that is, we
use the other programme participants as a comparison group, respectively.
We found some evidence that individual JSA performs better than course
JSA.
Journal: Applied Economics
Pages: 3261-3273
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.927567
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927567
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3261-3273
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Benz
Author-X-Name-First: Sebastian
Author-X-Name-Last: Benz
Author-Name: Mario Larch
Author-X-Name-First: Mario
Author-X-Name-Last: Larch
Author-Name: Markus Zimmer
Author-X-Name-First: Markus
Author-X-Name-Last: Zimmer
Title: The structure of the German economy
Abstract:
Exploiting the information contained in an economy's input-output matrix
and using the novel approach developed by Fisher and Marshall (2011), we
calculate Rybczynski effects and Stolper-Samuelson effects for Germany in
2007. We show how sectoral output and factor remuneration react to
exogenous changes of factor endowments and product prices, respectively.
These calculations are implemented using two different models comprising
one with labour and capital as the classical production factors and one
where we introduce patent stock as an additional factor of production. In
the former, we further differentiate between a scenario where all
production factors are mobile and one with sector-specific capital. In the
latter analysis, we measure the impact of innovation-targeting policy
action for sectoral output. Positive Rybczynski effects of patents and
high-skilled workers are strongest in knowledge-intensive sectors, while
other sectors contract. The introduction of patents as a further
production factor has only minor influence on the Rybczynski effects of
other factors.
Journal: Applied Economics
Pages: 3274-3283
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.927568
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927568
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3274-3283
Template-Type: ReDIF-Article 1.0
Author-Name: David Vera
Author-X-Name-First: David
Author-X-Name-Last: Vera
Author-Name: Kazuki Onji
Author-X-Name-First: Kazuki
Author-X-Name-Last: Onji
Author-Name: Prasanna Gai
Author-X-Name-First: Prasanna
Author-X-Name-Last: Gai
Title: Are all financial crises created equal? Wholesale funding and two financial crises
Abstract:
We use financial information on banks from Asia, Europe, North America and
Oceania to examine the role of wholesale funding on the transmission of
financial crises to bank lending, as well as to study the response of
financial institutions in different regions during the crises. We consider
the role of wholesale funding during the Global Financial Crisis (GFC) and
Asian Financial Crisis (AFC). Our results suggest that during the GFC,
wholesale funding dependence had a negative effect on loans growth across
regions, but with substantial regional heterogeneity. The growth of loans
from financial institutions in Asia and Europe was consistently sensitive
to wholesale funding dependence. Although wholesale funding did not play a
significant role in the transmission mechanism of the AFC, a subsample of
financial institutions in Asia, who depended more heavily on wholesale
funding, experienced a faster loan growth and may have been able to better
withstand the crisis.
Journal: Applied Economics
Pages: 3284-3299
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.927569
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927569
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3284-3299
Template-Type: ReDIF-Article 1.0
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Christian J. Murray
Author-X-Name-First: Christian J.
Author-X-Name-Last: Murray
Author-Name: David H. Papell
Author-X-Name-First: David H.
Author-X-Name-Last: Papell
Title: Median-unbiased estimation of structural change models: an application to real exchange rate persistence
Abstract:
Measuring deviations from purchasing power parity has been the subject of
extensive investigation. The most common practice in empirical research
for measuring real exchange rate persistence is to estimate univariate
autoregressive (AR) time series models and calculate the half-life,
defined as the number of periods for a unit shock to a time series to
decay by 50%. In the presence of structural change, there are two
potential biases in the parameter estimates of AR models: (1) a downward
small sample median-bias and (2) an upward bias, which occurs when
structural change is present and ignored. We conduct a variety of Monte
Carlo simulations and demonstrate that the existence of structural change
causes a substantial increase in the small sample bias documented in
Andrews (1993). We then propose an extension of median-unbiased
estimation, which explicitly accounts for structural change, and apply
these methods to estimate half-lives of several long-horizon real exchange
rates analysed by Lothian and Taylor (1996) and Taylor (2002). The upward
bias from neglecting structural change dominates the downward median-bias
for these real exchange rates. When structural change is present and
accounted for, the median-unbiased half-lives towards a changing mean
decrease and the confidence intervals tighten.
Journal: Applied Economics
Pages: 3300-3311
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.927570
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927570
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3300-3311
Template-Type: ReDIF-Article 1.0
Author-Name: Hernan A. Tejeda
Author-X-Name-First: Hernan A.
Author-X-Name-Last: Tejeda
Author-Name: Barry K. Goodwin
Author-X-Name-First: Barry K.
Author-X-Name-Last: Goodwin
Title: Dynamic multiproduct optimal hedging in the soybean complex - do time-varying correlations provide hedging improvements?
Abstract:
Optimal multiproduct time-varying hedge ratios are determined - for a
soybean complex - and their risk-mitigating impact is contrasted over
single-commodity time-varying and naive hedge ratios. A parsimonious
regime-switching dynamic correlation model is employed, with the estimated
dynamic correlation matrix among prices varying between two different
levels, and the time-varying correlations being applied to the
multiproduct setting. Findings obtained are three-fold. First, there is
significant evidence that estimated simultaneous correlations among
different commodities' prices (e.g. soybean spot and soybean meal futures)
attain different values along the time series. Second, there is a
substantial reduction in margin variance provided by the optimal
multiproduct time-varying hedge ratios over single time-varying and naive
hedge ratios, for both in- and out-of-sample data. Third, average optimal
multiproduct time-varying hedge ratios for soybean and soybean meal (0.82
and 0.74, respectively; for out-of-sample data) are significantly below
the naive full hedge ratio, providing risk mitigation at lower costs.
Journal: Applied Economics
Pages: 3312-3322
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.927571
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927571
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3312-3322
Template-Type: ReDIF-Article 1.0
Author-Name: Sandra Cavaco
Author-X-Name-First: Sandra
Author-X-Name-Last: Cavaco
Author-Name: Patricia Crifo
Author-X-Name-First: Patricia
Author-X-Name-Last: Crifo
Title: CSR and financial performance: complementarity between environmental, social and business behaviours
Abstract:
This article analyses the interactions between various dimensions of
corporate social responsibility (CSR) that mediate the relationship
between CSR and financial performance. We hypothesize that the absence of
consensus in the empirical literature on the CSR-financial performance
relationship may be explained by the existence of synergies
(complementarity) and trade-offs (substitutability) between the different
CSR components. We investigate such relationship using a final unbalanced
panel sample of 1094 observations (around 300 firms per year) from 15
countries over the 2002-2007 period. Our results show that responsible
behaviours towards employees (human resources dimension) and towards
customers and suppliers (business behaviour dimension) appear as
complementary inputs of financial performance, indicating mutual benefits
and less conflict between those stakeholders. Conversely, responsible
behaviours towards customers and suppliers and towards the environment
appear as substitutable inputs of financial performance, suggesting more
conflict between or over-investment towards those stakeholders.
Journal: Applied Economics
Pages: 3323-3338
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.927572
File-URL: http://hdl.handle.net/10.1080/00036846.2014.927572
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3323-3338
Template-Type: ReDIF-Article 1.0
Author-Name: D. Ribar
Author-X-Name-First: D.
Author-X-Name-Last: Ribar
Author-Name: Christopher A. Swann
Author-X-Name-First: Christopher A.
Author-X-Name-Last: Swann
Title: If at first you don't succeed: applying for and staying on the Supplemental Nutrition Assistance Program
Abstract:
We examine households' applications to and participation in the
Supplemental Nutrition Assistance Program using administrative records
from South Carolina. We model application resolutions with multinomial
logit (MNL) specifications where the possible outcomes are acceptance,
denial due to income ineligibility, denial due to a failure to provide
sufficient information and denial due to other reasons. For cases with
successful applications, we model the durations of participation spells
using competing risk hazard specifications that distinguish among exits
that result from missed recertifications, financial ineligibility,
incomplete or missing information and other reasons. The application and
hazard outcomes depend on past programme behaviour and observed
characteristics. The results indicate that a household's application and
participation history affect its subsequent application success and
programme tenure.
Journal: Applied Economics
Pages: 3339-3350
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.929623
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929623
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3339-3350
Template-Type: ReDIF-Article 1.0
Author-Name: Fadi Fawaz
Author-X-Name-First: Fadi
Author-X-Name-Last: Fawaz
Author-Name: Masha Rahnama
Author-X-Name-First: Masha
Author-X-Name-Last: Rahnama
Author-Name: Victor J. Valcarcel
Author-X-Name-First: Victor J.
Author-X-Name-Last: Valcarcel
Title: A refinement of the relationship between economic growth and income inequality
Abstract:
There is mixed evidence in the literature of a clear relationship between
income inequality and economic growth. Most of that work has focused
almost exclusively on developed economies. In what we believe to be a
first effort, our emphasis is solely on developing economics, which we
classify as high-income and low-income developing countries (HIDC and
LIDC). We make such distinction on theoretical and empirical grounds.
Empirically, the World Bank has classified developing economies in this
manner since 1978. The data in our sample are also supportive of such
classifications. We provide theoretical scaffolding that uses asymmetric
credit constraints as a premise for separating developing economies in
such a way. We find strong evidence of a negative relationship between
income inequality and economic growth in LIDC to be in stark contrast with
a positive inequality-growth relationship for HIDC. Both correlations are
statistically significant across multiple econometric specifications.
Using international data from 1960 to 2010, this article explores the
effect of income inequality on economic growth using dynamic panel
technique, such as system generalized method of moments (GMM) that is
believed to mitigate endogenous problem. These results are strikingly
contrasting to the previous estimation results of Forbes (2000) displaying
significant positive correlation between two variables in the short to
medium term.
Journal: Applied Economics
Pages: 3351-3361
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.929624
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929624
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3351-3361
Template-Type: ReDIF-Article 1.0
Author-Name: Zhaohua Wang
Author-X-Name-First: Zhaohua
Author-X-Name-Last: Wang
Author-Name: Chao Feng
Author-X-Name-First: Chao
Author-X-Name-Last: Feng
Title: The impact and economic cost of environmental regulation on energy utilization in China
Abstract:
This article utilizes three data envelopment analysis-based models: a no
environmental regulation model, a weak environmental regulation model and
a strong environmental regulation model to reveal the impact of
environmental regulation on China's regional total-factor energy
efficiency (TFEE) during the period of 2003-2010. To take a further step,
these three models are adjusted for calculating the correspondingly
macro-economic cost of environmental regulation. The estimation results
show that at present, the level of China's environmental regulation is
relatively low, and an enhancing of environmental regulation would lead to
a sufficient increase of China's regional TFEE with an enormous economic
cost as its price. That means in China, the nationwide environmental
stress is high, and the regulation cost is very huge. Strengthening
environmental regulation would inevitably have some negative influences on
China's economy in the short run. Based on our findings, some
corresponding policies are also proposed in this article.
Journal: Applied Economics
Pages: 3362-3376
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.929629
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929629
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Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Carlos Barros
Author-X-Name-First: Carlos
Author-X-Name-Last: Barros
Author-Name: Nicolas Peypoch
Author-X-Name-First: Nicolas
Author-X-Name-Last: Peypoch
Title: Long memory and fractional integration in the housing price series of London and Paris
Abstract:
This article deals with the analysis of house price indexes from a
long-range dependence viewpoint. In particular, it estimates the
fractional differencing parameter in the London and Paris house price
series recognizing in some cases the potential seasonality and allowing
for breaks in the data. Moreover, it analyses the stability of the
parameters across the sample period examined. It is concluded that the
series are nonstationary but mean reverting in some cases and very
persistent in others. Policy implications are derived.
Journal: Applied Economics
Pages: 3377-3388
Issue: 27
Volume: 46
Year: 2014
Month: 9
X-DOI: 10.1080/00036846.2014.929630
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Handle: RePEc:taf:applec:v:46:y:2014:i:27:p:3377-3388
Template-Type: ReDIF-Article 1.0
Author-Name: Ji-Liang Shiu
Author-X-Name-First: Ji-Liang
Author-X-Name-Last: Shiu
Title: Two separated effects of employer-provided health insurance on job mobility
Abstract:
We estimate the effect of employer-provided health insurance (EPHI) on job
mobility via a dynamic model of joint employment and health insurance
decision in the presence of uncertainty about wage rate and health status
transitions. The model is based on a Markov decision process in which a
hedonic wage approach provides an economic rationale for the different
choices and health insurance serves as an input to the health production
process. Including health transitions in the model helps us to understand
how the availability of EPHI (positive job characteristic) and holding
EPHI (the wage-health insurance trade-off) enter into the individuals'
decisions. The model is estimated using the 1999-2000 Medical Expenditure
Panel Survey panel 4, and the results show that the 'pure' effects of
holding EPHI are negligible, the 'full' effects of EPHI are significant
and the degrees of the inefficiency vary between 14% and 25% across
different states.
Journal: Applied Economics
Pages: 3389-3407
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.929625
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929625
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Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3389-3407
Template-Type: ReDIF-Article 1.0
Author-Name: F. Menla Ali
Author-X-Name-First: F.
Author-X-Name-Last: Menla Ali
Author-Name: O. Dimitraki
Author-X-Name-First: O.
Author-X-Name-Last: Dimitraki
Title: Military spending and economic growth in China: a regime-switching analysis
Abstract:
This article investigates the impact of military spending changes on
economic growth in China over the period 1953 to 2010. Using two-state
Markov-switching specifications, the results suggest that the relationship
between military spending changes and economic growth is state dependent.
Specifically, the results show that military spending changes affect the
economic growth negatively during a slower growth-higher variance state,
while positively within a faster growth-lower variance one. It is also
demonstrated that military spending changes contain information about the
growth transition probabilities. As a policy tool, the results indicate
that increases in military spending can be detrimental to growth during
slower growth-higher growth volatility periods.
Journal: Applied Economics
Pages: 3408-3420
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.929626
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929626
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Template-Type: ReDIF-Article 1.0
Author-Name: Durba Chakrabarty
Author-X-Name-First: Durba
Author-X-Name-Last: Chakrabarty
Author-Name: Levent Kutlu
Author-X-Name-First: Levent
Author-X-Name-Last: Kutlu
Title: Competition and price dispersion in the airline markets
Abstract:
We use two ticket-level data sets on one-way domestic flights for the US
airlines to examine the potentially nonlinear relationship between price
dispersion and three forms of competition: inter-firm, inter-flight and
frequency competitions. The linear relationship is rejected at any
conventional significance levels. In particular, there is an S-shaped
relationship between market concentration and price dispersion. This can
be a reason for the mixed results in the literature. Roughly speaking, the
inter-flight and frequency competitions have opposite effects on price
dispersion. Finally, in general, the size of aircraft has a positive
effect on price. However, for very large aircraft, the relationship
becomes negative.
Journal: Applied Economics
Pages: 3421-3436
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.931919
File-URL: http://hdl.handle.net/10.1080/00036846.2014.931919
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Template-Type: ReDIF-Article 1.0
Author-Name: Rafik Abdesselam
Author-X-Name-First: Rafik
Author-X-Name-Last: Abdesselam
Author-Name: Jean Bonnet
Author-X-Name-First: Jean
Author-X-Name-Last: Bonnet
Author-Name: Patricia Renou-Maissant
Author-X-Name-First: Patricia
Author-X-Name-Last: Renou-Maissant
Title: Typology of the French regional development: revealing the refugee versus Schumpeter effects in new-firm start-ups
Abstract:
In this article, we analyse the relationships between unemployment rates
and new-firm start-up rates in France. Using a quarterly data basis
covering the period 1993 to 2011, we identify, thanks to data analysis
methods, different classes that show different types of development among
the French regions. For each of these classes, the existence of
refugee/Schumpeter effects both in the short run and in
the long run is revealed. At the national level, it appears that the
refugee effect explains the dynamics of entrepreneurship
in France over the period 2000 to 2011. Necessity is the key motivation
for new French firms.
Journal: Applied Economics
Pages: 3437-3451
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.931920
File-URL: http://hdl.handle.net/10.1080/00036846.2014.931920
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Template-Type: ReDIF-Article 1.0
Author-Name: Bruce T. Elmslie
Author-X-Name-First: Bruce T.
Author-X-Name-Last: Elmslie
Author-Name: Edinaldo Tebaldi
Author-X-Name-First: Edinaldo
Author-X-Name-Last: Tebaldi
Title: The determinants of marital happiness
Abstract:
This study contributes to the literature by providing an empirical
analysis of the determinants of marital and general happiness. The
empirical analysis is conducted using US data from the General Social
Survey (GSS) and an Ordered Probit Model. We also attempt to overcome the
endogeneity problem between marital happiness and infidelity using a
recursive bivariate probit model. One of the advances of this study is to
show that the determinants of marital happiness differ between men and
women in interesting ways. While infidelity has similar effects for both
sexes, we find that women have a detectable preference for a traditional
division of labour within the household. In addition, social class,
religion, age, children and income have differential effects between men
and women. In particular, for marital happiness we find diminishing
returns from household income for women and satiation for men. Hence, we
find that most of the existing literature has left hidden important
differences in the determinants of marital happiness between men and
women.
Journal: Applied Economics
Pages: 3452-3462
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.932047
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932047
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Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3452-3462
Template-Type: ReDIF-Article 1.0
Author-Name: Sangwon Suh
Author-X-Name-First: Sangwon
Author-X-Name-Last: Suh
Author-Name: Wonho Song
Author-X-Name-First: Wonho
Author-X-Name-Last: Song
Author-Name: Bong-Soo Lee
Author-X-Name-First: Bong-Soo
Author-X-Name-Last: Lee
Title: A new method for forming asset pricing factors from firm characteristics
Abstract:
Commonly used asset pricing models do not successfully account for both
time-series and cross-sectional variations of asset returns. In this
article, we propose a new method for forming pricing factors that are
intended to capture the time-series as well as the cross-sectional
variations. The new pricing factors are constructed by utilizing a set of
basis assets that are associated with firm characteristics. Compared with
popular extant asset pricing models, empirical results show that the new
model can parsimoniously and successfully account for both time-series and
cross-sectional variations of asset returns and significantly improve
model performances in terms of various measures: the Jensen's α,
root mean squared α, time series regression , cross-sectional
regression and the
HJ-distance measure.
Journal: Applied Economics
Pages: 3463-3482
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.932049
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932049
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Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3463-3482
Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Title: An empirical investigation into the impact of US federal government budget deficits on the real interest rate yield on intermediate-term treasury issues, 1972-2012
Abstract:
This study provides new empirical evidence on the impact of the federal
budget deficit on the real interest rate yields on
intermediate-term debt issues of the US Treasury, represented herein by
the ex post real interest rate yields on 3-year Treasury
notes and 7-year Treasury notes, two interest rate measures that have
received essentially no attention in the economics and finance literature
in recent years. This study is couched within a loanable funds model that
includes two ex post real interest rate yields, the
monetary base as a per cent of GDP, the change in per capita real GDP, net
financial capital inflows as a per cent of GDP and the budget deficit as a
per cent of GDP. This study uses annual data for the study period 1972 to
2012, a time period that includes 'quantitative easing' monetary policies
by the Federal Reserve. Two-stage least squares estimations reveal that
the federal budget deficit, expressed as a per cent of GDP, exercised a
positive and statistically significant impact on the ex
post real interest rate yields on both 3-year and 7-year Treasury
notes, even after allowing for quantitative easing and other factors. The
study also considers the time period 1980 to 2012 and offers simple
robustness testing.
Journal: Applied Economics
Pages: 3483-3493
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.932050
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932050
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Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3483-3493
Template-Type: ReDIF-Article 1.0
Author-Name: Ting Zhang
Author-X-Name-First: Ting
Author-X-Name-Last: Zhang
Author-Name: Dan Gerlowski
Author-X-Name-First: Dan
Author-X-Name-Last: Gerlowski
Author-Name: Deborah Ford
Author-X-Name-First: Deborah
Author-X-Name-Last: Ford
Title: Housing price variability: national and local impacts
Abstract:
This article examines the influence of national and local forces on
housing prices in 20 local US real estate markets during the recent
housing price run-up and decline. We use reduced-form panel data
fixed-effects models with robust SEs to determine the impact of national
and local effects on housing prices in 20 US cities across time. A
national home price index and mortgage rate are used to measure national
impacts on the local markets. A mix of socio-economic variables estimates
local impacts. We find no results indicating that national trends lack
relevance in local markets; however, we find wide support for the
additional inclusion of local socio-economic factors in all markets. The
findings are consistent with an environment in which national polices and
trends influence all markets; however local policymakers and investors can
continue to expect geographic differences in market outcomes.
Journal: Applied Economics
Pages: 3494-3502
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.929628
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929628
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Handle: RePEc:taf:applec:v:46:y:2014:i:28:p:3494-3502
Template-Type: ReDIF-Article 1.0
Author-Name: Kamila Cygan-Rehm
Author-X-Name-First: Kamila
Author-X-Name-Last: Cygan-Rehm
Author-Name: Regina T. Riphahn
Author-X-Name-First: Regina T.
Author-X-Name-Last: Riphahn
Title: Teenage pregnancies and births in Germany: patterns and developments
Abstract:
We study the development of teenage fertility in East and West Germany
using data from the German Socioeconomic Panel and from the German
Mikrozensus. Following the international literature we derive hypotheses
on the patterns of teenage fertility and test whether they are relevant to
the German case. We find that teenage fertility is associated with teenage
age and education, with the income of the teenager's family, with
migration status, residence in East Germany and aggregate unemployment.
Our evidence supports counter-cyclical teenage fertility.
Journal: Applied Economics
Pages: 3503-3522
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.932045
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932045
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Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Ono
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Ono
Title: The government expenditure-economic growth relation in Japan: an analysis by using the ADL test for threshold cointegration
Abstract:
Based on annual data from Japan for the period 1960 to 2010, we
investigate the government expenditure-economic growth relation in Japan
by using the autoregressive distributed lag test for threshold
cointegration developed by Li and Lee (2010). In particular, we evaluate
the validity of Wagner's view and the Keynesian view in the case of Japan.
The empirical results presented herein indicate that of these two
classical economics perspectives, only Wagner's view holds for Japan. The
findings also demonstrate that the adjustment process towards its long-run
equilibrium is asymmetric.
Journal: Applied Economics
Pages: 3523-3531
Issue: 28
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.932046
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932046
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Template-Type: ReDIF-Article 1.0
Author-Name: J. D. Pitts
Author-X-Name-First: J. D.
Author-X-Name-Last: Pitts
Author-Name: S. Orozco-Aleman
Author-X-Name-First: S.
Author-X-Name-Last: Orozco-Aleman
Author-Name: J. Rezek
Author-X-Name-First: J.
Author-X-Name-Last: Rezek
Title: The role of supervisors in the determination of wages and wage gaps
Abstract:
This article considers labour market discrimination by supervisors as a
potential contributor to racial and gender wage gaps. Empirical analysis
reveals evidence that all workers, except Hispanic males, earn
significantly higher hourly wages when working for a supervisor of the
same race and sex as themselves. Furthermore, the results suggest that sex
has a larger impact on wages than race for workers with white supervisors,
while race has a larger impact on wages than sex for workers with minority
supervisors. Based on past research, we theorize that the degree of labour
discrimination workers face may also be dependent upon the location and
size of the firm in which they are employed. However, decomposing the
samples by firm location and size suggests that these two factors cannot
adequately explain the observed matched supervisor--worker wage effects,
which supports the notion that these wage effects are largely driven by
factors other than supervisor discrimination.
Journal: Applied Economics
Pages: 3533-3547
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.934430
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934430
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Template-Type: ReDIF-Article 1.0
Author-Name: William Gatt
Author-X-Name-First: William
Author-X-Name-Last: Gatt
Author-Name: Joseph Falzon
Author-X-Name-First: Joseph
Author-X-Name-Last: Falzon
Title: British tourism demand elasticities in Mediterranean countries
Abstract:
We use the almost ideal demand system (AIDS) model developed by Deaton and
Muellbauer (1980) to estimate tourism demand elasticities for a number of
Mediterranean countries (Cyprus, Greece, Italy, Malta, Portugal, Spain and
Turkey) in relation to tourists originating from the United Kingdom during
the period 1963 to 2009. Using the restrictions imposed by theory, we find
that the model is able to explain developments in market shares reasonably
well, despite the large and at times sudden changes in market shares over
the sample period. Our share estimates indicate that while Spain and
Portugal managed to keep a stable market share over time, Malta and
especially Italy lost market share to Cyprus, Greece and Turkey. Overall,
we observe that Italy and Spain have the lowest own-price elasticities,
whereas Greece, Portugal, Spain and Turkey are expenditure inelastic
holiday destinations. We also improve over the traditional treatment of
the AIDS model in the literature by studying the stability of the
estimated elasticities over time using recursive estimates. The results
indicate that some elasticities are indeed time varying and highlight the
potential pitfalls of assuming fixed and stable elasticities over a long
period, as is customary in the tourism literature.
Journal: Applied Economics
Pages: 3548-3561
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.934432
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934432
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Template-Type: ReDIF-Article 1.0
Author-Name: C. Alexandrakis
Author-X-Name-First: C.
Author-X-Name-Last: Alexandrakis
Title: Sectoral differences in the use of information technology and matching efficiency in the US labour market
Abstract:
The present study examines how the heterogeneity of use of information
technology in production affects the probability that an unemployed worker
will be matched with a vacancy. Using US time series from 1967 to 2007, I
construct measures of dispersion of the stocks of software and hardware
per worker across 13 industries. The measures exhibit three waves whose
timing roughly corresponds to the diffusion of mainframe computers in the
1960s and 1970s, personal computers in the 1980s and the Internet in the
late 1990s. After controlling for other influences, I find that the
probability of transitioning from unemployment to employment responds
negatively to an increase in either measure. The results imply that by
enhancing technical heterogeneity, the diffusion of a new technology may
suppress the job finding rate.
Journal: Applied Economics
Pages: 3562-3571
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.934433
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934433
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Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3562-3571
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Pino
Author-X-Name-First: Gabriel
Author-X-Name-Last: Pino
Author-Name: Ariel Soto
Author-X-Name-First: Ariel
Author-X-Name-Last: Soto
Title: Analysis of wage flexibility across the Euro Area: evidence from the process of convergence of the labour income share ratio
Abstract:
This article analyses wage flexibility as a factor in the unemployment
rate across 12 Euro Area countries. We use extensive evidence pertaining
to the countercyclical behaviour of the labour income share ratio to
estimate its equilibrium value in the long run. This measure is calculated
using a hybrid New Keynesian Phillips curve. Additionally, by using
spatial econometrics, we can incorporate into the study the
interdependence in the inflation among the countries. As a result, we
identify countries that might see an improvement in their employment rates
by improving their wage flexibility. We also identify countries with high
unemployment that is not a consequence of a lack of wage flexibility.
Journal: Applied Economics
Pages: 3572-3580
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.934434
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934434
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Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Title: Testing Okun’s law with Swiss industry data
Abstract:
Okun’s law postulates a stable relationship between quarterly
output growth and changes in (un)employment. This proposition has so far
been tested with macroeconomic data at the highest level of aggregation.
The article goes beyond that in extending the analysis to industry data
from Switzerland, applying a method suggested by the International
Monetary Fund. Another focus is on whether expansions in production have
become more ‘jobless’ over the most recent business cycle
compared to earlier ones. This does not seem to be the case in
Switzerland, except in the construction industry.
Journal: Applied Economics
Pages: 3581-3590
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.934435
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934435
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Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3581-3590
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Peter Wanke
Author-X-Name-First: Peter
Author-X-Name-Last: Wanke
Title: Insurance companies in Mozambique: a two-stage DEA and neural networks on efficiency and capacity slacks
Abstract:
This article analyses the efficiency of Mozambique insurance companies
using a DEA model. Two DEA models are used and a bootstrap approach
adopted. Furthermore, the efficiency scores are predicted based on neural
networks. The results reveal that Mozambique insurance companies’
output-increasing potentials are severely constrained, particularly in
terms of the ceded reinsurance increasing potentials. Policy implications
are derived.
Journal: Applied Economics
Pages: 3591-3600
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.934436
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934436
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Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3591-3600
Template-Type: ReDIF-Article 1.0
Author-Name: Atsuyuki Kato
Author-X-Name-First: Atsuyuki
Author-X-Name-Last: Kato
Author-Name: Naomi Kodama
Author-X-Name-First: Naomi
Author-X-Name-Last: Kodama
Title: Markups, productivity and external market development of the service SMEs
Abstract:
During the last decade, economists and policy makers have extensively
discussed what types of firms can exploit external markets by exporting
and what happens to domestic firms if external competitors penetrate into
the home market. Although both theoretical and empirical studies have been
dedicated to these issues, few have been carried out for the service
sector. Since the service sector accounts for the lion’s share of
GDP, the lack of those studies indicates that a large part of the actual
economy still remains veiled. Our study fills this gap. We examine whether
or not the Melitz and Ottaviano (2008) model remains satisfied in the
service sector, using data from Japanese SMEs. From our analysis, we
confirm that larger market sizes are associated with higher productivity
levels. On the other hand, firms with higher markups tend to develop their
business in smaller markets, conditional of the simultaneity between
production and consumption. These results reveal that further productivity
growth in the service sector also requires markets to be larger and more
integrated. In addition, the markup levels become lower in those markets.
Journal: Applied Economics
Pages: 3601-3608
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.937033
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937033
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Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3601-3608
Template-Type: ReDIF-Article 1.0
Author-Name: Naiwei Chen
Author-X-Name-First: Naiwei
Author-X-Name-Last: Chen
Author-Name: E-N Hsiao
Author-X-Name-First: E-N
Author-X-Name-Last: Hsiao
Title: Insider ownership and financial flexibility
Abstract:
This study examines the cash flow sensitivity of external financing
(financial flexibility (FF)) of firms from the perspective of the agency
by focusing on whether and how insider ownership has a modifying effect on
the FF of firms. Given the documented relationship between corporate
governance and cost of external financing, insider ownership, an important
proxy of corporate governance, should affect FF via the
agency cost channel. A review of the US nonfinancial firms from 1992 to
2009 indicates that insider ownership aids in determining the FF of firms.
More specifically, results indicate the existence of optimal insider
ownership, and any deviation from it causes FF to decrease. In addition,
FF is higher when CEO ownership is lower (>0.08%) and this phenomenon is
more pronounced for financially unconstrained firms. Furthermore, FF is
higher when non-CEO insider ownership is in the middle range (0.12--0.43%)
for financially constrained firms, whereas non-CEO insider ownership has
minimal impact on FF for unconstrained firms.
Journal: Applied Economics
Pages: 3609-3629
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.937035
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937035
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Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3609-3629
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale
Author-X-Name-First: Tony
Author-X-Name-Last: Caporale
Author-Name: Marc Poitras
Author-X-Name-First: Marc
Author-X-Name-Last: Poitras
Title: Voter turnout in US presidential elections: does Carville’s law explain the time series?
Abstract:
We estimate a time series model of voter turnout for 34 US presidential
elections, 1880--2012. Employing a variety of econometric techniques, our
major results are as follows. (1) A negative and significant structural
shift in voter turnout occurs in 1972 and is too large to be explained by
the lowering of the voting age. (2) The 1972 shift is the only
statistically significant structural shift to occur since the first decade
of the twentieth century. (3) Short-term macroeconomic conditions
significantly impact turnout, with unemployment having a positive effect.
(4) Turnout in recent presidential elections has not deviated
significantly from the post-1972 norm. (5) Turnout is positively related
to the expected closeness of the election outcome, but contrary to some
theoretical predictions, closeness exhibits no trend over time.
Journal: Applied Economics
Pages: 3630-3638
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.937037
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937037
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Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3630-3638
Template-Type: ReDIF-Article 1.0
Author-Name: Jiao Zhang
Author-X-Name-First: Jiao
Author-X-Name-Last: Zhang
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Author-Name: Xiaofeng Zhao
Author-X-Name-First: Xiaofeng
Author-X-Name-Last: Zhao
Title: Forecasting spot freight rates based on forward freight agreement and time charter contract
Abstract:
In this article, the lead--lag relationship in freight rates between spot
and forward markets and between spot and time charter (TC) markets was
investigated. A hybrid forecasting method for spot freight rates was
proposed based on the price discovery functions of the freight forward
agreement (FFA) and the TC contract. VECM-based models were developed to
analyse the relation between spot rates and FFA and TC rates. Empirical
results indicate that cointegration does exist between spot and FFA rates
and between spot and TC rates. Furthermore, while both FFA and TC rates
are helpful in forecasting spot freight rates, the integration of the two
can further improve the forecasting performance of spot freight rates.
Journal: Applied Economics
Pages: 3639-3648
Issue: 29
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.937038
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937038
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Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3639-3648
Template-Type: ReDIF-Article 1.0
Author-Name: Marina-Selini Katsaiti
Author-X-Name-First: Marina-Selini
Author-X-Name-Last: Katsaiti
Author-Name: Amany A. El Anshasy
Author-X-Name-First: Amany A.
Author-X-Name-Last: El Anshasy
Title: On the determinants of obesity: evidence from the UAE
Abstract:
This article investigates the possible determinants of being overweight
and obese in the United Arab Emirates (UAE), controlling for age and
education status. We use a novel dataset constructed from survey responses
of university undergraduate students. Using OLS, logistic and ordered
logistic regressions, we find that male, affluent and nonnational students
face a higher risk of being obese (or overweight). The results also show
that cultural and geographical factors interact with some behavioural
aspects related to lifestyle in determining weight status. Students
originating from other Middle East and North Africa countries exhibit
higher body mass index (BMI) and odds of being obese with higher frequency
of eating out and more computer use. Unexpectedly, fast food consumption
and lack of exercise do not seem to contribute to higher risks of being
overweight/obese.
Journal: Applied Economics
Pages: 3649-3658
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.934431
File-URL: http://hdl.handle.net/10.1080/00036846.2014.934431
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3649-3658
Template-Type: ReDIF-Article 1.0
Author-Name: Ainura Tursunalieva
Author-X-Name-First: Ainura
Author-X-Name-Last: Tursunalieva
Author-Name: Param Silvapulle
Author-X-Name-First: Param
Author-X-Name-Last: Silvapulle
Title: A semi-parametric approach to estimating the operational risk and Expected Shortfall
Abstract:
In this article, we propose improvements to the peak-over-threshold (POT)
method and apply this improved method for modelling US business
operational losses and estimating operational risks (ORs). In the widely
used traditional POT method, the generalized Pareto distribution (GPD) is
fitted to severity losses, while an empirical distribution is fitted to
small to medium losses. Then, the Expected Loss and the 99.9% operational
value-at-risk (OpVaR) are estimated. Additionally, the Expected Shortfall
(ES) - a coherent risk measure - is estimated in this article as an
alternative to OpVaR. These risk measures constitute the levels of
regulatory and economic capitals to cover risks. With the improved POT
method, the risks can be estimated more accurately than with the
traditional POT method. The results indicate that the OpVaR are much lower
than the ES and that the larger the tail losses the greater the difference
between these two risk measures. Our findings imply that the ES would
provide higher levels of capitals to cover risks than would the OpVaR,
particularly during crises, and they have implications for the efficient
OR management and regulators.
Journal: Applied Economics
Pages: 3659-3672
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.937034
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937034
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3659-3672
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Author-Name: Sharmistha Self
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Self
Title: Some preliminary evidence of the impact of the 2008-2009 financial crisis on women
Abstract:
Beginning in late 2007 and into 2008, a financial crisis originating in
the United States spread throughout the world. This article seeks to
present preliminary evidence of the impact of this crisis on female labour
force participation and the proportion of females working in
nonagricultural sectors. A panel data set involving 171 countries is
utilized, and the results indicate that the financial crisis led to
increases in female labour force participation as well as the proportion
of females working in the nonagricultural sector. There are differences in
impact for countries of various income levels (low, middle and high). In
addition, female political power has also led to increases in the economic
participation of females.
Journal: Applied Economics
Pages: 3673-3681
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.937039
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937039
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3673-3681
Template-Type: ReDIF-Article 1.0
Author-Name: N. Antonakakis
Author-X-Name-First: N.
Author-X-Name-Last: Antonakakis
Author-Name: H. Badinger
Author-X-Name-First: H.
Author-X-Name-Last: Badinger
Title: International business cycle spillovers since the 1870s
Abstract:
This article considers the evolution of international business cycle
interdependencies among 27 developed and developing countries since the
beginning of 1870s, utilizing the generalized vector autoregressive
(VAR)-based spillover index of Diebold and Yilmaz (2012), which allows the
construction of a time-varying measure of business cycle spillovers. We
find that, on average, 65% of the forecast error variance of the 27
countries' business cycle shocks is due to international spillovers.
However, the magnitude of international business cycle spillovers varies
considerably over time. There is a clear increasing trend since the end of
World War II and until the mid-1980s. After that, international business
cycle interdependencies declined during the period that was dubbed the
Great Moderation and stabilized around the beginning of the twenty-first
century. During the Great Recession of 2008-2009, international business
cycle spillovers increased to unprecedented levels. Finally, developed
countries are consistently ranked as net transmitters of cyclical shocks
to developing counties throughout the sample.
Journal: Applied Economics
Pages: 3682-3694
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.937040
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937040
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3682-3694
Template-Type: ReDIF-Article 1.0
Author-Name: Zhenxu Tong
Author-X-Name-First: Zhenxu
Author-X-Name-Last: Tong
Title: Deviations from optimal corporate cash holdings and the valuation from a shareholder's perspective
Abstract:
The trade-off theory of corporate cash holdings predicts that there is an
optimal level of cash. We test the trade-off theory by investigating the
relation between deviations from optimal cash holdings and the valuation
of cash from a shareholder's perspective. We decompose corporate cash
holdings into the optimal level of cash and the deviations from the
optimum. We find that the marginal value of cash for shareholders is
higher when a change in cash moves corporate cash holdings towards the
optimal level and that this relationship holds for both the above-optimal
deviations and the below-optimal deviations. We conclude that the results
are consistent with the prediction of the trade-off theory of corporate
cash holdings.
Journal: Applied Economics
Pages: 3695-3707
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.939374
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939374
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3695-3707
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Omer
Author-X-Name-First: Muhammad
Author-X-Name-Last: Omer
Author-Name: Jakob de Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: de Haan
Author-Name: Bert Scholtens
Author-X-Name-First: Bert
Author-X-Name-Last: Scholtens
Title: Testing uncovered interest rate parity using LIBOR
Abstract:
We test uncovered interest rate parity (UIP) using London InterBank
Offered Rate (LIBOR) interest rates for a wide range of maturities. In
contrast to other markets, LIBOR markets have minimal frictions. Whereas
most previous studies reject UIP, we find that UIP holds for several
short-term LIBOR maturities using block bootstrap panel unit root tests
suggested by Palm et al. (2011) and cointegration
techniques by Westerlund (2007). Furthermore, the estimation results
suggest that the speed of adjustment to the long-run equilibrium
marginally differs across the maturity of the underlying instrument, thus
supporting the efficient market hypothesis.
Journal: Applied Economics
Pages: 3708-3723
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.939375
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939375
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3708-3723
Template-Type: ReDIF-Article 1.0
Author-Name: Pilar Poncela
Author-X-Name-First: Pilar
Author-X-Name-Last: Poncela
Author-Name: Eva Senra
Author-X-Name-First: Eva
Author-X-Name-Last: Senra
Author-Name: Lya Paola Sierra
Author-X-Name-First: Lya Paola
Author-X-Name-Last: Sierra
Title: Common dynamics of nonenergy commodity prices and their relation to uncertainty
Abstract:
The purpose of this article is to improve the empirical evidence on
commodity prices in various dimensions. First, we attempt to identify the
extent of comovements in 44 monthly nonenergy commodity price series in
order to ascertain whether the increase in comovement is a recent term
phenomenon. Second, we attempt to determine the role of uncertainty in
determining comovements among nonenergy prices in the short run. We
diagnose the overall comovement using a dynamic factor model estimated by
principal components. A factor-augmented vector autoregressive approach is
used to assess the relationship of fundamentals, financial and uncertainty
variables with the comovement in commodity prices. We find a greater
synchronization among raw materials since December 2003. Since that date,
uncertainty has played an important role in determining short-run
fluctuations in nonenergy raw material prices.
Journal: Applied Economics
Pages: 3724-3735
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.939377
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939377
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3724-3735
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Antonio Lucena Aiube
Author-X-Name-First: Fernando Antonio Lucena
Author-X-Name-Last: Aiube
Author-Name: Carlos Patricio Samanez
Author-X-Name-First: Carlos Patricio
Author-X-Name-Last: Samanez
Title: On the comparison of Schwartz and Smith's two- and three-factor models on commodity prices
Abstract:
Since Schwartz and Smith (2000) published their study on two-factor model
on commodity prices, many studies have used this model and others have
extended it. The authors also proposed the three-factor model due to the
poor fitting of the two-factor one on long-term futures prices. At that
time the authors had only long-term prices from a private source to
calibrate, test and compare these models. No public data on long-term
future contracts were available. On the other hand, during the last decade
the commodity prices soared as did the liquidity of long-term contracts.
This means that the interest of the agents in the management of their risk
on long-term positions increased the same way and this is the motivation
for this study. In this article, we revisit the comparison between two-
and three-factor models using public data for short- and long-term
contracts (we use up to the 67-month-ahead contract). We also provide a
detailed derivation of the three-factor model differently from that of the
original article. Following the original article of Schwartz and Smith, we
used oil futures prices traded on the New York Mercantile Exchange to
calibrate the model. The results show a better fit of the three-factor
model for the term structure of prices and volatilities mainly for long
maturities contracts, while the two-factor model in most portions of the
curve underestimates the risk premiums. This type of analysis is important
not only for daily agents negotiating the physical commodities through
long-term contracts but also for investment decisions on development of
real projects.
Journal: Applied Economics
Pages: 3736-3749
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.939409
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939409
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3736-3749
Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Cullmann
Author-X-Name-First: Astrid
Author-X-Name-Last: Cullmann
Author-Name: Petra Zloczysti
Author-X-Name-First: Petra
Author-X-Name-Last: Zloczysti
Title: R&D efficiency and heterogeneity - a latent class application for the OECD
Abstract:
Expenditures devoted to research and development (R&D) are scarce and thus
need to be used as efficiently as possible given the financial constraints
countries are facing. This article assesses the relative efficiency of R&D
expenditures for 26 OECD member countries and two nonmember countries. As
countries differ in their national innovation systems and states of
economic development and industrialization, e.g. transition economies in
Eastern Europe versus Asian countries versus Anglo-Saxon countries, the
measurement of R&D efficiency needs to consider differences in the
technology of knowledge production. By means of a latent class model for
stochastic frontiers, we relax the assumption of a homogeneous technology
frontier and model technological differences in knowledge production among
countries. Empirical evidence suggests the existence of different classes
stressing the importance of accounting for countries' disparities within
R&D efficiency analysis.
Journal: Applied Economics
Pages: 3750-3762
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.939410
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939410
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3750-3762
Template-Type: ReDIF-Article 1.0
Author-Name: Itthipong Mahathanaseth
Author-X-Name-First: Itthipong
Author-X-Name-Last: Mahathanaseth
Author-Name: Loren W. Tauer
Author-X-Name-First: Loren W.
Author-X-Name-Last: Tauer
Title: Performance of Thailand banks after the 1997 East Asian financial crisis
Abstract:
The performance of commercial banks and government-owned specialized banks
in Thailand is estimated after the 1997 East Asian financial crisis.
Commercial banks exhibit increasing returns to scale, whereas
government-owned specialized banks exhibit decreasing returns to scale,
implying further increases in bank size and market concentration in the
commercial bank sector but not for government specialized banks. Cost
inefficiency varies by bank and is a function of the ratio of
nonperforming loans (NPLs) to total loans, equity to total assets and
liquid assets to total assets, as well as the number of branches. On
average, banks with fewer NPLs, that are well capitalized and with
adequate liquidity are efficient. Thus, stricter rules to regulate credit
risk management and ensure capital and liquidity adequacy would enhance
efficiency in the banking sector. Although estimated input
substitutability appears to be low, labour and loanable fund are
substitutes. However, labour and physical capital as well as physical and
loanable funds are complements in commercial banks. All the three inputs
of labour, physical capital and loanable funds are substitutes for the
government specialized banks.
Journal: Applied Economics
Pages: 3763-3776
Issue: 30
Volume: 46
Year: 2014
Month: 10
X-DOI: 10.1080/00036846.2014.937036
File-URL: http://hdl.handle.net/10.1080/00036846.2014.937036
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Handle: RePEc:taf:applec:v:46:y:2014:i:30:p:3763-3776
Template-Type: ReDIF-Article 1.0
Author-Name: Berna Kirkulak Uludag
Author-X-Name-First: Berna
Author-X-Name-Last: Kirkulak Uludag
Author-Name: Zorikto Lkhamazhapov
Author-X-Name-First: Zorikto
Author-X-Name-Last: Lkhamazhapov
Title: Long memory and structural breaks in the returns and volatility of gold: evidence from Turkey
Abstract:
This article examines the long-memory
properties and structural breaks in spot and futures gold returns and
volatility in Turkey. The data cover the period from 2008 through 2013 in
which gold prices hit an all-time high. ARFIMA-FIGARCH model provides
evidence of dual long memory in spot series and a lack of long-memory
property in futures returns. Anti-persistence in spot returns is
indicative of an overreaction of gold prices to new information, thus
disconfirming the weak form of market efficiency. The findings further
provide evidence of one structural break, which is associated with
correction in the gold prices during the post-global financial crisis. The
analyses suggest that the long memory is true, not spurious. This implies
that long memory is a feature of the data instead of an outcome of
structural changes.
Journal: Applied Economics
Pages: 3777-3787
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.929627
File-URL: http://hdl.handle.net/10.1080/00036846.2014.929627
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3777-3787
Template-Type: ReDIF-Article 1.0
Author-Name: David J. Mayston
Author-X-Name-First: David J.
Author-X-Name-Last: Mayston
Title: Effectiveness analysis of quality achievements for university Departments of Economics
Abstract:
When university Departments are under
pressure to improve the assessed quality of their research and teaching in
several different directions simultaneously, questions arise as to the
nature of the corresponding feasible set and the shape of its frontier.
When quality is judged by reference to grades whose precise thresholds are
subject to stochastic uncertainties, both convex and nonconvex regions of
the frontier of the feasible set may be present. The appropriateness of
deploying standard empirical techniques of frontier estimation is then
called into question in evaluating the relative effectiveness of
individual Departments and their scope for improvements. The empirical
results of frontier estimation, here applied to UK university Departments
of Economics, are shown to be sensitive to the choice of nonparametric
frontier technique deployed, with Free Disposal Hull analysis providing an
alternative estimation technique that can allow for both convex and
nonconvex regions of the possibility frontier. Issues of the endogeneity
of the resources available to Departments are also raised in this applied
context, with a need to incorporate into the effectiveness analysis the
potential feedback effects of improved research and teaching quality upon
the achievement possibility set.
Journal: Applied Economics
Pages: 3788-3797
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.939373
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939373
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3788-3797
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Serrano-Cinca
Author-X-Name-First: Carlos
Author-X-Name-Last: Serrano-Cinca
Author-Name: Yolanda Fuertes-Call鮠
Author-X-Name-First: Yolanda
Author-X-Name-Last: Fuertes-Call鮠
Author-Name: Begouti鲲ez-Nieto
Author-X-Name-First: Bego
Author-X-Name-Last: Guti鲲ez-Nieto
Author-Name: Beatriz Cuellar-Fernᮤez
Author-X-Name-First: Beatriz
Author-X-Name-Last: Cuellar-Fernᮤez
Title: Path modelling to bankruptcy: causes and symptoms of the banking crisis
Abstract:
This article studies the bankruptcy of US
banks since 2009. It first analyses the financial symptoms that precede
bankruptcy, such as low profitability, insufficient revenue or low
solvency ratios. It also goes into the causes of these symptoms. It poses
several hypotheses on causes of failure, such as loan growth (some of them
risky), specialization (in this case concentration in real estate) and the
pursuit of a turnover-driven strategy neglecting margin. It presents and
tests a structural equation modelling based on partial least squares path
modelling (PLS-PM) and logistic regression. Results show that, 5 years
before the crisis, failed banks had, compared to solvent banks, the
following: higher loan growth, higher concentration on real estate loans,
higher risk ratios, higher turnover, but lower margins. A relationship is
found between symptoms and causes. Failed banks present a significant
relationship between the percentage of real estate loans and risk. This
relationship is negative in excellent banks, confirming that they
allocated less real estate loans with a high quality. Nonfailed banks
compensated increases in risk by strengthening their core capital.
Journal: Applied Economics
Pages: 3798-3811
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.943882
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943882
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3798-3811
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chih Lin
Author-X-Name-First: Chien-Chih
Author-X-Name-Last: Lin
Title: Option smiling when investors' estimates of asset volatility disagree
Abstract:
This study sheds light on why
heterogeneous beliefs in volatility manifest the smile effect of options
and how the degree of belief disagreement influences option-implied
volatility. It is found that when investors' level of heterogeneous
beliefs increases, agents who over estimate volatility raise their
subjective probability about those outer dividend states and hence
increase more consumption to those states. As a result, an increase of
consumption causes a decrease of their marginal rate of transformation in
outer states. The raising subjective probability increases the prices of
outer states, while the lower marginal rate of transformation decreases
the prices of that. However, the influence of the former dominates the
latter, causing a fatter tail of the state-price density. As a
consequence, the values increase for those call options with high strike
prices and put options with low strike prices, leading to a U-shaped
implied volatility and hence causes a smell effect.
Journal: Applied Economics
Pages: 3812-3827
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.943883
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943883
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3812-3827
Template-Type: ReDIF-Article 1.0
Author-Name: Cheuk Yin Ho
Author-X-Name-First: Cheuk Yin
Author-X-Name-Last: Ho
Title: Can the baseline search and matching model quantitatively explain Okun's law?
Abstract:
Okun's Law is an empirically observed,
negative relationship between changes in an economy's unemployment rate
and its growth rate of output. The baseline search and matching model with
stochastic labour productivity fails to match the Okun's coefficient,
because it generates a too low unemployment volatility and a too high
correlation between labour productivity and unemployment. The model is
capable of matching the coefficient if it is extended with an addition of
employment separation shocks plus a high calibrated value of nonmarket
activities. This article also shows that changes in the stochastic
properties of exogenous shocks could explain changes in the Okun's
coefficient in the Great Moderation (1984-2007).
Journal: Applied Economics
Pages: 3828-3835
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.943884
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943884
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3828-3835
Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: J. R. Clark
Author-X-Name-First: J. R.
Author-X-Name-Last: Clark
Title: The effects of economic freedom, regulatory quality and taxation on the level of per capita real income: a preliminary analysis for OECD nations and non-G8 OECD nations
Abstract:
This study of the impact of economic
freedom, regulatory quality and the relative burden of taxation on the
level of per capita real income/GDP among OECD nations
over the period 2003 to 2007 adopts a modified version of the
overall economic freedom index computed by the Heritage
Foundation (2013), one with the fiscal freedom and business freedom
indices removed. This study then provides panel least squares
fixed-effects estimates for five linear specifications/models. Each nation
during this time frame can be regarded either as a nation per
se or as a de facto 'economic region' within the
OECD. The analysis first focuses upon all of the OECD nations and then, as
a robustness test, subsequently focuses only on non-G8 OECD member
nations. The estimations in this study all provide strong empirical
support for the three central hypotheses proffered here, namely: (1) the
higher the overall degree of economic freedom, the higher the per capita
real income (GDP) level; (2) the higher the level of
regulatory quality, the higher the level of per capita
real income (GDP) and (3) the higher the overall tax burden, expressed as
a per cent of GDP, the lower is the level of per capita
real income (GDP).
Journal: Applied Economics
Pages: 3836-3848
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.943885
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943885
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3836-3848
Template-Type: ReDIF-Article 1.0
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Title: Dependence structure between nominal and index-linked bond returns: a bivariate copula and DCC-GARCH approach
Abstract:
This article investigates the dependence
structure related to four French nominal and index-linked bonds with
various maturities and reference indices. To achieve this aim, we estimate
various copulas to select the appropriate one for our data. We also
compare results obtained using the copula method with multivariate dynamic
conditional correlation GARCH (DCC-GARCH) modelling. The major issue in
this study is that the best copulas used to model the dependence among
bond returns are the Plackett and Student models. We also find a dynamic
correlation between bond returns. In particular, the relationship between
nominal and indexed bonds is characterized by an asymmetric dependence.
Moreover, the results obtained by the copula approach are confirmed by
those obtained by multivariate GARCH modelling. Our empirical study
provides a useful method that may be employed by decision-makers to
quantitatively introduce dependence and spillover effects in their bond
issuance policy. For investors, we propose optimal investment combinations
in bonds with respect to their investment horizons.
Journal: Applied Economics
Pages: 3849-3860
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.943886
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943886
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3849-3860
Template-Type: ReDIF-Article 1.0
Author-Name: George Milunovich
Author-X-Name-First: George
Author-X-Name-Last: Milunovich
Author-Name: Jelena Minović
Author-X-Name-First: Jelena
Author-X-Name-Last: Minović
Title: Local and global illiquidity effects in the Balkans frontier markets
Abstract:
We study market illiquidity across 11
national markets of the Balkans. In general, the EU member countries are
more liquid than the nonmember countries. Turkey, however, has the most
liquid market, while Serbia and Bosnia are the least liquid. Global
illiquidity sourced from the US has a strong and positive impact on
pricing in eight of the Balkans markets. In contrast, illiquidity
transmitted from the EU impacts expected returns in only two instances,
while local illiquidity is significant for just one market. Croatia and
Slovenia are most susceptible to transmissions of regional illiquidity,
each receiving illiquidity spillovers from four sources.
Journal: Applied Economics
Pages: 3861-3873
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.943888
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943888
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3861-3873
Template-Type: ReDIF-Article 1.0
Author-Name: O. Israeli
Author-X-Name-First: O.
Author-X-Name-Last: Israeli
Author-Name: M. Weber
Author-X-Name-First: M.
Author-X-Name-Last: Weber
Title: Defining chronic poverty: comparing different approaches
Abstract:
In this study, we discuss two methods
commonly used in the literature to measure chronic poverty, the permanent
income approach (where the chronically poor are those whose mean income
over time is below the poverty line) and the spells approach (where the
chronically poor are those households who are below the poverty line half
of the time or more). We check the differences between these two methods
considering also several household characteristics. The index we use is
that of Foster, Greer and Thorbecke, FGT, with
and
. When
each method identifies the chronically poor (which
could be different individuals by each method) and shows the percentage of
the chronically poor, while when
the methods also take into account the depth of
poverty. Our main goal is to show the differences between the two methods,
so that policymakers would have different perspectives on the problem of
chronic poverty and could make decisions on this basis. The results show
that, in the data used, the permanent method and the spells method
classify the households into chronically poor and nonchronically poor
definitions almost similarly in some cases. Thus, when measuring chronic
poverty using the FGT index with
, the levels of chronic poverty measured by the two
methods are quite the same for the whole population as well as for
subgroups of the population. Nevertheless, when using the FGT index with
, the permanent method and the spells method give
different results, as they take into account the depth of poverty
differently.
Journal: Applied Economics
Pages: 3874-3881
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.946182
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946182
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3874-3881
Template-Type: ReDIF-Article 1.0
Author-Name: T. Potts
Author-X-Name-First: T.
Author-X-Name-Last: Potts
Title: Governance, corruption and Olympic success
Abstract:
This article is the first to utilize a set
of World Governance Indicators published by the World Bank to examine what
role, if any, various characteristics of governance played in promoting
success in the 2012 Summer Olympics. Although no strong statistical linear
relationship is found between any of the governance indicators and Olympic
success, it is shown that nations belonging to roughly the top quintile in
control of corruption had a lower probability of medalling and received
lower medal shares, ceteris paribus. A possible
explanation for this reduced success is revealed in that scoring in the
top quintile of control of corruption is also associated with fewer
anti-doping violations, which may indicate lower rates of
performance-enhancing drug use.
Journal: Applied Economics
Pages: 3882-3891
Issue: 31
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.948672
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948672
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Handle: RePEc:taf:applec:v:46:y:2014:i:31:p:3882-3891
Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: Cost relationships and challenges in the Spanish apparel industry
Abstract:
In the twenty-first century, the Spanish
textile and apparel industries have faced substantial challenges,
resulting in declining sales and employment. This study concentrates on
the apparel industry, since its economic challenges and opportunities
differ from those of the textile industry. The analysis employs a
transcendental logarithmic cost function to investigate the presence of
scale economies and the interrelationships among inputs of domestic
capital, labour and intermediate goods as well as outsourced intermediate
products for the Spanish apparel industry and discusses the implications
for its future competitiveness and the demand for domestic inputs. The
results are consistent with diseconomies of scale or, in the case of one
model, possibly constant returns to scale, indicating that some
contraction of the industry due to international competition will not
raise unit costs. All of the inputs except for capital and intermediate
goods were found to be substitutes. An important finding is that the cross
elasticity values of both labour and domestic intermediate goods with
respect to the price of outsourced goods have risen over time, indicating
an increased sensitivity of the quantity demanded of these home-country
inputs to the price of imported intermediate goods. It follows that
domestic input markets will be more substantially affected by
international prices for outsourced inputs as the industry tries to
maintain its competitiveness in the global environment.
Journal: Applied Economics
Pages: 3893-3906
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.943887
File-URL: http://hdl.handle.net/10.1080/00036846.2014.943887
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3893-3906
Template-Type: ReDIF-Article 1.0
Author-Name: Dong Xiang
Author-X-Name-First: Dong
Author-X-Name-Last: Xiang
Author-Name: Andrew C. Worthington
Author-X-Name-First: Andrew C.
Author-X-Name-Last: Worthington
Author-Name: Helen Higgs
Author-X-Name-First: Helen
Author-X-Name-Last: Higgs
Title: Family ownership, altruism and agency costs in Australian small- and medium-sized enterprises
Abstract:
Given the continuing uncertainty about
whether family firms enjoy lower agency costs, this article hypothesizes
that a combination of the effects of family ownership, altruism and
self-control is instead at play. To begin with, family ownership can
indeed reduce agency costs through better aligning the interests of owners
and managers. This is a 'determining' effect in that it independently
mitigates one source of agency problems. However, altruism combined with
self-control problems arising from the highly concentrated ownership often
found in family firms can also increase agency costs. This is an
'embedding' effect as it is rooted in the personal relationships within
the family firm. Using the Business Longitudinal Database compiled by the
Australian Bureau of Statistics on small- and medium-sized enterprises
(SMEs), we find that for larger SMEs (those with 20-200 employees), the
gains in lower agency costs arising from family ownership are almost
completely offset by the losses from altruism and the lack of
self-control.
Journal: Applied Economics
Pages: 3907-3921
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.946183
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946183
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3907-3921
Template-Type: ReDIF-Article 1.0
Author-Name: Yener Altunbas
Author-X-Name-First: Yener
Author-X-Name-Last: Altunbas
Author-Name: John Thornton
Author-X-Name-First: John
Author-X-Name-Last: Thornton
Title: The (small) blessing of foreign aid: further evidence on aid's impact on democracy
Abstract:
In an empirical contribution to the
literature of foreign aid, we estimate the impact of foreign aid on
democracy in a panel of 93 developing economies during 1971-2010. We find
that foreign aid promotes democracy, with the result robust to different
estimation methodologies and control variables and to instrumenting for
foreign aid.
Journal: Applied Economics
Pages: 3922-3930
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.946186
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946186
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3922-3930
Template-Type: ReDIF-Article 1.0
Author-Name: James Bailey
Author-X-Name-First: James
Author-X-Name-Last: Bailey
Title: Who pays the high health costs of older workers? Evidence from prostate cancer screening mandates
Abstract:
Between 1992 and 2009, 30 US states
adopted laws mandating that health insurance plans cover screenings for
prostate cancer. Because prostate cancer screenings are used almost
exclusively by men over age 50, these mandates raise the cost of insuring
older men relative to other groups. This article uses a triple-difference
empirical strategy to take advantage of this quasi-random natural
experiment in raising the cost of employing older workers. Using
Integrated Public Use Microdata Series data from the March Supplement of
the Current Population Survey, I find that the increased cost of insuring
older workers results in their receiving 2.8% lower hourly wages, being 2%
less likely to be employed and being 0.7% less likely to have
employer-sponsored health insurance.
Journal: Applied Economics
Pages: 3931-3941
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.948673
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948673
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3931-3941
Template-Type: ReDIF-Article 1.0
Author-Name: Eivind Hestvik Brækkan
Author-X-Name-First: Eivind Hestvik
Author-X-Name-Last: Brækkan
Title: Disentangling supply and demand shifts: the impacts on world salmon price
Abstract:
To understand price changes, one must
determine the relative impact of supply and demand shifts on price.
Conditional on predetermined supply and demand elasticities, we retrieve
yearly shifts in regional supply and demand. The relative impact on price
from each supply and demand shift is determined through an equilibrium
displacement model (EDM). This procedure is applied on a yearly basis for
the world salmon market in the period 2002 to 2011. The results indicate a
large variation in demand and supply growth both over time and between
regions. While average annual price impacts from supply or demand shifts
from most regions are not statistically significant, price impacts from
supply or demand shifts for specific periods are detected in all but one
region. This indicates that the use of smooth trend indicators is likely
to be inappropriate for measuring supply and demand shifts and their
impacts on price. The procedure presented in this article can be a useful
instrument for determining the relative impacts of supply and demand
shifts on price in any market with unstable price behaviour.
Journal: Applied Economics
Pages: 3942-3953
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.948674
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948674
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3942-3953
Template-Type: ReDIF-Article 1.0
Author-Name: Clive B. Walker
Author-X-Name-First: Clive B.
Author-X-Name-Last: Walker
Title: Housing booms and media coverage
Abstract:
This article analyses news media coverage
of the housing market. Building on theories of media influence where word
of mouth is the final mechanism of opinion change but media initiate
discourse, I examine the relationship between news media and the recent UK
house price boom. Over 30 000 articles on the UK housing market from
the period 1993 to 2008 are analysed, and it is found that media
Granger-caused real house price changes, suggesting the media may have
influenced opinions on the housing market. However, media sentiment on the
housing market did not change with the secular increase in house prices in
the 2000s, suggesting that the media did not contribute to the UK's
housing boom and may have helped constrain it.
Journal: Applied Economics
Pages: 3954-3967
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.948675
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948675
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3954-3967
Template-Type: ReDIF-Article 1.0
Author-Name: Saša Popović
Author-X-Name-First: Saša
Author-X-Name-Last: Popović
Author-Name: Andrija Đurović
Author-X-Name-First: Andrija
Author-X-Name-Last: Đurović
Title: Intraweek and intraday trade anomalies: evidence from FOREX market
Abstract:
In this article, we search for the
evidence of intraweek and intraday anomalies on the spot foreign exchange
(FOREX) market. Having in mind the international scope of this market,
empirical evidence against market efficiency (i.e. market anomalies) will
have important consequences for the substantial number of FOREX investors
all around the globe. We explore intraweek, intraday and interaction
between days and hour trade anomalies on the FOREX market over the period
of 10 years using hourly time-series data of Euro and US Dollar
(EUR/USD) exchange rate on Swiss FOREX market from 1 January 2004 to 11
January 2014. We compare by analysis of variance test all pairs of mean
returns on a daily, hourly and daily/hourly basis. t-Test
is used to test whether intraday returns are significantly different from
zero. We employ Tukey's honestly significant difference test to explore
which intraday pairs of hourly mean returns are significantly greater than
zero. We find that intraday and interaction between day and hour anomalies
are present in trading EUR/USD on the spot FOREX market over the period of
10 years. The best arbitrage opportunity is evidenced on Fridays,
when selling USD and buying EUR at 00:00 and selling EUR and buying USD at
03:00 the same day.
Journal: Applied Economics
Pages: 3968-3979
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.948676
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948676
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3968-3979
Template-Type: ReDIF-Article 1.0
Author-Name: Jian Wang
Author-X-Name-First: Jian
Author-X-Name-Last: Wang
Author-Name: Xintian Zhuang
Author-X-Name-First: Xintian
Author-X-Name-Last: Zhuang
Author-Name: Jun Yang
Author-X-Name-First: Jun
Author-X-Name-Last: Yang
Author-Name: Jiliang Sheng
Author-X-Name-First: Jiliang
Author-X-Name-Last: Sheng
Title: The effects of optimism bias in teams
Abstract:
This article imports a behavioural
perspective into a team context to study the effort-coordination problem
among agents. Specifically, we investigate how the presence of optimism
bias impacts the severity of the free-rider problem, the organizational
structure of the team and the compensation contracts offered to agents in
equilibrium. The results indicate that all agents become more reluctant to
exert effort and the team welfare decreases when some of its agents are
optimistic, suggesting that optimism aggravates the free-rider problem in
teams. Appointing a team leader makes all agents work harder, and the team
benefits more by having the optimistic agent as its leader. These findings
are in sharp contrast to the effects of overconfidence as identified in
the literature. It is advisable to pay the optimistic agents less than the
rational agents. Encouragingly, optimistic agents can learn about their
own bias in the long run, leaving their team without too much detriment of
optimism.
Journal: Applied Economics
Pages: 3980-3994
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.948678
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948678
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3980-3994
Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Luckstead
Author-X-Name-First: Jeff
Author-X-Name-Last: Luckstead
Author-Name: Seung Mo Choi
Author-X-Name-First: Seung Mo
Author-X-Name-Last: Choi
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: Ron C. Mittelhammer
Author-X-Name-First: Ron C.
Author-X-Name-Last: Mittelhammer
Title: China's catch-up to the US economy: decomposing TFP through investment-specific technology and human capital
Abstract:
We implement a neoclassical growth model
that incorporates investment-specific technology (IST) modifying capital
investment in the law of motion of capital and bifurcates productivity
into human capital and total factor productivity (TFP) in the production
function. We focus on the role of changes in the quality-adjusted price of
investment goods on China's growth by comparing the effects of IST and
human capital on the decomposition of US and Chinese productivity. The
results show that both human capital and IST play an important role in the
decomposition of US TFP. For China, human capital accounts for an
increasingly higher portion of Chinese TFP for the period 1952-2009;
however, IST contributes to the explanation of TFP only after the 1979
reforms. The analysis is extended by considering the impact of IST in the
consumer's investment decision and by projecting both countries' GDP while
modelling unbalanced Chinese growth using catch-up. Our model predicts
that the Chinese economy will surpass the US economy in 2024.
Journal: Applied Economics
Pages: 3995-4007
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.948677
File-URL: http://hdl.handle.net/10.1080/00036846.2014.948677
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:3995-4007
Template-Type: ReDIF-Article 1.0
Author-Name: F. Chen
Author-X-Name-First: F.
Author-X-Name-Last: Chen
Author-Name: X. Sun
Author-X-Name-First: X.
Author-X-Name-Last: Sun
Title: Urban-rural income polarization and economic growth in China: evidence from the analysis of a dynamic panel data model
Abstract:
Using a dynamic panel data model and the
system GMM, this article examines the relationship between urban-rural
income polarization and economic growth at the provincial level in the
period 1995 to 2010 in China. The estimated results and significant tests
indicate that a certain degree of urban-rural income polarization is
beneficial to economic growth at the provincial level in both stages for
China as a whole, though the contribution of urban-rural income
polarization to economic growth is relatively small. Aggravating
urban-rural income polarization has a negative impact on economic growth
in China. Based on a cluster analysis of regional economic growth at the
provincial level, the authors carried out the same analysis separately for
two categories of regions too. The results for those two categories of
regions show that positive correlations also exist between urban-rural
income polarization and economic growth in both stages, which are very
similar to the analysis for the whole of China. In addition, a meaningful
finding can be derived that the contribution of consumption growth rate to
economic growth rate in the second stage is smaller than that in the first
stage obviously.
Journal: Applied Economics
Pages: 4008-4023
Issue: 32
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.950792
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950792
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Handle: RePEc:taf:applec:v:46:y:2014:i:32:p:4008-4023
Template-Type: ReDIF-Article 1.0
Author-Name: X. Chapsa
Author-X-Name-First: X.
Author-X-Name-Last: Chapsa
Author-Name: C. Katrakilidis
Author-X-Name-First: C.
Author-X-Name-Last: Katrakilidis
Title: Assessing economic convergence in the EU: is there a perspective for the 'cohesion countries'?
Abstract:
This article analyses the stochastic income convergence within the EU-15.
The empirical analysis uses per capita GDP, in PPP and in constant prices
of 2005 for the period 1950 to 2010. Apart from the traditional DF type
tests we also account for possible structural changes. In this direction,
we employ the Zivot-Andrews (1992) and the Lee-Strazicich (1999, 2003)
testing procedures, for one and two breaks, endogenously determined.
Furthermore, we apply the Carlino and Mills (1993) methodology proposed
for the detection of β-convergence. The overall
evidence supports the existence of two discrete clubs, the first by the
'cohesion countries' (Portugal, Ireland, Greece and Spain) and the second
by the remaining members. In particular, there is a clear evidence of
convergence within each club, whereas between clubs there is a luck of
catching-up effects. Furthermore, investigation of correlation between
relative per capita GDP of each country and several factors that are often
identified as growth stimulants, namely Total Factor Productivity, FDI,
investment and openness confirm, with the exception of Greece, a strong
association between these factors and the convergence process. However,
progress in the convergence has not been uniform across countries and over
time, reflecting the specific interactions between domestic and
international factors and their impact on the convergence process of
individual countries.
Journal: Applied Economics
Pages: 4025-4040
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.946185
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946185
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4025-4040
Template-Type: ReDIF-Article 1.0
Author-Name: J. R. Kim
Author-X-Name-First: J. R.
Author-X-Name-Last: Kim
Author-Name: K. Chung
Author-X-Name-First: K.
Author-X-Name-Last: Chung
Title: Regime switching and the (in)stability of the price-rent relationship: evidence from the US
Abstract:
Present value models of house prices assert that in the absence of
self-fulfilling bubbles, a house price is equal to the present discount
value of all future rents, which implies a linear relationship between
house price and rent, and hence a stable price-to-rent ratio. Using a
Markov switching error correction model, we re-examine this relationship
in the US housing market and find two distinctive regimes: one with a
long-run relation between house price and rent predicted by the present
value models and the other in which the relation is nonlinear.
Furthermore, we find evidence that deviations of house prices from the
present value models' predictions are caused by the overreaction of house
prices to movements in rents rather than speculative bubbles attributable
to extraneous factors.
Journal: Applied Economics
Pages: 4041-4052
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.950793
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950793
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4041-4052
Template-Type: ReDIF-Article 1.0
Author-Name: J. Stevens
Author-X-Name-First: J.
Author-X-Name-Last: Stevens
Author-Name: P. de Lamirande
Author-X-Name-First: P.
Author-X-Name-Last: de Lamirande
Title: Testing the efficiency of the futures market for crude oil in the presence of a structural break
Abstract:
The efficiency of the futures market for crude oil has been the subject of
significant study, with the basis regression representing a popular
methodology. However, the parameters of this model are subject to a
structural break, casting doubt on any conclusion regarding the efficiency
of the futures market. To address this problem, this article employs a
simple generalization which is capable of testing the efficiency of a
futures market in the presence of a structural break. Using this approach,
strong evidence of inefficiency is found in the one month futures contract
for West Texas Intermediate for the period between 1985 and 2013, which is
otherwise not detected.
Journal: Applied Economics
Pages: 4053-4059
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.950794
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950794
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4053-4059
Template-Type: ReDIF-Article 1.0
Author-Name: Kui-Wai Li
Author-X-Name-First: Kui-Wai
Author-X-Name-Last: Li
Title: An analysis on economic opportunity
Abstract:
Although economic opportunity is considered as a latent variable, it can
serve as another factor in promoting growth and development. Through the
construction of an economic opportunity index, this article identifies the
extensity and intensity channels through which economic opportunity is
created. Data on 24 variables for 184 world economies for the period 2000
to 2010 are collected for the empirical analysis. The methodology involves
the use of principal component analysis in constructing three indices for
the parametric and nonparametric regression analyses. The country sample
is divided into OECD and non-OECD economies so as to examine their
different performances. Extensity seems to be the more important channel
to all economies, but for non-OECD economies, a higher performance in
intensity can enrich the effect of extensity on economic opportunity.
Journal: Applied Economics
Pages: 4060-4074
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.950795
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950795
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4060-4074
Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Title: Is the pragmatic response to International Monetary Fund quotas and credit limits favourable?
Abstract:
Under the International Monetary Fund (IMF)'s recently developed pragmatic
response, the amount a member can borrow is not determined by its quota.
We consider two pragmatic responses that produce a Pareto improvement,
compared with the IMF rule: one mandated by the IMF and the other related
to the trade of the additional credit limit in the market. Both these
responses indicate that the additional credit limit on top of the IMF rule
should be positive (negative) for a country whose investment return is
larger (smaller) than the average investment return across all IMF member
developing countries. The rule for the IMF credit limit does not reflect
the demand for credit, which induces inefficiency. The first pragmatic
response, which has an appropriately small negotiation and distribution
cost per unit incurred by the IMF, may dominate the second one.
Journal: Applied Economics
Pages: 4075-4082
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.950796
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950796
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4075-4082
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner
Author-X-Name-First: Joachim
Author-X-Name-Last: Wagner
Title: Is export diversification good for profitability? First evidence for manufacturing enterprises in Germany
Abstract:
This article uses a tailor-made newly available data set for enterprises
from manufacturing industries in Germany to investigate for the first time
the links between export diversification over destination countries and
goods on the one hand and the profitability of the exporting firms on the
other hand. We find that profits tend to be larger in firms with less
diversified export sales over goods and in firms with more diversified
export sales over destination countries.
Journal: Applied Economics
Pages: 4083-4090
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.950797
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950797
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4083-4090
Template-Type: ReDIF-Article 1.0
Author-Name: Santosh Kumar
Author-X-Name-First: Santosh
Author-X-Name-Last: Kumar
Author-Name: Emily A. Dansereau
Author-X-Name-First: Emily A.
Author-X-Name-Last: Dansereau
Author-Name: Christopher J. L. Murray
Author-X-Name-First: Christopher J. L.
Author-X-Name-Last: Murray
Title: Does distance matter for institutional delivery in rural India?
Abstract:
This article estimates the causal effect of distance to health facility on
in-facility birth in rural India, taking into account the endogenous
placement of the health facility. We find that women living farther away
from the health facilities are less likely to give birth at a health
facility. Each additional kilometre from the nearest health facility is
associated with a 4.4% decline in the probability of in-facility birth.
Policy simulation results indicate that providing access to a health
facility within 5 km would increase institutional delivery by 10%.
Overall, our findings confirm that distance is an important barrier to
in-facility births in rural India.
Journal: Applied Economics
Pages: 4091-4103
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.950836
File-URL: http://hdl.handle.net/10.1080/00036846.2014.950836
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4091-4103
Template-Type: ReDIF-Article 1.0
Author-Name: Les Coleman
Author-X-Name-First: Les
Author-X-Name-Last: Coleman
Title: Involuntary corporate finance: the dominance of history in decisions
Abstract:
Lagged values of corporate finance decisions are known to be economically
important, but most analyses ignore them. This article examines the
influence on five key financial decisions of previous decisions using a
data set that includes industry census data. It finds that lagged values
explain between 25% and 36% of decisions on leverage, payout and
investment, which gives them strong predictive ability. In regression of
these decisions on firm and industry traits, omission of lagged values
leads to a change of around one-third in parameter estimates, and so
significantly overstates their impact. The influence of lagged values
persists, and for most decisions is significant for several years. Given
the stickiness in financial decisions, there are potentially significant
analytical problems from ignoring their lagged values.
Journal: Applied Economics
Pages: 4104-4115
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.952889
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952889
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4104-4115
Template-Type: ReDIF-Article 1.0
Author-Name: R. Guo
Author-X-Name-First: R.
Author-X-Name-Last: Guo
Author-Name: P. Zhang
Author-X-Name-First: P.
Author-X-Name-Last: Zhang
Title: A general method of computing the cut-off point in adverse selection models
Abstract:
Based on the model set-up in Laffont and Tirole (1986)'s seminal paper
'Using Cost Observation to Regulate Firms', we provide a general method of
computing the cut-off point above which inefficient firms should be shut
down under asymmetric information. With the help of the transversality
conditions in optimal control, this method of computing the cut-off point
is directly applicable to other adverse selection models under asymmetric
information provided the optimization problem in these models could be
written as an optimal control problem.
Journal: Applied Economics
Pages: 4116-4124
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.952890
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952890
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4116-4124
Template-Type: ReDIF-Article 1.0
Author-Name: Rabindra Nepal
Author-X-Name-First: Rabindra
Author-X-Name-Last: Nepal
Author-Name: Tooraj Jamasb
Author-X-Name-First: Tooraj
Author-X-Name-Last: Jamasb
Author-Name: Clement Allan Tisdell
Author-X-Name-First: Clement Allan
Author-X-Name-Last: Tisdell
Title: Market-related reforms and increased energy efficiency in transition countries: empirical evidence
Abstract:
Energy efficiency improvement is a desirable response to growing climate
change and security of energy supply concerns. This article studies the
impacts of a varied set of macro-level market-oriented reforms as well as
structural change on economy-wide measure of energy efficiency across a
group of the transition countries. These countries experienced a rapid
marketization process, which, since the early 1990s, transformed their
economies from central planning towards market-driven models. We use a
bias-corrected fixed-effect analysis technique to estimate this effect for
the period 1990 to 2010. The results suggest that reforms aimed at market
liberalization, financial sector and most infrastructure industries drove
energy efficiency improvements. We find significant differences in
improvements in energy efficiency between transitional Central European
and Baltic States, South East Europe ones and the Commonwealth of
Independent States. The reasons for these differences are also discussed.
Journal: Applied Economics
Pages: 4125-4136
Issue: 33
Volume: 46
Year: 2014
Month: 11
X-DOI: 10.1080/00036846.2014.952894
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952894
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Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4125-4136
Template-Type: ReDIF-Article 1.0
Author-Name: Jeng-Yan Tsai
Author-X-Name-First: Jeng-Yan
Author-X-Name-Last: Tsai
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Chu-Yun Cheng
Author-X-Name-First: Chu-Yun
Author-X-Name-Last: Cheng
Title: Government bailouts and default risks of a duopoly: strong bank versus weak bank
Abstract:
A duopolistic loan market includes a strong bank without the problem of
early closure that opts out of government bailouts and a weak bank with
this problem that participates in the bailout programmes of distressed
loan purchases and direct equity injections. A direct implication of our
framework is that the strong bank's equity will be priced as a standard
call option, while the weak bank's equity will be priced as a down-and-out
call option. We find that an increase in either bailout (i.e. distressed
loan purchases and direct equity injections) directly decreases the weak
bank's default risk but indirectly increases the strong bank's default
risk. Accordingly, either bailout contributes to banking stability since
the indirect positive effect insufficiently offsets the direct negative
effect, giving an overall negative response of default risks to an
increase in either bailout. Higher competition by shifting to
quasi-competition from collusion increases banking stability under either
bailout. Our analysis suggests that competition is aligned with the
regulatory objective of improving stability.
Journal: Applied Economics
Pages: 4137-4150
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.932048
File-URL: http://hdl.handle.net/10.1080/00036846.2014.932048
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4137-4150
Template-Type: ReDIF-Article 1.0
Author-Name: James Rude
Author-X-Name-First: James
Author-X-Name-Last: Rude
Author-Name: Yves Surry
Author-X-Name-First: Yves
Author-X-Name-Last: Surry
Author-Name: Robert Kron
Author-X-Name-First: Robert
Author-X-Name-Last: Kron
Title: A generalized double-hurdle model of Swedish gambling expenditures
Abstract:
This article estimates the relationship between demand for Swedish
gambling, income and the other socioeconomic variables using empirical
models of participation and gambling expenditure. It also indirectly
attempts to account for the effect of a recent recession on gambling
behaviour by examining gambling behaviour when the economy was growing
versus the period immediately after a major recession. The aim of the
article is to analyse the factors influencing gambling decisions. This is
done using the double-hurdle method adjusted for the problems of
heteroscedasticity and nonnormality using an approach that can handle
extreme values and address skewness. The empirical results ruled out
Tobit-type models and normally distributed double-hurdle models. The
pattern on income elasticities across income classes implies that implicit
Swedish gaming taxes are regressive. Income elasticities become smaller
after the recession and the decision to participate changed with respect
to the several of the demographic variables.
Journal: Applied Economics
Pages: 4151-4163
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.939376
File-URL: http://hdl.handle.net/10.1080/00036846.2014.939376
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4151-4163
Template-Type: ReDIF-Article 1.0
Author-Name: Joscha Beckmann
Author-X-Name-First: Joscha
Author-X-Name-Last: Beckmann
Author-Name: Ansgar Belke
Author-X-Name-First: Ansgar
Author-X-Name-Last: Belke
Author-Name: Florian Verheyen
Author-X-Name-First: Florian
Author-X-Name-Last: Verheyen
Title: Exchange rate pass-through into German import prices - a disaggregated perspective
Abstract:
This study analyses the exchange rate pass-through into German import
prices based on disaggregated data taken on a monthly basis between 1995
and 2012. Our main contribution is twofold: firstly, we employ various
time-series techniques to analyse data for different product categories,
and also cointegration techniques to carefully distinguish between
short-run and long-run pass-through coefficients. Secondly, in a panel
data approach we estimate time-varying pass-through coefficients and
explain their development with regard to various macroeconomic factors.
Our results show that long-run pass-through is only partly observable and
incomplete, whereas short-run pass-through shows a more unique character,
although heterogeneity across product groups does exist. We are also able
to identify several macroeconomic factors that determine changes in the
degree of pass-through, which is especially relevant for policymakers.
Journal: Applied Economics
Pages: 4164-4177
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.946184
File-URL: http://hdl.handle.net/10.1080/00036846.2014.946184
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4164-4177
Template-Type: ReDIF-Article 1.0
Author-Name: Mariya Burdina
Author-X-Name-First: Mariya
Author-X-Name-Last: Burdina
Author-Name: Michael Wright
Author-X-Name-First: Michael
Author-X-Name-Last: Wright
Author-Name: Zhen Zhu
Author-X-Name-First: Zhen
Author-X-Name-Last: Zhu
Title: Is the stock market sticker shocked? A study of market response to recent CAFE regulations in the US
Abstract:
In response to increasing environmental concerns, to improve energy
security and to conserve energy use, the US government has proposed a new
round of Corporate Average Fuel Economy (CAFE) standards. Many studies
have focused on how the CAFE standard can be met by various automakers
that have sales in the US market, and the costs and benefits of the
companies meeting the standard. However, the stock markets' view on the
impact of the standard on automakers' profitability is largely absent. We
study the more recent episode of the CAFE regulation in an effort to try
to detect the market response using the standard event study method. Our
empirical findings suggest that while the stock market had some responses
to the regulation, the large-scale and systematic reaction to the
regulation is absent. In addition, the market response pattern to the
regulation appears to be tied to the individual company's compliance
condition if there is any significant response at all.
Journal: Applied Economics
Pages: 4178-4189
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.952891
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952891
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4178-4189
Template-Type: ReDIF-Article 1.0
Author-Name: Shenglong Liu
Author-X-Name-First: Shenglong
Author-X-Name-Last: Liu
Author-Name: Guifu Chen
Author-X-Name-First: Guifu
Author-X-Name-Last: Chen
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: Empirical research on monetary policy, asset prices and inflation: an analysis based on provincial panel data in China
Abstract:
In this article, we investigate the dynamic correlations among monetary
policy, asset prices and inflation and assess the regional effects of
monetary policy in China for the period October 2007 to July 2013. We
focus on the interdependencies among monetary policy and asset price
fluctuations by using the Shanghai Interbank Offered Rate as the preferred
variable for analysing monetary policy movement. In particular, we apply a
vector autoregressive model in a panel setting, which allows researchers
to examine variations over time or across individual regions. The
empirical results presented herein indicate that monetary policy reacts
actively to asset prices, although it is still shown to be ineffective. In
addition, we find that asset prices display some regional differences in
their response to an unexpected monetary policy shock.
Journal: Applied Economics
Pages: 4190-4204
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.952892
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952892
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4190-4204
Template-Type: ReDIF-Article 1.0
Author-Name: Firat Yaman
Author-X-Name-First: Firat
Author-X-Name-Last: Yaman
Title: Ethnic externalities in education and second-generation immigrants
Abstract:
I analyse the role of ethnic and native human capital - defined,
respectively, as the average years of schooling of ethnic groups and of
natives within a specific region - and of ethnic concentrations in the
educational attainment of second-generation immigrants in Germany.
Compared to natives' children, parents' education has a small and
insignificant effect on second-generation immigrants' education. Ethnic
concentrations have a negative effect, while ethnic capital is
insignificant. The effect of native capital, too, is insignificant but
much larger in magnitude than the effect of ethnic capital. For women,
mother's education is relatively more important. For men, ethnic
concentrations constitute a stronger impediment to educational attainment
than for women.
Journal: Applied Economics
Pages: 4205-4217
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.952893
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952893
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4205-4217
Template-Type: ReDIF-Article 1.0
Author-Name: A. Monta
Author-X-Name-First: A.
Author-X-Name-Last: Monta
Author-Name: L. Olmos
Author-X-Name-First: L.
Author-X-Name-Last: Olmos
Title: Do the Spanish regions converge? A unit root analysis for the HDI of the Spanish regions
Abstract:
This article studies the possible stochastic convergence between the
Spanish regions in 1980-2010. The application of unit root techniques to
the new Human Development Index recently calculated in Herrero et
al. (2013) allows us to show that the evolution of the Spanish
economy can be better understood as the sum of divergent forces rather
than as a group of convergent regions. Similar conclusions can be drawn
when the per capita GDP is used, although these two
variables exhibit different patterns of behaviour at the end of the
sample. Finally, we also observe that the distance between northern and
southern regions has increased since 2000.
Journal: Applied Economics
Pages: 4218-4230
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.952895
File-URL: http://hdl.handle.net/10.1080/00036846.2014.952895
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4218-4230
Template-Type: ReDIF-Article 1.0
Author-Name: K. Farla
Author-X-Name-First: K.
Author-X-Name-Last: Farla
Title: Determinants of firms' investment behaviour: a multilevel approach
Abstract:
This article investigates the determinants of firms' investment behaviour
using firm data from 101 developing and emerging economies. A substantial
number of firms does not invest in fixed capital or invests little
relative to sales revenue. Using a multilevel probit model we study what
factors trigger investment, and using a multilevel Heckman selection model
we study what factors influence a firm's investment-to-sales ratio. We
find that firms' investment behaviour has relatively little dependency on
a country's macroeconomic setting. Additionally, we find that, on average,
firms that are completely foreign-owned have a relatively lower
investment-to-sales ratio. Finally, we find evidence which suggests that
the probability of investing is higher for firms located in countries with
more control of corruption and we find some evidence which suggests that
partially foreign-owned firms located in countries with relatively less
corruption have a relatively higher investment-to-sales ratio.
Journal: Applied Economics
Pages: 4231-4241
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.955167
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955167
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4231-4241
Template-Type: ReDIF-Article 1.0
Author-Name: Neil R. Meredith
Author-X-Name-First: Neil R.
Author-X-Name-Last: Meredith
Title: Religious service attendance and labour force status: evidence from survey data using count data methods
Abstract:
I undertake count data estimation with data from the National Longitudinal
Survey of Youth 1979 cohort and the Health and Retirement Study to
evaluate the relationship between time spent out of the labour force and
the frequency of religious service attendance for individuals of working
age. I also examine whether being out of the labour force is correlated
with the frequency of religious service attendance. Results using Poisson
fixed-effect and negative binomial estimation suggest that men under age
50 appear to attend religious services less frequently when out of the
labour force. I ascribe this finding to younger men's religious service
attendance being related to having work or the pursuit of work. Men
between ages 50 and 65 attend religious services less frequently when out
of the labour force, which I attribute to serious health problems in later
age forcing labour market exiting and reduced frequency of religious
service attendance. Women between ages 50 and 65 attend religious services
more frequently when out of the labour force, which I ascribe to having
more time to pursue religious activity in addition to women's established
proclivity to religious commitment.
Journal: Applied Economics
Pages: 4242-4255
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.955253
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955253
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4242-4255
Template-Type: ReDIF-Article 1.0
Author-Name: Robert M. McNab
Author-X-Name-First: Robert M.
Author-X-Name-Last: McNab
Author-Name: Diana I. Angelis
Author-X-Name-First: Diana I.
Author-X-Name-Last: Angelis
Title: Does computer-based training impact maintenance costs and actions? An empirical analysis of the US Navy's AN/SQQ-89(v) sonar system
Abstract:
The United States Navy decided in the early 2000s to replace traditional,
instructor-led schoolhouse training with computer-based training (CBT).
While employing CBT may produce gains in knowledge acquisition and lower
costs for repetitive, low-skill work, there is a lack of empirical
evidence whether these benefits exist for more highly skilled Navy
operations. Anecdotal evidence suggests that CBT failed to sufficiently
prepare new sailors for sophisticated systems' maintenance and operation.
To determine the validity of this evidence, we examine how CBT has
affected the AN/SQQ-89(v) sonar. We empirically analyse whether the Navy's
introduction of CBT significantly altered fleet maintenance costs, actions
and training requirements, by assembling a unique data set of ships,
locations, personnel, maintenance costs and maintenance actions.
Controlling for the Navy's plan to man the system, the number of
authorized billets and the number of personnel on board, we find that CBT
adversely impacts costs, actions and maintenance hours for the sonar
system.
Journal: Applied Economics
Pages: 4256-4266
Issue: 34
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.955254
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955254
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:34:p:4256-4266
Template-Type: ReDIF-Article 1.0
Author-Name: Wai-Yip Alex Ho
Author-X-Name-First: Wai-Yip Alex
Author-X-Name-Last: Ho
Author-Name: James Yetman
Author-X-Name-First: James
Author-X-Name-Last: Yetman
Title: Do economies stall?
Abstract:
A 'stalling' economy has been defined as one that experiences a discrete
deterioration in economic performance following a decline in its growth
rate to below some threshold level. We examine the international evidence
for stalling in a panel of 51 economies using two different definitions of
a stall threshold (time-invariant and related to lagged average growth
rates). We find that the evidence for stalling is limited: only 7-12 of
the economies in our sample experience statistically significant stalls at
the 5% level based on any one definition.
Journal: Applied Economics
Pages: 4267-4275
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.955255
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955255
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4267-4275
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Artz
Author-X-Name-First: Benjamin
Author-X-Name-Last: Artz
Author-Name: David M. Welsch
Author-X-Name-First: David M.
Author-X-Name-Last: Welsch
Title: Childcare quality and pricing: evidence from Wisconsin
Abstract:
Childcare prices vary dramatically both between and within states. We
identify the effects of demographic and provider characteristics on
childcare pricing, but focus primarily on whether unique
government-provided information on childcare quality has an effect on
pricing. Using provider-level observations across three adjacent counties
in southern Wisconsin, we find that this government-provided information
on childcare quality does not significantly affect pricing. Recognizing
that information asymmetry may be the root cause of the insignificant
relationship, we test the relationship further within multiple subsamples
and with alternative models. Only the lowest quality childcare providers
are significantly associated with lower prices in areas that we
hypothesize suffer from greater information asymmetry.
Journal: Applied Economics
Pages: 4276-4289
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.955256
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955256
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4276-4289
Template-Type: ReDIF-Article 1.0
Author-Name: John Kandrac
Author-X-Name-First: John
Author-X-Name-Last: Kandrac
Title: Modelling the causes and manifestation of bank stress: an example from the financial crisis
Abstract:
In this study, I model the predictors and manifestation of bank stress
during the financial crisis using a Multiple Indicator Multiple Cause
model. Unlike most early warning models that predict failure
probabilities, this article describes a framework for predicting a broader
notion of bank stress that need not rely on regulatory decisions. As such,
this method can be easily applied to large institutions, and avoids the
complications associated with modelling a regulatory decision such as
failure or a CAMELS downgrade. Using bank reliance on Term Auction
Facility funds and the out-of-sample incidence of failures and
acquisitions, I demonstrate that the measure of bank stress generated here
accords with other notions of bank-level distress. Finally, this method
catalogues predictors of distress during the financial crisis. Thus, this
article can help assess the validity of several recent regulatory
proposals. I find that those banks entering the crisis with more Tier 1
capital, more liquid balance sheets, and relatively stable liabilities
subsequently came under less stress. These findings support the Basel III
recommended increases in banks' capital adequacy, liquidity and stable
funding.
Journal: Applied Economics
Pages: 4290-4301
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.955257
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955257
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4290-4301
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Dreger
Author-X-Name-First: Christian
Author-X-Name-Last: Dreger
Author-Name: Yanqun Zhang
Author-X-Name-First: Yanqun
Author-X-Name-Last: Zhang
Title: On the relevance of exports for regional output growth in China
Abstract:
Despite high economic growth during the past decades, China is still
vulnerable to shocks arising from industrial states. The advanced
economies strongly influence Chinese export performance, with subsequent
effects on output growth. Using a production function, this article
examines to which extent regional GDP growth in China is export driven. In
a panel of 28 Chinese provinces, series are splitted into common and
idiosyncratic components, the latter being stationary. The results
indicate cointegration between the common components of GDP, the capital
stock and exports. In equilibrium, exports increase GDP by more than their
impact expected from the national accounts. While exports and capital are
weakly exogenous, GDP responds to deviations from the long run. A similar
adjustment pattern can be detected for most regions, except for some
provinces in the Western part of the country.
Journal: Applied Economics
Pages: 4302-4308
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.955258
File-URL: http://hdl.handle.net/10.1080/00036846.2014.955258
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4302-4308
Template-Type: ReDIF-Article 1.0
Author-Name: J. C. Hadrich
Author-X-Name-First: J. C.
Author-X-Name-Last: Hadrich
Author-Name: J. J. Jackson
Author-X-Name-First: J. J.
Author-X-Name-Last: Jackson
Title: Livestock emissions regulation with unknown damages and strategic technology adoption
Abstract:
Livestock emissions have been identified as a contributor to greenhouse
gas build-up yet have remained unregulated in the US. A game-theoretic
model in the style of Tarui and Polasky (2005) was analysed where the
dairy industry strategically chooses to abate air emissions with
technology adoption and herd size decisions while a regulator chooses a
tax rate on emissions to satisfy the desires of competing interest groups.
This model allows the effects of potential air emission regulation on the
dairy industry to be evaluated. Results demonstrate that dairy farms react
to the increased cost of air regulation by decreasing herd size rather
than investing in air emission abatement technology in the short run. This
suggests that incentives may need to be put in place to induce adoption in
emissions abatement technology at the livestock level in the long run.
Journal: Applied Economics
Pages: 4309-4317
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.957440
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957440
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4309-4317
Template-Type: ReDIF-Article 1.0
Author-Name: Nannan Yuan
Author-X-Name-First: Nannan
Author-X-Name-Last: Yuan
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: Crowding-out effects of affordable and unaffordable housing in China, 1999-2010
Abstract:
Using panel data on housing construction, this article examines the
crowding-out effects of affordable and unaffordable housing in China from
1999 to 2010. Applying a dynamic panel model allows us to examine the
dynamic interactions between affordable and unaffordable housing
constructions when controlling for region-specific fixed and time-specific
effects. We analyse whether affordable (unaffordable) housing construction
has changed in response to the past and contemporaneous construction of
unaffordable (affordable) housing. Our empirical results reveal an
asymmetric crowding-out pattern between affordable and unaffordable
housing. We also observe that when urbanization rate is lower than 57.39%,
unaffordable housing construction crowds out affordable housing
construction. Moreover, the crowding-out effect of unaffordable housing on
affordable housing decreases with rising urbanization rates.
Journal: Applied Economics
Pages: 4318-4333
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.957441
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957441
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4318-4333
Template-Type: ReDIF-Article 1.0
Author-Name: V. Masson
Author-X-Name-First: V.
Author-X-Name-Last: Masson
Author-Name: N. Sim
Author-X-Name-First: N.
Author-X-Name-Last: Sim
Author-Name: L. Wedding
Author-X-Name-First: L.
Author-X-Name-Last: Wedding
Title: Did the AFL equalization policy achieve the evenness of the league?
Abstract:
In this article, we investigate whether the Australian Football League
intervention policies coincided with a more even-playing field in the
league, as captured by individual match margins. We find that only two out
of the eight major policies implemented over the last hundred years are
correlated with lower margin.
Journal: Applied Economics
Pages: 4334-4344
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.957442
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957442
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4334-4344
Template-Type: ReDIF-Article 1.0
Author-Name: Jinhwa Chung
Author-X-Name-First: Jinhwa
Author-X-Name-Last: Chung
Author-Name: Seonghoon Jeon
Author-X-Name-First: Seonghoon
Author-X-Name-Last: Jeon
Title: Portfolio effects in conglomerate mergers: the empirical evidence of leverage effects in Korean liquor market
Abstract:
In the article, we implement an empirical test on the portfolio effects of
conglomerate mergers, using the data of Korean liquor market during the
period 1990-2008 in which there have been several important conglomerate
mergers between beer and soju companies. We find that the combined company
could take the advantage of regional market dominance in the beer market
in expanding regional market shares in the soju market. Such leverage
effects are differentiated from the efficiency-enhancing portfolio effects
that result in the combined company's expanding shares over all regional
soju markets regardless of the presence of dominance in the beer market.
The common distribution channels of liquor wholesalers seem to play a
pivotal role in the combined firm's expansion of dominance in one market
into another. Furthermore, we implement separate empirical tests for two
subsamples of regionally dominant and nondominant soju companies in order
to differentiate the leverage effects of foreclosure from those of
toehold. The empirical results show the evidence of leverage effects only
for a sample of nondominant soju companies. This implies that the leverage
effects of conglomerate mergers between beer and soju companies in Korea
had pro-competitive effects in that the combined firm could compete more
effectively with regionally dominant companies with the leverage of
dominance in the beer market as toehold.
Journal: Applied Economics
Pages: 4345-4359
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.957443
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957443
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4345-4359
Template-Type: ReDIF-Article 1.0
Author-Name: B. Mak Arvin
Author-X-Name-First: B. Mak
Author-X-Name-Last: Arvin
Author-Name: Rudra P. Pradhan
Author-X-Name-First: Rudra P.
Author-X-Name-Last: Pradhan
Title: Broadband penetration and economic growth nexus: evidence from cross-country panel data
Abstract:
This article investigates whether there are Granger causal relationships
between broadband penetration, degree of urbanization, foreign direct
investment and economic growth using a panel data set covering the G-20
countries for the period 1998-2011. Using our multivariate framework, we
first find that all of the variables are cointegrated. Our findings
further reveal a network of causal connections between the variables
including short-run bidirectional causality between broadband penetration
and economic growth among the more developed countries within the G-20. On
the other hand, for the developing countries within the G-20, there is
evidence of unidirectional causality from economic growth to broadband
penetration.
Journal: Applied Economics
Pages: 4360-4369
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.957444
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957444
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4360-4369
Template-Type: ReDIF-Article 1.0
Author-Name: Kristie Briggs
Author-X-Name-First: Kristie
Author-X-Name-Last: Briggs
Author-Name: Mary Wade
Author-X-Name-First: Mary
Author-X-Name-Last: Wade
Title: More is better: evidence that joint patenting leads to quality innovation
Abstract:
Joint ownership of a patent is most often viewed by firms as a second-best
option compared to single, monopoly ownership. However, the results of
this article suggest that there may be reason for businesses and
policymakers to incentivize joint patenting behaviour. This is because,
joint patent ownership is found to positively impact the quality of an
innovation (as measured by forward patent citations). In addition, the
degree of quality increases with the number of patent owners. Since past
research confirms the important links between patent quality and ongoing
innovation, and between innovation and growth, those factors that impact
patent quality are deserving of attention. Economic research on joint
patenting is currently limited, but we hope to shed light on the
importance of expanding dialogue on this topic.
Journal: Applied Economics
Pages: 4370-4379
Issue: 35
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.957446
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957446
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4370-4379
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rene頶an Eyden
Author-X-Name-First: Rene頍
Author-X-Name-Last: van Eyden
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Time-varying linkages between tourism receipts and economic growth in South Africa
Abstract:
The causal link between tourism receipts and GDP has recently become a
major focus in the tourism economics literature. Results obtained in
recent studies about the causal link appear to be sensitive with respect
to the countries analysed, sample period and methodology employed.
Considering the sensitivity of the causal link, we use rolling window and
time-varying coefficient estimation methods to analyse the parameter
stability and Granger causality based on a vector error correction model
(VECM). When applied to South Africa for the period 1960-2011, the
findings are as follows: results from the full-sample VECM indicate that
there is no Granger causality between tourism receipts and GDP, while the
findings from the time-varying coefficients model based on the state-space
representation show that tourism receipts have positive-predictive content
for GDP for the entire period, with the exception of the period between
1985 and 1990. Full-sample time-varying causality tests show bidirectional
strong causality between tourism receipts and GDP.
Journal: Applied Economics
Pages: 4381-4398
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.957445
File-URL: http://hdl.handle.net/10.1080/00036846.2014.957445
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4381-4398
Template-Type: ReDIF-Article 1.0
Author-Name: Gulgun Bayaz-Ozturk
Author-X-Name-First: Gulgun
Author-X-Name-Last: Bayaz-Ozturk
Author-Name: Tao Chen
Author-X-Name-First: Tao
Author-X-Name-Last: Chen
Author-Name: Kenneth A. Couch
Author-X-Name-First: Kenneth A.
Author-X-Name-Last: Couch
Title: Intragenerational mobility and the ratio of permanent to total inequality
Abstract:
This article provides finite sample conditions for the ratio of permanent
to total inequality based on methods of Gottschalk and Moffitt (1994) to
be equivalent to the Shorrocks R constructed with a Theil
General Entropy Index. A simple test emerges of whether the two measures
can be seen as equivalent that reveals the implicit social weighting
placed on different parts of the income distribution by the
Gottschalk-Moffitt methods. Using data from the PSID and the SOEP for
annual income from 1984 through 2006, the condition for the two measures
to be equivalent is found to be satisfied in both data sets.
Journal: Applied Economics
Pages: 4399-4408
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.962225
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962225
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4399-4408
Template-Type: ReDIF-Article 1.0
Author-Name: Tine Hjernø Lesner
Author-X-Name-First: Tine Hjernø
Author-X-Name-Last: Lesner
Author-Name: Ole Dahl Rasmussen
Author-X-Name-First: Ole Dahl
Author-X-Name-Last: Rasmussen
Title: The identifiable victim effect in charitable giving: evidence from a natural field experiment
Abstract:
We design a natural field experiment to enhance our understanding of the
role of the identifiable victim effect in charitable giving. Using direct
mail solicitations to 25 797 prior donors of a nonprofit charity, we
tested the responsiveness of donors to make a contribution to either an
identifiable or a statistical victim. Unlike much previous research, which
has used only laboratory experiments, we find that the campaign letter
focusing on one identifiable victim did not result in significantly larger
donations than the campaign letter focusing on the statistical victim. In
addition to the role of the identifiable victim, we investigate the degree
to which each of our campaign letters affected donors' payments to other
concurrent and future campaigns and whether there is decreasing marginal
returns to campaigning in the sense that receiving a letter crowds out
donors' payments to other future and concurrent campaigns. We find some
evidence of crowding out, indicating that charitable giving could be a
zero-sum game; however, the treatment letters did not have different
effects on other payments.
Journal: Applied Economics
Pages: 4409-4430
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.962226
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962226
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4409-4430
Template-Type: ReDIF-Article 1.0
Author-Name: Meliyanni Johar
Author-X-Name-First: Meliyanni
Author-X-Name-Last: Johar
Author-Name: Jeffrey Truong
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Truong
Title: Direct and indirect effect of depression in adolescence on adult wages
Abstract:
It is well recognized that a depressive mental state can persist for a
long time, and this can adversely impact labour market outcomes. The aim
of this article is to examine the direct association between depression
status in late-teenage years and adult wages, as well as the indirect
association, operating through accumulated education, experience and
occupation choice. Using the National Longitudinal Survey of Youth 1997
data, we find adolescent depression is associated with a wage penalty of
around 10-15%, but its mechanics are very different for males and females.
For males, about three quarters of the wage penalty is through the direct
channel, whilst for females the indirect effect channel is dominant. The
indirect channel is driven by lower accumulated education, mostly because
depression discourages further study post high school. These results are
important because they imply that the association between adolescent
depression and wages is stronger than has been estimated in previous
cross-sectional studies.
Journal: Applied Economics
Pages: 4431-4444
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.962227
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962227
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4431-4444
Template-Type: ReDIF-Article 1.0
Author-Name: Ayako Saiki
Author-X-Name-First: Ayako
Author-X-Name-Last: Saiki
Author-Name: Jon Frost
Author-X-Name-First: Jon
Author-X-Name-Last: Frost
Title: Does unconventional monetary policy affect inequality? Evidence from Japan
Abstract:
Inequality has been largely ignored in the literature and practice of
monetary policy, but is gaining more attention recently. Here, we
exclusively focus on the impact of unconventional monetary policy (UMP) on
inequality. We look at how the recent UMP in Japan affected inequality,
using household survey data. Our vector auto regression (VAR) results show
that UMP widened income inequality after 2008Q3 as the Bank of Japan (BoJ)
resumed its zero-interest rate policy and reinstated UMP. This is largely
due to the portfolio channel. To the best of our knowledge, this is the
first study to empirically analyse the distributional impact of UMP.
Japan's extensive experience with UMP may hold important policy
implications for other countries.
Journal: Applied Economics
Pages: 4445-4454
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.962229
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962229
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4445-4454
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Author-Name: Jan-Egbert Sturm
Author-X-Name-First: Jan-Egbert
Author-X-Name-Last: Sturm
Title: Robust determinants of health care expenditure growth
Abstract:
Our aim is to disclose robust explanatory variables for health care
expenditure (HCE) growth by introducing to this field of research a method
that is especially well suited for situations of 'model uncertainty': the
Extreme Bounds Analysis (EBA). We analyse data for 33 OECD countries over
the period 1970-2010 and include - as far as it is statistically feasible
- all macroeconomic and institutional determinants of HCE
growth in the EBA that have been suggested in the literature. Furthermore,
we analyse to what extent outliers in the data influence the results. Our
results confirm earlier findings that GDP growth and a variable
representing Baumol's 'cost disease' theory emerge as robust and
statistically significant determinants of HCE growth. Depending on whether
or not outliers are excluded, we find up to six additional robust drivers:
the growth in expenditure on health administration, the change in the
share of inpatient expenditure in total health expenditure, the (lagged)
government share in GDP, the change in the insurance coverage ratio, the
growth in land traffic fatalities and the growth in the population share
undergoing renal dialysis.
Journal: Applied Economics
Pages: 4455-4474
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.964829
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964829
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4455-4474
Template-Type: ReDIF-Article 1.0
Author-Name: Nan Jiang
Author-X-Name-First: Nan
Author-X-Name-Last: Jiang
Author-Name: Gail Pacheco
Author-X-Name-First: Gail
Author-X-Name-Last: Pacheco
Title: Demand in New Zealand hospitals: expect the unexpected?
Abstract:
The health care sector in New Zealand has undergone substantial structural
reform since 1983 and stands out relative to other OECD countries, with
relatively low per capita health expenditure and a high share of public
funding. Efficient allocation of resources in this public dominant health
system is therefore paramount. This article uses a national database of
hospital admissions to predict hospital demand. We find lagged information
on patient demand imperative in formulating an easy to implement approach
for predictive purposes. Contrasting predicted with actual demand, we
construct an indicator of volatility in unexpected patient demand (at both
the hospital and the disease chapter level) and assess its role with
regard to patient outcomes. There is consistent evidence that when actual
patient numbers exceed predicted, patients stay in hospital significantly
longer and are more likely to have an acute readmission.
Journal: Applied Economics
Pages: 4475-4489
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.964830
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964830
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4475-4489
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Garmann
Author-X-Name-First: Sebastian
Author-X-Name-Last: Garmann
Title: The causal effect of coalition governments on fiscal policies: evidence from a Regression Kink Design
Abstract:
Proportional election systems are widespread across countries and often
lead to coalition governments. This creates interest in how the form of
government (single-party or coalition governments) causally influences
fiscal policies. It is difficult to estimate this causal effect
empirically because the form of government is not randomly assigned to
political units. I overcome this problem by using a Regression Kink Design
which exploits that there is a slope change in the treatment probability
at the 50% vote share of the strongest party. This method is applied to a
large panel data set of German local governments. I find that contrary to
the theoretical prediction, coalition governments significantly decrease
expenditures.
Journal: Applied Economics
Pages: 4490-4507
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.964831
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964831
File-Format: text/html
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4490-4507
Template-Type: ReDIF-Article 1.0
Author-Name: Petros Messis
Author-X-Name-First: Petros
Author-X-Name-Last: Messis
Author-Name: Achilleas Zapranis
Author-X-Name-First: Achilleas
Author-X-Name-Last: Zapranis
Title: Asset pricing with time-varying betas for stocks traded on S&P 500
Abstract:
This study uses a novel approach for capturing time variation in betas
whose pattern is treated as a function of market returns. A two-factor
model (TFM) is constructed using estimated coefficients of a nonlinear
regression. The model is tested against the CAPM and the Fama and French
three-factor model in the context of time series regressions. The used
stocks are traded on S&P 500. The period spans from 1993 to 2011. The time
series regression results depict the superiority of the TFM in explaining
portfolio returns including momentum ones. We also provide evidence that
the particular portfolios employed at the construction of the new model
accommodate different fundamental characteristics and different risk
levels.
Journal: Applied Economics
Pages: 4508-4518
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.964833
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4508-4518
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: James E. Payne
Author-X-Name-First: James E.
Author-X-Name-Last: Payne
Title: The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries
Abstract:
This study extends the empirical literature on the determinants of
renewable energy consumption in the case of 25 OECD countries for the
period 1980-2011. Preliminary analysis suggests the presence of
cross-sectional dependence within the panel data. As a result,
second-generation panel unit root tests of Smith et al.
(2004) and Pesaran (2007) are undertaken to find the respective variables
that are integrated of order one. Panel cointegration and error correction
modelling reveal that a long-run relationship exists between renewable
energy consumption per capita, real GDP per capita, carbon dioxide
emissions per capita and real oil prices. The long-run elasticity
estimates are positive and statistically significant for real GDP per
capita, carbon dioxide emissions per capita and real oil prices. The panel
error correction model shows that a feedback relationship exists among the
variables.
Journal: Applied Economics
Pages: 4519-4525
Issue: 36
Volume: 46
Year: 2014
Month: 12
X-DOI: 10.1080/00036846.2014.964834
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964834
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Handle: RePEc:taf:applec:v:46:y:2014:i:36:p:4519-4525
Template-Type: ReDIF-Article 1.0
Author-Name: Cara M. Marshall
Author-X-Name-First: Cara M.
Author-X-Name-Last: Marshall
Title: Isolating the systematic and unsystematic components of a single stock's (or portfolio's) standard deviation
Abstract:
This article revisits the roots of modern portfolio theory. Instead of
isolating the systematic component of risk by recasting the risk in terms
of a stock's beta coefficient, I decompose the SD directly into its
systematic and unsystematic components. From this decomposed SD, an
'adjusted capital market line (CML)' can be derived. It is easily shown
that the adjusted CML is equivalent to Sharpe's security market line
(SML). I evaluate the effectiveness of these alternative measures of
systematic and unsystematic risk using empirical data and find that beta
often deviates from my systematic risk measure and, in general, tends to
overestimate a portfolio's risk. This alternative way of looking at
systematic and unsystematic risk offers easily accessible insights into
the very nature of risk. Implications include reducing the computational
complexities in calculating the relevant portion of a portfolio's
volatility, facilitating sophisticated dispersion trades, estimating
risk-adjusted returns and improving risk-adjusted performance measurement.
This article offers new ideas that may influence the teaching of economics
and finance.
Journal: Applied Economics
Pages: 1-11
Issue: 1
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.959652
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959652
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Template-Type: ReDIF-Article 1.0
Author-Name: Jin Guo
Author-X-Name-First: Jin
Author-X-Name-Last: Guo
Title: Causal relationship between stock returns and real economic growth in the pre- and post-crisis period: evidence from China
Abstract:
This article empirically examines the causality in mean and variance
between stock returns and real economic growth in China before and after
the outbreak of US subprime crisis. Using a nonuniform weighting
cross-correlation approach and the multivariate generalized autoregressive
conditional heteroscedasticity model, we found no causality in mean or
variance between China's stock returns and real economic growth for the
period before the subprime crisis. Interestingly, however, in the period
after the crisis, we detected unidirectional causality in mean from real
economic growth to stock returns and unidirectional causality in variance
from stock returns to real economic growth. These new findings imply that
the linkage between China's stock market and its real economy has become
stronger in the post-crisis period. The implication of our results is that
Chinese policymakers should continue the deregulation and improve the
efficiency of the stock market to sustain high economic growth rate in the
future.
Journal: Applied Economics
Pages: 12-31
Issue: 1
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.959653
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959653
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Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:12-31
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Tsung-Pao Wu
Author-X-Name-First: Tsung-Pao
Author-X-Name-Last: Wu
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Are house prices in South Africa really nonstationary? Evidence from SPSM-based panel KSS test with a Fourier function
Abstract:
This study applies the sequential panel selection method (SPSM) to
investigate the time-series properties of provincial house prices for
entire, large, medium and small middle-segments of South Africa. Quarterly
time-series data were collected from nine provinces in South Africa for
different house-size categories over the period of 1978.Q1 to 2012.Q4.
Whereas other panel-based unit-root tests are joint tests of a unit root
for all members of a panel and are incapable of determining the mix of
integrated of order zero (I(0)) series and integrated of
order one (I(1)) series in a panel setting, the SPSM
proposed by Chortareas and Kapetanios (2009) can clearly identify how many
and which series in the panel are stationary processes by classifying a
whole panel into a group of stationary and nonstationary series. The
empirical results from several panel-based, as well as standard pure
time-series, unit-root tests, indicate that house prices for the nine
provinces studied here are either stationary or nonstationary. However,
results from the SPSM using the panel version of the Kapetanios et
al. (KSS, 2003) test with a Fourier function unequivocally
indicate that house prices are stationary for the nine provinces under
study. Our test results have important economic and policy implications
for South Africa.
Journal: Applied Economics
Pages: 32-53
Issue: 1
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.959657
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959657
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Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:32-53
Template-Type: ReDIF-Article 1.0
Author-Name: Riza Emekter
Author-X-Name-First: Riza
Author-X-Name-Last: Emekter
Author-Name: Yanbin Tu
Author-X-Name-First: Yanbin
Author-X-Name-Last: Tu
Author-Name: Benjamas Jirasakuldech
Author-X-Name-First: Benjamas
Author-X-Name-Last: Jirasakuldech
Author-Name: Min Lu
Author-X-Name-First: Min
Author-X-Name-Last: Lu
Title: Evaluating credit risk and loan performance in online Peer-to-Peer (P2P) lending
Abstract:
Online Peer-to-Peer (P2P) lending has emerged recently. This micro loan
market could offer certain benefits to both borrowers and lenders. Using
data from the Lending Club, which is one of the popular online P2P lending
houses, this article explores the P2P loan characteristics, evaluates
their credit risk and measures loan performances. We find that credit
grade, debt-to-income ratio, FICO score and revolving line utilization
play an important role in loan defaults. Loans with lower credit grade and
longer duration are associated with high mortality rate. The result is
consistent with the Cox Proportional Hazard test which suggests that the
hazard rate or the likelihood of the loan default increases with the
credit risk of the borrowers. Finally, we find that higher interest rates
charged on the high-risk borrowers are not enough to compensate for higher
probability of the loan default. The Lending Club must find ways to
attract high FICO score and high-income borrowers in order to sustain
their businesses.
Journal: Applied Economics
Pages: 54-70
Issue: 1
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.962222
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962222
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Template-Type: ReDIF-Article 1.0
Author-Name: Maha Khalifa
Author-X-Name-First: Maha
Author-X-Name-Last: Khalifa
Author-Name: Hakim Ben Othman
Author-X-Name-First: Hakim
Author-X-Name-Last: Ben Othman
Title: The effect of conservatism on cost of capital: MENA evidence
Abstract:
The purpose of this article is to investigate the economic consequences of
accounting conservatism in the Middle Eastern and North African (MENA)
region. In particular, motivated by the lack of such studies in the
context of emerging countries, we empirically examine the effect of
conditional conservatism on firms' cost of equity capital. Using a sample
of firms pertaining to 13 MENA countries during the period 2004-2007, we
conduct three sets of tests. First, we assess the existence of
conservatism in our sample following the model of Basu (1997). Second, we
examine the association between conservatism and cost of equity capital.
Third, we test the effect of two disaggregated measures of conservatism -
conservatism with respect to bad news (BNEWS) and conservatism with
respect to good news (GNEWS) on the cost of equity. Results suggest that,
overall firms in MENA region adopt conservative reporting. Furthermore, as
predicted we find a negative association between conditional conservatism
and the cost of equity capital. This evidence is robust to time series
changes of variables and cross-country differences. The results also
report a negative association between the two disaggregated measures of
conservatism and the cost of equity capital. Our article gives additional
light on the benefits of accounting conservatism.
Journal: Applied Economics
Pages: 71-87
Issue: 1
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.962223
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962223
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Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:71-87
Template-Type: ReDIF-Article 1.0
Author-Name: Jos頌uis Miralles-Quir
Author-X-Name-First: Jos頌uis
Author-X-Name-Last: Miralles-Quir
Author-Name: Mar𨁤el Mar Miralles-Quir
Author-X-Name-First: Mar𨁤el Mar
Author-X-Name-Last: Miralles-Quir
Author-Name: Julio Daza-Izquierdo
Author-X-Name-First: Julio
Author-X-Name-Last: Daza-Izquierdo
Title: Intraday patterns and trading strategies in the Spanish stock market
Abstract:
Different rating and investment companies have recently pointed out
Spain's brightening growth outlook, which has energized the Spanish stock
market. By anticipating greater interest in the behaviour of the Spanish
stock market, we show that the best trading strategy is that in which the
investor enters long or short after the opening of the New York Stock
Exchange (NYSE) till the end of the trading day at 17:30. This strategy
should be complemented with that of entering long or short from the
opening of the trading day till the closing price before the opening of
the NYSE in no-coincidence phases.
Journal: Applied Economics
Pages: 88-99
Issue: 1
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.962224
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962224
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Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:88-99
Template-Type: ReDIF-Article 1.0
Author-Name: Hem C. Basnet
Author-X-Name-First: Hem C.
Author-X-Name-Last: Basnet
Author-Name: Subhash C. Sharma
Author-X-Name-First: Subhash C.
Author-X-Name-Last: Sharma
Author-Name: Puneet Vatsa
Author-X-Name-First: Puneet
Author-X-Name-Last: Vatsa
Title: Monetary policy synchronization in the ASEAN-5 region: an exchange rate perspective
Abstract:
In light of the long-standing vision of economic and monetary integration
in the ASEAN (Association of Southeast Asian Nations) region and the
importance of coordinating monetary policies to achieve it, the objective
of this article is to assess the monetary policy synchronization among the
founding members of the ASEAN, that is, Indonesia, Malaysia, the
Philippines, Singapore and Thailand. Due to the importance of exchange
rate movements to monetary policies, we approach this issue from a
currency exchange rate perspective. Specifically, multivariate trend-cycle
decomposition is employed to investigate common trends and common cycles
among the exchange rates of these countries during the period 1976-2012.
Our analysis reveals that the real exchange rates of Malaysia, the
Philippines, Singapore and Thailand share common cycles in the short term
and have common trends in the long term, but the Indonesian currency does
not share these relationships. Thus, our results augur well for the
synchronization of monetary policies among Malaysia, the Philippines,
Singapore and Thailand. In contrast, the relatively turbulent dynamics of
the Indonesian rupiah evident in frequent bouts of stark depreciation
separated by periods of steady depreciation over the past three decades
raise questions regarding the readiness of Indonesia for participating in
a monetary alliance with the ASEAN-4 nations.
Journal: Applied Economics
Pages: 100-112
Issue: 1
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.962228
File-URL: http://hdl.handle.net/10.1080/00036846.2014.962228
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Handle: RePEc:taf:applec:v:47:y:2015:i:1:p:100-112
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Mohammad Arzaghi
Author-X-Name-First: Mohammad
Author-X-Name-Last: Arzaghi
Author-Name: Ilker Kaya
Author-X-Name-First: Ilker
Author-X-Name-Last: Kaya
Title: On the accuracy of Blue Chip forecasts of interest rates and country risk premiums
Abstract:
We examine the accuracy of Blue Chip forecasts of short- and long-term
interest rates and country risk premiums for the Eurozone and six other
industrial countries for 1999-2008. In so doing, we utilize comparable
random walk forecasts as benchmarks. Consistent with the efficient market
hypothesis, the long-term interest rate forecasts fail to outperform the
random walk. Our findings on the accuracy of short-term interest rate
forecasts are, however, mixed. Further results reveal that Blue Chip is
more (less) accurate in predicting country risk premiums associated with
short-term (long-term) interest rates. Such evidence is reasonable since
the short-term country risk premiums contain only the perceived default
risk, while the long-term risk premiums, in addition, can contain the
perceived inflation and exchange rate differentials.
Journal: Applied Economics
Pages: 113-122
Issue: 2
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.959656
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959656
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Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:113-122
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Noton
Author-X-Name-First: Carlos
Author-X-Name-Last: Noton
Title: On the size of home bias
Abstract:
Home bias in consumption refers to consumers strongly preferring domestic
over foreign products. However, if the products were to be differentiated,
would there then be a taste for country of origin? If this were the case,
what would be the market shares if consumers were to only value prices and
characteristics and not the brand's nationality? Using a structural
demand, we account for home bias in the European car market and compute
the counterfactual market shares in the absence of home bias. We find that
home-biased preferences explain more than half of the market shares of
domestic car manufacturers in their domestic markets, limiting the role of
trade frictions.
Journal: Applied Economics
Pages: 123-128
Issue: 2
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.964832
File-URL: http://hdl.handle.net/10.1080/00036846.2014.964832
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Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:123-128
Template-Type: ReDIF-Article 1.0
Author-Name: Gianfranco Gianfelice
Author-X-Name-First: Gianfranco
Author-X-Name-Last: Gianfelice
Author-Name: Giuseppe Marotta
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Marotta
Author-Name: Costanza Torricelli
Author-X-Name-First: Costanza
Author-X-Name-Last: Torricelli
Title: A liquidity risk index as a regulatory tool for systemically important banks? An empirical assessment across two financial crises
Abstract:
We provide an empirical assessment of the suggestion, based on Severo
(2012), to use a systemic liquidity risk index (SLRI) for estimating
liquidity premia that could be charged on large banks as a compensation
for the implicit liquidity support obtained from public authorities
(Blancher et al., 2013). To this end we compute, over the
period January 2004-December 2012, a parsimonious and fully documented
SLRI. We also investigate its statistical significance in explaining the
level and variability of stock returns for a group of large international
banks across the subprime and the Eurozone sovereign debt crises. Main
findings are two: our more parsimonious SLRI is close to Severo's but
provides a stronger signal of liquidity stress and recovery episodes; we
consistently fail to detect, within and across the two crises, a stable
group of banks among the global systemically important ones listed by the
Financial Stability Board.
Journal: Applied Economics
Pages: 129-147
Issue: 2
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.967379
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967379
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Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:129-147
Template-Type: ReDIF-Article 1.0
Author-Name: Jason Barr
Author-X-Name-First: Jason
Author-X-Name-Last: Barr
Author-Name: Bruce Mizrach
Author-X-Name-First: Bruce
Author-X-Name-Last: Mizrach
Author-Name: Kusum Mundra
Author-X-Name-First: Kusum
Author-X-Name-Last: Mundra
Title: Skyscraper height and the business cycle: separating myth from reality
Abstract:
This article is the first to rigorously test how skyscraper height and
output co-move. Because builders can use their buildings for nonrational
or nonpecuniary gains, it is widely believed that height competition
occurs near the business cycle peaks. This would suggest that extreme
building height is a leading indicator of GDP, since the tallest buildings
are likely to be completed at or near the peak of a cycle. To test these
claims, first we look at both the announcement and the completion dates
for record-breaking buildings and find there is very little correlation
with the business cycle. Second, cointegration and Granger causality tests
show that while height and output are cointegrated, height does not
Granger cause output. These results are robust for the United States,
Canada, China and Hong Kong.
Journal: Applied Economics
Pages: 148-160
Issue: 2
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.967380
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967380
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Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:148-160
Template-Type: ReDIF-Article 1.0
Author-Name: Joaquim Murillo
Author-X-Name-First: Joaquim
Author-X-Name-Last: Murillo
Author-Name: Javier Roman𓐊Author-X-Name-First: Javier
Author-X-Name-Last: Roman𓐊Author-Name: Jordi Suri
Author-X-Name-First: Jordi
Author-X-Name-Last: Suri
Title: The Business Excellence Attraction Composite Index (BEACI) in small areas. Design and application to the municipalities of the Barcelona province
Abstract:
The location of economic activity, in general, and the ones of business
excellence (high-tech or knowledge-intensive businesses that have a low
environmental impact), in particular, is not dependent on one single
factor, but rather on a series of economic, geographical, social and
political variables. The aim of this article is to design a composite
index for assessing the capacity to attract this kind of economic activity
for small areas. As a case study, we have calculated this index for 26 of
the main municipalities in the province of Barcelona (Spain).
Journal: Applied Economics
Pages: 161-179
Issue: 2
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.967381
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967381
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Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:161-179
Template-Type: ReDIF-Article 1.0
Author-Name: Denise Doiron
Author-X-Name-First: Denise
Author-X-Name-Last: Doiron
Author-Name: Denzil G. Fiebig
Author-X-Name-First: Denzil G.
Author-X-Name-Last: Fiebig
Author-Name: Meliyanni Johar
Author-X-Name-First: Meliyanni
Author-X-Name-Last: Johar
Author-Name: Agne Suziedelyte
Author-X-Name-First: Agne
Author-X-Name-Last: Suziedelyte
Title: Does self-assessed health measure health?
Abstract:
Despite concerns about reporting biases and interpretation, self-assessed
health (SAH) remains the measure of health most used by researchers, in
part reflecting its ease of collection and in part the observed
correlation between SAH and objective measures of health. Using a unique
Australian data set, which consists of survey data linked to
administrative individual medical records, we present empirical evidence
demonstrating that SAH indeed predicts future health, as measured by
hospitalizations, out-of-hospital medical services and prescription drugs.
Our large sample size allows very disaggregate analysis and we find that
SAH predicts more serious, chronic illnesses better than less serious
illnesses. Finally, we compare the predictive power of SAH relative to
administrative data and an extensive set of self-reported health measures;
SAH does not add to the predictive power of future utilization when the
administrative data is included and improves prediction only marginally
when the extensive survey-based health measures are included. Clearly
there is value in the more extensive survey and administrative health data
as well as greater cost of collection.
Journal: Applied Economics
Pages: 180-194
Issue: 2
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.967382
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967382
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Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:180-194
Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore Di Falco
Author-X-Name-First: Salvatore
Author-X-Name-Last: Di Falco
Author-Name: Erwin Bulte
Author-X-Name-First: Erwin
Author-X-Name-Last: Bulte
Title: Does social capital affect investment in human capital? Family ties and schooling decisions
Abstract:
We analyse whether traditional sharing norms within kinship networks
affect education decisions of poor black households in KwaZulu-Natal.
Theory predicts that the size of the kinship network ambiguously impacts
on the incentive to invest in human capital (due to opposing 'empathy' and
'free-rider' effects). Our empirical analysis, based on a range of
different estimators, suggests the latter effect dominates: forced
solidarity within the network discourages investments in human capital.
Journal: Applied Economics
Pages: 195-205
Issue: 2
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.967383
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967383
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Handle: RePEc:taf:applec:v:47:y:2015:i:2:p:195-205
Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Patrick T. Kanda
Author-X-Name-First: Patrick T.
Author-X-Name-Last: Kanda
Author-Name: Mampho P. Modise
Author-X-Name-First: Mampho P.
Author-X-Name-Last: Modise
Author-Name: Alessia Paccagnini
Author-X-Name-First: Alessia
Author-X-Name-Last: Paccagnini
Title: DSGE model-based forecasting of modelled and nonmodelled inflation variables in South Africa
Abstract:
Inflation forecasts are a key ingredient for monetary policy-making -
especially in an inflation targeting country such as South Africa.
Generally, a typical Dynamic Stochastic General Equilibrium (DSGE) only
includes a core set of variables. As such, other variables, for example
alternative measures of inflation that might be of interest to
policy-makers, do not feature in the model. Given this, we implement a
closed-economy New Keynesian DSGE model-based procedure which includes
variables that do not explicitly appear in the model. We estimate such a
model using an in-sample covering 1971Q2 to 1999Q4 and generate recursive
forecasts over 2000Q1 to 2011Q4. The hybrid DSGE performs extremely well
in forecasting inflation variables (both core and nonmodelled) in
comparison with forecasts reported by other models such as AR(1). In
addition, based on ex-ante forecasts over the period
2012Q1-2013Q4, we find that the DSGE model performs better than the AR(1)
counterpart in forecasting actual GDP deflator inflation.
Journal: Applied Economics
Pages: 207-221
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.959707
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959707
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Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:207-221
Template-Type: ReDIF-Article 1.0
Author-Name: Gail Pacheco
Author-X-Name-First: Gail
Author-X-Name-Last: Pacheco
Author-Name: Barrett Owen
Author-X-Name-First: Barrett
Author-X-Name-Last: Owen
Title: Moving through the political participation hierarchy: a focus on personal values
Abstract:
This study empirically explores the determinants of political
participation. Using data from the European Social Survey, we investigate
the relationship between political participation and personal values,
using the Schwartz (1992) values inventory. A political participation
hierarchy is theorized, and activities are categorized into four levels of
participation (none, weak, medium and strong), based on the cost of
participating and how unconventional the activity is. Empirical analysis
points to individuals who are more open to change and more
self-transcendent, being more likely to participate. Sub-sample analysis,
contrasting East and West Europe, suggests that the role for personal
values is more subdued in the East, with respect to moving individuals
from not participating to at least voting. Furthermore, the use of a
generalized ordered logit model in this study illustrates the complex
nature of many of the determinants of political participation. In
particular, we find that the influence of the majority of individual
characteristics is not monotonic in nature, as you move up through the
political participation hierarchy. These findings are important for
researchers and policy-makers who may be interested in understanding
determinants of and/or enhancing the level of political participation in
an economy.
Journal: Applied Economics
Pages: 222-238
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.967384
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967384
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Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:222-238
Template-Type: ReDIF-Article 1.0
Author-Name: Mar𨁂el鮠Lozano
Author-X-Name-First: Mar𨁂el鮠
Author-X-Name-Last: Lozano
Author-Name: Simone Caltabiano
Author-X-Name-First: Simone
Author-X-Name-Last: Caltabiano
Title: Cross institutional cash and dividend policies: focusing on Brazilian firms
Abstract:
This article analyses the determinants of cash holding and dividends and
the relation existing between them in the institutional framework of
Brazil, an emerging market on the world scenario. It also presents
specific cultural and institutional characteristics. Through the panel
data methodology, we show how peculiar the behaviour of Brazilian firms
is, surprisingly quite different from the traditional theories and
stereotypes. It was found that they have lower cash holdings and pay
higher dividends compared to the UK market. In addition, analysis of the
relation between these two policies showed a positive relation, together
with other closely related items such as the relevant effect of
profitability and investment opportunities. All this leads us to confirm
the importance of the institutional framework in the financial decisions
taken in the Brazilian market.
Journal: Applied Economics
Pages: 239-254
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.967516
File-URL: http://hdl.handle.net/10.1080/00036846.2014.967516
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Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:239-254
Template-Type: ReDIF-Article 1.0
Author-Name: Ky-Hyang Yuhn
Author-X-Name-First: Ky-Hyang
Author-X-Name-Last: Yuhn
Author-Name: Sang Bong Kim
Author-X-Name-First: Sang Bong
Author-X-Name-Last: Kim
Author-Name: Joo Ha Nam
Author-X-Name-First: Joo Ha
Author-X-Name-Last: Nam
Title: Bubbles and the Weibull distribution: was there an explosive bubble in US stock prices before the global economic crisis?
Abstract:
Existing studies on bubbles have been mainly concerned with investigating
the stationarity properties of stock prices and market fundamentals. We
develop a new method of testing for bubbles that relates the bubble
component of stock prices to the probability of bursting in the context of
the Weibull distribution. There were several eruptions and subsequent
collapses of seeming bubbles over the past three decades: 1987 (Black
Monday), 2000 (information technology (IT) boom) and 2007 (housing market
boom). Using US monthly data for the S&P 500 and NASDAQ series, we have
found that the S&P 500 series contained an explosive bubble only during
the boom of the housing market that occurred before the 2007 global
economic crisis, and the NASDAQ market contained an explosive bubble
during the surge of stock prices peaking in 1987 and 2007, although our
stationarity tests fail to detect the bubbles. No bubble was found in both
the S&P and NASDAQ series during the 2000 IT boom. Our evidence
corroborates the criticism that the traditional unit root and
cointegration tests may not be able to detect some important class of
bubbles.
Journal: Applied Economics
Pages: 255-271
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.969824
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969824
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Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:255-271
Template-Type: ReDIF-Article 1.0
Author-Name: Prem G. Mathew
Author-X-Name-First: Prem G.
Author-X-Name-Last: Mathew
Author-Name: H. Semih Yildirim
Author-X-Name-First: H. Semih
Author-X-Name-Last: Yildirim
Title: Does director affiliation lead to analyst bias?
Abstract:
This study examines the ability of security analysts to provide objective
earnings forecasts for firms with which the analyst's brokerage firm has a
director affiliation. The affiliation that we examine is where the
brokerage firm has, on its board of directors, a director or an upper
management individual from the firm which an analyst at the brokerage firm
provides coverage. We find that affiliated analysts tend to provide
earnings forecasts that are insignificantly different from unaffiliated
analysts in terms of accuracy. However, we also find that forecasts
provided by affiliated analysts tend to be significantly more pessimistic
than those provided by their unaffiliated counterparts. This pessimistic
bias in their earnings forecast will more easily allow the covered firm to
beat earnings expectations when earnings are realized. We find that this
bias surfaced after the Global Settlement decision, an enforcement
agreement between large investment banks and the Securities and Exchange
Commission (SEC) regarding issues surrounding conflicts of interest.
Journal: Applied Economics
Pages: 272-287
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.969825
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969825
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Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:272-287
Template-Type: ReDIF-Article 1.0
Author-Name: J. Sarmiento-Sabogal
Author-X-Name-First: J.
Author-X-Name-Last: Sarmiento-Sabogal
Author-Name: M. Sadeghi
Author-X-Name-First: M.
Author-X-Name-Last: Sadeghi
Title: Estimating the cost of equity for private firms using accounting fundamentals
Abstract:
Finance literature suggests the use of the Accounting Beta (BACC) as a
proxy for the Capital Asset Pricing Model (CAPM) market beta to estimate
the cost of equity capital when the stock price is not available. Previous
researchers have aimed to achieve this objective by determining the
correlation between accounting variables and the market beta. However, the
magnitude of the resulting error in this correlation has remained unknown.
The current study is an attempt to test the performance of the BACC as a
proxy measure for the market risk and to examine the extent of the
statistical error in the correlation between these two measures. Our
findings indicate that BACC overestimates the market beta by between 20%
and 50%. Applying some corrective measures, such as operational earnings
scaled by equity, may lessen this difference to a range of 22%-25%;
however, it does not eliminate the error. Our output also suggests that
the BACC might be biased when used to assess the risk of small firms.
Journal: Applied Economics
Pages: 288-301
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.969826
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969826
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Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:288-301
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Cimini
Author-X-Name-First: Riccardo
Author-X-Name-Last: Cimini
Title: How has the financial crisis affected earnings management? A European study
Abstract:
The article aims to investigate whether and how in the European Union
(EU), the burst of the 2008 financial crisis affected misrepresentation of
financial information due to earnings management. By analysing a sample of
11 844 firm-year observations listed in the EU over the period 2006-2012,
an event study methodology allows us to calculate and compare
country-by-country abnormal accruals over the estimation period and over
the event period. Our findings validate our research hypothesis and
suggest a decrease of misrepresentation in the large majority of the
European countries after the burst of the financial crisis. The results
take part in the debate in the accounting literature about the change of
earnings management over a financial crisis and have several implications
for standard setters and regulators that could learn how the common
incentives of entities to attract potential investors during a crisis
could lead them to provide a high-quality financial reporting.
Journal: Applied Economics
Pages: 302-317
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.969828
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969828
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Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:302-317
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Mattana
Author-X-Name-First: Paolo
Author-X-Name-Last: Mattana
Author-Name: Filippo Petroni
Author-X-Name-First: Filippo
Author-X-Name-Last: Petroni
Author-Name: Stefania Patrizia Sonia Rossi
Author-X-Name-First: Stefania Patrizia Sonia
Author-X-Name-Last: Rossi
Title: A test for the too-big-to-fail hypothesis for European banks during the financial crisis
Abstract:
Motivated by the theoretical prediction of the opportunistic behaviour of
large banks that face expected public intervention, we test a
full and a partial form of the
too-big-to-fail (TBTF) hypothesis. The full form of the hypothesis implies
the increase in the risk undertakings and profitability
of banks that exceed a certain dimension; the partial form of the
hypothesis implies only an augmented risk appetite of large banks compared
to their smaller counterparts. The examined area is the European banking
industry, whose behaviour is observed over the first wave of the present
financial crisis (2007/09). The estimation of a quadratic fit that links
change in a bank's credit risk profile and profitability retention rates
with a bank's size suggests the existence of a partial
form of the TBTF hypothesis. However, a more precise, local rolling
windows estimation of the size sensitivities reveals that large banks -
those whose liabilities exceed approximately 2% of the country of origin's
GDP (15% of our sample) - show an increase in credit risk profile and a
superior capability of retaining higher ROA scores,
vis-୶is their smaller counterparts. With the caveats of
our investigation, we interpret these results as evidence of a
full form of the TBTF hypothesis.
Journal: Applied Economics
Pages: 319-332
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.959654
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959654
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:319-332
Template-Type: ReDIF-Article 1.0
Author-Name: Gisung Moon
Author-X-Name-First: Gisung
Author-X-Name-Last: Moon
Author-Name: Hongbok Lee
Author-X-Name-First: Hongbok
Author-X-Name-Last: Lee
Author-Name: Doug Waggle
Author-X-Name-First: Doug
Author-X-Name-Last: Waggle
Title: The effect of debt capacity on the long-term stock returns of debt-free firms
Abstract:
This article examines the long-term stock market performance of debt-free
firms with high and low levels of debt capacity to see whether they are
different. We use Fama and French's (1993) three-factor and Carhart's
(1997) four-factor models to examine the subsequent 1, 2, 3, 4 and 5-year
stock returns of firms that stayed debt free for 3- and 5-year periods. We
measure debt capacity as the expected asset liquidation value of a firm,
which is proxied by the firm-level tangibility measure defined by Berger,
Ofek, and Swary (1996). We find that regardless of the level of debt
capacity, zero-debt firms generate positive abnormal returns in the long
run after controlling for key risk factors. We also find support for the
notion that preserving debt capacity in the form of higher tangibility
reinforces the positive abnormal returns over and above the effect of a
zero-leverage policy.
Journal: Applied Economics
Pages: 333-345
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.959655
File-URL: http://hdl.handle.net/10.1080/00036846.2014.959655
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:333-345
Template-Type: ReDIF-Article 1.0
Author-Name: Stephanie Parsons
Author-X-Name-First: Stephanie
Author-X-Name-Last: Parsons
Author-Name: Nicholas Rohde
Author-X-Name-First: Nicholas
Author-X-Name-Last: Rohde
Title: The hot hand fallacy re-examined: new evidence from the English Premier League
Abstract:
Previous studies have illustrated human misperceptions of randomness and
resultant suboptimal decision-making with reference to the 'hot hand' or
momentum effect in sport, the notion of serial dependency between
outcomes. However, issues of omitted variables bias have plagued many due
to a reliance on nonparametric techniques or basic regression models. This
article examines across-game and within-game momentum in the English
Premier League (EPL) football competition using fixed effects regressions
to control for time-invariant heterogeneity in conjunction with
traditional nonparametric techniques. Although the results show evidence
of performance reversal following winning streaks, no such evidence is
found for streaks of draws or losses or in goal-scoring performance within
games. This suggests that momentum is better suited as a post hoc label of
performance than a robust causal phenomenon.
Journal: Applied Economics
Pages: 346-357
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.969830
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969830
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:346-357
Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kang
Author-X-Name-First: Minjung
Author-X-Name-Last: Kang
Author-Name: Jin Wook Kim
Author-X-Name-First: Jin Wook
Author-X-Name-Last: Kim
Author-Name: Ho-Young Lee
Author-X-Name-First: Ho-Young
Author-X-Name-Last: Lee
Author-Name: Myung-Gun Lee
Author-X-Name-First: Myung-Gun
Author-X-Name-Last: Lee
Title: Financial statement comparability and audit efficiency: evidence from South Korea
Abstract:
In this study, we examine the effect of financial statement comparability
on audit hours, which we use as a proxy for audit efficiency. We examine
the hours worked by auditors in completing 2322 audits in Korea between
2006 and 2010. Audit efficiency can be determined by the total audit
effort required to achieve a successful audit. Using a sample consisting
of firms maintaining a certain level of audit quality, we investigate
whether financial statement comparability reduces audit hours. We find
that comparability is negatively associated with audit hours. In addition,
we find that the effect of comparability on audit hours is attenuated for
firms that are 'highly followed' by financial analysts. This study
contributes to the literature by proposing a possible way to improve audit
efficiency from a unique perspective. While prior studies show that a
client's inherent risk and control risk lower audit efficiency, the
results of this study show that comparability between financial statements
facilitates audit efficiency. Improvements in audit efficiency reduce the
opportunity costs associated with audit effort and thereby enable auditors
to spend more time and effort focusing on high-risk engagements.
Comparability is one of four qualitative characteristics of accounting
information included in accounting conceptual frameworks. Despite the
importance of comparability, there is very little research on its
benefits. This study makes a unique contribution by measuring audit effort
using a large database of audit hours worked by auditors in Korean firms.
Journal: Applied Economics
Pages: 358-373
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.972543
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972543
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:358-373
Template-Type: ReDIF-Article 1.0
Author-Name: K. Khang
Author-X-Name-First: K.
Author-X-Name-Last: Khang
Author-Name: T. D. King
Author-X-Name-First: T. D.
Author-X-Name-Last: King
Title: Capital market access and corporate loan structure
Abstract:
In this article, we use a sample of 14 075 loan packages issued between
1993 and 2007 to examine if borrower access to external capital markets
influences corporate loan structure. We classify firms into three access
categories: private, unrated public and rated public. Private firms have
the lowest access, and to date, no large sample investigation of their
loans has been done in the literature. Rated public firms access the
capital markets the most. We find the level of access influences loan
structure in ways that are consistent with having greater or fewer
financing alternatives, as well as theories on information asymmetry,
agency and monitoring. In particular, loans to firms with higher levels of
access have shorter maturities, fewer loan facilities per package, and a
lower probability of being secured. We also find that a higher level of
access results in a higher incidence of single-lender loans, but among
multiple-lender loans, it leads to a larger number of lenders.
Furthermore, we find evidence that access affects financial covenants in a
nonmonotonic manner. Finally, lender type and economic conditions
influence loan structure. Our results are robust to endogeneity caused by
simultaneity of contract terms and rating.
Journal: Applied Economics
Pages: 374-397
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.972544
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972544
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:374-397
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: John Vaz
Author-X-Name-First: John
Author-X-Name-Last: Vaz
Title: Why is it so difficult to outperform the random walk? An application of the Meese-Rogoff puzzle to stock prices
Abstract:
Some economists suggest that the Meese-Rogoff puzzle is equally applicable
to the stock market, in the sense that no model of stock prices can
outperform the random walk in out-of-sample forecasting. We argue that
this is not a puzzle and that we should expect nothing, but this result if
forecasting accuracy is measured by the root mean square error (RMSE) and
similar metrics that take into account the magnitude of the forecasting
error only. We demonstrate by using two models for dividend-paying and
nondividend-paying stocks that as price volatility rises, the RMSE of the
random walk rises, but the RMSE of the model rises even more rapidly,
making it unlikely for the model to outperform the random walk.
Journal: Applied Economics
Pages: 398-407
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.972545
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972545
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:398-407
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner
Author-X-Name-First: Joachim
Author-X-Name-Last: Wagner
Title: Credit constraints and margins of import: first evidence for German manufacturing enterprises
Abstract:
This study uses tailor-made enterprise-level data for 2008-2010 from
various sources for firms from manufacturing industries to test for the
link between credit constraints, measured by a credit rating score
provided by a leading credit rating agency, and imports in Germany for the
first time. We find empirical evidence that a better credit rating score
is positively related to extensive margins of import - firms with a better
score have a higher probability to import, they import more goods and they
source from more countries of origin. The intensive margin of imports -
the share of imports in total sales - is found not to be related to credit
constraints.
Journal: Applied Economics
Pages: 415-430
Issue: 5
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.969829
File-URL: http://hdl.handle.net/10.1080/00036846.2014.969829
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Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:415-430
Template-Type: ReDIF-Article 1.0
Author-Name: Vidhura Tennekoon
Author-X-Name-First: Vidhura
Author-X-Name-Last: Tennekoon
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Title: The pot calling the kettle black? A comparison of measures of current tobacco use
Abstract:
Researchers often use the discrepancy between self-reported and
biochemically assessed active smoking status to argue that self-reported
smoking status is not reliable, ignoring the limitations of biochemically
assessed measures and treating it as the gold standard in their
comparisons. Here, we employ econometric techniques to compare the
accuracy of self-reported and biochemically assessed current tobacco use,
taking into account measurement errors with both methods. Our approach
allows estimating and comparing the sensitivity and specificity of each
measure without directly observing true smoking status. The results,
robust to several alternative specifications, suggest that there is no
clear reason to think that one measure dominates the other in accuracy.
Journal: Applied Economics
Pages: 431-448
Issue: 5
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.972546
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972546
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:431-448
Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Breuer
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Breuer
Author-Name: Thorsten Hens
Author-X-Name-First: Thorsten
Author-X-Name-Last: Hens
Author-Name: Astrid Juliane Salzmann
Author-X-Name-First: Astrid Juliane
Author-X-Name-Last: Salzmann
Author-Name: Mei Wang
Author-X-Name-First: Mei
Author-X-Name-Last: Wang
Title: On the determinants of household debt maturity choice
Abstract:
This article jointly analyses a behavioural and a cultural concept to
explain household debt portfolio choice. The behavioural approach explores
the role of time preferences on household debt maturity in a theoretical
model and a numerical analysis. We derive a positive relationship between
the long-term discount factor δ and the optimal
maturity of household loans. The cultural approach examines whether
national culture is a reasonable predictor for household debt maturity. We
show that culture is an important factor for households' borrowing
decisions and has even more predictive power than time preferences.
Countries with higher scores on the Hofstede dimension of long-term
orientation tend to have shorter household debt maturity. Time preferences
incur a primarily mediating role, because the effect of national culture
on the borrowing decision is reduced, as the long-term discount factor
δ increases.
Journal: Applied Economics
Pages: 449-465
Issue: 5
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.972547
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972547
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Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:449-465
Template-Type: ReDIF-Article 1.0
Author-Name: Jos順鬩x Sanz-Sanz
Author-X-Name-First: Jos順鬩x
Author-X-Name-Last: Sanz-Sanz
Author-Name: Mar𨁁rrazola-Vacas
Author-X-Name-First: Mar𨀍
Author-X-Name-Last: Arrazola-Vacas
Author-Name: Nuria Rueda-L
Author-X-Name-First: Nuria
Author-X-Name-Last: Rueda-L
Author-Name: Desiderio Romero-Jordᮠ
Author-X-Name-First: Desiderio
Author-X-Name-Last: Romero-Jordᮠ
Title: Reported gross income and marginal tax rates: estimation of the behavioural reactions of Spanish taxpayers
Abstract:
This article estimates, for the Spanish personal income tax, the
elasticity of reported gross income to marginal tax rates. The
identification of this elasticity has been performed using the reform
approved by Law 35/2006, which came into force in January 2007. The
elasticities obtained suggest the existence of important efficiency costs,
with significant regional differences. The average elasticity estimated
for Spain as a whole is 0.676. However, this elasticity is highly
dispersed throughout the Spanish administrative regions, which indicates
the unequal power of distortion of the tax. Thus, households whose
principal source of income is salary display an elasticity of 0.337,
compared to 0.682 for households whose main income source comes from
business or savings. Lastly, a positive correlation is also detected
between elasticity and income level: an elasticity of 3.6 is reached for
taxpayers with an annual gross income exceeding 100000€.
Journal: Applied Economics
Pages: 466-484
Issue: 5
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.972548
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972548
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:466-484
Template-Type: ReDIF-Article 1.0
Author-Name: Peyman Khezr
Author-X-Name-First: Peyman
Author-X-Name-Last: Khezr
Title: Time on the market and price change: the case of Sydney housing market
Abstract:
This article is an empirical study of characteristics related to
residential properties sold in Sydney, Australia. We use comprehensive
data on the Sydney housing market composed of 25489 observations for
properties sold in the Sydney region in 2011. We consider the fact that
both the seller of the property and the real estate agent have a common
goal: to sell the property at the highest possible price in the shortest
amount of time. The analysis is divided into two major parts. First, we
estimate a two-stage least square model to analyse which parameters affect
time on the market for a property. Second, we propose a probit model that
estimates the parameters that affect a revision in list prices. The
results contribute to the existing literature on the Australian housing
market by extending understandings about the parameters that could affect
the time on the market of properties and the revision of their list
prices.
Journal: Applied Economics
Pages: 485-498
Issue: 5
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.972549
File-URL: http://hdl.handle.net/10.1080/00036846.2014.972549
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Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:485-498
Template-Type: ReDIF-Article 1.0
Author-Name: Dieter Gerdesmeier
Author-X-Name-First: Dieter
Author-X-Name-Last: Gerdesmeier
Author-Name: Andreja Lenarčič
Author-X-Name-First: Andreja
Author-X-Name-Last: Lenarčič
Author-Name: Barbara Roffia
Author-X-Name-First: Barbara
Author-X-Name-Last: Roffia
Title: An alternative method for identifying booms and busts in the Euro area housing market
Abstract:
This article develops a model-based method to detect booms and busts in
the Euro area housing market. A model is constructed and tested, whereby
the user cost rate, a demographic variable, unemployment rate, disposable
income, debt-to-income ratio and housing stock are fundamental variables
significantly explaining house price (HP) developments. Booms/busts are
identified as episodes when the HP index exceeds the levels implied by
those economic fundamentals. Furthermore, a cross-check with boom/bust
episodes based on other methods is carried out to substantiate the
results, while the ability of the model in predicting booms/busts in real
time is also tested.
Journal: Applied Economics
Pages: 499-518
Issue: 5
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.975328
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975328
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Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:499-518
Template-Type: ReDIF-Article 1.0
Author-Name: Yuri Mansury
Author-X-Name-First: Yuri
Author-X-Name-Last: Mansury
Author-Name: Wook Sohn
Author-X-Name-First: Wook
Author-X-Name-Last: Sohn
Title: Are financial activities harmful for regional growth? Contradictory evidence from the Indonesian panel data
Abstract:
Using high-frequency panel data for Indonesian provinces, we find that
financial activities are associated with slower growth rates of
productivity and output per capita. In particular, bank credit alone
appears to inhibit growth more than the impact of credit and financial
savings combined. This result contrasts starkly with the evidence from
low-frequency panel, where the estimates suggest that bank credit promotes
faster productivity and higher growth of per capita output. The
contradictory evidence is attributable to the nonlinear growth dynamics of
the finance-output nexus, where credit inhibits growth in the short run
and promotes growth over the longer haul.
Journal: Applied Economics
Pages: 519-530
Issue: 5
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.975329
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975329
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Handle: RePEc:taf:applec:v:47:y:2015:i:5:p:519-530
Template-Type: ReDIF-Article 1.0
Author-Name: Youngho Kang
Author-X-Name-First: Youngho
Author-X-Name-Last: Kang
Title: Trade, labour market rigidity, and aggregate productivity in OECD countries
Abstract:
As the economy becomes more open to trade, aggregate productivity can
increase by driving out the least productive firms (the selection effect).
Since the selection effect reallocates resources toward the more
productive firms, this process can be hindered by rigidity in domestic
labour market institutions. Based on the selection effect by Melitz
(2003), this article empirically examines how rigidity in labour market
institutions affects the consequence of trade on aggregate productivity.
Findings from panel dynamic ordinary least square (DOLS) estimators
suggest that a high degree of labour market rigidity in an open economy
reduces Total Factor Productivity (TFP). In particular, in the case of
extremely high labour market rigidity but low foreign R&D capital stocks,
openness to trade can cause a country to experience decreasing TFP.
Journal: Applied Economics
Pages: 531-543
Issue: 6
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.975330
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975330
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Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:531-543
Template-Type: ReDIF-Article 1.0
Author-Name: Robert McNown
Author-X-Name-First: Robert
Author-X-Name-Last: McNown
Author-Name: Omar S. Aburizaizah
Author-X-Name-First: Omar S.
Author-X-Name-Last: Aburizaizah
Author-Name: Charles Howe
Author-X-Name-First: Charles
Author-X-Name-Last: Howe
Author-Name: Nathan Adkins
Author-X-Name-First: Nathan
Author-X-Name-Last: Adkins
Title: Forecasting annual water demands dominated by seasonal variations: the case of water demands in Mecca
Abstract:
Water usage in Mecca is dominated by trends and cyclical variations in the
number of foreign pilgrims visiting for the annual Hajj Pilgrimage. Time
series regressions show that the mean temperature in Mecca at the time of
the Hajj affects the number of pilgrims, inducing a long-term cyclical
pattern for this variable and therefore water usage. The cointegrating
relation between water usage, number of external pilgrims and temperature
produces long-run forecasts of Mecca water demand.
Journal: Applied Economics
Pages: 544-552
Issue: 6
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.975331
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975331
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Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:544-552
Template-Type: ReDIF-Article 1.0
Author-Name: C鳡r E. Castell
Author-X-Name-First: C鳡r E.
Author-X-Name-Last: Castell
Author-Name: Tullaya Boonsaeng
Author-X-Name-First: Tullaya
Author-X-Name-Last: Boonsaeng
Author-Name: Carlos E. Carpio
Author-X-Name-First: Carlos E.
Author-X-Name-Last: Carpio
Title: Demand system estimation in the absence of price data: an application of Stone-Lewbel price indices
Abstract:
This article evaluates the feasibility of estimating a system of demand
equations in the absence of price information using the approach developed
by Lewbel (1989). Stone-Lewbel (SL) price indices for commodity groups are
constructed using information on the budget shares and the Consumer Price
Indices (CPIs) of the goods comprising the commodity groups, which allows
for household-level prices to be recovered. This study evaluates how
susceptible are elasticities and marginal effects estimates from
traditional parametric demand systems to the CPI used in the construction
of the SL prices. To do this, three alternative regional CPIs are
considered for the construction of the SL prices: monthly, quarterly and a
constant (unity) price index. Elasticities and marginal effect estimates
are computed for eight food commodity groups using the Exact Affine Stone
Index (EASI) model as the parametric demand system and data from the
United States Consumer Expenditure Survey. The estimates proved to be
robust to the alternative regional CPIs considered in the construction of
SL price indices, even to the absence of one. Hence, the results suggest
that it is possible to accurately estimate a demand system even in the
absence of price information.
Journal: Applied Economics
Pages: 553-568
Issue: 6
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.975332
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975332
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Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:553-568
Template-Type: ReDIF-Article 1.0
Author-Name: Peter C. Dawson
Author-X-Name-First: Peter C.
Author-X-Name-Last: Dawson
Title: The capital asset pricing model in economic perspective
Abstract:
The capital asset pricing model (CAPM) is theoretically incomplete in its
demand-side focus, risk-averse investors and internally inconsistent
homogeneous beliefs; is not conclusively supported empirically; and yet it
legitimizes a notion that investors can earn higher returns by bearing
undiversifiable risk. Our article does not merely extend the CAPM with
more realistic assumptions, it completes its original framework by
including (1) risk-taking investors in the investor population, (2)
investors who can have heterogeneous expectations or beliefs - an
overlooked but required condition for the CAPM to be an internally
consistent and meaningful model of competitive financial
asset pricing under uncertainty and (3) a positive-sloped
short-run supply curve based on a reasonable interpretation of the nature
of financial asset trade. Upon a complete economic interpretation, it is
shown that the equilibrium (systematic) risk-rate of return relationship
depends on whose aggregate trading activity dominates, risk-averse or
risk-taking investors'. There is no universal, or even general, positive
relationship between systematic risk and rate of return. This has
far-reaching implications for investors and investment advisors who serve
them.
Journal: Applied Economics
Pages: 569-598
Issue: 6
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.975333
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975333
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Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:569-598
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Huck
Author-X-Name-First: Nicolas
Author-X-Name-Last: Huck
Author-Name: Komivi Afawubo
Author-X-Name-First: Komivi
Author-X-Name-Last: Afawubo
Title: Pairs trading and selection methods: is cointegration superior?
Abstract:
Pairs trading is a popular dollar-neutral trading strategy. This article,
using the components of the S&P 500 index, explores the performance of a
pairs trading system based on various pairs selection methods. Whereas
large empirical applications in the literature focus on the distance
method, this article also deals with well-known statistical and
econometric techniques such as stationarity and cointegration which make
the trading system much more demanding from a computational point of view.
Trades are initiated when stocks deviate from their equilibrium. Our
results confirm, after controlling for risk and transaction costs, that
the distance method generates insignificant excess returns. While a pairs
selection following the stationarity criterion leads to a weak
performance, this article reveals that cointegration provides a high,
stable and robust return.
Journal: Applied Economics
Pages: 599-613
Issue: 6
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.975417
File-URL: http://hdl.handle.net/10.1080/00036846.2014.975417
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Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:599-613
Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Author-Name: Terry A. Hallahan
Author-X-Name-First: Terry A.
Author-X-Name-Last: Hallahan
Title: The effectiveness of international diversification: whole markets versus sectors
Abstract:
A hedging approach is used to examine the effect of sectoral factors on
the effectiveness of international diversification. By using data covering
seven countries and various sectors, we find that international
diversification is more effective when assets from developed markets only
are used and when multiasset portfolios are used instead two-asset
portfolios. The results also reveal that international diversification
across whole markets is more effective than diversification across
sectors. These results reflect the pattern of return correlation.
Journal: Applied Economics
Pages: 614-622
Issue: 6
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.978073
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978073
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Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:614-622
Template-Type: ReDIF-Article 1.0
Author-Name: L. Martin
Author-X-Name-First: L.
Author-X-Name-Last: Martin
Author-Name: N. Omrani
Author-X-Name-First: N.
Author-X-Name-Last: Omrani
Title: An assessment of trends in technology use, innovative work practices and employees' attitudes in Europe
Abstract:
Several studies of innovative work practices show a positive link with
firm performance and employees' task involvement, organizational
commitment and citizenship behaviours. One of the recent changes faced by
firms is the introduction of Information and Communication Technologies
(ICTs). Although several empirical studies analyse the links between ICT
use, innovative work practices and firm performance, employee-level
analyses are scarce. Using data from the European Working Condition Survey
(EWCS), this article investigates the relationships between use of the
Internet and computers and positive attitudes among employees (social
support, job satisfaction, extra effort) in the European context. Our
empirical results are based on data for more than 9500 employees from 16
European countries in 2005, and more than 14000 in 2010. Among the
different effects of ICT use, based on the results for the 2005, 2010 and
the pooled 2005-2010 sample, and in a within-cohorts change analysis, we
find that Internet use is positively related to employees' job
satisfaction and extra effort. We find that computer use is not related to
employees' behaviours. We find also that most of the innovative work
practices considered are positively related to employees' positive
attitudes.
Journal: Applied Economics
Pages: 623-638
Issue: 6
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.978072
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978072
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Handle: RePEc:taf:applec:v:47:y:2015:i:6:p:623-638
Template-Type: ReDIF-Article 1.0
Author-Name: Hai Zhong
Author-X-Name-First: Hai
Author-X-Name-Last: Zhong
Title: Does a college education cause better health and health behaviours?
Abstract:
In this article, we exploit the recent higher education expansion in China
to apply a regression discontinuity method to identify the causal effects
of higher education on health and health behaviours. We do not find causal
effect of a college education on better smoking and drinking behaviours.
For our selected measures of health, we do not find causal effect of a
college education on better self-assessed health, less chance of having
illness in the past 3 months and keeping normal body weight; however, we
find that a college education could significantly reduce the probability
of having hypertension.
Journal: Applied Economics
Pages: 639-653
Issue: 7
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.978074
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978074
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Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:639-653
Template-Type: ReDIF-Article 1.0
Author-Name: Kiho Kwak
Author-X-Name-First: Kiho
Author-X-Name-Last: Kwak
Author-Name: Wonjoon Kim
Author-X-Name-First: Wonjoon
Author-X-Name-Last: Kim
Title: Productivity growth of newly industrializing economies in heterogeneous capital goods markets: the case of the Korean machinery and equipment industry
Abstract:
Although many previous studies have investigated the economic growth of
East Asian countries from the perspective of productivity growth, they
have adopted a limited focus only on the national level or on the
aggregated level and have overlooked the heterogeneity at the
disaggregated level. Furthermore, only a few studies have examined the
sources of the remarkable growth and trade performance of the Korean
machinery and equipment industry, despite its importance for sustainable
growth of national economy. Therefore, we investigated the Total Factor
Productivity Growth (TFPG) of the Korean machinery and equipment industry
and its 12 sub-sectors from 1970 to 2012 using the stochastic frontier
production approach. As a result, we found that the industry has achieved
labour input-driven TFPG largely due to technical progress. This is
contrary to the previous result that East Asia has expanded the production
frontier by capital accumulation. In contrast, in some sub-sectors, scale
effect and allocation efficiency have driven TFPG. We also found
distinctive patterns of TFPG across different sub-sectors from the
perspectives of the effect of input factors and the pattern of technical
progress. These results imply that policy makers should consider
industry-specific policy designs that incorporate the specific
characteristics of individual sub-sectors.
Journal: Applied Economics
Pages: 654-668
Issue: 7
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.978075
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978075
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Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:654-668
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Sara砍
Author-X-Name-First: Mehmet
Author-X-Name-Last: Sara砍
Author-Name: Feyyaz Zeren
Author-X-Name-First: Feyyaz
Author-X-Name-Last: Zeren
Title: The dependency of Islamic bank rates on conventional bank interest rates: further evidence from Turkey
Abstract:
The nexus between Islamic banks' returns on term deposits (participation
accounts) and conventional banks' (CBs) interest rates on term deposits is
one of the controversies with regard to Islamic finance. The obvious
correlation between two sides is considered a convergence of Islamic
banking to the conventional mode and the breach of the 'risk sharing', the
underlying principle of Islamic finance. The aim of this study is to
econometrically investigate the long-term relationship between CBs'
term-deposit rates (TDRs) and participation banks' (PBs) TDR in Turkey. We
undertake an elaborate analysis of the dependency of each PBs in Turkey on
interest rates utilizing the most recent econometric techniques including
Maki cointegration tests with multiple breaks and
frequency domain causality tests. Findings show that TDRs
of three PBs are significantly cointegrated with those of CBs, while one
is not. In addition, permanent causality is found from CBs to all PBs.
Journal: Applied Economics
Pages: 669-679
Issue: 7
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.978076
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978076
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Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:669-679
Template-Type: ReDIF-Article 1.0
Author-Name: Lenka Šťastn᠍
Author-X-Name-First: Lenka
Author-X-Name-Last: Šťastn᠍
Author-Name: Martin Gregor
Author-X-Name-First: Martin
Author-X-Name-Last: Gregor
Title: Public sector efficiency in transition and beyond: evidence from Czech local governments
Abstract:
This article provides the first comparison of public sector efficiency in
and beyond transition. We compare the comprehensive efficiency scores of
202 local governments in the Czech Republic in the transition period of
1995-1998 and the post-transition period of 2005-2008 and identify the
period-specific determinants of local government efficiency. We observe
convergence to the best practice frontier but also a growing efficiency
gap between small and large governments. In both periods, municipal size
and the main fiscal variables qualitatively affect efficiency in the same
direction and in line with the fiscal stress hypothesis. Left-wing
ideology is only robustly associated with cost inefficiency in the
transition period. The geographic distances begin to matter for efficiency
only in the post-transition period.
Journal: Applied Economics
Pages: 680-699
Issue: 7
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.978077
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978077
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Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:680-699
Template-Type: ReDIF-Article 1.0
Author-Name: Jun Xie
Author-X-Name-First: Jun
Author-X-Name-Last: Xie
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Title: Investor sentiment and the financial crisis: a sentiment-based portfolio theory perspective
Abstract:
The article proposes a portfolio model subjected to a constraint that
captures the investor's goal, with maximum estimation of expected return
that is affected by investor sentiment. And we give a solution of the
portfolio model by exploring the geometric features. Furthermore, we
discuss the relationship between investor sentiment and the financial
crisis by analysing the optimal allocation. The results show that: when
investor sentiment is low enough, the investor should reject the
investment, this condition leads the depression financial market to
prevail, then the financial crisis erupts; when investor sentiment is
modest, the financial crisis is difficult to erupt unless the decline of
investor sentiment is quick and deep; but there is a special status that
the financial crisis is caused by other factors rather than by investor
sentiment; and only improving investor sentiment cannot move away from the
financial crisis.
Journal: Applied Economics
Pages: 700-709
Issue: 7
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.978078
File-URL: http://hdl.handle.net/10.1080/00036846.2014.978078
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Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:700-709
Template-Type: ReDIF-Article 1.0
Author-Name: Sok Chul Hong
Author-X-Name-First: Sok Chul
Author-X-Name-Last: Hong
Author-Name: Jungmin Lee
Author-X-Name-First: Jungmin
Author-X-Name-Last: Lee
Title: People on the verge of death: evidence from impacts of celebrity suicides
Abstract:
We attempt to identify the population who are vulnerable to emotional
shocks by exploiting an unprecedented series of celebrity suicides in
South Korea during the last decade, including one of the most famous
actresses, as well as a former president. Our conservative estimates show
that for 5 out of 11 celebrity suicides observed, 1 celebrity suicide on
average yielded to more than 10 excessive suicides per day over a time
frame of at least 2 weeks. The results indicate that a significant number
of people are very much mentally unstable to end their life by emotional
shocks that should be irrelevant to their economic status.
Journal: Applied Economics
Pages: 710-724
Issue: 7
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.980571
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980571
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Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:710-724
Template-Type: ReDIF-Article 1.0
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Jacopo Pichelli
Author-X-Name-First: Jacopo
Author-X-Name-Last: Pichelli
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: Environmental regulation, the Obama effect and the stock market: some empirical results
Abstract:
Following the signing of the Kyoto protocol in 2005, a new wave of green
policies emerged with the intention of protecting our planet. This study
explores the effects these policies have on capital markets. In
particular, we assess how the risk and return of US industrial portfolios
react to the announcement of green policies. Event study methodology and
asset pricing models are used to that end. We document negative abnormal
returns and increase in systematic risk for the biggest polluters whereas
environmentally friendly businesses are affected to a lesser degree. An
apparent Obama effect is observed, resulting from the 2008 outcome of the
US presidential election.
Journal: Applied Economics
Pages: 725-738
Issue: 7
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.980572
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980572
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Handle: RePEc:taf:applec:v:47:y:2015:i:7:p:725-738
Template-Type: ReDIF-Article 1.0
Author-Name: John P. Weche Geluebcke
Author-X-Name-First: John P.
Author-X-Name-Last: Weche Geluebcke
Title: The impact of foreign takeovers: comparative evidence from foreign and domestic acquisitions in Germany
Abstract:
This study provides the first evidence of foreign takeover effects on the
performance of acquired firms in Germany that considers a general takeover
effect through the comparison with domestic takeovers. A propensity score
matching approach combined with a difference-in-differences (DiD)
estimator were performed with new high-quality panel data for
manufacturing enterprises, provided by German official statistics. The
results indicate a negative impact of foreign takeovers on employment and
no productivity improvements for the period 2007-2009. This evidence
contradicts existing empirical evidence for Germany which suggests
significant productivity improvements and no changes in terms of
employment. These findings are of particular interest to Germany as one of
the most important FDI inflow destinations worldwide. They contribute to
the foreign ownership performance premium literature as well as improving
the understanding of foreign acquisition consequences, a subject of utmost
topicality.
Journal: Applied Economics
Pages: 739-755
Issue: 8
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982854
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982854
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Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:739-755
Template-Type: ReDIF-Article 1.0
Author-Name: Carolina Castilla
Author-X-Name-First: Carolina
Author-X-Name-Last: Castilla
Author-Name: Timothy Haab
Author-X-Name-First: Timothy
Author-X-Name-Last: Haab
Title: Asymmetric search and prospect theory: choice experiment on consumer willingness to search in the gasoline retail market
Abstract:
We use an internet survey conducted among a representative random sample
of drivers in the State of Ohio consisting of a choice experiment designed
to examine the mechanism driving asymmetric search. The internet survey
affords us the opportunity to overcome endogeneity difficulties by
imposing exogenous price changes on gasoline consumers to examine the
decision-making process behind intended search decisions. We randomly
assigned participants to one of five price treatments (either 2.5 or 5%
above or below their reported expected price, or no change). We provide a
simple empirical model to derive testable implications under prospect
theory and use the internet survey to test them. Results indicate that
among the respondents who faced prices below their expected price, only
12% chose to search, whereas 45% searched when prices were above. Further,
we find results consistent with asymmetric search being driven by prospect
theory. The change in consumers' willingness to search is twice as large
when prices exceed expectations by 2.5% relative to when prices exceed
them by 5% suggesting that consumers derive utility of finding a good deal
evaluated relative to a reference price. We show that this result is
inconsistent with standard utility theory or consumers using alternative
reference prices.
Journal: Applied Economics
Pages: 756-778
Issue: 8
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.980573
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980573
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Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:756-778
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Michael L. Polemis
Author-X-Name-First: Michael L.
Author-X-Name-Last: Polemis
Title: The competitive conditions in the OECD manufacturing industry
Abstract:
The goal of this study was to assess the intensity of competition in the
OECD manufacturing industry by using the Panzar and Rosse index over the
period 1970-2011. For this purpose, we use the fully modified OLS method
and second-generation unit root analysis to investigate the level of
competition across two-digit manufacturing sectors. The results are robust
and consistent with similar studies, leading to the rejection of perfect
collusion and perfect competition, while providing evidence in favour of
monopolistic competition. Similarly to other empirical studies,
H-statistics are shown to be heterogeneous across
manufacturing sectors. We argue that more concentrated sectors such as
food and beverages, motor vehicles and furniture have low levels of
H-statistic being thus less competitive than other
industries (i.e. computers transportation equipment, printing and
chemicals), where the H-statistic is closer to unity.
Lastly, our analysis will be a useful policy tool to achieve structural
micro-economic goals.
Journal: Applied Economics
Pages: 779-797
Issue: 8
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.980574
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980574
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Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:779-797
Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Olaoluwa S. Yaya
Author-X-Name-First: Olaoluwa S.
Author-X-Name-Last: Yaya
Title: Do sunspot numbers cause global temperatures? Evidence from a frequency domain causality test
Abstract:
This article applies the causality test in the frequency domain, developed
by Breitung and Candelon (2006), to analyse whether sunspot numbers (used
as a partial approximation to solar irradiance) cause global temperatures,
using monthly data covering the time period 1880:1-2013:9. While standard
time domain Granger causality test fails to reject the null hypothesis
that sunspot numbers do not cause global temperatures for both full and
sub-samples (identified based on tests of structural breaks), the
frequency domain causality test detects predictability for both the
full-sample and the last sub-sample at short (2-2.6 months) and long (10.3
months and above) cycle lengths, respectively. Our results highlight the
importance of analysing causality using the frequency domain test, which,
unlike the time domain Granger causality test, allows us to decompose
causality by different time horizons, and hence, could detect
predictability at certain cycle lengths even when the time domain
causality test might fail to pick up any causality. Further, given the
widespread discussion in the literature, those results for the full-sample
causality, irrespective of whether it is in time or frequency domains,
cannot be relied upon when there are structural breaks present, and one
needs to draw inference regarding causality from the sub-samples, we can
conclude that there has been an emergence of causality running from
sunspot numbers to global temperatures only recently at cycle length of
10.3 months and above.
Journal: Applied Economics
Pages: 798-808
Issue: 8
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.980575
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980575
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Template-Type: ReDIF-Article 1.0
Author-Name: Marc Jim M. Mariano
Author-X-Name-First: Marc Jim M.
Author-X-Name-Last: Mariano
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Author-Name: Nhi H. Tran
Author-X-Name-First: Nhi H.
Author-X-Name-Last: Tran
Title: The effects of domestic rice market interventions outside business-as-usual conditions for imported rice prices
Abstract:
The Philippine government intervenes in the domestic rice market through
the imposition of import tariffs and the provision of producer and
consumer subsidies. While policymakers are aware that these programmes
come with allocative efficiency costs, they justify the programmes on the
grounds that they insulate the domestic economy from unexpected price
spikes in the international rice market. An interesting matter for policy
evaluation is to quantify the insulation benefit that the programmes
provide in circumstances of sudden severe import price spikes. To examine
this question, we undertake a dynamic computable general equilibrium (CGE)
simulation in which the Philippines is subject to an external rice price
shock. We find that the insulation benefit of the support programmes under
a 2008-like event is worth approximately 0.10% of real consumption.
However, the cost of insuring against these price spikes is significant.
We estimate the annual cost of the rice market interventions at
approximately 0.40% of real consumption.
Journal: Applied Economics
Pages: 809-832
Issue: 8
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.980576
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980576
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Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:809-832
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Hagemejer
Author-X-Name-First: Jan
Author-X-Name-Last: Hagemejer
Author-Name: Krzysztof Makarski
Author-X-Name-First: Krzysztof
Author-X-Name-Last: Makarski
Author-Name: Joanna Tyrowicz
Author-X-Name-First: Joanna
Author-X-Name-Last: Tyrowicz
Title: Unprivatizing the pension system: the case of Poland
Abstract:
In many countries, the fiscal tension associated with the global financial
crisis brings about the discussion about unprivatizing the social security
system. This article employs an Overlapping Generations model to assess
ex ante the effects of such changes to the pension reform
in Poland from 1999 as implemented in 2011 and in 2013. We simulate the
behaviour of the economy without the implemented/proposed changes and
compare it to a status quo defined by the reform from
1999. We find that the changes implemented in 2011 and in 2013 are
detrimental to welfare. The effects on capital and output are small and
depend on the selected fiscal closure. Implied effective replacement rates
are lower. These findings are robust to time inconsistency. The
shortsightedness of the governments imposes welfare costs.
Journal: Applied Economics
Pages: 833-852
Issue: 8
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.980577
File-URL: http://hdl.handle.net/10.1080/00036846.2014.980577
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Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:833-852
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Bollen
Author-X-Name-First: Bernard
Author-X-Name-Last: Bollen
Title: What should the value of lambda be in the exponentially weighted moving average volatility model?
Abstract:
Forecasting volatility is fundamental to forecasting parametric models of
value-at-risk. The exponentially weighted moving average (EWMA) volatility
model is the recommended model for forecasting volatility by the
Riskmetrics group. For monthly data, the lambda parameter of the EWMA
model is recommended to be set to 0.97. In this study, we empirically
investigate if this is the optimal value of lambda in terms of forecasting
volatility. Employing monthly realized volatility as the benchmark for
testing the value of lambda, it is found that a value of lambda of 0.97 is
far from optimal. The tests are robust to a variety of test statistics. It
is further found that the optimal value of lambda is time varying and
should be based upon recent historical data. The article offers a
practical method to increase the reliability and accuracy of value-at-risk
forecasts that can be easily implemented within an Excel spreadsheet.
Journal: Applied Economics
Pages: 853-860
Issue: 8
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982853
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982853
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Handle: RePEc:taf:applec:v:47:y:2015:i:8:p:853-860
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Arusha Cooray
Author-X-Name-First: Arusha
Author-X-Name-Last: Cooray
Title: The dynamics of Greek public debt - evidence from simultaneous and structural VAR models
Abstract:
The goal of the present article was to investigate not only the dynamics
of the Greek public debt, but also the appropriate measures required for
achieving fiscal consolidation. The empirical estimation is carried out
using a macroeconomic data set spanning the period 1980-2008 and both the
three-stage least squares (3SLS) methodological approach on a theoretical
model and the structural VAR methodology to perform forecast tests and to
calibrate the future paths of the public debt variable up to 2020. The
results suggest that only a restrictive fiscal policy that simultaneously
increases government revenues and reduces government expenditure could
permit the country to achieve debt sustainability. The results also
suggest that debt sustainability can be achieved faster when tax revenue
policies are intensified. The results are expected to have important
implications to policymakers for designing effective macroeconomic policy
in terms of achieving sustainable levels of public debt.
Journal: Applied Economics
Pages: 967-980
Issue: 10
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985372
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985372
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Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:967-980
Template-Type: ReDIF-Article 1.0
Author-Name: Fran篩s-Éric Racicot
Author-X-Name-First: Fran篩s-Éric
Author-X-Name-Last: Racicot
Title: Engineering robust instruments for GMM estimation of panel data regression models with errors in variables: a note
Abstract:
Econometricians have long recognized the need to account in some way for
measurement errors, specification errors and endogeneity to ensure that
the ordinary least squares estimator is consistent. This article
introduces a new generalized method of moments estimator that relies on
robust instruments to estimate panel data regression models containing
errors in variables. We show how this GMM approach can be generalized for
the panel data framework using higher moments and cumulants as
instruments. The new instruments, engineered for greater robustness, are
proposed to tackle the pervasive problem of weak instruments.
Journal: Applied Economics
Pages: 981-989
Issue: 10
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985373
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985373
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Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:981-989
Template-Type: ReDIF-Article 1.0
Author-Name: Lars P. Feld
Author-X-Name-First: Lars P.
Author-X-Name-Last: Feld
Author-Name: Sarah Necker
Author-X-Name-First: Sarah
Author-X-Name-Last: Necker
Author-Name: Bruno S. Frey
Author-X-Name-First: Bruno S.
Author-X-Name-Last: Frey
Title: Happiness of economists
Abstract:
We study the importance of economists' professional situation towards
their life satisfaction based on a unique survey of mostly academic
economists. On average, economists report to be highly happy with life.
Satisfaction is positively related to spending more time on doing
research. The lack of a tenured position decreases satisfaction. However,
the extent to which the uncertainty created by the tenure system affects
satisfaction varies with the contract terms. The effect is stronger if the
contract expires in the near future or cannot be extended. Publication
success has no effect if it is controlled for academic rank and the
contract duration. The finding suggests that publications are rather a
means to an end, for example, to acquire a tenured position. While the
perceived level of external pressure also has no impact, the perceived
change of pressure in recent years is positively related to economists'
life satisfaction. An explanation is that economists have accepted a high
level of pressure when entering academia but are not willing to cope with
the recent increase.
Journal: Applied Economics
Pages: 990-1007
Issue: 10
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985374
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985374
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Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:990-1007
Template-Type: ReDIF-Article 1.0
Author-Name: Agne Suziedelyte
Author-X-Name-First: Agne
Author-X-Name-Last: Suziedelyte
Title: The effects of old and new media on children's weight
Abstract:
Childhood obesity rates have recently been rising in many countries. It
has been suggested in the literature that changes in children's media
exposure may contribute to explaining this trend. I investigate whether or
not this hypothesis is supported by data. I contribute to the literature
by focusing not only on television but also on new media - computers and
video games. The Child Development Supplement to the Panel Study of Income
Dynamics is used for the analysis. To address the endogeneity of
children's media exposure, I use dynamic and panel data models. This is
another improvement upon the existing literature. Additionally, an
extensive list of control variables is included in the regressions. I find
that video game playing or computer use has no effect on children's body
weight. On the other hand, television viewing may increase children's body
weight slightly.
Journal: Applied Economics
Pages: 1008-1018
Issue: 10
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.987916
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987916
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Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:1008-1018
Template-Type: ReDIF-Article 1.0
Author-Name: B. Dima
Author-X-Name-First: B.
Author-X-Name-Last: Dima
Author-Name: Ş.M. Dima
Author-X-Name-First: Ş.M.
Author-X-Name-Last: Dima
Author-Name: F. Barna
Author-X-Name-First: F.
Author-X-Name-Last: Barna
Title: A wavelet analysis of capital markets' integration in Latin America
Abstract:
The continuous wavelet transform analysis may provide a rich and flexible
framework for the analysis of time series which exhibit less stable
statistical properties, such as the ones describing the dynamic trajectory
of capital markets. In contrast to the Fourier analysis, wavelet transform
preserves information on both time and frequency. We provide a summary of
the most important features of this framework. By involving the concept of
coherence as well as its partial and multiple forms, we analyse the
connections between Santiago Stock Exchange, Mexican Stock Exchange and
BM&FBOVESPA São Paulo Stock Exchange, for a time span which covers
the 23 September 2003-12 March 2014 period. We highlight the existence of
several significant forces of regional integration and of a short- to
medium-run synchronization process between these markets. We conclude that
deeper structural and institutional reforms are required in order to
enhance the sustainable development and more profound integration of these
markets.
Journal: Applied Economics
Pages: 1019-1036
Issue: 10
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.987917
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987917
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Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:1019-1036
Template-Type: ReDIF-Article 1.0
Author-Name: Jos頌-Gracia
Author-X-Name-First: Jos頍
Author-X-Name-Last: L-Gracia
Author-Name: Francisco Sogorb-Mira
Author-X-Name-First: Francisco
Author-X-Name-Last: Sogorb-Mira
Title: Financial constraints and cash-cash flow sensitivity
Abstract:
This article explores the cash-cash flow relationship by comparing
financially constrained and financially unconstrained companies. Unlike
previous research, we test the sensitivity of cash to cash flow by
considering unlisted firms as constrained and listed firms as
unconstrained. Our empirical evidence is based on findings from Spanish
firms and is consistent with the core rationale that unlisted firms face
more difficulties than their listed counterparts when looking for funding
from external markets. As a result, unlisted firms tend to hoard
significant amounts of cash out of the generated cash flow, while listed
firms do not. Our findings are robust to a number of additional empirical
tests.
Journal: Applied Economics
Pages: 1037-1049
Issue: 10
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.987918
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987918
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Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:1037-1049
Template-Type: ReDIF-Article 1.0
Author-Name: Piet Eichholtz
Author-X-Name-First: Piet
Author-X-Name-Last: Eichholtz
Author-Name: Ronald Huisman
Author-X-Name-First: Ronald
Author-X-Name-Last: Huisman
Author-Name: Remco C. J. Zwinkels
Author-X-Name-First: Remco C. J.
Author-X-Name-Last: Zwinkels
Title: Fundamentals or trends? A long-term perspective on house prices
Abstract:
Using a long-term time series covering 350 years of house prices along the
Herengracht in Amsterdam, we examine whether a fundamental factor or a
trend explains house prices and whether their explanatory power is time
varying. We find that agents in the housing market switch in their
formation of expectations about future changes in house prices between
fundamental and momentum strategies. Specifically, we show that agents
base their expectations more on fundamentals during economic slowdowns and
more on recent trends or momentum during economic booms.
Journal: Applied Economics
Pages: 1050-1059
Issue: 10
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.987919
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987919
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Handle: RePEc:taf:applec:v:47:y:2015:i:10:p:1050-1059
Template-Type: ReDIF-Article 1.0
Author-Name: Stijn Baert
Author-X-Name-First: Stijn
Author-X-Name-Last: Baert
Author-Name: Elsy Verhofstadt
Author-X-Name-First: Elsy
Author-X-Name-Last: Verhofstadt
Title: Labour market discrimination against former juvenile delinquents: evidence from a field experiment
Abstract:
In view of policy action to integrate ex-offenders into society, it is
important to identify the underlying mechanisms of the negative
relationship between criminal record on the one hand and later employment
and earnings on the other hand. In this study, we identify hiring
discrimination against former juvenile delinquents in a direct way. To
this end, we conduct a field experiment in the Belgian labour market. We
find that labour market discrimination is indeed a major barrier in the
transition to work for former juvenile delinquents. Labour market entrants
disclosing a history of juvenile delinquency get about 22% less callback
compared to their counterparts without a criminal record. This
discrimination is heterogeneous by the occupation for which one applies.
Journal: Applied Economics
Pages: 1061-1072
Issue: 11
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.990620
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990620
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Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1061-1072
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Feeny
Author-X-Name-First: Simon
Author-X-Name-Last: Feeny
Author-Name: Alberto Posso
Author-X-Name-First: Alberto
Author-X-Name-Last: Posso
Author-Name: Jonathan Regan-Beasley
Author-X-Name-First: Jonathan
Author-X-Name-Last: Regan-Beasley
Title: Handle with care: fragile states and the determinants of fragility
Abstract:
The international community has grave concerns over the capacity of
so-called 'fragile states' to effectively deliver basic services to their
people due to their weak policy and institutional environments. This
article examines the drivers of state fragility. The World Bank and OECD
definitions of fragility are adopted using the World Bank's Country Policy
and Institutional Assessment (CPIA) scores. Analysis is conducted on both
binary measures of fragility and the actual CPIA scores using an array of
estimation techniques. Findings indicate that democracy, income levels,
economic growth, levels of education, country size and natural resource
rents are important determinants of fragility. Unlike other studies,
findings also suggest that being a Small Island Development State is a
primary driver of fragility.
Journal: Applied Economics
Pages: 1073-1085
Issue: 11
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.990621
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990621
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Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1073-1085
Template-Type: ReDIF-Article 1.0
Author-Name: Mala Raghavan
Author-X-Name-First: Mala
Author-X-Name-Last: Raghavan
Author-Name: Mardi Dungey
Author-X-Name-First: Mardi
Author-X-Name-Last: Dungey
Title: Should ASEAN-5 monetary policy-makers act pre-emptively against stock market bubbles?
Abstract:
Stock market rises and asset price inflation in ASEAN economies have
raised the question of whether monetary authorities in these economies
should act pre-emptively against these rising trends to prevent impending
financial crises. Using structural vector error correction models (SVECMs)
which incorporate mixed data characteristics, we examine the effects and
interactions between monetary policy and stock market shocks for
Singapore, Malaysia, Thailand, Indonesia and the Philippines. The results
suggest that monetary policy focused on the stock market detracts from
price stability objectives, in particular because containing a stock
market bubble may inadvertently depress output and inflation.
Journal: Applied Economics
Pages: 1086-1105
Issue: 11
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.990622
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990622
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Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1086-1105
Template-Type: ReDIF-Article 1.0
Author-Name: Seval Mutlu Çamoğlu
Author-X-Name-First: Seval
Author-X-Name-Last: Mutlu Çamoğlu
Author-Name: Teresa Serra
Author-X-Name-First: Teresa
Author-X-Name-Last: Serra
Author-Name: Jos頍. Gil
Author-X-Name-First: Jos頍.
Author-X-Name-Last: Gil
Title: Vertical price transmission in the Turkish poultry market: the avian influenza crisis
Abstract:
This article assesses the impact of the Avian Influenza (AI) outbreak in
the Turkish poultry market by focusing on price transmission at producer
and retail levels. The relationship and patterns of transmission between
producer and retail prices are analysed by estimating a Regime-Switching
Vector Error Correction Model with three regimes. An AI information index
variable is developed and used to determine regime-switching. Results
suggest that consumer prices adjust to disequilibrium caused by the AI
crisis, while producer prices are sticky and slowly responsive.
Journal: Applied Economics
Pages: 1106-1117
Issue: 11
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.990623
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990623
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Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1106-1117
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Matas
Author-X-Name-First: Anna
Author-X-Name-Last: Matas
Author-Name: Jos魌uis Raymond
Author-X-Name-First: Jos魌uis
Author-X-Name-Last: Raymond
Author-Name: Jos魌uis Roig
Author-X-Name-First: Jos魌uis
Author-X-Name-Last: Roig
Title: How market access shapes human capital accumulation in a peripheral country: the case of Spain
Abstract:
Human capital endowment is one of the main factors influencing the level
of development of a region. This article analyses whether remoteness from
economic activity has a negative effect on human capital accumulation and,
consequently, on economic development. Making use of microdata, this
research proves that remoteness from economic activity can explain the
differences in the level of education observed across Spanish provinces
over the last 50 years. The effect is significant even when controlling
for the improvement of education supply. Nonetheless, the accessibility
effect has been petering out since the 1960s due to decreasing barriers to
mobility.
Journal: Applied Economics
Pages: 1118-1132
Issue: 11
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.990624
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990624
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Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1118-1132
Template-Type: ReDIF-Article 1.0
Author-Name: Keshab Bhattarai
Author-X-Name-First: Keshab
Author-X-Name-Last: Bhattarai
Title: Financial deepening and economic growth
Abstract:
The core of Shapley-Shubik games and general equilibrium models with a
Venn diagram is applied for a theory on the role of real finance in
economic growth among advanced economies. Then the dynamic computable
general equilibrium (DCGE) models for Germany, France, the UK, Japan and
the USA are constructed to assess the validity of the over-financing
hypothesis that has reappeared after the financial crisis of 2008. Actual
financial deepening ratios observed in the nonconsolidated balance sheet
of the OECD exceeded by factors of 3.5, 2.4, 5.1, 11.6 and 4.8 than the
optimal financial deepening ratios implied by DCGE models, respectively,
in these countries because of excessive leveraging and bubbles up to 19
times of GDP which were responsible for this great recession. Containing
such massive fluctuations for macroeconomic stability and growth in these
economies are not possible in conventional fiscal and monetary policy
models and require a DCGE analysis like this along with adoption of
separating equilibrium strategy in line of Miller-Stiglitz-Roth mechanisms
to avoid problem of asymmetric information in the process of financial
intermediation so that the gaps between actual and optimal ratios of
financial deepening remain as small as possible.
Journal: Applied Economics
Pages: 1133-1150
Issue: 11
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.993130
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993130
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Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1133-1150
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Sahar Bahmani
Author-X-Name-First: Sahar
Author-X-Name-Last: Bahmani
Author-Name: Alice Kones
Author-X-Name-First: Alice
Author-X-Name-Last: Kones
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Policy uncertainty and the demand for money in the United Kingdom
Abstract:
Limited studies that have assessed the impact of economic uncertainty on
the demand for money have concentrated on using a volatility measure of
money supply and output. Certainly, other factors such as regulation,
taxes, budget deficits, national debt, etc. can contribute to an uncertain
environment. This new measure of uncertainty, which is called 'policy
uncertainty', is now constructed for several countries and published. We
investigate the impact of this new measure on the demand for money in the
UK and find that it has a negative and significant short-run effect, but
not any log-run effects.
Journal: Applied Economics
Pages: 1151-1157
Issue: 11
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.993138
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993138
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Handle: RePEc:taf:applec:v:47:y:2015:i:11:p:1151-1157
Template-Type: ReDIF-Article 1.0
Author-Name: E. De La Poza
Author-X-Name-First: E.
Author-X-Name-Last: De La Poza
Author-Name: L. J
Author-X-Name-First: L.
Author-X-Name-Last: J
Author-Name: M.S.S. Alkasadi
Author-X-Name-First: M.S.S.
Author-X-Name-Last: Alkasadi
Title: Modelling the propagation of adult male muscle dysmorphia in Spain: economic, emotional and social drivers
Abstract:
Males aged over 40 do more gym practice to improve their body image as a
way of reinforcing their personal self-esteem and sexual appeal. Cases
when self-image becomes an obsession may result in a body dysmorphic
disorder named 'muscle dysmorphia' (MD). The combination of psychological,
environmental and biological drivers determines the appearance and
development of this disorder. In this article, we developed a discrete
population mathematical model to forecast the rate of prevalence of males
who are noncompetitive bodybuilders at risk of suffering MD in Spain in
forthcoming years. Economic, emotional, sociological and psychological
motivations were taken into account to quantify the dynamic behaviour of
Spanish noncompetitive bodybuilders. The impact of the unemployment is
reflected in the construction of two coefficients,
αu and
α21, which explain subpopulation
transits due to the economy. Sociological influences, such as human
herding and social propagation, were also considered. Our results predict
an increase in Spanish noncompetitive bodybuilders suffering MD from 1% in
2011 to around 11% in 2015. Our model can be applied to any other western
country where data are available and to another study period when the
hypotheses are applicable.
Journal: Applied Economics
Pages: 1159-1169
Issue: 12
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2013.870657
File-URL: http://hdl.handle.net/10.1080/00036846.2013.870657
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Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1159-1169
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Paul Paquin
Author-X-Name-First: Jean-Paul
Author-X-Name-Last: Paquin
Author-Name: Alain Charbonneau
Author-X-Name-First: Alain
Author-X-Name-Last: Charbonneau
Author-Name: David Tessier
Author-X-Name-First: David
Author-X-Name-Last: Tessier
Title: The derivation of the NPV variance of a risky capital investment project with first-order autoregressive cash flows and autoregressive conditional heteroscedastic variances
Abstract:
In this article, the authors develop a closed-form solution for assessing
the capital investment project NPV variance when cash
flows obey a first-order autoregressive process. A distinction is
established between static and dynamic solutions as the authors focus on
the case involving partial positive dependence between cash flows. Under a
Markovian process, the NPV solution is stationary in mean
but not strictly in variance. Constraining the process to become fully
stationary will overestimate the NPV variance. Finally,
the authors show that the Markovian NPV variance
closed-form solution is robust to the introduction of autoregressive
conditional heteroscedastic variances complying with a GARCH(1,1) process;
it will, however, have its value increased and consequently the riskiness
of the capital investment project.
Journal: Applied Economics
Pages: 1170-1186
Issue: 12
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.987915
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987915
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Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1170-1186
Template-Type: ReDIF-Article 1.0
Author-Name: Yasemin Ulu
Author-X-Name-First: Yasemin
Author-X-Name-Last: Ulu
Title: Rationality of inflation-output forecasts of MMS survey: international evidence
Abstract:
We analyse the individual rationality of inflation and output forecasts
from Money Market Survey (MMS) for a group of G7 countries and EU under
asymmetric univariate Linlin and Linex loss functions. We also test for
joint rationality of inflation-output forecasts using the forecast
rationality test under multivariate asymmetric loss functions proposed by
Ulu (2013). Our results indicate that rationality is often rejected under
symmetric loss, and results improve towards rationality when asymmetric
loss functions are assumed. The assumption of multivariate asymmetric loss
compared to univariate asymmetric loss provides further evidence towards
rationality. We also analyse directional forecast accuracy of the
inflation and output forecasts and find that the inflation-output
forecasts of MMS are valuable when considered both jointly and separately.
Journal: Applied Economics
Pages: 1187-1198
Issue: 12
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.990619
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990619
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Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1187-1198
Template-Type: ReDIF-Article 1.0
Author-Name: Pradeep Agrawal
Author-X-Name-First: Pradeep
Author-X-Name-Last: Agrawal
Title: India's petroleum demand: estimations and projections
Abstract:
Energy security is crucial for sustaining high economic growth in India.
This article empirically estimates India's long- and short-term demand
relations for crude oil, diesel and petrol (gasoline) using the ARDL and
ECM cointegration procedures and then uses them to project demand for
these products up to 2025 under various scenarios of GDP growth and oil
prices. Our projections show that over 2012 to 2025, demand is likely to
increase by about 74% for crude oil, 117% for diesel and 136% for petrol -
the annual growth rates being about 4.3% for crude oil, 6.1% for diesel
and 6.8% for petrol (gasoline). This article suggests that India needs to
(1) take measures to improve efficiency in the use of petroleum products;
(2) try to enhance supplies such as through production sharing agreements
by Indian oil companies with other countries and (3) increase the use of
nuclear, hydro, solar and other alternative energy sources, as Western
European countries have done.
Journal: Applied Economics
Pages: 1199-1212
Issue: 12
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.993131
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993131
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Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1199-1212
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Alves
Author-X-Name-First: Carlos
Author-X-Name-Last: Alves
Author-Name: Victor Mendes
Author-X-Name-First: Victor
Author-X-Name-Last: Mendes
Author-Name: Paulo Pereira da Silva
Author-X-Name-First: Paulo
Author-X-Name-Last: Pereira da Silva
Title: Do stress tests matter? A study on the impact of the disclosure of stress test results on European financial stocks and CDS markets
Abstract:
During the recent sovereign debt crisis, the European Banking Authority
conducted two stress tests on European banks in order to gauge their
capital needs, core Tier-1 ratios and ratios of resilience to adverse
shocks. We assess the informational content of the disclosure of the
stress test outcomes. We conclude that the stress tests conveyed new
information and that the outcomes were not anticipated by the stock market
but were partially anticipated by the credit default swap (CDS) market.
However, while the stock market reacted to the disclosure of the stress
test outcomes, in the CDS market there is some evidence of a 'reverse'
reaction. Moreover, the publication of the outcomes of the stress tests
had a stronger impact on the stock prices of riskier financial
institutions. A similar pattern is evident in the CDS market, albeit
narrowed to one of the stress tests and amid the financial institutions
with higher perceived credit risk.
Journal: Applied Economics
Pages: 1213-1229
Issue: 12
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.993132
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993132
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Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1213-1229
Template-Type: ReDIF-Article 1.0
Author-Name: Jarrett Hart
Author-X-Name-First: Jarrett
Author-X-Name-Last: Hart
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Author-Name: Saleem Shaik
Author-X-Name-First: Saleem
Author-X-Name-Last: Shaik
Title: The impact of trade openness on technical efficiency in the agricultural sector of the European Union
Abstract:
The aim of this study is to analyse the impact of trade openness on
technical efficiency of the European Union's (EU) agricultural sector.
There are no systematic theories linking trade policy to technical
efficiency; hence, the relation between trade liberalization and technical
efficiency is fundamentally ambiguous. Stochastic frontier analysis is
used to model the relationship between EU's production resources and
agricultural output, as well as the importance of trade openness on
technical efficiency of a country. The data for 16 of the 28 EU members
were available for the period 1980-2007 including land, capital,
fertilizer, labour, agricultural GDP, foreign direct investments (FDI),
exports and import data. Results indicate that trade openness has an
immediate, negative impact on efficiency in the EU agricultural sector.
Over time, however, trade openness does increase efficiency. The FDI
outflows increase efficiency. This suggests that an initial reduction in
capital supply forces EU nations to utilize other factor inputs more
efficiently. However, there is the unexamined potential that over time the
depletion of capital results in a decrease in efficiency. Finally,
formerly communist member-countries of the EU are found to have the lowest
technical efficiency scores whereas Southern European nations have the
highest efficiency.
Journal: Applied Economics
Pages: 1230-1247
Issue: 12
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.993134
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993134
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Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1230-1247
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Ruixin Zhang
Author-X-Name-First: Ruixin
Author-X-Name-Last: Zhang
Title: On the impact of financial development on income distribution: time-series evidence
Abstract:
Financial market development is said to have equalizing or unequalizing
effects on income distribution. Previous research used cross-sectional and
panel data and provided mixed results. Suspecting that they suffer from
aggregation bias, we adhere to time-series data and error-correction
modeling technique and address the issue one more time in each of the 17
countries for which we have time-series data. In 10 counties, short-run
effects of financial market development on income distribution were found
to be equalizing. In five countries, the effects were unequalizing.
However, the equalizing effects lasted into the long run only in three
countries of Denmark, Kenya and Turkey.
Journal: Applied Economics
Pages: 1248-1271
Issue: 12
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.993135
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993135
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Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1248-1271
Template-Type: ReDIF-Article 1.0
Author-Name: Athanasios Koulakiotis
Author-X-Name-First: Athanasios
Author-X-Name-Last: Koulakiotis
Author-Name: Apostolis Kiohos
Author-X-Name-First: Apostolis
Author-X-Name-Last: Kiohos
Author-Name: Vassilios Babalos
Author-X-Name-First: Vassilios
Author-X-Name-Last: Babalos
Title: Exploring the interaction between stock price index and exchange rates: an asymmetric threshold approach
Abstract:
This article examines the impact of stock market news on the foreign
exchange markets of USA, Canada and UK, employing an innovative extension
of the asymmetric threshold model of Apergis and Miller (2006). Under this
framework we can disentangle the reaction of foreign exchange market to
bad or good news and small or large news of stock returns. Our
comprehensive daily data-set spans the period from January 1990 to June
2014. Using a cointegration and error correction model, we document the
existence of a causal relationship between stock market and foreign
exchange markets. Most interestingly, our results derived from the
asymmetric threshold model confirm that the relationship between stock and
foreign exchange markets is sensitive to short-term good or bad news and
short-term small or large news. Our findings entail significant
implications for policymakers, governments, risk managers and
international investors.
Journal: Applied Economics
Pages: 1273-1285
Issue: 13
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.990618
File-URL: http://hdl.handle.net/10.1080/00036846.2014.990618
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Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1273-1285
Template-Type: ReDIF-Article 1.0
Author-Name: Sang Hyeon Lee
Author-X-Name-First: Sang Hyeon
Author-X-Name-Last: Lee
Author-Name: Ji Yong Lee
Author-X-Name-First: Ji Yong
Author-X-Name-Last: Lee
Author-Name: Doo Bong Han
Author-X-Name-First: Doo Bong
Author-X-Name-Last: Han
Author-Name: Rodolfo M. Nayga
Author-X-Name-First: Rodolfo M.
Author-X-Name-Last: Nayga
Title: Are Korean consumers willing to pay a tax for a mandatory BSE testing programme?
Abstract:
The outbreaks of mad cow disease (BSE) have significantly increased the
demand for food safety programs in the Korean beef market. Two issues that
are getting much attention are about whether Korea should implement
mandatory testing of slaughtered domestic cattle for BSE and whether
consumers are willing to pay a tax for the programme. No study, however,
has examined consumers' willingness to pay (WTP) a tax for a BSE testing
programme. We conducted a contingent valuation (CV) study using a
double-bounded dichotomous choice approach to estimate Korean consumers'
valuation for a mandatory BSE testing programme on slaughtered domestic
cattle that are 21months or older. Our results show that the
sample-population adjusted mean estimate of WTP a tax per year is 4482 KRW
(US $4.01) per household. This suggests that Korean consumers have a
strong preference for a mandatory testing of domestic cattle for BSE. This
study also found that Korean consumers' WTP for the programme is greater
than estimated implementation costs of the programme. These results imply
that implementing a mandatory BSE testing programme in Korea could confer
positive consumer welfare.
Journal: Applied Economics
Pages: 1286-1297
Issue: 13
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.993137
File-URL: http://hdl.handle.net/10.1080/00036846.2014.993137
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Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1286-1297
Template-Type: ReDIF-Article 1.0
Author-Name: M. N. Khan
Author-X-Name-First: M. N.
Author-X-Name-Last: Khan
Author-Name: N. Tantisantiwong
Author-X-Name-First: N.
Author-X-Name-Last: Tantisantiwong
Author-Name: S. G. M. Fifield
Author-X-Name-First: S. G. M.
Author-X-Name-Last: Fifield
Author-Name: D. M. Power
Author-X-Name-First: D. M.
Author-X-Name-Last: Power
Title: The relationship between South Asian stock returns and macroeconomic variables
Abstract:
This article investigates whether economic variables have explanatory
power for share returns in South Asian stock markets. In particular, using
data for four South Asian emerging stock markets over the period
1998-2012, the article examines the influence of a selection of local,
regional and global economic variables in explaining equity returns; most
previous studies that have examined this issue have tended to focus on
only local and/or global factors. Important factors are identified by
distilling the macroeconomic variables into principal components. Economic
activities, real interest rates, real exchange rates and the trade balance
represent local factors. Regional factors are represented by interregional
trade and regional economic activity while global factors are represented
by world financial asset returns and world economic activity. The vector
autoregression results suggest that the South Asian markets examined are
not efficient. Both local and regional factors can directly and indirectly
explain Bangladeshi, Pakistani and Sri Lankan stock returns while the
lagged returns of the Pakistani stock market and world economic activity
can explain Indian stock returns.
Journal: Applied Economics
Pages: 1298-1313
Issue: 13
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.995360
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995360
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Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1298-1313
Template-Type: ReDIF-Article 1.0
Author-Name: Anne Boring
Author-X-Name-First: Anne
Author-X-Name-Last: Boring
Title: The impact of patent protection on US pharmaceutical exports to developing countries
Abstract:
This article provides evidence that patent protection can have a positive
effect on trade, by analysing the impact of the implementation of
intellectual property rights (IPR) in developing countries on the US
exports of pharmaceutical products, following intense lobbying efforts
from the US pharmaceutical industry to have the Trade-Related Aspects of
Intellectual Property Rights (TRIPS) agreement included in the creation of
the World Trade Organization (WTO). A gravity model using panel data from
1995 to 2010 suggests that the implementation of minimum standards of
patent protection has increased US exports of pharmaceuticals to 108
nonadvanced countries.
Journal: Applied Economics
Pages: 1314-1330
Issue: 13
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.995364
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995364
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1314-1330
Template-Type: ReDIF-Article 1.0
Author-Name: Juan A. Correa
Author-X-Name-First: Juan A.
Author-X-Name-Last: Correa
Author-Name: Francisco Parro
Author-X-Name-First: Francisco
Author-X-Name-Last: Parro
Author-Name: Loreto Reyes
Author-X-Name-First: Loreto
Author-X-Name-Last: Reyes
Title: Self-selection in the market of teachers
Abstract:
Public school teachers are usually paid according to centralized earning
schedules, in which their income depends mainly on experience. By
contrast, in private schools, there is high wage dispersion, and salaries
correspond mainly to teachers' performance. That dichotomous labour
regulation encourages teachers with better unobservable skills to
self-select into private schools because the likelihood of earning higher
wages is higher than in public schools. The other side of the coin is the
self-selection of 'bad' teachers into public schools. Using a
representative sample of Chilean teachers, we estimate a two-sector Roy
model to test self-selection. We find evidence of negative self-selection
of teachers into public schools.
Journal: Applied Economics
Pages: 1331-1349
Issue: 13
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.995365
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995365
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1331-1349
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin A. Hassett
Author-X-Name-First: Kevin A.
Author-X-Name-Last: Hassett
Author-Name: Aparna Mathur
Author-X-Name-First: Aparna
Author-X-Name-Last: Mathur
Title: A spatial model of corporate tax incidence
Abstract:
Using a unique, self-compiled data-set on international tax rates, we
explore the link between taxes and manufacturing wages for a panel of 66
countries over 25years. We find, controlling for other macroeconomic
variables, that wages are significantly responsive to corporate taxation.
Higher corporate tax rates depress wages. Using spatial modelling
techniques, we also find that tax characteristics of neighbouring
countries, whether geographic or economic, have a significant effect on
domestic wages. We test for, and reject, spatial autocorrelation in our
model using a modification of the Moran-I test statistic that accounts for
country-specific fixed effects in a panel data setting. Our article fits
in with the new economic geography literature as well as the urban
economics literature which attempt to explain the spatial distribution of
wages.
Journal: Applied Economics
Pages: 1350-1365
Issue: 13
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.995367
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995367
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Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1350-1365
Template-Type: ReDIF-Article 1.0
Author-Name: Laura Andreu
Author-X-Name-First: Laura
Author-X-Name-Last: Andreu
Author-Name: Jos頌uis Sarto
Author-X-Name-First: Jos頌uis
Author-X-Name-Last: Sarto
Author-Name: Miguel Serrano
Author-X-Name-First: Miguel
Author-X-Name-Last: Serrano
Title: Implications of manager replacement: evidence from the Spanish mutual fund industry
Abstract:
We analyse the financial consequences of manager replacement in a sample
that includes all domestic and European equity funds in Spain.
Specifically, we examine a total of 104 funds of the sample that
experience manager turnover over the period 1999-2009. We find that
underperforming funds in the pre-replacement period experience a
significant improvement in the excess returns and performance after the
manager change, an improvement that lasts over time for domestic equity
funds. The analysis of the risk profile indicates that funds experiencing
a manager change do not show significantly different levels of risk before
the replacement dates although they tend to show an increase in the level
of total risk after the change. Finally, the pool-regression analysis of
the investment flows confirms that manager changes tend to impact
negatively on subsequent flows of those funds with manager turnover.
Journal: Applied Economics
Pages: 1366-1387
Issue: 13
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.997921
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997921
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Handle: RePEc:taf:applec:v:47:y:2015:i:13:p:1366-1387
Template-Type: ReDIF-Article 1.0
Author-Name: Seth C. Anderson
Author-X-Name-First: Seth C.
Author-X-Name-Last: Anderson
Author-Name: Robert B. Jr Ekelund
Author-X-Name-First: Robert B. Jr
Author-X-Name-Last: Ekelund
Author-Name: John D. Jackson
Author-X-Name-First: John D.
Author-X-Name-Last: Jackson
Author-Name: Robert D. Tollison
Author-X-Name-First: Robert D.
Author-X-Name-Last: Tollison
Title: Are auction revenues affected by rising art buyers' premia? The case of early American art
Abstract:
The steady rise in the premiums charged to art buyers at auction (above
hammer price) has been underway since 1992. This article, using a stable
and bounded sample of repeat purchase of American works created before
1950, reveals that this tact has reduced hammer prices for that art.
However, renewed and hyper-competitive efforts to bring more and higher
quality art to market by the two main houses, Sotheby's and Christie's,
have resulted in general profitability. Nevertheless, we calculate that a
rise in buyers' premia at Sotheby's, a publically traded company, has
reduced revenues and profits below their potential in the absence of such
increases.
Journal: Applied Economics
Pages: 1389-1400
Issue: 14
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.997926
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997926
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1389-1400
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Homburg
Author-X-Name-First: Stefan
Author-X-Name-Last: Homburg
Title: Critical remarks on Piketty's Capital in the Twenty-first Century
Abstract:
This article discusses the central macroeconomic claims that are made in
Thomas Piketty's book Capital in the Twenty-first
Century. The article aims to show that Piketty's contentions are
not only logically flawed but also contradicted by his own data.
Journal: Applied Economics
Pages: 1401-1406
Issue: 14
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.997927
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997927
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1401-1406
Template-Type: ReDIF-Article 1.0
Author-Name: Yuxi Xiao
Author-X-Name-First: Yuxi
Author-X-Name-Last: Xiao
Author-Name: Haizheng Li
Author-X-Name-First: Haizheng
Author-X-Name-Last: Li
Author-Name: Belton M. Fleisher
Author-X-Name-First: Belton M.
Author-X-Name-Last: Fleisher
Title: The earnings effects of health and health-related activities: a panel data approach
Abstract:
We investigate the effects of health and health-related habits on earnings
in China using panel data to control for unobserved heterogeneity related
to individual traits and job characteristics. Health-related habits
include smoking cigarettes, drinking tea, frequency of drinking alcohol
and physical exercising. We find a significant and large impact of health
status on earnings, controlling for schooling, experience and the
unobserved individual heterogeneity and job heterogeneity. We also find
that smoking has a strong negative effect on earnings net of health
status, while the estimated effects of other health-related activities are
statistically insignificant.
Journal: Applied Economics
Pages: 1407-1423
Issue: 14
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.1000521
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000521
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1407-1423
Template-Type: ReDIF-Article 1.0
Author-Name: Vu Hong Thai Nguyen
Author-X-Name-First: Vu Hong Thai
Author-X-Name-Last: Nguyen
Author-Name: Agyenim Boateng
Author-X-Name-First: Agyenim
Author-X-Name-Last: Boateng
Author-Name: David Newton
Author-X-Name-First: David
Author-X-Name-Last: Newton
Title: Involuntary excess reserves, the reserve requirements and credit rationing in China
Abstract:
Using a sample of 95 banks that covers the period 2000-2011, this article
examines Chinese banks' credit lending behaviour in response to the
changes in the reserve requirement ratio in the presence of involuntary
excess reserves (IERs) in the banking system. The study finds that Chinese
banks with positive IERs one period after a reserve requirement shock
experience a significantly increased credit supply in response to an
increase in reserve requirement ratio. However, the reserve requirements
have no significant impact on the credit supply in Chinese banks that have
negative IERs one period after a reserve requirement shock. This article
sheds lights on the effectiveness of Chinese monetary policy, which uses
reserve requirements as the primary tool to sterilize excess liquidity and
restrain credit expansion.
Journal: Applied Economics
Pages: 1424-1437
Issue: 14
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.995362
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995362
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Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1424-1437
Template-Type: ReDIF-Article 1.0
Author-Name: Surender Kumar
Author-X-Name-First: Surender
Author-X-Name-Last: Kumar
Author-Name: Hidemichi Fujii
Author-X-Name-First: Hidemichi
Author-X-Name-Last: Fujii
Author-Name: Shunsuke Managi
Author-X-Name-First: Shunsuke
Author-X-Name-Last: Managi
Title: Substitute or complement? Assessing renewable and nonrenewable energy in OECD countries
Abstract:
The elasticity of interfuel substitution between renewable and
nonrenewable energy is key to establishing effective climate change
policy. This is the first study to estimate the elasticity of substitution
between different fossil fuels and renewable resources. We used 12
manufacturing industry-level datasets for the OECD countries from 1995 to
2009. We found a complementary relationship from nonrenewable energy to
renewable energy in eight industries, whereas a substitute relationship
was maintained for four industries. In particular, the food and pulp
industries had a strong complementary relationship.
Journal: Applied Economics
Pages: 1438-1459
Issue: 14
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.997922
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997922
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Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1438-1459
Template-Type: ReDIF-Article 1.0
Author-Name: Kathryn G. Marshall
Author-X-Name-First: Kathryn G.
Author-X-Name-Last: Marshall
Title: Economic structure and factor payments
Abstract:
There is a growing body of evidence that the labour payment share in
national income varies across countries and over time, suggesting that the
popular aggregate Cobb-Douglas production function may not capture income
share dynamics. There remains conflicting evidence on the importance of
natural resource rents among low income economies and on estimates of the
rate of return to produced capital. This paper focuses on the structural
differences among countries, confirming the importance of the agriculture
sector in estimates of labour and land's share of factor income based on
81 countries at diverse levels of economic development in the year 2005. I
find that cross-country data are best modelled by a CES production
function with an elasticity of substitution of 0.8 and that many low
income countries have a higher return to capital than the United States.
Journal: Applied Economics
Pages: 1460-1480
Issue: 14
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.997924
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997924
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Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1460-1480
Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Alam᭓abater
Author-X-Name-First: Luisa
Author-X-Name-Last: Alam᭓abater
Author-Name: Laura MᲱuez-Ramos
Author-X-Name-First: Laura
Author-X-Name-Last: MᲱuez-Ramos
Author-Name: Jos頍iguel Navarro-Azor
Author-X-Name-First: Jos頍iguel
Author-X-Name-Last: Navarro-Azor
Author-Name: Celestino SuᲥz-Burguet
Author-X-Name-First: Celestino
Author-X-Name-Last: SuᲥz-Burguet
Title: A two-methodology comparison study of a spatial gravity model in the context of interregional trade flows
Abstract:
This article argues that the introduction of spatial interactions to model
the determinants of origin-destination (OD) flows can potentially result
in excessive contiguity. To explain flows between OD
regions, it is not only what happens in the origin and destination that is
relevant, but also what happens in their neighbouring regions. However,
what happens if there is a high degree of overlap between origin
neighbouring areas and destination neighbouring areas? The article
presents an empirical illustration to re-examine the evidence presented in
previous research (Alam᭓abater et al., 2013) and more
closely analyses the territorial level, focusing on the case of
interregional trade of goods at the NUTS3 level (Spanish provinces). We
then use two different methodologies within the framework of a spatial
gravity equation for interregional trade modelling. The findings confirm
the importance of spatial dependence on trade flows and in particular that
logistics decisions within a province affect shipments from contiguous
provinces.
Journal: Applied Economics
Pages: 1481-1493
Issue: 14
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.997929
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997929
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Handle: RePEc:taf:applec:v:47:y:2015:i:14:p:1481-1493
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Muscettola
Author-X-Name-First: Marco
Author-X-Name-Last: Muscettola
Title: Difficulties for small firms to invest in research prerogatives. An empirical analysis of a sample of Italian firms
Abstract:
It is a commonly accepted fact that a quite strong relation exists between
research investments and the general wealth of a given area. The main goal
of this study is to analyse and determine which financing sources better
serve this need for innovation, taking a sample of 1000 private firms in
current economic downturn. Small firms from Southern Italy often have no
access to debt capital on nondeterministic research activities, and more
importantly, it still seems like banks cannot afford to finance these
kinds of operations, mainly because of their indeterminate nature. This
research draws the conclusion that only self-evidently solvent firms have
a chance of getting the financial help needed to innovate.
Journal: Applied Economics
Pages: 1495-1510
Issue: 15
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.995363
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995363
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Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1495-1510
Template-Type: ReDIF-Article 1.0
Author-Name: Hans Bonesrønning
Author-X-Name-First: Hans
Author-X-Name-Last: Bonesrønning
Author-Name: Leiv Opstad
Author-X-Name-First: Leiv
Author-X-Name-Last: Opstad
Title: Can student effort be manipulated? Does it matter?
Abstract:
This article provides evidence that college students' effort can be
manipulated substantially by making changes in the college testing regime
and moreover that student effort is a meaningful input in education
production. The evidence comes from a quasi-experiment where a
mid-semester test with a pass requirement is introduced to a mandatory
one-semester Business School course in Macroeconomics. Four cohorts of
students - one before and three after the introduction of the pass
requirement - have reported their study effort twice during the semester,
and the relationship between achievement and study effort is investigated
by using a within-subject within-student across-study periods approach.
Journal: Applied Economics
Pages: 1511-1524
Issue: 15
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.997923
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997923
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Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1511-1524
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio C. David
Author-X-Name-First: Antonio C.
Author-X-Name-Last: David
Author-Name: Montfort Mlachila
Author-X-Name-First: Montfort
Author-X-Name-Last: Mlachila
Author-Name: Ashwin Moheeput
Author-X-Name-First: Ashwin
Author-X-Name-Last: Moheeput
Title: Does international integration matter for financial development in Africa?
Abstract:
This article analyses the links between international financial and trade
integration and financial development in sub-Saharan African (SSA)
countries. It is based on a panel data set using methods that tackle slope
heterogeneity, cross-sectional dependence and nonstationarity. The results
do not point to a general direct robust link between trade and financial
integration and financial development in SSA, once we control for other
factors such as GDP per capita and inflation. The findings may be due to a
number of factors including distortions in domestic financial markets,
relatively weak institutions and/or poor financial sector supervision. We
find some indication that financial integration is more important for
financial development in countries with better institutional quality.
Stronger scores in some measures of the quality of banking regulation and
supervision are also linked to a positive association between integration
and financial development in some of our results. Thus, African
policy-makers should be cautious about expectations regarding immediate
gains for financial development from greater international integration.
Such gains are more likely to occur slowly and through indirect channels.
Journal: Applied Economics
Pages: 1525-1549
Issue: 15
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.997925
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997925
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Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1525-1549
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Mitchell
Author-X-Name-First: Heather
Author-X-Name-Last: Mitchell
Author-Name: Mark Fergusson Stewart
Author-X-Name-First: Mark Fergusson
Author-X-Name-Last: Stewart
Title: What should you pay to host a party? An economic analysis of hosting sports mega-events
Abstract:
Governments all over the world put huge amounts of money into bidding for,
and then hosting, sports events like Football's World Cup or the Olympic
Games. They also give money to professional sports teams and other
mega-events to encourage them to locate within a particular constituency.
This article examines the statistical relationship between tourism and
three Football World Cups and five Olympic Games, finding very little
positive effect. Given this conclusion, the article looks at why
governments continue to bid for these competitions. It presents evidence
that shows that these sports contests make people happy, and argues that
politicians capitalize on this feel-good factor; harnessing the hubris
associated with these events for political gain. The article then contends
that the best way to reduce the politics associated with bidding for
mega-events is to allocate them via an auction, rather than the wasteful
rent-seeking methods that are currently used.
Journal: Applied Economics
Pages: 1550-1561
Issue: 15
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.1000522
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000522
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Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1550-1561
Template-Type: ReDIF-Article 1.0
Author-Name: Taoufik Bouraoui
Author-X-Name-First: Taoufik
Author-X-Name-Last: Bouraoui
Title: The effect of reducing quantitative easing on emerging markets
Abstract:
On 22 May and 19 June 2013, the US Federal Reserve (Fed) announced a
reduction in the asset purchase programme of its quantitative easing
policy. This article investigates the impact of this news on the
currencies of emerging markets. Using event study methodology, our results
report a global significant depreciation in the currencies of all emerging
markets in our sample, but with different depreciation sizes from one
market to another. To test whether the depreciation in currencies is
driven by capital flow components, a regression analysis is performed.
Inward FDI as well as outward FDI appear to have more explanatory power
than inward and outward portfolio investment in explaining the impact.
With the slowdown in asset purchases by the Fed, emerging countries have
incurred large capital outflows from their markets to the US market,
resulting in a drop in their currencies.
Journal: Applied Economics
Pages: 1562-1573
Issue: 15
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.1000524
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000524
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Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1562-1573
Template-Type: ReDIF-Article 1.0
Author-Name: Conghui Hu
Author-X-Name-First: Conghui
Author-X-Name-Last: Hu
Author-Name: Xun Zhang
Author-X-Name-First: Xun
Author-X-Name-Last: Zhang
Author-Name: Qiuming Gao
Author-X-Name-First: Qiuming
Author-X-Name-Last: Gao
Title: Synthetic CDO pricing: the perspective of risk integration
Abstract:
The underlying asset pool of collateral debt obligations (CDOs)
simultaneously encompasses credit risk and market risk. However, the
standard CDO pricing model not only underestimates the risk to the asset
pool due to a poor description of the correlation structure among obligors
but is also incapable of reflecting the impacts of interdependent markets,
credit risks and systematic sudden shocks on the asset pool. This paper
studies the joint impact of interrelated market and credit risk factors on
the key inputs of CDO pricing (default probability, default correlation
and default loss rate) under the framework of factor copula CDO pricing
model and constructs a risk-integrated model for CDO pricing. In addition,
we extend the static integrated model to a dynamic version by allowing the
risk factors driven by the copula-GARCH process. The simulation results
show that, compared with an integrated model, the premium of senior
tranches is significantly lower under the standard model. Such difference
is mainly due to different assumptions of the distributions of
risk-driving factor.
Journal: Applied Economics
Pages: 1574-1587
Issue: 15
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.1000525
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000525
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Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1574-1587
Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Yagihashi
Author-X-Name-First: Takeshi
Author-X-Name-Last: Yagihashi
Author-Name: Juan Du
Author-X-Name-First: Juan
Author-X-Name-Last: Du
Title: Intertemporal elasticity of substitution and risk aversion: are they related empirically?
Abstract:
This article examines the relationship between two types of preference:
preference of intertemporal choices and preference towards risk. In the
simplest form of the constant relative risk aversion utility function, the
intertemporal elasticity of substitution (IES) and risk aversion have an
inverse relationship. However, there is no empirical evidence that
suggests this inverse relationship holds. We examine the relationship
between risk aversion and IES using household consumption data from the
Consumer Expenditure Survey during 1996-2010. Multiple risk domains are
selected to represent risk preference, and for each domain, we consider
some households to be more risk averse than others. We separately estimate
IES for the more risk-averse and less risk-averse households. We find that
the IES estimates are generally smaller for the more risk-averse
households than for the less risk-averse households and that the
difference is statistically significant in the majority of the financial
domains. This finding supports the inverse relationship between the two
parameters, although considerable heterogeneity is found across domains.
Journal: Applied Economics
Pages: 1588-1605
Issue: 15
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2014.1000530
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000530
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Handle: RePEc:taf:applec:v:47:y:2015:i:15:p:1588-1605
Template-Type: ReDIF-Article 1.0
Author-Name: Rabia Arif
Author-X-Name-First: Rabia
Author-X-Name-Last: Arif
Author-Name: Azam Chaudhry
Author-X-Name-First: Azam
Author-X-Name-Last: Chaudhry
Title: The effects of external migration on enrolments, accumulated schooling and dropouts in Punjab
Abstract:
External migration in developing countries can relax household income
constraints because of external remittances. This paper looks at whether
the external migration of individuals in a household has a positive effect
on schooling outcomes of children as measured by school enrolments,
accumulated level of schooling, number of days spent in school and
dropouts in Punjab. Historic migration rates were used to instrument for
migration in an analysis of school outcomes for children of different ages
to see which group has been most affected by external migration. The
results show a significantly positive impact of external migration on the
enrolments of younger children, whereas, the accumulated level of
schooling for older children increases significantly if there is an
external migrant in the household.
Journal: Applied Economics
Pages: 1607-1632
Issue: 16
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000518
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000518
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Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1607-1632
Template-Type: ReDIF-Article 1.0
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Author-Name: Sizhong Sun
Author-X-Name-First: Sizhong
Author-X-Name-Last: Sun
Title: Foreign direct investment in R&D and domestic entrepreneurship in China's manufacturing industries
Abstract:
This paper argues that internationalization of innovation and the related
spillovers can also affect the likelihood of firm entry and exit into an
industry. By making use of firm-level panel data from China over the
period 2005 to 2007, this paper examines the impact of foreign direct
investment (FDI) in research and development (R&D) and the related
linkages on entry and exit likelihoods of domestic firms in (i) transport
equipment and (ii) electrical machinery and equipment manufacturing
industries. In order to evaluate the region-of-origin effect, this paper
also separately examines the impact of FDI in R&D originating from (i) all
countries except Hong Kong, Macau and Taiwan and (ii) Hong Kong, Macau and
Taiwan. Furthermore, the impact of FDI in R&D on entry and exit of Chinese
firms in the two industries is examined by splitting the data into large
and small firms within the two industries. The results of the pooled
probit regression reveal that FDI in R&D and the related spillovers can
have a significant impact on the likelihood of entry and exit of domestic
firms in transport equipment and electric machinery and equipment
industries. The empirical analysis also suggests that the impact of
changes in FDI in R&D and the related spillovers varies across firm size.
Journal: Applied Economics
Pages: 1633-1651
Issue: 16
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000527
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000527
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Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1633-1651
Template-Type: ReDIF-Article 1.0
Author-Name: Duol Kim
Author-X-Name-First: Duol
Author-X-Name-Last: Kim
Author-Name: Iljoong Kim
Author-X-Name-First: Iljoong
Author-X-Name-Last: Kim
Title: Trade-offs in the allocation of prosecution resources: an opportunity cost of overcriminalization
Abstract:
One in every five citizens has a criminal record in Korea. Scarce
prosecution resources have been severely skewed toward prosecuting more
'legislated crime' than 'conventional crime'. We estimate the opportunity
cost of this prosecutory pattern in terms of spillovers
to conventional crimes. The cost was found to be substantial. For example,
in 2003, the total spillovers accounted for approximately 25% of the
increase in conventional crimes for 3 years from 2000 because of the
disproportionate prosecutory focus on legislated crimes compared with that
of the 1990s. This article has relevance to those countries with an
overcriminalizing trend for legislated crimes.
Journal: Applied Economics
Pages: 1652-1669
Issue: 16
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000531
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000531
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Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1652-1669
Template-Type: ReDIF-Article 1.0
Author-Name: Zhuo Qiao
Author-X-Name-First: Zhuo
Author-X-Name-Last: Qiao
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Title: Which is a better investment choice in the Hong Kong residential property market: a big or small property?
Abstract:
The relationship between property size and property investment yield is an
interesting issue in the real estate market. Previous studies usually use
the mean-variance criterion to compare the return-risk profiles of the
yields of different property sizes in the United States. However, this
criterion has a few shortcomings. This article provides the first attempt
to use a stochastic dominance approach to analyse this issue. We adopt two
powerful stochastic dominance tests to compare the yields of five property
size classes in the Hong Kong residential property market. In our study,
we analyse two possible investment outcomes: (1) investors could not rent
out their properties, and thus they would gain/lose from the
appreciation/depreciation of residential property prices; (2) investors
could also gain from rental incomes. Our empirical results provide strong
evidence to show that the yields of smaller property classes
stochastically dominate the yields of bigger property classes, suggesting
that buying smaller properties is a better investment choice in the Hong
Kong residential property market.
Journal: Applied Economics
Pages: 1670-1685
Issue: 16
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000534
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000534
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Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1670-1685
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim Idi
Author-X-Name-Last: Cheffou
Title: Are Islamic stock markets efficient? A time-series analysis
Abstract:
This article investigates the weak-form informational efficient hypothesis
for three major Islamic stock markets (world, emerging and developed).
Unlike previous studies, we applied different parametric and nonparametric
tests to investigate efficiency in the short and long horizons. Using
recent data over the period May 2002-June 2012, we developed a time-series
analysis of Islamic stock price dynamics in the context of the recent
global financial crisis (2008-2009). Our analysis offers two interesting
results. First, emerging Islamic stock markets seem to be less efficient
than developed Islamic markets, suggesting interesting investment
opportunities and diversification benefits from this region in both the
short run and the long run. Second, nonrejection of the cointegration
hypothesis for developed Islamic markets and the global conventional stock
market point to efficiency for the former in the long term, even if it is
inefficient in the short term. This finding has at least two economic and
political implications: (i) investors who seek moderate risk would do well
to opt for Islamic funds in developed countries, particularly as they
share the same tendency and provide similar expected returns in the long
term as conventional funds, (ii) Islamic financial systems can offer a
useful model that can help to reform and remodel conventional financial
institutions.
Journal: Applied Economics
Pages: 1686-1697
Issue: 16
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000535
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000535
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Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1686-1697
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Mourao
Author-X-Name-First: Paulo
Author-X-Name-Last: Mourao
Author-Name: Jos預edro Cabral
Author-X-Name-First: Jos預edro
Author-X-Name-Last: Cabral
Title: Periodograms on fiscal illusion: discussing the cycle lengths of public finances in European countries
Abstract:
In this article, we study the duration of public finance cycles in 12
European countries since 1960. We applied periodogram techniques on the
levels of fiscal illusion found for these established democracies and
tested the statistical significance of the Fourier frequency peaks. Our
empirical efforts revealed that most of the cycles in these countries
could be characterized as long-term cycles (approximately 30 years),
embodying subcycles of approximately 15 years. These findings show
that in addition to the commonly studied electoral cycles or real business
cycles, our democracies demonstrate extended public finance cycles that
extend over various legislative tenures ruled by different political
parties.
Journal: Applied Economics
Pages: 1698-1709
Issue: 16
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002901
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002901
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Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1698-1709
Template-Type: ReDIF-Article 1.0
Author-Name: Hooi Hooi Lean
Author-X-Name-First: Hooi Hooi
Author-X-Name-Last: Lean
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Testing for weak-form efficiency of crude palm oil spot and future markets: new evidence from a GARCH unit root test with multiple structural breaks
Abstract:
There is a sizeable literature that tests for weak-form efficiency in
commodity and energy spot and future prices. While many studies now allow
for multiple structural breaks to address the criticism that conventional
unit root tests have low power to reject the unit root null in the
presence of structural change, the extant literature overlooks the fact
that conventional unit root tests are biased in the presence of
conditional heteroscedasticity. We apply a recently developed generalized
autoregressive conditional heteroscedasticity (GARCH) unit root test with
multiple structural breaks to crude palm oil spot and future prices and
find much more evidence against weak-form efficiency than that found using
tests that fail to allow for conditional heteroscedasticity. Our results
point to the importance of allowing for heteroscedasticity when testing
for efficiency in commodity and energy spot and future prices.
Journal: Applied Economics
Pages: 1710-1721
Issue: 16
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002905
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002905
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Handle: RePEc:taf:applec:v:47:y:2015:i:16:p:1710-1721
Template-Type: ReDIF-Article 1.0
Author-Name: Surendranath R. Jory
Author-X-Name-First: Surendranath R.
Author-X-Name-Last: Jory
Author-Name: Thanh N. Ngo
Author-X-Name-First: Thanh N.
Author-X-Name-Last: Ngo
Author-Name: Daphne Wang
Author-X-Name-First: Daphne
Author-X-Name-Last: Wang
Author-Name: Amrita Saha
Author-X-Name-First: Amrita
Author-X-Name-Last: Saha
Title: The market response to corporate scandals involving CEOs
Abstract:
This article examines corporate scandals of both a financial and
nonfinancial nature between 1993 and 2011 which is expressly linked to a
firm's CEO. Findings suggest that in the short run, investors react
adversely to such events and that recalcitrant CEOs end up costing their
shareholders dearly. Such scandals are more likely to occur among large
firms, firms with insiders on the board and where the value of options
granted to a firm's managers is substantial. However, firms with more cash
flows are less likely to be mired in such scandals, and their stock
returns are less likely to be affected. There is an increase in stock
price volatility of affected firms in the days following the announcement
of the scandal. A point of respite for investors is the damage being
confined to the short run. The stock price performance of the firms
affected by the scandals matches the performance of control firms in the
long run post-announcement. However, the operating performance of the
sample firms is better than their matched counterparts in the years after
the scandal. We contribute to the extant literature by considering
corporate scandal events that are the doings of a firm's CEO and not
necessarily financially motivated.
Journal: Applied Economics
Pages: 1723-1738
Issue: 17
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.995361
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995361
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Template-Type: ReDIF-Article 1.0
Author-Name: Massomeh Hajilee
Author-X-Name-First: Massomeh
Author-X-Name-Last: Hajilee
Author-Name: Omar M. Al Nasser
Author-X-Name-First: Omar M.
Author-X-Name-Last: Al Nasser
Author-Name: Gladys H. Perez
Author-X-Name-First: Gladys H.
Author-X-Name-Last: Perez
Title: Banking sector development and interest rate volatility in emerging economies
Abstract:
Over the last decades, macroeconomic stability is said to be one of the
major concerns of emerging economies. Financial sector as a core of
macroeconomic stability has been under close consideration of policy
makers. The relationship between interest rate uncertainty and banking
sector development as one of the most important indicators of financial
sector development, especially for emerging economies, has not received
enough attention in the literature. Perhaps this article is the most
comprehensive study that investigates the relationship between interest
rate uncertainty and banking sector development for a large group of
emerging economies. To do this, the short-run and long-run models using a
bounds testing approach to cointegration for 12 emerging economies over
the period 1980-2011 have been developed. Estimated results from all
models indicate that interest rate uncertainty has significant effect on
banking sector development in both short-run and long-run phenomena in the
majority of countries. The findings indicate that the link between
interest rate uncertainty and banking sector development in each country
depends on each country's specific structure.
Journal: Applied Economics
Pages: 1739-1747
Issue: 17
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000520
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000520
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Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1739-1747
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Ismail Saglam
Author-X-Name-First: Ismail
Author-X-Name-Last: Saglam
Author-Name: Inayat Hussain
Author-X-Name-First: Inayat
Author-X-Name-Last: Hussain
Title: Spectrum auction designs and revenue variations
Abstract:
This study examines a sample of 93 national 3G spectrum auctions for the
period 2000-2011 to identify the sources of substantial revenue
variations. An implied reduced-form econometric model that recognises the
censored nature of the sample relates per capita winning bid (per Mhz, per
million populations) values to regulator-determined auction design
characteristics, auction competitiveness, mobile wireless market
conditions and spectrum package attributes identified from tender
documents. The analysis reveals that among other factors, all auction
design characteristics independently impact on realized 3G spectrum
auction revenues.
Journal: Applied Economics
Pages: 1748-1763
Issue: 17
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000532
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000532
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Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1748-1763
Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Marco Villatoro
Author-X-Name-First: Marco
Author-X-Name-Last: Villatoro
Title: Is Beta-t-EGARCH(1,1) superior to GARCH(1,1)?
Abstract:
Statistical performance, in-sample point forecast precision and
out-of-sample density forecast precision of GARCH(1,1) and
Beta-t-EGARCH(1,1) models are compared. We study the
volatility of nine global industry indices for period from April 2006 to
July 2010. Competing models are estimated for periods before, during and
after the United States (US) financial crisis of 2008. The results provide
evidence of the superior out-of-sample predictive performance of
Beta-t-EGARCH compared to GARCH after the US financial
crisis.
Journal: Applied Economics
Pages: 1764-1774
Issue: 17
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000536
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000536
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Template-Type: ReDIF-Article 1.0
Author-Name: K. Nagac
Author-X-Name-First: K.
Author-X-Name-Last: Nagac
Title: Tax system and informal economy: a cross-country analysis
Abstract:
This article analyses determinants of informal economy. By using
qualitative aspects of tax systems, first, we create a 'Smithian' tax
system index based on Adam Smith's four maxims. Then, using this index and
other control variables, we study determinants of informal economy. We use
unique panel data set that is constructed by using various sources. After
taking into account the endogeneity of tax burden and GDP per capita, our
results show that 'Smithian' tax system index does not significantly
affect informal economy. Our results suggest that rule of law, complexity
of a tax system and tax burden affect informal economy negatively, while
labour market regulations affect positively.
Journal: Applied Economics
Pages: 1775-1787
Issue: 17
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002893
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002893
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Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1775-1787
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Aziz N. Berdiev
Author-X-Name-First: Aziz N.
Author-X-Name-Last: Berdiev
Title: Do natural disasters increase the likelihood that a government is replaced?
Abstract:
We examine the impact of natural disasters on the likelihood that a
government is removed from office using panel data for 156 countries over
the period 1975-2010. Employing a conditional logit model, we find that
the occurrence of natural disasters, the number of natural disasters and
disaster-related losses increase the chances that a government will be
replaced. The magnitudes of these effects differ widely across natural
disaster types, but are robust to the inclusion of economic and political
variables and to model specifications. Overall, these findings are
consistent across our sample of OECD and non-OECD countries.
Journal: Applied Economics
Pages: 1788-1808
Issue: 17
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002894
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002894
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Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1788-1808
Template-Type: ReDIF-Article 1.0
Author-Name: M. Fatih Ekinci
Author-X-Name-First: M. Fatih
Author-X-Name-Last: Ekinci
Author-Name: F. Pinar Erdem
Author-X-Name-First: F. Pinar
Author-X-Name-Last: Erdem
Author-Name: Zubeyir Kilinc
Author-X-Name-First: Zubeyir
Author-X-Name-Last: Kilinc
Title: Credit growth, current account and financial depth
Abstract:
Exploring the determinants and dynamics of the current account balance is
one of the priorities of academic literature and policy circles. Although
the effects of structural variables are deeply analysed, a lesser
attention has been paid to the impact of financial variables. Drawing on
standard empirical current account models and with a large sample of
industrial and developing countries, we report a significant deterioration
in the current account balance in case of an increase in the credit
growth. Moreover, we find that this link is substantially stronger for the
developing ones motivating a closer examination. Therefore, we further
advance our analysis and show that credit growth causes a stronger impact
on the current account balance for lower levels of financial depth. In
other words, at the early stages of financial development, acceleration in
the credit growth might cause a larger deterioration in the current
account balance; thus, it might be suggested that monetary policy and
macro-prudential measures aimed at preventing financial excess might be
more effective to reduce the external imbalances at the early stages of
financial deepening.
Journal: Applied Economics
Pages: 1809-1821
Issue: 17
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002897
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002897
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Handle: RePEc:taf:applec:v:47:y:2015:i:17:p:1809-1821
Template-Type: ReDIF-Article 1.0
Author-Name: Nestor M. Arguea
Author-X-Name-First: Nestor M.
Author-X-Name-Last: Arguea
Author-Name: Richard R. Hawkins
Author-X-Name-First: Richard R.
Author-X-Name-Last: Hawkins
Title: The rate elasticity of Florida tourist development (aka bed) taxes
Abstract:
One aspect of taxation in Florida is unique in that state policymakers
have created several different tourist development taxes, generally
allowing local governments to adopt up to four of these ad
valorem levies (which can total 5%) on transient rentals. The
rentals include, but are not limited to, hotel stays. In this article, we
estimate the elasticity of this local tax base with respect to the rate
for Florida counties with rate changes between 1998 and 2012. Results
indicate several significant and large short-term declines from periodic
county-level increases in the tax rate, but no significant long-term
effects.
Journal: Applied Economics
Pages: 1823-1832
Issue: 18
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000519
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000519
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Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1823-1832
Template-Type: ReDIF-Article 1.0
Author-Name: Shengrong Lu
Author-X-Name-First: Shengrong
Author-X-Name-Last: Lu
Author-Name: Yanwu Wang
Author-X-Name-First: Yanwu
Author-X-Name-Last: Wang
Title: Convergence, technological interdependence and spatial externalities: a spatial dynamic panel data analysis
Abstract:
This study adopts a spatial dynamic panel data approach and spatial
quasi-maximum likelihood to re-estimate the speed of growth convergence in
91 countries based on technological interdependence and spatial
externalities. We perform a conditional Lagrange multiplier test for
spatial error dependence and find some differences to previous studies.
First, the switch from a cross-sectional to a dynamic panel data framework
enables the estimated rate of conditional convergence to be higher, more
accurate and more appropriate for realistic and theoretical expectations.
Second, the spatial Durbin model (SDM) is a general form of simplified
model that considers spatial error correlation, and its likelihood ratio
test for the theoretical model of 'learning by doing' effect provides
further evidence. Finally, statistical tests find that spatial correlation
not only occurs in each variable, but also appears in the error term.
Thus, the SDM does not exist in the assumptions associated with the
spatial error, which are not necessarily correct.
Journal: Applied Economics
Pages: 1833-1846
Issue: 18
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000523
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000523
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Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1833-1846
Template-Type: ReDIF-Article 1.0
Author-Name: Charlene M. Kalenkoski
Author-X-Name-First: Charlene M.
Author-X-Name-Last: Kalenkoski
Author-Name: Gigi Foster
Author-X-Name-First: Gigi
Author-X-Name-Last: Foster
Title: Measuring the relative productivity of multitasking to sole-tasking in household production: experimental evidence
Abstract:
The standard household production model does not incorporate multitasking,
although time-diary data reveal that individuals regularly multitask. We
incorporate multitasking into a household production model in which time
spent in childcare can be sole-tasked or multitasked with another
household production activity and we present the results of an experiment
designed to measure the productivity parameters of this model. Because
utility and productivity are intertwined and difficult to disentangle in
any household production model, we vary the utility pay-offs our
experimental participants receive in order to determine how our estimated
productivity parameters are affected by a change in the utility
parameters. Our estimates of the relative multitasking productivities
indicate that, while a minute of sole-tasked time produces more of a
single commodity than a minute of multitasked time, total household output
increases when two outputs are produced simultaneously, hence confirming
the economic motivation for multitasking.
Journal: Applied Economics
Pages: 1847-1862
Issue: 18
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000526
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000526
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Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1847-1862
Template-Type: ReDIF-Article 1.0
Author-Name: Laura E. Armey
Author-X-Name-First: Laura E.
Author-X-Name-Last: Armey
Author-Name: Robert M. McNab
Author-X-Name-First: Robert M.
Author-X-Name-Last: McNab
Title: Democratization and civil war
Abstract:
This article examines the impact of civil war on democratization,
particularly focusing on whether civil war provides an opportunity for
institutional reform. We investigate the impact of war termination in
general, along with prolonged violence, rebel victory and international
intervention on democratization. Using an unbalanced panel data set of 96
countries covering a 34-year period, our analysis suggests that civil war
lowers democratization in the succeeding period. Our findings also suggest
that United Nations intervention increases democratization, as do wars
ending in stalemates. However, wars ending in rebel victories seem to
reduce democratization. These findings appear robust to conditioning,
different instrument sets, modelling techniques and the measurement of
democracy.
Journal: Applied Economics
Pages: 1863-1882
Issue: 18
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000529
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000529
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Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1863-1882
Template-Type: ReDIF-Article 1.0
Author-Name: Steven J. Jordan
Author-X-Name-First: Steven J.
Author-X-Name-Last: Jordan
Author-Name: Andrew Vivian
Author-X-Name-First: Andrew
Author-X-Name-Last: Vivian
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Location, location, location: currency effects and return predictability?
Abstract:
Most international financial market studies that compare across countries
utilize the US dollar as the common numeraire. We explore the little
studied question of the appropriate choice for the base currency and ask
if currency choice can affect the final conclusion of whether
predictability exists. We provide empirical results for stock return
predictability that demonstrate the importance of the numeraire. For
example, the existence (absence) of predictability for a US investor does
not necessarily imply the existence (absence) of predictability for other
foreign investors.
Journal: Applied Economics
Pages: 1883-1898
Issue: 18
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000537
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000537
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Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1883-1898
Template-Type: ReDIF-Article 1.0
Author-Name: Shekar Bose
Author-X-Name-First: Shekar
Author-X-Name-Last: Bose
Author-Name: Hafizur Rahman
Author-X-Name-First: Hafizur
Author-X-Name-Last: Rahman
Title: Examining the relationship between stock return volatility and trading volume: new evidence from an emerging economy
Abstract:
Using daily stock return data for individual stocks from an emerging
economy, this article examines the relationship between return volatility
and trading volume under the theoretical postulate of the mixture of
distributions hypothesis. The results suggest that the contemporaneous
trading volume as a proxy for latent information arrival to the market did
not contribute to the removal of significant ARCH or Generalized
Autoregressive Conditional Heteroscedasticity effects that are found in
stocks at the first stage of the investigation. The same holds for the
lagged volume except for one case. This, perhaps, suggests that the
trading volume (contemporaneous or lagged) is not adequately conveying
information to induce traders' views of the desirability of trade and,
therefore, points to the need for searching for other micro and macro
variables to be used as potential proxy for information arrival to the
stock market of the emerging economy.
Journal: Applied Economics
Pages: 1899-1908
Issue: 18
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002885
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002885
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Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1899-1908
Template-Type: ReDIF-Article 1.0
Author-Name: Shakil Quayes
Author-X-Name-First: Shakil
Author-X-Name-Last: Quayes
Title: Outreach and performance of microfinance institutions: a panel analysis
Abstract:
Using a panel of 764 microfinance institutions (MFIs) from 87 countries,
this study analyses the possible trade-off between outreach and
performance and shows that greater depth of outreach has a positive impact
on the financial performance of an MFI. The empirical results of this
study should dispel the widely held apprehension that the recent emphasis
on attainment of financial sustainability by the MFIs could seriously
impair their outreach efforts and shows that outreach to the poor can
actually bolster financial performance.
Journal: Applied Economics
Pages: 1909-1925
Issue: 18
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002891
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002891
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Handle: RePEc:taf:applec:v:47:y:2015:i:18:p:1909-1925
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Giokas
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Giokas
Author-Name: Nicolaos Eriotis
Author-X-Name-First: Nicolaos
Author-X-Name-Last: Eriotis
Author-Name: Ioannis Dokas
Author-X-Name-First: Ioannis
Author-X-Name-Last: Dokas
Title: Efficiency and productivity of the food and beverage listed firms in the pre-recession and recessionary periods in Greece
Abstract:
This study uses data envelopment analysis to examine the liquidity and
sales efficiency of the Food and Beverage listed firms in Athens Exchange
in the period 2006-2012. The liquidity efficiency of the firms is higher
than the sales efficiency but the results indicate that there are not
statistical significant differences in the rankings estimated by the two
models in each period. The Malmquist Productivity Index reveals that over
the period of the study, firms have experienced an annual average increase
in productivity of 0.5% (a slight progress). On examining the components
of this productivity change, it becomes evident that firms have
experienced an annual average of 2% increase in technology combined with a
decrease in technical efficiency of -1.5%. The results indicate that 52.4%
of the firms experienced productivity gains in the examined period, and
this was mainly the result of technological gain rather than efficiency
improvement. More than 90% of the firms in the sample shift the efficiency
frontier and only 33.3% of the firms are catching up, improving their
productivity by reducing inefficiency. Moreover, the empirical study
reveals that the overall technical inefficiencies of the firms are
primarily caused by pure technical inefficiencies rather than scale
inefficiencies.
Journal: Applied Economics
Pages: 1927-1941
Issue: 19
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002886
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002886
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Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1927-1941
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Yuan
Author-X-Name-First: Wei
Author-X-Name-Last: Yuan
Author-Name: Ahmet Göncü
Author-X-Name-First: Ahmet
Author-X-Name-Last: Göncü
Author-Name: Giray Ökten
Author-X-Name-First: Giray
Author-X-Name-Last: Ökten
Title: Estimating sensitivities of temperature-based weather derivatives
Abstract:
Pricing of temperature-based weather derivatives has been studied in the
literature; however, there is no analysis of the estimation of the
sensitivities of weather derivatives in a stochastic model of
temperatures. We use pathwise derivative and kernel methods to derive
Monte Carlo estimators for the sensitivity (Greeks) of temperature-based
weather derivatives. These sensitivities can be used by investors for
choosing the most suitable weather contracts for partial hedging or
speculation. Temperature data from New York, Atlanta and Chicago are used
in the discussion of numerical results.
Journal: Applied Economics
Pages: 1942-1955
Issue: 19
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002888
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002888
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Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1942-1955
Template-Type: ReDIF-Article 1.0
Author-Name: Cristhian Mellado
Author-X-Name-First: Cristhian
Author-X-Name-Last: Mellado
Author-Name: Diego Escobari
Author-X-Name-First: Diego
Author-X-Name-Last: Escobari
Title: Virtual integration of financial markets: a dynamic correlation analysis of the creation of the Latin American Integrated Market
Abstract:
This article investigates the role of virtual integration of financial
markets on stock market return co-movements. In May of 2011, the Chilean,
Colombian and Peruvian stock markets virtually integrated their stock
exchanges and central securities depositories to form the Latin American
Integrated Market (MILA). We utilize the dynamic conditional correlation
model proposed by Engle (2002) to identify a statistically significant
positive correlation between these markets. Moreover, we find strong
evidence that the creation of the MILA increased the levels of dynamic
correlation between stock returns. A higher correlation was also found
during the dot-com bubble and the 2007 financial crises. Our results imply
a decline in gains from international diversification by holding
portfolios consisting of diverse stocks of these countries.
Journal: Applied Economics
Pages: 1956-1971
Issue: 19
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002892
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002892
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Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1956-1971
Template-Type: ReDIF-Article 1.0
Author-Name: B. Rivera
Author-X-Name-First: B.
Author-X-Name-Last: Rivera
Author-Name: B. Casal
Author-X-Name-First: B.
Author-X-Name-Last: Casal
Author-Name: L. Currais
Author-X-Name-First: L.
Author-X-Name-Last: Currais
Title: Length of stay and mental health of the immigrant population in Spain: evidence of the healthy immigrant effect
Abstract:
This article analyses the relationship between how long immigrant
populations reside in the country of destination and the state of their
mental health. The empirical approach to this relationship relies on data
from the Spanish National Health Survey 2011-2012. The
results confirm a Healthy Immigrant Effect that tends to decline in
accordance with how long the immigrant stays. Immigrants who have been
residing for less than 10 years in Spain have better mental health
than the national population as a whole. It is important to study health
disparities among the foreign population and how these evolve to ensure
that it has access to health services and that its health care needs are
met.
Journal: Applied Economics
Pages: 1972-1982
Issue: 19
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002895
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002895
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Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1972-1982
Template-Type: ReDIF-Article 1.0
Author-Name: Younes Ben Zaied
Author-X-Name-First: Younes
Author-X-Name-Last: Ben Zaied
Author-Name: Marie Estelle Binet
Author-X-Name-First: Marie Estelle
Author-X-Name-Last: Binet
Title: Modelling seasonality in residential water demand: the case of Tunisia
Abstract:
This article proposes to model seasonal patterns of residential water
demand using the techniques of seasonal integration and cointegration. The
methodology is applied to quarterly aggregate time series data for Tunisia
(1980-2007), applying the same increasing, multi-step pricing scheme in
the whole country. First, a seasonal cointegration analysis demonstrates
the relevance of a pricing policy that increases the size of the lower
consumption block in summer. Second, the nonseasonal cointegration
analysis reveals a relatively high price elasticity for the highest
consumption block. Therefore, we also propose to increase the tariff
progressivity to promote water savings. This modified pricing scheme will
help to achieve goals of environmental protection and social equity.
Journal: Applied Economics
Pages: 1983-1996
Issue: 19
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002896
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002896
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Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1983-1996
Template-Type: ReDIF-Article 1.0
Author-Name: Dan Saar
Author-X-Name-First: Dan
Author-X-Name-Last: Saar
Author-Name: Yossi Yagil
Author-X-Name-First: Yossi
Author-X-Name-Last: Yagil
Title: Corporate yield curves as predictors of future economic and financial indicators
Abstract:
The government yield curve is known for its ability to predict the future
growth rate of the economy. Later studies showed that credit spreads can
assist in predicting macroeconomic behaviour as well. We extend this
notion by utilizing corporate yield curves and demonstrating that
corporate yield curve spreads can predict future economic growth, the
future state of the economy and stock market behaviour. In addition, our
sample covers the most recent data available, and it also includes the
crash year of 2008 and the recovery period following it. Our results
reveal a trade-off effect between the government yield curve, which is a
better predictor for long-term forecasting, and the corporate yield
curves, which are better predictors for short-term predictions. In
addition, we show that both the government and corporate yield curves are
more effective in predicting negative rather than positive economic
changes.
Journal: Applied Economics
Pages: 1997-2011
Issue: 19
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002898
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002898
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Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:1997-2011
Template-Type: ReDIF-Article 1.0
Author-Name: Meixin Guo
Author-X-Name-First: Meixin
Author-X-Name-Last: Guo
Author-Name: Huiran Pan
Author-X-Name-First: Huiran
Author-X-Name-Last: Pan
Title: Can cross-listing relax financial frictions in trade and equity holdings? A sector-level analysis
Abstract:
Previous studies have documented the positive mutual relationship between
bilateral aggregate goods trade and asset holdings. This article examines
whether financial frictions play an important role in this mutual
relationship. Instrumental variable Poisson pseudo maximum likelihood
(IV-PPML) estimation method is applied to a new panel of data on US
imports and foreign equity holdings in 20 manufacturing sectors from 43
countries over the period 2001-2007. The results confirm the significantly
positive relationship between goods trade and equity holdings, and show
that financial frictions are an important factor causing this positive
correlation. In addition, we find that equity cross-listings in the US
stock markets provide external funds to relax financial frictions and
promote goods trade. This impact varies with different measures of
financial frictions in developing and developed countries.
Journal: Applied Economics
Pages: 2012-2029
Issue: 19
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002900
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002900
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Handle: RePEc:taf:applec:v:47:y:2015:i:19:p:2012-2029
Template-Type: ReDIF-Article 1.0
Author-Name: Afschin Gandjour
Author-X-Name-First: Afschin
Author-X-Name-Last: Gandjour
Title: A model to optimize investments in health technologies, quality of care and research
Abstract:
Funds for health technologies compete with funds for implementing health
technologies as well as funds for conducting research to reduce
uncertainty around treatment and implementation cost-effectiveness. No
study has yet shown how to allocate a combined budget for health
technologies, implementation and research. The purpose of this work was to
present an allocation model with the goal to maximize health. Based on a
constrained optimization formulation, we show that considering
opportunities to invest in implementation and research may justify
considerable disinvestment in health technologies. This may reduce the
willingness to pay for new health technologies significantly.
Journal: Applied Economics
Pages: 2031-2039
Issue: 20
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.995366
File-URL: http://hdl.handle.net/10.1080/00036846.2014.995366
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Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2031-2039
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Chu Chuang
Author-X-Name-First: Chung-Chu
Author-X-Name-Last: Chuang
Author-Name: Yi-Hsien Wang
Author-X-Name-First: Yi-Hsien
Author-X-Name-Last: Wang
Author-Name: Tsai-Jung Yeh
Author-X-Name-First: Tsai-Jung
Author-X-Name-Last: Yeh
Author-Name: Shuo-Li Chuang
Author-X-Name-First: Shuo-Li
Author-X-Name-Last: Chuang
Title: Hedging effectiveness of the hedged portfolio: the expected utility maximization subject to the value-at-risk approach
Abstract:
Multivariate volatilities and distribution play an important role in
portfolio selection and can be used to calculate the value-at-risk (VaR)
of a multiple-asset financial position. This study proposes a new expected
utility maximization (EUM) model that accounts for VaR (EUM model with a
VaR constraint (EUM-VaR)). Additionally, using the EUM-VaR model, this
study investigates the hedging effectiveness of short and long hedged
portfolios constructed with multivariate generalized autoregressive
conditional heteroscedasticity (GARCH)-type models that feature level
effects and multivariate normal and skewed
distributions
for stock indexes and their corresponding futures in the Greater China
Region. It is found that, all else equal, portfolios constructed using the
multivariate skewed distribution
are far more effective in hedging than those that rely on the other
distributions, and the effectiveness of hedged portfolios from the
multivariate GARCH-type models with level effects outperform those without
level effects. Additionally, the effectiveness of hedged portfolios from
multivariate asymmetric GARCH-type models exceeds that of those from
multivariate symmetric GARCH-type models. Thus, investors should select
the multivariate asymmetry in volatility, multivariate asymmetry in
distribution, and EUM-VaR models to construct effectively hedged
portfolios. The results of this study can provide useful implications for
investors looking to manage risk.
Journal: Applied Economics
Pages: 2040-2052
Issue: 20
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000528
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000528
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Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2040-2052
Template-Type: ReDIF-Article 1.0
Author-Name: Larry Li
Author-X-Name-First: Larry
Author-X-Name-Last: Li
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: Operational risk, the legal system and governance indicators: a country-level analysis
Abstract:
A total of 4388 operational loss events recorded over three decades in 53
countries are analysed on a country level in terms of the size of the
economy, the standard of living, the legal system, the regional factor and
six governance indicators. The results show that the average severity of
the operational losses incurred by firms located in a particular country
is positively related to the size of the economy and the standard of
living. The results also show that loss of severity is negatively related
to governance indicators, particularly regulatory quality. The frequency
of operational loss events is also positively related to the size of the
economy.
Journal: Applied Economics
Pages: 2053-2072
Issue: 20
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1000533
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000533
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Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2053-2072
Template-Type: ReDIF-Article 1.0
Author-Name: Karl Ludwig Keiber
Author-X-Name-First: Karl Ludwig
Author-X-Name-Last: Keiber
Author-Name: Helene Samyschew
Author-X-Name-First: Helene
Author-X-Name-Last: Samyschew
Title: The role of sentiment in global risk premia
Abstract:
This article examines the role of sentiment for global risk premia. We
analyse whether the global risk premia on macroeconomic fundamentals can
be estimated more thoroughly if sentiment is included as additional
conditioning information. The analysis is performed in the framework of a
conditional multiple beta pricing model. The focus of analysis is the
asset excess returns of the G-7 stock markets in the period from February
1999 to February 2012. The obtained results indicate that sentiment as
conditioning information is able to contribute to the explanation of the
general macroeconomic risk premia.
Journal: Applied Economics
Pages: 2073-2091
Issue: 20
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002887
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002887
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Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2073-2091
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Palardy
Author-X-Name-First: Joseph
Author-X-Name-Last: Palardy
Author-Name: Tomi Ovaska
Author-X-Name-First: Tomi
Author-X-Name-Last: Ovaska
Title: Decomposing household, professional and market forecasts on inflation: a dynamic factor model analysis
Abstract:
A dynamic factor model with stochastic volatility is used to investigate
the relationships between three alternative measures of inflation
expectations. The results show evidence of both a common time-varying
trend and a common transitory component between inflation and short-term
inflation expectations from households, professionals and markets. While
the common time-varying trend has declined in both level and volatility
since the early 1980s, it was found that consumer expectations are
disproportionately influenced by the visibility of prices of select few
goods. Roughly speaking, a 1% point increase in food and energy prices
leads to about 1/3% point increase in consumer forecasts of inflation. In
terms of policymaking, this finding suggests that stability in highly
visible prices can moderate inflation in a meaningful way.
Journal: Applied Economics
Pages: 2092-2101
Issue: 20
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002889
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002889
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Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2092-2101
Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Rossi
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Rossi
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Title: Stock market reactions to announcements of the board of directors: evidence from Italy
Abstract:
The board of directors plays an important role in corporate governance. It
is an internal mechanism that controls and monitors the actions of
managers and aligns the utility functions between corporate owners and
managers. The board of directors performs multiple functions that concern,
for example, the replacement of the managers, financial policy, the
preparation of strategic plans and other actions that affect the
performance of the company. The board plays an important role since on the
one hand it controls the actions of management and on the other it advises
the management regarding the strategies to be adopted. In this study, 100
announcements regarding the appointment of the board of directors of 100
Italian listed companies during the period 2012-2014 are investigated. The
results show a positive reaction within 20 days around the
announcement date. In four of the six time windows, cumulative abnormal
returns (CARs) are positive and statistically significant. The positive
reaction of the market would appear, however, to be linked more to the
composition of the board of directors than to the size of the board of
directors.
Journal: Applied Economics
Pages: 2102-2118
Issue: 20
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002902
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002902
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Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2102-2118
Template-Type: ReDIF-Article 1.0
Author-Name: Harald Badinger
Author-X-Name-First: Harald
Author-X-Name-Last: Badinger
Author-Name: Jesus Crespo Cuaresma
Author-X-Name-First: Jesus
Author-X-Name-Last: Crespo Cuaresma
Title: Aggregravity: estimating gravity models from aggregate data
Abstract:
This article considers alternative methods to estimate econometric models
based on bilateral data when only aggregate information on the dependent
variable is available. Such methods can be used to obtain an indication of
the sign and magnitude of bilateral model parameters and, more
importantly, to decompose aggregate into bilateral data, which can then be
used as proxy variables in further empirical analyses. We perform a Monte
Carlo study and carry out a simple real world application using intra-EU
trade and capital flows, showing that the methods considered work
reasonably well and are worthwhile being considered in the absence of
bilateral data.
Journal: Applied Economics
Pages: 2119-2126
Issue: 20
Volume: 47
Year: 2015
Month: 4
X-DOI: 10.1080/00036846.2014.1002903
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002903
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Handle: RePEc:taf:applec:v:47:y:2015:i:20:p:2119-2126
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Bajo-Rubio
Author-X-Name-First: Oscar
Author-X-Name-Last: Bajo-Rubio
Author-Name: Carmen D𮠭Mora
Author-X-Name-First: Carmen
Author-X-Name-Last: D𮠭Mora
Title: On the employment effects of outward FDI: the case of Spain, 1995-2011
Abstract:
In this article, we analyse the impact on domestic employment resulting
from outward FDI performed by Spanish firms, using industry data for the
period 1995-2011. Together with the effects on the total employment, we
differentiate the effects according to the particular groups of countries
and activities to which those FDI outflows are addressed. In addition, the
impact of outward FDI on the demand for labour is also analysed separately
for high and low skill levels of the labour force.
Journal: Applied Economics
Pages: 2127-2141
Issue: 21
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2014.1002904
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002904
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Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2127-2141
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Christensen
Author-X-Name-First: Michael
Author-X-Name-Last: Christensen
Author-Name: Michael Vangsgaard Christensen
Author-X-Name-First: Michael Vangsgaard
Author-X-Name-Last: Christensen
Author-Name: Ken Gamskjaer
Author-X-Name-First: Ken
Author-X-Name-Last: Gamskjaer
Title: Delegated portfolio management and optimal allocation of portfolio managers
Abstract:
In this article, we investigate whether the application of the
mean-variance framework on portfolio manager allocation offers any
out-of-sample benefits compared to a naﶥ strategy of equal weighting.
Based on an exclusive data-set of high-net-worth (HNW) investors, we
utilize a wide variety of methodologies to estimate the input parameters
including exponentially weighted moving average (EWMA), generalized
autoregressive conditional heteroscedasticity (GARCH) and Bayes-Stein
shrinkage estimation. We apply nine different mean-variance models, but
find that none of these present any consistent benefit over a naﶥ
strategy of equal weighting.
Journal: Applied Economics
Pages: 2142-2153
Issue: 21
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005811
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005811
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Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2142-2153
Template-Type: ReDIF-Article 1.0
Author-Name: Niels Hermes
Author-X-Name-First: Niels
Author-X-Name-Last: Hermes
Author-Name: Aljar Meesters
Author-X-Name-First: Aljar
Author-X-Name-Last: Meesters
Title: Financial liberalization, financial regulation and bank efficiency: a multi-country analysis
Abstract:
This article investigates the impact of financial reforms on bank
efficiency. More specifically, we distinguish between two different types
of financial reforms, i.e. financial liberalization measures and measures
of the quality of bank regulation and supervision (i.e. financial
regulation), and study their relationship to bank efficiency separately.
Moreover, we analyse whether the impact of financial liberalization on
bank efficiency is conditional on the quality of regulation and
supervision of the banking system. We apply stochastic frontier analysis
to calculate bank efficiency at the individual bank level and use a new
and detailed database that measures different aspects of financial
reforms. The data-set consists of 87 312 bank-year observations
covering 61 countries for the period 1996-2005. Overall, we show that the
impact of financial liberalization policies on bank efficiency is
conditional on the extent to which bank regulation and supervision has
been adopted and developed.
Journal: Applied Economics
Pages: 2154-2172
Issue: 21
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005815
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005815
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Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2154-2172
Template-Type: ReDIF-Article 1.0
Author-Name: J. H. Chung
Author-X-Name-First: J. H.
Author-X-Name-Last: Chung
Author-Name: T. H. Yoo
Author-X-Name-First: T. H.
Author-X-Name-Last: Yoo
Title: Government policy, network externalities and mobile telecommunication services: evidence from OECD countries
Abstract:
This article analyses the effect of government policy on the diffusion of
mobile telecommunication services in member countries of the Organization
for Economic Cooperation and Development (OECD). Specifically, we examine
how the competition in and standard policies of each country affect
cellular diffusion through interactions with positive and negative network
externalities. The empirical analysis shows that significant network
externality effects exist in a cellular market. Although the positive
effects dominate the negative effects initially, the negative network
externality effects become larger and outweigh the positive externality
effects after a certain level of diffusion rate has been achieved. In
particular, a single standard policy and the speed of technological
innovation combined with the previous penetration rate generate a positive
network externality on the diffusion of mobile telecommunications.
However, a competition policy that solely increases the rate of new
subscriptions does not generate any interacting effects.
Journal: Applied Economics
Pages: 2173-2183
Issue: 21
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005816
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005816
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Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2173-2183
Template-Type: ReDIF-Article 1.0
Author-Name: J. Hanna
Author-X-Name-First: J.
Author-X-Name-Last: Hanna
Author-Name: L. L鶩
Author-X-Name-First: L.
Author-X-Name-Last: L鶩
Author-Name: S. Petit
Author-X-Name-First: S.
Author-X-Name-Last: Petit
Title: Intra-tourism trade, income distribution and tourism endowment: an econometric investigation
Abstract:
Empirical investigation (Nowak et al., 2012) points out
that vertical intra-industry trade (VIIT) in Europe is the dominant type
of intra-industry trade (IIT) in the tourism sector. This article is the
first in tourism literature to test separately the determinants of
vertically and horizontally differentiated services, using the most recent
models in the theory of IIT. We examine bilateral trade among all trading
partners of the sample of European countries, covering the period from
2000 to 2008. We show that differences in gross domestic product
per capita and the income-distribution overlap, as well
as cultural proximity, are the most significant driving forces behind VIIT
for European countries. Geographic distance has a negative effect, whereas
specific tourism endowments and relative size of the economies are less
conclusive. These results confirm theory predictions and most of the
empirical findings related to the pattern of VIIT for the manufacturing
sector. As expected, we find that determinants of VIIT cannot explain
horizontal intra-industry trade in tourism. We suggest two alternative
methods of estimation: generalized least squares logistic function and the
fractional logit estimator. We conclude that there are common factors
explaining IIT in the manufacturing and tourism trades.
Journal: Applied Economics
Pages: 2184-2200
Issue: 21
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005817
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005817
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Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2184-2200
Template-Type: ReDIF-Article 1.0
Author-Name: Mateja Matajič
Author-X-Name-First: Mateja
Author-X-Name-Last: Matajič
Author-Name: Timotej Jagrič
Author-X-Name-First: Timotej
Author-X-Name-Last: Jagrič
Author-Name: Jani Bekő
Author-X-Name-First: Jani
Author-X-Name-Last: Bekő
Title: A differentiated tolls system - an effective transport policy tool for Slovenia?
Abstract:
We provide an econometric model of passenger and freight transportation
demand based on panel data for 10 sections of toll roads in Slovenia.
Transportation demand on Slovenian motorways is price inelastic. The price
elasticity of transportation demand statistically varies among different
parts of the toll sections, so it would seem sensible to introduce a
differentiated toll system that would allow the simultaneous achievement
of multiple objectives, such as increasing the internalization of the
external costs of transport, increasing transportation demand management
on the basis of price and increasing cost recovery for the maintenance and
development of toll roads in Slovenia. Transportation demand is even more
responsive to changes in fuel price than changes in tolls, so
transportation policy can manage transportation demand using differences
in fuel prices. Based on estimates of demand models differentiated
according to several geographical groups of road sections, we also find
that growth in the price elasticity of transportation demand in Slovenia
can be achieved through the expansion of the transport supply by
increasing the competitiveness of rail transport and alternative
transportation routes.
Journal: Applied Economics
Pages: 2201-2217
Issue: 21
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005818
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005818
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Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2201-2217
Template-Type: ReDIF-Article 1.0
Author-Name: Yueming Qiu
Author-X-Name-First: Yueming
Author-X-Name-Last: Qiu
Author-Name: Yi David Wang
Author-X-Name-First: Yi David
Author-X-Name-Last: Wang
Author-Name: Jianfeng Wang
Author-X-Name-First: Jianfeng
Author-X-Name-Last: Wang
Title: Implied discount rate and payback threshold of energy efficiency investment in the industrial sector
Abstract:
The industrial sector is responsible for about a third of the energy usage
in the United States, and there is significant energy saving potential
from the industrial sector. However, the phenomenon of "energy efficiency
gap" - the scenario in which cost-effective energy efficient technologies
enjoy only limited market success - appears frequently in the industrial
sector. This article tries to explain this efficiency gap in the
industrial sector by empirically estimating the implied discount rates and
payback thresholds industrial firms use to evaluate their energy
efficiency investments. Using the Industrial Assessment Centers (IAC)
database from 2002 to 2011, with more than 30 000 energy efficiency
recommendations, this article builds structural models of firms'
evaluation of an energy efficiency project. The model results show that
the implied discount rates of medium to small industrial firms range from
40 to 45%, and the average payback threshold is about 9 months.
Journal: Applied Economics
Pages: 2218-2233
Issue: 21
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005820
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005820
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:21:p:2218-2233
Template-Type: ReDIF-Article 1.0
Author-Name: Tina Dulam
Author-X-Name-First: Tina
Author-X-Name-Last: Dulam
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Title: Emigration, wage differentials and brain drain: the case of Suriname
Abstract:
In this article, we examine two hypotheses concerning emigration. The
first hypothesis is that emigration is positively correlated with wage
differentials. The second hypothesis concerns a positive correlation
between emigration and higher education in the sending country (the
so-called brain gain hypothesis). We analyse unique time-series data for
Suriname for the period 1972-2009, for which we fit error correction
models to disentangle short-run from long-run effects. We document
moderate support for the first hypothesis, but we find strong support for
the brain drain (and not brain gain) hypothesis. We conclude with
implications of our findings for Suriname.
Journal: Applied Economics
Pages: 2339-2347
Issue: 23
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005826
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005826
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Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2339-2347
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian (Wai-Kong) Cheung
Author-X-Name-First: Adrian (Wai-Kong)
Author-X-Name-Last: Cheung
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Title: Crypto-currency bubbles: an application of the Phillips-Shi-Yu (2013) methodology on Mt. Gox bitcoin prices
Abstract:
The creation of bitcoin heralded the arrival of digital or crypto-currency
and has been regarded as a phenomenon. Since its introduction, it has
experienced a meteoric rise in price and rapid growth accompanied by huge
volatility swings, and also attracted plenty of controversies which even
involved law enforcement agencies. Hence, claims abound that bitcoin has
been characterized by bubbles ready to burst any time (e.g. the recent
collapse of bitcoin's biggest exchange, Mt Gox). This has earned plenty of
coverage in the media but surprisingly not in the academic literature. We
therefore fill this knowledge gap. We conduct an econometric investigation
of the existence of bubbles in the bitcoin market based on a recently
developed technique that is robust in detecting bubbles - that of Phillips
et al. (2013a). Over the period 2010-2014, we detected a
number of short-lived bubbles; most importantly, we found three huge
bubbles in the latter part of the period 2011-2013 lasting from 66 to
106 days, with the last and biggest one being the one that 'broke the
camel's back' - the demise of the Mt Gox exchange.
Journal: Applied Economics
Pages: 2348-2358
Issue: 23
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005827
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005827
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Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2348-2358
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Author-Name: Stephan Popp
Author-X-Name-First: Stephan
Author-X-Name-Last: Popp
Author-Name: Huson Ali Ahmed
Author-X-Name-First: Huson
Author-X-Name-Last: Ali Ahmed
Title: Is the efficient market hypothesis day-of-the-week dependent? Evidence from the banking sector
Abstract:
In this article, we propose a new hypothesis: that the efficient market
hypothesis is day-of-the-week-dependent. We apply the test to firms
belonging to the banking sector and listed on the NYSE. We find
significant evidence that the efficient market hypothesis is
day-of-the-week-dependent. Overall, for only 62% of firms, the unit root
null hypothesis is rejected on all the five trading days. We also discover
that when investors do not account for unit root properties in devising
trading strategies, they obtain spurious profits.
Journal: Applied Economics
Pages: 2359-2378
Issue: 23
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005828
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005828
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Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2359-2378
Template-Type: ReDIF-Article 1.0
Author-Name: Martina Lawless
Author-X-Name-First: Martina
Author-X-Name-Last: Lawless
Author-Name: Brian O'Connell
Author-X-Name-First: Brian
Author-X-Name-Last: O'Connell
Author-Name: Conor O'Toole
Author-X-Name-First: Conor
Author-X-Name-Last: O'Toole
Title: Financial structure and diversification of European firms
Abstract:
Small and medium enterprises have been shown to rely mainly on banks for
funding and, unlike larger firms, rarely have direct access to capital
markets. This article looks at the extent to which SMEs avail of a wider
range of funding options and how their use differs across firms and
countries. Across all countries, we find that firms are currently using
two or three sources of finance to fund their operations and have had
previous experience of other types of funding. There are some noticeable
differences across countries with peripheral economies generally being
less diversified. Differences across firm size and age groups are more
marked than cross-country variation, with smaller and younger firms
significantly more reliant on a limited set of finance types and older,
larger firms having more diversified financial structures. Looking at
individual sources of financing, we find that trade credit and informal
sources of finance are extremely prevalent across all countries, with
Irish firms being particularly likely to use them as sources of funding.
Journal: Applied Economics
Pages: 2379-2398
Issue: 23
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005829
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005829
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Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2379-2398
Template-Type: ReDIF-Article 1.0
Author-Name: Marie Poprawe
Author-X-Name-First: Marie
Author-X-Name-Last: Poprawe
Title: A panel data analysis of the effect of corruption on tourism
Abstract:
This study empirically tests the hypothesis that corruption has a negative
effect on tourism. Having to pay bribes while on holiday or a business
trip increases the costs of travelling to a country where corruption is
prevalent. Tourists are thus more likely to travel to countries where
these additional costs do not need to be incurred. This hypothesis is
tested using a panel data set of over 100 countries and 16 years. The
results indicate that a 1-point increase in the Corruption Perception
Index (implying a decrease in corruption) results in a 2% to 7% increase
in tourist inflows. In addition, tourist inflows rise with GDP per capita,
openness and growth and are higher in countries with a temperate climate.
Journal: Applied Economics
Pages: 2399-2412
Issue: 23
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005874
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005874
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Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2399-2412
Template-Type: ReDIF-Article 1.0
Author-Name: Kostas Mavromaras
Author-X-Name-First: Kostas
Author-X-Name-Last: Mavromaras
Author-Name: Peter Sloane
Author-X-Name-First: Peter
Author-X-Name-Last: Sloane
Author-Name: Zhang Wei
Author-X-Name-First: Zhang
Author-X-Name-Last: Wei
Title: The scarring effects of unemployment, low pay and skills under-utilization in Australia compared
Abstract:
There is a substantial literature on the scarring effects of unemployment
on future employment prospects and a smaller one on the scarring effects
of low pay, but the possibility that skills mismatch, in the form of
skills under-utilization, may have similar detrimental effects has not
been considered before. We use the Household, Income and Labour Dynamics
in Australia panel to investigate the dynamics of unemployment, low pay
and skills under-utilization, including differences by gender and
education. We show that, in addition to earlier evidence on wage penalties
and reduced job satisfaction, skills under-utilization scars future
employment prospects in a way similar to that of low pay.
Journal: Applied Economics
Pages: 2413-2429
Issue: 23
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008762
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008762
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Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2413-2429
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Bruestle
Author-X-Name-First: Stephen
Author-X-Name-Last: Bruestle
Author-Name: W. Mark Crain
Author-X-Name-First: W. Mark
Author-X-Name-Last: Crain
Title: A mean-variance approach to forecasting with the consumer confidence index
Abstract:
This article refines the way consumer confidence survey data are used in
forecasting models. The refinement is easy to describe: it extends
existing models by controlling for statistically significant changes in
consumer confidence index values. The motivation behind this refinement is
simply that not all changes in the confidence index are statistically
significant, and mean index values alone provide a noisy signal. Using
Michigan Index of Consumer Confidence from 1967 through 2013, we show that
controlling for significant versus insignificant changes in the consumer
confidence index materially enhances the explanatory power of household
expenditure forecasting models.
Journal: Applied Economics
Pages: 2430-2444
Issue: 23
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008763
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008763
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Handle: RePEc:taf:applec:v:47:y:2015:i:23:p:2430-2444
Template-Type: ReDIF-Article 1.0
Author-Name: D. Ventosa-Santaula
Author-X-Name-First: D.
Author-X-Name-Last: Ventosa-Santaula
Author-Name: M. G-Zald
Author-X-Name-First: M.
Author-X-Name-Last: G-Zald
Author-Name: F. H. Wallace
Author-X-Name-First: F. H.
Author-X-Name-Last: Wallace
Title: The real exchange rate, regime changes and volatility shifts
Abstract:
We make use of a data-set with both long span and high frequency to test
for purchasing power parity (PPP) while allowing for a structural shift in
the volatility of the Mexico-US bilateral real exchange rate (RER). The
Kim, Leybourne and Newbold (2002) unit root test, robust to changes in the
innovation variance, indicates mean stationarity of the monthly RER, and
hence evidence of PPP, for the full sample, 1930-2012, and various
subsamples. The persistence of deviations of the real rate from its PPP
level as measured by half-lives ranges from 1.37 to 2.41 years.
Journal: Applied Economics
Pages: 2445-2454
Issue: 24
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005821
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005821
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Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2445-2454
Template-Type: ReDIF-Article 1.0
Author-Name: Burkhard Raunig
Author-X-Name-First: Burkhard
Author-X-Name-Last: Raunig
Title: Firm credit risk in normal times and during the crisis: are banks less risky?
Abstract:
Bank solvency was a major issue during the financial crisis of 2007-2009,
but bank credit default swap (CDS) spreads were almost always below
nonbank CDS spreads. What is the reason for this gap? Are banks perceived
to be less risky? This study empirically decomposes CDS premia for 45
major banks and 167 large industrial firms from Europe and the US. It
turns out that expected losses are usually somewhat lower for banks than
for nonbanks, but expected losses contribute relatively little to the
observed CDS premia. CDS spreads for banks and nonbanks differ mainly
because market participants require a lower compensation for bearing bank
credit risk. The quite persistent difference in the credit risk premia for
banks and nonbanks disappears only temporarily during the crisis.
Journal: Applied Economics
Pages: 2455-2469
Issue: 24
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008758
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008758
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Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2455-2469
Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Healy
Author-X-Name-First: Joshua
Author-X-Name-Last: Healy
Author-Name: Kostas Mavromaras
Author-X-Name-First: Kostas
Author-X-Name-Last: Mavromaras
Author-Name: Peter J. Sloane
Author-X-Name-First: Peter J.
Author-X-Name-Last: Sloane
Title: Adjusting to skill shortages in Australian SMEs
Abstract:
Skill shortages are often portrayed as a major problem for advanced
economies, yet there is surprisingly little empirical evidence about how
firms adjust to skill shortages and their associated effects on firm
performance. This article provides new evidence from the Business
Longitudinal Database, an Australian data set with unusually rich
information on the causes and consequences of skill shortages in small-
and medium-sized enterprises. We document the range of alternative
strategies that firms adopt when responding to skill shortages and show
that certain types of adaptation are used in some cases and not in others,
depending on the type of shortage encountered and other attributes of the
firm. Further, we show that certain types of skill shortage are more
likely to be long-lasting and difficult to resolve, while others are
alleviated relatively quickly with minimal adjustment. Our findings yield
lessons for the skill utilization strategies of firms and for the labour
market policies of governments.
Journal: Applied Economics
Pages: 2470-2487
Issue: 24
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008764
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008764
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Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2470-2487
Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Shun Tsai
Author-X-Name-First: Yung-Shun
Author-X-Name-Last: Tsai
Author-Name: Chien-Chih Lin
Author-X-Name-First: Chien-Chih
Author-X-Name-Last: Lin
Author-Name: Hsiao-Yin Chen
Author-X-Name-First: Hsiao-Yin
Author-X-Name-Last: Chen
Title: Optimal diversification, bank value maximization and default probability
Abstract:
This study argues that the optimal level of diversification for the
maximization of bank value is asymmetrical and depends on the business
cycle. During times of expansion, systematic risks are relatively low;
hence, the effect of raising systematic risks from portfolio
diversification is slight. Consequently, the benefit of reducing
individual risks dominates any loss from raising systematic risks, leading
to a higher value for a bank by holding a diversified portfolio of assets.
On the contrary, during times of recession, systematic risks are
relatively high. It is more likely that the loss from raising systematic
risks surpasses the benefit of reducing individual risks from portfolio
diversification. Consequently, more diversification leads to lower bank
values. Finally, some empirical evidence from the banks in Taiwan is
provided.
Journal: Applied Economics
Pages: 2488-2499
Issue: 24
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008766
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008766
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Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2488-2499
Template-Type: ReDIF-Article 1.0
Author-Name: Stijn Van Puyvelde
Author-X-Name-First: Stijn
Author-X-Name-Last: Van Puyvelde
Author-Name: Ralf Caers
Author-X-Name-First: Ralf
Author-X-Name-Last: Caers
Author-Name: Cind Du Bois
Author-X-Name-First: Cind
Author-X-Name-Last: Du Bois
Author-Name: Marc Jegers
Author-X-Name-First: Marc
Author-X-Name-Last: Jegers
Title: Does organizational ownership matter? Objectives of employees in public, nonprofit and for-profit nursing homes
Abstract:
Does organizational ownership matter for employees? We conducted a
discrete choice experiment to reveal employees' objectives in for-profit,
nonprofit and governmental nursing homes. The results indicate that
differences in objectives among nursing home staff are at least partially
related to differences in ownership type. More specifically, we find that
employees of public nursing homes are less extrinsically motivated than
their for-profit and nonprofit counterparts. However, the results also
show that employees of for-profit, nonprofit and governmental nursing
homes are trading off output quality and output quantity differently, in
line with the view that public providers of elderly care are pursuing a
supplier-of-last-resort objective function.
Journal: Applied Economics
Pages: 2500-2513
Issue: 24
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008767
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008767
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Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2500-2513
Template-Type: ReDIF-Article 1.0
Author-Name: Jinfang Li
Author-X-Name-First: Jinfang
Author-X-Name-Last: Li
Title: The asymmetric effects of investor sentiment and monetary policy on stock prices
Abstract:
We examine the impact of investor sentiment and monetary policy on the
stock prices under different market states based on the Markov-switching
vector autoregression (MS-VAR) model. The results show that the sentiment
shocks, more than monetary policy shocks, lead to not only much larger
fluctuations of stock prices but also much longer duration in the stock
market downturn than in the stock market expansion, which shows obvious
asymmetric effect. Moreover, the responses of stock prices to the
sentiment shocks present an immediate effect, while the responses of stock
prices to the monetary policy shocks show one-period lag effect.
Journal: Applied Economics
Pages: 2514-2522
Issue: 24
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008770
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008770
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Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2514-2522
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon
Author-X-Name-First: Robert
Author-X-Name-Last: Dixon
Author-Name: G. C. Lim
Author-X-Name-First: G. C.
Author-X-Name-Last: Lim
Author-Name: Jan C. van Ours
Author-X-Name-First: Jan C.
Author-X-Name-Last: van Ours
Title: The effect of shocks to labour market flows on unemployment and participation rates
Abstract:
This article presents an analysis of labour market dynamics, in particular
of flows in the labour market and how they interact and affect the
evolution of unemployment rates and participation rates, the two main
indicators of labour market performance. Our analysis has two special
features. First, apart from the two labour market states - employment and
unemployment - we consider a third state - out of the labour force.
Second, we study net rather than gross flows, where net refers to the
balance of flows between any two labour market states. Distinguishing a
third state is important because the labour market flows to and from that
state are quantitatively important. Focusing on net flows simplifies the
complexity of interactions between the flows and allows us to perform a
dynamic analysis in a structural vector-autoregression framework. We find
that a shock to the net flow from unemployment to employment drives the
unemployment rate and the participation rate in opposite directions while
a shock to the net flow from not in the labour force to unemployment
drives the rates in the same direction.
Journal: Applied Economics
Pages: 2523-2539
Issue: 24
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008771
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008771
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Handle: RePEc:taf:applec:v:47:y:2015:i:24:p:2523-2539
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Rocco Ciciretti
Author-X-Name-First: Rocco
Author-X-Name-Last: Ciciretti
Author-Name: Ambrogio Dalò
Author-X-Name-First: Ambrogio
Author-X-Name-Last: Dalò
Author-Name: Stefano Herzel
Author-X-Name-First: Stefano
Author-X-Name-Last: Herzel
Title: Socially responsible and conventional investment funds: performance comparison and the global financial crisis
Abstract:
We investigate the performance of socially responsible funds (SRFs) and
conventional funds (CFs) in different market (geographical area and class
size) segments during the period 1992-2012. From an unbalanced sample of
more than 22 000 funds, we define a matched sample using a
beta-distance measure to match any SRF with the 'nearest neighbour' CF in
terms of sensitivity to risk factors. Using this matching approach and a
recursive analysis, we identify several switch points in the lead/lag
relationship between the two investment styles over time in different
market segments. A relevant finding of our analysis is that SRFs played an
'insurance role' outperforming CFs during the 2007 global financial
crisis.
Journal: Applied Economics
Pages: 2541-2562
Issue: 25
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2014.1000517
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1000517
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Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2541-2562
Template-Type: ReDIF-Article 1.0
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Author-Name: Yizao Liu
Author-X-Name-First: Yizao
Author-X-Name-Last: Liu
Author-Name: Chen Zhu
Author-X-Name-First: Chen
Author-X-Name-Last: Zhu
Title: TV advertising spillovers and demand for private labels: the case of carbonated soft drinks
Abstract:
The expansion of private labels, or store brands, has transformed consumer
choice sets and competition in retail markets, prompting manufacturers to
fight back with renewed pricing and product and promotion strategies to
forestall further private label expansion. This article examines the
spillover effects of television advertising on brand-level consumer demand
for carbonated soft drinks (CSDs), including private labels, using a
random coefficients logit model with household purchasing and advertising
viewing Nielsen data. As in previous work, we find that although brand
spillover effects significantly increase demand for CSD brands in the same
company and undermine demand facing other manufacturers' CSD brands,
surprisingly, there are positive spillover effects on the
demand for private label brands. This indicates that brand advertising is
persuasive with respect to manufacturers' brands but complementary with
respect to private labels. Further results show that eliminating
television advertising for CSDs would lower aggregate CSD sales as
consumers migrate to other beverages, although private labels stand to
gain, particularly Wal-Mart brands.
Journal: Applied Economics
Pages: 2563-2576
Issue: 25
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2014.1002899
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002899
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Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2563-2576
Template-Type: ReDIF-Article 1.0
Author-Name: M. V. Esteban
Author-X-Name-First: M. V.
Author-X-Name-Last: Esteban
Author-Name: E. Ferreira
Author-X-Name-First: E.
Author-X-Name-Last: Ferreira
Author-Name: S. Orbe-Mandaluniz
Author-X-Name-First: S.
Author-X-Name-Last: Orbe-Mandaluniz
Title: Nonparametric methods for estimating and testing for constant betas in asset pricing models
Abstract:
In this article, we study the performance of a smoothing spline method in
estimating and testing for constant betas in two well-known asset pricing
models, the usual market model and the three-factor model. The spline
estimator is computed taking into account the conditional
heteroscedasticity of the errors. Using the right model and estimation
procedure for the variance term plays a crucial role in gaining efficiency
in beta estimators. A simulation study shows the good performance of our
method; in all the scenarios simulated, it outperforms the benchmark
rolling estimator. The method enables users to obtain confidence intervals
and to test for the significance and constancy of betas. Finally, the
method is applied to US data, comprising 25 portfolios formed based on
size and the ratio of book equity to market equity. The results show that
the time-variability of the betas plays an important role, mainly when
sensitivity to the HML factor is considered.
Journal: Applied Economics
Pages: 2577-2607
Issue: 25
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005812
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005812
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Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2577-2607
Template-Type: ReDIF-Article 1.0
Author-Name: Bing Xu
Author-X-Name-First: Bing
Author-X-Name-Last: Xu
Title: Oil prices and UK industry-level stock returns
Abstract:
In this article, we study whether the behaviour of oil prices can be used
as a reliable predictor for the disaggregated industry-level stock market
indices. We find strong evidence for the relevance of changes in oil price
as a predictor for the returns of UK industry portfolios, while this
relevance is heterogeneous across industries. In an out-of-sample
framework, we find that both the contemporaneous and lagged oil price
changes do predict UK industry stock market returns. The predictive power
is more transient for the latter case, and mostly appearing after allowing
for time variation in the relative performance. In addition, we find some
evidence of asymmetry in the oil-stock price relationships.
Journal: Applied Economics
Pages: 2608-2627
Issue: 25
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008760
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008760
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Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2608-2627
Template-Type: ReDIF-Article 1.0
Author-Name: Abdur R. Chowdhury
Author-X-Name-First: Abdur R.
Author-X-Name-Last: Chowdhury
Author-Name: Mark Wheeler
Author-X-Name-First: Mark
Author-X-Name-Last: Wheeler
Title: The impact of output and exchange rate volatility on fixed private investment: evidence from selected G7 countries
Abstract:
This study examines the impact of shocks to exchange rate and output
uncertainty (volatility) on real private fixed investment (FI) in Canada,
Germany, the United Kingdom and the United States. The analysis is
conducted using vector autoregressive models that contain the price level,
real output, the volatility of real output, the real exchange rate, the
volatility of the real exchange rate, an interest rate and FI. The results
yield important public policy implications with regard to the impact of
output volatility of FI. Our analysis indicates that volatility shocks,
measured as output volatility or exchange rate volatility, do not have a
significant impact on FI for any country in our study.
Journal: Applied Economics
Pages: 2628-2641
Issue: 25
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008761
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008761
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Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2628-2641
Template-Type: ReDIF-Article 1.0
Author-Name: F. Chan
Author-X-Name-First: F.
Author-X-Name-Last: Chan
Author-Name: G. MacDonald
Author-X-Name-First: G.
Author-X-Name-Last: MacDonald
Title: Permanent and transitory shocks in the presence of asymmetric error correction
Abstract:
This article highlights the potential importance of asymmetries in the
loading vector of a set of cointegrated variables for the construction,
analysis and interpretation of permanent and transitory shocks using
impulse response functions. We derive an asymmetric version of the
Permanent-Transitory decomposition suggested by Gonzalo and Ng (2001) and
illustrate the potential importance of such asymmetries using the 'cay'
data of Lettau and Ludvigson (2004).
Journal: Applied Economics
Pages: 2642-2648
Issue: 25
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008765
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008765
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Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2642-2648
Template-Type: ReDIF-Article 1.0
Author-Name: Annari De Waal
Author-X-Name-First: Annari
Author-X-Name-Last: De Waal
Author-Name: Rene頖an Eyden
Author-X-Name-First: Rene頍
Author-X-Name-Last: Van Eyden
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Do we need a global VAR model to forecast inflation and output in South Africa?
Abstract:
This study determines whether the global vector autoregressive (GVAR)
approach provides better forecasts of key South African variables than a
vector error correction model (VECM) and a Bayesian vector autoregressive
(BVAR) model augmented with foreign variables. The article considers both
a small GVAR model and a large GVAR model in determining the most
appropriate model for forecasting South African variables. We compare the
recursive out-of-sample forecasts for South African GDP and inflation from
six types of models: a general 33 country (large) GVAR, a customized small
GVAR for South Africa, a VECM for South Africa with weakly exogenous
foreign variables, a BVAR model, autoregressive (AR) models and random
walk models. The results show that the forecast performance of the large
GVAR is generally superior to the performance of the customized small GVAR
for South Africa. The forecasts of both the GVAR models tend to be better
than the forecasts of the augmented VECM, especially at longer forecast
horizons. Importantly, however, on average, the BVAR model performs the
best when it comes to forecasting output, while the AR(1) model
outperforms all the other models in predicting inflation. We also conduct
ex ante forecasts from the BVAR and AR(1) models over
2010:Q1-2013:Q4 to highlight their ability to track turning points in
output and inflation, respectively.
Journal: Applied Economics
Pages: 2649-2670
Issue: 25
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1008769
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008769
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Handle: RePEc:taf:applec:v:47:y:2015:i:25:p:2649-2670
Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Title: Reactions of real yields and inflation expectations to forward guidance in the United States
Abstract:
We study the impact of forward policy rate guidance by the Federal
Reserve's Federal Open Market Committee (FOMC) used as an unconventional
monetary policy tool at the zero lower bound of the policy rate on real
and breakeven US Treasury yield curves. We find that explicit FOMC policy
rate guidance announcements led to a significant reduction in real yields
at horizons of 2 to 5 years ahead. By contrast, long-term breakeven
inflation rates were little affected, suggesting that inflation
expectations have remained well anchored, and that explicit FOMC policy
rate guidance has not adversely affected central bank credibility.
Journal: Applied Economics
Pages: 2671-2682
Issue: 26
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1008759
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008759
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Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2671-2682
Template-Type: ReDIF-Article 1.0
Author-Name: Chunding Li
Author-X-Name-First: Chunding
Author-X-Name-Last: Li
Author-Name: John Whalley
Author-X-Name-First: John
Author-X-Name-Last: Whalley
Title: Chinese firm and industry reactions to antidumping initiations and measures
Abstract:
China has been the subject of large numbers of both antidumping
initiations and measures. This article explores the reactions of Chinese
firms and industries to these actions by using dynamic system GMM
estimator and industrial panel data on all Chinese firms in the industry,
foreign firms operating within China and state-owned enterprises (SOEs)
for aggregated firms group between 1997 and 2007. We find that antidumping
actions by developed and developing countries negatively impact industrial
profits and employee and firm numbers and also exports, but improve labour
productivity. We also find that different kinds of firms show different
responses. All firms together in an industry react to antidumping the
most, and foreign and SOE firms show a much smaller response. Further,
antidumping effects from different countries are different. Developed
countries' antidumping actions have more negative impact than developing
countries' actions; the effects of US actions are different from the
European Union's.
Journal: Applied Economics
Pages: 2683-2698
Issue: 26
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1008772
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008772
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Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2683-2698
Template-Type: ReDIF-Article 1.0
Author-Name: Rina Rosenblatt-Wisch
Author-X-Name-First: Rina
Author-X-Name-Last: Rosenblatt-Wisch
Author-Name: Rolf Scheufele
Author-X-Name-First: Rolf
Author-X-Name-Last: Scheufele
Title: Quantification and characteristics of household inflation expectations in Switzerland
Abstract:
Inflation expectations are a key variable in conducting monetary policy.
However, these expectations are generally unobservable and only certain
proxy variables exist, such as surveys on inflation expectations. This
article offers guidance on the appropriate quantification of household
inflation expectations in the Swiss Consumer Survey, where answers are
qualitative in nature. We apply and evaluate different variants of the
probability approach and the regression approach; we demonstrate that
models that include answers on perceived inflation and allow for
time-varying response thresholds yield the best results; and we show why
the originally proposed approach of Fluri and Spörndli (1987) has resulted
in heavily biased inflation expectations since the mid-1990s. Furthermore,
we discuss some of the key features of Swiss household inflation
expectations, i.e. the fact that there has been a shift in expectation
formation since 2000 (expectations are better anchored and less adaptive,
and there is lower disagreement of expectations). We suggest that this may
be linked to the Swiss National Bank's adjustment of its monetary policy
framework around this time. In addition, we outline how expectation
formation in Switzerland is in line with the sticky information model,
where information disseminates slowly from professional forecasters to
households.
Journal: Applied Economics
Pages: 2699-2716
Issue: 26
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1008773
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008773
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Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2699-2716
Template-Type: ReDIF-Article 1.0
Author-Name: Mareva Sabatier
Author-X-Name-First: Mareva
Author-X-Name-Last: Sabatier
Title: A women's boom in the boardroom: effects on performance?
Abstract:
This article analyses whether improving gender diversity in boardrooms
improves firms' economic performance. In the context of French
CAC40-listed companies between 2008 and 2012, this research uses
instrumental variable panel regressions, including production frontier
estimates, to arrive at two key results. First, gender diversity in boards
depends on firms' attributes including their previous gender promotion
strategies. Second, promoting women in boardrooms has a significant and
positive effect on economic performance while accounting for the
endogeneity boards' gender diversity. Gender diversity even reduces
corporate inefficiencies and enables firms to come closer to their optimal
performance.
Journal: Applied Economics
Pages: 2717-2727
Issue: 26
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1008774
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008774
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Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2717-2727
Template-Type: ReDIF-Article 1.0
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Author-Name: Lavinia Mustea
Author-X-Name-First: Lavinia
Author-X-Name-Last: Mustea
Title: A fresh look at fiscal multipliers: one size fits it all? Evidence from the Mediterranean area
Abstract:
Following the adoption of important fiscal stimuli to fight the recent
crisis, a large literature estimated fiscal multipliers. Focusing on an
area particularly appealing, given its diversity and the diversity of the
response of countries that compose it to the current crisis, namely the
Mediterranean area, we unveil major disparities regarding the
significance, sign and size of fiscal multipliers depending mainly on the
economic characteristics, the type of multiplier, the time span and the
type of fiscal stimulus. Evidence of such important heterogeneities
highlights the need for better cooperation among countries, particularly
regarding the design of fiscal policy. Failing to do so might divert
public resources to ineffective fiscal policies in some countries, or, on
the contrary, deprive other countries of potentially high benefits of
appropriate fiscal policies, including a reliable tool for exiting the
current crisis.
Journal: Applied Economics
Pages: 2728-2744
Issue: 26
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1008775
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008775
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Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2728-2744
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Czudaj
Author-X-Name-First: Robert
Author-X-Name-Last: Czudaj
Author-Name: Jan Prüser
Author-X-Name-First: Jan
Author-X-Name-Last: Prüser
Title: International parity relationships between Germany and the USA revisited: evidence from the post-DM period
Abstract:
In this study, we show the interrelation of the purchasing power parity
and the uncovered interest rate parity between the US and Germany for the
recent period running from 1999:01 to 2014:04. This study extends the
literature by testing both hypotheses simultaneously in a multivariate
ECM. This has the advantage that interactions between capital and goods
markets can be considered simultaneously. Our finding of two long-run
relationships between the variables shows that a disequilibrium in one of
the two markets leads to a disequilibrium in the other. While analysing
the reaction to cumulative shocks, we show that US variables have a
greater impact on German variables than vice versa. Therefore, the rising
importance of the euro and the increased integration of the European Union
in the recent decade have not changed this relation.
Journal: Applied Economics
Pages: 2745-2767
Issue: 26
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1008776
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008776
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Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2745-2767
Template-Type: ReDIF-Article 1.0
Author-Name: Torun Fretheim
Author-X-Name-First: Torun
Author-X-Name-Last: Fretheim
Author-Name: Glenn Kristiansen
Author-X-Name-First: Glenn
Author-X-Name-Last: Kristiansen
Title: Commodity market risk from 1995 to 2013: an extreme value theory approach
Abstract:
In this article we examine whether extreme risk has increased in the
agricultural commodity market during the period 1995-2013. We add to the
literature on food price volatility by analysing the tail segment of
futures price return distributions. Food price variability is a concern
for governments and regulators worldwide, as most nations trade in food.
High food price variability can contribute to poverty and malnourishment,
in particular for people in less economically developed economies. We find
no indications of systematically increasing tail-risk for the commodities
in our sample. Analysis of estimated shape-parameters of the Generalized
Extreme Value distribution further supports the conclusion that there is
no general systematic change in the extreme risk associated with these
commodity investments.
Journal: Applied Economics
Pages: 2768-2782
Issue: 26
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011307
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011307
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Handle: RePEc:taf:applec:v:47:y:2015:i:26:p:2768-2782
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos P. Barros
Author-X-Name-First: Carlos P.
Author-X-Name-Last: Barros
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: João Ricardo Faria
Author-X-Name-First: João Ricardo
Author-X-Name-Last: Faria
Title: The macroeconomy of Angola: breaks and persistence in Angolan macro data
Abstract:
Using long-range dependence techniques we examine the order of integration
of Angola's macro variables from a fractional viewpoint. Based on a small
open economy model, the series examined are money reserves, credit, money
supply, lending rate, exchange rates, CPI, GDP, oil revenues and
government expenditure, for the period of January 2000 to December 2013.
The results suggest that the variables are nonstationary with orders of
integration equal to or higher than 1 suggesting nonmean-reverting
behaviour. Structural breaks reveal that the series reflect the IMF
intervention in Angola in 2003 to control inflation. Policy implications
are derived.
Journal: Applied Economics
Pages: 2783-2802
Issue: 27
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2014.997928
File-URL: http://hdl.handle.net/10.1080/00036846.2014.997928
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Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2783-2802
Template-Type: ReDIF-Article 1.0
Author-Name: Xin Wan
Author-X-Name-First: Xin
Author-X-Name-Last: Wan
Author-Name: Yuanyuan Ma
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Ma
Author-Name: Kezhong Zhang
Author-X-Name-First: Kezhong
Author-X-Name-Last: Zhang
Title: Political determinants of intergovernmental transfers in a regionally decentralized authoritarian regime: evidence from China
Abstract:
This article examines the political determinants of the allocation of
intergovernmental transfers in the context of China. In a regionally
decentralized authoritarian regime, a government marked by political
centralization and fiscal decentralization, intergovernmental transfers
are employed by politicians as instruments to achieve political goals.
Using China's provincial data from 1994 to 2009, we find that the
officials' political power is an important factor in the distribution
process. A party secretary's replacement facilitates an increase in
transfers, especially if the replacement comes from the central
government. If a party secretary is a member of the Central Politburo, the
province receives more conditional transfers than others. The central
government allocates the transfers in such a way that the province with a
high proportion of the minority population receives more transfers than
others.
Journal: Applied Economics
Pages: 2803-2820
Issue: 27
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1008768
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1008768
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Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2803-2820
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Fung
Author-X-Name-First: Scott
Author-X-Name-Last: Fung
Author-Name: Shih-Chuan Tsai
Author-X-Name-First: Shih-Chuan
Author-X-Name-Last: Tsai
Title: Stock market-driven investment: new evidence on information, financing and agency effects
Abstract:
This study provides a theoretical model and empirical analysis to jointly
examine the information, financing and agency effects, the three channels
through which the stock market can actively influence corporate investment
decisions and firm performance. First, stock market affects corporate
investments, and such impact varies with different market valuation
measures, types of investments and firm characteristics. Second, stock
market valuation affects investments through the channel of corporate
financing, supporting the financing hypothesis. Third, stock market-driven
investments have differential impacts on the future operating performance
of firms. Investments driven by market valuation of firm-specific
information have a positive effect on future performance. In contrast,
investments driven by market-wide sentiment have a negative effect on
future performance. Fourth, consistent with the information hypothesis,
market-driven investments are value-enhancing for firms with better
external monitoring by analysts and institutional investors. Lastly,
consistent with the agency hypothesis, market-driven investments are
value-destroying when firms lack external monitoring, proper managerial
incentives and independent board of directors.
Journal: Applied Economics
Pages: 2821-2843
Issue: 27
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011306
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011306
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Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2821-2843
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin R. Auer
Author-X-Name-First: Benjamin R.
Author-X-Name-Last: Auer
Title: Superstitious seasonality in precious metals markets? Evidence from GARCH models with time-varying skewness and kurtosis
Abstract:
In this article, we analyse whether the Friday the 13th effect documented
by Kolb and Rodriguez (1987) can be observed in precious metals markets.
Specifically, we use dummy-augmented GARCH models to investigate the
impact of this specific calendar day on the conditional means of gold,
silver, palladium and platinum returns. The specification of the GARCH
model follows a flexible class recently proposed by Let al. (2005)
that incorporates time-varying skewness and kurtosis by applying a
Gram-Charlier series expansion of the normal density function. Our results
for the period from July 1996 to August 2013 provide three important
insights. First, there is no evidence that human superstition regarding
bad luck Fridays affects precious metals markets in a negative way, i.e.
returns on Fridays the 13th are not significantly lower than on regular
Fridays. Second, besides showing robustness in a variety of settings, we
can confirm this main result in a sensitivity check, where we replace the
dummy variables by a new measure of investor attention, recently promoted
by Da et al. (2011), that is based on Google search volumes. Third, as an
important by-product of our study, we can show that there is significant
evidence of time-varying skewness and kurtosis in precious metals returns.
Journal: Applied Economics
Pages: 2844-2859
Issue: 27
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011308
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011308
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Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2844-2859
Template-Type: ReDIF-Article 1.0
Author-Name: A. Leonhardt
Author-X-Name-First: A.
Author-X-Name-Last: Leonhardt
Author-Name: A. W. Rathgeber
Author-X-Name-First: A. W.
Author-X-Name-Last: Rathgeber
Author-Name: J. Stadler
Author-X-Name-First: J.
Author-X-Name-Last: Stadler
Author-Name: S. Stöckl
Author-X-Name-First: S.
Author-X-Name-Last: Stöckl
Title: Pricing fx forwards in OTC markets - new evidence for the pricing mechanism when faced with counterparty risk
Abstract:
By using daily foreign exchange (fx) market data for five major currency
pairs, this article shows that, especially since the beginning of the
financial crisis, pricing of fx forwards has not matched the pricing
formula derived from the covered interest rate parity (CIP). This
corresponds to previous empirical results. Therefore, the CIP leads to
systematic over- or underpricing. Overall, four statistically significant
explanatory factors for this systematic over- or underpricing have been
identified - the volatility in the difference between the interest rate
levels, the spot price, the fx forward spread and the counterparty risk.
In particular, the high significance of the counterparty risk demonstrates
that pricing models for fx forwards should be reviewed.
Journal: Applied Economics
Pages: 2860-2877
Issue: 27
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011309
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011309
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Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2860-2877
Template-Type: ReDIF-Article 1.0
Author-Name: Roselyne Joyeux
Author-X-Name-First: Roselyne
Author-X-Name-Last: Joyeux
Author-Name: George Milunovich
Author-X-Name-First: George
Author-X-Name-Last: Milunovich
Title: Speculative bubbles, financial crises and convergence in global real estate investment trusts
Abstract:
We test for price bubbles in 14 national real estate investment trust
(REIT) markets, and measure the degree of their convergence towards a
common trend. Our methodology consists of the recently developed test of
Phillips, Shi and Yu (2014) for mildly explosive processes, and the
Phillips and Sul (2007) method for modelling convergence among random
variables. We find evidence of explosive behaviour in index levels of
seven of the 14 markets. In contrast, explosive dynamics are found in only
one price/dividend ratio. More than half of the episodes of explosive
behaviour are date-stamped to periods prior to the 2007-2009 financial
crisis. We also discover a number of periods over which the markets
converge towards a common trend. Interestingly, all of the convergence
intervals coincide either with periods of crisis, or with periods of
market exuberance. For instance, evidence of convergence is found during
the 2000 dot-com crash, the 2007-2009 subprime crisis and the 2010-2013
European sovereign debt crisis, as well as over the bubble period of
2004-2005.
Journal: Applied Economics
Pages: 2878-2898
Issue: 27
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011310
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011310
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Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2878-2898
Template-Type: ReDIF-Article 1.0
Author-Name: Wu-Yueh Hu
Author-X-Name-First: Wu-Yueh
Author-X-Name-Last: Hu
Title: The role of risk and risk-aversion in adoption of alternative marketing arrangements by the US farmers
Abstract:
The objective of this article is to analyse the relationship between
farmers' risk-aversions and the riskiness of various agricultural
enterprises to see which marketing arrangements would typically emerge.
Relying on the basic agency theory model, we hypothesize the prevalence of
alternative marketing arrangements (AMAs) in situations with high
risk-averse farmers and high-risk enterprises and the prevalence of spot
(cash) markets for low risk-averse participants and less risky
enterprises. Our empirical tests are carried out using the 2004
Agricultural Resource Management Survey (ARMS). The empirical results are
largely supportive of the agency theory of contract choice.
Journal: Applied Economics
Pages: 2899-2912
Issue: 27
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011311
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011311
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Handle: RePEc:taf:applec:v:47:y:2015:i:27:p:2899-2912
Template-Type: ReDIF-Article 1.0
Author-Name: Anis Omri
Author-X-Name-First: Anis
Author-X-Name-Last: Omri
Author-Name: Saida Daly
Author-X-Name-First: Saida
Author-X-Name-Last: Daly
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Title: A robust analysis of the relationship between renewable energy consumption and its main drivers
Abstract:
We provide a comprehensive and robust analysis of the drivers of renewable
energy consumption for a panel of 64 countries, using both the static
(Pooled OLS, Panel Fixed and Random Effects) and dynamic (difference and
system GMM) panel data estimation approaches. We show that the dynamic
panel data model provides more efficient estimators than the static ones
and that increases in per capita CO2 emissions and per capita
trade with foreign partners mainly drive the changes in per capita
renewable energy consumption. We also find limited evidence of oil price
effects on renewable energy consumption, which reflects the fact that
renewable energy is just a complement and not a perfect substitute of
crude oil, at least in the short run.
Journal: Applied Economics
Pages: 2913-2923
Issue: 28
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011312
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011312
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Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2913-2923
Template-Type: ReDIF-Article 1.0
Author-Name: Seeun Jung
Author-X-Name-First: Seeun
Author-X-Name-Last: Jung
Title: Does education affect risk aversion? Evidence from the British education reform
Abstract:
Individual risk attitudes are frequently used to predict decisions
regarding education. However, using risk attitudes as a control variable
for decisions about education has been criticized because of the potential
for reverse causality. Causality between risk aversion and education is
unclear, and disentangling the different directions it may run is
difficult. In this study, we make the first attempt to investigate the
causal effects of education on risk aversion by examining the British
education reform of 1972, which increased the duration of compulsory
schooling from age 15 to age 16. Using regression discontinuity design, we
find that this additional year of schooling increases the level of risk
aversion, which is contrary to previous findings in the literature, and we
also find that this result is particularly strong for individuals with
less education. This positive causal effect of education on risk aversion
might alleviate concerns regarding the endogeneity/reverse causality issue
when using risk aversion as an explanatory variable for decisions about
education; the sign would remain credible because the coefficients are
underestimated.
Journal: Applied Economics
Pages: 2924-2938
Issue: 28
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011313
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011313
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Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2924-2938
Template-Type: ReDIF-Article 1.0
Author-Name: Barry R. Chiswick
Author-X-Name-First: Barry R.
Author-X-Name-Last: Chiswick
Author-Name: Nicholas Larsen
Author-X-Name-First: Nicholas
Author-X-Name-Last: Larsen
Author-Name: Paul Pieper
Author-X-Name-First: Paul
Author-X-Name-Last: Pieper
Title: The awarding of PhDs in the United States and Canada: war, the draft and other economic determinants
Abstract:
This article is concerned with the awarding of PhDs in the USA and Canada
in the post-WW II period, overall, by gender and major academic
discipline. The effects of the explanatory variables lagged by
6 years, to allow for time-to-degree completion, are consistent with
the model. Military conscription with educational exemptions and the
Vietnam War increased male PhDs in the USA, but, as expected, had no
effect for US females or in Canada. This suggests that the war and draft
effect for US males were not reflecting other unmeasured North American
effects. Government expenditures on research and development enhanced the
PhD production, especially for males and in the physical sciences. The
cyclical indicator, the adult male unemployment rate, has a weak positive
effect for males in both the USA and Canada, suggesting that during the
post-WW II period, the positive effect on graduate-level education of the
reduced opportunity cost of time due to a recession was stronger than the
negative wealth effect of the recession. Other variables the same, there
has been an increase over time in the female receipts of the PhD, but
there is no such trend for males. While males still receive more PhDs per
year than females, the gender gap has decreased over time.
Journal: Applied Economics
Pages: 2939-2958
Issue: 28
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011314
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011314
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Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2939-2958
Template-Type: ReDIF-Article 1.0
Author-Name: Don U. A. Galagedera
Author-X-Name-First: Don U. A.
Author-X-Name-Last: Galagedera
Author-Name: John Watson
Author-X-Name-First: John
Author-X-Name-Last: Watson
Title: Benchmarking superannuation funds based on relative performance
Abstract:
In this article, we assess fund performance using data envelopment
analysis (DEA). For each inefficient fund, DEA provides a set of role
model funds whose best practices may be emulated for performance
improvement. We find that the role models of most inefficient funds
consist entirely of funds different from their own type. To overcome this
situation, we suggest a multi-step DEA procedure. The procedure starts by
categorizing funds on a hierarchical basis. We establish the hierarchy
based on the frequency of efficient funds that belong to each fund type.
Thereafter, a set of role model funds for each inefficient fund is found
by pooling the funds in its own category and the funds that belongs to the
categories at the lower levels in the hierarchy and applying DEA. This
procedure is repeated by augmenting the pool with funds at the next higher
level and so on until all the sampled funds are included. At each step, a
set of role models is identified. An inefficient fund can thus reach the
efficient frontier in stages. Statistical evidence suggests that
membership and proportion of risky assets may have a negative association,
and the fund size may have a positive association with fund performance.
Journal: Applied Economics
Pages: 2959-2973
Issue: 28
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011315
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011315
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Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2959-2973
Template-Type: ReDIF-Article 1.0
Author-Name: Aymen Belgacem
Author-X-Name-First: Aymen
Author-X-Name-Last: Belgacem
Author-Name: Anna Creti
Author-X-Name-First: Anna
Author-X-Name-Last: Creti
Author-Name: Khaled Guesmi
Author-X-Name-First: Khaled
Author-X-Name-Last: Guesmi
Author-Name: Amine Lahiani
Author-X-Name-First: Amine
Author-X-Name-Last: Lahiani
Title: Volatility spillovers and macroeconomic announcements: evidence from crude oil markets
Abstract:
The paper applies an event study methodologyaims to investigate the
macroeconomic announcements effects on Standard&Poor's500 and oil prices.
Our results provide evidence for a significant impact of the US
macroeconomic news on oil prices. This impact is split into two
components, namely the direct effect (common response) and indirect effect
(volatility transmission). Altogether our results show that the volatility
transmission is bidirectional. Not only a significant volatility
transmission from the oil market to the US stock market is revealed, but
also a high volatility transmission is recorded from the oil market to the
stock market especially after the release of consumption indicators.
Journal: Applied Economics
Pages: 2974-2984
Issue: 28
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011316
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011316
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Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2974-2984
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Anandamayee Majumdar
Author-X-Name-First: Anandamayee
Author-X-Name-Last: Majumdar
Author-Name: Stephen M. Miller
Author-X-Name-First: Stephen M.
Author-X-Name-Last: Miller
Title: Was the recent downturn in US real GDP predictable?
Abstract:
This article uses a small set of variables - real GDP, the inflation rate
and the short-term interest rate - and a rich set of models - atheoretical
(time series) and theoretical (structural), linear and nonlinear, as well
as classical and Bayesian models - to consider whether we could have
predicted the recent downturn of the US real GDP. Comparing the
performance of the models to the benchmark random-walk model by root
mean-square errors, the two structural (theoretical) models, especially
the nonlinear model, perform well on average across all forecast horizons
in our ex post, out-of-sample forecasts, although at
specific forecast horizons certain nonlinear atheoretical models perform
the best. The nonlinear theoretical model also dominates in our ex
ante, out-of-sample forecast of the Great Recession, suggesting
that developing forward-looking, microfounded, nonlinear, dynamic
stochastic general equilibrium models of the economy may prove crucial in
forecasting turning points.
Journal: Applied Economics
Pages: 2985-3007
Issue: 28
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011317
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011317
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Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2985-3007
Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Curi
Author-X-Name-First: Claudia
Author-X-Name-Last: Curi
Author-Name: Cinzia Daraio
Author-X-Name-First: Cinzia
Author-X-Name-Last: Daraio
Author-Name: Patrick Llerena
Author-X-Name-First: Patrick
Author-X-Name-Last: Llerena
Title: The productivity of French technology transfer offices after government reforms
Abstract:
This article assesses the productivity change of the French technology
transfer offices (TTOs) after the introduction of the July 1999 innovation
law and the new public management oriented reform. By using Data
Envelopment Analysis (DEA)-based Malmquist productivity index, we find an
average increase in the short-term productivity of the French TTOs driven
by both positive efficiency and technology change. The bootstrap analysis
reveals that these improvements are ascribed to 50% of the TTO systems,
while the remaining part does not show significant changes. Moreover,
while older TTOs positively contribute to the performance of French TTOs
in the short run, young TTOs with hospital seem to contribute negatively
to the efficiency of the entire system.
Journal: Applied Economics
Pages: 3008-3019
Issue: 28
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011318
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011318
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Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:3008-3019
Template-Type: ReDIF-Article 1.0
Author-Name: Qi He
Author-X-Name-First: Qi
Author-X-Name-Last: He
Author-Name: Hong Fang
Author-X-Name-First: Hong
Author-X-Name-Last: Fang
Author-Name: Miao Wang
Author-X-Name-First: Miao
Author-X-Name-Last: Wang
Author-Name: Bo Peng
Author-X-Name-First: Bo
Author-X-Name-Last: Peng
Title: Trade liberalization and trade performance of environmental goods: evidence from Asia-Pacific economic cooperation members
Abstract:
In this article, we study the impact of trade liberalization, including
reductions in both tariff and nontariff trade barriers, on environmental
goods (EGs) exports. Using bilateral trade data from 20 Asia-Pacific
Economic Cooperation members, we find that tariff reduction in an
exporting country has a larger positive impact on its exports of EGs than
tariff reduction in an importing country. Our results also show that a
lower nontariff barrier in an importing country increases its imports of
EGs. A considerable amount of heterogeneity also exists in subsample
results based on countries' income levels.
Journal: Applied Economics
Pages: 3021-3039
Issue: 29
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011319
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011319
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Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3021-3039
Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Mothe
Author-X-Name-First: Caroline
Author-X-Name-Last: Mothe
Author-Name: Uyen T. Nguyen-Thi
Author-X-Name-First: Uyen T.
Author-X-Name-Last: Nguyen-Thi
Author-Name: Phu Nguyen-Van
Author-X-Name-First: Phu
Author-X-Name-Last: Nguyen-Van
Title: Assessing complementarity in organizational innovations for technological innovation: the role of knowledge management practices
Abstract:
We empirically investigate the pattern of complementarity among four
organizational practices. Firm-level data were drawn from the Community
Innovation Survey, carried out in Luxembourg. Supermodularity tests
confirm the crucial role of organizational innovation in raising firms'
technological innovation. The pattern of complementarity across
organizational practices differs according to the type of innovation (i.e.
product or process), as well as according to whether the firm is in the
first stage of its innovation process (i.e. being innovative or not) or in
a later stage (i.e. sales of new products).
Journal: Applied Economics
Pages: 3040-3058
Issue: 29
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011320
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011320
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Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3040-3058
Template-Type: ReDIF-Article 1.0
Author-Name: B. Faye
Author-X-Name-First: B.
Author-X-Name-Last: Faye
Author-Name: E. Le Fur
Author-X-Name-First: E.
Author-X-Name-Last: Le Fur
Author-Name: S. Prat
Author-X-Name-First: S.
Author-X-Name-Last: Prat
Title: Dynamics of fine wine and asset prices: evidence from short- and long-run co-movements
Abstract:
This article examines short- and long-term price linkages among the
majority of fine wine and equity markets over the period of 2003 to 2012.
We do not consider the price index (LIV-EX 100 or 500), as is typically
undertaken in previous studies, but rather examine the auction price
series of the world's most traded wine-vintage pairs (5 Bordeaux first
growth, 8 Bordeaux second growth, 5 Burgundy, 3 Rhone, 4 Italian, 5
Californian, 1 Australian and 1 Portuguese). A global equity index is also
included using the Morgan Stanley Capital International World.
Cointegration procedures, the Granger non-causality test, and ECM are used
to analyse short- and long-run relationships among these markets. The
results indicate a strong effect of financial markets on wine prices and
short-term causality for certain wines. Moreover, the findings indicate
short-run causality between the wines themselves, revealing a leader
(exogenous) or follower (endogenous) status of certain fine wines in price
dynamics, and also long-run causality for endogenous wines. This approach
is relevant to portfolio diversification strategies and allows price
movements to be anticipated more accurately than using an index approach.
Journal: Applied Economics
Pages: 3059-3077
Issue: 29
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011321
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011321
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Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3059-3077
Template-Type: ReDIF-Article 1.0
Author-Name: Hem C. Basnet
Author-X-Name-First: Hem C.
Author-X-Name-Last: Basnet
Author-Name: Kamal P. Upadhyaya
Author-X-Name-First: Kamal P.
Author-X-Name-Last: Upadhyaya
Title: Impact of oil price shocks on output, inflation and the real exchange rate: evidence from selected ASEAN countries
Abstract:
This article analyses the impact of oil price shocks on real output,
inflation and the real exchange rate in Thailand, Malaysia, Singapore, the
Philippines and Indonesia (ASEAN-5) using a Structural VAR model. The
cointegration tests indicate that the macroeconomic variables of these
countries are cointegrated and share common trends in the long run. The
impulse response functions reveal that oil price fluctuations do not
impact the ASEAN-5 economies in the long run and much of its effect is
absorbed within five to six quarters. The variance decomposition results
further assert that with a few exceptions oil price shocks do not explain
a significant variation in any of the variables under consideration. We
also identify a very unique pattern of response to oil price fluctuations
between Malaysia and Singapore and between the Philippines and Thailand.
The pairs exhibit a high degree of similarity in their responses; they do
not share any commonalities across the group.
Journal: Applied Economics
Pages: 3078-3091
Issue: 29
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011322
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011322
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Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3078-3091
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner
Author-X-Name-First: Joachim
Author-X-Name-Last: Wagner
Author-Name: John P. Weche Gelübcke
Author-X-Name-First: John P.
Author-X-Name-Last: Weche Gelübcke
Title: Access to finance, foreign ownership and foreign takeovers in Germany
Abstract:
With this article we present the first microeconometric analysis of the
impact of a foreign acquisition on the target firm's access to finance. By
using a large database of German firms, we furthermore investigate for the
first time the link between foreign ownership and access to finance in
Germany, one of the world's leading target countries for FDI. We use newly
available comprehensive panel data that we constructed from information
collected by the German statistical offices and from credit rating scores
supplied by the leading German credit rating agency. We find foreign-owned
firms in German manufacturing on average to show slightly more financing
restrictions than domestically owned enterprises, but this very small
difference diminishes once unobserved heterogeneity is taken into account.
We further demonstrate that one reason for this finding is the preference
of foreign investors for targets with relatively low credit-worthiness.
Although the likelihood of a foreign acquisition appears to be correlated
with credit rating, there is no impact of foreign takeovers on the credit
constraints of the target firms ex post and therefore no
support for the hypothesis that foreign takeovers ease financial
frictions.
Journal: Applied Economics
Pages: 3092-3112
Issue: 29
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011323
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011323
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Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3092-3112
Template-Type: ReDIF-Article 1.0
Author-Name: Jingjing Zhang
Author-X-Name-First: Jingjing
Author-X-Name-Last: Zhang
Author-Name: Partha Gangopadhyay
Author-X-Name-First: Partha
Author-X-Name-Last: Gangopadhyay
Title: Dynamics of environmental quality and economic development: the regional experience from Yangtze River Delta of China
Abstract:
This article investigates the dynamic relationship between economic
progress and environmental quality at a regional level. An important
economic intuition in this context is that environmental degradation will
be limited by human behaviour if costs and benefits of such degradation
are local since economic agents will then be incentivized to choose
appropriate corrective action. Therefore, we note the likelihood that
regional economic development can help regions 'grow out of' environmental
problems. Using a new data set from Yangtze River Delta of China, we find
a strong confirmation of the intuition that human can and will resolve the
environmental problem by altering the damaging behaviour of economic
agents. A very interesting finding of this study is that the relationship
between environmental quality and economic progress measured by per capita
income can display a wave-like function in the case of water pollution, as
opposed to the much dramatized environmental Kuznets curve, with
significant policy implications.
Journal: Applied Economics
Pages: 3113-3123
Issue: 29
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011324
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011324
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Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3113-3123
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Damette
Author-X-Name-First: Olivier
Author-X-Name-Last: Damette
Author-Name: St鰨ane Goutte
Author-X-Name-First: St鰨ane
Author-X-Name-Last: Goutte
Title: Tobin tax and trading volume tightening: a reassessment
Abstract:
This article extends the previous literature on the Tobin tax. We find
that very roughly, a doubling in transaction costs would reduce trading
volume by 25% to 40% in the Forex. Most importantly, this article is the
first contribution to specify the trading volume of the Forex through
different (low and high volatility) regimes. Our results show evidence of
nonlinear patterns for trading volumes and transaction costs on the Forex.
Thus, the Tobin tax would not have a monotonic impact on trading activity
across market conditions. The change in elasticity between low and high
volatility regimes would be slight but significantly different. We may
suggest that the high-variance regime might be the fundamentalist regime
and the low-variance regime might be the chartist regime. It is a first
step towards understanding which categories of agents would react to the
introduction of a tax. Our results seem consistent with Tobin's underlying
thinking; since a tax would penalize chartists more than fundamentalists,
it could reduce exchange rate volatility.
Journal: Applied Economics
Pages: 3124-3141
Issue: 29
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1011325
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1011325
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Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3124-3141
Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Tanha
Author-X-Name-First: Hassan
Author-X-Name-Last: Tanha
Author-Name: Michael Dempsey
Author-X-Name-First: Michael
Author-X-Name-Last: Dempsey
Title: Do Aussie markets smile? Implied volatility functions and determinants
Abstract:
If options are correctly priced, the interpretation of volatility in the
Black-Scholes model (as identifying the volatility of the underlying
asset) is violated. The empirical relation between the model 'implied
volatility' and the degree to which the option is in-the-money (moneyness)
has been reported as resembling a U-shape (or 'smile') for options on
currencies (and more of a 'smirk' for options on equities). In this
article, using multivariate time-series analysis and employing an impulse
response function, we investigate the structural relationships and
dynamics of the volatility smile in relation to the option liquidity, key
features of the underlying asset and market momentum. Our findings confirm
evidence of a number of biases in the Black-Scholes model consistent with
Chou et al. (2011) in regard to liquidity in both the
underlying and the option itself, and with Peitalic>et al.
(1999) as to the importance of the option time to maturity. As well as
delineating such biases as they co-relate both with each other and with
the underlying asset volatility and momentum, we find that the pronounced
smile is related to the differential sensitivities of in-the-money and
out-of-the-money options, which itself suggests an explanation for the
characteristic smile shape.
Journal: Applied Economics
Pages: 3143-3163
Issue: 30
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1013606
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013606
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Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3143-3163
Template-Type: ReDIF-Article 1.0
Author-Name: Niels Hermes
Author-X-Name-First: Niels
Author-X-Name-Last: Hermes
Author-Name: Ernest Kihanga
Author-X-Name-First: Ernest
Author-X-Name-Last: Kihanga
Author-Name: Robert Lensink
Author-X-Name-First: Robert
Author-X-Name-Last: Lensink
Author-Name: Clemens Lutz
Author-X-Name-First: Clemens
Author-X-Name-Last: Lutz
Title: The determinants of trade credit use: the case of the Tanzanian rice market
Abstract:
Most small businesses in the developing economies suffer from a lack of
access to formal external finance. One important alternative source of
finance for these entrepreneurs is trade credit. Applying a unique
data-set containing data on specific trade relations between rice
wholesalers and rice retailers in Tanzania, we analyse the determinants of
trade credit demand and supply in this market, using a simultaneous
equation modelling approach. The analysis shows that while the demand for
trade credit is primarily determined by the extent to which retailers need
external funds, supply is mainly driven by wholesalers' incentives to
attract and keep clients. Moreover, wholesalers' willingness to provide
credit increases if they have better information about the possibility
that the customer will fail to repay the credit.
Journal: Applied Economics
Pages: 3164-3174
Issue: 30
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1013607
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013607
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Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3164-3174
Template-Type: ReDIF-Article 1.0
Author-Name: Svante Mandell
Author-X-Name-First: Svante
Author-X-Name-Last: Mandell
Author-Name: Mats Wilhelmsson
Author-X-Name-First: Mats
Author-X-Name-Last: Wilhelmsson
Title: Financial infrastructure and house prices
Abstract:
We argue that banks operating in a local market possess better information
about the local housing market than do nonlocal banks. Possessing this
information may influence their willingness to grant loans to house buyers
and the specifics of the loan terms, which in turn may affect house prices
because credit facilitation makes the housing market more efficient. Using
a panel data set covering a period from 1993 to 2007 and involving 274
municipalities in Sweden, we establish a positive causal influence of
local bank presence on local house prices. There are significant spatial
and spillover effects, that is, banks in a municipality affect the housing
markets in neighbouring municipalities, although to a lesser extent than
in their own municipality. Similar results are obtained through a gravity
model. The results are robust over time and municipality size.
Journal: Applied Economics
Pages: 3175-3188
Issue: 30
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1013608
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013608
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Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3175-3188
Template-Type: ReDIF-Article 1.0
Author-Name: Gil Cohen
Author-X-Name-First: Gil
Author-X-Name-Last: Cohen
Author-Name: Elinor Cabiri
Author-X-Name-First: Elinor
Author-X-Name-Last: Cabiri
Title: Can technical oscillators outperform the buy and hold strategy?
Abstract:
This study compares returns from the traditional buy and hold (B&H)
strategy to well-known technical oscillators applied to diverse indices
leading the global market (DJI, FTSE, NK225 and TA100) during the period
2007-2012. Our aim was to establish whether technical tools can
consistently achieve returns exceeding those of the B&H strategy across
various financial markets. We found the relative strength index (RSI) to
be the best oscillator, outperforming the DJIA, the FTSE100 and the NK225
for five of the six years examined. The only index that did better than
the RSI was TA100, which outperformed all the examined oscillators. In
second place was the moving average convergence/divergence (MACD)
oscillator, which outperformed the NK225 B&H strategy and came in second
for TA100. The results show that during bear markets the RSI and MACD
generally produce better gains than the indices, while the opposite occurs
during bull markets.
Journal: Applied Economics
Pages: 3189-3197
Issue: 30
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1013609
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013609
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Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3189-3197
Template-Type: ReDIF-Article 1.0
Author-Name: May-Chiun Lo
Author-X-Name-First: May-Chiun
Author-X-Name-Last: Lo
Author-Name: Thurasamy Ramayah
Author-X-Name-First: Thurasamy
Author-X-Name-Last: Ramayah
Author-Name: Yin Chai Wang
Author-X-Name-First: Yin Chai
Author-X-Name-Last: Wang
Title: Sustainable leadership: power of influence in MNCS in Malaysia
Abstract:
Building upon social exchange theory which explains how power is gained
and lost in the process of influence between an agent and the target, this
article hypothesized the impact of supervisors' and subordinates' power
bases on the usage of influence tactics by the supervisors. Bases of power
of supervisors, subordinates and influence tactics were conceptualized as
seven-, seven- and nine-dimensional constructs, respectively. Three
hundred and eighty-five pairs of Malaysian managers and executives working
in large multinational companies participated. Currently, the
manufacturing sector is considered as one of the cornerstone of Malaysia's
economic diversification strategy. The findings suggested that supervisors
apply various influence tactics on their subordinates.
Journal: Applied Economics
Pages: 3198-3215
Issue: 30
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1013610
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013610
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Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3198-3215
Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Moral-Benito
Author-X-Name-First: Enrique
Author-X-Name-Last: Moral-Benito
Author-Name: Luis Serv鮠
Author-X-Name-First: Luis
Author-X-Name-Last: Serv鮠
Title: Testing weak exogeneity in cointegrated panels
Abstract:
For reasons of empirical tractability, analysis of cointegrated economic
time series is often developed in a partial setting, in which a subset of
variables is explicitly modelled conditional on the rest. This approach
yields valid inference only if the conditioning variables are weakly
exogenous for the parameters of interest. This article proposes a new test
of weak exogeneity in panel cointegration models. The test has a limiting
Gumbel distribution that is obtained by first letting and then
letting . We evaluate
the accuracy of the asymptotic approximation in finite samples via
simulation experiments. Finally, as an empirical illustration, we test
weak exogeneity of disposable income and wealth in aggregate consumption.
Journal: Applied Economics
Pages: 3216-3228
Issue: 30
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1013611
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013611
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Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3216-3228
Template-Type: ReDIF-Article 1.0
Author-Name: Marie M. Stack
Author-X-Name-First: Marie M.
Author-X-Name-Last: Stack
Author-Name: Geetha Ravishankar
Author-X-Name-First: Geetha
Author-X-Name-Last: Ravishankar
Author-Name: Eric J. Pentecost
Author-X-Name-First: Eric J.
Author-X-Name-Last: Pentecost
Title: FDI performance: a stochastic frontier analysis of location and variance determinants
Abstract:
The opening up process of the eastern European countries was marked by
greater integration of FDI with their western neighbouring countries.
Using the single-step ML approach to stochastic frontier analysis, the
location and variance determinants of FDI are estimated using the
knowledge capital (KK) model framework. The findings, based on a panel of
bilateral FDI stocks from 10 western to 10 eastern European countries over
the 1996-2007 period, suggest FDI is determined by both horizontal and
vertical motives while the process of liberalization and infrastructural
developments significantly reduces the variance of FDI. In using a
stochastic frontier specification of the KK model, the efficiency of FDI
performance is identified relative to maximum levels. The bilateral
efficiency scores suggest a mixed performance, indicating scope to improve
the efficiency of FDI.
Journal: Applied Economics
Pages: 3229-3242
Issue: 30
Volume: 47
Year: 2015
Month: 6
X-DOI: 10.1080/00036846.2015.1013612
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013612
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Handle: RePEc:taf:applec:v:47:y:2015:i:30:p:3229-3242
Template-Type: ReDIF-Article 1.0
Author-Name: A. Ahrens
Author-X-Name-First: A.
Author-X-Name-Last: Ahrens
Author-Name: T. V. Kovandzic
Author-X-Name-First: T. V.
Author-X-Name-Last: Kovandzic
Author-Name: L. M. Vieraitis
Author-X-Name-First: L. M.
Author-X-Name-Last: Vieraitis
Title: Do execution moratoriums increase homicide? Re-examining evidence from Illinois
Abstract:
This article revisits the event study by Cloninger and Marchesini (2006),
who find that the declaration of the Illinois' death penalty moratorium on
31 January 2000 had a homicide-promoting effect and resulted in 150
additional homicides over the period 2000-2003. We reassess the author's
identification strategy, which they refer to as 'portfolio approach' and
which draws upon event studies in finance research. We argue that their
methodology is not applicable in crime studies. Instead, we apply
univariate time-series methods to test for a structural break at a known
and unknown break date. We allow for unknown break points as the
structural break might have occurred slightly earlier (criminals might
have anticipated the moratorium) or later (due to persistence in criminal
behaviour). In addition, we implement the synthetic control estimator
which approximates the counterfactual homicide series by a weighted
average of homicide outcomes in other US states. Based on various testing
methods and two distinct data sets, we conclude that there is no empirical
evidence to support the hypothesis that the Illinois' execution moratorium
significantly increased homicides.
Journal: Applied Economics
Pages: 3243-3257
Issue: 31
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1013613
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013613
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Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3243-3257
Template-Type: ReDIF-Article 1.0
Author-Name: Wahyu Widodo
Author-X-Name-First: Wahyu
Author-X-Name-Last: Widodo
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia
Abstract:
This article examines the effects of agglomeration economies and
industrial structure upon firm-level technical efficiency in the
Indonesian manufacturing industry over the period 2004-2009. A stochastic
production frontier and three channels of agglomeration economies
consisting of specialization, diversity and competition are used. The
empirical results show that the effects of specialization and diversity
upon firm-level technical efficiency are positive and negative,
respectively, indicating that specialization is more favourable than
diversity for stimulating firms' technical efficiency. Competition has a
positive sign, showing that region with high levels of competition tend to
be more conducive in accelerating firm-level technical efficiency. In
terms of firm location, both dummy for urban region and industrial complex
turn out to be positive, indicating that firms located in both areas are
experienced higher technical efficiency. Both firm size and age also have
positive effect upon technical efficiency.
Journal: Applied Economics
Pages: 3258-3275
Issue: 31
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1013614
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013614
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Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3258-3275
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: Long-run estimates of money demand: new evidence from East Asian countries and the presence of structural breaks
Abstract:
Conventionally, the money demand function is estimated using a linear
regression of the logarithm of money demand on a number of variables. In
this article, we aim to estimate the long-run properties of money demand
specification for a number of East Asian economies and within a panel
framework with the presence of structural breaks. Various country-specific
coefficients are allowed to capture inter-country heterogeneities.
Consistent with theoretical postulates, it is found that (a) the demand
for money in the long-run positively responds to real income and inversely
to the interest rate spread, inflation, the real effective exchange rate
and the US real interest rate; (b) the long-run income elasticity is
greater than unity; and (c) both the currency substitution and capital
mobility hypotheses hold. The empirical findings in this article can
provide useful policy guidelines to the East Asian countries' central
banks in their quest for price stability. If one of the primary objectives
of these countries is to minimize price instability, they should avoid
creating unnecessary disequilibrium in the money market, while the
employment of cointegration with the presence of structural breaks clearly
recommends to central banks to use the supply of money to attain price and
macroeconomic stability.
Journal: Applied Economics
Pages: 3276-3291
Issue: 31
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1013615
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013615
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Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3276-3291
Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Correia de Souza
Author-X-Name-First: Eduardo
Author-X-Name-Last: Correia de Souza
Author-Name: Jorge Chami Batista
Author-X-Name-First: Jorge Chami
Author-X-Name-Last: Batista
Title: Replacement cycles, income distribution and dynamic price discrimination
Abstract:
This article analyses how income distribution, Intellectual Property
Rights and other regulatory policies such as minimum quality standards
determine pricing strategies in a dynamic context where a monopolist
periodically introduces new generations or upgrades of a durable good.
Discrimination through quality and screening in this article takes place
in a context where consumers buy several versions of the durable good
during their lifetime, instead of a single version as in Inderst's (2008)
or Koh's (2006). It also differs from Glass (2001) in that an equilibrium
may emerge in which different consumer types replace their durable
generations with different frequencies. Our modelling is motivated by
stylized facts from the last Brazilian POF (household budget survey).
Journal: Applied Economics
Pages: 3292-3310
Issue: 31
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1013616
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013616
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Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3292-3310
Template-Type: ReDIF-Article 1.0
Author-Name: J. Buckell
Author-X-Name-First: J.
Author-X-Name-Last: Buckell
Author-Name: A. Smith
Author-X-Name-First: A.
Author-X-Name-Last: Smith
Author-Name: R. Longo
Author-X-Name-First: R.
Author-X-Name-Last: Longo
Author-Name: D. Holland
Author-X-Name-First: D.
Author-X-Name-Last: Holland
Title: Efficiency, heterogeneity and cost function analysis: empirical evidence from pathology services in the National Health Service in England
Abstract:
Pathology services are increasingly recognized as key to effective
healthcare delivery - underpinning diagnosis, long-term disease management
and research. To the extent that pathology services affect a patient's
treatment pathway, significant healthcare costs are influenced directly by
the performance of these services. Given pressures on the UK Department of
Health to make efficiency savings and that little is known about the
efficiency of pathology laboratories, this area offers unlocked potential
for efficiency gains. We adopt a time varying inefficiency model, with
laboratory-specific time paths for inefficiency, to identify potential
savings in pathology services based on a panel of 57 English laboratories
over a 5 year period. We apply a range of approaches to account for
observable and unobservable heterogeneity between laboratories. We find
potential efficiency savings of 13% in pathology services in this sample,
which implies the potential for an annual saving of £390m in
pathology across the NHS. Our study also provides valuable insights into
the impact of a range of factors influencing laboratory costs.
Journal: Applied Economics
Pages: 3311-3331
Issue: 31
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1013617
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013617
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Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3311-3331
Template-Type: ReDIF-Article 1.0
Author-Name: Atsushi Sekine
Author-X-Name-First: Atsushi
Author-X-Name-Last: Sekine
Title: Effects of mineral-commodity price shocks on monetary policy in developed countries
Abstract:
This article investigates effects of changes in mineral commodity prices
on monetary policy. Using macroeconomic data from three mineral-producing
countries (Australia, Canada and New Zealand) and two non-mineral-resource
countries (USA and UK), I estimate the impulse response functions of the
policy interest rates and the core consumer price index (CPI) inflation
rates to mineral-commodity price shocks. I find that the central banks in
both groups of the examined countries significantly respond to
mineral-commodity price shocks. In responses to an unexpected 10% increase
in mineral commodity prices, the central banks are estimated to increase
their policy interest rates by approximately 0.8 percentage points.
Moreover, the central banks seem to take anticipatory policy reactions to
control core CPI variations triggered by these shocks. Thus, mineral
commodity prices would act as important determinants of the monetary
policies in both groups of the examined countries. These findings would be
useful for analysing Taylor rules in their countries. However, effects of
the increase in their policy interest rates on core CPI inflation cannot
be identified for the examined countries.
Journal: Applied Economics
Pages: 3332-3346
Issue: 31
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1013618
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013618
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Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3332-3346
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmod Qadan
Author-X-Name-First: Mahmod
Author-X-Name-Last: Qadan
Author-Name: Joseph Yagil
Author-X-Name-First: Joseph
Author-X-Name-Last: Yagil
Title: International co-movements of real and financial economic variables
Abstract:
This study presents a first attempt at investigating whether the
international co-movements of real economic activity conform to the same
international co-movements of financial activity. This study tests the
international co-movements of real economic activity, on the one hand, and
financial variables such as stock returns, interest rates, inflation rates
and risk premiums, on the other hand. We employ a dynamic correlation
model on data from OECD countries for the period 1980-2010. Our findings
demonstrate that international stock markets co-react in accordance with
the underlying international economic forces. We also document three other
results. First, the correlation among countries with respect to real
economic activity is statistically positive, but the level of this
correlation is lower than that of financial variables. Second, there is a
significant increase over time in the international correlation level with
respect to the financial variables. Finally, the creation of the Euro
Monetary Union and the adoption of an inflation targeting policy in many
countries have increased the international correlation of all of the
financial variables tested. The article concludes with two implications
from these findings: (1) predictions in the context of international
portfolio diversification, and (2) policy making at the fiscal and
monetary levels.
Journal: Applied Economics
Pages: 3347-3366
Issue: 31
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1013619
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013619
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Handle: RePEc:taf:applec:v:47:y:2015:i:31:p:3347-3366
Template-Type: ReDIF-Article 1.0
Author-Name: George Mihaylov
Author-X-Name-First: George
Author-X-Name-Last: Mihaylov
Author-Name: Alfred Yawson
Author-X-Name-First: Alfred
Author-X-Name-Last: Yawson
Author-Name: Ralf Zurbruegg
Author-X-Name-First: Ralf
Author-X-Name-Last: Zurbruegg
Title: The decision to seek advice in the self-directed retirement fund industry
Abstract:
This article examines the influence of investor knowledge and the
cognitive bias that arises from overconfidence on the advice-seeking
behaviour of investors managing their own retirement funds. Specifically,
we trace whether overestimating one's own technical and financial
abilities can hinder the willingness to seek advice, particularly when it
would be in the investors' best interest to do so. We identify a subset of
investors who are not knowledgeable and yet do not seek advice. These
investors exhibit overconfidence in their ability to manage a fund,
despite holding under-diversified and less sophisticated portfolios
relative to their peers. Given the global rise in investors choosing to
manage their own retirement funds and the importance of seeking advice in
this context, there are direct policy implications from these results.
They suggest a need to identify and target investors who display
overconfidence since they are most likely to be managing underperforming
retirement investments in the longer term.
Journal: Applied Economics
Pages: 3367-3381
Issue: 32
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1013620
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013620
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Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3367-3381
Template-Type: ReDIF-Article 1.0
Author-Name: Vassilios G. Papavassiliou
Author-X-Name-First: Vassilios G.
Author-X-Name-Last: Papavassiliou
Title: Price discovery and the effects of fragmentation on market quality: evidence from Cypriot cross-listed stocks
Abstract:
Using a novel high-frequency data set, we examine the contribution of
Greek trading to the price discovery process of a pair of Cypriot
blue-chip, cross-listed stocks during overlapping trading hours.
Additionally, we investigate the effects of market fragmentation on the
home market's quality, as measured by microstructure-based liquidity
measures. Contrary to earlier studies from other markets, our findings
show that foreign stock exchanges can act as the leading contributors to
price discovery and can concentrate the majority of trading activity and
produce the lowest transaction costs. Our results also show that market
fragmentation can lead to negative effects on market liquidity.
Journal: Applied Economics
Pages: 3382-3394
Issue: 32
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016205
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016205
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Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3382-3394
Template-Type: ReDIF-Article 1.0
Author-Name: Dooyeon Cho
Author-X-Name-First: Dooyeon
Author-X-Name-Last: Cho
Author-Name: Dong-Eun Rhee
Author-X-Name-First: Dong-Eun
Author-X-Name-Last: Rhee
Title: An assessment of inflation targeting in a quantitative monetary business cycle framework: evidence from four early adopters
Abstract:
This article examines the effectiveness of inflation targeting (IT) to
stabilize the real economy in advanced countries where IT was adopted in
the early 1990s. To quantitatively assess IT, this article employs the
monetary business cycle accounting methodology recently developed by
Šustek (2011), which is an extended version of Chari, Kehoe, and
McGrattan (2007), to monetary models. Our main finding is that the
monetary policy wedge that captures economic fluctuations caused by
monetary policy has significantly declined since the implementation of IT
in the early 1990s. The results suggest that advanced economies, such as
Australia, Canada, Sweden and the United Kingdom, that adopted IT in the
early 1990s have been successful in stabilizing business cycle
fluctuations.
Journal: Applied Economics
Pages: 3395-3413
Issue: 32
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016206
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016206
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Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3395-3413
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Firpo
Author-X-Name-First: Sergio
Author-X-Name-Last: Firpo
Author-Name: Hugo Jales
Author-X-Name-First: Hugo
Author-X-Name-Last: Jales
Author-Name: Cristine Pinto
Author-X-Name-First: Cristine
Author-X-Name-Last: Pinto
Title: Measuring peer effects in the Brazilian school system
Abstract:
Using the identification strategy proposed by Graham and Hahn (2005), we
estimate the magnitude of classmate effects on math scores using Brazilian
data from 2005. In addition, we provide a detailed discussion about the
identification of endogenous peer effects in the linear in means models.
Our results show that both peer characteristics (exogenous peer effects) -
like race, socioeconomic status and gender - and peer actions (endogenous
peer effects) are important determinants of students' outcomes in the
fifth grade of elementary school. Our estimates of endogenous peer effects
are about 0.008 of 1 SD of math test scores, which can be interpreted as
evidence of a so-called 'conformist' individual behaviour, under which
students face large costs to exert effort levels that are distant from
what is believed to be the norm in the classroom. Those estimates of
endogenous peer effects imply a social multiplier of about 1.67.
Journal: Applied Economics
Pages: 3414-3438
Issue: 32
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016207
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016207
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Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3414-3438
Template-Type: ReDIF-Article 1.0
Author-Name: Michiel Bijlsma
Author-X-Name-First: Michiel
Author-X-Name-Last: Bijlsma
Author-Name: Karen Van Der Wiel
Author-X-Name-First: Karen
Author-X-Name-Last: Van Der Wiel
Title: Consumer perception of deposit insurance: little awareness, limited effectiveness?
Abstract:
The empirical findings on bank runs and market discipline are at odds with
the theoretical predictions from the literature, at least in emerging
markets. Using unique survey data from the Netherlands, we explore two
possible explanations: deposit holders may have limited knowledge of
deposit insurance (DI)-schemes or they may not fully trust these schemes
to be executed faithfully. We find that knowledge on the eligibility for
DI is limited, particularly when it concerns minor banks. Nevertheless,
households with more deposits have better knowledge of the DI-scheme and
show higher levels of trust. In addition, deposit holders generally expect
an associated payback time that well exceeds the time it has taken to pay
back depositors in the past. Moreover, consumers believe repayment is more
likely and faster for large, systemic banks. These results confirm that
both households' awareness of the coverage and trust in the operations of
the DI-scheme are suboptimal.
Journal: Applied Economics
Pages: 3439-3461
Issue: 32
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016208
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016208
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Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3439-3461
Template-Type: ReDIF-Article 1.0
Author-Name: Shin-Yi Chou
Author-X-Name-First: Shin-Yi
Author-X-Name-Last: Chou
Author-Name: Echu Liu
Author-X-Name-First: Echu
Author-X-Name-Last: Liu
Author-Name: Min-Jen Lin
Author-X-Name-First: Min-Jen
Author-X-Name-Last: Lin
Author-Name: Jin-Tan Liu
Author-X-Name-First: Jin-Tan
Author-X-Name-Last: Liu
Title: Better peers, better scores? A study of twin junior high school graduates in Taiwan
Abstract:
Using data of twin students graduating from junior high schools between
2002 and 2004 in Taiwan, we estimate the effects of peers on high school
joint entrance examination performance. To alleviate the potential
endogeneity of peer educational achievement, linear models with twin fixed
effect and instrumental variables are estimated. Quantile, quantile with
twin fixed effect and quantile with instrument variables regressions are
also implemented to determine whether estimated peer effects differ at
various locations of the testing scores' conditional distributions.
Positive and statistically significant peer effects are found to exist at
the mean and at different quantile levels.
Journal: Applied Economics
Pages: 3462-3481
Issue: 32
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016209
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016209
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Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3462-3481
Template-Type: ReDIF-Article 1.0
Author-Name: Kunlapath Sukcharoen
Author-X-Name-First: Kunlapath
Author-X-Name-Last: Sukcharoen
Author-Name: Hankyeung Choi
Author-X-Name-First: Hankyeung
Author-X-Name-Last: Choi
Author-Name: David J. Leatham
Author-X-Name-First: David J.
Author-X-Name-Last: Leatham
Title: Optimal gasoline hedging strategies using futures contracts and exchange-traded funds
Abstract:
This article employs a variety of econometric models (including OLS,
VEC/VAR, DCC GARCH and a class of copula-based GARCH models) to estimate
optimal hedge ratios for gasoline spot prices using gasoline
exchange-traded funds (ETFs) and gasoline futures contracts. We then
compare their performance using four different measures from the
perspective of both their hedging objectives and trading position using
four different measures: variance reduction measure, utility-based measure
and two tail-based measures (value at risk and expected shortfall). The
impact of the 2008 financial market crisis on hedging performance is also
investigated. Our findings indicate that, in terms of variance reduction,
the static models (OLS and VEC/VAR) are found to be the best hedging
strategies. However, more sophisticated time-varying hedging strategies
could outperform the static hedging models when the other measures are
used. In addition, ETF hedging is a more effective hedging strategy than
futures hedging during the high-volatility (crisis) period, but this is
not always the case during the normal time (post-crisis) period.
Journal: Applied Economics
Pages: 3482-3498
Issue: 32
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016210
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016210
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Handle: RePEc:taf:applec:v:47:y:2015:i:32:p:3482-3498
Template-Type: ReDIF-Article 1.0
Author-Name: Tristan Kohl
Author-X-Name-First: Tristan
Author-X-Name-Last: Kohl
Author-Name: Sofia Trojanowska
Author-X-Name-First: Sofia
Author-X-Name-Last: Trojanowska
Title: Heterogeneous trade agreements, WTO membership and international trade: an analysis using matching econometrics
Abstract:
This article explores the heterogeneous effects of trade agreements (TAs)
and World Trade Organization (WTO) membership on the volume of
international trade. We extend Baier and Bergstrand's (2009a) application
of matching econometrics by distinguishing between different types of TAs
and WTO participation and account for the endogenous nature of trade
policy. For a panel data set covering 1960-2005 and 187 countries, we find
that the treatment effect on international trade systematically varies
with the type of TA and WTO membership.
Journal: Applied Economics
Pages: 3499-3509
Issue: 33
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016211
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016211
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Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3499-3509
Template-Type: ReDIF-Article 1.0
Author-Name: Takanori Tanaka
Author-X-Name-First: Takanori
Author-X-Name-Last: Tanaka
Title: Foreign investors and corporate social responsibility: evidence from the career advancement of women in Japan
Abstract:
I examine whether foreign investors invest in firms that encourage the
career advancement of women by using data from a sample of Japanese firms
during the period 2008-2011. First, I find that corporate governance
reform and work-life balance practices facilitate the promotion of women
to higher positions in firms. Furthermore, I find that foreign investors
hold more shares of firms that encourage the career advancement of women.
Overall, these results indicate that the career advancement of women, as a
part of corporate social responsible activities, benefits foreign
investors.
Journal: Applied Economics
Pages: 3510-3524
Issue: 33
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016212
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016212
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Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3510-3524
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Title: Asymmetric size-dependent effects of the output gap on inflation: US evidence from the last half a century
Abstract:
This article examines asymmetric size- and sign-dependent effects of the
output gap on the US quarterly inflation rate using data from the last
half a century (1959Q2-2013Q1). Consistent with previous studies, it is
found that the consumer price index is cointegrated with the unit labour
cost and the price of oil. A short-run dynamic model is then estimated in
which variations in the output gap are divided into three groups:
large-positive; large-negative; and small-medium positive/negative. The
results provide convincing evidence that only sufficiently large (positive
or negative) variations of the output gap can significantly influence
inflation. Put otherwise, relatively small to medium changes in the output
gap exert no significant impact on inflation and if not separated, they
can somewhat obscure the significant effects associated with large
variations of the output gap. This study can lead to greater consensus on
the inflation-output gap nexus. The findings remain robust despite the use
of different measures of output gap and they are consistent with the
modern doctrine but with a new caveat: inflation responds to both positive
and negative changes in the output gap as long as such variations are of
sizable magnitudes.
Journal: Applied Economics
Pages: 3525-3539
Issue: 33
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1016213
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1016213
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Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3525-3539
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Hutter
Author-X-Name-First: Christian
Author-X-Name-Last: Hutter
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Constructing a new leading indicator for unemployment from a survey among German employment agencies
Abstract:
The article investigates the predictive power of a new survey implemented
by the Federal Employment Agency (FEA) for forecasting German unemployment
in the short run. Every month, the CEOs of the FEA's regional agencies are
asked about their expectations of future labour market developments. We
generate an aggregate unemployment leading indicator that exploits serial
correlation in response behaviour through identifying and adjusting
temporarily unreliable predictions. We use out-of-sample tests suitable in
nested model environments to compare forecasting performance of models
including the new indicator to that of purely autoregressive benchmarks.
For all investigated forecast horizons (1, 2, 3 and 6 months), test
results show that models enhanced by the new leading indicator
significantly outperform their benchmark counterparts. To compare our
indicator to potential competitors, we employ the model confidence set.
Results reveal that models including the new indicator perform very well
at the 10% level.
Journal: Applied Economics
Pages: 3540-3558
Issue: 33
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1018672
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1018672
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Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3540-3558
Template-Type: ReDIF-Article 1.0
Author-Name: Mu-Sheng Chang
Author-X-Name-First: Mu-Sheng
Author-X-Name-Last: Chang
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Title: Do insurance activities enhance the performance of financial services holding companies?
Abstract:
Stiroh and Rumble (2006) and Yeager et al. (2007) have
argued that extension of banks into nonbanking activities produces no
diversification benefits for financial services holding companies (FSHCs)
eligible to consolidate banking and insurance products. We investigate the
effect of aggregate nonbank activities, as well as two main areas of
insurance business, namely agency and underwriting enterprise, on the
risk-adjusted performance of FSHCs. Our sample includes a quarterly panel
data of FSHCs over the period 2003-2011. We find that the effect of FSHCs'
entry into agency insurance activities on their risk-adjusted returns is
dependent on their size; it is positive for FSHCs in the top quartile of
our sample (assets greater than $4.495 billions), but negative for
smaller and mid-size FSHCs. The effect of underwriting insurance
activities on risk-adjusted returns is generally negative or statistically
insignificant, except for some of the largest-size firms.
Journal: Applied Economics
Pages: 3559-3576
Issue: 33
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1019032
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019032
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Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3559-3576
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitris Balios
Author-X-Name-First: Dimitris
Author-X-Name-Last: Balios
Author-Name: Nikolaos Eriotis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Eriotis
Author-Name: Alexandra Fragoudaki
Author-X-Name-First: Alexandra
Author-X-Name-Last: Fragoudaki
Author-Name: Dimitrios Giokas
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Giokas
Title: Economic efficiency of Greek retail SMEs in a period of high fluctuations in economic activity: a DEA approach
Abstract:
This study aims to analyse the economic efficiency of Greek small and
medium retail enterprises before and after the crisis that started in
2008. Based on the Accounting Equation, we use Data Envelopment Analysis
(DEA) to estimate variable returns of scale efficiency scores and to
conclude on specific characteristics that efficient companies have, for
example, on capital structure. Our results from the DEA application show a
high degree of inefficiency. We found that SMEs on the islands are more
efficient than those on the mainland and that SMEs in the cities are the
least efficient. Size seems to be important, more so on the islands and on
the mainland than in the cities. We conclude that companies should act
more conservatively in terms of operating cost when the first signs of a
recession appear. In addition, during a recession period, companies that
have evidences that their operations will continue positively should
strengthen their operations by raising more own capital. Finally, our
study clarifies four issues: the efficiency of retail companies in a
period of growth and a period of recession, focusing on SMEs that operate
in different regions, connecting Accounting Equation and DEA and adding
acid ratio as an output in our model.
Journal: Applied Economics
Pages: 3577-3593
Issue: 33
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1019033
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019033
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Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3577-3593
Template-Type: ReDIF-Article 1.0
Author-Name: Fergal McCann
Author-X-Name-First: Fergal
Author-X-Name-Last: McCann
Author-Name: Tara McIndoe-Calder
Author-X-Name-First: Tara
Author-X-Name-Last: McIndoe-Calder
Title: Firm size, credit scoring accuracy and banks' production of soft information
Abstract:
Research on SME bank financing generally assumes that smaller firms are
more opaque from a lender's perspective. We propose that the
discriminatory power of credit scoring models can be thought of as a proxy
for firm opaqueness, given that when these models perform poorly, lenders
must invest in the production of 'soft information' to supplement the
financial data used in these models. Measuring the discriminatory power of
probit default models across quintiles of the Irish SME size distribution,
we show that our proxy for firm opaqueness increases monotonically as
firms get smaller. This finding supports an assumption that is the
starting point to a wide strand of literature on SME bank financing. Our
findings can also be interpreted as providing an insight to the literature
on the determinants of banks' choice of lending technology. While smaller
banks may, as found in a substantial previous literature, produce larger
amounts of 'soft information' due to their organizational advantages, they
may also do so out of necessity: hard-information-based
default modelling is less effective among smaller firms, thereby forcing
banks that lend to these borrowers to invest more in relationship banking
technologies to retain competitiveness.
Journal: Applied Economics
Pages: 3594-3611
Issue: 33
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1019034
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019034
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Handle: RePEc:taf:applec:v:47:y:2015:i:33:p:3594-3611
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Title: Recent topics in Applied Financial Economics
Abstract:
This note discusses topics concerning recent evolutions in financial
economics research. It focuses in particular on the progress of
quantitative finance and applied economics in the context of the global
financial crisis. To this end, I examine various important topics in
Economics and Finance and discuss several empirical studies on the
statistical properties of macroeconomic and financial data through the
application of different econometric methodologies. I analyse their
empirical findings and discuss their conclusions.
Journal: Applied Economics
Pages: 3613-3616
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021464
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021464
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Template-Type: ReDIF-Article 1.0
Author-Name: Calebe de Roure
Author-X-Name-First: Calebe
Author-X-Name-Last: de Roure
Author-Name: Steven Furnagiev
Author-X-Name-First: Steven
Author-X-Name-Last: Furnagiev
Author-Name: Stefan Reitz
Author-X-Name-First: Stefan
Author-X-Name-Last: Reitz
Title: The microstructure of exchange rate management: FX intervention and capital controls in Brazil
Abstract:
This article uses a microstructure approach to analyse the effectiveness
of capital controls introduced in Brazil to counter an appreciation of the
Real. Based on a rich data set from the Brazilian foreign exchange market,
we estimate a reduced-form VAR to characterize the interaction of the
central bank, financial and commercial customers in times of regulatory
policy measures. We find that capital controls change market participants'
behaviour, and that central bank interventions elicit a significant
response in financial order flow. Referring to the source of order flow,
we find no direct price impact by financial flows and thus no evidence
that the appreciation of the Real is driven by financial customers'
activity. Instead, commercial customers seem to be a primary driver of the
Real within our model.
Journal: Applied Economics
Pages: 3617-3632
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021455
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021455
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3617-3632
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Waël Louhichi
Author-X-Name-First: Waël
Author-X-Name-Last: Louhichi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim
Author-X-Name-Last: Idi Cheffou
Title: Intraday bidirectional volatility spillover across international stock markets: does the global financial crisis matter?
Abstract:
This article studies volatility spillover between the US and the three
largest European stock markets (Frankfurt, London and Paris) around the
time of the recent Subprime crisis. In order to investigate the impact of
the latter, we break our sample down into two sub-periods: a pre-crisis
period and a post-crisis period, using a structural break test that has
the advantage of endogenously testing for further breaks in the data.
Unlike previous studies that have frequently investigated this issue using
low frequency data, our article makes use of intraday data. Accordingly,
using Threshold generalized autoregressive conditional heteroscedasticity
(GARCH) model estimations, we find weak evidence of volatility
transmission between the two regions before the Subprime crisis. However,
during the post-crisis period, we record returns and volatility spillover
from US to European markets and vice versa at different times of the
trading day, indicating that the two regions became more dependent during
the recent Subprime crisis, a finding that supports the contagion
hypothesis between the US and European stock markets.
Journal: Applied Economics
Pages: 3633-3650
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021459
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021459
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuri Biondi
Author-X-Name-First: Yuri
Author-X-Name-Last: Biondi
Title: Accounting and the formation of share market prices over time: a mathematical institutional economic analysis through simulation and experiment
Abstract:
This article develops a heterogeneous agents-based model to examine the
emergent dynamic properties of share market price formation over time,
with a view on financial market stability under alternative accounting
regimes. In the model, individual heterogeneous investors interact with
each other and with institutional devices which are an accounting system
(related to the business firm) and a price system (related to the Share
Exchange). These interactions provide mechanisms for transmission through
which firm-specific (accounting signal) and market-driven (aggregate
price) factors can act. A baseline simulation analysis assesses the
financial market stability under three alternative accounting designs,
namely two kinds of historical cost accounting regime and one kind of
fair-value (mark-to-market) accounting regime. The former prove to better
stabilize the financial system in terms of market volatility and
exuberance in perfectly balanced conditions between speculative and
fundamentalist beliefs and intentions. An evolutionary analysis is then
developed by varying the relative degree of speculative attitudes between
the two sides of the market. Historical cost accounting regimes further
prove to make the financial system more resilient to speculative waves
occurring at inter-individual level. Baseline findings are further
corroborated through experimental analysis in twelve artificial financial
systems. This mathematical institutional economic analysis has general
implications for both designing accounting systems aimed at enhancing
financial market stability and preventing procyclicality, and the study of
accounting information process in the formation of share market prices
over time.
Journal: Applied Economics
Pages: 3651-3672
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021461
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021461
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3651-3672
Template-Type: ReDIF-Article 1.0
Author-Name: Georges Prat
Author-X-Name-First: Georges
Author-X-Name-Last: Prat
Author-Name: Remzi Uctum
Author-X-Name-First: Remzi
Author-X-Name-Last: Uctum
Title: Expectation formation in the foreign exchange market: a time-varying heterogeneity approach using survey data
Abstract:
Using Consensus Economics survey data on JPY/USD and GBP/USD exchange rate
expectations for the 3- and 12-month horizons over the period November
1989-December 2012, we first show that expectations fail the conventional
tests of unbiasedness and do not exhibit a learning process towards
rationality. Our approach is consistent with the economically rational
expectations theory (Feige and Pearce, 1976), which states that
information costs and agents' aversion to misestimating future exchange
rates determine the optimal amounts of information on which they base
their expectations. The time variability of the cost/aversion ratios
justifies at the aggregate level a representation of expectations as a
linear combination of the traditional extrapolative, adaptive and
regressive processes augmented by a forward market component, whose
parameters are allowed to change over time. This mixed expectation model
with unstable heterogeneity is validated by our Kalman filter estimation
results for the two currencies and the two horizons considered. Although
the relative importance of the 'fundamentalists' ('chartists') is found to
increase (decrease) with the time-horizon, chartist behaviour appears to
dominate fundamentalist behaviour for both horizons. Central bank
intervention is then effective in stabilizing the foreign exchange markets
if it encourages fundamentalist activity.
Journal: Applied Economics
Pages: 3673-3695
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021460
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021460
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3673-3695
Template-Type: ReDIF-Article 1.0
Author-Name: Michał Brzoza-Brzezina
Author-X-Name-First: Michał
Author-X-Name-Last: Brzoza-Brzezina
Author-Name: Jacek Kotłowski
Author-X-Name-First: Jacek
Author-X-Name-Last: Kotłowski
Author-Name: Kamil Wierus
Author-X-Name-First: Kamil
Author-X-Name-Last: Wierus
Title: Can interest rate spreads stabilize the euro area?
Abstract:
Since the onset of the financial crisis significant interest rate spreads
have arisen between euro area countries, both for public and private debt.
We check whether these spreads could be made to work towards the goal of
providing more stability to the euro area. In particular, we focus on
reducing the imbalances that arose between the core and peripheral members
of the euro area in the first decade of its existence. The idea is that
stable positive spreads in peripheral countries could have decreased
domestic demand, preventing the boom-bust cycles that plagued these
economies. They could also prevent such developments in the future. We
construct a panel model for euro area countries and estimate the
relationship between real interest rates and the current account balance.
Next, we use the estimated parameters to perform simulations. We find that
spreads on real interest rates of 0.6-5.5 percentage points would have
been necessary to stabilize external positions of the four peripheral euro
area member countries.
Journal: Applied Economics
Pages: 3696-3709
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021547
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021547
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3696-3709
Template-Type: ReDIF-Article 1.0
Author-Name: Junko Koeda
Author-X-Name-First: Junko
Author-X-Name-Last: Koeda
Author-Name: Ryo Kato
Author-X-Name-First: Ryo
Author-X-Name-Last: Kato
Title: The role of uncertainty in the term structure of interest rates: A GARCH-ATSM approach
Abstract:
This article examines the roles of uncertainties regarding various
macro-variables in determining risk premiums of bond yields. We develop a
multivariate GARCH-VAR to quantify uncertainties regarding inflation, real
activities and monetary policy as time-varying conditional variances. We
jointly estimate the multivariate GARCH and no-arbitrage bond pricing
equations using a maximum likelihood method. The results indicate that the
inflation uncertainty is the largest contributor to the dynamics of
long-term yields since the 1980s, while the monetary policy uncertainty
also plays noticeable roles.
Journal: Applied Economics
Pages: 3710-3722
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021454
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021454
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3710-3722
Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Charemza
Author-X-Name-First: Wojciech
Author-X-Name-Last: Charemza
Author-Name: Svetlana Makarova
Author-X-Name-First: Svetlana
Author-X-Name-Last: Makarova
Author-Name: Imran Shah
Author-X-Name-First: Imran
Author-X-Name-Last: Shah
Title: Making the most of high inflation
Abstract:
This article examines the relationship between the real effects of
inflation and its level in countries with frequent episodes of high
inflation. The real effects are computed as asymmetric impulse responses
of output to inflation separately in the regimes with different signs of
the differences between the expected inflation and the predicted
output-neutral inflation. It is found that, with the increase in
inflation, such effects increase in the regime with the positive sign,
relatively to the effects in the regime with the negative sign. It is also
shown that this finding is valid for most countries with high inflation
episodes, where inflation is greater than 4.8% for at least 25% of
quarterly observations. This leads to a simple policy prescription that,
in economies with frequent high inflation episodes, anti-inflationary
monetary decisions are least damaging for output if undertaken in the
periods when the difference between the expected and output-neutral
inflation is negative.
Journal: Applied Economics
Pages: 3723-3739
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021462
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021462
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3723-3739
Template-Type: ReDIF-Article 1.0
Author-Name: Luca Agnello
Author-X-Name-First: Luca
Author-X-Name-Last: Agnello
Author-Name: Vitor Castro
Author-X-Name-First: Vitor
Author-X-Name-Last: Castro
Author-Name: João Tovar Jalles
Author-X-Name-First: João Tovar
Author-X-Name-Last: Jalles
Author-Name: Ricardo M. Sousa
Author-X-Name-First: Ricardo M.
Author-X-Name-Last: Sousa
Title: Fiscal consolidation and financial reforms
Abstract:
We use a rare events logistic regression model as well as traditional
probit and logit models to investigate the impact of fiscal consolidation
on the likelihood of financial reforms for a panel of 17 countries over
the period 1980-2005. We show that large austerity plans, mainly
implemented through spending cuts rather than tax hikes, promote financial
reforms. By considering reforms affecting specific areas of the financial
sector, we find that the banking sector reforms and domestic finance
reforms are more likely to occur when fiscal adjustments are put in place.
Interestingly, while banking sector reforms are mainly prompted during
periods of tax-driven consolidations, spending cuts driven consolidation
packages seem to propel the implementation of domestic finance reforms.
Finally, we show that higher inflation, lower degree of trade openness, a
deterioration of financial conditions and, to some extent, a fall in the
degree of competitiveness enhance the probability of financial reforms.
Journal: Applied Economics
Pages: 3740-3755
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021457
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021457
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3740-3755
Template-Type: ReDIF-Article 1.0
Author-Name: Balẳ Égert
Author-X-Name-First: Balẳ
Author-X-Name-Last: Égert
Title: The 90% public debt threshold: the rise and fall of a stylized fact
Abstract:
We put the original Reinhart-Rogoff data-set, made public by Herndon
et al. (2013), to a formal econometric test to identify
public debt thresholds endogenously. We show that the nonlinear relation
between debt and growth is not robust. Taken with a pinch of salt, our
results suggest, however, that a negative association between central
government debt and growth may set in at debt levels as low as 20% of GDP.
Further (and greater) thresholds may exist, but their magnitude is
uncertain. For general government debt, the threshold is considerably
higher at about 50%. Country-specific estimates reveal a large amount of
cross-country heterogeneity. For some countries including the United
States, a nonlinear negative link can be detected at about 30% of GDP. For
others, no nonlinearities can be established. Our results are a formal
econometric confirmation that the 90% public debt threshold is not in the
Reinhart-Rogoff data. But our results also seem to suggest that public
debt be associated with poor economic performance at fairly moderate
public debt levels. The absence of threshold effects or low estimated
thresholds may not preclude the emergence of further threshold effects,
especially as public debt levels are rising to unprecedentedly high
levels.
Journal: Applied Economics
Pages: 3756-3770
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021463
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021463
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3756-3770
Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Seppecher
Author-X-Name-First: Pascal
Author-X-Name-Last: Seppecher
Author-Name: Isabelle Salle
Author-X-Name-First: Isabelle
Author-X-Name-Last: Salle
Title: Deleveraging crises and deep recessions: a behavioural approach
Abstract:
Macroeconomic dynamics are characterized by alternating patterns of
periods of relative stability and large swings. Standard microfounded
macroeconomic models account for these patterns through exogenous and
persistent shocks. In this article, we develop a fully decentralized and
microfounded macroeconomic agent-based model, augmented with an opinion
model, which produces endogenous waves of pessimism and optimism that feed
back into firms' leverage and households' precautionary saving behaviour.
A major emergent property of our model is precisely the complex
successions of stable and unstable macroeconomic regimes. The model is
further able to account for a wide spectrum of macro and micro empirical
regularities. Within this framework, we analyse a series of macroeconomic
phenomena of key relevance in the current macroeconomic debate, especially
the occurrence of deleveraging crises and Fisherian debt-deflation
recessions. Our analysis suggests that the relative dynamics of prices and
wages and the resulting income distribution along a deflationary path are
critical determinants of the severity of the recession and the chances of
recovery.
Journal: Applied Economics
Pages: 3771-3790
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021456
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021456
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3771-3790
Template-Type: ReDIF-Article 1.0
Author-Name: Filippo Ferroni
Author-X-Name-First: Filippo
Author-X-Name-Last: Ferroni
Author-Name: Benjamin Klaus
Author-X-Name-First: Benjamin
Author-X-Name-Last: Klaus
Title: Euro Area business cycles in turbulent times: convergence or decoupling?
Abstract:
We study the business cycle properties of the four largest European
economies in the wake of the recent recession episodes. The analysis is
based on the factors estimated from a multi-country and multi-sector
data-rich environment. We measure alikeness of business cycles by studying
the synchronization of up and down phases, the convergence properties of
country fluctuations towards the Euro Area (EA) cycles and the
contribution of the EA factor to national GDP volatilities. While the
economic fluctuations of the four EA member states were similar before the
global financial turmoil, we gather compelling evidence of an asymmetric
behaviour of Spanish fluctuations relative to the EA one.
Journal: Applied Economics
Pages: 3791-3815
Issue: 34-35
Volume: 47
Year: 2015
Month: 7
X-DOI: 10.1080/00036846.2015.1021458
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1021458
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Handle: RePEc:taf:applec:v:47:y:2015:i:34-35:p:3791-3815
Template-Type: ReDIF-Article 1.0
Author-Name: Shu Chun Chang
Author-X-Name-First: Shu Chun
Author-X-Name-Last: Chang
Author-Name: Ching-Horng Tsai
Author-X-Name-First: Ching-Horng
Author-X-Name-Last: Tsai
Title: The adoption of new technology by the farmers in Taiwan
Abstract:
This study addresses the technologies the farmers adopted, their reasons
for adopting these technologies and the result of adopting these
technologies. The design and strategy used to collect the data needed are
both qualitative and quantitative. Farmers who practised traditional
farming methods and those who adopted the new technologies were both given
survey questionnaires and were interviewed.The result of the study shows
that the technologies applied by the farmers are the use of tractors in
tilling the ground, the use of machinery in planting, the practice of
irrigation and the use of a combination of organic and commercial
fertilizers. The reasons for the adoption of the latter are the
availability of chemicals and the convenience of their use, and this is
used to enhance the growth of plants. The results of the new technology
adoption are high yields of produce, production of hybrid crops, and the
saving of labour, thus increasing the income of the farmers.
Journal: Applied Economics
Pages: 3817-3824
Issue: 36
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1019035
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019035
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Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3817-3824
Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Dittrich
Author-X-Name-First: Marcus
Author-X-Name-Last: Dittrich
Title: Gender differences in trust and reciprocity: evidence from a large-scale experiment with heterogeneous subjects
Abstract:
This article examines gender differences in an experimental trust game.
Recent studies have shown that men trust more and that women are more
reciprocal in laboratory experiments. Participants in these studies,
however, are typically university students who may not be representative
of the entire population. In this study, we use data from a large-scale
experiment with heterogeneous subjects who are representative of the
German population. We find that men exhibit not only more trusting
behaviour, but also more reciprocating behaviour than women. Moreover, our
results are indicative of age-dependent gender differences. For men, we
find an inverse U-shaped relationship between age, on the one hand, and
both trust and reciprocity, on the other; however, we do not find age
effects for women.
Journal: Applied Economics
Pages: 3825-3838
Issue: 36
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1019036
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019036
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Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3825-3838
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Muller
Author-X-Name-First: Daniel
Author-X-Name-Last: Muller
Author-Name: Lionel Page
Author-X-Name-First: Lionel
Author-X-Name-Last: Page
Title: A new approach to measure tactical voting: evidence from the British elections
Abstract:
Although tactical voting attracts a great deal of attention, it is very
hard to measure as it requires knowledge of both individuals' voting
choices as well as their unobserved preferences. In this article, we
present a simple empirical strategy to nonparametrically identify tactical
voting patterns directly from balloting results. This approach allows us
to study the magnitude and direction of strategic voting as well as to
verify which information voters and parties take into account to determine
marginal constituencies. We show that tactical voting played a significant
role in the 2010 election, mainly for Liberal-Democratic voters supporting
Labour. Moreover, our results suggest that voters seem to form their
expectations based on a national swing in vote shares rather than
newspaper guides published in the main media outlets or previous election
outcomes. We also present some evidence that suggests that campaign
spending is not driving tactical voting.
Journal: Applied Economics
Pages: 3839-3858
Issue: 36
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1019037
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019037
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Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3839-3858
Template-Type: ReDIF-Article 1.0
Author-Name: Lijuan Huo
Author-X-Name-First: Lijuan
Author-X-Name-Last: Huo
Author-Name: Tae-Hwan Kim
Author-X-Name-First: Tae-Hwan
Author-X-Name-Last: Kim
Author-Name: Yunmi Kim
Author-X-Name-First: Yunmi
Author-X-Name-Last: Kim
Title: Revisiting growth empirics based on IV panel quantile regression
Abstract:
We analyse the well-known issue of economic growth convergence using
quantile regression. Most previous studies have used a least squares (LS)
method or variation, which focuses on the issue only at the mean of the
growth rate. Therefore, such results cannot provide a satisfactory answer
to what can happen if the growth rate is far from the conditional mean
level. For example, we consider the following question: do we still have
economic growth convergence or is the convergence speed changed in a low
growth period such as the 'Great Recession,' that started in 2008? We
propose using instrumental variable panel quantile regression to answer
this question. Our empirical findings demonstrate that economic growth
convergence occurs at all quantiles over the entire conditional
distribution, but that the convergence speed does depend on quantiles; the
convergence speed is much higher when the GDP growth rate is at either
high or low quantiles.
Journal: Applied Economics
Pages: 3859-3873
Issue: 36
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1019038
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019038
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Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3859-3873
Template-Type: ReDIF-Article 1.0
Author-Name: Vasilios Plakandaras
Author-X-Name-First: Vasilios
Author-X-Name-Last: Plakandaras
Author-Name: Periklis Gogas
Author-X-Name-First: Periklis
Author-X-Name-Last: Gogas
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Theophilos Papadimitriou
Author-X-Name-First: Theophilos
Author-X-Name-Last: Papadimitriou
Title: US inflation dynamics on long-range data
Abstract:
In this article, we evaluate inflation persistence in the United States
using long-range monthly and annual data. The importance of inflation
persistence is crucial to policy authorities and market participants,
since the level of inflation persistence provides an indication on the
susceptibility of the economy to exogenous shocks. Departing from classic
econometric approaches found in the relevant literature, we evaluate
inflation persistence through the nonparametric Hurst exponent within both
a global and a rolling window framework. Moreover, we expand our analysis
to detect the potential existence of chaos in the data generating process,
in order to enhance the robustness of our conclusions. Overall, we find
that inflation persistence is high from 1775 to 2013 for the annual
data-set and from February 1876 to May 2014 in monthly frequency,
respectively. Especially from the monthly data-set, the rolling window
approach allows us to derive that inflation persistence has reached to
historically high levels in the post-Bretton Woods period and remained
there ever since.
Journal: Applied Economics
Pages: 3874-3890
Issue: 36
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1019039
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019039
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Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3874-3890
Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Alexander Ong
Author-X-Name-First: Marcus Alexander
Author-X-Name-Last: Ong
Title: An information theoretic analysis of stock returns, volatility and trading volumes
Abstract:
Information theory is used to examine the dynamic relationships between
stock returns, volatility and trading volumes for S&P500 stocks. This
provides an alternative approach to traditional Granger causality tests
when dealing with nonlinear relationships. The article highlights the
dominant role played by trading volumes in all of these relationships -
even in the return-volatility relation - and finds evidence of a market
level feedback effect from index returns to the return-volatility relation
at the stock level. The article also produces a number of stylized facts
from an information theoretic perspective.
Journal: Applied Economics
Pages: 3891-3906
Issue: 36
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1019040
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019040
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Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3891-3906
Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova
Author-X-Name-First: Petra
Author-X-Name-Last: Maresova
Author-Name: Blanka Klimova
Author-X-Name-First: Blanka
Author-X-Name-Last: Klimova
Title: Investment evaluation of cloud computing in the European business sector
Abstract:
The importance of cloud computing is acknowledged both at national and
entrepreneurial level. Its potential in business has been already
described in many studies (Dillon et al., 2010; Bayrak
et al., 2011; Nuseibeh, 2011; Repschlaeger et
al., 2013). However, many European countries do not exploit it
much in spite of many positive responses made by respected consulting
companies. The reasons for this are a very low level of changes in
companies, ignorance of opportunities of the given technology and,
consequently, an inability to count the return of investment. Therefore,
the aim of this article is to introduce a tool for the investment
evaluation of cloud computing, which corresponds to the needs of the
European business environment and to the properties of this technology.
Furthermore, the cost Benefit Analysis (CBA) method is explored. This
method is adjusted for cloud computing on the basis of companies'
requirements, which were collected from quantitative and qualitative
surveys and from the interviews with experts in cloud computing from
academic and business environments. In addition, individual stages of the
CBA method used in cloud computing are described.
Journal: Applied Economics
Pages: 3907-3920
Issue: 36
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1019041
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1019041
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Handle: RePEc:taf:applec:v:47:y:2015:i:36:p:3907-3920
Template-Type: ReDIF-Article 1.0
Author-Name: Vera Ogeh Fiador
Author-X-Name-First: Vera Ogeh
Author-X-Name-Last: Fiador
Author-Name: Nicholas Biekpe
Author-X-Name-First: Nicholas
Author-X-Name-Last: Biekpe
Title: Monetary policy and exchange market pressure-evidence from sub-Saharan Africa
Abstract:
The purpose of this study was to assess the impact of monetary policy on
foreign exchange market pressure (EMP) in developing country contexts for
some selected countries in sub-Saharan Africa (SSA) and to measure the
ability of monetary policy to significantly address currency pressures
that arise from trading on the global market. This study was motivated by
the fact that most of the SSA countries are developing economies that have
negative net export positions and stand to lose significantly from
consistently deteriorating foreign exchange position. The study,
therefore, employs a dynamic panel model to test the hypothesis that a
tighter monetary policy stance lends strength to a currency and vice
versa, using 20 SSA economies for the period from 1991 to 2010. This study
finds a negative and significant relationship between monetary policy and
EMP, implying an easing of EMP in the face of contractionary monetary
policy. The findings also point to significant relations between aggregate
output, levels of public debt, the current account balance, terms of trade
and EMP. Findings of this study have important implications as regards the
policy direction on exchange rate and currency management.
Journal: Applied Economics
Pages: 3921-3937
Issue: 37
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023937
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023937
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Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3921-3937
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Marcelo Florensa
Author-X-Name-First: Luis Marcelo
Author-X-Name-Last: Florensa
Author-Name: Laura MᲱuez-Ramos
Author-X-Name-First: Laura
Author-X-Name-Last: MᲱuez-Ramos
Author-Name: Inmaculada Mart-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Mart-Zarzoso
Author-Name: Mar𨁌uisa Recalde
Author-X-Name-First: Mar𨁌uisa
Author-X-Name-Last: Recalde
Title: Regional versus global production networks: where does Latin America stand?
Abstract:
This article quantifies the effects of the Latin American Integration
Association (LAIA) and the Southern Common Market (Mercosur) on the trade
of intermediate goods and also on the trade of final goods. It is the
first article to investigate whether increasing imports of intermediate
goods from different regions to Latin America have led to higher exports
of final and intermediate goods. The article uses sectoral data for trade
in goods between 11 LAIA members over the period 1991-2008. The main
results indicate evidence of increasing regional production networks,
which have strengthened in the 2000s. Moreover, the findings show evidence
of the emergence of global production networks, especially with respect to
intermediate imports from China.
Journal: Applied Economics
Pages: 3938-3956
Issue: 37
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023938
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023938
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Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3938-3956
Template-Type: ReDIF-Article 1.0
Author-Name: Yuko Mori
Author-X-Name-First: Yuko
Author-X-Name-Last: Mori
Title: Voter turnout and the principle of 'one person, one vote': empirical evidence from the constituency freeze in India
Abstract:
This article uses panel data from national and state elections in India
during the period 1977-2007 to examine the effect of inequality in
constituency population size on voter turnout. During this period,
constituency boundaries in India remained fixed. As a result, differences
in population size between constituencies increased, thus changing the
value of a single vote. Using this large variation in population size and
informative data, this article carefully distinguishes the effect of
population size from other factors. We find that an increase of one
million electorates decreases voter turnout by 12-27%. In addition, we
find that the share of votes gained by national political parties is
greater in small-population constituencies. This suggests that political
parties direct their efforts in electoral campaigns preferentially to less
populous constituencies; as a result, voters in small constituencies are
more likely to participate in elections.
Journal: Applied Economics
Pages: 3957-3970
Issue: 37
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023939
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023939
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Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3957-3970
Template-Type: ReDIF-Article 1.0
Author-Name: Ant Afonso
Author-X-Name-First: Ant
Author-X-Name-Last: Afonso
Author-Name: Christophe Rault
Author-X-Name-First: Christophe
Author-X-Name-Last: Rault
Title: Short- and long-run behaviour of long-term sovereign bond yields
Abstract:
We assess the short- and long-run behaviour of long-term sovereign bond
yields in OECD countries using a dynamic panel approach to reflect
financial and economic integration. Given the existence of cross-country
dependence regarding sovereign yields and its determinants, we resort to
simulation and bootstrap methods. Results based on the Common Correlated
Effect estimator of Pesaran and on Panel Error Correction Models to sort
out short- and long-run fiscal developments show that in addition to
common movements in sovereign yields, investors also consider country
differences arising from specific factors (inflation, budgetary and
current account imbalances, real effective exchange rates, and liquidity).
Journal: Applied Economics
Pages: 3971-3993
Issue: 37
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023940
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023940
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Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3971-3993
Template-Type: ReDIF-Article 1.0
Author-Name: Mª Jesús Alonso-Nuez
Author-X-Name-First: Mª Jesús
Author-X-Name-Last: Alonso-Nuez
Author-Name: Ma Flores-Garc𨀍
Author-X-Name-First: Ma
Author-X-Name-Last: Flores-Garc𨀍
Author-Name: Antonio MuPorcar
Author-X-Name-First: Antonio
Author-X-Name-Last: MuPorcar
Title: Construction industry in Spain, is it guilty of the current crisis?
Abstract:
This article presents an analysis of the construction sector in Spain over
the last decade. Several indicators are constructed based on Input-Output
tables that demonstrate that the importance attributed to this sector does
not correspond to its true role in the overall Spanish economy. Although
it is true that the construction industry is important for other sectors
of the economy, it is also true that the sector shows indicators that are
average for the Spanish economy and lower than those of the industrial
sector.
Journal: Applied Economics
Pages: 3994-4006
Issue: 37
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023941
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023941
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Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:3994-4006
Template-Type: ReDIF-Article 1.0
Author-Name: Zuzana Janko
Author-X-Name-First: Zuzana
Author-X-Name-Last: Janko
Author-Name: Gurleen Popli
Author-X-Name-First: Gurleen
Author-X-Name-Last: Popli
Title: Examining the link between crime and unemployment: a time-series analysis for Canada
Abstract:
We use national and regional Canadian data to analyse the relationship
between economic activity (as reflected by the unemployment rate) and
crime rates. Given potential aggregation bias, we disaggregate the crime
data and look at the relationship between six different types of crimes
rates and unemployment rate; we also disaggregate the data by region. We
employ an error correction model in our analysis to test for short-run and
long-run dynamics. We find no evidence of long-run relationship between
crime and unemployment, when we look at both disaggregation by type of
crime and disaggregation by region. Lack of evidence of a long-run
relationship indicates we have no evidence of the motivation hypothesis.
For selected types of property crimes, we find some evidence of a
significant negative short-run relationship between crime and
unemployment, lending support to the opportunity hypothesis. Inclusion of
control variables in the panel analysis does not alter the findings,
qualitatively or quantitatively.
Journal: Applied Economics
Pages: 4007-4019
Issue: 37
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023942
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023942
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Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:4007-4019
Template-Type: ReDIF-Article 1.0
Author-Name: Xian Zheng
Author-X-Name-First: Xian
Author-X-Name-Last: Zheng
Title: Expectation, volatility and liquidity in the housing market
Abstract:
Measuring housing price volatility is fundamental to understanding the
dynamics of housing price risk. This article aims to explore whether a
liquidity factor plays a role in explaining the second moment (i.e. the
volatility) of housing prices. Housing price volatility is measured as the
conditional variance of a Generalized Auto Regressive Conditional
Heteroscedasticity (GARCH) model under the Adaptive Expectations
framework. The empirical evidence reveals that volatility transmits from
smaller housing units to larger housing units, which indirectly supports
the trade-up effect discussed in the literature. In addition, less liquid
housing classes are more sensitive to unexpected liquidity shocks, and the
starter housing class is extraordinarily sensitive to negative liquidity
shocks. Consistent with friction search theory, pricing errors are
alleviated as the trading volume increases, because the valuation price
tends to be more accurate as more information is available.
Journal: Applied Economics
Pages: 4020-4035
Issue: 37
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023943
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023943
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Handle: RePEc:taf:applec:v:47:y:2015:i:37:p:4020-4035
Template-Type: ReDIF-Article 1.0
Author-Name: Joscha Beckmann
Author-X-Name-First: Joscha
Author-X-Name-Last: Beckmann
Author-Name: Ansgar Belke
Author-X-Name-First: Ansgar
Author-X-Name-Last: Belke
Author-Name: Michael Kühl
Author-X-Name-First: Michael
Author-X-Name-Last: Kühl
Title: Foreign exchange market interventions and the $-¥ exchange rate in the long run
Abstract:
This article examines whether foreign exchange market interventions
conducted by the Bank of Japan are important for the dollar-yen exchange
rate in the long run. We rely on a re-examination of the empirical
performance of a monetary exchange rate model. This is basically not a new
topic; however, we focus on two new questions. First, does the
consideration of periods of massive interventions in the foreign exchange
market uncover a potential long-run relationship between the exchange rate
and its fundamentals? Second, do Forex interventions support the
adjustment towards a long-run equilibrium value? Our results suggest that
taking periods of interventions into account within a monetary model does
improve the goodness of fit of an identified long-run relationship to a
significant degree. Furthermore, Forex interventions increase the speed of
adjustment towards long-run equilibrium in some periods, particularly in
periods of coordinated forex interventions. Our results indicate that only
coordinated interventions seem to stabilize the dollar-yen exchange rate
in a long-run perspective.
Journal: Applied Economics
Pages: 4037-4055
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1013621
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1013621
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Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4037-4055
Template-Type: ReDIF-Article 1.0
Author-Name: Gregory A. Gilpin
Author-X-Name-First: Gregory A.
Author-X-Name-Last: Gilpin
Author-Name: Luke A. Pennig
Author-X-Name-First: Luke A.
Author-X-Name-Last: Pennig
Title: Compulsory schooling laws and school crime
Abstract:
Extensive literature demonstrates that compulsory schooling laws improve
educational attainment, well-being, civic involvement, and labour market
outcomes. However, at-risk youth incapacitated to schools may impact the
learning environment and school safety. The purpose of this article is to
study whether raising the minimum dropout age (MDA) requirement above 16
increases crime committed within US public high schools. A
difference-in-difference estimation exploits changes in state-level MDA
laws over time and indicates that schools in states that raise their MDA
requirement to 18 incur more overall crime relative to schools in states
that do not, while no effect on overall crime is identified when the MDA
requirement is raised to 17. Furthermore, these effects persist for
4 years after passage and more intensely in metropolitan areas.
Coupling this research with existing literature suggests that when the MDA
requirement is raised to 18, only a small portion of the observed
reduction in juvenile crime is displaced to schools. Analysis by category
of crime reveals schools incur more physical attacks, no change in illegal
drug and property crimes, and fewer violent crimes in states that raise
their MDA requirement to 18, while illegal drug crimes increase in states
that raise their MDA requirement to 17.
Journal: Applied Economics
Pages: 4056-4073
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023944
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023944
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Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4056-4073
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Louis Combes
Author-X-Name-First: Jean Louis
Author-X-Name-Last: Combes
Author-Name: Christian Ebeke
Author-X-Name-First: Christian
Author-X-Name-Last: Ebeke
Author-Name: Mathilde Maurel
Author-X-Name-First: Mathilde
Author-X-Name-Last: Maurel
Title: The effect of remittances prior to an election
Abstract:
The objective of the article is to assess whether remittances have an
influence on political manipulation, which may occur prior to an election,
through an increase in the government consumption-to-GDP ratio. We combine
data from the National Elections across Democracy and Autocracy data set
compiled and discussed in Hyde and Marinov (2012) and the World
Development Indicators data set. We focus on 70 developing countries over
the period 1990-2010. It appears that the political budget cycle is
reduced up to the point where it is fully cancelled out at a remittance
threshold of 10.7% of GDP. Those findings are robust to different
robustness checks.
Journal: Applied Economics
Pages: 4074-4089
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023945
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023945
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Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4074-4089
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Gius
Author-X-Name-First: Mark
Author-X-Name-Last: Gius
Title: The effects of state and federal background checks on state-level gun-related murder rates
Abstract:
The purpose of the present study was to determine whether firearm
background checks are significantly related to gun-related murder rates.
The present study differs from prior research in several ways. First, a
large longitudinal data-set is used; data for 50 states for the period
1980-2011 are examined. Second, the effects of both federal and state
background checks, including state-mandated private sales background
checks, are estimated. Finally, a fixed effects model that controls for
both state-level and year-specific effects is used. Results suggest that
states that require dealer background checks have lower gun-related murder
rates than other states. In addition, after implementation of the Brady
Act, gun-related murder rates fell. However, the results also suggest
that, for the entire period in question, states with private sales
background checks had higher gun-related murder rates than states with no
such background checks. If one only looks the Brady Act period, however,
then the private sales background check variable is insignificant. These
results for private sales background checks are novel and contrary to the
results of much prior research in this area.
Journal: Applied Economics
Pages: 4090-4101
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023946
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023946
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Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4090-4101
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Karoubi
Author-X-Name-First: Bruno
Author-X-Name-Last: Karoubi
Author-Name: R駩s Chenavaz
Author-X-Name-First: R駩s
Author-X-Name-Last: Chenavaz
Title: Prices for cash and cash for prices? Theory and evidence on convenient pricing
Abstract:
A transaction between a seller and a buyer incurs a payment cost. The
payment cost is borne by the seller, depending on the payment instrument
the buyer chooses, cash or card. Card payment is more costly than cash
payment, so the seller prefers that the buyer pays cash. In this article,
we study the strategy of the seller setting a convenient
price, which simplifies transactions and pushes the buyer to pay cash. The
theoretical analysis, which models both the seller and the buyer in a game
setting, derives two propositions: (1) the seller is more likely to set a
more convenient price and (2) the buyer is more likely to pay cash a more
convenient price. The empirical analysis supports both propositions. Thus,
sellers adopt a convenience pricing strategy - prices for cash - and this
strategy pushes buyers to pay cash - cash for prices.
Journal: Applied Economics
Pages: 4102-4115
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023947
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023947
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Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4102-4115
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Boussemart
Author-X-Name-First: Jean-Philippe
Author-X-Name-Last: Boussemart
Author-Name: Herv頌eleu
Author-X-Name-First: Herv頍
Author-X-Name-Last: Leleu
Author-Name: Vivian Valdmanis
Author-X-Name-First: Vivian
Author-X-Name-Last: Valdmanis
Title: A two-stage translog marginal cost pricing approach for Floridian hospital outputs
Abstract:
Since the passage of the Affordable Care Act (ACA) of 2010, issues still
remain regarding the mandated purchase of insurance to ensure more
universal coverage. One such issue is the pricing of these insurance
packages and whether or not the reimbursements will cover necessary
services. Therefore, policy concerns exist that increasing the number of
insured individuals may not curtail costs. Conversely, providers may not
wish to treat patients covered by excessively frugal plans such as
Medicaid; hence the trade-offs between access and cost control. In this
article, we present findings from a cost function and a productivity
approach to determine the marginal cost of providing inpatient hospital
care for hospitals operating in Florida during 2005. Using these
methodological approaches, we are able to use the marginal rate of
transformation to determine the relative marginal costs while controlling
for hospital technical and allocative inefficiency. Our work differs from
earlier articles as we avoid the Greene problem for cross-sectional models
through a two-step approach. By including both reimbursement rates under
conditions of hospital efficiency, we can ascertain payment schemes that
should, at least in theory, cover necessary costs for patient care without
leading to excessive input usage.
Journal: Applied Economics
Pages: 4116-4127
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023948
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023948
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Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4116-4127
Template-Type: ReDIF-Article 1.0
Author-Name: Tim Pawlowski
Author-X-Name-First: Tim
Author-X-Name-Last: Pawlowski
Author-Name: Georgios Nalbantis
Author-X-Name-First: Georgios
Author-X-Name-Last: Nalbantis
Title: Competition format, championship uncertainty and stadium attendance in European football - a small league perspective
Abstract:
To increase the number of regular season games, small football leagues are
often organized as quadruple round robin tournaments with teams playing
each other four times. Theoretically, however, the more
games played, the less uncertain is the championship race, reducing fan
interest in the league. This article uses data from Austria and
Switzerland to study the relationship between competition format,
championship uncertainty and attendance demand
empirically. Results suggest that a team still in
contention to win the championship positively affects attendance, while it
is not the specificity of the competition format that per
se contributes to less championship uncertainty.
Journal: Applied Economics
Pages: 4128-4139
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1023949
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1023949
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Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:4128-4139
Template-Type: ReDIF-Article 1.0
Author-Name: Hossein Hassani
Author-X-Name-First: Hossein
Author-X-Name-Last: Hassani
Author-Name: Emmanuel Sirimal Silva
Author-X-Name-First: Emmanuel Sirimal
Author-X-Name-Last: Silva
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mawuli K. Segnon
Author-X-Name-First: Mawuli K.
Author-X-Name-Last: Segnon
Title: Forecasting the price of gold
Abstract:
This article seeks to evaluate the appropriateness of a variety of
existing forecasting techniques (17 methods) at providing accurate and
statistically significant forecasts for gold price. We report the results
from the nine most competitive techniques. Special consideration is given
to the ability of these techniques to provide forecasts which outperforms
the random walk (RW) as we noticed that certain multivariate models (which
included prices of silver, platinum, palladium and rhodium, besides gold)
were also unable to outperform the RW in this case. Interestingly, the
results show that none of the forecasting techniques are able to
outperform the RW at horizons of 1 and 9 steps ahead, and on average, the
exponential smoothing model is seen providing the best forecasts in terms
of the lowest root mean squared error over the 24-month forecasting
horizons. Moreover, we find that the univariate models used in this
article are able to outperform the Bayesian autoregression and Bayesian
vector autoregressive models, with exponential smoothing reporting
statistically significant results in comparison with the former models,
and classical autoregressive and the vector autoregressive models in most
cases.
Journal: Applied Economics
Pages: 4141-4152
Issue: 39
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026580
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026580
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Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4141-4152
Template-Type: ReDIF-Article 1.0
Author-Name: Ju-Chin Huang
Author-X-Name-First: Ju-Chin
Author-X-Name-Last: Huang
Author-Name: Min Qiang Zhao
Author-X-Name-First: Min Qiang
Author-X-Name-Last: Zhao
Title: Model selection and misspecification in discrete choice welfare analysis
Abstract:
This study extends the work by Herriges and Kling (1997) to further
evaluate the impact of discrete choice modelling techniques on welfare
measures. Particularly, we evaluate the performance of the increasingly
popular mixed logit model and the computational strategy for deriving
discrete choice welfare measures. Our simulation results show that model
misspecification can have profound effects on welfare measures. In
general, the flexible mixed logit model performs relatively well in the
presence of misspecification. However, when the nesting structure can be
appropriately identified (via statistical tests and a priori
knowledge/experience), the nested logit model provides more reliable
welfare measures than the mixed logit model.
Journal: Applied Economics
Pages: 4153-4167
Issue: 39
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026581
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026581
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Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4153-4167
Template-Type: ReDIF-Article 1.0
Author-Name: Jesús A. MuSepúlveda
Author-X-Name-First: Jesús A.
Author-X-Name-Last: MuSepúlveda
Author-Name: Diego Rodrz
Author-X-Name-First: Diego
Author-X-Name-Last: Rodrz
Title: Geographical and industrial spillovers in entry decisions across export markets
Abstract:
This article addresses sequential entry decisions in export markets. It
focuses on externalities derived from previous export activity in
countries close to those for which a potential entry decision is made
(geographical spillovers) and externalities derived from
previous presence of other firms in the same industry (industrial
spillovers). The empirical analysis uses Spanish microdata for
the period 2000-2010 in a firm decision model that also integrates country
and industry characteristics. The results suggest that these two types of
spillovers have a positive effect in explaining entry decisions in new
export markets, though both are smaller in magnitude than the effects
coming from previous presence in the same specific destination.
Journal: Applied Economics
Pages: 4168-4183
Issue: 39
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026582
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026582
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Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4168-4183
Template-Type: ReDIF-Article 1.0
Author-Name: Hala El-Said
Author-X-Name-First: Hala
Author-X-Name-Last: El-Said
Author-Name: Mahmoud Al-Said
Author-X-Name-First: Mahmoud
Author-X-Name-Last: Al-Said
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: Trade and access to finance of SMEs: is there a nexus?
Abstract:
Limited resources and barriers to entry are critically higher for small
and medium enterprises (SMEs) than for large companies. One of the reasons
explaining why the resources of SMEs are scarce is their limited access to
financial services. This in turn reduces the likelihood of exporting. For
this reason, using the census of SMEs done by the Central Bank of Egypt
and the Egyptian Banking Institute, we try to examine the impact of access
to finance on their export performance. We measure the latter by the
extensive margin that means the probability of becoming an exporter and
the probability of serving several markets. We found a significant and
positive impact of dealing with banks and having banking facilities on the
probability of exporting and that of exporting to more than one
destination. Thus, wider and more efficient financial services are likely
to increase the number of exporters and boost exports' diversification.
Journal: Applied Economics
Pages: 4184-4199
Issue: 39
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026583
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026583
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Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4184-4199
Template-Type: ReDIF-Article 1.0
Author-Name: Shan-Ying Chu
Author-X-Name-First: Shan-Ying
Author-X-Name-Last: Chu
Author-Name: Hau Chyi
Author-X-Name-First: Hau
Author-X-Name-Last: Chyi
Title: Welfare use and children's longer-term achievement
Abstract:
We investigate the effects of mothers' welfare use on children's
longer-term performance. To address issues of improper comparison groups
and the endogenous nature of welfare participation, we focus on
less-educated single mothers and adopt a correction function approach.
Data are drawn from the National Longitudinal Survey of Youth 1979 -
Children and Young Adult from 1994 to 2010. Estimation results confirm the
positive longer-term effects of mothers' welfare use. On average, a child
whose mother used welfare in all 20 quarters after childbirth experiences
a 0.56-point increase in their yearly high school grade point average, is
12% more likely to graduate from high school and earns $1112.76 more in
the first-observed income than a child whose mother does not.
Journal: Applied Economics
Pages: 4200-4207
Issue: 39
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026584
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026584
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Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4200-4207
Template-Type: ReDIF-Article 1.0
Author-Name: Luc Arrondel
Author-X-Name-First: Luc
Author-X-Name-Last: Arrondel
Author-Name: Fr餩rique Savignac
Author-X-Name-First: Fr餩rique
Author-X-Name-Last: Savignac
Title: Risk management, housing and stockholding
Abstract:
This article investigates the possible explanations of the stockholding
puzzle by focusing on housing and other uninsurable risks (associated with
income, health and business). Taking the French household wealth survey
(Patrimoine 2004, French National Statistical Institute), we find that the
share of financial wealth invested in stocks depends on transaction and
information costs, risk aversion, exposure to real estate risk and, to a
lesser extent, labour market risk. These results are obtained by
controlling for endogenous home ownership status.
Journal: Applied Economics
Pages: 4208-4227
Issue: 39
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026585
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026585
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Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4208-4227
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan A. Batten
Author-X-Name-First: Jonathan A.
Author-X-Name-Last: Batten
Author-Name: Peter G. Szilagyi
Author-X-Name-First: Peter G.
Author-X-Name-Last: Szilagyi
Author-Name: Wagner
Author-X-Name-First:
Author-X-Name-Last: Wagner
Title: Should emerging market investors buy commodities?
Abstract:
One reason that investors hold commodities is to receive diversification
benefits. However, while an extensive set of existing studies demonstrate
diversification benefits when investors hold international stocks or
bonds, they are generally silent on the implications of holding
commodities. Using an asset pricing framework, we investigate the benefits
to investors from holding commodities, both individually and in
portfolios. Generally, commodity and stock markets are integrated,
although there are time-varying benefits to investors that are subject to
sample period selection and investment horizon. We show that Asian
investors receive positive risk adjusted returns in gold and rice markets
but not in any of the other commodity markets investigated. The risk
adjusted returns are time-varying: during the Asian financial crisis risk
adjusted returns were negative - a penalty for investing in commodities -
whereas during the global financial crisis the reverse was true and
investors earned positive excess returns. The time-varying nature of the
benefits that arise from diversification in commodities and their
breakdown during periods of crisis, highlight the problems that investors
may face when using commodities for long-term investment in addition to
traditional holdings of stocks and bonds.
Journal: Applied Economics
Pages: 4228-4246
Issue: 39
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026586
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026586
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Handle: RePEc:taf:applec:v:47:y:2015:i:39:p:4228-4246
Template-Type: ReDIF-Article 1.0
Author-Name: Eike Emrich
Author-X-Name-First: Eike
Author-X-Name-Last: Emrich
Author-Name: Christian Pierdzioch
Author-X-Name-First: Christian
Author-X-Name-Last: Pierdzioch
Title: Testing economic models of volunteer labour supply: some empirical evidence for the German Red Cross
Abstract:
We use a new data set collected by means of a questionnaire study of
volunteers of the German Red Cross to test predictions of three competing
economic models of volunteer labour supply: the public-goods model, the
private-consumption model and the human-capital model. The three competing
economic models make different predictions regarding the response of a
volunteer's labour supply to a change in the perceived labour supply of
other volunteers. Our empirical results lend support to the public-goods
model.
Journal: Applied Economics
Pages: 4247-4259
Issue: 40
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026587
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026587
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Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4247-4259
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Liu
Author-X-Name-First: Yu
Author-X-Name-Last: Liu
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Title: Evidence from Mexico on social status and violence against women
Abstract:
This study investigates the impact of relative social status on violence
against women in Mexico using state-level panel data. Relatively higher
female social status, measured by educational, economic and political
standings, is associated with lower homicide rates for women and lower
intimate partner violence rates. More importantly, different status
variables affect violence against women through different channels,
depending on the victim-offender relationship. The results are robust to
different specifications and different control variables. This study may
provide helpful guidelines to policy-makers attempting to identify more
effective means for deterring violence against women.
Journal: Applied Economics
Pages: 4260-4274
Issue: 40
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026588
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026588
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Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4260-4274
Template-Type: ReDIF-Article 1.0
Author-Name: Harry X. Wu
Author-X-Name-First: Harry X.
Author-X-Name-Last: Wu
Author-Name: Esther Y. P. Shea
Author-X-Name-First: Esther Y. P.
Author-X-Name-Last: Shea
Author-Name: Alice Shiu
Author-X-Name-First: Alice
Author-X-Name-Last: Shiu
Title: Has China's fast industrial growth been efficient? An industry-level investigation with a newly constructed data set
Abstract:
We adopt contemporaneous, nonradial and variable returns to scale
assumptions in a data envelopment analysis (DEA) exercise to address the
inefficiency problem in Chinese industries in different policy regimes
using a newly constructed data set for 24 Chinese manufacturing industries
in 1952-2008. While confirming that the central planning period was indeed
a 'graveyard' for productivity that entailed severe technical regress and
efficiency losses, we do not find a steady improvement in efficiency
during the reform period despite strong technical progress. We argue that
the resurgent prominence of the government and the state sector since the
late 1990s, especially following China's World Trade Organization
accession, has obstructed the efficiency improvement.
Journal: Applied Economics
Pages: 4275-4298
Issue: 40
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026589
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026589
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Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4275-4298
Template-Type: ReDIF-Article 1.0
Author-Name: Zeynel Abidin Ozdemir
Author-X-Name-First: Zeynel Abidin
Author-X-Name-Last: Ozdemir
Author-Name: Emre Aksoy
Author-X-Name-First: Emre
Author-X-Name-Last: Aksoy
Title: Are real exchanges rate series really persistent?: evidence from three commonwealth of independent states countries
Abstract:
This article sets out to examine the degree of persistence in the real
exchange rates of Kazakhstan, Kyrgyzstan and Russia, and tests the
validity of Purchasing power parity (PPP) using monthly data covering
1995:01-2013:12 period. The sum of autoregressive (AR) coefficients is
used in order to examine persistence of the real exchange rate series and
grid-bootstrap method is employed for the confidence intervals. The tests
performed suggest two results: (1) Covering the full sample and sub-sample
periods, excluding Kyrgyzstan in 1995:01-1998:07 and Russia in
2008:09-2013:12 periods, disregarding the structural breaks in the data
generating process, there is high persistency in real exchange rates; (2)
there is evidence in support of PPP covering the full sample for every
country except for Kyrgyzstan in 1995:01-1998:07 and Russia in
2008:09-2013:12 periods.
Journal: Applied Economics
Pages: 4299-4309
Issue: 40
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026590
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026590
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4299-4309
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios J. Dimitriou
Author-X-Name-First: Dimitrios J.
Author-X-Name-Last: Dimitriou
Author-Name: John C. Mourmouris
Author-X-Name-First: John C.
Author-X-Name-Last: Mourmouris
Author-Name: Maria F. Sartzetaki
Author-X-Name-First: Maria F.
Author-X-Name-Last: Sartzetaki
Title: Economic impact assessment of mega infrastructure pipeline projects
Abstract:
The economic development features for the decades after the Second World
War provide evidence that investments to new infrastructures are a key
driver in strengthening the national economy and enhancing nation's
productivity, as it creates economic benefits and additional income.
However, the decision for fund allocation and investments in mega
infrastructure pipeline projects often must be made in conditions that are
much more fraught with uncertainty. The key question in such decisions is
if the economic impact caused by the new project could be able to
essentially boost the economy by creating new jobs and generating new
income on one hand; and which are the business sectors expected to archive
the benefits of this investment. This article deals with the estimation of
the mega infrastructure pipeline project economic effects in economy. The
methodological framework is based on input-output approach providing
quantitative estimations about the economic impact of the project in terms
of new income and jobs. The numerical application deals with the
assessment of a cross-border crude oil pipeline project, connecting the
ports of Burgas (Bulgaria) and Alexandroupolis (Greece), establishing a
new transportation corridor for the crude oil from Black Sea to Southeast
Mediterranean.
Journal: Applied Economics
Pages: 4310-4322
Issue: 40
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026591
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026591
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4310-4322
Template-Type: ReDIF-Article 1.0
Author-Name: Chun Jiang
Author-X-Name-First: Chun
Author-X-Name-Last: Jiang
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: Revisiting Purchasing Power Parity in OECD
Abstract:
This study revisits Purchasing Power Parity theory (PPP) in the 34 OECD
countries during January 1994-August 2013. We use a new panel stationary
test with both sharp breaks and smooth shifts, a novel approach to panel
unit-root testing, proposed by Bahmani-Oskooee et al.
(2014). The results indicate that the PPP holds in half of the 34 OECD
countries. These results indicate the importance of proper modelling of
both sharp breaks and smooth shifts in real effective exchange rate series
of OECD countries.
Journal: Applied Economics
Pages: 4323-4334
Issue: 40
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1026592
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1026592
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4323-4334
Template-Type: ReDIF-Article 1.0
Author-Name: Nathan P. Hendricks
Author-X-Name-First: Nathan P.
Author-X-Name-Last: Hendricks
Author-Name: Aaron Smith
Author-X-Name-First: Aaron
Author-X-Name-Last: Smith
Title: Grouped coefficients to reduce bias in heterogeneous dynamic panel models with small T
Abstract:
We propose the grouped coefficients estimator to reduce bias in dynamic
panels with small T that have a multilevel structure to
the coefficient and factor loading heterogeneity. If groups are chosen
such that the within-group heterogeneity is small, then the grouped
coefficients estimator can lead to substantial bias reduction compared to
pooled GMM dynamic panel estimators. We also propose using a Wald test
that can be used to assess whether pooled estimators suffer from
heterogeneity bias. We illustrate the usefulness of grouped coefficients
with an application to labour demand in which the coefficients are grouped
by sub-sector. Our results suggest that the standard pooled estimates are
substantially biased.
Journal: Applied Economics
Pages: 4335-4348
Issue: 40
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1029112
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1029112
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Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4335-4348
Template-Type: ReDIF-Article 1.0
Author-Name: H. W. Lampe
Author-X-Name-First: H. W.
Author-X-Name-Last: Lampe
Author-Name: D. Hilgers
Author-X-Name-First: D.
Author-X-Name-Last: Hilgers
Author-Name: C. Ihl
Author-X-Name-First: C.
Author-X-Name-Last: Ihl
Title: Does accrual accounting improve municipalities' efficiency? Evidence from Germany
Abstract:
The stressed financial situation in the public sector and the continuous
aspiration for austerity in western governments and public bodies is
omnipresent. As one core element in the New Public Management shift,
Germany, like many other countries, has experienced significant reforms in
public sector accounting and reporting in the last decade. We analyse the
effect of new accounting and budgeting regimes. We therefore analyse the
cost efficiency of German local governments in the state of North
Rhine-Westphalia over 3 years using a stochastic frontier approach.
This study presents evidence for increased efficiency amongst
municipalities due to the adoption of accrual accounting.
Journal: Applied Economics
Pages: 4349-4363
Issue: 41
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030562
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030562
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Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4349-4363
Template-Type: ReDIF-Article 1.0
Author-Name: F. Kropfh䵦szlig;er
Author-X-Name-First: F.
Author-X-Name-Last: Kropfh䵦szlig;er
Author-Name: M. Sunder
Author-X-Name-First: M.
Author-X-Name-Last: Sunder
Title: A weighty issue revisited: the dynamic effect of body weight on earnings and satisfaction in Germany
Abstract:
We estimate the relationship between changes in the body mass index
(bmi) and wages or satisfaction, respectively, in a panel
of German employees. In contrast to previous findings, our dynamic models
indicate an inverse u-shaped association between bmi and
wages. As the implied maximum occurs in the 'overweight' category, the
positive trend in weight may not yet constitute a major limitation to
productivity. Further investigation points out a stronger association
among young workers and workers with jobs that are less protected. Work
satisfaction of young workers is associated with bmi
beyond the effect of earnings.
Journal: Applied Economics
Pages: 4364-4376
Issue: 41
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030563
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030563
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Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4364-4376
Template-Type: ReDIF-Article 1.0
Author-Name: Shang Wu
Author-X-Name-First: Shang
Author-X-Name-Last: Wu
Author-Name: Jacob R. Fooks
Author-X-Name-First: Jacob R.
Author-X-Name-Last: Fooks
Author-Name: Kent D. Messer
Author-X-Name-First: Kent D.
Author-X-Name-Last: Messer
Author-Name: Deborah Delaney
Author-X-Name-First: Deborah
Author-X-Name-Last: Delaney
Title: Consumer demand for local honey
Abstract:
How to best target and attract niche market consumers is an important
marketing problem for producers of specialty agricultural products. It is
particularly an issue in the honey market where consumers increasingly
face media messages regarding threats to honey bee health, honey
adulteration and health benefits of locally produced honey. Using auction
experiments, this research evaluates consumer behaviour related to
informational messages about honey that is produced locally, domestically
and internationally. Results from 115 adult consumers show that consumers'
demand for honey varies significantly based on the geographic location of
the honey's production, product packaging and the information they have
about the product. Consumers demonstrate greater demand for locally
produced honey, especially when provided information about negative
aspects of internationally produced honey that include adulteration. This
shows that such negative media attention on specialty products offers
small producers an opportunity to increase profitability by marketing
themselves as a specialized niche alternative.
Journal: Applied Economics
Pages: 4377-4394
Issue: 41
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030564
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030564
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Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4377-4394
Template-Type: ReDIF-Article 1.0
Author-Name: Phuong Anh Nguyen
Author-X-Name-First: Phuong Anh
Author-X-Name-Last: Nguyen
Author-Name: Michel Simioni
Author-X-Name-First: Michel
Author-X-Name-Last: Simioni
Title: Productivity and efficiency of Vietnamese banking system: new evidence using F䲥-Primont index analysis
Abstract:
This article aims to provide a clearer view on the recent evolutions of
the Vietnamese banking system that can be useful to public authority when
taking restructuring decisions. This article focuses on the evolution of
productivity of Vietnamese banks over the period 2008 to 2012, and on the
evolution of the different components of this productivity: technical
change, pure technical efficiency and mix and scale efficiency. The
methodology draws from very recent developments in index theory in the
design of multiplicative-complete economically ideal indexes, using
F䲥-Primont productivity indexes to measure productivity. This
methodology is applied to a balanced panel of Vietnamese banks. The
results complement observations usually made on the recent development of
the Vietnamese banking system. They show that the State Bank of Vietnam's
restructuring policy cannot focus only on either the insufficient size of
banks or a better management of these banks in terms of the mix of
outputs. Both must be considered simultaneously, not only through bank
mergers but also in setting management criteria in line with criteria
defined internationally.
Journal: Applied Economics
Pages: 4395-4407
Issue: 41
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030565
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030565
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Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4395-4407
Template-Type: ReDIF-Article 1.0
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Title: Responses of international stock markets to oil price surges: a regime-switching perspective
Abstract:
We propose an enhanced regime-switching model to investigate the
relationships between oil price surges and stock market cycles in five
oil-dependent countries. Our model accounts for the joint effects of the
West Texas Intermediate (WTI) and Brent oil markets and simultaneously
captures asymmetry, volatility persistence and regime shifts contained in
the underlying financial data. We find that stock market returns strongly
exhibit a regime-switching behaviour, but they react differently to the
increases in the price of oil. More precisely, the conditional volatility
of studied stock markets during the bear market phases is found to be less
affected by oil price surges than during the bull market phases. Whether
the effects of oil shocks are positive or negative depends greatly on the
degree of reliance on imported oil, the share of the cost of oil in the
national income and the degree of improvement in energy efficiency of a
given country. Finally, the relatively opposite effects of the WTI and
Brent oil markets suggest the potential of substitution between them as
well as the necessity of a diversification strategy of oil supply sources.
Journal: Applied Economics
Pages: 4408-4422
Issue: 41
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030566
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030566
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Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4408-4422
Template-Type: ReDIF-Article 1.0
Author-Name: Jos頌uis Lima
Author-X-Name-First: Jos頌uis
Author-X-Name-Last: Lima
Author-Name: Javier Nú
Author-X-Name-First: Javier
Author-X-Name-Last: Nú
Title: Does self-regulation work? Experimental evidence of the reputational incentives of Self-Regulatory Organizations
Abstract:
Self-regulation (SR) is a common way of enforcing quality in markets (such
as banking, financial services and several professions) and in a variety
of public and private organizations. We provide experimental evidence of
the reputational incentives of self-regulatory organizations (SROs) to
publicly disclose versus cover-up fraud in an incomplete information
environment. We find that observed behaviour is generally consistent with
Bayesian equilibrium when subjects are informed about the relative
likelihood of fraud detection by a 'vigilant' versus a 'lax' SRO type. In
particular, a fraud disclosure equilibrium is supported when subjects are
informed that the 'vigilant' SRO is more likely to detect fraud;
otherwise, a cover-up equilibrium is supported. However, when subjects are
not informed about the relative likelihood of fraud detection by the SRO
types (as expected in real SR situations), no equilibrium is strongly
supported. Our results suggest that in practice, the reputation-based
incentives for effective SR may be inherently ambiguous and weak.
Journal: Applied Economics
Pages: 4423-4441
Issue: 41
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030567
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030567
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Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4423-4441
Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio La Rocca
Author-X-Name-First: Maurizio
Author-X-Name-Last: La Rocca
Author-Name: Raffaele Staglianò
Author-X-Name-First: Raffaele
Author-X-Name-Last: Staglianò
Author-Name: Tiziana La Rocca
Author-X-Name-First: Tiziana
Author-X-Name-Last: La Rocca
Author-Name: Alfio Cariola
Author-X-Name-First: Alfio
Author-X-Name-Last: Cariola
Title: Investment cash flow sensitivity and financial constraint: a cluster analysis approach
Abstract:
This article sheds light on the mixed empirical evidence concerning
financial constraint and investment sensitivity to cash flow. The
literature suggests that measuring financial constraint is far from
straightforward, and we therefore propose a cluster analysis procedure to
identify unambiguous groups of constrained firms. We found the investment
results to be highly sensitive to cash flow for financial constraint
firms. Moreover, in line with previous research, our results showed that
the traditional criteria used to identify financially constrained firms
led to ambiguous interpretations. Overall, our results propose that the
cluster analysis can be used to encompass the various single-criterion
approaches, thereby providing a finer measurement of the financial
constraint construct and deeper insight into the relationship between
investment sensitivity to cash flow and financial constraint.
Journal: Applied Economics
Pages: 4442-4457
Issue: 41
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030568
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030568
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Handle: RePEc:taf:applec:v:47:y:2015:i:41:p:4442-4457
Template-Type: ReDIF-Article 1.0
Author-Name: Jeng-Yan Tsai
Author-X-Name-First: Jeng-Yan
Author-X-Name-Last: Tsai
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Title: How does equity capital cost affect bank performance during a financial crisis?
Abstract:
This article theoretically examines how equity capital cost affects return
performance and safety of a bank and how this effect varies across a
financial crisis comparing to a normal time when the bank manager's
performance reveals the like of higher equity return and the dislike of
higher equity risk. We derive two main results. First, an increase in the
bank's equity capital cost from an increase of the interest rate of the
Federal funds results in a reduced loan risk-taking at an increased
optimal bank interest margin, implying better bank performance. Second, by
ignoring the dislike, we find that the better performance is reinforced
during a financial crisis but is reduced during a normal time. Financial
crises and the dislike preference as such contribute a relatively low
return and the stability of banking activities.
Journal: Applied Economics
Pages: 4459-4474
Issue: 42
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030569
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030569
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Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4459-4474
Template-Type: ReDIF-Article 1.0
Author-Name: Horst Gischer
Author-X-Name-First: Horst
Author-X-Name-Last: Gischer
Author-Name: Holger Müller
Author-X-Name-First: Holger
Author-X-Name-Last: Müller
Author-Name: Toni Richter
Author-X-Name-First: Toni
Author-X-Name-Last: Richter
Title: How to measure the market power of banks in the lending business accurately: a segment-based adjustment of the Lerner Index
Abstract:
Numerous empirical studies use the price-cost-margin-based Lerner Index
(LI) to assess the general market power of banks. A common procedure
within those LI applications is to approximate the market price required
for the LI measurement as the ratio of a bank's total revenues to total
assets. We discuss the major flaws of this aggregated procedure and
propose an adjusted (i.e. business segment-orientated) LI approach, which
is then applied to assess the market power of banks in the specific
lending business at the country level. Our empirical study is based on an
original data set containing all interest-related categories (weighted by
the respective loan as well as deposit volumes) in the countries of the
European Monetary Union zone (EMU) from 2003 to 2013. Our results reveal
that the country-specific market power of banks in the lending business
has been substantially underestimated in previous studies based on
aggregated outputs. For example, averaged across the five most important
economies in the EMU, we detect a calibration factor of four. Our findings
corroborate the economic notion that the interest-bearing lending business
is a more locally separated, and thus profitable, segment in which
competition is attenuated.
Journal: Applied Economics
Pages: 4475-4483
Issue: 42
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1030570
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1030570
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Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4475-4483
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Sagarika Mishra
Author-X-Name-First: Sagarika
Author-X-Name-Last: Mishra
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Title: New empirical evidence on the bid-ask spread
Abstract:
In this article, we model the determinants of spread for 734 firms listed
on the NYSE over the period 1 January 1998 to 31 December 2008. We propose
a panel data model of the determinants of spread. There are four main
messages emerging from our work. We find a statistically significant
effect of volume on spread inconsistent with the work of Johnson (2008).
On price, we find mixed results, consistent with the literature. On the
effect of price volatility on spread, our results are completely the
opposite of the cross-sectional literature but sides with the relatively
recent work of Chordia et al. (2001). We allow for
persistence of spread as a determinant of spread and find significant
evidence of spread persistence across all 16 sectors. Finally, we examine
size effects and find statistically strong evidence of size effects based
on the relationship between price and spread, persistence and spread, and
volatility and spread.
Journal: Applied Economics
Pages: 4484-4500
Issue: 42
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031870
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031870
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Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4484-4500
Template-Type: ReDIF-Article 1.0
Author-Name: Yensen Ni
Author-X-Name-First: Yensen
Author-X-Name-Last: Ni
Author-Name: Paoyu Huang
Author-X-Name-First: Paoyu
Author-X-Name-Last: Huang
Title: Convertible bonds issued in the bear market period: evidence from Taiwan
Abstract:
We argue that the behaviour of enterprises might be modified or even
changed completely after black swan events occur. We explore why high-tech
firms preferred to issue convertible bonds in 2001-2003, the bear market
period after the tech bubble in Taiwan. We show that firms issuing
convertible bonds are those with low directors' holding ratio and high
debt ratio. Results also reveal that corporate governance was worse in the
firms that issued convertible bonds, as revealed by the finding that the
directors' holding ratio of these issuing firms declined considerably.
This finding also implies that corporate governance issues become more
serious after black swan events.
Journal: Applied Economics
Pages: 4501-4510
Issue: 42
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031871
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031871
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Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4501-4510
Template-Type: ReDIF-Article 1.0
Author-Name: James Peery Cover
Author-X-Name-First: James Peery
Author-X-Name-Last: Cover
Author-Name: Hye-Jin Lee
Author-X-Name-First: Hye-Jin
Author-X-Name-Last: Lee
Title: Do market prices aggregate information about macroeconomic uncertainty (or risk)?
Abstract:
This article examines several economic variables that represent either
confidence in future economic conditions or the degree of risk/uncertainty
about future conditions in order to determine which contain more
information about future employment and output. Some of these variables
are prices, while others are from surveys. Causality tests, historical
decompositions within a VAR and out-of-sample forecasts are among the
tools used. This article concludes that monthly stock returns contain much
more information about future economic conditions than the other
variables. The spread between Moody's BAA and AAA bonds, the spread
between the constant maturity 10-year government bond and the federal
funds rate, as well as uncertainty in future economic conditions as
measured by the Federal Reserve Bank of Philadelphia's Business Outlook
Survey also provide information about future economic conditions. Notably,
this article finds that monthly stock returns contain more information
about future economic conditions than does the vix and
that variables based on market prices provide more information than survey
data. This result provides some support for the notion that market prices
aggregate information.
Journal: Applied Economics
Pages: 4511-4534
Issue: 42
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031872
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031872
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Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4511-4534
Template-Type: ReDIF-Article 1.0
Author-Name: Wencong Lu
Author-X-Name-First: Wencong
Author-X-Name-Last: Lu
Author-Name: Jianfeng Huang
Author-X-Name-First: Jianfeng
Author-X-Name-Last: Huang
Author-Name: Oliver Musshoff
Author-X-Name-First: Oliver
Author-X-Name-Last: Musshoff
Title: Climate threshold, financial hoarding and economic growth
Abstract:
We use an iterative finite difference method to establish theoretical
models that reflect the relationships among climate threshold, financial
hoarding and economic growth. We build a simultaneous equations model to
conduct an empirical analysis based on China's statistical data from 1979
to 2012. Our study yields the following results: China's climate threshold
has shown a zigzag-shaped rising trend since 1979; the main reasons for
the rapid expansion of financial hoarding were high savings rate, savings
leakage, higher marginal efficiency of financial hoarding compared to
capital efficiency or higher internal creativity of the financial sector;
there were positive cumulative effects between financial hoarding and
economic growth, which were significantly inhibited by climate threshold;
the climate threshold had discrepant influences on different industries.
To achieve a balanced economy, more money should be invested in the real
sector to appropriately reduce the rate of savings leakage; the financial
sector should move from scale expansion to service efficiency improvements
to increase its marginal contribution to the economy and to enhance
capital efficiency; the real sector should improve technological
innovation and speed up the adaptive adjustment in climate-sensitive
industries to move from economic growth to advanced development.
Journal: Applied Economics
Pages: 4535-4548
Issue: 42
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031873
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031873
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Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4535-4548
Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Title: International spillovers from US forward guidance to equity markets
Abstract:
We quantify the international spillovers of explicit Federal Open Market
Committee (FOMC) policy rate guidance used as an unconventional monetary
policy tool at the zero lower bound of the policy rate on international
equity markets, considering equity indices of both advanced and emerging
economies. We find that stimulatory explicit FOMC policy rate guidance
announcements at the zero lower bound led to higher equity prices in a
number of advanced and emerging economies. Moreover, we find that equity
indices of economies with lower sovereign ratings rose by more, consistent
with the risk-taking channel of monetary policy.
Journal: Applied Economics
Pages: 4549-4560
Issue: 42
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031874
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031874
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Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4549-4560
Template-Type: ReDIF-Article 1.0
Author-Name: Kavita Sirichand
Author-X-Name-First: Kavita
Author-X-Name-Last: Sirichand
Author-Name: Simeon Coleman
Author-X-Name-First: Simeon
Author-X-Name-Last: Coleman
Title: International yield curve comovements: impact of the recent financial crisis
Abstract:
Empirical evidence on international yield comovement is sparse and lacks
consensus. Employing a dynamic correlation approach, we show that during
the recent global financial crisis, euro area yields have ceased to comove
with the yields of the other international markets - Canada, UK and US.
Some implications of our results are discussed.
Journal: Applied Economics
Pages: 4561-4573
Issue: 43
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031875
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031875
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Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4561-4573
Template-Type: ReDIF-Article 1.0
Author-Name: James S. Fackler
Author-X-Name-First: James S.
Author-X-Name-Last: Fackler
Author-Name: W. Douglas McMillin
Author-X-Name-First: W. Douglas
Author-X-Name-Last: McMillin
Title: Bernanke versus Taylor: a post mortem
Abstract:
Our analysis sheds light on the issue of whether the monetary policy
contributed to the recent housing boom and bust. We have estimated and
analysed a model that allows a comparison between the actual policy and
several alternative Taylor rules. When the Taylor rule path was computed
using revised data and the deflator for the GDP, we found a notable impact
on key housing market variables, supporting Taylor's critique of the Fed
policy. However, the bulk of our evidence suggests that the policy as it
would have been conducted under our real-time Taylor rules would not have
had any significant impact on the housing market variables. This
conclusion is robust with regard to the price index used as well as the
relative weights used on the inflation and output gaps.
Journal: Applied Economics
Pages: 4574-4589
Issue: 43
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031876
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031876
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Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4574-4589
Template-Type: ReDIF-Article 1.0
Author-Name: Elisabetta Magnani
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Magnani
Author-Name: Rong Zhu
Author-X-Name-First: Rong
Author-X-Name-Last: Zhu
Title: Social mobility and inequality in urban China: understanding the role of intergenerational transmission of education
Abstract:
China's rapid economic growth since the late 1980s has been accompanied by
great economic and social transformations, which have resulted in a sharp
increase in income inequality. This article contributes to the literature
of social mobility in China by examining the impact of parental education
on the education of their children. Using the 1990 and 2000 Chinese
Population Censuses, we employ nonparametric estimation strategies to
provide a systematic investigation of intergenerational transmission of
education in urban China. We find evidence of increasing parents-children
educational correlations. Our results raise concerns regarding economic
inequality in urban China as high intergenerational persistence of
education is expected to be a barrier to equal opportunities in children's
education attainments and their future labour market outcomes.
Journal: Applied Economics
Pages: 4590-4606
Issue: 43
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031877
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031877
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Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4590-4606
Template-Type: ReDIF-Article 1.0
Author-Name: Din 祲 Afat
Author-X-Name-First: Din 祲
Author-X-Name-Last: Afat
Author-Name: Marta G-Puig
Author-X-Name-First: Marta
Author-X-Name-Last: G-Puig
Author-Name: Simosvilla-Rivero
Author-X-Name-First: Sim
Author-X-Name-Last: Sosvilla-Rivero
Title: The failure of the monetary model of exchange rate determination
Abstract:
In this article, we test three popular versions of the monetary model
(flexible price, forward-looking and real interest differential models)
for the OECD member countries by applying Johansen cointegration
technique. Based on country-by-country analysis, we conclude that monetary
models do not provide the expected results. We reveal several shortcomings
of the models and examine the building blocks of the fundamental version.
Although researchers always blame the deviations from purchasing power
parity as the reason for the failure of the monetary model, our analysis
indicates that invalidity of Keynesian money demand function is also
responsible for unfavourable results.
Journal: Applied Economics
Pages: 4607-4629
Issue: 43
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1031878
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1031878
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Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4607-4629
Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Chien Chang
Author-X-Name-First: Chia-Chien
Author-X-Name-Last: Chang
Author-Name: Te-Chung Hu
Author-X-Name-First: Te-Chung
Author-X-Name-Last: Hu
Author-Name: Chiu-Fen Kao
Author-X-Name-First: Chiu-Fen
Author-X-Name-Last: Kao
Author-Name: Ya-Chi Chang
Author-X-Name-First: Ya-Chi
Author-X-Name-Last: Chang
Title: Early warning signals using AVaRs of infinitely divisible GARCH models -- evidence from stock index markets
Abstract:
Classical time series models have failed to properly assess the risks that
are associated with large adverse stock price behaviour. This article
contributes to autoregressive moving average model-GARCH (ARMA-GARCH)
models with standard infinitely divisible innovations and assesses the
performance of these models by comparing them with other time series
models that have normal innovation. We discuss the limitations of value at
risk (VaR) and aim to develop early warning signal models using average
value at risk (AVaRs) based on the ARMA-GARCH model with standard
infinitely divisible innovations. Empirical results for the daily Dow
Jones Industrial Average Index, the England Financial Times Stock Exchange
100 Index and the Japan Nikkei 225 Index reveal that estimating AVaRs for
the ARMA-GARCH model with standard infinitely divisible innovations offers
an improvement over prevailing models for evaluating stock market risk
exposure during periods of distress in financial markets and provides a
suitable early warning signal in both extreme events and highly volatile
markets.
Journal: Applied Economics
Pages: 4630-4652
Issue: 43
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1032209
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1032209
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Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4630-4652
Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Hsi Chou
Author-X-Name-First: Meng-Hsi
Author-X-Name-Last: Chou
Author-Name: Gee San
Author-X-Name-First: Gee
Author-X-Name-Last: San
Title: Labour quality in Taiwan: measurement and contribution to economic growth
Abstract:
This article compiles labour input indices that capture both employment
changes and quality improvement of labour in Taiwan, from 1994 to 2011. Up
to 77.19% of average annual labour input growth is from quality
improvement. Further decomposition reveals that the most important source
of growth is educational attainment, followed by age structure. Moreover,
we find that Taiwan's average annual GDP growth rate does not result from
capital investment but from the contribution of a stable labour input to
economic growth. Taiwan is a newly industrialized country, but because of
the diminishing returns to capital, the catch-up effect has been slower
than hoped. Additional capital investment has a relatively small effect on
productivity, and the main source of the continuous economic growth rate
is from labour quality, especially from highly skilled human capital.
Making good use of these human resources creates a stable source of
sustained economic growth.
Journal: Applied Economics
Pages: 4653-4669
Issue: 43
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1034837
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034837
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Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4653-4669
Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Yu Hsieh
Author-X-Name-First: Tsung-Yu
Author-X-Name-Last: Hsieh
Title: Information disclosure and price manipulation during the pre-closing session: evidence from an order-driven market
Abstract:
On 20 February 2012, the Taiwan Stock Exchange Corporation launched an
order-matching simulation mechanism for five minutes during the start of
the pre-closing session, in order to increase information disclosure
during this period (13:25-13:30). Pre-closing information disclosure
significantly reduces both trading costs and closing-price volatility, as
well as price manipulation. The decrease in price manipulation found in
this work is due to pre-closing information disclosure, not the behaviour
of investors shifting to an earlier time. Further, if a stock price rises
or falls by more than 3.5% in the simulation in the last minute during the
closing session, trading of the stock will be suspended for two minutes
from 13:31 to reduce volatility. However, this trading mechanism
(suspended-closing) does not seem to have achieved the intended goals of
the authorities, as it has not been able to significantly reduce
closing-price volatility and price manipulation.
Journal: Applied Economics
Pages: 4670-4684
Issue: 43
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1051656
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051656
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Handle: RePEc:taf:applec:v:47:y:2015:i:43:p:4670-4684
Template-Type: ReDIF-Article 1.0
Author-Name: Alejandro C. Garc𫑃intado
Author-X-Name-First: Alejandro C.
Author-X-Name-Last: Garc𫑃intado
Author-Name: Diego Romero-Ávila
Author-X-Name-First: Diego
Author-X-Name-Last: Romero-Ávila
Author-Name: Carlos Usabiaga
Author-X-Name-First: Carlos
Author-X-Name-Last: Usabiaga
Title: A PANIC analysis on regional and sectoral inflation: the Spanish case
Abstract:
This article studies the stochastic properties of several inflation rates
for the Spanish economy using the consumer price index (CPI) for the 17
regions and 12 groups of goods and services, and the producer price index
(PPI) for 26 industrial sectors. To this end, we employ the panel analysis
of nonstationarity in idiosyncratic and common components (PANIC) approach
proposed by Bai and Ng (2004, 2010). This methodology enables us to
decompose the observed inflation rate series into a common and an
idiosyncratic component, thus allowing us to identify the exact source of
nonstationarity. Our analysis provides strong evidence of the presence of
a common stochastic trend driving the observed series forming the panel of
CPI-based inflation rates for the regions. This, coupled with the presence
of a jointly stationary idiosyncratic component, implies the existence of
pairwise cointegration across the regional CPI-based inflation rates,
which show a clear pattern of convergence over time. This gives an
indication of increased geographical homogeneity in consumption patterns.
The evidence for the panels of CPI-based inflation of groups of goods and
services and PPI-based inflation of industrial sectors indicates the
existence of four independent common stochastic trends. This, combined
with jointly stationary idiosyncratic series, provides much weaker
evidence of cross-cointegration for these two panels.
Journal: Applied Economics
Pages: 4685-4713
Issue: 44
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1034838
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034838
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Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4685-4713
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Maderitsch
Author-X-Name-First: Robert
Author-X-Name-Last: Maderitsch
Title: Spillovers from the USA to stock markets in Asia: a quantile regression approach
Abstract:
This article analyses return spillovers from the USA to stock markets in
Asia by means of quantile regressions. Traditional studies consider
spillovers as effects of the conditional means of foreign returns onto the
conditional means of chronologically succeeding domestic markets' returns.
We, by contrast, study the full range of quantiles of the conditional
distribution of the domestic markets' returns. This enables us to document
the detailed structure of spillovers across return quantiles. Generally,
we find spillovers from the USA to Asia to be negative. Specifically,
however, we reveal an asymmetric structure of spillovers with an
increasing negative magnitude from lower to upper return quantiles.
Theoretically, this pattern is consistent with an asymmetric overreaction
of traders in Asia to news from the US market. Extensions from the
baseline model further suggest the presence of contagion throughout the
financial crisis of 2007-2008 as well as of calm-down effects over
weekends.
Journal: Applied Economics
Pages: 4714-4727
Issue: 44
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1034839
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034839
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Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4714-4727
Template-Type: ReDIF-Article 1.0
Author-Name: O. Poldin
Author-X-Name-First: O.
Author-X-Name-Last: Poldin
Author-Name: D. Valeeva
Author-X-Name-First: D.
Author-X-Name-Last: Valeeva
Author-Name: M. Yudkevich
Author-X-Name-First: M.
Author-X-Name-Last: Yudkevich
Title: Choice of specialization: do peers matter?
Abstract:
Social influence is an important factor in learning and decision-making.
We estimate peer influence on student choice of specialization using data
on undergraduate students of a Russian university. Information about
individual social ties has been gathered from a questionnaire survey. We
show that specialization choice is significantly influenced by friends as
well as by study partners. The strongest effect is produced by friends who
are study partners and those who have similar academic achievements.
Reciprocal friendship ties have a stronger influence on the choice than
nonreciprocal ones. Also, the decision is affected by classmates with
similar academic achievement. The results allow us to better understand
the mechanisms of peer effects in the specialization choice.
Journal: Applied Economics
Pages: 4728-4740
Issue: 44
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1034840
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034840
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Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4728-4740
Template-Type: ReDIF-Article 1.0
Author-Name: C. L-Andi
Author-X-Name-First: C.
Author-X-Name-Last: L-Andi
Author-Name: A. Iglesias-Casal
Author-X-Name-First: A.
Author-X-Name-Last: Iglesias-Casal
Author-Name: M. C. L-Penabad
Author-X-Name-First: M. C.
Author-X-Name-Last: L-Penabad
Author-Name: J. M. Maside-Sanfiz
Author-X-Name-First: J. M.
Author-X-Name-Last: Maside-Sanfiz
Title: The solvency of financial institutions in Spain: lessons from securitization
Abstract:
On analysing a sample of Spanish banks, we find that securitization has a
slightly negative impact on the soundness of the issuing entity. An
unbalanced dynamic panel model was estimated using the forward orthogonal
deviations GMM method and used to analyse 537 traditional securitizations
issued by 61 banks between 1998 and 2012. The analysis revealed that the
entities' soundness became weaker immediately prior to the crisis, but
this effect became insignificant after 2007. Securitization has
facilitated a process of regulatory capital arbitrage leading to lower
capital requirements while, at the same time, giving rise to a slight
worsening of the quality of the originators' portfolios. It was found that
profitability, liquidity and inflation positively affect solvency, while
changes in short-term interest rates affect it negatively.
Journal: Applied Economics
Pages: 4741-4753
Issue: 44
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1034841
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034841
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Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4741-4753
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Omer
Author-X-Name-First: Muhammad
Author-X-Name-Last: Omer
Author-Name: Jakob De Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: De Haan
Author-Name: Bert Scholtens
Author-X-Name-First: Bert
Author-X-Name-Last: Scholtens
Title: An empirical analysis of excess interbank liquidity: a case study of Pakistan
Abstract:
We investigate the drivers of excess interbank liquidity in Pakistan,
using the Autoregressive Distributed Lag approach on weekly data for
December 2005 to July 2011. We find that the financing of the government
budget deficit by the central bank and nonbanks leads to persistence in
excess liquidity. Moreover, we identify a structural shift in the
interbank market in June 2008. Before June 2008, low credit demand was
driving the excess liquidity holdings by banks. After June 2008, banks'
precautionary investments in risk-free securities drive excess liquidity
holdings. Monetary policy is less effective if banks hold excess liquidity
for precautionary reasons.
Journal: Applied Economics
Pages: 4754-4776
Issue: 44
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2015.1034842
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034842
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Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4754-4776
Template-Type: ReDIF-Article 1.0
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Huy Nguyen Anh Pham
Author-X-Name-First: Huy Nguyen Anh
Author-X-Name-Last: Pham
Author-Name: Anthony Scundi
Author-X-Name-First: Anthony
Author-X-Name-Last: Scundi
Author-Name: Wai Han Teoh
Author-X-Name-First: Wai Han
Author-X-Name-Last: Teoh
Title: The effects of multilateral trading systems on risk and return in equity markets
Abstract:
The event study methodology of Brown and Warner (1985) is adopted and
augmented to evaluate the effect of the launch of multilateral trading
systems on risk and return in equity markets. The methodology is
supplemented with various techniques, such as the nonparametric ranking
test and kernel regression, to find out if announcements about the
introduction of Chi-X Australia generated abnormal returns (ARs). Asset
pricing models are fitted with interaction variables, while GARCH,
threshold ARCH (TARCH), exponential GARCH (EGARCH) and power-ARCH (PARCH)
are used to determine changes in systematic risk. We find evidence in
favour of Fisher's separation theorem and detect a new market anomaly,
which we call the 'Fisher market anomaly'. Our results show that Chi-X
system testings affect ARs. Consistent with the adaptive expectations
theory, we confirm that the first announcement about the launch of Chi-X
affected systematic risk the most. In addition, we identify industry and
firm effects in risk analysis.
Journal: Applied Economics
Pages: 4777-4792
Issue: 44
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1034843
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034843
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Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4777-4792
Template-Type: ReDIF-Article 1.0
Author-Name: C. P. Barros
Author-X-Name-First: C. P.
Author-X-Name-Last: Barros
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Title: Investment and saving in Angola and the Feldstein-Horioka puzzle
Abstract:
This article analyses the relationship between investment and savings for
Angola using the Feldstein-Horioka puzzle, with monthly data from January
2000 to December 2013. Integer and fractional integration and
cointegration techniques are employed to investigate the relationship
between investment and savings. Several regression specifications are
employed, concluding that the Feldstein-Horioka puzzle is not validated
for the Angolan economy. Policy implications are derived.
Journal: Applied Economics
Pages: 4793-4800
Issue: 44
Volume: 47
Year: 2015
Month: 3
X-DOI: 10.1080/00036846.2015.1034844
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034844
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:44:p:4793-4800
Template-Type: ReDIF-Article 1.0
Author-Name: A. D. Hall
Author-X-Name-First: A. D.
Author-X-Name-Last: Hall
Author-Name: S. E. Satchell
Author-X-Name-First: S. E.
Author-X-Name-Last: Satchell
Author-Name: P. J. Spence
Author-X-Name-First: P. J.
Author-X-Name-Last: Spence
Title: Evaluating the impact of inequality constraints and parameter uncertainty on optimal portfolio choice
Abstract:
We present new analytical results for the impact of portfolio weight
constraints on an investor's optimal portfolio when parameter uncertainty
is taken into account. While it is well known that parameter uncertainty
and imposing weight constraints results in reduced certainty equivalent
returns, in the general case, there are no analytical results. In a
special case, commonly used in the funds management literature, we derive
analytical expression for the certainty equivalent loss that does not
depend on the risk aversion parameter. We illustrate our theoretical
results using hedge fund data, from the perspective of a fund-of-fund
manager. Our contribution is to formalize the framework to investigate
this problem, as well as providing tractable analytical solutions that can
be implemented using either simulated or asset manager returns.
Journal: Applied Economics
Pages: 4801-4813
Issue: 45
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1034845
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1034845
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Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4801-4813
Template-Type: ReDIF-Article 1.0
Author-Name: Jos頄aniel Buend𨁁zor
Author-X-Name-First: Jos頄aniel
Author-X-Name-Last: Buend𨁁zor
Author-Name: Mar𨁤el Mar Sᮣhez de la Vega
Author-X-Name-First: Mar𨁤el Mar
Author-X-Name-Last: Sᮣhez de la Vega
Title: Human capital effects on labour productivity in EU regions
Abstract:
Recent years have seen a wealth of articles on spatial effects in
empirical growth specifications. Endogenous growth models, together with
the arguments of the new economic geography, have led to spatial
dependence being identified with the existence of externalities which
cross regional borders. This article continues in this line of research
and offers new empirical evidence on the contribution of human capital and
agglomeration economies to the differences in productivity in European
Union regions. The article uses the spatial Durbin model with different
weight matrices to explain the relation between human capital variables
and labour productivity, with the advantage that it allows the effects of
spatial externalities associated to human capital and agglomeration
economies to be quantified.
Journal: Applied Economics
Pages: 4814-4828
Issue: 45
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1037434
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037434
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Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4814-4828
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Munasib
Author-X-Name-First: Abdul
Author-X-Name-Last: Munasib
Author-Name: Xi Tian
Author-X-Name-First: Xi
Author-X-Name-Last: Tian
Title: Impact of institutions on social network formation: communist party membership and social network investment in China
Abstract:
Using the 2003 wave of China General Social Survey (2003CGSS), we study
the influence of the communist party on individual's social networks in
urban China and, thereby, present a case of socio-political institutions
being an important ingredient in social network formation. We adopt a
counterfactual framework and estimate the effect of communist party
membership on social network investment as an average treatment effect. We
find the treatment to be significant.
Journal: Applied Economics
Pages: 4829-4846
Issue: 45
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1037435
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037435
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Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4829-4846
Template-Type: ReDIF-Article 1.0
Author-Name: Ajay Kumar Mishra
Author-X-Name-First: Ajay Kumar
Author-X-Name-Last: Mishra
Author-Name: Thomas H. McInish
Author-X-Name-First: Thomas H.
Author-X-Name-Last: McInish
Author-Name: Trilochan Tripathy
Author-X-Name-First: Trilochan
Author-X-Name-Last: Tripathy
Title: Price movement and trade size on the National Stock Exchange of India
Abstract:
Using data for the National Stock Exchange of India, we examine three
hypotheses about which trades move prices. The Stealth Trading Hypothesis
proposes that cumulative price changes (CPCs) are concentrated in
particular trade sizes due to the strategic trading of informed traders.
We find that depending on market conditions, from 60% to 80% of the CPC is
concentrated in small trade sizes, with almost all of the remaining price
change concentrated in medium trade sizes. These results support the
Stealth Trading Hypothesis.
Journal: Applied Economics
Pages: 4847-4854
Issue: 45
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1037436
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037436
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Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4847-4854
Template-Type: ReDIF-Article 1.0
Author-Name: Cheng Yuan
Author-X-Name-First: Cheng
Author-X-Name-Last: Yuan
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Title: Factors affecting the demand for insurance in China
Abstract:
China, the largest developing country in the world, has achieved rapid
development of insurance market since the reform and opening up, and the
demand for insurance has significantly increased in recent years. Using
the provincial data between 2000 and 2012, this article attempts to
examine the factors that affect the demand for overall insurance, life
insurance and nonlife insurance in China. Empirical results indicate that
level of income, development of insurance market and level of
marketization are the common factors; level of education, development of
social security pension, children dependency ratio and elderly dependency
ratio mainly affect the demand for life insurance; and inflation mainly
affects the demand for nonlife insurance. Furthermore, we particularly
investigate the regional differences in the effects of affecting factors
between Eastern China, Central China and Western China.
Journal: Applied Economics
Pages: 4855-4867
Issue: 45
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1037437
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037437
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4855-4867
Template-Type: ReDIF-Article 1.0
Author-Name: Aurora Garc𫑇allego
Author-X-Name-First: Aurora
Author-X-Name-Last: Garc𫑇allego
Author-Name: Nikolaos Georgantz
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Georgantz
Author-Name: Joan Martontaner
Author-X-Name-First: Joan
Author-X-Name-Last: Martontaner
Author-Name: Teodosio P鲥z-Amaral
Author-X-Name-First: Teodosio
Author-X-Name-Last: P鲥z-Amaral
Title: (How) Do research and administrative duties affect university professors' teaching?
Abstract:
We analyse the interaction between university professors' teaching quality
and their research and administrative activities. Our sample is a
high-quality individual panel data set from a medium-size public Spanish
university that allows us to avoid several types of biases frequently
encountered in the literature. Although researchers teach roughly 20% more
than nonresearchers, their teaching quality is also 20% higher.
Instructors with no research are 5 times more likely than the rest to be
among the worst teachers. Over much of the relevant range, we find a
nonlinear and positive relationship between research output and teaching
quantity on teaching quality. Our conclusions may be useful for
decision-makers in universities and governments.
Journal: Applied Economics
Pages: 4868-4883
Issue: 45
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1037438
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037438
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Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4868-4883
Template-Type: ReDIF-Article 1.0
Author-Name: Alex YiHou Huang
Author-X-Name-First: Alex YiHou
Author-X-Name-Last: Huang
Title: Value at risk estimation by threshold stochastic volatility model
Abstract:
This article proposes a threshold stochastic volatility model that
generates volatility forecasts specifically designed for value at risk
(VaR) estimation. The method incorporates extreme downside shocks by
modelling left-tail returns separately from other returns. Left-tail
returns are generated with a t-distributional process
based on the historically observed conditional excess kurtosis. This
specification allows VaR estimates to be generated with extreme downside
impacts, yet remains empirically widely applicable. This article applies
the model to daily returns of seven major stock indices over a 22-year
period and compares its forecasts to those of several other forecasting
methods. Based on back-testing outcomes and likelihood ratio tests, the
new model provides reliable estimates and outperforms others.
Journal: Applied Economics
Pages: 4884-4900
Issue: 45
Volume: 47
Year: 2015
Month: 9
X-DOI: 10.1080/00036846.2015.1037439
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037439
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:45:p:4884-4900
Template-Type: ReDIF-Article 1.0
Author-Name: Gil-Alana
Author-X-Name-First:
Author-X-Name-Last: Gil-Alana
Author-Name: Andrea Mervar
Author-X-Name-First: Andrea
Author-X-Name-Last: Mervar
Author-Name: Payne
Author-X-Name-First:
Author-X-Name-Last: Payne
Title: Measuring persistence in Croatian tourism: evidence from the Adriatic region
Abstract:
This study examines the degree of persistence in foreign tourist arrivals
and overnight stays for seven Croatian coastal counties over the period
January 1998 to December 2013 using fractional integration techniques. Our
findings reveal that the respective regional tourism indicators exhibit
seasonal unit roots which require seasonal first differences to render the
respective time series stationary. With respect to the long-run evolution
of the respective time series, both the parametric and semi-parametric
fractional integration approaches show the degree of persistence is
greater than zero, but significantly less than one for the majority of the
coastal counties. Impulse response analysis reveals indeed shocks to the
deseasonalized time series, either foreign tourist arrivals or foreign
tourist overnight stays, appear short-lived with the exception of Istria
and Primorje-Gorski kotar counties. Policy implications of the results are
also discussed.
Journal: Applied Economics
Pages: 4901-4917
Issue: 46
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1037440
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1037440
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4901-4917
Template-Type: ReDIF-Article 1.0
Author-Name: Faustino
Author-X-Name-First:
Author-X-Name-Last: Faustino
Author-Name: Matos
Author-X-Name-First:
Author-X-Name-Last: Matos
Title: Exports, productivity and innovation: new firm level empirical evidence
Abstract:
This article examines the determinants of Portuguese exports, applying
data from 277 manufacturing firms for the period 2006-2010. In 2010, these
firms accounted for about 47% of total Portugal's exports. Both the static
and dynamic results of the estimated models confirm the positive influence
of productivity on variations in exports. The dynamic estimations also
suggest that exports in the previous period hold a positive effect on
contemporaneous exports, confirming the Roberts and Tybout (1997) sunk
cost hypothesis for exports. In the dynamic analysis, the labour costs and
the size of the firm do not have a statistically significant effect on
Portuguese exports with the findings also pointing to increased
expenditure on research and development (R&D) generating no statistically
significant effect on exports. The lagged R&D expenditure was also
insignificant in explaining the change of Portuguese exports. Thus, these
results suggest that applying a product or process innovation measure
returns better results than indirect measures such as R&D expenditure.
Journal: Applied Economics
Pages: 4918-4933
Issue: 46
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1039700
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039700
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Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4918-4933
Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Sustainability of current account deficits in India: an intertemporal perspective
Abstract:
This study examines the sustainability of current account deficits (CADs)
and the validity of intertemporal budget constraint (IBC) in India. The
long-run model is estimated on annual data for the period 1950-1951 to
2009-2010. The optimal single-equation and maximum-likelihood (ML) system
estimates of the model provide a consistent support for the long-run
relationship between imports and exports. The OLSGH estimates provide no
support and that ML system estimates a consistent support for
cointegration in both the models estimated with one and two structural
breaks in level. The new cointegration breakdown tests generally suggest
that the cointegration prevails from 1951 to 2010. The evidence supporting
the cointegration between imports and exports overwhelms the evidence
providing a mixed or no support for cointegration. The estimates of slope
parameter above zero and the dominant support for cointegration between
imports and exports vindicate the validity of IBC and the sustainability
of CADs. The short-term management strategies need to be accompanied by
long-term improvements in productivity to reduce inflation, lever up the
competitiveness of exports and ensure the sustainability of the external
value of domestic currency.
Journal: Applied Economics
Pages: 4934-4951
Issue: 46
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1039701
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039701
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Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4934-4951
Template-Type: ReDIF-Article 1.0
Author-Name: Vassilios Babalos
Author-X-Name-First: Vassilios
Author-X-Name-Last: Babalos
Author-Name: Stavros Stavroyiannis
Author-X-Name-First: Stavros
Author-X-Name-Last: Stavroyiannis
Title: Herding, anti-herding behaviour in metal commodities futures: a novel portfolio-based approach
Abstract:
The purpose of this article is twofold. Motivated by the heated debate on
the financialization of commodities, we examine the existence of herding
behaviour in metal commodities futures. In order to identify any
time-dependent properties reflected in time-varying parameters, we employ
the overlapping rolling window regression technique. The empirical
evidence confirms a time-varying anti-herding behaviour before the global
financial crisis and the absence of herding or anti-herding behaviour
during the crisis. Next we attempt to formally establish the link between
the documented anti-herding behaviour and portfolio management with the
use of dynamic conditional correlations via the DCC-GARCH family
multivariate modelling. After specifying the correlations, an in-sample
recursive dynamic Markowitz portfolio is constructed and monitored. By
doing so, we attribute the anti-herding behaviour to different portfolio
positioning and rebalancing. On the other hand, in the absence of herding
or anti-herding behaviour, we document a shift in the correlations and
covariances of the commodity futures especially during the crisis,
resulting in a decrease of the portfolio weights together with a
substantial cash flow towards the risk-free asset.
Journal: Applied Economics
Pages: 4952-4966
Issue: 46
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1039702
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039702
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Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4952-4966
Template-Type: ReDIF-Article 1.0
Author-Name: Weng
Author-X-Name-First:
Author-X-Name-Last: Weng
Author-Name: Woo
Author-X-Name-First:
Author-X-Name-Last: Woo
Author-Name: Cheng
Author-X-Name-First:
Author-X-Name-Last: Cheng
Author-Name: T. Ho
Author-X-Name-First: T.
Author-X-Name-Last: Ho
Author-Name: I. Horowitz
Author-X-Name-First: I.
Author-X-Name-Last: Horowitz
Title: Public trust and corruption perception: disaster relief
Abstract:
Public trust in government and nongovernment organizations is essential to
the public's willingness to donate and to support those organizations. We
measure public trust in disaster aid using people's perception of these
organizations' effectiveness in delivering aid relief to the victims of
two recent major earthquakes in China. Based on the survey data collected
in 2013 from about 2100 residents in Hong Kong, we document the
vulnerability of these residents' trust perceptions in aid delivery. We
find that the sharp decline in trust perception is highly negatively
correlated with their perception of corruption of local governments in
China.
Journal: Applied Economics
Pages: 4967-4981
Issue: 46
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1039703
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039703
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4967-4981
Template-Type: ReDIF-Article 1.0
Author-Name: Alam
Author-X-Name-First:
Author-X-Name-Last: Alam
Author-Name: Shahina Amin
Author-X-Name-First: Shahina
Author-X-Name-Last: Amin
Author-Name: Rives
Author-X-Name-First:
Author-X-Name-Last: Rives
Title: Occupational choices of working children in Bangladesh
Abstract:
The article looks into the determinants of occupational choices of working
children in Bangladesh. Using data from 6668 Bangladeshi working children
aged 5 through 14, the article estimates several binary and multinomial
logit regressions, separately for boys and girls. The article confirms
that most children work in the informal sector where formal sector's
jurisdiction and regulations are absent. Specifically, the article finds
that children are least likely to work in the service occupation and are
more likely to work in the textile sector. The findings highlight the
diversity in the occupational distribution of child workers by gender and
show how their individual and family characteristics influence
occupational choices. The service sector, which comprises of mostly maids,
is a hidden sector. This sector makes children vulnerable to abuse. Thus,
it is suggested that policy makers need to come up with effective
legislations that would protect the children who work in the 'hidden
informal' sector.
Journal: Applied Economics
Pages: 4982-4995
Issue: 46
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1039704
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039704
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Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4982-4995
Template-Type: ReDIF-Article 1.0
Author-Name: Saban Nazlioglu
Author-X-Name-First: Saban
Author-X-Name-Last: Nazlioglu
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Volatility transmission between Islamic and conventional equity markets: evidence from causality-in-variance test
Abstract:
This study examines whether a volatility/risk transmission exists between
the Dow Jones Islamic stock and three conventional stock markets for the
United States, Europe and Asia during the pre- and the in- and post-2008
crisis periods. It also explores the volatility spillover dynamics between
those markets and US Monetary policy, oil prices, global financial risk
and uncertainty factors. The recently developed Hafner and Herwartz
(2006)'s causality-in-variance test provides evidence of risk transfers
between these seemingly different equity markets, indicating a contagion
between them during the full sample and the subperiods. The volatility
structure of these markets is dominated by short-run volatility in the
first period and by high long-run volatility in the second period. The
volatility impulse response analysis indicates a similar volatility
transmission pattern although it is characterized by a more volatile and
short-lived structure in the second period. It also appears that the
Islamic equity market responds to shocks from the risk factors and not
from the oil price and the US economic policy uncertainty index during
both periods.
Journal: Applied Economics
Pages: 4996-5011
Issue: 46
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1039705
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1039705
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Handle: RePEc:taf:applec:v:47:y:2015:i:46:p:4996-5011
Template-Type: ReDIF-Article 1.0
Author-Name: Sofiane Aboura
Author-X-Name-First: Sofiane
Author-X-Name-Last: Aboura
Author-Name: Julien Chevallier
Author-X-Name-First: Julien
Author-X-Name-Last: Chevallier
Title: Realized EquiCorrelation: a bird's-eye view of financial stress on equity markets
Abstract:
This article addresses the issue of measuring the level of aggregate
financial stress on stock markets, which is a central issue for investors
and policy-makers. To this end, Realized EquiCorrelation (REC) is obtained
by plugging realized volatility as an input into the Dynamic
EquiCorrelation (DECO) model where both the continuous and jump components
of realized volatility are considered. An application is provided for the
20 major stock markets over January 2000-May 2014 using intra-day data.
The results remarkably pick up financial stress periods.
Journal: Applied Economics
Pages: 5013-5033
Issue: 47
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042139
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042139
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Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5013-5033
Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kim
Author-X-Name-First: Minjung
Author-X-Name-Last: Kim
Title: The effect of strategic alliances on firm productivity in South Korea
Abstract:
Using a rich firm-level data set from South Korea, this article analyses
the impact of strategic alliances on firm performance, focusing on how
firm productivity is affected by alliance types such as joint venture,
joint technical development, technical alliance, joint marketing and
coproduction as well as alliance structures such as intra- and
inter-industry alliances. Total factor productivity (TFP) is estimated
through the semi-parametric method suggested by Levinsohn and Petrin
(2003). In addition, a two-stage least-squares (2SLS) method is applied to
reduce the potential endogenous problem between productivity and strategic
alliance choices. The empirical results found in this article indicate
that the engagement in joint ventures positively affects firm productivity
and that the formation of international intra-industry alliances has a
positive impact on firm productivity.
Journal: Applied Economics
Pages: 5034-5044
Issue: 47
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042140
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042140
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Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5034-5044
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Suphat Suphachalasai
Author-X-Name-First: Suphat
Author-X-Name-Last: Suphachalasai
Author-Name: Thanet Makjamroen
Author-X-Name-First: Thanet
Author-X-Name-Last: Makjamroen
Title: Residential demand estimation for bundled fixed-line and wireless mobile broadband services
Abstract:
This article is the first investigation of residential Internet markets in
Thailand, in particular Bangkok. Bangkok is an interesting market to study
as it is Thailand's most populous province, and supports an advanced
economy. The study offers a comprehensive discussion of the process to
obtain cross-price elasticity estimates when Internet services are
bundled. Interestingly, the empirical results reveal positive cross-price
effects, i.e. Internet alternatives are viewed as substitutes by
respondents in this market. This finding is plausible as the services
differ essentially in their model of delivery.
Journal: Applied Economics
Pages: 5045-5056
Issue: 47
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042141
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042141
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Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5045-5056
Template-Type: ReDIF-Article 1.0
Author-Name: Yun Xu
Author-X-Name-First: Yun
Author-X-Name-Last: Xu
Author-Name: Ouyang
Author-X-Name-First:
Author-X-Name-Last: Ouyang
Title: China wage inequality: the role of trade and technology
Abstract:
This article empirically investigates the impact of international trade
and technical change on skill premia for a panel of 28 manufacturing
sectors in China over the period 2002-2011. The results find that the
effect of changes of the share of SOEs is twofold. First, the contraction
of SOEs promoted productivity growth, and the promoting effect was
skill-biased, which tended to increase the skill premia in China. Second,
the drop of product prices resulting from falling SOEs share was more
magnificent in skill-intensive industries, which helped to mitigate wage
inequality through product prices. The accounted-for portion of price
changes by productivity growth was skill-biased, significantly raising
skill premia through product prices. However, the portion of price changes
accounted for by foreign price was unskill-biased, and world price
competition diminished the growing income disparity in China.
Journal: Applied Economics
Pages: 5057-5071
Issue: 47
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042142
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042142
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Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5057-5071
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Cook
Author-X-Name-First: Steve
Author-X-Name-Last: Cook
Author-Name: Tom Winfield
Author-X-Name-First: Tom
Author-X-Name-Last: Winfield
Title: The urban-rural divide, regional disaggregation and the convergence of crime
Abstract:
Potential regional variation in crime rates has been recognized as an
issue of clear importance given its implications for the development and
evaluation of theories of criminal activity, determining the appropriate
level of disaggregation at which to undertake empirical analyses of crime
and whether crime fighting policies should be constructed at a national or
local level. Consequently, a literature has evolved examining the
similarities in US regional crime rates and whether a national trend
exists or is emerging. The present article extends the recent research
into the emergence of a national trend by considering convergence in
alternative classifications of crime using a data set subject to a higher
degree of disaggregation than considered hitherto. The results obtained
overturn previous findings obtained using more highly aggregated data,
indicating the detection of convergence to be dependent upon the level of
disaggregation considered. In addition, the extent of convergence detected
is shown to vary across classifications of criminal activity and reflect
anecdotally noted changes in the evolution of crime at a national level.
The implications of the observed regional variation in crime for the
urban-rural divide and theoretical, empirical and policy analyses are
noted.
Journal: Applied Economics
Pages: 5072-5087
Issue: 47
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042143
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042143
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Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5072-5087
Template-Type: ReDIF-Article 1.0
Author-Name: Cheng
Author-X-Name-First:
Author-X-Name-Last: Cheng
Author-Name: Fung
Author-X-Name-First:
Author-X-Name-Last: Fung
Author-Name: Hu
Author-X-Name-First:
Author-X-Name-Last: Hu
Author-Name: Cheng
Author-X-Name-First:
Author-X-Name-Last: Cheng
Title: Interest rate deregulation and banks' off-balance-sheet activities: a Hong Kong perspective
Abstract:
Through the interest rate deregulation and banks' off-balance-sheet
activities (OBSAs) in Hong Kong, this study investigates the debate over
the impact of banking deregulation on banks' risk-taking behaviour. On the
one hand, the Arrow effect implies that increased competition caused by
the interest rate deregulation motivates Hong Kong banks to speed up their
development of OBSAs as an additional but riskier income source. On the
other hand, the Schumpeterian effect implies that the deregulation may
reduce the banks' financial capability in developing new products and thus
downscale their OBSA adoption. Our findings show that, while the negative
scale effect is statistically insignificant, the interest rate
deregulation has a positive and significant impact on the adoption rate
for all OBSA categories. We therefore conclude that the interest rate
deregulation unambiguously leads to riskier bank behaviour in terms of
higher OBSA adoption.
Journal: Applied Economics
Pages: 5088-5102
Issue: 47
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042144
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042144
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Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5088-5102
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Wanke
Author-X-Name-First: Peter
Author-X-Name-Last: Wanke
Author-Name: Barros
Author-X-Name-First:
Author-X-Name-Last: Barros
Title: Slacks determinants in Brazilian railways: a distance friction minimization approach with fixed factors
Abstract:
This study investigates the drivers for output-increasing/input-saving
potentials in the Brazilian railway industry, which has undergone
significant transformations since its privatization in the mid-1990s. The
main research objective is to determine whether or not different types of
cargoes and geographic regions serviced present a significant impact on
railway slacks by applying a distance friction minimization (DFM) approach
with fixed factors. Based on a balanced panel model, secondary data from
the period 2004 to 2012 were collected and analysed. Results support
anecdotal evidence regarding a heterogeneous impact of types of cargo and
geographic location on input-reducing and output-increasing potentials,
besides network length and average speed. Policy implications for railway
authorities are also addressed by focusing on the specifics of each
railway operator.
Journal: Applied Economics
Pages: 5103-5120
Issue: 47
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042145
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042145
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Handle: RePEc:taf:applec:v:47:y:2015:i:47:p:5103-5120
Template-Type: ReDIF-Article 1.0
Author-Name: Fullerton
Author-X-Name-First:
Author-X-Name-Last: Fullerton
Author-Name: E. Pallarez
Author-X-Name-First: E.
Author-X-Name-Last: Pallarez
Author-Name: Walke
Author-X-Name-First:
Author-X-Name-Last: Walke
Title: Downtown parking meter demand in a border metropolitan economy
Abstract:
Prior research establishes that the price of parking in the city centre
often impacts the decision to travel downtown and the mode of
transportation utilized. Other factors that influence the decision to
drive and park downtown have received less attention. This study uses time
series data to analyse the demand for metered parking spaces in El Paso,
Texas, USA. In addition to meter rates, the determinants of demand include
personal income, gasoline prices and the price of a substitute good,
parking garage spaces. Because international bridges connect downtown El
Paso to neighbouring Ciudad JuᲥz, Chihuahua, Mexico, the impacts of
trans-boundary traffic flows, bridge tolls and other cross-border economic
variables are also included as potential determinants of metered parking
demand. Results indicate that parking meter rates, other
transportation-related costs, and economic conditions in both countries
affect meter use.
Journal: Applied Economics
Pages: 5121-5130
Issue: 48
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042146
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042146
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5121-5130
Template-Type: ReDIF-Article 1.0
Author-Name: Valeria Bernardo
Author-X-Name-First: Valeria
Author-X-Name-Last: Bernardo
Author-Name: Xavier Fageda
Author-X-Name-First: Xavier
Author-X-Name-Last: Fageda
Author-Name: Montserrat Termes
Author-X-Name-First: Montserrat
Author-X-Name-Last: Termes
Title: Do droughts have long-term effects on water consumption? Evidence from the urban area of Barcelona
Abstract:
This article examines the long-term effects of droughts on water
consumption using data of municipalities of the urban area of Barcelona.
Two important characteristics of the sample of municipalities are the
relatively low water consumption in the pre-drought period and the fact
that indoor uses are clearly predominant. Controlling for prices, income
and various socio-demographic factors, we find a reduction in water
consumption not only during the drought episode but also in subsequent
periods. These permanent reductions in water use may be explained by
household behavioural changes, technological changes or structural water
policy changes.
Journal: Applied Economics
Pages: 5131-5146
Issue: 48
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042147
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042147
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5131-5146
Template-Type: ReDIF-Article 1.0
Author-Name: Jimmie Goode
Author-X-Name-First: Jimmie
Author-X-Name-Last: Goode
Author-Name: Kim
Author-X-Name-First:
Author-X-Name-Last: Kim
Author-Name: Fabozzi
Author-X-Name-First:
Author-X-Name-Last: Fabozzi
Title: Full versus quasi MLE for ARMA-GARCH models with infinitely divisible innovations
Abstract:
We compare the backtesting performance of ARMA-GARCH models with the most
common types of infinitely divisible innovations, fit with both full
maximum likelihood estimation (MLE) and quasi maximum likelihood
estimation (QMLE). The innovation types considered are the Gaussian,
Student's t, α-stable, classical
tempered stable (CTS), normal tempered stable (NTS) and generalized
hyperbolic (GH) distributions. In calm periods of decreasing volatility,
MLE and QMLE produce near identical performance in forecasting
value-at-risk (VaR) and conditional value-at-risk (CVaR). In more volatile
periods, QMLE can actually produce superior performance for CTS, NTS and
α-stable innovations. While the
t-ARMA-GARCH model has the fewest number of VaR
violations, rejections by the Kupeic and Berkowitz tests suggest
excessively large forecasted losses. The α-stable,
CTS and NTS innovations compare favourably, with the latter two also
allowing for option pricing under a single market model.
Journal: Applied Economics
Pages: 5147-5158
Issue: 48
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1042203
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1042203
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5147-5158
Template-Type: ReDIF-Article 1.0
Author-Name: Jiaoju Ge
Author-X-Name-First: Jiaoju
Author-X-Name-Last: Ge
Author-Name: Alfonso Flores-Lagunes
Author-X-Name-First: Alfonso
Author-X-Name-Last: Flores-Lagunes
Author-Name: Kilmer
Author-X-Name-First:
Author-X-Name-Last: Kilmer
Title: An analysis of bargaining power for milk cooperatives and milk processors in Florida
Abstract:
The Florida dairy market has a few fluid milk processors and many dairy
farmers. The dairy farmers are represented in negotiation with the
processors by a cooperative. This research builds a theoretical model of
bargaining between the processors and a cooperative. The model is applied
to the Florida dairy market to examine price negotiations between Florida
milk processors and a dairy cooperative. An expectation maximization (EM)
algorithm along with maximum likelihood estimation is used to estimate the
econometric disequilibrium model with time series data for the period of
October 1998 to May 2009. The results show that the class I price set by
the Federal Milk Marketing Order is the major factor influencing the
cooperative's supply reservation price. Negotiated quantity and production
seasonality affect the processors' demand reservation price. The
processors appear to be more patient and have higher average bargaining
power (0.8804) than the cooperative (0.1196). The highest (lowest)
bargaining power for the cooperative (processors) occurred in 2008 and the
lowest (highest) bargaining power for the cooperative (processors)
occurred in 2001.
Journal: Applied Economics
Pages: 5159-5168
Issue: 48
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1044645
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044645
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5159-5168
Template-Type: ReDIF-Article 1.0
Author-Name: Tng
Author-X-Name-First:
Author-X-Name-Last: Tng
Author-Name: Kwek
Author-X-Name-First:
Author-X-Name-Last: Kwek
Title: Financial stress, economic activity and monetary policy in the ASEAN-5 economies
Abstract:
This article uses a structural vector autoregression approach to analyse
the impact of financial stress on the economy and the relationship between
monetary policy and financial stress in the ASEAN-5 economies (Indonesia,
Malaysia, Philippines, Singapore and Thailand). We find that an increase
in financial stress leads to tighter credit conditions and lower economic
activity in all five countries. The estimated impact on the real economy
displays an initial rapid decline followed by a gradual dissipation. In
Malaysia, the Philippines and Thailand, the central banks tend to reduce
policy interest rates (IRs) when financial stress increases, although
there is substantial cross-country variation in the magnitude and time
dynamics. The lower policy IRs are found to have little significant
effects in lowering financial stress, but are still effective in
stimulating economic activity through other channels. These findings imply
that easing monetary policy is likely necessary but insufficient to
address growth slowdowns associated with financial stress. Monetary easing
should instead be complemented with other policy measures which are
targeted at restoring financial stress to normal levels.
Journal: Applied Economics
Pages: 5169-5185
Issue: 48
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1044646
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044646
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Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5169-5185
Template-Type: ReDIF-Article 1.0
Author-Name: Alam
Author-X-Name-First:
Author-X-Name-Last: Alam
Author-Name: Paramati
Author-X-Name-First:
Author-X-Name-Last: Paramati
Title: Do oil consumption and economic growth intensify environmental degradation? Evidence from developing economies
Abstract:
The purpose of this article is to empirically investigate the impact of
economic growth, oil consumption, financial development, industrialization
and trade openness on carbon dioxide (CO2) emissions,
particularly in relation to major oil-consuming developing economies. This
study utilizes annual data from 1980 to 2012 on a panel of 18 developing
countries. Our empirical analysis employs robust panel cointegration tests
and a vector error correction model (VECM) framework. The empirical
results of three panel cointegration models suggest that there is a
significant long-run equilibrium relationship among economic growth, oil
consumption, financial development, industrialization, trade openness and
CO2 emissions. Similarly, results from VECMs show that economic
growth, oil consumption and industrialization have a short-run dynamic
bidirectional feedback relationship with CO2 emissions.
Long-run (error-correction term) bidirectional causalities are found among
CO2 emissions, economic growth, oil consumption, financial
development and trade openness. Our results confirm that economic growth
and oil consumption have a significant impact on the CO2
emissions in developing economies. Hence, the findings of this study have
important policy implications for mitigating CO2 emissions and
offering sustainable economic development.
Journal: Applied Economics
Pages: 5186-5203
Issue: 48
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1044647
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044647
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Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5186-5203
Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Anandamayee Majumdar
Author-X-Name-First: Anandamayee
Author-X-Name-Last: Majumdar
Title: Forecasting US real house price returns over 1831-2013: evidence from copula models
Abstract:
Given the existence of nonnormality and nonlinearity in the data
generating process of real house price returns over the period of
1831-2013, this article compares the ability of various univariate copula
models, relative to standard benchmarks (naive and autoregressive models)
in forecasting real US house price over the annual out-of-sample period of
1874-2013, based on an in-sample of 1831-1873. Overall, our results
provide overwhelming evidence in favour of the copula models (Normal,
Student's t, Clayton, Frank, Gumbel, Joe and
Ali-Mikhail-Huq) relative to linear benchmarks, and especially for the
Student's t-copula, which outperforms all other models
both in terms of in-sample and out-of-sample predictability results. Our
results highlight the importance of accounting for nonnormality and
nonlinearity in the data generating process of real house price returns
for the US economy for nearly two centuries of data.
Journal: Applied Economics
Pages: 5204-5213
Issue: 48
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1044648
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044648
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Handle: RePEc:taf:applec:v:47:y:2015:i:48:p:5204-5213
Template-Type: ReDIF-Article 1.0
Author-Name: Vicente German-Soto
Author-X-Name-First: Vicente
Author-X-Name-Last: German-Soto
Author-Name: Chapa Cantú
Author-X-Name-First:
Author-X-Name-Last: Chapa Cantú
Title: Cointegration with structural changes between per capita product and income inequality in Mexico
Abstract:
The long-run relationship between per capita product and income inequality
in Mexico is assessed for the period 1963-2010. The methodology consists
of stochastic unit root techniques with structural changes. The
integration and cointegration tests suggest that it is not possible to
understand this link if the possibility of structural changes is not taken
into account. Causality, running from per capita product to income
inequality, and a negative and significant overall effect are estimated.
However, after the regime shifts - mainly estimated to occur in the 1980s
- the connection is no longer meaningful. This result seems to be linked
to the slow growth of the Mexican economy after these structural breaks,
affecting, in turn, the reductions in income inequality.
Journal: Applied Economics
Pages: 5215-5228
Issue: 49
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1044649
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044649
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Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5215-5228
Template-Type: ReDIF-Article 1.0
Author-Name: Mourão
Author-X-Name-First:
Author-X-Name-Last: Mourão
Author-Name: Teixeira
Author-X-Name-First:
Author-X-Name-Last: Teixeira
Title: Gini playing soccer
Abstract:
The level of income inequality in a European country influences the
competitive balance of its major soccer leagues. We test this hypothesis
using cointegration techniques for seven male professional soccer leagues
(the Dutch, English, French, German, Italian, Spanish and Ukrainian soccer
leagues) from the 1980/1981 season to the 2011/2012 season. Controlling
for the level of income inequality using variables such as real GDP per
capita, trade openness and the emigration rate, we conclude that income
inequality (measured by the Gini index) causes changes in the measures of
competitive balance that we employ (the Hirschman-Herfindahl index and the
SD) concerning the final number of points scored by the various teams.
Journal: Applied Economics
Pages: 5229-5246
Issue: 49
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1044650
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044650
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Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5229-5246
Template-Type: ReDIF-Article 1.0
Author-Name: Mei Qiu
Author-X-Name-First: Mei
Author-X-Name-Last: Qiu
Author-Name: Pinfold
Author-X-Name-First:
Author-X-Name-Last: Pinfold
Author-Name: Rose
Author-X-Name-First:
Author-X-Name-Last: Rose
Title: A currency preferential approach to international equity investment
Abstract:
We propose a Timex strategy for reducing the foreign
exchange risk associated with international equity investment, pertaining
to countries with currencies correctly or undervalued by the standard of
PPP. The performance of Timex is examined from the
perspectives of eight developed nations with long histories of
free-floating currencies. Based on the data from 1986:Q1 to 2014:Q4, we
find unambiguous evidence for the superior performance of
Timex in the foreign exchange market. Compared with the
passive diversification strategy and the Morgan Stanley Capital
International (MSCI) World index, Timex offers higher
total returns and risk-adjusted total returns when rebalanced every 6 or
12 months for investors based in all eight countries under study. When
rebalanced at a 3-year interval, Timex outperforms the
passive diversification and the MSCI World index for five and all eight
countries, respectively.
Journal: Applied Economics
Pages: 5247-5261
Issue: 49
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1044651
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044651
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Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5247-5261
Template-Type: ReDIF-Article 1.0
Author-Name: Yared Seid
Author-X-Name-First: Yared
Author-X-Name-Last: Seid
Author-Name: Shiferaw Gurmu
Author-X-Name-First: Shiferaw
Author-X-Name-Last: Gurmu
Title: The role of birth order in child labour and schooling
Abstract:
Does when a child was born relative to his or her siblings affect whether
the child attends school or participates in child labour? We investigate
this question by estimating the causal effect of birth order on the
probabilities of school attendance and child labour participation. To
address the potential endogeneity of family size, we use instrumental
variable approach where the proportion of boys in the family is used to
instrument family size. Using a longitudinal household survey data from
Ethiopia, we estimate unobserved effects bivariate probit instrumental
variable model of school attendance and child labour choices. The results
suggest that the probability of child labour participation decreases with
birth order, but we find no evidence that suggests birth order affects the
probability of school attendance. However, among children who are going to
school, hours spent studying increases with birth order. Results from
complementary time-use analysis reveal that there is no birth order effect
on hours spent on household chore. However, hours spent on school
increases with birth order, where the increase in hours spent on school
seems to come from a decrease in hours spent on market work.
Journal: Applied Economics
Pages: 5262-5281
Issue: 49
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1047086
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047086
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Template-Type: ReDIF-Article 1.0
Author-Name: Leonard
Author-X-Name-First:
Author-X-Name-Last: Leonard
Title: Choice of Ontario high schools and student sorting by ability
Abstract:
To what extent can offering more choice in schooling lead to 'cream
skimming,' or the sorting of students by ability? I study whether
increased choice leads to student sorting by ability into high schools in
the Greater Toronto Area. On average, 41% of students 'opt out' of the
high school to which they would normally be assigned based on their
residence. Students are more likely to opt out in areas where
accessibility to other schools is greatest due to population density and
explicit 'open enrolment' policies. While students of higher ability are
generally more likely to opt out, an interaction term between school
choice and ability is insignificant, suggesting that increased choice does
not have differential impacts by student ability. Findings are robust to
changes in assumptions about instrument exogeneity.
Journal: Applied Economics
Pages: 5282-5302
Issue: 49
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1047087
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047087
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Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5282-5302
Template-Type: ReDIF-Article 1.0
Author-Name: Paramati
Author-X-Name-First:
Author-X-Name-Last: Paramati
Author-Name: Rakesh Gupta
Author-X-Name-First: Rakesh
Author-X-Name-Last: Gupta
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: Stock market interdependence between Australia and its trading partners: does trade intensity matter?
Abstract:
We investigate the extent and manner of stock market interdependence
between Australia and its trading partners and examine whether this is
affected by trade intensity. Based on trade intensity, we classify
Australia's trading partners into major, medium and minor partners. We
hypothesize that markets with greater (lower) trade intensity will be more
(less) interdependent with Australia. We perform correlation
(unconditional and conditional) analyses between Australia and its trading
partners. Our results indicate that most of the markets that are highly
correlated with Australia are its major trading partners. We conduct panel
regression analysis to investigate whether trade intensity has any impact
on the stock market correlations between Australia and its trading
partners. The results show that trade intensity significantly and
positively affect the correlations of Australia with its major trading
partners. Thus, the results confirm our hypothesis that trade intensity
drives stock market interdependence between Australia and its trading
partners.
Journal: Applied Economics
Pages: 5303-5319
Issue: 49
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1047088
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047088
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Template-Type: ReDIF-Article 1.0
Author-Name: Agyenim Boateng
Author-X-Name-First: Agyenim
Author-X-Name-Last: Boateng
Author-Name: Wei Huang
Author-X-Name-First: Wei
Author-X-Name-Last: Huang
Author-Name: Kufuor
Author-X-Name-First:
Author-X-Name-Last: Kufuor
Title: Commercial bank ownership and performance in China
Abstract:
This study examines the determinants of bank performance based on proxy
variables that assess the quality of assets, profitability, liquidity and
overall performance. Using a sample of 111 Chinese commercial banks over
the period of 2000-2012, we find that foreign banks appear to have better
asset quality and overall performance although lower profitability
compared to domestic banks. In contrast, the state-owned banks tend to be
more profitable and have better liquidity position compared with other
domestic banks and foreign banks. At bank level, equity/liability ratio
exerts significant influence on overall bank performance, while at the
macroeconomic level, per capital GDP, GDP growth, inflation and
unemployment rates appear to have a bearing on bank performance.
Journal: Applied Economics
Pages: 5320-5336
Issue: 49
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1047089
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047089
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Handle: RePEc:taf:applec:v:47:y:2015:i:49:p:5320-5336
Template-Type: ReDIF-Article 1.0
Author-Name: Qianqian Wang
Author-X-Name-First: Qianqian
Author-X-Name-Last: Wang
Author-Name: Choi
Author-X-Name-First:
Author-X-Name-Last: Choi
Title: Co-movement of the Chinese and U.S. aggregate stock returns
Abstract:
This article studies the co-movement of the levels, as well as of the
volatilities, of the Chinese and U.S. aggregate stock returns in
1995-2014, focusing on the impact of the liberalization of Chinese stock
market from 2005. The volatilities of the two returns appear to have
started to co-move in 2006. To understand the co-movement, we use the
GARCH BEKK method. The result suggests that before 2006, the evolution of
the U.S. returns had a tendency to affect the Chinese returns in level and
volatility. However, after 2006, the two returns affected each other in a
more complex way.
Journal: Applied Economics
Pages: 5337-5353
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1047090
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047090
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Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5337-5353
Template-Type: ReDIF-Article 1.0
Author-Name: Marie-Claude Beaulieu
Author-X-Name-First: Marie-Claude
Author-X-Name-Last: Beaulieu
Author-Name: Habiba Mrissa Bouden
Author-X-Name-First: Habiba
Author-X-Name-Last: Mrissa Bouden
Title: Firm-specific risk and IPO market cycles
Abstract:
This article characterizes the role of risk in the initial public offering
(IPO) cycle. While most of the previous literature uses the volatility of
IPO initial returns to measure risk, we focus on different risk measures,
namely firm-level systematic and idiosyncratic volatilities and the
market-wide implied volatility index (VIX), to assess their role in the
IPO cycle. Our results shed new light on (1) which risk measure is
important in the determination of IPO cycles, (2) the temporal pattern of
each risk component across issuing firms and (3) the relationship between
market-wide uncertainty and IPO risk. Our findings reveal a lead-lag
relationship between IPO waves, VIX and the IPO systematic risk measure.
We also highlight the fact that market-level uncertainty predicts IPO
activity and the level of idiosyncratic risk of the next-period-issuing
firms. Issuing firms' systematic risk can only be predicted by the
systematic risk of firms now proceeding to their offering. The main
implication resulting from our study is that one can better anticipate
'hot-issue' markets, as well as the specific risk components of future new
issues. This will help improve upon the regulatory environment, IPO
investment decisions and IPO timing given market receptivity.
Journal: Applied Economics
Pages: 5354-5377
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1047091
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047091
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Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5354-5377
Template-Type: ReDIF-Article 1.0
Author-Name: P䲠Sjölander
Author-X-Name-First: P䲠
Author-X-Name-Last: Sjölander
Author-Name: Ghazi Shukur
Author-X-Name-First: Ghazi
Author-X-Name-Last: Shukur
Author-Name: Kristofer M害son
Author-X-Name-First: Kristofer
Author-X-Name-Last: M害son
Author-Name: Orsa Kekezi
Author-X-Name-First: Orsa
Author-X-Name-Last: Kekezi
Title: The efficiency of the Scandinavian banking sector - a wavelet quantile regression analysis
Abstract:
In this article, the Scandinavian housing financing market is analysed in
order to determine whether the interest rate price-discovery processes of
Denmark, Norway and Sweden are efficient. Based on wavelet quantile
regression analysis, we find systematic positive asymmetric price
transmission (APT) inefficiencies. We conclude that there is a very high
propensity for mortgage lenders to directly increase its customers'
mortgage interest rates subsequently to an increase in its borrowing
costs. However, after a corresponding borrowing cost decrease, the same
mortgage lenders are very slow to decrease its customers' mortgage rates.
These positive coefficients for so-called APT effects are found in all
Scandinavian countries, even if the coefficients for Norway were not
statistically significant. Wavelet quantile regression analysis, with a
focus on the relevant higher percentiles, is easily motivated since the
mortgage rates are adjusted very infrequently. Moreover, wavelet
decomposition allows a robust analysis at different time frequency scales,
while simultaneously controlling for nonstationary trends, autocorrelation
and structural breaks. Except for the still positive but yet insignificant
and inconclusive coefficients for Norway, the result is very clear-cut.
Regardless of which wavelet scaling decomposition or quantile coefficient
that is studied - positive APT effects are clearly identified and
confirmed on the Scandinavian mortgage market.
Journal: Applied Economics
Pages: 5378-5389
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1047092
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047092
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Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5378-5389
Template-Type: ReDIF-Article 1.0
Author-Name: Beatriz Tovar
Author-X-Name-First: Beatriz
Author-X-Name-Last: Tovar
Author-Name: Ramos-Real
Author-X-Name-First:
Author-X-Name-Last: Ramos-Real
Author-Name: Fagundes de Almeida
Author-X-Name-First:
Author-X-Name-Last: Fagundes de Almeida
Title: Efficiency and performance in gas distribution. Evidence from Brazil
Abstract:
This article analyses the current state of the gas distribution industry
in Brazil, by identifying the main factors that determine its efficiency.
In order to test the performance of the industry, we have calculated the
firms' technical efficiency during the period 2001-2009. We analyse
whether some economic and technological factors as consumer density, load
factor or regulation, among others, have affected the performance of this
industry. We show that companies serving markets with different customer
characteristics (diversification) have reached higher levels of efficiency
and evolved faster. Moreover, the private ownership and price cap
regulation are more efficient in relation to public ownership and cost of
service regulation. These findings are important to support the
improvement of the regulation of gas distribution in the Brazilian states.
Journal: Applied Economics
Pages: 5390-5406
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1047093
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1047093
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Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5390-5406
Template-Type: ReDIF-Article 1.0
Author-Name: Jian Hua
Author-X-Name-First: Jian
Author-X-Name-Last: Hua
Author-Name: Bilel Sanhaji
Author-X-Name-First: Bilel
Author-X-Name-Last: Sanhaji
Title: Volatility spillovers across daytime and overnight information between China and world equity markets
Abstract:
This article explores the transmission of daytime and overnight
information in terms of returns and volatility between Chinese and Asian,
European and North American main stock markets. We propose a bivariate
analysis with China as benchmark. By testing the constancy of the
conditional correlations, we use an extended constant or dynamic
conditional correlation GARCH model. The empirical findings show that
across the daytime information transmissions, the relationships between
China and Asian markets are closer than China and non-Asian markets,
whereas through the overnight information transmissions these
relationships are inverse. The analysis provides, before the crisis, that
the overnight volatility spillover effects are from China to the United
States and the United Kingdom. During the crisis, China affects the United
Kingdom in terms of daytime volatility spillovers, whereas in terms of
overnight volatility spillovers China affects the United States and is
influenced by Japan. After the crisis, daytime volatility spillovers are
from Taiwan to China, whereas the overnight volatility spillover effects
are from China to the United States and the United Kingdom.
Journal: Applied Economics
Pages: 5407-5431
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1049335
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1049335
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Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5407-5431
Template-Type: ReDIF-Article 1.0
Author-Name: Cardon
Author-X-Name-First:
Author-X-Name-Last: Cardon
Author-Name: Showalter
Author-X-Name-First:
Author-X-Name-Last: Showalter
Title: The effects of direct-to-consumer advertising of pharmaceuticals on adherence
Abstract:
We evaluate the effect of direct-to-consumer (DTC) advertising on
adherence to the standard drug regimen for treating high cholesterol
(statins). We use a rich panel data set from an insurance firm that
includes all prescription drug purchases and insurance claims from 1997 to
2002.The data include the relevant demographic variables, including
income. We match this data with unique data from Nielsen Monitor Plus on
monthly DTC advertising expenditures by therapeutic category for all media
types.The research strategy identifies individuals who have been diagnosed
with specific chronic conditions and tracks whether
adherence, as measured by purchases of specific
prescription drugs within designated therapeutic classes, can be explained
in part by the level and type of DTC advertising to which the individual
was potentially exposed. Income has a positive effect on adherence. We
find that advertising has a small negative effect on the average level of
adherence. We find some suggestive evidence that this is because
advertising induces less compliant individuals to start treatment. This
result is consistent with research in marketing which finds higher
sensitivity to advertising among consumers with less persistent purchasing
patterns.
Journal: Applied Economics
Pages: 5432-5444
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1049336
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1049336
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Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5432-5444
Template-Type: ReDIF-Article 1.0
Author-Name: Mukesh K. Chaudhry
Author-X-Name-First: Mukesh K.
Author-X-Name-Last: Chaudhry
Author-Name: Robert J. Boldin
Author-X-Name-First: Robert J.
Author-X-Name-Last: Boldin
Author-Name: Ibrahim Affaneh
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Affaneh
Author-Name: Geoffrey Tickell
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Tickell
Title: Dividend policy and earnings: a study of short- and long-term causality
Abstract:
This research examines whether earnings
per share (EPS) and dividends per share (DPS) exhibit a short and long
causality. The data employed in this study consist of quarterly EPS and
DPS for 28 of the DJIA companies obtained from Bloomberg over a recent
10-year period. The companies under investigation all have EPS and DPS
data available over the period studied. Dividends are generally paid out
of earnings. The amount and timing of the dividend paid is a function of
the respective company's dividend policy. Therefore, the EPS
t
can be expressed in terms of the DPS
t
as follows: EPS
t
= αDPS
t
where α is a nonnegative constant. The
equation suggests that there is a linear relationship between the
EPS t
and the DPS
t
. The results of this study indicate that bi-directional
causality exists for some of the companies.
Journal: Applied Economics
Pages: 5445-5459
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1049337
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1049337
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Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:5445-5459
Template-Type: ReDIF-Article 1.0
Author-Name: Rachid Belhachemi
Author-X-Name-First: Rachid
Author-X-Name-Last: Belhachemi
Author-Name: Pierre Rostan
Author-X-Name-First: Pierre
Author-X-Name-Last: Rostan
Author-Name: Fran 篩s-Éric Racicot
Author-X-Name-First: Fran 篩s-Éric
Author-X-Name-Last: Racicot
Title: Modelling conditional moments and correlation with the continuous hidden-threshold-skew-normal distribution
Abstract:
A key issue in modelling conditional densities of returns of financial
assets is the time-variation of conditional volatility. The classic
econometric approach models volatility of returns with the generalized
autoregressive conditional heteroscedasticity (GARCH) models where the
conditional mean and the conditional volatility depend only on historical
prices. We propose a new family of distributions in which the conditional
distribution depends on a latent continuous factor with a continuum of
states. The distribution has an interpretation in terms of a mixture
distribution with time-varying mixing probabilities. The distribution
parameters have economic interpretations in terms of conditional
volatilities and correlations of the returns with the hidden continuous
state. We show empirically that this distribution outperforms its main
competitor, the mixed normal conditional distribution, in terms of
capturing the stylized facts known for stock returns, namely, volatility
clustering, leverage effect, skewness, kurtosis and regime dependence.
Journal: Applied Economics
Pages: 5461-5475
Issue: 51
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1049338
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1049338
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Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5461-5475
Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Ping Wang
Author-X-Name-First: Ching-Ping
Author-X-Name-Last: Wang
Author-Name: Hung-Hsi Huang
Author-X-Name-First: Hung-Hsi
Author-X-Name-Last: Huang
Author-Name: Cheng-Yu Chen
Author-X-Name-First: Cheng-Yu
Author-X-Name-Last: Chen
Title: Does past performance affect mutual fund tracking error in Taiwan?
Abstract:
This study examines the relationship between fund past performance and
manager choice of portfolio risk in Taiwan. Employing the exponential
generalized autoregressive conditional heteroscedasticity and linear
regression models, the results demonstrate that historically poor average
performance does not increase mutual fund tracking error (TE) or portfolio
risk. Additionally, yearly tournament behaviour, namely mid-year losers
increasing their last-half year TEs, only appears in funds with higher
management fees. This implies that managers of high management fee funds
actively increase TE in response to poor historical performance, to enable
them to beat the market during future months or the second half of the
year.
Journal: Applied Economics
Pages: 5476-5490
Issue: 51
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1051653
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051653
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Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5476-5490
Template-Type: ReDIF-Article 1.0
Author-Name: Getu Hailu
Author-X-Name-First: Getu
Author-X-Name-Last: Hailu
Author-Name: Alex Maynard
Author-X-Name-First: Alex
Author-X-Name-Last: Maynard
Author-Name: Alfons Weersink
Author-X-Name-First: Alfons
Author-X-Name-Last: Weersink
Title: Empirical analysis of corn and soybean basis in Canada
Abstract:
The article examines the factors affecting the basis for corn and soybeans
using several time-series techniques to account for potential structural
breaks, seasonality, residual serial correlation and structural breaks, as
well as potential endogeneity and nonstationarity. The spatio-temporal
empirical framework is based on storage and trade theories which assume
the relationship between nondelivery location's spot price and futures
price of a storable commodity depends on opportunity cost of capital,
warehousing costs, a convenience yield and shipping costs. The interest
rate effect is strong for both crops with shipping costs also affecting
soybean basis and own inventory levels positively correlated with corn
basis. The effect of the wedge between the price of carrying physical
grain and the maximum storage rate on basis is positive for both crops.
The empirical results, which are robust to multiple estimators, provide
stronger evidence of a structural break for the soybean basis than for the
corn basis.
Journal: Applied Economics
Pages: 5491-5509
Issue: 51
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1051654
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051654
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Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5491-5509
Template-Type: ReDIF-Article 1.0
Author-Name: Issouf Soumar頍
Author-X-Name-First: Issouf
Author-X-Name-Last: Soumar頍
Title: Does FDI improve economic development in North African countries?
Abstract:
This article examines the relationship between FDI inflows and welfare
improvement in North African countries. Using net per capita FDI inflows
and the United Nations Development Program's Human Development Index as
the principal variables, our analyses confirm the positive and strongly
significant relationship between net FDI inflows and welfare improvement
in North Africa, although we do find significant differences among the
countries in the region. This relationship holds even after we control for
government size, country indebtedness, macroeconomic instability,
infrastructural development, institutional quality, political risk,
openness to trade, education and financial market development. Hence, at
the aggregate level, FDI contributes to economic growth in North Africa,
in turn generating additional revenues for governments and populations in
the region through fiscal policies and jobs creation. We also found that
FDI received by countries in the region are mainly concentrated in very
few industries (particularly extractive petroleum, services and tourism,
construction and utilities); relatively fewer of these investments are
directed towards the nonextractive primary industries, which are pro-poor
sectors and highly labour intensive, or the manufacturing sector, with a
high potential for spillover effects in the economy. This lack of
diversification of FDI received in the region's economies in part explains
the differences observed in the link between FDI and welfare in these
countries. It is therefore essential for governments in the region to
continue investing in social infrastructures while improving the quality
of their institutions and their governance; doing so will probably help
avoid the type of unrest we have witnessed recently.
Journal: Applied Economics
Pages: 5510-5533
Issue: 51
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1051655
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051655
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Template-Type: ReDIF-Article 1.0
Author-Name: Belayet Hossain
Author-X-Name-First: Belayet
Author-X-Name-Last: Hossain
Title: Women empowerment and infant mortality in Bangladesh
Abstract:
This study attempts to investigate the effects of women empowerment on
infant mortality in Bangladesh. Four indicators have been considered to
measure four dimensions of women empowerment: the level of education,
participation in household (HH) decisions, autonomy in movements and
employment status. The rotated factor analysis technique is used to
construct the last three dimensions. The Weibull parametric survival model
has been specified and estimated using the Bangladesh Demographic and
Health Survey (BDHS) data of 2011. The results show that three measures of
empowerment (the level of education, participation in HH decisions and
autonomy in movements) contribute significantly to the reduction of infant
mortality. But women employment is associated with increased mortality for
infants. The findings of this study have a number of policy implications
on this issue for a developing country like Bangladesh.
Journal: Applied Economics
Pages: 5534-5547
Issue: 51
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1051657
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1051657
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Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5534-5547
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Kempa
Author-X-Name-First: Bernd
Author-X-Name-Last: Kempa
Author-Name: Khan
Author-X-Name-First:
Author-X-Name-Last: Khan
Title: On the size of government spending multipliers in Europe
Abstract:
This article compares the size of government spending multipliers in
Europe by applying a panel structural vector autoregression analysis on 11
eurozone and 8 non-eurozone countries using quarterly data from 1991Q1 to
2012Q4. We find that (i) spending multipliers are smaller in eurozone
compared to non-eurozone countries, (ii) across the euro area the impact
of government spending on GDP has been higher before than after the
introduction of the euro, (iii) spending multipliers are larger in the
eurozone periphery than in the core countries and (iv) since the beginning
of the recent financial crisis, spending multipliers have become larger
both for eurozone and for non-eurozone countries. We relate these results
to an emerging theoretical literature linking the size of fiscal
multipliers to the monetary policy stance. We also discuss the
implications of our findings for the effectiveness of fiscal policy in
Europe.
Journal: Applied Economics
Pages: 5548-5558
Issue: 51
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054067
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054067
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Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5548-5558
Template-Type: ReDIF-Article 1.0
Author-Name: Emanuel Bagna
Author-X-Name-First: Emanuel
Author-X-Name-Last: Bagna
Author-Name: Giuseppe Di Martino
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Di Martino
Author-Name: Davide Rossi
Author-X-Name-First: Davide
Author-X-Name-Last: Rossi
Title: No more discount under enhanced fair value hierarchy
Abstract:
We use an integrated approach to analyse the reasons behind the discount
on the balance-sheet fair value of illiquid financial instruments held by
European banks and classified into the Level 3 Fair Value hierarchy under
IFRS 7. We believe that the potential sources of misalignment are (1) the
lack of disclosure, (2) earnings management, and (3) the lack of
liquidity. We show that the discount implicit in market values is linked
to the lack of mandatory additional disclosure required by IFRS 7 and that
this result supports the strong enforcement activity made by national
authorities.
Journal: Applied Economics
Pages: 5559-5582
Issue: 51
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054068
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054068
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Handle: RePEc:taf:applec:v:47:y:2015:i:51:p:5559-5582
Template-Type: ReDIF-Article 1.0
Author-Name: Era Dabla-Norris
Author-X-Name-First: Era
Author-X-Name-Last: Dabla-Norris
Author-Name: Raphael Espinoza
Author-X-Name-First: Raphael
Author-X-Name-Last: Espinoza
Author-Name: Sarwat Jahan
Author-X-Name-First: Sarwat
Author-X-Name-Last: Jahan
Title: Spillovers to low-income countries: importance of systemic emerging markets
Abstract:
This article documents the expanding economic linkages between low-income
countries (LICs) and a narrow group of 'Emerging Market (EM) leaders' that
have become major players in international trade and financial flows. VAR
models show that these linkages have increased the share of growth
volatility that can be attributed to foreign shocks in LICs. Dynamic panel
models further analyse the impact of LIC trade orientation and production
structure on the sensitivity to foreign shocks. The empirical results
demonstrate that the elasticity of growth to trading partners' growth is
high for LICs in three out of the five regions: Asia, Latin America and
the Caribbean, and Europe and Central Asia. However, for
commodity-exporting LICs in Sub-Saharan Africa and the Middle East, terms
of trade shocks and demand from the EM leaders are the main channels of
transmission of foreign shocks
Journal: Applied Economics
Pages: 5707-5725
Issue: 53
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058903
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058903
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Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5707-5725
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Fossati
Author-X-Name-First: Sebastian
Author-X-Name-Last: Fossati
Title: Forecasting US recessions with macro factors
Abstract:
Dynamic factors estimated from panels of macroeconomic indicators are used
to predict future recessions using probit models. Three factors are
considered: a bond and exchange rates factor, a stock market factor and a
real activity factor. Three results emerge. First, models that use only
financial indicators exhibit a large deterioration in fit after 2005.
Second, models that use factors yield better fit than models that use
indicators directly. Out-of-sample forecasting exercises confirm these
results for 3-, 6- and 12-month horizons using both ex-post revised data
and real-time data. Third, results show evidence that data revisions
affect factors less than individual indicators.
Journal: Applied Economics
Pages: 5726-5738
Issue: 53
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058904
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058904
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Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5726-5738
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Esmaeil Ebadi
Author-X-Name-First: Esmaeil
Author-X-Name-Last: Ebadi
Title: Impulse response analysis and Orcutt's hypothesis in trade: evidence from developing countries
Abstract:
Orcutt's hypothesis in international economics implies that trade flows
respond to exchange rate changes faster than to changes in relative
prices. Most previous studies used import and export demand models and
tested the hypothesis by imposing and comparing lag lengths on the
exchange rate and relative prices. One recent study, however, employed
impulse response of trade flows to one SD shock to the nominal exchange
rate and one SD shock to relative prices and tested the Orcutt's
hypothesis for several industrial countries. In this article we follow
this study and test the hypothesis for six developing countries using
impulse response analysis. Like the other study for industrial countries,
we do not find much support for the hypothesis.
Journal: Applied Economics
Pages: 5739-5747
Issue: 53
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058905
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058905
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Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5739-5747
Template-Type: ReDIF-Article 1.0
Author-Name: Riphahn
Author-X-Name-First:
Author-X-Name-Last: Riphahn
Author-Name: Caroline Schwientek
Author-X-Name-First: Caroline
Author-X-Name-Last: Schwientek
Title: What drives the reversal of the gender education gap? Evidence from Germany
Abstract:
We study the mechanisms that are associated with the gender education gap
and its reversal in Germany. We focus on three outcomes, graduation from
upper secondary school, any tertiary education and tertiary degree.
Neither individual and family background nor labour market characteristics
appear to be strongly associated with the gender education gap. There is
some evidence that the gender gap in upper secondary education reflects
the rising share of single parent households which impacts boys'
attainment more than girls'. The gender education gap in tertiary
education is correlated with the development of class sizes and social
norms.
Journal: Applied Economics
Pages: 5748-5775
Issue: 53
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058906
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058906
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Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5748-5775
Template-Type: ReDIF-Article 1.0
Author-Name: R駩s Chenavaz
Author-X-Name-First: R駩s
Author-X-Name-Last: Chenavaz
Author-Name: Octavio Escobar
Author-X-Name-First: Octavio
Author-X-Name-Last: Escobar
Title: Population distribution, effective area and economic growth
Abstract:
The usual measure for the factor land is the total area.
But total area is a flawed measure because land is of unequal quality. To
account for land quality, we use an alternative measure called
effective area. Effective area is based on spatial
population distribution which captures both natural conditions and human
activity. Theoretically, effective area explains economic growth better
than total area that biases the measure of total factor productivity (TFP)
growth. Empirically on the basis of 40 years of panel data for the
United States, an increase of 10% in effective area is associated with an
economic growth of 5%, and the omission of effective area undervalues the
growth of TFP by 8.1%.
Journal: Applied Economics
Pages: 5776-5790
Issue: 53
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058907
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058907
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Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5776-5790
Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Hsiu Lin
Author-X-Name-First: Yu-Hsiu
Author-X-Name-Last: Lin
Author-Name: Len-Kuo Hu
Author-X-Name-First: Len-Kuo
Author-X-Name-Last: Hu
Title: The cyclicality of bank regulation in a general economic framework
Abstract:
This article utilizes a representative agent model to address how the
regulation policies for banks should respond to the general economic
condition. With the consideration of a self-fulfilling deposit insurance
facility with sufficient bank reserve to meet the expected need of
liquidity shock, our model suggests a counter-cyclical
capital adequacy requirement in a competitive loan market. The exception
might occur when the moral hazard problem becomes very unwieldy and the
representative individual is rather risk averse. With regard to the
closure policy, we find that it is closely related to the individual's
degree of risk aversion. A counter-cyclical closure
policy is recommended when the individual is highly risk averse.
Otherwise, a pro-cyclical closure policy is preferred.
Journal: Applied Economics
Pages: 5791-5804
Issue: 53
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058908
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058908
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Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5791-5804
Template-Type: ReDIF-Article 1.0
Author-Name: Yasushi Nakamura
Author-X-Name-First: Yasushi
Author-X-Name-Last: Nakamura
Title: Productivity versus elasticity: a normalized constant elasticity of substitution production function applied to historical Soviet data
Abstract:
This study tests the extensive growth hypothesis, which would attribute
the Soviet economic slowdown to low elasticity of substitution and
over-investment rather than deteriorating productivity growth. To
circumvent the low availability of data, widely applicable new methods for
estimating productivity and elasticity of substitution were developed
based on the normalized constant elasticity of substitution (CES)
production function. One is an extended version of the Solow residual
calculation, and the other is a direct estimation of the time-varying
parameter normalized CES production function. The application of the
methods to the Soviet data showed a decreasing trend in productivity
growth and a low elasticity of substitution of approximately 0.25. The
results neither reject nor support the extensive growth hypothesis because
of uncertainty in the interpretation of the low elasticity of
substitution. The results suggest that it is reasonable to assert that
both deteriorating productivity growth and low elasticity of substitution
caused the Soviet economic slowdown. Further empirical studies on
productivity and elasticity of substitution in the Soviet and other
economies are necessary to fully understand relations between productivity
growth, elasticity of substitution and economic development.
Journal: Applied Economics
Pages: 5805-5823
Issue: 53
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058909
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058909
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Handle: RePEc:taf:applec:v:47:y:2015:i:53:p:5805-5823
Template-Type: ReDIF-Article 1.0
Author-Name: Hassan
Author-X-Name-First:
Author-X-Name-Last: Hassan
Author-Name: Eliza Wu
Author-X-Name-First: Eliza
Author-X-Name-Last: Wu
Title: Sovereign credit ratings, growth volatility and the global financial crisis
Abstract:
Using monthly data from January 1996 to May 2010 for a panel of 76
developed and emerging economies and adopting an instrumental variable
(IV) estimation technique by correcting for both heterogeneity and
endogeneity with the generalized two-stage least squares (G2SLS, EC2SLS)
procedure method suggested by Balestra and Varadharajan-Krishnakumar
(1987) and Baltagi and Li (1995), this article provides empirical evidence
that volatility of per capita GDP growth is reduced when there are
positive changes in credit ratings; in other words when sovereign credit
risk improves. To deal with potential simultaneity between sovereign
credit ratings and output volatility, a system (3SLS) approach is
undertaken, and our findings remain robust. By weakening the volatility
dampening effects of ratings changes, it is found that the global
financial crisis (GFC) has enhanced macroeconomic
volatility. One of the channels via which sovereign rating changes affect
growth volatility is the financial markets' repricing of sovereign default
risk that is reflected in sovereign credit default swap (CDS) spreads and
its volatility.
Journal: Applied Economics
Pages: 5825-5840
Issue: 54
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058910
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058910
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Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5825-5840
Template-Type: ReDIF-Article 1.0
Author-Name: Y. Tsuchiya
Author-X-Name-First: Y.
Author-X-Name-Last: Tsuchiya
Author-Name: T. Kato
Author-X-Name-First: T.
Author-X-Name-Last: Kato
Title: Asymmetric loss and herding behaviour of exchange rate forecasters: evidence from South Africa
Abstract:
This study examines the asymmetry of the loss function for private
forecasters in exchange rate forecasts of the South African rand. It tests
rationality under the possibility of an asymmetric loss function. The
results indicate less evidence of asymmetry for a horizon of 1 month
but considerable evidence of asymmetry for a horizon of 3 months.
However, the shapes of the distributions formed by estimated asymmetry
parameters of sub-samples for each forecaster are symmetric, regardless of
the forecast horizons, which implies that these forecasters do not herd or
antiherd. In fact, the results of our empirical herding test show that
forecasters neither herd nor antiherd, which is in sharp contrast to
recent findings on antiherding for foreign exchange rates in emerging
market economies. Our findings provide consistent evidence for a recent
suggestion that antiherding might result in the rejection of rationality,
even under asymmetric loss functions. Our findings also suggest that
central bank transparency might be associated with herding behaviours.
Journal: Applied Economics
Pages: 5841-5852
Issue: 54
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058911
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058911
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Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5841-5852
Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Jackson
Author-X-Name-First: Jeremy
Author-X-Name-Last: Jackson
Author-Name: Art Carden
Author-X-Name-First: Art
Author-X-Name-Last: Carden
Author-Name: Compton
Author-X-Name-First:
Author-X-Name-Last: Compton
Title: Economic freedom and social capital
Abstract:
This article brings together two growing literatures, social capital and
economic freedom, to examine whether economic freedom contributes to
social capital. More specifically, using US state-level data from 1986 to
2004 and both OLS and System GMM dynamic panel estimation, we find that
there is no clear trade-off between economic freedom and either the level
or growth of social capital.
Journal: Applied Economics
Pages: 5853-5867
Issue: 54
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058912
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058912
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Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5853-5867
Template-Type: ReDIF-Article 1.0
Author-Name: Chulwoo Han
Author-X-Name-First: Chulwoo
Author-X-Name-Last: Han
Author-Name: Soosung Hwang
Author-X-Name-First: Soosung
Author-X-Name-Last: Hwang
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Market overreaction and investment strategies
Abstract:
We investigated the overreaction of the Korean market in response to
shocks in the US stock market, and analysed the dynamic relationship
between these two markets since 1996. We found that the KOSPI 200 index
futures overreacted to the S&P 500 index returns during the period from
2000 to 2009 when the Korean market was in its growth stage. As the Korean
market matured and the KOSPI 200 overnight futures were introduced in
2009, the overreaction disappeared. When investors employed the Kelly
model or Value-at-Risk to exploit the overreaction, their trading
strategies produced significant profits during the growth stage even after
considering transaction costs and risk, but the profits attenuated once
the overnight futures market was launched in 2009.
Journal: Applied Economics
Pages: 5868-5885
Issue: 54
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058913
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058913
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Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5868-5885
Template-Type: ReDIF-Article 1.0
Author-Name: Yanyan Zheng
Author-X-Name-First: Yanyan
Author-X-Name-Last: Zheng
Author-Name: Tong Shu
Author-X-Name-First: Tong
Author-X-Name-Last: Shu
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Author-Name: Lai
Author-X-Name-First:
Author-X-Name-Last: Lai
Author-Name: Lu Gan
Author-X-Name-First: Lu
Author-X-Name-Last: Gan
Title: Demand disruption and coordination of supply chain via effort and revenue sharing
Abstract:
This article explores the equilibrium behaviour of a basic
supplier-retailer distribution channel under demand disruption via effort
and revenue sharing contract. This differs from the traditional supply
chain coordination model. Firstly, demand is simultaneously affected by
retail price and nonprice marketing effort from manufacturers and
retailers. Secondly, when the demand is disrupted, this article considers
disruptions in the market scale and price sensitivity coefficient.
Thirdly, the supply chain coordination model is proposed via effort and
revenue sharing contract. In this way, the manufacturer reduces the
wholesale price as an incentive for the retailer to share revenue.
Finally, the total supply chain profit is greater with contract than no
contract. This also constitutes another incentive for the players to
follow the effort and revenue sharing contract.
Journal: Applied Economics
Pages: 5886-5901
Issue: 54
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058914
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058914
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Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5886-5901
Template-Type: ReDIF-Article 1.0
Author-Name: Franses
Author-X-Name-First:
Author-X-Name-Last: Franses
Author-Name: Madesta Lede
Author-X-Name-First: Madesta
Author-X-Name-Last: Lede
Title: Cultural norms and values and purchases of counterfeits
Abstract:
We conjecture that an important driver of individual purchases of
counterfeit products is cultural norms and values. To put this conjecture
to an empirical test, we make use of the unique situation of Surinamese
people who live in Suriname and in the Netherlands and who might share the
same norms and values but certainly not their respective income levels and
demographics. Holding newly collected data from surveys amongst Surinamese
individuals in the Netherlands and in Suriname against a control group of
Dutch individuals in the Netherlands, we present evidence that cultural
norms are indeed a key driver for purchases of counterfeit products.
Implications for policy are discussed.
Journal: Applied Economics
Pages: 5902-5916
Issue: 54
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1058915
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1058915
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5902-5916
Template-Type: ReDIF-Article 1.0
Author-Name: Stuart McChlery
Author-X-Name-First: Stuart
Author-X-Name-Last: McChlery
Author-Name: Reza Kouhy
Author-X-Name-First: Reza
Author-X-Name-Last: Kouhy
Author-Name: Catriona Paisey
Author-X-Name-First: Catriona
Author-X-Name-Last: Paisey
Author-Name: Khaled Hussainey
Author-X-Name-First: Khaled
Author-X-Name-Last: Hussainey
Title: An empirical study of the determinants of UK oil and gas voluntary disclosures
Abstract:
Significant oil and gas firm market value is derived from their physical
reserve quantum, assets which are not recorded on their statements of
financial position. This article provides empirical evidence regarding
voluntary disclosure of such reserves in line with the previously
unresearched UK sector with regard to its unique reporting guidelines. The
study considers both the reporting of the reserve quantum and the quality
of that reporting. This article seeks to inform the International
Accounting Standards Board's (IASB's) on-going consideration of mineral
resource reporting. Listed companies are considered to evidence forms of
reserve disclosure with a logistical regression approach applied to
measure determinants of reporting. The risk associated with mineral
reporting reserves is hypothesized as the key disclosure driver whilst
controlling other relevant variables. The majority of firms disclosed
reserve quantities in some form but only a minority disclosed in line with
recommended practice, disclosure quality being more variable between
companies. The findings indicate that a voluntary disclosure approach is
ineffective, partially explained by agency related behaviour. Risk,
proxied by the stage of production, drives reserve disclosure showing that
producer firms are more likely to disclose reserve quantum balances and of
a significantly higher quality.
Journal: Applied Economics
Pages: 5917-5931
Issue: 54
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1061641
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061641
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Handle: RePEc:taf:applec:v:47:y:2015:i:54:p:5917-5931
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Schiersch
Author-X-Name-First: Alexander
Author-X-Name-Last: Schiersch
Author-Name: Heike Belitz
Author-X-Name-First: Heike
Author-X-Name-Last: Belitz
Author-Name: Martin Gornig
Author-X-Name-First: Martin
Author-X-Name-Last: Gornig
Title: Why is TFP growth sectorally concentrated?
Abstract:
Research shows that total factor productivity (TFP) growth is weak in
European countries. This is inter alia attributed to the
fact that substantial TFP growth is limited to a few industries. Because
TFP growth is typically understood as technological progress, it is
concluded that technology diffusion between sectors in Europe is hampered.
We use EU KLEMS data sets to decompose sectoral TFP for nine European
countries by means of a Malmquist approach in order to identify potential
sources besides technical progress. Applying Harberger diagrams, we
describe the sectoral distribution of TFP growth, efficiency gains and
losses, economies of scale and technological progress. The analysis
reveals that technological progress is quite evenly distributed across
sectors in most European countries. The wide scattering of TFP growth is
explained by deviating efficiency developments and the unused economies of
scale. We conclude that the technology transfer between sectors in most
European countries seems to work. Therefore, Europe in general does not
need a new technology policy, but a further integration of the markets and
a reduction of national market entry barriers. This requires further
unification of pan-European standards in fields like trade and crafts
codes or consumer protection policies.
Journal: Applied Economics
Pages: 5933-5944
Issue: 55
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1061642
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061642
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Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:5933-5944
Template-Type: ReDIF-Article 1.0
Author-Name: D Palcic
Author-X-Name-First: D
Author-X-Name-Last: Palcic
Author-Name: Eoin Reeves
Author-X-Name-First: Eoin
Author-X-Name-Last: Reeves
Title: Privatization and the economic performance of Irish Sugar/Greencore
Abstract:
As one of Ireland's largest agribusiness companies, the Irish Sugar
company played a key role in the country's economic development in the
twentieth century. The company was privatized in 1991 (under the new name
Greencore) and has since transformed from a largely commodity-based
agribusiness into an international convenience food company. This article
analyses the financial and economic performance of the company in the 10
years before and after privatization. It finds that the change from public
to private ownership was not strongly associated with improved financial
performance and productivity as the company had experienced rapid growth
and improvement in the pre-privatization period. These findings run
counter to perspectives such as public choice theory that suggest a
positive relationship between privatization and company performance.
Performance in the post-privatization period was strongly influenced by
greater exposure to market forces in the company's expanding food
division; however, it is surprising that this greater competition did not
translate into improved overall performance.
Journal: Applied Economics
Pages: 5945-5961
Issue: 55
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1061643
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061643
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Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:5945-5961
Template-Type: ReDIF-Article 1.0
Author-Name: Magda Kandil
Author-X-Name-First: Magda
Author-X-Name-Last: Kandil
Author-Name: Boaz Nandwa
Author-X-Name-First: Boaz
Author-X-Name-Last: Nandwa
Title: Oil dependency and exchange rate regimes in Arab oil economies: time to rethink the paradigm
Abstract:
This study examines implications of the current exchange rate regimes on
the macroeconomic and growth performance of five Arab oil-producing
countries: Saudi Arabia, the UAE, Sudan, Algeria and Yemen. The study
evaluates alternative exchange rate regime policy options towards
exploring an optimal exit strategy to ensure successful transition to more
sustainable exchange rate regime, especially in the fixed regime economies
of Saudi Arabia and the UAE. This study proposes the adoption of a
transparent broad basket, band and crawl (BBC) regime by the Arab oil
economies in order to provide a better alternative to the existing fixed
pegs or dirty floats. However, it is imperative to note that, the timing
of the exit from the current regime and the extent of institutional
development and market sophistications are very critical to successful
transition to more sustainable regime that would provide a larger scope
for counter-cyclical policies and diversification in these economies.
Journal: Applied Economics
Pages: 5962-5995
Issue: 55
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1061644
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061644
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:5962-5995
Template-Type: ReDIF-Article 1.0
Author-Name: Fran 篩s-Charles Wolff
Author-X-Name-First: Fran 篩s-Charles
Author-X-Name-Last: Wolff
Title: Does price dispersion increase with quality? Evidence from the online diamond market
Abstract:
This article empirically investigates the relationship between price
dispersion and price level. Searches seem more valuable for products of
high quality, but buyers may have little incentive to search since such
products are less frequently purchased. The extent of price dispersion is
examined using a sample of around 160 000 diamonds offered for sale
online. Estimates from a two-stage econometric strategy show that price
dispersion increases significantly with quality. An explanation is that
buyers of high-quality gemstones pay little attention to the price of
these diamonds and even more so if they perceive high prices as signals of
quality and rarity of the diamonds they intend to purchase.
Journal: Applied Economics
Pages: 5996-6009
Issue: 55
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1061645
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061645
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:5996-6009
Template-Type: ReDIF-Article 1.0
Author-Name: Ramaprasad Bhar
Author-X-Name-First: Ramaprasad
Author-X-Name-Last: Bhar
Author-Name: Malliaris
Author-X-Name-First:
Author-X-Name-Last: Malliaris
Author-Name: Mary Malliaris
Author-X-Name-First: Mary
Author-X-Name-Last: Malliaris
Title: The impact of large-scale asset purchases on the S&P 500 index, long-term interest rates and unemployment
Abstract:
After the bankruptcy of Lehman Brothers in September 2008 and the
financial panic that ensued, the Federal Reserve moved rapidly to reduce
the federal funds rate to .25%. It was quickly judged that additional
measures were needed to stabilize the US economy. Beginning in December
2008, the Federal Reserve Bank initiated three rounds of unconventional
monetary policies known as quantitative easing (QE). These policies were
intended to reduce long-term interest rates when the short-term federal
funds rates had reached the zero lower bound and could not become
negative. It was argued that the lowering of longer-term interest rates
would help the stock market and thus the wealth of consumers. This article
carefully investigates three hypotheses: QE impacting long-term interest
rates, QE impacting the stock market and QE impacting unemployment using a
Markov regime switching methodology. We conclude that QE has contributed
significantly to increases in the stock market but less significantly to
long-term interest rate and unemployment.
Journal: Applied Economics
Pages: 6010-6018
Issue: 55
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1061646
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061646
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Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:6010-6018
Template-Type: ReDIF-Article 1.0
Author-Name: J. Driessen
Author-X-Name-First: J.
Author-X-Name-Last: Driessen
Author-Name: A. Razzaque
Author-X-Name-First: A.
Author-X-Name-Last: Razzaque
Author-Name: D. Walker
Author-X-Name-First: D.
Author-X-Name-Last: Walker
Author-Name: D. Canning
Author-X-Name-First: D.
Author-X-Name-Last: Canning
Title: The effect of childhood measles vaccination on school enrolment in Matlab, Bangladesh
Abstract:
There is increasing evidence that early childhood health interventions
have long-term effects on cognitive development, educational achievement
and adult productivity. We examine the effect of measles vaccination on
the school enrolment of children in Matlab, Bangladesh. An intensive
measles vaccination programme was introduced in one area in 1982, and
extended to another in 1985, while a third area acted as a control. Using
this staggered roll-out as an instrument, we find that age-appropriate
vaccination raises the probability that a boy has enrolled in school by
7.4 percentage points but appears to have no effect on girls' enrolment.
Journal: Applied Economics
Pages: 6019-6040
Issue: 55
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1061647
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061647
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Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:6019-6040
Template-Type: ReDIF-Article 1.0
Author-Name: L. Beaudin
Author-X-Name-First: L.
Author-X-Name-Last: Beaudin
Author-Name: J. Skaza
Author-X-Name-First: J.
Author-X-Name-Last: Skaza
Title: Measuring the total impact of demographic and behavioural factors on the risk of obesity accounting for the depression status: a structural model approach using new BMI
Abstract:
Building upon previous studies that highlight considerable overlap in the
influential factors of both obesity and depression, we employ a structural
model to investigate the direct and indirect impacts of behavioural and
demographic factors on obesity. We use new body mass index (BMI) to
calculate the obesity status and find a significant relationship between
an individual's depression status and his/her obesity status. The results
and simulations imply that demographic and behavioural factors can
significantly influence the obesity status both directly and indirectly
through their impact on depression. Therefore, this study suggests that
models which do not account for these various pathways of influence are
most likely misrepresenting the impact of these factors on obesity.
Journal: Applied Economics
Pages: 6041-6053
Issue: 55
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1061648
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061648
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Handle: RePEc:taf:applec:v:47:y:2015:i:55:p:6041-6053
Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Yawei Guo
Author-X-Name-First: Yawei
Author-X-Name-Last: Guo
Author-Name: Wanhai You
Author-X-Name-First: Wanhai
Author-X-Name-Last: You
Title: An empirical research of crude oil price changes and stock market in China: evidence from the structural breaks and quantile regression
Abstract:
This article investigates the relationship between real crude oil price
changes and the Chinese real stock market at the industry level. Our study
uses monthly data over the period 1994:03 to 2013:12. Based on
input-output (IO) tables, this article will explore more details for the
driving factors of sensitivity to oil price changes. We divide these
driving factors into cost- and demand-side dependence. Empirical results
reveal that sensitivity varies across different industries and periods
based on structural breaks and asymmetric effects of oil price changes.
Furthermore, some industries seemingly not directly affected by oil are
sensitive to the real oil price changes. Finally, using a penalized
quantile regression for panel data, we find that these two factors
significantly affect lower, but not upper, quantile of sensitivity.
Journal: Applied Economics
Pages: 6055-6074
Issue: 56
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1064076
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064076
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Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6055-6074
Template-Type: ReDIF-Article 1.0
Author-Name: Afsin Sahin
Author-X-Name-First: Afsin
Author-X-Name-Last: Sahin
Author-Name: Burak Dogan
Author-X-Name-First: Burak
Author-X-Name-Last: Dogan
Author-Name: Berument
Author-X-Name-First:
Author-X-Name-Last: Berument
Title: Effectiveness of the reserve option mechanism as a macroeconomic prudential tool: evidence from Turkey
Abstract:
This article assesses the effectiveness of a novel macroprudential tool -
the reserve option mechanism (ROM) - which Turkey's central bank developed
during the post-2008 period and has employed to control the risk
associated with excessive capital flows. We assess how capital flows have
affected economic variable changes since the introduction and usage of the
ROM. Empirical evidence gathered from Turkey suggests that the tool
decreases the effect of capital flow on capital flow (positive shock to
capital flow dies out faster or becomes less persistent) and diminishes
the effects of capital flow shocks on exchange and interest rates.
Journal: Applied Economics
Pages: 6075-6087
Issue: 56
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1064077
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064077
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Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6075-6087
Template-Type: ReDIF-Article 1.0
Author-Name: Hanxiong Zhang
Author-X-Name-First: Hanxiong
Author-X-Name-Last: Zhang
Author-Name: Robert Hudson
Author-X-Name-First: Robert
Author-X-Name-Last: Hudson
Author-Name: Hugh Metcalf
Author-X-Name-First: Hugh
Author-X-Name-Last: Metcalf
Author-Name: Viktor Manahov
Author-X-Name-First: Viktor
Author-X-Name-Last: Manahov
Title: Identification of house price bubbles using user cost in a state space model
Abstract:
This article studies how much variation in house prices
results from nonfundamental factors. We propose a
relative valuation approach to quantifying a bubble in
housing by incorporating the housing User Cost into a state space model.
We find that UK house prices were undervalued from
January 1995 to May 2001 and subsequently moved into a
bubble over the period to October 2012. Our results
support the bounded rationality hypothesis in the long run. However, we
also find that the irrational and the rational expectation hypotheses can
coexist in the short run when explosive bubbles are
driven by price dynamics.
Journal: Applied Economics
Pages: 6088-6101
Issue: 56
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1064078
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064078
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Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6088-6101
Template-Type: ReDIF-Article 1.0
Author-Name: Chung
Author-X-Name-First:
Author-X-Name-Last: Chung
Author-Name: Karel Hrazdil
Author-X-Name-First: Karel
Author-X-Name-Last: Hrazdil
Title: The impact of trading floor closure on market efficiency: evidence from the Toronto Stock Exchange
Abstract:
On 23 April 1997, the Toronto Stock Exchange closed its trading floor,
making it at that time the second-largest stock exchange in North America
to choose a purely electronic trading environment for its equities.
Exploiting this natural experiment, we find that the move to electronic
trading resulted in a higher cost of immediacy (bid-ask spreads),
increased information asymmetry and an overall deterioration of
short-horizon return predictability from past order flows, reducing the
efficiency of price discovery. Our results suggest that the human element
plays an important role in order execution and complements automated
electronic trading by improving the efficiency of incorporating new
information into prices.
Journal: Applied Economics
Pages: 6102-6119
Issue: 56
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1064079
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064079
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Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6102-6119
Template-Type: ReDIF-Article 1.0
Author-Name: Chun Jiang
Author-X-Name-First: Chun
Author-X-Name-Last: Jiang
Author-Name: Yi Wang
Author-X-Name-First: Yi
Author-X-Name-Last: Wang
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Title: Are there bubbles in Chinese RMB-dollar exchange rate? Evidence from generalized sup ADF tests
Abstract:
This article uses recently developed generalized sup ADF (GSADF) unit root
tests into the analysis of nominal RMB-dollar exchange rates bubbles.
Based on the results from the GSADF tests, we find strong evidence of
explosive behaviour in the nominal exchange rate and investigate two
bubbles there. The first bubble is during 2005-2006 which is determined
neither by the relative prices of traded goods nor the relative price of
nontraded goods. The second bubble busts in 2008 during subprime crisis
period, and which is determined by the relative prices of traded goods but
not the relative price of nontraded goods. There is no bubble before 2005
as the exchange rate is under fixed regime. As for this result, some
expansionary monetary and fiscal policies are required in China since
these are the most efficient and effective under a bubble burst scenario.
Journal: Applied Economics
Pages: 6120-6135
Issue: 56
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1064080
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064080
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6120-6135
Template-Type: ReDIF-Article 1.0
Author-Name: Berdiev
Author-X-Name-First:
Author-X-Name-Last: Berdiev
Author-Name: Cullen Pasquesi-Hill
Author-X-Name-First: Cullen
Author-X-Name-Last: Pasquesi-Hill
Author-Name: Saunoris
Author-X-Name-First:
Author-X-Name-Last: Saunoris
Title: Exploring the dynamics of the shadow economy across US states
Abstract:
This article examines the dynamics of the shadow economy using data for 50
US states over the period 1998-2008. Using a panel VAR model, we analyse
the impulse response of the shadow economy to an orthogonal shock in
capital tax rates, educational attainment, union participation and gross
state product. We find evidence of significant dynamics underlying the
relationship between the shadow economy and its determinants. The results
remain robust to alternate measures of the determinants of the shadow
economy, alternate causal ordering of the variables in the system and
conditioning on the level of income in each state.
Journal: Applied Economics
Pages: 6136-6147
Issue: 56
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1064081
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064081
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6136-6147
Template-Type: ReDIF-Article 1.0
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: International income inequality, 2005-2011: what a difference 6 years can make
Abstract:
While much attention has recently been given to the rising inequality in
high-income countries, particularly the US, inequality across countries
has received less attention. Based on reports of the International
Comparison Program, which provide the most accurate measures of PPP income
at the country level, this study computes three highly recommended
measures of intercountry income inequality for the years 2005 and 2011. A
dramatic, and perhaps unprecedented, fall in intercountry inequality over
the relatively short period of 6 years is noted. As a correlate of
the fall in intercountry inequality, aggregate PPP GDP for six major
high-income countries is compared with that for three large developing
countries, and the dramatic increase over the 6-year period in the ratio
of the total GDP of the three developing countries to that for the six
high-income countries is noted, thus extending, from the most accurate
data, the theme of the 'rise of the South' articulated in Human
Development Report 2013.
Journal: Applied Economics
Pages: 6148-6154
Issue: 56
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1064082
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064082
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:56:p:6148-6154
Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova
Author-X-Name-First: Petra
Author-X-Name-Last: Maresova
Author-Name: Blanka Klimova
Author-X-Name-First: Blanka
Author-X-Name-Last: Klimova
Author-Name: Vojtěch Tuček
Author-X-Name-First: Vojtěch
Author-X-Name-Last: Tuček
Title: Use of social networks in banking: a study in the Czech Republic
Abstract:
Social networks are becoming more and more important nowadays. Apart from
regular users of the Internet, companies have started to use them in their
business. Their potential is that a great number of people, future clients
of big companies, use them on a daily basis. Thus, the aim of this article
is to analyse the use of social networks in the banking sector of the
Czech Republic, particularly with respect to customer support. The methods
of this study include common data analysis and professional analysis.
Common data analysis consists of the evaluation of public data from social
networks and web pages of the selected bank institutions. The professional
analysis is conducted by paid professional analytical tools that provide
more detailed statistics. The findings of the study show that social
networks are now well-established tools for the Czech banks to attract
both their current and potential clients. The Czech banks seem to care
about their clients by trying to meet their needs. Customer care and
services provided, however, differ with type of bank.
Journal: Applied Economics
Pages: 6155-6169
Issue: 57
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1064083
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1064083
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6155-6169
Template-Type: ReDIF-Article 1.0
Author-Name: K. Dengler
Author-X-Name-First: K.
Author-X-Name-Last: Dengler
Title: Effectiveness of sequences of One-Euro-Jobs for welfare recipients in Germany
Abstract:
Empirical evidence reveals that German welfare recipients often
participate in multiple active labour market programmes (ALMPs). However,
evidence on the effectiveness of ALMPs exists mostly for single ALMP
participations so far. This article evaluates the sequential participation
in ALMPs for welfare recipients in Germany based on comprehensive
administrative data to control for dynamic selection that arises in the
evaluation of sequences. Using a dynamic causal model and an inflow sample
of welfare recipients, the article analyses the effects of sequences of a
public employment programme called One-Euro-Jobs on labour market
outcomes. For female participants in One-Euro-Jobs in the first period,
especially in West Germany, the results imply that participating in two
consecutive One-Euro-Jobs compared with receiving only welfare benefits
for two consecutive periods better facilitates integration into regular
employment. Moreover, taking part in a One-Euro-Job directly after entry
into welfare receipt is also more effective for participants in
One-Euro-Jobs in the first period than taking part in a One-Euro-Job in a
later period, especially for East German men (although not for West German
women). However, I also find evidence of so-called programme careers and
stepwise integration into regular employment.
Journal: Applied Economics
Pages: 6170-6190
Issue: 57
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1066488
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1066488
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Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6170-6190
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: John Vaz
Author-X-Name-First: John
Author-X-Name-Last: Vaz
Title: Directional accuracy, forecasting error and the profitability of currency trading: model-based evidence
Abstract:
Three models (the flexible-price monetary model, PPP and a univariate
ARIMA model) are estimated for 45 currency pairs to find out if the
profitability of forecasting-based currency trading is more related to the
ability of the underlying model to predict the direction of change than
the magnitude of the forecasting error. Theoretical considerations show
that a correct prediction of the direction of change is neither a
necessary nor a sufficient condition for a profitable trade. The results
of the exercise indicate that profitability is more strongly correlated
with directional accuracy than with the magnitude of the error.
Journal: Applied Economics
Pages: 6191-6199
Issue: 57
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1068917
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068917
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Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6191-6199
Template-Type: ReDIF-Article 1.0
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Khaled Guesmi
Author-X-Name-First: Khaled
Author-X-Name-Last: Guesmi
Author-Name: Nguyen
Author-X-Name-First:
Author-X-Name-Last: Nguyen
Author-Name: Fr餩ric Teulon
Author-X-Name-First: Fr餩ric
Author-X-Name-Last: Teulon
Title: Modelling inflation shifts and persistence in Tunisia: perspectives from an evolutionary spectral approach
Abstract:
This article examines the dynamic characteristics of the inflation rate in
Tunisia over the last two decades, and particularly following the onset of
the Arab Spring in 2010 which causes distortions in this country's
monetary policy. We focus on the two specific dimensions of the Tunisian
inflation rate: inflation regimes and persistence. We tackle this issue by
adopting an evolutionary spectral approach, initially proposed by
Priestley and Tong (1973). Our main findings indicate a stable inflation
regime in the last 10 years, with an average inflation rate of around
5.5%. It is also found that the Tunisian inflation experienced a high
degree of inertia which reflects its gradual responses to shocks. We also
discuss the policy implications of these results, which typically require
policy-makers to implement sound institutional reforms to reduce
inflation.
Journal: Applied Economics
Pages: 6200-6210
Issue: 57
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1068918
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068918
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Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6200-6210
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriele Marconi
Author-X-Name-First: Gabriele
Author-X-Name-Last: Marconi
Author-Name: Jo Ritzen
Author-X-Name-First: Jo
Author-X-Name-Last: Ritzen
Title: Determinants of international university rankings scores
Abstract:
This article analyses the relationship between a university's score in
international university rankings, its expenditure per student and other
factors such as university mission, size and productive inefficiency. We
develop an economic model of rankings and universities and estimate this
model with data on universities classified in the top 200 by the Times
Higher Education Supplement ranking of 2007. We find that the elasticity
of a university's ranking score for the expenditure per student is between
4% and 9%, and that there are no clear signs of inefficiency in production
among the top 200 universities. University mission and size are also
significant predictors of ranking score. These results are especially
interesting given the relevance attributed to rankings by government
officials, university directors and students.
Journal: Applied Economics
Pages: 6211-6227
Issue: 57
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1068921
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068921
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Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6211-6227
Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Palombi
Author-X-Name-First: Silvia
Author-X-Name-Last: Palombi
Author-Name: Roger Perman
Author-X-Name-First: Roger
Author-X-Name-Last: Perman
Author-Name: Christophe Tav鲡
Author-X-Name-First: Christophe
Author-X-Name-Last: Tav鲡
Title: Regional growth and unemployment in the medium run: asymmetric cointegrated Okun's Law for UK regions
Abstract:
This article tests for the presence of a medium-run asymmetric Okun's Law
relationship between regional output and regional unemployment rate in UK
regions. The test is performed with a panel data version of the hidden
cointegration technique suggested by Granger and Yoon. A novelty of the
article is to combine the method of hidden cointegration with a panel data
method of removing cross-sectional dependence. The medium-run Okun
relationship for regions in the UK appears to confirm results found
elsewhere in the literature on countries as a whole, although the
coefficients tend to be smaller.
Journal: Applied Economics
Pages: 6228-6238
Issue: 57
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1068922
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068922
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Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6228-6238
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Huck
Author-X-Name-First: Nicolas
Author-X-Name-Last: Huck
Title: Pairs trading: does volatility timing matter?
Abstract:
Pairs trading is a dollar-neutral trading strategy. Using the components
of two major stock indices, the S&P 500 and the Nikkei 225, this article
deals with the performance of a pairs trading system based on various
pairs selection methods (distance, stationarity, cointegration) over a
10-year period. On both markets, using a classical framework,
cointegration appears superior and effective. On the U.S. market and also
in Japan to a lower extent, pairs trading strategies exhibited an
impressive performance during the 2008 financial crisis. Bearish periods
are associated with a high level of the VIX index: the 'investor fear
gauge'. Using a modified trading system, this article examines the link
between pairs trading performance and volatility/VIX timing. It is shown
that for the best selection technique (cointegration), timing volatility
has no economic value in a pairs trading context.
Journal: Applied Economics
Pages: 6239-6256
Issue: 57
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1068923
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068923
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Handle: RePEc:taf:applec:v:47:y:2015:i:57:p:6239-6256
Template-Type: ReDIF-Article 1.0
Author-Name: Andr鳠Navarro-Galera
Author-X-Name-First: Andr鳠
Author-X-Name-Last: Navarro-Galera
Author-Name: Salvador Rayo-Cant
Author-X-Name-First: Salvador
Author-X-Name-Last: Rayo-Cant
Author-Name: Juan Lara-Rubio
Author-X-Name-First: Juan
Author-X-Name-Last: Lara-Rubio
Author-Name: Dionisio Buend𫑃arrillo
Author-X-Name-First: Dionisio
Author-X-Name-Last: Buend𫑃arrillo
Title: Loan price modelling for local governments using risk premium analysis
Abstract:
Previous studies have highlighted the question of government loan interest
as one of great current importance. Government borrowing levels are high,
and reducing interest payments would generate savings to meet other
spending needs and/or to lower taxation, thus supporting the
sustainability of public finances. However, no previous study has
presented a method for a local government to calculate its own credit risk
and thus be in a position to negotiate lower interest rates on its
borrowing. This article defines a financial model that enables local
governments to estimate the interest rate payable on a bank loan, based on
their credit risk premium, in accordance with the Basel II rules and the
findings of our empirical study of large local governments.
Journal: Applied Economics
Pages: 6257-6276
Issue: 58
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1068924
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068924
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Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6257-6276
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Pizzutilo
Author-X-Name-First: Fabio
Author-X-Name-Last: Pizzutilo
Title: Isolating the systematic and unsystematic components of a single stock's (or portfolio's) standard deviation: a comment
Abstract:
In an article that recently appeared in this journal, Marshall (2015)
argued that the systematic component of the SD of a stock or of a
portfolio of stocks is its beta scaled by the SD of the market returns.
She also contended that the beta mispredicts the actual systematic risk of
a stock or of a portfolio of stocks. In this article, I dispute this
conclusion, showing that it has been induced by an imperfection in the
construction of the empirical application and by some misinterpretations
of the results. A corrected replication of the empirical study of Marshall
(2015) is provided, along with some comments. I conclude that both the
beta and the systematic component in Marshall (2015) are effective
measures of systematic risk.
Journal: Applied Economics
Pages: 6277-6283
Issue: 58
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1068925
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068925
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Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6277-6283
Template-Type: ReDIF-Article 1.0
Author-Name: Razzak
Author-X-Name-First:
Author-X-Name-Last: Razzak
Title: Wage, productivity and unemployment: microeconomics theory and macroeconomics data
Abstract:
We confront microeconomics theory with macroeconomics data. Unemployment
results from two main micro-level decisions of workers and firms. Most of
the efficiency wage and bargaining theories predict that over the business
cycle, unemployment falls below its natural rate when the worker's real
wage exceeds the reservation wage. However, these theories have weak
empirical support. Firm's decision predicts that when the worker's real
wage exceeds the marginal product of labour (MPL), unemployment increases
above its natural rate. Accounting for this microeconomic decision helps
explain almost all the fluctuations of US unemployment.
Journal: Applied Economics
Pages: 6284-6300
Issue: 58
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1068926
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1068926
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Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6284-6300
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Otero-Gonzᬥz
Author-X-Name-First: Luis
Author-X-Name-Last: Otero-Gonzᬥz
Author-Name: Miguel Ezcurra-P鲥z
Author-X-Name-First: Miguel
Author-X-Name-Last: Ezcurra-P鲥z
Author-Name: Rub鮠Lado-Sestayo
Author-X-Name-First: Rub鮠
Author-X-Name-Last: Lado-Sestayo
Author-Name: Pablo DurᮭSantomil
Author-X-Name-First: Pablo
Author-X-Name-Last: DurᮭSantomil
Title: The main determinants of subprime securitization in the Spanish RMBS securities
Abstract:
This article is a model to identify the determinants of subprime
securitizations. In several countries, there is no classification of the
underlying assets. Consequently, investors have fewer tools to identify
which securitizations are subprime. Using a sample of mortgage
securitization transactions issued in Spain from 1998 until the first half
of 2009, we analyse the effects of a great securitization expansion.
According to previous literature, we identify main determinants of
residential mortgage-backed security default rate and construct a
prediction model of default rate. By means of different probit models, our
results show the importance of loan to value and seasoning, among other
determinants, as predictive indicators of default rates. The results
obtained point to more relaxed lending standards due to higher
securitization levels. Our findings help to gain a more accurate
perspective of the true effects of the mortgage securitization process and
reinforce the role of certain determinants as default predictors in a
context without a classification of underlying assets.
Journal: Applied Economics
Pages: 6301-6316
Issue: 58
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071468
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071468
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Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6301-6316
Template-Type: ReDIF-Article 1.0
Author-Name: Turki Abalala
Author-X-Name-First: Turki
Author-X-Name-Last: Abalala
Author-Name: Robert Sollis
Author-X-Name-First: Robert
Author-X-Name-Last: Sollis
Title: The Saturday effect: an interesting anomaly in the Saudi stock market
Abstract:
The vast majority of empirical research on calendar anomalies has studied
financial markets in countries where the Western calendar is used. This
article investigates day of the week effects in Saudi Arabia's stock
market, where an Islamic calendar is used and where Saturday is the first
working day of the week over the sample period considered. The Saudi stock
market is the largest in the Gulf region, and we consider both total
market data (the TASI index) and data for 15 sector indices. Our
investigation reveals the existence of a positive Saturday effect, which
contrasts with the results on first day of the week effects that are
typically obtained for Western calendar markets.
Journal: Applied Economics
Pages: 6317-6330
Issue: 58
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071469
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071469
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Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6317-6330
Template-Type: ReDIF-Article 1.0
Author-Name: Galina Besstremyannaya
Author-X-Name-First: Galina
Author-X-Name-Last: Besstremyannaya
Title: Heterogeneous effect of coinsurance rate on healthcare expenditure: generalized finite mixtures and matching estimators
Abstract:
The article proposes a combination of finite mixture models and matching
estimators to account for heterogeneous and nonlinear effects of the
coinsurance rate on healthcare expenditure. The analysis with panel data
for adult Japanese consumers in 2008-2010 and for female consumers in
2000-2010 demonstrates the presence of subpopulations with high, medium
and low healthcare expenditure, and subpopulation membership is explained
by lifestyle variables. Generalized finite mixtures provide adequate fit
compared to loglinear model. Conditional average treatment effect
estimations reveal the existence of nonlinear effects of the coinsurance
rate in the subpopulation with high expenditure.
Journal: Applied Economics
Pages: 6331-6361
Issue: 58
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071470
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071470
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Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6331-6361
Template-Type: ReDIF-Article 1.0
Author-Name: Brent
Author-X-Name-First:
Author-X-Name-Last: Brent
Title: Valuing the prevention of elder abuse
Abstract:
We develop a framework for valuing cases of serious elder abuse. We use
the preferences of the elderly who are abused, the victims, to help
identify: what offenses are of concern, the seriousness of any particular
offense and the value of preventing any particular offense. The variable
revealing the valuations is the victim's willingness to prosecute in New
York City police complaint reports. Using our framework we found that it
took a loss of $38 462 in order to be classed as a serious financial
offense. With this monetary magnitude as a benchmark we were able to value
nonfinancial serious offenses at up to $50 000 per offense.
Journal: Applied Economics
Pages: 6362-6373
Issue: 58
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071471
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071471
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Handle: RePEc:taf:applec:v:47:y:2015:i:58:p:6362-6373
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Musumba
Author-X-Name-First: Mark
Author-X-Name-Last: Musumba
Author-Name: Mjelde
Author-X-Name-First:
Author-X-Name-Last: Mjelde
Author-Name: Adusumilli
Author-X-Name-First:
Author-X-Name-Last: Adusumilli
Title: Remittance receipts and allocation: a study of three African countries
Abstract:
Remittances may influence household expenditures, poverty rates,
development and investments in the receiving country. Using World Bank
survey data from Ethiopia, Uganda and Kenya, the influence of remitters'
and recipients' characteristics on remittance amounts and allocation is
examined. Effects of the remitter-receiver characteristics on remittance
amounts are generally similar between countries. Such similarities imply a
potential similar effect of policies in these countries. Age, household
income, frequency of communication, family relations with remitter and
country the recipient resided in influence remittance allocation.
Recipients in Ethiopia and Uganda are more likely to allocate remittance
towards savings than those in Kenya.
Journal: Applied Economics
Pages: 6375-6389
Issue: 59
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071472
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071472
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Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6375-6389
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Caporale
Author-X-Name-First: Tony
Author-X-Name-Last: Caporale
Title: Exogenous tax changes and interest rates: testing for Ricardian equivalence using an efficient markets model
Abstract:
This article tests the Ricardian theory (i.e., Barro 1974) using Mishkin's
(1981, 1982) efficient markets model of interest rates. Employing Romer
and Romer's (2010) measure exogenous tax changes, I am able to test
whether the U.S. bond market reacts in a Keynesian or Ricardian manner to
exogenous tax policy changes. This helps avoid the endogeneity problems
associated with measuring the interest rate effects of deficits and
provides a cleaner test of the pure Ricardian thought experiment. I find a
significant negative relationship between tax changes and interest rates
which is inconsistent with the Ricardian model and support the Keynesian
crowding out framework.
Journal: Applied Economics
Pages: 6390-6394
Issue: 59
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071473
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071473
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Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6390-6394
Template-Type: ReDIF-Article 1.0
Author-Name: Baharumshah
Author-X-Name-First:
Author-X-Name-Last: Baharumshah
Author-Name: Siew-Voon Soon
Author-X-Name-First: Siew-Voon
Author-X-Name-Last: Soon
Author-Name: Wohar
Author-X-Name-First:
Author-X-Name-Last: Wohar
Title: Parity reversion in the Asian real exchange rates: new evidence from the local-persistent model
Abstract:
This article investigates the time-series properties of 13 Asian real
exchange rates (RERs) vis-୶is the US dollar. The half-life point
estimates drawn from the local-persistent model are all less than
2 years, with a finite upper bound. There is no evidence to indicate
that the Asian financial crisis has altered the speed of the purchasing
power parity (PPP) adjustments. We find that the persistence of RERs over
the last three decades remains unchanged in majority of the cases. Given
the fairly rapid speed of adjustments and their corresponding confidence
intervals, we conclude that the PPP puzzle does not exist in these
countries.
Journal: Applied Economics
Pages: 6395-6408
Issue: 59
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071474
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071474
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Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6395-6408
Template-Type: ReDIF-Article 1.0
Author-Name: Cristian Barra
Author-X-Name-First: Cristian
Author-X-Name-Last: Barra
Author-Name: Giovanna Bimonte
Author-X-Name-First: Giovanna
Author-X-Name-Last: Bimonte
Author-Name: Pietro Spennati
Author-X-Name-First: Pietro
Author-X-Name-Last: Spennati
Title: Did fiscal institutions affect Wagner's law in Italy during 1951-2009 period? An empirical analysis
Abstract:
In this article, we test Wagner's assumption of the one-sided directional
flow moving from economic growth to public spending in Italy for the
1951-2009 period. We pay particular attention to the impact of certain
regime shifts related to changes in Italian budget regulations and
procedures and the relevance of fiscal institutions to the fiscal
performance equation, i.e. the public spending-national income nexus. The
Error Correction Model is estimated to measure short-run dynamic effects
and the long-run equilibrium between the two time series. The empirical
evidence suggests that Wagner's law is supported. In regard to policy
implications, we find that public spending reacted less to positive
changes in economic growth when the strengthening of the Ministry of
Finance occurred in 1997 (Ciampi's reform). Some sensitivity analyses
confirm our empirical evidence.
Journal: Applied Economics
Pages: 6409-6424
Issue: 59
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071475
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071475
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6409-6424
Template-Type: ReDIF-Article 1.0
Author-Name: Alhashel
Author-X-Name-First:
Author-X-Name-Last: Alhashel
Author-Name: Alojayan
Author-X-Name-First:
Author-X-Name-Last: Alojayan
Title: Drivers of price reaction to rights issue announcements in the Kuwait Stock Exchange
Abstract:
This study examines the drivers behind stock price reactions to
announcements of rights issues by firms listed on the Kuwaiti Stock
Exchange for the period 2003-2013. We find higher cumulative abnormal
returns for firms that undertake larger issues, with the issue size
reflecting the availability of favourable investment opportunities and
their potential positive impact on firms' earnings. We also document a
positive price reaction in firms that are affiliated with a family group.
We interpret this as evidence that the proceeds of the rights offering
would be employed effectively when the firm is controlled by a family
firm. No evidence was found for the price pressure and pricing effects.
Journal: Applied Economics
Pages: 6425-6437
Issue: 59
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071476
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071476
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Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6425-6437
Template-Type: ReDIF-Article 1.0
Author-Name: Li Dai
Author-X-Name-First: Li
Author-X-Name-Last: Dai
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: A DSGE model of China
Abstract:
We use available methods for testing macro models to evaluate a model of
China over the period from Deng Xiaoping's reforms up until the crisis
period. Bayesian ranking methods are heavily influenced by controversial
priors on the degree of price/wage rigidity. When the overall models are
tested by Likelihood or Indirect Inference methods, the New Keynesian
model is rejected in favour of one with a fair-sized competitive product
market sector. This model behaves quite a lot more 'flexibly' than the New
Keynesian.
Journal: Applied Economics
Pages: 6438-6460
Issue: 59
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071477
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071477
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Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6438-6460
Template-Type: ReDIF-Article 1.0
Author-Name: Beckman
Author-X-Name-First:
Author-X-Name-Last: Beckman
Author-Name: Gregory DeAngelo
Author-X-Name-First: Gregory
Author-X-Name-Last: DeAngelo
Author-Name: Smith
Author-X-Name-First:
Author-X-Name-Last: Smith
Title: Dictator monopolies and essential goods: experimental evidence
Abstract:
Monopolists set prices and if the good is unessential this may place the
consumer in an uncomfortable position. But if the good is essential the
consumer faces a pay-to-live or -die choice. Dictator and ultimatum games
are superficially similar in that one game offers the right of refusal,
while the other does not. The dictator monopoly is, however, not a game,
and behaviour could be radically different in the market environment
versus game environment. We recast the dictator game as a dictator
monopoly experiment and find that the fairness characteristic of the game
evaporates quickly as rounds progress.
Journal: Applied Economics
Pages: 6461-6478
Issue: 59
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1071478
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1071478
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6461-6478
Template-Type: ReDIF-Article 1.0
Author-Name: Simeon Coleman
Author-X-Name-First: Simeon
Author-X-Name-Last: Coleman
Author-Name: Vitor Leone
Author-X-Name-First: Vitor
Author-X-Name-Last: Leone
Title: An investigation of regime shifts in UK commercial property returns: a time series analysis
Abstract:
The random-walk hypothesis, vis-୶is asset price,
suggests that prices traded in a market cannot be predicted based on
historical information. Employing unsecuritized UK commercial property
returns, we analyse this hypothesis by investigating regime shifts or
multiple changes in persistence in the series. Our results uncover regime
shifts in both the aggregate and sector-specific data. Specifically, the
shifts are less frequent in the Industrial sector,
compared to the Office, Retail and Aggregate returns
data. We highlight some implications for academics, practitioners and
regulators.
Journal: Applied Economics
Pages: 6479-6492
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1080805
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080805
File-Format: text/html
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Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6479-6492
Template-Type: ReDIF-Article 1.0
Author-Name: Soodabeh Sarafrazi
Author-X-Name-First: Soodabeh
Author-X-Name-Last: Sarafrazi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Title: Interactions between real economic and financial sides of the US economy in a regime-switching environment
Abstract:
This objective of this study is to examine the linkages between real
(economic) and financial variables in the United States in a
regime-switching environment that accounts explicitly for high volatility
in the stock market and high stress in financial markets. Since the
linearity test shows that the linear model should be rejected, we employ
the Markov-switching VECM to examine the same objective using the Bayesian
Markov-chain Monte Carlo method. The regime-dependent impulse response
function (RDIRF) highlights the increasing importance of the financial
sector of the economy during stress periods. The responses and their
fluctuations are significantly greater in the high-volatility regime than
in the low-volatility regime.
Journal: Applied Economics
Pages: 6493-6518
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1080806
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080806
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Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6493-6518
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Zanella
Author-X-Name-First: Fernando
Author-X-Name-Last: Zanella
Author-Name: Peter Oyelere
Author-X-Name-First: Peter
Author-X-Name-Last: Oyelere
Author-Name: Shahadut Hossain
Author-X-Name-First: Shahadut
Author-X-Name-Last: Hossain
Title: Are costs really sticky? Evidence from publicly listed companies in the UAE
Abstract:
This article measures the degree of adjustment between operating revenues
and costs for publicly listed companies in the United Arab Emirates (UAE).
Traditional cost models assume that variable costs change proportionally
in response to an upward or downward fluctuation in demand. However, in
recent years, such an assumption has been questioned by a variety of
papers from the economics and accounting fields. Typically, cost
stickiness is defined as costs decreasing by less than 1% when sales
decrease by 1%, while reacting closer to the proportion of change when
sales increase. This study, unlike the vast majority of the literature,
did not find cost stickiness in the UAE after using panel data regression
analysis. The main explanation is that UAE has mostly expatriate labour
force that does not have the typical benefits of employment protection
legislation (EPL) available in other national jurisdictions. EPL is a main
reason that costs adjustments during decreasing sales is curbed due to the
associated costs of firing employees.
Journal: Applied Economics
Pages: 6519-6528
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1080807
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080807
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Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6519-6528
Template-Type: ReDIF-Article 1.0
Author-Name: Marlies Kornfeld
Author-X-Name-First: Marlies
Author-X-Name-Last: Kornfeld
Author-Name: Carsten Ochsen
Author-X-Name-First: Carsten
Author-X-Name-Last: Ochsen
Title: Teachers' versus parental choice and the tracking distribution of students: a natural experiment
Abstract:
This article studies the secondary school track choice and considers to
what extent parents' and teachers' assessment of students diverge. We take
advantage of a reform in the German state of North Rhine-Westphalia (NRW)
in 2006. The reform replaced parents' choice about their children's
secondary school type by a binding teacher recommendation. Our data
comprise class-level information on all public primary schools in the
state. We find that teachers tend to recommend higher school types than
parents. However, more precise analysis shows that this effect can be
limited to districts with above average proportion of immigrants.
Journal: Applied Economics
Pages: 6529-6542
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1080808
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080808
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Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6529-6542
Template-Type: ReDIF-Article 1.0
Author-Name: Ghassen El-Montasser
Author-X-Name-First: Ghassen
Author-X-Name-Last: El-Montasser
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Convergence of greenhouse gas emissions among G7 countries
Abstract:
The convergence of air pollutants is a major concern for policymakers
since all the countries pursue the goal of allocating the emissions
equally internationally in the future. Hence, the examination of the
existence of convergence is important for the climate change protection of
the earth. In this article, greenhouse gas (GHG) emissions convergence
among the G7 countries for the period between 1990 and 2011 is examined
using the pairwise testing technique proposed by that aims to analyse
probabilistic convergence across a large number of cross-sectional units.
Next, we proceed with multivariate tests for stability and the existence
of unit roots. Finally, the analysis is complemented by the use of the
panel stationarity test accounting for structural changes as proposed by
Carrion-i-Silvestre et al. (2005) test. Overall, the
results do not confirm the hypothesis of convergence for the countries in
question, although, more recently, the countries have shown a small
decline in their GHG emissions.
Journal: Applied Economics
Pages: 6543-6552
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1080809
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080809
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Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6543-6552
Template-Type: ReDIF-Article 1.0
Author-Name: Hauge
Author-X-Name-First:
Author-X-Name-Last: Hauge
Author-Name: Prieger
Author-X-Name-First:
Author-X-Name-Last: Prieger
Title: Evaluating the impact of the American Recovery and Reinvestment Act's BTOP on broadband adoption
Abstract:
The American Recovery and Reinvestment Act's Broadband Technology
Opportunities Program (BTOP) spent $4.7 billion during 2009-2013 to,
inter alia, increase broadband adoption in underserved
communities. We characterize the BTOP grants and examine the impact of the
awards on broadband adoption. Econometric specifications controlling for
award endogeneity related to observed and unobserved county-level factors
find that spending is apparently associated with increased broadband
adoption. Further investigation, however, reveals that the impacts of
spending are nonlinear and even nonmonotonic over the range of
county-level BTOP spending in the data. Controlling for trends to reduce
the potential for spurious correlation between spending and outcomes
removes most of the significance of the results. We conclude with three
lessons for policymakers derived from the uncertain outcomes of BTOP
spending found in our exploration.
Journal: Applied Economics
Pages: 6553-6579
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1080810
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080810
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Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6553-6579
Template-Type: ReDIF-Article 1.0
Author-Name: Yi Wu
Author-X-Name-First: Yi
Author-X-Name-Last: Wu
Author-Name: Alan Tidwell
Author-X-Name-First: Alan
Author-X-Name-Last: Tidwell
Title: Inflation-hedging properties of regional Chinese real estate market: evidence from 35 cities in China
Abstract:
The housing markets in China have been gaining considerable interest from
investors, but the inflation-hedging characteristics of housing remain
ambiguous. Based on Chinese city-level data, this study evaluates
different inflation-hedging properties in eastern, middle and western real
estate markets using panel vector autoregressive (PVAR) models. Findings
suggest middle real estate markets afford the best hedging opportunities
for expected inflation, which is robust considering housing market
heterogeneity, financial crisis and the 2010 purchase restriction order.
Moreover, hedging efficacy of anticipated inflation differs between
markets with low and high supply-demand ratio.
Journal: Applied Economics
Pages: 6580-6598
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1080811
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080811
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Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:6580-6598
Template-Type: ReDIF-Article 1.0
Author-Name: Ferreira
Author-X-Name-First:
Author-X-Name-Last: Ferreira
Author-Name: Oliveira
Author-X-Name-First:
Author-X-Name-Last: Oliveira
Title: Portfolio efficiency analysis with SFA: the case of PSI-20 companies
Abstract:
This study aimed to assess the technical efficiency (TE) of individual
companies and their respective sectors that are traded on the Portuguese
stock market. We accomplished this by combining the internal input
variables (e.g., 'market value and return') with exogenous variables
(e.g., 'interest income', 'depreciation', 'cost of goods', 'employees' and
'net sales') into a Stochastic Frontier Analysis (SFA) model. The TE of
the PSI-20 (Portuguese Stock Index) was estimated using factors that
affect efficiency variability. The main advantage of using the SFA
approach is its potential to discriminate between measurement error and
systematic inefficiencies in the estimation process. The results
demonstrated that TE is higher for enterprises in the industrial,
construction and distribution sectors, whereas the commercial banking
sector has the lowest TE scores. The 'employees' and 'depreciation' are
the variables which most contribute to stock market inefficiency.
Journal: Applied Economics
Pages: 1-6
Issue: 1
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073837
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073837
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Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:1-6
Template-Type: ReDIF-Article 1.0
Author-Name: Chung-ki Min
Author-X-Name-First: Chung-ki
Author-X-Name-Last: Min
Author-Name: Taek-seon Roh
Author-X-Name-First: Taek-seon
Author-X-Name-Last: Roh
Author-Name: Sangmee Bak
Author-X-Name-First: Sangmee
Author-X-Name-Last: Bak
Title: Growth effects of leisure tourism and the level of economic development
Abstract:
This study examines (1) whether leisure tourism can contribute to economic
growth and (2) if it does, whether its growth effects are constant across
levels of economic development. Leisure tourism differs from business
tourism in the causal relation with economic growth. In addition, the
natural and heritage-related resources for leisure tourism are limited and
not reproducible. This notion has a significant implication for the
relationship between the growth effects of leisure tourism and the level
of economic development. Thus, the current study focuses on leisure
tourism and controls for the effects of business tourism. As an economy
grows, the growth effects of leisure tourism are expected to diminish due
to a lack of continued productivity improvement in the tourism industry.
The empirical findings in this research reveal that leisure tourism
contributes to economic growth at an early stage of economic development,
but its contribution becomes weaker as the economy develops.
Journal: Applied Economics
Pages: 7-17
Issue: 1
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073838
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073838
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Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:7-17
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Devadoss
Author-X-Name-First: Stephen
Author-X-Name-Last: Devadoss
Author-Name: Jeff Luckstead
Author-X-Name-First: Jeff
Author-X-Name-Last: Luckstead
Title: Can a corrupt ruling party win a re-election through vote buying?
Abstract:
In many developing countries, it is common for electoral candidates to use
embezzled money to buy votes. We develop a dynamic model to analyse the
trade-off between economic performance and free handouts resulting from
corruption on an incumbent party's chances of being re-elected. The
results show, because voters anticipate handouts from the politicians,
politicians engage in corrupt behaviour early in the election cycle while
minimizing unemployment and maximizing vote buying at the end of the
election cycle.
Journal: Applied Economics
Pages: 18-23
Issue: 1
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073839
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073839
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Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:18-23
Template-Type: ReDIF-Article 1.0
Author-Name: Satria
Author-X-Name-First:
Author-X-Name-Last: Satria
Author-Name: Harun
Author-X-Name-First:
Author-X-Name-Last: Harun
Author-Name: Taruna
Author-X-Name-First:
Author-X-Name-Last: Taruna
Title: The Macro-prudential aspects of loan-to-deposit-ratio-linked reserve requirement
Abstract:
Micro-prudential regulation is sometimes more focused on the health of the
financial institutions and pays less attention to the objective of
sustainable intermediation and financial stability in the long run. A
macro-prudential policy is formulated to reduce this myopic tendency. This
article shows analytically how Loan-to-Deposit-Ratio (LDR)-linked Reserve
Requirement (RR) can be used to apply counter-cyclical measures in banking
industry by providing disincentive mechanism when a bank operates outside
the preferred operational corridor. At the lower limit of LDR, a
requirement of higher RR can push banks to extent more loans in order to
support economic development in a period of economic bust. At the upper
limit of LDR, a requirement of higher RR and/or capital can also provide
disincentive to slow down its investment activities in an economic booming
period and manage liquidity risk better.
Journal: Applied Economics
Pages: 24-34
Issue: 1
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073840
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073840
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Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:24-34
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Drescher
Author-X-Name-First: Christian
Author-X-Name-Last: Drescher
Author-Name: Bernhard Herz
Author-X-Name-First: Bernhard
Author-X-Name-Last: Herz
Title: What determines simultaneous asset bubbles? An empirical analysis
Abstract:
The recent global financial crisis demonstrated that the simultaneous
collapse of asset bubbles in different countries is a major challenge for
monetary policy. In order to evaluate determinants of these simultaneous
asset bubbles, we detect rational asset bubbles in corporate equity and
real estate markets worldwide using forward recursive right-sided ADF
tests. Then we create dummy variables for simultaneous asset bubbles and
analyse potential determinants using gravity models and spatial economics.
Our empirical analysis suggests that simultaneous asset bubbles depend
positively upon potential asset demand, capital account openness, monetary
conditions, cultural similarities and negatively upon informational
frictions and exchange rate flexibility. These findings imply that
monetary policy can impede the probability of simultaneous asset bubbles
by ensuring sound monetary conditions and choosing a flexible exchange
regime.
Journal: Applied Economics
Pages: 35-51
Issue: 1
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073841
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073841
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Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:35-51
Template-Type: ReDIF-Article 1.0
Author-Name: Per-Olof Bjuggren
Author-X-Name-First: Per-Olof
Author-X-Name-Last: Bjuggren
Title: Marginal q revisited
Abstract:
Two measures of firm investment behaviour used in the empirical research
are Tobin´s q (average q) and marginal q. The marginal q is a more
recently introduced measure than Tobin´s q and is not as well known.
This article aims to demonstrate the advantages of using marginal q as a
performance measure and is a response to an earlier critical article
(Berglund, 2011) claiming an elusiveness bias. The pro arguments made in
response are that the claimed elusiveness is not a problem. Furthermore,
many of the evaluation problems inherent in the empirical use of
Tobin´s q, like estimation of replacement cost of assets, can be
avoided. From a pure theoretical standpoint, it has long been recognized
that marginal q is superior to an average measure of investment behaviour
such as Tobin´s q.
Journal: Applied Economics
Pages: 52-58
Issue: 1
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073842
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073842
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Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:52-58
Template-Type: ReDIF-Article 1.0
Author-Name: P. Withey
Author-X-Name-First: P.
Author-X-Name-Last: Withey
Author-Name: Lantz
Author-X-Name-First:
Author-X-Name-Last: Lantz
Author-Name: Ochuodho
Author-X-Name-First:
Author-X-Name-Last: Ochuodho
Title: Economic costs and impacts of climate-induced sea-level rise and storm surge in Canadian coastal provinces: a CGE approach
Abstract:
We estimated the economic costs and impacts of future sea-level rise (SLR)
and storm surge due to climate change in Canada's coastal provinces using
regional, dynamic computable general equilibrium models that track
provincial welfare, GDP, trade, prices and inputs over the 2009-2054
period. We also assessed the economic costs of coastal adaptation
investments, to determine whether such investments can be justified on
economic grounds. Results indicated that SLR and storm surge could cost
Canada in the range of $4.6-$25.5 billion in present value welfare, and
between $53.7 and $108.7 billion in present value GDP. We found
significant variation in costs and impacts across coastal provinces, with
some provinces such as Newfoundland and Labrador experiencing only
marginal costs/impacts, and others such as British Columbia experiencing
costs as high as $21 billion in welfare over the period. Coastal
adaptation investments were supported on economics grounds. Overall, this
study provides the first (and preliminary) provincial economic impact
estimates of climate-induced SLR and storm surge, as well as adaptation
investments, in Canada. Additional research is needed to refine the
analysis in order to produce reliable estimates that can be used to guide
coastal adaptation policies in Canada.
Journal: Applied Economics
Pages: 59-71
Issue: 1
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073843
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073843
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Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:59-71
Template-Type: ReDIF-Article 1.0
Author-Name: K. Nithin
Author-X-Name-First: K.
Author-X-Name-Last: Nithin
Author-Name: Rathin Roy
Author-X-Name-First: Rathin
Author-X-Name-Last: Roy
Title: Finance commission of India's assessments: a political economy contention between expectations and outcomes
Abstract:
We explore the normative fiscal assessments of the Finance Commission (FC)
of India, and realisation of fiscal policy with regard to Central Finances
over the period 1990-2012. We employ the Theil's inequality coefficient to
investigate the magnitude of assessment errors and its partitioning in to
bias, slope and random components. Furthermore, this article also
evaluates the efficiency, biasedness and persistence of forecast errors.
The robustness of the efficiency results are confirmed with the
application of maximum entropy bootstrap. The objective of this study is
to examine the structural basis on which FCs make their awards rather than
examining the predictability of the forecasts. The story of FC's
assessments reflects an interesting political economy theatre of
contention between aspirations and outcomes. Our key findings are as
follows: First, source of errors for assessments of tax revenue, nontax
revenue, interest payments, defence revenue expenditure, plan revenue
expenditure and fiscal deficit is principally due to random component.
However, the errors in the remaining economic parameters originate due to
systematic components i.e. mean and slope errors. Second, the expenditure
side predictability is lower than the revenue side predictability.
Journal: Applied Economics
Pages: 73-88
Issue: 2
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073844
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073844
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Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:73-88
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Law
Author-X-Name-First: Philip
Author-X-Name-Last: Law
Author-Name: Desmond Yuen
Author-X-Name-First: Desmond
Author-X-Name-Last: Yuen
Title: Professional scepticism in two economies with cultural differences and the public interest: evidence from China and the United States
Abstract:
Auditors' professional scepticism is a topical concern for the audit
profession and public interest. This study examines professional
scepticism among fraud auditors in the forensic accounting profession in
China (CN) and the United States (US). Data are collected from 373 and 401
CN and US auditors, respectively, in two economies with cultural
differences. The multinomial logistic regression results indicate that
both CN and US fraud auditors have higher levels of professional
scepticism than general auditors do. There are no significant differences
in traits between CN and US fraud auditors. High-ranking fraud auditors
have higher levels of professional scepticism than junior-ranking fraud
auditors for both CN and US auditors. The results of our sensitivity
analysis validate the main results and indicate the findings' robustness.
Results support the normative pillar of the institutional theory (Scott
1995) that asserts actors (fraud auditors) of institutions would share
common norms and beliefs in a social system because they are rooted in
professional affiliations (accounting bodies) (DiMaggio and Powell 1983).
Our findings contribute to the literature in the arena of the interests of
the public and the economy.
Journal: Applied Economics
Pages: 89-106
Issue: 2
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073845
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073845
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Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:89-106
Template-Type: ReDIF-Article 1.0
Author-Name: M Niaz Asadullah
Author-X-Name-First: M Niaz
Author-X-Name-Last: Asadullah
Author-Name: Jinnat Ara
Author-X-Name-First: Jinnat
Author-X-Name-Last: Ara
Title: Evaluating the long-run impact of an innovative anti-poverty programme: evidence using household panel data
Abstract:
Using a four-round panel data set from the first phase of the Challenging
the Frontiers of Poverty Reduction - Targeting the Ultra Poor (CFPR - TUP)
programme of BRAC, we investigate whether a one-off transfer of livestock
assets improves well-being of the very poor women in Bangladesh. Programme
impact is assessed on a wide range of monetary and nonmonetary measures of
well-being using difference-in-difference (DD) as well as matching
methods. We find significant positive long-term impact on food security,
household savings, assets and participation in microfinance. Participant
women are less likely to be in distress occupation and more into
self-employment. However, the long-term effect is much smaller for most
outcomes when compared to short- and medium-run impacts. We conclude by
discussing the significance of the institutional and regional context for
the observed time path of estimated programme effect.
Journal: Applied Economics
Pages: 107-120
Issue: 2
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073846
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073846
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:107-120
Template-Type: ReDIF-Article 1.0
Author-Name: Sascha Kolaric
Author-X-Name-First: Sascha
Author-X-Name-Last: Kolaric
Author-Name: Florian Kiesel
Author-X-Name-First: Florian
Author-X-Name-Last: Kiesel
Author-Name: Dirk Schiereck
Author-X-Name-First: Dirk
Author-X-Name-Last: Schiereck
Title: Return patterns of South Korean stocks following large price shocks
Abstract:
This study tests the market efficiency of the South Korean stock market by
examining returns on stocks of the constituents of the KOSPI 50 from 2000
to 2014 following large 1-month price decreases and increases. An
exponential GARCH (EGARCH) event study framework is used to analyse the
stock returns. The results show that large price shocks, positive and
negative, are likely to be followed by positive market returns. Moreover,
the results show an increase in the beta of stocks in the years following
a large price shock. The overall results therefore support the Uncertain
Information Hypothesis. However, beginning in 2008, return patterns more
closely reflect those hypothesised by the Efficient Market Hypothesis,
possibly due to increased participation by international investors. The
observed returns following large price increases and decreases can be
partially explained by changes in the Korean won to US dollar exchange
rate and the trading behaviour of foreign investors.
Journal: Applied Economics
Pages: 121-132
Issue: 2
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076144
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076144
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Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:121-132
Template-Type: ReDIF-Article 1.0
Author-Name: Lynch
Author-X-Name-First:
Author-X-Name-Last: Lynch
Author-Name: John Curtis
Author-X-Name-First: John
Author-X-Name-Last: Curtis
Title: The effects of wind generation capacity on electricity prices and generation costs: a Monte Carlo analysis
Abstract:
We use Monte Carlo analysis to examine the potential of increased
renewable generation to provide a hedge against variability in energy
prices and costs. Fuel costs, electricity demand and wind generation are
allowed to vary and a unit commitment and economic dispatch algorithm is
employed to produce cost-minimizing generation schedules under different
levels of installed wind capacity. Increased wind capacity reduces the
mean and the variance of production costs but only the variance of
electricity prices. Wind generators see their market revenues increase
while consumer payments and fossil generator profits do not considerably
vary as wind capacity increases. Risk aversion is captured by considering
the conditional value-at-risk for both consumers and producers. The
optimal level of wind generation increases as risk aversion increases due
to the potential of wind to act as a hedge against very high electricity
prices in high fuel price scenarios.
Journal: Applied Economics
Pages: 133-151
Issue: 2
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076145
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076145
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Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:133-151
Template-Type: ReDIF-Article 1.0
Author-Name: Azhar Mohamad
Author-X-Name-First: Azhar
Author-X-Name-Last: Mohamad
Author-Name: Aziz Jaafar
Author-X-Name-First: Aziz
Author-X-Name-Last: Jaafar
Author-Name: John Goddard
Author-X-Name-First: John
Author-X-Name-Last: Goddard
Title: Short selling and exchange-traded funds returns: evidence from the London Stock Exchange
Abstract:
An exchange-traded fund (ETF) is a security that tracks a basket of
stocks. An ETF investor gains immediate exposure to the basket, by taking
either a long or short position on this instrument. Both hedgers and
speculators can short ETFs, making the informational content of increases
in ETF short interest difficult to interpret. Using high-frequency (daily)
short-interest data for ETFs traded on the London Stock Exchange between
June 2006 and April 2010, we examine the price impact on ETFs of increases
in short interest. Contrary to most of the previous empirical evidence for
individual stocks, we find that large increases in ETF short interest are
associated with subsequent over-performance relative to a benchmark index
and this pattern is most pronounced during pre-financial crisis period.
Journal: Applied Economics
Pages: 152-164
Issue: 2
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076146
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076146
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Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:152-164
Template-Type: ReDIF-Article 1.0
Author-Name: L. Kermiche
Author-X-Name-First: L.
Author-X-Name-Last: Kermiche
Author-Name: N. Vuillermet
Author-X-Name-First: N.
Author-X-Name-Last: Vuillermet
Title: Weather derivatives structuring and pricing: a sustainable agricultural approach in Africa
Abstract:
The objective of this article is to calculate the price of weather
derivatives for different African countries with payout depending on
temperature. A new approach for computing degree day contracts is shown
and gives another scale to the numerical relevance and practical
implementation of the findings. With historical data for each country, a
stochastic process based on continuous time with mean reversion
representing the evolution of the temperature is determined. Focusing on
the Monte Carlo simulation method, the price of each contract and the
potential implications to solve several aspects of the threatened African
economy are presented.
Journal: Applied Economics
Pages: 165-177
Issue: 2
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076147
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076147
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Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:165-177
Template-Type: ReDIF-Article 1.0
Author-Name: Minhua Yang
Author-X-Name-First: Minhua
Author-X-Name-Last: Yang
Author-Name: Hui Zhu
Author-X-Name-First: Hui
Author-X-Name-Last: Zhu
Title: Corrigendum
Journal: Applied Economics
Pages: 178-178
Issue: 2
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1073877
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1073877
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Handle: RePEc:taf:applec:v:48:y:2016:i:2:p:178-178
Template-Type: ReDIF-Article 1.0
Author-Name: Koichi Yamaura
Author-X-Name-First: Koichi
Author-X-Name-Last: Yamaura
Author-Name: Allen M. Featherstone
Author-X-Name-First: Allen M.
Author-X-Name-Last: Featherstone
Title: Estimating the effect of monopsony power on elasticity estimates
Abstract:
Love and Shumway (1994) developed a nonparametric deterministic test for
monopsony market power using a normalized quadratic restricted cost
function with one input for which the firm has potential market power.
This research examines monopsony power using Lau's Hessian identity
relationships based on the empirical properties of duality theory. Lau's
Hessian identity shows the Hessian matrices are equal under pure
competition using an unrestricted profit function, restricted profit
function and production function approach. We examine how market power
changes in the monopsony case using Lau's Hessian identity relationships.
Results show that there is a difference between the unrestricted and
restricted profit function results under monopsony power. The important
implication is that if an input or output is potentially in a market
subject to market power, that input or output should be modelled as a
fixed input or output to correctly recover the underlying technology.
Journal: Applied Economics
Pages: 179-189
Issue: 3
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076148
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076148
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Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:179-189
Template-Type: ReDIF-Article 1.0
Author-Name: Cassandra R. Cole
Author-X-Name-First: Cassandra R.
Author-X-Name-Last: Cole
Author-Name: J. Bradley Karl
Author-X-Name-First: J. Bradley
Author-X-Name-Last: Karl
Title: The effect of product diversification strategies on the performance of health insurance conglomerates
Abstract:
The conglomerate organizational structure of health insurers suggests two
distinct methods of product diversification - the first is firm-level
diversification, or diversification within individual affiliates, and the
second is conglomerate-level diversification, or diversification across
affiliates of the conglomerate. We hypothesize that using both firm- and
conglomerate-level diversification may magnify the costs or benefits of
diversification on the financial performance of the conglomerate. Our
results confirm this hypothesis and suggest a positive relation between
health insurer financial performance and the use of both product line
diversification methods. Our results not only contribute to the body of
literature related to corporate diversification but are also important to
policymakers and all health insurance market participants as portions of
the Affordable Care Act continue to be implemented.
Journal: Applied Economics
Pages: 190-202
Issue: 3
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076149
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076149
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Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:190-202
Template-Type: ReDIF-Article 1.0
Author-Name: Jørgen Laake
Author-X-Name-First: Jørgen
Author-X-Name-Last: Laake
Author-Name: Abraham Zhang
Author-X-Name-First: Abraham
Author-X-Name-Last: Zhang
Title: Joint optimization of strategic fleet planning and contract analysis in tramp shipping
Abstract:
Maritime transportation is one of the most capital-intensive industries.
Fleet planning is vital but challenging to shipowners because the industry
is extremely volatile. Relatively few papers have studied strategic fleet
planning in tramp shipping, which is intertwined with contract analysis
and different from that in industrial or liner shipping. This article
develops a mixed-integer programming model, and it is the first of its
kind that jointly optimizes strategic fleet planning and the selections of
long-term and spot contracts in tramp shipping. The model can be used to
determine the best mix of long-term and spot contracts for a given fleet
and/or to find the optimal fleet size and mix for a set of contracts. It
can be used as a basis for a fleet renewal programme, informing decisions
on when to sell, whether to buy old or new ships, and when to charter in
or out vessels. A numerical example is given to illustrate how to use the
model to evaluate different operations strategies.
Journal: Applied Economics
Pages: 203-211
Issue: 3
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076151
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076151
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Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:203-211
Template-Type: ReDIF-Article 1.0
Author-Name: Liang Song
Author-X-Name-First: Liang
Author-X-Name-Last: Song
Author-Name: Harry M. Kaiser
Author-X-Name-First: Harry M.
Author-X-Name-Last: Kaiser
Title: An economic evaluation of market development programmes for US dairy products
Abstract:
'This study measured the effectiveness of US dairy export promotion
programmes on increasing foreign demand and enhancing producers' revenues.
An import demand equation based on panel data was used to test whether
export promotion has a positive and significant impact on US dairy
exports. The effects of various promotion scenarios on the dairy market
were then simulated, and benefit-cost ratios (BCRs) for these programmes
were estimated. There were three key findings. First, the combined effort
of public and private dairy export promotion expenditures had a positive
and statistically significant impact on demand for US dairy products in
the world market. The findings indicated that export promotion stimulated
total dairy exports by 4.14 billion pounds, on average, per year, which
represented 55.8% of total exports. Second, US dairy export promotion has
been highly profitable for the nation's dairy farmers. The calculated
BCRs, based on assumed elasticity of supply, ranged from a low of 8.54 for
the most elastic assumption to a high of 30.12. Third, from an optimality
standpoint, dairy farmers are underinvesting in export promotion. The
marginal BCRs ranged from a low of 3.79 to a high of 15.22, which means
that, at the margin, increasing export promotion expenditures would be
profitable for dairy farmers.
Journal: Applied Economics
Pages: 212-221
Issue: 3
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076152
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076152
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Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:212-221
Template-Type: ReDIF-Article 1.0
Author-Name: H. Sato
Author-X-Name-First: H.
Author-X-Name-Last: Sato
Title: Favouritism towards the poor and a discontinuous tax structure
Abstract:
This article aims to theoretically clarify two points. First, even though
the government shows favouritism to the poor and wants to exempt
low-income taxpayers and to secure the necessary income tax revenue by
taxing only high-income taxpayers, the government nevertheless ends up
taxing the poor. This is in opposition to favouritism and arises because
of the government's inability to observe the individual taxpayer's income
levels. Second, even without observing each taxpayer's income level, if
favouritism is sufficiently strong, then the government can
discontinuously resolve such unintentional taxation.
Journal: Applied Economics
Pages: 222-226
Issue: 3
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076153
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076153
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Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:222-226
Template-Type: ReDIF-Article 1.0
Author-Name: Aviral K. Tiwari
Author-X-Name-First: Aviral K.
Author-X-Name-Last: Tiwari
Author-Name: Claudiu T. Albulescu
Author-X-Name-First: Claudiu T.
Author-X-Name-Last: Albulescu
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Time-frequency relationship between US output with commodity and asset prices
Abstract:
Commodity and asset prices have a well-documented effect on economic
growth as manifested through various channels. At the same time, the
business cycle influences the commodity and asset prices. Whereas
empirical evidence on the effect of commodity and asset prices on the
long-run economic growth is ambiguous, most of the previous researches
highlight a positive correlation in the short run. The aim of this article
is to disentangle the short- and long-run co-movements between US
historical business cycles and commodity and asset prices over the period
1859-2013. For this purpose, we use a time-frequency approach and we test
the historical influence of oil, gold, housing and stock prices over the
output growth. In contrast to other studies, we control for the effect of
other prices and monetary conditions, using the wavelet partial coherency.
In line with the previous works, we discover that co-movements between
economic growth and commodity and assets prices manifest especially in the
short run. We also find that stock returns and housing prices have a more
powerful effect on the US economic growth rate than the oil and gold
prices. The long-run co-movements are documented especially around the
World War II. Finally, when controlling for the influence of the interest
rate, inflation and other commodity and asset prices, co-movements become
weaker in the short run. In general, the oil and housing prices lead the
GDP growth, the US output leads the gold prices, while there is no clear
causality direction between business cycle and stock prices.
Journal: Applied Economics
Pages: 227-242
Issue: 3
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1076154
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1076154
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Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:227-242
Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Casalin
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Casalin
Author-Name: Enzo Dia
Author-X-Name-First: Enzo
Author-X-Name-Last: Dia
Title: The dynamic interrelation between external finance and bank credit
Abstract:
This article studies the interrelation among the volumes of bonds and
stocks issued by non-financial firms, and levels of industrial loans
outstanding in the United States. These aggregates are co-integrated and
characterized by asymmetric volatility. Their co-movements are driven by
financial indicators such as the yield spread, size of loan market and
market volatility. Bond and stock issuance are positively correlated, and
even more so during the expansionary phase of the cycle. Loans outstanding
and bond issuance are negatively correlated, and their substitutability
increases in periods of economic downturn, highlighting the importance of
bond markets to mitigate credit crunches.
Journal: Applied Economics
Pages: 243-259
Issue: 3
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078442
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078442
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:3:p:243-259
Template-Type: ReDIF-Article 1.0
Author-Name: H. Arthur Luo
Author-X-Name-First: H. Arthur
Author-X-Name-Last: Luo
Author-Name: Jen-Chi Cheng
Author-X-Name-First: Jen-Chi
Author-X-Name-Last: Cheng
Author-Name: Chu-Ping C. Vijverberg
Author-X-Name-First: Chu-Ping C.
Author-X-Name-Last: Vijverberg
Title: Monetary shocks, equity returns and volatility: a firm-level panel data analysis
Abstract:
This article studies the impact of monetary policy shocks on equity
returns and their volatility among nine industries and their affiliated
firms in the United States. We use an extension of the traditional CAPM as
the analytical framework and approximate policy shocks with the unexpected
component of the federal funds rate. Data on the characteristics of firms
and industries are obtained from Compustat and the Center for Research in
Security Prices, covering a sample period from 1987 to 2009. Our results
clearly show that responses to policy shocks vary by industry and across
firms. Furthermore, credit availability matters in certain industries, and
small, financially constrained, and bank-dependent firms are found to be
more vulnerable to unexpected federal funds rate shocks.
Journal: Applied Economics
Pages: 261-275
Issue: 4
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078443
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078443
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Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:261-275
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Khang
Author-X-Name-First: Kenneth
Author-X-Name-Last: Khang
Author-Name: Tao-Hsien Dolly King
Author-X-Name-First: Tao-Hsien Dolly
Author-X-Name-Last: King
Author-Name: Hung Nguyen
Author-X-Name-First: Hung
Author-X-Name-Last: Nguyen
Title: What determines outstanding corporate debt mix? Evidence from fractional multinomial logit estimation
Abstract:
This study employs the fractional multinomial logit setting proposed by
Papke and Wooldridge (1996) to examine factors driving the choice among
nonbank private (144A) debt, bank loans and public debt made by 988
nonfinancial firms during 1993-2007. We document that the majority of
firm-level factors have persistent effects on corporate outstanding debt
mix across economic conditions. We also highlight the importance of
macroeconomic variables on firms' borrowing decisions as predicted by
Diamond (1991). Finally, we document a substitution effect among debt
financing sources due to credit rating downgrades, which is inconsistent
with Rauh and Sufi (2010).
Journal: Applied Economics
Pages: 276-291
Issue: 4
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078445
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078445
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Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:276-291
Template-Type: ReDIF-Article 1.0
Author-Name: Duane W. Rockerbie
Author-X-Name-First: Duane W.
Author-X-Name-Last: Rockerbie
Title: Fighting as a profit maximizing strategy in the National Hockey League: more evidence
Abstract:
This article estimates the effect of fighting in hockey games on
attendance in the National Hockey League (NHL) over the 1997-1998 through
2009-2010 seasons. After estimating a system of equations developed from a
model of a profit-maximizing club owner, it was found that fighting had a
small negative effect on attendance implying that encouraging fighting on
the ice is not a profit-maximizing strategy. The results are quite robust
when incorporating capacity constraints on attendance and exogenous ticket
pricing. Other factors that determine club performance and market size
were found to significantly affect attendance. The empirical results also
suggest that NHL club owners are maximizing profit.
Journal: Applied Economics
Pages: 292-299
Issue: 4
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078446
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078446
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:292-299
Template-Type: ReDIF-Article 1.0
Author-Name: Beatriz Cu鬬ar-Fernᮤez
Author-X-Name-First: Beatriz
Author-X-Name-Last: Cu鬬ar-Fernᮤez
Author-Name: Yolanda Fuertes-Call鮠
Author-X-Name-First: Yolanda
Author-X-Name-Last: Fuertes-Call鮠
Author-Name: Carlos Serrano-Cinca
Author-X-Name-First: Carlos
Author-X-Name-Last: Serrano-Cinca
Author-Name: Begouti鲲ez-Nieto
Author-X-Name-First: Bego
Author-X-Name-Last: Guti鲲ez-Nieto
Title: Determinants of margin in microfinance institutions
Abstract:
Microfinance institutions (MFIs) lend to the poor. However, microfinance
clients suffer from high interest rates, a type of poverty penalty. This
article analyses the margin determinants in MFIs. A banking model has been
adapted to microfinance. This model has been tested using 9-year panel
data. Some factors explaining bank margin also explain MFI margin, with
operating costs being the most important factor. Specific microfinance
factors are donations and legal status, as regulated MFIs can collect
deposits. It has also been found that MFIs operating in countries with a
high level of financial inclusion have low margins.
Journal: Applied Economics
Pages: 300-311
Issue: 4
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078447
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078447
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:300-311
Template-Type: ReDIF-Article 1.0
Author-Name: Harry M. Kaiser
Author-X-Name-First: Harry M.
Author-X-Name-Last: Kaiser
Title: An economic analysis of the Cattlemen's Beef Promotion and Research Board demand-enhancing programmes
Abstract:
The research reported here addressed two objectives. The first objective
was to measure the overall impact of the Cattlemen's Beef Board as well as
eight-specific advertising, promotion and research activities on US beef
demand. The second objective was to compute marginal benefit-cost ratios
(BCRs) for the eight individual checkoff activities and for the overall
programme. The results indicated that Cattlemen's Beef Board's Promotion
activities increased total domestic beef demand by 15.7 billion pounds in
total, or 2.1 billion pounds per year between 2006 and 2014. Collectively,
the overall marginal BCR for all Cattlemen's Beef Board activities was
$11.20.
Journal: Applied Economics
Pages: 312-320
Issue: 4
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078448
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078448
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Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:312-320
Template-Type: ReDIF-Article 1.0
Author-Name: Tobias Hiller
Author-X-Name-First: Tobias
Author-X-Name-Last: Hiller
Title: Excluded coalitions and the distribution of power in parliaments
Abstract:
In this article, we introduce a new value for cooperative games. This
value is based on the Shapley (1953) value and takes into account that
players exclude coalitions with other players. One example of such
exclusions are the coalition statements of parliamentary parties. A case
study demonstrates the application of the new value for these situations.
Journal: Applied Economics
Pages: 321-330
Issue: 4
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078449
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078449
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Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:321-330
Template-Type: ReDIF-Article 1.0
Author-Name: Rudra P. Pradhan
Author-X-Name-First: Rudra P.
Author-X-Name-Last: Pradhan
Author-Name: Mak B. Arvin
Author-X-Name-First: Mak B.
Author-X-Name-Last: Arvin
Author-Name: Neville R. Norman
Author-X-Name-First: Neville R.
Author-X-Name-Last: Norman
Author-Name: Sara E. Bennett
Author-X-Name-First: Sara E.
Author-X-Name-Last: Bennett
Title: Financial depth, internet penetration rates and economic growth: country-panel evidence
Abstract:
The article investigates causal relationships between internet penetration
rates, financial depth and per capita economic growth in the Next-11
countries. Using panel vector autoregressive (VAR) approaches, our
empirical results show that these variables are cointegrated. Moreover, we
find bidirectional causality between internet penetration rates and
economic growth, and between financial depth and economic growth in the
short run.
Journal: Applied Economics
Pages: 331-343
Issue: 4
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078450
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078450
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:4:p:331-343
Template-Type: ReDIF-Article 1.0
Author-Name: Faik Bilgili
Author-X-Name-First: Faik
Author-X-Name-Last: Bilgili
Author-Name: Nadide S. Tülüce
Author-X-Name-First: Nadide S.
Author-X-Name-Last: Tülüce
Author-Name: Ibrahim Doğan
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Doğan
Author-Name: H. Hilal Bağlıtas
Author-X-Name-First: H. Hilal
Author-X-Name-Last: Bağlıtas
Title: The causality between FDI and sector-specific production in Turkey: evidence from threshold cointegration with regime shifts
Abstract:
This article considers bidirectional nonlinear cointegration relation
between FDI and industrial output in Turkey. The data cover the monthly
period 2005:1-2013:10 for the time series of total industrial production,
36 sub-industrial sectors' production and FDI. Following nonlinear
threshold cointegration and VECMs, the article yields that (i) total
industrial production and nine sub-industrial productions have positive
long-run impact on FDI with significant error corrections, (ii) six
sub-industrial productions have short-term influence on FDI, (iii) FDI has
long-run positive impulse on total industrial production and nine
sub-industrial productions with some significant error corrections and
(iv) FDI affects four sub-industrial productions in the short run as well
as in the long run. The results of VECMs from (i) also reveal that the all
short-term adjustment parameters are found significant and powerful in 10
typical regimes (Regime-1s) and in 5 extreme regimes (Regime-2s). Finally,
the outcome of VECMs from (iii) yields that short-term adjustment
parameters are found significant and powerful in two typical regimes and
in four extreme regimes. Eventually, considering FDI's positive impact in
the short and long run, this article suggests that policymakers promote
specifically the FDI inflows to the sectors of intermediate goods,
manufacture of beverages, manufacture of rubber and plastic and
manufacture of other nonmetallic mineral products.
Journal: Applied Economics
Pages: 345-360
Issue: 5
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1078451
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078451
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Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:345-360
Template-Type: ReDIF-Article 1.0
Author-Name: Marie Bessec
Author-X-Name-First: Marie
Author-X-Name-Last: Bessec
Author-Name: Julien Fouquau
Author-X-Name-First: Julien
Author-X-Name-Last: Fouquau
Author-Name: Sophie Meritet
Author-X-Name-First: Sophie
Author-X-Name-Last: Meritet
Title: Forecasting electricity spot prices using time-series models with a double temporal segmentation
Abstract:
The French wholesale market is set to expand in the next few years under
European pressure and national decisions. In this article, we assess the
forecasting ability of several classes of time-series models for
electricity wholesale spot prices at a day-ahead horizon in France.
Electricity spot prices display a strong seasonal pattern, particularly in
France, given the high share of electric heating in housing during winter
time. To deal with this pattern, we implement a double temporal
segmentation of the data. For each trading period and season, we use a
large number of specifications based on market fundamentals: linear
regressions, Markov-switching (MS) models and threshold models with a
smooth transition. An extensive evaluation on French data shows that
modelling each season independently leads to better results. Among
nonlinear models, MS models designed to capture the sudden and
fast-reverting spikes in the price dynamics yield more accurate forecasts.
Finally, pooling forecasts give more reliable results.
Journal: Applied Economics
Pages: 361-378
Issue: 5
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1080801
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080801
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Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:361-378
Template-Type: ReDIF-Article 1.0
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Wang Man
Author-X-Name-First: Wang
Author-X-Name-Last: Man
Author-Name: Muhammad Azeem Qureshi
Author-X-Name-First: Muhammad Azeem
Author-X-Name-Last: Qureshi
Title: Mean reverting financial leverage: theory and evidence from Pakistan
Abstract:
Grounding concepts of the two competing theories of capital structure
(trade-off theory, pecking order theory) are quite opposite to each other.
Trade-off theory claims that there is an optimal (target) capital
structure and firms try to achieve that optimal (target) point. Whereas
pecking order theory argues that there is no optimal (target) capital
structure but the firms follow a specific pattern of financing. Using the
two competing theoretic frameworks, this study applies Fisher-type panel
unit root test to an unbalanced panel data of 13 115 firm-year
observations of nonfinancial firms listed on Karachi Stock Exchange
Pakistan spread over 38 years (1973-2010). Overall panel test
results, for short-term, long-term, as well as total leverage support
trade-off financing behaviour while individual firm results do not.
Individual firm results show that only 16% of the firms have short-term
target, 25% of the firms have long-term target and 12% of the firms have
total target leverage ratio. Further, industry results explain that most
of the industries do have target leverage ratios and classification of
data into profitable and lossmaking firm-year observations explains that
profitable firms clearly follow trade-off financing behaviour while the
results for lossmaking firms do not support trade-off financing behaviour.
Our study indicates that it is important for the government to ensure
policies to develop well-balanced financial markets and to improve
accountability systems.
Journal: Applied Economics
Pages: 379-388
Issue: 5
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1080802
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080802
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Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:379-388
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Meyer
Author-X-Name-First: Andrew
Author-X-Name-Last: Meyer
Author-Name: Guanyi Yang
Author-X-Name-First: Guanyi
Author-X-Name-Last: Yang
Title: How much versus who: which social norms information is more effective?
Abstract:
We conduct an experiment to investigate how different types of information
about social norms affect individuals' stated contributions to a specific
pro-environment program, a student 'green fee', in the context of a
referendum. Compared to students that receive no information about peer
contributions, on average, students that receive information about the
dollar value range of contributions at peer institutions contribute less
while students that learn about the high percentage of students voting
'yes' on green fee programs at peer institutions contribute more. The
results are economically significant as the absolute values of both
effects represent approximately 25% of average contributions. These
results suggest that information about participation rates can be more
effective than information about dollar amounts in encouraging
contributions to environmental initiatives. Of interest to stated
preference researchers, we find that results do not change when
controlling for self-selection into survey completion.
Journal: Applied Economics
Pages: 389-401
Issue: 5
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1080803
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080803
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Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:389-401
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Sultan Bin-Sariman
Author-X-Name-First: Ahmed Sultan
Author-X-Name-Last: Bin-Sariman
Author-Name: Azwadi Ali
Author-X-Name-First: Azwadi
Author-X-Name-Last: Ali
Author-Name: Mohd Nazli Mohd Nor
Author-X-Name-First: Mohd Nazli Mohd
Author-X-Name-Last: Nor
Title: Board of directors' quality and firms' debt financing: the moderating effect of insider ownership - evidence from Omani firms
Abstract:
This study aims to examine the direct effects of board of directors'
quality and insider ownership on firms' capital structure and the
moderating effect of insider ownership on the relationship between board
of directors' quality and firms' capital structure. The sample of this
study consists of the time period 2005-2011. The final sample consists of
535 firm-year observations of public nonfinancial firms listed on the
Muscat Securities Market (MSM). The hypotheses are tested using a random
effects model. The results reveal that the coefficient sign on the board
of directors' quality is as predicted, but the coefficient sign is
insignificant. Further, the results show that insider ownership is
positively associated with leverage at the significant level of 10%,
suggesting that the inside substantial shareholders employ higher
leverage. With regard to the moderating effect of insider ownership, the
findings show that the effect of the board of directors' quality-leverage
relationship becomes negative and stronger with increasing insider
ownership.
Journal: Applied Economics
Pages: 402-410
Issue: 5
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1080804
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1080804
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Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:402-410
Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Congregado
Author-X-Name-First: Emilio
Author-X-Name-Last: Congregado
Author-Name: Jesús Iglesias
Author-X-Name-First: Jesús
Author-X-Name-Last: Iglesias
Author-Name: Jos頍ar𨁍illᮠ
Author-X-Name-First: Jos頍ar𨀍
Author-X-Name-Last: Millᮠ
Author-Name: Concepciomᮠ
Author-X-Name-First: Concepci
Author-X-Name-Last: Romᮠ
Title: Incidence, effects, dynamics and routes out of overqualification in Europe: a comprehensive analysis distinguishing by employment status
Abstract:
This study aims to improve our understanding of overqualification by
incorporating distinctions in employment status (i.e. self-employed
workers, private employees and public employees) in the analysis of the
incidence, effects, dynamics and routes out of overqualification. To this
end, we apply discrete choice - ordered and nonordered - and count models
to the data obtained from the European Community Household
Panel for the EU-15. Our results indicate that the incidence of
overqualification varies by employment status, where self-employed workers
report the lowest occurrence. Furthermore, this analysis suggests that
overqualification is a permanent phenomenon and demonstrates that
successful pathways out of overqualification differ by employment status.
The implications of these results for education and labour market policies
are also discussed.
Journal: Applied Economics
Pages: 411-445
Issue: 5
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1083080
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083080
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Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:411-445
Template-Type: ReDIF-Article 1.0
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: E.A. Selvanathan
Author-X-Name-First: E.A.
Author-X-Name-Last: Selvanathan
Author-Name: Saad Albalawi
Author-X-Name-First: Saad
Author-X-Name-Last: Albalawi
Author-Name: Moazzem Hossain
Author-X-Name-First: Moazzem
Author-X-Name-Last: Hossain
Title: Meat and fish consumption patterns in Saudi Arabia
Abstract:
This study analyses the demand for meat (beef, chicken and lamb) and fish
in Saudi Arabia in a system-wide framework using data for the period
1985-2010. A preliminary data analysis reveals that, in Saudi Arabia, the
relative consumption of beef, chicken and fish has a positive growth,
while lamb has a negative growth. The average relative price growth rates
of beef, chicken and fish are negative, while that of lamb is positive.
The expenditure shares of beef, chicken and fish have increased while that
of lamb has fallen. The estimation results of the demand system reveal
that there is an autonomous trend out of lamb into beef, chicken and fish.
The implied income elasticities indicate that beef, lamb and fish are
considered to be luxuries, while chicken is a necessity. The demand for
all meat products and fish are price inelastic. These elasticities are key
inputs for policy analysts in terms of devising policies in relation to
meat production, meat imports, taxation and food security issues in Saudi
Arabia. The usefulness of the implied elasticities is demonstrated by
simulating the consumption of beef, chicken, lamb and fish under various
policy scenarios.
Journal: Applied Economics
Pages: 446-460
Issue: 5
Volume: 48
Year: 2016
Month: 1
X-DOI: 10.1080/00036846.2015.1083081
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083081
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Handle: RePEc:taf:applec:v:48:y:2016:i:5:p:446-460
Template-Type: ReDIF-Article 1.0
Author-Name: Saeed Ghavidelfar
Author-X-Name-First: Saeed
Author-X-Name-Last: Ghavidelfar
Author-Name: Asaad Y. Shamseldin
Author-X-Name-First: Asaad Y.
Author-X-Name-Last: Shamseldin
Author-Name: Bruce W. Melville
Author-X-Name-First: Bruce W.
Author-X-Name-Last: Melville
Title: Estimation of the effects of price on apartment water demand using cointegration and error correction techniques
Abstract:
Water price is a key instrument in regulating water demand in the
residential sector. Many empirical studies have assessed the effects of
price through quantifying the price elasticity of water demand. However,
most of these studies have mainly focused on the single-family housing
rather the multifamily housing. An in-depth understanding of the price
elasticity of multifamily housing water demand is paramount for water
planners in order to properly manage water use in the fast growing
intensive housing developments in urban areas. This study investigates
both the long-term and short-term price elasticities of water demand in
the residential apartments in Auckland central city. Using 6 years of
monthly time series data, the price elasticities were estimated through
cointegration and error correction methods. The results showed that the
price elasticities of water demand were - 0.14 and - 0.12 in the short
term and the long term, respectively. The price is inelastic yet negative
and statistically significant, thus it can play a role in demand
management.
Journal: Applied Economics
Pages: 461-470
Issue: 6
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083082
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083082
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Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:461-470
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Li
Author-X-Name-First: Yu
Author-X-Name-Last: Li
Author-Name: Peipei Mao
Author-X-Name-First: Peipei
Author-X-Name-Last: Mao
Author-Name: Yanming Zhang
Author-X-Name-First: Yanming
Author-X-Name-Last: Zhang
Title: Empirical research on the different innovation engine between China and US manufacturing using an improved method
Abstract:
Most studies arrive at controversial conclusions about the relationship
between firm size and technological innovation. Industrial differences and
subjective model design are generally considered the primary cause. In
static comparisons across industries, dynamic industrial changes are
ignored, but this might lead to differing results when attempting to
identify the driving forces of evolutionary change in an industrial
environment. This study applies nonparametric regression methods with an
expansive industry grouping to overcome the industry-difference
interference and empirical model error, typifying traditional studies.
First, a comparative analysis of the forces driving US and Chinese
manufacturing is performed. Results indicate that US and Chinese
manufacturing are in different industrial growth stages. Chinese
manufacturing takes the traditional elements and R&D input as its main
driving factors, which require objectively, expansive scale of enterprise,
therefore showing characteristic Schumpeterian innovation. US
manufacturing is driven by both R&D and non-R&D inputs; so it can maintain
continuous innovation through cooperative networks under conditions of
constant or contracting firm size.
Journal: Applied Economics
Pages: 471-482
Issue: 6
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083083
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083083
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Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:471-482
Template-Type: ReDIF-Article 1.0
Author-Name: Callum Jones
Author-X-Name-First: Callum
Author-X-Name-Last: Jones
Author-Name: Mariano Kulish
Author-X-Name-First: Mariano
Author-X-Name-Last: Kulish
Title: A graphical representation of an estimated DSGE model
Abstract:
We write a New Keynesian model as an aggregate demand curve and an
aggregate supply curve, relating inflation to output growth. The graphical
representation shows how structural shocks move aggregate demand and
supply simultaneously. We estimate the curves on US data from 1948 to 2010
and study two recessions: the 2001 recession and the Great Recession of
2008-2009. The Great Recession is explained by a collapse of aggregate
demand driven by adverse preference and permanent technology shocks, and
expectations of low inflation.
Journal: Applied Economics
Pages: 483-489
Issue: 6
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083084
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083084
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Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:483-489
Template-Type: ReDIF-Article 1.0
Author-Name: Winston Moore
Author-X-Name-First: Winston
Author-X-Name-Last: Moore
Author-Name: Adrian Glean
Author-X-Name-First: Adrian
Author-X-Name-Last: Glean
Title: Foreign exchange reserve adequacy and exogenous shocks
Abstract:
One of the traditional benchmarks in international macroeconomics is that
a country should maintain reserves that can cover at least 12 weeks of
imports. The notion of reserve adequacy, however, is not static and is
intimately associated with the occurrence of financial crises as well as
exogenous shocks, with many observers using the reduction in reserves
below this benchmark as a sign of fragility. This article provides a
benefit-cost type approach to evaluating reserve adequacy. The benefits of
holding reserves are evaluated using a dynamic random effects probit model
of financial crises while the cost of reserve holdings (output loss due to
an over-investment in reserves) is obtained from a panel growth equation.
Using the methodology outlined above, the study finds that in small
states, the optimal holding of foreign exchange reserves is approximately
25 weeks of imports, approximately 13 weeks higher than the international
rule-of-thumb. This estimate of optimal reserve holdings is interrelated
with the economic characteristics of the country, particularly its fiscal
stance. Indeed, this article finds that countries with a prudent public
expenditure management framework in place are able to hold a smaller stock
of reserves without necessarily impacting the expected growth for the
country.
Journal: Applied Economics
Pages: 490-501
Issue: 6
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083085
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083085
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Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:490-501
Template-Type: ReDIF-Article 1.0
Author-Name: Prateek Sharma
Author-X-Name-First: Prateek
Author-X-Name-Last: Sharma
Author-Name: Vipul
Author-X-Name-First:
Author-X-Name-Last: Vipul
Title: Economic benefits of using realized covariance forecasts in risk-based portfolios
Abstract:
This article examines the economic benefit of using the realized
covariance matrix forecasts, for constructing the risk-based portfolios.
We use the two-scale realized covariance estimator (TSC), the jump robust
two-scale realized covariance estimator (RTSC) and the realized bipower
covariance estimator (BPC), to forecast the daily realized covariance
matrix. Using these covariance matrix forecasts, we implement three
risk-based portfolios: the global minimum variance portfolio, the equal
risk contribution portfolio and the most diversified portfolio. There is
evidence that the portfolio performance improves by using TSC or RTSC
estimators as compared to the daily-returns-based estimator. The
performance gains are robust to the choice of risk-based portfolio
strategy, the degree of investor's relative risk-aversion, the market
conditions and the choice of time intervals.
Journal: Applied Economics
Pages: 502-516
Issue: 6
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083086
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083086
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Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:502-516
Template-Type: ReDIF-Article 1.0
Author-Name: Marc K. Chan
Author-X-Name-First: Marc K.
Author-X-Name-Last: Chan
Author-Name: Simon S. Kwok
Author-X-Name-First: Simon S.
Author-X-Name-Last: Kwok
Title: Capital account liberalization and dynamic price discovery: evidence from Chinese cross-listed stocks
Abstract:
We analyse the effects of a recent financial reform (Shanghai-Hong Kong
Stock Connect) that enables cross-market investment between Hong Kong and
Shanghai stock exchanges. Using a VECM, we find that the reform
announcement considerably narrows the equilibrium level of price disparity
and strengthens the price comovement of shares that are cross-listed in
both markets. The estimated equilibrium relationship is in support of the
relative law of one price. We find that both markets adjust in response to
a disequilibrium in price disparity, leading to a sizeable error
correction activity. The Shanghai market contributes to approximately
two-thirds of the price discovery process. Competition and informativeness
of trading affect the relative role of price discovery in each market.
Finally, the reform implementation reinforces the long-run cointegration
relationship and strengthens the short-run price comovements of
cross-listed stocks despite the widening price disparity during the
period.
Journal: Applied Economics
Pages: 517-535
Issue: 6
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083087
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083087
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Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:517-535
Template-Type: ReDIF-Article 1.0
Author-Name: Harumi Ohmi
Author-X-Name-First: Harumi
Author-X-Name-Last: Ohmi
Author-Name: Tatsuyoshi Okimoto
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Okimoto
Title: Trends in stock-bond correlations
Abstract:
Previous studies document the existence of long-run trends in comovements
in the stock and bond markets. Following these findings, this article
examines possible trends in stock-bond return correlations. To this end,
we introduce a trend component into a smooth transition regression (STR)
model including the multiple transition variables of Aslanidis and
Christiansen (2012). The results indicate the existence of significant
decreasing trends in stock-bond correlations for many advanced safer
countries. In addition, although stock market volatility continues to be
an important factor in stock-bond correlations, the short rate and yield
spread become only marginally significant once we introduce the trend
component. Our out-of-sample analysis also demonstrates that the STR
model, including the volatility index and time trend as the transition
variables, dominates other models. Furthermore, we find a significant
increase in stock-bond correlations for riskier euro countries around the
beginning of the euro crisis. Our findings of decreasing and increasing
trends in stock-bond correlations can be considered a consequence of the
decreasing effects of diversification and more intensive flight-to-quality
behaviour that have taken place in recent years and after the euro crisis.
Journal: Applied Economics
Pages: 536-552
Issue: 6
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083088
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083088
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Handle: RePEc:taf:applec:v:48:y:2016:i:6:p:536-552
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamad Khattar Awad
Author-X-Name-First: Mohamad Khattar
Author-X-Name-Last: Awad
Author-Name: Bashar Zogheib
Author-X-Name-First: Bashar
Author-X-Name-Last: Zogheib
Author-Name: Hamed M.K. Alazemi
Author-X-Name-First: Hamed M.K.
Author-X-Name-Last: Alazemi
Title: On the optimality of escalating penalties for repeat offences against the academic honour code
Abstract:
Although academic dishonesty has a long history in academia, its
pervasiveness has recently reached an alarming level. Academic dishonesty
not only undermines the purpose of education and the assessment process
but also threatens the creditability of academic records. We propose a
framework for analysing students' behaviour with respect to academic
policies and honour codes. We draw an analogy between law enforcement and
academic integrity enforcement and highlight similarities and differences.
The proposed framework captures major determinants of academic dishonesty
reported in the literature, namely detection probability, punishment
severity, class average and record of academic deviance. The framework
models both students' development of nonacademic skills to improve their
grades and teaching assistants' development of detection skills, which
both affect the detection probability. Our analysis demonstrates that the
optimality of escalating penalties is conditional on the offenders and
academic policy enforcers learning. Use-case scenarios are presented to
facilitate the implementation of our results in classrooms.
Journal: Applied Economics
Pages: 553-562
Issue: 7
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1078444
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1078444
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Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:553-562
Template-Type: ReDIF-Article 1.0
Author-Name: Maria E. de Boyrie
Author-X-Name-First: Maria E.
Author-X-Name-Last: de Boyrie
Author-Name: Ivelina Pavlova
Author-X-Name-First: Ivelina
Author-X-Name-Last: Pavlova
Title: Dynamic interdependence of sovereign credit default swaps in BRICS and MIST countries
Abstract:
This article examines the interactions of emerging markets sovereign
credit default swaps (CDS). Using a generalized vector autoregressive
framework and principal component analysis, we find significant spillover
effects within the two groups of emerging markets under study. Using the
principal component analysis, we show that global financial market factors
are important drivers of BRICS and MIST sovereign CDS spreads variability.
Focusing on the forecast error variance decomposition, most of the
spillover effects are documented among the emerging markets CDS. Brazil
and Mexico contribute the largest net directional spillovers to the other
emerging markets studied.Highlights: There exist significant CDS spillover
effects for MIST and BRICS countries.Mexico
dominates the spillover effects within the MIST group while Brazil
dominates the spillover effects within the BRICS
group.As determined by principal component
analysis, global financial market factors are important drivers of BRICS
and MIST sovereign CDS spreads variability.There
exists a relatively small net directional spillover from global financial
market factors to the countries under study; however, the total spillover
is time-varying.A large proportion of the forecast
error variance in the markets studied comes from
spillovers.
Journal: Applied Economics
Pages: 563-575
Issue: 7
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083089
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083089
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Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:563-575
Template-Type: ReDIF-Article 1.0
Author-Name: Am鬩e Charles
Author-X-Name-First: Am鬩e
Author-X-Name-Last: Charles
Author-Name: Olivier Darn頍
Author-X-Name-First: Olivier
Author-X-Name-Last: Darn頍
Author-Name: Jae H. Kim
Author-X-Name-First: Jae H.
Author-X-Name-Last: Kim
Author-Name: Etienne Redor
Author-X-Name-First: Etienne
Author-X-Name-Last: Redor
Title: Stock exchange mergers and market efficiency
Abstract:
The aim of this article is to examine the impact of stock exchange mergers
on the degree of informational efficiency. For this purpose, we apply the
generalized spectral shape test for the martingale difference hypothesis
to the stock returns before and after the 31 domestic and cross-border
mergers completed from 1997 to 2011. The test is conducted with moving
subsample windows, allowing us to detect the periods of (in)efficiency,
and thus to conduct a comparative analysis for pre-merger and post-merger
periods. We find that higher levels of efficiency are less frequent than
lower levels of efficiency after a stock exchange merger. We also find
that the impact on the level of efficiency depends on a range of merger
characteristics such as the level of development, size, geographical
diversification and industrial diversification of stock exchange.
Journal: Applied Economics
Pages: 576-589
Issue: 7
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083090
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083090
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Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:576-589
Template-Type: ReDIF-Article 1.0
Author-Name: G. C. Montes
Author-X-Name-First: G. C.
Author-X-Name-Last: Montes
Author-Name: L. V. Oliveira
Author-X-Name-First: L. V.
Author-X-Name-Last: Oliveira
Author-Name: A. Curi
Author-X-Name-First: A.
Author-X-Name-Last: Curi
Author-Name: R. T. F. Nicolay
Author-X-Name-First: R. T. F.
Author-X-Name-Last: Nicolay
Title: Effects of transparency, monetary policy signalling and clarity of central bank communication on disagreement about inflation expectations
Abstract:
The literature on transparency and central bank communication and the
literature on disagreement about expectations are evolving; however, both
have been evolving separately. Despite the advances in the literature,
several key issues remain open and there are gaps to be filled. Therefore,
this study analyses the effects of monetary policy signalling and clarity
of central bank communication on disagreement about inflation
expectations. It also investigates whether greater transparency coincides
with lower levels of disagreement in inflation expectations in Brazil. The
findings suggest that transparency is important to reduce disagreement
about inflation expectations. Moreover, our estimates indicate that
central bank communication and clarity affect disagreement about inflation
expectations in Brazil.
Journal: Applied Economics
Pages: 590-607
Issue: 7
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083091
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083091
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Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:590-607
Template-Type: ReDIF-Article 1.0
Author-Name: B. Qushim
Author-X-Name-First: B.
Author-X-Name-Last: Qushim
Author-Name: J. Gillespie
Author-X-Name-First: J.
Author-X-Name-Last: Gillespie
Author-Name: K. Paudel
Author-X-Name-First: K.
Author-X-Name-Last: Paudel
Author-Name: K. Mcmillin
Author-X-Name-First: K.
Author-X-Name-Last: Mcmillin
Title: Technical and scale efficiencies of meat goat farms in the USA
Abstract:
This study determines i) scale and technical efficiencies, ii) marginal
productive contributions for inputs and outputs and iii) efficiency
drivers of meat goat farms in the USA. We estimate an input distance
function (IDF) using a stochastic production frontier (SPF) technique. The
average technical efficiency (TE) for the USA meat goat whole farm was
0.74. The operator education level, percentage of annual net farm income
from the goat operation, regional differences and holding of an off farm
job are the efficiency drivers of USA meat goat farms. We find increasing
returns to scale (RTS) for USA meat goat farms. Our results suggest that
USA meat goat farms can be scale efficient if their optimal size of
operation is greater than approximately 64 goats or greater than 40
breeding does. Empirical Monte Carlo (MC) simulation techniques show the
consistency of finite-sample properties for the input distance function.
Journal: Applied Economics
Pages: 608-620
Issue: 7
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083531
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083531
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Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:608-620
Template-Type: ReDIF-Article 1.0
Author-Name: Mikio Ito
Author-X-Name-First: Mikio
Author-X-Name-Last: Ito
Author-Name: Akihiko Noda
Author-X-Name-First: Akihiko
Author-X-Name-Last: Noda
Author-Name: Tatsuma Wada
Author-X-Name-First: Tatsuma
Author-X-Name-Last: Wada
Title: The evolution of stock market efficiency in the US: a non-Bayesian time-varying model approach
Abstract:
A non-Bayesian time-varying model is developed by introducing the concept
of the degree of market efficiency that varies over time. This model may
be seen as a reflection of the idea that continuous technological progress
alters the trading environment over time. With new methodologies and a new
measure of the degree of market efficiency, we examine whether the US
stock market evolves over time. In particular, a time-varying
autoregressive (TV-AR) model is employed. Our main findings are: (i) the
US stock market has evolved over time and the degree of market efficiency
has cyclical fluctuations with a considerably long periodicity, from 30 to
40 years; and (ii) the US stock market has been efficient with the
exception of four times in our sample period: during the long recession of
1873-1879; the recession of 1902-1904; the New Deal era; and the recession
of 1957-1958 and soon after it. It is then shown that our results are
partly consistent with the view of behavioural finance.
Journal: Applied Economics
Pages: 621-635
Issue: 7
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1083532
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1083532
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Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:621-635
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Wells
Author-X-Name-First: Robert
Author-X-Name-Last: Wells
Author-Name: Roger Ham
Author-X-Name-First: Roger
Author-X-Name-Last: Ham
Author-Name: P. N. (Raja) Junankar
Author-X-Name-First: P. N. (Raja)
Author-X-Name-Last: Junankar
Title: An examination of personality in occupational outcomes: antagonistic managers, careless workers and extraverted salespeople
Abstract:
This article investigates the role of personality in the sorting of
individuals between a number of occupations, allowing for an extensive
array of conditioning variables. The focus is an examination of the
relationship between occupational outcomes and personality using the
'five-factor model'. We estimate a multinomial logit model using a panel
data set from the Household Income and Labour Dynamics in Australia
(HILDA) survey. Human capital variables are found to exhibit strong
credentialism effects and there is evidence for some small dynasty
hysteresis. Personality effects are found to be significant, relatively
large and persistent across all occupations. The personality effects are
strong enough to rival that of various education credentials. These
personality effects include but are not limited to managers being less
agreeable and more antagonistic; labourers being less conscientiousness;
and salespeople being more extraverted.
Journal: Applied Economics
Pages: 636-651
Issue: 7
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085636
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085636
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Handle: RePEc:taf:applec:v:48:y:2016:i:7:p:636-651
Template-Type: ReDIF-Article 1.0
Author-Name: Bijou Yang
Author-X-Name-First: Bijou
Author-X-Name-Last: Yang
Author-Name: David Lester
Author-X-Name-First: David
Author-X-Name-Last: Lester
Title: Personality traits and economic activity
Abstract:
Following Lynn's (1991) studying showing that the scores of undergraduate
students in 43 countries on variables such as work ethic and achievement
motivation predicted per capita income and economic growth rates in those
countries, the present study explored whether the average scores of
residents of the 50 states in the United States were associated with the
gross state product. States whose residents scored higher on openness had
higher gross state products while those whose residents scored higher in
openness and lower on neuroticism had higher gross state products per
capita.
Journal: Applied Economics
Pages: 653-657
Issue: 8
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085638
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085638
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Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:653-657
Template-Type: ReDIF-Article 1.0
Author-Name: Zhuwei Li
Author-X-Name-First: Zhuwei
Author-X-Name-Last: Li
Author-Name: Yucheng Wang
Author-X-Name-First: Yucheng
Author-X-Name-Last: Wang
Author-Name: Lijie Yu
Author-X-Name-First: Lijie
Author-X-Name-Last: Yu
Author-Name: Hui An
Author-X-Name-First: Hui
Author-X-Name-Last: An
Title: Relationship between initiative risk management and firm value: evidence from Chinese financial listed companies
Abstract:
This study considers 189 Chinese financial listed companies between 2009
and 2013 as research samples to establish indicators for evaluating the
initiative risk management behaviour of financial enterprises. This work
further examines the relationship between initiative risk management and
firm value. Results show that financial enterprises could effectively
increase firm value by taking initiative risk management measures, such as
setting up departments or positions that specialize in risk management,
using financial derivative instruments or engaging popular international
accounting firms as audit institutions. Moreover, results reveal that the
permeability of initiative risk management has an unstable effect on firm
value, that is, a nonlinear relationship exists between the permeability
of initiative risk management and firm value.
Journal: Applied Economics
Pages: 658-668
Issue: 8
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085639
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085639
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Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:658-668
Template-Type: ReDIF-Article 1.0
Author-Name: Muthucattu Thomas Paul
Author-X-Name-First: Muthucattu Thomas
Author-X-Name-Last: Paul
Author-Name: James D. Kimata
Author-X-Name-First: James D.
Author-X-Name-Last: Kimata
Title: The linkages, persistence, asymmetry in the volatility, the price discovery and efficiency, and the effect of the US subprime mortgage financial crisis on the spot and the futures market's returns: the case of India
Abstract:
This article examines the effects of persistence, asymmetry and the US
subprime mortgage crisis on the volatility of the returns and also the
price discovery, efficiency and the linkages and causality between the
spot and futures volatility by using various classes of the ARCH and GARCH
models, and through the Granger's causality. We have used two indices: one
for spot and the other for futures, for the daily data from 12 June 2000
to 30 September 2013 from Nifty stock indices. We have then tested for
ARCH effects, and subsequently employed various models of the ARCH and
GARCH conditional volatility. The GARCH(1,1) model is found to be
significant, and it implies that the returns are not autocorrelated and
have 'short memory'. It supports the hypothesis of the efficiency of the
markets. The negative 'news' has more significant effect on volatility,
corroborating the 'leverage impact' in finance on market volatility. We
have also tested the volatility spillover effects. The two methods we
employed support the spillover effects and the causality is bidirectional.
We also have used the dummy variable for the US subprime mortgage
financial crisis and found that they are statistically significant. Indian
stock market is thus integrated to the world stock markets.
Journal: Applied Economics
Pages: 669-683
Issue: 8
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085641
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085641
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Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:669-683
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Author-Name: Zheng Fang
Author-X-Name-First: Zheng
Author-X-Name-Last: Fang
Title: Returns to schooling for urban and migrant workers in China: a detailed investigation
Abstract:
We use a new data set, the 2009 Rural Urban Migration in China (RUMiC) to
estimate returns to schooling in China using instrumental variable (IV)
estimation. After identifying a set of instruments, we conduct
comprehensive validity and relevance testing of different combinations of
instruments as well as robustness analysis of our estimates for
rural-to-urban migrants and urban residents in China. We find that our
point estimates are in the 6-9% range for urban workers compared to 7-8%
for migrant workers. Returns for men (at 8-9%) are slightly higher than
for women (at 6-7%). Thus, private returns to education in urban China in
2009 were not as high as other transition and developing countries, but
substantial and have increased over time. Comparing OLS and IV estimates,
we also find that the attenuation bias due to measurement error is
generally large and more important in the migrant sample compared to the
urban sample.
Journal: Applied Economics
Pages: 684-700
Issue: 8
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085642
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085642
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Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:684-700
Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Author-Name: Rodrigo Zeidan
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Zeidan
Title: Tacit collusion with imperfect monitoring in the Canadian manufacturing industry: an empirical study
Abstract:
This article undertakes a cross-sectoral analysis of a salient empirical
implication of the model of tacit collusion advanced by Abreu, Pearce, and
Stachetti (1986). Specifically, we assess the prevalence of a first-order
Markovian process for alternating between price wars and collusive periods
through nonparametric tests. The analysis focuses on 30 different
industries in Canada. The evidence provides weak support for optimal
collusion in one industry, which is consistent with the idea that such
kind of collusive arrangements is unusual, or, if collusion is all too
common, that price wars as deviations from collusion are rare.
Journal: Applied Economics
Pages: 701-711
Issue: 8
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085643
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085643
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Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:701-711
Template-Type: ReDIF-Article 1.0
Author-Name: Constant I. Tra
Author-X-Name-First: Constant I.
Author-X-Name-Last: Tra
Author-Name: Charles A. Towe
Author-X-Name-First: Charles A.
Author-X-Name-Last: Towe
Title: The implications of the US renewable fuel standard programme for farm structure
Abstract:
We investigate the impact of the 2005 Renewable Fuel Standard (RFS) on
farm structure, particularly farm size. We rely on the salience of a new
ethanol plant in a farmers' local neighbourhood to identify the impact of
the RFS mandate on these spatially advantaged farms. To control for the
nonrandom selection of ethanol production facilities, we utilize a
propensity score matching estimator, and to remove impact of farm-level or
market shifting unobservables resulting from shifts in commodity prices we
employ a difference-in-difference (DD) matching approach. We estimate the
treatment effect of an ethanol production facility on farm size prior to
the RFS mandate and after the RFS programme. The effect of the RFS policy
on farm size is obtained as the difference between these two DD matching
estimators. Overall, our results suggest that the RFS programme raised the
probability of farm size increase by roughly 12-18%, on average, for farms
located within a 30-mile radius of new ethanol plants. In addition, the
programme contributed to a net increase in farm size of 25-32%, on
average, for those spatially advantaged farms.
Journal: Applied Economics
Pages: 712-722
Issue: 8
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085644
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085644
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Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:712-722
Template-Type: ReDIF-Article 1.0
Author-Name: Ya Yu
Author-X-Name-First: Ya
Author-X-Name-Last: Yu
Author-Name: C. Nicholas Mckinney
Author-X-Name-First: C. Nicholas
Author-X-Name-Last: Mckinney
Author-Name: Steven B. Caudill
Author-X-Name-First: Steven B.
Author-X-Name-Last: Caudill
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Athletic contests and individual robberies: an analysis based on hourly crime data
Abstract:
Using hourly data on individual robberies, this article
employs a novel approach to investigate the relationship between athletic
contests and individual robberies in Memphis, Tennessee, a well-known
entertainment destination, with its iconic Beale Street locale, in the US.
Empirical results indicate that home basketball games hosted by the NBA's
Memphis Grizzlies and those hosted by the University of Memphis Tigers are
associated with increases in individual robberies, while away games are
not associated with such an increase. This finding is consistent with the
hot spot theory of crime, as large numbers of individuals
travel to the games, thus providing additional opportunities for crime.
Journal: Applied Economics
Pages: 723-730
Issue: 8
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085645
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085645
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:8:p:723-730
Template-Type: ReDIF-Article 1.0
Author-Name: Yizheng Jin
Author-X-Name-First: Yizheng
Author-X-Name-Last: Jin
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Victor Wong
Author-X-Name-First: Victor
Author-X-Name-Last: Wong
Title: Water as an investment: liquid yet illiquid!
Abstract:
The water industry is in great need of further large investments to
address existing severe water shortages worldwide which requires the
participation of private sector investors. This industry is heavily
infrastructure based and is therefore saddled with fixed assets-in-place
or illiquid assets. This exposes the industry to what is termed as
'illiquidity risk', and hence, investors in this industry should be
compensated for bearing this risk with an appropriate return premium (i.e.
extra return). In this study, we provide evidence as to whether
illiquidity risk indeed significantly affects returns in this industry. We
examine the case of all 76 firms that compose the five major global water
indices. After controlling for other factors that impact on returns, our
results suggest that asset illiquidity is positively associated with stock
returns. Specifically, water firms with a larger proportion of illiquid
assets-in-place are observed to have greater stock returns than those with
a smaller proportion of illiquid assets. Our results have important
implications for the financing of water-related projects particularly
those which involve the participation of investors from the private
sector.
Journal: Applied Economics
Pages: 731-745
Issue: 9
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085646
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085646
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Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:731-745
Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Schwirplies
Author-X-Name-First: Claudia
Author-X-Name-Last: Schwirplies
Author-Name: Andreas Ziegler
Author-X-Name-First: Andreas
Author-X-Name-Last: Ziegler
Title: Offset carbon emissions or pay a price premium for avoiding them? A cross-country analysis of motives for climate protection activities
Abstract:
This article contributes to the economic literature on pure and impure
public goods by considering two alternatives for contributing to the
public good climate protection: offsetting carbon emissions from
conventional consumption or paying higher prices for climate-friendly
products. We empirically examine a wide range of motives and their impact
on individuals' choice in favour of these two alternatives relying on data
from representative international surveys. Our results indicate that
environmental awareness, warm glow motives and the desire to set a good
example have the most robust effects on both climate protection activities
in Germany and the United States. However, some motives differ
considerably between both alternatives and the two countries. A green
identity enhances the willingness to pay a price premium for
climate-friendly goods or services in Germany, while social norms seem to
be of much higher relevance in the United States. Our results further
suggest that the choice of climate protection activities, especially of
carbon offsetting, entails a high degree of uncertainty.
Journal: Applied Economics
Pages: 746-758
Issue: 9
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1085647
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1085647
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:746-758
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Schaffer
Author-X-Name-First: Marc
Author-X-Name-Last: Schaffer
Author-Name: Mark Wheeler
Author-X-Name-First: Mark
Author-X-Name-Last: Wheeler
Title: The impact of housing market disturbances on the US financial system: a pre-crisis analysis
Abstract:
A common critique of the Federal Reserve over the past crisis is that it
should have better anticipated the impact of the run-up in home mortgage
debt and the subsequent housing market crash on the financial system. As a
result, the Federal Reserve should have moved much more quickly to shore
up financial markets. Our article tests the hypothesis that the impact of
the housing market crash on the financial system could have been
anticipated. Using a VAR model along with impulse response functions and
variance decompositions, we examine the link between housing market
mortgage debt shocks and the financial intermediaries' credit market
behaviour. We find important connections between key macroeconomic
variables and the credit behaviour of these financial institutions.
However, using the pre-crisis data, we find that housing market debt
shocks fail to have an impact on the credit markets accessed by these
firms. These results support the notion that the impact of this crisis on
the financial system could not have been anticipated given the information
available at the time.
Journal: Applied Economics
Pages: 759-771
Issue: 9
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1088138
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088138
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Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:759-771
Template-Type: ReDIF-Article 1.0
Author-Name: Hubert Dichtl
Author-X-Name-First: Hubert
Author-X-Name-Last: Dichtl
Author-Name: Wolfgang Drobetz
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Drobetz
Author-Name: Martin Wambach
Author-X-Name-First: Martin
Author-X-Name-Last: Wambach
Title: Testing rebalancing strategies for stock-bond portfolios across different asset allocations
Abstract:
We compare the risk-adjusted performance of stock-bond portfolios between
rebalancing and buy-and-hold across different asset allocations by
reporting statistical significance levels. Our investigation is based on a
30-year dataset and incorporates the financial markets of the United
States, the United Kingdom and Germany. To draw useful recommendations to
investment management, we implement a history-based simulation approach
which enables us to mimic realistic market conditions. Even if the
portfolio weight of stocks is very low, our empirical results show that a
frequent rebalancing significantly enhances risk-adjusted portfolio
performance for all analysed countries and all risk-adjusted performance
measures.
Journal: Applied Economics
Pages: 772-788
Issue: 9
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1088139
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088139
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:772-788
Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Mi
Author-X-Name-First: Jianhua
Author-X-Name-Last: Mi
Author-Name: Hong Sheng
Author-X-Name-First: Hong
Author-X-Name-Last: Sheng
Author-Name: Cassandra Elrod
Author-X-Name-First: Cassandra
Author-X-Name-Last: Elrod
Title: Financing, reputation and information disclosure quality in the Chinese market
Abstract:
In this article, we propose a theoretical model based on the reputation
theory and hypothesize a positive relation between the information
disclosure quality and the company's refinancing decision. We collected
data from the listed companies, which refinances in Shenzhen main board
and SME board during 2006-2012, as a panel sample, and tested the
hypothesis empirically. The results indicate that there exists a
significant positive correction short-term relation between refinancing
decision and the information disclosure quality, but in the long term the
relationship between the information disclosure quality and refinancing
decision is not significant.
Journal: Applied Economics
Pages: 789-798
Issue: 9
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1088140
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088140
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:789-798
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Pino
Author-X-Name-First: Gabriel
Author-X-Name-Last: Pino
Author-Name: J. D. Tena
Author-X-Name-First: J. D.
Author-X-Name-Last: Tena
Author-Name: Antoni Espasa
Author-X-Name-First: Antoni
Author-X-Name-Last: Espasa
Title: Geographical disaggregation of sectoral inflation. Econometric modelling of the Euro area and Spanish economies
Abstract:
This article studies the performance of different modelling strategies for
969 and 600 monthly price indexes disaggregated by sectors and
geographical areas in Spain, regions and in the Euro Area 12 (EA12)
countries. We also provide, by means of spatial bi-dimensional vector
equilibrium correction models for all pairs of prices between neighbours,
a description of spatial cointegration restrictions that could be useful
for understanding price setting within an economy. We study the relevance
of the regional disaggregation by using the proposed models to forecast
the corresponding headline inflation and testing whether it is more
accurate than alternative forecasts based on aggregated models. The
results for Spain show that this is the case. Country disaggregation
forecasts are also reliable for the EA12, but only because derived
headline inflation forecasting is not significantly worse than alternative
forecasts. The models in this article can be used for competitive analysis
and other macro and regional analysis.
Journal: Applied Economics
Pages: 799-815
Issue: 9
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1088141
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088141
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:799-815
Template-Type: ReDIF-Article 1.0
Author-Name: Carla Fernandes
Author-X-Name-First: Carla
Author-X-Name-Last: Fernandes
Author-Name: Paulo M. Gama
Author-X-Name-First: Paulo M.
Author-X-Name-Last: Gama
Author-Name: Elisabete Vieira
Author-X-Name-First: Elisabete
Author-X-Name-Last: Vieira
Title: Does local and Euro area sentiment matter for sovereign debt markets? Evidence from a bailout country
Abstract:
Does sentiment impact the sovereign debt markets? This article
investigates whether lagged domestic and Euro area irrational sentiment
(optimism or pessimism unwarranted by fundamentals) predicts future
sovereign bond spreads, in Portugal, between January 2000 and December
2013. We find that domestic and Euro area sentiment negatively forecasts
total return spreads and that this effect is stronger during the bailout
period. Also, we find that the business sentiment is even most noticed.
Therefore, Portuguese sovereign debt market is prone to the influence of
investors' sentiment.
Journal: Applied Economics
Pages: 816-834
Issue: 9
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1088142
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088142
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Handle: RePEc:taf:applec:v:48:y:2016:i:9:p:816-834
Template-Type: ReDIF-Article 1.0
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Title: Typology for flight-to-quality episodes and downside risk measurement
Abstract:
We propose a total return-based framework to measure downside risk
associated with phenomenon of capital outflows from riskier to safer
financial markets. The proposed method consists of three elements: (i) the
general definition of the flight-to-quality (FtQ) phenomenon, (ii) the
typological classification of the flight-to-quality occurrences for
associating them with the phases of the business cycle and (iii) the
automated technique to diagnose the time frames and to measure the impact
of flight-to-quality on financial instruments. The proposed framework is
applied to analyse the global-scale capital inflows/outflows from emerging
markets public debt to the US Treasuries and vice versa. The results show
that different phases of business cycles and GDP growth rates, including
turning points, could be associated with flights-to-quality of different
types and causality origins. Addressing downside risk crystallizations in
flight-to-quality occurrences, new perspectives of integrated interest
rate risk and credit risk management are discussed. For strengthening
financial stability, we suggest the use of flight-to-quality windows as
scenarios for stress testing, both for banks and financial institutions.
Journal: Applied Economics
Pages: 835-853
Issue: 10
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1088143
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088143
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Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:835-853
Template-Type: ReDIF-Article 1.0
Author-Name: Young Bin Ahn
Author-X-Name-First: Young Bin
Author-X-Name-Last: Ahn
Author-Name: Yoichi Tsuchiya
Author-X-Name-First: Yoichi
Author-X-Name-Last: Tsuchiya
Title: Directional analysis of consumers’ forecasts of inflation in a small open economy: evidence from South Korea
Abstract:
We evaluate the directional accuracy of consumers’ forecasts of
inflation in predicting the movement of the actual CPI in a small open
economy. In order to do so, we use a method developed by Pesaran and
Timmermann (2009), based on South Korean data. By illustrating an
application of the new market-timing test, we show that consumers’
expectations of inflation are not a useful predictor of the CPI in South
Korea. Our findings suggest that the directional accuracy of
consumers’ 1-year-ahead forecasts of inflation is not affected by
the inflation targeting of the Bank of Korea. Our findings also suggest
that consumers’ 1-year-ahead forecasts of inflation are scattered
away from the Bank of Korea’s inflation target.
Journal: Applied Economics
Pages: 854-864
Issue: 10
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1088144
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088144
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Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:854-864
Template-Type: ReDIF-Article 1.0
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Ana Venâncio
Author-X-Name-First: Ana
Author-X-Name-Last: Venâncio
Title: The relevance of commuting zones for regional spending efficiency
Abstract:
We use data envelopment analysis (DEA) efficiency scores to show that
clustering municipalities into encompassing regional clusters improves
spending efficiency of single stand-alone municipalities. We propose a new
geographic aggregation based on municipalities-to-municipalities commuting
flows, defined using hierarchical cluster analysis. Our example for
Portugal shows that from an output-oriented perspective between 83% and
98% of municipalities would increase their efficiency scores, while from
an input-oriented perspective between 86% and 98% of municipalities would
also be better off in terms of efficiency. Then using a linear regression
model, we find that population increases positively affects the efficient
scores (via scale economies). Also, increases in the share of
high-educated and poorer residents leads to higher efficiency scores.
Journal: Applied Economics
Pages: 865-877
Issue: 10
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1088145
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1088145
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Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:865-877
Template-Type: ReDIF-Article 1.0
Author-Name: Pan Tang
Author-X-Name-First: Pan
Author-X-Name-Last: Tang
Author-Name: Belal E. Baaquie
Author-X-Name-First: Belal E.
Author-X-Name-Last: Baaquie
Author-Name: Xin Du
Author-X-Name-First: Xin
Author-X-Name-Last: Du
Author-Name: Ying Zhang
Author-X-Name-First: Ying
Author-X-Name-Last: Zhang
Title: Linearized Hamiltonian of the LIBOR market model: analytical and empirical results
Abstract:
The linearized Hamiltonian model is proposed to extend the London
Interbank Offered Rate (LIBOR) Market Model (LMM). Firstly, we studied the
Hamiltonian of LMM in the framework of quantum finance, and the nontrivial
upper triangle form of LIBOR drift is derived. The linearized Hamiltonian
is derived to improve the explanatory capability of the model for market
data. Our approach uses one more parameter to explain the initial
condition and the model can be used to calibrate LIBORs with extremely
high accuracy. Furthermore, the market time index is required for applying
the model to multi-LIBOR, and the results imply that the LIBOR future time
lattice becomes shorter as one goes from near future to distant future.
Journal: Applied Economics
Pages: 878-891
Issue: 10
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1090546
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090546
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Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:878-891
Template-Type: ReDIF-Article 1.0
Author-Name: Jaewoon Koo
Author-X-Name-First: Jaewoon
Author-X-Name-Last: Koo
Author-Name: Yunxing Song
Author-X-Name-First: Yunxing
Author-X-Name-Last: Song
Title: The relationship between income inequality and aggregate saving: an empirical analysis using cross-country panel data
Abstract:
If the rich save more than the poor, an increase in income inequality
raises aggregate saving. We investigate whether income inequality is
positively related to aggregate saving ratio by estimating a fixed-effect
model based on a panel data of 48 countries for the period 1991--2010. We
find evidence that aggregate saving ratio increases with income inequality
using various inequality measures. In particular, the effect of income
distribution on saving is greater and statistically more significant with
in financially developed, rich and OECD countries. It suggests that the
rich save much more than the poor under advanced financial system and in a
rich country. We also find that the relationship between income inequality
and saving ratio is closer in the 2000s than the 1990s. This finding may
result from financial development and the high income level in the 2000s.
Journal: Applied Economics
Pages: 892-901
Issue: 10
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1090548
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090548
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Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:892-901
Template-Type: ReDIF-Article 1.0
Author-Name: James J. Kung
Author-X-Name-First: James J.
Author-X-Name-Last: Kung
Title: A nonparametric kernel regression approach for pricing options on stock market index
Abstract:
Previous options studies typically assume that the dynamics of the
underlying asset price follow a geometric Brownian motion (GBM) when
pricing options on stocks, stock indices, currencies or futures. However,
there is mounting empirical evidence that the volatility of asset price or
return is far from constant. This article, in contrast to studies that use
parametric approach for option pricing, employs nonparametric kernel
regression to deal with changing volatility and, accordingly, prices
options on stock index. Specifically, we first estimate nonparametrically
the volatility of asset return in the GBM based on the Nadaraya--Watson
(N--W) kernel estimator. Then, based on the N--W estimates for the
volatility, we use Monte Carlo simulation to compute option prices under
different settings. Finally, we compare the index option prices under our
nonparametric model with those under the Black--Scholes model and the
Stein--Stein model.
Journal: Applied Economics
Pages: 902-913
Issue: 10
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1090549
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090549
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Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:902-913
Template-Type: ReDIF-Article 1.0
Author-Name: Thai-Ha Le
Author-X-Name-First: Thai-Ha
Author-X-Name-Last: Le
Title: Dynamics between energy, output, openness and financial development in sub-Saharan African countries
Abstract:
This study aims to establish the connection between energy use, economic
output, financial development and trade, based on the panel data of 15
sub-Saharan African (SSA) countries during the period from 1983 to 2010.
One full main panel and two subpanels were created by incorporating
low-income and middle-income countries. The panel cointegration test
results indicate a long-run relationship between the variables. The mean
group (MG) estimators show that energy consumption, financial development,
capital and international trade have significant impacts on economic
output. In the case of middle-income countries, the Granger causality
analysis reveals that rising economic output leads to higher energy
consumption, but this is not true vice versa. This means that energy
conservation measures are unlikely to have adverse impacts upon economic
output. On the other hand, there is a complementary relationship between
financial development and energy consumption. In this case, energy
conservation measures should be critically analysed and implemented, so as
not to have an unfavourable impact on financial development. In regard to
low-income economies, there is no relationship between energy use and any
of the other variables mentioned. Thus, a reduction in energy consumption
has little or no significant impact on output, financial development,
capital and trade.
Journal: Applied Economics
Pages: 914-933
Issue: 10
Volume: 48
Year: 2016
Month: 2
X-DOI: 10.1080/00036846.2015.1090550
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090550
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Handle: RePEc:taf:applec:v:48:y:2016:i:10:p:914-933
Template-Type: ReDIF-Article 1.0
Author-Name: Svetlana Fedoseeva
Author-X-Name-First: Svetlana
Author-X-Name-Last: Fedoseeva
Title: Same currency, different strategies? The (asymmetric) role of the exchange rate in shaping European agri-food exports
Abstract:
AbstractThis article uses a nonlinear autoregressive
distributed lag (NADRL) model introduced by Shin, Yu, and Greenwood-Nimmo
(2014) to assess the role that the exchange rate plays in shaping European
agri-food exports after the introduction of the Euro. Although the 10
countries of this study share the same currency (and thus a single nominal
exchange rate with the US), cross-country discrepancies of exports’
reactions to exchange rate changes are evident. Moreover, I find that
exchange rate changes influence exports asymmetrically in the long run.
Euro appreciations are harmful to a lesser extent than Euro depreciations
are beneficial for European agri-food exports. The magnitude of this
effect is country-specific and varies considerably between individual
exporting countries. Exported quantities are less affected by exchange
rate fluctuations than export values, which is in line with local currency
price stabilization strategies of the exporters. This finding is
interpreted as a sign of an incomplete exchange rate pass-through due to
strategic (asymmetric) markup adjustments by firms with heterogeneous
productivity. Besides that, the outcomes suggest that nonprice competition
might be in play in some cases.
Journal: Applied Economics
Pages: 1005-1017
Issue: 11
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1090557
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090557
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Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:1005-1017
Template-Type: ReDIF-Article 1.0
Author-Name: Ficawoyi Donou-Adonsou
Author-X-Name-First: Ficawoyi
Author-X-Name-Last: Donou-Adonsou
Author-Name: Sokchea Lim
Author-X-Name-First: Sokchea
Author-X-Name-Last: Lim
Title: An empirical analysis of remittance flows into West African Economic and Monetary Union: a panel time-series approach
Abstract:
ABSTRACTThe article empirically analyses the motivations
and long-run economic outcomes of remittance inflows into the West African
Economic and Monetary Union. Using Westerlund’s (2007) ECM for
panel time series and data spanning 1975--2011, the results show that
there is no evidence of a long-run impact of remittances on income per
capita in the region. The inflows seem to be motivated by investment, but
the money may be used to promote consumption instead. This phenomenon
could be characterized by information asymmetry between migrants and the
recipients.
Journal: Applied Economics
Pages: 1018-1029
Issue: 11
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093080
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093080
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Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:1018-1029
Template-Type: ReDIF-Article 1.0
Author-Name: Meltem Ucal
Author-X-Name-First: Meltem
Author-X-Name-Last: Ucal
Author-Name: Alfred Albert Haug
Author-X-Name-First: Alfred Albert
Author-X-Name-Last: Haug
Author-Name: Mehmet Hüseyin Bilgin
Author-X-Name-First: Mehmet Hüseyin
Author-X-Name-Last: Bilgin
Title: Income inequality and FDI: evidence with Turkish data
Abstract:
ABSTRACTThis article explores how foreign direct investment
(FDI) and other determinants impact income inequality in Turkey in the
short- and long-run. We apply the nonlinear auto-regressive distributed
lag (ARDL) modelling approach, which is suitable for small samples. The
data for the study cover the years from 1970 to 2008. The empirical
results indicate the existence of a co-integration relationship among the
variables with asymmetric adjustment of the income distribution in the
short- and long-run. The negative impact of FDI on the Gini coefficient,
decreasing income inequality, is statistically significant in the short-
and long-run, though with a quantitatively small impact in both cases. In
the short run, GDP growth increases inequality initially, an effect that
is reversed in the next period, increases in domestic gross capital
formation decreases inequality, and increases in the literacy rate have
very minor adverse effects on income equality. However, in the long run
these variables have no statistically significant effects on the Gini
coefficient. A reduction in the population growth rate reduces inequality
in the short run but has no effect in the long run, whereas an increase in
the rate reduces inequality in the long run but has no effect in the short
run.
Journal: Applied Economics
Pages: 1030-1045
Issue: 11
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093081
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093081
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Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:1030-1045
Template-Type: ReDIF-Article 1.0
Author-Name: Navina Lucke
Author-X-Name-First: Navina
Author-X-Name-Last: Lucke
Author-Name: Stefan Eichler
Author-X-Name-First: Stefan
Author-X-Name-Last: Eichler
Title: Foreign direct investment: the role of institutional and cultural determinants
Abstract:
ABSTRACTUsing panel data for 29 source and 65 host
countries in the period 1995--2009, we examine the determinants of
bilateral FDI stocks, focusing on institutional and cultural factors. The
results reveal that institutional and cultural distance is important and
that FDI has a predominantly regional aspect. FDI to developing countries
is positively affected by better institutions in the host country, while
foreign investors prefer to invest in developed countries that are more
corrupt and politically unstable compared to home. The results indicate
that foreign investors prefer to invest in countries with less diverse
societies than their own.
Journal: Applied Economics
Pages: 935-956
Issue: 11
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1090551
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090551
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Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:935-956
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Javed Iqbal
Author-X-Name-First: Javed
Author-X-Name-Last: Iqbal
Author-Name: Misbah Nosheen
Author-X-Name-First: Misbah
Author-X-Name-Last: Nosheen
Title: Commodity trade between Pakistan and the US: is there evidence of the J-curve?
Abstract:
ABSTRACTA few studies that have attempted to estimate the
short-run (J-curve) and long-run impact of exchange rate depreciation on
Pakistan’s trade balance are either based on aggregate trade data
between Pakistan and the rest of the world or between Pakistan and her
bilateral trading partners. The findings are mixed at best. Considering
the trade balance between Pakistan and the US, as one of its major
partners, no significant effects have been discovered. Suspecting that the
trade flows between the two countries could suffer from another
aggregation bias, we disaggregate their trade flows by commodity and
consider the trade balance of 45 industries that trade between the two
countries. We find significant short-run effects of currency depreciation
on the trade balance of 17 industries. The short-run effects last into the
long run in 15 cases. The largest industry that account for more than 10%
of the trade seems to benefit from real depreciation in the long run.
Journal: Applied Economics
Pages: 957-965
Issue: 11
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1090552
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090552
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Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:957-965
Template-Type: ReDIF-Article 1.0
Author-Name: Cécile Couharde
Author-X-Name-First: Cécile
Author-X-Name-Last: Couharde
Author-Name: Serge Rey
Author-X-Name-First: Serge
Author-X-Name-Last: Rey
Author-Name: Audrey Sallenave
Author-X-Name-First: Audrey
Author-X-Name-Last: Sallenave
Title: External debt and real exchange rates’ adjustment in the euro area: new evidence from a nonlinear NATREX model
Abstract:
ABSTRACTIn this article, we revisit medium- to long-run
real exchange rate determination within the euro area, focusing on the
role of external debt. Accordingly, we rely on the NATural Real EXchange
rate (NATREX) approach which provides an explicit framework of the
external debt--real exchange rates nexus. In particular, given the
indebtedness levels reached by the euro area economies, we investigate
potential nonlinearity in real exchange rates dynamics, according to the
level of the external debt. Our results evidence that during the monetary
union, gross and net external debt positions of the euro area countries
have exerted pressures on real exchange rate dynamics within the area.
Moreover, we find that, beyond a threshold reached by the external debt,
euro area countries are found to be in a vulnerable position, leading to
an unavoidable adjustment process. Nevertheless, the adjustment process,
while effective, is found to be low and occurs slowly.
Journal: Applied Economics
Pages: 966-986
Issue: 11
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1090554
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090554
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Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:966-986
Template-Type: ReDIF-Article 1.0
Author-Name: Yonghong An
Author-X-Name-First: Yonghong
Author-X-Name-Last: An
Author-Name: Kai Zhao
Author-X-Name-First: Kai
Author-X-Name-Last: Zhao
Author-Name: Rong Zhou
Author-X-Name-First: Rong
Author-X-Name-Last: Zhou
Title: Health spending and public pension: evidence from panel data
Abstract:
ABSTRACTThis article empirically investigates the
determinants of aggregate health expenditure in a panel of OECD countries
from 1980 to 2005. We differ from most existing studies by testing some
new determinants motivated by recent theoretical advances in the
literature. We find that a one percentage increase in public pension
payments per elderly person leads to approximately a one third percentage
increase in aggregate health spending, and this effect is significant and
robust across a variety of model specifications. A back of the envelope
calculation based on this estimate suggests that the expansion of the
public pension programme on average accounts for approximately over one
fifth of the rise in aggregate health expenditure as a share of GDP in the
set of OECD countries during 1980--2005. In addition, we find that the
estimated effect of GDP per capita in our model ranges from 0.66 to 0.80,
which is consistent with the results from some recent studies, and thus
further reinforces the finding in the literature that health care is not a
luxury good.
Journal: Applied Economics
Pages: 987-1004
Issue: 11
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1090556
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1090556
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Handle: RePEc:taf:applec:v:48:y:2016:i:11:p:987-1004
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Kesternich
Author-X-Name-First: Martin
Author-X-Name-Last: Kesternich
Title: Minimum participation rules in international environmental agreements: empirical evidence from a survey among delegates in international climate negotiations
Abstract:
Recent contributions to the theoretical and experimental literature
suggest that minimum participation rules (MPRs) are able to reduce
free-riding incentives and may facilitate cooperation (or at least
coordination) at the extensive margin of international environmental
agreements. Based on a data set from a worldwide survey among delegates in
international climate negotiations, this article assesses preferences for
different MPRs for a future climate treaty among key players. The
empirical findings provide evidence that small countries with low
bargaining power rather opt for large minimum membership requirements
while industrialized countries push forward the idea of a small carbon
club of the largest emitters only. In contrast, delegates from countries
in transition try to keep emission thresholds rather low which would allow
a future agreement to come into force without their signature.
Journal: Applied Economics
Pages: 1047-1065
Issue: 12
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093082
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093082
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Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1047-1065
Template-Type: ReDIF-Article 1.0
Author-Name: João Paulo Vieito
Author-X-Name-First: João Paulo
Author-X-Name-Last: Vieito
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Author-Name: Zhen-Zhen Zhu
Author-X-Name-First: Zhen-Zhen
Author-X-Name-Last: Zhu
Title: Could the global financial crisis improve the performance of the G7 stocks markets?
Abstract:
Financial crises are normally associated with negative effects on
financial markets. In this article, we investigate whether the most recent
global financial crisis (GFC) had any positive impact on the G7 (Canada,
France, Germany, Italy, Japan, the United Kingdom and the United States)
indices. To conduct the analysis we employ the mean--variance (MV)
analysis, CAPM statistics, Hurst exponent, runs test, multiple variation
ratio test and stochastic dominance (SD) tests. Our MV and CAPM results
conclude that most of the G7 stock indices are significantly less
volatile. The results from Hurst exponent, run tests and multiple
variation ratio confirm that efficiency improved in the post-GFC period.
Finally, our SD results conclude that there is no arbitrage opportunity
and the markets are efficient due to the GFC, and, in general, investors
prefer investing in the indices after the GFC. Overall, we conclude that
the GFC led to markets that are more efficient and mature, confirming that
crises can also have positive impacts on stock markets. These findings
provide important information for investors and market regulators.
Journal: Applied Economics
Pages: 1066-1080
Issue: 12
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093083
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093083
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Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1066-1080
Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Ventura-Marco
Author-X-Name-First: Manuel
Author-X-Name-Last: Ventura-Marco
Author-Name: Carlos Vidal-Meliá
Author-X-Name-First: Carlos
Author-X-Name-Last: Vidal-Meliá
Title: Integrating retirement and permanent disability in NDC pension schemes
Abstract:
In this article, we develop a theoretical basis for integrating retirement
and permanent disability using a generic nonfinancial defined contribution
framework. The methodology we use relies on a multistate overlapping
generations model that includes the so-called survivor dividend.
Currently, this feature can only be found in the Swedish defined
contribution (DC) scheme. The results achieved in the numerical example we
present endorse the fact that the model works well. Special attention is
given to the assumptions made about mortality rates for disabled people
and disability incidence rates, which largely determine the contribution
rate assigned to disability. The model could be of interest to
policymakers because, after some adaptations, it could be implemented
without too much difficulty and would uncover the real cost of disability
and minimize the risk of disability insurance being used as a vote-buying
mechanism.
Journal: Applied Economics
Pages: 1081-1102
Issue: 12
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093084
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093084
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Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1081-1102
Template-Type: ReDIF-Article 1.0
Author-Name: David Iselin
Author-X-Name-First: David
Author-X-Name-Last: Iselin
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: Using newspapers for tracking the business cycle: a comparative study for Germany and Switzerland
Abstract:
The use of news-based data for tracking the real economy has gained
popularity recently as newspapers archives have become accessible and the
need for timely information has soared. In this article, on the basis of
keyword searches in newspaper articles we construct several versions of
the so-called Recession-word Index (RWI) for Germany and Switzerland and
exploit its use for forecasting. Our main findings are the following.
First, we show that augmenting benchmark autoregressive models with the
RWI leads to improvement in accuracy of one-step-ahead forecasts of GDP
growth compared with those obtained by benchmark models. Second, the
accuracy of out-of-sample forecasts obtained with models augmented with
the RWI is comparable to that of models augmented with established
economic indicators, such as the Ifo Business Climate Index and the ZEW
Indicator of Economic Sentiment for Germany, and the KOF Economic
Barometer and the Purchasing Managers Index in manufacturing for
Switzerland. Our results are robust to changes in estimation/forecast
samples, the use of rolling versus expanding estimation windows and the
inclusion of a web-based recession indicator from Google Trends. As our
indices are timely and simple to construct, they could be replicated in
countries or regions where no reliable economic indicators exist or their
provision is very costly.
Journal: Applied Economics
Pages: 1103-1118
Issue: 12
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093085
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093085
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Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1103-1118
Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Vicente Mendoza
Author-X-Name-First: Vicente
Author-X-Name-Last: Mendoza
Title: QARMA-Beta-t-EGARCH versus ARMA-GARCH: an application to S&P 500
Abstract:
Statistical performance and out-of-sample forecast precision of ARMA-GARCH
and QARMA-Beta-t-EGARCH are compared. We study daily
returns on the Standard and Poor’s 500 (S&P 500) index and a random
sample of 50 stocks from the S&P 500 for period May 2006 to July 2010.
Competing models are estimated for periods before and during the US
financial crisis of 2008. Out-of-sample point and density forecasts are
performed for periods during and after the US financial crisis. The
results provide evidence of the superior in-sample statistical and
out-of-sample predictive performance of
QARMA-Beta-t-EGARCH.
Journal: Applied Economics
Pages: 1119-1129
Issue: 12
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093086
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093086
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Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1119-1129
Template-Type: ReDIF-Article 1.0
Author-Name: Wang Chen
Author-X-Name-First: Wang
Author-X-Name-Last: Chen
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Author-Name: Takuji Kinkyo
Author-X-Name-First: Takuji
Author-X-Name-Last: Kinkyo
Title: Financial development and financial openness nexus: the precondition of banking competition
Abstract:
We examine the dynamic relationship between financial development and
financial openness using the pooled mean group estimator developed by
Pesaran et al. (1999). Our results show that financial openness has a
positive effect on financial development in the long run, but may have a
negative effect in the short run. Using estimates of country-specific
short-run coefficients, we also find that the adverse short-run effects of
financial openness are associated with a lower degree of banking
competition. The system GMM estimator also supports these findings,
suggesting that the financial development and financial openness nexus is
contingent on the degree of banking competition. A key policy implication
is that a higher degree of banking competition is a precondition for
financial openness to promote financial development.
Journal: Applied Economics
Pages: 1130-1139
Issue: 12
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093087
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093087
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Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1130-1139
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Geertsema
Author-X-Name-First: Paul
Author-X-Name-Last: Geertsema
Author-Name: Christoph Rainer Schumacher
Author-X-Name-First: Christoph Rainer
Author-X-Name-Last: Schumacher
Title: Parimutuel contests with strategic risk-sensitive bettors
Abstract:
Existing models in the parimutuel betting literature typically explain
betting data by either assuming a single, representative bettor with
certain risk preferences or by assuming that a number of risk neutral
bettors compete strategically within a game theoretic framework. We
construct a theoretical framework of parimutuel markets in which we model
both strategic interaction and individual bettor risk
preferences, distinguishing between sophisticated insiders and
recreational outsiders. We solve this model analytically for the optimal
insider betting amount in a static symmetric Nash equilibrium. A new data
set of 126 million individual horse race bets in New Zealand from 2006 to
2014 allows us to calibrate the model. We find that insiders (those
betting $100 or more) outperform outsiders by 7.5% in terms of realized
returns. The best fit of the model to the data is obtained when insiders
are assumed to be risk neutral and to have an information advantage of
0.08 in probability terms. This finding provides empirical support for the
common assumption of risk neutrality in strategic interaction models of
parimutuel betting.
Journal: Applied Economics
Pages: 1140-1158
Issue: 12
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093088
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093088
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Handle: RePEc:taf:applec:v:48:y:2016:i:12:p:1140-1158
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Bello
Author-X-Name-First: Muhammad
Author-X-Name-Last: Bello
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Measuring heterogeneity, survey engagement and response quality in preferences for organic products in Nigeria
Abstract:
The identification of the market potentials of organic products is
important in the drive towards a sustainable agricultural development in
sub-Saharan Africa (SSA). However, available evidence shows that valuing
attributes of credence goods (such as organic products) while using stated
preference methods faces additional obstacles compared to other normal
goods. In this study, we examine consumers’ preferences and
willingness-to-pay (WTP) for health and environmental attributes of
organic products in Nigeria. We employ an approach that allows us to
adequately capture the value of organic products by linking part of the
heterogeneity across respondents to differences in scale, while making use
of indicators of survey engagement, without risks of endogeneity bias and
measurement error that arise from the deterministic methods. The empirical
results show that market for organic products exists in Nigeria, with
reduction in pesticide residues attribute attracting the highest value,
followed by the certification programme. Furthermore, we observe that
increases in the latent engagement variable lead to a greater probability
of agreement with statements relating to survey understanding and realism,
and hence more substantive output.
Journal: Applied Economics
Pages: 1159-1171
Issue: 13
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1093089
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1093089
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Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1159-1171
Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang
Author-X-Name-First: Hong
Author-X-Name-Last: Zhang
Author-Name: Shuai Gao
Author-X-Name-First: Shuai
Author-X-Name-Last: Gao
Author-Name: Fei Yang
Author-X-Name-First: Fei
Author-X-Name-Last: Yang
Title: Impact of split share structure reform on capital structures: empirical evidence from China’s listed companies
Abstract:
An econometric model based on a natural experiment and the
difference-in-differences method is introduced to empirically investigate
the impact of split share structure reform on capital structures. A total
of 1026 listed companies in Chinese A-share during 2001--2011 are used as
the sample for the research and interest-bearing debt ratios (BDRs) are
taken as a representative indicator for capital structures. The
theoretical and empirical analysis indicates that both market expansion
effect and corporate governance effect caused by the split share structure
reform are associated with an increase in BDR. As far as the timeliness is
concerned, the effects of split share structure reform on capital
structures will last 3--4 years.
Journal: Applied Economics
Pages: 1172-1181
Issue: 13
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096000
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096000
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Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1172-1181
Template-Type: ReDIF-Article 1.0
Author-Name: Shabbir Ahmad
Author-X-Name-First: Shabbir
Author-X-Name-Last: Ahmad
Author-Name: Abid A. Burki
Author-X-Name-First: Abid A.
Author-X-Name-Last: Burki
Title: Banking deregulation and allocative efficiency in Pakistan
Abstract:
This article examines the impact of deregulation policies on allocative
efficiency of banks in Pakistan. It investigates whether deregulation has
impacted the pattern of allocative efficiency of banks and explores which
bank ownership segment has been more responsive. It uses data from 1991 to
2005 and explicitly models allocative inefficiency by using the translog
shadow cost-share system. Empirical results show that overregulation and
imperfect market structure hampers the ability of banks to make
competitive decisions. We find evidence of allocative inefficiency leading
to over-utilization of labour and deposits vis-à-vis
operating cost. Empirical results for time-varying allocative efficiency
show declining levels of allocative inefficiency for state-owned and
private banks in post-reform period. Deregulation policies induce
state-owned banks to decrease over-utilization of labour relative to
deposits and operating cost while private banks succeed in using operating
cost closer to optimal levels. Hence, policymakers have latitude to
introduce more reforms without jeopardizing allocative efficiency.
Journal: Applied Economics
Pages: 1182-1196
Issue: 13
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096001
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096001
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Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1182-1196
Template-Type: ReDIF-Article 1.0
Author-Name: Syouching Lai
Author-X-Name-First: Syouching
Author-X-Name-Last: Lai
Author-Name: Hungchih Li
Author-X-Name-First: Hungchih
Author-X-Name-Last: Li
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: Does corporate governance still affect firm performance after controlling the distress factor?
Abstract:
We explore the impact of corporate governance on firm performance. We
first identify whether corporate governance can still be an influential
factor or has been largely captured by the traditional Fama-French
three-factor model. More importantly, our study adds a financial distress
factor to the Fama-French three-factor model to form a four-factor pricing
model (labelled as the ‘financial distress four-factor
model’). We find that for the US Russell 1000 firms, the financial
distress four-factor model is the better model of the two models
considered. We further find that the financial distress four-factor model
has a higher explanatory power in capturing the return variation. We find
that the differences between the return of firms with good (weak)
corporate governance and the expected return are insignificantly different
from zero for most portfolios in all the two models. The financial
distress four-factor model, however, has the fewer portfolios with return
difference being significantly different from zero, implying that
corporate governance has been better priced in the financial distress
factor.
Journal: Applied Economics
Pages: 1197-1209
Issue: 13
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096003
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096003
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Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1197-1209
Template-Type: ReDIF-Article 1.0
Author-Name: Dimos S. Kambouroudis
Author-X-Name-First: Dimos S.
Author-X-Name-Last: Kambouroudis
Author-Name: David G. McMillan
Author-X-Name-First: David G.
Author-X-Name-Last: McMillan
Title: Does VIX or volume improve GARCH volatility forecasts?
Abstract:
This article considers whether the inclusion of two additional variables
can improve volatility forecasts over a standard GARCH-based model. We
consider three alternative ways of incorporating the volatility index
(VIX) and trading volume as exogenous variables within a selection of
GARCH models. We are particularly interested in whether these variables
have additional incremental forecast power over and above the baseline
GARCH specification. Our results suggest that both the VIX and volume do
provide some additional forecast power, and this is generally improved
when considering both of these series jointly in the model. However, while
the results may be statistically significant the gain is marginal and the
coefficient values small. Moreover, in a horse race exercise VIX does not
outperform the GARCH approach. In answering the question of whether VIX
produces better forecasts than the GARCH model, then the answer is no, but
the informational content of VIX cannot be ignored and should be
incorporated into forecast regressions.
Journal: Applied Economics
Pages: 1210-1228
Issue: 13
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096004
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096004
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Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1210-1228
Template-Type: ReDIF-Article 1.0
Author-Name: Füsun Yenilmez
Author-X-Name-First: Füsun
Author-X-Name-Last: Yenilmez
Author-Name: Nuray Girginer
Author-X-Name-First: Nuray
Author-X-Name-Last: Girginer
Title: Comparison of indicators of women’s labour between Turkey and EU member states by employing multidimensional scaling analysis and clustering analysis
Abstract:
At present, because of social, cultural and economic changes, women
support the economies of their countries by their status as workers. In
this research, we aim at comparing the status of Turkey in terms of
indicators of women in the labour force with that of EU countries, thereby
revealing the similarities and differences. The variables indicating women
in the labour forces of the 28 EU countries and Turkey were analysed
utilizing multidimensional scaling analysis (MDSA) and clustering analysis
(CA).According to the MDSA, the countries form three different groups in
two-dimensional space. The clusters formed by the CA are congruent with
the groups formed according to the MDSA. When compared with EU members,
Turkey has very low values, particularly in terms of the ratio of working
women, the ratio of jobless females who are primary or secondary school
graduates and the ratio of women who are senior high school graduates.
Journal: Applied Economics
Pages: 1229-1239
Issue: 13
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096005
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096005
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Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1229-1239
Template-Type: ReDIF-Article 1.0
Author-Name: Hu Mei
Author-X-Name-First: Hu
Author-X-Name-Last: Mei
Author-Name: Zehui Zhan
Author-X-Name-First: Zehui
Author-X-Name-Last: Zhan
Author-Name: Fong
Author-X-Name-First:
Author-X-Name-Last: Fong
Author-Name: Ting Liang
Author-X-Name-First: Ting
Author-X-Name-Last: Liang
Author-Name: Zicheng Ma
Author-X-Name-First: Zicheng
Author-X-Name-Last: Ma
Title: Planned behaviour of tourism students’ entrepreneurial intentions in China
Abstract:
This research aims to investigate the
influence of planned behaviour and personal variables on entrepreneurial
intention in order to explain and improve low entrepreneurial intention
among tourism students in China. A total of 109 tourism students were
surveyed to find the key factors affecting their entrepreneurial intention
by factor analysis. The six hypotheses were then tested in a sample of 267
Chinese tourism students. According to structural equation modelling
(SEM), it was found that there are statistically significant relationships
between personal attitude, subjective norm, perceived behavioural control
and entrepreneurial intention. Multi-group analysis further showed that
there are differences between personal attitude, subjective norm and
perceived behavioural control according to different personal variables.
The results highlight the importance of taking a subdividing approach when
researching the factors that influence entrepreneurial intention. Thus, we
believe a number of implications about the most effective role of creating
entrepreneurial atmosphere from universities, enhancing tourism
students’ self-efficacy, and setting student-centred policies in
promoting and developing entrepreneurial intention.
Journal: Applied Economics
Pages: 1240-1254
Issue: 13
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096006
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096006
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Handle: RePEc:taf:applec:v:48:y:2016:i:13:p:1240-1254
Template-Type: ReDIF-Article 1.0
Author-Name: Belén González-Díaz
Author-X-Name-First: Belén
Author-X-Name-Last: González-Díaz
Author-Name: Rosario Gandoy
Author-X-Name-First: Rosario
Author-X-Name-Last: Gandoy
Title: Offshoring and employment structure in the EU periphery: the case of Spain
Abstract:
The effects of offshoring of production have received a great deal of
interest due to their implications on labour markets. However, the main
theoretical predictions related to this issue are not always fulfilled in
the empirical analysis; according to the Stolper--Samuelson theorem, there
seems to be unanimous support for its effects in advanced countries whose
production is relocated but not at all for recipient economies of the
same. Additionally, there is a lack of empirical evidence in countries
specialized in unskilled-labour tasks which are, at the same time,
economies with higher relative wages in a global framework such as the
Spanish economy. In this sense, the aim of this article is to analyse the
effects of material offshoring in the relative composition of employment
in the Spanish manufacturing industry during the period 1990--2007.
Furthermore, we investigate the effects of immigrant labour and the
temporary employment rate due to its increasing relevance in the Spanish
economy during the period analysed. Using a generalized methods of moments
(GMM) approach, our results suggest that, as opposed to most developed
countries, offshoring in Spain has favoured the demand for blue-collar
workers. In addition, we confirm that the increase in immigration and the
increasing use of temporary contracts have enlarged the share of
low-skilled workers.
Journal: Applied Economics
Pages: 1255-1270
Issue: 14
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096007
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096007
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Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1255-1270
Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Barbi
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Barbi
Author-Name: Silvia Romagnoli
Author-X-Name-First: Silvia
Author-X-Name-Last: Romagnoli
Title: Optimal hedge ratio under a subjective re-weighting of the original measure
Abstract:
In this article we study a risk-minimizing hedge ratio with futures
contracts, where the risk of the hedged portfolio is measured through a
spectral risk measure (SRM), thus incorporating the degree of
agent’s risk aversion. We empirically estimate the optimal hedge
ratio (OHR) using a long time series of UK and US equity indices, the
EURUSD and EURGBP exchange rates and four liquid commodities (Brent crude
oil, corn, gold and copper), to represent different asset classes.
Comparing the results with common OHRs (such as the minimum variance and
the minimum expected shortfall), we find that the agent’s risk
aversion has a material impact, and should not be ignored in risk
management.
Journal: Applied Economics
Pages: 1271-1280
Issue: 14
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096008
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096008
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Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1271-1280
Template-Type: ReDIF-Article 1.0
Author-Name: Frederick Dongchuhl Oh
Author-X-Name-First: Frederick Dongchuhl
Author-X-Name-Last: Oh
Author-Name: Kyung Suh Park
Author-X-Name-First: Kyung Suh
Author-X-Name-Last: Park
Title: Corporate governance structure and product market competition
Abstract:
This article assesses the effects of the competitive structure of a
product market on a firm’s corporate governance structure. Our
model demonstrates that shareholders strategically determine the corporate
governance structure, including the manager’s stock ownership and
his controlling power over the firm, in order to maximize their utility in
the product market competition. We find that the manager’s stock
ownership is lower and his controlling power over the firm is higher when
the firm’s product is more profitable or when competition within
the product market is more severe. The inefficiency of the wealth transfer
from shareholders to the manager also affects the corporate governance
structure.
Journal: Applied Economics
Pages: 1281-1292
Issue: 14
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1096009
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1096009
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Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1281-1292
Template-Type: ReDIF-Article 1.0
Author-Name: Marizah Minhat
Author-X-Name-First: Marizah
Author-X-Name-Last: Minhat
Author-Name: Nazam Dzolkarnaini
Author-X-Name-First: Nazam
Author-X-Name-Last: Dzolkarnaini
Title: Is executive compensation a substitute governance mechanism to debt financing and leasing?
Abstract:
This study examines whether and how CEO equity incentives relate to
financing choices (i.e., debt and leases). Using manually collected CEO
compensation and lease data for a sample of large UK firms, we found
evidence of a negative relationship between CEO equity incentives and firm
leverage. We also found that CEO equity incentives and leases are
negatively related. The results are consistent with the theory introduced
in this study on the substitutability of executive compensation and
firm’s debt/lease financing. Our findings represent fresh empirical
evidence and renewed interpretation regarding the relationship between
executive equity-based incentives and firm’s financing choices. The
substitutability theory we introduced here suggests that firms with
greater use of debt and/or leases will implement less equity-based
compensation in mitigating the agency cost of equity.
Journal: Applied Economics
Pages: 1293-1302
Issue: 14
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100247
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100247
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1293-1302
Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Otterbach
Author-X-Name-First: Steffen
Author-X-Name-Last: Otterbach
Author-Name: Alfonso Sousa-Poza
Author-X-Name-First: Alfonso
Author-X-Name-Last: Sousa-Poza
Title: Job insecurity, employability and health: an analysis for Germany across generations
Abstract:
In this article, we use 12 waves of the German Socio-Economic Panel
(GSOEP) to examine the relationship between job insecurity, employability
and health-related well-being. Our results indicate that being unemployed
has a strong negative effect on life satisfaction and health. They also,
however, highlight the fact that this effect is most prominent among
individuals over the age of 40. A second observation is that job
insecurity is also associated with lower levels of life satisfaction and
health, and this association is quite strong. This negative effect of job
insecurity is, in many cases, exacerbated by poor employability.
Journal: Applied Economics
Pages: 1303-1316
Issue: 14
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100248
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100248
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1303-1316
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Karoubi
Author-X-Name-First: Bruno
Author-X-Name-Last: Karoubi
Author-Name: Régis Chenavaz
Author-X-Name-First: Régis
Author-X-Name-Last: Chenavaz
Author-Name: Corina Paraschiv
Author-X-Name-First: Corina
Author-X-Name-Last: Paraschiv
Title: Consumers’ perceived risk and hold and use of payment instruments
Abstract:
Consumer decisions regarding retail payment instruments entail private and
social costs. Due to these social costs, policymakers are increasingly
trying to understand the determinants of consumer payment choices as
documented by the European Central Bank’s regular publications.
This article contributes to this understanding by investigating the role
of perceived risk. Based on an original survey of French consumers, we
measure the effects of perceived risk on the decisions to hold and use the
main retail payment instruments: cash, card and cheque. We point to the
sequential dependence of the decisions to hold and use a payment
instrument, and study jointly both decisions. The bivariate analysis based
on risk factors shows that unavailability risk and time risk have the
greatest transverse influence on holding and using payment instruments.
Our results, robust to controlling for consumer characteristics, confirm
their propensity for a quick-to-use and constantly available payment
instrument. We discuss the relevance of our results for policy making
purposes.
Journal: Applied Economics
Pages: 1317-1329
Issue: 14
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100249
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100249
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Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1317-1329
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Carvalho
Author-X-Name-First: Antonio
Author-X-Name-Last: Carvalho
Author-Name: Rabindra Nepal
Author-X-Name-First: Rabindra
Author-X-Name-Last: Nepal
Author-Name: Tooraj Jamasb
Author-X-Name-First: Tooraj
Author-X-Name-Last: Jamasb
Title: Economic reforms and human development: evidence from transition economies
Abstract:
Do market-oriented economic reforms result in higher levels of human
well-being? This article studies the impact of macro-level institutional
and infrastructure reforms on the economic, educational and health
dimensions of human well-being among 25 transition economies. We use panel
data econometrics based on the LSDVC technique to analyse the effects of
market-oriented reforms on the human development index (HDI), as a measure
of human well-being, from 1992 to 2007. The results show the complexity of
reform impacts in transition countries. They show that institutional and
economic reforms led to positive economic effect and significant impacts
on other dimensions of human development. We find some positive economic
impacts from infrastructure sectors reforms. However, not every reform
measure appears to generate positive impacts. Large-scale privatizations
show negative effects in health and economic outcomes. The overall results
show the importance of the interaction among different reform measures and
the combined effect of these on human development.
Journal: Applied Economics
Pages: 1330-1347
Issue: 14
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100251
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100251
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Handle: RePEc:taf:applec:v:48:y:2016:i:14:p:1330-1347
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Ilker Kaya
Author-X-Name-First: Ilker
Author-X-Name-Last: Kaya
Title: Do financial indicators have directional predictability for US home sales?
Abstract:
This study investigates the directional predictability of financial
indicators for home sales across tranquil (1984--2005) and volatile
(1972--1983 and 2006--2013) periods. We find that the mortgage rate has
directional predictability for both existing and newly built home sales
for up to 2005. The federal funds rate generally has directional
predictability for existing (newly built) home sales in 1984--2005
(1972--1983). The term spread has directional predictability for home
sales in 1972--1983 but generally not in the tranquil period of
1984--2005. Further, unlike mortgage and federal funds rates, the term
spread has directional predictability for home sales in 2006--2013 and
thus can help the Fed with useful information (assuming that this trend
continues).
Journal: Applied Economics
Pages: 1349-1360
Issue: 15
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100253
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100253
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Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1349-1360
Template-Type: ReDIF-Article 1.0
Author-Name: Jungwoo Shin
Author-X-Name-First: Jungwoo
Author-X-Name-Last: Shin
Author-Name: Yeunjoong Kim
Author-X-Name-First: Yeunjoong
Author-X-Name-Last: Kim
Author-Name: Heekoo Nam
Author-X-Name-First: Heekoo
Author-X-Name-Last: Nam
Author-Name: Youngsang Cho
Author-X-Name-First: Youngsang
Author-X-Name-Last: Cho
Title: Economic evaluation of healthcare technology improving the quality of social life: the case of assistive technology for the disabled and elderly
Abstract:
Public investments in healthcare technology for the disabled and elderly
to improve the quality of social life have been vigorous, but the economic
evaluation of the assistive technology is still lacking. Under this
circumstance, the purpose of this study is to analyse the socio-economic
value of developing assistive technologies with the potential to improve
the quality of social life, especially for disabled and elderly
individuals. Based on a survey of 400 respondents, the spike model, a
special form of the contingent valuation method (CVM) is applied to assess
the value of assistive technologies. In Korea, a household’s
willingness-to-pay (WTP) for the development of assistive technologies is
US$4.26 per year, on average, in the form of a government-levied tax;
although many people express zero WTP for the development of these
technologies, people with higher household savings, higher levels of
education and higher levels of charity donations have a higher WTP for the
development of assistive technology. We conclude that although assistive
technologies have considerable economic value many people express zero WTP
for the development of these technologies. Therefore, political and social
educational efforts are necessary to reach social consensus on the
government investment in such technologies.
Journal: Applied Economics
Pages: 1361-1371
Issue: 15
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100254
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100254
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Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1361-1371
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Lucia Florez-Jimenez
Author-X-Name-First: Maria Lucia
Author-X-Name-Last: Florez-Jimenez
Author-Name: Julian A. Parra-Polania
Author-X-Name-First: Julian A.
Author-X-Name-Last: Parra-Polania
Title: Forward guidance with an escape clause: when half a promise is better than a full one
Abstract:
Using a three-equation New Keynesian model we find that incorporating an
escape clause (EC) into forward guidance (FG) is welfare improving as it
allows the monetary authority to avoid cases in which the cost of reduced
flexibility is too high. The EC provides the central bank with another
instrument (additional to the promised policy rate), the announced
threshold. The greater the size of the recessionary shock the lower the
optimal promised rate and the higher the optimal threshold (i.e. the
higher the probability of delivering the promised rate). While FG with an
EC is better than discretion for facing any zero-lower bound (ZLB)
situation, unconditional FG performs better than discretion only in the
most extreme of ZLB events.
Furthermore, even for very large recessionary shocks it is not optimal to
make unconditional promises.
Journal: Applied Economics
Pages: 1372-1381
Issue: 15
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100256
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100256
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Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1372-1381
Template-Type: ReDIF-Article 1.0
Author-Name: Jeungbo Shim
Author-X-Name-First: Jeungbo
Author-X-Name-Last: Shim
Author-Name: Eun-Joo Lee
Author-X-Name-First: Eun-Joo
Author-X-Name-Last: Lee
Author-Name: Seung-Hwan Lee
Author-X-Name-First: Seung-Hwan
Author-X-Name-Last: Lee
Title: A new test procedure for the choice of dependence structure in risk measurement: application to the US and UK stock market indices
Abstract:
The choice of an appropriate dependence structure in modelling
multivariate risks is an important issue because different tail structure
embedded in copula leads to a different capital requirement for the
institution. We present how to select a well-specified dependence
structure to given application data. Using a simple simulation technique,
we develop a statistical test to assess the adequacy of a specific
dependence structure. We examine the sensitivity of risk estimates to the
choice of copulas using the S&P 500 and FTSE 100 stock indices.
Journal: Applied Economics
Pages: 1382-1389
Issue: 15
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100257
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100257
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Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1382-1389
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Dluhosch
Author-X-Name-First: Barbara
Author-X-Name-Last: Dluhosch
Author-Name: Thorsten Hens
Author-X-Name-First: Thorsten
Author-X-Name-Last: Hens
Title: A rigorous approach to business services offshoring and North--North trade
Abstract:
Advances in information and communication technologies (ICTs) have gained
economy-wide importance and raised concerns that even within North--North
trade neither services nor high-skilled labour may be sheltered from
international competition. Rather, both may be increasingly susceptible to
offshoring. We present a novel theoretical framework for analysing
offshoring with a focus on skilled labour in managing value-added chains.
Thoroughly modelling demand and supply allows to explicitly track cause
and effects. Accordingly, effects of business service offshoring are
completely different and more diverse than those of material offshoring,
with the effects inter alia depending on whether triggered by trade
integration or ICT.
Journal: Applied Economics
Pages: 1390-1401
Issue: 15
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100259
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100259
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Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1390-1401
Template-Type: ReDIF-Article 1.0
Author-Name: Anton Bekkerman
Author-X-Name-First: Anton
Author-X-Name-Last: Bekkerman
Author-Name: Gregory Gilpin
Author-X-Name-First: Gregory
Author-X-Name-Last: Gilpin
Title: Crime and punishment: the role of student body characteristics in schools’ disciplinary behaviours
Abstract:
Discretion in schools’ discipline choices can provide an efficient
and effective misconduct management structure, but could lead to
discipline based on unrelated factors. Consequently, schools’
disciplinary decisions can significantly limit students’ access to
education by removing students from familiar learning environments. We
investigate schools’ disciplinary decisions for serious misconducts
and show that punishments are more severe in schools that do not report
misconducts to local law enforcement agencies. Moreover, we show that
schools that report fewer misconducts to law enforcement impose more
severe punishments when the student body is characterized as having a
higher proportion of minority students, lower socioeconomic status
students and a higher proportion of students who are below the 15th
percentile of standardized test scores. These results suggest that
between-school punishment differentials are associated with student body
traits.
Journal: Applied Economics
Pages: 1402-1415
Issue: 15
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100260
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100260
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Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1402-1415
Template-Type: ReDIF-Article 1.0
Author-Name: Daisuke Tsuruta
Author-X-Name-First: Daisuke
Author-X-Name-Last: Tsuruta
Title: Natural or unnatural selection? The end of lending relationships for small businesses
Abstract:
We investigate the situation where small business borrowers and banks end
their lending relationships. If credit allocation is efficient, banks
terminate their relationships with risky borrowers. Alternatively, small
business borrowers are more likely to end their relationships when they
have poor investment opportunities and do not require borrowed funds.
However, if the soft budget constraints of banks or credit crunches are a
significant problem, banks are likely to continue their relationships with
risky firms or end their relationships with nonrisky firms, which is
representative of an unnatural credit allocation. Using Japanese
firm-level data, we show empirically that these relationships end
naturally, with natural credit allocation supported even during the recent
global financial crisis.
Journal: Applied Economics
Pages: 1416-1428
Issue: 15
Volume: 48
Year: 2016
Month: 3
X-DOI: 10.1080/00036846.2015.1100262
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100262
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Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1416-1428
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: GenFu Feng
Author-X-Name-First: GenFu
Author-X-Name-Last: Feng
Author-Name: Shao-Lin Ning
Author-X-Name-First: Shao-Lin
Author-X-Name-Last: Ning
Title: Does higher government debt link to higher social expenditure? New method, new evidence
Abstract:
Scholars believe that higher social expenditures are usually linked with
higher government debts, whereas higher debts reduce social expenditures.
However, it is reasonable to speculate that higher government debt may
contribute to higher social spending, while fiscal deficits occur during a
recession, which commonly creates greater demand for social expenditure.
For a deeper investigation, this paper revisits the dynamic relationship
between social spending and public debts in the time-frequency domain,
using the novel wavelet-coherency analysis as well as the phase-difference
technique to derive the co-moved and causal relationships between social
spending and public debts in 13 OECD countries. The evidence identifies a
dynamic relationship between variables. While higher social expenditures
increase government debts, the shocks from government debts to social
expenditures are conversely uncertain. We discover that higher government
debt does reduce social expenditures, but it may be linked to higher
social spending. The robustness of partial coherency and phase-difference
discovers the role of a political party in the decision over social
welfare programmes in the sample countries.
Journal: Applied Economics
Pages: 1429-1451
Issue: 16
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1044745
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1044745
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Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1429-1451
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Scott W. Hegerty
Author-X-Name-First: Scott W.
Author-X-Name-Last: Hegerty
Author-Name: Dan Xi
Author-X-Name-First: Dan
Author-X-Name-Last: Xi
Title: Third-country exchange rate volatility and Japanese--US trade: evidence from industry-level data
Abstract:
As an important economic power globally as well as within Asia, Japan is
susceptible to fluctuations in the yen versus both the dollar and its
neighbours’ currencies. The resulting risk, from both sources,
might, therefore, have important effects on Japanese trade. This study
incorporates third-country exchange rate volatility (both yen-renminbi and
dollar-renminbi) into a reduced form trade model for industry trade
between the US and Japan. As was the case with a previous study that did
not include these effects, our cointegration analysis finds that most
industries are unaffected by risk. Third-country effects are, however,
significant in a number of cases. Interestingly, a large share of US
industries find that exports increase due to third-country risk,
suggesting that this volatility is encouraging traders to reorient their
trade markets by substitution.
Journal: Applied Economics
Pages: 1452-1462
Issue: 16
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1100264
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1100264
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Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1452-1462
Template-Type: ReDIF-Article 1.0
Author-Name: Ignacio Cazcarro
Author-X-Name-First: Ignacio
Author-X-Name-Last: Cazcarro
Author-Name: Rosa Duarte
Author-X-Name-First: Rosa
Author-X-Name-Last: Duarte
Author-Name: Julio Sánchez Chóliz
Author-X-Name-First: Julio
Author-X-Name-Last: Sánchez Chóliz
Author-Name: Cristina Sarasa
Author-X-Name-First: Cristina
Author-X-Name-Last: Sarasa
Author-Name: Ana Serrano
Author-X-Name-First: Ana
Author-X-Name-Last: Serrano
Title: Modelling regional policy scenarios in the agri-food sector: a case study of a Spanish region
Abstract:
The agri-food industry has several features of great importance for
sustainable economic growth in rural areas. The objective of this work is
to evaluate the effects associated with different scenarios of growth, and
changes in the regional agri-food industry. These scenarios simulate
changes in exports and imports, changes in technology and changes in the
level of industrial integration. We develop a computable general
equilibrium model calibrated for the region. Our results indicate that
policies trying to improve the competitiveness and dynamism of strategic
sectors as the agro-industrial complex in this regional economy exert
positive effects on its growth and income, having notable impacts on local
job markets but also in other sectors and activities linked through the
whole production chain.
Journal: Applied Economics
Pages: 1463-1480
Issue: 16
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1102842
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102842
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Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1463-1480
Template-Type: ReDIF-Article 1.0
Author-Name: Ankinée Kirakozian
Author-X-Name-First: Ankinée
Author-X-Name-Last: Kirakozian
Title: The determinants of household recycling: social influence, public policies and environmental preferences
Abstract:
Our article aims at understanding the determinants of households’
selective waste-sorting behaviours, based on data from an original survey
of 694 individuals in the French Provence--Alpes--Côte d’Azur
region. The applied literature focuses mainly on countries with high
recycling rates. We focus on a region with the lowest recycling rate in
France, a country that recycles less than the European country average. We
first apply polychoric principal components analysis to reduce the number
of explanatory variables to a set of six factors. In a second step, we use
a probit model to estimate the probability of waste sorting as a function
of these factors. This model tests several hypotheses emerging from the
recent literature on behavioural economics applied to households’
selective sorting. This literature pays particular attention to the social
influence on recycling behaviour, which has been studied mostly by
sociologists and psychologists. The results of our empirical analysis
confirm some of the findings in the literature. However, they also
highlight some unique features, such as social influences having a
negative impact on recycling. This finding contrasts with most of the
literature, which finds a positive relationship of social influence on
pro-environmental behaviour.
Journal: Applied Economics
Pages: 1481-1503
Issue: 16
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1102843
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102843
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Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1481-1503
Template-Type: ReDIF-Article 1.0
Author-Name: Ann Veiderpass
Author-X-Name-First: Ann
Author-X-Name-Last: Veiderpass
Author-Name: Maureen McKelvey
Author-X-Name-First: Maureen
Author-X-Name-Last: McKelvey
Title: Evaluating the performance of higher education institutions in Europe: a nonparametric efficiency analysis of 944 institutions
Abstract:
Although a long tradition exists of studying the economics of education,
performance comparisons of different kinds have traditionally been
difficult to undertake. An important impediment has been the lack of
comparable data. To a large extent, this study remedies the shortcomings
of earlier studies. Our contribution is twofold. First, the current higher
education policy of contraction and economizing, common to most European
countries, make knowledge of potential efficiency gains crucial. Second, a
unique database allows us to study a broad diversity of organizations as
well as organizations located in a number of different European countries.
The study suggests evaluating higher education institution (HEI)
performance in a production theory context, applying the well-known data
envelopment analysis (DEA) method to a cross section of 944 HEIs in 17
European countries. The DEA approach is particularly suitable in this
context where little is known about production technologies and economic
behaviour of the HEIs. On average, provision of education is found to be
most efficient in the Slovak Republic followed by Belgium and Latvia,
while Denmark and Norway display the lowest efficiency. The study also
indicates a positive relation between efficiency and HEI size and
efficiency and research intensity. Furthermore, the study points to the
importance of continued data collection.
Journal: Applied Economics
Pages: 1504-1514
Issue: 16
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1102844
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102844
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Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1504-1514
Template-Type: ReDIF-Article 1.0
Author-Name: Yuhuan Zhao
Author-X-Name-First: Yuhuan
Author-X-Name-Last: Zhao
Author-Name: Song Wang
Author-X-Name-First: Song
Author-X-Name-Last: Wang
Author-Name: Jiaqin Yang
Author-X-Name-First: Jiaqin
Author-X-Name-Last: Yang
Author-Name: Zhonghua Zhang
Author-X-Name-First: Zhonghua
Author-X-Name-Last: Zhang
Author-Name: Ya Liu
Author-X-Name-First: Ya
Author-X-Name-Last: Liu
Title: Input-output analysis of carbon emissions embodied in China-Japan trade
Abstract:
Energy-related CO2 emissions embodied in international trade
have been widely studied by researchers all over the world. By using the
bilateral trade input--output (BTIO) approach, this study investigates the
CO2 emissions embodied in China--Japan trade during 1995--2009
and attempts to identify the driving forces for the change in
CO2 emissions embodied in China’s exports to Japan
during that period by using structural decomposition analysis (SDA).
Result shows that CO2 emissions embodied in China’s
exports increased by about 100% from 1995 to 2009, whereas those embodied
in China’s imports increased by about 500% during the same period.
Result of this research also reveals that the scale effect had a large
influence on the increase in CO2 emissions embodied in
China--Japan trade. The technical effect greatly decreased CO2
emissions embodied in China’s exports to Japan, but obviously
increased those embodied in imports. The influence of the structural
effect was relatively small and insignificant in the change of
CO2 emissions embodied in China’s exports to Japan, but
was notable in the change of emissions embodied in imports.
Journal: Applied Economics
Pages: 1515-1529
Issue: 16
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1102845
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102845
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1515-1529
Template-Type: ReDIF-Article 1.0
Author-Name: Łukasz Goczek
Author-X-Name-First: Łukasz
Author-X-Name-Last: Goczek
Author-Name: Bartosz Witkowski
Author-X-Name-First: Bartosz
Author-X-Name-Last: Witkowski
Title: Determinants of card payments
Abstract:
Although the development of the card payment system allows for lowering
the costs of money circulation and thereby leads to significant economic
gains, relatively small amount of research has been dedicated to the
analysis of the determinants of this development. Therefore, the aim of
the article is to seek cross-country determinants of retail card payments
focusing on trust in the system. The article concentrates on two
econometric models. One is constructed with the use of representative
population survey data for Poland, the other is based on panel data from
the EU countries in the years 2000--2012.
Journal: Applied Economics
Pages: 1530-1543
Issue: 16
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1102846
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102846
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Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1530-1543
Template-Type: ReDIF-Article 1.0
Author-Name: Yener Kandogan
Author-X-Name-First: Yener
Author-X-Name-Last: Kandogan
Title: Economic development, cultural differences and FDI
Abstract:
The literature has long analysed the effects of national cultural distance
on the volume of cross-border FDIs. Considering the increase in
significance of FDI originating from developing countries, this study
compares the effect of cultural differences on the stock of FDI from and
to countries of various levels of economic development to explain how
economic development affects the impact of cultural distance on FDI.
Results suggest that the cultural differences tend to be bigger barriers
for multinationals from developing countries, but they also learn quickly
how to deal with such differences.
Journal: Applied Economics
Pages: 1545-1559
Issue: 17
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1102847
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102847
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Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1545-1559
Template-Type: ReDIF-Article 1.0
Author-Name: Cheng Cheng
Author-X-Name-First: Cheng
Author-X-Name-Last: Cheng
Title: Does simplifying divorce and marriage registration matter? Evidence from China
Abstract:
This article evaluates the marital consequences of easier access to
divorce and marriage by exploiting a major policy change in China that
simplifies both. I first use a regression discontinuity design to examine
the short-run effect and find that simplified registration immediately
triggered more and faster divorces and marriages. In estimating the
long-run effect, I adopt a difference-in-differences strategy that further
exploits cross-sectional variation in urbanization rate. Results indicate
that the positive effect on marital outcomes, especially on marriage rate,
persisted in the medium run for 4 years.
Journal: Applied Economics
Pages: 1560-1572
Issue: 17
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1102848
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102848
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Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1560-1572
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Author-Name: Li Qin
Author-X-Name-First: Li
Author-X-Name-Last: Qin
Title: Linear time-varying regression with a DCC-GARCH model for volatility
Abstract:
This article provides a new linear state space model with time-varying
parameters for forecasting financial volatility. The volatility estimates
obtained from the model by using the US stock market data almost exactly
match the realized volatility. We further compare our model with
traditional volatility models in the ex post volatility forecast
evaluations. In particular, we use the superior predictive ability and the
reality check for data snooping. Evidence can be found supporting that our
simple but powerful regression model provides superior forecasts for
volatility.
Journal: Applied Economics
Pages: 1573-1582
Issue: 17
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1102853
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1102853
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Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1573-1582
Template-Type: ReDIF-Article 1.0
Author-Name: Miroslav Verbič
Author-X-Name-First: Miroslav
Author-X-Name-Last: Verbič
Author-Name: Marko Ogorevc
Author-X-Name-First: Marko
Author-X-Name-Last: Ogorevc
Title: Ownership and corporate wage policy: the signal and its strength
Abstract:
We argue that identification and proper specification of ownership links
among firms is an important factor and is affecting firm performance on
different dimensions. We focus on the corporate wage policy, where we show
that firms with same stockholders have similar average labour costs after
controlling for standard factors of the wage equation. Moreover, we
propose new measures of stockholders’ ability to influence
firms’ decision; signal and its strength. The signal measures
stockholder’s preferences over a given corporate policy, while the
strength function describes stockholder’s ability to influence a
firms’ corporate policy.
Journal: Applied Economics
Pages: 1583-1590
Issue: 17
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1103037
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1103037
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Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1583-1590
Template-Type: ReDIF-Article 1.0
Author-Name: Syed Hasanat Shah
Author-X-Name-First: Syed Hasanat
Author-X-Name-Last: Shah
Author-Name: Mohsin Hasnain Ahmad
Author-X-Name-First: Mohsin Hasnain
Author-X-Name-Last: Ahmad
Author-Name: Qazi Masood Ahmed
Author-X-Name-First: Qazi Masood
Author-X-Name-Last: Ahmed
Title: The nexus between sectoral FDI and institutional quality: empirical evidence from Pakistan
Abstract:
This study investigates short- and long-run bidirectional causality
between institutional quality and sectoral-level FDI in Pakistan by using
the ARDL technique. The results confirm that long-run bidirectional
causality exists between institutional quality and aggregate FDI. The
in-depth sectoral-level FDI analysis substantiates the presence of
long-run bidirectional causality between institutional quality and FDI in
services and manufacturing sectors, while no long-run causality is
observed between institutional quality and FDI inflows in primary sector.
Furthermore, the results in the study reveal short-run bidirectional
causality only between institutional quality and manufacturing FDI and
report insignificant short-run causal link between institutional quality
and FDI in primary and services sectors. The overall findings of the study
suggest that in the long-run institutional quality attract FDI and FDI
inflows, particularly to manufacturing and services sectors, significantly
enhance the quality of institutions in Pakistan.
Journal: Applied Economics
Pages: 1591-1601
Issue: 17
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1103039
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1103039
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Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1591-1601
Template-Type: ReDIF-Article 1.0
Author-Name: Hestia Jacomina Stoffberg
Author-X-Name-First: Hestia Jacomina
Author-X-Name-Last: Stoffberg
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: Asset correlations in single factor credit risk models: an empirical investigation
Abstract:
The internal ratings--based (IRB) approach (based on a single risk factor
model) was designed by the Basel Committee on Banking Supervision (BCBS)
to determine banks’ regulatory credit risk capital. Key inputs of
the model -- asset correlations -- are prescribed by the regulator;
relevant banks must use them for capital determination. To ascertain
whether these correlations are too onerous or too lenient, empirical asset
correlations embedded in loss data spanning different loss milieu were
backed out of the regulatory model. Static and rolling correlations over a
period of time were compared with the prescribed correlations for
developed and developing economies and found to be significantly more
conservative.
Journal: Applied Economics
Pages: 1602-1617
Issue: 17
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1103040
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1103040
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Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1602-1617
Template-Type: ReDIF-Article 1.0
Author-Name: Divya Srivastava
Author-X-Name-First: Divya
Author-X-Name-Last: Srivastava
Author-Name: Alistair McGuire
Author-X-Name-First: Alistair
Author-X-Name-Last: McGuire
Title: The determinants of access to health care and medicines in India
Abstract:
This article explores the issue of demand for health care and medicines in
India where household share of total health expenditure is one of the
highest among high- and low-income countries. Previous work found that
important determinants include health status, socio-demographics, income
and demand for care was inelastic. Compared with previous studies, this
article uses large household data sets including data on medicine
expenditure to explore health-seeking behaviour. Count models find that
determinants include health status, socio-demographic information, health
insurance, household expenditure and government regulation. Elasticities
range from −0.13 to 0.03 and are generally consistent with
literature findings. For inpatient care, conditional on having at least
one hospitalization, the expected number of hospitalizations increases
with being male and household expenditure. Medicine expenditure accounts
for a large share of household health expenditure. Low-income individuals
could experience problems and raises important policy implications on the
demand and supply side to improve access to health care and medicines for
patients in India.
Journal: Applied Economics
Pages: 1618-1632
Issue: 17
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105921
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105921
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Handle: RePEc:taf:applec:v:48:y:2016:i:17:p:1618-1632
Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Granderson
Author-X-Name-First: Gerald
Author-X-Name-Last: Granderson
Author-Name: Helen Tauchen
Author-X-Name-First: Helen
Author-X-Name-Last: Tauchen
Title: The impacts of membership in multi-hospital systems on cost, productivity growth and technical change
Abstract:
We examine whether affiliation in a multi-hospital system contributes to
higher rates of total factor productivity (TFP) growth, technological
progress and cost efficiency. With a 1996 to 1999 panel of 248 US
hospitals (some are private nonprofit (church-related and other nonprofit)
and the remaining are public (government, nonfederal)), empirical results
indicate that urban system member hospitals experienced higher rates of
both TFP growth and technical progress than the rates of TFP growth and
technical progress experienced by urban nonsystem hospitals. Rural system
member hospitals experienced smaller rates of both TFP decline and
technical regress than the rates of TFP decline and technical regress
experienced by rural nonsystem hospitals.
Journal: Applied Economics
Pages: 1633-1646
Issue: 18
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105922
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105922
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Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1633-1646
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Nguimkeu
Author-X-Name-First: Pierre
Author-X-Name-Last: Nguimkeu
Title: Some effects of business environment on retail firms
Abstract:
This paper empirically tests how formal retail entrepreneurs’
perception about the business environment in Cameroon affects the
performance of the retail sector. I use business owners’ responses
from the 2009 Enterprise Survey to estimate an econometric model that
corrects for heteroscedasticity. The results show that regulation costs,
corruption, credit constraints, and lack of infrastructure negatively
affect the gross margins of firms. In contrast, the competition of the
informal sector -- perceived by many formal entrepreneurs as a major
constraint -- is positively associated with the gross margins of formal
firms. Policy implications are discussed.
Journal: Applied Economics
Pages: 1647-1654
Issue: 18
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105923
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105923
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Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1647-1654
Template-Type: ReDIF-Article 1.0
Author-Name: K. Lopatta
Author-X-Name-First: K.
Author-X-Name-Last: Lopatta
Author-Name: M. Tchikov
Author-X-Name-First: M.
Author-X-Name-Last: Tchikov
Title: Do microfinance institutions fulfil their promise? Evidence from cross-country data
Abstract:
The concept of microfinance promises poverty reduction and economic
growth. We empirically challenge this economic and social promise in an
attempt to prove its fulfilment. Our multivariate regressions of economic
development variables such as per capita gross national income based on
PPP converted to international dollars (GNI per capita PPP), GDP growth,
as well as gross capital formation and labour participation rate against
specific microfinance institutions’ (MFI) variables show that the
success and performance of MFIs significantly influence economic
development. Microfinance directly influences economic growth through the
value that MFI performance adds to purchasing power. An indirect impact
comes from an improvement in capital accumulation and employment rates.
These insights are valuable as the interdependencies between microfinance
and economic development that this article verifies offer new and
progressive insights into purposeful action that can be taken to stimulate
economic development and growth. Targeted development programmes as well
as socially responsible investments can be applied in developing economies
in order to strengthen their growth and alleviate poverty.
Journal: Applied Economics
Pages: 1655-1677
Issue: 18
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105924
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105924
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Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1655-1677
Template-Type: ReDIF-Article 1.0
Author-Name: Samar K. Guharay
Author-X-Name-First: Samar K.
Author-X-Name-Last: Guharay
Author-Name: Gaurav S. Thakur
Author-X-Name-First: Gaurav S.
Author-X-Name-Last: Thakur
Author-Name: Fred J. Goodman
Author-X-Name-First: Fred J.
Author-X-Name-Last: Goodman
Author-Name: Scott L. Rosen
Author-X-Name-First: Scott L.
Author-X-Name-Last: Rosen
Author-Name: Daniel Houser
Author-X-Name-First: Daniel
Author-X-Name-Last: Houser
Title: Integrated data-driven analytics to identify instability signatures in nonstationary financial time series
Abstract:
With the objective of identifying instability signatures of the financial
system, this article integrates two classes of data-driven techniques. The
first class of techniques is utilized to investigate macroeconomic
behaviour by aggregating an ensemble of heterogeneous nonstationary
time-series data and the second class of techniques examines the local
dynamics of the microstructures in each time series. Moving window
principal component analysis (PCA) and functional PCA (fPCA) are shown to
extract collective signatures of the financial system for understanding
macroeconomic behaviour, and the Synchrosqueezing and Markov switching
techniques are used to study local dynamics within each individual time
series. The integrated data analytics successfully identifies the diverse
events from 1986 to 2012. All events, both major and minor, have been
identified by fPCA. The major economic events, especially the 2008 Great
Recession, along with several minor events, showed a strong leading
indicator in the density index derived from Synchrosqueezing. The
capability of this integrated analytics suite is demonstrated in this
article, and it motivates further studies encompassing data sets from
broader sectors. As a complement to existing model-driven approach, this
would lead to achieving a robust and reliable method that can help in
taking measures to avoid catastrophic collapse in the constantly evolving
financial system.
Journal: Applied Economics
Pages: 1678-1694
Issue: 18
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105925
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105925
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Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gausden
Author-X-Name-First: Robert
Author-X-Name-Last: Gausden
Author-Name: Mohammad S. Hasan
Author-X-Name-First: Mohammad S.
Author-X-Name-Last: Hasan
Title: Would information on consumer confidence have helped to predict UK household expenditure during the recent economic crisis?
Abstract:
The objective is to investigate whether access to data on consumer
confidence would have aided forecasts of the growth of UK household
consumption expenditure over the recent period of economic crisis. A
disaggregated study is performed on the basis that consideration is given
not only to household spending in total but also to expenditure on each of
durable goods, semi-durable goods, nondurable goods and services. The
empirical analysis demonstrates how modifications which are made to the
harmonized indicator of the European Commission are able to enhance
predictive accuracy. However, the benefit which is derived from consulting
consumer survey data does not extend to an earlier interval over which the
behaviour of consumer sentiment was far less volatile.
Journal: Applied Economics
Pages: 1695-1709
Issue: 18
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105926
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105926
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Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1695-1709
Template-Type: ReDIF-Article 1.0
Author-Name: M. Ryan Haley
Author-X-Name-First: M. Ryan
Author-X-Name-Last: Haley
Title: A ranking of journals for the aspiring health economist
Abstract:
This article identifies and ranks 104 journals that might logically serve
as the core for the interdisciplinary field of Health Economics. These
journals are identified by analysing approximately 15 000 articles
contained in the current CVs of 100 top health economists. Of the nearly
1200 journals spanned by these CVs, 104 journals were outlets for more
than five of these top health economists. The 104 journals are ranked
using eigenfactor and article influence scores as well as the percentile
rank for each journal within its Institute for Scientific Information
category. The primary intention is to create a broad-based journal list
that exposes possible research outlets for aspiring health economists and
to report the relative rankings of such outlets using established metrics.
Journal: Applied Economics
Pages: 1710-1718
Issue: 18
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105927
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105927
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Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1710-1718
Template-Type: ReDIF-Article 1.0
Author-Name: S. P. Chakravarty
Author-X-Name-First: S. P.
Author-X-Name-Last: Chakravarty
Author-Name: D. D. Thomakos
Author-X-Name-First: D. D.
Author-X-Name-Last: Thomakos
Author-Name: K. I. Nikolopoulos
Author-X-Name-First: K. I.
Author-X-Name-Last: Nikolopoulos
Title: Growth, deregulation and rent seeking in post-war British economy
Abstract:
Post-war political consensus about the need for government action to
rectify market failure began to unravel in the 1970s, and even the need
for prudential control of banking and finance began to be challenged by
the start of the 1980s. Regulatory oversight was relaxed in the belief
that emerging techniques in financial engineering would render irrelevant
fears of sharp periodic downturns that have historically been the
consequence of lightly regulated finance. The outcome of this new policy,
embracing the idea of unregulated markets to deliver greater prosperity,
is disappointing. We find that the average growth rate of UK GDP and
output per person employed for three decades from the start of
liberalization was no greater than that in the previous three post-war
decades. Cyclical fluctuations were deeper. A remarkable feature of the
second period is the sharp rise in income inequality in favour of the very
top earners. An illusion of greater prosperity for a wider segment may
have been created in the second period due to asset price bubbles and
housing inflation.
Journal: Applied Economics
Pages: 1719-1729
Issue: 18
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105928
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105928
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Handle: RePEc:taf:applec:v:48:y:2016:i:18:p:1719-1729
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony J. Makin
Author-X-Name-First: Anthony J.
Author-X-Name-Last: Makin
Author-Name: Nicholas Rohde
Author-X-Name-First: Nicholas
Author-X-Name-Last: Rohde
Title: Macroeconomic effects of terms of trade fluctuations in commodity exporting advanced economies
Abstract:
The paper examines the impact of world commodity prices on national output
and trade balances in Australia, Canada, New Zealand, and Norway, OECD
economies that, unlike other advanced economies, are heavily dependent on
commodity exports. Contrary to Dutch disease theory based on real exchange
rate adjustment, it highlights the relative price effects of terms of
trade (ToT) changes on gross domestic product and net exports with
reference to the experience of this unique set of OECD countries. The
econometric analysis verifies key predictions of this alternative
perspective that ToT fluctuations should (i) have no significant short-run
impact on GDP and that (ii) due to relative price effects a strong
positive relationship between the ToT and net exports is unlikely.
Journal: Applied Economics
Pages: 1731-1742
Issue: 19
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105929
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105929
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Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1731-1742
Template-Type: ReDIF-Article 1.0
Author-Name: Bedassa Tadesse
Author-X-Name-First: Bedassa
Author-X-Name-Last: Tadesse
Author-Name: Roger White
Author-X-Name-First: Roger
Author-X-Name-Last: White
Title: Do immigrants affect the profile of U.S. exporters?
Abstract:
We highlight that an increase in the stock of immigrants corresponds with
greater numbers of U.S. firms that engage in exporting to foreign markets.
Our results are obtained from the estimation of a multi-level mixed
effects model. Overall, the effect of immigrants is relatively larger
among small- and medium-sized enterprises and is smaller among large-sized
enterprises. There are, however, considerable differences, both in the
magnitude and in nature of the observed effects of immigrants on
manufactured and non-manufactured goods exporters of comparable size
categories. Similarly, heterogeneity is found in the effects of immigrants
on the numbers of small-, medium-, and large-sized exporters across home
country cohorts that are grouped by World Bank income classifications and
by broad regional classifications of destination markets. These findings
imply that immigration has the potential to alter the profile of domestic
firms involved in exporting.
Journal: Applied Economics
Pages: 1743-1758
Issue: 19
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105930
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105930
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Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1743-1758
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Title: Another look at momentum crashes: momentum in the European Monetary Union
Abstract:
This article studies the profitability of a selection of prominent
momentum-based strategies in the European Monetary Union (EMU). In
contrast to past examples documenting the lack of profitability of
unconditional price momentum in the most recent decade, the current
research finds that unconditional price momentum yielded significant
positive payoffs. There is evidence of option-like behaviour for
strategies based on intermediate past performance. Surprisingly, there is
no such evidence for the momentum strategy based on recent past
performance.
Journal: Applied Economics
Pages: 1759-1766
Issue: 19
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1105931
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1105931
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Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1759-1766
Template-Type: ReDIF-Article 1.0
Author-Name: José Da Fonseca
Author-X-Name-First: José
Author-X-Name-Last: Da Fonseca
Author-Name: Peiming Wang
Author-X-Name-First: Peiming
Author-X-Name-Last: Wang
Title: A joint analysis of market indexes in credit default swap, volatility and stock markets
Abstract:
This paper analyses the joint dynamics of the CDS, volatility and stock
markets using both VAR and Markov regime-switching VAR models with market
index data. It shows that the joint behaviour of the three markets is
better characterized by the Markov model with two regimes corresponding to
low- and high-volatile market conditions. The relationship between changes
in the market indexes under a regime is consistent with theory and
persistent; the information transmission process of shocks to the markets
is similar for the two regimes with a more important role for CDS shock;
and the volatility in the money market is an important determinant of
regime-switching. The findings have practical implications, particularly
for hedging strategies with market indexes under different market
conditions.
Journal: Applied Economics
Pages: 1767-1784
Issue: 19
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109036
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109036
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Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1767-1784
Template-Type: ReDIF-Article 1.0
Author-Name: Selena Totić
Author-X-Name-First: Selena
Author-X-Name-Last: Totić
Author-Name: Miloš Božović
Author-X-Name-First: Miloš
Author-X-Name-Last: Božović
Title: Tail risk in emerging markets of Southeastern Europe
Abstract:
This article examines the left-tail behaviour of returns on stocks in
Southeastern Europe (SEE). We apply conditional extreme value theory (EVT)
approach on daily returns of six stock market indices from SEE between
2004 and 2013. Predictive performance of value-at-risk (VaR) and expected
shortfall (ES) based on EVT is compared against several alternatives, such
as historical simulation and analytical approach based on GARCH with a
single conditional distribution. Model backtesting with daily returns
shows that EVT-based models provide more reliable VaR and ES forecasts
than the alternative models in all six markets. Unlike the alternatives,
the EVT-based models cannot be rejected as VaR confidence level is
increased. This emphasizes the importance of extreme events in SEE markets
and indicates that the ability of a model to capture volatility clustering
accurately is not sufficient for a correct assessment of risk in these
markets.
Journal: Applied Economics
Pages: 1785-1798
Issue: 19
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109037
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109037
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Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1785-1798
Template-Type: ReDIF-Article 1.0
Author-Name: Pavel Ciaian
Author-X-Name-First: Pavel
Author-X-Name-Last: Ciaian
Author-Name: Miroslava Rajcaniova
Author-X-Name-First: Miroslava
Author-X-Name-Last: Rajcaniova
Author-Name: d’Artis Kancs
Author-X-Name-First: d’Artis
Author-X-Name-Last: Kancs
Title: The economics of BitCoin price formation
Abstract:
This is the first article that studies BitCoin price formation by
considering both the traditional determinants of currency price, e.g.,
market forces of supply and demand, and digital currencies specific
factors, e.g., BitCoin attractiveness for investors and users. The
conceptual framework is based on the Barro (1979) model, from which we
derive testable hypotheses. Using daily data for five years (2009--2015)
and applying time-series analytical mechanisms, we find that market forces
and BitCoin attractiveness for investors and users have a significant
impact on BitCoin price but with variation over time. Our estimates do not
support previous findings that macro-financial developments are driving
BitCoin price in the long run.
Journal: Applied Economics
Pages: 1799-1815
Issue: 19
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109038
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109038
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Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1799-1815
Template-Type: ReDIF-Article 1.0
Author-Name: David Ong
Author-X-Name-First: David
Author-X-Name-Last: Ong
Title: Education and income attraction: an online dating field experiment
Abstract:
Prior studies have found a robust correlation in the education of dating
and married couples. However, there is little evidence to suggest that
such correlations are causal, that is, for the sake of relationship public
goods such as the pleasures of the enlightened conversations that only a
common high level of education might support. Being empirical studies,
they cannot rule out couples matching on other characteristics like
income, height or health, which are correlated with education, from
driving results. We contribute to this literature by randomly assigning
high and low education and income levels to 388 artificial male and female
profiles on a large online dating website in China. We then counted
thousands of ‘visits’ -- clicks on abbreviated profiles,
which included education and income information, from search engine
results. We found that men’s visits to female profiles were
unaffected by the profile’s assigned education level, while
women’s visits to male profiles increase with the profile’s
education. However, that increase was not increasing on the women’s
own level of education, though their visits to the higher income male
profiles was increasing on their own education. Our findings suggest that
the relationship public goods that stem from a common level of high
education are not at the forefront of either men’s or
women’s minds before their first dates, when one might expect such
goods to play a critical role in the decision to develop the relationship
further.
Journal: Applied Economics
Pages: 1816-1830
Issue: 19
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109039
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109039
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Handle: RePEc:taf:applec:v:48:y:2016:i:19:p:1816-1830
Template-Type: ReDIF-Article 1.0
Author-Name: Khalid M. Kisswani
Author-X-Name-First: Khalid M.
Author-X-Name-Last: Kisswani
Title: Does oil price variability affect ASEAN exchange rates? Evidence from panel cointegration test
Abstract:
Using panel data, this article investigates the long-run relationship
between real oil prices and real exchange rates for selected ASEAN
countries by utilizing quarterly data from 1973:Q1 to 2013:Q4. The
modelling implementation starts with the determination of the stationarity
condition of the variables which are found to be integrated of order one.
Using Maddala and Wu’s (1999) panel cointegration test, the article
finds evidence of cointegration among the variables. The fully modified
OLS (FMOLS) and dynamic OLS (DOLS) are then used to estimate the long-run
relationship between the variables, followed by applying Toda--Yamamoto
causality test. The findings exhibit bidirectional causality between real
oil prices and real exchange rates in the long run, where it is highly
significant.
Journal: Applied Economics
Pages: 1831-1839
Issue: 20
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109040
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109040
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Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1831-1839
Template-Type: ReDIF-Article 1.0
Author-Name: Mejda Mahmoudi Akrout
Author-X-Name-First: Mejda Mahmoudi
Author-X-Name-Last: Akrout
Author-Name: Hakim Ben Othman
Author-X-Name-First: Hakim
Author-X-Name-Last: Ben Othman
Title: Environmental disclosure and stock market liquidity: evidence from Arab MENA emerging markets
Abstract:
The objective of this study is to examine the impact of environmental
disclosure levels on the stock market liquidity of Arab Middle Eastern and
North African (MENA) companies. For that, a self-constructed disclosure
index was applied to the annual reports for the years 2010, 2011 and 2012
and the bid-ask spread was used as a proxy for stock market liquidity.
Results indicate that levels of environmental disclosure in MENA companies
are quite low. In addition, using a sample of 276 firm-year observations,
multivariate analysis shows that the higher the level of environmental
disclosure provided in the annual reports, the lower the spread between
the market bid and ask prices, thereby indicating an increase in stock
market liquidity.
Journal: Applied Economics
Pages: 1840-1851
Issue: 20
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109041
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109041
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Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1840-1851
Template-Type: ReDIF-Article 1.0
Author-Name: Hildegunn Kyvik Nordås
Author-X-Name-First: Hildegunn Kyvik
Author-X-Name-Last: Nordås
Title: Does mutual recognition of qualifications stimulate services trade? The case of the European Union
Abstract:
This article analyses the services trade impact of recognition of
professional qualifications using a unique database compiled by the
European Commission. It observes that there is large variation in the
number of regulated professions across the EU. The number of recognitions
is small relative to total employment in regulated professions.
Nevertheless, a robust positive relationship between services trade and
recognition of qualifications is found. Recognition stimulates two-way
trade between the source and the host country, suggesting that arms-length
exports as well as cross-border outsourcing take place. Recognitions in
health and education professions are most strongly related to services
trade.
Journal: Applied Economics
Pages: 1852-1865
Issue: 20
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109042
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109042
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Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1852-1865
Template-Type: ReDIF-Article 1.0
Author-Name: Russell Kashian
Author-X-Name-First: Russell
Author-X-Name-Last: Kashian
Author-Name: Robert Drago
Author-X-Name-First: Robert
Author-X-Name-Last: Drago
Title: Fee or free checking? Noninterest checking account fees, competition and multimarket banking
Abstract:
This article analyses noninterest checking (NIC) account fees using a
unique data set covering 11 875 observations on 1880 banks from 2008
to 2012. These data identify whether the bank has free or fee checking on
NIC accounts and, where relevant, the fee and minimum balance to avoid the
fee. Appealing to shrouded equilibrium theory, we hypothesize that banks,
and particularly small banks, will avoid drawing the attention of myopic,
low-income types by having stable policies, or will attempt to confuse
depositors with contradictory policy shifts in the fee and minimum balance
requirements. Competition and small bank size should favour consumers, but
the meaning of ‘favour’ is complicated by large depositors
and the banks subsidizing small depositors with NIC accounts.The results
support the avoid attention hypothesis, particularly for single-market
banks, and weakly support the confuse depositors hypothesis. The largest
banks, including three too big to fail banks, are most responsive to
competition, with single-market banks far less responsive. Competition may
be responsible for a dramatic decline in free checking among the largest
banks, and substantial increases in minimum balances for those banks,
since these effectively reduced subsidies. Simultaneously, single-market
banks became more likely to offer free checking.
Journal: Applied Economics
Pages: 1866-1880
Issue: 20
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109043
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109043
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Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1866-1880
Template-Type: ReDIF-Article 1.0
Author-Name: Cristiana Donati
Author-X-Name-First: Cristiana
Author-X-Name-Last: Donati
Title: Firm growth and liquidity constraints: evidence from the manufacturing and service sectors in Italy
Abstract:
We use a large firm-level panel data set to analyse the relevance of
liquidity constraints on firm growth in Italy. In most European countries,
mainstream financial institutions are scantly able to provide affordable
credit facilities to small firms. Thus, these firms are forced to finance
their growth almost exclusively through retained earnings. We estimate a
dynamic version of Gibrat-law, incorporating cash flow as a measure of
financial constraints, for two different size classes within small and
medium size enterprises and for several industries in manufacturing and
service sectors. The findings show that, in general, small manufacturing
firms have higher growth-cash flow sensitivities with respect to medium
firms. Conversely, our results highlight, for the services, a significant
heterogeneity in the impact of liquidity constraints on firm growth. In
particular, the sensitivity of growth rates to the cash flow appears
relatively high for small firms belonging to Knowledge Intensive Business
Services. Validation of Gibrat-law in the services suggests that an
important group of industries, with a superior capacity of encouraging
firm’s competitiveness, need more financial resources to promote
their growth and that of the manufacturing sectors with whom they are
connected.
Journal: Applied Economics
Pages: 1881-1892
Issue: 20
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109044
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109044
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Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1881-1892
Template-Type: ReDIF-Article 1.0
Author-Name: Dong Hee Suh
Author-X-Name-First: Dong Hee
Author-X-Name-Last: Suh
Author-Name: Charles B. Moss
Author-X-Name-First: Charles B.
Author-X-Name-Last: Moss
Title: Dynamic interfeed substitution: implications for incorporating ethanol byproducts into feedlot rations
Abstract:
This study examines interfeed substitution with a focus on the
relationship between distiller’s dried grain with solubles (DDGS)
and traditional feed grains. The dynamic linear logit model is used for
the empirical analysis of interfeed substitution. The estimation results
reveal that an increase in livestock and poultry outputs reduces the
relative shares of corn and soybean meal to DDGS. The estimated adjustment
rate indicates that the demand for feed grains is responsive in the short
run with about 37% of the long-run response. This study also finds that
the demand for corn and soybean meal remains inelastic even in the long
run, showing the possibilities that livestock and poultry producers face
high feed costs in response to an increase in the prices of corn and
soybean meal. The pressures on feed costs can be alleviated by the
substitutable relationship between DDGS and corn, but the substitution of
DDGS for corn has a potential to provide livestock and poultry with
different nutritional contents.
Journal: Applied Economics
Pages: 1893-1901
Issue: 20
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109046
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109046
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Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1893-1901
Template-Type: ReDIF-Article 1.0
Author-Name: Takuya Hasebe
Author-X-Name-First: Takuya
Author-X-Name-Last: Hasebe
Title: Estimating the variance of decomposition effects
Abstract:
We derive the asymptotic variance of the Blinder--Oaxaca decomposition
effects. We show that the delta method approach that builds on the
assumption of fixed regressors understates true variability of the
decomposition effects when regressors are stochastic. Our proposed
variance estimator takes randomness of regressors into consideration. Our
approach is applicable to both the linear and nonlinear decompositions.
Previously, only a bootstrap method has been a valid option for nonlinear
decompositions. As our derivation follows the general framework of
m-estimation, it is straightforward to extend our variance estimator to a
cluster-robust variance estimator. We demonstrate the finite-sample
performance of our variance estimator with a Monte Carlo study and present
a real-data application.
Journal: Applied Economics
Pages: 1902-1913
Issue: 20
Volume: 48
Year: 2016
Month: 4
X-DOI: 10.1080/00036846.2015.1109047
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109047
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Handle: RePEc:taf:applec:v:48:y:2016:i:20:p:1902-1913
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojun Chu
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Chu
Author-Name: Chongfeng Wu
Author-X-Name-First: Chongfeng
Author-X-Name-Last: Wu
Author-Name: Jianying Qiu
Author-X-Name-First: Jianying
Author-X-Name-Last: Qiu
Title: A nonlinear Granger causality test between stock returns and investor sentiment for Chinese stock market: a wavelet-based approach
Abstract:
In this article, we re-examine the causality between the stock returns and
investor sentiment in China. The number of net added accounts is used as a
proxy for investor sentiment. To mimic the different investment horizons
of market participants, we use the wavelet method to decompose stock
returns and investor sentiment into time series with different
frequencies. Additionally, we test for nonlinear causal relationships
based on Taylor series approximation. Our results indicate that there is a
one-directional linear causality from stock returns to investor sentiment
on the original series, while there is a strong bi-directional nonlinear
causality between stock returns and investor sentiment at different
timescales.
Journal: Applied Economics
Pages: 1915-1924
Issue: 21
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1109048
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109048
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Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1915-1924
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Bollen
Author-X-Name-First: Bernard
Author-X-Name-Last: Bollen
Author-Name: Philip Gharghori
Author-X-Name-First: Philip
Author-X-Name-Last: Gharghori
Title: How is β related to asset returns?
Abstract:
Existing empirical evidence for the relevance of the
β in modelling asset returns is mixed. Drawing on
conditional tests of β first proposed by
Pettengill, Sundaram and Mathur (1995) and extended by Bollen (2010),
empirical evidence employing monthly data is presented that indicates that
β is highly related to variability of asset returns
but not to the level of asset returns. This result is consistent with the
predictions of the market model but not with the predictions of the CAPM.
It is concluded that β remains a useful construct
in financial economics but may have a differing role in financial
economics than the conventional wisdom asserts.
Journal: Applied Economics
Pages: 1925-1935
Issue: 21
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111985
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111985
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Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1925-1935
Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova
Author-X-Name-First: Petra
Author-X-Name-Last: Maresova
Author-Name: Hana Mohelska
Author-X-Name-First: Hana
Author-X-Name-Last: Mohelska
Author-Name: Kamil Kuca
Author-X-Name-First: Kamil
Author-X-Name-Last: Kuca
Title: Social and family load of Alzheimer’s disease
Abstract:
As the World Health Organization reports, mental illnesses have a serious
impact on more than 25% of all population people worldwide at some time
during their lives. Mental illnesses are universal; they affect people of
any age, both women and men, the rich and the poor, no matter from which
urban and rural environment they come from. Mental illnesses have an
enormous economic effect on societies and on the quality of
people’s life, including their families. The purpose of this study
is to describe social and economic aspects of Alzheimer’s disease
(AD) with respect to the early diagnosis. The authors provide an analysis
of costs of treatment and care in the selected countries where the data
from the available studies are recalculated into comparable quantities.
Furthermore, the authors analyse aspects and possibilities of care for
patients with AD in the informal (home) environment in compliance with
individual phases of this disease. In the article, the method of research
of available sources focusing on social and economic issues of AD is used.
In order to compare costs of treatment and care of the AD patients, the
Qualitative Comparative Analysis Method is exploited. The analyses have
shown that the metric systems for monitoring the direct and indirect costs
for the individual phases of AD are different.
Journal: Applied Economics
Pages: 1936-1948
Issue: 21
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111986
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111986
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Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1936-1948
Template-Type: ReDIF-Article 1.0
Author-Name: Hoda El-Enbaby
Author-X-Name-First: Hoda
Author-X-Name-Last: El-Enbaby
Author-Name: Rana Hendy
Author-X-Name-First: Rana
Author-X-Name-Last: Hendy
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: Do SPS measures matter for margins of trade? Evidence from firm-level data
Abstract:
According to the World Trade Organization (WTO) standards, countries are
allowed to adapt regulations under the Sanitary and phyto-sanitary (SPS)
and technical barriers to trade (TBT) agreements in order to protect
human, animal and plant health, as well as environment and human safety.
Yet, these measures can become an impediment in international trade,
especially for developing countries. Therefore, using an Egyptian
firm-level data set and a new database on specific trade concerns raised
in the TBT and SPS committees at the WTO, we analyse the effects of
product standards on two related aspects: first, the probability to export
(firm-product extensive margin), and second, the value exported
(firm-product intensive margin). We merge this data set with a new
database on specific trade concerns raised in the TBT and SPS committees
at the WTO. Our main findings show that SPS measures imposed on Egyptian
exporters have a negative impact on the probability of exporting a new
product to a new destination. By contrast, the intensive margin of exports
is not significantly affected by such measures.
Journal: Applied Economics
Pages: 1949-1964
Issue: 21
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111987
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111987
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Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1949-1964
Template-Type: ReDIF-Article 1.0
Author-Name: Michelle S. Segovia
Author-X-Name-First: Michelle S.
Author-X-Name-Last: Segovia
Author-Name: Marco A. Palma
Author-X-Name-First: Marco A.
Author-X-Name-Last: Palma
Title: Buying your way into a healthier lifestyle: a latent class analysis of healthy food purchases
Abstract:
A nonhypothetical second-price Vickrey auction was conducted to elicit
consumer preferences and willingness-to-pay (WTP) for vegetable
attributes, including production technique, origin, taste and health
benefits. Using a latent class analysis (LCA) we segmented participants
based on health-driven motivations, WTP estimates and socio-economic
characteristics. Two latent classes were found and characterized as:
‘Health Conscious’ and ‘Health Redeemers’. In
particular, the ‘Health Conscious’ consumers presented
healthy lifestyle habits, expressed price premiums for domestic and
local-specialty food products after a blind tasting treatment, but they
did not have price premiums for health benefits of the products. On the
contrary, the ‘Health Redeemers’ presented unhealthy
lifestyles but they were willing to pay more for healthy food products,
perhaps in an attempt to make up for their unhealthy habits.
Journal: Applied Economics
Pages: 1965-1977
Issue: 21
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111988
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111988
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Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1965-1977
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Pedraja-Chaparro
Author-X-Name-First: Francisco
Author-X-Name-Last: Pedraja-Chaparro
Author-Name: Daniel Santín
Author-X-Name-First: Daniel
Author-X-Name-Last: Santín
Author-Name: Rosa Simancas
Author-X-Name-First: Rosa
Author-X-Name-Last: Simancas
Title: The impact of immigrant concentration in schools on grade retention in Spain: a difference-in-differences approach
Abstract:
Since the late 1990s, Spain has played host to a sizeable flow of
immigrants who have been absorbed into the compulsory stage of the
education system. In this article, our aim is to assess the impact of that
exogenous increase in the number of immigrant students from 2003 to 2009
on grade retention using Spanish data from PISA 2003 and 2009. For this
purpose, we use the difference-in-differences method as a dose treatment
capable of detecting whether the immigrant concentration has had a
significant effect on student performance. Our results evidenced that
their arrival does not on average decrease school promotion rates with
respect to 2003 and is even beneficial to native students. However,
although the concentration of immigrant students at the same school does
have a negative impact on immigrant students generating more grade
retention, native students are unaffected until concentrations of
immigrant students is above 15%.
Journal: Applied Economics
Pages: 1978-1990
Issue: 21
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111989
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111989
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Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1978-1990
Template-Type: ReDIF-Article 1.0
Author-Name: Mahfuz Kabir
Author-X-Name-First: Mahfuz
Author-X-Name-Last: Kabir
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Is trade in electrical and electronic products sensitive to IPR protection? Evidence from China’s exports
Abstract:
This article attempts to provide the first empirical evidence on the
effect of intellectual property rights (IPRs) on China’s export of
electrical and electronic products. It adopts a gravity model for
unbalanced panel data of China’s 146 important trading partners
over the period of 2002--2012. To eliminate the effects of FDI in
determining the linkage between IPR and exports, the panel excludes the
destination countries and territories that invest in China. The results
reveal that the level of IPR protection in destination countries has a
positive impact on China’s flow of exports. Further analysis on
data disaggregated by IPR score demonstrates that a higher level of IPR
protection in destination countries and territories is positively linked
with China’s exports of these items in each of the IPR protection
clusters and indicates a strong market power effect by the interplay
between R&D expenditure and IPR in the destinations. Finally, both market
power and market expansion effects are found to be prevalent in the
destinations, as implied by the coefficient of IPR protection
disaggregated by income level of China’s export destinations. The
results generally resemble those in the literature that describe the
linkage between IPR protection and trade flows.
Journal: Applied Economics
Pages: 1991-2005
Issue: 21
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111990
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111990
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Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1991-2005
Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Anagnostidis
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Anagnostidis
Author-Name: George Papachristou
Author-X-Name-First: George
Author-X-Name-Last: Papachristou
Author-Name: Nikos S. Thomaidis
Author-X-Name-First: Nikos S.
Author-X-Name-Last: Thomaidis
Title: Liquidity commonality in order-driven trading: evidence from the Athens Stock Exchange
Abstract:
We examine the presence of liquidity commonality in the order-driven
Athens Stock Exchange (ASE). Unlike the majority of liquidity commonality
studies that focus on the bid--ask spread, our analysis extends deeper in
the Limit Order Book, providing insight on the price impact of both small
and large trades. We utilize a 6-month FTSE/ATHEX-20 intraday data set to
estimate the liquidity factor model of Chordia et al. (2000). To this end,
we conduct single-equation analysis as well as panel data analysis with
the use of two-way clustered errors, correcting for simultaneous firm and
time correlations. Moreover, we apply standard principal component
analysis on stock liquidities to extract the marketwide liquidity
component. We find that liquidity commonality is low at the bid--ask
spread, whereas it increases deeper in the book; consequently, large
traders face liquidity risks associated with both individual stock and
marketwide illiquidity. Moreover, our empirical evidence hints that
liquidity commonality is asynchronous, suggesting that the ASE trading
process includes various levels of information speed. Our analysis
contributes to the understanding of liquidity commonality in order-driven
trading, especially in emerging markets like the ASE where trading
activity is limited and information speed is low.
Journal: Applied Economics
Pages: 2007-2021
Issue: 22
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111991
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111991
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Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2007-2021
Template-Type: ReDIF-Article 1.0
Author-Name: Elina De Simone
Author-X-Name-First: Elina
Author-X-Name-Last: De Simone
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: Rhetoric on the economy: have European parties changed their economic messages?
Abstract:
This study analyses the determinants of dispersion of economic issue
mentions in European party manifestos. We examined three main economic
domains (governmental control of the economy, free market capitalism and
support for the welfare state) as consequences of globalization forces,
economic conditions, partisanship and electoral turnout. Employing
aggregate-level Comparative Manifesto Project (CMP) data from legislative
elections in 15 European countries from 1970 to 2010, we confirm that
parties hold a common view of the salience of economic control of the
state as a consequence of globalization pressure and economic growth
levels. Partisanship of the cabinets (regardless of the political
orientation) counteracted issue salience concentration in the welfare
domain. Government size favoured dispersion in the free market realm. Our
results do not indicate clear homogenization of parties’ economic
messages in elections over the last 40 years.
Journal: Applied Economics
Pages: 2022-2036
Issue: 22
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111992
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111992
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Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2022-2036
Template-Type: ReDIF-Article 1.0
Author-Name: Štefan Lyócsa
Author-X-Name-First: Štefan
Author-X-Name-Last: Lyócsa
Author-Name: Igor Fedorko
Author-X-Name-First: Igor
Author-X-Name-Last: Fedorko
Title: What drives intermediation costs? A case of tennis betting market
Abstract:
We demonstrate that there is a considerable variation in bookmaker margins
across matches, time and bookmakers. Our results imply that using match,
tournament and players’ characteristics explains the variations in
margins hence, they can be helpful in managing intermediation cost in a
market of state-contingent assets: fixed-odds betting markets. We also
provide evidence that bookmakers protect themselves by increasing odds on
the favourite player, thus attracting more bettors to the favourite
player, while deterring bettors from betting on the underdog by reducing
the odds. By that process, bookmakers are possibly sacrificing a portion
of their margin.
Journal: Applied Economics
Pages: 2037-2053
Issue: 22
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1111993
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1111993
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Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2037-2053
Template-Type: ReDIF-Article 1.0
Author-Name: Ruwan Jayathilaka
Author-X-Name-First: Ruwan
Author-X-Name-Last: Jayathilaka
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: Jayatilleke S. Bandaralage
Author-X-Name-First: Jayatilleke S.
Author-X-Name-Last: Bandaralage
Title: Is there a link between alcohol consumption and the level of poverty?
Abstract:
In many developing countries, in addition to household income, there are a
number of other socio-economic determinants of poverty. One such hidden
socio-economic factor is alcohol consumption and some studies argue that
there is a link between alcohol consumption and poverty. The main aim of
this study is to measure the effects of alcohol consumption on the level
of poverty in a systematic way. Using Sri Lanka as a case study, this
article demonstrates that the consumption of various types of alcoholic
beverages, particularly, the illegal beverages, has a significant positive
association with the level of poverty. The findings of this study suggest
that, in Sri Lanka, the consumption of illegal alcoholic beverages
increases the likelihood of being in a poor household by 2--3%. The
results of this study also find that households who are characterized as
nonpoor but are just above the poverty line behave more like the poor
rather than the nonpoor in terms of alcohol consumption. Some of the
conclusions from this Sri Lankan case study can be applied to other
developing countries.
Journal: Applied Economics
Pages: 2054-2063
Issue: 22
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114574
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114574
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Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2054-2063
Template-Type: ReDIF-Article 1.0
Author-Name: Marina Barboza Camargo
Author-X-Name-First: Marina Barboza
Author-X-Name-Last: Camargo
Author-Name: Carlos Roberto Azzoni
Author-X-Name-First: Carlos Roberto
Author-X-Name-Last: Azzoni
Title: Deciding on large scale investments
Abstract:
This study analyses the importance of investment factors across investment
sizes and the frequency of large investment decisions within the firms. We
use data from 1442 investment decisions made by 226 Brazilian firms
between 1997 and 2010. The results indicate that the influence of
investment factors is different for investments of different sizes. The
results also indicate that the increase in the frequency of large-scale
investment decisions made by the firm influences especially the role of
cash flow, diminishing its importance as an investment factor. This result
allows one to argue that, probably, firms more experienced in large-scale
decisions could be bolder in their decision-making process, relying less
on the accumulation of funds through cash flow.
Journal: Applied Economics
Pages: 2064-2077
Issue: 22
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114575
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114575
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Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2064-2077
Template-Type: ReDIF-Article 1.0
Author-Name: G. Lesur-Irichabeau
Author-X-Name-First: G.
Author-X-Name-Last: Lesur-Irichabeau
Author-Name: O. Guyader
Author-X-Name-First: O.
Author-X-Name-Last: Guyader
Author-Name: M. Frésard
Author-X-Name-First: M.
Author-X-Name-Last: Frésard
Author-Name: C. Leroy
Author-X-Name-First: C.
Author-X-Name-Last: Leroy
Author-Name: K. Latouche
Author-X-Name-First: K.
Author-X-Name-Last: Latouche
Author-Name: L. Le Grel
Author-X-Name-First: L.
Author-X-Name-Last: Le Grel
Title: Information on sellers and buyers characteristics: added value to explain price formation at primary fish markets in managed French scallop fisheries
Abstract:
The aim of this article is to explore, through a hedonic approach, the
factors that might explain the price variability for the French-managed
fishery of scallop at primary fish markets. In addition to factors
classically identified in the current literature like intrinsic product
characteristics or markets situation, the characteristics of operators are
tested. The relationships of loyalty between sellers and buyers, and
market assiduity are notably considered.
Journal: Applied Economics
Pages: 2078-2092
Issue: 22
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114576
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114576
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Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2078-2092
Template-Type: ReDIF-Article 1.0
Author-Name: Stephan Marette
Author-X-Name-First: Stephan
Author-X-Name-Last: Marette
Author-Name: Jayson L. Lusk
Author-X-Name-First: Jayson L.
Author-X-Name-Last: Lusk
Author-Name: F. Bailey Norwood
Author-X-Name-First: F. Bailey
Author-X-Name-Last: Norwood
Title: Choosing for others
Abstract:
Experiments conducted in the US and France were used to study how
individuals make trade-offs between health and taste for themselves and
others. When someone receives a choice made for them that differs from
their preference, they experience a welfare loss; at least in the
short-term. We measure the empirical magnitude of this loss, and suggest
it play a role in assessing the desirability of paternalistic policies
motivated by behavioural economics. We show that the welfare loss changes
with the provision of new information and the impact of this information
differs for the two countries.
Journal: Applied Economics
Pages: 2093-2111
Issue: 22
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114577
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114577
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Handle: RePEc:taf:applec:v:48:y:2016:i:22:p:2093-2111
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin M. Zhao
Author-X-Name-First: Kevin M.
Author-X-Name-Last: Zhao
Title: Short sale constraints and information-driven short selling: evidence on NASDAQ
Abstract:
This article examines the impact of the NASDAQ’s bid test rule on
the information content of short sales surrounding the U.S. Security
Exchange Commission introduction of the pilot programme in 2005. It shows
that abnormal short selling prior to analyst recommendation changes were
very informative when stocks were restricted by the bid test rule. Such
informativeness of short selling disappears when the bid test rule was
temporarily suspended for pilot stocks. The results are robust after
controlling for various factors that may contribute to this anomaly. Both
the shorting efficiency hypothesis and the regulatory concern hypothesis
are developed to provide explanations for this anomaly. Additional tests
show that the regulatory concern is more consistent with the data.
Journal: Applied Economics
Pages: 2113-2124
Issue: 23
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114578
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114578
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Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2113-2124
Template-Type: ReDIF-Article 1.0
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Title: Renegotiation on incomplete procurement contracts
Abstract:
This article examines the impact of incomplete contracts on procurement
costs in road construction auctions. Ex ante contracts in
these auctions often fail to specify all of the potential construction
contingencies, and consequently, changes in scope are necessary after
construction begins. Using Vermont road construction contract data, this
study finds evidence that there is a statistically significant difference
in costs of firms between auctions with and without extra work
adjustments. Substantial adaptation costs are responsible for the higher
procurement outlays in incomplete contract. I also find that bidders
inflate their bids to incorporate risk premiums in incomplete contracts;
however, my estimates suggest that this bidding behaviour does not affect
their profit margins.
Journal: Applied Economics
Pages: 2125-2138
Issue: 23
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114579
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114579
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Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2125-2138
Template-Type: ReDIF-Article 1.0
Author-Name: María Lorena Marí Del Cristo
Author-X-Name-First: María Lorena
Author-X-Name-Last: Marí Del Cristo
Author-Name: Marta Gómez-Puig
Author-X-Name-First: Marta
Author-X-Name-Last: Gómez-Puig
Title: Fiscal sustainability and dollarization: the case of Ecuador
Abstract:
This article tries to disentangle the dynamic relationships between fiscal
variables and economic activity in a small emerging economy characterized
by full dollarization, namely, Ecuador. We find that fiscal policy in
Ecuador seems to be sustainable, explained by its policy of debt payment
through oil revenues, rather than by a fiscal discipline that
dollarization is supposed to encourage. The non-oil tax revenues variable
is a purely adjusting variable. This result suggests that in a dollarized
country that cannot benefit from the ‘seignorage’ revenues,
the reliance on volatile oil revenues and on smoothing tax revenues leaves
the economy’s fiscal sustainability vulnerable.
Journal: Applied Economics
Pages: 2139-2155
Issue: 23
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114580
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114580
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Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2139-2155
Template-Type: ReDIF-Article 1.0
Author-Name: Amalia Morales-Zumaquero
Author-X-Name-First: Amalia
Author-X-Name-Last: Morales-Zumaquero
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: A contribution to the empirics of convergence in real GDP growth: the role of financial crises and exchange-rate regimes
Abstract:
This paper investigates the convergence in real gross domestic product
growth focusing on the impact of financial crises (i.e. banking crises,
currency crises and debt crises) and nominal exchange-rate regimes (i.e.
fixed, intermediate and flexible) on convergence. To that end, we compute
four convergence indicators (σ-convergence,
γ-convergence, absolute
β-convergence and conditional
β-convergence) for 163 countries classified into
four income groups during the period 1970--2011. The results suggest that
(i) there is evidence in favour of σ-convergence
and γ-convergence only for high-income countries;
(ii) absolute and conditional β-convergence are
present in each of the four income groups of the countries under study;
(iii) exchange-rate regimes seem to play some role in upper-middle and
lower-middle-income countries; and (iv) financial crises have a negative
and significant impact on GDP growth independently of the income level of
the countries.
Journal: Applied Economics
Pages: 2156-2169
Issue: 23
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114581
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114581
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Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2156-2169
Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: The motor vehicle industry in an emerging nation: the case of Brazil
Abstract:
As in other emerging nations, in Brazil, the motor vehicle industry is
considered to be strategically important for economic development because
of its backward and forward linkages and possibilities for export-led
growth. This study analyses prospects for the industry by estimating an
industry-level cost function that includes output of both vehicles and
component parts with capital, labour and intermediate goods as inputs. The
cost elasticity of output (an indicator of scale properties) and the
elasticity relationships among inputs are explored. One unexpected outcome
of the work that appears to be robust is that during early years of the
study period, the industry had constant returns or even diseconomies of
scale. However, during later years, when output was greater, there were
economies of scale. This finding is likely the result of some combination
of the entry of new firms, the development of new models or technological
change. The study concludes that if firm output can be increased,
economies of scale can be expected to strengthen the position of the
Brazilian industry in the international marketplace.
Journal: Applied Economics
Pages: 2170-2182
Issue: 23
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1114582
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1114582
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Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2170-2182
Template-Type: ReDIF-Article 1.0
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Author-Name: Gerd Zika
Author-X-Name-First: Gerd
Author-X-Name-Last: Zika
Title: Labour market forecasting in Germany: is disaggregation useful?
Abstract:
This paper examines whether labour market forecasts can be improved by
using disaggregated information. We construct vector-autoregressive models
for employment by sector in order to produce out-of-sample forecasts of
aggregate employment. Forecast accuracy is compared to univariate models
by using Clark/West tests. In an application to German data, it is evident
that disaggregation significantly improves the employment forecast.
Moreover, using fluctuation-window tests we find that disaggregation
yields superior results especially in phases with strong and sustained
employment changes.
Journal: Applied Economics
Pages: 2183-2198
Issue: 23
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117044
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117044
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Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2183-2198
Template-Type: ReDIF-Article 1.0
Author-Name: Hyeongwoo Kim
Author-X-Name-First: Hyeongwoo
Author-X-Name-Last: Kim
Author-Name: Wen Shi
Author-X-Name-First: Wen
Author-X-Name-Last: Shi
Author-Name: Kwang-Myoung Hwang
Author-X-Name-First: Kwang-Myoung
Author-X-Name-Last: Hwang
Title: Estimating interest rate setting behaviour in Korea: a constrained ordered choices model approach
Abstract:
We study the Bank of Korea’s interest rate setting behaviour using
an array of constrained ordered choices models, where the Monetary Policy
Committee revises the target policy interest rate only when the current
market interest rate deviates from the optimal rate by more than certain
threshold values. Our models explain changes in the monetary policy stance
well for the monthly frequency Korean data since January 2000. We find
important roles for the output gap and the foreign exchange rate in
understanding the Bank of Korea’s rate decision-making process. We
also implement out-of-sample forecast exercises with September 2008
(Lehman Brothers Bankruptcy) for a split point. We demonstrate that
out-of-sample predictability improves greatly for the rate cut and the
rate hike decisions using SE-adjusted inaction bands.
Journal: Applied Economics
Pages: 2199-2214
Issue: 23
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117045
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117045
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Handle: RePEc:taf:applec:v:48:y:2016:i:23:p:2199-2214
Template-Type: ReDIF-Article 1.0
Author-Name: Hing Lin Chan
Author-X-Name-First: Hing Lin
Author-X-Name-Last: Chan
Author-Name: Kai-Yin Woo
Author-X-Name-First: Kai-Yin
Author-X-Name-Last: Woo
Title: An investigation into the dynamic relationship between international and China’s crude oil prices
Abstract:
This article studies the dynamic relationship between international (WTI,
Brent and Dubai) and domestic (Da Qing) crude oil prices in China using
threshold cointegration method. We find evidence of a long-run equilibrium
relationship between each pair of international and Da Qing oil prices,
favouring the market integration hypothesis. We also estimate asymmetric
adjustments under the momentum threshold autoregressive (M-TAR)
specification in a TVECM, and the results show that adjustments to
eliminate disequilibrium happen faster when oil price spread increases
than when it decreases. The long-run and short-run Granger causality tests
support the notion that China has influence on the international oil
markets. The results imply that China should open up its domestic and
imported oil markets, and also establish a well-functioning crude oil
futures market, as they are essential for arbitrage and hedging
strategies.
Journal: Applied Economics
Pages: 2215-2224
Issue: 24
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117046
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117046
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Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2215-2224
Template-Type: ReDIF-Article 1.0
Author-Name: Zhihua Ding
Author-X-Name-First: Zhihua
Author-X-Name-Last: Ding
Author-Name: Lingyun He
Author-X-Name-First: Lingyun
Author-X-Name-Last: He
Author-Name: Caicai Feng
Author-X-Name-First: Caicai
Author-X-Name-Last: Feng
Author-Name: Wenbo Li
Author-X-Name-First: Wenbo
Author-X-Name-Last: Li
Title: The impact of coal price fluctuations on China’s economic output
Abstract:
Due to the important role of coal in China’s macroeconomic growth,
the price of coal significantly influences its economic output. Employing
a VAR model, a cointegration test and a state-space model of time-varying
variables, this article analyses the influence of coal price fluctuations
on the volume and structure of China’s economic output, including
both the strength and the time delay of such influence. This article
further explores the corresponding relationships between coal price
fluctuations and variations in the effects of these fluctuations to
analyse the asymmetric influence of coal price fluctuations on
China’s macroeconomy. Coal price fluctuations exerted significant
long-term positive effects and short-term negative effects on
China’s output variables, with an average delay of 11 months;
they had positive effects on investment and consumption over the long term
and an increasingly negative effect on imports and exports. The average
delays were 9 months for investment, 6.5 months for consumption
and 10 months for imports and exports. There was an asymmetric
correlation between coal price fluctuations and the time-varying
elasticity of their impact on GDP. The results in this study are
consistent with the actual operating circumstances of the Chinese economy.
Journal: Applied Economics
Pages: 2225-2237
Issue: 24
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117047
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117047
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Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2225-2237
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada C. Álvarez
Author-X-Name-First: Inmaculada C.
Author-X-Name-Last: Álvarez
Author-Name: Javier Barbero
Author-X-Name-First: Javier
Author-X-Name-Last: Barbero
Title: The public sector and convergence with spatial interdependence: empirical evidence from Spain
Abstract:
We propose a framework to analyse convergence between regions,
incorporating the public sector and technological knowledge spillovers in
the context of a Neoclassical Growth Model. Second, we apply novel
estimation methods pertaining to the spatial econometrics literature
introducing a spatial Durbin panel data model based on instrumental
variables and maximum-likelihood estimation. Our model makes it possible
to analyse, in terms of convergence, the results obtained in Spanish
regions with the policies implemented during the period 1980--2011. The
results support the idea that education and fiscal policies have a
positive effect on regional development and cohesion. Therefore, we can
conclude that it is possible to obtain better results for regional
convergence with higher rates of public investment in education and tax
revenues. We also obtain interesting results that confirm the existence of
spillover effects in economic growth and public policies, identifying
their magnitude and significance.
Journal: Applied Economics
Pages: 2238-2252
Issue: 24
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117048
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117048
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2238-2252
Template-Type: ReDIF-Article 1.0
Author-Name: W. Attavanich
Author-X-Name-First: W.
Author-X-Name-Last: Attavanich
Title: Did the Thai rice-pledging programme improve the economic performance and viability of rice farming?
Abstract:
This article evaluates impacts of the rice-pledging programme on the
economic performance and viability of rice farming in Thailand. It also
investigates whether the effects of the programme are heterogeneous across
different farm types using the propensity score matching technique to
address the self-selection bias in the farm-level data set. We found that
the programme enhanced the economic performance less than hoped for.
Overall, the programme was estimated to improve the net direct farm income
for participating farms by $175.12--$194.82 per hectare. Taking
into account the heterogeneous effects of the programme across farm types,
we calculated that the greatest effects may be realized by farmers within
the small farms subsample, at $404.41--$439.85 per hectare, but
only $139.80--$213.36 per hectare for midsize farms, and
$138.82--$173.34 per hectare for large farms. With regard to the
economic viability of the programme, we discovered that it had an
insignificant effect on farm modernization investment initiatives. Thus,
future strategies incorporated into the programme that better control
increases in production costs, improve small farmers’ access to the
programme and require participating farms to spend a portion of the money
received on farm modernization may improve long-run benefits of the
programme.
Journal: Applied Economics
Pages: 2253-2265
Issue: 24
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117049
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117049
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Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2253-2265
Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Bebczuk
Author-X-Name-First: Ricardo
Author-X-Name-Last: Bebczuk
Author-Name: Eduardo Cavallo
Author-X-Name-First: Eduardo
Author-X-Name-Last: Cavallo
Title: Is business saving really none of our business?
Abstract:
This paper revisits the role of business saving in the economy by
critically scrutinizing the existing macroeoconomic and corporate finance
literatures. We assemble and exploit a broad international, unbalanced
panel of 47 countries over 1995--2013 on saving and investment by
institutional sector to shed new light on the relevance of business saving
for private saving and investment around the world. We show that
businesses contribute on average more than 50% of national saving around
the world. Using this unique dataset, we find evidence of partial piercing
of the corporate veil: a $1 increase in business saving gives rise to a
decrease of approximately $0.40 in household saving--thereby raising
private saving by as much as $0.60. We also find that a $1 increase in
business saving increases private investment by as much as $0.20 in
countries where limited financing is a binding constraint on firms’
investment. The evidence suggests that business saving and external
financing are complementary sources of financing for
investment.
Journal: Applied Economics
Pages: 2266-2284
Issue: 24
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117050
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117050
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2266-2284
Template-Type: ReDIF-Article 1.0
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Title: State-dependent risk and M&A
Abstract:
During economic contractions, the asset and capital structures of firms
are more likely to deviate from their optimal levels. Target firms, in
particular, are more susceptible to such deviations. I study how such
deviations affect the bidding firms’ acquisition decision. I find
that bidders abstain from taking over targets when the debts and growth
options of the targets are over their optimal levels. Further, I show that
bidders are more likely to pay a low premium for such targets. Both
results are pronounced when the aggregate economy has had a bad shock;
these results are associated with higher risks because of the excessive
levels of debts and growth options. Overall, these results uncover the
impact of the targets’ abnormal debts and growth options on the
bidders’ acquisitions, contingent on the state of the economy.
Journal: Applied Economics
Pages: 2285-2300
Issue: 24
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117051
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117051
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2285-2300
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Ahdi N. Ajmi
Author-X-Name-First: Ahdi N.
Author-X-Name-Last: Ajmi
Author-Name: Ghassen El Montasser
Author-X-Name-First: Ghassen
Author-X-Name-Last: El Montasser
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Research output and economic growth in G7 countries: new evidence from asymmetric panel causality testing
Abstract:
Recent studies have shown increasing interest on the relationship between
research output and economic growth. The study of such a relationship is
not only of theoretical interest, but it can also influence specific
policies to improve the quality, and probably the quantity of research
output. This article has studied this relationship in G7 countries using
the asymmetric panel causality test of Hatemi-J (2011). Our results show
that only the UK shows a causal relationship from the output of research
to real GDP. However, when the signs of variations are taken into account,
there is an asymmetric causality running from negative research output
shocks to negative real GDP shocks.
Journal: Applied Economics
Pages: 2301-2308
Issue: 24
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1117052
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1117052
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2301-2308
Template-Type: ReDIF-Article 1.0
Author-Name: Rabindra Nepal
Author-X-Name-First: Rabindra
Author-X-Name-Last: Nepal
Author-Name: Antonio Carvalho
Author-X-Name-First: Antonio
Author-X-Name-Last: Carvalho
Author-Name: John Foster
Author-X-Name-First: John
Author-X-Name-Last: Foster
Title: Revisiting electricity liberalization and quality of service: empirical evidence from New Zealand
Abstract:
What effect does the firm structure have on the quality of service
delivered by networks and infrastructure industries? We answer this
question by empirically assessing the impacts of complete vertical
separation, such as ownership unbundling, on the quality of service
delivered by a liberalized network industry. Electricity distribution
utilities in New Zealand are considered for this purpose and are analysed
using panel-data econometrics. The results show robust evidence that
ownership unbundling contributed to a fall in the duration and frequency
of supply interruptions in electricity distribution. However, the results
also show that unbundling has no effect on reducing distribution network
losses. These results, overall, highlight the nonsimple impacts of
ownership unbundling on the quality of electricity distribution. We
suggest that the quality of service may largely improve when considered in
the economic regulation of electricity networks than completely relying on
specific reform measures such as ownership unbundling.
Journal: Applied Economics
Pages: 2309-2320
Issue: 25
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1119789
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119789
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Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2309-2320
Template-Type: ReDIF-Article 1.0
Author-Name: Peiwen Bai
Author-X-Name-First: Peiwen
Author-X-Name-Last: Bai
Author-Name: Wenli Cheng
Author-X-Name-First: Wenli
Author-X-Name-Last: Cheng
Title: Labour misallocation in China: 1980--2010
Abstract:
This article measures labour misallocation in Chinese provinces over the
period 1980--2010 and investigates possible causal factors of the
misallocation. It finds that: (1) labour misallocation fell substantially
in the first half of 1980s, but there was no monotonic trend of
improvement since then. (2) Wage differentials cross primary, secondary
and tertiary sectors accounted for a substantial portion of measured
overall labour misallocation; the secondary sector’s wage
deviations from value of the marginal product of labour (VMPL) also
contributed to labour misallocation. (3) There was persistence in labour
misallocation, but a higher level of urbanization, the development of the
tertiary sector, increasing trade openness and the growth of the nonstate
sector appear to have contributed to more efficient labour allocation.
Journal: Applied Economics
Pages: 2321-2332
Issue: 25
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1119790
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119790
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2321-2332
Template-Type: ReDIF-Article 1.0
Author-Name: V. Aevskiy
Author-X-Name-First: V.
Author-X-Name-Last: Aevskiy
Author-Name: V. Chetverikov
Author-X-Name-First: V.
Author-X-Name-Last: Chetverikov
Title: A discrete time model of convergence for the term structure of interest rates in the case of entering a monetary union
Abstract:
This paper presents a method for constructing the term structure of
interest rate spreads for two currencies in the context of a
country’s entry into a monetary union. We propose a special type of
process that ensures the convergence of the short-term interest rate
spread to zero by a fixed moment in time, which we call the discrete-time
Brownian bridge process. Using this process and the conventional pricing
kernel framework, we derive double recursive formulas for computing the
affine coefficients for the term structure of interest rate spread. The
estimated model counterpart, which is based on the pre-EMU interest rate
spread data for the interest rates of the German mark and Italian lira,
fits the data reasonably well and captures the stylized empirical facts.
Namely, spreads for all maturities have downward trends, and the longer
the maturity is, the less spread there is.
Journal: Applied Economics
Pages: 2333-2340
Issue: 25
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1119791
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119791
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Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2333-2340
Template-Type: ReDIF-Article 1.0
Author-Name: M. D. Parra
Author-X-Name-First: M. D.
Author-X-Name-Last: Parra
Author-Name: I. Martinez-Zarzoso
Author-X-Name-First: I.
Author-X-Name-Last: Martinez-Zarzoso
Author-Name: C. Suárez-Burguet
Author-X-Name-First: C.
Author-X-Name-Last: Suárez-Burguet
Title: The impact of FTAs on MENA trade in agricultural and industrial products
Abstract:
This article analyses the impact of Free Trade Agreements (FTAs) on Middle
East and North African Countries (MENA) trade for the period 1994--2010.
The analysis distinguishes between industrial and agricultural trade to
take into account the different liberalization schedules. An augmented
gravity model is estimated using up-to-date panel data techniques to
control for all time-invariant bilateral factors that influence bilateral
trade as well as for the so-called multilateral resistance factors. We
also control for the endogeneity of the agreements and test for
self-selection bias due to the presence of zero trade in our sample. The
main findings indicate that North--South-FTAs and South--South-FTAs have a
differential impact in terms of increasing trade in MENA countries, with
the former being more beneficial in terms of exports for MENA countries,
but both showing greater global market integration. We also find that FTAs
that include agricultural products, in which MENA countries have a clear
comparative advantage, have more favourable effects for these countries
than those only including industrial products.
Journal: Applied Economics
Pages: 2341-2353
Issue: 25
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1119792
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119792
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Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2341-2353
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Arnade
Author-X-Name-First: Carlos
Author-X-Name-Last: Arnade
Author-Name: Fred Kuchler
Author-X-Name-First: Fred
Author-X-Name-Last: Kuchler
Author-Name: Linda Calvin
Author-X-Name-First: Linda
Author-X-Name-Last: Calvin
Title: The changing role of consumers and suppliers in a food safety event: the 2006 foodborne illness outbreak linked to spinach
Abstract:
This article provides a means for testing whether buyers or sellers are
responsible for a drop in sales following a market shock. We show that
suppliers’ responses dominated the market reaction to the 2006 US
Food and Drug Administration warning to avoid fresh spinach contaminated
with potentially deadly bacteria Escherichia coli
O157:H7. A modified Durbin-Wu-Hausman test for temporary price endogeneity
is developed and used in a leafy green vegetable demand model. Test
results indicate the price of bagged spinach was exogenous before the
announcement but endogenous for approximately 12 weeks afterward. We
show these results are consistent with the notion that suppliers
temporarily limited the availability of spinach to consumers. Instead of
consumers choosing the quantity purchased given exogenous prices, it was
suppliers who limited the quantity marketed and consumers’ choices
established the market price.
Journal: Applied Economics
Pages: 2354-2366
Issue: 25
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1119793
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119793
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2354-2366
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Nielsen Rotta
Author-X-Name-First: Pedro Nielsen
Author-X-Name-Last: Rotta
Author-Name: Pedro L. Valls Pereira
Author-X-Name-First: Pedro L.
Author-X-Name-Last: Valls Pereira
Title: Analysis of contagion from the dynamic conditional correlation model with Markov Regime switching
Abstract:
Over the last decades, the transmissions of international financial events
have been the subject of many academic studies focused on multivariate
volatility models. This study evaluates the financial contagion between
stock market returns. The econometric model employed, regime switching
dynamic correlation (RSDC). A modification was made in the original RSDC
model, the introduction of the GJR-GARCH-N and also
GJR-GARCH-t models, on the equation of conditional
univariate variances, thus allowing us to capture the asymmetric effects
in volatility and also heavy tails. A database was built using series of
indices in the United States (S&P500), the United Kingdom (FTSE100),
Brazil (IBOVESPA) and South Korea (KOSPI) from 1 February 2003 to 20
September 2012. Throughout this study the methodology is compared with
those frequently found in literature, and the model RSDC with two regimes
was defined as the most appropriate for the selected sample with
t-Student distribution in the disturbances. The adapted
RSDC model used in this article can be used to detect contagion --
considering the definition of financial contagion from the World Bank
called very restrictive -- with the help of the empirical exercise.
Journal: Applied Economics
Pages: 2367-2382
Issue: 25
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1119794
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119794
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Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2367-2382
Template-Type: ReDIF-Article 1.0
Author-Name: Hyein Shim
Author-X-Name-First: Hyein
Author-X-Name-Last: Shim
Author-Name: Hyeyoen Kim
Author-X-Name-First: Hyeyoen
Author-X-Name-Last: Kim
Author-Name: Sunghyun Kim
Author-X-Name-First: Sunghyun
Author-X-Name-Last: Kim
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Testing the relative purchasing power parity hypothesis: the case of Korea
Abstract:
This study examines the relative purchasing power parity (PPP) hypothesis
using the data from the Korean won--US dollar and the Korean won--Japanese
yen foreign exchange markets. We extract proxies for inflation from stock
market returns of Korea, the United States and Japan based on the method
used by Chowdhry, Roll and Xia in 2005. We explicitly test the relative
PPP hypothesis in light of the short-run price volatility using monthly,
bimonthly and quarterly data from 1 January 1998 to 31 December 2012. Our
findings suggest that the empirical test results from the entire sample
period do not support the relative PPP hypothesis. However, the results
from the sample period excluding the Asian Financial Crisis period show
that the relative PPP hypothesis holds for the Korean won--US dollar
market with a moderate magnitude of inflation impact, but not for the
Korean won--Japanese yen market. Abrupt changes in exchange rates during
the crisis period may have affected the relationship between inflation and
exchange rates. This result also suggests that factors other than
inflation might have affected the Korean won--Japanese yen exchange rate.
Journal: Applied Economics
Pages: 2383-2395
Issue: 25
Volume: 48
Year: 2016
Month: 5
X-DOI: 10.1080/00036846.2015.1119795
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1119795
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:25:p:2383-2395
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Pino
Author-X-Name-First: Gabriel
Author-X-Name-Last: Pino
Author-Name: Dilara Tas
Author-X-Name-First: Dilara
Author-X-Name-Last: Tas
Author-Name: Subhash C. Sharma
Author-X-Name-First: Subhash C.
Author-X-Name-Last: Sharma
Title: An investigation of the effects of exchange rate volatility on exports in East Asia
Abstract:
This study investigates the effects of the exchange rate volatility on the
export flows of Indonesia, Malaysia, Republic of Korea, Singapore,
Thailand, and the Philippines during 1974--2011. Towards this goal a trade
weighted real effective (rather than the bilateral) exchange rate and
three different measures of volatility, i.e. obtained from an ARCH model,
a GARCH model and a moving-average standard deviation measure are used in
this study. Specifically, the export flows between six Asian countries and
the rest of the world are investigated rather than focusing on trade with
only one country. Our findings reveal that the exchange rate volatility
has a significant impact on export flows in the short run as well as in
the long run for all the countries in the sample. The impact in the long
run is predominantly negative with the exception of Singapore, but in the
short run the impact varies across countries. Moreover, our results are
robust to the alternative measures of volatility used and most of the
findings in the long run and short run are also robust to the crisis
period.
Journal: Applied Economics
Pages: 2397-2411
Issue: 26
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1122730
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122730
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Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2397-2411
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick T. Kanda
Author-X-Name-First: Patrick T.
Author-X-Name-Last: Kanda
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Pejman Bahramian
Author-X-Name-First: Pejman
Author-X-Name-Last: Bahramian
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Forecasting South African inflation using non-linearmodels: a weighted loss-based evaluation
Abstract:
The conduct of inflation targeting is heavily dependent on accurate
inflation forecasts. Non-linear models have increasingly featured, along
with linear counterparts, in the forecasting literature. In this study, we
focus on forecasting South African inflation by means of non-linear models
and using a long historical dataset of seasonally adjusted monthly
inflation rates spanning from 1921:02 to 2013:01. For an emerging market
economy such as South Africa, non-linearities can be a salient feature of
such long data, hence the relevance of evaluating non-linear
models’ forecast performance. In the same vein, given the fact that
1969:10 marks the beginning of a protracted rising trend in South African
inflation data, we estimate the models for an in-sample period of
1921:02--1966:09 and evaluate 1, 4, 12, and 24 step-ahead forecasts over
an out-of-sample period of 1966:10--2013:01. In addition, using a weighted
loss function specification, we evaluate the forecast performance of
different non-linear models across various extreme economic environments
and forecast horizons. In general, we find that no competing model
consistently and significantly beats the LoLiMoT’s performance in
forecasting South African inflation.
Journal: Applied Economics
Pages: 2412-2427
Issue: 26
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1122731
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122731
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Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2412-2427
Template-Type: ReDIF-Article 1.0
Author-Name: Lorna Katusiime
Author-X-Name-First: Lorna
Author-X-Name-Last: Katusiime
Author-Name: Frank W. Agbola
Author-X-Name-First: Frank W.
Author-X-Name-Last: Agbola
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Title: Exchange rate volatility--economic growth nexus in Uganda
Abstract:
The global financial crisis has disrupted trade and capital flows in most
developing economies, resulting in an increased volatility of exchange
rates. We develop an autoregressive distributed lag model to investigate
the effect of exchange rate volatility on economic growth in Uganda. Using
data spanning the period 1960--2011, we find that exchange rate volatility
positively affects economic growth in Uganda in both the short run and the
long run. However, in the short run, political instability negatively
moderates the exchange rate volatility--economic growth nexus. These
results are robust to alternative specifications of the economic growth
model.
Journal: Applied Economics
Pages: 2428-2442
Issue: 26
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1122732
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122732
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Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2428-2442
Template-Type: ReDIF-Article 1.0
Author-Name: Sizhong Sun
Author-X-Name-First: Sizhong
Author-X-Name-Last: Sun
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Title: Interrelationship among foreign presence, domestic sales and export intensity in Chinese manufacturing industries
Abstract:
Using panel data on six Chinese manufacturing industries over the period
2005--2007, this article explores the interrelationship among foreign
presence, domestic sales and export intensity of local firms. We find that
the domestic sales and exports are complementary for local firms in
China’s pharmaceutical industry, whereas in the case of the
textile, transportation equipment, beverage, communication equipment and
general equipment manufacturing industries, domestic sales and exports are
substitutes. An increase in the average domestic sales increases foreign
presence in all industries. The same applies to an increase in the average
export intensity. An increase in the level of competition in
China’s textile industry increases the export intensity as well as
domestic sales of local textile firms. However, an increase in the level
of competition in the pharmaceutical industry leads to a very large
decrease in export intensity of local pharmaceutical firms. In the case of
China’s transportation equipment manufacturing industry, an
increase in the level of competition decreases domestic sales of local
firms. Furthermore, an increase in the firm size increases domestic sales
of Chinese firms in all six manufacturing industries.
Journal: Applied Economics
Pages: 2443-2453
Issue: 26
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1122733
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122733
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Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2443-2453
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald A. Babula
Author-X-Name-First: Ronald A.
Author-X-Name-Last: Babula
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Title: Assessing the role of futures position substitutability in a monthly slaughtered pork factor demand by US processors: a cointegrated VAR model approach
Abstract:
This article combines cointegrated VAR modelling with basic neoclassical
production microeconomics in a new way that tests for, and illuminates the
empirical nature of, the monthly US pork processing sector’s factor
demand for slaughtered pork. Statistical evidence strongly suggests that
the US pork processing sector has a Hicksian Cobb--Douglas slaughtered
pork demand that arises from applying Shephard’s lemma to the
sector’s cost function and that US pork processors treat
slaughtered pork and related futures positions as close factor
substitutes. In the wake of major and ongoing futures market events and
trends, this study establishes and statistically tests a theoretical link
between futures price movements and impacts on the underlying slaughtered
pork market through monthly formation of US pork processors’ factor
demand for slaughtered pork. Evidence suggests that demand agents shift
between demands for the two substitutes based on movements in the
slaughter/futures price ratio that results in a market-stabilizing cushion
against sharp pork price movements such as those observed in the
late-1990s. Statistical and diagnostic evidence suggests that our modelled
non-experimental data and estimated Hicksian demand that arose from the
cointegrated VAR model’s cointegration space met Haavelmo’s
setting of passive variables and associated ceteris
paribus conditions.
Journal: Applied Economics
Pages: 2454-2468
Issue: 26
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1122734
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122734
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Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2454-2468
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Jareño
Author-X-Name-First: Francisco
Author-X-Name-Last: Jareño
Author-Name: Román Ferrer
Author-X-Name-First: Román
Author-X-Name-Last: Ferrer
Author-Name: Stanislava Miroslavova
Author-X-Name-First: Stanislava
Author-X-Name-Last: Miroslavova
Title: US stock market sensitivity to interest and inflation rates: a quantile regression approach
Abstract:
This article studies the sensitivity of the US stock market to nominal and
real interest rates and inflation during the 2003--2013 period using
quantile regression (QR). The empirical results show that the stock market
has a significant sensitivity to changes in interest rates and inflation
and finds differences across sectors and over time. Moreover, the effect
of changes in both interest rates and inflation tends to be more
pronounced during extreme market conditions, thus distinguishing expansion
periods from recession periods.
Journal: Applied Economics
Pages: 2469-2481
Issue: 26
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1122735
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122735
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Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2469-2481
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Beaulier
Author-X-Name-First: Scott
Author-X-Name-Last: Beaulier
Author-Name: Robert Elder
Author-X-Name-First: Robert
Author-X-Name-Last: Elder
Author-Name: Cheryl Han
Author-X-Name-First: Cheryl
Author-X-Name-Last: Han
Author-Name: Joshua C. Hall
Author-X-Name-First: Joshua C.
Author-X-Name-Last: Hall
Title: An ordinal ranking of economic institutions
Abstract:
We provide the first ranking of countries’ economic institutions
using an ordinal methodology. Using the five areas of the Fraser
Institute’s Economic Freedom of the World (EFW)
index, we find that final rankings of a country’s institutions are
sensitive to the importance-ordering of Area 1 (Size of Government). When
Areas 2--5 are in the most important position, we find that there is no
significant difference between the EFW rankings and our rankings. When
Area 1 is placed in the most important position, however, a number of
European countries with large welfare states but good governance do
poorly.
Journal: Applied Economics
Pages: 2482-2490
Issue: 26
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1122736
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1122736
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:26:p:2482-2490
Template-Type: ReDIF-Article 1.0
Author-Name: P. M. Korale Gedara
Author-X-Name-First: P. M.
Author-X-Name-Last: Korale Gedara
Author-Name: S. Ratnasiri
Author-X-Name-First: S.
Author-X-Name-Last: Ratnasiri
Author-Name: J. S. Bandara
Author-X-Name-First: J. S.
Author-X-Name-Last: Bandara
Title: Does asymmetry in price transmission exist in the rice market in Sri Lanka?
Abstract:
This study analyses asymmetry in price transmission between wholesale and
retail rice markets in Sri Lanka, using the threshold autoregressive
model. We found that the wholesale and the retail rice markets in Sri
Lanka are integrated, with price changes moving from the wholesale to the
retail market. However, the price transmission process is asymmetric. In
particular, price increases at the wholesale market transmit immediately
to the retail market while price decreases transmit more slowly. Parameter
stability test and follow-up analysis indicated that the price
transmission process is asymmetric only during periods of price surges,
suggesting that the rice market is not efficient during these periods.
Journal: Applied Economics
Pages: 2491-2505
Issue: 27
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125427
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125427
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2491-2505
Template-Type: ReDIF-Article 1.0
Author-Name: Tomomi Miyazaki
Author-X-Name-First: Tomomi
Author-X-Name-Last: Miyazaki
Title: Fiscal stimulus effectiveness in Japan: evidence from recent policies
Abstract:
This article examines the effects of Japanese fiscal policy after the 2008
global financial crisis using a mixed vector autoregression/event study
approach. We focus on the effects of stimulus packages with environmental
benefits. The empirical results show that a tax break and subsidy
programme designed to promote the adoption of eco-friendly cars helped
stimulate automobile production, while a similar programme intended to
promote the purchase of energy-efficient appliances had no effect on
appliance production.
Journal: Applied Economics
Pages: 2506-2515
Issue: 27
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125428
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125428
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2506-2515
Template-Type: ReDIF-Article 1.0
Author-Name: José F. Baños
Author-X-Name-First: José F.
Author-X-Name-Last: Baños
Author-Name: Ana Rodríguez-Álvarez
Author-X-Name-First: Ana
Author-X-Name-Last: Rodríguez-Álvarez
Title: Estimating technology in the postal sector: a Bayesian approach
Abstract:
The aim of this article is to study the technology of the sector
represented by the Spanish national post-office and telegraph service,
Sociedad Estatal Correos y Telégrafos, S.A. trading as
Correos, and denominated as such hereafter. Concretely,
we analyse economic efficiency (technical and allocative) and scale
economies of the production units (cost centres) of
Correos. To do this, we employ a methodology based on an
input distance function which is the dual of the cost function. Moreover,
and applying duality theory, we develop an economic model to assess the
effect of postal infrastructures on the operators’ costs. In order
to carry out the empirical model, Bayesian econometrics is applied to
estimate the parameters in the input distance function and the technical
and allocative efficiency terms.
Journal: Applied Economics
Pages: 2516-2529
Issue: 27
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125429
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125429
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2516-2529
Template-Type: ReDIF-Article 1.0
Author-Name: Liang Guo
Author-X-Name-First: Liang
Author-X-Name-Last: Guo
Author-Name: Ya Dai
Author-X-Name-First: Ya
Author-X-Name-Last: Dai
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Title: The effects of China’s split-share reform on firms’ capital structure choice
Abstract:
China’s split-share structure reform in 2005--2006 mitigates agency
conflicts between controlling shareholders and minority shareholders and
thus may bring substantial changes to corporate financing behaviour. This
article examines the impact of that reform on the capital structure
decisions of firms by applying a variety of trade-off and pecking-order
models. Using data from 1176 non-financial Chinese listed firms during the
period 2000--2012, we present empirical evidence indicating that equity
tracks the financing deficit better than debt in Chinese firms, a finding
which is not consistent with pecking-order theory. This phenomenon is more
prominent after 2006 as share reform increases trading activity in the
secondary stock market and improves the transparency of financial markets.
In addition, Chinese firms have an optimal leverage ratio and they adjust
below-target leverage ratios faster than above-target leverage ratios
after the implementation of share structure reform, although they make
symmetric adjustments towards the target leverage ratio before 2007.
Finally, recent share reform has prompted Chinese firms to more quickly
address the divergence of actual leverage ratios from long-term target
levels, but has slowed their response to short-term target leverage
divergence.
Journal: Applied Economics
Pages: 2530-2549
Issue: 27
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125430
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125430
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Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2530-2549
Template-Type: ReDIF-Article 1.0
Author-Name: Dong Hee Suh
Author-X-Name-First: Dong Hee
Author-X-Name-Last: Suh
Author-Name: Hayk Khachatryan
Author-X-Name-First: Hayk
Author-X-Name-Last: Khachatryan
Author-Name: Zhengfei Guan
Author-X-Name-First: Zhengfei
Author-X-Name-Last: Guan
Title: Why do we adopt environmentally friendly lawn care? Evidence from do-it-yourself consumers
Abstract:
This study identifies the factors determining the purchase frequencies of
organic/natural fertilizers (ONFs) with a focus on do-it-yourself (DIY)
consumers’ perceptions and motives. The estimation results of the
generalized ordered logit model provide statistical evidence that
environmental perceptions are critical factors in directing DIY consumers
to purchase ONFs frequently. The results imply that educational
programmes, informational campaigns, or advertisements to improve their
perceptions on the potential negative impacts of fertilization on the
environment may increase the purchase frequencies of ONFs. In addition,
the results show that DIY consumers perceive that it is worth using ONFs
despite their higher prices than chemical fertilizers. Their purchase
frequencies will increase if they positively perceive the values of ONFs
and are willing to pay a premium for ONFs. Moreover, the purchasing
behaviour of DIY consumers is associated with their perceptions of
neighbourhood landscaping. If neighbours or homeowner associations
encourage landscaping improvements in their community, DIY consumers may
increase their purchase frequencies of ONFs accordingly.
Journal: Applied Economics
Pages: 2550-2561
Issue: 27
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125431
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125431
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Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2550-2561
Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova
Author-X-Name-First: Petra
Author-X-Name-Last: Maresova
Author-Name: Blanka Klimova
Author-X-Name-First: Blanka
Author-X-Name-Last: Klimova
Author-Name: Kamil Kuca
Author-X-Name-First: Kamil
Author-X-Name-Last: Kuca
Title: Financial and legislative aspects of drug development of orphan diseases on the European market -- a systematic review
Abstract:
According to the European Commission, medical products for orphan diseases
are those which affect fewer than five persons out of every 10 000.
Producers are reluctant to develop these drugs under the common market
conditions because the demand for these drugs does not guarantee return on
investments into research and development of such products. Patients with
orphan diseases, however, have the same rights for treatment as any other
patient. To stimulate the research and development of drugs for orphan
diseases, the governmental offices introduce various incentives for health
and biotechnological industry. This started in the USA already in 1983 by
passing a special law. Japan introduced this law in 1993 and Australia in
1997. Europe followed in 1999 by introducing common policy for all member
states.The aim of this article is to specify current economic and
legislative conditions in European countries and compare them with the
legislation and approaches of the countries which started this initiative,
i.e. USA, Japan, Australia or Singapore. In addition, the treatment costs
of orphan diseases are specified and prospects of this field are
evaluated.
Journal: Applied Economics
Pages: 2562-2570
Issue: 27
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125433
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125433
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Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2562-2570
Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Chatziantoniou
Author-X-Name-First: Ioannis
Author-X-Name-Last: Chatziantoniou
Author-Name: Stavros Degiannakis
Author-X-Name-First: Stavros
Author-X-Name-Last: Degiannakis
Author-Name: Bruno Eeckels
Author-X-Name-First: Bruno
Author-X-Name-Last: Eeckels
Author-Name: George Filis
Author-X-Name-First: George
Author-X-Name-Last: Filis
Title: Forecasting tourist arrivals using origin country macroeconomics
Abstract:
This study utilizes both disaggregated data and macroeconomic indicators
in order to examine the importance of the macroeconomic environment of
origin countries for analysing destinations’ tourist arrivals. In
particular, it is the first study to present strong empirical evidence
that both of these features in tandem provide statistically significant
information of tourist arrivals in Greece. The forecasting exercises
presented in our analysis show that macroeconomic indicators conducive to
better forecasts are mainly origin country-specific, thus highlighting the
importance of considering the apparent sharp national contrasts among
origin countries when investigating domestic tourist arrivals. Given the
extent of the dependency of the Greek economy on tourism income and also
the perishable nature of the tourist product itself, results have
important implications for policymakers in Greece.
Journal: Applied Economics
Pages: 2571-2585
Issue: 27
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125434
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125434
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Handle: RePEc:taf:applec:v:48:y:2016:i:27:p:2571-2585
Template-Type: ReDIF-Article 1.0
Author-Name: Haitao Yin
Author-X-Name-First: Haitao
Author-X-Name-Last: Yin
Author-Name: Hui Zhou
Author-X-Name-First: Hui
Author-X-Name-Last: Zhou
Author-Name: Kai Zhu
Author-X-Name-First: Kai
Author-X-Name-Last: Zhu
Title: Long- and short-run elasticities of residential electricity consumption in China: a partial adjustment model with panel data
Abstract:
While it has stabilized in developed world, the per capita residential
electricity consumption (REC) in developing countries such as China is
growing very rapidly and this trend is very likely to continue. Built upon
a provincial level panel data, we employ a partial adjustment model to
investigate the future trend of REC in China and factors that affect it.
We estimate the income and price short-term and long-term elasticities for
urban and rural China, respectively and compare the results with REC
studies in other countries or regions. The findings provide useful
information to understand how the REC would grow in China as household
income increases and how effective that price could be as an intervention
tool.
Journal: Applied Economics
Pages: 2587-2599
Issue: 28
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125436
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125436
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Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2587-2599
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Sensoy
Author-X-Name-First: Ahmet
Author-X-Name-Last: Sensoy
Title: Impact of sovereign rating changes on stock market co-movements: the case of Latin America
Abstract:
We aim to determine if long-term foreign currency sovereign rating
assessments (from S&P, Moody’s and Fitch) for the advanced emerging
Latin American countries (Brazil, Mexico and Chile) have any significant
effect on the correlation between their stock market returns in the last
decade. With that purpose in mind, we obtain the time-varying correlation
by cDCC modeling using ARX-APARCH filtered returns. The analysis shows
that the rating changes do not have a significant effect on the
correlations in general. After testing for robustness, we reveal that an
upgrade to an investment grade level for a country is more likely to
positively diversify it from others in the region instead of creating a
common positive regional investment environment. Results have important
implications for investors and policymakers.
Journal: Applied Economics
Pages: 2600-2610
Issue: 28
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125437
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125437
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Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2600-2610
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Jacob
Author-X-Name-First: Martin
Author-X-Name-Last: Jacob
Title: Cross-base tax elasticity of capital gains
Abstract:
This paper studies the cross-base tax elasticity of capital gains
realizations to labour income taxes when capital gains are taxed at a
separate proportional tax rate. Using a longitudinal panel of over 265 000
individuals in Sweden, this paper shows in a regression kink design that
labour income taxes affect capital gains realizations in two ways. An
increase in the marginal labour income tax rate increases the likelihood
of realizing capital gains and the amount of realized capital gains. One
implication of this result is that labour income taxes have a lock-out
effect but that the magnitude of this effect is smaller than the lock-in
effect of the actual capital gains tax.
Journal: Applied Economics
Pages: 2611-2624
Issue: 28
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125438
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125438
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Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2611-2624
Template-Type: ReDIF-Article 1.0
Author-Name: Tarron Khemraj
Author-X-Name-First: Tarron
Author-X-Name-Last: Khemraj
Author-Name: Sherry Yu
Author-X-Name-First: Sherry
Author-X-Name-Last: Yu
Title: The effectiveness of quantitative easing: new evidence on private investment
Abstract:
This paper examines the effect of Federal Reserve’s large-scale
purchases of securities on private investment. We find tentative evidence
that quantitative easing (QE) stimulated the level of aggregate investment
through the interest rate channel by narrowing corporate bond spread. In
particular, the Fed’s purchases of mortgage-backed securities were
found to have a statistically significant effect on aggregate private
investment. Moreover, using a GARCH model, we find that QE has led to a
reduction in the volatility of private investment. This finding remains
robust with a QE dummy variable as an alternative measure of the
unconventional monetary policy. The study also indicates how different
aspects of QE influence private investment and its volatility.
Journal: Applied Economics
Pages: 2625-2635
Issue: 28
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1125439
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1125439
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Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2625-2635
Template-Type: ReDIF-Article 1.0
Author-Name: Nadeem A. Burney
Author-X-Name-First: Nadeem A.
Author-X-Name-Last: Burney
Author-Name: Mohammad Alenezi
Author-X-Name-First: Mohammad
Author-X-Name-Last: Alenezi
Author-Name: Nadia Al-Musallam
Author-X-Name-First: Nadia
Author-X-Name-Last: Al-Musallam
Author-Name: Ahmed Al-Khayat
Author-X-Name-First: Ahmed
Author-X-Name-Last: Al-Khayat
Title: The demand for medical care services: evidence from Kuwait based on households’ out-of-pocket expenses
Abstract:
This article used a data set containing information on 1267 households
from Kuwait to investigate the determinants of demand for medical care
services by examining households’ out-of-pocket expenses. To deal
with the problems associated with households’ health expenditure
data, a two-part model (TPM) was estimated. Given Kuwait’s
demographic composition, the model was estimated for full sample,
nationals only and expatriates only. Prior to estimating the model, tests
were conducted to select a transformation that reduces problems associated
with heteroscedasticity and non-normality of the errors. In addition,
tests were performed to determine if differences in the estimated
coefficients across population groups were statistically significant.
Journal: Applied Economics
Pages: 2636-2650
Issue: 28
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128073
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128073
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Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2636-2650
Template-Type: ReDIF-Article 1.0
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: João Tovar Jalles
Author-X-Name-First: João Tovar
Author-X-Name-Last: Jalles
Title: The elusive character of fiscal sustainability
Abstract:
We assess the sustainability of public finances in OECD countries using
unit root and cointegration analysis, controlling for endogenous breaks.
Results deem fiscal sustainability as rather elusive since we find lack of
cointegration -- absence of sustainability -- between government revenues
and expenditures (except for Austria, Canada, France, Germany, Japan,
Netherlands, Sweden and UK); improvements of the primary balance after
worsening debt ratios only for Australia, Belgium, Germany, Ireland,
Netherlands and the UK; and Granger causality from government debt to
primary balances for 12 countries (suggesting Ricardian regimes).
Journal: Applied Economics
Pages: 2651-2664
Issue: 28
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128074
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128074
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Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2651-2664
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Stefano Di Colli
Author-X-Name-First: Stefano
Author-X-Name-Last: Di Colli
Author-Name: Roberto Di Salvo
Author-X-Name-First: Roberto
Author-X-Name-Last: Di Salvo
Author-Name: Juan Sergio Lopez
Author-X-Name-First: Juan Sergio
Author-X-Name-Last: Lopez
Title: Local banking and local economic growth in Italy: some panel evidence
Abstract:
This article provides new evidence on the contribution of local banking to
local economic growth (i.e. at county level -- the Italian
‘province’) in Italy. A comprehensive data set is used,
which includes control variables for social capital and human capital as
well as indicators of the quality of local infrastructures and the
production structure of the local economy. A linear within-estimator
technique with fixed effects is applied to a modified version of the
so-called Barro regression in order to address the well-known econometric
issues of reverse causality and estimation bias resulting from unobserved
district-specific influences.
Journal: Applied Economics
Pages: 2665-2674
Issue: 28
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128075
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128075
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Handle: RePEc:taf:applec:v:48:y:2016:i:28:p:2665-2674
Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Ayala
Author-X-Name-First: Astrid
Author-X-Name-Last: Ayala
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Juncal Cuñado
Author-X-Name-First: Juncal
Author-X-Name-Last: Cuñado
Author-Name: Luis Albériko Gil-Alana
Author-X-Name-First: Luis Albériko
Author-X-Name-Last: Gil-Alana
Title: Regime-switching purchasing power parity in Latin America: Monte Carlo unit root tests with dynamic conditional score
Abstract:
We suggest a Monte Carlo simulation-based unit root test of the purchasing
power parity theory for Latin American countries. Under the null
hypothesis, we use a Markov regime-switching (MS) model with unit root in
the conditional location and MS volatility dynamics. Under the alternative
hypothesis, the proposed test incorporates Markov regime-switching
autoregressive moving average (MS-ARMA) plus MS volatility dynamics. Under
both the null and alternative hypotheses, one of the volatility models
estimated is Beta-t-EGARCH, which is a recent dynamic
conditional score volatility model. We use data on real effective exchange
rate time series for 14 Latin American countries. For each country, we
estimate by Monte Carlo simulation the critical values of the unit root
test. We provide an economic discussion of the unit root test results and
also study the robustness of MS-ARMA plus MS volatility with respect to
smooth transition autoregressive models with Fourier function.
Journal: Applied Economics
Pages: 2675-2696
Issue: 29
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128076
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128076
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Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2675-2696
Template-Type: ReDIF-Article 1.0
Author-Name: Lili Li
Author-X-Name-First: Lili
Author-X-Name-Last: Li
Author-Name: Jun Yang
Author-X-Name-First: Jun
Author-X-Name-Last: Yang
Author-Name: Xin Zou
Author-X-Name-First: Xin
Author-X-Name-Last: Zou
Title: A study of credit risk of Chinese listed companies: ZPP versus KMV
Abstract:
The Zero-Price Probability (ZPP) model is applied to evaluate the credit
risk of listed companies in China and its performance is compared to that
of the Kealhofer-McQuown-Vasicek (KMV) model. The sample includes 34
financially distressed companies and a comparison group of 34 financially
healthy companies. The performances of ZPP and KMV models are compared
using various descriptive statistics and statistical tests. The empirical
analyses show that the ZPP model is superior to the KMV model in terms of
discriminatory power. Compared to the KMV model, the ZPP model performs
much better in distinguishing between financially challenged and healthy
firms. Among different specifications of the ZPP model, the naïve
constant variance zero-price probability model outperforms those with
generalized autoregressive conditional heteroskedasticity specifications.
This article is among the very first studies that provide evidence on the
performance of the ZPP model.
Journal: Applied Economics
Pages: 2697-2710
Issue: 29
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128077
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128077
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Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2697-2710
Template-Type: ReDIF-Article 1.0
Author-Name: C. P. Barros
Author-X-Name-First: C. P.
Author-X-Name-Last: Barros
Author-Name: O. H. dos S. Figueiredo
Author-X-Name-First: O. H. dos S.
Author-X-Name-Last: Figueiredo
Author-Name: Silvestre Dumbo
Author-X-Name-First: Silvestre
Author-X-Name-Last: Dumbo
Title: A performance assessment of the Angolan soccer league
Abstract:
This article analyses the technical efficiency of the Angolan soccer
league from 2008 to 2014, using a translog distance stochastic frontier
model. The Greene stochastic frontier model, presented in 2005, and
Kumbhakar stochastic frontier model, presented in 1990, are adopted, and
the covariates used include Luanda location, funding by the oil company
Sonangol, club supported by rich fans and club relegated during the
period. Policy implications are then derived.
Journal: Applied Economics
Pages: 2711-2720
Issue: 29
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128078
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128078
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Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2711-2720
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Ceballos
Author-X-Name-First: Luis
Author-X-Name-Last: Ceballos
Author-Name: Alberto Naudon
Author-X-Name-First: Alberto
Author-X-Name-Last: Naudon
Author-Name: Damián Romero
Author-X-Name-First: Damián
Author-X-Name-Last: Romero
Title: Nominal term structure and term premia: evidence from Chile
Abstract:
The downwards trend exhibited in Chile’s nominal term structure
since 2003 has been a common pattern shared by other developed and
developing economies. To understand the behaviour of the nominal yield
curve in Chile, we rely on an affine dynamic term structure model which
allows the term structure to decompose into the expected short-term
interest rate (related to the monetary policy expectation) and the term
premium. We show that most of the fall of long-term interest rates as well
as its dynamics are related to the term premium rather than the expected
short-term interest rate. Moreover, we find evidence that term premium is
driven primarily by the US term premium and domestic nominal uncertainty
derived from expected inflation.
Journal: Applied Economics
Pages: 2721-2735
Issue: 29
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128079
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128079
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Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2721-2735
Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Bachmann
Author-X-Name-First: Carmen
Author-X-Name-Last: Bachmann
Author-Name: Martin Baumann
Author-X-Name-First: Martin
Author-X-Name-Last: Baumann
Title: The repatriation incentive of the foreign dividend exemption system
Abstract:
Due to the high taxation of domestic corporate income, Japanese
multinational enterprises have avoided to repatriate foreign profits to
Japan for quite some time. As a consequence, the Japanese government
introduced a new taxation system in 2009 -- the so called dividend
exemption system -- which was aimed at reducing the effective tax burden
of foreign dividends of Japanese multinational companies in order to
increase tax revenue and stimulate economic growth. Applying a theoretical
framework which allows comparing the repatriation incentive of the old and
new Japanese tax systems, we find that in the long-run the tax regime
change fails to incentivize foreign subsidiaries to repatriate foreign
profits. Especially subsidiaries with high leverage located in countries
with low corporate taxes and low dividend taxes might reinvest rather than
distribute their earnings in the dividend exemption method.
Journal: Applied Economics
Pages: 2736-2755
Issue: 29
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128080
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128080
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2736-2755
Template-Type: ReDIF-Article 1.0
Author-Name: Nirosha Hewa Wellalage
Author-X-Name-First: Nirosha Hewa
Author-X-Name-Last: Wellalage
Author-Name: Stuart Locke
Author-X-Name-First: Stuart
Author-X-Name-Last: Locke
Title: Informality and credit constraints: evidence from Sub-Saharan African MSEs
Abstract:
The attributes of micro and small enterprises (MSEs) influencing access to
credit, in particular the level and role of firm informality, are analysed
in the article. The puzzle is the push for MSEs to join the formal sector
and the tug to avoid the extra burden it places on the firm. It is
important to know more clearly what forces are at work and the sources of
the causal effects. This study uses data from the World Bank Enterprise
Surveys for five low-income countries (LICs) in Sub-Saharan Africa. The
method is empirical and as we find informality to be endogenous to credit
constraints, an instrumental variable approach is estimated. Further, to
address the possibility of reverse causality, an instrument for the
informality variable is required; not registered with Inland Revenue (tax
office) is the chosen instrument variable. The findings reveal that as the
probability of a firm operating in the formal sector increases, there is
greater access to external credit. The causality relationships are tested
providing a strong platform for the formalization of polices to reduce the
informality of the MSE sector. These are discussed in the context of the
research findings.
Journal: Applied Economics
Pages: 2756-2770
Issue: 29
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128081
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128081
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Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2756-2770
Template-Type: ReDIF-Article 1.0
Author-Name: Mevlude Akbulut-Yuksel
Author-X-Name-First: Mevlude
Author-X-Name-Last: Akbulut-Yuksel
Author-Name: Melanie Khamis
Author-X-Name-First: Melanie
Author-X-Name-Last: Khamis
Author-Name: Mutlu Yuksel
Author-X-Name-First: Mutlu
Author-X-Name-Last: Yuksel
Title: For better or for worse: the long-term effects of postwar mobilization on family formation
Abstract:
This article estimates the long-term legacies of female labour force
mobilization on women’s family formation outcomes such as marriage,
age at first marriage and divorce. We identify the long-term marriage
effects of female labour force mobilization by exploring postwar mandatory
employment in Germany. Using difference-in-differences analysis, we find
that participation in postwar reconstruction efforts increased
women’s probability of being currently married, ever married and
marrying at younger ages. We also find that postwar employment had no
differential effect on divorce rates of the affected cohorts of women.
These results persist after accounting for the potential changes in the
composition of the population, demand for female labour, war relief
payments and postwar state-specific policies.
Journal: Applied Economics
Pages: 2771-2784
Issue: 29
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128082
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128082
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Handle: RePEc:taf:applec:v:48:y:2016:i:29:p:2771-2784
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Zorro Mendes
Author-X-Name-First: Zorro
Author-X-Name-Last: Mendes
Title: Assessing the competition in Angola’s banking industry
Abstract:
This article analyses the level of competition in Angola’s banking
industry using the Panzar--Rosse model with data from 2005 to 2014.
Competition is a vital aspect of the banking market and therefore it is
central to policy-making. The results reveal that Angola banking
competition is monopolist and therefore lower competition is found in
Angola banks. Policy implication is derived.
Journal: Applied Economics
Pages: 2785-2791
Issue: 30
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1128083
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1128083
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Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2785-2791
Template-Type: ReDIF-Article 1.0
Author-Name: Akhand Akhtar Hossain
Author-X-Name-First: Akhand Akhtar
Author-X-Name-Last: Hossain
Author-Name: Popkarn Arwatchanakarn
Author-X-Name-First: Popkarn
Author-X-Name-Last: Arwatchanakarn
Title: Inflation and inflation volatility in Thailand
Abstract:
Quarterly data for Thailand are used in this article for the period
1965q3--2013q4 to investigate both the relationship between inflation and
inflation volatility, and the impact of inflation volatility on economic
growth. Inflation volatility is estimated by deploying the generalized
autoregressive conditional heteroscedastic (GARCH) technique. A Granger
causality test is then conducted to examine the causality between
inflation and inflation volatility. The empirical results obtained are
consistent with a number of theoretical propositions. First, the results
are consistent with the Friedman--Ball proposition, which states that a
rise in inflation raises inflation volatility. Second, there is evidence
supporting the Holland proposition that inflation volatility lowers the
rate of inflation. This is consistent with the view that central banks
attempt to stabilize inflation with the rise in inflation volatility.
Third, empirical results obtained by asymmetric GARCH models suggest that
inflation shocks have an asymmetric impact on inflation volatility (i.e. a
positive inflation shock has a larger impact on inflation volatility -- as
measured by the logarithm of the conditional variance of inflation -- than
a negative inflation shock). Fourth, inflation volatility has an adverse
impact on economic growth. Finally, given the fixed/pegged or managed
float exchange rate system, US inflation has been found to have a positive
impact on inflation and its volatility in Thailand. This article discusses
the implications of empirical findings on the design and enactment of
monetary policy for price stability in Thailand.
Journal: Applied Economics
Pages: 2792-2806
Issue: 30
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1130215
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130215
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Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2792-2806
Template-Type: ReDIF-Article 1.0
Author-Name: R. Collet
Author-X-Name-First: R.
Author-X-Name-Last: Collet
Author-Name: D. Legros
Author-X-Name-First: D.
Author-X-Name-Last: Legros
Title: Dynamics of female labour force participation in France
Abstract:
This article formulates and estimates a structural intertemporal model of
labour force participation. Relying on theoretical characterizations
derived from an economic model of lifetime behaviour, we estimate a
dynamic probit model with correlated random effects using longitudinal
data to allow for a dynamic structure. The model is applied to a panel of
married women drawn from the 1997--2002 French Labour Force surveys in
order to represent their participation behaviour. It is estimated by
maximum simulated likelihood. Our results show that women’s
decisions to go out to work are characterized by significant state
dependence, unobserved heterogeneity and negative serial correlation in
the transitory error component. In addition, we find that the presence of
young children in a woman’s household reduces her labour
participation, but unequally according to their age and number. As
expected, educational level has a positive impact on women’s
participation. Last, a rise in the husband’s wage is found to raise
female participation initially and to lower it subsequently. This
empirical finding suggests that leisure may not systematically be a normal
good, contrary to what is frequently assumed in the literature.
Journal: Applied Economics
Pages: 2807-2821
Issue: 30
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1130787
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130787
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Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2807-2821
Template-Type: ReDIF-Article 1.0
Author-Name: Thanh Pham Thien Nguyen
Author-X-Name-First: Thanh Pham Thien
Author-X-Name-Last: Nguyen
Author-Name: Son Hong Nghiem
Author-X-Name-First: Son Hong
Author-X-Name-Last: Nghiem
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Parmendra Sharma
Author-X-Name-First: Parmendra
Author-X-Name-Last: Sharma
Title: Bank reforms and efficiency in Vietnamese banks: evidence based on SFA and DEA
Abstract:
This study examines the cost efficiency of Vietnamese banks from 2000 to
2014 in the first stage, and the selection and dynamic effects of two
governance reforms, foreign partial acquisition and listing on the stock
exchange, on the efficiency in the second stage. Empirical results from
the two-stage Stochastic Frontier Analysis (SFA) are highly consistent
with those from the two-stage Data Envelopment Analysis (DEA) .
Specifically, the first-stage efficiency estimation indicates that the
cost efficiency shows a slightly upward trend over the period 2000--2014,
with the cost efficiency score being 0.93 and state-owned banks
outperforming joint-stock banks (JSBs). The mixed process seemingly
unrelated regression estimator which controls the potential endogeneity of
public listing and foreign acquisition in the second stage shows that
selection effects occur in the Vietnamese banking system: banks selected
by the strategic foreign investors for partial acquisition and banks
selected for public listing are more cost-efficient than those not
selected. The short-term and long-term dynamic effects of foreign partial
acquisition are documented: the cost efficiency of the Vietnamese banks
post-partial acquisition is lower than prior-partial acquisition, and it
experiences a decreasing trend since partial acquisition. However, the
short-term and long-term dynamic effects of public listing are not
evidenced: the cost efficiency of the banks after public listing is not
statistically different from that before public listing, and it also
reveals an unclear trend since public listing.
Journal: Applied Economics
Pages: 2822-2835
Issue: 30
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1130788
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130788
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Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2822-2835
Template-Type: ReDIF-Article 1.0
Author-Name: R. A. Korthals
Author-X-Name-First: R. A.
Author-X-Name-Last: Korthals
Author-Name: J. Dronkers
Author-X-Name-First: J.
Author-X-Name-Last: Dronkers
Title: Selection on performance and tracking
Abstract:
Tracking is widely used in secondary schools around the world. Some
countries put more emphasis on the use of performance to place students
into tracks (e.g. the Netherlands), while in other countries parents have
more influence on the track their child will go to (e.g. Germany). This
article examines whether selection into tracks based on performance has an
effect on the relation between tracking and student performance and
educational opportunities. Using data from the Programme for International
Student Assessment for around 185 000 students in 31 countries,
different estimation models are compared. The results indicate that a
highly differentiated system is best for performance when schools always
consider prior performance when deciding on student acceptance. In systems
with a few tracks, there is no such impact. Equality of opportunity is
best provided for in a system with many tracks when schools always
consider prior performance.
Journal: Applied Economics
Pages: 2836-2851
Issue: 30
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1130789
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130789
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Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2836-2851
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos E. da Costa
Author-X-Name-First: Carlos E.
Author-X-Name-Last: da Costa
Author-Name: Jaime de Jesus Filho
Author-X-Name-First: Jaime de
Author-X-Name-Last: Jesus Filho
Author-Name: Paulo Matos
Author-X-Name-First: Paulo
Author-X-Name-Last: Matos
Title: Forward-premium puzzle: is it time to abandon the usual regression?
Abstract:
The forward premium puzzle is usually evidenced by the rejection of the
null hypothesis in the uncovered interest parity (UIP) regression. Because
this parity need only hold in a risk-neutral world, a risk adjustment term
is missing from the equation if speculation in foreign exchange markets is
risky. We deal with this issue following the literature which assumes that
discounted returns on foreign government bonds are log-normal, so we can
linearize the Euler pricing equations (in level) and obtain a modified UIP
system for which the risk adjustment term is obtained by applying to the
pricing kernel-based relations a generalized autoregressive conditional
heteroscedasticity-in-mean model. However, here we innovate by adopting a
methodology which differs from all these related works. We construct and
use a stochastic discount factor that does not depend on a specific model,
by residing in the space of returns which we extract from the data by
simply imposing the orthogonality restrictions represented by the Euler
equations. So, we devise a purely statistical pricing kernel that performs
well in in-sample level equations. Somewhat disappointingly, the risk
premium inclusion in the conventional regression changes neither the
significance nor the magnitude of the forecasting power of the forward
premium for most currencies we study. The contrasting performance of the
tests in level and in logs suggests that linearization may be to blame.
Journal: Applied Economics
Pages: 2852-2867
Issue: 30
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1130790
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130790
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Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2852-2867
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Araujo
Author-X-Name-First: Luis
Author-X-Name-Last: Araujo
Author-Name: Vladimir Ponczek
Author-X-Name-First: Vladimir
Author-X-Name-Last: Ponczek
Author-Name: André Portela Souza
Author-X-Name-First: André Portela
Author-X-Name-Last: Souza
Title: Informality in an economy with active labour courts
Abstract:
Job regulations and the justice branch interfere on several aspects of
labour contracts. We build a model which explores the role of labour
courts on the wage distribution in both formal and informal sectors. We
obtain that the presence of active labour courts produces a negative
relation between the wage gap and the productivity of the worker, a
regularity documented in the empirical literature. Active labour courts
also reduce informality of unskilled workers but do not have an impact on
informality of skilled workers. Some elements and implications of our
model are tested using Brazilian data.
Journal: Applied Economics
Pages: 2868-2882
Issue: 30
Volume: 48
Year: 2016
Month: 6
X-DOI: 10.1080/00036846.2015.1130791
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130791
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Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2868-2882
Template-Type: ReDIF-Article 1.0
Author-Name: M. Kevin McGee
Author-X-Name-First: M. Kevin
Author-X-Name-Last: McGee
Title: Two universal, probabilistic measures of competitive imbalance
Abstract:
I propose two universal measures of competitive imbalance. The first is,
like those in the existing literature, based on team season win--loss
records. The second is based solely on the outcomes of the various series
of individual matchups during a season. Both measures will on average
equal (2p − 1)-super-2, where p
is the ‘typical’ probability that the stronger team will win
any particular game. Both measures will average zero when a league is
competitively balanced and will converge to 1 as the league approaches
perfect imbalance. In addition, both measures are universal, in that they
are on average independent of the number of teams in the league and the
number of games played during the season.
Journal: Applied Economics
Pages: 2883-2894
Issue: 31
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1130792
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130792
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Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2883-2894
Template-Type: ReDIF-Article 1.0
Author-Name: Stelios Bekiros
Author-X-Name-First: Stelios
Author-X-Name-Last: Bekiros
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Clement Kyei
Author-X-Name-First: Clement
Author-X-Name-Last: Kyei
Title: A non-linear approach for predicting stock returns and volatility with the use of investor sentiment indices
Abstract:
The popular sentiment-based investor index S-super-BW
introduced by Baker and Wurgler (2006, 2007) is shown to have no
predictive ability for stock returns. However, Huang et al. (2015)
developed a new investor sentiment index, S-super-PLS,
which can predict monthly stock returns based on a linear framework.
However, the linear model may lead to misspecification and lack of
robustness. We provide statistical evidence that the relationship between
stock returns, S-super-BW and
S-super-PLS is characterized by structural instability
and inherent nonlinearity. Given this, using a nonparametric causality
approach, we show that neither S-super-BW nor
S-super-PLS predicts stock market returns or even its
volatility, as opposed to previous empirical evidence.
Journal: Applied Economics
Pages: 2895-2898
Issue: 31
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1130793
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130793
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Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2895-2898
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Omid Ranjbar
Author-X-Name-First: Omid
Author-X-Name-Last: Ranjbar
Title: Quantile unit root test and PPP: evidence from 23 OECD countries
Abstract:
Application of six different univariate unit root tests to real effective
exchange rates of 23 OECD countries supports their stationarity or
Purchasing Power Parity theory (PPP) only in five countries, a result
consistent with previous research that is known as PPP puzzle. However,
descriptive statistics of each effective rate reveals a clear sign of
non-normal distribution. To account for this, we use quantile unit root
test which allows impact of different shocks to be realized at different
quantiles. When we applied this new test to the same rates, number of
countries in which PPP is supported increased to 16. Apparently,
incorporating effects of shocks improves testing efficiency and provides
more support for the PPP and reduces the severity of the puzzle.
Journal: Applied Economics
Pages: 2899-2911
Issue: 31
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1130794
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130794
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Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2899-2911
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Seyed Hesam Ghodsi
Author-X-Name-First: Seyed Hesam
Author-X-Name-Last: Ghodsi
Title: Do changes in the fundamentals have symmetric or asymmetric effects on house prices? Evidence from 52 states of the United States of America
Abstract:
Time-series studies that have tried to establish the long-run relationship
between house prices and economic fundamentals have been criticized due to
low power of their cointegration tests. On the other hand, those who have
used panel data and panel tests to increase the power have found mixed
results. Both groups have assumed that changes in the fundamentals have
symmetric effects on house prices. In this article, we use nonlinear ARDL
approach to cointegration and error-correction modelling and quarterly
data from each of the states in the US to show that changes in the
fundamentals have asymmetric effects on house prices, in the short run as
well as in the long run. Cointegration between house prices and
fundamentals is established in 30 states and in District of Columbia.
Journal: Applied Economics
Pages: 2912-2936
Issue: 31
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1130795
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1130795
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2912-2936
Template-Type: ReDIF-Article 1.0
Author-Name: Sekou Keita
Author-X-Name-First: Sekou
Author-X-Name-Last: Keita
Title: Bilateral real exchange rates and migration
Abstract:
Migrants who move across borders are, to a large extent, motivated by the
prospect of earning higher incomes at destination, which can be partly
transferred back to their countries of origin via remittances. This
suggests that the real exchange rate can influence the incentives to
migrate, as it determines the purchasing power of expected income in terms
of the currency of the origin country. This article investigates
empirically how bilateral real exchange rate fluctuations influence
international migration flows. To do so, we build a dataset of 30 OECD
destination countries and 165 origin countries over the period 1980--2011
and estimate an equation derived from a micro-founded random utility
maximization model that allows for unobserved heterogeneity between
migrants and non-migrants. Our results show that migration flows are
highly responsive to bilateral real exchange rates: A 10% real
appreciation of the currency of the destination country is associated with
an 18.2--19.4% increase in migration flows.
Journal: Applied Economics
Pages: 2937-2951
Issue: 31
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133893
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133893
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Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2937-2951
Template-Type: ReDIF-Article 1.0
Author-Name: Yankun Chen
Author-X-Name-First: Yankun
Author-X-Name-Last: Chen
Author-Name: Jinghong Shu
Author-X-Name-First: Jinghong
Author-X-Name-Last: Shu
Author-Name: Jin E. Zhang
Author-X-Name-First: Jin E.
Author-X-Name-Last: Zhang
Title: Investor sentiment, variance risk premium and delta-hedged gains
Abstract:
Delta-hedged gains are supposed to be negative and represent a volatility
risk premium. Using a sample of Standard & Poor 500 index options from
2006 to 2009, this study documents two anomalies that cannot be explained
by the volatility risk premium. First, delta-hedged gains are more
negative for out-of-money options than for at-the-money options. Second,
delta-hedged gains are significantly positive during financial crisis
period. We propose a behavioural explanation in which both option prices
and stock prices are affected by investor’s sentiment, but
pessimistic sentiment has a greater impact on stock market than option
market. This asymmetric response to pessimistic mood in turn affects the
relative expensiveness of option prices.
Journal: Applied Economics
Pages: 2952-2964
Issue: 31
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133894
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133894
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Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2952-2964
Template-Type: ReDIF-Article 1.0
Author-Name: C. P. Barros
Author-X-Name-First: C. P.
Author-X-Name-Last: Barros
Author-Name: Dércio Mandlaze
Author-X-Name-First: Dércio
Author-X-Name-Last: Mandlaze
Author-Name: Scott Tainsky
Author-X-Name-First: Scott
Author-X-Name-Last: Tainsky
Title: The efficiency of Mozambique soccer league: the Moçambola
Abstract:
This paper analyses the technical efficiency of the Mozambique football
league from 2008 to 2014 using a Bayesian stochastic frontier model with
exponential specification. Covariates include contextual characteristics
such as location, identification as a Muslim club, and sporting
performance. The results uncover that Mozambique sports clubs display
varying efficiency, revealing distinct managerial incentives in the
Mozambique football league. Policy implications are derived, including
efficiency scores deemed to be acceptable to the league and
reconsideration of the rationale for national investment in all
league’s clubs.
Journal: Applied Economics
Pages: 2965-2971
Issue: 31
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133895
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133895
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Handle: RePEc:taf:applec:v:48:y:2016:i:31:p:2965-2971
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Title: R&D intensity, economic growth and firm-size growth: theory and practice
Abstract:
This article proposes a theoretical knowledge-driven horizontal research
and development (R&D) endogenous-growth model to explain, for 10
innovative countries, the co-movement of the respective R&D intensity,
economic growth and firm-size growth, by exploring short-medium-run and
long-run growth effects. Bearing in mind some recent literature, we
improve the R&D technology, by considering that R&D is more labour
intensive through time as complexity increases, that the diffusion of
designs is affected by coordination, organizational and transportation
costs, and that a potential entrant will come up with the right idea is
reduced because of the presence of a larger number of entrants. We show
that when the economy is not initially in a steady state, it can take a
saddle path towards the unique and locally saddle-path stable interior
steady state. Both transitional-dynamics and steady-state behaviours of
our theoretical model are then consistent with, respectively, the
time-series and the cross-sectional evidence.
Journal: Applied Economics
Pages: 2973-2993
Issue: 32
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133896
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133896
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Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:2973-2993
Template-Type: ReDIF-Article 1.0
Author-Name: Chunyang Zhou
Author-X-Name-First: Chunyang
Author-X-Name-Last: Zhou
Author-Name: Xiao Qin
Author-X-Name-First: Xiao
Author-X-Name-Last: Qin
Author-Name: Xundi Diao
Author-X-Name-First: Xundi
Author-X-Name-Last: Diao
Author-Name: Yingchen He
Author-X-Name-First: Yingchen
Author-X-Name-Last: He
Title: Estimating multi-period Value at Risk of oil futures prices
Abstract:
In this study, we estimate the multi-period Value at Risk (VaR) of oil
future prices under a generalized autoregressive conditional
heteroscedasticity with a skewed- residuals
(GARCH-ST) model, which is developed to account for the stylized facts of
oil futures returns, such as serial correlation, volatility clustering,
asymmetry and heavy tails. An efficient approximation algorithm based on
the moment calibration method is developed to compute the multi-period
VaR, and the numerical experiments show that the algorithm can yield good
approximation quality. In the empirical analysis, we find that the
GARCH-ST model can yield superior out-of-sample performance to a
GARCH-normal model or a GARCH- model,
especially when measuring the extreme tail risk. Meanwhile, the square
root of time rule (SRTR) tends to underestimate the multi-period tail
risk, and cannot produce a better performance than the GARCH family
models.
Journal: Applied Economics
Pages: 2994-3004
Issue: 32
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133897
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133897
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Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:2994-3004
Template-Type: ReDIF-Article 1.0
Author-Name: Eric C. Y. Ng
Author-X-Name-First: Eric C. Y.
Author-X-Name-Last: Ng
Author-Name: Ying Chu Ng
Author-X-Name-First: Ying Chu
Author-X-Name-Last: Ng
Title: What explains the total factor productivity gap between OECD economies and the U.S.?
Abstract:
Since 2000, the total factor productivity (TFP) in most of the OECD
economies relative to the United States has been declining. This article
develops an empirical model to study the linkages between relative
differences in TFP gap and relative differences in fundamental factors
(factor gaps). Using panel data for 33 OECD countries, it finds that the
machinery and equipment investment gap, the gap in information and
communication technology penetration related to mobile phone
subscriptions, the economic globalization gap and the institutional
quality gap explain significantly the TFP gap between the OECD economies
and the United States during 2000--2011.
Journal: Applied Economics
Pages: 3005-3019
Issue: 32
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133898
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133898
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Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3005-3019
Template-Type: ReDIF-Article 1.0
Author-Name: Brian M. Mills
Author-X-Name-First: Brian M.
Author-X-Name-Last: Mills
Author-Name: Michael Mondello
Author-X-Name-First: Michael
Author-X-Name-Last: Mondello
Author-Name: Scott Tainsky
Author-X-Name-First: Scott
Author-X-Name-Last: Tainsky
Title: Competition in shared markets and Major League Baseball broadcast viewership
Abstract:
This work evaluates the cross-quality elasticity of related products in
the context of local market Nielsen Local People Meter ratings of Major
League Baseball (MLB) regular season broadcasts from 2010 through 2013
from six teams in three shared markets. We employ a fixed effects panel
regression with multi-way error clustering, finding that fans exhibit
nuanced behaviour related to the absolute quality and relative quality of
the two local teams. Our estimates imply quality-related competition for
viewership between teams in the face of large disparities in quality.
However, when both teams are of high quality, viewership increased beyond
what own-team success would predict alone for the competing team. The
competitive effects are largely dominated by the spillover effects. These
findings point to complementary effects of team success beyond own-team
interest, and bring about an important nuance in the literature on market
definition, competition and substitution in sport.
Journal: Applied Economics
Pages: 3020-3032
Issue: 32
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133899
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133899
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Template-Type: ReDIF-Article 1.0
Author-Name: Ruyi Shi
Author-X-Name-First: Ruyi
Author-X-Name-Last: Shi
Author-Name: Shengbao Ji
Author-X-Name-First: Shengbao
Author-X-Name-Last: Ji
Author-Name: Xiaozhen Wang
Author-X-Name-First: Xiaozhen
Author-X-Name-Last: Wang
Author-Name: Fan Li
Author-X-Name-First: Fan
Author-X-Name-Last: Li
Title: Impacts of star-rated hotel expansion on inbound tourism development: evidence from China
Abstract:
This article applies heterogeneous firm trade theory, developed for the
manufacturing sector, to the hotel and tourism industry to detect
expansion among star-rated hotels in the context of inbound tourism
development at the macro level. This article adopts both a traditional
ordinary least squares (OLS) panel model and a threshold panel model using
data from 31 administrative regions (provinces) in China during the
2004--2013 period. The results reveal remarkable and significant nonlinear
relationships between star-rated hotel expansion and inbound tourism
development, thereby offering sound evidence supporting the research
hypotheses. Star-rated hotel expansion in most provinces clusters in the
standardized threshold between 0.48 and 0.83, while only a few hotels have
realized ‘leapfrog development’ thus far. In addition, as in
the particular case of star-rated hotels, inbound tourism development
should be promoted through investments in human resources rather than
through the exploitation of natural tourism resource endowments. The
implications of our results are that rational development plans can be
made according to different expansion levels of star-rated hotels in
corresponding regions, when both hotel labour productivity and macro
tourism environment are considered.
Journal: Applied Economics
Pages: 3033-3048
Issue: 32
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133900
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133900
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Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3033-3048
Template-Type: ReDIF-Article 1.0
Author-Name: Hooi Hooi Lean
Author-X-Name-First: Hooi
Author-X-Name-Last: Hooi Lean
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Conditional convergence in US disaggregated petroleum consumption at the sector level
Abstract:
We test for convergence in disaggregated petroleum consumption at the
sector level for the United States using the recently proposed GARCH unit
root test, suitable for high frequency data. We find evidence of
convergence for just over half of the series, including total petroleum
consumption in each sector and approximately three quarters of the
disaggregated petroleum consumption series in transportation.
Journal: Applied Economics
Pages: 3049-3061
Issue: 32
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133901
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133901
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Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3049-3061
Template-Type: ReDIF-Article 1.0
Author-Name: E. Kilic
Author-X-Name-First: E.
Author-X-Name-Last: Kilic
Author-Name: S. Cankaya
Author-X-Name-First: S.
Author-X-Name-Last: Cankaya
Title: Consumer confidence and economic activity: a factor augmented VAR approach
Abstract:
This study aims to analyse the effects of the consumer confidence on
economic activity for the US market. We use the empirical factor-augmented
vector autoregression (FAVAR) method, which enables us to incorporate a
wide range of economic activity factors into the analysis. The consumer
confidence index (CCI) is chosen as the principal variable that is
presumed to represent the degree of optimism on the state of economic
activity. The results show that consumer confidence and economic activity
are strongly correlated for manufacturing-related factors, such as
industrial production and inventories. We also observe strong relation
among CCI and personal consumption expenditures, as well as housing market
variables.
Journal: Applied Economics
Pages: 3062-3080
Issue: 32
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133902
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133902
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Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3062-3080
Template-Type: ReDIF-Article 1.0
Author-Name: Ruzhao Gao
Author-X-Name-First: Ruzhao
Author-X-Name-Last: Gao
Author-Name: Bing Zhang
Author-X-Name-First: Bing
Author-X-Name-Last: Zhang
Title: How does economic policy uncertainty drive gold--stock correlations? Evidence from the UK
Abstract:
In this article, we investigate the effects of economic policy uncertainty
(EPU) on correlations between the UK stock market and gold market. We find
that less certain economic policies result in lower correlations, while
more certain economic policies result in higher correlations. The
correlations are symmetric and show no structural breaks caused by the
recent financial crisis. The recent financial crisis has not changed EPU
effects on the correlations. The effects of one positive
one-standard-deviation shock of the logarithmic change rate of the EPU on
the correlations last approximately 19 months.
Journal: Applied Economics
Pages: 3081-3087
Issue: 33
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1133903
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1133903
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Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3081-3087
Template-Type: ReDIF-Article 1.0
Author-Name: George Clarke
Author-X-Name-First: George
Author-X-Name-Last: Clarke
Author-Name: Yue Li
Author-X-Name-First: Yue
Author-X-Name-Last: Li
Author-Name: Lixin Colin Xu
Author-X-Name-First: Lixin Colin
Author-X-Name-Last: Xu
Title: Business environment, economic agglomeration and job creation around the world
Abstract:
This article looks at how economic agglomeration and the business
environment affect job creation. The results suggest that economic
agglomeration is strongly linked to job growth. Modern telecommunications,
access to export markets, concentration of economic activity in large
cities and capacity agglomeration, in particular, are important. In
contrast, many areas of the business environment, including corruption,
macroeconomic stability and infrastructure are not robustly linked to job
growth. The main exception to this is that areas of the business
environment directly related to labour markets are more consistently
linked to job growth than other areas of the business environment.
Journal: Applied Economics
Pages: 3088-3103
Issue: 33
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136392
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136392
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Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3088-3103
Template-Type: ReDIF-Article 1.0
Author-Name: Young Hoon Lee
Author-X-Name-First: Young Hoon
Author-X-Name-Last: Lee
Author-Name: Hayley Jang
Author-X-Name-First: Hayley
Author-X-Name-Last: Jang
Author-Name: Rodney Fort
Author-X-Name-First: Rodney
Author-X-Name-Last: Fort
Title: Just looking for a good game: competitive balance in the Korean Professional Baseball League
Abstract:
Rottenberg’s uncertainty of outcome hypothesis is about preferences
that can vary across fans and sports. We provide the first evidence of the
empirical power of the hypothesis in the Korean Professional Baseball
League (KPBL). In a panel data set, team-level aggregation over years
shows that fans of this league attend in ways consistent with the
hypothesis at the level of game uncertainty and consecutive season
uncertainty, but only the first is statistically significant. KPBL fans
appear to just be looking for a good game. This is consistent with the
nearly complete concentration of post-season participation among a very
few teams outside of the major population centre in Seoul and a lack of
local team identification among KPBL fans. Our work adds to the diversity
of league structures in the competitive balance literature since talent
levels in KPBL are the result of parent company advertising choices rather
than geographic identification. There are research questions and a policy
implication.
Journal: Applied Economics
Pages: 3104-3115
Issue: 33
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136393
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136393
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Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3104-3115
Template-Type: ReDIF-Article 1.0
Author-Name: Wang Pu
Author-X-Name-First: Wang
Author-X-Name-Last: Pu
Author-Name: Yixiang Chen
Author-X-Name-First: Yixiang
Author-X-Name-Last: Chen
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Title: Forecasting the realized volatility in the Chinese stock market: further evidence
Abstract:
In this study, the impact of noise and jump on the forecasting ability of
volatility models with high-frequency data is investigated. A signed jump
variation is added as an additional explanatory variable in the volatility
equation according to the sign of return. These forecasting performances
of models with jumps are compared with those without jumps. Being applied
to the Chinese stock market, we find that the jump variation has a
significant in-sample predictive power to volatility and the predictive
power of the negative one is greater than the positive one. Furthermore,
out-of-sample evidence based on the fresh model confidence set (MCS) test
indicates that the incorporation of singed jumps in volatility models can
significantly improve their forecasting ability. In particular, among the
realized variance (RV)-based volatility models and generalized
autoregressive conditional heteroscedasticity (GARCH) class models, the
heterogeneous autoregressive model of realized volatility (HAR-RV) model
with the jump test and a decomposed signed jump variation have better
out-of-sample forecasting performance. Finally, the use of the decomposed
signed jump variations in predictive regressions can improve the economic
value of realized volatility forecasts.
Journal: Applied Economics
Pages: 3116-3130
Issue: 33
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136394
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136394
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Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3116-3130
Template-Type: ReDIF-Article 1.0
Author-Name: E. Tsanana
Author-X-Name-First: E.
Author-X-Name-Last: Tsanana
Author-Name: X. Chapsa
Author-X-Name-First: X.
Author-X-Name-Last: Chapsa
Author-Name: C. Katrakilidis
Author-X-Name-First: C.
Author-X-Name-Last: Katrakilidis
Title: Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU
Abstract:
This article aims at analysing the issue of conditional convergence in the
new enlarged European Union (EU) over the period 1995--2012 by means of
panel data techniques. We examined the issue of conditional convergence in
the enlarged EU giving particular attention to the effects of corruption
and bureaucracy on growth controlling for a widely used set of explanatory
variables such as investment (domestic and foreign), human capital
formation, inflation, general government final consumption and trade
openness. Furthermore, we examine if growth responds differently to
corruption and bureaucracy in the new EU members by means of two
group-specific interaction variables to capture possible different
responses to corruption and bureaucracy. The analysis reveals evidence of
conditional convergence in the enlarged EU, with investment share, foreign
direct investment, human capital, and country openness appearing as robust
growth drivers. In contrast, inflation and government consumption rather
hamper growth. Furthermore, the effects of corruption and bureaucracy on
growth seem to differ across old and new EU members.
Journal: Applied Economics
Pages: 3131-3147
Issue: 33
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136395
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136395
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Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3131-3147
Template-Type: ReDIF-Article 1.0
Author-Name: Michele Raitano
Author-X-Name-First: Michele
Author-X-Name-Last: Raitano
Author-Name: Francesco Vona
Author-X-Name-First: Francesco
Author-X-Name-Last: Vona
Title: Assessing students’ equality of opportunity in OECD countries: the role of national- and school-level policies
Abstract:
This article analyses the relationship between equality of opportunity and
the characteristics of the educational system, jointly considering
country- and school-level policies. Because school social environment
represents a fundamental channel in shaping educational opportunities, we
consider all policies, recorded in PISA 2012 dataset, that affect the
sorting of students to schools. We show that including sorting policies
enriches the explanation of the socio-economic gradient, that is, the
association between students’ performances and parental background,
with respect to previous studies including only country-level features.
The negative impact of early tracking on equality of opportunity is
overvalued without including other sorting policies, while grouping
students’ within-school by ability increases the socio-economic
gradient and a greater students’ heterogeneity in the school
reduces the gradient.
Journal: Applied Economics
Pages: 3148-3163
Issue: 33
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136396
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136396
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Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3148-3163
Template-Type: ReDIF-Article 1.0
Author-Name: J. D. Pitts
Author-X-Name-First: J. D.
Author-X-Name-Last: Pitts
Author-Name: B. Evans
Author-X-Name-First: B.
Author-X-Name-Last: Evans
Title: The role of conference externalities and other factors in determining the annual recruiting rankings of football bowl subdivision (FBS) teams
Abstract:
In this article, we analyse the impact of school, head coach and
conference characteristics on a college football team’s annual
recruiting ranking. Utilizing panel data collected from various sources
covering 2002--2014, we find that measures of recent school success such
as having winning seasons and finishing seasons ranked in the Associated
Press (AP) top 25 poll have a positive impact on a team’s
recruiting ranking. Similarly, schools with more successful head coaches
tend to earn better recruiting classes, while schools facing bowl bans,
scholarship restrictions and probation tend to earn worse recruiting
classes. Various measures of conference achievement indicate that
conference externalities in recruiting may indeed be positive as is often
suggested; however, there is much potential for a negative externality as
well.
Journal: Applied Economics
Pages: 3164-3174
Issue: 33
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136397
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136397
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Handle: RePEc:taf:applec:v:48:y:2016:i:33:p:3164-3174
Template-Type: ReDIF-Article 1.0
Author-Name: Jakob B. Madsen
Author-X-Name-First: Jakob B.
Author-X-Name-Last: Madsen
Author-Name: Iqtiar Mamun
Author-X-Name-First: Iqtiar
Author-X-Name-Last: Mamun
Title: Has the capital accumulation in the Asian miracle economies been fuelled by growth?
Abstract:
The Asian growth miracle is often attributed to factor accumulation under
the implicit assumption that savings, broadly defined, have been high and
increasing due to exogenous forces. Using data for India, Indonesia,
Korea, Singapore and Taiwan over the period 1870--2011 this article
examines the causal relationship between growth and saving. The response
of growth to savings is first estimated using instruments to generate
exogenous variation in savings rates. The residual variation in growth
that is not driven by savings is then used as an
instrument to estimate the effect of growth on savings. The estimates show
that the spectacular saving rates in the Asian miracle economies have been
fuelled by growth, and not the other way around.
Journal: Applied Economics
Pages: 3175-3194
Issue: 34
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136398
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136398
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Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3175-3194
Template-Type: ReDIF-Article 1.0
Author-Name: Sanja Samirana Pattnayak
Author-X-Name-First: Sanja Samirana
Author-X-Name-Last: Pattnayak
Author-Name: Alka Chadha
Author-X-Name-First: Alka
Author-X-Name-Last: Chadha
Title: Is health care a luxury? The debate revisited with new evidence from emerging economies
Abstract:
This paper studies the long-run relationship between health care
expenditure and income using a panel data set of emerging economies over
the period 1995--2012. The results show that expenditure on health care
and income are non-stationary and cointegrated. After controlling for
cross-sectional dependence and unobserved heterogeneity among different
countries, we find that the income elasticity of health care is less than
1, indicating that health care is a necessity and not a luxury. Government
expenditure and out-of-pocket expenditure turn out to be important
determinants of health care expenditure. Among non-monetary factors,
results show that old age dependency and female education seem to have
significant bearings on health care expenditures. Policy recommendations
suggest that government should increase spending on health care in
emerging economies since higher incomes may not automatically translate
into higher health care spending by the people of these countries.
Journal: Applied Economics
Pages: 3195-3207
Issue: 34
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136399
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136399
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Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3195-3207
Template-Type: ReDIF-Article 1.0
Author-Name: Tong Shu
Author-X-Name-First: Tong
Author-X-Name-Last: Shu
Author-Name: Huaisi Liao
Author-X-Name-First: Huaisi
Author-X-Name-Last: Liao
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Author-Name: Lu Gan
Author-X-Name-First: Lu
Author-X-Name-Last: Gan
Title: Analysing remanufacturing decisions of supply chain members in uncertainty of consumer preferences
Abstract:
This article formulates a gaming model of the closed-loop supply chain
with manufacturers (as the leader), sellers and consumers where consumers
may or may not be willing to pay remunerative price for remanufactured
products vis-à-vis new products. In the model, manufacturers produce
new as well as remanufactured products, whereas sellers distribute them.
In stable circumstances, this article presents the functional formula of
the optimal manufacturing pricing decisions. The results show that when
the cost of new products is significantly lower than that of
remanufactured ones, manufacturers choose to produce new products only.
When the difference between cost of new and remanufactured products is
moderate, manufacturers tend to produce both new and remanufactured
products, and in some regions, production of new and remanufactured
products is proportional to each other. When the difference between cost
of new and remanufactured products is enormous, their production and sale
tend to stop. Also, this article analyses the effects of varying cost of
new and remanufactured products and the recycling rate on pricing
decisions of supply chain members. This article contributes to the
management of manufacturers’ and sellers’ remanufacturing
decisions and also provides advice on how governments can guide consumer
preferences.
Journal: Applied Economics
Pages: 3208-3227
Issue: 34
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136400
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136400
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Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3208-3227
Template-Type: ReDIF-Article 1.0
Author-Name: Anshul Jain
Author-X-Name-First: Anshul
Author-X-Name-Last: Jain
Author-Name: Pratap Chandra Biswal
Author-X-Name-First: Pratap Chandra
Author-X-Name-Last: Biswal
Author-Name: Sajal Ghosh
Author-X-Name-First: Sajal
Author-X-Name-Last: Ghosh
Title: Volatility--volume causality across single stock spot--futures markets in India
Abstract:
This study examines the causal relationships between volatility and volume
across spot and futures market for the 50 constituent stocks of the CNX
NIFTY Index. Granger non-causality tests implemented using vector
autoregression (VAR) and asymmetric VAR models indicate the presence of
significant causal relations from both the spot and futures volume to both
the spot and futures volatility. Bidirectional causal relationships
between spot and futures volume were observed for almost all stocks but
few stocks displayed a similar relationship between volatilities. The
results highlight the importance of volume in absorbing information and
its behaviour as the conduit of information.
Journal: Applied Economics
Pages: 3228-3243
Issue: 34
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136401
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136401
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Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3228-3243
Template-Type: ReDIF-Article 1.0
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Fernando Perez de Gracia
Author-X-Name-First: Fernando
Author-X-Name-Last: Perez de Gracia
Title: Persistence, mean reversion and non-linearities in the US housing prices over 1830--2013
Abstract:
The objective of this study is to provide a direct estimate of the degree
of persistence of measures of nominal and real house prices for the US
economy, covering the longest possible annual sample of data, namely
1830--2013. The estimation of the degree of persistence accommodates for
non-linear (deterministic) trends using Chebyshev polynomials in time. In
general, the results show a high degree of persistence in the series along
with a component of non-linear behaviour. In general, if we assume
uncorrelated errors, non-linearities are observed in both nominal and real
prices, but this hypothesis is rejected in favour of linear models for the
log-transformation of the data. However, if autocorrelated errors are
permitted, non-linearities are observed in all cases, and mean reversion
is found in the case of logged prices, though given the wide confidence
intervals, the unit root null hypothesis cannot be rejected in these
cases.
Journal: Applied Economics
Pages: 3244-3252
Issue: 34
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1136402
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1136402
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Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3244-3252
Template-Type: ReDIF-Article 1.0
Author-Name: Celia Bilbao
Author-X-Name-First: Celia
Author-X-Name-Last: Bilbao
Author-Name: Luis Valdés
Author-X-Name-First: Luis
Author-X-Name-Last: Valdés
Title: Evaluation of the profitability of quality labels in rural tourism accommodation: a hedonic approach using propensity score matching
Abstract:
In recent years, quality labels for the Spanish tourism sector have been
developed as part of a competitive strategy focused on the differentiation
of the product. Given this development, it is interesting to analyse the
profitability of quality labels for the accommodation owners and managers.
In particular, this article calculates the profitability of a rural
tourism quality label. Through the use of the hedonic price approach, the
market valuation of the quality label for rural self-catering cottages is
obtained. This valuation is subsequently compared with the expenses
incurred by establishments in achieving the quality label. In order to
address the usual methodological problems associated with the endogeneity,
prior to application of the hedonic approach, the propensity score
matching is used. The results indicate that possessing a quality label has
a positive impact on the profitability of rural tourism.
Journal: Applied Economics
Pages: 3253-3263
Issue: 34
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137546
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137546
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Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3253-3263
Template-Type: ReDIF-Article 1.0
Author-Name: Filomena Pietrovito
Author-X-Name-First: Filomena
Author-X-Name-Last: Pietrovito
Title: Do price-earnings ratios explain investment decisions better than Tobin’s q? Evidence from German firm-level data
Abstract:
This article tests the additional information content of price-earnings
ratios, with respect to Tobin’s q, in explaining
firms’ investment behaviour. While Tobin’s
q describes the expected future earnings related to those
projected by the book value, the price-earnings ratio
compares future growth of earnings based on the projection of
current earnings. In other words, a high price-earnings
ratio might indicate that investors are willing to rely on future earnings
growth, even though current earnings are low. By using an unbalanced panel
of about 500 listed firms from Germany over the period 1987--2007, we find
that including the price-earnings ratio in the investment equation does
not change the explanatory power of Tobin’s q.
Most notably, the price-earnings ratio exerts a positive and significant
impact on investment. These results are robust to the inclusion of a
measure of the firm’s internal funds and of fixed effects and also
to the use of different estimators.
Journal: Applied Economics
Pages: 3264-3276
Issue: 34
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137547
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137547
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Handle: RePEc:taf:applec:v:48:y:2016:i:34:p:3264-3276
Template-Type: ReDIF-Article 1.0
Author-Name: Jian Chen
Author-X-Name-First: Jian
Author-X-Name-Last: Chen
Author-Name: Chenghu Ma
Author-X-Name-First: Chenghu
Author-X-Name-Last: Ma
Title: Risk aversion, fanning preference and volatility smirk on S&P 500 index options
Abstract:
This article proposes a novel way of pricing S&P 500 index options in the
presence of jump risk. Our analysis is built upon an equilibrium option
pricing rule for a representative agent economy. In particular, we use the
weighted utility’s certainty equivalent to specify agent’s
risk preference, which displays a fanning-out characteristic. We find that
the fanning effect captures a remarkably large portion of the total market
risk premium implicit in options. As a result, the model with fanning
effect generates pronounced volatility smirks.
Journal: Applied Economics
Pages: 3277-3292
Issue: 35
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137548
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137548
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Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3277-3292
Template-Type: ReDIF-Article 1.0
Author-Name: John E. Ataguba
Author-X-Name-First: John E.
Author-X-Name-Last: Ataguba
Title: Assessing equitable health financing for universal health coverage: a case study of South Africa
Abstract:
This article argues that an assessment of progressivity over time can
provide an indication of progress towards a ‘more’
progressive or a ‘less’ regressive health financing system
and can be useful to policymakers. It introduces a framework to
characterize ‘shifts’ in progressivity in health financing
between two time periods using the popularly known Kakwani index of
progressivity and other associated indices. It also decomposes the
‘shifts’ in progressivity into the relative contributions of
the changes in income distribution and the changes in the distribution of
health payments. Further, it proposes graphics that statistically analyses
how the ‘shifts’ in progressivity vary along the
distribution of income. A pro-poor (pro-rich) shift implies that the
health financing mechanism is becoming more (less) progressive or less
(more) regressive between two time periods. A proportional shift means
that progressivity is constant between the two periods. This framework is
applied to nationally representative household data from South Africa. It
emerged that such characterization is a very useful tool for policy in
assessing progress towards equitable health financing.
Journal: Applied Economics
Pages: 3293-3306
Issue: 35
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137549
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137549
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Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3293-3306
Template-Type: ReDIF-Article 1.0
Author-Name: Sylvi Rzepka
Author-X-Name-First: Sylvi
Author-X-Name-Last: Rzepka
Author-Name: Marcus Tamm
Author-X-Name-First: Marcus
Author-X-Name-Last: Tamm
Title: Local employer competition and training of workers
Abstract:
The new training literature suggests that in a monopsonistic market
employers will not only pay for firm-specific training but also pay for
general training if the risk of poaching is limited. This implies that
training should decrease with more competition for employees among firms.
Using worker-level data for Germany on training participation and on
training duration, the authors find empirical support for this hypothesis.
Specifically, the authors find that employees are significantly less
likely to participate in training if the local density of firms in a
sector is high and they have shorter training durations when the local
sector concentration is low.
Journal: Applied Economics
Pages: 3307-3321
Issue: 35
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137550
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137550
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Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3307-3321
Template-Type: ReDIF-Article 1.0
Author-Name: G. Geronikolaou
Author-X-Name-First: G.
Author-X-Name-Last: Geronikolaou
Author-Name: G. Papachristou
Author-X-Name-First: G.
Author-X-Name-Last: Papachristou
Title: Lottery pricing and price elasticity dispersion in the UK and Canada
Abstract:
We estimate effective price elasticities for different quantiles of the
demand distribution of the UK National Lottery and the Canadian Lotto 649.
We show that price elasticities vary significantly from draw to draw and
have a tendency to increase with lottery participation and jackpot size.
Our findings indicate that setting lottery rules on the basis of mean
effective price elasticities should be faced with caution because expected
profits are negatively related to the evident variation of elasticities
among lottery draws. We also simulate alternative active rollover
distributions and show that limiting the rollover accumulation by
withholding portions and ploughing them back in future nonrollover draws
is potentially profitable.
Journal: Applied Economics
Pages: 3322-3328
Issue: 35
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137551
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137551
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Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3322-3328
Template-Type: ReDIF-Article 1.0
Author-Name: Searat Ali
Author-X-Name-First: Searat
Author-X-Name-Last: Ali
Author-Name: Benjamin Liu
Author-X-Name-First: Benjamin
Author-X-Name-Last: Liu
Author-Name: Jen Je Su
Author-X-Name-First: Jen Je
Author-X-Name-Last: Su
Title: What determines stock liquidity in Australia?
Abstract:
Using an index of corporate governance quality (CGQ), we provide the first
robust evidence of the determinants of stock liquidity in Australia. We
assume that CGQ affects stock liquidity because effective governance
decreases information asymmetries between insiders (e.g. managers) and
outsiders (e.g. investors), as well as among outsiders, by improving
information transparency of a firm. Consistent with agency theory, this
study, using 435 large capitalization firms over the period from 2001 to
2008, finds a significant positive relationship between CGQ and stock
liquidity, suggesting that better governed firms have a higher level of
stock liquidity. These findings are robust to alternative proxies of CGQ,
stock liquidity and endogeneity bias.
Journal: Applied Economics
Pages: 3329-3344
Issue: 35
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137552
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137552
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Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3329-3344
Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Hsun Lu
Author-X-Name-First: Tsung-Hsun
Author-X-Name-Last: Lu
Author-Name: Yung-Ming Shiu
Author-X-Name-First: Yung-Ming
Author-X-Name-Last: Shiu
Title: Can 1-day candlestick patterns be profitable on the 30 component stocks of the DJIA?
Abstract:
We set out in this study to conduct a comprehensive analysis of the
profitability of every possible 1-day candlestick pattern using data on
the 30 component stocks of the Dow Jones Industrial Average index. Our
study involves a very lengthy sample period running from January 1974 to
December 2009, with the results revealing a noticeable increase in the
predictive power of 1-day candlestick patterns from 1992 onwards. Our
evidence shows that several of the patterns may well prove to be
profitable for the Dow Jones Industrial Average stocks. The robustness of
our results is subsequently confirmed based upon a bootstrap analysis.
Journal: Applied Economics
Pages: 3345-3354
Issue: 35
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137553
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137553
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Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3345-3354
Template-Type: ReDIF-Article 1.0
Author-Name: José Manuel Cordero
Author-X-Name-First: José Manuel
Author-X-Name-Last: Cordero
Author-Name: Manuel Muñiz
Author-X-Name-First: Manuel
Author-X-Name-Last: Muñiz
Author-Name: Cristina Polo
Author-X-Name-First: Cristina
Author-X-Name-Last: Polo
Title: The determinants of cognitive and non-cognitive educational outcomes: empirical evidence in Spain using a Bayesian approach
Abstract:
This article aims to extend the literature about the role played by
socio-economic and family background in educational outcomes by comparing
the determinants of two different dimensions of educational output:
academic achievement and non-cognitive traits. To do this, we explore the
information provided by a self-report survey developed specifically for
the purpose of this research. This will provide us with an innovative
measure of non-cognitive performance based on particular personal traits,
such as responsibility, effort, motivation and critical capacity, as well
as a common measure of cognitive proficiency. We use a Bayesian approach
to estimate the potential influence of multiple individual and family
variables on both dimensions of educational output. From our results, we
find that, despite some similarities, there are several important
divergences with regard to some socio-economic variables that have been
traditionally considered to be the most influential determinants of
academic achievement which do not appear to have a significant impact on
non-cognitive outcomes.
Journal: Applied Economics
Pages: 3355-3372
Issue: 35
Volume: 48
Year: 2016
Month: 7
X-DOI: 10.1080/00036846.2015.1137554
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1137554
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Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3355-3372
Template-Type: ReDIF-Article 1.0
Author-Name: Jinpeng Ma
Author-X-Name-First: Jinpeng
Author-X-Name-Last: Ma
Author-Name: Max Tang
Author-X-Name-First: Max
Author-X-Name-Last: Tang
Author-Name: Yuming Wang
Author-X-Name-First: Yuming
Author-X-Name-Last: Wang
Title: Value of hedge and expected returns
Abstract:
We demonstrate how it is possible to generate value for an investor with a
hedge attached to the buy-and-hold strategy of an S&P 500 index fund. We
study the S&P 500 index portfolio (not including dividends) and the
value-weighted S&P 500 index portfolio (including dividends) of the Center
for Research in Securities Prices for 1967:01--2011:12, using the capacity
utilization and the unemployment rates in real time to determine if a
hedge position should be initiated or closed. A hedge is initiated if the
capacity utilization, the unemployment rate or a combination of the two
signals a contraction in the real economy. The hedge position is closed if
it signals otherwise an expansion. We use utility gains (Campbell and
Thompson 2008), the manipulation-proof performance measure (MPPM)
statistics (Ingersoll et al. 2007) and the P-Sharpe ratio (Bailey and
López de Prado 2012) to evaluate the performance of a particular
hedge strategy. The empirical results show that there are infinitely many
hedges that can generate positive utility gains, higher MPPM statistics
and higher P-Sharpe ratios.
Journal: Applied Economics
Pages: 3373-3398
Issue: 36
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139675
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139675
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Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3373-3398
Template-Type: ReDIF-Article 1.0
Author-Name: Amar I. Anwar
Author-X-Name-First: Amar I.
Author-X-Name-Last: Anwar
Author-Name: Mazhar Y. Mughal
Author-X-Name-First: Mazhar Y.
Author-X-Name-Last: Mughal
Title: Migrant remittances and fertility
Abstract:
This study examines the role of migrants’ remittances in developing
countries’ fertility transition. Employing an unbalanced panel of
South Asian countries and controlling for various economic and
socio-demographic factors, we find that remittances are significantly
associated with a lower number of children born to women of childbearing
age. This suggests the remittances’ substitution effect to be at
play rather than the income effect, and may result from decreased need for
children for financing the household’s future needs as well as from
better access to healthcare and contraceptive methods available to migrant
households. Remittances’ association with fertility appears to be
more important than the transfer of fertility norms from migrants’
host countries. The monetary aspects of international migration may
therefore be more important for the region’s demographic transition
than social remittances.
Journal: Applied Economics
Pages: 3399-3415
Issue: 36
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139676
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139676
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Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3399-3415
Template-Type: ReDIF-Article 1.0
Author-Name: R. Xie
Author-X-Name-First: R.
Author-X-Name-Last: Xie
Author-Name: O. Isengildina-Massa
Author-X-Name-First: O.
Author-X-Name-Last: Isengildina-Massa
Author-Name: G. P. Dwyer
Author-X-Name-First: G. P.
Author-X-Name-Last: Dwyer
Author-Name: J. L. Sharp
Author-X-Name-First: J. L.
Author-X-Name-Last: Sharp
Title: The impact of public and semi-public information on cotton futures market
Abstract:
This study estimated the impact of all major public and semi-public
reports on the cotton futures market from 1995 through 2012. The
estimation was based on the event study approach with the events measured
by the release of five major reports: Export Sales, Crop Progress, World
Agricultural Supply and Demand Estimates (WASDE) and Prospective Plantings
(public reports from US Department of Agriculture) and Cotton This Month
(semi-public report from International Cotton Advisory Committee). The
best-fitting IGARCH(1,1)-t model that accounted for the day-of-week,
seasonality and stock levels was used to measure the report effects on
daily nearby cotton close-to-close futures returns. Prospective Plantings
and WASDE reports appeared to be the most important sources of information
in the cotton markets moving the conditional standard deviation of returns
by an average of 14.4 and 9.6 percentage points, respectively. However,
significant market reaction was not found for the other three reports. Our
analysis revealed that, in the presence of clustering, ignoring the impact
of other reports would have resulted in about 18% overestimation of WASDE
impact.
Journal: Applied Economics
Pages: 3416-3431
Issue: 36
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139677
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139677
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Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3416-3431
Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: The franc shock and Swiss GDP: how long does it take to start feeling the pain?
Abstract:
The article addresses the question on what is the typical time horizon
over which a full transmission of movements in the real exchange rate
takes place into real economy. We base our analysis on the mixed-frequency
small-scale dynamic factor model (DFM) proposed by Siliverstovs in 2012
fitted to the Swiss data. In this article, we augment the benchmark model
with the real exchange rate of the Swiss franc vis-a-vis currencies of its
24 trading partners, while keeping the rest of model specification intact.
We are interested in investigating the relationship between the common
latent factor, representing the Swiss business cycle, and the real
exchange rate. We explore the temporal relationship between these two
variables by varying the time lag with which the real exchange rate enters
the factor model by recording the magnitude and statistical significance
of the factor loading coefficient in the equation pertaining to the real
exchange rate variable. Our main conclusion is that the fluctuations in
the exchange rate start influencing real economy after 1 month and their
effect is practically over after 13 months. The largest effect is recorded
at the time horizon of about 6 to 9 months.
Journal: Applied Economics
Pages: 3432-3441
Issue: 36
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139678
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139678
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Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3432-3441
Template-Type: ReDIF-Article 1.0
Author-Name: Q. Li
Author-X-Name-First: Q.
Author-X-Name-Last: Li
Author-Name: C.H. Peng
Author-X-Name-First: C.H.
Author-X-Name-Last: Peng
Title: The stock market effect of air pollution: evidence from China
Abstract:
In financial studies, environmental stimuli such as sunshine, temperature,
and daylight are often used as proxies for people’s collective mood
swings to test their effects on the stock market. China has experienced
serious air pollution problems in recent years, and Chinese public
awareness of air pollution has soared. In this paper, we use China as a
natural experiment to investigate the effect on stock returns of depressed
moods induced by air pollution. Daily air-pollution data from 2005 to 2014
are analysed and the results obtained from the empirical research show
that a contemporaneous negative and a two-day lagged positive relationship
exists between air pollution levels and stock returns over this time
period. The relationship is mediated by the influence of air pollution on
investment decisions. The results also indicate that the effect is
weakened for companies that protect air quality, but no stronger effect is
detected for polluting companies. The findings imply that air pollution is
a behavioural factor with some connection to stock returns in China.
Journal: Applied Economics
Pages: 3442-3461
Issue: 36
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139679
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139679
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Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3442-3461
Template-Type: ReDIF-Article 1.0
Author-Name: Raul Ibarra
Author-X-Name-First: Raul
Author-X-Name-Last: Ibarra
Title: How important is the credit channel in the transmission of monetary policy in Mexico?
Abstract:
This article empirically examines the importance of the credit channel of
monetary policy in Mexico for the period 2004--2013. We estimate a vector
autoregressive (VAR) model to analyse the effects of a monetary policy
shock on real output, and we also use a threshold VAR model to investigate
asymmetric effects of contractionary and expansionary policies. The
empirical results suggest that a contractionary monetary policy results in
a fall in the supply of loans together with an increase in the spread
between the lending and deposit rate. To the extent that some borrowers
are dependent on bank loans for credit, the reduced supply of loans
amplifies the effects of monetary policy on output associated with the
traditional interest rate channel. Our results also suggest that the
importance of the credit channel is larger for contractionary shocks than
for expansionary shocks.
Journal: Applied Economics
Pages: 3462-3484
Issue: 36
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139680
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139680
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Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3462-3484
Template-Type: ReDIF-Article 1.0
Author-Name: G. R. Chen
Author-X-Name-First: G. R.
Author-X-Name-Last: Chen
Title: Dynamic Model for Market Competition and Price Rigidity
Abstract:
This article presents a price floor model in which durability, unit costs
and production period are factors in explaining price rigidity. This
article elaborates that cost structure plays an essential role in
resolving the inconclusive relationship between market concentration and
price rigidity. When the industry is characterized by decreasing returns
of scale, the degree of price flexibility decreases as market competition
intensifies. The reverse is true when the industry exhibits increasing
returns of scale. The factors that cause price rigidity also foster price
adjustment asymmetry and price adjustment lag. During times of recession,
the model exhibits upward price flexibility as costs increase, but
downward price rigidity as costs decrease. Even under forward-looking
expectations, the way in which firms adjust prices could look as though
they have adaptive expectations. If price stickiness is a characteristic
of market competition, then public policies determined by price level
could be too drastic for firms in competitive markets.
Journal: Applied Economics
Pages: 3485-3496
Issue: 36
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139681
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139681
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Handle: RePEc:taf:applec:v:48:y:2016:i:36:p:3485-3496
Template-Type: ReDIF-Article 1.0
Author-Name: Volkan Recai Cetin
Author-X-Name-First: Volkan Recai
Author-X-Name-Last: Cetin
Author-Name: Serdal Bahce
Author-X-Name-First: Serdal
Author-X-Name-Last: Bahce
Title: Measuring the efficiency of health systems of OECD countries by data envelopment analysis
Abstract:
This study aims to assess the efficiency of health sectors of 34 OECD
countries by employing input-oriented data envelopment analysis (DEA)
method both under constant and variable returns to scale assumptions. In
the analysis, the number of doctors, number of patient beds and health
expenditure per capita were used as input variables and life expectancy at
birth and infant mortality rate were used as outputs. At the first stage,
DEA analysis was performed for 34 countries, and at the second stage
outlier 8 countries were eliminated to form a more homogeneous group and
to achieve more accurate results. 11 of the 26 countries were found to
have efficient health systems, and there is room for efficiency
improvements in health sector in the remaining 15 countries.
Journal: Applied Economics
Pages: 3497-3507
Issue: 37
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139682
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139682
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Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3497-3507
Template-Type: ReDIF-Article 1.0
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Author-Name: Jeng-Yan Tsai
Author-X-Name-First: Jeng-Yan
Author-X-Name-Last: Tsai
Author-Name: Rosemary Jou
Author-X-Name-First: Rosemary
Author-X-Name-Last: Jou
Title: Equities of scope as merger incentives under capital regulation: narrow versus synergy banking valuation
Abstract:
The call options theory of corporate security valuation is applied to
narrow-banking contingent claims of one bank, while the cap options theory
is applied to synergy-banking contingent claims of another bank. This
article investigates efficiency gains specified as equities of scope
associated with the likelihood of the two banks involved in merger under
capital regulation. We find that merger incentives are encouraged when the
narrowing banking is conducted by the consolidated bank, whereas
discouraged when the synergy banking is conducted. Raising bank capital
requirement leads to an increased interest margin of the consolidated bank
with the narrow banking valuation; however, to a decreased margin of the
consolidated bank with the synergy banking valuation. An increase in the
capital regulation reduces the merger incentives in the narrow banking
valuation whereas increases the merger disincentive in the synergy banking
valuation. These findings are consistent with the organizational theory
that predicts a comparative advantage of narrow banking proposals in bank
mergers.
Journal: Applied Economics
Pages: 3508-3525
Issue: 37
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139683
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139683
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Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3508-3525
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Yang
Author-X-Name-First: Wei
Author-X-Name-Last: Yang
Title: Are contributions of time and money substitutes or complements?
Abstract:
This article empirically investigates the relationship between donations
of time and money using Canadian tax policy reforms that changed the tax
price of charitable donations. The 1988 reform where a charitable tax
deduction was converted to a credit and the 2000 reform in provincial
income taxes provide tax price variations plausibly exogenous to
individuals’ unobserved heterogeneity. Our estimates on cross-price
effects imply that individuals make more time donations as the tax price
of charitable donations increases and hence money and time donations are
substitutes, as some theories would imply. This contrasts with earlier
findings using cross-sectional data.
Journal: Applied Economics
Pages: 3526-3537
Issue: 37
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1139684
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1139684
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Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3526-3537
Template-Type: ReDIF-Article 1.0
Author-Name: Adelina Gschwandtner
Author-X-Name-First: Adelina
Author-X-Name-Last: Gschwandtner
Author-Name: Michael Hauser
Author-X-Name-First: Michael
Author-X-Name-Last: Hauser
Title: Profit persistence and stock returns
Abstract:
This article attempts to assemble further empirical evidence on the
relationship between the product and the financial market. Drawing back on
work in industrial organization, we analyse the relationship between
profit persistence and factor-adjusted stock returns
looking at about 2000 listed US firms over the last 34 years. While
the relationship between (current, lagged and unexpected) profits/earnings
and returns has been extensively analysed before, to our knowledge this is
the first study to look at the relationship between stock returns and
profit persistence. We interpret profit persistence as a
result of market competition and innovation of the firm. It is shown that
firm-specific long-run profit persistence after
correction for other additional economic fundamentals of the firm has a
positive impact on four-factor adjusted returns and a negative impact on
their volatility.
Journal: Applied Economics
Pages: 3538-3549
Issue: 37
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142652
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142652
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Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3538-3549
Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Cheng Lai
Author-X-Name-First: Hung-Cheng
Author-X-Name-Last: Lai
Author-Name: Tseng-Chan Tseng
Author-X-Name-First: Tseng-Chan
Author-X-Name-Last: Tseng
Author-Name: Sz-Chi Huang
Author-X-Name-First: Sz-Chi
Author-X-Name-Last: Huang
Title: Combining value averaging and Bollinger Band for an ETF trading strategy
Abstract:
The decision-making of investors is highly influenced by their feelings.
According to behavioural finance, investor greed and fear would form
irrational behaviour and affect their portfolio allocation. Although
well-known mechanical investment strategy of dollar cost averaging (DCA)
and value averaging (VA) could eliminate the problems of when to purchase,
there are still some disadvantages to consider. For example, using a DCA
strategy may be able to decrease volatility in portfolio so as to not
effect investment decision, but it gives no rule for selling and may
increase the opportunity cost of time if investors start deducted at peak
prices. On the other hand, VA gives more aggressive sell signals to
control the value of the portfolio to the level desired, but the investor
may not have enough money purchase of a large number of shares in sharp
decline period. Therefore, we use VA as main strategy and Bollinger Band
as assist indicator for check for volatility for entry or exit. Through
analysis and simulation, the new strategy we design does improve the
performance during both bull and bear market periods.
Journal: Applied Economics
Pages: 3550-3557
Issue: 37
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142653
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142653
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Template-Type: ReDIF-Article 1.0
Author-Name: W.D. Chen
Author-X-Name-First: W.D.
Author-X-Name-Last: Chen
Title: Detecting multiple factors in panel data: an application on the growth of local regions in China
Abstract:
Due to unbalanced growth in China’s local regions, we construct a
panel data model with multiple common factors to examine the differences
among the growth factors in these areas. This article shows the various
impacts from the supply and demand sides on economic growth. Different
from the demand side, the supply-side impacts have permanent influences.
This article focuses on these deep and profound impacts to explain the
reasons behind China’s fast economic growing. By using data on 27
regions from 1958 to 2013, we summarize the main permanent influences
along three lines. The first comes from the coastal regions, which have
learned modern technology and systems from foreign companies, such as in
Guangdong, Zhejiang, Fujian and Liaoning. The second comes from big
cities, such as Beijing and Shanghai, in which a huge migration has given
the companies opportunities to recruit excellent workers, making the
resource allocation specialized and more efficient. The third is from the
government’s major public works, which have improved areas’
infrastructure and assisted long-run economic growth, such as for Sichuan,
Guangxi and Yunnan.
Journal: Applied Economics
Pages: 3558-3568
Issue: 37
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142654
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142654
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Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3558-3568
Template-Type: ReDIF-Article 1.0
Author-Name: Gilbert Cette
Author-X-Name-First: Gilbert
Author-X-Name-Last: Cette
Author-Name: Rémy Lecat
Author-X-Name-First: Rémy
Author-X-Name-Last: Lecat
Author-Name: Ahmed Ould Ahmed Jiddou
Author-X-Name-First: Ahmed
Author-X-Name-Last: Ould Ahmed Jiddou
Title: Margin rate and the cycle: the role of trade openness
Abstract:
Using three datasets of French manufacturing firms, this article studies
the role of trade openness, in relation with the cycle, as a determinant
of company margin rate. Margin rates increase as capacity utilization
tightens (and vice versa), reflecting the procyclicality of margin rates.
However, high import rates are limiting this procyclicality: when
capacities are tight, domestic producers may not be able to serve demand,
but foreign producers may substitute for them if they are already present
on the market as reflected by the level of import rates.
Journal: Applied Economics
Pages: 3569-3575
Issue: 37
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142655
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142655
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Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3569-3575
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Wanke
Author-X-Name-First: Peter
Author-X-Name-Last: Wanke
Author-Name: Vincent Blackburn
Author-X-Name-First: Vincent
Author-X-Name-Last: Blackburn
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Title: Cost and learning efficiency drivers in Australian schools: a two-stage network DEA approach
Abstract:
This article explore performance issues in Australian public schools,
using a two-stage DEA network model, which accounts simultaneously for
both cost and learning efficiency levels. In the cost efficiency stage,
different types of expenses and investments are employed to support a
given number of students, teachers and administrative staff. In the
learning efficiency stage, these groups of individuals help to produce
important outputs related to performance in student tests and school
rankings. Results indicate that Australian public schools are
heterogeneous. Policy implications are also discussed.
Journal: Applied Economics
Pages: 3577-3604
Issue: 38
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142656
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142656
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Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3577-3604
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo F. Ghilardi
Author-X-Name-First: Matteo F.
Author-X-Name-Last: Ghilardi
Author-Name: Sergio Sola
Author-X-Name-First: Sergio
Author-X-Name-Last: Sola
Title: Investment scaling up and the role of government
Abstract:
This article studies the fiscal and welfare implications of a scaling up
of public investment when the government is subject to inefficiencies on
the spending and on the tax collection side. In our simulations, the
scaling up of public investments results in higher long-run output and
consumption levels but requires a fiscal stabilization package in order to
preserve fiscal sustainability. The effects on consumers’ welfare
after the fiscal adjustment are nontrivial. Our welfare analysis shows
that consumers’ welfare is increased when the government smooths
the fiscal adjustment via higher borrowing and not through an increase in
taxation. Moreover, the comparison between several stabilization packages
via tax adjustment shows that higher welfare is achieved when the
government relies mostly on taxation of capital as this allows higher
levels of consumption. Lower fiscal costs that do not undermine fiscal
sustainability can however be achieved if the government manages to reduce
inefficiency in tax collection. Finally, we consider a change in the trade
regime that causes a decline in revenues. We find that the higher fiscal
burden required to preserve fiscal sustainability would completely wipe
out the welfare gain of higher public investments.
Journal: Applied Economics
Pages: 3605-3625
Issue: 38
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142657
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142657
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Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3605-3625
Template-Type: ReDIF-Article 1.0
Author-Name: Bin Liu
Author-X-Name-First: Bin
Author-X-Name-Last: Liu
Author-Name: Charles Cullinan
Author-X-Name-First: Charles
Author-X-Name-Last: Cullinan
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Author-Name: Fangjun Wang
Author-X-Name-First: Fangjun
Author-X-Name-Last: Wang
Title: Loan guarantees and the cost of debt: evidence from China
Abstract:
In this article, we examine the potential influence of loan guarantees and
the nature of ownership on a company’s cost of debt. Using data on
Chinese A-share listed companies from 2007 to 2014, we find that
guaranteeing another entity’s debt significantly increases the
guarantor’s cost of its own debt. Regarding the nature of
ownership, our results indicate that the cost of debt for state-owned
enterprises (SOEs) is lower than that for non-SOEs. Among SOEs, firms
controlled by the central government have lower cost of debt than firms
controlled by local governments. We also find some evidence that local
government ownership mitigates the effects of loan guarantees on the cost
of a guarantor’s own debt.
Journal: Applied Economics
Pages: 3626-3643
Issue: 38
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142658
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142658
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Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3626-3643
Template-Type: ReDIF-Article 1.0
Author-Name: Hyunbae Chun
Author-X-Name-First: Hyunbae
Author-X-Name-Last: Chun
Author-Name: Jung-Wook Kim
Author-X-Name-First: Jung-Wook
Author-X-Name-Last: Kim
Author-Name: Randall Morck
Author-X-Name-First: Randall
Author-X-Name-Last: Morck
Title: Productivity growth and stock returns: firm- and aggregate-level analyses
Abstract:
A firm’s stock return is affected not only by its own productivity
growth rate, but also by other firms’ productivity growth rates. We
show that this spillover effect is significant and time-varying, and
underlies a fallacy of composition observed in late 20th century U.S.
data: stock returns and productivity growth are correlated positively in
firm-level data but negatively in aggregate data. This seeming fallacy of
composition reflects Schumpeterian creative destruction: a few technology
winners’ stocks rise with their rising productivity while many
technology losers’ stocks fall with their declining productivity.
Thus, most individual firms’ stock returns correlate negatively
with aggregate productivity growth. This implies that technological
innovation need not be a blessing for all firms and as a result, for
investors holding the market. Our findings also provide a firm-level
technology innovation-based explanation of prior findings that the market
return correlates negatively with aggregate earnings.
Journal: Applied Economics
Pages: 3644-3664
Issue: 38
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142659
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142659
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Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3644-3664
Template-Type: ReDIF-Article 1.0
Author-Name: Francesca Di Iorio
Author-X-Name-First: Francesca
Author-X-Name-Last: Di Iorio
Author-Name: Stefano Fachin
Author-X-Name-First: Stefano
Author-X-Name-Last: Fachin
Author-Name: Riccardo Lucchetti
Author-X-Name-First: Riccardo
Author-X-Name-Last: Lucchetti
Title: Can you do the wrong thing and still be right? Hypothesis testing in I(2) and near-I(2) cointegrated VARs
Abstract:
In this paper, we investigate the small-sample performance of LR tests on
long-run coefficients in the I(2) model; we focus on a
comparison between I(2) and near-I(2)
data, i.e. I(1) data with a second root very close to
unity, and report the results of some Monte Carlo experiments. With
near-I(2) data, the finite-sample properties of the tests
are (i) similar to those found with genuine I(2) data,
(ii) systematically superior to those of the analogous tests constructed
in the I(1) model, even if the latter is, in principle,
correctly specified and the former is not. Therefore, there seems to be
strong support to the idea that, in practice, modelling
near-I(2) data using the I(2) model may
be a good idea, despite the inherent misspecification.
Journal: Applied Economics
Pages: 3665-3678
Issue: 38
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142660
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142660
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Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3665-3678
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Yong Wang
Author-X-Name-First: Frank Yong
Author-X-Name-Last: Wang
Author-Name: Xu Wei
Author-X-Name-First: Xu
Author-X-Name-Last: Wei
Author-Name: Li Li
Author-X-Name-First: Li
Author-X-Name-Last: Li
Title: Investors’ heterogeneity and tranching
Abstract:
The article presents a theoretic model of tranching in asset
securitization. When potential buyers are heterogeneous in the constraint
on their portfolios, we find that senior tranche, which is less risky and
created by tranching, will introduce more investors and thus reduce risk
exposure to investors. Thus, tranching helps improve the sale’s
revenue. We also find that the portfolio constraints of investors are
always binding at optimum, which is called marginal rating.
Journal: Applied Economics
Pages: 3679-3684
Issue: 38
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142661
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142661
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Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3679-3684
Template-Type: ReDIF-Article 1.0
Author-Name: Khondker Aktaruzzaman
Author-X-Name-First: Khondker
Author-X-Name-Last: Aktaruzzaman
Author-Name: Omar Farooq
Author-X-Name-First: Omar
Author-X-Name-Last: Farooq
Title: Impact of microcredit on borrowers’ expenditures: a fuzzy regression discontinuity design approach
Abstract:
This article uses the data from 69 villages in Bangladesh to estimate the
effect of participation in microcredit programmes on household
expenditures. A regression discontinuity design (RDD) is used to identify
the credit effect. Our results show heterogeneous treatment effect on
different types of expenditures. We show that access to credit reduces per
capita expenditure on durable goods such as kitchen equipment, furniture,
repair and maintenance of house and increases the expenditure on per
school-going child. We also show insignificant impact of access to credit
on non-durable goods and health care, recreation and gifts. Interestingly,
our results indicate a positive impact of microcredit on village-level
expenditures.
Journal: Applied Economics
Pages: 3685-3694
Issue: 38
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142662
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142662
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Handle: RePEc:taf:applec:v:48:y:2016:i:38:p:3685-3694
Template-Type: ReDIF-Article 1.0
Author-Name: Maria João Jorge
Author-X-Name-First: Maria João
Author-X-Name-Last: Jorge
Author-Name: Mário Gomes Augusto
Author-X-Name-First: Mário Gomes
Author-X-Name-Last: Augusto
Title: Is hedging successful at reducing financial risk exposure?
Abstract:
This article analyses whether firms use risk management instruments for
hedging or speculative purposes. First, by analysing the relationship
between the firm’s stock returns and financial risks in 567
Euronext firms, we measure the firm’s exposure to risk. Next, we
investigate the effect of hedging in such exposures, addressing
simultaneously the endogeneity of hedging decision through a treatment
effect methodology. We have found that firms in our sample display higher
percentages of exposure, when weighed against preceding studies, and
confirmed that hedging reduces the level of the underlying financial
exposure, concluding that firms use risk management instruments with
hedging purposes.
Journal: Applied Economics
Pages: 3695-3713
Issue: 39
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142663
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142663
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Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3695-3713
Template-Type: ReDIF-Article 1.0
Author-Name: Desu Liu
Author-X-Name-First: Desu
Author-X-Name-Last: Liu
Title: Bivariate risk attitudes, informal care and saving
Abstract:
The article examines choices of saving and caregiving for informal
caregivers who will face uncertainty in health status of elderly parents.
The caregivers have a general form of utility with two attributes: wealth
and parental health. Informal care will substitute for future need of
formal care when parents are in good health. The article first studies the
optimal levels of saving and of caregiving and the link between them.
Comparative statics results depending on partial risk aversion or
correlation attitude are then presented. These results concern the effects
of changes in the opportunity cost of caregiving, the share of expected
bequest, the health status and the interest rate. The analysis is also
extended to investigate the role of cross-prudence/imprudence in wealth
when a background health risk is introduced.
Journal: Applied Economics
Pages: 3714-3722
Issue: 39
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142664
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142664
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Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3714-3722
Template-Type: ReDIF-Article 1.0
Author-Name: Ewelina Sokołowska
Author-X-Name-First: Ewelina
Author-X-Name-Last: Sokołowska
Title: Forecasts of the managed futures market -- an empirical analysis
Abstract:
Alternative investments, including managed futures, are primarily intended
for institutional investors and for very wealthy individual investors. It
therefore seems logical to assume, that the increase of wealth on a global
scale can be a factor impacting the value of transactions in individual
segments of the alternative-investment market. The purpose of this article
is to indicate the factors affecting growth of managed futures
transactions. Another research goal is to answer the question: Does the
increase of wealth on a global scale affect the value of the managed
futures transactions? The article will also present short-term forecasts
of the transactions on the managed futures market for the years
2015--2017. The forecasts which will be constructed are meant to present
possible scenarios of the market’s further development. Evolution
of the alternative investment segment leads to development of those
categories, which fulfil the expectations of market participants and meet
the requirement and expiration of the remaining investments which do not
attract investors and are no longer accepted by them.
Journal: Applied Economics
Pages: 3723-3733
Issue: 39
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1142665
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1142665
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Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3723-3733
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed M. Elgammal
Author-X-Name-First: Mohammed M.
Author-X-Name-Last: Elgammal
Author-Name: Tugba Bas
Author-X-Name-First: Tugba
Author-X-Name-Last: Bas
Author-Name: Orla Gough
Author-X-Name-First: Orla
Author-X-Name-Last: Gough
Author-Name: Neeta Shah
Author-X-Name-First: Neeta
Author-X-Name-Last: Shah
Author-Name: Stefan van Dellen
Author-X-Name-First: Stefan
Author-X-Name-Last: van Dellen
Title: Do financial distress and liquidity crises affect value and size premiums?
Abstract:
This study investigates the impact of liquidity crises on the relationship
between stock (value and size) premiums and default risk in the US market.
It first examines whether financial distress can explain value and size
premiums, and then, subsequently, aims to determine whether liquidity
crises increase the risk of value and size premium investment strategies.
The study employs a time-varying approach and a sample of US stock returns
for the period between January 1982 and March 2011, a period which
includes the current liquidity crisis, so as to examine the relationship
between default risk, liquidity crises and value and size premiums. The
findings indicate that the default premium has explanatory power for value
and size premiums, which affect firms with different characteristics. We
also find that liquidity crises may actually increase the risks related to
size and value premium strategies.
Journal: Applied Economics
Pages: 3734-3751
Issue: 39
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145345
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145345
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Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3734-3751
Template-Type: ReDIF-Article 1.0
Author-Name: Niklas Jakobsson
Author-X-Name-First: Niklas
Author-X-Name-Last: Jakobsson
Author-Name: Mikael Svensson
Author-X-Name-First: Mikael
Author-X-Name-Last: Svensson
Title: The effect of copayments on primary care utilization: results from a quasi-experiment
Abstract:
This article analyses how health-care utilization is affected by
copayments in a tax-financed health-care system. The article utilizes a
natural experiment in which a health-care region in Sweden changed the
price of healthcare in such a way that primary care general physician
prices increased by 33%. We use daily visit data in the treatment region
and a neighbouring control region where no price change took place and
analyse the effect using differences-in-differences as well as
differences-in-differences-in-differences models. The results from the
preferred models indicate no effect on health-care utilization due to the
price change, a result that also holds across different socio-economic
subregions in the treatment region.
Journal: Applied Economics
Pages: 3752-3762
Issue: 39
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145346
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145346
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Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3752-3762
Template-Type: ReDIF-Article 1.0
Author-Name: Vipin Arora
Author-X-Name-First: Vipin
Author-X-Name-Last: Arora
Author-Name: Shuping Shi
Author-X-Name-First: Shuping
Author-X-Name-Last: Shi
Title: Energy consumption and economic growth in the United States
Abstract:
We study the relationship between energy consumption and real GDP in the
USA using a multivariate time-varying model [1973Q1--2014Q1]. We show that
the combination of disaggregation into specific fuels and time variation
gives more nuanced results than the alternatives for the USA.
Specifically, we find that the Granger causal relationship between total
energy and real US GDP is bi-directional through much of the 1990s, but
unidirectional running from real US GDP to energy consumption in the
2000s. As for each fuel, similar patterns of change were observed in the
causal relationship between coal consumption and real US GDP. Oil
consumption largely shows a bi-directional relationship between
consumption and US GDP, especially after 2009. And natural gas consumption
shows a brief period in the early-to-mid 2000s where US GDP predicts
energy consumption, but primarily shows that natural gas consumption and
economic growth are independent.
Journal: Applied Economics
Pages: 3763-3773
Issue: 39
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145347
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145347
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Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3763-3773
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Christian M. Dippon
Author-X-Name-First: Christian M.
Author-X-Name-Last: Dippon
Author-Name: Hiroaki Suenaga
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Suenaga
Title: Do economic, institutional or political variables explain regulated wholesale unbundled local loop rate setting?
Abstract:
This study examines OECD fully unbundled and line-sharing monthly
wholesale prices for 2002--2008. Although both series are well explained
by the models, the principal contribution of the research is that
economic, institutional and political factors explain mandated wholesale
rate settings. The study finds evidence of both regulatory capture (to
benefit incumbents) and retail margin setting to encourage entry (to
benefit entrants).
Journal: Applied Economics
Pages: 3774-3788
Issue: 39
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145348
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145348
File-Format: text/html
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Handle: RePEc:taf:applec:v:48:y:2016:i:39:p:3774-3788
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Jing Cai
Author-X-Name-First: Xiao Jing
Author-X-Name-Last: Cai
Author-Name: Shuairu Tian
Author-X-Name-First: Shuairu
Author-X-Name-Last: Tian
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: Dynamic correlation and equicorrelation analysis of global financial turmoil: evidence from emerging East Asian stock markets
Abstract:
This study investigates the dynamic conditional correlations (DCCs)
between eight emerging East Asian stock markets and the US stock market
and analyses the dynamic equicorrelation among these nine stock markets.
We find a significant increase in the conditional correlations and
equicorrelation in the first phase of the global financial crisis. We
refer to this finding as contagion from the US stock market to the
emerging East Asian markets. We also find an additional significant
process of increasing correlations and equicorrelation (herding) in the
second phase of the global financial crisis. Further, we employ two new
models, namely DCCX-MGARCH (a DCC Multivariate GARCH model with exogenous
variables) and DECOX-MGARCH (a dynamic equicorrelation multivariate GARCH
model with exogenous variables), to identify the channels of contagion. We
find that an increase in the VIX Index increases the conditional
correlations and equicorrelation, while increases in TED spreads decrease
the conditional correlations of six emerging East Asian countries with the
USA. We compare the accuracy of the conditional correlation estimates of
the DCC and DCCX models (or DECO and DECOX models) by constructing a loss
function. We find that the DCCX (DECOX) model provides more accurate
conditional correlation estimates than the DCC (DECO) model by extracting
additional information from exogenous variables.
Journal: Applied Economics
Pages: 3789-3803
Issue: 40
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145349
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145349
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Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3789-3803
Template-Type: ReDIF-Article 1.0
Author-Name: H. Qi
Author-X-Name-First: H.
Author-X-Name-Last: Qi
Author-Name: Y. A. Xie
Author-X-Name-First: Y. A.
Author-X-Name-Last: Xie
Title: Cost of capital: spot rate or forward rate?
Abstract:
In this study, we intend to reveal some problems with the classic
valuation method -- the weighted average cost of capital (WACC) method. We
first address a fundamental question about WACC, that is, should WACC be
interpreted as a spot rate, a forward rate or any kind of average of
either of them? We show that the nature of WACC is the expected forward
rate. We next demonstrate that without understanding this nature, we may
misinterpret the famous MM formula and MM Proposition II, as well as
develop incorrect valuation framework. Our findings provide insightful
implications to academia and practitioners for the proper interpretation
and implementation of the WACC method.
Journal: Applied Economics
Pages: 3804-3811
Issue: 40
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145350
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145350
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Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3804-3811
Template-Type: ReDIF-Article 1.0
Author-Name: Wankeun Oh
Author-X-Name-First: Wankeun
Author-X-Name-Last: Oh
Author-Name: Eun G. Park
Author-X-Name-First: Eun G.
Author-X-Name-Last: Park
Title: Adoption of digital repositories for CO2 emissions reduction: the case of Korea
Abstract:
This study aims to estimate the potential economic benefits, energy and
CO2 emissions reductions when using trusted third-party digital
repository (TTPR) services in one individual bank, and within the banking
industry in Korea. First, the cost, benefit and net benefit of using TTPR
services in the banking industry are estimated. Second, the net induced
output effect is estimated. Third, based on an environmentally extended
input--output analysis, CO2 emissions reduction was estimated
as 1924.32 tons in 2009 and the energy consumption reduction as
640.70 TOE. Fourth, the total economic benefit, which is the sum of
the net induced output effect and economic value of CO2
emissions reductions, is approximately $11.04 million. The findings
demonstrate that energy consumption and CO2 emissions
reductions are meaningful enough to result in significant economic
benefits. Therefore, the Korean government should promote the use of TTPR
services in the entire industry.
Journal: Applied Economics
Pages: 3812-3825
Issue: 40
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145351
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145351
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Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3812-3825
Template-Type: ReDIF-Article 1.0
Author-Name: Víctor M. Adame
Author-X-Name-First: Víctor M.
Author-X-Name-Last: Adame
Author-Name: Fernando Fernández-Rodríguez
Author-X-Name-First: Fernando
Author-X-Name-Last: Fernández-Rodríguez
Author-Name: Simon Sosvilla-Rivero
Author-X-Name-First: Simon
Author-X-Name-Last: Sosvilla-Rivero
Title: Portfolios in the Ibex 35 before and after the Global Financial Crisis
Abstract:
In this article, we present an analysis of the effectiveness of various
portfolio optimization strategies applied to the stocks included in the
Spanish Ibex 35 index, for a period of 14 years, from 2001 until
2014. The period under study includes episodes of volatility and
instability in financial markets, incorporating the Global Financial
Crisis and the European Sovereign Debt Crisis. This implies a challenge in
portfolio optimization strategies since the methodologies are restricted
to the assignment of positive weights. We have taken for asset allocation
the daily returns with an estimation window equal to 1 year and we hold
portfolio assets for another year. This article attempts to influence the
discussion over whether the naive diversification proves to be an
effective strategy as opposed to portfolio optimization models. For that,
we evaluate the out-of-sample performance of 15 strategies for asset
allocation in the Ibex 35, before and after of the Global Financial
Crisis. Our results suggest that a large number of strategies outperform
to the 1/N rule and to the Ibex 35 index in terms of return, Sharpe ratio
and lower VaR and CVaR. The mean-variance portfolio of Markowitz with
short-sale constraints is the only strategy that renders a Sharpe ratio
statistically different from Ibex 35 index in the 2001--2007 and
2008--2014 time periods.
Journal: Applied Economics
Pages: 3826-3847
Issue: 40
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145352
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145352
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Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3826-3847
Template-Type: ReDIF-Article 1.0
Author-Name: Sofia Izquierdo Sanchez
Author-X-Name-First: Sofia
Author-X-Name-Last: Izquierdo Sanchez
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Author-Name: Robert Simmons
Author-X-Name-First: Robert
Author-X-Name-Last: Simmons
Title: Substitution between leisure activities: a quasi-natural experiment using sports viewing and cinema attendance
Abstract:
The allocation of time between leisure activities and work has been
extensively analysed in academic literature. However, leisure time is
limited and there may not be sufficient time to enjoy all the leisure
activities desired. Hence, this article considers the allocation of time
between substitute leisure activities. International football tournaments
provide an opportunity to consider consumers’ preferences for
watching football and films in a quasi-natural experimental setting. A
trade-off between these leisure activities is identified using a
difference-in-difference methodology. Using an original, four-country data
set, a large and robust negative effect of mega sports events on cinema
admissions is identified.
Journal: Applied Economics
Pages: 3848-3860
Issue: 40
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1145353
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1145353
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Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3848-3860
Template-Type: ReDIF-Article 1.0
Author-Name: Léonard Moulin
Author-X-Name-First: Léonard
Author-X-Name-Last: Moulin
Author-Name: David Flacher
Author-X-Name-First: David
Author-X-Name-Last: Flacher
Author-Name: Hugo Harari-Kermadec
Author-X-Name-First: Hugo
Author-X-Name-Last: Harari-Kermadec
Title: Tuition fees and social segregation: lessons from a natural experiment at the University of Paris 9-Dauphine
Abstract:
Using a natural experiment, a sharp rise in tuition fees in some of the
programmes at the University of Paris 9-Dauphine, we study the impact of
tuition fees on students’ pathways, and outcomes. We apply an
optimal matching method to the national database of students’
registrations (SISE) to define a typology of pathways. We then use a
nonordered multinomial logit model to evaluate the impact of the rise in
tuition fees on the types of pathways selected by the university. We show
that there is a significant impact on these pathways. The increase in
tuition fees reduces geographic and social mobility, thereby accentuating
the phenomena of social segregation. Furthermore, contrary to what some of
the studies assert, the rise does not appear to encourage greater effort:
we find no impact on the graduation success rate.
Journal: Applied Economics
Pages: 3861-3876
Issue: 40
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1148253
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148253
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Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3861-3876
Template-Type: ReDIF-Article 1.0
Author-Name: F. Traoré
Author-X-Name-First: F.
Author-X-Name-Last: Traoré
Author-Name: F. Badolo
Author-X-Name-First: F.
Author-X-Name-Last: Badolo
Title: On the co-movement between coffee and cocoa prices in international markets
Abstract:
In this article, we study the movement between cocoa and coffee prices,
two close substitute commodities. Using the ARDL approach developed by
Pesaran et al. (2001), we found that the two prices are cointegrated. The
long-run elasticity of coffee price with respect to the cocoa one is
estimated at 0.88. Also, using the lag-augmented VAR approach of Toda and
Yamamoto (1995), which is valid whatever the order of integration of the
data, the cocoa price is found to granger cause the coffee price and not
vice versa. This finding suggests that models aiming at forecasting coffee
prices should incorporate cocoa prices as well.
Journal: Applied Economics
Pages: 3877-3886
Issue: 40
Volume: 48
Year: 2016
Month: 8
X-DOI: 10.1080/00036846.2016.1148254
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148254
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Handle: RePEc:taf:applec:v:48:y:2016:i:40:p:3877-3886
Template-Type: ReDIF-Article 1.0
Author-Name: Léa Bouhakkou
Author-X-Name-First: Léa
Author-X-Name-Last: Bouhakkou
Author-Name: Alain Coën
Author-X-Name-First: Alain
Author-X-Name-Last: Coën
Author-Name: Didier Folus
Author-X-Name-First: Didier
Author-X-Name-Last: Folus
Title: A portfolio approach to the optimal mix of funded and unfunded pensions
Abstract:
In this paper, we address the optimal funding of pensions by means of portfolio choice approach. Considering the unfunded (Paygo) pension system as a ‘quasi-asset’ with hedging and diversification properties, we derive the optimal portfolio mix of funded and Paygo systems within a mean variance and Bell linear exponential models. Our analysis involves both analytical computations and empirical estimations of optimal values using real long-term data for equity, bonds and the Paygo asset for several OECD countries and several time periods covering the time span 1897–2016. We find that in most cases a mix of both systems is desirable with a larger magnitude of Paygo system in the case of the Bell framework as we capture attitudes towards asymmetry and tail risks that are typical to equity markets.
Journal: Applied Economics
Pages: 1733-1744
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678728
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678728
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Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1733-1744
Template-Type: ReDIF-Article 1.0
Author-Name: Iordanis Angelos Kalaitzoglou
Author-X-Name-First: Iordanis Angelos
Author-X-Name-Last: Kalaitzoglou
Author-Name: Boulis Maher Ibrahim
Author-X-Name-First: Boulis Maher
Author-X-Name-Last: Ibrahim
Title: OTC trades and liquidity in the European carbon market more than meets the eye
Abstract:
This study investigates whether the previously reported price impact of OTC trades in the EU ETS can be attributed to their distinctively larger size (liquidity related) or to their discretionary feature (information related). The findings suggest that OTC trades induce volatility shocks that are higher in magnitude and faster resolved than those of solely high trading-intensity trades, which appears to be driven mainly by their presence, rather than by their size. An analysis of intraday price premia reveals that they are strategically placed by interacting with the organized market whenever their price and volatility impact is lower.
Journal: Applied Economics
Pages: 1745-1762
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678729
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678729
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Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1745-1762
Template-Type: ReDIF-Article 1.0
Author-Name: TsingZai C. Wu
Author-X-Name-First: TsingZai C.
Author-X-Name-Last: Wu
Author-Name: Chaur-Shiuh Young
Author-X-Name-First: Chaur-Shiuh
Author-X-Name-Last: Young
Author-Name: Chun-Chan Yu
Author-X-Name-First: Chun-Chan
Author-X-Name-Last: Yu
Author-Name: Hsiao-Tang Hsu
Author-X-Name-First: Hsiao-Tang
Author-X-Name-Last: Hsu
Title: Are governmental expenditures also sticky? Evidence from the operating expenditures of public schools
Abstract:
Existing research on cost stickiness focuses primarily on for-profit companies. This study investigates cost behaviour in the public sector, a new setting that deserves more research attention. Using unique data from public schools in Taiwan, we find that operating expenditures of public schools are sticky. Moreover, the stickiness is more prominent for schools whose principals facing higher enrolment pressure. These results support the public choice theory, suggesting that bureaucratic power may serve as a key driver leading to a sticky cost behaviour for governmental organizations. The government auditors and congressional representatives monitoring governmental budgets should thus notice that bureaucrats might keep the level of expenditures just for their self-interests when demand declines, a manifestation of distortion in allocation of social resources.
Journal: Applied Economics
Pages: 1763-1776
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678731
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678731
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Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1763-1776
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Vijaya Bhaskar Marisetty
Author-X-Name-First: Vijaya Bhaskar
Author-X-Name-Last: Marisetty
Title: Financial inclusion and poverty: a tale of forty-five thousand households
Abstract:
Using a new nationally representative survey data covering approximately 45,000 Indian households, we examine the effects of financial inclusion on poverty. We construct a multidimensional indicator of financial inclusion and examine the effects of financial inclusion on multiple measures of poverty including the household Poverty Probability Index (PPI), household deprivation scores, and poverty line. We find that financial inclusion has a strong poverty-reducing effect. This finding is consistent across the different measures of poverty used, and alternative ways of measures financial inclusion. These results underpin the importance of financial inclusion and the need for its promotion across countries.
Journal: Applied Economics
Pages: 1777-1788
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678732
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678732
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Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1777-1788
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Mugabe
Author-X-Name-First: Douglas
Author-X-Name-Last: Mugabe
Author-Name: Levan Elbakidze
Author-X-Name-First: Levan
Author-X-Name-Last: Elbakidze
Author-Name: Gulnara Zaynutdinova
Author-X-Name-First: Gulnara
Author-X-Name-Last: Zaynutdinova
Title: Elasticity of substitution and technical efficiency: evidence from the US electricity generation
Abstract:
The implications of national or regional energy policies for technical efficiency and environmental outcomes in electricity generation depend on fossil fuel input substitution. This study uses state level data to examine fossil fuel (coal and natural gas) substitution in electricity generation under increased availability of natural gas in the United States. We observe that changes in elasticities of substitution from pre-2009 to post-2009 differ across states suggesting that the effects of increased availability of inexpensive natural gas on electricity generation have been spatially heterogeneous. We rely on the observed heterogeneity to assess the effects of fossil fuel input substitution on technical efficiency and CO2 emissions. The results reveal that state level elasticity of substitution between natural gas and coal has a positive effect on technical efficiency and a negative effect on CO2 emissions. Therefore, future policy design and analyses should reflect the implications for regional elasticities of fossil fuel substitution and associated environmental outcomes.
Journal: Applied Economics
Pages: 1789-1805
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1678733
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1678733
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Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1789-1805
Template-Type: ReDIF-Article 1.0
Author-Name: Marija Petrović-Ranđelović
Author-X-Name-First: Marija
Author-X-Name-Last: Petrović-Ranđelović
Author-Name: Petar Mitić
Author-X-Name-First: Petar
Author-X-Name-Last: Mitić
Author-Name: Aleksandar Zdravković
Author-X-Name-First: Aleksandar
Author-X-Name-Last: Zdravković
Author-Name: Dušan Cvetanović
Author-X-Name-First: Dušan
Author-X-Name-Last: Cvetanović
Author-Name: Slobodan Cvetanović
Author-X-Name-First: Slobodan
Author-X-Name-Last: Cvetanović
Title: Economic growth and carbon emissions: evidence from CIVETS countries
Abstract:
This paper examines whether a long-run relationship exists between CO2 emissions and selected variables: real gross domestic product per capita, inward stock of foreign direct investments, gross fixed capital formation, industry, value added and energy use per capita for Colombia, Indonesia, Viet Nam, Egypt, Turkey and South Africa countries in the period of 1989–2016. We used panel unit root testing, followed by panel cointegration tests and panel causality. The results clearly prove the existence of a bidirectional long-run causal relationship between all the variables except between CO2 emissions and GDP and CO2 emissions and GFCF. Major finding of the short-run causality analysis is that CO2 emission in the short run does not result in changes of other variables. On the other hand, all variables except foreign direct investments (FDI) cause the changes in the CO2 emissions, and there is a positive bidirectional causal relationship between GDP and FDI, between GFCF and FDI, and between GFCF and IVA. Finally, positive unidirectional causal relationship also exists, running from GDP to IVA, GDP to ENUSE, IVA to FDI and ENUSE to FDI.
Journal: Applied Economics
Pages: 1806-1815
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679343
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679343
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Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1806-1815
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Samuelson Appau
Author-X-Name-First: Samuelson
Author-X-Name-Last: Appau
Title: Microfinance in Latin America and the Caribbean: the curse and blessing of ethnic diversity
Abstract:
Latin America is one of the most ethnically diverse regions in the world, and is also characterized by high levels of poverty. As a poverty alleviation tool, microfinance emerged in the region and has significantly evolved over the years. However, the implications of the region’s high diversity on the performance of microfinance institutions (MFIs) are however not known. We attempt to fill this gap by providing evidence on the association between MFI performance and indices of ethnic and linguistic fractionalization. Our findings suggest that fractionalization promotes MFI financial performance but is detrimental to outreach depth. These results are robust to various sensitivity tests.
Journal: Applied Economics
Pages: 1816-1830
Issue: 16
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679344
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679344
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Handle: RePEc:taf:applec:v:52:y:2020:i:16:p:1816-1830
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Bolli
Author-X-Name-First: Thomas
Author-X-Name-Last: Bolli
Author-Name: Florian Seliger
Author-X-Name-First: Florian
Author-X-Name-Last: Seliger
Author-Name: Martin Woerter
Author-X-Name-First: Martin
Author-X-Name-Last: Woerter
Title: Technological diversity, uncertainty and innovation performance
Abstract:
We analyse the impact of technological diversity on innovation performance in the discovery stage, measured by R&D intensity and patent applications, and in the commercialization stage, measured by the sales share generated by innovations, using Swiss firm-level data. While we do not find any impact of diversity on R&D intensity, we confirm a positive impact of diversity on patent applications as suggested by literature. Extending the analysis to the commercialization stage reveals that technological diversity decreases the share of sales generated by innovative products. We argue that this pattern emerges because knowledge spillovers matter relatively more in the discovery stage while coordination costs matter relatively more in the commercialization stage. Technological uncertainty further increases coordination costs (in both stages) and thus negatively moderates the effect of diversity on innovation performance.
Journal: Applied Economics
Pages: 1831-1844
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679345
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679345
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Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1831-1844
Template-Type: ReDIF-Article 1.0
Author-Name: Ashwin Madhou
Author-X-Name-First: Ashwin
Author-X-Name-Last: Madhou
Author-Name: Tayushma Sewak
Author-X-Name-First: Tayushma
Author-X-Name-Last: Sewak
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Title: Forecasting the GDP of a small open developing economy: an application of FAVAR models
Abstract:
GDP forecasting remains a challenge for a small open developing economy. Faced with insufficient and low-frequency data, central bank forecasters cannot project GDP reliably for the purpose of monetary policy decision-making. An attempt is made to forecast GDP using a factor-augmented vector autoregressive (FAVAR) model for a small open developing economy. The forecasting accuracy of the FAVAR model is examined through sequential forecasts and benchmarked against a Bayesian vector autoregressive (BVAR) model. The main finding of this study is that a FAVAR model can generate consistent GDP projections for a small open developing economy despite data inadequacy.
Journal: Applied Economics
Pages: 1845-1856
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679346
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679346
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Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1845-1856
Template-Type: ReDIF-Article 1.0
Author-Name: Rozina Shaheen
Author-X-Name-First: Rozina
Author-X-Name-Last: Shaheen
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Title: Fiscal multipliers and the level of economic activity: a structural threshold VAR model for the UK
Abstract:
This article examines the impact of fiscal policy shocks in the UK economy using a nonlinear structural threshold vector autoregression (TVAR) model which links Gross Domestic Product (GDP), government expenditure and tax receipts. The model is structural in the sense that the contemporaneous linkages between the variables are determined by economic theory and by our assumptions about the institutional structure of the tax and transfer system. This structure is also influenced by the state of the economy as measured by the deviation of GDP from the Hodrick-Prescott trend. We find that the state of the economy is important, with fiscal policy having very different multiplier effects during ‘boom’ periods relative to ‘normal’ periods. However, we find low values for the government expenditure multiplier in all regimes.
Journal: Applied Economics
Pages: 1857-1865
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679347
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679347
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Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1857-1865
Template-Type: ReDIF-Article 1.0
Author-Name: Zhuo Huang
Author-X-Name-First: Zhuo
Author-X-Name-Last: Huang
Author-Name: Chen Tong
Author-X-Name-First: Chen
Author-X-Name-Last: Tong
Author-Name: Tianyi Wang
Author-X-Name-First: Tianyi
Author-X-Name-Last: Wang
Title: Which volatility model for option valuation in China? Empirical evidence from SSE 50 ETF options
Abstract:
In early 2015, China launched its first exchange-traded option, the Shanghai Stock Exchange (SSE) 50 ETF option, to meet the increasing demand for financial derivatives. In this article, we provide an intensive empirical investigation of popular discrete-time volatility models in terms of their pricing performance when applied to SSE 50 ETF options. We find that the newly developed models with realized measures significantly outperform conventional GARCH-type models based on daily returns only. In contrast with the U.S. market, our empirical results suggest that the leverage effect is very weak in the Chinese option market.
Journal: Applied Economics
Pages: 1866-1880
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1679348
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1679348
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Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1866-1880
Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Author-Name: Vicente Cardoso
Author-X-Name-First: Vicente
Author-X-Name-Last: Cardoso
Title: Labour market participation in Brazil: a discrete game approach
Abstract:
The article aims at investigating labour market participation of couples in Brazil in 2013. The observed endogenous variables portraying participation are assumed to be the outcome of a static discrete game between the partners. Different solution concepts are considered (Nash, Stackelberg and imposed Pareto optimality). The evidence, in comparison with previous evidence for more developed and homogeneous countries, display qualitative similarities in terms of own wage, cross wage and age effects and a stronger inhibiting role of the number of small children in the case of the female partner. In particular, cross-wage effects also indicated gender-asymmetry. Additionally, one identifies a slightly better fit in the case of the Stackelberg male leader model that could be suggestive in terms of the relevance of cultural aspects on labour market participation, but the differences among the different models are not striking.
Journal: Applied Economics
Pages: 1881-1890
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1680792
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1680792
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Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1881-1890
Template-Type: ReDIF-Article 1.0
Author-Name: Kit Pasula
Author-X-Name-First: Kit
Author-X-Name-Last: Pasula
Title: Reserve flows and monetary autonomy under a fixed exchange rate: the British experience under Bretton Woods
Abstract:
This paper uses a stochastic intertemporal model to analyse reserve flows and monetary autonomy under a fixed exchange rate, and applies the model to a study of the British experience under Bretton Woods. Even if international capital mobility is imperfect, monetary autonomy may be negligible in the model. The reduced form for reserve flows is estimated, generating an estimate of the offset coefficient. The results are consistent with the hypothesis that the Bank of England had zero monetary independence. While these results conflict with the prevailing view in the literature, they are consistent with some results in other recent studies using different approaches.
Journal: Applied Economics
Pages: 1891-1904
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1680793
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1680793
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Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1891-1904
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Gradín
Author-X-Name-First: Carlos
Author-X-Name-Last: Gradín
Title: Segregation of women into low-paying occupations in the United States
Abstract:
We extend the conventional framework for measuring segregation to consider the stratification of occupations by gender, i.e. when either women or men are predominantly segregated into low-paying jobs. We propose the use of the concentration curve to analyse first-order stochastic dominance, and concentration indices to obtain complete orderings and to quantify the phenomenon. With this approach, well-rooted in the literature of economic inequality, we show that the decline in gender segregation of occupations in the US over time was accompanied by a deeper and longer reduction in their stratification. The distinctive characteristics of men and women cannot account for segregation or stratification levels. The profound changes in the composition of the workforce over time by education or marital status, however, did help to substantially explain their trends. The level of stratification was farther reduced by gender-biased changes in the earnings structure, while changes in conditional occupational distributions only contributed to these declines before 1990.
Journal: Applied Economics
Pages: 1905-1920
Issue: 17
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682113
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682113
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Handle: RePEc:taf:applec:v:52:y:2020:i:17:p:1905-1920
Template-Type: ReDIF-Article 1.0
Author-Name: Abdullahi D. Ahmed
Author-X-Name-First: Abdullahi D.
Author-X-Name-Last: Ahmed
Author-Name: Rui Huo
Author-X-Name-First: Rui
Author-X-Name-Last: Huo
Title: Linkages among energy price, exchange rates and stock markets: Evidence from emerging African economies
Abstract:
This study examines the dynamic links among oil prices, foreign exchange rates and stock markets in emerging Africa using recent 10 years data and VAR-BEKK-GARCH forecasting framework. We find evidence of significant return and volatility interactions in oil return, exchange rates and stock markets. The non-existence of long-term cointegration equilibrium implies potential diversification benefit in the long run. Autoregressive characteristics for most African foreign currencies and stock markets indicate markets’ own predictability. We see that high oil return leads to an appreciation of Botswana pula, Nigerian dollar and Zambian kwacha, depreciation of Egyptian pound and boost the stock markets of Egypt, Kenya, Nigeria and Tunisia. From the conditional variance equation, we observe significant statistical evidence of local spillover effects from oil to financial markets. Strong bi-directional shock and volatility spillovers between oil and most African exchange rates are reported. Significant shock and volatility spillovers between oil and stock markets are found in some of the African countries. We conduct portfolio optimization analyses as part of the financial risk management and risk mitigation strategies. Policy wise, leaders should promote the development of financial derivative instruments since foreign exchange rates are used as a tool to absorb oil and other external shocks.
Journal: Applied Economics
Pages: 1921-1935
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1726861
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726861
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Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1921-1935
Template-Type: ReDIF-Article 1.0
Author-Name: Ozcan Ozturk
Author-X-Name-First: Ozcan
Author-X-Name-Last: Ozturk
Title: Market integration and spatial price transmission in grain markets of Turkey
Abstract:
This paper examines whether the grain market of Turkey is cointegrated with the world grain market. Using an error correction model, we analyse the response of producer prices of wheat, barley, maize, soybean and rice to changes in world market prices. Results show that the rice market of Turkey is not cointegrated with the world rice market, while the other commodity markets are weakly cointegrated. Results also show that pass-through of changes in the world prices to the domestic prices is relatively low both in the short run and in the long run, and that adjustment to the new equilibrium following a shock is slow. Government intervention policies both at the border and as domestic price supports seem to be underlying causes of the weak cointegration. Fewer protectionist policies and lower levels of government intervention are necessary to increase the domestic grain market integration with the international grain market.
Journal: Applied Economics
Pages: 1936-1948
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1726862
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726862
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Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1936-1948
Template-Type: ReDIF-Article 1.0
Author-Name: Mojmir Hampl
Author-X-Name-First: Mojmir
Author-X-Name-Last: Hampl
Author-Name: Tomas Havranek
Author-X-Name-First: Tomas
Author-X-Name-Last: Havranek
Author-Name: Zuzana Irsova
Author-X-Name-First: Zuzana
Author-X-Name-Last: Irsova
Title: Foreign capital and domestic productivity in the Czech Republic: a meta-regression analysis
Abstract:
We provide a quantitative synthesis of the literature studying the effect of foreign direct investment (FDI) on the productivity of locally owned firms in the Czech Republic. To this end, we collect 332 previously reported estimates and use Bayesian model averaging to address model uncertainty. We find no evidence of publication bias, i.e. no sign of selective reporting of estimates that are statistically significant and show an intuitive sign. Our results suggest that more advanced techniques yield substantially larger positive effects (FDI spillovers). When placing more weight on estimates that solve important identification problems in the literature (such as using data on existing linkages between firms instead of approximations based on input-output tables), we find that, as of 2018, a 10-percentage-point increase in foreign presence is likely to lift the productivity of domestic firms by 11%. The effect is even larger for joint ventures, reaching 19%.
Journal: Applied Economics
Pages: 1949-1958
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1726864
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726864
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Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1949-1958
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Gearhart
Author-X-Name-First: Richard
Author-X-Name-Last: Gearhart
Author-Name: Nyakundi Michieka
Author-X-Name-First: Nyakundi
Author-X-Name-Last: Michieka
Title: Efficiency of American states after implementation of the patient protection and affordable care act (PPACA) from 2014 to 2017
Abstract:
We assess the impact of healthcare efficiency among U.S. states after implementation of the PPACA. A Malmquist Index decomposes productivity changes of state healthcare systems since 2014. Results indicate productivity regression of 0.14-percentage points from 2014 to 2017. In 2017 the average state is 4.9-percentage points inefficient. Using the conditional order-m estimator and nonparametrically regressing the ratio of conditional to unconditional order-m efficiency scores on secondary environmental variables, we find that behavioural, socioeconomic, and healthcare utilization factors play a role in explaining state inefficiency. The average state becomes nearly fully efficient after controlling for behaviour (efficiency improves by 3.7-percentage points), socioeconomic (4.1-percentage points), and healthcare utilization (3.2-percentage points) variables. Using a second-stage regression framework, we find that higher levels of obesity, adult smoking, and diabetes lead to lower healthcare efficiency. Likewise, we see that low and high levels of unemployment are associated with improved healthcare efficiency, which is in line with contradictory studies. We also find further support for the link between income and health outcomes, through the vehicle of improved health efficiency. Lastly, we find that ensuring that low-cost populations engaging in health treatments have improved health outcomes, as they prevent high-cost morbidities in the future.
Journal: Applied Economics
Pages: 1959-1972
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1730758
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730758
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Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1959-1972
Template-Type: ReDIF-Article 1.0
Author-Name: Richard C. K. Burdekin
Author-X-Name-First: Richard C. K.
Author-X-Name-Last: Burdekin
Author-Name: Ran Tao
Author-X-Name-First: Ran
Author-X-Name-Last: Tao
Title: Chinese liquidity effects on the Australian macroeconomy, 2002–2017
Abstract:
China’s growing importance to the Australian economy has been well recognized in policy circles but remained relatively untested in formal empirical analysis. This paper examines the reactions of Australian macroeconomic variables to Chinese money growth and inflation over the post-2002 period using VAR estimation, historical decompositions and long-run cointegration models. The consistent impact of Chinese money growth on Australian inflation and on the exchange rate seen in the VAR analysis is supplemented by evidence of cointegrating relationships between the Australian variables and both Chinese money growth and Chinese inflation.
Journal: Applied Economics
Pages: 1973-1985
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1730759
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730759
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Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1973-1985
Template-Type: ReDIF-Article 1.0
Author-Name: Shuhei Kaneko
Author-X-Name-First: Shuhei
Author-X-Name-Last: Kaneko
Author-Name: Haruko Noguchi
Author-X-Name-First: Haruko
Author-X-Name-Last: Noguchi
Title: Does traditional price policy work for achieving low smoking rate? –Empirical and theoretical evaluation based on the United States aggregate data
Abstract:
In the United States, smoking has been strictly restricted by both federal and state governments. Almost all the policies have imposed high tax on cigarettes for decreasing the number of smokers. In fact, the smoking rate has fallen in the past few decades among the population. The main objective of this study is to evaluate whether the ‘traditional’ policy still remains effective by applying the dynamic panel strategy to state-level aggregated data in the United States. Our result shows that the remaining smokers up to today are less sensitive to the price hikes than past smokers and that they are likely to ‘attenuate’ the cost of smoking by stockpiling in advance of the policy enactment when they expect the increase of future price. The empirical results suggest that an increase in the cost may no longer be so valid as it was in past decades.
Journal: Applied Economics
Pages: 1986-1997
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1728226
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1728226
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Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1986-1997
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Scicchitano
Author-X-Name-First: Sergio
Author-X-Name-Last: Scicchitano
Author-Name: Marco Biagetti
Author-X-Name-First: Marco
Author-X-Name-Last: Biagetti
Author-Name: Antonio Chirumbolo
Author-X-Name-First: Antonio
Author-X-Name-Last: Chirumbolo
Title: More insecure and less paid? The effect of perceived job insecurity on wage distribution
Abstract:
This article employs a Counterfactual Decomposition Analysis (CDA) using both a semi-parametric and a non-parametric method to examine the pay gap due to perceived job insecurity over the entire wage distribution of dependent workforce in Italy. Using the 2015 INAPP Survey on Quality of Work, our results exhibit a mirror J-shaped pattern in the pay gap between secure and insecure workers, with a significant sticky floor effect, i.e. a greater effect of job insecurity at the lowest quantiles. This pattern is mainly due to the characteristics effect, while the relative incidence of the coefficient component accounts roughly for 22% up to 36% of the total difference, being more relevant at the bottom of the wage distribution.
Journal: Applied Economics
Pages: 1998-2013
Issue: 18
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2020.1734526
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1734526
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Handle: RePEc:taf:applec:v:52:y:2020:i:18:p:1998-2013
Template-Type: ReDIF-Article 1.0
Author-Name: Kadija Charni
Author-X-Name-First: Kadija
Author-X-Name-Last: Charni
Title: Do the French pension reforms increase re-employment of older unemployed workers?
Abstract:
The sustainability of Social Security financing has pushed authorities to reform their policy to increase the labour market participation of older workers. While most of the studies have focused on the consequences of pension reform on retirement decisions, we analyse the effects of two French pension reforms, which increased the period of contribution and the minimum retirement age, on transitions out of unemployment and into employment with a difference-in-differences approach. We find that both retirement reforms have positive effects on the re-employment of older unemployed workers. The pension reforms are also accompanied by an increase of the transitions into inactivity. The results suggest that the reforms have delivered significant effects by reducing the unemployment of older workers.
Journal: Applied Economics
Pages: 2015-2043
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682114
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682114
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Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2015-2043
Template-Type: ReDIF-Article 1.0
Author-Name: Bo Zhang
Author-X-Name-First: Bo
Author-X-Name-Last: Zhang
Author-Name: Wei Dai
Author-X-Name-First: Wei
Author-X-Name-Last: Dai
Author-Name: Mark Weder
Author-X-Name-First: Mark
Author-X-Name-Last: Weder
Title: A Bayesian evaluation of an efficiency-wage model with indeterminacy
Abstract:
This paper provides a quantitative assessment of a general equilibrium economy with non-Walrasian labour markets. Indeterminacy in the economy does not require production externalities or increasing returns but it rests on replacing the labour supply curve by a no-shirking condition on the efficiency-wage labour markets. The model is estimated on U.S. data via full information Bayesian methods. The shirking model is capable of matching several stylized facts of the aggregate economy and the labour market. Data favour a version of the artificial economy that is characterized by determinacy.
Journal: Applied Economics
Pages: 2044-2055
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682115
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682115
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Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2044-2055
Template-Type: ReDIF-Article 1.0
Author-Name: Haoqi Qian
Author-X-Name-First: Haoqi
Author-X-Name-Last: Qian
Author-Name: Libo Wu
Author-X-Name-First: Libo
Author-X-Name-Last: Wu
Title: Avoiding Mis-estimation of the CES Function: Unit Matters
Abstract:
We demonstrate that unit errors of measurement will lead to significant biases in estimating the constant elasticity of substitution (CES) function. Monte-Carlo simulations show that estimation results tend to reach Cobb–Douglas (CD) functions or extreme values if units of input variables are incorrectly used. To avoid this problem, we suggest adding an overall efficiency parameter and a unit correction parameter which is similar to biased technological change parameter when estimating CES functions. Any unit error of measurement can be captured by these two parameters while allowing researchers to get unbiased estimation results of other parameters.
Journal: Applied Economics
Pages: 2056-2062
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682116
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682116
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Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2056-2062
Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Jianming Dong
Author-X-Name-First: Jianming
Author-X-Name-Last: Dong
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: Life insurer performance under the bailout of distressed asset purchases
Abstract:
The paper develops a structure-break contingent claim model to examine how government bailout affects a life insurer’s performance (policyholder protection and insurer survival). The distressed assets purchased by the government enhance the optimal insurer interest margin, and policyholder protection. Bailout as such helps the life insurer, implying a higher likelihood of survival in particular when a financial crisis deteriorates seriously, thereby contributing to the stability of the insurance system. In addition, we suggest that low participation of the profit-sharing policy increases insurer survival. This strategic participation effect becomes more significant when the economic state of structural break volatility is increased, and thus, enhancing insurer survival and solving financial problems.
Journal: Applied Economics
Pages: 2063-2078
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682117
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682117
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Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2063-2078
Template-Type: ReDIF-Article 1.0
Author-Name: Damiano Fiorillo
Author-X-Name-First: Damiano
Author-X-Name-Last: Fiorillo
Author-Name: Giuseppe Lubrano Lavadera
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Lubrano Lavadera
Author-Name: Nunzia Nappo
Author-X-Name-First: Nunzia
Author-X-Name-Last: Nappo
Title: Structural social capital and mental health: a panel study
Abstract:
The link between social relations and psychological wellbeing is well established in sociological and mental health studies. Since the beginning of the 2000s, this link has been garnering new attention and interest in economic and public health studies. Almost twenty years of empirical studies testing this relationship have established contrasting results for two main reasons. First, the majority of the studies are based on cross-sectional data, leaving out endogeneity and heterogeneity problems; second, mental health measurements are often discordant from each other. This study investigates the relationship between structural social capital and individual self-rated mental health using five waves of the British Household Panel Survey from 1991 to 1995 (unbalanced panel N = 44,684). We take into account the heterogeneity and endogeneity issues and implement fixed effects and lag-dependent variable estimations. Moreover, we used different methodologies to measure mental health as a robustness check. Our findings show the existence of a negative relationship between being both a member of and active in an organization and worse mental health. In addition, being active within an organization in the previous year has a negative effect on worse mental health in the following year.
Journal: Applied Economics
Pages: 2079-2095
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1682508
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1682508
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Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2079-2095
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Fernández-Rodríguez
Author-X-Name-First: Fernando
Author-X-Name-Last: Fernández-Rodríguez
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: Volatility transmission between stock and foreign exchange markets: a connectedness analysis
Abstract:
This paper empirically investigates volatility transmission among stock and foreign exchange markets in seven major world economies during the period July 1988 to May 2018. To this end, we first perform a static and dynamic analysis to measure the total volatility connectedness in the entire period (the system-wide approach). Second, we make use of a dynamic analysis to evaluate the net directional connectedness for each market. To gain further insights, we examine the time-varying behaviour of net pair-wise directional connectedness during the financial turmoil periods experienced in the sample period Our results suggest that slightly more than half of the total variance of the forecast errors is explained by shocks across markets rather than by idiosyncratic shocks. Furthermore, we find that volatility connectedness varies over time, with a surge during periods of increasing economic and financial instability.
Journal: Applied Economics
Pages: 2096-2108
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683143
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683143
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Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2096-2108
Template-Type: ReDIF-Article 1.0
Author-Name: Tom Pierse
Author-X-Name-First: Tom
Author-X-Name-Last: Pierse
Author-Name: John McHale
Author-X-Name-First: John
Author-X-Name-Last: McHale
Title: Unemployment durations and local labour market conditions
Abstract:
Unemployment durations vary across local authority districts in the UK. We explore the extent to which this variation is explained by differences in local labour demand as opposed to composition, business cycle and regional effects. We use seventeen waves of the British Household Panel Survey to identify the determinants of the duration of unemployment spells. Once we adjust for individual-level, business cycle and regional controls, we do not find evidence that living in a local authority district with relatively high unemployment is associated with longer spells of unemployment. This indicates that differences in labour demand operate at larger geographic scales, such as between large regions. Our findings have implications for the design of policies to help high unemployment districts.
Journal: Applied Economics
Pages: 2109-2122
Issue: 19
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683144
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683144
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Handle: RePEc:taf:applec:v:52:y:2020:i:19:p:2109-2122
Template-Type: ReDIF-Article 1.0
Author-Name: Ashwin Madhou
Author-X-Name-First: Ashwin
Author-X-Name-Last: Madhou
Author-Name: Tayushma Sewak
Author-X-Name-First: Tayushma
Author-X-Name-Last: Sewak
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Title: Forecasting inflation in a small open developing economy
Abstract:
The transition to a model-based forecasting environment is encountered by hurdles in a small open developing economy. An attempt is made to validate the benefits of model-based inflation forecasting for central banks in small open developing economies. Despite data limitations, two distinct VARs are designed to project near-term inflation. Batteries of tests (such as sequential forecasts, out-of-sample forecasting errors, equal-weight forecasting errors and decomposition) are performed on the two models to assess their predictive ability. The main finding is that model-based forecasts are reliable for use by central banks in small open developing economies, as substantiated by the relatively low forecasting errors.
Journal: Applied Economics
Pages: 2123-2134
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683145
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683145
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Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2123-2134
Template-Type: ReDIF-Article 1.0
Author-Name: Leiju Qiu
Author-X-Name-First: Leiju
Author-X-Name-Last: Qiu
Author-Name: Dongmei Guo
Author-X-Name-First: Dongmei
Author-X-Name-Last: Guo
Author-Name: Xuankai Zhao
Author-X-Name-First: Xuankai
Author-X-Name-Last: Zhao
Author-Name: Wenzhan Zhang
Author-X-Name-First: Wenzhan
Author-X-Name-Last: Zhang
Title: The value of school in urban China: a spatial quantile regression with housing transactions in Beijing
Abstract:
This study adopts microdata of individual housing transactions in Beijing to explore the value that households place on high-quality schools. It is among the first to match exactly the housing unit with its corresponding school in studies on Chinese housing markets. We find a significant school premium of 21.1% in Beijing’s housing market after controlling the unobservable neighbourhood effects using regressions with a spatial lag. We have further discovered different school premiums across quantiles with a spatial quantile regression. The result finding a larger school premium in the lower-priced housing units suggests that low-income households prefer high-quality schools over housing consumption. Our results indicate that public education influences households’ residential location choice and housing consumption decisions, which thus have important policy implications in public goods provision, housing development and urban planning.
Journal: Applied Economics
Pages: 2135-2146
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683146
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683146
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Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2135-2146
Template-Type: ReDIF-Article 1.0
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Caoyuan Ma
Author-X-Name-First: Caoyuan
Author-X-Name-Last: Ma
Author-Name: Hongyan Geng
Author-X-Name-First: Hongyan
Author-X-Name-Last: Geng
Title: The effects of business models on bank risk before, during and after financial crisis: evidence from China
Abstract:
Using Chinese data from 2004 to 2016, we investigate the effects of business models on bank risk before, during and after financial crisis. Three main results emerge. First, insolvency risk and ROA volatility significantly increase if banks increase their share of non-interest income, and this relationship mainly appears during and after financial crisis. Second, a higher non-deposit funding share results in lower capital risk and credit risk and higher asset quality. However, these effects disappear after financial crisis. Finally, further analyses show that the effects of non-interest income on bank risk are mainly from assets-based non-interest income, and the effects of non-deposit funding on bank risk come primarily from money-market and short-term funding.
Journal: Applied Economics
Pages: 2147-2164
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683148
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683148
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Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2147-2164
Template-Type: ReDIF-Article 1.0
Author-Name: Margareta Dackehag
Author-X-Name-First: Margareta
Author-X-Name-Last: Dackehag
Author-Name: Lina Maria Ellegård
Author-X-Name-First: Lina Maria
Author-X-Name-Last: Ellegård
Author-Name: Ulf-G. Gerdtham
Author-X-Name-First: Ulf-G.
Author-X-Name-Last: Gerdtham
Author-Name: Therese Nilsson
Author-X-Name-First: Therese
Author-X-Name-Last: Nilsson
Title: Social assistance and mental health: evidence from longitudinal administrative data on pharmaceutical consumption
Abstract:
This paper adds to the small literature on the role of welfare benefits and mental health by studying the relationship between uptake of Social Assistance Benefit (SAB) and objective mental health measures. We use rich longitudinal administrative data on income, unemployment benefits and psychopharmaceutic prescriptions (antidepressants, anxiolytics, and hypnotics) for more than 140,000 Swedes in 2006–2012. Relative to earlier studies focusing on subjective mental health, an advantage of our approach is that we use longitudinal administrative data that do not suffer from non-response, under-reporting and self-justification biases. While we document a strong positive association between SAB and psychopharmaca consumption in ordinary least squares models, fixed effects estimates indicate that most of the association is due to unobserved individual-specific predisposition. Insofar as a relationship remains in the fixed effect models, it is driven by highly educated men. This result is consistent with earlier quantitative studies using survey data and with qualitative research suggesting that SAB uptake may be particularly stigmatizing for individuals with a higher initial socioeconomic position.
Journal: Applied Economics
Pages: 2165-2177
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1683149
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683149
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Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2165-2177
Template-Type: ReDIF-Article 1.0
Author-Name: Ryan Larsen
Author-X-Name-First: Ryan
Author-X-Name-Last: Larsen
Author-Name: R. Garth Taylor
Author-X-Name-First: R. Garth
Author-X-Name-Last: Taylor
Author-Name: John R. McKean
Author-X-Name-First: John R.
Author-X-Name-Last: McKean
Author-Name: Donn M. Johnson
Author-X-Name-First: Donn M.
Author-X-Name-Last: Johnson
Title: Willingness-to-pay for snowmobile recreation: travel cost method models with and without post-season resurvey of trip count
Abstract:
Annual willingness-to-pay (WTP) for snowmobile recreation in Idaho is estimated using the travel cost method (TCM). On-site snow conditions are important and erratic, thus we collect two measures of the annual trip count, an in-season survey of the expected count, and a post-season survey of the actual count. Two variants of the TCM model are estimated. Using the post-season actual trip count data and the ‘traditional’ TCM model, WTP increases from $41 to $91 per person per trip as the fraction of the wage rate that is used to value the opportunity cost of travel time is increased from 1/4 to one. Using the preferred short-run decision TCM model, WTP increases from $53 to $194 as the snowmobiler ratings of off-trail snow conditions vary from worst to best. WTP estimates using the in-season expected trip count data and the traditional TCM model are much higher (triple) than those found using the post-season actual trip count data, and the confidence intervals are much larger.
Journal: Applied Economics
Pages: 2178-2190
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1686112
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1686112
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Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2178-2190
Template-Type: ReDIF-Article 1.0
Author-Name: Lilia Cavallari
Author-X-Name-First: Lilia
Author-X-Name-Last: Cavallari
Author-Name: Stefano D’Addona
Author-X-Name-First: Stefano
Author-X-Name-Last: D’Addona
Title: Export margins and world shocks: an empirical investigation in fixed and floating regimes
Abstract:
We use 4-digit data to document the role of world shocks for intensive and extensive margin of exports. We estimate a VAR model, where the endogenous bloc comprises bilateral export margins and relative GDP, and the exogenous bloc comprises disaggregated measures of world price shocks. We find that world shocks have a significant impact on both the average export volume and export diversification. Impulse responses display considerable heterogeneity depending on the shock considered, the exchange rate regime and the great trade collapse. The evidence in the paper has remarkable consequences for trade and exchange rate policies.
Journal: Applied Economics
Pages: 2191-2207
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1686113
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1686113
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Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2191-2207
Template-Type: ReDIF-Article 1.0
Author-Name: András Takács
Author-X-Name-First: András
Author-X-Name-Last: Takács
Author-Name: József Ulbert
Author-X-Name-First: József
Author-X-Name-Last: Ulbert
Author-Name: Andrew Fodor
Author-X-Name-First: Andrew
Author-X-Name-Last: Fodor
Title: Have investors learned from the crisis? An analysis of post-crisis pricing errors and market corrections in US stock markets based on the reverse DCF model
Abstract:
The traditional discounted cash flow (DCF) model is generally used to estimate the present value of an enterprise or its equity based on expected future parameters such as cash flows, growth rate and discount rate. In the last decade, the reverse DCF model has gained popularity. With this approach, the valuer uses the current market capitalization as a fixed input and seeks those ‘critical’ values of individual valuation parameters, which – assuming all other parameters remain unchanged – result in a value equal to current market value. This provides a point of comparison for the company’s realized performance and may provide insights regarding over or undervaluation. In this study, we develop a novel DCF model and conduct empirical analysis using data of 1001 US manufacturing, service, retail and financial companies. We examine pricing errors and market corrections in the post-crisis era based on the critical cash flow ratio defined in our reverse model. We find evidence of a general undervaluation in US stock markets with different pricing error patterns across industries. Our results confirm market correction mechanisms have worked properly in the post-crisis era with an average reaction time of 2 years, suggesting investors have learned from the crisis.
Journal: Applied Economics
Pages: 2208-2218
Issue: 20
Volume: 52
Year: 2020
Month: 4
X-DOI: 10.1080/00036846.2019.1686114
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1686114
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Handle: RePEc:taf:applec:v:52:y:2020:i:20:p:2208-2218
Template-Type: ReDIF-Article 1.0
Author-Name: Fernanda Mazzotta
Author-X-Name-First: Fernanda
Author-X-Name-Last: Mazzotta
Author-Name: Francesca Bettio
Author-X-Name-First: Francesca
Author-X-Name-Last: Bettio
Author-Name: Valentina Zigante
Author-X-Name-First: Valentina
Author-X-Name-Last: Zigante
Title: Eldercare hours, work hours and perceived filial obligations
Abstract:
In this paper, we take a fresh look at the magnitude of the trade-off between caring informally for a parent and paid work. We adopt a simultaneous approach with a primary focus on how hours of care are influenced by hours of work rather than the other way round. We also investigate the role that filial obligations play in choices of caring versus working. Using the SHARE data (2004 and 2006) we find that the elasticity of informal care hours in response to working hours is between −0.17 in the caregivers sample and −0.19 in the women-only caregivers sample; small but not negligible. Moreover, we find that a 10%increase in the index measuring the strength of filial obligations increases weekly hours of care by about two and a half hours.
Journal: Applied Economics
Pages: 2219-2238
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1687839
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1687839
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Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2219-2238
Template-Type: ReDIF-Article 1.0
Author-Name: Terhi Maczulskij
Author-X-Name-First: Terhi
Author-X-Name-Last: Maczulskij
Author-Name: Jukka Nyblom
Author-X-Name-First: Jukka
Author-X-Name-Last: Nyblom
Title: Measuring the gender wage gap—a methodological note
Abstract:
We propose to estimate the Blinder-Oaxaca decomposition by a single-equation model augmented with interactions between the group membership and other predictors. The relative importance of predictors on the discriminatory wage gap is examined by the interaction coefficients, which may lead to very different conclusions than the usual percentage calculations using the detailed decomposition method. Comparisons are made between the traditional interpretations and those suggested here using wage data from Finland. The decomposition analysis suggests that the discriminatory male-female wage gap is largely related to work experience, while our preferred model points to the importance of family gap and working industry.
Journal: Applied Economics
Pages: 2239-2249
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1687840
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1687840
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Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2239-2249
Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Mohebi
Author-X-Name-First: Mehdi
Author-X-Name-Last: Mohebi
Author-Name: Fakhri Mirshojaee
Author-X-Name-First: Fakhri
Author-X-Name-Last: Mirshojaee
Title: Microdata analysis of the consequences of free trade port policy: the case of Iran free zones
Abstract:
Creating free trade zones as a policy to motivate new investment and improve the local economic indicators might be of some benefits. Following of this policy in Iranian major port, however, resulted vice versa by aggravating the current account balance that is higher imports and the same horizon diminished export sums. We derive the micro data of trade for the Iranian major Imam port according to code arrangements of harmonic system (HS), which permits the clustering of different goods categories. Then we extracted the sums of survey data for the years before and after Imam port became free trade zone and applied fixed effect difference in difference (DID) method to capture the heterogeneity of unobserved variables. Our control port of analysis was Rajaee port the policy did not implemented. Results show that just as Imam free port’s Current Account Balance deteriorated by increasing import and dampening of export sums.
Journal: Applied Economics
Pages: 2250-2260
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1687841
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1687841
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Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2250-2260
Template-Type: ReDIF-Article 1.0
Author-Name: Muzaffarjon Ahunov
Author-X-Name-First: Muzaffarjon
Author-X-Name-Last: Ahunov
Author-Name: Leo Van Hove
Author-X-Name-First: Leo
Author-X-Name-Last: Van Hove
Title: National culture and financial literacy: international evidence
Abstract:
We examine to what extent (aspects of) national culture can explain cross-country variations in financial literacy. Our results, for a sample of 92 countries, show that Hofstede’s dimensions of power distance and individualism explain, respectively, over 40 and 60 per cent – which is substantially more than national cognitive scores and standard economic variables. In particular, we find that financial literacy is lower in countries where power distance is high, and that the opposite is true for individualism. Uncertainty avoidance would seem be negatively related with financial literacy, but the evidence is not so strong. For masculinity, indulgence, and long-term orientation we find no significant impact. Overall, our results highlight the need for additional (interdisciplinary) theories that can improve our understanding of the determinants of financial literacy and better guide policies in this area.
Journal: Applied Economics
Pages: 2261-2279
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688241
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688241
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Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2261-2279
Template-Type: ReDIF-Article 1.0
Author-Name: Deiyalí A. Carpio
Author-X-Name-First: Deiyalí A.
Author-X-Name-Last: Carpio
Author-Name: Alberta Fernandez
Author-X-Name-First: Alberta
Author-X-Name-Last: Fernandez
Author-Name: Beatriz Urbano
Author-X-Name-First: Beatriz
Author-X-Name-Last: Urbano
Title: How to gain image and positioning on social media: Spanish agribusiness firm image and position on social media
Abstract:
The aim of this article is to obtain insights into how agribusiness firms can gain image recognition and positioning on SM and, in doing so, determine the images that can increase or diminish their positions on SM and predict the frequency of an image’s visibility on SM. This article uses data collected from a large number of Spanish agribusiness firms of the agrarian, agrifood and wine subsectors, located in rural peripheral areas or urban cores, to identify their images and positioning on social media. We use the Tagxedo digital tool to show the distinctive images of agribusiness firms on SM. Using the Howsociable digital tool and observing the SM key performance indicators (KPI), we measure the traffic and visibility of agribusiness firms on social media, and we find that a lot of agribusiness firms leave the potential of SM unused. The agribusiness firms upstream in the value chain and located in rural peripheral areas could take more advantages of SM visibility. We then create a model of image and positioning on SM using a binary logistic regression. We predict that more than two messages of sales per week on SM can diminish the visibility of agribusiness firm on SM.
Journal: Applied Economics
Pages: 2280-2291
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688242
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688242
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Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2280-2291
Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Rui Huang
Author-X-Name-First: Rui
Author-X-Name-Last: Huang
Author-Name: Ningli Wang
Author-X-Name-First: Ningli
Author-X-Name-Last: Wang
Author-Name: Liya Hau
Author-X-Name-First: Liya
Author-X-Name-Last: Hau
Title: Does economic policy uncertainty matter for commodity market in China? Evidence from quantile regression
Abstract:
This paper investigates the effect of economic policy uncertainty (EPU) on China’s agricultural and metal commodity futures returns across quantiles. We address this issue using the panel quantile regression approach, which allows for a more complete analysis of various conditions in the commodity market (i.e. bearish, normal, and bullish markets). Our empirical results reveal that domestic EPU shocks have a significantly negative effect on agricultural futures returns in bearish markets and a significantly positive effect on metal futures returns in bullish markets. The impacts of both domestic and U.S. EPU shocks on commodity markets are heterogeneous across quantiles and are sector specific. Additionally, by isolating positive and negative EPU shocks, the regression and test results indicate an asymmetric response of commodity futures prices in bullish markets. Moreover, our findings indicate that the metal futures market has a higher financialisation level than the agricultural futures market. The findings can be utilized by policymakers and investors.
Journal: Applied Economics
Pages: 2292-2308
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688243
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688243
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Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2292-2308
Template-Type: ReDIF-Article 1.0
Author-Name: Zhifeng Dai
Author-X-Name-First: Zhifeng
Author-X-Name-Last: Dai
Author-Name: Huan Zhu
Author-X-Name-First: Huan
Author-X-Name-Last: Zhu
Title: Forecasting stock market returns by combining sum-of-the-parts and ensemble empirical mode decomposition
Abstract:
In this article, we combine the sum-of-the-parts (SOP) method with Ensemble Empirical Mode Decomposition (EEMD) to forecast stock market returns. We obtain very significant stock return predictability both in statistical and economic terms. Interestingly, the strongest performance is achieved by the extended SOPEEMD method to forecast stock market returns when the price-earnings multiple growth is forecasted using the dividend yield as predictor ($$R_{oos}^2$$Roos2of 21.25%) with monthly data and the book-to-market ratio as predictor achieves $$R_{oos}^2$$Roos2 of 20.05% with monthly data. The highest monthly CER gains for the extended SOPEEMD method are for book-to-market ratio reach 14.11%. Furthermore, the evidence based on robust check supports the feasibility of our forecasting strategy.
Journal: Applied Economics
Pages: 2309-2323
Issue: 21
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688244
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688244
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Handle: RePEc:taf:applec:v:52:y:2020:i:21:p:2309-2323
Template-Type: ReDIF-Article 1.0
Author-Name: Leo Sleuwaegen
Author-X-Name-First: Leo
Author-X-Name-Last: Sleuwaegen
Author-Name: Sander Ramboer
Author-X-Name-First: Sander
Author-X-Name-Last: Ramboer
Title: Regional competitiveness and high growth firms in the EU: the creativity premium
Abstract:
The finding that the economic performance of regions is driven by a small set of productive firms calls for a granular analysis of regional growth and competitiveness. Among the productive firms, a significant contribution is made by so-called high-growth firms (HGFs), which also account for the bulk of new jobs created in the region. In this paper, we examine the variation in the incidence of HGFs across a wide set of EU regions in relation to the regional entrepreneurial ecosystem. Looking through the lens of the experimentally oriented economy, we conceptualize the essential role that the creative class plays in the formation of collaborative innovation blocs from which dynamic entrepreneurship and high-growth firms emerge. We present original evidence showing that, for the human capital present in the region, employment in creative occupations has the strongest impact on the occurrence of high-growth firms. Our evidence also points to the stimulating role played by the quality of market-supporting institutions, agglomeration, and infrastructure.
Journal: Applied Economics
Pages: 2325-2338
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1686454
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1686454
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Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2325-2338
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Boateng
Author-X-Name-First: Alexander
Author-X-Name-Last: Boateng
Author-Name: Gloria Claudio-Quiroga
Author-X-Name-First: Gloria
Author-X-Name-Last: Claudio-Quiroga
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Title: Exchange rate dynamics in South Africa
Abstract:
The structure of the nominal exchange rates in South Africa is examined by using fractional integration. We investigate the levels and the volatilities against the US dollar, the British pound, the Euro, the Japanese yen, the Chinese yuan, the Australian dollar, and the Botswanan pula. The results indicate that most series are unit root, I(1) and though there is some evidence of mean reversion, the orders of integration are close to 1, implying high levels of persistence. However, there is evidence of mean reversion for Bostwana Pula in various subsamples. For the volatilities, the stationary long memory is observed in all cases.
Journal: Applied Economics
Pages: 2339-2352
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1688245
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1688245
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Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2339-2352
Template-Type: ReDIF-Article 1.0
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Title: Examining the differences in the impact of climate change on innovation between developed and developing countries: evidence from a panel system GMM analysis
Abstract:
This article aims to explore the dynamic relationship between innovation and climate changes for a sample of 60 countries. We performed an aggregated analysis in which we use the whole sample (60 countries) and a disaggregated analysis in which we split the sample in developed (36 countries) and developing (24 countries). We estimate a balance panel dynamic System Generalized Method of Moment approach for the period 2008–2014. Findings of the aggregated analysis indicate that for the whole sample, there is a positive response from climate change to innovation. Recent climate changes have a positive impact on the innovation process. The disaggregate analysis shows that for developed countries, there is a positive response from climate changes to innovation only for total CO2 emission and CO2 emission from natural gas. However, there is a negative response from the other CO2 emission towards innovation. For the developing countries, the overall results indicate that there is no significant effect from climate change to innovation. Furthermore, findings indicate also, that the level of growth and research and development expenditure exert a positive effect on innovation process for both aggregate and disaggregate analysis.
Journal: Applied Economics
Pages: 2353-2365
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1690126
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1690126
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Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2353-2365
Template-Type: ReDIF-Article 1.0
Author-Name: Xianli Kong
Author-X-Name-First: Xianli
Author-X-Name-Last: Kong
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Lei Zhang
Author-X-Name-First: Lei
Author-X-Name-Last: Zhang
Title: Characteristics and determinants of asymmetric phase shifts in China’s manufacturing industrial production cycles
Abstract:
Employing a panel of 30 Chinese manufacturing industries from January 2003 through May 2017 (2003M01-2017M05), this study is the first attempt to investigate the characteristics and determinants of asymmetric phase shifts in China’s manufacturing industrial production cycles. The empirical results suggest that China’s manufacturing industries and aggregate industry have experienced similar frequent phase shifts, but remarkable differences exist in the phase shifts across manufacturing industries. Furthermore, China’s manufacturing industries tend to comove between cyclical phases in sync with the aggregate industrial cycle, but the comovement is asymmetric. In addition, the estimation results of the panel logit model indicate that both the spillovers through input-output linkages and some macroeconomic shocks (i.e. monetary policy and financial policy shocks) are significant determinants of China’s manufacturing industrial phase shifts; however, their effects are asymmetric. Finally, suggestions are offered to Chinese policymakers not only to weaken the economic effect of cyclical fluctuations, but also to promote growth in the manufacturing industries.
Journal: Applied Economics
Pages: 2366-2376
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1690627
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1690627
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Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2366-2376
Template-Type: ReDIF-Article 1.0
Author-Name: Raphaël Murswieck
Author-X-Name-First: Raphaël
Author-X-Name-Last: Murswieck
Author-Name: Mihaela Drăgan
Author-X-Name-First: Mihaela
Author-X-Name-Last: Drăgan
Author-Name: Mihaela Maftei
Author-X-Name-First: Mihaela
Author-X-Name-Last: Maftei
Author-Name: Diana Ivana
Author-X-Name-First: Diana
Author-X-Name-Last: Ivana
Author-Name: Astrid Fortmüller
Author-X-Name-First: Astrid
Author-X-Name-Last: Fortmüller
Title: A study on the relationship between cultural dimensions and innovation performance in the European Union countries
Abstract:
The aim of this article is to analyse the relationship between cultural dimensions and innovation performance within the EU28 countries in order to identify if cultural dimensions influence the innovation performance. The authors performed a data analysis based on an empirical study using open data of Summary Innovation Index–European Innovation Scoreboard (SII-EIS) and Hofstede cultural dimensions in order to identify innovation performance influencing factors in terms of enablers and blockers. Cultural-conditioned blockers within the innovation phases can be the reason why innovation is working more or less successfully and why certain countries are more or less performing in innovation. An essential finding of the present study was that indulgence as a cultural dimension seems to leverage more than the classic reasons the innovation performance on a nations’ level. Being aware of cultural dimensions, the present article findings can support companies to improve their innovation performance.
Journal: Applied Economics
Pages: 2377-2391
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1690628
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1690628
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Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2377-2391
Template-Type: ReDIF-Article 1.0
Author-Name: Wensheng Kang
Author-X-Name-First: Wensheng
Author-X-Name-Last: Kang
Author-Name: Ronald A. Ratti
Author-X-Name-First: Ronald A.
Author-X-Name-Last: Ratti
Author-Name: Joaquin Vespignani
Author-X-Name-First: Joaquin
Author-X-Name-Last: Vespignani
Title: Impact of global uncertainty on the global economy and large developed and developing economies
Abstract:
Global uncertainty shocks are associated with a sharp decline in global inflation, growth and interest rate. Global uncertainty shocks have more protracted, statistically significant and substantial effects on global growth, inflation and interest rate than U.S. uncertainty shocks. When controlling for domestic uncertainty, the decline in output following a rise in global uncertainty is statistically significant in each large country, except for the decline for China. For most economies, a positive shock to global uncertainty has a depressing effect on prices and official interest rates – exceptions are Brazil, Mexico and Russia, which are economies with large capital outflows during financial crises.
Journal: Applied Economics
Pages: 2392-2407
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1690629
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1690629
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Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2392-2407
Template-Type: ReDIF-Article 1.0
Author-Name: Sen Zeng
Author-X-Name-First: Sen
Author-X-Name-Last: Zeng
Author-Name: Satoru Shimokawa
Author-X-Name-First: Satoru
Author-X-Name-Last: Shimokawa
Title: The effect of health information on smoking intensity: does addiction matter?
Abstract:
We investigate how health information, such as a notification of hypertension, influences smoking intensity differently among smokers with different levels of addiction. To circumvent the endogeneity of health information, we employ a sharp regression discontinuity design that exploits the discontinuity around the cut-off point for a hypertension diagnosis. The addiction levels are conjectured by the age of smoking initiation. Using individual-level data from China, our results demonstrate that a hypertension notification reduces daily cigarette smoking by 8.01 cigarettes among less-addicted smokers in the short term, while the influence is insignificant among more-addicted smokers; the observed difference is better explained by addiction levels than by health attitudes. The long-term effects of a hypertension notification are insignificant, regardless of addiction levels. Our results may provide new support for the importance of preventing youth smoking and providing regular medical check-ups.
Journal: Applied Economics
Pages: 2408-2426
Issue: 22
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1691141
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1691141
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Handle: RePEc:taf:applec:v:52:y:2020:i:22:p:2408-2426
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Croce
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Croce
Author-Name: Emanuela Ghignoni
Author-X-Name-First: Emanuela
Author-X-Name-Last: Ghignoni
Title: The evolution of wage gaps between STEM and non-STEM graduates in a technological following economy
Abstract:
Based on the assumption that the set of skills characterizing different fields of study do not match the new technologies in the same way, we focus on the evolution of wage gaps between university graduates in STEM disciplines and other subjects. An Oaxaca decomposition technique is applied to early wages of Italian graduates after taking into account both the selection into employment and the endogeneity of major’s choice. Our results can hardly be reconciled with the hypothesis of a technological change favouring STEM graduates in Italy, and are more consistent with the worsening in the relative demand for STEM graduates.
Journal: Applied Economics
Pages: 2427-2442
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1691142
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1691142
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Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2427-2442
Template-Type: ReDIF-Article 1.0
Author-Name: Imane El Ouadghiri
Author-X-Name-First: Imane
Author-X-Name-Last: El Ouadghiri
Author-Name: Remzi Uctum
Author-X-Name-First: Remzi
Author-X-Name-Last: Uctum
Title: Macroeconomic expectations and time varying heterogeneity:evidence from individual survey data
Abstract:
The goal of this paper is to investigate forecast heterogeneity and time variability in the formation of expectations using disaggregated monthly survey data on macroeconomic indicators provided by Bloomberg from June 1998 to August 2017. We show that our panel of forecasters are not rational and are moderately heterogeneous and thus confirm that previously well-established results on asset prices hold for macroeconomic indicators. We propose a flexible hybrid forecast model defined at any time as a combination of the extrapolative, regressive, adaptive and interactive heuristics. Controlling for endogenous structural breaks, we find that experts adjust their forecast behaviour at any time with some inertia in extrapolative and adaptive profiles. Changes in the formation of expectations are triggered mostly by financial shocks, and uncertainty is dealt with by using complex processes in which the fundamentalist component overweighs chartist activity. Forecasters whose models combine different relevant rules and display high temporal flexibility provide the most accurate forecasts. Authorities can then stabilize the domestic markets by encouraging fundamentalists’ forecasts through increased transparency policy.
Journal: Applied Economics
Pages: 2443-2459
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1691713
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1691713
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Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2443-2459
Template-Type: ReDIF-Article 1.0
Author-Name: Ranajoy Bhattacharyya
Author-X-Name-First: Ranajoy
Author-X-Name-Last: Bhattacharyya
Author-Name: Sayani Ghosh
Author-X-Name-First: Sayani
Author-X-Name-Last: Ghosh
Title: Effect of the global financial meltdown on India’s aggregate export volumes
Abstract:
This paper sets up a demand-supply model to analyse India’s export performance (in terms of volumes rather than values) between 2000Q1–2014Q4. The main objective is to determine the impact of the financial meltdown of 2008 on India’s export performance. During the meltdown period, decline in price by India’s competitors in the international market resulted in (1) loss of competitiveness of India’s export goods and (2) a complete breakdown of the price mechanism affecting India’s export demand. Though export supply was not significantly affected by the meltdown episode we find evidence that exporting firms turned towards the domestic market to cope with the loss in export. The meltdown episode began to significantly affect India’s export demand and supply equations from 2009Q3. The demand and supply equations after that period became so unstable that ‘nothing worked’ for India’s exporters as they tried to counter the decline in export. Hence there was ample reason for them to panic and seek the government’s help. Government policies aimed at boosting export demand did have a positive impact on India’s export performance. Government policies to boost export supply had no impact except being palliative for the exporters at their moment of crisis
Journal: Applied Economics
Pages: 2460-2471
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1691714
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1691714
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Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2460-2471
Template-Type: ReDIF-Article 1.0
Author-Name: Ilyes Abid
Author-X-Name-First: Ilyes
Author-X-Name-Last: Abid
Author-Name: Abderrazak Dhaoui
Author-X-Name-First: Abderrazak
Author-X-Name-Last: Dhaoui
Author-Name: Stéphane Goutte
Author-X-Name-First: Stéphane
Author-X-Name-Last: Goutte
Author-Name: Khaled Guesmi
Author-X-Name-First: Khaled
Author-X-Name-Last: Guesmi
Title: Hedging and diversification across commodity assets
Abstract:
We investigate the conditional cross effects and volatility spillover between equity markets and commodity markets (oil and gold), Fama and French HML and SMB factors, volatility index (VIX) and bonds using different multivariate GARCH specifications considering the potential asymmetry and persistence behaviours. We analyse the dynamic conditional correlation between the US equity market and a set of commodity prices and risk factors to forecast the transmission of shock to the equity market firstly, and to determine and compare the optimal hedge ratios from the different models based on the hedging effectiveness of each model. Our findings suggest that all models confirm the significant returns and volatility spillovers. More importantly, we find that GO-GARCH is the best-fit model for modelling the joint dynamics of different financial variables. The results of the current study have implications for investors: (i) the equity market displays inverted dynamics with the volatility index suggesting strong evidence of diversification benefit; (ii) of the hedging assets gold appears the best hedge for the US equity market as it has a higher hedge effectiveness than oil and bonds over time; and (iii) despite these important results, a better hedge may be obtained by using well-selected firm sized and profitability-based portfolios.
Journal: Applied Economics
Pages: 2472-2492
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693016
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693016
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Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2472-2492
Template-Type: ReDIF-Article 1.0
Author-Name: Gaofeng Zou
Author-X-Name-First: Gaofeng
Author-X-Name-Last: Zou
Author-Name: Qiyuan Cheng
Author-X-Name-First: Qiyuan
Author-X-Name-Last: Cheng
Author-Name: Weijie Chen
Author-X-Name-First: Weijie
Author-X-Name-Last: Chen
Author-Name: J. Ginger Meng
Author-X-Name-First: J. Ginger
Author-X-Name-Last: Meng
Title: What causes the IPO underpricing? New evidence from China’s SME market
Abstract:
We study 10-year IPO initial returns in China’s small and medium-sized enterprise (SME) board between 2006 and 2016, including 755 IPO samples. At the same time, we test how policy changes of IPO pricing and trading mechanism affect first-day initial returns. Our article adopts the stochastic frontier approach to estimate the fair value of IPOs and decompose the components of deliberate underpricing and mis-valuation factors, then using linear regressions investigate correlation between first-day initial returns and deliberate underpricing or mis-valuation factors. We find it is mis-valuation factors, especially, the irrational behaviour of individual investors that mainly cause the IPO underpricing in China’s SME market rather than deliberate underpricing. Besides, influenced by IPO pricing policies, the characteristic of IPO pricing varies from period to period.
Journal: Applied Economics
Pages: 2493-2507
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693017
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693017
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Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2493-2507
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Dithmer
Author-X-Name-First: Jan
Author-X-Name-Last: Dithmer
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Trade openness and child health: a heterogeneous panel cointegration analysis
Abstract:
In this paper, we examine the impact of trade openness on child health, based on a cross-country panel data set covering 66 countries for the period 1960–2013. To account for the time-series properties of the data and potential cross-country heterogeneity in the impact of trade openness, the study employs heterogeneous panel cointegration techniques that are robust to omitted variables and endogeneity problems. The results reveal that trade openness and child health are cointegrated, and that trade works to reduce the child mortality rate significantly in the long-run. The results are robust to the methodology and trade openness and child health indicators employed, as well as to the presence of cross-sectional dependence and changes in the sample composition. The findings also suggest that the impact of trade on child health tends to be stronger in countries with better institutional quality, lower corruption, good governance, political stability, and sound policies that promote private sector development.
Journal: Applied Economics
Pages: 2508-2525
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693018
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693018
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Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2508-2525
Template-Type: ReDIF-Article 1.0
Author-Name: Weihan Cui
Author-X-Name-First: Weihan
Author-X-Name-Last: Cui
Title: Is debt conservatism the solution to financial constraints? An empirical analysis of Japanese firms
Abstract:
This paper investigates why firms choose the conservative financing strategy known as non-positive net debt policy, which is a more recent prevalent trend among Japanese firms. The analysis reveals that Japanese firms are more likely to be financially conservative if they are smaller, older and more profitable and have fewer growth opportunities and tangibility. The survival analysis further investigates the duration of conservative debt policy and ordinary debt policy. The evidence shows that firms adopt/abandon the conservative policy with different motivations and preferences over debt conservatism. In particular, we argue that the more financially constrained firms abandon the conservative debt policy sooner than their counterparts, while less financially constrained firms abandon the ordinary (less conservative) debt policy sooner than their counterparts. The results suggest that a firm uses a conservative debt policy in terms of net leverage as a temporary buffer to mitigate financial constraints.
Journal: Applied Economics
Pages: 2526-2543
Issue: 23
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693019
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693019
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Handle: RePEc:taf:applec:v:52:y:2020:i:23:p:2526-2543
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Charl Jooste
Author-X-Name-First: Charl
Author-X-Name-Last: Jooste
Title: Long memory, economic policy uncertainty and forecasting US inflation: a Bayesian VARFIMA approach
Abstract:
We compare inflation forecasts of a vector autoregressive fractionally integrated moving average (VARFIMA) model against standard forecasting models. U.S. inflation forecasts improve when controlling for persistence and economic policy uncertainty (EPU). Importantly, the VARFIMA model, comprising of inflation and EPU, outperforms commonly used inflation forecast models.
Journal: Applied Economics
Pages: 1047-1054
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210777
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210777
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Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1047-1054
Template-Type: ReDIF-Article 1.0
Author-Name: Li Nie
Author-X-Name-First: Li
Author-X-Name-Last: Nie
Title: Macroeconomic impacts of China’s foreign exchange reserve accumulation: a vector autoregression analysis using pure-sign-restriction approach
Abstract:
This study employs pure-sign-restriction approach analysing the macroeconomic impacts of foreign reserve accumulation and discusses the foreign exchange sterilization behaviour of the People’s Bank of China (PBoC). Sign restriction analysis shows that the effects of reserve accumulation shock are initially ambiguous on all variables, but later a positive influence only on base money can be observed. With regard to sterilization intervention, the effect is significant even though it degrades gradually over time. In China, the monetary authority actively undertakes sterilization intervention in order to remove the influence of passive release of base money caused by foreign reserve accumulation.
Journal: Applied Economics
Pages: 1055-1070
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210778
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210778
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Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1055-1070
Template-Type: ReDIF-Article 1.0
Author-Name: Eoin Reeves
Author-X-Name-First: Eoin
Author-X-Name-Last: Reeves
Author-Name: Dónal Palcic
Author-X-Name-First: Dónal
Author-X-Name-Last: Palcic
Author-Name: Darragh Flannery
Author-X-Name-First: Darragh
Author-X-Name-Last: Flannery
Author-Name: R. Richard Geddes
Author-X-Name-First: R. Richard
Author-X-Name-Last: Geddes
Title: The determinants of tendering periods for PPP procurement in the UK: an empirical analysis
Abstract:
The procurement of infrastructure projects via public–private partnerships (PPPs) is rising globally. PPPs are, however, often characterized by lengthy tendering periods, defined as the difference between contract notice and financial close. Tendering periods are important because they account for a significant proportion of overall project delivery time. Slow tendering deters bidders and thus reduces competition for contracts. We source data on 670 PPP projects in the United Kingdom and use a duration analysis model to empirically examine factors that impact tendering period duration. Our results reveal significant sectoral variation with projects in the health and housing sectors taking significantly longer to reach financial close. We also show that, after controlling for other factors, projects with higher capital values and projects that overlap with the timing of general elections are associated with significantly longer tendering periods. We further examine the impact of the competitive dialogue procurement method and find evidence that tendering periods have increased since 2006; the year competitive dialogue was introduced. We do, however, observe a significant reduction in the time between appointment of preferred bidder and financial close post-2006. This suggests that competitive dialogue is effective in reducing the scope for negotiations by preferred bidders holding quasi-monopoly advantages.
Journal: Applied Economics
Pages: 1071-1082
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210779
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210779
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Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1071-1082
Template-Type: ReDIF-Article 1.0
Author-Name: Michael E. O’Hara
Author-X-Name-First: Michael E.
Author-X-Name-Last: O’Hara
Author-Name: Philip Sirianni
Author-X-Name-First: Philip
Author-X-Name-Last: Sirianni
Title: Carbon efficiency of US colleges and universities: a nonparametric assessment
Abstract:
Under the American College and University Presidents’ Climate Commitment (ACUPCC), institutes of higher education have pledged to pursue a goal of carbon neutrality. We utilize emissions reported under the ACUPCC agreement and a nonparametric data envelopment analysis approach in order to evaluate the relative performance of signatories to the agreement in terms of producing teaching and research with the least greenhouse gas emissions. We find that while many signatory institutions are now producing their desirable outputs relatively efficiently in terms of carbon emissions, there still exists considerable variation in efficiency and potential for improvement. Results of a second stage efficiency change analysis shows evidence of both movement towards the efficiency frontier since signing, and some movement of the frontier itself, though this evidence comes primarily from teaching-focused institutions.
Journal: Applied Economics
Pages: 1083-1097
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210780
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210780
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Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1083-1097
Template-Type: ReDIF-Article 1.0
Author-Name: Yingying Xu
Author-X-Name-First: Yingying
Author-X-Name-Last: Xu
Author-Name: Zhi-Xin Liu
Author-X-Name-First: Zhi-Xin
Author-X-Name-Last: Liu
Author-Name: Hsu-Ling Chang
Author-X-Name-First: Hsu-Ling
Author-X-Name-Last: Chang
Author-Name: Adelina Dumitrescu Peculea
Author-X-Name-First: Adelina Dumitrescu
Author-X-Name-Last: Peculea
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Title: Does self-fulfilment of the inflation expectation exist?
Abstract:
This study examines the causal relationship between the actual and expected inflation in the U.S., using the bootstrap Granger full-sample causality test and sub-sample rolling-window estimation test to illustrate the self-fulfilment of inflation expectations. The full-sample result indicates that there is a bidirectional causality between the actual and expected inflation, showing the possibility of self-fulfilment of inflation expectations which illustrates that inflation is driven by inflation expectation. However, considering structural changes in two series, we find that the short-run causal nexus between the actual and expected inflation using full-sample data are fraudulent. By adopting a time-varying rolling-window approach to revisiting the dynamic causal relationships, this article identifies that the actual inflation has both positive and negative impacts on the expected inflation in distinct sub-periods. Nevertheless, inflation expectation exerts only negative effects on the actual inflation. The results point out that the self-fulfilment of inflation expectations does not exist. Given the bidirectional nexus between the actual and expected inflation, keeping a low and stable inflation is critical to price stability and anchoring of inflation expectation.
Journal: Applied Economics
Pages: 1098-1113
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210781
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210781
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Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1098-1113
Template-Type: ReDIF-Article 1.0
Author-Name: Hamza Bennani
Author-X-Name-First: Hamza
Author-X-Name-Last: Bennani
Author-Name: Matthias Neuenkirch
Author-X-Name-First: Matthias
Author-X-Name-Last: Neuenkirch
Title: The (home) bias of European central bankers: new evidence based on speeches
Abstract:
Speeches are an important vehicle for central bankers to convey individual views on the preferred policy stance. In this article, we employ an automated text linguistic approach to create an indicator that measures the tone of the 1,618 speeches delivered by members of the Governing Council (GC) during the period 1999M1–2014M4. We then relate this variable to euro area and national macroeconomic forecasts. Our key findings are as follows. First, inflation and growth expectations have a positive and significant impact on the hawkishness of a speech. Second, different growth expectations across the euro area and different preferences significantly explain discrepancies across speakers. Third, the voiced preferences of presidents of the national central banks (NCBs) largely coincide with the level of independence their central banks had at the time of the Maastricht Treaty. However, in general, there are not much differences between members of the Executive Board and the NCB presidents. Fourth, we find some evidence that central bankers adjust the gist of their speeches depending on whether they talk at home or abroad and before or after a GC meeting. Finally, differences in central banker preferences are the key source of variation in their speeches before the financial crisis.
Journal: Applied Economics
Pages: 1114-1131
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1210782
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210782
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Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1114-1131
Template-Type: ReDIF-Article 1.0
Author-Name: Henry W. Chappell
Author-X-Name-First: Henry W.
Author-X-Name-Last: Chappell
Author-Name: Rob Roy McGregor
Author-X-Name-First: Rob Roy
Author-X-Name-Last: McGregor
Title: The lower bound and the causes of monetary policy inertia: evidence from Sweden
Abstract:
In 2009, in the midst of a global recession, Sweden’s Riksbank approached a lower bound on nominal interest rates. This encounter with the lower bound provides a natural experiment for investigating the causes of monetary policy inertia. To exploit this experiment, we estimate Taylor rules with Tobit specifications that permit both interest rate smoothing and persistent shocks (serial correlation) as explanations for inertia. The interest rate smoothing hypothesis leads to a specification in which lagged actual values of the dependent variable appear on the right-hand side of the Taylor rule, while the persistent shocks hypothesis leads to a specification in which lagged values of an unobserved latent dependent variable appear on the right-hand side of the Taylor rule. The divergence of actual and latent dependent variables that occurs at the lower bound provides leverage in distinguishing the two hypotheses. For a conventional Taylor rule, we find evidence of both sources of inertia. For a modified Taylor rule that includes a measure of financial stress, our evidence suggests that interest rate smoothing is the principal source of monetary policy inertia.
Journal: Applied Economics
Pages: 1132-1146
Issue: 11
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213360
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213360
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Handle: RePEc:taf:applec:v:49:y:2017:i:11:p:1132-1146
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Chu Liu
Author-X-Name-First: Chun-Chu
Author-X-Name-Last: Liu
Author-Name: Tse-Yu Wang
Author-X-Name-First: Tse-Yu
Author-X-Name-Last: Wang
Author-Name: Guang-Zhuang Yu
Author-X-Name-First: Guang-Zhuang
Author-X-Name-Last: Yu
Title: Using AHP, DEA and MPI for governmental research institution performance evaluation
Abstract:
Under situations of limited resources, soft powers such as technology development and innovation become critical capabilities for a nation’s continuous growth and sustainability. Therefore, we used analytical hierarchy process (AHP), data envelopment analysis (DEA), and Malmquist productivity index (MPI) to evaluate the performance of research projects in 6 main fields of study managed by the Ministry of Science and Technology (MOST) in Taiwan from 2002 to 2012. Among the 6 fields of study, Agriculture and Humanities were two research fields as efficiency; and the sequence of inefficiency 4 fields were sociology, medicine, science, and engineering. Although the field of sociology was inefficiency, it was the only field show continuous growth in result of MPI analysis. Taking the fields as a whole, the result of the analysis of total factor productivity showed recession. However, as seen from the growth in technical change and in scale efficiency change, the MOST was effective to a certain extent during the period. However, the recession in technical efficiency change showed that further improvement in the planning and distribution of manpower and funds is needed.
Journal: Applied Economics
Pages: 983-994
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524131
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524131
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Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:983-994
Template-Type: ReDIF-Article 1.0
Author-Name: Xianyan Wang
Author-X-Name-First: Xianyan
Author-X-Name-Last: Wang
Author-Name: Lihong Wang
Author-X-Name-First: Lihong
Author-X-Name-Last: Wang
Title: State-enterprise relation, local economic priority, and corporate environmental responsibility
Abstract:
This paper empirically investigates how the state-enterprise relation and local government’s economic priority affect corporate environmental responsibility in a sample of Chinese polluting enterprises during 2009–2013. We find that firms appointing politically connected directors fail to fulfil their obligations in environmental responsibility, characterized by a poor enforcement of discharge fees. Besides, firms contributing a large share of industrial output to the local economy are with a smaller magnitude of discharge levies. In addition, the enforcement of discharge fees is poorer in the most polluted regions, while tourism activity and the local government’s incentive to disclose environmental information increase discharge fees.
Journal: Applied Economics
Pages: 995-1009
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524568
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524568
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Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:995-1009
Template-Type: ReDIF-Article 1.0
Author-Name: Le Wen
Author-X-Name-First: Le
Author-X-Name-Last: Wen
Author-Name: Sholeh A. Maani
Author-X-Name-First: Sholeh A.
Author-X-Name-Last: Maani
Title: Job mismatches and career mobility
Abstract:
Does over-education assist or hinder occupational advancement? Career mobility theory hypothesizes that over-education leads to a higher level of occupational advancement and wage growth over time, with mixed international empirical evidence. This paper re-tests career mobility theory directly using a rich Australian longitudinal data set. A dynamic random effects probit model is employed to examine upward occupational mobility, considering two-digit occupational rank advancement and wage growth over three-year intervals. The ‘Household, Income and Labour Dynamics in Australia’ data across nine years are employed, and a Mundlak correction model is adopted to adjust for unobserved heterogeneity effects and potential endogeneity, both of which are important to over-education analysis. Contrary to career theory, the results point to job mismatch as an economic concern rather than a passing phase, regardless of whether or not workers are skill-matched. Results further show the importance of adjusting for endogeneity.
Journal: Applied Economics
Pages: 1010-1024
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524569
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524569
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Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1010-1024
Template-Type: ReDIF-Article 1.0
Author-Name: GwanSeon Kim
Author-X-Name-First: GwanSeon
Author-X-Name-Last: Kim
Author-Name: Jun Ho Seok
Author-X-Name-First: Jun Ho
Author-X-Name-Last: Seok
Author-Name: Tyler B. Mark
Author-X-Name-First: Tyler B.
Author-X-Name-Last: Mark
Author-Name: Michael R. Reed
Author-X-Name-First: Michael R.
Author-X-Name-Last: Reed
Title: The price relationship between organic and non-organic vegetables in the U.S.: evidence from Nielsen scanner data
Abstract:
This study investigates price relationships between organic and conventional carrots, tomatoes, and lettuce in the U.S. utilizing Nielsen scanner data from 2006–2015. We employ a threshold vector error correction model (TVECM), threshold vector autoregressive model (TVAR), and threshold cointegration test to test whether market integration exists between organic and conventional vegetables as well as the existence of asymmetric price transmission. The results find positive long-run relationships between organic and conventional prices of carrots and tomatoes and show the existence of asymmetric price transmission in price pairs of lettuce and tomatoes. Our findings suggest that the price relationship between organic and conventional vegetables varies by characteristics, such as shelf life, volatility in the price premium, and substitutability.
Journal: Applied Economics
Pages: 1025-1039
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524570
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524570
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Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1025-1039
Template-Type: ReDIF-Article 1.0
Author-Name: Chuantian He
Author-X-Name-First: Chuantian
Author-X-Name-Last: He
Author-Name: Chunding Li
Author-X-Name-First: Chunding
Author-X-Name-Last: Li
Author-Name: Chuangwei Lin
Author-X-Name-First: Chuangwei
Author-X-Name-Last: Lin
Title: Trade imbalance and the endogenous optimal tariff
Abstract:
Endogenous tariff literatures reveal empirically that trade imbalance is negatively related with import tariff, this article gives a theoretical evidence and explanation to support this finding with the methodology of multi-country numerical general equilibrium modelling and simulation. We explore how optimal tariff changes after trade imbalance is introduced, and find that optimal tariffs decrease substantially, either for surplus or deficit countries, when imbalance is considered. Specifically, when the imbalance is modelled in endogenous monetary and inside-money structures, the optimal tariffs decrease by 26% globally on average. Our results suggest that the deepening trade imbalance is beneficial to the global trade liberalization due to its driving tariffs down.
Journal: Applied Economics
Pages: 1040-1051
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524974
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524974
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Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1040-1051
Template-Type: ReDIF-Article 1.0
Author-Name: Mary Arends-Kuenning
Author-X-Name-First: Mary
Author-X-Name-Last: Arends-Kuenning
Author-Name: Kathy Baylis
Author-X-Name-First: Kathy
Author-X-Name-Last: Baylis
Author-Name: Rafael Garduño-Rivera
Author-X-Name-First: Rafael
Author-X-Name-Last: Garduño-Rivera
Title: The effect of NAFTA on internal migration in Mexico: a regional economic analysis
Abstract:
Trade facilitates growth in some regions of a country while shrinking others, and therefore to benefit from trade, labour may need to be able to migrate. This mobility is particularly crucial in a developing country with high income inequality like Mexico. We seek to answer the following questions: What characteristics facilitate or hinder that internal migration? Has trade liberalization changed the pattern of internal migration in Mexico? We first predict regional economic growth resulting from changes in Mexico-US tariffs by sector. We find that trade liberalization appears to have largely benefited the manufacturing sector. Next, using a spatial gravity model of migration, we find that while economic growth from trade openness drew workers to urban regions in the northern Border States of Mexico, much of the trade-driven migration occurred before NAFTA. Second, contrary to popular belief, migration from largely rural states appears to have decreased since NAFTA. We also find evidence that migration to the United States increased after NAFTA. Last, we find that income disparity in both the destination and origin region deters migration and that this effect increases after NAFTA. Thus, we see evidence that within-region income disparity can hinder migration, potentially exacerbating income disparity among regions.
Journal: Applied Economics
Pages: 1052-1068
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524976
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524976
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Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1052-1068
Template-Type: ReDIF-Article 1.0
Author-Name: John A. Karikari
Author-X-Name-First: John A.
Author-X-Name-Last: Karikari
Author-Name: Hashem Dezhbakhsh
Author-X-Name-First: Hashem
Author-X-Name-Last: Dezhbakhsh
Title: The United States’ higher education antitrust exemption and college enrollment
Abstract:
This study examines the effect of the higher education antitrust exemption on enrollment of financial aid applicants at highly selective private colleges. The antitrust exemption, used since 2002, was extended to 2022 by the U.S. Congress in 2015, allowing colleges with need-blind admission policy to use common standards without discussing or comparing individual awards. Our findings, which are contrary to earlier studies, suggest that the likelihood of enrollment at the colleges implementing the antitrust exemption increased compared to those that did not. Concerns about the adverse effect of the exemption on enrollment, therefore, seems to be unwarranted. Moreover, the common standards used by need-blind colleges do not seem to increase college access for low income students. These findings can be useful to policy makers who soon have to consider extending the exception beyond 2022.
Journal: Applied Economics
Pages: 1069-1080
Issue: 10
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524978
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524978
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Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1069-1080
Template-Type: ReDIF-Article 1.0
Author-Name: Johannes Sauer
Author-X-Name-First: Johannes
Author-X-Name-Last: Sauer
Author-Name: Hans Vrolijk
Author-X-Name-First: Hans
Author-X-Name-Last: Vrolijk
Title: Innovation and performance – evidence at micro level
Abstract:
This empirical study aims to shed light on the link between innovation and economic performance at micro level. Based on a comprehensive survey among dairy and crop farms in the Netherlands we estimate a structural multi-stage model to deliver evidence on the effect of engagement and investment in innovation on the production of product, process and organizational or marketing innovations as well as on the effect of such innovations on farm level productivity. The results suggest various market and farm behaviour related factors to stimulate an increase in innovation engagement and production. Furthermore, the study reveals that indeed a greater innovation investment per unit (innovation input) leads to a higher probability of producing at least one successful product, process and/or organizational or marketing innovation (innovation output). The production of process and organizational or marketing related innovation leads to significant productivity gains. Various recommendations towards a more effective and efficient innovation policy are finally given.
Journal: Applied Economics
Pages: 4673-4699
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597252
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597252
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Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4673-4699
Template-Type: ReDIF-Article 1.0
Author-Name: Shyama Ratnasiri
Author-X-Name-First: Shyama
Author-X-Name-Last: Ratnasiri
Author-Name: Ranjika Walisinghe
Author-X-Name-First: Ranjika
Author-X-Name-Last: Walisinghe
Author-Name: Nicholas Rohde
Author-X-Name-First: Nicholas
Author-X-Name-Last: Rohde
Author-Name: Ross Guest
Author-X-Name-First: Ross
Author-X-Name-Last: Guest
Title: The effects of climatic variation on rice production in Sri Lanka
Abstract:
We study the responsiveness of rice production to climatic variation using a recent pseudo-panel data set from Sri Lanka. Output per farm is modelled as a non-linear function of temperature and rainfall (and other standard controls) using fixed effects regressions. We find that both climatic variables have concave, non-monotonic effects upon production, and that output is close to maximized at current climatic values. This implies that variations in growing conditions are likely to have negative effects upon production. Random simulations are used to model these impacts under various climate change scenarios, and we find that increasing temperatures will adversely affect rice production much more than varying rainfall, although the effects of a small ceteris paribus rise in temperature are positive. As rice production is a key component in economic output for Sri Lanka and other developing countries, our results have implications for food policy and poverty management in the future.
Journal: Applied Economics
Pages: 4700-4710
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597253
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597253
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Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4700-4710
Template-Type: ReDIF-Article 1.0
Author-Name: Edouard Wemy
Author-X-Name-First: Edouard
Author-X-Name-Last: Wemy
Title: The labour income share and the relative price of investment in the US: an empirical investigation
Abstract:
Several studies argue that the recent decline in the secular trend of the labour income share is mostly driven by capital-embodied technological progress which is typically identified with trend reductions in the relative price of investment. In this paper, I use data from the United States to assess the nature of the relationship between trends in the labour share and the relative price of investment. Results from co-integration tests reveal that the share and the relative price of investment are most likely not co-integrated. However, co-variation tests indicate that both time series share a common stochastic component, and additional tests of structural breaks point at the presence of a common change in the mean or trend of both series. These results suggest that capital-embodied or investment-specific technological progress may have played an important role in the decline of the secular trend of the labour share.
Journal: Applied Economics
Pages: 4711-4725
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597254
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597254
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Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4711-4725
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Borghesi
Author-X-Name-First: Richard
Author-X-Name-Last: Borghesi
Author-Name: Kiyoung Chang
Author-X-Name-First: Kiyoung
Author-X-Name-Last: Chang
Author-Name: Ying Li
Author-X-Name-First: Ying
Author-X-Name-Last: Li
Title: Firm value in commonly uncertain times: the divergent effects of corporate governance and CSR
Abstract:
Economic uncertainty disrupts firms’ ability to create value. Most related literature examines how various organizational characteristics affect value under extreme conditions – the global financial crisis. However, recent work in quantifying economic uncertainty now makes it possible to take a more nuanced approach in investigating the conditions under which this value reduction can be mitigated during more ‘commonly uncertain’ periods. In this paper we analyze the effects of corporate governance mechanisms and social responsibility investments on Tobin’s q across 13 years and 40 countries. Evidence suggests that shareholder-centric corporate governance policies restrict board and executive flexibility during uncertain times, and therefore stifle their ability to react effectively to adverse macroeconomic changes. We also find that CSR initiatives serve as insurance in that they preserve value under uncertainty by acting as a reservoir of social capital.
Journal: Applied Economics
Pages: 4726-4741
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597255
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597255
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Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4726-4741
Template-Type: ReDIF-Article 1.0
Author-Name: Ganghua Mei
Author-X-Name-First: Ganghua
Author-X-Name-Last: Mei
Author-Name: Robert McNown
Author-X-Name-First: Robert
Author-X-Name-Last: McNown
Title: Dynamic causality between the U.S. stock market, the Chinese stock market and the global gold market: implications for individual investors’ diversification strategies
Abstract:
This paper proposes a generalization of the prior VAR and EGARCH model to explore the linkage between returns and volatility transmissions in the U.S. stock market, the Chinese stock market, and the global gold market from 10 July 1996 to 20 July 2018. We found that past returns of the U.S. stock market can predict the current returns of the other two markets, and that significant reciprocal volatility transmission existed within and across all three markets. We further implemented average out-of-sample (OOS) forecasting to show that a risk-adjusted portfolio, such as mean-variance with sample estimator, does not outperform an equal-weighted portfolio. This provides insights for individual investors and helps to explain the ongoing disagreement in the portfolio literature concerning the effectiveness of risk-adjusted portfolios and equal-weighted portfolios when the number of assets is small.
Journal: Applied Economics
Pages: 4742-4756
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1601156
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1601156
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Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4742-4756
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Méndez
Author-X-Name-First: Fabio
Author-X-Name-Last: Méndez
Title: Training opportunities in monopsonistic labour markets
Abstract:
This paper studies the empirical relationship between the extent of monopsonistic power observed in occupational labour markets and the training opportunities available to workers in those markets; using data from the American National Longitudinal Survey of Youth of 1979. The results reveal a positive and significant association between monopsony power and training availability. The estimated association is found to be stronger for individuals with a college degree, with longer tenure in their jobs, and higher wages. These results are consistent across several econometric specifications that control for time, occupation, and individual fixed effects.
Journal: Applied Economics
Pages: 4757-4768
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602707
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602707
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Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4757-4768
Template-Type: ReDIF-Article 1.0
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Alan Renwick
Author-X-Name-First: Alan
Author-X-Name-Last: Renwick
Author-Name: Bruce Greig
Author-X-Name-First: Bruce
Author-X-Name-Last: Greig
Title: Modelling the heterogeneous effects of stocking rate on dairy production: an application of unconditional quantile regression with fixed effects
Abstract:
This article analyses the effects of stocking rate on dairy production, using New Zealand dairy farm business data for the period 2005–2014. Unlike previous studies that assume a homogenous relationship between stocking rate and dairy production, we contribute to the literature by investigating the heterogeneous effects of stocking rate on milksolids production and applying an unconditional quantile regression model with fixed effects to control for unobserved farm-specific traits that are time invariant. The empirical results show that stocking rate exerts significant heterogeneous effects on milksolids production at different quantiles. In particular, we find that an additional increase in stocking rate (i.e. one cow/ha increase) increases milksolids production per hectare by between 17% and 25% but decreases milksolids production per cow by between 5% and 12%. In addition, we find that milking interval, dairy breed, farm labour, access to irrigation and farm location are important factors that increase milksolids production.
Journal: Applied Economics
Pages: 4769-4780
Issue: 43
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602710
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602710
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Handle: RePEc:taf:applec:v:51:y:2019:i:43:p:4769-4780
Template-Type: ReDIF-Article 1.0
Author-Name: Nikeel Kumar
Author-X-Name-First: Nikeel
Author-X-Name-Last: Kumar
Author-Name: Ronald Ravinesh Kumar
Author-X-Name-First: Ronald Ravinesh
Author-X-Name-Last: Kumar
Author-Name: Arvind Patel
Author-X-Name-First: Arvind
Author-X-Name-Last: Patel
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Author-Name: Peter Josef Stauvermann
Author-X-Name-First: Peter Josef
Author-X-Name-Last: Stauvermann
Title: Modelling inbound international tourism demand in small Pacific Island countries
Abstract:
In this study, we estimate inbound international tourism demand models at the individual source market-destination and overall destination levels for Fiji, Cook Islands, Tonga and Vanuatu from 2002Q1 to 2016Q2 and Samoa from 2002Q4 to 2015Q3. Tourism demand is measured by visitor arrivals, tourism prices, the source country’s real GDP, tourism prices in substitute destinations, seasonality and structural breaks, all of which are considered plausible determinants. The models are estimated using the ARDL-bounds approach, structural breaks are identified using the Bai and Perron break test, and seasonality is tested using the US Census Bureau’s X-13 ARIMA-SEATS methodology. The study is important because it presents new evidence on price, income, and substitute price sensitivity, word of mouth, seasonality, and structural-breaks effects in Pacific island destinations.
Journal: Applied Economics
Pages: 1031-1047
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646887
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646887
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Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1031-1047
Template-Type: ReDIF-Article 1.0
Author-Name: Thi-Ngoc Anh Nguyen
Author-X-Name-First: Thi-Ngoc Anh
Author-X-Name-Last: Nguyen
Author-Name: Kiyotaka Sato
Author-X-Name-First: Kiyotaka
Author-X-Name-Last: Sato
Title: Invoice currency choice, nonlinearities and exchange rate pass-through
Abstract:
Estimating time-varying thresholds as a proxy for exporter’s predicted exchange rates, this study proposes a new approach to analyse possible asymmetric behaviour of exchange rate pass-through (ERPT) or pricing-to-market (PTM) in Japanese exports between yen appreciation and depreciation periods. Constructing the industry-specific nominal effective exchange rate on a contract (invoice) currency basis, we perform the multivariate threshold near-vector autoregressive (near-MTVAR) estimation and reveal a strong tendency of symmetric ERPT in the short-run, between yen appreciation and depreciation periods. From the 2000s, however, Japanese machinery exporters increased the degree of PTM even in the long-run, while other industries raised the degree of long-run ERPT, reflecting the difference of product differentiation across industries. This evidence has significant implications for the recent unresponsiveness of the Japanese trade balance to the large depreciation of the yen.
Journal: Applied Economics
Pages: 1048-1069
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1650884
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1650884
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Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1048-1069
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Canarella
Author-X-Name-First: Giorgio
Author-X-Name-Last: Canarella
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Stephen M. Miller
Author-X-Name-First: Stephen M.
Author-X-Name-Last: Miller
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Title: Does real U.K. GDP have a unit root? Evidence from a multi-century perspective
Abstract:
We employ linear and nonlinear unit-root tests to examine the stationarity of five multi-century historical U.K. series of real output compiled by the Bank of England. Three series span 1270 to 2016 and two series span 1700 to 2016. These datasets represent the longest span of historical real output data available and, thus, provide the environment for which unit-root tests are most powerful. A key feature of our test is its simultaneous allowance for two types of nonlinearity: time-dependent (structural breaks) nonlinearity and state-dependent (asymmetric adjustment) nonlinearity. The key finding of the test, contrary to what other more popular nonlinear unit-root tests suggest, provides strong evidence that the main structure of the five series is a stationary process characterized by an asymmetric nonlinear adjustment and a permanent break affecting both the intercept and the trend. A major policy implication of this finding is fiscal and/or monetary stabilization policies have only temporary effects on the output levels of the United Kingdom.
Journal: Applied Economics
Pages: 1070-1087
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1655138
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1655138
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Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1070-1087
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gausden
Author-X-Name-First: Robert
Author-X-Name-Last: Gausden
Author-Name: Mohammad S. Hasan
Author-X-Name-First: Mohammad S.
Author-X-Name-Last: Hasan
Title: Comparative performances of measures of consumer and economic sentiment in forecasting consumption: a multi-country analysis
Abstract:
This paper seeks to compare the capabilities of assorted measures of consumer and economic sentiment in predicting the growth of household expenditure. An analysis of quarterly data on five European countries shows that for none of these can the model which incorporates the EU’s headline consumer confidence indicator be deemed to be significantly inferior to any of its seven rivals. However, the rankings of the sentiment variables are seen to be influenced by: the proportion of total spending by households that is devoted to durable goods; and the nature of the behaviour of consumption over the forecast interval.
Journal: Applied Economics
Pages: 1088-1104
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659489
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659489
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Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1088-1104
Template-Type: ReDIF-Article 1.0
Author-Name: Mary J. Lopez
Author-X-Name-First: Mary J.
Author-X-Name-Last: Lopez
Author-Name: Sita Slavov
Author-X-Name-First: Sita
Author-X-Name-Last: Slavov
Title: Do immigrants delay retirement and social security claiming?
Abstract:
We use data from the Health and Retirement Study (HRS) to examine how immigrants’ retirement and Social Security claiming patterns compare to those of natives. We find that immigrants retire and claim Social Security at older ages than natives, an effect that is similar across immigrant ethnic groups and more pronounced among immigrants who arrived in the U.S. after age 40. We discuss and explore possible mechanisms for these differences. Hazard models suggests that these differences arise because immigrants have lower retirement and claiming hazard rates in their early 60s. We do not find evidence of an increase in the rate at which immigrants move abroad or exit the survey, compared to U.S. natives, in their late 50s through 60s, a finding that is consistent with immigrants retiring in the U.S. rather than abroad. These results are important given the rising share of older immigrants living in the U.S., and they have implications for the impact of immigration on government finances as well as the retirement security of an important subgroup of the population.
Journal: Applied Economics
Pages: 1105-1123
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659492
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659492
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Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1105-1123
Template-Type: ReDIF-Article 1.0
Author-Name: Xiangcai Meng
Author-X-Name-First: Xiangcai
Author-X-Name-Last: Meng
Title: The time-frequency dependence of unemployment on real input prices: a wavelet coherency and partial coherency approach
Abstract:
While the dependence of unemployment on real oil price and real interest rate is an important issue that has been addressed only in the time dimension, little is known about the movements of real input prices and their impact on unemployment in the time-frequency space. With a continuous wavelet coherency and partial coherency approach and monthly data of Japan and US from January 1960 to May 2017, this paper contributes to the literature by examining the characteristics of the dependence of unemployment on real input prices across frequencies and over time. The empirical results indicate that: First, a rise in real oil price leads to productivity growth slowdown and unemployment increase at the scale of 16–64 months after 1990 for Japan and 8–24 months after 2005 for US. Second, an increase in real interest rate results in higher unemployment at the 16–32-month scale before 1974 for Japan and 8–64-month scale before 2000 for US. Third, the degree of integration between labour market and energy market in US is higher than that in Japan. This study provides time-frequency evidence to the supply side hypothesis about the relationships between input prices and unemployment.
Journal: Applied Economics
Pages: 1124-1140
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659495
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659495
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Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1124-1140
Template-Type: ReDIF-Article 1.0
Author-Name: Komivi Afawubo
Author-X-Name-First: Komivi
Author-X-Name-Last: Afawubo
Author-Name: Mawuli K. Couchoro
Author-X-Name-First: Mawuli K.
Author-X-Name-Last: Couchoro
Author-Name: Messan Agbaglah
Author-X-Name-First: Messan
Author-X-Name-Last: Agbaglah
Author-Name: Tchapo Gbandi
Author-X-Name-First: Tchapo
Author-X-Name-Last: Gbandi
Title: Mobile money adoption and households’ vulnerability to shocks: Evidence from Togo
Abstract:
We investigate the determinants of mobile money adoption process and whether its use helps households in Togo to be resilient to predictable and unpredictable life events. Using ordered logit and sequential logit models, our results show that in the adoption process, households benefit from weak ties of social groups such as religious group and informal saving group for the adoption of mobile money. We equally find that being client of banks or microfinance institutions act as powerful channels from one step to another in the process. Besides, our findings reveal that households whoever use mobile money seem to be more resilient to climatic shocks such as drought, irregular rain, soil degradation, erosion and fertility reduction and to shock that affect households’ assets (non-climatic: high prices of agricultural inputs). However, the picture is more contrasted when the individuals are classified by disadvantaged groups such as rural people, women, less educated and people with low incomes.
Journal: Applied Economics
Pages: 1141-1162
Issue: 10
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659496
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659496
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Handle: RePEc:taf:applec:v:52:y:2020:i:10:p:1141-1162
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Author-Name: Elías D. Saenz-Rojo
Author-X-Name-First: Elías D.
Author-X-Name-Last: Saenz-Rojo
Author-Name: Adam G. Walke
Author-X-Name-First: Adam G.
Author-X-Name-Last: Walke
Title: Yield spreads, currency movements, and recession predictability for southern border economies in the United States
Abstract:
Prior research establishes that the spread between long- and short-term bond yields often provides valuable information for predicting business cycle downturns. This study examines the predictive capacity of the yield spread for the United States metropolitan economies situated along the border with Mexico. Because of the location of these urban economies and various economic ties linking them with twin cities across the border, the Mexico yield spread, and the real dollar/peso exchange rate are also employed as potential recession predictors. Results suggest that a flattening of the yield curve for either country tends to increase the probability of recessions in border economies. Furthermore, declines in the real value of the peso, which are typically associated with greater cross-border manufacturing activity, are found to reduce recession likelihoods in the metropolitan economies examined on the north side of the international boundary.
Journal: Applied Economics
Pages: 2910-2921
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251556
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251556
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Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2910-2921
Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Holger Strulik
Author-X-Name-First: Holger
Author-X-Name-Last: Strulik
Title: Religiosity and income: a panel cointegration and causality analysis
Abstract:
In this article, we examine the long-run relationship between religiosity and income using retrospective data on church attendance rates for a panel of countries from 1930 to 1990. We employ panel cointegration and causality techniques to control for omitted variable and endogeneity bias and test for the direction of causality. We show that there exists a negative long-run relationship between the level of religiosity, measured by church attendance, and the level of income, measured by the log of GDP per capita. The result is robust to alternative estimation methods, potential outliers, different samples, different measures of church attendance and alternative specifications of the income variable. Long-run causality runs in both directions, higher income leads to declining religiosity and declining religiosity leads to higher income.
Journal: Applied Economics
Pages: 2922-2938
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251562
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251562
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Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2922-2938
Template-Type: ReDIF-Article 1.0
Author-Name: Najibullah Hassanzoy
Author-X-Name-First: Najibullah
Author-X-Name-Last: Hassanzoy
Author-Name: Shoichi Ito
Author-X-Name-First: Shoichi
Author-X-Name-Last: Ito
Author-Name: Hiroshi Isoda
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Isoda
Author-Name: Yuichiro Amekawa
Author-X-Name-First: Yuichiro
Author-X-Name-Last: Amekawa
Title: Cointegration and spatial price transmission among wheat and wheat-flour markets in Afghanistan
Abstract:
This article examines cointegration and spatial price transmission among Afghan wheat and flour markets as well as their linkages with those of supplier countries and global markets. Unit root tests, consistent momentum threshold autoregressive (M-TAR) models and vector error correction models (asymmetric and symmetric) are employed to achieve research objectives. The results suggest that provincial wheat and flour markets may have a long-run relationship with principal market of Kabul. Afghan wheat and flour markets may also be cointegrated with their respective global, Kazakh and Pakistani markets. While provincial wheat markets might adjust to divergence from their long-run equilibrium with Kabul wheat market, some of the provincial flour markets may not respond to deviation from their long-run equilibrium with Kabul flour market. The speed of adjustment towards the long-run Afghan–Pakistani and Afghan–Kazakh equilibrium may be faster for Afghan flour than wheat markets. The equilibrium adjustment coefficients are generally small and market imperfections may exist, however. A shock in Kabul wheat and flour markets may have long-lasting effect on the respective provincial markets whereas a shock in global wheat and Pakistani, and Kazakh wheat and flour markets might have transitory effect on the corresponding Afghan markets.
Journal: Applied Economics
Pages: 2939-2955
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251563
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251563
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Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2939-2955
Template-Type: ReDIF-Article 1.0
Author-Name: Laura Beaudin
Author-X-Name-First: Laura
Author-X-Name-Last: Beaudin
Title: Marriage equality and interstate migration
Abstract:
This study examines the impact of state imposed, marriage equality laws on interstate migration prior to the 26 June 2015 U.S. Supreme Court ruling to legalize same-sex marriage in all states. Results of the estimation of a series of probit models suggest that all head of households are more likely to leave states without marriage equality. This estimated impact is significantly larger for household heads in same-sex relationships. When examining the migration choices separately by both sex and relationship type, this result remains significant for female heads of households in different-sex relationships and male heads of households in same-sex relationships. Simulations, using the results of the probit estimations, the analysis of regional trends, and recent rebellions against the Supreme Court ruling indicate that state level, marriage equality laws may be aggravating the imbalanced distribution of same- and different-sex couple households across the country.
Journal: Applied Economics
Pages: 2956-2973
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251565
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251565
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Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2956-2973
Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Amir Arjomandi
Author-X-Name-First: Amir
Author-X-Name-Last: Arjomandi
Author-Name: K. Hervé Dakpo
Author-X-Name-First: K. Hervé
Author-X-Name-Last: Dakpo
Title: Banks’ efficiency and credit risk analysis using by-production approach: the case of Iranian banks
Abstract:
This article uses a by-production approach that integrates credit risk to monitor bank efficiency. The method overcomes the possible misspecification issues of the commonly assumed weak disposability (WDA) of undesirable outputs. In addition, our measure extends the classic by-production approach by including statistical aspects through subsampling techniques. We have also provided an algorithm to correct related infeasibilities. Using this approach, we investigate the performance of Iranian banks and credit risk management in the sector for the period 1998–2012. Non-performing loans (NPLs) have been used as an undesirable output and proxy for credit risk in our models. Based on our empirical results, although the banks generally exhibited efficiency improvements over time, their credit risk performance deteriorated considerably after the regulatory changes introduced in 2005. These findings confirm that credit quality can be monitored more actively across Iranian banks.
Journal: Applied Economics
Pages: 2974-2988
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251567
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251567
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Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2974-2988
Template-Type: ReDIF-Article 1.0
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Author-Name: Lola Hernandez
Author-X-Name-First: Lola
Author-X-Name-Last: Hernandez
Author-Name: Nicole Jonker
Author-X-Name-First: Nicole
Author-X-Name-Last: Jonker
Title: In love with the debit card but still married to cash
Abstract:
Using shopping diary survey data, we show that changing payment patterns is a challenging task; even when consumers have fallen in love with a new payment instrument, they find it hard to divorce from their old payment instrument. We find a discrepancy between how consumers prefer to pay and how they actually pay. Half of the consumers who prefer the debit card to cash don’t use the debit card to pay a majority of their point-of-sale transactions. Our regression results show that the habit of paying cash plays a significant role explaining the presence of a gap.
Journal: Applied Economics
Pages: 2989-3004
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251568
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251568
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Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:2989-3004
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher S. Brunt
Author-X-Name-First: Christopher S.
Author-X-Name-Last: Brunt
Author-Name: John R. Bowblis
Author-X-Name-First: John R.
Author-X-Name-Last: Bowblis
Title: Health insurer market power and employer size: an empirical evaluation of insurer concentration and wages through compensating differentials
Abstract:
This article explores the differentiated effects of health insurer market concentration on net compensation of employees across distinct firm sizes. Consistent with the existing literature evaluating insurer market concentration and the theory of compensating differentials, we find evidence of higher premiums and reduced net compensation for employees in markets with more concentrated insurers. Furthermore, we find evidence that the magnitude of these effects is distinctly smaller for large employers. This implies that mergers of large health insurance companies may have a significant impact on small businesses but that the effect is mitigated for larger employers.
Journal: Applied Economics
Pages: 3005-3015
Issue: 30
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251569
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251569
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Handle: RePEc:taf:applec:v:49:y:2017:i:30:p:3005-3015
Template-Type: ReDIF-Article 1.0
Author-Name: David Coady
Author-X-Name-First: David
Author-X-Name-Last: Coady
Author-Name: Allan Dizioli
Author-X-Name-First: Allan
Author-X-Name-Last: Dizioli
Title: Income inequality and education revisited: persistence, endogeneity and heterogeneity
Abstract:
This article presents new results on the relationship between income inequality and education expansion – that is, increasing average years of schooling and reducing inequality of schooling. When dynamic panel estimation techniques are used to address issues of persistence and endogeneity, we find a large, positive, statistically significant and stable relationship between inequality of schooling and income inequality, especially in emerging and developing economies and among older-age cohorts. The relationship between income inequality and average years of schooling is positive, consistent with constant or increasing returns to additional years of schooling. While this positive relationship is small and not always statistically significant, we find a statistically significant negative relationship with years of schooling of younger cohorts. Statistical tests indicate that our dynamic estimators are consistent and that our identifying instruments are valid. Policy simulations suggest that education expansion will continue to be inequality reducing. This role will diminish as countries develop, but it could be enhanced through a stronger focus on reducing inequality in the quality of education.
Journal: Applied Economics
Pages: 2747-2761
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406659
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406659
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Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2747-2761
Template-Type: ReDIF-Article 1.0
Author-Name: W.D. Chen
Author-X-Name-First: W.D.
Author-X-Name-Last: Chen
Title: Detecting policy effects with wage rigidity and instability – evidence on the Taiwan labour market
Abstract:
With stagnant wages and growing productivity, a widening gap is becoming prevalent in global labour markets. The relationship between wages and productivity has become indeterminate, especially after the 2008 financial crisis. This article presents the phenomenon for why salary rarely follows up with productivity after an economy recovers. By using the GMM method, this study shows the interaction among wage, productivity and tightness, in which we illustrate the Taiwan labour market as an example to show how hiring system changes press wages away from an efficient allocation, causing instability and market failure. Surveying 35 labour markets for different industries, we reveal that the situation in the labour markets has drastically changed since 2008. We find that this resulted in a severe problem when the Taiwan firms got used to policies like ‘22K’, ‘fix-term contract’ and ‘unpaid leave’ programmes. These plans negatively impacted the economy and raised market failure with instability.
Journal: Applied Economics
Pages: 2762-2776
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409416
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409416
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Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2762-2776
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Di Liddo
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Di Liddo
Author-Name: Cosimo Magazzino
Author-X-Name-First: Cosimo
Author-X-Name-Last: Magazzino
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Title: Government size, decentralization and growth: empirical evidence from Italian regions
Abstract:
The aim of this study is to empirically assess the relationship among government size, decentralization and economic growth in Italian ordinary regions. The empirical analysis, based on a panel dataset on Italian regions, provides evidence in support of the existence of an inverted U-shaped relationship between public expenditure and economic growth, that depends on the degree of fiscal decentralization. In particular, according to our estimates on the specific Italian case, the optimal degree of decentralization is around 32%, while the optimal government size value is approximately 52%.
Journal: Applied Economics
Pages: 2777-2791
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409417
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409417
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Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2777-2791
Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Yu-Bo Suen
Author-X-Name-First: Yu-Bo
Author-X-Name-Last: Suen
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Author-Name: Joyce Hsieh
Author-X-Name-First: Joyce
Author-X-Name-Last: Hsieh
Title: Government size, government debt and globalization
Abstract:
This article empirically investigates the effect of globalization on government size and debt. Using panel heterogeneous cointegration techniques to a panel of developing and developed countries, it finds that globalization reduces government size and debt. In terms of components of globalization, government size is found to increase with trade openness but decreases with financial, social and political globalization. On the other hand, government debt increases with financial and trade openness but decreases with social and political globalization. The evidence is robust to different estimation methods and different samples. Our data also indicate unidirectional causality running from globalization measures to government size and debt.
Journal: Applied Economics
Pages: 2792-2803
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409418
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409418
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Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2792-2803
Template-Type: ReDIF-Article 1.0
Author-Name: Yingdan Mei
Author-X-Name-First: Yingdan
Author-X-Name-Last: Mei
Author-Name: Diane Hite
Author-X-Name-First: Diane
Author-X-Name-Last: Hite
Author-Name: Brent Sohngen
Author-X-Name-First: Brent
Author-X-Name-Last: Sohngen
Title: Estimation of house price differential of urban tree cover: an application of sample selection approach
Abstract:
Hedonic valuation of urban forest amenities tends to assume that these attributes are exogenous to sample selection, which might render the estimated results misleading. This article intends to estimate the house price differential of urban tree cover by considering the sample selection issue. The main hypothesis is that houses with high tree cover generates higher utility to consumers, and thus leads to higher house price, ceteris paribus. It may attribute to the fact that consumers self-select into purchasing houses with high- or low-density tree cover based on some unobserved systematically different characteristics. As a result, estimates from sample selection models confirm the hypothesis that purchasing a house with high-density tree cover leads to a positive price differential compared with the low-density tree cover in Napa, Los Angeles, and that buying a low-density tree cover house results in negative price differential in Napa, Los Angeles.
Journal: Applied Economics
Pages: 2804-2811
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409419
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409419
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Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2804-2811
Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: The value of a year’s general education for reducing the symptoms of dementia
Abstract:
We present a method for estimating the benefits of years of education for reducing dementia symptoms based on the cost savings that would accrue from continuing independent living rather than relying on formal or informal carers. Our method for estimating the benefits of education involves three steps: first taking a year of education and seeing how much this lowers dementia, second using this dementia reduction and estimating how much independent living is affected and third applying the change in caregiving costs associated with the independent living change. We apply our method for estimating education benefits to a National Alzheimer’s Coordinating Center sample of 17,239 participants at 32 US Alzheimer’s disease centres over the period September 2005 and May 2015.
Journal: Applied Economics
Pages: 2812-2823
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409420
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409420
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Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2812-2823
Template-Type: ReDIF-Article 1.0
Author-Name: Yuan Chen
Author-X-Name-First: Yuan
Author-X-Name-Last: Chen
Author-Name: Bingsheng Liu
Author-X-Name-First: Bingsheng
Author-X-Name-Last: Liu
Author-Name: Yinghua Shen
Author-X-Name-First: Yinghua
Author-X-Name-Last: Shen
Author-Name: Xueqing Wang
Author-X-Name-First: Xueqing
Author-X-Name-Last: Wang
Title: Spatial analysis of change trend and influencing factors of total factor productivity in China’s regional construction industry
Abstract:
Total factor productivity (TFP) is a measure of long-term economic growth and a comprehensive industry-level productivity measure. There are large gaps in China’s regional construction industry development due to unbalanced regional economy. Based on TFP measurement, this article puts forward a two-hierarchical analysis framework with coefficient of variation, Moran scatterplot and coefficient of convergence to analyse change trend of the construction industry TFP in three major regions in terms of spatial diversity, correlation and convergence. Then, the geographically weighted regression model is utilized to explore the influencing mechanism on the TFP. The results indicate the differences of the regional construction industry TFP are enlarging. There is obvious spatial correlation and heterogeneity in the regional TFP without a relatively stable space pattern. The TFP also exhibits convergence effects among three major regions. The construction industry productivity in all regions is significantly affected by economic environment, industrial organization structure and technological level. Industrial organization structure exerts the various influences on the productivity in different regions.
Journal: Applied Economics
Pages: 2824-2843
Issue: 25
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1409421
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1409421
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Handle: RePEc:taf:applec:v:50:y:2018:i:25:p:2824-2843
Template-Type: ReDIF-Article 1.0
Author-Name: Jérôme Creel
Author-X-Name-First: Jérôme
Author-X-Name-Last: Creel
Author-Name: Paul Hubert
Author-X-Name-First: Paul
Author-X-Name-Last: Hubert
Author-Name: Mathilde Viennot
Author-X-Name-First: Mathilde
Author-X-Name-Last: Viennot
Title: The effect of ECB monetary policies on interest rates and volumes
Abstract:
This article assesses the transmission of ECB monetary policies, conventional and unconventional, to both interest rates and lending volumes or bond issuance for three types of different economic agents through five different markets: sovereign bonds at 6-month, 5-year and 10-year horizons, loans to nonfinancial corporations and housing loans to households, during the financial crisis, and for the four largest economies of the euro area. We look at three different unconventional tools: excess liquidity, longer-term refinancing operations and securities held for monetary policy purposes following the decomposition of the ECB’s Weekly Financial Statements. We first identify series of ECB policy shocks at the euro area aggregate level by removing the systematic component of each series and controlling for announcement effects. We second include these exogenous shocks in country-specific structural VAR, in which we control for credit demand. The main result is that only the pass-through from the ECB rate to interest rates has been effective. Unconventional policies have had uneven effects and primarily on interest rates.
Journal: Applied Economics
Pages: 4477-4501
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158923
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158923
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Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4477-4501
Template-Type: ReDIF-Article 1.0
Author-Name: Hana Mohelska
Author-X-Name-First: Hana
Author-X-Name-Last: Mohelska
Author-Name: Marcela Sokolova
Author-X-Name-First: Marcela
Author-X-Name-Last: Sokolova
Title: Smart, connected products change a company’s business strategy orientation
Abstract:
Smart, connected products have the potential to shift rivalries, opening up numerous new avenues for differentiation and value-added services. New entrants in a smart, connected world face significant new obstacles, starting with the high fixed costs of a more complex product design, embedded technology and multiple layers of new IT infrastructure. As smart, connected products expand an industry’s scope and the boundaries of competition, many companies will need to rethink their corporate purpose. As products continue to communicate and collaborate in networks, which are continuously expanding both in number and diversity, many companies will have to re-examine their core mission and value proposition. The authors present an analysis of changes that were initiated by applying new of smart and connected product technologies during creative discussions about disruptive innovation development. The objective of the article is to seek answers to the following research questions: Q 1: What is the role and significance of the new concept of products obtained as a result of substantial innovations? Q 2: How does the new concept of products impact the entrepreneurial strategy of organizations? Q 3: Does this concept trigger a change to the rules of competition?
Journal: Applied Economics
Pages: 4502-4509
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158924
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158924
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Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4502-4509
Template-Type: ReDIF-Article 1.0
Author-Name: Erik Mäkelä
Author-X-Name-First: Erik
Author-X-Name-Last: Mäkelä
Title: The price of the euro: evidence from sovereign debt markets
Abstract:
The objective of this article is to ascertain how the Economic and Monetary Union (EMU) in Europe has affected its members’ long-term government bond yields. In order to estimate the effect, this article utilizes a synthetic control approach. The main finding is that the majority of the member countries did not receive economic gains from the EMU in sovereign debt markets. Synthetic counterfactual analysis finds strong evidence that Austria, Belgium, Finland, France and the Netherlands have paid a positive and substantial euro-premium in their 10-year government bonds since the adoption of the single currency. After the most recent financial crisis, government bond yields have been higher in all member countries compared to the situation that would have occurred without the monetary unification. This article concludes that from the viewpoint of sovereign borrowing, it would be beneficial for a country to maintain its own currency and monetary policy.
Journal: Applied Economics
Pages: 4510-4525
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161714
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161714
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Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4510-4525
Template-Type: ReDIF-Article 1.0
Author-Name: Xun Li
Author-X-Name-First: Xun
Author-X-Name-Last: Li
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Title: Food environment and weight outcomes: a stochastic frontier approach
Abstract:
Food environment includes supermarkets, restaurants, warehouse clubs and supercentres and other food outlets. As such, it can affect weight outcomes through healthy food-access cost and availability, which in turn shape eating styles and habits. This article evaluates the impact of food environment on weight outcomes through a stochastic frontier approach (SFA) that comprehensively includes various components of the food environment. The model is estimated using body mass indexes (BMIs) as the dependent variable and demographics and food environment data from New England counties as explanatory variables. Empirical results indicate that supercentres and limited service restaurants are positively associated with weight gain, while full service restaurants are negatively associated with BMIs. In metropolitan counties, the presence of full and limited service restaurants has a significant impact on BMIs; in non-metropolitan counties, these establishments do not, except in those adjacent to metropolitan areas. Empirical results also validate SFA is a more appropriate specification than the standard linear model. In addition, SFA allows us to rank counties and identify targets for effective policy interventions. An ordered logit model of weight status is estimated with the same explanatory variables, confirming that the directions of the effects of the food environment components are similar.
Journal: Applied Economics
Pages: 4526-4537
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161715
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161715
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Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4526-4537
Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Bai
Author-X-Name-First: Xuelian
Author-X-Name-Last: Bai
Author-Name: Fangjun Wang
Author-X-Name-First: Fangjun
Author-X-Name-Last: Wang
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Title: Analyst coverage and stock return synchronicity: evidence from regulation changes in China’s IPO market
Abstract:
This article investigates the relation between analyst coverage and stock return synchronicity in the IPO market. Using a unique data set in China from 2005 to 2012, we find a significantly different effect of analyst coverage on synchronicity before and after the implementation of important 2009 IPO regulation changes in China. Specifically, we document that analyst coverage reduces synchronicity but that this effect is significant only after 2009. In addition, we extend this research to further distinguish the information production role of underwriter and independent analysts. We find that prior to 2009, underwriter analysts’ coverage decreases synchronicity but independent analysts’ coverage does not. However, in the post-2009 period, both types of analyst coverage are significantly and inversely associated with synchronicity. Overall, our results support analysts’ role as producers of firm-specific information in an emerging IPO market and shows that this role depends on the institutional environment.
Journal: Applied Economics
Pages: 4538-4557
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161716
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161716
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Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4538-4557
Template-Type: ReDIF-Article 1.0
Author-Name: Seung-Whan Choi
Author-X-Name-First: Seung-Whan
Author-X-Name-Last: Choi
Author-Name: Patrick James
Author-X-Name-First: Patrick
Author-X-Name-Last: James
Author-Name: Yitan Li
Author-X-Name-First: Yitan
Author-X-Name-Last: Li
Author-Name: Eric Olson
Author-X-Name-First: Eric
Author-X-Name-Last: Olson
Title: Presidential approval and macroeconomic conditions: evidence from a nonlinear model
Abstract:
Contrary to previous empirical studies that find a linear link between economic conditions and presidential approval, this study argues for and finds a nonlinear relationship. A threshold regression is used to assess potential nonlinear relationships between macroeconomic variables and presidential popularity. A quarterly data analysis for the 1960Q1–2012Q2 time period reveals that domestic factors prevail in shaping presidential approval. Most compelling is evidence of a threshold relationship involving economic conditions: When unemployment is slightly over 7%, its decline impacts significantly and favourably on presidential approval, an effect that virtually disappears below the threshold value. Change in consumer sentiment affects presidential approval in a limited way, while inflation shows no association at all. These results combine to encourage further investigation of nonlinear processes in the nexus of economics and politics.
Journal: Applied Economics
Pages: 4558-4572
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161718
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161718
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Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4558-4572
Template-Type: ReDIF-Article 1.0
Author-Name: Rochelle Holm
Author-X-Name-First: Rochelle
Author-X-Name-Last: Holm
Author-Name: Wales Singini
Author-X-Name-First: Wales
Author-X-Name-Last: Singini
Author-Name: Simeon Gwayi
Author-X-Name-First: Simeon
Author-X-Name-Last: Gwayi
Title: Comparative evaluation of the cost of water in northern Malawi: from rural water wells to science education
Abstract:
Worldwide, improved sources of drinking water are still lacking for 663 million people. With Malawi as a case study, we aim to address the scarcity of data available to understand the full cost and options of drinking water at a regional level covering both urban and rural areas. We studied options in the northern region of Malawi under the following thematic areas: urban piped water, water wells, handpump spare part supply networks, household point-of-use water treatment, the cost of entering a water business and capacity building in science education. Primary locally sourced data were collected as well as secondary publically available data. Additionally, local markets were surveyed for spare part networks. This research has shown that when looking at water resource economics in northern Malawi, it is not a monopoly and options are available at a range of costs. The data challenge policy-makers to reach the last 10% of the population still lacking improved drinking water. This will require a combination of expansion of urban piped water infrastructure, new boreholes in rural areas, increased handpump functionality rates, scale-up of household drinking water point-of-use treatment and growth of local universities to train local experts within the sector.
Journal: Applied Economics
Pages: 4573-4583
Issue: 47
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161719
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161719
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Handle: RePEc:taf:applec:v:48:y:2016:i:47:p:4573-4583
Template-Type: ReDIF-Article 1.0
Author-Name: R. Alan Bowman
Author-X-Name-First: R. Alan
Author-X-Name-Last: Bowman
Author-Name: James Lambrinos
Author-X-Name-First: James
Author-X-Name-Last: Lambrinos
Author-Name: Thomas Ashman
Author-X-Name-First: Thomas
Author-X-Name-Last: Ashman
Title: Prospective measures of competitive balance application to money lines in the national hockey league
Abstract:
The authors have previously introduced the concept of utilizing point spreads to measure competitive balance in professional sports and a methodology for doing so. They assessed competitive balance in the National Football League and the National Basketball Association. This methodology was extended to measuring competitive balance utilizing money lines in major league baseball. This study starts by applying the same model to the money lines for the 2005–2015 seasons to measure competitive balance in the National Hockey League. It then statistically adjusts the money lines under various scenarios to estimate the effects of overtime rules and shootouts on competitive balance. Similar analyses of overtime effects on competitive balance of other sports are also completed for comparison purposes. The results indicate that competitive balance in the National Hockey League increased rather substantially during this period and that overtime rules and shootouts have had a much larger positive impact on competitive balance in the NHL than overtime approaches have had on the competitive balance of any of the other sports examined.
Journal: Applied Economics
Pages: 4925-4936
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1444262
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444262
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Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4925-4936
Template-Type: ReDIF-Article 1.0
Author-Name: Angela S. Bergantino
Author-X-Name-First: Angela S.
Author-X-Name-Last: Bergantino
Author-Name: Claudia Capozza
Author-X-Name-First: Claudia
Author-X-Name-Last: Capozza
Author-Name: Mauro Capurso
Author-X-Name-First: Mauro
Author-X-Name-Last: Capurso
Title: Pricing strategies: who leads and who follows in the air and rail passenger markets in Italy
Abstract:
In this paper, we aim at empirically uncovering the existence of price leadership in the passenger transport market, whose oligopolistic structure facilitates the strategic interaction among companies, with price being one of the principal elements of competition. The strategic interaction is particularly favoured by the fact that prices are easily observable online by all competitors. The analysis focuses on selected Italian city-pair markets that differ from one another with respect to the degree of inter- and intra-modal competition and to the characteristics of the transport services provided. We exploit this heterogeneity to study transport operators’ strategic interactions in different competitive environments. We find evidence of the existence of price leadership, even though results differ across city-pair markets. In particular, it emerges that the incumbent operator, in either the air or the rail sector, always holds the role of leader.
Journal: Applied Economics
Pages: 4937-4953
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1459039
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1459039
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Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4937-4953
Template-Type: ReDIF-Article 1.0
Author-Name: Leiju Qiu
Author-X-Name-First: Leiju
Author-X-Name-Last: Qiu
Author-Name: Daxuan Zhao
Author-X-Name-First: Daxuan
Author-X-Name-Last: Zhao
Title: Information and housing search: theory and evidence from China market
Abstract:
Asymmetric market information plays a role in households’ housing choice. To study this role, we theoretically and empirically examine the varied behaviours between better-informed and less-informed households in a housing market. The housing search model theoretically predicts that better-informed households are more likely to secure a better deal. With the data from Tianjin in China, hedonic models are calibrated to quantify the impacts of asymmetric information on housing search outcomes. The results show that the less-informed homebuyers need to pay around 1~2.3% more than those better-informed homebuyers after controlling the heterogeneity of housing units, which are consistent with the theoretical predictions. It suggests that policies and institutions to alleviate asymmetric information in housing market could improve the welfare of households.
Journal: Applied Economics
Pages: 4954-4967
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1464644
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1464644
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Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4954-4967
Template-Type: ReDIF-Article 1.0
Author-Name: Youngho Kang
Author-X-Name-First: Youngho
Author-X-Name-Last: Kang
Author-Name: Byung-Yeon Kim
Author-X-Name-First: Byung-Yeon
Author-X-Name-Last: Kim
Title: Immigration and economic growth: do origin and destination matter?
Abstract:
This article assesses the heterogeneous effects of immigration on economic growth depending on both the origin and the destination countries. Following the development of a growth model augmented by human capital of immigrants, we estimate it in a dynamic panel setup using the system-GMM estimator. We find that the growth-enhancing effect of immigration is significantly larger when immigration flows from developed to developing economies than when it does to those that include both developed and developing economies. We interpret these results as evidence of immigrants from developed countries bringing with them their advanced knowledge into the developing countries.
Journal: Applied Economics
Pages: 4968-4984
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1466987
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466987
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Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4968-4984
Template-Type: ReDIF-Article 1.0
Author-Name: Hong Xie
Author-X-Name-First: Hong
Author-X-Name-Last: Xie
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: Investigating stationarity in tourist arrivals to India using panel KPSS with sharp drifts and smooth breaks
Abstract:
In the study, we applied panel-based stationary test that incorporates sharp as well as smooth breaks to investigate the non-stationarity of long-run tourists’ arrivals to India from major tourists’ source countries for the period 1981–2012. Results from the overall panel data provided significant evidence to support the stationarity hypothesis. However, when tourist arrivals from major source countries are considered, results indicate that tourist arrivals in India from the UK, Canada, Australia, Singapore, and Nepal were non-stationary, suggesting that tourists from these countries are all affected by economic conditions with the greatest extent. The results of the study have important policy implication for the tourist authority of India as well as business sectors in the hospitality industry for understanding and predicting market condition.
Journal: Applied Economics
Pages: 4985-4998
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1466988
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466988
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Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4985-4998
Template-Type: ReDIF-Article 1.0
Author-Name: Chunhua Tang
Author-X-Name-First: Chunhua
Author-X-Name-Last: Tang
Author-Name: Honglin Yang
Author-X-Name-First: Honglin
Author-X-Name-Last: Yang
Author-Name: Erbao Cao
Author-X-Name-First: Erbao
Author-X-Name-Last: Cao
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Title: Channel competition and coordination of a dual-channel supply chain with demand and cost disruptions
Abstract:
The impacts of simultaneous disruption of demand and cost on pricing, production and coordination of a dual-channel supply chain with one manufacturer and one retailer are examined. First, coordination of the dual-channel supply chain without disruption is proposed, by using a revenue sharing contract. Furthermore, the effects of simultaneous disruption of demand and cost on pricing, production and profit are examined from the perspective of partners and the whole supply chain. Optimal prices and quantum of production in the event of disruptions occurring are derived. Suitable changes and improvements in revenue sharing contracts can help coordinate the dual-channel supply chain with disruptions. Finally, the proposed models are further analysed through numerical examples.
Journal: Applied Economics
Pages: 4999-5016
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1466989
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466989
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Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:4999-5016
Template-Type: ReDIF-Article 1.0
Author-Name: Rébecca Stekelorum
Author-X-Name-First: Rébecca
Author-X-Name-Last: Stekelorum
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Jamal Elbaz
Author-X-Name-First: Jamal
Author-X-Name-Last: Elbaz
Title: CSR disclosure and sustainable supplier management: a small to medium-sized enterprises perspective
Abstract:
The respective literatures on corporate social responsibility (CSR) disclosure and sustainable supplier management have grown in recent years, but little scholarly attention has been paid to the link between the two. Within a framework that incorporates legitimacy and neo-institutional theories, this study investigates how CSR disclosure in small to medium-sized enterprises (SMEs) influences CSR requirements and capacity building with suppliers. Based on an empirical data set of 146 000 SMEs, we test our hypotheses using multiple mediation analysis. Our results indicate that SME CSR disclosure has a positive direct effect on capacity building. When the mediating role of CSR requirements is taken into account, the study reveals that the more SMEs disclose their CSR activities, the more they require CSR from their suppliers, which in turn leads to an increase in capacity building with them. The study also suggests that the SMEs that limit their CSR requirements to the application step are more likely to build capacity with their suppliers than the SMEs that impose CSR verification. Overall, this article provides unique insights for practitioners seeking to determine the circumstances in which the SME practices of sustainable supplier management unfold in practice.
Journal: Applied Economics
Pages: 5017-5030
Issue: 46
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1466990
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466990
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Handle: RePEc:taf:applec:v:50:y:2018:i:46:p:5017-5030
Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Duarte
Author-X-Name-First: Rosa
Author-X-Name-Last: Duarte
Author-Name: Alfredo J. Mainar-Causapé
Author-X-Name-First: Alfredo J.
Author-X-Name-Last: Mainar-Causapé
Author-Name: Julio Sánchez Chóliz
Author-X-Name-First: Julio
Author-X-Name-Last: Sánchez Chóliz
Title: Domestic GHG emissions and the responsibility of households in Spain: looking for regional differences
Abstract:
The aim of this article is to analyze the responsibilities of Spanish households, as final consumers, for the generation of domestic greenhouse gases emissions (GHG), by region of residence, distinguishing between NUTS 1 and NUTS 2 (autonomous regions). The motivation is the process of convergence experimented by Spanish regions based on the strong economic growth experienced by the country until 2008, which could results in different emissions responsibilities because of different lifestyles and production structures. We examine in depth the relationships between a representative household in each region and its patterns of consumption. Although we do find a relationship between per capita income and regional responsibility for pollution generation, it is based on a demand scale effect, which overlaps the effects of the regional consumption patterns. Thus, in the richest regions (Madrid, Northeast, East), despite their having a less polluting pattern than other regions, the level of per capita embodied emissions is higher, due to their higher level of consumption. This scale effect, and the linkages between regional responsibilities for emissions and household consumption patterns are analyzed using linear models based on Social Accounting Matrices. The basis of the estimations is the regional emission intensity (average emission per euro spent by each type of regional home).
Journal: Applied Economics
Pages: 5397-5411
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307933
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307933
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Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5397-5411
Template-Type: ReDIF-Article 1.0
Author-Name: Lu Fang
Author-X-Name-First: Lu
Author-X-Name-Last: Fang
Author-Name: David A. Bessler
Author-X-Name-First: David A.
Author-X-Name-Last: Bessler
Title: Stock returns and interest rates in China: the prequential approach
Abstract:
This article aims to study whether interest rates help to forecast stock returns in China using the prequential approach. A bivariate VAR model and a univariate autoregressive model are examined. Out-of-sample probability forecasts, generated based on both a bootstrap-like simulation method and a nonparametric kernel-based simulation method, are evaluated from both calibration (reliability) and sorting (resolution) perspectives. The results from calibration test indicate that including interest rates in the model improves the model’s ability to issue realistic probability forecasts of stock returns (be well-calibrated). Considering stock returns also enhances the prediction of interest rates with respect to calibration. Assessment through Brier score and Yates partition suggests that the model performs better in distinguishing stock returns that actually occur and stock returns that do not occur after incorporating the influence of interest rates. Overall, interest rates help in forecasting stock returns in China in terms of both calibration and sorting.
Journal: Applied Economics
Pages: 5412-5425
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307934
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307934
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Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5412-5425
Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Luis Antonio Monteros
Author-X-Name-First: Luis Antonio
Author-X-Name-Last: Monteros
Title: Dynamic conditional score models of degrees of freedom: filtering with score-driven heavy tails
Abstract:
This article extends the quasi-autoregressive (QAR) plus Beta-t-EGARCH (exponential generalized autoregressive conditional heteroscedasticity) dynamic conditional score (DCS) model. For the new DCS model, the degrees of freedom parameter is time varying and tail thickness of the error term is updated by the conditional score. We compare the performance of QAR plus Beta-t-EGARCH with constant degrees of freedom (benchmark model) and QAR plus Beta-t-EGARCH with time-varying degrees of freedom (extended model). We use data from the Standard and Poor’s 500 (S&P 500) index, and a random sample of its 150 components that are from different industries of the United States (US) economy. For the S&P 500, all likelihood-based model selection criteria support the extended model, which identifies extreme events with significant impact on the US stock market. We find that for 59% of the 150 firms, the extended model has a superior statistical performance. The results suggest that the extended model is superior for those industries, which produce products that people usually are unwilling to cut out of their budgets, regardless of their financial situation. We perform an application to compare the density forecast performance of both DCS models. We perform an application to Monte Carlo value-at-risk for both DCS models.
Journal: Applied Economics
Pages: 5426-5440
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307935
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307935
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Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5426-5440
Template-Type: ReDIF-Article 1.0
Author-Name: Xiangling Liu
Author-X-Name-First: Xiangling
Author-X-Name-Last: Liu
Author-Name: Glenn Otto
Author-X-Name-First: Glenn
Author-X-Name-Last: Otto
Title: Housing supply elasticity in local government areas of Sydney
Abstract:
We report supply elasticity estimates of residential property (houses and apartments) for local government areas (LGAs) in metropolitan Sydney. Using annual data for 1991–2012, the average supply elasticity estimate across all LGAs is 0.2 for houses and 0.8 for apartments. The supply of houses is inelastic in all 43 LGAs; in contrast, apartment supply is elastic – greater than unity – in about one-third of LGAs. We develop theoretical and empirical models to explain the cross-section variation in supply elasticity across LGAs. For houses, supply elasticity is negatively related to an LGA’s population density, the time taken by a local council to process a development application and to different measures of the amount of land in an LGA that is unavailable for new housing development. In contrast to houses, variation in supply elasticity for apartments across LGAs is unrelated to any of the available regressors.
Journal: Applied Economics
Pages: 5441-5461
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307936
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307936
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Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5441-5461
Template-Type: ReDIF-Article 1.0
Author-Name: Nazım Ekren
Author-X-Name-First: Nazım
Author-X-Name-Last: Ekren
Author-Name: Elçin Aykaç Alp
Author-X-Name-First: Elçin
Author-X-Name-Last: Aykaç Alp
Author-Name: Mete Han Yağmur
Author-X-Name-First: Mete Han
Author-X-Name-Last: Yağmur
Title: Macroeconomic performance index: a new approach to calculation of economic wellbeing
Abstract:
Since the rise of the global financial crisis, there has been revival of interest in performance indexes that measure the overall stance of the economy and the wellbeing of households. Such indexes typically consist of inflation, growth, employment and long-term interest rates. We develop such an index by appending exchange rate and weighting each variable by the inverse of its variance in order to prevent the more volatile variable to dominate the index. We call this macroeconomic performance index (MPI) and argue that such an index better explains the overall economic stance especially in emerging economies. We generate the index using data from three emerging economies, namely Turkey, Brazil and Poland. Our analysis indicates that the index has a nonlinear structure and hence we analyse its behaviour using threshold autoregressive (TAR) model. It is observed that MPI captures the economic stance and main economic incidents quite successfully in each subject country. To further see the relevance of the MPI, we run TAR cointegration analysis with consumer confidence indexes (CCIs) for the subject countries with TAR cointegration test. The results indicate long-term relationship between the MPI and CCI in all three countries.
Journal: Applied Economics
Pages: 5462-5476
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1310996
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1310996
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Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5462-5476
Template-Type: ReDIF-Article 1.0
Author-Name: Bernd Hayo
Author-X-Name-First: Bernd
Author-X-Name-Last: Hayo
Author-Name: Matthias Uhl
Author-X-Name-First: Matthias
Author-X-Name-Last: Uhl
Title: Taxation and consumption: evidence from a representative survey of the German population
Abstract:
Using a representative survey of the German population, this article studies self-reported individual consumption responses to a recent exogenous payroll tax reduction. About 55% of the respondents report that they spend the extra money, indicating considerable potential for tax changes to affect consumption and economic activity. Our analysis of the socio-demographic and economic covariates of consumption responses suggests, among other effects, that interest rates are related to consumption responses to tax changes, and that households with higher income have a higher propensity to consume.
Journal: Applied Economics
Pages: 5477-5490
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1310997
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1310997
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Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5477-5490
Template-Type: ReDIF-Article 1.0
Author-Name: Arif Billah Dar
Author-X-Name-First: Arif Billah
Author-X-Name-Last: Dar
Author-Name: Debasish Maitra
Author-X-Name-First: Debasish
Author-X-Name-Last: Maitra
Title: Is gold a weak or strong hedge and safe haven against stocks? Robust evidences from three major gold-consuming countries
Abstract:
In this article, we test nexus between gold and stocks for the three major gold consumers by using the range of methodologies. First, we assess if there is any time-varying correlation between the two assets. We fail to find any significant time-varying correlation between gold and stock returns in India and the United States. Second, we attempted to investigate the safe-haven property of gold by analysing the decile-wise conditional correlation between stock returns and gold returns at different deciles of stock returns. Third, in order to test the robustness of the results drawn from the decile-wise correlation, we employ wavelet coherence in continuous wavelet framework to test the time and frequency varying nexus between the pair of assets. The range of methodologies employed seems to indicate the weak hedge and safe haven-property of gold for stocks.
Journal: Applied Economics
Pages: 5491-5503
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1310998
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1310998
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Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:5491-5503
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: i-i
Issue: 53
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1347382
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1347382
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Handle: RePEc:taf:applec:v:49:y:2017:i:53:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: 3230-3230
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1417960
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1417960
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Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3230-3230
Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Lopes Afonso
Author-X-Name-First: Tiago Lopes
Author-X-Name-Last: Afonso
Author-Name: António Cardoso Marques
Author-X-Name-First: António Cardoso
Author-X-Name-Last: Marques
Author-Name: José Alberto Fuinhas
Author-X-Name-First: José Alberto
Author-X-Name-Last: Fuinhas
Author-Name: e Marco Mano Saldanha
Author-X-Name-First: e Marco Mano
Author-X-Name-Last: Saldanha
Title: Interactions between electricity generation sources and economic activity in two Nord Pool systems. Evidence from Estonia and Sweden
Abstract:
The interactions between electricity sources and industrial production in Estonia and Sweden are analysed based on monthly data. The availability of data defines the time spans from January 2010 to September 2015 for Sweden and from April 2010 to December 2014 for Estonia. These countries are particularly interesting to study because of their dissimilar generation mix. Estonia’s generation mix is based on oil shale, while Sweden’s is based on nuclear plants and hydroelectricity. In short, both countries’ energy mixes are based on endogenous natural resources. The ARDL model was applied, allowing the long-run and short-run effects to be captured. The results prove that economic growth is sustained by natural endogenous resources. Estonia should continue to improve the usage of renewable energies, using fossil sources in support, in order to reduce emissions and to meet international environmental commitments. Sweden should promote the efficient usage of various renewable sources.
Journal: Applied Economics
Pages: 3115-3127
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418074
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418074
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Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3115-3127
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Pierre Allegret
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Allegret
Author-Name: Audrey Allegret
Author-X-Name-First: Audrey
Author-X-Name-Last: Allegret
Title: The role of international reserves holding in buffering external shocks
Abstract:
An extended literature analyses the accumulation foreign exchange holding observed in many developing and emerging countries since the 2000s. Empirical studies on the self-insurance motive suggest that high-reserves economies are more resilient to financial crises and to international capital inflows volatility. They show also that pre-crisis foreign reserve accumulation explains post-crisis growth. However, some papers suggest that the relationship between international reserves holding and reduced vulnerability is nonlinear, meaning that reserve holding is subject to diminishing returns. This article devotes more attention to the potential nonlinear relationship between the foreign reserves holding and macroeconomic resilience to shocks. For a sample of nine emerging economies, we assess to what extent the accumulation of international reserves allows to mitigate negative impacts of external shocks on the output gap. While a major part of the literature focuses on the global financial crisis, we investigate this question by considering two sub-periods: 1995–2003 and 2004–2013. We implement threshold VAR model in which the structure is allow to change if the threshold variable crosses a certain estimated threshold. We find that the effectiveness of reserve holding to improve the resilience of domestic economies to shocks has increased over time. Hence, the diminishing returns of foreign reserve holding stressed in the previous literature must be qualified.
Journal: Applied Economics
Pages: 3128-3147
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418075
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418075
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Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3128-3147
Template-Type: ReDIF-Article 1.0
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Laura Sauci
Author-X-Name-First: Laura
Author-X-Name-Last: Sauci
Title: Long memory and mean reversion in real exchange rates in Latin America
Abstract:
This article examines the long-run Purchasing Power Parity (PPP) hypothesis for 12 Latin American Real Effective Exchange Rates (REERs) using fractional integration techniques. The empirical results, applying parametric approaches, provide evidence of mean reversion in the REERs in the cases of Nicaragua, Belize, Costa Rica, Guyana and Paraguay and lack of it for the remaining seven countries. Employing semiparametric methods, the evidence of mean reversion covers the following countries: Belize, the Dominican Republic, Ecuador and Mexico. Thus, only for Belize and Guyana do we obtain consistent evidence of mean reversion in the real exchange rates. At the other extreme, lack of mean reversion, and thus, lack of PPP, is obtained with both methods in Bolivia, Brazil, Colombia and Venezuela. For the remaining six countries, the results are ambiguous. The results for the PPP theory in Belize and Guyana may show the importance of promoting policies based on exchange rate flexibility and economic liberalization to reach a long-run stability scenario that leads to greater international competitiveness and lower external vulnerability.
Journal: Applied Economics
Pages: 3148-3155
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418076
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418076
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Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3148-3155
Template-Type: ReDIF-Article 1.0
Author-Name: Hui Shi
Author-X-Name-First: Hui
Author-X-Name-Last: Shi
Author-Name: Chuhui Li
Author-X-Name-First: Chuhui
Author-X-Name-Last: Li
Title: Does weight status affect academic performance? Evidence from Australian children
Abstract:
This article investigates the impact of children’s weight status on their academic performance using the Longitudinal Survey of Australian Children. Considering the endogeneity of the weight status variable (obesity or overweight), to obtain consistent estimates of its impact, we use the body mass index of biological parents as instrumental variables. The two-stage least square estimation shows that obesity or overweight has a significant negative impact on academic performance. Furthermore, the effect of child weight status is different across grade levels. Overweight has a larger negative impact on academic performance for senior year students, especially on numeracy.
Journal: Applied Economics
Pages: 3156-3170
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418077
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418077
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Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3156-3170
Template-Type: ReDIF-Article 1.0
Author-Name: Su Chi-Wei
Author-X-Name-First: Su
Author-X-Name-Last: Chi-Wei
Author-Name: Xiao-Cui Yin
Author-X-Name-First: Xiao-Cui
Author-X-Name-Last: Yin
Author-Name: Ran Tao
Author-X-Name-First: Ran
Author-X-Name-Last: Tao
Author-Name: Haigang Zhou
Author-X-Name-First: Haigang
Author-X-Name-Last: Zhou
Title: Are housing prices improving GDP or vice versa? A cross-regional study of China
Abstract:
This study applies the bootstrap panel Granger causality test to examine the relationship between housing prices (HPs) and GDP across provinces in China. Empirical results show that HPs Granger cause GDP in the eastern region and in most provinces of the central region. Rapid industrialization and urbanization in the eastern region and the low-cost advantages of the central region promote housing investment and significantly affect GDP. However, GDP has no influence on HPs in the eastern region due to insufficient land supply, housing speculation and HPs deviating from the economic fundamentals. HPs do not Granger cause GDP in the western region because it is less attractive for housing investment. Also, GDP Granger causes HPs in the central and western regions that the economy can influence HPs. These findings could help the government formulate reasonable regional policies for the development of the housing market and economic growth.
Journal: Applied Economics
Pages: 3171-3184
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418078
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418078
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Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3171-3184
Template-Type: ReDIF-Article 1.0
Author-Name: Cheng Cheng
Author-X-Name-First: Cheng
Author-X-Name-Last: Cheng
Title: Greek membership and academic performance: evidence from student-level data
Abstract:
Compared to other inputs of the ‘education production function’, less is known about the effect of social and non-classroom choices. This study examines whether joining fraternities and sororities improves academic performance. In order to account for the self-selection bias of Greek membership, I exploit plausibly exogenous cross-class variation in Greek student composition at the course-instructor level. My estimate shows that a 10 percentage point increase in Greek student composition translates to a 0.02 standard deviation increase in course grade for Greek students relative to non-Greek students. I further find that this effect is driven largely by low-achieving and middle-achieving white Greek members.
Journal: Applied Economics
Pages: 3185-3195
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418079
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418079
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Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3185-3195
Template-Type: ReDIF-Article 1.0
Author-Name: Yang Hu
Author-X-Name-First: Yang
Author-X-Name-Last: Hu
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Title: Bubbles in US regional house prices: evidence from house price–income ratios at the State level
Abstract:
We investigate the presence of bubbles in the US house price-income ratio at the State level by applying the recent time series-based econometric test to data from January 1975 to December 2014. We find evidence of bubbles in several States in the 1980s (i.e. California, Hawaii, Massachusetts, New York, etc.), which coincides with some existing studies that investigate housing bubbles or booms and busts using a range of alternative approaches. Our results show the existence of a housing bubble that originates in the early 2000s and collapses in the mid-2000s in more than 20 States and the District of Columbia concluding that the bubbles of the 2000s were more widespread than the 1980s, which is of special interest and importance. Our results seem to be in agreement with the talk given by Alan Greenspan in 2005, who suggest no sign of a nationwide housing bubble but a lot of local bubbles. We also study the importance of the regression model specification with/without an intercept and the regression model with an intercept could lead to false-positive identification of bubbles.
Journal: Applied Economics
Pages: 3196-3229
Issue: 29
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418080
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418080
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Handle: RePEc:taf:applec:v:50:y:2018:i:29:p:3196-3229
Template-Type: ReDIF-Article 1.0
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Huy N. A. Pham
Author-X-Name-First: Huy N. A.
Author-X-Name-Last: Pham
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: The sectoral effects of Brexit on the British economy: early evidence from the reaction of the stock market
Abstract:
We investigate the impact of the outcome of the EU referendum (Brexit) on various sectors of the British economy over the period June–July 2016. Using the event study methodology, we assess the effects of Brexit, relative to what had been anticipated, as measured by abnormal returns (ARs). The results show that the banking and travel and leisure sectors were affected negatively, with a cumulative AR of −15.37% for the banking sector. We observe that Brexit has a mixed effect on ARs with apparent sector-by-sector differences.
Journal: Applied Economics
Pages: 2508-2514
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1240352
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240352
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Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2508-2514
Template-Type: ReDIF-Article 1.0
Author-Name: Raquel Fonseca
Author-X-Name-First: Raquel
Author-X-Name-Last: Fonseca
Author-Name: Natalia Utrero
Author-X-Name-First: Natalia
Author-X-Name-Last: Utrero
Title: Financial markets and firm size: The role of employment protection laws and barriers to entrepreneurship
Abstract:
This article provides evidence on the institutional determinants of firm size for the period 1980–1998. Using a comprehensive longitudinal database across 29 industrial sectors in 15 Organisation for Economic Co-operation and Development (OECD) countries, we study how labour regulations and barriers to entrepreneurship (BE) affect industrial organization in the presence of capital market frictions. We show that strict employment protection laws (EPL) and high BE negatively affect firm size in sectors that are more dependent on external funds. Our findings demonstrate that the interaction between market regulations and financial market imperfections help to explain some of the differences in firm structure across countries.
Journal: Applied Economics
Pages: 2515-2531
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243209
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243209
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Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2515-2531
Template-Type: ReDIF-Article 1.0
Author-Name: Madhu S. Mohanty
Author-X-Name-First: Madhu S.
Author-X-Name-Last: Mohanty
Author-Name: Aria Golestani
Author-X-Name-First: Aria
Author-X-Name-Last: Golestani
Title: How is the worker’s weekly hour related to wage over the life cycle? The U.S. evidence
Abstract:
The current study estimates the relationship between weekly hours and weekly wage over the life cycle of a representative sample of workers. Recognizing the endogeneity of these two variables, the study estimates both equations in a simultaneous equations framework and demonstrates that the relationship between weekly hours and weekly wage is not uniform over the worker’s life cycle. These two variables are negatively related when the workers are young and have a positive relationship when they are matured adults. This conclusion remains valid for both men and women. Our robustness check further confirms that workers respond to wage increases differently at different stages of their working career. This has interesting policy implications. Any policy to influence the worker’s hours decision through wage incentive must consider the stage of his/her working career.
Journal: Applied Economics
Pages: 2532-2544
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243210
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243210
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Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2532-2544
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bredemeier
Author-X-Name-First: Christian
Author-X-Name-Last: Bredemeier
Author-Name: Roland Winkler
Author-X-Name-First: Roland
Author-X-Name-Last: Winkler
Title: The employment dynamics of different population groups over the business cycle
Abstract:
We examine differences in employment dynamics across population groups using Bayesian vector autoregressions. We document that groups who are particularly strongly affected by business-cycle fluctuations (males, young people, non-whites, the less educated, and workers in blue-collar occupations) also tend to be affected early in the build-up of a boom or bust. We further identify the drivers of the different cyclicalities across population groups. Supply shocks seem to be most important for the heterogeneous employment fluctuations and particularly for the early effects of recessions and booms on the most affected groups. Dynamics in sectoral activity and in hiring rates can help to understand our findings.
Journal: Applied Economics
Pages: 2545-2562
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243211
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243211
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Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2545-2562
Template-Type: ReDIF-Article 1.0
Author-Name: Dmitri Romanov
Author-X-Name-First: Dmitri
Author-X-Name-Last: Romanov
Author-Name: Aviad Tur-Sinai
Author-X-Name-First: Aviad
Author-X-Name-Last: Tur-Sinai
Author-Name: Galit Eizman
Author-X-Name-First: Galit
Author-X-Name-Last: Eizman
Title: Overeducation, job mobility and earnings mobility among holders of first degrees
Abstract:
Overeducation has been researched extensively for nearly three decades, but some major issues in regard to it are still topics of ongoing debate. By using a panel data, that combines a survey of two cohorts of Israeli first-degree holders and data from administrative sources on jobs and wages, we examine the contribution of job turnover, cognitive abilities and continuing graduate studies to the likelihood of overeducation and wage dynamics. The study produces four main findings. First, rapid job-switching makes a negative contribution to the increase in employee’s wage and there is a negative correlation between two variables – an employee’s tenure and the number of past employers in the years after the completion of degree studies – and the probability of being overeducated. Second, the contribution of the individual’s cognitive abilities and quantitative reasoning skills to the likelihood of becoming overeducated is negative. Third, the wages of overeducated employees are some 11% lower and rise more slowly than the wages of those whose level of schooling corresponds to their jobs; this outcome may be interpreted as indicating that the ‘scars’ of being overeducated tend to be long-lasting. Fourth, the overeducated workers have lower propensity to continue to advanced academic studies.
Journal: Applied Economics
Pages: 2563-2578
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243213
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243213
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Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2563-2578
Template-Type: ReDIF-Article 1.0
Author-Name: Ye Li
Author-X-Name-First: Ye
Author-X-Name-Last: Li
Author-Name: Pierre Perron
Author-X-Name-First: Pierre
Author-X-Name-Last: Perron
Author-Name: Jiawen Xu
Author-X-Name-First: Jiawen
Author-X-Name-Last: Xu
Title: Modelling exchange rate volatility with random level shifts
Abstract:
Recent literature has shown that the volatility of exchange rate returns displays long memory features. It has also been shown that if a short memory process is contaminated by level shifts, the estimate of the long memory parameter tends to be upward biased. In this article, we directly estimate a random level shift model to the logarithm of the absolute returns of five exchange rates series, in order to assess whether random level shifts (RLSs) can explain this long memory property. Our results show that there are few level shifts for the five series, but once they are taken into account the long memory property of the series disappears. We also provide out-of-sample forecasting comparisons, which show that, in most cases, the RLS model outperforms popular models in forecasting volatility. We further support our results using a variety of robustness checks.
Journal: Applied Economics
Pages: 2579-2589
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243214
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243214
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Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2579-2589
Template-Type: ReDIF-Article 1.0
Author-Name: Jian Zhou
Author-X-Name-First: Jian
Author-X-Name-Last: Zhou
Title: Forecasting REIT volatility with high-frequency data: a comparison of alternative methods
Abstract:
Volatility is a crucial input for many financial applications, including asset allocation, risk management and option pricing. Over the last two decades the use of high-frequency data has greatly advanced the research on volatility modelling. This article makes the first attempt in the real estate literature to employ intraday data for volatility forecasting. We examine a wide range of commonly used methods and apply them to several major global REIT markets. Our findings suggest that the group of reduced form methods deliver the most accurate one-step-ahead forecast for daily REIT volatility. They outperform their GARCH-model-based counterparts and two methods using low-frequency data. We also show that exploiting intraday information through GARCH does not necessarily yield incremental precision for forecasting REIT volatility. Our results are relatively robust to the choice of realized measure of volatility and the length of evaluation period.
Journal: Applied Economics
Pages: 2590-2605
Issue: 26
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243215
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243215
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Handle: RePEc:taf:applec:v:49:y:2017:i:26:p:2590-2605
Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: The econometrics of the environmental Kuznets curve: an illustration using Australian CO2 emissions
Abstract:
Four econometric issues associated with the estimation and testing of the environmental Kuznets curve (EKC) are considered: (i) model specification with respect to the order of the polynomial, (ii) model specification with respect to the use of linear or log-linear specifications, (iii) integration and cointegration considerations, and (iv) missing variables and time trends. These issues are examined in reference to Australian data on four measures of CO2 emissions and three measures of per capita income. While evidence is provided for an inverted U-shaped EKC, the results cannot be generalized. It is concluded that without the use of sensitivity analysis, the results are typically fragile.
Journal: Applied Economics
Pages: 4927-4945
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296552
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296552
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Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4927-4945
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio C. Bagliano
Author-X-Name-First: Fabio C.
Author-X-Name-Last: Bagliano
Author-Name: Claudio Morana
Author-X-Name-First: Claudio
Author-X-Name-Last: Morana
Title: It ain’t over till it’s over: A global perspective on the Great Moderation-Great Recession interconnection
Abstract:
A large-scale Factor-Augmented Vector Autoregressive (FAVAR) model of the global economy is used to investigate the determinants of the Great Moderation and the transition to the Great Recession (1986–2010). Beside the global-economy perspective, the model presents the novel feature of a broad range of included financial variables and risk factor measures. The results point to various mechanisms related to the global monetary policy stance (Great Deviation), financial institutions’ risk-taking behaviour (Great Leveraging) and global imbalances (savings glut), determining aggregate fluctuations. Finally, an out-of-sample forecasting exercise provides evidence against the ‘end of the Great Moderation’ view, showing that the timing, though not the dimension of the Great Recession episode (2008–2010), was predictable on the basis of the same macroeconomic mechanisms at work over the two previous decades.
Journal: Applied Economics
Pages: 4946-4969
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296553
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296553
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Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4946-4969
Template-Type: ReDIF-Article 1.0
Author-Name: Seon-Woong Kim
Author-X-Name-First: Seon-Woong
Author-X-Name-Last: Kim
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Title: Forecasting urea prices
Abstract:
Managing urea price risk is a concern of firms in the urea supply chain due to high price volatility and relatively slow transportation. This study develops urea price forecasting models as a way to reduce price risk. The forecasting models are evaluated based on multiple accuracy measures and compared to Fertilizer Week, a commercial forecast. An autoregressive model with exogenous variables (ARX) using a window size of 48 months outperforms the other models. No statistical difference exists between our best model and Fertilizer Week. Encompassing tests show that a combination model using the two models outperforms using Fertilizer Week forecasts alone. A combined model using 66.8% of $$ Fertilzer\, Week $$FertilzerWeek
and 33.2% of the ARX brings about the minimum forecast error.
Journal: Applied Economics
Pages: 4970-4981
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296554
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296554
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Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4970-4981
Template-Type: ReDIF-Article 1.0
Author-Name: Eskil Heinesen
Author-X-Name-First: Eskil
Author-X-Name-Last: Heinesen
Author-Name: Christophe Kolodziejczyk
Author-X-Name-First: Christophe
Author-X-Name-Last: Kolodziejczyk
Author-Name: Jacob Ladenburg
Author-X-Name-First: Jacob
Author-X-Name-Last: Ladenburg
Author-Name: Ingelise Andersen
Author-X-Name-First: Ingelise
Author-X-Name-Last: Andersen
Author-Name: Karsten Thielen
Author-X-Name-First: Karsten
Author-X-Name-Last: Thielen
Title: Return to work after cancer and pre-cancer job dissatisfaction
Abstract:
We investigate the association between pre-cancer job dissatisfaction and return-to-work probability 3 years after a cancer diagnosis. We use a Danish data set combining administrative data and a survey to breast and colon cancer survivors. We find that the return-to-work probability has a negative correlation with pre-cancer job dissatisfaction with mental demands (where the correlation is driven by the high-educated) and with physical demands and the superior (where the correlation is driven by the low-educated). Educational gradients in the probability of returning to work after cancer are not significantly affected by controlling for pre-cancer job dissatisfaction and pre-cancer ability to work.
Journal: Applied Economics
Pages: 4982-4998
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296555
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296555
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Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4982-4998
Template-Type: ReDIF-Article 1.0
Author-Name: Laetitia Lepetit
Author-X-Name-First: Laetitia
Author-X-Name-Last: Lepetit
Author-Name: Celine Meslier
Author-X-Name-First: Celine
Author-X-Name-Last: Meslier
Author-Name: Leo Indra Wardhana
Author-X-Name-First: Leo Indra
Author-X-Name-Last: Wardhana
Title: Reducing agency conflicts through bank dividend payout decisions: the role of opacity and ownership structure
Abstract:
We empirically examine whether banks’ dividend decisions are influenced by their degree of opacity and ownership structure. We find that banks with concentrated ownership structure pay lower dividends when they have high degrees of opacity, in line with the hypothesis that majority shareholders pay lower dividends to extract higher levels of private benefits. We do not observe such expropriation behaviour from managers in widely held banks. Further analysis shows that higher levels of shareholder protection and stronger supervisory regimes help to constrain opportunistic behaviour of majority shareholders. Our findings have critical policy implications for the Basel 3 implementation of restrictions on dividend payouts.
Journal: Applied Economics
Pages: 4999-5026
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296556
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296556
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Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:4999-5026
Template-Type: ReDIF-Article 1.0
Author-Name: Karthik Raju
Author-X-Name-First: Karthik
Author-X-Name-Last: Raju
Author-Name: Saravanan Rangaswamy
Author-X-Name-First: Saravanan
Author-X-Name-Last: Rangaswamy
Title: Forecasting volatility in the Indian equity market using return and range-based models
Abstract:
In this article, we assess the time-varying volatility of the National Stock Exchange in the Indian equity market using unconditional estimators and asymmetric conditional econometric models. The volatility estimate and forecast is computed from the interday return and intraday range-based data of the exchange’s flagship index, CNX NIFTY, for the time period spanning 1 January 2009 through 31 December 2013. These are our findings: First, we determine that the time-varying volatility of the index is asymmetric with qualities of stationarity and leptokurtic distribution. Second, the one-step-ahead volatility forecast derived from the univariate time series parameters through the GJR-GARCH process indicates that the model evaluation criteria of the autoregressive process tends towards range-based models vis-à-vis a return-based model. The validity of this methodology is further analysed with the superior predictive ability test, the outcome of which supports the use of range-based conditional models. Finally, among the evaluated range-based model variants, the model confidence set procedure favours the Yang–Zhang estimator as being better suited to forecast the exchange’s volatility than the ones by Parkinson, Garman–Klass and Rogers–Satchell.
Journal: Applied Economics
Pages: 5027-5039
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299099
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299099
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael R. Strain
Author-X-Name-First: Michael R.
Author-X-Name-Last: Strain
Author-Name: Douglas A. Webber
Author-X-Name-First: Douglas A.
Author-X-Name-Last: Webber
Title: High school experiences, the gender wage gap, and the selection of occupation
Abstract:
Using within-high-school variation and controlling for a measure of cognitive ability, this article finds that high-school leadership experiences explain a significant portion of the residual gender wage gap and selection into management occupations. Our results imply that high-school leadership could build non-cognitive, productive skills that are rewarded years later in the labour market and that explain a portion of the systematic difference in pay between men and women. Alternatively, high-school leadership could be a proxy variable for personality characteristics that differ between men and women and that drive higher pay and becoming a manager. Because high-school leadership experiences are exogenous to direct labour market experiences, our results leave less room for direct labour market discrimination as a driver of the gender wage gap and occupation selection.
Journal: Applied Economics
Pages: 5040-5049
Issue: 49
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299100
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299100
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Handle: RePEc:taf:applec:v:49:y:2017:i:49:p:5040-5049
Template-Type: ReDIF-Article 1.0
Author-Name: Hildegunn Kyvik Nordås
Author-X-Name-First: Hildegunn Kyvik
Author-X-Name-Last: Nordås
Title: What drives trade in services? Lessons from the Nordics
Abstract:
This article makes an empirical assessment of the relative importance of non-actionable institutional and cultural factors and actionable policy measures for services market integration, using the Nordic countries as a case study. The Nordics are an ideal case as they are perceived to be a cluster of similar countries, but they have chosen different relations to the European Union (EU) and the rest of the world. First, comparing actionable and non-actionable determinants of services trade, I find that policy-determined free trade agreements (FTAs) boost services trade by 75% and a single market by an additional 45%, while the accumulated effect of all standard non-actionable shared geographical, institutional and cultural features (sharing a land border, language, colonial past and legal origin) almost triples services trade. Having controlled for all these determinants, intra-Nordic trade in services is more than three times the predicted value. An unexplained Nordic bias of this magnitude indicates that full integration of services markets may rely on deeper institutional and cultural factors.
Journal: Applied Economics
Pages: 3532-3545
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430334
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430334
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Template-Type: ReDIF-Article 1.0
Author-Name: Joseph McCormack
Author-X-Name-First: Joseph
Author-X-Name-Last: McCormack
Author-Name: Yaniv Reingewertz
Author-X-Name-First: Yaniv
Author-X-Name-Last: Reingewertz
Title: Politics, partisanship and the power to veto: does gubernatorial line-item veto power affect state budgets?
Abstract:
How does line-item veto (LIV) power affect a governor’s ability to structure the state budget? Is LIV power only relevant as a partisan tool? Is it still relevant when the state legislature can override the veto? We use a rich disaggregated data set to test the effect of the gubernatorial LIV on state budgets, controlling for political factors such as party affiliation of the governor and legislature, minority status of the governor, and the legislature’s ability to override a LIV. Our results suggest that LIV power has very weak influence, if any, on governors’ ability to influence state budgets.
Journal: Applied Economics
Pages: 3546-3559
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430335
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430335
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Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3546-3559
Template-Type: ReDIF-Article 1.0
Author-Name: Nusrate Aziz
Author-X-Name-First: Nusrate
Author-X-Name-Last: Aziz
Author-Name: Belayet Hossain
Author-X-Name-First: Belayet
Author-X-Name-Last: Hossain
Author-Name: Irfan Mowlah
Author-X-Name-First: Irfan
Author-X-Name-Last: Mowlah
Title: Does the quality of political institutions affect intra-industry trade within trade blocs? The ASEAN perspective
Abstract:
There has been a renewed resolve for deeper integration and cooperation within ASEAN. Intra-industry trade (IIT) is often viewed as a way of achieving economic as well as political integration. This article tests for the effect that political regime and governance may have on the intensity of IIT. We particularly examine if quality of political institutions which includes corruption and democracy indices as well as economic factors comprising corporate tax rate, regional FDI flow, flexibility of exchange rate regime, size of the market, economic distance affect the intensity of horizontal and vertical IIT. The study finds that control of corruption and good governance both increase the vertical IIT but not the horizontal IIT. The study further finds that intra-economy FDI flow, stable exchange rate regime, market size and proximity positively affect IIT within the trade bloc. However the negative effect of corporate tax rate suggests that if countries were to coordinate their tax policies, they could avoid harmful tax competition and promote IIT across their borders. The findings regarding the effect those economic and political factors have on the intensity of IIT certainly warrants the attention of policy makers and researchers alike.
Journal: Applied Economics
Pages: 3560-3574
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430336
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430336
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Template-Type: ReDIF-Article 1.0
Author-Name: Roger White
Author-X-Name-First: Roger
Author-X-Name-Last: White
Author-Name: David Buehler
Author-X-Name-First: David
Author-X-Name-Last: Buehler
Title: A closer look at the determinants of international migration: decomposing cultural distance
Abstract:
Using a modified gravity model and three measures of cultural distance, we employ the zero-inflated negative binomial estimation technique to examine the impact of cultural distance on international migration flows. We confirm the finding of prior studies that there exists a negative relationship between composite measures of cultural distance and immigrant flows. Extending the literature, we decompose our composite cultural distance measures into their component dimensions to examine potential variability in the influences of individual dimensions on international migration. We find the cultural dimensions that reflect individualism, uncertainty avoidance, and perceived gender roles are typically more influential in determining immigrant flows than are other cultural dimensions.
Journal: Applied Economics
Pages: 3575-3595
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430337
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430337
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Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3575-3595
Template-Type: ReDIF-Article 1.0
Author-Name: Jian-qing Zhang
Author-X-Name-First: Jian-qing
Author-X-Name-Last: Zhang
Author-Name: Tingting Chen
Author-X-Name-First: Tingting
Author-X-Name-Last: Chen
Author-Name: Fei Fan
Author-X-Name-First: Fei
Author-X-Name-Last: Fan
Author-Name: Song Wang
Author-X-Name-First: Song
Author-X-Name-Last: Wang
Title: Empirical research on time-varying characteristics and efficiency of the Chinese economy and monetary policy: evidence from the MI-TVP-VAR model
Abstract:
Based on the general time-varying parameter vector autoregressive model and data mining technology, this study proposes a new extension mixed innovation time-varying parameter stochastic volatility vector autoregressive model and investigates time-varying characteristics and efficiencies of different shock effects on China’s monetary policy towards inflation and GDP. Using sample monthly data for 1979–2014, we utilize typical time points to illustrate the mechanisms between different economic variables via the Markov Chain Monte Carlo method and impulse response function. The empirical results show that the monetary transmission mechanism in China can be effective in the real economy, but with delay and efficiency leakage. The average delay and maximum efficiency can be measured through the MI model, which can capture accurate information of economic variables, effectively improving the precision of macroeconomic regulation and control. Meanwhile, the difference between the impacts of different channels is obvious; while the impact of interest rates is not significant, the impact of stock market is significant. The action mechanism between GDP and the inflation rate undergoes a gradual structural change, evidently displaying time-varying characteristics and a gradually weakening impact over time.
Journal: Applied Economics
Pages: 3596-3613
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430338
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430338
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Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3596-3613
Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Gunter
Author-X-Name-First: Ulrich
Author-X-Name-Last: Gunter
Author-Name: M. Graziano Ceddia
Author-X-Name-First: M. Graziano
Author-X-Name-Last: Ceddia
Author-Name: David Leonard
Author-X-Name-First: David
Author-X-Name-Last: Leonard
Author-Name: Bernhard Tröster
Author-X-Name-First: Bernhard
Author-X-Name-Last: Tröster
Title: Contribution of international ecotourism to comprehensive economic development and convergence in the Central American and Caribbean region
Abstract:
Drawing on the positive experience from Costa Rica, the study examines whether international ecotourism makes a significant contribution to comprehensive economic development for the Central American and Caribbean region and contributes to comprehensive economic convergence. Following a standard empirical growth model, a dynamic panel regression model is estimated using time-series data from 1995 until 2012 for a cross section of seven countries. The interaction of international tourism and various established sustainability indicators is employed allowing ecotourism to be consistently quantified across countries, while numerous country-specific structural characteristics are controlled for. The estimation results show that international ecotourism has a statistically significant positive effect on both traditional economic development (real GDP per capita) and comprehensive economic development (adjusted net savings; ANS per capita), which is a measure of a society’s potential future well-being, thus providing evidence in support of the tourism-led growth hypothesis and pointing towards an important role for ecotourism in driving comprehensive economic convergence.
Journal: Applied Economics
Pages: 3614-3629
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430339
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430339
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Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3614-3629
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Francesco Salustri
Author-X-Name-First: Francesco
Author-X-Name-Last: Salustri
Author-Name: Vittorio Pelligra
Author-X-Name-First: Vittorio
Author-X-Name-Last: Pelligra
Author-Name: Alejandra Vásquez
Author-X-Name-First: Alejandra
Author-X-Name-Last: Vásquez
Title: Gender differences in socially responsible consumption. An experimental investigation
Abstract:
We report on a simple experimental study designed to investigate the different gender attitudes towards socially responsible consumption. We use the Vote-with-the-Wallet Game, (VWG), a version of a repeated multiplayer prisoner’s dilemma that mimics the characteristics of the choice between a conventional and a socially responsible product. More precisely we test the effect of three factors: two different frames and an ex-post redistribution mechanism that transfers resources from purely self-interested consumers to responsible ones. We find that women remain significantly more cooperative (choosing more often the responsible good) when the redistribution mechanism is interrupted and are significantly less satisfied about the behaviour of the other players in that treatment.
Journal: Applied Economics
Pages: 3630-3643
Issue: 33
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430341
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430341
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Handle: RePEc:taf:applec:v:50:y:2018:i:33:p:3630-3643
Template-Type: ReDIF-Article 1.0
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Furkan Emirmahmutoglu
Author-X-Name-First: Furkan
Author-X-Name-Last: Emirmahmutoglu
Author-Name: Mubariz Hasanov
Author-X-Name-First: Mubariz
Author-X-Name-Last: Hasanov
Title: Structural break, nonlinearity and asymmetry: a re-examination of PPP proposition
Abstract:
In this study, we examine the validity of the PPP proposition for 28 European countries. For this purpose, we propose a new unit root test procedure that allows for both gradual structural breaks and asymmetric nonlinear adjustment towards the equilibrium level. Small-sample properties of the new tests are examined through Monte-Carlo simulations. The simulation results suggest that the new tests have satisfactory size and power properties. We then apply these new tests along with other unit root tests to examine stationarity properties of real exchange rate series of the sample countries. Our tests reject the null of unit root in more cases when compared to alternative tests. Overall, we find that the PPP proposition holds in majority of the European countries examined in this article.
Journal: Applied Economics
Pages: 1289-1308
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361005
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361005
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Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1289-1308
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Yang
Author-X-Name-First: Juan
Author-X-Name-Last: Yang
Author-Name: Man Gao
Author-X-Name-First: Man
Author-X-Name-Last: Gao
Title: The impact of education expansion on wage inequality
Abstract:
The findings on education expansion and income inequality have important implications for policymakers to implement effective policies to reduce income inequality. This study attempts to explain how education expansion affects income inequality by education distribution and the rate of return to education. We decompose the effect of education expansion on wage gaps into price effect and structure effect. We compare the income inequality from 2002 to 2013 using the Chinese Household Income Project (CHIP) 2002 and CHIP2013 survey data and employ FFL decomposition method. Our findings suggest that income inequality increased in 2013 and that income inequality among the high-income groups increased even more significantly. The structure effect of education expansion on income inequality is negative, when average education increases one year, the income gap between 80th and 20th will decrease 1.2%, in other words, education expansion decreases income inequality by allowing a wide range of individuals to attend college. However, this effect is offset by the price effect, which is positive and much more significant in magnitude. One extra year of average education will increase income gap by 29% which means that the demand for high-skilled labour is increasing faster than the supply and thus lead to the increasing premium for higher education return.
Journal: Applied Economics
Pages: 1309-1323
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361008
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361008
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Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1309-1323
Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Czarnitzki
Author-X-Name-First: Dirk
Author-X-Name-Last: Czarnitzki
Author-Name: Katrin Hussinger
Author-X-Name-First: Katrin
Author-X-Name-Last: Hussinger
Title: Input and output additionality of R&D subsidies
Abstract:
This article analyses the effects of public R&D subsidies on R&D input and output of German firms. We distinguish between the direct impact of subsidies on R&D investment and the indirect effect on innovation output measured by patent applications. We disentangle the productivity of purely privately financed R&D and additional R&D investment induced by the public incentive scheme. For this, a treatment-effect analysis is conducted in a first step. The results are implemented into the estimation of a patent production function in a second step. It turns out that both purely privately financed R&D and publicly induced R&D show a positive effect on patent outcome.
Journal: Applied Economics
Pages: 1324-1341
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361010
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361010
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Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1324-1341
Template-Type: ReDIF-Article 1.0
Author-Name: Yun-Yeong Kim
Author-X-Name-First: Yun-Yeong
Author-X-Name-Last: Kim
Title: Does monetary policy affect the long-run expectations of non-stationary real interest rates?
Abstract:
In this article, we analyse whether the monetary policy affects the long-run expectation of the non-stationary real interest rate. The analysis is conducted through Beveridge–Nelson trend decomposition within a cointegrated vector autoregressive model based on the New Keynesian framework. We suggest an augmented test of the conventional co-integration test on the non-stationarity of the real interest rate, which checks whether the co-integration coefficient of inflation is one and the output gap affects the co-integration equilibrium of the nominal interest rate. We further suggest decomposing the long-run expectation of the non-stationary real interest rate into three trends: the interest rate shock (including the monetary shock), inflation shock and output gap shock. According to empirical analyses using monthly US data after the Korean War, the long-run expectation of the non-stationary real interest rate contains an interest rate shock trend and the impulse of the federal fund target rate induces a significant response of the interest rate shock trend. However, the interest rate shock trend has a very small portion of the long-run expectation of the non-stationary real interest rate, which may explain why the monetary policy was not particularly effective in the economic recovery after the global financial crisis.
Journal: Applied Economics
Pages: 1342-1361
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361012
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361012
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Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1342-1361
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Pierluigi Conzo
Author-X-Name-First: Pierluigi
Author-X-Name-Last: Conzo
Author-Name: Fabio Pisani
Author-X-Name-First: Fabio
Author-X-Name-Last: Pisani
Title: Education and health in Europe
Abstract:
The productive and allocative theories predict that education has positive impact on health: the more educated adopt healthier life styles and use more efficiently health inputs, and this explains why they live longer. We find partial support for these theories with an econometric analysis on a large sample of Europeans aged above 50 documenting a significant and positive correlation among education years, life styles, health outputs and functionalities. We however find confirmation for an anomaly already observed in the United States, namely the more educated are more likely to contract cancer. Our results are robust when controlling for endogeneity and reverse causality in IV estimates with instrumental variables related to quarter of birth and neighbours’ cultural norms.
Journal: Applied Economics
Pages: 1362-1377
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361013
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361013
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Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1362-1377
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: 1412-1412
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1361227
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361227
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Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1412-1412
Template-Type: ReDIF-Article 1.0
Author-Name: Spyridon Stavropoulos
Author-X-Name-First: Spyridon
Author-X-Name-Last: Stavropoulos
Author-Name: Ronald Wall
Author-X-Name-First: Ronald
Author-X-Name-Last: Wall
Author-Name: Yuanze Xu
Author-X-Name-First: Yuanze
Author-X-Name-Last: Xu
Title: Environmental regulations and industrial competitiveness: evidence from China
Abstract:
Economic activities are closely related to real-world environmental issues. Currently, more attention is paid to the association between environmental regulations and industrial competitiveness (IC) because of pressures on economic development and environmental protection. In this study, we identify and explain the association between environmental regulations and IC in China. As the largest developing country in the world, China has the unavoidable responsibility of protecting the environment and promoting global economic development. We analyse the mechanisms behind environmental regulations and industrial competiveness at the provincial level and conclude that the impact of environmental regulations upon IC is not a simple linear one, but a U-shaped relationship. It is argued that the crucial intervention to activate the U-shaped relationship, or Porter’s Hypothesis, is innovation, which can be triggered by stringent regulations and well-designed policies.
Journal: Applied Economics
Pages: 1378-1394
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363858
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363858
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Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1378-1394
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Gausden
Author-X-Name-First: Robert
Author-X-Name-Last: Gausden
Author-Name: Mohammad S. Hasan
Author-X-Name-First: Mohammad S.
Author-X-Name-Last: Hasan
Title: An assessment of the contribution of consumer confidence towards household spending decisions using UK data
Abstract:
The European Commission’s consumer confidence indicator (CCI) is assembled from responses to four questions about individual and general economic prospects which form part of the EU’s Consumer Survey. However, concerns may be raised about whether the four components should be constrained to exerting the same influence in a forecasting model of household consumption. Also, in this context, it would seem to be appropriate to permit a role to other information that is obtained from the EU survey. Consequently, in this article, different regression functions are specified in order to assess whether there is any gain to be achieved in predictive accuracy from adopting a more flexible approach towards using the data from the EU questionnaire. With an emphasis upon parsimony, an econometric analysis is performed in conjunction with UK quarterly data on household consumption expenditure. For two categories of spending, it is discovered that the quality of forecasts benefits from having undertaken disaggregation involving survey data beyond those which contribute towards the calculation of the CCI. Indeed, the respective consumption variables (relating to non-durable goods and durable goods excluding vehicles) are seen to be associated with relatively volatile behaviour over the forecast interval, 2008–2013.
Journal: Applied Economics
Pages: 1395-1411
Issue: 12
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363859
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363859
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Handle: RePEc:taf:applec:v:50:y:2018:i:12:p:1395-1411
Template-Type: ReDIF-Article 1.0
Author-Name: Katsushi Suzuki
Author-X-Name-First: Katsushi
Author-X-Name-Last: Suzuki
Author-Name: Nakako Zushi
Author-X-Name-First: Nakako
Author-X-Name-Last: Zushi
Title: Labour unions and leverage: evidence from firm-level union data
Abstract:
Using firm-level labour union data from Japan, this paper investigates the effect of labour unions on firm leverage. We find that as union coverage increases, both the level of and extent of change in leverage decreases. These relations remain robust when a firm falls into deficit. We also find that firms with higher union coverage have a higher interest coverage ratio. In addition, we find that firms with higher union coverage are less likely to choose issuing debt compared to issuing equity when they face financial distress. Our results imply that significant employee influence enhanced by labour unions increases fixed costs, crowds out the firm’s debt capacity and consequently reduces the firm’s leverage.
Journal: Applied Economics
Pages: 2882-2894
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1683150
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1683150
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Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2882-2894
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Marc Montaud
Author-X-Name-First: Jean-Marc
Author-X-Name-Last: Montaud
Author-Name: Jorge Dávalos
Author-X-Name-First: Jorge
Author-X-Name-Last: Dávalos
Author-Name: Nicolas Pécastaing
Author-X-Name-First: Nicolas
Author-X-Name-Last: Pécastaing
Title: Potential effects of scaling-up infrastructure in Peru: a general equilibrium model-based analysis
Abstract:
This study assesses and compares the potential economic impacts of different investment plans dedicated to filling infrastructure gaps in Peru. Using a national database at the firm level, we start by estimating empirically the positive externalities of Peruvian infrastructure, such as energy, telecommunications, and transportation facilities, on the output of private activities. In the second step, these estimates are introduced in a dynamic computable general equilibrium model used to conduct counterfactual simulations of various investment plans in infrastructure over a 15-year period. These simulations show first to what extent scaling-up infrastructure could be a worthwhile strategy to achieve economic growth in Peru; however, they also show that these benefits depend on the choice of funding schemes related to such public spending.
Journal: Applied Economics
Pages: 2895-2912
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696940
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696940
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Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2895-2912
Template-Type: ReDIF-Article 1.0
Author-Name: Qi Ge
Author-X-Name-First: Qi
Author-X-Name-Last: Ge
Author-Name: Eun Jung Jordan
Author-X-Name-First: Eun Jung
Author-X-Name-Last: Jordan
Author-Name: Myongjin Kim
Author-X-Name-First: Myongjin
Author-X-Name-Last: Kim
Author-Name: Leilei Shen
Author-X-Name-First: Leilei
Author-X-Name-Last: Shen
Title: Returns to job satisfaction in the presence of horizontal mismatch
Abstract:
In this paper, we study the relationship among horizontal mismatch, job satisfaction and wages using data from the 2013 Scientists and Engineers Statistical Data System (SESTAT). Estimates from 2SLS indicate that 1) field-occupation match in the highest degree has a positive effect on job satisfaction and wages; and 2) controlling for field-occupation matches, job satisfaction has a positive but diminishing effect on wages with a large heterogeneity across different age groups. In addition, we also distinguish between job satisfaction arising from benefits and job satisfaction that is productivity enhancing and find both to have a positive but nonlinear effect on wages.
Journal: Applied Economics
Pages: 2913-2930
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696941
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696941
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Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2913-2930
Template-Type: ReDIF-Article 1.0
Author-Name: Mingxi Wang
Author-X-Name-First: Mingxi
Author-X-Name-Last: Wang
Author-Name: Yi Hu
Author-X-Name-First: Yi
Author-X-Name-Last: Hu
Author-Name: Chuangyin Dang
Author-X-Name-First: Chuangyin
Author-X-Name-Last: Dang
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Title: A non-expected utility model and its application in practical auctions
Abstract:
This article presents a non-expected utility decision model which is nonlinear in the winning probabilities. The model not only explicitly expresses bidders’ attitudes to risk, but also addresses their preference over the bidding criteria. To demonstrate how to apply the model in the practical auction design, the first- and second-price auctions with both commission rate and reserve price are examined, respectively. For nonrisk-neutral bidders, the equilibrium bidding strategies are characterized, in which the commission rate has a significant influence on the bidding strategy through the critical valuation. However, the existence of the optimal commission rate is uncertain, but once it exists, it depends on the information rent of the highest or second highest order valuation in terms of the inverse hazard rate. With risk-aversion bidders, the only difference to the optimal reserve price is a constant between the first- and second-price auctions. The revenue comparisons show that the classical Revenue Equivalence Theorem fails in practical auctions with the commission rate. This article extends the application of the decision-making model in the auction design in theory and provides some guidance for the auction house and the seller to make their decisions in reality.
Journal: Applied Economics
Pages: 2931-2944
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696942
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696942
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Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2931-2944
Template-Type: ReDIF-Article 1.0
Author-Name: Chao Liang
Author-X-Name-First: Chao
Author-X-Name-Last: Liang
Author-Name: Yu Wei
Author-X-Name-First: Yu
Author-X-Name-Last: Wei
Author-Name: Xiafei Li
Author-X-Name-First: Xiafei
Author-X-Name-Last: Li
Author-Name: Xuhui Zhang
Author-X-Name-First: Xuhui
Author-X-Name-Last: Zhang
Author-Name: Yifeng Zhang
Author-X-Name-First: Yifeng
Author-X-Name-Last: Zhang
Title: Uncertainty and crude oil market volatility: new evidence
Abstract:
The main goal of this paper is to investigate the predictability of five economic uncertainty indices for oil price volatility in a changing world. We employ the standard predictive regression framework, several model combination approaches, as well as two prevailing model shrinkage methods to evaluate the performances of the uncertainty indices. The empirical results based on simple autoregression models including only one index suggest that global economic policy uncertainty (GEPU) and US equity market volatility (EMV) indices have significant predictive power for crude oil market volatility. In addition, the model combination approaches adopted in this paper can improve slightly the performances of individual autoregressive models. Lastly, the two model shrinkage methods, namely Elastin net and Lasso, outperform other individual AR-type model and combination models in most forecasting cases. Other empirical results based on alternative forecasting methods, estimation window sizes, high/low volatility and economic expansion/recession time periods further make sure the robustness of our major conclusions. The findings in this paper also have several important economic implications for oil investors.
Journal: Applied Economics
Pages: 2945-2959
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696943
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696943
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Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2945-2959
Template-Type: ReDIF-Article 1.0
Author-Name: Mariusz Jarmuzek
Author-X-Name-First: Mariusz
Author-X-Name-Last: Jarmuzek
Author-Name: Tonny Lybek
Author-X-Name-First: Tonny
Author-X-Name-Last: Lybek
Title: Can good governance lower bank intermediation costs?
Abstract:
This paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation. Our sample covers 100 high-, middle- and low-income countries during 1996 to 2015. Using panel regressions accounting for endogeneity and cross-sectional dependance, we find that net interest margins of banks are lower if various governance indicators are better. Governance indicators range from comprehensive indices on the rule of law to more narrow indicators like ethics of private firms. The global financial crisis seems not to have had a strong impact except via credit risk. Finally, we estimate that potential annual savings from lower net interest margins could average almost 0,3 percent of GDP, had the governance indicators been at the top decile. These simulations lend credence to the intuition that better governance practices should reduce costs, risks and uncertainty.
Journal: Applied Economics
Pages: 2960-2976
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1697421
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1697421
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Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2960-2976
Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Kamrul Hassan
Author-X-Name-First: Kamrul
Author-X-Name-Last: Hassan
Author-Name: Sanzidur Rahman
Author-X-Name-First: Sanzidur
Author-X-Name-Last: Rahman
Title: Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh
Abstract:
This study aims to investigate dynamic relationships between research and development (R&D) expenditure, climate change (measured by annual rainfall and temperature variations), human capital (proxied by literacy) and total factor productivity (TFP) growth in Bangladesh agriculture. Pesaran’s Pooled Mean Group (PMG) estimator is used to a unique panel data of 17 regions of Bangladesh covering a 61-year period (1948–2008). In addition, the panel vector autoregression (PVAR) model is also applied to trace the responsiveness of TFP from a shock to R&D, extension services, and literacy rate. Results reveal that R&D has an insignificant impact on TFP in the short-run, while it has a significant positive impact in the long-run. The contributions of climate variables (i.e., rainfall and temperature variations) are highly significant and negative in the long run. The literacy rate is found to have a significant positive impact on TFP as expected. These results suggest that agricultural R&D investment and human capital could play an important role to ameliorate the adverse effects of climate change in the agricultural sector of Bangladesh.
Journal: Applied Economics
Pages: 2977-2990
Issue: 27
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1697422
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1697422
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Handle: RePEc:taf:applec:v:52:y:2020:i:27:p:2977-2990
Template-Type: ReDIF-Article 1.0
Author-Name: Julia Paxton
Author-X-Name-First: Julia
Author-X-Name-Last: Paxton
Title: Economics training and hyperbolic discounting: training versus selection effects
Abstract:
This paper contributes to the literature on the effects of economics training on behavior by examining the link between hyperbolic discounting and the number of economics classes taken by a sample of 1310 college graduates at Ohio University. A strong negative correlation is found between economics training and hyperbolic discounting behavior. Regression analysis shows that dynamic consistency is a determinant of taking economics classes. Once the endogeneity of these variables is accounted for, economics training is no longer a statistically significant determinant of hyperbolic discounting. Thus, the selection effect of studying economics outweighs the training effect. Behavioral variables are found to be more important in explaining hyperbolic discounting than demographic variables. The study suggests the importance of controlling for both the selection effect and the training effect for all studies that examine the role of economic training on behavior.
Journal: Applied Economics
Pages: 5891-5899
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1631439
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631439
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Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5891-5899
Template-Type: ReDIF-Article 1.0
Author-Name: Chao Zhou
Author-X-Name-First: Chao
Author-X-Name-Last: Zhou
Title: Effects of corporate governance on the decision to voluntarily disclose corporate social responsibility reports: evidence from China
Abstract:
This article investigates effects of corporate governance on the decision to voluntarily disclose corporate social responsibility (CSR) reports. By using a unique longitude data set of Chinese publicly traded manufacturing firms from 2010 to 2016, this study finds that ownership structure and board characteristics are significantly associated with firms’ decisions to voluntarily disclose CSR reports. In particular, our study finds that state ownership, institutional ownership, managerial ownership and board size are positively and significantly associated with the decision to voluntarily disclose CSR reports. However, board independence is not related to the decision. We also find CEO duality is negatively and significantly related to the decision. Our findings highlight the role of corporate governance in firms’ transparency by influencing the voluntary disclosure of additional information on firms’ CSR activities.
Journal: Applied Economics
Pages: 5900-5910
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1631440
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631440
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Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5900-5910
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Powell
Author-X-Name-First: Robert
Author-X-Name-Last: Powell
Author-Name: Duc H. Vo
Author-X-Name-First: Duc H.
Author-X-Name-Last: Vo
Author-Name: Thach N. Pham
Author-X-Name-First: Thach N.
Author-X-Name-Last: Pham
Title: Cattle as a consistently resilient agricultural commodity
Abstract:
This study compares a range of agricultural commodities over periods of varying economic circumstances. These commodities are examined over three categories, including returns, risk, and contribution to portfolio optimisation. Consistency in these categories is determined over four equal three-year stages which comprise pre-GFC (Global Financial Crisis), GFC, post-GFC and post-post GFC. To demonstrate resilience in the most extreme circumstances, the study uses Conditional Value at Risk (CVaR), which measures extreme risk in the tail of a distribution, as the risk measure and risk-return optimiser. The study thus provides a unique and comprehensive extreme-risk based focus which identifies and ranks the consistency of performance of agricultural commodities over a range of criteria and conditions. Cattle commodities consistently demonstrate the strongest overall performance in the categories examined.
Journal: Applied Economics
Pages: 5911-5922
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1631441
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631441
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Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5911-5922
Template-Type: ReDIF-Article 1.0
Author-Name: Gabor Molnar
Author-X-Name-First: Gabor
Author-X-Name-Last: Molnar
Author-Name: Scott J. Savage
Author-X-Name-First: Scott J.
Author-X-Name-Last: Savage
Author-Name: Douglas C. Sicker
Author-X-Name-First: Douglas C.
Author-X-Name-Last: Sicker
Title: High-speed Internet access and housing values
Abstract:
A hedonic model is estimated that relates house values to high-speed Internet access while controlling for the potential endogeneity of Internet access. Results show that single-family homes with access to a 25 Mbps broadband connection have a price that is about $5,977, or 3%, more than similar homes in neighborhoods with 1 Mbps. The rural premium is lower at $5,099. A cost-benefit exercise on the viability of rural broadband shows that demand will generally not support private investment, but that the revenue gap from upgrading legacy networks could be readily covered by the Universal Service Fund and other public subsidies.
Journal: Applied Economics
Pages: 5923-5936
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1631443
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631443
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Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5923-5936
Template-Type: ReDIF-Article 1.0
Author-Name: Antonia Grohmann
Author-X-Name-First: Antonia
Author-X-Name-Last: Grohmann
Author-Name: Sahra Sakha
Author-X-Name-First: Sahra
Author-X-Name-Last: Sakha
Title: The effect of peer observation on consumption choices: evidence from a lab-in-field experiment
Abstract:
We investigate the impact of peer observation on consumption decisions using a lab-in-field experiment. Respondents make consumption decisions either alone or under peer observation. We find evidence for peer effects. We are able to study these further by looking into the mechanism and performing detailed heterogeneity analysis. Concerning the mechanisms, we find evidence for an information channel. Further, we show that the consumption choice is influenced by how many people made the same decision previously, but not by who those people are, hence finding evidence of a psychological channel. Respondents with higher cognitive ability are less susceptible to peer effects, while people living in small villages are more susceptible.
Journal: Applied Economics
Pages: 5937-5951
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1638499
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638499
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Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5937-5951
Template-Type: ReDIF-Article 1.0
Author-Name: Yingdan Mei
Author-X-Name-First: Yingdan
Author-X-Name-Last: Mei
Author-Name: Li Gao
Author-X-Name-First: Li
Author-X-Name-Last: Gao
Author-Name: Peiyuan Zhang
Author-X-Name-First: Peiyuan
Author-X-Name-Last: Zhang
Title: Residential property price differentials of waste plants: evidence from Beijing, China
Abstract:
As a primary source of urban pollution, waste plants release toxic gases and polluted waste water that can cause great harm to human health and contaminate water resources. The adverse impact of waste plants on environmental threaten the quality of life of surrounding residents which will be reflected in residential property values. In this study, we develop a hedonic price model to estimate the environmental externalities of waste plants based on a panel dataset for real-estate transactions in Beijing from 2011 to 2015. We apply fixed effects and a Heckman selection model to control for omitted variable bias and sample selection bias and then construct price counterfactuals for properties. The price differentials between expected and counterfactual prices are then calculated. Our empirical results suggest that waste plants negatively influence residential property prices. Additionally, the influences of other factors, such as school district, traffic convenience, and average housing area, on property prices are consistent with common sense, though they are weakened for properties within three kilometers of waste plants.
Journal: Applied Economics
Pages: 5952-5960
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1640858
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640858
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Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5952-5960
Template-Type: ReDIF-Article 1.0
Author-Name: Felipe González
Author-X-Name-First: Felipe
Author-X-Name-Last: González
Author-Name: Vicente Valdivieso
Author-X-Name-First: Vicente
Author-X-Name-Last: Valdivieso
Author-Name: Louis De Grange
Author-X-Name-First: Louis
Author-X-Name-Last: De Grange
Author-Name: Rodrigo Troncoso
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Troncoso
Title: Impact of the dedicated infrastructure on bus service quality: an empirical analysis
Abstract:
An econometric analysis is conducted to quantify the impact of different variables on the service quality of the Santiago, Chile bus system. The indicators tested as measures of service quality are the average bus speed, the bus trip time coefficient of variation and the bus headway coefficient of variation. The analysis uses peak hour data obtained for all the routes served by the system’s various concessionaire operators. A separate multiple linear regression model is estimated for each indicator, with the latter as the explained variable. The main explanatory variables are a series of design factors representing different types of dedicated route infrastructure and the incorporation in some routes of segments of urban motorway. The results of the models show that the existence of dedicated bus route infrastructure positively impacts all three service quality indicators. The use of motorway segments in particular has a major positive effect on average speed. The model estimates also reveal that the main explanatory factor in headway variability at the end of a route is the headway variability at the start of it, the latter factor determined by operator management decisions regarding bus despatches.
Journal: Applied Economics
Pages: 5961-5971
Issue: 55
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1644441
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644441
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Handle: RePEc:taf:applec:v:51:y:2019:i:55:p:5961-5971
Template-Type: ReDIF-Article 1.0
Author-Name: Yuta Ogane
Author-X-Name-First: Yuta
Author-X-Name-Last: Ogane
Title: Effects of main bank switching on new business bankruptcy
Abstract:
This paper examines the effects of main bank switching on the probability of bankruptcy of new small businesses using a propensity score matching estimation approach. We use a unique firm-level dataset of approximately 1,000 small and medium-sized enterprises (SMEs) incorporated in Japan; these SMEs are young and unlisted just after incorporation. We find that switching main bank relationships increases the probability of firm bankruptcy. In addition, the result holds only when the relationship between the firm and its main bank is terminated. Specifically, the probability of bankruptcy increases when firms switch their main banks to financial institutions with which they have not previously transacted, and when the ex-post main banks are not affiliated financial institutions of their ex-ante main banks. These results may be because such switching worsens the financial condition of client firms, and thus, it leads to bankruptcy.
Journal: Applied Economics
Pages: 6286-6308
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1616067
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616067
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Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6286-6308
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Filiz
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Filiz
Author-Name: Thomas Nahmer
Author-X-Name-First: Thomas
Author-X-Name-Last: Nahmer
Author-Name: Markus Spiwoks
Author-X-Name-First: Markus
Author-X-Name-Last: Spiwoks
Author-Name: Kilian Bizer
Author-X-Name-First: Kilian
Author-X-Name-Last: Bizer
Title: The accuracy of interest rate forecasts in the Asia-Pacific region: opportunities for portfolio management
Abstract:
We analysed interest rate forecasts from Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. We assessed 532 forecast time series with a total of 85,264 individual interest rate forecasts. To do so, we carried out a comparison to naïve forecasts and investigated the forecast time series for topically orientated trend adjustments. In addition, we deployed the sign accuracy test and the unbiasedness test. The results are very sobering in part: 95.9% of all forecast time series are characterized by the phenomenon of topically orientated trend adjustments, and 99.4% of all forecast time series proved to be biased. Only a small proportion of the forecast time series (3.6%) reflected the future interest rate trend significantly more precisely than a naïve forecast. However, at the same time some of the results of the study are surprisingly positive. The sign accuracy test revealed that 48.3% of all forecast time series predict the interest rate trend significantly better than a random walk forecast.
Journal: Applied Economics
Pages: 6309-6332
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1616073
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616073
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Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6309-6332
Template-Type: ReDIF-Article 1.0
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Jose Arreola-Hernandez
Author-X-Name-First: Jose
Author-X-Name-Last: Arreola-Hernandez
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Author-Name: Stelios Bekiros
Author-X-Name-First: Stelios
Author-X-Name-Last: Bekiros
Title: Spillover across Eurozone credit market sectors and determinants
Abstract:
We examine spillover and its determinants among Eurozone sector level credit markets using time and frequency domain spillover approaches. Based on network theory and connectedness analysis, we identify the sectors that are major transmitters and receivers of spillover during normal and crisis periods. The rolling window analysis shows that short-run spillover among credit market sectors intensifies during global and Eurozone crisis periods. Further, using Bayesian model averaging, we find that overall financial conditions and stock market volatility are the main drivers of total and sector-level spillover. Our findings have important implications for policymakers and investors interested in Euro-area credit risk at the sector level.
Journal: Applied Economics
Pages: 6333-6349
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619014
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619014
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Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6333-6349
Template-Type: ReDIF-Article 1.0
Author-Name: Armanda Cetrulo
Author-X-Name-First: Armanda
Author-X-Name-Last: Cetrulo
Author-Name: Valeria Cirillo
Author-X-Name-First: Valeria
Author-X-Name-Last: Cirillo
Author-Name: Dario Guarascio
Author-X-Name-First: Dario
Author-X-Name-Last: Guarascio
Title: Weaker jobs, weaker innovation. Exploring the effects of temporary employment on new products
Abstract:
This work explores the relationship between temporary employment and product innovation focusing on five major European economies (France, Germany, Italy, Spain and the Netherlands) observed between 1998 and 2012. The analysis distinguishes sectors according to their technological characteristics and regimes finding that industries using temporary employment tend to have a weaker product innovation propensity. The negative correlation between temporary employment and innovation turns out to be stronger in those sectors where tacit firm’s specific knowledge is crucial to the development of innovations. These sectors are identified using both the ‘Cumulativeness’ proxy stemming from Peneder’s classification as well as distinguishing between different Schumpeterian regimes – Schumpeter Mark I vs. II – of knowledge accumulation.
Journal: Applied Economics
Pages: 6350-6375
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619015
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619015
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Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6350-6375
Template-Type: ReDIF-Article 1.0
Author-Name: Maneka Jayasinghe
Author-X-Name-First: Maneka
Author-X-Name-Last: Jayasinghe
Author-Name: Eliyathamby A. Selvanathan
Author-X-Name-First: Eliyathamby A.
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: An intertemporal analysis of expenditure elasticities under three expenditure specifications for Sri Lanka
Abstract:
Household income has been identified as one of the major determinants of demand for household goods. In addition, other household characteristics, such as household size and composition are also found to be important factors that influence household consumption decisions. This study, using four waves (2006/07, 2009/10, 2012/13 and 2016) of Sri Lankan Household Income and Expenditure Survey data, estimates three different specifications (namely, household expenditure, per-capita expenditure and expenditure per equivalent adult) of a complete system of Box-Cox Engel curves to incorporate household size and compositional differences into the model specification. A comparison of elasticity estimates across the three specifications indicates that amongst the three, the best performing model is the one utilizing household expenditure. An intertemporal analysis of expenditure elasticities indicates that although the magnitude of expenditure elasticities has changed, the necessity or luxury classification of household commodities has mostly remained unchanged for the period 2006 − 2016 in Sri Lanka.
Journal: Applied Economics
Pages: 6376-6392
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619020
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619020
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Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6376-6392
Template-Type: ReDIF-Article 1.0
Author-Name: Łukasz Goczek
Author-X-Name-First: Łukasz
Author-X-Name-Last: Goczek
Author-Name: Ivan Skliarov
Author-X-Name-First: Ivan
Author-X-Name-Last: Skliarov
Title: What drives the Bitcoin price? A factor augmented error correction mechanism investigation
Abstract:
This article aims to determine what drives the price of Bitcoin. To achieve this aim, a large set of data is analysed using VEC models augmented by factors representing unobservable economic forces. They have been obtained by means of principal component analysis. This method enables us to contribute to the existing literature on Bitcoin in two ways. First, we employ the dimension reduction technique to combine variables from several papers. Second, we estimate several unobservable economic concepts instead of utilizing proxy variables as is usually done. We find that the main factor driving the Bitcoin price is its popularity. Hence, our result not only confirms some previous findings but reinforces them by providing a better definition of popularity. Finally, we conclude that the Bitcoin price is not affected by supply and demand factors in the way that is natural for conventional currencies.
Journal: Applied Economics
Pages: 6393-6410
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619021
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619021
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Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6393-6410
Template-Type: ReDIF-Article 1.0
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Author-Name: Yupei Zhao
Author-X-Name-First: Yupei
Author-X-Name-Last: Zhao
Author-Name: Minzhi Zhang
Author-X-Name-First: Minzhi
Author-X-Name-Last: Zhang
Author-Name: Chunyan Hu
Author-X-Name-First: Chunyan
Author-X-Name-Last: Hu
Title: Forecasting realized volatility of crude oil futures with equity market uncertainty
Abstract:
This paper examines whether the equity market uncertainty (EMU) index contains incremental information for forecasting the realized volatility of crude oil futures. We use 5-min high-frequency transaction data for WTI crude oil futures and develop six heterogeneous autoregressive (HAR) models based on classical HAR-type models. The empirical results suggest that EMU contains more incremental information than the economic policy uncertainty (EPU) for forecasting the realized volatility of crude oil futures. More importantly, we argue that EMU is a non negligible additional predictive variable that can significantly improve the 1-day ahead predictive accuracy of all six HAR-type models, and improve the 1-week ahead forecasting performance of the HAR-RV, HAR-RV-J, HAR-RSV, HAR-RV-SJ models. These findings highlight a strong short-term and a weak mid-term predictive ability of EMU in the crude oil futures market.
Journal: Applied Economics
Pages: 6411-6427
Issue: 59
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619023
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619023
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Handle: RePEc:taf:applec:v:51:y:2019:i:59:p:6411-6427
Template-Type: ReDIF-Article 1.0
Author-Name: Jingwen Yu
Author-X-Name-First: Jingwen
Author-X-Name-Last: Yu
Author-Name: Yongzhao Lin
Author-X-Name-First: Yongzhao
Author-X-Name-Last: Lin
Author-Name: Cheng Jiang
Author-X-Name-First: Cheng
Author-X-Name-Last: Jiang
Title: Are cadre offspring in the fast lane? Evidence from the labour market for college graduates in China
Abstract:
This paper studies the impact of having a cadre parent on the labour market performance and channels of the intergenerational transference. Using a recent data set, we find that college graduates with a cadre parent earn a wage premium of 4.46% more than those who do not. They also demonstrate advantages in obtaining a household registration (hukou), entering high-level occupations, and achieving job satisfaction. In the discussion on channels, we first show that aggressive self-investment serves as one potential channel but can only explain limited amount of the premiums. To test the other channel – interpersonal network (guanxi), we provide evidence that cadre offspring demonstrate more extensive family network resource and information advantage when searching for jobs. This channel is also supported by the finding that working closer to parents geographically or institutionally would enhance the effect of having a cadre parent.
Journal: Applied Economics
Pages: 3920-3946
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1584375
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584375
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Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3920-3946
Template-Type: ReDIF-Article 1.0
Author-Name: Justin Kurland
Author-X-Name-First: Justin
Author-X-Name-Last: Kurland
Title: Arena-based events and crime: an analysis of hourly robbery data
Abstract:
This article makes use of hourly crime counts to model the relationship between events that take place at the Prudential Center in Newark, NJ and robberies, an arena that has caused local controversy regarding the costs and benefits of hosting such an entertainment venue. Results from the econometric model suggest that the NHL’s New Jersey Devils ice hockey games, concerts, and Disney-themed events are all associated with increases in robbery, while various other event categories such as the NBA basketball games played by the Nets and boxing, and mixed martial arts (MMA) matches are not associated with an increase. These findings support two complementary ecological theories of crime that focus on how events provide additional opportunities for crime by increasing the associated benefits while simultaneously decreasing the cost for economically motivated offenders to take advantage of.
Journal: Applied Economics
Pages: 3947-3957
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1587590
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1587590
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Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3947-3957
Template-Type: ReDIF-Article 1.0
Author-Name: Hyunwoong Pyun
Author-X-Name-First: Hyunwoong
Author-X-Name-Last: Pyun
Author-Name: Joshua C. Hall
Author-X-Name-First: Joshua C.
Author-X-Name-Last: Hall
Title: Does the presence of professional football cause crime in a city? Evidence from Pontiac, Michigan
Abstract:
Using daily panel data from Detroit, we empirically explore the relationship between the National Football League (NFL) and crime in a city. We exploit the natural experiment of the Detroit Lions’ move from Pontiac, Michigan, to downtown Detroit in 2002. Pontiac is used as the treatment city and non-game day crime, other suburban cities, and other cities outside Detroit MSA are used as the comparison groups. Employing a difference-in-difference approach, we find decreases in assaults and vandalism on home game days in Pontiac relative to the control cities after the Lions’ move. We find weak evidence of a net decrease in larceny and vandalism in Pontiac on home game days following the loss of professional football. No changes in assaults and auto theft are reported. While not conclusive, our results suggest that professional football leads to additional larceny and vandalism incidents but no effects on assaults and auto theft.
Journal: Applied Economics
Pages: 3958-3970
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588942
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588942
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Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3958-3970
Template-Type: ReDIF-Article 1.0
Author-Name: Minh Son Le
Author-X-Name-First: Minh Son
Author-X-Name-Last: Le
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Author-Name: Jeremy Nguyen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Nguyen
Title: Trade liberalisation, poverty, and inequality in Vietnam: a quantile regression approach
Abstract:
This study examines the effects of trade liberalisation on rural household welfare, poverty, and inequality in Vietnam, with the use of multiple estimation strategies, including the panel quantile regression approach based on Canay's two-step estimator. Taking account of the multi-faceted nature of trade liberalisation, we consider a set of household-level trade-related variables, including employment in export, import-competing, and manufacturing sectors. A unique panel data set is constructed from the Vietnam Household Living Standards Surveys conducted in 2002, 2004 and 2006. We find that employment in trade-related sectors contributes significantly to rural household welfare. Moreover, the effects of trade-related employment on welfare are heterogeneous across the welfare/income distribution, in that trade-related employment sectors have different influences on different groups/quantiles of households.
Journal: Applied Economics
Pages: 3971-3981
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588943
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588943
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Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3971-3981
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Martinez Cillero
Author-X-Name-First: Maria
Author-X-Name-Last: Martinez Cillero
Author-Name: Fiona Thorne
Author-X-Name-First: Fiona
Author-X-Name-Last: Thorne
Title: Sources of productivity growth using the Färe-Primont decomposition. An empirical application to the Irish beef sector
Abstract:
Several competing methodologies for TFP estimation have been developed in the past decades. A popular approach in the literature is index number computation. The most widely implemented TFP indices face however several important limitations. For example, Fisher, Tornqvist or Malmquist TFP indices do not satisfy the transitivity test, precluding reliable direct inter-temporal comparisons. The recently developed Färe-Primont TFP index satisfies this property, and therefore it is applied to analyse the evolution of TFP in the Irish beef sector between 2010 and 2016. Moreover, this index is multiplicatively complete, allowing a consistent decomposition of TFP growth in different sources. The sample of Irish beef farms used in the analysis is clustered to account for differences in production technology in the sector. The cluster-specific TFP changes computed were found to present important differences across the seven clusters identified. Significant TFP growth was identified in five of the classes, while TFP declined for the other two. Dispersion and mobility of the TFP levels indicate a lack of structural changes in the sector regardless of the cluster considered.
Journal: Applied Economics
Pages: 3982-3994
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588944
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588944
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Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3982-3994
Template-Type: ReDIF-Article 1.0
Author-Name: Bill Hu
Author-X-Name-First: Bill
Author-X-Name-Last: Hu
Author-Name: Christine Jiang
Author-X-Name-First: Christine
Author-X-Name-Last: Jiang
Author-Name: Thomas McInish
Author-X-Name-First: Thomas
Author-X-Name-Last: McInish
Author-Name: Yixi Ning
Author-X-Name-First: Yixi
Author-X-Name-Last: Ning
Title: Price Clustering of Chinese IPOs: The Impact of Regulation, Cultural Factors, and Negotiation
Abstract:
During June 2009–May 2012, the China Securities Regulatory Commission (CSRC) suspended window guidance that limits issue prices. Using this regime change as a natural experiment, we test the combined effects of regulation, culture, and negotiation on price clustering of Chinese IPOs. The proportion of IPOs priced on round number 0 increases from 42.58% during sample periods with window guidance to 79.81% during sample period without window guidance, a level similar to that reported in developed markets . Moreover, we document a connection between whole CNY pricing of Chinese IPOs and several uncertainty measures including a unique uncertainty proxy defined as the time gap between the IPO date and the listing date. Second to the round number 0, issuing firms favour number 8 that associates with fortune, particularly during sample periods with window guidance. Our findings that price restrictions limit the power of negotiations but not the influence of cultural factors contributing to the understanding of price formation process.
Journal: Applied Economics
Pages: 3995-4007
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588946
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588946
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Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:3995-4007
Template-Type: ReDIF-Article 1.0
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Shuddhasattwa Rafiq
Author-X-Name-First: Shuddhasattwa
Author-X-Name-Last: Rafiq
Author-Name: Sahar Shafiei
Author-X-Name-First: Sahar
Author-X-Name-Last: Shafiei
Author-Name: Yao Yao
Author-X-Name-First: Yao
Author-X-Name-Last: Yao
Title: Does urbanization increase pollutant emission and energy intensity? evidence from some Asian developing economies
Abstract:
This paper aims to investigate the effects of urbanization on pollutant emissions and energy intensity in selected Asian developing countries after controlling for the effects of disaggregated (renewable and non-renewable) energy consumption, trade liberalization, and economic growth. We use both linear and nonlinear panel data econometric techniques and employ recently introduced mean group estimation methods, allowing for heterogeneity and cross-sectional dependence. However, to check the robustness of our panel results, we also apply the autoregressive distributed lag (ARDL)-bound testing approach to country-level data. In addition, the relationship between affluence and CO2 emissions is examined in the context of the Environmental Kuznets Curve (EKC) hypothesis. The estimation results identify the population, affluence, and non-renewable energy consumption as major factors in pollutant emissions in Asian countries. However, the results of the EKC hypothesis show that when countries achieve a certain level of economic growth, their emissions tend to decline. Whereas nonlinear results show that renewable energy, urbanization, and trade liberalization reduce emissions, linear estimations do not confirm these outcomes. Thus, substitution of non-renewable for renewable energy consumption, cautious and planned urbanization programs and more liberal trading regimes may be viable options for sustainable growth of these developing Asian economies.
Journal: Applied Economics
Pages: 4008-4024
Issue: 36
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588947
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588947
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Handle: RePEc:taf:applec:v:51:y:2019:i:36:p:4008-4024
Template-Type: ReDIF-Article 1.0
Author-Name: Ashim Kumar Kar
Author-X-Name-First: Ashim Kumar
Author-X-Name-Last: Kar
Author-Name: Ranjula Bali Swain
Author-X-Name-First: Ranjula
Author-X-Name-Last: Bali Swain
Title: Are microfinance markets monopolistic?
Abstract:
Do microfinance institutions (MFIs) operate in a monopoly, monopolistic competition environment or are their revenues derived under perfect competition markets? We employ the Panzar–Rosse revenue test on a global panel data to assess the competitive environment in which MFIs of five selected countries operate: Ecuador, India, Indonesia, Peru and Philippines, over the period 2005–2009. We estimate the static and the dynamic revenue tests, with analyses of the interest rate and the return on assets. We control for microfinance-specific variables such as capital-assets-ratio, loans-assets and the size of the MFI. The analyses also account for the endogeneity problem by employing the fixed-effects two-stage least squares and the fixed-effects system generalized method of moments. Our results suggest that MFIs in Peru and India operate in a monopolistic environment. We also find weak evidence that the microfinance industry in Ecuador, Indonesia and Philippines may operate under perfect competition.
Journal: Applied Economics
Pages: 1-14
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1310999
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1310999
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Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:1-14
Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Lucarelli
Author-X-Name-First: Stefano
Author-X-Name-Last: Lucarelli
Author-Name: Filippo Umberto Andrini
Author-X-Name-First: Filippo Umberto
Author-X-Name-Last: Andrini
Author-Name: Annamaria Bianchi
Author-X-Name-First: Annamaria
Author-X-Name-Last: Bianchi
Title: Euro depreciation and trade asymmetries between Germany and Italy versus the US: industry-level estimates
Abstract:
Since April 2014 to March 2015, the European Central Bank expansionary monetary policy instigates a huge depreciation of the euro in terms of dollar. According to the mainstream monetary theory, these dynamics should make the exports cheaper and at the same time make the imports more expensive. Has real depreciation of the euro helped in the improvement of European countries’ trade balances? Following the main methodologies in the recent literature, our study analyses the effects of this depreciation both for Italy and Germany towards the US. We use industry-level data at monthly frequency. The results are different from each bilateral relationship. We find that 11 industries register a long-run improvement (8 for Italy and 3 for Germany). The J-curve effect is proven just in six cases, always for Italy. The inverted J-curve effect is proven in eight cases, four for Germany, and four for Italy. These results seem to be an indirect demonstration of the structural asymmetries between German and Italian economies: German economic system is more able to be competitive with a strong currency, than Italy.
Journal: Applied Economics
Pages: 15-34
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1311000
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311000
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Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:15-34
Template-Type: ReDIF-Article 1.0
Author-Name: A. M. Khalid
Author-X-Name-First: A. M.
Author-X-Name-Last: Khalid
Author-Name: G. Rajaguru
Author-X-Name-First: G.
Author-X-Name-Last: Rajaguru
Title: Investigating the determinants of domestic bonds: the role of socio-economic and institutional factors
Abstract:
This article investigates the determinants of the size of domestic bond market using economic, social and institutional factors. We expand the body of existing literature by suggesting that economic and social environment as well as institutional settings vary between developed and emerging economies. The article uses recent data from a wide range of countries, incorporates a variety of macroeconomic variables, social indicators and institutional factors to reassess the determinant of domestic bond markets. Robustness of the empirical analysis is established through both two-stage least squares and generalized method of movements techniques. The results of this article show that the size of the economy, breadth and depth of the banking system, the monetary policy stance, the degree of openness, the level of corruption, the degree of civil liberty and status of market access to investors, all play a crucial role in the determination of the size of the domestic bond market. We also find differences across developed and emerging market samples. The results are robust to different specifications and the corresponding estimation techniques.
Journal: Applied Economics
Pages: 35-50
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313951
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313951
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Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:35-50
Template-Type: ReDIF-Article 1.0
Author-Name: Zihan Liu
Author-X-Name-First: Zihan
Author-X-Name-Last: Liu
Author-Name: Ju’e Guo
Author-X-Name-First: Ju’e
Author-X-Name-Last: Guo
Author-Name: Shubin Wang
Author-X-Name-First: Shubin
Author-X-Name-Last: Wang
Author-Name: Hongtao Liu
Author-X-Name-First: Hongtao
Author-X-Name-Last: Liu
Title: Government incentive strategies and private capital participation in China’s Shale gas development
Abstract:
Shale gas development investments are uncertain and irreversible in the initial stage in China. Flexible incentive strategy is needed for governments to guide private capital participation at different development stages. This study aims to provide analysis governments can use to encourage private investment in shale gas projects according to its plans in an extended real options framework. A social benefits variable is introduced to determine the threshold of social benefits that determine whether the government will choose a deferred or instant incentives strategy. By considering the efficiency factor, we show the optimal arrangements of two kinds of incentives: tax cuts and production subsidies, to implement incentive targets. The results indicate that current market demand and social benefits are the key factors that affect the government’s choice of incentive strategy. We also find that the optimal level of incentives, either tax cuts or production subsidies, are independent of current market demand and future market uncertainty under the delayed incentive strategy, but which affect the optimal level of incentives under the instant motivation strategy, and ignoring the negative influence of unpredictable random events on future market demand might lead to insufficient government incentives in this case.
Journal: Applied Economics
Pages: 51-64
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313953
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313953
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Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:51-64
Template-Type: ReDIF-Article 1.0
Author-Name: W. David Allen
Author-X-Name-First: W. David
Author-X-Name-Last: Allen
Title: Self-protection against crime: what do schools do?
Abstract:
Most economic research about self-protection against crime concentrates on self-protection by individuals, households, and stores – private economic agents. We know much less about self-protection in public economic settings, such as by schools; this article takes a step towards learning more. An economic agent who self-protects benefits by reducing vulnerability to crime but incurs self-protection costs whether a victimization occurs or not; should a crime occur, the agent further bears the cost of the victimization itself. The agent, a school administrator in this application, must determine the optimal level of self-protection within this environment. Empirical results obtained using data from the 2004 and 2006 School Survey on Crime and Safety (SSOCS) show that schools self-protect (use professional security personnel) much in line with theoretical predictions. Among other findings, schools located in larger cities and that have a larger and older student body self-protect more prevalently than other schools, while schools with more academically able students self-protect less than schools with less productive student inputs.
Journal: Applied Economics
Pages: 65-78
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313955
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313955
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Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:65-78
Template-Type: ReDIF-Article 1.0
Author-Name: Raquel Campos
Author-X-Name-First: Raquel
Author-X-Name-Last: Campos
Author-Name: María Arrazola
Author-X-Name-First: María
Author-X-Name-Last: Arrazola
Author-Name: José de Hevia
Author-X-Name-First: José
Author-X-Name-Last: de Hevia
Title: Finding the right employee online: determinants of internet recruitment in Spanish firms
Abstract:
This paper analyses the variation of recruitment strategies in Spanish firms, with special emphasis on the Internet. Using data from the Spanish Labour Trends Survey for the period 2001–2011, we study the factors influencing the decision to use online recruitment and explore the differences between Internet and eight traditional recruitment channels. Our results show that the adoption of the Internet monotonically increases over the sample period, when Internet becomes more universal and even in periods with excess of applicants. Large firms operating in information-intensive activities, and located in regions more developed and with better infrastructures are more likely to search for new employees online. We also find that Internet and traditional recruitment methods follow different patterns, especially when using personal referrals and public employment services. Our results suggest the presence of network externalities derived from the increase number of compatible online job seekers.
Journal: Applied Economics
Pages: 79-93
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319560
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319560
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Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:79-93
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy F. Harris
Author-X-Name-First: Timothy F.
Author-X-Name-Last: Harris
Author-Name: Aaron Yelowitz
Author-X-Name-First: Aaron
Author-X-Name-Last: Yelowitz
Title: Racial disparities in life insurance coverage
Abstract:
We evaluate the extent to which there are racial disparities in life insurance coverage using multiple years of the Survey of Income and Program Participation between 2001 and 2010. We find that African Americans hold significantly more life insurance – especially whole life insurance – after controlling for other factors. We demonstrate that our findings diverge from prior work because we examine all households instead of focusing exclusively on married and cohabitating households. Although earning shocks due to mortality likely contribute to racial disparities in wealth, the influence is mitigated by the racial composition of life insurance holdings.
Journal: Applied Economics
Pages: 94-107
Issue: 1
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319562
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319562
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Handle: RePEc:taf:applec:v:50:y:2018:i:1:p:94-107
Template-Type: ReDIF-Article 1.0
Author-Name: Yanzhen Wang
Author-X-Name-First: Yanzhen
Author-X-Name-Last: Wang
Author-Name: Xiumin Li
Author-X-Name-First: Xiumin
Author-X-Name-Last: Li
Author-Name: Dong Huang
Author-X-Name-First: Dong
Author-X-Name-Last: Huang
Author-Name: Aihua Wang
Author-X-Name-First: Aihua
Author-X-Name-Last: Wang
Title: Is there evidence of “fear of appreciation” in China’s foreign exchange market intervention?
Abstract:
Using the data after the exchange rate regime reform in July 2005, this paper systematically studied the issue whether China has conducted ‘fear of appreciation’ asymmetric intervention. The results show that China’s intervention is discontinuous and asymmetric, rather than oversimplified ‘fear of appreciation’. China has a target range with respect to exchange rate deviation, and most observations are concentrated in this range, in which the exchange rate deviation can be tolerated. Outside the target range, the width of the range suggests that the tolerance level for appreciation is much higher than that for depreciation, whereas the estimated coefficients show that the monetary authority responds more vigorously to substantial appreciation than to depreciation. In addition, it can be expected that with the marketization of RMB exchange rate, China’s intervention degree will further decline.
Journal: Applied Economics
Pages: 537-551
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646878
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646878
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Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:537-551
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Fitzgerald
Author-X-Name-First: Timothy
Author-X-Name-Last: Fitzgerald
Author-Name: Forrest F. Aven
Author-X-Name-First: Forrest F.
Author-X-Name-Last: Aven
Title: Paying for procurement: analysis of landman compensation surveys
Abstract:
Utilizing a unique time series of cross-sectional surveys, we analyse the labour market for professional landman services to establish the factors affecting compensation during a recent period that substantially increased demand. Land services are an important subsector of the energy industry, especially for oil and gas exploration and production, which has been stimulated by technological improvements that facilitate economic extraction of unconventional resources. That led to an increase in oil and gas leasing activity and a resultant increase in demand for land services. We assess factors affecting compensation across several relevant margins. An influx of entrants into the profession has disrupted historic compensation patterns; entry appears to have been greatest in regions of the United States most affected by unconventional resource development. Some landmen are independent contractors while others are company employees. We find mixed results for professional certifications across contract types and gender, using instrumental variables to account for contractual choice.Abbreviation: AAPL: American Association of Professional Landmen; RPL: registered professional landman; CPL: certified professional landman; PLM: professional land manager
Journal: Applied Economics
Pages: 552-567
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646879
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646879
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Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:552-567
Template-Type: ReDIF-Article 1.0
Author-Name: Larissa da Silva Marioni
Author-X-Name-First: Larissa da Silva
Author-X-Name-Last: Marioni
Author-Name: Ricardo Da Silva Freguglia
Author-X-Name-First: Ricardo Da Silva
Author-X-Name-Last: Freguglia
Author-Name: Naercio A Menezes-Filho
Author-X-Name-First: Naercio A
Author-X-Name-Last: Menezes-Filho
Title: The impacts of teacher working conditions and human capital on student achievement: evidence from brazilian longitudinal data
Abstract:
We use a new longitudinal matched student-teacher data from Brazil to examine the impacts of teacher human capital and working conditions on student learning controlling for student, teacher, and student-teacher match fixed effects. We find that teacher working conditions impact students outcomes. Teachers employed in more than one school negatively affect student test scores, while those working more hours in the same school positively impact students outcomes. Additionally, teacher education, experience, and family income affect student outcomes in Portuguese but not in Mathematics. Students who change from a low to a high value-added teacher experience a significant increase in proficiency.
Journal: Applied Economics
Pages: 568-582
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1650885
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1650885
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Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:568-582
Template-Type: ReDIF-Article 1.0
Author-Name: Farid Ullah
Author-X-Name-First: Farid
Author-X-Name-Last: Ullah
Author-Name: Ping Jiang
Author-X-Name-First: Ping
Author-X-Name-Last: Jiang
Author-Name: Yasir Shahab
Author-X-Name-First: Yasir
Author-X-Name-Last: Shahab
Author-Name: Hai-Xia Li
Author-X-Name-First: Hai-Xia
Author-X-Name-Last: Li
Author-Name: Lei Xu
Author-X-Name-First: Lei
Author-X-Name-Last: Xu
Title: Block ownership and CEO compensation: does board gender diversity matter?
Abstract:
This study investigates the effect of block ownership (institutions and state) on CEO compensation and the extent to which gender diversity in the corporate board moderates this nexus during the period from 2008 to 2016 in all Chinese A-share listed firms. The empirical findings of our study are twofold. First, our results indicate that institutional ownership has a positive and significant impact on CEO compensation, while state ownership has a negative and significant impact on CEO compensation. Second, by analysing the moderating role of gender diversity, our results show that gender diversity negatively (positively) moderates the relationship between institutional (state) ownership and CEO compensation. These findings are robust with the use of an alternative measure of CEO compensation and estimation techniques. Overall, our study supports the resource dependence perspective of the moderating role of board gender diversity.
Journal: Applied Economics
Pages: 583-597
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659490
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659490
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Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:583-597
Template-Type: ReDIF-Article 1.0
Author-Name: Alfonso Mendoza-Velázquez
Author-X-Name-First: Alfonso
Author-X-Name-Last: Mendoza-Velázquez
Author-Name: Vicente German-Soto
Author-X-Name-First: Vicente
Author-X-Name-Last: German-Soto
Author-Name: Mercedes Monfort
Author-X-Name-First: Mercedes
Author-X-Name-Last: Monfort
Author-Name: Javier Ordóñez
Author-X-Name-First: Javier
Author-X-Name-Last: Ordóñez
Title: Club convergence and inter-regional inequality in Mexico, 1940-2015
Abstract:
In this paper, we analyse the convergence patterns in inter-regional inequality and income per capita for the Mexican states over the period 1940–2015. To that end, we apply a time-series approach considering temporal and transitional heterogeneity. Results indicate that Mexican states do not converge to the same long-run equilibrium. Instead of overall convergence, we find club convergence for both regional inequality and income per capita. The existence of clubs means that measures aimed at reducing income inequality and promoting regional growth should consider the specific characteristics revealed in the convergence analyses. Furthermore, pro-growth regional policies in Mexico may not necessarily reduce inter-regional income inequality. Income disparities thus need to be specifically addressed through pro-poor regional policies.
Journal: Applied Economics
Pages: 598-608
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659491
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659491
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Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:598-608
Template-Type: ReDIF-Article 1.0
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Title: Payments data: do consumers want banks to keep them in a safe or turn them into gold?
Abstract:
For policymakers seeking to protect financial stability and financial institutions, it is key to know consumers’ attitudes towards payments data usage. This article provides detailed insight into these attitudes based on unique surveys held among Dutch consumers. Attitudes towards payments data usage by banks and the related factors depend on the purpose of the data use. For example, most people do not mind if their payments data are being used to enhance security but do not want these data to be shared with restaurants to get special offers. The selling of payments data by banks to other companies would result in a significant decline of trust in banks.
Journal: Applied Economics
Pages: 609-622
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659493
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659493
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Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:609-622
Template-Type: ReDIF-Article 1.0
Author-Name: Joana Passinhas
Author-X-Name-First: Joana
Author-X-Name-Last: Passinhas
Author-Name: Isabel Proença
Author-X-Name-First: Isabel
Author-X-Name-Last: Proença
Title: Measuring the gender disparities in unemployment dynamics during the recession: evidence from Portugal
Abstract:
This article researches gender differences in the incidence and persistence of unemployment during the debt crisis and recession in Portugal through estimating a dynamic random effects probit model to control for unobserved individual heterogeneity and for the ‘initial conditions’ problem. The estimation applies data from four waves of ICOR – the Survey on Income and Living Conditions between 2010 and 2013. We find strong evidence of persistence in unemployment alongside indications that men are more prone to enduring negative implications from previous periods of unemployment. Simultaneously, we find evidence of a greater likelihood of unemployment for women through a fixed effect designed to capture gender discrimination in unstable labour markets. Our results suggest that policies to boost employment should accommodate a gender dimension and also place a special emphasis on the long-term unemployed.
Journal: Applied Economics
Pages: 623-636
Issue: 6
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659494
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659494
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Handle: RePEc:taf:applec:v:52:y:2020:i:6:p:623-636
Template-Type: ReDIF-Article 1.0
Author-Name: Liyan Han
Author-X-Name-First: Liyan
Author-X-Name-Last: Han
Author-Name: Mengchao Qi
Author-X-Name-First: Mengchao
Author-X-Name-Last: Qi
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Macroeconomic policy uncertainty shocks on the Chinese economy: a GVAR analysis
Abstract:
This article studies the spillovers of economic policy uncertainty (EPU) from developed economies to China in terms of the source, extent and persistence by estimating a global vector autoregressive (GVAR) model with both financial and trade variables acting as the transmission channels. Our findings confirm the existence of international transmissions of policy uncertainty, while the patterns differ markedly. The US EPU appears to be the most significant cause of the fall of export, industrial production, equity price and exchange rate, meanwhile, the EU EPU is also to be blamed for the depreciation of RMB. In contrast to industrial production, which shows the largest negative impact, Chinese inflation increases to a relatively smaller extent with the EPU shocks ranking as the US, Japanese and the EU. Regardless of the minor impact on a long-term interest rate, the short-term interest rate in China reacts positively to the European and US EPU shocks. Despite the independent national monetary policies, EPUs from the EU, Japan and the UK can decrease the Chinese monetary aggregate. In summary, the Chinese economy responds the most to the US EPU, especially to its inflation expectation disagreement component, whereas it responds the least to the UK EPU.
Journal: Applied Economics
Pages: 4907-4921
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1167828
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167828
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Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4907-4921
Template-Type: ReDIF-Article 1.0
Author-Name: William W. Chow
Author-X-Name-First: William W.
Author-X-Name-Last: Chow
Author-Name: Michael K. Fung
Author-X-Name-First: Michael K.
Author-X-Name-Last: Fung
Author-Name: Arnold C. S. Cheng
Author-X-Name-First: Arnold C. S.
Author-X-Name-Last: Cheng
Title: Convergence and spillover of house prices in Chinese cities
Abstract:
The issue of house price convergence in 34 Chinese cities is investigated. We augmented the convergence model with contemporaneous spatial dependence in house prices and found that price convergence and positive spatial spillover are both present. We explicitly addressed the endogeneity problem by introducing a Bayesian instrumental variable setup, which was estimated with particle filtering techniques. From a growth poles perspective, the empirical evidence indicates that the spread effect in regional house prices outweighs the backwash effect. The identified positive spatial spillover has two effects on the growth of house prices in Chinese cities. First, the spillover elevates the trajectories of the steady-state growth paths of house prices. Second, the spillover narrows the gaps between the growth paths of house prices in neighbouring cities. Shocks to the socio-economic variables of a city generate their own effects on domestic house prices that dominate the effects arising from cross-city price feedbacks, thus mitigating the prospect of level convergence. Our findings also suggest a collaborating role between time and spatial dependence parameters. The identification of inter-city spillover, which is a conditioning factor for regional house price convergence, offers implications to policies that are most likely to be effective in reducing regional disparity.
Journal: Applied Economics
Pages: 4922-4941
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1167829
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167829
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Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4922-4941
Template-Type: ReDIF-Article 1.0
Author-Name: Lee A. Smales
Author-X-Name-First: Lee A.
Author-X-Name-Last: Smales
Title: Time-varying relationship of news sentiment, implied volatility and stock returns
Abstract:
I examine the relationship between aggregate news sentiment, S&P 500 index (SPX) returns, and changes in the implied volatility index (VIX). I find a significant negative contemporaneous relationship between changes in VIX and both news sentiment and stock returns. This relationship is asymmetric whereby changes in VIX are larger following negative news and/or stock market declines. Vector autoregression (VAR) analysis of the dynamics and cross-dependencies between variables reveals a strong positive relationship between previous and current period changes in implied volatility and stock returns, while current period and lagged news sentiment has a significant positive (negative) relationship with stock returns (changes in VIX). I develop a simple trading strategy whereby high (low) levels of implied volatility signal attractive opportunities to take short (long) positions in the underlying index, while extremely negative (positive) news sentiment signals opportunities to enter short (long) index positions. The investor fear gauge (VIX) appears to perform better than news sentiment measures in forecasting future returns.
Journal: Applied Economics
Pages: 4942-4960
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1167830
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167830
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Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4942-4960
Template-Type: ReDIF-Article 1.0
Author-Name: Hai Yue Liu
Author-X-Name-First: Hai Yue
Author-X-Name-Last: Liu
Author-Name: Ivan Deseatnicov
Author-X-Name-First: Ivan
Author-X-Name-Last: Deseatnicov
Title: Exchange rate and Chinese outward FDI
Abstract:
Did the exchange rate (ER) regime change that was announced by the Chinese government in 2005 lead to an increased sensitivity of Chinese multinational companies (MNCs) to ER fluctuations? To answer this question our article considers the effect of ER level, volatility and expectation on the Chinese outward foreign direct investment (OFDI) activities in 119 countries for a period of 2003–2013. We find striking evidence that Chinese Renminbi appreciation has a negative impact on Chinese outward FDI flows, and both higher ER volatility and expected depreciation encourage Chinese outward FDI flows. We introduce two complementary effects that explain these findings: repatriation effect and mercantilist effect. In view of the recent debate about the growing importance of Chinese Renminbi in the international transactions we believe that our research results shed light on the possible impact of ER policies on Chinese MNCs behaviour and global FDI distribution.
Journal: Applied Economics
Pages: 4961-4976
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1167831
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167831
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Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4961-4976
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Molnár
Author-X-Name-First: Peter
Author-X-Name-Last: Molnár
Title: High-low range in GARCH models of stock return volatility
Abstract:
We suggest a simple and general way to improve the GARCH volatility models using the intraday range between the highest and the lowest price to proxy volatility. We illustrate the method by modifying a GARCH(1,1) model to a range-GARCH(1,1) model. Our empirical analysis conducted on stocks, stock indices and simulated data shows that the range-GARCH(1,1) model performs significantly better than the standard GARCH(1,1) model both in terms of in-sample fit and out-of-sample forecasting ability.
Journal: Applied Economics
Pages: 4977-4991
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170929
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170929
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Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4977-4991
Template-Type: ReDIF-Article 1.0
Author-Name: Ying Fan
Author-X-Name-First: Ying
Author-X-Name-Last: Fan
Author-Name: Yin-Peng Liu
Author-X-Name-First: Yin-Peng
Author-X-Name-Last: Liu
Author-Name: Jian-Feng Guo
Author-X-Name-First: Jian-Feng
Author-X-Name-Last: Guo
Title: How to explain carbon price using market micro-behaviour?
Abstract:
In this article, we analyse the micro-behaviours of the emitting companies and financial intermediaries in the European Union emissions trading scheme (EU-ETS) and their influence on carbon prices. Based on the full-sample community independent transaction log (CITL), the micro-behaviours can be observed in a closed system. The micro-behaviours of the emitting companies are divided into ‘compliance trading’ and ‘non-compliance trading’ based on the emitting companies’ trading motivations. The micro-behaviours of the financial intermediaries are measured by their influence on the total supply and demand in the market. Then, an AR-GARCH model is established to examine the dynamic relationships between carbon prices and the micro-behaviours of the emitting companies and financial intermediaries. The estimation results suggest that the prices–behaviours relationship is significant. Other important findings are as follows: (1) the mean value of carbon prices positively depends on the compliance trading of the emitting companies and the micro-behaviours of the financial intermediaries; (2) non-compliance buying increases the volatility of carbon prices, while the non-compliance selling stabilizes it and (3) the micro-behaviours of the emitting companies in the lower 50% in terms of emission levels have no significant influence on the mean carbon price, but their non-compliance buying stabilizes the carbon price.
Journal: Applied Economics
Pages: 4992-5007
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170930
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170930
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Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:4992-5007
Template-Type: ReDIF-Article 1.0
Author-Name: Pablo A. Garcia-Fuentes
Author-X-Name-First: Pablo A.
Author-X-Name-Last: Garcia-Fuentes
Author-Name: P. Lynn Kennedy
Author-X-Name-First: P. Lynn
Author-X-Name-Last: Kennedy
Author-Name: Gustavo F. C. Ferreira
Author-X-Name-First: Gustavo F. C.
Author-X-Name-Last: Ferreira
Title: U.S. foreign direct investment in Latin America and the Caribbean: a case of remittances and market size
Abstract:
This article investigates the effect of remittances on U.S. foreign direct investment (FDI) flows to Latin America and the Caribbean (LAC). It covers 26 countries for the period 1983–2010. The results show a positive and significant impact of remittances on U.S. FDI flows. However, this effect depends upon the level of gross domestic product (GDP) per capita of the host country. On average, the results show that increasing remittances by one standard deviation increases U.S. FDI flows by 0.44 percent a year. Also, host country demand positively affects U.S. FDI flows, which supports the market size hypothesis.
Journal: Applied Economics
Pages: 5008-5021
Issue: 51
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170931
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170931
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Handle: RePEc:taf:applec:v:48:y:2016:i:51:p:5008-5021
Template-Type: ReDIF-Article 1.0
Author-Name: Toni Mora
Author-X-Name-First: Toni
Author-X-Name-Last: Mora
Author-Name: Francesc Prior
Author-X-Name-First: Francesc
Author-X-Name-Last: Prior
Title: The impact of mobile financial services’ usage on microfinance delinquency
Abstract:
This paper studies the impact of Mobile Financial Systems’ usage on microcredit delinquency ratios in Tunisia by using either a two-part model or matching econometric procedures. Our large dataset contains all of the administrative registers that belong to the six branches of Enda, the incumbent Institution leader in Tunisia. We find a significant reduction of 4.92 days of late repayment for an average user of MFS in an environment where 15% of loans have been paid late at least once. We foresee a tremendous opportunity to improve the MFIs’ repayment ratios and, consequently, provide microcredit customers with more financing for income generating activities.
Journal: Applied Economics
Pages: 5354-5365
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486990
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486990
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Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5354-5365
Template-Type: ReDIF-Article 1.0
Author-Name: Kendrick Morales
Author-X-Name-First: Kendrick
Author-X-Name-Last: Morales
Author-Name: Prosper Raynold
Author-X-Name-First: Prosper
Author-X-Name-Last: Raynold
Author-Name: Jing Li
Author-X-Name-First: Jing
Author-X-Name-Last: Li
Title: The empirical relationship between commitment enhancement devices and terrorism
Abstract:
An extant theoretical literature attributes the high lethality of violent extremist religious sects (VERSs) to their comparative advantage in assembling coalitions of highly committed operatives and identifies sacrifice and stigma (S&S) and social service provision (SSP) as the primary commitment enhancement devices VERSs employ. However, lack of direct measures of the VERSs’ deployment of these devices has impeded efforts to test the hypothesized effects of S&S and SSP on terrorism. This article exploits the relationship between exogenous variation in the marginal productivities of S&S and SSP as inputs in the production of commitment and variation in VERSs’ employment of these inputs to identify proxies for S&S and SSP. Using data from 158 countries, our cross-sectional estimates of the effects of S&S and SSP on the impact of terrorism are significant and larger than the effects of geographic and political variables that are consistently reported to be both significant and substantial.
Journal: Applied Economics
Pages: 5366-5380
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486991
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486991
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Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5366-5380
Template-Type: ReDIF-Article 1.0
Author-Name: Bright Gershion Godigbe
Author-X-Name-First: Bright Gershion
Author-X-Name-Last: Godigbe
Author-Name: Chin Man Chui
Author-X-Name-First: Chin Man
Author-X-Name-Last: Chui
Author-Name: Chih-Liang Liu
Author-X-Name-First: Chih-Liang
Author-X-Name-Last: Liu
Title: Directors network centrality and earnings quality
Abstract:
This study examines whether firms with network central boards of directors behave differently from other firms in terms of financial reporting quality. We find that earnings quality among firms is low when board networks are channels of incorrect information transmission (including earnings management information) and for firms whose directors are awarded equity-based compensation have connections through boardroom networks, but earnings quality is better for firms with good performance in spite of their networks. These results are robust to controlling for firm information environment, growth, size, age, leverage, performance, volatility in firm operations, and corporate governance.
Journal: Applied Economics
Pages: 5381-5400
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486992
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486992
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Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5381-5400
Template-Type: ReDIF-Article 1.0
Author-Name: Chaoqun Ma
Author-X-Name-First: Chaoqun
Author-X-Name-Last: Ma
Author-Name: Shisong Xiao
Author-X-Name-First: Shisong
Author-X-Name-Last: Xiao
Author-Name: Zonggang Ma
Author-X-Name-First: Zonggang
Author-X-Name-Last: Ma
Title: Investor sentiment and the prediction of stock returns: a quantile regression approach
Abstract:
We employ quantile regression to provide a detailed picture of the stock return forecasting ability of investor sentiment. We find that investor sentiment predicts aggregate stock returns at lower quantiles. However, the forecasting power is lost at upper quantiles. The results are robust after controlling for a comprehensive set of macroeconomic and financial predictors and for characteristic portfolios. We also show that investor sentiment consists mainly of cash flow news and contains little information about discount rate news. The ability to forecast cash flows increases gradually from the lower quantiles to upper quantiles. Our results do not support that the ability of investor sentiment to predict stock returns comes from a rational forecast of future cash flows.
Journal: Applied Economics
Pages: 5401-5415
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486993
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486993
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Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5401-5415
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Fackler
Author-X-Name-First: Daniel
Author-X-Name-Last: Fackler
Author-Name: Steffen Müller
Author-X-Name-First: Steffen
Author-X-Name-Last: Müller
Author-Name: Jens Stegmaier
Author-X-Name-First: Jens
Author-X-Name-Last: Stegmaier
Title: Plant-level employment development before collective displacements: comparing mass layoffs, plant closures and bankruptcies
Abstract:
This article analyzes the development of employment levels and worker flows before bankruptcies, plant closure without bankruptcies and mass layoffs. Utilizing administrative plant-level data for Germany, we find no systematic employment reductions prior to mass layoffs, a strong and long-lasting reduction prior to closures, and a much shorter shadow of death preceding bankruptcies. Employment reductions in closing plants, in contrast to bankruptcies and mass layoffs, do not come along with increased worker flows. These patterns point to an intended and controlled shrinking strategy for closures without bankruptcy and to an unintended collapse for bankruptcies and mass layoffs.
Journal: Applied Economics
Pages: 5416-5435
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486994
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486994
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Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5416-5435
Template-Type: ReDIF-Article 1.0
Author-Name: Chen Ma
Author-X-Name-First: Chen
Author-X-Name-Last: Ma
Author-Name: Hui Du
Author-X-Name-First: Hui
Author-X-Name-Last: Du
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Title: Chinese accounting restatement and the timeliness of annual report
Abstract:
Chinese accounting restatements are mainly disclosed in companies’ annual reports due to unique Chinese institutional background and regulatory setting. China provides the scheduled disclosure system for annual report, which is seldom found in any other countries. The difference between actual filing date and scheduled date as timeliness proxy can better depict how annual report is delayed by sudden events such as restatements. Using manually collected data of accounting restatements from 2004 to 2014, we study the association between Chinese accounting restatement and the timeliness of annual report. The results indicate that with an accounting restatement, a company takes longer to file annual reports than scheduled, suggesting a negative association between Chinese accounting restatements and timeliness of annual reports. We also find that this result is not altered whether CEO/chairman or auditor is the same between misstatement period and restatement period. The results are robust when other timeliness measures are used. When further examining the association between various restatement characteristics and timeliness of annual reports, we find an overall negative association between restatement severity and the timeliness of annual reports. We contribute to the existing accounting restatement literature from international perspective with evidence that restatements delay the timeliness of financial reporting.
Journal: Applied Economics
Pages: 5436-5453
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486995
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486995
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Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5436-5453
Template-Type: ReDIF-Article 1.0
Author-Name: Brenda Gannon
Author-X-Name-First: Brenda
Author-X-Name-Last: Gannon
Author-Name: James Banks
Author-X-Name-First: James
Author-X-Name-Last: Banks
Author-Name: James Nazroo
Author-X-Name-First: James
Author-X-Name-Last: Nazroo
Author-Name: Luke Munford
Author-X-Name-First: Luke
Author-X-Name-Last: Munford
Title: An econometric analysis of cognitive impairment and healthcare utilization in the ageing population
Abstract:
The ageing population is a major concern for policy makers, with the ever-increasing strains placed on health budgets. One overlooked area of research is the impact that cognitive impairment (an early marker of potential dementia onset) has on the healthcare utilization of an ageing population. Based on the theoretical micro-economic foundations of healthcare demand, we study the relationship between cognitive functioning and impairment, measured by word recall and changes thereof, and healthcare utilization among over 50s in nine European countries. The contribution of this article is to produce estimates for cognitive functioning and impairment, as opposed to full dementia, in the context of healthcare utilization.We apply regression models to healthcare utilization data from Waves 1, 2 and 4 of the Survey of Health, Ageing and Retirement in Europe and find that recalling one additional word is associated with a reduction in visits to a medical doctor of 0.32, per year (p<0.01). Even after controlling for self-assessed health, this association is strong at just over 0.1 visits – this is the additional impact, over and above the average number of visits for similar individuals without cognitive impairment.
Journal: Applied Economics
Pages: 5454-5463
Issue: 50
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486996
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486996
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Handle: RePEc:taf:applec:v:50:y:2018:i:50:p:5454-5463
Template-Type: ReDIF-Article 1.0
Author-Name: Stavros Degiannakis
Author-X-Name-First: Stavros
Author-X-Name-Last: Degiannakis
Author-Name: George Filis
Author-X-Name-First: George
Author-X-Name-Last: Filis
Author-Name: George Palaiodimos
Author-X-Name-First: George
Author-X-Name-Last: Palaiodimos
Title: Investments and uncertainty revisited: the case of the US economy
Abstract:
This article examines the relationship between investments and uncertainty for the US economy, as the latter is approximated by consumer sentiment, purchasing managers’ prospects and economic policy uncertainty. Contrary to the existing literature, we provide evidence that this relationship is time varying. The time variation is attributed to the observed temporal replacement effect between private and public investments. Furthermore, we show that there are two distinct correlation regimes in this relationship and unless we concentrate on them, we cannot fully unravel the real link between uncertainty and investments. Finally, we examine whether the use of the two correlation regimes provides better forecasts for investments compared to the use of the uncertainty indices alone. The forecasting exercise reveals that the use of correlation regimes provides statistically superior out-of-sample forecasts.
Journal: Applied Economics
Pages: 4521-4529
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284995
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284995
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Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4521-4529
Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Luis Antonio Monteros
Author-X-Name-First: Luis Antonio
Author-X-Name-Last: Monteros
Title: Event-study analysis by using dynamic conditional score models
Abstract:
This article considers the most important information technology (IT) products in order to perform an event-study analysis of the out-of-sample predictability of IT stock returns. We define two subperiods, the estimation and forecast windows, for each IT product that are separated by the product release date. We investigate whether post-release-date returns can be predicted by using data on pre-release-date returns. We use static one-step-ahead density forecasting. We compare the forecast performance of autoregressive moving average (ARMA) plus generalized autoregressive conditional heteroscedasticity (GARCH) and quasi-ARMA (QARMA) plus Beta-$$t$$t
-EGARCH (exponential-GARCH). QARMA plus Beta-$$t$$t
-EGARCH belongs to the family of dynamic conditional score (DCS) models. We find that the in-sample statistical performance of DCS is superior to that of ARMA plus GARCH for most of the IT stocks. We also find that the out-of-sample density predictive performance of ARMA plus GARCH is never significantly superior to that of DCS. However, the predictive performance of DCS significantly dominates that of ARMA plus GARCH for several IT products. We undertake a Monte Carlo value-at-risk (VaR) application of our results to Windows 95 of Microsoft.
Journal: Applied Economics
Pages: 4530-4541
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284996
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284996
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Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4530-4541
Template-Type: ReDIF-Article 1.0
Author-Name: David L. Anderson
Author-X-Name-First: David L.
Author-X-Name-Last: Anderson
Author-Name: John Tressler
Author-X-Name-First: John
Author-X-Name-Last: Tressler
Title: Researcher rank stability across alternative output measurement schemes in the context of a time limited research evaluation: the New Zealand case
Abstract:
This article focuses on the stability of rankings of academics by research productivity in the context of short-term decision-making. In particular, the growing use of national research assessment exercises (NRAE) has increased interest in identifying the contributions of individual researchers to an assessment unit’s output and ranking. The article concentrates on the assessment of individuals using plausible journal ranking schemes. We find that despite statistical evidence of a high degree of stability across journal ranking schemes as indicated by rank correlation coefficients, the particular ranking scheme used is of great importance to individual researchers. This applies with particular force to academics working within a NRAE environment based on individual assessment such as New Zealand’s PBRF.
Journal: Applied Economics
Pages: 4542-4553
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284997
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284997
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Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4542-4553
Template-Type: ReDIF-Article 1.0
Author-Name: Mardi Dungey
Author-X-Name-First: Mardi
Author-X-Name-Last: Dungey
Author-Name: Jan P.A.M. Jacobs
Author-X-Name-First: Jan P.A.M.
Author-X-Name-Last: Jacobs
Author-Name: Jing Tian
Author-X-Name-First: Jing
Author-X-Name-Last: Tian
Title: Forecasting output gaps in the G-7 countries: the role of correlated innovations and structural breaks
Abstract:
Trend GDP and output gaps play an important role in fiscal and monetary policy formulation, often including the need for forecasts. In this article, we focus on forecasting trend GDP and output gaps with Beveridge-Nelson trend-cycle decompositions trend-cycle decompositions and investigate how these are affected by assumptions concerning correlated innovations and structural breaks. We evaluate expanding window, one-step-ahead forecasts indirectly for the G-7 countries on the basis of real GDP growth rate forecasts. We find that correlated innovations affect real GDP growth rate forecasts positively, while allowing for structural breaks works for some countries but not for all. In the face of uncertainty, the evidence supports that in making forecasts of trends and output gap policy-makers should focus on allowing for the correlation of shocks as an order of priority higher than unknown structural breaks.
Journal: Applied Economics
Pages: 4554-4566
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284998
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284998
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Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4554-4566
Template-Type: ReDIF-Article 1.0
Author-Name: Trond Bjørndal
Author-X-Name-First: Trond
Author-X-Name-Last: Bjørndal
Author-Name: Jordi Guillen
Author-X-Name-First: Jordi
Author-X-Name-Last: Guillen
Title: Market integration between wild and farmed seabream and seabass in Spain
Abstract:
Gilthead seabream (Sparus aurata) and European seabass (Dicentrarchus labrax) production from aquaculture has been increasing since the 1990s. Nowadays, about 95% of their production comes from aquaculture. In this study, we analyse if the rapid growth in the aquaculture production of both species has affected the capture fisheries prices of both species. In other words, we investigate if there is market integration between wild and farmed gilthead seabream and European seabass. In order to do this analysis, we use data from the main gilthead seabream and European seabass markets in Spain. The results show that there is no market integration between wild and farmed gilthead seabream and European seabass. This implies that capture fisheries are not affected by increases in the aquaculture production of both species. But gilthead seabream and European seabass aquaculture producers face a smaller demand that explains the difficulties this aquaculture segment is facing.
Journal: Applied Economics
Pages: 4567-4578
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1287856
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287856
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Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4567-4578
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Carlos Barros
Author-X-Name-First: Carlos
Author-X-Name-Last: Barros
Author-Name: Dercio Mandlaze
Author-X-Name-First: Dercio
Author-X-Name-Last: Mandlaze
Title: A performance assessment of Mozambique banks: a Bayesian stochastic frontier
Abstract:
This article analyses the technical efficiency of Mozambican banks from 2005 to 2014 with a Bayesian stochastic frontier model. The intermediate approach is adopted and the results reveal that efficiency varies amongst the banks analysed. Foreign ownership of Mozambican banks is also analysed, as is public ownership, the role of mergers and acquisitions, big banks and active dividend policy within the context of bank costs. Policy implications are then derived.
Journal: Applied Economics
Pages: 4579-4587
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1287857
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287857
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Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4579-4587
Template-Type: ReDIF-Article 1.0
Author-Name: Abhay K. Singh
Author-X-Name-First: Abhay K.
Author-X-Name-Last: Singh
Author-Name: David E. Allen
Author-X-Name-First: David E.
Author-X-Name-Last: Allen
Author-Name: Robert J. Powell
Author-X-Name-First: Robert J.
Author-X-Name-Last: Powell
Title: Tail dependence analysis of stock markets using extreme value theory
Abstract:
Financial risk modelling frequently uses the assumption of a normal distribution when considering the return series which is inefficient if the data is not normally distributed or if it exhibits extreme tails. Estimation of tail dependence between financial assets plays a vital role in various aspects of financial risk modelling including portfolio theory and hedging amongst applications. Extreme Value Theory (EVT) provides well established methods for considering univariate and multivariate tail distributions which are useful for forecasting financial risk or modelling the tail dependence of risky assets. The empirical analysis in this article uses nonparametric measures based on bivariate EVT to investigate asymptotic dependence and estimate the degree of tail dependence of the ASX-All Ordinaries daily returns with four other international markets, viz., the S&P-500, Nikkei-225, DAX-30 and Heng-Seng for both extreme right and left tails of the return distribution. It is investigated whether the asymptotic dependence between these markets is related to the heteroscedasticity present in the logarithmic return series using GARCH filters. The empirical evidence shows that the asymptotic extreme tail dependence between stock markets does not necessarily exist and rather can be associated with the heteroscedasticity present in the financial time series of the various stock markets.
Journal: Applied Economics
Pages: 4588-4599
Issue: 45
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1287858
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287858
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Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4588-4599
Template-Type: ReDIF-Article 1.0
Author-Name: Edmond Berisha
Author-X-Name-First: Edmond
Author-X-Name-Last: Berisha
Author-Name: John Meszaros
Author-X-Name-First: John
Author-X-Name-Last: Meszaros
Author-Name: Zaman Zamanian
Author-X-Name-First: Zaman
Author-X-Name-Last: Zamanian
Title: Quantitative easing and median income: a state-level analysis
Abstract:
Due to the Great Recession, the Federal Reserve engaged in unconventional monetary policy (QE) to fight the effects of the economic downturn. Literature asserts that QE did have impacts on economic growth and helped alleviate the effects of the recession. Recently, critics have asserted that the benefits of QE may not have been equally distributed across households. In this paper, we build a state-level dataset to investigate the dynamics of QE measures and median income across the U.S states. The findings indicate that, for the period 2008 to 2014, there is statistical evidence that increases in the Federal Reserve’s balance sheet correspond with higher nominal median income. However, once we adjust for inflation, the results become statistically insignificant and the impact of QE on median income becomes almost zero.
Journal: Applied Economics
Pages: 4564-4575
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2018.1564118
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564118
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Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4564-4575
Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Jingyi Jia
Author-X-Name-First: Jingyi
Author-X-Name-Last: Jia
Author-Name: Hadi Movaghari
Author-X-Name-First: Hadi
Author-X-Name-Last: Movaghari
Title: Determinants of dividend payout and dividend propensity in an emerging market, Iran: an application of the LASSO
Abstract:
Accurate prediction of dividends is important for market participants such as investors, firm managers, and monitoring authorities, as they can, respectively, invest, manage dividend decisions, and monitor dividend policies more effectively. We identify the most relevant variables for predicting the dividend payout of the firms in an emerging market, Iran, using the least absolute shrinkage and selection operator (LASSO). The advantages of the LASSO include: enhancing the prediction accuracy of the dividend model, improving interpretation of the results, and applicability to high-dimensional data. We obtain several results. First, some fundamental determinants of dividends in the industrialized economies such as market-to-book ratio and current ratio, do not play a role in deciding dividends in Iran. Second, LASSO-selected variables outperform the variables commonly used in the literature in terms of model fit and prediction accuracy. Third, business risk, leverage, return on assets and effective tax rate are the most important predictors of dividend propensity of the Iranian firms. Fourth, if the support vector machine algorithm, an often-used classification method, is combined with LASSO-selected variables, it can better discriminate between dividend-paying and dividend non-paying firms than other methods such as logistic regression and linear discriminant analysis.Abbreviations: LASSO: Least Absolute Shrinkage and Selection Operator; TSE: Tehran Stock Exchange; RMSE: Root Mean Squared Errors; MAE: Mean Absolute Errors; ROC: Receiver Operating Characteristics; GMM: Generalized Method of Moments; MENA: Middle East and North Africa region; AIC: Akaike Information Criterion; BIC: Bayesian Information Criterion; LARS: Least Angel Regression; OLS: Ordinary Least Squares; AUC: Area Under Curve; BS: Brier Score ; OA: Overall Accuracy; LDA: Linear Discriminant Analysis; SVM: Support Vector Machine algorithm; LR: Logistic Regression.
Journal: Applied Economics
Pages: 4576-4596
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593315
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593315
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Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4576-4596
Template-Type: ReDIF-Article 1.0
Author-Name: Abidin Alhassan
Author-X-Name-First: Abidin
Author-X-Name-Last: Alhassan
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Krishna Reddy
Author-X-Name-First: Krishna
Author-X-Name-Last: Reddy
Author-Name: Geeta Duppati
Author-X-Name-First: Geeta
Author-X-Name-Last: Duppati
Title: The impact of formal financial inclusion on informal financial intermediation and cash preference: evidence from Africa
Abstract:
This paper examines the effect of formal financial intermediation (inclusion) on informal financial intermediation and the use of cash for economic activities. Using data from the Global Findex 2014, we examine whether the use of formal financial intermediaries reduces cash preference and the use of informal financial intermediaries. Our empirical results show that informal financial intermediation is positively associated with formal financial inclusion. This indicates that the relationship between informal and formal financial intermediation is complementary rather than a trade-off, which demonstrates the importance of informal finance plays in the financial system of Africa. Moreover, the use of formal financial intermediaries significantly reduces the preference for holding cash, implying that a robust financial system infrastructure has the potential of mobilizing excess liquidity in the informal economy of Africa for growth and development.
Journal: Applied Economics
Pages: 4597-4614
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593316
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593316
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Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4597-4614
Template-Type: ReDIF-Article 1.0
Author-Name: Ruoye Yang
Author-X-Name-First: Ruoye
Author-X-Name-Last: Yang
Author-Name: Kellie Curry Raper
Author-X-Name-First: Kellie Curry
Author-X-Name-Last: Raper
Author-Name: J. Ross Pruitt
Author-X-Name-First: J. Ross
Author-X-Name-Last: Pruitt
Title: The influence of recession and income strata on consumer demand for protein sources
Abstract:
Though meat products are considered the primary sources of protein in the U.S., people consume a variety of protein sources including meat, fish, eggs, dairy products and beans. This study expands the typical meat demand study by including alternate protein sources. We implement state-space modelling and Bai-Perron tests to examine structural change in U.S. expenditure patterns on protein sources across pre- and post-recessionary periods. Results are integrated into a Time-Varying Almost Ideal Demand System (AIDS) including beef, pork, poultry, fish and seafood, eggs, dairy products, dried beans, and an ‘other meat’ composite. Expenditure elasticities generally become relatively more elastic post-recession for protein sources across all income quintiles, with the largest changes in beef and pork. The lowest income group exhibits the least change in own-price and in expenditure elasticities, likely an indication of already limited flexibility.
Journal: Applied Economics
Pages: 4615-4628
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593940
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593940
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Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4615-4628
Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Inkoo Lee
Author-X-Name-First: Inkoo
Author-X-Name-Last: Lee
Author-Name: Soon-Cheul Lee
Author-X-Name-First: Soon-Cheul
Author-X-Name-Last: Lee
Title: Explaining time variation in geographic price dispersion
Abstract:
The pattern of price dispersion significantly varies over time and across locations. Using a detailed dataset with product-level retail prices, we examine the role of time-varying factors in shaping the time variation of price dispersion. We find that price dispersion variation in an integrated region is mainly driven by oil prices, while the variation in a segmented region is attributed to dispersion in real income. We also find that dispersion in value-added tax rates explains a significant portion of price dispersion fluctuations in both geographic dimensions. This paper offers new evindence on the trade-off that exists for the role of time-varying factors as contributors to price dispersion variation by highlighting their relative importance across different dimensions of economic geography.
Journal: Applied Economics
Pages: 4629-4641
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593941
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593941
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Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4629-4641
Template-Type: ReDIF-Article 1.0
Author-Name: Rébecca Stekelorum
Author-X-Name-First: Rébecca
Author-X-Name-Last: Stekelorum
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Jamal Elbaz
Author-X-Name-First: Jamal
Author-X-Name-Last: Elbaz
Title: Transmission of CSR requirements in supply chains: investigating the multiple mediating effects of CSR activities in SMEs
Abstract:
In recent years, scholars have increasingly turned their attention to the separate areas of corporate social responsibility (CSR) and supply chain management (SCM). However, little scholarly attention has been paid to the transmission of CSR requirements from a small to medium-sized enterprises (SME) perspective. Drawing on institutional and innovation diffusion theories, this paper investigates to what extent the CSR requirements of customers influence the CSR activities of SMEs and their CSR requirements toward their own suppliers. Multiple mediation analysis was performed on data from a sample of 146,060 French SMEs. The findings indicate that the CSR requirements of customers have a direct negative effect on SMEs’ CSR requirements toward suppliers. However, the relationship becomes positive when we take into account the mediating role of the SMEs’ own CSR activities (i.e. economic, social and environmental activities). Furthermore, the study reveals that the indirect effect through economic CSR activities is the greatest, followed by social and then environmental CSR activities. Our main contribution is that implementing CSR activities within SMEs is a necessary step so that SMEs can be brokers in the transmission of CSR requirements in the supply chain.
Journal: Applied Economics
Pages: 4642-4657
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593942
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593942
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Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4642-4657
Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Wen Zhang
Author-X-Name-First: Wen-Wen
Author-X-Name-Last: Zhang
Author-Name: Basil Sharp
Author-X-Name-First: Basil
Author-X-Name-Last: Sharp
Author-Name: Shi-Chun Xu
Author-X-Name-First: Shi-Chun
Author-X-Name-Last: Xu
Title: Does economic growth and energy consumption drive environmental degradation in China’s 31 provinces? New evidence from a spatial econometric perspective
Abstract:
The panel data analysis points to economic and social factors contributing to NOx, PM2.5, PM10, SO2, and VOCs in China’s 31 provinces. The spatial correlation analysis using Global and Local Moran’s I values indicates the existence of a significant and positive spatial autocorrelation with respect to environment, economy and energy, and the high spatial correlation is evident in the eastern region, covering the northern part of Yangtze River Delta, Huaihai Economic Zone, and the lower reaches of the Yellow River Economic Belt. The empirical estimation is performed through spatial lag and spatial Durbin models. All emitted air pollutants in 31 provinces have significant spatial dependence and strong spillover effects. There is an inverted U-shaped relationship between emitted air pollutants (NOx, PM10, VOCs, and PM2.5) and per capita GDP, which follows the EKC hypothesis. The relationship between SO2 and per capita GDP does not follow the EKC hypothesis. There is a positive relationship between pollutant emissions and coal consumption, which is consistent with current studies for various countries like Canada, Denmark, UK and US and regions like New York State. However, the effects of science and technology investment on air pollutants are mostly positive, which is not as policy expected.
Journal: Applied Economics
Pages: 4658-4671
Issue: 42
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593943
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593943
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Handle: RePEc:taf:applec:v:51:y:2019:i:42:p:4658-4671
Template-Type: ReDIF-Article 1.0
Author-Name: Maxime Clémenceau
Author-X-Name-First: Maxime
Author-X-Name-Last: Clémenceau
Author-Name: Nils Soguel
Author-X-Name-First: Nils
Author-X-Name-Last: Soguel
Title: Does personal background influence a finance minister to cook the books? An investigation of creative accounting in Swiss cantons
Abstract:
This article aims to identify the factors influencing the use of creative accounting in the public sector. Its distinctive feature is that it sheds light on creative accounting when used, not to hide public deficits, but to conceal surpluses. It especially explores the impact of the finance minister’s (FM)’s background on the phenomenon. We take advantage of the quasi-experimental settings of the Swiss cantons in which the financial management act sets out the possibility of implementing certain accounting gimmicks, including mainly additional ‘depreciation’ charges. These charges, which are depreciations in name only, enable the FM to artificially inflate expenses, thus increasing the deficit or reducing the surplus. Our panel data set of the 26 cantons over the period 1980–2012 includes a new data set of creative accounting and of 116 cantonal FMs. Our results indicate that the FMs cook the books irrespective of their personal or ideological background with the exception that trained economists tend to apply creative accounting more. Additionally, stringent fiscal rules urge FMs towards more surplus-hiding accounting.
Journal: Applied Economics
Pages: 941-953
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208360
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208360
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Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:941-953
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro de Araujo
Author-X-Name-First: Pedro
Author-X-Name-Last: de Araujo
Author-Name: Kirby I. Leyshon
Author-X-Name-First: Kirby I.
Author-X-Name-Last: Leyshon
Title: The impact of international information disclosure requirements on market discipline
Abstract:
Financial regulators are challenged with finding the most efficient and effective ways to monitor banks given an expanding and complex international financial system. Market discipline has grown in importance as a way to discourage banks from taking on unnecessary risk. One of the main drivers of market discipline is information disclosure. While the literature on market discipline is expansive, there are no known studies on the impact of individual information disclosure requirements on market discipline. Our study investigates which specific disclosure requirements influence financial investors to discipline banks and which do not. We find that information disclosure requirements primarily reduce or have no impact on market discipline practices.
Journal: Applied Economics
Pages: 954-971
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208361
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208361
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Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:954-971
Template-Type: ReDIF-Article 1.0
Author-Name: David Matesanz Gomez
Author-X-Name-First: David
Author-X-Name-Last: Matesanz Gomez
Author-Name: Hernan J. Ferrari
Author-X-Name-First: Hernan J.
Author-X-Name-Last: Ferrari
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Author-Name: Guillermo J. Ortega
Author-X-Name-First: Guillermo J.
Author-X-Name-Last: Ortega
Title: Synchronization and diversity in business cycles: a network analysis of the European Union
Abstract:
In this article, we use a correlation matrix and its internal networks to analyse business cycle synchronization across Europe since 2000. This methodology allows us to summarize individual country interactions and co-movements while also capturing the existing heterogeneity of connectivity within the European economic system. Our results indicate that synchronization of the euro zone countries remained stable from 1999 until the current financial crisis, after which co-movements increased sharply and synchronization rose to the highest in the time sample. By endogenously identifying clusters of countries with close connections in their business cycle, we also refute the commonly accepted notion of identifiable core and peripheral euro zone countries.
Journal: Applied Economics
Pages: 972-986
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210765
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210765
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Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:972-986
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bünnings
Author-X-Name-First: Christian
Author-X-Name-Last: Bünnings
Title: Does new health information affect health behaviour? The effect of health events on smoking cessation
Abstract:
This article empirically assesses the role of new health information in the decision to quit smoking. Using individual level data from the Swiss Household Panel, health information is proxied by three different types of health events: physical health problems, mental disorders, and accidents. Exploiting retrospectively reported information on smoking behaviour, smoking cessation is modelled using a discrete time hazard model that also accounts for estimation problems arising from almost quasi-complete separation in the data. The empirical results yield robust evidence that general health problems increase the probability of instantaneous smoking cessation. Differentiating between the type of health event reveals that the overall effect is mainly driven by physical health events.
Journal: Applied Economics
Pages: 987-1000
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210766
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210766
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Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:987-1000
Template-Type: ReDIF-Article 1.0
Author-Name: Chung Choe
Author-X-Name-First: Chung
Author-X-Name-Last: Choe
Author-Name: Marjorie L. Baldwin
Author-X-Name-First: Marjorie L.
Author-X-Name-Last: Baldwin
Title: Duration of disability, job mismatch and employment outcomes
Abstract:
Workers with disabilities have functional limitations that affect their productivity in some, but not necessarily all, jobs. Workers who find a job that is a good match for their functional limitations (i.e. a job where their limitations have little or no impact on important job functions) should expect better employment outcomes (e.g. higher wages, longer job tenure) than workers with similar disabilities who are mismatched in their jobs. Merging data from the Survey of Income and Program Participation with O*Net data on job demands, we construct two continuous measures of job mismatch for workers with physical disabilities. We then extend the literature on disability and employment by exploring relationships between duration of disability, job mismatch, wages and hours worked. The results indicate that workers with long durations of disability are employed in jobs that are a better match to their physical limitations than are similar workers with shorter durations of disability. And, workers who are mismatched earn lower wages and work fewer hours than their counterparts whose jobs are a better match. Overall, the findings suggest that disability employment policies should include systematic efforts to help workers with disabilities find good job matches.
Journal: Applied Economics
Pages: 1001-1015
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210767
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210767
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Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:1001-1015
Template-Type: ReDIF-Article 1.0
Author-Name: Seongjin Park
Author-X-Name-First: Seongjin
Author-X-Name-Last: Park
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Author-Name: Kellie Curry Raper
Author-X-Name-First: Kellie Curry
Author-X-Name-Last: Raper
Title: Modelling upstream and downstream market power in bilateral oligopoly
Abstract:
This article develops a general model that estimates market power exertion in a bilateral market relationship for processors and retailers where each may also have market power in their primary input market and output markets, respectively. Monte Carlo experiments are used to generate industry data for market structures such as perfect competition, monopoly, monopsony, bilateral imperfect competition with an integrated processor/retailer, bilateral imperfect competition with separate processor and retailer, and bilateral imperfect competition with four adjacent upstream and downstream markets. Then, new empirical industrial organization models are estimated using the data with models that match the market structure under which the data were generated (true) and with models that reflect alternative market structures (alternative). The general model is derived using the production function approach without imposing the fixed proportion assumption. Monte Carlo simulation results indicate that the general model is preferred to alternative models that presume competitive behaviour by processors in primary input procurement and by retailers in the output market. Results indicate that less flexible models lead to biased market power estimates in the presence of market power in the corresponding input and output markets.
Journal: Applied Economics
Pages: 1016-1031
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210768
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210768
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Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:1016-1031
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolin Lu
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Lu
Author-Name: Kun Guo
Author-X-Name-First: Kun
Author-X-Name-Last: Guo
Author-Name: Zhi Dong
Author-X-Name-First: Zhi
Author-X-Name-Last: Dong
Author-Name: Xuan Wang
Author-X-Name-First: Xuan
Author-X-Name-Last: Wang
Title: Financial development and relationship evolvement among money supply, economic growth and inflation: a comparative study from the U.S. and China
Abstract:
With the rapid development of financial markets, economic financialization degree can no longer be ignored for its influence on the relationship among money supply, economic growth and inflation. Combined with the horizontal comparison of China, this article concentrates on the financial development and evolution from the period of industrialization to economic financialization in the U.S., systematic and comprehensive analysis is first done on the variation of overall economic operation. Then impulse response function based on VAR model is applied to study the dynamic influence of economic financialization degree on the relationship evolvement. The empirical results show that economic financialization makes good explanation of the deviating phenomenon among money supply, economic growth and inflation, and the interactive relationship between fictitious economy and real economy is becoming closer and closer. Furthermore, compared to the U.S., China still belongs to the process of transforming from the period of industrialization to economic financialization.
Journal: Applied Economics
Pages: 1032-1045
Issue: 10
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1210776
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1210776
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Handle: RePEc:taf:applec:v:49:y:2017:i:10:p:1032-1045
Template-Type: ReDIF-Article 1.0
Author-Name: Jaqueline Terra Moura Marins
Author-X-Name-First: Jaqueline Terra Moura
Author-X-Name-Last: Marins
Author-Name: Gustavo Silva Araujo
Author-X-Name-First: Gustavo Silva
Author-X-Name-Last: Araujo
Author-Name: José Valentim Machado Vicente
Author-X-Name-First: José Valentim Machado
Author-X-Name-Last: Vicente
Title: Do central bank foreign exchange interventions affect market expectations?
Abstract:
The aim of this article is to study the impact of the Brazilian central bank swap interventions on the FX market from 2006 to 2013. In this period, these nontraditional interventions were the main FX instrument of the Brazilian Government. Since the central bank operates through a sequence of daily interventions in most of the period, we employ the event study method, which is appropriate to investigate cumulative impact of intervention episodes. We analyse the effects on the risk neutral distribution of BRL-USD exchange rate, which incorporates economic valuation besides the likelihoods. We investigate both changes in level and in the dynamics of the moments. Our tests indicate that interventions have little effects on the exchange rate distribution. We only find evidences of some impact on the dynamics of the mean, volatility and skewness over long horizons when the central bank takes short positions on the exchange rate.
Journal: Applied Economics
Pages: 3017-3031
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1248283
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248283
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Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3017-3031
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: James W. Saunoris
Author-X-Name-First: James W.
Author-X-Name-Last: Saunoris
Title: The nexus of white collar crimes: shadow economy, corruption and uninsured motorists
Abstract:
This article empirically examines the nexus of three white collar crimes: shadow economy, corruption and uninsured motorists. Whereas the shadow economy–corruption linkage has been studied, the linkages with uninsured motorists have not been formally studied. Results, based on US data and accounting for possible bidirectional causalities, show complementarity between shadow economy and corruption and between uninsured motorists and the shadow economy. The magnitude of the impact of uninsured motorists on the shadow economy is greater than that of corruption. In other findings, shadow economy was lower in most prosperous states and in states that did not impose a sales tax.
Journal: Applied Economics
Pages: 3032-3044
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1251570
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251570
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Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3032-3044
Template-Type: ReDIF-Article 1.0
Author-Name: Nolan Kopkin
Author-X-Name-First: Nolan
Author-X-Name-Last: Kopkin
Title: Does racial prejudice affect black entrepreneurship?: evidence exploiting spatial differences in prejudicial attitudes
Abstract:
This article explores the relationship between racial prejudice towards blacks and the black-white self-employment rate gap and provides the first direct empirical evidence that racial prejudice negatively impacts black self-employment, particularly in high start-up cost industries. To perform this analysis, I construct a measure of prejudicial attitudes using responses from the General Social Survey and estimate the relationship between self-employment and this index using the American Community Survey. I find that an amount of prejudice equal to the difference in least and most prejudiced census divisions increases the black-white self-employment rate gap in high start-up cost industries by 10.4–16.8%, depending upon whether parental self-employment is controlled for, and represents the entire impact of racial prejudice on the black-white self-employment rate gap. Additionally, racial prejudice widens the black-white self-employment income gap by between 6.4% and 8.2% in my full specification, dependent upon how income is measured. Evidence indicates that racial prejudice is causing blacks difficulty in financing their businesses. The results presented are robust to various modelling and data assumptions.
Journal: Applied Economics
Pages: 3045-3066
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254336
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254336
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Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3045-3066
Template-Type: ReDIF-Article 1.0
Author-Name: Kulabutr Komenkul
Author-X-Name-First: Kulabutr
Author-X-Name-Last: Komenkul
Author-Name: Mohamed Sherif
Author-X-Name-First: Mohamed
Author-X-Name-Last: Sherif
Author-Name: Bing Xu
Author-X-Name-First: Bing
Author-X-Name-Last: Xu
Title: IPOs’ signalling effects for speculative stock detection: evidence from the Stock Exchange of Thailand
Abstract:
Using a unique data set from the Thai stock market about the so-called, ‘Turnover List (TOL)’ of speculative stocks spanning the period 2004–2012, we investigate and provide new evidence on the relationship between IPOs’ pricing effects and subsequent classification as speculative investments. To be more specific, we examine the signalling effects for the detection of speculative stocks in relation to the degree of their prior IPOs underpricing. We also employ the market-feedback hypothesis to investigate this signalling process. Our results reveal a significant positive relationship between the magnitudes of the IPO underpricing and the probability of an IPO firm being classified officially as speculative on the TOL. Furthermore, we find that a 6-month abnormal return after going public increases the probability of speculative dealing in the IPOs. Next, we consider all listed firms in the Thai stock market and highlight the role of both abnormal return and trading volume in the transmission of probability for appearing on the TOL. In addition, we find that IPOs and non-dividend paying companies further increase the risk of being on the TOL.
Journal: Applied Economics
Pages: 3067-3085
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254338
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254338
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Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3067-3085
Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Maennig
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Maennig
Author-Name: Christopher Vierhaus
Author-X-Name-First: Christopher
Author-X-Name-Last: Vierhaus
Title: Winning the Olympic host city election: key success factors
Abstract:
This article examines 147 variables’ potential to discriminate successful from unsuccessful Olympic bids. Our stepwise, rank-ordered logistic regression model includes 10 determinants supporting the contention that economic, political and sports/Olympic factors are important for winning the host city election. IOC members favour cities if more than 2/3 of the population support the bid, but disfavour bidding cities of fewer than 2.5 million inhabitants and bids lacking a sufficient number of existing stadiums. Hosts are characterized by larger markets and higher medium-term growth economies. Olympic bids that follow a political liberalization are rewarded with additional votes.
Journal: Applied Economics
Pages: 3086-3099
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254339
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254339
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Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3086-3099
Template-Type: ReDIF-Article 1.0
Author-Name: Prabal K. De
Author-X-Name-First: Prabal K.
Author-X-Name-Last: De
Author-Name: Priya Nagaraj
Author-X-Name-First: Priya
Author-X-Name-Last: Nagaraj
Title: Effects of foreign equity participation on recipient firm exports
Abstract:
We offer new evidence on the role of foreign investment in domestic firms’ export decisions, both at intensive and extensive margins, using balance sheet data from a panel of manufacturing firms in India. In contrast to the existing literature, we analyse the effect of foreign investment at different levels, where the levels correspond to percentages of foreign equity. We use a selection procedure to control for the potential self-selection of firms into export participation. Though we do find that foreign investment increases a domestic firm’s likelihood to export, firms with majority foreign equity are found to serve domestic market more, once the self-selection is accounted for.
Journal: Applied Economics
Pages: 3100-3113
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254340
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254340
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Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3100-3113
Template-Type: ReDIF-Article 1.0
Author-Name: Anh Tuan Bui
Author-X-Name-First: Anh Tuan
Author-X-Name-Last: Bui
Author-Name: Cuong Viet Nguyen
Author-X-Name-First: Cuong Viet
Author-X-Name-Last: Nguyen
Author-Name: Thu Phuong Pham
Author-X-Name-First: Thu Phuong
Author-X-Name-Last: Pham
Title: Poverty among ethnic minorities: the transition process, inequality and economic growth
Abstract:
This article investigates the process of reducing poverty in ethnic minority households. Using two recent Vietnam household surveys, we find that ethnic minority households are more likely to be persistently poor and less likely to be persistently non-poor than ethnic majority households. The within-group component generated by the variation in income within each ethnicity group explains more than 90% of the change in total inequality. Income redistribution plays an important role in decreasing the poverty gap and decreasing poverty severity. Different ethnic groups have different poverty patterns, which should be noted when designing policies to alleviate poverty and inequality.
Journal: Applied Economics
Pages: 3114-3128
Issue: 31
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254341
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254341
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Handle: RePEc:taf:applec:v:49:y:2017:i:31:p:3114-3128
Template-Type: ReDIF-Article 1.0
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Author-Name: Xiyuan Ma
Author-X-Name-First: Xiyuan
Author-X-Name-Last: Ma
Title: Oil shocks and stock volatility: new evidence via a Bayesian, graph-based VAR approach
Abstract:
This article examines the temporal dependence between three oil shocks and realized volatility in the stock markets of G20 countries between 1994 and 2019. By applying a novel, graphical, Bayesian VAR (BGVAR) model, we calculate unidirectional linkages of oil and stock volatility with a full and segmented sample. The results suggest an overall causality from stock volatility to oil shocks. For certain short, specific periods, the causal direction reverses. Depending on the country and the source of an oil shock, the magnitude and type of the effect can vary considerably. Specific oil-market shocks occur most often in our full sample. In a time-varying structure, oil supply shocks’ impact on stock volatility is more prominent, and net oil-importing countries’ responses to these shocks are greater than for oil-exporting countries. In addition, we find that relationship dynamics can capture market information, such as global economic growth during the 2008–2009 financial crisis.
Journal: Applied Economics
Pages: 1163-1180
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659497
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659497
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Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1163-1180
Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Adrian Licht
Author-X-Name-First: Adrian
Author-X-Name-Last: Licht
Title: Dynamic conditional score models: a review of their applications
Abstract:
In this paper, applications of dynamic conditional score (DCS) models are reviewed and those models are discussed in relation to classical time series models from the literature. DCS models are robust to outliers, which improves their statistical performance compared to classical models. Three applications are presented in order to compare the statistical performances of DCS and classical models in three very different contexts: (i) The QAR (quasi-autoregressive) plus Beta-t-EGARCH (exponential autoregressive conditional heteroscedasticity) model is presented, which is a score-driven expected return plus volatility model. This model is used for daily returns on the DAX (Deutscher Aktienindex) equity index for the period of January 1988 to December 2017. (ii) The score-driven local level and seasonality plus Beta-t-EGARCH model is presented, which is used for daily AFN/USD (Afghan Afghani/United States Dollar) currency exchange rates for the period of March 2007 to July 2017. (iii) The Seasonal-t-QVAR (quasi-vector autoregressive) model is presented, which is a score-driven multivariate dynamic model of location. For this model, monthly US inflation rate and US unemployment rate are used for the period of January 1948 to December 2017. For all applications, the statistical performance of each DCS model is superior to that of a corresponding classical alternative.
Journal: Applied Economics
Pages: 1181-1199
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659498
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659498
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Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1181-1199
Template-Type: ReDIF-Article 1.0
Author-Name: Bo Wang
Author-X-Name-First: Bo
Author-X-Name-Last: Wang
Author-Name: Haoran Li
Author-X-Name-First: Haoran
Author-X-Name-Last: Li
Title: The time-varying characteristics of the Chinese financial cycle and impact from the United States
Abstract:
Although there have been many empirical studies about the financial cycle since the financial crisis of 2008, few have analysed the structural changes in the Chinese financial cycle over time. The Chinese financial development process is short, and it is difficult to obtain accurate results on the measurement of the financial cycle. Based on wavelet analysis, this paper analyzes the time-varying characteristics of the Chinese financial cycle and the relationship between the financial and business cycles. In addition, we measure the impact from the United States. This paper draws three conclusions. Firstly, in terms of the characteristics of cycles, the existence of Chinese business cycle and financial cycle is proved, while the credit cycle, leverage cycle, stock market cycle and property cycle are quite different. Specifically, China has a 5.8-year credit cycle, an 8-year stock market cycle, 3.4-year and 12-year business cycles and a 15-year leverage cycle. Secondly, the financial cycles can serve as leading indicators of the business cycle, though the relationships between them are change overtime. Finally, the United States has a significant impact on the Chinese financial cycle with a ‘decoupling-recoupling’ effect, which is mainly reflected in the leverage cycle and the stock market cycle.
Journal: Applied Economics
Pages: 1200-1218
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659500
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659500
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Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1200-1218
Template-Type: ReDIF-Article 1.0
Author-Name: Liu Haiyue
Author-X-Name-First: Liu
Author-X-Name-Last: Haiyue
Author-Name: Aqsa Manzoor
Author-X-Name-First: Aqsa
Author-X-Name-Last: Manzoor
Title: The impact of OFDI on the performance of Chinese firms along the ‘Belt and Road’
Abstract:
Using feasible generalized least squares (FGLS) and ordinary least square (OLS) estimations on a dataset of 1208 outward Foreign Direct Investment (OFDI) events by Chinese-listed firms from 2004 to 2015, this paper investigated the impact of OFDI on the performance of Chinese firms, from which it was found that Chinese firms that had invested in Belt and Road Initiative (BRI) countries were more productive than those that had invested in non-BRI countries. However, OFDI by both state-owned enterprises (SOE) and non-SOE were on average found to be negatively related to productivity and profitability, with state-owned enterprises (SOEs) having worse performance in terms of total factor productivity (TFP) than non-SOEs. A further subsample analysis found that Chinese firms that were investing in developing economies were performing better than those that had invested in developed ones; firms investing in sub-regions like Middle East and South Africa, East Asia and the Pacific, Latin America and the Caribbean experienced a positive post-OFDI TFP but investment in other regions had either insignificant or negatively significant coefficients, indicating that firms in general had poor post-OFDI performances. The findings in this paper are informative for developing going-global strategies for both firms and government authorities.
Journal: Applied Economics
Pages: 1219-1239
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659501
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659501
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Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1219-1239
Template-Type: ReDIF-Article 1.0
Author-Name: Manthos D. Delis
Author-X-Name-First: Manthos D.
Author-X-Name-Last: Delis
Author-Name: Iftekhar Hasan
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Hasan
Author-Name: Nikolaos Mylonidis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Mylonidis
Title: Foreign bank ownership and income inequality: empirical evidence
Abstract:
Using country-level panel data over 1995–2013 on within-country income inequality and foreign bank presence, this paper establishes a positive relation between the two, running from higher foreign bank presence to income inequality. Given that foreign bank participation increased by 62% over the period 1995 to 2013, our baseline results imply a 5.8% increase in the Gini coefficient on average over this period, ceteris paribus. These results are robust to the inclusion of country and year fixed effects and to the use of restrictions on foreign bank entry in the host countries as an instrumental variable. We show that this positive effect is channelled through the lack of greenfield entry and the associated lower levels of competition.
Journal: Applied Economics
Pages: 1240-1258
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659931
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659931
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Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1240-1258
Template-Type: ReDIF-Article 1.0
Author-Name: Goblan Al Gahtani
Author-X-Name-First: Goblan
Author-X-Name-Last: Al Gahtani
Author-Name: Carlo Andrea Bollino
Author-X-Name-First: Carlo Andrea
Author-X-Name-Last: Bollino
Author-Name: Simona Bigerna
Author-X-Name-First: Simona
Author-X-Name-Last: Bigerna
Author-Name: Axel Pierru
Author-X-Name-First: Axel
Author-X-Name-Last: Pierru
Title: Estimating the household consumption function in Saudi Arabia: an error correction approach
Abstract:
We estimate a micro-founded life-cycle consumption model for Saudi Arabia over the period 1970–2017 using error correction model procedures. Dynamic adjustments are significant, and both income and wealth are found to have significant effects, with a long-run marginal propensity to consume out of the income of 0.95 and out of the wealth of 0.06. The sensitivity of consumption to income and wealth, as well as the estimated short-term effects of price and real interest rate, are consistent with the rapidly growing Saudi economy. By capturing the key determinants of the life-cycle model, our approach is useful for the design of macroeconomic policy. We estimate the impact of the recent VAT reform.
Journal: Applied Economics
Pages: 1259-1271
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659933
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659933
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Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1259-1271
Template-Type: ReDIF-Article 1.0
Author-Name: M. Billio
Author-X-Name-First: M.
Author-X-Name-Last: Billio
Author-Name: M. Donadelli
Author-X-Name-First: M.
Author-X-Name-Last: Donadelli
Author-Name: G. Livieri
Author-X-Name-First: G.
Author-X-Name-Last: Livieri
Author-Name: A. Paradiso
Author-X-Name-First: A.
Author-X-Name-Last: Paradiso
Title: On the role of domestic and international financial cyclical factors in driving economic growth
Abstract:
We investigate the effects of (domestic and international) financial cyclical factors on the US business cycle over the period 1890–2013 using an augmented stochastic version of the neoclassical growth model. In our setting, financial factors enter as determinants of the total factor productivity cyclical pattern. By means of static and dynamic estimations we find that (i) the inclusion of financial cyclical factors improves the model’s performance; (ii) the sensitivity of economic growth to financial factors is time-varying; (iii) domestic financial factors have a key role in explaining short-run output fluctuations only in the first half of the 20th century; (iv) US business cycle fluctuations have been mainly driven by global financial factors (i.e., financial integration) over the last three decades.JEL CODES: O40, E32, C32
Journal: Applied Economics
Pages: 1272-1297
Issue: 11
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1659934
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659934
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Handle: RePEc:taf:applec:v:52:y:2020:i:11:p:1272-1297
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Gechert
Author-X-Name-First: Sebastian
Author-X-Name-Last: Gechert
Author-Name: Rafael Mentges
Author-X-Name-First: Rafael
Author-X-Name-Last: Mentges
Title: Financial cycles and fiscal multipliers
Abstract:
We show that fiscal multiplier estimations may be biased by movements in asset and credit markets, as they facilitate spurious correlations of changes in cyclically adjusted revenues and spending with output growth via an identification bias and an omitted variable bias, thus overstating episodes of expansionary consolidations and downplaying contractionary consolidations. When controlling for asset and credit market movements in otherwise standard approaches to identification, we find multipliers to increase on average by 0.3–1 units. Fiscal consolidations are thus more likely to be contractionary and more harmful to growth than expected by some strands of the existing literature.
Journal: Applied Economics
Pages: 2635-2651
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403563
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403563
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Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2635-2651
Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Carlsson
Author-X-Name-First: Magnus
Author-X-Name-Last: Carlsson
Author-Name: Luca Fumarco
Author-X-Name-First: Luca
Author-X-Name-Last: Fumarco
Author-Name: Dan-Olof Rooth
Author-X-Name-First: Dan-Olof
Author-X-Name-Last: Rooth
Title: Ethnic discrimination in hiring, labour market tightness and the business cycle - evidence from field experiments
Abstract:
Several studies using observational data suggest that ethnic discrimination increases in downturns of the economy. We investigate whether ethnic discrimination depends on labour market tightness using data from correspondence studies. We utilize three correspondence studies of the Swedish labour market and two different measures of labour market tightness. These two measures produce qualitatively similar results, and, opposite to the observational studies, suggest that ethnic discrimination in hiring decreases in downturns of the economy.
Journal: Applied Economics
Pages: 2652-2663
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406653
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406653
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Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2652-2663
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Long
Author-X-Name-First: Wei
Author-X-Name-Last: Long
Title: Does longer incarceration deter or incapacitate crime? Evidence from Truth-in-Sentencing reform
Abstract:
This article evaluates how Truth-in-Sentencing (TIS) laws impact both violent and property crimes through mandating violent offenders to serve a substantial proportion of sentenced terms before being eligible to release to community supervision. Focusing on states with effective TIS laws, I utilize the difference-in-differences design to investigate the treatment effect of TIS on crime. I observe statistically significant decline in both violent and property crimes in TIS states. A series of placebo tests confirm the robustness of the estimates and inferences. The dynamic impact of TIS is heterogeneous among the seven categories of violent and property crimes in TIS states: murder and robbery rates decline almost immediately after TIS, while property crime takes longer time to exhibit significant decline.
Journal: Applied Economics
Pages: 2664-2676
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406654
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406654
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Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2664-2676
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Román Ferrer
Author-X-Name-First: Román
Author-X-Name-Last: Ferrer
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Ilham Haouas
Author-X-Name-First: Ilham
Author-X-Name-Last: Haouas
Title: Is the tourism–economic growth nexus time-varying? Bootstrap rolling-window causality analysis for the top 10 tourist destinations
Abstract:
This article explores the time-varying causal nexus between tourism development and economic growth for the top 10 tourist destinations in the world, namely China, France, Germany, Italy, Mexico, the Russian Federation, Spain, Turkey, the UK and the United States of America, over the period 1990–2015. To that end, a bootstrap rolling window Granger causality approach based on the modified Granger causality test is used. A new index for tourism activity which combines via principal component analysis the commonly used tourism indicators is also employed. The results of the bootstrap rolling window causality tests reveal that the causal relations between tourism and economic growth vary substantially over time and across countries in terms of both magnitude and direction. It is shown that the causal linkages tend to be more pronounced for a large group of countries following the global financial crisis of 2008. Additionally, Germany, France and China clearly stand out as the countries with the weakest causal nexus, while the UK, Italy and Mexico emerge as the countries that have the strongest causal links. These results have particularly important implications for policymakers.
Journal: Applied Economics
Pages: 2677-2697
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406655
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406655
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Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2677-2697
Template-Type: ReDIF-Article 1.0
Author-Name: Laura M. Crispin
Author-X-Name-First: Laura M.
Author-X-Name-Last: Crispin
Author-Name: Dimitrios Nikolaou
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Nikolaou
Title: Work and play take school time away? The impact of extracurricular and work time on educational time for live-at-home college students
Abstract:
We use data from the 2003–2014 American Time Use Survey to estimate the effects of time allocated to work and extracurriculars on time spent in educational activities (class and homework) for live-at-home college students, who make up a large share of the college population. Our instrumental variables strategy indicates that students are more likely to substitute time away from homework than from class, and that the effects are generally stronger for work than for extracurriculars. These findings, which remain even after correcting for selection on unobservables through non-parametric matching methods, show that work leads to decreases in the amount of time spent in class by 47 min and on homework by 56 min, whereas extracurriculars lead to a loss of 22 min of homework time. Thus, while after-school activities (extracurriculars and work) may be beneficial with respect to human capital development, they may also have a counteracting, unintended effect due to students’ substitution away from educational pursuits.
Journal: Applied Economics
Pages: 2698-2718
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406656
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406656
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Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2698-2718
Template-Type: ReDIF-Article 1.0
Author-Name: Markum Reed
Author-X-Name-First: Markum
Author-X-Name-Last: Reed
Author-Name: Alison Watts
Author-X-Name-First: Alison
Author-X-Name-Last: Watts
Title: Product quality and competition: evidence from the broadband industry
Abstract:
Access to high-quality broadband internet is important in many different respects such as in communication, education, commerce and information acquisition. We investigate the relationship between the number of broadband providers in an area and the quality of broadband service provided where download speed is used as a proxy for quality. We find that increased competition in an area positively affects the access to fast download speeds. This finding is robust to three different top download speeds tested. Additionally, a theoretical model is provided which shows that competition can decrease the profits associated with offering slow speeds; this gives an incentive for providers to offer higher speeds as a way to increase profits.
Journal: Applied Economics
Pages: 2719-2732
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406657
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406657
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Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2719-2732
Template-Type: ReDIF-Article 1.0
Author-Name: Lara Gardner
Author-X-Name-First: Lara
Author-X-Name-Last: Gardner
Author-Name: Sharmila Vishwasrao
Author-X-Name-First: Sharmila
Author-X-Name-Last: Vishwasrao
Title: Physicians’ use of medical technology: an analysis of the introduction and subsequent failure of drug-eluting stents
Abstract:
Using data on cardiac patients in Florida hospitals from 2003 to 2007, we analyse the adoption and deadoption of a major new medical technology, drug-eluting stents (DESs). The Food and Drug Administration approved DESs in April 2003 and physicians rapidly adopted the new technology. In March 2006, a presentation was made at the American Cardiology Conference which showed that patients receiving DES in real-world settings suffered higher rates of mortality and myocardial infarction than those receiving stents without drugs. We examine the utilization of DES from April 2003 to the end of 2007. Using a hospital fixed-effects model, we find that board-certified and top-trained physicians were initially quicker to adopt DES. Over time, this effect dissipated and top-trained physicians were less likely to use DES by the time new clinical trials indicated they could be problematic. After the news, board-certified and top-ranked physicians were less likely to change their behaviour. Physicians’ own experience also contributes to the use of technology and the effects are stronger for non-board-certified physicians. We conclude that even within hospitals, physician training and experience play an important role in explaining differences in rates of technology use.
Journal: Applied Economics
Pages: 2733-2745
Issue: 24
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1406658
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1406658
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Handle: RePEc:taf:applec:v:50:y:2018:i:24:p:2733-2745
Template-Type: ReDIF-Article 1.0
Author-Name: Stelios Bekiros
Author-X-Name-First: Stelios
Author-X-Name-Last: Bekiros
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Title: Sovereign bond market dependencies and crisis transmission around the eurozone debt crisis: a dynamic copula approach
Abstract:
We examine the dependency between the European government bond markets around the recent sovereign debt crisis. A dynamic copula approach is used to model the time-varying dependence structure of those government bond markets, evaluate the nature and strength of their dependencies over time, and gauge the transmission of the crisis shocks. Our results can be summarized as follows: i) the eurozone sovereign bond markets under consideration have a significant and positive dependence with the Greek and the EMU benchmark sovereign bond markets; ii) the dynamic-BB7 copula function best describes the dependence structure between these sovereign bond markets and provides evidence of asymmetric tail dependence; iii) the conditional probability of crisis transmission from Greece to other eurozone countries is higher than the other way around; and iv) Greece is the most vulnerable country when the eurozone entered into the sovereign debt crisis.
Journal: Applied Economics
Pages: 5031-5049
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1470313
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1470313
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Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5031-5049
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Santín
Author-X-Name-First: Daniel
Author-X-Name-Last: Santín
Author-Name: Gabriela Sicilia
Author-X-Name-First: Gabriela
Author-X-Name-Last: Sicilia
Title: Does preschool education attendance matter? Evidence from a natural experiment in Spain
Abstract:
The non-compulsory and non-free of charge character of preschool education level before 3 years old in Spain raises some doubts about the exogenous nature of this variable. This article provides new evidence about the impact of preschool years on educational outcomes by exploiting a peculiar Spanish database that supplies information on two classrooms at fourth grade in primary schools where students were randomly allocated into each group. Using an identification strategy that reproduces a natural experiment, we find that belonging to the group with more average years of preschool education significantly and positively impacts on fourth-grade students’ average outcomes. Particularly, an increase of one standard deviation in the difference in years of preschool attendance results in an increase of 0.16 (0.13) standard deviations in the group achievement for mathematics (reading). In view of the importance of preschool education and considering that preschool attendance before 3 years old is related with socio-economic variables, we conclude that extending free preschool education to the 2-year-old age group in Spain should be considered especially for students in families with less favourable backgrounds.
Journal: Applied Economics
Pages: 5050-5063
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1470314
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1470314
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Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5050-5063
Template-Type: ReDIF-Article 1.0
Author-Name: Petr Parshakov
Author-X-Name-First: Petr
Author-X-Name-Last: Parshakov
Author-Name: Dennis Coates
Author-X-Name-First: Dennis
Author-X-Name-Last: Coates
Author-Name: Marina Zavertiaeva
Author-X-Name-First: Marina
Author-X-Name-Last: Zavertiaeva
Title: Is diversity good or bad? Evidence from eSports teams analysis
Abstract:
We use eSports data to construct an empirical model to measure the effect of diversity on team performance. Different kinds of diversities are considered, diversity of culture, diversity of language and diversity of skill. Our main results are that cultural diversity is beneficial for team performance: the absence of diversity reduces performance by 30%. However, language and experience diversity negatively affect results. Taking the difference in the results into account, we conclude that firms should not thoughtlessly maximize team diversity: different kinds of diversity have different integration and communication costs.
Journal: Applied Economics
Pages: 5064-5075
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1470315
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1470315
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Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5064-5075
Template-Type: ReDIF-Article 1.0
Author-Name: Farid Khan
Author-X-Name-First: Farid
Author-X-Name-Last: Khan
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Kai Sun
Author-X-Name-First: Kai
Author-X-Name-Last: Sun
Title: Does R&D spur productivity growth in Australia’s broadacre agriculture? A semi-parametric smooth coefficient approach
Abstract:
This article analyses the role of research and development (R&D) in Australia’s broadacre farming by using the semi-parametric smooth coefficient model. While the conventional production function approach only captures the direct effects of R&D, this methodology captures both the direct impact of a change in R&D on output and the indirect impact through changes in efficiency of use of factor inputs in the production process. Moreover, technical inefficiency is introduced in the model allowing it as a function of R&D. Using a unique state-level dataset covering the period 1995–2007, this empirical study finds that once both the direct and indirect effects are taken into consideration, R&D investments significantly increase outputs. The results also show that there are substantial variations in the effects of R&D on output across the state-level average farm through technology parameters as well as through technical inefficiency. Such variations need to be taken into account when designing policies for investing public R&D in agriculture.
Journal: Applied Economics
Pages: 5076-5093
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1470316
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1470316
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Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5076-5093
Template-Type: ReDIF-Article 1.0
Author-Name: Osama Ahmed
Author-X-Name-First: Osama
Author-X-Name-Last: Ahmed
Title: Vertical price transmission in the Egyptian tomato sector after the Arab Spring
Abstract:
This study assesses price transmission along the Egyptian tomato food marketing chain in the period that followed the Arab Spring, which accentuated economic precariousness in Egypt. Static and time-varying copula methods are used for this purpose. Results suggest a positive link between producer, wholesaler and retailer tomato prices. Such positive dependence is characterized by asymmetries during extreme market events that lead price increases to be transferred more completely along the supply chain than price declines.
Journal: Applied Economics
Pages: 5094-5109
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1472739
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1472739
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Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5094-5109
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Bazen
Author-X-Name-First: Stephen
Author-X-Name-Last: Bazen
Author-Name: Jean-Marie Cardebat
Author-X-Name-First: Jean-Marie
Author-X-Name-Last: Cardebat
Title: Forecasting Bordeaux wine prices using state-space methods
Abstract:
Generic Bordeaux red wine (basic claret) can be regarded as being similar to an agricultural commodity. Production volumes are substantial, they are traded at high frequency and the quality of the product is relatively homogeneous. Unlike other commodities and the top-end wines (which represent only 3% of the traded volume), there is no futures market for generic Bordeaux wine. Reliable forecasts of prices can to large extent replace this information deficiency and improve the functioning of the market. We use state-space methods with monthly data to obtain a univariate forecasting model for the average price. The estimates highlight the stochastic trend and the seasonality present in the evolution of the price over the period 1999 to 2016. The model predicts the path of wine prices out of sample reasonably well, suggesting that this approach is useful for making reasonably accurate forecasts of future price movements.
Journal: Applied Economics
Pages: 5110-5121
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1472740
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1472740
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Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5110-5121
Template-Type: ReDIF-Article 1.0
Author-Name: Shuddhasattwa Rafiq
Author-X-Name-First: Shuddhasattwa
Author-X-Name-Last: Rafiq
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Pasquale M Sgro
Author-X-Name-First: Pasquale M
Author-X-Name-Last: Sgro
Title: Energy, unemployment and trade
Abstract:
This article investigates the dynamic relationships among sectoral economic activities, macro expenditure patterns, renewable and non-renewable energy consumption and unemployment in 41 countries from 1980 to 2014. The state of the art econometric techniques, both linear and non-linear panel and time series estimation techniques are used. The results show that industrialization, services sector, government expenditure and trade openness play a positive role in reducing unemployment, while agriculture and renewable energy consumption increase unemployment. This might be, in part, due to recent technological advancements and large capital intensive investments in agriculture and renewable energy sectors. Therefore, dedicated social and labour market policies need to be adopted to complement greening economic policies.
Journal: Applied Economics
Pages: 5122-5134
Issue: 47
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1472741
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1472741
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Handle: RePEc:taf:applec:v:50:y:2018:i:47:p:5122-5134
Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Colombo
Author-X-Name-First: Emilio
Author-X-Name-Last: Colombo
Author-Name: Valentina Rotondi
Author-X-Name-First: Valentina
Author-X-Name-Last: Rotondi
Author-Name: Luca Stanca
Author-X-Name-First: Luca
Author-X-Name-Last: Stanca
Title: Macroeconomic conditions and well-being: do social interactions matter?
Abstract:
We investigate the role played by social interactions in the transmission of the effects of macroeconomic conditions on well-being. Using survey data for a representative sample of Italian individuals, we find that social interactions play a dual role. On the one hand, the well-being of people who spend more time with their friends or go out more often is less sensitive to macroeconomic fluctuations. On the other hand, social interactions are negatively affected by worsening macroeconomic conditions, thus playing a relevant role in the transmission of macroeconomic shocks to subjective well-being. More specifically, the negative impact of downturns on the frequency of going out and active participation in associations significantly contributes to the adverse effects of recessions on satisfaction with life and with individual life domains.
Journal: Applied Economics
Pages: 3029-3038
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414935
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414935
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Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3029-3038
Template-Type: ReDIF-Article 1.0
Author-Name: Bo Chen
Author-X-Name-First: Bo
Author-X-Name-Last: Chen
Author-Name: Sayed Saghaian
Author-X-Name-First: Sayed
Author-X-Name-Last: Saghaian
Author-Name: Yuqing Zheng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Zheng
Title: Organic labelling, private label, and U.S. household demand for fluid milk
Abstract:
The U.S. fluid milk market has been experiencing two trends in the recent decade: the fast growth of private label milk and organic milk. Using the data from Nielsen Homescan Panel, we estimate a censored demand system to study the demand relations among types of milk differentiated by brand types and organic status. We find that sociodemographic factors still play important roles in household choice of milk types, and fluid milk, as a whole, is an inferior good. Moreover, as income increases, households are more likely to shift from buying conventional milk to organic milk and from private label conventional milk to branded conventional milk, as indicated by the asymmetric cross price elasticities. Corresponding implications for milk producers and marketers are discussed.
Journal: Applied Economics
Pages: 3039-3050
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414936
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414936
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Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3039-3050
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgia Giovannetti
Author-X-Name-First: Giorgia
Author-X-Name-Last: Giovannetti
Author-Name: Marco Sanfilippo
Author-X-Name-First: Marco
Author-X-Name-Last: Sanfilippo
Author-Name: Margherita Velucchi
Author-X-Name-First: Margherita
Author-X-Name-Last: Velucchi
Title: Diverse twins: analysing China’s impact on Italian and German exports using a multilevel quantile regressions approach
Abstract:
Germany and Italy are the largest manufacturing producers in Europe and export over 70% of their products to OECD countries. While they share many characteristics, they are also diverse in term of specialization and destination markets. Italy has a productive structure largely based on labour intensive sectors, while Germany is mainly specialized in high-tech goods. We study whether these characteristics make the two countries vulnerable in different ways to the competitive pressure by emerging economies, especially China, which experienced the strongest increase in export market share during the last decades. We discuss the impact of China on the export performance of Italy and Germany on OECD markets. Using data for the period 1995–2009, we implement a novel model to account for two important data characteristics: their hierarchical hidden structure (captured by a multilevel model) and the heterogeneity of the export shares (captured by a quantile approach). Results show that Chinese competition on Italy’s and Germany’s market shares differ by sectors, but, on average, Italy is not more vulnerable than Germany. These results are relevant for policy implications and for an ex-post analysis of the ‘best response’ to the Chinese competition.
Journal: Applied Economics
Pages: 3051-3065
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414937
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414937
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Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3051-3065
Template-Type: ReDIF-Article 1.0
Author-Name: Christer Thrane
Author-X-Name-First: Christer
Author-X-Name-Last: Thrane
Title: Do expert reviews affect the decision to see motion pictures in movie theatres? An experimental approach
Abstract:
The positive correlation between favourable expert reviews and the economic success of motion pictures suggests that potential moviegoers are encouraged to see a particular movie by the good reviews it has received. Yet experimental evidence on actual consumers is mixed as to whether or not this is the case. Against this background, we examine the relationship between movie critics’ reviews and the decision to see motion pictures in movie theatres. Based on an experimental approach using four treatments – no review, a poor/OK minus review, an OK/OK plus review and a very good review – movie-seeing decisions for seven movie genres are examined. What we find is at odds with experimental studies, yielding as they do mixed results for the association between favourable reviews and movie preference. Seemingly unrelated regressions consistently show that the better the expert review of a movie, the more likely it is that people will see it. Yet the magnitude of the effects of expert reviews appears both somewhat genre specific and gender specific.
Journal: Applied Economics
Pages: 3066-3075
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414938
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414938
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Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3066-3075
Template-Type: ReDIF-Article 1.0
Author-Name: Dragan Miljkovic
Author-X-Name-First: Dragan
Author-X-Name-Last: Miljkovic
Author-Name: Silvia H. G. de Miranda
Author-X-Name-First: Silvia H. G.
Author-X-Name-Last: de Miranda
Author-Name: Ana L. Kassouf
Author-X-Name-First: Ana L.
Author-X-Name-Last: Kassouf
Author-Name: Fabíola C. R. Oliveira
Author-X-Name-First: Fabíola C. R.
Author-X-Name-Last: Oliveira
Title: Determinants of obesity in Brazil: the effects of trade liberalization and socio-economic variables
Abstract:
This article aims to evaluate a possible relation between increased Brazilian trade openness and increasing observed rates of overweight and obesity during the last 25 years. We develop an economic model where formal trade barriers are eliminated, and resulting sociocultural outcomes such as the adoption of westernized lifestyle in traditional non-western countries prevails, which could imply a health externality. In order to empirically analyse the influence of trade flows on overweight and obesity in Brazil, a balanced fixed-effects panel model has been estimated. Data for the 26 Brazilian states plus the Federal District are run for 1988/1989, 2002 and 2008. We found that an increase in trade openness leads to an increase in overweight and obesity ratios in Brazil. Hence results seem to point that there is a health externality in Brazil due to trade liberalization. However, more consistent evidence may be necessary to convince politicians and policymakers that any interference will be necessary to correct this externality.
Journal: Applied Economics
Pages: 3076-3088
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414939
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414939
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Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3076-3088
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Chadi
Author-X-Name-First: Adrian
Author-X-Name-Last: Chadi
Author-Name: Marco de Pinto
Author-X-Name-First: Marco
Author-X-Name-Last: de Pinto
Title: Selecting successful students? Undergraduate grades as an admission criterion
Abstract:
In Europe’s reformed education system, universities may be forced by law to consider undergraduate grade point average (UGPA) as the primary admission criterion in the selection of graduate students. In this article, we investigate whether UGPA predicts graduate student performance in order to discuss its usefulness as an admission criterion. In our theoretical framework, we show that undergraduate students may choose slower study progress in favour of receiving higher grades and conclude that UGPA is a relatively good (weak) predictor for graduate grade point average (study progress). Having data from a cohort of students whose selection was in clear conflict with the legal requirement, we empirically confirm our theoretical predictions by exploiting a unique opportunity for assessing educational policies. Discussion of our findings leads to some important conclusions concerning the Bologna reforms and the lawmakers’ idea of giving some independence to universities, but not too much of it.
Journal: Applied Economics
Pages: 3089-3105
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418072
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418072
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Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3089-3105
Template-Type: ReDIF-Article 1.0
Author-Name: W. A. Razzak
Author-X-Name-First: W. A.
Author-X-Name-Last: Razzak
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: Monetary policy, corporate profit and house prices
Abstract:
By using portfolio theory, we explain the highly observed correlation between the seemingly unrelated corporate profit and house prices in the United States. We test the predictions of the underlying model using a vector autoregression representation and find the data to be supportive of the theory. Monetary impulses explain high correlation as both corporate profit and house prices exhibit similar dynamics in response to a monetary impulse. Robustness checks are presented by using the federal funds rate instead of the monetary base as a measure of the stance of monetary policy and by using other model variations. In all cases, the results are robust.
Journal: Applied Economics
Pages: 3106-3114
Issue: 28
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418073
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418073
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Handle: RePEc:taf:applec:v:50:y:2018:i:28:p:3106-3114
Template-Type: ReDIF-Article 1.0
Author-Name: Pamela Wicker
Author-X-Name-First: Pamela
Author-X-Name-Last: Wicker
Author-Name: John C. Whitehead
Author-X-Name-First: John C.
Author-X-Name-Last: Whitehead
Author-Name: Bruce K. Johnson
Author-X-Name-First: Bruce K.
Author-X-Name-Last: Johnson
Author-Name: Daniel S. Mason
Author-X-Name-First: Daniel S.
Author-X-Name-Last: Mason
Title: The effect of sporting success and management failure on attendance demand in the Bundesliga: a revealed and stated preference travel cost approach
Abstract:
This study examines the private consumption benefits of sports attendance using revealed and stated preference data from 28 Football Bundesliga teams across three divisions. Survey respondents were presented with positive (sporting success) and negative (management failure) scenarios and asked for the number of game trips if each scenario occurred. The results of a pooled random effects Poisson model show that travel costs and ticket price have a significant negative effect on the number of home game trips. The weighted consumer surplus per game trip including travel costs and ticket prices is €345. Consumer surplus per game trip was found to change by €41 (first division) and €98 (second and third division) if the positive scenario occurred and by €39 if the negative scenario occurred.
Journal: Applied Economics
Pages: 5287-5295
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305090
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305090
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Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5287-5295
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Ze-Lei
Author-X-Name-First: Xiao
Author-X-Name-Last: Ze-Lei
Author-Name: Du Xin-ya
Author-X-Name-First: Du
Author-X-Name-Last: Xin-ya
Author-Name: Fan Fei
Author-X-Name-First: Fan
Author-X-Name-Last: Fei
Title: Convergence in China’s high-tech industry development performance: a spatial panel model
Abstract:
At present, there exist both regional-scale and regional performance differences in China’s high-tech industry development. Performance differences will inevitably affect resource allocation in regional high-tech industry and in the upgrading of industrial structure. Thus, this article conducts a systematic study of convergence issues in China’s high-tech industry development performance by adopting the spatial panel econometric method and related approaches.First, to measure the comprehensive performance of China’s high-tech industry development, the study applies the Malmquist index and efficacy coefficient method from the perspective of R&D efficiency and economic efficiency; then, by adopting a spatial autoregressive (SAR) panel data model, it studies the absolute $$\beta $$β
convergence and convergence mechanism of China’s provincial high-tech industry development performance from 2001 to 2013. The results indicate the existence of distinct absolute $$\beta $$β
convergence in China’s high-tech industry development performance since the 21st century, which is mainly due to technology diffusion. The convergence rate of central China is notably faster than that of other regions.
Journal: Applied Economics
Pages: 5296-5308
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305091
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305091
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Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5296-5308
Template-Type: ReDIF-Article 1.0
Author-Name: Colin O’hare
Author-X-Name-First: Colin
Author-X-Name-Last: O’hare
Author-Name: Youwei Li
Author-X-Name-First: Youwei
Author-X-Name-Last: Li
Title: Models of mortality rates – analysing the residuals
Abstract:
The area of mortality modelling has received significant attention over the last 25 years owing to the need to quantify and forecast improving mortality rates. This need is driven primarily by the concern of governments, insurance and actuarial professionals and individuals to be able to fund their old age. In particular, to quantify the costs of increasing longevity we need suitable model of mortality rates that capture the dynamics of the data and forecast them with sufficient accuracy to make them useful. In this article, we test several of the leading time series models by considering the fitting quality and in particular, testing the residuals of those models for normality properties. In a wide ranging study considering 30 countries we find that almost exclusively the residuals do not demonstrate normality. Further, in Hurst tests of the residuals we find evidence that structure remains that is not captured by the models.
Journal: Applied Economics
Pages: 5309-5323
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305092
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305092
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Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5309-5323
Template-Type: ReDIF-Article 1.0
Author-Name: Aylin Ege
Author-X-Name-First: Aylin
Author-X-Name-Last: Ege
Author-Name: A. Yavuz Ege
Author-X-Name-First: A. Yavuz
Author-X-Name-Last: Ege
Title: Is there an innovation effect on current account? A case for European countries
Abstract:
The aim of this article is to find out whether there is an innovation effect on the current account, and if there is one then to determine its significance. The study is carried out for the current accounts of European countries. Innovation is tested together with some other factors as control variables in order to estimate and compare its role in the determination process of the current account. The results indicate that innovation has quite a significant influence on the current accounts of European countries, and the form of the relationship between innovation and current account is non-linear. Moreover, the impact of innovation is stronger for countries at higher levels of innovation, but the growth rate of its average marginal effect diminishes through its increasing levels.
Journal: Applied Economics
Pages: 5324-5336
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305093
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305093
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Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5324-5336
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Title: Finance and income inequality in Kazakhstan: evidence since transition with policy suggestions
Abstract:
Kazakhstan gained independence in 1990 and has undergone significant changes in economic, social and trade conditions since then. We analyse the effects of financial development on income inequality in Kazakhstan, incorporating economic growth, foreign investment, education and the role of democracy as the drivers. We establish that income inequality in Kazakhstan is impaired by financial development. In summary, we send three messages for policy purposes. First, strengthening financial sector is necessary to close the gap between ‘haves and have-nots’. Second, attracting FDI beyond the hydrocarbon sector is necessary to alleviate inequality. Finally, adaptation of education system to the new social and economic environment would help in improving income distribution.
Journal: Applied Economics
Pages: 5337-5351
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305095
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305095
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Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5337-5351
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Krauss
Author-X-Name-First: Christopher
Author-X-Name-Last: Krauss
Author-Name: Johannes Stübinger
Author-X-Name-First: Johannes
Author-X-Name-Last: Stübinger
Title: Non-linear dependence modelling with bivariate copulas: statistical arbitrage pairs trading on the S&P 100
Abstract:
We develop a copula-based pairs trading framework and apply it to the S&P 100 index constituents from 1990 to 2014. We propose an integrated approach, relying on copulas for pairs selection and trading. Essentially, we fit t-copulas to all possible combinations of pairs in a formation period. Next, we trade these pairs in-sample to assess the profitability of mispricing signals derived from t-copulas. The top pairs are transferred to an out-of-sample trading period, and traded with individualized exit thresholds. In particular, we differentiate between pairs exhibiting mean-reversion and momentum effects and apply idiosyncratic take-profit and stop-loss rules. For the top 5 mean-reversion pairs, we find out-of-sample returns of 7.98% per year; the top 5 momentum pairs yield 7.22% per year. Standard deviations are low, leading to annualized Sharpe ratios of 1.52 (top 5 mean-reversion) and 1.33 (top 5 momentum), respectively.
Journal: Applied Economics
Pages: 5352-5369
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1305097
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1305097
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Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5352-5369
Template-Type: ReDIF-Article 1.0
Author-Name: Huanan Xu
Author-X-Name-First: Huanan
Author-X-Name-Last: Xu
Author-Name: Kenneth A. Couch
Author-X-Name-First: Kenneth A.
Author-X-Name-Last: Couch
Title: The business cycle, labor market transitions by age, and the great recession
Abstract:
Using matched monthly CPS data, this article studies differences in labour force transitions across age groups focusing on periods prior to and after the start of the Great Recession. Monthly transitions between employment, unemployment, and nonparticipation of 25–55-year-old males are examined from 1996 through 2013. Prior to the Great Recession (1996–2007), younger groups of workers are more likely to move from employment to unemployment and face an increased risk beyond that of other workers of making this transition as the economy worsens; however, this differential responsiveness no longer appears after the start of the Great Recession. Before and after the start of the Great Recession, younger groups of workers are more likely to move from unemployment to employment; however, there is no extra responsiveness among younger workers to the business cycle. Transitions into and out of the labour force nuance these findings; however, there is no evidence of differential responsiveness among younger workers since the start of the Great Recession. These findings challenge interpretation of the movements of unemployment rates by age group over the business cycle as being driven by differential hiring and firing particularly since the start of the Great Recession.
Journal: Applied Economics
Pages: 5370-5396
Issue: 52
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1307932
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1307932
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Handle: RePEc:taf:applec:v:49:y:2017:i:52:p:5370-5396
Template-Type: ReDIF-Article 1.0
Author-Name: Soosung Hwang
Author-X-Name-First: Soosung
Author-X-Name-Last: Hwang
Author-Name: Youngha Cho
Author-X-Name-First: Youngha
Author-X-Name-Last: Cho
Author-Name: Jinho Shin
Author-X-Name-First: Jinho
Author-X-Name-Last: Shin
Title: Does illiquidity matter in residential properties?
Abstract:
No, it does not, despite the general perception that illiquidity matters in real estate. As expected, our evidence shows that the illiquidity costs for the U.S. residential properties are large. The costs are equivalent to 12% of the total property returns on average, ranging from 9.5% to 29.5% of property prices depending on the illiquidity level and market conditions. However, when amortized by holding periods, monthly illiquidity costs are on average 0.08%, and illiquidity risk does not appear to be priced in residential properties; illiquid properties do not show higher returns than liquid properties. On the contrary, we find evidence of flight-to-quality in bull markets, that is, high-quality illiquid properties are preferred to low-quality liquid properties in buoyant markets. These results are in sharp contrast with those in equities and bonds where flight-to-liquidity has been reported when markets are in stress.
Journal: Applied Economics
Pages: 1-20
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1189506
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1189506
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Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:1-20
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Aniruddha Banerjee
Author-X-Name-First: Aniruddha
Author-X-Name-Last: Banerjee
Author-Name: Paul N. Rappoport
Author-X-Name-First: Paul N.
Author-X-Name-Last: Rappoport
Author-Name: Hiroaki Suenaga
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Suenaga
Title: E-commerce transactions, the installed base of credit cards, and the potential mobile E-commerce adoption
Abstract:
Mobile e-commerce (m-commerce) relaxes consumers’ temporal and geographic purchasing constraints and encourage the establishment of omnichannel markets. It is often argued that rapid increase in smartphone penetration is the primary driver of m-commerce adoption, whereas others contend that early adoption of m-commerce applications are mostly by “relatively heavy” Internet commerce users. Brynjolfsson et al. (2013) argue that rapid increase in smartphone penetration is the primary driver of m-commerce adoption, whereas Einav et al. (2014) contend that early adoption of m-commerce applications are mostly by ‘relatively heavy’ Internet commerce users. This article explores strength of the influences within a nested multiple-service framework, where the reduced-form econometric analysis allows for interdependency between m-commerce and e-commerce services, and the installed base of credit cards. The results reveal a complex situation in which credit cards facilitate e-commerce services, whereas m-commerce adoptions are driven by prior e-commerce and online transaction activity. Also, higher respondent incomes are negatively associated with proposed m-commerce adoption. Surprisingly, privacy concerns do not affect proposed adoption independently; however, an interaction term suggests privacy remains an adoption barrier for the older persons.
Journal: Applied Economics
Pages: 21-32
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1189507
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1189507
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Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:21-32
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Author-Name: Barry O’Mahony
Author-X-Name-First: Barry
Author-X-Name-Last: O’Mahony
Title: Asymmetric causality between Australian inbound and outbound tourism flows
Abstract:
We employ the asymmetric version of the Granger causality test to assess how Australian inbound and outbound tourism flows across 49 markets (countries) are driven by the sign-dependent variations in departure series or vice versa. A multivariate generalized autoregressive conditional heteroscedasticity (MGARCH) model is also estimated to study the time-varying co-volatility between inbound and outbound tourism growth rates. We find that rising co-volatility spillovers between inbound and outbound tourism are statistically significant for a number of markets. The six markets that are most susceptible to global shocks are China, Hong Kong, Papua New Guinea, Singapore, South Africa and the United Kingdom. China is by far the largest of these markets and, except for the United Kingdom, both arrivals and departures for each of these countries represent growing markets for Australia. We present recommendations for policymakers and destination management organizations (DMOs) to assist in developing customized strategies targeting resilient inbound markets in order to optimize tourism performance and reduce potential losses in times of crisis.
Journal: Applied Economics
Pages: 33-50
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1189508
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1189508
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Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:33-50
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew C. Chang
Author-X-Name-First: Andrew C.
Author-X-Name-Last: Chang
Title: Banking consolidation and small firm financing for research and development
Abstract:
This article examines the effect of increased market concentration of the banking industry caused by the Riegle–Neal Interstate Banking and Branching Efficiency Act (IBBEA) on the availability of finance for small firms engaged in research and development (R&D). I measure the financing decisions of these small firms using a balanced panel of Small Business Innovation Research (SBIR) applications. Using difference-in-differences, I find IBBEA decreased the supply of finance for small R&D firms. This effect is larger for late adopters of IBBEA, which tended to be states with stronger small banking sectors pre-IBBEA.
Journal: Applied Economics
Pages: 51-65
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192271
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192271
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Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:51-65
Template-Type: ReDIF-Article 1.0
Author-Name: Serhat Asci
Author-X-Name-First: Serhat
Author-X-Name-Last: Asci
Author-Name: Tatiana Borisova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Borisova
Author-Name: Michael Dukes
Author-X-Name-First: Michael
Author-X-Name-Last: Dukes
Title: Are price strategies effective in managing demand of high residential water users?
Abstract:
Encouraging water use efficiency and water conservation is one of the primary goals of water utility companies nationwide. This study estimates price elasticity of residential water demand to measure the responsiveness of water use to price changes, particularly for high water users. Household-level water use data for high residential water users from Central Florida were analysed using 3-stage least square (3SLS). Estimated price elasticity ranges between −0.07 and −0.14. This price elasticity estimate is below most of the estimates reported in the literature (in absolute value). The results imply that for price strategies to be effective in managing water demand of high residential water users, a significant price increase would be needed. Overall, this study highlights the importance of designing water conservation policies tailored to specific groups of customers, and the importance of using these strategies effectively and fairly for different customer groups.
Journal: Applied Economics
Pages: 66-77
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192272
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192272
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Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:66-77
Template-Type: ReDIF-Article 1.0
Author-Name: Damien S. Eldridge
Author-X-Name-First: Damien S.
Author-X-Name-Last: Eldridge
Author-Name: Ilke Onur
Author-X-Name-First: Ilke
Author-X-Name-Last: Onur
Author-Name: Malathi Velamuri
Author-X-Name-First: Malathi
Author-X-Name-Last: Velamuri
Title: The impact of private hospital insurance on the utilization of hospital care in Australia
Abstract:
We use the Australian National Health Survey to estimate the impact of private hospital insurance on the propensity for hospitalization as a private patient. We account for the potential endogeneity of supplementary private hospital insurance purchases and calculate moral hazard based on a difference-of-means estimator. We decompose the moral hazard estimate into a diversion component that is due to an insurance-induced substitution away from public patient care towards private patient care, and an expansion component that measures a pure insurance-induced increase in the propensity to seek private patient care. Our results suggest that on average, private hospital insurance causes a sizable and significant increase in the likelihood of hospital admission as a private patient. However, there is little evidence of an expansion effect; the treatment effect of private hospital insurance on private patient care is driven almost entirely by the substitution away from public patient care towards private patient care. We discuss the implications for policies that aim to expand supplementary private insurance coverage for the purpose of reducing excess demand on the public healthcare system.
Journal: Applied Economics
Pages: 78-95
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192273
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192273
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Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:78-95
Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Mitra
Author-X-Name-First: Sophie
Author-X-Name-Last: Mitra
Author-Name: Kristine Jones
Author-X-Name-First: Kristine
Author-X-Name-Last: Jones
Title: The impact of recent mental health changes on employment: new evidence from longitudinal data
Abstract:
This study uses longitudinal data and four different measures of mental health to tease out the impact of psychiatric disorder onsets and recoveries on employment outcomes. Results suggest that developing a mental health problem leads to a significant increase in the probability of transitioning to non-employment, while a recovery increases the probability of return to work among the not employed with a mental health problem. No consistent effect was found on hours worked and earnings. Research and policy attention is needed with respect to early interventions such as job retention programmes to help workers with mental health problems remain employed as well as interventions that may lead to recovery and return to work. More research is needed especially with data and models that can differentiate between the effects of mental health onsets and recoveries on employment exit and return to work transitions.
Journal: Applied Economics
Pages: 96-109
Issue: 1
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192274
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192274
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Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:96-109
Template-Type: ReDIF-Article 1.0
Author-Name: Feng Qiu
Author-X-Name-First: Feng
Author-X-Name-Last: Qiu
Author-Name: James Rude
Author-X-Name-First: James
Author-X-Name-Last: Rude
Title: Extreme dependence in price transmission analysis
Abstract:
We propose a generalized procedure that combines conventional price transmission analysis with copula-based dynamic tail dependence, to examine price relationships under extreme conditions. This approach is used to examine Ukrainian wheat markets where export restrictions combined with price surges, 2006–2008 and 2010–2012, have contributed to a turbulent market. The results indicate that domestic prices were effectively insulated from world price shocks, but that a ‘rocket and feathers’ price relation held between domestic flour and wheat prices. These asymmetric price co-movements changed with the degree of restrictiveness of the export prohibitions.
Journal: Applied Economics
Pages: 4379-4392
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158916
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158916
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Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4379-4392
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Louis Combes
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Combes
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Author-Name: Moussé Sow
Author-X-Name-First: Moussé
Author-X-Name-Last: Sow
Title: Crises and exchange rate regimes: time to break down the bipolar view?
Abstract:
We revisit the link between crises and exchange rate regimes (ERR). Using a wide panel of 90 developed and developing countries over the period 1980–2009, we find that corner ERR are not more prone to crises compared to intermediate ERR. This finding holds for different types of crises (banking, currency and debt), and is robust to a wide set of alternative specifications. Consequently, we clearly break down the traditional bipolar view: countries that aim at preventing crisis episodes should focus less on the choice of the ERR, and instead implement sound structural macroeconomic policies.
Journal: Applied Economics
Pages: 4393-4409
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158917
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158917
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Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4393-4409
Template-Type: ReDIF-Article 1.0
Author-Name: R. Bellando
Author-X-Name-First: R.
Author-X-Name-Last: Bellando
Author-Name: Z. Ben Braham
Author-X-Name-First: Z.
Author-X-Name-Last: Ben Braham
Author-Name: S. Galanti
Author-X-Name-First: S.
Author-X-Name-Last: Galanti
Title: The profitability of financial analysts’ recommendations: evidence from an emerging market
Abstract:
This article aims at measuring recommendation value on the Tunisian market and uses a hand-collected database of 6646 recommendations (2005–2009). We apply the methodology of calendar–time portfolio analysis. This consists of simulating a portfolio that would include stocks depending on the recommendations issued by financial analysts. In order to measure abnormal (or ‘excess’) returns, the raw return of the portfolio is then compared to the evolution of the stock index and to the prediction of the Capital Asset-Pricing Model. Some of the portfolios we build earn a positive significant excess risk-adjusted return of 1.19% per month. Beyond the results that are in line with the literature, we provide two original results. First, ‘sell’ signals are informative, whereas ‘buy’ signals are not. We suggest that it is related to large (small) firms having more ‘buy’ (‘sell’) recommendations and to the direction of the market trend over the period. Second, the fact that recommendation levels have more impact than recommendation changes is explained by the specific informational context on that market, which is that recommendations are systematically disclosed each month, whereas on other markets, recommendations are produced only when the analyst has some new information to disclose.
Journal: Applied Economics
Pages: 4410-4418
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158918
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158918
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Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4410-4418
Template-Type: ReDIF-Article 1.0
Author-Name: T. Miyazaki
Author-X-Name-First: T.
Author-X-Name-Last: Miyazaki
Author-Name: S. Hamori
Author-X-Name-First: S.
Author-X-Name-Last: Hamori
Title: Asymmetric correlations in gold and other financial markets
Abstract:
In this article, we implement a recently developed statistical method to test asymmetries in cross-asset correlations, focusing in particular on the gold market. Our empirical results provide evidence that gold exhibits asymmetric correlations with stocks and the U.S. dollar, but not with bonds. Furthermore, splitting the sample into three characteristic periods, we find that exceedance correlations exhibit substantial time variation even in similar market tensions for same pairs of assets. Our findings imply that investors and fund managers should take into account the asymmetric dependence structure, which depends on the upside or downside of the market.
Journal: Applied Economics
Pages: 4419-4425
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158919
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158919
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Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4419-4425
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Louis Combes
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Combes
Author-Name: Rasmane Ouedraogo
Author-X-Name-First: Rasmane
Author-X-Name-Last: Ouedraogo
Author-Name: Sampawende J.-A. Tapsoba
Author-X-Name-First: Sampawende J.-A.
Author-X-Name-Last: Tapsoba
Title: Structural shifts in aid dependency and fiscal policy in developing countries
Abstract:
Foreign aid is a sizable source of government financing for several developing countries and its allocation matters for the conduct of fiscal policy. This article revisits the fiscal effects of shifts in aid dependency in 59 developing countries from 1960 to 2010. It identifies structural shifts in aid dependency and uses treatment effect methods to assess the fiscal effects of aid. It finds that shifts in aid dependency are frequent and have significant fiscal effects in developing countries. In addition to the traditional evidences of tax and investment displacement and ‘aid illusion,’ we show that upward shifts and downward shifts in aid dependency have asymmetric effects on fiscal accounts in developing countries. Large aid inflows undermine tax capacity and public investment while large reductions in aid inflows tend to keep recipients’ fiscal behaviour intact. Moreover, the tax displacement effect tends to be temporary while the impacts on expenditure items tend to last. Finally, we find that the undesirable fiscal effects of aid are more pronounced in countries with low governance score and low absorptive capacity.
Journal: Applied Economics
Pages: 4426-4446
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158920
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158920
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Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4426-4446
Template-Type: ReDIF-Article 1.0
Author-Name: Kai Liu
Author-X-Name-First: Kai
Author-X-Name-Last: Liu
Title: Structural fiscal balances of the UK: a state-space DSGE approach
Abstract:
This article proposes a new framework to estimate and analyse structural fiscal balances of the UK, by combining the state-space modelling with the Bayesian DSGE modelling. In this way, trends and cycles of aggregate variables can be extracted from data consistently with the macroeconomic theory. A setting of an integrated random walk for the underlying stochastic trends fits the data best. An expansion in government spending can increase nominal fiscal revenue to a certain degree, but the effect is not persistent due to two kinds of crowd-out effects: it crowds out domestic investment; and it pushes up the price of domestic goods and simultaneously crowds out the foreign demand. The shocks to the nominal interest rate, foreign output and the government spending are the three major contributors to the variation of the fiscal revenue cycle.
Journal: Applied Economics
Pages: 4447-4461
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158921
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158921
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Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4447-4461
Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Álvarez-Díaz
Author-X-Name-First: Marcos
Author-X-Name-Last: Álvarez-Díaz
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Forecasting US consumer price index: does nonlinearity matter?
Abstract:
The objective of this article is to predict, both in sample and out of sample, the consumer price index (CPI) of the US economy based on monthly data covering the period of 1980:1–2013:12, using a variety of linear (random walk (RW), autoregressive (AR) and seasonal autoregressive integrated moving average (SARIMA)) and nonlinear (artificial neural network (ANN) and genetic programming (GP)) univariate models. Our results show that, while the SARIMA model is superior relative to other linear and nonlinear models, as it tends to produce smaller forecast errors; statistically, these forecasting gains are not significant relative to higher-order AR and nonlinear models, though simple benchmarks like the RW and AR(1) models are statistically outperformed. Overall, we show that in terms of forecasting the US CPI, accounting for nonlinearity does not necessarily provide us with any statistical gains.
Journal: Applied Economics
Pages: 4462-4475
Issue: 46
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1158922
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158922
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Handle: RePEc:taf:applec:v:48:y:2016:i:46:p:4462-4475
Template-Type: ReDIF-Article 1.0
Author-Name: Jinghua Xie
Author-X-Name-First: Jinghua
Author-X-Name-Last: Xie
Author-Name: Dengjun Zhang
Author-X-Name-First: Dengjun
Author-X-Name-Last: Zhang
Title: Shipping the good fish out? An empirical study on the EU seafood imports under the EU’s Generalized System of Preferences
Abstract:
The impact of the EU (European Union) Generalized System of Preference (GSP) on the relative EU’s demand for seafood quality was evaluated in the study. We first explored the theoretical Alchian–Allen result of change in ad valorem tariffs in an n–good world, and then tested this result in the empirical study. The theoretical analysis suggests that whether a reduced ad valorem tariff in an n–good case raises the relative demand for high-value goods depends not only on the substitutability between high-value and low-value goods but also on the substitutability between these similar goods with their weak substitutes. In the empirical sections, we first estimated the elasticities of the substitutions and then used these elasticities to evaluate the quality composition of the EU’s seafood imports from the beneficiary countries. The empirical results in general confirm the occurrence of ‘shipping the good fish out’ due to the reduced tariff rates under the EU’s GSP arrangements.
Journal: Applied Economics
Pages: 2606-2617
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243216
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243216
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Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2606-2617
Template-Type: ReDIF-Article 1.0
Author-Name: Shiying Zhang
Author-X-Name-First: Shiying
Author-X-Name-Last: Zhang
Title: Effects of attending preschool on adolescents’ outcomes: evidence from China
Abstract:
This study examines whether attending preschool enhances the cognitive abilities, health and socialization of junior high school students in China. Using propensity score matching to control for a rich data set of student, family and school characteristics, I find that attending preschool enhances cognition among seventh graders but those gains fade among ninth graders. The greatest benefits from preschool accrue to both seventh and ninth graders from economically disadvantaged families. Results for non-cognitive categories are mixed, and no evidence suggests superior health outcomes. Evidence also shows cognitive benefits among adolescents – especially those economically disadvantaged – who entered preschool earlier.
Journal: Applied Economics
Pages: 2618-2629
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243217
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243217
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Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2618-2629
Template-Type: ReDIF-Article 1.0
Author-Name: Li Zhou
Author-X-Name-First: Li
Author-X-Name-Last: Zhou
Author-Name: Xi Tian
Author-X-Name-First: Xi
Author-X-Name-Last: Tian
Author-Name: Zhengyi Zhou
Author-X-Name-First: Zhengyi
Author-X-Name-Last: Zhou
Title: The effects of environmental provisions in RTAs on PM2.5 air pollution
Abstract:
This article examines the effect of regional trade agreements (RTAs) with and without environmental provisions on the concentration of PM2.5 (fine particulate matter $$ \le 2.5\,{\rm{\mu m}}$$≤2.5μm
in diameter), which is one of the most significant air pollutants. Using panel data for 136 countries from 2001 to 2010, we estimate the effect of trade liberalization under RTAs and the effect of environmental regulations under RTAs with environmental provisions. Moreover, paired countries are used to examine the effect of RTAs with environmental provisions on the convergence of PM2.5 concentrations. Human behaviours and natural characteristics are added as control variables, and the potential endogeneity and environmental provisions of RTAs as well as the gross domestic product and openness of specific regions are addressed using instrumental variables or difference-in-differences after propensity score matching. The main results indicate that RTAs without environmental provision terms lead to worse air quality in terms of PM2.5 concentrations, whereas RTAs with environmental provision terms are likely to be associated with a lower level of PM2.5 concentrations. In addition, RTAs with environmental provisions, especially environmental cooperation provisions, facilitate the convergence of PM2.5 concentrations between contracting countries, which can be explained by the late-mover advantage after distinguishing North–South, South–South and North–North trade forms.
Journal: Applied Economics
Pages: 2630-2641
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1243218
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1243218
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Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2630-2641
Template-Type: ReDIF-Article 1.0
Author-Name: Petrit Gashi
Author-X-Name-First: Petrit
Author-X-Name-Last: Gashi
Author-Name: Mehtap Hisarciklilar
Author-X-Name-First: Mehtap
Author-X-Name-Last: Hisarciklilar
Author-Name: Geoffrey Pugh
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Pugh
Title: Kosovo – EU trade relations: a dynamic panel poisson approach
Abstract:
To inform policymaking following trade liberalization between Kosovo and the EU within the framework of the Stabilisation and Association Agreement (SAA), we specify a gravity model to investigate Kosovo’s trade in goods with 28 EU countries over the period 2005–2013. We reconcile competing methodological requirements by using a dynamic Poisson approach to estimation. Together, persistent trade patterns and an unfavourable combination of demand and supply elasticities suggest that trade liberalization in isolation is not sufficient to promote exports but may need to be incorporated within a wider policy and institutional framework. In addition, our findings suggest that trade costs should be a particular focus for policy: distance has a big negative influence on Kosovo’s exports to EU countries; while diaspora communities promote Kosovo’s exports to EU markets, most likely because they offset trade costs.
Journal: Applied Economics
Pages: 2642-2654
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245836
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245836
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Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2642-2654
Template-Type: ReDIF-Article 1.0
Author-Name: Gaowen Kong
Author-X-Name-First: Gaowen
Author-X-Name-Last: Kong
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Title: Corporate governance, human capital, and productivity: evidence from Chinese non-listed firms
Abstract:
This article analyses the effects of corporate governance (CG) and human capital on productivity by using the 1999–2006 data from the National Bureau of Statistics of China (NBSC). The findings of this study are twofold. First, CG and human capital generate significant positive effects on the productivity of both state-owned enterprises (SOEs) and non-SOEs. Second, CG has significantly different moderate and mediate effects on the relationship between human capital and productivity. Our results are robust to different specifications and alternative measures. This study provides clear policy implications by suggesting that the firms in emerging markets, especially SOEs, must improve their CG and their allocation of human capital for them to enhance their productivity.
Journal: Applied Economics
Pages: 2655-2668
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245837
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245837
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Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2655-2668
Template-Type: ReDIF-Article 1.0
Author-Name: Yao-Tung Chen
Author-X-Name-First: Yao-Tung
Author-X-Name-Last: Chen
Author-Name: Ker-Tah Hsu
Author-X-Name-First: Ker-Tah
Author-X-Name-Last: Hsu
Author-Name: Ming-Sung Kao
Author-X-Name-First: Ming-Sung
Author-X-Name-Last: Kao
Author-Name: Yuh-Yao Lin
Author-X-Name-First: Yuh-Yao
Author-X-Name-Last: Lin
Title: The choice between civil service and entrepreneurship in the presence of credit rationing
Abstract:
This article examines the role of opportunities to be civil servants in determining both an individual’s ability to borrow to be an entrepreneur and his career choices that are related to the endowment of wealth. It is assumed that the civil servants are hired to produce the public goods or services that benefit all the entrepreneurs hiring workers to produce private goods. In considering the case where the position of a civil servant is randomly up for grabs without rent-seeking, it is known that the effect of a rise in the number of civil servants to be hired on an individual’s ability to borrow is mainly based on the improved efficiency and a rise in the wage due to an increase in the demand for workers. When the position of a civil servant is secured through rent-seeking, it is found that an improvement in the financial environment will lower the cost of rent-seeking if the welfare of the civil servant is not too high.
Journal: Applied Economics
Pages: 2669-2678
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245839
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245839
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Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2669-2678
Template-Type: ReDIF-Article 1.0
Author-Name: Dorel N. Manitiu
Author-X-Name-First: Dorel N.
Author-X-Name-Last: Manitiu
Author-Name: Giulio Pedrini
Author-X-Name-First: Giulio
Author-X-Name-Last: Pedrini
Title: The countercyclical role of Italian local banks during the financial crisis
Abstract:
The article analyses the role of local banks in Italy during the 2008–2009 crisis from the perspective of the relationship lending model. During the crisis, the risk of cascading failures of financial organizations has dramatically increased, thus causing a return of attention to local banking as a possible source of countercyclical behaviours in the financial markets thanks to their ability to establish fiduciary long-term relationships with small businesses.The purpose of this article is to test this hypothesis and to disentangle the response of local banks during the financial turmoil according to their governance structure and location. Our results show that non-independent local banks and, to a limited extent, cooperative banks located in the rural area actually played a significant countercyclical role across the crisis. Policy implications suggest that prudential supervision should rethink the indicators of systemic risk in order to differentiate banks according to their capability of mitigating it.
Journal: Applied Economics
Pages: 2679-2696
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245840
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245840
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Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:2679-2696
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 27
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2017.1282088
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282088
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Handle: RePEc:taf:applec:v:49:y:2017:i:27:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Kreutzer
Author-X-Name-First: Fabian
Author-X-Name-Last: Kreutzer
Author-Name: Wolfram Berger
Author-X-Name-First: Wolfram
Author-X-Name-Last: Berger
Title: The labour market effects of offshoring of small and medium-sized firms: micro-level evidence for Germany
Abstract:
Small and medium-sized enterprises (SMEs) are the economic powerhouse of many OECD countries (perhaps most prominently so in Germany). Yet, the labour market dynamics caused by the internationalization of their production activities are largely unexplored. We use survey-based micro-level data for Germany to explore the employment effects of offshoring of SMEs, relying on propensity score matching and difference-in-difference analysis. We find evidence for a downsizing effect in the immediate aftermath of offshoring whereas, initially, job creation is not spurred. In the medium run, we find evidence for a slowing down of employment dynamics of offshoring firms (that tend to belong to the better performing SMEs in Germany) relative to non-offshoring firms. Even though our results do not point to a net employment loss in the medium run, our evidence suggests that offshoring may lead to less jobs being created. This conclusion cannot be confirmed for large companies.
Journal: Applied Economics
Pages: 3416-3431
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420900
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420900
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Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3416-3431
Template-Type: ReDIF-Article 1.0
Author-Name: María Concepción Pérez-Cárceles
Author-X-Name-First: María Concepción
Author-X-Name-Last: Pérez-Cárceles
Author-Name: Juan Cándido Gómez-Gallego
Author-X-Name-First: Juan Cándido
Author-X-Name-Last: Gómez-Gallego
Author-Name: María Gómez-Gallego
Author-X-Name-First: María
Author-X-Name-Last: Gómez-Gallego
Title: Environmental factors affecting European and Central Asian health-systems’ bias-corrected efficiency
Abstract:
Health expenditures comprise a large part of national incomes, which explains the growing interest of government agencies in establishing efficient control and management policies in the current context of economic difficulties. One of the main problems in efficiency analysis is to determine the environmental variables that have an impact on the production process. In particular, employing data on the European and Central Asian health systems, the article demonstrates that bias corrected Data Envelopment Analysis is most appropriate measuring efficiency than traditional Data Envelopment Analysis. Bias correction, implies a higher potential resources reduction, affects the ranking of health systems and allows variables influencing efficiency which would be undiscovered with non-corrected estimation. The second stage determines that lifestyle factors, policy organization and location of countries affect the efficiency results and cause differences among the countries. The contribution of these results is particularly useful facing the decision making by governments. Their strategies should be oriented to implementing active policies to struggle against smoking and promoting health policies aimed at increasing the level of immunization in order to be more effective improving management efficiency.
Journal: Applied Economics
Pages: 3432-3440
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420901
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420901
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Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3432-3440
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Mesly
Author-X-Name-First: Olivier
Author-X-Name-Last: Mesly
Author-Name: François-Éric Racicot
Author-X-Name-First: François-Éric
Author-X-Name-Last: Racicot
Title: Heteroscedasticity of deviations in market bubble moments – how the goods and bads lead to the ugly
Abstract:
We conjecture that market bubbles may be the results of the interplay of Goods and Bads (toxic products) which develop through three interlocking moments – herding, swarming and stampeding, with deviations marked by heteroscedasticity. We use our stylized model of financial predation, the Consolidated Model of Financial Predation, and data we have accumulated through in-the-field eight-year research and the study of 30 years of U.S. market history in order to explore the foundations of market crises. We find that blind trust (or the positivity bias) and of the fear to miss out on an opportunity to enter/exit a market impacts the investors’ decisions to invest or retract. We show how markets are driven towards a make-or-break predatory dynamic that creates winners and losers due in part to weak regulations and identify a constant k that permeates market behaviours.
Journal: Applied Economics
Pages: 3441-3463
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420902
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420902
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Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3441-3463
Template-Type: ReDIF-Article 1.0
Author-Name: Edward Oczkowski
Author-X-Name-First: Edward
Author-X-Name-Last: Oczkowski
Title: Modelling prices and the reputation of individual named wines
Abstract:
This article develops empirical models to assess the relation between the reputation of an individual named wine and its price. Unrestricted and polynomial distributed lag models are used to assess the impact of past expert quality ratings on the prices of Australian premium wines. Results point to the practical unimportance of current wine quality scores impacting prices and suggest that quality score lag effects up to six years may be important. The largest individual lagged impact of quality on price is estimated to occur at approximately two years, and prices are estimated to increase by more than 10% over six years for a one-point quality score increase. A procedure for identifying potential wine price bargains based on a comparison of price predictions from estimated wine reputation and current quality measures is illustrated. The implications of the findings for wine producers are also discussed.
Journal: Applied Economics
Pages: 3464-3476
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1422599
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1422599
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Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3464-3476
Template-Type: ReDIF-Article 1.0
Author-Name: Ryan S Sullivan
Author-X-Name-First: Ryan S
Author-X-Name-Last: Sullivan
Author-Name: Alissa Dubnicki
Author-X-Name-First: Alissa
Author-X-Name-Last: Dubnicki
Author-Name: Donald H Dutkowsky
Author-X-Name-First: Donald H
Author-X-Name-Last: Dutkowsky
Title: Research, teaching, and ‘other’: what determines job placement of economics Ph.D.s?
Abstract:
This article examines job placement for Economics Ph.D.s seeking junior-level positions using a data set constructed from job candidate vitas, public websites, and queries to programme directors. Based upon multinomial logit estimation, being from highly ranked graduate institutions and having high quality publications has a significantly positive effect on placement at a top 20 academic institution or Doctoral-level institution. Teaching experience – as a teaching assistant (TA) or independent instructor – has a significantly positive effect on placement, but only for institutions ranked below the top 60, Masters and Baccalaureate institutions, and non-tenure track academic positions. We find little evidence on the effect of teaching in tenure track hires for departments with Doctoral programmes or mid-tier prestige. Moreover, teaching experience has a significantly negative effect on placement in the top group of academic institutions in Economics.
Journal: Applied Economics
Pages: 3477-3492
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430331
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430331
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Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3477-3492
Template-Type: ReDIF-Article 1.0
Author-Name: Agata Wierzbowska
Author-X-Name-First: Agata
Author-X-Name-Last: Wierzbowska
Author-Name: Masahiko Shibamoto
Author-X-Name-First: Masahiko
Author-X-Name-Last: Shibamoto
Title: Cross-country evidence on determinants of fiscal policy effectiveness: the role of trade and capital flows
Abstract:
This article studies the determinants of size differentials between fiscal multipliers in countries around the world, both advanced and developing economies. We introduce variables not considered before for explaining multiplier size differentials, such as capital flows and the openness of capital markets, while controlling for domestic conditions and exchange rate regimes. We also disaggregate GDP into its main components in order to identify the channels through which external and internal factors can influence GDP after a change in fiscal policy. Our results point to the existence of a new channel through which fiscal policy effectiveness is affected. Capital flows, especially FDI flows, play an important role in determining the sizes of fiscal multipliers, and a country’s external conditions largely explain GDP changes after fiscal expenditure shocks. Our results also point towards a strong link between a country’s international position and its real economy.
Journal: Applied Economics
Pages: 3493-3514
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430332
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430332
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Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3493-3514
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaofei Li
Author-X-Name-First: Xiaofei
Author-X-Name-Last: Li
Author-Name: Brady Brewer
Author-X-Name-First: Brady
Author-X-Name-Last: Brewer
Author-Name: Cesar Escalante
Author-X-Name-First: Cesar
Author-X-Name-Last: Escalante
Title: Pre-recession efficiencies and input allocation decisions of agricultural and critically insolvent banks
Abstract:
The late 2000s’ economic recession is considered the longest economic downturn since the 1930s Great Depression. Declining real estate values ignited an increase in loan defaults and mortgage foreclosures that led to a surge of bank failures at a rate not experienced by the U.S. banking industry since the 1980s. A total of 509 bank failures were recorded by the FDIC from January 2007–December 2014, with nearly 60% of these failures occurring in 2009 and 2010. In contrast, there were only 24 bank failures in the U.S. during the 7-year period prior to 2007. This study analyzed certain components of operating decisions made by banks that either survived or became critically insolvent during the late 2000s financial crisis using an Input Distance Stochastic Frontier function to estimate the technical efficiency (TE) and allocative efficiency (AE) between agricultural banks and non-agricultural banks. This efficiency analysis was applied to a 7-year pre-recession period and is designed to final out any early warning signals that decrease the efficiency level of banks. Results suggest that survival banks were more technically efficient than critically insolvent banks, and banks’ tendency to utilize cheaper inputs were more likely to stand the economic crisis.
Journal: Applied Economics
Pages: 3515-3531
Issue: 32
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1430333
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430333
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Handle: RePEc:taf:applec:v:50:y:2018:i:32:p:3515-3531
Template-Type: ReDIF-Article 1.0
Author-Name: Nermeen Shehata
Author-X-Name-First: Nermeen
Author-X-Name-Last: Shehata
Author-Name: Ahmed Salhin
Author-X-Name-First: Ahmed
Author-X-Name-Last: Salhin
Author-Name: Moataz El-Helaly
Author-X-Name-First: Moataz
Author-X-Name-Last: El-Helaly
Title: Board diversity and firm performance: evidence from the U.K. SMEs
Abstract:
This study examines the relationship between board diversity and firm performance in small- and medium-sized enterprises (SMEs) in the U.K. In particular, we investigate the role of gender and age as two dimensions of diversity. Using a large sample of SMEs (34,798 firms) located in the U.K. and focusing on the period from 2005 to 2013, our results show a significant negative association between each of gender diversity and age diversity, and firm performance. Our evidence yields important insights on the association between board diversity and firm performance, and calls suggestions for increased board diversity into question. A possible explanation for our findings could be due to the fact that our sampled firms are SMEs, whereas those in previous studies have been large enterprises. This research provides insights to entrepreneurs on how to enhance their performance, and to governments and policymakers on the development of rules that would achieve better performance in the SME sector.
Journal: Applied Economics
Pages: 4817-4832
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293796
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293796
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Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4817-4832
Template-Type: ReDIF-Article 1.0
Author-Name: Ju Ryum Chung
Author-X-Name-First: Ju Ryum
Author-X-Name-Last: Chung
Author-Name: Eun Jung Cho
Author-X-Name-First: Eun Jung
Author-X-Name-Last: Cho
Author-Name: Ho-Young Lee
Author-X-Name-First: Ho-Young
Author-X-Name-Last: Lee
Author-Name: Myungsoo Son
Author-X-Name-First: Myungsoo
Author-X-Name-Last: Son
Title: The impact of labour unions on external auditor selection and audit scope: evidence from the Korean market
Abstract:
We examine whether labour unions influence external auditor selection and audit scope. As a major user group of financial information, labour unions likely demand financial information of high quality and thus high-quality audits. As a union’s request for wage increases is likely strong when a firm is performing well, management facing wage negotiations with the labour union has incentives to manipulate earnings downward and may therefore prefer auditors who allow more discretion. Using union data unique to Korea during 2005–2008, we find that firms with a stronger labour union tend to choose higher-quality auditors (i.e. Big N or industry specialist auditors). We also find that unionization is negatively (positively) associated with positive (negative) abnormal audit fees and audit hours, and the effects are more pronounced when the union is stronger and more active. Given that departures from normal audit fees and audit hours in either direction arguably impair audit quality, this finding is consistent with our prediction of unions’ demand for high-quality audits. Overall, our findings suggest that labour unions play an important role in determining audit quality.
Journal: Applied Economics
Pages: 4833-4850
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296546
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296546
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Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4833-4850
Template-Type: ReDIF-Article 1.0
Author-Name: Zhen Xu
Author-X-Name-First: Zhen
Author-X-Name-Last: Xu
Author-Name: Jianbai Huang
Author-X-Name-First: Jianbai
Author-X-Name-Last: Huang
Author-Name: Feitao Jiang
Author-X-Name-First: Feitao
Author-X-Name-Last: Jiang
Title: Subsidy competition, industrial land price distortions and overinvestment: empirical evidence from China’s manufacturing enterprises
Abstract:
In China, offering inexpensive industrial land is a major means for local governments to participate in interregional subsidy competition, which caused regional industrial land price distortions. This article examines the effect of regional industrial land price distortions on the overinvestment of Chinese manufacturing enterprises. Chinese industrial enterprises data and land price monitoring data of 49 major cities in China between 1998 and 2007 are employed. This article has found that industrial land price distortions will significantly stimulate the overinvestment of manufacturing enterprises. Such a promoting effect varies among manufacturing enterprises of different ownership and industry attributes. Industrial land price distortions have the most significant promoting effect on the overinvestment of foreign-invested firms, followed by private firms, while state-owned enterprises are the least affected. Compared with private heavy-industry firms, industrial land price distortions have a more significant effect on the overinvestment of private light-industry firms. Compared with foreign-invested heavy-industry firms, industrial land price distortions have a more significant effect on the overinvestment of foreign-invested light-industry firms. This study represents a positive exploration and supplement to the existing studies on the effects of subsidy competition on corporate investment behaviours and the studies on Chinese-style subsidy competition.
Journal: Applied Economics
Pages: 4851-4870
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296547
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296547
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Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4851-4870
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Brechot
Author-X-Name-First: Marc
Author-X-Name-Last: Brechot
Author-Name: Stephan Nüesch
Author-X-Name-First: Stephan
Author-X-Name-Last: Nüesch
Author-Name: Egon Franck
Author-X-Name-First: Egon
Author-X-Name-Last: Franck
Title: Does sports activity improve health? Representative evidence using local density of sports facilities as an instrument
Abstract:
Using representative and geocoded data from the Swiss Household Panel and the Swiss Business Census, we estimate the effect of sports activity on health. OLS models show that sports activity significantly decreases overweight, sleeping problems, headaches, back problems, and perceived health impediments in everyday activities and significantly increases health satisfaction. Because sports activity is likely to be misreported and correlated with unobserved determinants of health, we use the number of sports facilities within 6 miles of the individual’s residence as an instrument for sports activity. Although the instrument is powerful in explaining sports activity, the second-stage effects on health are mostly statistically insignificant due to the high SEs of the IV estimates.
Journal: Applied Economics
Pages: 4871-4884
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296548
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296548
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Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4871-4884
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Mangani
Author-X-Name-First: Andrea
Author-X-Name-Last: Mangani
Title: Social networking websites: who survives?
Abstract:
This article studies the relationship between the characteristics of social networking sites (SNSs) and their probability of survival. The data sample includes 224 SNSs launched throughout the world from 1995 to 2015 and that can be described by focus strategy, business financing methods and interactions with external companies, such as partnerships, mergers and acquisitions. Three factors are systematically associated with closure hazard rates. First, compared with SNSs that address a specialized audience, generalist SNSs have a three times higher probability of closing. Second, being the target of a merger or acquisition more than doubles the probability of closure. Third, new entrants have higher probability to survive if compared with SNSs with experience in the industry.
Journal: Applied Economics
Pages: 4885-4896
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296549
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296549
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Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4885-4896
Template-Type: ReDIF-Article 1.0
Author-Name: Kelly Burns
Author-X-Name-First: Kelly
Author-X-Name-Last: Burns
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Title: Demystifying the Meese–Rogoff puzzle: structural breaks or measures of forecasting accuracy?
Abstract:
Structural breaks have been suggested by several economists as a possible explanation for the Meese–Rogoff puzzle, in the sense that an exchange rate model can outperform the random walk in terms of the out-of-sample forecasting error if the period under investigation is free of structural breaks. The results indicate that structural breaks cannot explain the inability of the flexible price monetary model to outperform the random walk. The only plausible explanation for the Meese–Rogoff puzzle is that forecasting accuracy is traditionally assessed by magnitude-only measures. When forecasting accuracy is assessed by alternative measures that do not rely exclusively on the magnitude of error, the monetary model can outperform the random walk regardless of the presence or otherwise of structural breaks.
Journal: Applied Economics
Pages: 4897-4910
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296550
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296550
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Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4897-4910
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Meehan
Author-X-Name-First: Brian
Author-X-Name-Last: Meehan
Author-Name: Bruce L. Benson
Author-X-Name-First: Bruce L.
Author-X-Name-Last: Benson
Title: Does private security affect crime?: a test using state regulations as instruments
Abstract:
Private security is employed to deter criminals from attacking specific targets, presumably not to produce general deterrence. Indeed, private security generates negative spillovers as criminals substitute non-protected targets for protected targets. Specific deterrence efforts may generate positive spillovers too, however, by raising the expected cost of committing crimes, thereby reducing crime in an area. The hypothesis that private security deters crime at the state level is tested. The demand for private security in an area is expected to be simultaneously dependent on the level of crime; so, an instrumental variables approach is employed in a panel-data fixed-effect model using state-level data from 1998 to 2010. Instruments for the amount of private security are state-wide licensing regulations for firms specializing in providing security, since these regulations should influence entry. Some state-level measures of violent and property crime are shown to be negatively and significantly related to increases in private security, suggesting that private security generates a general deterrence effect.
Journal: Applied Economics
Pages: 4911-4924
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1296551
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1296551
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Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4911-4924
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: 4925-4926
Issue: 48
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1335975
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1335975
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Handle: RePEc:taf:applec:v:49:y:2017:i:48:p:4925-4926
Template-Type: ReDIF-Article 1.0
Author-Name: Johanna Garnitz
Author-X-Name-First: Johanna
Author-X-Name-Last: Garnitz
Author-Name: Robert Lehmann
Author-X-Name-First: Robert
Author-X-Name-Last: Lehmann
Author-Name: Klaus Wohlrabe
Author-X-Name-First: Klaus
Author-X-Name-Last: Wohlrabe
Title: Forecasting GDP all over the world using leading indicators based on comprehensive survey data
Abstract:
Comprehensive and international comparable leading indicators across countries and continents are rare. In this paper, we use a free and instantaneous available source of leading indicators, the ifo World Economic Survey (WES), to forecast growth of Gross Domestic Product (GDP) in 44 countries and three country aggregates separately. We come up with three major results. First, for more than three-fourths of the countries or country-aggregates in our sample, a model containing one of the major WES indicators produces on average lower forecast errors compared to a benchmark model. Second, the most important WES indicators are either the economic climate or the expectations on future economic development for the next six months. And third, adding the WES indicators of the main trading partners leads to a further increase in forecast accuracy in more than 50% of the countries. It seems therefore reasonable to incorporate economic signals from the domestic economy’s main trading partners.
Journal: Applied Economics
Pages: 5802-5816
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1624915
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624915
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Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5802-5816
Template-Type: ReDIF-Article 1.0
Author-Name: Jinook Jeong
Author-X-Name-First: Jinook
Author-X-Name-Last: Jeong
Author-Name: Jee Young Kim
Author-X-Name-First: Jee Young
Author-X-Name-Last: Kim
Author-Name: Yoon Jae Ro
Author-X-Name-First: Yoon Jae
Author-X-Name-Last: Ro
Title: On the efficiency of racetrack betting market: a new test for the favourite-longshot bias
Abstract:
A number of empirical studies on the efficiency of racetrack betting market have shown the ‘favourite-longshot bias,’ which means longshots are overbet while favourites are underbet. Asian markets such as Hong Kong and Japan, however, have produced some contradictory empirical evidence to the bias. One critical element in the efficiency test procedure is how to assess the unobservable objective winning probability of a horse in a race. This paper proposes a new test framework with a more general evaluation of the objective probability of winning than the traditional method. Unlike the traditional method, our model allows the heterogeneity of the horses and the races. We apply the new empirical method to test whether the favourite-longshot bias is present in racetrack betting market of Korea. We found that the favourite-longshot bias exists in the racetrack market of Korea and the result distinguishes Korean racetrack market from other Asian markets.
Journal: Applied Economics
Pages: 5817-5828
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1624918
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624918
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Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5817-5828
Template-Type: ReDIF-Article 1.0
Author-Name: Thao Pham
Author-X-Name-First: Thao
Author-X-Name-Last: Pham
Title: Do German renewable energy resources affect prices and mitigate market power in the French electricity market ?
Abstract:
Several empirical studies show that renewable energy sources such as wind and solar power, typically supplied at low marginal cost, can cause electricity market prices to fall. Recent theoretical research and simulations also highlight the link between the integration of renewable energy and market performance in an oligopolistic energy market. This article looks at these dynamics in the context of cross-border effects between two highly interconnected electricity markets, France and Germany. Using a rich panel dataset for hourly data from November 2009 to July 2015, I estimate the impact of German wind and solar power production on both prices and market power in the French wholesale market. The findings highlight the importance of coordinating energy policies via joint renewable energy support schemes among interconnected European electricity markets.
Journal: Applied Economics
Pages: 5829-5842
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1624919
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624919
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Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5829-5842
Template-Type: ReDIF-Article 1.0
Author-Name: Insook Lee
Author-X-Name-First: Insook
Author-X-Name-Last: Lee
Title: The effect of death tax on the labour supply of donors: evidence from TRA97
Abstract:
Exploiting estate tax cuts from the Taxpayer Relief Act of 1997 (TRA97), this paper estimates the effect of death tax on the labour supply of living potential donors. To this end, difference-in-difference with multiple imputation approach is applied to micro-level panel data. This paper finds that the estate tax cuts makes no difference in labour force participation or working hours of potential donors in a statistically meaningful way, although the TRA97 reduces marginal estate tax rates by 37.51% on average. This finding suggests that the death tax causes no meaningful distortion of living potential-donors’ labour supplies at either extensive or intensive margin.
Journal: Applied Economics
Pages: 5843-5855
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1626344
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1626344
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Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5843-5855
Template-Type: ReDIF-Article 1.0
Author-Name: Nikos Benos
Author-X-Name-First: Nikos
Author-X-Name-Last: Benos
Author-Name: Sotiris Karkalakos
Author-X-Name-First: Sotiris
Author-X-Name-Last: Karkalakos
Author-Name: Stefania Zotou
Author-X-Name-First: Stefania
Author-X-Name-Last: Zotou
Title: Spatial and economic patterns in life expectancy among US States
Abstract:
This study investigates the determinants of gender-specific life expectancy across US states over the period 1995–2007. We employ a production function specification where life expectancy depends on health expenditure, income, education and lifestyle variables, allowing for spatial effects. Empirical results suggest that education attainment and health expenditure are the main factors behind improving longevity, whereas smoking bears a strong negative influence. For robustness purposes, we also use health spending as well as education criteria, apart from geographical ones to model interstate spillovers. In the former case, states with similar health expenditure are ‘neighbors’ and affect positively the life expectancy process. If education is applied instead of health spending together with geographic proximity, the spatial correlation is insignificant, i.e. education ‘neighbors’ do not affect life expectancy. Our findings do not imply significant gender differences regarding health production. The results suggest that health care policy will have to focus on wider economic and social considerations, like education and lifestyle changes, except medical care provision in order to exploit the full potential for life expectancy improvements of the US population.
Journal: Applied Economics
Pages: 5856-5869
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1630706
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630706
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Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5856-5869
Template-Type: ReDIF-Article 1.0
Author-Name: Austin F. Eggers
Author-X-Name-First: Austin F.
Author-X-Name-Last: Eggers
Author-Name: Peter A Groothuis
Author-X-Name-First: Peter A
Author-X-Name-Last: Groothuis
Author-Name: Parker Redding
Author-X-Name-First: Parker
Author-X-Name-Last: Redding
Author-Name: Kurt W. Rotthoff
Author-X-Name-First: Kurt W.
Author-X-Name-Last: Rotthoff
Author-Name: Michael Solimini
Author-X-Name-First: Michael
Author-X-Name-Last: Solimini
Title: The negative effect of NCAA football bowl bans on university enrolment and applications
Abstract:
Universities provide consumption amenities to students in addition to their educational services. Collegiate sports programs have been characterized as one of these consumption amenities. Previous research has shown that athletic success has a positive impact on both the quantity and quality of students attending a university. Alternatively, we analyse if athletic malfeasance, as measured by NCAA postseason bans of football programs, negatively affects either the quantity or quality of student applications or enrolment. Our findings suggest that athletic malfeasance that results in a postseason football bowl ban lowers the quantity of applications, admittances and enrolment to a university. In addition, we find that universities respond to decreased application numbers by increasing their admission rates, while students who are admitted to the school enrol at the same rate as before the ban. Thus, the reduced enrolment is the result of a smaller applicant pool and not the result of a lower rate of enrolment. Lastly, we do not detect any reduction in student quality at the sanctioned university. Our results demonstrate that impropriety by an athletics program directly impacts a university’s non-athlete student enrolment by influencing the amenity mix provided by the university.
Journal: Applied Economics
Pages: 5870-5877
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1630708
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630708
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Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5870-5877
Template-Type: ReDIF-Article 1.0
Author-Name: Nour Kattih
Author-X-Name-First: Nour
Author-X-Name-Last: Kattih
Author-Name: Fady Mansour
Author-X-Name-First: Fady
Author-X-Name-Last: Mansour
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Small firms, bigger changes: health insurance coverage take-up rates in small firms after the ACA
Abstract:
Measuring the impact of the Affordable Care Act of 2010 (ACA) on employer-sponsored health insurance is essential in an era of constant changes to health policy. Using data from the Kaiser Family Foundation Employer Survey, we focus on firms with fewer than 50 employees in order to isolate the effect of the ACA on small firms. We utilize a differences‐in‐differences approach with a time fixed effect structure to provide analysis for a treatment group of small firms and a control group of large firms. After excluding firms with grandfathered plans, we find that the ACA provisions reduced health insurance coverage take-up rates in small firms by 1.96 to 2.67 percentage points (compared to large firms).
Journal: Applied Economics
Pages: 5878-5889
Issue: 54
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1630710
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630710
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Handle: RePEc:taf:applec:v:51:y:2019:i:54:p:5878-5889
Template-Type: ReDIF-Article 1.0
Author-Name: Demetris Christodoulou
Author-X-Name-First: Demetris
Author-X-Name-Last: Christodoulou
Title: The accounting identity trap: identification under stock-and-flow rank deficiency
Abstract:
Empirical research relying on inputs from published company financial statements ignore the fact that the observed accounting data matrix has been purposefully designed to be rank deficient by means of articulation between stocks and flows. This inherent feature of the data-generating process suggests structural non-identification when both stocks and flows appear in the design matrix and a constraint is required to identify parameters. Much financial research has fallen into this ‘accounting identity trap’ and routinely employs implicit constraints to enable estimation, albeit without acknowledgement of the constraints hence the misleading inferences. This article elucidates the problem of parameter identification under stock-and-flow rank deficiency using existing applications on equity pricing. The focus is on the interpretation of slope coefficients that must be anchored on economically defensible parameter constraints.
Journal: Applied Economics
Pages: 1413-1427
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363860
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363860
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Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1413-1427
Template-Type: ReDIF-Article 1.0
Author-Name: Linlan Xiao
Author-X-Name-First: Linlan
Author-X-Name-Last: Xiao
Author-Name: Vigdis Boasson
Author-X-Name-First: Vigdis
Author-X-Name-Last: Boasson
Author-Name: Sergey Shishlenin
Author-X-Name-First: Sergey
Author-X-Name-Last: Shishlenin
Author-Name: Victoria Makushina
Author-X-Name-First: Victoria
Author-X-Name-Last: Makushina
Title: Volatility forecasting: combinations of realized volatility measures and forecasting models
Abstract:
This article examines financial time series volatility forecasting performance. Different from other studies which either focus on combining individual realized measures or combining forecasting models, we consider both. Specifically, we construct nine important individual realized measures and consider combinations including the mean, the median and the geometric means as well as an optimal combination. We also apply a simple AR(1) model, an SV model with contemporaneous dependence, an HAR model and three linear combinations of these models. Using the robust forecasting evaluation measures including RMSE and QLIKE, our empirical evidence from both equity market indices and exchange rates suggests that combinations of both volatility measures and forecasting models improve the forecast performance significantly.
Journal: Applied Economics
Pages: 1428-1441
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363863
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363863
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Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1428-1441
Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Rhaiem
Author-X-Name-First: Mehdi
Author-X-Name-Last: Rhaiem
Author-Name: Lutz Bornmann
Author-X-Name-First: Lutz
Author-X-Name-Last: Bornmann
Title: Reference Publication Year Spectroscopy (RPYS) with publications in the area of academic efficiency studies: what are the historical roots of this research topic?
Abstract:
In this study, we explore the historical roots of the relatively new topic in scientometrics of academic efficiency assessments. We are interested in the contributions of researchers from the past which have been revealed as important for the topic in the long run. The technique of Reference Publication Year Spectroscopy (RPYS) has been recently introduced which is based on the analysis of the frequency with which references are cited in the publications of a specific research field (here: academic efficiency assessments). The study is based on papers conducted for a systematic review of empirical articles on technical efficiency in academic research production: 60 papers (published between 1992 and 2012) and 1314 cited references. Results indicated that 5 peaks are clearly identifiable until 2000. They correspond, respectively, to the years 1957 (The founding article of Farrell), 1978 (Proposition of a new promising approach: the Data Envelopment Analysis (DEA) by Charnes et al.), 1988 (Research-teaching multi-output model and integration of quality indicators), 1990 (DEA in the service of Research Assessment Exercise) and 1997 (Introduction of weight restrictions in DEA). The peaks are described with the underlying publications and recent developments (since 2000) in the area of academic efficiency studies are outlined.
Journal: Applied Economics
Pages: 1442-1453
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1363865
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363865
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Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1442-1453
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Bruns
Author-X-Name-First: Martin
Author-X-Name-Last: Bruns
Author-Name: Tigran Poghosyan
Author-X-Name-First: Tigran
Author-X-Name-Last: Poghosyan
Title: Leading indicators of fiscal distress: evidence from extreme bounds analysis
Abstract:
Early warning systems (EWSs) are widely used to assess a country’s vulnerability to fiscal distress. A fiscal distress episode is identified as a period when government experiences extreme funding difficulties. Most EWSs employ a specific set of only fiscal leading indicators predetermined by the researchers, which casts doubt on their robustness. We revisit this issue using extreme bounds analysis, which allows identifying robust leading indicators of fiscal distress from a large set. A robust leading indicator’s effect does not strongly depend on the model specification. Consistent with the theoretical predictions of latest generation crisis models, we find that both fiscal and non-fiscal leading indicators are robust. In addition, we find that a fiscal vulnerability indicator based on fiscal and non-fiscal leading indicators offers a 29% gain in predictive power compared to a traditional one based only on fiscal leading indicators. This suggests that both fiscal and non-fiscal leading indicators should be taken into account when assessing country’s vulnerability to fiscal distress.
Journal: Applied Economics
Pages: 1454-1478
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1366639
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366639
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Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1454-1478
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Perry Sadorsky
Author-X-Name-First: Perry
Author-X-Name-Last: Sadorsky
Title: How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis
Abstract:
We examine the causal relationship between globalization, economic growth and energy consumption for 25 developed economies using both time series and panel data techniques for the period 1970–2014. Due to the presence of cross-sectional dependence in the panel (countries from Asia, North America, Western Europe and Oceania), we employ the cross-sectional augmented IPS test to ascertain unit root properties. The cointegration test results indicate the presence of a long-run association between globalization, economic growth and energy consumption. Long-run heterogeneous panel elasticities are estimated through the common correlated effects mean group estimator and the augmented mean group estimator. The empirical results reveal that, for most countries, globalization increases energy consumption. In the USA and UK, globalization is negatively correlated with energy consumption. The causality analysis indicates the presence of the globalization-driven energy consumption hypothesis. This empirical analysis suggests insightful policy guidelines for policy makers using globalization as an economic tool to utilize energy efficiently for sustainable economic development in the long run.
Journal: Applied Economics
Pages: 1479-1494
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1366640
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366640
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Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1479-1494
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael González-Val
Author-X-Name-First: Rafael
Author-X-Name-Last: González-Val
Author-Name: Miriam Marcén
Author-X-Name-First: Miriam
Author-X-Name-Last: Marcén
Title: Unemployment, marriage and divorce
Abstract:
In this article, we examine whether the business cycle plays a role in marriage and divorce. We use data on Spain, since the differences between recession and expansion periods across regions are quite pronounced in that country. We find that the unemployment rate is negatively associated with the marriage rate, pointing to a pro-cyclical evolution of marriage; however, the response of the divorce rate to the business cycle is mixed. Results show the existence of different patterns, depending on geography: divorce rates in coastal regions are pro-cyclical, while in inland regions divorces react to unemployment in a counter-cyclical way.
Journal: Applied Economics
Pages: 1495-1508
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1366642
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366642
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Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1495-1508
Template-Type: ReDIF-Article 1.0
Author-Name: Robert McNown
Author-X-Name-First: Robert
Author-X-Name-Last: McNown
Author-Name: Chung Yan Sam
Author-X-Name-First: Chung Yan
Author-X-Name-Last: Sam
Author-Name: Soo Khoon Goh
Author-X-Name-First: Soo Khoon
Author-X-Name-Last: Goh
Title: Bootstrapping the autoregressive distributed lag test for cointegration
Abstract:
We propose a bootstrap autoregressive-distributed lag (ARDL) test. By applying the appropriate bootstrap method, some weaknesses underlying the Pesaran, Shin and Smith ARDL bounds test are addressed including size and power properties and the elimination of inconclusive inferences. In addition, inferences based solely on the significance of the F-test and single t-test from the ARDL bounds test are not sufficient to avoid degenerate cases. The bootstrap ARDL test provides an additional test on the significance of coefficients on lagged levels of the regressors, which provides a better insight into the cointegration status of the model.
Journal: Applied Economics
Pages: 1509-1521
Issue: 13
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1366643
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366643
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Handle: RePEc:taf:applec:v:50:y:2018:i:13:p:1509-1521
Template-Type: ReDIF-Article 1.0
Author-Name: William Martin
Author-X-Name-First: William
Author-X-Name-Last: Martin
Author-Name: Cong S. Pham
Author-X-Name-First: Cong S.
Author-X-Name-Last: Pham
Title: Estimating the gravity model when zero trade flows are frequent and economically determined
Abstract:
Since the 1950s, we have known that the presence of zero-valued dependent variables can seriously bias econometric estimates whether the zeros are included or excluded. Yet the widely-used gravity model is frequently estimated on samples that include large fractions of zeros. An influential paper by Santos Silva and Tenreyro – based on simulations that include no economically-determined zeros – concludes that the bias problems resulting from zeros and those resulting from heteroscedasticity and nonlinearity can be solved using the Poisson Pseudo-Maximum-Likelihood (PPML) model including the zero values. This paper begins by adapting the Santos Silva and Tenreyro experimental design to include economically-determined zeros to see whether this conclusion continues to hold. With this design, it finds that alternative estimators have lower bias than PPML. Changing to a Monte Carlo design that replicates the much-higher real-world frequency of predicted values near zero restores the finding of lower bias with the PPML estimator. The results highlight the need for very careful design of Monte Carlo experiments when evaluating alternative estimators of the gravity model.
Journal: Applied Economics
Pages: 2766-2779
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1687838
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1687838
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Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2766-2779
Template-Type: ReDIF-Article 1.0
Author-Name: Adalgiso Amendola
Author-X-Name-First: Adalgiso
Author-X-Name-Last: Amendola
Author-Name: Roberto Dell’Anno
Author-X-Name-First: Roberto
Author-X-Name-Last: Dell’Anno
Author-Name: Lavinia Parisi
Author-X-Name-First: Lavinia
Author-X-Name-Last: Parisi
Title: How did the Great Recession Affect Gender Disparity in Europe? An Analysis by a Multidimensional Deprivation Approach
Abstract:
This paper analyses how the Great Recession affected the gender disparity in material and social deprivation in Europe. We propose multidimensional non-monetary indexes of absolute and relative (i.e. using peer comparisons) deprivations estimated on data from the European Quality of Life Survey for the waves 2007 and 2011. We find that the Great Recession decreased gender disparity over all the dimensions of deprivations. By applying a Blinder-Oaxaca decomposition, we estimate that this decline of gender gap has depended on a reduction of the difference in characteristics between genders that has more than offset an increase of gender discrimination.
Journal: Applied Economics
Pages: 2780-2794
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696934
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696934
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Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2780-2794
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Holzschuh
Author-X-Name-First: Peter
Author-X-Name-Last: Holzschuh
Author-Name: Ankita Mishra
Author-X-Name-First: Ankita
Author-X-Name-Last: Mishra
Author-Name: Jayant Misra
Author-X-Name-First: Jayant
Author-X-Name-Last: Misra
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Author-Name: Shyam Nath
Author-X-Name-First: Shyam
Author-X-Name-Last: Nath
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: An augmented P-star model of Indian inflation
Abstract:
An augmented P-Star model is estimated and tested to identify the drivers of inflation in India. The model includes monetary and non-monetary factors, demand-pull and cost-push factors, and domestic as well as foreign factors. The results show that inflation in India is driven by a combination of monetary factors and non-monetary factors, some of which affect inflation on the supply side while others operate on the demand side. It turns out, however, that inflation in India is determined more by domestic rather than foreign factors.
Journal: Applied Economics
Pages: 2795-2806
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696935
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696935
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Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2795-2806
Template-Type: ReDIF-Article 1.0
Author-Name: Ahsen Maqsoom
Author-X-Name-First: Ahsen
Author-X-Name-Last: Maqsoom
Author-Name: Abdul Mughees
Author-X-Name-First: Abdul
Author-X-Name-Last: Mughees
Author-Name: Hafiz Zahoor
Author-X-Name-First: Hafiz
Author-X-Name-Last: Zahoor
Author-Name: Adnan Nawaz
Author-X-Name-First: Adnan
Author-X-Name-Last: Nawaz
Author-Name: Khwaja Mateen Mazher
Author-X-Name-First: Khwaja Mateen
Author-X-Name-Last: Mazher
Title: Extrinsic psychosocial stressors and workers’ productivity: impact of employee age and industry experience
Abstract:
This paper aims to explore the impact of employee age and industrial experience on extrinsic psychosocial stressors that may influence the productivity of workers. Using an integrated theoretical approach, this study examines four extrinsic psychosocial stressors, i.e. work environment, infrastructure, economy and country environment. The data were collected from Pakistani construction industry through a questionnaire survey approach. The study’s findings show that workers having diverse ages did not agree over several work environments and economy-related psychosocial stressors, whereas workers having diverse industrial experiences were in disagreement over numerous country environment and economy-related psychosocial stressors. The study concludes that firms need to mitigate the work environment related psychosocial stressors in young workers, such as, over congestion and inaccessibility to different tools, high temperature and workspace atmosphere. Moreover, organizational and governmental support are direly needed to overcome the country environment-related psychosocial stressors of less experienced workers who are more susceptible to these stressors due to the complex organizational culture, occurrence of natural disasters and unfavourable economic and political state of the country.
Journal: Applied Economics
Pages: 2807-2820
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696936
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696936
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Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2807-2820
Template-Type: ReDIF-Article 1.0
Author-Name: Charles-Olivier Amédée-Manesme
Author-X-Name-First: Charles-Olivier
Author-X-Name-Last: Amédée-Manesme
Author-Name: Benoit Faye
Author-X-Name-First: Benoit
Author-X-Name-Last: Faye
Author-Name: Eric Le Fur
Author-X-Name-First: Eric
Author-X-Name-Last: Le Fur
Title: Heterogeneity and fine wine prices: application of the quantile regression approach
Abstract:
This study addresses the price heterogeneity of the five first growths of Bordeaux. We apply the quantile regression (QR) approach with market segmentation based on wine bottle price quantiles. We compute the hedonic price of wine attributes for various price segments in the market. This approach is applied to a major dataset comprising approximately 50,000 transactions over the 2003–2017 period. The findings indicate that the relative hedonic prices of several wine attributes differ significantly among deciles. The implications of our results are manifold. Vintage and Parker grades have a strong impact on the variation in wine prices, and there is a hierarchy among the five first growths of Bordeaux. There is also a premium commanded by the reputation and experience of an auction house. Since the financial crisis of 2012–2013, investors have considered that the five first growths are overrated, save for the most expensive wines; for those most expensive ones, investors prefer scarcity to liquidity. These results are of import to several actors in the fine wine market: investors, for example, could use the findings herein to better diversify their wine portfolio, while auction houses could better anticipate their future sales based on consumers’ expectation.
Journal: Applied Economics
Pages: 2821-2840
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696937
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696937
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Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2821-2840
Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Barbi
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Barbi
Author-Name: Hélyette Geman
Author-X-Name-First: Hélyette
Author-X-Name-Last: Geman
Author-Name: Silvia Romagnoli
Author-X-Name-First: Silvia
Author-X-Name-Last: Romagnoli
Title: Diamonds and precious metals for reduction of portfolio tail risk
Abstract:
We study the performance of diamonds compared to gold and other precious metals in mitigating the tail risk of a diversified equity market portfolio over the period June 2007 to October 2018. Our results display a diversification benefit of some diamond indices, which also improve the portfolio reward-to-risk ratio. To corroborate this evidence, we study the dependence structure and tail dependence of diamonds and a broad equity market portfolio and compare it to the dependence obtained with gold and other precious metals. Results from fitting a bivariate copula show that the average left tail dependence reaches its minimum when diamonds are used. We also show that using shares of diamond-mining companies does not provide the same benefits.
Journal: Applied Economics
Pages: 2841-2861
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696938
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696938
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Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2841-2861
Template-Type: ReDIF-Article 1.0
Author-Name: Amar Bhidé
Author-X-Name-First: Amar
Author-X-Name-Last: Bhidé
Title: Making economics more useful: how technological eclecticism could help
Abstract:
Keynes thought it would be ‘splendid’ if economists became more like dentists. Disciplinary economics has instead become more like physics in focusing on concise, universal propositions verified through decisive tests. This focus, I argue, limits the practical utility of the discipline because universal propositions form only a part of new policy recipes. I further suggest that, as in engineering and medicine, developing economic recipes requires eclectic combinations of suggestive tests and judgement. Additionally, I offer a detailed example of how a simulation model can help evaluate new policy combinations that affect the screening of loan applications.
Journal: Applied Economics
Pages: 2862-2881
Issue: 26
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696939
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696939
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Handle: RePEc:taf:applec:v:52:y:2020:i:26:p:2862-2881
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriele Angori
Author-X-Name-First: Gabriele
Author-X-Name-Last: Angori
Author-Name: David Aristei
Author-X-Name-First: David
Author-X-Name-Last: Aristei
Author-Name: Manuela Gallo
Author-X-Name-First: Manuela
Author-X-Name-Last: Gallo
Title: Lending technologies, banking relationships, and firms’ access to credit in Italy: the role of firm size
Abstract:
This paper analyses the role of lending technologies and banking relationships on firms’ credit access in Italy. Using EFIGE firm-level data, we show that the depth and strength of firm–bank relationships have heterogeneous effects on credit demand and rationing probabilities depending on the size of the borrower. Multiple banking relationships alleviate financial constraints for small firms, while borrowing from a large number of lenders hinders access to credit for large companies. Small and medium-sized enterprises with a higher share of debt with the main bank have a lower probability of being credit denied, as debt concentration contributes to overcome the opacity problems typical of the SMEs. Long-lasting relationships, by reducing information asymmetries, significantly improve access to credit for small and large firms. Conversely, we find that medium-sized enterprises are more exposed to financing constraints as relationship duration increases, due to possible lock-in effects. Finally, firms maintaining banking relationships based on transactional technologies are more likely to be credit denied, while the use of relationship lending technologies improves credit availability for both small and large enterprises.
Journal: Applied Economics
Pages: 6139-6170
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1613503
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613503
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Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6139-6170
Template-Type: ReDIF-Article 1.0
Author-Name: Maarten van Rooij
Author-X-Name-First: Maarten van
Author-X-Name-Last: Rooij
Author-Name: Jakob de Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: de Haan
Title: Would helicopter money be spent? New evidence for the Netherlands
Abstract:
According to some economists, central banks should use ‘helicopter money’ to boost inflation (expectations). Based on a survey among Dutch households, we examine whether respondents would spend the money received via such a transfer. Our results show that respondents expect to spend about 30% of the transfer and that helicopter money would hardly affect inflation expectations. Furthermore, whether transfers come from the central bank or the government makes no difference. Finally, our results suggest that the effect of helicopter money on public trust in the ECB is ambiguous.
Journal: Applied Economics
Pages: 6171-6189
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1613504
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613504
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Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6171-6189
Template-Type: ReDIF-Article 1.0
Author-Name: Nga Lê
Author-X-Name-First: Nga
Author-X-Name-Last: Lê
Author-Name: Wim Groot
Author-X-Name-First: Wim
Author-X-Name-Last: Groot
Author-Name: Sonila M. Tomini
Author-X-Name-First: Sonila M.
Author-X-Name-Last: Tomini
Author-Name: Florian Tomini
Author-X-Name-First: Florian
Author-X-Name-Last: Tomini
Title: Effects of health insurance on labour supply: evidence from the health care fund for the poor in Vietnam
Abstract:
The expansion of health insurance in emerging countries raises concerns about the unintended negative effects of health insurance on labour supply. This article examines the labour supply effects of the Health Care Fund for the Poor (HCFP) in Vietnam in terms of the number of work hours per month and labour force participation (the probability of employment). Employing various matching methods combined with a Difference-in-Differences approach on the Vietnam Household Living Standard Surveys 2002–2006, we show that the HCFP, which aims to provide poor people and disadvantaged minority groups with free health insurance, has a negative effect on labour supply. This is manifested in both the average number of hours worked per month and the probability of employment, suggesting the income effect of the HCFP. Interestingly, the effects are mainly driven by the non-poor recipients living in rural areas, raising the question of the targeting strategy of the programme.
Journal: Applied Economics
Pages: 6190-6212
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1613509
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613509
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Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6190-6212
Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Wei-Wei Zhang
Author-X-Name-First: Wei-Wei
Author-X-Name-Last: Zhang
Author-Name: Chen-Miao Lin
Author-X-Name-First: Chen-Miao
Author-X-Name-Last: Lin
Title: Firm location and corporate dividend policy: evidence from China
Abstract:
We investigate the relation between a firm’s geographic location and its dividend policy. We find that firms headquartered in the National Central Cities, cities with high-speed rail (HSR), and with shorter distance to the nearest National Central City pay higher dividends. We find evidence that attributes the higher dividends to an increase in the number of analysts’ site visits, greater information transparency, and a reduction in financial constraints. Finally, the observed increases in dividends tend to be stronger for firms that benefit the most from improvements in the information environment after the arrival of HSR, such as firms located in regions without regional airports, firms located in areas with a lower regional gross domestic product, firms located a greater distance to the closest National Central City, and firms that are smaller, state-owned, have a shorter listing history in the exchanges, and have a more concentrated ownership.
Journal: Applied Economics
Pages: 6213-6234
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1613511
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613511
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Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6213-6234
Template-Type: ReDIF-Article 1.0
Author-Name: Elliot Boateng
Author-X-Name-First: Elliot
Author-X-Name-Last: Boateng
Author-Name: Frank W. Agbola
Author-X-Name-First: Frank W.
Author-X-Name-Last: Agbola
Author-Name: Amir Mahmood
Author-X-Name-First: Amir
Author-X-Name-Last: Mahmood
Title: Does the quality of institutions enhance savings? The case of Sub-Saharan Africa
Abstract:
Over the last three decades, there has been increasing disparity in savings across regions and income groupings globally. In this paper, we investigate whether the quality of institutions explains the saving disparities in Sub-Saharan Africa (SSA). Utilizing comprehensive panel data and spanning the period 1980–2015, we estimate a savings model using the two-step instrumental variable generalized method of moment (2SIV-GMM) estimator. Our results show that the impact of institutions on savings behaviour differs across regions and income groupings, and in SSA, in aggregate. We find that the level and growth of per capita income and terms of trade enhance savings whereas government consumption expenditure, financial sector development and the elderly dependency rate are savings impeding. The findings are robust to alternative model specification and highlight the importance of institutions in influencing savings behaviour in SSA.
Journal: Applied Economics
Pages: 6235-6263
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1616066
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616066
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Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6235-6263
Template-Type: ReDIF-Article 1.0
Author-Name: Ji Wu
Author-X-Name-First: Ji
Author-X-Name-Last: Wu
Author-Name: Eze Peter Chimezie
Author-X-Name-First: Eze Peter
Author-X-Name-Last: Chimezie
Author-Name: Gilbert V. Nartea
Author-X-Name-First: Gilbert V.
Author-X-Name-Last: Nartea
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Title: Extreme returns and the idiosyncratic volatility puzzle: African evidence
Abstract:
We examine the cross-sectional relationship between the expected stock return and both the maximum daily return (MAX) and the idiosyncratic volatility (IVOL) in the five largest emerging African stock markets over the period from 2001 to 2015. First, we find that there is a robust and significantly negative MAX effect in the pooled African stock markets. Second, though we initially document a negative IVOL effect, it disappears after controlling for MAX. Finally, the negative MAX effect is only significant in the small-SIZE, high-illiquidity and high-skewness portfolios. Our results suggest risk-seeking behaviour among African investors similar to that in other parts of the world.
Journal: Applied Economics
Pages: 6264-6279
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1631442
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1631442
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Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6264-6279
Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Feng
Author-X-Name-First: Qiang
Author-X-Name-Last: Feng
Author-Name: Jing Feng
Author-X-Name-First: Jing
Author-X-Name-Last: Feng
Author-Name: Ming Li
Author-X-Name-First: Ming
Author-X-Name-Last: Li
Author-Name: Yang Li
Author-X-Name-First: Yang
Author-X-Name-Last: Li
Title: Are contingent instructors better teachers: evidence from a Chinese university
Abstract:
This paper evaluates the effects of contingent instructors on education outcomes in the context of higher education in developing countries. Exploiting the features of Chinese higher education system, we are able to exclude the confounding effects of student selection and heterogeneous marking standards. Although students of contingent instructors appear to perform as well as their fellow students taught by full-time instructors, we find the evidence that contingent instructors utilize lower marking standards, resulting an inflation of the scores of their students, which masks the negative impacts of their teaching. Our results suggest that contingent instructors have a significantly negative impact on education outcomes. While exposure to contingent instructors may affect the probability of students taking more challenging courses in the following term, the longer-term impacts on education outcomes are negligible.
Journal: Applied Economics
Pages: 6280-6285
Issue: 58
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1667476
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1667476
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Handle: RePEc:taf:applec:v:51:y:2019:i:58:p:6280-6285
Template-Type: ReDIF-Article 1.0
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Chaker Aloui
Author-X-Name-First: Chaker
Author-X-Name-Last: Aloui
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Title: Are Islamic bonds a good safe haven for stocks? Implications for portfolio management in a time-varying regime-switching copula framework
Abstract:
We examine the portfolio implications of adding the Islamic bond index (Sukuk) to a benchmark portfolio of Islamic stocks. The daily data of the Islamic bond index; the Islamic stock markets of the world, Canada, Japan, USA, UK and Islamic financial stocks are used for the period of 1 October 2005 through 30 April 2015. We examine the presence of structural breaks via the Iterated Cumulative Sum of Square (ICSS) algorithm, which clearly indicate that Islamic stock-bond returns have several structural breaks over the sample period; hence, the dependence among the markets may have a regime-switching pattern. We rely on the flexible properties of the ARMA-FIGARCH models with the skew-t distribution to model the marginal distributions of the series. Next, a set of static, time-varying and regime-switching time-varying copula models are applied to encircle the dependence dynamics. Finally, using different portfolio strategies, we access the portfolio implications of a multi-asset portfolio. Overall, the results provide evidence that the Islamic bond index can be included as a potential hedge/safe haven in benchmark stock portfolios.
Journal: Applied Economics
Pages: 219-238
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494376
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494376
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Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:219-238
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: James W. Saunoris
Author-X-Name-First: James W.
Author-X-Name-Last: Saunoris
Title: Does variability in crimes affect other crimes? The case of international corruption and shadow economy
Abstract:
Using data on more than 125 countries, this article attempts to add to the research linking corruption and the shadow economy by examining the effect of variability (uncertainty) in one white-collar crime on the prevalence of the other. Measuring variability alternately via a 3-year and a 5-year moving SD, the following main points emerge from the econometric analysis that accounts for bi-directional causality. First, with shadow economy as the dependent variable, shadow economy and corruption are substitutes, and greater variability in corruption increases the shadow economy. Second, the effect of corruption variability is stronger in the short run than the long run. Third, with corruption as the dependent variable, corruption and shadow economy again turn out to be substitutes. Fourth, the effect of shadow economy variability has no statistically significant influence on corruption. Fifth, the findings are somewhat sensitive to an alternate measure of the shadow economy that covers a longer period.
Journal: Applied Economics
Pages: 239-258
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494378
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494378
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Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:239-258
Template-Type: ReDIF-Article 1.0
Author-Name: Sujay Mukhoti
Author-X-Name-First: Sujay
Author-X-Name-Last: Mukhoti
Author-Name: Pritam Ranjan
Author-X-Name-First: Pritam
Author-X-Name-Last: Ranjan
Title: A new class of discrete-time stochastic volatility model with correlated errors
Abstract:
Returns of risky assets and their time-dependent volatility are often jointly modelled by stochastic volatility models (SVMs). Over the last few decades, several SVMs have been proposed to adequately capture the features of the relationship between the return and its volatility. The earliest SVM considers a hierarchical model, with current return as a function of the current latent volatility, which is further modelled as an auto-regressive process. In an attempt to make SVM more appropriate for complex realistic market behaviour, leverage parameter was introduced, which however led to violation of martingale difference property of the risky part of return (a necessary mean-zero condition that prevents arbitrage opportunities under mild regularity conditions). Subsequently, alternative SVMs had been developed and are currently in use. In this article, we propose mean-corrections for several generalizations of SVM with leverage that capture the complex market behaviour as well as satisfy martingale difference property of returns. We also establish a few theoretical results to characterize the key desirable features of these models, and present comparison with other popular competitors. Furthermore, three real-life examples (CITI bank stock price, euro–USD rate and S&P 500 index returns) have been used to demonstrate the performance of this new class of SVMs.
Journal: Applied Economics
Pages: 259-277
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494804
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494804
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Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:259-277
Template-Type: ReDIF-Article 1.0
Author-Name: Woon Wong
Author-X-Name-First: Woon
Author-X-Name-Last: Wong
Author-Name: Iris Biefang-Frisancho Mariscal
Author-X-Name-First: Iris Biefang-Frisancho
Author-X-Name-Last: Mariscal
Author-Name: Peter Howells
Author-X-Name-First: Peter
Author-X-Name-Last: Howells
Title: Liquidity and credit risks in the UK’s financial crisis: how ‘quantitative easing’ changed the relationship
Abstract:
This article investigates the relationship between credit and liquidity risk components in the UK interbank spread during the recent financial crisis and sheds light on the transmission mechanism of the quantitative easing (QE) carried out by the Bank of England (BoE) on short-term interest rates. Specifically, we find that prior to the bank’s intervention counterparty risk was a major factor in the widening of the spread and also caused a rise in liquidity risk. However, this relationship was reversed during the period when QE was implemented. Using the accumulated value of asset purchases as a proxy for the central bank’s liquidity provisions, we provide evidence that the QE operations were successful in reducing liquidity premia and ultimately, and indirectly, credit risk. We also find evidence that suggests liquidity schemes provided by other central banks and international market sentiment contributed to the reduction of interbank spread.
Journal: Applied Economics
Pages: 278-287
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494814
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494814
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Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:278-287
Template-Type: ReDIF-Article 1.0
Author-Name: Di Zeng
Author-X-Name-First: Di
Author-X-Name-Last: Zeng
Author-Name: Michael R. Thomsen
Author-X-Name-First: Michael R.
Author-X-Name-Last: Thomsen
Author-Name: Rodolfo M. Nayga
Author-X-Name-First: Rodolfo M.
Author-X-Name-Last: Nayga
Author-Name: Heather L. Rouse
Author-X-Name-First: Heather L.
Author-X-Name-Last: Rouse
Title: Neighbourhood convenience stores and childhood weight outcomes: an instrumental variable approach
Abstract:
The association between the commercial food environment and childhood obesity is increasingly assessed in the literature, but little is known about the role of convenience stores, an important food retail format worldwide. This study helps bridge the gap using individual-level data containing measured body mass index (BMI) for public schoolchildren and geo-coded residence and store locations in Arkansas, United States. The distance from residence to the nearest highway is employed to instrument neighbourhood convenience store exposure, while controlling for possible confounding effects of other food stores. We find that exposure to at least one convenience store exposure is associated with a BMI z-score increase of 0.162 SD, and exposure to each additional convenience store is associated with a BMI increase of 0.071 SD. There is no evidence for a larger association among children from low-income families or those with limited access to healthy foods.
Journal: Applied Economics
Pages: 288-302
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495819
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495819
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Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:288-302
Template-Type: ReDIF-Article 1.0
Author-Name: Fabíola Zambom-Ferraresi
Author-X-Name-First: Fabíola
Author-X-Name-Last: Zambom-Ferraresi
Author-Name: Belén Iráizoz
Author-X-Name-First: Belén
Author-X-Name-Last: Iráizoz
Author-Name: Fernando Lera-López
Author-X-Name-First: Fernando
Author-X-Name-Last: Lera-López
Title: Are football managers as efficient as coaches? Performance analysis with and inputs in the Premier league
Abstract:
There is a controversy on sport performance literature about what type of inputs might explain more deeply the performance of sports clubs (inputs specification controversy). By one side, several papers have analysed sports teams’ performance using the match-related statistics or wages as inputs, well-known as ex post inputs. By other side, some authors have criticized the use of these ex post inputs, and recommend the use of ex ante inputs, as the market value of the players. We have analysed the performance of football teams estimating technical efficiency with three different inputs specification. The methodologies employed were data envelopment analysis (DEA) and a bootstrapped DEA. Our sample is composed by English Premier League football clubs, during three seasons (2012/13–2014/15). The DEA results indicate that the correlation between the three models is positive and significant. The DEA-bootstrapped results help to restate the robustness of the estimations and endorsed the inputs choices. The correlations of the estimations with market value and match-related statistics are the most striking (90% and 94%, DEA and bootstrapped DEA), which indicate that the existent discussion related to the use of match-related statistics as input is unjustified, because it does not affect significantly the efficiency estimations.
Journal: Applied Economics
Pages: 303-314
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495821
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495821
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Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:303-314
Template-Type: ReDIF-Article 1.0
Author-Name: J. Fitzgerald
Author-X-Name-First: J.
Author-X-Name-Last: Fitzgerald
Author-Name: J. Ryan
Author-X-Name-First: J.
Author-X-Name-Last: Ryan
Title: The impact of firm characteristics on speed of adjustment to target leverage: a UK study
Abstract:
Responding to the need to investigate heterogeneity in the speed of adjustment (SOA) to target leverage in a manner that reflects the fractional nature of leverage, we estimate SOA across sub-samples of UK firms using the Dynamic Panel Fractional (DPF) estimator. Using firm characteristics to identify firms subject to varying costs of deviation from and adjustment to target leverage, we find significant evidence of heterogeneity in the speeds at which UK firms adjust to target leverage. Our results show that small, high growth and low dividend paying firms adjust to target leverage faster than their large, low growth and high dividend paying counterparts. We also find some evidence to suggest openly held firms adjust faster than closely held firms, though our results are not robust to the categorizing criterion employed or target leverage specification.
Journal: Applied Economics
Pages: 315-327
Issue: 3
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495822
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495822
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Handle: RePEc:taf:applec:v:51:y:2019:i:3:p:315-327
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed M. Khalid
Author-X-Name-First: Ahmed M.
Author-X-Name-Last: Khalid
Author-Name: Antonio Marasco
Author-X-Name-First: Antonio
Author-X-Name-Last: Marasco
Title: Do channels of financial integration matter for FDI’s impact on growth? Empirical evidence using a panel
Abstract:
This paper adds to the debate on the relationship between foreign direct investment (FDI) and economic growth which suggest that the link between FDI and economic growth is rather the consequence of both FDI and growth responding endogenously to economic integration. We investigate if the impact of FDI on growth is dependent on the channel of integration used to attract FDI. We use four different indexes of economic integration including Trade Openness, Chinn-Ito, and KOF and our newly constructed index of financial integration. We employ these four indexes to investigate the role played by economic integration in linking FDI and growth. We use a panel consisting of 134 developing countries and data spanning the period 1989-2017 estimated using the generalized method of moments (GMM) technique. The results show that FDI is an important determinant of growth. The results also suggest that at least some of the integration variables do matter and work as channels to attract FDI leading to growth. However, after stratifying countries by income level, we also find that integration matters mainly for high income countries. Integration variables for other income groups do not show much significance. These are interesting results and may have important policy implications.
Journal: Applied Economics
Pages: 4025-4045
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588945
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588945
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Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4025-4045
Template-Type: ReDIF-Article 1.0
Author-Name: Parvaneh Shahnoori
Author-X-Name-First: Parvaneh
Author-X-Name-Last: Shahnoori
Author-Name: Glenn P. Jenkins
Author-X-Name-First: Glenn P.
Author-X-Name-Last: Jenkins
Title: The value of online banking to small and medium-sized enterprises: evidence from firms operating in the uae free trade zones
Abstract:
This study estimates the willingness to pay of small and medium-sized enterprises (SMEs) for a business online banking services. The estimation utilizes a contingent valuation method employing data from 400 SMEs in the United Arab Emirates free zones. An interval regression model is used to identify company characteristics affecting WTP. The results indicate an average WTP for online banking of $518.50 per month. Firms engaging in international trade value these services at least 10% more than those with only domestic operations. Other variables that significantly affect WTP include number of employees and the transportation cost of using traditional branch banking.
Journal: Applied Economics
Pages: 4046-4055
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588948
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588948
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Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4046-4055
Template-Type: ReDIF-Article 1.0
Author-Name: Shashika D. Rathnayaka
Author-X-Name-First: Shashika D.
Author-X-Name-Last: Rathnayaka
Author-Name: E. A. Selva Selvanathan
Author-X-Name-First: E. A. Selva
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: Consumption patterns in Sri Lanka: a decomposition analysis
Abstract:
Knowing consumer reaction to changes in prices and income is important in formulating microeconomic policies, such as public utility prices and commodity taxation. This paper analyses the consumption patterns of consumer goods grouped into eight broad commodities in Sri Lanka during the period 1975–2016, using a system-wide framework. The analysis indicates that Sri Lankan consumers allocate more than half of their income to food and nearly four fifths of their income to food, housing, and transport combined. The estimated income and own-price elasticities reveal that food, housing, medical care, and transport are necessities; clothing, durables and recreation are luxuries; and demand for all commodities is price inelastic except for recreation. To investigate the consumption growth pattern, we decomposed the growth in consumption and change in budget shares of the eight commodities into income, relative price, and change in taste. We also simulated per capita consumption expenditure of the eight commodities under various policy scenarios and found that income growth has played a significant role in Sri Lankan consumption patterns.
Journal: Applied Economics
Pages: 4056-4072
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588950
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588950
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Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4056-4072
Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Satish Kumar
Author-X-Name-First: Satish
Author-X-Name-Last: Kumar
Author-Name: Rajesh Pathak
Author-X-Name-First: Rajesh
Author-X-Name-Last: Pathak
Title: Modelling the dynamics of Bitcoin and Litecoin: GARCH versus stochastic volatility models
Abstract:
We examine and compare a large number of generalized autoregressive conditional heteroskedastic (GARCH) and stochastic volatility (SV) models using series of Bitcoin and Litecoin price returns to assess the model fit for dynamics of these cryptocurrency price returns series. The various models examined include the standard GARCH(1,1) and SV with an AR(1) log-volatility process, as well as more flexible models with jumps, volatility in mean, leverage effects, t-distributed and moving average innovations. We report that the best model for Bitcoin is SV-t while it is GARCH-t for Litecoin. Overall, the t-class of models performs better than other classes for both cryptocurrencies. For Bitcoin, the SV models consistently outperform the GARCH models and the same holds true for Litecoin in most cases. Finally, the comparison of GARCH models with GARCH-GJR models reveals that the leverage effect is not significant for cryptocurrencies, suggesting that these do not behave like stock prices.
Journal: Applied Economics
Pages: 4073-4082
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588951
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588951
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Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4073-4082
Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Ayala
Author-X-Name-First: Astrid
Author-X-Name-Last: Ayala
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Title: Score-driven models of stochastic seasonality in location and scale: an application case study of the Indian rupee to USD exchange rate
Abstract:
We estimate the stochastic seasonality of the Indian rupee (INR) to United States dollar (USD) exchange rate by using new dynamic conditional score (DCS) specifications. We use the DCS-Skew-Gen-$$t$$t
(DCS-skewed generalized t distribution) and DCS-NIG (DCS-normal-inverse Gaussian distribution) models, which are alternatives to the DCS-$$t$$t
(DCS-Student’s $$t$$t
-distribution) and DCS-EGB2 (DCS-exponential generalized beta distribution of the second kind) models from the literature. DCS models are robust to outliers, and such models effectively disentangle the local level, seasonality and irregular components. For the latter, we apply DCS-EGARCH (DCS-exponential generalized autoregressive conditional heteroscedasticity) scale dynamics, and we use new DCS models with seasonal volatility. We use INR/USD data for the period of 1 January 1982 to 7 July 2017. We find that the DCS-Skew-Gen-$$t$$t
and DCS-NIG models are superior to the DCS-$$t$$t
and DCS-EGB2 models, respectively. The amplitude of the INR/USD seasonality is relatively high during the last decade of the sample. We explain this by using the currency movements that are related to increased seasonal exports and imports of India. We show the robustness of our results for different exchange rate regimes: (i) pegged exchange rate regime period (until February 1993); (ii) liberalized exchange rate management system period (since March 1993).
Journal: Applied Economics
Pages: 4083-4103
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588952
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588952
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Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4083-4103
Template-Type: ReDIF-Article 1.0
Author-Name: Hussein Ali Abdoh
Author-X-Name-First: Hussein Ali
Author-X-Name-Last: Abdoh
Title: Product market competition and productivity shocks
Abstract:
I investigate the interaction effects of competition and productivity shocks on stocks’ earnings and returns. I find that the sensitivities of earnings and returns to productivity shocks are negatively associated with competition intensity. I also find that the excess returns of productivity shocks-sorted portfolios are lower when competition intensity is high, even after controlling for known return predictors. Overall, the empirical evidence shows firms are less exposed to productivity shocks when competition is high. As such, this study provides a possible mechanism through which the structure of product markets affects stock returns.
Journal: Applied Economics
Pages: 4104-4115
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588953
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588953
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Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4104-4115
Template-Type: ReDIF-Article 1.0
Author-Name: Jani Bekő
Author-X-Name-First: Jani
Author-X-Name-Last: Bekő
Author-Name: Timotej Jagrič
Author-X-Name-First: Timotej
Author-X-Name-Last: Jagrič
Author-Name: Dušan Fister
Author-X-Name-First: Dušan
Author-X-Name-Last: Fister
Author-Name: Christine Brown
Author-X-Name-First: Christine
Author-X-Name-Last: Brown
Author-Name: Peter Beznec
Author-X-Name-First: Peter
Author-X-Name-Last: Beznec
Author-Name: Hans Kluge
Author-X-Name-First: Hans
Author-X-Name-Last: Kluge
Author-Name: Tammy Boyce
Author-X-Name-First: Tammy
Author-X-Name-Last: Boyce
Title: The economic effects of health care systems on national economies: an input-output analysis of Slovenia
Abstract:
This paper estimates the size of the economic impact generated by the Slovenian health care sector on the national economy in the 2009–2014 period. The study separately calculates output, income, employment, value-added and import multipliers for the Slovenian health care sector based on input-output analysis covering 49 sectors. Initially, values of simple output multipliers for all years are estimated. When the re-circulation of final demand through households is added to the direct and indirect economic effects, the values of total output multipliers considerably exceeds 2. The results suggest that an additional million EUR of final demand in the health care sector will, based on different scenarios, increase the total employment by 20 to 30 units. Moreover, the type II employment multipliers imply that under the best-case scenario one employee in the health care sector creates an additional 0.7 unit of employment in remaining structures of the observed economy. Stability evaluation of the derived multipliers suggests that the domestic health care sector may reduce volatilities in production, income and employment and consequently act as an important shock absorber in the economy.
Journal: Applied Economics
Pages: 4116-4126
Issue: 37
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588955
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588955
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Handle: RePEc:taf:applec:v:51:y:2019:i:37:p:4116-4126
Template-Type: ReDIF-Article 1.0
Author-Name: Hyo-Jin Kim
Author-X-Name-First: Hyo-Jin
Author-X-Name-Last: Kim
Author-Name: Hye-Jeong Lee
Author-X-Name-First: Hye-Jeong
Author-X-Name-Last: Lee
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Title: Public willingness to pay for endocrine disrupting chemicals-free labelling policy in Korea
Abstract:
As public interest in health and safety grows, endocrine disrupting chemicals (EDC) have become an inevitable problem in society. One way to reduce the social cost of exposure to EDC is to grant a label certification to eco-friendly products that do not release EDC. The Korean government is considering introducing an EDC-free labelling policy. Therefore, our article tries to examine the public willingness to pay (WTP) for implementing the EDC-free labelling policy in Korea. For this purpose, a contingent valuation survey of 1000 Korean consumers was conducted in 2016. We used a one-and-one-half-bounded dichotomous choice question to elicit the WTP responses from the respondents. The mean of household WTP for the EDC-free labelling policy implementation is estimated to be KRW 2266 (USD 2.05) per year. When we expand the value to the whole country, it amounts to KRW 42.9 billion (USD 38.8 million) per year. These values are statistically meaningful at the 1% level and imply that the EDC-free labelling policy contributes to households’ utility and should be implemented immediately.
Journal: Applied Economics
Pages: 131-140
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494803
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494803
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Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:131-140
Template-Type: ReDIF-Article 1.0
Author-Name: Berthold Burth
Author-X-Name-First: Berthold
Author-X-Name-Last: Burth
Author-Name: Solveig Reißig-Thust
Author-X-Name-First: Solveig
Author-X-Name-Last: Reißig-Thust
Title: Private equity deal success and pre-acquisition determinants – empirical evidence from Germany
Abstract:
Shortly after a fall-back linked to recent financial crises, private equity investing has been undergoing a strong revival, especially in Germany. In a country known for the large number of small- and medium-sized companies, private equity investors can profit from a large choice of potential targets. Researchers have been broadly studying the field of private equity for many years, especially exploring post-investment value creation. But most articles missed to address the importance of pre-acquisition determinants such as target characteristics. Under these circumstances, this study focuses on exploring the relationship between pre-acquisition target characteristics and deal performance by analysing a sample of 125 transactions in Germany using an ordinal logistic regression analysis.The findings suggest that asset lightness, management experience and the healthcare industry are positively linked to the deal success by increasing the likelihood of achieving a higher return category.This implies that private equity investors active in Germany could outperform if they set according to investment preferences. Similarly, investors are likely to get a higher return from general partners who invest in companies presenting such characteristics.
Journal: Applied Economics
Pages: 141-154
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494806
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494806
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Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:141-154
Template-Type: ReDIF-Article 1.0
Author-Name: Xili Ma
Author-X-Name-First: Xili
Author-X-Name-Last: Ma
Author-Name: Huiqing Wang
Author-X-Name-First: Huiqing
Author-X-Name-Last: Wang
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: The role of emissions trading mechanisms and technological progress in achieving China’s regional clean air target: a CGE analysis
Abstract:
In this article, a multi-regional dynamic computable general equilibrium model is built to study the impacts of $${\rm{S}}{O_2}$$SO2 emissions trading and technological progress on the economy under the premise of achieving the targeted air pollution control objectives. The results show that, if air quality in the South and the Pearl River Delta reaches the national standard of level I, and other regions reach Level II by 2030 via implementing an emissions trading mechanism, the industry structure will be improved and $${\rm{C}}{O_2}$$CO2 emissions will drop 30–40% nationwide compared to the baseline scenario.
Journal: Applied Economics
Pages: 155-169
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494807
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494807
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Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:155-169
Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Ahimbisibwe
Author-X-Name-First: Isaac
Author-X-Name-Last: Ahimbisibwe
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: The contribution of millennium development goals towards improvement in major development indicators, 1990–2015
Abstract:
This study explores the contribution of Millennium Development Goals (MDGs) towards improvement in seven major development indicators during 1990-2015. The improvement in each indicator is decomposed into two parts. The first is the improvement that is likely to have occurred without the MDGs and is calculated by extrapolating to the entire period 1990-2015 the pre-MDG trend of 1990-2000. The second part is the improvement that may be attributed to the MDGs and is calculated as the actual improvement during 1990-2015 minus the part based on pre-MDG factors. The contributions are estimated for the world and six geographical regions. Apart from the huge diversity across the indicators and the regions, the exercise indicates two main points. First, MDGs did make a positive contribution to the improvement in almost all cases and it is not true that the MDGs contributed little. Second, however, the improvement attributable to the pre-MDG factors dominates contribution of the MDGs. Relative to the Sustainable Development Goals (SDGs), the study indicates that attainment of the SDG targets for access to safe water and under-5 mortality at the global level appears likely, but attainment of the targets for poverty rate, maternal mortality, and access to sanitation seems unlikely.Abbreviation EAP: East Asia & Pacific; ECA: Europe & Central Asia; LAC: Latin America & Caribbean; MENA: Middle East & North Africa; SA: South Asia; SSA: Sub-Saharan Africa; ICP: International Comparison Program; MDGs: Millennium Development Goals; SDGs: Sustainable Development Goals; UN: United Nations; UNICEF: United Nations Children’s Fund; WDI: World Development Indicators
Journal: Applied Economics
Pages: 170-180
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494808
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494808
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Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:170-180
Template-Type: ReDIF-Article 1.0
Author-Name: Joanie Buckley
Author-X-Name-First: Joanie
Author-X-Name-Last: Buckley
Author-Name: Russell Kashian
Author-X-Name-First: Russell
Author-X-Name-Last: Kashian
Title: Ownership effects among Native American banks, 2001-2016
Abstract:
Minority Depository Institutions (MDIs), including Native American Banks (NatBs), play an integral role in providing financial services to the under-served. NatBs are split between those that are Tribal owned and those owned by individual Native Americans as private banks. This research explores differences between the two, other MDIs and comparable mainstream banks, using data from 2001 to 2016. Tribal NatBs are hypothesized to emphasize community development for the under-served over profit maximization, and to take on high levels of risk. Testing uses comparisons of population means and regressions, and the overall pattern of results and limited regression findings support those possibilities.
Journal: Applied Economics
Pages: 181-195
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494810
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494810
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Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:181-195
Template-Type: ReDIF-Article 1.0
Author-Name: Cuixia Jiang
Author-X-Name-First: Cuixia
Author-X-Name-Last: Jiang
Author-Name: Xiaoyi Ding
Author-X-Name-First: Xiaoyi
Author-X-Name-Last: Ding
Author-Name: Qifa Xu
Author-X-Name-First: Qifa
Author-X-Name-Last: Xu
Author-Name: Xi Liu
Author-X-Name-First: Xi
Author-X-Name-Last: Liu
Author-Name: Yezheng Liu
Author-X-Name-First: Yezheng
Author-X-Name-Last: Liu
Title: Portfolio selection based on predictive joint return distribution
Abstract:
A predictive joint return distribution can provide more useful information than moment-based risk measures in portfolio selection. This article develops a D-vine copula-CAViaR method to estimate and predict the joint probability distribution of multiple financial returns. Furthermore, we construct a portfolio model via the generalized Omega ratio inferred from the predicted joint return distribution. The superiority of our method is illustrated through an empirical application on five international stock market indices.
Journal: Applied Economics
Pages: 196-206
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494812
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494812
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Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:196-206
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Raschke
Author-X-Name-First: Christian
Author-X-Name-Last: Raschke
Title: Unexpected windfalls, education, and mental health: evidence from lottery winners in Germany
Abstract:
This paper investigates the causal impact of large unexpected windfalls on individual mental health, physical health, as well as health behaviors. I use a large individual-level panel data set of lottery winners from Germany between the years 2000 and 2011 and observe lottery winners before and after winning a large lottery prize. Mental health declines immediately after winning a large lottery prize for individuals with low education and low levels of financial literacy. While these individuals report being happier after winning the lottery, evidence from commonly used SF-12 measures of mental health indicates that winners with low education experience increased role limitations due to emotional problems, are more anxious, and have less energy after their win. The impact on various measures of mental health is highly robust, statistically significant, economically significant, and persists for up to two years after the win. Unexpected windfalls have no impact on the mental health of individuals with high education or high financial literacy. Winning the lottery has no impact on individuals’ health behaviors such as smoking or alcohol consumption, and it has no impact on doctor visits, hospital stays, or illness-related work absences regardless of education level.
Journal: Applied Economics
Pages: 207-218
Issue: 2
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494813
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494813
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Handle: RePEc:taf:applec:v:51:y:2019:i:2:p:207-218
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Benlemlih
Author-X-Name-First: Mohammed
Author-X-Name-Last: Benlemlih
Author-Name: Jamil Jaballah
Author-X-Name-First: Jamil
Author-X-Name-Last: Jaballah
Author-Name: Jonathan Peillex
Author-X-Name-First: Jonathan
Author-X-Name-Last: Peillex
Title: Does it really pay to do better? Exploring the financial effects of changes in CSR ratings
Abstract:
Previous literature on the link between corporate social responsibility (CSR) and financial performance has focused mainly on the financial implications of a firm’s level of CSR without considering the potential effects on financial performance of variations in CSR rating. We try to fill this gap by studying whether variations in a firm’s CSR rating affect systematic risk, firm value, and portfolio performance. First, our results show that an increase in firms’ CSR efforts, as reflected by an increase in their CSR ratings, significantly reduces systematic risk. Second, a positive variation in CSR ratings significantly improves firm value. Finally, from a portfolio perspective, a strategy that consists of buying stocks that have experienced a CSR ratings increase and selling stocks that have experienced a CSR ratings decrease (or remain stable) leads to lower financial performance. Taken together, our findings provide new evidence and financial implications for firms and portfolio managers.
Journal: Applied Economics
Pages: 5464-5482
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1486997
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486997
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Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5464-5482
Template-Type: ReDIF-Article 1.0
Author-Name: María del Mar Miralles-Quiros
Author-X-Name-First: María del Mar
Author-X-Name-Last: Miralles-Quiros
Author-Name: José Luis Miralles-Quiros
Author-X-Name-First: José Luis
Author-X-Name-Last: Miralles-Quiros
Author-Name: Julio Daza-Izquierdo
Author-X-Name-First: Julio
Author-X-Name-Last: Daza-Izquierdo
Title: Growth, profits and foreign ownership in the Brazilian banking industry
Abstract:
The deregulation of the financial markets and their progressive globalization has favoured the internationalization of banking. Moreover, during the international financial crisis, the presence of foreign banks has increased in countries experiencing faster economic growth, such as Brazil. In this context, the aim of this study is to analyze the growth and profitability of the financial institutions in Brazil, taking into account the possible non-linearity of the relationship, the differences between Brazilian and foreign institutions and the effect of the crisis. Our results indicate that the entry of foreign institutions has a direct effect on the Brazilian banking industry.
Journal: Applied Economics
Pages: 5483-5494
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1486998
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486998
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Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5483-5494
Template-Type: ReDIF-Article 1.0
Author-Name: Natividad Blasco
Author-X-Name-First: Natividad
Author-X-Name-Last: Blasco
Author-Name: Pilar Corredor
Author-X-Name-First: Pilar
Author-X-Name-Last: Corredor
Author-Name: Elena Ferrer
Author-X-Name-First: Elena
Author-X-Name-Last: Ferrer
Title: Analysts herding: when does sentiment matter?
Abstract:
Herding among analysts emerges when analysts give priority to their peers’ opinions instead of their own beliefs or information. Some circumstances may enhance or restrain this type of behaviour. We postulate that market sentiment is one of them. This article analyses the effect that investor sentiment may have on analysts’ herding behaviour in the U.K. Our results suggest that ‘easy situations’ such as analysing easy-to-value securities and releasing optimistic information at times of high market sentiment clearly reduce herding practices, whereas herding clearly increases in difficult situations when analysts have to release negative information at moments of high investor sentiment.
Journal: Applied Economics
Pages: 5495-5509
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1486999
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486999
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Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5495-5509
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Reed Bergmann
Author-X-Name-First: Daniel Reed
Author-X-Name-Last: Bergmann
Author-Name: Jose Roberto Ferreira Savoia
Author-X-Name-First: Jose Roberto
Author-X-Name-Last: Ferreira Savoia
Author-Name: Claudio Felisoni de Angelo
Author-X-Name-First: Claudio
Author-X-Name-Last: Felisoni de Angelo
Author-Name: Eduardo Augusto do Rosário Contani
Author-X-Name-First: Eduardo Augusto do Rosário
Author-X-Name-Last: Contani
Author-Name: Fabiana Lopes da Silva
Author-X-Name-First: Fabiana Lopes da
Author-X-Name-Last: Silva
Title: Portfolio management with tail dependence
Abstract:
Many publications, that treated with Portfolio Management, were devastating for all asset allocation models in the context of portfolios. The elimination of extreme events (asymmetric or tail dependence) during the portfolio construction process can reduce the skills of asset managers to reduce risk through diversification. The copula theory allows us to calculate an alternative to measure the dependence of extreme events in assets through the index lower tail dependence. We check that the strategies with tail dependence overcame Talmud rule, the Markowitz model and the model of Tu and Zhou by simulating 1,000 portfolios with 3, 5, 10 and 20 randomly selected assets from DJIA for the period 03/1990 until 12/2016. We conclude that models of tail dependence and Markowitz had more performance ex-ante than Talmud and the Tu and Zhou model for portfolios with 3, 5, 10 and 20 assets. Tail dependence models overcome Markowitz, in terms of cumulative return, in over 60% of months considered in the analysis. The results indicate that the Talmud rule should be discarded in a context of constructing portfolios with individual stocks ahead strategies with tail dependence.
Journal: Applied Economics
Pages: 5510-5520
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1487000
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1487000
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Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5510-5520
Template-Type: ReDIF-Article 1.0
Author-Name: Simone Salotti
Author-X-Name-First: Simone
Author-X-Name-Last: Salotti
Author-Name: Carmine Trecroci
Author-X-Name-First: Carmine
Author-X-Name-Last: Trecroci
Title: Cross-country evidence on the distributional impact of fiscal policy
Abstract:
This article provides new evidence on the distributional effects of fiscal policy using data on a panel of OECD economies over the last four decades. We study how four measures of income inequality and poverty respond to several stock and flow variables accounting for fiscal actions. We find that increases in government debt and expenditure promote a less unequal distribution of income. We detect a significant distributional impact of education and social spending as well as of government consumption expenditure. We also investigate potential redistributive implications of large fiscal expansion and consolidation episodes finding no evidence of additional effects beyond those associated with conventional fiscal variables.Abbreviations: OECD: Organisation for Economic Co-operation and Development; GDP: Gross Domestic Product; G20: Group of 20 economies (forum of 19 dvanced and emerging countries plus the European Union); CGE: Computational General Equilibrium models; DSGE: Dynamic Stochastic General Equilibrium models; UN-WIDER: United Nations World Institute for Development Economics Research; SWIID: Standardized World Income Inequality Database; WDI: World Development Indicators; PPP: Purchasing-Power Parity; LIS: Luxembourg Income Database; GMM: Generalized Method of Moments; FE: Fixed Effects; RE: Random Effects; SE: Standard Errors; CPI: Consumer Price Index
Journal: Applied Economics
Pages: 5521-5542
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1487001
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1487001
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Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5521-5542
Template-Type: ReDIF-Article 1.0
Author-Name: J. F. M. De Jong
Author-X-Name-First: J. F. M.
Author-X-Name-Last: De Jong
Author-Name: M. Ferdinandusse
Author-X-Name-First: M.
Author-X-Name-Last: Ferdinandusse
Author-Name: J. Funda
Author-X-Name-First: J.
Author-X-Name-Last: Funda
Title: Public capital in the 21st century: as productive as ever?
Abstract:
The global financial crisis and the euro area sovereign debt crisis that followed induced a rapid deterioration in the fiscal positions of countries across the globe. In the ensuing fiscal adjustment process, public investments were severely reduced in many countries. How harmful is this for growth perspectives? Our main objective is to find out whether the importance of public capital for long run output growth has changed in recent years. To this end, we expand time series on public capital stocks for 20 OECD countries and estimate country-specific recursive vector autoregressive (VAR) models. Results show that the effect of public capital shocks on economic growth has not increased in general, although results differ widely between countries. This suggests that the current level of public investments generally does not pose an immediate threat to potential output. Of course, this could change if low investment levels are sustained for a long time.
Journal: Applied Economics
Pages: 5543-5560
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1487002
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1487002
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Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5543-5560
Template-Type: ReDIF-Article 1.0
Author-Name: Rüdiger Wapler
Author-X-Name-First: Rüdiger
Author-X-Name-Last: Wapler
Author-Name: Daniel Werner
Author-X-Name-First: Daniel
Author-X-Name-Last: Werner
Author-Name: Katja Wolf
Author-X-Name-First: Katja
Author-X-Name-Last: Wolf
Title: Active labour market policies in Germany: do regional labour markets benefit?
Abstract:
This article examines on a regional level whether active labour market policies (ALMP) improve the matching process. To take the fact of heterogeneous search effectiveness during programme participation into account, we distinguish between current and former programme participants. Our findings based on a regional augmented matching function show that higher search effectiveness due to ALMP is not outweighed by indirect effects on nonparticipants. The total number of matches in a region increases with a higher share of former programme participants among the jobseekers. However, these effects largely differ between programme types.Abbreviation OECD (Organisation for Economic Co-operation and Development)ALMP (active labour market policy)
Journal: Applied Economics
Pages: 5561-5578
Issue: 51
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1487526
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1487526
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Handle: RePEc:taf:applec:v:50:y:2018:i:51:p:5561-5578
Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Ba Trung
Author-X-Name-First: Nguyen
Author-X-Name-Last: Ba Trung
Author-Name: Taise Kaizoji
Author-X-Name-First: Taise
Author-X-Name-Last: Kaizoji
Title: Investment climate and firm productivity: an application to Vietnamese manufacturing firms
Abstract:
The fundamental aspect of a national competitive advantage is a good investment climate. Understanding the role of the investment climate in generating firm productivity has received extensive attention by policymakers and economists in many countries. The article studies the effect of different dimensions of the investment climate on firm productivity. Using a large dataset of Vietnamese manufacturing firms, the article finds that deficiencies in the investment climate are prejudicial to firm productivity and competition. Furthermore, in examining the effect of corruption in association with the quality of the business environment, the study also investigates the possibility that corruption may compensate firms for a bad investment climate or at least may neutralize the negative impact of inefficient government regulations. In other words, corruption acts as ‘speed money’ to improve the efficacy of the provision of public services or provides leeway for entrepreneurs to bypass the inefficient regulations. This situation, however, is extremely harmful to the economy in the long run because it distorts the market and erodes the incentives for productive investments. Developing countries therefore need to put much more effort into institutional reforms, especially fighting corruption and efficiency in the provision of public goods and services.
Journal: Applied Economics
Pages: 4394-4409
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282148
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282148
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Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4394-4409
Template-Type: ReDIF-Article 1.0
Author-Name: Xinxin Jiang
Author-X-Name-First: Xinxin
Author-X-Name-Last: Jiang
Author-Name: Stanley Peterburgsky
Author-X-Name-First: Stanley
Author-X-Name-Last: Peterburgsky
Title: Investment performance of shorted leveraged ETF pairs
Abstract:
We analyze investment strategies involving triple-leveraged and inverse triple-leveraged ETF pairs by simulating daily returns over a 48-year period. Our results show that many such strategies significantly outperform the S&P 500 on a risk-adjusted basis. For example, when shorting the bear triple-leveraged ETF and the bull triple-leveraged ETF in a 2:1 proportion (while going long Treasuries), we find that the average annual Sharpe ratio is more than four times higher than for the S&P 500 and that the strategy outperforms the S&P 500 in 43 of the 48 years. Our results are robust to variations in bear/bull proportions, rebalance thresholds, and underlying parameters.
Journal: Applied Economics
Pages: 4410-4427
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282149
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282149
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Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4410-4427
Template-Type: ReDIF-Article 1.0
Author-Name: Bernadetta Dwi Suatmi
Author-X-Name-First: Bernadetta Dwi
Author-X-Name-Last: Suatmi
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Trade liberalization and technical efficiency in the Indonesian chemicals industry
Abstract:
This article examines the impact of trade reform on technical efficiency on the Indonesian chemicals industry using firm-level panel data. The effects of trade reform on technical efficiency are analysed using a stochastic frontier approach. Two variables represent trade reform in this model: effective rate of protection (ERP) and import ratio (IMP). The findings of the present study suggest that both trade reform variables have significant effects on technical efficiency. The coefficient of ERP has a positive sign and is statistically significant, which means that an increase in ERP increases the inefficiency (or decreases the technical efficiency) of firms in the chemicals industry. The coefficient of IMP is negative and statistically significant, which represents the negative impact of IMP on technical inefficiency (or positive on technical efficiency). Thus, trade reform, a reduction in ERP or an increase in IMP, has an unambiguously positive effect on technical efficiency in the Indonesian chemicals industry.
Journal: Applied Economics
Pages: 4428-4439
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282150
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282150
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Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4428-4439
Template-Type: ReDIF-Article 1.0
Author-Name: Nada Ben Elhadj
Author-X-Name-First: Nada
Author-X-Name-Last: Ben Elhadj
Author-Name: Didier Laussel
Author-X-Name-First: Didier
Author-X-Name-Last: Laussel
Title: Low prices cum selective distribution versus high prices: how best to signal quality?
Abstract:
We investigate the best signalling strategy for a monopoly introducing a new product with unobservable quality when second-period sales are linked to first-period ones and the firm may tailor its distribution network to exclude some consumers. When producing a high quality product rather than a low quality one is relatively costly with respect to the increase in quality, optimal signalling is by price alone. But when the cost differential is lower, it will be optimal to set a low first-period price, not to serve all would-be consumers at this price (selective distribution) and raise the price afterwards. Paradoxically, this strategy allows a larger customer base to be reached than in the case of pure price signalling.
Journal: Applied Economics
Pages: 4440-4459
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284988
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284988
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Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4440-4459
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios P. Louzis
Author-X-Name-First: Dimitrios P.
Author-X-Name-Last: Louzis
Author-Name: Angelos T. Vouldis
Author-X-Name-First: Angelos T.
Author-X-Name-Last: Vouldis
Title: Profit strategy of Greek banks: cross-subsidization and diversification versus complementarity
Abstract:
This study analyses the profit strategy employed by banks in Greece using dynamic panel data techniques and a data set which includes proprietary supervisory data covering the whole Greek commercial banking system from 2004 to 2011. We provide evidence that banks use interest- and non-interest income (non-II) as substitutes rather than complements, with non-II representing an indirect competition instrument by the more efficient banks used in place of direct competition with their peers through prices on loans and deposits. This behaviour is explained by further decomposing the non-II into the relatively stable fees component and the volatile trading income. Moreover, we provide evidence that the net-interest income is primarily affected by the banks’ market power and their operating costs, while more efficient banks exploit their core deposit base to lever their non-II. Finally, macroeconomic developments affect both income components, which are found to be procyclical with respect to economic activity. In particular, the two income components are affected differently from inflation implying that non-II provides a natural hedge against adverse effects from deflation on interest income.
Journal: Applied Economics
Pages: 4460-4481
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284989
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284989
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Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4460-4481
Template-Type: ReDIF-Article 1.0
Author-Name: Tung Lam Dang
Author-X-Name-First: Tung Lam
Author-X-Name-Last: Dang
Author-Name: Thi Hong Hanh Huynh
Author-X-Name-First: Thi Hong Hanh
Author-X-Name-Last: Huynh
Author-Name: Manh Toan Nguyen
Author-X-Name-First: Manh Toan
Author-X-Name-Last: Nguyen
Author-Name: Thi Minh Hue Nguyen
Author-X-Name-First: Thi Minh Hue
Author-X-Name-Last: Nguyen
Title: The firm information environment and capital structure: international evidence
Abstract:
This article investigates the effect of the firm information environment, characterized by the analyst characteristics, on firms’ capital structure choices and whether this effect varies according to country-level institutional environments. Using a comprehensive international data set that covers 19 939 firms across 41 countries between 2000 and 2010, we document two key findings. First, firms with lower analyst coverage, higher forecast dispersion and higher forecast errors have higher leverage. Second, the effect of the firm information environment on corporate leverage is attenuated in countries with stronger governance mechanism and better information transparency. This result suggests that a firm’s information environment is an important factor influencing its capital structure decision and that country-level institutional environments matter to this effect.
Journal: Applied Economics
Pages: 4482-4500
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284991
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284991
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Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4482-4500
Template-Type: ReDIF-Article 1.0
Author-Name: Soon Suk Yoon
Author-X-Name-First: Soon Suk
Author-X-Name-Last: Yoon
Author-Name: Hyo Jin Kim
Author-X-Name-First: Hyo Jin
Author-X-Name-Last: Kim
Author-Name: Hongbok Lee
Author-X-Name-First: Hongbok
Author-X-Name-Last: Lee
Author-Name: Doug Waggle
Author-X-Name-First: Doug
Author-X-Name-Last: Waggle
Title: Financing preferences: evidence from the Korean market
Abstract:
We investigate the financing decisions of Korean firms during the period of 1996–2015. Korean firms follow a matching strategy for funding their cash needs. Cash inflows from investing activities are the primary source of funding for capital expenditures, and cash inflows from financing activities are the major means of covering cash outflows from financing activities. We also find that Korean firms’ financing practice of handling cash deficits can be described by the pecking order model modified and augmented by cash flow variables. Cash inflows from investing activities account for the major portion of financing to make up for cash deficits, followed by short- and long-term debt, and then equity financing.
Journal: Applied Economics
Pages: 4501-4520
Issue: 44
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1284993
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1284993
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Handle: RePEc:taf:applec:v:49:y:2017:i:44:p:4501-4520
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Bastianin
Author-X-Name-First: Andrea
Author-X-Name-Last: Bastianin
Title: Robust measures of skewness and kurtosis for macroeconomic and financial time series
Abstract:
The sample skewness and kurtosis of macroeconomic and financial time series are routinely scrutinized in the early stages of model-building and are often the central topic of studies in economics and finance. Notwithstanding the availability of several robust estimators, most scholars in economics rely on method-of-moments estimation that is known to be very sensitive to outliers. We carry out an extensive Monte Carlo analysis to evaluate the bias and root mean squared error of 12 different estimators of skewness and kurtosis. We consider nine statistical distributions that approximate the range of data generating processes of many macroeconomic and financial time series. Both in independently and identically distributed samples and in data generating processes featuring serial correlation L-moments and trimmed L-moments estimators are particularly resistant to outliers and deliver improvements over standard as well as alternative robust estimators of skewness and kurtosis. The application to 128 macroeconomic and financial time series sourced from a large, monthly frequency, database (i.e. the FRED-MD of McCracken and Ng, 2016) confirms the findings of the simulation study.
Journal: Applied Economics
Pages: 637-670
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1640862
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640862
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Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:637-670
Template-Type: ReDIF-Article 1.0
Author-Name: Ernest Gyapong
Author-X-Name-First: Ernest
Author-X-Name-Last: Gyapong
Author-Name: Maithm M. R. Khaghaany
Author-X-Name-First: Maithm M. R.
Author-X-Name-Last: Khaghaany
Author-Name: Ammad Ahmed
Author-X-Name-First: Ammad
Author-X-Name-Last: Ahmed
Title: The asymmetric role of corporate governance in CEO pay determination: evidence from South Africa
Abstract:
Previous studies suggest that CEOs may be incentivised to pursue actions aimed at restoring equity when pay deviates from the predicted CEO labour market compensation rate. This study investigates the effect of corporate governance (CG) quality on CEO pay deviation in an emerging economy characterised by weaker external corporate regulatory environment. Using a unique hand-collected data of 185 South African listed firms over a six-year period, We document that whereas CG quality impacts negatively on total CEO pay deviation, this is only conspicuous when the CEO is overpaid. CG quality has no effect on CEO compensation when the CEO is underpaid. We find that CEO underpayment reduces firm value in poorly-governed firms. In contrast, CEO overpayment has no effect on firm value irrespective of the level of CG quality. The findings imply that recent CEO pay level agitations have resulted in the design of CG mechanisms that reduces the tendency of CEO pay to adjust upwards. The results are robust to alternative econometric techniques and endogeneity concerns.
Journal: Applied Economics
Pages: 671-693
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1645280
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645280
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Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:671-693
Template-Type: ReDIF-Article 1.0
Author-Name: Yosef Bonaparte
Author-X-Name-First: Yosef
Author-X-Name-Last: Bonaparte
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Author-Name: David Koslowsky
Author-X-Name-First: David
Author-X-Name-Last: Koslowsky
Title: Birth order and portfolio choice
Abstract:
This paper examines the impact of birth order on financial decision-making. In lieu of explanations such as dissimilar parental style across children with different birth orders (due to learning and experience) or the existence of sibling externalities commonly offered in the literature to explain the impact of birth order on financial decision-making, our key conjecture is that birth order influences a host of personality traits, including risk-taking behaviour, and thus financial decisions. Indeed, we find that only born males tolerate greater financial risks and exhibit higher propensity to participate in the stock market. Irrespective of their birth order, only born individuals are 4.7–13.7% more likely to participate in the stock market. Furthermore, we also find that only born males demonstrate more activity in the financial market (higher tendencies to trade assets). Collectively, our stylized results suggest that birth order can be used as a predictor of portfolio choice decisions.
Journal: Applied Economics
Pages: 694-709
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646886
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646886
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Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:694-709
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco M. Pedraja
Author-X-Name-First: Francisco M.
Author-X-Name-Last: Pedraja
Author-Name: Cristina Polo
Author-X-Name-First: Cristina
Author-X-Name-Last: Polo
Author-Name: Javier Suárez-Pandiello
Author-X-Name-First: Javier
Author-X-Name-Last: Suárez-Pandiello
Title: Evaluating fiscal effort in heterogeneous contexts using a conditional nonparametric frontier approach
Abstract:
The aim of this paper is the estimation of a measure of the fiscal effort made by certain countries taking into account the heterogeneous contexts in which they operate over a ten-year period (2002–2011). To do this, we adopt a conditional efficiency approach that allows for accounting for those different environments in the estimation efficiency measures that we interpret as relative measures of fiscal effort. The results show that many countries labelled as inefficient in an initial analysis without considering their context become efficient when contextual variables are taken into account. There is a rather pronounced upward trend in the evolution of the conditional efficiency scores over time, especially during the later years of the analysed period. Among contextual variables considered in our evaluation, the transparency index, the income equality index and the importance of taxable income derived from natural resources are the main factors affecting fiscal effort of countries.
Journal: Applied Economics
Pages: 710-725
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1647332
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1647332
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Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:710-725
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Author-Name: Yi Wang
Author-X-Name-First: Yi
Author-X-Name-Last: Wang
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: Resolving the public-sector wage premium puzzle by indirect inference
Abstract:
This paper investigates the public-sector wage premium (PSWP) in the UK using a microfounded economic model and indirect inference (II). To answer the question whether there is public-sector wage premium, we ask an equivalent question – whether a model assuming perfect competition can explain the data. The neoclassical labour economic model is tested and estimated without introducing any ad hoc gap between the theoretical and empirical models. Popular econometric models are used as auxiliary models to summarise the data features, based on which we evaluate the distance between the observed data and the model-simulated data. We show that it is not the non-market factors, but the total costs and benefits of working in different sectors and so simple market forces, that create the public-sector wage premium. In other words, there is no inefficiency or unfairness in the labour market to justify government intervention. In addition, selection bias test can be incorporated into the indirect inference procedures in a straightforward way, and we find no evidence for it in the data.
Journal: Applied Economics
Pages: 726-741
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1648748
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1648748
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Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:726-741
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Rosas
Author-X-Name-First: Francisco
Author-X-Name-Last: Rosas
Author-Name: Santiago Acerenza
Author-X-Name-First: Santiago
Author-X-Name-Last: Acerenza
Author-Name: Peter F. Orazem
Author-X-Name-First: Peter F.
Author-X-Name-Last: Orazem
Title: Optimal pricing strategies for a cluster of goods: own- and cross-price effects with correlated tastes
Abstract:
Contingent valuation methods are used to identify observed and unobserved preferences of goods and services. We apply these methods, in the context of multivariate probit analysis, to compute willingness to pay for each product of a cluster of goods conditional on having purchased another offered good of the cluster. We also provide a derivation of compensated cross-price elasticities based on unobservable factors, proving to be convenient in situations where cross-prices are not part of the demand equations. As goods belonging to a cluster typically embed correlated taste, their pricing strategy should consider all offered goods simultaneously rather than individually. Therefore, we solve for the set of optimal prices of a social planner whose objective function weights both the producer’s revenues and the consumer’s joint latent utility. We show an application to collegiate sports events, but these methods can be extended in a straightforward fashion to other goods and services. Supplementary materials for this article are available online.Abbreviations: C30, Multiple or Simultaneous Equation Models, General; C35, Discrete Regression and Qualitative Choice Models; C40, Special Topics of Econometric and Statistical Methods; D12, Empirical Analysis of Consumer Economics; D40, Market Structure, Pricing, and Design; D60, Welfare Economics; Z20, Sport Economics
Journal: Applied Economics
Pages: 742-755
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659502
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659502
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Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:742-755
Template-Type: ReDIF-Article 1.0
Author-Name: Su-Yin Cheng
Author-X-Name-First: Su-Yin
Author-X-Name-Last: Cheng
Author-Name: Han Hou
Author-X-Name-First: Han
Author-X-Name-Last: Hou
Title: Do non-intermediation services tell us more in the finance–growth nexus?: causality evidence from eight OECD countries
Abstract:
This paper provides new evidence on a traditional finance–growth nexus through dividing financial services into financial intermediation and non-intermediation services and examining their relationships with economic growth. Applying time-series cointegration techniques and Granger causality tests for eight Organization for Economic Cooperation and Development (OECD) countries, reveals several results. First, there is a long-run equilibrium relationship among economic growth, intermediation activities, and non-intermediation activities in Austria, France, and Korea. Second, non-intermediation services impede long-run economic growth in Austria and France, whereas non-intermediation business and financial intermediation services accelerate Korea’s long-term growth. Third, weak exogeneity tests support long-run bi-directional causality and the supply-leading hypothesis in terms of the relationship between financial services and economic growth. Finally, the influences of intermediation and non-intermediation activities on economic growth vary across countries, financial services, and time periods, indicating that countries should adopt different financial services to enhance long- or short-term economic growth. This paper emphasizes the importance of non-intermediation activities in the growth process and in the development of intermediation services.
Journal: Applied Economics
Pages: 756-768
Issue: 7
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659928
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659928
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Handle: RePEc:taf:applec:v:52:y:2020:i:7:p:756-768
Template-Type: ReDIF-Article 1.0
Author-Name: Dror Parnes
Author-X-Name-First: Dror
Author-X-Name-Last: Parnes
Author-Name: Sagi Akron
Author-X-Name-First: Sagi
Author-X-Name-Last: Akron
Title: Rating the credit rating agencies
Abstract:
We offer herein several policy tools that can assist the new Office of Credit Ratings within the Securities and Exchange Commission in assessing the quality of past credit ratings and thus measuring the inclusive competency of credit rating agencies. We propose to weigh the degrees of accuracy, consistency and total synchronization between a tested sample of past ratings and a benchmark array of flawless ratings. We also discuss various techniques to handle major discrepancies between these two arrays of credit ratings. We further explain and demonstrate the importance of different sample sizes. In addition, we present a simple approach to estimate the probability of convergence between the two matched sets of ratings under specified governing thresholds. Lastly, we illustrate the bulk of the theory with a concise empirical investigation.
Journal: Applied Economics
Pages: 4799-4812
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164826
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164826
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Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4799-4812
Template-Type: ReDIF-Article 1.0
Author-Name: Son Nghiem
Author-X-Name-First: Son
Author-X-Name-Last: Nghiem
Author-Name: Rasheda Khanam
Author-X-Name-First: Rasheda
Author-X-Name-Last: Khanam
Title: Childhood obesity and the income gradient: evidence from Australia
Abstract:
This article examines the dynamic nature of human capital formation in the context of childhood obesity and the association of household income and childhood obesity in Australia using the first five waves of the Longitudinal Study of Australian Children. Our results show a strong evidence of dynamic nature of child obesity: the lag obesity is a significant and robust predictor of obesity in the current period. We also found that the main channel for childhood obesity is inter-generational trait: the probability of obesity in children born to an obese mother or father is 15% higher than that of other children. Other important determinants are lifestyle factors, including the consumption of drinks with a high sugar content and the amount of time watching TV. Income becomes an insignificant determinant of childhood obesity once we control for unobserved individual heterogeneity.
Journal: Applied Economics
Pages: 4813-4822
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164827
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164827
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Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4813-4822
Template-Type: ReDIF-Article 1.0
Author-Name: Misbah Tanveer Choudhry
Author-X-Name-First: Misbah Tanveer
Author-X-Name-Last: Choudhry
Author-Name: Enrico Marelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Marelli
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: Age dependency and labour productivity divergence
Abstract:
This study finds strong empirical evidence in favour of the hypothesis that the age composition of population matters for labour productivity growth. We applied the fixed effects panel model using data on a large number of countries over the period 1980–2010. Our results suggest that higher age dependency not only directly impacts negatively on labour productivity but also modifies the impact of other determinants of labour productivity. Child dependency has a more adverse effect on labour productivity than old age dependency. We specifically find that the marginal effects of gross capital formation, information and communication improvement, and labour market reforms are significant at lower levels of age dependency. However, the marginal effect of savings on labour productivity is high at a high level of age dependency. The impact of age dependency varies between developed and developing economies. Diversity in the size and nature of age dependency across regions and different income groups help to explain the labour productivity differential across them.
Journal: Applied Economics
Pages: 4823-4845
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167823
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167823
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Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4823-4845
Template-Type: ReDIF-Article 1.0
Author-Name: Thiago Carlomagno Carlo
Author-X-Name-First: Thiago Carlomagno
Author-X-Name-Last: Carlo
Author-Name: Emerson Fernandes Marçal
Author-X-Name-First: Emerson Fernandes
Author-X-Name-Last: Marçal
Title: Forecasting Brazilian inflation by its aggregate and disaggregated data: a test of predictive power by forecast horizon
Abstract:
This work aims to compare the forecast efficiency of different types of methodologies applied to Brazilian consumer inflation (Índice de Preços ao Consumidor Amplo; IPCA). We will compare forecasting models using disaggregated and aggregated data from IPCA over 12 months ahead. We used IPCA in a monthly basis, over the period between January 1996 and March 2012. Out-of-sample analysis will be made through the period of January 2008 to March 2012. The disaggregated models were estimated by Seasonal Autoregressive Integrated Moving Average (SARIMA) and will have different levels of disaggregation from IPCA as groups and items, as well as disaggregation with more economic sense used by Brazilian Central Bank as: (1) services, monitored prices, food and industrials and (2) durables, non-durables, semi-durables, services and monitored prices. Aggregated models will be estimated by time series techniques as SARIMA, state-space structural models and Markov-switching. The forecasting accuracy among models will be made by the selection model procedure known as Model Confidence Set developed by Peter Hansen, Asger Lunde and James Nason. We were able to find evidence of forecast accuracy gains in models using more disaggregated rather than aggregate data.
Journal: Applied Economics
Pages: 4846-4860
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167824
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167824
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Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4846-4860
Template-Type: ReDIF-Article 1.0
Author-Name: Md. Al Mamun
Author-X-Name-First: Md.
Author-X-Name-Last: Al Mamun
Author-Name: Kazi Sohag
Author-X-Name-First: Kazi
Author-X-Name-Last: Sohag
Author-Name: Nahla Samargandi
Author-X-Name-First: Nahla
Author-X-Name-Last: Samargandi
Author-Name: Farida Yasmeen
Author-X-Name-First: Farida
Author-X-Name-Last: Yasmeen
Title: Does remittance fuel labour productivity in Bangladesh? The application of an asymmetric non-linear ARDL approach
Abstract:
Bangladesh, a labour-abundant country, is finally learning to reap gains from her labour abundance. The historical under-optimized capital–labour ratio of Bangladesh is slowly moving towards its optimum as the migration of its labour force and consequent inflow of remittance strategically converts its abundant labour into capital. Though the fear that remittance as an alternative source of earning may result in Dutch disease for existing family members; annual data for 1982–2013 and through applying standard testing methodologies, our empirical findings suggest that such a fear is not valid since remittance flow significantly improves domestic labour productivity in Bangladesh in the long run.
Journal: Applied Economics
Pages: 4861-4877
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167825
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167825
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Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4861-4877
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Deacle
Author-X-Name-First: Scott
Author-X-Name-Last: Deacle
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Title: Cost of debt and federal home loan bank funding at U.S. bank and thrift holding companies
Abstract:
We investigate the relationship between the cost of debt issued by bank holding companies (BHCs) and thrift holding companies (THCs) and their use of Federal Home Loan Bank (FHLB) advances. Cost of debt is used as a measure of bank riskiness for the first time in a FHLB study. A two-equation model of FHLB advances and cost of debt is estimated. Three main results are obtained. First, greater reliance on advances by BHCs and THCs is associated with lower cost of debt in the pre-crisis period, and more strongly so during the crisis, because granting of advances sends a positive signal to the market about FHLB’s support. Second, greater holding company (HC) cost of debt, as an explanatory variable, is associated with smaller advances as FHLBs restrict advances to riskier HCs. Third, we find no separate effect on the cost of debt from FHLB membership. Our results are robust to 3SLS estimation, used to address endogeneity, and to alternative model specifications. The negative association between cost of debt and advances suggests that BHCs and THCs do not use advances to make riskier loans and that FHLB policies and services have some risk-reducing effects which more than offset the effect of potential moral hazards.
Journal: Applied Economics
Pages: 4878-4893
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167826
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167826
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Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4878-4893
Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Rosário da Barrosa
Author-X-Name-First: Marcelo Rosário
Author-X-Name-Last: da Barrosa
Author-Name: Arthur Valle Salles
Author-X-Name-First: Arthur Valle
Author-X-Name-Last: Salles
Author-Name: Celma de Oliveira Ribeiro
Author-X-Name-First: Celma de Oliveira
Author-X-Name-Last: Ribeiro
Title: Portfolio optimization through Kriging methods
Abstract:
This article presents a new methodology for optimizing financial asset portfolios. The proposed methodology, based on the Kriging method, allows for approximating the risk surface – and thus the optimal solution to the problem – in a generalized fashion, relaxing every restrictive hypothesis inherent to the available methods and with the ability to estimate the error in the risk surface approximation. Illustratively, the proposed methodology is applied to the portfolio problem with the Variance, VaR and CVaR as objective functions. The results are compared to those obtained using the Khun–Tucker technique, for the former, and the Rockafellar method, for the latter.
Journal: Applied Economics
Pages: 4894-4905
Issue: 50
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1167827
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1167827
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Handle: RePEc:taf:applec:v:48:y:2016:i:50:p:4894-4905
Template-Type: ReDIF-Article 1.0
Author-Name: Walter Briec
Author-X-Name-First: Walter
Author-X-Name-Last: Briec
Author-Name: Kristiaan Kerstens
Author-X-Name-First: Kristiaan
Author-X-Name-Last: Kerstens
Author-Name: Ignace Van de Woestyne
Author-X-Name-First: Ignace
Author-X-Name-Last: Van de Woestyne
Title: Hypercongestion in production correspondences: an empirical exploration
Abstract:
This empirical contribution reviews the rather limited existing literature measuring congestion in production. It first compares current ways to measure congestion using nonparametric specifications of technologies. In particular, it focuses on the magnitude and incidence of the congestion detected in empirical studies using traditional radial efficiency measures. Thereafter, it shows the limitations of this radial measurement and how alternative measurement schemes may reveal higher amounts of congestion. Then, the new, more general methodology of measuring S-congestion is presented. In particular, we first present a numerical example to illustrate the way the S-disposable technologies allow to capture more extreme forms of congestion by setting empirically determined upper bounds to the wasting of inputs. Then, an empirical illustration is presented based on an existing sample of data. A final section concludes.
Journal: Applied Economics
Pages: 2938-2956
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412080
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412080
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Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2938-2956
Template-Type: ReDIF-Article 1.0
Author-Name: J.D. Pitts
Author-X-Name-First: J.D.
Author-X-Name-Last: Pitts
Author-Name: B. Evans
Author-X-Name-First: B.
Author-X-Name-Last: Evans
Title: Evidence on the importance of cognitive ability tests for NFL quarterbacks: what are the relationships among Wonderlic scores, draft positions and NFL performance outcomes?
Abstract:
Employing data on National Football League (NFL) quarterbacks drafted between 2002 and 2012, the authors consider whether factors correlated with a quarterback being more productive in the NFL are the same factors that correlate with an improved draft position. In particular, the authors consider the relevance of scores on the Wonderlic test. Contrary to all prior literature on the subject, the authors find that performance on the Wonderlic test is positively correlated with NFL performance. However, the authors find no clear evidence that Wonderlic scores are correlated with draft position. Beyond this primary finding, the authors reveal many other interesting results that should help researchers better understand a quarterback’s progression from college to the NFL.
Journal: Applied Economics
Pages: 2957-2966
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412081
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412081
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Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2957-2966
Template-Type: ReDIF-Article 1.0
Author-Name: María L. Gallén
Author-X-Name-First: María L.
Author-X-Name-Last: Gallén
Author-Name: Carlos Peraita
Author-X-Name-First: Carlos
Author-X-Name-Last: Peraita
Title: The effects of national culture on corporate social responsibility disclosure: a cross-country comparison
Abstract:
This article presents a cross-country analysis of the influence of national culture on corporate social responsibility (CSR) disclosure. We analyse the relationship between the Hofstede’s cultural dimensions and the sustainability disclosure with the GDP per capita (GDPPC) of 44 countries, using panel data with information based on the Global Reporting Initiative guidelines. The governance effectiveness and the foreign direct investment are also included in the analysis. The results show that in countries with higher GDPPC, the CSR disclosure is negatively related to individualism and masculinity and positively related to uncertainty avoidance and indulgence. When focusing in countries with lower GDPPC, the results suggest that CSR disclosure is negatively related to power distance and positively related to uncertainty avoidance. Moreover, five of the six Hofstede’s cultural dimensions negatively affect sustainability disclosure in countries with middle GDPPC.
Journal: Applied Economics
Pages: 2967-2979
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412082
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412082
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Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2967-2979
Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Clot
Author-X-Name-First: Sophie
Author-X-Name-Last: Clot
Author-Name: Gilles Grolleau
Author-X-Name-First: Gilles
Author-X-Name-Last: Grolleau
Author-Name: Lisette Ibanez
Author-X-Name-First: Lisette
Author-X-Name-Last: Ibanez
Title: Moral self-licencing and social dilemmas: an experimental analysis from a taking game in Madagascar
Abstract:
This article explores whether previous good deeds may license antisocial behaviour, such as appropriating a social surplus for private benefits, in a developing country context, namely Madagascar. We design a two-step framed experiment, with one control treatment (a neutral task) and three test treatments (tasks enabling subjects to earn moral credits in three different ways), followed by a taking game in which subjects are given the opportunity to take an amount from a fund allocated to their University. On average, we find that participants in the three licencing conditions appropriate more than those in the control group and that further differences emerge according to the way the moral credits have been earned.
Journal: Applied Economics
Pages: 2980-2991
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412083
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412083
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Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2980-2991
Template-Type: ReDIF-Article 1.0
Author-Name: Sara Helms McCarty
Author-X-Name-First: Sara Helms
Author-X-Name-Last: McCarty
Author-Name: Erik Angner
Author-X-Name-First: Erik
Author-X-Name-Last: Angner
Author-Name: Brian Scott
Author-X-Name-First: Brian
Author-X-Name-Last: Scott
Author-Name: Sarah Culver
Author-X-Name-First: Sarah
Author-X-Name-Last: Culver
Title: Mandated volunteering: an experimental approach
Abstract:
This study employs a novel experimental paradigm to examine crowdout effects in volunteering. Using a framework modelled upon money donation experiments, we examine the impact of ‘forced’ volunteering on the amount of time volunteered. We find that subjects exposed to forced volunteering on the mean voluntarily donate less time than subjects in the control condition. Among religious subjects, the crowdout is 52.8%, suggesting warm-glow giving. Among non-religious subjects, the crowdout is 138%, implying altruistic giving. Thus, policies mandating volunteer activity may be associated with sizeable crowdout effects and might have heterogeneous effects across subpopulations.
Journal: Applied Economics
Pages: 2992-3006
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414931
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414931
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Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:2992-3006
Template-Type: ReDIF-Article 1.0
Author-Name: Mark J. Gibson
Author-X-Name-First: Mark J.
Author-X-Name-Last: Gibson
Author-Name: Qianqian Wang
Author-X-Name-First: Qianqian
Author-X-Name-Last: Wang
Title: Sanitary and phytosanitary measures in Chinese agricultural exports: the role of trade intermediaries
Abstract:
We study the effect of sanitary and phytosanitary (SPS) measures on Chinese agricultural exports and the role of trade intermediaries in this process following China’s accession to the World Trade Organization. While both agricultural exports and SPS regulations have grown, the use of trade intermediaries has declined sharply. We develop a model of heterogeneous producer-level decisions about choice of export mode that is consistent with this trend. In our econometric analysis, we analyse the effects of SPS measures and trade intermediaries on Chinese fruit and vegetable exports using transaction-level customs data. In contrast to much of the literature, we find some evidence of positive relationships among SPS measures, trade intermediaries and exports.
Journal: Applied Economics
Pages: 3007-3015
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414932
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414932
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Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:3007-3015
Template-Type: ReDIF-Article 1.0
Author-Name: Ryan M. McKenna
Author-X-Name-First: Ryan M.
Author-X-Name-Last: McKenna
Author-Name: Debra Dwyer
Author-X-Name-First: Debra
Author-X-Name-Last: Dwyer
Author-Name: John A. Rizzo
Author-X-Name-First: John A.
Author-X-Name-Last: Rizzo
Title: Is HIT a hit? The impact of health information technology on inpatient hospital outcomes
Abstract:
In an effort to eliminate inefficiencies in the US health care sector, policymakers have made a concerted effort to encourage hospitals and physicians to adopt health information technology (HIT) systems. Using a unique data set on HIT adoption and health outcomes in New York State, we conduct a hospital-level analysis identifying the impact of adopting HIT on inpatient outcomes (rates of adverse drug events and severity-adjusted mortality). Unlike previous studies, the patient population is not restricted to Medicare patients, but covers all ages and insurance types. After controlling for unobserved hospital quality and endogenous HIT adoption, our results suggest that a hospital’s severity-adjusted mortality decreases by 0.3 percentage points. When restricted to the Medicare patients, we find HIT adoption lowers a hospital’s severity-adjusted mortality rate by 0.5 percentage points. We find HIT to have no significant effect on the rate of ADEs.
Journal: Applied Economics
Pages: 3016-3028
Issue: 27
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1414934
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1414934
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Handle: RePEc:taf:applec:v:50:y:2018:i:27:p:3016-3028
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: Hiroaki Suenaga
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Suenaga
Title: The determinants of price in 3G spectrum auctions
Abstract:
This article examined the empirical relationship between prices paid for national 3G wireless licenses when spectrums were sold by auction. The reduced-form modelling approach was based on the premise that auction design features can, and do, affect both final (revenue) and intermediate (viz., auction competitiveness and license assignment) auction outcomes. Importantly, the analysis recognizes, and explicitly allows for, the endogeneity of bidder entry and sample selection arising from an absence of bidding. Generally, these key features have only received attention in isolation. In particular, the study addressed the principal question of: which regulator chosen auction design variables determine prices paid in spectrum auctions? The analysis showed that flexible-package formats increased prices paid, and that higher reserve prices had a dampening effect. The article also showed that longer license terms and more competitive auctions (as measured by the bidders-to-licenses ratio) enhance prices paid.
Journal: Applied Economics
Pages: 3129-3140
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254342
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254342
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Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3129-3140
Template-Type: ReDIF-Article 1.0
Author-Name: Elias Oikarinen
Author-X-Name-First: Elias
Author-X-Name-Last: Oikarinen
Author-Name: Heidi Falkenbach
Author-X-Name-First: Heidi
Author-X-Name-Last: Falkenbach
Title: Foreign investors’ influence on the real estate market capitalization rate – evidence from a small open economy
Abstract:
This article adds to the scarce literature on the influence of international investment flows on local real estate values. We hypothesize that a greater foreign-investor presence in a real estate market results in a lower capitalization rate and examine whether this holds true in the Helsinki CBD office market in Finland. This market provides an interesting case study by being part of a small open economy, in which the presence of foreign investors has substantially varied over time. The Dynamic OLS estimations using data for the period 1990–2015 provide support for the hypothesis. The baseline results show a highly statistically significant negative impact of foreign-investor participation on the capitalization rate, the point estimates indicating that a 10% point growth in the share of foreign buyers of the total transaction volume decreases the cap rate by approximately 30 basis points.
Journal: Applied Economics
Pages: 3141-3155
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254343
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254343
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Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3141-3155
Template-Type: ReDIF-Article 1.0
Author-Name: Régis Chenavaz
Author-X-Name-First: Régis
Author-X-Name-Last: Chenavaz
Title: Dynamic quality policies with reference quality effects
Abstract:
Dynamic pricing policies with reference-price demand have been intensely analysed. Less studied are dynamic quality policies with reference-quality demand. This article studies the dynamic quality policy of a firm whose consumers use a reference point in their decision-making, in line with the principles of behavioural economics. More specifically, I consider reference quality formation in an optimal control setting. By solving on the basis of Pontryagin’s maximum principle, I obtain analytical solutions to the optimal quality policy. The managerial implications of quality reference for dynamic quality policy are discussed.
Journal: Applied Economics
Pages: 3156-3162
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254345
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254345
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Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3156-3162
Template-Type: ReDIF-Article 1.0
Author-Name: G. C. Montes
Author-X-Name-First: G. C.
Author-X-Name-Last: Montes
Author-Name: R. T. F. Nicolay
Author-X-Name-First: R. T. F.
Author-X-Name-Last: Nicolay
Title: Does clarity of central bank communication affect credibility? Evidences considering governor-specific effects
Abstract:
Central banks have made great efforts to increase transparency and accountability to the public. Since then, studies seek empirical evidences about the effects of monetary policy communication over agent’s expectations. The recent literature on central bank communication draws attention to the importance of clarity of central bank communication. However, researches on this theme are still scarce, and there are few empirical studies with conclusive findings. Our study seeks empirical evidences on the relation between clarity of central bank communication and credibility of monetary policy. Estimates through different methods aim to identify whether clarity of central bank communication improves credibility. The study is the first to provide empirical evidence that a clearer communication can improve credibility. We also consider the differences between the two governors who ruled the Central Bank of Brazil in the period under analysis. The results indicate that a clear communication can improve credibility, but it depends on the commitment of the central banker with the goal of inflation control. Furthermore, estimates based on quantile regression indicate that the benefit brought by the clarity to the credibility depends on the commitment of the monetary authority with the goal guiding inflation expectations.
Journal: Applied Economics
Pages: 3163-3180
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1254346
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1254346
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Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3163-3180
Template-Type: ReDIF-Article 1.0
Author-Name: Q. Marin
Author-X-Name-First: Q.
Author-X-Name-Last: Marin
Author-Name: A. B. Hernández-Lara
Author-X-Name-First: A. B.
Author-X-Name-Last: Hernández-Lara
Author-Name: F. Campa-Planas
Author-X-Name-First: F.
Author-X-Name-Last: Campa-Planas
Author-Name: M. V. Sánchez-Rebull
Author-X-Name-First: M. V.
Author-X-Name-Last: Sánchez-Rebull
Title: Which factors improve the performance of the internationalization process? Focus on family firms
Abstract:
This study aimed to analyse the impact that the financial features and characteristics of the ownership structures of international companies exert on the performance of their internationalization process, as perceived by managers, and attempted to detect differences between family firms (FF) and nonfamily firms (non-FF). In addition, the impact of these characteristics and others related to FF, such as family ownership and generation, on the perceived performance of their internationalization is analysed. Based on a sample of Spanish companies with direct investment in China, the results indicated that, from the managers’ perspective, being an FF and having lower financial leverage exerted a positive effect on the performance of the internationalization process. Moreover, the study proved that this performance was strongly and positively related to the financial results of the company, and this positive effect was even stronger in the case of FF. Finally, the findings also showed that FF with a higher involvement of the family in their ownership recognized a better performance of their internationalization process. These results will be useful for companies that are considering the value of internationalization as a strategy to improve or maintain their financial results, and they also highlight certain differences between FF and non-FF.
Journal: Applied Economics
Pages: 3181-3194
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257103
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257103
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Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3181-3194
Template-Type: ReDIF-Article 1.0
Author-Name: Charilaos Mertzanis
Author-X-Name-First: Charilaos
Author-X-Name-Last: Mertzanis
Title: Ownership structure and access to finance in developing countries
Abstract:
Microsurvey data are used to explore the impact of ownership structure and other firm-specific characteristics on firms’ access to finance in 136 developing countries. The analysis uses a consistent and large data set from the World Bank’s Enterprise Surveys (ESs). The results show that ownership structure is a significant predictor of firms’ access to finance but with qualifications. Specifically, private and foreign ownership are more robust predictors of firms financing constraints in developing countries, whilst government ownership and large owners appear significant in accordance with the controlling conditions and mostly in low-income countries. The predictive power and direction of firms’ ownership structure is mitigated by both the specific characteristics of firms and the manner in which country-level factors affect the level of economic and financial activity in a country as well as the individual and social behaviour towards financial contracting.
Journal: Applied Economics
Pages: 3195-3213
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257106
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257106
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Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3195-3213
Template-Type: ReDIF-Article 1.0
Author-Name: Sofiane Aboura
Author-X-Name-First: Sofiane
Author-X-Name-Last: Aboura
Author-Name: Y. Eser Arisoy
Author-X-Name-First: Y. Eser
Author-X-Name-Last: Arisoy
Title: Does aggregate uncertainty explain size and value anomalies?
Abstract:
This paper examines the impact of aggregate uncertainty on return dynamics of size and book-to-market ratio sorted portfolios. Using VVIX as a proxy for aggregate uncertainty, and controlling for market risk, volatility risk, correlation risk and the variance risk premium, we document significant portfolio return exposures to aggregate uncertainty. In particular, portfolios that contain small and value stocks have significant and negative uncertainty betas, whereas portfolios of large and growth stocks exhibit positive and significant uncertainty betas. Using a quasi-natural experimental setting around the financial crisis, we confirm the differential sensitivity of small versus big and value versus growth portfolios to aggregate uncertainty. We posit that due to their negative uncertainty betas, uncertainty-averse investors demand extra compensation to hold small and value stocks. Our results offer an uncertainty-based explanation to size and value anomalies.
Journal: Applied Economics
Pages: 3214-3230
Issue: 32
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257107
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257107
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Handle: RePEc:taf:applec:v:49:y:2017:i:32:p:3214-3230
Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Author-Name: Georgia Kosmopoulou
Author-X-Name-First: Georgia
Author-X-Name-Last: Kosmopoulou
Title: The impact of regional competition on the health care industry
Abstract:
We investigate factors that determine firm markups by employing data on prices and quantities of various medical procedures at major hospitals in the United States. We focus on the impact of hospital quality, rival competition and the number of medical procedures upon the health care demand. Our analysis covers health-care markets across the United States with the market definition based upon the hospital referral regions. Our findings highlight potential implications of the relationship between hospital markups and market structure.
Journal: Applied Economics
Pages: 5135-5141
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1467551
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467551
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Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5135-5141
Template-Type: ReDIF-Article 1.0
Author-Name: Abu Reza Mohammad Islam
Author-X-Name-First: Abu Reza Mohammad
Author-X-Name-Last: Islam
Author-Name: Robin Hang Luo
Author-X-Name-First: Robin Hang
Author-X-Name-Last: Luo
Title: Financing constraints and investment efficiency: evidence from a panel of Canadian forest firms
Abstract:
This article examines the financial constraint of 18 listed Canadian forest firms between 2000 and 2014 following the stochastic frontier approach. Empirical results support the observation that Canadian forest firms have a strong dependence of using both equity financing and debt financing as the coefficients of both equity and debt financing mean functions are significant at 1% level. The distribution of investment efficiency index (IEI) of all 18 firms demonstrates a loss of around 40% of the rate of investment due to financing constraints. Regional analysis demonstrates that the time-varying patters of IEI of three provinces are significantly different.
Journal: Applied Economics
Pages: 5142-5154
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1478387
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1478387
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Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5142-5154
Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Tang
Author-X-Name-First: Xuan
Author-X-Name-Last: Tang
Author-Name: Xiaona Zheng
Author-X-Name-First: Xiaona
Author-X-Name-Last: Zheng
Title: Optimal pricing when rational consumers anticipate monitoring cost
Abstract:
This article considers a monopolistic firm’s optimal pricing decision over two periods among dynamic pricing, preannounced pricing and single pricing. In the models, consumers rationally determine whether to exhibit strategic waiting by weighing their costs against prospectively lower price. Our analysis yields three main results. First, single pricing that completely eliminates strategic waiting surely would be dominated by intertemporal pricing when facing rational consumers. Second, preannounced pricing may actually yield lower revenue than dynamic pricing when considering its effect on the reduction of consumer monitoring cost. Only when monitoring costs under dynamic pricing and under preannounced pricing are equal, is firm revenue weakly greater under preannounced pricing than under dynamic pricing. Third, in dynamic pricing equilibrium, increasing monitoring cost may increase firm revenue, consumer surplus and social welfare simultaneously.
Journal: Applied Economics
Pages: 5155-5163
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486010
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486010
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Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5155-5163
Template-Type: ReDIF-Article 1.0
Author-Name: Gosse A.G. Alserda
Author-X-Name-First: Gosse A.G.
Author-X-Name-Last: Alserda
Author-Name: Jacob A. Bikker
Author-X-Name-First: Jacob A.
Author-X-Name-Last: Bikker
Author-Name: Fieke S.G. Van Der Lecq
Author-X-Name-First: Fieke S.G.
Author-X-Name-Last: Van Der Lecq
Title: X-efficiency and economies of scale in pension fund administration and investment
Abstract:
Pension funds’ operating costs impair pension benefits, so it is crucial for pension funds to operate at the lowest cost possible. In practice, we observe substantial differences in costs per member for Dutch pension funds, both across and within pension fund size classes. This article presents new estimates of scale economies of pension funds and is the first that also measures pension fund X-inefficiency. We use a unique supervisory data set which distinguishes between administrative and investment costs and apply various approaches and models. Our estimates show large economies of scale for pension fund administrations, but modest diseconomies of scale for investment activities. We also found that many pension funds have substantial X-inefficiencies for both administrative and investment activities. The two kinds of inefficiency differ across types of pension funds. Therefore, most pension funds should be able to improve their cost performance, and hence increase pension benefits.
Journal: Applied Economics
Pages: 5164-5188
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486011
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486011
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Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5164-5188
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew J Cassey
Author-X-Name-First: Andrew J
Author-X-Name-Last: Cassey
Author-Name: Ben O Smith
Author-X-Name-First: Ben O
Author-X-Name-Last: Smith
Title: Estimating state-industry employment, with an application to industrial localization
Abstract:
We describe a method to construct an industry-by-state repeated cross-section of employment at the most disaggregated level publicly available, covering 1963–2012. Nondisclosed data are estimated with a procedure using the hierarchical information structure. To illustrate the usefulness of the procedure, the resulting estimated data are tested to determine if industrial localization of the processed food sector has changed over the last 50 years in the United States. Our findings suggest it has not changed systemically despite variation in levels of localization within industries.
Journal: Applied Economics
Pages: 5189-5203
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486012
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486012
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Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5189-5203
Template-Type: ReDIF-Article 1.0
Author-Name: Falko Fecht
Author-X-Name-First: Falko
Author-X-Name-Last: Fecht
Author-Name: Stefan Reitz
Author-X-Name-First: Stefan
Author-X-Name-Last: Reitz
Title: Dealer behaviour in the Euro money market during times of crisis
Abstract:
This article shows how the recent money market disruptions with elevated counterparty risks and uncertainty about the fundamental value of liquidity influenced the trading behaviour of a key dealer in the Euro money market. The complete trading record in the unsecured segment of the money market for 2007 and 2008 is used to estimate a stylized pricing model, which explicitly accounts for the over-the-counter structure. The empirical results suggest that the market maker learns from order flow, but this information aggregation was increasingly hampered as the crisis unfolded.
Journal: Applied Economics
Pages: 5204-5219
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486014
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486014
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Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5204-5219
Template-Type: ReDIF-Article 1.0
Author-Name: Blaise Gnimassoun
Author-X-Name-First: Blaise
Author-X-Name-Last: Gnimassoun
Author-Name: Désiré Avom
Author-X-Name-First: Désiré
Author-X-Name-Last: Avom
Author-Name: Joseph Keneck Massil
Author-X-Name-First: Joseph
Author-X-Name-Last: Keneck Massil
Title: Is regional integration in the CFA zone sustainable?
Abstract:
This article aims to study the long-term sustainability of regional integration in the (Communauté Financière Africaine) CFA zone, based on the theory of the endogeneity of monetary zones. To this end, we consider trade and intra-CFA migration as the two quantitative vectors of regional integration. Using robust estimation techniques to overcome the endogeneity bias, our results show that integration in the CFA zone is moderately sustainable. More precisely, while the monetary unions of the CFA zone, in particular that of the WAEMU, contribute to reinforcing the intra-regional mobility of goods and people, they fail to induce strong synchronization of the macroeconomic cycles.
Journal: Applied Economics
Pages: 5220-5237
Issue: 48
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486015
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486015
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Handle: RePEc:taf:applec:v:50:y:2018:i:48:p:5220-5237
Template-Type: ReDIF-Article 1.0
Author-Name: Lydie Ancelot
Author-X-Name-First: Lydie
Author-X-Name-Last: Ancelot
Author-Name: Liliane Bonnal
Author-X-Name-First: Liliane
Author-X-Name-Last: Bonnal
Author-Name: Marc-Hubert Depret
Author-X-Name-First: Marc-Hubert
Author-X-Name-Last: Depret
Author-Name: Pascal Favard
Author-X-Name-First: Pascal
Author-X-Name-Last: Favard
Author-Name: Dănuţ-Vasile Jemna
Author-X-Name-First: Dănuţ-Vasile
Author-X-Name-Last: Jemna
Author-Name: Christiana Brigitte Sandu
Author-X-Name-First: Christiana Brigitte
Author-X-Name-Last: Sandu
Title: Unmet need for health care during pregnancy: A French – Romanian comparison
Abstract:
Health inequalities emerge from birth, the early neonatal mortality and infant mortality rates being different between countries. These differences may be related to inequalities in use of health care during pregnancy. The aim of this research is to identify and compare the profiles of women who do not follow pregnancy health care recommendations in two European countries with different health systems and indicators: namely France and Romania. However, health care recommendations for pregnant women are free in the two countries. Firstly, unmet need for health care during pregnancy is observed. Secondly, our results reveal that there is a relationship between perinatal health care abandonment and several forms of inequalities (social, informational and psychological). Thirdly, the much higher probability of forgoing perinatal health care for Romanian women could be associated with financial or informational problems which seems counterintuitive because perinatal health care recommendations are free. Free coverage is too insufficient to ensure the efficiency of the perinatal health care system.
Journal: Applied Economics
Pages: 1298-1310
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1660301
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1660301
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Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1298-1310
Template-Type: ReDIF-Article 1.0
Author-Name: Bing Yan
Author-X-Name-First: Bing
Author-X-Name-Last: Yan
Author-Name: Bo Wen
Author-X-Name-First: Bo
Author-X-Name-Last: Wen
Title: Income inequality, corruption and subjective well-being
Abstract:
Based on the data of CGSS2013, we analyse the relationship between income inequality, corruption and subjective well being using an Ordered Probit model. Our results indicate that income inequality and corruption significantly reduces the subjective well-being of our country’s residents. Furthermore, corruption is an important channel for the negative effect of income inequality on subjective well-being, the impact of income inequality on subjective well-being is mainly achieved by the role of corruption. Specifically, the impacts vary according to hukou. Higher degree of income inequality indeed reduces the subjective well-being of urban residents, while it has a positive effect on subjective well-being of rural residents. Corruption has a significant negative impact on the subjective well-being of urban and rural residents. There is heterogeneity in the influence of different income levels in rural areas. The study in this paper shows that anti-corruption and narrowing the income gap are the two major grippers to improve the well-being of the residents.
Journal: Applied Economics
Pages: 1311-1326
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1661953
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1661953
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Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1311-1326
Template-Type: ReDIF-Article 1.0
Author-Name: Peijingran Yu
Author-X-Name-First: Peijingran
Author-X-Name-Last: Yu
Author-Name: Kenneth A. Couch
Author-X-Name-First: Kenneth A.
Author-X-Name-Last: Couch
Title: Work-limiting health, earnings, and employment: an analysis with SIPP data
Abstract:
This study examines the role of work-limiting health conditions on employed people’s earnings, employment status, and working hours, and distinguishes between the different degree and severity of predictable shocks. Using data from the 2004 Survey of Income and Program Participation (SIPP), we evaluate the impact of any work-limiting health condition as well as a subset of health conditions that appear to arrive largely exogenously on post-onset earnings, employment, and working hours. We find that people who report being employed and later experience the onset of any work-limiting health condition tend to have lower subsequent earnings, a reduced probability of being employed, and fewer working hours per month compared to those who remain healthy. The adverse impact is even greater for people with health conditions that arrive less predictably. We use a difference-in-differences regression model with person and year fixed effects as the primary estimation method.
Journal: Applied Economics
Pages: 1327-1348
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1661954
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1661954
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Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1327-1348
Template-Type: ReDIF-Article 1.0
Author-Name: Amit Prakash Jha
Author-X-Name-First: Amit Prakash
Author-X-Name-Last: Jha
Author-Name: Sanjay Kumar Singh
Author-X-Name-First: Sanjay Kumar
Author-X-Name-Last: Singh
Title: Does diversity matter? A fresh inquiry into the energy, economy and environment nexus
Abstract:
The article extends the literature on the nexus among economy, environment and energy by incorporating an index of electricity generation diversity in production and emission functions. The index is mathematically equivalent to Herfindahl–Hirschman index. The index captures substantial information regarding the ongoing energy transition at the global level. The results obtained through pooled mean group estimation, on a dataset of fairly diversified group of countries, indicate that if diversity index increases by a percentage point, per capita income increases by 2.4% and per capita emissions are reduced by 0.71%. This is against the conventional wisdom in favour of specialization. The study has found some interesting long-run causal pathways. Firstly, the causality runs from diversification to income. Secondly, there is a causality running from electricity consumption to specialization. Thirdly, bi-directional causality runs between emissions and specialization. The results have interesting policy implications. The study supports the growth hypothesis that the electricity consumption drives the economy. As this inevitably increases emissions, a better pathway is through diversification. The fossil fuel intensive pathway may have been the preferred choice in the past for countries with low electricity consumption; the diversified portfolio appears to be prudent in the future.
Journal: Applied Economics
Pages: 1349-1362
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1666205
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1666205
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Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1349-1362
Template-Type: ReDIF-Article 1.0
Author-Name: Wael Hemrit
Author-X-Name-First: Wael
Author-X-Name-Last: Hemrit
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Title: Asymmetric impacts of insurance premiums on the non-oil GDP: some new empirical evidence
Abstract:
In this paper, we study the influence of insurance premium on the non-oil gross domestic product in Saudi Arabia. We implement the nonlinear autoregressive distributed lags. The results show that the relationships between insurance premiums and non-oil gross domestic product manifest a nonlinear behaviour. In other words, insurance premiums via positive and negative shocks lead to an increase of growth in the non-oil sector in the long term, whereas the lagged level shocks negatively affect the non-oil GDP in the short run. In addition, the examination of the multiplier effect suggests that positive cumulative changes in insurance premiums and inflation can effect much larger changes in non-oil GDP, while shocks in government spending have a symmetric effect on non-oil GDP growth.
Journal: Applied Economics
Pages: 1363-1376
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1673300
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1673300
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Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1363-1376
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Jacobs
Author-X-Name-First: Jan
Author-X-Name-Last: Jacobs
Author-Name: Kazuo Ogawa
Author-X-Name-First: Kazuo
Author-X-Name-Last: Ogawa
Author-Name: Elmer Sterken
Author-X-Name-First: Elmer
Author-X-Name-Last: Sterken
Author-Name: Ichiro Tokutsu
Author-X-Name-First: Ichiro
Author-X-Name-Last: Tokutsu
Title: Public Debt, Economic Growth and the Real Interest Rate: A Panel VAR Approach to EU and OECD Countries
Abstract:
We investigate the causal relationship between public debt ratios and economic growth rates for 31 EU and OECD countries. We estimate a panel VAR model that incorporates the long-term real interest rate on government bonds as a vehicle to transmit shocks in both the public debt to GDP ratio and the economic growth rate. We find no causal link from public debt to growth, irrespective of the levels of the public debt ratio. Rather, we find a causal relationship from growth to public debt. In high-debt countries, the direct negative impact of growth on public debt is enhanced by an increase in the long-term real interest rate, which in its turn decreases interest-sensitive demand and leads to a further increase in the public debt ratio.
Journal: Applied Economics
Pages: 1377-1394
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1673301
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1673301
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Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1377-1394
Template-Type: ReDIF-Article 1.0
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: Does the Reserve Bank of Australia follow a forward-looking nonlinear monetary policy rule?
Abstract:
The conventional monetary policy rule describes a simple linear relationship between the domestic interest rate, inflation rate and output gap. An important extension to this rule is to incorporate the forward-looking behaviour of central banks, where it is assumed that they target an expected level of inflation instead of its current realised value. Using quarterly observations for the period 1993:1-2018:2, this paper investigates whether the conduct of monetary policy in Australia can be described by a forward-looking linear monetary policy rule, or by a nonlinear forward-looking monetary policy rule. In particular, the nonlinear forward-looking monetary policy rule is analysed in a regime-switching framework using a smooth logistic transition regression model. While the results show that the conventional forward-looking linear monetary policy rule describes the application of monetary policy in Australia reasonably well, the interest rate setting behaviour of the RBA is best described by a nonlinear forward-looking monetary policy rule.
Journal: Applied Economics
Pages: 1395-1408
Issue: 12
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1673302
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1673302
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Handle: RePEc:taf:applec:v:52:y:2020:i:12:p:1395-1408
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Brunori
Author-X-Name-First: Paolo
Author-X-Name-Last: Brunori
Author-Name: Flaviana Palmisano
Author-X-Name-First: Flaviana
Author-X-Name-Last: Palmisano
Author-Name: Vitorocco Peragine
Author-X-Name-First: Vitorocco
Author-X-Name-Last: Peragine
Title: Inequality of opportunity in sub-Saharan Africa
Abstract:
Inequality of opportunity is defined as the difference in individuals’ outcome systematically correlated with morally irrelevant pre-determined circumstances, such as ethnicity, socio-economic background, area of birth. This definition has been extensively studied by economists on the assumption that, in addition to being normatively undesirable, it can be related to low potentials for growth. However, empirical estimations of inequality of opportunity require accessing rich data sources, rarely available in poorer countries. In this paper, we exploit 13 consumption household surveys to evaluate inequality of opportunity in 10 Sub-Saharan African countries. According to our results, the portion of total inequality that can be attributed to exogenous circumstances is between 40% and 56% for the generality of countries. Our estimates are significantly higher than what has been found by previous studies. We detect a positive association between total consumption inequality and inequality of opportunity, and we study the different sources of unequal opportunities. The place of birth and the education of the father appear to exert the most relevant role in shaping inequality of opportunity in the region.
Journal: Applied Economics
Pages: 6428-6458
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619018
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619018
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Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6428-6458
Template-Type: ReDIF-Article 1.0
Author-Name: Tariro Makwasha
Author-X-Name-First: Tariro
Author-X-Name-Last: Makwasha
Author-Name: Jill Wright
Author-X-Name-First: Jill
Author-X-Name-Last: Wright
Author-Name: Param Silvapulle
Author-X-Name-First: Param
Author-X-Name-Last: Silvapulle
Title: Panel data analysis of multi-factor capital asset pricing models
Abstract:
In this article, we propose MFCAPM panel models with fixed effects and test theories associated with risk exposures and anomalies postulated by Fama and French, and we assess their out-of-sample predictive performances. Based on the portfolios formed by French, we construct 10 panel models, each consisting of 10 portfolios grouped by size deciles, and another 10 panels by value deciles. In the presence of cross-section dependence, the MFCAPM panel model is estimated by the feasible generalized least squares (FGLS) method for the sample period 1963(1)-2018(9). The results show that the market, firm-size and value risk exposures are significant and robust across three-, five- and six-factor panel models. Significant time-fixed effects indicate that there are several portfolios resilient to dot.com bubble peak in 2000, while some others resilient to GFC in 2007. We estimate the models for the in-sample period 1963(1)–1999(12) and generate the out-of-sample portfolio returns for the period 2000(1)–2018(9). We find that portfolio returns forecasts generated by the six-factor panel model are superior to other MFCAPM panel models, mostly due to the momentum factor (investor behaviour) explaining large return variations and volatility exposures. The findings have implications for investors, security traders and portfolio risk managers.
Journal: Applied Economics
Pages: 6459-6475
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1619019
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619019
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Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6459-6475
Template-Type: ReDIF-Article 1.0
Author-Name: Francois P. Kabore
Author-X-Name-First: Francois P.
Author-X-Name-Last: Kabore
Author-Name: Walter G. Park
Author-X-Name-First: Walter G.
Author-X-Name-Last: Park
Title: Can patent family size and composition signal patent value?
Abstract:
Recent research has proposed a method of patent valuation based on weighting patent family size by the market size of the countries in the family. The premise is that inventors tend to seek greater international coverage for their more valuable patents. The paper presents a novel way to test the ability of market size-weighted patent families to predict patent value and compares the method against extant measures of patent valuation based on patent citations and renewal behaviour. We use forecasting techniques to show that the weighted patent family size measure outperforms other methods in terms of predicting patent life and the number of citations. An advantage of the weighted patent family size measure is that it is based on ex-ante information and is easy to construct for purposes of evaluating patent value. We demonstrate this advantage using a large, comprehensive database of international patent families.
Journal: Applied Economics
Pages: 6476-6496
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1624914
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624914
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Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6476-6496
Template-Type: ReDIF-Article 1.0
Author-Name: Salma Ahmed
Author-X-Name-First: Salma
Author-X-Name-Last: Ahmed
Author-Name: Mark McGillivray
Author-X-Name-First: Mark
Author-X-Name-Last: McGillivray
Title: Higher education enrolment in Bangladesh: does the wage premium matter?
Abstract:
This paper empirically examines the decisions of individuals to enrol in a course of tertiary education in Bangladesh, focussing on the period 1999 to 2009. Of particular interest is whether the wage premium―the gap in wage earnings between tertiary and secondary school graduates―is associated with decisions to enrol in tertiary education. The analytical framework used here is the human capital theory, which is tested through a discrete choice model. Using data from Bangladesh Labour Force Surveys, empirical results suggest that the wage premium is positively associated with decisions of males to enrol in tertiary education, while for females there appears to be no such association. A battery of robustness tests supports our results.
Journal: Applied Economics
Pages: 6497-6516
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1624917
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624917
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Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6497-6516
Template-Type: ReDIF-Article 1.0
Author-Name: Luyuan Zheng
Author-X-Name-First: Luyuan
Author-X-Name-Last: Zheng
Author-Name: Yuexiang Jiang
Author-X-Name-First: Yuexiang
Author-X-Name-Last: Jiang
Author-Name: Huaigang Long
Author-X-Name-First: Huaigang
Author-X-Name-Last: Long
Title: Exchange rates change, asset-denominated currency difference and stock price fluctuation
Abstract:
This paper examines differences in the connectedness between exchange rates and stock prices for companies with different asset currencies on the Hong Kong stock market, and it seeks to explain those differences by proposing a hypothesis on asset-denominated currency difference. Under a framework of investor heterogeneity, we establish a dynamic, discrete theoretical model to analyse the connectedness between exchange rates, the stocks of local Hong Kong companies, the stocks of companies from the mainland and foreign exchange interventions. Using monthly data from January 2000 to August 2018, we adopt the time-varying parameter vector auto-regression (TVP-VAR) model to empirically study the dynamic relationships between exchange rates and the prices of both Hong Kong-based and mainland-based stocks. The results show significant differences in the ways that exchange rates and prices for the two types of stocks are linked. The exchange rates are positively correlated with mainland stocks and negatively correlated with Hong Kong stocks. Moreover, foreign exchange intervention is found to be an effective means for stabilising exchange rates, although such intervention tends to increase stock volatility.Abbreviations: TVP-VAR - time-varying parameter vector auto-regression model; MCMC - Monte Carlo-Markov Chain method.
Journal: Applied Economics
Pages: 6517-6534
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1624920
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624920
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Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6517-6534
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Sofer
Author-X-Name-First: Catherine
Author-X-Name-Last: Sofer
Author-Name: Claire Thibout
Author-X-Name-First: Claire
Author-X-Name-Last: Thibout
Title: Women’s investment in career and the household division of labour
Abstract:
This paper examines how partners in a couple share domestic work according to the woman’s investment in career. Investment is measured relatively to other women or to the partner. While previous studies mainly focused on the influence of wages and earnings, we extend them by considering more dimensions describing the intensity of the woman’s attachment to the labour market. We use the 2010 French Time Use survey to estimate a model of household division of labour in dual earner couples. We find that the more women are invested in career, the less domestic work they perform during weekdays, which is partly substituted by their partners but only on weekend days. The sharing of tasks is thus less unequal in those couples. However, women still spend more time than their partners on average performing domestic work, even when the woman outperforms him in career, implying no role reversal in the division of labour.
Journal: Applied Economics
Pages: 6535-6557
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1644440
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644440
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Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6535-6557
Template-Type: ReDIF-Article 1.0
Author-Name: Thierry Kirat
Author-X-Name-First: Thierry
Author-X-Name-Last: Kirat
Author-Name: Amir Rezaee
Author-X-Name-First: Amir
Author-X-Name-Last: Rezaee
Title: How stock markets react to regulatory sanctions? Evidence from France
Abstract:
Our study of how the stock market reacts to sanction announcements by the French financial regulator from 2004 to 2017 finds that the market reacts negatively when a sanction is announced in the press. Cross-sectional regression models show that the penalties are too low to influence market reactions. Our results suggest that after the financial crisis of 2008, a plethora of news on financial wrongdoings has desensitized markets to announcements of sanctions against large companies.
Journal: Applied Economics
Pages: 6558-6566
Issue: 60
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1644443
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644443
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Handle: RePEc:taf:applec:v:51:y:2019:i:60:p:6558-6566
Template-Type: ReDIF-Article 1.0
Author-Name: Bing Xu
Author-X-Name-First: Bing
Author-X-Name-Last: Xu
Author-Name: Adrian van Rixtel
Author-X-Name-First: Adrian
Author-X-Name-Last: van Rixtel
Author-Name: Michiel van Leuvensteijn
Author-X-Name-First: Michiel
Author-X-Name-Last: van Leuvensteijn
Title: Measuring bank competition under binding interest rate regulation: the case of China
Abstract:
Many empirical studies suggest that financial reform promoted bank competition in most mature and emerging economies. However, some earlier studies that adopted conventional approaches to measure competition have concluded that bank competition in China declined during the past decade, despite progressive reforms implemented since the 1980s. We show that this apparent contradiction is the result of flawed measurement. Conventional indicators such as the Lerner index and Panzar–Rosse H-statistic fail to measure competition in Chinese loan markets properly due to the system of interest rate regulation. By contrast, the profit elasticity (PE) approach does not suffer from these shortcomings. Using balance sheet information for a large sample of banks operating in China during 1996–2008, we show that competition actually increased in the past decade when the PE indicator is used.
Journal: Applied Economics
Pages: 4699-4718
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164818
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164818
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Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4699-4718
Template-Type: ReDIF-Article 1.0
Author-Name: Alejandro Arrieta
Author-X-Name-First: Alejandro
Author-X-Name-Last: Arrieta
Author-Name: Ariadna García Prado
Author-X-Name-First: Ariadna
Author-X-Name-Last: García Prado
Title: Non-elective C-sections in public hospitals: capacity constraints and doctor incentives
Abstract:
Using administrative records of births from the Perinatal Surveillance System of the Peruvian Social Security System (ESSALUD), we test whether high admissions of pregnant women affected non-elective caesarean section (C-section) rates in the ESSALUD public hospitals during 2005–2006. We present a basic theoretical model that considers physician preferences for leisure and hospital capacity constraints, and test the model predictions. We find that physician demand for leisure increases the probability of C-sections in small and medium-size hospitals, while hospital capacity constraints set a limit on them. We discuss the policy implications as well as the policies implemented to avoid unnecessary C-sections.
Journal: Applied Economics
Pages: 4719-4731
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164820
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164820
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Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4719-4731
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M. Blau
Author-X-Name-First: Benjamin M.
Author-X-Name-Last: Blau
Author-Name: Devon H. Gorry
Author-X-Name-First: Devon H.
Author-X-Name-Last: Gorry
Author-Name: Chip Wade
Author-X-Name-First: Chip
Author-X-Name-Last: Wade
Title: Guns, laws and public shootings in the United States
Abstract:
Since the late 1990s, there have been increasing numbers of public shootings carried out with firearms in the United States. These tragedies continually renew the regulatory debate concerning public safety while considering civil liberties. Using a unique data set, we investigate whether laws correspond to whether an event occurs and the effects of event-specific characteristics on public shooting outcomes. In particular, we analyse how state-specific gun laws, the types of firearms, the shooting venues and the mental health of the gunman impact the outcomes of public shootings. Results show that most gun laws are unrelated to whether an event occurs. In addition, common state and federal gun laws that outlaw assault weapons are unrelated to the likelihood of an assault weapon being used during a public shooting event. Moreover, results show that the use of assault weapons is not related to more victims or fatalities than other types of guns. However, the use of hand guns, shot guns and high-capacity magazines is directly related to the number of victims and fatalities in a public shooting event. Finally, the gunman’s reported mental illness is often associated with an increase in the number of victims and fatalities.
Journal: Applied Economics
Pages: 4732-4746
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164821
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164821
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Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4732-4746
Template-Type: ReDIF-Article 1.0
Author-Name: Wonho Wilson Choi
Author-X-Name-First: Wonho Wilson
Author-X-Name-Last: Choi
Author-Name: Jinyong Kim
Author-X-Name-First: Jinyong
Author-X-Name-Last: Kim
Author-Name: Mingook Kim
Author-X-Name-First: Mingook
Author-X-Name-Last: Kim
Title: Derivatives holdings and market values of U.S. bank holding companies
Abstract:
We examine the impact of derivatives held by US bank holding companies on their market valuations over the period 2000 to 2010. By using bank-level data with detailed information on the notional amounts of derivative positions according to holding purposes and underlying asset types, our regression analyses provide three main findings. First, derivative instruments held for hedging rather than trading purposes contribute to enhancing market values. Second, the positive effects exhibit nonmonotonic patterns indicating that excessive amounts of derivatives holdings deteriorate market values. Third, interest rate derivatives are the main source of high valuations.
Journal: Applied Economics
Pages: 4747-4757
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164822
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164822
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Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4747-4757
Template-Type: ReDIF-Article 1.0
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: Asymmetric monetary policy rules in Australia
Abstract:
In this study, the hypothesis that the Reserve Bank of Australia (RBA) implements an asymmetric monetary policy rule is tested. We estimate both linear and asymmetric monetary policy reaction functions for the period before inflation targeting was adopted, for the period when inflation targeting was explicitly adopted and for the full sample period. The results of the linear monetary policy rules are consistent with the estimates reported from other studies that estimate linear monetary policy rules for Australia. On the other hand, the results of estimating the asymmetric monetary policy rules for the pre-inflation targeting period shows that the RBA had reacted symmetrically, suggesting that it had acted with the same aggressiveness towards both inflation and output gaps of the same magnitude, over both phases of the business cycle. However, for the inflation targeting period, the results show that the RBA had reacted asymmetrically in its policy response to the inflation gap, output gap or both. A similar result is found for the full sample period. This asymmetric response supports the view that a non-linear monetary policy rule emanated from asymmetric preferences, rather than from the existence of a non-linear Phillips curve.
Journal: Applied Economics
Pages: 4758-4772
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164823
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164823
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Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4758-4772
Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary
Author-X-Name-First: M. Ali
Author-X-Name-Last: Choudhary
Author-Name: Sajawal Khan
Author-X-Name-First: Sajawal
Author-X-Name-Last: Khan
Author-Name: Farooq Pasha
Author-X-Name-First: Farooq
Author-X-Name-Last: Pasha
Author-Name: Muhammad Rehman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Rehman
Title: The dominant borrower syndrome
Abstract:
The financing channel of a fiscal stimulus matters for the size and the sign of the fiscal multiplier. We develop a general equilibrium model where a fiscal stimulus is partially bank-funded and the government becomes the dominant borrower from banks relative to entrepreneurs. This leads to a negative impact on credit spreads, investment and a contraction in output. We support our story with a structural vector autoregression for a sample of developing countries featuring the dominant borrower syndrome.
Journal: Applied Economics
Pages: 4773-4782
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164824
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164824
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Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4773-4782
Template-Type: ReDIF-Article 1.0
Author-Name: Tilak Abeysinghe
Author-X-Name-First: Tilak
Author-X-Name-Last: Abeysinghe
Author-Name: Jiaying Gu
Author-X-Name-First: Jiaying
Author-X-Name-Last: Gu
Title: Estimating fundamental and affordable housing price trends: a study based on Singapore
Abstract:
Policy-makers often impose some cooling measures on the housing market when housing prices rise fast. Such policies yield limited success if housing prices are driven up by fundamentals. Estimating a fundamental price trend from observed price data is a challenge. We present an empirical methodology to separate housing price trends into fundamental and affordable components. Deviating from the common practice, we replace current income by a long-run income measure constructed from household incomes at different quantiles. This income measure provides a more suitable basis for constructing affordable house price levels. It also serves as a better fundamental variable, especially for segmented housing markets like that of Singapore. These price trends provide policy-makers with useful information to intervene into property markets to achieve desirable outcomes. Analysing Singapore data using this methodology shows the magnitudes of the price gaps between actual and fundamental prices and how housing affordability fluctuates over price cycles.
Journal: Applied Economics
Pages: 4783-4798
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164825
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164825
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Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:4783-4798
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 49
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1178976
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178976
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Handle: RePEc:taf:applec:v:48:y:2016:i:49:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: Omar Belkhodja
Author-X-Name-First: Omar
Author-X-Name-Last: Belkhodja
Author-Name: Muhammad Mohiuddin
Author-X-Name-First: Muhammad
Author-X-Name-Last: Mohiuddin
Author-Name: Egide Karuranga
Author-X-Name-First: Egide
Author-X-Name-Last: Karuranga
Title: The determinants of FDI location choice in China: a discrete-choice analysis
Abstract:
This study addresses two questions: What are the determinants of foreign direct investment (FDI) location choice in China? What are the factors that determine investors’ choice between ‘Economic zones’ in China on one hand, and ‘other cities’ of China on the other hand? This study shows that FDI location choice is sensitive both on the endowment conditions in different regions/cities/economic zones in China as well as on the country of origin of the FDI. Based on a data set of 1218 observations, the results of the binary logit regressions indicate that the protection of intellectual rights, agglomeration economies, investments in education and gross regional product affect the location choice of FDI in China. This choices, however, varies depending on the origin of the FDI. Policy makers can use these findings to channel FDI to targeted regions/ cities.
Journal: Applied Economics
Pages: 1241-1254
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1153786
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153786
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Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1241-1254
Template-Type: ReDIF-Article 1.0
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Title: Impact of macroeconomic factors and country risk ratings on GCC stock markets: evidence from a dynamic panel threshold model with regime switching
Abstract:
This study examines the non-linear relationship between stock markets in GCC countries and their country risk ratings as well as with major macroeconomic factors. Based on a dynamic panel threshold model with two and four regimes, the results provide evidence of short-term asymmetry between first-lagged GCC stock returns and the performance of GCC stock markets. In addition, only the financial risk (FR) rating has a significant positive effect on the performance of GCC stock markets according to the prevailing regimes for the GCC lagged returns and the Brent oil market. Among the macroeconomic factors, improvements in the global stock markets, the MSCI Global Islamic Index, and the oil price increased the performance of GCC stock markets, whereas increases in the gold price, the 3-month U.S. Treasury bill rate, and the U.S. Treasury bond rate reduced the performance of the GCC stock markets. These results have important implications for investors, policymakers, and portfolio managers.
Journal: Applied Economics
Pages: 1255-1272
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217305
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217305
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Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1255-1272
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Khalid Ahmed
Author-X-Name-First: Khalid
Author-X-Name-Last: Ahmed
Title: CO emissions in Australia: economic and non-economic drivers in the long-run
Abstract:
Australia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries. Per capita CO2 emissions tend to be highest amongst OECD countries, creating new challenges to cut back emissions towards international standards. This research explores the long-run dynamics of CO2 emissions, economic and population growth along with the effects of globalization tested as contributing factors. We find economic growth is not emission-intensive in Australia, while energy consumption is emissions intensive. Second, in an environment of increasing population, our findings suggest Australia needs to be energy efficient at the household level, creating appropriate infrastructure for sustainable population growth. High population growth and open migration policy can be detrimental in reducing CO2 emissions. Finally, we establish globalized environment has been conducive in combating emissions. In this respect, we establish the beneficial effect of economic globalization compared to social and political dimensions of globalization in curbing emissions.
Journal: Applied Economics
Pages: 1273-1286
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217306
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217306
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Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1273-1286
Template-Type: ReDIF-Article 1.0
Author-Name: E. De La Poza
Author-X-Name-First: E.
Author-X-Name-Last: De La Poza
Author-Name: L. Jódar
Author-X-Name-First: L.
Author-X-Name-Last: Jódar
Author-Name: A. Pricop
Author-X-Name-First: A.
Author-X-Name-Last: Pricop
Title: Modelling and analysing voting behaviour: the case of the Spanish general elections
Abstract:
The permanent high-level public and private debt, high unsustainable youth unemployment rates, combined with the constant disclosure of establishment parties’ corruption scandals, are features of the present Spanish scenario. Lack of confidence in the government’s labour is driving a large proportion of the electoral register to support new emergent political parties. This article models and analyses Spanish citizens’ electoral behaviour in what were the last Spanish General Elections (2015). The proposed compartmental model is based on a system of six different equations. Transition coefficients are quantified according to economic, demographic, psychological and sociological factors. After obtaining the initial data from previous general elections and by sampling new voters’ intentions, the expected electoral support was computed and analysed. Our results predict the end of the two-party system in Spain and a change to a main four-party system.
Journal: Applied Economics
Pages: 1287-1297
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217307
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217307
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Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1287-1297
Template-Type: ReDIF-Article 1.0
Author-Name: Charlene M. Kalenkoski
Author-X-Name-First: Charlene M.
Author-X-Name-Last: Kalenkoski
Author-Name: Eakamon Oumtrakool
Author-X-Name-First: Eakamon
Author-X-Name-Last: Oumtrakool
Title: The caregiving responsibilities of retirees: what are they and how do they affect retirees’ well-being?
Abstract:
Using data from the 2010 and 2012 American Time Use Surveys (ATUS) and the associated Well-being Modules (WBM), this article examines how caregiving affects the well-being of retirees who are caregivers. Different caregiving activities are examined, including caring for household adults, caring for non-household adults, and caring for children. Different aspects of well-being are examined, including how meaningful respondents find their activities and how happy, sad, tired, in pain, and stressed their activities make them. The results show that, controlling for selection into caregiving, most caregiving negatively affects the well-being of retirees. This suggests that policies that remove some of the caregiving burden from retirees would increase their well-being.
Journal: Applied Economics
Pages: 1298-1310
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217308
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217308
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Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1298-1310
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Knabe
Author-X-Name-First: Andreas
Author-X-Name-Last: Knabe
Author-Name: Ronnie Schöb
Author-X-Name-First: Ronnie
Author-X-Name-Last: Schöb
Author-Name: Joachim Weimann
Author-X-Name-First: Joachim
Author-X-Name-Last: Weimann
Title: The subjective well-being of workfare participants: insights from a day reconstruction survey
Abstract:
In this article, we shed more light on the subjective well-being of workfare participants and compare it to the well-being of unemployed and employed workers. We use data from a self-conducted survey among participants in workfare schemes in Germany. We examine two subdimensions of subjective well-being – life satisfaction and emotional well-being – separately to obtain a more comprehensive view of the subjective well-being of workfare participants. Our results show that the life satisfaction of people in this group is between that of employed and unemployed people. In contrast, their emotional well-being is the highest of these three groups.
Journal: Applied Economics
Pages: 1311-1325
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217309
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217309
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Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1311-1325
Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: Short-term forecasting with mixed-frequency data: a MIDASSO approach
Abstract:
In this article, we extend the targeted-regressor approach suggested in Bai and Ng (2008) for variables sampled at the same frequency to mixed-frequency data. Our MIDASSO approach is a combination of the unrestricted MIxed-frequency DAta-Sampling approach (U-MIDAS) (see Foroni et al. 2015; Castle et al. 2009; Bec and Mogliani 2013), and the LASSO-type penalized regression used in Bai and Ng (2008), called the elastic net (Zou and Hastie 2005). We illustrate our approach by forecasting the quarterly real GDP growth rate in Switzerland.
Journal: Applied Economics
Pages: 1326-1343
Issue: 13
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217310
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217310
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Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1326-1343
Template-Type: ReDIF-Article 1.0
Author-Name: M.-A. Véganzonès-Varoudakis
Author-X-Name-First: M.-A.
Author-X-Name-Last: Véganzonès-Varoudakis
Author-Name: P. Plane
Author-X-Name-First: P.
Author-X-Name-Last: Plane
Title: Innovation, exports, productivity and investment climate; a study based on Indian manufacturing firm-level data
Abstract:
In this paper, we use univariate instrumental estimations to study the interactions between firm-level innovation, exports and productivity in the Indian manufacturing sector. To differentiate incentives to innovate from the ability to innovate, we distinguish the inputs of innovation (R&D and training) from the outputs. Our findings highlight a virtuous circle between the three components of innovation, as well as between firms’ R&D, innovation and exports. The productivity of Indian manufacturing firms is benefiting from this dynamics, as exports and innovation improve firms’ TFP. With respect to the investment climate, our results suggest that differences in the environment of Indian companies contribute to their performance gaps. These results are all the more important in the context of the Make in India campaign and the weaknesses of India’s business environment.
Journal: Applied Economics
Pages: 4455-4476
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1591606
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591606
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Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4455-4476
Template-Type: ReDIF-Article 1.0
Author-Name: Vasilios Plakandaras
Author-X-Name-First: Vasilios
Author-X-Name-Last: Plakandaras
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Persistence of economic uncertainty: a comprehensive analysis
Abstract:
One of the most heavily researched and cited issue in applied economics is the relationship of uncertainty indices with the financial and macroeconomic variables. While the statistical features of financial and macroeconomic variables have been thoroughly examined, virtually nothing has been done to examine uncertainty indices under the statistical perspective. In this paper, we focus on two primary characteristics of uncertainty indices: persistence and chaotic behaviour. In order to evaluate the persistence and the chaotic behaviour we analyse 72 popular uncertainty indices constructed by forecasting models, text mining from news articles and data mining from monetary variables to measure the Hurst and Lyapunov exponents in rolling windows. The examination in rolling windows provides a dynamic evaluation of the specific characteristics revealing significant variations of persistence and chaotic dynamics with time. More specifically, we find that almost all uncertainty indices are persistent, while the chaotic dynamics are detected only sporadically and for certain indices during recessions of economic turbulence. Thus, we suggest that the examination of persistence and chaos should be a prerequisite step before using uncertainty indices in economic policy models.
Journal: Applied Economics
Pages: 4477-4498
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1591607
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591607
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Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4477-4498
Template-Type: ReDIF-Article 1.0
Author-Name: Ken Miyajima
Author-X-Name-First: Ken
Author-X-Name-Last: Miyajima
Author-Name: James Yetman
Author-X-Name-First: James
Author-X-Name-Last: Yetman
Title: Assessing inflation expectations anchoring for heterogeneous agents: analysts, businesses and trade unions
Abstract:
Forecasts of agents who are actively involved in the setting of prices and wages are less readily available than those of professional analysts but may be more relevant for understanding inflation dynamics. Here we compare inflation expectations anchoring between analysts, businesses and trade unions for one country for which comparable forecasts are available for almost two decades: South Africa. Forecasts are modelled as monotonically diverging from an estimated long-run anchor point, or ‘implicit anchor’, towards actual inflation as the forecast horizon shortens. We find that the estimated inflation anchors of analysts lie within the 3–6 percent inflation target range of the central bank. However, those for businesses and trade unions, which our evidence suggests may be the most relevant for driving the inflation process, have remained above the top end of the official target range. Our results point to challenges for central banks seeking to gain credibility with agents whose decisions directly influence inflation.
Journal: Applied Economics
Pages: 4499-4515
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593317
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593317
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Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4499-4515
Template-Type: ReDIF-Article 1.0
Author-Name: Kris Ivanovski
Author-X-Name-First: Kris
Author-X-Name-Last: Ivanovski
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Title: Economic policy uncertainty and demand for money in Australia
Abstract:
The demand for money has received a great deal of attention in the empirical literature. This literature, however, has emphasized factors such as interest rate, income, inflation rate and exchange rate as the primary determinants of money demand. Although an emerging strand of literature examines uncertainty as a potential determinant of money demand, findings have been mixed. Using a news-based Economic Policy Uncertainty (EPU) index and Australian quarterly data from 1998 to 2017, we study the impact of policy uncertainty on demand for money. Autoregressive distributed lag (ARDL) results show that the economic policy uncertainty measure has a negative short-run effect on the demand for money, suggesting the wider public hedge against future expected inflation, and positive long-run effect, whereby the broader public hold more cash to stay liquid during times of economic uncertainty. Also, introducing nonlinearity into the money demand equation, we find an asymmetric effect, more in favour of currency appreciations, supporting the expectations effect of further appreciations in exchange rate movements.
Journal: Applied Economics
Pages: 4516-4526
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593936
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593936
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Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4516-4526
Template-Type: ReDIF-Article 1.0
Author-Name: Mário J. A. Fortuna
Author-X-Name-First: Mário J. A.
Author-X-Name-Last: Fortuna
Author-Name: Francisco J. F. Silva
Author-X-Name-First: Francisco J. F.
Author-X-Name-Last: Silva
Author-Name: João C. A. Teixeira
Author-X-Name-First: João C. A.
Author-X-Name-Last: Teixeira
Title: International transatlantic trade liberalization: zooming in on regional impacts
Abstract:
The current study analyses the impact on a Portuguese small island regional economy of the Transatlantic Trade and Investment Partnership (T-TIP) between the EU and the USA. A dynamic Computational General Equilibrium (CGE) model detailing six household categories, 45 sectors, and four trading partners is used. Previous studies used aggregate variables and, largely, were based on the structure of the national economy. For a small, integrated economy, foreign trade statistics comprise an underestimation, given that most of the trade occurs through national logistics centres. Taking into account the national integration effects, gross domestic value was estimated to be higher than in other studies. Using equivalent variation, the estimated welfare impact is positive for all six household categories. Value-added suffers mixed impacts depending on the sector. It is negative for fisheries, ambiguous for agriculture and positive for tourism and transportation. The contribution of the current study is to highlight the importance of looking beneath the trade block and national conclusions particularly when regional economic policy is relevant as is the case in Europe. Better knowledge of welfare, regional and sector impacts allows for improved development and mitigation policies.
Journal: Applied Economics
Pages: 4527-4538
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593937
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593937
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Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4527-4538
Template-Type: ReDIF-Article 1.0
Author-Name: M. Angerer
Author-X-Name-First: M.
Author-X-Name-Last: Angerer
Author-Name: M. Dünser
Author-X-Name-First: M.
Author-X-Name-Last: Dünser
Author-Name: L. Kaiser
Author-X-Name-First: L.
Author-X-Name-Last: Kaiser
Author-Name: G. Peter
Author-X-Name-First: G.
Author-X-Name-Last: Peter
Author-Name: S. Stöckl
Author-X-Name-First: S.
Author-X-Name-Last: Stöckl
Author-Name: A. Veress
Author-X-Name-First: A.
Author-X-Name-Last: Veress
Title: What drives our Beer Consumption?---In Search of Nutrition Habits and Demographic Patterns
Abstract:
Conventional wisdom in Germany claims pork hocks with sauerkraut and beer. But is it really that simple? In an unbalanced cross-country panel covering 169 nations and time-series records of up to 52 years, we analyse drivers behind beer consumption. Based on data gathered from Worldbank and Faostat, we run multivariate panel regressions and test for the explanatory power of three categories of food and six macroeconomic and demographic variables. Indeed, we confirm most clichés of a typical beer drinker being a middle-aged urbanite with a strong desire for pork and potatoes, however, disliking cheese and wine.
Journal: Applied Economics
Pages: 4539-4550
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593938
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593938
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Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4539-4550
Template-Type: ReDIF-Article 1.0
Author-Name: Daisuke Nishijima
Author-X-Name-First: Daisuke
Author-X-Name-Last: Nishijima
Author-Name: Shigemi Kagawa
Author-X-Name-First: Shigemi
Author-X-Name-Last: Kagawa
Author-Name: Keisuke Nansai
Author-X-Name-First: Keisuke
Author-X-Name-Last: Nansai
Author-Name: Masahiro Oguchi
Author-X-Name-First: Masahiro
Author-X-Name-Last: Oguchi
Title: Economic consequences of the Home Appliance Eco-Point Program in Japan: a dynamic discrete choice approach
Abstract:
This study combined a dynamic discrete choice model for air conditioner replacement decisions with an inter-industry model in order to evaluate the economic impact of Japan’s Home Appliance Eco-Point Program, an appliance replacement program that was in effect from May 2009 to March 2011. Focusing on air conditioners produced from 1995 to 1999 and replaced during the period from 2005 to 2013, we found that the eco-point program increased replacement probabilities by 1.5% to 1.9% in 2009. Moreover, the program produced an additional output of 31,337 million yen and a total value added of 21,259 million yen. However, the benefit–cost ratio – determined by dividing the increase in value added by the monetary value of the points awarded for appliance replacement – was only 0.68. From a cost-benefit perspective, the program can be judged not to have been an effective policy measure.
Journal: Applied Economics
Pages: 4551-4563
Issue: 41
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1593939
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593939
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Handle: RePEc:taf:applec:v:51:y:2019:i:41:p:4551-4563
Template-Type: ReDIF-Article 1.0
Author-Name: Artur Silva Lopes
Author-X-Name-First: Artur Silva
Author-X-Name-Last: Lopes
Author-Name: Gabriel Florin Zsurkis
Author-X-Name-First: Gabriel Florin
Author-X-Name-Last: Zsurkis
Title: Are linear models really unuseful to describe business cycle data?
Abstract:
We use first differenced logged quarterly series for the GDP of 29 countries and the euro area to assess the need to use non-linear models to describe business cycle dynamic behaviour. Our approach is model (estimation)-free, based on testing only. We aim to maximize power to detect non-linearities while, simultaneously, avoiding the pitfalls of data mining. The evidence we find does not support some descriptions because the presence of significant non-linearities is observed for two-thirds of the countries only. Linear models cannot be simply dismissed as they are frequently useful. Contrarily to common knowledge, non-linear business cycle variation does not seem to be a universal, undisputable and clearly dominant stylized fact. This finding is particularly surprising for the U.S. case. Some support for non-linear dynamics for some further countries is obtained indirectly, through unit root tests, but this can hardly be invoked to support non-linearity in classical business cycles.
Journal: Applied Economics
Pages: 2355-2376
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1495825
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495825
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Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2355-2376
Template-Type: ReDIF-Article 1.0
Author-Name: Yuepeng Zhou
Author-X-Name-First: Yuepeng
Author-X-Name-Last: Zhou
Author-Name: Xiaoping Shi
Author-X-Name-First: Xiaoping
Author-X-Name-Last: Shi
Author-Name: Nico Heerink
Author-X-Name-First: Nico
Author-X-Name-Last: Heerink
Author-Name: Xianlei Ma
Author-X-Name-First: Xianlei
Author-X-Name-Last: Ma
Title: The effect of land tenure governance on technical efficiency: evidence from three provinces in eastern China
Abstract:
This study aims to identify the mechanisms through which land tenure governance affects the technical efficiency of grain production in an integrated framework and to examine the impacts of the public governance, village self-governance, and relational governance of land tenure on the technical efficiency of contracted land and rented-in land. Farm-level survey data collected from Liaoning, Jiangxi, and Jiangsu provinces covering the years of 2014 and 2015 is used for the empirical analysis. The findings indicate that (i) public governance associated with land certification significantly increases the technical efficiency of grain production; (ii) village self-governance and administrative land reallocations can serve as substitutes for the land rental market in optimizing the distribution of land resources and improving technical efficiency; and (iii) compared to multi-year transfer contracts, both annual and open-ended transfer contracts have negative impacts on technical efficiency.
Journal: Applied Economics
Pages: 2337-2354
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1543941
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1543941
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Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2337-2354
Template-Type: ReDIF-Article 1.0
Author-Name: John W. Duffield
Author-X-Name-First: John W.
Author-X-Name-Last: Duffield
Author-Name: Christopher J. Neher
Author-X-Name-First: Christopher J.
Author-X-Name-Last: Neher
Author-Name: David A. Patterson
Author-X-Name-First: David A.
Author-X-Name-Last: Patterson
Title: Natural resource valuation with a tribal perspective: a case study of the Penobscot Nation
Abstract:
The unique settings of tribal lands and preferences of tribal members can complicate the effective application of standard natural resource use valuation tools within these tribal settings. We present a study which utilised referendum format contingent valuation methods to value foregone tribal use of the dioxin-contaminated Penobscot River in Maine. The Penobscot Nation’s prior experience in using referendums to evaluate cash settlement offers provides a unique setting for this application. The valuation responses pass a scope test and are consistent with a priori expectations of economic theory as well as individual attitudes and beliefs. Implicit discount rates based on the valuation of two clean-up periods are plausible. The response model indicates that cultural motives are a significant basis of foregone use values. While each tribal setting presents unique characteristics and challenges, the presented application demonstrates how carefully applied standard valuation tools, when appropriately designed to account for and incorporate tribal history, settings, and perspective, can yield defensible estimates of resource valuation.
Journal: Applied Economics
Pages: 2377-2389
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1543942
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1543942
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Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2377-2389
Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandr V. Gevorkyan
Author-X-Name-First: Aleksandr V.
Author-X-Name-Last: Gevorkyan
Title: Exchange market pressure and primary commodity – exporting emerging markets
Abstract:
This paper studies short-term sensitivity between exchange market pressure and various domestic and external factors in primary commodity-exporting emerging markets. The paper focuses on the top country-commodity groups in sugar, cereal, fuels, ores and coffee during the pre-peak and post-peak commodity price periods across floating and pegged exchange rate regimes, using the price of crude oil as a general benchmark. Employing a panel model and panel VAR analysis, the paper finds the heterogeneity of response patterns unique to country-commodity groups and exchange rate regimes. According to the results, in flexible regimes, volatility occurs via the foreign exchange market, interest rates, and domestic credit cycles, feeding into the social costs for structurally weaker economies. Hard exchange-rate pegs often result in a drain on international reserves as the terms of trade deteriorate following post-price peaks, leading to unpopular depreciation. These results accentuate concerns over uneven international trade patterns, an open economy’s short-term foreign exchange policy, and speculative capital flows. Such sensitivity has broad implications for macroeconomic balance and the sustainability of implied exchange rate targets in the presence of a foreign exchange constraint across emerging markets.
Journal: Applied Economics
Pages: 2390-2412
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545077
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545077
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Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2390-2412
Template-Type: ReDIF-Article 1.0
Author-Name: Z M Dai
Author-X-Name-First: Z M
Author-X-Name-Last: Dai
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Title: Research on equity adjustment, agency costs and commercial bank performance: experimental evidence from China
Abstract:
This article studies the impact of options to adjust the performance of commercial banks from agency costs. In the shareholding structure of the adjustment process, considering changes in agency costs, only in agency costs no more than the commercial banks when new results, the company will have to adjust agent the cost of power stealth measure more just by reflecting the size of the incremental results. In addition, equity restructuring costs are the basis of agency governance and ownership structure has an important impact on agency costs. Through a few selected China 14 listed commercial banks’ 2007–2012 data, we show that the impact of performance of commercial banks on the proportion of the company’s largest shareholders is generally more significant; however, the impact of equity restriction on commercial banks was not as significant, as seen from the application of balanced panel data model analysis and the test results. However, the agency costs of commercial bank performance were significant also in a general state, indicating that equity adjustment activities of commercial banks’ cost perspective agency under the commercial bank performance significant changes are not large.
Journal: Applied Economics
Pages: 2413-2421
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545078
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545078
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Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2413-2421
Template-Type: ReDIF-Article 1.0
Author-Name: Mathieu Bunel
Author-X-Name-First: Mathieu
Author-X-Name-Last: Bunel
Author-Name: Elisabeth Tovar
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Tovar
Title: Does accessibility to local public employment agencies matter? Answers from a French quasi-experiment
Abstract:
We question whether accessibility to local public employment agencies impacts exits from unemployment. We deal with the potential endogeneity of the residential location of jobseekers by using the unanticipated creation of a new agency in the French region of Lyon as a quasi-natural experiment. We use exhaustive and geo-located individual data on jobseekers and local public employment agencies. Contrary to past evidence based on aggregated data, we find no evidence that jobseekers with improved accessibility to the local public employment services experience an improvement of their probability of exiting unemployment. We however find evidence of transitory organizational effects. These findings strongly question the costly strategy of a fine distribution of local public employment agencies across the territory while suggesting that institutional issues are key.
Journal: Applied Economics
Pages: 2422-2435
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545079
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545079
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Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2422-2435
Template-Type: ReDIF-Article 1.0
Author-Name: Zhe Huang
Author-X-Name-First: Zhe
Author-X-Name-Last: Huang
Author-Name: Franck Martin
Author-X-Name-First: Franck
Author-X-Name-Last: Martin
Title: Pairs trading strategies in a cointegration framework: back-tested on CFD and optimized by profit factor
Abstract:
Statistical arbitrage is based on pairs trading of mean-reverting returns. We used cointegration approach and ECM-DCC-GARCH to construct 98 pairs of 152 stocks of 3 currencies. Stocks trading is done by Contract for Difference (CFD), a financial derivative product which facilitates short selling and provides a leverage up to 25 times. To measure the performance of a leveraged strategy, we introduced the profit factor which is the annualized return rate per unit risk. And the historical risk is measured by maximum drawdown. We compared three main strategies: percentage, standard deviation of cointegration long-term residuals and Bollinger Bands (dynamic standard deviation), with and without double confirmation of short-term standard deviation modelled by ECM-DCC-GARCH. Each of the three main strategies is optimized by two optimizers: absolute profit and profit factor. The optimization period goes from 2012–01-01 to 2014–12-31, and validation period is from 2015–01-01 to 2016–06-01. Our results showed that the USD Bollinger Bands strategy without double confirmation and optimized by profit factor, outperformed other strategies and provided the highest annualized return rate per unit risk; 32% of our sample pairs ended up in loss, and 94% of which are explained by a cointegration break during the testing period.
Journal: Applied Economics
Pages: 2436-2452
Issue: 22
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545080
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545080
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Handle: RePEc:taf:applec:v:51:y:2019:i:22:p:2436-2452
Template-Type: ReDIF-Article 1.0
Author-Name: Qin Xiao
Author-X-Name-First: Qin
Author-X-Name-Last: Xiao
Author-Name: Steven Devaney
Author-X-Name-First: Steven
Author-X-Name-Last: Devaney
Title: Are mortgage lenders guilty of the housing bubble? A UK perspective
Abstract:
Existing theoretical models of house prices and credit rely on continuous rationality of consumers, an assumption that has been frequently questioned in recent years. Meanwhile, empirical investigations of the relationship between prices and credit are often based on national-level data, which is then tested for structural breaks and asymmetric responses, usually with subsamples. Earlier author argues that local markets are structurally different from one another and so the coefficients of any estimated housing market model should vary from region to region. We investigate differences in the price–credit relationship for 12 regions of the UK. Markov-switching is introduced to capture asymmetric market behaviours and turning points. Results show that credit abundance had a large impact on house prices in Greater London and nearby regions alongside a strong positive feedback effect from past house price movements. This impact is even larger in Greater London and the South East of England when house prices are falling, which are the only instances where the credit effect is more prominent than the positive feedback effect. A strong positive feedback effect from past lending activity is also present in the loan dynamics. Furthermore, bubble probabilities extracted using a discrete Kalman filter neatly capture market turning points.
Journal: Applied Economics
Pages: 4271-4290
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156231
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156231
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Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4271-4290
Template-Type: ReDIF-Article 1.0
Author-Name: H. Malloch
Author-X-Name-First: H.
Author-X-Name-Last: Malloch
Author-Name: R. Philip
Author-X-Name-First: R.
Author-X-Name-Last: Philip
Author-Name: S. Satchell
Author-X-Name-First: S.
Author-X-Name-Last: Satchell
Title: Decomposing the bias in time-series estimates of CAPM betas
Abstract:
We identify two sources of bias arising from time-series regression used to compute beta. This bias arises due to the classical error in variables problem and a ‘mechanical interaction’ which exists when the index comprises the asset of interest. Assuming that the market is proxied by a fixed-weight index, we demonstrate that the relative weighting of an asset within the index, and/or the magnitude of its idiosyncratic risk, directly biases the beta estimate for the individual stock and also for all stocks within the index. Via simulations, we show that the problem is most pronounced for markets with a small number of highly concentrated assets. Finally, we propose a procedure to reduce this bias and apply the methods to equity data.
Journal: Applied Economics
Pages: 4291-4298
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156233
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156233
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Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4291-4298
Template-Type: ReDIF-Article 1.0
Author-Name: Giuliano Bianchi
Author-X-Name-First: Giuliano
Author-X-Name-Last: Bianchi
Title: The effect of price targets on the composition of CEO pay
Abstract:
This article analyzes the impact of price targets from the IBES Detail Price History Target database on CEO compensation retained from Execucomp. The two databases are merged at fiscal year frequency and an OLS regression with fixed effect is used to analyze the impact of price target on CEO compensation. The analysis reveals that analysts’ price targets affect top executives’ compensation: when analysts predict a growth in the share price for a company, the compensation package tilts towards stock options, when analysts forecast a drop in the share price, the compensation package tilts towards cash-based compensation and restricted stocks. I argue that the result is more aligned with the managerial power model of compensation (which assumes the board of directors maximizes managers’ compensation) than with the arm’s length bargaining model (that states that managers’ compensation is set to maximize shareholders’ profit).
Journal: Applied Economics
Pages: 4299-4311
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156234
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156234
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Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4299-4311
Template-Type: ReDIF-Article 1.0
Author-Name: Ren Zhang
Author-X-Name-First: Ren
Author-X-Name-Last: Zhang
Author-Name: Arnold Polanski
Author-X-Name-First: Arnold
Author-X-Name-Last: Polanski
Title: Volatility–volume co-movements: evidence from China metal markets
Abstract:
This article investigates the interactional relationship between price volatility and futures trading activity for three heavily traded metal products on the Shanghai Metal Exchange and the Shanghai Futures Exchange. Using models based on vector autoregression and generalized method of moments, we show, in particular, that futures trading activity has a strong impact on both spot and futures price volatility in copper and aluminium markets. Futures trading activity leads spot market volatility in copper and aluminium markets which suggests that futures markets have a destabilizing effect. In order to disentangle the effect of different traders’ types on asset price movements, we decompose futures trading into speculators’ and hedgers’ trading and investigate their contributions to volatility. As a robustness check, we investigate the impact of endogenous structural breaks on the interactional relationship between price volatility and futures trading.
Journal: Applied Economics
Pages: 4312-4336
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156235
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156235
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Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4312-4336
Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Title: International aid from the recipient perspective: public or private good input assistance?
Abstract:
This article proposes a theoretical model from the recipient perspective that considers what type of assistance a donor country should provide: public good assistance or private good assistance. We investigate the effects of migration and free riders under both types of assistance. We empirically apply this model to the rapidly growing economies and a large official development assistance disbursement for East Asia.
Journal: Applied Economics
Pages: 4337-4349
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156236
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156236
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Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4337-4349
Template-Type: ReDIF-Article 1.0
Author-Name: Tarcisio da Graça
Author-X-Name-First: Tarcisio
Author-X-Name-Last: da Graça
Author-Name: Robert Masson
Author-X-Name-First: Robert
Author-X-Name-Last: Masson
Title: A structural event study for M&As: an application in corporate governance
Abstract:
We apply structural event study methodology in the context of corporate governance to account for the interaction of two merger and acquisition (M&A) effects: synergy (total value) and dominance (bargaining power). The interaction of these effects simultaneously determines the parties’ abnormal returns. We posit that M&A synergy effects correspond to changes in agency costs between target’s management and target’s shareholders, while the dominance effects correspond to the balance of power between acquirer and target during negotiations. Our structural estimates suggest that more stable or entrenched directors generate higher value during normal operations but are softer negotiators when their firm becomes an acquisition target.
Journal: Applied Economics
Pages: 4350-4365
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156237
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156237
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Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4350-4365
Template-Type: ReDIF-Article 1.0
Author-Name: Adusei Jumah
Author-X-Name-First: Adusei
Author-X-Name-Last: Jumah
Author-Name: Robert M. Kunst
Author-X-Name-First: Robert M.
Author-X-Name-Last: Kunst
Title: Optimizing time-series forecasts for inflation and interest rates using simulation and model averaging
Abstract:
Motivated by economic-theory concepts – the Fisher hypothesis and the theory of the term structure – we consider a small set of simple bivariate closed-loop time-series models for the prediction of price inflation and of long- and short-term interest rates. The set includes vector autoregressions (VAR) in levels and in differences, a cointegrated VAR and a non-linear VAR with threshold cointegration based on data from Germany, Japan, UK and the US. Following a traditional comparative evaluation of predictive accuracy, we subject all structures to a mutual validation using parametric bootstrapping. Ultimately, we utilize the recently developed technique of Mallows model averaging to explore the potential of improving upon the predictions through combinations. While the simulations confirm the traded wisdom that VARs in differences optimize one-step prediction and that error correction helps at larger horizons, the model-averaging experiments point at problems in allotting an adequate penalty for the complexity of candidate models.
Journal: Applied Economics
Pages: 4366-4378
Issue: 45
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1158915
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1158915
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Handle: RePEc:taf:applec:v:48:y:2016:i:45:p:4366-4378
Template-Type: ReDIF-Article 1.0
Author-Name: Julien Chevallier
Author-X-Name-First: Julien
Author-X-Name-Last: Chevallier
Author-Name: Stéphane Goutte
Author-X-Name-First: Stéphane
Author-X-Name-Last: Goutte
Title: Cross-country performance of Lévy regime-switching models for stock markets
Abstract:
This article compares the performance of regime-switching Lévy models across sixteen (16) international stock markets. From a cross-country perspective, the empirical application is dedicated to the study of equity markets in the Americas, Asia and Europe. The results are of interest for a financial audience in order to document the sensitivity of stock indexes to the intensity of jumps, under changing economic regimes (expansion or recession). We pick up singularities in Japan and Malaysia compared to other countries and regions of the world.
Journal: Applied Economics
Pages: 111-137
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192275
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192275
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Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:111-137
Template-Type: ReDIF-Article 1.0
Author-Name: Jonghak Sun
Author-X-Name-First: Jonghak
Author-X-Name-Last: Sun
Title: The effect of information technology on IT-facilitated coordination, IT-facilitated autonomy, and decision-makings at the individual level
Abstract:
The effect of information technology (IT) has been a central concern to economics of IT ever since it has been viewed as an important resource to improve firm productivity. Although significant research progress has been made on the impacts of IT use at the individual level, the mechanism of how IT use increases individual performance at work has not been fully explored. In an attempt to examine the IT effects on performance, we focus on individual work productivity gained from IT use. Following the discussion of previous works, we develop a research model, describing that the ubiquitous IT transforms the way individual employers’ work in organizations, and facilitates working processes and practices that may affect the decision-making of individual performance.As a result of testing the research model, we found not only that IT use does have a direct effect on the quality of decision-making in organizations, but that this effect is partially mediated by the extent of IT-facilitated autonomy and of IT-facilitated coordination. These findings suggest that the effects of IT use on decision-makings in an organization may be attributed, in part, to its beneficial use in coordination and tendency to foster more discretion.
Journal: Applied Economics
Pages: 138-155
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192276
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192276
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Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:138-155
Template-Type: ReDIF-Article 1.0
Author-Name: Sophie Clot
Author-X-Name-First: Sophie
Author-X-Name-Last: Clot
Author-Name: Charlotte Y. Stanton
Author-X-Name-First: Charlotte Y.
Author-X-Name-Last: Stanton
Author-Name: Marc Willinger
Author-X-Name-First: Marc
Author-X-Name-Last: Willinger
Title: Are impatient farmers more risk-averse? Evidence from a lab-in-the-field experiment in rural Uganda
Abstract:
Based on data from a field-experiment in rural Uganda, we show that impatient farmers are more risk-averse than patient farmers. We relied on a simplified version of the Convex Time Budget (CTB) method to elicit farmers’ time preferences and on an independent method for eliciting their risk-preferences. We report two important findings. First, we show that our simplified CTB method applied to farmers from Uganda replicates the key findings of Andreoni and Sprenger’s lab experiments that involved student subjects. Second, we establish the existence of a negative correlation between risk tolerance and impatience, based on two independent measures.
Journal: Applied Economics
Pages: 156-169
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192277
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192277
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Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:156-169
Template-Type: ReDIF-Article 1.0
Author-Name: Colin O’hare
Author-X-Name-First: Colin
Author-X-Name-Last: O’hare
Author-Name: Youwei Li
Author-X-Name-First: Youwei
Author-X-Name-Last: Li
Title: Modelling mortality: are we heading in the right direction?
Abstract:
Predicting life expectancy has become of upmost importance in society. Pension providers, insurance companies, government bodies and individuals in the developed world have a vested interest in understanding how long people will live for. This desire to better understand life expectancy has resulted in an explosion of stochastic mortality models many of which identify linear trends in mortality rates by time. In making use of such models for forecasting purposes, we rely on the assumption that the direction of the linear trend (determined from the data used for fitting purposes) will not change in the future, recent literature has started to question this assumption. In this article, we carry out a comprehensive investigation of these types of models using male and female data from 30 countries and using the theory of structural breaks to identify changes in the extracted trends by time. We find that structural breaks are present in a substantial number of cases, that they are more prevalent in male data than in female data, that the introduction of additional period factors into the model reduces their presence, and that allowing for changes in the trend improves the fit and forecast substantially.
Journal: Applied Economics
Pages: 170-187
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192278
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192278
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Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:170-187
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Huang
Author-X-Name-First: Wei
Author-X-Name-Last: Huang
Title: China’s secondary privatization: new evidence on controlling shareholders tunnelling
Abstract:
This article utilizes the 2005 split-share structure reform (SSSR) in China as a natural experiment and conducts difference-in-differences (DID) tests to analyse corporate governance changes among Chinese SOEs compared to POEs. We show that tunnelling significantly reduced in both POEs and SOEs after the SSSR. More importantly, we find a significant and positive ‘privatization effect’ on SOEs’ tunnelling activities during the post-reform period suggesting the reductions of tunnelling were smaller among SOEs than POEs following the SSSR. In contrast, excess returns around the SSSR indicate that investors expected a negative ‘privatization effect’ on SOEs’ tunnelling. These findings suggest that the quality of corporate governance did not improve among SOEs as a result of the secondary privatization as the stock market expected without fundamental changes to firm ownership and control following the SSSR. The benefits of privatization accrue to the government controlling shareholders rather than minority investors.
Journal: Applied Economics
Pages: 188-201
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1192279
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1192279
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Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:188-201
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Emmanuel Lukban Angeles
Author-X-Name-First: Joseph Emmanuel Lukban
Author-X-Name-Last: Angeles
Title: Assessing impact of regulatory risk on shareholders’ wealth
Abstract:
Research indicates that regulatory risk increases required return on investment by investors and causes underinvestment in industries with high sunk costs. The effects of regulatory changes may be measured by estimating the abnormal returns associated with the event. The results may suggest to regulators what should be encouraged or avoided. This article utilizes a fixed effects regression to examine abnormal returns from changes in Philippine nationalization regulations. The results are consistent with extant literature. Supreme Court decisions, which increased uncertainty and regulatory risk, produced negative abnormal returns. The initial release of draft implementing rules did not produce statistically significant effects, but a succeeding draft favouring liberalization, produced positive abnormal returns.
Journal: Applied Economics
Pages: 202-212
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194962
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194962
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Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:202-212
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Joseph Minviel
Author-X-Name-First: Jean Joseph
Author-X-Name-Last: Minviel
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Title: Effect of public subsidies on farm technical efficiency: a meta-analysis of empirical results
Abstract:
Investigating the impact of public subsidies on farm technical efficiency is becoming a critical issue in applied agricultural policy analysis. This article presents a meta-analysis of empirical results on this issue, based on data gathered from a systematic literature review. We find that, in the empirical literature, subsidies are commonly negatively associated with farm technical efficiency. Meta-regression estimation results show that the direction (significantly negative, significantly positive or non-significant) of the observed effects is sensitive to the way subsidies are modelled in the empirical studies.
Journal: Applied Economics
Pages: 213-226
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194963
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194963
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Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:213-226
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 2
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1203089
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203089
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Handle: RePEc:taf:applec:v:49:y:2017:i:2:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: Ann Marsden
Author-X-Name-First: Ann
Author-X-Name-Last: Marsden
Author-Name: Hugh Sibly
Author-X-Name-First: Hugh
Author-X-Name-Last: Sibly
Title: Third-degree price discrimination in a short-stay accommodation industry
Abstract:
This article analyses the pricing in the short-stay accommodation industry in Tasmania. It utilizes a novel 2008 survey of Tasmanian short-stay accommodation firms in which business managers were asked about their perception of the elasticity of their firm’s demand in each of the market segments that their firm supplied. This direct observation of elasticity allows us to demonstrate that firms’ price across market segments act in a manner consistent with the Lerner index and the theory of third-degree price discrimination. Further we show, in line with expectations based on the literature, that increased quality of the accommodation lowers the elasticity of demand, while the elasticity of demand is higher in winter. Surprisingly, Internet sales channels do not exhibit a different elasticity of demand to other sales channels.
Journal: Applied Economics
Pages: 5166-5182
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302063
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302063
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Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5166-5182
Template-Type: ReDIF-Article 1.0
Author-Name: Arturo Bujanda
Author-X-Name-First: Arturo
Author-X-Name-Last: Bujanda
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Title: Impacts of transportation infrastructure on single-family property values
Abstract:
New or long-standing public infrastructure such as highways, airports, and ports of entry (POE) can increase adjacent property values generating a value premium for private developers and adjacent property owners. States and local governments aim to determine the geographic footprint and anticipate the economic value created by transportation infrastructure proximity and accessibility since it represents an opportunity to capture some infrastructure costs. Hence, it is desirable to understand the degree of correlation between transportation infrastructure proximity and changes in real property values in a spatial context particularly when defining economic development zones where transportation investments are planned and where governments expect to recover some of the infrastructure cost from increases in real property values. This research applies geographically weighted regression (GWR) analysis to determine the geographic footprint and quantify the impacts of transportation infrastructure proximity and accessibility on real property values in El Paso, Texas using a 2013 cross-sectional data set. The presence of spatial nonstationarity and heterogeneity confirms that transportation infrastructure proximity and accessibility might generate premiums on real property values, but that such premiums are not always positive and are occasionally negative. GWR shows that benefits from a transportation facility can be capitalized by non-adjacent parcels. Finally, GWR maps can help better policy development by estimating how much value is added by infrastructure proximity and accessibility throughout particular locations.
Journal: Applied Economics
Pages: 5183-5199
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302064
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302064
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Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5183-5199
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Alexandre Mahieu
Author-X-Name-First: Pierre-Alexandre
Author-X-Name-Last: Mahieu
Author-Name: François-Charles Wolff
Author-X-Name-First: François-Charles
Author-X-Name-Last: Wolff
Author-Name: Jason Shogren
Author-X-Name-First: Jason
Author-X-Name-Last: Shogren
Author-Name: Pascal Gastineau
Author-X-Name-First: Pascal
Author-X-Name-Last: Gastineau
Title: Interval bidding in a distribution elicitation format
Abstract:
Interval bidding allows people to report a range of values for a non-market good. Herein, we allow people to choose their distribution over this range endogenously. We consider a multiplicative error model explaining the willingness to pay (WTP) which is estimated using a feasible generalized least squares estimator. We apply our framework to a representative sample of the French population who were asked about the valuation of a bear conservation programme. We find that most participants prefer stating their WTP as a range rather than a point, but the shape of the distribution greatly varies across people. Our results support the use of the interval bidding with endogenous distribution approach in valuation studies.
Journal: Applied Economics
Pages: 5200-5211
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302065
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302065
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Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5200-5211
Template-Type: ReDIF-Article 1.0
Author-Name: Komivi Afawubo
Author-X-Name-First: Komivi
Author-X-Name-Last: Afawubo
Author-Name: Samuel Mathey
Author-X-Name-First: Samuel
Author-X-Name-Last: Mathey
Title: The effectiveness of aid on savings and investment in Sub-Saharan Africa: do volatility and institutional quality matter?
Abstract:
The effectiveness of aid is somewhat subject to its volatility. This study investigates the impact of aid volatility, especially on savings and investment, with a particular focus on the role of institutional quality in 45 Sub-Saharan African (SSA) countries over the period from 1990 to 2013. We used the Generalized Method of Moments (GMM) technique combined with a measure of volatility, namely an averaged data method involving six 4-year sub-periods. Our results suggest that while aid is positively associated with savings and investment, its volatility is harmful to savings and investment. However, when higher quality institutions exist, the volatility of aid has a less negative impact on savings and investment.The policy implications are diverse; first, donors and SSA aid-dependent countries need to take into account the diversity of shocks to which aid can respond in mitigating its unpredictability. Secondly, SSA countries should be encouraged to establish the conditions for better quality institutions to mitigate the negative effects of the volatility of aid on macroeconomic aggregates such as savings and investment.
Journal: Applied Economics
Pages: 5212-5230
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302066
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302066
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Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5212-5230
Template-Type: ReDIF-Article 1.0
Author-Name: Anna P. I. Vong
Author-X-Name-First: Anna P. I.
Author-X-Name-Last: Vong
Author-Name: Duarte Trigueiros
Author-X-Name-First: Duarte
Author-X-Name-Last: Trigueiros
Title: Evidence on the effect of ‘Claw-Back’ provisions on IPO share allocation and underpricing in Hong Kong
Abstract:
The article examines share allocation practices of over 300 initial public offerings (IPOs) in Hong Kong during the years immediately following the enacting of a ‘Claw-Back’ provision for IPO share reallocation. The examination of exhaustive micro-level data reveals that small (uninformed, retail) investors earn higher initial returns than large investors. Before the enacting of the ‘Claw-Back’ provision, small investors were unfavourably treated in relation to large investors. The pattern now prevailing in the proportion of shares allocated to small and large investors also differs from that observed previously. When attempting to isolate the determinants of IPO underpricing in Hong Kong, the article also shows that both the ‘informed demand’ hypothesis and the signalling effect of underwriters’ reputation are significant determinants of underpricing. Such result, not visible when pooled OLS regressions are used, becomes apparent through the use of a system of simultaneous equations.
Journal: Applied Economics
Pages: 5231-5244
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302067
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302067
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Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5231-5244
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Collins
Author-X-Name-First: Matthew
Author-X-Name-Last: Collins
Author-Name: John Curtis
Author-X-Name-First: John
Author-X-Name-Last: Curtis
Title: Value for money in energy efficiency retrofits in Ireland: grant provider and grant recipients
Abstract:
The Sustainable Energy Authority of Ireland (SEAI) administers the Better Energy Homes scheme to provide a financial incentive for home owners to engage in energy efficiency retrofits. This study analyses data from the scheme and Building Energy Rating data for participants to the scheme to examine the value for money achieved by households. In addition, this research identifies which retrofit combinations provide greatest value for money, in terms of energy efficiency gains, for the grant provider. We utilize an error-in-variables approach to model the variation in benefits accruing to households of varying characteristics. We find that household and grant provider surplus can be maximized in the short term by retrofitting less energy efficient and larger homes, timber or steel frame homes and houses rather and apartments. The types of retrofits leading to the greatest surplus for both household and grant provider include cavity wall insulation paired with either a boiler with heating controls or heating controls only retrofit.
Journal: Applied Economics
Pages: 5245-5267
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302068
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302068
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Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5245-5267
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Bachmann
Author-X-Name-First: Ronald
Author-X-Name-Last: Bachmann
Author-Name: Hanna Frings
Author-X-Name-First: Hanna
Author-X-Name-Last: Frings
Title: Monopsonistic competition, low-wage labour markets, and minimum wages – An empirical analysis
Abstract:
This article investigates the degree of monopsony power of employers in different industries against the background of a statutory minimum wage introduction in Germany in January 2015. A semi-structural estimation approach is employed based on a dynamic model of monopsonistic competition. The empirical analysis relies on a linked employer–employee data set which allows to control for observed heterogeneity both on the worker and on the firm side. The results show important differences in monopsonistic competition among low-wage industries: While retailing, the hotel and restaurant industry as well as agriculture can be described as monopsonistic labour markets, this is not true for other services and manufacturing of food products. From a policy point of view, the introduction of a uniform minimum wage may therefore lead to different employment reactions in industries with a similar minimum wage bite.
Journal: Applied Economics
Pages: 5268-5286
Issue: 51
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1302069
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302069
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Handle: RePEc:taf:applec:v:49:y:2017:i:51:p:5268-5286
Template-Type: ReDIF-Article 1.0
Author-Name: Plamen Nikolov
Author-X-Name-First: Plamen
Author-X-Name-Last: Nikolov
Author-Name: Nusrat Jimi
Author-X-Name-First: Nusrat
Author-X-Name-Last: Jimi
Title: What factors drive individual misperceptions of the returns to schooling in Tanzania? Some lessons for education policy
Abstract:
Evidence on educational returns and the factors that determine the demand for schooling in developing countries is extremely scarce. Building on previous studies that show individuals underestimating the returns to schooling, we use two surveys from Tanzania to estimate both the actual and perceived schooling returns and subsequently examine what factors drive individual misperceptions regarding actual returns. Using OLS and instrumental variable methods, we find that each additional year of schooling in Tanzania increases earnings, on average, by 9 to 11%. We find that on average individuals underestimate returns to schooling by 74 to 79% and three factors are associated with these misperceptions: income, asset, poverty and educational attainment. Shedding light on what factors relate to individual beliefs about educational returns can inform policy on how to structure effective interventions in order to correct individual misperceptions.
Journal: Applied Economics
Pages: 4705-4723
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466991
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466991
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Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4705-4723
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoli L. Etienne
Author-X-Name-First: Xiaoli L.
Author-X-Name-Last: Etienne
Author-Name: Scott H. Irwin
Author-X-Name-First: Scott H.
Author-X-Name-Last: Irwin
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Title: Speculation and corn prices
Abstract:
It is commonly asserted that speculative trading activities are largely behind the high and volatile food commodity price behaviour since 2006. In this article, we revisit this hypothesis by investigating how different speculative measures affect our conclusion on the role of speculation. Four speculative measures are considered, including index trading activities, non-commercial net long positions, Working’s speculative index, and an excessive speculative volume index. These four measures imply different underlying hypotheses about the role of speculation on commodity price movements and encompass most of the measures used in the recent literature on the role of speculation in commodity markets. Using a structural vector autoregressive (SVAR) model, we show a mixed impact of speculative trading on corn prices depending on the measure used. While shocks to index trading activities and excess speculation as measured by Working’s T have either zero or negative impact on corn prices, a positive shock to non-commercial net positions or the Tadesse index significantly increases the price of corn. However, the magnitude of the impact is not large, at most about $0.30 per bushel in real terms. Our findings are robust to structural breaks, alternative ordering of variables, and an alternative specification of the model.
Journal: Applied Economics
Pages: 4724-4744
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466992
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466992
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Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4724-4744
Template-Type: ReDIF-Article 1.0
Author-Name: Wenjun Feng
Author-X-Name-First: Wenjun
Author-X-Name-Last: Feng
Author-Name: Yiming Wang
Author-X-Name-First: Yiming
Author-X-Name-Last: Wang
Author-Name: Zhengjun Zhang
Author-X-Name-First: Zhengjun
Author-X-Name-Last: Zhang
Title: Can cryptocurrencies be a safe haven: a tail risk perspective analysis
Abstract:
Cryptocurrencies are one of the most promising financial innovations of the last decade. Different from major stock indices and the commodities of gold and crude oil, the cryptocurrencies exhibit some characteristics of immature market assets, such as auto-correlated and non-stationary return series, higher volatility, and higher tail risks measured by conditional Value at Risk (VaR) and conditional expected shortfall (ES). Using an extreme-value-theory-based method, we evaluate the extreme characteristics of seven representative cryptocurrencies during 08 August 2015–01 August 2017. We find that during the sub-period of 01 August 2016–01 August 2017, there are finite loss boundaries for most of the selected cryptocurrencies, which are similar to the commodities, and different from the stock indices. Meanwhile, we find that left tail correlations are much stronger than right tail correlations among the cryptocurrencies, and tail correlations increased after August 2016, suggesting high and growing systematic extreme risks. We also find that cryptocurrencies to be both left tail independent, and cross tail independent with four selected stock indices, which implies part of the safe-haven function of the cryptocurrencies, indicating their ability to be a great diversifier for the stock market as gold, but not enough to be a tail hedging tool like gold.
Journal: Applied Economics
Pages: 4745-4762
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466993
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466993
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Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4745-4762
Template-Type: ReDIF-Article 1.0
Author-Name: Shui Ki Wan
Author-X-Name-First: Shui Ki
Author-X-Name-Last: Wan
Author-Name: Long Zhao
Author-X-Name-First: Long
Author-X-Name-Last: Zhao
Title: Assessing the role of components of life satisfaction
Abstract:
Factors affecting subjective well-being and their gross effect measurement have been widely studied. However, how people derive utility from these factors has not been fully explored. This article provides a way to decompose the gross effect of major determinants on life satisfaction into direct and indirect effects and make inference for the latter. Because the indirect effect is nonlinear in parameters associated with different models in an equation system, it creates a problem in estimating the standard error. Besides, the categorical nature in survey data further introduces bias to the covariance estimation even asymptotically. To address these issues without knowing the form of heteroskedasticity under the null hypothesis, we propose to extend the wild bootstrap procedure in this particular context. Its robustness against various data properties is validated via several simulation experiments. Using three recent waves of World Values Survey, we find that the relative importance of life control has significantly increased recently, and endowing citizens with the right to enjoy their freedoms and liberties is a more effective policy in raising life satisfaction than promoting national income.
Journal: Applied Economics
Pages: 4763-4773
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466994
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466994
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Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4763-4773
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Olorunfemi Akande
Author-X-Name-First: Joseph Olorunfemi
Author-X-Name-Last: Akande
Author-Name: Farai Kwenda
Author-X-Name-First: Farai
Author-X-Name-Last: Kwenda
Author-Name: Dimu Ehalaiye
Author-X-Name-First: Dimu
Author-X-Name-Last: Ehalaiye
Title: Competition and commercial banks risk-taking: evidence from Sub-Saharan Africa region
Abstract:
This study investigates the relationship between competition and the risk-taking attitude of banks. We test how this relationship manifests in the Sub-Saharan African(SSA) region’s commercial banks in light of the competition-fragility view, using the generalized methods of moments. We studied 440 commercial banks in 37 SSA countries over the period 2006–2015. The results provide evidence that supports a positive relationship between competition and banks’ overall risk as well as their credit risk but suggests that off-balance sheet risk reduces with competition. We, therefore, conclude that the propensity to undertake higher risk in a competitive banking environment largely accounts for fragility as argued in the competition-fragility view.
Journal: Applied Economics
Pages: 4774-4787
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1466995
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1466995
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Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4774-4787
Template-Type: ReDIF-Article 1.0
Author-Name: Cécile Casteuble
Author-X-Name-First: Cécile
Author-X-Name-Last: Casteuble
Author-Name: Emmanuelle Nys
Author-X-Name-First: Emmanuelle
Author-X-Name-Last: Nys
Author-Name: Philippe Rous
Author-X-Name-First: Philippe
Author-X-Name-Last: Rous
Title: Do bank bondholders price banks’ ability to manage risk/return?
Abstract:
In this paper, we empirically investigate whether bank bondholders value risk management, measured as risk-return efficiency (RRE), when pricing bond spreads. Based on a sample of 2,452 bonds issued by 78 European listed banks, for the period 2001–2015, we find evidence that the ability of banks to manage risk affects bond spreads: banks with more capable managers obtain a lower cost of debt. In particular our results show that bank bondholders are even more sensitive to RRE during the crisis period, for relatively poorly rated bonds, for unsecured/subordinated debt, and for long maturity debt. Our findings highlight that bondholders’ monitoring of banks is effective and takes into account the efficiency of risk management during financial and economic downturns, but during sound periods bank bondholders should strengthen their monitoring of risk management.
Journal: Applied Economics
Pages: 4788-4802
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1467552
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467552
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Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4788-4802
Template-Type: ReDIF-Article 1.0
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Carl Chen
Author-X-Name-First: Carl
Author-X-Name-Last: Chen
Title: The domino effect of credit defaults: test of asymmetric default correlations using realised default data
Abstract:
Using the research framework of a domino effect in firms, we first make theoretical contributions by addressing several testable hypotheses regarding asymmetrical default correlations. We then employ Lucas’s method to provide empirical evidence based on realised historical default data in the United States from 1992 to 2013. Our empirical results are consistent with the following notions. First, default correlations increase with the time horizon. Second, firms with low credit quality, small size, illiquidity, and a high beta exhibit higher default correlations. Credit risk management without considering asymmetrical default correlations could underestimate portfolio risk due to default clustering.
Journal: Applied Economics
Pages: 4803-4813
Issue: 44
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1467553
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467553
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Handle: RePEc:taf:applec:v:50:y:2018:i:44:p:4803-4813
Template-Type: ReDIF-Article 1.0
Author-Name: Anne Musson
Author-X-Name-First: Anne
Author-X-Name-Last: Musson
Author-Name: Damien Rousselière
Author-X-Name-First: Damien
Author-X-Name-Last: Rousselière
Title: Exploring the effect of crisis on cooperatives: a Bayesian performance analysis of French craftsmen cooperatives
Abstract:
The aim of this paper is to understand the economic performance of craftsmen cooperatives during the crisis period. These cooperatives have the distinctive feature of being supply cooperatives. We use an exhaustive dataset for the French craftsmen cooperatives (2004–2014). We estimate Bayesian Translog econometric models in order to underline the impact of the 2008 crisis on these cooperatives. On the one hand, cooperatives’ turnover and economies of scales decrease during the crisis, the effect is lower for elder cooperatives and varies across sectors. On the other hand, there is a convergence towards the mean for the various generations of cooperatives. These findings are robust to alternative econometric specifications.
Journal: Applied Economics
Pages: 2657-2678
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693699
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693699
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Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2657-2678
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Muhammad Ali Nasir
Author-X-Name-First: Muhammad Ali
Author-X-Name-Last: Nasir
Title: Asymmetric J-curve: evidence from industry trade between U.S. and U.K.
Abstract:
Previous research that assessed the impact of exchange rate changes on the trade balance between the U.S. and U.K. assumed the effects are symmetric. In this paper, we add to the literature on the asymmetric J-curve phenomenon by considering the trade balance of 68 two-digit industries that trade between the two countries. We find short-run asymmetric effects of the real dollar-pound rate in almost all industries. However, short-run asymmetric effects were translated into significant long-run asymmetric effects in 25 industries. Indeed, the asymmetric J-curve hypothesis was supported in 18 industries.
Journal: Applied Economics
Pages: 2679-2693
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693700
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693700
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Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2679-2693
Template-Type: ReDIF-Article 1.0
Author-Name: Wenying Li
Author-X-Name-First: Wenying
Author-X-Name-Last: Li
Author-Name: Chen Zhen
Author-X-Name-First: Chen
Author-X-Name-Last: Zhen
Author-Name: Jeffrey H. Dorfman
Author-X-Name-First: Jeffrey H.
Author-X-Name-Last: Dorfman
Title: Modelling with flexibility through the business cycle: using a panel smooth transition model to test for the lipstick effect
Abstract:
Consumer spending typically declines during periods of economic distress, but observers have noted that lipstick purchases appear to increase during recessions, which is often referred to as the lipstick effect. However, the existence of such effect has remained empirically unconfirmed. Using weekly retail scanner data on lipstick sales from 2006 to 2016 in the United States, we applied a Panel Smooth Transition Regression (PSTR) demand model to test the relationship between economic distress and lipstick sales. This flexible demand specification allows regression coefficients to vary as a function of an exogenous macroeconomic variables and fluctuate asymmetrically, non-linearly, and time-varyingly across an unlimited number of regimes. Empirical results show the income elasticity of demand for lipstick decreased rapidly from 0.31 to 0.05 during the 2007–2009 recession, then slowly rebounded to 0.31 by the second quarter of 2014, thus first empirically confirming the existence of the lipstick effect.
Journal: Applied Economics
Pages: 2694-2704
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693701
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693701
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Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2694-2704
Template-Type: ReDIF-Article 1.0
Author-Name: Yusuf Ekrem Akbas
Author-X-Name-First: Yusuf Ekrem
Author-X-Name-Last: Akbas
Title: The effects of exchange rate pass-through and cost channel on price level: The case of fragile five countries
Abstract:
In this study, we investigated whether the exchange rate and the interest rate had an effect on the inflation rate in the fragile five countries between the years of 1996Q4 and 2015Q4. In this context, a model was created to estimate the effect of interest rate and exchange rate on the inflation rate. The methods used in the study take into account cross-section dependence and heterogeneity. As a result of the analysis, it was determined that there was an exchange-rate and interest-rate pass-through effect in the fragile five countries. Moreover, it was found out that the cost channel and price puzzle were effective in Indonesia and South Africa but were not effective in Turkey, Brasil and India.
Journal: Applied Economics
Pages: 2705-2722
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1694133
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1694133
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Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2705-2722
Template-Type: ReDIF-Article 1.0
Author-Name: James L. Swofford
Author-X-Name-First: James L.
Author-X-Name-Last: Swofford
Title: Uber’s early entry decisions in the US
Abstract:
Early entry decisions of the firm are crucial to its success. Ride-sharing businesses developed due to technology and government regulation. With the advent of the ride-sharing technology, firms like Uber, Lyft, etc. were faced with the decision of which markets to enter first. For this paper, a model is developed of a profit-maximizing firm constrained from entering all markets simultaneously. The entry decision of Uber into the 50 most populous US metropolitan statistical areas (MSA) is examined. The results suggest Uber’s entry decision was constrained and affected by both revenue potential and regulation in the local taxi industry.
Journal: Applied Economics
Pages: 2723-2729
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1694633
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1694633
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Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2723-2729
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyang Wang
Author-X-Name-First: Xiaoyang
Author-X-Name-Last: Wang
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Author-Name: Scott H. Irwin
Author-X-Name-First: Scott H.
Author-X-Name-Last: Irwin
Title: Is the corn futures market noisier? The impact of high frequency quoting
Abstract:
The paper pioneers research on high frequency (HF) quoting noise in electronically traded agricultural futures markets. HF quoting – quickly cancelling posted limit orders and replacing them with new ones – emerges as a strategy for liquidity-providing traders. HF quoting can generate noise in price quotes which adds uncertainty to order execution and impairs the informational value of bid and ask prices. It can also lead to the perception that markets cannot be trusted for commercial transactions. Using intraday Best Bid Offer data for 2008–2013 and wavelet-based measures of volatility, we investigate the excess variance and co-movement discrepancies in the bid and ask prices. We find excess HF quoting variance exists. It is the highest at 250-ms scale – 90% higher than the variance implied by a random walk – but declines quickly to 7% at the 32 s scale. But its economic magnitude is negligibly small. Bid and ask price co-movements show a low degree of discrepancy with average correlations at 0.67 at 250 ms and reaching 0.95 at 8 s. All measures indicate that HF quoting noise has declined through the period. Overall, HF quoting has not caused excess variance during the transition to electronic trading in the liquid corn futures market.
Journal: Applied Economics
Pages: 2730-2750
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696450
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696450
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Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2730-2750
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Jetté-Nantel
Author-X-Name-First: Simon
Author-X-Name-Last: Jetté-Nantel
Author-Name: Wuyang Hu
Author-X-Name-First: Wuyang
Author-X-Name-Last: Hu
Author-Name: Yumei Liu
Author-X-Name-First: Yumei
Author-X-Name-Last: Liu
Title: Economies of scale and mechanization in Chinese corn and wheat production
Abstract:
As the growth in Chinese farm productivity slowed down between 2000 and 2010, modernizing agriculture has become a priority of the Chinese government. Given the important role of mechanization and land reform policies in that context, this study investigates farm production in China with a specific emphasis on the potential role of mechanization as well as land and farm consolidation. A production function is estimated using farm household data on corn and wheat production in the Shandong and Hebei provinces. The results allowed us to explore the potential economies of scale across a range of farm size, the impact of land fragmentation, and assess the impact of machinery usage. Our findings suggest that, taken in isolation, the prospect for efficiency gains from mechanization and land reforms appears limited.
Journal: Applied Economics
Pages: 2751-2765
Issue: 25
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1696933
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1696933
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Handle: RePEc:taf:applec:v:52:y:2020:i:25:p:2751-2765
Template-Type: ReDIF-Article 1.0
Author-Name: Yuhan Xue
Author-X-Name-First: Yuhan
Author-X-Name-Last: Xue
Title: Health returns to modern heating: evidence from China
Abstract:
This study analyses the health effects of modern heating, using China’s centralized home heating infrastructure as a natural experiment. The underlying health mechanism is that the recipients of modern heating do not need to rely on traditional fuels to heat their homes and thus suffer from less exposure to indoor air pollution. Furthermore, the improved quality of heating leads to health improvements. This article exploits spatial and time variation in the implementation of China’s centralized heating program, utilizing a difference-in-difference framework. Spatial variation takes the form of a discrete geographical cut-off between regions that receive centralized home heating and those that do not. Results show that areas with centralized heating have a 0.13% decrease in perinatal deaths and a decrease of 1.17% in the proportion of low-birth-weight infants. This translates into about 7000 fewer deaths and about 60,000 fewer low-birth-weight infants each year. Hence, there are enormous health benefits to the public provision of modern heat as a substitute for traditional heating methods, which are shown to be injurious to early-life health. These results strongly suggest that policymakers in developing countries should consider promoting cleaner heating methods.
Journal: Applied Economics
Pages: 1059-1073
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349292
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349292
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Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1059-1073
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Amid Motavallizadeh-Ardakani
Author-X-Name-First: Amid
Author-X-Name-Last: Motavallizadeh-Ardakani
Title: Inequality and growth in the United States: is there asymmetric response at the state level?
Abstract:
A previous study that tried to assess the impact of economic growth on income inequality in the U.S. used state-level data and an ARDL panel model to conclude that economic growth worsens income inequality in the U.S. In this article, we use the same data set but an ARDL time-series model applied to each state in the U.S. to show that the above conclusion is only valid in 20 states. Additionally, we use a nonlinear ARDL approach to show that the effects are asymmetric in the short run as well as in the long run. Significant long-run asymmetric effects reveal that in 28 states both an increase and a decrease in real output have worsened income distribution.
Journal: Applied Economics
Pages: 1074-1092
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349293
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349293
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Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1074-1092
Template-Type: ReDIF-Article 1.0
Author-Name: Amélie Charles
Author-X-Name-First: Amélie
Author-X-Name-Last: Charles
Author-Name: Olivier Darné
Author-X-Name-First: Olivier
Author-X-Name-Last: Darné
Author-Name: Fabien Tripier
Author-X-Name-First: Fabien
Author-X-Name-Last: Tripier
Title: Uncertainty and the macroeconomy: evidence from an uncertainty composite indicator
Abstract:
This article proposes a uncertainty composite indicator (UCI) based on three distinct sources of uncertainty (namely financial, political, and macroeconomic) for the US economy on the period 1985–2015. For that, we use a dynamic factor model, summarizing efficiently six individual uncertainty proxies, namely two macroeconomic and financial uncertainty factors based on the unpredictability, a measure of (micro)economic uncertainty, the implied volatility index, the corporate bond spreads, and an index of economic policy uncertainty. We then compare the effects of uncertainty on economic activity when the UCI is used instead of individual uncertainty proxies in structural VAR models. The interest of our UCI is to synthesize theses effects within one measure of uncertainty. Overall, the UCI was able to account for the most important dynamics of uncertainty which play an important role in business cycles.
Journal: Applied Economics
Pages: 1093-1107
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349294
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349294
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Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1093-1107
Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Miyazaki
Author-X-Name-First: Takeshi
Author-X-Name-Last: Miyazaki
Title: Examining the relationship between municipal consolidation and cost reduction: an instrumental variable approach
Abstract:
This study explores the cost-reduction effects of local government consolidation, using data from Japanese municipalities. We use municipal panel data from Japan for the years 2000, 2005 and 2010, a data set including numerous consolidation cases. Reverse causality between consolidation decisions and size of municipal expenditure is a concern in the voluntary consolidation of local governments. An instrumental variable (IV) methodology is employed to deal with possible endogeneity associated with consolidation decisions. The main finding is that municipal current expenditure per capita increases immediately after consolidation, but then gradually declines. Because consolidation seems to increase per capita expenditure in the absence of the effect of this long-term declining trend, incorporating this trend into estimation is crucial in cost-efficiency analysis of consolidation. It is also shown that conventional panel data regressions yield biased consolidation effects, suggesting the superiority of the IV approach.
Journal: Applied Economics
Pages: 1108-1121
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1352077
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352077
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Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1108-1121
Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Lassance
Author-X-Name-First: Nathan
Author-X-Name-Last: Lassance
Author-Name: Frédéric Vrins
Author-X-Name-First: Frédéric
Author-X-Name-Last: Vrins
Title: A comparison of pricing and hedging performances of equity derivatives models
Abstract:
This article investigates the pricing/hedging conundrum, i.e. the observation of a mismatch between derivatives models’ pricing and hedging performances, that has so far been under-emphasized as the literature tends to focus on increasingly complicated option pricing models, without adequately addressing hedging performance. Hence, we analyse the ability of the Black–Scholes, Practitioner Black–Scholes, Heston–Nandi and Heston models to Delta-hedge a set of call options on the S&P500 index and Apple stock. We extend earlier studies in that we consider the impact of asset dynamics, apply a stringent payoff replication strategy, look at the impact of moneyness at maturity and test for the robustness to the parameters’ calibration frequency and Delta-Vega hedging. The study shows that adding risk factors to a model, as stochastic volatility, should only be considered in light of the data dynamics. Even then, however, more complicated models generally fare poorly for hedging purposes. Hence, a better fit of a model to option prices is not a good indicator of its hedging performance, and so of its ability to describe the underlying dynamics. This can be understood for reasons of over-fitting. Those findings hint to a potentially appealing hedging-based calibration of models’ parameters, rather than the standard pricing-based one.
Journal: Applied Economics
Pages: 1122-1137
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1352080
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352080
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Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1122-1137
Template-Type: ReDIF-Article 1.0
Author-Name: Tammuz H. Alraheb
Author-X-Name-First: Tammuz H.
Author-X-Name-Last: Alraheb
Author-Name: Amine Tarazi
Author-X-Name-First: Amine
Author-X-Name-Last: Tarazi
Title: Local versus International Crises and Bank Stability: does bank foreign expansion make a difference?
Abstract:
We investigate the impact of global and local crises on bank stability in the MENA region and examine the effect of owning bank subsidiaries in other countries. We consider banks that experienced both types of crises during our sample period. Our findings highlight a negative impact of the Global Financial Crisis of 2007–2008 on bank stability but, on the whole, no negative impact of the local crisis. A deeper investigation shows that owning bank subsidiaries outside the home country is a source of increased fragility during normal times, yet a source of higher stability during the local crisis but not during the international crisis. Moreover, owning foreign subsidiaries in one or two world regions is insufficient to neutralize both types of crises, while being present in three or more regions is more stabilizing during a local crisis but also more destabilizing during an international crisis. Our findings contribute to the literature examining bank stability and have several policy implications.
Journal: Applied Economics
Pages: 1138-1155
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1352081
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352081
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Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1138-1155
Template-Type: ReDIF-Article 1.0
Author-Name: Fidel Gonzalez
Author-X-Name-First: Fidel
Author-X-Name-Last: Gonzalez
Author-Name: Santosh Kumar
Author-X-Name-First: Santosh
Author-X-Name-Last: Kumar
Title: Prenatal care and birthweight in Mexico
Abstract:
We estimate the marginal impact of prenatal care (PNC) on birth outcomes in Mexico using nationally representative data on about 14 million births from 2009 to 2014. Given the possible self-selection into PNC, we attempt to identify the causal impact of PNC on birth outcomes by estimating an instrumental variable model. We find positive impacts of increased prenatal visits on birthweight (BW), length and apgar score of the newborn. Moreover, the impacts of PNC on birth outcomes differ by mother’s education, development level of the municipality where the mother resides and BW distribution. We also find suggestive evidence that PNC visits affect birth outcomes through the reduction in pre-term births.
Journal: Applied Economics
Pages: 1156-1170
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1355540
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355540
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Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:1156-1170
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: ebi-ebi
Issue: 10
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1365509
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1365509
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Handle: RePEc:taf:applec:v:50:y:2018:i:10:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Gianko Michailidis
Author-X-Name-First: Gianko
Author-X-Name-Last: Michailidis
Author-Name: Concepció Patxot
Author-X-Name-First: Concepció
Author-X-Name-Last: Patxot
Author-Name: Meritxell Solé
Author-X-Name-First: Meritxell
Author-X-Name-Last: Solé
Title: Do pensions foster education? An empirical perspective
Abstract:
The paper examines the effect of population ageing on public education spending. On the one hand, ageing is expected to have a negative effect on education, as an increasing number of retirees results in ‘intergenerational conflict’ and, hence, the condemnation of education expenditure. On the other hand, ageing, in combination with pay-as-you-go pension systems, offers incentives for the working-age generation to invest in the public education of the young in order to ‘reap’ the benefits (that is, higher income tax/contributions) of their greater future productivity. Empirical evidence derived from the application of a fixed effects approach to panel data for OECD countries shows that the increasing share of elderly people has a non-linear effect on education spending. This indicates a certain degree of intergenerational conflict. Nevertheless, we find that future population ageing, which reinforces the mechanism linking public education and pensions, reflects positively on education expenditure. Furthermore, by disaggregating total education expenditure by educational levels, we observe that this effect is led by levels of non-compulsory education, probably as a reflection of the direct connection to labor productivity.
Journal: Applied Economics
Pages: 4127-4150
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588949
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588949
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Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4127-4150
Template-Type: ReDIF-Article 1.0
Author-Name: Yuxin Cai
Author-X-Name-First: Yuxin
Author-X-Name-Last: Cai
Author-Name: Jianqiao Hong
Author-X-Name-First: Jianqiao
Author-X-Name-Last: Hong
Title: Dynamic relationship between stock market trading volumes and investor fear gauges movements
Abstract:
This article applies multifractal detrended fluctuation analysis (MF-DFA) and multifractal detrended cross-correlation analysis (MF-DCCA) to investigate cross-correlation behaviours between two kinds of stock markets trading volumes and investor fear gauges covering the data of U.S. stock markets from 2 January 2004 to 31 July 2018. The empirical results show that the dynamic relationship between stock markets trading volume fluctuations and different kinds of investor fear gauges are multifractal and find that the dynamic relationship is strongly anti-persistent. Moreover, financial crisis in 2008 has a significant impact on the cross-correlated behaviour, suggesting that stock market trading volume fluctuations and investor fear gauges are more susceptible to each other during the financial crisis period. Through the rolling windows analysis, we also find that the stock markets trading volume fluctuations and different kinds of investor fear gauges are anti-persistent dynamic cross-correlated.
Journal: Applied Economics
Pages: 4218-4232
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1588954
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1588954
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Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4218-4232
Template-Type: ReDIF-Article 1.0
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: Xinjie Lu
Author-X-Name-First: Xinjie
Author-X-Name-Last: Lu
Author-Name: Ke Yang
Author-X-Name-First: Ke
Author-X-Name-Last: Yang
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Volatility forecasting: long memory, regime switching and heteroscedasticity
Abstract:
In this article, we account for the first time for long memory, regime switching and the conditional time-varying volatility of volatility (heteroscedasticity) to model and forecast market volatility using the heterogeneous autoregressive model of realized volatility (HAR-RV) and its extensions. We present several interesting and notable findings. First, existing models exhibit significant nonlinearity and clustering, which provide empirical evidence on the benefit of introducing regime switching and heteroscedasticity. Second, out-of-sample results indicate that combining regime switching and heteroscedasticity can substantially improve predictive power from a statistical viewpoint. More specifically, our proposed models generally exhibit higher forecasting accuracy. Third, these results are widely consistent across a variety of robustness tests such as different forecasting windows, forecasting models, realized measures, and stock markets. Consequently, this study sheds new light on forecasting future volatility.
Journal: Applied Economics
Pages: 4151-4163
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1589645
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1589645
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Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4151-4163
Template-Type: ReDIF-Article 1.0
Author-Name: Akbar Marvasti
Author-X-Name-First: Akbar
Author-X-Name-Last: Marvasti
Title: Effect of government regulations on the severity of injuries in fisheries
Abstract:
This study analyses the severity of commercial fishing accidents in the Gulf of Mexico using data from the USCG. Estimates from ordered probit models find no statistically significant effect for either the IFQGT program or the Coast Guard Authorization Act of 2010. However, the presence of an NOAA observer on fishing vessels appears to have reduced the severity of injuries during the study period, which can be partially attributed to the success of the USCG vessel safety certification program. Poor weather conditions increase the likelihood of fatality, particularly when a person falls overboard. Information from the interaction effects between poor weather conditions and vessel attributes can be used in designing new commercial fishing vessels to enhance safety.
Journal: Applied Economics
Pages: 4164-4175
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1590525
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1590525
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Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4164-4175
Template-Type: ReDIF-Article 1.0
Author-Name: Sean M. Dougherty
Author-X-Name-First: Sean M.
Author-X-Name-Last: Dougherty
Author-Name: Octavio R. Escobar
Author-X-Name-First: Octavio R.
Author-X-Name-Last: Escobar
Title: What policies to combat labour informality? Evidence from Mexico
Abstract:
Informality often concerns policymakers due to its negative implications on productivity and poverty. In recent years, the extent of informal employment has diverged across Mexican states. Varying informal employment dynamics within a comparable institutional environment offers scope to identify policies that can reduce informality. This paper uses cross-state panel and individual data to examine the determinants of informal employment, exploiting the diverging outcomes across states, industries and time. The results suggest that there is no ‘silver bullet’ to combat informality, yet a package of policies promoting labour skills, encouraging foreign investment, enhancing tax enforcement and deterring corruption can reduce informal employment. Intriguingly, reducing the cost to start a business is found to have a non-linear effect on informal employment, conditional on the prevalence of microenterprises.
Journal: Applied Economics
Pages: 4176-4190
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591597
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591597
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Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4176-4190
Template-Type: ReDIF-Article 1.0
Author-Name: Heather M. O’Neill
Author-X-Name-First: Heather M.
Author-X-Name-Last: O’Neill
Author-Name: Scott Deacle
Author-X-Name-First: Scott
Author-X-Name-Last: Deacle
Title: All out, all the time? Evidence of dynamic effort in major league baseball
Abstract:
This paper presents evidence that effort varies according to players’ positions in the contract cycle using 2007 through 2011 data on Major League Baseball (MLB) non-pitchers eligible for free agency. While controlling for time-invariant player traits, fixed-effect regression modelling produces evidence that MLB players exhibit contract-year increases in adjusted on-base-plus-slugging percentage (OPS+) in the final years of contracts and declines in OPS+ in the initial years of long-term contracts. The estimated contract-year boost is driven disproportionately by the best offensive performances, while estimated shirking effects are concentrated among the weakest. The results are not driven by the hitting performance of defensive specialists, nor do the results change when the econometric model accounts for players who change teams. OPS+ offers advantages over some other offensive statistics (such as RBI) because it depends less on teammate performance and adjusts for differences among home ball parks and the American and National Leagues.
Journal: Applied Economics
Pages: 4191-4202
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591598
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591598
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Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4191-4202
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Khan
Author-X-Name-First: Muhammad
Author-X-Name-Last: Khan
Author-Name: Jude Eggoh
Author-X-Name-First: Jude
Author-X-Name-Last: Eggoh
Title: Sectoral variability and the foundations of optimal inflation rate
Abstract:
The recent monetary search models argue that the real effects of inflation on economic activity can be gauged through relative price variability (RPV). Our study uses a large panel data of 32 developed and emerging European economies to test the relationship between inflation and RPV. We use a panel threshold model to explore the regime-specific effects of inflation on RPV. Our results confirm a non-linear profile of the relationship between inflation and RPV. Consistent with the monetary search models, our results show that the effects of inflation on the RPV are more significant in its low (below 0.792% per annum) and high (beyond 2.064% per annum) regimes. Finally, we also report a strong moderating role of central bank independence (CBI) in the inflation–RPV relationship.
Journal: Applied Economics
Pages: 4203-4217
Issue: 38
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591599
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591599
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Handle: RePEc:taf:applec:v:51:y:2019:i:38:p:4203-4217
Template-Type: ReDIF-Article 1.0
Author-Name: Suryanarayan Mohapatra
Author-X-Name-First: Suryanarayan
Author-X-Name-Last: Mohapatra
Author-Name: Sangram Keshari Jena
Author-X-Name-First: Sangram Keshari
Author-X-Name-Last: Jena
Author-Name: Amarnath Mitra
Author-X-Name-First: Amarnath
Author-X-Name-Last: Mitra
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Title: Intellectual capital and firm performance: evidence from Indian banking sector
Abstract:
In the aftermath of the 2008 financial crisis, the entire Indian banking industry was paralysed and their performance was shattered by the unfolding of enormous cases of Non-performing Assets (NPA). The study estimates the operating efficiency of 40 Indian banks for 5 years (2011–15) as a proxy of performance measure using the output-oriented DEA-BCC model. We find that nearly 62% of the state-owned banks and 47% of the private banks are inefficient indicating that the inefficient banks need to reduce their inputs or improve their output to become efficient. The study further investigates the relationship between intellectual capital (IC) and bank performance using a truncated regression model. The regression results show that out of the three components of intellectual capital, only human capital efficiency is positively and significantly associated with operational efficiency while structural capital and finance capital have a negative impact on the efficiency of banks. The study concludes that to achieve competitive edge banks should invest in their human capital. The results are robust in the case of financial variables taken as a proxy for performance.
Journal: Applied Economics
Pages: 6054-6067
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645283
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645283
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Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6054-6067
Template-Type: ReDIF-Article 1.0
Author-Name: Huy Pham
Author-X-Name-First: Huy
Author-X-Name-Last: Pham
Author-Name: Van Nguyen
Author-X-Name-First: Van
Author-X-Name-Last: Nguyen
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Kashif Saleem
Author-X-Name-First: Kashif
Author-X-Name-Last: Saleem
Author-Name: Nisreen Moosa
Author-X-Name-First: Nisreen
Author-X-Name-Last: Moosa
Title: The effects of the Paris climate agreement on stock markets: evidence from the German stock market
Abstract:
We investigate the effects of the 2016 Paris Climate Agreement on the German stock market by considering the impact of 20 announcements pertaining to the Agreement on 17 industries. The event study methodology is used for this purpose, together with several robustness tests, such as the nonparametric rank test and non-parametric conditional distribution approach. The change in systematic risk following the announcements is captured by using various risk models. In general, we find that the Paris Climate Agreement is achieving its objectives in the short run. Our results show that the announcements affected polluting industries in terms of risk and return. Furthermore, we observe two distinct diamond risk structures when (1) Conference of the Parties (COP) 21 took place, and (2) the Agreement came into force.
Journal: Applied Economics
Pages: 6068-6075
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645284
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645284
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Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6068-6075
Template-Type: ReDIF-Article 1.0
Author-Name: Jamal Bouoiyour
Author-X-Name-First: Jamal
Author-X-Name-Last: Bouoiyour
Author-Name: Refk Selmi
Author-X-Name-First: Refk
Author-X-Name-Last: Selmi
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Safe havens in the face of Presidential election uncertainty: A comparison between Bitcoin, oil and precious metals
Abstract:
Even though the empirical literature on safe haven properties of different assets with respect to financial risks is increasing, their abilities to safeguard against political risks has not been the subject of large empirical investigations. This paper uses an Empirical Mode Decomposition-based approach to look into the time-varying role of different assets (in particular, oil, precious metals and Bitcoin) as a safe haven against U.S. stocks in times of heightened uncertainty surrounding the outcome of the 2016 U.S. presidential election. Our results suggest that oil can act as an effective safe haven against political risk exposure; but such property varies over time. The abilities of gold and silver to provide positive returns during downturns have been also documented in the medium-and the long-term. Bitcoin also serves as a safe haven against U.S. stock losses but in the short-term. These findings provide useful and relevant information to investors to help ensure better asset allocation in an uncertain environment.
Journal: Applied Economics
Pages: 6076-6088
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645289
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645289
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Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6076-6088
Template-Type: ReDIF-Article 1.0
Author-Name: Bing Zhang
Author-X-Name-First: Bing
Author-X-Name-Last: Zhang
Title: Individual investor’s limited attention and IPO performance
Abstract:
The paper models and verifies the spread and decay of investor’s attention before listing on the stock market by using the Baidu Index as a proxy for investor attention of the frequency of searches. We find that individual investor’s attention has a significant influence on the first-day IPO return. We empirically study the allocation of investor attention among several stocks and discover that the more stocks going public on the same day, the milder and more similar their performance tends to be. This paper is the first to research IPO performance and individual attention.
Journal: Applied Economics
Pages: 6089-6099
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1646404
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646404
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Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6089-6099
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Whyte
Author-X-Name-First: Stephen
Author-X-Name-Last: Whyte
Author-Name: Robert C. Brooks
Author-X-Name-First: Robert C.
Author-X-Name-Last: Brooks
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: Sexual economic theory & the human mating market
Abstract:
In this study, we apply economic principles to the heterosexual human mating market using data on the socio-demographics, biology, attractiveness, sexual behaviour, and reproductive history of 3,261 Australian online dating participants. More specifically, by using survey participants attractiveness ratings as a proxy for market value, we are able to quantitatively explore theories of sexual economics (SET), which conceptualizes sexual access as an economic resource supplied by women in the human mating market. Our study tests this theory further by incorporating heterosexual market substitutes (namely, 953 bisexual and pansexual individuals) to more accurately integrate the relevant supply and demand forces impacting market value and the commodity of sexual access. We find not only that bisexual and pansexual women (but not men) enjoy a market premium (7.3% higher; p < 0.001) relative to their heterosexual counterparts, but that, contrary to SET, women’s market value in our sample does not diminish with age. We further find that in line with theory and evidence from evolutionary studies, men with (proxied) resources realize a higher market value (6.1% higher for every increased level of educational attainment; p < 0.001) than those without. In conclusion, SET is just one possible model that seeks to understand the complex multi-dimensionality of modern human sexuality and reproduction through an economics lens. As the internet and online dating now provide a low-cost conduit for human mating market participants, so to can it facilitate further large sample scientific studies of mating market dynamics such as this.
Journal: Applied Economics
Pages: 6100-6112
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1650886
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1650886
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Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6100-6112
Template-Type: ReDIF-Article 1.0
Author-Name: Ling Wang
Author-X-Name-First: Ling
Author-X-Name-Last: Wang
Author-Name: Jianqing Ruan
Author-X-Name-First: Jianqing
Author-X-Name-Last: Ruan
Title: Dialect, transaction cost and intra-national trade: evidence from China
Abstract:
Growing evidence emphasizes the important role of network effects on bilateral trade. This paper proposes a new factor – dialect difference, which decreases social network across regions, may increase transaction costs and thus shape interregional trade pattern. Taking China as an example, we use a gravity model considering network effects and provincial data from 1997 to 2009 to examine the effect of dialect difference on intra-national trade. We find that dialect difference has a significantly negative effect on interprovincial trade. Moreover, this paper explores the time dimension of the effect of dialect difference. We find that the negative effects of dialect difference on trade have been diminishing over time. Migration and the promotion of Mandarin have increased interregional cultural connections and thus mitigated the negative effects of dialect difference.
Journal: Applied Economics
Pages: 6113-6126
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1657557
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1657557
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Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6113-6126
Template-Type: ReDIF-Article 1.0
Author-Name: Fabiano Compagnucci
Author-X-Name-First: Fabiano
Author-X-Name-Last: Compagnucci
Author-Name: Andrea Gentili
Author-X-Name-First: Andrea
Author-X-Name-Last: Gentili
Author-Name: Enzo Valentini
Author-X-Name-First: Enzo
Author-X-Name-Last: Valentini
Author-Name: Mauro Gallegati
Author-X-Name-First: Mauro
Author-X-Name-Last: Gallegati
Title: Robotization and labour dislocation in the manufacturing sectors of OECD countries: a panel VAR approach
Abstract:
Robots are the most important innovation which has affected the production process in the last three decades. Thanks to the latest advances in technology, they have been able to perform an ever-increasing number of tasks, eventually replacing human work within the whole production process. However, because of the scarcity of suitable data, the extent of this potentially disrupting process is not fully assessed. This paper makes up for the lack of empirical evidence on the effect of robotization on labour dislocation using data collected by the International Federation of Robotics (IFR) on the number of robots installed in the different manufacturing industries of 16 OECD countries over the period 2011–2016. We show that at the industry level a 1% growth in the number of robots reduces the growth rate of worked hours by 0.16, as well as the selling prices and the real values of the compensations of employees. Moreover, we show that a given sector is more likely to be robotized when it is expanding both in terms of relative prices and employee compensations. We conclude that, at least in the selected countries, the introduction of robots plays a key role in slowing down human labour and compensation growth.
Journal: Applied Economics
Pages: 6127-6138
Issue: 57
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1659499
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659499
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Handle: RePEc:taf:applec:v:51:y:2019:i:57:p:6127-6138
Template-Type: ReDIF-Article 1.0
Author-Name: Yimin Zhou
Author-X-Name-First: Yimin
Author-X-Name-Last: Zhou
Author-Name: Rui Chen
Author-X-Name-First: Rui
Author-X-Name-Last: Chen
Title: Rational expectations, difference of opinions and asset pricing
Abstract:
This article applies the concept of relative overconfidence (the measure of how heavily investors depend on others’ information) to combine the rational expectations equilibrium (REE) and difference of opinions (DO) models. And we discuss the effects of relative overconfidence on asset price efficiency and trading volume. We find that when investors hold assets to maturity, relative overconfidence has no effect on price efficiency and trading volume; however, when investors speculate, relative overconfidence reduces price informativeness and trading volume, because investors will reckon asset prices as more noisy and find it meaningless to speculate on capital gains based on their private information. Our results highlight the role of speculation in differentiating REE and DO models and influencing the effects of overconfidence.
Journal: Applied Economics
Pages: 3331-3337
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420892
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420892
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Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3331-3337
Template-Type: ReDIF-Article 1.0
Author-Name: Shawn W. Ulrick
Author-X-Name-First: Shawn W.
Author-X-Name-Last: Ulrick
Author-Name: Kevin P. Mongeon
Author-X-Name-First: Kevin P.
Author-X-Name-Last: Mongeon
Author-Name: Michael P. Giannetto
Author-X-Name-First: Michael P.
Author-X-Name-Last: Giannetto
Title: A continuous income-based grade gap decomposition on university course grades
Abstract:
The earnings premium for education, and higher education in particular, is well documented. This article examines the college achievement gap between students coming from positions of high and low socio-economic status. Other papers have also looked at this issue, often by employing, at least in part, an Oaxaca decomposition. Past papers artificially divided socio-economic status into binary groups of high and low, in order to employ the decomposition. Socio-economic status is innately a continuous variable. Therefore, we implement a continuous version of the Oaxaca decomposition. Higher socio-economic students are both slightly better prepared in terms of observable characteristics and have better returns to their characteristics than lower socio-economic students. Notable differences across results obtained from the binary and continuous decomposition methods are discussed.
Journal: Applied Economics
Pages: 3388-3404
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420893
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420893
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Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3388-3404
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Bartolucci
Author-X-Name-First: Francesco
Author-X-Name-Last: Bartolucci
Author-Name: Misbah T. Choudhry
Author-X-Name-First: Misbah T.
Author-X-Name-Last: Choudhry
Author-Name: Enrico Marelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Marelli
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: GDP dynamics and unemployment changes in developed and developing countries
Abstract:
We design a new specification of Okun’s model that takes the following features into account: estimation of the relation in first differences, the possible lagged effect of GDP dynamics on unemployment changes, the persistence of unemployment rate dynamics, the possible different values of Okun coefficients under recession (with respect to periods of increases in GDP), the existence of cross-country institutional and structural differences (i.e. country-specific Okun coefficients), the additional effect on unemployment caused by large adverse shocks such as financial crises.A distinctive feature of this article is its consideration of a large set of countries for which we find differentiated Okun coefficients. Moreover, we focus in particular on the distinction between developed and developing countries, and on the additional impact of financial crises. From an econometric point of view, the model developed belongs in the family of linear mixed-effects models. The estimation method uses an expectation-maximization (EM) algorithm. Our results confirm the general validity of ‘Okun’s law’; they show the Okun coefficient differences between high- and low-income countries; and they evidence an additional impact of some types of financial crisis on the unemployment dynamics of developed economies.
Journal: Applied Economics
Pages: 3338-3356
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420894
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420894
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Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3338-3356
Template-Type: ReDIF-Article 1.0
Author-Name: Martina Hedvicakova
Author-X-Name-First: Martina
Author-X-Name-Last: Hedvicakova
Title: Unemployment and effects of the first work experience of university graduates on their idea of a job
Abstract:
The financial and subsequent economic crisis caused a sharp deterioration in labour market conditions which particularly affected the youth group. Southern nations were affected the most, while e.g. Germany, Austria and the Czech Republic were less affected. 42.3% of university graduates are registered in the Czech Republic Labour Office for longer than 5 months. This article aims to analyse youth unemployment in the European Union (EU) with an emphasis on the Czech Republic, which is below the EU-28 average. Based on the questionnaire survey, employment of university graduates in the labour market was analysed and the following hypothesis was tested: With a change in the status of a future graduate to an employed graduate, their willingness to retreat from their demands to find the required job, changes’. The result of the survey discovered that after finding the first job, there is reduction in graduates’ demands on a job.
Journal: Applied Economics
Pages: 3357-3363
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420895
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420895
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Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3357-3363
Template-Type: ReDIF-Article 1.0
Author-Name: Bethany Cooper
Author-X-Name-First: Bethany
Author-X-Name-Last: Cooper
Author-Name: Michael Burton
Author-X-Name-First: Michael
Author-X-Name-Last: Burton
Author-Name: Lin Crase
Author-X-Name-First: Lin
Author-X-Name-Last: Crase
Title: Valuing improvements in urban water security: evidence of heterogeneity derived from a latent class model for eastern Australia
Abstract:
In many Australian cities the response to drought has included the imposition of mandatory constraints over how water is used by households, often termed ‘water restrictions’. A similar rationing approach has been witnessed in California’s recent drought. The aim of water restrictions is to slow the depletion of water storage but restrictions have also been criticized for the costs they impose on specific water users. In order to gain insight into the potential magnitude of the cost of water restrictions, this study uses a choice experiment to investigate the non-market values for specific attributes associated with the outcomes of drought restrictions. This information was sought to understand the community’s willingness to pay for attributes related to the extent, frequency and duration of water restrictions. The article reports a latent class choice model for a major city in eastern Australia and investigates heterogeneity in preferences towards increasing water availability during drought. This study departs from the existing literature by conducting the choice experiment in a context where water supply is relatively abundant. This unique framing of the choice experiment allows for a useful comparison with existing studies and also raises challenges about the interpretation of the data for planning purposes.
Journal: Applied Economics
Pages: 3364-3375
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420896
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420896
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Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3364-3375
Template-Type: ReDIF-Article 1.0
Author-Name: Patty Duijm
Author-X-Name-First: Patty
Author-X-Name-Last: Duijm
Author-Name: Sophie Steins Bisschop
Author-X-Name-First: Sophie
Author-X-Name-Last: Steins Bisschop
Title: Short-termism of long-term investors? The investment behaviour of Dutch insurance companies and pension funds
Abstract:
Countercyclical investment strategies of large institutional investors such as insurance companies and pension funds can support financial stability, while procyclical investment behaviour is considered as destabilizing at a macro level. Yet, there is limited understanding of how insurance companies and pension funds invest during market shocks, such as the global financial crisis. Investigating the equity and fixed income portfolios of Dutch non-life insurers, life insurers and pension funds, we find evidence for procyclical behaviour by insurance companies (both life and non-life). For pension funds, we find evidence for countercyclical behaviour during market upturns.
Journal: Applied Economics
Pages: 3376-3387
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420898
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420898
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Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3376-3387
Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: Does financialization retard growth? Time series and cross-sectional evidence
Abstract:
Although financial development is essential for economic development, excessive financialization of the economy is believed to exert a negative effect on output growth. In this article, empirical evidence is presented on the relation between economic growth and financialization as measured by the ratio of credit to GDP and the ratio of publicly traded shares to GDP. The empirical results are based on annual time series data for six country groups as well as cross-sectional data covering a large number of countries. The model is initially specified with unobserved components and estimated in a time-varying parametric framework to account for missing variables. Thereafter, the issue of linear versus quadratic specifications is examined. The results are robust with respect to model specification, estimation method, data type and variable definition, showing in general that financialization has a negative impact on growth. Some evidence is also presented to support the notion of the financial Kuznets curve.
Journal: Applied Economics
Pages: 3405-3415
Issue: 31
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2017.1420899
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420899
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Handle: RePEc:taf:applec:v:50:y:2018:i:31:p:3405-3415
Template-Type: ReDIF-Article 1.0
Author-Name: Kagiso Mangadi
Author-X-Name-First: Kagiso
Author-X-Name-Last: Mangadi
Author-Name: Jeffrey Sheen
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Sheen
Title: Identifying terms of trade shocks in a developing country using a sign restrictions approach
Abstract:
Using annual data for Botswana from 1960 to 2012, we examine the responses of macroeconomic variables to four generalized positive terms of trade shocks – global demand, globalizing, sector-specific and global supply. A sign-restricted structural vector autoregression model with a penalty function is estimated to identify the four possible shocks. While positive global demand and globalization shocks are both expansionary, they have opposite effects on inflation. A positive commodity market specific shock dampens real GDP growth and is inflationary, suggesting a possible Dutch disease response. A negative global supply shock suppresses both output growth and inflation. All but the last shock leads to a significant declining interest rate. Monetary policy contraction is recommended for the first shock and expansion for the others.
Journal: Applied Economics
Pages: 2298-2315
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237757
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237757
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Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2298-2315
Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Forecasting inflation in an inflation targeting economy: structural versus nonstructural models
Abstract:
We propose a comparison between atheoretical and theoretical models in forecasting the inflation rate for an inflation-targeting country such as South Africa. In a pseudo real-time environment, our results show that for shorter horizons, the atheoretical error correction models, with and without factors, perform better; while for longer horizons, theoretical (Dynamic Stochastic General Equilibrium-based) models outperform their competitors.
Journal: Applied Economics
Pages: 2316-2321
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237760
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237760
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Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2316-2321
Template-Type: ReDIF-Article 1.0
Author-Name: Jizhou Lu
Author-X-Name-First: Jizhou
Author-X-Name-Last: Lu
Author-Name: Gengzhong Feng
Author-X-Name-First: Gengzhong
Author-X-Name-Last: Feng
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Author-Name: Nengmin Wang
Author-X-Name-First: Nengmin
Author-X-Name-Last: Wang
Title: The bullwhip effect on inventory: a perspective on information quality
Abstract:
In recent years, there has been a vast increase in the quantity of information shared across supply chain. We investigate how the timeliness and accuracy of information quality affect the value of information sharing. We use the inventory bullwhip effect (BWE) to measure the value of information sharing in a two-level supply chain consisting of one retailer and one manufacturer. The retailer faces a price-sensitive demand and the price is an AR (1) process. Our study shows if customer demand and retailer’s immediate order are delayed, using retailer’s historical order quantity to forecast can decrease manufacturer’s BWE. If information errors happen, during delivery and utilization, information sharing is not always valuable for the manufacturer. Sometimes, no information sharing can decrease much more of BWE. If information errors occur when the retailer collects demand information, value of information sharing is more significant than when there are no information errors.
Journal: Applied Economics
Pages: 2322-2338
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237762
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237762
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Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2322-2338
Template-Type: ReDIF-Article 1.0
Author-Name: John Dove
Author-X-Name-First: John
Author-X-Name-Last: Dove
Title: Local government type and municipal bond ratings: what’s the relationship?
Abstract:
There is an extensive literature analysing the executive branch within local U.S. government jurisdictions. This has largely revolved around the differences between elected mayors and appointed city managers. Much of the academic work has considered the potential efficiency gains that may be associated with either form of government and comparative analyses between the two. However, the empirical literature has been divided regarding the relative efficiency of either form. This article attempts to add to that literature by considering how bond markets may perceive potential efficiencies that emerge from one executive type over the other by evaluating bond ratings for a sample of large municipal governments in the United States. Overall, the results suggest that municipalities headed by a city manager are associated with increased bond ratings (and thus lower borrowing costs), which may lend support that this form of administration is, on some margin, relatively more efficient than others. These results are robust to a number of specifications.
Journal: Applied Economics
Pages: 2339-2351
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237763
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237763
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Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2339-2351
Template-Type: ReDIF-Article 1.0
Author-Name: Roman Horvath
Author-X-Name-First: Roman
Author-X-Name-Last: Horvath
Author-Name: Klara Voslarova
Author-X-Name-First: Klara
Author-X-Name-Last: Voslarova
Title: International spillovers of ECB’s unconventional monetary policy: the effect on Central Europe
Abstract:
We examine how unconventional monetary policy of the European Central Bank (ECB) influences macroeconomic stability in three Central European economies. We estimate various panel vector autoregressions (PVARs) using monthly data from 2008 to 2014. Using the shadow policy rate and central bank assets as measures of unconventional policies, we find that output growth and inflation in Central Europe temporarily increase following an expansionary unconventional monetary policy shock by the ECB. Using both impulse responses and variance decompositions, we find that the effect of unconventional policies on output growth is much stronger than the effect on inflation.
Journal: Applied Economics
Pages: 2352-2364
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237764
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237764
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Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2352-2364
Template-Type: ReDIF-Article 1.0
Author-Name: Xinhua Gu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Gu
Author-Name: Yang Zhang
Author-X-Name-First: Yang
Author-X-Name-Last: Zhang
Author-Name: Xiao Chang
Author-X-Name-First: Xiao
Author-X-Name-Last: Chang
Title: The role of financial systems for cross-country differences in the link between income and consumption inequality
Abstract:
This article discusses why consumption inequality stays low despite high income inequality in the U.S; but income inequality is closely followed by consumption inequality in China. We show that different financial systems can play a critical role in shaping the cross-country different links between income and consumption inequality. This phenomenon is consistent with the cross-country different relationships between income inequality and saving rates. Consumer credit expansion in the U.S. makes inequality much less serious for consumption than for income, and this result holds to an even larger extent if more domestic credit can be financed by foreign savings. But this is not the case in China, whose financial system focuses only on investment and trade while neglecting liquidity constraints on consumption. Our assertions accord well with evidence found from the U.S., China, and other related economies.
Journal: Applied Economics
Pages: 2365-2378
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240338
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240338
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Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2365-2378
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Philippe Boussemart
Author-X-Name-First: Jean-Philippe
Author-X-Name-Last: Boussemart
Author-Name: Hervé Leleu
Author-X-Name-First: Hervé
Author-X-Name-Last: Leleu
Author-Name: Edward Mensah
Author-X-Name-First: Edward
Author-X-Name-Last: Mensah
Title: Generation and distribution of the total factor productivity gains in US industries
Abstract:
This study estimates productivity gains and their distribution among inputs and outputs for 63 American industries over the period 1987–2012. Using the traditional surplus accounting method, the Total Factor Productivity (TFP) growth rates are divided into their price change components in order to determine the stakeholders who do or do not receive price advantages.An initial analysis showed that TFP of US industries increased at an average trend of 0.8% and established that remunerations to employees and firms’ profitability constituted 49% and 39%, respectively, of the accumulated economic surplus from the productivity gains. Suppliers of intermediate inputs retained 12.1% of the surplus. Finally, customers, equipment and structure providers were the losers in the distribution of economic surplus via, respectively, a significant growth of relative final demand prices and a substantial price decrease of these assets.A second step analysis underlined that industries with high TFP growth rates mainly benefited customers and firms via output price decreases and profitability improvements while industries with low or negative TFP changes hurt customers through significant output price increases. The sectoral level analysis also showed that employees’ remunerations depend only slightly on productivity gains produced within their industrial sectors.
Journal: Applied Economics
Pages: 2379-2393
Issue: 24
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240344
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240344
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Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2379-2393
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian A. Gehricke
Author-X-Name-First: Sebastian A.
Author-X-Name-Last: Gehricke
Author-Name: Jin E. Zhang
Author-X-Name-First: Jin E.
Author-X-Name-Last: Zhang
Title: The implied volatility smirk in the VXX options market
Abstract:
The VXX option market has grown in popularity alongside the VXX ETN market in activity and size of oustanding positions, yet there is no complete VXX option pricing model. This paper is the first to document and analyze the implied volatility (IV) curves of the VXX options market, by applying the methodology of Zhang and Xiang, providing a necessary benchmark for developing a VXX option pricing model. The IV curves of the VXX options market do not exhibit the typical smirk shape, as for S&P 500 options, but rather an upward-sloping almost linear curve.
Journal: Applied Economics
Pages: 769-788
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646402
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646402
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Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:769-788
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Bate
Author-X-Name-First: Roger
Author-X-Name-Last: Bate
Author-Name: Cody Kallen
Author-X-Name-First: Cody
Author-X-Name-Last: Kallen
Author-Name: Aparna Mathur
Author-X-Name-First: Aparna
Author-X-Name-Last: Mathur
Title: The perverse effect of sin taxes: the rise of illicit white cigarettes
Abstract:
In this paper, we define illicit white cigarettes as cigarettes that are legal in the country of production, but that are illegally smuggled into other markets without the payment of applicable taxes. This paper analyzes whether taxes create a price wedge between legal and illicit cigarettes and thereby affect the availability and trade of illicit whites across markets. Through original, self-conducted point-of-sale surveys and discarded pack collections across 18 cities, we find that cigarette taxes significantly affect the market for illicit whites. Moreover, based on a smoker survey, we find that the illicit white market is supported by consumers’ willing to purchase illicit products for their reduced prices. It is beyond the scope of this paper to ascertain the optimal tax rates on cigarettes or the stringency of enforcement measures to reduce smoking rates (the desired health outcome). However, gaining a better understanding of the effects of taxes on illicit white trade and consumption is vital because our research suggests that current ‘sin taxes’ drive illicit activity and therefore reduce the effectiveness of higher taxes in curbing the use of cigarettes.
Journal: Applied Economics
Pages: 789-805
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646403
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646403
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Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:789-805
Template-Type: ReDIF-Article 1.0
Author-Name: Houcem Smaoui
Author-X-Name-First: Houcem
Author-X-Name-Last: Smaoui
Author-Name: Karim Mimouni
Author-X-Name-First: Karim
Author-X-Name-Last: Mimouni
Author-Name: Akram Temimi
Author-X-Name-First: Akram
Author-X-Name-Last: Temimi
Title: The impact of Sukuk on the insolvency risk of conventional and Islamic banks
Abstract:
This paper investigates the impact of Sukuk market development on bank insolvency risk using a sample comprising 72 Islamic banks (IBs) and 145 conventional banks (CBs) spanning 15 countries over the 2003–2014 period. We measure bank insolvency risk using the z-score. Using the system-GMM estimator, we find that Sukuk market development adversely affects the insolvency risk of IBs, while that of the CBs remains unchanged. Moreover, our results point to a negative and significant effect of the size on the insolvency risk of both CBs and IBs, thus confirming the well-documented Too-Big-To-Fail hypothesis. This effect is more pronounced for IBs indicating that large IBs exhibit higher insolvency risk than their conventional counterparts. Finally, we show that the 2008 global financial crisis has exacerbated the negative effect of Sukuk market development on bank insolvency risk, as expected.
Journal: Applied Economics
Pages: 806-824
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646406
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646406
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Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:806-824
Template-Type: ReDIF-Article 1.0
Author-Name: Sheen Liu
Author-X-Name-First: Sheen
Author-X-Name-Last: Liu
Author-Name: Howard Qi
Author-X-Name-First: Howard
Author-X-Name-Last: Qi
Author-Name: Yan Alice Xie
Author-X-Name-First: Yan Alice
Author-X-Name-Last: Xie
Title: Executive compensation and capital structure
Abstract:
We examine the relation between capital structure decision and the incentive power of executive compensation that contains both cash and equity components. Our analytical model shows that executive compensation motivates CEOs to pursue more aggressive capital structure policy. However, as firm leverage reaches a certain level, further incentive from compensation cannot motivate CEOs to borrow more. Our findings thus provide an explanation to the mixed evidence of the relation documented in the literature by showing that the relation also depends on the level of firm leverage. Our empirical analysis confirms the predictions of our model that executive compensation provides strong incentive for CEOs to choose high firm leverage. However, firms with high leverage tend to offer CEO compensation with lower incentive power. Subperiod analysis shows that the magnitude of the relation changes with time, while the nature of the relation still holds over the subsample periods. Also, the relation changes with the level of leverage. It is positive when firm leverage is high, but it becomes negative when firm leverage is low.
Journal: Applied Economics
Pages: 825-838
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659927
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659927
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Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:825-838
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Antonio Lucena Aiube
Author-X-Name-First: Fernando Antonio Lucena
Author-X-Name-Last: Aiube
Title: On the Brazilian fuel pricing policy: a Gaussian factor model approach
Abstract:
In this paper we investigate the oil spot price dynamics and volatility in Brazilian Reais (the local currency). The current policy on price adjustments of refined products caused enormous turmoil in May 2018 due to a trucking strike over high diesel prices. The current price adjustments follow variations of oil prices and exchange rate. This issue opens a discussion of the price transfers of imported oil products. The classic volatility analysis is difficult to carry out because price series in local currency are based on data with non-homogeneous frequency. We use a Gaussian factor model to estimate the oil spot price and then follow two different theoretical approaches to infer the dynamics and volatility in local currency. From these approaches, one can infer how high the volatility is compared to the first future contract taken as a benchmark. Furthermore, one can also monitor the short-term price forecasts once the conditional distribution is known from the dynamics established. This analysis can be applied to any type of refined product depending on the existence of a liquid term structure of future prices.
Journal: Applied Economics
Pages: 839-850
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659929
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659929
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Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:839-850
Template-Type: ReDIF-Article 1.0
Author-Name: Stelios Bekiros
Author-X-Name-First: Stelios
Author-X-Name-Last: Bekiros
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Author-Name: Chaker Aloui
Author-X-Name-First: Chaker
Author-X-Name-Last: Aloui
Title: Spillovers across European sovereign credit markets and role of surprise and uncertainty
Abstract:
We identify the network structure of spillovers and time-varying spillover intensities across European sovereign credit markets proposing a novel Copula-Granger causality based structural vector auto-regressive (SVAR) approach. Via the proposed framework, we examine the topological and time-varying spillover and contagion between 13 European credit markets, which is found to be consistent with crisis events. The heterogeneity in directional impacts could be useful in revealing contagion effects across the credit markets. We also find that newly proposed surprise and uncertainty indexes, among other macro-economic variables, significantly explain the spillover dynamics.
Journal: Applied Economics
Pages: 851-865
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659930
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659930
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Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:851-865
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Kris Ivanovski
Author-X-Name-First: Kris
Author-X-Name-Last: Ivanovski
Title: Electricity consumption and economic growth across Australian states and territories
Abstract:
This study investigates the long-run and short-run dynamics between electricity consumption (along with traditional inputs such as labour and capital) on economic output for a panel of seven Australian states/territories over the period 1990 to 2015. Our panel results suggest that electricity consumption is positively related to gross state product in both the long-run and short-run, and the growth effect also extend to traditional inputs such as capital and labour. However, the state/territory-specific results identify both positive and negative relationships between electricity consumption and gross state product. Furthermore, we find evidence of bi-directional causality between state economic growth and capital, labour and electricity consumption, highlighting the importance of traditional inputs as well as electricity consumption in the growth process.
Journal: Applied Economics
Pages: 866-878
Issue: 8
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1659932
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1659932
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Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:866-878
Template-Type: ReDIF-Article 1.0
Author-Name: Gyanendra Singh Sisodia
Author-X-Name-First: Gyanendra Singh
Author-X-Name-Last: Sisodia
Author-Name: Isabel Soares
Author-X-Name-First: Isabel
Author-X-Name-Last: Soares
Author-Name: Paula Ferreira
Author-X-Name-First: Paula
Author-X-Name-Last: Ferreira
Title: The effect of sample size on European Union’s renewable energy investment drivers
Abstract:
Macroeconomic modelling results based on relatively varying sample sizes may lead to incoherent results. Such effects have not been adequately understood in the renewable energy literature regarding the European Union (EU). This study focuses on the comparison of results obtained for renewable energy investment drivers (for solar and wind energy investments) on different samples of EU countries, including all EU-27, former EU-15 and 11 high renewable investment EU countries. The study used a random effect panel data modelling approach over the period 1995–2011 for studying the impact of the levelized cost, regulation perception, carbon emissions and climatic condition on wind and solar investments over the three samples. The results demonstrate the importance of trustable regulation schemes to ensure that regulation will not have a significant negative effect on investment, showing also the need to further extend the model to include support schemes as fundamental drivers for investment.
Journal: Applied Economics
Pages: 5129-5137
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173176
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173176
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Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5129-5137
Template-Type: ReDIF-Article 1.0
Author-Name: Faisal Mehmood Mirza
Author-X-Name-First: Faisal Mehmood
Author-X-Name-Last: Mirza
Author-Name: Olvar Bergland
Author-X-Name-First: Olvar
Author-X-Name-Last: Bergland
Author-Name: Isma Khatoon
Author-X-Name-First: Isma
Author-X-Name-Last: Khatoon
Title: Measuring the degree of competition in Pakistan’s banking industry: an empirical analysis
Abstract:
Pakistan’s banking industry has gone through significant transformation from being in a heavily state regulated and controlled environment to a more liberalized market structure in recent years. This liberalization of banking industry in Pakistan has raised concerns over the dominant banks’ exercise of market power on account of increase in market concentration due to mergers and acquisitions, high profitability in banking sector and increasing interest rate spread. Present study therefore explicitly tests the market conduct of banks using quarterly panel data of 30 banks from 2004 to 2012 and employing Panzar–Rosse, Bresnahan–Lau, Hall–Roeger and Boone’s approaches to study market power. Our findings suggest that Pakistan’s banking industry is working in a competitive environment and we find little evidence for the exercise of market power by the dominant banks. Our results remain robust across all these approaches to measure market power. These findings indicate that the liberalization and deregulation of Pakistan’s banking industry has been successful in improving the competitive conditions in the market.
Journal: Applied Economics
Pages: 5138-5151
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173177
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173177
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Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5138-5151
Template-Type: ReDIF-Article 1.0
Author-Name: Jürgen Bitzer
Author-X-Name-First: Jürgen
Author-X-Name-Last: Bitzer
Author-Name: Erkan Gören
Author-X-Name-First: Erkan
Author-X-Name-Last: Gören
Title: Measuring capital services by energy use: an empirical comparative study
Abstract:
From an engineering perspective, the service that a capital good provides is energy conversion – that is, the physical ‘work’ done by a machine. A capital good’s service can thus be measured directly by the energy consumed in production. We show important empirical advantages of this approximation over traditional measures. The empirical application reveals that this approach avoids a number of conceptual problems of the latter. Furthermore, this measure captures the utilization of the capital stock more accurately as it is more sensitive to fluctuations in economic activity. With a growth accounting exercise, it is shown that the differences between the new and the traditional measures are important for empirical work. Using the new measure yields significantly different results. Especially in times of global recession it provides higher and more feasible total factor productivity growth rates.
Journal: Applied Economics
Pages: 5152-5167
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173178
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173178
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Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5152-5167
Template-Type: ReDIF-Article 1.0
Author-Name: Shailesh Rana
Author-X-Name-First: Shailesh
Author-X-Name-Last: Rana
Author-Name: G. Michael Phillips
Author-X-Name-First: G. Michael
Author-X-Name-Last: Phillips
Title: Are U.S. growth and value stocks similarly integrated with the world markets? A test across business cycles
Abstract:
Utilizing the bivariate GARCH-in-mean methodology, this study examines the strength of global risk premia using 10 major foreign stock markets with two style-based, large-cap U.S. index funds and S&P500, for the period 1993–2014. We incorporated seven U.S. business cycles. The foreign risk premium was found to be significantly strong for both growth and value stocks, and the S&P500 index, indicating that U.S. integration within global market is strong and persistent over the past 20 years. We report distinct risk characteristics owing to global linkages, for the two style-based U.S. funds over different business cycles. The foreign risk premium for growth stocks is mostly positive and especially high during contractions; in contrast, the value stocks demand more premiums during expansions. The growth and value linkages with foreign countries also vary quite substantially over the business cycles. A possible sign of convergence is the decreasing difference between value and growth foreign risk premiums, post-2001, perhaps indicative of greater domestic and global market integration. Our results support a solid, continuing trend of U.S. integration within global markets, with an influential role of business cycles.
Journal: Applied Economics
Pages: 5168-5185
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173179
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173179
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Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5168-5185
Template-Type: ReDIF-Article 1.0
Author-Name: Qin Fan
Author-X-Name-First: Qin
Author-X-Name-Last: Fan
Author-Name: Stephan J. Goetz
Author-X-Name-First: Stephan J.
Author-X-Name-Last: Goetz
Author-Name: Jiaochen Liang
Author-X-Name-First: Jiaochen
Author-X-Name-Last: Liang
Title: The interactive effects of human capital and quality of life on economic growth
Abstract:
To bridge the gap in the quality of life (QOL) and economic growth literature and understand the reinforcing effects of QOL and human capital on economic development, we examine the interactive effects of these two factors on wage growth from 2000 to 2007 at the county level across the United States. First, a Rosen–Roback model is employed to estimate implicit values of amenities including climate, clean air and other natural attributes, which are used to generate QOL indices. Second, QOL, human capital represented by the share of college graduates, and their interaction serve as key variables in the wage growth model. An instrumental variable approach and location fixed effects are used to address endogeneity of human capital and control for location-specific unobservable characteristics. Results suggest that human capital and QOL significantly contribute to economic growth and the growth effects are even larger in nonmetropolitan counties. Importantly, we find that the effect of human capital on growth is larger in high-QOL counties and QOL enhances the effect of human capital on growth. Our results provide empirical support for community development strategies through providing utility-enhancing amenities that improve QOL and retain human capital.
Journal: Applied Economics
Pages: 5186-5200
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173180
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173180
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Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5186-5200
Template-Type: ReDIF-Article 1.0
Author-Name: Enlinson Mattos
Author-X-Name-First: Enlinson
Author-X-Name-Last: Mattos
Author-Name: Rafael Terra
Author-X-Name-First: Rafael
Author-X-Name-Last: Terra
Title: Nature of transfers, income tax function and empirical estimation of elasticity of taxable income for Brazil
Abstract:
This article aims to estimate the elasticity of taxable income (ETI), taking into account the nature of transfers and their use as a redistribution package (involving cash and in-kind transfers) to households in Brazil. Our contributions are twofold. First, we provide a simple model with balanced-budget government that reveals the role played by cash and in-kind transfers on the labour supply (and income tax revenues thereof). Next, in order to estimate ETI in the presence of cash and in-kind transfers, Brazilian population surveys (Pesquisa Nacional por Amostra de Domicílios [PNAD]) are used to explore a limited tax reform that was implemented between 1997 and 1998. This reform only affected the higher income tax bracket. Our findings suggest that in-kind (cash) transfers are positively (negatively) associated with reported taxable income and precise estimation of ETI requires estimates of both types of transfers. Last, we estimate the ETI for Brazil in the range from 0.4 to 1.3 not different from those that maximize income tax revenues.
Journal: Applied Economics
Pages: 5201-5220
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173181
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173181
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Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5201-5220
Template-Type: ReDIF-Article 1.0
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Author-Name: W. Robert J. Alexander
Author-X-Name-First: W. Robert J.
Author-X-Name-Last: Alexander
Title: Pollution, energy use, GDP and trade: estimating the long-run relationship for Vietnam
Abstract:
Since the beginning of economic reform in the 1980s and, in particular, with its openness to international trade accelerating since the 1990s, the Vietnamese economy has registered significant growth. At the same time, energy consumption and the level of pollution in Vietnam has also increased. This article aims to focus on the link between openness to trade and pollution in Vietnam. Due to lack of data, very few existing studies have focused on Vietnam. Using annual data from1980 to 2011 and employing the bounds testing approach to cointegration, based on an autoregressive distributed lagged (ARDL) model, we find that there is a statistically significant long-run relationship amongst pollution, openness to trade, energy consumption and real national income in Vietnam. This conclusion continues to hold when the possibility of a structural break in the relationship is allowed for using the Gregory-Hansen approach to cointegration. Analysis of the cointegration relationship suggests that, in response to any exogenous shock to the system, adjustment back to the long-run equilibrium is very fast.
Journal: Applied Economics
Pages: 5221-5232
Issue: 53
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173182
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173182
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Handle: RePEc:taf:applec:v:48:y:2016:i:53:p:5221-5232
Template-Type: ReDIF-Article 1.0
Author-Name: El Mamoun Amrouk
Author-X-Name-First: El Mamoun
Author-X-Name-Last: Amrouk
Author-Name: Stephanie-Carolin Grosche
Author-X-Name-First: Stephanie-Carolin
Author-X-Name-Last: Grosche
Author-Name: Thomas Heckelei
Author-X-Name-First: Thomas
Author-X-Name-Last: Heckelei
Title: Interdependence between cash crop and staple food international prices across periods of varying financial market stress
Abstract:
This paper investigates the price dynamics between a selection of international staple food and cash crop futures prices. This price interaction is particularly relevant for developing countries that rely on cash crop export earnings to finance their staple food import requirements. We employ a multivariate Copula-DCC-GARCH model to characterize the cash crop and staple food price interaction over time and a rolling-sample volatility index to identify the direction of the volatility spillover for staple-cash commodity pairs. Results show that the intensity of interaction varies considerably over the sample time, but is, generally positive, and stronger during the period 2007–2012 associated with high commodity prices and financial market stress.
Journal: Applied Economics
Pages: 345-360
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645281
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645281
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Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:345-360
Template-Type: ReDIF-Article 1.0
Author-Name: Abdelaziz Chazi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Chazi
Author-Name: Ali Mirzaei
Author-X-Name-First: Ali
Author-X-Name-Last: Mirzaei
Author-Name: Zaher Zantout
Author-X-Name-First: Zaher
Author-X-Name-Last: Zantout
Author-Name: Asm Sohel Azad
Author-X-Name-First: Asm Sohel
Author-X-Name-Last: Azad
Title: Does the size of Islamic banking matter for industry growth: international evidence
Abstract:
Islamic banking, which has witnessed unprecedented growth in the last quarter of the century is hypothesized to be able to contribute to the development of the financial sector and thus to economic growth through tools inherent to this faith-based model of banking. We test the hypothesis that a higher relative presence of Islamic banking is beneficial to the growth of external finance dependent industries. Using data for 28 industries in 14 countries with dual banking systems, we find that the absolute and relative size of Islamic banking do have a positive impact on industry growth. The results are robust to controlling for the quality of finance as well as for the degree of competition in the banking industry.
Journal: Applied Economics
Pages: 361-374
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645288
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645288
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Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:361-374
Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Koomson
Author-X-Name-First: Isaac
Author-X-Name-Last: Koomson
Author-Name: Renato A. Villano
Author-X-Name-First: Renato A.
Author-X-Name-Last: Villano
Author-Name: David Hadley
Author-X-Name-First: David
Author-X-Name-Last: Hadley
Title: Intensifying financial inclusion through the provision of financial literacy training: a gendered perspective
Abstract:
This study examines the impact of financial literacy training on financial inclusion and its intensity using data collected from a randomised control trial. An additive index of financial inclusion is generated from four financial inclusion indicators. After testing for baseline balance and estimating impact, our findings show that beneficiaries of financial literacy training are about 7.2 percentage points more likely to own an account while they are 8.2 percentage points more likely to save. Overall, beneficiaries of financial literacy training had a 9.5 percentage points advantage in receiving financial assistance than their non-beneficiary counterparts. While financial literacy training only showed a significant impact on account ownership for female-beneficiary households, male-beneficiary households also only experienced an impact in their savings behaviour and receipt of financial assistance. Moreover, beneficiaries of financial literacy training are more likely to intensify their financial inclusion and the intensity of inclusion is higher for male and young beneficiary households. The results highlight the need to strengthen financial literacy training in order to close the gender financial inclusion gap.
Journal: Applied Economics
Pages: 375-387
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645943
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645943
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Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:375-387
Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Hao Lee
Author-X-Name-First: Chia-Hao
Author-X-Name-Last: Lee
Author-Name: Pei-I Chou
Author-X-Name-First: Pei-I
Author-X-Name-Last: Chou
Title: Industry competition, earnings management and leader–follower effects
Abstract:
This article examines the impacts of industry competition on the leader-follower effects in different earnings management activities. The empirical results show that there are the leader-follower effects in the accrual-based earnings management in industries with different extents of competition, while there is the leader-follower effect in the real earnings management activities in industries with lower degrees of industry competition. The evidence implies that the industry competition affects the leader-follower effects in the different earnings management activities, and then the different extents of industry competition have different mediation effects on the leader-follower effect. We expect the empirical results not only fill the gap of literatures, but also provide a new insight for the investors and regulators in their investment decision and regulation revision.
Journal: Applied Economics
Pages: 388-399
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646393
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646393
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Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:388-399
Template-Type: ReDIF-Article 1.0
Author-Name: David J Hunt
Author-X-Name-First: David J
Author-X-Name-Last: Hunt
Author-Name: Charles R. Link
Author-X-Name-First: Charles R.
Author-X-Name-Last: Link
Title: Better outcomes at lower costs? The effect of public health expenditures on hospital efficiency
Abstract:
Local health departments play a critical role in the community they serve as they are the foundation of the U.S. public health system providing services such as immunizations to the less affluent and advocating for state smoking bans. Research indicates public health expenditures improve overall health of the population. Importantly, a healthier population may lead to efficiency gains for surrounding health care providers. We use a two-stage semi-parametric Data Envelopment Analysis to estimate the effects of public health spending on the technical efficiency of the surrounding hospitals. Our results indicate hospitals operating in an area with a high level of per capita public health expenditures experience gains in efficiency of approximately 1.67 percentage points relative to hospitals in low spending areas suggesting a $20 billion in annual savings due to increased hospital efficiency. We also found that the more traditional approaches using the biased estimate for technical efficiency yielded the same conclusions with less computational burdens.Abbreviation: WHO: World Health Organization; NACCHO: National Association of City and County Health Organization; DEA: Data Envelopment Analysis; CMS: Centers for Medicare and Medicaid Services; FTE: Full time equivalent; AHRF: Area Health Resource Files; MSA: Metropolitan Statistical Area; AHA: American Hospital Association
Journal: Applied Economics
Pages: 400-414
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646405
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646405
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Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:400-414
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Ayalew Ali
Author-X-Name-First: Daniel Ayalew
Author-X-Name-Last: Ali
Author-Name: Klaus Deininger
Author-X-Name-First: Klaus
Author-X-Name-Last: Deininger
Author-Name: Michael Wild
Author-X-Name-First: Michael
Author-X-Name-Last: Wild
Title: Using satellite imagery to create tax maps and enhance local revenue collection
Abstract:
Although taxes on land and property have many desirable attributes, the challenge of ensuring completeness of tax rolls and currency of valuations preclude their effective use to support urbanization and service provision in many developing countries. The example of Kigali shows how building footprints and heights generated from high-resolution satellite imagery, together with sales prices and routine statistical data, allow to assess and improve coverage and design of property tax systems. We show that only 40% of potential land lease fee revenue (of US$ 4.9 million) was collected and that moving to 1% value-based tax would increase revenue almost 10 times while being less regressive than the current system. While this could allow reducing the tax burden for low-income groups, exemptions should be applied with caution based on careful empirical analysis.
Journal: Applied Economics
Pages: 415-429
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646408
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646408
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Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:415-429
Template-Type: ReDIF-Article 1.0
Author-Name: John Moffat
Author-X-Name-First: John
Author-X-Name-Last: Moffat
Author-Name: Hong Il Yoo
Author-X-Name-First: Hong Il
Author-X-Name-Last: Yoo
Title: Religion, religiosity and educational attainment: evidence from the compulsory education system in England
Abstract:
This paper investigates the effect of religion on the educational attainment of pupils in their final year of compulsory education in England. The results show that pupils that identify with any religion have better academic performance than other pupils, after controlling for various family, parental and neighbourhood characteristics. The outperformance is reinforced by previous attendance at religious classes but there is no similar effect from considering religion to be very important to their life. Allowing for religion-specific effects shows that Muslim pupils outperform Christian pupils although the performance of the latter group is boosted by attendance at religious classes.
Journal: Applied Economics
Pages: 430-442
Issue: 4
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646872
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646872
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Handle: RePEc:taf:applec:v:52:y:2020:i:4:p:430-442
Template-Type: ReDIF-Article 1.0
Author-Name: Cormac O’ Keeffe
Author-X-Name-First: Cormac
Author-X-Name-Last: O’ Keeffe
Author-Name: Liam A. Gallagher
Author-X-Name-First: Liam A.
Author-X-Name-Last: Gallagher
Title: The winner-loser anomaly: recent evidence from Greece
Abstract:
This article finds evidence of significant reversals in returns over the medium term in Greek stocks. In contrast with previous research, return reversals are more pronounced for past winners, suggesting that the market overreacts to a greater extent to good news. These contrarian returns are particularly elevated when portfolios are formed using quartiles and during tranquil and bull markets. The optimum contrarian strategy involves skipping the first 6 months of the holding period and implementing the contrarian strategy for a period of 18 months, as returns exhibit continuation followed by reversal. The profitability of the contrarian investment strategy is robust to adjustments for risk and seasonalities. It is the tranquil times and not the crisis/volatile times that generates a significant and profitable contrarian strategy. The recent credit crisis and resulting stock market falls, resulted in extreme movements in some Greek stocks and testing of the contrarian strategy problematic, especially when portfolios are decile ordered. Our findings also highlight the importance of survivorship bias and also suggest that contrarian strategies that just use market beta may be ill-equipped to take into consider extreme market movements, illiquidity and short-sales constraints.
Journal: Applied Economics
Pages: 4718-4728
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293786
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293786
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Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4718-4728
Template-Type: ReDIF-Article 1.0
Author-Name: Shu Chun Chang
Author-X-Name-First: Shu Chun
Author-X-Name-Last: Chang
Title: Railway development from the Japanese occupation period to the present – using Kaohsiung city as an example
Abstract:
This study intended to discuss the interactive influence of the emergence, transformation and decline of the railway in Kaohsiung Port on urban development, the population, the activities and the economy in the region during the period of 1895–2010, from the perspectives of urban planning, railway development, population and industry. This study used the crossover analysis method, and used the factors of railway development and urban planning, within a fixed time period, to explore the chain dependence relationship among the industry, the population, the regional economy and the railway stations in Kaohsiung city. This study found that urban planning, economic development, railway development and industry have an interactive influence on the overall urban development. Urban planning promotes the rapid growth of the population, and economic development propels the growth and shaping of the regional economy, thus increasing employment opportunities. In addition, the railway development process moves forward with urban development.
Journal: Applied Economics
Pages: 4729-4741
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293787
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293787
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Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4729-4741
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Pauliina Sandqvist
Author-X-Name-First: Anna Pauliina
Author-X-Name-Last: Sandqvist
Title: Dynamics of sectoral business cycle comovement
Abstract:
Sectoral comovement accounts for a considerable share of the variance of aggregate variables. However, little is known about its time-varying aspects by now. In this article, a multivariate DCC- GARCH framework is employed to study dynamics of sectoral comovement across manufacturing sectors both in the United States and in Germany. To account for possible nonlinearities, asymmetric effects in conditional volatilities as well as in conditional correlations are being assessed. We find that comovement across sectors is not stable but shows irregular movements. Particularly, contractions tend to be more synchronized than expansions in manufacturing sector. Moreover, we examine the role of various aggregate factors for the fluctuations in conditional correlations. Our findings reveal that both the non-constant variability of common factors and the changes in the effects of these factors play role for the fluctuations in sectoral comovement.
Journal: Applied Economics
Pages: 4742-4759
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293790
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293790
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Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4742-4759
Template-Type: ReDIF-Article 1.0
Author-Name: Liang Guo
Author-X-Name-First: Liang
Author-X-Name-Last: Guo
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Author-Name: Maggie Hao
Author-X-Name-First: Maggie
Author-X-Name-Last: Hao
Author-Name: Hongxian Zhang
Author-X-Name-First: Hongxian
Author-X-Name-Last: Zhang
Title: Uncertainty and liquidity in corporate bond market
Abstract:
We examine the uncertainty–liquidity connection in the corporate bond market. Using monthly corporate bond data from 2005 to 2010, we construct proxies for parameter uncertainty by using firm-level parameters generated from a structural model of corporate debt. We find that uncertainty about firm parameters decreases trading volume but increases bid-ask spreads and price bouncing in the cross-section and across time. In addition, the panel VAR results show that parameter uncertainty has negative forecasting power for future bond liquidity, with greater uncertainty in the current month leading to lower trading volume, higher bid-ask spreads and higher price fluctuations on subsequent months. We conclude that parameter uncertainty is one of the underlying factors giving rise to the high level of illiquidity in the corporate bond market.
Journal: Applied Economics
Pages: 4760-4781
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293792
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293792
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Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4760-4781
Template-Type: ReDIF-Article 1.0
Author-Name: Patricia D. Fuentes-Saguar
Author-X-Name-First: Patricia
Author-X-Name-Last: D. Fuentes-Saguar
Author-Name: Juan A. Vega-Cervera
Author-X-Name-First: Juan
Author-X-Name-Last: A. Vega-Cervera
Author-Name: Manuel Alejandro Cardenete
Author-X-Name-First: Manuel Alejandro
Author-X-Name-Last: Cardenete
Title: Socio-economic impact of a nuclear power plant: Almaraz (Spain)
Abstract:
An analysis is made of the socio-economic impact in a region in which a nuclear plant is decommissioned. The average age of nuclear power plants around the world is high, so that many are close to the end of their useful life. The issue of this impact will be important in a few years for various reasons, especially because those plants tend to be drivers of the economic activity in the areas in which they are located. The focus of this communication is on these socio-economic effects. Methodologically, socio-economic analysis uses a linear Social Accounting Matrix model that improves traditional Input–Output approaches by covering the induced effects generated from the receptors of income out to other sectors of the economy. The procedure is applied to an empirical analysis of the Almaraz Nuclear Power Plant in Spain. This was purposely chosen as sharing many of the general characteristics of nuclear plants around the world. If the plant is closed down, our results suggest that there will be a clear negative impact in terms of employment and added value generation.
Journal: Applied Economics
Pages: 4782-4792
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293793
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293793
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Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4782-4792
Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Han-Chiang Ho
Author-X-Name-First: Han-Chiang
Author-X-Name-Last: Ho
Title: Markov regime-switching Beta--EGARCH
Abstract:
We suggest a Markov regime-switching (MS) Beta-t-EGARCH (exponential generalized autoregressive conditional heteroscedasticity) model for U.S. stock returns. We compare the in-sample statistical performance of the MS Beta-t-EGARCH model with that of the single-regime Beta-t-EGARCH model. For both models we consider leverage effects for conditional volatility. We use data from the Standard Poor’s 500 (S&P 500) index and also a random sample that includes 50 components of the S&P 500. We study the outlier-discounting property of the single-regime Beta-t-EGARCH and MS Beta-t-EGARCH models. For the S&P 500, we show that for the MS Beta-t-EGARCH model extreme observations are discounted more for the low-volatility regime than for the high-volatility regime. The conditions of consistency and asymptotic normality of the maximum likelihood estimator are satisfied for both the single-regime and MS Beta-t-EGARCH models. All likelihood-based in-sample statistical performance metrics suggest that the MS Beta-t-EGARCH model is superior to the single-regime Beta-t-EGARCH model. We present an application to the out-of-sample density forecast performance of both models. The results show that the density forecast performance of the MS Beta-t-EGARCH model is superior to that of the single-regime Beta-t-EGARCH model.
Journal: Applied Economics
Pages: 4793-4805
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293794
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293794
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Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4793-4805
Template-Type: ReDIF-Article 1.0
Author-Name: Jinfang Li
Author-X-Name-First: Jinfang
Author-X-Name-Last: Li
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Title: The cross-section and time-series effects of individual stock sentiment on stock prices
Abstract:
In this article, we construct an individual stock sentiment index by using the principal component analysis method. We empirically study the cross-section and time-series effects of investor sentiment on the stock prices based on the panel data model with dummy variable. The results indicate that individual stock sentiment has greater impact on small-firm stock prices than big-firm stock prices, which presents obvious cross-section effect. Moreover, individual stock sentiment leads to much sharper fluctuations of stock prices in the stock market downturn than in the stock market expansion, which shows obvious time-series effect. Specifically, the individual stock sentiment has the greatest impact on small-firm stock prices under the stock market downturn, exerting significant dual asymmetric effect. Our results are helpful to understanding the micro-mechanism of sentiment effect.
Journal: Applied Economics
Pages: 4806-4815
Issue: 47
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293795
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293795
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Handle: RePEc:taf:applec:v:49:y:2017:i:47:p:4806-4815
Template-Type: ReDIF-Article 1.0
Author-Name: Anjum Siddiqui
Author-X-Name-First: Anjum
Author-X-Name-Last: Siddiqui
Author-Name: Atiq ur Rehman
Author-X-Name-First: Atiq ur
Author-X-Name-Last: Rehman
Title: The human capital and economic growth nexus: in East and South Asia
Abstract:
This study adopts a disaggregated regional focus to test for the human capital (HC)-growth nexus in selected nine Asian countries. It utilizes the Empirical Bayesian methodology which addresses not only the heterogeneity issue but it also utilizes the common structural priors of regional countries to yield ‘informationally’ efficient estimates of the impact of HC on the stock and levels of GDP. Various measures of HC are utilized to determine which of these produces a better explanation of economic growth in the two Asian regions. The study finds that primary and secondary education was more prominent in explaining the fluctuations of economic growth in East Asia, whereas tertiary and vocational education showed positive effects on economic growth in South Asia. Government expenditures on education were also found to positively affect economic growth in both regions. The results shed new evidence to establish that the differences in growth rates within East and South Asia are associated with differences in educational progression in the regions.
Journal: Applied Economics
Pages: 2697-2710
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245841
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245841
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Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2697-2710
Template-Type: ReDIF-Article 1.0
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Author-Name: Shin S. Ikeda
Author-X-Name-First: Shin S.
Author-X-Name-Last: Ikeda
Title: Effects of short sale ban on financial liquidity in crisis and non-crisis periods: a propensity score-matching approach
Abstract:
We investigate the impact of banning the short-selling (shorting ban) on liquidity of stocks traded in the Hong Kong Stock Exchange (HKEx) on the basis of the 20 revisions of the designated list of shortable stocks from January 2006 to December 2010. In order to avoid endogeneity due to the liquidity-adaptive implementation of the ban policy, we use the propensity score-matching of shortable and unshortable stocks and apply the double- and triple-difference methods embedded in the fixed effect panel regression for the matched data. Using two outcome variables for illiquidity, the Amihud price-impact measure, and the bid-ask spread, our results suggests that the shorting ban in this market may have a liquidity-supporting effect in terms of the price impact with no regard to market tranquility and in terms of the spread with regard to the 2008–2009 financial crisis.
Journal: Applied Economics
Pages: 2711-2718
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245843
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245843
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Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2711-2718
Template-Type: ReDIF-Article 1.0
Author-Name: Feriha Ibriyamova
Author-X-Name-First: Feriha
Author-X-Name-Last: Ibriyamova
Author-Name: Samuel Kogan
Author-X-Name-First: Samuel
Author-X-Name-Last: Kogan
Author-Name: Galla Salganik-Shoshan
Author-X-Name-First: Galla
Author-X-Name-Last: Salganik-Shoshan
Author-Name: David Stolin
Author-X-Name-First: David
Author-X-Name-Last: Stolin
Title: Using semantic fingerprinting in finance
Abstract:
Researchers in finance and adjacent fields have increasingly been working with textual data, a common challenge being analysing the content of a text. Traditionally, this task has been approached through labour- and computation-intensive work with lists of words. In this article we compare word list analysis with an easy-to-implement and computationally efficient alternative called semantic fingerprinting. Using the prediction of stock return correlations as an illustration, we show semantic fingerprinting to produce superior results. We argue that semantic fingerprinting significantly reduces the barrier to entry for research involving textual content analysis, and we provide guidance on implementing this technique.
Journal: Applied Economics
Pages: 2719-2735
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245844
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245844
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Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2719-2735
Template-Type: ReDIF-Article 1.0
Author-Name: Zhen Huang
Author-X-Name-First: Zhen
Author-X-Name-Last: Huang
Author-Name: Wanli Li
Author-X-Name-First: Wanli
Author-X-Name-Last: Li
Author-Name: Weiwei Gao
Author-X-Name-First: Weiwei
Author-X-Name-Last: Gao
Title: Why do firms choose zero-leverage policy? Evidence from China
Abstract:
In recent years, firms choosing zero-leverage policy have largely increased around the world. However, few studies have focused on why Chinese firms choose zero-leverage policy. In this article, we investigate the motivations for firms choosing zero-leverage policy from the perspective of financing needs. Using a sample of public firms listed in Shanghai and Shenzhen Stock market in China from 2007 to 2014, we find that firms without external financing needs are more likely to become zero-leverage firms, and that financial constraints and financial flexibility also may be the motivations for firms choosing zero-leverage policy.
Journal: Applied Economics
Pages: 2736-2748
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245845
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245845
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Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2736-2748
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon
Author-X-Name-First: Robert
Author-X-Name-Last: Dixon
Author-Name: G. C. Lim
Author-X-Name-First: G. C.
Author-X-Name-Last: Lim
Author-Name: Jan C. van Ours
Author-X-Name-First: Jan C.
Author-X-Name-Last: van Ours
Title: Revisiting the Okun relationship
Abstract:
Our article revisits the Okun relationship between observed unemployment rates and output gaps. We include in the relationship the effect of labour market institutions as well as age and gender effects. Our empirical analysis is based on 20 OECD countries over the period 1985–2013. We find that the share of temporary workers (which includes a high and rising share of young workers) played a crucial role in explaining changes in the Okun coefficient (the impact of the output gap on the unemployment rate) over time. The Okun coefficient is not only different for young, prime-age and older workers but also it decreases with age. From a policy perspective, it follows that an increase in economic growth will not only have the desired outcome of reducing the overall unemployment rate but it will also have the distributional effect of lowering youth unemployment.
Journal: Applied Economics
Pages: 2749-2765
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1245846
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245846
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Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2749-2765
Template-Type: ReDIF-Article 1.0
Author-Name: Bill Hu
Author-X-Name-First: Bill
Author-X-Name-Last: Hu
Author-Name: Christine Jiang
Author-X-Name-First: Christine
Author-X-Name-Last: Jiang
Author-Name: Thomas McInish
Author-X-Name-First: Thomas
Author-X-Name-Last: McInish
Author-Name: Haigang Zhou
Author-X-Name-First: Haigang
Author-X-Name-Last: Zhou
Title: Price clustering on the Shanghai Stock Exchange
Abstract:
We investigate price clustering of intraday trades and negotiated block trades on the Shanghai Stock Exchange (SSE) from 2003 to 2009. Prices of traded assets tend to cluster on certain final digits, such as 0 and 5. In Chinese culture, 8 is associated with good luck and 4 with death so these numbers may be attractive or avoided. We find that price clustering on the final digit of 0 is significantly higher during the morning call auction and early in the trading day. We find no evidence of price clustering for the digit 8, but there is a significant dearth of prices ending in the inauspicious number 4. Price clustering is significantly higher for negotiated block trades, for which about 28% end with 0. Multivariate analysis shows that price clustering is lower for more liquid firms, but higher for firms with higher return volatility, a higher price level, or when the market is volatile. Our evidence supports the costly negotiation hypothesis. Our results also support the attraction hypothesis in that we document significant price clustering at round numbers and even numbers even after controlling for factors that are associated with price uncertainty.
Journal: Applied Economics
Pages: 2766-2778
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248284
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248284
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Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2766-2778
Template-Type: ReDIF-Article 1.0
Author-Name: Annette Alstadsæter
Author-X-Name-First: Annette
Author-X-Name-Last: Alstadsæter
Author-Name: Martin Jacob
Author-X-Name-First: Martin
Author-X-Name-Last: Jacob
Title: Who participates in tax avoidance? Evidence from Swedish microdata
Abstract:
This article empirically examines why not all individuals participate in tax avoidance. We use rich Swedish administrative panel data on all taxpayers, with a link between corporate and individual tax returns and document that few individuals utilize legal and observable tax avoidance opportunities. Our results show that there are several frictions in tax avoidance participation. In addition to monetary benefits from tax avoidance (incentives), the opportunity to participate in tax avoidance (access), as well as information and knowledge about these opportunities (awareness), are important factors for the individual’s tax avoidance decision. We further show that tax avoidance spreads within communities. The impact of the local network is stronger for non-commuters who live and work in the same municipality.
Journal: Applied Economics
Pages: 2779-2796
Issue: 28
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248285
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248285
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Handle: RePEc:taf:applec:v:49:y:2017:i:28:p:2779-2796
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Baltas
Author-X-Name-First: Nicholas
Author-X-Name-Last: Baltas
Author-Name: Mike G. Tsionas
Author-X-Name-First: Mike G.
Author-X-Name-Last: Tsionas
Author-Name: Konstantinos Baltas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Baltas
Title: Foreign direct investment in OECD countries: a special focus in the case of Greece
Abstract:
Foreign Direct Investment (FDI) is considered as an important instrument for economic development all over the world. The aim of this paper is to examine the FDI inflows determinants for 24 OECD countries. To this end we employ annual data from 1980 to 2012 for a series of potential FDI determinants that have been identified as the most important by the relevant literature. Our empirical strategy employs both the standard fixed effects panel as well as a dynamic panel approach. The empirical findings highlight the importance of market size, trade openness, unit labor cost, schooling, taxation, gross capital formation, institutional variables, and ROA/ROE as significant FDI determinants. In the case of the dynamic panel model those FDI inflows determinants are not uniform for all country groups. Additionally, the results indicate that corporate tax rates clearly affect FDI attractiveness. This finding is robust when testing different countries subgroups. The present study has important policy implications indicating the factors that host economies should place emphasis on in order to attract FDI inflows. Policy makers should not only pay attention to the corporate tax rate level but they should also design a simple, stable and transparent taxation system that minimizes the relevant business risk.
Journal: Applied Economics
Pages: 5579-5591
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488054
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488054
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Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5579-5591
Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Author-Name: Hai Lin
Author-X-Name-First: Hai
Author-X-Name-Last: Lin
Author-Name: Ping-Wen Sun
Author-X-Name-First: Ping-Wen
Author-X-Name-Last: Sun
Author-Name: Bin Yu
Author-X-Name-First: Bin
Author-X-Name-Last: Yu
Title: A reliable performance measure to differentiate China’s actively managed open-end equity mutual funds
Abstract:
We compare different fund performance measures to examine which performance measures can generate risk-adjusted returns between high ranked and low ranked China’s actively managed open-end equity mutual funds. Our results show that only the six-factor (five factors (market, size, b/m, profitability & Investment facotrs) plus a momentum factor) alpha as the performance measure meets the criteria. Separated by the six-factor alpha, better performing funds have a larger asset under management, a better past 6-month cumulative return, a better stock picking ability, and a higher percentage of hybrid funds. Through our sample period from July 2004 to December 2015, the highest ranked quintile funds generate a monthly risk-adjusted return of 0.24% more than the lowest ranked quintile funds and the six-factor alpha reliably selects a better fund portfolio in both bear and bull markets on the basis of both fund return and holding data. Furthermore, our results from fund trading data show that funds with the highest six-factor alpha rank demonstrate a better trading skill in bear markets, suggesting that those better performing funds exhibit their market timing and stock picking abilities when investors need them most.
Journal: Applied Economics
Pages: 5592-5603
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488055
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488055
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Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5592-5603
Template-Type: ReDIF-Article 1.0
Author-Name: Hsien-Yi Chen
Author-X-Name-First: Hsien-Yi
Author-X-Name-Last: Chen
Author-Name: Shu-Ling Yang
Author-X-Name-First: Shu-Ling
Author-X-Name-Last: Yang
Title: Contagion effects of sovereign credit rating revisions on the real economy: is it trade or finance?
Abstract:
We analyse the contagion effects of sovereign credit rating revisions on the real economy, with particular emphasis on the intensity of trade and finance channels. Our findings show that event countries that experienced rating revisions cause substantial contagion effects on the real output growth rates of nonevent countries. Nonevent countries with a high export ratio, high external debt levels, or those that are more dependent on common bank credit relative to other nonevent countries are more likely to be infected by event countries’ adverse credit shocks. The results remain after accounting for alternative real economy indicators, financial liberalization, financial crises, and economic development status.
Journal: Applied Economics
Pages: 5604-5619
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488056
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488056
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Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5604-5619
Template-Type: ReDIF-Article 1.0
Author-Name: Gregmar I. Galinato
Author-X-Name-First: Gregmar I.
Author-X-Name-Last: Galinato
Author-Name: You Zhou
Author-X-Name-First: You
Author-X-Name-Last: Zhou
Title: How a race to the bottom can make you fat
Abstract:
This article measures the effect of fiscal competition on obesity rates in the United States through education and health spending. We hypothesize that fiscal competition to attract firms results in lower business tax revenues and higher public infrastructure spending which crowds out education and health spending leading to an increase in obesity rates. We empirically test this hypothesis. We find that there is significant fiscal competition to attract firms. Next, we show that when business tax revenues are lowered and public infrastructure spending favouring businesses increased, public health and education spending declines and obesity rates significantly increase. Thus, fiscal competition significantly contributes to obesity rates through the education and health spending channel.
Journal: Applied Economics
Pages: 5620-5640
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488058
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488058
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Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5620-5640
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Amatul Razzaq Chaudhary
Author-X-Name-First: Amatul Razzaq
Author-X-Name-Last: Chaudhary
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Title: Is energy consumption sensitive to foreign capital inflows and currency devaluation in Pakistan?
Abstract:
This study investigates the relationship between foreign capital inflows and energy consumption by incorporating economic growth, exports and currency devaluation in energy demand function for the case of Pakistan. The long-run and short-run effects are examined via ARDL bounds testing procedure. Foreign capital inflows and currency devaluation (economic growth and exports) decrease (increase) energy consumption in long-run. The results confirm a feedback effect between foreign capital inflows and energy consumption. These findings would be helpful to policy makers in designing comprehensive economic and energy policies for utilizing foreign capital inflows as a tool for optimal use of energy sources to enhance economic development in long run.
Journal: Applied Economics
Pages: 5641-5658
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488059
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488059
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Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5641-5658
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Wilson
Author-X-Name-First: Nicholas
Author-X-Name-Last: Wilson
Title: Targeted characteristics and use of socially marketed preventive health goods: evidence from condoms in sub-Saharan Africa
Abstract:
Social marketing is a popular method for allocating targeted publicly funded preventive health goods in poor countries. However, low demand among targeted groups may inhibit take-up relative to non-targeted groups, ownership may not result in use, and there exists little large-scale evidence on how use of socially marketed goods varies by targeted characteristics. I assemble national household survey data from 27 sub-Saharan African countries to examine how use of one of the most common socially marketed preventive health goods (i.e. male condoms) varies by the main targeted characteristics (i.e. low income, low educational attainment, and high HIV risk).The results suggest that the majority of condoms used are socially marketed condoms, engaging in transactional sex is associated with an increased likelihood of using a socially marketed condom brand, and low-income/low educational attainment are not associated with increased likelihoods of using socially marketed brands. The fact that distribution targets low socioeconomic status groups and relative use remains low suggests that weak demand for condoms among these groups inhibits use. Policymakers should consider mechanisms to increase demand and to further refine targeting efforts.
Journal: Applied Economics
Pages: 5659-5671
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488060
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488060
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Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5659-5671
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner
Author-X-Name-First: Kurt A.
Author-X-Name-Last: Hafner
Author-Name: Lennart Kampe
Author-X-Name-First: Lennart
Author-X-Name-Last: Kampe
Title: Monetary union in Latin America: an assessment in the context of optimum currency area
Abstract:
The article applies the optimum currency area (OCA) theory to Latin America to assess the potential of a monetary union in Latin America and in its major existing regional trade agreements (RTAs). According to OCA criteria we find that Latin America is far from being an optimum currency area, as its countries’ exposure to asymmetric shocks is high and their capacities to adjust in response to macroeconomic disturbances are limited. Using a panel of 20 Latin American countries from 1990 to 2014, we apply the dynamic OLS estimation techniques to estimate the costs and benefits of a potential monetary union in Latin America and in its various RTAs. to estimate the costs and benefits of a potential monetary union in Latin America and in its various RTAs. We find that the costs are high, because Latin America’s economies are vulnerable to severe macroeconomic disturbances and its RTAs differ significantly in their response to negative demand shocks. Most of the monetary efficiency gains are shown to be the result of a common restrictive monetary policy which would result in higher FDI inflows and, to a more limited extent, increased GDP, both overall and per capita. Although Central American countries are shown to be most suitable for further monetary integration, we conclude that Latin American countries should head first towards greater economic and political integration.
Journal: Applied Economics
Pages: 5672-5697
Issue: 52
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489116
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489116
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Handle: RePEc:taf:applec:v:50:y:2018:i:52:p:5672-5697
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: ‘Keeping up with the (Portuguese) Joneses’—a study on the spatial dependence of municipal expenditure
Abstract:
Municipalities tend to replicate the size and the composition of their neighbours’ expenditures, independently of being ruled by left-wing or right-wing parties. This is one important conclusion of the study, which includes spatial dependence to explain the value of Portuguese municipalities’ direct awards. We used observations for the 308 Portuguese municipalities from 2009 to 2015. We then tested this spatial dependence for the mean value (per contract of direct award) and we controlled the results considering the demographic characteristics of each municipality, the political wing of the ruling party at the municipality, and the composition of the municipal expenditures.
Journal: Applied Economics
Pages: 3689-3709
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581914
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581914
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Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3689-3709
Template-Type: ReDIF-Article 1.0
Author-Name: David Bartolini
Author-X-Name-First: David
Author-X-Name-Last: Bartolini
Author-Name: Eniel Ninka
Author-X-Name-First: Eniel
Author-X-Name-Last: Ninka
Author-Name: Raffaella Santolini
Author-X-Name-First: Raffaella
Author-X-Name-Last: Santolini
Title: Tax decentralization, labour productivity, and employment in OECD countries
Abstract:
Tax decentralization should improve the efficiency of local governments and ultimately boost output growth. However, the empirical evidence is mixed. Decomposing output growth into labour productivity and employment growth, we show that the ultimate effect of fiscal decentralization on growth depends on which factor prevails, thus rendering the direct estimation of tax decentralization on growth ambiguous. Using an instrumental variable approach, with instruments based on institutional similarities and geographic distance, the empirical analysis on a sample of 20 OECD countries shows that the positive and significant effect of tax decentralization on the employment growth rate is offset by the reduction of labour productivity growth, resulting in the absence of any statistically significant effect on output growth.
Journal: Applied Economics
Pages: 3710-3729
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584369
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584369
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Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3710-3729
Template-Type: ReDIF-Article 1.0
Author-Name: Yujiang Bi
Author-X-Name-First: Yujiang
Author-X-Name-Last: Bi
Author-Name: W. Robert J. Alexander
Author-X-Name-First: W. Robert J.
Author-X-Name-Last: Alexander
Author-Name: Zhen Pei
Author-X-Name-First: Zhen
Author-X-Name-Last: Pei
Title: Factors affecting trade in services: evidence from panel data
Abstract:
In the course of economic development, nations have typically progressed through stages in which agriculture, then manufacturing and, finally, services predominate. Concerns around the sustainability of manufacturing and goods export-led growth raise the importance of trade in services. In the context of a panel model, controlling for the factors that determine trade in general, we examine the determinants of trade in services in a sample of 46 countries over the decade 2004–2015. We find an ambiguous pattern of effects from institutional quality but strong evidence of the importance of trade in goods for trade in services.
Journal: Applied Economics
Pages: 3730-3739
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584379
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584379
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Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3730-3739
Template-Type: ReDIF-Article 1.0
Author-Name: Haizhen Mou
Author-X-Name-First: Haizhen
Author-X-Name-Last: Mou
Author-Name: Michael M. Atkinson
Author-X-Name-First: Michael M.
Author-X-Name-Last: Atkinson
Author-Name: Jim Marshall
Author-X-Name-First: Jim
Author-X-Name-Last: Marshall
Title: Budgeting for efficiency? A case study of the public K-12 education systems of Canada
Abstract:
In spite of the declining and uneven performance of Canadian students on the OECD’s Programme for International Student Assessment (PISA) tests, little attention has been paid to whether provinces are allocating their education budgets to improve academic performance. This study uses a two-stage data envelope analysis (DEA) technique to estimate the degree to which education expenditures are efficiently allocated relative to achievement scores. We find that in these terms the overall cost-efficiency of the public K-12 education systems in the 10 provinces has deteriorated and that, in general, the provinces have become less able to allocate resources efficiently and use them in the most technically productive way. However, some provinces are more efficient than others. To gauge the extent to which performance measures, such as PISA scores, factor into budgeting decisions we interviewed 28 budget managers in 10 Canadian provinces and two territories, probing the criteria used to allocate education resources. The preponderant pattern of budgeting is described as an ‘increments-based-on-formula’ approach, one that is not particularly responsive to efficiency concerns but that often takes account of equity imperatives.
Journal: Applied Economics
Pages: 3740-3757
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584380
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584380
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Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3740-3757
Template-Type: ReDIF-Article 1.0
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Author-Name: Qin Luo
Author-X-Name-First: Qin
Author-X-Name-Last: Luo
Title: Market concentration measurement, administrative monopoly effect and efficiency improvement: empirical data from China civil aviation industry 2001-2015
Abstract:
China’s civil aviation transportation industry is a natural monopoly industry field, and the effect of administrative monopoly is obviously. This paper uses absolute market concentration (CRn) and relative market concentration (HHI) to quantitatively analyze the competition and monopoly degree of Chinese civil aviation transportation in 2001–2015. It is found that although the monopoly degree of Chinese civil aviation industry has declined in the time period, it still belongs to the oligopoly monopoly market. Then, this paper calculates the production efficiency of the industry by DEA method, and makes an empirical test on the relationship between the two factors using the econometric models. With taking into account the calculated results and the HHI index. Relevant research results show that the equilibrium between the existing production efficiency and the degree of administrative monopoly in China’s civil aviation transportation industry long-term stably from the time period. In order to realize the rapid development and improve the efficiency of the industry, the Chinese civil aviation transportation industry must carry out the market-oriented reform. By realizing the separation of government and enterprises, it is necessary to promote the good competition rules in order to benefit the consumers.
Journal: Applied Economics
Pages: 3758-3769
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584381
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584381
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Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3758-3769
Template-Type: ReDIF-Article 1.0
Author-Name: Louinord Voltaire
Author-X-Name-First: Louinord
Author-X-Name-Last: Voltaire
Author-Name: P. Wilner Jeanty
Author-X-Name-First: P. Wilner
Author-X-Name-Last: Jeanty
Author-Name: Claudio Pirrone
Author-X-Name-First: Claudio
Author-X-Name-Last: Pirrone
Author-Name: Pierre-Alexandre Mahieu
Author-X-Name-First: Pierre-Alexandre
Author-X-Name-Last: Mahieu
Title: A convergent validity test within the payment card format using simulation techniques
Abstract:
A convergent validity test is performed between two groups of versions of the payment card format. The first group, the classic payment card (CPC), asks respondents to report their willingness to pay (WTP) as a point from a list of amounts, and then treats each WTP response as an interval. The second group generates WTP data that may contain both single point and interval values. It includes the two-way-payment ladder (TWPL) (respondents have to tick amounts they would definitely pay and cross amounts they would definitely not pay), and point-interval payment card (PIPC) (respondents have to tick their WTP as either a point or an interval). The test is conducted using data from one TWPL study and two PIPC studies. For each study, we use WTP values stated to simulate 200 CPC WTP datasets, which allows controlling for any behavioral biases likely to confound the outcome of the test. The results challenge the conventional way of eliciting WTP under the CPC and the typical way of treating WTP data from this PC version. Although convergent validity holds between the TWPL/PIPC and CPC, parameter and mean WTP estimates from the TWPL and PIPC are more stable as PC intervals widths increase.
Journal: Applied Economics
Pages: 3770-3786
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584382
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584382
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Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3770-3786
Template-Type: ReDIF-Article 1.0
Author-Name: Mariusz Jarmuzek
Author-X-Name-First: Mariusz
Author-X-Name-Last: Jarmuzek
Author-Name: Rossen Rozenov
Author-X-Name-First: Rossen
Author-X-Name-Last: Rozenov
Title: Excessive private sector leverage and its drivers: evidence from advanced economies
Abstract:
The paper provides novel quantitative assessments of the gaps between actual and sustainable levels of debt for households and corporates in selected advanced economies, revealing considerable heterogeneity across sectors and countries. The accumulation of gaps is found to precede financial distress. The paper also identifies key factors that drive excessive debt, separately for households and corporates. For households, excessive leverage is found to be higher in countries with lower interest rates and higher share of working population, but importantly also in countries with rising house prices and greater uncertainty as captured by unemployment. For corporates, debt overhang is estimated to be higher in countries with lower profitability, stronger insolvency frameworks and in absence of thin capitalization rules. There is therefore scope for the use of policy to limit the build-up of household and corporate debt overhang.
Journal: Applied Economics
Pages: 3787-3803
Issue: 34
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584383
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584383
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Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3787-3803
Template-Type: ReDIF-Article 1.0
Author-Name: Meher Manzur
Author-X-Name-First: Meher
Author-X-Name-Last: Manzur
Title: Exchange rate economics is always and everywhere controversial
Abstract:
This article reviews the major developments in the recent literature on exchange rate economics. It is argued that the link between the exchange rate and economic fundamentals is breaking new ground. Evidence indicates that alternative analytical frameworks (such as the new open-economy macroeconomics) and exchange rate arrangements (such as the euro) have their theoretical and analytical elegance, but are proving empirically very difficult to implement. The role of methodological advances and alternative fundamental instruments (such as world commodity prices) is also highlighted.
Journal: Applied Economics
Pages: 216-232
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313960
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313960
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Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:216-232
Template-Type: ReDIF-Article 1.0
Author-Name: Chuang-Min Chao
Author-X-Name-First: Chuang-Min
Author-X-Name-Last: Chao
Author-Name: Ming-Miin Yu
Author-X-Name-First: Ming-Miin
Author-X-Name-Last: Yu
Author-Name: Nan-Hsing Hsiung
Author-X-Name-First: Nan-Hsing
Author-X-Name-Last: Hsiung
Author-Name: Li-Hsueh Chen
Author-X-Name-First: Li-Hsueh
Author-X-Name-Last: Chen
Title: Profitability efficiency, marketability efficiency and technology gaps in Taiwan’s banking industry: meta-frontier network data envelopment analysis
Abstract:
The aim of this article is to measure the profitability efficiency (PE) and marketability efficiency (ME) of non-homogenous Taiwanese banks after the adoption of International Financial Reporting Standards by using the convex meta-frontier data envelopment analysis model. The model is applied to simultaneously estimate PE and ME of the banks in financial holding companies (FHCs) and the banks not in FHCs. The meta-inefficiencies in individual processes are further decomposed into group inefficiencies and technology gap inefficiencies to explore the sources of inefficiency. The empirical results indicate that the banks in FHCs can reduce more costs than the banks not in FHCs, whereas the banks not in FHCs can create greater market value than the banks in FHCs. For the banks joining and not in FHCs, technology gap inefficiency is the main source of inefficiencies in both profitability and marketability processes.
Journal: Applied Economics
Pages: 233-250
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1316827
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316827
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Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:233-250
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Langcake
Author-X-Name-First: Sean
Author-X-Name-Last: Langcake
Author-Name: Tim Robinson
Author-X-Name-First: Tim
Author-X-Name-Last: Robinson
Title: Forecasting the Australian economy with DSGE and BVAR models
Abstract:
Reflecting the importance of commodities for the Australian economy, we construct a dynamic stochastic general equilibrium (DSGE) model of the Australian economy with a commodity sector. We assess whether its forecasts can be improved by using it as a prior for an empirical Bayesian vector autoregression (BVAR). We find that the forecasts from the BVAR tend to be more accurate than those from the DSGE model. Nevertheless, for output growth these forecasts do not outperform benchmark models, such as a small open economy BVAR estimated using the standard priors for forecasting. A Bayesian factor augmented vector autoregression produces the most accurate near-term inflation forecasts.
Journal: Applied Economics
Pages: 251-267
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319558
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319558
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Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:251-267
Template-Type: ReDIF-Article 1.0
Author-Name: Ankita Mishra
Author-X-Name-First: Ankita
Author-X-Name-Last: Mishra
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: Re-examination of convergence hypothesis among Indian states in panel stationarity testing framework with structural breaks
Abstract:
This article examines the conditional income convergence hypothesis for 17 major states in India for the period of 1960–2012. Univariate stationarity tests without structural breaks provide evidence against the convergence hypothesis. However, when two or more structural breaks are applied in per capita income series, the incomes of around 11–13 states are found to stochastically converge to the national average. This finding supports the convergence hypothesis for the panel as a whole after accounting for two data features, cross-sectional dependence and structural breaks in incomes, using a unified panel stationarity testing framework.
Journal: Applied Economics
Pages: 268-286
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319559
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319559
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Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:268-286
Template-Type: ReDIF-Article 1.0
Author-Name: Ying (Jessica) Cao
Author-X-Name-First: Ying (Jessica)
Author-X-Name-Last: Cao
Author-Name: John Cranfield
Author-X-Name-First: John
Author-X-Name-Last: Cranfield
Author-Name: Tina Widowski
Author-X-Name-First: Tina
Author-X-Name-Last: Widowski
Title: Position-Dependent order effects on the prediction of consumer preferences in repeated choice experiments
Abstract:
Using stated choice data collected by experimental design with repeated choice tasks, this study developed an approach to quantify the position-dependent order effects on the prediction of preferences and marginal willingness to pay for product attributes. Results showed that repeated choice tasks allow learning to occur. Models with order effect adjustments showed significant improvements in goodness of fit. Attribute-specific polynomial trends showed the best fit among all models, which could possibly be explained by respondents’ familiarity and sensitivity to different product attributes. Repeated-choice experiments have a good potential to capture consumer preferences more accurately than the single-choice design. But order effects need to be taken into account for preferences and market prediction.
Journal: Applied Economics
Pages: 287-302
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321836
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321836
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Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:287-302
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Mikkelsen
Author-X-Name-First: Andreas
Author-X-Name-Last: Mikkelsen
Title: Pairs trading: the case of Norwegian seafood companies
Abstract:
In this article, I investigate the performance of a pairs trading strategy on 18 seafood company stocks traded in the Norwegian consumer goods sector on the Oslo Stock Exchange. I apply both high-frequency and daily data from January 2005 to December 2014. I use two approaches – a distance approach and a cointegration approach – and compare the results. For both the distance and the cointegration approaches, nonconvergence of the pairs is high, which may indicate that more fundamental information about the companies traded should be accounted for. None of the strategies evaluated had significant profits after accounting for transaction costs. It therefore remains unclear which approach is best suited for pairs selection. Using high-frequency data yielded empirical distributions that were symmetrical and had a lower degree of leptokurtosis compared to the daily data.
Journal: Applied Economics
Pages: 303-318
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321837
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321837
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Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:303-318
Template-Type: ReDIF-Article 1.0
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Author-Name: Jihong Xiao
Author-X-Name-First: Jihong
Author-X-Name-Last: Xiao
Author-Name: Chuangxia Huang
Author-X-Name-First: Chuangxia
Author-X-Name-Last: Huang
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Title: Interaction between oil and US dollar exchange rate: nonlinear causality, time-varying influence and structural breaks in volatility
Abstract:
This article examines the nonlinear Granger causality and time-varying influence between crude oil prices and the US dollar (USD) exchange rate using the Hiemstra and Jones (HP) test, the Diks and Panchenko (DP) test and the time-varying parameter structural vector autoregression model. By applying the iterated cumulative sums of squares (ICSS) algorithm and the DCC-GARCH model, the effects of structural breaks in volatility of the two markets are also investigated. The empirical analysis indicates that, first, crude oil prices are the nonlinear Granger-cause of the USD exchange rate, but not vice versa. Second, the USD exchange rate exerts a stronger and more stable negative influence on crude oil prices in the short term, and the influence gradually weakens after 2012. Finally, ignoring structural breaks can increase the negative volatility correlation between the oil and USD exchange rate markets, which is particularly remarkable during the financial crisis.
Journal: Applied Economics
Pages: 319-334
Issue: 3
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321838
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321838
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Handle: RePEc:taf:applec:v:50:y:2018:i:3:p:319-334
Template-Type: ReDIF-Article 1.0
Author-Name: Zhongjun Zhang
Author-X-Name-First: Zhongjun
Author-X-Name-Last: Zhang
Author-Name: Shunming Zhang
Author-X-Name-First: Shunming
Author-X-Name-Last: Zhang
Author-Name: Fangfang Zhang
Author-X-Name-First: Fangfang
Author-X-Name-Last: Zhang
Author-Name: Jing Yu
Author-X-Name-First: Jing
Author-X-Name-Last: Yu
Author-Name: Yanyang Zhu
Author-X-Name-First: Yanyang
Author-X-Name-Last: Zhu
Title: Validity of sustainability framework for China’s mining cities – a structural equation modelling approach
Abstract:
Many studies developed their framework for sustainability through indicator systems, but the interactions and relationships within these indicators have not been studied yet. In this article, based on indicator systems, we use a sample of 78 mining cities in China and employ structural equation modelling (SEM) method to explore the validity of sustainability framework. Our empirical results show that resources abundance positively affects urbanization level significantly but negatively affects cleaner production level and environmental protection level significantly; economic strength positively affects urbanization level significantly; cleaner production level has a significant effect on economic strength and non-mineral resources conversion efficiency. We also find that when economic strength is low, resources abundance might weaken the positive effect of economy on urbanization.
Journal: Applied Economics
Pages: 4585-4605
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161720
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161720
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Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4585-4605
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Zhu
Author-X-Name-First: Anna
Author-X-Name-Last: Zhu
Title: Maternal employment trajectories and caring for an infant or toddler with a disability
Abstract:
Mothers caring for an infant or toddler continue to face barriers in returning to work after child birth. Mothers caring for an infant or toddler with a disability, however, may face even greater barriers. This article contributes to the literature by exploring the employment costs for this group of mothers using a novel Australian administrative data set. The employment patterns of mothers with and without a disabled infant or toddler are compared both before and after child birth. The data follow 7600 mothers on a bi-weekly basis for the entire period 12 months before and the 24 months after child birth and contain information on the disability status of the child, measures of employment and the intensity of employment. I find that mothers of disabled toddlers and infants suffer employment disadvantages relative to mothers of non-disabled children. The employment gaps grow from approximately 6 percentage points shortly after their children are born to 14–17 percentage points when their children are 12–24 months old. The employment gaps exist for full-time employment as well as for short part-time employment.
Journal: Applied Economics
Pages: 4606-4621
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161721
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161721
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Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4606-4621
Template-Type: ReDIF-Article 1.0
Author-Name: Noa Srebrnik
Author-X-Name-First: Noa
Author-X-Name-Last: Srebrnik
Author-Name: Michel Strawczynski
Author-X-Name-First: Michel
Author-X-Name-Last: Strawczynski
Title: Cyclicality of taxes and external debt
Abstract:
In their work, Vegh and Vuletin have shown that statutory tax rates are acyclical in developed economies and procyclical in developing ones. This article extends their analysis by checking the interaction of statutory tax rates with countries’ external public debt. In general, we found that the value added tax rates are changed procyclically in both developed and developing countries (i.e. taxes are raised in bad times and reduced in good times). However, when the external debt is high, in the developing countries the procyclicality increases, while the opposite result holds for developed economies. This pattern occurs mainly in times of recession, when the need for loans is the highest. Although we found that there was a reduction in procyclicality after the 2000s, these findings pose a challenge to policy-makers, who should think of ways of dealing with lack of foreign funds in difficult times.
Journal: Applied Economics
Pages: 4622-4634
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161722
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161722
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Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4622-4634
Template-Type: ReDIF-Article 1.0
Author-Name: Besma Hkiri
Author-X-Name-First: Besma
Author-X-Name-Last: Hkiri
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Chaker Aloui
Author-X-Name-First: Chaker
Author-X-Name-Last: Aloui
Title: Strength of co-movement between sector CDS indexes and relationship with major economic and financial variables over time and during investment horizons
Abstract:
The main purpose of this article is to analyse the co-movement in both time and frequency between financial sector CDS indexes and between these indexes and their main economic and financial control variables for the period 2004–2014. Empirically, we implement the wavelet-squared coherence methodology to analyse the co-movement through time, frequency and power. Our results unveil that the co-movement between the three financial sectors’ CDSs changes through time and investment horizons, stressing the importance of hedging portfolios in real time. Also, we uncover that the changes in co-movement to relatively higher frequencies coincide with the inception of the recent global financial crisis. This result is collaborated with the co-movement between each CDS index and other global risk factors, including crude oil prices, interest rates and equity market volatility. Finally, we compare the wavelet coherence results with those of the DCC-FIAPARCH model and find that the two different approaches provide quite similar conditional correlations over time. Our results are important for investors, debtors, creditors and other decision-makers which are interested in CDS spread co-movements at different frequencies or investment horizons. It would be useful for all market participants to resort to an appropriate frequency domain to have better understanding of the sector CDS interrelationship behaviour in this domain.
Journal: Applied Economics
Pages: 4635-4654
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161723
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161723
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Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4635-4654
Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Antonakakis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Antonakakis
Author-Name: Vassilios Babalos
Author-X-Name-First: Vassilios
Author-X-Name-Last: Babalos
Author-Name: Clement Kyei
Author-X-Name-First: Clement
Author-X-Name-Last: Kyei
Title: Predictability of sustainable investments and the role of uncertainty: evidence from a non-parametric causality-in-quantiles test
Abstract:
In this article, we examine sustainable investments returns predictability based on the U.S. Dow Jones Sustainability Index (DJSI) and a wide set of uncertainty and financial distress indicators for the period 2002:01–2014:12. To this end, we employ a novel non-parametric causality-in-quantile approach that captures non-linearities in returns distribution. Based on our findings we conclude that the aggregate economic policy uncertainty (EPU) indicator and some components have predictive ability for real returns of the U.S. sustainable investments index. Moreover, if we split our sample to before and after the global financial crisis our results suggest that predictors carry causal information for real returns only in the after-crisis period. Finally, some marginal evidence of predictability from sovereign debt is also observed at the lower and upper ends of the conditional distribution of the real returns of sustainable investments. Our results might entail policy implications for investors and market authorities.
Journal: Applied Economics
Pages: 4655-4665
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1161724
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1161724
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Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4655-4665
Template-Type: ReDIF-Article 1.0
Author-Name: Kae-Yih Tzeng
Author-X-Name-First: Kae-Yih
Author-X-Name-Last: Tzeng
Author-Name: Joseph Chang Pying Shieh
Author-X-Name-First: Joseph Chang Pying
Author-X-Name-Last: Shieh
Title: The transmission from equity markets to commodity markets in crises periods
Abstract:
This article investigates the transmission from equity markets to commodity markets during two major financial crises, namely the Subprime Mortgage and the Sovereign Debt Crises. We perform an analysis on sub-stages from 3 January 2003 to 31 October 2013 to capture the price behaviour of both equity and commodity markets. Two financial crises indicators, VIX and CDS, are used to represent fear of a crisis. We find that correlations between commodity and equity markets are time-varying and highly volatile during a financial crisis. While sharing some common features, commodities cannot be considered a homogeneous asset class. Segmentation characteristics of commodity markets disappear in times of financial crises, reducing their substitutability as an investment portfolio for asset diversification purposes. Through our test for Granger causality, we find the existence of transmission during a financial crisis. Volatility spillover effect also plays a major role as transmission mechanisms. After the collapse of Lehman Brothers, commodities decoupled from the VIX rather soon, and there is an increase in correlation with the CDS. In addition, we find the decoupling effect of most commodities show insignificant correlations with the Dow Jones, VIX and CDS after the Greek debt restructuring.
Journal: Applied Economics
Pages: 4666-4689
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164816
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164816
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Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4666-4689
Template-Type: ReDIF-Article 1.0
Author-Name: Marion Robert
Author-X-Name-First: Marion
Author-X-Name-Last: Robert
Author-Name: C. Jill Stowe
Author-X-Name-First: C. Jill
Author-X-Name-Last: Stowe
Title: Ready to run: price determinants of thoroughbreds from 2 year olds in training sales
Abstract:
This article utilizes data from the complete set of U.S. thoroughbred 2-year-old in-training sales held in 2013 and estimates the determinants of prices for 1806 two-year-old thoroughbreds. The results reveal that the time in which these prospective racehorses run a standardized distance is the most statistically significant determinant of market price. Other individual horse characteristics, pedigree quality variables and sale quality are also found to be price determinants. An additional result of interest is the significant premium buyers are willing to pay for horses by sires of unknown quality.
Journal: Applied Economics
Pages: 4690-4697
Issue: 48
Volume: 48
Year: 2016
Month: 10
X-DOI: 10.1080/00036846.2016.1164817
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1164817
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Handle: RePEc:taf:applec:v:48:y:2016:i:48:p:4690-4697
Template-Type: ReDIF-Article 1.0
Author-Name: Dörte Heger
Author-X-Name-First: Dörte
Author-X-Name-Last: Heger
Title: Decomposing differences in health and inequality using quasi-objective health indices
Abstract:
People in Canada and the United States often make claims regarding whose country has a better health system. Several researchers have attempted to address this question by analysing subjective health measures in the two countries, thus assuming a common definition of ‘good’ health. Using data from the Joint Canada/US Survey of Health, which provides rich and comparable health information for the two countries, I generate two quasi-objective health indices and show that Canadians and Americans define ‘good’ health differently. After controlling for cross-country reporting heterogeneity, health differences between Americans and Canadians are eliminated for intermediate health statuses, while health differences at the tails of the health distribution lead to slightly better average population health in Canada. With respect to health inequality, my results show that income and education gradients increase steeply with poor health in both countries. Hence, considering differences along the health distribution is crucial when assessing population health or health inequality.
Journal: Applied Economics
Pages: 2844-2859
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412073
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412073
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Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2844-2859
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald Ravinesh Kumar
Author-X-Name-First: Ronald Ravinesh
Author-X-Name-Last: Kumar
Author-Name: Peter Josef Stauvermann
Author-X-Name-First: Peter Josef
Author-X-Name-Last: Stauvermann
Author-Name: Nikeel N. Kumar
Author-X-Name-First: Nikeel N.
Author-X-Name-Last: Kumar
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Title: Revisiting the threshold effect of remittances on total factor productivity growth in South Asia: a study of Bangladesh and India
Abstract:
Both Bangladesh and India are among the top recipient of remittances in absolute terms. However, in relative terms – remittances as a per cent of GDP – the two countries stand at 6.1% and 2.8%, respectively, well below the levels of the top 10 recipients. In this article, we explore the effect of remittances on the total factor productivity (TFP) growth considering Bangladesh and India, as reference countries over the periods 1980–2012 and 1977–2012, respectively. We examine the presence of a long-run association between remittances and TFP using a number of tests. The results indicate that remittances have threshold effects on TFP growth in both countries. Despite the two countries receiving substantial amount of remittances, we note that Bangladesh has a U-shaped relationship whereas India has an inverted U-shaped relationship with TFP growth. For Bangladesh, a minimum threshold of remittances (% GDP) is 5.3% and for India, a tipping point of remittances (% GDP) is at 1.8%. The causality tests confirm a bidirectional effect, which implies that remittances and TFP growth are mutually reinforcing. Interestingly, while the two economies have similar remittances impact in regards to causality, the study highlights two different tipping points of remittances.
Journal: Applied Economics
Pages: 2860-2877
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412074
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412074
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Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2860-2877
Template-Type: ReDIF-Article 1.0
Author-Name: Narelle Gordon
Author-X-Name-First: Narelle
Author-X-Name-Last: Gordon
Author-Name: Qiongbing Wu
Author-X-Name-First: Qiongbing
Author-X-Name-Last: Wu
Title: Informed trade, uninformed trade and stock price delay
Abstract:
The probability of informed trading (PIN), a measure of information-based trading risk, has been broadly applied to empirical studies on asset pricing. However, it is still controversial whether PIN measures exclusively the risk of firm-specific private information or it also captures the private interpretation of market wide public information. This article examines the relevance of PIN to the delayed response of stock prices to market-wide information. We find that PIN significantly explains individual stock price delay even controlling for size, liquidity and risk, and low-PIN stock prices adjust to market information more rapidly not only because of a notably high level of informed trading but also an even much higher level of uninformed trading. Our findings support the notion that PIN also captures the private skilled interpretation of public common factor information by sophisticated investors, and provide new empirical evidence on how information-based trading affects the speed at which stock prices adjust to information.
Journal: Applied Economics
Pages: 2878-2893
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412075
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412075
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Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2878-2893
Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Cerda
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Cerda
Author-Name: Álvaro Silva
Author-X-Name-First: Álvaro
Author-X-Name-Last: Silva
Author-Name: José Tomás Valente
Author-X-Name-First: José Tomás
Author-X-Name-Last: Valente
Title: Impact of economic uncertainty in a small open economy: the case of Chile
Abstract:
We construct the first news-based economic uncertainty index for Chile, which allowed us to rebuild 23 years of the history of economic uncertainty in the country and quantify its impact on the economy. We find that an increase in economic uncertainty conveys a fall in GDP, investment, and employment, even after accounting for the small open economy nature of Chile. In contrast to previous studies for big and developed economies, we do not find evidence of an overshooting effect when uncertainty dissipates; therefore, increases in economic uncertainty have negative effects on the economy, even in the long-run. Our estimates suggest that these impacts range from 10% to 20% for aggregate investment, 2.5% to 5% for GDP, and 1.3% to 4.2% for employment. Extensions suggest that economic uncertainty affects both mining and non-mining investment, with the former showing a more pronounced decline. We also find that the bulk of effect of economic uncertainty on aggregate investment is via private investment, with some short-run impacts on public investment. Moreover, compared to the GDP response, aggregate consumption responds in almost the same way to an economic uncertainty shock.
Journal: Applied Economics
Pages: 2894-2908
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412076
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412076
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Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2894-2908
Template-Type: ReDIF-Article 1.0
Author-Name: Dong Hee Suh
Author-X-Name-First: Dong Hee
Author-X-Name-Last: Suh
Author-Name: Charles B. Moss
Author-X-Name-First: Charles B.
Author-X-Name-Last: Moss
Title: Examining crop price effects on production decision and resource allocation: an ex-ante approach
Abstract:
This article examines the output price effects on the US crop production, employing an ex-ante approach to the differential systems of input demand and output supply. The estimation results of the differential input demand show that the expansion of crop production leads to an increase in acreage (i.e. extensive margin) and a proportional rise in input usage improving yield per acre (i.e. intensive margin). The substitutable relationship between fertilizer and land supports that crop producers have an option to choose either intensive or extensive margin in response to changes in their relative prices. In addition, the estimation results of the differential output supply highlight that the composition of crop supply can be altered by changes in ex-ante crop prices. The estimation results suggest that crop producers substitute corn supply for the supply of cotton, wheat and soybeans or vice versa. Based on the estimated elasticities, the decompositions of profit-maximizing input demand are conducted, which reveals that a change in ex-ante crop prices is associated closely with resource reallocation.
Journal: Applied Economics
Pages: 2909-2919
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412077
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412077
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Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2909-2919
Template-Type: ReDIF-Article 1.0
Author-Name: Martina Lawless
Author-X-Name-First: Martina
Author-X-Name-Last: Lawless
Author-Name: Daire McCoy
Author-X-Name-First: Daire
Author-X-Name-Last: McCoy
Author-Name: Edgar L. W. Morgenroth
Author-X-Name-First: Edgar L. W.
Author-X-Name-Last: Morgenroth
Author-Name: Conor M. O”Toole
Author-X-Name-First: Conor M.
Author-X-Name-Last: O”Toole
Title: Corporate tax and location choice for multinational firms
Abstract:
This article examines the effects of corporate tax on these location decisions of newly established multinational subsidiaries across 26 European countries over an 8-year period. We contribute to the existing literature by examining the effects of a non-linear response of firm location decisions to changes in the tax rate. We also show that there are large variations in the sensitivity to tax rates across sectors and firm size groups. In particular, financial sector firms are more than twice as sensitive to changes in corporation tax rates relative to other sectors. Our baseline result is a finding that a 1% increase in the statutory or policy rate of corporation tax would lead to a reduction in the conditional location probability of 0.68%. Using the effective average tax rate, the marginal effect implies a reduction in the location probability of 1.15% following a 1% increase in the tax rate. Although overall tax has the expected negative effect on location probability, the marginal effect of an increase is lower at higher rates of tax.
Journal: Applied Economics
Pages: 2920-2931
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412078
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412078
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Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2920-2931
Template-Type: ReDIF-Article 1.0
Author-Name: Honghai Yu
Author-X-Name-First: Honghai
Author-X-Name-Last: Yu
Author-Name: Libing Fang
Author-X-Name-First: Libing
Author-X-Name-Last: Fang
Author-Name: Sunqi Zhang
Author-X-Name-First: Sunqi
Author-X-Name-Last: Zhang
Author-Name: Donglei Du
Author-X-Name-First: Donglei
Author-X-Name-Last: Du
Title: The role of the political cycle in the relationship between economic policy uncertainty and the long-run volatility of industry-level stock returns in the United States
Abstract:
In this study, we investigate how US economic policy uncertainty (EPU) drives the long-run components of volatilities in industry-level stock markets. We use a modified specification of GARCH-MIDAS and find that EPU increases the long-run volatility of the industrials and materials industries and decreases it in 4 of the 10 industries considered here: consumer staples, healthcare, information technology and materials. In addition, we add a dummy variable for the political cycle (PLC) to study whether the relationship between EPU and the volatility of industry returns is significantly different under different political regimes. The results imply that a Republican presidency dampens the effects of EPU on the long-run volatility of the consumer staples, healthcare and information technology industries. We also decompose the aggregated EPU into 11 category-specific EPUs to explore the detailed relationship between category-specific EPU and long-run volatility driven by aggregate EPU. The results for the category-specific EPU are consistent with the findings for the aggregate EPU. In particular, the weakened effect of PLC on the relationship between EPU and the long-run volatility of industry-level returns is also confirmed by MIDAS regression with beta weight scheme.
Journal: Applied Economics
Pages: 2932-2937
Issue: 26
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1412079
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1412079
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Handle: RePEc:taf:applec:v:50:y:2018:i:26:p:2932-2937
Template-Type: ReDIF-Article 1.0
Author-Name: Julio Mancuso
Author-X-Name-First: Julio
Author-X-Name-Last: Mancuso
Author-Name: Christis G. Tombazos
Author-X-Name-First: Christis G.
Author-X-Name-Last: Tombazos
Title: Export sensitivity to time delays and the pattern of international trade
Abstract:
A growing body of literature in the field of international trade highlights the increasing importance of the time delays associated with transporting goods over long distances and the differing effect that such delays have on traded goods that exhibit diverse degrees of time-sensitivity. This literature also canvasses the likely changes in the pattern of trade in time-sensitive goods that are likely to have accompanied recent advances in transportation and information and communication technologies. However, the empirical research on these patterns has so far been exploratory and incomplete. We use U.S. import data, on both the intensive and the extensive margin of 70, five-digit level End-Use categories of goods, from 121 countries, during 1991–2017, in an effort to investigate how the pattern of trade in time-sensitive goods has changed in recent years. We identify three distinct features of such changes: (i) trade in time-sensitive goods has expanded dramatically in recent decades, (ii) the production of such goods agglomerates in close proximity to the demand centre, and (iii) regardless of proximity to the demand centre, developed countries have comparative advantage in time-sensitive exportables. These results shed light on a topic of considerable academic interest and have important policy relevant implications.
Journal: Applied Economics
Pages: 1409-1426
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1675862
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1675862
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Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1409-1426
Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Ladenburg
Author-X-Name-First: Jacob
Author-X-Name-Last: Ladenburg
Author-Name: Ole Bonnichsen
Author-X-Name-First: Ole
Author-X-Name-Last: Bonnichsen
Author-Name: Jürgen Meyerhoff
Author-X-Name-First: Jürgen
Author-X-Name-Last: Meyerhoff
Title: Trading off positive and negative service changes in childcare: a choice experiment using a latent class modelling approach
Abstract:
Theoretically, the choice of childcare mode should be influenced by the quality of the childcare attributes. However, such preference relations have been difficult to identify in past studies. One reason lies in the properties of the data collected, such as insufficient variation or strong correlation in the childcare qualities. To make a formal test of parent preferences for childcare qualities, we apply a choice experiment framework, construct a hypothetical market for childcare and ask 1,324 parents to act on the market. The results indicate that parents react positively and negatively to better and poorer childcare qualities, respectively. The results also indicate that the preferences are subject to substantial heterogeneity and that costs of losses in qualities are perceived as being far greater than the corresponding benefits of improvements.
Journal: Applied Economics
Pages: 1427-1445
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1675863
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1675863
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Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1427-1445
Template-Type: ReDIF-Article 1.0
Author-Name: Murat Tiniç
Author-X-Name-First: Murat
Author-X-Name-Last: Tiniç
Author-Name: Aslıhan Salih
Author-X-Name-First: Aslıhan
Author-X-Name-Last: Salih
Title: Informed trading, order flow shocks and the cross section of expected returns in Borsa Istanbul
Abstract:
This paper examines the relationship between information asymmetry and stock returns in Borsa Istanbul. For all stocks that are traded in Borsa Istanbul between March 2005 and April 2017, we estimate the probability of informed trading (PIN) to proxy for information asymmetry. Firm-level cross-sectional regressions indicate a statistically insignificant relationship between PIN estimates and future returns. Moreover, univariate and multivariate portfolio analyses assert that investors that hold stocks that have high information asymmetry do not obtain significant future returns. Consequently, our results suggest that information asymmetry proxied by PIN is a firm-specific risk and can be eliminated with portfolio diversification. Findings are robust to different factorizations in estimating PIN and free of any bias due to trade classification algorithms, boundary solutions, floating-point exceptions and symmetric order flow shocks.
Journal: Applied Economics
Pages: 1446-1459
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676386
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676386
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Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1446-1459
Template-Type: ReDIF-Article 1.0
Author-Name: Octavio Fernández-Amador
Author-X-Name-First: Octavio
Author-X-Name-Last: Fernández-Amador
Author-Name: Joseph F. Francois
Author-X-Name-First: Joseph F.
Author-X-Name-Last: Francois
Author-Name: Doris A. Oberdabernig
Author-X-Name-First: Doris A.
Author-X-Name-Last: Oberdabernig
Author-Name: Patrick Tomberger
Author-X-Name-First: Patrick
Author-X-Name-Last: Tomberger
Title: Economic growth, sectoral structures, and environmental methane footprints
Abstract:
We analyze the impacts of economic growth on methane emissions per capita at the sectoral level for the period 1997–2014. We cover three stages of the supply chain, distinguishing between emissions embodied in production, final production, and consumption. We investigate the effects of economic growth on two components of methane emissions per capita, namely methane emissions per unit of value added and value added per capita. We uncover substantial heterogeneity across sectors. Economic growth led to expansions of economic activity in all sectors but reduced the methane intensity of sectoral value added in some sectors. In sectors that experienced pronounced reductions in methane intensity, economic growth did not strongly affect emissions per capita. However, in the absence of large methane-intensity gains, economic growth raised emission per capita substantially.
Journal: Applied Economics
Pages: 1460-1475
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676387
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676387
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Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1460-1475
Template-Type: ReDIF-Article 1.0
Author-Name: Chiou-Fa Lin
Author-X-Name-First: Chiou-Fa
Author-X-Name-Last: Lin
Author-Name: Cheng-Huei Chiao
Author-X-Name-First: Cheng-Huei
Author-X-Name-Last: Chiao
Title: Widening price limit effects: evidence from an emerging stock market
Abstract:
This study investigates the impact of the widening of price limits on the Taiwan Stock Exchange, from 7% to 10%, by comparing the differences in performance with the different price limit levels. The empirical results show that after the event: (1) the quoted and effective spreads increased, including the components of realized spread and information asymmetry; (2) the trade-related and quote-related standard deviations and the price discovery became larger. Our outcomes indicate that the widening of price limits was disadvantageous to liquidity, but helpful for price discovery. These results imply that wider price limits are not necessarily always better than narrow price limits in every respect, but that the optimal level of price limits should be based upon the regulators’ intended goals.
Journal: Applied Economics
Pages: 1476-1486
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676388
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676388
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Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1476-1486
Template-Type: ReDIF-Article 1.0
Author-Name: Jamal Ali Al-Khasawneh
Author-X-Name-First: Jamal Ali
Author-X-Name-Last: Al-Khasawneh
Author-Name: Kameleddine Benameur
Author-X-Name-First: Kameleddine
Author-X-Name-Last: Benameur
Author-Name: Mohammed Z Shariff
Author-X-Name-First: Mohammed Z
Author-X-Name-Last: Shariff
Author-Name: Khiyar Abduallah Khiyar
Author-X-Name-First: Khiyar Abduallah
Author-X-Name-Last: Khiyar
Title: Methods of payment in US banks’ acquisition: efficiency perspectives
Abstract:
Does the efficiency classification of acquirers have any effect on the method of payment they select for their acquisition, and does the selected method of payment have any future efficiency consequences? These two questions have never been answered. The objective of this article is to examine the effect of the medium of exchange that US banks use on the consequent cost, revenue, and profit efficiencies of mergers and acquisitions for the period from 1992 to 2003. The results indicate that highly efficient acquirers lose less efficiency when using stocks in financing their acquisitions, while the least efficient acquirers only gain efficiency when mixing stocks with cash in financing their acquisitions. The distributional dynamics in the results of the acquirers’ post-merger profit efficiency show no changes in profit efficiency over time when banks use stock financing but trends towards efficiency loss when using pure cash financing and loses the most when mixing stocks with cash. The contribution of this article is a guideline on the characteristics of efficiency to decision-makers for selecting the medium of exchange in friendly acquisitions given the consequent changes in strategic efficiency after acquisitions.
Journal: Applied Economics
Pages: 1487-1501
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676389
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676389
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Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1487-1501
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas H.W. Ziesemer
Author-X-Name-First: Thomas H.W.
Author-X-Name-Last: Ziesemer
Title: Can we have growth when population is stagnant? Testing linear growth rate formulas of non-scale endogenous growth models
Abstract:
We sub-divide scale-invariant fully or semi-endogenous growth models into six sub-categories for formulas relating steady-state growth rates of income per capita and the growth rate of the population depending on the properties of slopes and intercepts. We capture their steady-state relation by a long-term relation in panel vector-error-correction models for 16 countries and estimate the 16 models simultaneously allowing successively for more heterogeneity. Under slope homogeneity, the slope and intercepts of the growth equations are positive in this setting. However, allowing for heterogeneity there are two main groups of countries: those with non-positive slopes and positive intercepts are a large majority supporting fully endogenous growth; those with positive slopes and zero intercepts are a smaller group supporting semi-endogenous growth. Results therefore favour fully over semi-endogenous growth with and without slope homogeneity and allow for growth rate policies. The more frequent case is that long-run growth can remain positive if population stops growing. Analysis of cross-unit cointegration suggests that long-run results are internationally connected.
Journal: Applied Economics
Pages: 1502-1516
Issue: 13
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676391
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676391
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Handle: RePEc:taf:applec:v:52:y:2020:i:13:p:1502-1516
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Hirsch
Author-X-Name-First: Stefan
Author-X-Name-Last: Hirsch
Author-Name: Giulia Tiboldo
Author-X-Name-First: Giulia
Author-X-Name-Last: Tiboldo
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Title: A tale of two Italian cities: brand-level milk demand and price competition
Abstract:
We apply the BLP random coefficient logit model demand model to fluid milk sales data from two north-south Italian cities: Turin and Naples. By virtue of their location and socioeconomic differences, these cities provide a natural experiment for contrasting consumer choices and retail market power related to milk physical and marketing characteristics. Results reveal that, regardless of location, consumers negatively value price increases, fat content and ultra-high temperature (UHT) treatment. However, location matters with respect to brand and type of milk purchased. While in Turin (the higher-income region) demand for the leading manufacturers’ brands is the most price inelastic, in Naples consumers have the lowest price elasticities in case of cheaper milk, often small manufacturer or private label brands. Unlike previous studies, we do not find price elasticities for private labels to be consistently lower (or markups to be higher) compared to manufacturer brands, indicating that private labels have reached maturity in these markets. Further, while demand for fresh milk is more price inelastic in Turin, it is more inelastic for UHT milk in Naples. Likewise, markups and Lerner indexes are higher for fresh milk in Turin and for UHT in Naples corresponding to the more inelastic demands under Bertrand price competition.
Journal: Applied Economics
Pages: 5239-5252
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486016
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486016
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Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5239-5252
Template-Type: ReDIF-Article 1.0
Author-Name: Simona Ferraro
Author-X-Name-First: Simona
Author-X-Name-Last: Ferraro
Author-Name: Jaanika Meriküll
Author-X-Name-First: Jaanika
Author-X-Name-Last: Meriküll
Author-Name: Karsten Staehr
Author-X-Name-First: Karsten
Author-X-Name-Last: Staehr
Title: Minimum wages and the wage distribution in Estonia
Abstract:
Abstract: This article studies how changes in the statutory minimum wage have affected the wage distribution in Estonia, a post-transition country with little collective bargaining and relatively large wage inequality. The analyses show that the minimum wage has had substantial spillover effects on wages in the lower tail of the distribution; the effects are most pronounced up to the twentieth percentile and then decline markedly. The minimum wage has contributed to lower wage inequality and this has particularly benefitted low-wage segments of the labour market such as women and the elderly. Interestingly, the importance of the minimum wage for the wage distribution was smaller during the global financial crisis than before or after the crisis.
Journal: Applied Economics
Pages: 5253-5268
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486017
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486017
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Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5253-5268
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements
Author-X-Name-First: Kenneth W.
Author-X-Name-Last: Clements
Author-Name: Haiyan Liu
Author-X-Name-First: Haiyan
Author-X-Name-Last: Liu
Author-Name: Yashar Tarverdi
Author-X-Name-First: Yashar
Author-X-Name-Last: Tarverdi
Title: Alcohol consumption, censorship and misjudgement
Abstract:
In the study of the economic determinants of alcohol consumption, there is an under-appreciated issue of sample selectivity as consumption is often not fully observed. Sample selectivity involves ignoring consumption below a censorship cut-off level. This article estimates a demand system for beer, wine and spirits with and without allowance for selectivity. Then using a simulation approach, it examines the impact of misjudgement in the censorship level on the estimated demand parameters. A mean squared error (MSE) criterion is suggested for determining the appropriate censorship level.
Journal: Applied Economics
Pages: 5269-5276
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486025
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486025
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Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5269-5276
Template-Type: ReDIF-Article 1.0
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Román Ferrer
Author-X-Name-First: Román
Author-X-Name-Last: Ferrer
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Rania Jammazi
Author-X-Name-First: Rania
Author-X-Name-Last: Jammazi
Title: Industry-level determinants of the linkage between credit and stock markets
Abstract:
This paper examines the relationship between US credit default swaps (CDS) and stock returns on an industry-wide basis across a number of investment horizons, with particular focus on the major determinants of such a relationship. Wavelet analysis is first applied to extract the CDS–stock wavelet correlation for each US industry. Then, Bayesian Model Averaging is employed to identify the key driving factors of the industry CDS–stock wavelet correlations at short- and long-term horizons. The empirical results indicate that the wavelet correlations between the industry CDS and stock returns are primarily negative over time and across time scales. Moreover, the CDS–stock correlation at longer horizons exhibits a much more stable pattern than its counterpart at shorter time frames. The results also demonstrate that the volatility of US Treasury and stock markets, as measured by the MOVE and VIX indices, respectively, the volatility of volatility, as captured by the VVIX index, and US economic policy uncertainty, as measured by the EPU index, are the most robust determinants of the correlation between CDS and stock returns at shorter and longer horizons for most US industries. In contrast, the Fama–French systematic equity factors exhibit a practically negligible explanatory power on the CDS–stock link.
Journal: Applied Economics
Pages: 5277-5301
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486986
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486986
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Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5277-5301
Template-Type: ReDIF-Article 1.0
Author-Name: Asadul Islam
Author-X-Name-First: Asadul
Author-X-Name-Last: Islam
Author-Name: Steven Stillman
Author-X-Name-First: Steven
Author-X-Name-Last: Stillman
Author-Name: Christopher Worswick
Author-X-Name-First: Christopher
Author-X-Name-Last: Worswick
Title: Can immigrants insure against shocks as well as the native-born?
Abstract:
We examine the impact of job displacement and serious health problems on multiple measures of individual and household well-being using longitudinal data. We extend the previous literature by examining whether these shocks have differential effects for the native-born and immigrants and whether shock mitigation strategies and their effectiveness differ by immigration status. Our results suggest that both immigrants and native-born individuals have access to similar institutional and other formal and informal risk-sharing arrangements such that they are able to mitigate shocks against job loss or illness almost equally.
Journal: Applied Economics
Pages: 5302-5315
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486987
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486987
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Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5302-5315
Template-Type: ReDIF-Article 1.0
Author-Name: Hamidreza Ghorbani Dastgerdi
Author-X-Name-First: Hamidreza
Author-X-Name-Last: Ghorbani Dastgerdi
Author-Name: Zarinah Binti Yusof
Author-X-Name-First: Zarinah Binti
Author-X-Name-Last: Yusof
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Title: Nexus between economic sanctions and inflation: a case study in Iran
Abstract:
Conventional studies have applied dummy variables to analyse the relationship between economic sanctions and inflation while we construct an index which is called Trade-Financial Sanctions (TF index). TF Index is a liner combination of indices which includes trade openness and foreign investment by applying the principal component model. Through the TF index and market exchange rate the impact of economic sanctions on inflation is analysed in the three phases of sanctions; free sanctions, heavy sanctions, and light sanctions. The results illustrate that the TF index decreases inflation when the Iran’s economy experiences free sanctions or light sanctions relative to when the economy is in heavy sanctions. Heavy sanctions create instability in the market exchange rates and widening the gap between the market and the official exchange rates. Furthermore, economic sanctions increase expected inflation among the people and drive higher inflation. Therefore, these results suggest that the government should work more seriously to solve the main obstacles of trade and investment inflows imposed by the economic sanctions.
Journal: Applied Economics
Pages: 5316-5334
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486988
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486988
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Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5316-5334
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Imran Chaudhry
Author-X-Name-First: Muhammad Imran
Author-X-Name-Last: Chaudhry
Author-Name: Abdoul G. Sam
Author-X-Name-First: Abdoul G.
Author-X-Name-Last: Sam
Title: Herding behaviour and the declining value relevance of accounting information: evidence from an emerging stock market
Abstract:
This article sheds light on the underlying mechanisms behind the changes in the value relevance of accounting information in the Karachi Stock Exchange (KSE) during the 1999–2010 period. We find that neither changes in earnings quality nor the earnings lack of timeliness hypothesis can explain the decline in the value relevance of accounting information in the KSE. Based on the stylized facts associated with the growth of the KSE and the broader economics literature, we argue that the reduction in the explanatory power of accounting information vis-à-vis stock returns was caused by herding behaviour. Empirical estimates from state-space model of herding behaviour confirm the existence of herding, and we find that the value relevance of accounting information is significantly lower in periods characterized by herding behaviour. This article is also amongst the first attempts to empirically demonstrate that an expansionary monetary policy and increases in foreign portfolio investment lead to increased levels of herding.
Journal: Applied Economics
Pages: 5335-5353
Issue: 49
Volume: 50
Year: 2018
Month: 10
X-DOI: 10.1080/00036846.2018.1486989
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486989
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Handle: RePEc:taf:applec:v:50:y:2018:i:49:p:5335-5353
Template-Type: ReDIF-Article 1.0
Author-Name: Satish Kumar
Author-X-Name-First: Satish
Author-X-Name-Last: Kumar
Author-Name: Rajesh Pathak
Author-X-Name-First: Rajesh
Author-X-Name-Last: Pathak
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Are exchange rates interdependent? Evidence using wavelet analysis
Abstract:
We examine the co-movement in daily returns of USD–INR, EUR–INR, GBP–INR, and JPY–INR currency pair futures contracts traded on the National Stock Exchange of India (NSE) using the wavelet cohesion approach. This study contributes to the literature by examining the scantly studied area of co-movement in exchange rates and using the wavelet approach, which allows us to analyse time–frequency-wise co-movement of the time series. The empirical results indicate that the currency futures markets are nearly perfectly integrated in the long run (monthly, quarterly and biannual scales) offering little potential gains from international portfolio diversification. The discrepancies between currency futures markets are small and almost fade away within 3–6 months. Moreover, international currency diversification might offer relatively higher potential gains at intraweek, weekly, and fortnightly time horizons owing to lower correlations among the currencies under consideration. Finally, our multiple-wavelet correlation and cross-correlation analysis shows that GBP acts as a potential leader/follower across scales. The results of our analysis indicate the dynamic pattern of co-movement among the major currency futures contracts, which provides several implications for portfolio managers and international investors participating in the Indian market.
Journal: Applied Economics
Pages: 3231-3245
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257108
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257108
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Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3231-3245
Template-Type: ReDIF-Article 1.0
Author-Name: David E. Allen
Author-X-Name-First: David E.
Author-X-Name-Last: Allen
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Robert Powell
Author-X-Name-First: Robert
Author-X-Name-Last: Powell
Author-Name: Abhay K. Singh
Author-X-Name-First: Abhay K.
Author-X-Name-Last: Singh
Title: Volatility spillover and multivariate volatility impulse response analysis of GFC news events
Abstract:
This article applies two measures to assess spillovers across markets: the Diebold and Yilmaz’s (2012) spillover index and the Hafner and Herwartz’s (2006) analysis of multivariate GARCH models using volatility impulse response analysis. We use two sets of data, daily realized volatility (RV) estimates taken from the Oxford-Man RV library, for the S&P500 and the FTSE, plus 10 years of daily returns series for the New York Stock Exchange Index and the FTSE 100 index. Both data sets capture both the global Financial Crisis (GFC) and the subsequent European Sovereign Debt Crisis (ESDC). The spillover index captures the transmission of volatility to and from markets, plus net spillovers. The Volatility Impulse Responses (VIRF) have to be calibrated to conditional volatility estimated at a particular point in time. We explore the impact of three different shocks, the onset of the GFC, the height of the GFC, and the impact of the ESDC. Our modelling includes leverage and asymmetric effects applying a multivariate GARCH model, and further analysis using both BEKK and diagonal BEKK (DBEKK) models. We find the impact of negative shocks is larger, but shorter in duration, in this case a difference between 3 and 6 months.
Journal: Applied Economics
Pages: 3246-3262
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257210
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257210
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Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3246-3262
Template-Type: ReDIF-Article 1.0
Author-Name: Amar I. Anwar
Author-X-Name-First: Amar I.
Author-X-Name-Last: Anwar
Author-Name: Mazhar Y. Mughal
Author-X-Name-First: Mazhar Y.
Author-X-Name-Last: Mughal
Title: Out of Africa? Locational determinants of South African cross-border mergers and acquisitions
Abstract:
South Africa is the Africa’s biggest source of outward foreign direct investment. This study examines the principal locational motives of cross-border mergers and acquisitions CBMA by South African firms for the 1990–2014 period. The role of inter-country cultural and economic linkages is also studied. Firm-level data of South African merger and acquisition activities in 74 host countries are used to estimate a number of model specifications that control for host-country economic, geographical, cultural and institutional characteristics. Estimations are carried out using random-effects negative binomial panel model. Capturing the host-economy market and enhancing efficiency are found to be the two major motives driving South African corporations’ CBMA activities. Natural resources acquisition seems a less important motive, while strategic assets such as patents and technology do not appear to be attractive. The role of cultural and economic linkages between the home and the host country is found to be substantial. South African firms prefer investing in Africa, particularly in countries bordering South Africa. In light of the study’s findings, South African CBMA activities can be compared with those from other emerging economies.
Journal: Applied Economics
Pages: 3263-3279
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1257211
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1257211
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Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3263-3279
Template-Type: ReDIF-Article 1.0
Author-Name: Axel Grossmann
Author-X-Name-First: Axel
Author-X-Name-Last: Grossmann
Author-Name: Chris Paul
Author-X-Name-First: Chris
Author-X-Name-Last: Paul
Author-Name: Marc W. Simpson
Author-X-Name-First: Marc W.
Author-X-Name-Last: Simpson
Title: An evaluation of the equilibrium value of the euro, its predecessors and their constituent currencies based on economic fundamentals
Abstract:
This study presents constructed equilibrium exchange rates (EERs) of the euro and its predecessors the European Unit of Account and the European Currency Unit, as well as the euro’s member states using a relative version of purchasing power parity (PPP) equilibrium. The revealed patterns of over- and undervaluation demonstrate how well suited the northern member states, in contrast to the southern states, were for the monetary union. Moreover, a relative persistent overvaluation for Greece and Portugal suggests that their ambition to join the euro reduced their competitiveness. The constructed EERs of the euro suggest the European Commission was able to set the initial value of the euro with a high degree of accuracy. Furthermore, the EERs indicate a successive strengthening of the fundamental value of the euro versus the U.S. dollar from 1999 to 2015. The analysis shows a close correlation between the deviations from equilibrium and the events of Greece’s sovereign debt crisis. In addition, the presented graphs show strong support for the PPP hypothesis. The results are robust to different constructed EERs and offer a guide to international market participants interested in the general equilibrium path of the euro and its predecessors.
Journal: Applied Economics
Pages: 3280-3312
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259747
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259747
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Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3280-3312
Template-Type: ReDIF-Article 1.0
Author-Name: Felisitas Defung
Author-X-Name-First: Felisitas
Author-X-Name-Last: Defung
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Economic liberalization and sources of productivity growth in Indonesian Banks: is it efficiency improvement or technological progress?
Abstract:
This article investigates the sources of productivity growth in the Indonesian banking sector during 23 years period from 1993 to 2015. The industry has gone through several episodes of policy reforms, starting from the radical deregulation in the late 1980s, the restructuring period following the 1997 Asian financial crisis, the consolidation period in the mid-2000s to the economic expansion in the 2010s. Using panel data of 98 commercial banks, we explore productivity growth using Malmquist indices complemented with bootstrapping technique to provide measures of the statistical precision of the results. The Malmquist index measures total factor productivity, efficiency change and technological change. Results show that productivity improves moderately and appears to be less volatile towards the end of the period. Furthermore, efficiency change tends to be the main source of productivity improvement rather than technological change.
Journal: Applied Economics
Pages: 3313-3327
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259748
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259748
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Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3313-3327
Template-Type: ReDIF-Article 1.0
Author-Name: Aviad Tur-Sinai
Author-X-Name-First: Aviad
Author-X-Name-Last: Tur-Sinai
Author-Name: Dmitri Romanov
Author-X-Name-First: Dmitri
Author-X-Name-Last: Romanov
Author-Name: Noam Zussman
Author-X-Name-First: Noam
Author-X-Name-Last: Zussman
Title: The true effect of students’ employment on the duration of studies
Abstract:
We examine the effect of the first-degree students’ employment on the prolongation of their studies. When employing a popular instrumental variable, the regional unemployment rate, we find a negative impact of students’ employment on duration of studies. Then, adding a predetermined IV – the individual’s employment prior to the beginning of academic studies – turns the estimate positive. Furthermore, we find that the relationship between the extent of students’ employment and duration of their studies depends on their age: among the younger students (aged 22–26), the extent of employment has no effect on the duration of studies, while among the older students, the effect is positive and statistically significant.
Journal: Applied Economics
Pages: 3328-3340
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259749
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259749
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Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3328-3340
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy M. Diette
Author-X-Name-First: Timothy M.
Author-X-Name-Last: Diette
Author-Name: Manu Raghav
Author-X-Name-First: Manu
Author-X-Name-Last: Raghav
Title: Does early bird catch the worm or a lower GPA? Evidence from a liberal arts college
Abstract:
Research in psychology has shown that early morning classes are not conducive to learning because of the peculiar sleep cycles of adolescents and young adults that cause them to be especially groggy in the morning. Our study examines the relationship between the times that classes are offered and the grades that students in these classes earn at a highly selective liberal arts college. Our main findings are that morning classes are harmful for student achievement. Grades are especially lower for classes that were scheduled at 8 am and 9 am. Moreover, while students of both genders are adversely affected by early morning courses, the effects are particularly pronounced for male students. This institution assigns students randomly to different sections of the same course, thus creating a quasi-natural experiment and enabling us to control for unobserved characteristics of students. In addition, we include student and faculty fixed effects.
Journal: Applied Economics
Pages: 3341-3350
Issue: 33
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259750
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Handle: RePEc:taf:applec:v:49:y:2017:i:33:p:3341-3350
Template-Type: ReDIF-Article 1.0
Author-Name: Bassem Kamar
Author-X-Name-First: Bassem
Author-X-Name-Last: Kamar
Author-Name: Damyana Bakardzhieva
Author-X-Name-First: Damyana
Author-X-Name-Last: Bakardzhieva
Author-Name: Mohamed Goaied
Author-X-Name-First: Mohamed
Author-X-Name-Last: Goaied
Title: Effects of pro-growth policies on employment: evidence of regional disparities
Abstract:
The main objective of our research is to study the direct impact of pro-growth economic policies on employment creation globally and regionally, as evidence has countered policy-makers’ expectation that output growth leads automatically to job creation. We innovate by using the ratio of employment to the population above 25 years as dependent variable instead of the customary employment elasticity. We apply generalized methods of moments’ econometrics on dynamic panel data models and find that growth stimulates employment creation on average across 76 countries. The policies promoting private sector credit, investments, openness, services, education spending, tertiary enrollment, and a fixed exchange rate are the ones that create employment. Larger government size undermines job creation, while policies promoting FDI and industrial development fail to stimulate employment. However, we establish that the effect of pro-growth policies on employment varies significantly across regions, with evidence of weaker links between economic policies and employment in Sub-Saharan Africa and the Middle East.
Journal: Applied Economics
Pages: 4337-4367
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591596
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Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4337-4367
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Magee
Author-X-Name-First: Stephen
Author-X-Name-Last: Magee
Author-Name: Hongshik Lee
Author-X-Name-First: Hongshik
Author-X-Name-Last: Lee
Author-Name: Junyun Kim
Author-X-Name-First: Junyun
Author-X-Name-Last: Kim
Title: Evidence and explanation for the Tariff-lobbying paradox: endogenous Tariffs fall as protectionist lobbying rises
Abstract:
Recent empirical evidence suggests that U.S. protectionist lobbying expenditures rose while U.S. trade barrier fell. We find that the same result holds in our panel data sample from 28 countries between 1995 and 2011. We find two economic drivers cause the paradox between increasing protectionist lobbying and decreasing trade barrier. First, trade barriers decline as country capital-labour ratio endowments rise because of the rising political and economic power of capital that lobbies for free-trade. Second, factor intensities in production become more similar as factor-intensity convergence. This flattens the production possibility curve between exportable and import-competing production so that changes increased magnification in both factor rewards. In our panel, the magnification parameters are twice as high for capital as for labour (8.6 vs. 5.1). And, the elasticity of the capital return with respect to country capital-labour factor endowment ratios (.59) is nearly twice those of labour (.22). Increased magnification causes thus labour’s increased lobbying for protection to be more than offset by increased capital lobbying against protection. In short, while an increasing labour lobbies for protection as countries advance, combined tariff and non-tariff protection (OTRI) decline significantly as advanced countries get richer. This explains the tariff-protectionist-lobbying paradox.
Journal: Applied Economics
Pages: 4368-4384
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591604
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591604
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Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4368-4384
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M. Blau
Author-X-Name-First: Benjamin M.
Author-X-Name-Last: Blau
Author-Name: Todd G. Griffith
Author-X-Name-First: Todd G.
Author-X-Name-Last: Griffith
Author-Name: Ryan J. Whitby
Author-X-Name-First: Ryan J.
Author-X-Name-Last: Whitby
Title: Information in stock prices: the case of the 2016 U.S. presidential election
Abstract:
On the day before the 2016 U.S. presidential election, the odds of Hillary Clinton winning the presidency, according to political prediction markets, were above 90%. Surprisingly, Donald Trump won the Electoral College handily. In this study, we examine how movements in specific stock prices foreshadowed the eventual outcome. Specifically, we conduct a series of standard event-study tests focused on pharmaceutical companies, which became a focal point during the presidential campaign. Results show that while stocks of pharmaceutical companies significantly underperformed the market prior to the election, prices substantially increased beginning three days before the election outcome. This increase is both statistically significant and economically meaningful and robust to various event-study methodologies. These results suggest that some sectors of the stock market seemed to anticipate the election outcome.
Journal: Applied Economics
Pages: 4385-4396
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591608
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591608
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Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4385-4396
Template-Type: ReDIF-Article 1.0
Author-Name: Xuebing Yang
Author-X-Name-First: Xuebing
Author-X-Name-Last: Yang
Author-Name: Lili Chen
Author-X-Name-First: Lili
Author-X-Name-Last: Chen
Title: Physical productivity of new firms: it is not as high as it appears
Abstract:
This paper argues that the physical productivity of new firms is not as high as it is measured with conventional approaches. The overestimation is due to two reasons, both of which are related to the underestimation of production inputs of new firms. On the extensive margin, while conventional approaches implicitly assume the share of production costs in the total costs is the same for all firms, new firms spend a larger share of their costs on production. On the intensive margin, conventional approaches usually use capital stock as the proxy for capital input and tacitly assume a constant ratio between capital service and capital stock, whereas new firms tend to use their capital more intensively. Failure to incorporate the two facts leads to economically significant inflation in the measured physical productivity of new firms.
Journal: Applied Economics
Pages: 4397-4410
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591609
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Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4397-4410
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Camilo Galvis Ciro
Author-X-Name-First: Juan Camilo
Author-X-Name-Last: Galvis Ciro
Author-Name: Juan Camilo Anzoátegui Zapata
Author-X-Name-First: Juan Camilo
Author-X-Name-Last: Anzoátegui Zapata
Title: Disagreement in inflation expectations: empirical evidence for Colombia
Abstract:
The literature on expectation disagreements in emerging economies is scarce. This paper examines the disagreements in inflation expectations for the Colombian economy during the 2010–2017 period. We combine empirical tests with an analysis of a monthly survey of expectations of financial analysts in Colombia to obtain valuable evidence to formulate guidelines on the expectations modelling in developing economies. The findings indicate that disagreements present inertia and that inflation volatility increases disagreements. However, the central bank’s stance, as established through a press release, can reduce disagreement. Moreover, if central bank communication is clear and there is a credible inflation target, there tend to be fewer disagreements.
Journal: Applied Economics
Pages: 4411-4424
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591610
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591610
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Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4411-4424
Template-Type: ReDIF-Article 1.0
Author-Name: Madurika Nanayakkara
Author-X-Name-First: Madurika
Author-X-Name-Last: Nanayakkara
Author-Name: Sisira Colombage
Author-X-Name-First: Sisira
Author-X-Name-Last: Colombage
Title: Do investors in Green Bond market pay a premium? Global evidence
Abstract:
We examine the pricing difference of Green Bonds (GB) and conventional bonds (CBs) in capital markets worldwide. Credit spread is used to observe whether investors would like to pay a premium for GBs over CBs. This study uses panel data regression with hybrid model to analyse daily observations over the period 2016 to 2017. We employ Option-Adjusted spread (OAS) to measure the credit spreads of bonds while controlling for bond specific, macroeconomic and global factors that influence the spread. With the hybrid model used in the panel data analysis, we were able to capture the fixed-effects of variables in a random effect model. We find that GBs are traded at a premium of 63 basis points (BPS), compared with a comparable corporate bond issue. We find that the green label provides issuers an incentive to raise funds through issuing GBs while providing investors an opportunity to diversify their investments returns. Our findings provide several implications to the major stakeholders driving the GB market to scale up the market to finance the required level of global green investment needs. We stress an urgent need to support the growth of the GB market to achieve sustainable development through mitigating climate change challenges.Abbreviation GB: Green Bond; CB: Conventional Bond; YS: Yield Spread; BPS: Basis Points; OAS: Option-Adjusted Spread; PCSE: Panels Corrected Standard Errors; CPI: Consumer Price Index; GBPs: Green Bond Principles; CBS: Climate Bond Standard
Journal: Applied Economics
Pages: 4425-4437
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591611
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Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4425-4437
Template-Type: ReDIF-Article 1.0
Author-Name: Ran Tao
Author-X-Name-First: Ran
Author-X-Name-Last: Tao
Title: Fundraising under two-dimensional asymmetric information: the case of mindless donations
Abstract:
The paper develops a model of charity’s choice of fundraising method under two dimensions of asymmetric information, quality and purpose. The main implication from this model is a separating equilibrium where the higher-quality charity uses a traditional fundraising method, while the lower-quality one exploits a low-stakes, take-it- or leave-it, ‘mindless’ method. Empirical results support the hypothesis that charities of lower quality are more likely to adopt the mindless fundraising method. Even so, consumers still choose to give in the equilibrium, due to the small requested amount of mindless donations, which disincentivizes serious thinking by consumers. The mindless method, along with purpose uncertainty, has the potential to alleviate the free-riding problem that is characteristic of public good provision and is, therefore, welfare improving.
Journal: Applied Economics
Pages: 4438-4454
Issue: 40
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1593314
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1593314
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Handle: RePEc:taf:applec:v:51:y:2019:i:40:p:4438-4454
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Hussey
Author-X-Name-First: Andrew
Author-X-Name-Last: Hussey
Author-Name: Michael Jetter
Author-X-Name-First: Michael
Author-X-Name-Last: Jetter
Title: Long term trends in fair and unfair inequality in the United States
Abstract:
This article analyses the microeconomic sources of wage inequality in the United States from 1967–2012. Decomposing inequality into factors categorized by degree of personal responsibility, education explains over twice as much of inequality today as 45 years ago. However, neither hours worked nor education, industry, marital status, or geographical location can explain the rise in income inequality. In fact, ‘unfair’ inequality (income disparity derived from non-responsibility factors) has risen faster than ‘fair’ inequality (income disparity derived from responsibility factors), regardless of the set of variables chosen as fair sources of inequality. We further examine income inequalities within gender and racial groups, finding substantial heterogeneity. Overall, using micro data to understand the sources of inequality and how these changes over time can provide better information for policymakers motivated to combat rising inequality.
Journal: Applied Economics
Pages: 1147-1163
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213362
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213362
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Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1147-1163
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel J. Henderson
Author-X-Name-First: Daniel J.
Author-X-Name-Last: Henderson
Author-Name: Léopold Simar
Author-X-Name-First: Léopold
Author-X-Name-Last: Simar
Author-Name: Le Wang
Author-X-Name-First: Le
Author-X-Name-Last: Wang
Title: The three s of public schools: irrelevant inputs, insufficient resources and inefficiency
Abstract:
We examine the educational production function and efficiency of public school districts in Illinois. Using non-parametric kernel methods, we find that most traditional schooling inputs are irrelevant in determining test scores (even in a very general setting). Property tax caps are the only relevant factor that is related to districts’ financial constraints and have predominantly negative associations with test scores. Therefore, insufficient resources may be partially responsible for the lack of growth in test scores. For most other relevant inputs, we find substantial heterogeneity in the returns, which helps reconcile some of the puzzling results in the literature. We further find that there exist inefficiencies in school districts. Moreover, the level of test scores, commonly used as a measure of school effectiveness, (while related) differs substantially from our efficiency scores, and standard parametric approaches drastically underestimate school efficiency. We discuss the policy implications of our results.
Journal: Applied Economics
Pages: 1164-1184
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213363
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213363
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Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1164-1184
Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Joshua C. Hall
Author-X-Name-First: Joshua C.
Author-X-Name-Last: Hall
Author-Name: Maria Y. Tackett
Author-X-Name-First: Maria Y.
Author-X-Name-Last: Tackett
Title: Non-public competition and public school performance: evidence from West Virginia
Abstract:
In this study, we investigate whether non-public school enrolment affects the performance of public school districts. If homeschooling and private schools act as competition, public school districts test scores should be positively associated with non-public enrolment. Using data on West Virginia county school districts, and controlling for endogeneity with an instrumental variables approach, we find that a one standard deviation increase in relative non-public enrolment in a county is associated with statistically significant improvements in public school district test scores. Our findings thus confirm that non-public enrolment and the competition it provides act to improve, rather than impede, public school performance.
Journal: Applied Economics
Pages: 1185-1193
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213364
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213364
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Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1185-1193
Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Yop Oh
Author-X-Name-First: Dong-Yop
Author-X-Name-Last: Oh
Author-Name: Hyejin Lee
Author-X-Name-First: Hyejin
Author-X-Name-Last: Lee
Title: LM cointegration tests allowing for an unknown number of breaks: implications for the forward rate unbiasedness hypothesis
Abstract:
This article extends the Lagrange multiplier (LM) cointegration test proposed by Westerlund and Edgerton (WE 2007) by allowing for an unknown number of breaks. Monte Carlo simulations provide two main results. First, a loss of power in the LM cointegration tests is detected when potential multiple breaks are ignored. Second, the modified testing procedures do not affect the asymptotic distribution and major properties of the tests of WE under the null, but noticeably increase their testing power in presence of multiple breaks. We also provide empirical applications of the proposed tests for the forward rate unbiasedness hypothesis (FRUH). The results reveal that the FRUH does hold when the effects of the multiple structural breaks are taken into account.
Journal: Applied Economics
Pages: 1194-1203
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213366
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213366
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Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1194-1203
Template-Type: ReDIF-Article 1.0
Author-Name: Justin L. Davis
Author-X-Name-First: Justin L.
Author-X-Name-Last: Davis
Author-Name: Kevin Krieger
Author-X-Name-First: Kevin
Author-X-Name-Last: Krieger
Title: Preseason bias in the NFL and NBA betting markets
Abstract:
This study extends research in the sports gaming literature by examining the efficiency of betting markets related to preseason professional sporting events. Using NFL (1995–2014) and NBA (2005–2014) data from preseason games, we examine the pricing efficiency of point spreads in these markets and consider evidence of systematic mispricing. Findings suggest point spreads are too large in these situations, providing a profitable betting opportunity for those willing to systematically wager on underdogs. Similar findings are not seen within the context of NFL or NBA regular seasons. These findings are more pronounced as preseason point spreads become larger. Further stratification by week of the NFL preseason demonstrates that underdogs discontinue their superior performance for the one week (Week 3) in which clubs tend to expel a higher level of effort.
Journal: Applied Economics
Pages: 1204-1212
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213367
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213367
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Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1204-1212
Template-Type: ReDIF-Article 1.0
Author-Name: Yoonsuk Lee
Author-X-Name-First: Yoonsuk
Author-X-Name-Last: Lee
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Title: Permanent shocks and forecasting with moving averages
Abstract:
Moving averages are a common method of forecasting futures basis. We argue that the optimal lengths of moving averages depend on the frequency of structural breaks. A new stochastic time-series process including structural breaks is modelled by discrete probability distributions that capture the frequency and size of structural breaks. A permanent shock (means structural breaks in this article) is captured by a Poisson-jump or a Bernoulli-jump process, and a temporary shock is represented by a white noise process. Futures basis data are used to estimate the frequency of permanent shocks as well as the size of both shocks. Most shocks are permanent shocks. Since most shocks are permanent, the most recent year provides the best forecast and the optimal length of the moving average is one.
Journal: Applied Economics
Pages: 1213-1225
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213368
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213368
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Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1213-1225
Template-Type: ReDIF-Article 1.0
Author-Name: Philipp Grunau
Author-X-Name-First: Philipp
Author-X-Name-Last: Grunau
Author-Name: Marco Pecoraro
Author-X-Name-First: Marco
Author-X-Name-Last: Pecoraro
Title: Educational mismatch and promotions to managerial positions: a test of the career mobility theory
Abstract:
Career mobility theory suggests that given a certain occupation, schooling improves upward mobility in terms of promotion and wage growth. We are the first to test the implications of this theory for over- and undereducation by means of direct information about promotions to managerial positions. Using German administrative data entailing an employer-reported – and hence objective – measure of educational requirements, we show that overeducated workers are indeed more likely to be promoted and that this career mobility advantage is more pronounced in the early stages of their working lives. By contrast, undereducated workers are less likely to be promoted to managerial positions. Moreover, in terms of wage growth, while overeducated workers benefit more, undereducated workers benefit less from promotions than their well-matched educational peers. Altogether, these findings strongly support the career mobility theory. Furthermore, by differentiating between internal and external promotions, we provide evidence that promotions are more likely for overeducated workers within the establishment, whereas the opposite applies for undereducated workers. This finding indicates the relevance of both over- and undereducation as signals of true ability to other employers.
Journal: Applied Economics
Pages: 1226-1240
Issue: 12
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1213369
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213369
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Handle: RePEc:taf:applec:v:49:y:2017:i:12:p:1226-1240
Template-Type: ReDIF-Article 1.0
Author-Name: Edina I. Findrik
Author-X-Name-First: Edina I.
Author-X-Name-Last: Findrik
Author-Name: Ulrich B. Morawetz
Author-X-Name-First: Ulrich B.
Author-X-Name-Last: Morawetz
Title: Who would pay more for a fragrance-free laundry detergent? How health information affects valuation
Abstract:
Fragrance allergy is a lifelong condition, and the probability of being affected increases with frequent exposure to fragrance. Currently, fragrance-free laundry detergents are not common in supermarkets. We used a contingent valuation among Austrian consumers in a within-respondent treatment to estimate how willingness to pay is influenced by health information. We found that higher income groups have a higher willingness to pay for fragrance-free detergents. Informing consumers about health impacts substantially increases this difference. Our simulation shows that lower-income groups benefit from health information only if low-priced fragrance-free detergents are available on the market.
Journal: Applied Economics
Pages: 2453-2467
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545081
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545081
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Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2453-2467
Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Hundt
Author-X-Name-First: Steffen
Author-X-Name-Last: Hundt
Author-Name: Andreas Horsch
Author-X-Name-First: Andreas
Author-X-Name-Last: Horsch
Title: Sponsorship of the FIFA world cup, shareholder wealth, and the impact of corruption
Abstract:
The Fédération Internationale de Football Association's World Cup (FIFA WC) is one of the most popular sporting events in the world in general and Europe in particular, and famous for the extraordinary amount of sponsorship fees it attracts. To create value for the stockholders of FIFA’s respective commercial affiliates, these sponsorship expenses should be exceeded by (discounted) future cash flows in order to make this investment profitable. This study analyses return effects for stockholders of FIFA WC Commercial Affiliates, while distinguishing between several image scenarios pertaining to FIFA and applying several models for calculating abnormal returns. We find weak evidence for significant positive abnormal returns of announced FIFA sponsorships in case of a stable FIFA image across different return models. In contrast, we find negative abnormal returns when the latest corruption scandals around FIFA became public. We also detect negative price effects when Gianni Infantino was announced as new FIFA president. The image-related price effects become less pronounced for FIFA Partners and initially closed sponsorship contracts. Finally, we do not find any image-related spillover effects for main competitors of firms sponsoring FIFA.
Journal: Applied Economics
Pages: 2468-2491
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545082
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545082
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Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2468-2491
Template-Type: ReDIF-Article 1.0
Author-Name: Jaewoon Koo
Author-X-Name-First: Jaewoon
Author-X-Name-Last: Koo
Author-Name: Kyunghee Maeng
Author-X-Name-First: Kyunghee
Author-X-Name-Last: Maeng
Title: Investment opportunities and cash holdings of firms: an empirical study on Korean firms
Abstract:
We find that the cash flow sensitivity of cash holdings of firms whose investment opportunities are lower is significantly higher by examining a panel data of 898 Korean firms for 1999–2014. The cash flow sensitivity of investment is also found to be lower in case of low investment opportunity. Both findings suggest that firms decide to hold cash in response to an increase in cash flow when they do not have a good investment opportunity. Precautionary motive because of financial constraints and uncertainty, and agency problems, however, are not associated with the cash flow sensitivity of cash holdings. These findings imply that it is necessary to develop new investment opportunities to encourage firms to spend more cash in Korea.
Journal: Applied Economics
Pages: 2492-2500
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1545083
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1545083
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Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2492-2500
Template-Type: ReDIF-Article 1.0
Author-Name: David Byrne
Author-X-Name-First: David
Author-X-Name-Last: Byrne
Author-Name: Robert Kelly
Author-X-Name-First: Robert
Author-X-Name-Last: Kelly
Title: Bank asset quality & monetary policy pass-through
Abstract:
The funding mix of European firms is weighted heavily towards bank credit, which underscores the importance of efficient pass-through of monetary policy actions to lending rates faced by firms. Euro area pass-through has shifted from being relatively homogenous to being fragmented and incomplete since the financial crisis. Distressed loan books are a crisis hangover with direct implications for profitability, hampering banks ability to supply credit and lower loan pricing in response to reductions in the policy rate. This paper presents a parsimonious model to decompose the cost of lending and highlight the role of asset quality in diminishing pass-through. Using bank-level data over the period 2008–2014, we empirically test the implications of the model. We show that a one percentage point increase in the impairment ratio lowering short run pass-through by 3%. We find that banks with severely impaired balance sheets do not adjust their loan pricing in response to changes in the policy rate at all. We derive a measure of the hidden bad loan problem, the NPL gap, which we define as the excess of non-performing loans over impaired loans. We show that it played a significant role in the fragmentation of euro area pass-through post-crisis.
Journal: Applied Economics
Pages: 2501-2521
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1546953
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1546953
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Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2501-2521
Template-Type: ReDIF-Article 1.0
Author-Name: Aviad Tur-Sinai
Author-X-Name-First: Aviad
Author-X-Name-Last: Tur-Sinai
Author-Name: Efrat Averbach
Author-X-Name-First: Efrat
Author-X-Name-Last: Averbach
Title: The visible and the hidden behind migrants’ human capital
Abstract:
The paper explores differences in human capital between the Israel-born and immigrants within the Jorgenson and Fraumeni model. Using a unique ‘imputed education’ method, the study answers whether the immigrants’ level of education, in fact, reflects their human capital. The results show that immigrants during their first years do not work in an occupation that fits their education; this holds their estimated human capital below that of the Israel-born. Over the years, the gap between immigrants and non-immigrants in per-capita human capital contracted from 30 percent to 14 percent on average, or, using the imputation method, from 23 percent to 9 percent. In addition, the gaps between the immigrants and nonimmigrants and those between original education and imputed education contract at higher education levels. Some immigrants were able to find an occupation that matched their education and to integrate into the local job market, and the per-capita human capital of immigrants and nonimmigrants converged.
Journal: Applied Economics
Pages: 2522-2533
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1546954
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1546954
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Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2522-2533
Template-Type: ReDIF-Article 1.0
Author-Name: Dmitriy V. Chulkov
Author-X-Name-First: Dmitriy V.
Author-X-Name-Last: Chulkov
Author-Name: John M. Barron
Author-X-Name-First: John M.
Author-X-Name-Last: Barron
Title: Turnover in top management and de-escalation of commitment
Abstract:
We explore how de-escalation of commitment is linked to top management turnover and economic changes at the firm. Escalation of commitment occurs when managers continue investment in a project after receiving negative information. A major determinant of escalation is the personal responsibility effect in that managers are more likely to escalate commitment to a failing project if they were responsible for the original investments. Prior studies suggest that a change in top management facilitates de-escalation of commitment as incoming managers who do not have such commitment are able to stop investments that are discovered to be failing. Our empirical analysis based on a sample of over 3,300 firms for the period from 1992 to 2016 demonstrates the link between specific top management turnover types and economic changes at the firm consistent with the de-escalation of commitment.
Journal: Applied Economics
Pages: 2534-2551
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1546955
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1546955
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Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2534-2551
Template-Type: ReDIF-Article 1.0
Author-Name: Radosław Kurach
Author-X-Name-First: Radosław
Author-X-Name-Last: Kurach
Author-Name: Paweł Kuśmierczyk
Author-X-Name-First: Paweł
Author-X-Name-Last: Kuśmierczyk
Author-Name: Daniel Papla
Author-X-Name-First: Daniel
Author-X-Name-Last: Papla
Title: The optimal portfolio for the two-pillar mandatory pension system: the case of Poland
Abstract:
In the recent decade, there has been observed across the Central and Eastern European states the regulatory trend towards the increase of the non-financial (first) pension pillar size at the expense of the financial (second) pillar. It tends to question the consequences of this shift for the future retirement benefits. Applying the portfolio approach we address this issue by running a series of simulations to find out how to allocate pension contributions between both pillars in an optimal way. Our study contributes to the existing literature as follows. First, we do not perform the assessment of the predetermined regulatory solutions, but we look for an optimal one. Moreover, we allow our optimal rule to be time-varying, if necessary, which would be a true novelty in this research area. Second, we do not base our estimates on historical trends; rather, we apply the long-term economy’s projection to account for the society’s ageing impact, which is a crucially important factor for the solvency of the pension system. Adapting some of the simulation assumptions to fit the Polish case, our results confirm that current regulations underestimate the role of the capital pillar and the optimal allocation between both pillars should be time-varying.
Journal: Applied Economics
Pages: 2552-2565
Issue: 23
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1556773
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1556773
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Handle: RePEc:taf:applec:v:51:y:2019:i:23:p:2552-2565
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Díaz Dapena
Author-X-Name-First: Alberto
Author-X-Name-Last: Díaz Dapena
Author-Name: Fernando Rubiera Morollón
Author-X-Name-First: Fernando
Author-X-Name-Last: Rubiera Morollón
Author-Name: Mônica de Moura Pires
Author-X-Name-First: Mônica de Moura
Author-X-Name-Last: Pires
Author-Name: Andréa da Silva Gomes
Author-X-Name-First: Andréa da Silva
Author-X-Name-Last: Gomes
Title: Convergence in Brazil: new evidence using a multilevel approach
Abstract:
Empirical analysis of regional convergence does not focus its attention on the spatial level of the data. Most of the time, the analysis is made at the aggregated level, by large regions or states, where there are more data available. However, when there is a wide intra-regional heterogeneity, it is possible to have regional convergence coexisting with local processes of divergence. This is our hypothesis for the case of Brazil, where there are relevant different intra-state behaviours. To capture these behaviours in this article, an adaptation of multilevel techniques to the $${\rm{\beta }}$$β
-Convergence analysis is proposed using data of Brazilian states and municipalities taken from the Economic Census (1991 to 2010). With this data, we confirm the existence of convergence at the national level, but we can observe that this general trend coexists with different intra-state behaviours across Brazilian geography. The most industrialized or urbanized states of the Southeast usually present internal divergence, while the less developed inland states normally show convergence, which agrees with what we expect from the central/periphery models.
Journal: Applied Economics
Pages: 5050-5062
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299101
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299101
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Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5050-5062
Template-Type: ReDIF-Article 1.0
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Naji Jalkh
Author-X-Name-First: Naji
Author-X-Name-Last: Jalkh
Author-Name: Peter Molnár
Author-X-Name-First: Peter
Author-X-Name-Last: Molnár
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Title: Bitcoin for energy commodities before and after the December 2013 crash: diversifier, hedge or safe haven?
Abstract:
We study the relationship between Bitcoin and commodities by assessing the ability of Bitcoin to act as a diversifier, hedge, or safe haven against daily movements in commodities in general, and energy commodities in particular. We focus on energy commodities because energy, in the form of electricity, is an essential input in the Bitcoin production. For the entire period, results show that Bitcoin is a strong hedge and a safe-haven against movements in both commodity indices. We further examine whether that ability is also present for non-energy commodities and our analysis show insignificant results when energy commodities are excluded from the general commodity index. We also account for the December 2013 Bitcoin price crash and our results reveal that Bitcoin hedge and safe-haven properties against commodities and energy commodities are only present in the pre-crash period, whereas in the post-crash period Bitcoin is no more than a diversifier. In addition to uncovering the time-varying role of Bitcoin, we highlight the dissimilarity in the dynamic correlations between the extreme downward and extreme upward movements.
Journal: Applied Economics
Pages: 5063-5073
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299102
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299102
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Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5063-5073
Template-Type: ReDIF-Article 1.0
Author-Name: César Alonso-Borrego
Author-X-Name-First: César
Author-X-Name-Last: Alonso-Borrego
Author-Name: Raquel Carrasco
Author-X-Name-First: Raquel
Author-X-Name-Last: Carrasco
Title: Employment and the risk of domestic violence: does the breadwinner’s gender matter?
Abstract:
This article studies the effect on the risk of female victimization of the employment status of the woman and her partner. We use individual-level data from the violence against women surveys for Spain, which also provide information on income and a rich set of sociodemographic characteristics. To address the potential endogeneity of the binary employment indicators, we exploit exogenous geographical information on the employment and unemployment rates by gender and age, within a multivariate probit framework. Our estimation results show that male partner employment plays a major role in the risk of physical violence, while female employment only lowers it when her partner is employed too. The lowest risk appears for more egalitarian couples in which both partners are employed.
Journal: Applied Economics
Pages: 5074-5091
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299103
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299103
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Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5074-5091
Template-Type: ReDIF-Article 1.0
Author-Name: I-Cheng Yeh
Author-X-Name-First: I-Cheng
Author-X-Name-Last: Yeh
Author-Name: Che-hui Lien
Author-X-Name-First: Che-hui
Author-X-Name-Last: Lien
Title: Growth and value hybrid valuation model based on mean reversion
Abstract:
This article proposes a novel valuation model, growth and value hybrid model, to estimate the stock price. This proposed model combines the essence of the asset-based approach, the income-based approach, and the principle of mean reversion to develop the theoretical closed-form formula consisting of three coefficients: value coefficient, value support coefficient and growth coefficient. Regression analysis is employed to fit market data to determine these coefficients. Moreover, this study proposes the double sorting method to build the quantile regression models of the formula to estimate the stock price at a specific quantile. The results show that the predictive capability of the hybrid valuation model is superior to the model without using value support coefficient, which supports the assumption that the PBR is not associated with the ROE when the ROE is less than a threshold. In different time periods of the stock market, no significant difference exists on the value support coefficient. However, the variations of the value coefficient and the growth coefficient are significant.
Journal: Applied Economics
Pages: 5092-5116
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299104
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299104
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Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5092-5116
Template-Type: ReDIF-Article 1.0
Author-Name: Deborah Gefang
Author-X-Name-First: Deborah
Author-X-Name-Last: Gefang
Author-Name: Geraint Johnes
Author-X-Name-First: Geraint
Author-X-Name-Last: Johnes
Title: Asymmetric volatility spillovers between the U.K. regional worker flows and vacancies
Abstract:
This article investigates volatility spillovers between the U.K. regional job finding, job separation and vacancy rates. Employing a large Bayesian logistic smooth transition vector autoregression model, we find high volatility spillovers between the U.K. regional labour markets. Analyses of net spillovers show that, in general, shocks to job separation rates tend to spread into job finding and vacancy rates, while vacancy rates are usually at the receiving end of shocks transmitted from the job separations and job findings. To shed further light on the shock propagation mechanism, we also look into more detailed matters such as the differences in spillovers between regions within the same regime, and that of the same region but in different regimes.
Journal: Applied Economics
Pages: 5117-5133
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299105
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299105
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Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5117-5133
Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Author-Name: Kenichi Suzuki
Author-X-Name-First: Kenichi
Author-X-Name-Last: Suzuki
Title: Why do only the G7+2 countries among United Nations members discuss about international public goods? A simulation study
Abstract:
This article investigates why only the Group of 7 plus China and Russia (G7 + 2 countries) among 194 United Nations members discuss about international public goods? By simulating the heterogeneity of income, prices and preference parameters on the total provisions and the number of free riders, we find that the number of contributors for international public goods is 15 under the 194 member countries, while the others are free riders. In addition, the contributors are the top 15 powerful countries with largest dropout value over the world. Then, the discussion with only 15 countries for public goods is meaningful. As large as the heterogeneity of parameters is, the number of contributors becomes closer to G7 + 2.
Journal: Applied Economics
Pages: 5134-5143
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1299106
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1299106
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Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5134-5143
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Eriksson
Author-X-Name-First: Stefan
Author-X-Name-Last: Eriksson
Author-Name: Karolina Stadin
Author-X-Name-First: Karolina
Author-X-Name-Last: Stadin
Title: What are the determinants of hiring? The importance of product market demand and search frictions
Abstract:
In this article, we study the importance of product market demand and search frictions for hiring. We use a search-matching model with imperfect competition in the product market to derive an equation for total hiring in a local labour market, and estimate it on Swedish panel data. If product markets are imperfectly competitive, product demand shocks should have a direct effect on employment for given levels of prices and wages. Our main finding is that product demand has such a direct effect on hiring. This highlights the importance of taking imperfect competition in the product market into account in studies of employment dynamics and hiring. We also find that, for given levels of prices, wages, and product demand, the number of unemployed workers in a local labour market has a positive effect on hiring, suggesting that search frictions matter. Quantitatively, product demand shocks seem to be more important for understanding the variation in hiring than shocks to the number of unemployed workers.
Journal: Applied Economics
Pages: 5144-5165
Issue: 50
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1302058
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1302058
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Handle: RePEc:taf:applec:v:49:y:2017:i:50:p:5144-5165
Template-Type: ReDIF-Article 1.0
Author-Name: Bhavesh Garg
Author-X-Name-First: Bhavesh
Author-X-Name-Last: Garg
Author-Name: K.P. Prabheesh
Author-X-Name-First: K.P.
Author-X-Name-Last: Prabheesh
Title: External shocks, consumption-smoothing and capital mobility in India: evidence from an intertemporal optimization approach
Abstract:
We examine the solvency of India’s current account (CA) in the post-liberalization period using intertemporal optimization approach to the CA. Using quarterly data ranging from 1996Q1 to 2014Q2, we estimate a benchmark consumption-smoothing model and an extended model that incorporates external shocks. Overall, we find that the predicted optimal CA in both the models can track the actual CA movements and the extended model performs better over the benchmark model. Further, we also find that the optimal CA is more volatile than the actual CA which implies that the capital flows have been less than optimal and thus makes an interesting case for further liberalization of the capital account. Our findings suggest that policies aimed at further liberalization of capital flows will allow larger CA deficits to achieve higher economic growth since it will help agents to further smoothen their consumption without worrying about risks associated with insolvency.
Journal: Applied Economics
Pages: 4814-4829
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1467554
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467554
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Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4814-4829
Template-Type: ReDIF-Article 1.0
Author-Name: Shiyu Bo
Author-X-Name-First: Shiyu
Author-X-Name-Last: Bo
Title: Son preference, children’s gender and parents’ time allocation: evidence from China
Abstract:
This article investigates the effect of children’s gender on parents’ time allocation in developing countries due to the long-existing tradition of son preference. A collective model generates predictions concerning the impact of the birth of sons on family behaviour when son preference is treated as a premium in the father’s utility function. Using data from China, I show that, with more sons instead of daughters, the time spent by both men and women on housework rises, while men have to increase their work time in the labour market and women can reduce theirs. The results are consistent with theoretical predictions and are robust for use in further tests. For the possible endogeneity of children’s gender, I use the law forbidding the use of ultrasound-B to reveal the gender of a foetus as instrumental variables as the identification strategy.
Journal: Applied Economics
Pages: 4830-4846
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1467555
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1467555
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Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4830-4846
Template-Type: ReDIF-Article 1.0
Author-Name: C. Jeffrey Waddoups
Author-X-Name-First: C. Jeffrey
Author-X-Name-Last: Waddoups
Title: Has the large firm training advantage declined during the 2000s?
Abstract:
The study examines data from the Survey of Income and Program Participation (SIPP) and finds a falling incidence of job training in the United States during the period between 2001 and 2009. It also reveals that the firm size-training advantage in which larger firms are more likely to provide employer-paid training than their smaller counterparts has diminished. For the workforce overall, 34.5 percent (for males) to 25.4 percent (for females) of the difference in training between 2001 and 2009 is attributable to a decline in the large firm training advantage. For younger prime-age workers, the falling firm size-training effect is an even larger part of the overall decline in training, amounting to 51.8 percent of the difference in training between 2001 and 2009 for males and 33.9 percent for females.
Journal: Applied Economics
Pages: 4847-4865
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468552
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468552
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Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4847-4865
Template-Type: ReDIF-Article 1.0
Author-Name: Junchao Zhang
Author-X-Name-First: Junchao
Author-X-Name-Last: Zhang
Title: The impact of 9-year compulsory education: quasi-experimental evidence from Taiwan
Abstract:
Using a regression discontinuity design, this article investigates the causal impacts of 9 year compulsory education on students’ educational attainment and dropout rate by Taiwan Population and Housing Census. The results show that the policy reduces approximately 4 percentage points of the dropout likelihood by age 15 and 2 percentage points of the dropout likelihood by age 18, also increases years of schooling by 0.22. Furthermore, heterogeneous effects are observed across gender and ethnic groups. The policy has larger effects on males and local Taiwanese people than on females and Mainlanders.
Journal: Applied Economics
Pages: 4866-4878
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468553
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468553
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Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4866-4878
Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Chan
Author-X-Name-First: Jeff
Author-X-Name-Last: Chan
Title: Market access and occupational upgrading: evidence from the 19th century American transportation network
Abstract:
This article investigates the extent to which county-level market access affects workers’ occupational upgrading and industrial sorting by exploiting the substantial spatial variation and rapid expansion of the United States’ transportation network coverage from 1870 to 1880. First, I find that individuals who enjoyed greater market access in 1880 were more likely to work in higher-paying occupations. Importantly, this result holds across all sectors of employment, for younger and older workers, and for migrants and non-migrants, suggesting that any market size effects on occupational upgrading were not specific to any one group. I also provide results showing that workers were more likely to switch industries within agriculture, but are less likely to do so from manufacturing or services. Finally, I find some evidence of changes to sectoral reallocation, principally away from agriculture, being associated with higher market access. My findings suggest that the expansion of the transportation network in played an important role in determining the type of work Americans performed in the nineteenth century.
Journal: Applied Economics
Pages: 4879-4900
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468554
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468554
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Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4879-4900
Template-Type: ReDIF-Article 1.0
Author-Name: Yao Li
Author-X-Name-First: Yao
Author-X-Name-Last: Li
Author-Name: Jianqing Ruan
Author-X-Name-First: Jianqing
Author-X-Name-Last: Ruan
Author-Name: Chunhui Ye
Author-X-Name-First: Chunhui
Author-X-Name-Last: Ye
Title: How natural disasters affect the evolution of grain markets: evidence from 18th-century China
Abstract:
Market is the foundation of modern society. However, how did market evolve? Previous research has explored the impacts of spatial distance and transportation conditions on market integration. This article argues that natural disasters also played a crucial role in the evolution of market integration in China, particularly in the grain market. When natural disasters occur, governments’ relief measures and merchants’ arbitrage activities will gradually promote interconnectivity among local grain markets. In this article, China’s major grain monthly price data set from 1746 to 1795 and the Chinese historical disaster records dataset from 1696 to 1795 are used to analyse the impact of natural disasters on grain market integration. The empirical results show that natural disasters have a significantly positive effect on the integration of the grain market. The findings continue to hold after controlling the traffic conditions, grain varieties and lag effect. This study proposes a new perspective for understanding the evolution of the grain market.
Journal: Applied Economics
Pages: 4901-4911
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468555
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468555
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Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4901-4911
Template-Type: ReDIF-Article 1.0
Author-Name: R. Inglesi-Lotz
Author-X-Name-First: R.
Author-X-Name-Last: Inglesi-Lotz
Author-Name: A. Hakimi
Author-X-Name-First: A.
Author-X-Name-Last: Hakimi
Author-Name: A. Pouris
Author-X-Name-First: A.
Author-X-Name-Last: Pouris
Title: Patents vs publications and R&D: three sides of the same coin? Panel Smooth Transition Regression (PSTR) for OECD and BRICS countries
Abstract:
The paper aims to define the optimal thresholds of publications and Research and Development (R&D) expenditure and to investigate their impacts on patenting in OECD and BRICS countries. To do so, we use a dataset of 25 countries divided into two country sub-samples for the period 1996–2013, employing the Panel Smooth Transition Regression (PSTR) model. The results indicate that the threshold of publications after which patenting activity is promoted is 8417 publications for the OECD countries and 20,848 for the BRICS countries, while the share of R&D in % of GDP should not exceed 1.683% for the OECD countries and 0.975% for the BRICS countries.
Journal: Applied Economics
Pages: 4912-4923
Issue: 45
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1468556
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1468556
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Handle: RePEc:taf:applec:v:50:y:2018:i:45:p:4912-4923
Template-Type: ReDIF-Article 1.0
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Matthijs Den Besten
Author-X-Name-First: Matthijs
Author-X-Name-Last: Den Besten
Title: The influence of entrepreneur’s personal characteristics on MSEs growth through innovation
Abstract:
Research in the separate areas of innovation and growth has considerably intensified in recent years. However, little scholarly attention has been paid to the entrepreneurs’ personal characteristics that might explain the growth of micro and small enterprises (MSEs) through innovation. This study examines the key entrepreneurs’ personal characteristics affecting micro and small enterprises (MSEs) upgrading, defined here as substantial growth through innovation. Six major determining types of entrepreneurs’ characteristics were identified from the innovation and the growth literature: education, work experience, gender, motivations, nationality and age. The empirical results which are based on t-tests of the differences between upgraders and non-upgraders, the linear probability model and the logit model, all suggest that work experience and motivations are cornerstones in the likelihood that an MSE will upgrade. The policy implications of this study on promoting MSEs upgrading are also discussed.
Journal: Applied Economics
Pages: 4183-4200
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153792
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153792
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Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4183-4200
Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Author-Name: John J. Vaz
Author-X-Name-First: John J.
Author-X-Name-Last: Vaz
Title: Cointegration as an explanation for the Meese–Rogoff puzzle
Abstract:
Some economists suggest that the failure of exchange-rate models to outperform the random walk in exchange rate forecasting out of sample can be attributed to failure to take into account cointegration when it is present. We attempt to find out if cointegration matters for forecasting accuracy by examining the relation between the stationarity and size of the forecasting error. Results based on three macroeconomic models of exchange rates do not provide strong support for the proposition that cointegration matters for forecasting accuracy. The simulation results show that while stationary errors tend to be smaller than non-stationary errors, this is not a universal rule. Irrespective of the presence or absence of cointegration, none of the three models can outperform the random walk in out-of-sample forecasting, which means that cointegration cannot solve the Meese–Rogoff puzzle.
Journal: Applied Economics
Pages: 4201-4209
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153793
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153793
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Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4201-4209
Template-Type: ReDIF-Article 1.0
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Rakesh Gupta
Author-X-Name-First: Rakesh
Author-X-Name-Last: Gupta
Title: Economic integration and stock market dynamic linkages: evidence in the context of Australia and Asia
Abstract:
Countries are becoming economically integrated and it is contended that this will also lead to their financial markets becoming integrated. This contention is important since international financial market integration diminishes portfolio diversification benefits and creates contagion risk. We test this contention in this article in the context of the Australasian region. Australia and Asia have experienced very significant economic integration through a rapid growth in their bilateral trade. We utilize a battery of econometric techniques – cointegration, asymmetric generalized dynamic conditional correlations and panel regression models. As expected, we find that trade intensity significantly drives the interdependence between their stock markets in both the short run and the long run. Thus, given the ever increasing economic integration in this region, this finding implies that their stock markets face the risk of contagion, and that investors in these markets would also be confronted with the prospect of lower diversification benefits.
Journal: Applied Economics
Pages: 4210-4226
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153794
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153794
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Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4210-4226
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Lampach
Author-X-Name-First: Nicolas
Author-X-Name-Last: Lampach
Author-Name: Ulrich B. Morawetz
Author-X-Name-First: Ulrich B.
Author-X-Name-Last: Morawetz
Title: Credibility of propensity score matching estimates. An example from Fair Trade certification of coffee producers
Abstract:
Propensity score matching (PSM) is an increasingly popular method for evaluation studies in agricultural and development economics. However, statisticians and econometricians have stressed that results rely on untestable assumptions, and therefore, guidelines for researchers on how to improve credibility have been developed. We follow one of these guidelines with a data set analysed by other authors to evaluate the impact of Fair Trade certification on the income of coffee producers. We provide thereby a best practice example of how to evaluate the credibility of PSM estimates. We find that a thorough assessment of the assumptions made renders the data we use not suitable for a credible PSM estimation of the effects of treatment. We conclude that the debate about the impact of Fair Trade certification would greatly benefit from a detailed reporting of credibility checking.
Journal: Applied Economics
Pages: 4227-4237
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153795
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153795
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Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4227-4237
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Feuerriegel
Author-X-Name-First: Stefan
Author-X-Name-Last: Feuerriegel
Author-Name: Georg Wolff
Author-X-Name-First: Georg
Author-X-Name-Last: Wolff
Author-Name: Dirk Neumann
Author-X-Name-First: Dirk
Author-X-Name-Last: Neumann
Title: News sentiment and overshooting of exchange rates
Abstract:
In a globalized world, the volume of international trade is based on both import and export prices, thereby making a country’s economy highly dependent on exchange rates. In order to study exchange rate movements, one frequently exploits the so-called Dornbusch overshooting model. However, the model is controversial from a theoretical point of view: it explains exchange rate movements by a number of fundamental variables but ignores how novel information in the form of news can enter the market. As a remedy, this article adjusts for information dissemination by performing a multivariate analysis to compare the classical overshooting model with an extended variant that includes news sentiment. Our results show that news sentiment has a substantial explanatory power of 11% of the exchange rate forecasting error variance. In addition, we also find statistical evidence that a shock in news sentiment may lead to overshooting.
Journal: Applied Economics
Pages: 4238-4250
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153796
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153796
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Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4238-4250
Template-Type: ReDIF-Article 1.0
Author-Name: Tomoyuki Yagi
Author-X-Name-First: Tomoyuki
Author-X-Name-Last: Yagi
Author-Name: Masako Takahashi
Author-X-Name-First: Masako
Author-X-Name-Last: Takahashi
Title: Business cycle turning points based on DEA-discriminant analysis
Abstract:
Recently, the turning points of business cycle are decided with wide viewpoints after passing a couple of years from the points. This study tries to develop a model for judging the turning points in real-time by using a non-parametric approach, DEA-discriminant analysis, because we have sometimes faced sudden changes of economy and non-parametric approaches are useful for covering these movements. The constructed model succeeds to separate periods in Japanese economic expanding and recession terms, and the model would be helpful for the real-time judgments of the turning points of business cycle.
Journal: Applied Economics
Pages: 4251-4256
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156227
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156227
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Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4251-4256
Template-Type: ReDIF-Article 1.0
Author-Name: Makiko Omura
Author-X-Name-First: Makiko
Author-X-Name-Last: Omura
Title: An analysis of wine and food consumption dynamics in Japan using a vector error correction model
Abstract:
This article provides an analysis of long-term equilibrium relationships between wine and food-related consumptions in Japan through the vector error correction model. Utilizing longitudinal data from 1970 to 2009, the analysis suggests that wine consumptions and food-related consumptions are co-integrated. The investigation of orthogonal impulse response functions suggests that food-related items, such as bread, vegetables and eating out are positive factors for wine consumptions. With the expansion of wine consumption and diversification of food consumption patterns, wine is deemed to have gained its place in Japanese ordinary life, regardless of the general state of economy. The estimated results also provide a supporting evidence for previous cross-sectional study findings by others that wine consumers tend to have healthier diet. Despite the downward forecasts for economic performance and some food items, wine consumption is predicted to grow continuously.
Journal: Applied Economics
Pages: 4257-4269
Issue: 44
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1156230
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1156230
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Handle: RePEc:taf:applec:v:48:y:2016:i:44:p:4257-4269
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Polly Palmer
Author-X-Name-First: Polly
Author-X-Name-Last: Palmer
Title: On the dynamics of U.S. consumer sentiment and economic policy assessment
Abstract:
We utilize the Michigan Surveys of Consumers data to first investigate the dynamic relationship between consumers’ assessment of current and future economic conditions (Index of Current Economic Conditions (ICC) and Index of Consumer Expectations (ICE)), and then examine how these assessments are influenced by deterioration/improvement in consumers’ appraisal of economic policies of the government (GP). We further assess how deterioration/improvement in ICC and ICE influences GP. For 1978–2015, our findings first indicate that ICC and ICE are cointegrated and both respond to disequilibrium to restore the long-run equilibrium relationship. Second, deterioration in GP results in deterioration in both ICC and ICE. Improvement in GP, however, results in improvement in ICE with no impact on ICC. Third, deterioration in both ICC and ICE results in deterioration in GP. Improvement in ICE results in improvement in GP, but improvement in ICC has no impact on GP. The observed asymmetries are in line with ‘negativity bias’, whereby people tend to give more weight to negative events than to positive ones.
Journal: Applied Economics
Pages: 227-237
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194964
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194964
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Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:227-237
Template-Type: ReDIF-Article 1.0
Author-Name: Marco A. Palma
Author-X-Name-First: Marco A.
Author-X-Name-Last: Palma
Author-Name: Meghan L. Ness
Author-X-Name-First: Meghan L.
Author-X-Name-Last: Ness
Author-Name: David P. Anderson
Author-X-Name-First: David P.
Author-X-Name-Last: Anderson
Title: Fashionable food: a latent class analysis of social status in food purchases
Abstract:
A framed field experiment combined with a latent class econometric approach was used to investigate how prestige-seeking behaviour influences food choices. We propose a theoretical framework to test conspicuous consumption of specialty food products. We test the hypothesis empirically by categorizing individuals into unobserved latent classes according to their general prestige-seeking behaviour. We find evidence of food consumption driven by prestige to the point of becoming a symbol of social status. The prestige-seeking behaviour seems to be motivated by invidious comparison or higher-class individuals seeking to differentiate themselves from lower-class individuals; and pecuniary emulation, or lower-class individuals buying prestigious goods in order to be perceived as members of a higher class. Findings from this study revealed that the effects of differentiating labelling attributes had a higher impact for individuals classified into classes with prestige-seeking behaviour to attain an elevated social status.
Journal: Applied Economics
Pages: 238-250
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194965
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194965
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Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:238-250
Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Haotian Liang
Author-X-Name-First: Haotian
Author-X-Name-Last: Liang
Title: Firm location, political geography and environmental information disclosure
Abstract:
As the subjective and objective factors that influence corporate behaviours, political region and firm location are of great importance to environmental information disclosure (EID). With spatial and political geography as a research perspective, this article makes a study by using the samples of manufacturing listed companies from 2009 to 2011. As a result, we determine that regulatory distance and political geography had negative effects on EID, while political geography weakens regulatory distance’s function. After considering an enterprise’s administrative rank, we determined that when the rank is higher, regulatory distance has negative effects on EID; when the rank is lower, the effects are the opposite. Regarding political geography, it always weakened the regulatory distance’s function. Moreover, the effects are significant only when the enterprises had low governmental regulation. The study shows the effects that firm location and political geography have made on EID. At the same time, this study also gives theoretical and empirical evidence to the necessity of raising governmental regulatory effectiveness.
Journal: Applied Economics
Pages: 251-262
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1194966
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1194966
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Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:251-262
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Tainsky
Author-X-Name-First: Scott
Author-X-Name-Last: Tainsky
Author-Name: Jie Xu
Author-X-Name-First: Jie
Author-X-Name-Last: Xu
Author-Name: Qian Yang
Author-X-Name-First: Qian
Author-X-Name-Last: Yang
Title: Competitive balance and the participation–spectatorship gap in Chinese table tennis
Abstract:
Excessive competitive imbalance holds the potential to render teams and, by extension, leagues inviable. The China Table Tennis Super League has languished in its attempt to catch on as a popular spectator sport in spite of the sport’s popularity as recreational activity. One of the primary reasons for the participation–spectatorship gap cited by officials is competitive imbalance. This research estimates a number of within-season balance measures, including the standard deviation of winning, concentration ratio, and Herfindahl–Hirschman Index. The results show that both the men’s and women’s leagues have been relatively balanced over time. Implications regarding competitive balance and other league policy considerations are explored.
Journal: Applied Economics
Pages: 263-272
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197363
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197363
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Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:263-272
Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Carmignani
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Carmignani
Author-Name: Parvinder Kler
Author-X-Name-First: Parvinder
Author-X-Name-Last: Kler
Title: The spillover of war in time and space: exploring some open issues
Abstract:
In spite of a voluminous empirical literature, the diffusion of civil war in time and space is still not fully understood and several issues remain open for debate. This article sheds new light on some of these issues. First, we assess the robustness of results to changes in the definition of neighbourhood (spatial dimension) and in the lag structure (temporal dimension). Second, we investigate the factors that determine the strength of civil war diffusion, focusing in particular on (i) the type of war (e.g. its intensity and scope), (ii) the quality of domestic polity, and (iii) interaction opportunities (e.g. ethnic ties and refugee flows). Third, we look at how the occurrence of war in a neighbouring country affects the duration (and not just the onset) of domestic civil war.
Journal: Applied Economics
Pages: 273-288
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197364
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197364
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Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:273-288
Template-Type: ReDIF-Article 1.0
Author-Name: M. Iqbal Ahmed
Author-X-Name-First: M. Iqbal
Author-X-Name-Last: Ahmed
Author-Name: Steven P. Cassou
Author-X-Name-First: Steven P.
Author-X-Name-Last: Cassou
Title: Threshold cointegration between inflation and US capacity utilization
Abstract:
An analogue to the Phillips curve shows a positive relationship between inflation and capacity utilization. Some recent empirical work has shown that this relationship has broken down when using data after the mid-1980s. We empirically investigate this issue using several threshold error correction models. We find, in the long run, a 1% increase in the rate of inflation leads to approximately a 0.0046% increase in capacity utilization. The asymmetric error correction structure shows that changes in capacity utilization show significant corrective measures only during booms while changes in inflation correct during both phases of the business cycle with the corrections being stronger during recessions. We also find that, in the short run, changes in the inflation rate do Granger cause capacity utilization while changes in capacity utilization do not Granger cause inflation. The Granger causality from inflation to capacity utilization can be interpreted as supporting recent calls made in the popular press by some economists that it may be desirable for the Federal Reserve Bank to try to induce some inflation. However, it is also possible to interpret these Granger causality results as arising because both variables respond to some more fundamental set of variables with the inflation rate simply responding sooner. The lack of Granger causality from capacity utilization to inflation casts doubt on the older view that capacity utilization could be a leading indicator for future inflation.
Journal: Applied Economics
Pages: 289-302
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197365
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197365
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Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:289-302
Template-Type: ReDIF-Article 1.0
Author-Name: Dennis L. Weisman
Author-X-Name-First: Dennis L.
Author-X-Name-Last: Weisman
Author-Name: Dong Li
Author-X-Name-First: Dong
Author-X-Name-Last: Li
Title: Weeds in the Ivy: college admissions under preference constraints
Abstract:
In a series of cases spanning more than three decades, the courts have attempted to establish boundaries on the permissible use of racial preferences in college admissions. Proponents of these policies believe that race-based preferences are needed to create a diverse student body that facilitates effective learning and social inclusion. Opponents of such policies contend that racial preferences are inherently discriminatory and eliminating them would yield a more able student body. Whereas race-based preferences have garnered the most attention, elite colleges regularly employ other types of preferences, including those for alumni and talented athletes. To inform this important policy debate, we develop a simple model comprised of a rational college administrator that maximizes a linear combination of student body ability and the college endowment through the choice of race, legacy and merit admission shares. We find that relaxing the racial-preferences constraint can produce a ‘less-able’ student body even when the college administrator places greater weight on student body ability than she does on the college endowment. The change in admissions policy may serve only to increase the number of admissions that can be ‘sold’ to wealthy alumni through legacy preferences and thereby foster the growth of weeds in the Ivy.
Journal: Applied Economics
Pages: 303-312
Issue: 3
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197366
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197366
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Handle: RePEc:taf:applec:v:49:y:2017:i:3:p:303-312
Template-Type: ReDIF-Article 1.0
Author-Name: Bedassa Tadesse
Author-X-Name-First: Bedassa
Author-X-Name-Last: Tadesse
Author-Name: Elias Shukralla
Author-X-Name-First: Elias
Author-X-Name-Last: Shukralla
Author-Name: Bichaka Fayissa
Author-X-Name-First: Bichaka
Author-X-Name-Last: Fayissa
Title: Institutional quality and the effectiveness of aid for trade
Abstract:
Trade policy barriers and high transaction costs hinder developing countries from taking the full advantages of the global trading system. In order to help developing countries overcome the problem, the World Trade Organization (WTO) launched the Aid for Trade (AFT) initiatives in its Ministerial Conference held in Hong Kong in 2005. We examine the effects of AFT inflows on bilateral trade costs facing 133 developing countries while accounting for differences in their location on the contours of various measures of institutional quality. Our results from the estimation of a mixed effects (random-intercept and random-coefficient) model indicate that institutional quality significantly affects the extent to which AFT reduces bilateral trade costs. An important policy implication of our findings is that an economically robust and sustainable reduction in bilateral trade costs facing developing countries requires the presence of both promulgated and effectively functioning institutions such as regulatory power and the rule of law.
Journal: Applied Economics
Pages: 4233-4254
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1589644
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1589644
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Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4233-4254
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: John Inekwe
Author-X-Name-First: John
Author-X-Name-Last: Inekwe
Title: Prediction of financial distress for multinational corporations: Panel estimations across countries
Abstract:
This research predicts ex-ante financial distress and analyses the link between financial distress, performance, employment, `and research and development (R&D) investment in the case of multinational companies (MNCs). The conditional logit and hazard models are employed to predict financial distress, while a conditional mixed process model is employed to obtain consistent and efficient estimates. Financial distress generates contractions in performance, employment, and R&D investment. Hedging against risk mitigates the effect of financial distress on R&D. Our findings vary across countries, for example, we find MNCs in Canada, Israel and the U.S. benefit from hedging against risk. The findings also indicate that ex-ante financial distress is detrimental to employment for Canada, the U.K., the Netherlands and the U.S. The findings indicate the MNCs play different roles across countries in contributing jobs, investment in R&D during the distress period.
Journal: Applied Economics
Pages: 4255-4269
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1589646
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1589646
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Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4255-4269
Template-Type: ReDIF-Article 1.0
Author-Name: Bongseok Choi
Author-X-Name-First: Bongseok
Author-X-Name-Last: Choi
Author-Name: Donghun Kim
Author-X-Name-First: Donghun
Author-X-Name-Last: Kim
Author-Name: Hong Chong Cho
Author-X-Name-First: Hong Chong
Author-X-Name-Last: Cho
Title: Price response, information, and asymmetry of price dispersion
Abstract:
In this study, we examine how differently gasoline prices in 25 regions of Seoul, Korea respond to asymmetric information between retailers and consumers. We estimate the region-specific likelihood that retailers engage in price undercutting under asymmetric information and investigate inter-regional differences. We find that in response to increases in wholesale price, regions with a high likelihood of price undercutting experience intensified gas station price competition while dispersions of price and markups tend to decrease more in response to cost shocks. Understanding the geographical dispersion of retailers’ price responses to information frictions and search intensity is crucial to lowering information barriers across regions and redistributing profit among market participants.
Journal: Applied Economics
Pages: 4270-4281
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591600
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591600
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Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4270-4281
Template-Type: ReDIF-Article 1.0
Author-Name: Jiro Hodoshima
Author-X-Name-First: Jiro
Author-X-Name-Last: Hodoshima
Author-Name: Nana Otsuki
Author-X-Name-First: Nana
Author-X-Name-Last: Otsuki
Title: Evaluation by the Aumann and Serrano performance index and Sharpe ratio: Bitcoin performance
Abstract:
We compare Bitcoin performance based on the Aumann and Serrano performance index and Sharpe ratio assuming that asset returns follow the class of discrete normal mixture distributions. The Aumann and Serrano performance index can take into account higher moments of the underlying distribution of assets and is relevant for risk-averse investors. We evaluate Bitcoin performance based on the Aumann and Serrano index relative to the performance of other assets. Our evaluation shows that Bitcoin is rated highly by the Sharpe ratio but rated very poorly by the Aumann and Serrano index. We also find some stock assets can beat Bitcoin by the Sharpe ratio when an investment horizon is monthly.
Journal: Applied Economics
Pages: 4282-4298
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591601
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591601
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Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4282-4298
Template-Type: ReDIF-Article 1.0
Author-Name: Yongkil Ahn
Author-X-Name-First: Yongkil
Author-X-Name-Last: Ahn
Title: Distress cost and corporate financing policy: evidence from the equity options market
Abstract:
This study examines the link between distress cost and corporate financing policy through the lens of the equity options market. Four features stand out. First, the cost of distress is comparable to the tax shield from debt financing. Second, the results provide evidence that ordinary least-squares estimates understate the impact of market leverage on default risk. Third, consistent with the information models of debt maturity, firms with higher default probability use more long-term debt. Finally, more distressed firms rely on secured debt to a greater extent. Overall, the results support the trade-off theory of capital structure.
Journal: Applied Economics
Pages: 4299-4312
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591602
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591602
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Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4299-4312
Template-Type: ReDIF-Article 1.0
Author-Name: Rudra P. Pradhan
Author-X-Name-First: Rudra P.
Author-X-Name-Last: Pradhan
Author-Name: Mak B. Arvin
Author-X-Name-First: Mak B.
Author-X-Name-Last: Arvin
Author-Name: Mahendhiran Nair
Author-X-Name-First: Mahendhiran
Author-X-Name-Last: Nair
Author-Name: Sara E. Bennett
Author-X-Name-First: Sara E.
Author-X-Name-Last: Bennett
Title: Inter-linkages between competition and stabilisation policies in the banking sector and stock market development in Europe
Abstract:
The banking sector and the stock market in Europe have been adversely impacted by a series of global financial crises over the last two decades. Major financial reforms were implemented to enhance the stability and competition within the banking sector. Measures were also implemented to create a vibrant stock market in Europe to stimulate economic growth in Europe. This study examines the interactions between stock market development, banking competition, and banking stability in European countries from 1996 to 2016. The purpose of the study is to understand the inter-linkages between these variables to ascertain the spillover impact of policy reforms in the banking sector on the stock market and vice-versa. Using a vector error-correction model, the study finds long-run and short-run inter-linkages between banking competition, banking stability, and stock market development in European countries. The study’s most robust result is that banking competition and banking stability stimulate stock market development in the long run. There is also some evidence that healthy competition in the banking sector and stock market development instils greater stability in the banking sector. The results suggest that policy measures put in place to create a vibrant stock market must include elevating banking competition and banking stability, with policymakers being cognizant that causality may be bidirectional.
Journal: Applied Economics
Pages: 4313-4324
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591603
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591603
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Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4313-4324
Template-Type: ReDIF-Article 1.0
Author-Name: Madhu Sehrawat
Author-X-Name-First: Madhu
Author-X-Name-Last: Sehrawat
Author-Name: Sanjay Kumar Singh
Author-X-Name-First: Sanjay Kumar
Author-X-Name-Last: Singh
Title: Human capital and income inequality in India: is there a non-linear and asymmetric relationship?
Abstract:
The article attempts to provide empirical evidence on the relationship between human capital and income inequality in India in a non-linear and asymmetric framework. To capture both long-run and short-run asymmetries, we have employed the non-linear autoregressive distributed lag approach using the relevant data from 1970 to 2016. Findings of the article suggest that education expansion acts as a major factor in reducing prevailing high income inequality, that is an increase in average years of schooling results in more equal distribution of income. In contrast, high economic growth, inflation and trade openness create unequal distribution of income. The asymmetric causality test results indicate that there is unidirectional causality running from female human capital, economic growth and inflation to income inequality. From a policy perspective, we suggest that education expansion should be used as a powerful tool to mitigate income inequality by emphasizing the quality of education. At the same time, policies geared towards social benefits, inclusive education, training for unskilled workers and price stability should be encouraged to attain fair income distribution in India.
Journal: Applied Economics
Pages: 4325-4336
Issue: 39
Volume: 51
Year: 2019
Month: 8
X-DOI: 10.1080/00036846.2019.1591605
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1591605
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Handle: RePEc:taf:applec:v:51:y:2019:i:39:p:4325-4336
Template-Type: ReDIF-Article 1.0
Author-Name: Anca M. Grecu
Author-X-Name-First: Anca M.
Author-X-Name-Last: Grecu
Author-Name: Ghanshyam Sharma
Author-X-Name-First: Ghanshyam
Author-X-Name-Last: Sharma
Title: The effect of telehealth insurance mandates on health-care utilization and outcomes
Abstract:
This paper uses panel data techniques to investigate the impact of state mandates to cover telehealth services on private insurance premiums and enrollment, health-care utilization, and health outcomes. There is evidence that telehealth insurance mandates are associated with an increase in primary care, but no significant changes in overall health outcomes. However, there is evidence of a reduction of secondary care and improvement in health outcomes in non-metropolitan areas. The results provide useful information regarding the potential of telehealth to reduce health-care costs as well as to reduce disparities in access to health care and in health outcomes.
Journal: Applied Economics
Pages: 5972-5985
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1644448
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644448
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Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:5972-5985
Template-Type: ReDIF-Article 1.0
Author-Name: Yunwei Gai
Author-X-Name-First: Yunwei
Author-X-Name-Last: Gai
Title: Does state-mandated reporting work? The case of surgical site infection in CABG patients
Abstract:
This paper is the first empirical study to explore the relationship between the state-mandated reporting of surgical site infections (SSIs) and changes in infection rates, length of stay and costs among coronary artery bypass grafting (CABG) patients. This paper uses generalized difference-in-difference (DID) methods to analyze patient discharge data from the Nationwide Inpatient Sample (NIS) from January 2004 to December 2011 merged with state-level data on mandatory reporting status. After controlling patient and hospital characteristics, and state and year fixed effects, we do not find empirical evidence that state-mandated reporting leads to lower odds of SSIs in CABG procedure. Although it is associated with shorter length of stay and lower costs, the effect is not significant. These results suggest that merely requiring hospitals to report outcomes may not lead to significant changes at least in the case of SSIs among CABG patients.
Journal: Applied Economics
Pages: 5986-5998
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645282
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645282
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Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:5986-5998
Template-Type: ReDIF-Article 1.0
Author-Name: Ivana Kravčáková Vozárová
Author-X-Name-First: Ivana
Author-X-Name-Last: Kravčáková Vozárová
Author-Name: Rastislav Kotulič
Author-X-Name-First: Rastislav
Author-X-Name-Last: Kotulič
Author-Name: Roman Vavrek
Author-X-Name-First: Roman
Author-X-Name-Last: Vavrek
Title: Disparities in the financial performance of agricultural entities according to the legal form: the case of Slovakia
Abstract:
Financial management in agricultural enterprises is affected by a range of factors that are not present in other sectors. One of the factors that affect the performance of enterprises is the legal or organizational form of the business. In Slovakia, the specific structure of farms is different from that of almost any other member state of the European Union. The aim of this paper is to evaluate the disparities in the financial performance of agricultural enterprises according to the legal form. We analysed and compared two groups of agricultural entities, agricultural cooperatives and business companies, for the period from 2005 to 2014. Based on an analysis of the differences using mathematical and statistical methods, we can conclude that the legal forms are distinguished in all monitored parameters and our hypothesis on the differences in economic performance of agricultural entities according to legal form was confirmed.
Journal: Applied Economics
Pages: 5999-6008
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1645285
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645285
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Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:5999-6008
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Gesualdo
Author-X-Name-First: Maria
Author-X-Name-Last: Gesualdo
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Author-Name: Nhi H. Tran
Author-X-Name-First: Nhi H.
Author-X-Name-Last: Tran
Author-Name: Francesco Felici
Author-X-Name-First: Francesco
Author-X-Name-Last: Felici
Title: Building a computable general equilibrium tax model for Italy
Abstract:
In this paper, we develop a multi-sectoral computable general equilibrium tax model for Italy allowing for a number of fiscal tools. We illustrate the methodology for modelling and accommodating the full range of direct and indirect taxes into the national general equilibrium model. In particular, we build a commodity tax matrix by commodity, source, user and tax type; and a production tax matrix by industry and tax type. We also put a special emphasis on the institutional sector accounts, incorporating a detailed system of equations. Our model provides a powerful tool for acquiring new insights in fiscal policy analysis, through the assessment of tailored tax reforms, which can consist of either changes in tax rates and tax bases for indirect and direct taxes. Finally, to validate the model we perform an equalizing Value-Added-Tax rates reform. We find that a budget-neutral uniform tax rate reform would be GDP and welfare improving. However, results across agents and sectors vary.
Journal: Applied Economics
Pages: 6009-6020
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1646875
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646875
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Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:6009-6020
Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang
Author-X-Name-First: Hong
Author-X-Name-Last: Zhang
Title: Gender difference in promotions: new evidence from the internal labor market in China
Abstract:
Gender differences in the labor market have attracted significant attention from economists, who focus on gender differences not only in wages but also in promotions. However, the research on gender differences in promotions within the internal labor market is scant, especially in China. By taking advantage of rare personnel administration data from a large firm in China, this paper explores different aspects of the gender promotion gap, and then further discusses the contribution of several individual and organizational variables in accounting for gender differences in each aspect of promotions.
Journal: Applied Economics
Pages: 6021-6033
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1646882
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646882
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Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:6021-6033
Template-Type: ReDIF-Article 1.0
Author-Name: William J. Crowder
Author-X-Name-First: William J.
Author-X-Name-Last: Crowder
Author-Name: Aaron Smallwood
Author-X-Name-First: Aaron
Author-X-Name-Last: Smallwood
Title: Volatility in productivity and the impact on unemployment
Abstract:
Volatility, and the uncertainty it creates, has long been recognized as a factor in economic decision making. Since hiring occurs before shocks to productivity are realized, firms’ investment in new labour is inherently risky. How large a role uncertainty in productivity has on aggregate unemployment is an empirical question that we attempt to answer. In this paper we measure the impact of higher volatility in labour productivity on the unemployment rate in the U.S. economy using a SVAR-GARCH-M model. Using the conditional standard deviation of productivity innovations from a multivariate GARCH model to measure uncertainty, we provide compelling evidence that unemployment increases with volatility. This estimated relative effect is actually larger for positive productivity shocks leading to unemployment declines only 60% as large as would have occurred using models that exclude uncertainty.
Journal: Applied Economics
Pages: 6034-6039
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1654079
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1654079
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Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:6034-6039
Template-Type: ReDIF-Article 1.0
Author-Name: María Arrazola
Author-X-Name-First: María
Author-X-Name-Last: Arrazola
Author-Name: José de Hevia
Author-X-Name-First: José de
Author-X-Name-Last: Hevia
Author-Name: José Félix Sanz-Sanz
Author-X-Name-First: José Félix
Author-X-Name-Last: Sanz-Sanz
Title: Assessing tax reforms through the elasticity of reported income: an empirical analysis for Spain
Abstract:
This paper demonstrates the usefulness of the elasticity of reported income to assess tax reforms from the perspectives of tax revenue and well-being. Employing different identification strategies, evidence is provided of the value of the elasticity of gross reported income in Spain and, based on this elasticity, a detailed assessment is made of the impact of the increase in marginal tax rates which the Spanish government approved in 2012. We use microdata from the Taxpayers Panel of the Institute for Fiscal Studies. The mean value of this elasticity for Spain is 0,363 with considerable heterogeneity depending on taxpayers’ characteristics.
Journal: Applied Economics
Pages: 6040-6053
Issue: 56
Volume: 51
Year: 2019
Month: 12
X-DOI: 10.1080/00036846.2019.1654081
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1654081
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Handle: RePEc:taf:applec:v:51:y:2019:i:56:p:6040-6053
Template-Type: ReDIF-Article 1.0
Author-Name: Lindon J. Robison
Author-X-Name-First: Lindon J.
Author-X-Name-Last: Robison
Author-Name: Trey Malone
Author-X-Name-First: Trey
Author-X-Name-Last: Malone
Author-Name: Jeffrey O. Oliver
Author-X-Name-First: Jeffrey O.
Author-X-Name-Last: Oliver
Author-Name: Richard E. Winder
Author-X-Name-First: Richard E.
Author-X-Name-Last: Winder
Author-Name: James W. Ogilvie
Author-X-Name-First: James W.
Author-X-Name-Last: Ogilvie
Title: How social capital influences medical choices: a study of colonoscopy decision-making
Abstract:
While many studies have focused on the aggregate effect of social relationships on economic outcomes, this study identifies how social relationships are likely to motivate individual decision-making as it relates to health care choices. Focusing on surveys collected about colonoscopies, we show that a key determining factor in the decision to undergo the procedure is the relational nature of the patient's health. That is, patients who consider how their health influences other people in their lives are more likely to get a colonoscopy. These results suggest that encouraging patients to consider their social relationships is likely to increase the likelihood that they undergo beneficial procedures.
Journal: Applied Economics
Pages: 2544-2555
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693020
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693020
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Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2544-2555
Template-Type: ReDIF-Article 1.0
Author-Name: Zigen Chen
Author-X-Name-First: Zigen
Author-X-Name-Last: Chen
Author-Name: Xu Xin
Author-X-Name-First: Xu
Author-X-Name-Last: Xin
Author-Name: Kang Chen
Author-X-Name-First: Kang
Author-X-Name-Last: Chen
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Title: A location model for the departure port tax rebate policy
Abstract:
In this paper, a bi-level programming model is established to solve the decision problem of the departure port tax rebate policy (DPTRP). Based on the theory of user equilibrium, the model can optimize the selection of inland port (or domestic trade port) to implement the DPTRP with the goal of maximizing total generalized transportation cost under the constraint of the existing total construction investment. Based on genetic algorithm, a new algorithm is developed to solve the model, and numerical experiments are carried out using north-eastern China as the research object. The results show that the implementation of the DPTRP will reduce the tax refund time and cost of north-eastern China.
Journal: Applied Economics
Pages: 2556-2568
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693021
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693021
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Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2556-2568
Template-Type: ReDIF-Article 1.0
Author-Name: Jin-Hyuk Kim
Author-X-Name-First: Jin-Hyuk
Author-X-Name-Last: Kim
Author-Name: Benjamin Mitra-Kahn
Author-X-Name-First: Benjamin
Author-X-Name-Last: Mitra-Kahn
Title: The unintended consequences of crowdsourcing prior art search
Abstract:
A pilot programme run by the United States Patent and Trademark Office sought to crowdsource prior art search to help patent examiners examine patent applications in emerging technology areas. By comparing participating patent applications to a control group and using a differential awareness of the programme between domestic and foreign applicants as an instrument, we show that the programme did not have a significant effect on allowance rate, led to more requests for continued examination and boosted forward citations substantially. The programme also increased the patent examiner’s search effort both in terms of the number of search reports filed by the examiners and the number of references added by the examiners after the first office action.
Journal: Applied Economics
Pages: 2569-2579
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693022
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693022
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Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2569-2579
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Trucíos
Author-X-Name-First: Carlos
Author-X-Name-Last: Trucíos
Author-Name: Aviral K. Tiwari
Author-X-Name-First: Aviral K.
Author-X-Name-Last: Tiwari
Author-Name: Faisal Alqahtani
Author-X-Name-First: Faisal
Author-X-Name-Last: Alqahtani
Title: Value-at-risk and expected shortfall in cryptocurrencies’ portfolio: a vine copula–based approach
Abstract:
Risk management is an important and helpful process for investors, hedge funds, traders and market makers. One of its key points is the appropriate estimation of risk measures which can improve the investment decisions and trading strategies. The high volatility of cryptocurrencies turns them a really risky investment and consequently, appropriate risk measures estimation is extremely necessary. In this article, we deal with the estimation of two widely used risk measures such as Value-at-Risk and Expected Shortfall in a cryptocurrency context. To face the presence of outliers and the correlation between cryptocurrencies, we propose a methodology based on vine copulas and robust volatility models. Our procedure is illustrated in a seven-dimensional equal-weight cryptocurrency portfolio and displays good performance.
Journal: Applied Economics
Pages: 2580-2593
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693023
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693023
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Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2580-2593
Template-Type: ReDIF-Article 1.0
Author-Name: Tanweer Akram
Author-X-Name-First: Tanweer
Author-X-Name-Last: Akram
Author-Name: Huiqing Li
Author-X-Name-First: Huiqing
Author-X-Name-Last: Li
Title: An inquiry concerning long-term U.S. interest rates using monthly data
Abstract:
This paper undertakes an empirical inquiry concerning the determinants of the long-term interest rate on U.S. Treasury securities. It applies the bounds testing procedure to cointegration and error correction models within the autoregressive distributive lag (ARDL) framework, using monthly data and estimating a wide range of Keynesian models of long-term interest rates. While previous studies have mainly relied on quarterly data, the use of monthly data substantially expands the number of observations. This in turn enables the calibration of a wide range of models to test various hypotheses. The short-term interest rate is the key determinant of the long-term interest rate, while the rate of core inflation and the pace of economic activity also influence the long-term interest rate. A rise in the ratio of the federal fiscal balance (government net lending/borrowing as a share of nominal GDP) lowers the long-term interest rate on Treasury securities. The short- and long-run effects of short-term interest rates, the rate of inflation, the pace of economic activity, and the fiscal balance ratio on the long-term interest rate are estimated. The findings reinforce Keynes’s prescient insights on the determinants of government bond yields.
Journal: Applied Economics
Pages: 2594-2621
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693696
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693696
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Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2594-2621
Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Gilbert
Author-X-Name-First: Aaron
Author-X-Name-Last: Gilbert
Author-Name: Alireza Tourani-Rad
Author-X-Name-First: Alireza
Author-X-Name-Last: Tourani-Rad
Title: Do penalties matter? The impact of the introduction of financial penalties in the United Kingdom for insider trading
Abstract:
Insider trading is widely thought to be rampant, resulting in considerable harm to financial markets despite efforts to deter insiders. The main tools to deter insider trading are the sanctions imposed by legislators, of which financial penalties are one type. Civil financial penalties come with a lower burden of proof, which may increase deterrence given the circumstantial nature of insider trading. However, financial penalties have been largely overlooked globally. We test the deterrence of civil financial penalties around the introduction of unlimited financial sanctions for insider trading in the UK in December 2001. We employ three measures of informed trading and two measures of price efficiency for 412 UK listed companies around 12 months either side of the enactment of the financial penalties. We observe evidence that financial penalties have generally increased the deterrence of insiders in the UK market.
Journal: Applied Economics
Pages: 2622-2635
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693697
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693697
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Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2622-2635
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W Clements
Author-X-Name-First: Kenneth W
Author-X-Name-Last: Clements
Author-Name: Jiawei Si
Author-X-Name-First: Jiawei
Author-X-Name-Last: Si
Author-Name: Eliyathamby A. Selvanathan
Author-X-Name-First: Eliyathamby A.
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: Demand elasticities for 9 goods in 37 countries
Abstract:
In most OECD countries, consumption absorbs more than three fourths of their country’s GDP. Therefore, the study of their consumption patterns is important. This paper gives up-to-date estimates of income and price elasticities for 9 commodities in each of 37 countries that are members (or affiliates) of the OECD. In addition, the paper presents a detailed analysis of OECD consumption patterns in the form of investigating empirical regularities and testing demand theory hypotheses. Using differential demand equations, we find that the hypothesis of homogeneity hypothesis is supported in all countries; there is some evidence that symmetry is problematic, although we cannot be sure about this; and preference independence (whereby the marginal utility of each good depends only on its consumption) is not rejected in 90% of the countries. The study also finds that income elasticities of rich countries are generally lower than those of poorer countries, and, in general, there is a negative linear relationship between own-price elasticities and income. These elasticities can be used as key inputs in economic policy modelling such as CGE modelling and GST estimation.
Journal: Applied Economics
Pages: 2636-2655
Issue: 24
Volume: 52
Year: 2020
Month: 5
X-DOI: 10.1080/00036846.2019.1693698
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1693698
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Handle: RePEc:taf:applec:v:52:y:2020:i:24:p:2636-2655
Template-Type: ReDIF-Article 1.0
Author-Name: Shruti Sharma
Author-X-Name-First: Shruti
Author-X-Name-Last: Sharma
Title: Heterogeneity of imported intermediate inputs and labour: evidence from India’s input tariff liberalization
Abstract:
This article explores whether the nature of imports matters when examining the effects of trade on plant-level labour outcomes. Previous literature that examines this question mainly considers imported intermediate inputs as a homogenous group and is unable to reach a consensus on the effects of input tariff liberalization on employment and wages of skilled and unskilled workers. Exploiting detailed product-level information available on intermediate inputs from plant-level data for the Indian manufacturing sector, I distinguish between plants that import mainly for quality considerations as opposed to plants that seek imports as cheaper alternatives to domestic inputs. I find that strong complementarities exist between skilled workers and imported inputs for plants importing high-quality inputs. For plants importing intermediate inputs mainly as a cost-cutting strategy, input tariff liberalization leads to an increase in employment of both skilled and unskilled workers, but a decline in skill composition. This can best be explained as a strategy that achieves economies of scale. On average, as input tariffs liberalize, importing plants employ more workers and pay higher wages than non-importing plants.
Journal: Applied Economics
Pages: 1171-1187
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1355541
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355541
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Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1171-1187
Template-Type: ReDIF-Article 1.0
Author-Name: Kishore Joseph
Author-X-Name-First: Kishore
Author-X-Name-Last: Joseph
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Title: Intraday market effects in electronic soybean futures market during non-trading and trading hour announcements
Abstract:
This article investigates market reactions to major United States Department of Agriculture announcements during non-trading and trading hours in the soybean futures market using microstructure data. Following report release, volume increases and remains elevated for up to 15 to 20 minutes. The volume spikes for the non-trading releases relative to the trading releases, but are identical after the first reaction. Report releases during non-trading hours cause a large spike in volatility at the onset of trading which subsides quickly. In contrast, releases during trading hours result in a smaller volatility spike, which extends for 5–6 min at a higher magnitude. Adjusting volatility by normal trading volatility indicates that volatility in trading hour release is higher in both immediate response and persistence. Return correlations provide little evidence to support systematic under- or overreaction in prices regardless of when the report is released reflecting the efficiency of the market.
Journal: Applied Economics
Pages: 1188-1202
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1355542
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355542
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Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1188-1202
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Crowley
Author-X-Name-First: Frank
Author-X-Name-Last: Crowley
Author-Name: Philip McCann
Author-X-Name-First: Philip
Author-X-Name-Last: McCann
Title: Firm innovation and productivity in Europe: evidence from innovation-driven and transition-driven economies
Abstract:
This article examines the links between firm innovation and firm productivity performance across a range of European economies, and in particular, we explore the differences between countries which are in transition from efficiency-driven to innovation-driven with those which are primarily innovation-driven economies. We employ an endogenous-switching technique to explore micro-economic survey-based data from both innovating and noninnovating firms. The model allows us to construct counterfactual scenarios which overcome problems of self-selection in the data. Some of the findings provide support for the traditional patterns previously found in the innovation literature, in which innovation efforts and investments in physical and human capital are found to be important for product and process innovations in manufacturing and service firms and across economy types. Our counterfactual analysis also allows us to outline a rationale for policy intervention towards noninnovating firms as well as innovating firms depending on where the transitional heterogeneity effects are greatest.
Journal: Applied Economics
Pages: 1203-1221
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1355543
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355543
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Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1203-1221
Template-Type: ReDIF-Article 1.0
Author-Name: Weibo Xing
Author-X-Name-First: Weibo
Author-X-Name-Last: Xing
Author-Name: Qinghua Zhang
Author-X-Name-First: Qinghua
Author-X-Name-Last: Zhang
Title: The effects of vertical and horizontal incentives on local tax efforts: evidence from China
Abstract:
Tax effort is a measure of a government’s effort to collect taxes. This study explores what impacts both vertical and horizontal incentives have on local governments’ tax efforts in China. For consistency with the literature, we first include typical economic and institutional factors in our analysis. We find that the effects of economic factors on local tax efforts are significant, but the effects of institutional factors tend to be weak. Fiscal decentralization, as a vertical incentive, has a significantly positive effect on tax efforts at the provincial level. Meanwhile, fiscal interaction, as a horizontal incentive, is also taken into account in a spatial specification to explain tax competition among local governments. The results show that local tax effort in China also depends on the horizontal incentive. Hence, to improve local tax effort, the central government should let the locals have more autonomy in collecting taxes and evaluate local tax effort by referring to tax collection in adjacent provinces simultaneously.
Journal: Applied Economics
Pages: 1222-1237
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1355546
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355546
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Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1222-1237
Template-Type: ReDIF-Article 1.0
Author-Name: Ho Seoung Na
Author-X-Name-First: Ho Seoung
Author-X-Name-Last: Na
Author-Name: Daeho Lee
Author-X-Name-First: Daeho
Author-X-Name-Last: Lee
Author-Name: Junseok Hwang
Author-X-Name-First: Junseok
Author-X-Name-Last: Hwang
Author-Name: Changjun Lee
Author-X-Name-First: Changjun
Author-X-Name-Last: Lee
Title: Research on the mutual relations between ISP and ASP efficiency changes for the sustainable growth of the Internet industry
Abstract:
Innovations in Internet networks and applications are equally important. However, there is controversy in the literature regarding whether it is network or application innovation that leads to the development and innovation of Internet industries. In this study, the mutual relations of Internet service providers’ (ISP) and application service providers’ efficiency changes are analysed empirically using a Granger causality test. Over the entire period of 1998–2011, efficiency changes of web service companies positively Granger-cause those of ISPs and vice versa. In the case of VoIP and streaming services, however, efficiency changes of VoIP and streaming services Granger-cause those of ISPs during the former half period, whereas those of ISPs negatively Granger-cause efficiency changes of streaming services during the latter half. As services that require heavy data traffic and QoS guarantees are launched, a policy that promotes virtuous circulation between ISPs and application service providers (ASPs) is necessary for the development of all Internet-related industries.
Journal: Applied Economics
Pages: 1238-1253
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1358443
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1358443
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Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1238-1253
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Sébastien Pentecote
Author-X-Name-First: Jean-Sébastien
Author-X-Name-Last: Pentecote
Author-Name: Fabien Rondeau
Author-X-Name-First: Fabien
Author-X-Name-Last: Rondeau
Title: Withstanding financial crises: would trade partners help or hurt?
Abstract:
This article provides new empirical evidence on the losses of real activity caused by various financial shocks. Spillover effects due to foreign trade linkages deserve special attention. To this end, we estimate a modify auto-regressive process and a Seemingly Unrelated Regression Equations estimator is used to account for the dependency of one’s country growth on its trade-weighted partners growth. We run estimations on a set of currency collapses, banking crises and sovereign defaults in 49 advanced and developing countries from 1978 to 2011. The trade-weighted foreign demand effect mitigated the economic downturn following a banking or a sovereign debt crisis in all countries, while only the advanced ones benefited from it after a currency collapse. Trade-based spillover effects make banking crises more costly in the developing countries, in those that liberalize their financial account. It contrasts with what is observed during currency or sovereign debt crises.
Journal: Applied Economics
Pages: 1254-1267
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1358444
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1358444
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Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1254-1267
Template-Type: ReDIF-Article 1.0
Author-Name: Luuk Elkhuizen
Author-X-Name-First: Luuk
Author-X-Name-Last: Elkhuizen
Author-Name: Niels Hermes
Author-X-Name-First: Niels
Author-X-Name-Last: Hermes
Author-Name: Jan Jacobs
Author-X-Name-First: Jan
Author-X-Name-Last: Jacobs
Author-Name: Aljar Meesters
Author-X-Name-First: Aljar
Author-X-Name-Last: Meesters
Title: Financial development, financial liberalization and social capital
Abstract:
The relationship between financial liberalization policies and financial development is controversial. The impact of these policies differs greatly across countries. In the literature, the quality of formal institutions has been identified as an important source of this heterogeneity, as countries with a weak institutional environment generally fail to benefit from financial liberalization. Using panel data covering 82 countries for the period 1973–2008, we find evidence that social capital may substitute for formal institutions as a prerequisite for effective financial liberalization policies. In particular, we find that during the post Washington-consensus period countries with a high prevailing level of social capital can ensure that financial liberalization positively influences financial development, despite the poor quality of their formal institutions.
Journal: Applied Economics
Pages: 1268-1288
Issue: 11
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1358446
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1358446
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Handle: RePEc:taf:applec:v:50:y:2018:i:11:p:1268-1288
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Pertold-Gebicka
Author-X-Name-First: Barbara
Author-X-Name-Last: Pertold-Gebicka
Title: Parental leave length and mothers’ careers: what can be inferred from occupational allocation?
Abstract:
This paper shows that the time spent on parental leave affects mothers’ careers several years after childbirth. It also shows that policy-relevant conclusions can be drawn from occupational allocation data even in the absence of individual wage or earnings information. I take advantage of a legislative reform that changed the duration of parental benefit payments effective in the Czech Republic in 2008. Introducing the possibility of the flexible timing of benefit collection over the period of 2–4 years, as opposed to the only option of 4 years before, the reform significantly increased the share of mothers returning to work before their youngest child turns four. This further translates to increased representation of employed mothers in high-skilled occupations and increases the average occupation wage of the affected mothers 6 to 8 years after childbirth. These findings indicate that shorter leaves are beneficial for mothers’ careers, at least in the medium run.
Journal: Applied Economics
Pages: 879-904
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646870
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646870
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Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:879-904
Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Cerda
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Cerda
Author-Name: Rodrigo Fuentes
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Fuentes
Author-Name: Gonzalo García
Author-X-Name-First: Gonzalo
Author-X-Name-Last: García
Author-Name: José I. Llodrá
Author-X-Name-First: José I.
Author-X-Name-Last: Llodrá
Title: Understanding domestic savings: an empirical approach
Abstract:
There are two unusual and important features in the evolution of the savings rate in Chile. First, the economy increased the average savings rate by 11 percentage points in the period 1985–2013 compared to 1960–1984, mainly due to a large change in private savings rate (10 percentage points), and an additional 1 percentage point from the public sector. The second feature is related to the change in the composition of private savings. After several years of nearly no corporate savings, this component became an important part of total savings reaching an average of almost 10% of Gross National Disposable Income (GNDI) during the period 1986–2012. Our results show that the 1984 tax reform, the boost in the marginal productivity of capital and the deepening of the financial market were the main drivers that explain the dramatic increase in corporate savings. We also found that the reduction in personal income tax after the tax reform and the higher income per capita growth helped to explain the increase in household savings, while the structural balance rule helped to explain the increase in public savings.
Journal: Applied Economics
Pages: 905-928
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646871
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646871
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Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:905-928
Template-Type: ReDIF-Article 1.0
Author-Name: Nirosha Hewa Wellalage
Author-X-Name-First: Nirosha Hewa
Author-X-Name-Last: Wellalage
Author-Name: Stuart Locke
Author-X-Name-First: Stuart
Author-X-Name-Last: Locke
Title: Remittance and financial inclusion in refugee migrants: inverse probability of treatment weighting using the propensity score
Abstract:
This paper investigates the impact on remittances on financial inclusion of refugee migrants. While financial inclusion is gaining traction in the humanitarian and development literature, the linkage with the potential to improve the wellbeing of refugees, who are part of an upward spiral in numbers, has not been tackled. We examine World Bank survey data of 1041 Syrian refugees, using the inverse probability of treatment weighting propensity score analysis (IPTW). The method minimises the influence of outliers and addresses unobservable and missing data biases, which can plague survey based data. We observe that common indicators of financial inclusion when applied to refugees, given their limited access to formal financial services, may introduce a bias as the informal financial sector and excluded formal financial sector services do contribute to inclusiveness. We adopt a broader protocol for our data, measuring financial inclusion through six metrics stemming from G20 proposals. Overall, there is an opportunity to deepen financial inclusion for refugees who receive or send remittances. The possibility of expanding the financial inclusion options, and for this to percolate through to greater social inclusion, proffers practical commercial steps and policy enabling actions.
Journal: Applied Economics
Pages: 929-950
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646876
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646876
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Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:929-950
Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: A nonparametric analysis of insufficient wage incentives in the Chinese health industry
Abstract:
This study provides empirical results on the insufficient wage incentives in the Chinese health industry, which may result in the poor productivity of high-ability medical personnel. We first propose a signaling game by capturing the progressive wage incentive in this industry. Then, we show that the model primitives are nonparametrically identified and estimable using recently developed methodologies related to measurement errors. Adopting a dataset from the China Household Income Project, we provide empirical evidence of the negative influence of insufficient wage incentives on the productivity of high-ability workers, especially those in higher job positions. As the number of high-ability workers in higher job positions is high, it is important to improve wage incentives in the Chinese health industry, especially for workers in higher job positions, to promote the productivity of high-ability medical workers.
Journal: Applied Economics
Pages: 951-969
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646877
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646877
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Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:951-969
Template-Type: ReDIF-Article 1.0
Author-Name: Eric W. Chan
Author-X-Name-First: Eric W.
Author-X-Name-Last: Chan
Title: Preschool for all? Enrollment and maternal labour supply implications of a bilingual preschool policy
Abstract:
Previous research supports the effectiveness of preschool in various contexts, yet there is limited evidence whether universal-type preschool policies induce changes in enrollment. While certain states have enacted universal preschool policies, some have also considered bilingual preschool mandates, either as a supplementary or stand-alone policy, requiring schools to open up bilingual classrooms for children from non-English speaking families. The question of whether bilingual preschool policies can induce enrollment and close achievement gaps between English learners and English speakers is particularly important today for urban cities and states with large immigrant populations. In this study, I exploit exogenous variation from the first bilingual prekindergarten mandate in Illinois to estimate the causal effects on preschool enrollment and maternal labour supply of recently immigrated and Hispanic families. Utilizing a difference-in-differences strategy, estimates suggest significant effects on preschool enrollment between 18% and 20% and no effects of increasing maternal labour supply in Illinois. Estimates are robust to various specifications, control groups, and timeframes. I use the analysis to further discuss whether universal preschool policies are designed sufficiently for access and inclusion of various student types, and contribute to our understanding on the effectiveness of using childcare subsidies to increase the welfare of low-income families.
Journal: Applied Economics
Pages: 970-986
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646881
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646881
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Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:970-986
Template-Type: ReDIF-Article 1.0
Author-Name: Cristian Barra
Author-X-Name-First: Cristian
Author-X-Name-Last: Barra
Author-Name: Nazzareno Ruggiero
Author-X-Name-First: Nazzareno
Author-X-Name-Last: Ruggiero
Author-Name: Roberto Zotti
Author-X-Name-First: Roberto
Author-X-Name-Last: Zotti
Title: Short- and long-term relation between economic development and government spending: the role of quality of institutions
Abstract:
This paper tests the Wagner’s assumption of the one-sided directional flow moving from economic growth to public spending considering an international database over the 1996–2012 period. By using indicators on the level of country control of corruption, government effectiveness, political stability, rule of law, regulatory quality and voice and accountability, the paper analyses the economic performance-public spending nexus controlling for the quality of the institutions. The empirical evidence supports the existence of the Wagner’s law, showing that, in the short-run, public spending positively reacts to a positive shock in national income, with a lower magnitude for democratic countries. In the long run, the error-correction model shows the convergence between public spending and national output occurring less quickly for non-democratic, low-income and to a smaller extent for non-OECD countries. Institutional quality, such as effort in controlling corruption and the presence of regulations that permit and promote private sector development, may help reducing the amount of per capita public spending and making it more productive. Higher expenses in compositional amenities such as public services for the elderly may explain why public spending per capita will increase the most in economies with a higher share of the population that need healthcare facilities.
Journal: Applied Economics
Pages: 987-1009
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646884
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646884
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Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:987-1009
Template-Type: ReDIF-Article 1.0
Author-Name: Kassoum Ayouba
Author-X-Name-First: Kassoum
Author-X-Name-Last: Ayouba
Author-Name: Julie Le Gallo
Author-X-Name-First: Julie
Author-X-Name-Last: Le Gallo
Author-Name: Andrés Vallone
Author-X-Name-First: Andrés
Author-X-Name-Last: Vallone
Title: Beyond GDP: an analysis of the socio-economic diversity of European regions
Abstract:
This paper aims to analyze the socioeconomic diversity of the European Union (EU-28) regions from a dynamic perspective. For that purpose, we combine a series of exploratory space-time analysis approaches to multiple Factor Analysis (MFA) applied to a large range of indicators collected at the NUTS-2 level for the period 2000–2015 for the EU-28. First, we find that the first factor of MFA, interpreted as economic development (ECO-DEV), is spatially clustered and that a moderate convergence process is at work between European regions from 2000 to 2015. Second, when comparing these results with those obtained for Gross Domestic Product (GDP) per capita, we show that the convergence pattern detected with GDP per capita is more pronounced: ECO-DEV adjusts slower over time compared to GDP per capita. Third, pictures provided by the remaining interesting factors, capturing educational attainment, population dynamics and employment, are very different.
Journal: Applied Economics
Pages: 1010-1029
Issue: 9
Volume: 52
Year: 2020
Month: 2
X-DOI: 10.1080/00036846.2019.1646885
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646885
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Handle: RePEc:taf:applec:v:52:y:2020:i:9:p:1010-1029
Template-Type: ReDIF-Article 1.0
Author-Name: Ioanna Konstantakopoulou
Author-X-Name-First: Ioanna
Author-X-Name-Last: Konstantakopoulou
Title: The effects of government expenditure on imports in the Eurozone reconsidered: evidence from panel data
Abstract:
This study examines the impact of government expenditure on imports. The empirical analysis is based on annual data of the euro area countries for the period 1995–2015. We employ econometric methods that mitigate heterogeneity and cross-sectional dependence. We provide empirical indications that the components of expenditure have different impact on imports demand. The findings of this study indicate that the import context of government expenditure is lower than the import context of others expenditure components. Finally, we find that an increase in government expenditure leads to an increase in imports; this implies that, ceteris paribus that it can lead to a deterioration of the trade balance.
Journal: Applied Economics
Pages: 3231-3239
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418081
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418081
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Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3231-3239
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Deutscher
Author-X-Name-First: Christian
Author-X-Name-Last: Deutscher
Author-Name: Bernd Frick
Author-X-Name-First: Bernd
Author-X-Name-Last: Frick
Author-Name: Marius Ötting
Author-X-Name-First: Marius
Author-X-Name-Last: Ötting
Title: Betting market inefficiencies are short-lived in German professional football
Abstract:
In this article, we argue that potential inefficiencies on betting markets are more likely to exist at the very beginning of a season, when the available information on the teams’ playing strength is difficult to evaluate. This lack of reliable information should be particularly large in the case of recently promoted teams that have typically undergone major changes in the composition of their roster following their promotion. Without any information on the latter teams’ potential performance, they are particularly difficult to evaluate, which may eventually lead to inefficiencies and positive returns on investment in the betting market. We analyse odds from German first division Bundesliga soccer for the seasons from 2002/03 to 2015/16 to find betting market inefficiencies at the start of the season. As expected, betting on recently promoted team wins generates temporarily positive returns, especially for away games. These results suggest bookmakers to underestimate promoted teams’ ability to familiarize with the conditions in the new league, such as having to play in front of larger, often hostile crowds.
Journal: Applied Economics
Pages: 3240-3246
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1418082
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1418082
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Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3240-3246
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Rougieux
Author-X-Name-First: Paul
Author-X-Name-Last: Rougieux
Author-Name: Olivier Damette
Author-X-Name-First: Olivier
Author-X-Name-Last: Damette
Title: Reassessing forest products demand functions in Europe using a panel cointegration approach
Abstract:
In a panel of European countries, we analyse paper products, sawnwood and wood panels consumption data. With this object, we use a classical demand model where national consumption depends on real GDP and real prices. In contrast to previous panel estimations in the literature, we highlight non-stationarity time series which can lead to spurious regressions. We explicitly take into account the issue by using recent panel cointegration techniques. Cointegration is present for printing paper and fibreboard, though less clear cut for other products. Then we estimate demand elasticities and find that GDP elasticities are significantly lower than estimates from the literature. Finally, we simulate the implications of modified demand elasticities by using a partial equilibrium model of the forest sector. For most products, changes in elasticities would lead to lower projected demand and lower prices over a 20-year time horizon. Lower demand for solid wood and wood fibre would lead to less tensions with fuel wood- and wood-based chemical markets. In a context of rising interest for renewable bio-based products, updated long-term demand models contribute to the analysis of the forest sector’s sustainability.
Journal: Applied Economics
Pages: 3247-3270
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420887
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420887
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Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3247-3270
Template-Type: ReDIF-Article 1.0
Author-Name: Jin Young Lee
Author-X-Name-First: Jin Young
Author-X-Name-Last: Lee
Title: The upward trend in women’s college-going: the role of teenagers’ anticipated future labour force attachment
Abstract:
This article focuses on the role of teenagers’ anticipated labour force participation in explaining the upward trend in U.S. women’s college-going. A simple conceptual model implies that individuals with more anticipated lifetime hours of work are more likely to invest in college education. My analysis using data from three National Longitudinal Surveys supports the theoretical implication. This finding, combined with the trend towards higher work expectations of young women across birth cohorts, may account in part for the upward trends in women’s college attendance and completion.
Journal: Applied Economics
Pages: 3271-3284
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420888
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420888
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Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3271-3284
Template-Type: ReDIF-Article 1.0
Author-Name: Qian Long Kweh
Author-X-Name-First: Qian Long
Author-X-Name-Last: Kweh
Author-Name: Wen-Min Lu
Author-X-Name-First: Wen-Min
Author-X-Name-Last: Lu
Author-Name: Mohammad Nourani
Author-X-Name-First: Mohammad
Author-X-Name-Last: Nourani
Author-Name: Mohd Hisyam Ghazali @ Mohd Zain
Author-X-Name-First: Mohd Hisyam
Author-X-Name-Last: Ghazali @ Mohd Zain
Title: Risk management and dynamic network performance: an illustration using a dual banking system
Abstract:
This study applies dynamic network data envelopment analysis to compare a dual banking system, namely conventional and Islamic banks, with emphasis on risk measures. Non-oriented, variable return-to-scale dynamic network slacks-based measure is used to model the banking performance for the period 2008–2012. Under the consideration of risk measures, the findings highlight that Islamic banks excel in managerial efficiency while conventional banks surpass in profitability efficiency. Furthermore, the regression results find that the number of directors on the risk management committee has a positive impact on banking performance. Meanwhile, the high number of independent directors improves the profitability efficiency but worsens the managerial efficiency.
Journal: Applied Economics
Pages: 3285-3299
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420889
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420889
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Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3285-3299
Template-Type: ReDIF-Article 1.0
Author-Name: Jian-Xin Wu
Author-X-Name-First: Jian-Xin
Author-X-Name-Last: Wu
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Title: Urban–rural gap and poverty traps in China: A prefecture level analysis
Abstract:
Urban–rural gap and regional inequality are long-standing problems in China and result in considerable number of studies. This article examines the dynamic behaviours of incomes for both urban and rural areas with a prefectural data set. The analysis is conducted by using a distribution dynamics approach, which have advantages in examination on persistence, polarization and convergence clubs. The results show that persistence and immobility are the dominant characteristics in the income distribution dynamics. The prefectural urban and rural areas converge into their own steady states differentiated in income levels. This pattern of urban–rural gap also exists in three regional groups, namely the eastern, central and western regions. Examination on the dynamics of the poorest areas shows that geographical poverty traps exist in both urban and rural prefectural areas. Our results indicate that more policy interventions are required to narrow down the urban–rural gap and to eliminate the poverty traps in China.
Journal: Applied Economics
Pages: 3300-3314
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420890
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420890
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Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3300-3314
Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Shiyi Li
Author-X-Name-First: Shiyi
Author-X-Name-Last: Li
Title: Soft or hard information? A trade-off selection of environmental disclosures by way of peer imitation and geographical distance
Abstract:
With the public pressure increasing, increasingly more number of studies explore how managers respond to outer pressures by using the environmental disclosure tool. However, previous studies ignore systematic research on the condition, duplicity and consequences of environmental disclosures. This article studies how geographical distance and peer imitation influence managers’ selection of soft and hard environmental disclosures and their economic consequences based on cost-benefit trade-off models and empirical data. The results indicate that when public pressure increases sharply, geographical distance has a negative influence on hard environmental disclosures, and peer imitation has a positive influence on soft environmental disclosures. Under the joint effect of two factors, managers tend to disclose soft environmental information more than hard environmental information, which cannot only mitigate potential risks but also ensure good economic consequences. To restrict managers’ opportunistic disclosure behaviour and improve the disclosing level and quality of environmental information, detailed standard norms and heavy punishment measures should be established, and regulating departments should regulate the disclosure behaviour of distanced firms and check the redundancy of soft environmental information to ensure whether the same information is repeatedly disclosed in the annual reports.
Journal: Applied Economics
Pages: 3315-3330
Issue: 30
Volume: 50
Year: 2018
Month: 6
X-DOI: 10.1080/00036846.2017.1420891
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1420891
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Handle: RePEc:taf:applec:v:50:y:2018:i:30:p:3315-3330
Template-Type: ReDIF-Article 1.0
Author-Name: H. Ben Hassine
Author-X-Name-First: H.
Author-X-Name-Last: Ben Hassine
Author-Name: F. Boudier
Author-X-Name-First: F.
Author-X-Name-Last: Boudier
Author-Name: C. Mathieu
Author-X-Name-First: C.
Author-X-Name-Last: Mathieu
Title: The two ways of FDI R&D spillovers: evidence from the French manufacturing industry
Abstract:
Using French firm-level panel data, this study investigates R&D spillovers from inward foreign direct investment (FDI) with respect to both horizontal and vertical linkages (backward and forward). Using a Crepon, Duguet and Mairesse (CDM) model, we estimate an R&D-augmented Cobb–Douglas production function to assess the impact of R&D spillovers on firm performance. The results emphasize that international spillovers (from foreign affiliates to local firms) have a greater effect on firm performance than reverse spillovers (from local firms to foreign affiliates) and are more likely to be backward than forward. Moreover, the effect of backward spillovers depends on a firm’s absorptive capacity and is amplified in the case of outsourcing relationships.
Journal: Applied Economics
Pages: 2395-2408
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240345
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240345
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Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2395-2408
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose
Author-X-Name-Last: Arreola Hernandez
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Author-Name: Mazin A. M. Al Janabi
Author-X-Name-First: Mazin A. M.
Author-X-Name-Last: Al Janabi
Author-Name: Juan Carlos Reboredo
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Reboredo
Title: Global financial crisis and dependence risk analysis of sector portfolios: a vine copula approach
Abstract:
We use regular vine (r-vine), canonical vine (c-vine) and drawable vine (d-vine) copulas to examine the dependence risk characteristics of three 20-stock portfolios from the retail, manufacturing and gold-mining equity sectors of the Australian market in periods before, during and after the 2008–2009 global financial crisis (GFC). Our results indicate that the retail portfolio is less risky than the manufacturing counterpart in the crisis period, while the gold-mining portfolio is less risky than both the retail and manufacturing sector portfolios. Both the retail and gold stocks display a higher propensity to yield positively skewed returns in the crisis periods, contrary to the manufacturing stocks. The r-vine is found to best capture the multivariate dependence structure of the stocks in the retail and gold-mining portfolios, while the d-vine does it for the manufacturing stock portfolio. These findings could be used to develop dependence risk- and investment risk-adjusted strategies for investment, rebalancing and hedging which more adequately account for the downside risk in various market conditions.
Journal: Applied Economics
Pages: 2409-2427
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240346
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240346
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Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2409-2427
Template-Type: ReDIF-Article 1.0
Author-Name: Bi-Huei Tsai
Author-X-Name-First: Bi-Huei
Author-X-Name-Last: Tsai
Title: Predicting the competitive relationships of industrial production between Taiwan and China using Lotka–Volterra model
Abstract:
This work is the first to apply Lotka–Volterra model combined with genetic algorithm (GA) to predict the production relationships of high-tech industry among different areas. Previous studies analysed the trade interdependency among various countries, but few studies have highlighted the quantitative evidence of production relationships. Thus, this study utilizes motherboard shipment volumes to predict the competitive relationships of industrial production on both sides of the Taiwan Strait. Specifically, this work uses simultaneous non-linear least square regression in combination with GAs for numerical parameter optimization of the proposed Lotka–Volterra model. The results of parameter estimation reveal that shipment growth in China substantially promotes that in Taiwan, whereas the shipment growth in Taiwan curtails that in China. The standard deviation of the estimated parameters from the 3000 iterated simulations is small, confirming the reliability and stability of our parameter estimations. According to equilibrium analysis, the results of Lyapunov function prove that the shipments of China and Taiwan will reach a stable long-term equilibrium. The potential production from China will ultimately be nearly 16 times as large as that from Taiwan. Finally, the analytical results of forecast accuracy confirm that Lotka–Volterra model performs better than conventional S-curve diffusion model in predicting motherboard shipments.
Journal: Applied Economics
Pages: 2428-2442
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240347
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240347
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Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2428-2442
Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Kang Wang
Author-X-Name-First: Wei-Kang
Author-X-Name-Last: Wang
Author-Name: Wen-Min Lu
Author-X-Name-First: Wen-Min
Author-X-Name-Last: Lu
Author-Name: Qian Long Kweh
Author-X-Name-First: Qian Long
Author-X-Name-Last: Kweh
Author-Name: Yu-Li Liu
Author-X-Name-First: Yu-Li
Author-X-Name-Last: Liu
Title: Decentralized and concentrated investments in China and the performance of Taiwanese listed electronic companies
Abstract:
Ever since China surpassed Taiwan to become the largest exporter of electronic products, dependence between the two sides has deepened, which prompts Taiwanese companies to go public in China. This study conducted the data envelopment analysis (DEA) and regression analysis to analyse the impacts of the depth and breadth of investments in China on the performance of Taiwanese listed electronic companies. The empirical results show that, the breath of the investments in China has a positive correlation with the performance of Taiwanese companies; while the depth of investments in China has a negative and significant effect on the performances due to the companies’ lack of know-how, which leads to a high-learning cost. In summary, companies should strategize their decentralized and concentrated investments in China.
Journal: Applied Economics
Pages: 2443-2455
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240348
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240348
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Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2443-2455
Template-Type: ReDIF-Article 1.0
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Ahmet Sensoy
Author-X-Name-First: Ahmet
Author-X-Name-Last: Sensoy
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Analysing dynamic linkages and hedging strategies between Islamic and conventional sector equity indexes
Abstract:
This study analyses the dynamic spillovers across 10 Dow Jones Islamic and conventional sector index pairs. Using various multivariate GARCH models, the results show significant time-varying conditional correlations for all the pairs. Moreover, there is evidence that the conditional correlations for all the sector pairs, except those of the Telecommunication and Utilities sectors, increase after the onset of the global financial crisis (GFC), suggesting non-subsiding risks, contagion effects and gradual greater financial linkages. The Islamic sectors’ risk exposure can be effectively hedged over time in diversified portfolios containing conventional sector stocks. These results provide several practical implications for portfolio managers and policymakers in regard to optimal asset allocations, portfolio risk management and the diversification benefits among these markets.
Journal: Applied Economics
Pages: 2456-2479
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240349
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240349
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Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2456-2479
Template-Type: ReDIF-Article 1.0
Author-Name: Shahriar Kibriya
Author-X-Name-First: Shahriar
Author-X-Name-Last: Kibriya
Author-Name: Zhicheng Phil Xu
Author-X-Name-First: Zhicheng Phil
Author-X-Name-Last: Xu
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Title: The negative consequences of school bullying on academic performance and mitigation through female teacher participation: evidence from Ghana
Abstract:
Exploiting data from Ghanaian schools’ eighth grade students collected in 2011, we estimate the causal effects of school bullying on academic achievement and gender-based mitigating approaches by using propensity score matching (PSM) and doubly robust (DR) estimator approach. We find that students victimized by bullying score at least 0.22 standard deviation lower than their peers in a standardized mathematics examination. Meanwhile, we document that the effect of bullying is significantly attenuated in the presence of female teachers in the classroom. These results hold through a set of robustness checks including placebo regressions and matching quality test. We explain the results through gender difference in teaching paradigm and conclude that a feminine management approach in class is required to reduce the effect of bullying.
Journal: Applied Economics
Pages: 2480-2490
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240350
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240350
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Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2480-2490
Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Xianfang Su
Author-X-Name-First: Xianfang
Author-X-Name-Last: Su
Author-Name: Wanhai You
Author-X-Name-First: Wanhai
Author-X-Name-Last: You
Author-Name: Yinghua Ren
Author-X-Name-First: Yinghua
Author-X-Name-Last: Ren
Title: Asymmetric effects of oil price shocks on stock returns: evidence from a two-stage Markov regime-switching approach
Abstract:
The asymmetric effects of oil price shocks on stock returns have attracted the attention of many researchers in the past several decades. Most of these researchers’ studies, however, do not separate out the sources of oil price shocks when examining the asymmetric effects. In this article, we address this limitation using a two-stage Markov regime-switching approach. Our results indicate that oil supply and demand shocks have a null or minimal impact on stock returns in a low-volatility regime and a statistically significant impact in a high-volatility regime. We observe that oil demand shocks affect stock returns significantly more than oil supply shocks. A positive aggregate demand shock significantly increases stock returns, whereas a positive oil-specific demand shock markedly decreases stock returns. These results have important implications for policymakers and investors.
Journal: Applied Economics
Pages: 2491-2507
Issue: 25
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1240351
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1240351
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Handle: RePEc:taf:applec:v:49:y:2017:i:25:p:2491-2507
Template-Type: ReDIF-Article 1.0
Author-Name: Iljoong Kim
Author-X-Name-First: Iljoong
Author-X-Name-Last: Kim
Author-Name: Jaewook Byeon
Author-X-Name-First: Jaewook
Author-X-Name-Last: Byeon
Author-Name: Dongwon Lee
Author-X-Name-First: Dongwon
Author-X-Name-Last: Lee
Title: Violent crime and female victimization: evidence from metropolitan regions in South Korea
Abstract:
In the economics of crime literature, victimization by crime has received less attention than the supply side of crime. This article investigates the relationship between violent crime and female victimization. We show that violent crime increases with both the overall female exposure and female proportion in the victim-target group. Potential interactions between these female characteristics and income inequality are also shown to influence the incidence of violent crime. Empirically, we introduce proxies for female characteristics that better reflect our hypotheses – for example, young unmarried female-headed households (for exposure to crime) and new job gains among females (for economic status). Using a panel of South Korean metropolitan regions, 2000–2011, we find that a certain limited change in these female characteristics could account for as much as 16% of violent crime.
Journal: Applied Economics
Pages: 4601-4616
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287860
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287860
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Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4601-4616
Template-Type: ReDIF-Article 1.0
Author-Name: Marie-Laure Breuillé
Author-X-Name-First: Marie-Laure
Author-X-Name-Last: Breuillé
Author-Name: Julie Le Gallo
Author-X-Name-First: Julie
Author-X-Name-Last: Le Gallo
Title: Spatial fiscal interactions among French municipalities within inter-municipal groups
Abstract:
Based on a unique data set of French municipalities and a large number of budgetary variables, we estimate the extent of spatial fiscal interaction among the 33,484 French municipalities in 2008 by accounting for inter-municipal cooperation. Using a spatial autoregressive model with inter-municipal group fixed effects, we show that spatial interactions among French municipalities are inflated by correlated effects that affect similarly municipalities that cooperate together. Removing these confounding effects leads to considerably smaller positive spatial interactions for tax decisions and even negative ones for capital expenditures. In addition, we observe a clear distinction between complementary choices on current budget items and substitutable choices on capital budget items.
Journal: Applied Economics
Pages: 4617-4637
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287861
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287861
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Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4617-4637
Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: Cost relationships and globalization in the Australian clothing industry
Abstract:
Australia developed a substantial clothing industry with protectionist international trade policies, including prohibitively high tariffs, quotas, and subsidies. The industry became an important source of jobs, with over 6.5 per cent of total manufacturing employment at the close of the 1960s. As Australia has moved towards freer trade, employment in clothing production has fallen substantially. The question of whether the clothing industry can remain viable in its new environment became an important issue. Here, we examine two crucial economic considerations relating to that question: economies of scale and relations (substitute/complementary) between the various inputs, both domestic and outsourced foreign. The findings strongly indicate the presence of economies of scale and that the industry has reduced its unit costs over the period of study. The results also suggest that most of the inputs are substitutes for one another, although only the estimated cross price elasticities between capital and labour are highly statistically significant in both models utilized in the study. To be successful in the future, the Australian clothing industry will likely need to find market niches where it can offer superior products and/or service as well as further reduce its unit costs.
Journal: Applied Economics
Pages: 4638-4656
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287864
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287864
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Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4638-4656
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Borghesi
Author-X-Name-First: Richard
Author-X-Name-Last: Borghesi
Title: Pay for play: the financial value of NCAA football players
Abstract:
We explore the financial value of National Collegiate Athletic Association (NCAA) football recruits and establish a wage schedule based on the star ratings assigned to high school athletes by an independent talent evaluation agency. Evidence suggests that the contribution of higher-ranking recruits to team wins significantly increases revenues. While the NCAA currently prohibits universities from paying student-athletes, we estimate that if amateurism rules were rescinded and college football players were compensated according to their revenue-generating abilities then five-, four-, three-, and low-star players would be entitled to annual salaries of $799,000, $361,000, $29,000, and $21,000, respectively, in addition to athletic scholarships covering tuition, books, and room and board.
Journal: Applied Economics
Pages: 4657-4667
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287865
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287865
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Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4657-4667
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tatchawan Kanitpong
Author-X-Name-First: Tatchawan
Author-X-Name-Last: Kanitpong
Title: Do exchange rate changes have symmetric or asymmetric effects on the trade balances of Asian countries?
Abstract:
Recently the linear ARDL approach was modified and a non-linear version of the same approach that is used mostly to assess asymmetric effects of some exogenous variables on the dependent variable was introduced. The non-linear model was recently used by one study to show that indeed exchange rate changes have asymmetric effects on the trade balance of a few advanced countries. The same was demonstrated for transition economies by another study. In this article, we provide additional asymmetric effects from seven Asian economies by showing that in most cases we find evidence of short-run and long-run asymmetric effects of exchange rate changes on the trade balance. Like other studies, our findings are country specific.
Journal: Applied Economics
Pages: 4668-4678
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287867
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287867
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Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4668-4678
Template-Type: ReDIF-Article 1.0
Author-Name: Leo de Haan
Author-X-Name-First: Leo
Author-X-Name-Last: de Haan
Author-Name: Jan Willem van den End
Author-X-Name-First: Jan Willem
Author-X-Name-Last: van den End
Author-Name: Philip Vermeulen
Author-X-Name-First: Philip
Author-X-Name-Last: Vermeulen
Title: Lenders on the storm of wholesale funding shocks: saved by the central bank?
Abstract:
We provide empirical evidence on banks’ responses to shocks in the wholesale funding market, using data of 181 euro area banks over the period from August 2007 to June 2013. Responses to funding liquidity shocks for both banks’ lending volumes and loan rates, to households and corporates, are analysed in a panel VAR framework. We thereby distinguish banks by country, extent of Eurosystem borrowing, bank size and capitalization. The results show that shocks in the securities and interbank markets have significant effects on loan rates and credit supply, particularly of banks in stressed countries of the periphery. The results also suggest that central bank liquidity has mitigated this effect on lending volumes. Lending to nonfinancial corporations is more sensitive to wholesale funding shocks than lending to households. Lending volumes of large banks that are typically more dependent on wholesale funding and banks with large exposure to sovereign bonds show stronger responses to wholesale funding shocks.
Journal: Applied Economics
Pages: 4679-4703
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1287868
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1287868
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Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4679-4703
Template-Type: ReDIF-Article 1.0
Author-Name: Vasiliki Chatzikonstanti
Author-X-Name-First: Vasiliki
Author-X-Name-Last: Chatzikonstanti
Title: Breaks and outliers when modelling the volatility of the U.S. stock market
Abstract:
This study analyses volatility persistence of the U.S. stock market, after taking into account the role of breaks and outliers. By employing a wavelet-based algorithm, it identifies several outliers which are comfortably associated with major events such as the ‘Black Monday’ and the Asian crisis. There is also evidence of clustering of breaks and a substantial variation in the properties of the identified segments.
Journal: Applied Economics
Pages: 4704-4717
Issue: 46
Volume: 49
Year: 2017
Month: 10
X-DOI: 10.1080/00036846.2017.1293785
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1293785
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Handle: RePEc:taf:applec:v:49:y:2017:i:46:p:4704-4717
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Beaumais
Author-X-Name-First: Olivier
Author-X-Name-Last: Beaumais
Author-Name: Sauveur Giannoni
Author-X-Name-First: Sauveur
Author-X-Name-Last: Giannoni
Title: Insiders vs. outsiders in the hotel sector
Abstract:
We investigate whether entering an official hotel classification system is as lucrative as suggested in the tourism management literature. Indeed, in countries in which the official hotel classification system is voluntary, a substantial fraction of hotels choose not to enter the system, and are outsiders. Considering that being classified (being insider) as a predictor of the rate structure may raise an endogeneity issue, we apply the recursive semi-ordered probit model to control for endogeneity and appropriately assess the effect of being classified on price rates. Using a sample of 357 hotels of Corsica, we show that, in contrast to previous research, classification does not provide any rate premium. We also fully derive conditional probabilities and partial effects on differences in conditional probabilities within the recursive semi-ordered probit model.
Journal: Applied Economics
Pages: 5698-5711
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488061
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488061
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Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5698-5711
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Causal effects of the United States and Japan on Pacific-Rim stock markets: nonparametric quantile causality approach
Abstract:
This article adopts a nonparametric quantile causality approach to examine the causal effects of the U.S. and Japan stock markets on the stock markets of the Pacific-Rim region. This approach allows us to detect not only nonlinear causalities in conditional return (mean) and conditional volatility (variance) but also the asymmetries of causalities under extreme market conditions (bullish vs. bearish states). Our results provide significant evidence of causality in return and volatility at different points of the conditional distributions of returns, with the greater effects from the U.S. than from Japan. Asymmetric quantile causality patterns are particularly pronounced in the case of Japan.
Journal: Applied Economics
Pages: 5712-5727
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488062
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488062
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Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5712-5727
Template-Type: ReDIF-Article 1.0
Author-Name: Jens-Peter Loy
Author-X-Name-First: Jens-Peter
Author-X-Name-Last: Loy
Author-Name: Carsten Steinhagen
Author-X-Name-First: Carsten
Author-X-Name-Last: Steinhagen
Author-Name: Christoph Weiss
Author-X-Name-First: Christoph
Author-X-Name-Last: Weiss
Author-Name: Birgit Koch
Author-X-Name-First: Birgit
Author-X-Name-Last: Koch
Title: Price transmission and local market power: empirical evidence from the Austrian gasoline market
Abstract:
We analyse the impact of local market power on price margins and different dimensions of price adjustment dynamics (speed and asymmetry of price transmission) using data for a large number of individual gasoline stations in Austria. Specific attention is paid to threshold effects in price adjustment. Our results clearly suggest that the speed of price transmission between the Brent crude oil index and retail diesel prices is higher in a more competitive environment. While evidence on the relationship between local market power and asymmetries in the speed of price adjustment is mixed, our findings regarding asymmetries in price thresholds are clear: in regions where competition from neighbouring rivals is weak and/or consumers’ price elasticity of demand is low (stations located on the highway), positive thresholds significantly exceed negative ones, which corresponds to the ‘rockets and feathers phenomenon’. As expected, we observe that prices are lower in more competitive local markets.
Journal: Applied Economics
Pages: 5728-5746
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488063
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488063
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Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5728-5746
Template-Type: ReDIF-Article 1.0
Author-Name: David C. Vitt
Author-X-Name-First: David C.
Author-X-Name-Last: Vitt
Author-Name: Alexander F. McQuoid
Author-X-Name-First: Alexander F.
Author-X-Name-Last: McQuoid
Author-Name: Charles Moore
Author-X-Name-First: Charles
Author-X-Name-Last: Moore
Author-Name: Stephen Sawyer
Author-X-Name-First: Stephen
Author-X-Name-Last: Sawyer
Title: Trigger warning: the causal impact of gun ownership on suicide
Abstract:
With a growing debate over tighter firearm regulations, we consider an important social consequence of increased firearm access: increased firearm suicides. Using data from the federal criminal background check system, we consider the impact of firearm ownership on firearm suicide rates. To deal with concerns of identification, we instrument for firearm background checks with state-year-level Google search intensity for phrases that reflect fear of future gun shortages and learning about the constitutional rights of firearm owners. We find that an increase in firearm ownership has a sizable and statistically significant impact on firearm suicide rates. A 10% increase in firearm ownership increases firearm suicide rates by approximately 3%, which is five times larger than non-instrumented estimates. Furthermore, we find no effect of gun ownership on non-firearm suicide rates, suggesting our findings are not simply capturing a suicide method substitution effect. The results are consistent with a variety of validity and robustness tests. Our results make clear the link between firearm ownership and firearm suicide rates, which have increased dramatically over the last decade.
Journal: Applied Economics
Pages: 5747-5765
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488064
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488064
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Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5747-5765
Template-Type: ReDIF-Article 1.0
Author-Name: M.A. Véganzonès-Varoudakis
Author-X-Name-First: M.A.
Author-X-Name-Last: Véganzonès-Varoudakis
Author-Name: H. T. M. Nguyen
Author-X-Name-First: H. T. M.
Author-X-Name-Last: Nguyen
Title: Investment climate, outward orientation and manufacturing firm productivity: new empirical evidence
Abstract:
Drawing on the World Bank Enterprise Surveys, we revisit the link between firm-level investment climate and productive performance for a panel of enterprises surveyed twice in time in 70 developing countries and 11 manufacturing industries. We take advantage of the time dimension available for an increasing number of countries to tackle the endogeneity issue stressed in previous studies. We also use pertinent econometric techniques to address other biases inherent in the data (e.g.measurement errors, missing observations and multicollinearity). Our results reinforce previous findings by validating, with a larger than usual sample of countries and industries, the importance of a larger set of environment variables. We show that infrastructure quality, information & communication technologies, skills and experience of the labour force, cost of and access to financing, security and political stability, competition and government relation contribute to firms’ and countries’ performances gap. The empirical analysis also illustrates that firms which choose an outward orientation have higher productivity level. Nevertheless, outward oriented enterprises are more sensitive to investment climate limitations. These findings have important policy implications by showing which dimensions of the business environment, in which industry, could help manufacturing firms to be more competitive in the present context of increasing globalization.
Journal: Applied Economics
Pages: 5766-5794
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488065
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488065
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Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5766-5794
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Cipollini
Author-X-Name-First: Andrea
Author-X-Name-Last: Cipollini
Author-Name: Fabio Parla
Author-X-Name-First: Fabio
Author-X-Name-Last: Parla
Title: Credit demand and supply shocks in Italy during the Great Recession
Abstract:
In this article, we use Structural VAR analysis to disentangle credit demand and supply shocks and their effect on real economic activity in Italy during the 2008 to 2014 crisis period. The three endogenous variables considered are the loan interest rate, the loans growth rate and the employment to population ratio. The data are observed at annual frequency for each of 103 Italian provinces. The empirical evidence suggests that the variance of the shocks varies across four Italian macro-regions: North, Centre, South and Islands, and hece heteroscedasticity is used to identify (ex ante) the structural shocks. Sign restrictions are used to interpret shocks ex post. The empirical findings suggest a prominent role of credit supply shock in shaping real activity dynamics and also that credit crunch hits the North of Italy less than the remaining macro-regions, especially the South of Italy.
Journal: Applied Economics
Pages: 5795-5813
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488066
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488066
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Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5795-5813
Template-Type: ReDIF-Article 1.0
Author-Name: Berangere Legendre
Author-X-Name-First: Berangere
Author-X-Name-Last: Legendre
Author-Name: Annaig-C. Pedrant
Author-X-Name-First: Annaig-C.
Author-X-Name-Last: Pedrant
Author-Name: Mareva Sabatier
Author-X-Name-First: Mareva
Author-X-Name-Last: Sabatier
Title: Should I stay or should I go? An econometric analysis of retirement decisions by couples
Abstract:
This article analyses retirement decisions from a household perspective, treating the retirement timing of spouses as potentially interdependent choices. To identify the determinants of retirement decisions by couples and the effects of spousal retirement, this research estimates bivariate probit models in a multi-country setting. The results show a significant joint retirement trend: both men and women are more likely to retire if their spouse already has retired. Strong asymmetric behaviours arise by gender though, with high crosscountry heterogeneity, reflecting institutional differences in both pension and public health systems.
Journal: Applied Economics
Pages: 5814-5829
Issue: 53
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488067
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488067
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Handle: RePEc:taf:applec:v:50:y:2018:i:53:p:5814-5829
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaofen Chen
Author-X-Name-First: Xiaofen
Author-X-Name-Last: Chen
Title: Globalization and household saving: is there a link?
Abstract:
This article proposes that globalization can affect household saving in the long run in a number of ways. Social interactions between different cultures can induce value changes, which can result in shifts in consumption and saving behaviour. International trade allows consumers to have easier access to status goods, stimulating consumption and dampening saving. Extending from Veblen’s conspicuous consumption theory, saving may also decrease when globalization leads to greater population mobility and fosters urbanization, thus enhancing the importance of consumption as a way to display wealth. In addition, financial globalization reduces credit constraints and allows households to save less. Using cross-country data from the United Nations (UN), the OECD, and other sources, this article finds evidence that household saving declines as globalization deepens, especially in the social and cultural dimensions.
Journal: Applied Economics
Pages: 2797-2816
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248355
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248355
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Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2797-2816
Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Author-Name: Adrian (Wai-Kong) Cheung
Author-X-Name-First: Adrian (Wai-Kong)
Author-X-Name-Last: Cheung
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: Quantile serial dependence in crude oil markets: evidence from improved quantilogram analysis with quantile wild bootstrapping
Abstract:
We examine the quantile serial dependence in crude oil prices based on the Linton and Whang’s quantile-based portmanteau test which we improved by means of quantile wild bootstrapping (QWB). Through Monte Carlo simulation, we find that the quantile wild bootstrap-based portmanteau test performs better than the bound testing procedure suggested by Linton and Whang. We apply the improved test to examine the efficiency of two crude oil markets – WTI and Brent. We also examine if the dependence is stable via rolling sample tests. Our results show that both WTI and Brent are serially dependent in all, except the median quantiles. These findings suggest that it may be misleading to examine the efficiency of crude oil markets in terms of mean (or median) returns only. These crude oil markets are relatively more serially dependent in non-median ranges.
Journal: Applied Economics
Pages: 2817-2828
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248356
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248356
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Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2817-2828
Template-Type: ReDIF-Article 1.0
Author-Name: Sascha L. Schmidt
Author-X-Name-First: Sascha L.
Author-X-Name-Last: Schmidt
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Author-Name: Verena Jung
Author-X-Name-First: Verena
Author-X-Name-Last: Jung
Title: Perceived trade-off between education and sports career: evidence from professional football
Abstract:
To explore the attitudes towards risky career choices of young people in highly competitive environments, we surveyed almost 1000 football players in the youth academies of German professional clubs (Bundesliga), who must generally decide early in their careers whether or not to risk quitting school to focus solely on a professional football career. Based on the survey responses, we empirically analysed which factors influence these youths’ tendencies to choose a high-risk career option over a lower risk one. Our results seem to indicate that such risk taking in competitive environments can be explained by potential benefits expected from this decision, as well as judgments about the likelihood of achieving the desired career. Risk attitudes towards career choices vary by differences in individuals’ estimates of the potential benefits and in particular, in their own assessments of the likelihood of success, which is an important driver of risk acceptance. We also found that opportunity cost considerations influence risk acceptance: the better the low-risk option, the less willing the individual to give it up for a high-risk alternative. In addition, both national origin and level of cultural integration play a role in attitudes towards risky career choices, with reductions in the latter increasing the risk premium of quitting school.
Journal: Applied Economics
Pages: 2829-2850
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248357
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248357
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Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2829-2850
Template-Type: ReDIF-Article 1.0
Author-Name: David Grigorian
Author-X-Name-First: David
Author-X-Name-Last: Grigorian
Author-Name: Vlad Manole
Author-X-Name-First: Vlad
Author-X-Name-Last: Manole
Title: Sovereign risk and deposit dynamics: evidence from Europe
Abstract:
The unprecedented expansion of sovereign balance sheets since the beginning of the global crisis has given a new meaning to the term sovereign risk. Developments in Europe since early 2010 revealed new challenges for the functioning of private banks in an environment of heightened sovereign risk and may have contributed to deleveraging. The article uses an innovative way of measuring the perception of sovereign risk and its impact. Using an extension of a common market discipline framework, it shows that exposure to sovereign risk may have limited the ability of banks in Europe to collect deposits. Potential identification issues between deposits and bank efficiency are controlled by using data envelopment analysis (DEA). The results are robust to inclusion of conventional measures of bank performance and the sector-wide holdings of foreign sovereign debt.
Journal: Applied Economics
Pages: 2851-2860
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248358
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248358
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Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2851-2860
Template-Type: ReDIF-Article 1.0
Author-Name: Genevieve Knight
Author-X-Name-First: Genevieve
Author-X-Name-Last: Knight
Author-Name: Michael White
Author-X-Name-First: Michael
Author-X-Name-Last: White
Title: Training and employee mobility in the British private and public sectors
Abstract:
The realization of the value of training for employees can take time as the training contributes dynamically to an extended development process. This research examines the empirical returns to training in three post-training situations: when the employee remains in the same job and with the same employer; when the employee transfers to a different job but remains with the same employer (internal mobility); and when the employee moves to a different employer (external mobility). Panel data and fixed effects (FE) methodology are used to quantify the joint effects of in-job training and mobility, while minimizing the potentially biasing effect of unobserved ability. In a period when public sector employment in Britain was contracting sharply, the short-term returns to training are nonetheless greater in the public sector, while the medium-term returns for both public sector and private sector employees depend on remaining within sector. The general/specific training mix, institutional influences, adverse selection, and the concept of ‘transferable’ training, all contribute to interpretation.
Journal: Applied Economics
Pages: 2861-2874
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248359
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248359
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Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2861-2874
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Sakellariou
Author-X-Name-First: Chris
Author-X-Name-Last: Sakellariou
Title: Private or public school advantage? Evidence from 40 countries using PISA 2012-Mathematics
Abstract:
It is known that in most countries, private school students outperform students in public schools in international assessments. However, the empirical literature recognizes that assessing the true effect of private school attendance requires addressing selection and sorting issues on both observabland unobservables. The existing empirical evidence on the private school effect mostly covers OECD and Latin American countries, with little evidence on other parts of the world. There is recent emerging country-specific evidence doubting the existence of a private school advantage. I use PISA 2012 data for Mathematics and two different methodologies to derive baseline and bias-corrected estimates of the private-dependent and independent school effect for 40 countries. A robust private school advantage is found only in a handful of countries. Public schools generally perform as well as private subsidized schools and outperform independent schools. Accounting for both peer effects and selection is necessary when evaluating school effectiveness, especially in the case of independent schools.
Journal: Applied Economics
Pages: 2875-2892
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1248361
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1248361
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Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2875-2892
Template-Type: ReDIF-Article 1.0
Author-Name: Fang Zhang
Author-X-Name-First: Fang
Author-X-Name-Last: Zhang
Title: Confidence and the transmission of macroeconomic uncertainty in U.S. recessions
Abstract:
This article studies the role of confidence in the transmission of uncertainty shocks during U.S. recessions. I use smooth-transition vector-autoregression (ST-VAR) to examine the regime-dependent effect of uncertainty shocks, and a counterfactual decomposition to isolate the role of confidence when the economy is in different regimes, recessions and non-recessions. I find that shutting down the confidence channel leads to greatly dampened and less persistent effects of uncertainty shocks, especially during recessions. I also find that the cross-regime difference in the role of confidence can largely explain the cross-regime short-run difference in the effects of uncertainty shocks.
Journal: Applied Economics
Pages: 2893-2909
Issue: 29
Volume: 49
Year: 2017
Month: 6
X-DOI: 10.1080/00036846.2016.1251554
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1251554
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Handle: RePEc:taf:applec:v:49:y:2017:i:29:p:2893-2909
Template-Type: ReDIF-Article 1.0
Author-Name: Erika Raquel Badillo
Author-X-Name-First: Erika Raquel
Author-X-Name-Last: Badillo
Author-Name: Rosina Moreno
Author-X-Name-First: Rosina
Author-X-Name-Last: Moreno
Title: What drives the choice of the type of partner in R&D cooperation? Evidence for Spanish manufactures and services
Abstract:
We analyse the heterogeneity in firms’ decisions to engage in R&D cooperation, taking into account the type of partner (competitors, suppliers or customers, and research institutions) and the sector to which the firm belongs (manufactures or services). We use information from the Technological Innovation Panel (PITEC) for Spanish firms and estimate multivariate probit models corrected for endogeneity which explicitly consider the interrelations between the different R&D cooperation strategies. We find that placing a higher importance to publicly available information (incoming spillovers), receiving public funding and firm size increase the probability of cooperation with all kind of partners but the role is much stronger in the case of cooperative agreements with research institutions and universities. Our results also suggest that R&D intensity and the importance attributed to the lack of qualified personnel as a factor hampering innovation are key factors influencing positively R&D cooperation activities in the service sector but not in manufactures.
Journal: Applied Economics
Pages: 5023-5044
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170932
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170932
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Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5023-5044
Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Brunner
Author-X-Name-First: Lawrence
Author-X-Name-Last: Brunner
Author-Name: Joseph Pate
Author-X-Name-First: Joseph
Author-X-Name-Last: Pate
Title: Promoting entry of high-quality workers through US immigration policy
Abstract:
We examine how US immigrants would be affected by applying a simple point system for admission, as Canada does. Since US immigration policy emphasizes family reunification, immigrants have lower education and earnings than natives, with unauthorized immigrants’ education below legal ones. Using American Community Survey data, and Center for Migration Studies data, which allows us to distinguish legal from unauthorized immigrants, we examine the effects of requiring immigrants to meet 2 of 3 conditions: (1) a high school or college degree, (2) being less than 40 years old and (3) working in a professional occupation, while admitting the same numbers of immigrants. This policy changes the source countries of immigrants and there are large positive effects on immigrant earnings. Immigrants’ use of government transfer programs is reduced to below natives and income inequality falls. Finally, with existing policy, immigrant earnings growth is not enough to overtake natives given immigrants’ entering earnings disadvantage. With this point system, immigrants start at a higher level and surpass natives relatively quickly.
Journal: Applied Economics
Pages: 5045-5059
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170933
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170933
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Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5045-5059
Template-Type: ReDIF-Article 1.0
Author-Name: Felisitas Defung
Author-X-Name-First: Felisitas
Author-X-Name-Last: Defung
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis
Abstract:
More than a decade following the severe economic crisis 1997, Indonesia has undergone major regulatory changes in its banking industry. This article examines the impact of these regulatory changes on the relative technical efficiency (TE) of the Indonesian banking industry employing data envelopment analysis (DEA) and censored Tobit regression model. Additionally, the bootstrap approach of Simar and Wilson is employed to provide statistical properties to the DEA efficiency score. The findings show that the industry on average is inefficient over the period of analysis. Also, state-owned and foreign-owned banks are found to be more efficient than any other group of banks. Finally, the impact of regulatory reforms is generally positive and statistically significant.
Journal: Applied Economics
Pages: 5060-5074
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170934
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170934
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Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5060-5074
Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Author-Name: A. Doruk Gunaydin
Author-X-Name-First: A. Doruk
Author-X-Name-Last: Gunaydin
Title: Liquidity and equity returns in Borsa Istanbul
Abstract:
We investigate the relationship between expected returns and liquidity measures in Borsa Istanbul. To do so, we gather a wide range of illiquidity measures that can be applied to the market. Firm-level cross-sectional regressions indicate that there is a positive relationship between various illiquidity measures and one- to six-month ahead stock returns. Findings of the article are robust after using different sample periods and controlling for well-known priced factors, such as market beta, size, book-to-market ratio and momentum. The portfolio analysis reveals that stocks that are in the highest illiquidity quintile earn 7.2%–19.2% higher risk-adjusted annual returns than those in the lowest illiquidity quintile. The illiquidity premium is stronger for small stocks and stocks with higher return volatility and it increases (decreases) during periods of extremely low (high) market returns.
Journal: Applied Economics
Pages: 5075-5092
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170935
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170935
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Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5075-5092
Template-Type: ReDIF-Article 1.0
Author-Name: Sandra Cavaco
Author-X-Name-First: Sandra
Author-X-Name-Last: Cavaco
Author-Name: Edouard Challe
Author-X-Name-First: Edouard
Author-X-Name-Last: Challe
Author-Name: Patricia Crifo
Author-X-Name-First: Patricia
Author-X-Name-Last: Crifo
Author-Name: Antoine Rebérioux
Author-X-Name-First: Antoine
Author-X-Name-Last: Rebérioux
Author-Name: Gwenaël Roudaut
Author-X-Name-First: Gwenaël
Author-X-Name-Last: Roudaut
Title: Board independence and operating performance: analysis on (French) company and individual data
Abstract:
This article studies the relationship between board independence and firm operating performance in French listed companies. We take advantage of an original database, with a time-series dimension that can be used to mitigate heterogeneity and dynamic endogeneity issues. In addition, this database can be disaggregated at the individual (director) level. This design enables us to introduce firm fixed effects and individual fixed effects in firm performance equations, thereby controlling for heterogeneity at the firm and individual levels. Our main result is to document a significant negative relationship between independence and accounting performance. This result suggests that, in the French context, the costs of independence (i.e. the informational gap supported by independent directors compared to insiders and affiliated directors) outweigh the benefits of independence (i.e. the reduction in agency costs).
Journal: Applied Economics
Pages: 5093-5105
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170936
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170936
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Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5093-5105
Template-Type: ReDIF-Article 1.0
Author-Name: Chyan Yang
Author-X-Name-First: Chyan
Author-X-Name-Last: Yang
Author-Name: Tung-Pao Wang
Author-X-Name-First: Tung-Pao
Author-X-Name-Last: Wang
Title: Productivity comparison of European airlines: bootstrapping Malmquist indices
Abstract:
The study explored the operating efficiency and variability of productivity estimates of European airlines. We applied Malmquist productivity indices (MPI) with a bootstrap method to assess the productivities of European airlines in four regions in Europe. The productivity of small-sized airlines lagged further behind that of large-sized airlines because of their inferior technological change (TC) effects derived from inefficient resource allocation to sustain a competitive advantage. This study also indicated that the Western European airlines were more efficient on average than those in other areas of Europe. The applications of Malmquist productivity techniques in assessing the performance of European airlines are highlighted in their effective resource allocation, sustained competitive advantage and optimized operating performance.
Journal: Applied Economics
Pages: 5106-5116
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170937
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170937
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Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5106-5116
Template-Type: ReDIF-Article 1.0
Author-Name: Srinidhi Kanuri
Author-X-Name-First: Srinidhi
Author-X-Name-Last: Kanuri
Author-Name: Robert W. McLeod
Author-X-Name-First: Robert W.
Author-X-Name-Last: McLeod
Title: Sustainable competitive advantage and stock performance: the case for wide moat stocks
Abstract:
‘In business, I look for economic castles protected by unbreachable “Moats”’. Warren Buffett Companies that have sustainable competitive advantages should be able to create a barrier (Moat) to prevent or lessen competition from other firms. The wider the Moat the greater the barrier and the more secure the company’s profitability. Using the Morningstar classification of ‘Wide Moat’ stocks, we construct annually rebalanced equal- and value-weighted portfolios to analyse their performance in order to determine if they deliver superior performance relative to standard benchmark portfolios. The period for our analysis extends from June 2002 through May 2014. We find that the ‘Wide Moat’ portfolios outperform both the S&P 500 and Russell 3000 indices generating higher average monthly and annualized returns, Sharpe Ratio, Sortino Ratio, Treynor Ratio, Omega Ratio, Upside Potential Ratio, M2, M2 Alpha, and cumulative returns. When we compute alpha using Carhart four-factor and Fama–French five-factor models, we find that ‘Wide Moat’ portfolios had significantly positive risk-adjusted alphas with both the models. ‘Wide Moat’ portfolios also lost less value during the 2007–2009 financial crisis compared to both S&P 500 and Russell 3000. In conclusion, we find that ‘Wide Moat’ stocks have created significant value for their investors over the course of our study.
Journal: Applied Economics
Pages: 5117-5127
Issue: 52
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1170938
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1170938
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Handle: RePEc:taf:applec:v:48:y:2016:i:52:p:5117-5127
Template-Type: ReDIF-Article 1.0
Author-Name: Tullio Gregori
Author-X-Name-First: Tullio
Author-X-Name-Last: Gregori
Author-Name: Marco Giansoldati
Author-X-Name-First: Marco
Author-X-Name-Last: Giansoldati
Title: Import demand in heterogeneous panel data with cross-sectional dependence
Abstract:
We investigate the long-run income and price elasticity of import demand functions with a heterogeneous unbalanced panel of 34 countries over the period 1985:q1-2018:q3. To estimate world elasticities the model is tested with the activity variables derived from the theoretical and empirical literature: GDP, GDP minus exports, Private Demand, Aggregate Domestic Demand, National Cash Flow, and Import intensity-Adjusted Demand (IAD). First, we evaluate time series properties using second generation panel unit root and cointegration tests. Second, we rely on the dynamic common correlated effects mean groups (CCEMG) estimator to deal with cross-sectional dependence (CSD). We find that the IAD, whose world elasticity is close to one, is the best performing specification. Our results confirm that the most appropriate activity variable to assess import demand should encompass intermediate goods as suggested by the recent literature on global supply chains. Moreover, we partially solve the puzzle of the recent trade slowdown since, taking stock of the role of intermediates, the time needed to resort to the long run equilibrium in the aftermath of a global turmoil is greater than that predicted by previous studies.
Journal: Applied Economics
Pages: 443-458
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645944
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645944
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Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:443-458
Template-Type: ReDIF-Article 1.0
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Marinko Skare
Author-X-Name-First: Marinko
Author-X-Name-Last: Skare
Author-Name: Sanja Blazevic Buric
Author-X-Name-First: Sanja Blazevic
Author-X-Name-Last: Buric
Title: Testing Okun’s law. Theoretical and empirical considerations using fractional integration
Abstract:
Full employment remains at the center of any economic policy. Following Okun’s conclusion regarding the trade-off relation between unemployment and real gross national product growth, new studies on different aspects of variable and methodological issues have brought new light to the theory. The purpose of this paper is to investigate the unemployment/GDP relationship, i.e. Okun’s Law, in order to test the basic Okun’s assumption taking into account modern economic circumstances and new methodological specifications. This study analyzes the series for 24 selected countries using fractionally integrated methods. Using these techniques, the results substantially change across countries and also depending on the specification of the error term. Unemployment and output growth rates series show some degree of long memory behavior for most countries while the stability of Okun’s coefficient is also challenged since it changes drastically. Estimated gaps are quite high, not only for −0.30 standard coefficient values but also when compared with other studies’ results. Policy makers can be assisted with these techniques in their efforts to design optimal economic policy to achieve full employment.
Journal: Applied Economics
Pages: 459-474
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646407
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646407
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Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:459-474
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Fink
Author-X-Name-First: Alexander
Author-X-Name-Last: Fink
Title: German income taxation and the timing of marriage
Abstract:
I investigate how the German income tax code affects the timing of marriages. The German income tax code allows married couples to benefit from full income splitting relative to unmarried couples. If their individual incomes differ, legally married couples may benefit from jointly filing their income taxes and thus fully splitting their incomes because of increasing marginal tax rates. The gain from joint taxation for married couples arises every year including the year in which they marry, independent of the month of the marriage. I use data from the German Socio-Economic Panel to test whether couples with larger gains from joint taxation are more likely to marry late in one year instead of early in the subsequent year. The results provide support for the hypothesis that pecuniary gains from joint taxation incentivize couples to prepone their marriages to the last quarter of a year, especially to December.
Journal: Applied Economics
Pages: 475-489
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646873
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646873
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Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:475-489
Template-Type: ReDIF-Article 1.0
Author-Name: Rui Guo
Author-X-Name-First: Rui
Author-X-Name-Last: Guo
Author-Name: Wei Sun
Author-X-Name-First: Wei
Author-X-Name-Last: Sun
Author-Name: Jianqiu Wang
Author-X-Name-First: Jianqiu
Author-X-Name-Last: Wang
Author-Name: Gang Xiao
Author-X-Name-First: Gang
Author-X-Name-Last: Xiao
Title: Why do retired workers claim their social security benefits so early? A potential explanation based on the cumulative prospect theory
Abstract:
Social Security provides longevity insurance for older Americans. According to expected utility theory models, rational households who are not liquidity constrained should delay claiming their Social Security benefits to insure consumption in late life. However, data shows that most retired workers claim soon after becoming eligible. This paper explains the early claiming behaviors using the cumulative prospect theory. We show that when making claiming decisions, individuals consider benefit gains and losses from delaying claiming relative to claiming immediately. Fear of receiving less lifetime benefits in the event of early death induces them to claim immediately.
Journal: Applied Economics
Pages: 490-505
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646874
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646874
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Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:490-505
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa
Author-X-Name-Last: Awaworyi Churchill
Author-Name: Yeti Nisha Madhoo
Author-X-Name-First: Yeti Nisha
Author-X-Name-Last: Madhoo
Author-Name: Shyam Nath
Author-X-Name-First: Shyam
Author-X-Name-Last: Nath
Title: Ethnic diversity and human capital development in India: A disaggregated analysis at the state and district levels
Abstract:
This study contributes to the development literature by providing a new perspective on understanding factors that influence human capital development in India. We examine the effects of ethnic, linguistic and religious diversity on various measures of human capital at the state and district levels. Based on indices of ethnic diversity calculated for 30 Indian States and 557 districts, we examine the direct effects of ethnic diversity on indicators such as infant mortality, education and health. Our findings suggest that, on average, ethnic diversity contributes to some elements of development. Specifically, we find evidence to support development-enhancing effects of diversity on education and health.
Journal: Applied Economics
Pages: 506-518
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646880
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646880
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Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:506-518
Template-Type: ReDIF-Article 1.0
Author-Name: Demetris Christodoulou
Author-X-Name-First: Demetris
Author-X-Name-Last: Christodoulou
Author-Name: Doron Samuell
Author-X-Name-First: Doron
Author-X-Name-Last: Samuell
Title: The adviser effect on insurance disclosures
Abstract:
An examination of personal and medical disclosures made by retail customers to a commercial life insurer reveals that customers screened for insurance with the assistance of a financial adviser considerably under-disclose by comparison to when screened by the insurer. The pattern of under-disclosure is consistent across all areas. We also find that adviser-screened customers are far more likely to be offered standard terms especially for smokers, whereas insurer-screened customers are more likely to be offered modified terms or be declined insurance. We argue that the adviser, who receives a commission when a contract is accepted, may be motivated to influence disclosures in order to increase the chance of an accepted contract in affordable terms and therefore maximize own returns. By doing so, the adviser exposes the customer to legal remedies whereby the insurance company may cancel the contract or refuse a claim. Our results support the findings of various enquiries that call for an end to commission-based sales.
Journal: Applied Economics
Pages: 519-527
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1646883
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1646883
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Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:519-527
Template-Type: ReDIF-Article 1.0
Author-Name: Oğuzhan Çepni
Author-X-Name-First: Oğuzhan
Author-X-Name-Last: Çepni
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: The role of real estate uncertainty in predicting US home sales growth: evidence from a quantiles-based Bayesian model averaging approach
Abstract:
This paper investigates the role of real estate-specific uncertainty in predicting the conditional distribution of US home sales growth over the monthly period of 1970:07 to 2017:12, based on Bayesian Model Averaging (BMA) to account for model uncertainty. After controlling for standard predictors of home sales (housing price, mortgage rate, personal disposable income, unemployment rate, building permits, and housing starts), and macroeconomic and financial uncertainties, our results from the quantile BMA (QBMA) model show that real estate uncertainty has predictive content for the lower and upper quantiles of the conditional distribution of home sales growth.
Journal: Applied Economics
Pages: 528-536
Issue: 5
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1654082
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1654082
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Handle: RePEc:taf:applec:v:52:y:2020:i:5:p:528-536
Template-Type: ReDIF-Article 1.0
Author-Name: Uwe Jirjahn
Author-X-Name-First: Uwe
Author-X-Name-Last: Jirjahn
Title: The adoption and termination of profit sharing for employees: does management’s attitude play a role?
Abstract:
Examinations on the determinants of profit sharing usually focus on objective firm characteristics. Using data from manufacturing firms in Germany, this study shows that managers’ subjective attitudes towards profit sharing also play an important role in the adoption and termination of this payment scheme. Positive management attitudes are associated with an increased likelihood of adopting profit sharing. While to some extent this entails failed experimentation, positive managerial attitudes also substantially contribute to a sustained use of profit sharing. The pattern of results holds even when controlling for a variety of objective firm characteristics.
Journal: Applied Economics
Pages: 108-127
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1311001
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311001
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Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:108-127
Template-Type: ReDIF-Article 1.0
Author-Name: Yau Man Ze-To Samuel
Author-X-Name-First: Yau Man Ze-To
Author-X-Name-Last: Samuel
Title: Option implied beta and option return
Abstract:
We study the information content of option-implied betas for future equity option returns, using data on the S&P 500 index options and all of the component stock options. We find a significantly strong relation between option-implied betas and option returns cross-sectional. The paper presents evidence that call (put) option returns increase (decrease) with the option-implied betas of the underlying stock. A trading strategy of buying high (low) implied beta call (put) option portfolio and selling low (high) implied beta call (put) option portfolio generates a statistically and economically significant return. Our results are robustly persistent even after controlling for various cross-sectional effects and are not explained by the risk factors in asset pricing.
Journal: Applied Economics
Pages: 128-142
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313958
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313958
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Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:128-142
Template-Type: ReDIF-Article 1.0
Author-Name: Thibault Brodaty
Author-X-Name-First: Thibault
Author-X-Name-Last: Brodaty
Title: Is the ladder sticky? Measuring semi-parametrically state dependence in earnings mobility
Abstract:
Employing the U.S. data for the 1990’s, we disentangle state dependence from unobserved heterogeneity in earnings mobility. The fixed effects dynamic multinomial logit utilized to model earnings quintiles dynamics fits the data very well, much more so than the autocorrelated dynamic ordered probit. Unordered models should thus be preferred to study earnings mobility. State dependence is found to be significant. It has a protective (anti-fall) effect at the top of the distribution and a detrimental (anti-rise) effect at the bottom. Consequently, the difficulty of climbing the ladder is not exclusively a question of individual characteristics. Public policies could thus be implemented to improve information about individuals’ ability and job offers, and to design more efficient wage-setting institutions.
Journal: Applied Economics
Pages: 143-156
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1316478
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316478
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Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:143-156
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed M. Elnahas
Author-X-Name-First: Ahmed M.
Author-X-Name-Last: Elnahas
Author-Name: Pankaj K. Jain
Author-X-Name-First: Pankaj K.
Author-X-Name-Last: Jain
Author-Name: Thomas H. McInish
Author-X-Name-First: Thomas H.
Author-X-Name-Last: McInish
Title: Exploring the manipulation toolkit: the failure of Doral Financial Corporation
Abstract:
The 2015 bankruptcy of Doral Financial Corporation, once ‘the best’ U.S. bank according to U.S. Banker, is the largest since April 2010. The bankruptcy concludes years of management manipulation and efforts to recover. SEC investigation revealed fraud related to Doral’s valuation of interest only strips (IOs). We show that Doral management’s misconduct also includes reckless hiring, over investing, insiders trading, and opportunistic stock splits. Investigating the full range of Doral management’s misconduct reveals new tactics that managers use to pool with good firms and aids our understanding of the economic impact of managerial misconduct.
Journal: Applied Economics
Pages: 157-171
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1319563
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319563
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Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:157-171
Template-Type: ReDIF-Article 1.0
Author-Name: Steven P. Clark
Author-X-Name-First: Steven P.
Author-X-Name-Last: Clark
Author-Name: T. Daniel Coggin
Author-X-Name-First: T. Daniel
Author-X-Name-Last: Coggin
Title: A study of fractionally integrated time series using descriptive methods
Abstract:
We demonstrate the use of some descriptive methods for nonstationary time series to better understand the sample path behaviours of fractionally integrated processes for a range of different fractional orders of integration. We are particularly interested in better understanding the behaviours of $$I(d)$$I(d)
series when $$d \in [1/2,1)$$d∈[1/2,1)
. In fact, we will point out that there is considerable disagreement in the literature when it comes to describing such processes, and we show that descriptive methods can be useful tools for better understanding their sample path properties. We also present an empirical example to compare conclusions from some of the descriptive methods and inference from two state-of-the-art estimators for fractional orders of integration.
Journal: Applied Economics
Pages: 172-186
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321839
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321839
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Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:172-186
Template-Type: ReDIF-Article 1.0
Author-Name: Oliviero A. Carboni
Author-X-Name-First: Oliviero A.
Author-X-Name-Last: Carboni
Author-Name: Giuseppe Medda
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Medda
Title: R&D, export and investment decision: evidence from European firms
Abstract:
This article provides an empirical investigation of the mechanism through which R&D influences export and tangible investment decisions. The analysis is based on a large representative and cross-country comparative sample of manufacturing firms across seven European countries. The novelty of this work lies in the three aspects. First, we expand the results on the R&D–export and R&D–investment relationships to a wide sample of cross-European firms. This differentiates from previous works based on single-country samples. Second, to the best of our knowledge, this study is the first in years which assess empirically the relationship between R&D and tangible investment at the micro level. Third, we control for endogeneity of R&D and simultaneity in firms’ decision whether to export and carry out tangible investment. The results of the analysis suggest that R&D positively affects export propensity and tangible investment. The results also reveal that neglecting endogeneity and simultaneity issues leads to underestimate the effect of R&D to both export and investment propensities.
Journal: Applied Economics
Pages: 187-201
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1332747
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332747
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Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:187-201
Template-Type: ReDIF-Article 1.0
Author-Name: Julien Jacqmin
Author-X-Name-First: Julien
Author-X-Name-Last: Jacqmin
Title: The role of market-oriented institutions in the deployment of renewable energies: evidences from Europe
Abstract:
Focusing on European countries, this article investigates the link between market-oriented institutions, as measured by the Economic Freedom Index, and the production of energy from renewable sources. A dynamic panel approach shows that this correlation is positive and significant while the subcomponents of the Economic Freedom Index reveal that not all market-oriented institutions have a similar impact. Indeed, long-term price stability and freedom to trade boost the reliance on renewable energies whereas the importance given to markets rather than governments has no significant impact.
Journal: Applied Economics
Pages: 202-215
Issue: 2
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1332749
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332749
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Handle: RePEc:taf:applec:v:50:y:2018:i:2:p:202-215
Template-Type: ReDIF-Article 1.0
Author-Name: Dina Tasneem
Author-X-Name-First: Dina
Author-X-Name-Last: Tasneem
Author-Name: Jim Engle-Warnick
Author-X-Name-First: Jim
Author-X-Name-Last: Engle-Warnick
Author-Name: Hassan Benchekroun
Author-X-Name-First: Hassan
Author-X-Name-Last: Benchekroun
Title: Sustainable management of renewable resources: an experimental investigation in continuous time
Abstract:
This study addresses one of the most basic questions in renewable resource management: the ability of economic agents to exploit a renewable resource in an efficient and sustainable manner. In a laboratory experiment, subjects are presented with renewable resource extraction problems, where optimal management will lead to a stable steady state. A test of sustainability of the extraction practices shows that extraction behaviour results in steady states only 56% of the time. The mode of the steady state distribution coincides with the optimal steady state extraction. The trade-off between accruing a higher payoff in the present and sustaining the resource for future exploitation leads to suboptimal behaviours such as initial overextraction of the resource compared to the optimal extraction policy, costly downward adjustment of the extraction later in time, and settling down for lower long-run resource and extraction. The suboptimal behaviours lead to 17% loss in efficiency on average in terms of the accumulated payoff. We further look at extraction behaviour in terms of the degree of impatience it projects and find, based on their extraction decisions, that most of our subjects seem more impatient in managing their resource than is justified by the decision-making problem presented to them.
Journal: Applied Economics
Pages: 3804-3833
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584370
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584370
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Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3804-3833
Template-Type: ReDIF-Article 1.0
Author-Name: Noor Ulain Rizvi
Author-X-Name-First: Noor Ulain
Author-X-Name-Last: Rizvi
Author-Name: Smita Kashiramka
Author-X-Name-First: Smita
Author-X-Name-Last: Kashiramka
Author-Name: Shveta Singh
Author-X-Name-First: Shveta
Author-X-Name-Last: Singh
Author-Name: Sushil
Author-X-Name-First:
Author-X-Name-Last: Sushil
Title: A hierarchical model of the determinants of non-performing assets in banks: an ISM and MICMAC approach
Abstract:
The banking systems of emerging economies in general and India in particular are facing sustained impairment due to mounting non-performing assets (NPAs). In the absence of stringent policies and their implementation, the results will be detrimental and may eventually lead to an economic crisis. Thus, it is imperative to unearth the causal factors and mitigate the risks involved with rising NPAs. The study attempts to identify the determinants of NPAs from the existing literature and subsequently, explore the interlinkages between the identified factors. A model of these factors is developed using Interpretive Structural Modeling (ISM) and MICMAC approach. Key managerial insights were obtained by the suggested model, specific to the Indian context. The hierarchical model provides a clearer perspective about the relationship between the factors and suggests that economic conditions and political factors are the key drivers which impact the ownership pattern and adherence to the regulatory framework; these further impact the internal factors related to the banks and borrowers’ capacity to repay. The study will act as a scaffolding for policymakers and bankers. Based on these findings, better instruments and mechanisms for recovery/management of NPAs can be put in place.
Journal: Applied Economics
Pages: 3834-3854
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584377
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584377
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Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3834-3854
Template-Type: ReDIF-Article 1.0
Author-Name: Yimiao Gu
Author-X-Name-First: Yimiao
Author-X-Name-Last: Gu
Author-Name: Zhenxi Chen
Author-X-Name-First: Zhenxi
Author-X-Name-Last: Chen
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Title: Baltic Dry Index and iron ore spot market: dynamics and interactions
Abstract:
Baltic Dry Index (BDI) is often included in the iron ore spot price. Iron ore market experienced a transition in pricing mechanism from the annual negotiated price to the one based on spot market price in 2008/2009. This paper investigates the dynamics of and the interactions between BDI and iron ore spot price in the regime of the new pricing mechanism. In addition to controlled variables, we find significant spillover interactions between BDI and the iron ore market. We also detect mean-reversion movement in the iron ore market, signalling certain inefficiency in the market pricing.
Journal: Applied Economics
Pages: 3855-3863
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584384
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584384
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Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3855-3863
Template-Type: ReDIF-Article 1.0
Author-Name: Lifang Hu
Author-X-Name-First: Lifang
Author-X-Name-Last: Hu
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Author-Name: Yinchu Zeng
Author-X-Name-First: Yinchu
Author-X-Name-Last: Zeng
Title: The impact of credit constraints on the performance of Chinese agricultural wholesalers
Abstract:
This article evaluates the impact of credit constraints on the performance of Chinese agricultural wholesalers. We estimate a stochastic frontier function using transaction and credit data of agricultural wholesalers from across China to estimate the efficiency and productivity impacts of credit constraints on sales of affected agricultural wholesalers. Empirical results show that micro- and smaller wholesalers are disproportionally impacted by credit constraints and that eliminating these constraints would increase the sales of affected agricultural wholesalers by approximately 15%. Thus, policies aimed at providing credit access for these wholesalers would significantly boost the performance of smaller agricultural wholesalers while improving the overall performance of the Chinese food supply chain without requiring additional non-credit inputs.
Journal: Applied Economics
Pages: 3864-3875
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584385
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584385
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Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3864-3875
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Bunduchi
Author-X-Name-First: Elena
Author-X-Name-Last: Bunduchi
Author-Name: Valentina Vasile
Author-X-Name-First: Valentina
Author-X-Name-Last: Vasile
Author-Name: Calin-Adrian Comes
Author-X-Name-First: Calin-Adrian
Author-X-Name-Last: Comes
Author-Name: Daniel Stefan
Author-X-Name-First: Daniel
Author-X-Name-Last: Stefan
Title: Macroeconomic determinants of remittances: evidence from Romania
Abstract:
Given the globalization of the labour market and the promotion of free movement for work, young people are looking for employment opportunities from at least two perspectives – professional careers and socio-economic benefits from employment. In developing countries, such as Romania, the labour market is less attractive, which has led to profound, numerical and structural imbalances, due to external mobility for work. Both new generations of graduates and young people aged up to 40 years, decide to work abroad as a more beneficial individual solution, i.e. remittances. The purpose of this paper is to examine the macroeconomic determinants of remittances to Romania, in order to substantiate public policies on diaspora, to adjust employment policy on the national labour market by promoting incentives to create decent, youth-friendly jobs. Using panel data model we selected several variables with potential influence on remittances level. The results demonstrate that traditional influence’s factors as distance, migration routes diaspora concentration or unemployment rate are, at present, less important than wage gap or tax rate at least for developing origin countries.
Journal: Applied Economics
Pages: 3876-3889
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584386
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584386
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Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3876-3889
Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Yu Li
Author-X-Name-First: Chen-Yu
Author-X-Name-Last: Li
Author-Name: An-Chi Lai
Author-X-Name-First: An-Chi
Author-X-Name-Last: Lai
Author-Name: Zhan-Ao Wang
Author-X-Name-First: Zhan-Ao
Author-X-Name-Last: Wang
Author-Name: Yi-Chung Hsu
Author-X-Name-First: Yi-Chung
Author-X-Name-Last: Hsu
Title: The preliminary effectiveness of bilateral trade in China’s belt and road initiatives: a structural break approach
Abstract:
This study aims to investigate the initial effectiveness of the international trade in the Belt and Road Initiatives (BRI), which encompasses 64 countries along the Belt and Road as part of China’s political and economic network for the years beginning with 2013. To determine the initial effectiveness in the international trade associated with the BRI, we adopt the traditional augmented Dickey-Fuller (ADF) test and the one-time structural breakpoint in the bilateral trade data between China and these 64 countries along the Belt and Road from 2010 to 2017. The results show that, for 46 (72%) countries, the trade flows with unit roots and the shocks of trade flows appear to occur more frequently following the announcements of the initiatives among these countries. As for the remaining countries, the trade flows exhibit stationary time series over the 2010–2017 period. Both the 21st century maritime silk road and the silk road economic belt initiatives have affected the bilateral trade volumes of these countries along with the belt and road initiatives, and bilateral commerce mechanisms are able to serve as a stabilizing force in accelerating the economic integration of countries along the route.
Journal: Applied Economics
Pages: 3890-3905
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584387
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584387
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Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3890-3905
Template-Type: ReDIF-Article 1.0
Author-Name: Haitao Zheng
Author-X-Name-First: Haitao
Author-X-Name-Last: Zheng
Author-Name: Jie Hu
Author-X-Name-First: Jie
Author-X-Name-Last: Hu
Author-Name: Shanshan Wang
Author-X-Name-First: Shanshan
Author-X-Name-Last: Wang
Author-Name: Huiwen Wang
Author-X-Name-First: Huiwen
Author-X-Name-Last: Wang
Title: Examining the influencing factors of CO2 emissions at city level via panel quantile regression: evidence from 102 Chinese cities
Abstract:
Ascertaining the influencing factors of carbon dioxide emissions in Chinese cities is an important issue for policy-makers. This paper investigates the effect of several determinants on carbon emissions per capita in Chinese cities. Non-normally distributed and heterogeneous features of carbon emissions per capita in Chinese cities are considerably important. The empirical results demonstrate that GDP per capita has an increasingly positive impact on carbon emissions per capita due to the growth in household consumption. Urbanization has a slightly decreasing positive effect on carbon emissions per capita with a quantile increase resulting from continuous highway construction. Industrialization has a decreasing positive effect with carbon emission per capita quantile increases because of increasing energy efficiency and lower costs related to carbon reductions. The population has a decreasing negative effect on carbon emissions because of people’s increasing demand for environmental safety. The distributions of emissions per capita conditional on the 10th and 90th quantiles of independent variables also vary considerably. Specific policy implications are provided based on these results.
Journal: Applied Economics
Pages: 3906-3919
Issue: 35
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584659
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584659
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Handle: RePEc:taf:applec:v:51:y:2019:i:35:p:3906-3919
Template-Type: ReDIF-Article 1.0
Author-Name: Katharina Dengler
Author-X-Name-First: Katharina
Author-X-Name-Last: Dengler
Title: Effectiveness of sequences of classroom training for welfare recipients: what works best in West Germany?
Abstract:
Sequences of active labour market programmes (ALMPs) may be part of an intensified activation strategy targeting hard-to-place unemployed individuals. Such sequences are very common among welfare recipients in Germany, but most studies only evaluate either single ALMPs or unemployed individuals’ first ALMP. I analyse the effects of different sequences of classroom training for West German men and women on different labour market outcomes. Using rich administrative data and a dynamic causal model, I can control for dynamic selection problems that occur during a sequence. The results show that two classroom trainings are more effective than two periods of welfare receipt in helping welfare recipients find regular employment, especially among West German women. Moreover, immediately assigning individuals to classroom training is more effective than waiting and assigning them to classroom training in the second period. However, in some cases, avoiding participation in multiple programmes is preferable.Abbreviations: ALMP, active labour market programme; CIA, Conditional Independence Assumption; CSR, Common Support Requirement; DATET, dynamic average treatment effect on the treated; IEB, Integrated Employment Biographies; IPW, inverse probability weighting; LHG, UBII-Receipt History (Leistungshistorik Grundsicherung); MSB, mean standardized absolute bias; SUTVA, Stable Unit Treatment Value Assumption; UBII, unemployment benefit II; UBI, unemployment benefit I; WDCIA, Weak Dynamic Conditional Independence Assumption
Journal: Applied Economics
Pages: 1-46
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1489110
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489110
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Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:1-46
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Alessandra Antonelli
Author-X-Name-First: Maria Alessandra
Author-X-Name-Last: Antonelli
Author-Name: Valeria De Bonis
Author-X-Name-First: Valeria
Author-X-Name-Last: De Bonis
Title: The efficiency of social public expenditure in European countries: a two-stage analysis
Abstract:
Do European countries differ in the efficiency of their welfare policies? And which factors can account for such variability? To address these questions, we perform a two-stage efficiency analysis. First, based on a composite output indicator for social protection expenditure, we measure efficiency by means of the Free Disposable Hull and Data Envelopment Analysis techniques. Second, we perform an econometric analysis to identify the factors that can be associated to cross-country differences. We find that countries scoring higher efficiency have higher education and GDP levels, a smaller population size, a lower degree of selectivity of their welfare systems and a lower corruption level.
Journal: Applied Economics
Pages: 47-60
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1489522
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489522
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Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:47-60
Template-Type: ReDIF-Article 1.0
Author-Name: Asresu Yitayew
Author-X-Name-First: Asresu
Author-X-Name-Last: Yitayew
Author-Name: Yigezu A. Yigezu
Author-X-Name-First: Yigezu A.
Author-X-Name-Last: Yigezu
Author-Name: Girma T. Kassie
Author-X-Name-First: Girma T.
Author-X-Name-Last: Kassie
Author-Name: Tilaye T. Deneke
Author-X-Name-First: Tilaye T.
Author-X-Name-Last: Deneke
Author-Name: Aynalem Haile
Author-X-Name-First: Aynalem
Author-X-Name-Last: Haile
Author-Name: Halima Hassen
Author-X-Name-First: Halima
Author-X-Name-Last: Hassen
Author-Name: Barbara Rischkowsky
Author-X-Name-First: Barbara
Author-X-Name-Last: Rischkowsky
Title: Identification of strategies to improve goat marketing in the lowlands of Ethiopia: a hedonic price analysis
Abstract:
This article aims at identifying factors that determine market prices of goats and analyse potential mechanisms by which smallholder goat producers could maximize their benefits. Data on 357 farm households and 2103 goat transactions were collected in three major goat markets in the lowlands of Ethiopia. Hedonic price models adjusted for heteroscedasticity were employed to analyse the observed price data. Model results showed the relative importance of different factors in determining goat prices. Animal attributes including age, sex, live weight, body condition and presence of horn as well as types of buyer and market outlet targeted and time of selling were found to be important. Particularly, goats marketed during festive periods where demand for meat increases (e.g. Ethiopian New Year) command higher prices. These results imply that interventions such as systematic selection schemes targeting traits demanded by the market, improved linkages to markets, easy access to market information systems and creating conducive environment including incentive mechanisms can enhance smallholder farmers’ and pastoralists’ ability to take advantage of seasonal and spatial price changes and become market responsive with effective marketing strategies. Such changes can be potent in improving the livelihoods of smallholder farmers and pastoralists.
Journal: Applied Economics
Pages: 61-75
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1490693
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490693
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Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:61-75
Template-Type: ReDIF-Article 1.0
Author-Name: António S. Ribeiro
Author-X-Name-First: António S.
Author-X-Name-Last: Ribeiro
Author-Name: Francisco Lima
Author-X-Name-First: Francisco
Author-X-Name-Last: Lima
Title: Football players’ career and wage profiles
Abstract:
The objective of this article is to look over football players’ career path, from lower leagues to the first league, and the associated wage profile. The information comes from a Portuguese longitudinal matched employer–employee data set defining several career events according to players’ movement across football clubs and across professional and semi-professional leagues. Our identifying strategy relies on coach changes to reduce the potential bias resulting from players’ moves between clubs. The estimated first-difference wage equations indicate that players can expect a wage premium when they get transferred to new clubs in higher leagues or a wage penalty when moving to lower leagues. Players who stay in the same club after the club being relegated can also expect a wage penalty.
Journal: Applied Economics
Pages: 76-87
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494375
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494375
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Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:76-87
Template-Type: ReDIF-Article 1.0
Author-Name: Feriha Ibriyamova
Author-X-Name-First: Feriha
Author-X-Name-Last: Ibriyamova
Author-Name: Samuel Kogan
Author-X-Name-First: Samuel
Author-X-Name-Last: Kogan
Author-Name: Galla Salganik-Shoshan
Author-X-Name-First: Galla
Author-X-Name-Last: Salganik-Shoshan
Author-Name: David Stolin
Author-X-Name-First: David
Author-X-Name-Last: Stolin
Title: Predicting stock return correlations with brief company descriptions
Abstract:
A series of influential papers by Hoberg and Phillips measure the similarity of pairs of companies based on a textual analysis of their business descriptions and show these measures to be useful in a variety of research contexts in finance. Hoberg and Phillips derive the similarity measures from a comparison of word lists extracted from extensive business descriptions contained in US companies’ electronic 10-K filings. Unfortunately, this method is of little use in non-US settings, where lengthy English-language company self-descriptions are not available on a consistent basis. Instead, we use semantic fingerprinting to extract such similarity measures from much shorter but globally available third-party company descriptions. We show that our approach significantly predicts stock return correlations even after controlling for past correlations and for membership in the same industry. Remarkably, company similarity measures based on brief third-party company descriptions predict stock return correlations significantly better than those based on much longer company self-descriptions.
Journal: Applied Economics
Pages: 88-102
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494377
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494377
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Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:88-102
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Schleich
Author-X-Name-First: Joachim
Author-X-Name-Last: Schleich
Author-Name: Corinne Faure
Author-X-Name-First: Corinne
Author-X-Name-Last: Faure
Author-Name: Xavier Gassmann
Author-X-Name-First: Xavier
Author-X-Name-Last: Gassmann
Title: Household internal and external electricity contract switching in EU countries
Abstract:
Using a representative sample of more than 13,000 households from eight countries in the European Union (EU), this article empirically studies the factors related to household electricity contract switching by distinguishing between internal switchers (households that switched contracts but stayed with the same supplier) from external switchers (households that switched to a new supplier). The econometric analysis includes individual preferences, household structural factors and socio-demographic characteristics, as well as electricity market characteristics. The study explicitly explores the role of risk and time preferences on switching behaviours, with risk and time preferences elicited through incentivized experiments as well as self-assessment scales. The main results suggest that internal and external switching are not related to the same factors, that risk and time preferences affect switching behaviours, and that renters are less likely to switch than homeowners; further, electricity market characteristics are found to affect household electricity contract switching.
Journal: Applied Economics
Pages: 103-116
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494379
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494379
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Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:103-116
Template-Type: ReDIF-Article 1.0
Author-Name: Vera Gurtovaya
Author-X-Name-First: Vera
Author-X-Name-Last: Gurtovaya
Author-Name: Sergio Nisticò
Author-X-Name-First: Sergio
Author-X-Name-Last: Nisticò
Title: Does the NDC scheme mimic the French point system?
Abstract:
After the implementation of the notional defined contribution (NDC) pension scheme in Italy and Sweden in the ‘90s, some authors argued that its design merely replicates the functioning of the points-based pension schemes already in place in France and Germany. The aim of this article is to assess the soundness of this proposition by comparing the properties of the French points-based pension system (FPS) with those of the NDC scheme, which refrains from intra-cohort redistributions by ensuring substantial uniformity of individual rates of return. In order to assess to what extent the FPS also avoids intra-cohort redistributions, we run several simulations for different career patterns. The results of the simulations show that the discretionary adjustments embedded in the FPS are responsible for random, regressive redistributions. Finally, the article identifies the theoretical ‘equivalence condition’ showing that full correspondence between the two schemes would require replacing the discretionary mechanisms of the FPS with an automatic adjustment of point values.
Journal: Applied Economics
Pages: 117-130
Issue: 1
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494805
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494805
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Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:117-130
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Title: Geographical dispersion of consumer search behaviour
Abstract:
This article investigates whether consumer search behaviour differs across zip codes within the U.S. As an application, daily gasoline price data covering virtually all gas stations within the U.S. are employed to estimate the distribution of search costs in each zip code. The results show that there are significant differences across zip codes regarding the expected number of searches achieved before consumers purchase gasoline. In order to have a systematic explanation, such differences are further connected to geographic, demographic, and economic conditions of the zip codes in a secondary analysis. The corresponding results imply several strategies for gas stations in order to maximize profits/markups; suggestions follow for policy makers and regulators to reduce redistributive effects of information barriers across locations.
Journal: Applied Economics
Pages: 5740-5752
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340575
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340575
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Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5740-5752
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Wagner
Author-X-Name-First: Joachim
Author-X-Name-Last: Wagner
Title: Intra-good trade in Germany: a first look at the evidence
Abstract:
This article contributes to the literature by using newly released comprehensive transaction-level data on all exports and imports to document facts about the amount of intra-good trade – the simultaneous export and import of identical goods by one firm – in Germany. Combined data for trade transactions and for characteristics of a representative large sample of trading firms are then used to report differences between firms that export and import different goods only (inter-good traders) and firms that engage in the simultaneous export and import of identical goods (intra-good traders). We find that the share of intra-good trade in total trade was some 17% in Germany in 2012. Intra-good trade matters. This share differs widely between broadly defined groups of goods and between industries. Controlling for detailed industry affiliation, intra-good traders differ significantly from inter-good traders – they are larger, more human capital intensive, more productive, have a higher R&D intensity and are more profitable. The data, however, are not rich enough to reveal the direction of causality between intra-good trade and firm performance and to investigate empirically the reasons why some firms engage in intra-good trade.
Journal: Applied Economics
Pages: 5753-5761
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340576
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340576
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Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5753-5761
Template-Type: ReDIF-Article 1.0
Author-Name: Machiel van Dijk
Author-X-Name-First: Machiel
Author-X-Name-Last: van Dijk
Title: Estimating the weight of opportunity costs in housing consumption
Abstract:
Behavioural economics suggests that people tend to neglect or underweight opportunity costs. However, strong empirical evidence for the size of the underweighting appears to be largely absent from the literature. What are the weights people attach to opportunity costs relative to out-of-pocket costs? In this article, I estimate the weight of opportunity costs in probably the largest economic decision that households make: buying a house. I show that homeowners attach approximately twice as much weight to out-of-pocket costs of their housing consumption than to the opportunity costs associated with this.
Journal: Applied Economics
Pages: 5762-5770
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340579
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340579
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Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5762-5770
Template-Type: ReDIF-Article 1.0
Author-Name: Tatsuyoshi Miyakoshi
Author-X-Name-First: Tatsuyoshi
Author-X-Name-Last: Miyakoshi
Author-Name: Laixun Zhao
Author-X-Name-First: Laixun
Author-X-Name-Last: Zhao
Title: Multinational public goods provision under multilateral income transfers and productivity differences
Abstract:
This article examines multinational public goods provision under multilateral income transfers and productivity differences across countries. Under a planner who uses linear approximation for utility maximization, we show that (1) a country is an income receiver if it has a higher productivity than the average in producing public goods, enabling it to provide more public goods; (2) the amount of transfers can be pinned down for all countries with an adjustment cost; (3) each country obtains an identical utility increment; and (4) the country with the lowest adjustment cost is the best candidate for the planner country. All results are derived based on well-known information regarding the cost of producing the public goods and income levels.
Journal: Applied Economics
Pages: 5771-5779
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340580
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340580
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Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5771-5779
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Acosta-Ballesteros
Author-X-Name-First: Juan
Author-X-Name-Last: Acosta-Ballesteros
Author-Name: M. Pilar Osorno-Del Rosal
Author-X-Name-First: M. Pilar
Author-X-Name-Last: Osorno-Del Rosal
Author-Name: Olga María Rodríguez-Rodríguez
Author-X-Name-First: Olga María
Author-X-Name-Last: Rodríguez-Rodríguez
Title: Gender differences in the quality of the school-to-work transition in Spain
Abstract:
This article analyses to what extent gender affects the quality of the school-to-work transition in Spain, paying special attention to workers’ educational attainment. We estimate a four-equation system that explains the main obstacles young people face in their insertion process: part-time work, overeducation, fixed-term contracts and long unemployment spells; the model also considers the impact of the latter variable on the other three. Moreover, a synthetic indicator of transition quality based on the estimation of this model is developed. We conclude that men experience a better insertion process than women at every level of education (except for higher vocational training), although the gender gap is greater for long-cycle university programmes. Furthermore, when field of study is considered, men from most specializations enjoy a smoother transition than their female counterparts; nevertheless, women have the advantage in some female-dominated fields. A further analysis of gender differences reveals that they are due to the fact of being male or female to a great extent. The results also highlight that school-leavers from work-oriented programmes and those specialized in fields that provide them with more specific skills are more likely to succeed in the transition.
Journal: Applied Economics
Pages: 5780-5791
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343445
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343445
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Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5780-5791
Template-Type: ReDIF-Article 1.0
Author-Name: Helga Kristjánsdóttir
Author-X-Name-First: Helga
Author-X-Name-Last: Kristjánsdóttir
Author-Name: Þórhallur Örn Guðlaugsson
Author-X-Name-First: Þórhallur Örn
Author-X-Name-Last: Guðlaugsson
Author-Name: Svala Guðmundsdóttir
Author-X-Name-First: Svala
Author-X-Name-Last: Guðmundsdóttir
Author-Name: Gylfi Dalmann Aðalsteinsson
Author-X-Name-First: Gylfi Dalmann
Author-X-Name-Last: Aðalsteinsson
Title: Hofstede national culture and international trade
Abstract:
The objective is to analyse if international trade is affected by different national cultures. International trade of 21 World Bank listed countries is estimated as function of the Hofstede cultural dimensions, gross domestic product and population. First, we estimate the combined Hofstede culture dimensions and find significant positive effects on countries’ international trade. Secondly, we decompose the Hofstede culture dimensions and estimate the effects of each separate dimension on international trade, finding only the MAS dimension to significantly affect international trade. We estimate additional equation versions to account for occasional trade restrictions with no international trade, as well as estimating how international trade varies between years. These additional estimations further support our original findings, and therefore act as robustness check.
Journal: Applied Economics
Pages: 5792-5801
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343446
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343446
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Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5792-5801
Template-Type: ReDIF-Article 1.0
Author-Name: Grazia Cecere
Author-X-Name-First: Grazia
Author-X-Name-Last: Cecere
Author-Name: Fabrice Le Guel
Author-X-Name-First: Fabrice
Author-X-Name-Last: Le Guel
Author-Name: Fabrice Rochelandet
Author-X-Name-First: Fabrice
Author-X-Name-Last: Rochelandet
Title: Crowdfunding and social influence: an empirical investigation
Abstract:
The literature so far provides no in-depth investigation of the determinants of decisions to contribute to crowdfunding platforms. The present article draws on work measuring the decisions and prosocial behaviours of individuals in relation to public goods, and uses survey data on crowdfunding behaviour. We surveyed an original sample of individuals in France to explore individual decisions and amounts of funding chosen to support a creative project. We show that in non-equity crowdfunding contributing money is associated with altruism. Our findings suggest that the ‘warm glow’ effect influences the level of the contribution; we show also those monetary incentives could ‘crowd out’ the decisions to contribute of crowdfunders. Our study has some implications for business strategy since understanding why people contribute adds to our knowledge about the incentives that might encourage them to increase their contributions, and allows predictions about how changes to how crowdfunding platforms are managed might affect individual incentives to give.
Journal: Applied Economics
Pages: 5802-5813
Issue: 57
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343450
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343450
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Handle: RePEc:taf:applec:v:49:y:2017:i:57:p:5802-5813
Template-Type: ReDIF-Article 1.0
Author-Name: Ergun Dogan
Author-X-Name-First: Ergun
Author-X-Name-Last: Dogan
Author-Name: M. Qamarul Islam
Author-X-Name-First: M. Qamarul
Author-X-Name-Last: Islam
Author-Name: Mehmet Yazici
Author-X-Name-First: Mehmet
Author-X-Name-Last: Yazici
Title: Real exchange rates and job flows: evidence from Turkey
Abstract:
This study investigates the effects of the real exchange rate on job flows in Turkish manufacturing industries between 2006 and 2015 using data at the four-digit NACE Revision 2 level. Using dynamic panel data models, we find that a real appreciation increases gross and net job creation rates, and that the effect of appreciation is magnified as the exposure to international competitiveness of industries increases. We think that this is because Turkish manufacturing firms import a greater share of their inputs compared to the firms in developed countries. Hence, an appreciation creates more jobs because lower imported input costs enable firms to outcompete foreign producers.
Journal: Applied Economics
Pages: 4489-4499
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458190
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458190
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Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4489-4499
Template-Type: ReDIF-Article 1.0
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Author-Name: Román Ferrer
Author-X-Name-First: Román
Author-X-Name-Last: Ferrer
Author-Name: Francisco Jareño
Author-X-Name-First: Francisco
Author-X-Name-Last: Jareño
Title: Does Shariah compliance make interest rate sensitivity of Islamic equities lower? An industry level analysis under different market states
Abstract:
This paper examines the sensitivity of the Dow Jones Islamic market index and its corresponding industry equity indices to changes in the level, slope and curvature of the U.S. term structure of interest rates over the period 1996–2015 using the quantile regression approach. The empirical results reveal that the Islamic stock market has a considerable negative exposure to interest rate risk, although a declining time pattern of interest rate sensitivity is observed. The unexpected changes in the level factor of the U.S. yield curve, closely linked to long-term interest rates, are identified as the most important interest rate factor in explaining the variability of Islamic equity returns. Furthermore, the interest rate exposure tends to be stronger during extreme bearish conditions in the stock market, possibly due to the greater pessimism and risk aversion under these market circumstances. It is also shown that Islamic equities are not different from their mainstream counterparts in terms of interest rate sensitivity, indicating that the Islamic stock market does not provide a cushion against interest rate risk.
Journal: Applied Economics
Pages: 4500-4521
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458191
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458191
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Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4500-4521
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroyuki Aman
Author-X-Name-First: Hiroyuki
Author-X-Name-Last: Aman
Author-Name: Norihiro Kasuga
Author-X-Name-First: Norihiro
Author-X-Name-Last: Kasuga
Author-Name: Hiroshi Moriyasu
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Moriyasu
Title: Mass media effects on trading activities: television broadcasting evidence from Japan
Abstract:
This study examines how information broadcasting through television (TV) media influences stock market activities. Consistent with the effect of TV information to attract investor attention, we find that increased information flow through TV is significantly associated with greater trading volume and larger price change. For information type, hard news from business-oriented programmes and earnings-related news strongly contributes to the attention effect, while the effect of soft news is weaker. Bid–ask spread widens for more TV information flows, suggesting that new information arrival in the market expands information asymmetry. Finally, the impact of TV is more influential for stocks with more individual shareholders than those with institutional shareholders.
Journal: Applied Economics
Pages: 4522-4539
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458192
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458192
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Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4522-4539
Template-Type: ReDIF-Article 1.0
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Author-Name: María del Carmen Ramos-Herrera
Author-X-Name-First: María del Carmen
Author-X-Name-Last: Ramos-Herrera
Title: Inflation, real economic growth and unemployment expectations: an empirical analysis based on the ECB survey of professional forecasters
Abstract:
Expectations are at the centre of modern macroeconomic theory and policymakers. In this article, we examine the predictive ability and the consistency properties of macroeconomic expectations using data of the European Central Bank (ECB) Survey of Professional Forecasters (SPF). In particular, we provide evidence on the properties of forecasts for three key macroeconomic variables: the inflation rate, the growth rate of real gross domestic product and the unemployment rate.
Journal: Applied Economics
Pages: 4540-4555
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458193
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458193
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Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4540-4555
Template-Type: ReDIF-Article 1.0
Author-Name: Sangkon Park
Author-X-Name-First: Sangkon
Author-X-Name-Last: Park
Author-Name: Cheolsung Park
Author-X-Name-First: Cheolsung
Author-X-Name-Last: Park
Author-Name: Changhui Kang
Author-X-Name-First: Changhui
Author-X-Name-Last: Kang
Title: Effects of a holiday trip on health and quality of life: evidence from a natural experiment in South Korea
Abstract:
We examine whether having a holiday trip affects an individual’s well-being, namely quality of life, health status, stress level and health behaviours. We use the two-stage estimation method to control for endogeneity of a travel experience, exploiting a natural experiment of distributing Travel Vouchers at random among qualified applicants in South Korea in 2012. We find that, for applicants whose decision to travel is influenced by receiving a voucher, a travel experience has no significant effects on the traveller’s well-being measured 3–12 months later. We also find that the OLS estimates overstate benefits of a travel.
Journal: Applied Economics
Pages: 4556-4569
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458194
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458194
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Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4556-4569
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyong Dai
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Dai
Author-Name: Liwei Cheng
Author-X-Name-First: Liwei
Author-X-Name-Last: Cheng
Title: The impact of product innovation on firm-level markup and productivity: evidence from China
Abstract:
This article empirically evaluates the impact of product innovation on firms’ markup and productivity. Based on a large sample of Chinese manufacturing firms, we estimate firm-level markup using the wedge between output elasticities of intermediate input and its cost share in total revenue. Firm productivity is measured as revenue productivity and adjusted with the estimated markup. The results suggest that product innovation increases firm-level markup and revenue productivity. However, the effect of product innovation on the adjusted productivity is mostly negative or insignificant. The observed relationships also vary in response to market structures. Our results indicate that the positive impact of product innovation on revenue productivity is mainly driven by price-cost markup changes rather than physical productivity improvements. Our study suggests the widely observed positive relationship between product innovation and revenue productivity should be interpreted with caution.
Journal: Applied Economics
Pages: 4570-4581
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458195
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458195
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Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4570-4581
Template-Type: ReDIF-Article 1.0
Author-Name: Jana Hilsenroth
Author-X-Name-First: Jana
Author-X-Name-Last: Hilsenroth
Author-Name: Sherry L. Larkin
Author-X-Name-First: Sherry L.
Author-X-Name-Last: Larkin
Author-Name: Thomas K. Frazer
Author-X-Name-First: Thomas K.
Author-X-Name-Last: Frazer
Title: The price of pretty: characteristics of black Tahitian pearls and their implicit values
Abstract:
French Polynesia’s economy is largely dependent on the black pearl industry and associated export revenues. Accordingly, there is a need to understand fully the factors that influence quality and price of pearls – and threats to future sustainability. Focus, thus far, has been on production practices that affect pearl characteristics and quality. Although there is a generally accepted hierarchy in the characteristics of black pearls that determine quality and price, the contributory value of specific characteristics and their interdependence has not been assessed. We used information from two retailers that supply distinct markets to estimate the implicit value of black pearl characteristics, i.e. grade, shape and size. Calculated premiums and discounts revealed key similarities between retailers including that a more preferred shape demanded larger premiums than an improved grade. Results of this analysis will help direct research aimed at modifying production methods to increase the yield of higher value pearls. This is especially important given that climate change will, in fact, affect many environmental parameters that influence pearl quality. If ignored, such changes have the potential to negatively impact the quality of produced pearls with profound socio-economic consequences.
Journal: Applied Economics
Pages: 4582-4591
Issue: 42
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458196
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458196
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Handle: RePEc:taf:applec:v:50:y:2018:i:42:p:4582-4591
Template-Type: ReDIF-Article 1.0
Author-Name: Theodoros V. Stamatopoulos
Author-X-Name-First: Theodoros V.
Author-X-Name-Last: Stamatopoulos
Author-Name: Stavros E. Arvanitis
Author-X-Name-First: Stavros E.
Author-X-Name-Last: Arvanitis
Author-Name: Dimitris M. Terzakis
Author-X-Name-First: Dimitris M.
Author-X-Name-Last: Terzakis
Title: The risk of the sovereign debt default: the Eurozone crisis 2008–2013
Abstract:
We investigate the relationship of the market pricing of sovereign risk to default, through credit default swap (CDS) spreads for 16 Eurozone countries during 2008q1–2013q3. We take into account, through appropriate non-linear generalized method of moments (GMM) estimations the endogeneity problem. We focus on ‘fiscal space’ (DEBT or FISCAL), and the downgrade announcements (DOWN). We find DEBT (FISCAL) to have significant (insignificant) effects on the CDS concave function, as well as, DOWN in a linear one. It has also been confirmed significant pricing discrimination between South and West Euro Area Periphery (SWEAP) and the core Eurozone, highlighting asymmetries discovered either by the respective size of estimated DEBT coefficients or by the significant effects of DOWN that have only on CDS of SWEAP countries. The current account balance or the inflation rate, as well as, relevant interaction terms seem not to affect the spreads of the EMU. These findings, together with the estimated structural change on CDS pattern in early 2011, coinciding with significant either the DOWN in the pre-crisis period (2008–2010) or the DEBT in the post-crisis one (2011–2013) on the CDS, seem to be consistent with self-fulfilling crises literature and the inherent vulnerability of EMU, on other words, the ‘fragility hypothesis of the Eurozone’.
Journal: Applied Economics
Pages: 3782-3796
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267851
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267851
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Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3782-3796
Template-Type: ReDIF-Article 1.0
Author-Name: H. Youn Kim
Author-X-Name-First: H. Youn
Author-X-Name-Last: Kim
Author-Name: Junsoo Lee
Author-X-Name-First: Junsoo
Author-X-Name-Last: Lee
Title: Intertemporal production and intertemporal substitution in output supply and input demand
Abstract:
This article presents an intertemporal model of production with multiple inputs to investigate substitution opportunities facing firms over time. The firm’s intertemporal profit maximization problem is characterized with the familiar cost function, and various intertemporal substitution elasticities are delineated for output supply and input demand. The absence of intertemporal substitution in production can imply production smoothing, and allowance for intertemporal substitution in labour demand reinforces the prediction of the real business cycle model. For aggregate US manufacturing, we find substantial substitution in output supply and labour demand over time due to intertemporal changes in output price and wage rates.
Journal: Applied Economics
Pages: 3797-3814
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267852
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267852
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Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3797-3814
Template-Type: ReDIF-Article 1.0
Author-Name: Shujin Zhu
Author-X-Name-First: Shujin
Author-X-Name-Last: Zhu
Author-Name: Renyu Li
Author-X-Name-First: Renyu
Author-X-Name-Last: Li
Title: Economic complexity, human capital and economic growth: empirical research based on cross-country panel data
Abstract:
Economic complexity reflects a country’s production capabilities and plays an important role in economic growth. This article measures the economic complexity of 210 countries using the method of reflections, and investigates the impact of economic complexity and human capital on economic growth. The measurement results show that there are significant differences regarding the level of complexity among countries. High-income economies have higher complexity than low- and middle-income economies. The empirical findings demonstrate that economic complexity and different levels of human capital have positive effects on long- and short-term growth. A positive interaction effect on economic growth exists between economic complexity and human capital. In addition, secondary education as a proxy for human capital has a relatively greater positive direct effect and a much stronger interactive effect with complexity on economic growth. In addition, the magnitude of the interaction effect between economic complexity and human capital on long- and short-term growth increases as the revealed comparative advantage threshold grows.
Journal: Applied Economics
Pages: 3815-3828
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270413
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270413
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Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3815-3828
Template-Type: ReDIF-Article 1.0
Author-Name: Takehiro Usui
Author-X-Name-First: Takehiro
Author-X-Name-Last: Usui
Author-Name: Mitsuko Chikasada
Author-X-Name-First: Mitsuko
Author-X-Name-Last: Chikasada
Author-Name: Kazuhiko Kakamu
Author-X-Name-First: Kazuhiko
Author-X-Name-Last: Kakamu
Title: Does garbage pricing increase the immoral disposal of household waste?
Abstract:
Some empirical studies have attempted to clarify the mechanism of illegal dumping by examining the degree to which per-bag pricing plays a role. However, previous research on the behaviour of avoiding paying a charge for waste collection has tended to neglect so-called ‘immoral disposal,’ which is less risky than illegal dumping because there is no legal penalty. In this study, we define immoral disposal as the dumping of waste in a manner that is immoral but not illegal. To detect the existence of immoral disposal, we apply a spatial econometric approach, namely an extended panel spatial Durbin model, to identify the actual spillover effect of garbage pricing in neighbouring municipalities on immoral disposal from the total waste. A major finding of this study is that immoral disposal exists in unit-based pricing, two-tiered pricing, and fixed pricing.
Journal: Applied Economics
Pages: 3829-3840
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270414
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270414
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Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3829-3840
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Vosseler
Author-X-Name-First: Alexander
Author-X-Name-Last: Vosseler
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Bayesian analysis of periodic unit roots in the presence of a break
Abstract:
A Bayesian testing approach for a periodic unit root in quarterly and monthly data is presented. Further a Bayesian test is introduced to test for unit roots at (non)seasonal spectral frequencies. All procedures admit one structural break in the periodic trend function, where the occurrence of a break and the associated timing are treated as additional model parameters. A Bayesian model averaging (BMA) approach is proposed and power functions of the tests are computed. Overall the results indicate that the BMA periodic unit root test exhibits favourable test properties even in small samples. In an empirical application the presented testing procedures are used to test for (non)seasonal forms of unemployment persistence among OECD countries.
Journal: Applied Economics
Pages: 3841-3862
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270415
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270415
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Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3841-3862
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Fernandez-Perez
Author-X-Name-First: Adrian
Author-X-Name-Last: Fernandez-Perez
Author-Name: Bart Frijns
Author-X-Name-First: Bart
Author-X-Name-Last: Frijns
Author-Name: Alireza Tourani-Rad
Author-X-Name-First: Alireza
Author-X-Name-Last: Tourani-Rad
Title: Precious metals, oil and the exchange rate: contemporaneous spillovers
Abstract:
We investigate the contemporaneous spillovers among precious metals, crude oil and the US$ exchange rate. We contend that conventional reduced-form vector autoregressive (VAR) models based on lead/lag relations do not fully capture the interactions among these series as these models ignore the contemporaneous effects. Using a Structural VAR model, we identify these contemporaneous spillovers, which are shown to be strong and asymmetric. We further show that not taking into consideration the contemporaneous interactions among these assets leads to inaccurate findings and inevitably to inaccurate interpretations of the causal relations among them.
Journal: Applied Economics
Pages: 3863-3879
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270416
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270416
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Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3863-3879
Template-Type: ReDIF-Article 1.0
Author-Name: Ashwin Madhou
Author-X-Name-First: Ashwin
Author-X-Name-Last: Madhou
Author-Name: Tayushma Sewak
Author-X-Name-First: Tayushma
Author-X-Name-Last: Sewak
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Title: GDP nowcasting: application and constraints in a small open developing economy
Abstract:
Despite data limitations, an attempt is made to find out if a GDP nowcasting model can provide reliable forecasts for a small open economy. Two competing Bayesian vector autoregressive models are tested rigorously to obtain the optimal model by minimizing in-sample forecasting errors. The main finding of this study is that GDP nowcasting can produce reliable results for a small open economy despite the unavailability of sufficient data sets and the lack of high frequency indicators.
Journal: Applied Economics
Pages: 3880-3890
Issue: 38
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270417
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270417
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Handle: RePEc:taf:applec:v:49:y:2017:i:38:p:3880-3890
Template-Type: ReDIF-Article 1.0
Author-Name: Ning Meng
Author-X-Name-First: Ning
Author-X-Name-Last: Meng
Author-Name: Chris Milner
Author-X-Name-First: Chris
Author-X-Name-Last: Milner
Author-Name: Huasheng Song
Author-X-Name-First: Huasheng
Author-X-Name-Last: Song
Title: Differences in the determinants and targeting of antidumping: China and India compared
Abstract:
Despite both being developing countries, China and India have markedly contrasting patterns in their use and targeting of antidumping (AD) measures. We explore the factors driving AD use by these two countries, considering in turn macroeconomic, strategic and other determinants. We find more regular or systematic features of AD use by China, while India displays a less systematic pattern of AD use. Economic growth, AD club effect and free trade agreement participation are shown to constrain AD use by China. Compared to India, AD use by China is also more sensitive across industries. Furthermore, China targets developed countries more than developing countries, while India is less discriminating with respect to the country type it targets.
Journal: Applied Economics
Pages: 4083-4097
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150954
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150954
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Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4083-4097
Template-Type: ReDIF-Article 1.0
Author-Name: Malathy Duraisamy
Author-X-Name-First: Malathy
Author-X-Name-Last: Duraisamy
Author-Name: P. Duraisamy
Author-X-Name-First: P.
Author-X-Name-Last: Duraisamy
Title: Gender wage gap across the wage distribution in different segments of the Indian labour market, 1983–2012: exploring the glass ceiling or sticky floor phenomenon
Abstract:
Women’s participation in the Indian labour market is not only low but they are also engaged in low-productivity and low-paying jobs. Further, the labour market is segmented by gender, type of employment, sector and location of residence. This study makes an important contribution by examining gender wage gap in India across different segments of the labour market over the wage distribution using national-level representative data spanning the period 1983 to 2012. The empirical results suggest that (i) the male–female raw wage gap has declined over time across the wage distribution, (ii) the gender wage gap attributable to differing returns to characteristics has increased over time and there is evidence of convergence of productive characteristics of men and women, (iii) sticky floor rather than glass ceiling phenomenon is observed in all segments of the labour market and (iv) the adjusted wage gap suggests that women at the bottom of the distribution face higher discrimination than those at the top and this has increased over the years.
Journal: Applied Economics
Pages: 4098-4111
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150955
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150955
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Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4098-4111
Template-Type: ReDIF-Article 1.0
Author-Name: Sucharita Ghosh
Author-X-Name-First: Sucharita
Author-X-Name-Last: Ghosh
Author-Name: C. Lockwood Reynolds
Author-X-Name-First: C. Lockwood
Author-X-Name-Last: Reynolds
Author-Name: Shawn M. Rohlin
Author-X-Name-First: Shawn M.
Author-X-Name-Last: Rohlin
Title: The spillover effects of United States foreign trade zones
Abstract:
This article empirically tests the geographic and economic spillover effects of foreign trade zones (FTZs) in the United States by utilizing propensity score matching and the geographic rules of the programme. While these FTZ sites are designed to support manufacturing, we find that ZIP codes that receive FTZ sites experience growth in new and existing non-manufacturing establishments. Our results also show that FTZs spillover into nearby ZIP codes. We find that ZIP codes that border FTZ ZIP codes also experience positive effects on non-manufacturing establishments and these spillovers are strongest within a 5-mile radius of an FTZ.
Journal: Applied Economics
Pages: 4112-4130
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153787
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153787
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Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4112-4130
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Kelly Burns
Author-X-Name-First: Kelly
Author-X-Name-Last: Burns
Title: The random walk as a forecasting benchmark: drift or no drift?
Abstract:
We examine the proposition that the random walk without drift is more powerful in predicting exchange rates than the random walk with drift. It is demonstrated that there is no theoretical reason why the random walk without drift always outperforms the random walk with drift and that this is an empirical issue. The results show that while the random walk without drift can outperform the random walk with drift in terms of the RMSE, it fails to do so in terms of the ability to predict the direction of change, measures that take into account magnitude and direction, and in terms of profitability. If the drift factor is allowed to change over time by estimating the model in time-varying parameter terms, the random walk with drift performs even better.
Journal: Applied Economics
Pages: 4131-4142
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153788
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153788
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Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4131-4142
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Antonio Campos-Soria
Author-X-Name-First: Juan Antonio
Author-X-Name-Last: Campos-Soria
Author-Name: Miguel Angel Ropero-García
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Ropero-García
Title: Gender segregation and earnings differences in the Spanish labour market
Abstract:
This article analyses the effects of different types of gender segregation on the gender wage differential for the Spanish labour market. Matched employer–employee data from a sample of 226,535 workers are used. These workers are employed in 61 occupations within 26,492 establishments in 51 different industries. Workers belonging to the same industry, establishment or job share common factors which cannot be observed and these factors affect wages. If these unobservable variables are correlated with the explanatory variables, their estimated effects will be biased. For this reason, we estimate the effects of each type of gender segregation on the wage gap using a robust specification to these possible correlations. We obtain that industrial segregation by gender explains a lower part of the wage gap between men and women than previous researches found using standard regressions, while the contributions of establishment segregation and occupational segregation within each establishment are greater.
Journal: Applied Economics
Pages: 4143-4155
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153789
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153789
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Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4143-4155
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Yin
Author-X-Name-First: Wei
Author-X-Name-Last: Yin
Author-Name: Kent Matthews
Author-X-Name-First: Kent
Author-X-Name-Last: Matthews
Title: The determinants and profitability of switching costs in Chinese banking
Abstract:
This article models the determinants of bank switching costs in China in terms of bank characteristics and non-bank variables. It also determines the contribution of switching costs to banks’ profits. Using a sample of 151 banks over the period 2003–2013 it reports a positive relationship between bank profitability and switching costs. The main result is that bank size measured by total assets has a complex relationship with switching costs. Competition between small banks creates the incentive for lock-in and increased switching costs whereas very large banks are less exercised by lock-in and switching costs.
Journal: Applied Economics
Pages: 4156-4166
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153790
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153790
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Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4156-4166
Template-Type: ReDIF-Article 1.0
Author-Name: Marina-Selini Katsaiti
Author-X-Name-First: Marina-Selini
Author-X-Name-Last: Katsaiti
Author-Name: Mrittika Shamsuddin
Author-X-Name-First: Mrittika
Author-X-Name-Last: Shamsuddin
Title: Weight discrimination in the German labour market
Abstract:
We explore the effects of higher body mass index (BMI) or obesity on different labour market outcomes. We extend the present literature by investigating the effect of obesity on (i) promotion likelihood and (ii) unemployment duration, in addition to the effect on (iii) wages and (iv) probability of being employed. We find an obesity penalty on wages, employment likelihood, promotion likelihood and unemployment duration among females in Germany taking into account of endogeneity of BMI and sample selection. We are also able to identify an unexplained effect of obesity on wages, employment and promotion likelihood for females using decomposition techniques that can be attributed to weight discrimination.
Journal: Applied Economics
Pages: 4167-4182
Issue: 43
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1153791
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1153791
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Handle: RePEc:taf:applec:v:48:y:2016:i:43:p:4167-4182
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Mei-Ping Chen
Author-X-Name-First: Mei-Ping
Author-X-Name-Last: Chen
Author-Name: Erh-Yin Sun
Author-X-Name-First: Erh-Yin
Author-X-Name-Last: Sun
Title: Member states’ pact and industry co-movements in the BRICS markets
Abstract:
Through the existence of supply chain relationships among BRICS (Brazil, Russia, India, China and South Africa), we explore the industry return co-movements of the BRICS markets and the impacts of BRICS-related events on the time-varying conditional correlation and volatility. We find that BRICS-related events have increased industry co-movements and substantially reduced volatility. An asymmetry in industry return co-movements shows a strong response to good news. The first formal BRICS summit in 2009 is the most dominant event influencing BRICS industry co-movements, while there is a significant decline in correlations during the 2013 BRICS event. The financial industries of BRICS have the highest co-movements among sampled industries.
Journal: Applied Economics
Pages: 313-334
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197367
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197367
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Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:313-334
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Lechner
Author-X-Name-First: Michael
Author-X-Name-Last: Lechner
Author-Name: Paul Downward
Author-X-Name-First: Paul
Author-X-Name-Last: Downward
Title: Heterogeneous sports participation and labour market outcomes in England
Abstract:
Based on a unique composite dataset measuring heterogeneous sports participation, labour market outcomes and local facilities provision, this article examines for the first time the association between different types of sports participation and employment and earnings in England. Clear associations between labour market outcomes and sports participation are established through matching estimation while controlling for some important confounding factors. The results, which are supplemented and supported by a formal sensitivity analysis, suggest a link between different types of sports participation to initial access to employment and then higher income opportunities with ageing. However, these vary between the genders and across sports. Specifically, the results suggest that team sports contribute most to employability, but that this varies by age across genders and that outdoor activities contribute most towards higher incomes.
Journal: Applied Economics
Pages: 335-348
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197369
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197369
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Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:335-348
Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Larry Li
Author-X-Name-First: Larry
Author-X-Name-Last: Li
Title: The mystery of the Chinese exchange rate regime: basket or no basket?
Abstract:
Economists have taken for granted the claim made by the Chinese government that the policy shift introduced in July 2005 constituted a change in the exchange rate regime from a fixed peg to a basket peg. We demonstrate that neither the stylized facts nor the empirical evidence support the proposition of a basket peg and suggest several reasons as to why China has not adopted this regime. The results could prove useful for identifying the Chinese exchange rate regime in the aftermath of the perceived policy shift following the August 2015 devaluation.
Journal: Applied Economics
Pages: 349-360
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197370
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197370
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Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:349-360
Template-Type: ReDIF-Article 1.0
Author-Name: Megan Gu
Author-X-Name-First: Megan
Author-X-Name-Last: Gu
Author-Name: Meliyanni Johar
Author-X-Name-First: Meliyanni
Author-X-Name-Last: Johar
Title: Profiling hospital utilization in a mixed public–private system
Abstract:
While there is an extensive body of literature on the demand for hospital services, little is known about the interaction between public and private hospitals in a mixed system. In this article, we (1) apply latent class analysis to identify distinct subgroups of patients who use the hospital market differently, (2) characterize each patient type by their personal characteristics and (3) link the patient type to future hospital admissions. We apply our analysis to individual-level longitudinal patient data from Australia, focusing on three popular procedures that are performed in both public and private hospitals. We find 4–5 patient types. The most common types use either a public or a private hospital almost exclusively and absorb a moderate level of hospital resources. The severe types represent 13–17% of patients. The type which uses both sectors makes up 10–20% and tends to have private health insurance coverage. The patient types are predictive of prospective utilizations as we find that patients tend to be admitted to the sector they have used in the past. By revealing how patients use coexisting public and private hospitals, our results have direct implications on health resource financing and allocations.
Journal: Applied Economics
Pages: 361-375
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197371
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197371
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Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:361-375
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Y. Mathä
Author-X-Name-First: Thomas Y.
Author-X-Name-Last: Mathä
Author-Name: Allison Shwachman Kaminaga
Author-X-Name-First: Allison
Author-X-Name-Last: Shwachman Kaminaga
Title: Regional wages and market potential in the enlarged EU: an empirical investigation
Abstract:
This article empirically analyses the link between market potential and regional wages in the enlarged EU. We contribute to the existing literature in several ways: (1) we analyse the link between market potential and wages for the EU27 and (2) deconstruct total market potential into several geographical components and analyse their respective contributions to explaining the geographical wage structure. We correct for existing spatial autocorrelation and endogeneity by using an instrumental variable generalized spatial two-stage least squares (IV GS2SLS).
Journal: Applied Economics
Pages: 376-385
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197372
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197372
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Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:376-385
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Author-Name: Rianne Legerstee
Author-X-Name-First: Rianne
Author-X-Name-Last: Legerstee
Author-Name: Richard Paap
Author-X-Name-First: Richard
Author-X-Name-Last: Paap
Title: Estimating loss functions of experts
Abstract:
We propose a new and simple methodology to estimate the loss function associated with experts’ forecasts. Under the assumption of conditional normality of the data and the forecast distribution, the asymmetry parameter of the lin–lin and linex loss function can easily be estimated using a linear regression. This regression also provides an estimate for potential systematic bias in the forecasts of the experts. The residuals of the regression are the input for a test for the validity of the normality assumption. We apply our approach to a large data set of SKU-level sales forecasts made by experts, and we compare the outcomes with those for statistical model-based forecasts of the same sales data. We find substantial evidence for asymmetry in the loss functions of the experts, with underprediction penalized more than overprediction.
Journal: Applied Economics
Pages: 386-396
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197373
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197373
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Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:386-396
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Turner
Author-X-Name-First: Paul
Author-X-Name-Last: Turner
Author-Name: Justine Wood
Author-X-Name-First: Justine
Author-X-Name-Last: Wood
Title: Nonlinear exchange rate pass-through in industrial economies
Abstract:
This article presents theoretical arguments for a nonlinear pass-through relationship for import and export prices and investigates the relationship empirically. The theoretical argument is based on the menu-cost approach in which small absolute changes in exchange rates may not prompt price changes because the costs of doing so exceed the extra profits generated for firms involved in international trade. This relationship is investigated empirically using quarterly data for the period 1979q1-2015q1 for a sample of 17 countries. In the case of import prices, evidence is found of nonlinear adjustment consistent with the theoretical model in 4 out of 17 cases. In the case of export prices, such a relationship is only evident for two economies in the sample. However, for both the import and export price cases, a significant positive nonlinear relationship is found for the two largest economies in the sample, i.e. the United States and Japan.
Journal: Applied Economics
Pages: 397-402
Issue: 4
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1197374
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1197374
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Handle: RePEc:taf:applec:v:49:y:2017:i:4:p:397-402
Template-Type: ReDIF-Article 1.0
Author-Name: Leslie J. Verteramo Chiu
Author-X-Name-First: Leslie J.
Author-X-Name-Last: Verteramo Chiu
Author-Name: Jura Liaukonyte
Author-X-Name-First: Jura
Author-X-Name-Last: Liaukonyte
Author-Name: Miguel I. Gómez
Author-X-Name-First: Miguel I.
Author-X-Name-Last: Gómez
Author-Name: Harry M. Kaiser
Author-X-Name-First: Harry M.
Author-X-Name-Last: Kaiser
Title: Socially responsible products: what motivates consumers to pay a premium?
Abstract:
The motivation to pay a premium for socially responsible products is partly an expression of consumer concern for the well-being of those involved in the production process. Buying a product with a socially responsible label, and donating to a charity are similarly motivated actions. While there is an extensive literature on the economics of charitable giving that examines motivations to donate as well as on the impacts of labelling on consumer demand, there is little overlap between the two literatures. We bridge these two literatures by investigating whether consumers have heterogeneous motivations for paying a premium. Through a laboratory experiment that auctions coffee with hypothetical socially responsible labels that put different weights on in-kind versus cash transfers, we find that those consumers who prefer an in-kind transfer (paternalistic altruists) are willing to pay a 52.5% price premium over standard coffee. Those who prefer that most of the premium is paid as cash (strong altruists) are willing to pay a 42.5% premium. Finally, those who are indifferent to how the premium is spent by the recipient (warm-glow givers) are willing to pay only a 19.2% premium. We discuss the implications of our results and future research directions.
Journal: Applied Economics
Pages: 1833-1846
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226494
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226494
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Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1833-1846
Template-Type: ReDIF-Article 1.0
Author-Name: Tom Kennedy
Author-X-Name-First: Tom
Author-X-Name-Last: Kennedy
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: George Chen
Author-X-Name-First: George
Author-X-Name-Last: Chen
Title: Refitting the Kuznets curve using a gender-specific threshold model
Abstract:
Previous studies have reached mixed conclusions regarding the relationship between inequality and per capita income. These studies, however, fail to consider gender differences in income inequality and how these may impact on the relationship between income inequality and per capita income. Using Australian taxation statistics, we derive three sets of Gini coefficients (i.e. female, male and total) for the period 1950–2013. We then examine the relationship between inequality and real per capita income and find that a gender-specific threshold panel regression outperforms three other conventional models. Our findings suggest that ‘one set of coefficients does not fit all’ in that the use of aggregate and constant coefficients may mask variations within, and between, gender inequality over time.
Journal: Applied Economics
Pages: 1847-1854
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226495
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226495
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Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1847-1854
Template-Type: ReDIF-Article 1.0
Author-Name: Md. Akhtaruzzaman
Author-X-Name-First: Md.
Author-X-Name-Last: Akhtaruzzaman
Author-Name: Abul Shamsuddin
Author-X-Name-First: Abul
Author-X-Name-Last: Shamsuddin
Title: Australian financial firms’ exposures to the level, slope, and curvature of the interest rate term structure
Abstract:
This study examines the risk exposure of Australian financial firms to changes in the term structure of interest rates. Non-linearity in the interest rate term structure is captured by the three-factor model of interest rate level, slope, and curvature. We observe that financial firms have negative exposures to the interest rate level, while non-financial firms have positive exposures. This finding suggests that financial firms need to hedge against rising interest rates, while non-financial firms need to hedge against falling interest rates. Small banks and insurance companies have a positive risk exposure to the slope factor, while real estate firms have a negative risk exposure to the curvature factor. Though the interest rate level is the most important factor, ignoring the slope and curvature factors could lead to underestimating a financial firm’s overall interest rate risk exposure. These findings are robust to controlling for the orthogonalized market return, time-varying equity risk premium, and the global financial crisis. This study offers practical tools to regulators, such as the Reserve Bank of Australia and Australian Prudential Regulatory Authority for assessing interest rate risk exposures of the financial and non-financial sectors.
Journal: Applied Economics
Pages: 1855-1874
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229411
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229411
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Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1855-1874
Template-Type: ReDIF-Article 1.0
Author-Name: Jian Zhou
Author-X-Name-First: Jian
Author-X-Name-Last: Zhou
Title: Index arbitrage and dynamics between REIT index futures and spot prices
Abstract:
This article contributes to the real estate literature by investigating the pricing relationship between REIT index futures and spot. Based on the cost-of-carry model, we first show that there exist three arbitrage regimes in Australia’s REIT spot-futures price dynamics. Further analysis indicates that the two thresholds, which separate the regimes, are largely consistent with the level dictated by transaction costs. We then estimate a threshold vector error correction model (TVECM). The results show that mean reversion of the mispricing error only takes place in the two outer regimes. Furthermore, we find evidence that REIT spot market is more informationally efficient than the futures market. Given its short history, it will take time for REIT index futures market to mature. Finally, we find that we can enhance hedging performance by accommodating the feature of threshold cointegration displayed by the data. As the futures-spot relationship differs across regimes, we can develop a hedging strategy by adjusting the hedge ratio based on arbitrage regimes. It leads to a greater variance reduction for the hedged portfolio than some conventional methods examined in the existing real estate literature.
Journal: Applied Economics
Pages: 1875-1885
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229413
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229413
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Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1875-1885
Template-Type: ReDIF-Article 1.0
Author-Name: Begoña Giner
Author-X-Name-First: Begoña
Author-X-Name-Last: Giner
Author-Name: Francisca Pardo
Author-X-Name-First: Francisca
Author-X-Name-Last: Pardo
Title: Operating lease decision and the impact of capitalization in a bank-oriented country
Abstract:
This article explores the reasons why firms engage in operating leases and examines the potential impact of a change in the related accounting rules. We focus on the accounting advantage of off-balance financing, which does not affect the typical accounting-based covenants especially important in bank-oriented countries. However, we also consider other economically based arguments. Using manually collected operating lease data for Spanish listed firms, we use the constructive capitalization method to measure as-if liabilities. The results confirm that not only size and industry affect the decision but that firms closer to breaching their covenants are also more inclined to choose operating leases. Consequently, it is argued that such firms will be more affected by the accounting change; indeed, the inclusion of liabilities in the balance sheet might tighten financial covenants in loan agreements as evidenced in the paper. Not surprisingly, firms are strongly opposed to the accounting change.
Journal: Applied Economics
Pages: 1886-1900
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229416
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229416
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Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1886-1900
Template-Type: ReDIF-Article 1.0
Author-Name: Burcak Polat
Author-X-Name-First: Burcak
Author-X-Name-Last: Polat
Title: Financial components of FDI and choice of capital structure: an analysis for 30 OECD countries
Abstract:
Even though the choice of capital structure depends on the three different financial components of foreign direct investment (FDI), previous research has regarded FDI as unidimensional rather than multidimensional. This study addresses new findings in the FDI area and investigates the relevant determinants of capital structure in 30 OECD countries from 2006 to 2014 within the framework of a simultaneous equation model. Our primary findings reveal that each component has its own deterministic features driven by relevant policy variables and risks in the market. While an increase or decrease in equity capital shows the ability of the host country to attract new investments, the subsequent components are mostly used to adjust the equity capital investment exposure.
Journal: Applied Economics
Pages: 1901-1912
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229418
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229418
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Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1901-1912
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Tsung-Hsien Chen
Author-X-Name-First: Tsung-Hsien
Author-X-Name-Last: Chen
Author-Name: Han-Wen Tzeng
Author-X-Name-First: Han-Wen
Author-X-Name-Last: Tzeng
Title: Quantile unit root test and the PPP in Africa
Abstract:
In this study, we apply the Quantile unit root test and revisit the Purchasing Power Parity (PPP) in 20 African countries using real effective exchange rates over the period 1971Q1 to 2012Q4. While traditional unit root tests fail to reject unit root hypothesis in most of the countries, results from Quantile unit root test reject unit root null hypothesis in Ghana, Mauritius, Niger, South Africa, and Togo, providing support for the PPP at least in these five countries. We further estimate the half-life based on Quantile autoregressive (QAR) model to be about 4.57–7.96 quarters (1–2 year).
Journal: Applied Economics
Pages: 1913-1921
Issue: 19
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229423
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229423
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Handle: RePEc:taf:applec:v:49:y:2017:i:19:p:1913-1921
Template-Type: ReDIF-Article 1.0
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Author-Name: Svetlana Maslyuk-Escobedo
Author-X-Name-First: Svetlana
Author-X-Name-Last: Maslyuk-Escobedo
Title: Stochastic convergence in per capita energy consumption and its catch-up rate: evidence from 26 African countries
Abstract:
Using annual data from 1971 to 2014, we examine stochastic conditional convergence in per capita energy consumption for 26 low income, lower middle-income and upper-middle-income African countries. To do so, we use panel unit root tests that allow for cross-sectional dependence and structural breaks as well as the recently developed univariate Residual Augmented Least Squares-Lagrange multiplier (RALS-LM) unit root test with structural breaks. Although for most countries our evidence suggests stochastic conditional convergence, we find divergence for four countries including DR Congo, Senegal, Egypt and Botswana. Consistent with the neoclassical growth models we also examine the catch-up rate between energy consumption levels of African economies and that one of China and investigate its convergence properties. As African economies continue to grow, regional energy consumption disparity narrows, African energy consumption levels will catch up to the ones in China.
Journal: Applied Economics
Pages: 2566-2590
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1549793
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1549793
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Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2566-2590
Template-Type: ReDIF-Article 1.0
Author-Name: Justin Choe
Author-X-Name-First: Justin
Author-X-Name-Last: Choe
Author-Name: Jun Sung Kim
Author-X-Name-First: Jun Sung
Author-X-Name-Last: Kim
Title: Minimax after money-max: why major league baseball players do not follow optimal strategies
Abstract:
Using real-life sports data of Major League Baseball, this paper investigates whether professional players follow the minimax theorem in their strategies. Our empirical results using the 2010 regular-season data show that baseball players do not optimize their strategies: there is a significant difference in their payoffs across strategies, and the sequence of their strategy choices is predictable from their previous actions. Further analysis using individual salaries and key contract variables indicates that a higher salary has a positive impact on following minimax strategies in the regular season. By contrast, a longer contract decreases a player’s incentive to pursue optimal strategies in the postseason. These results have important implications for compensation practices in various fields.
Journal: Applied Economics
Pages: 2591-2605
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558346
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558346
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Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2591-2605
Template-Type: ReDIF-Article 1.0
Author-Name: Emma Persson
Author-X-Name-First: Emma
Author-X-Name-Last: Persson
Author-Name: Sofie Persson
Author-X-Name-First: Sofie
Author-X-Name-Last: Persson
Author-Name: Ulf-G. Gerdtham
Author-X-Name-First: Ulf-G.
Author-X-Name-Last: Gerdtham
Author-Name: Katarina Steen Carlsson
Author-X-Name-First: Katarina
Author-X-Name-Last: Steen Carlsson
Author-Name:
Author-X-Name-First:
Author-X-Name-Last:
Title: Effect of type 1 diabetes on school performance in a dynamic world: new analysis exploring Swedish register data
Abstract:
This paper investigates if the effect of type 1 diabetes mellitus (T1DM) on school performance, documented in prior research, has changed in more recent birth cohorts of children using national Swedish population register data. The issue is of interest because management and treatment of the disease have improved over the last decades and, furthermore, because of changes in the educational grading system. Despite these changes, data indicate a persistent negative effect of T1DM on compulsory and upper secondary school grades with a standardized effect size of −0.109 and −0.070, respectively, and the results appear only marginally smaller compared to earlier findings in cohorts completing school under the previous grading system. Moreover, the results are consistent for alternative model specifications and econometric estimation strategies. Whereas access to new treatment technologies and improved diabetes management strategies has reduced the burden of diabetes in daily life, the results from this study indicate that continued efforts are needed to improve the situation in school for children with T1DM to prevent potential long-term socio-economic consequences.
Journal: Applied Economics
Pages: 2606-2622
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558347
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558347
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Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2606-2622
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Ghio
Author-X-Name-First: Alessandro
Author-X-Name-Last: Ghio
Author-Name: Massimo Ruberti
Author-X-Name-First: Massimo
Author-X-Name-Last: Ruberti
Author-Name: Roberto Verona
Author-X-Name-First: Roberto
Author-X-Name-Last: Verona
Title: Financial constraints on sport organizations’ cost efficiency: the impact of financial fair play on Italian soccer clubs
Abstract:
We analyze the effect of the introduction of stricter financial constraints on the trade-off between sporting and economic results. We apply a stochastic Cobb-Douglas production frontier model to a sample of Italian Serie A teams, i.e. first division, over the period 2005–2015 to evaluate the variation in soccer clubs’ cost efficiency following the application of the UEFA Financial Fair Play (FFP) principles in 2010. FFP imposes stricter financial regulation as a requirement for a club to be admitted to Union of European Football Associations (UEFA) tournaments. Firstly, we find that FFP does not improve the average efficiency of the Italian first division teams. Secondly, we show that FFP has contributed to leveling the playing field, reducing the gap in terms of efficiency between top teams and lower-tier teams.Abbreviations: FFP: Financial Fair Play; UEFA: Union of European Football Associations; DEA: Data Envelopment Analysis; SFA: Stochastic Frontier Analysis
Journal: Applied Economics
Pages: 2623-2638
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558348
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558348
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Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2623-2638
Template-Type: ReDIF-Article 1.0
Author-Name: Amélie Charles
Author-X-Name-First: Amélie
Author-X-Name-Last: Charles
Author-Name: Olivier Darné
Author-X-Name-First: Olivier
Author-X-Name-Last: Darné
Author-Name: Jean-François Hoarau
Author-X-Name-First: Jean-François
Author-X-Name-Last: Hoarau
Title: How resilient is La Réunion in terms of international tourism attractiveness: an assessment from unit root tests with structural breaks from 1981-2015
Abstract:
Even if local policymakers increasingly claim that tourism is one of the key factors of future economic development for the French small island La Réunion, international tourist arrivals are observed to be locked in a stagnation phase since the beginning of the 2000s. Starting from this stylized fact, this article aims to study if this phenomenon results from major external events hurting this economy regularly. Next, by using univariate unit root procedures with structural breaks, we test for evidence of permanent or transitory effects of external shocks on international tourist inflows (total, by source markets, and by category) over the period 1981–2015. Finally, the empirical analysis allows us to reject the null of a unit root. Then, stagnation of tourism arrivals to La Réunion is not due to exogenous shocks but probably results from endogenous impediments within the domestic tourism industry and unsuitable public policies.
Journal: Applied Economics
Pages: 2639-2653
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558349
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558349
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Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2639-2653
Template-Type: ReDIF-Article 1.0
Author-Name: Seyed Ali Madanizadeh
Author-X-Name-First: Seyed Ali
Author-X-Name-Last: Madanizadeh
Author-Name: Hanifa Pilvar
Author-X-Name-First: Hanifa
Author-X-Name-Last: Pilvar
Title: The impact of trade openness on labour force participation rate
Abstract:
In this article, we investigate the impact of trade openness on labour force participation rate. We use tariff rate as the main indicator of trade openness and we employ the number of regional trade agreements and the average tariff rate in the neighbours’ countries as instrumental variables to diminish the endogeneity problem of the tariff rate. We find that trade openness increases the participation rate which is economically and statistically significant. The results show that this correlation is robust under controlling for different variables and using various specifications. We find that 10 percentage point increase in tariff rate lowers the participation rate by 4–6 percentage point and this relationship is more severe in the long run. Finally, we show that changes in labour force population accounts for about 27% of changes in the unemployment rate following a trade liberalization.
Journal: Applied Economics
Pages: 2654-2668
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558350
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558350
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Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2654-2668
Template-Type: ReDIF-Article 1.0
Author-Name: Jayasuriya Mahapatabendige Ruwani Fernando
Author-X-Name-First: Jayasuriya Mahapatabendige Ruwani
Author-X-Name-Last: Fernando
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Yang (Greg) Hou
Author-X-Name-First: Yang (Greg)
Author-X-Name-Last: Hou
Title: Corporate governance and default prediction: a reality test
Abstract:
Default prediction has commanded the attention of researchers for at least 50 years. This paper addresses several testable hypotheses regarding the relations between corporate governance and default prediction. We employ the conventional logistic regression to provide empirical evidence from U.S. default data over the period of 2000 to 2015. Empirical results are consistent with the following notions: First, default firms are associated with high ownership concentration, low shareholder rights, low financial transparency and disclosures, and less board effectiveness. Second, in-sample and out-of-sample tests support the incremental contribution of corporate governance information on default prediction, when compared with the models involving just financial information.
Journal: Applied Economics
Pages: 2669-2686
Issue: 24
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558351
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558351
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Handle: RePEc:taf:applec:v:51:y:2019:i:24:p:2669-2686
Template-Type: ReDIF-Article 1.0
Author-Name: Diego Winkelried
Author-X-Name-First: Diego
Author-X-Name-Last: Winkelried
Author-Name: Javier Torres
Author-X-Name-First: Javier
Author-X-Name-Last: Torres
Title: Economic mobility along the business cycle. The case of Peru
Abstract:
The performance of Latin American countries in reducing poverty and expanding the middle class has been remarkable. By taking a close look at the Peruvian experience, we examine how this aggregate behavior relates to business cycle conditions and whether different population groups share this behavior. We find that social mobility is cyclical; it decreases in recessions but increases with strong economic growth. The reduction in poverty in Peru appears to be the result of a sustained increase in the poverty exit rate together with a prolonged decrease in the poverty entry rate. These results hold among heterogeneous groups and are particularly marked for households regarded as initially disadvantaged.
Journal: Applied Economics
Pages: 1894-1906
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529401
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529401
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Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1894-1906
Template-Type: ReDIF-Article 1.0
Author-Name: Yann Braouezec
Author-X-Name-First: Yann
Author-X-Name-Last: Braouezec
Title: Public versus private insurance system with (and without) transaction costs: optimal segmentation policy of an informed monopolist
Abstract:
Computer-mediated transactions allow insurance companies to customize their contracts, while transaction costs limit this tendency toward customization. To capture this phenomenon, we develop a complete-information framework in which it is costly to design a new market segment when the segmentation policy (number and design of segments) is endogenously chosen. Both the case of a private and a public insurer are considered. Without transaction costs, these two insurance systems are equivalent in terms of social welfare and participation. With transaction costs, this equivalence is no longer present, and the analysis of this difference is the subject of this article.
Journal: Applied Economics
Pages: 1907-1928
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529402
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529402
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Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1907-1928
Template-Type: ReDIF-Article 1.0
Author-Name: Abdelwahed Omri
Author-X-Name-First: Abdelwahed
Author-X-Name-Last: Omri
Author-Name: Karim Soussou
Author-X-Name-First: Karim
Author-X-Name-Last: Soussou
Author-Name: Nadia Ben Sedrine Goucha
Author-X-Name-First: Nadia
Author-X-Name-Last: Ben Sedrine Goucha
Title: On the post-financial crisis performance of Islamic mutual funds: the case of Riyad funds
Abstract:
Using Riyad Capital mutual funds as a proxy for Saudi Arabian mutual funds, this paper empirically compares the risk-adjusted performance and investment style of Islamic mutual funds with that of conventional funds in the wake of the recent global financial crisis of 2009–2014. Absolute and relative risk-adjusted measures with single factor (Jensen) and multifactor (Carhart) models are applied. Our findings suggest that Islamic funds outperformed conventional funds domestically, given similar risk exposure, and produced comparable results under lower market risk globally. The results show that Islamic funds are a relatively big cap from the strong statistical significance registered on the global side as evidenced by the difference portfolio outcomes. In addition, the difference portfolios provide statistical evidence that Islamic funds are more value-oriented compared to conventional funds on both fronts. Furthermore, Islamic funds tend to slightly favour a contrarian trading investment strategy as suggested by statistically significant local portfolio value and global difference portfolios results. The results of home bias test show stronger ties by local Islamic funds to local market relative to the global proxy suggesting that domestic investors and managers favour Islamic funds over conventional funds, thus confirming a local preference for Shari’ah-compliant investments.
Journal: Applied Economics
Pages: 1929-1946
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529403
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529403
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Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1929-1946
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Mazza
Author-X-Name-First: Paolo
Author-X-Name-Last: Mazza
Author-Name: Mikael Petitjean
Author-X-Name-First: Mikael
Author-X-Name-Last: Petitjean
Title: Testing the effect of technical analysis on market quality and order book dynamics
Abstract:
We find empirical support for the theoretical finding in agent-based models of limit order book markets that the effect of technical trading on market quality is not positive. When signals occur, technical traders lower liquidity as proxied by the relative spread, the effective spread, the realized spread, the dispersion and the slope in the order book. Technical trading is also found to be accompanied by rising volatility. There is overall strong empirical support against the hypothesis that technical trading has no effect on order book dynamics.
Journal: Applied Economics
Pages: 1947-1976
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529404
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529404
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Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1947-1976
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Author-Name: Adam G. Walke
Author-X-Name-First: Adam G.
Author-X-Name-Last: Walke
Title: Empirical evidence regarding electricity consumption and urban economic growth
Abstract:
Links between electricity consumption and economic growth are fairly well documented for national economies, but less so for urban economies. The analysis of such relationships at the sub-national level of aggregation can potentially offer a useful complement to national-level research. This study examines the electricity-growth nexus in El Paso, Texas, while also considering the roles of capital stocks and employment. Testing suggests the presence of cointegrating relationships and a vector error correction model is estimated. Granger causality tests reveal the absence of causality between electricity consumption and personal income, implying that energy conservation efforts will have a neutral effect on economic growth. Furthermore, the results indicate that causality runs from the capital stock and employment to both personal income and electricity consumption. This echoes previous research regarding the importance of accounting for capital and labour factors of production in studies of aggregate electricity utilization and economic performance. The methodology used in this analysis to develop a broad synthetic measure of the urban capital stock, including various categories of public infrastructure, can also be applied to other regions and urban economies.
Journal: Applied Economics
Pages: 1977-1988
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529405
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529405
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Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1977-1988
Template-Type: ReDIF-Article 1.0
Author-Name: Jinsub Choi
Author-X-Name-First: Jinsub
Author-X-Name-Last: Choi
Title: The effect of school capital investments on local housing markets and household sorting in California
Abstract:
In this paper, I investigate what effect school capital investments have on housing values and household location choice in the context of the Tiebout model. This research identifies an exogenous variation in school capital investments by exploiting the lottery allocation of entitlement to an interest-free construction bond among districts in California. Although the lottery is exogenous, additional non-lottery allocation complicates identification. This paper develops an empirical model based on sample selection methods in order to create a counterfactual state in which additional non-lottery allocation would not have existed. I find that receiving the interest-free construction bond increases school capital expenditure and housing values at the district level. I view the increase in housing values as the capitalization of school capital investments. I find little evidence for the effect of the interest-free construction bond on household sorting and student’s academic outcomes.
Journal: Applied Economics
Pages: 1989-2000
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1537475
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1537475
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Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:1989-2000
Template-Type: ReDIF-Article 1.0
Author-Name: Viet-Ngu Hoang
Author-X-Name-First: Viet-Ngu
Author-X-Name-Last: Hoang
Author-Name: Son Nghiem
Author-X-Name-First: Son
Author-X-Name-Last: Nghiem
Author-Name: Xuan-Binh Vu
Author-X-Name-First: Xuan-Binh
Author-X-Name-Last: Vu
Title: Stunting and academic achievement among Vietnamese children: new evidence from the young lives survey
Abstract:
Most of the empirical literature on the relationship between the health condition and skill development of school children are based on a static relationship between health and skill development. This article contributes to the literature by examining the dynamic relationship between stunting and school achievement using data from the first three waves of the Young Lives Survey in Vietnam. Using both structural equation and hybrid estimators, empirical results show that past school performance is the most significant predictor of the academic performance. Stunting has a significant negative effect on school performance, and its effect in the long run is as twice as much its effect in the short run. The empirical evidence also shows that the age of the child, mothers’ literacy, access to electricity and household consumption significantly affect school performance.
Journal: Applied Economics
Pages: 2001-2009
Issue: 18
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1537476
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1537476
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Handle: RePEc:taf:applec:v:51:y:2019:i:18:p:2001-2009
Template-Type: ReDIF-Article 1.0
Author-Name: Iftekhar Robin
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Robin
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Financial deregulation and productivity growth in banking sector: empirical evidence from Bangladesh
Abstract:
This article examines the effects of regulatory reform on productivity growth in the Bangladesh banking industry. We use a unique balanced panel dataset comprising bank-level annual data from the early deregulation year (1984) to the most recent available period (2012) from major commercial banks in Bangladesh. Applying the Färe-Primont index, the paper provides estimates of productivity growth and identifies sources of total factor productivity (TFP) change. Empirical results show the sample banks have experienced positive TFP change after the financial deregulation. On average, TFP growth is higher in private banks than their public sector counterparts in the post-reform period. In addition, the decomposition analysis shows technological progress is the main driver of productivity change. Similar results are obtained by using the stochastic frontier analysis (SFA). Thus, empirical results remain robust irrespective of the methodology used. The regression analysis finds a positive technical change in the first stage of the reform program, i.e. during the transition period, as leading banks employ advanced technology to compete with potential new entrants. The result also shows that the banking industry still remains concentrated within the state-owned banks.
Journal: Applied Economics
Pages: 5104-5121
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1607244
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1607244
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Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5104-5121
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre-Jean Messe
Author-X-Name-First: Pierre-Jean
Author-X-Name-Last: Messe
Author-Name: François-Charles Wolff
Author-X-Name-First: François-Charles
Author-X-Name-Last: Wolff
Title: Healthier when retiring earlier? Evidence from France
Abstract:
This paper contributes to the literature on the health-retirement relationship by looking at the effect of retiring before legal age on health in later life in France. To account for the endogeneity of the early retirement decision, our identification strategy relies on eligibility rules to a long-career early retirement scheme introduced in France in 2004 that substantially increased the proportion of older workers leaving their last job before the legal age of 60 years. We find a positive correlation between early retirement and health problems among male retirees. However, we fail to find any significant causal effect of early retirement on poor health once we account for the endogeneity of the decision to retire before the legal age. Controlling for working conditions does not influence the effect of retirement and occupying a demanding job is harmful to health after retirement regardless of the retirement date. Similar results are found for female retirees.
Journal: Applied Economics
Pages: 5122-5143
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610710
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610710
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Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5122-5143
Template-Type: ReDIF-Article 1.0
Author-Name: Dominique Meurs
Author-X-Name-First: Dominique
Author-X-Name-Last: Meurs
Author-Name: Emmanuel Valat
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Valat
Title: A better job thanks to personal networks? An evaluation for migrants who arrived in France before age 18
Abstract:
It is more difficult for migrants than natives to find a job in their host country, so many of them have to accept, at least temporarily, a job that is below their level of qualification. This represents a waste of human capital for society and can undermine social cohesion. Relying on social relationships might help them to bypass some of the obstacles that prevent them from finding a job that matches their skillset. We focus on migrants who arrived in France before the age of 18 years, who were educated entirely or partially in France. We use the rich French Trajectories and Origins dataset for 2009 to study the impact of personal contacts on the quality of the current employment. We measure the job quality using an indicator based on the educational requirement for a given occupation. To address the endogeneity between our dependent variable (holding a suitable job or not) and the variable of interest (employment found through a personal contact or not), we use the variable ‘sibling(s) in France’ as an instrument: this variable influences an individual’s probability of finding a job through contacts but does not influence directly the quality of the employment. Our results indicate that for these migrants, finding a job through personal contacts strongly and positively impacts the occupational status attained: it raises both women’s and men’s probability of holding a suitable job by more than 0.40 points.
Journal: Applied Economics
Pages: 5144-5159
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610711
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610711
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Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5144-5159
Template-Type: ReDIF-Article 1.0
Author-Name: Carl Magnus Bjuggren
Author-X-Name-First: Carl Magnus
Author-X-Name-Last: Bjuggren
Author-Name: Niklas Elert
Author-X-Name-First: Niklas
Author-X-Name-Last: Elert
Title: Gender differences in optimism
Abstract:
This article examines gender differences in optimism about the economy. We measure optimism using Swedish survey data in which respondents stated their beliefs about the country’s future economic situation. We argue that this measure of optimism is preferable to common measurements in the literature since it avoids confounding individuals’ economic situation with their perception of the future and it can be compared to economic indicators. In line with previous research, we find that men are more optimistic than women; however, men are also more prone to be wrong in their beliefs about the future economic situation. Furthermore, in sharp economic downturns, the gender differences in optimism disappear. This convergence in beliefs can be explained by the amount of available information on the economy.
Journal: Applied Economics
Pages: 5160-5173
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610714
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610714
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Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5160-5173
Template-Type: ReDIF-Article 1.0
Author-Name: Anne Sophie Oxholm
Author-X-Name-First: Anne Sophie
Author-X-Name-Last: Oxholm
Author-Name: Sibilla Di Guida
Author-X-Name-First: Sibilla
Author-X-Name-Last: Di Guida
Author-Name: Dorte Gyrd-Hansen
Author-X-Name-First: Dorte
Author-X-Name-Last: Gyrd-Hansen
Author-Name: Kim Rose Olsen
Author-X-Name-First: Kim Rose
Author-X-Name-Last: Olsen
Title: Taking care of high-need patients in capitation-based payment schemes – an experimental investigation into the importance of market conditions
Abstract:
Many health-care systems use provider payment as an instrument to ensure an efficient and equitable delivery of care. Capitation-based payment schemes are popular because they contain costs. However, they are known to lead to underprovision of care, especially to high-need patients. Using a laboratory experiment, we test whether the availability of resources affects providers’ response to a capitation-based scheme. We find that the relative underprovision of care to high-need patients exists both when providers are resource abundant and constrained. Next, we introduce two different versions of the scheme and test whether they incentivize providers to take better care of high-need patients. One scheme ring-fences part of the capitation payment to a fixed physician salary, whilst the other scheme differentiates payments based on patients’ expected need of care. We find that high-need patients gain the most from a fixed provider salary under resource abundance, but find no difference in gains between patient types under resource constraint. Our results also show that differentiation of capitation makes providers take relatively better care of patients linked to an above average payment compared to a below average payment, regardless of resource constraints. Our findings suggest that both the design of the scheme and the market condition affect providers’ patient prioritization under capitation.
Journal: Applied Economics
Pages: 5174-5184
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610715
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610715
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Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5174-5184
Template-Type: ReDIF-Article 1.0
Author-Name: Ronald A. Ratti
Author-X-Name-First: Ronald A.
Author-X-Name-Last: Ratti
Author-Name: Joaquin L. Vespignani
Author-X-Name-First: Joaquin L.
Author-X-Name-Last: Vespignani
Title: What drives the global official/policy interest rate?
Abstract:
We construct a GFAVAR model with newly released global data from the Federal Reserve Bank of Dallas to investigate the drivers of global official/policy interest rate. We find that 66% of movement in global official/policy interest rates is attributed to changes in global monetary aggregates (23%), oil prices (19%), global output (16%) and global prices (8%). Global official/policy interest rates respond significantly to increases in global output, inflation and oil prices. Increases in global policy interest rates are associated with reductions in global prices and global output. The response in official/policy interest rate for the emerging countries is more to global inflation, for the advanced countries (excluding the U.S.) is more to global output, and for the U.S. is to both global output and inflation.
Journal: Applied Economics
Pages: 5185-5190
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610716
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610716
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Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5185-5190
Template-Type: ReDIF-Article 1.0
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Rébecca Stekelorum
Author-X-Name-First: Rébecca
Author-X-Name-Last: Stekelorum
Author-Name: Jamal Elbaz
Author-X-Name-First: Jamal
Author-X-Name-Last: Elbaz
Author-Name: David Duchamp
Author-X-Name-First: David
Author-X-Name-Last: Duchamp
Title: Getting into the energy efficiency scene: does corporate social responsibility matter for energy efficiency in SMEs?
Abstract:
A growing body of literature argues that improving energy efficiency is an essential step that firms must take to mitigate climate change issues. It is assumed that corporate social responsibility (CSR) in general plays a prominent role in firms’ policies, and this paper specifically investigates the effects of the individual CSR dimensions on SMEs’ energy efficiency improvement. Based on data from a sample of 146 thousand SMEs, and using logit model, and fuzzy set qualitative comparative analysis, the study reveals that high activities in social, environmental and economic CSR dimensions are associated with high energy efficiency. Specifically, the environmental CSR dimension has the highest contribution to improving energy efficiency. Furthermore, this study indicates that energy efficiency improvement can be achieved by large SMEs provided they have developed simultaneously the environmental, social, and economic CSR dimensions. In doing so, this study answers to recent calls for more research on CSR-energy efficiency relationship and addresses with greater precision why it matters to relate the role of the CSR dimensions and energy efficiency. Furthermore, this study can be of value to policymakers who are called to promote CSR practices of SMEs in order to foster their energy efficiency.
Journal: Applied Economics
Pages: 5191-5204
Issue: 47
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610719
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610719
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Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5191-5204
Template-Type: ReDIF-Article 1.0
Author-Name: Heesun Jang
Author-X-Name-First: Heesun
Author-X-Name-Last: Jang
Author-Name: Xiaodong Du
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Du
Title: Evolving techniques in production function identification illustrated in the case of the US dairy
Abstract:
We estimate production technologies of major dairy producing regions in the U.S. The simultaneity and sample selection biases are carefully corrected following the recent development in the literature. The commonly applied control function approaches are found to be misleading in correcting for biases of coefficient estimates on flexible and quasi-fixed input variables. We show that the emerging dairy regions have relatively higher aggregate productivity than traditional regions. Dynamic decomposition results indicate that surviving farms play a more important role in regional productivity growth than entering and exiting farms. Farm- and regional-level driving forces of farm productivity are also examined.
Journal: Applied Economics
Pages: 1463-1477
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527457
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527457
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Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1463-1477
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Balaguer-Coll
Author-X-Name-First: Maria Teresa
Author-X-Name-Last: Balaguer-Coll
Author-Name: Maria Isabel Brun-Martos
Author-X-Name-First: Maria Isabel
Author-X-Name-Last: Brun-Martos
Author-Name: Laura Márquez-Ramos
Author-X-Name-First: Laura
Author-X-Name-Last: Márquez-Ramos
Author-Name: Diego Prior
Author-X-Name-First: Diego
Author-X-Name-Last: Prior
Title: Local government efficiency: determinants and spatial interdependence
Abstract:
We analyse the determinants of local government efficiency taking into account the presence of spatial interactions among neighbouring municipalities. To do so, first we estimate an efficiency index using the robust order-m methodology in Valencian municipalities (Spain). Second, we examine the socio-economic, political and budgetary factors that might influence efficiency levels. Finally, we analyse the spatial interactions present in our data. The results of estimating a spatial autoregressive model show that government efficiency in neighbouring municipalities positively affects the local government’s own efficiency. This highlights the importance of considering spatial dependence structures in studies on efficiency in the public sector.
Journal: Applied Economics
Pages: 1478-1494
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527458
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527458
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Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1478-1494
Template-Type: ReDIF-Article 1.0
Author-Name: Ikerne del Valle
Author-X-Name-First: Ikerne
Author-X-Name-Last: del Valle
Author-Name: Kepa Astorkiza
Author-X-Name-First: Kepa
Author-X-Name-Last: Astorkiza
Title: Bioeconomic diversity dynamics of a marine ecosystem
Abstract:
This paper models the bio-economic diversity dynamics of a marine ecosystem made up by its entire commercial fish species and, from the fitted model, obtains a quantitative measure of its resilience to disturbance in terms of recovery time after a shock. Such shocks might be produced by both, downturns in catches and/or prices related to changing regulatory and environmental conditions. To that end, monthly time series of bio-economic diversity indices will be used and the framework of a mixed cyclical ARFIMA joint with a GARCH type heteroscedaticity model will be explored to analyse the dynamic properties of such indices and, based on the estimated impulse response functions (IRF) to measure the effects and duration of a unitary random shock or disturbance. One of our findings is that bio-economic diversity is a mean-reverting process with an estimated recovery time between 7 and 10 years.
Journal: Applied Economics
Pages: 1495-1513
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527459
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527459
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Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1495-1513
Template-Type: ReDIF-Article 1.0
Author-Name: Samir Huseynov
Author-X-Name-First: Samir
Author-X-Name-Last: Huseynov
Author-Name: Bachir Kassas
Author-X-Name-First: Bachir
Author-X-Name-Last: Kassas
Author-Name: Michelle S. Segovia
Author-X-Name-First: Michelle S.
Author-X-Name-Last: Segovia
Author-Name: Marco A. Palma
Author-X-Name-First: Marco A.
Author-X-Name-Last: Palma
Title: Incorporating biometric data in models of consumer choice
Abstract:
The use of neuro-physiological data in models of consumer choice is gaining popularity. This article presents some of the benefits of using psycho-physiological data in analyzing consumer valuation and choice. Eye-tracking, facial expressions, and electroencephalography (EEG) data were used to construct three non-conventional choice models, namely, eye-tracking, emotion and brain model. The predictive performance of the non-conventional models was compared to a baseline model, which was based entirely on conventional data. While the emotion and brain models proved to be as good as conventional data in explaining and predicting consumer choice, the eye-tracking model generated superior predictions. Moreover, we document a significant increase in predictive power when biometric data from different sources were combined into a mixed model. Finally, we utilize a machine learning technique to sparse the data and enhance out-of-sample prediction, thus showcasing the compatibility of biometric data with well-established statistical and econometric methods.
Journal: Applied Economics
Pages: 1514-1531
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527460
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527460
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Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1514-1531
Template-Type: ReDIF-Article 1.0
Author-Name: Clinton L. Neill
Author-X-Name-First: Clinton L.
Author-X-Name-Last: Neill
Author-Name: Rodney B. Holcomb
Author-X-Name-First: Rodney B.
Author-X-Name-Last: Holcomb
Author-Name: Kellie Curry Raper
Author-X-Name-First: Kellie Curry
Author-X-Name-Last: Raper
Author-Name: Brian E. Whitacre
Author-X-Name-First: Brian E.
Author-X-Name-Last: Whitacre
Title: Effects of spatial density on veterinarian income: where are all of the veterinarians?
Abstract:
With increased numbers of veterinarians in the market, it is critical to understand how this increased competition affects income potential at multiple levels. This study presents an empirical approach that incorporates local and nonlocalised spatial competition of firms into one model. By analysing the market for veterinarians using a spatial weight matrix approach, we are able to quantify localized and nonlocalised competition which assists in defining relevant market areas for veterinarians. Specifically, increased density within their county and surrounding counties decreases veterinarian income. Thus, the potential market area for veterinarians is larger than the local/county market in which they practice. This is important for veterinarians when choosing a location to practice, as they must consider the competition and demand in local and non-local areas.
Journal: Applied Economics
Pages: 1532-1540
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527461
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527461
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Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1532-1540
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Satchell
Author-X-Name-First: Stephen
Author-X-Name-Last: Satchell
Author-Name: Susan Thorp
Author-X-Name-First: Susan
Author-X-Name-Last: Thorp
Author-Name: Oliver Williams
Author-X-Name-First: Oliver
Author-X-Name-Last: Williams
Title: Reversing disbursement rates to estimate stationary wealth processes for endowments with recursive preferences
Abstract:
Endowments have been accused of hoarding their wealth. However, the theoretically ideal spending plan remains unclear and, in practice, endowments follow a range of rules. Here we derive and estimate the optimal spending plans of an infinitely lived charity or endowment with an Epstein-Zin-Weil utility function, given general Markovian returns to wealth. We analyse two special cases: first, where spending is a power function of last period’s wealth; and second where the endowment uses ‘payout smoothing’. Via non-linear least squares, we estimate the optimal spending rate and the elasticity of inter-temporal substitution for an endowment with a typical diversified portfolio and for a portfolio of hedge funds. In a new approach, we use maximum entropy methods to characterize the returns distribution of an endowment whose spending plan conforms with the optimality condition. We confirm that the estimated returns distribution is largely consistent with the optimal spending plan.
Journal: Applied Economics
Pages: 1541-1557
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527462
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527462
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Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1541-1557
Template-Type: ReDIF-Article 1.0
Author-Name: Kejo Starosta
Author-X-Name-First: Kejo
Author-X-Name-Last: Starosta
Author-Name: Sonia Budz
Author-X-Name-First: Sonia
Author-X-Name-Last: Budz
Author-Name: Michael Krutwig
Author-X-Name-First: Michael
Author-X-Name-Last: Krutwig
Title: The impact of German-speaking online media on tourist arrivals in popular tourist destinations for Europeans
Abstract:
This empirical study analyzes the relationship between the sentiments in online media with regard to travel destinations and corresponding tourist arrivals. We expect the media reports on political and economic instability and turmoil to enhance tourist arrival nowcasts and forecasts, as they can probably complement them with information on disruptions and shocks. Therefore, we believe this research will help to build better models for tourism demand nowcasting and forecasting. We use the sentiment in the German-speaking online media because the German-speaking region is the most populated in Europe and has the largest group of travelers visiting destinations in and around Europe.An artificial neural network is used to analyze the mood of the media. The software classifies news items regarding potential tourist destinations with either positive or negative labels. The number of positive and negative news items is used to build sentiment indices for popular tourist destinations for Europeans.Our results show strong correlations between the mood concerning tourist destinations and tourist arrivals in these countries. Indeed, disruptions and shocks prevalent in the news are reflected in similar ratios in both tourist arrivals and sentiment indices. These results can be used as a new explanatory variable for tourism demand modelling.
Journal: Applied Economics
Pages: 1558-1573
Issue: 14
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527463
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527463
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Handle: RePEc:taf:applec:v:51:y:2019:i:14:p:1558-1573
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Huang
Author-X-Name-First: Wei
Author-X-Name-Last: Huang
Author-Name: Agyenim Boateng
Author-X-Name-First: Agyenim
Author-X-Name-Last: Boateng
Title: Executive shareholding, compensation, and analyst forecast of Chinese firms
Abstract:
We examine the impact of executive and leadership shareholding and cash compensation on analyst forecast error and dispersion as proxies for information asymmetry. We find that firms pay higher compensation (or excess compensation) to executives and directors are associated with higher information asymmetry. The positive association is stronger where executives’ and directors’ shareholdings are higher. Shareholding appears to facilitate managerial entrenchment and gives highly paid executives/leadership stronger structural power which adversely affects information disclosure leading to larger forecast error and dispersion. These results are robust to different measures of compensation and alternative models controlling for the predictability of firm-level earnings. Our findings indicate that executive/director shareholding and compensation do not provide sufficient incentives for information disclosure by Chinese firms.
Journal: Applied Economics
Pages: 1459-1472
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218432
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218432
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Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1459-1472
Template-Type: ReDIF-Article 1.0
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Rongrong Li
Author-X-Name-First: Rongrong
Author-X-Name-Last: Li
Author-Name: Qiankun Sun
Author-X-Name-First: Qiankun
Author-X-Name-Last: Sun
Title: How the heterogeneity in investment horizons affects market trends
Abstract:
To investigate the relationship between the liquidity and the divergent degree of heterogeneous investors with different investment horizons, we propose an agent-based model based on the assumptions of the fractal market hypothesis. A laboratory market is used to investigate the impact of the divergent degree on the stability of the financial market. Simulation results indicate that the market becomes more stable as investors become increasingly divergent and are more likely to absorb the orders of the other side and maintain a narrow trade gap. Moreover, with highly heterogeneous investors, the market is more efficient, less liable to crash and less volatile. The simulation, based on the agent-based model, demonstrates that the interactions and herding behaviours of investors lead to a market crash when the divergent structure shrinks and only limited investment horizons are available. The result also suggests an alternate explanation of the anomaly of efficient market hypothesis, which shows why the momentum and contrarian strategies can earn excess returns in the short term and the long term, respectively. It also verifies the hypothesis that heterogeneous investors with different investment horizons provide market liquidity.
Journal: Applied Economics
Pages: 1473-1482
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218433
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218433
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Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1473-1482
Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: Blaming suicide on NASA and divorce on margarine: the hazard of using cointegration to derive inference on spurious correlation
Abstract:
Contrary to common belief, cointegration testing may not distinguish between spurious relations and genuine ones. It is demonstrated that highly correlated series appear as cointegrated, even though common sense tells us that the underlying relation does not make sense. Empirical testing using simulated data, data from daily life and historical data on interest rates shows that cointegration may fail not only to detect spurious correlation but also to capture cointegration in a genuine relation. Cointegration testing to reveal spurious correlation can only be used in conjunction with theory, common sense and intuition.
Journal: Applied Economics
Pages: 1483-1490
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218434
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218434
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Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1483-1490
Template-Type: ReDIF-Article 1.0
Author-Name: Katja Ignatieva
Author-X-Name-First: Katja
Author-X-Name-Last: Ignatieva
Author-Name: Natalia Ponomareva
Author-X-Name-First: Natalia
Author-X-Name-Last: Ponomareva
Title: Commodity currencies and commodity prices: modelling static and time-varying dependence
Abstract:
This article employs the copula approach to study the relationship between exchange rates and commodity prices for large commodity exporters. Using data for the nominal exchange rates of four commodity currencies (Australian, Canadian and New Zealand dollars, and Norwegian krone) against the US dollar and the relevant country-specific commodity price indices, constructed on a daily basis, we find (1) a positive dependence between the values of commodity currencies and commodity indices, i.e. a commodity index increases when a respective currency appreciates and provides several explanations for this finding; (2) no major asymmetries in the tail dependence for most pairs of exchange rates and commodity indices and (3) a pronounced increase in the time-varying tail dependence following the global financial crisis.
Journal: Applied Economics
Pages: 1491-1512
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1221038
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221038
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Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1491-1512
Template-Type: ReDIF-Article 1.0
Author-Name: Bing Zhang
Author-X-Name-First: Bing
Author-X-Name-Last: Zhang
Title: How do great shocks influence the correlation between oil and international stock markets?
Abstract:
We investigate the impacts of great shocks (2003 Iraq War and 2008 Financial Crisis) on the correlations between oil and US/China stock markets, utilizing a novel MADCC (mixed asymmetry dynamic conditional correlation) model. This model successfully captures the coexistence of opposite signed asymmetries. We find that great shocks indeed increased the correlations. Further, results from the news impact surfaces indicate that correlations between oil and stock markets are higher to joint negative shocks; however, correlation between stock markets has stronger response to joint positive shocks.
Journal: Applied Economics
Pages: 1513-1526
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1221040
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221040
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Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1513-1526
Template-Type: ReDIF-Article 1.0
Author-Name: Claudiu Tiberiu Albulescu
Author-X-Name-First: Claudiu Tiberiu
Author-X-Name-Last: Albulescu
Author-Name: Cornel Oros
Author-X-Name-First: Cornel
Author-X-Name-Last: Oros
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Title: Oil price–inflation pass-through in Romania during the inflation targeting regime
Abstract:
In the wake of the inflation-targeting strategy in Romania, we estimate the impact of international oil prices upon the consumer price index (CPI) and core inflation. The inflation target was systematically missed by the monetary authorities who explain this failure by exogenous factors. Using a frequency domain framework, we show that the oil price–inflation pass-through can be observed only for those components of inflation which include volatile prices and only in the medium run. Our results put forward that the constant missing of the target cannot be explained by the oil price–inflation pass-through and the credibility of the strategy is put into question.
Journal: Applied Economics
Pages: 1527-1542
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1221041
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221041
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Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1527-1542
Template-Type: ReDIF-Article 1.0
Author-Name: Darold Barnum
Author-X-Name-First: Darold
Author-X-Name-Last: Barnum
Author-Name: Jason Coupet
Author-X-Name-First: Jason
Author-X-Name-Last: Coupet
Author-Name: John Gleason
Author-X-Name-First: John
Author-X-Name-Last: Gleason
Author-Name: Abagail McWilliams
Author-X-Name-First: Abagail
Author-X-Name-Last: McWilliams
Author-Name: Annaleena Parhankangas
Author-X-Name-First: Annaleena
Author-X-Name-Last: Parhankangas
Title: Impact of input substitution and output transformation on data envelopment analysis decisions
Abstract:
Data envelopment analysis (DEA) can aid managerial decision-making because it offers an opportunity to measure organizational performance in a holistic manner, aggregating data from partial indicators into a single comprehensive measure. However, there are some methodological hazards associated with the use of DEA that are especially relevant to managerial decisions, but which have been largely ignored in the literature. Herein, we identify and show the impact of a ubiquitous methodological hazard in DEA modelling – the economic assumptions regarding input substitutions and output transformations.
Journal: Applied Economics
Pages: 1543-1556
Issue: 15
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1221042
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221042
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Handle: RePEc:taf:applec:v:49:y:2017:i:15:p:1543-1556
Template-Type: ReDIF-Article 1.0
Author-Name: Daeyong Lee
Author-X-Name-First: Daeyong
Author-X-Name-Last: Lee
Title: Dividend taxation and household dividend portfolio decisions: evidence from the U.S. Jobs and Growth Tax Relief Reconciliation Act of 2003
Abstract:
This study examines the dividend clientele hypothesis by focusing on the preferential tax treatment of qualified dividends provided by the 2003 Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) in the United States. Using the Public Use Tax File data, the author finds that the ratios of dividends to long-term capital gains before the 2003 tax act significantly declined with household tax rate differentials between dividends and long-term capital gains, but such a negative tax effect on the ratios disappears afterwards. This seemingly tax-inefficient composition of dividends and long-term capital gains after the tax act arises from households’ ability to reduce their tax burdens on stocks by exploiting the new preferential tax treatments on qualified dividends under JGTRRA. That is, households in the upper tax bracket hold significantly greater shares of qualified dividends relative to ordinary dividends after the tax act.
Journal: Applied Economics
Pages: 723-737
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205722
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205722
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Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:723-737
Template-Type: ReDIF-Article 1.0
Author-Name: H. Kent Baker
Author-X-Name-First: H. Kent
Author-X-Name-Last: Baker
Author-Name: Imed Chkir
Author-X-Name-First: Imed
Author-X-Name-Last: Chkir
Author-Name: Samir Saadi
Author-X-Name-First: Samir
Author-X-Name-Last: Saadi
Author-Name: Ligang Zhong
Author-X-Name-First: Ligang
Author-X-Name-Last: Zhong
Title: What drives the high moments of hedge fund returns?
Abstract:
We study the high-moment distribution of hedge fund returns and identify factors that drive high-moment risk. Using hedge fund monthly returns, we find a strong correlation between the first four moments of returns (i.e. mean, standard deviation (SD), skewness, and kurtosis) and different characteristics of the funds such as leverage, liquidity, incentives, and strategy-related factors. We find that after controlling for other factors, incentives-related factors and a hedge fund’s specific strategy have the greatest impact on the distribution of fund returns. Our evidence also suggests investors allocate across hedge fund characteristics while placing greater emphasis on fund strategies and incentive factors.
Journal: Applied Economics
Pages: 738-755
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205723
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205723
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Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:738-755
Template-Type: ReDIF-Article 1.0
Author-Name: Ewelina Sokołowska
Author-X-Name-First: Ewelina
Author-X-Name-Last: Sokołowska
Title: Does growing wealth influence hedge funds’ development? An empirical analysis
Abstract:
Alternative investments, such as hedge funds, have, in last years, become an integral part of the investment portfolios of the wealthy. The article’s goal is also to answer the following research question: Does the global wealth of the world have impact on the global value of the hedge funds’ assets? We also try to forecast the value of the hedge funds’ assets for the next years 2015–2017. The results from this study would also be valuable to investors and other stakeholders, such as the regulators and the creditors of the hedge funds.
Journal: Applied Economics
Pages: 756-768
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205724
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205724
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Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:756-768
Template-Type: ReDIF-Article 1.0
Author-Name: Rajibur Reza
Author-X-Name-First: Rajibur
Author-X-Name-Last: Reza
Author-Name: Gurudeo Anand Tularam
Author-X-Name-First: Gurudeo Anand
Author-X-Name-Last: Tularam
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: An investigation into the interdependence of global water indices: a VAR analysis
Abstract:
We investigate the extent and manner of equity price interdependence among four water indices – World Water Index, S-Network Global Water index (S-Net), S&P Global Water Index (S&P) and MSCI ACWI Water Utilities Index (MSCI ACWI) using the vector autoregression (VAR) framework for the period 2004–2014. We also employ methods of Granger causalities, variance decomposition and impulse responses. We find Granger causality significance between S-Net and MSCI ACWI and S-Net and S&P indices at the 1% level of significance, suggesting that the indices are significantly linked. Further, S-Net is the most influential index amongst them in the forecast variance that can be accounted by S-Net at level of 55.75%. Our study indicates that the four water indices are interdependent and related, so the water indices are influenced by movements in the other water indices.
Journal: Applied Economics
Pages: 769-796
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205725
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205725
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Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:769-796
Template-Type: ReDIF-Article 1.0
Author-Name: Meliyanni Johar
Author-X-Name-First: Meliyanni
Author-X-Name-Last: Johar
Author-Name: Shiko Maruyama
Author-X-Name-First: Shiko
Author-X-Name-Last: Maruyama
Author-Name: Jeffrey Truong
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Truong
Title: The contribution of Western fast food to fast-growing body mass in China
Abstract:
The westernization of Asian countries has led to the rapid expansion of Western-style fast-food restaurants, which are believed to be fueling an unprecedented rise in body mass in these countries. This study tests this belief using longitudinal data from China. Exploiting the opening of a Western-style fast-food restaurant in a particular community, we conduct a transition analysis to make a more convincing causal interpretation than the standard cross-sectional or fixed-effects approach. Considering several measures of fatness, we find no robust evidence of Western fast food having a substantial effect overall, but there is some indication of effect heterogeneity.
Journal: Applied Economics
Pages: 797-811
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205726
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205726
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Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:797-811
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M. Blau
Author-X-Name-First: Benjamin M.
Author-X-Name-Last: Blau
Title: Skewness preferences, asset prices and investor sentiment
Abstract:
Prior research has found that investors have strong preferences for stocks with positive skewness. These preferences have been shown to lead to price premiums and subsequent underperformance. This study extends this growing body of literature by testing whether the underperformance of stocks with positive skewness is driven by periods of high investor sentiment. The motivation for these tests is based on a broad literature in Psychology that an individual’s mood can directly affect the individual’s subjective probability assessments. In the framework of our tests, more optimism among investors may strengthen investors’ skewness preferences. The empirical results in this study support this idea as the underperformance of positively skewed stocks is shown to be primarily driven by periods of high investor sentiment.
Journal: Applied Economics
Pages: 812-822
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205727
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205727
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Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:812-822
Template-Type: ReDIF-Article 1.0
Author-Name: Grégory Levieuge
Author-X-Name-First: Grégory
Author-X-Name-Last: Levieuge
Title: Explaining and forecasting bank loans. Good times and crisis
Abstract:
This article aims to develop a parsimonious model to explain and forecast bank loans to nonfinancial companies during calm periods as well as in situations of financial turmoil. It focuses on the French context, over a period including financial, banking and sovereign debt crises. Theoretical views and intuitions led us to gauge the marginal informational content of a large set of leading indicators in VAR and VECM models, and to investigate potential nonlinearity in credit dynamics. In accordance with firms and banks’ balance sheet effects, the growth rate of equity prices appears to be one of the most interesting leading indicator as well as a significant threshold variable for explaining regime switching. However, it appears difficult to accurately predict the right credit dynamics regimes. A simple VAR model finally performs better.
Journal: Applied Economics
Pages: 823-843
Issue: 8
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208350
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208350
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Handle: RePEc:taf:applec:v:49:y:2017:i:8:p:823-843
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Posso
Author-X-Name-First: Alberto
Author-X-Name-Last: Posso
Author-Name: Prema-chandra Athukorala
Author-X-Name-First: Prema-chandra
Author-X-Name-Last: Athukorala
Title: Microfinance and child mortality
Abstract:
Microfinance institutions (MFIs) offer targeted opportunities for the poor to generate additional income with a range of financial services including credit, insurance, savings accounts and money transfers. Aside from reducing poverty, microfinance can potentially improve health because it is the poor who are usually more constrained from health investments due to limited budgets. Furthermore, microfinancing specifically targets women, who are more likely to spend additional income on children’s well-being. Finally, several MFIs have also begun to offer health-related services, such as health education, health-care financing, clinical care, training community health workers, health micro-insurance and linkages to public and private health providers. Using a new data set, this article conducts the first multi-country study of the effect of microfinance on child mortality, the health outcome, which is most sensitive to the effects of absolute deprivation. Our findings confirm that an increase in the proportion of MFI clients in a country is significantly associated with lower under-five and infant mortality rates. We conclude that if MFIs’ educational and health services have indeed caused improvements in health outcomes at the community level, then it may be important for governments to complement these activities with similar campaigns, particularly in remote areas where MFI penetration is low.
Journal: Applied Economics
Pages: 2313-2324
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1394976
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394976
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Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2313-2324
Template-Type: ReDIF-Article 1.0
Author-Name: Minhua Yang
Author-X-Name-First: Minhua
Author-X-Name-Last: Yang
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Title: Narcissism, political tenure, financial indicators and the effectiveness of environmental regulation
Abstract:
This article explores the factors that determine the effectiveness of environmental regulation in the United States and Australia. Unlike prior literature, in which lagging performance measures (such as carbon emissions) are used, we use financial data to develop effectiveness scores and identify the determinants of effectiveness, including narcissistic behaviour, tenure of political leaders and financial indicators. Consistent with the emerging literature on environmental finance, we find that abnormal returns are associated with environmental regulation and that effectiveness is adversely affected when narcissistic leaders are in power. Our results remain robust when we control for various event windows and models.
Journal: Applied Economics
Pages: 2325-2338
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1394977
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394977
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Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2325-2338
Template-Type: ReDIF-Article 1.0
Author-Name: Ting Hu
Author-X-Name-First: Ting
Author-X-Name-Last: Hu
Author-Name: Cynthia M. Gong
Author-X-Name-First: Cynthia M.
Author-X-Name-Last: Gong
Title: Does reference point matter in the leverage–return relationship? Evidence from the US stock market
Abstract:
The leverage–return relationship is supported by inconclusive empirical evidence in terms of its sign and significance. In this study, we argue that such a puzzling relationship can be understood by extending the traditional theoretical framework in a way that captures the reference dependence characteristics of prospect theory. We postulate that a firm’s leverage position relative to its reference point (i.e. target leverage) combined with market conditions places firms in either a gain or a loss domain, thereby resulting in different leverage–return relationships. Leverage and expected equity returns generally exhibit positive and negative relationships in gain and loss domains, respectively. Three hypotheses are derived and tested using 1998–2013 empirical data from the US stock market. This article contributes to the existing literature by confirming the applicability of prospect theory in explaining expected returns in the stock market.
Journal: Applied Economics
Pages: 2339-2355
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1394978
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394978
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Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2339-2355
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Moizer
Author-X-Name-First: Jonathan
Author-X-Name-Last: Moizer
Author-Name: Sue Farrar
Author-X-Name-First: Sue
Author-X-Name-Last: Farrar
Author-Name: Mark Hyde
Author-X-Name-First: Mark
Author-X-Name-Last: Hyde
Title: UK state pension deferral incentives and sustainability
Abstract:
Pay-as-you-go state pension schemes such as that operated in the United Kingdom face growing pressures from the rising old-age dependency ratio and improvements to life expectancies. Alongside compulsory increases in the statutory retirement age, governments have used incentives to encourage workers to postpone voluntarily their exit from employment, deferring their Basic State Pension in exchange for the additional financial reward of an enhanced pension at a later point in time. The impact of pension deferral upon the sustainability of the state pension system is dependent on the interplay of short-term savings from payment delay and increased subsequent longer-term payments to pension recipients. This article presents a model that simulates the financial effect of deferral uptake on the National Insurance Fund over a 40-year projection under alternative scenarios, including current and revised post-2016 deferral incentives. The findings indicate that the recent change in enhancement rate from 10.4 per cent to 5.8 per cent will significantly impact on state pension sustainability while still providing an incentive to defer. We estimate that any reduction below 4 per cent would result in zero uptake of the deferral option, based on a rational financial choice.
Journal: Applied Economics
Pages: 2356-2368
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397850
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397850
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Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2356-2368
Template-Type: ReDIF-Article 1.0
Author-Name: Flávia Chein
Author-X-Name-First: Flávia
Author-X-Name-Last: Chein
Author-Name: Cristine Pinto
Author-X-Name-First: Cristine
Author-X-Name-Last: Pinto
Title: Credit constraint and human capital investment: an empirical analysis using Brazilian household budget survey
Abstract:
This article is a first step towards understanding the relationship between credit market imperfections and inequality of opportunity in skill formation. The main goal is to investigate the effects of the credit constraint on the optimal human capital decision, in terms of degree of schooling, taking into account the household preferences for education. Our starting point is a theoretical model of human capital investment decision with credit constraint. Following a previous model in the literature, we propose a reduced-form approach that estimates the relation between education decision and initial wealth in Brazil. Our empirical analysis is conducted using data from a Brazilian Household Budget Survey (Pesquisa de Orçamentos Familiares), for years 2002–2003 and 2008–2009. Our results point out that education decision is in fact credit constrained. The empirical results show a strong and highly significant effect of wealth on educational level of children, teenagers and adults, even controlling by education expenditures. But we find no evidence of credit constraint on high level education decision, like undergraduate and graduate levels.
Journal: Applied Economics
Pages: 2369-2385
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397851
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397851
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Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2369-2385
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Lensink
Author-X-Name-First: Robert
Author-X-Name-Last: Lensink
Author-Name: Roy Mersland
Author-X-Name-First: Roy
Author-X-Name-Last: Mersland
Author-Name: Nhung Thi Hong Vu
Author-X-Name-First: Nhung Thi Hong
Author-X-Name-Last: Vu
Author-Name: Stephen Zamore
Author-X-Name-First: Stephen
Author-X-Name-Last: Zamore
Title: Do microfinance institutions benefit from integrating financial and nonfinancial services?
Abstract:
This article examines the impact of microfinance ‘plus’ (i.e. coordinated combination of financial and nonfinancial services) on the performance of microfinance institutions (MFIs). Using a global data set of MFIs in 77 countries, we find that the provision of nonfinancial services does not harm nor improve MFIs’ financial sustainability and efficiency. The results however suggest that the provision of social services is associated with improved loan quality and greater depth of outreach.
Journal: Applied Economics
Pages: 2386-2401
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397852
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397852
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Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2386-2401
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad M. Habibpour
Author-X-Name-First: Mohammad M.
Author-X-Name-Last: Habibpour
Author-Name: Mathieu Peiffer
Author-X-Name-First: Mathieu
Author-X-Name-Last: Peiffer
Author-Name: Roland Pepermans
Author-X-Name-First: Roland
Author-X-Name-Last: Pepermans
Author-Name: Marc Jegers
Author-X-Name-First: Marc
Author-X-Name-Last: Jegers
Title: How giving affects giving: a long-term analysis of donations
Abstract:
Social preferences theories suggest that at least some people show altruistic behaviour. However, this philanthropic behaviour ranges from pure altruistic preferences to reluctant altruists. The fact that a subset of contributors has impure preferences raises questions regarding the stability of prosocial contributions. Assuming differences in other regarding preferences, we examine whether at an aggregated level monetary contributions are stable or fragile over time. We study the aggregated donations in the US from 1973 to 2013 using ARIMA and ARMAX models. The significant autoregressive and moving average coefficients in our estimations suggest that aggregated donations are highly autocorrelated. Our estimated impulse response functions indicate that aggregated donations converge to their historic mean quickly after an exogenous shock, which shows the stickiness of the inclination to donate.
Journal: Applied Economics
Pages: 2402-2413
Issue: 21
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397853
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397853
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Handle: RePEc:taf:applec:v:50:y:2018:i:21:p:2402-2413
Template-Type: ReDIF-Article 1.0
Author-Name: Chong-Uk Kim
Author-X-Name-First: Chong-Uk
Author-X-Name-Last: Kim
Author-Name: Gieyoung Lim
Author-X-Name-First: Gieyoung
Author-X-Name-Last: Lim
Title: Immigration and domestic wage: an empirical study on competition among immigrants
Abstract:
While studies on the wage effects of immigration focus on native workers, there is significantly less information on the wage effects of immigration on domestic foreign-born workers. In addition to analysing the impact of immigration on wages of native workers, in this article, we estimate the internal competition among foreign-born workers in the United States. Firstly, using data from the Current Population Survey, we find no empirical evidence supporting the substitutability of native workers for immigrants. Secondly, there is no statistical difference between skilled and unskilled immigrants on the influence of the domestic labour market outcomes. Finally, there is no internal competition among immigrants. The income of non-citizen workers mainly depends on state and national levels of economic situations, not the number of non-citizen workers available in the labour market.
Journal: Applied Economics
Pages: 3351-3358
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259751
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259751
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Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3351-3358
Template-Type: ReDIF-Article 1.0
Author-Name: Laura M. Crispin
Author-X-Name-First: Laura M.
Author-X-Name-Last: Crispin
Author-Name: Dimitrios Nikolaou
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Nikolaou
Author-Name: Zheng (Muriel) Fang
Author-X-Name-First: Zheng (Muriel)
Author-X-Name-Last: Fang
Title: Extracurricular participation and risky behaviours during high school
Abstract:
Extracurriculars may reduce risky behaviours (smoking, alcohol, marijuana use) through human and health capital accumulation, crowding out and positive peer influences but may also increase them through peer pressure. Using data from the National Education Longitudinal Study, we estimate the contemporaneous and longer term effects of extracurricular participation on 10th and 12th grade risky behaviours. Joint estimation of the participation and risky behaviour decisions, which corrects for selection into extracurriculars, shows that extracurricular activities lead to substantial reductions in the likelihood of engagement in risky behaviours, particularly for smoking and marijuana, but these effects are not persistent in the longer run.
Journal: Applied Economics
Pages: 3359-3371
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259752
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259752
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Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3359-3371
Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni S. F. Bruno
Author-X-Name-First: Giovanni S. F.
Author-X-Name-Last: Bruno
Author-Name: Misbah Choudhry Tanveer
Author-X-Name-First: Misbah
Author-X-Name-Last: Choudhry Tanveer
Author-Name: Enrico Marelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Marelli
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: The short- and long-run impacts of financial crises on youth unemployment in OECD countries
Abstract:
The impact of financial crises on the youth unemployment rate (YUR), compared to the total unemployment rate (UR), is estimated for a panel of OECD countries over the period 1981–2009, using bias-corrected dynamic panel data estimators of short- and long-run coefficients. Both YUR and UR are found highly persistent. Also, short- and long-run effects of financial crises on YUR are significantly large, respectively, some 1.9 and 1.5–1.7 times higher than the short- and long-run effects on UR. Similar results are found for the unemployment impacts of GDP growth lagged 1 year and institutional variables. These results are robust to various dynamic specifications.
Journal: Applied Economics
Pages: 3372-3394
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259753
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259753
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Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3372-3394
Template-Type: ReDIF-Article 1.0
Author-Name: L.A. Smales
Author-X-Name-First: L.A.
Author-X-Name-Last: Smales
Title: The importance of fear: investor sentiment and stock market returns
Abstract:
The presence of investor sentiment pushes asset prices away from the equilibrium level justified by underlying fundamentals. While sentiment is not directly observable, identifying appropriate proxies and, quantifying the impact of sentiment on asset prices is an important topic. Asset prices that do not appropriately reflect fundamental values may result in inefficient allocation of capital – impacting portfolio allocation decisions and the cost of capital. Utilizing a number of sentiment proxies, over the period 1990–2015, we demonstrate a strong relationship between investor sentiment and stock returns that is consistent with theoretical explanations of sentiment. We determine that implied volatility index (VIX) is the preferred measure of sentiment in terms of improving model fit and adding explanatory power. Causality tests suggest that investor fear (VIX) drives returns across firm-size and value, and also across industry. We also illustrate that firms that are more subjective to value, or face limits to arbitrage, such as small-cap stocks, or those in the business equipment (technology) or telecoms industry, are most responsive to changes investor sentiment. Finally, we demonstrate that sentiment has a greater influence on market returns during recession, when sentiment is at its lowest ebb, and this is particularly true for those stocks most susceptible to speculative demand.
Journal: Applied Economics
Pages: 3395-3421
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1259754
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1259754
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Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3395-3421
Template-Type: ReDIF-Article 1.0
Author-Name: Roger C. Y. Chen
Author-X-Name-First: Roger C. Y.
Author-X-Name-Last: Chen
Author-Name: Chen-Hsun Lee
Author-X-Name-First: Chen-Hsun
Author-X-Name-Last: Lee
Title: The influence of CSR on firm value: an application of panel smooth transition regression on Taiwan
Abstract:
Previous studies on the relationship between corporate social responsibility (CSR) and firm value generally belong to one of the two opposing schools of thought: the social impact hypothesis and the shift of focus hypothesis. This study, however, proposes that the relationship between CSR and company value is non-linear and neither wholly positive nor negative. We employed the corporate social responsibility index (CRSI) to test this hypothesis. The panel smooth transition regression (PSTR) model was used to analyse listed Taiwanese firms from 2010 to 2012 and calculate the value transition threshold of CSR, using CSRI as the transition variable. We then applied PSTR to determine whether CSRI shows a two-regime, non-linear relationship, as inferred by our model. Empirical findings show that the threshold value of CSRI is 13.082, thus, we concluded that investment in CSR does not contribute to enhancing company value until it exceeds the value transition threshold.
Journal: Applied Economics
Pages: 3422-3434
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262516
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262516
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Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3422-3434
Template-Type: ReDIF-Article 1.0
Author-Name: Huayun Jiang
Author-X-Name-First: Huayun
Author-X-Name-Last: Jiang
Author-Name: Neda Todorova
Author-X-Name-First: Neda
Author-X-Name-Last: Todorova
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Title: Dynamics of volatility transmission between the U.S. and the Chinese agricultural futures markets
Abstract:
The U.S. and China are two of the biggest players in the world agricultural market. The literature documents that volatility in the U.S. agricultural futures market spills over significantly to that of China. This article provides further insights into the spillovers from China to the U.S. as well as the time horizon and dynamics of the bidirectional spillovers through the application of a multivariate extension of the heterogeneous autoregressive model, in relation to four commodities – soybean, wheat, corn and sugar. The results confirm the existence of significant spillovers from the U.S. to China for four commodities, which are primarily generated by the shorter-term volatility components in the U.S., and provide evidence for the increasing pricing power of the Chinese market. The findings are robust against various specifications and have important investment and policy implications.
Journal: Applied Economics
Pages: 3435-3452
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262517
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262517
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Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3435-3452
Template-Type: ReDIF-Article 1.0
Author-Name: Marat Ibragimov
Author-X-Name-First: Marat
Author-X-Name-Last: Ibragimov
Author-Name: Rustam Ibragimov
Author-X-Name-First: Rustam
Author-X-Name-Last: Ibragimov
Title: Unemployment and output dynamics in CIS countries: Okun’s law revisited
Abstract:
Okun’s law is a well-known relationship between the change in the unemployment rate and output growth. The main objective of this article is to provide a rigorous econometric analysis of Okun’s law for several CIS countries using different models and theoretically justified econometric methods. The traditional approach to Okun’s law estimation using OLS regressions does not account for possible endogeneity of regressors and the implied inconsistency of the estimates obtained. These problems point out to incorrectness of applications of the standard OLS estimation techniques. Our study addresses these issues by using econometrically justified instrumental variable regression methods. The article provides the results and discussions on practical use of Okun’s relationships for evaluation of average effects of economic growth on the unemployment rate, and vice versa; importance of accounting for confidence intervals in applications of Okun’s models to economic development analysis and cross-country comparisons and evaluation of effects of crises and other structural shocks on the economies considered. We also discuss in detail the results of formal econometric tests and economic motivation for validity of instrumental variables used in the study. The formal econometric tests, together with economic arguments, allow us to determine the most appropriate Okun-type models for each of the CIS countries under consideration.
Journal: Applied Economics
Pages: 3453-3479
Issue: 34
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262519
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262519
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Handle: RePEc:taf:applec:v:49:y:2017:i:34:p:3453-3479
Template-Type: ReDIF-Article 1.0
Author-Name: Moulaye Bamba
Author-X-Name-First: Moulaye
Author-X-Name-Last: Bamba
Author-Name: Jean-Louis Combes
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Combes
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Title: The effects of fiscal consolidations on the composition of government spending
Abstract:
In response to increasing debt paths, governments often implement fiscal consolidation programs. This paper studies the impact of these programs on the composition of government spending. System-GMM estimations performed on a sample of 53 developed and emerging countries over 1980–2011 reveal that fiscal consolidations significantly reduce the government investment-to-consumption ratio, i.e. a composition effect. Robust to a wide set of tests, including when using the narrative approach to identify fiscal consolidations, this significantly stronger contraction of government investment with respect to government consumption is at work particularly when debt is high and in the low phase of the economic cycle. Therefore, in such contexts, fiscal consolidations aimed at short-run stabilization may hurt the economy in the long-run through their detrimental effect on public investment, calling for a reflection upon how they could be re-designed to allow avoiding such undesirable consequences.
Journal: Applied Economics
Pages: 1517-1532
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676392
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676392
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Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1517-1532
Template-Type: ReDIF-Article 1.0
Author-Name: Tomasz Brodzicki
Author-X-Name-First: Tomasz
Author-X-Name-Last: Brodzicki
Author-Name: Tomasz Jurkiewicz
Author-X-Name-First: Tomasz
Author-X-Name-Last: Jurkiewicz
Author-Name: Laura Márquez-Ramos
Author-X-Name-First: Laura
Author-X-Name-Last: Márquez-Ramos
Author-Name: Stanisław Umiński
Author-X-Name-First: Stanisław
Author-X-Name-Last: Umiński
Title: Patterns and determinants of the horizontal and vertical intra-industry trade of regions: panel analysis for Spain & Poland
Abstract:
Most of the empirical studies in the literature on intra-industry trade are conducted at the country level. Countries, however, differ in terms of granularity and internal heterogeneity. In the present study we empirically identify the determinants of the overall IIT as well as its horizontal and vertical components in the trade of Spanish and Polish NUTS-2 regions with all existing trade partners over the period 2005–2014. In order to obtain unbiased results, we utilize a semi-mixed effect model, estimated with the PPML method. We estimate the models jointly for all Spanish and Polish regions and then disjointly in a comparative manner – in order to identify incongruities of reaction to the various factors investigated. These include both traditional factors and a number of unorthodox factors such as regional path dependence, quality of regional institutions, the core or peripheral status of the reporting region.
Journal: Applied Economics
Pages: 1533-1552
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676871
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676871
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Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1533-1552
Template-Type: ReDIF-Article 1.0
Author-Name: Geeta Duppati
Author-X-Name-First: Geeta
Author-X-Name-Last: Duppati
Author-Name: Narendar V. Rao
Author-X-Name-First: Narendar V.
Author-X-Name-Last: Rao
Author-Name: Neha Matlani
Author-X-Name-First: Neha
Author-X-Name-Last: Matlani
Author-Name: Frank Scrimgeour
Author-X-Name-First: Frank
Author-X-Name-Last: Scrimgeour
Author-Name: Debasis Patnaik
Author-X-Name-First: Debasis
Author-X-Name-Last: Patnaik
Title: Gender diversity and firm performance: evidence from India and Singapore
Abstract:
This study investigates if gender diversity on boards is an effective driver of financial performance. For this purpose, this study choses two countries, one of which has the soft law approach (Singapore) while the other has mandatory requirements (India) on corporate boards gender diversity. By doing so, it examines if there is a comparability between the listed firms of the two countries. Our results suggest that the gender diversity has a positive and significant effect on the financial performance of the firms of both the countries. Although, the gender diversity of the two countries does not seem to affect the growth opportunities of both the countries. Further, our results indicate that the board characteristics affect the performance positively and significantly when the sample is divided into five quantiles for the firms in these two countries. These findings have implications to the managerial decision making and relevance to stewardship theory and resource dependency theory.
Journal: Applied Economics
Pages: 1553-1565
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676872
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676872
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Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1553-1565
Template-Type: ReDIF-Article 1.0
Author-Name: Belayet Hossain
Author-X-Name-First: Belayet
Author-X-Name-Last: Hossain
Title: Maternal empowerment and child malnutrition in Bangladesh
Abstract:
The study examines the importance of maternal empowerment in reducing the prevalence of child malnutrition in Bangladesh. Maternal empowerment is measured by a composite index based on four proxy variables that promote maternal empowerment. Factor analysis technique is used in constructing empowerment index. Ordered probit models are specified and estimated using national-level household survey data. Maternal empowerment is found to be the third-most important predictor of child malnutrition in Bangladesh, preceded by maternal endowment and child characteristics. Household characteristics such as partner’s level of education and household income are also associated with child malnutrition. The study has a number of policy implications to address maternal empowerment and child malnutrition. Public policy should focus on factors of maternal empowerment and investment in maternal health in order to improve the health of the next generation.
Journal: Applied Economics
Pages: 1566-1581
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676873
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676873
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Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1566-1581
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Balliew
Author-X-Name-First: Sean
Author-X-Name-Last: Balliew
Author-Name: Timothy Mathews
Author-X-Name-First: Timothy
Author-X-Name-Last: Mathews
Author-Name: Joshua C. Hall
Author-X-Name-First: Joshua C.
Author-X-Name-Last: Hall
Title: Measuring economic freedom: an alternative functional specification and subsequent ranking
Abstract:
The widely cited Economic Freedom of the World index is an aggregate measure of economic freedom calculated by using a simple arithmetic mean of scores over five sub-dimensions: (1) size of government, (2) legal structure and security of property rights, (3) access to sound money, (4) freedom to trade internationally and (5) regulation of credit, labour and business. The use of a simple arithmetic mean implicitly assumes that the different sub-dimensions are ‘perfect substitutes’. To explore the implications of this assumption, we compute an aggregate economic freedom score and ordinal ranking of countries, by taking a geometric mean of the five sub-dimensions. For this alternative specification, the marginal impact of each sub-dimension on the aggregate score is no longer independent of the other sub-dimension scores. Consequently, countries with inconsistent levels of economic freedom across sub-dimensions are ‘punished’ to a greater degree than are countries with less variability across sub-dimensions. Our alternative specification results in considerable movement in terms of country rankings. The geometric mean measure does not appear to explain economic growth as well as the arithmetic mean measure.
Journal: Applied Economics
Pages: 1582-1591
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676874
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676874
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Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1582-1591
Template-Type: ReDIF-Article 1.0
Author-Name: Jacqueline Craig
Author-X-Name-First: Jacqueline
Author-X-Name-Last: Craig
Author-Name: Charles C. Moul
Author-X-Name-First: Charles C.
Author-X-Name-Last: Moul
Author-Name: Gregory T. Niemesh
Author-X-Name-First: Gregory T.
Author-X-Name-Last: Niemesh
Title: Do menu-labelling laws translate into results? The disparate impacts on population obesity and diabetes
Abstract:
Despite their joint importance to health care costs, the nature of the relationship between obesity and diabetes is contested within the medical literature. We leverage California’s 2008 law mandating menu-labelling at restaurants to confirm that the law reduced obesity compared to the experience of counties not subject to such regulation. Despite this reduction in obesity, we find no California-specific reduction in the prevalence of diabetes and we find a significantly positive impact on the likelihood of new diabetes diagnoses. We evaluate a range of potential hypotheses that rationalize the divergent findings on obesity and diabetes.
Journal: Applied Economics
Pages: 1592-1605
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676875
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676875
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Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: J.R. Clark
Author-X-Name-First: J.R.
Author-X-Name-Last: Clark
Title: The tax-rate induced bond substitution hypothesis and the traditional textbook treatment of the relationship between tax-free and taxable bond yields
Abstract:
This empirical study posits and tests the ‘tax-rate induced bond substitution hypothesis,’ wherein the propensity for bond buyers to substitute tax-exempt municipal bonds for taxable bonds in their portfolios is hypothesized to be an increasing function of the maximum federal personal income tax rate. This substitution acts to elevate the real interest rate yield on taxable bonds while diminishing it on tax-exempt bonds, ceteris paribus. Two measures of real interest rates are included in the present analysis, ex post real interest rate and ex ante real interest rate. Empirical estimations for the 1981–2018 period provide strong support for the hypothesis. They reveal that the real interest rate yield on high-grade tax-exempt municipal bonds is a decreasing function of the maximum marginal federal personal income tax, whereas the real interest rate yield on taxable ten-year Treasury notes is an increasing function of that same tax rate. We examine the implications of this study and the information underlying it for the traditional formulaic textbook treatment of the relationship between yields on bonds whose interest rate payments are taxable versus those whose interest rate payments are tax exempt and find it is not as dependable as the textbooks would have us believe.
Journal: Applied Economics
Pages: 1606-1616
Issue: 14
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1676876
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676876
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Handle: RePEc:taf:applec:v:52:y:2020:i:14:p:1606-1616
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Akhtaruzzaman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Akhtaruzzaman
Author-Name: Christopher Hajzler
Author-X-Name-First: Christopher
Author-X-Name-Last: Hajzler
Author-Name: P. Dorian Owen
Author-X-Name-First: P. Dorian
Author-X-Name-Last: Owen
Title: Does institutional quality resolve the Lucas Paradox?
Abstract:
The Lucas Paradox observes that capital flows predominantly to relatively rich countries, contradicting the neoclassical prediction that it should flow to poorer capital-scarce countries. In an influential study, Alfaro, Kalemli-Ozcan, and Volosovych (AKV) argue that cross-country variation in institutional quality can fully explain the Paradox, contending that if institutional quality is included in regression models explaining international capital inflows, a country’s level of economic development is no longer statistically significant. We replicate AKV’s results using their cross-sectional IFS capital flow data. Motivated by the importance of conducting inference in statistically adequate models, we focus on misspecification testing of alternative functional forms of their empirical model of capital flows. We show that their resolution of the Paradox relies on inference in a misspecified model. In models that do not fail basic misspecification tests, even though institutional quality is a significant determinant of capital inflows, a country’s level of economic development also remains a significant predictor. The same conclusions are reached using an extended dataset covering more recent IFS international capital flow data, first-differenced capital stock data and additional controls.
Journal: Applied Economics
Pages: 455-474
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321840
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321840
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Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:455-474
Template-Type: ReDIF-Article 1.0
Author-Name: Chunzhou Mu
Author-X-Name-First: Chunzhou
Author-X-Name-Last: Mu
Author-Name: Richard De Abreu Lourenco
Author-X-Name-First: Richard
Author-X-Name-Last: De Abreu Lourenco
Author-Name: Kees van Gool
Author-X-Name-First: Kees
Author-X-Name-Last: van Gool
Author-Name: Jane Hall
Author-X-Name-First: Jane
Author-X-Name-Last: Hall
Title: Is low-priced primary care bad for quality? Evidence from Australian general practice
Abstract:
We examine whether patients’ perceptions of general practitioner (GP) care varies by the price paid for consultations. Australian consumer survey data from 2275 individuals were used to analyse the relationship between price and patient experience of GP care. Using both standard models for count data and a latent class model that distinguishes between patients with high- and low-quality experiences, we find no evidence that lower prices have a negative impact on patients’ perceptions of GP quality. Nevertheless, some patient characteristics such as age, gender and health status play a significant role in quality-of-care perceptions. The results show that Australian patients have not had to compromise GP quality, as expressed in terms of patient experience, when seeking low-priced care. This supports the view that there are sufficient checks and balances on the GP sector in Australia to ensure positive patient experiences even for low-cost GP consultations.
Journal: Applied Economics
Pages: 475-491
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324610
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324610
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Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:475-491
Template-Type: ReDIF-Article 1.0
Author-Name: Yan-Leung Cheung
Author-X-Name-First: Yan-Leung
Author-X-Name-Last: Cheung
Author-Name: Yin Dang
Author-X-Name-First: Yin
Author-X-Name-Last: Dang
Author-Name: Ping Jiang
Author-X-Name-First: Ping
Author-X-Name-Last: Jiang
Author-Name: Tong Lu
Author-X-Name-First: Tong
Author-X-Name-Last: Lu
Author-Name: Weiqiang Tan
Author-X-Name-First: Weiqiang
Author-X-Name-Last: Tan
Title: Does the market care about investor protection practices in China?
Abstract:
This study develops a scorecard with which to measure the investor protection practices of major listed firms in China during 2007–2010. We use time-series data to examine the relationship between the change in firm investor protection practices and market performance. Our results show that firms exhibiting improvements in investor protection practices manifest a subsequent increase in buy-and-hold abnormal returns. The results further indicate that the changes in the sub-index have different effects on a firm’s future performance. Shareholder rights to be rewarded seem to have the most significant and positive effect on a firm’s future performance for both local and international investors. Moreover, international investors pay attention to their rights to information. Our results provide evidence in support of the notion that the market does care about firm’s investor protection practices. The findings are robust to other measures of firm performance.
Journal: Applied Economics
Pages: 492-509
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324612
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324612
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Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:492-509
Template-Type: ReDIF-Article 1.0
Author-Name: Anirban Sanyal
Author-X-Name-First: Anirban
Author-X-Name-Last: Sanyal
Author-Name: Abhiman Das
Author-X-Name-First: Abhiman
Author-X-Name-Last: Das
Title: Nowcasting sales growth of manufacturing companies in India
Abstract:
The performance of private corporate sector is used as an important demand indicator for monetary policy making. As these data are received with a lag, assessing and monitoring of corporate sales on a real-time basis poses a significant challenge to policy makers in India. In this context, this article attempts to nowcast quarterly sales growth of Indian manufacturing companies and GDP growth of India using dynamic factor modelling framework. A multiple-level framework through turning point analysis and elastic net structure is used to overcome the overfitting problem during variable selection. Empirical results show improvement in forecast accuracy for one quarter ahead nowcast using 3-factor and 4-factor models over the benchmark model. However, absolute dominance of 3-factor models over 4-factor models was not established. As such, the article has proposed a forecast combination technique to nowcast sales growth of manufacturing companies in India.
Journal: Applied Economics
Pages: 510-526
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324613
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324613
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Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:510-526
Template-Type: ReDIF-Article 1.0
Author-Name: Sasiwimon Warunsiri Paweenawat
Author-X-Name-First: Sasiwimon Warunsiri
Author-X-Name-Last: Paweenawat
Author-Name: Robert McNown
Author-X-Name-First: Robert
Author-X-Name-Last: McNown
Title: A synthetic cohort analysis of female labour supply: the case of Thailand
Abstract:
This study analyzes trends and patterns in employment, hours worked, and women’s wages for Thai women, and relations among these variables in models of female labour supply. Labour supply behaviour of Thai women is investigated with synthetic cohort data defined by age, year of birth, and level of educational attainment, constructed from annual labour force surveys from 1985 to 2004. According to pseudo-panel estimates, wage increases lead to a reduction in hours worked, but also an increase in the employment/population ratio, with elasticity estimates that are robust across a variety of specifications. Estimates based on disaggregation by marital status show that marriage provides protection against wage decreases, allowing married women greater choice between hours of work and other household activities. Alternative disaggregations find that younger cohorts of women and those with the highest education show the greatest (positive) response of the employment rate to wage changes, leading to a future Thai labour force with more women and higher educational attainment.
Journal: Applied Economics
Pages: 527-544
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324614
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324614
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Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:527-544
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Baldin
Author-X-Name-First: Andrea
Author-X-Name-Last: Baldin
Author-Name: Trine Bille
Author-X-Name-First: Trine
Author-X-Name-Last: Bille
Title: Modelling preference heterogeneity for theatre tickets: a discrete choice modelling approach on Royal Danish Theatre booking data
Abstract:
This article analyses the behavioural choice for theatre tickets using a rich data set for 2010–2013 from the sale system of the Royal Danish National Theatre. A consumer who decides to attend a theatre production faces multiple sources of price variation that involves a choice by the consumer among different ticket alternatives. Three modelling approaches are proposed in order to model ticket purchases: conditional logit with socio-demographic characteristics, nested logit and latent class. These models allow us explicitly to take into account consumers’ preference heterogeneity with respect to the attributes associated with each ticket alternative (quality of the seat and day of the performance). In addition, the willingness to pay of choice attributes is estimated. Final results suggest that customers’ characteristics in terms of age and frequency of theatre attendance characterize different patterns of behaviour in the choice of theatre ticket.
Journal: Applied Economics
Pages: 545-558
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1335386
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1335386
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Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:545-558
Template-Type: ReDIF-Article 1.0
Author-Name: Hela Namouri
Author-X-Name-First: Hela
Author-X-Name-Last: Namouri
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Néjib Hachicha
Author-X-Name-First: Néjib
Author-X-Name-Last: Hachicha
Title: Threshold effect in the relationship between investor sentiment and stock market returns: a PSTR specification
Abstract:
This article verifies whether the hypothesis of heterogeneous agent modelling and the behavioural heterogeneity framework can reproduce recent stylized facts regarding stock markets (e.g. the 1987 crash, internet bubble, and subprime crisis). To this end, we investigate the relationship between investor sentiment and stock market returns for the G7 countries from June 1987 to February 2014. We propose an empirical non-linear panel data specification based on the panel switching transition model to capture the investor sentiment-stock return relationship, while enabling investor sentiment to act asymmetrically, non-linearly, and time varyingly according to the market state and investor attitude towards risk. Our findings are twofold. First, we show that the hypotheses of efficiency, rationality, and representative agent do not hold in reproducing stock market dynamics. Second, investor sentiment affects stock returns significantly and non-linearly, but its effects vary with the market conditions. Indeed, the market appears predominated by fundamental investors in the first regime. In the second regime, investor sentiment effect is positively activated, increasing stock returns; however, when their overconfidence sentiment exceeds some threshold, this effect becomes inverse in the third regime for a high threshold level of market confidence and investor over-optimism.
Journal: Applied Economics
Pages: 559-573
Issue: 5
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1335387
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1335387
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Handle: RePEc:taf:applec:v:50:y:2018:i:5:p:559-573
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Pierre Fraichot
Author-X-Name-First: Jean Pierre
Author-X-Name-Last: Fraichot
Title: Study of the effect of a Financial Transaction Tax on the corporate cost of capital
Abstract:
We study the impact of a Financial Transaction Tax (FTT or Tobin Tax) on the corporate cost of capital. We consider the results on the impact of transaction costs on implied volatility and then use the utility maximization of a market-maker and its asymptotic solution. The FTT impact on volatility, in highly liquid equity option markets, is within two decimals (‘the tick value’) and is insignificant. The volatility impact is considerable for illiquid option markets especially long-dated equity options, used for the hedging of credit default swaps (CDS). The credit spread increase is computed using a structural model, and amounts between 30 and 60 basis points (b.p). per annum, for 5–20 year maturities, and a volatility level of 30%. The impact decreases with the corporation leverage ratio. We calibrate from the CDS market the implied volatility for six European corporations and find an increase in spreads by up to 60%. For a corporation with a 343 b.p. 5-year CDS spread, the increase amounts to 174 b.p. On the basis of this sample, the impact we find is between 5 and 20 times higher than the one computed in the study of Lendvai et al. which has been used by European Union authorities to assess the impact on the cost of capital.
Journal: Applied Economics
Pages: 5951-5961
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1363864
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363864
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Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5951-5961
Template-Type: ReDIF-Article 1.0
Author-Name: Diego Víctor de Mingo-López
Author-X-Name-First: Diego Víctor
Author-X-Name-Last: de Mingo-López
Author-Name: Juan Carlos Matallín-Sáez
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Matallín-Sáez
Title: Investing in mutual funds: the determinants of implied and actual net cash flows
Abstract:
Estimating the fund investors’ demand plays an important role in the mutual fund management. In this line, mutual fund demand can be measured as the total net cash flows experienced by the fund during a period. Due to a lack of the data for inflows and outflows in some countries and databases, many authors estimate the net cash flows using fund size and return information. This rough measure, although being a good approximation, implicitly assumes an error in its calculation. For a sample of 2985 US open-end funds, we find evidence that estimating this implied fund flows, the error generated is higher for smaller funds, funds with higher returns, and for those experiencing higher levels of inflows or outflows. This lack of precision leads to a distortion in the estimation of the effect of some determinants on the mutual fund demand, especially when longer periods are considered when constructing the net cash flows.
Journal: Applied Economics
Pages: 5962-5970
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1366641
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1366641
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Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5962-5970
Template-Type: ReDIF-Article 1.0
Author-Name: Johann Fuchs
Author-X-Name-First: Johann
Author-X-Name-Last: Fuchs
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Long-term unemployment and labour force participation: a decomposition of unemployment to test for the discouragement and added worker hypotheses
Abstract:
We sharpen tests for ‘discouragement’ and ‘added worker’ effects by splitting the explanatory variable – the unemployment rate – into a short-term component and a long-term component. While short-term unemployment (STU) might not result in additional workers on a large scale, long-term unemployment (LTU) reduces household income more, increasing the need for additional income. On the other hand, it may discourage older workers for psychological and sociological reasons. Applying our model to the German labour market, these hypotheses could be confirmed. Even for men, about whom only a few empirical studies on this issue are available, distinguishing between STU and LTU reveals added worker as well as discouragement effects.
Journal: Applied Economics
Pages: 5971-5982
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1368991
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368991
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Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5971-5982
Template-Type: ReDIF-Article 1.0
Author-Name: Gaetano Lisi
Author-X-Name-First: Gaetano
Author-X-Name-Last: Lisi
Title: Homeownership and new entrepreneurs: first empirical evidence of a bidirectional interaction
Abstract:
Literature linking housing and professional choices focuses on the supply side of the labour market (the search for a job as employee), thus considering the unemployment rate as the only measure of labour market outcomes. Indeed, the usually neglected link between homeownership and entrepreneurship is equally important for assessing labour market performance. This empirical article represents one of the first attempts to test the interplay between homeownership and (new) entrepreneurs. Effectively, using a panel data analysis in Italy, we find a first empirical evidence of a positive and bidirectional interaction between homeownership and new entrepreneurs (precisely, small businesses and the self-employed).
Journal: Applied Economics
Pages: 5983-5991
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1368996
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368996
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Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5983-5991
Template-Type: ReDIF-Article 1.0
Author-Name: Ramzi Ben-Abdallah
Author-X-Name-First: Ramzi
Author-X-Name-Last: Ben-Abdallah
Author-Name: Michèle Breton
Author-X-Name-First: Michèle
Author-X-Name-Last: Breton
Title: An ex-post analysis of the CME Group’s solution to the 5-year gap issue
Abstract:
In early 2001, the US Department of the Treasury suspended the issuance of 30-year bonds, and then resumed issuing its long paper in early 2006. As a result, there was a 5-year gap in the baskets deliverable into US T-Bond futures contracts expiring before 2016. In 2013, the CME Group raised the issue that grades contending for cheapest-to-deliver status were becoming significantly isolated from the rest of the basket because of this maturity gap. The aim of this article is to provide an ex-post assessment of the approach chosen by the CME Group to address this so-called ‘5-year gap issue’ and to compare its efficiency with that of an alternative solution that was not considered at the time.
Journal: Applied Economics
Pages: 5992-6002
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1368997
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368997
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Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:5992-6002
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Ventosa-Santaulària
Author-X-Name-First: Daniel
Author-X-Name-Last: Ventosa-Santaulària
Author-Name: Manuel Gómez-Zaldívar
Author-X-Name-First: Manuel
Author-X-Name-Last: Gómez-Zaldívar
Author-Name: Pedro Chávez
Author-X-Name-First: Pedro
Author-X-Name-Last: Chávez
Title: On the persistence of prices in Mexico: a fractional integration approach
Abstract:
A relevant yet often overlooked characteristic of the inflation rate is its mean-reverting property. If a series has this feature, shocks eventually dissipate, whereas if it does not, they have a permanent effect on the series. The usual I(1) versus I(0) dichotomy in time-series econometrics goes only so far towards disentangling this issue. By employing a methodology that estimates the persistence of inflation by allowing (i) fractional integration and (ii) persistence and level shifts in the series, we aim to define whether it is stationary and/or mean reverting and, if so, during which periods. The results of our analysis for the period 1987–2015 are threefold: firstly, inflation in the eighties and nineties should be seen as a highly persistent yet mean-reverting process (not a random walk); secondly, inflation remained mean reverting, though became a short-memory (less persistent) process around the date of the implementation of the inflation-targeting framework of 2001; thirdly, during the later phase, the level of inflation also decreased and is now within the inflation target range set by Banco de México, namely 3 per cent with an interval of ±1 percentage point.
Journal: Applied Economics
Pages: 6014-6023
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1371841
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1371841
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Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:6014-6023
Template-Type: ReDIF-Article 1.0
Author-Name: Deniz Dilan Karaman Örsal
Author-X-Name-First: Deniz Dilan
Author-X-Name-Last: Karaman Örsal
Title: Analysing money demand relation for OECD countries using common factors
Abstract:
This article investigates the existence of a long-run money demand relation for a panel data consisting of 13 OECD countries. The analysis is based on the most recent data. The existence of a long-run money demand relation is tested with two new meta-analytic panel cointegrating rank tests which are robust to cross-sectional dependence. Cross-sectional dependency in the data generating process is modelled by unobserved common factors. The observed data are decomposed into idiosyncratic and common components, and these two components are analysed separately to find out the driving forces of the long-run stationary relationship. The evidence shows that the long-run money demand relation is driven by the cross-unit cointegration. Finally, the long-run relation is estimated by taking the common factors into account.
Journal: Applied Economics
Pages: 6003-6013
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1371842
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1371842
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Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:6003-6013
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Applied Economics
Pages: ebi-ebi
Issue: 60
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1385986
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1385986
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Handle: RePEc:taf:applec:v:49:y:2017:i:60:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Woo-Sik Sohn
Author-X-Name-First: Woo-Sik
Author-X-Name-Last: Sohn
Title: Discount rate and the social cost of carbon dioxide: a Korean forecast
Abstract:
This paper is to forecast the Korean long-term social discount rate of carbon dioxide (SDRC) and the social cost of carbon dioxide (SCC). It is estimated using the Ramsey function, savings behavior, socio-economic standard, exponential function, expected value and so on. Our findings are as follows. First, the economics of future climate change can be determined using the SDRC. Second, the SDRC declines over time. Finally, forecast shows that the Korean SDRC declines over time and the Korean SCC increases over time.
Journal: Applied Economics
Pages: 3436-3450
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581907
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581907
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Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3436-3450
Template-Type: ReDIF-Article 1.0
Author-Name: Kayuna Nakajima
Author-X-Name-First: Kayuna
Author-X-Name-Last: Nakajima
Title: Homesickness and repeated migration
Abstract:
This paper presents a dynamic structural model of migration that is designed to help explain the migration behaviour of undocumented Mexican immigrants in the US. Its key feature – which I call ‘homesickness’ – is a duration-dependent disutility from living abroad that keeps increasing while a migrant stays abroad and can be reset to zero only by returning to their home country. I estimate the model using data primarily from the Mexican Migration Project Survey and find that the model is capable of explaining, among other things, the fact that: (i) a non-negligible number of Mexican immigrants in the US return home after earning very little; (ii) these ‘unsuccessful’ immigrants are more likely to re-enter the US at a later date; and (iii) such ‘unsuccessful’ returns are more prevalent among immigrants who left their wives behind in Mexico. These facts are not easily reconciled with existing models of migration that do not feature homesickness.
Journal: Applied Economics
Pages: 3451-3464
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581908
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581908
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Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3451-3464
Template-Type: ReDIF-Article 1.0
Author-Name: Shujie Yao
Author-X-Name-First: Shujie
Author-X-Name-Last: Yao
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Author-Name: Feng Wang
Author-X-Name-First: Feng
Author-X-Name-Last: Wang
Author-Name: Jinghua Ou
Author-X-Name-First: Jinghua
Author-X-Name-Last: Ou
Title: Regional economic growth and the role of high-speed rail in China
Abstract:
Rapid development of High-speed railways (HSR) in China has attracted serious research interest. This paper proposes an endogenous economic growth model to explain how and why HSR may lead to faster economic growth and regional convergence in China using data from 285 cities in 2010–2014. TSLS estimation suggests that HSR has a powerful impact on urban economic growth and regional convergence. It suggests that HSR was a potent driver responsible for the sustainable and steady economic expansion of the Chinese regions in the aftermath of the world financial crisis.
Journal: Applied Economics
Pages: 3465-3479
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581910
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581910
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Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3465-3479
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Croce
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Croce
Author-Name: Andrea Ricci
Author-X-Name-First: Andrea
Author-X-Name-Last: Ricci
Author-Name: Giuliana Tesauro
Author-X-Name-First: Giuliana
Author-X-Name-Last: Tesauro
Title: Pensions reforms, workforce ageing and firm-provided welfare
Abstract:
This paper investigates the impact of an exogenous increase in the legal retirement age on the firms’ propensity to provide welfare services voluntarily to their employees. To this purpose we exploit a unique information derived from the Rilevazione su Imprese e Lavoro (RIL), a survey conducted in 2015 on a large and representative sample of Italian firms. Applying different regression models we show that firms which were forced to give up previously planned hirings because of the Law 201/2011 (the so-called ‘Fornero pension reform’), increased the probability of providing welfare services at workplace. By referring to the sociological, human resource management and economic literature we then argue that a sudden increase in the legal retirement age may motivate the employers to establish welfare schemes as a way to cope with an ageing workforce. Our findings also hold when propensity score matching methods are used in order to control for sample selection issues.
Journal: Applied Economics
Pages: 3480-3497
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581911
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581911
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Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3480-3497
Template-Type: ReDIF-Article 1.0
Author-Name: Mary Doidge
Author-X-Name-First: Mary
Author-X-Name-Last: Doidge
Author-Name: Hongli Feng
Author-X-Name-First: Hongli
Author-X-Name-Last: Feng
Author-Name: David A. Hennessy
Author-X-Name-First: David A.
Author-X-Name-Last: Hennessy
Title: Rationality of weather predictions and insurance purchases: testing the gambler’s and hot hand fallacies
Abstract:
Deviations from the rational behaviour assumed in many economic models have been found in a variety of settings. Two such deviations, the gambler’s and hot hand fallacies have been found in lab settings, as well as in consequential real-world decisions. Previous economic experiments have shown that the behaviour of professionals can differ from that of the general population. In this paper, we use data from two experiments conducted with a particular group of professionals who make yearly high-stakes decisions in the face of uncertain weather and market conditions: agricultural producers. In the experiments, participants were asked to make predictions about the coming year’s weather and market conditions and make decisions in a familiar decision context. Results indicate evidence of the gambler’s fallacy, such that participants were less likely to predict a good outcome if the previous outcome(s) were good. We also observe that participants were more likely to gamble if a previous gamble was successful, but find no impact on two successful gambles. These combined results indicate that even professionals with many years of experience can exhibit behaviours that deviate from those assumed by classical models.
Journal: Applied Economics
Pages: 3498-3515
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581913
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581913
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Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3498-3515
Template-Type: ReDIF-Article 1.0
Author-Name: Chunyang Wang
Author-X-Name-First: Chunyang
Author-X-Name-Last: Wang
Author-Name: Haiyang Zhang
Author-X-Name-First: Haiyang
Author-X-Name-Last: Zhang
Author-Name: Liping Lu
Author-X-Name-First: Liping
Author-X-Name-Last: Lu
Author-Name: Xirui Wang
Author-X-Name-First: Xirui
Author-X-Name-Last: Wang
Author-Name: Ziyu Song
Author-X-Name-First: Ziyu
Author-X-Name-Last: Song
Title: Pollution and corporate valuation: evidence from China
Abstract:
Environmental pollution brings severe challenges in the context of a high growing economy of China. Pollution events bring serious ecological cost to the environment, direct costs from sanction, and reputational damage to the listed firms. We study the market reaction to 145 pollution events in China during Jan 2008 and Feb 2015. We find that the 2-day cumulative abnormal returns (CARs) of pollution events are significantly negative, which shows the disciplining effect of the stock market on the listed firms. In addition, pollution events with sanctions have lower CARs than otherwise, which are heterogeneous among different sanction types such as shutting down, fines and rectification. Finally, water pollution has lower CARs than other pollution types. We find that direct economic loss is an important reason for the negative market reactions to pollution events.
Journal: Applied Economics
Pages: 3516-3530
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581915
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581915
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Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3516-3530
Template-Type: ReDIF-Article 1.0
Author-Name: Pirmin Fessler
Author-X-Name-First: Pirmin
Author-X-Name-Last: Fessler
Author-Name: Alyssa Schneebaum
Author-X-Name-First: Alyssa
Author-X-Name-Last: Schneebaum
Title: The educational and labor market returns to preschool attendance in Austria
Abstract:
Preschool attendance is widely recognized as a key ingredient for later socioeconomic success, mothers’ labor market participation, and leveling the playing field for children from disadvantaged backgrounds. However, the empirical evidence for these claims is still relatively scarce, particularly in Europe. Using data from the 2011 Austrian European Union Statistics of Income and Living Conditions (EU-SILC), we contribute to this literature by studying the effects of having attended preschool for the adult Austrian population. We find strong and positive effects of preschool attendance on later educational attainment, the probability of working full time, hourly wages, and the probability that the mother is in the labor market. Full time workers at the bottom and the top of the distribution benefit less than those in the middle. Women in particular benefit more in terms of years of schooling and the probability of working full time. Other disadvantaged groups (second generation migrants; people with less educated parents) also often benefit more in terms of education and work.
Journal: Applied Economics
Pages: 3531-3550
Issue: 32
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584368
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584368
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Handle: RePEc:taf:applec:v:51:y:2019:i:32:p:3531-3550
Template-Type: ReDIF-Article 1.0
Author-Name: Pu-yan Nie
Author-X-Name-First: Pu-yan
Author-X-Name-Last: Nie
Author-Name: Chan Wang
Author-X-Name-First: Chan
Author-X-Name-Last: Wang
Title: An analysis of cost-reduction innovation under capacity constrained inputs
Abstract:
This article focuses on duopoly cost-reduction innovation with the upstream input subjected to capacity constraints. By two-stage duopoly model, some interesting conclusions are achieved. Firstly, the higher efficiency firms invest the less in cost-reduction innovation and require the fewer resources under capacity constraints. Therefore, lower efficiency firms launch the lower price strategies. To our surprise, lower efficiency firms seem to be more aggressive both in innovation and in outputs. Secondly, symmetric firms’ innovation decreases with the total resources while asymmetric firms’ innovation increases with the total capacity. Finally, innovation gap decreases with both the total capacity and the degree of substitutability.
Journal: Applied Economics
Pages: 564-576
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1497850
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497850
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Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:564-576
Template-Type: ReDIF-Article 1.0
Author-Name: Yared Seid
Author-X-Name-First: Yared
Author-X-Name-Last: Seid
Title: The impact of learning first in mother tongue: evidence from a natural experiment in Ethiopia
Abstract:
This study explores the impact of mother-tongue instruction in early grades on the performance of students later after they switch to English instruction. Students in Ethiopia switch to English-instruction classrooms either in grade 5, 7, or 9 depending on the state in which they attend school. Typically, this switch is from mother-tongue to English instruction for language-majority students and from second-language to English instruction for language-minority students. As a result, the intensity of the impact of the switch to English instruction varies by language group. Exploiting these two plausibly exogenous sources of variations across states and language groups and using data from a school survey, we estimate triple-differences model. The estimate from our preferred specification suggests that learning first in mother tongue (in grades $$1 - 4$$1−4) improves mathematics tests scores later (in grade 5) by 0.159 standard deviations, suggesting students taught first in their mother tongue learn in English better after they switch to English-instruction classrooms.
Journal: Applied Economics
Pages: 577-593
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1497852
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497852
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Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:577-593
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Larcher
Author-X-Name-First: Kevin
Author-X-Name-Last: Larcher
Author-Name: Jaebeom Kim
Author-X-Name-First: Jaebeom
Author-X-Name-Last: Kim
Author-Name: Youngju Kim
Author-X-Name-First: Youngju
Author-X-Name-Last: Kim
Title: Uncertainty shocks and asymmetric dynamics in Korea: a non-linear approach
Abstract:
This study investigates the impact of uncertainty shocks on macroeconomic activity in Korea. For this purpose, a Smooth Transition VAR model is employed to document the state-dependent dynamics of two distinct types of uncertainty shocks, namely, financial market based and news-based. When non-linearity is allowed to play a role in our model, quantitatively very different asymmetric dynamics are observed. Following inflation targeting, the responses tend to be smoother and less pronounced. Our empirical results support the view that the link between uncertainty and macroeconomic activity is clear over both recessions and expansions. Furthermore, the impact of uncertainty shocks is more pronounced when economic activity is depressed especially after shocks originate from the financial market, and not from news-based policy uncertainty in Korea.
Journal: Applied Economics
Pages: 594-610
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1502869
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502869
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Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:594-610
Template-Type: ReDIF-Article 1.0
Author-Name: Denis Yongmin Joe
Author-X-Name-First: Denis Yongmin
Author-X-Name-Last: Joe
Author-Name: Dukhee Jung
Author-X-Name-First: Dukhee
Author-X-Name-Last: Jung
Author-Name: Frederick Dongchuhl Oh
Author-X-Name-First: Frederick Dongchuhl
Author-X-Name-Last: Oh
Title: Owner-managers and firm performance during the asian and global financial crises: evidence from Korea
Abstract:
We examine the performance of the Korean owner-managers during the 1997−1998 Asian financial crisis and the 2008−2009 global financial crisis to establish whether they overcome the unexpected exterior shocks better than employed managers. We find that the owner-managers record a significantly greater performance during the crises, and especially during the latter period. Moreover, our results suggest that such a tendency comes from the owner-managers’ superior investment decisions. Our paper thus highlights the role of owner-managers by studying their performance during the Korean economic crisis periods. (JEL G01, G32, G34)
Journal: Applied Economics
Pages: 611-623
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1502870
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502870
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Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:611-623
Template-Type: ReDIF-Article 1.0
Author-Name: Uche Eseosa Ekhator-Mobayode
Author-X-Name-First: Uche Eseosa
Author-X-Name-Last: Ekhator-Mobayode
Author-Name: Abraham Abebe Asfaw
Author-X-Name-First: Abraham
Author-X-Name-Last: Abebe Asfaw
Title: The child health effects of terrorism: evidence from the Boko Haram Insurgency in Nigeria
Abstract:
This study examines the effect of terrorism on height-for-age z-scores, weight-for-age z-scores, weight-for-height z-scores, stunting, and wasting. Using the Boko Haram Insurgency, it compares outcomes in Boko Haram high-active and low-active areas. A difference-in-difference and regression model identifies the extensive and intensive margin effects respectively. The study uses data from the Nigeria Demographic and Health Survey and the Global Terrorism Database. The results suggest that the Boko Haram Insurgency reduces weight-for-age and weight-for-height z-scores and increases the probability of wasting. The evidence suggests that policies targeting healthcare services may mitigate the long-term impacts of the Boko Haram Insurgency on human capital production.
Journal: Applied Economics
Pages: 624-638
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1502871
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502871
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Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:624-638
Template-Type: ReDIF-Article 1.0
Author-Name: Paul McNamee
Author-X-Name-First: Paul
Author-X-Name-Last: McNamee
Author-Name: Silvia Mendolia
Author-X-Name-First: Silvia
Author-X-Name-Last: Mendolia
Title: Changes in health-related quality of life: a compensating income variation approach
Abstract:
This paper investigates the relationship between negative changes in health and life satisfaction, using a sample from the Household, Income and Labour Dynamics of Australia Survey. We use panel data models and estimate the life satisfaction impact of several different changes in health status to calculate the Compensating Income Variation (CIV) of them. Our work innovates with respect to the existing literature by using a more robust CIV method that takes account of the potential measurement error in income. Further, we produce the first set of monetary values for health losses using SF-6D utility values, one of the main measures used to estimate and value health change for economic evaluation. We show that negative changes in SF-6D are significantly associated with a reduction in life satisfaction, and the starting point matters: a drop of 0.1 in SF-6D score is associated with a decrease of 0.12 points in life satisfaction if the starting utility value is 0.8, but the effect is 100% higher if the SF-6D starting point is 0.7. More generally, we find that a 0.1 deterioration in SF-6D has a strong association with life satisfaction and that the CIV value is substantial (over US$ 120,000).
Journal: Applied Economics
Pages: 639-650
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1504160
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1504160
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Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:639-650
Template-Type: ReDIF-Article 1.0
Author-Name: Marcello Miccoli
Author-X-Name-First: Marcello
Author-X-Name-Last: Miccoli
Author-Name: Stefano Neri
Author-X-Name-First: Stefano
Author-X-Name-Last: Neri
Title: Inflation surprises and inflation expectations in the Euro area
Abstract:
In the second half of 2012, euro area inflation started declining and reached historical lows at the end of 2014. Market-based measures of inflation expectations also declined to unprecedented levels. During this disinflationary period, inflation releases have often surprised analysts on the downside. We provide evidence that inflation ‘surprises’ have significant effects on inflation expectations. The sensitivity of inflation expectations to the surprises, which has varied over time, disappeared after the introduction of the Asset Purchase Programme by the European Central Bank.
Journal: Applied Economics
Pages: 651-662
Issue: 6
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1506085
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1506085
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Handle: RePEc:taf:applec:v:51:y:2019:i:6:p:651-662
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Khang
Author-X-Name-First: Kenneth
Author-X-Name-Last: Khang
Author-Name: Steven Byers
Author-X-Name-First: Steven
Author-X-Name-Last: Byers
Title: The effect of lender and loan type on a borrowing firm’s equity return
Abstract:
Past empirical studies appear to support the idea that banks and finance companies do not differ in their ability to resolve adverse selection problems associated with issuing new debt. In this article, we find there is a difference. More specifically, using an event study we find larger abnormal returns for secured loan disclosures to lower quality borrowers when the lender is a finance company versus a bank. This suggests the market views finance companies as more effective than banks in evaluating/monitoring lower quality borrowers obtaining secured loans. We posit this is due to finance companies’ greater expertise in this type of lending, resulting from specialization. Our findings extend the literature on how lender identity can influence signals about firm value from loan disclosures. Our results also support recent findings that positive abnormal returns to borrowing firms may not be a general feature across the loan population, but may be restricted to smaller, lower quality borrowers. Finally, we are the first to provide evidence that the market takes loan type into account, not just lender and borrower type, when considering the information embedded in loan disclosures.
Journal: Applied Economics
Pages: 4099-4115
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276272
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276272
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Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4099-4115
Template-Type: ReDIF-Article 1.0
Author-Name: Islam Hassouneh
Author-X-Name-First: Islam
Author-X-Name-Last: Hassouneh
Author-Name: Teresa Serra
Author-X-Name-First: Teresa
Author-X-Name-Last: Serra
Author-Name: Štefan Bojnec
Author-X-Name-First: Štefan
Author-X-Name-Last: Bojnec
Author-Name: José M. Gil
Author-X-Name-First: José M.
Author-X-Name-Last: Gil
Title: Modelling price transmission and volatility spillover in the Slovenian wheat market
Abstract:
Interdependence between first and second moments of producer and consumer wheat prices in Slovenia is assessed, in light of the recent major historical events that the country has undergone, as well as the recent rumours of cartel agreements between millers causing a decline in farm-gate prices, while leaving consumer prices untouched. A threshold vector error correction and multivariate generalized autoregressive conditional heteroscedasticity model with exogenous variables is applied. Results indicate that price-level adjustments mainly favour retailers by increasing their marketing margins. Important second-moment interactions are also identified. Increases in international wheat stocks reduce producer prices, while higher interest rates increase their instability.
Journal: Applied Economics
Pages: 4116-4126
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276273
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276273
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Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4116-4126
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Cook
Author-X-Name-First: Jonathan
Author-X-Name-Last: Cook
Title: Estimating the portion of technical analysts in a market
Abstract:
This article presents structural estimates of the portion of technical analysts in six markets. I find that the portion of technical analysts in the U.S. equity market has been decreasing since the 1970s. A simple asset pricing model predicts that both risk and return are increasing in the portion of technical analysts. This prediction is confirmed across stock market indexes for six countries.
Journal: Applied Economics
Pages: 4127-4137
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276274
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276274
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Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4127-4137
Template-Type: ReDIF-Article 1.0
Author-Name: Devon Gorry
Author-X-Name-First: Devon
Author-X-Name-Last: Gorry
Author-Name: Diana W. Thomas
Author-X-Name-First: Diana W.
Author-X-Name-Last: Thomas
Title: Regulation and the cost of childcare
Abstract:
Female labour market choices depend on the availability, affordability and quality of childcare. In this article, we evaluate different regulatory measures and their effect on both the quality and the cost of childcare. First, we analyse data on regulations and costs to estimate the effect of regulatory measures on the cost of childcare. Next, we summarize the existing literature on the effect of regulation on childcare quality. We find that regulation intended to improve quality often focuses on easily observable measures of the care environment that do not necessarily affect the quality of care but that do increase the cost. Thus, we find that the regulatory environment could be improved by eliminating costly measures that do not affect quality of care.
Journal: Applied Economics
Pages: 4138-4147
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276275
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276275
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Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4138-4147
Template-Type: ReDIF-Article 1.0
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Muhammad Azeem Qureshi
Author-X-Name-First: Muhammad Azeem
Author-X-Name-Last: Qureshi
Title: The impact of financial liberalization on capital structure adjustment in Pakistan: a doubly censored modelling
Abstract:
The purpose of the study is to explain adjustment rate towards target capital structure of Pakistani nonfinancial listed firms and to investigate the impact of financial liberalization (FL) on capital structure adjustment rate. We control for the unobserved heterogeneity and the fractional nature of adjustment rate by applying an unbiased dynamic panel fractional estimator on an unbalanced panel data of Pakistani nonfinancial firms listed during 1972–2010. We find that these firms adjust at an annual rate of 24–51% to reach their capital structure targets. We argue that in order to optimize the benefits of FL the government should strengthen financial as well as judicial institutions to enforce the creditors’ rights that will enable access to more options to Pakistani firms to raise cheaper external financing.
Journal: Applied Economics
Pages: 4148-4160
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276276
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276276
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Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4148-4160
Template-Type: ReDIF-Article 1.0
Author-Name: Bernardino Benito
Author-X-Name-First: Bernardino
Author-X-Name-Last: Benito
Author-Name: María-Dolores Guillamón
Author-X-Name-First: María-Dolores
Author-X-Name-Last: Guillamón
Author-Name: Ana-María Ríos
Author-X-Name-First: Ana-María
Author-X-Name-Last: Ríos
Title: The electoral budget cycle on municipal waste collection expenditure
Abstract:
This article analyses the determinants of municipal waste collection expenditure, specifically the effects of electoral cycles on municipal waste collection expenditure. We use a database with information on Spanish municipalities with more than 1000 inhabitants for the period 2002–2011. Our results reveal that incumbents adopt an opportunistic behaviour, increasing spending on waste in the preelection year and reducing it in the election and post-election years. Therefore, we confirm an electoral budget cycle on waste collection expenditures in Spain. Additionally, we find that the levels of income, unemployment and upper-level governments’ transfers have a positive impact on waste collection spending. Finally, population density, level of urbanization, average age of the population of the municipality and less fragmented governments negatively influence waste collection spending.
Journal: Applied Economics
Pages: 4161-4179
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276278
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276278
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Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4161-4179
Template-Type: ReDIF-Article 1.0
Author-Name: Dooyeon Cho
Author-X-Name-First: Dooyeon
Author-X-Name-Last: Cho
Author-Name: Dong-Eun Rhee
Author-X-Name-First: Dong-Eun
Author-X-Name-Last: Rhee
Title: Non-linear adjustments on the excess sensitivity of consumption with liquidity constraints
Abstract:
This article investigates the role of domestic credit markets in explaining the excess sensitivity of private consumption to disposable income using heterogeneous panel data of 19 OECD countries over the last two decades. We find that the degree of the excess sensitivity has decreased as the liquidity constraints of households have been alleviated: the estimated time-varying coefficients for the marginal propensity to consume vary between 0.16 for the countries with low liquidity constraints and 0.38 for those with high liquidity constraints. We also provide evidence that the excess sensitivity has been more prominent after the global financial crisis in some advanced countries, such as Japan, Spain, and the United States, where sharp deleveraging of households has been ongoing.
Journal: Applied Economics
Pages: 4180-4187
Issue: 41
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2016.1276279
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276279
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Handle: RePEc:taf:applec:v:49:y:2017:i:41:p:4180-4187
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad A. Cheema
Author-X-Name-First: Muhammad A.
Author-X-Name-Last: Cheema
Author-Name: Gilbert V. Nartea
Author-X-Name-First: Gilbert V.
Author-X-Name-Last: Nartea
Title: Cross-sectional and time-series momentum returns: are Islamic stocks different?
Abstract:
We search for differences in both unconditional and conditional momentum returns of Islamic and Non-Islamic stocks and test implications of competing behavioural theories that aim to explain momentum returns. Our results show that there is no significant difference in momentum returns between Islamic versus Non-Islamic stocks with respect to both cross-sectional (CS) and time-series (TS) momentum strategies even when we condition momentum returns on market dynamics, information uncertainty and idiosyncratic volatility. We also find that the TS strategy outperforms (underperforms) the CS strategy in market continuations (transitions) consistent with the recent evidence in the U.S. market.Furthermore, we find that CS and TS strategies of both Islamic and Non-Islamic stocks are profitable only when the market continues in the same state consistent with overconfidence driving momentum returns of both Islamic and Non-Islamic stocks.
Journal: Applied Economics
Pages: 5830-5845
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488068
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488068
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Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5830-5845
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Maxwell
Author-X-Name-First: Michael
Author-X-Name-Last: Maxwell
Author-Name: Michael Daly
Author-X-Name-First: Michael
Author-X-Name-Last: Daly
Author-Name: Daniel Thomson
Author-X-Name-First: Daniel
Author-X-Name-Last: Thomson
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: Optimizing tracking error-constrained portfolios
Abstract:
Active portfolios subject to tracking error (TE) constraints are the typical setup for active managers tasked with outperforming a benchmark. The risk and return relationship of such constrained portfolios is described by an ellipse in traditional mean-variance space and the ellipse’s flat shape suggests an additional constraint which improves the performance of the active portfolio. Although subsequent work isolated and explored different portfolios subject to these constraints, absolute portfolio risk has been consistently ignored. A different restriction – maximization of the traditional Sharpe ratio on the constant TE frontier in absolute risk/return space – is added here to the existing constraint set, and a method to generate this portfolio is explained. The resultant portfolio has a lower volatility and higher return than the benchmark, it satisfies the TE constraint and the ratio of excess absolute return to risk is maximized (i.e. maximum Sharpe ratio in absolute space).
Journal: Applied Economics
Pages: 5846-5858
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488069
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488069
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Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5846-5858
Template-Type: ReDIF-Article 1.0
Author-Name: Dusanee Kesavayuth
Author-X-Name-First: Dusanee
Author-X-Name-Last: Kesavayuth
Author-Name: Robert E. Rosenman
Author-X-Name-First: Robert E.
Author-X-Name-Last: Rosenman
Author-Name: Vasileios Zikos
Author-X-Name-First: Vasileios
Author-X-Name-Last: Zikos
Title: Retirement and health behaviour
Abstract:
This article investigates whether and to what extent retirement changes health behaviour. For identification we use an instrumental variable approach that exploits exogenous variations in the early and normal retirement ages within and across 10 European countries. Our results reveal that among those who abstained from alcohol and vigorous or moderate exercise at baseline, retirement increased those activities. Non-smokers did not increase smoking upon retirement. Retirement led to less smoking for those who smoked before retiring. It also brought about an increase in vigorous exercise for those who had the behaviour at baseline. These results further vary by a person’s job type, but less so with respect to gender or geographic region. Overall, our findings provide new empirical evidence on the causal link between retirement and health behaviours and how such link relates to four sources of individual heterogeneity: gender, European geographic region, job type and baseline health behaviour.
Journal: Applied Economics
Pages: 5859-5876
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488070
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488070
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Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5859-5876
Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Liang Liu
Author-X-Name-First: Chih-Liang
Author-X-Name-Last: Liu
Author-Name: Yi-Mien Lin
Author-X-Name-First: Yi-Mien
Author-X-Name-Last: Lin
Title: Do mispricing and financial constraints matter for investment decisions?
Abstract:
This study investigates how mispricing and financing constraints affect firms’ future capital investments. We find that when the financing constraints are high, overpriced (underpriced) firms invest more (less) subsequently under previous non-optimal investments. The overpriced (underpriced) firms with precautionary motives invest significantly less subsequently when they are financially constrained. The overall evidence suggests that share mispricing, financial constraints and precautionary motives play a critical role that enables investors to less effectively monitor managers’ real decisions, thus limiting firms’ capital investments.
Journal: Applied Economics
Pages: 5877-5892
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488071
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488071
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Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5877-5892
Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Shiyi Li
Author-X-Name-First: Shiyi
Author-X-Name-Last: Li
Title: Distance and government resource allocation: from the perspective of environmental information disclosure policy change
Abstract:
This article investigates the relationship between environmental information and government resources and focuses on the moderate effect of distance. The results show that (1) the promulgation and implementation of the Measures for the Disclosure of Environmental Information (MDEI) can improve the level and quality of environmental information and then increase resource allocation and (2), after the MDEI are issued, distance has a significant negative moderate effect on the positive impact of MDEI, and the negative moderate effect of distance is more significant in low GDP and marketization regions, high-polluting industries and firms audited by the non-Big 4 accounting firms.
Journal: Applied Economics
Pages: 5893-5902
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488072
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488072
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Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5893-5902
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: Returns to education in China: a meta-analysis
Abstract:
Within labour economics, returns to education is an area of focused research. Moreover, amongst studies looking at emerging economies, China is the most widely studied economy. While there is a general consensus that returns to education are positive, studies use various datasets and methodologies and consequently present varying estimates of returns to education. We perform a meta-analysis of these estimates of the returns to education in China, addressing issues of heterogeneity in the existing literature and examining whether variations in reported estimates can be explained by study characteristics such as dataset and estimation methods, among others. The meta-regression results show that variations in reported estimates can be accounted for by study characteristics such as data source, estimation method and sample period, among others. The results support the college premium hypothesis and reveal that the returns to education for college graduates are higher than those for other (lower) levels of education.
Journal: Applied Economics
Pages: 5903-5919
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488074
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488074
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Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5903-5919
Template-Type: ReDIF-Article 1.0
Author-Name: Yihong Tang
Author-X-Name-First: Yihong
Author-X-Name-Last: Tang
Author-Name: Jing Yan
Author-X-Name-First: Jing
Author-X-Name-Last: Yan
Author-Name: Feng Yu
Author-X-Name-First: Feng
Author-X-Name-Last: Yu
Title: Multi-product firms, heterogeneous quality and exporting behaviour: product-level evidence from the movie industry
Abstract:
This article examines how quality affects heterogeneous multiple-product firms’ exporting behaviours. We develop a structural model of the global movie market, including both consumers’ movie demand choices and firms’ exporting decisions. A movie studio is a multi-product firm that releases many movies within a year. We model movie quality as a combination of firm-level appeal and product-level attractiveness. We find that both studio-level and movie-level heterogeneity affect demand for movie, and movie-level heterogeneity is relatively more important. We also explore the counterfactual effects of quality improvement and trade liberalization on trade. Our results show that improvement of quality increases both intensive margin and extensive margin of trade. By elimination of quota, we find that trade liberalization increases movie exports to a foreign market by 19%. The results of our study can also help improve understanding of trade in the service industry. For instance, we do not find a positive correlation between the foreign entry costs and the geographic distance, as in the case of manufacture goods.
Journal: Applied Economics
Pages: 5920-5934
Issue: 54
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489506
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489506
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Handle: RePEc:taf:applec:v:50:y:2018:i:54:p:5920-5934
Template-Type: ReDIF-Article 1.0
Author-Name: Ramaprasad Bhar
Author-X-Name-First: Ramaprasad
Author-X-Name-Last: Bhar
Author-Name: A. G. Malliaris
Author-X-Name-First: A. G.
Author-X-Name-Last: Malliaris
Title: Asset price momentum and monetary policy: time-varying parameter estimation of Taylor Rules
Abstract:
In this article, we consider two new independent variables as inputs to the Taylor Rule. These are the equity and housing momentum variables and are introduced to investigate the potential usefulness of these two variables in guiding the Fed to lean against potential bubbles. Such effectiveness cannot adequately be evaluated if the Taylor Rule estimation follows the standard regression methodology that has been criticized in the literature to be econometrically incorrect. Using a time-varying parameter estimation methodology, we find that equity momentum as an input in the Taylor Rule does not contribute to changes in Fed Funds. However, the housing momentum plays an important role econometrically and can be a useful tool in setting Fed Funds rates.
Journal: Applied Economics
Pages: 5329-5339
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176117
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176117
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Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5329-5339
Template-Type: ReDIF-Article 1.0
Author-Name: J. F. Li
Author-X-Name-First: J. F.
Author-X-Name-Last: Li
Author-Name: Z. X. Lin
Author-X-Name-First: Z. X.
Author-X-Name-Last: Lin
Title: Social benefit expenditures and stagflation: evidence from the United States
Abstract:
Stagflation refers to the terrible economic malaise associated with declining growth, hyperinflation and high unemployment. Unlike previous cost-push explanations such as an overheated labour market and oil prices, this article suggests that social benefit expenditures are a potential cause of stagflation. We investigate the impact of social benefit expenditures on stagflation in the U.S. over the 1950–2014 period by employing an autoregressive distributed lag (ARDL) bounds testing approach to cointegration, which was developed by Pesaran, Shin, and Smith. The influence of social benefit expenditures on economic growth and inflation and unemployment rates is estimated. The empirical results from the U.S. suggest that economic growth responds negatively to social benefit expenditures, while inflation and unemployment rates are both positively associated with social benefit expenditures. Thus, government-led rigid welfare could contribute to stagflation in the U.S. Instead of increasing people’s happiness, the over-burdened welfare system could push people into economic malaise. This stagflation risk shouldn’t be ignored. These results are important for U.S. policymakers and can inform other governments characterized by high levels of well-being.
Journal: Applied Economics
Pages: 5340-5347
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176118
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176118
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Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5340-5347
Template-Type: ReDIF-Article 1.0
Author-Name: J. Bradley Karl
Author-X-Name-First: J. Bradley
Author-X-Name-Last: Karl
Author-Name: Patricia H. Born
Author-X-Name-First: Patricia H.
Author-X-Name-Last: Born
Author-Name: W. Kip Viscusi
Author-X-Name-First: W. Kip
Author-X-Name-Last: Viscusi
Title: The relationship between the markets for health insurance and medical malpractice insurance
Abstract:
This article evaluates the interdependence of medical malpractice insurance markets and health insurance markets. Prior research has addressed the performance of these markets, individually, without specifically quantifying the extent to which they are linked. Increasing levels of health insurance losses could increase the scale of potential malpractice claims, boosting medical malpractice losses, or could embody an improvement in medical care quality, which will reduce malpractice losses. Our results for a state panel data set from 2002 to 2009 demonstrate that health insurance losses are negatively related to medical malpractice insurance losses. An additional dollar of health insurance losses is associated with a $0.01–$0.05 reduction in medical malpractice losses. These findings have potentially important implications for assessments of the net cost of health insurance policies.
Journal: Applied Economics
Pages: 5348-5363
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176119
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176119
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Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5348-5363
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Nafeo Abdulai
Author-X-Name-First: Abdul Nafeo
Author-X-Name-Last: Abdulai
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Allocative and scale efficiency among maize farmers in Zambia: a zero efficiency stochastic frontier approach
Abstract:
The commonly used stochastic frontier model assumes that all firms are inefficient. In this specification, inefficiency is non-negative, and the probability of inefficiency being exactly zero is also zero. To the extent that efficiency varies widely across farms in under-developed economies, it is important to employ techniques that account for both inefficiency and full efficiency to ensure unbiased efficiency estimates. In this study, we employ a zero-inefficiency stochastic frontier model to examine allocative efficiency and scale economies, as well as key determinants of efficiency among Zambian maize farmers. The results show that, unlike the stochastic frontier model, the zero-inefficiency stochastic frontier model successfully allows for both fully efficient and inefficient firms to be accounted for in the estimation procedure. The estimates also reveal the presence of scale economies, with the zero-inefficiency stochastic frontier model better predicting scale efficiency compared to the stochastic frontier model. The findings also show that inefficiency is explained by the level of education, access to extension services, distance to markets and access to credit.
Journal: Applied Economics
Pages: 5364-5378
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176120
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176120
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Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5364-5378
Template-Type: ReDIF-Article 1.0
Author-Name: Shangqin Hong
Author-X-Name-First: Shangqin
Author-X-Name-Last: Hong
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Author-Name: Philip McCann
Author-X-Name-First: Philip
Author-X-Name-Last: McCann
Author-Name: Trinh Le
Author-X-Name-First: Trinh
Author-X-Name-Last: Le
Title: Why firm size matters: investigating the drivers of innovation and economic performance in New Zealand using the
Abstract:
The performance of the New Zealand (NZ) economy is something of an enigma. Although ranked one (of 144 countries) for four important ‘growth fundamentals’ NZ is ‘middle of the pack’ when it comes to economic growth, productivity and process innovation. Using four iterations (2005, 2007, 2009 and 2011) of the Business Operations Survey, this research seeks to shed some new light on this conundrum by using a multivariate probit regression (mvprobit) approach applied to pooled samples in excess of 22,000 unit record observations of NZ firms. The results suggest that factors including firm size, high perceived quality, investment/research and development (R&D) capability, major technology change, application of formal IP protection and new export markets are systematically and positively related to innovation; while many external issues, such as those related to geography, market structure, business environment, have little influence. At the firm level, innovations in NZ are highly dependent on the firms’ internal ability to develop new technologies and market demand. The (very small) size of firms does matter in NZ, which lacks a major ‘home market’ or a major trade block on its doorstep, such that ultimately, government may need to be involved to maintain a viable scale for domestic R&D.
Journal: Applied Economics
Pages: 5379-5395
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1178843
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178843
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Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5379-5395
Template-Type: ReDIF-Article 1.0
Author-Name: Nicoleta Iliescu
Author-X-Name-First: Nicoleta
Author-X-Name-Last: Iliescu
Author-Name: Satyaki Dutta
Author-X-Name-First: Satyaki
Author-X-Name-Last: Dutta
Title: The information content of implied volatility in developed versus developing FX markets
Abstract:
This article predicts the daily movement of monthly foreign exchange (FX) rate volatility using a linear combination of a time-series model and implied volatilities from options. The focus is on analysing the FX volatilities in three developing economies (the Brazilian real (BRL), the Indian rupee (INR) and the Russian ruble (RUB)) against the US dollar (USD). The empirical exercise utilizes two time-series models, mixed data sampling (MIDAS) and GARCH. The analysis indicates that for both developed and developing economies the predictive power of MIDAS and that of GARCH is comparable. Further on in this article, we will ascertain whether the relationship between realized and implied volatility is fundamentally different in the case of developing economies from that among developed economies. Thus, we compare the pairs USD/BRL, USD/INR and USD/RUB against EURO/USD and USD/Japanese yen to determine the information content and predictive power of implied volatilities. Plots of the MIDAS coefficients show that the volatility is more persistent in developing economies than in developed economies.
Journal: Applied Economics
Pages: 5396-5404
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1178844
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178844
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Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5396-5404
Template-Type: ReDIF-Article 1.0
Author-Name: Chiara Guerello
Author-X-Name-First: Chiara
Author-X-Name-Last: Guerello
Author-Name: Marco Tronzano
Author-X-Name-First: Marco
Author-X-Name-Last: Tronzano
Title: The expectations hypothesis of the term structure of interest rates and monetary policy: some evidence from Asian countries
Abstract:
This article outlines a panel data approach to modelling the term structure of interest rates in the short and in the long run. We find robust evidence supporting the expectations hypothesis of the term structure (EHTS) for a small sample of Asian emerging markets. Furthermore, we detect some relevant differences in the transmission mechanism of monetary policy, and the existence of a McCallum (2005) rule (no exogeneity of monetary policy to the yield curve) in some countries. Finally, we document the influence of an international global factor (i.e. a time-varying global risk premium) on the yield curve, while local country-specific factors are not statistically significant.
Journal: Applied Economics
Pages: 5405-5420
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1178845
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178845
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Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:5405-5420
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: 1-1
Issue: 55
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1216679
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1216679
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Handle: RePEc:taf:applec:v:48:y:2016:i:55:p:1-1
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Botta
Author-X-Name-First: Marco
Author-X-Name-Last: Botta
Author-Name: Luca Colombo
Author-X-Name-First: Luca
Author-X-Name-Last: Colombo
Title: Seasoned equity offering announcements and the returns on European bank stocks and bonds
Abstract:
We analyse, by means of appropriate event studies, the returns following seasoned equity offering announcements made by western European banks between 2008 and 2014. Consistently with the pertinent literature on non-financial companies, we find that shareholders experience negative returns. We highlight that the same occurs for bondholders, although not surprisingly to a smaller extent. Overall, our results show that seasoned equity offering announcements play an important signalling role also in the banking industry, despite the tight regulation and supervision by banking authorities, which should in principle reduce the impact on pricing of the information asymmetries about banks’ financial conditions.
Journal: Applied Economics
Pages: 1339-1359
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527450
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527450
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Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1339-1359
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Rohloff
Author-X-Name-First: Sebastian
Author-X-Name-Last: Rohloff
Title: Commodity prices and the AUD-Yen exchange rate: a real-time forecasting analysis
Abstract:
I study the impact of the GSCI commodity price indices on the Australian dollar-Japanese yen nominal exchange rate using a modified version of the classic monetary approach of exchange rate determination. I use a broad range of model-selection and model-averaging criteria. I find some evidence for a short-lived relationship as far as inclusions in the optimal forecasting models are concerned. In general, though, results of the Diebold-Mariano and Clark-West test show that results are not stable over the whole sample.
Journal: Applied Economics
Pages: 1360-1382
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527451
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527451
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Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1360-1382
Template-Type: ReDIF-Article 1.0
Author-Name: Kay H. Hofmann
Author-X-Name-First: Kay H.
Author-X-Name-Last: Hofmann
Author-Name: Christian Opitz
Author-X-Name-First: Christian
Author-X-Name-Last: Opitz
Title: Talent and publicity as determinants of superstar incomes: empirical evidence from the motion picture industry
Abstract:
By drawing on the two prevailing economic stardom theories, the paper investigates the sources of superstardom in the US movie industry. For the econometric analysis, we use income and popularity data of screen actresses and actors from the annual Celebrity 100 lists as published by Forbes Magazine. The empirical findings indicate that Hollywood, in contrast to other professional settings, supports two different types of stars. While ‘talent stars’ exploit acting merit, it is media exposure that drives the income of ‘publicity stars’. Apparently, in the motion picture industry both underlying resources are equally important and equally valued. Based on these insights we develop concrete recommendations for the career management of artists and the management of film projects.
Journal: Applied Economics
Pages: 1383-1395
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527452
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527452
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Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1383-1395
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Baldini
Author-X-Name-First: Massimo
Author-X-Name-Last: Baldini
Author-Name: Carlo Mazzaferro
Author-X-Name-First: Carlo
Author-X-Name-Last: Mazzaferro
Author-Name: Paolo Onofri
Author-X-Name-First: Paolo
Author-X-Name-Last: Onofri
Title: Pension expectations, reforms and macroeconomic downturn in Italy. What can microdata tell us?
Abstract:
We use different years of the Bank of Italy’s Survey on Household Income and Wealth (SHIW) to explore how Italian workers’ expectations regarding their future level of pension benefits and retirement age changed from 2000 to 2014. Comparing expected and statutory values for future pension benefits and retirement ages, we find that knowledge of the pension system and its rules are not evenly distributed among workers. Some sections of the population, in particular, younger workers, women and the self-employed, are less precise in estimating their future pension benefits. As for retirement age, a large share of the working population still has not completely assimilated the implications of the linkage with the evolution of lifetime expectations at 65. Expectations in the final part of the period observed are dominated by increasing pessimism, which may be related to the macroeconomic crisis of the Italian economy and to the approval of a severe pension reform in 2011. Checking whether a household’s total wealth is consistent with lifetime consumption, we find that households where the head overestimates the future value of the pension benefit accumulate fewer resources than the remaining part of the population.
Journal: Applied Economics
Pages: 1396-1410
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527453
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527453
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Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1396-1410
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Plum
Author-X-Name-First: Alexander
Author-X-Name-Last: Plum
Title: The British low-wage sector and the employment prospects of the unemployed
Abstract:
Are low wages a way for the unemployed to switch to higher-paying jobs? Using data from the British Household Panel Survey, the labour market dynamics of unemployed, low-paid and higher-paid employed men are analysed. Moreover, the respective (un)employment duration and occupational skill level are accounted for. Results show that in general low wages significantly reduce the risk of future unemployment and increase the chances of ascending the salary ladder, especially in the case of long-term unemployment (>360 days). Furthermore, the occupational skill level has a substantial influence on the upward mobility of low-paid jobs: individuals working in the initial period in a low-paid and higher-skilled occupation have on average an 11 percentage points higher probability of entering higher pay compared to when working in a low-paid and low-skilled occupation.
Journal: Applied Economics
Pages: 1411-1432
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527454
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527454
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Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1411-1432
Template-Type: ReDIF-Article 1.0
Author-Name: Miaochen Lv
Author-X-Name-First: Miaochen
Author-X-Name-Last: Lv
Author-Name: Manying Bai
Author-X-Name-First: Manying
Author-X-Name-Last: Bai
Title: Political uncertainty and corporate debt financing: empirical evidence from China
Abstract:
We examine the influence of political uncertainty on corporate debt financing under the Chinese highly specialized political system. A new reasonable and effective alternative indicator, official turnover reason, is constructed to measure different political uncertainty level. Robust results suggest that listed companies will keep low debt financing level and smooth debt financing volatility under political uncertainty, which will be weakened during the global financial crisis. We also find that the listed company will raise equity financing level while overall financing is significantly reduced. In addition, SOEs are more sensitive to political uncertainty than non-SOEs, as they have stronger political connections with government officials.
Journal: Applied Economics
Pages: 1433-1449
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527455
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527455
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Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1433-1449
Template-Type: ReDIF-Article 1.0
Author-Name: Gilberto Oliveira Boaretto
Author-X-Name-First: Gilberto Oliveira
Author-X-Name-Last: Boaretto
Author-Name: Cleomar Gomes Da Silva
Author-X-Name-First: Cleomar Gomes
Author-X-Name-Last: Da Silva
Title: Services inflation dynamics and persistence puzzle in Brazil: a time-varying parameter approach
Abstract:
This article analyses services inflation dynamics in Brazil, focusing on the Services Inflation Persistence Puzzle, for monthly data from January 2004 to February 2016. We apply a time-varying parameter (TVP) approach, via a Kalman filter, to estimate hybrid Phillips curves and compare inflation inertia for tradable goods and services inflation. Aggregate Brazilian Extended Consumer Price Index inflation serves as a benchmark. To justify the TVP analysis, parameter instability and structural change tests are implemented, based on OLS and Generalized Method of Moments (GMM) frameworks. The main results are as follows: (i) the TVP approach is relevant due to observed instability in some parameters estimated; (ii) inflation expectation coefficients are higher than lagged inflation in all calculations, but inflation inertia is not negligible at all; (iii) services inflation persistence ranges from 27 to 36%, whereas tradable goods inflation persistence ranges from 36 to 47%, providing evidence of the Services Inflation Persistence Puzzle in Brazil; (iv) from 2009 onwards an increase in one percentage point in real wages raises monthly services inflation rate by 0.02 to 0.03 percentage point; (v) there is evidence that cost-push pressures, due to wage increases in the service sector, are more important to explain services inflation than demand pressures from early 2009 to mid-2014.
Journal: Applied Economics
Pages: 1450-1462
Issue: 13
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527456
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527456
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Handle: RePEc:taf:applec:v:51:y:2019:i:13:p:1450-1462
Template-Type: ReDIF-Article 1.0
Author-Name: M. Christl
Author-X-Name-First: M.
Author-X-Name-Last: Christl
Author-Name: Monika Köppl–Turyna
Author-X-Name-First: Monika
Author-X-Name-Last: Köppl–Turyna
Title: Gender wage gap and the role of skills and tasks: evidence from the Austrian PIAAC data set
Abstract:
We analyze the gender differences in skills, tasks and skill matching of workers, and the impact of these factors on the gender wage gap, using the Survey of Adult Skills, a product of the OECD Programme for the International Assessment of Adult Competencies (PIAAC). We show that data on these characteristics, not available in traditional data sets, explain a substantial part of the gender wage gap. Based on up-to-date econometric methodology, the unexplained part of the gender wage gap is reduced by six to nine percentage points across the whole wage distribution when we add skill and occupational task variables and control for sample selection. We show that this result stems from gender differences in returns on tasks and skills, and gender differences in skill endowments and occupational tasks.
Journal: Applied Economics
Pages: 113-134
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1630707
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630707
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Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:113-134
Template-Type: ReDIF-Article 1.0
Author-Name: Thaddée Badibanga
Author-X-Name-First: Thaddée
Author-X-Name-Last: Badibanga
Author-Name: John Ulimwengu
Author-X-Name-First: John
Author-X-Name-Last: Ulimwengu
Title: Optimal investment for agricultural growth and poverty reduction in the democratic republic of congo a two-sector economic growth model
Abstract:
We propose a two-sector economic growth model and solve it numerically using the relaxation algorithm to determine the optimal levels of investment for sustainable agricultural growth and poverty reduction. Overall, our findings suggest that past dismal growth performance and poverty trends in the Democratic Republic of Congo (DRC) are due to sub-optimal investment in agricultural sector. Our results suggest that optimal level of agricultural investment paves the way to achieving both growth and poverty goals faster than it would have been possible otherwise. Over the period 2002-2012, agricultural investment represents only 45% of its optimal levels. Under the optimal investment scenario, agricultural GDP grows faster. However, agricultural GDP growth rate falls significantly behind that of non-agricultural GDP, and thus delay the achievement of growth and poverty goals. Simulation results suggest that additional agricultural investment coupled with improved agricultural inputs productivity will speed up the country’s pace toward achieving growth and poverty reduction targets: a 10% increase in labour productivity combined with a 10% increase in land productivity reduces by 18 years the amount of time within which the CAADP growth goal will be reached and increases the pace of poverty reduction.
Journal: Applied Economics
Pages: 135-155
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1630709
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1630709
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Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:135-155
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas W. Zuehlke
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Zuehlke
Title: Estimation of a Two-Limit Tobit model with generalized Box–Cox transformation and unknown censoring thresholds
Abstract:
This article considers estimation of a Two-Limit Tobit model with generalized Box–Cox transformation and unknown censoring thresholds. The maximum likelihood estimates of the censoring thresholds are the smallest and largest elements of the order statistic of the transformed dependent variable for the uncensored subsample. Conditional on the estimated censoring thresholds and the parameter of the generalized Box–Cox transformation, the model is a standard Tobit model. If the dependent variable is scaled by the geometric mean of its absolute values for the uncensored subsample, then currently available software for estimation of Tobit models may be used in conjunction with a grid search over the Box–Cox parameter to determine the globalmaximum likelihood estimates. The advantage of the models proposed in this article is that: 1) use of estimated censoring thresholds serve to directly eliminate the understatement of tail probabilities that can result from use of fixed thresholds, and 2) use of the generalized Box–Cox transformation allows greater flexibility in the shape of the distribution used to model quantitative variation in the uncensored subsample, as well as greater flexibility in the tail probabilities of the censored subsample.
Journal: Applied Economics
Pages: 156-174
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1638498
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638498
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Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:156-174
Template-Type: ReDIF-Article 1.0
Author-Name: D. Estévez Schwarz
Author-X-Name-First: D.
Author-X-Name-Last: Estévez Schwarz
Author-Name: E. Sommer
Author-X-Name-First: E.
Author-X-Name-Last: Sommer
Title: Feasible smooth income tax schedules: benefits and distributional implications
Abstract:
Existing tax schedules are often overly complex and characterized by discontinuities in the marginal tax burden. In this paper, we propose a class of progressive smooth functions to replace personal income tax schedules. These functions depend only on three meaningful parameters, and avoid the drawbacks associated with defining tax schedules through various tax brackets. Based on representative micro data, we derive revenue-neutral parameters for four different types of tax regimes (Austria, Germany, Hungary and Spain). We then analyze the possible implications of a hypothetical switch to smoother income tax tariffs. It turns that smooth tax functions are convenient to eliminate bracket creep, while aggregate income inequality is uniformly reduced to a small extent.
Journal: Applied Economics
Pages: 175-194
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1638500
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638500
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Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:175-194
Template-Type: ReDIF-Article 1.0
Author-Name: Kyoung Y. Na
Author-X-Name-First: Kyoung Y.
Author-X-Name-Last: Na
Author-Name: Dong H. Kim
Author-X-Name-First: Dong H.
Author-X-Name-Last: Kim
Author-Name: Byoung G. Park
Author-X-Name-First: Byoung G.
Author-X-Name-Last: Park
Author-Name: Sang W. Yoon
Author-X-Name-First: Sang W.
Author-X-Name-Last: Yoon
Author-Name: Chang-Ho Yoon
Author-X-Name-First: Chang-Ho
Author-X-Name-Last: Yoon
Title: ICT and transport infrastructure development: an empirical analysis of complementarity
Abstract:
This paper provides an empirical framework to assess the nonlinear complementary linkage effects that arise from the interaction between motorway capital and information and communications technology (ICT) capital in developed economies. Using panel data from the Organisation for Economic Co-operation and Development (OECD) member countries and controlling for endogeneity, the paper finds that there exists a critical mass for ICT capital such that if the capital grows beyond the critical mass, the marginal contribution of motorway capital to productivity growth increases as the motorway is extended. This empirical result explains variations in the productivity contributions of transport infrastructure across countries that differ in their ICT infrastructure and has implications for setting the investment priorities of key components of infrastructure.
Journal: Applied Economics
Pages: 195-211
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1640860
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640860
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Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:195-211
Template-Type: ReDIF-Article 1.0
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Yasfir Ibraimo
Author-X-Name-First: Yasfir
Author-X-Name-Last: Ibraimo
Title: The macroeconomic effects of public debt: an empirical analysis of Mozambique
Abstract:
We assess empirically the macroeconomic effects of public debt for the case of Mozambique over the period of 2000Q1-2016Q4. We use a Vector Autoregression model to assess these effects through impulse response functions and variance decomposition. We conclude that debt service variables have more negative economic effects than debt variables. Debt variables over the period of this study had no significant impact on the real output and the debt service component depressed the real output, increased the general price level and accounted for the depreciation on the domestic currency.
Journal: Applied Economics
Pages: 212-226
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644445
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644445
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Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:212-226
Template-Type: ReDIF-Article 1.0
Author-Name: Longyao Zhang
Author-X-Name-First: Longyao
Author-X-Name-Last: Zhang
Author-Name: Wenli Cheng
Author-X-Name-First: Wenli
Author-X-Name-Last: Cheng
Author-Name: Enjiang Cheng
Author-X-Name-First: Enjiang
Author-X-Name-Last: Cheng
Author-Name: Bi Wu
Author-X-Name-First: Bi
Author-X-Name-Last: Wu
Title: Does land titling improve credit access? Quasi-experimental evidence from rural China
Abstract:
Based on official surveys conducted in 2010 and 2015, we study how the Chinese land titling reform beginning in 2009 affected rural households’ access to credit. We find that the reform had differential credit effects across households. For households with above-average economic status (measured by the area of cultivated land, level of income, and convenience of bank visits), access to formal credit improved as a result of the reform. For households with below-average economics status, reliance on informal credit lessened. We show that the availability of land as collateral might have enhanced access to formal credit. Another channel of the credit effects was income and wealth. We find that land titling had a positive impact on average household income, which would reduce their need for informal credit. For those households with above-average area of cultivated land, land titling increased their wealth and might have expanded their operations, which would increase both their credit demand and their ability to access formal credit.
Journal: Applied Economics
Pages: 227-241
Issue: 2
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644446
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644446
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Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:227-241
Template-Type: ReDIF-Article 1.0
Author-Name: Juan A. Mañez
Author-X-Name-First: Juan A.
Author-X-Name-Last: Mañez
Author-Name: Rafael Moner Colonques
Author-X-Name-First: Rafael
Author-X-Name-Last: Moner Colonques
Author-Name: Jose J. Sempere-Monerris
Author-X-Name-First: Jose J.
Author-X-Name-Last: Sempere-Monerris
Author-Name: Amparo Urbano
Author-X-Name-First: Amparo
Author-X-Name-Last: Urbano
Title: Brand price differentials in retail distribution: product quality and service quality
Abstract:
A theoretical model is proposed to disentangle the contribution of brand quality and retailer service quality in explaining brand price differentials across retailers. Two testable hypotheses emerge: (i) for each brand type, price differences across retailers are independent of brand quality differentials and (ii) at a given retailer, price differences between different brand qualities are independent of service quality differentials. Our empirical analysis, for a sample of the U.K. grocery retailer prices, discloses that retailers that offer higher service quality sell same quality brands at higher prices. In particular, service quality premia amount to 6% for national brands and are in the range of 9–15% for low-quality store brands. Besides, at a given retailer, the price premia paid for the national brand are very large: around 150% between national brands and low-quality store brands, and around 40% between national brands and high-quality store brands. Also, the price differential between the national brand and the low-quality store brand does not increase with service quality.
Journal: Applied Economics
Pages: 5749-5760
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184377
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184377
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5749-5760
Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Emilio Escamilla García
Author-X-Name-First: Pablo Emilio
Author-X-Name-Last: Escamilla García
Author-Name: María Elena Tavera Cortés
Author-X-Name-First: María Elena
Author-X-Name-Last: Tavera Cortés
Author-Name: Raúl Junior Sandoval Gómez
Author-X-Name-First: Raúl Junior
Author-X-Name-Last: Sandoval Gómez
Author-Name: Edmar Salinas Callejas
Author-X-Name-First: Edmar
Author-X-Name-Last: Salinas Callejas
Author-Name: Horacio Eliseo Alvarado Raya
Author-X-Name-First: Horacio Eliseo
Author-X-Name-Last: Alvarado Raya
Title: Economic feasibility analysis for electrical generation from biogas in waste disposal sites in Mexico City
Abstract:
This article highlights the main aspects related to energy generation from biogas in a controlled landfill of Mexico City in order to determine profits and environmental benefits. The designed structures and public policies to provide waste management services in Mexico City have been exceeded. A significant increase in demand has led the government of Mexico City to base public services on rudimentary techniques using obsolete equipment. The modernization of waste disposal facilities and the diversification of services linked to waste treatment can offer several business opportunities to optimize energy generation from solid wastes. The use of landfills to dispose large amounts of waste enables the energy generation from biogas. The energy generated can diversify the electricity market and provide economic benefits to landfills managers to cover operational costs.
Journal: Applied Economics
Pages: 5761-5771
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184378
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184378
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5761-5771
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: BRIC and GIPS – who drives who? Evidence from newly developed asymmetric causality tests
Abstract:
We investigate the asymmetric causal interaction between the stock markets of the GIPS (Greece, Ireland, Portugal and Spain) and those of the BRIC (Brazil, Russia, India and China) based on a newly developed asymmetric causality test by Hatemi-J (2012) [Hatemi-J, A. 2012. “Asymmetric Causality Tests with an Application.” Empirical Economics 43: 447–456. doi:10.1007/s00181-011-0484-x]. We confirm a significant stock market interaction between the two blocs in which the BRIC drives the GIPS but not vice versa. Thus, the BRIC seems to be more influential on the GIPS than the GIPS on the BRIC. However, this interaction occurs only during downmarket conditions but not during upmarket times. The BRIC pulls down the GIPS during bad times but does not pull them up during good times. These results have significant implications for international policymakers and provide further evidence on the existence of asymmetric causal interactions between financial markets.
Journal: Applied Economics
Pages: 5772-5778
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184379
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184379
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5772-5778
Template-Type: ReDIF-Article 1.0
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Author-Name: Zhengyi Jiang
Author-X-Name-First: Zhengyi
Author-X-Name-Last: Jiang
Title: Study on the industrial Eco-Efficiency in East China based on the Super Efficiency DEA Model: an example of the 2003–2013 panel data
Abstract:
The article uses the panel data of six provinces and one chartered city in East China from 2003 to 2013 as an example, constructs the input–output indicators system of Eco-Efficiency, calculates each region’s industrial Eco-Efficiencies throughout the 11 years by the Super Efficiency DEA Model, carries out dynamic studies on the efficiencies by using the Malmquist Index and analyses the factors influencing the efficiencies by the Tobit model. The empirical studies suggest the following: the regions in East China have relatively high industrial Eco-Efficiencies, and the efficiencies turn out a downward then upward trend; there are disparities among the regions as Shanghai, Zhejiang and Jiangsu are regions of relatively high industrial Eco-Efficiencies; the region all have Tfpch (productivity changes) greater than 1, of which the average is 7.2%, and the industrial Eco-Efficiencies are mainly driven by technology advancement; research and development, foreign capital and industrial structure each has a positive relationship with the industrial Eco-Efficiencies, and research and development has a significant influence, while industrial structure has an insignificant influence, and environment governance has a negative and significant influence.
Journal: Applied Economics
Pages: 5779-5785
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184380
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184380
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5779-5785
Template-Type: ReDIF-Article 1.0
Author-Name: Michel Dumont
Author-X-Name-First: Michel
Author-X-Name-Last: Dumont
Author-Name: Glenn Rayp
Author-X-Name-First: Glenn
Author-X-Name-Last: Rayp
Author-Name: Marijn Verschelde
Author-X-Name-First: Marijn
Author-X-Name-Last: Verschelde
Author-Name: Bruno Merlevede
Author-X-Name-First: Bruno
Author-X-Name-Last: Merlevede
Title: The contribution of start-ups and young firms to industry-level efficiency growth
Abstract:
This article examines the impact of start-ups (active for 1 up to 5 years) and young firms (active for 6 up to 10 years) on industry-level efficiency growth in six EU countries, covering the period 2002–2009. Using semi-parametric estimates of meta-frontier efficiency, it is found that surviving entrants gradually raise their efficiency level in all countries considered. Firm-level efficiency growth decreases with firm age, whereas reallocation towards efficient firms contributes more to industry-level growth as firms mature. The relative contribution of start-ups appears to have been important as they actually contributed positively to overall efficiency growth which, over the period under consideration, was negative in most countries, even before the ‘Great Recession’. There are indications of ‘cleansing’, due to the exit of less efficient firms, during the ‘Great Recession’.
Journal: Applied Economics
Pages: 5786-5801
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184381
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184381
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5786-5801
Template-Type: ReDIF-Article 1.0
Author-Name: Renée Fry-Mckibbin
Author-X-Name-First: Renée
Author-X-Name-Last: Fry-Mckibbin
Author-Name: Jasmine Zheng
Author-X-Name-First: Jasmine
Author-X-Name-Last: Zheng
Title: Effects of the US monetary policy shocks during financial crises – a threshold vector autoregression approach
Abstract:
This article analyzes the impact of monetary policy during periods of low and high financial stress in the US economy using a threshold vector autoregression model. There is evidence that expansionary monetary policy is effective during periods of high financial stress with larger responses having a higher proportionate effect on output. The existence of a cost channel effect during periods of high financial stress implies the existence of a short run output-inflation trade off during financial crises. Large expansionary monetary shocks also increase the likelihood of moving the economy out of a high financial stress regime.
Journal: Applied Economics
Pages: 5802-5823
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186792
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186792
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5802-5823
Template-Type: ReDIF-Article 1.0
Author-Name: Liping Lu
Author-X-Name-First: Liping
Author-X-Name-Last: Lu
Author-Name: Chunyang Wang
Author-X-Name-First: Chunyang
Author-X-Name-Last: Wang
Title: Investing against the wind: contagion during the recent financial crisis
Abstract:
This article examines the effect of Warren Buffett’s investment in Goldman Sachs on 24 September 2008, during the subprime mortgage crisis. Although this event is arguably perceived to be the biggest expression of confidence in the financial market during the crisis, by conducting event studies, we do not find the major counterparties of Goldman Sachs displayed positive abnormal returns. Moreover, the abnormal return is not significantly related to the counterparty connection. We have similar findings on these financial institutions’ default probabilities using credit default swap.
Journal: Applied Economics
Pages: 5824-5833
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186793
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186793
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:5824-5833
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: i-i
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1196045
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1196045
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: ii-ii
Issue: 59
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1208919
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208919
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Handle: RePEc:taf:applec:v:48:y:2016:i:59:p:ii-ii
Template-Type: ReDIF-Article 1.0
Author-Name: Matt E. Ryan
Author-X-Name-First: Matt E.
Author-X-Name-Last: Ryan
Author-Name: Jackson Celestin
Author-X-Name-First: Jackson
Author-X-Name-Last: Celestin
Title: Game over? Assessing the impact of the emergence of a profitable wagering strategy in major league baseball wagering markets
Abstract:
Testing the impact of profitable investment strategies is often hampered by the practical difficulties of determining who knew what, and when. This study examines the impact of the publication of a profitable wagering strategy on the Major League Baseball wagering market. While standard measures of market efficiency characterized the Major League Baseball win–loss moneyline market to be efficient, previous works shows that wagering on underdogs early in the season can generate persistent profits. Though the overall efficiency of the baseball wagering market remained after publication, these profitable opportunities dissipated. Bettor behaviour is found to play varying roles across different wagering strategies; up to half of the drop in returns can be attributed to wagering market participant behaviour.
Journal: Applied Economics
Pages: 3979-3991
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430349
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430349
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Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:3979-3991
Template-Type: ReDIF-Article 1.0
Author-Name: Tian-Tian Zhu
Author-X-Name-First: Tian-Tian
Author-X-Name-Last: Zhu
Author-Name: Yue-Jun Zhang
Author-X-Name-First: Yue-Jun
Author-X-Name-Last: Zhang
Author-Name: Ke Wang
Author-X-Name-First: Ke
Author-X-Name-Last: Wang
Title: The allocation of PhD enrolment quotas in China’s research-oriented universities based on equity and efficiency principles
Abstract:
PhD enrolment quota allocation proves the key concern for China’s universities to promote institutional reform and improve research level, and it is often characterized by the zero sum game among schools within a university. Therefore, this article develops a new indicator system for PhD enrolment quota allocation and efficiency evaluation in China, and then it reallocates the quotas considering the preferences of decision-makers and the efficiency based on the historical data during 2011–2015 in a research-oriented university in China. The results indicate that, first, the preferences of decision-makers in the university for article publications and research funds may significantly affect the allocation of PhD enrolment quotas among schools. Second, when the linear combination weighting method is used, the overall efficiency for PhD enrolment allocation proves the highest, among various weighting methods concerned. Finally, to improve the overall efficiency of the 19 schools, five social science schools and four engineering schools have to cut their PhD enrolment quotas; among them, three engineering schools should reduce the largest redundant quotas sharply. The methods and results in this article are conducive to the allocation of education resources which have the zero sum feature and are often accompanied with undesirable outputs.
Journal: Applied Economics
Pages: 3992-4004
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1438585
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1438585
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Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:3992-4004
Template-Type: ReDIF-Article 1.0
Author-Name: Astrid Ayala
Author-X-Name-First: Astrid
Author-X-Name-Last: Ayala
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Title: Equity market neutral hedge funds and the stock market: an application of score-driven copula models
Abstract:
In this article, we study the time-varying market neutrality of equity market neutral hedge funds. We use data from the Hedge Fund Research™ Equity Market Neutral Index (HFRX EH), which represents the performance of a portfolio of individual equity market neutral hedge funds. For each day, we measure different levels of association of the Standard and Poor’s 500 (S&P 500) index and the HFRX EH. We use non-linear dynamic conditional score models of location, scale and copula that, to the best of our knowledge, have not yet been applied in the body of literature on hedge funds. We study whether the neutrality of the HFRX EH that is evidenced in the body of literature for the period of April 1993–April 2003 also holds for the following decade, for the period of May 2003–December 2016. We estimate different average levels of association for the pre-, during- and post-periods of the US financial crisis of 2008. We find that the association of the S&P 500 and the HFRX EH, on average, is significantly positive for the pre- and post-periods of the financial crisis, and it is significantly negative for the period during the financial crisis.
Journal: Applied Economics
Pages: 4005-4023
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1440062
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1440062
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Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4005-4023
Template-Type: ReDIF-Article 1.0
Author-Name: Gregmar I. Galinato
Author-X-Name-First: Gregmar I.
Author-X-Name-Last: Galinato
Author-Name: Pitchayaporn Tantihkarnchana
Author-X-Name-First: Pitchayaporn
Author-X-Name-Last: Tantihkarnchana
Title: The amenity value of climate change across different regions in the United States
Abstract:
This article estimates the effect of climatic variables on house prices near ski resorts in different regions in the United States. We find that among the climate variables we test, average winter temperature has the most significant and robust effect where an increase in this climate variable increases house prices near ski resorts at a decreasing rate. At the mean average winter temperature levels, an increase in average winter temperature reduces housing prices for all regions except the Northeast. The consumer surplus from projected average winter temperature changes is negative across all regions and the largest negative effects are in the Midwest and Mountain regions.
Journal: Applied Economics
Pages: 4024-4039
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441507
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441507
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Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4024-4039
Template-Type: ReDIF-Article 1.0
Author-Name: Bei Yang
Author-X-Name-First: Bei
Author-X-Name-Last: Yang
Author-Name: Charles P. Cullinan
Author-X-Name-First: Charles P.
Author-X-Name-Last: Cullinan
Author-Name: Hui Liu
Author-X-Name-First: Hui
Author-X-Name-Last: Liu
Title: Analyst following and pay-performance sensitivity: evidence from China
Abstract:
We examine whether analyst following is associated with pay-performance sensitivity in China. Based on our analyses of 17,020 Chinese firm-years from 2007 to 2015, we find that pay-performance sensitivity is higher when companies are followed by financial analysts. We also find that the analyst following/pay-performance sensitivity relationship is stronger for non-state-owned enterprises (SOEs) than for SOEs. Overall, our results indicate that companies followed by financial analysts exhibit more pay-performance-sensitivity, which is consistent the notion that financial analysts can serve an external monitoring role.
Journal: Applied Economics
Pages: 4040-4053
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441508
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441508
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Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4040-4053
Template-Type: ReDIF-Article 1.0
Author-Name: Samique March-Dallas
Author-X-Name-First: Samique
Author-X-Name-Last: March-Dallas
Author-Name: Robert Daigler
Author-X-Name-First: Robert
Author-X-Name-Last: Daigler
Author-Name: Suchi Mishra
Author-X-Name-First: Suchi
Author-X-Name-Last: Mishra
Author-Name: Arun Prakash
Author-X-Name-First: Arun
Author-X-Name-Last: Prakash
Title: Exchange traded funds: leverage and liquidity
Abstract:
This paper examines the differences between leveraged and unleveraged Exchange Traded Funds (ETFs), particularly for liquidity and volatility characteristics. The impact of leverage on intraday liquidity (spread and depth) is analysed in two periods – one of normal volatility and the other of abnormal/high volatility. There is a significant difference in spread and depth of leveraged and unleveraged ETFs in periods of both normal volatility and high volatility; however, this difference is more pronounced in higher volatility periods. In high volatility periods, liquidity typically diminishes in all ETFs, and this is even more so for the leveraged ETFs. When leveraged ETFs are segregated into multiples based on their power to replicate the underlying benchmark (i.e. multiples of −3, −2, −1, 2, 3), the difference in spreads between normal and high volatility periods is typically larger. The double-leveraged ETF has the most significant difference between the positive and negative counter parts. However, the relationship in the progression of the multiples does not change linearly to correspond with the level of volatility. This may be due to the nonlinear relation between volume and volatility. We shed light on the magnification effect of financial leverage on microstructure of the ETFs.
Journal: Applied Economics
Pages: 4054-4073
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441510
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441510
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Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4054-4073
Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Mantalos
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Mantalos
Author-Name: Lars Hultkrantz
Author-X-Name-First: Lars
Author-X-Name-Last: Hultkrantz
Title: Estimating ‘gamma’ for tail-hedge discount rates when project returns are cointegrated with GDP
Abstract:
Martin Weitzman has suggested a method for calculating social discount rates for long-term investments when project returns are covariant with consumption or other macroeconomic variables, so-called ‘tail-hedge discounting’. This method relies on a parameter called ‘real project gamma’ that measures the proportion of project returns that is covariant with the macroeconomic variable. We compare two approaches for estimation of this gamma when the project returns and the macroeconomic variable are cointegrated. First, we use Weitzman’s own approach, and second a simple data transformation that keeps gamma within the zero to one interval. In a Monte-Carlo study, we show that the method of using a standardized series is better and robust under different data-generating processes. Both approaches are examined in a Monte-Carlo experiment and applied to Swedish time-series data from 1950–2011 for annual time-series data for rail freight (a measure of returns from rail investments) and GDP.
Journal: Applied Economics
Pages: 4074-4085
Issue: 37
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441511
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441511
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Handle: RePEc:taf:applec:v:50:y:2018:i:37:p:4074-4085
Template-Type: ReDIF-Article 1.0
Author-Name: Hidefumi Kasuga
Author-X-Name-First: Hidefumi
Author-X-Name-Last: Kasuga
Author-Name: Yuichi Morita
Author-X-Name-First: Yuichi
Author-X-Name-Last: Morita
Title: Does aid affect inequality?
Abstract:
We show that there was a negative correlation between pro-poor aid and inequality in the period before the mid-2000s. This article provides an explanation for this observed relationship. Using panel data on 34 countries for the period 1996–2014, we test the hypothesis that pro-poor aid has an inequality-reducing effect. To demonstrate that the negative correlation is not spurious, we use dynamic panel techniques with alternative specifications. We show that the share of pro-poor aid has a negative effect on inequality. In addition, we show that the interaction term between the poverty rate and the change in pro-poor aid has a significant effect. These empirical results are consistent with our theoretical predictions. The results imply that aid can reduce inequality by altering the allocation of aid, rather than by increasing the amount of aid.
Journal: Applied Economics
Pages: 6249-6262
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489512
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489512
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Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6249-6262
Template-Type: ReDIF-Article 1.0
Author-Name: Bakr Al-Gamrh
Author-X-Name-First: Bakr
Author-X-Name-Last: Al-Gamrh
Author-Name: Ku Nor Izah Ku Ismail
Author-X-Name-First: Ku Nor Izah
Author-X-Name-Last: Ku Ismail
Author-Name: Redhwan Al-Dhamari
Author-X-Name-First: Redhwan
Author-X-Name-Last: Al-Dhamari
Title: The role of corporate governance strength in crisis and non-crisis times
Abstract:
This study evaluates corporate governance practices of listed firms in the United Arab Emirates and investigates whether corporate governance mitigates/exacerbates the impact of leverage and risk on firm performance during crisis and non-crisis times. The study constructs a corporate governance index not only to examine the dispute of the role of corporate governance during the crisis but also its influence on other factors that fuelled the crisis. A firm-level panel data is used that spans the period 2008–2012 of all listed firms on Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM). The study finds a positive influence of corporate governance strength on the accounting performance, but a negative influence on the firms’ economic performance. In normal times, corporate governance mitigates the negative influence of leverage and risk on the accounting and economic firm performance. However, this synergy effect varies across performance indicators during crisis.
Journal: Applied Economics
Pages: 6263-6284
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489513
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489513
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Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6263-6284
Template-Type: ReDIF-Article 1.0
Author-Name: Frédéric Vrins
Author-X-Name-First: Frédéric
Author-X-Name-Last: Vrins
Author-Name: Mikael Petitjean
Author-X-Name-First: Mikael
Author-X-Name-Last: Petitjean
Title: Extreme events and the cumulative distribution of net gains in gambling and structured products
Abstract:
We argue that ethical principles in advertising and market communication cannot be properly discovered and applied to gambling without a deep understanding of its probabilistic implications, in particular when extreme events are influential. We carry out a probabilistic analysis of lottery games with lifetime prizes in order to derive sound recommendations about the pertinent information that should be communicated to nudge gamblers. We propose to focus on the cumulative distribution of net gains, for which there is currently no information available to gamblers. This holds true for structured products in which extreme events matter as well.
Journal: Applied Economics
Pages: 6285-6300
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489514
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489514
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Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6285-6300
Template-Type: ReDIF-Article 1.0
Author-Name: Sangho Kim
Author-X-Name-First: Sangho
Author-X-Name-Last: Kim
Title: Firm heterogeneity in sources of total factor productivity growth for Japanese manufacturing firms
Abstract:
We investigate firm heterogeneity in productivity sources across technology sectors for Japanese manufacturers. Firm heterogeneity in productivity sources conveys more information about firm-specific differences in productivity. In this regard, large firms are more productive, largely because they are more innovative, despite being slow to catch up during booms or operating at a less-than-efficient scale. We find that the beneficial impact of exports on productivity is most evident when firms become exporters, and intrafirm trade causes enough inefficiency to offset the salutary effects of trade after a certain threshold. Notably, firm heterogeneity in productivity varies considerably across the technology sectors.
Journal: Applied Economics
Pages: 6301-6315
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489515
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489515
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Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6301-6315
Template-Type: ReDIF-Article 1.0
Author-Name: Tsuyoshi Nihonsugi
Author-X-Name-First: Tsuyoshi
Author-X-Name-Last: Nihonsugi
Author-Name: Hiroshi Nakano
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Nakano
Author-Name: Katsuhiko Nishizaki
Author-X-Name-First: Katsuhiko
Author-X-Name-Last: Nishizaki
Author-Name: Takafumi Yamakawa
Author-X-Name-First: Takafumi
Author-X-Name-Last: Yamakawa
Title: Contributions in linear public goods experiments with stranger matching: two motivations
Abstract:
We investigated why subjects contribute to the public good in a linear public goods game with stranger matching. In this experiment, subjects were asked to determine their contributions to the public good and also their beliefs about their partners’ contributions. Additionally, the subjects were asked to note the reason for their decisions in real time. We used the subjects’ descriptions for a coding analysis, which is a classification method of the motivations. Integrating this coding methodology and behavioural data revealed that full contributions are the result of two motives. One is the conditional cooperation motive to achieve the socially optimal outcome. The other is the motive to lead the other group member to contribute all of their endowment in the following periods by signalling one’s own act (i.e. a teaching motive). The study further reveals that the two identified motives play a key role in driving cooperative behaviour, and that other motives (such as confusion and altruism) play a minor role.
Journal: Applied Economics
Pages: 6316-6326
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489517
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489517
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Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6316-6326
Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Estimating the monetary benefits of medicare eligibility for reducing the symptoms of dementia
Abstract:
We adopt a three-component method based on the idea of cost-saving for estimating the monetary benefits of Medicare eligibility for reducing dementia symptoms. The method involves Medicare eligibility lowering dementia symptoms, which reduces the need for dependent living, which in turn lowers caregiving costs. We use the Regression Discontinuity approach to establish a causal link between Medicare eligibility and dementia. The novel aspect of the study comes from using a quality-of-life proxy measure for the utility function to derive the marginal rate of substitution between dementia symptoms reduction and dependent living arrangements.
Journal: Applied Economics
Pages: 6327-6340
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489519
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489519
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Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6327-6340
Template-Type: ReDIF-Article 1.0
Author-Name: Fritz Schiltz
Author-X-Name-First: Fritz
Author-X-Name-Last: Schiltz
Author-Name: Chiara Masci
Author-X-Name-First: Chiara
Author-X-Name-Last: Masci
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Daniel Horn
Author-X-Name-First: Daniel
Author-X-Name-Last: Horn
Title: Using regression tree ensembles to model interaction effects: a graphical approach
Abstract:
Multiplicative interaction terms are widely used in economics to identify heterogeneous effects and to tailor policy recommendations. The execution of these models is often flawed due to specification and interpretation errors. This article introduces regression trees and regression tree ensembles to model and visualize interaction effects. Tree-based methods include interactions by construction and in a nonlinear manner. Visualizing nonlinear interaction effects in a way that can be easily read overcomes common interpretation errors. We apply the proposed approach to two different datasets to illustrate its usefulness.
Journal: Applied Economics
Pages: 6341-6354
Issue: 58
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489520
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489520
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Handle: RePEc:taf:applec:v:50:y:2018:i:58:p:6341-6354
Template-Type: ReDIF-Article 1.0
Author-Name: E. M. de Oliveira
Author-X-Name-First: E. M.
Author-X-Name-Last: de Oliveira
Author-Name: F. A. F. S. Cunha
Author-X-Name-First: F. A. F. S.
Author-X-Name-Last: Cunha
Author-Name: F. L. Cyrino Oliveira
Author-X-Name-First: F. L.
Author-X-Name-Last: Cyrino Oliveira
Author-Name: C. P. Samanez
Author-X-Name-First: C. P.
Author-X-Name-Last: Samanez
Title: Dynamic relationships between crude oil prices and socially responsible investing in Brazil: evidence for linear and non-linear causality
Abstract:
Recent years have witnessed an increasing interest in socially responsible investing (SRI), reflecting investors’ growing awareness of social, environmental, ethical and corporate governance issues. At the same time, the effect of oil price shocks on stock price returns has become a prominent issue due to surges in energy prices. Using the Brazilian corporate sustainability index (ISE) as a benchmark for socially responsible investments in the Brazilian stock market, the present study extends the understandings on the impact of oil prices on stock price behaviour, focusing on a new class of assets: those from socially responsible firms. To this end, apart from conventional linear causality approaches, we apply a nonparametric test by Diks and Panchenko (DP) on daily data spanning from January 2008 to December 2015 to test for non-linear causality, before and after controlling for conditional heteroscedasticity. Our findings show that, in spite of their efforts to become more socially responsible, firms that have adhered to the ISE in recent years are influenced by crude oil spot prices, especially the WTI crude. In line with previous studies, we also provide consistent evidence that the Brazilian stock market, as a whole, is associated with the international crude oil market.
Journal: Applied Economics
Pages: 2125-2140
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234695
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234695
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Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2125-2140
Template-Type: ReDIF-Article 1.0
Author-Name: Gustavo Canavire-Bacarreza
Author-X-Name-First: Gustavo
Author-X-Name-Last: Canavire-Bacarreza
Author-Name: Marcos Robles
Author-X-Name-First: Marcos
Author-X-Name-Last: Robles
Title: Non-parametric analysis of poverty duration using repeated cross section: an application for Peru
Abstract:
Using repeated cross-section annual data for Peru spanning 2002–2011 and non-parametric duration analysis, our estimates support the hypothesis that both stay in and exit from poverty (non-poverty) depends on the duration and sequence of poverty (non-poverty) spells. We find that longer periods in poverty reduce the probability of leaving poverty and, conversely, longer periods spent out of poverty reduce the chance of falling back into poverty. Also, we show that, at least in the last decade (of high economic growth), the probability of staying in poverty was lower than staying in non-poverty and the probability of re-entering in poverty was higher than re-entering in non-poverty, being both differences growing with the number of accumulated spells. Past experiences of poverty and non-poverty seem to be essential to predict the future status of poverty.
Journal: Applied Economics
Pages: 2141-2152
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234696
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234696
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Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2141-2152
Template-Type: ReDIF-Article 1.0
Author-Name: Mizuki Komura
Author-X-Name-First: Mizuki
Author-X-Name-Last: Komura
Author-Name: Hikaru Ogawa
Author-X-Name-First: Hikaru
Author-X-Name-Last: Ogawa
Title: The prodigal son: does the younger brother always care for his parentsin old age?
Abstract:
Studies have shown that the older sibling often chooses to live away from his elderly parents intending to free ride on the care provided by the younger child. In the presented model, we incorporate income effects and depict a different pattern frequently observed in Eastern countries; that is, the older sibling lives near his or her parents and takes care of them in old age. By generalizing the existing model, we show three cases of elderly parents being looked after by (i) the older sibling, (ii) the younger sibling, and (iii) both siblings, depending on the relative magnitude of the income effect and the strategic incentive for one sibling to free ride on the other. Our study also investigates the effect of changes in relative income on the level of total care received by parents.
Journal: Applied Economics
Pages: 2153-2165
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234697
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234697
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Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2153-2165
Template-Type: ReDIF-Article 1.0
Author-Name: Kazuhiko Kobori
Author-X-Name-First: Kazuhiko
Author-X-Name-Last: Kobori
Author-Name: Robert Hutchinson
Author-X-Name-First: Robert
Author-X-Name-Last: Hutchinson
Author-Name: Ping-Chang Lee
Author-X-Name-First: Ping-Chang
Author-X-Name-Last: Lee
Author-Name: Yao-Chuan Tsai
Author-X-Name-First: Yao-Chuan
Author-X-Name-Last: Tsai
Author-Name: Tsing-Zai C. Wu
Author-X-Name-First: Tsing-Zai C.
Author-X-Name-Last: Wu
Title: Main banks’ influence on financial reporting quality in Japan
Abstract:
This study investigated main banks’ influence on the quality of accounting firms’ audits and corporate firms’ earnings, focusing on companies on Japan’s Nikkei 500 index. We posed three questions in this research study about main banks’ influence on corporate clients’ earnings management. First, does a weakened main bank relationship influence corporate clients’ financial reporting quality? Second, does Japan’s firewall deregulation influence firms’ earnings quality? Finally, does the relationship between accounting firms and main banks affect client firms’ earnings quality? Our main findings were that main banks are not related to client firms’ earnings management; however, main banks mitigate client firms’ earnings management after firewall deregulation. On the other hand, firewall deregulation does motivate firms to manipulate their earnings management. Finally, using Pong and Kita’s (2006) study as a framework, we found that main banks and client firms using the same accounting firms had no influence on earnings management. Based on these evidences presented, our findings suggest that the quality of corporate clients’ financial reporting changes before and after firewall deregulation.
Journal: Applied Economics
Pages: 2166-2178
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234698
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234698
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Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2166-2178
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Author-Name: María Rosalía Vicente
Author-X-Name-First: María Rosalía
Author-X-Name-Last: Vicente
Author-Name: Paul Rappoport
Author-X-Name-First: Paul
Author-X-Name-Last: Rappoport
Author-Name: Andy Banerjee
Author-X-Name-First: Andy
Author-X-Name-Last: Banerjee
Title: A contribution on the nature and treatment of missing data in large market surveys
Abstract:
Nonresponse (or missing data) is often encountered in large-scale surveys. To enable the behavioural analysis of these data sets, statistical treatments are commonly applied to complete or remove these data. However, the correctness of such procedures critically depends on the nature of the underlying missingness generation process. Clearly, the efficacy of applying either case deletion or imputation procedures rests on the unknown missingness generation mechanism. The contribution of this article is twofold. The study is the first to propose a simple sequential method to attempt to identify the form of missingness. Second, the effectiveness of the tests is assessed by generating (experimentally) nine missing data sets by imposed missing completely at random, missing at random and not missing at random processes, with data removed.
Journal: Applied Economics
Pages: 2179-2187
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234699
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234699
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Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2179-2187
Template-Type: ReDIF-Article 1.0
Author-Name: Mamit Deme
Author-X-Name-First: Mamit
Author-X-Name-Last: Deme
Author-Name: Estrella R. Ndrianasy
Author-X-Name-First: Estrella R.
Author-X-Name-Last: Ndrianasy
Title: Trade-creation and trade-diversion effects of regional trade arrangements: low-income countries
Abstract:
Although the number of regional trade arrangements (RTAs) among the lowest-income developing countries is surging, the literature on their welfare effects is still scarce, and the few that exist fail to provide conclusive results. Furthermore, these RTAs are dominated by countries with a small share of total exports destined for intraregional trade flows. Our study focuses on the welfare effects of RTAs (pertaining to trade creation and trade diversion) among this group of countries. We use a theoretically justified gravity model to estimate welfare effects, focusing on trade creation and trade diversion and deviating from the norm in related studies, accounting for heterogeneity in third countries. Using ECOWAS as a sample, we estimate welfare effects on 1992–2012 annual bilateral imports for 14 countries from 169 countries. Contrary to conventional expectations in the literature, we find that economic integration among small and relatively low-income countries that have a small share of total trade with each other is welfare-improving for the members as a group, for the majority of the individual member countries, and for some third countries. Accounting for heterogeneity in third countries reveals that an RTA among low-income countries has a particularly robust trade-creation effect.
Journal: Applied Economics
Pages: 2188-2202
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234700
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234700
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Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2188-2202
Template-Type: ReDIF-Article 1.0
Author-Name: Eunhee Lee
Author-X-Name-First: Eunhee
Author-X-Name-Last: Lee
Author-Name: Doo Bong Han
Author-X-Name-First: Doo Bong
Author-X-Name-Last: Han
Author-Name: Rodolfo M. Nayga
Author-X-Name-First: Rodolfo M.
Author-X-Name-Last: Nayga
Title: A common factor of stochastic volatilities between oil and commodity prices
Abstract:
This article analyses the multivariate stochastic volatilities (SVs) with a common factor influencing volatilities in the prices of crude oil and agricultural commodities, used for both biofuel and nonbiofuel purposes. Modelling the volatility is crucial because the volatility is an important variable for asset allocation, risk management and derivative pricing. We develop a SV model comprising a latent common volatility factor with two asymptotic regimes with a smooth transition between them. In contrast to conventional volatility models, SVs are generated by the logistic transformation of latent factors, which comprise two components: the common volatility factor and an idiosyncratic component. We present a SV model with a common factor for oil, corn and wheat from 8 August 2005 to 10 October 2014, using a Markov chain Monte Carlo method to estimate the SVs and extract the common volatility factor. We find that the volatilities of oil and grain markets are persistent. According to the estimated common volatility factor, high volatility periods match the 2007–2009 recession and the 2007–2008 financial crisis quite well. Finally, the extracted common volatility factor exhibits a distinct pattern.
Journal: Applied Economics
Pages: 2203-2215
Issue: 22
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234701
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234701
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Handle: RePEc:taf:applec:v:49:y:2017:i:22:p:2203-2215
Template-Type: ReDIF-Article 1.0
Author-Name: Karim Badr
Author-X-Name-First: Karim
Author-X-Name-Last: Badr
Author-Name: Reham Rizk
Author-X-Name-First: Reham
Author-X-Name-Last: Rizk
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: Firm productivity and agglomeration economies: evidence from Egyptian data
Abstract:
This paper attempts to shed the light on the nexus between firms’ productivity and economies of agglomeration in Egypt. Using a large dataset of firms in 342 firms’ four-digit activities in 27 regions (62,108 firms), we introduce three measures of agglomeration which are urbanization or firm diversification measured by the number of firms by governorate, localization and specialization measured by the average productivity by governorate and sector (generating externalities and knowledge spillovers) and finally competition measured by the number of firm operating in the same governorate and the same sector. We find strong evidence for the existence of agglomeration in Egypt after controlling for firm age, location, economic activity and legal status. In the Egyptian context, productivity spillovers gained from agglomeration measures outweighed the negative effects of competition implied by congestion. The latter is chiefly due to the lack of good infrastructure. When regressions are run by firm size, location and activity, our main findings show first that micro and small firms are more likely to benefit from localization and diversification compared to medium and large firms. Service firms benefit more from high level of diversification while manufacturing firms gain more benefits from knowledge spillovers and specialization in Egypt.
Journal: Applied Economics
Pages: 5528-5544
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1613506
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613506
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Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5528-5544
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin Schalembier
Author-X-Name-First: Benjamin
Author-X-Name-Last: Schalembier
Author-Name: Brent Bleys
Author-X-Name-First: Brent
Author-X-Name-Last: Bleys
Author-Name: Luc Van Ootegem
Author-X-Name-First: Luc
Author-X-Name-Last: Van Ootegem
Author-Name: Elsy Verhofstadt
Author-X-Name-First: Elsy
Author-X-Name-Last: Verhofstadt
Title: How relative income affects work hours preferences
Abstract:
In this article, we look at explanations for why people want to change their working hours. We focus on the role of income and differentiate between the effect of household income, personal income and self-perceived relative income. Using Flemish data on 1435 workers, we perform binary logistic regressions in which we compare those who are over- or underemployed with those who are currently working their preferred number of hours. Our results show that the desire to work fewer hours is mostly related to a bad work–life balance, while the wish to increase working hours is associated with relative income rather than absolute income. Based on our findings we recommend governments to not only focus on increasing flexibility at the individual level but to also consider these positional effects by taking measures (e.g. decreasing the duration of the standard working week) at the population level.
Journal: Applied Economics
Pages: 5545-5558
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1613512
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613512
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Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5545-5558
Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Richard O. Olayeni
Author-X-Name-First: Richard O.
Author-X-Name-Last: Olayeni
Author-Name: Sodik Adejonwo Olofin
Author-X-Name-First: Sodik Adejonwo
Author-X-Name-Last: Olofin
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: The Indian inflation–growth relationship revisited: robust evidence from time–frequency analysis
Abstract:
This article re-visits the inflation–growth nexus in India using the tools of wavelet, i.e. wavelet correlation, wavelet cross-correlation and scale by scale Granger causality test. Wavelet cross-correlation analysis shows that at the shortest scales inflation and economic growth were independent; at medium scales, there exists feedback effect; and at higher scales, only economic growth is leading to inflation. Furthermore, we find: (a) high and increasing dependence between inflation and economic growth, particularly after mid-2002; (b) high-frequency components of economic growth Granger-cause low-frequency component of CPI-based inflation and vice-versa, and at all scales economic growth Granger-cause inflation at scales of 4–6 and no evidence of causality was detected from WPI-based inflation to economic growth; (c) results indicate that there is no long-run causal link between inflation and economic growth. This study presents new insights for policymakers to sustain economic development by using inflation as an economic tool in India.
Journal: Applied Economics
Pages: 5559-5576
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616065
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616065
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Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5559-5576
Template-Type: ReDIF-Article 1.0
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Frederico Silva Leal
Author-X-Name-First: Frederico Silva
Author-X-Name-Last: Leal
Title: Fiscal multipliers in the Eurozone: an SVAR analysis
Abstract:
We compute the value of fiscal multipliers (for government primary expenditure, Income and wealth taxes and for Production and import taxes) in the Eurozone countries since the creation of the currency union (2000Q1-2016Q4), in order to understand how the values can vary according to the public debt level, the pace of economic growth, and the output gap. Imposing quarterly fiscal shocks, the results showed that government expenditure had a positive effect on output, with an annual accumulated multiplier of 0.44, whereas tax multipliers presented negative signs: the Income and wealth and the Production and import taxes stood at −0.11 and −0.55, respectively. Furthermore, the spending multiplier showed a higher value for countries with lower levels of public debt, during recessions, and in countries with negative output gaps. On the other hand, tax shocks seemed to be recessive in highly indebted countries and those facing positive output gaps.
Journal: Applied Economics
Pages: 5577-5593
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616068
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616068
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Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5577-5593
Template-Type: ReDIF-Article 1.0
Author-Name: Dae-Yong Ahn
Author-X-Name-First: Dae-Yong
Author-X-Name-Last: Ahn
Title: How store format choices and market structure affect agglomeration economies and competition among chain stores in the US supermarket industry
Abstract:
This article studies how store format choices and market concentration affect agglomeration economies and competition among chain stores. Using data on supermarket chains in Arizona, Georgia and Illinois, we decompose a store’s sales into parts stemming from local market conditions, such as demographics, and parts stemming from competition measures, which can be of its own chain’s stores or of other chains’ stores. Our results show that local market conditions are still a key factor in generating store sales. In more concentrated markets of Georgia and Illinois, a supermarket chain suffers from business-stealing among its own stores – agglomeration economies not sufficient to offset competition among its stores – but ironically tolerates the presence of other chains’ stores. Can a retail chain favourably tip the balance of agglomeration economies and competition? We find the answer by looking at the two big corporations in Arizona – Bashas Markets Inc. and Kroger Co. – which own two and three store formats, respectively, catering to distinct consumer segments, and thus promoting agglomeration economies while minimizing competition among their own stores.
Journal: Applied Economics
Pages: 5594-5608
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616069
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616069
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Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5594-5608
Template-Type: ReDIF-Article 1.0
Author-Name: Yasemin Ozturk
Author-X-Name-First: Yasemin
Author-X-Name-Last: Ozturk
Author-Name: Tekin Kose
Author-X-Name-First: Tekin
Author-X-Name-Last: Kose
Title: Health, time allocation and work: empirical evidence from Turkey
Abstract:
This article investigates the relationship between health status and time allocation decisions of individuals. Although many studies address impacts of health on labour supply, few studies explore associations of health status with non-market work activities. Using a nationally representative sample from a recent Turkish Time Use Survey, this article employs Seemingly Unrelated Regression (SUR) framework to estimate multiple equations of various time use categories. Consistent with literature, empirical results indicate that higher levels of self-reported health status (SRHS) are associated with more time spent in market work. However, better health level is negatively correlated with time spent in leisure and sleep. There is mixed evidence between self-reported health status (SRHS) and time spent on non-market work. There is a negative weak association between health and time devoted to personal care. Finally, demographics such as gender, age, education and marital status display correlations with time allocation of Turkish individuals.
Journal: Applied Economics
Pages: 5609-5622
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616070
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616070
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Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5609-5622
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Hanoma
Author-X-Name-First: Ahmed
Author-X-Name-Last: Hanoma
Author-Name: Dieter Nautz
Author-X-Name-First: Dieter
Author-X-Name-Last: Nautz
Title: The information content of market-based measures for the long-term inflation expectations of professionals: evidence from a midas analysis
Abstract:
Long-term inflation expectations taken from the Survey of Professional Forecasters are a major source of information for monetary policy. Unfortunately, they are published only on a quarterly basis. This article investigates the daily information content of market-based measures, such as inflation-linked swaps and breakeven inflation rates, for the next survey outcome. Using a mixed data sampling approach, we find that professionals account for the daily dynamics of market-based measures when they submit their long-term inflation expectations. We propose a daily indicator of professionals’ inflation expectations that outperforms alternative indicators that ignore the high-frequency dynamics of market-based measures. To illustrate the usefulness of the new indicator, we provide new evidence on the (re-)anchoring of U.S. inflation expectations.
Journal: Applied Economics
Pages: 5623-5636
Issue: 51
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616071
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616071
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Handle: RePEc:taf:applec:v:51:y:2019:i:51:p:5623-5636
Template-Type: ReDIF-Article 1.0
Author-Name: Sanket Mohapatra
Author-X-Name-First: Sanket
Author-X-Name-Last: Mohapatra
Author-Name: Manabu Nose
Author-X-Name-First: Manabu
Author-X-Name-Last: Nose
Author-Name: Dilip Ratha
Author-X-Name-First: Dilip
Author-X-Name-Last: Ratha
Title: Determinants of the distance between sovereign credit ratings and sub-sovereign bond ratings: Evidence from emerging markets and developing economies
Abstract:
This article explores factors that affect the distance between sovereign credit ratings and the ratings assigned to new foreign-currency bonds issued by sub-sovereign entities (such as private non-financial corporations, financial firms, and public sector enterprises) in 47 emerging markets and developing economies. Censored and double-hurdle regression models are used to estimate the relative contributions of bond-level, issuer-level, and macroeconomic factors that determine this distance, separately for those rated at or below the sovereign rating and those rated above. For the three quarters or more of sub-sovereign bond ratings that are constrained by the sovereign rating ceiling, a Tobit regression model shows a smaller distance – suggesting stronger sovereign–corporate linkages – for public sector enterprises and financial firms relative to other firms. Riskier global financial conditions are also associated with sub-sovereign bonds being rated closer to the sovereign rating. For the small number of sub-sovereign bonds rated higher than the sovereign rating, a double-hurdle model shows that certain debt features – such as bonds backed by future-flow receivables or other collateral or structured as Special Purpose Vehicles (SPV) – significantly raise the likelihood of piercing the sovereign rating ceiling and also increase the distance above the sovereign ceiling.
Journal: Applied Economics
Pages: 934-956
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346364
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346364
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Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:934-956
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel J. Tulloch
Author-X-Name-First: Daniel J.
Author-X-Name-Last: Tulloch
Author-Name: Ivan Diaz-Rainey
Author-X-Name-First: Ivan
Author-X-Name-Last: Diaz-Rainey
Author-Name: I.M Premachandra
Author-X-Name-First: I.M
Author-X-Name-Last: Premachandra
Title: The impact of regulatory change on EU energy utility returns: the three liberalization packages
Abstract:
The European Union’s (EU) energy sector is changing due to major policy reforms. In this article, we examine the impact of major legislative changes which were designed to induce competition in the energy sector: the three liberalization packages. Competition was expected to benefit the industry by phasing out inefficient firms. EU citizens were also expected to benefit as competition was likely to promote a more efficient energy sector and more consumer choice of energy products and services. However, this legislative change occurred during a period of extreme market turmoil. We examine the impact of all these changes on the risk profile of the sector. Our results show that the liberalization legislation significantly increased systematic risk exposure of the sector, reducing its role as a defensive investment asset. We also show that commodities had relatively little impact on sector returns, but this was expected as utilities can offset commodity risk in hedging markets. We compare our results to those obtained in neighbouring EU sectors and find the impacts are isolated to the energy sector. This article makes a major contribution to energy policy by empirically showing the change in risk as a result of sector liberalization.
Journal: Applied Economics
Pages: 957-972
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346366
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346366
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Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:957-972
Template-Type: ReDIF-Article 1.0
Author-Name: Kerry B Hudson
Author-X-Name-First: Kerry B
Author-X-Name-Last: Hudson
Author-Name: Joaquin Vespignani
Author-X-Name-First: Joaquin
Author-X-Name-Last: Vespignani
Title: Understanding the deviation of Australian policy rate from the Taylor rule
Abstract:
This investigation aims to explain and quantify the deviations of the Australian policy rate (set by Reserve Bank of Australia) from the Taylor Rule. A three-step econometric procedure designed to reflect the data-rich environment in which central banks operate is proposed using information for 229 macroeconomic series. This procedure can be applied to data for any economy with inflation targeting monetary rule. Our application with Australian data shows that approximately 65% of Australia’s policy rate deviation from the Taylor Rule can be explained systematically, with international factors and a domestic factor accounting for 41.9% and 22.5%, respectively, of the total variation in deviation from the rule.
Journal: Applied Economics
Pages: 973-989
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346367
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346367
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Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:973-989
Template-Type: ReDIF-Article 1.0
Author-Name: Sena Durguner
Author-X-Name-First: Sena
Author-X-Name-Last: Durguner
Title: Variations in farm consumption and their relationship to income: an empirical investigation of Illinois farm households
Abstract:
Empirical tests of household consumption have yielded mixed results regarding the validity of the life cycle/permanent income (LCPI) hypothesis. A significant problem with such studies is the difficulty in finding sufficient micro-level data on household expenditures. By using the recent rich quantity of such data in the Farm Business Farm Management (FBFM) data for Illinois farms from 1995 to 2009, the study reported here for farm households should provide more consistent results regarding the LCPI hypothesis. Applying an empirical model based on the LCPI hypothesis, this article identifies the determinants of farm consumption and the relationship to income. This study provides evidence that current income changes are not significant in explaining the consumption changes of farm households, thus supporting the LCPI hypothesis for farm households.
Journal: Applied Economics
Pages: 990-1005
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349286
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349286
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Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:990-1005
Template-Type: ReDIF-Article 1.0
Author-Name: Gary D. Ferrier
Author-X-Name-First: Gary D.
Author-X-Name-Last: Ferrier
Author-Name: Hervé Leleu
Author-X-Name-First: Hervé
Author-X-Name-Last: Leleu
Author-Name: Vivian G. Valdmanis
Author-X-Name-First: Vivian G.
Author-X-Name-Last: Valdmanis
Author-Name: Michael Vardanyan
Author-X-Name-First: Michael
Author-X-Name-Last: Vardanyan
Title: A directional distance function approach for identifying the input/output status of medical residents
Abstract:
Previous empirical studies examining the impact medical residents have on hospital productivity have made a priori assumptions about whether medical residents are inputs (labour providing patient care) or outputs (students receiving mandatory training under the supervision of an attending physician) when specifying their estimating equations. We shed light on the role medical residents play in hospital production by using a data-driven parametric approach based on the directional technology distance function. Our primary goal is to assess the extent to which one of the two roles of medical residents empirically dominates the other and to see whether the role varies across different types of hospital. Using the American Hospital Association data from 1994 to 2010, we find that residents are inputs in all rural and public non-teaching hospitals, but they are outputs in urban-area not-for-profit teaching hospitals. We also demonstrate that the status of residents is related to the case-mix index and can vary with hospital size.
Journal: Applied Economics
Pages: 1006-1021
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349287
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349287
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Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:1006-1021
Template-Type: ReDIF-Article 1.0
Author-Name: Zijun Luo
Author-X-Name-First: Zijun
Author-X-Name-Last: Luo
Author-Name: Xu Tian
Author-X-Name-First: Xu
Author-X-Name-Last: Tian
Title: Can China’s meat imports be sustainable? A case study of mad cow disease
Abstract:
Rising demand and constrained domestic production have challenged the meat consumption in China. To fill the gap between domestic demand and supply, China imports an increasing volume of meat products from the international market. However, outbreaks of animal diseases can jeopardize China’s ability to meet its need for consumable meat. This article investigates the impact of animal disease outbreaks on the sustainability of China’s meat imports by using the episode of bovine spongiform encephalopathy in the United States in 2003 as a case study. Our results show that China’s meat imports are becoming more diversified and sustainable. The outbreak did have significant negative impacts on beef imports from the United States. During the epidemic, not only was China able to increase beef imports from other major exporters, but it also increased imports of other animal products such as edible offal and pork. Our findings indicate that international trade can serve as a reliable source to meet China’s soaring meat consumption.
Journal: Applied Economics
Pages: 1022-1042
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349288
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349288
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Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:1022-1042
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Thomson
Author-X-Name-First: Daniel
Author-X-Name-Last: Thomson
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: Attribution of hedge fund returns using a Kalman filter
Abstract:
Hedge funds offer attractive investment possibilities because they engage in investment styles and opportunity sets which – because they are different from traditional asset class funds – generate different risk exposures. Conventional wisdom holds that hedge funds add value and provide unique investment opportunities because of their ability to invest in disparate risk exposures, and via the manager’s skill in selecting stocks and timing the market. In this article, a Kalman filter is used to decompose the time series of hedge fund returns into market timing and stock selection factors to establish whether fund managers really do generate statistically significant abnormal profits. Compelling evidence supports an alternative interpretation for the market timing return constituent. This work represents the first time the Kalman filter has been used to extract a time series of the capital asset pricing model’s dynamic variables for determining return component magnitudes.
Journal: Applied Economics
Pages: 1043-1058
Issue: 9
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1349290
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349290
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Handle: RePEc:taf:applec:v:50:y:2018:i:9:p:1043-1058
Template-Type: ReDIF-Article 1.0
Author-Name: Maneka Jayasinghe
Author-X-Name-First: Maneka
Author-X-Name-Last: Jayasinghe
Author-Name: Shyama Ratnasiri
Author-X-Name-First: Shyama
Author-X-Name-Last: Ratnasiri
Author-Name: Christine Smith
Author-X-Name-First: Christine
Author-X-Name-Last: Smith
Author-Name: Andreas Chai
Author-X-Name-First: Andreas
Author-X-Name-Last: Chai
Title: Domestic technology, consumption economies of scale and poverty: evidence from Sri Lanka
Abstract:
While it is well known that new technologies enhance consumer welfare, the manner in which these technologies impact the ability to realize economies of scale in consumption is not well understood. We use Sri Lankan household data to examine how the adoption of new technologies by households positively impacts their ability to achieve household economies of scale. This suggests that new technologies not only deliver a greater variety of consumption goods to consumers, but they may also play an important role in enabling large households to escape poverty by lowering the per-capita costs of maintaining a given standard of living. Given the importance of consumption economies of scale in the measurement of poverty, this study provides some insights on the extent to which the number of poor households changes when food consumption scale economies due to technology adoption in the domestic sphere are incorporated.
Journal: Applied Economics
Pages: 1777-1789
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374540
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374540
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Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1777-1789
Template-Type: ReDIF-Article 1.0
Author-Name: Jason Hecht
Author-X-Name-First: Jason
Author-X-Name-Last: Hecht
Title: Research and development and labour productivity: do high-tech firms exhibit labour- or capital-saving technical change?
Abstract:
Employment and output in the advanced technology sectors have generally exhibited above-average growth for more than two decades. While this industry accounts for a relatively small share of total employment, the majority of private sector research and development (R&D) expenditures in the US is concentrated within seven sub-sectors. However, little attention has been paid as to whether high-tech productivity exhibits Hicksian capital or labour ‘savings’ bias or tendency to displace either factor input over time. Biased technical change can occur as economies transition between growth regimes. An augmented production function is employed to analyse the additional impact of R&D activity on firm-level labour productivity. A panel data set comprised of high-tech firms located across the advanced economies, China and India from 1990 to 2013 is used in the analysis. Labour-saving technical change was present across the advanced technology sectors and most countries. The expanded models of labour productivity that used fixed effects with lagged regressors confirmed the prior results as well as finding that R&D per employee, relative R&D intensity and firm market share contribute to firm-level labour productivity growth across countries and sectors. Additional support was found for diminishing returns to scale but not for R&D spillover effects.
Journal: Applied Economics
Pages: 1790-1811
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374541
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374541
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Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1790-1811
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Lüdering
Author-X-Name-First: Jochen
Author-X-Name-Last: Lüdering
Title: Standing and ‘survival’ in the adult film industry
Abstract:
It is conventional wisdom that knowing the right people is essential for one’s career. This claim is supported in the literature on social capital. However, the empirical evidence in this field remains ambiguous. While the literature recognizes that ‘connections’ help finding any job at all, it remains unclear if long-term benefits exist. In contrast to other industries, collaborations between performers in adult films are easily observed. Consequently, a collaborative network can be constructed which serves as an input in order to estimate the effect of a person’s centrality on individual success. Unfortunately, success is not easily observed either. Hence, in this manuscript, the survival in the industry is used as a proxy for professional success. This assumption is justified by the economic argument that, in the absence of lock-in effects, performers will remain in the industry as long as it remains profitable. The profitability does not only depend on monetary aspects but also includes costs from social stigma and adverse effects on health and mental well-being. Using a combination of network analysis and duration models, the results indicate that there is a strong correlation between network centrality and survival in the adult film industry.
Journal: Applied Economics
Pages: 1812-1823
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374542
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374542
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Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1812-1823
Template-Type: ReDIF-Article 1.0
Author-Name: Jerrod Penn
Author-X-Name-First: Jerrod
Author-X-Name-Last: Penn
Author-Name: Wuyang Hu
Author-X-Name-First: Wuyang
Author-X-Name-Last: Hu
Title: Euthanizing value of a statistical life: monetizing differences in public perception and alternatives
Abstract:
There is some controversy associated with the language describing monetary values for changes in health or mortality risks, especially the term ‘value of a statistical life’ (VSL). We investigate if the general public distinguishes differences in language describing the concept of VSL using four different descriptive treatments. Based on a survey of willingness to accept (WTA) in which individuals receive payment to participate in a future study, results show that the general public does not perceive a difference in the language used to describe changes in risks. This suggests that public objections to the VSL may not be caused by the specific description used nor can be ameliorated by refinement. Further, the results alleviate concern that language chosen may affect respondent participation and welfare estimates. Because of its apparent absence in the literature, we also adapt and demonstrate a non-parametric conservative estimate of WTA.
Journal: Applied Economics
Pages: 1824-1836
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374543
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374543
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Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1824-1836
Template-Type: ReDIF-Article 1.0
Author-Name: Samantha Bielen
Author-X-Name-First: Samantha
Author-X-Name-Last: Bielen
Author-Name: Wim Marneffe
Author-X-Name-First: Wim
Author-X-Name-Last: Marneffe
Title: Testing the lawyer-induced litigation hypothesis in Europe
Abstract:
Utilizing a European panel dataset, we contribute to the scant empirical literature on the lawyer-induced litigation hypothesis. To address endogeneity problems that arise when estimating the effect of the number of lawyers on civil litigation rates, we use two strategies. We first estimate our model by means of the 2SLS procedure. Second, we exploit the instrumental variable approach based on the linear GMM estimator of Arellano and Bond. The estimations result in a positive and significant effect of lawyers that is robust across the different model specifications and estimation methods in which we address endogeneity. In criminal litigation, where lawyers cannot induce demand, we find no such positive relation between lawyers and litigation.
Journal: Applied Economics
Pages: 1837-1851
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1374544
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374544
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Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1837-1851
Template-Type: ReDIF-Article 1.0
Author-Name: Huy Nguyen Anh Pham
Author-X-Name-First: Huy Nguyen Anh
Author-X-Name-Last: Pham
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Imad Moosa
Author-X-Name-First: Imad
Author-X-Name-Last: Moosa
Author-Name: Leslie Moyan
Author-X-Name-First: Leslie
Author-X-Name-Last: Moyan
Title: The wealth effect and diamond risk structure of financial regulation
Abstract:
The objective of this article was to evaluate the effect of announcements of financial regulation on risk and return in the Vietnamese equity market. The techniques used for the purpose of analysing risk and return include event study and non-parametric tests, as well as asset pricing models supplemented with interaction variables and a variety of ARCH-like specifications such as GARCH, TARCH, EGARCH and PARCH. We find evidence for the wealth effect, the presence of delayed response and a risk shifting behaviour in the form of diamond risk structure. Our results show that abnormal returns are present around the announcements of operating rules and other stock market regulations. Abnormal returns can also be obtained after considering legal documents such as circulars and decisions.
Journal: Applied Economics
Pages: 1852-1865
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380287
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380287
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Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1852-1865
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Siranova
Author-X-Name-First: Maria
Author-X-Name-Last: Siranova
Author-Name: M. Workie Tiruneh
Author-X-Name-First: M. Workie
Author-X-Name-Last: Tiruneh
Title: Exploding net errors and omissions as a capital flight phenomenon: the case of Slovakia
Abstract:
This article empirically explores determinants of net errors and omissions (NEO) of Slovakia during the 1997–2014 period, with emphasis on the 2008–2014 sub-period when a distinct downturn in the NEO time series is observed. Given the statistically significant link between the evolution of foreign direct investments and NEO, we cannot rule out possible prevalence of tax optimization as a part of capital flight phenomenon in developed countries. Our findings also suggest that services sector plays a pivotal role in determining the adverse NEO development in the post-2008 period. However, given the absence of detailed bidirectional data for trade with services, role of misinvoicing practices in the Slovak balance of payments statistics might not be further investigated. Our results further strengthen the call for a deeper understanding of forces driving the NEO evolution in other developed and developing countries suffering from capital flight phenomenon.
Journal: Applied Economics
Pages: 1866-1884
Issue: 16
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380288
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380288
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Handle: RePEc:taf:applec:v:50:y:2018:i:16:p:1866-1884
Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Mauck
Author-X-Name-First: Nathan
Author-X-Name-Last: Mauck
Author-Name: Stephen W. Pruitt
Author-X-Name-First: Stephen W.
Author-X-Name-Last: Pruitt
Title: The valuation of patents using third-party data: the Ocean Tomo 300 Patent Index
Abstract:
This study is the first investigation of the ability of the financial marketplace to value patent assets via exploiting the informational content of a widely quoted stock market patent index known as the Ocean Tomo 300 Patent Index (OT 300). The results suggest that the OT 300 ‘works,’ in the sense that the index generates buy-and-hold returns economically and statistically in excess of those of the market as a whole as well as a specially created 300-firm benchmark portfolio composed of other very liquid patent-holding firms.
Journal: Applied Economics
Pages: 3995-3998
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150947
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150947
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Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:3995-3998
Template-Type: ReDIF-Article 1.0
Author-Name: Lumengo Bonga-Bonga
Author-X-Name-First: Lumengo
Author-X-Name-Last: Bonga-Bonga
Author-Name: Ekerete Umoetok
Author-X-Name-First: Ekerete
Author-X-Name-Last: Umoetok
Title: The effectiveness of index futures hedging in emerging markets during the crisis period of 2008-2010: Evidence from South Africa
Abstract:
This article provides an assessment of the comparative effectiveness of four econometric methods in estimating the optimal hedge ratio in an emerging equity market, particularly the South African equity and futures markets. The article bases the effectiveness of hedging on volatility reduction and minimization of the coefficient of variation of hedged returns as well as risk-aversion-based utility maximization. The empirical analysis shows that the vector error-correction method and multivariate generalized autoregressive conditional heteroscedasticity methods are most effective over relatively long horizon, weekly and monthly hedging periods.
Journal: Applied Economics
Pages: 3999-4018
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150948
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150948
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Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:3999-4018
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Jim M. Mariano
Author-X-Name-First: Marc Jim M.
Author-X-Name-Last: Mariano
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Title: Forecasting development outcomes under alternative surplus labour assumptions
Abstract:
Economic forecasts are useful to policymakers both as aids to planning, and as baselines against which counterfactual scenarios can be compared. However, policy makers should be aware that assumptions relating to model structure can influence forecast results. We explore the sensitivity of forecasts to one aspect of model structure important in modelling developing economies: surplus agricultural labour. We outline a framework for modelling surplus agricultural labour that relies on average product remuneration. We embed this within a model of a developing economy (the Philippines) characterized by surplus agricultural labour. We compare the results of two forecasts that differ in their treatment of the agricultural labour market. In the first, the surplus labour theory is activated, establishing average product remuneration in agriculture. In the second, the surplus labour theory is not activated, creating a failure to recognize average product remuneration in agriculture. By comparing the two simulations, we show that failure to model the presence of average product remuneration, when it would be appropriate to do so, has an impact that would be material to economic planners, leading them to: under-estimate agricultural employment; over-estimate GDP growth; and, over-estimate important policy variables (like tax revenue) that are related to GDP growth.
Journal: Applied Economics
Pages: 4019-4032
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150949
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150949
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Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4019-4032
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Youssef El-Khatib
Author-X-Name-First: Youssef
Author-X-Name-Last: El-Khatib
Title: An extension of the asymmetric causality tests for dealing with deterministic trend components
Abstract:
This article extends the asymmetric causality tests, as developed by Hatemi-J (2012), for dealing with deterministic trend parts. It is shown how integrated variables up to three degrees with deterministic trend parts can be transformed into positive and negative cumulative partial components. These cumulative components can be used for implementing the asymmetric causality tests based on a Wald test statistic that is shown to follow a chi-square distribution asymptotically. Each solution is expressed as a proposition and a mathematic proof is provided for each underlying proposition. This issue is important because most economic or financial variables seem to be characterized by both stochastic as well as deterministic trend parts. An empirical application is provided in order to show how the oil prices and the exchange rates as integrated variables with drift and trend can be transformed into cumulative partial sums of positive and negative components. The conducted causality tests reveal that allowing for asymmetry has important repercussions for the underlying causal inference between these two variables.
Journal: Applied Economics
Pages: 4033-4041
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150950
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150950
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Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4033-4041
Template-Type: ReDIF-Article 1.0
Author-Name: José Félix Sanz-Sanz
Author-X-Name-First: José Félix
Author-X-Name-Last: Sanz-Sanz
Author-Name: Juan Manuel Castañer-Carrasco
Author-X-Name-First: Juan Manuel
Author-X-Name-Last: Castañer-Carrasco
Author-Name: Desiderio Romero-Jordán
Author-X-Name-First: Desiderio
Author-X-Name-Last: Romero-Jordán
Title: Consumption tax revenue and personal income tax: analytical elasticities under non-standard tax structures
Abstract:
This article models the elasticity of consumption taxation faced with changes in disposable income. Its calculation makes clear the importance of the design of the personal income tax and of the changes caused to the consumption of taxpayers. The modelling is performed for both individual taxpayers and the population as a whole.
Journal: Applied Economics
Pages: 4042-4050
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150951
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150951
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Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4042-4050
Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Feito-Ruiz
Author-X-Name-First: Isabel
Author-X-Name-Last: Feito-Ruiz
Author-Name: Clara Cardone-Riportella
Author-X-Name-First: Clara
Author-X-Name-Last: Cardone-Riportella
Author-Name: Susana Menéndez-Requejo
Author-X-Name-First: Susana
Author-X-Name-Last: Menéndez-Requejo
Title: Reverse takeover: the moderating role of family ownership
Abstract:
The aim of this study was to analyse the determinants of reverse takeovers, examining the influence of target firm shareholders’ type in the agreement. We examine reverse takeovers implemented in the Alternative Investment Market between 1999 and 2012, paying special attention to the differences between family and non-family target firms, as well as the impact of the financial crisis.We propose that family firms have a lower probability of accepting a reverse takeover (‘shell’ firm), to avoid both diluting the ownership structure (loss of control) and new shareholders entering their firm. Our main findings show that the higher the percentage of ownership held by family holders, the lower the probability of their being the target firm in a reverse takeover. This effect is maintained during the crisis period, in accordance with the expectation that family firms will have fewer financial constraints.
Journal: Applied Economics
Pages: 4051-4065
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150952
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150952
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Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4051-4065
Template-Type: ReDIF-Article 1.0
Author-Name: W. Heynderickx
Author-X-Name-First: W.
Author-X-Name-Last: Heynderickx
Author-Name: J. Cariboni
Author-X-Name-First: J.
Author-X-Name-Last: Cariboni
Author-Name: W. Schoutens
Author-X-Name-First: W.
Author-X-Name-Last: Schoutens
Author-Name: B. Smits
Author-X-Name-First: B.
Author-X-Name-Last: Smits
Title: The relationship between risk-neutral and actual default probabilities: the credit risk premium
Abstract:
The study investigates empirically the relationship between the risk-neutral measure Q and the real-world measure P. We study the ratio between the risk-neutral and actual default intensities, which we call the coverage ratio or the relative credit risk premium. Actual default intensities are derived from rating agencies annual transition matrices, while risk-neutral default intensities are bootstrapped from CDS quotes of European corporates. We quantify the average risk premium and its changes over time. Compared to related literature, special attention is given to the effects of the recent financial and European sovereign crises. We find that average credit risk premia rose substantially and that post-crisis levels are still higher than those observed before the financial crisis. This observation is especially true for high-quality debt and if it persists, it will have an impact on corporates funding costs. The quantification and revision of risk premia contributes to the discussion of the credit spread puzzle and could give extra insights in valuation models that start from real-world estimates. Our work is furthermore important in the context of state aid assessment. The real economic value (REV) methodology, applied by the European Commission to evaluate impaired portfolios, is based on a long-term average risk premium.
Journal: Applied Economics
Pages: 4066-4081
Issue: 42
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150953
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150953
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Handle: RePEc:taf:applec:v:48:y:2016:i:42:p:4066-4081
Template-Type: ReDIF-Article 1.0
Author-Name: Regan Deonanan
Author-X-Name-First: Regan
Author-X-Name-Last: Deonanan
Author-Name: Kevin Williams
Author-X-Name-First: Kevin
Author-X-Name-Last: Williams
Title: The effect of remittances on democratic institutions
Abstract:
Do remittances promote stronger democratic institutions in developing countries? We study the effect of workers’ remittances on the quality of democracy in developing countries, and examine how government spending mediates the effect of workers’ remittances on the quality of democratic institutions. Using a dynamic panel estimator on data from 133 developing countries over 1972–2012, we find that workers’ remittances improve the quality of democratic institutions. We also find that workers’ remittances are more effective in promoting democratic institutions in developing countries with low government spending.
Journal: Applied Economics
Pages: 403-416
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200180
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200180
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Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:403-416
Template-Type: ReDIF-Article 1.0
Author-Name: César Alonso-Borrego
Author-X-Name-First: César
Author-X-Name-Last: Alonso-Borrego
Author-Name: Antonio Romero-Medina
Author-X-Name-First: Antonio
Author-X-Name-Last: Romero-Medina
Author-Name: Rocío Sánchez-Mangas
Author-X-Name-First: Rocío
Author-X-Name-Last: Sánchez-Mangas
Title: The impact of public research contracts on scientific productivity
Abstract:
We analyse a competitive research-oriented public programme established in Spain, the Ramon y Cajal Programme, intended to offer contracts in public research centres to high-quality researchers. We study the effects of the programme on the ex post scientific productivity of its recipients, relative to non-granted applicants with comparable curricula at the time of application. The full sample results demonstrate that the programme has a positive and significant effect on the scientific productivity of the recipients, as measured both by the amount of published contribution and by the impact of their publications. Consequently, receiving a contract affects the quantity, but also increases the quality, of the contract recipients’ publications.
Journal: Applied Economics
Pages: 417-432
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200181
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200181
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Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:417-432
Template-Type: ReDIF-Article 1.0
Author-Name: Andrei Shynkevich
Author-X-Name-First: Andrei
Author-X-Name-Last: Shynkevich
Title: Return predictability in emerging equity market sectors
Abstract:
This article investigates the predictive power of technical trading rules in the emerging equity market sector portfolios and finds that trading strategies based on technical indicators significantly outperform the buy-and-hold benchmark. Combination of data snooping bias, data measurement errors in the form of non-synchronicity bias and fluctuations in currency exchange rates is unable to explain the observed outperformance. The introduction of transaction costs tempers the results but technical analysis still possesses significant predictive power for a number of sectors. The performance of technical analysis in the emerging equity market sectors does not conform to historical trends observed in the developed equity markets as well as in the emerging equity markets when broadly diversified portfolios are considered, where predictive power of technical trading rules has been shown to decline over time.
Journal: Applied Economics
Pages: 433-445
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200182
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200182
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Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:433-445
Template-Type: ReDIF-Article 1.0
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Title: Institutional investors and opportunistic seasoned equity offerings in the Korean stock market
Abstract:
This study examines the impact of institutional monitoring on opportunistic seasoned equity offerings (SEOs) in the Korean stock market. With a firm’s accrual quality as a measurement for the degree of information asymmetry between managers and investors, we hypothesize that the managers of firms with poor accrual quality are likely to engage in opportunistic SEOs, but such opportunistic activity is weak in firms strongly monitored by institutional investors. The empirical findings indicate that opportunistic SEOs tend to be deterred by institutional monitoring.
Journal: Applied Economics
Pages: 446-455
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200183
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200183
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Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:446-455
Template-Type: ReDIF-Article 1.0
Author-Name: Golam Sarwar
Author-X-Name-First: Golam
Author-X-Name-Last: Sarwar
Author-Name: Cesario Mateus
Author-X-Name-First: Cesario
Author-X-Name-Last: Mateus
Author-Name: Natasa Todorovic
Author-X-Name-First: Natasa
Author-X-Name-Last: Todorovic
Title: A tale of two states: asymmetries in the UK small, value and momentum premiums
Abstract:
This article performs comparative analysis of the asymmetries in size, value and momentum premium and their macroeconomic determinants over the UK economic cycles, using Markov switching approach. We associate Markov switching regime 1 with economic upturn and regime 2 with economic downturn. We find clear evidence of cyclical variations in the three premiums, most notable being that in the size premium, which changes from positive in expansions to negative in recessions. Macroeconomic indicators prompting such cyclicality the most are variables that proxy credit market conditions, namely the interest rates, term structure and credit spread. Overall, macro factors tend to have more significant impact on the three premiums during economic downturns. The results are robust to the choice of information variable used in modelling transition probabilities of the two-stage Markov switching model. We show that exploiting cyclicality in premiums proves particularly profitable for portfolios featuring small cap stocks in recessions at a feasible level of transaction costs.
Journal: Applied Economics
Pages: 456-476
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200184
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200184
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Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:456-476
Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Using the travel cost method to value visits and stigma in connection with ARV adherence in Uganda
Abstract:
This article uses the travel cost method to value both client visits to collect antiretroviral therapy (ARV) and stigma, which prevents ARV adherence. Using a representative sample for Uganda initiated specifically for this study, we found a willingness to pay (WTP) valuation for visits made in the range of US$14–US$17 and a willingness to accept (WTA) valuation of US$25 for visits missed. The valuations for stigma based on a novel measure of stigma using a new estimation method were close to the valuations for visits. These valuations can be used to estimate the benefits to carry out cost–benefit analyses (CBAs) of interventions aimed at increasing ARV coverage and adherence.
Journal: Applied Economics
Pages: 477-497
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200185
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200185
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Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:477-497
Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Yu Hao
Author-X-Name-First: Yu
Author-X-Name-Last: Hao
Title: Environmental performance, corruption and economic growth: global evidence using a new data set
Abstract:
This study investigates the relationship between environmental performance, corruption and economic growth using panel data of 87 countries covering the period from 2002 to 2012. The Environmental Performance Index is used for the first time to evaluate the environmental quality on economic growth. By employing both ‘static’ and ‘dynamic’ panel models, we find that environmental performance is positively related to economic growth and is more significant in non-Organization for Economic Cooperation Development (OECD) countries. Moreover, when corruption is incorporated, the empirical estimation results indicate that although lower corruption helps economic growth in non-OECD countries, the negative coefficients of the three interactive terms show that the positive effect of environment performance on economic growth will drop, while greater environmental performance combined with natural resource abundance inevitably leads to inefficient bureaucracies and hence disadvantageous economic growth. As a result, policymakers in non-OECD countries should carefully ensure better government quality when they exhibit strong environmental performance so as to avoid any disadvantageous impact upon economic growth.
Journal: Applied Economics
Pages: 498-514
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1200186
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200186
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Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:498-514
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 5
Volume: 49
Year: 2017
Month: 1
X-DOI: 10.1080/00036846.2016.1226062
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226062
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Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: Luca Vincenzo Ballestra
Author-X-Name-First: Luca Vincenzo
Author-X-Name-Last: Ballestra
Author-Name: Graziella Pacelli
Author-X-Name-First: Graziella
Author-X-Name-Last: Pacelli
Author-Name: Davide Radi
Author-X-Name-First: Davide
Author-X-Name-Last: Radi
Title: Valuing investment projects under interest rate risk: empirical evidence from European firms
Abstract:
In this article, we perform an empirical investigation of the effect of the interest rate uncertainty on the valuation of investment projects. The analysis is carried out by employing a real option approach and by considering a set of firms that operate in various production sectors in the euro area. In particular, the revenues generated by the investment projects are modelled using a geometric Brownian motion, whereas the interest rate is specified as a stochastic process of Vasicek type. Moreover, using the volatility of the equity return as a proxy, the volatility of the revenues is calibrated to real firm data, while the parameters of the interest rate model are estimated by fitting the Euribor time series. To this aim, an ad hoc calibration procedure is developed which is based on the maximum likelihood principle and thus has the merit of being simple, fast and suitable for practical purposes. Our study reveals that the interest rate uncertainty reduces the valuation of investment projects. However, stochastic interest rates do not provide a substantial improvement with respect to constant interest rates, or at least the differences are not statistically significant.
Journal: Applied Economics
Pages: 5662-5672
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1327120
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1327120
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Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5662-5672
Template-Type: ReDIF-Article 1.0
Author-Name: B. C. Dealy
Author-X-Name-First: B. C.
Author-X-Name-Last: Dealy
Author-Name: B. P. Horn
Author-X-Name-First: B. P.
Author-X-Name-Last: Horn
Author-Name: A. K. Bohara
Author-X-Name-First: A. K.
Author-X-Name-Last: Bohara
Author-Name: R. P. Berrens
Author-X-Name-First: R. P.
Author-X-Name-Last: Berrens
Author-Name: A. D. Bryan
Author-X-Name-First: A. D.
Author-X-Name-Last: Bryan
Title: The impact of behavioural risk-reduction interventions on willingness to pay to avoid sexually transmitted infections: a stated preference study of justice-involved youth
Abstract:
Risky health behaviours, such as smoking, drinking and risky sex, are substantial contributors to the U.S. morbidity rates and healthcare costs. While economic models typically regard preferences as stable, a growing literature suggests that information, including how it interacts with intentions and attitudes, plays an important role in unhealthy behaviours. Relatedly, a large health literature demonstrates that theory-based behavioural interventions can successfully change risky behaviour. This study uses the contingent valuation (CV) survey method to investigate the impact of behavioural interventions on a novel outcome measure: the willingness to pay (WTP) to avoid the consequences associated with risky behaviour. Using novel pre- and post-intervention data from Project MARS (Motivating Adolescents to Reduce Sexual Risk), this study estimates the impact of the intervention on elicited WTP to avoid sexually transmitted infections (STIs). It is found that after the intervention, participants’ elicited WTP to avoid STIs were significantly higher, and more sensitive to differences in infection severity. These results suggest that the intervention may affect risky sexual behaviour by changing the perceived value of avoiding the consequences of risky sexual behaviour. Additionally, these findings contribute to an ongoing debate regarding the construct validity of CV studies in health economics.
Journal: Applied Economics
Pages: 5673-5685
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1332744
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332744
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Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5673-5685
Template-Type: ReDIF-Article 1.0
Author-Name: Steven C. Deller
Author-X-Name-First: Steven C.
Author-X-Name-Last: Deller
Author-Name: Tessa Conroy
Author-X-Name-First: Tessa
Author-X-Name-Last: Conroy
Author-Name: Philip Watson
Author-X-Name-First: Philip
Author-X-Name-Last: Watson
Title: Women business owners: a source of stability during the great recession?
Abstract:
During the period of the Great Recession, previous research has found that women-owned firms were less likely to lay-off workers than were firms owned by men. Given that the individual firm behaviour has a cumulative effect on regional economic performance, we expect greater stability across those regions with a larger share of women-owned and managed businesses. We test this hypothesis using US county data during the period from 2007 to 2013 at the US county level. Consistent with the findings of Matsa and Miller, our results suggest that regional economic stability increases with the share of women-owned and managed establishments.
Journal: Applied Economics
Pages: 5686-5697
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1332745
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332745
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Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5686-5697
Template-Type: ReDIF-Article 1.0
Author-Name: Carl Sherwood
Author-X-Name-First: Carl
Author-X-Name-Last: Sherwood
Author-Name: Do Won Kwak
Author-X-Name-First: Do Won
Author-X-Name-Last: Kwak
Title: New insights into an old problem – enhancing student learning outcomes in an introductory statistics course
Abstract:
Many students enrolled in first year introductory statistics courses believe learning statistics is a waste of time and fear they will fail. In this study, we explored the impacts on learning outcomes for students in an introductory statistics course by allowing students to arbitrarily choose their own sequence of learning from three key learning activities, namely tutorials, Peer-Assisted Study Sessions and Computer-Managed Learning quizzes. Unlike the old regime where the learning activities followed a strict, rigid sequence, a new regime allowed students to freely choose when, where and how they engaged with the course learning activities. This allowed increased opportunities for students to receive relevant and timely feedback. Using a total of 1187 students enrolled in semester 2 of 2011, 2012 and 2013, data were collected on students’ scores from 7 assessment tasks. Our experimental design ensured as many course features as possible remained constant between the control cohorts (of 2011 and 2012) and the experimental cohort (2013), thereby avoiding potential sample selection problems. The findings showed student learning outcomes in the new regime improved significantly. Interestingly, the effects were found to be greatest in the lower percentile of the score distribution.
Journal: Applied Economics
Pages: 5698-5708
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1332750
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332750
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Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5698-5708
Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Ching Yang
Author-X-Name-First: Chih-Ching
Author-X-Name-Last: Yang
Title: Local resource reallocation considering practical feasibility: a centralized data envelopment analysis approach
Abstract:
Many studies have addressed resource allocation issues by using centralized data envelopment analysis models. However, few of them provided a local resource reallocation plan which may be carried out more easily. This article proposes two models to get such plans. The first one considers an acceptable percentage of changes in resources to ensure practical feasibility. The second one further considers a situation where resources can only be allowed to shift within specific units. The proposed models are applied to an empirical study based on a hospital system in Taiwan. To demonstrate the practical feasibility of the suggested plans, we compare our reallocation suggestions to a plan that can make the whole system be perfectly efficient. The main conclusion is that the plans derived from our models are more practically feasible than that with perfect efficiency.
Journal: Applied Economics
Pages: 5709-5721
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1332754
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332754
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Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5709-5721
Template-Type: ReDIF-Article 1.0
Author-Name: Paul A. Raschky
Author-X-Name-First: Paul A.
Author-X-Name-Last: Raschky
Author-Name: Liang Choon Wang
Author-X-Name-First: Liang Choon
Author-X-Name-Last: Wang
Title: Reproductive behaviour at the end of the world: the effect of the Cuban Missile Crisis on U.S. fertility
Abstract:
We exploit the timing of the Cuban Missile Crisis and the geographical variation in mortality risks individuals faced across states to analyse reproduction decisions during the crisis. The results of a difference-in-differences approach show evidence that fertility decreased in states that are farther from Cuba and increased in states with more military installations. Our findings suggest that individuals are more likely to engage in reproductive activities when facing high mortality risks, but reduce fertility when facing a high probability of enduring the aftermath of a catastrophe.
Journal: Applied Economics
Pages: 5722-5727
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1340571
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340571
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Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5722-5727
Template-Type: ReDIF-Article 1.0
Author-Name: Bo Liu
Author-X-Name-First: Bo
Author-X-Name-Last: Liu
Author-Name: Qing Xu
Author-X-Name-First: Qing
Author-X-Name-Last: Xu
Author-Name: Jinqiang Yang
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Yang
Author-Name: Shunchen Zhang
Author-X-Name-First: Shunchen
Author-X-Name-Last: Zhang
Title: Liquidity default, liquidity management and smooth dividends policy
Abstract:
Our article models liquidity financing constraints with the real options framework. By conducting a comprehensive investigation of the effects of shocks to liquidity constraints on the firm’s optimal investment, financing and dividend policies, our model highlights the importance of liquidity management and extends the liquidity management approach to hedge liquidity default risk. We find that being concerned about liquidity default risk will significantly change a firm’s behaviours, including those related to investment and the optimal capital structure. A firm that is concerned about its liquidity default risk will become more cautious: it will choose to delay investment and have higher leverage when internal liquidity is very low, but choose earlier investment and lower leverage when liquidity is high enough. The dividends policy can alleviate risks from both the external market and internal project volatility and provides an alternative explanation for the ‘smooth dividends policy puzzle’ commonly reported in empirical research.
Journal: Applied Economics
Pages: 5728-5739
Issue: 56
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1361006
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361006
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Handle: RePEc:taf:applec:v:49:y:2017:i:56:p:5728-5739
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Haupenthal
Author-X-Name-First: Andreas
Author-X-Name-Last: Haupenthal
Author-Name: Matthias Neuenkirch
Author-X-Name-First: Matthias
Author-X-Name-Last: Neuenkirch
Title: Grexit news and stock returns
Abstract:
During the first 8 months of 2015, there was an ongoing debate about whether or not Greece should remain in the euro area. Using an event study approach, we quantify the effects of Grexit-related statements made by six important euro area politicians (Merkel, Schaeuble, Tsipras, Varoufakis, Juncker, and Schulz) on intraday stock returns in Germany, Greece, and the euro area during the period of 1 January 2015–19 August 2015. We show that positive statements indicating that a Grexit is less likely lead to higher returns, and negative statements to lower returns. The overall impact of negative statements is more pronounced. The cumulative absolute effects on stock returns are sizeable as the statements contribute to a variation of up to 58 percentage points in the ATHEX. These large effects are of particular relevance as our study only captures an 8-month snapshot of the Greek Government debt crisis.
Journal: Applied Economics
Pages: 3891-3898
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1270418
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1270418
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Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3891-3898
Template-Type: ReDIF-Article 1.0
Author-Name: Ozan Eksi
Author-X-Name-First: Ozan
Author-X-Name-Last: Eksi
Author-Name: Neslihan Kaya Eksi
Author-X-Name-First: Neslihan
Author-X-Name-Last: Kaya Eksi
Author-Name: Umit Ozlale
Author-X-Name-First: Umit
Author-X-Name-Last: Ozlale
Title: A comparison of optimal policy rules prior to and during inflation targeting: empirical evidence from Bank of Canada
Abstract:
We examine policy rules that are consistent with inflation targeting (IT) framework in a small macroeconomic model of the Canadian economy. We set up an optimal linear regulator problem and derive policy rules to compare the dynamics of pre-IT and IT eras. We find that while the optimal monetary policy rule in the pre-IT period is best described with a loss function that attaches equal weight to price stability, financial stability and output stability; the IT era is dominated by the price stability objective followed by the financial stability and output stability, consecutively. Moreover, we do not find an explicit role for exchange rate stability in the objective function of the Bank of Canada for both monetary policy eras. We, then, compare the properties of the derived optimal rules with those of an ad hoc Taylor rule for the IT period. In response to inflationary shocks, Taylor rule brings down inflation rates more quickly compared to the derived policy rules, but at the cost of a higher sacrifice ratio and more volatile interest rates.
Journal: Applied Economics
Pages: 3899-3911
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273488
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273488
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Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3899-3911
Template-Type: ReDIF-Article 1.0
Author-Name: Javier García-Enríquez
Author-X-Name-First: Javier
Author-X-Name-Last: García-Enríquez
Author-Name: Josu Arteche
Author-X-Name-First: Josu
Author-X-Name-Last: Arteche
Author-Name: Arantza Murillas-Maza
Author-X-Name-First: Arantza
Author-X-Name-Last: Murillas-Maza
Title: Testing for substitutability in the mackerel market: a new method using fractional cointegration
Abstract:
This article seeks to extend knowledge of the mackerel (Scomber scombrus) market in the Basque Country (a region in Spain) by analysing possible relationships between this and other species with similar characteristics such as the sardine (Sardina pilchardus), the horse mackerel (Trachurus trachurus) and the Atlantic chub mackerel (Scomber colias), all of them landed at the ports of the Basque Country. Specifically, the goal is to learn whether these other species can be considered as mackerel substitutes. To that end, a fractional cointegration analysis of different series of historical prices is performed using a novel method never before used in studies of this type. The results indicate that mackerel have no substitutes, and thus form a mono-species regional market. This implies, among other things, that their price is not influenced by the prices of other species, and this should be taken into account by managers when designing management measures and policies to improve the sustainability of the fishing of this species.
Journal: Applied Economics
Pages: 3912-3926
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273490
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273490
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Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3912-3926
Template-Type: ReDIF-Article 1.0
Author-Name: Daehoon Nahm
Author-X-Name-First: Daehoon
Author-X-Name-Last: Nahm
Author-Name: Michael Dobbie
Author-X-Name-First: Michael
Author-X-Name-Last: Dobbie
Author-Name: Craig MacMillan
Author-X-Name-First: Craig
Author-X-Name-Last: MacMillan
Title: Union wage effects in Australia: an endogenous switching approach
Abstract:
Using data from the Household and Labour Income Dynamics Australia (HILDA), an endogenous switching model is employed to analyse union wage effects in Australia between 2001 and 2013. An advantage of this approach is that the decision to join a union is treated as potentially endogenous, a function of the wage differential between union and non-union workers, rather than exogenous as is the case in virtually all previous Australian studies. The article finds that the decision to join a union is highly sensitive to the wage differential between union and non-union workers. The article also finds that male (female) union workers with average union characteristics earn 12% (18%) more than male (female) non-union workers with average non-union characteristics. However, a decomposition analysis finds that this difference is due to union workers having better human capital endowments than their non-union counterparts. In addition, they also receive a lower return for those endowments. These decomposition results suggest that union wage effects in Australia may be negative, rather than the small positive effects typically found in the Australian literature.
Journal: Applied Economics
Pages: 3927-3942
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273492
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273492
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Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3927-3942
Template-Type: ReDIF-Article 1.0
Author-Name: Youyu Chen
Author-X-Name-First: Youyu
Author-X-Name-Last: Chen
Author-Name: Tong Shu
Author-X-Name-First: Tong
Author-X-Name-Last: Shu
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Author-Name: Lu Gan
Author-X-Name-First: Lu
Author-X-Name-Last: Gan
Title: Strong–weak collaborative management in coping supply chain disruption risk transmission based on scale-free networks
Abstract:
Supply chain disruption causes tremendous loss to supply chains and global businesses. Organizational structure and operational features of supply chain networks, therefore, constitute a major portion of research for coping with supply chain disruption risk. This article first discusses the theoretical foundation, analyses the strength theory of strong and weak ties and the collaborative theory of strong and weak ties. Also, research methods are explicated; the scale-free networks and the theory of strong ties are integrated; the features of supply chain networks are considered from single statistical parameters and comprehensive analyses. Next, we provide numeric simulation of the properties of supply chain networks, verifying the accuracy of parameter analyses of single statistics and comprehensive analyses. Ultimately, when coping with supply chain disruption risk, each node enterprise of supply chain network is supposed to deploy the characteristics of scale-free networks to systematically manage existing weak ties, weak ties newly introduced, existing strong ties and strong ties newly introduced. This study is conducive to node enterprises of supply chains to recognize and apply the scale-free networks and the strength theory of ties to analyze the properties of supply chain networks, and to improve the capacity to cope with disruption risk.
Journal: Applied Economics
Pages: 3943-3958
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273494
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273494
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Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3943-3958
Template-Type: ReDIF-Article 1.0
Author-Name: Slah Bahloul
Author-X-Name-First: Slah
Author-X-Name-Last: Bahloul
Author-Name: Mourad Mroua
Author-X-Name-First: Mourad
Author-X-Name-Last: Mroua
Author-Name: Nader Naifar
Author-X-Name-First: Nader
Author-X-Name-Last: Naifar
Title: Further evidence on international Islamic and conventional portfolios diversification under regime switching
Abstract:
This article investigates the comparative performance of International Islamic and conventional portfolio diversification across different financial market regimes and provides an optimal choice from an American investor’s viewpoint during the period 2002–2014. Using a bootstrap-based stochastic dominance (SD) test and monthly MSCI prices of Islamic stock market indices and their conventional counterparts in 38 countries from North and Latin America, Europe and Asia-Pacific regions, we find that SD relationships between Islamic and conventional optimal-diversified portfolios change systematically according to investment region and market regime. Essentially, for all regimes, US investors are indifferent between Islamic diversification and its conventional counterpart, which implies that arbitrage diversification opportunities are rare and short lived in all regions. However, across all regions, especially in a crisis regime, Islamic portfolio diversification can be a good substitute for conventional diversification. Islamic portfolio diversification in North and Latin America, Europe and Global regions is an optimal choice for the risk-averse American investors. Finally, results imply that portfolio diversification among Islamic market indices can be a good hedge, offering investors superior investment alternatives during any financial meltdown or economic slowdown due to the conservative nature of Sharia-compliant investments.
Journal: Applied Economics
Pages: 3959-3978
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273496
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273496
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Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3959-3978
Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Author-Name: Giuseppe Lucio Gaeta
Author-X-Name-First: Giuseppe Lucio
Author-X-Name-Last: Gaeta
Author-Name: Massimo Guarino
Author-X-Name-First: Massimo
Author-X-Name-Last: Guarino
Title: Anti-poverty competences in a multilevel government: an empirical analysis of citizens’ preferences in Europe
Abstract:
This article aims to investigate individuals’ perceptions about institutions that should be primarily responsible for reducing or preventing poverty, which is a dramatic phenomenon that became a crucial issue in European countries over recent years. We propose an empirical analysis based on European survey data and investigate some citizens’-level and country-level variables that potentially affect individuals’ attitudes. Our results suggest that country-level economic and institutional characteristics do significantly affect individual preferences for the governance of anti-poverty policies.
Journal: Applied Economics
Pages: 3979-3994
Issue: 39
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273499
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273499
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Handle: RePEc:taf:applec:v:49:y:2017:i:39:p:3979-3994
Template-Type: ReDIF-Article 1.0
Author-Name: Robert M. McNab
Author-X-Name-First: Robert M.
Author-X-Name-Last: McNab
Author-Name: Son D. Wilson
Author-X-Name-First: Son D.
Author-X-Name-Last: Wilson
Title: Culture matters: what cultural values influence budget transparency?
Abstract:
This article empirically examines whether cultural values significantly influence budget transparency. We employ data for budget transparency from the Open Budget Index, and data for national culture from Hofstede’s cultural dimensions, the Global Leadership and Behavioral Effectiveness Research Project and the World Values Survey to explore this question. We find evidence that individualism positively influences budget transparency. We also find that stronger preferences for institutional collectivism, masculinity and authoritarian rule lower budget transparency. These results suggest that national culture shapes preferences for budget transparency and influences the possibility of success for attempts to improve budget transparency across countries.
Journal: Applied Economics
Pages: 4593-4605
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458197
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458197
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Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4593-4605
Template-Type: ReDIF-Article 1.0
Author-Name: Kadir Atalay
Author-X-Name-First: Kadir
Author-X-Name-Last: Atalay
Author-Name: Rong Zhu
Author-X-Name-First: Rong
Author-X-Name-Last: Zhu
Title: The effect of a wife’s retirement on her husband’s mental health
Abstract:
This article examines the effect of wives’ retirement on their husband’s mental health in Australia. By exploiting the exogenous variations in women’s retirement induced by the age pension qualifying ages, we find that spousal retirement status has a positive impact on the mental health of older men. This beneficial impact is found to strengthen with wives’ time spent in retirement. We show that wife’s retirement affects the constituents of her husband’s mental well-being in different ways. We also have identified four channels for the positive linkage between older women’s retirement and the mental health of their spouse.
Journal: Applied Economics
Pages: 4606-4616
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458198
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458198
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Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4606-4616
Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Title: Effects of asset purchases and financial stability measures on term premia in the euro area
Abstract:
We study the effects of the announcements of ECB asset purchases and of financial stability measures in the euro area in the wake of the global financial crisis and the euro area sovereign debt crisis on 10-year government bond term premia in 11 euro area countries. We find that the term premia of euro area countries with higher sovereign risk, as measured by sovereign CDS spreads, decreased more in response to the announcements of asset purchases and financial stability measures. Term premia of countries with lowest sovereign risk either increased as in Germany, or were not significantly affected or fell slightly, as in the Netherlands and Finland.
Journal: Applied Economics
Pages: 4617-4631
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458199
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458199
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Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4617-4631
Template-Type: ReDIF-Article 1.0
Author-Name: Miia Parnaudeau
Author-X-Name-First: Miia
Author-X-Name-Last: Parnaudeau
Author-Name: Jean-Louis Bertrand
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Bertrand
Title: The contribution of weather variability to economic sectors
Abstract:
Every day, people make economic decisions based on the weather, affecting sales of companies in a wide range of economic sectors. In many cases, the impact of weather on sales is not constant from one season to the next. Yet, the existing research to estimate the influence of temperature on annual sales has not analysed the relationship per season, resulting in potential washout effects and underestimated weather impacts. Drawing upon French economic sectors for empirical evidence, we break down the analysis of the relationship between weather and monthly sales by season. Our methodology provides the cumulative annual contribution of weather to sales and allows deriving the maximum potential annual impact of adverse weather. With our results, analysts and risk managers can better understand the exposure to abnormal weather and consider the potential benefits of mitigating weather risk using the weather parameters we identify to structure bespoke index-based financial instruments.
Journal: Applied Economics
Pages: 4632-4649
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458200
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458200
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Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4632-4649
Template-Type: ReDIF-Article 1.0
Author-Name: Jihui Chen
Author-X-Name-First: Jihui
Author-X-Name-Last: Chen
Author-Name: Dimitrios Nikolaou
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Nikolaou
Title: The role of pregnancy health problems on maternal smoking behaviours
Abstract:
To explore the effects of pregnancy health problems (PHPs) on smoking behaviours during and after pregnancy (‘smoking-inducing’ effect), we estimate a two-period model that jointly determines prenatal and postnatal smoking decisions, taking into consideration the presence of PHPs. While PHPs are likely to reduce prenatal (except for heavy smokers) and postnatal smoking propensity, we still observe considerable postnatal relapse in the sample, which can be attributed to smoking addiction, as well as information asymmetries and maternal stress associated with PHPs. Thus, we advocate for smoking cessation policies and programmes throughout and beyond pregnancy to avoid potential intertemporal substitution between prenatal and postnatal cigarette consumption.
Journal: Applied Economics
Pages: 4650-4670
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1458201
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1458201
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Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4650-4670
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Ortobelli Lozza
Author-X-Name-First: Sergio
Author-X-Name-Last: Ortobelli Lozza
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Author-Name: Martin Egozcue
Author-X-Name-First: Martin
Author-X-Name-Last: Egozcue
Title: Diversification versus optimality: is there really a diversification puzzle?
Abstract:
In this paper, we provide a general valuation of the diversification attitude of investors. First, we empirically examine the diversification of mean-variance optimal choices in the US stock market during the 11-year period 2003–2013. We then analyze the diversification problem from the perspective of risk-averse investors and risk-seeking investors. Second, we prove that investors’ optimal choices will be similar if their utility functions are not too distant, independent of their tolerance (or aversion) to risk. Finally, we discuss investors’ attitude towards diversification when the choices available to investors depend on several parameters.
Journal: Applied Economics
Pages: 4671-4693
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1459037
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1459037
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Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4671-4693
Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Nguyen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Nguyen
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: Mortgage product diversity: responding to consumer demand or protecting lender profit? An asymmetric panel analysis
Abstract:
This article explores determinants of mortgage product diversity for owner-occupied and investment loans in the Australian housing mortgage market. From 2001 to 2012, 65 lenders introduced 1220 mortgage products in Australia. We examine whether the product proliferation was a result of consumer demand or a response to pressure to lower lending rates. We find that consumer demand for mortgages does not have a significant relationship with the number of mortgage products, but that decreases in the policy interest rate are highly significant as an explanatory variable for product proliferation. Such behaviour is consistent with information obfuscation, reducing the ease with which consumers can compare lending rates. Further, the relationship between mortgage products offered and the policy interest rate is asymmetric: decreases in the cash rate are associated with increased mortgage products offered, but increases in the cash rate have a more muted effect on decreasing the number of products.
Journal: Applied Economics
Pages: 4694-4704
Issue: 43
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1459038
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1459038
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Handle: RePEc:taf:applec:v:50:y:2018:i:43:p:4694-4704
Template-Type: ReDIF-Article 1.0
Author-Name: Md Samsul Alam
Author-X-Name-First: Md Samsul
Author-X-Name-Last: Alam
Author-Name: E A Selva Selvanathan
Author-X-Name-First: E A Selva
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: Moazzem Hossain
Author-X-Name-First: Moazzem
Author-X-Name-Last: Hossain
Title: Causal relationship between apparel exports and macroeconomic factors
Abstract:
Apparel exports make a significant contribution to economic growth in major apparel exporting economies such as Bangladesh, Sri Lanka and Vietnam. This study aims to investigate the causal relationship between apparel export growth and its determinants such as GDP growth, infrastructure, financial development, foreign direct investment (FDI) and labour productivity using panel data from 11 major apparel exporting countries for the period 1996 to 2013. The results confirm a long-run equilibrium association among the variables and reveal that GDP growth, infrastructure, financial development, FDI, and labour productivity have a significant positive influence on apparel export growth. Furthermore, the heterogeneous panel non-causality test results suggest that GDP growth, infrastructure and labour productivity contribute to apparel export growth in the short-run. These findings have several policy implications for the governments of the countries under study.
Journal: Applied Economics
Pages: 2687-2702
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1527447
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527447
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Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2687-2702
Template-Type: ReDIF-Article 1.0
Author-Name: Victor Pontines
Author-X-Name-First: Victor
Author-X-Name-Last: Pontines
Author-Name: Reza Y. Siregar
Author-X-Name-First: Reza Y.
Author-X-Name-Last: Siregar
Title: Non-core liabilities and interest rate pass-through: bank-level evidence from Indonesia
Abstract:
The policy importance of non-core liabilities (bank liabilities other than equity and retail deposits) has risen to prominence in recent years with a number of studies highlighting it as a useful indicator of financial procyclicality and vulnerability. In this paper, we look at non-core liabilities in relation to its role in the transmission of monetary policy, particularly by examining how the interest rate channel of monetary policy is affected by non-deposit liabilities. We analyse this issue in the context of an emerging economy experience of Indonesia, which in recent years, has seen an increased reliance of its banking sector on non-core funding. Our investigation employs available bank-level data on non-core liabilities and lending rates in Indonesia over the period October 2011 to July 2016. We find that including non-core liabilities in the estimation has an effect, relative to the baseline, of stronger overall and immediate pass-through, albeit with a more sluggish adjustment towards the correction of disequilibrium in the next period. The overall effect is that non-core liabilities make the duration longer for the monetary policy rate to transmit to bank lending rates in Indonesia.
Journal: Applied Economics
Pages: 2703-2714
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558352
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558352
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Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2703-2714
Template-Type: ReDIF-Article 1.0
Author-Name: Chuantao Cui
Author-X-Name-First: Chuantao
Author-X-Name-Last: Cui
Author-Name: Leona Shao-Zhi Li
Author-X-Name-First: Leona Shao-Zhi
Author-X-Name-Last: Li
Title: High-speed rail and inventory reduction: firm-level evidence from China
Abstract:
Using a balanced panel of manufacturing firms from China between 2007 and 2013, we estimate that being connected to a high-speed rail (HSR) system leads to 9.5% reduction in local firms’ input inventory spending. The effect is stronger for downstream industries and private enterprises. A back-of-envelope calculation suggests that each dollar of HSR investment reduces input inventory stock by 12 cents, which is significantly larger than the effects found in previous studies based on highway or road investment. Declines in transportation and communication cost, as well as agglomeration effect, are identified as plausible mechanisms. Our findings reveal a micro channel through which improved transport infrastructure brings about economic gains, and contribute to the cost-benefit assessment of HSR investment.
Journal: Applied Economics
Pages: 2715-2730
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558353
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558353
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Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2715-2730
Template-Type: ReDIF-Article 1.0
Author-Name: Yamin Ahmad
Author-X-Name-First: Yamin
Author-X-Name-Last: Ahmad
Author-Name: Ming Chien Lo
Author-X-Name-First: Ming Chien
Author-X-Name-Last: Lo
Author-Name: Olena Staveley-O’Carroll
Author-X-Name-First: Olena
Author-X-Name-Last: Staveley-O’Carroll
Title: Nonlinearities in the real exchange rates: new evidence from developed and developing countries
Abstract:
This paper investigates nonlinearities in the dynamics of real exchange rates. We use Monte Carlo simulations to establish the size properties of the Teräsvirta-Anderson test, when the dynamics of the real exchange rate is influenced by an exogenous process. In addition, we show that a modified nonlinearity test, which includes additional right-hand-side variables, performs much better than the original in both Monte Carlo exercises and in the actual data on 1431 bilateral real exchange rate series. Finally, we investigate the dynamics of the real exchange rate for both developed and developing countries using the modified test for the recent floating period. In general, the results find a greater incidence of nonlinear dynamics for developing country real exchange rates.
Journal: Applied Economics
Pages: 2731-2743
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558354
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558354
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Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2731-2743
Template-Type: ReDIF-Article 1.0
Author-Name: Alejandra Elizondo
Author-X-Name-First: Alejandra
Author-X-Name-Last: Elizondo
Author-Name: Roy Boyd
Author-X-Name-First: Roy
Author-X-Name-Last: Boyd
Title: CGE assumptions under scrutiny: uncertainty in the ethanol promotion policy in Mexico
Abstract:
Based on a CGE exercise of a subsidy to initiate ethanol production in Mexico, we use Monte Carlo simulations for consumer demand elasticities and ethanol cost estimates. The analysis provides three conclusions: when markets vary smoothly and predictably, Monte Carlo methods can then help to gauge the actual probability that a given program will achieve a desired outcome. Second, secondary markets may display little or no sensitivity to these parameter variations. Finally, a ‘razor’s edge’ outcome with no positive benefits if a critical parameter falls below some critical value, reveals that an economic policy may not be conducive to ‘fine tuning’ by marginal adjustments.
Journal: Applied Economics
Pages: 2744-2753
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558355
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558355
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Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2744-2753
Template-Type: ReDIF-Article 1.0
Author-Name: Weijian Du
Author-X-Name-First: Weijian
Author-X-Name-Last: Du
Author-Name: Mengjie Li
Author-X-Name-First: Mengjie
Author-X-Name-Last: Li
Title: Government support and innovation for new energy firms in China
Abstract:
Government support plays an important role in the Chinese economy. New energy industries, which involve innovation-driven sources and environmental protection, are also supported by the government. This paper aims to study the effects of supply-side traditional government support on firms’ innovation and development. We propose a theoretical mechanism and study the innovation reaction of firms to government support in different situations. We further use propensity score matching to verify the results in the theoretical model and conduct a robustness analysis. Our main conclusions include the following. (1) In normal years, government support can promote only the innovation output of firms that have innovated; however, support cannot promote the innovation probability of firms that have not innovated. Government support can only enhance the intensive margin of innovation and cannot enhance the extensive margin of innovation with less competition. (2) In the situation of a bad economic environment and intense competition, firms’ innovation probability rises as government support increases. Therefore, the government should provide more R&D special subsidies and implement strict financial supervision to make support policies effective, especially in normal years.
Journal: Applied Economics
Pages: 2754-2763
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558356
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558356
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Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2754-2763
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Kunsteller
Author-X-Name-First: Sebastian
Author-X-Name-Last: Kunsteller
Author-Name: Janis Müller
Author-X-Name-First: Janis
Author-X-Name-Last: Müller
Author-Name: Peter N. Posch
Author-X-Name-First: Peter N.
Author-X-Name-Last: Posch
Title: Do illiquid stocks jump more frequently?
Abstract:
We study the influence of stock liquidity on the stock price jump frequency using intraday data of 175 US stocks during 2007–11. Grouping these stocks according to their average liquidity we find less liquid stocks to jump more often than liquid stocks. Depending on the liquidity measure the least liquid stocks exhibit on average between 10% and 34% more jumps than the most liquid stocks. Our results are robust to different definitions of liquidity and jump measures as well prevail under different time frequencies.
Journal: Applied Economics
Pages: 2764-2769
Issue: 25
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1558357
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558357
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Handle: RePEc:taf:applec:v:51:y:2019:i:25:p:2764-2769
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Title: Predicting bid prices by using machine learning methods
Abstract:
It is well-known that empirical analysis suffers from multicollinearity and high dimensionality. In particular, this is much more severe in an empirical study of itemized bids in highway procurement auctions. To overcome this obstacle, this article employs the regularized linear regression for the estimation of a more precise interval for project winning bids. The approach is put to the test using empirical data of highway procurement auctions in Vermont. In our empirical analysis, we first choose a set of crucial tasks that determine a bidder’s bid amounts by using the random forest variable selection method. Given the selected tasks, project bid forecasting is conducted. We compare our proposed methodology with the least square linear model based on the bias and the standard root mean square error of the bid estimates. There is evidence supporting that the suggested approach provides superior forecasts for an interval of winning bids over the competing model. As far as we know, this article is the first attempt to provide reference bids of highway construction contracts.
Journal: Applied Economics
Pages: 2011-2018
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1537477
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1537477
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Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2011-2018
Template-Type: ReDIF-Article 1.0
Author-Name: Yicheol Han
Author-X-Name-First: Yicheol
Author-X-Name-Last: Han
Author-Name: Stephan J. Goetz
Author-X-Name-First: Stephan J.
Author-X-Name-Last: Goetz
Title: Predicting US county economic resilience from industry input-output accounts
Abstract:
Resilience is defined as a system’s ability to initially resist and then recover from a shock. Here we apply this concept to examine the performance of U.S. counties during the Great Recession. The response of local economies to manmade and natural shocks is hypothesized to depend on the centrality of local industries within the economy, or how well connected they are to the other industries. We first calculate a centrality value for each industry using the national Input-Output accounts. We then ‘step down’ these values to the county level using industry employment data. We then test empirically whether local economies containing more centralized industries were more resilient, using a resilience measure that compares the local employment rebound and decline during the Great Recession. Our results suggest that measures of economic centrality adopted from the study of complex networks provide new insights when applied to the fields of regional science and spatial analysis, and economic growth more generally.
Journal: Applied Economics
Pages: 2019-2028
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1539806
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1539806
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Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2019-2028
Template-Type: ReDIF-Article 1.0
Author-Name: Sumiko Takaoka
Author-X-Name-First: Sumiko
Author-X-Name-Last: Takaoka
Title: Is there a safety premium in the design of corporate bond contracts?
Abstract:
This study examines empirically whether there is a safety premium in the design of bond contracts by highlighting a safety attribute of general mortgage bonds in Japan, which can give especially strong protection to bondholders, who would have priority in the event of legal liquidation. The effects of a safety attribute were not prominent at first in the difference-in-differences analysis. However, the methods for analysing selectivity bias allow us to provide a safety premium in the design of bond contracts, such as lower spread, lower commission, and larger issue size. The resulting bias would depend on the reputation of the bookrunner. This study uncovers the underlying link for the connection between a safety attribute and the observed and unobserved issuer and bookrunner characteristics, to indicate that a safety premium is related to various terms of bond contracts, including the bookrunner-issuer match.
Journal: Applied Economics
Pages: 2029-2042
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1539807
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1539807
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Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2029-2042
Template-Type: ReDIF-Article 1.0
Author-Name: T. Danswasvong
Author-X-Name-First: T.
Author-X-Name-Last: Danswasvong
Author-Name: S. Suchintabandid
Author-X-Name-First: S.
Author-X-Name-Last: Suchintabandid
Title: Heterogeneity effects on the management of retirement fund
Abstract:
This article studies the importance of plan members’ heterogeneity to the management of defined benefit (DB) pension fund. We propose a new multi-member model of DB pension fund that allows for heterogeneity in plan members’ retirement ages, salary growths and other characteristics. We first solve analytically for optimal management strategy and show that the sponsor’s supplementary contribution and the fund’s allocation in risky assets are determined by the cross-product between the fund’s expected retirement liabilities and some heterogeneity-adjusted discount factors. We then demonstrate that the presence of heterogeneity can have a significant influence on the optimal management strategy and that a management decision made while ignoring heterogeneity will be suboptimal. The knowledge of desirable and undesirable effects of heterogeneity that we uncover in this article also provides implications to the grouping of fund members. Introducing a presence of young member whose salary is positively correlated with the risky asset and avoid stacking members with negative correlations will all help the management.
Journal: Applied Economics
Pages: 2043-2060
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540844
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540844
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Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2043-2060
Template-Type: ReDIF-Article 1.0
Author-Name: Esteban Petruzzello
Author-X-Name-First: Esteban
Author-X-Name-Last: Petruzzello
Title: Testing for forward-looking behaviour: evidence from the enactment of smoking restrictions
Abstract:
This paper develops a new test for forward-looking behaviour based on the establishment of public smoking restrictions. Given that the announcement of these restrictions effectively increases the future cost of smoking, we should expect forward-looking smokers to curb their consumption before the restriction is effective due to complementarity between present and future consumption. I perform the estimation using detailed, high-frequency household-level purchase data. The results provide evidence against the forward-looking behaviour of smokers. Households do not reduce their cigarette purchases before announced public smoking restrictions are established; they only do so once the restriction is in effect.
Journal: Applied Economics
Pages: 2061-2069
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540845
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540845
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Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2061-2069
Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Chu Shu
Author-X-Name-First: Hui-Chu
Author-X-Name-Last: Shu
Author-Name: Jung-Hsien Chang
Author-X-Name-First: Jung-Hsien
Author-X-Name-Last: Chang
Title: Spillovers of volatility index: evidence from U.S., European, and Asian stock markets
Abstract:
We investigated the cross-market relations of volatility indexes with U.S. and non-U.S. stock market returns. We found that the pervasive VIX influence at both U.S. and non-U.S. stock markets. The VSTOXX and VKOSPI capture the major shocks to the global economy and show movements similar to the VIX. The empirical findings indicate that volatility index changes are important in explaining stock returns. We also examined spillover effects across volatility indexes. The VIX is a main transmitter, and the VKOSPI the main receiver, of these spillovers. The results point to a leading role for the VIX in the international market.
Journal: Applied Economics
Pages: 2070-2083
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540846
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540846
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Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2070-2083
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: A model selection approach for multiple indicators multiple causes model
Abstract:
This study proposes a model selection approach for determining the inclusion or exclusion of a latent variable when two exogenous and two endogenous variables are provided. The models compared are the multivariate regression model without latent variables (MR model) and the multiple indicators multiple causes model (MIMIC model). The inclusion of a latent variable in the MR model yields the MIMIC model. In the proposed approach, an information criterion is used to select the best model of the two. The efficacy of the proposed approach is examined through two types of simulation studies and empirical analyses of the shadow economy and the fiscal illusion.
Journal: Applied Economics
Pages: 2084-2090
Issue: 19
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540847
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540847
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Handle: RePEc:taf:applec:v:51:y:2019:i:19:p:2084-2090
Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Ismihan
Author-X-Name-First: Mustafa
Author-X-Name-Last: Ismihan
Author-Name: Burcu Dinçergök
Author-X-Name-First: Burcu
Author-X-Name-Last: Dinçergök
Author-Name: Seyit Mümin Cilasun
Author-X-Name-First: Seyit Mümin
Author-X-Name-Last: Cilasun
Title: Revisiting the finance–growth nexus: the Turkish case, 1980–2010
Abstract:
In Turkey, the empirical results on the link between financial development and economic growth are mixed. The existing studies do not take into account the fact that Turkey has experienced endemic political and economic instabilities over extended periods. This study aims to analyse the role of macroeconomic instability and public borrowing on the finance–growth nexus in Turkey by using time series econometric techniques over the 1980–2010 period. In doing so, we attempt to extend the existing literature by taking into account the role of macroeconomic instability as well as public borrowing. Our results reveal that there are additional – albeit indirect – channels between finance and growth via the effects of macro instability and public borrowing on financial development and economic growth. After taking into account the effects of overall instability and public borrowing, we found that growth–financial development relationship is bidirectional and permanent. In other words, in Turkish case, economic growth and financial development are jointly determined. Thus, our results shed some light on the ambiguity of the evidence on the link between financial development and economic growth for Turkey.
Journal: Applied Economics
Pages: 1737-1750
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226487
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226487
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Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1737-1750
Template-Type: ReDIF-Article 1.0
Author-Name: Xiuhua Wang
Author-X-Name-First: Xiuhua
Author-X-Name-Last: Wang
Author-Name: Jian Guan
Author-X-Name-First: Jian
Author-X-Name-Last: Guan
Title: Financial inclusion: measurement, spatial effects and influencing factors
Abstract:
Using the index of financial inclusion and the World Bank Global Findex database, this study measures the level of financial inclusion across countries. The results reveal a geographical spatial aggregation distribution in which developed European and North American countries enjoy higher levels of financial inclusion than the less developed countries of Africa and most of Asia. Accordingly, our spatial analysis proves our hypothesis and reveals dependence and aggregation effects among countries. Then, we employ spatial econometric research to identify those factors significantly associated with financial inclusion. The results show that an individual’s income, education and use of communications equipment are important factors that explain the level of financial inclusion, while financial depth and banking health status are the main determinants. Building an inclusive financial system is an important means for most countries to achieve the Millennium Development Goals.
Journal: Applied Economics
Pages: 1751-1762
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226488
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226488
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Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1751-1762
Template-Type: ReDIF-Article 1.0
Author-Name: Louis de Grange
Author-X-Name-First: Louis
Author-X-Name-Last: de Grange
Author-Name: Rodrigo Troncoso
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Troncoso
Author-Name: Nicolás Odeh
Author-X-Name-First: Nicolás
Author-X-Name-Last: Odeh
Author-Name: Felipe González
Author-X-Name-First: Felipe
Author-X-Name-Last: González
Title: Estimating the impact of incidents on urban controlled-access highways: an empirical analysis
Abstract:
An empirical analysis is developed that quantifies the impact of different types of traffic incidents on the speed and maximum flow averages of vehicles on a controlled-access highway. The incident types considered include damage to highway infrastructure, vehicle rollover, crashes (into stationary objects), collisions (with moving vehicles), rain, fog, vehicle breakdowns, pedestrians on roadway, etc. Using real-world data from Chile’s most heavily used urban motorway/freeway, estimates of incident impacts on speed are generated using a multiple linear regression model incorporating instrumental variables to correct for endogeneity. Flow results are then generated using the fundamental traffic equation relating speed, flow and density. A ranking of the impacts on highway traffic of the different incident types based on incident frequency as well as impact size demonstrates that for the real case studied, the incidents with the greatest cumulative effect are (in order of magnitude) vehicle breakdown, collisions and rain.
Journal: Applied Economics
Pages: 1763-1773
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226489
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226489
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Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1763-1773
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Pierre Allegret
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Allegret
Author-Name: Cécile Couharde
Author-X-Name-First: Cécile
Author-X-Name-Last: Couharde
Author-Name: Valérie Mignon
Author-X-Name-First: Valérie
Author-X-Name-Last: Mignon
Author-Name: Tovonony Razafindrabe
Author-X-Name-First: Tovonony
Author-X-Name-Last: Razafindrabe
Title: Oil currencies in the face of oil shocks: what can be learned from time-varying specifications?
Abstract:
While the oil currency property is clearly established from a theoretical viewpoint, its existence is less clear-cut in the empirical literature. We investigate the reasons for this apparent puzzle by studying the time-varying nature of the relationship between real effective exchange rates of five oil exporters and the real price of oil in the aftermath of the oil price shocks of the last two decades. Accordingly, we rely on a time-varying parameter VAR specification, which allows the responses of real exchange rates to different oil price shocks to evolve over time. We find that the reason of the mixed results obtained in the empirical literature is that oil currencies follow different hybrid models in the sense that oil countries’ real exchange rates may be driven by one or several sources of oil price shocks that furthermore can vary over time. In addition to structural changes affecting oil countries, structural changes arising from the oil market itself through the various, time-varying sources of oil price shocks are found to be crucial.
Journal: Applied Economics
Pages: 1774-1793
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226490
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226490
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Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1774-1793
Template-Type: ReDIF-Article 1.0
Author-Name: Claudiu Tiberiu Albulescu
Author-X-Name-First: Claudiu Tiberiu
Author-X-Name-Last: Albulescu
Author-Name: Christian Aubin
Author-X-Name-First: Christian
Author-X-Name-Last: Aubin
Author-Name: Daniel Goyeau
Author-X-Name-First: Daniel
Author-X-Name-Last: Goyeau
Title: Stock prices, inflation and inflation uncertainty in the U.S.: testing the long-run relationship considering Dow Jones sector indexes
Abstract:
We test for the long-run relationship between stock prices, inflation and its uncertainty for different U.S. sector stock indexes, over the period 2002M7–2015M10. For this purpose we use a cointegration analysis with one structural break to capture the crisis effect, and we assess the inflation uncertainty based on a time-varying unobserved component model. In line with recent empirical studies we discover that in the long run, the inflation and its uncertainty negatively impact the stock prices, opposed to the well-known Fisher effect. In addition we show that for several sector stock indexes the negative effect of inflation and its uncertainty vanishes after the crisis outburst. However, in the short run the results provide evidence in favour of a negative impact of uncertainty, while the inflation has no significant influence on stock prices, except for the consumption indexes. The consideration of business cycle effects confirms our findings, which proves that the results are robust, both for long- and short-run relationships.
Journal: Applied Economics
Pages: 1794-1807
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226491
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226491
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Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1794-1807
Template-Type: ReDIF-Article 1.0
Author-Name: M. P. Cameron
Author-X-Name-First: M. P.
Author-X-Name-Last: Cameron
Author-Name: S. Siameja
Author-X-Name-First: S.
Author-X-Name-Last: Siameja
Title: An experimental evaluation of a proactive pastoral care initiative within an introductory university course
Abstract:
Improving student retention and academic performance is a key objective for higher education institutions, and finding effective interventions for assisting with at-risk students is therefore important. In this article, we evaluate a proactive pastoral care intervention that was trialled in an introductory economics course in New Zealand. We first identified students at high risk of failure, and then randomized these students into two treatment groups and a control group. The first treatment group received an email with information about academic support, while the second treatment group received the email as well as a personal telephone call to follow-up. In evaluating the impact of the intervention trial, we found that the first intervention did not significantly improve student outcomes, but the second intervention improved outcomes in one of the two semesters evaluated. Overall, the initiative was a qualified success. It is both simple and cost-effective and should be considered for wider implementation and further evaluation.
Journal: Applied Economics
Pages: 1808-1820
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226492
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226492
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Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1808-1820
Template-Type: ReDIF-Article 1.0
Author-Name: Dooyeon Cho
Author-X-Name-First: Dooyeon
Author-X-Name-Last: Cho
Author-Name: Sungju Chun
Author-X-Name-First: Sungju
Author-X-Name-Last: Chun
Title: Trend shifts in the forward premium and the predictability of excess returns in currency markets
Abstract:
This article provides evidence that the forward premium involves structural changes in the trend function, which might affect the predictability of currency excess returns to be dependent on the choice of the sample period. Accounting for the shifts in trend for the forward premium reveals that currency excess returns for the Canadian dollar, Swiss franc, euro and pound against the US dollar are significantly predictable irrespective of the sample period selected. Another advantage of detrending the forward premium is that we can obtain more consistent slope coefficient estimates in the predictive regression, which enables us to make more consistent, dependable inferences about the excess return predictability.
Journal: Applied Economics
Pages: 1821-1832
Issue: 18
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1226493
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1226493
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Handle: RePEc:taf:applec:v:49:y:2017:i:18:p:1821-1832
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund
Author-X-Name-First: Christian
Author-X-Name-Last: Grund
Author-Name: Maike Rubin
Author-X-Name-First: Maike
Author-X-Name-Last: Rubin
Title: Social comparisons of wage increases and job satisfaction
Abstract:
We combine status quo and social comparison considerations and investigate whether relative wage increases in the sense of differences between individual wage increases and wage increases of comparable employees are related to managers’ job satisfaction. Using a panel data set of managers in the German chemical industry, we indeed find first evidence. The relation between relative wage increases and job satisfaction is relevant for managers with lower absolute wage levels in particular.
Journal: Applied Economics
Pages: 1345-1350
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1217311
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1217311
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Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1345-1350
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad F. Bhuiyan
Author-X-Name-First: Muhammad F.
Author-X-Name-Last: Bhuiyan
Author-Name: Radek S. Szulga
Author-X-Name-First: Radek S.
Author-X-Name-Last: Szulga
Title: Extreme bounds of subjective well-being: economic development and micro determinants of life satisfaction
Abstract:
This article presents a global sensitivity analysis of micro determinants of life satisfaction (LS), a subjective well-being (SWB) measure of quality of life, as it relates to economic development. We test 53 micro variables using extreme bound analysis on a pooled cross-section data from the World Value Survey representing 98 countries between 1989 and 2014. Several standard variables frequently included in SWB regressions are controlled for. The test variables are broadly categorized as demographic, personal–economic, individual traits and values, social attitudes and collectivism, social relationships and perceptions of control. We find subjective health status, household income rank, family savings, religiosity, most perceptions of control and several social attitudes and collectivism measures to be universal LS determinants. Generally, the determinants of LS vary by a country’s level of economic development. In particular, we provide suggestive evidence that as countries develop, certain needs are satisfied and stop being important contributors to LS while others take their place.
Journal: Applied Economics
Pages: 1351-1378
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218426
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218426
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Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1351-1378
Template-Type: ReDIF-Article 1.0
Author-Name: Jürgen Bitzer
Author-X-Name-First: Jürgen
Author-X-Name-Last: Bitzer
Author-Name: Ingo Geishecker
Author-X-Name-First: Ingo
Author-X-Name-Last: Geishecker
Author-Name: Philipp J. H. Schröder
Author-X-Name-First: Philipp J. H.
Author-X-Name-Last: Schröder
Title: Is there a wage premium for volunteer OSS engagement? – signalling, learning and noise
Abstract:
Volunteer-based open-source production has become a significant new model for the organization of software development. Economics often pictures this phenomenon as a case of signalling: individuals engage in the volunteer programming of open-source software (OSS) as a labour-market signal resulting in a wage premium. Yet, this explanation could so far not be empirically tested. This article fills this gap by estimating an upper-bound composite wage premium of voluntary OSS contributions and by separating the potential signalling effect of OSS engagement from other effects. Although some 70% of OSS contributors believe that OSS involvement benefits their careers, we find no actual labour-market premium for OSS engagement. The presence of other motives, such as fun of play or altruism, renders OSS contributions too noisy to function as a signal.
Journal: Applied Economics
Pages: 1379-1394
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218427
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218427
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Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1379-1394
Template-Type: ReDIF-Article 1.0
Author-Name: Nathan Berg
Author-X-Name-First: Nathan
Author-X-Name-Last: Berg
Author-Name: Todd Gabel
Author-X-Name-First: Todd
Author-X-Name-Last: Gabel
Title: Who was affected by new welfare reform strategies? Microdata estimates from Canada
Abstract:
A heterogeneous mix of aggressive welfare reforms took effect in different provinces and years starting in the 1990s. Welfare participation rates subsequently declined. Previous investigations of these declines focused on cuts in benefits and stricter eligibility requirements. This article focuses instead on work requirements, diversion, earning exemptions and time limits – referred to jointly as new welfare reform strategies – while controlling for benefit levels, eligibility requirements, province-specific labour market conditions and GDP growth, as well as individual-level socio-economic information. Province-year-specific variation in new reform strategies produce estimates implying that their presence is associated with a large decline in welfare participation of 1.3 percentage points (14% relative to the unconditional mean participation rate of 9.2%). Our coding scheme generates new measures of policy variation that distinguish reductions in benefit levels and tighter eligibility restrictions from new welfare reform strategies, helping identify how different subpopulations responded to different kinds of welfare reforms. Estimates from 46 subpopulations demonstrate that immigrants, native Canadians, single parents and disabled people were substantially more likely to be affected by aggressive new attempts to limit welfare participation than other Canadians receiving social assistance.
Journal: Applied Economics
Pages: 1395-1413
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218428
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218428
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Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1395-1413
Template-Type: ReDIF-Article 1.0
Author-Name: Michael S. Pagano
Author-X-Name-First: Michael S.
Author-X-Name-Last: Pagano
Title: How have global financial institutions responded to the challenges of the post-crisis era?
Abstract:
The study examines the largely unexplored effect of changes in the competitive landscape for large, global financial institutions on their ability to take risks, as well as deploy capital and labour in an efficient manner based on a novel measure of inefficiency. The analysis shows during 2001–2013 that inefficiency peaked during the 2008 crisis period and has fallen back to levels close to pre-crisis periods. The model also performs well in out-of-sample forecasts of the financial firms’ future market values. These results suggest that large financial firms have been adjusting to the ‘new normal’ of the post-crisis period and thus are able to use capital and labour more efficiently within the constraints of current market conditions. In addition, a non-linear pattern between inefficiency and a firm’s asset size suggests that there might be an optimal scale for such firms in the $450–650 billion range.
Journal: Applied Economics
Pages: 1414-1425
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218429
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218429
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Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1414-1425
Template-Type: ReDIF-Article 1.0
Author-Name: Bethany Cooper
Author-X-Name-First: Bethany
Author-X-Name-Last: Cooper
Title: What drives compliance? An application of the theory of planned behaviour to urban water restrictions using structural equation modelling
Abstract:
This article presents analysis of households’ intentions to comply with government constraints on the use of urban water, or so-called water restrictions. The data are drawn from Australian cities and was collected during a severe drought. Structural equation modelling is employed to operationalize constructs taken from the theory of planned behaviour and to answer important policy questions related to compliance. The modelled data support the view that attitudes, social norms and perceived behavioural control (PBC) have a positive and significant influence on intentions to comply. PBC has the strongest influence on intentions, suggesting policy directed at assisting households to meet regulatory criteria might be at least as effective as advertising expenditures aimed at shaping attitudes and norms. Importantly, intentions to comply are also shown to have a positive and significant influence on reported compliance behaviour.
Journal: Applied Economics
Pages: 1426-1439
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218430
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218430
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Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1426-1439
Template-Type: ReDIF-Article 1.0
Author-Name: Augusto Cerqua
Author-X-Name-First: Augusto
Author-X-Name-Last: Cerqua
Author-Name: Giorgio Di Pietro
Author-X-Name-First: Giorgio
Author-X-Name-Last: Di Pietro
Title: Natural disasters and university enrolment: evidence from L’Aquila earthquake
Abstract:
Although there are several studies looking at the effect of natural disasters on economic growth, less attention has been dedicated to their impact on educational outcomes, especially in more developed countries. We use the synthetic control method to examine how the L’Aquila earthquake affected subsequent enrolment at the local university. This issue has wide economic implications as the University of L’Aquila made a large contribution to the local economy before the earthquake. Our results indicate that the earthquake had no statistically significant effect on first-year enrolment at the University of L’Aquila in the three academic years after the disaster. This natural disaster, however, caused a compositional change in the first-year student population, with a substantial increase in the number of students aged 21 or above. This is likely to have been driven by post-disaster measures adopted in order to mitigate the expected negative effects on enrolment triggered by the earthquake.
Journal: Applied Economics
Pages: 1440-1457
Issue: 14
Volume: 49
Year: 2017
Month: 3
X-DOI: 10.1080/00036846.2016.1218431
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1218431
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Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1440-1457
Template-Type: ReDIF-Article 1.0
Author-Name: Ákos Dombi
Author-X-Name-First: Ákos
Author-X-Name-Last: Dombi
Author-Name: István Dedák
Author-X-Name-First: István
Author-X-Name-Last: Dedák
Title: Public debt and economic growth: what do neoclassical growth models teach us?
Abstract:
This paper aims to quantify the crowding-out effect of public debt and the related loss in long-run output in neoclassical growth models. To accomplish this task, we incorporate the government sector into the Ramsey–Cass–Koopmans (RCK) model, the Blanchard model and the Solow model, which differ only in their assumptions concerning the consumption behaviour of households. We also introduce a general framework that is capable of gauging the burden of public debt in a neoclassical world in the case of any type of consumption behaviour. Our results are threefold. First, contrary to the RCK model, public debt reduces long-run output in the Blanchard model and the Solow model, although to a different extent: the crowding-out effect is marginal in the former, whereas it can be very large in the latter. Second, the burden of public debt is country-specific depending crucially on the saving rate and the population growth rate. Finally, in developed countries the upper limit of the output loss related to public debt is moderate at best even if distortionary taxes are taken into account.
Journal: Applied Economics
Pages: 3104-3121
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1508869
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1508869
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Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3104-3121
Template-Type: ReDIF-Article 1.0
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Wael Louhichi
Author-X-Name-First: Wael
Author-X-Name-Last: Louhichi
Author-Name: Mohamed Arbi Madani
Author-X-Name-First: Mohamed Arbi
Author-X-Name-Last: Madani
Title: On the relationship between energy returns and trading volume: a multifractal analysis
Abstract:
Forecasting and modelling commodities price movements and the activity of energy markets are of real interest to investors and policymakers, especially during turbulent times. This study investigates the volume–returns relationship for two major energy markets (oil and gas) during the recent global financial crisis. Unlike previous studies, we examine this relationship by applying an original fractal approach to intraday data, which has the advantage of accounting for further non-normality, nonstationarity, and fat-tailedness properties. Our study provides two interesting findings. First, we find a significant multifractal relationship between returns and volume in both markets and across all timescales, suggesting nonlinearity in the cross-correlation between returns and volume and rejecting the efficiency assumption. Second, the measure of multifractality in this relationship shows that the magnitude of the fluctuations during bearish and bullish trends affects the volume–return relationship differently, and that the oil market exhibits higher volatility than does the gas market.
Journal: Applied Economics
Pages: 3122-3136
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564122
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564122
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Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3122-3136
Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio La Rocca
Author-X-Name-First: Maurizio
Author-X-Name-Last: La Rocca
Author-Name: Tiziana La Rocca
Author-X-Name-First: Tiziana
Author-X-Name-Last: La Rocca
Author-Name: Raffaele Staglianò
Author-X-Name-First: Raffaele
Author-X-Name-Last: Staglianò
Author-Name: Pino Vecellio
Author-X-Name-First: Pino
Author-X-Name-Last: Vecellio
Author-Name: Fabiola Montalto
Author-X-Name-First: Fabiola
Author-X-Name-Last: Montalto
Title: Gender diversity, cash holdings and the role of the institutional environment: empirical evidence in Europe
Abstract:
While substantial evidence is emerging internationally on higher risk aversion among women than among men, there is less evidence on women’s business choices. We explore some of the reasons for the relationship between gender diversity and cash holdings. Specifically, this paper focuses on the choices involving the stock of cash held by firms in which women have executive roles and can consequently exert a crucial influence on the firms themselves. We estimate our proposed empirical models using a dataset of 12,466 observations from 18 European countries. We find a positive relationship between the presence of women with executive roles in the firm and cash holdings. Women tend to make more conservative choices probably because they are more risk averse than men are. This propensity has a relevant impact on the financial choices of firms when women play a leading role. Notably, the study demonstrates that the institutional environment and industry differences moderate our baseline relationship.
Journal: Applied Economics
Pages: 3137-3152
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566687
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566687
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Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3137-3152
Template-Type: ReDIF-Article 1.0
Author-Name: S. Endres
Author-X-Name-First: S.
Author-X-Name-Last: Endres
Author-Name: J. Stübinger
Author-X-Name-First: J.
Author-X-Name-Last: Stübinger
Title: Optimal trading strategies for Lévy-driven Ornstein–Uhlenbeck processes
Abstract:
This study derives an optimal pairs trading strategy based on a Lévy-driven Ornstein–Uhlenbeck process and applies it to high-frequency data of the S&P 500 constituents from 1998 to 2015. Our model provides optimal entry and exit signals by maximizing the expected return expressed in terms of the first-passage time of the spread process. An explicit representation of the strategy’s objective function allows for direct optimization without Monte Carlo methods. Categorizing the data sample into 10 economic sectors, we depict both the performance of each sector and the efficiency of the strategy in general. Results from empirical back-testing show strong support for the profitability of the model with returns after transaction costs ranging from 31.90% p.a. for the sector ‘Consumer Staples’ to 278.61% p.a. for the sector ‘Financials’. We find that the remarkable returns across all economic sectors are strongly driven by model parameters and sector size. Jump intensity decreases over time with strong outliers in times of high market turmoil. The value-add of our Lévy-based model is demonstrated by benchmarking it with quantitative strategies based on Brownian motion-driven processes.
Journal: Applied Economics
Pages: 3153-3169
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566688
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566688
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Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3153-3169
Template-Type: ReDIF-Article 1.0
Author-Name: Lan Thanh Nguyen
Author-X-Name-First: Lan Thanh
Author-X-Name-Last: Nguyen
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Author-Name: Parmendra Sharma
Author-X-Name-First: Parmendra
Author-X-Name-Last: Sharma
Title: SME credit constraints in Asia’s rising economic star: fresh empirical evidence from Vietnam
Abstract:
This study provides a fresh look at the SME sector’s economic backbone vis-à-vis credit constraint dichotomy in Vietnam—Asia’s rising economic star. The study uses data from the Survey of Manufacturing SMEs in Vietnam from 2005 to 2013 and adopts a two-step Heckman modelling strategy to single out firms with formal financing needs that are credit constrained. Results show that several characteristics—including firm size, investment, financial assets, leverage, equity, registration, gender of owner, age, and education—significantly affect the likelihood of either credit constraints or demand. The main results do not change even when the issue of endogeneity is dealt with. Particularly, we provide evidence that unobserved factors that increase the probability of debt demand also increase the probability of being constrained. Policy implications are discussed.
Journal: Applied Economics
Pages: 3170-3183
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1569196
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1569196
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Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3170-3183
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Pierre Gueyié
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Gueyié
Author-Name: Alaa Guidara
Author-X-Name-First: Alaa
Author-X-Name-Last: Guidara
Author-Name: Van Son Lai
Author-X-Name-First: Van Son
Author-X-Name-Last: Lai
Title: Banks’ non-traditional activities under regulatory changes: impact on risk, performance and capital adequacy
Abstract:
Using the big six Canadian chartered banks quarterly financial statements and daily stock market data from 1982 to 2018, we examine the impact of non-interest income on Canadian banks’ risk, performance and capital under the different major regulatory changes made to the Bank Act of Canada. Our results show that Canadian banks’ expansion into non-traditional activities had slightly decreased their risks and significantly improved their performance benefitting from income diversification. Moreover, while adhering to capital adequacy regulation, reshuffling banks’ portfolio towards non-traditional activities did not reduce Canadian banks’ capital ratio. In spite of the re-regulation towards universal banking against ring-fencing, this feature buttresses the effectiveness of capital adequacy regulation in Canada in linking banks capital allocation with their risk taking.
Journal: Applied Economics
Pages: 3184-3197
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1569197
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1569197
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Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3184-3197
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Calcagnini
Author-X-Name-First: Giorgio
Author-X-Name-Last: Calcagnini
Author-Name: Francesco Perugini
Author-X-Name-First: Francesco
Author-X-Name-Last: Perugini
Title: Income distribution dynamics among Italian provinces. The role of Bank Foundations
Abstract:
This paper investigates the convergence process and the distribution dynamics of income among Italian NUTS-3 provinces between 2003 and 2011. Findings show the existence of multiple steady-state equilibria which is consistent with the well-documented persistence in income disparities among Italian provinces. The role of grant-making activities by Bank Foundations is assessed on a conditioning scheme. Results suggest that Bank Foundations can affect the shape of the distribution of income and, in the long run, reduce polarization with a tendency for income to collapse towards a unimodal distribution.
Journal: Applied Economics
Pages: 3198-3211
Issue: 29
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1572866
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1572866
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Handle: RePEc:taf:applec:v:51:y:2019:i:29:p:3198-3211
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Sznajderska
Author-X-Name-First: Anna
Author-X-Name-Last: Sznajderska
Title: The role of China in the world economy: evidence from a global VAR model
Abstract:
Since the 1980s, China has experienced very high economic growth, and its share in global trade has increased rapidly. Currently, however, the Chinese economy is rebalancing, and its growth is slowing. This paper investigates the spillover effects on other countries of a negative demand shock and negative stock price shock in the Chinese economy. We apply a global vector autoregressive model, which enables us to model international linkages between countries. Our results show that a one per cent negative China GDP shock reduces global growth by 0.22% in the short run. We find that GDP shock affects emerging economies more strongly than advanced economies. We also show that a stock price shock affects only emerging economies and does not affect advanced economies.
Journal: Applied Economics
Pages: 1574-1587
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527464
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527464
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Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1574-1587
Template-Type: ReDIF-Article 1.0
Author-Name: Yasir Riaz
Author-X-Name-First: Yasir
Author-X-Name-Last: Riaz
Author-Name: Choudhry Tanveer Shehzad
Author-X-Name-First: Choudhry Tanveer
Author-X-Name-Last: Shehzad
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: Pro-cyclical effect of sovereign rating changes on stock returns: a fact or factoid?
Abstract:
This article examines the effect of changes in sovereign credit ratings and their outlook on the stock market returns of European countries at different phases of business cycle. Using standard four-factor model, it records a significant average marginal effect of credit rating announcements on stock market returns. Both magnitude and significance of the effect vary with business cycle and across announcement types. However, we do not find evidence of pro-cyclical effect of sovereign rating and outlook changes on stock returns. Our results show that stock markets react more negatively to rating downgrades in recovery phases and more positively to rating upgrades in contractionary period. Both results are statistically significant and robust to various sensitivity tests.
Journal: Applied Economics
Pages: 1588-1601
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527465
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527465
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Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1588-1601
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Guo
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Guo
Author-Name: Chad D. Meyerhoefer
Author-X-Name-First: Chad D.
Author-X-Name-Last: Meyerhoefer
Author-Name: Lizhong Peng
Author-X-Name-First: Lizhong
Author-X-Name-Last: Peng
Title: Participation in school-sponsored sports and academic spillovers: new evidence from the early childhood longitudinal survey
Abstract:
The link between participation in school-sponsored sports and academic performance has been studied extensively in the literature. Whilst previous studies tend to show positive academic spillovers, it remains unclear whether these positive associations are primarily driven by selection into sports. We investigate this issue using data on middle school children drawn from the Early Childhood Longitudinal Study, Kindergarten Class of 1998–1999. Due to the lack of credible instrumental variables for sports participation, we establish bounds for the relationship between school sports and academics using a combination of the propensity score matching method and an approach that uses selection on observed factors as a guide to selection on unobserved factors. We find that the association between participation in school-sponsored sports and academic performance as measured by standardised test scores in reading, math and science ranges from null to negative. Overall, our results suggest that failure to account for selection may result in a misleading positive correlation between sports participation and academic performance.
Journal: Applied Economics
Pages: 1602-1620
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527466
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527466
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Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1602-1620
Template-Type: ReDIF-Article 1.0
Author-Name: Moh’d Al-Azzam
Author-X-Name-First: Moh’d
Author-X-Name-Last: Al-Azzam
Title: Financing microfinance institutions: subsidies or deposit mobilisation
Abstract:
According to conventional wisdom, dependence on subsidies cannot achieve the double bottom lines of microfinance institutions (MFIs): outreach and financial sustainability. The application of market-based principles to microfinancing, such as deposit mobilisation, has been long suggested as an answer to this problem. This paper documents the following findings regarding this issue. First, deposit mobilisation crowds out subsidies. Second, subsidies and deposit mobilisation reduce microcredit interest rates and allow MFIs to reach poorer borrowers. Third, subsidies and deposit mobilisation worsen financial sustainability. Fourth, subsidies reduce repayment rates, while deposit mobilisation has no impact on repayment. Overall, the results suggest that neither subsidies nor deposit mobilisation solve the traditional problem of trade-off between outreach and financial sustainability.
Journal: Applied Economics
Pages: 1621-1633
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527467
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527467
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Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1621-1633
Template-Type: ReDIF-Article 1.0
Author-Name: Hyeon-seung Huh
Author-X-Name-First: Hyeon-seung
Author-X-Name-Last: Huh
Author-Name: David Kim
Author-X-Name-First: David
Author-X-Name-Last: Kim
Title: Sources of fluctuations in hours worked for Canada, Germany, Japan and the U.S.: a sign restriction VAR approach
Abstract:
This study empirically examines the sources of fluctuations in hours worked in Canada, Germany, Japan and the U.S. It is particularly motivated by Galí’s (1999) VAR study, which demonstrates that a positive technology shock reduces hours worked, at least in the short run. However, in the present study, a technology shock is identified without recourse to Galí’s long-run restriction, which has been subject to active controversy. Furthermore, this study uncovers other important sources of fluctuations in hours worked to reflect the concern, raised by numerous studies, that technology shocks leave most variations in hours worked unexplained. Specifically, there are six shocks underlying our model, and they are identified using a set of sign restrictions. The empirical results confirm that in all four countries, a positive technology shock significantly reduces hours worked. This technology shock, along with labor supply and demand shocks, accounts for most of the short-term variations in hours worked. As the forecasting horizon increases, technology and demand shocks become less important, whereas labor supply shocks contribute to explaining the bulk of long-run variations in hours worked. Finally, the empirical relevance of Galí’s long-run identification restriction is tested and the results are related to those obtained using the sign restriction model.
Journal: Applied Economics
Pages: 1634-1646
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1528333
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528333
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Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1634-1646
Template-Type: ReDIF-Article 1.0
Author-Name: Eberhard Feess
Author-X-Name-First: Eberhard
Author-X-Name-Last: Feess
Author-Name: Helge Müller
Author-X-Name-First: Helge
Author-X-Name-Last: Müller
Author-Name: Ansgar Wohlschlegel
Author-X-Name-First: Ansgar
Author-X-Name-Last: Wohlschlegel
Title: Reimbursement schemes for hospitals: the impact of case and firm characteristics
Abstract:
We contribute to the debate on high-powered versus low-powered incentives in regulation by studying their heterogeneous impacts on different subpopulations, using data from the introduction of a high-powered prospective payment system (PPS) for hospital reimbursement in Germany. While no overall effect on quality or cost saving is found, our results support hypotheses drawn from an incentive and selection perspective: PPS reduces the length of stay of older relative to younger patients, of more severe relative to less severe cases, and in smaller relative to larger hospitals. Hospitals which adopted PPS earlier provide higher quality under PPS as proxied by the case-specific readmission rate. Our study also contributes to the health economic literature on hospital reimbursement as our data permits us to identify the treatment effect via different timings of adoption of PPS and to use a more accurate quality measure by following patients even when readmitted to other hospitals.
Journal: Applied Economics
Pages: 1647-1665
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1528334
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528334
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Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1647-1665
Template-Type: ReDIF-Article 1.0
Author-Name: Celil Aydin
Author-X-Name-First: Celil
Author-X-Name-Last: Aydin
Author-Name: Ömer Esen
Author-X-Name-First: Ömer
Author-X-Name-Last: Esen
Title: Does too much government spending depress the economic development of transition economies? Evidences from dynamic panel threshold analysis
Abstract:
This paper investigates the relationship between government size and economic growth and determines the optimal level of government spending to maximize economic growth. The paper applies a dynamic panel data analysis based upon a threshold model to test the threshold effect of government spending in 26 transition economies over the period spanning 1993–2016. According to the analysis results, government expenditures have a threshold effect on economic growth, and there is a non-linear relationship depicted as an Armey curve in these transition economies. The findings indicate that a government size above the threshold government spending level adversely affects economic growth, while a government size below the threshold level has a positive effect. Furthermore, there is a statistically significant relationship between the two variables above and below that optimal level, even if we divide the sample into developed and developing countries. Our findings suggest that governments in transition economies should consider optimal government size at around the estimated threshold level to support sustainable economic growth.
Journal: Applied Economics
Pages: 1666-1678
Issue: 15
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1528335
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528335
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Handle: RePEc:taf:applec:v:51:y:2019:i:15:p:1666-1678
Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: On the flow of funds accounts and inter-sectoral mobility of capital in India
Abstract:
This study uses the flow of funds accounts framework and undertakes an in-depth analysis of the inter-sectoral mobility of capital in India. Unlike previous studies, the FH model is estimated at the sectoral level using annual data for the period 1950–51 to 2012–13. The model estimated in one-regime setting with no structural break provides a weak and mixed support and that estimated in a sample-split setting with a single structural break provides no support for the presence of a long-run relationship between saving and investment for all the sectors. In contrast, the model estimated with multiple structural breaks provides dominant support for the presence of cointegration between saving and investment for all the sectors. The end-of-sample cointegration breakdown tests suggest the breakdowns of cointegration between saving and investment in all the sub-sample periods for the household and PCB sectors, but not for the public sector. The FOF accounts could be used to monitor the borrowing and lending operations of both financial and non-financial sectors and to identify any deformities in the system. The regulatory and supervisory policies need to be put in place promptly to resolve the identified deformities at their early stages, before they magnify and make the entire system dysfunctional.
Journal: Applied Economics
Pages: 4993-5011
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1584371
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584371
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Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:4993-5011
Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Sabine Gralka
Author-X-Name-First: Sabine
Author-X-Name-Last: Gralka
Title: The transient and persistent efficiency of Italian and German universities: a stochastic frontier analysis
Abstract:
Despite measures on the European level to increase the compatibility between the higher education sectors, the recent literature exposes variations in their efficiencies. To gain insights into these differences, we split the efficiency term according to the two management levels each university is confronted with. We separate short-term and long-term efficiency while controlling for unobserved institution-specific heterogeneity. We argue that the first term reflects the efficiency of the individual universities working within the country, while the second term echoes the influence of the overall country-specific higher education structure. The cross-country comparison displays whether efficiency differences between countries are related to the individual performance of their universities or their higher education structure. This allows more purposeful policy recommendations and expands the literature regarding the efficiency of universities in a fundamental way. Choosing Italy and Germany as two important illustrative examples, we show that the Italian higher education sector exhibits a higher overall efficiency value. With the individual universities working at the upper bound of efficiency in both countries, the remaining inefficiency and the gap between the countries are caused by persistent, structural inefficiency. Future measures should hence aim at the country-specific structure and not solely at the activities of single universities.
Journal: Applied Economics
Pages: 5012-5030
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1606409
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606409
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Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5012-5030
Template-Type: ReDIF-Article 1.0
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Cong Dong
Author-X-Name-First: Cong
Author-X-Name-Last: Dong
Title: Determinants of the global and regional CO2 emissions: What causes what and where?
Abstract:
Using the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model and an unbalanced panel dataset of 128 countries covering 1990–2014, this study aims to examine the key impact factors (KIFs) of the global and regional carbon dioxide (CO2) emissions and analyse the effectiveness of non-renewable and renewable energies. Given the potential cross-sectional dependence and slope heterogeneity, a series of econometric techniques allowing for cross-sectional dependence and slope heterogeneity is applied. The overall estimations imply that the KIFs at the global level are economic growth, followed by population size, non-renewable energy, and energy intensity in order of their impacts on CO2 emissions; conversely, the KIFs at the regional level vary across different regions and estimators. The results also suggest that renewable energy can lead to a decline in CO2 emissions at the global level. At the regional level, only for two regions (i.e., S. & Cent. America and Europe & Eurasia) renewable energy has a significant and negative effect on CO2 emissions, which may be affected by the share of renewable energy consumption in the primary energy mix. Finally, the results indicate varied causality relationships among the variables across regions.Abbreviations: AMG: Augmented mean group; BP: British Petroleum; BRICS: Brazil, Russia, India, China, and South Africa; CCEMG: Common correlated effects mean group; CD: Cross-section dependence; CIPS: Cross-sectionally augmented Im, Pesaran, and Shin; CO2: Carbon dioxide; PS: Population size; D-H: Dumitrescu-Hurlin; EI: Energy intensity; EU: European Union; EU-5: Germany, France, Italy, Spain, and the United Kingdom; Europe & Eurasia, Europe and Eurasia; GDP: Gross domestic product; IEA: International Energy Agency; KIF: Key impact factor; LM: Lagrange multiplier; Mtoe, Million tonnes oil equivalent; NRE: Non-renewable energy; RE: Renewable energy; S. & Cent. America, South and Central America; STIRPAT: Stochastic Impacts by Regression on Population, Affluence, and Technology; VECM: Vector error correction model; WDI: World Development Indicators
Journal: Applied Economics
Pages: 5031-5044
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1606410
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606410
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Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5031-5044
Template-Type: ReDIF-Article 1.0
Author-Name: Charlotte Fontan Sers
Author-X-Name-First: Charlotte
Author-X-Name-Last: Fontan Sers
Author-Name: Mazhar Mughal
Author-X-Name-First: Mazhar
Author-X-Name-Last: Mughal
Title: From Maputo to Malabo: public agricultural spending and food security in Africa
Abstract:
Africa is the world’s biggest battleground in the fight against hunger. African governments and the international development community have increasingly focused on finding ways and means to end hunger and ensure the right and access to food for the continent’s burgeoning population. Public spending on agriculture is one such measure. This study examines the role government spending on agriculture has played in enhancing the state of Africa’s food security over the past 25 years. We examine the existing relationship between the two, whether this relationship varies over time and space, and whether it depends on the amount spent. We explore various aspects of food security and check whether spending on research and development follows the same patterns as the overall public agricultural spending. We find some evidence of significant beneficial effects of public agricultural spending on food security but only for the countries which allocate greater proportions of their budgets to agriculture. Spending on agricultural research and development also shows a positive impact on Africa’s food security. There also exists some evidence supporting the temporal effects of public spending. We consider that the Maputo Declaration commitment to allocate at least 10% of public spending to agriculture pertinent.
Journal: Applied Economics
Pages: 5045-5062
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1606411
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606411
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Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5045-5062
Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Mei Chiang
Author-X-Name-First: Shu-Mei
Author-X-Name-Last: Chiang
Author-Name: Hung-Chun Liu
Author-X-Name-First: Hung-Chun
Author-X-Name-Last: Liu
Author-Name: Chien-Ming Huang
Author-X-Name-First: Chien-Ming
Author-X-Name-Last: Huang
Author-Name: Hsin-Fu Chen
Author-X-Name-First: Hsin-Fu
Author-X-Name-Last: Chen
Title: Transmission effects of the U.S. and China monetary policy shocks on the world
Abstract:
This paper applies the Markov-switching model to analyse the transition probabilities and generalized method of moments (GMM) with Newey–West heteroscedasticity and autocorrelation consistent covariance estimators (HAC) to examine the continuity of monetary policies in different countries when the U.S. and China change their monetary policies. Our results indicate that the euro area’s monetary authority continues to increase/decrease their money supply to stimulate/depress the economy. In Japan, long-term economic recession motivated the Japanese government to maintain a loose money supply. The continuity of Korea’s monetary policy in expansionary states lasts up to 5.1 years. Besides, the outcomes show the implementation of U.S. quantitative easing (QE), overnight reverse repurchase agreement (RRP), and Chinese RRP policies have significant spillover effects on other nations. Particularly, the effects on the euro area are the largest. Furthermore, although the monetary policies of China and the euro area seem to move in opposite directions, they are interdependent.
Journal: Applied Economics
Pages: 5063-5075
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610707
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610707
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Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5063-5075
Template-Type: ReDIF-Article 1.0
Author-Name: Prasanna Surathkal
Author-X-Name-First: Prasanna
Author-X-Name-Last: Surathkal
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Title: Effects of packers’ inventory and market power on price adjustments in the U.S. beef industry
Abstract:
This study examines effects of packers’ inventory and market power on their price adjustment behaviour in the U.S. beef industry. Econometric model used in the study allows inventory and market power variables to influence the speed-of-adjustment parameters in a three-regime threshold error-correction model. Results show that the two variables have a statistically significant impact on packers’ price adjustment behaviour when price decreases but not when price increases. When price decreases, inventory tends to accelerate the adjustment process whereas packers’ market power slows down the adjustment process. The hypothesis of symmetric adjustment towards long-run equilibrium during increasing and decreasing phases of price is not rejected when the effects of inventory and market power are considered in explaining packers’ price adjustment behaviour. However, when these two effects are ignored in the model specification, the hypothesis of symmetry is rejected such that the speed of adjustment in the increasing phase of price is faster than the adjustment speed in the decreasing phase of price, i.e. ‘rockets and feathers’ effect.
Journal: Applied Economics
Pages: 5076-5089
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610708
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610708
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Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5076-5089
Template-Type: ReDIF-Article 1.0
Author-Name: Stefanie R. Ramirez
Author-X-Name-First: Stefanie R.
Author-X-Name-Last: Ramirez
Title: An examination of firm licensing behaviour after a payday-loan ban
Abstract:
In 2008, Ohio enacted the Short-Term Loan Law capping interest rates to 28% APR, effectively banning the industry. Previous analysis has shown that while the policy was effective in eliminating the payday lending industry, expansion occurred within the pawnbroker, small-loan and second-mortgage lending industries in effective policy periods. Extending this previous analysis, using branch-level licensing records from the Ohio Division of Financial Institutions, this study examines the firm’s decision to license at the branch-level both with a zip code and within a county. I predict the effects of the ban on the likelihood of entry in the small-loan and second-mortgage industries while also controlling for incumbent status as a payday lender. Results at the zip-code level show that the likelihood of entering the lending market as a small-loan lender increases by 35.4% and initiating a second-mortgage license increases by 6.3% after the signing the Short-Term Loan Law. At the county level, the probability of initiating a small-loan licenses increases by 15.3%, while the likelihood initiating a second-mortgage license increases by 6.3%. At the county level, branches previously operating as payday lenders are 1.1% more likely to re-license as small-loan lenders, though has no effect on licensing as a second-mortgage lender.
Journal: Applied Economics
Pages: 5090-5103
Issue: 46
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610709
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610709
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Handle: RePEc:taf:applec:v:51:y:2019:i:46:p:5090-5103
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Cowling
Author-X-Name-First: Marc
Author-X-Name-Last: Cowling
Author-Name: Paul Robson
Author-X-Name-First: Paul
Author-X-Name-Last: Robson
Author-Name: Ian Stone
Author-X-Name-First: Ian
Author-X-Name-Last: Stone
Author-Name: Gordon Allinson
Author-X-Name-First: Gordon
Author-X-Name-Last: Allinson
Title: Loan guarantee schemes in the UK: the natural experiment of the enterprise finance guarantee and the 5 year rule
Abstract:
Loan guarantee schemes have existed since 1953 (in the US) and are widely used throughout the world to provide financial support to smaller firms by guaranteeing loans from commercial banks. The UK government has been an active supporter of loan guarantees since 1981, and has a long track record of modifying its scheme to reflect changing market conditions and the financing needs of its SME sector. Arguably the two most significant changes occurred in 2008 when the 5-Year Rule on eligibility was removed and in 2009 when the long-standing Small Firms Loan Guarantee Scheme was replaced by the Enterprise Finance Guarantee Scheme. We treat the removal of the 5-Year Rule as a natural policy experiment and empirically question whether, on economic grounds, this was a sensible policy. Our findings suggest that the 5-Year Rule was a better policy choice with regard to employment but had no impact on sales growth.
Journal: Applied Economics
Pages: 2210-2218
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392004
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392004
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Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2210-2218
Template-Type: ReDIF-Article 1.0
Author-Name: Dakshina G. De Silva
Author-X-Name-First: Dakshina G.
Author-X-Name-Last: De Silva
Author-Name: Soon-Cheul Lee
Author-X-Name-First: Soon-Cheul
Author-X-Name-Last: Lee
Title: Does the role of observer countries in the regional trade agreement matter for intra-regional trade ?
Abstract:
This article investigates the effects of trade by observed economies on the intra-regional trade by South Asian Association for Regional Cooperation (SAARC) members using Poison pseudo maximum likelihood estimator (PPML) gravity models with panel data over the period 2008–2014. Eight SAARC members and eight observed countries, including the EU, are analysed in capturing the trade effect of observed economies on intra-regional trade in SAARC. This article provides an empirical measure of observers’ trade, FDI and Official development assistance (ODA) with SAARC if the exports and imports of observers to/from SAARC have positive or negative signs for intra-regional exports and imports. The results show that the exports and imports of observers to SAARC members have positive effects on bilateral exports among the members. The FDI of observers reduces the bilateral intra-imports in SAARC and ODA also has a negative effect on bilateral exports among the members. These results imply that the imports by SAARC members from observer countries increase intra-regional trade in the region. The FDI and ODA increase and decrease intra-regional trade in SAARC, respectively, implying that the policies for both FDI inflow from observers and efficient aid management are needed to increase regional welfare. The study also recommends that trade between SAARC members and its observers help to increase intra-regional trade in SAARC.
Journal: Applied Economics
Pages: 2219-2228
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392005
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392005
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Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2219-2228
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M Blau
Author-X-Name-First: Benjamin M
Author-X-Name-Last: Blau
Author-Name: Ryan J Whitby
Author-X-Name-First: Ryan J
Author-X-Name-Last: Whitby
Title: Skewness, short interest and the efficiency of stock prices
Abstract:
We examine the association between return skewness, short interest and the efficiency of stock prices. Since preferences for skewness have been shown to impact asset prices, we examine how skewness relates to market efficiency. We find that stocks with positive skewness are less efficient, which might be explained by investor preferences for positive skewness. Next, we document that short interest reduces both total skewness and idiosyncratic skewness. Finally, while research has shown that short selling can improve the efficiency of markets generally, we show that short interest’s ability to improve market efficiency is strongest in stocks with the highest skewness.
Journal: Applied Economics
Pages: 2229-2242
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394971
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394971
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Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2229-2242
Template-Type: ReDIF-Article 1.0
Author-Name: A. Senol Oztekin
Author-X-Name-First: A. Senol
Author-X-Name-Last: Oztekin
Author-Name: Krishnan Dandapani
Author-X-Name-First: Krishnan
Author-X-Name-Last: Dandapani
Author-Name: Suchismita Mishra
Author-X-Name-First: Suchismita
Author-X-Name-Last: Mishra
Author-Name: Sascha Strobl
Author-X-Name-First: Sascha
Author-X-Name-Last: Strobl
Title: Understanding spread in the electronic futures markets: financial crisis perspective
Abstract:
This article analyses bid–ask spreads in U.S. electronic futures markets around the recent financial crisis. We decompose the bid–ask spread into three components – order processing, inventory holding and adverse selection costs – and show that adverse selection costs increased the most during the crisis while order processing costs are the largest cost component. Volume significantly affects inventory holding and order processing costs, whereas volatility only influences inventory holding costs. The crisis period had a significant effect on these relations. This study extends the existing literature on liquidity in equity to futures markets.
Journal: Applied Economics
Pages: 2243-2250
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394972
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394972
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Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2243-2250
Template-Type: ReDIF-Article 1.0
Author-Name: Štefan Lyócsa
Author-X-Name-First: Štefan
Author-X-Name-Last: Lyócsa
Author-Name: Tomáš Výrost
Author-X-Name-First: Tomáš
Author-X-Name-Last: Výrost
Title: To bet or not to bet: a reality check for tennis betting market efficiency
Abstract:
We present evidence that the tennis betting market appears to be much more efficient than suggested by previous studies. More specifically, we study the market efficiency by studying the forecasting performance of a diversified set of 40 betting rules in two ways: by searching for the existence of a return differential between betting rules and by analysing the profitability of betting rules. Even though individual tests provide evidence that, within our universe of betting rules, positive returns can be achieved, when data-snooping bias is taken into account, the evidence diminishes. Subsequently, we also find very little evidence of return differentials between betting rules. These results cast doubts on previous research as they suggest that when the potential detrimental effects of data-dreading are taken into account, betting markets in general might not, ultimately, be so inefficient.
Journal: Applied Economics
Pages: 2251-2272
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394973
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394973
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Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2251-2272
Template-Type: ReDIF-Article 1.0
Author-Name: Marek A. Dąbrowski
Author-X-Name-First: Marek A.
Author-X-Name-Last: Dąbrowski
Author-Name: Monika Papież
Author-X-Name-First: Monika
Author-X-Name-Last: Papież
Author-Name: Sławomir Śmiech
Author-X-Name-First: Sławomir
Author-X-Name-Last: Śmiech
Title: Uncovering the link between a flexible exchange rate and fundamentals: the case of Central and Eastern European economies
Abstract:
This article examines the link between a nominal exchange rate and macrofundamentals in Central and Eastern European (CEE) countries. We use the model based on the monetary policy rule as a theoretical framework that explains the relations between the exchange rate and price level, risk premium, output gap, and expected inflation. It allows for endogeneity of the monetary policy – the issue ignored in the widely used monetary model. The sample covers the period January 2000 – December 2014, so the data are not plagued by high-inflation differentials characteristic for the early transition period and include countries with relatively flexible exchange rates. Our empirical strategy employs the panel error correction model that allows for cross-sectional dependence and a series of panel causality tests. The main finding is that the nominal exchange rates in CEE countries are not disconnected from macrofundamentals implied by the Taylor rule-based model. More specifically, we find that there is a strong cross-sectional dependence among CEE countries, exchange rates Granger-cause macrofundamentals and tend to revert to the long-run relation, and that the results are robust to the ‘extraordinary circumstances’ argument, i.e. do not rest on the dynamics during the global financial crisis.
Journal: Applied Economics
Pages: 2273-2296
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394974
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394974
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Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2273-2296
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements
Author-X-Name-First: Kenneth
Author-X-Name-Last: Clements
Author-Name: Yihui Lan
Author-X-Name-First: Yihui
Author-X-Name-Last: Lan
Author-Name: Jiawei Si
Author-X-Name-First: Jiawei
Author-X-Name-Last: Si
Title: Uncertainty in currency mispricing
Abstract:
Declaring a currency to be mispriced is fraught with uncertainties. In this article, these uncertainties are explicitly recognized in a model of pricing a homogeneous commodity around the world. This allows for a common driver of prices, due to a base-currency effect, and country-specific factors that lead to departures from absolute PPP on account of income differences, local taxes and charges, etc. This approach leads to estimates of currency mispricing whose significance can be tested in the usual way. Using Big Mac prices, we show that the approach has advantages over the popular Big Mac Index to currency valuation.
Journal: Applied Economics
Pages: 2297-2312
Issue: 20
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1394975
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1394975
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Handle: RePEc:taf:applec:v:50:y:2018:i:20:p:2297-2312
Template-Type: ReDIF-Article 1.0
Author-Name: Xin Geng
Author-X-Name-First: Xin
Author-X-Name-Last: Geng
Author-Name: Manuel A. Hernandez
Author-X-Name-First: Manuel A.
Author-X-Name-Last: Hernandez
Title: Aid, policies and growth: a nonlinear reassessment
Abstract:
The association between foreign aid and growth has been controversial for decades and the evidence is quite mixed with results sensitive to data samples and modelling approaches. We reassess the relationship between aid, policy and growth implementing a novel semiparametric estimation method that allows for nonlinearities and controls for endogeneity. The results show that the aid-policy-growth relationship is complex. Aid inflows do not seem growth-enhancing, except at very high levels (above 7% of Aid/GDP), whereas the effect may arrive with a lag at lower levels. Policy improvements are positively correlated with growth at high policy levels (above the median value) but better policies do not increase aid effectiveness.
Journal: Applied Economics
Pages: 1617-1633
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677847
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677847
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Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1617-1633
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph A. Mauro
Author-X-Name-First: Joseph A.
Author-X-Name-Last: Mauro
Author-Name: Sophie Mitra
Author-X-Name-First: Sophie
Author-X-Name-Last: Mitra
Title: Youth idleness in Eastern Europe and Central Asia before and after the 2009 crisis
Abstract:
Youth idleness is a significant problem in many countries, including in Eastern Europe and Central Asia (ECA) where it has rarely been studied. Labour market and education policies need to be based on a strong knowledge base on the Not in Employment, Education or Training (NEET) population. This paper uses micro-level data from the early 2000s through 2011 to fill knowledge gaps. NEET rates for different age intervals, gender and educational attainment are investigated for the ECA region and countries within. We find that the NEET rate in ECA was declining prior to the 2009 crisis and increased afterwards, with a more pronounced impact on males. Our findings reveal considerable heterogeneity across countries likely due to varying demographics, labour market conditions and education policies. Policies on idle youths in this region need to be tailored to varying national situations. This paper also suggests pathways for future research.Abbreviations: NEET: Not in Employment, Education or Training; ECA: Eastern Europe and Central Asia
Journal: Applied Economics
Pages: 1634-1655
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677848
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677848
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Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1634-1655
Template-Type: ReDIF-Article 1.0
Author-Name: Tinna Laufey Ásgeirsdóttir
Author-X-Name-First: Tinna Laufey
Author-X-Name-Last: Ásgeirsdóttir
Author-Name: Kristín Helga Birgisdóttir
Author-X-Name-First: Kristín Helga
Author-X-Name-Last: Birgisdóttir
Author-Name: Hanna Björg Henrysdóttir
Author-X-Name-First: Hanna Björg
Author-X-Name-Last: Henrysdóttir
Author-Name: Thorhildur Ólafsdóttir
Author-X-Name-First: Thorhildur
Author-X-Name-Last: Ólafsdóttir
Title: Health-related quality of life and compensating income variation for 18 health conditions in Iceland
Abstract:
Using data from an Icelandic health and well-being survey, carried out in 2007, 2009, and 2012, we estimate the value of health-related suffering in two different ways. Our primary aim is to obtain the monetary compensation needed to maintain the same level of well-being with and without 18 health conditions using the compensating-income-variation approach. This method employs individual well-being measures with no hypothetical situations involved, thus offering a solution to biases of frequently used methods to value non-marketed goods. We also use zero-one normalization of regression coefficients to estimate health-related quality-of-life weights. Results from monetary valuations indicate that 1,685,594 USD are needed per year to compensate for the presence of melancholy, 206,273 USD for frequent headaches, 153,396 USD for severely low vision, and 80,824 USD for severe monthly menstrual cramps. This research adds to the literature by employing two rarely used methods to a range of health conditions. By valuing several different conditions with the same sample and methodology this research provides a ranking between the conditions, aiding policy makers in prioritizing scarce resources. We do however advise against using the normalization method for policy purposes at this point, due to the deviation of results from the general literature.
Journal: Applied Economics
Pages: 1656-1670
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677849
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677849
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Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1656-1670
Template-Type: ReDIF-Article 1.0
Author-Name: Darja Peljhan
Author-X-Name-First: Darja
Author-X-Name-Last: Peljhan
Author-Name: Katja Zajc Kejžar
Author-X-Name-First: Katja
Author-X-Name-Last: Zajc Kejžar
Author-Name: Nina Ponikvar
Author-X-Name-First: Nina
Author-X-Name-Last: Ponikvar
Title: OWNERSHIP STRUCTURE AND FIRM EXIT ROUTES
Abstract:
Our study presents empirical evidence about the role of ownership structure for firm exit probability by explicitly differentiating between distinct exit routes (bankruptcy and forced liquidation, voluntary liquidation, mergers and acquisitions – M&A, and removal from the court register). Based on the population of Slovenian firms in the 2006–2012 period and using multinomial probit, our findings support the predictions of agency theory. Ownership concentration, share of the largest owner, and the difference in shares between two largest owners all decrease the likelihood of exit for all studied exit routes but M&A. The magnitude of their impact is largest for exits, in which owners play a decisive role, i.e. voluntary liquidation and removal. The link between the number of primary owners and exit likelihood is U-shaped with the lowest exit probability for firms with around two owners.
Journal: Applied Economics
Pages: 1671-1686
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677850
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677850
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Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1671-1686
Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Merkle
Author-X-Name-First: Jessica
Author-X-Name-Last: Merkle
Author-Name: Michelle Phillips
Author-X-Name-First: Michelle
Author-X-Name-Last: Phillips
Title: A tale of two unions: divergent platforms and their constituencies
Abstract:
The median voter theorem has regularly been used in economics to represent the behaviour of teachers unions. Little empirical work, however, tests whether this framework is a good fit for teachers unions. We examine voting behaviour in union representative elections between the National Education Association and the American Federation of Teachers and find evidence of divergent constituencies. We investigate whether the median voter explains the outcomes of elections in 1977–1979. If both teachers unions select the platform desired by the median voter, there should be no systematic differences in voter preferences for unions. We find that these unions were fundamentally different and attracted distinct voting coalitions. The main implication of this study is that researchers should consider these two unions, and their effect on districts, as distinct.
Journal: Applied Economics
Pages: 1687-1703
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677851
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677851
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Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1687-1703
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Avenali
Author-X-Name-First: Alessandro
Author-X-Name-Last: Avenali
Author-Name: Andrea Boitani
Author-X-Name-First: Andrea
Author-X-Name-Last: Boitani
Author-Name: Giuseppe Catalano
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Catalano
Author-Name: Giorgio Matteucci
Author-X-Name-First: Giorgio
Author-X-Name-Last: Matteucci
Author-Name: Andrea Monticini
Author-X-Name-First: Andrea
Author-X-Name-Last: Monticini
Title: Standard costs of regional public rail passenger transport: evidence from Italy
Abstract:
The paper estimates the standard cost in Italian regional public rail passenger transport services (LPTR), depending on service characteristics. The results highlight the crucial role of: number of seats per ride, commercial speed, service size and length of rail tracks. The model also shows the positive link between investment in rolling stock and the unit cost of the service. Finally, based on the empirical evidence, we propose regulatory adjustments to accomplish policy targets regarding the fair allocation of public LPTR funds to Regions and Local Authorities and a more efficient use of (scarce) local and national public resources.
Journal: Applied Economics
Pages: 1704-1717
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677852
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677852
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Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1704-1717
Template-Type: ReDIF-Article 1.0
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Identifying uncertainty shocks using world diffusion index
Abstract:
In this study, a world diffusion index is developed to measure how uncertainty shocks have diffused among 179 economies and caused contractions in the world growth cycles. This index is simply defined as the percentage share of the number of expanding countries. It identifies four uncertainty shocks: the oil crisis of 1973; the bursting of the information technology bubble in 2000; the credit crunch of 2007; and the European debt crisis of 2010. To overcome the problem of data unavailability in emerging market economies, the annual GDP values of 179 economies are transformed through temporal disaggregation, and the dating of quarterly growth cycles is implemented as per the OECD method. The empirical findings indicate that each of the uncertainty shocks caused severe contractions in the advanced economies but that the emerging market economies experienced such contractions only during the credit crunch of 2007. Policy implications are also discussed.
Journal: Applied Economics
Pages: 1718-1732
Issue: 15
Volume: 52
Year: 2020
Month: 3
X-DOI: 10.1080/00036846.2019.1677853
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1677853
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Handle: RePEc:taf:applec:v:52:y:2020:i:15:p:1718-1732
Template-Type: ReDIF-Article 1.0
Author-Name: Frederick Dongchuhl Oh
Author-X-Name-First: Frederick Dongchuhl
Author-X-Name-Last: Oh
Author-Name: Junghum Park
Author-X-Name-First: Junghum
Author-X-Name-Last: Park
Title: Credit ratings and corporate disclosure behaviour: evidence from regulation fair disclosure in Korea
Abstract:
This article provides evidence that firms with high market expectations disclose more information to investors, utilizing the fair disclosure regulation in Korea to proxy for their disclosure choices. This finding is consistent with the argument that in order to retain their dominant positions, highly evaluated firms are more concerned about the market’s perception of them as providers of timely and detailed disclosure. We also find that the impact of market expectations on disclosure is more pronounced for chaebol firms. Combined with prior research on the relationship between firm performance and voluntary disclosure, we provide important implications for the determinants of corporate disclosure
Journal: Applied Economics
Pages: 3481-3494
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262521
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262521
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Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3481-3494
Template-Type: ReDIF-Article 1.0
Author-Name: María del Carmen Ramos-Herrera
Author-X-Name-First: María del Carmen
Author-X-Name-Last: Ramos-Herrera
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: An empirical characterization of the effects of public debt on economic growth
Abstract:
Based on a data set of 115 economies, this article empirically investigates the relation between public debt and economic growth. Using the World Bank’s classification for income groups, we initially find that those countries that present the lowest public debt are characterized by the highest economic growth, while the smallest growth rates are associated with the highest public debt. Nevertheless, this conclusion is tempered when we analyse the countries by income level: low-income countries have a different behaviour with respect to lower-middle, upper-middle and high-income countries. When using the IMF’s country classification, the results do not suggest a clear pattern in the public debt–economic growth nexus across different countries, but indicate a heterogeneous relationship between such key macroeconomic variables.
Journal: Applied Economics
Pages: 3495-3508
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262522
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262522
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Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3495-3508
Template-Type: ReDIF-Article 1.0
Author-Name: Julie L. Hotchkiss
Author-X-Name-First: Julie L.
Author-X-Name-Last: Hotchkiss
Author-Name: M. Melinda Pitts
Author-X-Name-First: M. Melinda
Author-X-Name-Last: Pitts
Author-Name: Mary Beth Walker
Author-X-Name-First: Mary Beth
Author-X-Name-Last: Walker
Title: Impact of first birth career interruption on earnings: evidence from administrative data
Abstract:
This article makes use of unique administrative data to expand the understanding of the role women’s intermittency decisions play in the determination of her wages. We demonstrate that treating intermittency as exogenous significantly overstates its impact. The intermittency penalty also increases in the education level of the woman. The penalty for women with a high school degree with an average amount of intermittency during 6 years after giving birth to her first child is roughly half the penalty for college graduates. We also demonstrate the value of making use of an index to capture multiple dimension of the intermittency experience, and illustrate the importance of firm dynamics in the determination of a woman’s wage.
Journal: Applied Economics
Pages: 3509-3522
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262523
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262523
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Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3509-3522
Template-Type: ReDIF-Article 1.0
Author-Name: Idries M. Al-Jarrah
Author-X-Name-First: Idries M.
Author-X-Name-Last: Al-Jarrah
Author-Name: Khalid S. Al-Abdulqader
Author-X-Name-First: Khalid S.
Author-X-Name-Last: Al-Abdulqader
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: Cost-efficiency and financial and geographical characteristics of banking sectors in the MENA countries
Abstract:
We utilize the translog stochastic frontier model to estimate the cost-efficiency levels for conventional and Islamic, Cooperation Council (GCC) and non-GCC banks in the Middle East and North African (MENA) countries. The estimated cost-efficiency averages around 77% for those MENA banks, but with slight changes in this score for the individual countries. The results also show that the banks in the GCC countries are the most efficient in the region and the efficiency scores for the conventional and Islamic banks are similar. Finally, the recent financial crisis seems to have a slight impact on the observed efficiency scores of those banks.
Journal: Applied Economics
Pages: 3523-3537
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262524
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262524
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Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3523-3537
Template-Type: ReDIF-Article 1.0
Author-Name: Xuchen Lin
Author-X-Name-First: Xuchen
Author-X-Name-Last: Lin
Author-Name: Xiaolong Li
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Li
Author-Name: Zhong Zheng
Author-X-Name-First: Zhong
Author-X-Name-Last: Zheng
Title: Evaluating borrower’s default risk in peer-to-peer lending: evidence from a lending platform in China
Abstract:
Recent years have witnessed the popularity of online peer-to-peer lending, which allows individuals to borrow from and lend to each other on an Internet-based platform. Using data from a large P2P platform in China, this article explores the factors that determine the default risk based on the demographic characteristics of borrowers. Moreover, we propose a credit risk evaluation model, which can quantify the default risk of each P2P loan. Empirical results reveal that gender, age, marital status, educational level, working years, company size, monthly payment, loan amount, debt to income ratio and delinquency history play a significant role in loan defaults. Finally, we analyse the relationship between default risk and these contributory variables, and the possible causes are also discussed in this study.
Journal: Applied Economics
Pages: 3538-3545
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262526
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262526
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Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3538-3545
Template-Type: ReDIF-Article 1.0
Author-Name: Nejat Anbarci
Author-X-Name-First: Nejat
Author-X-Name-Last: Anbarci
Author-Name: K. Peren Arin
Author-X-Name-First: K. Peren
Author-X-Name-Last: Arin
Author-Name: Cagla Okten
Author-X-Name-First: Cagla
Author-X-Name-Last: Okten
Author-Name: Christina Zenker
Author-X-Name-First: Christina
Author-X-Name-Last: Zenker
Title: Is Roger Federer more loss averse than Serena Williams?
Abstract:
Using data from the high-stakes 2013 Dubai professional tennis tournament, we find that, compared with a tied score, (i) male players have a higher serve speed and thus exhibit more effort when behind in score, and their serve speeds get less sensitive to losses or gains when score difference gets too large, and (ii) female players do not change their serve speed when behind, while serving slower when ahead. Thus, male players comply more with Prospect Theory exhibiting more loss aversion and reflection effect. Our results are robust to controlling for player fixed effects and characteristics with player random effects.
Journal: Applied Economics
Pages: 3546-3559
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262527
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262527
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Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3546-3559
Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Gogolin
Author-X-Name-First: Fabian
Author-X-Name-Last: Gogolin
Author-Name: Michael Dowling
Author-X-Name-First: Michael
Author-X-Name-Last: Dowling
Author-Name: Mark Cummins
Author-X-Name-First: Mark
Author-X-Name-Last: Cummins
Title: Individual values and household finances
Abstract:
We create individual cultural values measures for households and show that this is an important determinant of their financial behaviour. To date, personal cultural values have only been indirectly measured through religion and trust. But these are, at best, an approximation of true cultural values. Applying a holistic framework from the World Values Survey (WVS), we create individual measures of cultural values, and show that the self-expression values of this framework are positively associated with households’ financial decisions. Examining the individual cultural values that make up the WVS model, we further show that happiness, trust, and playing an active role in society, are individually important determinants of household financial decision-making. Our study shows that cultural values can be brought from a generalized national level to the individual level in order to improve our understanding of household financial decision-making.
Journal: Applied Economics
Pages: 3560-3578
Issue: 35
Volume: 49
Year: 2017
Month: 7
X-DOI: 10.1080/00036846.2016.1262528
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1262528
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Handle: RePEc:taf:applec:v:49:y:2017:i:35:p:3560-3578
Template-Type: ReDIF-Article 1.0
Author-Name: Yashar Tarverdi
Author-X-Name-First: Yashar
Author-X-Name-Last: Tarverdi
Author-Name: Anu Rammohan
Author-X-Name-First: Anu
Author-X-Name-Last: Rammohan
Title: On the role of governance and health aid on child mortality: a cross-country analysis
Abstract:
Globally, child mortality rates continue to be unacceptably high despite improvement in child health outcomes. The role of macro level indicators, such as governance and health aid on child mortality, remains under-researched. The aim of this article is to analyse the influence of governance and health aid on child mortality using cross-country data. A negative association between governance and the mortality rate of children less than 5 years of age was found using System Generalised Method of Moments Dynamic Panel, the linkage also exists in the results of quantile and semi-parametric regression. However, as in other literature, the role of health aid on child mortality remains ambiguous.
Journal: Applied Economics
Pages: 845-859
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208351
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208351
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Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:845-859
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Antonio Lucena Aiube
Author-X-Name-First: Fernando Antonio Lucena
Author-X-Name-Last: Aiube
Author-Name: Carlos Patricio Samanez
Author-X-Name-First: Carlos Patricio
Author-X-Name-Last: Samanez
Author-Name: Tara Keshar Nanda Baidya
Author-X-Name-First: Tara Keshar Nanda
Author-X-Name-Last: Baidya
Author-Name: Larissa de Oliveira Resende
Author-X-Name-First: Larissa de Oliveira
Author-X-Name-Last: Resende
Title: Evaluating the risk premium in the U.S.A. natural gas market: evidence from low-price regime
Abstract:
In recent years, the U.S.A. natural gas market has seen enormous changes. The expectations of abundant supply of shale gas and the slow U.S.A. economic recovery have pushed gas prices below US$ 4 MMBtu. Although shale gas is a new promising source of unconventional energy, investors face uncertain investment plans. In this study, we investigate the risk premium by comparing behaviour before and after the change point in agents risk perception. Unlike traditional empirical research on risk premium, we use the parametric, two-factor model of Schwartz and Smith (2000) to evaluate the implied risk premium term structure from futures prices traded on the New York Mercantile Exchange (NYMEX). We compare our findings with other empirical results and find that the change point lies at the beginning of the low-price regime. When we compare periods before and after the change point, we observe that the risk premium changed, not only in sign, but also in magnitude.
Journal: Applied Economics
Pages: 860-871
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208353
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208353
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Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:860-871
Template-Type: ReDIF-Article 1.0
Author-Name: Wai-Mun Chia
Author-X-Name-First: Wai-Mun
Author-X-Name-Last: Chia
Author-Name: Mengling Li
Author-X-Name-First: Mengling
Author-X-Name-Last: Li
Author-Name: Huanhuan Zheng
Author-X-Name-First: Huanhuan
Author-X-Name-Last: Zheng
Title: Behavioral heterogeneity in the Australian housing market
Abstract:
We propose a heterogeneous agent model (HAM) of four groups of investors with Markov chain regime-dependent beliefs for the housing market. Within the Markov switching framework, we take into account how heterogeneous investors shift their trading behaviour in response to changes in housing market conditions. The model is estimated and compared with the benchmark rational expectation models using the Australian housing market data from 1982Q1 to 2013Q2. We find evidence of within- and between-group heterogeneity in the Australian housing market. We show that HAM with Markov switching beliefs provides a better in-sample estimation efficiency and outperforms the conventional rational expectation models in terms of out-of-sample prediction.
Journal: Applied Economics
Pages: 872-885
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208355
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208355
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Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:872-885
Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Yueli Tang
Author-X-Name-First: Yueli
Author-X-Name-Last: Tang
Author-Name: Peng Guo
Author-X-Name-First: Peng
Author-X-Name-Last: Guo
Title: Asymmetric spillover effects between the Shanghai and Hong Kong stock markets: evidence from quantile lagged regression
Abstract:
This article surveys the asymmetric spillover effects between the mainland China-based Shanghai Composite Index (SCI) and the Hong Kong based Hang Seng Index (HSI) using a quantile lagged regression model. Compared to previous studies, this article, based on data before and after the 2008 global financial crisis, presents a more detailed analysis, as we investigate the spillovers in terms of returns, volatilities and exchange rates between the renminbi (RMB) and the Hong Kong dollar (HKD) throughout the entire conditional return distribution, including the central quantiles, which are closely related to the normal circumstances, and the extreme quantiles, which correspond to the bear and bull markets. First, we find that the return spillovers from its lagged returns or from the other index not only vary across time but also depend on stock state. Second, while return volatility may boost the stock market in a bull market, it accelerates the decline in a bear market. Third, the depreciation of the RMB relative to the HKD does not significantly affect current returns for the HSI, while it negatively affects current returns for the SCI in a bad state after the crisis. The findings presented in this article will facilitate investors’ understanding of the two stock markets.
Journal: Applied Economics
Pages: 886-902
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208356
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208356
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Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:886-902
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Falk
Author-X-Name-First: Martin
Author-X-Name-Last: Falk
Author-Name: Federico Biagi
Author-X-Name-First: Federico
Author-X-Name-Last: Biagi
Title: Relative demand for highly skilled workers and use of different ICT technologies
Abstract:
This study investigates the relationship between several indicators of ICT usage and digitalization and the relative demand for highly skilled workers. The data are based on two-digit industry-level information on seven European countries for the period 2001–2010. For manufacturing industries, static fixed-effects models show that the share of employees with internet broadband access, the diffusion of mobile internet access and the use of enterprise resource planning (ERP) systems and automatic data exchange combined with electronic invoicing are all significantly and positively related to skill intensity in the industries observed. For service industries, only mobile internet usage intensity is significant. Specifically for manufacturing, a 10-point increase in the percentage of firms using ERP systems is associated with an increase in the share of highly skilled workers by 0.4 percentage points. These estimates indicate that the increase in ERP system usage during the period studied accounted for 30% of the increase in the share of workers with a tertiary degree across manufacturing industries and countries. The results are robust with respect to the estimation method and the potential endogeneity of ICT.
Journal: Applied Economics
Pages: 903-914
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208357
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208357
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Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:903-914
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Mesly
Author-X-Name-First: Olivier
Author-X-Name-Last: Mesly
Author-Name: François-Éric Racicot
Author-X-Name-First: François-Éric
Author-X-Name-Last: Racicot
Title: A stylized model of home buyers’ and bankers’ behaviours during the 2007-2009 US subprime mortgage crisis: a predatory perspective
Abstract:
We examine the behaviour of market agents during the years leading to the 2008 US subprime mortgage crisis using a stylized capital asset pricing model model. In our study, an average investor eager to make money by flipping houses meets a banker who offers him subprime mortgage deals. We refer to recent research that shows the mechanics of the psychological and behavioural components of these two market agents. In particular, much in line with the famous Stanford experiment, it is assumed that investors adopt a predator or a prey position. Our analysis shows that, given a historical tendency towards financial predatory acts on the part of market agents (including buyers), government regulations should be adapted and strengthened to face this dooming reality.
Journal: Applied Economics
Pages: 915-928
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208358
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208358
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Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:915-928
Template-Type: ReDIF-Article 1.0
Author-Name: Zhi-Fu Mi
Author-X-Name-First: Zhi-Fu
Author-X-Name-Last: Mi
Author-Name: Yi-Ming Wei
Author-X-Name-First: Yi-Ming
Author-X-Name-Last: Wei
Author-Name: Bao-Jun Tang
Author-X-Name-First: Bao-Jun
Author-X-Name-Last: Tang
Author-Name: Rong-Gang Cong
Author-X-Name-First: Rong-Gang
Author-X-Name-Last: Cong
Author-Name: Hao Yu
Author-X-Name-First: Hao
Author-X-Name-Last: Yu
Author-Name: Hong Cao
Author-X-Name-First: Hong
Author-X-Name-Last: Cao
Author-Name: Dabo Guan
Author-X-Name-First: Dabo
Author-X-Name-Last: Guan
Title: Risk assessment of oil price from static and dynamic modelling approaches
Abstract:
The price gap between West Texas Intermediate (WTI) and Brent crude oil markets has been completely changed in the past several years. The price of WTI was always a little larger than that of Brent for a long time. However, the price of WTI has been surpassed by that of Brent since 2011. The new market circumstances and volatility of oil price require a comprehensive re-estimation of risk. Therefore, this study aims to explore an integrated approach to assess the price risk in the two crude oil markets through the value at risk (VaR) model. The VaR is estimated by the extreme value theory (EVT) and GARCH model on the basis of generalized error distribution (GED). The results show that EVT is a powerful approach to capture the risk in the oil markets. On the contrary, the traditional variance–covariance (VC) and Monte Carlo (MC) approaches tend to overestimate risk when the confidence level is 95%, but underestimate risk at the confidence level of 99%. The VaR of WTI returns is larger than that of Brent returns at identical confidence levels. Moreover, the GED-GARCH model can estimate the downside dynamic VaR accurately for WTI and Brent oil returns.
Journal: Applied Economics
Pages: 929-939
Issue: 9
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1208359
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1208359
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Handle: RePEc:taf:applec:v:49:y:2017:i:9:p:929-939
Template-Type: ReDIF-Article 1.0
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: Global and regional linkages across market cycles: evidence from partial correlations in a network framework
Abstract:
Using a novel approach, partial correlations within a complex network framework, we examine the degree of globalization and regionalization of stock market linkages and how these linkages vary across different economic or market cycles. Our results show that geography influences network linkages differently across economic cycles. During normal times, regional factors shape market linkages; however, during periods of turbulence, global rather than regional factors drive the linkages. The network traffic also increases during times of turmoil, but contrary to previous results, we do not find a consistent or overwhelming increase in positive linkages between markets. Also, contrary to expectations, financial centres such as the US, China, Japan, and the UK command a greater regional rather than global influence. Our findings have implications for asset pricing and policy decision making.
Journal: Applied Economics
Pages: 3551-3582
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578851
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578851
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Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3551-3582
Template-Type: ReDIF-Article 1.0
Author-Name: Oladipo Olalekan David
Author-X-Name-First: Oladipo Olalekan
Author-X-Name-Last: David
Title: Powering economic growth and development in Africa: telecommunication operations
Abstract:
This study investigates the effect of telecommunication operations on economic growth and development in selected African countries. The analysis considers a panel of 46 African countries from 2000 to 2015. To measure economic growth, real gross domestic product serves as the proxy, while economic development is measured by the Human Development Index, and telecommunication operations by a composite index of telecommunication computed from mobile line, fixed/CDM line and Internet access penetration via principal component analysis. The physical capital stock is measured by gross fixed capital formation, level of employment by the employment to population ratio, human capital development by enrolment in secondary education for both sexes and technology transfer by net inflows of foreign direct investment in Africa. The empirical results suggest that telecommunication operations promote economic growth and development in Africa. These results imply that for every positive expansion in telecommunication operations and physical capital stock, aggregate output and standard of living will adjust positively in Africa. Thus, an appropriate policy to improve overall investment in Africa and most especially in the telecommunication sector since the spillover effect cut across other sectors and the general economic performance.
Journal: Applied Economics
Pages: 3583-3607
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578852
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578852
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Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3583-3607
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Bellino
Author-X-Name-First: Antonella
Author-X-Name-Last: Bellino
Author-Name: Giuseppe Celi
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Celi
Title: Disentangling the migration-trade nexus: the pro-trade effects of immigrants and emigrants in the presence of vertical and horizontal product differentiation
Abstract:
This paper presents an exploration of the migration-trade nexus taking the case of Italy by crossing the two dimensions of migration (immigration and emigration) and the two dimensions of intra-industry trade (vertical and horizontal). This empirical strategy proves useful in refining interpretation of econometric results. In general, we find that both immigration and emigration are positively and significantly related to intra-industry trade. However, the magnitude and the statistical significance of the impact of migration on trade vary, depending on the type of trade flows considered (vertical or horizontal), the direction of migration (immigration or emigration) and the partner countries considered (OECD or non-OECD). In particular, we find that immigrants from non-OECD countries have a positive and significant impact on both ‘variety trade’ and ‘quality trade’, while immigrants from OECD countries significantly affect ‘variety trade’ only. Emigrants to non-OECD countries have positive effect only on ‘variety trade’. These findings are largely consistent with predictions deriving from theoretical models of intra-industry trade and from the literature on migration-trade nexus.
Journal: Applied Economics
Pages: 3665-3688
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581912
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581912
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Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3665-3688
Template-Type: ReDIF-Article 1.0
Author-Name: Ping Wang
Author-X-Name-First: Ping
Author-X-Name-Last: Wang
Author-Name: Henry W. Kinnucan
Author-X-Name-First: Henry W.
Author-X-Name-Last: Kinnucan
Author-Name: Patricia A. Duffy
Author-X-Name-First: Patricia A.
Author-X-Name-Last: Duffy
Title: The effects of rising labour costs on global supply chains: the case of China’s cotton yarn industry
Abstract:
Rapid economic growth in China and India has resulted in rapidly rising labour costs in those countries. In this study a Muth-type model is used to assess the potential effects of this development on global supply chains using China’s cotton yarn industry as a case study. The model considers i) product differentiation at the yarn level; ii) imperfect competition in the markets for cotton yarn and raw cotton fibre, iii) input substitution between raw cotton fibre, labour, and capital; and iv) offsetting increases in the demand for cotton yarn caused by rising consumer income. Results suggest the effects of rising labour costs on the supply chain are modest, and easily swamped or obscured by the effects of rising income. Increases in industry market power (both oligopoly and oligopsony) have the same effect on the supply chain as increases in labour costs, raising prices to consumers of cotton yarn, and lowering prices to input suppliers, including foreign suppliers of raw cotton fibre. The combined effects of increases in labour costs and income have increased the factor shares for labour and to a lesser extent capital at the expense of raw cotton fibre.
Journal: Applied Economics
Pages: 3608-3623
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584372
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584372
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Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3608-3623
Template-Type: ReDIF-Article 1.0
Author-Name: Goodness C. Aye
Author-X-Name-First: Goodness C.
Author-X-Name-Last: Aye
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Chi Keung Marco Lau
Author-X-Name-First: Chi Keung Marco
Author-X-Name-Last: Lau
Author-Name: Xin Sheng
Author-X-Name-First: Xin
Author-X-Name-Last: Sheng
Title: Is there a role for uncertainty in forecasting output growth in OECD countries? Evidence from a time-varying parameter-panel vector autoregressive model
Abstract:
This paper uses a time-varying parameter-panel vector autoregressive (TVP-PVAR) model to analyze the role played by domestic and US news-based measures of uncertainty in forecasting the growth of industrial production of 12 Organisation for Economic Co-operation and Development (OECD) countries. Based on a monthly out-of-sample period of 2009:06 to 2017:05, given an in-sample of 2003:03 to 2009:05, there are only 46% of cases where domestic uncertainty can improve the forecast of output growth relative to a baseline monetary TVP-PVAR model, which includes inflation, interest rate and nominal exchange rate growth, besides output growth. Moreover, including US uncertainty does not necessarily improve the forecasting performance of output growth from the TVP-PVAR model which includes only the domestic uncertainty along with the baseline variables. So, in general, while uncertainty is important in predicting the future path of output growth in the 12 advanced economies considered, a forecaster can do better in majority of the instances by just considering the information from standard macroeconomic variables.
Journal: Applied Economics
Pages: 3624-3631
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584373
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584373
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Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3624-3631
Template-Type: ReDIF-Article 1.0
Author-Name: Juliana Gonçalves Taveira
Author-X-Name-First: Juliana Gonçalves
Author-X-Name-Last: Taveira
Author-Name: Eduardo Gonçalves
Author-X-Name-First: Eduardo
Author-X-Name-Last: Gonçalves
Author-Name: Ricardo Da Silva Freguglia
Author-X-Name-First: Ricardo Da Silva
Author-X-Name-Last: Freguglia
Title: The missing link between innovation and performance in Brazilian firms: a panel data approach
Abstract:
This study aims to verify if there is a positive relationship between innovation and productivity and/or profit in Brazil using a recursive model in line with the Crépon, Duguet and Mairesse (CDM) model. Using a rich combination of three databases, this paper considers a sample of more than 10,000 Brazilian industrial firms and the period 2001–2008. Besides using R&D expenditure as a measure of innovation input, this study also tests the technical-scientific personnel stock as a more appropriate measure of innovative effort in emerging countries. This variable considers the tacit knowledge intrinsic to the worker and corrects a possible measurement error bias in the R&D expenditure variable. The empirical strategy uses a reduced form of the CDM model in a panel data structure to provide consistent estimates as it controls for selectivity, simultaneity and endogeneity due to unobserved firm effects. There are still few studies that apply the CDM model for panel data, especially regarding developing countries. The main results suggest that technical-scientific workers positively affect the firms’ probability to innovate while R&D expenditure has no effect. The results also highlight the absence of the effect of innovation on productivity and profit, suggesting a missing link between innovative efforts and Brazilian firms’ performance.
Journal: Applied Economics
Pages: 3632-3649
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584374
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584374
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Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3632-3649
Template-Type: ReDIF-Article 1.0
Author-Name: Sara Ayllón
Author-X-Name-First: Sara
Author-X-Name-Last: Ayllón
Author-Name: Dragana Radicic
Author-X-Name-First: Dragana
Author-X-Name-Last: Radicic
Title: Product innovation, process innovation and export propensity: persistence, complementarities and feedback effects in Spanish firms
Abstract:
Drawing on a longitudinal data of Spanish manufacturing firms, this study explores the persistence of technological innovation and exports, their potential complementary relations and feedback effects. Empirical results suggest the presence of both true and spurious state dependence in all three activities. True state dependence in technical innovation and exports implies intertemporal spillovers relevant to the evaluation of innovation and export policy measures. However, given that results also suggest spurious state dependence, firm-specific characteristics should be taken into account in promoting technological innovations and exports. In addition, we find a strong complementarity between product and process innovation both through a contemporaneous effect and via unobserved firm characteristics. However, concerning complementarity between innovation and exports, results suggests complementarity only through contemporaneous effects. Finally, we find no support for the causal link from past product and process innovations to current export activities.
Journal: Applied Economics
Pages: 3650-3664
Issue: 33
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1584376
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1584376
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Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3650-3664
Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Fiorino
Author-X-Name-First: Nadia
Author-X-Name-Last: Fiorino
Author-Name: Emma Galli
Author-X-Name-First: Emma
Author-X-Name-Last: Galli
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Title: Dimensions of civic activism and their effectiveness in exposing corruption: evidence from Italy
Abstract:
This article studies the influence of civic activism in exposing corruption across Italian regions. Using different dimensions of civic activism (including local and national newspapers, the internet, blood donors, and voter turnout), we make the distinction between active (media, internet, voters) and passive (blood donors) activism. Results show interesting different impacts of civic activism on corruption. In particular, voter turnout, blood donors, and national newspaper diffusion consistently increased exposure of corruption, while the internet and local newspapers showed opposite effects. Thus, local newspapers and the internet point to the possibility of media capture (influence) with regard to corruption exposure. The main findings hold following the substantial reforms in the nineties (called Mani Pulite).
Journal: Applied Economics
Pages: 663-675
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1506086
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1506086
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Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:663-675
Template-Type: ReDIF-Article 1.0
Author-Name: Junyi Wan
Author-X-Name-First: Junyi
Author-X-Name-Last: Wan
Author-Name: Lijun Zeng
Author-X-Name-First: Lijun
Author-X-Name-Last: Zeng
Author-Name: Jiazhuo Ao
Author-X-Name-First: Jiazhuo
Author-X-Name-Last: Ao
Title: Specific investment, relational governance and cooperation risk: from the perspective of farmers in China’s “Company+Farmers” alliance
Abstract:
The ‘Company+ Farmers’ alliance is the main organization for China’s agricultural industrialization management. Based on the survey data of farmers cooperating with companies in Guangdong and Jiangxi Provinces, this article explores the relationship among farmers’ specific investment, the relational governance of the alliance and farmers’ cooperation risk. The results show that the relational governance of the alliance can be divided into cognitive relational governance and coordinated relational governance. Among these types, cognitive relational governance can significantly promote farmers’ specific investment. However, with the increase in farmers’ specific investment, farmers’ cooperation risk is significantly improved, and the coordinated relational governance can significantly enhance the role of farmers’ material-specific investment in promoting cooperation risk. Therefore, agricultural enterprises can use cognitive relational governance to encourage farmers’ specific investment, and the specific investment of farmers must rely on a contract governance mechanism.
Journal: Applied Economics
Pages: 676-686
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1508868
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1508868
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Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:676-686
Template-Type: ReDIF-Article 1.0
Author-Name: Honghua Chen
Author-X-Name-First: Honghua
Author-X-Name-Last: Chen
Author-Name: Zhihong Tian
Author-X-Name-First: Zhihong
Author-X-Name-Last: Tian
Author-Name: Fen Xu
Author-X-Name-First: Fen
Author-X-Name-Last: Xu
Title: What are cost changes for produce implementing traceability systems in China? Evidence from enterprise A
Abstract:
Based on the survey data and information, this paper conducts analysis on the extra cost of traceability systems for agro-product enterprises in China. Calculation on concrete pricing of traceable products is conducted with Enterprise A as an example by using break-even pricing. The price that consumers are willing to pay for 10 traceable products in Enterprise A was measured by collecting 576 valid questionnaires in three cities in China. The benefit–cost ratio, contribution margin ration and profit growth rate are figured before and after implementing the traceability system to illustrate if Enterprise A is profitable after implementing the traceability system. The results show that extra cost incurred by the traceability system of Enterprise A is not high in China; it is not the main reason for the high price of traceable products. Enterprise A increases its operating efficiency and profit growth rate after implementing the traceability system. The pricing of traceable product should consider target consumers’ willingness to pay rather than setting prices blindingly. Government support and education to consumers are important to promote the construction of traceability system at the early stage of establishment of traceability system in China.
Journal: Applied Economics
Pages: 687-697
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1510470
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1510470
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Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:687-697
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Triguero Ruiz
Author-X-Name-First: Francisco
Author-X-Name-Last: Triguero Ruiz
Author-Name: Antonio Avila-Cano
Author-X-Name-First: Antonio
Author-X-Name-Last: Avila-Cano
Title: The distance to competitive balance: a cardinal measure
Abstract:
Competitive balance is a key variable in the analysis of sports competitions. There are several indexes that measure competitive balance but, either they are not a mathematical metric or they do not have the unit interval as a range. Therefore, these indexes do not indicate the magnitude of the differences, and the measurements cannot be interpreted as percentages. We characterize the space of all admissible configurations of the results of a competition. Then, we construct a new index, based on the concept of distance, whose range is the unit interval, and define it as a function in a metric space. So, it solves issues linked to the limited cardinality of most existing indexes, and we can answer this question: What is the meaning of the differences between the levels of competitive balance? We applied this index to the major European soccer leagues over the last twenty seasons.
Journal: Applied Economics
Pages: 698-710
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1512743
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1512743
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Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:698-710
Template-Type: ReDIF-Article 1.0
Author-Name: Wenchao Xu
Author-X-Name-First: Wenchao
Author-X-Name-Last: Xu
Author-Name: Man Li
Author-X-Name-First: Man
Author-X-Name-Last: Li
Author-Name: Andrew Reid Bell
Author-X-Name-First: Andrew Reid
Author-X-Name-Last: Bell
Title: Water Security and Irrigation Investment: Evidence from a Field Experiment in Rural Pakistan
Abstract:
This study examines the relationship between water security features and irrigation investment using data from a field survey with a choice experiment conducted in rural Pakistan. Our results generally support Besley’s framework on the link between property right and investment incentive with an application to irrigation, although not all aspects of water security features can significantly affect farmers’ investment in irrigation. Investment increases significantly with groundwater share, but there is insufficient evidence to support that farmers’ investment is significantly and positively affected by surface water reliability. Farmers who own land or who are located further down the watercourse tend to invest more than their peers do. Existing conditions on surface water reliability significantly affect this relationship. Overall, groundwater use dominates the decision-making of investment and the role of surface water source in securing irrigation water is relatively weak from a farmer’s perspective.
Journal: Applied Economics
Pages: 711-721
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1513634
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1513634
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Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:711-721
Template-Type: ReDIF-Article 1.0
Author-Name: Marcus Asplund
Author-X-Name-First: Marcus
Author-X-Name-Last: Asplund
Author-Name: David Jinkins
Author-X-Name-First: David
Author-X-Name-Last: Jinkins
Author-Name: Chandler Lutz
Author-X-Name-First: Chandler
Author-X-Name-Last: Lutz
Author-Name: Gyorgy Paizs
Author-X-Name-First: Gyorgy
Author-X-Name-Last: Paizs
Title: Winners and losers from an announced durable tax hike: Tesla in Denmark
Abstract:
We study the consumer response and tax revenue implications of the early announcement of a durable good tax. In 2015, the Danish government announced a tax hike on electric vehicles several months before its implementation. There was a dramatic surge in sales of Tesla Model S vehicles just before the tax came into effect, and a dramatic ebb in the months following. We find that the government lost 169 million DKK (23 million Euro) in tax revenue on luxury vehicles by announcing the tax change before its implementation. We further find that speculation played at most a limited role in the Tesla sales surge. In total, final consumers of Teslas gained from the roll-out of the law change by avoiding the new tax.
Journal: Applied Economics
Pages: 722-730
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1520963
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1520963
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Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:722-730
Template-Type: ReDIF-Article 1.0
Author-Name: Yilmaz Yildiz
Author-X-Name-First: Yilmaz
Author-X-Name-Last: Yildiz
Author-Name: Mehmet Baha Karan
Author-X-Name-First: Mehmet Baha
Author-X-Name-Last: Karan
Title: Momentum or market? Determinants of large stock price changes in an emerging market
Abstract:
The aim of this study is to investigate the determinants of large price changes in Turkey. We also provide additional evidence on determinants of large price changes in different macroeconomic environments, specifically on the pre-crisis and post-crisis periods. Using recurrent event analysis with stratified observations and frailty effects, our findings suggest that momentum has a significant impact on large price changes during both pre-crisis and post-crisis periods. However, the impact of market is more significant on the estimation of large price declines in the pre-crisis period and of large price increases in the post-crisis period. Additional findings suggest that liquidity and market-to-book ratio have positive, firm size has a negative impact on likelihood of large price changes regardless of the direction of the stock price change and macroeconomic environment. Findings of this study provide new insights into the understanding of large price changes in an emerging market.
Journal: Applied Economics
Pages: 731-742
Issue: 7
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524128
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524128
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Handle: RePEc:taf:applec:v:51:y:2019:i:7:p:731-742
Template-Type: ReDIF-Article 1.0
Author-Name: Oliviero A. Carboni
Author-X-Name-First: Oliviero A.
Author-X-Name-Last: Carboni
Author-Name: Paolo Russu
Author-X-Name-First: Paolo
Author-X-Name-Last: Russu
Title: Measuring and forecasting regional environmental and economic efficiency in Italy
Abstract:
Environmental and economic efficiency has being receiving growing attention among researchers. In general terms, this concept is related to the capability of the economic systems to employ natural resources efficiently, so as to increase economic and human wealth. This clearly implies that both the economic and ecological aspects of decisions ought to be considered. Bearing this in mind, this article considers economic and ecological performance together, by applying data envelopment analysis and the Malmquist productivity index to investigate the efficiency of the 20 Italian regions from 2004 to 2011. The results reveal that the northern regions have been more efficient than the southern ones, highlighting the strong geographical differences between the two. Furthermore, this article uses the grey system theory to forecast regional, economic and environmental efficiency. The results of the forecasting analysis show that the north–south duality remains strong and will possibly increase since the regions in the south get worse in term of environmental and economic efficiency.
Journal: Applied Economics
Pages: 335-353
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313954
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313954
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Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:335-353
Template-Type: ReDIF-Article 1.0
Author-Name: Yimin Zhou
Author-X-Name-First: Yimin
Author-X-Name-Last: Zhou
Author-Name: Liyan Han
Author-X-Name-First: Liyan
Author-X-Name-Last: Han
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Is the relationship between gold and the U.S. dollar always negative? The role of macroeconomic uncertainty
Abstract:
The main work of this article is to access the role of macroeconomic uncertainty in effecting the correlation between gold and the dollar. The empirical analysis is divided into two parts. Firstly, we examine the impact of macroeconomic uncertainty on short and long correlation between gold and the dollar. Secondly, we analyse the explanatory power of economic uncertainty for the abnormal market relation between gold and the dollar with a threshold model. In particular, we investigate impacts of economic uncertainty sourced from different economies. The empirical results indicate that economic uncertainty generates direct impacts on the correlation between gold and the dollar. Moreover, our results emphasize that uncertainty sourced from different economies have different impacts on the dynamics between gold and the dollar. This article also presents the relative contribution of gold and the dollar shocks to the likelihood of being in the high-uncertainty regime. These results have implications for risk management, international asset allocation and hedging strategies.
Journal: Applied Economics
Pages: 354-370
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1313956
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313956
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Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:354-370
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Cavalcanti Ferreira
Author-X-Name-First: Pedro Cavalcanti
Author-X-Name-Last: Ferreira
Author-Name: Guido Penido Guimarães
Author-X-Name-First: Guido Penido
Author-X-Name-Last: Guimarães
Title: The impact of heterogeneity of discount factors and asset returns on inequality
Abstract:
We investigate the effect of differential access to financial markets, discount factor and wealth endowment on poverty and inequality. We construct a model of educational and savings choice with heterogeneous agents. Motivated by empirical evidence, in this economy the return on savings is a non-decreasing function of the amount saved. As expected, more patient households tend to become wealthier and more educated. The heterogeneity on portfolio returns is shown to be key to our main result: the model closely fits the data on income and wealth inequalities, being able to explain the existing Brazil’s inequality patterns. The model was also calibrated to the US, with similar fit. We then evaluate two types of public policies based on cash transfer schemes (CTSs), that aim to reduce poverty and inequality. We find that the CTS version in which receiving the benefit is conditional on educating the household’s youngster outperforms its unconditional version in almost all dimensions analysed.
Journal: Applied Economics
Pages: 371-388
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1316825
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316825
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Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:371-388
Template-Type: ReDIF-Article 1.0
Author-Name: Baomin Dong
Author-X-Name-First: Baomin
Author-X-Name-Last: Dong
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Author-Name: Xili Ma
Author-X-Name-First: Xili
Author-X-Name-Last: Ma
Author-Name: Peng Li
Author-X-Name-First: Peng
Author-X-Name-Last: Li
Title: On the impacts of carbon tax and technological progress on China
Abstract:
Using a dynamic national computable general equilibrium model, we investigate the impact of carbon tax and energy efficiency improvement on the economy and environment of China. The Chinese social account matrix is presented based upon the latest input–output table (2012 IO table) and other data. The business as usual (BAU) scenario is designed according to several forecasts about China by 2030, followed by six policy scenarios, including different levels of carbon tax and technological progress as well as their combinations. The results show that carbon tax will frustrate the overall economic growth slightly. The CO2 emission will be 13.81% lower in 2030 compared to BAU case if the carbon tax scheme is carried out at a rate of 200 RMB/ton of CO2. Technological progress will stimulate the economic growth, enrich the household and government income, increase total investment and make most sectors prosperous with the exception of energy industries.
Journal: Applied Economics
Pages: 389-406
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1316826
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316826
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Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:389-406
Template-Type: ReDIF-Article 1.0
Author-Name: Xu Zhang
Author-X-Name-First: Xu
Author-X-Name-Last: Zhang
Author-Name: Xiaoxing Liu
Author-X-Name-First: Xiaoxing
Author-X-Name-Last: Liu
Author-Name: Jianqin Hang
Author-X-Name-First: Jianqin
Author-X-Name-Last: Hang
Author-Name: Dengbao Yao
Author-X-Name-First: Dengbao
Author-X-Name-Last: Yao
Title: The dynamic causality between commodity prices, inflation and output in China: a bootstrap rolling window approach
Abstract:
In this article, we empirically study the time-varying bilateral causality between commodity prices, inflation and output in China. We first perform a series of parameter stability tests and find strong evidence of instability in the parameters estimated for Granger causality tests. We then use the bootstrap rolling window approach to test the causality and find that the causality from commodity prices to both inflation and output is time-varying in the entire sample period and asymmetric in different phases of the business cycle. We also find evidence of the causality from both inflation and output to commodity prices in certain sub-periods. Further discussion on the cost-price mechanism through which the economy fluctuates cyclically suggests that the dynamic causality between commodity prices and inflation contributes to understanding the nature of economic fluctuations and to forecasting economic crises. Overall, our results provide a new perspective to disentangle economic fluctuations.
Journal: Applied Economics
Pages: 407-425
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1321835
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1321835
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Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:407-425
Template-Type: ReDIF-Article 1.0
Author-Name: Shan Li
Author-X-Name-First: Shan
Author-X-Name-Last: Li
Title: Investment and interruption: effects of the US experience on the earnings of return migrants in Mexico
Abstract:
Migration is widely viewed as an investment in human capital. However, due to the imperfect transferability of skills and knowledge across countries, migration trips are also career interruptions, especially for return migrants who may meanwhile experience depreciation of home country-specific skills. This article demonstrates that migration experience increases return migrants’ earnings in the home country on the condition that the migration stay is sufficiently long and mostly uninterrupted. Employing the revised human capital earnings function, the empirical study shows that only a barely interrupted US experience longer than five years, regardless of the legal status of the migration trips, predicts higher earnings of male return migrants in Mexico than comparable non-migrants. Robust findings emerge controlling for unobserved individual \]acteristics or using instrumental variables to deal with the self-selection and endogeneity. Short migration stays in the US and frequent traveling provide return migrants no wage premium in Mexico.
Journal: Applied Economics
Pages: 426-440
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1324616
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324616
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Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:426-440
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Zahra (Mila) Elmi
Author-X-Name-First: Zahra (Mila)
Author-X-Name-Last: Elmi
Author-Name: Omid Ranjbar
Author-X-Name-First: Omid
Author-X-Name-Last: Ranjbar
Title: Re-testing Prebisch–Singer hypothesis: new evidence using Fourier quantile unit root test
Abstract:
The Prebisch–Singer hypothesis in economics asserts that over time the relative price of primary goods relative to manufactured goods should experience a downward trend. To test the hypothesis, we must first establish the unit root properties of the relative price term and then regress the stationary series on a trend term. We use the quantile unit root test which allows for both smooth unknown numbers and the form of breaks in the trend function through a Fourier function to show that the relative price of 23 out of 24 primary goods is stationary. However, the Prebisch–Singer hypothesis is supported only in half of the primary commodities.
Journal: Applied Economics
Pages: 441-454
Issue: 4
Volume: 50
Year: 2018
Month: 1
X-DOI: 10.1080/00036846.2017.1332751
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332751
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Handle: RePEc:taf:applec:v:50:y:2018:i:4:p:441-454
Template-Type: ReDIF-Article 1.0
Author-Name: Panos Fousekis
Author-X-Name-First: Panos
Author-X-Name-Last: Fousekis
Author-Name: Emmanouil Trachanas
Author-X-Name-First: Emmanouil
Author-X-Name-Last: Trachanas
Title: Price transmission in the international skim milk powder markets
Abstract:
This article investigates the strength and the pattern of spatial price linkages in skimmed milk powder markets using monthly wholesale price data from three major producers and exporters (the U.S.A., the E.U., and Oceania) and the nonlinear autoregressive distributed lag model. The results suggest that prices in the three regions considered are linked with stable long-run relationships. The law of one price, however, does not hold. The dominant pattern of transmission in the long run is asymmetric involving positive price stocks to be transmitted with higher intensity compared to negative prices shocks; asymmetries in price transmission exist in the short run as well.
Journal: Applied Economics
Pages: 5233-5245
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173183
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173183
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Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5233-5245
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Title: Population and lifestyle trend changes in China: implications for environmental quality
Abstract:
Demographic changes have considerable impacts on a country’s long-term growth trajectory through the savings, consumption and labour market channels. Population changes, including ageing, migration and urbanization, as well as lifestyle shifts may affect growth for fast-growing countries like China. Rural population migrating to cities consumes more energy services and produces larger emissions since urban lifestyles are generally more energy- and carbon-intensive. Household structures also keep changing across the majority of Chinese cities. Migration and urbanization together drive China’s energy consumption, CO2 emissions upwards and environmental quality downwards if the current trend continues over time. It is, thus, necessary for China to draw useful lessons from experiences in other countries by reconciling population development and environmental changes. This study provides insights into the challenge of environmental sustainability, resulting jointly from population and lifestyle changes in China over the period 1978–2012. The empirical analysis generates empirical findings documenting that population changes and consumption behavioural changes contributed significantly to increased carbon emissions over the last three decades. The modelling results are highly relevant for policymakers who seek to adopt new policies to mitigate lifestyle change-driven environmental challenges that China has to cope with in the foreseeable future.
Journal: Applied Economics
Pages: 5246-5256
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1173184
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1173184
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Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5246-5256
Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Vargas
Author-X-Name-First: Miguel
Author-X-Name-Last: Vargas
Title: Tacit collusion in housing markets: the case of Santiago, Chile
Abstract:
In this article, using a detailed micro-database from Santiago, Chile, the potential existence of tacit collusion in housing markets is investigated. In order to perform the test, Santiago’s housing market is split into four different submarkets using hedonic price analysis and household’s socioeconomics characteristics. Then, using a GMM panel data model, regressions are run for each submarket, correlating industry’s markups with the aggregate level of activity. The main finding is that low and middle income submarkets present higher average markups and a pro-cyclical behaviour. This finding is consistent with a market where participants do not face capacity constraints and behave strategically to sustain tacit collusion during increasing demand periods.
Journal: Applied Economics
Pages: 5257-5275
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176111
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176111
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Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5257-5275
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Michael L. Polemis
Author-X-Name-First: Michael L.
Author-X-Name-Last: Polemis
Title: Competition and efficiency in the MENA banking region: a non-structural DEA approach
Abstract:
The goal of this article is to empirically assess the relationship between competition and efficiency in the banking sector of Middle East and North African (MENA) countries spanning the period 1997–2011. To measure the level of competition, the article estimates the non-structural indicator known as the H-statistic, while the level of bank efficiency is estimated through the nonparametric methodology of the Data Envelopment Analysis (DEA) and the Bootstrap Data Envelopment Analysis (BDEA), respectively. The empirical results are robust under six econometric methodologies, providing sufficient evidence for the presence of a one-way (negative) Granger causality, running from efficiency to competition. The empirical findings lead to the rejection of the ‘Efficient Structure Hypothesis’, implying that increases in competition do not precede increases in cost efficiency.
Journal: Applied Economics
Pages: 5276-5291
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176112
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176112
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Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5276-5291
Template-Type: ReDIF-Article 1.0
Author-Name: Masatomo Akita
Author-X-Name-First: Masatomo
Author-X-Name-Last: Akita
Author-Name: Yusuke Osaki
Author-X-Name-First: Yusuke
Author-X-Name-Last: Osaki
Title: Optimal penalty and accounting policy
Abstract:
This study considers risky investment projects under adverse selection and examines optimal penalties for erroneous auditing reports to maximize social welfare. These penalties give firms an incentive to choose accounting policies that maximize social welfare. We characterize the optimal penalties such that efficient firms choose an aggressive accounting policy and inefficient firms choose a conservative accounting policy.
Journal: Applied Economics
Pages: 5292-5299
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176113
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176113
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Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5292-5299
Template-Type: ReDIF-Article 1.0
Author-Name: Luciano Rodrigues
Author-X-Name-First: Luciano
Author-X-Name-Last: Rodrigues
Author-Name: Mirian Rumenos Piedade Bacchi
Author-X-Name-First: Mirian Rumenos Piedade
Author-X-Name-Last: Bacchi
Title: Light fuel demand and public policies in Brazil, 2003–2013
Abstract:
The main objective of this article is to evaluate determinants of demand for light fuels in Brazil between 2003 and 2013. Through a vector autoregression analysis, an effort was made to identify and quantify the impact of different economic variables and public policy measures adopted during this period on the surprising increase in energy consumption by Brazil’s light-vehicle fleet. The results suggest that demand for energy by the light-vehicle fleet was influenced by an increase in income, by a decrease in fuel prices associated with a policy designed to prevent increases in the price of gasoline from pushing the inflation rate up, by a higher availability of credit for buying vehicles, and by a drop in the real price of those goods, with emphasis on countercyclical measures to waive the tax on industrialized products levied on new vehicles during economic downturns in the automotive industry.
Journal: Applied Economics
Pages: 5300-5313
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176115
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176115
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Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5300-5313
Template-Type: ReDIF-Article 1.0
Author-Name: Katja Görlitz
Author-X-Name-First: Katja
Author-X-Name-Last: Görlitz
Author-Name: Christina Gravert
Author-X-Name-First: Christina
Author-X-Name-Last: Gravert
Title: The effects of the high school curriculum on school dropout
Abstract:
High school dropouts and their lower employment prospects are a major concern for developed countries. This article answers the question whether the high school curriculum has the potential to affect students’ dropout decision. Focusing on the curriculum is also motivated by the manifold curriculum reforms or reform initiatives worldwide. Using a quasi-experimental evaluation design, we identify the effects of a curriculum reform on students’ probability to drop out of high school in the short run, i.e. for the first three cohorts graduating under the new curriculum requirements. The reform increased the curriculum requirements in high school, for instance, by reducing the freedom of choice in course selection. The results show that high school dropout rates increased for males and females alike.
Journal: Applied Economics
Pages: 5314-5328
Issue: 54
Volume: 48
Year: 2016
Month: 11
X-DOI: 10.1080/00036846.2016.1176116
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176116
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Handle: RePEc:taf:applec:v:48:y:2016:i:54:p:5314-5328
Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Cheng Hung
Author-X-Name-First: Jui-Cheng
Author-X-Name-Last: Hung
Author-Name: Jung-Bin Su
Author-X-Name-First: Jung-Bin
Author-X-Name-Last: Su
Author-Name: Matthew C. Chang
Author-X-Name-First: Matthew C.
Author-X-Name-Last: Chang
Author-Name: Yi-Hsien Wang
Author-X-Name-First: Yi-Hsien
Author-X-Name-Last: Wang
Title: The impact of liquidity on portfolio value-at-risk forecasts
Abstract:
Historical crisis events have highlighted the insufficiency of Value-at-Risk (VaR) as a measure of market risk because such metric does not take liquidity into account. Unlike previous studies analyzing with only a single asset, we examine the impact of liquidity on computing VaR forecasts from a portfolio level. To this end, we use multivariate GARCH-t and GJR-GARCH-t models, as compared with univariate models, to seize the liquidity property embedded in individual stock returns and evaluate their accuracy and efficiency in computing VaR forecasts for portfolios with different liquidity levels.The empirical results indicate that computing portfolio VaR forecasts with multivariate models outperform the univariate models for full and subsample periods in terms of accuracy and efficiency evaluations, in particular for less-liquid portfolios. These results suggest the importance of liquidity in computing portfolio VaR forecasts. Ignorance of the impact of liquidity in computing portfolio VaR forecasts might result in inadequate coverage and insufficient market risk capital requirements.
Journal: Applied Economics
Pages: 242-259
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644442
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644442
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Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:242-259
Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Neves Sequeira
Author-X-Name-First: Tiago Neves
Author-X-Name-Last: Sequeira
Author-Name: Pedro Cunha Neves
Author-X-Name-First: Pedro Cunha
Author-X-Name-Last: Neves
Title: Stepping on toes in the production of knowledge: a meta-regression analysis
Abstract:
Decreasing returns to scale in physical resources in the knowledge production function have been widely considered in the economic growth literature. However, given the heterogeneity of empirical results, it is difficult to assess its magnitude. We provide a meta-analysis of the value of the decreasing returns to physical resources in the knowledge production function (stepping-on-toes effect). This has important policy implications regarding the subsidization of R&D activities and policy measures to enable the diffusion of knowledge. We conclude that there is some evidence of publication bias. Moreover, the average effect size is quite small, around 0.2, which implies a high stepping-on-toes effect. This value tends to be higher when variables related to international linkages are present, resources allocated to R&D are measured by labour, the knowledge pool is proxied by population, and instrumental variable estimation techniques are employed. On the contrary, the average returns to scale estimate decreases when resources allocated to R&D are measured by population and when only rich countries are included in the sample.
Journal: Applied Economics
Pages: 260-274
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644447
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644447
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Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:260-274
Template-Type: ReDIF-Article 1.0
Author-Name: Ameet Kumar Banerjee
Author-X-Name-First: Ameet Kumar
Author-X-Name-Last: Banerjee
Author-Name: H. K. Pradhan
Author-X-Name-First: H. K.
Author-X-Name-Last: Pradhan
Author-Name: Trilochan Tripathy
Author-X-Name-First: Trilochan
Author-X-Name-Last: Tripathy
Author-Name: A. Kanagaraj
Author-X-Name-First: A.
Author-X-Name-Last: Kanagaraj
Title: Macroeconomic news surprises, volume and volatility relationship in index futures market
Abstract:
This paper examines the role of macroeconomic news surprises on returns volatility of Indian Index futures market. Empirical literature posits that news arrivals have an influential impact on asset returns and returns volatility. Consistent with this proposition, we have undertaken a comprehensive examination to understand the relationship between macroeconomic news releases, trading volume, and returns volatility in an emerging financial market like India. Using high-frequency data sampled at 1-minute interval along with a broader class of macroeconomic news, we found that macroeconomic news surprises significantly affect both returns volatility and trading volume and that the response of Index futures contract to macroeconomic news surprise is rather swift and significant. Further, there is evidence that several macroeconomic news surprises seemingly exhibit asymmetric impact on the Index futures contract.
Journal: Applied Economics
Pages: 275-287
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645277
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645277
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Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:275-287
Template-Type: ReDIF-Article 1.0
Author-Name: Ngoc Nguyen
Author-X-Name-First: Ngoc
Author-X-Name-Last: Nguyen
Author-Name: Charles Harvie
Author-X-Name-First: Charles
Author-X-Name-Last: Harvie
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: ASEAN income gap and the optimal exchange Rate Regime
Abstract:
This article investigates the optimal exchange rate regime in a group of ASEAN countries, which minimizes the adverse effects of foreign demand shocks on real output, the real exchange rate, price level and between-country income gap. Using a panel structural vector autoregressive model for small open economies, we show that the extent by which foreign demand shocks influences the between-country income gap depends on the exchange rate regime and the transmission channels through output, the price level and the real exchange rate. Our results show that a fixed exchange rate is better in insulating output and real exchange rates against adverse foreign demand shocks. Nevertheless, a flexible exchange rate regime achieves lower inflation and narrows the income gap across countries. Further, foreign demand shocks explain a larger portion of the forecast error variance of macroeconomic variables under a fixed than under a flexible exchange rate regime.
Journal: Applied Economics
Pages: 288-304
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645278
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645278
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Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:288-304
Template-Type: ReDIF-Article 1.0
Author-Name: Junwei Wang
Author-X-Name-First: Junwei
Author-X-Name-Last: Wang
Author-Name: Zhicheng Liang
Author-X-Name-First: Zhicheng
Author-X-Name-Last: Liang
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Title: Deviations between China’s and international gold price: role of fundamentals, contagion and financial shocks
Abstract:
China has been the world’s largest gold producer since 2007 and the world’s largest gold consumer since 2013. However, despite it being the second largest exchange-traded market in the world, gold price shows persistent volatility and deviations from the international gold price. This study explores the impact of fundamentals, global contagion and financial shocks on the gap between international and domestic gold price using an extended GARCH model. The empirical study shows that the exchange rate of renminbi plays an important role in moving the price gap. The global contagion factors associate more with the level of the price gap, not with the volatility; policy shocks do not present expected significant influence on the price gap. For black swan events, their impact on both level and volatility of the price gap is discernible.
Journal: Applied Economics
Pages: 305-316
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645279
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645279
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Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:305-316
Template-Type: ReDIF-Article 1.0
Author-Name: Ziming Liu
Author-X-Name-First: Ziming
Author-X-Name-Last: Liu
Author-Name: Lan Zhang
Author-X-Name-First: Lan
Author-X-Name-Last: Zhang
Author-Name: Jens Rommel
Author-X-Name-First: Jens
Author-X-Name-Last: Rommel
Author-Name: Shuyi Feng
Author-X-Name-First: Shuyi
Author-X-Name-Last: Feng
Title: Do land markets improve land-use efficiency? evidence from Jiangsu, China
Abstract:
Inefficient use of scarce and fragmented land challenges the sustainability of agriculture. Land markets may improve land-use efficiency. In recent years, China has employed various instruments to promote land markets. This paper investigates whether land markets affect households’ land-use efficiency, based on data from 1,202 farm households in Jiangsu Province. The measure of land-use efficiency was derived from a stochastic frontier production function, and a control function approach was employed to correct for selection bias. The results indicated that many households are using land inefficiently. While renting in land increases land-use efficiency, it is not affected by renting out land, implying that households are not giving up land for efficiency gains. We also provide suggestive evidence that the positive effect of renting in land results from abundant agricultural labour due to labour market failure.
Journal: Applied Economics
Pages: 317-330
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645286
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645286
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Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:317-330
Template-Type: ReDIF-Article 1.0
Author-Name: Saeid Karimi
Author-X-Name-First: Saeid
Author-X-Name-Last: Karimi
Title: The role of entrepreneurial passion in the formation of students’ entrepreneurial intentions
Abstract:
Entrepreneurial passion has been suggested as an entrepreneur’s central characteristic, theorized to affect a host of entrepreneurial behaviours. Considering the theory of planned behaviour (TPB), a conceptual model was developed and tested which integrated both cognitive (namely, subjective norms, attitudes toward perceived behavioural control and entrepreneurship) and emotional (namely, entrepreneurial passion) factors to determine their contributions to entrepreneurial intentions. This is a quantitative study using a self-report survey for data collection. The hypotheses were examined with 250 university students sample applying the partial least squares method. The results indicate a significant indirect relationship between entrepreneurial passion and entrepreneurial intentions via their cognitive antecedents (attitudes toward entrepreneurship and perceived behavioural control). The study contributes to the emerging research of entrepreneurial passion in the entrepreneurship field and heightens its role as a factor that should be taken into account to improve entrepreneurship education programs.
Journal: Applied Economics
Pages: 331-344
Issue: 3
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1645287
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1645287
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Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:331-344
Template-Type: ReDIF-Article 1.0
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Author-Name: Nicole Jonker
Author-X-Name-First: Nicole
Author-X-Name-Last: Jonker
Title: Pension profile preferences: the influence of trust and expected expenses
Abstract:
This paper studies the influence of people’s expectations about expenses during retirement and trust in pension funds on preferences for different pension arrangements. Although most workers prefer a flat-rate annuity, many workers want to deviate from it. The most popular option is a high/low, annuity-based profile, followed by a partial lump sum payment. Workers who expect declining expenses during retirement are more likely to opt for a high/low annuity-based pension and/or a lump sum payment at retirement. Furthermore, workers and pensioners who do not trust their pension fund are more likely to prefer a lump sum over annuity-based arrangements.
Journal: Applied Economics
Pages: 1212-1231
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527010
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527010
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Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1212-1231
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Duncan
Author-X-Name-First: Alan
Author-X-Name-Last: Duncan
Author-Name: Astghik Mavisakalyan
Author-X-Name-First: Astghik
Author-X-Name-Last: Mavisakalyan
Author-Name: Yashar Tarverdi
Author-X-Name-First: Yashar
Author-X-Name-Last: Tarverdi
Title: Self-assessed vs. statistical evidence of racial discrimination: the case of indigenous Australians
Abstract:
This paper provides new insights on the labour market discrimination faced by indigenous Australians one of the most disadvantaged indigenous populations in developed countries. Combining two large, nationally representative datasets, we decompose the employment gap between indigenous and non-indigenous populations as of 2014–2015, and show that differences in characteristics between the two groups account for only 43% of the employment gap for females, and 23% of the gap for males. We then demonstrate that statistical measures are positively related to discrimination reports of females and negatively related to discrimination reports of males. Our findings underscore the importance of improving transparency in employment processes for addressing the issue of disadvantage of racial minorities.
Journal: Applied Economics
Pages: 1232-1247
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527442
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527442
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Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1232-1247
Template-Type: ReDIF-Article 1.0
Author-Name: Klenio Barbosa
Author-X-Name-First: Klenio
Author-X-Name-Last: Barbosa
Author-Name: Seiji Fetter
Author-X-Name-First: Seiji
Author-X-Name-Last: Fetter
Author-Name: Bruno de Paula Rocha
Author-X-Name-First: Bruno de Paula
Author-X-Name-Last: Rocha
Title: An empirical procedure to evaluate monetary management under exogenous changes in the money supply
Abstract:
This article proposes an empirical procedure to evaluate central banks’ monetary management in a presence of exogenous changes in the money supply. Monetary shocks deviate the market interest rate from the target, and the monetary authority decides its optimal intervention in the money market, bearing in mind the benefits and costs of re-establishing its target interest rate. According to monetary management theory, typically a central bank will allow for variation in the interest rate within a range around the target interest rate, thereby intervening in the money market when the interest rate trends toward a point outside that range. In this context, we develop an empirical strategy to analyse central bank’s reactions to exogenous money changes by making a statistical comparison of the actual and the estimated intraday shift in the money supply. We also employ our method to test the reactions of the Brazilian Central Bank to liquidity shifts caused by changes in the Treasury Single Account (TSA) balance. Using different metrics of analysis, the applications of our procedure confirms the predictions of the optimal monetary management theory.
Journal: Applied Economics
Pages: 1248-1267
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527443
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527443
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Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1248-1267
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bergholz
Author-X-Name-First: Christian
Author-X-Name-Last: Bergholz
Author-Name: Ivo Bischoff
Author-X-Name-First: Ivo
Author-X-Name-Last: Bischoff
Title: Citizens’ support for inter-municipal cooperation: evidence from a survey in the German state of Hesse
Abstract:
Inter-municipal cooperation (IMC) is often proposed as a politically feasible way by which rural municipalities can cope with intensified interregional competition and demographic change. We provide first evidence on citizens’ support for IMC using survey data from rural Germany. We find little evidence that citizens are more willing to support IMC in munici-palities that can – by the logic of economic theory – expect higher net benefits from IMC. Citizens’ support for IMC is primarily shaped by individual-level factors like the level of education, trust in local politicians and the degree of emotional attachment to the home mu-nicipality. Citizens’ beliefs regarding the economic and political consequences of IMC are found to have the largest marginal effect by far. Regressions predicting interpersonal differ-ences in these beliefs show that these beliefs have to be considered independent drivers of policy preferences. This result suggests that more research is needed to better understand the factors shaping citizens’ understanding of how economic policy works. This lack of under-standing applies to virtually all fields of economic policy.
Journal: Applied Economics
Pages: 1268-1283
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527444
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527444
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Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1268-1283
Template-Type: ReDIF-Article 1.0
Author-Name: Francesco Renna
Author-X-Name-First: Francesco
Author-X-Name-Last: Renna
Author-Name: Amanda Weinstein
Author-X-Name-First: Amanda
Author-X-Name-Last: Weinstein
Title: The veteran wage differential
Abstract:
There is debate in the literature as to whether military service is rewarded in the economy and the extent to which veterans receive either a wage premium or penalty. In this paper, we take a new approach to this question by conducting a wage decomposition of the veteran wage differential and decomposing the wage distribution of veterans and civilians instead of focusing only on the standard wage gap analysis at the averages. We find the veteran wage differential is driven by observable factors such as education, occupation, and industry, but also by location choice, a factor that has been previously overlooked in the literature. At the average, we find white men experience a veteran penalty whereas black men and women experience a veteran premium consistent with the bridging hypothesis. Additionally, we find that as we move along the wage distribution for all demographic groups, the veteran premium tends to become a veteran penalty, even after accounting for selection into military service. However, once we account for selection, we find that the premium for veteran black men disappears.
Journal: Applied Economics
Pages: 1284-1302
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527445
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527445
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Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1284-1302
Template-Type: ReDIF-Article 1.0
Author-Name: Yajuan Li
Author-X-Name-First: Yajuan
Author-X-Name-Last: Li
Author-Name: Marco A. Palma
Author-X-Name-First: Marco A.
Author-X-Name-Last: Palma
Author-Name: Charles R. Hall
Author-X-Name-First: Charles R.
Author-X-Name-Last: Hall
Author-Name: Hayk Khachatryan
Author-X-Name-First: Hayk
Author-X-Name-Last: Khachatryan
Author-Name: Oral Capps
Author-X-Name-First: Oral
Author-X-Name-Last: Capps
Title: Measuring the effects of advertising on green industry sales: a generalized propensity score approach
Abstract:
This article estimates the effects of advertising expenditures on annual gross sales of green industry firms using a quasi-experimental framework. In order to account for potential selection bias, a generalized propensity score and a dose-response function are used to estimate advertising treatment effects. The method used allows us to investigate the relationship between the dose (advertising expenditures) and the response (firm sales). We use data from the National Green Industry Surveys of 2009 and 2014 to conduct the analysis. To further investigate potential heterogeneous advertising effects of the size of the firms, we separate the sample into small firms and large firms, according to their annual gross sales. The results indicate that the magnitude and shape of the response function depend on the size of the firm. For small firms, increasing advertising spending yields to higher sales within a range of advertising spending. Beyond this range, advertising spending increases do not impact sales any more. Thus, small firms’ management should carefully monitor advertising input. For large firms, on the other hand, the current evidence does not support a positive relationship between advertising spending and sales since the marginal treatment effect is insignificant almost over the entire range of adverting spending.
Journal: Applied Economics
Pages: 1303-1318
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527448
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527448
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Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1303-1318
Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Title: The long-run effect of aid on health: evidence from panel cointegration analysis
Abstract:
Although a major objective of aid donors is to improve health outcomes in recipient countries, there is relatively little research on whether aid to the health sector leads to improved health outcomes, and even less on the impact of total aid. This paper examines the relationship between total aid and population health using panel cointegration and causality techniques designed to deal with problems afflicting previous aid-health studies: spurious regressions, omitted variables, endogeneity, cross-sectional dependence, and parameter heterogeneity. The main results are: (i) aid has, on average, a small but negative long-run effect on health, (ii) while the long-run (or trend) effect of aid on health is negative, the short-run (temporary) effect of aid on health is positive, (iii) causality runs in only one direction, from aid to health, and (iv) aid worsens health mainly in sub-Saharan countries, but has a positive, albeit statistically insignificant, long-run impact on health in Latin American and Caribbean countries and in countries with negative values of net ODA.
Journal: Applied Economics
Pages: 1319-1338
Issue: 12
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527449
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Handle: RePEc:taf:applec:v:51:y:2019:i:12:p:1319-1338
Template-Type: ReDIF-Article 1.0
Author-Name: Liangliang He
Author-X-Name-First: Liangliang
Author-X-Name-Last: He
Author-Name: Lei Chen
Author-X-Name-First: Lei
Author-X-Name-Last: Chen
Author-Name: Frank Hong Liu
Author-X-Name-First: Frank Hong
Author-X-Name-Last: Liu
Title: Banking reforms, performance and risk in China
Abstract:
We investigate the impact of the banking reform started from 2005 on ownership structures in China on commercial banks’ profitability, efficiency and risk over the period 2000–2012, providing comprehensive evidence on the impact of banking reform in China. We find that banks on average tend to have higher profitability, lower risk and lower efficiency after the reforms, and the results are robust with our difference-in-difference approach. Our results also show that the Big 5 state-owned banks (SOCB) underperform banks with other types of ownership when risk is measured by non-performing loans (NPLs) over the entire study period but tend to have fewer NPLs than other banks during the post-reform period. Our results provide some supporting evidence on the ongoing banking reforms in China, suggesting that attracting strategic foreign investors and listing SOCBs on stock exchanges appear to be effective ways to help SOCBs deal with the problem of NPLs and manage their risk.
Journal: Applied Economics
Pages: 3995-4012
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273501
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273501
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Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:3995-4012
Template-Type: ReDIF-Article 1.0
Author-Name: V. Vandenberghe
Author-X-Name-First: V.
Author-X-Name-Last: Vandenberghe
Title: The productivity challenge. What to expect from better-quality labour and capital inputs?
Abstract:
The aim of this article is to develop and implement an analytical framework assessing whether better-quality inputs, via a rise of TFP, could compensate an ageing-induced slowing of economic growth. Here ‘better-quality’ means more educated and older/more experienced workforces; and also better-quality capital proxied by its ICT content. Economic theory predicts that these trends should raise TFP. To assess these predictions, we use EU-KLEMS data, with information on the age/education mix of the workforce, as well as the importance on ICT in total capital, for 34 industries within 16 OECD countries, between 1970 and 2005. We generalize the Hellerstein–Neumark labour-quality index method to simultaneously capture workers’ age/experience or education contribution to TFP growth, alongside that of ICT. The conclusion of the article is that the quality of inputs matters for TFP. We find robust microeconometric evidence that better-educated and older/more experienced workers are more productive than their less-educated and younger/less-experienced peers. Also, ICT capital turns out to be more productive than other forms of capital. And when used in a growth accounting exercise covering the 1995–2005 period, these estimates suggest that up to 40% of the recorded TFP growth could be ascribed to the rising quality of inputs.
Journal: Applied Economics
Pages: 4013-4025
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273504
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273504
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Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4013-4025
Template-Type: ReDIF-Article 1.0
Author-Name: José Fajardo
Author-X-Name-First: José
Author-X-Name-Last: Fajardo
Title: A new factor to explain implied volatility smirk
Abstract:
In this article, we find empirical evidence of a new smirk factor, obtained from the jump structure of the risk neutral distribution of the underlying Lévy process. As an application we show how to price a barrier style contract.
Journal: Applied Economics
Pages: 4026-4034
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273505
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273505
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Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4026-4034
Template-Type: ReDIF-Article 1.0
Author-Name: Raphaël Homayoun Boroumand
Author-X-Name-First: Raphaël Homayoun
Author-X-Name-Last: Boroumand
Author-Name: Stéphane Goutte
Author-X-Name-First: Stéphane
Author-X-Name-Last: Goutte
Author-Name: Simon Porcher
Author-X-Name-First: Simon
Author-X-Name-Last: Porcher
Author-Name: Thomas Porcher
Author-X-Name-First: Thomas
Author-X-Name-Last: Porcher
Title: Jumps and volatility dynamics in agricultural commodity spot prices
Abstract:
The spot commodities market exhibits both extreme volatility and price spikes, which lead to heavy-tailed distributions of price change and autocorrelation. This article uses various Lévy jump models to capture these features in a panel of agricultural commodities observed between January 1990 and February 2014. The results show that Levy jump models outperform the continuous Gaussian model. Our results prove that assuming a constant volatility or even a deterministic volatility and drift structure of agricultural commodity spot prices is not realistic and is less efficient than the stochastic assumption. The findings demonstrate an interesting correlation between volatility and jumps for a given commodity i, but no relationship between the volatility of commodity i and the probability of jumps of commodity j.
Journal: Applied Economics
Pages: 4035-4054
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273507
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273507
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Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4035-4054
Template-Type: ReDIF-Article 1.0
Author-Name: José M. Belbute
Author-X-Name-First: José M.
Author-X-Name-Last: Belbute
Author-Name: Alfredo M. Pereira
Author-X-Name-First: Alfredo M.
Author-X-Name-Last: Pereira
Title: Do global CO emissions from fossil-fuel consumption exhibit long memory? a fractional-integration analysis
Abstract:
In this article we use an autoregressive fractionally integrated moving average approach to measure the degree of fractional integration of aggregate world CO2 emissions and its five components – coal, oil, gas, cement, and gas flaring. We find that all variables are stationary and mean reverting, but exhibit long-term memory. Our results suggest that both coal and oil combustion emissions have the weakest degree of long-range dependence, while emissions from gas and gas flaring have the strongest. With evidence of long memory, we conclude that transitory policy shocks are likely to have long-lasting effects, but not permanent effects. Accordingly, permanent effects on CO2 emissions require a more permanent policy stance. In this context, if one were to rely only on testing for stationarity and non-stationarity, one would likely conclude in favour of non-stationarity, and therefore that even transitory policy shocks have permanent effects. Our fractional-integration analysis highlights that this is not the case.
Journal: Applied Economics
Pages: 4055-4070
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1273508
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1273508
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Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4055-4070
Template-Type: ReDIF-Article 1.0
Author-Name: Shang Wu
Author-X-Name-First: Shang
Author-X-Name-Last: Wu
Author-Name: Jenna Toussaint
Author-X-Name-First: Jenna
Author-X-Name-Last: Toussaint
Author-Name: Kent D. Messer
Author-X-Name-First: Kent D.
Author-X-Name-Last: Messer
Title: Maximizing benefits in project selection: a hybrid approach
Abstract:
Charitable foundations and government programmes should endeavour to allocate their limited resources to best serve their constituents. Yet, mathematical programming techniques are rarely used despite overwhelming evidence of their superiority in selecting projects that yield higher levels of total benefits. We present a novel ‘hybrid selection model’ that combines binary linear programming and heuristic rank-based models applied to two case studies. The first case focuses on providing services to women and shows a hybrid model would have selected the top three ‘signature’ projects and maintained an above-average overall project benefit while securing a 180% improvement in the number of projects funded, a 66% improvement in the number of women served and a 132% improvement in the total benefit achieved. In the second case, we apply the hybrid approach to data from the US government’s largest forest preservation programme and demonstrate that the hybrid approach could allow the programme to select up to 11 top-scoring projects while still achieving a 97% gain in the total overall benefit compared to their traditional method. These case studies show that the hybrid approach has the potential to be applied in a variety of settings and improve how foundations and programmes achieve their goals.
Journal: Applied Economics
Pages: 4071-4082
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1276267
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276267
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Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4071-4082
Template-Type: ReDIF-Article 1.0
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Author-Name: Benoît Sévi
Author-X-Name-First: Benoît
Author-X-Name-Last: Sévi
Author-Name: Bo Sjö
Author-X-Name-First: Bo
Author-X-Name-Last: Sjö
Author-Name: Gazi Salah Uddin
Author-X-Name-First: Gazi Salah
Author-X-Name-Last: Uddin
Title: The role of trade openness and investment in examining the energy-growth-pollution nexus: empirical evidence for China and India
Abstract:
Most of the existing literature dealing with the relationship between carbon emissions, energy consumption and economic growth either suffers from ignoring relevant variables such as trade openness or investment, or suffers from using econometric methods that are unable to distinguish between short- and long-term causality and are not robust to the degree of integration of time series used for the analysis. This article suggests using the autoregressive distributed lag approach along with additional explanatory variables such as measures of trade and investment to shed a new light on the link between emissions, energy consumption and income in the two largest and energy-intensive developing economies: China and India. Our results, over the 1971–2009 period, provide evidence that investment plays a major role in shaping the relationship between carbon emissions, energy consumption and income in China while this is not the case in India. Furthermore, trade openness is found to play a key function in the short term in China but does not contribute to the emissions-energy-growth scenario in India.
Journal: Applied Economics
Pages: 4083-4098
Issue: 40
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1276268
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1276268
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Handle: RePEc:taf:applec:v:49:y:2017:i:40:p:4083-4098
Template-Type: ReDIF-Article 1.0
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Mahamitra Das
Author-X-Name-First: Mahamitra
Author-X-Name-Last: Das
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Title: Spillovers between Bitcoin and other assets during bear and bull markets
Abstract:
This article contributes to the embryonic literature on the relations between Bitcoin and conventional investments by studying return and volatility spillovers between this largest cryptocurrency and four asset classes (equities, stocks, commodities, currencies and bonds) in bear and bull market conditions. We conducted empirical analyses based on a smooth transition VAR GARCH-in-mean model covering daily data from 19 July 2010 to 31 October 2017. We found significant evidence that Bitcoin returns are related quite closely to those of most of the other assets studies, particularly commodities, and therefore, the Bitcoin market is not isolated completely. The significance and sign of the spillovers exhibited some differences in the two market conditions and in the direction of the spillovers, with greater evidence that Bitcoin receives more volatility than it transmits. Our findings have implications for investors and fund managers who are considering Bitcoin as part of their investment strategies and for policymakers concerned about the vulnerability that Bitcoin represents to the stability of the global financial system.
Journal: Applied Economics
Pages: 5935-5949
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488075
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488075
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Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5935-5949
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Pengfei Wang
Author-X-Name-First: Pengfei
Author-X-Name-Last: Wang
Author-Name: Xiao Li
Author-X-Name-First: Xiao
Author-X-Name-Last: Li
Author-Name: Dehua Shen
Author-X-Name-First: Dehua
Author-X-Name-Last: Shen
Title: Some stylized facts of the cryptocurrency market
Abstract:
We examine the stylized facts of eight forms of cryptocurrencies representing almost 70% of cryptocurrency market capitalization. In particular, the empirical results show that (1) there exists heavy tails for all the returns of cryptocurrencies; (2) the autocorrelations for returns decay quickly, while the autocorrelations for absolute returns decay slowly; (3) returns of cryptocurrencies display strong volatility clustering and leverage effects; (4) Hurst exponent for volatility is more volatile than that of the returns, while they all suggest the long-range dependence phenomena; and (5) there exists power-law correlation between price and volume.
Journal: Applied Economics
Pages: 5950-5965
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488076
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488076
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Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5950-5965
Template-Type: ReDIF-Article 1.0
Author-Name: Renato A. Villano
Author-X-Name-First: Renato A.
Author-X-Name-Last: Villano
Author-Name: Carolyn-Dung T. T. Tran
Author-X-Name-First: Carolyn-Dung T. T.
Author-X-Name-Last: Tran
Title: Performance of private higher education institutions in Vietnam: evidence using DEA-based bootstrap directional distance approach with quasi-fixed inputs
Abstract:
Vietnam’s higher education has witnessed substantial improvements since the implementation of the Doi Moi (renovation) policy. One of the significant developments is the promotion of establishment and enhancement of the role of private institutions in national education systems. However, the quest to improve the overall performance of the private higher education institutions remains a big challenge for many stakeholders. We assess the performance of Vietnamese private universities using a data envelopment analysis–based bootstrap directional distance approach with quasi-fixed inputs. The results show that there was a large variation in the efficiency levels of private universities within and between academic years and between metropolitan and other private universities. Our empirical findings provide more insights for educational leaders and policy makers on the performance of private higher education institutions and the implications of privatization of the national higher education system.
Journal: Applied Economics
Pages: 5966-5978
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1488077
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488077
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Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5966-5978
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Paula Macedo de Avellar
Author-X-Name-First: Ana Paula Macedo de
Author-X-Name-Last: Avellar
Author-Name: Marisa dos Reis Azevedo Botelho
Author-X-Name-First: Marisa dos Reis Azevedo
Author-X-Name-Last: Botelho
Title: Impact of innovation policies on small, medium and large Brazilian firms
Abstract:
This study comprises a comparative examination of the effects of innovation support programmes’ spend on innovative activities in small, medium and large Brazilian firms. The econometric methodology propensity score matching is used to assess the impacts of tax and financial incentives based on. Results show that innovation support programmes stimulate expenditure on innovative activities, especially financial incentives for the acquisition of machinery and equipment.
Journal: Applied Economics
Pages: 5979-5995
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489109
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489109
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Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5979-5995
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Gugler
Author-X-Name-First: Klaus
Author-X-Name-Last: Gugler
Author-Name: Evgeni Peev
Author-X-Name-First: Evgeni
Author-X-Name-Last: Peev
Title: The persistence of profits in banking: an international comparison
Abstract:
This article examines the dynamics of bank profitability in the USA, Germany, Great Britain, France, Italy and Switzerland over the period 1993–2014. We find long-run bank profit persistence in all six countries in the period before the financial crisis in 2008. Banks with large capital ratios are persistently more profitable, and there is little evidence of a link between bank size and the persistence of bank profits. Commercial (saving) banks are persistently more (less) profitable in four of the six countries. The effects of the financial crisis in 2008 differed dramatically across countries as well as across ownership types. While US banks experienced dramatic declines in the immediate aftermath of the crisis, they recovered much faster than their European counterparts and essentially retain their long run profit potential by the year 2014.
Journal: Applied Economics
Pages: 5996-6009
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489111
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489111
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Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:5996-6009
Template-Type: ReDIF-Article 1.0
Author-Name: Suraj Kumar
Author-X-Name-First: Suraj
Author-X-Name-Last: Kumar
Author-Name: Krishna Prasanna
Author-X-Name-First: Krishna
Author-X-Name-Last: Prasanna
Title: Liquidity in Asian markets: Intensity of Regional and global linkages
Abstract:
This study investigates cross-market linkages and the intensity of liquidity spillovers across nine Asian markets and five developed markets during 2006 to 2016. Further, the study examines the contagion caused by recent global financial crisis and its impact on the market liquidity. The direction and intensity of spillovers has been measured using forecast error variance decomposition method as suggested by Diebold and Yilmaz (2012). Among the developed markets, the United States, Germany and the United Kingdom significantly affect liquidity changes in Asian countries like India, China, Singapore and Japan. The results revels that on average, each Asian market receives 7% spillover from the global markets and 16% from regional markets. During the financial crisis, the average regional spillover increased to 20% and the global spillover increased to 11%. Thus, in Asia, the regional spillover is higher than the global spillover. Our results support the demand side hypothesis and suggest that it is the trade and portfolio investments that drive the liquidity spillovers. Our findings have potential implications for international investors, policy makers and market regulators.
Journal: Applied Economics
Pages: 6010-6023
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489112
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489112
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Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:6010-6023
Template-Type: ReDIF-Article 1.0
Author-Name: Lixin Cai
Author-X-Name-First: Lixin
Author-X-Name-Last: Cai
Author-Name: Yong Jin
Author-X-Name-First: Yong
Author-X-Name-Last: Jin
Author-Name: Qiulin Qi
Author-X-Name-First: Qiulin
Author-X-Name-Last: Qi
Author-Name: Xin Xu
Author-X-Name-First: Xin
Author-X-Name-Last: Xu
Title: A comprehensive study on smart beta strategies in the A-share market
Abstract:
In this article, we explore how smart beta strategies are applied in the Chinese A-share market. Specifically, we empirically examine several popular smart beta strategies, including mean-variance optimization, minimum-variance portfolio, equal weighting, risk parity strategy, and fundamental indexation, and we do so using the Shanghai Stock Exchange (SSE) 50 index and SSE sector indices as our comparison benchmarks. We find that all smart beta strategies outperform these benchmarks from year 2006 to year 2015, and that all smart beta strategies outperform the SSE 50 index by an average of 2.57% per year. In turn, these strategies improve the Sharpe Ratio by 46.2% on average.
Journal: Applied Economics
Pages: 6024-6033
Issue: 55
Volume: 50
Year: 2018
Month: 11
X-DOI: 10.1080/00036846.2018.1489113
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489113
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Handle: RePEc:taf:applec:v:50:y:2018:i:55:p:6024-6033
Template-Type: ReDIF-Article 1.0
Author-Name: Laura Vallejo-Torres
Author-X-Name-First: Laura
Author-X-Name-Last: Vallejo-Torres
Author-Name: Stephen Morris
Author-X-Name-First: Stephen
Author-X-Name-Last: Morris
Author-Name: Beatriz G. Lopez-Valcarcel
Author-X-Name-First: Beatriz G.
Author-X-Name-Last: Lopez-Valcarcel
Title: Obesity and perceived work discrimination in Spain
Abstract:
Obesity is increasingly becoming a source of discrimination in many domains of living, including at the workplace. In this study, we estimate obesity-related discrimination in work settings in Spain and explore its potential sources. We use data from the European Health Interview Survey conducted in 2009–2010. Our models control for a comprehensive set of demographic, socioeconomic, health, and work-related sickness characteristics. We run separate models for women and men, and stratify by type of occupation and by area obesity prevalence. Our results indicate that weight-related discrimination in work settings in Spain is concentrated among women with morbid obesity, particularly among those working in customer-facing jobs and living in areas with low-obesity prevalence. These findings emphasize the persistence of the gendered nature of obesity-related discrimination, and provide evidence of a form of induced statistical discrimination. Employers’ expectations of lower returns from obese workers in customer facing jobs might be driven by customers’ preferences caused by social stigma. Furthermore, the role of area-obesity prevalence highlights the impact of cultural social norms even within the same country.
Journal: Applied Economics
Pages: 3870-3884
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2017.1400654
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400654
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Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3870-3884
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Le Pape
Author-X-Name-First: Nicolas
Author-X-Name-Last: Le Pape
Author-Name: Yongying Wang
Author-X-Name-First: Yongying
Author-X-Name-Last: Wang
Title: Stakeholders’ relationships and product market competition
Abstract:
In this article, we study the relationships between main stakeholders (shareholders, consumers and employees) when firms are consumer oriented (CO) in the sense of caring about consumers’ interests in the objective function. We let these firms first bargain with labour union over their employees’ wages and then compete either in the quantity space (Cournot competition) or in the price space (Bertrand competition). Our model shows that taking care of the consumers’ interests when determining product market strategies may reverse the traditional ranking between Cournot and Bertrand equilibria. This implies that if shareholders in a CO firm can choose either a quantity or a price strategy, they will surprisingly choose the latter. Moreover, we show that the conflicting interests between main stakeholders are attenuated under Bertrand competition compared to Cournot competition.
Journal: Applied Economics
Pages: 3885-3898
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430342
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430342
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Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3885-3898
Template-Type: ReDIF-Article 1.0
Author-Name: Nafeesa Yunus
Author-X-Name-First: Nafeesa
Author-X-Name-Last: Yunus
Title: Transmission of shocks across global real estate and equity markets: An examination of the 2007–2008 housing crisis
Abstract:
This study analyses the impact of the 2007–2008 U.S. financial crisis on the structure of interdependence among several major global real estate and equity markets. Moreover, it performs a step-by-step comparative analysis to evaluate similarities and differences in the convergence patterns of global real estate markets vis-à-vis global equity markets. Long-run results indicate that global real estate markets were less integrated than global equity markets prior to the crisis. Since the crisis, however, both global real estate and global equity markets have become highly integrated with the U.S. real estate and equity markets, respectively, and have fully converged. Short-run analyses indicate that during the pre-crisis period, global real estate markets were highly exogenous and independent. In contrast, global equity markets were comparatively more interdependent with one another and more endogenous. After the crisis, however, both global real estate and equity markets reacted strongly to shocks emanating from the U.S. markets, although the impact of the U.S. real estate market on the global real estate market is more pronounced than the effect of the U.S. equity market on the global equity markets. Finally, the study shows that U.S. real estate and equity markets are the channels of transmission or the sources of trends that drive global markets over the long-run and the short-run.
Journal: Applied Economics
Pages: 3899-3922
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430343
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430343
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Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3899-3922
Template-Type: ReDIF-Article 1.0
Author-Name: José Da Fonseca
Author-X-Name-First: José
Author-X-Name-Last: Da Fonseca
Author-Name: Katja Ignatieva
Author-X-Name-First: Katja
Author-X-Name-Last: Ignatieva
Title: Volatility spillovers and connectedness among credit default swap sector indexes
Abstract:
This article studies volatility spill-over effects and market connectedness using daily data of credit default swap spreads for U.S. companies over a period from 2007 to 2012. We quantify volatility spillovers by means of an unconditional analysis performed using the entire sample, and a conditional analysis which estimates the model using a rolling window. As our database contains the global financial crisis (GFC), we are able to determine how volatility spillovers spread in the economy during the recent market turmoil. Our unconditional results confirm that the Financials sector was a main contributor to the overall market volatility along with the Consumer Goods, Consumer Services and Basic Materials sectors. The conditional analysis clearly identifies that the Financials was the major feeding sector of volatility spill-over effects, and that the market volatility was successively driven by Technology and Basic Materials over a rather short period of time, followed by Consumer Goods and Consumer Services over a prolonged period of time. Our results illustrate indirect linkages between the sectors that conveyed shocks during the GFC.
Journal: Applied Economics
Pages: 3923-3936
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430344
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430344
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Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3923-3936
Template-Type: ReDIF-Article 1.0
Author-Name: Lester Lusher
Author-X-Name-First: Lester
Author-X-Name-Last: Lusher
Author-Name: Chuan He
Author-X-Name-First: Chuan
Author-X-Name-Last: He
Author-Name: Stephen Fick
Author-X-Name-First: Stephen
Author-X-Name-Last: Fick
Title: Are professional basketball players reference-dependent?
Abstract:
Models with reference-dependent preferences suggest that agents exert considerable effort to avoid falling below a reference point and ‘losing’. We provide visual and statistical evidence that player performances in the National Basketball Association (NBA) bunch at salient, normatively extraneous round numbers. Using data on nearly three million shot attempts with precise ($$x$$x
, $$y$$y
) coordinates, we find that players improve free throw accuracy and attempt shots closer to the hoop when shooting for a round number. The results are strongest for players on home teams, suggesting that the reference-dependent enters preferences through an external, social evaluation channel.
Journal: Applied Economics
Pages: 3937-3948
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430345
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430345
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Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3937-3948
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Alexakis
Author-X-Name-First: Christos
Author-X-Name-Last: Alexakis
Author-Name: Mark Cummins
Author-X-Name-First: Mark
Author-X-Name-Last: Cummins
Author-Name: Michael Dowling
Author-X-Name-First: Michael
Author-X-Name-Last: Dowling
Author-Name: Vasileios Pappas
Author-X-Name-First: Vasileios
Author-X-Name-Last: Pappas
Title: A high-frequency analysis of price resolution and pricing barriers in equities on the adoption of a new currency
Abstract:
We use ultra high frequency (trade by trade) data to demonstrate that equity price clustering and pricing predictability around psychologically important prices in Greece switches away from drachma-focused with the introduction of the euro, but does not immediately switch to euro-clustering. The change in trader price focus around the euro introduction addresses an open debate in the clustering literature on whether the presence of clustering is a bias related to the current prices or anchoring to past prices. Our findings of a decline in drachma clustering, but lack of switch to euro effects supports the case for clustering being a trading feature that is slow to transfer to new pricing regimes. A key advantage of the ultra high frequency dataset is we are also able to demonstrate the presence of psychological pricing barriers related to each currency that are not detectable in daily data.
Journal: Applied Economics
Pages: 3949-3965
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430347
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430347
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Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3949-3965
Template-Type: ReDIF-Article 1.0
Author-Name: Álvaro Escribano
Author-X-Name-First: Álvaro
Author-X-Name-Last: Escribano
Author-Name: M. Teresa Santos-Martín
Author-X-Name-First: M. Teresa
Author-X-Name-Last: Santos-Martín
Author-Name: Ana E. Sipols
Author-X-Name-First: Ana E.
Author-X-Name-Last: Sipols
Title: A new Cramer-Von Misses cointegration test with application to environmental Kuznets curve
Abstract:
This article introduces a new Cramer-Von Misses (CVM) cointegration test robust to nonlinearities. We characterize nonlinear cointegration in terms of a nonlinear moving-average filter (high pass filter) of a matrix based on permutation matrices on the discrepancy of empirical distributions. A Cramer-Von Misses (CVM) test statistic is proposed for testing the null hypothesis of two independent random walks against a broad range of cointegrating alternatives with monotonic nonlinearities and level shifts in the cointegration relationship. We derive the asymptotic distribution of this induced-order Cramer-Von Misses (CVM) cointegration test. This new non-parametric test statistic has two important properties: the invariance to monotonic transformations of the series and the robustness for the presence of several parameter shifts or structural changes. We analyse the small sample properties of this test by Monte Carlo simulations and evaluate the power of the test. Finally, this CVM test is applied to the analysis of long run environmental Kuznets curve which relates economic growth and pollution. In particular, we consider a nonlinear cointegration between gross domestic product (GDP) and CO2 emissions. Our new CVM test is able to find evidence of cointegration while classical single equation cointegration tests are not.
Journal: Applied Economics
Pages: 3966-3978
Issue: 36
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1430348
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1430348
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Handle: RePEc:taf:applec:v:50:y:2018:i:36:p:3966-3978
Template-Type: ReDIF-Article 1.0
Author-Name: Iryna Topolyan
Author-X-Name-First: Iryna
Author-X-Name-Last: Topolyan
Author-Name: Xu Xu
Author-X-Name-First: Xu
Author-X-Name-Last: Xu
Title: Differential effects of mother’s and child’s postnatal WIC participation on breastfeeding
Abstract:
We evaluate the effect of postnatal participation in the Women, Infants, and Children (WIC) programme on breastfeeding decisions using the data from the IFPS II. We find that the infant’s WIC participation positively affects the hazard of discontinuing breastfeeding, both partial and exclusive (and is thus associated with abbreviated breastfeeding duration). No significant association is found between the mother’s participation and the hazards of stopping exclusive or partial breastfeeding. Such differential effects might be a result of the programme’s policy, according to which the infant, but not the mother needs to be enrolled to receive free formula.
Journal: Applied Economics
Pages: 2216-2225
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234702
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234702
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Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2216-2225
Template-Type: ReDIF-Article 1.0
Author-Name: Yihao Zhang
Author-X-Name-First: Yihao
Author-X-Name-Last: Zhang
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Author-Name: Yongji Guo
Author-X-Name-First: Yongji
Author-X-Name-Last: Guo
Title: The effects of haze pollution on stock performances: evidence from China
Abstract:
Haze pollution has become the most important environmental issue in China in recent years. Using the data of PM2.5 concentration and stocks of listed companies located in Beijing between 2010 and 2014, this article investigates the effects of haze pollution on stock performances. Empirical results indicate that haze pollution has significant negative effects on stock returns and significant positive effects on stock volatilities, through the channel of investors’ mood. Furthermore, the effects of haze pollution on stock returns emerge gradually and the effects of haze pollution on stock volatilities weaken gradually over time during a trading day.
Journal: Applied Economics
Pages: 2226-2237
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234703
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234703
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Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2226-2237
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaodong Chen
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Chen
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Author-Name: Kun Tian
Author-X-Name-First: Kun
Author-X-Name-Last: Tian
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: Who provides the capital for Chinese growth: the public or the private sector?
Abstract:
We focus on the role of the government in the provision of investment in China, through the medium of a Dynamic Stochastic General Equilibrium model of the economy in which the form of the production function reflects this governmental role. Using indirect inference, we estimate and test for the elasticity of substitution between government and nongovernment capital in both Constant Elasticity of Substitution (CES) and Cobb–Douglas technologies. The results underscore the strong substitution relationship between government and nongovernment capital from 1949, supporting CES rather than the Cobb–Douglas technology. They also show that the orientation of public investment changed after the start of the ‘Socialist Market Economy’ in 1992: government capital became more complementary to nongovernment capital as it focused more on infrastructure and withdrew from industrial production, intervening only in times of crisis, for stabilization purposes, indirectly via the state banks.
Journal: Applied Economics
Pages: 2238-2252
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1234704
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1234704
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Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2238-2252
Template-Type: ReDIF-Article 1.0
Author-Name: Majed Barjas G. Alotaibi
Author-X-Name-First: Majed Barjas G.
Author-X-Name-Last: Alotaibi
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Title: The relationship between export market orientation and export performance: an empirical study
Abstract:
This article investigates the relationship between export market orientation and export performance in Saudi export firms. Questionnaire method was used to collect the data from managers of export firms with the mediating role of export strategy. The data were analysed using structural equation modelling (SEM) implemented using AMOS software. Results of SEM analysis showed that export market orientation has impact on export performance. The mediator variable export strategy was found to have partial mediation role in the relationship. This article joins the literature of international trade by adding the perspective of Saudi export firms. Managers of export firms can employ the study to support their firm towards the effect of market orientation on their performance.
Journal: Applied Economics
Pages: 2253-2258
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237743
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237743
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Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2253-2258
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Author-Name: Li Qin
Author-X-Name-First: Li
Author-X-Name-Last: Qin
Title: A new generalized volatility proxy via the stochastic volatility model
Abstract:
This article proposes power transformation of absolute returns as a new proxy of latent volatility in the stochastic model. We generalize absolute returns as a proxy for volatility in that we place no restriction on the power of absolute returns. An empirical investigation on the bias, mean square error and relative bias is carried out for the proposed proxy. Simulation results show that the new estimator exhibiting negligible bias appears to be more efficient than the unbiased estimator with high variance.
Journal: Applied Economics
Pages: 2259-2268
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237751
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237751
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Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2259-2268
Template-Type: ReDIF-Article 1.0
Author-Name: Xinpeng Xu
Author-X-Name-First: Xinpeng
Author-X-Name-Last: Xu
Author-Name: Jan P. Voon
Author-X-Name-First: Jan P.
Author-X-Name-Last: Voon
Author-Name: Yan Shang
Author-X-Name-First: Yan
Author-X-Name-Last: Shang
Title: Unbundling institutional determinants of multinational investments
Abstract:
Previous studies often examined how a broad-based institution affects foreign direct investment (FDI) flows across countries. However, analysis of differential impacts of two or more constituent institutions within a broad-based institution appears to be more useful for policy decision-making. There is a paucity of studies on how constituent institutions within a broad measure of institution affect FDI across countries. Our article constitutes the first attempt in bridging this gap. In this article, we examine the relative effects of property rights institution (PI) and contracting institution (CI) on investment flows. Our results show that PI is much more important than CI in determining the cross-border flows of FDI and affiliate sales. Moreover, PI is found to be more important for FDI than for affiliate sales, indicating that final goods are less of a concern for being expropriated by governments and powerful elites than capital goods. Through unbundling a broad-based institution and examining how the constituent institutions affect investments flows, our article provides practical location decisions for investments in FDI, mergers and acquisitions (M&A) and affiliate sales.
Journal: Applied Economics
Pages: 2269-2285
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237754
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237754
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Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2269-2285
Template-Type: ReDIF-Article 1.0
Author-Name: Ramzi Benkraiem
Author-X-Name-First: Ramzi
Author-X-Name-Last: Benkraiem
Author-Name: Mondher Bouattour
Author-X-Name-First: Mondher
Author-X-Name-Last: Bouattour
Author-Name: Anthony Miloudi
Author-X-Name-First: Anthony
Author-X-Name-Last: Miloudi
Author-Name: Ludovic Vigneron
Author-X-Name-First: Ludovic
Author-X-Name-Last: Vigneron
Title: Corporate leverage and the terms of employment: evidence from French small businesses before and during the global crisis
Abstract:
Despite the particular importance of corporate leverage and human capital for small businesses, little is surprisingly known about the relationship between these two factors for this category of firms. Accordingly, this article tries to fill this gap by investigating the relationship between leverage and human capital examined through the investment in employee-related expenditure. The analysis focuses on a sample of French listed small businesses before and during the recent global crisis. The empirical findings show that leverage serves as a monitoring mechanism of corporate managers prone to over or underinvest in employee-related expenditure to obtain private benefits. Due notably to the availability of debt, this monitoring is more effective before the crisis period, especially for low growth firms. Overall, these results provide support to the theory that leverage has a disciplining role. Simultaneously, they lead to moderate the strength of this role according to the global crisis. Thus, they should provide useful insights for academics, regulators, managers and credit institutions.
Journal: Applied Economics
Pages: 2286-2297
Issue: 23
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1237755
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1237755
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Handle: RePEc:taf:applec:v:49:y:2017:i:23:p:2286-2297
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim Idi
Author-X-Name-Last: Cheffou
Title: Toward a new deal for Saudi Arabia: oil or Islamic stock market investment?
Abstract:
Amid the ongoing national development programme of Saudi Arabia, Saudi Vision 2030, a large trade openness plan to reduce Saudi Arabia’s dependence on oil and to diversify its economy is announced. This study investigates whether or not the related diversification option through openness towards the Islamic stock market would benefit Saudi Arabia’s economy. To this end, we consider data on oil price and Islamic stock investment, evaluate their interactions through vector autoregressive modelling and estimate the impulse response functions. Further, we perform portfolio simulations and measure further diversification benefits. First, we find that the risk of the economy’s dependency on the crude oil industry is not rejected, given the recent strong deterioration of oil returns. Second, the portfolio simulations highlight that the consideration of investment in Islamic stock shares not only generates diversification benefits but also provides a portfolio with the highest returns and lowest financial risk, for which we compute the optimal composition. Third, the analysis of the impulse response functions shows that the investment in the Islamic stock market in Saudi Arabia implies positive effects on the oil industry, which is a priori favourable to the recent challenge of undertaking the national development programme, Saudi Vision 2030.
Journal: Applied Economics
Pages: 6355-6363
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486018
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486018
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Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6355-6363
Template-Type: ReDIF-Article 1.0
Author-Name: Jamel Saadaoui
Author-X-Name-First: Jamel
Author-X-Name-Last: Saadaoui
Title: Internal Devaluations and Equilibrium Exchange Rates: new evidences and perspectives for the EMU
Abstract:
From the onset of the euro crisis to the Brexit vote, we have witnessed impressive reductions of current account imbalances in peripheral countries of the euro area. These reductions can be the result of either a compression of internal demand or an improvement in external competitiveness. In this paper, we compute exchange rate misalignments within the euro area to assess whether peripheral countries have managed to improve their external competitiveness. After controlling for the reduction of business cycle synchronization within the EMU, we find that peripheral countries have managed to reduce their exchange rate misalignments thanks to internal devaluations. To some extent, these favourable evolutions reflect improvements in external competitiveness. Nevertheless, these gains could only be temporary if peripheral countries do not improve their non-price competitiveness, their trade structures and their international specializations in the long run.Abbreviations: EMU, European Monetary Union; FEER, Fundamental Equilibrium Exchange Rate; SMIM, Symmetric Matrix Inversion Method; BEER, Behavioural Equilibrium Exchange Rate; PPP, Purchasing Parity Power; OCI, Own Country Included; IMF, International Monetary Fund; OECD, Organisation for Economic Co-operation and Development; NIESR, National Institute of Economic and Social Research.
Journal: Applied Economics
Pages: 6364-6381
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486019
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486019
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Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6364-6381
Template-Type: ReDIF-Article 1.0
Author-Name: Marcelo Zeuli
Author-X-Name-First: Marcelo
Author-X-Name-Last: Zeuli
Author-Name: André Carvalhal
Author-X-Name-First: André
Author-X-Name-Last: Carvalhal
Title: Backtesting Basel III: evaluating the market risk of past crises through the current regulation
Abstract:
Are the recommendations from the Bank for International Settlements (BIS) effective to a broad set of financial crises? We submitted two of the main Basel III recommendations for market risk to a back test: the capital requirements and the Value at Risk (VaR) methodology that includes the BIS’s Stressed VaR. We tested the main Brazilian currency exchange (U.S. Dollar to Brazilian Reais) and currency exchange swaps contracts through volatility-based VaR methodologies in the period that comprises the so-called Brazilian confidence crisis, which occurred in the second half of 2002.While the Stressed VaR revealed inapplicable, due to historical data shortage, the capital requirements level appeared innocuous, due to the high levels of daily volatility – daily oscillation limits may have a significant role on crisis mitigation. To circumvent the lack of either historical information or optimal window for stress patterns, we suggest to calibrate the Stressed VaR or the recently announced Expected Shortfall with a historical VIX (Volatility Index, Chicago Board Options Exchange), working as a volatility scale. We suggest modelling with other densities, apart from the BIS recommended standard normal.
Journal: Applied Economics
Pages: 6382-6396
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486020
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486020
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Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6382-6396
Template-Type: ReDIF-Article 1.0
Author-Name: Attila Ceffer
Author-X-Name-First: Attila
Author-X-Name-Last: Ceffer
Author-Name: Norbert Fogarasi
Author-X-Name-First: Norbert
Author-X-Name-Last: Fogarasi
Author-Name: Janos Levendovszky
Author-X-Name-First: Janos
Author-X-Name-Last: Levendovszky
Title: Trading by estimating the quantized forward distribution
Abstract:
In this article, a novel algorithm is developed for electronic trading on financial time series. The new method uses quantization and volatility information together with feedforward neural networks for achieving high-frequency trading (HFT). The proposed procedures are based on estimating the Forward Conditional Probability Distribution (FCPD) of the quantized return values. From past samples, the conditional expected value can be learned, from which FCPD can be obtained by using a special encoding scheme. Based on this estimation, a trading signal is triggered if the probability of price change becomes significant as measured by a quadratic criterion. Due to the encoding scheme and quantization, the complexity of learning and estimation has been reduced for HFT. Extensive numerical analysis has been performed on financial time series and the new method has proven to be profitable on mid-prices. In order to beat the secondary effects, we focus on the most liquid assets, on which we managed to achieve positive profits.
Journal: Applied Economics
Pages: 6397-6405
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486021
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486021
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Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6397-6405
Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Dufrénot
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufrénot
Author-Name: Anne-Charlotte Paret
Author-X-Name-First: Anne-Charlotte
Author-X-Name-Last: Paret
Title: Sovereign debt in emerging market countries: not all of them are serial defaulters
Abstract:
Avoiding to assign emerging market countries a ‘typical’ behaviour, this article considers the heterogeneity across them and through time to predict their sovereign default episodes. Moreover, it focuses on the imbalance between defaulted debt and GDP. For the first time, we use a panel nonlinear regime-switching model whose explanatory factors have a different impact on sovereign default, depending on the regime the country belongs to. We mitigate some common views of the literature (in particular the ‘serial default’ theory) and identify countries deserving to be monitored carefully, because of a higher exposure to sovereign default risk.Abbreviation: CRAG : Credit Rating Assessment Group; EMBI: Emerging Market Bond Index; FSI: Financial Stress Index; GDP: Gross Domestic Product; GFC: Global Financial Cycle; GTD: Gonzalez, Teräsvirta, and V. Dijk; IMF: International Monetary Fund; LM: Lagrange Multiplier; PSTR: Panel Smooth Transition Regression; PTR: Panel Threshold Regression; STAR: Smooth Transition Auto Regressive model; US: United States; VIX: Volatility Index
Journal: Applied Economics
Pages: 6406-6443
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486022
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486022
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Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6406-6443
Template-Type: ReDIF-Article 1.0
Author-Name: Asem Alhomaidi
Author-X-Name-First: Asem
Author-X-Name-Last: Alhomaidi
Author-Name: M. Kabir Hassan
Author-X-Name-First: M. Kabir
Author-X-Name-Last: Hassan
Author-Name: Duygu Zirek
Author-X-Name-First: Duygu
Author-X-Name-Last: Zirek
Author-Name: Abdulrahman Alhassan
Author-X-Name-First: Abdulrahman
Author-X-Name-Last: Alhassan
Title: Does an Islamic label cause stock price comovements and commonality in liquidity?
Abstract:
In this article, we examine the effects of shared beliefs and the personal preferences of individual investors on their trading and investment decisions. We expect that the process of classifying stocks into Sharia-compliant (Islamic) and non-Sharia-compliant (conventional) has an effect on the investibility and acceptance of the stocks especially by unsophisticated or individual investors. The wider acceptance of Islamic stocks among individual investors promotes and facilitates the circulation of firm-specific information among certain groups of investors. Our results indicate that stock classification has an effect on stock price comovements through increased stock trading correlation among the groups of Islamic investors. The commonality in preferences among holders of Islamic stocks generates commonality in trading activity and in stock liquidity. We find that classifying a stock as an Islamic stock increases its price comovement with other Islamic stocks and also increases its commonality in liquidity.
Journal: Applied Economics
Pages: 6444-6457
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486023
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486023
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Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6444-6457
Template-Type: ReDIF-Article 1.0
Author-Name: Georges Prat
Author-X-Name-First: Georges
Author-X-Name-Last: Prat
Author-Name: Remzi Uctum
Author-X-Name-First: Remzi
Author-X-Name-Last: Uctum
Title: Do markets learn to rationally expect US interest rates? An anchoring approach
Abstract:
We propose an augmented and dynamic forecast anchoring model to examine whether a group of rational forecasters coexists with or emerges besides a group of forecasters employing heuristic rules. This model is consistent with the economically rational expectations theory. Using experts’ 3-month and 10-year Treasury bill rate survey expectations at short and long horizons, we find that aggregate expectations fail to exhibit a learning process towards rationality. While forecasters essentially anchor their judgements to heuristics, a small proportion of agents rationally forecast the short-term interest rate, possibly due to Federal Reserve’s transparency practice in the conduct of monetary policy and forward guidance at the zero lower bound.
Journal: Applied Economics
Pages: 6458-6480
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486024
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486024
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Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6458-6480
Template-Type: ReDIF-Article 1.0
Author-Name: Evangelos Salachas
Author-X-Name-First: Evangelos
Author-X-Name-Last: Salachas
Author-Name: Nikiforos T. Laopodis
Author-X-Name-First: Nikiforos T.
Author-X-Name-Last: Laopodis
Author-Name: Georgios P. Kouretas
Author-X-Name-First: Georgios P.
Author-X-Name-Last: Kouretas
Title: Assessing monetary policies in the Eurozone, U.S., U.K. and Japan: new evidence from the post-crisis period
Abstract:
The global financial crisis of 2007 changed the way central banks implement monetary policies. This article examines the transmission of both conventional and unconventional monetary policies for the Eurozone, the U.S., the U.K. and Japan. We additionally study the impact of quantitative easing on financial stability and real economic activity. Our results suggest that conventional monetary policy pass-through channels were distorted significantly in the post-crisis period. We further argue that quantitative easing reduced the long-term rates and averted a further downturn in economic activity. Specifically, the series of central banks quantitative easing contributed to the stimulation of economic activity and restored the traditional financial markets’ function.
Journal: Applied Economics
Pages: 6481-6500
Issue: 59
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1486026
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1486026
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Handle: RePEc:taf:applec:v:50:y:2018:i:59:p:6481-6500
Template-Type: ReDIF-Article 1.0
Author-Name: Tam Trinh
Author-X-Name-First: Tam
Author-X-Name-Last: Trinh
Author-Name: Xuan Nguyen
Author-X-Name-First: Xuan
Author-X-Name-Last: Nguyen
Author-Name: Pasquale Sgro
Author-X-Name-First: Pasquale
Author-X-Name-Last: Sgro
Title: Determinants of non-life insurance expenditure in developed and developing countries: an empirical investigation
Abstract:
The determinants of non-life insurance expenditure in a panel data set covering 36 developed countries and 31 developing countries for the period 2000–2011 are analysed. Results of our instrumental variable analysis indicate that economic freedom, income, bank development, urbanization, culture and law systems are the key drivers of the non-life insurance expenditure across countries. However, their impacts differ significantly between the groups of developed and developing countries, suggesting that the heterogeneity among countries in terms of the level of development plays an important role. The global financial crisis is also found to influence the direction of those effects, especially in developed countries. The article yields useful policy and economic implications for governments and multinational non-life insurance companies with regard to the development of the non-life insurance sector, an important engine for economic growth and prosperity.
Journal: Applied Economics
Pages: 5639-5653
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181834
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181834
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Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5639-5653
Template-Type: ReDIF-Article 1.0
Author-Name: Vadim Kaushanskiy
Author-X-Name-First: Vadim
Author-X-Name-Last: Kaushanskiy
Author-Name: Victor Lapshin
Author-X-Name-First: Victor
Author-X-Name-Last: Lapshin
Title: A nonparametric method for term structure fitting with automatic smoothing
Abstract:
We present a nonparametric method for fitting the term structure of interest rates from bond prices. Our method is a variant of the smoothing spline approach, but within our framework we are able to determine the smoothing coefficient automatically from data using the generalized cross-validation or maximum likelihood estimates. We present an effective numerical algorithm to simultaneously find the term structure and the optimal smoothing coefficient. Finally, we compare the proposed nonparametric fitting method with other parametric and nonparametric methods to find its superior performance. We find that existing term structure fitting methods perform well in liquid markets while illiquid markets present new challenges, which we address in this article.
Journal: Applied Economics
Pages: 5654-5666
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181835
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181835
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Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5654-5666
Template-Type: ReDIF-Article 1.0
Author-Name: Byung S. Min
Author-X-Name-First: Byung S.
Author-X-Name-Last: Min
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: How does leverage affect R&D intensity and how does R&D intensity impact on firm value in South Korea?
Abstract:
We examine how leverage affects corporate research and development (R&D) intensity, as well as examine the impact of R&D on firm value in South Korea, a country in which corporate-funded R&D intensity is one of the highest in the world. Among our main results, we find that growth opportunities have a positive effect on R&D intensity, while leverage has a negative effect on R&D intensity. When leverage is at an extremely high level, the relationship between growth opportunities and R&D intensity turns from positive to negative. Using instrumental variables, we find that R&D generates an increase in firm value.
Journal: Applied Economics
Pages: 5667-5675
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181836
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181836
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Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5667-5675
Template-Type: ReDIF-Article 1.0
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Hong Zhao
Author-X-Name-First: Hong
Author-X-Name-Last: Zhao
Author-Name: Mingming Zhou
Author-X-Name-First: Mingming
Author-X-Name-Last: Zhou
Title: The effects of foreign strategic investors on business models in China’s commercial banks: does ownership structure matter?
Abstract:
Introducing foreign strategic investors (FSIs) is a vital step in the ownership reforms of China’s banking industry. Using China’s data from 1995 to 2014, we employ propensity score matching and difference-in-differences approaches to investigate the effects of FSIs on the business models of Chinese banks, including income structure and funding structure. We find that FSIs significantly influence income structure. The bank’s non-interest income (NII) share significantly rises after introducing FSIs. The higher ownership shares of FSIs are associated with the higher NII share. And the NII share has been increased when FSIs assign directors or senior managers to Chinese banks. We also report that the effects of FSIs on income structure are weaker in state-owned banks than those in other banks, and ownership concentration weakens the links between FSIs and income structure. Finally, this article shows that FSIs have no significant influence on funding structure. These findings will be informative and relevant to both policymakers and practitioners.
Journal: Applied Economics
Pages: 5676-5698
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184373
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Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5676-5698
Template-Type: ReDIF-Article 1.0
Author-Name: Ricky Kanabar
Author-X-Name-First: Ricky
Author-X-Name-Last: Kanabar
Author-Name: Peter Simmons
Author-X-Name-First: Peter
Author-X-Name-Last: Simmons
Title: To defer or not defer? UK state pension and work decisions in a lifecycle model
Abstract:
The UK state pension (which depends only on age) includes an option to defer take up which yields either a subsequent lump sum or higher weekly pension. We analyse the joint decisions on pension deferral and intertemporal labour supply/participation in a lifecycle setting. We show that deferral is purely a financial decision, but the impact of deferral on work decisions depends on preferences, wage rates, non-labour income and initial wealth. To exactly characterize this, we use a quasilinear utility function and provide calibrated simulations. We also discuss the choice between a lump sum or increased weekly pension.
Journal: Applied Economics
Pages: 5699-5716
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184374
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Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5699-5716
Template-Type: ReDIF-Article 1.0
Author-Name: Karen Maguire
Author-X-Name-First: Karen
Author-X-Name-Last: Maguire
Title: What’s powering wind? The effect of the U.S. state renewable energy policies on wind capacity (1994–2012)
Abstract:
As of 2012, 29 states had enacted a Renewable Portfolio Standard (RPS), while 37 states had at least one utility offering Green Power Purchasing (GPP) to their customers. The goal of both policies is to promote the adoption of clean, renewable energy. This article examines the influence of these polices on wind capacity across the United States from 1994–2012, a period of significant expansion of the wind generation market. The analysis focuses on wind because as compared with other modern renewable energy sources, wind is the only renewable energy source to make significant inroads into the U.S. electricity generation market. My findings indicate that while there have been significant increases in commercial scale wind generation capacity, neither RPS nor GPP programmes had a significant influence on within state wind capacity additions.
Journal: Applied Economics
Pages: 5717-5730
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184375
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184375
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Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5717-5730
Template-Type: ReDIF-Article 1.0
Author-Name: Aram Balagyozyan
Author-X-Name-First: Aram
Author-X-Name-Last: Balagyozyan
Author-Name: Esin Cakan
Author-X-Name-First: Esin
Author-X-Name-Last: Cakan
Title: Did large institutional investors flock into the technology herd? An empirical investigation using a vector Markov-switching model
Abstract:
This article investigates whether large non-bank institutional investors herded during the dot-com bubble of the 1990s. We use the vector Markov-switching model of Hamilton and Lin (1996) to analyse the technology stockholdings of 115 large institutional investors from 1980 to 2012. By imposing different restrictions on the elements of the transition probability matrix, we are able to test for various lead/lag scenarios that might have existed between the technology stockholding of each investor and that of the residual market. We find that only 17.4% of the investors in our sample herded during the dot-com bubble. Thus, during the dot-com bubble, herding among large institutional investors was not an especially widespread phenomenon. Among those investors that herded, 80% herded during the run-up, 10% during the collapse and 10% during both phases of the dot-com bubble. About 23% of all investors in our sample exited from the technology sector before the bubble collapsed. These results seem to support Abreu and Brunnermeier’s (2003) theory of bubbles and crashes.
Journal: Applied Economics
Pages: 5731-5747
Issue: 58
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1184376
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1184376
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Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5731-5747
Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Dong Lee
Author-X-Name-First: Ki-Dong
Author-X-Name-Last: Lee
Author-Name: Seo-Hyeong Lee
Author-X-Name-First: Seo-Hyeong
Author-X-Name-Last: Lee
Author-Name: Jong-Il Choe
Author-X-Name-First: Jong-Il
Author-X-Name-Last: Choe
Title: State dependence, individual heterogeneity, and the choice of employment status: evidence from Korea
Abstract:
Focusing on the individual heterogeneity, this article examines the causes of an individual’s employment status choice and the extent of state dependence in the Korean labour market. We estimate a dynamic multinomial logit model using the panel data drawn from the first to fifteenth wave of the Korean Labour and Income Panel Study. The results suggest the presence of state dependence. Individual characteristics and growth background have a significant effect on the choice of employment status. Gender is still an important employment factor; males are more likely to be employed and this gender effect is highest for regular employment (RE). One’s educational attainment and age operate in opposite directions. That is, educational attainment (age) has a positive (negative) impact on the choice of a regular job and a negative (positive) impact on the choice of a non-regular job. Contrary to our expectations, a wealthy family background reduces the probability of individuals being wage workers, and raises the probability of them being unemployed. The barriers to RE are greater than for non-regular employment. These findings are of great importance for designing policies to effectively address unemployment and labour informality problems in Korea.
Journal: Applied Economics
Pages: 824-837
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1343447
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343447
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Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:824-837
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Castaldo
Author-X-Name-First: Angelo
Author-X-Name-Last: Castaldo
Author-Name: Alessandro Fiorini
Author-X-Name-First: Alessandro
Author-X-Name-Last: Fiorini
Author-Name: Bernardo Maggi
Author-X-Name-First: Bernardo
Author-X-Name-Last: Maggi
Title: Measuring (in a time of crisis) the impact of broadband connections on economic growth: an OECD panel analysis
Abstract:
Technological innovation has always been considered a major stimulus for economic growth. High-speed internet access via broadband infrastructure has undergone rapid development since the end of the 1990s, thanks to the deployment of both fixed and mobile technologies. The present study investigates the impact of fixed broadband diffusion as a technological determinant of economic growth on the basis of a panel of 23 OECD countries over 15 years (1996–2010). The time horizon chosen is suitable for verification of the causal effect on growth of the transition from traditional copper to partially fibre networks. Through implementation of a dynamic panel by using the generalized method of moments (GMM) combined with an instrumental variable (IV) two-stage approach, we found a positive correlation between broadband diffusion and economic growth, even after controlling for countries initial endowment of information and communication technologies (ICT) and for the years of economic crisis. Our main finding provides evidence, through a continuous time interpretation of our estimations, of a quantitatively relevant relationship between broadband diffusion and economic dynamics in the short, medium and long runs. Our findings may be useful to policy makers in that they permit forecasting of the benefits of further transition from broadband to ultra-wide broadband networks.
Journal: Applied Economics
Pages: 838-854
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1343448
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343448
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Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:838-854
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Bilson Darku
Author-X-Name-First: Alexander Bilson
Author-X-Name-Last: Darku
Author-Name: Richard Yeboah
Author-X-Name-First: Richard
Author-X-Name-Last: Yeboah
Title: Economic openness and income growth in developing countries: a regional comparative analysis
Abstract:
This article examines and compares the openness–growth relationship between the high-performing Asian economies (HPAEs) and the rest of the developing world (Sub-Saharan Africa-SSA, South East Asia-SEA and Latin America and Caribbean-LAC). We applied the SYS-GMM estimator to a dynamic standard endogenous growth model which relates economic openness to real per capita income growth. A few key findings emerged from this study. First, economic openness led to increase in real per capita GDP growth in HPAEs and SSA, but not in LAC and SEA. Second, openness to trade accelerated income convergence among countries in SSA, SEA, and HPAEs, however, whereas foreign direct investment inflows accelerated income convergence only in SSA, it rather de-accelerated income convergence in HPAEs. Thirdly, the HPAEs recorded higher positive effect of openness on real per capita GDP growth than any of the other developing regions because they created sufficient stock of human capital that enhanced their absorptive capacity of imported advanced technology. They also created a more stable macroeconomic environment which consolidated the income growth gains from openness. The results of this study highlight the importance of the implementation of policies that are complementary to economic openness in promoting economic growth in the developing world.
Journal: Applied Economics
Pages: 855-869
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1343449
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343449
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Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:855-869
Template-Type: ReDIF-Article 1.0
Author-Name: Timo Mitze
Author-X-Name-First: Timo
Author-X-Name-Last: Mitze
Author-Name: Torben Dall Schmidt
Author-X-Name-First: Torben Dall
Author-X-Name-Last: Schmidt
Author-Name: Daniel Rauhut
Author-X-Name-First: Daniel
Author-X-Name-Last: Rauhut
Author-Name: Aki Kangasharju
Author-X-Name-First: Aki
Author-X-Name-Last: Kangasharju
Title: Ageing shocks and short-run regional labour market dynamics in a spatial panel VAR approach
Abstract:
Using a flexible spatial panel VAR model for a small-scale labour market system, we investigate the dynamic interdependences between changes in the demographic structure and the labour market performance of a regional economy. With a particular focus on ageing shocks, we describe an increase in the share of elderly in regional population due to exogenous changes in the institutional context, such as pension reforms. The regional labour market implications of an ageing shock are then tested with regard to the effects on employment growth, unemployment and labour participation rate. Our results based on a sample of 71 Scandinavian regions point to negative regional labour market effects of an ageing shock implying a reduction in employment growth and a temporarily declining labour participation rate, while the unemployment rate increases. Importantly, spatial spillovers amplify these negative impacts through a marginalization of macro-regional labour markets. As a robustness check, we reverse the causal ordering and analyze the responses to a positive macroeconomic shock which initially increases employment growth. We find direct and spatially indirect adjustment patterns characterized by a reduction of the unemployment rate, an increase in the labour participation rate and a decrease in the share of elderly in the population.
Journal: Applied Economics
Pages: 870-890
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346360
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346360
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Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:870-890
Template-Type: ReDIF-Article 1.0
Author-Name: Iftekhar Robin
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Robin
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Title: Cost efficiency in Bangladesh banking: does financial reform matter?
Abstract:
This article estimates the cost efficiency of the commercial banks of Bangladesh in the context of financial reform. Employing the single-stage stochastic frontier analysis (SFA) model, the study uses a unique balanced panel data set comprising bank-level annual data from the dominant commercial banks in Bangladesh for the period 1983–2012. The results show that bank cost has fallen due to financial deregulation. Our results from the data envelopment analysis do not vary significantly that we obtained from the SFA. In addition, the presence of politically linked directors on the bank board has an adverse effect on efficiency. These findings suggest that further reforms aiming at removing all sorts of political influence should continue to ensure competitive environment in order to achieve cost efficiency in the financial sector of the country.
Journal: Applied Economics
Pages: 891-904
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346361
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346361
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Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:891-904
Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Yin
Author-X-Name-First: Jianhua
Author-X-Name-Last: Yin
Author-Name: Sen Wang
Author-X-Name-First: Sen
Author-X-Name-Last: Wang
Title: The effects of corporate environmental disclosure on environmental innovation from stakeholder perspectives
Abstract:
Based on legitimacy theory and resource dependence theory, using 111 listed companies among China’s typically high pollution-emitting listed corporations, research into the effects of environmental disclosure on environmental innovation is undertaken. From the perspective of stakeholders, we analyse the moderating effects of different proportions of institutional investor holdings and types of enterprises on the relationship between environmental disclosure and environmental innovation. The results indicate that corporate environmental disclosure has a positive role in promoting environmental innovation; the proportion of institutional investor holdings has a positive moderating effect between environmental disclosure and environmental innovation. However, there is no significant difference between state-owned enterprises and private enterprises in terms of the effect of the environmental disclosure on environmental innovation, which possibly arises because both types of enterprises make full use of their own advantages to instigate environmental innovation through environmental disclosure. The conclusions may help enterprise decision-makers implementing environmental innovation and government policy makers formulating scientific policies to promote the clean production in enterprises.
Journal: Applied Economics
Pages: 905-919
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346362
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346362
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Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:905-919
Template-Type: ReDIF-Article 1.0
Author-Name: Xingnan Jiang
Author-X-Name-First: Xingnan
Author-X-Name-Last: Jiang
Title: Operational risk and its impact on North American and British banks
Abstract:
This study examines the financial impact of operational risk and its loss announcements on the value of publicly traded banks in United States, UK and Canada. There are three main findings: (1) on average, the market reacts more negatively to a loss’s initial announcement than its settlement news; (2) operational loss events cause strong reputational damage to the announcing banks and (3) the market is particularly sensitive to the announcement of losses caused by internal fraud, of a large magnitude, resulted in the order of restitution, and that are the rulings of a regulatory investigation.
Journal: Applied Economics
Pages: 920-933
Issue: 8
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1346363
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346363
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Handle: RePEc:taf:applec:v:50:y:2018:i:8:p:920-933
Template-Type: ReDIF-Article 1.0
Author-Name: Steven B. Caudill
Author-X-Name-First: Steven B.
Author-X-Name-Last: Caudill
Author-Name: Shannon Hourican
Author-X-Name-First: Shannon
Author-X-Name-Last: Hourican
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Does college football impact the size of university applicant pools and the quality of entering students?
Abstract:
The role played by collegiate athletics in furthering the mission of institutions of higher education has been one of the more active research streams in the economics literature. Two areas of emphasis in this particular genre concern the relationship between athletics success and the size of a university’s applicant pool, and the relationship between athletics success and the quality of a university’s incoming class. This study extends both lines of research above by employing a unique panel data set consisting of 10 institutions that either added or eliminated college football between 1997 and 2015 in order to examine the impact of the presence of college football programme on both the size of university applicant pools and the quality of the students chosen for admission. Results from a panel data estimator presented here suggest that the size of their applicant pool shrinks the year following discontinuation of a college football programme. In the case of ACT scores, the results are similar, indicating that the ACT scores of incoming freshmen decrease after discontinuation of football.
Journal: Applied Economics
Pages: 1885-1890
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380289
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380289
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Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1885-1890
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Zeynel Abidin Ozdemir
Author-X-Name-First: Zeynel Abidin
Author-X-Name-Last: Ozdemir
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Serkan Gunes
Author-X-Name-First: Serkan
Author-X-Name-Last: Gunes
Title: Does inflation cause gold market price changes? evidence on the G7 countries from the tests of nonparametric quantile causality in mean and variance
Abstract:
This article utilizes the newly proposed nonparametric causality-in-quantiles test to examine the predictability of mean and variance of changes in gold prices based on inflation for G7 countries. The causality-in-quantiles approach permits us to test for not only causality in mean but also causality in variance. We start our investigation by utilizing tests for nonlinearity. These tests identify nonlinearity, showing that the linear Granger causality tests are subject to misspecification error. Unlike tests of misspecified linear models, our nonparametric causality-in-quantiles tests find causality in mean and variance from inflation to gold market price changes between the 0.20 quantile and the 0.70 quantile, implying that very low- and high-price changes in gold markets are not related to inflation. These changes should be related to other sources, such as financial shocks and exchange market shocks. We find support that gold serves as a hedge against inflation, but only in the mid-quantile ranges, i.e. quantiles from 0.20 to 0.70. Our results show that gold does not serve as a hedge against inflation during periods when gold market price changes are very low or very high, which are respectively quiet and highly volatile periods.
Journal: Applied Economics
Pages: 1891-1909
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380290
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380290
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Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1891-1909
Template-Type: ReDIF-Article 1.0
Author-Name: Vahagn Galstyan
Author-X-Name-First: Vahagn
Author-X-Name-Last: Galstyan
Title: LIML estimation of import demand and export supply elasticities
Abstract:
I apply limited-information maximum likelihood (LIML) to estimate import demand and export supply elasticities for a range of eurozone countries. The results highlight inconsistencies in the parameters estimated by LIML relative to an estimator that is robust to heteroskedasticity. The nature of the structural equations reveals complications generated by the limiting behavior of the parameters that can be replicated in finite samples. The results of simulations underscore improvements in parameter estimates in a three-dimensional panel, suggesting that the problem of limiting behaviour can be overcome in larger dataset/panels.
Journal: Applied Economics
Pages: 1910-1918
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380291
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380291
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Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1910-1918
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew G Interis
Author-X-Name-First: Matthew G
Author-X-Name-Last: Interis
Author-Name: Jon Rezek
Author-X-Name-First: Jon
Author-X-Name-Last: Rezek
Author-Name: Kristen Bloom
Author-X-Name-First: Kristen
Author-X-Name-Last: Bloom
Author-Name: Annika Campbell
Author-X-Name-First: Annika
Author-X-Name-Last: Campbell
Title: Assessing the value of short-term study abroad programmes to students
Abstract:
For many universities, students participating in short-term faculty-led programmes make up a large portion of the total study abroad population. In this article, we report the results of a unique choice experiment in which 1255 students were asked about their personal characteristics and their preferences for study abroad programme attributes. Using a random parameters logistic regression model, we find that students attitudes towards risk, their experience with international travel and their beliefs about whether study abroad would help them professionally were major determinants of whether a student expressed interest in studying abroad. We also estimate students’ willingness to pay for various programme attributes, including destination, programme duration, course type and the number of experiential learning activities. We find that the highest value programmes give students credit towards their major rather than towards the university core or as an elective and that they are 3–4 weeks in length rather than 2 or 6 weeks. Also, while students value more experiential learning activities per week, each additional trip adds less value with no additional value beyond four activities. Results are useful for practitioners interested in maximizing student participation while effectively managing study abroad budgets.
Journal: Applied Economics
Pages: 1919-1933
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1380292
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1380292
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Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1919-1933
Template-Type: ReDIF-Article 1.0
Author-Name: Xiangnan Meng
Author-X-Name-First: Xiangnan
Author-X-Name-Last: Meng
Author-Name: Tony Cavoli
Author-X-Name-First: Tony
Author-X-Name-Last: Cavoli
Author-Name: Xin Deng
Author-X-Name-First: Xin
Author-X-Name-Last: Deng
Title: Determinants of income diversification: evidence from Chinese banks
Abstract:
This article presents an analysis of the determinants of Chinese commercial banks’ income diversification decisions. Using a panel dataset comprising 88 Chinese domestic banks from 2003 to 2010, we find that bank diversification reflects a variety of managerial abilities: insolvency risks, cost, capital position, asset scale and ownership structure. A larger ratio of banking assets to gross domestic product and lower interest spread lead to a higher level of diversification. Moreover, national banks and regional banks have different strategic responses to the macroeconomic, and indeed, regulatory environment. Resisting shocks from the banking sector and the macro economy, and supplementing liquidity shortages from intermediation business seem to be the driving forces of national banks to operate in non-banking sectors.
Journal: Applied Economics
Pages: 1934-1951
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1383594
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1383594
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Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1934-1951
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Title: Financial development, industrialization, the role of institutions and government: a comparative analysis between India and China
Abstract:
This research is the first comparative attempt incorporating the role of economic, demographic, sectoral contribution, government and trade in explaining financial development for India and China. Using time-series estimations, we establish that institutional quality and government size impede financial development, whereas urbanization, industrialization and service sector growth help in financial development for both countries. Trade openness also enhances Indian financial development but hinders Chinese financial development. We suggest that the policy advisers should not underestimate the role of urbanization, industrialization and service sector growth in implementing financial development. Finally, we find that the institutions and governments will play a key role for both economies in enhancing finance and growth.
Journal: Applied Economics
Pages: 1952-1977
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1383595
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1383595
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Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1952-1977
Template-Type: ReDIF-Article 1.0
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Zhizhong Li
Author-X-Name-First: Zhizhong
Author-X-Name-Last: Li
Author-Name: Rongrong Li
Author-X-Name-First: Rongrong
Author-X-Name-Last: Li
Title: Automate the identification of technical patterns: a K-nearest-neighbour model approach
Abstract:
To explore profitable patterns in historical stock prices, ordinarily a promising pattern is selected by rule of thumb, and then its performance is verified by comparing the conditional return of the pattern with the unconditional benchmark return. We adopt an alternative philosophy: without any pre-selected pattern, the proposed method explores the entire graphic space to automate the identification of technical patterns. Derived from the K-nearest-neighbour (KNN) forecast, our method calculates the graphic similarity of patterns by the distance of the price vectors, and then classifies patterns according to the graphic similarity, and finally identifies patterns which contain predictive powers of the future market movement. KNN provides an excellent tool for probing the entire graphic space formed by price patterns to obtain an overall perspective of the effectiveness of technical patterns. Not only the well-known patterns but also the unnoticed and potentially informative patterns can be probed. To evaluate the performance, our method is compared with classic KNN forecast and technical trading rules. Results indicate that the stock market is relatively efficient and technical analysis is still effective to explore excess returns.
Journal: Applied Economics
Pages: 1978-1991
Issue: 17
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1383596
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1383596
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Handle: RePEc:taf:applec:v:50:y:2018:i:17:p:1978-1991
Template-Type: ReDIF-Article 1.0
Author-Name: Hyunseok Kim
Author-X-Name-First: Hyunseok
Author-X-Name-Last: Kim
Author-Name: Ju Hyun Kim
Author-X-Name-First: Ju Hyun
Author-X-Name-Last: Kim
Title: Voluntary zero-dividend paying firms: characteristics and performance
Abstract:
We investigate the characteristics of ‘voluntary zero dividend paying’ firms and their subsequent performance. We define NDR_HP (no dividends or repurchases, with high profitability) firms as those with profits above the industry median and yet pay out zero dividends (including share repurchases). Signalling, agency, residual dividend, and life cycle theories explain firm characteristics and dividend payouts, to which we add the novel variables CEO overconfidence and market competition. We discover that growth opportunity, capital expenditure, and CEO overconfidence are positively related to NDR_HP. In addition, we find that the NDR_HP group outperforms all other groups in terms of future performance.
Journal: Applied Economics
Pages: 5420-5446
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610713
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610713
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Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5420-5446
Template-Type: ReDIF-Article 1.0
Author-Name: Apurba Shee
Author-X-Name-First: Apurba
Author-X-Name-Last: Shee
Author-Name: Calum G. Turvey
Author-X-Name-First: Calum G.
Author-X-Name-Last: Turvey
Author-Name: Liangzhi You
Author-X-Name-First: Liangzhi
Author-X-Name-Last: You
Title: Design and rating of risk-contingent credit for balancing business and financial risks for Kenyan farmers
Abstract:
Weather-related agricultural risks and limited access to credit are serious impediments to agricultural productivity and growth in developing countries. This paper describes a novel insurance linked credit model piloted in Kenya, where insurance markets are effectively absent, and farmers do not borrow because of the risk of losing their collateral. One of the challenges in deigning bundled credit products, in the absence of traded securities, is the actuarial pricing and risk rating of the insurance and the loan product. We develop a rainfall linked risk-contingent credit that transfers drought risk related perils from borrower to lender via insurance mechanism that provide a balance between business and credit risks for smallholder farmers. We describe the methodology used to design and rating of a risk-contingent structured operating agricultural credit instrument using CHIRPS rainfall data from 1981–2016 in Kenya. We illustrate the use of Monte Carlo methods to risk modelling that can be integrated within the general insurance and credit rating framework. The innovative design and methodology presented in this paper are as important as the product delivery mechanism and will be of interest to specialists in development economics and agricultural finance.
Journal: Applied Economics
Pages: 5447-5465
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613502
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613502
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Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5447-5465
Template-Type: ReDIF-Article 1.0
Author-Name: Guojin Chen
Author-X-Name-First: Guojin
Author-X-Name-Last: Chen
Author-Name: Jie Ding
Author-X-Name-First: Jie
Author-X-Name-Last: Ding
Author-Name: Xiangqin Zhao
Author-X-Name-First: Xiangqin
Author-X-Name-Last: Zhao
Title: A lottery-preference-based explanation of realized kurtosis puzzle in Chinese stock market
Abstract:
High kurtosis corresponds to fat tails on both sides and under risk-aversion assumption investors’ dislike of left-tail loss outweighs their preference for right-tail gain. Therefore, high kurtosis characteristic of stock should predict high expected returns. However, the high-frequency-data-based empirical results on Chinese stock market are just the opposite, which we refer to as the ‘realized kurtosis puzzle’. Using the double sorts and firm-level cross-sectional regression methods, we further demonstrate investors’ preference for lottery-like stocks or lottery preference is key to solve the puzzle. Our further empirical research verifies stocks with higher retail investors’ shareholding proportion and unavailable for short show stronger ‘realized kurtosis puzzle’. In addition, the puzzle is particularly significant in high lottery preference periods while less apparent in low lottery preference times.
Journal: Applied Economics
Pages: 5466-5481
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613510
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613510
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Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5466-5481
Template-Type: ReDIF-Article 1.0
Author-Name: Olushina Olawale Awe
Author-X-Name-First: Olushina Olawale
Author-X-Name-Last: Awe
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: Time series analysis of economic growth rate series in Nigeria: structural breaks, non-linearities and reasons behind the recent recession
Abstract:
This article deals with the modelling of growth rate time series in Nigeria with a view of detecting its statistical properties, structural breaks and non-linearities. We employ both fractional integration and structural break time series techniques in modelling the annual growth rate series of the Nigerian GDP growth rate for about 55 years. The data span between 1960 and 2017. The results show that Nigerian growth rate is unstable with non-linearities and long-range dependence structures. We also investigate what might explain these features and conclude that erratic political institutions, associated with poor economic management and insecurity in Nigeria, among others, in the decades after independence are the root causes of non-linearities observed, which have also led to the subsequent recent economic recession in Nigeria.
Journal: Applied Economics
Pages: 5482-5489
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613513
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613513
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Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5482-5489
Template-Type: ReDIF-Article 1.0
Author-Name: Chung Baek
Author-X-Name-First: Chung
Author-X-Name-Last: Baek
Title: How are gold returns related to stock or bond returns in the U.S. market? Evidence from the past 10-year gold market
Abstract:
Although the gold market over the past decade has been soaring relative to its prior history, there have been few studies on the relationship between the gold market and other major financial markets based on the past decade of data. To re-investigate how the gold market interacts with the stock market and the bond market, we re-visit economic and financial characteristics of gold using the past 10-year data in terms of co-integration, causality, predictive power, and extreme returns. We find that while gold returns are not co-integrated with stock returns and bond returns, gold returns have a unidirectional causality with both of them. Also, we discover that gold returns have some predictive power on subsequent short-term stock returns. Under extreme market scenarios, it turns out that gold returns tend to deteriorate more simultaneously with bond returns than stock returns. This means that gold can better serve as a safe haven for stock in a relative sense during temporary market downturns.
Journal: Applied Economics
Pages: 5490-5497
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1616062
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616062
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Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5490-5497
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Van Vliet
Author-X-Name-First: Ben
Author-X-Name-Last: Van Vliet
Author-Name: Apostolos Xanthopoulos
Author-X-Name-First: Apostolos
Author-X-Name-Last: Xanthopoulos
Title: Iso-risk: an analysis of risk-taking in fixed income markets
Abstract:
We test the hypothesis that portfolio managers trade-off variance and kurtosis in asset returns. We find empirical evidence that supports the iso-risk hypothesis using fixed income mutual fund data. Managers appear to systematically ‘swing for the fences’ when the probability of outperformance is low. This resolves previous enigmas of preference reversals and adheres to both Prospect Theory and tournament effects. The methodology developed enables reconciliation of active return metrics and managers’ total return behaviour. As the data set includes the great recession, we provide an economic interpretation of the results in light of the trade-off hypothesis.
Journal: Applied Economics
Pages: 5498-5514
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1616063
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616063
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Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5498-5514
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Díaz-Dapena
Author-X-Name-First: Alberto
Author-X-Name-Last: Díaz-Dapena
Author-Name: Esteban Fernández-Vázquez
Author-X-Name-First: Esteban
Author-X-Name-Last: Fernández-Vázquez
Author-Name: Rafael Garduño-Rivera
Author-X-Name-First: Rafael
Author-X-Name-Last: Garduño-Rivera
Author-Name: Fernando Rubiera-Morollon
Author-X-Name-First: Fernando
Author-X-Name-Last: Rubiera-Morollon
Title: Economic integration and regional convergence: effects of NAFTA on local convergence in Mexico, 1980–2008
Abstract:
Continental integration processes can alter traditional development axes. Paelinck and Polèse´s work in 1999 explains that in the case of Mexico there is a tension between the U.S. border and the rest of the country: Mexico´s integration in the NAFTA should have reduced the U.S. border attraction, extending the growth to territories located between this border and Mexico City. To test this hypothesis, we propose a spatial conditional β-convergence model that uses as regressors both the distances to the U.S. border and to Mexico City, together with other control variables. This model is applied to the period from 1980 to 2008 using GVA at the municipality level. Working with municipal-level data allows to observe convergence patterns across space and identify the effects of location. The time-span studied distinguishes between before and after NAFTA. Estimates based on Mundlak´s approach were obtained for time-invariant regressors. Results show that during the pre-NAFTA period there was a general process of convergence, but it is mainly explained by the faster growth of municipalities located near to the U.S. border. However, post-NAFTA, convergence in municipalities disappeared and the effect of distance to the U.S. border reversed its sign, as predicted in Paelinck and Polèse´s model.
Journal: Applied Economics
Pages: 5515-5527
Issue: 50
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1616064
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616064
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Handle: RePEc:taf:applec:v:51:y:2019:i:50:p:5515-5527
Template-Type: ReDIF-Article 1.0
Author-Name: Dao Thi Hong Nguyen
Author-X-Name-First: Dao Thi Hong
Author-X-Name-Last: Nguyen
Author-Name: Sizhong Sun
Author-X-Name-First: Sizhong
Author-X-Name-Last: Sun
Author-Name: A. B. M. Rabiul Alam Beg
Author-X-Name-First: A. B. M. Rabiul Alam
Author-X-Name-Last: Beg
Title: How does FDI affect domestic firms’ wages? theory and evidence from Vietnam
Abstract:
This paper explores the role of inward foreign direct investment (FDI) as a determinant of domestic firms’ wages, namely wage spillovers. We first construct a theoretical model to demonstrate that the presence of FDI firms affects domestic firms’ expected average wages via productivity spillovers and a cut-off capability. We then estimate FDI-induced wage spillovers by employing IV-GMM estimator with a five-year panel dataset of a growing service industry in Vietnam. Despite FDI firms on average pay 2.25 times that of domestic firms, they put a downward pressure on domestic firms’ wages. A one percent increase in FDI presence causes domestic firms to cut average wages by 2.03 percent. The estimations also find that firm-specific features are attributable to significant differences in their wages as well as FDI-linked wage spillovers.
Journal: Applied Economics
Pages: 5311-5327
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610717
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610717
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Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5311-5327
Template-Type: ReDIF-Article 1.0
Author-Name: K. K. G. Wong
Author-X-Name-First: K. K. G.
Author-X-Name-Last: Wong
Author-Name: Lin Zhu
Author-X-Name-First: Lin
Author-X-Name-Last: Zhu
Author-Name: Vinh Q. T. Dang
Author-X-Name-First: Vinh Q. T.
Author-X-Name-Last: Dang
Title: Effects of income distribution in an inverse demand system: evidence from Chinese household survey data
Abstract:
This study provides an empirical analysis of the impact of changes in income distribution on food demand in China using data from China Health and Nutrition Survey. A new parametric form of an inverse demand system is introduced and estimated taking into account reported zero consumption. This new form is a natural extension of recent works that accommodate the incorporation of income distribution into the system and imposition of global regularity conditions in estimation. Our results generally indicate that the distribution of households across income groups is important in determining food demand in China and that a movement towards a more equal income distribution in China will stimulate the demand for vegetable, fruit, fish and eggs.
Journal: Applied Economics
Pages: 5328-5344
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610720
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610720
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Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5328-5344
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Behr
Author-X-Name-First: Andreas
Author-X-Name-Last: Behr
Author-Name: Christoph Schiwy
Author-X-Name-First: Christoph
Author-X-Name-Last: Schiwy
Author-Name: Jurij Weinblat
Author-X-Name-First: Jurij
Author-X-Name-Last: Weinblat
Title: Investment, default propensity score and cash flow sensitivity in six EU member states: evidence based on firm-level panel data
Abstract:
Using a panel data set covering six European countries and $$119700$$119700 firms ($$582153$$582153 observations) over the period $$2008$$2008–$$2013$$2013, we analyse the cash flow sensitivity of investment spending. As most of the firms are not listed at stock exchanges, a balance sheet-based approximation on Tobin’s Q is used to indicate investment opportunities. We analyse internal and external liquidity constraints and their effect on investment decisions. In the literature, external constraints are most often indicated by simple accounting-based items/ratios. As the adequacy of the a priori indicator, reflecting the external constraints, is crucial, we contribute in proposing a more sophisticated approach. We estimate propensities to default using adapted random forests. In our descriptive analysis, we find strong evidence for the u-shape of the investment curve. However, after controlling for investment opportunities we find no increased cash flow sensitivity of investment, neither for a priori externally nor for internally constrained firms. Hence, our results hint for the absence of liquidity constraints. We attribute these towards the rather expansionary monetary policy since the financial crisis.
Journal: Applied Economics
Pages: 5345-5368
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613499
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613499
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Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5345-5368
Template-Type: ReDIF-Article 1.0
Author-Name: Dorothée Charlier
Author-X-Name-First: Dorothée
Author-X-Name-Last: Charlier
Author-Name: Berangère Legendre
Author-X-Name-First: Berangère
Author-X-Name-Last: Legendre
Author-Name: Anna Risch
Author-X-Name-First: Anna
Author-X-Name-Last: Risch
Title: Fuel poverty in residential housing: providing financial support versus combatting substandard housing
Abstract:
Between 50 and 125 million Europeans are unable to afford the energy needed for adequate heating, cooking, light and use of appliances in the home. Tackling fuel poverty has thus become a public policy challenge. In this article, we assess the effectiveness of social energy subsidies and social housing to reduce fuel poverty. The literature reports that rising fuel prices, low incomes and energy-inefficient housing are the main causes of fuel poverty. Existing public policies focus mainly on price- and income-based measures to reduce fuel poverty, such as social energy subsidies. This type of policy is palliative as it does not permit to sustainably eradicate fuel poverty. Other policies aim to encourage renovation in order to improve energy efficiency. Those policies are curative as they sustainably reduce one cause of fuel poverty: energy inefficiency. In this article, we focus on another public policy to tackle fuel poverty: social housing. We believe that this policy could be preventive, as the literature reports the better energy efficiency of social housing. We use matching methods and find that living in social housing decreases fuel poverty by 5.4% to 9.1%. On the contrary, social energy subsidies have no effect on fuel poverty.
Journal: Applied Economics
Pages: 5369-5387
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613501
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613501
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Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5369-5387
Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Alina Maydybura
Author-X-Name-First: Alina
Author-X-Name-Last: Maydybura
Title: Idiosyncratic volatility and the cross-section of anomaly returns: is risk your Ally?
Abstract:
Due to arbitrage risk asymmetries, the relationship between idiosyncratic risk and expected returns is positive (negative) among overpriced (underpriced) stocks. We offer a new active anomaly-selection strategy that capitalizes on this effect. To this end, we consider 11 equity anomalies in the U.S. market for years 1963–2016. Buying (selling) long (short) legs of the anomaly portfolios with the highest idiosyncratic volatility produces monthly abnormal returns ranging from 0.97% to 1.14% per month, outperforming a naive benchmark that equally weights all the anomalies by 45–70%. The effect cannot be subsumed by any other established anomaly-return predictor, such as momentum or seasonality. The results are robust to many considerations, including different numbers of anomalies in the portfolios, subperiod analysis, as well as estimation of idiosyncratic risk from the alternative models and throughout different periods.
Journal: Applied Economics
Pages: 5388-5397
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613505
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613505
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Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5388-5397
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Li
Author-X-Name-First: Yu
Author-X-Name-Last: Li
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Author-Name: Zuoping Xiao
Author-X-Name-First: Zuoping
Author-X-Name-Last: Xiao
Title: Economic policy uncertainty and the Chinese stock market volatility: new evidence
Abstract:
This study investigates the impacts of the economic policy uncertainty (EPU) indexes of China and the G7 countries on Chinese stock market volatility and further constructs a new diffusion index based on these indexes using principal component analysis (PCA) to achieve enhanced predictive ability. The in-sample results indicate that the EPU indexes of China and some of the G7 countries show a significantly negative impact on future volatility. Moreover, our constructed diffusion index also has a significantly negative impact. Furthermore, the out-of-sample results show that this diffusion index exhibits a significantly higher forecast accuracy than the EPU itself and combination forecasts. Finally, various robustness checks are consistent with our main conclusions. Overall, we construct a new and useful indicator that can substantially increase forecast accuracy with respect to the Chinese stock market.
Journal: Applied Economics
Pages: 5398-5410
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613507
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613507
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Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5398-5410
Template-Type: ReDIF-Article 1.0
Author-Name: Yan Zheng
Author-X-Name-First: Yan
Author-X-Name-Last: Zheng
Author-Name: Xiaoming Liao
Author-X-Name-First: Xiaoming
Author-X-Name-Last: Liao
Title: Corruption governance and its dynamic stability based on a three-party evolutionary game with the government, the public, and public officials
Abstract:
The current state of corruption in China is still worrisome. Corruption among public officials depends not only on their subjective will, but also on the success rate of government investigations and public whistleblowing. Based on the evolutionary game theory, this study constructs an evolutionary game model with the government, the people, and public officials and solves the dynamic model. The authors also provide a numerical simulation of the proposed model to confirm theoretical predictions. The results reveal that when the government’s success rate reaches a certain threshold, public officials will trend to a strategy of no bribery, and at this threshold, raising the cost of bribing public officials can quickly prevent them from corruption. At the equilibrium, the public will trend toward a strategy of no whistleblowing. The findings of this study are of great significance to the current anti-corruption debate in China.
Journal: Applied Economics
Pages: 5411-5419
Issue: 49
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613508
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613508
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Handle: RePEc:taf:applec:v:51:y:2019:i:49:p:5411-5419
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed S. Alanazi
Author-X-Name-First: Ahmed S.
Author-X-Name-Last: Alanazi
Author-Name: Benjamin Liu
Author-X-Name-First: Benjamin
Author-X-Name-Last: Liu
Author-Name: Haitham A. Al-Zoubi
Author-X-Name-First: Haitham A.
Author-X-Name-Last: Al-Zoubi
Title: IPO underpricing in supply and demand framework: evidence from a market of retailers
Abstract:
How do supply, demand and allocation of shares on the underpricing of initial public offerings (IPOs) affect the shape and steepness of supply and demand curves? Theoretical studies posit that subscribers ‘flip’ in IPOs immediately on the listing day to capture instantaneous profits. Consistent with this hypothesis, we find that both curves of the market listing day of IPOs are significantly negatively sloped with the supply curve being much steeper and above the demand curve. The excess demand that occurs during the subscription period becomes excess supply once the shares start to float on the listing day. Overall, we establish a strong empirical link between the underpricing puzzle and the aftermarket interaction of IPOs.
Journal: Applied Economics
Pages: 5835-5849
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186794
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186794
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5835-5849
Template-Type: ReDIF-Article 1.0
Author-Name: Witsanu Attavanich
Author-X-Name-First: Witsanu
Author-X-Name-Last: Attavanich
Author-Name: Brian J. Schilling
Author-X-Name-First: Brian J.
Author-X-Name-Last: Schilling
Author-Name: Kevin P. Sullivan
Author-X-Name-First: Kevin P.
Author-X-Name-Last: Sullivan
Title: Measuring the effects of preservation on farm profits in a continuous treatment setting
Abstract:
Despite billions of dollars of public appropriations to state purchase of development rights (PDR) programmes, there has been limited evaluation of the effects of these investments on the economic performance of preserved farms. This article estimates dose-response functions to evaluate the effects of enrolment in New Jersey’s PDR programme on farm profitability. The generalized propensity score method in a continuous treatment setting is used to address selection bias arising from voluntary programme participation. Treatment effects are measured across treatment levels to determine whether farm profitability is affected differently across levels of programme participation. Our findings reveal that, relative to unpreserved farms, profit per acre tends to increase along lower treatment levels. The profit per acre of preserved farms in the 1–40% treatment range is, on average, $407 higher than that of unpreserved farms in the full sample. Positive profit differentials averaging between $317 and $472 per acre are also observed in the 1–20%, 1–40% and 1–60% treatment quintiles in the farming occupation sample. We do not observe statistically significant profitability differentials when treatment effects are averaged across all positive treatment values.
Journal: Applied Economics
Pages: 5850-5865
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186795
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186795
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5850-5865
Template-Type: ReDIF-Article 1.0
Author-Name: Tomas Havranek
Author-X-Name-First: Tomas
Author-X-Name-Last: Havranek
Author-Name: Zuzana Irsova
Author-X-Name-First: Zuzana
Author-X-Name-Last: Irsova
Author-Name: Jiri Schwarz
Author-X-Name-First: Jiri
Author-X-Name-Last: Schwarz
Title: Dynamic elasticities of tax revenue: evidence from the Czech Republic
Abstract:
Tax revenue elasticities with respect to tax bases are key parameters for the modeling of public finances. Yet the existing studies estimating these elasticities for emerging countries disregard the effects of tax reforms on tax revenue, which renders their estimates inconsistent. We introduce a framework for estimating both short- and long-run tax revenue elasticities using quarterly data adjusted for the effects of reforms. Our results suggest that the long-run elasticities in the Czech Republic are 1.4 for wage tax, 0.9 for value added tax, 1.7 for profit tax and 1 for social security contributions. The adjustment process for value added tax and social security contributions is fast, but for the remaining two categories, it is important to distinguish between the short- and long-run elasticities: the initial response of revenue to changes in the bases is weak. In the case of wage tax it takes half a year for the elasticity to surpass unity.
Journal: Applied Economics
Pages: 5866-5881
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186796
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186796
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5866-5881
Template-Type: ReDIF-Article 1.0
Author-Name: Xinhua Gu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Gu
Author-Name: Yang Zhang
Author-X-Name-First: Yang
Author-X-Name-Last: Zhang
Author-Name: Xiaolin Qian
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Qian
Author-Name: Haizhen Guo
Author-X-Name-First: Haizhen
Author-X-Name-Last: Guo
Title: The suspension of borrowing: an implicit penalty for loan default under imperfect information
Abstract:
A credit seeker may be suspended from borrowing for a period of time due to a previous default. Such suspension is widely used in bank lending through credit check. Our work analyses the effects of suspension on the investment choice of borrowers under uncertainty and on the lending policy of banks facing asymmetric information. We show that suspension should be tightened at low loan rates, but loosened otherwise, to improve the repayment performance of borrowers. We also show that although credit rationing may not be completely removed due to imperfect information, the excess demand for credit or transitive waiting in the market can actually be attenuated by such efficient use of suspension. Our theoretical predictions are consistent with observed cyclical patterns of changes in lendingrates and suspension severity.
Journal: Applied Economics
Pages: 5882-5896
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186797
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186797
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5882-5896
Template-Type: ReDIF-Article 1.0
Author-Name: Akash Issar
Author-X-Name-First: Akash
Author-X-Name-Last: Issar
Author-Name: Poornima Varma
Author-X-Name-First: Poornima
Author-X-Name-Last: Varma
Title: Are Indian rice exporters able to price discriminate? Empirical evidence for basmati and non-basmati rice
Abstract:
The role of exchange rate fluctuations on the pricing behaviour of Indian rice exporters in their major destination markets is examined using the pricing-to-market (PTM) model. The analysis was undertaken in a context where India has emerged as a leading exporter of rice in the world market. The study distinguishes between basmati and non-basmati rice in the analysis as the destination markets differ across these two varieties. One of the key contributions of this study is that it undertakes an analysis under 3 exchange rate models, they are: nominal, real and commodity-specific exchange rates. The results from our analysis indicated the presence of non-competitive pricing behaviour of India’s rice exporters in majority of destination markets due to both the market-specific characteristics as well as exchange rate-induced effects. The amplification of exchange rate effects was more prominent in commodity-specific exchange rate model whereas local currency stabilization was more prominent under nominal and real exchange rate models. Furthermore, the analysis showed that the commodity-specific exchange rate better predicts the PTM behaviour of rice exporters.
Journal: Applied Economics
Pages: 5897-5908
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186798
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186798
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5897-5908
Template-Type: ReDIF-Article 1.0
Author-Name: Fida Karam
Author-X-Name-First: Fida
Author-X-Name-Last: Karam
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: How did wars dampen trade in the MENA region?
Abstract:
The article investigates the impact of wars on trade in the Middle East and North African region. Using an augmented gravity model that controls for the endogeneity problem in our estimation, we introduce a war variable and distinguish between different types of conflicts. The results show that wars have a significantly negative impact on exports, imports and trade. Civil conflicts hinder exports, imports and trade significantly. The disaggregated version of the gravity model shows that non-state conflicts have a detrimental effect on bilateral trade flows in manufacturing, and that none of the conflicts do affect trade in services. We also find that, on average, a conflict is equivalent to a tariff of 5% of the value of trade.
Journal: Applied Economics
Pages: 5909-5930
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1186799
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1186799
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5909-5930
Template-Type: ReDIF-Article 1.0
Author-Name: Reed Olsen
Author-X-Name-First: Reed
Author-X-Name-Last: Olsen
Author-Name: Hui-Kuan Tseng
Author-X-Name-First: Hui-Kuan
Author-X-Name-Last: Tseng
Title: The U.S. health care expenditure: evidence from 2001 to 2009
Abstract:
This study utilizes state-level data from 2001 to 2009 to estimate the impact of the 2007 financial crisis upon health care expenditures. Higher death rates are consistently found to have a positive and statistically significant impact on health expenditures. While mental health and COPD are not generally found to impact expenditures, increases in the percentage of the population diagnosed with cholesterol and obesity tend to increase health expenditures. Increases in health expenditures slowed considerably after the financial crisis. Even though recessions (high unemployment rates) are generally found to have a positive impact on health expenditures, the post-financial crisis time period is estimated to have much lower health expenditures than in other time periods. Our results can be used to give insight into the conditions under which the slower rate of increase in health expenditures can be expected to increase. More research will be needed to be able to more completely explore not only the reasons for these changes in health expenditures but also whether they are likely to continue into the future.
Journal: Applied Economics
Pages: 5931-5940
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1189505
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1189505
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:5931-5940
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: i-i
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1196037
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1196037
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Applied Economics
Pages: ebi-ebi
Issue: 60
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1245814
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1245814
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Handle: RePEc:taf:applec:v:48:y:2016:i:60:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Lei Xu
Author-X-Name-First: Lei
Author-X-Name-Last: Xu
Author-Name: Ron P. McIver
Author-X-Name-First: Ron P.
Author-X-Name-Last: McIver
Title: How does political connection affect firm financial distress and resolution in China?
Abstract:
We examine the impact of political connections on firm performance, financial distress, and its resolution in China, a country where government influence over stock markets has been demonstrated to be considerable. Our findings suggest that over 1999 to 2015, although political connections had limited impact on the emergence of financial distress, such connections assisted distressed firms in gaining increments to debt financing and contributed to a higher likelihood of recovery. This indicates that Chinese authorities follow market economy principles, and only intervene in firms’ operations after they fall into financial distress. In addition, central and local government political connections have different impacts on distress recovery. We conduct additional analyses on differences in distress outcomes for various ownership (State-owned enterprises, SOEs, and non–SOEs) and sample sub-periods (1999–2007 and 2008–2015). Our results are robust to potential endogeneity issues and to alternative measures of financial distress.
Journal: Applied Economics
Pages: 2770-2792
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558358
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558358
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Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2770-2792
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Damette
Author-X-Name-First: Olivier
Author-X-Name-Last: Damette
Author-Name: Antonio C. Marques
Author-X-Name-First: Antonio C.
Author-X-Name-Last: Marques
Title: Renewable energy drivers: a panel cointegration approach
Abstract:
The expected gains from RES deployment to the reduction of carbon dioxide emissions (CO2) and the cut-off of external dependence of electricity sources could be important. However, it is crucial to understand the determinants of RES growth to help policymakers drawing effective energy polices, involving a commitment of both citizens and governments. In this paper, we use novel panel econometric tools (taking into account structural breaks and cross-section dependence) and find evidence of nonstationary issues and cointegration issues between renewable energy production and its drivers (CO2 emissions, GDP per capita, energy use and dependency). The results thus reveal that non-stationary issues should be attended, otherwise they could be biased. Using suitable estimators (DOLS, FMOLS) with two different data sets and different proxies and taking common factors into account by MG estimates, we find that there is no environmental concerns effect explaining the growth of renewables in European countries. However, national revenues, energy consumption (demand effect) and energy dependency have a positive impact on renewables deployment. Considering these results, economic assistance (subsidies) might be a mean to increase further the renewables deployment in EU countries and education about renewables deployment is needed.
Journal: Applied Economics
Pages: 2793-2806
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558359
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558359
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Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2793-2806
Template-Type: ReDIF-Article 1.0
Author-Name: Yılmaz Toktaş
Author-X-Name-First: Yılmaz
Author-X-Name-Last: Toktaş
Author-Name: Ali Altiner
Author-X-Name-First: Ali
Author-X-Name-Last: Altiner
Author-Name: Eda Bozkurt
Author-X-Name-First: Eda
Author-X-Name-Last: Bozkurt
Title: The relationship between Turkey’s foreign debt and economic growth: an asymmetric causality analysis
Abstract:
Tackling foreign debt that arises as a result of limited and ineffective use of resources is an item that remains on the agenda particularly for developing countries. In this study, we examine the foreign debt debates to date in terms of economic growth and using the time series for the period 2003Q1 to 2017Q1. We used unit root tests to determine the maximum integration degree of series, and we conducted causality analysis. We found a causality relationship between net foreign debt stock and economic growth in causality analyses performed for Turkey. The empirical results of this study indicate that there is a causality relationship, including both positive and negative aspects, between net foreign debt stock and economic growth. The results of our testing showed a significant causal relationship between the variables.
Journal: Applied Economics
Pages: 2807-2817
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558360
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558360
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Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2807-2817
Template-Type: ReDIF-Article 1.0
Author-Name: Brad R. Humphreys
Author-X-Name-First: Brad R.
Author-X-Name-Last: Humphreys
Author-Name: Adam Nowak
Author-X-Name-First: Adam
Author-X-Name-Last: Nowak
Author-Name: Yang Zhou
Author-X-Name-First: Yang
Author-X-Name-Last: Zhou
Title: Superstition and real estate prices: transaction-level evidence from the US housing market
Abstract:
We investigate the impact of superstition on prices paid by Chinese-American home buyers. Chinese consider 8 lucky and 4 unlucky. Lacking explicit buyer ethnicity identifiers, we develop a binomial name classifier, a machine learning approach applicable to any data set containing names, that allows for falsification tests using other ethnic groups, and mitigates ambiguity from the transliteration of Chinese characters into the Latin alphabet. Chinese buyers pay 1–2% premiums for addresses including an 8 and 1% discounts for addresses including a 4. These results are unrelated to unobserved property quality; no premium exists when Chinese sell to non-Chinese. The persistence of superstitions reflects the extent of cultural assimilation.
Journal: Applied Economics
Pages: 2818-2841
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558361
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558361
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Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2818-2841
Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: Challenges in the Portuguese textile and clothing industry: a fight for survival
Abstract:
The Portuguese textile and clothing industry thrived after 1960, when Portugal joined the European Free Trade Association, and it has been an important industry in Portugal in terms of value added, employment, and exports. Nevertheless, the industry has experienced significant challenges with the final integration of the apparel and textile industry into GATT on 1 January 2005, as well as the admission of relatively low-wage Bulgaria and Romania into the European Union in 2007. This paper describes recent trends in the industry between 1995 and 2016, including a substantial decrease in output after 2005 and recovery in recent years. In addition, a translog cost function is used to examine the existence of economies of scale, the relationships among inputs, and the effects of the 2005 GATT entry on the industry’s costs. The findings include strong evidence of economies of scale, consistent with the many small and mid-sized enterprises in the Portuguese textile and clothing industry. The results are also consistent with capital and labour being complementary inputs, while other input pairs are substitutes. The entry into GATT may have had a negative impact on cost, though the evidence for that effect is weak.
Journal: Applied Economics
Pages: 2842-2854
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558362
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558362
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Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2842-2854
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoli L. Etienne
Author-X-Name-First: Xiaoli L.
Author-X-Name-Last: Etienne
Author-Name: Giancarlo Ferrara
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Ferrara
Author-Name: Douglas Mugabe
Author-X-Name-First: Douglas
Author-X-Name-Last: Mugabe
Title: How efficient is maize production among smallholder farmers in Zimbabwe? A comparison of semiparametric and parametric frontier efficiency analyses
Abstract:
The controversial Fast Track Land Reform Programme in Zimbabwe that redistributes commercially-owned farmland to smallholder households has caused concerns about the efficiency of agricultural production in the country. In this paper, we estimate the efficiency of resource use among smallholder farmers in Zimbabwe when producing maize, the staple crop in the country. Using both a semiparametric model and a fully parametric stochastic frontier model, we find significant production shortfalls for smallholder maize production. While labor, capital, and land all significantly affect the total output, the estimated mean efficiency score for farms with less than 10 hectares of land (A1) appears to be under 0.75, and for the entire sample (A1 and A2) it ranges between 0.595 and 0.772. There clearly exists a great potential for maize farmers to improve the technical efficiency and increase the total output. Gender and age of the household head, access to extension services, and activities of other crops significantly affect the technical efficiency of smallholder maize production in Zimbabwe. We also find that all farms operate under increasing returns to scale and that the technical efficiency score tends to increase with the level of output.
Journal: Applied Economics
Pages: 2855-2871
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558363
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558363
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Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2855-2871
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: Topi Huhta-Halkola
Author-X-Name-First: Topi
Author-X-Name-Last: Huhta-Halkola
Title: Combining value and momentum: evidence from the Nordic equity market
Abstract:
This is the first article that explores the recently proposed average ranking approach for the value and momentum strategy in the Nordic equity market offering an exceptional experimental environment. Our results indicate that in the Nordic stock markets, the value anomaly offered excess returns in the 1993–2017 sample period only when small stocks were a part of the portfolio, whereas the momentum effect is strong and significant, irrespective of size. Interestingly, our findings also indicate that the negative correlation between value and momentum seems to be driven by growth stocks: Winner stocks that are value stocks generated 1.66% per month on average, whereas winner stocks that are growth stocks exhibit virtually the same average payoff. On the other hand, the spread between value and growth stocks that are loser stocks is on average 0.97% per month.
Journal: Applied Economics
Pages: 2872-2884
Issue: 26
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1558364
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1558364
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Handle: RePEc:taf:applec:v:51:y:2019:i:26:p:2872-2884
Template-Type: ReDIF-Article 1.0
Author-Name: Pavitra Paul
Author-X-Name-First: Pavitra
Author-X-Name-Last: Paul
Author-Name: Claudia Berlin
Author-X-Name-First: Claudia
Author-X-Name-Last: Berlin
Author-Name: Maud Maessen
Author-X-Name-First: Maud
Author-X-Name-Last: Maessen
Author-Name: Hannu Valtonen
Author-X-Name-First: Hannu
Author-X-Name-Last: Valtonen
Title: A comparison of regret-based and utility-based discrete choice modelling – an empirical illustration with hospital bed choice
Abstract:
There is some concern that the unobserved preference heterogeneity in random utility maximization theory-based discrete choice experiment modelling is an important source of error variability. The randomness in utility is often interpreted as interpersonal preference heterogeneity but it can also be intrapersonal random variation in preferences. We compare utility maximization and regret minimization-based choice models’ sensitivity to individual heterogeneity, examine differences between two consecrated models and validate with empirical illustrations. We use frequency of category (public, semi-private, and private) of bed chosen from Swiss cross-sectional datasets (2007–2012) to compare two approaches – utility maximization and regret minimization by applying multinomial logit (MNL) models in regard to the variances in utility (regret) function, goodness-of-fit and predicted marginal effects (pseudo-elasticity) of additional payment. We find parameters with the same sign and estimates with almost same order of magnitude in both the approaches. The statistical significance of attribute effects is consistent in all variants of utility -based MNL models while effects of different attributes are significant only in heteroskedastic extreme value (HEV) variant of regret-based MNL models. This empirical illustration suggests that HEV variant of regret-based models perform better in capturing attribute effects in choice behaviour.
Journal: Applied Economics
Pages: 4295-4305
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444260
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444260
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Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4295-4305
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Catela Nunes
Author-X-Name-First: Luis Catela
Author-X-Name-Last: Nunes
Author-Name: Ana Balcão Reis
Author-X-Name-First: Ana
Author-X-Name-Last: Balcão Reis
Author-Name: Carmo Seabra
Author-X-Name-First: Carmo
Author-X-Name-Last: Seabra
Title: Is retention beneficial to low-achieving students? Evidence from Portugal
Abstract:
The role of retention as an educational tool to overcome under-achievement is a hotly debated issue, especially given that the results in the literature are not consensual. The Portuguese case is particularly well suited to study this issue: all students must take standardized national exams at specific grades. Moreover, the available dataset tracks the performance of students over time. Therefore, we are able to measure the impact of students’ retention on their subsequent academic performance since we can control for each student’s initial level of ability at the moment of retention. We use a propensity score matching approach, in which retained and promoted 4th grade students are matched according to their socioeconomic characteristics and the scores obtained in national exams. To address potentially remaining endogeneity biases, we also use the culture of retention at school level as an instrumental variable. The results suggest that in some situations retentions may have on average a positive impact on future achievement. However, in the cases where statistically significant impacts are found, the estimated magnitudes are relatively small. Our results are relevant for countries with high retention rates that are considering alternative educational policies to promote students’ achievement.
Journal: Applied Economics
Pages: 4306-4317
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444261
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444261
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Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4306-4317
Template-Type: ReDIF-Article 1.0
Author-Name: Yongjae Lee
Author-X-Name-First: Yongjae
Author-X-Name-Last: Lee
Author-Name: Do-Gyun Kwon
Author-X-Name-First: Do-Gyun
Author-X-Name-Last: Kwon
Author-Name: Woo Chang Kim
Author-X-Name-First: Woo Chang
Author-X-Name-Last: Kim
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Title: An alternative approach for portfolio performance evaluation: enabling fund evaluation relative to peer group via Malkiel’s monkey
Abstract:
We propose an implementable portfolio performance evaluation procedure that compares a portfolio with respect to the portfolios constructed by an infinite number of Malkiel’s blindfolded monkeys, or equivalently the whole enumeration of all possible portfolios. We argue that this approach exhibits two main advantages. First, it does not require any benchmark portfolios because a portfolio is being compared to an infinite number of portfolios. Second, it is market condition invariant. Since the market conditions are already reflected in the portfolio performances of an infinite blindfolded monkeys, our measure of portfolio performances is invariant to volatile market conditions.
Journal: Applied Economics
Pages: 4318-4327
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444263
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444263
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Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4318-4327
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: The impact of ethnic diversity on microenterprise start-ups
Abstract:
Until recently, factors determining the decisions made by microfinance institutions (MFIs) to extend loans to business start-ups had not been explored. Recent evidence shows that MFI performance with regard to funds issued for small business start-ups depends on MFI-level characteristics such as profit orientation. We argue that these decisions do not only depend on MFI-specific practices or characteristics, but also on the role ethnic diversity plays. Using data on microfinance lending activities for business start-ups, we examine the impact of ethnic diversity on microenterprise start-ups. Results show that ethnic diversity negatively affects the provision of financial capital for business start-up. Furthermore, results also suggest a negative association between ethnic diversity and the share of female borrowers recorded by MFIs. We examine social networks and outreach as potential channels through which ethnic diversity affects business start-ups.
Journal: Applied Economics
Pages: 4328-4342
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444264
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444264
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Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4328-4342
Template-Type: ReDIF-Article 1.0
Author-Name: Lila J. Truett
Author-X-Name-First: Lila J.
Author-X-Name-Last: Truett
Author-Name: Dale B. Truett
Author-X-Name-First: Dale B.
Author-X-Name-Last: Truett
Title: A requiem for the Australian motor vehicle industry
Abstract:
The last automobiles manufactured in Australia rolled off the assembly line in the fall of 2017. This article looks at some of the factors that have impacted the industry since 1968 and led to its demise, including a high value of the Australian dollar in recent years, strategic decisions on the part of parent companies and reductions in governmental support and tariff protection. We estimate a cost function for the industry with inputs of domestic capital and labour and insourced intermediate goods as well as imported intermediate goods. The findings include that the remaining firms are operating in an output range of strongly statistically significant economies of scale, and that all of the input pairs are substitutes except for statistically significant complementary relationships between capital and domestic intermediate goods and labour and foreign intermediate goods. Unexpected results are that an increase in output per assembly plant appears to have a positive effect on total cost, while an increase in the effective tariff and an increase in the number of models appears to have a negative effect. One explanation for these robust but unexpected findings may be that total profit contribution is a part of total cost, and, therefore, factors that increase total profit contribution will also increase total cost.
Journal: Applied Economics
Pages: 4343-4359
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1444265
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1444265
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Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4343-4359
Template-Type: ReDIF-Article 1.0
Author-Name: Ørjan Mydland
Author-X-Name-First: Ørjan
Author-X-Name-Last: Mydland
Author-Name: Erik Haugom
Author-X-Name-First: Erik
Author-X-Name-Last: Haugom
Author-Name: Gudbrand Lien
Author-X-Name-First: Gudbrand
Author-X-Name-Last: Lien
Title: Economies of scale in Norwegian electricity distribution: a quantile regression approach
Abstract:
In this article, we investigate scale economies in Norwegian electricity distribution companies using a quantile regression approach. To the best of our knowledge, this is the first attempt to apply this estimation technique when analysing scale economies. We estimate the cost elasticities of the two output components: network length and number of customers, to calculate returns to scale. Our results show large potential of scale economies, particularly for the smallest companies. We also find that returns to scale is increasing over time. These findings have important implications for policymakers when they are deciding the structure of the industry in the future.
Journal: Applied Economics
Pages: 4360-4372
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1450481
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450481
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Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4360-4372
Template-Type: ReDIF-Article 1.0
Author-Name: Lorna Katusiime
Author-X-Name-First: Lorna
Author-X-Name-Last: Katusiime
Author-Name: Frank W. Agbola
Author-X-Name-First: Frank W.
Author-X-Name-Last: Agbola
Title: Modelling the impact of central bank intervention on exchange rate volatility under inflation targeting
Abstract:
This article empirically investigates the effect of central bank’s foreign exchange interventions on the level and volatility of the Uganda shilling/US dollar exchange rate (UGX/USD) under an inflation-targeting regime. Utilizing daily data spanning the period 1 September 2005, to 31 December 2015, we estimate a foreign exchange intervention model within a GARCH theoretic framework. Empirical results indicate that foreign exchange interventions have had mixed impact on the volatility of the exchange rate. We find that inflation targeting is capable of curbing temporary exchange rate shocks. Empirical results indicate that while order flow is capable of reducing exchange rate volatility, an increase in the operating target rate, the 7-day interbank rate tends to exacerbate exchange rate volatility. Our empirical results are robust to alternative model specifications. We argue that inflation targeting is an effective monetary policy tool for curbing exchange rate volatility.
Journal: Applied Economics
Pages: 4373-4386
Issue: 40
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1450482
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450482
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Handle: RePEc:taf:applec:v:50:y:2018:i:40:p:4373-4386
Template-Type: ReDIF-Article 1.0
Author-Name: Phuc Van Phan
Author-X-Name-First: Phuc Van
Author-X-Name-Last: Phan
Author-Name: Martin O’brien
Author-X-Name-First: Martin
Author-X-Name-Last: O’brien
Author-Name: Silvia Mendolia
Author-X-Name-First: Silvia
Author-X-Name-Last: Mendolia
Author-Name: Alfredo Paloyo
Author-X-Name-First: Alfredo
Author-X-Name-Last: Paloyo
Title: National pro-poor spending programmes and their effect on income inequality and poverty: Evidence from Vietnam
Abstract:
This article examines the causal effects of the national (pro-poor) targeted programmes (NTPs) on both poverty incidence and inequality in Vietnam over the period 2002–2010. While the links between NTPs and poverty alleviation and income inequality have previously been analysed independently, this study is the first to offer a comprehensive analysis of NTPs expenditure on poverty and inequality simultaneously. Applying the system generalized method of moments estimator to a panel of Vietnamese regional data, we are unable to establish that NTPs have significantly mitigated poverty incidence. However, we estimate that NTPs have significantly increased inequality. We offer possible explanations why the NTPs have resulted in these unintended outcomes and discuss potential policies which can reduce both poverty and inequality.
Journal: Applied Economics
Pages: 5579-5590
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313957
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313957
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Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5579-5590
Template-Type: ReDIF-Article 1.0
Author-Name: Kai-yin Woo
Author-X-Name-First: Kai-yin
Author-X-Name-Last: Woo
Author-Name: Shu-kam Lee
Author-X-Name-First: Shu-kam
Author-X-Name-Last: Lee
Author-Name: Paul Shum
Author-X-Name-First: Paul
Author-X-Name-Last: Shum
Title: Analysis of threshold cointegration with asymmetric adjustments in the Hong Kong grocery industry
Abstract:
High market concentration in the Hong Kong grocery industry has been prevalent over many years with the domination of a few large supermarket chains. However, no research has been conducted on the price dynamics between the supermarket and non-supermarket sectors to investigate whether the non-supermarket sector can impose competitive discipline on the dominating supermarket chains. We argue that standard cointegration tests cannot allow for transaction costs and distinguish whether the price co-movement is attributable to price competition or collusion. Our study therefore fills this research gap by adopting the threshold cointegration tests in a three-regime threshold vector error-correction model to account for the asymmetric price adjustment dynamics between supermarket and non-supermarket sectors of Hong Kong and evaluate the market power of the supermarket sectors in the presence of transaction costs. Our results favour the presence of cointegration between the supermarket and non-supermarket price indices with asymmetric adjustment dynamics. We interpret the results of statistically significant downward price adjustments in the outer-band regimes as the evidence of mutual price competition. Nevertheless, the supermarket sector has stronger market power than the non-supermarket sector, and therefore can sustain higher price level without inducing substantial competition pressures inside the neutral band.
Journal: Applied Economics
Pages: 5591-5600
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313959
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313959
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Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5591-5600
Template-Type: ReDIF-Article 1.0
Author-Name: Jian Xu
Author-X-Name-First: Jian
Author-X-Name-Last: Xu
Author-Name: Jae Woo Sim
Author-X-Name-First: Jae Woo
Author-X-Name-Last: Sim
Title: Are costs really sticky and biased? Evidence from manufacturing listed companies in China
Abstract:
Recent studies on cost behaviour have proved that cost increase caused by business expansion is larger than cost decrease caused by business downsizing. This cost stickiness behaviour contradicts the traditional theoretic assumption that cost level and business size change in a linear way. This article investigates the existence or non-existence of cost stickiness using a sample of China’s manufacturing listed companies during the period 2010–2014. First, our findings show that cost stickiness is a pervasive phenomenon and overestimated in the manufacturing industry. Second, we find that cost stickiness varies greatly across industries and in different regions. Finally, we find that cost stickiness is affected by the economic growth. Specifically, cost stickiness increases with the macroeconomic growth. Our results from China’s manufacturing listed companies provide evidence on asymmetric cost behaviour and contain important implications for both cost accounting research and financial accounting research.
Journal: Applied Economics
Pages: 5601-5613
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1316823
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316823
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Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5601-5613
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner
Author-X-Name-First: Kurt A.
Author-X-Name-Last: Hafner
Author-Name: Bernardí Cabrer Borrás
Author-X-Name-First: Bernardí
Author-X-Name-Last: Cabrer Borrás
Title: Technology spillover effects within Spanish communities
Abstract:
The article uses panel data for the period 1990–2010 to estimate technology spillover effects on 17 Spanish communities. Accounting for nonstationarity and cointegration, we use the dynamic OLS estimator to estimate the impact of domestic and non-domestic R&D capital stock on labour productivity of Spanish communities, taking into account trade-, migration- and foreign direct investment (FDI)-related technology diffusion channels. We find significant trade-related spillover effects within Spanish communities and from EU countries. On average, an increase in the non-domestic R&D stock of 1% increases their labour productivity between 0.02% and 0.12% if related to bilateral trade pattern. Moreover, migration within Spanish communities has a negative impact ranging between −0.07% and −0.16% on labour productivity as the impact of inward migration is dominated by outward migration. There is no robust impact from FDI inflows of OECD countries in general or EU countries in particular. Finally, the domestic R&D stock, physical capital and human capital are shown to be significant drivers for labour productivity in Spain no matter if non-domestic (local or foreign) spillover effects are trade-, migration- or FDI-related.
Journal: Applied Economics
Pages: 5614-5626
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1316824
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1316824
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Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5614-5626
Template-Type: ReDIF-Article 1.0
Author-Name: Taoufik Bouraoui
Author-X-Name-First: Taoufik
Author-X-Name-Last: Bouraoui
Author-Name: Helmi Hammami
Author-X-Name-First: Helmi
Author-X-Name-Last: Hammami
Title: Does political instability affect exchange rates in Arab Spring countries?
Abstract:
This article investigates the dynamic relationship between political instability and exchange rates in five Arab Spring countries over the period 1992Q1–2016Q4. We include macroeconomic fundamentals to identify the transmission channels through which political instability may affect exchange rates. Based on VAR and ARDL models, our results report that political instability is associated with a significant drop in the value of domestic currencies of these countries. Economic growth is found to be the key mechanism channel. We find also that the dependence between variables is more emphasized in the short run than in the long run.
Journal: Applied Economics
Pages: 5627-5637
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1319561
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319561
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Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5627-5637
Template-Type: ReDIF-Article 1.0
Author-Name: Hyuk Chung
Author-X-Name-First: Hyuk
Author-X-Name-Last: Chung
Title: R&D investment, cash holdings and the financial crisis: evidence from Korean corporate data
Abstract:
This article examines the real effects of the financial crisis in 2008 on corporate R&D investment by analyzing firm-level panel data from 2005 to 2011 obtained from KIS-VALUE, a Korean corporate finance database. I estimate a dynamic panel model of R&D investment that includes an after-crisis dummy to reflect the effects of the external finance supply shock after the financial crisis, an interaction term of the dummy and cash holdings to measure the marginal effect of cash holdings after the crisis, investment opportunities (sales and the q ratio) and financial positions as the debt-equity ratio. The estimation implies a negative yet relatively small impact of the credit supply shock from the financial crisis on R&D investment and the mitigation of the negative impacts by cash holdings after the onset of the financial crisis, whereas the data show decreasing R&D investment and sales for the whole period. Based on the data and the estimation, I find that firms were able to lessen the pressure from diminishing market demand before the crisis using external finance, but they had to use internal financial sources after the crisis smooth R&D investment.
Journal: Applied Economics
Pages: 5638-5650
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1319564
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1319564
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Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5638-5650
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Andor
Author-X-Name-First: Mark
Author-X-Name-Last: Andor
Author-Name: Christopher Parmeter
Author-X-Name-First: Christopher
Author-X-Name-Last: Parmeter
Title: Pseudolikelihood estimation of the stochastic frontier model
Abstract:
Stochastic frontier analysis is a popular tool to assess firm performance. Almost universally it has been applied using maximum likelihood (ML) estimation. An alternative approach, pseudolikelihood (PL) estimation, which decouples estimation of the error component structure and the production frontier, has been adopted in both the non-parametric and panel data settings. To date, no formal comparison has yet to be conducted comparing these methods in a standard, parametric cross-sectional framework. We produce a comparison of these two competing methods using Monte Carlo simulations. Our results indicate that PL estimation enjoys almost identical performance to ML estimation across a range of scenarios and performance metrics, and for certain metrics, outperforms ML estimation when the distribution of inefficiency is incorrectly specified.
Journal: Applied Economics
Pages: 5651-5661
Issue: 55
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1324611
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324611
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Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5651-5661
Template-Type: ReDIF-Article 1.0
Author-Name: Xu Wei
Author-X-Name-First: Xu
Author-X-Name-Last: Wei
Title: How does the diversity of investors’ beliefs affect stock price informativeness?
Abstract:
A growing number of studies have investigated the role of stock prices in aggregating private information and guiding resource reallocation. However, this article may be the first attempt to study how the diversity of beliefs affects stock price informativeness. The framework of the noisy rational expectations model shows that stock informativeness is determined by both the precision and use of private information in trading. If private beliefs about the value are highly diverse, the aggregate average opinion revealed in a stock’s price will be more accurate and, thus, more informative. As the price becomes more informative, however, individual investors will rely less on their private information. When this occurs, less private information will be absorbed in price, which, in turn, reduces price informativeness. Our model shows that the relationship between belief diversity and price informativeness is U-shaped in equilibrium.
Journal: Applied Economics
Pages: 515-520
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1200187
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200187
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Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:515-520
Template-Type: ReDIF-Article 1.0
Author-Name: Petra Maresova
Author-X-Name-First: Petra
Author-X-Name-Last: Maresova
Author-Name: Vladimir Sobeslav
Author-X-Name-First: Vladimir
Author-X-Name-Last: Sobeslav
Author-Name: Ondrej Krejcar
Author-X-Name-First: Ondrej
Author-X-Name-Last: Krejcar
Title: Cost–benefit analysis – evaluation model of cloud computing deployment for use in companies
Abstract:
The use of cloud computing services appears to offer significant cost advantages. The most frequently mentioned advantages include investment and operating costs saving, high elasticity of services as well as increased flexibility of certain business processes. On the other hand, the adoption of cloud computing in enterprise environments is non-trivial. Understanding the organizational benefits and drawbacks is far from straightforward. The adoption of cloud computing results in a considerable amount of organizational change that will affect employees. The aim of this contribution is to conduct and describe the evaluation model of cloud computing that would be applicable in business practice for evaluating the effectiveness of such investments. The target users of this model are primarily people in companies with decision-making power in the investment field. The appropriate starting point based on the multi-criteria evaluation was the cost–benefit analysis (CBA) approach for cloud computing (CC). A multi-method approach (systematic literature review, analysis of real cloud computing services, expert interview, case study) was applied in order to develop and evaluate the formal model. We found that our model fits the practical requirements and supports decision-making in cloud computing.
Journal: Applied Economics
Pages: 521-533
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1200188
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1200188
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Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:521-533
Template-Type: ReDIF-Article 1.0
Author-Name: Hasan A. Faruq
Author-X-Name-First: Hasan A.
Author-X-Name-Last: Faruq
Title: Corruption, product complexity and African exporters
Abstract:
Several studies have shown that African manufacturers perform poorly, especially in comparison to their counterparts from other developing countries. We build on these studies by (a) examining the decision to stop exporting among African manufacturers and (b) investigating whether these decisions can be linked to institutional dimensions (such as corruption). Consistent with previous studies, we observe that a significant fraction of African firms stop exporting every year. Using product complexity as a measure of an industry’s ‘sensitivity’ to corruption, we find that firms in more ‘corruption-sensitive’ industries are more likely to stop exporting if there is an increase in overall corruption in the exporting country. Firm characteristics (such as size and productivity) also seem to influence the decision to stop exporting. Our finding about the relationship between corruption and the decision to stop exporting supports the conventional wisdom that corruption is detrimental to economic performance.
Journal: Applied Economics
Pages: 534-546
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203058
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203058
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Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:534-546
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Law
Author-X-Name-First: Philip
Author-X-Name-Last: Law
Title: A cross-cultural study of and auditor independence in two economies: evidence from China and the United States
Abstract:
This study examines the impact of guanxi on auditor independence in China and the U.S. Using panel data from 2012–2015 surveys, fixed-effects regression models are used to analyse survey data with observations drawn from a total of 1076 Big 4 and 1044 non-Big 4 auditor-years for Chinese auditors, and 1168 Big 4 and 1140 non-Big 4 auditor-years for the U.S. auditors. The results indicate that ‘guanxi with clients’ has a negative influence on perceptions of auditor independence for Chinese auditors, but not for the U.S. auditors. According to our findings, both groups agree that imposing regulations/code has a positive influence on perceptions of auditor independence. Gender has no influence on the perceived independence of either group. After controlling for social desirability bias, our results remain robust. Sensitivity analysis further increases the robustness of the findings. Our results provide empirical support for public interest theory and pose implications for Western multinational companies contemplating doing business in the Chinese economy. This investigation is particularly relevant in the wake of the rise of China as a global power. Regulators should consider the implications of this study when setting auditing guidelines and codes of ethics.
Journal: Applied Economics
Pages: 547-572
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203059
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203059
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Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:547-572
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Melser
Author-X-Name-First: Daniel
Author-X-Name-Last: Melser
Author-Name: Iqbal A. Syed
Author-X-Name-First: Iqbal A.
Author-X-Name-Last: Syed
Title: The product life cycle and sample representativity bias in price indexes
Abstract:
Official price indexes are usually calculated using matched samples of products. If products exhibit systematic price trends at different points in their life cycle then matched sample methods may introduce bias if the life cycle movement in the sample does not adequately reflect that in the population. This article explores the extent of these life cycle pricing effects and then examines the bias it can introduce in measured inflation. A large US supermarket scanner data set for six cities and six products over 12 years is used. Using hedonic methods we find that the life cycle component of price change is important across a range of products and cities. To explore the bias introduced by these movements, we use simulations that construct indexes with different sample update frequency. For indexes that are never completely resampled, we find an annual absolute bias of 0.88 and 0.59 percentage points depending upon whether we use the actual prices or prices imputed from our hedonic model. This compares with absolute biases of 0.34 and 0.10 percentage points for the corresponding cases for samples, which are re-selected annually. Thus our results provide strong support for more frequently updating index samples.
Journal: Applied Economics
Pages: 573-586
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203060
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203060
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Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:573-586
Template-Type: ReDIF-Article 1.0
Author-Name: R. Giuliano
Author-X-Name-First: R.
Author-X-Name-Last: Giuliano
Author-Name: B. Mahy
Author-X-Name-First: B.
Author-X-Name-Last: Mahy
Author-Name: F. Rycx
Author-X-Name-First: F.
Author-X-Name-Last: Rycx
Author-Name: G. Vermeylen
Author-X-Name-First: G.
Author-X-Name-Last: Vermeylen
Title: Does corporate social responsibility make over-educated workers more productive?
Abstract:
This article provides first evidence on whether corporate social responsibility (CSR) influences the productivity effects of over-education. By relying on detailed Belgian-linked employer–employee panel data covering the period 1999–2010, our empirical results exhibit a positive and significant impact of over-education on firm productivity. Moreover, they suggest that the effect of over-education is positively enhanced when the firm implements a CSR process, especially when it aims to have: (i) a good match between job requirements and workers’ educational level, (ii) a diverse workforce in terms of gender and age, and (iii) a long-term relationship with its workers. When focussing on required education and over-education, the results suggest that CSR, besides representing an innovative and proactive approach for the firms’ stakeholders, may also be beneficial for the firm itself through a bigger increase in productivity for each additional year of required education or over-education.
Journal: Applied Economics
Pages: 587-605
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203061
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203061
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Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:587-605
Template-Type: ReDIF-Article 1.0
Author-Name: Zhaohua Wang
Author-X-Name-First: Zhaohua
Author-X-Name-Last: Wang
Author-Name: Junwei Sun
Author-X-Name-First: Junwei
Author-X-Name-Last: Sun
Title: Analysis of interregional industry linkage and economic distance in China: evidence from the mining industry
Abstract:
The mining industry is an important sector of the national economy, which provides essential support for energy and other resources for economic development. Industrial linkage and economic distance are two different concepts in measuring the correlationship of different industries, in this article, we apply the model that combines both of them to analyse the industries significantly influence the mining industry. We find that electricity and heating industry, and the mining industry itself from forward linkages have greatly influenced the mining industry, and the industries from backward linkages affect mining industry are changing with industrial economic transformation. We also find resources can flow across several regions only after 2007, which means the role of geographical factors limiting long-range transportation of resources is weakening after 2007. And we explain how resources flow among various regions during 1997 ~ 2007. Based on the findings above, policy implications from the empirical results obtained are discussed.
Journal: Applied Economics
Pages: 606-617
Issue: 6
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203062
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203062
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Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:606-617
Template-Type: ReDIF-Article 1.0
Author-Name: Qi-an Chen
Author-X-Name-First: Qi-an
Author-X-Name-Last: Chen
Author-Name: Fangzhou Du
Author-X-Name-First: Fangzhou
Author-X-Name-Last: Du
Title: Financial innovation, systematic risk and commercial banks’ stability in China: theory and evidence
Abstract:
We are dedicated to revealing the impacts of financial innovation and systematic risk on commercial banks’ stability in China, both theoretically and empirically. We established a theoretical model and derived a theoretical mechanism from this model revealing two distinctive patterns of the impacts determined by the profitability of financial derivatives: the impacts of financial innovation and systematic risk on banks’ stability in China are linear under the circumstances of a positive expected risk premium of financial derivatives; conversely, the impacts can be linear, U-shaped or cubic when the expected risk premium is negative. We make three propositions to analyse the patterns and conditions of these impacts in detail. In the empirical analysis, we do not focus only on the banking industry but also on individual commercial banks. The empirical results demonstrate that the impact of financial innovation on both the banking industry’s and most individual commercial banks’ stability are U-shaped, and the impact of systematic risk on the banking industry’s and on only one commercial bank’s stability are significantly linear, which confirms certain conditions mentioned in the theoretical propositions. Finally, the study’s conclusions are presented, and the contributions of the article to future study are also mentioned.
Journal: Applied Economics
Pages: 3887-3898
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148255
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148255
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Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3887-3898
Template-Type: ReDIF-Article 1.0
Author-Name: Qigang Yuan
Author-X-Name-First: Qigang
Author-X-Name-Last: Yuan
Author-Name: Yanping Zhao
Author-X-Name-First: Yanping
Author-X-Name-Last: Zhao
Author-Name: Hui Shang
Author-X-Name-First: Hui
Author-X-Name-Last: Shang
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: Financing constraints on the size distribution of industrial firms: the Chinese experience
Abstract:
We investigate whether financing constraints affect the size distribution of Chinese industrial firms from 1998 to 2007. Although the firm size distribution does not follow Zipf distribution in China, it is approaching Zipf distribution over time. In general, financing constraints have a robustly negative effect on the size distribution of firms. Furthermore, firms in Western China grow significantly more equally after controlling for financing constraints. However, the effect of financing constraints in Central China is significantly negative, and the effect of financing constraints on firm size distribution in Eastern China is insignificant. We thus expect a non-linear relationship between financing constraints and firm size distribution.
Journal: Applied Economics
Pages: 3899-3911
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148256
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148256
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Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3899-3911
Template-Type: ReDIF-Article 1.0
Author-Name: Cristian Barra
Author-X-Name-First: Cristian
Author-X-Name-Last: Barra
Author-Name: Giovanna Bimonte
Author-X-Name-First: Giovanna
Author-X-Name-Last: Bimonte
Author-Name: Roberto Zotti
Author-X-Name-First: Roberto
Author-X-Name-Last: Zotti
Title: On the relationship among efficiency, capitalization and risk: does management matter in local banking market?
Abstract:
By employing a Granger causality methodology in a panel data framework, this article explores the relationship among efficiency, capitalization and credit risk within the local Italian banking system. Focusing the attention on cooperative banks, we specifically test whether managers take more risks in highly concentrated markets (i.e. monopoly) than in partially competitive markets (i.e. duopoly). The evidence shows that in more concentrated markets, management efficiency generates a decrease in risk-taking (rejecting the bad management hypothesis) with respect to the partially competitive markets. Results are consistent with the idea that banks with less local competition are able to increase their profits by indulging more freely in rent-seeking behaviour, minimizing their risk-taking and, consequently, improving the quality of their assets through additional screening processes. The financial crisis does not seem to affect the conduct of management in terms of bank investment decisions and risk-taking. A series of robustness tests generally confirms our findings.
Journal: Applied Economics
Pages: 3912-3934
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148257
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148257
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Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3912-3934
Template-Type: ReDIF-Article 1.0
Author-Name: Dou Jiang
Author-X-Name-First: Dou
Author-X-Name-Last: Jiang
Title: Inflation and inflation uncertainty in China
Abstract:
The study examines the relationship between inflation and inflation uncertainty in China using Generalized Autoregressive Conditional Heteroscedasticity model. Particularly, this link is investigated in China’s urban and rural sectors, motivated by the substantial urban–rural divide. The results provide strong statistical supportive evidence that higher inflation raises inflation uncertainty. On the other hand, evidence on the effect of inflation uncertainty on inflation is mixed depending on the sample periods and areas examined. The understanding of inflation-uncertainty nexus in China could provide implications to policymakers in the adoption of monetary policies.
Journal: Applied Economics
Pages: 3935-3943
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148258
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148258
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Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3935-3943
Template-Type: ReDIF-Article 1.0
Author-Name: Dengjun Zhang
Author-X-Name-First: Dengjun
Author-X-Name-Last: Zhang
Author-Name: Yuqing Zheng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Zheng
Title: The role of price risk in China’s agricultural and fisheries exports to the US
Abstract:
This article explores the effect of price risk on the US importers’ optimal allocation of agriculture imports between the major supplier, China, and other competing countries. We first modify a demand system to account for the impacts of own-price risk and cross-price risk, and then apply the model to 16 agricultural and fisheries commodities exported to the US. The estimation results show that importers are sensitive to price risks of 14 Chinese commodities. Comparisons between price risk–trade relations of agricultural and fisheries products and between trade effects of cross-price risk on Chinese goods and substitutes provide strong evidence for explaining the observed trade patterns. Our study highlights the importance of price stability in promoting international trade, especially from developing countries to developed countries.
Journal: Applied Economics
Pages: 3944-3960
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148259
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148259
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Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3944-3960
Template-Type: ReDIF-Article 1.0
Author-Name: Andrés Navarro-Galera
Author-X-Name-First: Andrés
Author-X-Name-Last: Navarro-Galera
Author-Name: Manuel Pedro Rodríguez-Bolívar
Author-X-Name-First: Manuel Pedro
Author-X-Name-Last: Rodríguez-Bolívar
Author-Name: Laura Alcaide-Muñoz
Author-X-Name-First: Laura
Author-X-Name-Last: Alcaide-Muñoz
Author-Name: María Deseada López-Subires
Author-X-Name-First: María Deseada
Author-X-Name-Last: López-Subires
Title: Measuring the financial sustainability and its influential factors in local governments
Abstract:
The economic crisis has led international organizations and previous research to point out the need for measuring and controlling financial sustainability in governments. Based on the main international pronouncements, this article seeks to contribute to the measurement and management of the financial sustainability, analysing the income statement evolution and identifying its influential factors. An empirical study of Spanish municipalities is then undertaken to test the relationship between the measure of the financial sustainability and three dimensions proposed by International Federation of Accountants (IFAC) (revenues, debt and services). Our findings indicate that the income statement is a good approach for the financial sustainability assessment, because it reveals relevant information about its three dimensions, allowing to identify the specific factors which could provoke sustainability problems on public services.
Journal: Applied Economics
Pages: 3961-3975
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1148260
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1148260
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Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3961-3975
Template-Type: ReDIF-Article 1.0
Author-Name: Nicoletta Berardi
Author-X-Name-First: Nicoletta
Author-X-Name-Last: Berardi
Author-Name: Patrick Sevestre
Author-X-Name-First: Patrick
Author-X-Name-Last: Sevestre
Author-Name: Marine Tépaut
Author-X-Name-First: Marine
Author-X-Name-Last: Tépaut
Author-Name: Alexandre Vigneron
Author-X-Name-First: Alexandre
Author-X-Name-Last: Vigneron
Title: The impact of a ‘soda tax’ on prices: evidence from French micro data
Abstract:
Based on an original data set of more than 500,000 non-alcoholic beverage price records, we evaluate the impact on consumer prices of the ‘soda tax’, an excise on drinks with added sugar or sweetener, introduced in France in January 2012. We adopt a difference in differences approach and find that the tax was gradually passed through to the prices of the taxed beverages. After 6 months of its introduction, it was fully shifted to soda prices and almost fully shifted to the prices of fruit drinks, while the pass-through for flavoured waters was incomplete. We also find that the pass-through was heterogeneous across brands and retail groups.
Journal: Applied Economics
Pages: 3976-3994
Issue: 41
Volume: 48
Year: 2016
Month: 9
X-DOI: 10.1080/00036846.2016.1150946
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1150946
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Handle: RePEc:taf:applec:v:48:y:2016:i:41:p:3976-3994
Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Ricardian equivalence and the public and private saving nexus in India
Abstract:
This study tests the Ricardian equivalence theorem (RET) and examines the responsiveness of private saving to public saving in India. Most estimators do not provide support for the empirical validity of RET and long-run cointegration between public and private saving. The increases in household saving (HHS) seem to have been engendered by the provision of saving incentives, institution of saving schemes, self-driven motivation to save, and the precautionary accumulations induced by uncovered uncertainties in incomes, rather than by Ricardian behaviour of households. The self-imposed aversion to debt and debt bequest, borrowing and liquidity constraints, and the intertemporal smoothing of consumption have been the added catalysts that contributed to the increases in HHS. The households with binding borrowing constraints, inadequate or no insurance and uncovered uncertainties in incomes seem to have been saving more to pay for higher inflation-tax. The fiscal consolidation and generation of public saving are essential to reduce the tax burden (both explicit through fiscal taxes and implicit through inflation-tax), minimize the likelihoods of economic and financial crises, and maintain the internal and external value of domestic currency.
Journal: Applied Economics
Pages: 3579-3598
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265072
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265072
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Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3579-3598
Template-Type: ReDIF-Article 1.0
Author-Name: Martina Hedvicakova
Author-X-Name-First: Martina
Author-X-Name-Last: Hedvicakova
Title: Key study of bank accounts for young people with using multi-criteria optimization and fuzzy analysis
Abstract:
Using multi-criteria optimization and fuzzy analysis this article aims to select the most suitable bank account for young people. Two scientific questions are asked: Is the same type of student account suitable for an active as well as an inactive client? Are there any free of charge student accounts?The first part focuses on the introduction to the topic, a summary of the advantages and disadvantages of student accounts and modelling of two target groups. The second part describes the methodology of decision-making by using a fuzzy set theory. Selection of the optimum student account will be made by the transformation matrix. Subsequently, the retransformation matrix is set. The most suitable student accounts are again selected for each profile and the results are compared with the analysis in the first part. To complete the solution, the last part of the article focuses on decision-making with the uncertainty of input information. Due to ignorance of their own monthly needs and the number of payments, fuzzy sets are used. In addition to the active and passive client, a third profile will be newly created and can be identified with some of the profiles to a certain extent.
Journal: Applied Economics
Pages: 3599-3610
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265073
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265073
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Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3599-3610
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandra Cepparulo
Author-X-Name-First: Alessandra
Author-X-Name-Last: Cepparulo
Author-Name: Juan Carlos Cuestas
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Cuestas
Author-Name: Maurizio Intartaglia
Author-X-Name-First: Maurizio
Author-X-Name-Last: Intartaglia
Title: Financial development, institutions, and poverty alleviation: an empirical analysis
Abstract:
The aim of this article is to analyse empirically whether the level of institutional quality influences how financial development affects poverty for a sample of developing countries covering the period from 1984 to 2012. Using an interaction term constructed as a product between financial development and institutional quality we find that the pro-poor impact of financial development decreases as the quality of institutions rises. Such a differential effect can be ascribed to the capacity of banks to provide functions that mimic those performed by an institutional framework that works well. The results of this article can be used for policy management.
Journal: Applied Economics
Pages: 3611-3622
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265074
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265074
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Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3611-3622
Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Kodama
Author-X-Name-First: Masahiro
Author-X-Name-Last: Kodama
Title: How strongly can industrial structural transformation affect GDP?
Abstract:
It is well known that when a country develops, its leading industry shifts from agriculture to non-agriculture. This industrial structural transformation has recently attracted considerable attention from scholars. Then, how strongly can this industrial structural transformation affect a country’s income? In this study, we shed light on this research question. More specifically, we measure magnitudes of the industrial structural transformation’s influence on GDP, by examining the following counterfactual GDP. We calculate a country’s counterfactual GDP when the country specializes in agriculture. If the counterfactual GDP is considerably small without the non-agricultural sector, this suggests that the industrial structural transformation from agriculture to non-agriculture is considerably important, in terms of GDP. We use Japan as our sample economy. Consequently, we find that the counterfactual GDP is surprisingly small, which suggests that the industrial structural transformation’s influence on GDP is surprisingly large. We also find that one of the main factors responsible for the surprisingly small counterfactual GDP is land, which has not been deeply examined.
Journal: Applied Economics
Pages: 3623-3633
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265075
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265075
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Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3623-3633
Template-Type: ReDIF-Article 1.0
Author-Name: Charles B. Moss
Author-X-Name-First: Charles B.
Author-X-Name-Last: Moss
Author-Name: Alexandre Lyambabaje
Author-X-Name-First: Alexandre
Author-X-Name-Last: Lyambabaje
Author-Name: James F. Oehmke
Author-X-Name-First: James F.
Author-X-Name-Last: Oehmke
Title: An economic evaluation of SPREAD on Rwanda’s rural population
Abstract:
Sustainable Partnerships to Enhance Rural Enterprises and Agricultural Development (SPREAD) was a programme to enhance the value chain for commodities in Rwanda including coffee. The implicit concept was that improving the value chain would increase the incomes for smallholders and, hence, reduce the poverty rate. The results indicate that Rwanda coffee prices increased relative to an index price for traded coffee with the implementation of SPREAD. In addition, the results indicate that participation in the coffee market at this time was associated with higher household income and lower rates of poverty.
Journal: Applied Economics
Pages: 3634-3644
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265076
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265076
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Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3634-3644
Template-Type: ReDIF-Article 1.0
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: Revisiting the exchange rate disconnect puzzle
Abstract:
One of the major anomalies in International Macroeconomics is the persistent finding that the exchange rate has no empirical relationship with a variety of macroeconomic fundamentals. Dubbed the ‘exchange rate disconnect puzzle’, this article examines this issue for five Australian dollar bilateral exchange rates, using quarterly data for the period 1984:1–2015:4. A novel feature of this article is that it departs from the extant literature by using a different approach to testing for cointegration. The results show that the exchange rates and fundamentals move together in the long run. Furthermore, the results show that fundamentals Granger cause exchange rates, both in the short run and the long run.
Journal: Applied Economics
Pages: 3645-3668
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265077
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265077
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Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3645-3668
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Author-Name: Feng Yao
Author-X-Name-First: Feng
Author-X-Name-Last: Yao
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Title: Confucius Institute’s effects on international travel to China: do cultural difference or institutional quality matter?
Abstract:
This article uses a panel data of China’s inbound tourist flows from 2005 to 2015 to investigate Confucius Institute (CI)’s influence on China’s tourism. We find that CI, as a comprehensive platform for China’s foreign cultural exchange, has a significant positive effect on China’s tourist flows. The effects of CI on China’s inbound tourism are transmitted through bridging cultural gaps and promoting Chinese language, which reduces psychic distance and transaction costs. CI also stimulates China’s inbound tourist flows via reducing information asymmetry caused by different levels of institutional quality. Interestingly, we find that the heterogeneous effects of CI on China’s inbound tourism depend on institutional quality, and the effects of CI to boost China’s tourists are more prominent in departure countries with larger cultural difference.
Journal: Applied Economics
Pages: 3669-3683
Issue: 36
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265078
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265078
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Handle: RePEc:taf:applec:v:49:y:2017:i:36:p:3669-3683
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Karaivanov
Author-X-Name-First: Alexander
Author-X-Name-Last: Karaivanov
Title: Non-grant microfinance, incentives and efficiency
Abstract:
I show that charging interest on funds provided by donors or investors to microfinance institutions (MFIs) can increase efficiency, the total number of loans and borrower welfare, compared to grant or concessionary funding. In a setting in which MFIs supply costly non-contractible effort, putting a price or raising the price of loanable funds strengthens the MFIs’ incentives to put effort in credit administration or monitoring, to extend more loans, and/or reduce overhead costs. This theoretical result is robust to several variations of the benchmark model allowing for an endogenous lending rate, motivated MFIs and endogenous overhead costs.
Journal: Applied Economics
Pages: 2509-2524
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400655
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400655
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Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2509-2524
Template-Type: ReDIF-Article 1.0
Author-Name: Liyan Han
Author-X-Name-First: Liyan
Author-X-Name-Last: Han
Author-Name: You Wu
Author-X-Name-First: You
Author-X-Name-Last: Wu
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Investor attention and currency performance: international evidence
Abstract:
This article investigates the relationship between investor attention measured by Google search volume index and the performance of several currencies. We find that currency performance is remarkably responsive to changes in investor attention. These impacts, generated rapidly, are present over the relatively long term, especially for emerging currencies, and are intensified during periods of high uncertainty. We also demonstrate that there is a prominent asymmetric effect for the impact of attention, as past currency performance also influences attention. Typically, past currency performance can determine the magnitude of the impact on current currency performance. Moreover, we confirm that investor attention has a predictive power for forecasting emerging currency performance in the out-of-sample analysis. Further, these forecasts generate substantial economic value in the framework of asset allocation. By contrast, statistical predictability and economic value do not exist in the currencies from developed markets. These results indicate that investor attention can alter currency performance and its predictability. More broadly, our study emphasizes the potential of employing investor attention for emerging currency performance forecasting applications.
Journal: Applied Economics
Pages: 2525-2551
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403556
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403556
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Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2525-2551
Template-Type: ReDIF-Article 1.0
Author-Name: Pratap Chandra Pati
Author-X-Name-First: Pratap Chandra
Author-X-Name-Last: Pati
Author-Name: Parama Barai
Author-X-Name-First: Parama
Author-X-Name-Last: Barai
Author-Name: Prabina Rajib
Author-X-Name-First: Prabina
Author-X-Name-Last: Rajib
Title: Forecasting stock market volatility and information content of implied volatility index
Abstract:
This study investigates the incremental information content of implied volatility index relative to the GARCH family models in forecasting volatility of the three Asia-Pacific stock markets, namely India, Australia and Hong Kong. To examine the in-sample information content, the conditional variance equations of GARCH family models are augmented by incorporating implied volatility index as an explanatory variable. The return-based realized variance and the range-based realized variance constructed from 5-min data are used as proxy for latent volatility. To assess the out-of-sample forecast performance, we generate one-day-ahead rolling forecasts and employ the Mincer–Zarnowitz regression and encompassing regression. We find that the inclusion of implied volatility index in the conditional variance equation of GARCH family model reduces volatility persistence and improves model fitness. The significant and positive coefficient of implied volatility index in the augmented GARCH family models suggests that it contains relevant information in describing the volatility process. The study finds that volatility index is a biased forecast but possesses relevant information in explaining future realized volatility. The results of encompassing regression suggest that implied volatility index contains additional information relevant for forecasting stock market volatility beyond the information contained in the GARCH family model forecasts.
Journal: Applied Economics
Pages: 2552-2568
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403557
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403557
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Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2552-2568
Template-Type: ReDIF-Article 1.0
Author-Name: Bana Abuzayed
Author-X-Name-First: Bana
Author-X-Name-Last: Abuzayed
Author-Name: Nedal Al-Fayoumi
Author-X-Name-First: Nedal
Author-X-Name-Last: Al-Fayoumi
Author-Name: Lanouar Charfeddine
Author-X-Name-First: Lanouar
Author-X-Name-Last: Charfeddine
Title: Long range dependence in an emerging stock market’s sectors: volatility modelling and VaR forecasting
Abstract:
This study evaluates the sector risk of the Qatar Stock Exchange (QSE), a recently upgraded emerging stock market, using value-at-risk models for the 7 January 2007–18 October 2015 period. After providing evidence for true long memory in volatility using the log-likelihood profile test of Qu and splitting the sample and dth differentiation tests of Shimotsu, we compare the FIGARCH, HYGARCH and FIAPARCH models under normal, Student-t and skewed-t innovation distributions based on in and out-of-sample VaR forecasts. The empirical results show that the skewed Student-t FIGARCH model generates the most accurate prediction of one-day-VaR forecasts. The policy implications for portfolio managers are also discussed.
Journal: Applied Economics
Pages: 2569-2599
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403559
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403559
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Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2569-2599
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad A. Cheema
Author-X-Name-First: Muhammad A.
Author-X-Name-Last: Cheema
Author-Name: Gilbert V. Nartea
Author-X-Name-First: Gilbert V.
Author-X-Name-Last: Nartea
Author-Name: Kenneth R. Szulczyk
Author-X-Name-First: Kenneth R.
Author-X-Name-Last: Szulczyk
Title: Cross-sectional and time-series momentum returns and market dynamics: evidence from Japan
Abstract:
We test the behavioural theories of overconfidence and underreaction on cross-sectional (CS) and time-series (TS) momentum returns in the Japanese stock markets. Both CS and TS momentum returns are large and significant when the market continues in the same state and turns into losses when the market transitions to another state, consistent with the overconfidence but not the underreaction model. We find that TS conditional momentum returns exceed conditional CS momentum returns because of its active position since TS takes a net long (short) position following UP (DN) markets while CS is a zero-cost strategy irrespective of the market state. Finally, we find no relation between idiosyncratic volatility (IV) and momentum returns which is not supportive of either the overconfidence or underreaction model but implies that IV is not a significant limit to arbitrage in Japan.
Journal: Applied Economics
Pages: 2600-2612
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403560
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403560
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Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2600-2612
Template-Type: ReDIF-Article 1.0
Author-Name: Duane W. Rockerbie
Author-X-Name-First: Duane W.
Author-X-Name-Last: Rockerbie
Title: The invariance principle in baseball: new evidence
Abstract:
This article considers the change in revenue sharing in Major League Baseball that occurred prior to the 2007 season and its effects on parity via its effects on marginal revenues. Based on the results from an empirical specification for team revenue, we find evidence that the reduction in revenue sharing increased marginal revenue by more for large market clubs than for small market clubs, despite holding constant other differences in how small and large market club revenues are determined. The upshot of this result is that the modest reduction in revenue sharing could have worsened league parity by 11 to 17 points in winning percentage between small and large market clubs, although other factors affect parity as well. The well-known invariance principle in the economics of sport literature does not appear to hold; however, the current consensus of theoretical models is not confirmed.
Journal: Applied Economics
Pages: 2613-2621
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403561
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403561
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Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2613-2621
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Tsung-Pao Wu
Author-X-Name-First: Tsung-Pao
Author-X-Name-Last: Wu
Title: PPP in the 34 OECD countries: evidence from quantile-based unit root tests with both smooth and sharp breaks
Abstract:
Conventional unit root tests have mostly failed to validate the PPP. Quantile-based unit root tests by previous research have provided some support for the PPP. In this article, we take an additional step and incorporate sharp shifts and smooth breaks into the quantile-based unit root test and re-examine the PPP in each of the 34 OECD countries over the period 1994:01–2016:03. We find support for the PPP in 18 countries of Austria, Chile, Estonia, Finland, France, Germany, Italy, Korea, Mexico, Netherlands, New Zealand, Poland, Portugal, Slovenia, Sweden, Switzerland, Turkey and the United Kingdom.
Journal: Applied Economics
Pages: 2622-2634
Issue: 23
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1403562
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1403562
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Handle: RePEc:taf:applec:v:50:y:2018:i:23:p:2622-2634
Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Apergis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Apergis
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The role of rare earth prices for consumer prices: an ignored factor?
Abstract:
The article explores the role of a new determinant that accounts for driving consumer prices, i.e. rare earth prices. Rare earths are used for many advanced manufacturing and military technologies. Performing a number of panel methodological approaches, panel cointegration findings support the initial insight of the authors and illustrate a positive effect on consumer prices across all rare earths.
Journal: Applied Economics
Pages: 5890-5894
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1355544
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1355544
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Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5890-5894
Template-Type: ReDIF-Article 1.0
Author-Name: Graham Bird
Author-X-Name-First: Graham
Author-X-Name-Last: Bird
Author-Name: Wenti Du
Author-X-Name-First: Wenti
Author-X-Name-Last: Du
Author-Name: Eric Pentecost
Author-X-Name-First: Eric
Author-X-Name-Last: Pentecost
Author-Name: Thomas Willett
Author-X-Name-First: Thomas
Author-X-Name-Last: Willett
Title: Safe haven or contagion? The disparate effects of Euro-zone crises on non-Euro-zone neighbours
Abstract:
While there have been many studies that examine contagion within the Euro-zone, this article investigates the potential contagion from changes in the Greek sovereign risk premium over 2009–2016, as measured by the yield on 10-year government bonds, to six European countries outside of the Euro-zone all of which operated a managed float against the Euro. We find evidence of contagion to potential Euro-zone ascendants (Czech Republic, Hungary and Poland), but ‘flight to safety’ (or safe haven) effects for the United Kingdom, Sweden and Switzerland.
Journal: Applied Economics
Pages: 5895-5904
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1358445
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1358445
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Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5895-5904
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio M. Friedman-Soza
Author-X-Name-First: Antonio M.
Author-X-Name-Last: Friedman-Soza
Author-Name: Jorge R. Friedman
Author-X-Name-First: Jorge R.
Author-X-Name-Last: Friedman
Author-Name: Tomas A. Galvez-Silva
Author-X-Name-First: Tomas A.
Author-X-Name-Last: Galvez-Silva
Author-Name: Carlos F. Yevenes
Author-X-Name-First: Carlos F.
Author-X-Name-Last: Yevenes
Title: Sport event attendance as a function of education: evidence from the UK
Abstract:
This article studies the role of education in the decision to attend sporting events. The overall objective is to verify whether more educated individuals are more likely to go to sports events than their less educated counterparts. If education socializes persons to focus on sports, it would then partially offset negative alternatives such as alcohol, drug abuse and unlawful behaviours, creating a positive externality. Sport events consumption is extensive, highlighting the potential economic importance of the sports-education externality. To establish the role of education in sport attendance, this article applies a probabilistic linear regression model to data from the UK. The econometric formulation associates sport event attendance in the left hand side with education in the right hand side, while controlling for the socioeconomic variables that are known to affect a consumer’s decision to go to a sport event: gender, age, income, employment status, children, marital status, and geographical location, among others. These findings add to a somewhat limited literature on both the effect of education on sports attendance and secondarily, on the impact of other socioeconomic variables on attendance.
Journal: Applied Economics
Pages: 5905-5915
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1361007
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361007
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Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5905-5915
Template-Type: ReDIF-Article 1.0
Author-Name: Kamal P. Upadhyaya
Author-X-Name-First: Kamal P.
Author-X-Name-Last: Upadhyaya
Author-Name: Dharmendra Dhakal
Author-X-Name-First: Dharmendra
Author-X-Name-Last: Dhakal
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Housing prices, stock prices and the US economy
Abstract:
This paper studies the relationship between housing prices, stock prices, interest rates and aggregate output in the US using monthly data from 1993 to 2014. Evidence from causality tests and a variance decomposition procedure suggest that stock prices have a much larger effect on aggregate output in the US economy than do either housing prices or interest rates. Instead, the wealth effect created by changes in stock prices has a relatively large impact on US aggregate output. Separate estimations and variance decompositions for the sample periods 1993–2001, 2002–2008 and 2009–2014 show that the impact of housing prices relative to stock prices has been waning over time.
Journal: Applied Economics
Pages: 5916-5922
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1361009
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361009
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Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5916-5922
Template-Type: ReDIF-Article 1.0
Author-Name: Craig A. Depken
Author-X-Name-First: Craig A.
Author-X-Name-Last: Depken
Author-Name: Johnny Ducking
Author-X-Name-First: Johnny
Author-X-Name-Last: Ducking
Author-Name: Peter A. Groothuis
Author-X-Name-First: Peter A.
Author-X-Name-Last: Groothuis
Title: Career duration in the NHL: pushing and pulling on Europeans?
Abstract:
Using a panel of National Hockey League players from 2000 through 2013, we analyse the determinants of career length in the league. In our analysis, we include both performance variables and nationality of origin to determine their importance in determining career length. We find that European-born players have shorter careers than North American-born players holding performance constant and Russian-born players have even shorter careers than other Europeans. We further find that Russian-born players have even shorter careers than other players after the 2005 lockout. These shorter careers are consistent with both exit discrimination against European and Russian players who are pushed out of the league as well as voluntary exit by European and Russian players who are pulled out of the league due to opportunities in their home countries.
Journal: Applied Economics
Pages: 5923-5934
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1361011
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1361011
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Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5923-5934
Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa U. Karakaplan
Author-X-Name-First: Mustafa U.
Author-X-Name-Last: Karakaplan
Author-Name: Levent Kutlu
Author-X-Name-First: Levent
Author-X-Name-Last: Kutlu
Title: Endogeneity in panel stochastic frontier models: an application to the Japanese cotton spinning industry
Abstract:
We present a panel stochastic frontier model that handles the endogeneity problem. This model can treat the endogeneity of both frontier and inefficiency variables. We apply our method to examine the technical efficiency of Japanese cotton spinning industry. Our results indicate that market concentration is endogenous, and when its endogeneity is properly handled, it has a larger negative impact on the technical efficiency of cotton spinning plants. We find that the exogenous model substantially overestimates efficiency in concentrated markets.
Journal: Applied Economics
Pages: 5935-5939
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1363861
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363861
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Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5935-5939
Template-Type: ReDIF-Article 1.0
Author-Name: Yosef Bonaparte
Author-X-Name-First: Yosef
Author-X-Name-Last: Bonaparte
Author-Name: Frank J Fabozzi
Author-X-Name-First: Frank J
Author-X-Name-Last: Fabozzi
Title: A flexible approach to estimate the equity premium
Abstract:
In this article, we estimate the risk aversion for households accounting for their lifetime consumption risk. Households take into account the overall lifetime uninsured consumption risk when optimizing their resources, which based on micro data varies across households. Thus, representing households’ consumption by merging cross-sectional micro data into the single Euler equation (the common approach for estimating risk aversion based on consumption-based asset pricing theory) may be too rough an approximation, leading to biased results with respect to risk aversion. Our results suggest that consumption-based asset pricing models that were rejected in several studies do in fact fit the data when we account for households’ lifetime consumption risk. This finding also has implications for long-run aggregate consumption-based asset pricing models.
Journal: Applied Economics
Pages: 5940-5950
Issue: 59
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1363862
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1363862
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Handle: RePEc:taf:applec:v:49:y:2017:i:59:p:5940-5950
Template-Type: ReDIF-Article 1.0
Author-Name: Dominik Schreyer
Author-X-Name-First: Dominik
Author-X-Name-Last: Schreyer
Title: Football spectator no-show behaviour in the German Bundesliga
Abstract:
Despite an extensive literature on stadium attendance demand, our understanding of those factors shaping spectator no-show behaviour is rudimentary at best. Here, we explore such behaviour by using a comprehensive two-step approach: First, we examine the determinants of no-show behaviour in the German Bundesliga between the four seasons 2014–15 and 2017–18; Second, because our initial results imply that spectator no-show behaviour is more prominent among season ticket holders (STHs), we exploit additional survey data to understand individual STH no-show appearances better. Our results suggest that club managers interested in reducing the no-show rate should rethink existing season ticket strategies.
Journal: Applied Economics
Pages: 4882-4901
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602709
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602709
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Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4882-4901
Template-Type: ReDIF-Article 1.0
Author-Name: Gaoxiu Qiao
Author-X-Name-First: Gaoxiu
Author-X-Name-Last: Qiao
Author-Name: Pengfei Zhao
Author-X-Name-First: Pengfei
Author-X-Name-Last: Zhao
Author-Name: Weiping Li
Author-X-Name-First: Weiping
Author-X-Name-Last: Li
Title: Time varying price discovery of the New Third Board market in China: does the market-making system help?
Abstract:
This paper examines whether the market-making system helps to improve the price discovery ability of New Third Board (NTB) market in China. We first estimate the time-varying coefficients error correction models, then apply common factor weight method to quantify the time-varying price discovery contributions, and finally explore the impacts of trading volume and volatility to price discovery contributions. Empirical results show that both markets have time-varying characteristic in terms of the magnitudes and directions of the equilibrium price adjustment due to error correction term. The Shanghai Composite Index, SZSE Component Index, and SME Index are found to lead in price discovery, while NTB exhibits the leadership on the GEM Index. Volume and volatility have significant influence on the price discovery contribution. The NTB contribution is positively related to its own trading activity, negatively related to the trading activity of Shanghai and Shenzhen stock markets, while negatively correlated with the volatility of both markets. In comparison, trading activity of SZSE Component Index and volatility of GEM Index have the greatest negative impacts on the contribution of NTB market. As an important part of China’s multi-level capital market, the pricing mechanism of the NTB market needs further to be improved.
Journal: Applied Economics
Pages: 4902-4919
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602711
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602711
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Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4902-4919
Template-Type: ReDIF-Article 1.0
Author-Name: Lior Cohen
Author-X-Name-First: Lior
Author-X-Name-Last: Cohen
Author-Name: Marta Gómez-Puig
Author-X-Name-First: Marta
Author-X-Name-Last: Gómez-Puig
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: Has the ECB’s monetary policy prompted companies to invest, or pay dividends?
Abstract:
This paper focuses on the influence of the European Central Bank’s (ECB) monetary policies on non-financial firms. It sheds light on non-financial firms’ decisions regarding leverage, and on how the ECB’s conventional and unconventional policies may have affected them. The paper also examines how these policies influenced non-financial firms’ decisions on capital allocation – primarily capital spending and shareholder distribution (for example, dividends and share repurchases). We use an exhaustive and unique dataset comprised of income statements and balance sheets of leading non-financial firms operating in the European Economic and Monetary Union (EMU). The main results suggest that ECB’s monetary policies have encouraged firms to raise their debt burden, especially after the global recession of 2008. Finally, the ECB’s policies, especially after 2011, also seem to have led non-financial firms to allocate more resources not just to capital spending but to shareholder distribution as well.
Journal: Applied Economics
Pages: 4920-4938
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602715
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602715
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Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4920-4938
Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Chao Wang
Author-X-Name-First: Yang-Chao
Author-X-Name-Last: Wang
Author-Name: Jui-Jung Tsai
Author-X-Name-First: Jui-Jung
Author-X-Name-Last: Tsai
Author-Name: Lanxin Lu
Author-X-Name-First: Lanxin
Author-X-Name-Last: Lu
Title: The impact of Chinese monetary policy on co-movements between money and capital markets
Abstract:
From 2010 to 2017, with interest rate liberalization and capital market development in China, the impact of monetary policies on China’s financial markets underwent continuous evolution. Using the DCC-GARCH model, this study investigates the transmission process of monetary policies from the money market to capital markets (stock and bond markets). The results show that in the early stage the instability of the money and stock markets and the downturn in the bond market are primarily caused by the block of monetary policy transmission and the paucity of fund sources in the capital markets. Subsequently, the outbreak of the 2013 money shortage and the 2015 stock market crash are also closely related to monetary policies. In the later periods, the money and stock markets maintain a low degree of correlation for a long time, reducing the impact of destabilizing factors on the stock market. By contrast, with the advancement of interest rate reform and the optimization of bond market structure, the bond market is highly relevant to the money market. The central bank regulates the bond market more effectively using both traditional and innovative monetary policy tools.
Journal: Applied Economics
Pages: 4939-4955
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1606407
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606407
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Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4939-4955
Template-Type: ReDIF-Article 1.0
Author-Name: Poornima Varma
Author-X-Name-First: Poornima
Author-X-Name-Last: Varma
Title: Adoption and the impact of system of rice intensification on rice yields and household income: an analysis for India
Abstract:
This paper examines the determinants and impacts of the adoption of five mutually exclusive practices System of Rice Intensification (SRI) on yields and household incomes using a multinomial endogenous treatment effects model. Farm household survey data is collected from selected districts of three States of India. Results suggest that the decision to adopt SRI is a function of experience in terms of age, farm assets, irrigation facility and information about SRI. The analysis showed that small and marginal farmers are more likely to adopt SRI as compared to large farmers. The National Food Security Mission (NFSM) came out to be significant and positive only in the case of few practices in some States. The welfare outcome results showed that the adoption increased the yield and income of three out of four practices-plant plus water, plant plus soil and plant plus water plus soil management. Briefly, the results show that the adoption of SRI especially full adoption of SRI has greater impact on the yield and income.
Journal: Applied Economics
Pages: 4956-4972
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1606408
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606408
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Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4956-4972
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Schleich
Author-X-Name-First: Joachim
Author-X-Name-Last: Schleich
Author-Name: Thomas Hillenbrand
Author-X-Name-First: Thomas
Author-X-Name-Last: Hillenbrand
Title: Residential water demand responds asymmetrically to rising and falling prices
Abstract:
This paper econometrically estimates residential water consumption in Germany between 2007 and 2013 based on a panel of almost 3000 supply areas. In particular, the analysis distinguishes periods of rising and falling water and sewage water prices. The short-run (long-run) price elasticity is estimated at around 4.2% (13%), but water demand appears to respond asymmetrically to rising and falling prices. When prices are rising, the short-run (long-run) price elasticity is around 6.5% (17%). When prices are falling, the short-run price elasticity is not statistically different from zero, and the long-run price elasticity is estimated at around 12%. Additional results illustrate that employing average prices instead of marginal prices results in substantially overestimating the price elasticity. These findings are particularly relevant for utilities and regulators planning to alter the tariff structure towards a higher fixed fee and a lower volumetric fee.
Journal: Applied Economics
Pages: 4973-4981
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1606412
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1606412
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Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4973-4981
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Jeremy Nguyen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Nguyen
Author-Name: Reza Hajargasht
Author-X-Name-First: Reza
Author-X-Name-Last: Hajargasht
Title: Incorporating daily market uncertainty data into a conventional short-run dynamic model: the case of the black-market exchange rate in Iran
Abstract:
The effect of market uncertainty on a country’s currency, while widely recognized, is either omitted from mainstream models or addressed using low-frequency series, which are typically subject to aggregation bias and substantial lags. In this article, we propose a new mixed-data sampling (MIDAS) modelling framework that enables us to incorporate the asymmetric daily effects of market uncertainty in a conventional monthly error correction model. We achieve this by proxying market uncertainty via the value of a ‘safe haven’ asset (gold) that investors reallocate towards in the face of heightened market risk. We apply the model to the Iranian black-market exchange rate, using a mix of the daily price of gold (28 June 2010–19 August 2018) and monthly data (July 2010-July 2018) on relative prices. Our results indicate that purchasing power parity (PPP) holds despite the recent unprecedented depreciations in the Iranian currency arising from several rounds of international sanctions. We also find that increased uncertainty can lead to instantaneous and substantial depreciations, whereas stabilization back towards the PPP path is much more sluggish.
Journal: Applied Economics
Pages: 4982-4991
Issue: 45
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1607245
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1607245
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Handle: RePEc:taf:applec:v:51:y:2019:i:45:p:4982-4991
Template-Type: ReDIF-Article 1.0
Author-Name: José Manuel Cordero
Author-X-Name-First: José Manuel
Author-X-Name-Last: Cordero
Author-Name: Francisco Pedraja
Author-X-Name-First: Francisco
Author-X-Name-Last: Pedraja
Title: The effect of financial education training on the financial literacy of Spanish students in PISA
Abstract:
The aim of this paper is to analyze the effect of financial education training on Spanish secondary students. To do this, we rely on data from PISA 2012. This included an assessment of students’ financial literacy for the first time. In order to identify the causal effect of financial education courses, we employ a difference-in-differences (DiD) approach to compare the outcomes of students receiving and not receiving education on financial concepts for two different subjects (financial literacy and reading comprehension). Our results suggest that financial education programs only have an impact if they are taught as part of other subjects, i.e. by means of a cross-curricular approach.
Journal: Applied Economics
Pages: 1679-1693
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528336
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528336
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Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1679-1693
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriela Best
Author-X-Name-First: Gabriela
Author-X-Name-Last: Best
Author-Name: Pavel Kapinos
Author-X-Name-First: Pavel
Author-X-Name-Last: Kapinos
Title: Is the Fed’s news perception different from the private sector’s?
Abstract:
The recent literature on monetary policy has dedicated considerable attention to modelling agents’ processing of information about the future in real time. This paper contributes to this growing strand by investigating the implied differences in the so-called news shocks estimated from the standard New Keynesian dynamic stochastic general equilibrium (DSGE) model using the real-time data sets from the Survey of Professional Forecasters (SPF) and the Federal Reserve’s Greenbook (GB) forecasts. Alternative specifications with either the SPF or GB forecasts aim to delineate the differences in the private sector’s and the Fed’s expectations of future macroeconomic outcomes and identify the differences in their perception of news shocks. Our results indicate that while the demand news shocks have very similar distributions in the two datasets, the monetary and cost-push news shocks from the models estimated on the GB data tend to be larger than those from the SPF. These findings suggest that the Federal Reserve’s forecasting methods allow for more variation in future outcomes than the SPF’s. These findings mesh well with the extant literature on the superiority of the Fed’s forecasts relative to the private sector’s and provide a structural explanation for the source of this superiority.
Journal: Applied Economics
Pages: 1694-1710
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528337
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528337
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Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1694-1710
Template-Type: ReDIF-Article 1.0
Author-Name: Debkumar Chakrabarti
Author-X-Name-First: Debkumar
Author-X-Name-Last: Chakrabarti
Author-Name: Pradeepta Sethi
Author-X-Name-First: Pradeepta
Author-X-Name-Last: Sethi
Author-Name: Sankalpa Bhattacharjee
Author-X-Name-First: Sankalpa
Author-X-Name-Last: Bhattacharjee
Title: Directed credit, financial development and financial structure: theory and evidence
Abstract:
The recent initiative of the RBI in reviving the policy of directed credit allocation in a period dominated by the neoliberal philosophy necessitates reconsideration of the role of policy-directed credit allocation process on financial development and financial structure of firms. Introducing certain policy parameters, the paper attempts to model how financial development-financial structure interlinkage is influenced by the liberalization policies of the government. The theoretical construct is empirically verified using both aggregated and disaggregated (firm-level) data comprising a panel of 932 Indian manufacturing firms. Findings reveal that following the liberalization measures in the early 1990s, there has been a structural shift in the debt–equity ratio of firms, with equity market activities assuming prominence over time. As regards financial development, it has been observed that the withdrawal of DFIs specialized in term-lending activities in the early 2000s led to a significant increase in the degree of financing constraints faced by the manufacturing firms. This contradicts the basic premise of financial liberalization. The paper argues that under certain conditions, government intervention in the form of directed credit programmes would not only act as an effective instrument in ushering financial development, but also provide important guidelines in ensuring sustainability of institutions.
Journal: Applied Economics
Pages: 1711-1729
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528338
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1528338
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Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1711-1729
Template-Type: ReDIF-Article 1.0
Author-Name: Mario Bossler
Author-X-Name-First: Mario
Author-X-Name-Last: Bossler
Author-Name: Jakob Wegmann
Author-X-Name-First: Jakob
Author-X-Name-Last: Wegmann
Title: The German generation internship and the minimum wage introduction: evidence from big data
Abstract:
The new German minimum wage applies a specific exemption clause for internships, where internships that last up to three months are exempted while internships that exceed three months are due to the minimum wage. Negative minimum wage effects on internships are heavily debated as internships are mostly non-productive. Difference-in-difference analyses that exploit establishment and regional variation in the bite of the minimum wage do not show a reduction in the number of internships. In addition, we pursue an innovative approach by using Google search data to analyse how the search intensity for internships changed in course of the minimum wage introduction. Difference-in-difference comparisons with other countries in Europe do not reveal an effect on the search for internship positions in general, but we observe a significant reduction in Google search for ‘generation internship’. This suggests that the underlying societal phenomenon of a generation entering internships without a perspective for regular jobs has lost in relevance.
Journal: Applied Economics
Pages: 1730-1747
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528339
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Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1730-1747
Template-Type: ReDIF-Article 1.0
Author-Name: Samuelson Appau
Author-X-Name-First: Samuelson
Author-X-Name-Last: Appau
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Lisa Farrell
Author-X-Name-First: Lisa
Author-X-Name-Last: Farrell
Title: Social integration and subjective wellbeing
Abstract:
Using data from the UK Community Life Survey, we examine the relationship between social integration and subjective wellbeing. We measure social integration along various dimensions, including frequency of interaction with one’s neighbors, perceived strength of belonging to one’s immediate neighborhood and country, length of residence in a neighborhood, and trust in neighbors. Overall, we find that social integration is associated with higher levels of subjective wellbeing. Specifically, our results suggest that an increase in the frequency of interaction with one’s neighbors is associated with an increase in subjective wellbeing. Similarly, an increase in respondent’s perceived strength of belonging to their immediate neighborhood (and country) is associated with an increase in subjective wellbeing. We further discover that an increase in the length of residence in a neighborhood is associated with an increase in subjective wellbeing, and this is also the case for an increase in the level of trust in one’s neighbour.
Journal: Applied Economics
Pages: 1748-1761
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1528340
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Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1748-1761
Template-Type: ReDIF-Article 1.0
Author-Name: Djeneba Doumbia
Author-X-Name-First: Djeneba
Author-X-Name-Last: Doumbia
Title: The quest for pro-poor and inclusive growth: the role of governance
Abstract:
This paper analyses the role of good governance in fostering pro-poor and inclusive growth. Using a sample of 112 countries over 1975–2012, it shows that growth is generally pro-poor. However, growth has not been inclusive, as illustrated by a decline in the bottom 20 percent of the income distribution. While all features of good governance support income growth and reduce poverty, only government effectiveness and the rule of law are found to enhance inclusive growth. The investigation of the determinants of pro-poor and inclusive growth highlights that education, infrastructure improvement, and financial development are the key factors in poverty reduction and inclusive growth. Relying on the panel smooth transition regression (PSTR) model, the paper identifies a nonlinear relationship between governance and pro-poor growth, while the impact of governance on inclusive growth appears to be linear.
Journal: Applied Economics
Pages: 1762-1783
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529392
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Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1762-1783
Template-Type: ReDIF-Article 1.0
Author-Name: Masahiro Hori
Author-X-Name-First: Masahiro
Author-X-Name-Last: Hori
Author-Name: Keiko Murata
Author-X-Name-First: Keiko
Author-X-Name-Last: Murata
Title: Is there a retirement consumption puzzle in Japan? Evidence from a household panel dataset spanning several years
Abstract:
Using a unique long-run panel of Japanese households, this paper examines the changes in consumption at retirement (‘the retirement-consumption puzzle’). Our analysis shows that households’ expenditure does decline after the retirement of the household head and that changes in household composition at retirement cannot fully account for this decline. Changes in life-style/preferences after retirement also do not appear to explain a salient feature of the expenditure decline, namely, the strong correlation between the magnitudes of the expenditure decline and the income decline upon retirement. On the other hand, our finding that the expenditure decline is larger for households with smaller savings and/or that experienced a large unexpected income decline is broadly consistent with the standard LC/PIH augmented with unexpected shocks, while it does not rule out the possibility that there is a relatively small subset of households that are myopic and lack sufficient saving discipline.
Journal: Applied Economics
Pages: 1784-1798
Issue: 16
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529393
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Handle: RePEc:taf:applec:v:51:y:2019:i:16:p:1784-1798
Template-Type: ReDIF-Article 1.0
Author-Name: Jiao Zhang
Author-X-Name-First: Jiao
Author-X-Name-Last: Zhang
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Title: Modelling the volatility of the tanker freight market based on improved empirical mode decomposition
Abstract:
In this article, a method based on empirical mode decomposition (EMD) and BEKK–Multivariate GARCH (MVGARCH) is developed to analyse the volatility of the tanker freight market. First, the initial time series of tanker freight rates is decomposed into several independent intrinsic mode functions (IMFs). Next, the IMFs are composed as three components by an improved EMD: the long-term trend time series that represents the benchmark freight rates of the tanker freight market, the high-frequency time series that reflects the short-term supply–demand relation and the low-frequency time series caused by extreme events. Based on the results of EMD, the volatility spillover effects between the freight rates of Aframax, Suezmax and Very Large Crude Carrier (VLCC) markets are tested by the BEKK–MVGARCH model. The results indicate that there are volatility spillover effects between the reconstructed components, although the volatility spillover effects between the original freight series are not significant. The improved EMD method contributes to the retention of the economic characteristics of the original time series, thereby providing a vital approach for tanker freight market analysis. Furthermore, the potential volatility spillover among different sub-markets can be investigated through the integration of EMD and the BEKK–MVGARCH.
Journal: Applied Economics
Pages: 1655-1667
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223823
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223823
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Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1655-1667
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Rohde
Author-X-Name-First: Nicholas
Author-X-Name-Last: Rohde
Author-Name: KK Tang
Author-X-Name-First: KK
Author-X-Name-Last: Tang
Author-Name: Lars Osberg
Author-X-Name-First: Lars
Author-X-Name-Last: Osberg
Title: The self-reinforcing dynamics of economic insecurity and obesity
Abstract:
This article models the dynamic effects of economic insecurity on body weight. Using Australian panel data, we infer an individual’s level of economic insecurity as a function of exposure to various financial risks and employ regression equations to explore its effect upon current period body mass index (BMI) scores. Estimates reveal that a sustained standard deviation increase in economic insecurity raises an individual’s BMI at a rate of approximately 0.35 units per year. Quantile regressions are then used to estimate the sensitivity of body weight to insecurity at different percentiles of the distribution and we find that persons who are overweight and obese are much more seriously affected. This implies that shocks that make individuals more financially vulnerable can generate harmful self-sustaining cycles of risk and weight gain. We also model the dynamics of insecurity and show that it is a persistent phenomenon for persons with high levels of exposure and lower incomes. This finding indicates that persons of lower socio-economic status are more likely to encounter vicious cycles of increasing insecurity and obesity, which partially explains why weight-related health problems are unusually highly concentrated amongst these individuals.
Journal: Applied Economics
Pages: 1668-1678
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223826
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223826
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Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1668-1678
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Garcia-del-Barrio
Author-X-Name-First: Pedro
Author-X-Name-Last: Garcia-del-Barrio
Author-Name: Hugo Zarco
Author-X-Name-First: Hugo
Author-X-Name-Last: Zarco
Title: Do movie contents influence box-office revenues?
Abstract:
This article studies the determinants of box-office revenues in the motion picture industry. We first adopt an approach that takes into account quality signals (e.g. talent concentration, movie budget and Oscar awards, among others) to analyse the empirical relationship between category-specific parenthood ratings (R-ratings) and box-office revenues. Then, by matching movie contents with economic performance records, our original approach reveals that offensive contents like profanity or nudity may be a hindrance to achieve economic returns, while violent contents seems to enhance box-office revenues. Further research is needed to clarify the interaction in this regard between production budget and movie contents.
Journal: Applied Economics
Pages: 1679-1688
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223828
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223828
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Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1679-1688
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Enrique Pedauga
Author-X-Name-First: Luis Enrique
Author-X-Name-Last: Pedauga
Author-Name: Lucien David Pedauga
Author-X-Name-First: Lucien David
Author-X-Name-Last: Pedauga
Author-Name: Blanca L. Delgado-Márquez
Author-X-Name-First: Blanca L.
Author-X-Name-Last: Delgado-Márquez
Title: Relationships between corruption, political orientation, and income inequality: evidence from Latin America
Abstract:
This research sheds light on the analysis of the impact of corruption and political orientation on income distribution in Latin America. Although it has been theoretically demonstrated that corruption worsens the income distribution, the empirical evidence has yielded ambiguous results based on biased estimates not considering a measurement error in the estimation of inequality. This article fills this gap by correcting the previous measurement error bias in the fixed-effects estimation. Additionally, political orientation and its relationship with income inequality are also investigated. The sample covers 18 Latin American countries between 1996 and 2012. Results reveal that corruption increases income inequality.
Journal: Applied Economics
Pages: 1689-1705
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223830
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223830
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Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1689-1705
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas W. Zuehlke
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Zuehlke
Title: Use of quadratic terms in Type 2 Tobit models
Abstract:
A Type 2 Tobit model with a common set of regressors in the selection and regression equations is identified by the nonlinearity of the distribution function. The estimates are relatively less precise than in cases where there are at least some distinct regressors in the two equations. In an attempt to overcome this problem, some authors introduce quadratic terms into one or both equations. As this does not add any new statistical information, just a deterministic function of an existing regressor, the sceptic would question how this could improve the reliability of the estimates. This article shows that arbitrary use of quadratics is not without consequence. It increases the chances of getting either multiple roots, no root or a local root where a global does not exist. The nature of this problem is illustrated with Monte Carlo methods as well as several examples from the literature.
Journal: Applied Economics
Pages: 1706-1714
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223831
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223831
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Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1706-1714
Template-Type: ReDIF-Article 1.0
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Author-Name: Riaan de Jongh
Author-X-Name-First: Riaan
Author-X-Name-Last: de Jongh
Title: A comparison of risk aggregation estimates using copulas and Fleishman distributions
Abstract:
Determining banks’ expected losses (EL) is straightforward because they are calculated using a linear combination of credit risk-related measures. Non-linear metrics, like economic capital (EC), pose considerable implementation challenges including computation complexity and a lack of adequate risk aggregation and attribution techniques when multiple portfolios and/or product segmentations are involved. Copulas have been used to overcome these problems, but the Fleishman procedure, which uses a polynomial transformation to generate non-normal data, may provide a more tractable alternative. In this article, EC simulation estimates using the extended (multivariate) Fleishman method and the Gumbel copula are compared. The Fleishman approach is found to be easier to implement than the Gumbel approach and provides comparable results when the correlation and concordance between losses are low. The Fleishman method preserves the first four moments and two measures of dependence (Pearson’s $$\rho $$ρ
and Kendal’s $$\tau $$τ
); the copula approach preserves only the first two moments of the empirical loss distributions.
Journal: Applied Economics
Pages: 1715-1731
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223832
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223832
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Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1715-1731
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Chletsos
Author-X-Name-First: Michael
Author-X-Name-Last: Chletsos
Author-Name: Stelios Roupakias
Author-X-Name-First: Stelios
Author-X-Name-Last: Roupakias
Title: Native-immigrant wage differentials in Greece: discrimination and assimilation
Abstract:
This article applies the Blinder–Oaxaca methodology in order to dissect the average earnings differentials between Greek workers and three different groups of immigrants into a part attributed to differences in characteristics and a part due to discrimination. It also seeks to identify the effect of assimilation (i.e. postmigration human capital) on immigrants’ earnings. We use information about 8429 individuals, of which 1185 are immigrants. The data are drawn from the Greek Labour Force Survey (2009). Our results suggest that discrimination is significantly higher for immigrants originating from non-EU countries than it is for EU foreigners, while it is negative for those who terminated education in Greece. Also, there is evidence that (i) post-migration human capital is a significant determinant of immigrants earnings, (ii) there is limited transferability of skills between sending countries and Greece and (iii) education is the main determinant of the wage gap between natives and immigrants.
Journal: Applied Economics
Pages: 1732-1736
Issue: 17
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223833
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223833
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Handle: RePEc:taf:applec:v:49:y:2017:i:17:p:1732-1736
Template-Type: ReDIF-Article 1.0
Author-Name: Sharif Mozumder
Author-X-Name-First: Sharif
Author-X-Name-Last: Mozumder
Author-Name: M. Humayun Kabir
Author-X-Name-First: M. Humayun
Author-X-Name-Last: Kabir
Author-Name: Michael Dempsey
Author-X-Name-First: Michael
Author-X-Name-Last: Dempsey
Title: Pricing and hedging options with GARCH-stable proxy volatilities
Abstract:
This article considers modelling nonnormality in return with stable Paretian (SP) innovations in generalized autoregressive conditional heteroskedasticity (GARCH), exponential generalized autoregressive conditional heteroskedasticity (EGARCH) and Glosten-Jagannathan-Runkle generalized autoregressive conditional heteroskedasticity (GJR-GARCH) volatility dynamics. The forecasted volatilities from these dynamics have been used as a proxy to the volatility parameter of the Black–Scholes (BS) model. The performance of these proxy-BS models has been compared with the performance of the BS model of constant volatility. Using a cross section of S&P500 options data, we find that EGARCH volatility forecast with SP innovations is an excellent proxy to BS constant volatility in terms of pricing. We find improved performance of hedging for an illustrative option portfolio. We also find better performance of spectral risk measure (SRM) than value-at-risk (VaR) and expected shortfall (ES) in estimating option portfolio risk in case of the proxy-BS models under SP innovations.Abbreviation: generalized autoregressive conditional heteroskedasticity (GARCH), exponential generalized autoregressive conditional heteroskedasticity (EGARCH) and Glosten-Jagannathan-Runkle generalized autoregressive conditional heteroskedasticity (GJR-GARCH)
Journal: Applied Economics
Pages: 6034-6046
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1488057
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488057
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Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6034-6046
Template-Type: ReDIF-Article 1.0
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Han-Chiang Ho
Author-X-Name-First: Han-Chiang
Author-X-Name-Last: Ho
Author-Name: Su-Ping Liu
Author-X-Name-First: Su-Ping
Author-X-Name-Last: Liu
Title: Score-driven Markov-switching EGARCH models: an application to systematic risk analysis
Abstract:
We introduce new Markov-switching (MS) dynamic conditional score (DCS) exponential generalized autoregressive conditional heteroscedasticity (EGARCH) models, to be used by practitioners for forecasting value-at-risk (VaR) and expected shortfall (ES) in systematic risk analysis. We use daily log-return data from the Standard & Poor’s 500 (S&P 500) index for the period 1950–2016. The analysis of the S&P 500 is useful, for example, for investors of (i) well-diversified US equity portfolios; (ii) S&P 500 futures and options traded at Chicago Mercantile Exchange Globex; (iii) exchange traded funds (ETFs) related to the S&P 500. The new MS DCS-EGARCH models are alternatives to of the recent MS Beta-t-EGARCH model that uses the symmetric Student’s t distribution for the error term. For the new models, we use more flexible asymmetric probability distributions for the error term: Skew-Gen-t (skewed generalized t), EGB2 (exponential generalized beta of the second kind) and NIG (normal-inverse Gaussian) distributions. For all MS DCS-EGARCH models, we identify high- and low-volatility periods for the S&P 500. We find that the statistical performance of the new MS DCS-EGARCH models is superior to that of the MS Beta-t-EGARCH model. As a practical application, we perform systematic risk analysis by forecasting VaR and ES.Abbreviation Single regime (SR); Markov-switching (MS); dynamic conditional score (DCS); exponential generalized autoregressive conditional heteroscedasticity (EGARCH); value-at-risk (VaR); expected shortfall (ES); Standard & Poor's 500 (S&P 500); exchange traded funds (ETFs); Skew-Gen-t (skewed generalized t); EGB2 (exponential generalized beta of the second kind); NIG (normal-inverse Gaussian); log-likelihood (LL); standard deviation (SD); partial autocorrelation function (PACF); likelihood-ratio (LR); ordinary least squares (OLS); heteroscedasticity and autocorrelation consistent (HAC); Akaike information criterion (AIC); Bayesian information criterion (BIC); Hannan-Quinn criterion (HQC).
Journal: Applied Economics
Pages: 6047-6060
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1488073
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488073
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Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6047-6060
Template-Type: ReDIF-Article 1.0
Author-Name: Kazumine Kondo
Author-X-Name-First: Kazumine
Author-X-Name-Last: Kondo
Title: Does branch network size influence positively the management performance of Japanese regional banks?
Abstract:
This article investigates whether branch network expansions by Japanese regional banks influence their management performances positively at a time when management environments surrounding regional financial institutions have become increasingly severe due to the population decreases and shrinkage of regional economies. Specifically, the effects of numbers of regional bank branches on their credit businesses and profits are empirically examined. The results indicated that regional banks with more branches can increase their loans and bills discounted as well as their small and mid-sized enterprises loans and bills discounted. Thus, establishing more branches is effective in increasing the total sum of loans and bills discounted by each bank because regional banks with many branches can make contact with more customers. On the other hand, return on assets and return on equity of regional banks with more branches were found to be lower. Therefore, regarding the cost performance of regional banks, establishing too many branches and maintaining branch networks that are too large can have negative effects on regional banks.
Journal: Applied Economics
Pages: 6061-6072
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489114
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489114
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Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6061-6072
Template-Type: ReDIF-Article 1.0
Author-Name: George S. Ford
Author-X-Name-First: George S.
Author-X-Name-Last: Ford
Title: Regulation and investment in the U.S. telecommunications industry
Abstract:
Reversing a two-decade deregulatory trend of telecommunications services, in 2010 U.S. regulators embarked on an aggressive regulatory agenda including, but not limited to, the regulation of high-speed Internet services under the auspices of net neutrality using utility-style regulations codified in the 1930s. Firms, regulators, and analysts feared a reduction in capital spending, contradicting established policy goals of expanding Internet availability and adoption. In this article, a difference-in-differences regression model augmented with randomization inference is applied to government data on capital spending in telecommunications. Large negative effects on investment are found. The estimated effects are robust across changes in estimation periods and model specifications, and multiple tests of the model’s assumptions lend credibility to the findings.
Journal: Applied Economics
Pages: 6073-6084
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489115
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489115
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Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6073-6084
Template-Type: ReDIF-Article 1.0
Author-Name: Huei-Wen Lin
Author-X-Name-First: Huei-Wen
Author-X-Name-Last: Lin
Author-Name: Huei-Fu Lu
Author-X-Name-First: Huei-Fu
Author-X-Name-Last: Lu
Title: A longitudinal assessment on the economic effects of hosting major sporting events
Abstract:
Hosting major sporting events (MSEs) has become a globalized strategy for many countries. This paper is to incorporate event study and dynamic panel data analysis with annual secondary data to examine and clarify the long-term economic effects of host countries that had hosted the Asian Games and the Olympic Games from 1950 to 2014. The results indicate that hosting MSEs to create positive economic effects like the real economic growth rate, investment, employment and international trade may be a myth even for developing countries. The evidences can provide the sport management or authority with longitudinal and comprehensive elaboration for biding or hosting MSEs in the future.
Journal: Applied Economics
Pages: 6085-6099
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489117
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489117
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Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6085-6099
Template-Type: ReDIF-Article 1.0
Author-Name: Zheng Qiao
Author-X-Name-First: Zheng
Author-X-Name-Last: Qiao
Author-Name: Ken Y. Chen
Author-X-Name-First: Ken Y.
Author-X-Name-Last: Chen
Author-Name: Shengmin Hung
Author-X-Name-First: Shengmin
Author-X-Name-Last: Hung
Title: Professionals inside the board room: accounting expertise of directors and dividend policy
Abstract:
Directors’ personal attributes have significant impacts on governance effectiveness. We study whether directors’ accounting expertise affects corporate financial policy and investigate dividend in specific. We construct a dataset of audit committee directors’ accounting expertise for Standard & Poor 500 firms from 2005 to 2012. We first verify directors’ monitoring roles by showing that firms with accounting expert sitting on their audit committees demonstrate stronger accounting conservatism. In our main tests, we find that these firms maintain lower dividend payment level, which are less sensitive to earnings volatility. This suggests directors’ advisory roles in financial policy. We further show that our accounting expertise cannot be subsumed by management ability. In additional test, we further examine the baseline results conditional on analyst forecast error. Our findings highlight the importance of directors’ professional expertise in fulfilling their governance roles.
Journal: Applied Economics
Pages: 6100-6111
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489501
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489501
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Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6100-6111
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Asche
Author-X-Name-First: Frank
Author-X-Name-Last: Asche
Author-Name: Kristin H. Roll
Author-X-Name-First: Kristin H.
Author-X-Name-Last: Roll
Title: Economic inefficiency in a revenue setting: the Norwegian whitefish fishery
Abstract:
The main focus in the inefficiency literature is on suboptimal input use and how this causes increased costs, due to technical and allocative inefficiency. Production or cost functions are then typically used to describe the underlying technology of the firm. The possible revenue loss, due to lower than maximum production levels and suboptimal output mix, has received substantially less attention. By using a revenue function to measure inefficiency, the focus, model and estimation technique presented in this article differ from those of previous studies. A shadow revenue model is used to decompose revenue inefficiency into its technical and allocative components, in which the allocative inefficiency is due to a suboptimal output mix. The approach is illustrated using panel data of Norwegian whitefish trawlers. The results reveal large inefficiencies, with respect to output levels as well as output mix, indicating that this can be an important part of the picture when investigating economic inefficiency. To identify the determinants of revenue inefficiency, we conduct a second-step regression, in which technical and allocative inefficiency is regressed upon a set of explanatory variables. The inefficiencies are partly explained by the management system and fleet structure.
Journal: Applied Economics
Pages: 6112-6127
Issue: 56
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489502
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489502
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Handle: RePEc:taf:applec:v:50:y:2018:i:56:p:6112-6127
Template-Type: ReDIF-Article 1.0
Author-Name: Myriam Ramzy
Author-X-Name-First: Myriam
Author-X-Name-Last: Ramzy
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: Do environment regulations matter for EU-MENA trade?
Abstract:
This study examines the impact of environmental regulations stringency on agricultural trade between European Union (EU) and Middle East and North Africa (MENA countries). Using a gravity model and applying the zero-inflated Poisson (ZIP) model, we estimate the impact of environmental regulations stringency on bilateral agricultural exports between 28 EU and 20 MENA countries during the period 2001–2014. The results have showed that environmental regulations do matter for agricultural trade between both regions because in the presence of excessive zero trade observations, they act as significant fixed export costs that affect the probability of trade. More stringent environmental regulations stimulate innovative efforts in cost-saving green technologies, which increase productivity and positively affect agricultural exports. The results have favoured the revisionist Porter hypothesis (PH), according to which environmental regulations may stimulate innovative efforts, which mitigate the negative effects of higher fixed abatement costs and enhance trade competitiveness.
Journal: Applied Economics
Pages: 4197-4221
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441519
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441519
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Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4197-4221
Template-Type: ReDIF-Article 1.0
Author-Name: Khandokar Istiak
Author-X-Name-First: Khandokar
Author-X-Name-Last: Istiak
Author-Name: Apostolos Serletis
Author-X-Name-First: Apostolos
Author-X-Name-Last: Serletis
Title: Economic policy uncertainty and real output: evidence from the G7 countries
Abstract:
We use economic policy uncertainty index, and impulse response based test to assess the impact of economic policy-related uncertainty on real economic activity. We use monthly data, over the period from 1985:1 to 2015:3, and impulse response functions to investigate how the economies of the G7 countries respond to positive and negative economic policy uncertainty shocks of different magnitudes. We find that economic policy uncertainty is countercyclical, that the effects of uncertainty shocks increase with size and that the responses of real output to positive and negative economic policy uncertainty shocks are country specific. Our research is important for policymaking and in favour of policies that remove economic uncertainty and its negative effects on the economy. We argue that some control over yellow journalism, a transparent tax system and a set of predictable fiscal and monetary policies can minimize the social costs of economic policy uncertainty.
Journal: Applied Economics
Pages: 4222-4233
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441520
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441520
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Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4222-4233
Template-Type: ReDIF-Article 1.0
Author-Name: Julián Andrada-Félix
Author-X-Name-First: Julián
Author-X-Name-Last: Andrada-Félix
Author-Name: Adrian Fernandez-Perez
Author-X-Name-First: Adrian
Author-X-Name-Last: Fernandez-Perez
Author-Name: Simón Sosvilla-Rivero
Author-X-Name-First: Simón
Author-X-Name-Last: Sosvilla-Rivero
Title: Fear connectedness among asset classes
Abstract:
This study investigates the interconnection between five implied volatility indices representative of different financial markets during the period 1 August 2008–29 December 2017. To this end, we first perform a static and dynamic analysis to measure the total volatility connectedness in the entire period (the system-wide approach) using a framework recently proposed by Diebold and Yilmaz. Second, we make use of a dynamic analysis to evaluate both the net directional connectedness for each market and all net pairwise directional connectedness. Our results suggest that a 38.99%, of the total variance of the forecast errors is explained by shocks across markets, indicating that the remainder 61.01% of the variation is due to idiosyncratic shocks. Furthermore, we find that volatility connectedness varies over time, with a surge during periods of increasing economic and financial instability. Finally, we also document frequently switch between a net volatility transmitter and a net volatility receiver role in the five markets under study.
Journal: Applied Economics
Pages: 4234-4249
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441521
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441521
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Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4234-4249
Template-Type: ReDIF-Article 1.0
Author-Name: Tongzhe Li
Author-X-Name-First: Tongzhe
Author-X-Name-Last: Li
Author-Name: Maik Kecinski
Author-X-Name-First: Maik
Author-X-Name-Last: Kecinski
Author-Name: Kent D. Messer
Author-X-Name-First: Kent D.
Author-X-Name-Last: Messer
Title: Behavioural responses to science-based eco-labelling: gold, silver, or bronze
Abstract:
This study uses unique data collected from field experiments to investigate consumer willingness to pay (WTP) for otherwise homogeneous commodities that provide different levels of environmental services. On average, individuals are willing to pay more for products that provide a higher level of ecosystem services. This effect is larger when the label contains symbols that explicitly differentiate the levels. The effect magnitude is further amplified when it contains brief information on the scientific basis for the levels. However, our results also suggest that the WTP premium for the superior product is smaller than the discount in WTP for the inferior product.
Journal: Applied Economics
Pages: 4250-4263
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441522
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441522
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Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4250-4263
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Mazza
Author-X-Name-First: Paolo
Author-X-Name-Last: Mazza
Author-Name: Mikael Petitjean
Author-X-Name-First: Mikael
Author-X-Name-Last: Petitjean
Title: Implicit transaction cost management using intraday price dynamics
Abstract:
Using the Exchange Liquidity Measure, we show that implicit transaction costs exhibit intraday regularities around specific price change signals for a sample of European blue chips publicly quoted on Euronext. Not only transaction costs follow a reverse J-shape throughout the day but they also decrease significantly around specific patterns of price dynamics. By focusing on these signals during the trading day, liquidity traders may detect intraday windows of opportunities during which implicit transaction costs are lower.
Journal: Applied Economics
Pages: 4264-4274
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441523
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441523
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Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4264-4274
Template-Type: ReDIF-Article 1.0
Author-Name: Veysel Avsar
Author-X-Name-First: Veysel
Author-X-Name-Last: Avsar
Title: R&D intensity, financing cost and antidumping
Abstract:
Existing studies have established a stylized fact that worldwide antidumping (AD) activity is concentrated in R&D intensive industries. We build on this issue and analyse the effect of the interaction between financing costs and R&D intensity on AD practices using cross-country cross-industry data. Our findings suggest that R&D intensive industries file disproportionately more AD investigations when financing cost is high.
Journal: Applied Economics
Pages: 4275-4285
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441524
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441524
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Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4275-4285
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoukarim Idi Cheffou
Author-X-Name-First: Abdoukarim Idi
Author-X-Name-Last: Cheffou
Title: Uncertainty assessment in socially responsible and Islamic stock markets in the short and long terms: an ARDL approach
Abstract:
This study measures financial uncertainty for two classes of alternative financial assets (Dow Jones Islamic and Dow Jones Sustainability Indexes) and the conventional US stock market (Dow Jones Industrial Index) for the period of 1999–2017, using an asymmetric exponential GARCH model. Using an ARDL model, we propose an intertemporal dynamic analysis of uncertainty for Islamic and socially responsible stock markets. Our findings show that, first, conventional and ethical investments present high comparable levels of uncertainty for which the dynamics is time-varying. Second, uncertainty in the conventional US stock market has a significant and positive effect on the uncertainty in alternative stock markets. Thus, uncertainty characterizes conventional and ethical stock markets both in the short and long terms. In particular, while the short-term uncertainty of ethical markets might be associated with their characteristics, the long-term aspect of uncertainty for ethical funds is rather associated with the effect of the conventional stock market environment. Although these findings show mean-reversion and uncertainty spillovers from the alternative stock markets to the conventional US one, they suggest lack of safety and certainty for investments in ethic markets, which remain fragile and closely dependent on the conventional market.
Journal: Applied Economics
Pages: 4286-4294
Issue: 39
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441525
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441525
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Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4286-4294
Template-Type: ReDIF-Article 1.0
Author-Name: Michael R. Strain
Author-X-Name-First: Michael R.
Author-X-Name-Last: Strain
Title: Do volatile firms pay volatile earnings? Evidence from linked worker-firm data
Abstract:
Despite the importance of earnings instability, little is known about its correlates or causes. This article seeks to better understand earnings instability by studying whether volatile firms pay volatile earnings and is the first to directly test the relationship using US linked employer–employee data. The article finds a positive and statistically significant relationship using within-firm variation. In addition, this article finds that lower earning workers are passed significantly more volatility from their employing firms than are higher earning workers.
Journal: Applied Economics
Pages: 4299-4309
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279273
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279273
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Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4299-4309
Template-Type: ReDIF-Article 1.0
Author-Name: Satis C. Devkota
Author-X-Name-First: Satis C.
Author-X-Name-Last: Devkota
Author-Name: Bishwa Koirala
Author-X-Name-First: Bishwa
Author-X-Name-Last: Koirala
Author-Name: Kamal P. Upadhyaya
Author-X-Name-First: Kamal P.
Author-X-Name-Last: Upadhyaya
Title: Calculation and decomposition of income inequality in low- and middle-income countries: a survey data analysis
Abstract:
This article estimates income inequality in a sample of four low- and middle-income (LMI) countries namely; Albania, Nepal, Tajikistan and Tanzania using the household survey data – Nepal Living Standard Measurement Survey Second. First, we estimate the income generation function for each country and calculate the income inequality using Gini index (GI). Second, we decompose the income Gini into the determinants of income generation functions. Based on the decomposition result, socio-economic factors are the most important determinants of income inequality followed by geographic factors. Demographic factors have the least effect on income inequality in all four countries. Third, we propose a new method to quantify the effect of change in each covariate of income generation function on income Gini. That allows us to quantify the effects of change in specific policy such as increase in investment in schooling or public health to specific group of the population in society on income inequality. A carefully chosen, integrated policy can significantly reduce inequality in all four countries under study.
Journal: Applied Economics
Pages: 4310-4320
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282141
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282141
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Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4310-4320
Template-Type: ReDIF-Article 1.0
Author-Name: Nawel Ayadi
Author-X-Name-First: Nawel
Author-X-Name-Last: Ayadi
Author-Name: Corina Paraschiv
Author-X-Name-First: Corina
Author-X-Name-Last: Paraschiv
Author-Name: Eric Vernette
Author-X-Name-First: Eric
Author-X-Name-Last: Vernette
Title: Increasing consumer well-being: risk as potential driver of happiness
Abstract:
This article investigates the relation between risk and individual well-being. We propose a theoretical model of happiness that makes a distinction between ex ante evaluations of happiness and ex post assessments. The main assumptions of the model are tested through three studies based on anchoring vignettes. We show that, even if, ex ante, consumers fear high risk and do not associate it to a high level of happiness, their ex post evaluation of well-being is generally higher when identical consequences result from a high-risk situation than from a low-risk situation. Control over risk-taking reinforces the gap between ex ante and ex post measures of happiness. Thus, our article provides empirical evidence about a positive relation between risk and individual well-being, suggesting that risky experiences have the potential to increase consumer well-being.
Journal: Applied Economics
Pages: 4321-4335
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282142
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282142
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Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4321-4335
Template-Type: ReDIF-Article 1.0
Author-Name: Lakshman Alles
Author-X-Name-First: Lakshman
Author-X-Name-Last: Alles
Author-Name: Louis Murray
Author-X-Name-First: Louis
Author-X-Name-Last: Murray
Title: Asset pricing and downside risk in the Australian share market
Abstract:
As downside risk has been identified as a separate risk exposure to investors, we investigate whether downside beta and co-skewness exposure impact on the return to investors in Australian equities. Although considered as a developed market, the Australian Securities Exchange merits separate investigation, as it is small and concentrated on some sectors, when compared with the major developed markets. As realized returns are a proxy for expected returns, we separately examine conditional returns in upturn and downturn periods. We find that both downside risks are separately priced by investors, and that our results are unaffected by the inclusion of a range of company characteristics. We subsequently confirm that returns to each downside risk are not related. In robustness tests, we conclude that the return to downside risk cannot be explained by a size, a value, or a momentum premium. Although it also has explanatory power, the inclusion of a leverage factor also does not reduce the explanatory power of downside risk.
Journal: Applied Economics
Pages: 4336-4350
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282143
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282143
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Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4336-4350
Template-Type: ReDIF-Article 1.0
Author-Name: Vo Phuong Mai Le
Author-X-Name-First: Vo Phuong Mai
Author-X-Name-Last: Le
Author-Name: David Meenagh
Author-X-Name-First: David
Author-X-Name-Last: Meenagh
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Title: Tracing the causes of the banking crisis
Abstract:
We add the Bernanke–Gertler–Gilchrist model to a modified version of the Smets–Wouters model of the U.S. in order to explore the causes of the banking crisis. The innovation of this article is estimating the model using unfiltered data allowing for non-stationary shocks in order to replicate how the model predicts the crisis. We find that ‘traditional shocks’ account for most of the fluctuations in macroeconomic variables; the non-stationarity of the productivity shock plays a key role. Crises occur when there is a ‘run’ of bad shocks; based on this sample they occur on average once every 64 years and when they occur around 10% are accompanied by financial crisis. Financial shocks on their own, even when extreme, do not cause crises – provided the government acts swiftly to counteract such a shock as happened in this sample.
Journal: Applied Economics
Pages: 4351-4362
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282145
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282145
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Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4351-4362
Template-Type: ReDIF-Article 1.0
Author-Name: Liqiu Zhao
Author-X-Name-First: Liqiu
Author-X-Name-Last: Zhao
Author-Name: Xianguo Yao
Author-X-Name-First: Xianguo
Author-X-Name-Last: Yao
Title: Does local social capital deter labour migration? Evidence from rural China
Abstract:
This article empirically investigates the effect of local social capital on job-related migration in rural China. A household’s social ties in the region of origin, which we refer to as local social capital, may deter migration, because local social capital is location specific and an individual cannot benefit from it if s/he migrates. In view of Chinese gift-giving culture, we use household expenses on wedding gifts for family members outside household, relatives and friends as a proxy for local social networks. Based on the data from the China Health and Nutrition Survey, we find that in rural China local social networks have a significantly negative effect on migration. The IV results suggest that a 10% increase in wedding gifts expenses results in roughly a 1.1 percentage points decrease in migration probability.
Journal: Applied Economics
Pages: 4363-4377
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282146
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282146
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Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4363-4377
Template-Type: ReDIF-Article 1.0
Author-Name: Valentina Peruzzi
Author-X-Name-First: Valentina
Author-X-Name-Last: Peruzzi
Title: Does family ownership structure affect investment-cash flow sensitivity? Evidence from Italian SMEs
Abstract:
The aim of this article is to investigate whether family control, family management and family ownership concentration affect the investment-cash flow sensitivity of small- and medium-sized enterprises (SMEs). By analysing a sample of Italian SMEs for the period 2004–2013, I find that family-owned businesses are significantly associated with higher investment-cash flow dependence. This relation, however, is found to be driven by two distinct factors: (i) the presence of a highly concentrated family ownership (ownership concentration channel) and (ii) the active involvement of the family in the business (family management channel).
Journal: Applied Economics
Pages: 4378-4393
Issue: 43
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1282147
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1282147
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Handle: RePEc:taf:applec:v:49:y:2017:i:43:p:4378-4393
Template-Type: ReDIF-Article 1.0
Author-Name: Florian Fizaine
Author-X-Name-First: Florian
Author-X-Name-Last: Fizaine
Author-Name: Sondès Kahouli
Author-X-Name-First: Sondès
Author-X-Name-Last: Kahouli
Title: On the power of indicators: how the choice of fuel poverty indicator affects the identification of the target population
Abstract:
In light of the creation of the EU Energy Poverty Observatory (EPOV) in January 2018 and the increase in debates on how fuel poverty is measured, we propose a critical analysis of fuel poverty indicators and demonstrate that choosing a given indicator is central to the identification of the fuel-poorpopulation.First, we conducted an inter-indicator analysis to show how profiles of fuel-poor households vary depending on the indicator selected. We designed a multidimensional approach based on a multiple correspondence analysis and a hierarchical and partitioning clustering analysis to study characteristics of fuel-poor households. We highlight the difficulty of identifying a fuel-poor ‘typical profile’ and show that the composition of the population depends on the choice of the indicator.Second, we applied an intra-indicator analysis using two objective expenditure-based indicators with thresholds. In particular, we conducted a sensitivity analysis based on a logit model including variables describing household and dwelling characteristics. We show that the profiles of fuel-poor households as well as the drivers of fuel poverty vary considerably with the chosen threshold level.Given these findings, we stress the need to review how we currently rely on conventional fuel poverty indicators to identify target groups and give some recommendations.
Journal: Applied Economics
Pages: 1081-1110
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524975
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524975
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Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1081-1110
Template-Type: ReDIF-Article 1.0
Author-Name: Pascal L. Ghazalian
Author-X-Name-First: Pascal L.
Author-X-Name-Last: Ghazalian
Author-Name: Frederick Amponsem
Author-X-Name-First: Frederick
Author-X-Name-Last: Amponsem
Title: The effects of economic freedom on FDI inflows: an empirical analysis
Abstract:
There is a regular emphasis on the significant role of inward Foreign Direct Investment (FDI) in promoting economic growth. This favourable relationship has induced many governments to adopt policies intended to increase FDI inflows and, thereby, to create conducive business and economic conditions for Multinational Enterprises (MNEs). This paper examines the effects of Economic Freedom (EF) and its sub-components reflecting the Quality of Institutions (QIs) on FDI inflows, using indices derived from the Fraser Institute and from the Heritage Foundation. The empirical analysis is carried out for a panel dataset using different econometric methodologies and empirical specifications. The results underline positive effects of EF on FDI inflows. They reveal that EF sub-components have varying impacts on FDI inflows, where rule of law, market openness, and less-restrictive regulatory environment stand out as the major FDI-promoting institutional factors. Also, there is an empirical evidence that the effects of EF sub-components on FDI inflows exhibit variations through the economic characteristics of the host countries and across geo-economic regions. The results suggest that governments should pursue EF-improving policies, which should be tailored according to the economic and geo-economic characteristics of the host countries, to increase FDI inflows.
Journal: Applied Economics
Pages: 1111-1132
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524979
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524979
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Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1111-1132
Template-Type: ReDIF-Article 1.0
Author-Name: Jingze Jiang
Author-X-Name-First: Jingze
Author-X-Name-Last: Jiang
Author-Name: T. Randall Fortenbery
Author-X-Name-First: T. Randall
Author-X-Name-Last: Fortenbery
Title: El Niño and La Niña induced volatility spillover effects in the U.S. soybean and water equity markets
Abstract:
This paper examined links between U.S. soybean prices and the Dow Jones U.S. Water Index (DJUSWU). We particularly studied the impact of El Niño and La Niña events on price risk spillovers. Results showed that La Niña significantly increases the linkages between soybean and water equity markets. Based on this, we identified a new soybean hedge strategy that would be possible if a futures contract for the DJUSWU existed. This new strategy improves on the effectiveness of both a conventional naïve soybean market hedge, and a traditional time-varying hedge. The findings can be used to assist soybean agents in managing increased market risks associated with extreme weather events.
Journal: Applied Economics
Pages: 1133-1150
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524980
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524980
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Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1133-1150
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Poirine
Author-X-Name-First: Bernard
Author-X-Name-Last: Poirine
Author-Name: Vincent Dropsy
Author-X-Name-First: Vincent
Author-X-Name-Last: Dropsy
Title: Diaspora growth and aggregate remittances: an inverted-U relationship?
Abstract:
This paper presents a model in which remittances stem from a decision made jointly by a family coalition of multiple migrants and non-migrants, allowing two alternative interpretations: migrants’ altruism or bargaining power. The model predicts that aggregate remittances first increase, reach a maximum, and then decrease as the emigration ratio (migrants/non-migrants) increases. An alternative model of loan repayment arrangement between each migrant and her parents, predicts that aggregate remittances grow monotonously with the emigration ratio. Testing both predictions on a macroeconomic bilateral dataset we find evidence in favour of the first model and an inverted-U relationship between aggregate remittances and the emigration ratio, with a maximum reached at a value of 0.5. Since many small ‘MIRAB’ island nations are close to or even above this threshold value, this finding is highly relevant for them since they may experience declining aggregate remittances as the diaspora grows further.
Journal: Applied Economics
Pages: 1151-1165
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524981
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524981
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Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1151-1165
Template-Type: ReDIF-Article 1.0
Author-Name: K. Hervé Dakpo
Author-X-Name-First: K. Hervé
Author-X-Name-Last: Dakpo
Author-Name: Yann Desjeux
Author-X-Name-First: Yann
Author-X-Name-Last: Desjeux
Author-Name: Philippe Jeanneaux
Author-X-Name-First: Philippe
Author-X-Name-Last: Jeanneaux
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Title: Productivity, technical efficiency and technological change in French agriculture during 2002-2015: a Färe-Primont index decomposition using group frontiers and meta-frontier
Abstract:
The objective of the article is to assess productivity change in French agriculture during 2002–2015; namely, total factor productivity (TFP) change and its components – technological change and efficiency change. For this, we use the Färe-Primont index which verifies the multiplicatively completeness property and is also transitive, allowing for multi-temporal and -lateral comparisons. We investigate the extent of heterogeneity within each type of farming sub-sample in terms of TFP change, with the help of the Herfindahl-Hirschman index (HHI). In addition, to compare the technologies among the five types of farming considered, we extend our analysis to the meta-frontier framework. Results indicate that during 2002–2015, all farms experienced TFP progress. The smallest average increase was experienced by the dairy farms and the largest by the field crop farms and the beef farms. The latter had the strongest technological progress but a deterioration in efficiency, while the opposite was found for field crop farms. The analysis of HHI reveals that sheep or goat farms are the most homogenous in terms of the direction of TFP change experienced over the period 2002–2015. The meta-frontier analysis shows that field crop farms’ technology is the most productive of all the types of farming.
Journal: Applied Economics
Pages: 1166-1182
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524982
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524982
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Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1166-1182
Template-Type: ReDIF-Article 1.0
Author-Name: Eva Barteková
Author-X-Name-First: Eva
Author-X-Name-Last: Barteková
Author-Name: Thomas H. W Ziesemer
Author-X-Name-First: Thomas H. W
Author-X-Name-Last: Ziesemer
Title: The impact of electricity prices on foreign direct investment: evidence from the European Union
Abstract:
We examine the impact of electricity price variation on net FDI (%GDP) inflows in countries of the European Union. We use panel data of 27 EU countries for a period of 2003 – 2013. We show that electricity prices of south-western and north-eastern EU countries did not converge to one price until now. Dynamic panel data analysis using system GMM shows that besides unit labour costs, tax rates and competitive disadvantage in secondary education, also higher electricity prices reduce countries’ ability to attract FDI. The immediate effects are statistically significant across both sub-regions analysed: in the short run, a 10% increase in electricity prices leads to a decrease in net FDI inflows as a share of GDP by 0.4 percentage points for the south-western and 0.33 for the north-eastern region. In the long run, the response is 0.60 percentage points for south-western and 0.48 for north-eastern regions. Policies should aim at reducing electricity market price differences on the European level through investment in transborder transmission capacity; reductions in FDI, when environmental policy increases after-tax electricity prices, should be countered by other tax reductions as well as harmonization of property rights, absence of corruption and labour market regulations at best-practice level.
Journal: Applied Economics
Pages: 1183-1198
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1524983
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524983
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Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1183-1198
Template-Type: ReDIF-Article 1.0
Author-Name: Joyce Hsieh
Author-X-Name-First: Joyce
Author-X-Name-Last: Hsieh
Author-Name: Ting-Cih Chen
Author-X-Name-First: Ting-Cih
Author-X-Name-Last: Chen
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Title: Credit constraints and growth gains from governance
Abstract:
This paper contributes to the governance literature by analyzing the specific mechanisms through which governance affects economic growth: The credit channel. Specifically, it investigates the growth impact of governance on industries with different levels of dependence on external finance. Better governance mitigates credit market imperfections by increasing transparency and accountability and reducing government-policy distortions, promoting productive investment and entrepreneurship development, with a disproportionate impact on sectors that depend on external finance. This paper indeed finds that countries with well-functioning governments are better at providing growth and investment environments for the expansion of industries that rely heavily on external finance and the formation of new establishments in these industries, when controlling for financial development. These results are robust to possible reverse causality, different specifications, subsamples and outliers.
Journal: Applied Economics
Pages: 1199-1211
Issue: 11
Volume: 51
Year: 2019
Month: 3
X-DOI: 10.1080/00036846.2018.1527009
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1527009
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Handle: RePEc:taf:applec:v:51:y:2019:i:11:p:1199-1211
Template-Type: ReDIF-Article 1.0
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Mark J. Holmes
Author-X-Name-First: Mark J.
Author-X-Name-Last: Holmes
Author-Name: Bong Soo Lee
Author-X-Name-First: Bong Soo
Author-X-Name-Last: Lee
Title: The asymmetric relationship between executive earnings management and compensation: a panel threshold regression approach
Abstract:
Prior research shows that chief executive officers (CEOs) are rewarded for their earnings management. We re-examine this issue using a panel threshold regression approach, which allows the effect of earnings management on the CEO compensation to change across the level of earnings management and CEO compensation. Our results show that the effect of CEOs’ discretionary accounting choices on their compensation is not homogeneous across various degrees of earnings management and compensation. In particular, for firms with moderate (inordinate) levels of earnings management and CEO compensation, earnings management is rewarded (penalized).
Journal: Applied Economics
Pages: 5525-5545
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181707
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181707
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Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5525-5545
Template-Type: ReDIF-Article 1.0
Author-Name: Sandra Hanslin Grossmann
Author-X-Name-First: Sandra
Author-X-Name-Last: Hanslin Grossmann
Author-Name: Sarah M. Lein
Author-X-Name-First: Sarah M.
Author-X-Name-Last: Lein
Author-Name: Caroline Schmidt
Author-X-Name-First: Caroline
Author-X-Name-Last: Schmidt
Title: Exchange rate and foreign GDP elasticities of Swiss exports across sectors and destination countries
Abstract:
This article uses a detailed breakdown of Swiss trade flows to identify how the impact of the two main determinants of Switzerland’s exports – foreign demand and the real exchange rate – varies across sectors and export destinations. Our main findings are that (i) both foreign demand and exchange rate elasticities vary substantially across both export sectors and export destinations. (ii) Foreign demand trends are more important for structural considerations than the exchange rate. This is due to the fact that exports of the two largest export sectors are relatively sensitive to long-run foreign demand developments while they are relatively insensitive to changes in the exchange rate. (iii) The sectoral structure of Switzerland’s exports has shifted towards goods that have a lower short-run demand elasticity and a higher long-run demand elasticity. Goods exports are thus less influenced by business cycle fluctuations while they benefit more from long-term growth trends. (iv) The export share of sectors with a relatively low exchange rate elasticity has increased. However, this result is mainly driven by the strong rise in exports of chemicals and pharmaceuticals as well as precision instruments and watches, which are also the two important sectors responsible for the Swiss trade surplus.
Journal: Applied Economics
Pages: 5546-5562
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181828
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181828
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Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5546-5562
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Bonnet
Author-X-Name-First: Jean
Author-X-Name-Last: Bonnet
Author-Name: Sylvie Cieply
Author-X-Name-First: Sylvie
Author-X-Name-Last: Cieply
Author-Name: Marcus Dejardin
Author-X-Name-First: Marcus
Author-X-Name-Last: Dejardin
Title: Credit rationing or overlending? An exploration into financing imperfection
Abstract:
Small and new firms are deemed to be unable to obtain sufficient bank loans. This idea finds a strong theoretical support in credit rationing theory. However, this is vigorously challenged by De Meza and Webb (1987, 2000) suggesting that firms can benefit from an excess of credit, i.e. overlending. Credit rationing or overlending? The contribution of this empirical article is twofold: to our knowledge, it is the first to make an attempt in measuring the relative importance of these two types of financing imperfection and to explore factors leading to one or the other. We exploit a rich panel data set on the access to bank credit for new French businesses during the mid-1990s. Our results show that credit rationing was not highly spread among French new firms. The story told by De Meza and Webb (1987) appears to be a much more realistic model. In addition, we identify factors, linked to the starter, the project or the industry, that are closely associated with credit rationing and/or overlending. Most factors enter into a consistent relation: when they are positively (negatively) associated with credit rationing, they are negatively (positively) associated with overlending.
Journal: Applied Economics
Pages: 5563-5580
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181829
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181829
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Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5563-5580
Template-Type: ReDIF-Article 1.0
Author-Name: H. Lasram
Author-X-Name-First: H.
Author-X-Name-Last: Lasram
Author-Name: Didier G. Laussel
Author-X-Name-First: Didier G.
Author-X-Name-Last: Laussel
Title: Is firm-sponsored training a palliative? A common agency approach
Abstract:
We analyse the issue of firm-sponsored training under product market imperfections. In this setting, qualification becomes a public good for firms when their profits are increasing in the stock of skilled workers but remains a private good to students/workers. Students have to pay a tuition fee but at the same time firms sponsor education: universities sell training to both. We prove that the proportion of skilled workers is larger in more competitive economies/industries while the share of firms in the financing of training is a monotonically decreasing function of the degree of competition. An increase of the latter indeed increases the equilibrium skilled wage while reducing its sensitivity to an increase of the supply of skilled workers. The firms’ aggregate expenditures on training per worker are nevertheless a nonmonotonic function of the competitiveness of the economy.
Journal: Applied Economics
Pages: 5581-5592
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181830
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181830
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Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5581-5592
Template-Type: ReDIF-Article 1.0
Author-Name: Shahnaz Abdullah
Author-X-Name-First: Shahnaz
Author-X-Name-Last: Abdullah
Author-Name: Shakil Quayes
Author-X-Name-First: Shakil
Author-X-Name-Last: Quayes
Title: Do women borrowers augment financial performance of MFIs?
Abstract:
There is some consensus that depth of outreach and financial performance of Microfinance Institutions (MFI) are positively correlated. A majority of microcredit borrowers are women and since the prevalence of female borrowers is even greater among the very poor, there should be a positive correlation between female borrowers and financial performance. Most of the MFIs target women as preferred borrowers. However, no study to date has investigated the relationship between targeting women and MFI’s sustainability with respect to profitability and yield. Utilizing a panel of 892 MFIs over a period of 10 years, this study shows that increased proportion of women borrowers has a statistically significant positive impact on yield and financial performance of MFIs. Consequently, this article also analyses the implication as to whether female borrowers have better repayment rate than male borrowers.
Journal: Applied Economics
Pages: 5593-5604
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181831
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181831
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Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5593-5604
Template-Type: ReDIF-Article 1.0
Author-Name: Akihiro Omura
Author-X-Name-First: Akihiro
Author-X-Name-Last: Omura
Author-Name: Richard Chung
Author-X-Name-First: Richard
Author-X-Name-Last: Chung
Author-Name: Neda Todorova
Author-X-Name-First: Neda
Author-X-Name-Last: Todorova
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: Relative scarcity and convenience yield: evidence from non-ferrous metals
Abstract:
We study the relationship between convenience yield and relative scarcity in the non-ferrous metal market for the period January 2000–March 2015. We identify various sets of economic relationships for six major base metals, namely, aluminium, copper, lead, nickel, tin and zinc. Our bivariate and multivariate VARs and associated Granger-causality test results generally support the existence of a positive relationship between convenience yields of base metals and our relative scarcity measure. Furthermore, the time-varying characteristics observed in the results, especially during contango and backwardation periods, provide useful information to market players in developing inventory strategies.
Journal: Applied Economics
Pages: 5605-5624
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181832
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181832
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Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5605-5624
Template-Type: ReDIF-Article 1.0
Author-Name: Roman Horvath
Author-X-Name-First: Roman
Author-X-Name-Last: Horvath
Author-Name: Dominika Katuscakova
Author-X-Name-First: Dominika
Author-X-Name-Last: Katuscakova
Title: Transparency and trust: the case of the European Central Bank
Abstract:
We examine how the transparency of the European Central Bank’s monetary policy affects the amount of trust that the citizens of the European Union have in this institution. We use nearly half a million individual responses from the European Commission’s Eurobarometer survey from 2000 to 2011 and estimate probit regressions with sample selection. We find that transparency exerts a non-linear effect on trust. Transparency increases trust, but only up to a certain point; too much transparency harms trust. This result is robust to controlling for a number of macroeconomic conditions, financial stability transparency measures, and economic and socio-demographic characteristics of respondents, including examining respondents in European Union countries that do not use the euro and addressing clustering issues.
Journal: Applied Economics
Pages: 5625-5638
Issue: 57
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1181833
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1181833
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Handle: RePEc:taf:applec:v:48:y:2016:i:57:p:5625-5638
Template-Type: ReDIF-Article 1.0
Author-Name: Sandrine Kablan
Author-X-Name-First: Sandrine
Author-X-Name-Last: Kablan
Author-Name: Olfa Kaabia
Author-X-Name-First: Olfa
Author-X-Name-Last: Kaabia
Title: Transmission channels of international financial crises to African stock markets: the case of the euro sovereign debt crisis
Abstract:
This article investigates the effects of the European sovereign debt crisis on African stock markets within a Bayesian shrinkage VAR framework. This method allows us to consider both North African and Sub-Saharan African stock markets, and provides a flexible parsimonious specification. The results reveal varying reactions of the impulse response functions. The most exposed African stock markets are those of Egypt, South Africa and Mauritius, while the least affected stock market is, surprisingly, that of Ivory Coast. Our analysis shows that, in addition to direct transmission, several macroeconomic and market channels, such as commodities, exports, and exchange rates, are relevant. Specifically, countries with strong commercial links to European countries will be most impacted by the crisis. The severity of transmission also depends on the country’s dependence on commodities.
Journal: Applied Economics
Pages: 1992-2011
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1383597
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1383597
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Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:1992-2011
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Fayyaz Sheikh
Author-X-Name-First: Muhammad Fayyaz
Author-X-Name-Last: Sheikh
Author-Name: Syed Zulfiqar Ali Shah
Author-X-Name-First: Syed Zulfiqar Ali
Author-X-Name-Last: Shah
Author-Name: Saeed Akbar
Author-X-Name-First: Saeed
Author-X-Name-Last: Akbar
Title: Firm performance, corporate governance and executive compensation in Pakistan
Abstract:
This study examines the effects of firm performance and corporate governance on chief executive officer (CEO) compensation in an emerging market, Pakistan. Using a more robust Generalized Method of Moments (GMM) estimation approach for a sample of non-financial firms listed at Karachi Stock Exchange over the period 2005–2012, we find that both current- and previous-year accounting performances has positive influence on CEO compensation. However, stock market performance does not appear to have a positive impact on executive compensation. We further find that ownership concentration is positively related with CEO compensation, indicating some kind of collusion between management and largest shareholder to get personal benefits. Inconsistent with agency theory, CEO duality appears to have a negative influence, while board size and board independence have no convincing relationship with CEO compensation, indicating board ineffectiveness in reducing CEO entrenchment. The results of dynamic GMM model suggest that CEO pay is highly persistent and takes time to adjust to long-run equilibrium.
Journal: Applied Economics
Pages: 2012-2027
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1386277
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1386277
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Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2012-2027
Template-Type: ReDIF-Article 1.0
Author-Name: Bradley J. Rickard
Author-X-Name-First: Bradley J.
Author-X-Name-Last: Rickard
Author-Name: Olivier Gergaud
Author-X-Name-First: Olivier
Author-X-Name-Last: Gergaud
Author-Name: Shuay-Tsyr Ho
Author-X-Name-First: Shuay-Tsyr
Author-X-Name-Last: Ho
Author-Name: Florine Livat
Author-X-Name-First: Florine
Author-X-Name-Last: Livat
Title: Trade liberalization in the presence of domestic regulations: public policies applied to EU and U.S. wine markets
Abstract:
Wine is the highest valued product in the agricultural, food, and beverage sector traded between the United States and the European Union (EU) and wine faces a range of tariffs that are differentiated by country and product category. In addition, the production of wine grapes is heavily regulated within the EU and there are complicated state-level policies in the United States designed to limit the retail availability of wine. There continues to be economic and political pressure for reform to the tariffs between the United States and the EU, and to the domestic regulations in each region. We carefully develop parameters to characterize the effects of tariffs and domestic regulations that affect production and consumption of wine in the two regions. Simulation results show that reductions in tariffs would have relatively small effects in EU and U.S. wine markets, whereas reductions in EU domestic policies that affect wine grape production would have much larger trade and welfare implications.
Journal: Applied Economics
Pages: 2028-2047
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1386278
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1386278
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Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2028-2047
Template-Type: ReDIF-Article 1.0
Author-Name: John Considine
Author-X-Name-First: John
Author-X-Name-Last: Considine
Author-Name: Liam Gallagher
Author-X-Name-First: Liam
Author-X-Name-Last: Gallagher
Title: Competitive balance in a quasi-double knockout tournament
Abstract:
In 2001, the All-Ireland Gaelic Football competition changed from being a singleknockout tournament to a quasi-double knockout competition. Similar natural experiments in economics and operational research theory suggest such a change should reduce the competitive balance in the competition. Using a Hirschmann–Herfindahl Index measure of concentration and a bootstrapping approach, we confirm that the new structure leads to a less competitive outcome and, importantly, this outcome is less uncertain. Our bootstrapped results show that in the long run, with larger samples, there is less competitive balance in the new competition structure than in the older structure competition structure. Finally, we also consider a stochastic dominance approach to evaluating the change in tournament structure, but the low power due to the presence of ties in our small sample leads to an inconclusive outcome.
Journal: Applied Economics
Pages: 2048-2055
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1386279
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1386279
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Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2048-2055
Template-Type: ReDIF-Article 1.0
Author-Name: J. Carles Maixé-Altés
Author-X-Name-First: J. Carles
Author-X-Name-Last: Maixé-Altés
Author-Name: Emma M. Iglesias
Author-X-Name-First: Emma M.
Author-X-Name-Last: Iglesias
Title: Banking, currency, stock market and debt crises in Spain, 1850–1995
Abstract:
What type of crisis is generated when debt increases? We extend the literature by framework by introducing currency and stock market crises in the analysis. We apply our proposal to the case of Spain, since this is a country that has experienced a very important amount of financial crises from the nineteenth century onwards. We find the same results as the previous literature for the determinants of banking and debt crises but substituting external and public debt with perpetual debt and where perpetual debt has a less important role than crises in the private sector. Moreover, we find evidence in favour of the hypothesis that currency crises depend strongly and positively on financial centre crises and negatively and mildly on perpetual debt. We justify the negative relalionship due to an inflation tax. We also find evidence in favour of the hypothesis that stock market crises depend only positively and strongly on financial centre crises.
Journal: Applied Economics
Pages: 2056-2069
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1386280
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1386280
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Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2056-2069
Template-Type: ReDIF-Article 1.0
Author-Name: Gulcan Onel
Author-X-Name-First: Gulcan
Author-X-Name-Last: Onel
Title: Adjustment costs and threshold effects in factor demand relationships
Abstract:
It has been recently argued that producers may not respond to every input price change in the way that a linear factor demand model would predict. This lumpy response is due to adjustment costs that are inherent in the act of adjusting the mix of inputs applied in the underlying production technologies. This study aims to provide a solid conceptual framework for these nonlinearities in factor demand relationships. Industry-specific implications of convex and non-convex adjustment costs for the linearity of the factor demand relationships as well as price and substitution elasticities are explored. A two-regime threshold system of factor demand equations is estimated for several manufacturing industries in the United States. Empirical results suggest significant threshold effects in the factor demand relationships in most nondurable goods sectors. The size and the nature of thresholds depend upon industry characteristics, including input composition and (non)convexity of underlying adjustment costs. Complete matrices of price and substitution elasticities for each industry are derived using estimates of threshold factor demand systems. Discussion of two contrasting cases in greater detail sheds light on how the effect of price shocks on factor demand relationships varies across industries with different adjustment cost structures.
Journal: Applied Economics
Pages: 2070-2086
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1388908
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1388908
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Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2070-2086
Template-Type: ReDIF-Article 1.0
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: M. I. M. Wahab
Author-X-Name-First: M. I. M.
Author-X-Name-Last: Wahab
Author-Name: Jing Liu
Author-X-Name-First: Jing
Author-X-Name-Last: Liu
Author-Name: Li Liu
Author-X-Name-First: Li
Author-X-Name-Last: Liu
Title: Is economic policy uncertainty important to forecast the realized volatility of crude oil futures?
Abstract:
In this research, we first investigate whether economic policy uncertainty (EPU) index can increase the HAR-RV-type models’ forecast accuracy. In addition, we explore how EPU index can be effectively used to gain larger economic values in the oil futures market. To this end, this research provides a new perspective on setting thresholds for EPU and examines whether these thresholds can help improve both the forecast accuracy and economic values. Empirical results suggest that the HAR-RV-type models including EPU can generate more accurate forecasts and economic values. The HAR-RV-type models including above-threshold EPU can further improve the forecast accuracy and yield higher economic values by setting specific thresholds for a range of horizons. The findings highlight the importance of EPU and effective way of using EPU in risk management and portfolio strategies that is crucial for investors and policymakers.
Journal: Applied Economics
Pages: 2087-2101
Issue: 18
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1388909
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1388909
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Handle: RePEc:taf:applec:v:50:y:2018:i:18:p:2087-2101
Template-Type: ReDIF-Article 1.0
Author-Name: Paul André
Author-X-Name-First: Paul
Author-X-Name-Last: André
Author-Name: Dionysia Dionysiou
Author-X-Name-First: Dionysia
Author-X-Name-Last: Dionysiou
Author-Name: Ioannis Tsalavoutas
Author-X-Name-First: Ioannis
Author-X-Name-Last: Tsalavoutas
Title: Mandated disclosures under IAS 36 Impairment of Assets and IAS 38 Intangible Assets: value relevance and impact on analysts’ forecasts
Abstract:
Drawing on a large sample of European firms, we examine whether variant compliance levels with mandated disclosures under IAS 36 Impairment of Assets and IAS 38 Intangible Assets are value relevant and affect analysts’ forecasts. Our results indicate a mean (median) compliance level of about 84% (86%) but high variation among firms and disclosure levels regarding IAS 36 being much lower than those regarding IAS 38. In depth, analysis reveals that non-compliance relates mostly to proprietary information and information that reveals managers’ judgment and expectations. Furthermore, we find a positive (negative) relationship between average disclosure levels and market values (analysts’ forecast dispersion). Results, however, hold more specifically for disclosures related to IAS 36, and these also improve analysts’ forecast accuracy. Our findings add knowledge regarding the economic consequences of mandatory disclosures, have an appeal to regulators and financial statement preparers and reflect on the IASB’s concerns to increase the guidance and principles on presentation and disclosure.
Journal: Applied Economics
Pages: 707-725
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340570
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340570
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Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:707-725
Template-Type: ReDIF-Article 1.0
Author-Name: Yolanda Ubago Martínez
Author-X-Name-First: Yolanda
Author-X-Name-Last: Ubago Martínez
Author-Name: Pedro Pascual Arzoz
Author-X-Name-First: Pedro Pascual
Author-X-Name-Last: Arzoz
Author-Name: Belén Iráizoz Apezteguía
Author-X-Name-First: Belén Iráizoz
Author-X-Name-Last: Apezteguía
Title: Does decentralization contribute to efficiency? Evidence from OECD countries
Abstract:
This article provides evidence on the relationship between fiscal decentralization and technical efficiency. We begin the first stage of this study with a data envelopment analysis to obtain technical efficiency estimates for a sample of 23 OECD countries over the period 1992–2009. In a second stage, we explore the effects of fiscal decentralization and other control variables on technical efficiency. The results including all the control variables reveal a statistically significant negative relationship between fiscal decentralization of public expenditure and technical efficiency.
Journal: Applied Economics
Pages: 726-742
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340572
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340572
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Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:726-742
Template-Type: ReDIF-Article 1.0
Author-Name: Evangelia Kasimati
Author-X-Name-First: Evangelia
Author-X-Name-Last: Kasimati
Author-Name: Nikolaos Veraros
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Veraros
Title: Accuracy of forward freight agreements in forecasting future freight rates
Abstract:
Participants in the maritime industry place much interest in the Forward Freight Agreements (FFA/FFAs), being an indispensable tool for hedging shipping freight risk. Our article innovates by directly comparing the FFA predictions with their actual future settlement prices as well as by examining contracts going forward as far as next calendar year. We combine straightforward comparison measurements with cointegration analysis to test for the accuracy and efficiency of the FFA projections. We find that FFAs display limited usefulness in predicting future freights, only slightly superior than simple naïve models. The shorter the contract period and the smaller the vessel the better the forecast. We also find FFAs being relatively good predictors of future market direction but missing the turning points of the market cycles.
Journal: Applied Economics
Pages: 743-756
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340573
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340573
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Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:743-756
Template-Type: ReDIF-Article 1.0
Author-Name: Eunsun Yang
Author-X-Name-First: Eunsun
Author-X-Name-Last: Yang
Author-Name: Sunghyun Henry Kim
Author-X-Name-First: Sunghyun Henry
Author-X-Name-Last: Kim
Author-Name: Maria H Kim
Author-X-Name-First: Maria H
Author-X-Name-Last: Kim
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Macroeconomic shocks and stock market returns: the case of Korea
Abstract:
This study examines the effects of macroeconomic shocks on key macro variables, including stock market returns in Korea, using the structural vector autoregression (SVAR) model. We suggest a three-variable SVAR model incorporating inflation, output growth and stock returns. We adopt a nonzero z-ratio restriction for the long-run identifying assumption to allow for economically meaningful relationships among variables. While our results support the negative (positive) relation of demand (supply) shocks to stock returns, we also find that demand shocks influence stock market variance more significantly than supply shocks do. The sub-period analysis finds that global market fluctuations during the global financial crisis have relatively little effect on Korean stock market performance. We also examine a generalized five-variable model that includes the foreign exchange rate and interest rate, confirming the results from the three-variable case.
Journal: Applied Economics
Pages: 757-773
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340574
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340574
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Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:757-773
Template-Type: ReDIF-Article 1.0
Author-Name: Yan-leung Cheung
Author-X-Name-First: Yan-leung
Author-X-Name-Last: Cheung
Author-Name: Yunhao Dai
Author-X-Name-First: Yunhao
Author-X-Name-Last: Dai
Author-Name: Zhiwei Ouyang
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Ouyang
Author-Name: Weiqiang Tan
Author-X-Name-First: Weiqiang
Author-X-Name-Last: Tan
Title: Who leaves money on the table? The role of founder identity in Hong Kong
Abstract:
This study investigates the effect of corporate governance factors on the underpricing of initial public offerings (IPOs) in Hong Kong, and the results show that this effect is significant. IPOs are categorized into four subgroups based on the role of the founder: (1) no-founder firms (companies with no specific founder), (2) pure-founder firms (companies whose founder is neither the company’s chairman of the board nor its CEO), (3) founder-chairman/CEO firms (companies whose founder is either the company’s chairman of the board or its CEO) and (4) founder-chairman-CEO firms (companies whose founder is the chairman and CEO). The results demonstrate a significant descending pattern for the underpricing level of the four subgroups, which can be explained by the varying incentive and behaviour mechanisms that result from the various founder identities.
Journal: Applied Economics
Pages: 774-788
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340577
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340577
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Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:774-788
Template-Type: ReDIF-Article 1.0
Author-Name: Liang Ding
Author-X-Name-First: Liang
Author-X-Name-Last: Ding
Author-Name: Qianyi Yang
Author-X-Name-First: Qianyi
Author-X-Name-Last: Yang
Title: Asymmetric impact of monetary surprises on exchange rate
Abstract:
This paper examines the asymmetric response of exchange rate to monetary surprises. After controlling the type, direction and origin of the news as well as business cycle phase, a new asymmetry is found in the response of the exchange rate to news surprises. In specific, the US Dollar depreciates against major currencies as the response to the negative monetary surprises in the 2001 recession, while the Dollar appreciates responding to similar negative monetary surprises during the 2008 recession. The paper further explores possible causes and finds that time-varying status of the currency with higher financial returns may contribute to the new asymmetry.
Journal: Applied Economics
Pages: 789-803
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340578
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340578
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Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:789-803
Template-Type: ReDIF-Article 1.0
Author-Name: David E. Allen
Author-X-Name-First: David E.
Author-X-Name-Last: Allen
Author-Name: Chialin Chang
Author-X-Name-First: Chialin
Author-X-Name-Last: Chang
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Abhay K Singh
Author-X-Name-First: Abhay K
Author-X-Name-Last: Singh
Title: A cointegration analysis of agricultural, energy and bio-fuel spot, and futures prices
Abstract:
This article features an analysis of the cointegration relationships among agricultural commodity, ethanol and Cushing crude oil spot, and future prices. The use of grains for the creation of bio-fuels has sparked fears that these demands are inflating food prices. We analyse approximately 10 years of daily spot and futures prices for corn, wheat, sugar ethanol, and oil prices from Datastream for the period 19 July 2006 to 2 July 2015. The analysis features Engle-Granger pairwise cointegration and partial cointegration. Pairs of series, that are cointegrated, are analysed using Markov-switching VECM and Impulse Response Analysis, which confirms that these markets have significant linkages that vary according to whether they are in low or high volatility regimes.
Journal: Applied Economics
Pages: 804-823
Issue: 7
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340581
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340581
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Handle: RePEc:taf:applec:v:50:y:2018:i:7:p:804-823
Template-Type: ReDIF-Article 1.0
Author-Name: Marinela Adriana Finta
Author-X-Name-First: Marinela Adriana
Author-X-Name-Last: Finta
Author-Name: Bart Frijns
Author-X-Name-First: Bart
Author-X-Name-Last: Frijns
Author-Name: Alireza Tourani-Rad
Author-X-Name-First: Alireza
Author-X-Name-Last: Tourani-Rad
Title: Volatility spillovers among oil and stock markets in the US and Saudi Arabia
Abstract:
In this article, we use high frequency data and an identification via changes in volatility approach to assess the volatility spillovers among oil and the US and Saudi Arabian stock markets. We document the existence of asymmetry in contemporaneous spillover effects. Particularly, during the times when oil’s trading hours overlap with the US and Saudi Arabian stock markets, the volatility spillover from oil to the stock markets is higher than the other way around. We highlight the importance of taking into consideration the information present during continuous trading hours of oil, especially during simultaneous trading hours with the stock markets. We compare our findings based on our structural VAR with those of a traditional reduced-form VAR, and observe that contemporaneous and intraday effects are necessary to be taken into account since the indirect transmission of volatility occurs through them.
Journal: Applied Economics
Pages: 329-345
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494811
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494811
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Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:329-345
Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Bai
Author-X-Name-First: Xuelian
Author-X-Name-Last: Bai
Author-Name: Yi Dong
Author-X-Name-First: Yi
Author-X-Name-Last: Dong
Author-Name: Nan Hu
Author-X-Name-First: Nan
Author-X-Name-Last: Hu
Title: Financial report readability and stock return synchronicity
Abstract:
In this study, we investigate the impact of firm-specific information-processing cost, proxied by annual report readability, on investors’ firm-specific information usage, proxied by firm stock return synchronicity. We expect that more readable financial reports would reduce firm-specific information-processing costs and, therefore, reduce stock return synchronicity. We propose a new readability measure and demonstrate that, as the readability of annual reports increases, the firm’s future stock return synchronicity decreases. Furthermore, the effect of report readability on stock return synchronicity is more concentrated on firms with low analyst coverage or institutional ownership. Finally, the impact of readability on stock synchronicity is more concentrated on firms with high information asymmetry, such as firms small in size, with high R&D spending, or with high growth. The benefit of incorporating more firm-specific information (e.g. from a more readable financial report) into stock price is consistent with the SECs continuous attempt to make public company reports easier to comprehend. Managers of publicly listed firms should be aware of such a benefit and make their financial reports more readable by incorporating more tables, especially when their firms face high information asymmetry.
Journal: Applied Economics
Pages: 346-363
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495824
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495824
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Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:346-363
Template-Type: ReDIF-Article 1.0
Author-Name: Zongxin Li
Author-X-Name-First: Zongxin
Author-X-Name-Last: Li
Author-Name: Zhiping Chen
Author-X-Name-First: Zhiping
Author-X-Name-Last: Chen
Author-Name: Yongchang Hui
Author-X-Name-First: Yongchang
Author-X-Name-Last: Hui
Title: Portfolio selection through Maslow’s need hierarchy theory
Abstract:
Inspired by Maslow’s need hierarchy theory, we construct a new portfolio selection framework using the bi-level optimization technique in which the lower-level need relates to safety (low risk) while the upper-level need is concerned with self-actualization (high payoff). Specially, we consider a bi-level portfolio selection model using variance and conditional value-at-risk associated with the lower-level need and upper-level need, respectively. Accordingly, we propose a procedure to solve this bi-level optimization problem without the normal distribution assumption. Empirical study on the American stock market and U.K. stock market shows that our new model can determine optimal portfolios with moderate diversification. Out of sample performance also confirms that in our framework investors can obtain higher returns in a safe way compared to models in the traditional framework.
Journal: Applied Economics
Pages: 364-372
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1496223
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1496223
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Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:364-372
Template-Type: ReDIF-Article 1.0
Author-Name: Yue Yu
Author-X-Name-First: Yue
Author-X-Name-Last: Yu
Title: A preliminary exploration on stochastic dynamic asset allocation models under a continuous-time sticky-price general equilibrium
Abstract:
This article studies asset allocation problems under endogenous macroeconomic dynamics and monetary policy rules, by merging a continuous-time sticky-price general equilibrium model based on the New Keynesian framework with a stochastic dynamic portfolio selection model. Under optimal allocation strategies, the inverse of the Arrow–Pratt relative risk aversion function of investors decreases monotonically with a rising risk-free nominal interest rate, and exhibits a U shape with respect to inflation. This shows that, under the premise of an inflation-targeting monetary policy rule, the investors’ relative inclination for risky assets grows when inflation deviates from its steady state, in expectation for a countervailing nominal policy rate. The article also uses the model to discuss the macro-prudential problem of the feedback effects of the investors’ intertemporal utility-maximizing behaviour on the economy. Preliminary results show that the existence of risky assets in the economy can have an effect similar to that of the financial accelerator. This gives another possible explanation for the wedge effect beyond the traditional incentive theory.
Journal: Applied Economics
Pages: 373-386
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1497851
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497851
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Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:373-386
Template-Type: ReDIF-Article 1.0
Author-Name: Mahdi Majbouri
Author-X-Name-First: Mahdi
Author-X-Name-Last: Majbouri
Title: Twins, family size and female labour force participation in Iran
Abstract:
Despite the remarkable increase in women’s education levels and the rapid fall of their fertility rate in Iran, female labour force participation (FLFP) has remained low. Using the instrumental variable method, this article estimates the causal impact of number of children on mothers’ participation in the labour market. It finds that having an extra (unplanned) child would only reduce female participation rate for low-educated mothers and mothers with young children, thus having no causal impact on most mothers’ participation. This result explains why the rapid decline in fertility rates did not increase female participation; rather, other factors should be at play. It hence moves us a step forward in explaining the puzzle of FLFP in Iran. Policy implications are discussed.Abbreviation: FLFP: Female Labour Force Participation; LFP: Labour Force Participation
Journal: Applied Economics
Pages: 387-397
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1497853
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497853
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Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:387-397
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Kris Ivanovski
Author-X-Name-First: Kris
Author-X-Name-Last: Ivanovski
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Title: The role of ethnic diversity in sustainable environmental growth: new evidence across different income regions
Abstract:
We examine the relationship between ethnic diversity and environmental quality, proxied by carbon dioxide ($${\rm C{O_2}}$$CO2) emissions. Ethnic diversity is captured using indices of ethnic fractionalization. Adopting a supply-demand framework which introduces a model for economic growth, we find that ethnic fractionalization reduces $${\rm C{O_2}}$$CO2 emissions. The negative effect of ethnic diversity on $${\rm C{O_2}}$$CO2 emissions is also consistent across middle and low-income countries as well as high-income countries. However, results suggest that ethnic diversity has a negative effect on growth in middle and low-income countries, but a positive effect on growth in high-income countries. Our findings prove robust to alternative estimation methods.
Journal: Applied Economics
Pages: 398-408
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1497854
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497854
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Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:398-408
Template-Type: ReDIF-Article 1.0
Author-Name: Habtamu Alem
Author-X-Name-First: Habtamu
Author-X-Name-Last: Alem
Author-Name: Gudbrand Lien
Author-X-Name-First: Gudbrand
Author-X-Name-Last: Lien
Author-Name: J. Brian Hardaker
Author-X-Name-First: J. Brian
Author-X-Name-Last: Hardaker
Author-Name: Atle Guttormsen
Author-X-Name-First: Atle
Author-X-Name-Last: Guttormsen
Title: Regional differences in technical efficiency and technological gap of Norwegian dairy farms: a stochastic meta-frontier model
Abstract:
This paper compares technical efficiencies (TEs) and technological gap ratios (TGRs) for dairy farms in regions of Norway, accounting for differences in working environments. We used the state-of-the-art stochastic meta-frontier approach to estimate TEs and TGRs to account for regional heterogeneity, and the ‘true’ random-effect model to account for farm effects. The dataset used was farm-level balanced panel data for 24 years (1992–2014), with 5442 observations from 731 dairy farms. The results of the analysis provide empirical evidence of small regional differences in TEs, TGRs, and input use. Furthermore, the results may provide support for the more regionally specific agricultural policy, in terms of support schemes and structural regulations.
Journal: Applied Economics
Pages: 409-421
Issue: 4
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1502867
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502867
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Handle: RePEc:taf:applec:v:51:y:2019:i:4:p:409-421
Template-Type: ReDIF-Article 1.0
Author-Name: David E. Allen
Author-X-Name-First: David E.
Author-X-Name-Last: Allen
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Abhay K. Singh
Author-X-Name-First: Abhay K.
Author-X-Name-Last: Singh
Title: Daily market news sentiment and stock prices
Abstract:
In recent years there has been a tremendous growth in readily available news related to traded assets in international financial markets. This financial news is now available through real-time online sources such as Internet news and social media sources. The increase in the availability of financial news and investor’s ease of access to it has a potentially significant impact on market stock price movement as these news items are swiftly transformed into investors sentiment which in turn drives prices. In this study, we use the Thomson Reuters News Analytics (TRNA) data set to construct a series of daily sentiment scores for Dow Jones Industrial Average (DJIA) stock index constituents. We use these daily DJIA market sentiment scores to study the influence of financial news sentiment scores on the stock returns of these constituents using a multi-factor model. We augment the Fama–French three-factor model with the day’s sentiment score along with lagged scores to evaluate the additional effects of financial news sentiment on stock prices in the context of this model using Ordinary Least Square (OLS) and Quantile Regression (QR) to analyse the effect around the tail of the return distribution. We also conduct the analysis using the seven-day simple moving average (SMA) of the scores to account for news released on non-trading days. Our results suggest that even when market factors are taken into account, sentiment scores have a significant effect on Dow Jones constituent returns and that lagged daily sentiment scores are often significant, suggesting that information compounded in these scores is not immediately reflected in security prices and related return series. The results also indicate that the SMA measure does not have a significant effect on the returns. The analysis using Quantile Regression provides evidence that the news has more impact on left tail compared to the right tail of the returns.
Journal: Applied Economics
Pages: 3212-3235
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564115
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564115
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Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3212-3235
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Fernandez-Perez
Author-X-Name-First: Adrian
Author-X-Name-Last: Fernandez-Perez
Author-Name: Bart Frijns
Author-X-Name-First: Bart
Author-X-Name-Last: Frijns
Author-Name: Alireza Tourani-Rad
Author-X-Name-First: Alireza
Author-X-Name-Last: Tourani-Rad
Author-Name: Jean-Philippe Weisskopf
Author-X-Name-First: Jean-Philippe
Author-X-Name-Last: Weisskopf
Title: Behavioural heterogeneity in wine investments
Abstract:
We introduce a heterogeneous agent model to explain the dynamics of fine wine investments. Our results show evidence of the existence of both fundamentalists – those who trade on mean-reversion towards a fair value – and chartists – those who extrapolate recently observed price trends – in the wine market. Moreover, we document that market participants switch between the two trading strategies, allocating more weight to the strategy that has been the most accurate in forecasting wine index values in the recent past. This switching behaviour can explain the large variations in index values (bubbles and crashes) that are observed in the fine wine market.
Journal: Applied Economics
Pages: 3236-3255
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566686
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566686
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Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3236-3255
Template-Type: ReDIF-Article 1.0
Author-Name: Howard Qi
Author-X-Name-First: Howard
Author-X-Name-Last: Qi
Author-Name: Jian Shi
Author-X-Name-First: Jian
Author-X-Name-Last: Shi
Author-Name: Yan Alice Xie
Author-X-Name-First: Yan Alice
Author-X-Name-Last: Xie
Title: Default correlation: rating, industry ripple effect, and business cycle
Abstract:
For a well-diversified bond portfolio, default risk over the investment horizon is known as the major risk and the risk is largely from correlated defaults. While plenty of theoretical work about default correlation has been developed, empirical studies on default correlation have not made much progress in the past two decades. In this paper, we fill this void in the literature by thoroughly investigating how default correlation changes across different bond ratings, over different time horizons, and across different industries over the sample period of 1970 to 2014. In particular, we examine how rating-based default correlations change before, during, and after recessions. More importantly, we reveal the ‘industry ripple effect’ that default correlations are low within upstream industries but become higher within downstream industries along the structure of the supply chain. Also, default correlations are relatively high between upstream industries and downstream industries.
Journal: Applied Economics
Pages: 3256-3273
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566689
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566689
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Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3256-3273
Template-Type: ReDIF-Article 1.0
Author-Name: Catalina Hurwitz
Author-X-Name-First: Catalina
Author-X-Name-Last: Hurwitz
Author-Name: Wen-Hsiu Chou
Author-X-Name-First: Wen-Hsiu
Author-X-Name-Last: Chou
Author-Name: Chun-Hao Chang
Author-X-Name-First: Chun-Hao
Author-X-Name-Last: Chang
Author-Name: Arun Prakash
Author-X-Name-First: Arun
Author-X-Name-Last: Prakash
Title: The determinants of firms’ global diversification decisions
Abstract:
Why do some firms choose to be ‘born global’ and become early internationalizing firms (EIFs) while others choose to be ‘born-again global’ and develop into late internationalizing firms (LIFs)? What are the main factors impacting a firm’s decision on the timing of global diversification? Based on the theories of diversification, this study examines the role of peer influence and desire for growth on the timing of a firm’s globalization decision. We further study the idiosyncratic risk and the adoption of technological innovation hypotheses on global diversification. Our results document that innovation efficiency strongly enhances EIFs’ propensity to global diversification. On the other hand, peer pressure and idiosyncratic risk level significantly influence EIFs not to globalize. In contrast, LIFs are positively influenced by their industry peers, showing how young and mature companies respond to the market competition in a different manner.
Journal: Applied Economics
Pages: 3274-3292
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566690
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566690
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Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3274-3292
Template-Type: ReDIF-Article 1.0
Author-Name: Fabien Candau
Author-X-Name-First: Fabien
Author-X-Name-Last: Candau
Author-Name: Geoffroy Guepie
Author-X-Name-First: Geoffroy
Author-X-Name-Last: Guepie
Author-Name: Julie Schlick
Author-X-Name-First: Julie
Author-X-Name-Last: Schlick
Title: Moving to autarky, trade creation and home market effect: an exhaustive analysis of regional trade agreements in Africa
Abstract:
This article analyses the effects of Regional Trade Agreements (RTAs) on bilateral trade in Africa. A structural gravity equation is estimated over the period 1955–2014. The overall effect of RTAs on African trade is strong, but depending on the nature of the RTAs, there is a decreasing impact over time. While Economic Integration Agreements (EIAs) still favour trade in Africa, there was no trade creation coming from Free Trade Agreements between 1990 and 2014. However, the provisions of RTAs do not have a negative impact on trade: agreements that include behind-the-border policies do not significantly deter bilateral trade. To explain the declining impact of RTAs, we look at their redistributive impact between members states. There is no evidence that large countries disproportionally export diversified goods due to RTAs (no ‘home effect’). Countries with a good international network (‘hub effect’) benefited more than other countries of RTAs between 1955 and 1990 but this is however less true on the most recent period (1990–2014).
Journal: Applied Economics
Pages: 3293-3309
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1566691
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1566691
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Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3293-3309
Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Han Liu
Author-X-Name-First: Wei-Han
Author-X-Name-Last: Liu
Title: An empirical re-examination of extreme tail behavior: testing the assumptions of the power laws and the generalized Pareto distribution on the financial series
Abstract:
This study investigates whether the power laws and the associated generalized Pareto distribution (GPD) exist in the extreme tail behavior of financial return series. We include 10 series of five major financial categories over the period 1971–2018 for empirical analysis. For the former assumption, we test three representative power-law distributions. For the latter, we employ an innovative bootstrap goodness-of-fit test of GPD modeling. We also discuss the relationship between both assumptions. The empirical outcomes indicate that both assumptions do not necessarily hold for all tail series due to the outlying observations. The rejection of the power laws assumption leads to the rejection of the GPD assumption. This rejection does not promise the non-rejection of power laws either. However, the non-rejection of either assumption does not imply non-rejection of the other assumption. Power-law distribution and exponential distribution outperform log-normal distribution in tail fitting. GPD fits better at the 1% quantile level than at the 5% level. Overall, we need to acknowledge the considerable gap between the goodness-of-fit testing outcomes of both the power laws and GPD assumptions.
Journal: Applied Economics
Pages: 3310-3324
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1574968
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1574968
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Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3310-3324
Template-Type: ReDIF-Article 1.0
Author-Name: Luigino Bruni
Author-X-Name-First: Luigino
Author-X-Name-Last: Bruni
Author-Name: Dalila De Rosa
Author-X-Name-First: Dalila
Author-X-Name-Last: De Rosa
Author-Name: Giovanni Ferri
Author-X-Name-First: Giovanni
Author-X-Name-Last: Ferri
Title: Cooperatives and happiness. Cross-country evidence on the role of relational capital
Abstract:
Why is the share of happy people higher in some countries than in their equally developed neighbours? We conjecture that the apparent contradiction might depend on a country’s endowment of relational capital, which we proxy empirically with the extent of cooperativeness. In particular, within the black box of social capital, we consider relational capital as the outcome of the civil economy paradigm and use cooperativeness as the macro and objective proxy of long term face-to-face interaction. Compiling an index of the importance of the cooperative sector, we test whether more cooperativeness associates with more happiness controlling for countries’ HDI and other control variables. Checking for endogeneity, using various country samples, and through different regression methods we find support for our hypothesis. This suggests that, indeed, an institutionalized cooperative culture can promote happiness.
Journal: Applied Economics
Pages: 3325-3343
Issue: 30
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2019.1575944
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1575944
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Handle: RePEc:taf:applec:v:51:y:2019:i:30:p:3325-3343
Template-Type: ReDIF-Article 1.0
Author-Name: Ningjing Wang
Author-X-Name-First: Ningjing
Author-X-Name-Last: Wang
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: China’s regional rebound effect based on modelling multi-regional CGE
Abstract:
Improving energy efficiency has been regarded as an important measure to reduce energy consumption, yet the rebound effect has greatly shrunken the energy saving consequences of this measure. To investigate regional rebound effect in China, a multi-region computed general equilibrium (CGE) model is established in this paper. The results show that there are obvious regional differences in the rebound effect in China. The primary energy rebound effects are positive, whereas the production-side power rebounds are below zero in most regions. We also simulated the energy subsidy reform scenarios, which indicates that reducing or even eliminating coal and oil subsidies will increase the production-side rebounds. Finally, feasible policy recommendations are put forward based on the results.
Journal: Applied Economics
Pages: 5712-5726
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616076
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616076
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Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5712-5726
Template-Type: ReDIF-Article 1.0
Author-Name: Cinthia Cabral Da Costa
Author-X-Name-First: Cinthia Cabral Da
Author-X-Name-Last: Costa
Author-Name: Heloisa Lee Burnquist
Author-X-Name-First: Heloisa Lee
Author-X-Name-Last: Burnquist
Author-Name: Joaquim José Martins Guilhoto
Author-X-Name-First: Joaquim José Martins
Author-X-Name-Last: Guilhoto
Author-Name: Kennya B. Siqueira
Author-X-Name-First: Kennya B.
Author-X-Name-Last: Siqueira
Title: Should special agricultural safeguard be ignored? An evaluation for dairy trade
Abstract:
This study measured the impact of special agricultural safeguards (SSG) on dairy products imports by the US and Japan. It was observed that dairy products have been the most affected by this protectionist measures, and that these countries are relevant importers that impose SSG. The tariff lines subject to SSG were selected, and the period of analysis was from 1995 to 2015. The results showed that the impact of SSG applied by the US was much higher than for Japan. The overall estimated value of imports that did not happen due to the application of SSGs was approximately USD 2 billion. Specifically for the Brazilian economy, the condensed milk not exported to the US due to SSG applied cost the country BRL 345 million in GDP value and almost 4.5 thousand jobs. These results might be underestimating these effects, since the SSG tariff was not subject to calculation in several years.
Journal: Applied Economics
Pages: 5727-5740
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619016
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619016
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Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5727-5740
Template-Type: ReDIF-Article 1.0
Author-Name: Tingting Tong
Author-X-Name-First: Tingting
Author-X-Name-Last: Tong
Author-Name: Haizheng Li
Author-X-Name-First: Haizheng
Author-X-Name-Last: Li
Author-Name: Samuel Greiff
Author-X-Name-First: Samuel
Author-X-Name-Last: Greiff
Title: Human capital and leadership: the impact of cognitive and noncognitive abilities
Abstract:
We conduct an economic analysis about the impact of human capital on an individual’s potential of becoming a leader based on data from the Programme for the International Assessment of Adult Competencies Survey (PIAAC). Our human capital indicators include not only traditional measures such as education and experience, but also various measures of cognitive and noncognitive ability. Our cognitive ability measures include numeracy, literacy, and problem solving abilities, and noncognitive ability measures include perseverance, motivation to learn, and social trust. We specifically investigate the effect of measurement error and reverse causality on the estimation results. We find that problem-solving ability is the most important in affecting leadership among cognitive ability measures, and perseverance shows the strongest impact among noncognitive ability measures. As a leader supervises more employees, the role of cognitive and noncognitive ability becomes more critical.
Journal: Applied Economics
Pages: 5741-5752
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619022
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619022
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Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5741-5752
Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Eleonora Pierucci
Author-X-Name-First: Eleonora
Author-X-Name-Last: Pierucci
Author-Name: Frank Fu
Author-X-Name-First: Frank
Author-X-Name-Last: Fu
Title: Risk sharing role of foreign aid in developing countries
Abstract:
The effects of foreign aid on economic growth have been extensively investigated over the past 40 years. However, even though foreign aid can be a significant source of insurance against domestic output shocks for developing countries, its risk-sharing role has not been well explored. Using a sample of 22 developing countries over the period 2003–2013, we estimate the degree of income smoothing generated by foreign aid serving as an effective channel of international income smoothing. In particular, for the period 2003–2008, we estimate that foreign aid offset about 4% of the domestic output shocks. Furthermore, we investigate the determinants of the extent of risk sharing via foreign aid, recognizing the diversification of the originating countries as a key factor. Surprisingly, humanitarian aid seems to have a negative effect, which might be explained by its predominant role in the short run.
Journal: Applied Economics
Pages: 5753-5766
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619024
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619024
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Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5753-5766
Template-Type: ReDIF-Article 1.0
Author-Name: Fengyun Liu
Author-X-Name-First: Fengyun
Author-X-Name-Last: Liu
Author-Name: Honghao Ren
Author-X-Name-First: Honghao
Author-X-Name-Last: Ren
Author-Name: Chuanzhe Liu
Author-X-Name-First: Chuanzhe
Author-X-Name-Last: Liu
Title: Housing price fluctuations and financial risk transmission: a spatial economic model
Abstract:
Financial risk derived from housing price fluctuations in China garnered much public concern recently. Based on the theoretical analyses of the transmission of financial risk from housing price fluctuations, this paper establishes panel spatial Durbin models to empirically analyse housing price fluctuations and financial risks transmission from a spatial economic perspective. Employing the panel provincial data from 1999–2015, we conduct an analysis on the 30 provinces in China as well as a comparison among the Eastern, Middle and Western regions of China. The results indicate that: (1) The soaring housing prices driven by bank credit, real estate developers’ heavy investment, local governments’ land revenue and individuals and households demands leads to financial risk in various sectors; (2) due to the ‘substitution effect’, the capital agglomeration in metropolis from bank credits, real estate developers, and individuals and households furthers the amassment of financial risks; (3) housing prices have a significant spatial contagion effect throughout the country, and financial risk could directly transmit across provinces through housing price fluctuations; (4) financial risks could indirectly transmit across provinces via the ‘imitative behaviour’ or ‘driving effect’ of different sectors for different regions of China.
Journal: Applied Economics
Pages: 5767-5780
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619025
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619025
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Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5767-5780
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Jeremy Nguyen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Nguyen
Author-Name: Martin O’Brien
Author-X-Name-First: Martin
Author-X-Name-Last: O’Brien
Title: Asymmetric responses of house prices to changes in the mortgage interest rate: evidence from the Australian capital cities
Abstract:
We examine the dynamic and asymmetric responses of house prices to changes in mortgage interest rates in Australia from January 1995 to November 2017. We propose a threshold intervention model to distinguish between the effects of positive versus negative changes in the standard variable interest rate. The results indicate that rising interest rates decrease house prices more than falling interest rates increase them. For example, a 1% decrease in interest rates increases Sydney’s house prices by 0.7%, whereas a 1% increase leads to a 1.5% fall. The findings also support the view that when interest rates are on the rise, house prices in larger capital cities such as Sydney and Melbourne fall faster than in their smaller counterparts. Our findings imply that a rise in interest rates may thus lead to sharp, fast and significant falls in house prices, a phenomenon which will not simply be a symmetric unwinding of earlier price increases.
Journal: Applied Economics
Pages: 5781-5792
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619026
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619026
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Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5781-5792
Template-Type: ReDIF-Article 1.0
Author-Name: William E. Maples
Author-X-Name-First: William E.
Author-X-Name-Last: Maples
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Author-Name: Xiaoli L. Etienne
Author-X-Name-First: Xiaoli L.
Author-X-Name-Last: Etienne
Title: Hedging effectiveness of fertilizer swaps
Abstract:
The fertilizer swaps market is a potential tool to protect against fertilizer price risk. The swaps evaluated here are cash settled using The Fertilizer Index. Hedge ratios and hedging effectiveness are calculated for urea and DAP diammonium phosphate (DAP)) swaps. Urea and DAP swaps perform poorly as a hedging tool over a one-week horizon. As the hedging horizon increases, the hedging effectiveness of swaps improves. The swaps are more effective in mitigating risk across ocean freight routes than across inland routes. The limited hedging effectiveness is due to high spatial basis risk in fertilizer markets.
Journal: Applied Economics
Pages: 5793-5801
Issue: 53
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1624916
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624916
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Handle: RePEc:taf:applec:v:51:y:2019:i:53:p:5793-5801
Template-Type: ReDIF-Article 1.0
Author-Name: Syed Abul Hasan
Author-X-Name-First: Syed Abul
Author-X-Name-Last: Hasan
Title: Price hike of staple food, nutritional impact and consumption adjustment: evidence from the 2005–2010 rice price increase in rural Bangladesh
Abstract:
This paper studies the nutritional impact of the rice price increase between 2005 and 2010 on households in rural Bangladesh and their resulting adjustment in consumption of rice, non-rice food and non-food items. We compare net rice buyers, who suffer from a negative income effect, with self-sufficient households that do not suffer from any such effect. Our findings indicate that rural households in Bangladesh cope well with the surge in the domestic rice price as indicated by the absence of any effect on their calorie intake and dietary diversity. In fact, both types of households similarly change their consumption of rice, non-rice grain, pulses, protein, fruits and other items. Furthermore, we do not find any evidence of buyers’ switching towards low-quality items in a food group. In a separate analysis, we compare net rice sellers with self-sufficient households and arrive at a similar conclusion. In both cases, income plays a crucial role in the consumption of non-rice food and non-food items, indicating the importance of effective income support programs at the time of price shocks in staple food items.
Journal: Applied Economics
Pages: 743-761
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1508870
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1508870
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Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:743-761
Template-Type: ReDIF-Article 1.0
Author-Name: Amarakoon Bandara
Author-X-Name-First: Amarakoon
Author-X-Name-Last: Bandara
Title: Youth labor market expectations and job matching in sub-Saharan Africa: evidence from school-to-work transition surveys
Abstract:
In this paper, we investigate the factors that influence youth labour market expectations and outcomes. We also perform a job matching exercise to understand youth labour market dynamics in Sub-Saharan Africa. Our results show that youth education is an influential factor of youth employment expectations and employment, ceteris paribus. Higher educational attainments have a great impact on expecting and securing better jobs, particularly in the technical and professional fields. Youth with low educational attainments, particularly primary education and lower, have a higher tendency to expect to be employed in occupations with low job complexity. Our results indicate a severe job-skill mismatch in all occupational categories, both before and after the youth’s transition into the labour market. Using education as the only selection criterion, we found that less than 10 per cent of employment expectations match with skills required while 55 per cent and 34 per cent are under or over-educated for the jobs expected, respectively. Over and under education is a notable feature in youth labour markets in Sub-Saharan Africa. About 47 per cent of employed youth in the sample are overqualified for their respective jobs while 28 per cent are under qualified.
Journal: Applied Economics
Pages: 762-780
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1512742
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1512742
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Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:762-780
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa
Author-X-Name-Last: Awaworyi Churchill
Author-Name: Ahmed Salim Nuhu
Author-X-Name-First: Ahmed Salim
Author-X-Name-Last: Nuhu
Author-Name: Karely Lopez
Author-X-Name-First: Karely
Author-X-Name-Last: Lopez
Title: Persistence of gender inequality: the role of ethnic divisions
Abstract:
Gender inequality remains a fundamental challenge for global policymakers given that it has detrimental implications for growth and human capital formation. However, studies examining the roots of gender inequality, and what determines the level of inequality are relatively scant. In this study, we seek to contribute to the literature that examines the roots of gender inequality and thus, our objective is to examine the impact of ethnic diversity on gender inequality. We argue that the level of ethnic diversity within a country plays a role in either deepening or bridging gender gaps. Using indices of ethnic fractionalization, we examine the effects of ethnic diversity on measures of gender inequality such as the gender inequality index, and its associated dimensions of empowerment, educational attainment and labour market outcomes. Our evidence suggests that ethnic diversity widens existing gender gaps. We discuss several mechanisms through which ethnic diversity may lead to the increase of existing gender gaps, and lay out various policy approaches to address gender inequality.
Journal: Applied Economics
Pages: 781-796
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1513635
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1513635
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Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:781-796
Template-Type: ReDIF-Article 1.0
Author-Name: Linyue Li
Author-X-Name-First: Linyue
Author-X-Name-Last: Li
Author-Name: Zhixian Sun
Author-X-Name-First: Zhixian
Author-X-Name-Last: Sun
Author-Name: Xiang Long
Author-X-Name-First: Xiang
Author-X-Name-Last: Long
Title: An empirical analysis of night-time light data based on the gravity model
Abstract:
This article aims to explore the feasibility of applying night-time light data to the study of trade. Based on 61 countries’ panel data from 1995 to 2012, this research used night-time light data, as the substitute for GDP, to study trade development based on the traditional gravity model. The method of ordinary least squares, Poisson pseudo-maximum-likelihood and two-stage least squares were used. The results show that geographical distance, country borders and regional agreements have a significant effect on China’s trade with other Belt and Road countries, which verifies the validity of trade research based on night-time light data analysis. Additionally, comparisons reveal the trade trends predicted by night-time light data from 1996 to 2012, were highly consistent with the actual data. This article stands as the first study to apply night-time light data to the gravity model in the research on trade between China and other Belt and Road countries. Breaking new ground, this research uses night-time light data as an economic indicator to study trade, in combination with micro foundations and the latest findings of the gravity model. Thus, this article deepens the understanding of trade analysis and contributing to the field of related researches.
Journal: Applied Economics
Pages: 797-814
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1523612
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1523612
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Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:797-814
Template-Type: ReDIF-Article 1.0
Author-Name: Jun Sung Kim
Author-X-Name-First: Jun Sung
Author-X-Name-Last: Kim
Author-Name: Bin Jiang
Author-X-Name-First: Bin
Author-X-Name-Last: Jiang
Author-Name: Chuhui Li
Author-X-Name-First: Chuhui
Author-X-Name-Last: Li
Author-Name: Hee-Seung Yang
Author-X-Name-First: Hee-Seung
Author-X-Name-Last: Yang
Title: Returns to women’s education using optimal IV selection
Abstract:
This paper investigates returns to women’s education by applying an optimal IV selection approach, post-Lasso IV estimation, which improves the first-stage predictive relationship between an endogenous regressor and instruments. Using the 2010 American Community Survey, we find that an extra year of education increases married women’s own income by $4,480 and spouse income by $8,822. Our findings indicate that 53% of the increase in women’s consumption by education is attributed to the marriage market, and thus, we conclude that the marriage market is the primary channel through which education improves women’s well-being. The results demonstrate the advantages of the post-Lasso approach: The resulting two-stage least squares estimator maintains efficiency without increasing finite sample bias and is less subject to the inconsistency problem when some instruments are invalid; This differs from the results using the instrument of birth quarters only, which is mostly applied in studies on returns to education.
Journal: Applied Economics
Pages: 815-830
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524126
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524126
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Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:815-830
Template-Type: ReDIF-Article 1.0
Author-Name: Thierno Amadou Barry
Author-X-Name-First: Thierno Amadou
Author-X-Name-Last: Barry
Author-Name: Amine Tarazi
Author-X-Name-First: Amine
Author-X-Name-Last: Tarazi
Author-Name: Paul Wachtel
Author-X-Name-First: Paul
Author-X-Name-Last: Wachtel
Title: Falling under the control of a different type of owner:risk-taking implications for banks
Abstract:
European banks have experienced significant changes in the type of entity that owns them (another bank, an individual or a family, a non-financial company, an institutional investor, a government, a foreign entity, a domestic entity…). In this paper, we look at the influence of ownership type changes on risk and profitability. Working with a panel of commercial banks from 17 European countries, we find that although banks that experience a change in ownership type do not exhibit lower or higher risk or profitability than other banks, their risk and profitability is significantly affected after the change takes place. The type of the acquirer plays a significant role in explaining the observed changes. When the acquirer is a non-financial company, the state or an institutional investor, the level of risk increases after the change while the level of profitability remains unchanged. Conversely, when the acquirer is a bank, we find that the level of risk-adjusted profitability decreases. Banks acquired by a different type of owner during the global financial crisis do not perform better or worse than they did before.
Journal: Applied Economics
Pages: 831-847
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524127
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524127
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Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:831-847
Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: George Kambouris
Author-X-Name-First: George
Author-X-Name-Last: Kambouris
Title: The sources of momentum in international government bond returns
Abstract:
This study aims to offer a new explanation for the momentum effect in international government bonds. Using cross-sectional and time-series tests, we examine a sample of bonds from 22 countries for the years 1980 through 2018. We document significant momentum profits that are not attributable to bond-specific risk factors, such as volatility or credit risk. The global bond momentum is driven by the returns on underlying foreign exchange rates. Controlling for currency movements fully explains the abnormal returns on momentum strategies in international government bonds. The results are robust to many considerations including alternative sorting periods, portfolio construction methods, as well as subperiod and subsample analysis.
Journal: Applied Economics
Pages: 848-857
Issue: 8
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524132
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524132
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Handle: RePEc:taf:applec:v:51:y:2019:i:8:p:848-857
Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Sheng Kao
Author-X-Name-First: Yu-Sheng
Author-X-Name-Last: Kao
Author-Name: Hao-Yang Sun
Author-X-Name-First: Hao-Yang
Author-X-Name-Last: Sun
Author-Name: Chien-Chung Nieh
Author-X-Name-First: Chien-Chung
Author-X-Name-Last: Nieh
Author-Name: Kai Zhao
Author-X-Name-First: Kai
Author-X-Name-Last: Zhao
Title: Does microtherm boost pharmaceutical companies’ market capitalization returns?
Abstract:
The purpose of this study was to survey the relationship between the temperature factors and market capitalization returns of pharmaceutical companies by analysing both the daily and weekly frequency data in Taiwan. The threshold regression model with the GJR-GARCH process was applied for examination in this study; we found that pharmaceutical companies’ market capitalization returns could be boosted after exposure to extremely low temperatures for a period of time. Besides, the delayed effect of cold weather is demonstrated to exist. This phenomenon can be illustrated by epidemiological evidence-related mental factors, not by traditional behavioural finance. Moreover, lower weekly average temperatures are beneficial for investors to gain weekly pharmaceutical companies’ market capitalization returns. We are of the opinion that our findings offer an insightful suggestion for investors to buy pharmaceutical stocks at an opportune moment.
Journal: Applied Economics
Pages: 1522-1535
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368988
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368988
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Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1522-1535
Template-Type: ReDIF-Article 1.0
Author-Name: N. Arfaoui
Author-X-Name-First: N.
Author-X-Name-Last: Arfaoui
Title: Eco-innovation and regulatory push/pull effect in the case of REACH regulation: empirical evidence based on survey data
Abstract:
Numerous theoretical and empirical studies provide evidence of a positive correlation between eco-innovation and environmental regulation. However, few analyses explain how environmental policies drive eco-innovation. This article studies eco-innovation-friendly mechanisms in the design of European REACH (Registration, Evaluation, Authorization of Chemicals) regulation. The aim of REACH, which became effective in 2007, is ‘to ensure a high level of protection of human health and the environment while improving competitiveness and innovation’ which makes it appropriate and original for analysing the relationship between environmental regulation and eco-innovation. The primary contribution of this article is to provide a new theoretical and empirical perspective on eco-innovation by showing how design regulation is able to push and pull the environment innovation, based on an original survey related to REACH regulation. The econometric model shows that (1) regulatory-push mechanisms seem to be more important drivers than regulatory-pull mechanisms; (2) the process of authorization and the obligation to transmit information throughout the supply chain play an important role in ‘pushing’ eco-innovation, suggesting that policymakers should promote new ‘green knowledge’ to encourage eco-innovation; (3) extending obligations has a significantly positive effect on ‘pulling’ eco-innovation and (4) only well-designed instruments, appropriate for the techno-industrial and institutional contexts in which they are to be applied, lead to innovation.
Journal: Applied Economics
Pages: 1536-1554
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368989
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368989
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Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1536-1554
Template-Type: ReDIF-Article 1.0
Author-Name: Tania Lopez
Author-X-Name-First: Tania
Author-X-Name-Last: Lopez
Author-Name: Adalbert Winkler
Author-X-Name-First: Adalbert
Author-X-Name-Last: Winkler
Title: The challenge of rural financial inclusion – evidence from microfinance
Abstract:
Financial inclusion is said to foster development and growth. However, progress in financial inclusion has been slow in rural areas where poverty is most pronounced. This is often attributed to higher transaction costs, higher risks and a more unfavourable contracting environment which makes it more difficult for financial institutions to achieve and maintain sustainability in rural compared to urban areas. Based on data covering 772 microfinance institutions (MFIs) over the period 2008–2013, we test whether rural financial inclusion, notably lending to rural borrowers, is hampered by stronger sustainability challenges than inclusion in urban markets. Our results suggest that a higher share of rural borrowers has no direct effect on MFI sustainability. However, we find that MFIs with a higher share of rural borrowers are less able to exploit economies of scale and productivity effects. Thus, our results provide support for the view that sustainability challenges make it more difficult to achieve progress in financial inclusion in rural than in urban areas.
Journal: Applied Economics
Pages: 1555-1577
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368990
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368990
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Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1555-1577
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Kruppe
Author-X-Name-First: Thomas
Author-X-Name-Last: Kruppe
Author-Name: Julia Lang
Author-X-Name-First: Julia
Author-X-Name-Last: Lang
Title: Labour market effects of retraining for the unemployed: the role of occupations
Abstract:
We analyse the impact of retraining for unemployed low-skilled job-seekers in Germany. This extensive training programme leads to a formal vocational degree, which is often required to access certain professions. Applying statistical matching methods, we find that on average, after a period with large lock-in effects, retraining strongly increases the employment probability of participants, especially women. We add to the literature by estimating the employment effects for different occupations for which participants are trained. Our results show that there are substantial differences depending on the occupation. As the composition of trained occupations differs for men and women, segregation could be a driver of higher employment effects for women. However, comparisons of men and women trained for the same occupations reveal that even after controlling for segregation, women profit more from retraining. While caseworkers are instructed to choose professions with high labour demand, other aspects, such as working conditions, preferences and aptitudes of participants, should be crucial in the choice of a suitable occupation. An individual assessment of the suitability of an occupation could therefore improve the overall effectiveness of the programme.
Journal: Applied Economics
Pages: 1578-1600
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368992
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368992
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Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1578-1600
Template-Type: ReDIF-Article 1.0
Author-Name: Haileslasie Tadele
Author-X-Name-First: Haileslasie
Author-X-Name-Last: Tadele
Author-Name: Helen Roberts
Author-X-Name-First: Helen
Author-X-Name-Last: Roberts
Author-Name: Rosalind H. Whiting
Author-X-Name-First: Rosalind H.
Author-X-Name-Last: Whiting
Title: Microfinance institutions’ transparency in Sub-Saharan Africa
Abstract:
This study analyses the impact of the ownership structure and macro-level factors on Microfinance institutions’ (MFIs) transparency in Sub-Saharan Africa (SSA). Using cross-sectional data from 223 MFIs in 11 countries, we find that MFI transparency in SSA is low and highly variable. Our results indicate that larger MFIs and non-governmental organizations (NGOs) are associated with greater transparency. Greater transparency of NGOs is consistent with the need to sustain and attract donor funding. Country-level resources, such as the level of financial sector development, also impact MFI transparency.
Journal: Applied Economics
Pages: 1601-1616
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368993
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368993
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Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1601-1616
Template-Type: ReDIF-Article 1.0
Author-Name: Tom Lähner
Author-X-Name-First: Tom
Author-X-Name-Last: Lähner
Title: Inconsistent voting behaviour in the FOMC
Abstract:
This article uses transcript data to examine determinants of inconsistent voting behaviour in the Federal Open Market Committee (FOMC) in the period 1989–2008. Inconsistent voting behaviour occurs if a member shows disagreement on the interest rate proposed by the chairman in the policy go-around, but this member agrees in the formal vote. Results show that after the 1993’s increase in central bank transparency, the probability of casting inconsistent votes decreases significantly, on average by 3.3 percentage points. FOMC members with longer tenure on the committee have a lower probability of casting inconsistent votes. Further results suggest that board members and bank presidents differ significantly, with bank presidents casting inconsistent votes more often than board members do. This relation holds true for gender as well, with female members casting more inconsistent votes than males. In addition, political aspects and career backgrounds also contribute to explaining inconsistent voting behaviour in the FOMC. Conditional effects reveal that after the change in transparency, differences between board members and bank presidents remain, whereas differences between male and female members have diminished. What is more, FOMC members with a career in the government sector have been strongly affected by the regime shift in transparency.
Journal: Applied Economics
Pages: 1617-1643
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368994
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368994
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Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1617-1643
Template-Type: ReDIF-Article 1.0
Author-Name: Sun-Young Park
Author-X-Name-First: Sun-Young
Author-X-Name-Last: Park
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Title: The public value of improving a weather forecasting system in Korea: a choice experiment study
Abstract:
The Korean government plans to improve the quality of its weather forecasting system in order to increase its public utility. The benefits arising from the implementation of this plan should be measured. To this end, this study applies a choice experiment to four attributes: the update frequency of both short- and medium-range forecasts, and the accuracy of both. A survey of 1000 randomly selected households was undertaken in Korea. In the study results, the marginal willingness-to-pays, respectively, for one more update of the short-range forecast per day, for a 1% increase in the accuracy of the short-range forecast, for changing the update frequency of the medium-range forecast from once a day (reference level) to twice a day, and for a 1% increase in the accuracy of the medium-range forecast as a result of improving the weather forecast service were estimated to be KRW 499.3 (USD 0.45), 108.3 (0.10), 346.5 (0.31), and 80.9 (0.07) per household per month. The findings can provide policy-makers with useful information for both evaluating and planning improvements in the weather forecasting system.
Journal: Applied Economics
Pages: 1644-1658
Issue: 14
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1368995
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1368995
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Handle: RePEc:taf:applec:v:50:y:2018:i:14:p:1644-1658
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Jensen
Author-X-Name-First: Frank
Author-X-Name-Last: Jensen
Author-Name: Christian Elleby
Author-X-Name-First: Christian
Author-X-Name-Last: Elleby
Author-Name: Katell G. Hamon
Author-X-Name-First: Katell G.
Author-X-Name-Last: Hamon
Author-Name: Jos op de Weegh
Author-X-Name-First: Jos op de
Author-X-Name-Last: Weegh
Title: Testing theoretical explanations for investment behaviour in the Dutch beam trawler fishery in the North Sea
Abstract:
In this study, we investigate whether the neoclassical economic theory, capital market frictions or preference-based theory can explain investment behaviour in the Dutch beam trawler fishery in the North Sea. By presenting a number of estimations, we show that vessels conducting pulse fishing invest substantially more than similar vessels undertaking conventional fishing, even after controlling for differences in such variables as capital stock, prices, profits and quotas. One possible explanation for this result is that vessel owners may obtain a separate benefit from investing in pulse fishing.
Journal: Applied Economics
Pages: 2233-2248
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1540855
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540855
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Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2233-2248
Template-Type: ReDIF-Article 1.0
Author-Name: Madhu S. Mohanty
Author-X-Name-First: Madhu S.
Author-X-Name-Last: Mohanty
Title: Step-by-step computation of corrected asymptotic variance-covariance matrices of two-stage estimators in a simultaneous equations model with a mixture of four continuous and binary dependent variables
Abstract:
The current study presents easily computable formulas for asymptotic variance-covariance matrices of the two-stage estimators in a simultaneous equation model with a mixture of four continuous and binary dependent variables. For the sake of econometrics practitioners, the study uses an illustrative example from the current literature and demonstrates step-by-step computation of these variance-covariance matrices by using the matrix routine of a popular econometric software.
Journal: Applied Economics
Pages: 2249-2265
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1540856
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540856
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Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2249-2265
Template-Type: ReDIF-Article 1.0
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa
Author-X-Name-Last: Awaworyi Churchill
Title: The macroeconomy and microfinance outreach: a panel data analysis
Abstract:
This study examines the effects of macroeconomic and institutional factors on microfinance institution (MFI) outreach. To capture the performance of the macroeconomy, we include proxies for institutional quality, economic growth, FDI inflow, unemployment rate, inflation and the prevalence of wage-earning jobs. Further, we examine effects on outreach along the dimensions of outreach depth and outreach breadth. Using data on 1526 MFIs from 99 countries over the period 2000 to 2015, our results suggest that environments characterised by high levels of economic performance and good institutions tend to hinder outreach performance. These results suggest that MFIs depend on a poor economy to thrive given the informal nature of microfinance.
Journal: Applied Economics
Pages: 2266-2274
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1540857
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540857
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Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2266-2274
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Lloyd-Smith
Author-X-Name-First: Patrick
Author-X-Name-Last: Lloyd-Smith
Author-Name: Henry An
Author-X-Name-First: Henry
Author-X-Name-Last: An
Title: Are corporate social responsibility and advertising complements or substitutes in producing firm reputation?
Abstract:
A firm’s reputation is one of the critical drivers of success, and two of the key levers firms use to influence their perceived reputation are corporate social responsibility (CSR) and advertising. The relationship between CSR and advertising is important because whether they are complements or substitutes has different implications for how firms use these activities. Using a unique panel dataset of US-listed companies between 2005 and 2014, we estimate flexible production functions to identify whether CSR and advertising act as complements or substitutes in the production of firm reputation. A secondary motivation of this paper is to examine whether the use of different stakeholder ratings of firm reputation matters. We find evidence consistent with advertising and CSR being substitutes toward the production of firm reputation. Our results also show that advertising, own-firm CSR activities, and industry-level CSR spillovers contribute positively to firm reputation. Lastly, we find that the effects of CSR and advertising vary across the stakeholder groups (general public, business executives, or CSR experts) used in the analysis.
Journal: Applied Economics
Pages: 2275-2288
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1540858
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540858
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Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2275-2288
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Moran
Author-X-Name-First: Kevin
Author-X-Name-Last: Moran
Author-Name: Simplice Aimé Nono
Author-X-Name-First: Simplice Aimé
Author-X-Name-Last: Nono
Author-Name: Imad Rherrad
Author-X-Name-First: Imad
Author-X-Name-Last: Rherrad
Title: Does confidence data help forecast business cycles? New evidence from Canada
Abstract:
This paper assesses the contribution of confidence – or sentiment – data for predicting Canadian economic slowdowns. A probit framework is applied to an indicator of the status of the Canadian business cycle produced by the OECD. Explanatory variables include all available Canadian data on sentiment (from four distinct surveys) as well as macroeconomic and financial data. Sentiment data are introduced either as individual variables, as simple averages (such as confidence indices) and as confidence factors extracted from larger datasets containing all available sentiment data. Results indicate that the full potential of confidence data for forecasting Canadian business cycles obtains when factor models are used and all confidence data are utilized.
Journal: Applied Economics
Pages: 2289-2312
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1542119
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1542119
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Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2289-2312
Template-Type: ReDIF-Article 1.0
Author-Name: Deni Mazrekaj
Author-X-Name-First: Deni
Author-X-Name-Last: Mazrekaj
Author-Name: Kristof De Witte
Author-X-Name-First: Kristof
Author-X-Name-Last: De Witte
Author-Name: Sarah Vansteenkiste
Author-X-Name-First: Sarah
Author-X-Name-Last: Vansteenkiste
Title: Labour market consequences of a high school diploma
Abstract:
This article compares the labour market outcomes of high school dropouts to high school graduates who did not enrol into higher education, but immediately entered the labour market. Using parental educational background as an instrument on a rich administrative dataset in the Flemish Region of Belgium, we find no returns to a high school diploma on average. However, these results hide considerable heterogeneity by gender and educational track. While females and individuals in vocational education may benefit from a diploma, male graduates and students holding a general education diploma may even be worse off on the labour market than dropouts. We show that sectoral heterogeneity acts as an underlying mechanism in the returns to a high school diploma.
Journal: Applied Economics
Pages: 2313-2325
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1543939
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1543939
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Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2313-2325
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Yaghoubi Farani
Author-X-Name-First: Ahmad
Author-X-Name-Last: Yaghoubi Farani
Author-Name: Saeid Karimi
Author-X-Name-First: Saeid
Author-X-Name-Last: Karimi
Author-Name: Nasim Izadi
Author-X-Name-First: Nasim
Author-X-Name-Last: Izadi
Author-Name: Pouria Ataei
Author-X-Name-First: Pouria
Author-X-Name-Last: Ataei
Title: Effect of virtual social networks on entrepreneurial behaviour of agriculture students in Iran
Abstract:
The main purpose of this research was to investigate those factors influencing the entrepreneurial behaviour of agriculture students who were members of entrepreneurship learning and training groups in virtual communication networks. In doing this, a conceptual model was developed to examine the effects of characteristics of entrepreneurship virtual social networks and the degree of participation in these networks through entrepreneurial thinking and decision on entrepreneurial behaviour. The study population of this descriptive-correlational research was made up of 180 members of virtual social groups exchanging knowledge of entrepreneurship in WhatsApp and Viber networks. A total of 126 usable questionnaires were collected. Results indicated that participation in virtual social networks had both direct and indirect effects – through entrepreneurial thinking and decisions – on entrepreneurial behaviour. However, characteristics of entrepreneurship virtual networks had only indirect effect on entrepreneurial behaviour via entrepreneurial thinking. The study highlights certain implications for policymakers, (potential) entrepreneurs, entrepreneurship support organizations, researchers and underlines the potential of virtual social networking for promoting entrepreneurship.
Journal: Applied Economics
Pages: 2326-2335
Issue: 21
Volume: 51
Year: 2019
Month: 5
X-DOI: 10.1080/00036846.2018.1543940
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1543940
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Handle: RePEc:taf:applec:v:51:y:2019:i:21:p:2326-2335
Template-Type: ReDIF-Article 1.0
Author-Name: Ping Gao
Author-X-Name-First: Ping
Author-X-Name-Last: Gao
Author-Name: Junyi Shen
Author-X-Name-First: Junyi
Author-X-Name-Last: Shen
Title: An empirical analysis on the determinants of overweight and obesity in China
Abstract:
Overweight and obesity in adult populations is considered to be a growing epidemic worldwide, and appears to be rapidly increasing in China. From 1992 to 2002, the incidence of overweight in adults increased by 39.0%, while that of obesity doubled. To identify the determinants of adult overweight and obesity in China, micro-level data from a questionnaire survey entitled the ‘Preference Parameters Study,’ which was conducted by the Global Centers of Excellence programme at Osaka University, were analysed. In addition to the entire sample, data from urban and rural subsamples were also analysed in order to investigate whether the determinants of overweight and obesity differed. The results suggested that body mass index (BMI) is correlated with subjective well-being, gender, age, labour intensity and drinking and eating habits among urban respondents, and with age, monthly income, number of siblings and eating habits among rural respondents.
Journal: Applied Economics
Pages: 1923-1936
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229426
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229426
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Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1923-1936
Template-Type: ReDIF-Article 1.0
Author-Name: Yueming (Lucy) Qiu
Author-X-Name-First: Yueming (Lucy)
Author-X-Name-Last: Qiu
Author-Name: Xin Su
Author-X-Name-First: Xin
Author-X-Name-Last: Su
Author-Name: Yi David Wang
Author-X-Name-First: Yi David
Author-X-Name-Last: Wang
Title: Factors influencing commercial buildings to obtain green certificates
Abstract:
Identifying the key factors that influence commercial buildings’ decision to obtain voluntary green certificates is essential to building sustainability enhancement. Using commercial buildings in the state of New York, multinomial logit and nested logit models demonstrate that there is a significant correlation between the characteristics of commercial buildings (such as square footage, lot size, and years built) and green certification. More interestingly, if a commercial building is occupied by its owner, likelihood of green certification is actually smaller. This finding not only confirms that ongoing energy savings are heavily discounted when deciding whether to incur the upfront cost of green certification, but also suggests that the rental premium enjoyed by green buildings is likely greater in terms of present value than the expected operating cost savings. Another explanation could be that investor owners must operate in a competitive market for tenants while owner-occupiers do not operate in that competitive market, so they do not need to obtain green certificates to attract tenants. Consequently for policymakers, building owners that plan to rent out their commercial property space should be the early targets to promote green certification.
Journal: Applied Economics
Pages: 1937-1949
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229434
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229434
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Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1937-1949
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Clements
Author-X-Name-First: Kenneth
Author-X-Name-Last: Clements
Author-Name: Liang Li
Author-X-Name-First: Liang
Author-X-Name-Last: Li
Title: Understanding resource investments
Abstract:
The Millennium Boom of 2003–2011 made the resources industry highly profitable and led to a surge in new projects around the world. This had major implications for the Australian economy: Resource investment accounted for almost half of all business investment at the peak and the buoyancy of the sector helped Australia to avoid the worst of the global financial crisis. Using the event-study approach, this article examines the wealth-creating effects of new resource projects at the individual company level. The results indicate substantial increases in shareholder returns occur around the time of announcements of government approval for projects, the finalization of feasibility studies and changes in the status of projects such as when a company decides to finally commit to invest in a project. Government approval is the most important milestone in the life cycle of a project, where abnormal returns around 4% are realized on announcement day.
Journal: Applied Economics
Pages: 1950-1962
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229437
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229437
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Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1950-1962
Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Nan Wang
Author-X-Name-First: Chia-Nan
Author-X-Name-Last: Wang
Author-Name: Hsien-Pin Hsu
Author-X-Name-First: Hsien-Pin
Author-X-Name-Last: Hsu
Author-Name: Yen-Hui Wang
Author-X-Name-First: Yen-Hui
Author-X-Name-Last: Wang
Author-Name: Thi-Thu-Huyen Pham
Author-X-Name-First: Thi-Thu-Huyen
Author-X-Name-Last: Pham
Title: Performance assessment for electronic manufacturing service providers using two-stage super-efficiency SBM model
Abstract:
Manufacturing Service providers (EMSs) offer services to Original Equipment Manufacturers (OEMs). However, increasing challenges require an EMS to be more capable, adaptable and responsive. For survival, an EMS manager has to understand its relative efficiency in the industry. In addition, an investor also requires such information for investments. In this research, we propose a novel approach, which combines GM(1,1) with a two-stage super-efficiency slacks-based measure (SBM) model, to forecast and assess the efficiencies of 18 EMSs. The GM(1,1) was first used to forecast future data of EMSs, and then the two-stage super-efficiency SBM model was used to measure the marketability and profitability efficiencies for an EMU in two stages. The results build a ‘past-current-future’ view on the two efficiencies for each EMS. In addition, the profitability efficiency can help justify the reasonability of marketability efficiency. Our results showed that Hon Hai tops the rankings in both profitability and marketability efficiencies. These results also provided information about relative efficiencies of these EMSs, which helps EMS managers and investors to make better decisions.
Journal: Applied Economics
Pages: 1963-1980
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229446
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229446
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Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1963-1980
Template-Type: ReDIF-Article 1.0
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Waël Louhichi
Author-X-Name-First: Waël
Author-X-Name-Last: Louhichi
Title: Modelling the relationship between future energy intraday volatility and trading volume with wavelet
Abstract:
Although the energy and stock markets are both characterized by volatility and liquidity, and there has been substantial research to explore the relationship between volatility and trading volume (TV) in stock markets, few researchers have investigated this relationship in energy markets. Moreover, studies that have explored this association within energy markets did not describe its nature or impetus. To redress this oversight, we investigate this relationship using intraday data from the oil and gas markets – the most liquid energy markets in the world. In this way, the current article extends the previous studies through the use of a frequency approach to propose an original analysis of the relationship between volume and volatility. More specifically, we employ a continuous wavelet transform to identify the lead–lag phase between volatility and volume. This framework supplants usual time series modelling, as it uses a measure of coherence for different frequencies and time-scales to capture further changes and time variation in the volume–volatility relationship. Our results provide supportive evidence for the well-known positive relationship between realized volatility and TV, thereby supporting the mixture distribution hypothesis. In particular, our results show that volume causes volatility only during ‘turbulent times’, while volatility causes volume during ‘good times’. Furthermore, there is no relationship between volume and volatility in the long term, due to the absence of noise traders and liquidity traders in the long run. These findings are helpful for investors and policymakers as they contribute to better forecast the TV and price volatility during turbulent and calm periods and over several investment horizons.
Journal: Applied Economics
Pages: 1981-1993
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1229453
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1229453
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Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1981-1993
Template-Type: ReDIF-Article 1.0
Author-Name: Youxing Huang
Author-X-Name-First: Youxing
Author-X-Name-Last: Huang
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Title: Wage, foreign-owned firms, and productivity spillovers via labour turnover: a non-linear analysis based on Chinese firm-level data
Abstract:
Using firm-level panel data from Chinese manufacturing firms over the period 2004–2007, this article investigates the impact of the wage gap between local and foreign-owned firms on foreign direct investment (FDI) spillovers in terms of total factor productivity (TFP). We find a non-linear threshold effect that: a low-level wage gap threshold exists, below which FDI spillovers are significantly negative. This is because FDI spillovers via labour turnover are blocked due to the low wages of local firms, which jeopardizes the flow of skilled workers from foreign firms to local firms. In contrast, when the wage gap reaches a high-level threshold, local firms can get benefits from FDI spillovers. The reason is that high wages of local firms attract skilled employees to leave foreign firms, which yields a large magnitude of worker mobility from foreign firms to local firms. Our article provides evidence that labour turnover as the channel of FDI spillovers only works when the wage gap is beyond some threshold. Also, these thresholds vary across regions and firm ownerships.
Journal: Applied Economics
Pages: 1994-2010
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1231899
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231899
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Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:1994-2010
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Y. Mathä
Author-X-Name-First: Thomas Y.
Author-X-Name-Last: Mathä
Author-Name: Alessandro Porpiglia
Author-X-Name-First: Alessandro
Author-X-Name-Last: Porpiglia
Author-Name: Michael Ziegelmeyer
Author-X-Name-First: Michael
Author-X-Name-Last: Ziegelmeyer
Title: Cross-border commuting and consuming: an empirical investigation
Abstract:
This article contributes to our understanding of cross-border activity in general and the determinants of cross-border trade in particular by focusing on the part of cross-border sales that arise due to work-related cross-border crossings of households. We analyse empirically how cross-border consumption expenditures vary across product and services categories as well as household characteristics using representative household survey data of cross-border commuters to Luxembourg. In total, these households spend an estimated 17% of their gross annual income across the border, contributing about 10% to the total household final consumption expenditure (HFCE) in Luxembourg. Cross-border expenditure is linked to individual- and household-related characteristics and to distance between home and work. Cross-border commuters systematically exploit arbitrage opportunities that arise because of existing price level (index) differences between the country of work and the country of residence.
Journal: Applied Economics
Pages: 2011-2026
Issue: 20
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1231902
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231902
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Handle: RePEc:taf:applec:v:49:y:2017:i:20:p:2011-2026
Template-Type: ReDIF-Article 1.0
Author-Name: Laura López-Torres
Author-X-Name-First: Laura
Author-X-Name-Last: López-Torres
Author-Name: Diego Prior
Author-X-Name-First: Diego
Author-X-Name-Last: Prior
Author-Name: Daniel Santín
Author-X-Name-First: Daniel
Author-X-Name-Last: Santín
Title: Assessing the effect of educational programs on public schools’ performance
Abstract:
This paper provides evidence on the effectiveness in the implementation of an educational program which offered public schools in Catalonia (Spain) the opportunity to improve the quality of educational provision. We employ a difference-in-differences approach on rich balanced panel data of public schools. The results confirm that the program did effectively improve students’ achievement and reduce absenteeism, albeit not for all modules and school types or across all years. Our results highlight that it is important to condition the delivery of resources upon specific academic goals depending on the characteristics of the treated population. Additionally, program results suggest the need to enhance educational program design in order to get better evaluation feedback.Abbreviations: DoE: Department of Education; EU: European Union; PMQCE: Projecte per a la Millora de la Qualitat dels Centres Educatius; DiD: Differences-in-Differences; SFDC: Schools Facing Disadvantaged Conditions; OECD: Organization for Economic Co-operation and Development; REA: Regional Educational Authority
Journal: Applied Economics
Pages: 5205-5226
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610712
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610712
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Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5205-5226
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Briand
Author-X-Name-First: Steve
Author-X-Name-Last: Briand
Title: Time inconsistency and delayed retirement decision: the French pension bonus
Abstract:
With the increase in life expectancy and demographic shocks, several public policies in the last decades aim to encourage individuals to postpone retirement. One of them, the pension bonus, gives an increased pension if individuals retire beyond their Full Retirement Age. Previous ex post analyses found that the responsiveness to this type of financial incentives, which encourage to postpone retirement, is heterogeneous among agents and that the global effect is rather limited. Deriving from previous research in Behavioural Economics, this article analyses the impact of time inconsistency in the decision to delay retirement to get the bonus. Using public national survey data, short-term and long-term impatience are measured with questions on retiring motivations. After controlling for the endogeneity of the bonus knowledge, econometric results show that time-inconsistent agents are less likely to retire with the bonus.
Journal: Applied Economics
Pages: 5227-5242
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610718
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610718
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Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5227-5242
Template-Type: ReDIF-Article 1.0
Author-Name: Benjiang Ma
Author-X-Name-First: Benjiang
Author-X-Name-Last: Ma
Author-Name: Zhongmin Zhou
Author-X-Name-First: Zhongmin
Author-X-Name-Last: Zhou
Author-Name: Xiaohong Chen
Author-X-Name-First: Xiaohong
Author-X-Name-Last: Chen
Title: Financing difficulties for SMEs and credit rationing – an expanded model of mortgage loans with asymmetric information
Abstract:
This article presents a new model of mortgage loans under reasonable assumptions. A several key variables that affects the success of a project, such as project risk, total investment, lending rate,mortgage, and self-financing are jointly considered in the model. The model takes the participation constraints and the incentive compatibility constraints into account for enterprises and banks on project investment actions respectively. Our model can explain the coexistence scenario of small medium enterprises’ (SMEs) financing difficulties and credit rationing in credit markets with asymmetric information. It reveals that higher enterprise self-financing for the project is a “credible factor” to the bank. Banks put forward strict requirements on mortgage for the SMEs with low proportion of project self-financing, which will lead to two scenarios:one is that some SMEs would not get loans due to insufficient mortgage assets; other is that some SMEs will voluntarily give up loans because of loan requirements, even if they have enough mortgage assets. Rationing is implemented both to large enterprises and SMEs, but the degree of rationing is gradually strengthened with the reduction of self-financing scale for the project.
Journal: Applied Economics
Pages: 5243-5257
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1610721
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1610721
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Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5243-5257
Template-Type: ReDIF-Article 1.0
Author-Name: Vinh Huy Nguyen
Author-X-Name-First: Vinh Huy
Author-X-Name-Last: Nguyen
Author-Name: Richard Holowczak
Author-X-Name-First: Richard
Author-X-Name-Last: Holowczak
Author-Name: Suchismita Mishra
Author-X-Name-First: Suchismita
Author-X-Name-Last: Mishra
Title: Intermarket sweep order trade size clustering around corporate announcements
Abstract:
Investors have different trade size preferences depending on their information advantage. Using intermarket sweep orders (ISOs), we find that investors appear to prefer using small, round lot trades around corporate events with higher announcement frequency and more predictable timing, such as earnings announcements. Around these corporate events, information is revealed, and analyst estimates are confirmed or rejected. Conversely, share repurchase announcements happen less frequently and the timing of these announcements are unpredictable. Relative to earnings announcements, share repurchase announcements create more uncertainty than they resolve. We find that when investors have less information, they tend to use costlier, larger trade size multiples. We further support the extant finding that trade sizes are smaller with the advent of high-frequency trading.
Journal: Applied Economics
Pages: 5258-5267
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1612029
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1612029
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Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5258-5267
Template-Type: ReDIF-Article 1.0
Author-Name: Kurmaş Akdoğan
Author-X-Name-First: Kurmaş
Author-X-Name-Last: Akdoğan
Title: Size and sign asymmetries in house price adjustments
Abstract:
Long-run mean-reversion in real house prices is determined by the relative strength of fundamental factors against the short-run influences. This article suggests that the adjustment towards the long-run trend in house prices could display non-linear behaviour due to some intrinsic characteristics of the housing market. Accordingly, sign and size asymmetries as well as possible structural breaks are taken into account in a unit root testing exercise for twenty-nine countries. Our results suggest that mean-reversion exists for seventy percent of the countries in our sample. Moreover, the out-of-sample forecasting performance of our non-linear models in predicting house prices is better than a simple auto-regressive benchmark for some countries.
Journal: Applied Economics
Pages: 5268-5281
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1612030
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1612030
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Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5268-5281
Template-Type: ReDIF-Article 1.0
Author-Name: Alfred A. Haug
Author-X-Name-First: Alfred A.
Author-X-Name-Last: Haug
Author-Name: Syed Abul Basher
Author-X-Name-First: Syed Abul
Author-X-Name-Last: Basher
Title: Exchange rates of oil exporting countries and global oil price shocks: a nonlinear smooth-transition approach
Abstract:
This paper models logistic and exponential smooth transition adjustments of real exchange rates for six major oil-exporting countries in response to different shocks affecting oil prices. The logistic form captures asymmetric and the exponential form symmetric adjustments in regards to positive and negative oil price shocks. We chose oil-exporting countries that do not peg their exchange rates. For most countries, we detect no statistically significant non-linearities for the adjustment process of real exchange rate returns, be they asymmetric or symmetric, in response to oil supply shocks, idiosyncratic oil-market-specific shocks, and speculative oil-market shocks. Exceptions are oil supply shocks in the UK and possibly Brazil, where exchange rates respond nonlinearly, though the effects are symmetric for both countries. On the other hand, global aggregate demand shocks, which are shocks not originating directly in the oil market, have nonlinear asymmetric effects on real exchange rate returns for Canada, Mexico, Norway and Russia, and nonlinear symmetric effects for Brazil and the UK.
Journal: Applied Economics
Pages: 5282-5296
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1612031
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1612031
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Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5282-5296
Template-Type: ReDIF-Article 1.0
Author-Name: Luisa Alamá-Sabater
Author-X-Name-First: Luisa
Author-X-Name-Last: Alamá-Sabater
Author-Name: Manuel Cantavella
Author-X-Name-First: Manuel
Author-X-Name-Last: Cantavella
Title: Spatial income and public capital: a case of a Spanish region
Abstract:
The objective of this paper is to analyse major determinants of disposable per capita income at a local municipality level for a territory of Spain: the Valencian region. A cross-sectional spatial study for an averaged period (2010–2013) will allow us to control for intraregional correlation, paying special attention to the role of real public investment and its possible effects on disposable personal income. A reference framework for economic and social policymakers will be provided by the specification of the model.
Journal: Applied Economics
Pages: 5297-5309
Issue: 48
Volume: 51
Year: 2019
Month: 10
X-DOI: 10.1080/00036846.2019.1613500
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1613500
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Handle: RePEc:taf:applec:v:51:y:2019:i:48:p:5297-5309
Template-Type: ReDIF-Article 1.0
Author-Name: Jiong Gong
Author-X-Name-First: Jiong
Author-X-Name-Last: Gong
Author-Name: Ping Jiang
Author-X-Name-First: Ping
Author-X-Name-Last: Jiang
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Title: Fund flows and performance: understanding distribution channel
Abstract:
This paper investigates the relevance and working mechanisms of fund distribution channels to subsequent fund inflows. Using a comprehensive dataset in China from 2004 to 2010, we find that more brokerage distribution but less commercial bank distribution significantly increases subsequent fund inflows. Further evidence indicates that the flow effect of fund distribution channels is more consistent with the limited attention hypothesis rather than the signal hypothesis. In particular, more brokerage distribution increases fund holdings by less sophisticated individual investors. Moreover, distribution channels affect the flow-performance relationship. Finally, the flow effect of fund distributional channels is sensitive to changes in regulations of fund distribution practices.
Journal: Applied Economics
Pages: 2885-2900
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1563669
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1563669
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Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2885-2900
Template-Type: ReDIF-Article 1.0
Author-Name: Jiayi Balasuriya
Author-X-Name-First: Jiayi
Author-X-Name-Last: Balasuriya
Author-Name: Yu Yang
Author-X-Name-First: Yu
Author-X-Name-Last: Yang
Title: The role of personality traits in pension decisions: findings and policy recommendations
Abstract:
Many countries need to stimulate pension participation and contribution to ensure their citizens are prepared adequately for retirement. Identifying at-risk groups with tendencies of not joining pension plans will help governments target strategies to improve pension awareness and participation. This study investigates the role of personality traits in pension decision making using data from the UK Household Longitudinal Study. Our results demonstrate that Extraversion significantly correlates with non-participation in private pensions, including both employer run and personal pensions. Individuals who are high in Conscientiousness are more likely to participate and pay more into personal pensions. Openness to experience is negatively correlated with saving via personal pensions. Agreeableness and Extraversion correlate inversely with the amount contributed to personal plans. This paper discusses our findings in detail and offers policy implications which may help promote pension participation and ease the problem of old age poverty.
Journal: Applied Economics
Pages: 2901-2920
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1563670
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1563670
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Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2901-2920
Template-Type: ReDIF-Article 1.0
Author-Name: Florin Medeleanu
Author-X-Name-First: Florin
Author-X-Name-Last: Medeleanu
Author-Name: Ciprian Răcuciu
Author-X-Name-First: Ciprian
Author-X-Name-Last: Răcuciu
Author-Name: Madlena Nen
Author-X-Name-First: Madlena
Author-X-Name-Last: Nen
Author-Name: Zieduna Liepe
Author-X-Name-First: Zieduna
Author-X-Name-Last: Liepe
Author-Name: Narcis Florentin Antonie
Author-X-Name-First: Narcis Florentin
Author-X-Name-Last: Antonie
Title: Fair e-lottery system proposal based on anonymous signatures
Abstract:
The games in which large amount of money is involved are always called into question about the existence of the possibility to manipulate the game for an immediate benefit. Lottery system is not an exception in this regard; moreover, it is a subject of rumours that the game is not as fair as it is pretended to be. After studying the advantages and drawbacks of conventional lottery systems, the authors are proposing an e-lottery system based on anonymous signatures. Even though the proposal is using electronic signatures, which imply complex calculus and the possession of digital certificates for each player, the proposed system compensates these drawbacks by increasing trust and confidence of both the players and the lottery organizer. This will lead to more players participating in the lottery, which translates to more revenue for the lottery and larger prizes for the players.
Journal: Applied Economics
Pages: 2921-2933
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1563671
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1563671
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Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2921-2933
Template-Type: ReDIF-Article 1.0
Author-Name: Gregory M. Foggitt
Author-X-Name-First: Gregory M.
Author-X-Name-Last: Foggitt
Author-Name: André Heymans
Author-X-Name-First: André
Author-X-Name-Last: Heymans
Author-Name: Gary Van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: Van Vuuren
Title: Measuring the systemic risk transfer from the United States to the South African financial sector
Abstract:
The sub-prime crisis in 2008 illustrated how systemic risk in the financial sector of one country could spread to the financial sectors in other countries, and subsequently result in a global financial crisis. This direct transfer of systemic risk was made possible by phenomena such as contagion and common shocks. The way in which these elements of interconnectedness can magnify seemingly small levels of systemic risk, and subsequently transfer between financial sectors illustrate the necessity for a more in-depth analysis. This measurement is done using three approaches. A dynamic conditional correlation (DCC) model is used to investigate contagion. To analyse the volatility spillover effect from the US to SA, an exponential generalized autoregressive conditional heteroskedastic (EGARCH) model is employed. Finally, a new contribution is made where a marginal expected shortfall (MES) model is used to set the FTSE/JSE All-Share Index (ALSI) as a hypothetical bank in the financial sector of the S&P 500. All approaches show weak evidence for a direct systemic risk transfer and therefore indicate that any systemic risk transfer is more likely to take an indirect form through changes in capital flows or interest rates.
Journal: Applied Economics
Pages: 2934-2944
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564014
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564014
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Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2934-2944
Template-Type: ReDIF-Article 1.0
Author-Name: Julia Meyer
Author-X-Name-First: Julia
Author-X-Name-Last: Meyer
Title: Outreach and performance of microfinance institutions: the importance of portfolio yield
Abstract:
In this paper, we examine the interaction between social outreach and financial return in microfinance. Running multivariate regression models and using 1,805 observations of microfinance institutions between 2004 and 2013, we find strong evidence suggesting that institutions with more social engagement – in terms of outreach to the poor – earn higher portfolio yields. We also find that measures of outreach are associated with increased operating expenses. As return figures are influenced by both costs and yield, and because both increase to a similar degree with the depth of outreach, these two effects lead to a zero sum result on return measures. This finding could explain why existing studies assessing the interaction between social outreach and different measures of financial performance in microfinance (such as return on assets/equity, operating expenses, operational self-sufficiency) have not produced consistent results.
Journal: Applied Economics
Pages: 2945-2962
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564016
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564016
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Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2945-2962
Template-Type: ReDIF-Article 1.0
Author-Name: Ning Jia
Author-X-Name-First: Ning
Author-X-Name-Last: Jia
Title: Heterogeneous effects of merit scholarships: do program features matter?
Abstract:
This paper examines the role of program features in determining the effectiveness of merit scholarships on educational outcomes using data from the 2009 to 2014 American Community Survey. Exploiting the variation in the timing of program adoption as well as program features across states, I find that leniency of academic requirements for initial eligibility largely contributes to program effects on associate’s degree completion, whereas generosity of scholarship amount significantly increases college attendance and bachelor’s degree completion. The estimates also indicate that lower requirements for scholarship renewal appear to positively affect the likelihood of completing a degree in science, technology, engineering, and mathematics fields (STEM). The findings suggest that leniency and generosity are important determinants of program effectiveness on educational outcomes. It is thus relevant to take program features into account when designing merit scholarships.
Journal: Applied Economics
Pages: 2963-2979
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564017
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564017
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Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2963-2979
Template-Type: ReDIF-Article 1.0
Author-Name: Melanie Krause
Author-X-Name-First: Melanie
Author-X-Name-Last: Krause
Author-Name: Stefan Szymanski
Author-X-Name-First: Stefan
Author-X-Name-Last: Szymanski
Title: Convergence versus the middle-income trap: the case of global soccer
Abstract:
Unconditional convergence across countries worldwide is typically rejected in terms of GDP per capita. But when focusing on a specific internationally competitive industry, such as manufacturing, rather than the overall economy, unconditional convergence has been found to hold. As the epitome of competition and globalization, this paper uses the performance of national soccer teams as a further test case. We rely on data of more than 25,000 games between 1950 and 2014 and find clear evidence of unconditional $$\beta $$β
- and $$\sigma $$σ
-convergence in national team performance, as measured either by win percentages or goal difference. We argue that transfer of technologies, skills and best practices fosters this catch-up process. But there are limits: we show that good teams from Africa and Asia are failing to close the gap with top European or South American teams for reasons that are analogous to the 'middle income trap'. Lessons for other sectors include the virtues of internationally transferable human capital as well as the mixed blessings of regional integration for worldwide convergence.
Journal: Applied Economics
Pages: 2980-2999
Issue: 27
Volume: 51
Year: 2019
Month: 6
X-DOI: 10.1080/00036846.2018.1564018
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1564018
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Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2980-2999
Template-Type: ReDIF-Article 1.0
Author-Name: Clinton L. Neill
Author-X-Name-First: Clinton L.
Author-X-Name-Last: Neill
Author-Name: Rodney B. Holcomb
Author-X-Name-First: Rodney B.
Author-X-Name-Last: Holcomb
Author-Name: B. Wade Brorsen
Author-X-Name-First: B. Wade
Author-X-Name-Last: Brorsen
Title: Current market conditions for veterinary services in the U.S
Abstract:
The veterinary industry has been plagued by low growth in income, yet flourished in growth of new veterinarians. By using a labour-/work-hour approach that allows for proper matching of the data, we develop a supply and demand model of companion animal services in the veterinary medicine profession. We use data from two unique sources that allow demand estimation by companion animal type and lets supply vary by practice type. The results here suggest that low income growth, relative to doctors and dentists, may be from allowing supply to outpace demand for veterinary services.
Journal: Applied Economics
Pages: 6501-6511
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489518
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489518
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Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6501-6511
Template-Type: ReDIF-Article 1.0
Author-Name: Tolina Fufa
Author-X-Name-First: Tolina
Author-X-Name-Last: Fufa
Author-Name: Jaebeom Kim
Author-X-Name-First: Jaebeom
Author-X-Name-Last: Kim
Title: Financial development, economic growth and convergence clubs
Abstract:
To study the role of financial development in economic growth, we apply an array of convergence tests designed to capture nonlinear transitional dynamics to real outputs per capita. Strong evidence of multiple convergence clubs is observed, implying that the clubs are formed based on the initial level of real output per capita and average growth rate. Our empirical results show that the stage of economic growth of each country plays an important role for the composition of the convergence clubs. Furthermore, financial development emerges to be a significant determinant, albeit plays differently in the economic growth of each convergence club.
Journal: Applied Economics
Pages: 6512-6528
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489521
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489521
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Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6512-6528
Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Mehmet Umutlu
Author-X-Name-First: Mehmet
Author-X-Name-Last: Umutlu
Title: Strategies can be expensive too! The value spread and asset allocation in global equity markets
Abstract:
Is the value spread useful for forecasting returns on quantitative equity strategies for country selection? To test this, we examine a sample of 120 country-level equity strategies replicated within 72 stock markets for the years 1996–2017. The value spread is a powerful and robust predictor of strategy returns in the cross-section, subsuming other methods based on momentum, reversal, or seasonality. Going long (short) the strategies with the broadest (narrowest) value spread produces significant four-factor model alphas, markedly outperforming an equal-weighted benchmark of all of the strategies. The results are robust to many considerations.
Journal: Applied Economics
Pages: 6529-6546
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489523
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489523
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Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6529-6546
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Baptiste Combes
Author-X-Name-First: Jean-Baptiste
Author-X-Name-Last: Combes
Author-Name: Robert Francis Elliott
Author-X-Name-First: Robert Francis
Author-X-Name-Last: Elliott
Author-Name: Diane Skåtun
Author-X-Name-First: Diane
Author-X-Name-Last: Skåtun
Title: Hospital staff shortage: the role of the competitiveness of pay of different groups of nursing staff on staff shortage
Abstract:
Shortages of nursing staff in OECD countries have been a preoccupation for policy makers. Shortages of staff may be the consequence of uncompetitive pay. In the private sector, employers in different regions can offer different pay rates to reflect local amenities and cost of living. Hospitals in the UK however cannot set the pay for their employees, and as a result they might therefore incur staff shortages. Moreover, occupational groups do not operate in isolation. Shortages of staff may also be the consequence of the competitiveness of pay of an alternative group of staff. This is investigated using two distinct groups of nursing staff: assistant nurses (ANs) and registered nurses (RNs) working in English hospitals in 2003–2005 using national-level data sets. We find that an increase by 10% of the pay competitiveness of RNs decreases the shortage of both the RNs and of ANs by 0.6% and 0.4%, respectively.
Journal: Applied Economics
Pages: 6547-6552
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1490000
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490000
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Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6547-6552
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroaki Suenaga
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Suenaga
Author-Name: Gary Madden
Author-X-Name-First: Gary
Author-X-Name-Last: Madden
Title: Understanding the equilibrium dynamics of European broadband diffusion
Abstract:
This study examines the equilibrium dynamics of European broadband markets within a simultaneous demand and supply model. Unlike alternative reduced-form approaches, our model explicitly incorporates key features of the demand for network services: a bell-shaped distribution of heterogeneous consumers and presence of network effects. Our empirical analysis of European countries reveals that although the demand for broadband services exhibits strong network effects they are not ‘strong enough’ to archive critical mass in these markets. Furthermore, the systems equilibrium dynamics show that even though the technology is introduced at very high prices initially, the expansion of suppliers’ infrastructure investment reduces the equilibrium prices rapidly in the first few years. This price reduction, combined with strong network effects, stimulates expansion of the subscription base until consumers at the peak of the distribution enter the market. Convergence to the steady state happens at around 8 years for service price and 15 years for subscription. Comparative static analysis illustrates that steady state equilibrium subscription relates positively to national population density, inter-platform concentration, and the share of unbundled local loop, while the equilibrium price relates inversely to these factors. Other supply and demand factors (viz. intra-platform concentration, income and education) have minimal impact on the steady state equilibrium.
Journal: Applied Economics
Pages: 6553-6568
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1490002
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490002
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Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6553-6568
Template-Type: ReDIF-Article 1.0
Author-Name: John Dagpunar
Author-X-Name-First: John
Author-X-Name-Last: Dagpunar
Title: A critique of the paper by Kanabar, R. and Simmons, P. (2016), ‘To defer or not to defer? UK state pension and work decisions in a lifecycle model’, Applied Economics, 48, 58, 5699-5716
Abstract:
We suggest corrections to the paper by Kanabar and Simmons and provide analyses for deriving the internal rate of return arising from a UK state pension deferral decision and for an actuarially fair deferral scheme.
Journal: Applied Economics
Pages: 6569-6575
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1490003
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490003
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Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6569-6575
Template-Type: ReDIF-Article 1.0
Author-Name: Edmond Baranes
Author-X-Name-First: Edmond
Author-X-Name-Last: Baranes
Author-Name: Scott J. Savage
Author-X-Name-First: Scott J.
Author-X-Name-Last: Savage
Title: Access prices, unbundling and product variety in European Internet markets
Abstract:
A fundamental policy in European broadband regulation is unbundled access to the local loop of the incumbent telephone company. We present comparative static results that show as the access price decreases, the retail price decreases, the variety of plans offered by Internet service providers increases and the quantity of each variety increases when a threshold condition is met. Using data from 18 European countries from 2006 to 2012, we find empirical support for these results when Internet product variety is measured by variation in download speeds.
Journal: Applied Economics
Pages: 6576-6587
Issue: 60
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1493187
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1493187
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Handle: RePEc:taf:applec:v:50:y:2018:i:60:p:6576-6587
Template-Type: ReDIF-Article 1.0
Author-Name: Yoshito Funashima
Author-X-Name-First: Yoshito
Author-X-Name-Last: Funashima
Title: Wagner’s law versus displacement effect
Abstract:
The public sector has grown dramatically over the past few centuries in many developed countries. In this article, we use wavelet methods to distinguish between two leading explanations for this growth – Wagner’s law and the displacement effect. In doing so, we use the long-term data of 10 OECD countries for a maximum time span of 1800–2009. We find that the validity of Wagner’s law is likely to vary strongly over time for each country. A roughly similar feature in most of the countries is that the law is less valid in the earliest stage of economic development as well as in the advanced stages, with the validity tending to follow an inverted U-shaped pattern with economic development. Further, our results indicate that the long-run growth of government size cannot be adequately explained by Wagner’s law. On the other hand, the displacement effect appears to account for the bulk of the growth in most of the countries.
Journal: Applied Economics
Pages: 619-634
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203063
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203063
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Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:619-634
Template-Type: ReDIF-Article 1.0
Author-Name: Md. Samsul Alam
Author-X-Name-First: Md. Samsul
Author-X-Name-Last: Alam
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Title: Natural gas, trade and sustainable growth: empirical evidence from the top gas consumers of the developing world
Abstract:
Natural gas is the key non-renewable source of energy for a low-carbon economy. The research applies heterogeneous panel techniques to investigate the impact of natural gas consumption on economic growth across a panel of top 15 natural gas consumers of the developing world. We establish long-run dynamics with cross-sectional dependence and heterogeneity across the sample countries. The long-run output elasticities suggest that the natural gas consumption and trade variables have significant positive effect on the output in a panel of developing economies. Further, we establish feedback relationship among gas consumption, output and trade in the short-run. Given the significance of natural gas as the low-emission source of energy, we suggest governments and policy advisers of these major natural gas consumers to focus on developing pipeline infrastructure for adequate supply, reforming natural gas sector with a competitive price structure to combat excess demand in individual natural gas market. With trade integration, majority of these countries need to incorporate these initiatives to improve the technologies such as combined cycle power plant technology and value-added chemical production technology to achieve sustainable economic growth.
Journal: Applied Economics
Pages: 635-649
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203064
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203064
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Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:635-649
Template-Type: ReDIF-Article 1.0
Author-Name: Kannika Duangnate
Author-X-Name-First: Kannika
Author-X-Name-Last: Duangnate
Author-Name: James W. Mjelde
Author-X-Name-First: James W.
Author-X-Name-Last: Mjelde
Title: Effects of the structural change on transaction costs between North America natural gas spot markets
Abstract:
Threshold cointegration between market pairs before and after the potential structural break associated with the shale gas revolution is examined. Pairwise transaction costs differ between the pre- and post-break periods. During the post-break period, five of seven pairwise transaction costs decrease, while the remaining two pair-wise transaction costs increase relative to the pre-break period. Alterations in natural gas flows as the result of the shale gas revolution partially explain the changes in transaction costs.
Journal: Applied Economics
Pages: 650-663
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203065
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203065
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Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:650-663
Template-Type: ReDIF-Article 1.0
Author-Name: Rama Malladi
Author-X-Name-First: Rama
Author-X-Name-Last: Malladi
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Title: Skillful hiding: evaluating hedge fund managers’ performance based on what they hide
Abstract:
Mandatory disclosure of hedge fund portfolios has been a hotly debated topic. This article studies asset returns of ‘confidential holdings’ (confidentiality treatment [CT]) or those assets that were not voluntarily disclosed by US-based hedge funds in their original 13F filings to the Securities and Exchange Commission. After analysing returns from 1999 to 2013, we find that in aggregate, the CT position size, ownership share and returns are statistically different to non-CT positions. We provide a mechanism for regulators and investors to rank fund managers based on what they hide in positions.
Journal: Applied Economics
Pages: 664-676
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203066
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203066
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Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:664-676
Template-Type: ReDIF-Article 1.0
Author-Name: David E Allen
Author-X-Name-First: David E
Author-X-Name-Last: Allen
Author-Name: Michael McAleer
Author-X-Name-First: Michael
Author-X-Name-Last: McAleer
Author-Name: Abhay K Singh
Author-X-Name-First: Abhay K
Author-X-Name-Last: Singh
Title: An entropy-based analysis of the relationship between the DOW JONES Index and the TRNA Sentiment series
Abstract:
This article features an analysis of the relationship between the DOW JONES Industrial Average (DJIA) Index and a sentiment news series using daily data obtained from the Thomson Reuters News Analytics (TRNA) provided by SIRCA (The Securities Industry Research Centre of the Asia Pacific). The recent growth in the availability of on-line financial news sources, such as internet news and social media sources provides instantaneous access to financial news. Various commercial agencies have started developing their own filtered financial news feeds which are used by investors and traders to support their algorithmic trading strategies. TRNA is one such data set. In this study, we use the TRNA data set to construct a series of daily sentiment scores for DJIA stock index component companies. We use these daily DJIA market sentiment scores to study the relationship between financial news sentiment scores and the stock prices of these companies using entropy measures. The entropy and mutual information (MI) statistics permit an analysis of the amount of information within the sentiment series, its relationship to the DJIA and an indication of how the relationship changes over time.
Journal: Applied Economics
Pages: 677-692
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1203067
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1203067
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Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:677-692
Template-Type: ReDIF-Article 1.0
Author-Name: Ye Xue
Author-X-Name-First: Ye
Author-X-Name-Last: Xue
Author-Name: Yiting Huang
Author-X-Name-First: Yiting
Author-X-Name-Last: Huang
Title: Study on the price co-movement among the Asia Pacific, European and Chinese coal markets – based on the empirical analysis of MS-VEC model
Abstract:
In this article, based on weekly data of the three major coal markets (the Asia Pacific, Europe and China) from March 2008 to November 2014, an empirical research on their mutual influence and price co-movement effect among the three major coal markets is conducted by using the Co-integration Theory, Granger Causality Test and markov switching-Vector Error Correction (MS-VEC) model. The conclusions are as follows. (1) There exists a long-term cointegration relationship and bidirectional causality relationship between coal prices at home and abroad, and the influences of foreign coal markets on the domestic coal markets are stronger than the influences of domestic coal markets on foreign coal markets, and thus the interaction between the two markets leads to asymmetric linkage effects. (2) Compared with the VEC model, the MS-VEC model can reflect the nonlinear feature of price co-movement effects. (3) There exists an inherent adjustment mechanism between domestic and foreign coal markets, i.e. the coal prices will be self-revised continuously until a long-term equilibrium state is achieved when a deviation from the equilibrium state occurs. (4) There exists a co-movement effect which varies with the change of regime among the three coal prices, and the self-maintenance is strong and the status transfer phenomenon is clear in different regimes.
Journal: Applied Economics
Pages: 693-701
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205720
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205720
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Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:693-701
Template-Type: ReDIF-Article 1.0
Author-Name: Anping Chen
Author-X-Name-First: Anping
Author-X-Name-Last: Chen
Author-Name: Nicolaas Groenewold
Author-X-Name-First: Nicolaas
Author-X-Name-Last: Groenewold
Title: An increase in the retirement age in China: the regional economic effects
Abstract:
China’s pension system is in need of comprehensive reform. One measure on which we focus is to increase the retirement age. It is likely that a change in retirement age will have significantly different effects across China’s regions. Interregional disparities are already very substantial in China and it will be important to know how changes in pension arrangements will affect disparities. We consider four policies to increase the retirement age from 60 to 61. They differ according the use made of the extra revenue generated by the policy. All four policies increase welfare and reduce the interregional welfare gap.
Journal: Applied Economics
Pages: 702-721
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1205721
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1205721
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Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:702-721
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: ebi-ebi
Issue: 7
Volume: 49
Year: 2017
Month: 2
X-DOI: 10.1080/00036846.2016.1213580
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1213580
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Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Yimin Xu
Author-X-Name-First: Yimin
Author-X-Name-Last: Xu
Author-Name: Jakob de Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: de Haan
Title: The time-varying relationship between credit spreads and employment growth
Abstract:
After the global financial crisis, several central banks introduced unconventional monetary policies, such as quantitative easing (QE). If QE increases asset prices, but does not boost the real economy to the same extent, the relationship between credit spreads and employment growth will weaken. This study investigates this issue for the U.S. in a moving-windows framework. Our results suggest that the link between credit spreads and employment growth is lower during bubbles and recessions. We also find that the relationship weakened after the Fed introduced QE.
Journal: Applied Economics
Pages: 4387-4401
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1450483
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450483
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Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4387-4401
Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Shen
Author-X-Name-First: Xuan
Author-X-Name-Last: Shen
Author-Name: Valentina Hartarska
Author-X-Name-First: Valentina
Author-X-Name-Last: Hartarska
Title: Winners and losers from financial derivatives use: evidence from community banks
Abstract:
This article provides empirical evidence on how profitability of small community banks was affected by derivatives use before and after the 2008 crisis. We use an endogenous switching regressions model to estimate the sensitivity of bank profitability to risks and control for the endogenous choice to use or not to use derivatives. We then compute counterfactual effects and show how profitability would have looked without derivatives use for banks that used derivatives and how it would have looked with derivatives for banks that did not use derivatives. The results show that derivatives helped reduce the sensitivity of profitability to credit risks and improved profitability for most specialists. However, for the largest number of banks which are non-user non-specialists, devivates use would have resulted in lower return on assets had they used derivatives post 2008. Therefore, our evidence suggests that implementation of the Volcker Rule, imposing high compliance costs on community banks and, thus, discouraging hedging, may have a negative impact on profits of specialists banks but, overall, a neutral effect on profits in the community banks industry as a whole.
Journal: Applied Economics
Pages: 4402-4417
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1450484
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450484
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Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4402-4417
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Title: Directional time-varying partial correlation with the Gaussian copula–DCC–GARCH model
Abstract:
This article suggests a directional time-varying partial correlation based on the dynamic conditional correlation (DCC) method. A recent study proposed the copula DCC based on the vine structure. Due to the arbitrary variable selection, their method can produce unnecessary dependence in the multivariate structure, with extra economic and computational burdens. To overcome this limitation, we incorporate directional dependence by copula to track the causal relationship among multiple variables and then extend the copula bivariate DCC method to a directional time varying partial correlation in the multivariate structure. Our proposed method provides a reasonable and efficient conditional dependence structure, without the trial and error process. We offer an application of our method to the U.S. stock market as an illustrated example.
Journal: Applied Economics
Pages: 4418-4426
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1450485
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450485
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Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4418-4426
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoqing (Maggie) Fu
Author-X-Name-First: Xiaoqing (Maggie)
Author-X-Name-Last: Fu
Author-Name: Yongjia (Rebecca) Lin
Author-X-Name-First: Yongjia (Rebecca)
Author-X-Name-Last: Lin
Author-Name: Philip Molyneux
Author-X-Name-First: Philip
Author-X-Name-Last: Molyneux
Title: The quality and quantity of bank intermediation and economic growth: evidence from Asia Pacific
Abstract:
We investigate the impact of the quantity and quality of bank intermediation on economic growth across 14 Asia-Pacific economies over 2003–2015. Measures of bank shareholder value efficiency as well as profit and cost efficiency are used as indicators of intermediation quality. We also employ measures of liquidity creation (fat and nonfat) as a proxy for the quantity of bank intermediation. Our main finding is that the quality of bank intermediation (enhanced credit allocation) is a driver of economic growth in developed Asia-Pacific economies, whereas it is the quantity of bank intermediation (capital accumulation) that positively influences growth in developing nations. From a policy perspective, our findings suggest that policymakers in developed nations should concentrate their efforts on reforms that enhance bank efficiency. Second, reforms that stimulate capital accumulation should be encouraged in developing economies because this is the main channel that spurs economic growth.
Journal: Applied Economics
Pages: 4427-4446
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1450486
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1450486
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Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4427-4446
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: 4488-4488
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1452419
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1452419
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Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4488-4488
Template-Type: ReDIF-Article 1.0
Author-Name: Nola Agha
Author-X-Name-First: Nola
Author-X-Name-Last: Agha
Author-Name: Thomas Rhoads
Author-X-Name-First: Thomas
Author-X-Name-Last: Rhoads
Title: Reputation and the league standing effect: the case of a split season in minor league baseball
Abstract:
Split season league design resets standings at the midpoint of the season, thus allowing for two periods in which a team can potentially achieve success in a single season. This context allows us to test both the reputation of the first half winner and the league standing effect on demand. Examination of game-level data from the 2010 Southern League reveals fans are unaffected by measures of both team quality and league standing in the second half of the season. On the other hand, the first half winners saw an 11% increase in attendance as a percent of stadium capacity, suggesting that in the second half of the season winners matter more than winning.
Journal: Applied Economics
Pages: 4447-4455
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1456646
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1456646
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Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4447-4455
Template-Type: ReDIF-Article 1.0
Author-Name: Jan R. Kim
Author-X-Name-First: Jan R.
Author-X-Name-Last: Kim
Author-Name: Keunsuk Chung
Author-X-Name-First: Keunsuk
Author-X-Name-Last: Chung
Title: Putting the present value model into practice: a comparison of two alternative approaches
Abstract:
A key issue around putting the present-value model into practice is how to construct the unobserved future expectations of the fundamental variables related to an asset. One approach is to fit a vector autoregression (VAR) for the fundamental variables and deduce their future expectations from the estimated VAR. An alternative is to directly specify the future expectations as unobserved components (UC) and use the Kalman filter to extract their estimates from the realized data. This article examines whether the predictions of the present-value model are consistent across the two approaches. Constructing the VAR and UC versions of the standard present-value model, we examine how the two versions compare in identifying the main driver of the US and UK housing markets. For the UK, the two approaches consistently attribute most variations in the price–rent ratio to the expected future risk premium for housing investment. For the US, however, the two approaches deliver considerably different results: the VAR version marks the expected risk-free rate of return, whereas the UC version singles out the expected risk premium as the main driver of the ratio. We conclude that the choice between the VAR and UC approaches is not a trivial issue related to utilizing the present-value model.
Journal: Applied Economics
Pages: 4456-4469
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1456647
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1456647
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Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4456-4469
Template-Type: ReDIF-Article 1.0
Author-Name: Jane Du
Author-X-Name-First: Jane
Author-X-Name-Last: Du
Author-Name: Cheng King
Author-X-Name-First: Cheng
Author-X-Name-Last: King
Title: China’s government finance and food security nexus: a regime switching analysis
Abstract:
This paper is an empirical assessment of the government finance and food security nexus in China from 1978 to 2016. Using autoregressive distributed lag for linear and threshold cointegration, the results suggest that China’s government finance and food security have reinforced each other throughout the reform era when a structural break was allowed in the model. However, the strength of cointegration and Granger causality in the government-led food security link is stronger, hence supporting the state interventionist view that a strong state has played a dominant role in fulfilling national food security in China. China’s government finance and food security changes indicate food sector reform probabilities under fiscal constraint, as regime-switching indicators have delineated the Chinese government’s difficult fiscal periods and the main reforms in the food sector. In practice, this result implies that further policy reforms can be effective for China’s future food security.
Journal: Applied Economics
Pages: 4470-4487
Issue: 41
Volume: 50
Year: 2018
Month: 9
X-DOI: 10.1080/00036846.2018.1456648
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1456648
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Handle: RePEc:taf:applec:v:50:y:2018:i:41:p:4470-4487
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Paul Williams
Author-X-Name-First: Paul
Author-X-Name-Last: Williams
Title: Does customer satisfaction have directional predictability for U.S. discretionary spending?
Abstract:
Research indicates that past growth in customer satisfaction is an important factor in explaining the in-sample behaviour of growth in discretionary spending. Motivated by such evidence, we take an out-of-sample forecasting approach to examine whether customer satisfaction has directional predictability for two types of discretionary spending. These include spending on motor vehicles and spending on recreation services, which display frequent negative growth for the period 1995–2015. Our results indicate that customer satisfaction accurately predicts the direction of change in both types of spending under symmetric loss. To augment, we further show that the widely reported consumer sentiment has no directional predictability for either types of discretionary spending.
Journal: Applied Economics
Pages: 5504-5511
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1311002
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311002
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Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5504-5511
Template-Type: ReDIF-Article 1.0
Author-Name: Prasanna Surathkal
Author-X-Name-First: Prasanna
Author-X-Name-Last: Surathkal
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Title: Retail price responses to changes in wholesale prices in the US beef industry: differences among quality grades and primal cuts
Abstract:
This study examines the transmission of wholesale prices to retail prices for differentiated beef products. Specifically, we study vertical price movement for products differentiated by quality grades and primal cuts in the US beef industry. Our study considers two quality grades– United States Department of Agriculture (USDA) Choice and USDA Select, and three primal cuts– chuck, round and sirloin. Using threshold-based autoregressive and error correction models, and non-linear impulse response functions, we explore if characteristics of price adjustment differ by quality attributes of the products. Results show that there exists the ‘rocket and feather’ effect in the adjustment of retail prices of most beef grades and cuts in response to changes in wholesale prices, and such asymmetric adjustment effect is more pronounced for higher quality grade (Choice) than lower quality grade (Select). Evidence of similar price adjustment is found from the high-quality cut (sirloin). Our results underscore the differences in price adjustment by product quality in the US beef industry.
Journal: Applied Economics
Pages: 5512-5522
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1311003
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311003
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Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5512-5522
Template-Type: ReDIF-Article 1.0
Author-Name: Lauren Calimeris
Author-X-Name-First: Lauren
Author-X-Name-Last: Calimeris
Author-Name: Christina Peters
Author-X-Name-First: Christina
Author-X-Name-Last: Peters
Title: Food for thought: the birth-order effect and resource allocation in Indonesia
Abstract:
Despite the large literature linking birth order to socio-economic outcomes, research uncovering the mechanisms that drive these effects has been rare. We construct a unique measure of nutritional variety to examine whether differential resource allocation among siblings explains the birth-order effect on cognitive ability. We document birth-order differences among children and young adults, showing that second and third borns perform worse on cognitive assessments compared to their firstborn siblings. We find further evidence suggesting that second- and third-born children frequently eat a smaller variety of food than their first-born counterparts. However, this differentiation in food allocation does not appear to drive the differences in cognitive ability in our sample. To our knowledge, this article is the first both to confirm the presence of a birth-order effect on cognition in a developing country and to test empirically whether a difference in food allocation contributes to this effect.
Journal: Applied Economics
Pages: 5523-5534
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1311005
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1311005
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Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5523-5534
Template-Type: ReDIF-Article 1.0
Author-Name: Karoline Krätschell
Author-X-Name-First: Karoline
Author-X-Name-Last: Krätschell
Author-Name: Torsten Schmidt
Author-X-Name-First: Torsten
Author-X-Name-Last: Schmidt
Title: Long-run waves or short-run fluctuations – what establishes the correlation between oil and food prices?
Abstract:
The strong correlation between food prices and energy prices has gained much attention in the public debate. In this article, we focus on the so-called excess co-movement, which is the correlation between crude oil price and the prices of food commodities after controlling for economic activity. We use a frequency domain Granger causality test to analyse short-run and long-run relationships between crude oil prices and prices of food commodities. For important biofuel inputs like maize, soybeans, rapeseed and EU sugar, we find evidence for long-run Granger causality in particular for the period after 2007. This supports the hypothesis that the increasing biofuel production creates the link between the prices of crude oil and food commodities. However, we also find short-run Granger causality for various food commodities. This result is more in line with herd behaviour or speculation in commodity markets.
Journal: Applied Economics
Pages: 5535-5546
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313948
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313948
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Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5535-5546
Template-Type: ReDIF-Article 1.0
Author-Name: Roger C. Y. Chen
Author-X-Name-First: Roger C. Y.
Author-X-Name-Last: Chen
Author-Name: Chen-Hsun Lee
Author-X-Name-First: Chen-Hsun
Author-X-Name-Last: Lee
Title: Assessing whether corporate social responsibility influence corporate value
Abstract:
This study used the corporate social responsibility (CSR) index to gauge the corporate value and social responsibility performance of corporations in Taiwan. We investigated whether CSR influences corporate value and whether the extent of that influence varies with corporate value or time. The results indicate that the influence of CSR on corporate value does not change with time. CSR exerts a positive influence on company value, and this influence does not change over time. However, the extent of the influence significantly varies with corporate value. When the corporate value of a company is not high, investing in CSR would only increase costs and fail to effectively increase corporate value. In contrast, if the corporate value of the company is high, investments in CSR in this circumstance would instead promote the effective increase of corporate value.
Journal: Applied Economics
Pages: 5547-5557
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313949
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313949
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Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5547-5557
Template-Type: ReDIF-Article 1.0
Author-Name: Lixiong Yang
Author-X-Name-First: Lixiong
Author-X-Name-Last: Yang
Title: An assessment on the quality of China’s preliminary data of quarterly GDP announcements
Abstract:
This article examines the quality of China’s preliminary announcements of the quarterly GDP. We modify the tests for unbiasedness and efficiency by incorporating the Fourier approximation to capture the effect of the state of the economy, and employing the Kiefer, Vogelsang and Bunzel (KVB) approach, developed by KVB in 2000 to reconstruct the tests to improve the finite sample properties. The results show that: (1) there is no enough evidence to support that the preliminary and first revised data are unbiased and efficient; (2) there exist systematic errors related to the state of the economy, and hence information about the state of the economy was not incorporated into the GDP data. Furthermore, we find that there is a possibility that these systematic errors associated with the stages of the business cycle may offset each other, and there is also a possibility that there exist offsetting errors in the underlying components of GDP.
Journal: Applied Economics
Pages: 5558-5569
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313950
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313950
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Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5558-5569
Template-Type: ReDIF-Article 1.0
Author-Name: J. Harold
Author-X-Name-First: J.
Author-X-Name-Last: Harold
Author-Name: J. Cullinan
Author-X-Name-First: J.
Author-X-Name-Last: Cullinan
Author-Name: S. Lyons
Author-X-Name-First: S.
Author-X-Name-Last: Lyons
Title: The income elasticity of household energy demand: a quantile regression analysis
Abstract:
This article examines variation in the income elasticity of household energy demand across the energy expenditure distribution using expenditure data from the five most recent Household Budget Surveys (HBSs) in Ireland: the 1987, 1994/1995, 1999/2000, 2004/2005 and 2009/2010 HBS. The analysis uses a two-stage instrumental variable quantile regression approach and is based on each HBS cross section, as well as the overall pooled observations. The estimated elasticities are compared across low- and high-energy-consumption scenarios and to a benchmark elasticity estimated using two-stage least squares. The results provide evidence that there is significant variation in the income elasticities across the energy expenditure distribution and that care must be taken when using the constant mean elasticity for policy purposes. More specifically, any examination of the future impact of a change in income support policy measures on energy consumption should recognize the substantial context-dependent variation in the income elasticity.
Journal: Applied Economics
Pages: 5570-5578
Issue: 54
Volume: 49
Year: 2017
Month: 11
X-DOI: 10.1080/00036846.2017.1313952
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1313952
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Handle: RePEc:taf:applec:v:49:y:2017:i:54:p:5570-5578
Template-Type: ReDIF-Article 1.0
Author-Name: Aleida Cobas-Valdés
Author-X-Name-First: Aleida
Author-X-Name-Last: Cobas-Valdés
Author-Name: Javier Fernández-Macho
Author-X-Name-First: Javier
Author-X-Name-Last: Fernández-Macho
Author-Name: Ana Fernández-Sainz
Author-X-Name-First: Ana
Author-X-Name-Last: Fernández-Sainz
Title: Earnings distribution of Cuban immigrants in the USA: evidence from quantile regression with sample selection
Abstract:
This article analyses the conditional earnings distribution for Cuban immigrants in the USA considering Buchinsky sample selection in a quantile regression model. The test proposed by Huber and Melly to test the independence between error terms and regressors (conditional on the selection probability) is also considered. This is the first attempt in the migration literature to use quantile regression with sample selection. The data used come from the US American Community Survey. The results show that the hypothesis of conditional independence is not rejected, and increments in earnings associated with the usual socioeconomic characteristics in labour studies vary between the cohorts considered. The main conclusions are that a decline in returns from education may be a sign that a high level of education no longer provides a competitive advantage and that being a black person is associated with substantially lower earnings regardless of the individuals’ position in the earnings distribution. This may explain why, historically, comparatively fewer black Cubans have made the decision to emigrate to the USA because of a lack of economic incentives.
Journal: Applied Economics
Pages: 3685-3700
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1265079
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1265079
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Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3685-3700
Template-Type: ReDIF-Article 1.0
Author-Name: Doris Oberdabernig
Author-X-Name-First: Doris
Author-X-Name-Last: Oberdabernig
Author-Name: Alyssa Schneebaum
Author-X-Name-First: Alyssa
Author-X-Name-Last: Schneebaum
Title: Catching up? The educational mobility of migrants’ and natives’ children in Europe
Abstract:
Migrants into European countries are often less educated than European natives. We analyse whether migrants’ children are more or less likely than natives’ children to achieve upward educational mobility across generations, and study differences in the factors, which contribute to differences in mobility for the two groups. We find that migrants’ descendants are more often upwardly mobile (and less often downwardly mobile) than their native peers in the majority of countries studied, and show that the main factor contributing to these patterns is the education level of parents. Although a lower parental education means that their children are less likely to access the same amount of human, social and financial capital as children of more highly educated parents, migrants’ descendants over the last two generations were able to make significant progress in reducing education gaps with natives.
Journal: Applied Economics
Pages: 3701-3728
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267843
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267843
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Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3701-3728
Template-Type: ReDIF-Article 1.0
Author-Name: I. Mauleón
Author-X-Name-First: I.
Author-X-Name-Last: Mauleón
Author-Name: J. Sardà
Author-X-Name-First: J.
Author-X-Name-Last: Sardà
Title: Unemployment and the shadow economy
Abstract:
Current research links the shadow economy (SE) and the unemployment rate either indirectly or by means of a preliminary estimate. This article establishes and empirically implements a methodology for estimating the size of the SE as a direct function of the tax and unemployment rates. This link is found to be extremely relevant in countries with high unemployment rates (such as Greece and Spain) and less relevant in countries with moderate unemployment rates (such as Germany and Italy). Unemployment’s contribution to the SE is shown to be significant, especially in the years following the economic downturn of 2008. The calculation of the variance and distribution of these estimates is another significant contribution. The common criticism that SE estimates are unreliable is addressed by calculating the variance and the distribution of the estimates, and the large size of the SE in Greece and Spain is once again confirmed.
Journal: Applied Economics
Pages: 3729-3740
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267844
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267844
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Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3729-3740
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Malikane
Author-X-Name-First: Christopher
Author-X-Name-Last: Malikane
Title: The labour share and the dynamics of output
Abstract:
We derive a new Keynesian IS curve that is augmented to capture the direct effects of the labour share on output. Our derivation shows that the direct effect of the labour share on output is ambiguous. Furthermore, theory suggests that the expected labour share negatively affects output. Empirically, we find that the labour share plays a significant role in driving output dynamics. However contrary to theoretical expectation, the expected labour share positively affects output in some cases, a finding we call the ‘labour share puzzle’. We also find that over time, there seems to be a general shift in aggregate demand dynamics towards being profit-led, i.e. rising labour share decreases output. We conclude that policymakers should not ignore the labour share in their decisions.
Journal: Applied Economics
Pages: 3741-3750
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267845
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267845
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Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3741-3750
Template-Type: ReDIF-Article 1.0
Author-Name: Liam J. A. Lenten
Author-X-Name-First: Liam J. A.
Author-X-Name-Last: Lenten
Title: Racial discrimination in umpire voting: an (arguably) unexpected result
Abstract:
Using data from an official most valuable player award in professional sport, we test for the presence of discrimination by match officials (umpires), who are responsible for ranking the top three players within each match. These umpires are found to award significantly more votes to (and have a higher probability of voting for) players identified as (Australian) Indigenous, after controlling for within-match production. The result offers further evidence on racial discrimination, and runs counter to numerous analogous studies both in sport, as well as in labour and other socio-economic outcomes in general.
Journal: Applied Economics
Pages: 3751-3757
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267848
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267848
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Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3751-3757
Template-Type: ReDIF-Article 1.0
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Michel Dombrecht
Author-X-Name-First: Michel
Author-X-Name-Last: Dombrecht
Author-Name: Karim Barkat
Author-X-Name-First: Karim
Author-X-Name-Last: Barkat
Title: Asymmetric responses of money demand to oil price shocks in Saudi Arabia: a non-linear ARDL approach
Abstract:
Saudi Arabia is an open oil-based economy with fixed exchange rates; therefore, it has limited monetary policy autonomy. Using non-linear autoregressive distributed lag approach, this article investigates the asymmetric effects of oil price shocks on the demand of money in Saudi Arabia over the period 1990:Q1–2014:Q4. The empirical results show evidence of positive long run but asymmetric effects of oil price shocks on the money demand. In particular, we find that the positive oil price shocks are more important than negative shocks. Therefore, two policy responses can be considered: either sustaining the fixed exchange rate regime and following an economic diversification policy or switching towards a flexible exchange rate regime to achieve price stability. In that case, the existence of a stable money demand function in Saudi Arabia is a necessary precondition for adopting a monetary policy strategy targeted to price stability using instruments like money targeting.
Journal: Applied Economics
Pages: 3758-3769
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267849
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267849
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Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3758-3769
Template-Type: ReDIF-Article 1.0
Author-Name: Iñigo Fernández
Author-X-Name-First: Iñigo
Author-X-Name-Last: Fernández
Author-Name: Víctor M. González
Author-X-Name-First: Víctor M.
Author-X-Name-Last: González
Title: Corporate valuation and social capital: a cross-country analysis
Abstract:
This article analyses the influence of social capital on corporate valuation for a sample of 55 countries over the period 1995–2012. The results suggest that social capital is an important determinant of corporate valuation. Interpersonal trust and civic cooperation enhance corporate valuation, even though other institutional and legal characteristics are considered. Furthermore, our results reveal that corporate valuation increases with the GDP annual growth rate, legal enforcement and the protection of shareholders’ rights, but that it is negatively affected by corruption and protection of creditors’ rights. We also obtain some evidence suggesting that civic cooperation has a greater influence over corporate valuation in poorer countries.
Journal: Applied Economics
Pages: 3770-3781
Issue: 37
Volume: 49
Year: 2017
Month: 8
X-DOI: 10.1080/00036846.2016.1267850
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1267850
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Handle: RePEc:taf:applec:v:49:y:2017:i:37:p:3770-3781
Template-Type: ReDIF-Article 1.0
Author-Name: Rogiene Batista dos Santos
Author-X-Name-First: Rogiene Batista
Author-X-Name-Last: dos Santos
Author-Name: Fabiano Guasti Lima
Author-X-Name-First: Fabiano Guasti
Author-X-Name-Last: Lima
Author-Name: Rafael Confetti Gatsios
Author-X-Name-First: Rafael Confetti
Author-X-Name-Last: Gatsios
Author-Name: Rodrigo Borges de Almeida
Author-X-Name-First: Rodrigo Borges
Author-X-Name-Last: de Almeida
Title: Risk management and value creation: new evidence for Brazilian non-financial companies
Abstract:
The practice of financial risk management with derivatives has received attention both from the academia and the market. In Brazil, there is a growing use of these instruments by companies, in line with the growth of such market in the global economy. This article aims to investigate the relationship between the financial risk management and the value creation to the shareholder for non-financial Brazilian companies. The sample was made up of 1794 firm-year observations from 2006 to 2014. Results obtained via panel data, including the GMM, point out that companies which used derivatives did not add value during the period analysed. An explanation for this result is that most of the companies use derivatives in order to manage the cash flow and not to add value.
Journal: Applied Economics
Pages: 5815-5827
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343451
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343451
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Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5815-5827
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: James W. Saunoris
Author-X-Name-First: James W.
Author-X-Name-Last: Saunoris
Title: Unemployment and international shadow economy: gender differences
Abstract:
Adding to the body of research on cross-country determinants of the informal economy, this article studies how unemployment differences across gender drive the propensities to work in the informal sector. Results, accounting for possible simultaneity between unemployment and the shadow economy, show that unemployed males, rather than unemployed females, were more likely to operate underground. These findings about greater male propensities are generally robust to alternative considerations.
Journal: Applied Economics
Pages: 5828-5840
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1343452
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1343452
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Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5828-5840
Template-Type: ReDIF-Article 1.0
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Su-Ling Tsai
Author-X-Name-First: Su-Ling
Author-X-Name-Last: Tsai
Author-Name: Kai-yin Allison Haga
Author-X-Name-First: Kai-yin Allison
Author-X-Name-Last: Haga
Title: Uncovering the interrelationship between the U.S. stock and housing markets: a bootstrap rolling window Granger causality approach
Abstract:
The purpose of this study is to investigate the time-varying interrelationship between the housing market and the stock market in the U.S. during the period of 1890–2013, by employing a rolling window subsample with a bootstrap Granger causality test. The rolling window allows for structural changes in the economy over time. Whereas previous studies have not identified a causal relationship between the U.S. housing price index and the SP500 stock price index, this new analysis is the first to identify certain periods wherein either the wealth effect or the investment effect can be observed.
Journal: Applied Economics
Pages: 5841-5848
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1346365
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1346365
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Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5841-5848
Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyuk Kim
Author-X-Name-First: Dong-Hyuk
Author-X-Name-Last: Kim
Author-Name: Yong Song
Author-X-Name-First: Yong
Author-X-Name-Last: Song
Author-Name: Huaxin Xu
Author-X-Name-First: Huaxin
Author-X-Name-Last: Xu
Title: A fast estimation procedure for discrete choice random coefficients demand model
Abstract:
We document speed-up gains of graphical processing unit (GPU) computing over central processing unit (CPU) for the estimation of discrete choice random coefficient demand model. When we use a moderate-sized GPU, the computation is six to twenty times faster, where the smallest speed-up factor, six, is obtained from a comparison with the parallel computing over sixteen CPU cores.
Journal: Applied Economics
Pages: 5849-5855
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1349289
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1349289
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Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5849-5855
Template-Type: ReDIF-Article 1.0
Author-Name: Hanae Tamechika
Author-X-Name-First: Hanae
Author-X-Name-Last: Tamechika
Author-Name: Shin’ya Okuda
Author-X-Name-First: Shin’ya
Author-X-Name-Last: Okuda
Title: Stock price responses to the eco-points programme for electrical household appliances: evidence from Japan
Abstract:
This article examines the Japanese government’s ‘Project for Green Consumer Electronics to Promote Business through the Use of Eco-points’ and its economic impact on consumer electronics firms’ stock prices. There has been little research on the economic effect of this project. In order to achieve our aim, we employ event study methodology. Our results show that stock prices responded positively to programme adoption, thereby indicating that the programme had positive effects on the related firms’ performance. The results also show that the programme’s economic effects gradually decreased over each subsequent programme extension. This probably occurred because the programme targeted durable goods, which consumers do not replace frequently.
Journal: Applied Economics
Pages: 5856-5864
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1352076
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352076
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Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5856-5864
Template-Type: ReDIF-Article 1.0
Author-Name: Emanuel Bagna
Author-X-Name-First: Emanuel
Author-X-Name-Last: Bagna
Author-Name: Grazia Dicuonzo
Author-X-Name-First: Grazia
Author-X-Name-Last: Dicuonzo
Author-Name: Andrea Perrone
Author-X-Name-First: Andrea
Author-X-Name-Last: Perrone
Author-Name: Vittorio Dell’Atti
Author-X-Name-First: Vittorio
Author-X-Name-Last: Dell’Atti
Title: The value relevance of brand valuation
Abstract:
The reports published by independent parties are often used to provide an estimation of brands due to the lack of literature and best practices regarding which brand valuation method is more value relevant and reliable than another. Over the last several years, brand valuation debate is growing in importance because of the need to provide a value of intangibles for different purposes. The purpose of this study is two-fold. First, we aim to understand whether brand valuation related to listed companies provided by three independent agencies is value relevant and therefore whether these brand valuations are taken into consideration by investors in their decision-making process. Second, we assess which of the three methods reflects the stock markets in a better way. We analyse a sample of 71 brands valuated by Interbrand, Brand Finance and BrandZ from 2013 to 2015. The results show that brand valuation provided by the independent agencies is value relevant; in addition, they reveal that the Brand Finance method, based on the royalty relief approach, is more value relevant than the others. This study contributes to the extant literature on value relevance by providing evidence on the impact of stock prices of brand agencies’ valuation.
Journal: Applied Economics
Pages: 5865-5876
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1352078
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352078
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Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5865-5876
Template-Type: ReDIF-Article 1.0
Author-Name: Kristina Brščić
Author-X-Name-First: Kristina
Author-X-Name-Last: Brščić
Author-Name: Tina Šugar
Author-X-Name-First: Tina
Author-X-Name-Last: Šugar
Author-Name: Danijela Poljuha
Author-X-Name-First: Danijela
Author-X-Name-Last: Poljuha
Title: An empirical examination of consumer preferences for honey in Croatia
Abstract:
In past years, beekeeping as an agricultural sector has become more organized, but there is still a gap in knowledge in considering consumer preferences for honey. The aim of the research was to determine consumer preferences for honey and their attitudes towards the Protected Designation of Origin (PDO) label. Also, in the article is presented the current situation regarding the honey market and legislation of the PDO label at the EU and national levels. The result of the empirical research carried out on a sample of 1008 respondents showed that they mostly prefer a mild flavour and brighter colour of honey. According to the type, most of the respondents prefer acacia rather than floral and meadow honeys or other types of honey. The most common method of honey purchase is directly from the producers (75%). The results of the Principle Component Analysis (PCA) showed that the most important attributes are the intrinsic attributes of the honey and that the most common reasons for purchasing and consuming honey are for its health and medical benefits. The obtained results fill the gap in knowledge regarding consumer preferences for honey in the Croatian market and can be useful for the creation of new honey-marketing strategies for local beekeepers.
Journal: Applied Economics
Pages: 5877-5889
Issue: 58
Volume: 49
Year: 2017
Month: 12
X-DOI: 10.1080/00036846.2017.1352079
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1352079
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Handle: RePEc:taf:applec:v:49:y:2017:i:58:p:5877-5889
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Philip Makofske
Author-X-Name-First: Matthew Philip
Author-X-Name-Last: Makofske
Title: Are you hiring Johnny Football or Johnny Doe? Uncertain labour quality and the measurement of monopsony in college football
Abstract:
I assess monopsony in the college football labour market as it relates to both typical and elite performers, while also accounting for the uncertain performance quality of prospective players who are in this labour market. Existing studies suggest that the marginal revenue product (MRP) of elite collegiate players later drafted into the National Football League (NFL), significantly exceeds their compensation. These comparisons overstate monopsony rents because schools don’t know ex ante which prospects will become these elite performers. Using financial data spanning 2004–2011 from 114 major schools, I estimate the MRP of players sorted into three ex post quality tiers, and find that while eventual NFL draftees generate revenue that significantly exceeds their compensation, a majority of scholarship players do not. Then, using Rivals.com talent ratings of 6,604 prospective players recruited from 2002–2008, I estimate the probability that prospects will reach each ex post quality tier given their ex ante ratings. MRP estimates are adjusted by these conditional probability estimates to reflect the expected MRP of prospects, which allows more appropriate assessment of monopsony rents. I find that schools possess substantially less monopsony power than unadjusted MRP estimates suggest.
Journal: Applied Economics
Pages: 2415-2430
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397854
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397854
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Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2415-2430
Template-Type: ReDIF-Article 1.0
Author-Name: D. A. Peel
Author-X-Name-First: D. A.
Author-X-Name-Last: Peel
Title: An explanation of each-way wagers in three models of risky choice
Abstract:
Punters may engage in betting on both a selection in an event to finish first or in one of the number of places, e.g. second, third or fourth. When the amounts staked with bookmakers at fixed odds on the win and place are equal, it is called an each-way bet. Each-way bets are apparently popular with punters but inconsistent with prominent models of wagering which assume gamblers are everywhere risk-seeking. In this note, we derive the conditions for win and place bets to be optimal in these three models of risky choice. The mathematical conditions for the each-way wager to be optimal, as opposed to a win and place wager with different stakes, are complicated and appear likely to occur rarely in practice. However, bettors obviously see the attraction in giving themselves two ways to bet on the one horse or two ways to win and betting each way. We suggest part of the ‘each-way’ betting attraction is that they are quick and easy to compute – a heuristic – to solve an otherwise complex betting strategy.
Journal: Applied Economics
Pages: 2431-2438
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1397855
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1397855
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Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2431-2438
Template-Type: ReDIF-Article 1.0
Author-Name: Don U.A. Galagedera
Author-X-Name-First: Don U.A.
Author-X-Name-Last: Galagedera
Title: Modelling superannuation fund management function as a two-stage process for overall and stage-level performance appraisal
Abstract:
We assess superannuation fund performance in a multi-dimensional framework by conceptualizing its management function as a serially linked two sub-process; operational management (OM) and portfolio management (PM). The procedure that we adopt is data envelopment analysis (DEA). We express overall efficiency as a weighted average of the two sub-process efficiencies and assess overall efficiency conditional on their relative importance. We demonstrate application of our model using a sample of Australian superannuation funds. By appraising performance in two sample periods; crisis (2008) and relatively non-crisis (2014), we show that some findings of previous studies may be explained further through the proposed multi-stage framework. The best overall performer in 2008 is public sector funds and in 2014 it is corporate funds. Decomposition of overall efficiency reveals that public sector funds, on average, outperform all other fund categories in OM. However, no specific fund category dominates PM performance in both assessment periods. The driving force behind the observed inverse association between superannuation fund size and performance appears to be PM performance. Number of investment options offered is not associated with overall, OM and PM performance. Here, we demonstrate that performance appraisal from different aspects of management provide insightful information to superannuation fund managers.
Journal: Applied Economics
Pages: 2439-2458
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400649
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400649
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Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2439-2458
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Meneu Gaya
Author-X-Name-First: Robert
Author-X-Name-Last: Meneu Gaya
Author-Name: José-Enrique Devesa Carpio
Author-X-Name-First: José-Enrique
Author-X-Name-Last: Devesa Carpio
Author-Name: Inmaculada Domínguez Fabián
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Domínguez Fabián
Author-Name: Borja Encinas Goenechea
Author-X-Name-First: Borja
Author-X-Name-Last: Encinas Goenechea
Author-Name: Juan-José Alonso Fernández
Author-X-Name-First: Juan-José
Author-X-Name-Last: Alonso Fernández
Title: The effects of recent Spanish pension reforms on sustainability and pension adequacy
Abstract:
The Spanish pension system has been recently reformed as a response to the demographic challenge and with the objective of ensuring the sustainability of the pension system in the long-term. The overall reforms include changes in the majority of the system parameters, a new indexation rule and a sustainability factor that links life expectancy and the first pension amount. The aim of this work is to analyse how these reforms affect two important features of a pension system: fiscal sustainability and adequacy. For this purpose, the real internal rate of return (IRR) of the lifetime contributions and benefits and the prospective gross theoretical replacement rate (TRR), both before and after the reforms, have been computed. The calculations are case-study based, for a few hypothetical workers who are sufficiently representative of the earnings and retirement patterns in Spain. The results show that the real IRR is 0.7 p.p. lower and the prospective gross TRR is 18 p.p. lower after the reform process for the base case of a man with an uninterrupted career of 40 years with average earnings and a retirement age of 65. In addition, pension reform process in Spain has different effects among the individuals depending on the gender, level of earnings, retirement age and career length.
Journal: Applied Economics
Pages: 2459-2468
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400650
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400650
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Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2459-2468
Template-Type: ReDIF-Article 1.0
Author-Name: Kuniyoshi Saito
Author-X-Name-First: Kuniyoshi
Author-X-Name-Last: Saito
Author-Name: Daisuke Tsuruta
Author-X-Name-First: Daisuke
Author-X-Name-Last: Tsuruta
Title: Information asymmetry in small and medium enterprise credit guarantee schemes: evidence from Japan
Abstract:
In this article, we investigate whether there is adverse selection and/or moral hazard in credit guarantee schemes for small and medium enterprises (SMEs) in Japan. As credit guarantee corporations cannot distinguish low risk from risky borrowers, credit guarantee schemes typically attract a larger proportion of risky borrowers, which results in inefficient resource allocation. Using bank-level data, we analyse whether the default rate is positively associated with the ratio of guaranteed loans to total loans, and find that the data are consistent with an adverse selection and/or moral hazard hypothesis. Further analysis shows that the relationship is stronger for 100% coverage than for 80% coverage, indicating that the ‘20% self-payment’ requirement somewhat mitigates the problem, but not enough to eliminate it altogether.
Journal: Applied Economics
Pages: 2469-2485
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400651
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400651
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Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2469-2485
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Title: Relationship between oil price and exchange rate by FDA and copula
Abstract:
This article investigates the relationship between daily crude oil prices and exchange rates. Functional data analysis is used to show the clustering pattern of exchange rates and oil prices over the time period through high dimensional visualizations. We select exchange rates for important currencies related to crude oil prices by using the objective Bayesian variable selection method. The selected sample data exhibits non-normal distribution with fat tails and skewness. Under the non-normality of the return series, we use copula functions that do not require to assume the bivariate normality to consider marginal distribution. In particular, our study applies the popular and powerful statistical methods such as Gaussian copula partial correlations and Gaussian copula marginal regression. We find evidence of significant dependence for all considered pairs, except for the Mexican peso-Brent. Our empirical results also show that the rise in the West Texas Intermediate (WTI) oil price returns is associated with a depreciation of the US dollar.
Journal: Applied Economics
Pages: 2486-2499
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400652
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400652
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Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2486-2499
Template-Type: ReDIF-Article 1.0
Author-Name: Sediq Sameem
Author-X-Name-First: Sediq
Author-X-Name-Last: Sameem
Author-Name: Kevin Sylwester
Author-X-Name-First: Kevin
Author-X-Name-Last: Sylwester
Title: Crime during the business cycle: urban–rural differences
Abstract:
Despite the abundant literature on how crime evolves over the business cycle, no consensus has arisen whether crime increases or decreases during recessions. The literature provides both positive and negative associations between the crime rate and the unemployment rate, a commonly used proxy for the business cycle. This study revisits this issue and uses county-level data from 1990 to 2013. It allows for differences as to how unemployment relates to both property crime and violent crime depending on the size of the counties. We find evidence of a positive association between unemployment and property crime that strengthens with county size. The results show the same pattern for violent crime but are statistically weaker. Our findings suggest that the positive association between property crime and unemployment that others have found is largely driven by more populous areas.
Journal: Applied Economics
Pages: 2500-2508
Issue: 22
Volume: 50
Year: 2018
Month: 5
X-DOI: 10.1080/00036846.2017.1400653
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1400653
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Handle: RePEc:taf:applec:v:50:y:2018:i:22:p:2500-2508
Template-Type: ReDIF-Article 1.0
Author-Name: Omar Farooq
Author-X-Name-First: Omar
Author-X-Name-Last: Farooq
Title: What determines the value of recommendation change? A preliminary analysis
Abstract:
This article determines the condition under which recommendation changes relative to consensus recommendation and recommendation changes relative to analyst’s previous recommendation are valuable. We show that recommendation upgrades (downgrades) relative to consensus recommendation are followed by significantly positive (negative) short-term returns whenever consensus recommendation represents convergence of analysts’ opinions. We also show that as the standard deviation associated with consensus recommendation increase, the value of recommendation changes reduce significantly. This article also shows that recommendation upgrades (downgrades) relative to analyst’s previous recommendation are followed by significantly positive (negative) short-term returns whenever interval between two consecutive recommendations is relatively short. We also show that, as the interval between two consecutive recommendations increase, the value of recommendation changes reduce significantly. Our results are robust across various subsamples based on size and region.
Journal: Applied Economics
Pages: 1557-1570
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221043
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221043
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Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1557-1570
Template-Type: ReDIF-Article 1.0
Author-Name: Anne Briand
Author-X-Name-First: Anne
Author-X-Name-Last: Briand
Author-Name: Amandine Loyal Laré-Dondarini
Author-X-Name-First: Amandine Loyal
Author-X-Name-Last: Laré-Dondarini
Title: Impact of improved water services in informal neighbourhoods in Ouagadougou
Abstract:
This article examines the impact of a project to improve water services in underserved neighbourhoods in Ouagadougou on household water access conditions. We used the propensity-score matching method to analyse data from a survey carried out in 2011, and found that the improvement project cut the cost of water neighbourhood-wide by 94 CFA francs per cubic meter, reduced the portion of this expense by 1% of the average household budget, and cut the daily time to collect water by 10–13 min. The results that we obtained through the propensity-score matching method differ from those obtained by simply comparing the averages of the neighbourhoods participating in the project to those that did not participate. This indicates that the propensity-score matching method of impact evaluation is valuable in supplying decision makers with nonbiased estimates of the link between ease of access to water and poverty reduction.
Journal: Applied Economics
Pages: 1571-1583
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221044
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221044
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Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1571-1583
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulnasser Hatemi-J
Author-X-Name-First: Abdulnasser
Author-X-Name-Last: Hatemi-J
Author-Name: Abdulrahman Al Shayeb
Author-X-Name-First: Abdulrahman
Author-X-Name-Last: Al Shayeb
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: The effect of oil prices on stock prices: fresh evidence from asymmetric causality tests
Abstract:
This article investigates the causal impact of oil prices on stock prices in each G7 market as well as in the world market. An asymmetric causality test developed by Hatemi-J is used for this purpose. Since the underlying data appears to be non-normal with time-varying volatility, we use bootstrap simulations with leverage adjustments in order to produce more reliable critical values than the asymptotic ones. Based on symmetric causality tests, we find no causal effect of oil prices on the stock prices of the world market or any of the G7 countries. However, when we apply an asymmetric causality test, we find that increasing oil prices cause stock prices to rise in the world, the U.S. and Japan while decreasing oil prices cause stock prices to fall in Germany. This may imply that the world, the U.S. and Japanese stock markets consider increases in oil prices as an indicator of good news as this may mean that there is an increase in oil demand due to an expected growth in the economy while the German stock market treats decreasing oil prices as a signal of an expected contraction in the economy.
Journal: Applied Economics
Pages: 1584-1592
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221045
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221045
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Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1584-1592
Template-Type: ReDIF-Article 1.0
Author-Name: Louinord Voltaire
Author-X-Name-First: Louinord
Author-X-Name-Last: Voltaire
Author-Name: Loic Lévi
Author-X-Name-First: Loic
Author-X-Name-Last: Lévi
Author-Name: Frédérique Alban
Author-X-Name-First: Frédérique
Author-X-Name-Last: Alban
Author-Name: Jean Boncoeur
Author-X-Name-First: Jean
Author-X-Name-Last: Boncoeur
Title: Valuing cultural world heritage sites: an application of the travel cost method to Mont-Saint-Michel
Abstract:
This article, using the zonal version of the travel cost method (ZTCM), provides the first economic valuation of recreational trips to Mont-Saint-Michel (MSM). The MSM was designated as United Nations Educational, Scientific and Cultural Organization World Heritage Site in 1979, and is the most visited coastal site in France. The potential effects on consumer surplus (CS) estimates of some aspects of the ZTCM are considered, namely the treatment of the multiple purpose/destination (MP/D) trips, the inclusion of the opportunity cost of time (OCT) in the recreation demand model and the heterogeneity in the preferences. The heterogeneity in the preferences is examined through a random parameters Poisson model (RPPM). The RPPM generalizes the standard Poisson model (SPM) by allowing coefficients of explanatory variables to vary randomly across geographical units rather than being fixed. Our results show that (1) substantial CS values are associated with the MSM; (2) excluding/ignoring MP/D trips result in biased CS estimates; (3) omitting OCT does not substantially bias CS estimates; (4) the RPPM provides richer information about the impact of explanatory variables on the demand for trips than the SPM, but (5) leads to statistically similar CS estimates than the SPM.
Journal: Applied Economics
Pages: 1593-1605
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221046
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221046
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Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1593-1605
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Cerqueira
Author-X-Name-First: Antonio
Author-X-Name-Last: Cerqueira
Author-Name: Claudia Pereira
Author-X-Name-First: Claudia
Author-X-Name-Last: Pereira
Title: Accruals quality, managers’ incentives and stock market reaction: evidence from Europe
Abstract:
We investigate if accruals quality is a valuable indicator of earnings quality for stock market investors. Our particular focus is on the incremental informative value of taking into account managers’ incentives for using accruals. We propose a market-based approach for assessing the usefulness of this indicator to improve investors’ decisions. Specifically, we examine the association between accruals quality and information asymmetry among stock market participants. Our empirical study uses data on European firms and our results are consistent with a positive association between poor earnings quality and high information asymmetry. However, given some previous studies suggesting that accruals-based measures may be noisy indicators of earnings quality, we develop a method to increase the informational content of the accruals quality measure. Based on our results, we find that combining accruals quality with the dispersion in analysts’ forecasts provides a better indicator of earnings quality rather than only accruals quality.
Journal: Applied Economics
Pages: 1606-1626
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1221047
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1221047
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Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1606-1626
Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth A. Yeager
Author-X-Name-First: Elizabeth A.
Author-X-Name-Last: Yeager
Author-Name: Michael R. Langemeier
Author-X-Name-First: Michael R.
Author-X-Name-Last: Langemeier
Title: Economic efficiency adjusted for risk preferences
Abstract:
This study investigates the impact of risk preferences on cost and revenue efficiency for a sample of farms. Risk preference scores were used to measure risk aversion. Cost and revenue efficiency were estimated using traditional input and output measures, and then re-estimated including each farm’s risk preference score. Comparisons were made between farms with and without a change in efficiency when each farm’s risk preference was included in the analysis. As expected, risk preference plays an important role in explaining farm inefficiency. Failure to account for risk preferences overstates inefficiency, particularly for slightly risk averse and risk neutral farms.
Journal: Applied Economics
Pages: 1627-1636
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223819
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223819
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Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1627-1636
Template-Type: ReDIF-Article 1.0
Author-Name: Isidro Frías-Pinedo
Author-X-Name-First: Isidro
Author-X-Name-Last: Frías-Pinedo
Author-Name: Rosario Díaz-Vázquez
Author-X-Name-First: Rosario
Author-X-Name-Last: Díaz-Vázquez
Author-Name: Ana Iglesias-Casal
Author-X-Name-First: Ana
Author-X-Name-Last: Iglesias-Casal
Title: Oil prices and economic downturns: the case of Spain
Abstract:
We address the macroeconomic effects of an oil price shock in Spain. We apply a vector autoregression model (VAR) analysis to quarterly data for the Spanish economy since 1986, to elucidate the effects of variations in the oil price on the economy, considering the three main causes of disruptions in the oil markets: oil supply shocks, oil demand shocks and oil-specific (precautionary) demand shocks. We conclude that the effects in Spain strongly depend on the type of shock: the consumer price index (CPI) has mainly been influenced by oil demand shocks; output has only reacted to oil supply shocks; and monetary policy has mainly reacted after precautionary shocks. Second-round effects caused by the behaviour of nominal wages have not been found. Additionally, we discuss two facts: the ability of firms to increase markups in a context of rising demand and the procyclical role of monetary policy when faced with oil demand shocks.
Journal: Applied Economics
Pages: 1637-1654
Issue: 16
Volume: 49
Year: 2017
Month: 4
X-DOI: 10.1080/00036846.2016.1223822
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1223822
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Handle: RePEc:taf:applec:v:49:y:2017:i:16:p:1637-1654
Template-Type: ReDIF-Article 1.0
Author-Name: Saten Kumar
Author-X-Name-First: Saten
Author-X-Name-Last: Kumar
Author-Name: Pengfei Jia
Author-X-Name-First: Pengfei
Author-X-Name-Last: Jia
Title: Financial crisis and persistence: evidence from sticky expectations consumption growth model
Abstract:
We estimate the degree of stickiness in aggregate consumption growth for the U.S. considering the effects of the Great Recession. The behavior of stickiness estimate in the crisis is somewhat as the U-shaped pattern. Our findings imply that during the crisis consumers’ attentiveness to aggregate information has slightly increased, thereby reducing the persistence of aggregate consumption growth. However, the reduction in persistence is transitory. Since 1980, the U.S. faced five recessions and in most of them the degree of stickiness declined, albeit temporarily.
Journal: Applied Economics
Pages: 1799-1807
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529394
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529394
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Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1799-1807
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Fernández-Herraiz
Author-X-Name-First: Carlos
Author-X-Name-Last: Fernández-Herraiz
Author-Name: Antonio Javier Prado-Domínguez
Author-X-Name-First: Antonio Javier
Author-X-Name-Last: Prado-Domínguez
Author-Name: Carlos Pateiro-Rodríguez
Author-X-Name-First: Carlos
Author-X-Name-Last: Pateiro-Rodríguez
Author-Name: Jesús M. García-Iglesias
Author-X-Name-First: Jesús M.
Author-X-Name-Last: García-Iglesias
Title: The role of the enhanced carry to risk on currency policy: the Mexican Peso
Abstract:
One of the most common measures of carry trade attractiveness is the carry-to-risk ratio. On analysing the speculative activity, this ratio presents two issues: First, emerging market currencies could merit a legitimate risk premium in a carry trade strategy due to the sovereign risks involved. In order to correct the measure, we include the credit risk in the measure using credit default swaps. Second, we gather more information about potential volatility asymmetries including a directional speculation indicator known as the risk reversal. We prove that the enhanced measure for the Mexican peso (MXN) is well represented by an ARIMA model with appropriate features since 2009. Due to the output of the analysis, we deduce that the Bank of Mexico might use this measure or a similar indicator, not only to understand the attractiveness of the carry trade strategy but to curb destabilizing carry trade activities. The case is compelling for the Mexican peso due to its dual role as emerging market currency and full convertible currency. We conclude that this institution may effectively manage the enhanced carry-to-risk measures in order to achieve financial stability and proper exchange credibility, and recognize its potential utility for other central banks.
Journal: Applied Economics
Pages: 1808-1816
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529395
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529395
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Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1808-1816
Template-Type: ReDIF-Article 1.0
Author-Name: Sulaiman A. Al-Jassar
Author-X-Name-First: Sulaiman A.
Author-X-Name-Last: Al-Jassar
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: The effect of quantitative easing on stock prices: a structural time series approach
Abstract:
A structural time series model is estimated and tested to examine the effect of quantitative easing (QE) on US stock prices. The model is estimated by maximum likelihood in a Time-varying parametric (TVP) framework, using the S&P 500 index as the dependent variable and the Fed’s balance as an explanatory variable in addition to the unobserved components accounting for the behaviour of variables that do not appear explicitly in the equation. The results show that QE had a sizeable, but not exclusive, effect on stock prices and that stock prices were also affected by other missing variables and cyclical movements. Several explanations are presented for the rise of the US stock market in the post-QE period, particularly since the election of Donald Trump.
Journal: Applied Economics
Pages: 1817-1827
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529396
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529396
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Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1817-1827
Template-Type: ReDIF-Article 1.0
Author-Name: Mingming Jiang
Author-X-Name-First: Mingming
Author-X-Name-Last: Jiang
Author-Name: John Shideler
Author-X-Name-First: John
Author-X-Name-Last: Shideler
Author-Name: Yun Wang
Author-X-Name-First: Yun
Author-X-Name-Last: Wang
Title: Factor substitution and labor market friction in the United States: 1948–2010
Abstract:
We re-estimate the capital-labor elasticity of substitution and the biased factor-augmenting technological progress using a system approach for the aggregate U.S. economy from 1948 to 2010. Due to (i) the significant impacts of labor market dynamics on economic growth and (ii) the fundamental tension between the short-run data that are available and the long-run parameter that is required in the estimation process, we incorporate labor market friction into a supply-side system to re-estimate these important growth parameters and to explore their sensitivity to the incorporation of labor market friction. Our estimation obtains a significantly smaller-than-unity elasticity of substitution. This result is consistent with labor input measured along the extensive and intensive margin, and in both competitive and imperfect labor markets. Technological progress tends to be purely labor-augmenting, with the average growth rate around 2% per year. These findings are robust to alternatively constructed data sets and different estimation strategies.
Journal: Applied Economics
Pages: 1828-1840
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529397
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529397
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Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1828-1840
Template-Type: ReDIF-Article 1.0
Author-Name: Temesgen Kifle
Author-X-Name-First: Temesgen
Author-X-Name-Last: Kifle
Author-Name: Parvinder Kler
Author-X-Name-First: Parvinder
Author-X-Name-Last: Kler
Author-Name: Christopher M. Fleming
Author-X-Name-First: Christopher M.
Author-X-Name-Last: Fleming
Title: The assimilation of Australian immigrants: does occupation matter?
Abstract:
This paper utilises the occupational attainment approach to investigate immigrant labour market assimilation, complementing other assimilation approaches such as employability, earnings, skills-match and job satisfaction. Our results show that all immigrant groups suffer from initial occupational attainment disadvantage. Worryingly, no ‘catch-up’ over time is evident – even when disaggregated to reflect different cultures and backgrounds. Nor is there much evidence that the occupational status of younger arrivals matches those of Australian born residents, despite being immersed in local mores and institutions while undertaking schooling in Australia. Newer cohorts of immigrants (those who arrived between 2000 and 2014) are also more prone to suffering an occupational penalty. We recommend policymakers subsidise bridging courses to aid recognition of overseas-obtained qualifications and encourage immigrants to obtain local qualifications that can complement their overseas-obtained work experience. This will increase their ‘Australian-ready’ skill-set and occupational attainment in their new host country.
Journal: Applied Economics
Pages: 1841-1854
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529398
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529398
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Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1841-1854
Template-Type: ReDIF-Article 1.0
Author-Name: Khalid M. Kisswani
Author-X-Name-First: Khalid M.
Author-X-Name-Last: Kisswani
Author-Name: Arezou Harraf
Author-X-Name-First: Arezou
Author-X-Name-Last: Harraf
Author-Name: Amjad M. Kisswani
Author-X-Name-First: Amjad M.
Author-X-Name-Last: Kisswani
Title: Revisiting the environmental kuznets curve hypothesis: evidence from the ASEAN-5 countries with structural breaks
Abstract:
This paper tests if the Environmental Kuznets Curve (EKC) hypothesis exists for ASEAN-5 countries in an annual sample data that covers 1971–2013, by utilizing Auto Regressive Distributed Lag (ARDL) methodology. The empirical findings give support for the EKC hypothesis for Thailand only, after considering the structural breaks. Furthermore, the paper tests the EKC hypothesis for a panel data of the ASEAN-5 by adopting the Pooled Mean Group (PMG) methodology. The results show that the long-run estimates provide no evidence for the EKC hypothesis. Finally, the paper examines the causality between the CO2 emissions and GDP. For individual countries, bidirectional causality was found in the case of Thailand and Malaysia, plus unidirectional causality running from GDP and squared GDP to CO2 emissions was found for Indonesia, but a unidirectional causality running from CO2 emissions to GDP and squared GDP was found for the Philippines, however, no causality effect was found for Singapore. Furthermore, the pairwise Dumitrescu and Hurlin Panel Causality test show a bidirectional effect between CO2 emissions and both GDP in addition to squared GDP.
Journal: Applied Economics
Pages: 1855-1868
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529399
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529399
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Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1855-1868
Template-Type: ReDIF-Article 1.0
Author-Name: Mahir Binici
Author-X-Name-First: Mahir
Author-X-Name-Last: Binici
Author-Name: Hakan Kara
Author-X-Name-First: Hakan
Author-X-Name-Last: Kara
Author-Name: Pınar Özlü
Author-X-Name-First: Pınar
Author-X-Name-Last: Özlü
Title: Monetary transmission with multiple policy rates: evidence from Turkey
Abstract:
Quantitative easing policies have led to persistent divergence between officially announced policy rates and short-term money market rates in many economies, making it challenging to assess the stance of monetary policy in the aftermath of the global financial crisis. Lack of data variation in short-term interest rates across time dimension has made it difficult to identify the monetary transmission mechanisms. In order to shed some light on this topic, we make advantage of a specific period from Turkey during which the central bank deliberately allowed the policy rates to diverge frequently from the interbank rates due to capital flow management purposes. Using bank-level flow data from this episode, we investigate the relationship between various short-term interest rate measures and bank loan/deposit rates through panel estimation methods. Our findings suggest that interbank rates are more relevant than central bank’s officially announced rates for the transmission of monetary policy when the two diverge from each other persistently. Interbank rates particularly play a key role in the pricing of loans and deposits. These findings provide helpful guidance for evaluating the monetary stance under unconventional policies.
Journal: Applied Economics
Pages: 1869-1893
Issue: 17
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1529400
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1529400
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Handle: RePEc:taf:applec:v:51:y:2019:i:17:p:1869-1893
Template-Type: ReDIF-Article 1.0
Author-Name: Moiz Bhai
Author-X-Name-First: Moiz
Author-X-Name-Last: Bhai
Author-Name: Irina Horoi
Author-X-Name-First: Irina
Author-X-Name-Last: Horoi
Title: Teacher characteristics and academic achievement
Abstract:
Identifying the impact of teacher characteristics on academic achievement has been a salient and reoccurring topic in education. We employ a twin-by-year identification strategy using matched teacher-student data from North Carolina to credibly estimate the impact of teacher characteristics such as experience, certification, and advanced degrees on academic achievement in math and reading. By using within-family variation the estimates from our model improve upon on earlier work by for time varying unobservable family shocks to non-schooling inputs. Our findings reveal that teacher experience and National Board certification have positive and significant effects on achievement in reading and math; however, we find inconclusive effects for advanced degrees. Notably, we show that teacher experience has the largest effects on student achievement, but our effects are smaller than the standard estimates in the literature. Overall, our estimates provide lower upper bounds for these key teacher characteristics.
Journal: Applied Economics
Pages: 4781-4799
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1597963
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1597963
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Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4781-4799
Template-Type: ReDIF-Article 1.0
Author-Name: Thi Mai Lan Nguyen
Author-X-Name-First: Thi Mai Lan
Author-X-Name-Last: Nguyen
Author-Name: Elissaios Papyrakis
Author-X-Name-First: Elissaios
Author-X-Name-Last: Papyrakis
Author-Name: Peter A.G Van Bergeijk
Author-X-Name-First: Peter A.G
Author-X-Name-Last: Van Bergeijk
Title: Assessing the price and output effects of monetary policy in Vietnam: evidence from a VAR analysis
Abstract:
Using monthly data, we perform a vector-autoregressive analysis to measure the effects of monetary policy on the Vietnamese economy. We concentrate our attention on the period following the introduction of the Law on Central Bank in January 1998 (which brought the national monetary policy and its objectives in line with international practices). Contrary to previous studies on Vietnam, we find evidence suggesting that monetary policy (through the manipulation of interest rates) is an effective policy tool in stabilizing prices. However, credit growth tends to induce inflationary pressures. In addition, we find that an expansion of broad money supply leads to an increase in industrial production.
Journal: Applied Economics
Pages: 4800-4819
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602708
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602708
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Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4800-4819
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Nahvi
Author-X-Name-First: Ali
Author-X-Name-Last: Nahvi
Author-Name: Yang Zhang
Author-X-Name-First: Yang
Author-X-Name-Last: Zhang
Author-Name: Ali Arabzadeh
Author-X-Name-First: Ali
Author-X-Name-Last: Arabzadeh
Author-Name: Sharif Y. Gushgari
Author-X-Name-First: Sharif Y.
Author-X-Name-Last: Gushgari
Author-Name: Halil Ceylan
Author-X-Name-First: Halil
Author-X-Name-Last: Ceylan
Author-Name: Charles T. Jahren
Author-X-Name-First: Charles T.
Author-X-Name-Last: Jahren
Author-Name: Douglas D. Gransberg
Author-X-Name-First: Douglas D.
Author-X-Name-Last: Gransberg
Author-Name: Sunghwan Kim
Author-X-Name-First: Sunghwan
Author-X-Name-Last: Kim
Title: Economics of upgrading gravel roads to Otta seal surface
Abstract:
Maintenance of low volume roads especially gravel roads is costly, and millions of funding annually are spent for aggregate replacement alone. Otta seal, compared to other bituminous surface treatments (BSTs) for low volume roads that require high-quality materials and specialized expertise, can be constructed using cheaper local aggregates and accessible equipment. However, only three states have reported Otta seal constructions and performance in the US. In this study, an economic analysis was conducted to compare the cost of maintaining a gravel road to the cost of upgrading an existing gravel road to a double Otta seal surface. This analysis was conducted at three levels: deterministic life-cycle cost analysis (LCCA), a stochastic Monte Carlo simulation-based LCCA, and a traffic based economic analysis. A generic one-mile rural road in Midwest was considered as a case study location. Although, according to the analysis conducted in this paper, an upgrade to Otta seal investment might be justified by maintenance savings, resorting to only such justification cannot warrant investment in most cases. The upgrade from gravel road to Otta seal, or any other BSTs, might be justified in terms of enhancing safety for road users and also encouraging economic development beneficial to local areas.
Journal: Applied Economics
Pages: 4820-4832
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602712
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602712
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Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4820-4832
Template-Type: ReDIF-Article 1.0
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Xinmin Zhang
Author-X-Name-First: Xinmin
Author-X-Name-Last: Zhang
Title: How time horizons and arbitrage cost influence the turnover premium?
Abstract:
There are multiple theories for the causal relation between stock turnover and expected return. The risk theory argues that stocks with high turnover generally have high information uncertainty, and thus high subsequent returns are required to compensate for the increased risk. By contrast, the theory of heterogeneous beliefs considers that high-turnover stocks have high speculative values and tend to be overpriced. We find that the information contained in stock turnover is multidimensional and controlling time horizons and arbitrage cost contributes to the reconciliation of the theories of risk compensation and heterogeneous beliefs. Our result shows that expected return is positively correlated with short-term turnover, and negatively correlated with long-term one. The premium on short-term turnover is consistent with the explanations based on transaction cost and liquidity risk. The premium on long-term turnover is much more pronounced among stocks with high arbitrage cost and can be largely explained by the mispricing theory and heterogeneous beliefs.
Journal: Applied Economics
Pages: 4833-4848
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602713
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602713
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Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4833-4848
Template-Type: ReDIF-Article 1.0
Author-Name: Jying-Nan Wang
Author-X-Name-First: Jying-Nan
Author-X-Name-Last: Wang
Author-Name: Hung-Chun Liu
Author-X-Name-First: Hung-Chun
Author-X-Name-Last: Liu
Author-Name: Shu-Mei Chiang
Author-X-Name-First: Shu-Mei
Author-X-Name-Last: Chiang
Author-Name: Yuan-Teng Hsu
Author-X-Name-First: Yuan-Teng
Author-X-Name-Last: Hsu
Title: On the predictive power of ARJI volatility forecasts for Bitcoin
Abstract:
Motivated by the recent literature on cryptocurrency volatility dynamics, this paper adopts the ARJI, GARCH, EGARCH, and CGARCH models to explore their capabilities to make out-of-sample volatility forecasts for Bitcoin returns over a daily horizon from 2013 to 2018. The empirical results indicate that the ARJI jump model can cope with the extreme price movements of Bitcoin, showing comparatively superior in-sample goodness-of-fit, as well as out-of-sample predictive performance. However, due to the excessive volatility swings on the cryptocurrency market, the realized volatility of Bitcoin prices is only marginally explained by the GARCH genre of employed models.
Journal: Applied Economics
Pages: 4849-4855
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602714
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602714
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Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4849-4855
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Khamis Hamed Al-Yahyaee
Author-X-Name-First: Khamis Hamed
Author-X-Name-Last: Al-Yahyaee
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Title: Tail dependence risk exposure and diversification potential of Islamic and conventional banks
Abstract:
This paper undertakes a rolling window comparative analysis of risks for portfolios consisting of GCC Islamic and conventional bank indices. We draw our empirical results by employing canonical, drawable and regular vine copula models, as well as by implementing a portfolio optimization method with a conditional Value-at-Risk constraint. We find evidence of higher riskiness in the group of Islamic banks relative to the group of conventional banks across each of the financial rolling window scenarios under consideration. Specifically, a greater negative (nonlinear) tail asymmetric dependence is observed in the pairs of Islamic banks’ relationships. The results also show that the optimal portfolio model supports a clear preference towards the group of conventional banks in regard to risk minimization and diversification benefits.
Journal: Applied Economics
Pages: 4856-4869
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602716
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602716
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Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4856-4869
Template-Type: ReDIF-Article 1.0
Author-Name: Huaigang Long
Author-X-Name-First: Huaigang
Author-X-Name-Last: Long
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Yuexiang Jiang
Author-X-Name-First: Yuexiang
Author-X-Name-Last: Jiang
Title: Beware of the crash risk: Tail beta and the cross-section of stock returns in China
Abstract:
We investigate the pricing of systematic tail risk measured by tail beta in the Chinese equity market. Using an array of tests, we examine the performance of more than 3,300 stocks for the years 1999 through 2018. Contrary to evidence from developed markets, we demonstrate a strong negative relationship between the tail beta and future returns. The effect is robust to many considerations and cannot be explained by established pricing factors or alternative risk or illiquidity measures. We link our findings to specific characteristics of the Chinese stock market.
Journal: Applied Economics
Pages: 4870-4881
Issue: 44
Volume: 51
Year: 2019
Month: 9
X-DOI: 10.1080/00036846.2019.1602717
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1602717
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Handle: RePEc:taf:applec:v:51:y:2019:i:44:p:4870-4881
Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Lin
Author-X-Name-First: Qiang
Author-X-Name-Last: Lin
Author-Name: Tao Zhang
Author-X-Name-First: Tao
Author-X-Name-Last: Zhang
Title: Trade credit in economic fluctuations and its impact on corporate performance: a panel data analysis from China
Abstract:
Trade credit is an important auxiliary measure to complete transactions in supply chains, and it is also an important source of short-term financing for companies. This paper uses panel data for Chinese listed companies from 2002 to 2016 to study the impact of Tobin’s Q and bargaining power on trade credit under different economic conditions, and we ultimately study how trade credit affects companies’ performance during economic fluctuations. We find that companies with higher Tobin’s Q values tend to reduce the use of trade credit demand, which increases during the economic expansion period and weakens during the economic downturn. Second, companies with lower bargaining power tend to increase their use of trade credit expansion as a competitive tool; however, this effect will weaken during the economic expansion period and will increase during the economic downturn. We also find that the amounts of trade credit demand and expansion are negatively correlated with corporate performance and that this effect weakens during the economic expansion period and increases during the economic downturn. The cycle of trade credit expansion is positively related to corporate performance. This relationship weakens during the economic expansion and strengthens during the economic downturn.
Journal: Applied Economics
Pages: 1-18
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1621982
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1621982
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Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:1-18
Template-Type: ReDIF-Article 1.0
Author-Name: Fida Karam
Author-X-Name-First: Fida
Author-X-Name-Last: Karam
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: A new dawn for MENA firms: service trade liberalization for more competitive exports
Abstract:
While micro-level empirical evidence has emerged to highlight the positive effect of services deregulation on the productivity and exports of manufacturing firms in developing countries, the MENA region has been neglected in the literature. The current paper fills the gap by exploring the effect of service protection on the extensive and intensive trade margins of manufacturing and services firms in selected MENA countries for 2013. The service protection variable is constructed using two different measures: the service trade restrictiveness index and the tariff equivalent of services, weighted by the input-output technical coefficient of service sectors. Our results show that service protection is a fixed export cost, exerting a negative and significant effect on the extensive margin, without having a significant effect on the intensive margin of the firm. We also find that the burden of service barriers falls on small firms that struggle to enter international markets, and on firms operating in high value-added sectors such as ‘motor vehicles’.
Journal: Applied Economics
Pages: 19-35
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1624921
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1624921
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Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:19-35
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Beatriz Hernández-Lara
Author-X-Name-First: Ana Beatriz
Author-X-Name-Last: Hernández-Lara
Author-Name: Juan Pablo Gonzales-Bustos
Author-X-Name-First: Juan Pablo
Author-X-Name-Last: Gonzales-Bustos
Title: The influence of family businesses and women directors on innovation
Abstract:
This work seeks to contribute to the debate about whether or not family businesses are more innovative than other kind of companies, and explore the specific effects women on boards have on innovation, comparing family and non-family businesses. Data collected from Spanish listed companies belonging to innovative sectors between 2003 and 2017 confirm that being a family business impacts positively on the number of registered patents and the proportion of women on boards exert a positive influence on R&D and patents. Moreover, the proportion of women on boards influences innovation in a different way when family and non-family businesses are compared, and depending on whether female directors belong or not to the family of control. Therefore, the results obtained suggest some relevant recommendations for research and practitioners, providing new insights into the debate on the benefits of family companies for innovation and of gender diversity of their boards.
Journal: Applied Economics
Pages: 36-51
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1638496
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638496
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Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:36-51
Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Brenner
Author-X-Name-First: Steffen
Author-X-Name-Last: Brenner
Author-Name: Sezen Aksin Sivrikaya
Author-X-Name-First: Sezen
Author-X-Name-Last: Aksin Sivrikaya
Author-Name: Joachim Schwalbach
Author-X-Name-First: Joachim
Author-X-Name-Last: Schwalbach
Title: Who is on LinkedIn? Self-selection into professional online networks
Abstract:
We analyze a large data set of fully employed individuals gathered through incentive-compatible surveys to study who joins professional social network sites (SNS) such as LinkedIn. We test the conflicting predictions that a) individuals who are unsatisfied with their career status adversely select into professional SNS in order to reap marginal online network benefits vs. b) high status individuals positively select into these networks because they are more likely to receive invitations to join. Our tests support b) and reject a). Similar estimations for private SNS (e.g., Facebook) reveal that the observed effects are specific to professional SNS and hence not driven by unobserved differences in social capital or the affinity to use social media. We also detect that environments conducive of professional social interactions increase the likelihood to use professional SNS. Controlling for sample selection bias does not qualitatively change the results.
Journal: Applied Economics
Pages: 52-67
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1638497
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1638497
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Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:52-67
Template-Type: ReDIF-Article 1.0
Author-Name: Vaibhav Lalwani
Author-X-Name-First: Vaibhav
Author-X-Name-Last: Lalwani
Author-Name: Madhumita Chakraborty
Author-X-Name-First: Madhumita
Author-X-Name-Last: Chakraborty
Title: Aggregate earnings and gross domestic product: International evidence
Abstract:
Recent studies in macro accounting suggest that changes in aggregate accounting earnings can predict quarterly GDP growth in the USA. Our objective in this study is to test the robustness of the association between aggregate earnings and real GDP growth across multiple countries and for different definitions of aggregate earnings. We test whether aggregate earnings changes predict future economic growth in eight countries – Australia, Canada, China, India, Japan, South Korea, the UK, and the USA. We find positive evidence regarding the generalisability of the aggregate earnings – real GDP relation in an international context. In additional tests, we find that economic forecasters appear to underreact to aggregate earnings information. Our results show that aggregate earnings lead economic growth and forecasts of real GDP growth can be improved by incorporating aggregate earnings information. Further, we also test if negative earnings changes contain more information than positive earnings changes and find only modest evidence in favour of this hypothesis. The results are robust to alternative statistical methodology and the removal of the USA data from the sample.
Journal: Applied Economics
Pages: 68-84
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1640859
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640859
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Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:68-84
Template-Type: ReDIF-Article 1.0
Author-Name: Gaoxiu Qiao
Author-X-Name-First: Gaoxiu
Author-X-Name-Last: Qiao
Author-Name: Yuxin Teng
Author-X-Name-First: Yuxin
Author-X-Name-Last: Teng
Author-Name: Yanyan Xu
Author-X-Name-First: Yanyan
Author-X-Name-Last: Xu
Author-Name: Lu Wang
Author-X-Name-First: Lu
Author-X-Name-Last: Wang
Title: The cross-market dynamic effects of liquidity on volatility: evidence from Chinese stock index and futures markets
Abstract:
This article investigates the cross-market asymmetric dynamic effects of liquidity on realized volatility and its intersection with jump volatility between Chinese stock index and futures market. The influence of index liquidity on futures market volatility is negative significantly after controlling for the long memory feature of realized volatility, and becomes much stronger for the after-crisis period. Liquidity of the futures market has a relative weak positive impact on stock volatility, and becomes insignificant after crisis. Our study reveals different influence mechanisms from the commonly known information transmission that new information is reflected in futures prices and volatility more quickly. The cross-market dynamic effects are time-varying and not influenced after controlling for jump volatility. Especially, index liquidity impacts positive jumps of both markets, while there is no impact of futures liquidity to index jump volatility.
Journal: Applied Economics
Pages: 85-99
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1640861
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1640861
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Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:85-99
Template-Type: ReDIF-Article 1.0
Author-Name: Gideon Danso-Abbeam
Author-X-Name-First: Gideon
Author-X-Name-Last: Danso-Abbeam
Author-Name: Lloyd J. S. Baiyegunhi
Author-X-Name-First: Lloyd J. S.
Author-X-Name-Last: Baiyegunhi
Title: Technical efficiency and technology gap in Ghana’s cocoa industry: accounting for farm heterogeneity
Abstract:
This study employs a stochastic metafrontier framework to examine the performance of smallholder cocoa farmers using cross-country survey from Ghana. The results indicate that the output of farmers from all the regions lags behind their potential with the mean technical efficiency of 0.65, 0.76, 0.60 and 0.74 for Western, Brong-Ahafo, Ashanti and Eastern regions, respectively. Each region faces a technology gap when their performances are compared with the technology available in the industry as a whole. The study identified sources of farmers’ technical inefficiency emanating from a combined effects of socioeconomic and farm-specific factors although effects of some variables were not significant. However, farmers in all the regions have the potential to overcome technological constraints and achieve the highest attainable productivity levels. It is, therefore, important that Ghana cocoa board strengthened its strategies to the latter to improve farmers’ technical and managerial skills on the efficient use of resources.
Journal: Applied Economics
Pages: 100-112
Issue: 1
Volume: 52
Year: 2020
Month: 1
X-DOI: 10.1080/00036846.2019.1644439
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1644439
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Handle: RePEc:taf:applec:v:52:y:2020:i:1:p:100-112
Template-Type: ReDIF-Article 1.0
Author-Name: Youssouf Kiendrebeogo
Author-X-Name-First: Youssouf
Author-X-Name-Last: Kiendrebeogo
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Title: Financial development and poverty: evidence from the CFA Franc Zone
Abstract:
The financial liberalization in the 1980s and early 1990s led the CFA Franc Zone countries to deepen reforms in their financial systems. These reforms fostered financial development, which in turn may have reduced income poverty, as emphasized by several theoretical arguments in the literature. This study aims at estimating the contribution of financial development to poverty alleviation in the CFA Franc Zone. Results based on a panel of CFA Franc Zone countries show that financial development is associated with a drop in the proportion of poor population. Next, financial development reduces the extent to which the income of individuals falls below the poverty line. Moreover, in some cases, the effect of financial development on poverty may be subject to nonlinearities. Finally, financial instability or unstable financial development leading to crises may mitigate the favourable effect of financial development on poverty reduction. These findings are robust to the use of alternative measures of financial development and hold after controlling for a potential simultaneity and a small sample biases.
Journal: Applied Economics
Pages: 5421-5436
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1176114
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1176114
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Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5421-5436
Template-Type: ReDIF-Article 1.0
Author-Name: Sekyung Oh
Author-X-Name-First: Sekyung
Author-X-Name-Last: Oh
Author-Name: Woo Sung Kim
Author-X-Name-First: Woo Sung
Author-X-Name-Last: Kim
Title: Growth opportunities and trade credit: evidence from Chinese listed firms
Abstract:
Private firms in China have led the explosive growth of the country’s economy, but with restricted or no access to formal financing. It is puzzling that these firms use relatively less trade credit than their counterparts in developed countries. We argue that firms with more growth opportunities should rely mainly on internal financing owing to high asymmetric information, especially in a financial market environment biased towards state-owned enterprises (SOEs) such as China. To explore growth opportunities, these firms may reduce their level of trade credit in the trade-off they face in deciding where to invest. Using panel data of Chinese non-financial listed firms for the period 2003–2013, we find that the relationship between growth opportunities and trade credit (both accounts receivable and payable) is significantly negative and is more pronounced in private firms than in SOEs. Furthermore, we also find that subsequent to the new receivable pledge policy being introduced, Chinese firms with more growth opportunities have higher accounts receivable, but similar levels of accounts payable.
Journal: Applied Economics
Pages: 5437-5447
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178846
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178846
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Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5437-5447
Template-Type: ReDIF-Article 1.0
Author-Name: Yangyan Shi
Author-X-Name-First: Yangyan
Author-X-Name-Last: Shi
Author-Name: Tiru Arthanari
Author-X-Name-First: Tiru
Author-X-Name-Last: Arthanari
Author-Name: Lincoln C. Wood
Author-X-Name-First: Lincoln C.
Author-X-Name-Last: Wood
Title: An empirical study of third-party purchase: New Zealand users’ perspective
Abstract:
This article investigates the potential for third-party purchase (3PP) services offered by third-party logistics (3PL) providers, from the perspective of 3PL users, based on transaction cost analysis. We conducted a survey of New Zealand 3PL users and received 163 usable responses. Structural equation modelling was used to test the conceptual model. We found that 3PL users are more likely to adopt 3PP service when there is greater uncertainty. Asset specificity, frequency and transaction size do not have a significant relationship with 3PP service adoption. However, 3PP service is significantly related to the value-to-client and benefit-to-3PL provider. This study is pioneering research on 3PP service as a value-added service offered by 3PL providers from the perspective of 3PL users. The findings suggest that offering 3PP service will provide mutual benefits and value for both 3PL users and their 3PL providers.
Journal: Applied Economics
Pages: 5448-5461
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178847
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178847
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Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5448-5461
Template-Type: ReDIF-Article 1.0
Author-Name: Min Bai
Author-X-Name-First: Min
Author-X-Name-Last: Bai
Author-Name: Xiao-Ming Li
Author-X-Name-First: Xiao-Ming
Author-X-Name-Last: Li
Author-Name: Yafeng Qin
Author-X-Name-First: Yafeng
Author-X-Name-Last: Qin
Title: Short-selling constraints and stock-valuation pattern: a regime–event analysis
Abstract:
Employing a novel approach of integrating regime analysis with event analysis, we examine the overall valuation pattern of stocks that traverse the short-sale-ban and the no-ban regime, employing data from the Hong Kong market. Switching from the ban to the no-ban regime, stocks initially undergo net cumulative undervaluation and then revert to fundamental valuation. Switching from the no-ban to the ban regime, stocks initially experience net cumulative excessive overvaluation and then revert to permanent overvaluation. The amount of net cumulative undervaluation is greater than the amount of net cumulative excessive overvaluation. This documented overall pattern offers a broad perspective on short-sale constraints and stock valuation.
Journal: Applied Economics
Pages: 5462-5484
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178848
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178848
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Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5462-5484
Template-Type: ReDIF-Article 1.0
Author-Name: Florian Szücs
Author-X-Name-First: Florian
Author-X-Name-Last: Szücs
Title: The triggers and clustering properties of merger waves
Abstract:
This article studies the triggers and the agglomeration of mergers and acquisitions (M&A) activity within clusters constituted by time, market and industry. Based on almost 500,000 individual transactions, we find that industry factors play a significant role in triggering activity and that M&A agglomerates strongly across related industries. While clustering in time turns out to be insignificant, stock market effects can be either an attracting or a repelling force, depending on the type of deal examined. This supports the view that merger waves are largely driven by industry shocks.
Journal: Applied Economics
Pages: 5485-5496
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178849
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178849
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Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5485-5496
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Giaccaria
Author-X-Name-First: Sergio
Author-X-Name-Last: Giaccaria
Author-Name: Vito Frontuto
Author-X-Name-First: Vito
Author-X-Name-Last: Frontuto
Author-Name: Silvana Dalmazzone
Author-X-Name-First: Silvana
Author-X-Name-Last: Dalmazzone
Title: Valuing externalities from energy infrastructures through stated preferences: a geographically stratified sampling approach
Abstract:
The externalities produced by high-voltage transmission lines are multidimensional, may strongly depend on the local context, and are thus difficult to capture through standard environmental valuation exercises. We experiment a GIS approach to design a geographically stratified contingent valuation sample of the population resident in infrastructure corridors in a whole region. We estimate, by means of a binary choice logit model, the perceived marginal damage from impacts of power lines on human health, the landscape and the environment. Specific treatment is given to qualitatively different forms of impact, namely real estate depreciation versus diffused perception of damage, arising at different distances from the lines. The set of GIS-based variables (proximity to power lines, presence of other infrastructure, endowment of natural and built heritage and other local context variables) prove to be significant predictors in the utility function of resident households. Finally, we compute simulated values that combine information on individual’s willingness to pay, population density and the dimension of the considered corridor around the infrastructure, so as to generalize the outcomes of case-specific studies for use in policy choices such as infrastructure localization, undergrounding and negotiation of compensations.
Journal: Applied Economics
Pages: 5497-5512
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178850
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178850
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Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5497-5512
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: Soccer transfers, team efficiency and the sports cycle in the most valued European soccer leagues – have European soccer teams been efficient in trading players?
Abstract:
The sale of soccer players is a serious issue for the sustainability of professional teams. This article discusses the efficiency of the values that 183 European soccer teams have received for the sales of their players since 2007. We estimated stochastic frontiers for these soccer teams using stochastic frontier analysis. We found that teams with higher numbers of titles, with huge past acquisitions of players, and achieving good rankings in the previous season tend to receive more transfer inflows. The efficiency of these inflows can be significantly influenced if the team exhibits a long sports history or if the team participates in the Champions League or in the Europa League.
Journal: Applied Economics
Pages: 5513-5524
Issue: 56
Volume: 48
Year: 2016
Month: 12
X-DOI: 10.1080/00036846.2016.1178851
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1178851
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Handle: RePEc:taf:applec:v:48:y:2016:i:56:p:5513-5524
Template-Type: ReDIF-Article 1.0
Author-Name: Michiel Bijlsma
Author-X-Name-First: Michiel
Author-X-Name-Last: Bijlsma
Author-Name: Clemens Kool
Author-X-Name-First: Clemens
Author-X-Name-Last: Kool
Author-Name: Marielle Non
Author-X-Name-First: Marielle
Author-X-Name-Last: Non
Title: The effect of financial development on economic growth: a meta-analysis
Abstract:
In this article, we contribute to the current debate on the sign and size of the finance–growth relation. To this purpose, we use a meta-analysis with 551 estimates from 68 empirical studies that take private credit to GDP as a measure for financial development. We distinguish between linear and logarithmic specifications. First, we find evidence of significantly positive publication bias in both the linear and log-linear specifications. It suggests the literature has exaggerated the size of the finance–growth effect in the past. Second, we find suggestive evidence that the logarithmic specification is superior to the linear specification. In the logarithmic specification when accounting for publication bias, a 10% increase in credit to the private sector increases economic growth with 0.09 percentage points. For the linear estimates, no significant effect of credit to the private sector on economic growth is found on average. Overall, the evidence points to a positive but decreasing effect of financial development on growth and supports the ‘too much’ finance hypothesis.
Journal: Applied Economics
Pages: 6128-6148
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489503
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489503
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Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6128-6148
Template-Type: ReDIF-Article 1.0
Author-Name: Darlington Sabasi
Author-X-Name-First: Darlington
Author-X-Name-Last: Sabasi
Author-Name: C. Richard Shumway
Author-X-Name-First: C. Richard
Author-X-Name-Last: Shumway
Title: Climate change, health care access and regional influence on components of U.S. agricultural productivity
Abstract:
This article examines factors driving three components of total factor productivity change (TFPC) in U.S. agriculture – technical change (TC), technical efficiency change (TEC), and scale and mix efficiency change (SMEC). We also examine TFPC and contrast implications derived from the component models with those from a directly estimated TFPC model. Our results show that TC and SMEC are both significantly impacted by innovation through public research and improved human capital through education and health care access. TEC and SMEC are significantly affected by farm size, and the latter is significantly affected by public policy. The ratio of family-to-total labour, terms of trade and precipitation have significant impacts on all three components, but extension has no significant impact on any component. Climate change variables are the most impactful factors on each component as well as on TFPC. While the impact of climate change is heterogeneous across regions and components, its estimated historical impact is most often positive. Nearly all TFPC elasticities estimated directly are qualitatively the same as those calculated from the component models and quantitatively similar.
Journal: Applied Economics
Pages: 6149-6164
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489504
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489504
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Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6149-6164
Template-Type: ReDIF-Article 1.0
Author-Name: Alan T. Wang
Author-X-Name-First: Alan T.
Author-X-Name-Last: Wang
Title: A reexamination on the effect of bank competition on bank non-performing loans
Abstract:
This article examines whether competition in the deposit and loan markets results in a more stable or fragile banking industry. Following the assumption that deposit and loan competitions are not separable, a simple equilibrium model is developed. Then, using the aggregate time-series data of Federal Deposit Insurance Corporation (FDIC)-insured financial institutions, we estimate the generalized VAR model of deposit rate (DR), interest margin between the loan and DRs, and non-performing loan ratio. Our results support the competition–fragility hypothesis.
Journal: Applied Economics
Pages: 6165-6173
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489505
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489505
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Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6165-6173
Template-Type: ReDIF-Article 1.0
Author-Name: Grzegorz Wesoƚowski
Author-X-Name-First: Grzegorz
Author-X-Name-Last: Wesoƚowski
Title: Do long-term interest rates drive GDP and inflation in small open economies? Evidence from Poland
Abstract:
This article investigates the impact of long-term interest rates on macroeconomic variables in a small open economy. It shows that the time-varying term premium stabilizes GDP without affecting significantly inflation volatility in Poland – a typical open economy with flexible exchange rate. This conclusion is drawn from an estimated dynamic stochastic general equilibrium model in which segmented asset markets and imperfect asset substitutability give rise to the time-varying term premium in the long-term interest rate. Furthermore, the impulse response analysis of the model reveals that the term premium stabilizes GDP when the small economy is hit by shocks that are absent in closed economy models (country risk premium and export preference) which points to the different impact of the term premium on relatively close (large) and open (small) economies.
Journal: Applied Economics
Pages: 6174-6192
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489507
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489507
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Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6174-6192
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Royal
Author-X-Name-First: Andrew
Author-X-Name-Last: Royal
Author-Name: Galib Rustamov
Author-X-Name-First: Galib
Author-X-Name-Last: Rustamov
Title: Do small pecuniary incentives motivate residential peak energy reductions? Experimental evidence
Abstract:
This article evaluates demand-side interventions aimed at reducing residential consumption during the peak energy periods. The interventions were applied to a sample of high-income households and included a set of text message reminders advising participants to reduce electricity use during peak hours. One group of participants received accompanying intra-day increases in peak-hour kWh rates, while another group of participants did not receive any price incentives. We find that intra-day price increases, though small in absolute magnitude, produced significant reductions in peak energy use. Reductions in use, as compared to a control group, were significantly higher among the pricing group compared to the group only receiving text messages, suggesting that pricing played a central role in influencing behaviour. Our results contribute to ongoing policy discussion about the effect of dynamic pricing on consumer energy demand.
Journal: Applied Economics
Pages: 6193-6202
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489508
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489508
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Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6193-6202
Template-Type: ReDIF-Article 1.0
Author-Name: Steven P. Cassou
Author-X-Name-First: Steven P.
Author-X-Name-Last: Cassou
Author-Name: C. Patrick Scott
Author-X-Name-First: C. Patrick
Author-X-Name-Last: Scott
Author-Name: Jesús Vázquez
Author-X-Name-First: Jesús
Author-X-Name-Last: Vázquez
Title: Optimal monetary policy revisited: does considering US real-time data change things?
Abstract:
The primary goal of this article is to investigate whether properly modelling real-time data and optimal real-time decision-making of a monetary planner provides new insights into monetary policy behaviour and outcomes. This article extends a variant of the asymmetric preference model suggested by Ruge-Murcia to investigate the use of real-time data available to policymakers when making their decisions and revised data which more accurately measure economic performance, but is only available much later. In our extended model, the central banker targets a weighted average of revised and real-time inflation together with a weighted average of revised and real-time output. Moreover, we allow for an asymmetric central bank response to real-time data depending on whether the unemployment rate is high or low. Our model identifies several new potential sources of inflation bias due to data revisions. Our empirical results suggest that the Federal Reserve Bank focuses on targeting revised inflation during low unemployment periods, but it weighs heavily real-time inflation during high unemployment periods. The inflation bias due to data revisions is comparable in magnitude to the bias from asymmetric central banker preferences with the bias being somewhat larger during high unemployment.
Journal: Applied Economics
Pages: 6203-6219
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1489511
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489511
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Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6203-6219
Template-Type: ReDIF-Article 1.0
Author-Name: Robert G. Snigaroff
Author-X-Name-First: Robert G.
Author-X-Name-Last: Snigaroff
Author-Name: David Wroblewski
Author-X-Name-First: David
Author-X-Name-Last: Wroblewski
Title: An earnings, liquidity, and market model
Abstract:
We combine the market with earnings, liquidity and their respective growth, with motivation via a simple pricing equation, to model the cross-section with three, four and five factors. As first-order variables in widespread investor use for over a hundred years, earnings and liquidity have ready connection to investor preferences. They obtain as good a cross-sectional description of security prices as other factor models without redundancy. We weight portfolios on volume, relying on a direct SDF representation of investor’s preference for liquidity, demonstrating its additional dimension. Recent research arguing for the demise of liquidity is premature; indeed, its importance has grown.
Journal: Applied Economics
Pages: 6220-6248
Issue: 57
Volume: 50
Year: 2018
Month: 12
X-DOI: 10.1080/00036846.2018.1495826
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495826
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Handle: RePEc:taf:applec:v:50:y:2018:i:57:p:6220-6248
Template-Type: ReDIF-Article 1.0
Author-Name: Chuanhua Wei
Author-X-Name-First: Chuanhua
Author-X-Name-Last: Wei
Author-Name: Chao Liu
Author-X-Name-First: Chao
Author-X-Name-Last: Liu
Author-Name: Fengyun Gui
Author-X-Name-First: Fengyun
Author-X-Name-Last: Gui
Title: Geographically weight seemingly unrelated regression (GWSUR): a method for exploring spatio-temporal heterogeneity
Abstract:
Geographically weight seemingly unrelated regression is a useful technique to explore the temporal and spatial heterogeneity simultaneously in space-time data analysis. In this article, a local linear-based estimating approach is developed to estimate the unknown coefficient functions. Some simulations are conducted to examine the performance of our proposed method and the results are satisfactory. Finally, a real data example is considered.
Journal: Applied Economics
Pages: 4189-4195
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279266
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279266
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Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4189-4195
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Jose Perez Villadoniga
Author-X-Name-First: Maria Jose
Author-X-Name-Last: Perez Villadoniga
Author-Name: Ana Rodríguez-Alvarez
Author-X-Name-First: Ana
Author-X-Name-Last: Rodríguez-Alvarez
Title: Analysing wage differentials when workers maximize the return to human capital investment
Abstract:
The analysis of the determinants of differences in wages across workers has traditionally relied on the estimation of average earnings functions. In this article, we propose a new theoretical model where it is the workers who decide the amount they wish to invest in human capital, taking into account the costs of acquiring those skills, for the purpose of maximizing earnings. In this model, both human capital and marginal productivity are likely to be influenced by the individual’s (unobserved) characteristics such as ability or motivation, potentially giving rise to endogeneity problems. In this context, the empirical implementation of our theoretical model allows us, under certain assumptions, to obtain consistent estimates even under the assumption of endogeneity. We present an empirical application to the education sector using data from the Spanish Structure of Earnings Survey 2010. Our results show that females and workers in the private education sector face more difficulties in achieving their maximum potential wage.
Journal: Applied Economics
Pages: 4196-4208
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279267
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279267
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Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4196-4208
Template-Type: ReDIF-Article 1.0
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: How pervasive is the effect of culture on stock market linkages? Evidence across regions and economic cycles
Abstract:
We conduct a comprehensive study on the effect of culture on stock market linkages. With data on 25 national stock markets, a quantile regression model is used to estimate the determinants of market linkages using culture variable/s such as language, religion and Hofstede’s cultural dimensions while controlling for distance, economic and legal variables. Further, we test whether these effects hold across regions and if changes are detected during periods of market crisis. We also test if market liquidity, an indicator of market efficiency, diminishes the impact of culture on market linkages. The main conclusion is that culture preferences shape investor choices, which affects integration between stock markets. The equity markets with similar cultural traits tend to increase market linkages; however, we observe differences across regions. Furthermore, liquidity and economic uncertainty fail to have an impact on the significance of culture variable/s as determinants of market linkages.
Journal: Applied Economics
Pages: 4209-4230
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279268
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279268
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Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4209-4230
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Dreger
Author-X-Name-First: Christian
Author-X-Name-Last: Dreger
Author-Name: Yun Schüler-Zhou
Author-X-Name-First: Yun
Author-X-Name-Last: Schüler-Zhou
Author-Name: Margot Schüller
Author-X-Name-First: Margot
Author-X-Name-Last: Schüller
Title: Determinants of Chinese direct investments in the European Union
Abstract:
This article analyses the determinants of Chinese foreign direct investment (FDI) activities in the European Union (EU). Evidence is based on panel Poisson models drawing on two investment monitors at the individual project level. Greenfield investments (GI) and mergers and acquisitions (M&A) are distinguished. The findings indicate that market size and bilateral trade are the main factors for Chinese investment in the EU. In contrast, business-friendly institutions do not foster FDI. Probably, Chinese investors are risk averse, and prefer regions with less competitive markets. The striking difference between GIs and M&As is related to unit labour costs. Higher costs make the host country less attractive for the establishment of new firms, but do not affect the involvement in existing firms. The sectoral dispersion of Chinese FDI in the EU did not change much since the global financial crisis. Most relevant shifts have occurred in research and development (R&D), where low-income EU countries have become increasingly attractive.
Journal: Applied Economics
Pages: 4231-4240
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279269
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279269
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Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4231-4240
Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Chever
Author-X-Name-First: Lisa
Author-X-Name-Last: Chever
Author-Name: Stéphane Saussier
Author-X-Name-First: Stéphane
Author-X-Name-Last: Saussier
Author-Name: Anne Yvrande-Billon
Author-X-Name-First: Anne
Author-X-Name-Last: Yvrande-Billon
Title: The law of small numbers: investigating the benefits of restricted auctions for public procurement
Abstract:
A commonly accepted view in the academic literature is that dispensing with competition may only be beneficial when tendering complex contracts. However, restricted auctions are frequently used among EU member states to procure small contracts. In this article, we investigate this paradox. Using an original data set of 180 contracts used by a local public buyer of social housing between 2006 and 2009, we show that limiting competition may enable economies to be made on transaction costs while the most efficient bidders still come forward, and that abuses such as corruption or favouritism do not result. To our knowledge, this article is the first to shed light on the advantages of using restricted auctions when tendering small simple contracts.
Journal: Applied Economics
Pages: 4241-4260
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279270
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279270
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Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4241-4260
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Ferda Halicioglu
Author-X-Name-First: Ferda
Author-X-Name-Last: Halicioglu
Author-Name: Sahar Bahmani
Author-X-Name-First: Sahar
Author-X-Name-Last: Bahmani
Title: Do exchange rate changes have symmetric or asymmetric effects on the demand for money in Turkey?
Abstract:
As a result of the research conducted by Nobel Laureate Robert Mundell (1963), most studies estimating the demand for money today do include the exchange rate in their specification to account for currency substitution. Previous studies that did this for the Turkish demand for money assumed that exchange rate changes do have symmetric effects on the demand for money in Turkey. In this article, we question this assumption. By using the nonlinear ARDL approach, we show that indeed exchange rate changes do have short-run and long-run asymmetric effects on the M1 demand for money. Introducing nonlinearity also yields a stable money demand.
Journal: Applied Economics
Pages: 4261-4270
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279271
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279271
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Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4261-4270
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantin A. Kholodilin
Author-X-Name-First: Konstantin A.
Author-X-Name-Last: Kholodilin
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Title: Think national, forecast local: a case study of 71 German urban housing markets
Abstract:
In this article, we examine whether the local indicators are able to predict the city-level housing prices and rents better than national indicators. For this purpose, we assess the forecasting ability of 126 indicators and 21 types of forecast combinations using a sample of 71 large German cities. There are several predictors that are especially useful, namely price-to-rent ratios, national-level business confidence, and consumer surveys. We also find that combinations of individual forecasts are among the top forecasting models. On average, the forecast improvements attain about 20%, measured by a reduction in root mean square error, compared to the naive models.
Journal: Applied Economics
Pages: 4271-4297
Issue: 42
Volume: 49
Year: 2017
Month: 9
X-DOI: 10.1080/00036846.2017.1279272
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1279272
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Handle: RePEc:taf:applec:v:49:y:2017:i:42:p:4271-4297
Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Zheng Li
Author-X-Name-First: Zheng
Author-X-Name-Last: Li
Author-Name: Peng Guo
Author-X-Name-First: Peng
Author-X-Name-Last: Guo
Title: The impact of income, economic openness and interest rates on housing prices in China: evidence from dynamic panel quantile regression
Abstract:
The rapid growth of housing prices has attracted the attention of the whole of society in China. This article adopts the dynamic panel quantile regression to investigate the impact of income, economic openness and interest rates on housing prices in China, based on the panel data of 35 major cities from 2002 to 2012. Compared with previous studies, we can more precisely and reasonably discuss the impact of these variables on different levels of housing prices. The empirical results indicate that the impact of independent variables on housing prices is heterogeneous across quantiles. Specifically, the impact of income is positive and significant across quantiles, and the impact becomes greater at the 90th and 95th quantiles. Economic openness has a positive and significant effect at the 5th–80th quantiles, which support the Balassa–Samuelson effect, but it is insignificant at the 90th and 95th quantiles. The impact of interest rates is positive and significant at low quantiles, but the impact is negative and insignificant at high quantiles. Furthermore, we also find that the coefficients of interest rates at various quantiles are smaller. In addition, the population has a significant positive effect across quantiles. Finally, we provide important policy implications.
Journal: Applied Economics
Pages: 4086-4098
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441512
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441512
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Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4086-4098
Template-Type: ReDIF-Article 1.0
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: John Inekwe
Author-X-Name-First: John
Author-X-Name-Last: Inekwe
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Title: Remittances and financial development: empirical evidence from heterogeneous panel of countries
Abstract:
Remittances are the second largest source of external finance after foreign direct investment in the developing economies. In this study, we analyse the role of incoming remittances on financial development for 57 highest remittance recipient economies. A long run equilibrium relationship is established between remittances and three alternative indicators of financial development. Estimates from the dynamic system-generalized method of moments reflect lower elasticity values for developing countries compared to the developed ones. Our findings are robust across countries, and highlight the necessity for strengthening institutional set-ups to increase the inflow of remittances, which will enhance financial development across countries. The role of foreign direct investment is found to be significant in most cases.
Journal: Applied Economics
Pages: 4099-4112
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441513
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441513
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Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4099-4112
Template-Type: ReDIF-Article 1.0
Author-Name: David A. Walker
Author-X-Name-First: David A.
Author-X-Name-Last: Walker
Title: How they lost the presidency
Abstract:
For the second time in this century and the fifth time in US history, the 2016 presidential popular vote winner was not elected president. One day before the election, the author predicted (https://finpolicy.georgetown.edu) Secretary Hillary Clinton would receive between 50.49 and 51.78 percent of the two-party popular vote. She received 51.11 percent. The difference between the popular vote winner and Electoral College outcome inspired the author, ex ante, to develop a state-by-state, cross-section probit model to understand Donald Trump’s Electoral College victory, based on economic, racial and educational characteristics. Trump won the US presidency by winning some of the largest states (Pennsylvania, Michigan and Wisconsin with 17 percent of the necessary electoral votes) by small margins, particularly states with modest per capita incomes and economic growth, and losing the minority vote by less than expected.
Journal: Applied Economics
Pages: 4113-4121
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441514
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441514
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Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4113-4121
Template-Type: ReDIF-Article 1.0
Author-Name: Sakiru Adebola Solarin
Author-X-Name-First: Sakiru Adebola
Author-X-Name-Last: Solarin
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Chris Stewart
Author-X-Name-First: Chris
Author-X-Name-Last: Stewart
Title: Is the consumption-income ratio stationary in African countries? Evidence from new time series tests that allow for structural breaks
Abstract:
This article examines whether the consumption-income ratio is stationary in 50 African countries. We use the residual augmented least squares (RALS-LM) unit root test that allows for structural breaks. The empirical evidence shows that the consumption income ratio is stationary around structural breaks in most (44 out of 50) African countries. This is consistent with the predictions of most economic theories. The general finding of mean reversion implies that (policy) shocks are likely to have only temporary effects on the consumption-income ratio in most African countries .
Journal: Applied Economics
Pages: 4122-4136
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441515
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441515
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Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4122-4136
Template-Type: ReDIF-Article 1.0
Author-Name: Barry Watson
Author-X-Name-First: Barry
Author-X-Name-Last: Watson
Author-Name: Lars Osberg
Author-X-Name-First: Lars
Author-X-Name-Last: Osberg
Title: Job insecurity and mental health in Canada
Abstract:
Using six cycles of Canada’s longitudinal National Population Health Survey data (2000–2001 to 2010–2011), this article examines the relationship between job insecurity and mental health. Job insecurity is evaluated in both subjective (perception of job insecurity) and objective (probability of joblessness) terms while mental health is measured using a standardized psychological distress index. Applying a person-specific fixed-effects estimator, results indicate that for males and females age 25–64, job insecurity, regardless of how it is measured, is associated with an increase in psychological distress. Results regarding unemployment are not as conclusive, suggesting that it is not so much the actual occurrence of job loss but the threat of unemployment that is associated with higher psychological distress. Estimates of the relationship between job insecurity and psychological distress using pooled ordinary least squares are much larger, implying that much of the psychological distress/job insecurity correlation may be due to unobservable fixed characteristics. All results are robust to the inclusion and exclusion of a host of other potential determinants including income-related variables, education, and various health measures.
Journal: Applied Economics
Pages: 4137-4152
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441516
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441516
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Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4137-4152
Template-Type: ReDIF-Article 1.0
Author-Name: Etienne Farvaque
Author-X-Name-First: Etienne
Author-X-Name-Last: Farvaque
Author-Name: Florence Huart
Author-X-Name-First: Florence
Author-X-Name-Last: Huart
Title: Drowned by numbers? Stabilization properties of an EU-wide unemployment insurance system
Abstract:
The recent crisis has given rise to proposals for the creation of a European unemployment insurance system. We simulate an EU-wide mechanism under various scenarios, varying methods of financing (common or country-specific contribution rates) and triggers for pay-outs (all time or contingent clauses). We analyse the impact of the system using different measures of stabilization under different fiscal multipliers. A system operating during bad times (periods where the increase in unemployment is large) would reduce GDP growth variability but also growth correlation among member countries. Hence, there is a trade-off between stabilization and synchronization of national business cycles.
Journal: Applied Economics
Pages: 4153-4181
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441517
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441517
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Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4153-4181
Template-Type: ReDIF-Article 1.0
Author-Name: Youba Ndiaye
Author-X-Name-First: Youba
Author-X-Name-Last: Ndiaye
Title: Road tax interactions among local governments: a spatial panel data analysis of the French case over the period 1984–2000
Abstract:
This article contributes to the literature on local tax interactions. Its novelty lies in its focus on the interactions of local governments via an indirect local tax on vehicles such as the road tax sticker and its analysis of interactions between direct and indirect local taxation. The main purpose of this article is to provide an empirical analysis of the reaction of road tax policy in a given French ‘department’ to changes in road tax policy in other ‘departments’. The analysis uses a novel panel data set covering the 96 French metropolitan ‘departments’ for the period from 1984 to 2000. First, the results confirm the presence of significant spatial interactions between French ‘departments’ due to the road tax sticker. Second, the estimation results also show that the business tax rate and/or the property tax rate on developed land are complements to the road tax sticker, whereas the residence tax rate and/or the property tax rate on undeveloped land are substitutes to the road tax instrument. Finally, I find that ‘departments’ with a larger, younger and older population set higher rates for the road tax sticker. The results are robust regarding alternative weight matrices.
Journal: Applied Economics
Pages: 4182-4196
Issue: 38
Volume: 50
Year: 2018
Month: 8
X-DOI: 10.1080/00036846.2018.1441518
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1441518
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Handle: RePEc:taf:applec:v:50:y:2018:i:38:p:4182-4196
Template-Type: ReDIF-Article 1.0
Author-Name: Jiawen Luo
Author-X-Name-First: Jiawen
Author-X-Name-Last: Luo
Author-Name: Langnan Chen
Author-X-Name-First: Langnan
Author-X-Name-Last: Chen
Author-Name: Weiguo Zhang
Author-X-Name-First: Weiguo
Author-X-Name-Last: Zhang
Title: Covariance breakdowns and connectedness of crude oil futures markets with non-synchronous data
Abstract:
This article identifies the breakdowns in the covariance of three benchmark crude oil futures markets (WTI, Brent and Dubai) and investigates the changes of market connectedness across the breakdown periods. As the crude oil futures are traded in different regions, this article eliminates the non-synchronous trading data by employing the Vector Moving Average structure and the Bayesian data augmentation approach, which keeps the integrity of original data without changing its properties. The results show that there are significant breaks in the covariance structure of crude oil futures markets. The breakdown periods are consistent with the periods when the market volatilities are at high level and the returns are volatile. The changes of market connectedness are independent of the covariance states, which supports the globalization hypothesis for the crude oil market. The results also suggest that there is more information flow out of the WTI than to the WTI during the sample period, particularly during the breakdown periods in 2008–2009.
Journal: Applied Economics
Pages: 422-443
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1489510
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489510
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Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:422-443
Template-Type: ReDIF-Article 1.0
Author-Name: Piyadasa Edirisuriya
Author-X-Name-First: Piyadasa
Author-X-Name-Last: Edirisuriya
Author-Name: Abeyratna Gunasekarage
Author-X-Name-First: Abeyratna
Author-X-Name-Last: Gunasekarage
Author-Name: Shrimal Perera
Author-X-Name-First: Shrimal
Author-X-Name-Last: Perera
Title: Product diversification and bank risk: evidence from South Asian banking institutions
Abstract:
We investigate whether the product diversification activities of South Asian banking institutions have led to an increase or decrease in their solvency and profit risks. Using the data of five countries – India, Bangladesh, Nepal, Pakistan and Sri Lanka – for the period 2000–2016, we analyse the effect of both income and assets diversification activities on the Z-score and SDs of ROA (Return on Assets) and ROE Return on Equity). Among income diversification activities, securities trading income has a significant positive influence on bank risk while other categories have no influence. With respect to assets diversification, non-interest-bearing assets and loans given to government were found to have a significant positive influence on bank risk, while mortgage loans and non-classified loans have opposite influences. However, the impacts of securities trading income and loans given to the government are mainly confined to private sector banks and state-owned banks, respectively. We also uncover some country-specific diversification influences on the above relationships.
Journal: Applied Economics
Pages: 444-464
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1489516
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489516
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Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:444-464
Template-Type: ReDIF-Article 1.0
Author-Name: Tobias Haepp
Author-X-Name-First: Tobias
Author-X-Name-Last: Haepp
Author-Name: Mei Hsu
Author-X-Name-First: Mei
Author-X-Name-Last: Hsu
Title: Educational inequalities between children of marriage migrants and those of local-born parents – quantile regression results from Taiwan
Abstract:
This article studies educational inequalities between children of marriage migrants and those of local-born parents using student test scores from Taiwan. We first find an average raw score gap of 9.5% for children of foreign parents. We then employ quantile regression methodology and find that, after introducing our extensive list of covariates, score gaps vanish for children with a mother from mainland China in all quantiles and for children with a Southeast Asian mother in the highest quantiles. In contrast, we identify large residual score gaps for children with a parent from a culturally more distant country in all quantiles. Different from previous studies which found the largest impact for language usage and parent education, we find that the physical home environment has the highest explanatory power in our analysis.
Journal: Applied Economics
Pages: 465-487
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1490001
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1490001
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Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:465-487
Template-Type: ReDIF-Article 1.0
Author-Name: Chao Li
Author-X-Name-First: Chao
Author-X-Name-Last: Li
Author-Name: Zongyi Hu
Author-X-Name-First: Zongyi
Author-X-Name-Last: Hu
Author-Name: Liwei Tang
Author-X-Name-First: Liwei
Author-X-Name-Last: Tang
Title: Re-examining the Chinese A-share herding behaviour with a Fama-French augmented seven-factor model
Abstract:
In view of the contradicting results in existing research, this article proposes a new weighted cross-sectional variance (WCSV) model to re-examine the level of herding behaviour in the Chinese A-share market. Motivated by the original WCSV model, we utilize a Fama-French augmented seven-factor model as the underlying Arbitrage Pricing Theory model, which introduces the trading volume and turnover rate factors to the Fama-French five-factor model. The regression results show the superiority of our new model compared to the WCSV model based on Fama-French three- and five-factor models, which implies that the empirical findings of herding with our WCSV model are more reliable in relative terms. In the empirical aspect, in addition to testing the herding level yearly and integrally, to provide further insight on the relationship between market stress and herding, we apply our model to the Chinese A-share herding behaviour within each of three well-known crisis periods. In addition, we also split the sub-samples into pre-crisis and post-crisis periods to detect the existence of asymmetric herding behaviour for different market directions. Our findings suggest that Chinese A-share herding behaviour is more prevalent during large market turmoil, especially under condition of down market.
Journal: Applied Economics
Pages: 488-508
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494809
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494809
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Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:488-508
Template-Type: ReDIF-Article 1.0
Author-Name: Abhilash S. Nair
Author-X-Name-First: Abhilash S.
Author-X-Name-Last: Nair
Author-Name: R Vinod
Author-X-Name-First: R
Author-X-Name-Last: Vinod
Title: Determinants of the allocative, cost and scope efficiencies of Indian banks
Abstract:
This study aims to investigate the impact of competition on determinants of allocative, scope and cost efficiencies of Indian scheduled commercial banks (SCBs). Specifically, the study, analyzes the impact of the second round of licensing on the efficiency of Indian SCBs. This is the first paper to measure scope efficiency of Indian banks and analyze its determinants. A two-stage analysis is performed on a balanced panel dataset of Indian SCBs for the period 1999–2016. In the first stage, the allocative, cost and scope efficiencies for each bank are estimated following the data envelopment analysis approach. In the second stage, internal determinants of the stated efficiency measures are estimated following the system of the generalized method of moments approach. The findings suggest that competition has not resulted in enhancing the efficiency of Indian SCBs. Among factors that can influence efficiency, it is seen that size does matter. Larger banks can enhance the efficiency of SCBs. It is also seen that having more foreign banks improves the overall efficiency of SCBs. However, before embarking on further rounds of licensing, the study posits that market-driven correction to succeed, it is imperative to address sunspots in the form of investor or borrower repression.
Journal: Applied Economics
Pages: 509-527
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494815
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494815
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Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:509-527
Template-Type: ReDIF-Article 1.0
Author-Name: Tong Qu
Author-X-Name-First: Tong
Author-X-Name-Last: Qu
Author-Name: Richard Harris
Author-X-Name-First: Richard
Author-X-Name-Last: Harris
Title: Does support from government help firms survive? Evidence on financial and political assistance in China, 1998–2007
Abstract:
Using the National Bureau of Statistics data set over the period 1998–2007, this article examines the dual roles of financial assistance and strong political links on firm survival in China by applying a semi-parametric duration model. We find that generally either financial assistance or strong political links had a positive effect on the likelihood of firm survival. Furthermore, if firms received both types of support from government, their survival rate was around two times as high compared to only receiving a single support. The likelihood of survival depended on the amount of assistance a firm received. We also find firm ownership impacts on its survival pattern. Lastly, China joining the World Trade Organisation (WTO) coincided with (cet. par.) higher firm failure, especially with regard to state-owned firms; however, this period also saw the authorities targeting political and financial help on the ‘better’ firms (especially SOEs) with characteristics likely to increase their chance of survival.
Journal: Applied Economics
Pages: 528-541
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1494816
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1494816
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Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:528-541
Template-Type: ReDIF-Article 1.0
Author-Name: Claude Diebolt
Author-X-Name-First: Claude
Author-X-Name-Last: Diebolt
Author-Name: Ralph Hippe
Author-X-Name-First: Ralph
Author-X-Name-Last: Hippe
Title: The long-run impact of human capital on innovation and economic development in the regions of Europe
Abstract:
Human capital is supposed to be an important factor for innovation and economic development. However, the long-run impact of human capital on current innovation and economic development is still a black box, in particular at the regional level. Therefore, this paper makes the link between the past and the present. Using a large new dataset on regional human capital and other factors in the 19th and 20th century, we find that past regional human capital is a key factor explaining current regional disparities in innovation and economic development.
Journal: Applied Economics
Pages: 542-563
Issue: 5
Volume: 51
Year: 2019
Month: 1
X-DOI: 10.1080/00036846.2018.1495820
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1495820
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Handle: RePEc:taf:applec:v:51:y:2019:i:5:p:542-563
Template-Type: ReDIF-Article 1.0
Author-Name: Massimiliano Caporin
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Caporin
Author-Name: Michele Costola
Author-X-Name-First: Michele
Author-X-Name-Last: Costola
Title: Asymmetry and leverage in GARCH models: a News Impact Curve perspective
Abstract:
Models for conditional heteroskedasticity belonging to the GARCH class are now common tools in many economics and finance applications. Among the many possible competing univariate GARCH models, one of the most interesting groups allows for the presence of the so-called asymmetry or leverage effect. In our view, asymmetry and leverage are two distinct phenomena, both inspired by the seminal work of Black in 1976. We propose definitions of leverage and asymmetry that build on the News Impact Curve, allowing to easily and coherently verify if they are both present. We show that several GARCH models are asymmetric but none is allowing for a proper leverage effect. Finally, we extend the leverage definition to a local leverage effect and show that the AGARCH model is coherent with the presence of local leverage. An empirical analysis completes the paper.
Journal: Applied Economics
Pages: 3345-3364
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578853
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578853
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Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3345-3364
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Abera Gelan
Author-X-Name-First: Abera
Author-X-Name-Last: Gelan
Title: Asymmetric effects of exchange rate changes on the demand for money in Africa
Abstract:
In order to account for currency substitution, the exchange rate is included in the demand for money. More recent studies have demonstrated that exchange rate changes could have asymmetric effects on the demand for money or domestic currency. In this paper, we consider the experiences of 18 African countries and show that in most countries, indeed exchange rate changes have short-run asymmetric effects on the demand for money. However, short-run effects translate to long-run asymmetric effects only in a limited number of African countries.
Journal: Applied Economics
Pages: 3365-3375
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578854
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578854
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Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3365-3375
Template-Type: ReDIF-Article 1.0
Author-Name: Suduan Chen
Author-X-Name-First: Suduan
Author-X-Name-Last: Chen
Title: An effective going concern prediction model for the sustainability of enterprises and capital market development
Abstract:
The purpose of this study is to construct a two-stage effective and innovative going concern prediction model to predict going concern doubt for the sustainability of enterprises and capital market development. Samples of this study are the companies listed on the Taiwan Stock Exchange or the Taipei Exchange, totalling 196 companies and including 49 companies with going concern doubt and 147 normal companies (with no going concern doubt). The data are taken from the Taiwan Economic Journal (TEJ) and the Market Observation Post System during the period from 2001 to 2016 (totalling 16 years). This study adopts a two-stage way to construct the going concern prediction models. In Stage I, the traditional statistical method of stepwise regression (SR) and the data mining technique artificial neural network (ANN) are applied to select the important variables. In Stage II, two decision tree algorithms (data mining techniques): classification and regression tree (CART) and C5.0 are used to establish the prediction models. The results show that the SR + CART model has the highest going concern prediction accuracy, with an overall accuracy of 87.42%.
Journal: Applied Economics
Pages: 3376-3388
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578855
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578855
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Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3376-3388
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Acedański
Author-X-Name-First: Jan
Author-X-Name-Last: Acedański
Author-Name: Jacek Pietrucha
Author-X-Name-First: Jacek
Author-X-Name-Last: Pietrucha
Title: Level and dynamics of financial depth: consequences for volatility of GDP
Abstract:
The existing literature documents positive but potentially non-linear relationship between financial depth measured as private credit to GDP ratio and volatility of GDP. In this paper, we extend the analysis by considering also the role of financial depth dynamics. We use dynamic spatial panel models to address the issue of cross-sectional dependence of errors obtained from the standard dynamic panel models. We confirm the non-linear impact of the financial depth level but also find that higher growth rates of financial depth are significantly associated with higher volatility of output. The role of the latter factor is considerably more important in terms of explained variance compared to the impact of the private credit level. These results are robust to changes in the sample range, specification of the model, and measurement of the key variables. We also document considerable differences between the estimates obtained from the standard GMM and the spatial models.
Journal: Applied Economics
Pages: 3389-3400
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1578857
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1578857
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Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3389-3400
Template-Type: ReDIF-Article 1.0
Author-Name: Luciana D. Costa
Author-X-Name-First: Luciana D.
Author-X-Name-Last: Costa
Author-Name: Teresa D. Harrison
Author-X-Name-First: Teresa D.
Author-X-Name-Last: Harrison
Title: Hospital competition, spillovers and provision of uncompensated care
Abstract:
Using data for California from 2005 until 2010, we investigate to what extent market competition and the presence of non-profits in the area may play a role in equilibrium uncompensated care (UC) levels, allowing those effects to differ according to the hospital’s ownership type. Previous studies have not explored the potential spillover effects from non-profit hospitals into the hospital decision of UC provision. We find evidence that regions with more non-profits experienced larger increases in UC levels, and even more in less concentrated markets. Our results also indicate that UC provision by for-profit hospitals decreases the larger the presence of non-profits in the region, and this effect is magnified when competition is more intense. We, therefore, find no positive spillover effects of non-profits into the hospital decision of UC provision, which may help us to understand the recent trends in UC levels.
Journal: Applied Economics
Pages: 3401-3412
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581905
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581905
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Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3401-3412
Template-Type: ReDIF-Article 1.0
Author-Name: Dong Hee Suh
Author-X-Name-First: Dong Hee
Author-X-Name-Last: Suh
Title: Interfuel substitution effects of biofuel use on carbon dioxide emissions: evidence from the transportation sector
Abstract:
This study examines the interfuel substitution effects of biofuel use on carbon dioxide emissions in the U.S. transportation sector. First, the dynamic linear logit model is used to examine substitution possibilities between biofuels and non-biofuels. The results reveal that petroleum demand is the most inelastic with respect to changes in petroleum prices since the transportation sector depends heavily on the use of petroleum. In addition, ethanol serves as a substitute for petroleum, showing that the use of ethanol can reduce the dependence on petroleum when petroleum prices increase. The results also indicate that ethanol is a complement for natural gas, while natural gas is a substitute for petroleum. Second, the coefficients for carbon dioxide emissions are used to compute the potential amount of carbon dioxide associated with interfuel substitution. The results represent that price-induced interfuel substitution is a critical factor to predict biofuel-related carbon dioxide emissions.
Journal: Applied Economics
Pages: 3413-3422
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581906
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581906
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Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3413-3422
Template-Type: ReDIF-Article 1.0
Author-Name: Pei-Fen Chen
Author-X-Name-First: Pei-Fen
Author-X-Name-Last: Chen
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Jhih-Hong Zeng
Author-X-Name-First: Jhih-Hong
Author-X-Name-Last: Zeng
Title: Economic policy uncertainty and firm investment: evidence from the U.S. market
Abstract:
This paper examines the impact of economic policy uncertainty on firm-level capital investment, by not only delving into the long-term investment-uncertainty relation like previous studies, but also analyzing the short-term investment-uncertainty relation for the U.S. market. The empirical investigations show that firms decrease short-term, long-term, and total firm investments when encountering higher economic policy uncertainties. The research also explores the non-linear investment-uncertainty relation based on various theories. Our findings present a U-shaped relationship between short-term, long-term, and total investments and uncertainties. Policy implications are provided from our empirical results.
Journal: Applied Economics
Pages: 3423-3435
Issue: 31
Volume: 51
Year: 2019
Month: 7
X-DOI: 10.1080/00036846.2019.1581909
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1581909
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Handle: RePEc:taf:applec:v:51:y:2019:i:31:p:3423-3435
Template-Type: ReDIF-Article 1.0
Author-Name: Aleš Kocourek
Author-X-Name-First: Aleš
Author-X-Name-Last: Kocourek
Author-Name: Iva Nedomlelová
Author-X-Name-First: Iva
Author-X-Name-Last: Nedomlelová
Title: Three levels of education and the economic growth
Abstract:
The aim of this article is to solve the question how the three main stages of education contribute to the labour productivity growth in selected 125 countries in the period 1999–2014. The model is based on the neoclassical production function enhanced with human capital. The authors draw on the Penn World Tables 9.0 and UNESCO databases. The key benefit of this article is that human capital is characterized according to the returns to education from average number of years of formal schooling at the primary, secondary and tertiary level. Based on the panel data analysis, the contributions of capital and of the three levels of education to the growth of labour productivity are estimated. At the same time, the model allows to estimate the contribution of total factor productivity. The results of the analysis show that tertiary education has the strongest impact on labour productivity across the considered economies. At the same time, the breakdown of aggregate human capital by level of education leads to better clarification of the effects of human capital and physical capital on labour productivity. The conclusions also indicate a tendency towards rising returns to scale induced by the secondary and tertiary education.
Journal: Applied Economics
Pages: 2103-2116
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1388910
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1388910
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Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2103-2116
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Borghesi
Author-X-Name-First: Richard
Author-X-Name-Last: Borghesi
Title: Employee political affiliation as a driver of corporate social responsibility intensity
Abstract:
This article explores the connection between corporate social responsibility (CSR) intensity and the political affiliation of elite management and lower-level personnel and offers evidence that CSR initiatives are frequently driven from the bottom-up by employees actively expressing their sociopolitical views. While directors and CEOs play an important role within certain CSR dimensions, results suggest that employees are significantly more influential overall. A one-standard-deviation shift to the political left for directors, CEOs and elite executives yields gains in CSR of 5%, 9% and 3%, respectively, while a one-standard-deviation left-shift for employees produces a 33% increase. Findings may help to explain why similar firms engaging in comparable social initiatives can experience heterogeneous returns to CSR outlays and suggest that a corporate culture approach may be warranted in future studies.
Journal: Applied Economics
Pages: 2117-2132
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1388911
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1388911
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Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2117-2132
Template-Type: ReDIF-Article 1.0
Author-Name: Md Zakir Hossain
Author-X-Name-First: Md Zakir
Author-X-Name-Last: Hossain
Author-Name: Md Atiqur Rahman Khan
Author-X-Name-First: Md Atiqur Rahman
Author-X-Name-Last: Khan
Author-Name: M. Shibley Sadique
Author-X-Name-First: M. Shibley
Author-X-Name-Last: Sadique
Title: Basel III and perceived resilience of banks in the BRICS economies
Abstract:
This study investigates how the additional capital and liquidity requirements of Basel III would increase the resilience of banks. In particular, using panel data from 2007 to 2014, we examine the resilience of banks in the BRICS economies. Our results suggest that a 10% increase in capital adequacy ratio (CAR), Tier 1 capital ratio (TRA), and leverage ratio (LEV), the resilience (as measured by Z-Score of banks) increases by about 2.18, 0.89 and 1.31%, respectively. Similarly, for a 100% increase in liquidity coverage ratio (LCR), the resilience of banks increases by 0.51%, 1.10% and 1.19%, respectively, in the models associated with CAR, TRA, and LEV. Hence, our findings suggest that the CAR is robust to increase the resilience of banks. Our study also reveals that the LCR and LEV are the most effective to increase the resilience of banks if implemented simultaneously. We also find that the stage of economic development does not matter in formulating policies for the BRICS economies, and finally, we provide empirical evidence that economy-wide risk, such as a financial crisis, does not affect the resilience of banks and it influences the resilience of banks in the BRICS economies in the same way before and after the crisis.
Journal: Applied Economics
Pages: 2133-2146
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1391999
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1391999
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Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2133-2146
Template-Type: ReDIF-Article 1.0
Author-Name: Patricia Moreno
Author-X-Name-First: Patricia
Author-X-Name-Last: Moreno
Author-Name: Juan Rodriguez-Poo
Author-X-Name-First: Juan
Author-X-Name-Last: Rodriguez-Poo
Author-Name: David Cantarero
Author-X-Name-First: David
Author-X-Name-Last: Cantarero
Title: A new approach to understanding labour supply of disabled people
Abstract:
The main interest of this article is to propose an individual utility maximization model to explain the low participation of disabled people. We account for heterogeneity of preferences and furthermore time of self-caring for disabled individuals is considered as an argument in the utility function. The hours of work decided by disabled individuals are neither homogeneous (they depend on unknown characteristics) nor continuous (discrete choice sets). We use data of 4790 households from the Spanish Survey of Disability, Personal Autonomy and Dependency and find association between time of informal care and labour participation and, consequently, the choice between jobs.
Journal: Applied Economics
Pages: 2147-2155
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392000
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392000
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Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2147-2155
Template-Type: ReDIF-Article 1.0
Author-Name: Santo Milasi
Author-X-Name-First: Santo
Author-X-Name-Last: Milasi
Author-Name: Robert J. Waldmann
Author-X-Name-First: Robert J.
Author-X-Name-Last: Waldmann
Title: Top marginal taxation and economic growth
Abstract:
The article explores the relationship between top marginal tax rates on personal income and economic growth. Using a data set of consistently measured top marginal tax rates for a panel of 18 OECD countries over the period 1965–2009, this article finds evidence in favour of a quadratic top tax–growth relationship. This represents the first reported evidence of a nonmonotonic significant relationship between top marginal income tax rates and economic growth. The point estimates of the regressions suggest that the marginal effect of higher top tax rates becomes negative above a growth-maximizing tax rate in the order of 60%. As top marginal tax rates observed after 1980 are below the estimated growth-maximizing level in most of the countries considered, a positive linear relationship between top marginal tax rates and GDP growth is found over the sub-period 1980–2009. Overall, results show that raising top marginal tax rates which are below their growth maximizing has the largest positive impact on growth when the related additional revenues are used to finance productive public expenditure, reduce budget deficits or reduce some other form of distortionary taxation.
Journal: Applied Economics
Pages: 2156-2170
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392001
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392001
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Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2156-2170
Template-Type: ReDIF-Article 1.0
Author-Name: Jerome Geyer-Klingeberg
Author-X-Name-First: Jerome
Author-X-Name-Last: Geyer-Klingeberg
Author-Name: Markus Hang
Author-X-Name-First: Markus
Author-X-Name-Last: Hang
Author-Name: Matthias Walter
Author-X-Name-First: Matthias
Author-X-Name-Last: Walter
Author-Name: Andreas Rathgeber
Author-X-Name-First: Andreas
Author-X-Name-Last: Rathgeber
Title: Do stock markets react to soccer games? A meta-regression analysis
Abstract:
This study applies meta-regression analysis to aggregate a sample of 1126 empirical estimates of the stock market reaction to soccer matches collected from 37 primary studies. Our results indicate that winning a match is not associated with significant return effects for both national teams and individual clubs. In the case of lost matches, we find strong evidence for publication bias, i.e. negative returns are systematically overrepresented causing a biased picture of the true soccer match effect. After correcting for this bias, the mean return after losses by national teams becomes statistically insignificant and accounts for only $$ - 5$$−5
basis points. In the case of individual clubs, the corrected impact of a loss is a significant $$ - 39$$−39
basis points effect. In a further analysis, we identify various aspects of study design like regional differences, time period under examination and the design of empirical analysis to be responsible for the wide variation in previous study outcomes. Overall, our findings provide evidence against the hypothesis that stock markets are driven by sports sentiment in the case of national teams. Due to the existence of strong asymmetry in the returns after wins and losses of individual clubs, behavioural explanations cannot be fully ruled out.
Journal: Applied Economics
Pages: 2171-2189
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392002
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392002
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Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2171-2189
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Beatton
Author-X-Name-First: Tony
Author-X-Name-Last: Beatton
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: Volunteering and life or financial shocks: does income and wealth matter?
Abstract:
Volunteering is a dominant social force that signals a healthy state. However, although the literature on volunteering is extensive, knowledge on how life’s discontinuities (life and financial shocks) affect volunteering is limited because most studies work with static (cross-sectional) data. To reduce this shortcoming, we use longitudinal data from Australia (HILDA) that track the same individuals over time to assess how individuals from different income and wealth groups respond to life and financial shocks with respect to volunteering. Although both income and wealth can act as buffers against life shocks by providing stability and reducing vulnerability – which decreases the need to actually change behaviour patterns – we observe more heterogeneity than expected and also stickiness at the lowest income levels. Response delays in post-shock volunteering also suggest that volunteering habits may be driven and influenced by strong commitment and motivation that are not shattered by life or financial shocks. In fact, the amount of time spent volunteering tends to increase after negative income shocks and decrease after positive income shocks.
Journal: Applied Economics
Pages: 2190-2209
Issue: 19
Volume: 50
Year: 2018
Month: 4
X-DOI: 10.1080/00036846.2017.1392003
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1392003
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Handle: RePEc:taf:applec:v:50:y:2018:i:19:p:2190-2209
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Hrushikesh Mallick
Author-X-Name-First: Hrushikesh
Author-X-Name-Last: Mallick
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: Is globalization detrimental to financial development? Further evidence from a very large emerging economy with significant orientation towards policies
Abstract:
This study attempts to explore the relationship between globalization and financial development by endogenizing economic growth, population density, inflation and institutional quality for India during the period from 1971–2013. Using the more conclusivecombined cointegration method, the study provides evidence of cointegration among these variables. The long-run and short-run estimates from the ARDL model and causality tests, respectively, suggest that globalization in its all forms (political, social and economic) and its overall measure as well as inflation are detrimental to financial development, while economic growth and population density both promote financial development. Furthermore, the results also point out that institutional quality is not conducive to financial development in India, and there exists a feedback effect between financial development and inflation. Moreover, financial development is influenced by economic growth, institutional quality and population density.
Journal: Applied Economics
Pages: 574-595
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1324615
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1324615
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Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:574-595
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Stafylas
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Stafylas
Author-Name: Keith Anderson
Author-X-Name-First: Keith
Author-X-Name-Last: Anderson
Author-Name: Moshfique Uddin
Author-X-Name-First: Moshfique
Author-X-Name-Last: Uddin
Title: Hedge fund index-engineering methodologies: a comparison and demonstration
Abstract:
We examine hedge fund (HF) index construction methodologies, by describing and analysing case studies from two well-known database vendors and evaluating them using numerical examples on the same dataset. Despite the fact that they follow a similar due diligence process, there are great differences in the index engineering practices arising from different quantitative techniques, even for indices in the same HF category. However, those quantitative techniques provide similar results. The differences are rather due to the use of different HF universes and different inclusion criteria. This article is the first to use actual numerical case studies to illustrate and compare how HF index engineering works. Having read it, the reader will have a good understanding of how HF indices are formed.
Journal: Applied Economics
Pages: 596-612
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1332746
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332746
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Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:596-612
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Ana Maria Bandeira
Author-X-Name-First: Ana Maria
Author-X-Name-Last: Bandeira
Author-Name: Manuela Magalhães
Author-X-Name-First: Manuela
Author-X-Name-Last: Magalhães
Title: Labour-market institutions, (un)employment, wages, and growth: theory and data
Abstract:
We analyse the implications of labour-market institutions on wage inequality in favour of skilled labour, on relative unemployment of unskilled labour, and on the economic growth rate in two clusters resulting from 27 OECD countries: Cluster 1, closely related with the Anglo-Saxon model, and Cluster 2, dominated by the Continental-European model. By linking the unskilled wage to the skilled one in Cluster 2, due to the indexation of social benefits to per-capita income, we accommodate the observed paths of the three variables in both clusters between 1991 and 2008: Cluster 1 presents a higher wage inequality in favour of skilled labour, a lower unemployment of the unskilled labour, and a better economic growth rate.
Journal: Applied Economics
Pages: 613-633
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1332748
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332748
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Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:613-633
Template-Type: ReDIF-Article 1.0
Author-Name: Eléazar Zerbo
Author-X-Name-First: Eléazar
Author-X-Name-Last: Zerbo
Author-Name: Olivier Darné
Author-X-Name-First: Olivier
Author-X-Name-Last: Darné
Title: Unit root and trend breaks in per capita output: evidence from sub-Saharan African countries
Abstract:
This article examines the nonstationary properties of per capita real output in 28 sub-Saharan African (SSA) countries, covering the period 1960–2014. The sequential testing approach proposed by Kejriwal and Lopez (2013, Econometric Reviews 32(8), 892–927) is used to categorize SSA countries into growth shift, level shift and linear trend hypotheses based on the presence or not of breaks in slope and/or level of the trend function. The break dates are associated to major historical or economic events such as sociopolitical crisis, commodity price fluctuations on international market, the discovery and the exploitation of mineral deposits or unfavourable environmental and climatic conditions. The empirical evidences of appropriate unit root tests fail to reject the unit root hypothesis in all the countries, suggesting that a shock would have a permanent effect on growth process, and stabilization policies may be implemented in dealing with income fluctuations.
Journal: Applied Economics
Pages: 634-658
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1332752
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332752
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Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:634-658
Template-Type: ReDIF-Article 1.0
Author-Name: Lutz Bornmann
Author-X-Name-First: Lutz
Author-X-Name-Last: Bornmann
Author-Name: Alexander Butz
Author-X-Name-First: Alexander
Author-X-Name-Last: Butz
Author-Name: Klaus Wohlrabe
Author-X-Name-First: Klaus
Author-X-Name-Last: Wohlrabe
Title: What are the top five journals in economics? A new meta-ranking
Abstract:
We construct a meta-ranking of 277 economics journals based on 22 different rankings. The ranking incorporates bibliometric indicators from four different databases (Web of Science, Scopus, Google Scholar, and RePEc). We account for the different scaling of the bibliometric indicators by standardizing each ranking score. We run a principal component analysis to assign weights to each ranking. In our meta-ranking, the top five journals are given by: Quarterly Journal of Economics, Journal of Financial Economics, Journal of Economic Literature (JEL), Journal of Finance, and Econometrica. Additionally, leaving out the JEL as a survey journal and the finance journals in our top 10 list we confirm the perceived top five journals in the economics profession.
Journal: Applied Economics
Pages: 659-675
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1332753
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1332753
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Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:659-675
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Steffen Rapp
Author-X-Name-First: Marc Steffen
Author-X-Name-Last: Rapp
Author-Name: Iuliia A. Udoieva
Author-X-Name-First: Iuliia A.
Author-X-Name-Last: Udoieva
Title: What matters in the finance–growth nexus of advanced economies? Evidence from OECD countries
Abstract:
Over the last decades, a large strand of finance and growth literature has provided ample evidence on the importance of financial deepening for economic development. Yet, recently, the focus of public debate has shifted towards the role of the financial system structure, an area in which empirical research remains relatively sparse and exploratory in nature. With this article, we aim to contribute to that debate by analysing the role the financial system structure plays in economic growth and risk. Focusing on stock markets and studying OECD economies over 1994–2013, we find that, ceteris paribus, financial systems with relatively larger stock markets facilitate economic growth and dampen economic risk. Our findings remain robust under application of instrumental variable and system generalized method of moments estimators, as well as when we use an alternative definition of stock market development, estimate median regressions, examine relatively high-frequency annual data, control for systemic banking crises or apply quadratic specifications. We find no such effect for private bond markets or private credit volume. Overall, our results suggest that financial system structure matters for the economic development of advanced economies and highlight the importance of a debate about the optimal structure of an economy’s financial system.
Journal: Applied Economics
Pages: 676-690
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1337867
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1337867
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Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:676-690
Template-Type: ReDIF-Article 1.0
Author-Name: Yi Wu
Author-X-Name-First: Yi
Author-X-Name-Last: Wu
Author-Name: Yunong Li
Author-X-Name-First: Yunong
Author-X-Name-Last: Li
Title: Impact of government intervention in the housing market: evidence from the housing purchase restriction policy in China
Abstract:
In 2010, a housing purchase restriction policy was announced by China’s central government and implemented gradually by several prefecture governments. In this article, we empirically investigate this policy’s effect on the housing market. Using a difference-in-difference framework, we show that the housing purchase restriction policy reduces housing prices and transaction amounts but does not influence the housing investment or construction markets. Moreover, upstream industry suffers more than downstream industry. The results are robust to a battery of robustness checks. Heterogeneity exists across cities. We find that first- and second-tier cities as well as highly urbanized cities experience great declines in housing prices after the policy’s implementation, especially cites that had high housing prices in 2010 and cities with high real estate investment as a proportion of fixed asset investment. However, the housing policy is less effective in curbing speculative demand.
Journal: Applied Economics
Pages: 691-705
Issue: 6
Volume: 50
Year: 2018
Month: 2
X-DOI: 10.1080/00036846.2017.1340569
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1340569
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Handle: RePEc:taf:applec:v:50:y:2018:i:6:p:691-705
Template-Type: ReDIF-Article 1.0
Author-Name: Tara McIndoe-Calder
Author-X-Name-First: Tara
Author-X-Name-Last: McIndoe-Calder
Title: Hyperinflation in Zimbabwe: money demand, seigniorage and aid shocks
Abstract:
Zimbabwe experienced record hyperinflation of 80 billion per cent per month in 2008. This article uses new data from Zimbabwe to investigate money demand under hyperinflation using an autoregressive distributed-lag model for the period 1980–2008. The results produce plausible convergence rates and long-run elasticities, indicating that real-money balances are cointegrated with the inflation rate and signifying an equilibrium relationship between the two series. Evidence is also presented suggesting prices were driven by increases in the money supply rather than by changes in price setting behaviour. The article uses the estimated elasticity on the inflation variable to calculate the maximum level of seigniorage revenue that could be raised in the economy. Actual seigniorage levels increased dramatically after 2000, with inflation eventually exceeding the rate required to maximize this revenue stream. This is discussed in relation to international financing constraints and the collapse of the domestic tax base.
Journal: Applied Economics
Pages: 1659-1675
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1371840
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1371840
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Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1659-1675
Template-Type: ReDIF-Article 1.0
Author-Name: Nobuya Fukugawa
Author-X-Name-First: Nobuya
Author-X-Name-Last: Fukugawa
Title: The contingent effect of social capital on performance of professional athletes: life cycle stages and changes in regulation as moderators
Abstract:
Motorboat racing is a sport organized as public gambling in Japan. As well as physical strength and driving technique, skills to adjust equipment are critical for racers to win a race. Based on the contingency theory of social capital, this study analysed comprehensive panel data of motorboat racers and revealed that bonding and bridging social capital had different impacts on performance according to life cycle stages of racers and changes in regulation. First, bonding social capital has a positive impact on performance when racers are less experienced and most need psychological aid stemming from strong ties. Second, bridging social capital has a positive impact on performance when racers are more experienced and have accumulated absorptive capacity to learn efficiently from diverse sources of knowledge. Third, both bonding and bridging social capital lose their explanatory power after the changes in regulation that shifted ownership of propellers from racers to the authority, which could mitigate the significance of the formation of small groups among racers to share cost and knowledge regarding the improvement in propellers. Research and managerial implications of the findings are discussed.
Journal: Applied Economics
Pages: 1676-1693
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1371843
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1371843
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Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1676-1693
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Lábaj
Author-X-Name-First: Martin
Author-X-Name-Last: Lábaj
Author-Name: Karol Morvay
Author-X-Name-First: Karol
Author-X-Name-Last: Morvay
Author-Name: Peter Silanič
Author-X-Name-First: Peter
Author-X-Name-Last: Silanič
Author-Name: Christoph Weiss
Author-X-Name-First: Christoph
Author-X-Name-Last: Weiss
Author-Name: Biliana Yontcheva
Author-X-Name-First: Biliana
Author-X-Name-Last: Yontcheva
Title: Market structure and competition in transition: results from a spatial analysis
Abstract:
The present article provides first microlevel (indirect) empirical evidence on changes in entry barriers, the determinants of firm profitability as well as the nature of competition for a transition economy. We estimate size thresholds required to support different numbers of firms for several retail and professional service industries in a large number of geographic markets in Slovakia. The 3 time periods in the analysis (1995, 2001 and 2010) characterize different stages of the transition process. Specific emphasis is given to spatial spill-over effects between local markets. Estimation results obtained from a spatial ordered probit model suggest that entry barriers have declined considerably (except for restaurants) and that the intensity of competition has increased on average. We further find that demand spill-overs and/or the effects associated with a positive correlation in unobservable explanatory variables seem to outweigh negative spill-over effects caused by competitive forces between neighbouring cities and villages. The importance of these spatial spill-over effects differs across industries.
Journal: Applied Economics
Pages: 1694-1715
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374535
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374535
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Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1694-1715
Template-Type: ReDIF-Article 1.0
Author-Name: Gustavo Cabrera
Author-X-Name-First: Gustavo
Author-X-Name-Last: Cabrera
Author-Name: Semei Coronado
Author-X-Name-First: Semei
Author-X-Name-Last: Coronado
Author-Name: Omar Rojas
Author-X-Name-First: Omar
Author-X-Name-Last: Rojas
Author-Name: Rafael Romero-Meza
Author-X-Name-First: Rafael
Author-X-Name-Last: Romero-Meza
Title: A Bayesian approach to model changes in volatility in the Mexican stock exchange index
Abstract:
We model the changes in volatility in the Mexican Stock Exchange Index using a Bayesian approach. We study the time series with a wide set of models characterized by a Markov switching heterogeneity. The advantage of this approach is that it allows for a broader spectrum of possible models since the estimation of the moments of the parameters is done using the finite mixture distribution MCMC method, without relying on assumptions about large sampling and mathematical optimization. This is particularly relevant for emerging markets’ financial data because of its special characteristics, like being more susceptible to jumps and changes in volatility caused by exchange rate swings, financial crises and oil and commodity prices. For model comparison, we use the marginal likelihood approach and the bridge sampling technique. The best representation of the data is given by a switching model with three states rather than any other autoregressive linear or non-linear model. The periods of volatility found by the model coincide with different financial crisis. Whereas other studies of volatility for the same market impose the Markovian model that captures changes in volatility, we let our model to be defined in an endogenous way.
Journal: Applied Economics
Pages: 1716-1724
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374536
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374536
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Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1716-1724
Template-Type: ReDIF-Article 1.0
Author-Name: Neel Rao
Author-X-Name-First: Neel
Author-X-Name-Last: Rao
Author-Name: Twisha Chatterjee
Author-X-Name-First: Twisha
Author-X-Name-Last: Chatterjee
Title: Sibling gender and wage differences
Abstract:
Family influences on economic performance are investigated. In particular, sibship sex composition is related to hourly wages using data from the National Longitudinal Survey of Youth 1979. The wages of men are increasing in the proportion of siblings who are brothers, but the wages of women are insensitive to sibling gender. Nonwage outcomes are generally unaffected. Contrasts by age structure and demographic group are also presented. The analysis addresses econometric challenges like the endogeneity of fertility and selection into the workforce. In addition, mechanisms such as labour market interactions, human capital investment and role model effects are documented. A questionnaire on job search indicates a same-gender bias in the use of brothers and sisters in obtaining employment. Developmental and psychological assessments suggest that brothers may be associated with worse childhood home environments and more traditional family attitudes among women. The findings are policy relevant and contribute to an understanding of gender differences and earnings inequality.
Journal: Applied Economics
Pages: 1725-1745
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374537
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374537
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Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1725-1745
Template-Type: ReDIF-Article 1.0
Author-Name: Carsten Colombier
Author-X-Name-First: Carsten
Author-X-Name-Last: Colombier
Title: Population ageing in healthcare – a minor issue? Evidence from Switzerland
Abstract:
Our study shows that population ageing is a relevant determinant of healthcare expenditure (HCE). This conclusion supports the popular, but recently strongly contested, view that the coming population ageing will threaten the fiscal sustainability of health systems. We contribute to this debate, first by estimating the determinants of Swiss HCE with outlier-robust dynamic regressions, and second, by projecting Swiss HCE based on the estimates produced and new population scenarios. Medical advances and GDP per capita also play a decisive role. Governments can mitigate HCE growth by improving the health status of the population and by stimulating cost-effective and productive medical advances.
Journal: Applied Economics
Pages: 1746-1760
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374538
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374538
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Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1746-1760
Template-Type: ReDIF-Article 1.0
Author-Name: Wenchao Xu
Author-X-Name-First: Wenchao
Author-X-Name-Last: Xu
Author-Name: Scott E. Lowe
Author-X-Name-First: Scott E.
Author-X-Name-Last: Lowe
Title: An integrated analysis of the effects of local water institutions on irrigated agriculture outcomes in the arid western United States
Abstract:
Irrigation water rights and their governance structures constitute the foundation of local water institutions and profoundly influence water resource allocations, irrigated agricultural productivity and other consumptive water uses in the arid climate zones. This article explores the regional structures of irrigation water rights and water governance and empirically analyses the priority effects of water rights on irrigated agriculture at the micro level in Idaho, an arid and semiarid state in the western United States. We integrate a unique data set of water rights and water supplies with agricultural features and environmental characteristics into our empirical analysis. Results indicate that seniority in water resources allocation has significant, positive effects on both the average crop revenue and crop water use efficiency. Local water rights structures differ significantly in seniority and water sources from region to region. In response to the heterogeneity in local water rights structures, the aforementioned effect of allocative priority of water rights on average crop revenue per hectare and crop water productivity varies significantly, reaching up to an 87% difference, when measured across regions. In addition, the priority effects of water rights are nonlinear, which reflects the influence of historical patterns of water rights establishment on water institutions to date.
Journal: Applied Economics
Pages: 1761-1776
Issue: 15
Volume: 50
Year: 2018
Month: 3
X-DOI: 10.1080/00036846.2017.1374539
File-URL: http://hdl.handle.net/10.1080/00036846.2017.1374539
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Handle: RePEc:taf:applec:v:50:y:2018:i:15:p:1761-1776
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Thiem
Author-X-Name-First: Christopher
Author-X-Name-Last: Thiem
Title: Oil price uncertainty and the business cycle: Accounting for the influences of global supply and demand within a VAR GARCH-in-mean framework
Abstract:
This article reinvestigates the influence of oil price uncertainty on real economic activity in the United States using a four-variable VAR GARCH-in-mean asymmetric BEKK model. In contrast to previous studies in this area, the analysis focuses on business cycle fluctuations and we control for global supply and demand factors that might affect the real price of oil, its volatility as well as the US economy. We find that – even after accounting for these factors – oil price uncertainty still has a highly significant negative influence on the US business cycle. Our computations show that the effect is economically important during several periods, mostly after a significant variance shift in the mid-1980s. We simultaneously estimate the effect on the global business cycle but find that it is comparatively weak. Finally, significant spillover effects in the GARCH model suggest that oil price volatility is a gauge and channel of transmission of more general macroeconomic shocks and uncertainty. These linkages are particularly strong in case of unexpected bad news.
Journal: Applied Economics
Pages: 3735-3751
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436142
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436142
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3735-3751
Template-Type: ReDIF-Article 1.0
Author-Name: Joscha Beckmann
Author-X-Name-First: Joscha
Author-X-Name-Last: Beckmann
Author-Name: Keith Cuthbertson
Author-X-Name-First: Keith
Author-X-Name-Last: Cuthbertson
Title: Special issue of applied economics on ‘Finance and the real economy’
Journal: Applied Economics
Pages: 3645-3646
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436143
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436143
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3645-3646
Template-Type: ReDIF-Article 1.0
Author-Name: Alin Marius Andrieș
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieș
Author-Name: Bogdan Căpraru
Author-X-Name-First: Bogdan
Author-X-Name-Last: Căpraru
Author-Name: Simona Nistor
Author-X-Name-First: Simona
Author-X-Name-Last: Nistor
Title: Corporate governance and efficiency in banking: evidence from emerging economies
Abstract:
This article investigates the impact of corporate governance on bank efficiency across a sample of 139 commercial banks from 17 countries of Central and Eastern Europe during the period 2005–2012. Data on governance characteristics are hand-collected from banks’ reports. The empirical findings indicate that implementing rigorous corporate governance structures is associated with higher costs for banks and a lower level of efficiency. However, during the crisis, a tight governance mechanism significantly increases banks’ cost and technical efficiencies. We also show that prudent risk management is associated with both higher cost and technical efficiency for more capitalized banks, while rigid supervisory boards are linked with greater technical efficiency for more capitalized banks.
Journal: Applied Economics
Pages: 3812-3832
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436144
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436144
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3812-3832
Template-Type: ReDIF-Article 1.0
Author-Name: Fotini Economou
Author-X-Name-First: Fotini
Author-X-Name-Last: Economou
Author-Name: Christis Hassapis
Author-X-Name-First: Christis
Author-X-Name-Last: Hassapis
Author-Name: Nikolaos Philippas
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Philippas
Title: Investors’ fear and herding in the stock market
Abstract:
In this article, we examine herding in three developed stock markets testing for the impact of investors’ ‘fear’ on herding estimations. To this end, we employ daily data of all listed stocks from USA, UK and Germany from January 2004 to July 2014. We examine herd behaviour applying the cross-sectional dispersion approach. Moreover, we investigate the asymmetric herding behaviour under different market states and sub-periods. The stock markets under examination provide comparable implied volatility indices which are used as a proxy for fear. As a result, apart from the standard herding estimations within and across markets, we also augment the benchmark model with the fear indicator. Our empirical results document the statistically significant impact of fear on herding estimations. Moreover, there is evidence of cross market herding as well as evidence of herding in the UK during specific sub-periods.
Journal: Applied Economics
Pages: 3654-3663
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436145
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436145
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3654-3663
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Kühl
Author-X-Name-First: Michael
Author-X-Name-Last: Kühl
Title: Excess comovements between the euro/US dollar and pound sterling/US dollar exchange rates
Abstract:
The aim of this article is to discuss excess comovements of the euro/US dollar and pound sterling/US dollar exchange rates, i.e. we look for comovements of exchange rates which are stronger than implied by the fundamentals. The results of the empirical analysis provide evidence that excess comovements exist for the two exchange rates. A long-run analysis of correlations can verify that a link exists between the correlation dynamics of exchange rates, relative inflation rates, long-term interest rates, economic sentiments and money supply. We find that common movements of money supply, prices and economic sentiments each play a major role in comovements of the exchange rates. From the investigation of the two exchange rates, we conclude that macroeconomic fundamentals can account for the comovement but that common non-fundamental factors also have major significance for the exchange rates.
Journal: Applied Economics
Pages: 3664-3685
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436146
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436146
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3664-3685
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Ademmer
Author-X-Name-First: Martin
Author-X-Name-Last: Ademmer
Author-Name: Nils Jannsen
Author-X-Name-First: Nils
Author-X-Name-Last: Jannsen
Title: Post-crisis business investment in the euro area and the role of monetary policy
Abstract:
Business investment in the euro area strongly declined during the Global Financial Crisis and the Sovereign Debt Crisis. It has not yet rebounded to its pre-crisis trend despite the very expansionary monetary policy measures of the ECB. We analyse the sluggish recovery in business investment in the euro area and the role of monetary policy in three steps. We investigate the main factors that have impeded business investment since the Global Financial Crisis. We empirically analyse how business investment has developed compared to typical patterns during other financial crises. Based on these results, we then discuss how effective monetary policy has been in stimulating business investment since the Global Financial Crisis. We conclude that business investment in the euro area has developed broadly in line with typical post-crisis patterns. Monetary policy significantly contributed to stabilize business investment at the beginning of the crises. In the aftermath of the crises, however, there seems to be little scope for monetary policy to further stimulate investment.
Journal: Applied Economics
Pages: 3787-3797
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436147
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436147
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3787-3797
Template-Type: ReDIF-Article 1.0
Author-Name: Sunčica Vujić
Author-X-Name-First: Sunčica
Author-X-Name-Last: Vujić
Author-Name: Xiaoyu Zhang
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Zhang
Title: Does Twitter chatter matter? Online reviews and box office revenues
Abstract:
With a rapid rise of text-based social media and online Word-of-Mouth (WOM) activity, millions of people express their thoughts and opinions on a variety of topics. Considering that nowadays WOM is a most influential source of information when guiding consumers’ choice and purchase decisions, in this paper we look at the relationship between Twitter messages (tweets) and cinema box office revenues. Using static and dynamic panel data regression approaches, we show that the frequency, sentiment and timing of tweets posted about a film are correlated to different extent with the movie’s box office revenues, with negative tweets being particularly damaging to the box office revenues. From a managerial perspective, this is important to know, such that film production companies and distributors can adjust their strategy accordingly.
Journal: Applied Economics
Pages: 3702-3717
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436148
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436148
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3702-3717
Template-Type: ReDIF-Article 1.0
Author-Name: Simona Nistor
Author-X-Name-First: Simona
Author-X-Name-Last: Nistor
Author-Name: Valentina-Ioana Mera
Author-X-Name-First: Valentina-Ioana
Author-X-Name-Last: Mera
Author-Name: Monica Ioana Pop Silaghi
Author-X-Name-First: Monica Ioana
Author-X-Name-Last: Pop Silaghi
Title: Is education important in assessing the impact of institutions on economic growth in emerging economies?
Abstract:
In this article, we empirically revise the hypothesis that institutions cause economic growth for emerging countries starting from a theoretical model. Our sample consists of 21 countries covering different zones: European Emerging, Asia Pacific Emerging, Latin America, Middle-East and Africa while the status advanced versus secondary emerging countries based on FTSE (Financial Times Stock Exchange) classification is accounted for. The period analysed is 1995–2014. The methodology is based on System GMM estimator of Arellano-Bover and Blundell-Bond for dynamic panel data. Empirical findings suggest that only variables such as voice and accountability and government effectiveness have a significant positive impact on economic growth rates of the analysed countries. In the presence of control variables, i.e. trade and government final consumption, results are robust. Results remain robust for countries that have a high level of government expenditure on tertiary education which proves the role of education in assessing the impact of institutions on economic growth.
Journal: Applied Economics
Pages: 3840-3854
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436149
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436149
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3840-3854
Template-Type: ReDIF-Article 1.0
Author-Name: Anastassios A. Drakos
Author-X-Name-First: Anastassios A.
Author-X-Name-Last: Drakos
Author-Name: Georgios P. Kouretas
Author-X-Name-First: Georgios P.
Author-X-Name-Last: Kouretas
Author-Name: Prodromos Vlamis
Author-X-Name-First: Prodromos
Author-X-Name-Last: Vlamis
Title: Saving, investment and capital mobility in EU member countries: a panel data analysis of the Feldstein–Horioka puzzle
Abstract:
In this paper, we reexamine the long-standing and puzzling correlation between national saving and investment in 14 European Union (EU) countries. We employ a panel data set for the period 1970–2015 and we apply recently developed maximum likelihood panel cointegration methodologies. We find that there exists a long-run relationship between savings and investment for this panel of EU member countries, with the savings retention coefficient being low in magnitude but statistically different than zero. Therefore, we argue that there is weak evidence in favour of the Feldstein–Horioka puzzle and that the long-run international solvency condition is maintained in most of these countries. This evidence implies a moderate degree of capital mobility which is consistent with the macroeconomic experience of these countries during the period under investigation.
Journal: Applied Economics
Pages: 3798-3811
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436150
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436150
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3798-3811
Template-Type: ReDIF-Article 1.0
Author-Name: Pui Sun Tam
Author-X-Name-First: Pui Sun
Author-X-Name-Last: Tam
Title: Global trade flows and economic policy uncertainty
Abstract:
This article investigates the impacts of economic policy uncertainty (EPU) on global trade flows in gauging international trade developments. We employ a global vector autoregressive (GVAR) trade model, augmented with value-added bilateral trade linkages, that allows for quantifying the effects of economy-specific uncertainty shocks on exports and imports of individual economies. We find substantial spatial propagation in the temporal dynamics of international transmission of shocks amidst the manifestations of cross-border global value chains (GVCs) with China’s accession into the WTO. We provide evidence for the significance of EPU of China and the United States, particularly the latter, in influencing global trade flows. Our results show that while the US impacts can largely be attributed to its indirect trade linkages with other economies, the impacts of China can be relegated more to its direct GVC linkages. The findings have implications on trade protectionist inclinations of the current-term US government and the ongoing efforts of China’s policymakers in steering macroeconomic rebalancing for sustainable growth.
Journal: Applied Economics
Pages: 3718-3734
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436151
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436151
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3718-3734
Template-Type: ReDIF-Article 1.0
Author-Name: Ansgar Belke
Author-X-Name-First: Ansgar
Author-X-Name-Last: Belke
Author-Name: Irina Dubova
Author-X-Name-First: Irina
Author-X-Name-Last: Dubova
Author-Name: Thomas Osowski
Author-X-Name-First: Thomas
Author-X-Name-Last: Osowski
Title: Policy uncertainty and international financial markets: the case of Brexit
Abstract:
This study assesses the impact of the Brexit probability on both the UK and on international financial markets, for the first and the second statistical moments. As financial markets are by nature highly interlinked, one might expect that the uncertainty engendered by Brexit also has an impact on financial markets in several other countries. We first estimate the time-varying interactions between UK policy uncertainty, which to a large extent is attributed to uncertainty about Brexit and UK financial market volatilities. Second, we use two other measures of the perceived probability of Brexit before the referendum, namely daily data released by Betfair and results of polls published by Bloomberg. Based on these data sets, and using both panel and single-country SUR estimation methods, we analyse the Brexit effect on levels of stock returns, sovereign CDS, 10-year interest rates in 19 predominantly European countries, and those of the British pound and the euro. We show that Brexit-induced policy uncertainty will continue to cause instability in key financial markets and has the potential to damage the real economy in both the UK and other European countries. The main losers outside the UK are the ‘GIIPS’ economies: Greece, Ireland, Italy, Portugal and Spain.
Journal: Applied Economics
Pages: 3752-3770
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436152
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436152
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3752-3770
Template-Type: ReDIF-Article 1.0
Author-Name: Antonia Reinecke
Author-X-Name-First: Antonia
Author-X-Name-Last: Reinecke
Author-Name: Hans-Jörg Schmerer
Author-X-Name-First: Hans-Jörg
Author-X-Name-Last: Schmerer
Title: Redistribution, trade and corruption: an empirical assessment
Abstract:
This article explores the role of institutional quality in the trade and inequality nexus. Does corruption shape the relationship between trade and inequality through its impact on redistribution? Our answer to this question builds on the hypothesis that trade raises inequality and that governments may want to intervene through appropriate redistribution schemes that aim at taxing the gains from trade in a way that offsets the negative effects of trade on inequality. Moreover, we argue that this mechanism may be distorted by corruption and bad institutions in general. Quite to the contrary to common wisdom, we find that trade reduces inequality in countries with high institutional standards by means of a low level of corruption but increases inequality in countries with low levels of institutional quality.
Journal: Applied Economics
Pages: 3855-3869
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436153
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436153
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3855-3869
Template-Type: ReDIF-Article 1.0
Author-Name: Marco G. Ercolani
Author-X-Name-First: Marco G.
Author-X-Name-Last: Ercolani
Author-Name: William Pouliot
Author-X-Name-First: William
Author-X-Name-Last: Pouliot
Author-Name: Joanne S. Ercolani
Author-X-Name-First: Joanne S.
Author-X-Name-Last: Ercolani
Title: Luck versus skill over time: time-varying performance in the cross-section of mutual fund returns
Abstract:
Using returns histories spanning January 1984 to October 2014 of 5785 actively managed US closed-end equity mutual funds, we address the ‘thorny problems’ highlighted by Fama and French (The Journal of Finance, 2010, vol. 65, p. 1925) that arise due to their resampling procedure. This prevents them from capturing time variation in the parameters of equilibrium asset pricing models. These problems are addressed by combining innovative procedures which allow for testing of multiple break dates on fund-specific parameters along with cross-section bootstraps that remain valid in the presence of time-varying parameters. We find that substantial proportion – 8% – of the estimated versions of the asset pricing model have significant changes in their parameters. The effects of this time variation on the cross-section distribution of the risk-adjusted performance measure are significant and substantially increase centiles of the right tail of this distribution when compared to those produced without time-varying parameters. Our evidence regarding the lack of actively managed US equity mutual funds that generate excess returns is significantly weaker than those of Fama and French but our results do not overturn their pessimistic conclusion regarding the lack of skilled managers. We do find, unlike Fama and French, that managers generating negative returns are just unlucky but have no skill.
Journal: Applied Economics
Pages: 3686-3701
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436154
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436154
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3686-3701
Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Bampinas
Author-X-Name-First: Georgios
Author-X-Name-Last: Bampinas
Author-Name: Konstantinos Ladopoulos
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Ladopoulos
Author-Name: Theodore Panagiotidis
Author-X-Name-First: Theodore
Author-X-Name-Last: Panagiotidis
Title: A note on the estimated GARCH coefficients from the S&P1500 universe
Abstract:
We employ 1440 stocks listed in the S&P Composite 1500 Index of the NYSE. Three benchmark GARCH models are estimated for the returns of each individual stock under three alternative distributions (Normal, t and GED). We provide summary statistics for all the GARCH coefficients derived from 11,520 regressions. The EGARCH model with GED errors emerges as the preferred choice for the individual stocks in the S&P 1500 universe when non-negativity and stationarity constraints in the conditional variance are imposed. 57% of the constraint’s violations are taking place in the S&P small cap stocks.
Journal: Applied Economics
Pages: 3647-3653
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436155
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436155
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3647-3653
Template-Type: ReDIF-Article 1.0
Author-Name: Hanno Dihle
Author-X-Name-First: Hanno
Author-X-Name-Last: Dihle
Author-Name: Rafael Mentges
Author-X-Name-First: Rafael
Author-X-Name-Last: Mentges
Title: Real options or disaster risk? Distinguishing uncertainty effects on investment
Abstract:
Motivated by the fact that uncertainty shocks are a countercyclical phenomenon, this article takes a deeper look at the nature of uncertainty shocks in times of crisis and its effect on the real economy. We distinguish between volatility and disaster risk shocks and specify the consequences of these shock specifications on investment decisions. We first analyse the different impact of both shocks within a real options framework. Our theoretical results show that the effects of the two shocks are different, especially concerning disinvestment and the mid-term investment response. Second, we perform structural vector autoregression (SVAR) estimations on different country data sets. The SVAR estimations confirm our theoretical hypothesis: countries more prone to states of disaster do not show the usual real option pattern of investment to an uncertainty shock.
Journal: Applied Economics
Pages: 3771-3786
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436156
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436156
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3771-3786
Template-Type: ReDIF-Article 1.0
Author-Name: Dariya Mykhayliv
Author-X-Name-First: Dariya
Author-X-Name-Last: Mykhayliv
Author-Name: Klaus G Zauner
Author-X-Name-First: Klaus G
Author-X-Name-Last: Zauner
Title: The financial and economic performance of social banks
Abstract:
The financial crisis of 2008 provides evidence for the instability of the conventional banking system. Social banks may present a viable alternative for conventional banks. This article analyses the performance of social banks related to the bank business model, economic efficiency, asset quality, and stability by comparing social banks with banks where the difference is likely to be large, namely with the 30 global systemically important banks (G-SIBs) of the Financial Stability Board over the period 2000–2014. We also analyse the relative impact of the global financial crisis on the bank performance. The performance of social banks and G-SIBs is surprisingly similar.
Journal: Applied Economics
Pages: 3833-3839
Issue: 34-35
Volume: 50
Year: 2018
Month: 7
X-DOI: 10.1080/00036846.2018.1436157
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1436157
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Handle: RePEc:taf:applec:v:50:y:2018:i:34-35:p:3833-3839
Template-Type: ReDIF-Article 1.0
Author-Name: Caitlin Cremin
Author-X-Name-First: Caitlin
Author-X-Name-Last: Cremin
Author-Name: Benjamin C. Anderson
Author-X-Name-First: Benjamin C.
Author-X-Name-Last: Anderson
Title: Commitment and satisfaction in the classroom and on the field: evidence from a Division I liberal arts college
Abstract:
Within higher education, there has been a persistent concern that student-athlete commitments to their athletic activities are detrimental to their academic studies. We collect data on student-athletes from a selective liberal arts university with Division I athletics where the expectations and levels of commitment to academics and athletics can be substantial. We fail to find any relationship between athletic experiences and time allocations to athletics or academics, but we do observe that individuals who exhibit greater levels of commitment in general, and to academics in particular, devote more time per week to academics and perform better as measured by grade point average. The only evidence of a trade-off between athletics and academics arises for individuals who report difficulty in managing and fulfilling their obligations who devote fewer hours to academics and perform worse academically. We also find that satisfaction with athletic experiences is correlated with interpersonal relationships and the athlete’s role on his/her team whereas satisfaction with academics depends upon the influence that he/she has over training. However, this flexibility does not translate into improved academic performance. The results suggest that universities concerned with adverse impacts of athletics upon academic performance should focus on policies that promote time and task management skills.
Journal: Applied Economics
Pages: 858-880
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1497848
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497848
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Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:858-880
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Jung
Author-X-Name-First: Christopher
Author-X-Name-Last: Jung
Author-Name: Stephan Nüesch
Author-X-Name-First: Stephan
Author-X-Name-Last: Nüesch
Title: The more others care, the more you share? – Social contagion as a stardom trigger of social media superstars –
Abstract:
Emerging superstars on social media platforms reshape the media landscape. This research analyses social contagion as a stardom trigger of social media superstars (SMS). We argue that in addition to serving as a quality indicator, the number of observed consumers of SMS performances also indicates the suitability of discussing the SMS performances with others. We experimentally manipulated the number of previous views of a YouTube video and find that a high number of previous views significantly increases the perceived quality and the video’s discussion suitability even when holding all objective video characteristics constant. We discuss implications for aspiring SMS and (online) marketers.
Journal: Applied Economics
Pages: 881-888
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1497849
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1497849
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Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:881-888
Template-Type: ReDIF-Article 1.0
Author-Name: Yuan Cao
Author-X-Name-First: Yuan
Author-X-Name-Last: Cao
Title: Fertility and labor supply: evidence from the One-Child Policy in China
Abstract:
This study provides new evidence on on the causal effect of fertility on maternal labor supply in rural China, using the fact that in some parts of rural China couples are allowed to have a second child if their firstborn is female. Estimates show that a second child reduces maternal labor force participation by 4.6 percentage points, labor supply intensity (hours worked conditional on employment) by 1.4 h per week and monthly income by 54.5 Chinese Yuan (18.7 percent). Further, the labor supply of mothers whose husbands are rural-to-urban migrants is the most sensitive to having an additional child, likely because they have more difficulty balancing farming and childcare. Conversely, labor supply is not reduced by fertility for mothers living in three-generation families, most likely because grandparents can provide both time and money to help with childcare.
Journal: Applied Economics
Pages: 889-910
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1502868
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1502868
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Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:889-910
Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Scheld
Author-X-Name-First: Jessica
Author-X-Name-Last: Scheld
Title: Education decisions and labour market outcomes
Abstract:
The financial return to a college degree is an increasing concern amid rising tuition costs and stagnant wages. Using the Education Longitudinal Study of 2002 (ELS:2002), I analyse the effect of post-secondary choices on wages for individuals entering the labour force between 2004 and 2012. Matching methods provide evidence of strong returns to earning a bachelor’s degree for both genders, similar to previous literature. Relative to high school graduates, women see wage benefits of 8–21% for some college attendance. However, men see negative effects of between 6%–13% from some college relative to high school graduates. The returns to a sub-baccalaureate degree as compared to earning some two-year credits is between 8%–25% for women and 8–14% for men. Further, the wage returns to a sub-baccalaureate degree as compared to earning some four-year credits is between 9%–17% for women and 9–20% for men. This translates into an additional $2,500-$4,700 per year for women and an additional $2,900-$6,400 per year for men. Since the average respondent with some four-year college experience has 2.3 years of earned post-secondary credits, shifting some into sub-baccalaureate programs may substantially decrease both the financial and time commitments of post-secondary education while increasing the returns after degree attainment.
Journal: Applied Economics
Pages: 911-940
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1512741
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1512741
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Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:911-940
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Strydom
Author-X-Name-First: Maria
Author-X-Name-Last: Strydom
Author-Name: Amale Scally
Author-X-Name-First: Amale
Author-X-Name-Last: Scally
Author-Name: John Watson
Author-X-Name-First: John
Author-X-Name-Last: Watson
Title: Impact of mood and gender on individual investors’ reactions to retractions and corrections of earnings forecasts
Abstract:
Whilst individual investors’ reactions to earnings forecasts have been widely documented, the impact that retractions and/or corrections have on investors’ decisions has received little attention. Further, the role that either/both mood and gender of investors play has not been investigated within this context. This is especially important as failure by individual investors to adjust correctly to retractions/corrections of earnings may have adverse investment outcomes. Our study thus investigates whether mood and gender differences influence the way in which individual investors react to retractions and corrections of management earnings forecasts. In this paper, we show that individual investors do not adjust correctly to retractions and corrections of previously disclosed information. We also find that both mood and gender play a significant role in individual investors’ reactions to such announcements. Awareness of the differences in investors’ reactions to retractions and corrections of earnings according to their mood and/or gender can provide further insights on whether their investment decisions are rational and are hence consistent with traditional models of assumed rational investment behaviour.
Journal: Applied Economics
Pages: 941-955
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524125
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524125
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Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:941-955
Template-Type: ReDIF-Article 1.0
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Sugar daddy u: human capital investment and the university-based supply of ‘romantic arrangements’
Abstract:
To deal with the financial hardships associated with rising college tuition, many female college students in the U.S. are turning to risqué forms of financing human capital investments, such as agreeing to potentially lucrative ‘romantic arrangements’ with older males, referred to as ‘sugar daddies,’ through the largest Internet-based club in the industry. Yet despite this recent trend, there is a relative paucity of published academic research on the economics of such behaviour. Using data from the more than 220 nationally ranked (by U.S. News & World Report’s America’s Best Colleges) colleges and universities in the U.S., presents results from both Poisson and scaled Poisson estimation suggesting that large, high-cost universities that are located in larger cities or where unemployment rates are higher lead the nation in the number of female students choosing such romantic arrangements in order to fund higher education. Moreover, those institutions that are chosen by more physically attractive female students, and those that enrol a higher percentage of female students, are also generating greater numbers of female student entrants into the sugar daddy industry. Each of these findings has implications for the human capital literature and the growing body of academic literature on the economics of beauty.
Journal: Applied Economics
Pages: 956-971
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524129
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524129
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Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:956-971
Template-Type: ReDIF-Article 1.0
Author-Name: Jinglu Jiang
Author-X-Name-First: Jinglu
Author-X-Name-Last: Jiang
Author-Name: Xin Xia
Author-X-Name-First: Xin
Author-X-Name-Last: Xia
Author-Name: Jinqiang Yang
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Yang
Title: Investment-based optimal capital structure
Abstract:
This paper extends the classical capital structure model by introducing the output of firm with ‘AK’ production technology dynamically depends on the endogenous investment decision and capital accumulation. Based on our calibration, it shows that the flexibility of dynamic investment and capital accumulation induces the firm to take the lower leverage at financing time and makes the leverage estimate closer to empirically observed leverage ratios, which provides an effective explanation for the ‘under-leverage puzzle’. In addition, this model predicts that the market leverage behaves in a U-shaped manner with capital liquidity, which provides a novel empirical test.
Journal: Applied Economics
Pages: 972-981
Issue: 9
Volume: 51
Year: 2019
Month: 2
X-DOI: 10.1080/00036846.2018.1524130
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1524130
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Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:972-981
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Gendreau
Author-X-Name-First: Brian
Author-X-Name-Last: Gendreau
Author-Name: Yong Jin
Author-X-Name-First: Yong
Author-X-Name-Last: Jin
Author-Name: Mahendrarajah Nimalendran
Author-X-Name-First: Mahendrarajah
Author-X-Name-Last: Nimalendran
Author-Name: Xiaolong Zhong
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Zhong
Title: CVaR-LASSO Enhanced Index Replication (CLEIR): outperforming by minimizing downside risk
Abstract:
Index-funds are one of the most popular investment vehicles among investors, with total assets indexed to the S&P500 exceeding $8.7 trillion at-the-end of 2016. Recently, enhanced-index-funds, which seek to outperform an index while maintaining a similar risk-profile, have grown in popularity. We propose an enhanced-index-tracking method that uses the linear absolute shrinkage selection operator (LASSO) method to minimize the Conditional Value-at-Risk (CVaR) of the tracking error. This minimizes the large downside tracking-error while keeping the upside. Using historical and simulated data, our CLEIR method outperformed the benchmark with a tracking error of $$ \sim 1\% $$∼1%. The effect is more pronounced when the number of the constituents is large. Using 50–80 large stocks in the S&P 500 index, our method closely tracked the benchmark with an alpha $$2.55\% $$2.55%.
Journal: Applied Economics
Pages: 5637-5651
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616072
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616072
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Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5637-5651
Template-Type: ReDIF-Article 1.0
Author-Name: Kashif Munir
Author-X-Name-First: Kashif
Author-X-Name-Last: Munir
Author-Name: Nimra Riaz
Author-X-Name-First: Nimra
Author-X-Name-Last: Riaz
Title: Macroeconomic effects of fiscal policy in Pakistan: a disaggregate analysis
Abstract:
This study analyzes the macroeconomic effects of fiscal policy on macroeconomic variables in Pakistan. The study utilizes VAR framework and uses quarterly data of Pakistan from 1976Q1 to 2017Q4. The results showed that after an increase in government expenditures, private consumption and prices take three quarters to increase, while private investment follows the declining trend. Private consumption and interest rate are negatively related with taxes, while private investment and prices are positively related with taxes. Real GDP, private consumption and interest rate respond positively with an increase in developmental expenditure, public consumption and public investment. Private investment is negatively related with development expenditure, public consumption and public investment. An increase in direct tax as well as indirect tax leads to an increase in real GDP, private investment and interest rate, while private consumption takes three to five quarters to responds. Private investment and prices are positively related with non-tax revenue, while real GDP, private consumption and interest rate are negatively related. These results support the Keynesian view that government expenditure and taxes are useful tools to stimulate the economic activity, while crowding-out hypothesis holds in Pakistan as well. An active and efficient role of government is required for macroeconomic stability.
Journal: Applied Economics
Pages: 5652-5662
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616074
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616074
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Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5652-5662
Template-Type: ReDIF-Article 1.0
Author-Name: Glenn P. Jenkins
Author-X-Name-First: Glenn P.
Author-X-Name-Last: Jenkins
Author-Name: Hope Amala Anyabolu
Author-X-Name-First: Hope
Author-X-Name-Last: Amala Anyabolu
Author-Name: Pejman Bahramian
Author-X-Name-First: Pejman
Author-X-Name-Last: Bahramian
Title: Family decision-making for educational expenditure: new evidence from survey data for Nigeria
Abstract:
This study examines the determinants of educational expenditures by households in Nigeria. Data from the Nigerian General Household Survey, Panel 2012/2013, Wave 2 was used and a double-hurdle model was employed for the analysis. The results suggest household income, the age, education, gender of the household heads and urban versus rural residence have a significant impact on the decision to spend on education. Such expenditures are income elastic overall, but are very different in magnitude for low income compared to higher income families. It is found that the income elasticity of education expenditures are approximately four times greater for households in the bottom two-thirds of the income distribution than for those on the top one-third of the income distribution.
Journal: Applied Economics
Pages: 5663-5673
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1616075
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1616075
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Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5663-5673
Template-Type: ReDIF-Article 1.0
Author-Name: Veysel Avsar
Author-X-Name-First: Veysel
Author-X-Name-Last: Avsar
Author-Name: Nurgul Sevinc
Author-X-Name-First: Nurgul
Author-X-Name-Last: Sevinc
Title: Does antidumping cause investment and R&D?: Evidence from Turkey
Abstract:
This article employs Turkish firm-level data and analyses the effect of antidumping protection on capital spending and Research and Development (R&D). Using matching techniques and alternative control groups and applying difference-in-difference methodology, we find that antidumping duties imposed by the Turkish government significantly increase fixed investment and R&D expenditures. We also show that antidumping duties are effective in terms of increasing the domestic sales. To our knowledge, our article represents the first attempt to analyse the effect of antidumping policy in Turkey, a very active user of temporary trade barriers, using firm-level data.
Journal: Applied Economics
Pages: 5674-5682
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1617397
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1617397
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Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5674-5682
Template-Type: ReDIF-Article 1.0
Author-Name: Régis Chenavaz
Author-X-Name-First: Régis
Author-X-Name-Last: Chenavaz
Author-Name: Octavio Escobar
Author-X-Name-First: Octavio
Author-X-Name-Last: Escobar
Author-Name: Xavier Rousset
Author-X-Name-First: Xavier
Author-X-Name-Last: Rousset
Title: An analytical framework for retailer price and advertising decisions for products with temperature-sensitive demand
Abstract:
The demand for weather-sensitive products, such as beverages, ice creams, or chocolate varies with changes in temperature. Yet, retailers lack a framework to adapt the marketing mix elements, such as price and advertising, in line with such changes. We provide a theoretical framework to fill this gap by developing an analytical model to derive the optimal marketing mix when product demand depends on temperature. The model prescribes how price and advertising for different demand characteristics should be set following a temperature change. Integrating the temperature element in the marketing mix offers an original profit-enhancing strategy.
Journal: Applied Economics
Pages: 5683-5693
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1617398
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1617398
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Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5683-5693
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher M. Duquette
Author-X-Name-First: Christopher M.
Author-X-Name-Last: Duquette
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Major league baseball’s Moneyball at age 15: a re-appraisal
Abstract:
In the 15 years since publication of the book Moneyball: The Art of Winning an Unfair Game in 2003, major-league baseball (MLB) has seen the embrace of analytics by both fans and teams. Using 45 seasons of MLB data, since the introduction of the designated-hitter in the American League in 1973, the present study validates the central premise in Moneyball regarding the importance of certain performance metrics, such as on-base percentage (OBP). The terms in our empirical model are constructed such that our results permit a straightforward comparison of the relative contribution of each factor towards MLB teams’ success in winning games. We also provide evidence indicating that MLB teams have moved to align their payrolls with Moneyball analytics in the years following the book’s publication.
Journal: Applied Economics
Pages: 5694-5700
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1617399
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1617399
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Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5694-5700
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco José Callado-Muñoz
Author-X-Name-First: Francisco José
Author-X-Name-Last: Callado-Muñoz
Author-Name: Elena Del Rey
Author-X-Name-First: Elena
Author-X-Name-Last: Del Rey
Author-Name: Natalia Utrero-González
Author-X-Name-First: Natalia
Author-X-Name-Last: Utrero-González
Title: Income-contingent loan with personal insurance policy: an empirical assessment using Spanish data
Abstract:
We propose an Income Contingent Loan that defers the payment of university fees and charges a fixed proportion of gross income for 30 years or until the debt is written off. Under these conditions, some participants in the scheme will have insufficient income to fully repay their loan balances. The deficit will be covered by the taxpayer, who ultimately bears the risk of investing in higher education. We then propose to transfer this risk to the student by adding a mandatory personal insurance policy to the individual loan. We calculate the premium required for the system to break even in Spain when everybody pays the insurance cost. Alternatively, the payment of the premium can be deferred, adding it to total debt. Then, some participants in the scheme will have insufficient income to even pay the insurance cost, and the premium needs to be increased to maintain the sustainability of the program. Although these mechanisms imply redistribution towards borrowers who end up being low earners, we show that middle-income individuals contribute a higher proportion of their incomes to covering for those unable to repay. To provide the system with more internal progressivity, we propose to impose a minimum period of repayment.
Journal: Applied Economics
Pages: 5701-5711
Issue: 52
Volume: 51
Year: 2019
Month: 11
X-DOI: 10.1080/00036846.2019.1619017
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1619017
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Handle: RePEc:taf:applec:v:51:y:2019:i:52:p:5701-5711
Template-Type: ReDIF-Article 1.0
Author-Name: Meghan Millea
Author-X-Name-First: Meghan
Author-X-Name-Last: Millea
Author-Name: Sandra Orozco-Aleman
Author-X-Name-First: Sandra
Author-X-Name-Last: Orozco-Aleman
Title: Estimating tuition elasticities of resident and non-resident enrolments at south-eastern public universities
Abstract:
Due to increased reliance on tuition revenue, universities must be cognizant of the impacts tuition changes have on enrolment. In economics, the law of demand indicates that price increases (tuition) cause quantity demanded (enrolments) to decrease. The impacts of tuition increases on revenue depend on the magnitude of these two changes. The contribution of this article is the methodology used to control for competitor pricing in enrolment elasticity models. For resident enrolment, we included other in-state, 4-year public universities. For non-resident enrolment, we used weighting schemes based on enrolment patterns by school and by state to incorporate competitors’ tuition rates and relevant economic and demographic information. We applied these methodologies to universities in the south-eastern U.S. from 2003 to 2010. We found that tuition elasticities of both resident and non-resident enrolments at 4-year public universities varied from inelastic resident enrolments to elastic non-resident enrolments at the state level. In some cases, competitor pricing significantly impacted enrolments; in other cases, it did not. Across the full sample, 1% increase in resident tuition rates decreased enrolments by 0.3%. The techniques developed in this article can be used by individual universities or university systems to inform their strategies in setting tuition rates.
Journal: Applied Economics
Pages: 2027-2040
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231904
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231904
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Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2027-2040
Template-Type: ReDIF-Article 1.0
Author-Name: Kui-Wai Li
Author-X-Name-First: Kui-Wai
Author-X-Name-Last: Li
Title: Is there an ‘interest rate – speculation’ relationship? Evidence from G7 in the pre- and post-2008 crisis
Abstract:
The article revisits the IS-LM macroeconomic model by incorporating speculation into the investment function. The discussion is supported empirically by using data from the G7 countries to examine the different interest rate regimes in the pre- and post-2008 financial crisis. The estimation of an ‘anchor’ interest rate provides a reference rate for the G7 countries. The empirical study is extended to examine if the three quantitative easing (QE) episodes in the U.S. are growth promoting. The article concludes that the maintenance of a high and stable interest rate policy is needed for sustainable growth in the G7 countries.
Journal: Applied Economics
Pages: 2041-2059
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231905
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231905
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Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2041-2059
Template-Type: ReDIF-Article 1.0
Author-Name: Veysel Eraslan
Author-X-Name-First: Veysel
Author-X-Name-Last: Eraslan
Title: Do sovereign rating announcements affect emerging market exchange rate correlations? A multivariate DCC-GARCH approach
Abstract:
This article investigates the effects of sovereign credit rating announcements on time-varying exchange rate return correlations for a sample of 11 emerging market countries over the period 2002–2015. The data set covers daily exchange rates and long-term foreign currency sovereign ratings, outlooks and watch list. The pairwise time-varying correlations are derived by corrected Dynamic Conditional Correlation (cDCC) modelling which is a member of multivariate Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models family. Furthermore, to capture the global factor effect, a dynamic-weighted index is created by using dynamic principal component (DPC) analysis. Findings suggest that some of the emerging market exchange rate co-movements are affected by rating announcements. Upgrades of Moody’s and downgrades of Fitch lead to spillovers. Main source of these spillovers are sovereign credit rating changes of European countries, especially Czech Republic and Turkey. Countries with high amount of external debt, large current account deficit and speculative grade are more prone to be influenced by announcements on a foreign country’s long-term sovereign rating.
Journal: Applied Economics
Pages: 2060-2082
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231906
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231906
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Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2060-2082
Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Merkel
Author-X-Name-First: Steffen
Author-X-Name-Last: Merkel
Author-Name: Sascha L. Schmidt
Author-X-Name-First: Sascha L.
Author-X-Name-Last: Schmidt
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: The effect of individual uncertainty on the specificity of human capital: empirical evidence from career developments in professional soccer
Abstract:
This study looks at careers in professional soccer to investigate the determinants of human capital (HC) specificity. Inspired by labour market research, we formulate three hypotheses on how uncertainty about the usefulness of individuals’ (more productive) specific skills affects their investment in (more flexible) general skills. The empirical analysis is based on unique panel data on school grades, soccer evaluations, and sociodemographic characteristics of 90 elite players from the youth academy of a German Bundesliga club. We find that senior and long-serving players, who are comparably certain that their (soccer) specific capital will be sufficient to pursue a lucrative professional career, invest less in general HC at school. Expected soccer performance, in contrast, has a counterintuitive positive effect. Our results expand knowledge on the factors influencing HC specificity from the macro to the subject level and highlight practical implications for institutions that train gifted individuals.
Journal: Applied Economics
Pages: 2083-2095
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231907
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231907
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Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2083-2095
Template-Type: ReDIF-Article 1.0
Author-Name: A. Almasri
Author-X-Name-First: A.
Author-X-Name-Last: Almasri
Author-Name: K. Månsson
Author-X-Name-First: K.
Author-X-Name-Last: Månsson
Author-Name: P. Sjölander
Author-X-Name-First: P.
Author-X-Name-Last: Sjölander
Author-Name: G. Shukur
Author-X-Name-First: G.
Author-X-Name-Last: Shukur
Title: A wavelet-based panel unit-root test in the presence of an unknown structural break and cross-sectional dependency, with an application of purchasing power parity theory in developing countries
Abstract:
This article introduces two different non-parametric wavelet-based panel unit-root tests in the presence of unknown structural breaks and cross-sectional dependencies in the data. These tests are compared with a previously suggested non-parametric wavelet test, the parameteric Im-Pesaran and Shin (IPS) test and a Wald type of test. The results from the Monte Carlo simulations clearly show that the new wavelet-ratio tests are superior to the traditional tests both in terms of size and power in panel unit-root tests because of its robustness to cross-section dependency and structural breaks. Based on an empirical Central American panel application, we can, in contrast to previous research (where bias due to structural breaks is simply disregarded), find strong, clear-cut support for purchasing power parity (PPP) in this developing region.
Journal: Applied Economics
Pages: 2096-2105
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231908
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231908
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Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2096-2105
Template-Type: ReDIF-Article 1.0
Author-Name: Chatura Ariyadasa
Author-X-Name-First: Chatura
Author-X-Name-Last: Ariyadasa
Author-Name: E. A. Selvanathan
Author-X-Name-First: E. A.
Author-X-Name-Last: Selvanathan
Author-Name: M. A. B. Siddique
Author-X-Name-First: M. A. B.
Author-X-Name-Last: Siddique
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: On the profitability of commercial banks: the Sri Lankan case
Abstract:
This study determines the factors affecting the profitability of licensed commercial banks (LCBs) in Sri Lanka, including the effect of the prolonged conflict which ended in 2009. Using an error correction model together with data for the period 2006–2014 of 10 major LCBs, the results reveal that, in the short run, capital and liquidity have a positive effect on bank profitability and default loans, interest margin (IM), operating cost, and interest rates (IRs) have a negative effect. In the long run, bank profitability is significantly impacted by default loans, IM, real GDP, inflation, IRs, capital, operating cost, and conflict. The ending of the prolonged conflict has significantly contributed to improved bank performance.
Journal: Applied Economics
Pages: 2106-2116
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231909
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231909
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Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2106-2116
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas E. Conine
Author-X-Name-First: Thomas E.
Author-X-Name-Last: Conine
Author-Name: Michael B. McDonald
Author-X-Name-First: Michael B.
Author-X-Name-Last: McDonald
Author-Name: Maurry Tamarkin
Author-X-Name-First: Maurry
Author-X-Name-Last: Tamarkin
Title: Estimation of relative risk aversion across time
Abstract:
This article examines relative risk aversion in the framework of a three-moment asset pricing model that accounts for skewness. Accounting for skewness in calculating risk aversion gives a more accurate series of estimates of risk aversion and helps to reconcile the wide disparity in risk coefficients found in past literature. Risk aversion coefficients are calculated from 1926 to 2014 using stock market returns. This procedure results in a time series of data that can be related to other variables such as real interest rates and changes in demand for various asset classes.
Journal: Applied Economics
Pages: 2117-2124
Issue: 21
Volume: 49
Year: 2017
Month: 5
X-DOI: 10.1080/00036846.2016.1231910
File-URL: http://hdl.handle.net/10.1080/00036846.2016.1231910
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Handle: RePEc:taf:applec:v:49:y:2017:i:21:p:2117-2124
Template-Type: ReDIF-Article 1.0
Author-Name: Nilanjana Chakraborty
Author-X-Name-First: Nilanjana
Author-X-Name-Last: Chakraborty
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Rational functions: an alternative approach to asset pricing
Abstract:
This paper shows that asset prices are linear polynomials of various underlying explanatory factors and asset returns being ratios of these polynomials, are rational functions that do not add linearly when averaging. Hence, average returns should be modeled based on stock prices. However, continuous returns may be treated as approximately linear across time and modeled directly. Our new Rational Function (RF) models, empirically outperform the traditional asset pricing models like the Capital Asset Pricing Model (CAPM) and the Fama–French three and five-factor models for both average and continuous returns. Moreover, the RF theory also provides a model to estimate the asset volumes. The average change in asset volumes together with average returns provide the estimates for average change in market values of assets. Thus, the RF model approach can be used to select assets that provide either highest returns for profit maximization or highest change in market values for wealth maximization for given levels of risk.
Journal: Applied Economics
Pages: 2091-2119
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540848
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540848
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Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2091-2119
Template-Type: ReDIF-Article 1.0
Author-Name: Heather L.R. Tierney
Author-X-Name-First: Heather L.R.
Author-X-Name-Last: Tierney
Title: Tracking real-time data revisions in inflation persistence
Abstract:
Regarding the forecasting of real-time data, it is assumed that the third quarter release produces the best forecasts since it includes data from new and revised sources, which this paper finds is not necessarily the case. There seems to be a benchmark effect when estimating the local nonparametric regressions and the forecasts of real-time PCE and core PCE when examining the four benchmark periods beginning in 1996:Q1, 1999:Q4, 2003:Q4, and 2009:Q3. There is a benchmark effect with respect to the estimated local nonparametric slopes with the demarcation being at the 2003:Q4 benchmark, which is also the demarcation for the forecasting results. For the benchmark revisions periods of 1996:Q1 and 1999:Q4, the second quarter real-time data releases produce the smaller RMSE and for the benchmark revisions of 2003:Q4 and 2009:Q3, the third quarter real-time data releases produce forecasts with smaller RMSE approximately 58% and 60% of the time, respectively.Abbreviations: PCE, Personal Consumption Expenditures; KWLS, Kernel Weighted Least Squares; "V_" as a prefix stand for vintage, i.e. V_2003:Q4 is vintage 2003:Q4, which means that the data sample ends in 2003: Q3; IRSC, integrated residual squares criterion; NPISH, Non-Profit Institutions Serving Households; SNA, System of Accounts; RMSE, Root Mean Square Error; MAE, Mean Absolute Error; NAICS, North American Industry Classification System; SIC, Standard Industrial Classification; ARSC, Average Residual Squares Criterion; I-O, Input – Output; EIA, Energy Information Administration; ATM, Automated Teller Machines; BEA, Bureau of Economic Analysis; SNA, System of Accounts
Journal: Applied Economics
Pages: 2120-2142
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540849
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540849
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Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2120-2142
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Tiryaki
Author-X-Name-First: Ahmet
Author-X-Name-Last: Tiryaki
Author-Name: Reşat Ceylan
Author-X-Name-First: Reşat
Author-X-Name-Last: Ceylan
Author-Name: Levent Erdoğan
Author-X-Name-First: Levent
Author-X-Name-Last: Erdoğan
Title: Asymmetric effects of industrial production, money supply and exchange rate changes on stock returns in Turkey
Abstract:
The aim of this article is twofold: First, it examines the asymmetric effects of industrial production, money supply and RER on stock returns in Turkey by using the non-linear autoregressive distributed lag (NARDL) model over the periods of 1994:01–2017:05 and 2002:01–2017:05. Second, it tries to determine whether there is a change of these macroeconomic variables’ effects on stock returns after the 2001 financial crisis since after 2002 period represents a structural break from the past in terms of economic, political and macroeconomic policy approaches. The study finds that the effects of the changes in industrial production, money supply and RER on stock returns are asymmetric, and the asymmetries are larger after the 2002 subsample compared to the full sample period. The empirical results further suggest that tight monetary policies appear to retard the stock returns more than easy monetary policies that stimulate them.
Journal: Applied Economics
Pages: 2143-2154
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540850
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540850
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Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2143-2154
Template-Type: ReDIF-Article 1.0
Author-Name: Zhongyuan Geng
Author-X-Name-First: Zhongyuan
Author-X-Name-Last: Geng
Author-Name: Xuan Liu
Author-X-Name-First: Xuan
Author-X-Name-Last: Liu
Title: Optimal input trade policy under economic uncertainties in a small open economy
Abstract:
This article theoretically analyses optimal input trade policy under economic uncertainties in a small open economy. The benchmark model explains both key business cycle moments and asset prices of a representative emerging economy, and the corresponding deterministic version of the model finds no gain by deviating from the free input trade policy. The main findings are as follows: (1) it is optimal for the government to subsidize imported intermediate inputs in the benchmark model and (2) the result is robust to various shocks, various key structural parameters and various preference specifications.
Journal: Applied Economics
Pages: 2155-2171
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540851
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540851
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Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2155-2171
Template-Type: ReDIF-Article 1.0
Author-Name: Hui Wang
Author-X-Name-First: Hui
Author-X-Name-Last: Wang
Author-Name: Yanyi Wang
Author-X-Name-First: Yanyi
Author-X-Name-Last: Wang
Author-Name: Shunming Zhang
Author-X-Name-First: Shunming
Author-X-Name-Last: Zhang
Title: Numerical simulation on property tax reform: evidence from China
Abstract:
This article analyses the property tax reform in China in a computable general equilibrium model that recognizes the interaction between and among housing markets in different provinces and macroeconomic development. Using real data in 2010, we present the benchmark equilibrium for reference property and income tax rates. Then, we examine different property and income tax policies and make a comparison of their production, consumption, welfare and national income. We find that the implementation of property tax would decrease the house production at the expense of welfare in taxed area. The expansion of the taxed regions may increase the total social welfare and national income. Even though property tax policy may not be able to change the income distribution in China, increasing income tax rate could narrow the income disparity. Finally, this article shows the reliability of the conclusions when sensitivity analysis on optimal condition of equilibrium computation is performed under varied property tax policy.
Journal: Applied Economics
Pages: 2172-2194
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540852
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540852
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Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2172-2194
Template-Type: ReDIF-Article 1.0
Author-Name: Tong Shu
Author-X-Name-First: Tong
Author-X-Name-Last: Shu
Author-Name: Yongjian Wang
Author-X-Name-First: Yongjian
Author-X-Name-Last: Wang
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Author-Name: Yan Yang
Author-X-Name-First: Yan
Author-X-Name-Last: Yang
Title: Analysis of evolutionary game in structural formation of market power in remanufacturing supply chains
Abstract:
It is normal for enterprises to engage in remanufacturing nowadays. Nevertheless, the concern of enterprises and researchers is whether remanufacturers should compete for leadership in supply chains. Considering the WTP for new and remanufactured products differs, this article the evolutionary game theory model in three structures of leadership in supply chains. It investigates the processes of market evolution and choices of strategies when manufacturers and retailers compete or do not compete for leadership in the market. It has been shown in the case of market evolution, according to the 12 conditions formed from different prices that manufacturer and retailer have to pay for competing for leadership, there are five types of ultimate evolutionary stability about the choices of strategies. Further analyses show that these five different evolutionary stability results include nine different evolutionary paths. Analyses of examples further show the evolutionary processes and results in distinct circumstances. This article extends the application of the evolutionary game in remanufacturing supply chains in theory and provides some guidance for enterprises to make decisions when they consider whether they compete for leaders in remanufacturing supply chains in reality.
Journal: Applied Economics
Pages: 2195-2220
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540853
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540853
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Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2195-2220
Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Moral-Benito
Author-X-Name-First: Enrique
Author-X-Name-Last: Moral-Benito
Author-Name: Paul Allison
Author-X-Name-First: Paul
Author-X-Name-Last: Allison
Author-Name: Richard Williams
Author-X-Name-First: Richard
Author-X-Name-Last: Williams
Title: Dynamic panel data modelling using maximum likelihood: an alternative to Arellano-Bond
Abstract:
The Arellano-Bond estimator is widely used among applied researchers when estimating dynamic panels with fixed effects and predetermined regressors. This estimator might behave poorly in finite samples when the cross-section dimension of the data is small (i.e. small $$N$$N), especially if the variables under analysis are persistent over time. This paper discusses a maximum likelihood estimator that is asymptotically equivalent to Arellano and Bond (1991) but presents better finite sample behaviour. The estimator is based on an alternative parametrization of the likelihood function introduced in Moral-Benito (2013). Moreover, it is easy to implement in Stata using the xtdpdml command as described in a companion paper published in the Stata Journal, which also discusses further advantages of the proposed estimator for practitioners.
Journal: Applied Economics
Pages: 2221-2232
Issue: 20
Volume: 51
Year: 2019
Month: 4
X-DOI: 10.1080/00036846.2018.1540854
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1540854
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Handle: RePEc:taf:applec:v:51:y:2019:i:20:p:2221-2232
Template-Type: ReDIF-Article 1.0
Author-Name: Hélène Bouscasse
Author-X-Name-First: Hélène
Author-X-Name-Last: Bouscasse
Author-Name: Matthieu de Lapparent
Author-X-Name-First: Matthieu
Author-X-Name-Last: de Lapparent
Title: A rank-dependent utility approach to model intra- and inter-individual heterogeneity in risky choice behaviours
Abstract:
Using a stated preferences survey, the objective of this paper is to investigate the intra- and inter-individual heterogeneity of mode choice, when travel time is subject to variability. By‘inter-individual heterogeneity’ is meant that people are different in terms of attitude to risk and have different utility functions. By ‘intra-individual heterogeneity’ is meant that the behaviour may be different even when performed by the same individual when faced with a different mode of transport. Based on Rank-Dependent Utility Theory, the paper shows that the occurrence of delays associated with train trips is overestimated whereas they are underestimated for car trips. A latent-class logit model offers a somewhat different perspective: if, overall, car users are more likely to perceive possible delays for train trips than for car trips, train users tend to consider the objective occurrence of delays as they are presented in the survey and adopt a risk neutral choice behaviour.
Journal: Applied Economics
Pages: 3337-3353
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710453
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710453
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Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3337-3353
Template-Type: ReDIF-Article 1.0
Author-Name: Ji Wu
Author-X-Name-First: Ji
Author-X-Name-Last: Wu
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Author-Name: Shiyu Zhang
Author-X-Name-First: Shiyu
Author-X-Name-Last: Zhang
Author-Name: Liping Zou
Author-X-Name-First: Liping
Author-X-Name-Last: Zou
Title: The economic policy uncertainty and firm investment in Australia
Abstract:
This paper examines the impact of economic policy uncertainty (EPU) on the Australian firm investment activity. We find a significant positive relationship between the EPU and the firm investment over 2002 to 2017 period. Our main results remain unchanged after several endogeneity tests. Further analysis reveals that this relationship becomes pronounced for firms if their headquarters located in small states, firms with more tangible assets, higher operating cash flows and cash holdings, higher profits and leverage, but firms with fewer dividend payouts. Our paper sheds lights on the unique attribute of the impact of the EPU on the Australian firm investment activity and offers important policy and managerial implications.
Journal: Applied Economics
Pages: 3354-3378
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710454
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710454
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Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3354-3378
Template-Type: ReDIF-Article 1.0
Author-Name: Simona Rasciute
Author-X-Name-First: Simona
Author-X-Name-Last: Rasciute
Author-Name: Paul Downward
Author-X-Name-First: Paul
Author-X-Name-Last: Downward
Author-Name: Nick Simmons
Author-X-Name-First: Nick
Author-X-Name-Last: Simmons
Title: Intrinsic versus instrumental benefits of higher education: the challenge from self-funded higher education
Abstract:
UK policy concern about the value and funding of Higher Education has focussed on the intrinsic and instrumental impacts of education. Typically, returns to education are identified by narrow economic metrics, like earnings. However, policy makers recognize the need for wider measures of welfare. Consequently, contemporaneous relationships with subjective well-being (SWB) have been explored. In this paper the effects of higher education on SWB are mapped through time. The results show positive effects in the first year at university that dissipate afterwards. Intrinsic benefits from education remain but get eroded implying increased stress from loan financed education with transition to a more instrumental perspective on education.
Journal: Applied Economics
Pages: 3379-3390
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710455
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710455
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Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3379-3390
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: On the different survival rates of Portuguese microbusinesses – the case of projects supported by microcredit
Abstract:
In spite of their importance to the micro-entrepreneur’s life, Portuguese microbusinesses exhibit a short duration in activity. However, until now there has been scarce attention about the determinants characterizing the microbusiness and/or the micro-entrepreneur. This paper is based on a very comprehensive survey distributed to the microcredit borrowers in Portugal. The main empirical findings suggest that more mature entrepreneurs, with family support, a permanent set of customers, and an awareness of the quality of their goods and services exhibit lower hazard rates of finishing the business. Conversely, high-fixed costs, bad business locations, and periods of economic crisis significantly reduce the duration of the business.
Journal: Applied Economics
Pages: 3391-3405
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710456
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710456
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Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3391-3405
Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Huei Chiao
Author-X-Name-First: Cheng-Huei
Author-X-Name-Last: Chiao
Author-Name: Bill Hu
Author-X-Name-First: Bill
Author-X-Name-Last: Hu
Author-Name: Ying Huang
Author-X-Name-First: Ying
Author-X-Name-Last: Huang
Author-Name: Jim Washam
Author-X-Name-First: Jim
Author-X-Name-Last: Washam
Title: Priced on the note: the case of Japanese IPOs
Abstract:
This article examines the pricing of Japanese IPOs: 54.26% are priced in 1,000 Japanese yen increments (The Japanese yen (JPY) has denominations of banknotes and coins. Banknotes are in 1,000, 2,000, 5,000, and 10,000-yen. Coins are in 1, 5, 10, 50, 100, and 500-yen. One thousand banknotes are similar to US $10 dollars. Coins are considered as changes in Japan.) (note-ending IPOs), an economically large increment on a per-share basis that is equivalent to 10 US dollar increments assuming an exchange rate of 1 US dollar to 100 Japanese yen. The number of note-ending IPOs increases with price levels and pricing uncertainty, supporting the negotiation hypothesis. Note-ending IPOs are associated with higher volatility, higher underwriters’ fees, wider filing price range, smaller deal size, shorter firm age, and lower underwriter reputation. Price clustering contributes to IPO underpricing. The initial returns are 60.44% higher for note-ending relative to coin-ending IPOs. These results shed light on the pricing of Japanese IPOs due to negotiations and on investment opportunities with note-ending IPOs.
Journal: Applied Economics
Pages: 3406-3417
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1711507
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1711507
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Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3406-3417
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Geiger
Author-X-Name-First: Martin
Author-X-Name-Last: Geiger
Author-Name: Eric Mayer
Author-X-Name-First: Eric
Author-X-Name-Last: Mayer
Author-Name: Johann Scharler
Author-X-Name-First: Johann
Author-X-Name-Last: Scharler
Title: Inequality and the business cycle: evidence from U.S. survey data
Abstract:
We study the effects of macroeconomic shocks on measures of economic inequality obtained from U.S. survey data. To identify aggregate supply, aggregate demand, and monetary policy shocks, we estimate vector autoregressions and impose sign and zero restrictions on impulse response functions. We find that the effects of the macroeconomic shocks on inequality depend on the type of shock as well as on the measure of inequality considered. Contractionary monetary policy shocks increase expenditure and consumption inequality, whereas income and earnings inequality are less affected. Adverse aggregate supply and demand shocks increase income and earnings inequality, but reduce expenditure and consumption inequality. Our results suggest that different channels dominate in the transmission of the shocks. The earnings heterogeneity channel is consistent with the inequality dynamics after monetary policy shocks, but it appears to be less crucial when the economy is hit by either aggregate supply or aggregate demand shocks. Using variance decompositions, we find that although the macroeconomic shocks account for large shares of the variation in the macroeconomic variables, their contributions to the dynamics of the inequality measures are limited.
Journal: Applied Economics
Pages: 3418-3435
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1711508
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1711508
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Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3418-3435
Template-Type: ReDIF-Article 1.0
Author-Name: Magnus Blomkvist
Author-X-Name-First: Magnus
Author-X-Name-Last: Blomkvist
Author-Name: Karl Felixson
Author-X-Name-First: Karl
Author-X-Name-Last: Felixson
Author-Name: Anders Löflund
Author-X-Name-First: Anders
Author-X-Name-Last: Löflund
Title: Third-party certification and post-IPO acquisitions
Abstract:
We explore the link between third-party certification (venture capital backing, analyst following and having a top underwriter), and post-IPO acquisition activity through the reduction in valuation uncertainty channel. In a sample of 2,424 U.S. IPOs, we find that third-party certification facilitates post-IPO acquisitions. The certified firms are both more likely and conduct acquisitions sooner after the IPO. Our results support the notion that third-party certification reduces post-IPO valuation uncertainty and thereby facilitates a more efficient acquisition strategy.
Journal: Applied Economics
Pages: 3436-3447
Issue: 31
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1711509
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1711509
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Handle: RePEc:taf:applec:v:52:y:2020:i:31:p:3436-3447
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Contu
Author-X-Name-First: Davide
Author-X-Name-Last: Contu
Author-Name: Susana Mourato
Author-X-Name-First: Susana
Author-X-Name-Last: Mourato
Author-Name: Ozgur Kaya
Author-X-Name-First: Ozgur
Author-X-Name-Last: Kaya
Title: Individual preferences towards nuclear energy: the transient residency effect
Abstract:
Nuclear energy is an energy source that is usually unfavourable among the public due to its inherent risks. However, it presents a number of benefits, including the possibility to reduce emissions and the contribution to tackle climate change. Among the countries adopting nuclear energy, the United Arab Emirates (UAE) is unusual in that a large share of its residents consists of expatriates who live only part of their lives in the country with no (or highly unlikely) access to citizenship. This distinctive population structure offers the opportunity to investigate the effect of transient residency on acceptance and preferences towards nuclear energy. We conducted this investigation by designing a stated preferences-based survey, targeting an online nationwide sample. The survey collected information on socio-economic characteristics and attitudes, including views on perceived risks and benefits of nuclear energy, views towards different energy sources and life satisfaction. Results indicate that transient individuals, especially those who are more satisfied with their lives in the UAE, are significantly less likely to oppose the construction of new nuclear plants. These individuals are characterized by a more positive perception of benefits over risks arising from nuclear energy. Policy implications are discussed.
Journal: Applied Economics
Pages: 3219-3237
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707766
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707766
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Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3219-3237
Template-Type: ReDIF-Article 1.0
Author-Name: Sabine Klinger
Author-X-Name-First: Sabine
Author-X-Name-Last: Klinger
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Secondary job holding in Germany
Abstract:
Since 2003, the number and ratio of multiple jobholders has more than doubled, although the German labour market has been experiencing a strong and sustained upswing. This study analyses multiple jobholding from a time series as well as a cross section perspective. We use rich register data and multinomial logit estimations. The microeconometric findings are linked to macroeconomic trends. Workers hold multiple jobs primarily because of earnings´ or hours´ constraints in the main job. Towards the upper end of the earnings distribution, the probability to have another job does not rise again. Thus, we do not find evidence that another job shall enrich the job portfolio as such. Moreover, female workers, migrants, workers in West Germany as well as in service sectors have a higher than average probability of multiple jobholding. However, the individual factors explain the rise of multiple jobholding over time to a very small extent. Hence, we argue that the far-reaching exemption of second marginal jobs from social security contributions and taxes sets wrong incentives.
Journal: Applied Economics
Pages: 3238-3256
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707767
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707767
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Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3238-3256
Template-Type: ReDIF-Article 1.0
Author-Name: Abdallah Othman
Author-X-Name-First: Abdallah
Author-X-Name-Last: Othman
Author-Name: Glenn P. Jenkins
Author-X-Name-First: Glenn P.
Author-X-Name-Last: Jenkins
Title: Estimation of the rate of return to capital in the East African Community (EAC) Countries
Abstract:
The real rate of return to capital plays a vital part in the economy in evaluating the contribution of capital investment to the economic growth. As it is also a key variable in estimating the economic opportunity cost of capital for use as the economic discount rate in investment decision-making. The objective of this study is to estimate the economic real rates of return to reproducible and remunerative capital of the EAC economies. The results indicate that the real rates of return to reproducible capital over the period 1999–2016 have averaged 10.70% in Kenya and Rwanda, while it averaged 12.05% and 9.86% in Tanzania and Uganda, respectively. With regard to the marginal rates of return to remunerative capital, the results suggest that EAC countries have averaged 16.28%, 16.21%, 15.07% and 14.49% in Tanzania, Rwanda, Kenya and Uganda, respectively, over the same period.
Journal: Applied Economics
Pages: 3257-3273
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1708255
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1708255
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Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3257-3273
Template-Type: ReDIF-Article 1.0
Author-Name: Nafeesa Yunus
Author-X-Name-First: Nafeesa
Author-X-Name-Last: Yunus
Title: Commonalities across commercial real estate indexes
Abstract:
This study analyzes the long-run relationships and short-run dynamics of four commercial real estate indexes (NAREIT, NCREIF, CoStar and Green Street Advisors) to evaluate whether evidence of commonalities can be found across these indexes or whether they exhibit divergent behaviour over time. Evaluating a period beginning January 1998 and ending in December 2016, the findings indicate that each CRE index can be characterized as stochastic data generating processes. Further, evidence of statistically significant structural break is observed within each series, approximately towards the latter part of 2008. Multivariate analyses indicate that each index is integrated with one another and with economic indicators over the long-run. Next, macroeconomic shocks are imposed on each CRE index before and after the 2007–2009 housing crisis to analyse their behaviour over the short-run. Results indicate the reaction of each index from shocks to key economic indicators is similar although the NAREIT index reacts most vigorously while the NCREIF index responds least intensely. Finally, CRE shocks are imposed on each of the macro-economic indicators to evaluate whether the CRE indexes have a reciprocal impact. The findings suggest that each of the CRE indexes has a more pronounced effect on the economic indicators with the NAREIT index inducing the strongest response.
Journal: Applied Economics
Pages: 3274-3290
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1708256
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1708256
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Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3274-3290
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus S. Beckmann
Author-X-Name-First: Klaus S.
Author-X-Name-Last: Beckmann
Author-Name: Daniel Huerta-Sanchez
Author-X-Name-First: Daniel
Author-X-Name-Last: Huerta-Sanchez
Author-Name: Thanh N. Ngo
Author-X-Name-First: Thanh N.
Author-X-Name-Last: Ngo
Title: REIT industry liquidity, valuation, and ownership reactions to ETF inceptions
Abstract:
We examine the impact of Real Estate Investment Trust (REIT) Exchange Traded Fund (ETF) inceptions on the valuation, ownership structure, and liquidity of the U.S. REIT market. We posit that the relative homogeneity and concentration of the REIT industry creates a strong interconnection among REITs, especially for events that involve a significant number of firms in the industry. Initial perusal of the data suggests that the scarce supply of REITs forces new funds to include, on average, 60% of all existing REITs in their portfolios thus shocking the industry as a result of fund creations. We find that REITs experience a significant increase in institutional ownership and in stock turnover upon ETF inceptions. Small REITs experience a positive valuation effect, a significant increase in number of shareholders, and a significant reduction in shadow cost, while large capitalization REITs experience a significant negative valuation effect. We attribute this result to portfolio rebalancing effects driven by the increased visibility and coverage of small REIT stocks as a consequence of fund inceptions. We additionally find that buy-and-hold abnormal returns are positive and significant for all REITs, suggesting a permanent impact of ETF inceptions on REIT valuations. Finally, we find that REIT ETF inceptions create permanent increases in volatility in the REIT industry.
Journal: Applied Economics
Pages: 3291-3307
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1708859
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1708859
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Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3291-3307
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin S. Nell
Author-X-Name-First: Kevin S.
Author-X-Name-Last: Nell
Title: Evaluating the conditional convergence hypothesis in the post-1989 globalization period
Abstract:
This paper finds that conditional convergence in per capita incomes, as a robust empirical regularity across countries, is absent in the post-1989 globalization era. The results show that conditional convergence is subject to some initial, returns-adjusted level of education, implying that it has become more challenging for developing countries to industrialize via technology catch-up from abroad. The lack of conditional convergence, together with the increasing importance of education, complements another strand of literature that provides evidence of growth-reducing structural change, a growing technology gap due to the skill-intensive nature of manufacturing, and their link to the premature deindustrialization phenomenon observed in many developing countries since 1990. To draw an explicit link between the lack of conditional convergence in the post-1989 period and the literature on premature deindustrialization, the analysis augments a Barro-type regression with the employment shares of manufacturing, agriculture and services. The results show that raising the employment share of manufacturing relative to agriculture and, especially, services, is the most effective way to induce conditional convergence and generate faster growth in per capita income. One implication of the lack of conditional convergence is that the growth accelerations observed in many developing economies since the late-1990s may not be sustainable.
Journal: Applied Economics
Pages: 3308-3326
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710451
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710451
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Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3308-3326
Template-Type: ReDIF-Article 1.0
Author-Name: Artatrana Ratha
Author-X-Name-First: Artatrana
Author-X-Name-Last: Ratha
Author-Name: Masoud Moghaddam
Author-X-Name-First: Masoud
Author-X-Name-Last: Moghaddam
Title: Remittances and the Dutch disease phenomenon: evidence from the bounds error correction modelling and a panel space
Abstract:
Remittances have grown in size and importance. They are also among the most stable inflows of scarce foreign exchange for the developing world. While such inflows can boost economic growth, they can also appreciate domestic currency and thus, hurt exports – an unintended side effect commonly referred to as ‘the Dutch-disease phenomenon (DDP).’ This paper adds to this growing literature by applying the bounds-testing approach to co-integration/error correction, as well as the panel modelling. The DDP has been explored using a reduced form model linking remittance inflows to the real exchange rate of major remittance destinations in the world during the past three decades. While the bounds-testing approach using country-specific data, point at the paucity of the DDP generally, in the utilized panel co-integrated space, its short-run presence is mixed, though its long-run evidence is quite apparent. Indeed, using the preferred random effect model, the findings tend to suggest that a 10% increase in the remittance/GDP ratio, significantly appreciates the real exchange rate by about 0.009 units. Such a finding is also in line with the long-run results of the bounds-testing algorithm.
Journal: Applied Economics
Pages: 3327-3336
Issue: 30
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1710452
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1710452
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Handle: RePEc:taf:applec:v:52:y:2020:i:30:p:3327-3336
Template-Type: ReDIF-Article 1.0
Author-Name: Dain Jung
Author-X-Name-First: Dain
Author-X-Name-Last: Jung
Author-Name: Do Won Kwak
Author-X-Name-First: Do Won
Author-X-Name-Last: Kwak
Author-Name: Hye-Jin Kim
Author-X-Name-First: Hye-Jin
Author-X-Name-Last: Kim
Author-Name: Minki Kim
Author-X-Name-First: Minki
Author-X-Name-Last: Kim
Title: An empirical investigation on the economic impact of shared patient information among doctors
Abstract:
This study investigates how an increase in patient information sharing among doctors impacts healthcare costs. To this end, we explore this impact through two mechanisms – the informative role of patient health conditions and the cross-monitoring role against doctor-driven induced healthcare demands. We utilize a unique policy intervention (a drug utilization review) introduced in 2009 in Korea that enables doctors to share outpatients’ prescription histories. Using difference-in-differences, we found that, when patient information is improved, there is a reduction in pharmaceutical spending. This result is especially true for those patients who have relatively weak information-sharing capabilities. Using data on the amount of antibiotics prescribed for the common cold, we find that a cross-monitoring of prescriptions among doctors reduces the amount of unnecessary prescriptions and thus healthcare spending.
Journal: Applied Economics
Pages: 3555-3573
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713984
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713984
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Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3555-3573
Template-Type: ReDIF-Article 1.0
Author-Name: Leo H. Kahane
Author-X-Name-First: Leo H.
Author-X-Name-Last: Kahane
Title: Determinants of County-Level Voting Patterns In the 2012 and 2016 Presidential Elections
Abstract:
County-level data are used to estimate the incumbent-party share of the two-party vote in the 2012 and the 2016 U.S. Presidential elections. Using a ‘seemingly unrelated estimation’ procedure the regression results for the two elections show that there were some clear differences in the size of marginal effects for several key covariates. For example, income inequality, the size of the black male and black female populations, the size of the Hispanic male population and percent of the population with a college degree all had significantly larger coefficients in 2016 than in 2012, producing a larger marginal effect in favour of the Democratic candidate’s vote share. On the other hand, counties with increased poverty rates and counties located on the periphery of urban centres had a significantly larger marginal effect favouring the Republican’s vote share in 2016 compared to 2012. Finally, the regression results show that the effects of third-party vote shares, though not statistically different across the two elections, had a positive impact on the Democratic vote share in both elections.
Journal: Applied Economics
Pages: 3574-3587
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713985
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713985
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Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3574-3587
Template-Type: ReDIF-Article 1.0
Author-Name: Jaebeom Kim
Author-X-Name-First: Jaebeom
Author-X-Name-Last: Kim
Author-Name: Jung-Min Kim
Author-X-Name-First: Jung-Min
Author-X-Name-Last: Kim
Title: Stock returns and mutual fund flows in the korean financial markets: a system approach
Abstract:
This paper investigates dynamic and causal relations between stock returns and mutual fund flows in Korea using a system method that utilizes information from the stock, bond, and money markets. For this purpose, we employ the Dynamic Seemingly Unrelated Regression, the Seemingly Unrelated Regression Error Correction Model, and two causality tests in a system method to account for cross-equation correlations among markets that have a close relationship with one another. Furthermore, we use the information in the variance-covariance matrix of residual to improve the efficiency of the statistical estimates. The empirical evidence from the system method indicates that fund flows do not respond to eliminate deviations from long-run equilibrium, and stock prices cause net fund flows in the Korean market, implying that investors move their money to the securities that yield higher returns to rebalance their investment portfolios in the short-run. Thus, our findings do not support the popular notion of mutual fund flows as the driving force behind rallies in the Korean financial markets.
Journal: Applied Economics
Pages: 3588-3599
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713986
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713986
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Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3588-3599
Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Pei-Chi Lii
Author-X-Name-First: Pei-Chi
Author-X-Name-Last: Lii
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Title: The linkage between life insurer spread behaviour and credit swap transaction: policyholder protection analysis
Abstract:
The paper develops a contingent claim model to evaluate the equity of a life insurer when the insurer could act as a protection buyer or a protection seller in a credit swap transaction market. The investment market and the life insurance market faced by the insurer are assumed to be imperfectly competitive in order to capture the insurer’s asset-leading or liability-reducing spread behaviour. This paper complements the insurance literature by analysing how the effects of credit swap transactions on insurer spread behaviour and policyholder protection, and how they might differ across various degrees of capital regulation, premature default risk, and profit-sharing participation. Our findings offer some useful insights for achieving the stability of the insurance system.
Journal: Applied Economics
Pages: 3600-3613
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1715337
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1715337
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Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3600-3613
Template-Type: ReDIF-Article 1.0
Author-Name: Chenxin Leng
Author-X-Name-First: Chenxin
Author-X-Name-Last: Leng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Jianjun Tang
Author-X-Name-First: Jianjun
Author-X-Name-Last: Tang
Author-Name: Zhongkun Zhu
Author-X-Name-First: Zhongkun
Author-X-Name-Last: Zhu
Title: ICT adoption and income diversification among rural households in China
Abstract:
Although the determinants of income diversification have been widely examined in the literature, little is known about whether and how information and communication technology (ICT) adoption affects household income diversification. To fill in this gap, this paper examines the impact of ICT adoption on income diversification among rural households in China, utilizing open-access data collected through the China Labour-force Dynamics Survey project. We employ a two-stage treatment effects model to address the potential selection bias issue associated with ICT adoption. The empirical results show that ICT adoption exerts a positive and statistically significant impact on income diversification. Further analyses reveal that ICT adoption is more beneficial to low-income rural households and those residing in eastern and central parts of China when it plays a role in diversifying rural income. Our findings suggest that improving rural education and infrastructure such as roads and broadband facilities can help enhance ICT adoption among rural households, which subsequently increases income diversification.
Journal: Applied Economics
Pages: 3614-3628
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1715338
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1715338
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Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3614-3628
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Fehim Cebeci
Author-X-Name-First: Ali Fehim
Author-X-Name-Last: Cebeci
Author-Name: Huseyin Ince
Author-X-Name-First: Huseyin
Author-X-Name-Last: Ince
Author-Name: Murat Anil Mercan
Author-X-Name-First: Murat Anil
Author-X-Name-Last: Mercan
Title: The intrinsic fallacy of market mechanism and private property rights in alleviating the tragedy of the commons
Abstract:
Economists’ solution to the tragedy of the commons relies on well-defined property rights and competitive market mechanism for limiting individuals’ self-serving, short-sighted actions that result in a dramatic depletion of the common resources. However, this solution implicates a serious threat in terms of sustainability. Recently, deterioration of genetic diversity reached alarming levels, mainly attributed to escalating economic pressure that obliges farmers to shift from local breeds towards more profitable and more productive industrial breeds. This study empirically examines the efficiency of the free market mechanism as a solution to the tragedy of the commons through a unique natural experiment in which a huge demand shock arises regarding sheep. Results robustly show that the free market mechanism can cope with even a very challenging demand shock through the adjustment of prices without any shortage of the commodity. However, this finding does not guarantee that such an outcome is sustainable over the very long term. Analysis of the growth rate of the local sheep breeds population and cross-breed sheep population shows that the trend is overwhelmingly in favour of cross-breeds, thus supporting concerns for a free market mechanism, intrinsically driving the extinction of local sheep breeds, an invaluable genetic resource.
Journal: Applied Economics
Pages: 3629-3636
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1716938
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1716938
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Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3629-3636
Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Abinzano
Author-X-Name-First: Isabel
Author-X-Name-Last: Abinzano
Author-Name: Luis Muga
Author-X-Name-First: Luis
Author-X-Name-Last: Muga
Author-Name: Rafael Santamaria
Author-X-Name-First: Rafael
Author-X-Name-Last: Santamaria
Title: The role of small bettors in price formation in betting exchanges
Abstract:
The presence of small bettors in betting exchanges generates mispricing, which can lead to exploitation by informed traders or result in permanent price deviations. This paper shows that mispricing from this source is also dependent upon variables of established relevance such as tournament round, the level of attention to the event, the volume of the betting, and bet type, further confirming these findings by means of cumulative accuracy profile (CAP) curves. It also offers evidence of the relevant role played by the type of device used to place the bet, whereby higher mispricing is observed in live bets placed via a mobile device, which appears to be associated with impulsive betting. This last finding could have practical implications for the regulation of the use of mobile devices to access gambling platforms.
Journal: Applied Economics
Pages: 3637-3650
Issue: 33
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1717427
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1717427
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Handle: RePEc:taf:applec:v:52:y:2020:i:33:p:3637-3650
Template-Type: ReDIF-Article 1.0
Author-Name: Yacine Hammami
Author-X-Name-First: Yacine
Author-X-Name-Last: Hammami
Title: Asset pricing in an Islamic economy
Abstract:
We define an Islamic economy as one with borrowing restrictions, no leverage, and no risk-free asset. We derive a consumption-based asset pricing model for this economy under standard preferences. We demonstrate that news to consumption growth is the main driver of Islamic financial markets, but the degree of borrowing constraints also affects the pricing of Islamic assets. Using Saudi Arabian data, simulations show that our model does a good job in matching the observed equity premium as well as the volatility of the market return. Our model implies that the price-dividend ratio predicts dividend growth, and as a result that prices are driven mainly by cash-flow news rather than by discount rate news. Empirical tests show that our model is consistent with the data.
Journal: Applied Economics
Pages: 3106-3122
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1706715
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1706715
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Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3106-3122
Template-Type: ReDIF-Article 1.0
Author-Name: Hong Min Chun
Author-X-Name-First: Hong Min
Author-X-Name-Last: Chun
Author-Name: Grace Il-Joo Kang
Author-X-Name-First: Grace Il-Joo
Author-X-Name-Last: Kang
Author-Name: Sang Ho Lee
Author-X-Name-First: Sang Ho
Author-X-Name-Last: Lee
Author-Name: Yong Keun Yoo
Author-X-Name-First: Yong
Author-X-Name-Last: Keun Yoo
Title: Corporate tax avoidance and cost of equity capital: international evidence
Abstract:
This study examines the association between firm’s tax avoidance activities and cost of equity capital across 17 countries. Consistent with the prior study based on the U.S. evidence, within strong investor protection countries, the extent of firm’s tax avoidance is negatively associated with its cost of equity capital. This result indicates that strong investor protection induces investors to perceive firm’s tax avoidance activities as the results of efficient tax planning to reduce tax liabilities. To the contrary, we find that the extent of firm’s tax avoidance is positively associated with its cost of equity capital within weak investor protection countries. This result suggests that investors impose equity risk premium on firm’s tax avoidance activities in weak investor protection countries, where agency conflicts prevail more on firm’s tax avoidance activities. As the first international study on the association between firm’s tax avoidance activities and its cost of equity capital, this study contributes to the literature by suggesting that such an association may vary across countries depending on the strength of investor protection within each country of domicile.
Journal: Applied Economics
Pages: 3123-3137
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1706716
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1706716
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Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3123-3137
Template-Type: ReDIF-Article 1.0
Author-Name: Metin Özdemir
Author-X-Name-First: Metin
Author-X-Name-Last: Özdemir
Title: The role of exchange rate in inflation targeting: the case of Turkey
Abstract:
The role of the exchange rates in emerging market economies that have adopted inflation targeting (IT) is a critical and contentious issue in the relevant literature. This article investigates whether an exchange rate-augmented Taylor rule describes the Central Bank of Republic of Turkey’s (CBRT) monetary policy. Covering the period from 2002:1 to 2017:8 it also explores possible nonlinearities in the reaction function of the CBRT by employing a Threshold Vector Autoregressive (TVAR) model. The linear estimation of the model highlighted the importance of the exchange rate in monetary policy under IT. The results of the nonlinear model indicate that the stance of monetary policy was asymmetric with respect to exchange rate movements during the conventional IT period. However, the asymmetric monetary policy stance disappeared in the aftermath of the Global Financial Crisis. Increasing considerations of financial stability undermined the asymmetric policy stance of the CBRT in the post-crisis period.
Journal: Applied Economics
Pages: 3138-3152
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1706717
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1706717
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Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3138-3152
Template-Type: ReDIF-Article 1.0
Author-Name: Kai Zhao
Author-X-Name-First: Kai
Author-X-Name-Last: Zhao
Author-Name: Mary O’Mahony
Author-X-Name-First: Mary
Author-X-Name-Last: O’Mahony
Author-Name: Amir Qamar
Author-X-Name-First: Amir
Author-X-Name-Last: Qamar
Title: Bridging the gap in creative economy and ICT research: a regional analysis in Europe
Abstract:
Following Florida’s seminal work on the ‘creative class’ there is a great deal of interest concerning whether creativity, as an input, is important for regional growth. Answering this question requires developing a production framework that can distinguish creativity from other inputs. With data from Europe, this paper integrates the concept of information and communications technology (ICT) and the creative class into a theoretical production function. Findings reveal that not only is there a positive and interactive relationship between creative workers and ICT, but the combination of creative workers and ICT leads to higher levels of GVA growth. Moreover, creative workers were found to have a larger impact on growth in comparison with traditional human capital measures (i.e. graduates). Thus, findings from this research suggest that the creative class should not only pay attention to socio-economic preferences of individuals, but it must include wider social resources, such as ICT.
Journal: Applied Economics
Pages: 3153-3166
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1706718
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1706718
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Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3153-3166
Template-Type: ReDIF-Article 1.0
Author-Name: Yinghua Ren
Author-X-Name-First: Yinghua
Author-X-Name-Last: Ren
Author-Name: Qing Guo
Author-X-Name-First: Qing
Author-X-Name-Last: Guo
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Wanming Ying
Author-X-Name-First: Wanming
Author-X-Name-Last: Ying
Title: The effects of economic policy uncertainty on China’s economy: evidence from time-varying parameter FAVAR
Abstract:
This article explores the effects of China’s economic policy uncertainty (EPU) on its fiscal policy, monetary policy and a wide range of macro-economic variables using a time-varying parameter FAVAR model. Based on monthly data from 07/2003 to 08/2017, the time-varying structure of the model allows us to capture the time-varying characteristics of the macro-economic variables and which channel is relevant. Empirical results reveal that the reaction of monetary and fiscal policies to EPU is highly asymmetric across macro-economic circumstances. Loose monetary and fiscal policies are adopted in response to EPU shocks during the financial crisis, while policies are moderately tightened after the crisis. The China Interbank Offered Rate (Chibor) responds more sensitively and severely than M2 to EPU shocks. Additionally, EPU shocks have a significant and negative impact on economic growth, consumption, exchange rates, bonds and the stock market, but showing a positive impact on credit, real estate and fixed asset investment (which might be due to China’s special economic market environment and the high investment return). The results indicate that EPU shocks significantly affect macroeconomic fundamentals through precautionary savings and financial market channels but lose their effectiveness through a ‘real options’ effect.
Journal: Applied Economics
Pages: 3167-3185
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707475
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707475
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Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3167-3185
Template-Type: ReDIF-Article 1.0
Author-Name: Neil Lawton
Author-X-Name-First: Neil
Author-X-Name-Last: Lawton
Author-Name: Liam A. Gallagher
Author-X-Name-First: Liam A.
Author-X-Name-Last: Gallagher
Title: The negative side of inflation targeting: revisiting inflation uncertainty in the EMU
Abstract:
This article tests the Friedman–Ball hypothesis for the European Monetary Union (EMU) countries, using a GARCH methodology. The empirical results show a positive relationship between inflation and inflation uncertainty, largely supportive of the Friedman–Ball hypothesis. Furthermore, the ECB’s price stability mandate is found to have asymmetric, if not limited, effects on inflation uncertainty since 1999, with the findings different for the so-called peripheral countries when compared to the core. For the majority of the EMU countries, shifts away from the 2% target served to increase inflation uncertainty. The credibility of the ECB since the financial crisis, in attempting to meet its 2% inflation target has seen inflation uncertainty increase for some, likely driven by inflation failing to re-anchor. Furthermore, recent periods of deflation are found to generate inflation uncertainty, with short-term price variability increasing in line with observed negative price growth for the majority of the EMU countries. The results are supportive of a U-shaped relationship between inflation and inflation uncertainty. Using spline techniques, we formally provide support for such a U-shaped relation where inflation uncertainty broadly increases below a certain threshold for each country’s inflation rate. Asymmetric effects across countries are found in the level of this threshold.
Journal: Applied Economics
Pages: 3186-3203
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707764
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707764
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Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3186-3203
Template-Type: ReDIF-Article 1.0
Author-Name: Petr Janský
Author-X-Name-First: Petr
Author-X-Name-Last: Janský
Title: The costs of tax havens: evidence from industry-level data
Abstract:
Multinational enterprises make use of tax havens to avoid paying corporate income taxes and this costs 100 billion USD and more in lost government revenue worldwide according to an increasing number of recent studies. None of those studies assigns these costs to industries. I aim to shed more light on this gap by using some of the best available industry-level US data to determine to what extent the location of the MNEs’ profit is aligned with the location of their economic activities. My first finding is that the most important tax havens for US multinational enterprises are the Netherlands, Ireland and Luxembourg (all EU member states). Second, I systematically identify the specific industries in specific tax havens responsible for the costs, which should be useful information for tax authorities aiming to reduce tax avoidance. Finally, I argue that the current data are not detailed enough to provide a reliable industry breakdown of the costs, but the prospect of combining input-output tables with forthcoming country-by-country data seems more promising.
Journal: Applied Economics
Pages: 3204-3218
Issue: 29
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1707765
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1707765
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Handle: RePEc:taf:applec:v:52:y:2020:i:29:p:3204-3218
Template-Type: ReDIF-Article 1.0
Author-Name: Li Liu
Author-X-Name-First: Li
Author-X-Name-Last: Liu
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: Qing Zeng
Author-X-Name-First: Qing
Author-X-Name-Last: Zeng
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Forecasting the aggregate stock market volatility in a data-rich world
Abstract:
In this article, we utilize the basic lasso and elastic net models to revisit the predictive performance of aggregate stock market volatility in a data-rich world. Motivated by the existing literature, we determine several candidate predictors that have 22 technical indicators and 14 macroeconomic and financial variables. Our out-of-sample results reveal several noteworthy findings. First, few macroeconomic and financial variables and most of technical indicators have superior performance relative to the benchmark model. Second, combination forecasts are able to significantly beat the benchmark and some signal predictors Third, the lasso and elastic models with all predictors can generate more accurate forecasts than the benchmark and some other predictors in both the statistical and economic sense. Fourth, the lasso and elastic models exhibit higher forecast accuracy during periods of expansions and recessions. Finally, our findings are robust to several tests, such as different forecasting windows, forecasting models, and forecasting evaluations.
Journal: Applied Economics
Pages: 3448-3463
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713291
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713291
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Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3448-3463
Template-Type: ReDIF-Article 1.0
Author-Name: Juerg Schweri
Author-X-Name-First: Juerg
Author-X-Name-Last: Schweri
Author-Name: Annina Eymann
Author-X-Name-First: Annina
Author-X-Name-Last: Eymann
Author-Name: Manuel Aepli
Author-X-Name-First: Manuel
Author-X-Name-Last: Aepli
Title: Horizontal mismatch and vocational education
Abstract:
Recent literature suggests that vocational education and training (VET) provides individuals with smoother transitions into the labour market but lower wages over the lifecycle, compared to general education. A possible mechanism explaining lower wages is horizontal mismatch, defined as a mismatch between the type of qualifications acquired by individuals and those required for their current job. Some studies have found higher mismatch wage penalties when individuals’ education is more specific, suggesting higher penalties for workers with VET. Therefore, we analyse horizontal mismatch in Switzerland, the country with the highest proportion of firm-based VET in the OECD. We use two measures from the Swiss Household Panel that cover different aspects of horizontal mismatch. While we find sizable mismatch wage penalties in OLS estimations, effects are small or insignificant in fixed-effects regressions. This holds for workers with vocational and general education background alike. We conclude that VET is more transferable than often assumed. We finish with recommendations on concept and methods for future analyses of horizontal mismatch.
Journal: Applied Economics
Pages: 3464-3478
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713292
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713292
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Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3464-3478
Template-Type: ReDIF-Article 1.0
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Muhammed Shahbaz
Author-X-Name-First: Muhammed
Author-X-Name-Last: Shahbaz
Author-Name: Mubariz Hasanov
Author-X-Name-First: Mubariz
Author-X-Name-Last: Hasanov
Title: Testing PPP hypothesis under temporary structural breaks and asymmetric dynamic adjustments
Abstract:
We test the empirical validity of the PPP proposition under temporary structural breaks and dynamic nonlinear adjustments. Although several testing procedures have recently been proposed in the existing literature to investigate stochastic properties of the series under gradual breaks and nonlinear adjustments, none of these tests are compatible with the PPP proposition. Therefore, we propose new testing procedures that restrict the break to be temporary while simultaneously allowing for asymmetric dynamic nonlinear adjustment towards equilibrium. Using these newly proposed tests, we test stationarity of real exchange rate of 24 OECD countries vis-à-vis USA, and find support in favour of PPP proposition in majority of the countries.
Journal: Applied Economics
Pages: 3479-3497
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713293
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713293
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Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3479-3497
Template-Type: ReDIF-Article 1.0
Author-Name: Gnel Gabrielyan
Author-X-Name-First: Gnel
Author-X-Name-Last: Gabrielyan
Author-Name: David R. Just
Author-X-Name-First: David R.
Author-X-Name-Last: Just
Title: Economic shocks and lottery sales: an examination of Maine State lottery sales
Abstract:
Most U.S. states earn significant amount of revenues from lottery sales. However, they are also criticized for promoting the lotteries because they have been seen as taking advantage of poor populations. The purpose of this study is to identify the impact of various economic factors on lottery sales by using zip-code level sales within the state of Maine. The results show that an increase of 1% in unemployment rate results in a 0.38% increase in draw lottery sales, but it has no significant impact on instant lottery sales. This highlights the importance of differentiating between two major types of lotteries.
Journal: Applied Economics
Pages: 3498-3511
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713294
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713294
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Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3498-3511
Template-Type: ReDIF-Article 1.0
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Author-Name: Majdi Karmani
Author-X-Name-First: Majdi
Author-X-Name-Last: Karmani
Author-Name: Rim Boussaada
Author-X-Name-First: Rim
Author-X-Name-Last: Boussaada
Title: Threshold effects in the patent-growth relationship: a PSTR approach for 60 developed and developing countries
Abstract:
This study analyzes whether there is a threshold effect in the innovation-growth relationship. Using data from the period 2008–2017, we perform an analysis using 60 countries in the whole sample and a split-sample analysis in which we separate developed countries (36) from developing countries (24). The results for the panel smooth transition regression (PSTR) model indicate that there is a threshold effect in the innovation-growth relationship. We find that below the threshold, the effect of innovation measured by the number of patents is not significant for developed and developing countries. However, surpassing the optimal threshold, the effect becomes positive only for the whole sample and developed countries. Furthermore, findings also indicate that research and development expenditure, domestic and foreign investments stimulate economic growth.
Journal: Applied Economics
Pages: 3512-3524
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713295
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713295
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Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3512-3524
Template-Type: ReDIF-Article 1.0
Author-Name: Tong Fu
Author-X-Name-First: Tong
Author-X-Name-Last: Fu
Author-Name: Zhongmei Wei
Author-X-Name-First: Zhongmei
Author-X-Name-Last: Wei
Author-Name: Ze Jian
Author-X-Name-First: Ze
Author-X-Name-Last: Jian
Title: The persistent institutional effect of liberal colonialism: evidence from China’s financial policies
Abstract:
The effect of liberal colonialism on the allocation of capital persists to this day. We exploit the colonial history of China during 1896-1911 with qualitative evidence to measure liberal colonialism. We document that liberal colonialism promotes the subsequent efficiency of financial policies on the capital allocation in 2004 through the quality of economic institutions.
Journal: Applied Economics
Pages: 3525-3537
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713296
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713296
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Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3525-3537
Template-Type: ReDIF-Article 1.0
Author-Name: Biyan Tang
Author-X-Name-First: Biyan
Author-X-Name-Last: Tang
Author-Name: Boniface Yemba
Author-X-Name-First: Boniface
Author-X-Name-Last: Yemba
Author-Name: Dongfeng Chang
Author-X-Name-First: Dongfeng
Author-X-Name-Last: Chang
Title: Divisia monetary aggregates and US GDP nowcasting
Abstract:
This article nowcasts US quarterly real GDP growth rate with dynamic factor model (DFM) using Divisia Monetary Aggregate Index, Divisia M1, M2, M3, and exploits information from a large, unbalanced panel data. GDP nowcasting is evaluating the current quarter GDP given the available economic data up to the point when the nowcasting is conducted. GDP data is published quarterly with a substantial lag, while many monetary and financial decisions are made at a higher frequency. Therefore, nowcasting GDP has become an increasingly important task for central banks. This article uses DFM to nowcast GDP, compares the nowcasting results from DFM with the simple sum monetary aggregate M1, M2, M3, to the Model with weighted corresponding Divisia Index, then calculates the contributions of the Divisia Monetary index to US GDP nowcasting.
Journal: Applied Economics
Pages: 3538-3554
Issue: 32
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2020.1713983
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1713983
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Handle: RePEc:taf:applec:v:52:y:2020:i:32:p:3538-3554
Template-Type: ReDIF-Article 1.0
Author-Name: André Gal Mountian
Author-X-Name-First: André Gal
Author-X-Name-Last: Mountian
Author-Name: Maria Dolores Montoya Diaz
Author-X-Name-First: Maria Dolores
Author-X-Name-Last: Montoya Diaz
Title: Effects of retirement on the health of elderly people in São Paulo, Brazil
Abstract:
This article assessed the effects of retirement on the health of elderly people living in São Paulo, the most populous Brazilian city, from 2000 to 2010. In the context of population ageing, the effects of retirement on the health of elderly people must be understood. Data on elderly people from the municipality of São Paulo were retrieved from the longitudinal database Health, Wellbeing and Ageing Study (SABE). Fixed-effect and instrumental-variable fixed-effect models were estimated to consider the possible simultaneity between the decision to retire and the health status of individuals. The results showed that retirement improves overall health and mobility of men, especially of less-educated workers. This finding suggests that setting a minimum retirement age in Brazil, which will postpone retirement, may worsen the health status of older workers, thereby increasing National Health Service costs. Therefore, this subject must be incorporated into the debates on pension reform in Brazil. In addition, and more generally, this article aims to contribute to the literature by investigating this issue in a developing country.
Journal: Applied Economics
Pages: 2991-3003
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1697797
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1697797
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Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:2991-3003
Template-Type: ReDIF-Article 1.0
Author-Name: Franz Ruch
Author-X-Name-First: Franz
Author-X-Name-Last: Ruch
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mampho P. Modise
Author-X-Name-First: Mampho P.
Author-X-Name-Last: Modise
Title: Forecasting core inflation: the case of South Africa
Abstract:
Underlying, or core, inflation is likely the most important variable for monetary policy. It is considered to be the optimal nominal anchor as it is stable, excludes relative price shocks, and reflects underlying trends in the behaviour of price-setters and demand conditions in the economy. Despite its importance, there is sparse literature on estimating and forecasting core inflation in South Africa, with the focus still on measuring it. This paper emphasizes predicting core inflation from time-varying parameter vector autoregressive models (TVP-VARs), factor-augmented VARs (FAVAR), and structural break models using quarterly data from 1981Q1 to 2013Q4. We use mean squared forecast errors (MSFE) and predictive likelihoods to evaluate the forecasts. In general, we find that (i) time-varying parameter models consistently outperform constant coefficient models (ii) small TVP-VARs outperform all other models; (iii) models with heteroscedastic errors do better than models with homoscedastic errors; and (iv) allowing for structural breaks does not improve the predictability of core inflation. Overall, our results imply that additional information on the growth rate of the economy and the interest rate is sufficient to forecast core inflation accurately, but the relationship between these three variables needs to be modelled in a time-varying fashion.
Journal: Applied Economics
Pages: 3004-3022
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1701181
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1701181
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Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3004-3022
Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Jaén-García
Author-X-Name-First: Manuel
Author-X-Name-Last: Jaén-García
Title: Tax-spend, spend-tax, or fiscal synchronization. A wavelet analysis
Abstract:
In this article, we use wavelet methodology to analyse the long-term relationship between spending and taxes. Unlike the standard methodology that utilizes unit roots and cointegration with or without structural breaks, the present method makes it possible to know the long-term evolution of variables (time series) and the possible delay or advance between these variables. Although we limited ourselves to studying the most recent period of 1980–2015, the results obtained reveal various alternatives and nearly perfect synchronization, with revenues perhaps slightly leading spending, which may be the result of recent budget restrictions instated in response to the economic recession.
Journal: Applied Economics
Pages: 3023-3034
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705238
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705238
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Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3023-3034
Template-Type: ReDIF-Article 1.0
Author-Name: Emily McDool
Author-X-Name-First: Emily
Author-X-Name-Last: McDool
Title: Ability grouping and children’s non-cognitive outcomes
Abstract:
The value of ability grouping is often debated despite being adopted in primary and secondary schools across the UK for the past 80 years. Setting is one form of ability grouping which is widely implemented in English schools; it involves dividing pupils from the same cohort into classes according to ability in a specific subject. While the existing evidence identifies a negative effect on cognitive outcomes, especially for low-ability pupils, little research has been undertaken to understand the impact of setting on non-cognitive outcomes. This paper provides the first evidence of the effect of setting on non-cognitive outcomes when utilizing a nationally representative sample of primary-aged pupils and adopting fixed effects and instrumental variable methodologies. For boys, setting in maths negatively impacts non-cognitive outcomes, driven by a worsening of internalizing behaviours. No evidence of a significant impact of lowest set placement on non-cognitive outcomes is identified.
Journal: Applied Economics
Pages: 3035-3054
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705239
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705239
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Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3035-3054
Template-Type: ReDIF-Article 1.0
Author-Name: Satish Kumar
Author-X-Name-First: Satish
Author-X-Name-Last: Kumar
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: I. D. Raheem
Author-X-Name-First: I. D.
Author-X-Name-Last: Raheem
Author-Name: Qiang Ji
Author-X-Name-First: Qiang
Author-X-Name-Last: Ji
Title: Dependence risk analysis in energy, agricultural and precious metals commodities: a pair vine copula approach
Abstract:
We apply pair vine copulas, specifically the C-vine and R-vine copulas, to examine the conditional multivariate dependence pattern/structure and R-vine copula-based value-at-risk (VaR) to assess financial portfolio risk. We examine the co-dependencies of 13 major commodity markets (which include three energy commodities, six agricultural commodities and four precious metals prices) from 2 January 2003 to 19 December 2016. Dividing our sample into three sub-periods, namely pre-GFC, GFC and post-GFC, we find that the dependencies among commodities undergo changes in a complex manner, changing in different financial conditions, and that the Student-t copula appears on the maximum number of occasions, especially during the GFC period, signifying the existence of fatter tails in the distributions of returns. We further show that the co-dependencies computed using R-vine copulas are best suited to compute the portfolio VaR during the considered time period.
Journal: Applied Economics
Pages: 3055-3072
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705240
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705240
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Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3055-3072
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Hanck
Author-X-Name-First: Christoph
Author-X-Name-Last: Hanck
Author-Name: Jan Prüser
Author-X-Name-First: Jan
Author-X-Name-Last: Prüser
Title: House prices and interest rates: Bayesian evidence from Germany
Abstract:
This study uses a Bayesian VAR (BVAR) to demonstrate that the recent boom in German house prices can be explained by falling interest rates and that higher interest rates are likely sufficient to stop the price increase. The latter suggests a potential drawback of the current monetary policy of the ECB. The BVAR’s prior information shrinks the model parameters towards a parsimonious benchmark in order to avoid overfitting the data. We use an empirical Bayes approach to select the informativeness of the prior. To choose relevant control variables, we use a Bayesian variable selection approach. In addition to impulse responses and variance decompositions, we use a Bayesian conditional forecast to test the hypothetical effect of an interest rate increase on house prices.
Journal: Applied Economics
Pages: 3073-3089
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705242
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705242
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Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3073-3089
Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Cantabene
Author-X-Name-First: Claudia
Author-X-Name-Last: Cantabene
Author-Name: Iacopo Grassi
Author-X-Name-First: Iacopo
Author-X-Name-Last: Grassi
Title: R&D cooperation in SMEs: the direct effect and the moderating role of human capital
Abstract:
We analyse the determinants of R&D cooperation for SMEs in Italy. We introduce in the literature human capital as one of the main determinants of R&D cooperation, concentrating on its moderating role, and specifically focusing on the high-tech sector. Using an extremely rich dataset, we improve the literature, building robust explanatory variables, and disaggregating the cooperation by partner. We find that human capital facilitates cooperation, but its moderating role depends on the type of disaggregation and/or the partner.
Journal: Applied Economics
Pages: 3090-3105
Issue: 28
Volume: 52
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2019.1705243
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1705243
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Handle: RePEc:taf:applec:v:52:y:2020:i:28:p:3090-3105
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Baltas
Author-X-Name-First: Nicholas
Author-X-Name-Last: Baltas
Author-Name: Mike G. Tsionas
Author-X-Name-First: Mike G.
Author-X-Name-Last: Tsionas
Author-Name: Konstantinos Baltas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Baltas
Title: Foreign direct investment in OECD countries: a special focus in the case of Greece
Abstract:
Foreign Direct Investment (FDI) is considered as an important instrument for economic development all over the world. The aim of this paper is to examine the FDI inflows determinants for 24 OECD countries. To this end we employ annual data from 1980 to 2012 for a series of potential FDI determinants that have been identified as the most important by the relevant literature. Our empirical strategy employs both the standard fixed effects panel as well as a dynamic panel approach. The empirical findings highlight the importance of market size, trade openness, unit labor cost, schooling, taxation, gross capital formation, institutional variables, and ROA/ROE as significant FDI determinants. In the case of the dynamic panel model those FDI inflows determinants are not uniform for all country groups. Additionally, the results indicate that corporate tax rates clearly affect FDI attractiveness. This finding is robust when testing different countries subgroups. The present study has important policy implications indicating the factors that host economies should place emphasis on in order to attract FDI inflows. Policy makers should not only pay attention to the corporate tax rate level but they should also design a simple, stable and transparent taxation system that minimizes the relevant business risk.
Journal: Applied Economics
Pages: 5579-5591
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488054
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488054
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Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5579-5591
Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Author-Name: Hai Lin
Author-X-Name-First: Hai
Author-X-Name-Last: Lin
Author-Name: Ping-Wen Sun
Author-X-Name-First: Ping-Wen
Author-X-Name-Last: Sun
Author-Name: Bin Yu
Author-X-Name-First: Bin
Author-X-Name-Last: Yu
Title: A reliable performance measure to differentiate China’s actively managed open-end equity mutual funds
Abstract:
We compare different fund performance measures to examine which performance measures can generate risk-adjusted returns between high ranked and low ranked China’s actively managed open-end equity mutual funds. Our results show that only the six-factor (five factors (market, size, b/m, profitability & Investment facotrs) plus a momentum factor) alpha as the performance measure meets the criteria. Separated by the six-factor alpha, better performing funds have a larger asset under management, a better past 6-month cumulative return, a better stock picking ability, and a higher percentage of hybrid funds. Through our sample period from July 2004 to December 2015, the highest ranked quintile funds generate a monthly risk-adjusted return of 0.24% more than the lowest ranked quintile funds and the six-factor alpha reliably selects a better fund portfolio in both bear and bull markets on the basis of both fund return and holding data. Furthermore, our results from fund trading data show that funds with the highest six-factor alpha rank demonstrate a better trading skill in bear markets, suggesting that those better performing funds exhibit their market timing and stock picking abilities when investors need them most.
Journal: Applied Economics
Pages: 5592-5603
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488055
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488055
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Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5592-5603
Template-Type: ReDIF-Article 1.0
Author-Name: Hsien-Yi Chen
Author-X-Name-First: Hsien-Yi
Author-X-Name-Last: Chen
Author-Name: Shu-Ling Yang
Author-X-Name-First: Shu-Ling
Author-X-Name-Last: Yang
Title: Contagion effects of sovereign credit rating revisions on the real economy: is it trade or finance?
Abstract:
We analyse the contagion effects of sovereign credit rating revisions on the real economy, with particular emphasis on the intensity of trade and finance channels. Our findings show that event countries that experienced rating revisions cause substantial contagion effects on the real output growth rates of nonevent countries. Nonevent countries with a high export ratio, high external debt levels, or those that are more dependent on common bank credit relative to other nonevent countries are more likely to be infected by event countries’ adverse credit shocks. The results remain after accounting for alternative real economy indicators, financial liberalization, financial crises, and economic development status.
Journal: Applied Economics
Pages: 5604-5619
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488056
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488056
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Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5604-5619
Template-Type: ReDIF-Article 1.0
Author-Name: Gregmar I. Galinato
Author-X-Name-First: Gregmar I.
Author-X-Name-Last: Galinato
Author-Name: You Zhou
Author-X-Name-First: You
Author-X-Name-Last: Zhou
Title: How a race to the bottom can make you fat
Abstract:
This article measures the effect of fiscal competition on obesity rates in the United States through education and health spending. We hypothesize that fiscal competition to attract firms results in lower business tax revenues and higher public infrastructure spending which crowds out education and health spending leading to an increase in obesity rates. We empirically test this hypothesis. We find that there is significant fiscal competition to attract firms. Next, we show that when business tax revenues are lowered and public infrastructure spending favouring businesses increased, public health and education spending declines and obesity rates significantly increase. Thus, fiscal competition significantly contributes to obesity rates through the education and health spending channel.
Journal: Applied Economics
Pages: 5620-5640
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488058
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488058
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Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5620-5640
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Author-Name: Amatul Razzaq Chaudhary
Author-X-Name-First: Amatul Razzaq
Author-X-Name-Last: Chaudhary
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad Hussain
Author-X-Name-Last: Shahzad
Title: Is energy consumption sensitive to foreign capital inflows and currency devaluation in Pakistan?
Abstract:
This study investigates the relationship between foreign capital inflows and energy consumption by incorporating economic growth, exports and currency devaluation in energy demand function for the case of Pakistan. The long-run and short-run effects are examined via ARDL bounds testing procedure. Foreign capital inflows and currency devaluation (economic growth and exports) decrease (increase) energy consumption in long-run. The results confirm a feedback effect between foreign capital inflows and energy consumption. These findings would be helpful to policy makers in designing comprehensive economic and energy policies for utilizing foreign capital inflows as a tool for optimal use of energy sources to enhance economic development in long run.
Journal: Applied Economics
Pages: 5641-5658
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488059
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488059
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Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5641-5658
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Wilson
Author-X-Name-First: Nicholas
Author-X-Name-Last: Wilson
Title: Targeted characteristics and use of socially marketed preventive health goods: evidence from condoms in sub-Saharan Africa
Abstract:
Social marketing is a popular method for allocating targeted publicly funded preventive health goods in poor countries. However, low demand among targeted groups may inhibit take-up relative to non-targeted groups, ownership may not result in use, and there exists little large-scale evidence on how use of socially marketed goods varies by targeted characteristics. I assemble national household survey data from 27 sub-Saharan African countries to examine how use of one of the most common socially marketed preventive health goods (i.e. male condoms) varies by the main targeted characteristics (i.e. low income, low educational attainment, and high HIV risk).The results suggest that the majority of condoms used are socially marketed condoms, engaging in transactional sex is associated with an increased likelihood of using a socially marketed condom brand, and low-income/low educational attainment are not associated with increased likelihoods of using socially marketed brands. The fact that distribution targets low socioeconomic status groups and relative use remains low suggests that weak demand for condoms among these groups inhibits use. Policymakers should consider mechanisms to increase demand and to further refine targeting efforts.
Journal: Applied Economics
Pages: 5659-5671
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1488060
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1488060
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Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5659-5671
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt A. Hafner
Author-X-Name-First: Kurt A.
Author-X-Name-Last: Hafner
Author-Name: Lennart Kampe
Author-X-Name-First: Lennart
Author-X-Name-Last: Kampe
Title: Monetary union in Latin America: an assessment in the context of optimum currency area
Abstract:
The article applies the optimum currency area (OCA) theory to Latin America to assess the potential of a monetary union in Latin America and in its major existing regional trade agreements (RTAs). According to OCA criteria we find that Latin America is far from being an optimum currency area, as its countries’ exposure to asymmetric shocks is high and their capacities to adjust in response to macroeconomic disturbances are limited. Using a panel of 20 Latin American countries from 1990 to 2014, we apply the dynamic OLS estimation techniques to estimate the costs and benefits of a potential monetary union in Latin America and in its various RTAs. to estimate the costs and benefits of a potential monetary union in Latin America and in its various RTAs. We find that the costs are high, because Latin America’s economies are vulnerable to severe macroeconomic disturbances and its RTAs differ significantly in their response to negative demand shocks. Most of the monetary efficiency gains are shown to be the result of a common restrictive monetary policy which would result in higher FDI inflows and, to a more limited extent, increased GDP, both overall and per capita. Although Central American countries are shown to be most suitable for further monetary integration, we conclude that Latin American countries should head first towards greater economic and political integration.
Journal: Applied Economics
Pages: 5672-5697
Issue: 52
Volume: 50
Year: 2020
Month: 6
X-DOI: 10.1080/00036846.2018.1489116
File-URL: http://hdl.handle.net/10.1080/00036846.2018.1489116
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Handle: RePEc:taf:applec:v:50:y:2020:i:52:p:5672-5697
Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Mabruk Billah
Author-X-Name-First: Mabruk
Author-X-Name-Last: Billah
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Russell Gregory-Allen
Author-X-Name-First: Russell
Author-X-Name-Last: Gregory-Allen
Title: Economic uncertainties, macroeconomic announcements and sukuk spreads
Abstract:
With the large expansion of Islamic finance in the recent years, sukuks (Islamic bonds), which are the Shariah-compliant substitute to conventional bonds, are now becoming more prominent. Although there are numerous studies that have looked at the impact of global shocks on conventional bond spreads, little attention has been paid to explore the effect of the global shocks to the sukuk spreads. This study’s objective was thus to examine the impact of factors affecting the conventional bond and sukuk markets, including financial factors, economic policy uncertainty, U.S. and EU macroeconomic news, using an ordinary least squares approach. The results indicated that for regions and countries such as the GCC (Gulf Cooperation Council), Malaysia, Indonesia, Turkey, and Singapore, global shocks play a vital role in explaining sukuk spreads. Furthermore, employing a matched sample featuring firms from these regions and countries revealed that European and U.S. macroeconomic announcements and economic policy uncertainty have a significantly greater impact on sukuk spreads than on conventional bond spreads.
Journal: Applied Economics
Pages: 3748-3769
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1721424
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1721424
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Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3748-3769
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Yu Paula Hao
Author-X-Name-First: Jong-Yu Paula
Author-X-Name-Last: Hao
Author-Name: Jasmine Yur-Austin
Author-X-Name-First: Jasmine
Author-X-Name-Last: Yur-Austin
Author-Name: Lu Zhu
Author-X-Name-First: Lu
Author-X-Name-Last: Zhu
Title: Credit default swaps and CEO compensation: a long-term perspective
Abstract:
In this paper, we examine whether the onset of credit default swaps (CDSs) affects a firm’s executive compensation. The availability of CDSs allows lenders to transfer credit risk, but not control or monitoring rights, to CDS sellers. Hence, CDS-protected lenders’ incentives to monitor borrowing firms are curtailed, which could exacerbate the managerial agency problem. To mitigate the concern about the increased agency problem, we postulate that shareholders are more likely to demand greater long-term compensation for CEOs to compensate for their reduced ability to delegate monitoring to CDS-protected lenders. Consistent with our hypothesis, we find a positive CDS-incentive horizon relationship. Moreover, the positive relationship is more pronounced for institutional investors who have stronger incentives for monitoring. This study contributes to the literature by examining the impact of CDSs on executive compensation design, which has been largely overlooked in prior research.
Journal: Applied Economics
Pages: 3770-3787
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722793
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722793
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Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3770-3787
Template-Type: ReDIF-Article 1.0
Author-Name: En-Ze Wang
Author-X-Name-First: En-Ze
Author-X-Name-Last: Wang
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: Dynamic spillovers and connectedness between oil returns and policy uncertainty
Abstract:
This article investigates the dynamic connectedness and spillover effects between category policy uncertainty and WTI crude oil returns for oil-importing countries. To overcome the shortcomings of the traditional rolling-window method and obtain rigorous results, we adopt the TVP-VAR-based connectedness approach, apply it to full samples, and then estimate the dynamic spillovers between the series. Regarding the whole sample, the results reveal that economic policy uncertainty is as a net transmitter, and by employing four categorical policy uncertainty indices we reach the same conclusions. In particular, spillovers of fiscal policy uncertainty on crude oil returns are the most dominant ones, followed by exchange rate policy uncertainty, then monetary policy uncertainty, and finally trade policy uncertainty. And it is noteworthy that the network plots are employed by our article, which provides clearer evidence for the connectedness between variables. On a final note, Brent crude oil returns are utilized to increase the robustness of our conclusion.
Journal: Applied Economics
Pages: 3788-3808
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722794
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722794
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Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3788-3808
Template-Type: ReDIF-Article 1.0
Author-Name: Srikant Devaraj
Author-X-Name-First: Srikant
Author-X-Name-Last: Devaraj
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Title: Student debt, income-based repayment, and self-employment: evidence from NLSY 1997 and NFCS 2015
Abstract:
Based on the income-risk hypothesis, we test whether those with higher student debt are less likely to be self-employed. We also test if the income-based repayment programme increases the odds of self-employment. Using a longitudinal sample of 6,762 participants (1998–2011) in National Longitudinal Survey of Youth 1997 (NLSY97) and propensity score matching, we find that having student debt decreases the odds of self-employment by 1.3 percentage points. Further, using eligibility for income-based repayment programme as an instrument driving effect of loans in NLSY97 sample or use of income-based repayment plans in National Financial Capability Study 2015 increases the odds of self-employment of about 2 percent. The effect sizes are smaller than previous studies on student loans on labour market outcomes.
Journal: Applied Economics
Pages: 3809-3829
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722795
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722795
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Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3809-3829
Template-Type: ReDIF-Article 1.0
Author-Name: Theodoros Makridakis
Author-X-Name-First: Theodoros
Author-X-Name-Last: Makridakis
Author-Name: Sotiris Karkalakos
Author-X-Name-First: Sotiris
Author-X-Name-Last: Karkalakos
Title: Spatial hedonic models for environmental hazards and health outcomes
Abstract:
This article examines the relationship between the total cost of services for radioprotection and the health outcomes in Greece with a spatial hedonic model using data from the period 2010 to 2016. We employ spatial analysis in a hedonic price framework to examine the impact of total service cost Nuts 1 level in Greece. We incorporate geographical as well as economic and health personnel effects in order to test for the existence and magnitude of interregional externalities including health-care expenditure, medical capital investment and examinations magnetic resonance imaging. Our findings robustly demonstrate that interregional externalities do matter for the regions of economic linkages implying strong cross-regional spillovers than geographical ones. Furthermore, we isolate the imprint of each service for radioprotection, provided by Greek Atomic Energy Commission, in order to detect the impact of each one in the total cost services. The results support that services for non-ionizing radiation have the strongest impact.
Journal: Applied Economics
Pages: 3830-3841
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722796
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722796
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Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3830-3841
Template-Type: ReDIF-Article 1.0
Author-Name: Nisreen Moosa
Author-X-Name-First: Nisreen
Author-X-Name-Last: Moosa
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Huy Pham
Author-X-Name-First: Huy
Author-X-Name-Last: Pham
Author-Name: Alastair Watson
Author-X-Name-First: Alastair
Author-X-Name-Last: Watson
Title: The origin of the US-China trade war
Abstract:
The ongoing trade war (or at least dispute) between the US and China has its roots in the early 2000s when American politicians and economists started complaining about the US trade deficit with China. Accusing China of wrong-doing, as far as the US trade deficit is concerned, is based on the three propositions that the yuan is undervalued against the dollar, that the trade deficit is caused by currency undervaluation, and that Chinese trade and exchange rate policies are illegal or at least immoral, designed to promote Chinese exports and obstruct imports. These propositions are examined critically, and empirical results are produced to show that the revaluation of the yuan and the imposition of tariffs will not produce the desired results.
Journal: Applied Economics
Pages: 3842-3857
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1722797
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1722797
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Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3842-3857
Template-Type: ReDIF-Article 1.0
Author-Name: Refk Selmi
Author-X-Name-First: Refk
Author-X-Name-Last: Selmi
Author-Name: Jamal Bouoiyour
Author-X-Name-First: Jamal
Author-X-Name-Last: Bouoiyour
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Author-Name: Youssef Errami
Author-X-Name-First: Youssef
Author-X-Name-Last: Errami
Title: Is there an effect of policy-related uncertainty on inflation? evidence from the United States under Trump
Abstract:
This study bridges the existing literature on the macroeconomic effects of policy-related uncertainty and the literature on inflation dynamics and provide fresh insights on the impacts of policy-related uncertainty under President Donald Trump -coming from unforeseen events and actions of decision makers- on unanticipated inflation changes. With the increasingly volatile environment, developing effective resilience plan and hedging practices against rising policy uncertainty become fundamental in designing sensible risk management strategies. This paper compares the inflation-hedging abilities of oil, renewable energy and major precious metals (gold, palladium, platinum and silver). Under Trump, both economic and monetary policy uncertainties seem important for the observed changes in inflation. In times of rising uncertainty, doubts rise about the ability and the commitment of policy makers to deliver on their promises. In other words, policy-related uncertainties distort the Federal Reserve’s monetary policy and harm its credibility. To reduce the costs of inflation surprises, an inflation-protecting asset allocation analysis is conducted. Gold and oil have proved to offer the most effective hedge against inflation under Trump and during periods of inflationary pressures.
Journal: Applied Economics
Pages: 3858-3873
Issue: 35
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1723786
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1723786
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Handle: RePEc:taf:applec:v:52:y:2020:i:35:p:3858-3873
Template-Type: ReDIF-Article 1.0
Author-Name: Chengzheng Li
Author-X-Name-First: Chengzheng
Author-X-Name-Last: Li
Author-Name: Yunyun Wang
Author-X-Name-First: Yunyun
Author-X-Name-Last: Wang
Title: Capital advantages: could colleges and universities located in Beijing City win more national social science fund projects?
Abstract:
This paper examines the relationship between the distance a college/university from Beijing city and the number of the National Social Science Fund projects it undertakes. We find that geographical location of a college/university is closely related to the number of National Social Science Fund projects it undertakes, and per hundred kilometres far away from Beijing city will result in a decrease of the number of projects by 0.24–0.50. In addition, colleges and universities located in Beijing city have significant advantages over those located in other places with more projects of 1.74–5.68. It is also shown that, for colleges and universities, especially for those top 100, the availability of high-speed railway to Beijing city significantly increases the probability of winning the National Social Science Fund projects.
Journal: Applied Economics
Pages: 4135-4145
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730754
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730754
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Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4135-4145
Template-Type: ReDIF-Article 1.0
Author-Name: Rami Galal
Author-X-Name-First: Rami
Author-X-Name-Last: Galal
Author-Name: Hoda El Enbaby
Author-X-Name-First: Hoda
Author-X-Name-Last: El Enbaby
Title: Inequality of opportunity in earnings and assets in Egypt
Abstract:
By most available measures, the level of inequality in the MENA region, including Egypt, is considered relatively low. This regularity applies to both inequality of outcomes as well as inequality of opportunity. This paper challenges this view. It argues specifically that circumstances beyond the control of individuals account for a larger share of inequality of opportunity when asset distribution is considered rather than the distribution of earnings, essentially because earnings are subject to measurement errors and idiosyncratic shocks. The paper tests this proposition by estimating the extent to which factors related to the circumstances a person is born into contribute to inequality of opportunity in earnings as well as asset ownership. The results show that circumstances account 26–32% of inequality of asset distribution, compared with only 8–10% of inequality of opportunity in earnings. The analysis further shows that the area of birth and fathers education level are the two most important circumstance factors contributing to inequality of opportunity, for both assets and earnings.
Journal: Applied Economics
Pages: 4146-4161
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1731409
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1731409
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Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4146-4161
Template-Type: ReDIF-Article 1.0
Author-Name: Margherita Carlucci
Author-X-Name-First: Margherita
Author-X-Name-Last: Carlucci
Author-Name: Carlotta Ferrara
Author-X-Name-First: Carlotta
Author-X-Name-Last: Ferrara
Author-Name: Kostas Rontos
Author-X-Name-First: Kostas
Author-X-Name-Last: Rontos
Author-Name: Ilaria Zambon
Author-X-Name-First: Ilaria
Author-X-Name-Last: Zambon
Author-Name: Luca Salvati
Author-X-Name-First: Luca
Author-X-Name-Last: Salvati
Title: The long breadth of cities: revisiting worldwide urbanization patterns, 1950–2030
Abstract:
A comparative analysis of population dynamics worldwide contributes to profile distinctive demographic and economic trajectories of urban growth, discriminating processes of settlement concentration or dispersion under sequential cycles of urbanization. However, a wide-ranging characterization of urban cycles based on demographic dynamics worldwide is still missing. The present work is aimed at filling such a gap analysing long-term changes (1950–2030) in annual population growth rate of 1691 urban agglomerations with more than 300,000 inhabitants in 74 world countries. Results of this study indicate that metropolitan growth worldwide was associated with largely variable rates of population growth, highly positive before 2000 and progressively reducing over recent decades. Despite important differences at continental (and country) scale, demographic expansion of urban agglomerations showed two contrasting phases with a break point in the 1980s denoting a progressive reduction in spatial heterogeneity of population growth rates and a moderate slowdown in demographic dynamics. Intensity of urban expansion and spatial heterogeneity in population growth rates across metropolitan agglomerations evidences a trade-off between fast and slow demographic dynamics. These findings can be better understood to support theories of sequential city growth, making a suitable contribution to policy making, especially in countries where urban population is expanding more rapidly.
Journal: Applied Economics
Pages: 4162-4174
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1731410
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1731410
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Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4162-4174
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Strobl
Author-X-Name-First: Eric
Author-X-Name-Last: Strobl
Author-Name: Bazoumana Ouattara
Author-X-Name-First: Bazoumana
Author-X-Name-Last: Ouattara
Author-Name: Sandrine Akassi Kablan
Author-X-Name-First: Sandrine Akassi
Author-X-Name-Last: Kablan
Title: Impact of hurricanes strikes on international reserves in the Caribbean
Abstract:
In this study, we investigate the impacts of hurricane shocks on the international reserves of Caribbean countries. To this end, we use a panel VARX (Vector Auto-Regressive, with exogenous variables) with monthly data that allow us to account for external shocks (hurricane strikes). Our results show that for the whole sample, an increase in foreign reserves a month after the strike was followed by a decrease 2 months later. The increase can be explained by remittances and emergency foreign aid granted by the International Monetary Fund. Dividing the sample into middle-income and high-income countries shows that the increase is mainly due to the latter. This outcome may not be surprising given that production in Caribbean high-income countries is mainly due to manufacturing, off-shore banking and natural resources exploitation, which are all non-weather dependent sectors, while the middle-income countries are mostly dependent on weather-prone agriculture and tourism.
Journal: Applied Economics
Pages: 4175-4185
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1731411
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1731411
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Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4175-4185
Template-Type: ReDIF-Article 1.0
Author-Name: Zhenxi Chen
Author-X-Name-First: Zhenxi
Author-X-Name-Last: Chen
Author-Name: Cuntong Wang
Author-X-Name-First: Cuntong
Author-X-Name-Last: Wang
Title: Speculative trading in Chinese housing market: a panel regression method
Abstract:
The major Chinese cities experienced dramatic increases in their house prices in the recent years. This paper derives the fundamental value of the housing markets based on the personal disposable income of individual cities. By controlling macroeconomic variables and government intervention, we detect speculative trading based on fundamental value and historical price movements. Fundamentalists expect house prices to converge to the fundamental values while chartists hold a momentum trading expectation. Further differentiating the cities into tier-1 and non-tier-1, the non-tier-1 cities are found to be subject to a risk of plummeting arising from the interaction terms between the fundamentalists and chartists.
Journal: Applied Economics
Pages: 4186-4195
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1733473
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733473
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Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4186-4195
Template-Type: ReDIF-Article 1.0
Author-Name: Tien-Muoi Le
Author-X-Name-First: Tien-Muoi
Author-X-Name-Last: Le
Author-Name: Chia-Nan Wang
Author-X-Name-First: Chia-Nan
Author-X-Name-Last: Wang
Author-Name: Han-Khanh Nguyen
Author-X-Name-First: Han-Khanh
Author-X-Name-Last: Nguyen
Title: Using the optimization algorithm to evaluate and predict the business performance of logistics companies–a case study in Vietnam
Abstract:
In the current market economy, it is important to evaluate and forecast the situation and business performance of enterprises to provide the necessary information for managers to plan for future use of resources. This study aims to evaluate and predict the business performance of logistics companies in Vietnam. The authors use the optimal algorithm in the data envelopment analysis (DEA) to evaluate the business efficiency of the companies in the years 2014–2017. In addition, the authors use Grey system theory to forecast business results and their future use during the period of 2018–2021. The research shows that Gemadept Corporation and Sea & Air Freight International use the their business resources effectively and as expected, and that these companies will continue to thrive in the future. This study provides a method to measure, evaluate, and forecast the business performance of the logistics companies. Managers and the government can rely on this approach for implementation and overall planning of logistics enterprises in the future.
Journal: Applied Economics
Pages: 4196-4212
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1733474
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733474
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Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4196-4212
Template-Type: ReDIF-Article 1.0
Author-Name: Angela Stefania Bergantino
Author-X-Name-First: Angela Stefania
Author-X-Name-Last: Bergantino
Author-Name: Giuseppe Di Liddo
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Di Liddo
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Title: Regression-based measure of urban sprawl for Italian municipalities using DMSP-OLS night-time light images and economic data
Abstract:
Night-time light can be used in order to evaluate the degree of urbanization and urban sprawl in a specific territory. In fact, at the local level, the lower the urban density, the higher the per-capita length of collector roads and the area covered by buildings and infrastructures. It follows that the lower the urban density, the higher the municipal luminosity. Urban sprawl is determinant in defining the mobility condition in a specific territory and the service and infrastructure needs. This paper uses regression analyses in order to estimate a ‘relative’ measure of urban sprawl that takes into account also demographic and economic characteristics. We apply this technique to a panel of Italian municipalities over the period 2004–2012 and compare the resulting measure to the ‘absolute’ measures provided by the Italian Institute for Environmental Protection and Research in order to evaluate the contribution of our measure to the knowledge of the sprawl phenomenon.
Journal: Applied Economics
Pages: 4213-4222
Issue: 38
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1733475
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733475
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Handle: RePEc:taf:applec:v:52:y:2020:i:38:p:4213-4222
Template-Type: ReDIF-Article 1.0
Author-Name: Yang Song
Author-X-Name-First: Yang
Author-X-Name-Last: Song
Author-Name: Wolfram Elsner
Author-X-Name-First: Wolfram
Author-X-Name-Last: Elsner
Author-Name: Zhiyuan Zhang
Author-X-Name-First: Zhiyuan
Author-X-Name-Last: Zhang
Author-Name: Ron Berger
Author-X-Name-First: Ron
Author-X-Name-Last: Berger
Title: Collaborative innovation and policy support: the emergence of trilateral networks
Abstract:
The present article models the critical factors for a successful and evolutionarily stable National System of Innovation. We simulate a model, against the background of increasingly complex technologies, in a national process of agents’ interactions with social-dilemma characteristics. In particular, the articleinvestigates the emergence of a trilateral collaborative innovation alliance among ‘enterprise’, ‘university’ and ‘government’. We apply a tripartite evolutionary game with a replication process and explore the role and options of the public policy agent to support collaboration on innovation. We find that some policy mix, in particular, a combination of (1) public rewards for cooperation, (2) public punishment for non-cooperation and (3) settings of public cost controls and tax income from innovation, can promote broad and sustainable innovation alliances. For instance, threats of strong punishment, even with low public rewards for cooperation, may promote the formation of a collaborative innovation alliance. We run some sensitivity analyses of the results through parametric variation of two critical factors of the model, knowledge spillover and output elasticity of knowledge input. We find some qualifications for the velocity of the process.
Journal: Applied Economics
Pages: 3651-3668
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2019.1708254
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1708254
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Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3651-3668
Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Alejandro Romo-Muñoz
Author-X-Name-First: Rodrigo Alejandro
Author-X-Name-Last: Romo-Muñoz
Author-Name: Rodrigo Monje-Sanhueza
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Monje-Sanhueza
Author-Name: Héctor Garrido-Henríquez
Author-X-Name-First: Héctor
Author-X-Name-Last: Garrido-Henríquez
Author-Name: José M Gil
Author-X-Name-First: José M
Author-X-Name-Last: Gil
Title: Key market values for bottled wine in an emerging market: product attributes or business strategy?
Abstract:
This article focuses on the emerging bottled Chilean red wine market and studies the main determinants of the consumer price of wine sold on the domestic market. A hedonic price function was estimated for a sample of 810 wines using a quantile regression (QR) model. The database contains three variable groups to explain price: objective variables (national, international and vine quality designations), subjective variables (wine score) and business strategies used by wine producers. Results show that some objective variables have a greater impact on price than the wine score (a subjective variable) and business strategies, which vary for each quartile of prices analysed. Finally, this information will allow companies to design and implement marketing strategies to inform the consumer about the importance of some variables in the price of their product.
Journal: Applied Economics
Pages: 3669-3679
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1717428
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1717428
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Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3669-3679
Template-Type: ReDIF-Article 1.0
Author-Name: Yuqin Huang
Author-X-Name-First: Yuqin
Author-X-Name-Last: Huang
Author-Name: Haoran Zhang
Author-X-Name-First: Haoran
Author-X-Name-Last: Zhang
Title: Does individual investors’ attention influence underwriters’ IPO pricing?
Abstract:
Using a unique Chinese IPO bidding dataset and a particular social media dataset, we examine the impact of individual investors’ attention on underwriters’ offer price adjustment, offer price revision, IPO initial returns, and long-term performance. We find that when a company receives more attention from individual investors before the underwriter finalizes the offer price, the underwriter will adjust the offer price higher. Moreover, we find that the IPO initial returns are significantly positively related to individual investors’ attention. These findings suggest that individual investors will influence underwriters’ pricing behaviour from a new perspective, – –investors’ attention. Finally, we do not find a significant relationship between individual investors’ attention and IPO long-run performance.
Journal: Applied Economics
Pages: 3680-3687
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1720904
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1720904
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Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3680-3687
Template-Type: ReDIF-Article 1.0
Author-Name: Sungmun Choi
Author-X-Name-First: Sungmun
Author-X-Name-Last: Choi
Title: Do interest groups reward politicians for their votes in the legislature? Evidence from the great recession
Abstract:
Interest groups lobby politicians in various ways to influence their policy decisions, especially, their voting decisions in the legislature. Most, if not all, of the studies on this issue examine ”pre-vote” lobbying activities of interest groups that occur before politicians vote in the legislature. In this paper, however, I examine ”post-vote” lobbying activities of interest groups that occur after politicians vote in the legislature. By using data on the amount of monetary contributions given by interest groups to the members of the U.S. House of Representatives who have served in the 109th (2005–06) through 111th (2009–10) Congress, I find evidence that voting in favour of the Emergency Economic Stabilization Act (EESA) of 2008, one of the most significant pieces of legislation and possibly the biggest government bailout in U.S. economic history, has increased the amount of monetary contributions that politicians receive from the interest groups in the financial sector after the passage of the EESA. I also discuss two reasons for such post-vote lobbying and find empirical evidence for one of them.
Journal: Applied Economics
Pages: 3688-3699
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1720905
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1720905
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Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3688-3699
Template-Type: ReDIF-Article 1.0
Author-Name: Duncan Grimson
Author-X-Name-First: Duncan
Author-X-Name-Last: Grimson
Author-Name: Stephen Knowles
Author-X-Name-First: Stephen
Author-X-Name-Last: Knowles
Author-Name: Philip Stahlmann-Brown
Author-X-Name-First: Philip
Author-X-Name-Last: Stahlmann-Brown
Title: How close to home does charity begin?
Abstract:
This paper uses a field experiment to analyse the extent to which people are more inclined to support a charity focused on people or causes in their own region, compared to regions in other parts of the country. New Zealand landowners were incentivized to take part in an online survey by being told they could choose a charity from a list of four that would receive a $10 donation if they completed the survey. Importantly, the charities are based in different regions of the country. We find evidence of a significant declining radius of altruism: not only do people prefer to support charities in their own area, the further away a charity is located, the less likely people are to support it. These findings highlight the importance of geographic distance (independent of social distance) in charitable giving.
Journal: Applied Economics
Pages: 3700-3708
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1720906
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1720906
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Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3700-3708
Template-Type: ReDIF-Article 1.0
Author-Name: Hui Jiang
Author-X-Name-First: Hui
Author-X-Name-Last: Jiang
Author-Name: Caiyun Liu
Author-X-Name-First: Caiyun
Author-X-Name-Last: Liu
Title: Economic policy uncertainty, CEO characteristics and firm R&D expenditure: a Bayesian analysis
Abstract:
This paper applies a linear Bayesian regression model to study the effects of economic policy uncertainty (EPU) and Chief Executive Officer (CEO) characteristics on firm Research and Development (R&D) expenditure. We specifically analysed data from 1,163 Chinese companies listed as A-shares from 2008–2016. EPU is believed to curtail firm investments as it causes unexpected market conditions. Yet, our findings obtained with Bayesian analysis show a positive relationship between EPU and firm R&D expenditure. Specifically, we found that some CEO attributes (e.g., age, tenure and marketing/sales experience) led to a negative relationship between EPU and firm R&D expenditure, whereas other attributes (e.g., education, overseas study/work experience, product R&D experience, and process engineering experience) lead to a positive relationship. Our findings provide nuanced insights into how different CEO characteristics influence firms’ R&D expenditure in a context of uncertainty.
Journal: Applied Economics
Pages: 3709-3731
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1721422
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1721422
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Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3709-3731
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Behrens
Author-X-Name-First: Christoph
Author-X-Name-Last: Behrens
Title: Evaluating the joint efficiency of German trade forecasts - a nonparametric multivariate approach
Abstract:
I analyse the joint efficiency of export and import forecasts by leading economic research institutes for the years 1970 to 2017 for Germany in a multivariate setting. To this end, I compute, in a first step, multivariate random forests in order to model links between forecast errors and a forecaster’s information set, consisting of several trade and other macroeconomic predictor variables. I use the Mahalanobis distance as performance criterion and, in a second step, permutation tests to check whether the Mahalanobis distance between the predicted forecast errors for the trade forecasts and actual forecast errors is significantly smaller than under the null hypothesis of forecast efficiency. I find evidence for joint forecast inefficiency for two forecasters, however, for one forecaster I cannot reject joint forecast efficiency. For the other forecasters, joint forecast efficiency depends on the examined forecast horizon. I find evidence that real macroeconomic variables as opposed to trade variables are inefficiently included in the analysed trade forecasts. Finally, I compile a joint efficiency ranking of the forecasters.
Journal: Applied Economics
Pages: 3732-3747
Issue: 34
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1721423
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1721423
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Handle: RePEc:taf:applec:v:52:y:2020:i:34:p:3732-3747
Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Richard O. Olayeni
Author-X-Name-First: Richard O.
Author-X-Name-Last: Olayeni
Author-Name: Yu-Cheng Chang
Author-X-Name-First: Yu-Cheng
Author-X-Name-Last: Chang
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: The hydroelectricity consumption and economic growth in Asian countries - evidence using an asymmetric cointegration approach
Abstract:
This study examines the four commonly tested hypotheses in hydroelectricity consumption – economic growth literature for 12 Asian countries. Our results from a recently developed hidden cointegration technique uncover rich and significant relationships between negative and positive components of the variables under consideration. In particular, we find evidence to support the neutrality hypothesis in five countries (Bangladesh, Indonesia, Pakistan, Philippines, and Thailand), the growth hypothesis in four countries (India, Japan, South Korea and Taiwan), and both growth and conservation hypotheses in three countries (China, Malaysia, and New Zealand). These findings suggest that appropriate economic policies should be elaborated on the basis of the country’s specific hydroelectricity consumption–growth nexus. Finally, our new evidence suggests that the lack of stable relationship between hydroelectricity consumption and economic growth documented in previous studies for some of these countries could be due to the failure to properly account for the nonlinearity property in the data.
Journal: Applied Economics
Pages: 3999-4017
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730755
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730755
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Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:3999-4017
Template-Type: ReDIF-Article 1.0
Author-Name: Rafik Abdesselam
Author-X-Name-First: Rafik
Author-X-Name-Last: Abdesselam
Author-Name: Jean Bonnet
Author-X-Name-First: Jean
Author-X-Name-Last: Bonnet
Author-Name: Patricia Renou-Maissant
Author-X-Name-First: Patricia
Author-X-Name-Last: Renou-Maissant
Title: What are the drivers of business demography and employment in the countries of the European Union?
Abstract:
The aim of this contribution is to establish a typology of European entrepreneurship countries with respect to variables related to entrepreneurial activity and economic development. Using a combination of multidimensional data analyses allows us to extend the concept of ‘entrepreneurial regimes’ and leads to the distinction of five such entrepreneurial regimes. Moreover, in order to better characterize these classes, a wide set of illustrative variables representative of national economic development, labour market functioning, and formal and informal institutional environments, as well as variables specific to the entrepreneurial population, are considered. Finally, discriminant analyses show that the five explanatory themes considered (Innovation, Employment, Formal Institutions, Entrepreneurship and Governance) differentiate the classes, and significantly explain the diversity of entrepreneurial regimes. These findings have important implications for the implementation of public policy, in order to promote entrepreneurial activity and reduce unemployment.
Journal: Applied Economics
Pages: 4018-4043
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730756
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730756
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Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4018-4043
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Chang
Author-X-Name-First: Xiao
Author-X-Name-Last: Chang
Author-Name: Guoqiang Li
Author-X-Name-First: Guoqiang
Author-X-Name-Last: Li
Author-Name: Xinhua Gu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Gu
Author-Name: Chunyu Lei
Author-X-Name-First: Chunyu
Author-X-Name-Last: Lei
Title: Does the inequality-credit-crisis nexus exist? An empirical re-examination
Abstract:
Rajan claims that rising inequality led to financial crises through credit booms in the U.S. Kumhof and Ranciere provide a theoretical formulation for this hypothesis. However, their assertions are not supported by cross-country evidence found in the work of Bordo and Meissner. A few subsequent empirical studies, albeit inspired by this pioneering work, find new evidence not in line with its conclusion but with the Rajan hypothesis. To clarify this controversial issue, we base our study on the B-M framework, resort to different estimators, and employ more model specifications by incorporating the role of deindustrialization. We find strong evidence for the inequality-credit-crisis nexus as modelled by Kumhof et al.
Journal: Applied Economics
Pages: 4044-4057
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730757
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730757
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Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4044-4057
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Claudia Sant’Anna
Author-X-Name-First: Ana Claudia
Author-X-Name-Last: Sant’Anna
Author-Name: Ani L. Katchova
Author-X-Name-First: Ani L.
Author-X-Name-Last: Katchova
Title: Determinants of land value volatility in the U.S. Corn Belt
Abstract:
Understanding land value volatility and its reaction to exogenous shocks helps land owners, investors, and lenders assess risk. Land value volatility, the variance of the unpredictable component of land value growth rates, is modelled for each of the Corn Belt states in the U.S. using EGARCH. A pooled VAR system is then estimated to capture the interactions between land value determinants and land value volatility. The variables of the pooled VAR are split into negative and positive vectors to allow for asymmetric impacts. Impulse response functions are mapped. All states exhibit land value volatility clustering. Inflation, cash rent and population growth rates granger cause land value volatility. Land value volatility responses to negative shocks are greater than those to positive shocks. Lenders and investors should expect greater swings in land values after negative shocks to land value growth rates, but not an overreaction of land values from shocks to cash rent growth rates. Positive shocks to changes in interest rates increases land value volatility, but unexpected shocks to population growth rates do not have statistically significant impact on land value volatility.
Journal: Applied Economics
Pages: 4058-4072
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730760
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730760
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Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4058-4072
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Valentin Lenz
Author-X-Name-First: Marc Valentin
Author-X-Name-Last: Lenz
Author-Name: Sascha L. Schmidt
Author-X-Name-First: Sascha L.
Author-X-Name-Last: Schmidt
Author-Name: Dominik Schreyer
Author-X-Name-First: Dominik
Author-X-Name-Last: Schreyer
Title: The impact of personality traits on talents’ performance throughout development phases: empirical evidence from professional football
Abstract:
This paper addresses a critical gap in talent management research, i.e. the question of what determines high performance, by highlighting the importance of personality traits for the performance of talents who are trained within the strong situation of a pivotal talent pool – – the talent pool, of a German Bundesliga club. The findings illustrate the ubiquitous high level of certain personality traits among pivotal talents, their limited variance inter talent development phases as well as their significant impact on talent performance. As a complement to talents’ job-specific skill level, the personality facet of self-confidence is a consistent driver of overall performance, with resilience and job-specific creativity being essential in order to perform above peer-group level.
Journal: Applied Economics
Pages: 4073-4091
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730761
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730761
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Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4073-4091
Template-Type: ReDIF-Article 1.0
Author-Name: Edward I. Altman
Author-X-Name-First: Edward I.
Author-X-Name-Last: Altman
Author-Name: Małgorzata Iwanicz-Drozdowska
Author-X-Name-First: Małgorzata
Author-X-Name-Last: Iwanicz-Drozdowska
Author-Name: Erkki K. Laitinen
Author-X-Name-First: Erkki K.
Author-X-Name-Last: Laitinen
Author-Name: Arto Suvas
Author-X-Name-First: Arto
Author-X-Name-Last: Suvas
Title: A Race for Long Horizon Bankruptcy Prediction
Abstract:
This study compares the accuracy and efficiency of five different estimation methods for predicting financial distress of small and medium-sized enterprises. We apply different methods for a large set of financial and non-financial variables, using filter and wrapper selection, to predict bankruptcy up to 10 years before the event in an open, European economy. Our findings show that logistic regression and neural networks are superior to other approaches. We document how the cost-return ratio considerably affects the location of optimal cut-off points and attainable profit in credit decisions. Once a loan provider selects a particular prediction model, an effort should be made to find the optimal cut-off score to maximize the efficiency of the technique. Indeed, this often involves determining several cut-off levels where the portfolio of products and services exhibits different cost-return characteristics.
Journal: Applied Economics
Pages: 4092-4111
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1730762
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1730762
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Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4092-4111
Template-Type: ReDIF-Article 1.0
Author-Name: Hung Quang Do
Author-X-Name-First: Hung Quang
Author-X-Name-Last: Do
Author-Name: M. Ishaq Bhatti
Author-X-Name-First: M. Ishaq
Author-X-Name-Last: Bhatti
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Title: Is ‘oil and gas’ industry of ASEAN5 countries integrated with the US counterpart?
Abstract:
This paper employs the VARMA-MGARCH-ABEKK model and Granger causality on 15 years’ daily time series data to examine investment opportunities in the oil and gas industries for ASEAN5 countries relative to the US counterpart. It shows that the latter leads the former in decomposing integration into cross-country effects on returns and conditional return volatilities. The empirical results show that investors can gain an international intra-industry diversification benefit in Malaysia, the Philippines, Singapore and Vietnam by holding US oil and gas assets in their portfolios whereas Asian oil and gas assets may result in negative shocks due to the increase in return volatilities for Malaysia, Singapore and Vietnam. However, Thailand are insensitive to the cross-country intra-industry diversification. While making trading decisions, investors should be aware of the impulse responses of ASEAN oil and gas markets from the shocks in the US and the Asian markets and their asymmetric spill over effects.
Journal: Applied Economics
Pages: 4112-4134
Issue: 37
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1731408
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1731408
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Handle: RePEc:taf:applec:v:52:y:2020:i:37:p:4112-4134
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Tiago Sequeira
Author-X-Name-First: Tiago
Author-X-Name-Last: Sequeira
Title: Tradable and nontradable directed technical change
Abstract:
We wish to reconcile the major trends in wages and the terms of trade using a directed technical change approach in which: (i) tradable and nontradable goods can be substitutes or complements; and (ii) scale effects can be present or can be partially or totally removed. With a lower skilled labour ratio and a higher relative wage in the tradable sector, the price (real exchange rate or terms of trade) mechanism is crucial in determining sectoral productivity differences and thus wage inequality. Along the balanced growth path, the real exchange rate can be negatively related with the relative productivities in horizontal innovation (the Balassa-Samuelson effect) and with the relative labour level, depending on scale effects. The wage premium increases due to an increase in the relative labour level in the nontradable sector under substitutability with scale effects or under complementarity without scale effects. A calibrated version of the model indicates that the model closely replicates the data for Germany. Moreover, while the Balassa-Samuelson effect is quantified, an increase in the relative supply of labour in the tradable sector decreases both terms of trade and inequality.
Journal: Applied Economics
Pages: 3874-3897
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1725233
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1725233
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Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3874-3897
Template-Type: ReDIF-Article 1.0
Author-Name: Yassine Bakkar
Author-X-Name-First: Yassine
Author-X-Name-Last: Bakkar
Author-Name: Clovis Rugemintwari
Author-X-Name-First: Clovis
Author-X-Name-Last: Rugemintwari
Author-Name: Amine Tarazi
Author-X-Name-First: Amine
Author-X-Name-Last: Tarazi
Title: Charter value, risk-taking and systemic risk in banking before and after the global financial crisis of 2007-2008
Abstract:
We investigate how bank charter value affects risk for a sample of OECD banks by using standalone and systemic risk measures before, during, and after the global financial crisis of 2007–2008. Prior to the crisis, bank charter value is positively associated with risk-taking and systemic risk for very large ‘too-big-too-fail’ banks and large U.S. and European banks but such a relationship is inverted during and after the crisis. A deeper investigation shows that such a behaviour before the crisis is mostly relevant for very large banks and large banks with high growth strategies. Banks’ business models also influence this relationship. We find that for banks following a focus strategy, higher charter value amplifies both standalone and systemic risk for large U.S. and European banks. Our findings have important policy implications and cast doubts on the relevance of the uniform more stringent capital requirements introduced by Basel III.
Journal: Applied Economics
Pages: 3898-3918
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1725234
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Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3898-3918
Template-Type: ReDIF-Article 1.0
Author-Name: Robert A. Buckle
Author-X-Name-First: Robert A.
Author-X-Name-Last: Buckle
Author-Name: John Creedy
Author-X-Name-First: John
Author-X-Name-Last: Creedy
Author-Name: Norman Gemmell
Author-X-Name-First: Norman
Author-X-Name-Last: Gemmell
Title: Is external research assessment associated with convergence or divergence of research quality across universities and disciplines? Evidence from the PBRF process in New Zealand
Abstract:
Performance-based research evaluations have been adopted in several countries both to measure research quality in higher education institutions and as a basis for the allocation of funding across institutions. Much attention has been given to evaluating whether such schemes have increased the quality and quantity of research. This paper examines whether the introduction of the New Zealand Performance-Based Research Fund process produced convergence or divergence in measured research quality across universities and disciplines between the 2003 and 2012 assessments. Two convergence measures are obtained. One, referred to as β-convergence, relates to the relationship between changes in average quality and the initial quality level. The second concept, referred to as σ-convergence, relates to the changes in the dispersion in average research quality over time. Average quality scores by discipline and university were obtained from individual researcher data, revealing substantial β- and σ-convergence in research quality over the period. The hypothesis of uniform rates of convergence across almost all universities and disciplines is supported. The results provide insights into the incentives created by performance-based funding schemes.
Journal: Applied Economics
Pages: 3919-3932
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1725235
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1725235
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Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3919-3932
Template-Type: ReDIF-Article 1.0
Author-Name: Shoude Li
Author-X-Name-First: Shoude
Author-X-Name-Last: Li
Author-Name: Susu Cheng
Author-X-Name-First: Susu
Author-X-Name-Last: Cheng
Author-Name: Dongdong Li
Author-X-Name-First: Dongdong
Author-X-Name-Last: Li
Title: Dynamic control of a monopolist’s product and process innovation with reference quality
Abstract:
Our main purpose is to investigate the dynamic control problem of a monopolist’s product and process innovation under reference quality. The main features of this article are: (i) a monopolist dealing with customer behaviour in the spirit of the principle of behaviour economics determines the product price, and carries out the activities of product and process innovation; (ii) the consumers’ demand depends on price, product quality and reference quality, and adopts an additive separable demand function form. Our main results show that under the cases of the monopolist optimum and the social planner optimum, (i) there exists an unique stable, which is a saddle-point steady-state equilibrium; (ii) the change rates of the monopolist’s investments in product and process innovation are increasing with the reference quality, while the monopolist’s steady-state investments in product and process innovation are decreasing with the reference quality; (iii) as the memory parameter increases with other parameters kept constant, it is very likely that the monopolist’s investment in process innovation be greater than the investment in product innovation; and (iv) the social incentive towards both investments in product and process innovation is always larger than the private incentive characterizing the profit-seeking monopolist.
Journal: Applied Economics
Pages: 3933-3950
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1725418
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1725418
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Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3933-3950
Template-Type: ReDIF-Article 1.0
Author-Name: Subhasree Basu Roy
Author-X-Name-First: Subhasree
Author-X-Name-Last: Basu Roy
Author-Name: Reed Neil Olsen
Author-X-Name-First: Reed Neil
Author-X-Name-Last: Olsen
Author-Name: Huikuan Tseng
Author-X-Name-First: Huikuan
Author-X-Name-Last: Tseng
Title: Do Hispanic immigrants spend less on medical care? Implications of the Hispanic health paradox
Abstract:
The literature of the Hispanic heath paradox has found that in the U.S. Hispanic immigrants have better health than U.S. natives, even though they tend to have lower socioeconomic status. The main objective of the current study is to investigate whether Hispanic immigrants also use less medical care goods and services. Main contributions of the article include using a data set of older Americans from the Health and Retirement Study covering the period from 1992 to 2012 as well as using three new measures of health, rather than the more common use of morbidity or mortality. We estimate the impact of relevant factors including health, race, and immigrant status upon five different measures of healthcare usage. Even though Hispanic immigrants do have lower mean levels of most measures of healthcare usage, when controlling for other factors in our regressions we find some evidence of increased healthcare usage for Hispanic immigrants. Increased health care utilization may be one explanation for the Hispanic health paradox.
Journal: Applied Economics
Pages: 3951-3964
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1726863
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726863
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Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3951-3964
Template-Type: ReDIF-Article 1.0
Author-Name: Ayhab F. Saad
Author-X-Name-First: Ayhab F.
Author-X-Name-Last: Saad
Title: The exceptional performance of exporters and labour market outcomes: evidence from Egyptian firms
Abstract:
This paper examines the manufacturing export market in Egypt after the Arab Spring using a novel firm-level census dataset from 2013. Export is very rare in Egypt. The conventional export premia are very high, except for total factor productivity. Exporters have stark effects on labour market outcomes, including wages, employment, demand for skilled and female workers, wage inequality, and job security. These findings have two important implications: (1) Manufacturing exports might be monopolized by large firms, and (2) promoting exports could improve labour market outcomes, especially for skilled and female workers.
Journal: Applied Economics
Pages: 3965-3975
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1726865
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726865
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Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3965-3975
Template-Type: ReDIF-Article 1.0
Author-Name: Shabbir Ahmad
Author-X-Name-First: Shabbir
Author-X-Name-Last: Ahmad
Title: Estimating input-mix efficiency in a parametric framework: application to state-level agricultural data for the United States
Abstract:
This paper contributes to the productivity literature by demonstrating novel econometric methods to estimate input-mix efficiency (IME) in a parametric framework. Input-mix efficiency is defined as the potential improvement in productivity with change in input mix. Any change in input-mix (e.g., land to labou r ratio) will result in change in productivity. The advantage of this approach is that it does not require data on input prices to estimate the mix efficiency levels. A nonlinear input-aggregator function (e.g., Constant Elasticity of Substitution) is used to derive an expression for input-mix efficiency. Bayesian stochastic frontier is estimated for obtaining mix efficiency using US state-level agricultural data for the period 1960–2004. Significant variation in input-mix efficiency is noted across the states and regions, attributable to diverse topographic and geographic conditions. Furthermore, comparisons of allocative and mix efficiencies provide insightful policy implications. The production incentives such as taxes and subsidies could help farmers in adjusting their input mix in response to changes in input prices, which can affect the US agricultural productivity significantly. The proposed methodology can be extended by i) using flexible functional forms; ii) introducing various time- and region-varying input aggregators; and iii) defining more sophisticated weights for input aggregators.
Journal: Applied Economics
Pages: 3976-3997
Issue: 36
Volume: 52
Year: 2020
Month: 7
X-DOI: 10.1080/00036846.2020.1726866
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1726866
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Handle: RePEc:taf:applec:v:52:y:2020:i:36:p:3976-3997
Template-Type: ReDIF-Article 1.0
Author-Name: Qian Zhang
Author-X-Name-First: Qian
Author-X-Name-Last: Zhang
Author-Name: Shuwen Yang
Author-X-Name-First: Shuwen
Author-X-Name-Last: Yang
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Author-Name: Ting Yu
Author-X-Name-First: Ting
Author-X-Name-Last: Yu
Title: Storage pricing model of container yards under fluctuating demand
Abstract:
This paper discusses three types of relationship modes between a container terminal yard and a remote container yard. Considering the variability of demand, a corresponding storage pricing model based on game theory for inbound containers is developed to describe customer behaviour and pricing strategies of yards. The results of theoretical derivation and numerical study indicate that both sides will profit more in the cooperative mode, and the operational efficiency of terminals will be improved. The revenue-sharing contract designed in this paper leads to supply chain coordination. Perfect win-win coordination can be realized when the contract parameters meet specific conditions.
Journal: Applied Economics
Pages: 4223-4235
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733476
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733476
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Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4223-4235
Template-Type: ReDIF-Article 1.0
Author-Name: Jessica Ying Chan
Author-X-Name-First: Jessica Ying
Author-X-Name-Last: Chan
Author-Name: Jonathan A. Cook
Author-X-Name-First: Jonathan A.
Author-X-Name-Last: Cook
Title: Inferring Zambia’s HIV prevalence from a selected sample
Abstract:
This paper estimates HIV prevalence in Zambia from survey data that are subject to sample selection: some surveyed individuals do not consent to take an HIV test. We introduce semiparametric estimators that incorporate recent developments in machine learning. The semiparametric estimators perform well in Monte Carlo experiments and obtain narrower confidence intervals than a fully parametric estimator when the model is misspecified. Our semiparametric estimates of the HIV rate are roughly equal to the rate in the selected sample. In contrast, recent parametric estimates find a higher rate – implying that some form of sample-selection correction is warranted. Further, parametric estimates find a 14% decline in Zambia’s HIV prevalence from 2007 to 2014, whereas semiparametric estimates find that the HIV rate was relatively stable over this time period.
Journal: Applied Economics
Pages: 4236-4249
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733477
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733477
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Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4236-4249
Template-Type: ReDIF-Article 1.0
Author-Name: Gazi Salah Uddin
Author-X-Name-First: Gazi Salah
Author-X-Name-Last: Uddin
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Anupam Dutta
Author-X-Name-First: Anupam
Author-X-Name-Last: Dutta
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Impact of food price volatility on the US restaurant sector
Abstract:
Although fluctuations in agricultural commodity prices appear to be a source of risk to the US restaurant sector, the effect that volatility of food price has on the performance (returns) of that sector receives little or no attention in the relevant literature. We fill this gap by modelling the price and returns of corn and wheat and the volatilities of the US restaurant equity sector through a GARCH-jump intensity model. We find evidence indicating that the US restaurant sector is sensitive to food volatility shocks. Food price volatility negatively impacts US restaurant sector equity returns, implying that increases in food price volatility undermine restaurant sector performance. Also, food price volatility is observed to influence the restaurant sector symmetrically, indicating that changes in food volatility (increases and decreases) have homogeneous effects on the US restaurant sector performance. Implications of the results are discussed.
Journal: Applied Economics
Pages: 4250-4262
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733478
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733478
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Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4250-4262
Template-Type: ReDIF-Article 1.0
Author-Name: Livio Di Matteo
Author-X-Name-First: Livio
Author-X-Name-Last: Di Matteo
Author-Name: Fraser Summerfield
Author-X-Name-First: Fraser
Author-X-Name-Last: Summerfield
Title: The shifting Scully curve: international evidence from 1871 to 2016
Abstract:
Scully curves estimating growth-maximizing public-sector size are constructed using panel data covering 17 industrialized nations from 1870–2016. Results suggest that government expenditure-to-GDP ratios between 24% and 32% were historically growth maximizing. Instrumental variable estimates support the quadratic Scully curve relationship as causal over this period. We allow for a shifting Scully curve and find that the economic growth-maximizing size changed throughout history, from 11% pre-WWI to 21% post-WWII and 41% following the OPEC crisis. The Scully curve disappears after the mid-1990s suggesting a structural change in the relationship between central government expenditure and economic growth.
Journal: Applied Economics
Pages: 4263-4283
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733479
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733479
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Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4263-4283
Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Marzioni
Author-X-Name-First: Stefano
Author-X-Name-Last: Marzioni
Author-Name: Alessandro Pandimiglio
Author-X-Name-First: Alessandro
Author-X-Name-Last: Pandimiglio
Author-Name: Marco Spallone
Author-X-Name-First: Marco
Author-X-Name-Last: Spallone
Title: Excise gap and price in the Italian cigarette industry
Abstract:
We provide evidence that tax shifts in the Italian cigarette industry are not homogeneous across price categories and are associated with differences in the excise structure. We take the gap between excise on lower and higher price categories as a proxy for unbalanced tax changes and, abstracting from strategic behaviour of manufacturers, we estimate the effect and the significance of a change in the excise gap, as long as in the tax level, on the market average price. We find that unbalanced tax increases are likely to negatively affect the average price towards the low end of the price category. As a result, the potential impact of taxation increase on price is reduced.
Journal: Applied Economics
Pages: 4284-4299
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1733480
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1733480
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Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4284-4299
Template-Type: ReDIF-Article 1.0
Author-Name: Rong Li
Author-X-Name-First: Rong
Author-X-Name-Last: Li
Author-Name: Sufang Li
Author-X-Name-First: Sufang
Author-X-Name-Last: Li
Author-Name: Di Yuan
Author-X-Name-First: Di
Author-X-Name-Last: Yuan
Author-Name: Keming Yu
Author-X-Name-First: Keming
Author-X-Name-Last: Yu
Title: Does economic policy uncertainty in the U.S. influence stock markets in China and India? Time-frequency evidence
Abstract:
This paper uses continuous and discrete wavelet tools to evaluate the dynamic correlation and causality between the U.S. economic policy uncertainty (EPU) and stock markets in China and India from 1997 to 2018. The dynamic correlation in the time-frequency domain is obtained by continuous wavelet coherence, and the causality over time and frequencies is tested by the linear and non-linear Granger causality based on discrete wavelet transform. The results show that the interaction between EPU in the U.S. and stock returns in China and India is weak in the short term but gradually becomes stronger in the long term, especially when significant financial events occur. There is no Granger causality in the short term; however, there is unidirectional or bidirectional causality in the medium and long term. These conclusions may provide useful reference for policymakers and investors in Chinese and Indian stock markets to prevent cross-country risk contagion from the U.S.
Journal: Applied Economics
Pages: 4300-4316
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1734182
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1734182
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Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4300-4316
Template-Type: ReDIF-Article 1.0
Author-Name: Afonso Câmara Leme
Author-X-Name-First: Afonso
Author-X-Name-Last: Câmara Leme
Author-Name: Josep-Oriol Escardíbul
Author-X-Name-First: Josep-Oriol
Author-X-Name-Last: Escardíbul
Author-Name: Luis Catela Nunes
Author-X-Name-First: Luis Catela
Author-X-Name-Last: Nunes
Author-Name: Ana Balcão Reis
Author-X-Name-First: Ana
Author-X-Name-Last: Balcão Reis
Author-Name: Carmo Seabra
Author-X-Name-First: Carmo
Author-X-Name-Last: Seabra
Title: The effect of a specialized versus a general upper-secondary school curriculum on students’ performance and inequality. A difference-in-differences cross-country analysis
Abstract:
Countries differ in their academic upper-secondary school systems whereby some require their students to choose a specialization track from a set of areas – typically natural sciences, economic sciences, or humanities – and follow that specialization for the course of their upper secondary education years whereas, by contrast, others follow a general curriculum in which students are not required to follow a single specialization and thus, may receive a more general education. Because countries follow only one system or the other, a cross-country analysis is required to estimate the possible effects on students’ achievement of these institutional differences. We measure achievement with the scores in reading and mathematics in international assessment programmes. An international difference-in-differences approach is chosen to account for country heterogeneity and unobserved factors influencing student outcomes, by using data from three different large-scale international student assessments. Results suggest that there is a negative effect from specialization tracking and that this may be greater for specific sub-groups of the student population – in particular, for students with a low socioeconomic status.
Journal: Applied Economics
Pages: 4317-4331
Issue: 39
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1734183
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1734183
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Handle: RePEc:taf:applec:v:52:y:2020:i:39:p:4317-4331
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Botta
Author-X-Name-First: Marco
Author-X-Name-Last: Botta
Title: Financial crises, debt overhang, and firm growth in transition economies
Abstract:
We examine the effects of the global financial crisis of 2008 and the European debt crisis of 2011 on the relationship between capital structure, investments, and performance for Eastern European companies. While the existing literature documents how firms’ investments are sensitive to the availability of internal funds and to debt holdings, we further investigate whether this investment sensitivity also translates in different levels of performance, and document that capital structure indeed has both a direct and an indirect effect, mediated by the capital expenditure channel. We show that firms with higher financial flexibility experience higher investments and returns on capital. Over-levered firms instead suffer from a debt overhang condition, forcing them to curb investments, and consequently experiencing lower performance. Overall, we provide evidence on the importance of capital structure and financial flexibility on investments and performance, showing the real consequences of the debt overhang condition on firm value creation. Firms should therefore aim at maintaining adequate financial flexibility in order to be able to pursue future profitable investment opportunities, and avoid the under-investment problem arising from a debt overhang situation.
Journal: Applied Economics
Pages: 4333-4350
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1734184
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1734184
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Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4333-4350
Template-Type: ReDIF-Article 1.0
Author-Name: Zuohui Zuo
Author-X-Name-First: Zuohui
Author-X-Name-Last: Zuo
Author-Name: Yan Zhou
Author-X-Name-First: Yan
Author-X-Name-Last: Zhou
Title: Rotating group representatives and group members’ requests in repeated public goods game
Abstract:
This study investigated the effect of group representatives on contribution behaviour in response to group members’ requests in repeated public goods games. Data came from 135 students in 15 groups enrolled in the experiment, grouped in the following treatments: no group representatives (NR, NRG) and group representatives (R1, R2). We also tested initial requests wherein the group members’ initial requests (i.e. NRG, R2) mediated the positive relationship between individual-level contribution preferences and group contributions. We used a fixed-effects GLS regression and IV regression to analyse the effect of group representatives and group members’ requests. The results indicated the following: (a) rotating group representative/group members’ requests was related to group contributions at the session (within-members) and group (between-group) levels; (b) the reactions to members’ requests positively predicted group contributions; (c) subjects in the no group representatives treatment formed their requests by relying more on previous group contributions than subjects in the group representatives treatment, who relied more on the previous group members’ requests; and (d) the initial requests explained long-term contribution levels, which resulted in variations in group contributions observed between the NRG and R2 treatments. Our findings highlight the role of rotating group representatives in stimulating cooperation among members, while group members’ requests impel individuals to make contribution decisions at the group level.
Journal: Applied Economics
Pages: 4351-4365
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735616
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735616
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Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4351-4365
Template-Type: ReDIF-Article 1.0
Author-Name: Ying Zhang
Author-X-Name-First: Ying
Author-X-Name-Last: Zhang
Author-Name: Dongqi Yao
Author-X-Name-First: Dongqi
Author-X-Name-Last: Yao
Author-Name: Chunguang Zhang
Author-X-Name-First: Chunguang
Author-X-Name-Last: Zhang
Title: Bank loan versus financial lease: how do traditional and innovative approaches within the banking sector influence economic growth? A comparative analysis between the US and China
Abstract:
The argument over the effects of financial structures on economic growth remains unsettled. This study, therefore, compares the dynamic correlation and lead–lag relationship between the different financial approaches within the banking sector (that is, traditional bank loans versus innovative financial leasing) and economic growth. We employ a continuous wavelet analysis using time-series data from 1982–2017 from the US (the world’s largest developed country) and China (the world’s largest developing country). The empirical results show that (1) episodes of significant correlation usually emerge during periods of reform, crisis or policy implementation; and (2) in China, traditional banking promotes economic growth in the long term, while the real economy only imputes the evolution of banks during critical economic reforms in the short term. Meanwhile, financial leasing could only promote the development of the real economy under suitable regulation; and (3) in the US, before the crises, the irrational growth of the real economy could increase bank assets, while during the crises, the traditional banking approach harms economic growth, and after the crises, financial leases play an important role in recovery. Therefore, we suggest that policymakers should establish adequate policies and regulations to solve the situation.
Journal: Applied Economics
Pages: 4366-4383
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735617
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735617
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Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4366-4383
Template-Type: ReDIF-Article 1.0
Author-Name: Ivan Indriawan
Author-X-Name-First: Ivan
Author-X-Name-Last: Indriawan
Author-Name: Donald Lien
Author-X-Name-First: Donald
Author-X-Name-Last: Lien
Author-Name: Tai-Yong Roh
Author-X-Name-First: Tai-Yong
Author-X-Name-Last: Roh
Author-Name: Yahua Xu
Author-X-Name-First: Yahua
Author-X-Name-Last: Xu
Title: Bad volatility is not always bad: evidence from the commodity markets
Abstract:
Using exchange-traded fund (ETF) options data, we examine the predictive power of variance risk premium on returns of four commodities: crude oil, natural gas, gold and silver. We also analyze the predictive power of upside and downside variance risk premiums using a decomposition model conditional on the direction of the underlying market movement. We find that both the undecomposed and decomposed variance risk premiums are able to predict commodity prices. The decomposed variance risk premiums, however, outperform the undecomposed premium. The importance of upside and downside variance risk premiums differs across markets, related to hedging demand. In energy markets, both upside and downside premiums have strong predictive power, while in precious metal markets, only the upside premium is predictive.
Journal: Applied Economics
Pages: 4384-4402
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735619
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735619
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Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4384-4402
Template-Type: ReDIF-Article 1.0
Author-Name: Karl-Friedrich Israel
Author-X-Name-First: Karl-Friedrich
Author-X-Name-Last: Israel
Author-Name: Sophia Latsos
Author-X-Name-First: Sophia
Author-X-Name-Last: Latsos
Title: The impact of (un)conventional expansionary monetary policy on income inequality – lessons from Japan
Abstract:
This paper analyzes the impact of conventional and unconventional monetary policy on income inequality in Japan, using hitherto unexplored data from the Japan Household Panel Survey. Empirical evidence shows that expansionary monetary policy in Japan has contributed to diminishing the gender pay gap through an increase in working time of women relative to men, but also to increasing the education pay gap. These effects may have materialized via the aggregate demand channel and the labour productivity channel. In contrast, expansionary monetary policy has had no significant impact on the development of the age pay gap.
Journal: Applied Economics
Pages: 4403-4420
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735620
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735620
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Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4403-4420
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements
Author-X-Name-First: Kenneth W.
Author-X-Name-Last: Clements
Author-Name: Yihui Lan
Author-X-Name-First: Yihui
Author-X-Name-Last: Lan
Author-Name: Haiyan Liu
Author-X-Name-First: Haiyan
Author-X-Name-Last: Liu
Title: Understanding alcohol consumption across countries
Abstract:
With unpublished data from the International Comparison Program that cover the consumption of three alcoholic beverages in over 150 countries, we analyse drinking patterns around the world with an index-number approach, by estimating a demand system, and by studying the interaction among beverages in generating utility. We consider a separate demand system for each income quartile and find that tastes are not too different across quartiles. Broadly speaking, the results are robust to rolling sub-samples of countries, an alternative demand model and sample selectivity issues. The differences in the cost of alcohol across countries are also investigated, as is its role in affecting the degree of price-sensitivity of consumption.
Journal: Applied Economics
Pages: 4421-4439
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1735621
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735621
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Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4421-4439
Template-Type: ReDIF-Article 1.0
Author-Name: Matthias Firgo
Author-X-Name-First: Matthias
Author-X-Name-Last: Firgo
Author-Name: Klaus Nowotny
Author-X-Name-First: Klaus
Author-X-Name-Last: Nowotny
Author-Name: Alexander Braun
Author-X-Name-First: Alexander
Author-X-Name-Last: Braun
Title: Informal, formal, or both? Assessing the drivers of home care utilization in Austria using a simultaneous decision framework
Abstract:
Understanding the relationship between different modes of home care for the elderly and the determinants of mode choice is fundamental for an efficient care policy in ageing societies. However, empirical research on this issue has revealed that policy conclusions will depend on both national and methodological factors. Using data for Austria from the Survey of Health, Ageing and Retirement in Europe, the purpose of the present paper is twofold: First, at least to our knowledge, it is the first comprehensive assessment of this kind for Austria. Second, it adds to the literature explicitly focusing on the combined use of informal and formal care in addition to the exclusive use of these services based on an econometric framework accounting for the simultaneity and interdependence between these modes. Our results provide strong evidence for a task-specific and complementary relation of formal and informal home care in Austria, with the health status and functional limitations as the main determinants of home care choice.
Journal: Applied Economics
Pages: 4440-4456
Issue: 40
Volume: 52
Year: 2020
Month: 08
X-DOI: 10.1080/00036846.2020.1736500
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1736500
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Handle: RePEc:taf:applec:v:52:y:2020:i:40:p:4440-4456
Template-Type: ReDIF-Article 1.0
Author-Name: Sonia Antil
Author-X-Name-First: Sonia
Author-X-Name-Last: Antil
Author-Name: Mukesh Kumar
Author-X-Name-First: Mukesh
Author-X-Name-Last: Kumar
Author-Name: Niranjan Swain
Author-X-Name-First: Niranjan
Author-X-Name-Last: Swain
Title: Evaluating the efficiency of regional rural banks across the Indian states during different phases of structural development
Abstract:
The study aims to evaluate the efficiency of regional rural banks (RRBs) across 26 major states in India during different phases of structural development (merger & acquisitions) in the post-reform period of last 15 years spanning from 2001 to 2015. The technique of data envelopment analysis (DEA) is used to evaluate the efficiency of RRBs in each state during three sub-periods to observe the effect of mergers. In-depth analysis is conducted to test the robustness of efficiency scores and evaluate the potential improvement of defined inputs and outputs of inefficient states. The finding reveals wide variations in efficiency across the states in each sub-period. On an average, there is a remarkable improvement in technical efficiency (TE) over three sub-periods resulting through the gain in both pure efficiency (PE) as well as scale efficiency (SE) and thus providing evidence of the positive impact of mergers & acquisitions in different phases of structural development.
Journal: Applied Economics
Pages: 4457-4473
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1735622
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735622
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Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4457-4473
Template-Type: ReDIF-Article 1.0
Author-Name: Aoran Wang
Author-X-Name-First: Aoran
Author-X-Name-Last: Wang
Title: Professors on boards and corporate innovation in China
Abstract:
Using a dataset of listed companies in China, this article finds strong evidence suggesting that academic independent directors on boards have statistically significant and economically substantial promotion effects on corporate innovation. On average, professor directors increase invention-type patent applications and grants by 11% and 7%, respectively. We use Heckman two-stage estimation to address selection bias, and we design two quasi-natural experiments taking advantage of China’s regulatory requirement of six-year tenure expiration for all independent directors and exploiting sudden departures of professor directors due to their personal reasons, respectively, to abate endogeneity. Our results endure these econometric treatments and a series of robustness checks. Furthermore, we document evidence that the advice, conduit, and connectivity channels all work in forming the professor director’s promotion effects on corporate innovation. Moreover, we find that other two types of independent directors, politicians and business people, have hardly any effect on the promotion of corporate innovation.
Journal: Applied Economics
Pages: 4474-4498
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1735623
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1735623
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Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4474-4498
Template-Type: ReDIF-Article 1.0
Author-Name: Saleh Mamun
Author-X-Name-First: Saleh
Author-X-Name-Last: Mamun
Author-Name: Xiaoxue Li
Author-X-Name-First: Xiaoxue
Author-X-Name-Last: Li
Author-Name: Brady P. Horn
Author-X-Name-First: Brady P.
Author-X-Name-Last: Horn
Author-Name: Janie M. Chermak
Author-X-Name-First: Janie M.
Author-X-Name-Last: Chermak
Title: Private vs. public prisons? A dynamic analysis of the long-term tradeoffs between cost-efficiency and recidivism in the US prison system
Abstract:
Compared with the rest of the world, the US prison system is characterized by high incarceration rates, high recidivism, and substantial incarceration costs. The US has increasingly turned to private prisons, resulting in a debate concerning the efficacy of these private prisons. While the private system may produce cost savings it may have also have negative consequences including increased recidivism. Although numerous studies have investigated the cost savings associated with private prisons and their effect on recidivism, to our knowledge no work has evaluated the joint impact. In this paper we evaluate these impacts jointly within a dynamic system model, utilizing cost, incarceration and recidivism estimates from the literature. Overall, considering the tradeoff between cost efficiency and recidivism rates, we find that public prisons are less costly in the long term than private prisons. Considering a 25-year time horizon, we find that total inflation-adjusted costs are approximately 1.5% higher for private prisons than public prisons. Considering a 40-year time horizon, we find that private prisons are 3% more costly than public prisons. Thus, results suggest that estimated short-term cost efficiency provided by private prisons may not be worth the long-term consequences of potential increases in recidivism.
Journal: Applied Economics
Pages: 4499-4511
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1736501
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1736501
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Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4499-4511
Template-Type: ReDIF-Article 1.0
Author-Name: Steffen Q. Mueller
Author-X-Name-First: Steffen Q.
Author-X-Name-Last: Mueller
Title: Pre- and within-season attendance forecasting in Major League Baseball: a random forest approach
Abstract:
This study explores the forecasting of Major League Baseball game ticket sales and identifies important attendance predictors by means of random forests that are grown from classification and regression trees (CART) and conditional inference trees. Unlike previous studies that predict sports demand, I consider different forecasting horizons and only use information that is publicly accessible in advance of a game or season. The models are trained using data from 2013 to 2014 to make predictions for the 2015 regular season. The static within-season approach is complemented by a dynamic month-ahead forecasting strategy. Out-of-sample performance is evaluated for individual teams and tested against different least-squares dummy variable regression models and a naïve lagged attendance forecast. My empirical results show high variation in team-specific prediction accuracy with respect to both models and forecasting horizons. Linear and tree-ensemble models, on average, do not vary substantially in predictive accuracy; however, least-squares regression fails to account for various team-specific peculiarities, despite accounting for team fixed effects and censoring attendance predictions to fit to stadium capacities.
Journal: Applied Economics
Pages: 4512-4528
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1736502
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1736502
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Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4512-4528
Template-Type: ReDIF-Article 1.0
Author-Name: Konstantinos Mamais
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Mamais
Author-Name: Kleanthis Karvelas
Author-X-Name-First: Kleanthis
Author-X-Name-Last: Karvelas
Title: Feeling good, as a guide to performance: the impact of economic sentiment in financial market performance for Germany
Abstract:
During the financial crisis of 2007, the Economic Sentiment Indicator for Germany had already started the deepest drop in its history, reaching a new historical low in the second quarter of 2009. The drop was only temporary, as Germany became the de facto ‘safe heaven’ country and thus within 2 years the low became a sharp increase reaching a historical all-time high. The effect of ‘safe heaven’ country that Germany exhibited during the crisis and the resulting numbers for economic sentiment pose the question as to whether economic sentiment can be used to improve the positioning on the German financial market. We examine the link between sentiment and the performance of the German market, and how investors’ herd behaviour should have used such a sentiment signal to take advantage of, during the depression and beyond. We perform a careful sample-split analysis of both the characteristics of sentiment and financial market performance in various sub-periods from the 1990s until today and also use economic sentiment as a guide for timing the German stock market. In our analysis, economic sentiment acquires a leading guide role for investors in the German market.
Journal: Applied Economics
Pages: 4529-4541
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1736503
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1736503
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Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4529-4541
Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Malissa L. Davis
Author-X-Name-First: Malissa L.
Author-X-Name-Last: Davis
Author-Name: James V. Koch
Author-X-Name-First: James V.
Author-X-Name-Last: Koch
Author-Name: James William Saunoris
Author-X-Name-First: James William
Author-X-Name-Last: Saunoris
Title: The relationship between entrepreneurial activity and domestic gross state in-migration patterns in the U.S
Abstract:
Using the Kauffman indices of entrepreneurial activity, which effectively have been entirely overlooked in the domestic migration literature to date, this study seeks to investigate the relationship between entrepreneurial activity and domestic gross in-migration in the U.S. and whether that relationship is bi-directional. The two-part hypothesis being investigated here is that: (a) greater entrepreneurial activity in a state leads to a greater domestic gross in-migration rate, ceteris paribus, and (b) a greater domestic gross in-migration rate induces an increase in entrepreneurial activity, ceteris paribus. After including a number of control variables, luding geographic cost-of-living differentials and an index of aggregate labour market freedom, the most germane of the empirical findings obtained here, based on panel VAR estimation and Granger causality tests, is that the gross state-level in-migration rate in the U.S. has positively impacted the level of entrepreneurial activity. However, there is no compelling evidence that entrepreneurial activity influenced state-level gross in-migration. These results for domestic migration appear to be compatible with previous studies of international immigration to the U.S. and entrepreneurship.
Journal: Applied Economics
Pages: 4542-4556
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1737314
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1737314
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Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4542-4556
Template-Type: ReDIF-Article 1.0
Author-Name: Genyuan Zhong
Author-X-Name-First: Genyuan
Author-X-Name-Last: Zhong
Author-Name: Changling Zhou
Author-X-Name-First: Changling
Author-X-Name-Last: Zhou
Title: Product and process innovation: the implication of making comparisons between uniform pricing monopolist and second-degree price discriminating monopolist
Abstract:
The question of simultaneous product and process innovation, price discrimination is crucial for technologically-evolving industries. In this paper, we assume that there are two different kinds of consumers, and each consumer has his own demand function. We find that both process innovation and product innovation impact the pricing policy. Depending on the number of consumers, there may exist substitutability between process innovation and product innovation. Moving from single-price regime to second-degree price discrimination, we show that allowing price discrimination will increase investment levels in product and process innovation.
Journal: Applied Economics
Pages: 4557-4572
Issue: 41
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1737642
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1737642
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Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4557-4572
Template-Type: ReDIF-Article 1.0
Author-Name: M. Kathleen Thomas
Author-X-Name-First: M. Kathleen
Author-X-Name-Last: Thomas
Author-Name: Kristin Klopfenstein
Author-X-Name-First: Kristin
Author-X-Name-Last: Klopfenstein
Title: Practice what you preach and be a control freak
Abstract:
Social science researchers focus on treatment conditions and participant behaviour when designing causal impact studies and ignore in-depth examination of control conditions, assuming dichotomy even when interventions and their comparisons are better conceived as latent variables distributed along a range of program elements. When there is overlap in the distributions of treatment and control program elements, a weak treatment-control contrast can arise even when participant behaviour is ideal and researchers understand treatment conditions. Failure to recognize and describe potential overlap between program elements in treatment and control conditions increases the probability of a null finding and thwarts research consumers attempting to make evidence-based policy decisions. Treatment differentiation requires a strong understanding of the control experience along the same dimensions used to establish treatment fidelity.
Journal: Applied Economics
Pages: 4573-4576
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1738325
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1738325
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Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4573-4576
Template-Type: ReDIF-Article 1.0
Author-Name: Jungtaek Lee
Author-X-Name-First: Jungtaek
Author-X-Name-Last: Lee
Author-Name: Juyeon Kim
Author-X-Name-First: Juyeon
Author-X-Name-Last: Kim
Title: The role of health insurance in mental health care for young adults
Abstract:
This study investigates the effect of health insurance on young adults’ utilization of mental health care, by exploiting the dependent coverage expansion that was an early provision of the Affordable Care Act. Using the National Health Interview Survey (NHIS) from 2011 to 2013, we utilize the regression discontinuity design to overcome the problem of endogeneity. There are two key findings. First, health insurance has increased young adults’ mental health care. Second, young adults’ physical health care has not been affected by health insurance. The results suggest that the use of mental health care might be more responsive to changes in health insurance coverage than the use of physical health care is. Furthermore, the effect of health insurance on mental health care utilization is heterogeneous across metal health statuses.
Journal: Applied Economics
Pages: 4577-4593
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1738326
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1738326
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Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4577-4593
Template-Type: ReDIF-Article 1.0
Author-Name: Ioannis Skevas
Author-X-Name-First: Ioannis
Author-X-Name-Last: Skevas
Title: Measurement of production inefficiency in a technology and inefficiency heterogeneity setting
Abstract:
This study shows how the estimates of production inefficiency and of the marginal effects of its determinants can be distorted if not accounting for technology and inefficiency heterogeneity. This is achieved by employing a hierarchical stochastic frontier model with random parameters both in the production frontier and in the inefficiency distribution and comparing its results with a conventional frontier model. German dairy farming is used as a case study and estimation is performed in a Bayesian framework. The results reveal significant differences in the inefficiencies and the calculated marginal effects of its determinants across the two models. Specifically, it is shown that inefficiency is overestimated when heterogeneity is not accounted for. An inflation of the means and the variances of the marginal effects is also observed, with the latter result suggesting that technology heterogeneity dominates inefficiency heterogeneity. According to Bayes factors, the employed hierarchical frontier model is favoured by the data when compared to the conventional frontier model.
Journal: Applied Economics
Pages: 4594-4604
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1738327
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1738327
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Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4594-4604
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Author-Name: Joanna Maria Stawska
Author-X-Name-First: Joanna Maria
Author-X-Name-Last: Stawska
Title: Governments as bankers - how European bonds have substituted bank deposits
Abstract:
The purpose of this article is to empirically analyse the relationship between marketable securities (government bonds and treasury bills) and bank deposits in European markets. Using a proper database and proper methodological framework, we will analyse this relationship for the last two decades observed in 32 European countries between 1990Q1 and 2018Q2. We specifically focus on the levels of issued treasury bills and government bonds, as well as on their shares in each country’s GDP. Our empirical results suggest the validation of the substitution hypothesis between bank deposits and marketable securities. This means that deposit holders tend to issue bills when they do not find the investment options from banks’ solutions or from bonds’ yields interesting.
Journal: Applied Economics
Pages: 4605-4620
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1738328
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1738328
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Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4605-4620
Template-Type: ReDIF-Article 1.0
Author-Name: María Torrado
Author-X-Name-First: María
Author-X-Name-Last: Torrado
Author-Name: Álvaro Escribano
Author-X-Name-First: Álvaro
Author-X-Name-Last: Escribano
Title: European gasoline markets: price transmission asymmetries in mean and variance
Abstract:
The main objective of this article is to analyse the different sources of asymmetric price transmissions in the fuel market for France, Germany and Spain. During the last decades, the EU has carried out several common energy policies to achieve more efficient and competitive markets. However, given the specific characteristics of each country, the question we want to address is if fuel prices across EU members behave differently in response to different market structures. Oil operators have been targeted by competition authorities for conducting non-competitive practices. To figure out whether the common complaint that gasoline prices adjust differently to positive or negative input price changes, dynamic asymmetric models for the mean and variance are developed for each country. Several asymmetric specifications for the mean and variance are considered. The best specification combines double threshold error correction models (DT-ECM) for the mean with asymmetric EGARCH plus an asymmetric dummy variable for the conditional variance. We show that French gasoline prices behave more competitively, adjusting quicker to the long-run equilibrium and with more price volatility. This outcome is consistent with the strong presence of hypermarkets following low-cost pricing strategies in France.
Journal: Applied Economics
Pages: 4621-4638
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1739224
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1739224
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Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4621-4638
Template-Type: ReDIF-Article 1.0
Author-Name: Simone Angioloni
Author-X-Name-First: Simone
Author-X-Name-Last: Angioloni
Author-Name: Ziping Wu
Author-X-Name-First: Ziping
Author-X-Name-Last: Wu
Title: Native-migrant labour substitution by industry and wage effects: evidence from the UK
Abstract:
Unlike previous studies, we estimate the native-migrant substitution elasticity (NME) differentiated by sector. To do so, we employ a straightforward estimation strategy that consists of adding slope-shifters to the reduced form of the labour demand equation to allow for sectoral differentiation and adjusting the restrictions on the efficiency parameters consequently. Our study contributes to the literature in three ways. First, this is the first example that estimates NME differentiated by industry. Second, previous studies assessed the effect of the past migration on wages. In contrast, we assess the impact of potential restrictions to unskilled EU labour in the UK and this can useful to design future immigration policies in the country. Third, our results contribute to understand the dynamics between migration and the domestic labour market in the UK and provide a lesson for other developed economies.
Journal: Applied Economics
Pages: 4639-4658
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1739613
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1739613
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Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4639-4658
Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Author-Name: A. Doruk Gunaydin
Author-X-Name-First: A. Doruk
Author-X-Name-Last: Gunaydin
Author-Name: Imra Kirli
Author-X-Name-First: Imra
Author-X-Name-Last: Kirli
Title: Decomposing value globally
Abstract:
This paper utilizes an international context and revisits the findings which argue that the positive relation between book-to-market ratio and future equity returns is driven by historical changes in firm size in the US. After confirming these results in the US setting both in the original and a more recent sample period, we find that they do not hold in regions outside the US. In the international sample, book-to-market ratio has a significantly positive relation with future equity returns even after changes in firm size are controlled for in regression analyses. This positive relation is again visible when the orthogonal component of book-to-market ratio (which is independent of changes in firm size) is used as a sorting variable in portfolio analyses. Country-level analyses confirm the findings from regional analyses.
Journal: Applied Economics
Pages: 4659-4676
Issue: 42
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1739614
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1739614
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Handle: RePEc:taf:applec:v:52:y:2020:i:42:p:4659-4676
Template-Type: ReDIF-Article 1.0
Author-Name: Jingbo Luo
Author-X-Name-First: Jingbo
Author-X-Name-Last: Luo
Author-Name: Xiaorong Li
Author-X-Name-First: Xiaorong
Author-X-Name-Last: Li
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: Political uncertainty and labour investment efficiency
Abstract:
We examine the impact of political uncertainty on the labour investment efficiency (LIE) of a firm. Using a sample of Chinese firms, we test the market discipline and managerial entrenchment hypotheses. Our findings suggest that political uncertainty adversely affects LIE. The results are consistent with the managerial entrenchment hypothesis. That is, firms hire more labour in a period of increased information asymmetry due to the political uncertainty, which deteriorates LIE. Our findings are robust to a battery of alternative measures of LIE and estimation methods. We conduct several additional analyses and document that the adverse impact of political uncertainty is stronger when the newly appointed government official is older, the firm is state-owned, the firm belongs to a politically sensitive industry or the firm operates in locations with stringent labour protection. By contrast, when the firm locates in a region with weak Chinese government intervention or after President Xi Jinping’s anti-corruption campaign, the adverse impact of political uncertainty on LIE is less pronounced. Last, we document that after hiring more labour, firms receive tangible and intangible benefits in terms of receiving more loans, collect more government subsidies, and able to re-establish some political connection but at the cost of lower performance.
Journal: Applied Economics
Pages: 4677-4697
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1739615
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1739615
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Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4677-4697
Template-Type: ReDIF-Article 1.0
Author-Name: Phuong Thanh Le
Author-X-Name-First: Phuong Thanh
Author-X-Name-Last: Le
Author-Name: Hong-Oanh Nguyen
Author-X-Name-First: Hong-Oanh
Author-X-Name-Last: Nguyen
Title: Influence of policy, operational and market conditions on seaport efficiency in newly emerging economies: the case of Vietnam
Abstract:
Located in Southeast Asia as one of the most dynamic economic regions in the world and close to north-south shipping routes, Vietnam’s seaports play a vital role in promoting its international trade and economic growth. And yet, most ports are small and owned by the public sector. Their performance is subject to various factors relating to government policy, operational and market conditions. Although the Government has been trying to improve the sector’s performance through corporatization, its corporatization model is unique in many ways compared with reform models in other countries. This study seeks to analyse the effects of government policy, operational and market conditions among other factors, on Vietnamese seaports’ efficiency. Double-bootstrap data envelopment analysis (DEA) and univariate and multivariate analyses were conducted using the data sample of 41 ports for years 2015 and 2016. The analysis results show that the factors of production, regional location and reform policy had a significant impact on port performance.
Journal: Applied Economics
Pages: 4698-4710
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1740159
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1740159
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Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4698-4710
Template-Type: ReDIF-Article 1.0
Author-Name: Yafeng Qin
Author-X-Name-First: Yafeng
Author-X-Name-Last: Qin
Author-Name: Guoyao Pan
Author-X-Name-First: Guoyao
Author-X-Name-Last: Pan
Author-Name: Min Bai
Author-X-Name-First: Min
Author-X-Name-Last: Bai
Title: Improving market timing of time series momentum in the Chinese stock market
Abstract:
This paper is the first study to present firm-level evidence that the time-series momentum (TSMOM) strategies with look-back-period k of 10 to 200 days outperform the buy-and-hold strategy (BH) on individual stocks in the Chinese stock market. We document that the optimal k* generating the best performance is different across assets and varies over time. We hence propose a model to predict the asset-specific and time-dependent k*, and examine the performance of the TSMOM strategies with the predicted k*. Our analysis shows that using the time-varying predicted k* substantially improves the predictability of the TSMOM strategies. Our new model and findings shed the light on trading strategy for both academia and applied investment practitioners.
Journal: Applied Economics
Pages: 4711-4725
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1740160
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1740160
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Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4711-4725
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Becchetti
Author-X-Name-First: Leonardo
Author-X-Name-Last: Becchetti
Author-Name: Maria Jua Bachelet
Author-X-Name-First: Maria Jua
Author-X-Name-Last: Bachelet
Author-Name: Fabio Pisani
Author-X-Name-First: Fabio
Author-X-Name-Last: Pisani
Title: Eudaimonic happiness as a leading health indicator: cross-country European evidence
Abstract:
Eudaimonic happiness (measured in terms of sense of life) is a relatively unexplored subjective wellbeing indicator. The empirical findings presented in this paper show that it has a significant and quantitatively remarkable correlation with the future insurgence of some chronic diseases and the reduction of most functionalities in the ageing population. These results document that eudaimonic happiness is a relevant leading indicator of future health outcomes and expenditure and that its correlation is independent from that of the traditional life satisfaction measure.
Journal: Applied Economics
Pages: 4726-4744
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1740161
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1740161
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Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4726-4744
Template-Type: ReDIF-Article 1.0
Author-Name: Xiyong Dong
Author-X-Name-First: Xiyong
Author-X-Name-Last: Dong
Author-Name: Changhong Li
Author-X-Name-First: Changhong
Author-X-Name-Last: Li
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Exogenous shocks, dynamic correlations, and portfolio risk management for the Asian emerging and other global developed and emerging stock markets
Abstract:
This study examines the potential influence of exogenous shocks on time-varying correlations and portfolio strategies between the Asian emerging and other global stock markets including developed and other emerging markets. Using the ARMA-cDCC-FIEGARCH model with and without exogenous shocks, our results highlight the usefulness of including other global stock assets in the traditional portfolio for Asian emerging market investors. However, investors have limited opportunities to diversify their assets during the global financial crisis. Moreover, the shocks from the U.S. stock market have a greater influence on global stock markets compared to that from U.S. economic policy. Fortunately, the model with exogenous shocks improves its accuracy, which plays the same role of controlling structural breaks in the model. More importantly, incorporating exogenous shocks in our model also provides better value-at-risk performance results and hedging effectiveness. These results have several important implications for investors, researchers, and policymakers.
Journal: Applied Economics
Pages: 4745-4764
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1743814
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1743814
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Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4745-4764
Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Schroeder
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Schroeder
Title: The impact of microcredit borrowing on household consumption in Bangladesh
Abstract:
The rapid expansion of microcredit in recent years renders knowledge of its impact on poverty critical. Unfortunately, empirical investigations have been limited by endogeneity issues, and randomized controlled trials suffer from a lack of power. This article suggests a strategy for handling the endogeneity of microcredit borrowing without specifying instrumental variables, allowing for estimation using observational data. The model is identified by an assumption on the conditional second moments of the errors and estimated semiparametrically. I find that an increase in the amount borrowed from the Grameen Bank and similar institutions in Bangladesh has a positive and significant effect on per-capita household consumption. The estimated elasticity is in the range of 0.18 to 0.21. These estimates indicate that microcredit may be more effective than previously thought.
Journal: Applied Economics
Pages: 4765-4779
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1743815
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1743815
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Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4765-4779
Template-Type: ReDIF-Article 1.0
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: Biliang Luo
Author-X-Name-First: Biliang
Author-X-Name-Last: Luo
Author-Name: S. T. Boris Choy
Author-X-Name-First: S. T. Boris
Author-X-Name-Last: Choy
Author-Name: Xianlei Ma
Author-X-Name-First: Xianlei
Author-X-Name-Last: Ma
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Title: The demonstration effect of transactions between strangers on those between acquaintances: evidence from land rentals in rural China
Abstract:
Over the last decade, introducing outer village lessees has been an important approach to increasing the marketization of land rentals in rural China. However, with large numbers of informal features among acquaintances, the effect of introducing outer village lessees is ambiguous. In this paper, data from the 2015 China Household Finance Survey are used to analyse the demonstration effect of land rentals between strangers on those between acquaintances, and land rent is used to represent the marketization of land rentals. The estimated results indicate that with the emergence of outer village lessees, lessors transacting with acquaintances are more likely to obtain high land rents and to rent out farmland for profit. Evidence shows that profit motives are the key pathway by which the presence of outer village lessees affects land rents. The analysis using the sample of lessees supports our findings. Our analysis implies that the demonstration effect exists in land rental markets, and also provides a feasible instrument for promoting market-oriented land rentals between acquaintances.
Journal: Applied Economics
Pages: 4780-4793
Issue: 43
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751051
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751051
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Handle: RePEc:taf:applec:v:52:y:2020:i:43:p:4780-4793
Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Michael Grimm
Author-X-Name-First: Michael
Author-X-Name-Last: Grimm
Title: Does foreign aid increase private investment? Evidence from panel cointegration
Abstract:
This article uses panel cointegration and causality techniques to examine the long run relationship between foreign aid and private investment. Our main result is that aid has a statistically significant negative effect on private investment. This result is robust to outliers, different measures and forms of aid, sample selection and the sample period. In addition, we find that long run causality runs in both directions, suggesting that an increase in aid reduces private investment and that, in turn, higher private investment leads to lower aid inflows.
Journal: Applied Economics
Pages: 2537-2550
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566183
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566183
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2537-2550
Template-Type: ReDIF-Article 1.0
Author-Name: Aekapol Chongvilaivan
Author-X-Name-First: Aekapol
Author-X-Name-Last: Chongvilaivan
Title: Learning by exporting and high-tech capital deepening in Singapore manufacturing industries, 1974–2006
Abstract:
A number of fundamental factors enhance the growth of industries’ productivity. Among others, the export-led and high-tech capital deepening strategies are widely adopted by developing economies. This article attempts to empirically investigate the extent to which both industrial development policies affect the Total Factor Productivity Growth (TFPG) in Singapore manufacturing industries during the period from 1974 to 2006. Using the panel data estimations, I find that both development strategies bring about TFPG via nonneutral technological growth, and the former more largely explains TFPG than does the latter. This study captures the measure of learning by exporting by the lagged export intensity and therefore contributes to the literature, in which only the case of whether or not firms are active in export markets is conventionally employed. Methodologically, my main contributions are a more detailed treatment of (nonneutral) technological changes, and an alternative measure of export intensity.
Journal: Applied Economics
Pages: 2551-2568
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566184
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566184
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2551-2568
Template-Type: ReDIF-Article 1.0
Author-Name: Yui Suzuki
Author-X-Name-First: Yui
Author-X-Name-Last: Suzuki
Title: Binding constraint on economic growth under export-oriented industrialization and globalization
Abstract:
The two-gap model of economic growth implies that different constraints on economic growth, namely the savings and the foreign exchange availability, are binding at different times. This article estimates these varying binding constraints in 16 countries in East and Southeast Asia and Latin America, and explores their differences across countries, regions and periods. I show that the East and Southeast Asian countries, which are recognized to be successful in export-oriented industrialization, are less constrained by the foreign exchange availability with reinforced export capacity than the Latin American countries, which had carried some inertia of import substituting industrialization policy until the 1980s. In addition, the economic growth turns out to be more constrained by the domestic savings in recent years, which can be a reflection of capital account liberalization policies typically implemented in the late 1980s and 1990s, and/or a diminishing return to export-led growth. In either case, this might be a factor underlining the recent reconsideration of export-oriented development strategy to balance past excessive dependence on the external demand in several countries in East and Southeast Asia.
Journal: Applied Economics
Pages: 2569-2576
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566185
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566185
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2569-2576
Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Tregenna
Author-X-Name-First: Fiona
Author-X-Name-Last: Tregenna
Title: What are the distributional implications of halving poverty in South Africa when growth alone is not enough?
Abstract:
The United Nations Millennium Declaration commits to halving extreme poverty between 2000 and 2015. The South African government has set a goal of halving poverty by 2014, although the meaning of this goal has not yet been defined. This article frames government's stated target of halving poverty by 2014 in terms of specific measures of the poverty gap and poverty headcount ratio, using income and expenditure survey microdata. With the poverty line as defined here, approximately half the South African population falls below the poverty line. Despite this, the aggregate poverty gap is surprisingly small at about 3% of gross domestic product. Projections of poverty in 2014 under various growth scenarios indicate that growth alone will be insufficient to halve poverty by then, and that any worsening of distribution will put the target of halving poverty by 2014 far beyond reach. However, projections of the effects of a range of growth and distributional scenarios on poverty, using a new method for simulating pro-poor distributional change, indicate that halving poverty appears feasible with moderate growth rates and fairly mild pro-poor distributional change. The results are indicative as to the scale of distributional changes necessary to halve poverty under various growth scenarios.
Journal: Applied Economics
Pages: 2577-2596
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566186
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566186
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2577-2596
Template-Type: ReDIF-Article 1.0
Author-Name: Myeong Hwan Kim
Author-X-Name-First: Myeong Hwan
Author-X-Name-Last: Kim
Author-Name: Nodir Adilov
Author-X-Name-First: Nodir
Author-X-Name-Last: Adilov
Title: The lesser of two evils: an empirical investigation of foreign direct investment-pollution tradeoff
Abstract:
This article investigates the relationship between Foreign Direct Investment (FDI) and pollution measured by carbon dioxide (CO2) emissions. The results suggest that while lax environmental regulations might attract FDI, the foreign companies utilize less polluting technology as compared to local firms in low-income countries. Thus, FDI does not necessarily increase pollution levels in the host countries. The findings, therefore, simultaneously support the pollution haven and the pollution halo hypotheses.
Journal: Applied Economics
Pages: 2597-2606
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566187
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566187
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2597-2606
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge E. Araña
Author-X-Name-First: Jorge E.
Author-X-Name-Last: Araña
Author-Name: Carmelo J. León
Author-X-Name-First: Carmelo J.
Author-X-Name-Last: León
Title: Scale-perception bias in the valuation of environmental risks
Abstract:
The valuation of environmental risks is commonly approached with the utilization of stated preference methods such as contingent valuation. In these methods, money is utilized as the scale that reflects the individual's underlying utility function. However, this scale can vary across individuals due to different perceptions on what are the right or appropriate bounds for Willingness To Pay (WTP). In this article, we test for scale-perception bias and propose a correction method based on the utilization of anchoring vignettes that define different degrees of preference for the nonmarket good. The proposed method is applied to study the commonly found anomaly ‘probability neglect’, which is defined by the insensitivity to the probability levels in the valuation of environmental risks. The results show that probability neglect disappears when WTP responses are corrected for self-perception bias through the utilization of the anchoring vignettes approach.
Journal: Applied Economics
Pages: 2607-2617
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566188
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566188
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2607-2617
Template-Type: ReDIF-Article 1.0
Author-Name: Yeşim Kuştepeli
Author-X-Name-First: Yeşim
Author-X-Name-Last: Kuştepeli
Author-Name: Yaprak Gülcan
Author-X-Name-First: Yaprak
Author-X-Name-Last: Gülcan
Author-Name: Sedef Akgüngör
Author-X-Name-First: Sedef
Author-X-Name-Last: Akgüngör
Title: Transportation infrastructure investment, growth and international trade in Turkey
Abstract:
Investment in transportation infrastructure facilitate the movement of the goods; leading to higher standards of living for the people of the whole globe. Although infrastructure is indispensable to achieve the main development targets in developing countries, such as urbanization, industrialization and sustainable economic development (Kim, 2006), the relationship between infrastructure expenditures, economic growth and international trade is inconclusive. The aim of this study is to investigate the effect of investment on highway infrastructure on international trade and economic growth in Turkey for the period of 1970 to 2005. The empirical results from causality and cointegration analysis suggest only a very weak short run effect of share of exports in Gross National Product (GNP) on highway transportation expenditures but no long run relationships between highway infrastructure expenditures, economic growth and international trade in Turkey.
Journal: Applied Economics
Pages: 2619-2629
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566189
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566189
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2619-2629
Template-Type: ReDIF-Article 1.0
Author-Name: M. Ali Choudhary
Author-X-Name-First: M. Ali
Author-X-Name-Last: Choudhary
Author-Name: Adnan Haider
Author-X-Name-First: Adnan
Author-X-Name-Last: Haider
Title: Neural network models for inflation forecasting: an appraisal
Abstract:
We assess the power of diverse Artificial Neural-Network (ANN) models as forecasting tools for monthly inflation rates for 28 Organization for Economic Co-operation and Development (OECD) countries. In the context of short out-of-sample forecasting horizon we find that, on average, the ANN models were a superior predictor for inflation for 45% while the Autoregressive model of order one (AR1) model performed better for 23% of the countries. Furthermore, we develop arithmetic combinations of several ANN models and find that these may also serve as credible tools for forecasting inflation.
Journal: Applied Economics
Pages: 2631-2635
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566190
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566190
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2631-2635
Template-Type: ReDIF-Article 1.0
Author-Name: Jürgen Antony
Author-X-Name-First: Jürgen
Author-X-Name-Last: Antony
Author-Name: Thomas Grebel
Author-X-Name-First: Thomas
Author-X-Name-Last: Grebel
Title: Technology flows between sectors and their impact on large-scale firms
Abstract:
In this article we highlight the importance of technology flows between sectors and their impact on the labour productivity of large-scale corporations. Based on theoretical considerations, we explore technological spillovers between the sectors of an economy. Large-scale corporations usually focus on certain sectors but make use of a wide range of technological knowledge from other sectors. Thereby, technological knowledge built up in sectors by continuous R&D activities does not spill over without bounds but is directed by firms’ absorptive capacities. We use firms’ patent portfolio to empirically calculate the sector affiliation and therewith the firms’ absorptive capacities in order to estimate the impact of technology diffusion on labour productivity. Fortune 500 firms serve as data base.
Journal: Applied Economics
Pages: 2637-2651
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566191
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566191
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2637-2651
Template-Type: ReDIF-Article 1.0
Author-Name: Nick Drydakis
Author-X-Name-First: Nick
Author-X-Name-Last: Drydakis
Title: Sexual orientation and labour relations: new evidence from Athens, Greece
Abstract:
We use data from the 2008–2009 Athens Area Study (AAS) to provide the first evidence on the relationship between men's sexual orientation and wages in the Greek capital, Athens. Gay and bisexual men are found to receive significantly lower monthly wages than heterosexual male workers after accounting for demographic and occupational characteristics. The estimations reveal that educated gay and bisexual workers face lower wage differentials than less-educated gay and bisexual workers, which is consistent with the statistical theory of discrimination. However, wage gaps are significant at all educational attainment levels, suggesting that these workers face strong prejudices in the Athenian labour market. The same pattern holds also across all occupations and sectors. Furthermore, to better understand the determinants of the wage gaps, we compare gay/bisexual men with both married and unmarried heterosexual men. By making these comparisons, we are able to disentangle the penalty associated with being unmarried from other human-capital explanations for the wage gap.
Journal: Applied Economics
Pages: 2653-2665
Issue: 20
Volume: 44
Year: 2012
Month: 07
X-DOI: 10.1080/00036846.2011.566194
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566194
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Handle: RePEc:taf:applec:v:44:y:2012:i:20:p:2653-2665
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Hashemi Joo
Author-X-Name-First: Mohammad
Author-X-Name-Last: Hashemi Joo
Author-Name: Yuka Nishikawa
Author-X-Name-First: Yuka
Author-X-Name-Last: Nishikawa
Author-Name: Krishnan Dandapani
Author-X-Name-First: Krishnan
Author-X-Name-Last: Dandapani
Title: Announcement effects in the cryptocurrency market
Abstract:
Cryptocurrencies have gained popularity as new economic investment assets globally in recent years. This study examines market reactions to major news events associated with cryptocurrencies. Abnormal returns as well as cumulative abnormal returns (CARs) around major news announcements, both positive and negative, are investigated for three primary cryptocurrencies: Bitcoin, Ethereum, and Ripple. High abnormal returns are observed on the event day (Day 0), and CARs typically diverge during event windows of (−3, 6) and (0, 6), indicating that the information is not fully reflected in prices immediately after the news events. The CARs that linger for six days after an event suggest that the information flow in the cryptocurrency market is visibly slow. The magnitudes of CARs are larger for negative events than for positive events, implying that the market reaction to negative events is stronger than to positive announcements. The findings of this study may have crucial implications for investors, arbitragers and practitioners as we document evidence of potential trading opportunities for investors who initiate a trading position even after announcements.
Journal: Applied Economics
Pages: 4794-4808
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1745747
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745747
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Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4794-4808
Template-Type: ReDIF-Article 1.0
Author-Name: Ayako Saiki
Author-X-Name-First: Ayako
Author-X-Name-Last: Saiki
Author-Name: Jon Frost
Author-X-Name-First: Jon
Author-X-Name-Last: Frost
Title: Unconventional monetary policy and inequality: is Japan unique?
Abstract:
Unconventional monetary policy (UMP) influences inequality through two channels that work in opposite directions – a labour market channel (more employment, higher wages) and a financial market channel (higher asset prices). In an earlier paper, covering UMP through 2014, we found that UMP in Japan had contributed to greater income inequality through its effects on asset prices. With a longer time period, a richer dataset including labour market data, and a structural vector autoregression (SVAR) we confirm that these results continue to hold, and investigate why UMP’s impact on inequality in Japan differs from some other countries. We argue that Japanese structural issues may mute the labour market channel, especially: (i) labour market rigidity; and (ii) the large share of the population that is older than 65 years old or retired. The older cohort’s capital gains and dividends are re-saved in other financial assets, instead of being consumed or used for starting businesses. At the same time, wages have not increased despite the severe labour shortage, due to the frictions in Japan’s labour market. We conclude that these factors may make the inequality created by UMP in Japan unique by international comparison.
Journal: Applied Economics
Pages: 4809-4821
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1745748
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745748
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Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4809-4821
Template-Type: ReDIF-Article 1.0
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Title: Market competition and corporate performance: empirical evidence from China listed banks with financial monopoly aspect
Abstract:
Theorists and policy experts generally believe that the higher degrees of financial monopoly and lower degrees of market competition can result in the higher performance level of companies especially in an imperfect competitive market. The banking industry is an excellent field for which to test market monopoly power and performance. In this study, we analysed data from up to 16 selected listed commercial banks in China from 2006 to 2015. The study utilized the improved Lerner index to elucidate their degree of monopoly power, respectively. Alongside this analysis, a balanced panel data model was utilized to calculate a least squares estimation, maximum likelihood estimation and generalized moment estimation processes. The results show that the state-owned commercial banks in China have poor competitiveness due to the limitations of their system of operation and the limitations in the banks’ ability to make decisions, as they are highly influenced by state macro-policies. Actually, China’s distorted financial monopoly has resulted in the poor performance of banks in the long-term, and indirectly resulted in the waste of national resources and limitation of financial policies. The relationship between the choice of operational model and the performance of listed commercial banks is mainly dictated by their natural monopoly position although such degree will deeply distort by unreasonable financial policy.
Journal: Applied Economics
Pages: 4822-4833
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1745749
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745749
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Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4822-4833
Template-Type: ReDIF-Article 1.0
Author-Name: Nasri Harb
Author-X-Name-First: Nasri
Author-X-Name-Last: Harb
Author-Name: Tony Rouhana
Author-X-Name-First: Tony
Author-X-Name-Last: Rouhana
Title: Earnings and gender wage gap in Lebanon: the role of the human and social capital
Abstract:
This paper investigates the earning function and the gender wage gap in Lebanon using human and social capital covariates. The study uses a randomly collected sample from the Lebanese working population in the greater Beirut area applying the counterfactual decomposition and the generalized quantile regressions. Most of the results support previous research which concludes that the human and social capital indicators have a significant impact on earnings and that the wage gap is mainly due to structural effect. Moreover, the results show evidence of quicksand and glass ceiling effects that limit female income.
Journal: Applied Economics
Pages: 4834-4849
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1745750
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745750
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Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4834-4849
Template-Type: ReDIF-Article 1.0
Author-Name: Kwangil Bae
Author-X-Name-First: Kwangil
Author-X-Name-Last: Bae
Author-Name: Hankil Kang
Author-X-Name-First: Hankil
Author-X-Name-Last: Kang
Author-Name: Jangkoo Kang
Author-X-Name-First: Jangkoo
Author-X-Name-Last: Kang
Title: Can fat-tail create the momentum and reversal?
Abstract:
We suggest that fat-tail variations can cause both short-term momentum and long-term reversal simultaneously, in both the time series and cross-sectional returns of securities. The fat-tail of the distribution is known to explain many anomalies in the financial market, but not momentum. To support our argument, we adopt widely accepted models in the literature, which generate reversal only, and revise a single assumption: Each random variable follows a non-normal stable distribution rather than a normal distribution. This single difference generates additional short-term return momentum. This finding shows that 1) investor irrationality is not essential to generate both phenomena, and 2) we must be cautious not to overuse normal distributions in the models.
Journal: Applied Economics
Pages: 4850-4863
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1746481
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1746481
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Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4850-4863
Template-Type: ReDIF-Article 1.0
Author-Name: Lan Thanh Archer
Author-X-Name-First: Lan Thanh
Author-X-Name-Last: Archer
Author-Name: Parmendra Sharma
Author-X-Name-First: Parmendra
Author-X-Name-Last: Sharma
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Title: Do credit constraints always impede innovation? Empirical evidence from Vietnamese SMEs
Abstract:
Intrigued by literature findings that credit constrained firms are less likely to be innovative and bearing in mind that the evidence has so far largely been from developed economies, this study ventures to explore the relationship in the case of a developing economy. Focussing on Vietnam, using a biennial survey-based dataset spanning the 2005–2013 period, with around 2,500 SMEs per round, and a mix of econometric strategies, the findings of the study shed a new light in the literature on credit constraints vis-à-vis innovation relationships: credit constraints may not always impede innovation. Implications are discussed.
Journal: Applied Economics
Pages: 4864-4880
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751049
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751049
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Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4864-4880
Template-Type: ReDIF-Article 1.0
Author-Name: Aakrit Joshi
Author-X-Name-First: Aakrit
Author-X-Name-Last: Joshi
Author-Name: Brady P. Horn
Author-X-Name-First: Brady P.
Author-X-Name-Last: Horn
Author-Name: Robert P. Berrens
Author-X-Name-First: Robert P.
Author-X-Name-Last: Berrens
Title: Major league soccer expansion and property values: do sports franchises generate amenities or disamenities?
Abstract:
While amenity effects generated by sports stadiums or facilities have been studied extensively for housing markets, there has been significantly less attention focused on team effects generated by sports franchises alone. The objective of this analysis is to estimate the impact of Major League Soccer (MLS) expansion on property values, using nearby condominium sales from 2003–2016 in Seattle, Washington. Econometric results from hedonic pricing method and repeat sales regression indicate that property values depreciated after the Seattle Sounders Football Club was promoted to the MLS in 2009. The distance-decaying depreciation in condominium values occurs within a mile of the facility.
Journal: Applied Economics
Pages: 4881-4899
Issue: 44
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751050
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751050
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Handle: RePEc:taf:applec:v:52:y:2020:i:44:p:4881-4899
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Author-Name: Lauriano Ulica
Author-X-Name-First: Lauriano
Author-X-Name-Last: Ulica
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Title: Systemic risk in the Angolan interbank payment system – a network approach
Abstract:
In this work, we analyse the topology of the network of interbank payment flows settled via the real-time gross settlement system (RTGS) of the Angolan payment system (APS) during the fourth quarter of 2016, with the aim of discussing the APS resilience to systemic risk, focusing on its vulnerability in case of failures in the settlement of any bank payments. We conclude that (i) the Angolan RTGS payment network is sparse, characterized by low connectivity, (ii) it is a scale-free network with five banks with high connectivity, representing the main origin and destination of the settled transactions and concentrating about 47% of the total volume and amount of payments settled, which adds to contagion risk. However (iii) the systemic risk arising from the removal of a single participant from the network is low, since the largest bank in the system, with the greatest transacted volume and amount, accounts only for about 11% of the total transacted amounts. In addition, (iv) the adequate risk-mitigating operational processes of each of the RTGS subsystems safeguard the APS from systemic risk.
Journal: Applied Economics
Pages: 4900-4912
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751052
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751052
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Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4900-4912
Template-Type: ReDIF-Article 1.0
Author-Name: F. Javier Sánchez-Vidal
Author-X-Name-First: F. Javier
Author-X-Name-Last: Sánchez-Vidal
Author-Name: Myriam Hernández-Robles
Author-X-Name-First: Myriam
Author-X-Name-Last: Hernández-Robles
Author-Name: Antonio Mínguez-Vera
Author-X-Name-First: Antonio
Author-X-Name-Last: Mínguez-Vera
Title: Financial conservatism fosters job creation during economic crises
Abstract:
This article aims to analyse the phenomenon of financial conservatism in firms’ capital structures and relate it to their employment variation for a sample of Spanish companies during the 2008–2013 period, characterized by a sharp crisis and very high unemployment rates. Financial conservatism is described as following a low-leverage/high cash no-short-term capital structure policy. We use the noisy selection model that relates growth, age, and size, to which we add a dummy indicating financial conservatism. As the growth of a company is measured as its number of employees’ variation, we are ultimately analysing how financial conservatism affects job creation. The objective of this work is to stress the advantages of a financially conservative policy as the evidence shows that such a policy at a given enterprise is a positive factor for job creation, which in Macroeconomics terms means an improvement in economy’s employment. The average conservative company more likely to foster job creation is a small company belonging to the industry or services sector.
Journal: Applied Economics
Pages: 4913-4926
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751053
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751053
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Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4913-4926
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Amine Boutabba
Author-X-Name-First: Mohamed Amine
Author-X-Name-Last: Boutabba
Author-Name: Diadié Diaw
Author-X-Name-First: Diadié
Author-X-Name-Last: Diaw
Author-Name: Amandine Laré
Author-X-Name-First: Amandine
Author-X-Name-Last: Laré
Author-Name: Albert Lessoua
Author-X-Name-First: Albert
Author-X-Name-Last: Lessoua
Title: The impact of microfinance on energy access: a case study from peripheral districts of Lomé, Togo
Abstract:
This study seeks to understand the impact of microfinance on energy access in the peripheral districts of Lomé in Togo. We use descriptive statistics, multiple regression, propensity score matching and treatment effect models, involving 639 microfinance client and non-client households for the analysis. Our results show that microfinance reduces energy vulnerability, with microfinance clients having higher energy poverty indices and energy expenditures than non-client households. Based on the impact of microfinance on energy poverty reduction, we argue that it is important for policymakers to implement strategies that promote and create greater access to microfinance, as this has the potential to alleviate energy poverty and improve access to good quality, modern energy services in Togo.
Journal: Applied Economics
Pages: 4927-4951
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751800
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751800
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Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4927-4951
Template-Type: ReDIF-Article 1.0
Author-Name: Wongi Kim
Author-X-Name-First: Wongi
Author-X-Name-Last: Kim
Title: Impacts of RMB devaluation on China’s trade balances: a time-varying SVAR approach
Abstract:
In this article, I empirically examine time-varying effects of real renminbi (RMB) devaluation on China’s trade balances. To this end, I estimate a time-varying structural vector autoregression model with monthly data. Results demonstrated that effects of real RMB devaluation on China’s trade balances are time varying. In a few months after devaluation of RMB, trade balances worsen as predicted in J-curve theory in most sample periods. However, subsequent improvements of trade balances predicted in J-curve theory appear only in certain periods, particularly in 2000s. Finally, devaluation of RMB positively affects China’s GDP and OECD industrial production, although the size of effects varies across sample periods. Joining WTO, the global financial crisis and endogenous feedbacks induced by price effects seem to be important to understand these time-varying patterns.
Journal: Applied Economics
Pages: 4952-4966
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751801
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751801
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Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4952-4966
Template-Type: ReDIF-Article 1.0
Author-Name: Lori Tzu Yi Yang
Author-X-Name-First: Lori Tzu Yi
Author-X-Name-Last: Yang
Title: The influence of Taiwan’s stock market on Bitcoin’s price under Taiwan’s monetary policy threshold
Abstract:
This study uses a smooth transition autoregressive model with exogenous variables (STARX) to investigate whether there is a nonlinear relationship between Bitcoin and Taiwan’s stock market taking into account Taiwan’s monetary policy threshold during 2 February 2012 to 31 August 2019. The statistical results show there is a threshold effect and confirm a nonlinear relationship between Taiwan’s stock market and Bitcoin, with variations over time and across Bitcoin and Taiwan’s stock market. Specifically, we find that Bitcoin responds asymmetrically to Taiwan’s stock market according to the threshold value. Furthermore, the return on the closing price of TAIEX with a lag of two periods under Taiwan’s monetary policy threshold has a nonlinear impact on the return on the closing price of Bitcoin.
Journal: Applied Economics
Pages: 4967-4975
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1751802
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1751802
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Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4967-4975
Template-Type: ReDIF-Article 1.0
Author-Name: William Miles
Author-X-Name-First: William
Author-X-Name-Last: Miles
Title: Regional UK house price co-movement
Abstract:
Cyclical synchronization of home prices has important implications for monetary (and other) policies. Regional house price divergence, even over a business cycle, can inhibit labour mobility and prevent workers from moving to where they could add most to their own wages and overall growth. We study house price co-movement across the different UK regions with a method, that, unlike previously employed techniques, allows for time-varying estimates. We find first, that the UK exhibits more home price divergence compared to previously reported results for the US. Second, regions near London exhibit the most co-movement, and those further from London the most divergence. Third, London itself is in the ‘middle of the pack’ in terms of synchronization compared to other regions. This may reflect London’s status as a ‘global city’ and being the destination for housing demand from sources abroad. Lastly, segmentation has clearly been increasing, rather than decreasing in recent years.
Journal: Applied Economics
Pages: 4976-4991
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1752361
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752361
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Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4976-4991
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Cheng Wu
Author-X-Name-First: Ming-Cheng
Author-X-Name-Last: Wu
Author-Name: Andrew Yi-Hung Liang
Author-X-Name-First: Andrew Yi-Hung
Author-X-Name-Last: Liang
Author-Name: Lori Tzu-Yi Yang
Author-X-Name-First: Lori Tzu-Yi
Author-X-Name-Last: Yang
Author-Name: Chin-Mei Chou
Author-X-Name-First: Chin-Mei
Author-X-Name-Last: Chou
Title: The non-linear impact of oil price on the oil demand
Abstract:
A panel smooth transition regression model was adopted to analyse the non-linear impact of oil prices on oil demand. Data for 42 countries was obtained from the International Energy Agency for the time period spanning from January 1990 to June 2017. The results indicate that a threshold value does exist. Furthermore, when the oil price was lower than this threshold value, a positive relationship between oil price and oil demand was observed. When the price of oil was higher than the threshold value, however, a negative relationship between price and demand was found.
Journal: Applied Economics
Pages: 4992-5004
Issue: 45
Volume: 52
Year: 2020
Month: 09
X-DOI: 10.1080/00036846.2020.1752898
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752898
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Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4992-5004
Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Chieh Wen
Author-X-Name-First: Yi-Chieh
Author-X-Name-Last: Wen
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: Lagged country returns and international stock return predictability during business cycle recession periods
Abstract:
This study examines stock return predictability in business cycle fluctuations across 17 developed countries and 26 developing countries over the period from January 1970 to December 2019. We uncover that lagged U.S. returns can be regarded as a reliable predictor only during recessions. The results remain robust after controlling for commonly used return predictors. Our empirical findings carry some implications for the role of leading markets, fundamental uncertainty, change in investors’ beliefs and dynamics of stock return volatility in economic downturns.
Journal: Applied Economics
Pages: 5005-5019
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752899
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752899
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Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5005-5019
Template-Type: ReDIF-Article 1.0
Author-Name: Pawel Dobrzanski
Author-X-Name-First: Pawel
Author-X-Name-Last: Dobrzanski
Title: The efficiency of spending on R&D in Latin America region
Abstract:
Innovativeness is one of the key factors stimulating economic growth. Improving innovative capacities is especially important for developing countries. The Latin American region is characterized by a variety of innovation policies. In this article, the author attempts to answer the question of which Latin American countries most efficiently spend funds on R&D. The study presented in this article also verifies the hypothesis that increased spending on R&D does not result in a proportional increase in the intended innovative results. The main research methodology employed is data envelopment analysis (DEA), which allows for assessing input-output efficiency and indicates the efficiency frontier for the period between 2000 and 2017.
Journal: Applied Economics
Pages: 5020-5034
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752900
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752900
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Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5020-5034
Template-Type: ReDIF-Article 1.0
Author-Name: Haomin Zhang
Author-X-Name-First: Haomin
Author-X-Name-Last: Zhang
Author-Name: Zhijun Lin
Author-X-Name-First: Zhijun
Author-X-Name-Last: Lin
Author-Name: Ming Liu
Author-X-Name-First: Ming
Author-X-Name-Last: Liu
Author-Name: Kai Wang
Author-X-Name-First: Kai
Author-X-Name-Last: Wang
Title: Customer concentration and over-investment
Abstract:
This paper investigates the impact of customer concentration on a supplier firm’s over-investment behaviour. Based on a large sample analysis on the US market, we find that a supplier firm with higher degree of customer concentration is likely to over-invest beyond the optimal investment level determined by investment opportunities. We also reveal that the positive association between customer concentration and over-investment weakens when the largest customer is a government entity, when the duration of supplier–customer relationship extends, and when the supplier firm captures larger market shares in its industry.
Journal: Applied Economics
Pages: 5035-5045
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752901
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752901
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Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5035-5045
Template-Type: ReDIF-Article 1.0
Author-Name: Taewoo You
Author-X-Name-First: Taewoo
Author-X-Name-Last: You
Title: Behavioural biases and nonlinear adjustment: evidence from the housing market
Abstract:
Using the threshold vector error correction model, this study finds substantial evidence for asymmetric mean-aversion in the Korean housing market, arising from behavioural biases. In order to effectively capture behavioural biases from the prospect theory, special attention is paid to the extreme tails of price deviations from long-run rationality. The major findings are highly consistent with the prospect theory predicting the risk-aversion effect after prior losses and the house money effect after prior gains. The overall speed of adjustment at losses is assessed about 7 times as high as at gains. The evidence that price changes are serially dependent, even after controlling the behavioural biases, suggests that house prices are also driven by investors’ extrapolative expectation.
Journal: Applied Economics
Pages: 5046-5059
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752902
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752902
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Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5046-5059
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: Niranjan Sapkota
Author-X-Name-First: Niranjan
Author-X-Name-Last: Sapkota
Title: Predicting cryptocurrency defaults
Abstract:
We examine all available 146 Proof-of-Work-based cryptocurrencies that started trading prior to the end of 2014 and track their performance until December 2018. We find that about 60% of those cryptocurrencies were eventually in default. The substantial sums of money involved mean those bankruptcies will have an enormous societal impact. Employing cryptocurrency-specific data, we estimate a model based on linear discriminant analysis to predict such defaults. Our model is capable of explaining 87% of cryptocurrency bankruptcies after only one month of trading and could serve as a screening tool for investors keen to boost overall portfolio performance and avoid investing in unreliable cryptocurrencies.
Journal: Applied Economics
Pages: 5060-5076
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752903
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752903
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Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5060-5076
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: José L. Ruiz-Alba
Author-X-Name-First: José L.
Author-X-Name-Last: Ruiz-Alba
Author-Name: Raquel Ayestarán
Author-X-Name-First: Raquel
Author-X-Name-Last: Ayestarán
Title: UK tourism arrivals and departures: seasonality, persistence and time trends
Abstract:
Issues such as seasonality, persistence and trends are examined in the series referring to the number of UK arrivals and departures using techniques based on fractional integration. This methodology is much more flexible than others based on integer degrees of differentiation and permits us to describe in a more general way the effects of shocks in the series. Our results indicate that the series display significant time trends; they show high persistence with orders of integration in the fractional range, thus showing long-lasting effects of shocks; seasonality is an important issue, and in removing the seasonality through seasonal differentiation, the time trends disappear though persistence remains as a relevant feature of the data. Policy implications of the results obtained are displayed at the end of the article.
Journal: Applied Economics
Pages: 5077-5087
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752904
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752904
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Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5077-5087
Template-Type: ReDIF-Article 1.0
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Title: A simple model of financial grey rhino under insurer capital regulation
Abstract:
This paper develops a contingent claim model to examine how capital regulation affects an insurer’s optimal guaranteed rate and survival probability when the investment-oriented/life insurance policy-oriented financial grey rhino is complemented. The investment-oriented grey rhino effect increases the policies at an increased guaranteed rate (and thus a decreased interest margin) and further decreases the insurer’s survival probability. The policy-oriented grey rhino effect decreases the guaranteed rate and further decreases the survival probability. Stringent capital regulation enhances both the guaranteed rate and the insurer’s survival, thereby contributing to insurance stability. Both the enhanced effects become more significant when either the increased investment-oriented or policy-oriented financial grey rhino effect is considered, in particular, in a down-and-out call option framework model.
Journal: Applied Economics
Pages: 5088-5097
Issue: 46
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1752905
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1752905
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Handle: RePEc:taf:applec:v:52:y:2020:i:46:p:5088-5097
Template-Type: ReDIF-Article 1.0
Author-Name: Philipp Grunau
Author-X-Name-First: Philipp
Author-X-Name-Last: Grunau
Author-Name: Julia Lang
Author-X-Name-First: Julia
Author-X-Name-Last: Lang
Title: Retraining for the unemployed and the quality of the job match
Abstract:
In Germany, retraining is an important measure in active labour market policy, providing unemployed individuals with extensive vocational training. Using administrative data, we show that retraining participants are more likely to take up jobs that require their educational degree and are more often employed in those occupations for which they have received vocational training. Moreover, retraining leads to higher earnings. As these effects may be driven by the positive impact of retraining on employment, we additionally try to isolate the direct effect by restricting our analyses to those formerly unemployed who find employment irrespective of participation in retraining.
Journal: Applied Economics
Pages: 5098-5114
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1753879
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1753879
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Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5098-5114
Template-Type: ReDIF-Article 1.0
Author-Name: J. Dávalos
Author-X-Name-First: J.
Author-X-Name-Last: Dávalos
Author-Name: M. Claure
Author-X-Name-First: M.
Author-X-Name-Last: Claure
Author-Name: A. Leytón
Author-X-Name-First: A.
Author-X-Name-Last: Leytón
Title: The gender effects of the minimum wage under weak compliance with labour regulations: the case of Bolivia
Abstract:
This paper contributes to the minimum wage (MW) literature by providing new evidence on the gender effects of the MW in the context of weak compliance with labour regulations. We study Bolivia’s case, the country with the highest informal employment share in Latin America according to the International Labour Organization, during a favourable macroeconomic context characterized by a commodities boom that should have eased compliance with an active MW legislation. From a pooled cross-section of household surveys from 2005 to 2013 and a generalized difference-in-difference specification, we find evidence that the MW widened the hourly wage gender gap, and had negative effects on the formalization likelihood. Our findings stress the importance of enforcing compliance with the minimum wage legislation to reduce the gender wage gap.
Journal: Applied Economics
Pages: 5115-5128
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1754328
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1754328
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Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5115-5128
Template-Type: ReDIF-Article 1.0
Author-Name: Viktors Ajevskis
Author-X-Name-First: Viktors
Author-X-Name-Last: Ajevskis
Title: The natural rate of interest: information derived from a shadow rate model
Abstract:
The study proposes an estimation method of the natural rate of interest based on the shadow rate term structure of interest rates model and using information from nominal yields data. For the purpose of comparison and robustness check, different samples for the estimation of the natural rate of interest – three for the euro area and two for the US – are considered. The estimates based on all considered samples show a downturn trend in the estimated natural rates of interest for the euro area. However, since the beginning of 2013, this downward trend has levelled off. Compared to the results obtained by affine models, the shadow rate model produces lower estimates of the natural rates of interest. In order to demonstrate the use of the natural rate of interest, we employ the estimated series of the natural rate of interest in the balance-approach version of the Taylor rule. The results imply that, at the end of the sample in July 2017, Taylor rule-suggested policy rates were in line with the actual ECB policy rates.
Journal: Applied Economics
Pages: 5129-5138
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1757029
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1757029
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Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5129-5138
Template-Type: ReDIF-Article 1.0
Author-Name: Dae-Yong Ahn
Author-X-Name-First: Dae-Yong
Author-X-Name-Last: Ahn
Title: Competition and mergers in the retail market for toys
Abstract:
I study competition between big box retailers, K-Mart and Wal-Mart, and toy retailers, KB Toys and Toys R Us with the aim of estimating Wal-Mart’s effect on the profits of toy retailers. Using recent techniques for the moment inequality models, I estimate chains’ exit decisions in each market as arising from a Nash equilibrium of a static game of entry and exit. My results show that Wal-Mart has a significantly negative effect on the profits of KB Toys and Toys R Us, while the effects of KB Toys and Toys R Us are mostly positive on each other’s profits. I run a series of counterfactual simulations to study the effect of a merger between KB Toys and Toys R Us on post-merger market shares and concentration. Upon merging, the rate of exit drops from 52.3% to 48.6% for KB Toys and from 32.1% to 11.7% for Toys R Us. If the merging parties share distribution centres, the rate of exit drops even further to 31.1% for KB Toys or remains about the same at 12.2% for Toys R Us. Surprisingly, the merger lowers market concentration, as measured by the Herfindal–Hirschman Index.
Journal: Applied Economics
Pages: 5139-5157
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1757030
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1757030
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Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5139-5157
Template-Type: ReDIF-Article 1.0
Author-Name: Bekzod Sarikov
Author-X-Name-First: Bekzod
Author-X-Name-Last: Sarikov
Author-Name: Alexey Kuprianov
Author-X-Name-First: Alexey
Author-X-Name-Last: Kuprianov
Title: The effect of monetary policy on corporate bankruptcies: evidence from the United States
Abstract:
In this article, we study the relationship between monetary policy and corporate bankruptcies in the USA. The main hypothesis is that an increase in the monetary base or a decrease in the federal funds rate reduces the probability of corporate bankruptcies. The main intuition lies in the economic mechanism through which both of these actions accelerate inflation and lower the real value of corporate debt. The results strongly support the main hypothesis of the paper. In addition, we also study the impact of other macroeconomic variables on bankruptcy rates. Our findings show that the total reserves of depositary institutions and the overall performance of the US corporate sector are negatively related to the frequency of corporate failures.
Journal: Applied Economics
Pages: 5158-5168
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1757612
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1757612
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Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5158-5168
Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Miin Yu
Author-X-Name-First: Ming-Miin
Author-X-Name-Last: Yu
Author-Name: Nan-Hsing Hsiung
Author-X-Name-First: Nan-Hsing
Author-X-Name-Last: Hsiung
Author-Name: Li-Hsueh Chen
Author-X-Name-First: Li-Hsueh
Author-X-Name-Last: Chen
Title: Determinants of banks’ Nerlovian economic efficiency: a DEA-bootstrap approach
Abstract:
This study aims to evaluate the Nerlovian economic efficiency of Taiwanese commercial banks and its determinants by assuming the presence of an imperfectly competitive market using a two-stage estimation procedure: Nerlovian economic inefficiency and its components’ price, technical and allocative efficiencies computed and decomposed in the first stage, which are regressed on the explanatory variables with a bootstrapped truncated approach in the second stage. The estimation results show that in the first-stage analysis, the Nerlovian economic inefficiency of banks is primarily due to allocative inefficiency, and indicate the existence of price inefficiency in Taiwan. In the second-stage analysis, the results confirm that both the years in operation of the bank and the ratio of credit loans are the main determinants of banking profit efficiency. In addition, this study not only shows that publicly owned banks contribute to better price efficiency but also proves that loan loss reserve to total assets is negatively associated with technical efficiency. The equity ratio exerts an insignificant favourable impact on allocative efficiency. The findings of this research are essential for bank managers in Taiwan.
Journal: Applied Economics
Pages: 5169-5187
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1758619
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1758619
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Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5169-5187
Template-Type: ReDIF-Article 1.0
Author-Name: John Nkwoma Inekwe
Author-X-Name-First: John Nkwoma
Author-X-Name-Last: Inekwe
Title: Bank credit risk, grain production and the Indian economy
Abstract:
We generate measures of banking risk across Indian states and examine the relationship between banking risk and economic production in India. We find that banking risk co-moves with total grain production (TPG) and real gross domestic product (RGDP). The long-term impact of banking risk differs across Indian states. Ten states are negatively affected while one state maintains growth in RGDP. Likewise, the results show that six states are negatively affected while two states maintain growth in TPG. Banking risk is found to induce a larger decline in TPG than in RGDP at the national and state levels. Overall, banking risk shocks induce negative effects on both TPG and RGDP.
Journal: Applied Economics
Pages: 5188-5202
Issue: 47
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1758620
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1758620
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Handle: RePEc:taf:applec:v:52:y:2020:i:47:p:5188-5202
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian Fernandez-Perez
Author-X-Name-First: Adrian
Author-X-Name-Last: Fernandez-Perez
Author-Name: Bart Frijns
Author-X-Name-First: Bart
Author-X-Name-Last: Frijns
Author-Name: Ivan Indriawan
Author-X-Name-First: Ivan
Author-X-Name-Last: Indriawan
Author-Name: Yiuman Tse
Author-X-Name-First: Yiuman
Author-X-Name-Last: Tse
Title: Pairs trading of Chinese and international commodities
Abstract:
We investigate the profitability of a pairs trading strategy using Chinese and international commodity futures contracts covering the period January 2004 to February 2018. We use a time-series approach where the commodity pairs share a similar underlying. An out-of-sample test is employed to infer the performance of these pairs, allowing us to determine the optimal open and close positions for the pairs trading strategy. Applying this strategy to a portfolio of commodities yields an excess return of 2.08% per annum and a Sharpe ratio of 0.79. For a portfolio of metal futures, this strategy yields 5.32% excess returns and a Sharpe ratio of 1.47, whereas for gold-only futures, this strategy yields 7.39% excess returns and 1.95 Sharpe ratio. This performance is superior to traditional strategies based on term structure, momentum, and value portfolios. Arbitrage opportunities in these commodity pairs remain even after accounting for transaction costs and are robust to data-snooping bias.
Journal: Applied Economics
Pages: 5203-5217
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761009
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761009
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Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5203-5217
Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: A CBA of corrective lenses, including the benefits for reducing the symptoms of dementia
Abstract:
We carried out a CBA of corrective lenses (CLs) that had direct benefits, and included indirect benefits working through a reduction in dementia symptoms. The benefits took the form of a reduction in mortality that was expressed in monetary terms by using the value of a statistical life (VSL) methodology. The indirect benefits consisted of CLs first lowering dementia symptoms and in this way reducing mortality. Estimation of the impact on mortality of CLs and dementia symptoms was carried out using a random effects Logit regression on a large national panel data set provided by the National Alzheimer’s Coordinating Centre. The effect of CLs on dementia symptoms was estimated by a fixed effects regression. The VSL figure came from the literature. The net-benefits overall were positive and large, and even positive just from the indirect dementia benefits alone.
Journal: Applied Economics
Pages: 5218-5229
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761533
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761533
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Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5218-5229
Template-Type: ReDIF-Article 1.0
Author-Name: Bakhtear Talukdar
Author-X-Name-First: Bakhtear
Author-X-Name-Last: Talukdar
Author-Name: A. M. Parhizgari
Author-X-Name-First: A. M.
Author-X-Name-Last: Parhizgari
Title: Market returns and risk factors for the emerging economies
Abstract:
This paper creates daily factors (much like Fama and French) and monthly aggregate idiosyncratic volatility measures for 15 emerging economies. Data deficiencies, including firm balance sheet data, are bypassed by constructing daily country factors through principal components. We focus on each country’s aggregate idiosyncratic volatility. We derive empirical measures for these volatilities and test them against prior known results. In addition, we examine the attributes of these measures by employing regime-switching, trend tests, and multiple structural breaks. An expository effort is also made to interpret the derived factors and examine their performance. Our findings indicate that the derived volatility series are robust and empirically valid in correctly detecting most of the exact timing of known volatility periods. The derived factors and volatility series will be posted online for free public access and are expected to be updated on a regular basis.
Journal: Applied Economics
Pages: 5230-5243
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761534
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761534
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Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5230-5243
Template-Type: ReDIF-Article 1.0
Author-Name: Madhusudan Karmakar
Author-X-Name-First: Madhusudan
Author-X-Name-Last: Karmakar
Author-Name: Udayan Sharma
Author-X-Name-First: Udayan
Author-X-Name-Last: Sharma
Title: Measuring quantile risk hedging effectiveness: a GO-GARCH-EVT-copula approach
Abstract:
In this study, we propose a new GO-GARCH-EVT-copula combined approach to estimate minimum quantile risk hedge ratios. We examine the hedging effectiveness of the proposed model in comparison with three other competing models. In doing so, we consider thirty-five pairs of daily spot and futures price series data from various stock, currency, and commodity markets across the world. The evidence suggests that the proposed combined approach performs best in estimating minimum quantile risk hedge ratios. The superior performance is likely due to the combined approach’s ability to appropriately capture the statistical features of the data.
Journal: Applied Economics
Pages: 5244-5262
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761535
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761535
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Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5244-5262
Template-Type: ReDIF-Article 1.0
Author-Name: Isabelle Cadoret
Author-X-Name-First: Isabelle
Author-X-Name-Last: Cadoret
Author-Name: Emma Galli
Author-X-Name-First: Emma
Author-X-Name-Last: Galli
Author-Name: Fabio Padovano
Author-X-Name-First: Fabio
Author-X-Name-Last: Padovano
Title: How do governments actually use environmental taxes?
Abstract:
This paper empirically examines how governments actually use environmental taxes, by looking to what extent their resort to this type of taxation is consistent with three alternative interpretations of environmental taxes proposed by the welfare economics theoretical literature: the strict and the broad Pigouvian and the double dividend hypotheses. We also extend our analysis to an alternative vision of politics, the Leviathan model, to verify how governments that are imperfectly accountable use environmental taxes. Each theory leads to alternative testable hypotheses, which we verify on a sample that minimizes the analysts’ discretionary evaluations, the EU-28 countries that committed themselves to reducing the greenhouse gas emissions by 2020. The estimates lend support to the strict Pigouvian hypothesis and, to a lesser extent, to a version of the double dividend hypothesis, where personal income taxes are ‘recycled’ by environmental ones. The other interpretations do not appear consistent with the data.
Journal: Applied Economics
Pages: 5263-5281
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761536
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761536
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Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5263-5281
Template-Type: ReDIF-Article 1.0
Author-Name: Michael T. French
Author-X-Name-First: Michael T.
Author-X-Name-Last: French
Author-Name: Ioana Popovici
Author-X-Name-First: Ioana
Author-X-Name-Last: Popovici
Author-Name: Andrew R. Timming
Author-X-Name-First: Andrew R.
Author-X-Name-Last: Timming
Title: Analysing the effect of commuting time on earnings among young adults
Abstract:
A few recent studies find a positive relationship between workplace income and commuting distance among the general population. However, young adults, with less advanced labour market skills, might be more likely to accept longer commutes even if they are not compensated with higher earnings in the short-run. We examine the relationship between commuting time and earnings in a sample of young adults from the National Longitudinal Study of Adolescent to Adult Health. We employ various statistical approaches to disentangle the effects of commuting time on earnings while controlling for numerous socio-demographic factors, occupation, irregular work schedules or part-time work, transportation mode, and other explanatory variables. Our results indicate that 10 additional minutes of one-way commuting time is associated with a 2.9% (2.8%) increase in annual income for young adult men (women). These findings have implications for employers, young employees, workplace advocates, and policymakers as commuting is a prominent component of work–life balance for most individuals.
Journal: Applied Economics
Pages: 5282-5297
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761537
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761537
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Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5282-5297
Template-Type: ReDIF-Article 1.0
Author-Name: Liang Wu
Author-X-Name-First: Liang
Author-X-Name-Last: Wu
Author-Name: Shujuan Chen
Author-X-Name-First: Shujuan
Author-X-Name-Last: Chen
Title: Long memory and efficiency of Bitcoin under heavy tails
Abstract:
The long memory is usually defined via auto-covariances which further connect with Hurst exponent. The heavy tails in Bitcoin returns can cause infinite auto-covariances which make the analysis of long memory and market efficiency in Bitcoin based on estimation of Hurst exponent inappropriate. Few literatures focus on this problem. We provide two approaches based on shuffling method and rank-ordered technique to this problem, and further combine them to analyse the time-varying efficiency and long memory in Bitcoin using sliding window. Results show that the inefficiency and long memory exist in Bitcoin before 2014 and after mid-2017. Especially, the latest data reveal a recent new change that the Bitcoin market has become inefficient and exhibited long memory behaviour since mid-2017, but is turning back to efficiency recently. This change may be due to the frequent key events of Bitcoin in 2017 and 2018, which can break the weak efficiency of Bitcoin. The heavy negative tails with $$\alpha \lt 2$$α<2 before September 2016 validate the necessity of our analysis under heavy tails. Besides, the change trend and exact sub-periods of efficiency and long memory are first obtained via empirical mode decomposition of Hurst exponent estimates.
Journal: Applied Economics
Pages: 5298-5309
Issue: 48
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1761942
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1761942
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Handle: RePEc:taf:applec:v:52:y:2020:i:48:p:5298-5309
Template-Type: ReDIF-Article 1.0
Author-Name: Waqas Hanif
Author-X-Name-First: Waqas
Author-X-Name-Last: Hanif
Author-Name: Jose Arreola-Hernandez
Author-X-Name-First: Jose
Author-X-Name-Last: Arreola-Hernandez
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Author-Name: Thi Hong Van Hoang
Author-X-Name-First: Thi Hong Van
Author-X-Name-Last: Hoang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Regional and copula estimation effects on EU and US energy equity portfolios
Abstract:
The aim of this paper is to investigate the regional interdependence structure of energy equities in the US and in the EU. Based on weekly stock prices of 28 big energy firms in the two regions from 2008 to 2019, we compare the efficiency of using bivariate or multivariate copulas to describe the dependence structure of energy equities. Furthermore, we investigate the impact of the choice between these two methods on the performance of energy equity portfolios. Our empirical results show that multivariate copulas, such as C-Vine, allow to better describe the dependence structure of energy equities. We also find that there is a stronger and more complex dependence structure among EU energy equities than among US energy equities. Our scenario analysis also shows that the dependence structure is stronger during the GFC while being weaker during the ESDC. More importantly, the correlation matrix obtained from the multivariate copula method allows to obtain optimal mean-CVaR portfolios with a higher performance than that from the bivariate copula method. More importantly, optimal portfolios constituted with multivariate copulas allow to reduce the portfolio’s sensitivity to oil prices.
Journal: Applied Economics
Pages: 5311-5342
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1763244
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1763244
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Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5311-5342
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Alfano
Author-X-Name-First: Simon
Author-X-Name-Last: Alfano
Author-Name: Stefan Feuerriegel
Author-X-Name-First: Stefan
Author-X-Name-Last: Feuerriegel
Author-Name: Dirk Neumann
Author-X-Name-First: Dirk
Author-X-Name-Last: Neumann
Title: Language sentiment in fundamental and noise trading: evidence from crude oil
Abstract:
Recent research has found the language sentiment in financial news to be a substantial driver of prices in financial markets, though there are two diametrically opposed interpretations for this: either markets perceive news sentiment as fundamental information (thus leading to changes in the valuation of assets) or news sentiment conveys a noise signal (thus contributing to the stochastic component of prices). The opposite roles are resolved in the context of crude oil prices by decomposing price movements into two components referring to fundamental and noise trading. Contrary to theoretical arguments in prior literature, we find empirical results supporting both interpretations.
Journal: Applied Economics
Pages: 5343-5363
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1763245
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1763245
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Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5343-5363
Template-Type: ReDIF-Article 1.0
Author-Name: Jos L.T. Blank
Author-X-Name-First: Jos L.T.
Author-X-Name-Last: Blank
Title: The use of the scaling property in a frontier analysis of a system of equations
Abstract:
This article presents a one-stage efficiency frontier analysis based on the scaling property. This type of analysis is a not very often applied in empirical work in spite of its nice features. Due to the scaling property the influence of exogenous (managerial) variables on efficiency can be modelled and estimated in one stage. It also opens the possibility of estimating a system of equations, consisting of a cost function and the corresponding cost share equations. The model is applied to a unique data set of Dutch secondary education school boards in the period 2007–10, not only consisting of regular data on cost, inputs and outputs, but also of specific data on operational management. The model provides reliable and plausible estimates for the cost efficiency, scale elasticity, and technical change. Average cost efficiency is about 96%. Economies of scale prevail for school boards with size less than 0.8 times average size, whereas annual productivity growth is 2.2% on average.
Journal: Applied Economics
Pages: 5364-5374
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1763246
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1763246
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Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5364-5374
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoqi Huang
Author-X-Name-First: Xiaoqi
Author-X-Name-Last: Huang
Author-Name: Wei Liu
Author-X-Name-First: Wei
Author-X-Name-Last: Liu
Author-Name: Yuzhao Wu
Author-X-Name-First: Yuzhao
Author-X-Name-Last: Wu
Title: Currency internationalization and valuation effects: based on the threshold model
Abstract:
Based on the three functions of currency internationalization, including exchange medium, pricing currency and foreign reserve, this paper explores how the degree of currency internationalization affects the impact of the exchange rate and the asset price on valuation effects. Using samples of 161 countries or regions from 2001 to 2016 and the threshold regression method, we find that, firstly, there is a threshold effect of the exchange rate on valuation effects due to currency internationalization. The higher the comprehensive level of currency internationalization is, the greater the positive impact of the exchange rate on valuation effects will be. Secondly, the threshold effect of the asset price on valuation effects due to currency internationalization is not significant because of the high stickiness of asset price. Besides, compared with developed countries, currency internationalization is more important to increase valuation effects through exchange rate channel and asset price channel in developing countries or regions. Finally, there are some differences in the three types of currency internationalization functions. The promotion of exchange medium function will lead to a greater positive impact of the exchange rate on valuation effects, as well as pricing currency function. However, the foreign reserve function has no such effect.
Journal: Applied Economics
Pages: 5375-5398
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1763907
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1763907
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Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5375-5398
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Jebaraj Benjamin
Author-X-Name-First: Samuel Jebaraj
Author-X-Name-Last: Benjamin
Author-Name: Dereje Getachew Regasa
Author-X-Name-First: Dereje Getachew
Author-X-Name-Last: Regasa
Author-Name: Nirosha Hewa Wellalage
Author-X-Name-First: Nirosha Hewa
Author-X-Name-Last: Wellalage
Author-Name: M Srikamalaladevi M Marathamuthu
Author-X-Name-First: M Srikamalaladevi
Author-X-Name-Last: M Marathamuthu
Title: Waste disclosure and corporate cash holdings
Abstract:
In this paper, we address an important and emerging question: Can firms’ voluntary waste disclosure affect corporate cash holdings? Using a sample of S&P 500 firms, we find strong evidence for a positive relationship between waste disclosure and the cash holding policy of firms. Furthermore, we find that waste disclosure significantly increases cash holdings only for firms with strong corporate governance quality. We also find that the significant relationship between waste disclosure and cash holdings remains unchanged only for firms that operate in environmentally sensitive industries. Our paper provides novel evidence on the role of voluntary waste disclosure as an environmental dimension that influences the cash policy of firms and highlights the little-known issue of waste disclosure as a significant research topic.
Journal: Applied Economics
Pages: 5399-5412
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764480
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764480
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Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5399-5412
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas M. Fullerton
Author-X-Name-First: Thomas M.
Author-X-Name-Last: Fullerton
Author-Name: Esmeralda P. Muñiz
Author-X-Name-First: Esmeralda P.
Author-X-Name-Last: Muñiz
Title: Credit union loan rate determinants in the United States
Abstract:
Credit union participation in the consumer lending market continues to grow as an increasing number of consumers and small businesses become members and open accounts. This study investigates the determinants of credit union loan rates during a period of economic expansion in the United States using fourth quarter 2015 data for 5,942 credit unions. Five different interest rate categories are analysed using nine potential loan rate determinants. Results indicate that loan rates tend to be lower as credit union size increases, while high ratios for net charge-offs and operating costs cause interest rates to increase. Opposite to what is expected, loan rates are positively correlated with regional unemployment rates. A possible explanation for this outcome is that weak labour markets are associated with elevated loan delinquency rates and, therefore, greater default risks resulting in higher interest rates.
Journal: Applied Economics
Pages: 5413-5425
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764481
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764481
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Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5413-5425
Template-Type: ReDIF-Article 1.0
Author-Name: Debdatta Pal
Author-X-Name-First: Debdatta
Author-X-Name-Last: Pal
Author-Name: Subrata Kumar Mitra
Author-X-Name-First: Subrata Kumar
Author-X-Name-Last: Mitra
Title: Time-frequency dynamics of return spillover from crude oil to agricultural commodities
Abstract:
We explore return spillover from crude oil to ethanol, corn, soybean and wheat on daily data during 17 May 2005–27 June 2018. This study is unique in capturing the time-frequency dynamics of return spillover. We use the frequency-dependent spillover measure that jointly captures information from time and frequency domain. We also identify two endogenous break dates that segregate the study period in three sub-periods. Our results indicate that return spillover from crude oil to ethanol, major feed stocks (i.e. corn and soybean) and food crop (i.e. wheat) is pronounced only in lower frequency band or long-term (more than 1 month). We find that return spillover is stronger only during 2005–2010, i.e. the period of energy and food crisis.
Journal: Applied Economics
Pages: 5426-5445
Issue: 49
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764482
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764482
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Handle: RePEc:taf:applec:v:52:y:2020:i:49:p:5426-5445
Template-Type: ReDIF-Article 1.0
Author-Name: María Candelaria Barrios González
Author-X-Name-First: María Candelaria Barrios
Author-X-Name-Last: González
Author-Name: Heather L. R. Tierney
Author-X-Name-First: Heather L. R.
Author-X-Name-Last: Tierney
Author-Name: Zafar Nazarov
Author-X-Name-First: Zafar
Author-X-Name-Last: Nazarov
Author-Name: Myeong Hwan Kim
Author-X-Name-First: Myeong Hwan
Author-X-Name-Last: Kim
Title: Divided: the two Americas-examining club convergence in the U.S.
Abstract:
This paper finds club convergence within the 50 U.S. states using the Phillips and Sul regression-based convergence test with per capita real state domestic product from 1997 to 2017. Two clubs with diverging transition paths are found. Clubs 1 and 2 mimics the divide that is seen in the flow of funds from the federal government to the states. Hence, the Phillips and Sul logt test is telling the tale of there being two Americas if all factors remain the same, but this need not be the case with the proper policy prescription.
Journal: Applied Economics
Pages: 5783-5796
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776832
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776832
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Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5783-5796
Template-Type: ReDIF-Article 1.0
Author-Name: Arne Feddersen
Author-X-Name-First: Arne
Author-X-Name-Last: Feddersen
Author-Name: Brad R. Humphreys
Author-X-Name-First: Brad R.
Author-X-Name-Last: Humphreys
Author-Name: Brian P. Soebbing
Author-X-Name-First: Brian P.
Author-X-Name-Last: Soebbing
Title: Casual bettors and sentiment bias in NBA and NFL betting
Abstract:
Sentiment bias, defined as investment decisions made for reasons unrelated to fundamentals and related to popularity, represents a common research topic in finance and economics. Empirical research on sentiment bias frequently uses data from sports betting markets. While research generally finds evidence of sentiment bias, in particular, due to team popularity, the prevalence of this bias among fans and bettors in many sports remains unclear and identification of markets with relatively larger numbers of bettors with sentiment bias poses empirical challenges. We analyse outcomes in betting markets for games played in two North American team sports leagues, the National Basketball Association (NBA) and National Football League (NFL) from the 2012–13 to 2016–17 seasons and investigate how game timing, in terms of games played on weekdays and weekends, may affect the presence of bettors with popularity-based sentiment bias. Probit model estimates explaining the probability that a bet on a team wins indicate patterns consistent with the presence of bettors with sentiment bias in the markets for betting on games in the NFL but not in the NBA, and the presence of more such bettors for NFL games played on weekends.
Journal: Applied Economics
Pages: 5797-5806
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776833
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776833
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Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5797-5806
Template-Type: ReDIF-Article 1.0
Author-Name: Ficawoyi Donou-Adonsou
Author-X-Name-First: Ficawoyi
Author-X-Name-Last: Donou-Adonsou
Author-Name: Gyan Pradhan
Author-X-Name-First: Gyan
Author-X-Name-Last: Pradhan
Author-Name: Hem C. Basnet
Author-X-Name-First: Hem C.
Author-X-Name-Last: Basnet
Title: Remittance inflows and financial development: evidence from the top recipient countries in Sub-Saharan Africa
Abstract:
This paper utilizes a panel cointegration approach to investigate the relationship between remittances and financial development in the top remittance recipient countries in Sub-Saharan Africa. Our results point to a significant and positive long-run relationship. More specifically, the pooled-mean group estimates indicate that a one-percentage point increase in remittance inflows promotes financial development by more than one percentage point. In addition, the results support the existence of bidirectional causality between remittances and financial development in the long-run. We also find some evidence that remittance pricing has a negative impact on the long-run relationship between remittances and financial development. While the results suggest that remittance inflows promote financial development, migrant workers may be timing the foreign exchange market to remit.
Journal: Applied Economics
Pages: 5807-5820
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776834
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776834
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Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5807-5820
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo M. Marini
Author-X-Name-First: Matteo M.
Author-X-Name-Last: Marini
Author-Name: Aurora García-Gallego
Author-X-Name-First: Aurora
Author-X-Name-Last: García-Gallego
Author-Name: Luca Corazzini
Author-X-Name-First: Luca
Author-X-Name-Last: Corazzini
Title: Communication in a threshold public goods game under ambiguity
Abstract:
This paper offers evidence on the impact of communication on the provision of public goods whose quality is uncertain, such as investment in prevention or fundraising in favour of non-governmental organizations (NGO). We run a laboratory experiment with two treatments, where the control variable is pre-play communication via unrestricted text chat. A binary threshold public goods game with four-person groups, threshold of three contributors and provision mechanism with elements of ambiguity is at the core of the design. A private signal linked to the real value of the public good supports the contribution decision. We find that unexpected low-valued public goods can undermine future willingness to contribute, although the benefits of communication still prevail in the form of higher public good provision. We also detect unprecedented inefficiency coming from overcontribution, given that subjects tend to neglect the free-rider problem. Chat analysis reveals that players favour the minimization of ambiguity over the maximization of the group earnings, so that we finally speculate that under uncertainty satisficing is more salient than optimizing.
Journal: Applied Economics
Pages: 5821-5842
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776835
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776835
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Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5821-5842
Template-Type: ReDIF-Article 1.0
Author-Name: Arnar Buason
Author-X-Name-First: Arnar
Author-X-Name-Last: Buason
Author-Name: Dadi Kristofersson
Author-X-Name-First: Dadi
Author-X-Name-Last: Kristofersson
Author-Name: Kyrre Rickertsen
Author-X-Name-First: Kyrre
Author-X-Name-Last: Rickertsen
Title: Demand systems and frequency of purchase models
Abstract:
Understanding the frequencies of purchase and the average purchased quantities is important for marketing strategies such as the loss-leader pricing strategy. We develop a framework for analysing a demand system incorporating both these dimensions and show how the results can be used to formulate profitable marketing strategies for large food retailers. In our microeconomic model, total purchases are determined by two demand systems; one for frequencies and one for average quantities purchased conditional on positive purchase frequencies. An econometric model was developed to estimate the two systems by a Bayesian estimation method, which allows for an unrestricted covariance structure within each system. We estimated the systems using French scanner data for purchases of fresh salmon, fresh white fish and other fresh fish. The own-price elasticities for total quantities purchased were very similar in magnitude, whereas the own-price elasticities for purchase frequencies and average quantities purchased varied more. This variation can be used to determine good loss-leader products for a large retailer. In our case, it involves lowering the price of salmon and increasing the price of white fish.
Journal: Applied Economics
Pages: 5843-5858
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776836
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776836
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Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5843-5858
Template-Type: ReDIF-Article 1.0
Author-Name: HaiYue Liu
Author-X-Name-First: HaiYue
Author-X-Name-Last: Liu
Author-Name: Yile Wang
Author-X-Name-First: Yile
Author-X-Name-Last: Wang
Author-Name: Dongmei He
Author-X-Name-First: Dongmei
Author-X-Name-Last: He
Author-Name: Cangyu Wang
Author-X-Name-First: Cangyu
Author-X-Name-Last: Wang
Title: Short term response of Chinese stock markets to the outbreak of COVID-19
Abstract:
China’s economy and the Asian stock markets have been severely impacted by the COVID-19 outbreak. This article used an event study method to calculate the abnormal returns (AR) in the 10 trading days following the outbreak, from which it was found that both the Chinese and Asian stock markets had significantly declined, with the cumulative abnormal returns (CAR) remaining negative in all the examined event window periods. This article also analysed the different industry index responses to the epidemic, from which it was found that the pharmaceutical manufacturing, software and IT services both had positive CAR, while transportation, lodging and catering had negative CAR during the event window. These results reflected the investors’ expectations for the different industries and the economy as a whole under the outbreak of the contagious coronavirus.
Journal: Applied Economics
Pages: 5859-5872
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776837
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776837
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Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5859-5872
Template-Type: ReDIF-Article 1.0
Author-Name: Tanweer Akram
Author-X-Name-First: Tanweer
Author-X-Name-Last: Akram
Author-Name: Huiqing Li
Author-X-Name-First: Huiqing
Author-X-Name-Last: Li
Title: JGBs’ chronically low nominal yields: a VEC approach
Abstract:
Low short-term interest rates, induced by the Bank of Japan’s (BoJ) accommodative monetary policy, is mainly responsible for keeping long-term Japanese government bonds’ (JGBs) nominal yields exceptionally low for a protracted period. Elevated government debt and deficit ratios do not exert upward pressure on JGBs’ nominal yields. This paper provides an empirical investigation of chronically low nominal yields of JGBs from a Keynesian perspective. It deploys a Vector Error Correction (VEC) approach to model long-term government bond yields.
Journal: Applied Economics
Pages: 5873-5893
Issue: 53
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1776838
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1776838
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Handle: RePEc:taf:applec:v:52:y:2020:i:53:p:5873-5893
Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Grau
Author-X-Name-First: Aaron
Author-X-Name-Last: Grau
Author-Name: Martin Odening
Author-X-Name-First: Martin
Author-X-Name-Last: Odening
Author-Name: Matthias Ritter
Author-X-Name-First: Matthias
Author-X-Name-Last: Ritter
Title: Land price diffusion across borders – the case of Germany
Abstract:
Land market regulations are often justified by the assumption that activities of foreign and non-agricultural investors drive up prices in domestic land markets. However, empirical knowledge about the dynamics of agricultural land prices across borders is sparse. Using the German reunification as a natural experiment, we study the effect of the former inner German border on the dynamics of agricultural land prices in East and West Germany. We apply a land price diffusion model with an error correction specification to analyse spatial agricultural land markets. A novel feature of our model is its ability to distinguish price diffusion within states and across state borders. We provide evidence for a persistent border effect given that the fraction of spatially integrated counties is larger within states than across the former border. Moreover, we observe non-significant error correction terms for many counties along the former border. From a policy perspective, it is striking to realize that even 25 years after German reunification, pronounced land price differences persist. It is quite likely that price diffusion through existing borders within the EU would take even more time given language barriers, different institutional frameworks, and information asymmetries between domestic and foreign market participants.
Journal: Applied Economics
Pages: 5446-5463
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2019.1673299
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1673299
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Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5446-5463
Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Aldieri
Author-X-Name-First: Luigi
Author-X-Name-Last: Aldieri
Author-Name: Cristian Barra
Author-X-Name-First: Cristian
Author-X-Name-Last: Barra
Author-Name: Nazzareno Ruggiero
Author-X-Name-First: Nazzareno
Author-X-Name-Last: Ruggiero
Author-Name: Concetto Paolo Vinci
Author-X-Name-First: Concetto Paolo
Author-X-Name-Last: Vinci
Title: Innovative performance effects of institutional quality: an empirical investigation from the Triad
Abstract:
Using data for a set of 823 R&D-intense manufacturing firms within the Triad and the Quality of Government (QoG) dataset over the 2002–2010 period, this article investigates the effects of institutional quality upon firms’ inefficiency, through the application of a Stochastic Frontier Approach (SFA). Empirical evidence, which is robust to alternative specifications of the technology employed and different lag structures in R&D activities, reveals that improvements in the quality of institutions significantly reduce firms’ inefficiency and suggests that, among the set of relevant institutional factors considered, a pre-eminent role is found for the rule of law.
Journal: Applied Economics
Pages: 5464-5476
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764483
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764483
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Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5464-5476
Template-Type: ReDIF-Article 1.0
Author-Name: Kaili Peng
Author-X-Name-First: Kaili
Author-X-Name-Last: Peng
Author-Name: Chen Yang
Author-X-Name-First: Chen
Author-X-Name-Last: Yang
Author-Name: Yao Chen
Author-X-Name-First: Yao
Author-X-Name-Last: Chen
Title: Land transfer in rural China: incentives, influencing factors and income effects
Abstract:
Land transfer incentives and their effect on farmers’ income in developing countries have been widely examined in the literate, but little is known about the driving mechanism of rural household income effect during land transfer. To fill in this gap, this paper explains the incentives of land transfer, analyses the influencing factors of farmers’ decision on land transfer, then measures the income effects of land transfer and identifies the main sources of income effects, utilizing open-access data collected through the China Family Panel Studies. The empirical results show that land flow out or in is beneficial to raise farmers’ income, indicating that the income effects have a positive feedback to farmers’ decision on land transfer. Further analyses reveal that land flow-out farmers and land flow-in farmers have different main sources of income growth. Our finding suggest that optimizing the incentive role of China’s existing rural land property system can help orderly flow of rural land resources, which subsequently increases rural household income.
Journal: Applied Economics
Pages: 5477-5490
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1764484
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1764484
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Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5477-5490
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Kai Tim Wong
Author-X-Name-First: Douglas Kai Tim
Author-X-Name-Last: Wong
Title: A re-examination of the impacts of macroeconomic and financial shocks on real exchange rate fluctuation: evidence from G7 and Asian countries
Abstract:
This paper aims to investigate the sources of real exchange rate fluctuation by utilizing sign restrictions in structural vector autoregressive (SVAR) method. Under an agnostic identification scheme, the empirical results show that the delayed overshooting puzzle still exists in response to monetary shock even if price puzzle is ruled out by construction. In contrast, all countries experience a significant initial real depreciation, and then gradually appreciate in response to currency risk premium (CRP) shock. This finding is consistent with Dornbusch’s overshooting model. In addition, I examine the importance of investors’ expectations in determining the short-term variations in the real exchange rate. The results indicate that the CRP and expectation shocks obviously outperformed the demand, supply and monetary shocks in terms of explaining the real exchange rate fluctuation.
Journal: Applied Economics
Pages: 5491-5515
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1765962
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765962
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Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5491-5515
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Cameron
Author-X-Name-First: Samuel
Author-X-Name-Last: Cameron
Author-Name: Hendrik Sonnabend
Author-X-Name-First: Hendrik
Author-X-Name-Last: Sonnabend
Title: Pricing the Groove: hedonic equation estimates for rare vinyl records
Abstract:
This contribution adds to the economic literature on the market value of rarity in markets for cultural collectible goods by studying the price of rare audio recordings (chiefly vinyl) sold on the online marketplace Discogs. Community-based variables serve as proxies for (inverse) rarity and (potential) demand. Results show that the elasticity of price with respect to our measure of inverse rarity (demand) ranges between −0.120 and −0.140 (0.150 and 0.160). In addition, effects of hedonic characteristics such as the popularity or collectibility of an artist can be identified. Finally, the study provides evidence for premia for rarity at the top end of the distribution of prices.
Journal: Applied Economics
Pages: 5516-5530
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1765963
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765963
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Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5516-5530
Template-Type: ReDIF-Article 1.0
Author-Name: Corinna Hentschker
Author-X-Name-First: Corinna
Author-X-Name-Last: Hentschker
Author-Name: Ansgar Wübker
Author-X-Name-First: Ansgar
Author-X-Name-Last: Wübker
Title: Quasi-experimental evidence on the effectiveness of heart attack treatment in Germany
Abstract:
Medical technological progress has been shown to be the main driver of health care costs. A key policy question is whether new treatment options are worth the additional costs. In this analysis we assess the causal effect of percutaneous transluminal coronary angioplasty (PTCA), a major new heart attack treatment, on mortality. We use a full sample of administrative hospital data from Germany for the years 2005 to 2007. To account for non-random treatment assignment of PTCA, instrumental variable approaches are implemented that aim to randomize patients into getting PTCA independent of heart attack severity. Instruments include differential distances to PTCA hospitals and regional PTCA rates. Our results suggest a 4.5 absolute percentage point mortality reduction for patients who have access to PTCA compared to patients receiving only conservative treatment. We relate mortality reduction to the additional costs for this treatment and conclude that PTCA treatment is cost-effective in lowering mortality for AMI patients at reasonable cost-effectiveness thresholds.
Journal: Applied Economics
Pages: 5531-5545
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1765964
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765964
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Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5531-5545
Template-Type: ReDIF-Article 1.0
Author-Name: María José Quinteros
Author-X-Name-First: María José
Author-X-Name-Last: Quinteros
Author-Name: Rafael Sánchez
Author-X-Name-First: Rafael
Author-X-Name-Last: Sánchez
Author-Name: Mauricio G. Villena
Author-X-Name-First: Mauricio G.
Author-X-Name-Last: Villena
Title: How do business schools compete in Latin America? Stability and best predictors of success for the AmericaEconomia MBA Ranking
Abstract:
The main aim of this paper is to present a longitudinal analysis of the AmericaEconomia MBA Ranking for the period 2005–2014. AmericaEconomia was the first international ranking specifically devoted to Latin American business schools, and with data gathered from this publication, we build a panel to study its stability and the main determinants of a school‘s position in such ranking. We examine the reliability of the ranking, that is whether changes in the relative positions are not just due to white noise, and compare its stability with those of the US and other global rankings. We also empirically determine which are the key quality variables this ranking is promoting for Latin America Business Schools and the evolution of these business schools during the period under study. Unlike previous literature that usually considers dynamic Tobit models for ranking analysis, we put forwards an alternative methodology based on a system GMM estimator with first-differenced instruments. We argue that dynamic Tobit models are appropriate only if you have truncated data about the ranking variable but full data on Business Schools variables.
Journal: Applied Economics
Pages: 5546-5563
Issue: 50
Volume: 52
Year: 2020
Month: 10
X-DOI: 10.1080/00036846.2020.1765965
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765965
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Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5546-5563
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Nordström
Author-X-Name-First: Martin
Author-X-Name-Last: Nordström
Title: Consumption and the interest rate – A changing dynamic?
Abstract:
This article addresses the question of whether the relation between the short interest rate and consumption growth has been stable over the financial crisis and the ensuing period of unconventional monetary policy. The question is addressed by assessing models using constant or drifting parameters as well as models with or without stochastic volatility in a Bayesian VAR framework, based on data from the USA and Sweden. According to the results, the response of interest rates to shocks in consumption growth has decreased for both countries, which could be because the central banks were constrained by the zero lower bound. When shadow rates are used to study the impact of unconventional monetary policy the results suggest that the Federal Reserve successfully maintained an active monetary policy in spite of the zero lower bound. The responsiveness of the Riksbank, on the other hand, decreases in face of the zero lower bound even when unconventional monetary policy is considered. The response of consumption growth to short interest rates is best modelled as constant over the period. Finally, results support the inclusion of stochastic volatility throughout estimations.
Journal: Applied Economics
Pages: 5564-5578
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1765966
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1765966
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Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5564-5578
Template-Type: ReDIF-Article 1.0
Author-Name: Fumin Deng
Author-X-Name-First: Fumin
Author-X-Name-Last: Deng
Author-Name: Yaqi Wang
Author-X-Name-First: Yaqi
Author-X-Name-Last: Wang
Author-Name: Zhi Li
Author-X-Name-First: Zhi
Author-X-Name-Last: Li
Author-Name: Xuedong Liang
Author-X-Name-First: Xuedong
Author-X-Name-Last: Liang
Title: China’s Technology Spillover Effects in the Countries along the Belt and Road — Evidence from 49 BRI Countries
Abstract:
China ’s aims for the Belt and Road Initiative (BRI) are to improve the trade and investment conditions along the BRI routes and develop a value-sharing platform with countries along the route to promote mutual benefits. Studies have found it’s possible that international trade and investment could lead to technological progress in the host countries. However, over the past 7 years, the effects of the BRI have not been fully evaluated and therefore, there is no clear evidence as to whether China, as an emerging economy, has had the ability to promote technology development in the BRI countries, or as to whether the BRI countries have the ability to effectively absorb imported technology. Therefore, to clarify the gains of the BRI and provide future guarantees for political mutual trust and deepening economic integration, this paper examined the technological progress in 49 BRI countries from 2003 to 2017. It was found that China had dual-channel technology spillover effects from trade and investment with the evaluated BRI countries; with the introduction of the BRI, the trade channel technology spillover effects had an increasing trend and the investment impacts were more persistent.
Journal: Applied Economics
Pages: 5579-5594
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1767282
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1767282
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Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5579-5594
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Gill
Author-X-Name-First: Andrew
Author-X-Name-Last: Gill
Author-Name: Kristin J. Kleinjans
Author-X-Name-First: Kristin J.
Author-X-Name-Last: Kleinjans
Title: The effect of the fall of the Berlin Wall on children’s noncognitive skills
Abstract:
The noncognitive skill of conscientiousness has been linked to favourable labour market and health outcomes. But how is conscientiousness affected by events that happen in childhood? We investigate the effects of negative parental selection and economic and social upheaval on conscientiousness in adulthood using data from the German Socioeconomic Panel (SOEP). Our identification strategy exploits the steep drop in fertility that occurred in the former East Germany following the fall of the Berlin Wall and the collapse of the socialist regime. Using an event study analysis and a difference-in-differences estimator with the former West Germany as a control group, we find that women conceived in East Germany in the three-year period following the fall the Berlin Wall are less conscientious as adults than women born after this period and before the fall of the Berlin Wall. We interpret our findings as evidence of a detrimental effect of negative parental selection on women’s conscientiousness. In contrast, we find no effects of negative parental selection on the conscientiousness of men.
Journal: Applied Economics
Pages: 5595-5612
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770189
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770189
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Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5595-5612
Template-Type: ReDIF-Article 1.0
Author-Name: Xian Liu
Author-X-Name-First: Xian
Author-X-Name-Last: Liu
Author-Name: Barrett E. Kirwan
Author-X-Name-First: Barrett E.
Author-X-Name-Last: Kirwan
Title: Political influence in the distribution of agricultural disaster payments
Abstract:
This paper examines the impact of committee membership and electoral votes on the distribution of ad hoc agricultural disaster payments across U.S. counties. Our results show that both House oversight committees and political parties determine the allocation of payments. We find a positive and significant committee membership effect for both the Agriculture committee and the Appropriations committee, although the effect of the latter is due mainly to its majority members and the Agriculture subcommittee. Our results also show that parties target benefits to their core constituents, supporting the core voter models. Areas where the majority party have higher levels of electoral support tend to receive larger shares of payments.
Journal: Applied Economics
Pages: 5613-5628
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770190
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770190
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Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5613-5628
Template-Type: ReDIF-Article 1.0
Author-Name: Rodney Fort
Author-X-Name-First: Rodney
Author-X-Name-Last: Fort
Author-Name: Young H. Lee
Author-X-Name-First: Young H.
Author-X-Name-Last: Lee
Title: Transition to an unbalanced Sports League schedule: adding the analysis of outcome uncertainty
Abstract:
We extend the literature on unbiased estimators of sports league outcomes to include outcome uncertainty. While competitive balance and outcome uncertainty are related, generally, they are not the same thing. We show that an extant unbiased estimator of competitive balance, and our new unbiased estimator of outcome uncertainty, bear this out. The impacts on both competitive balance and outcome uncertainty, moving from a balanced to an unbalanced schedule, are demonstrated via numerical analysis. Finally, the unbiased estimators are employed to test the implications of our numerical analysis on the move by the Scottish Professional Football League to an unbalanced schedule. Results conform to our simulations.
Journal: Applied Economics
Pages: 5629-5638
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770191
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770191
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Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5629-5638
Template-Type: ReDIF-Article 1.0
Author-Name: Zhaobin Fan
Author-X-Name-First: Zhaobin
Author-X-Name-Last: Fan
Author-Name: Yongli Cheng
Author-X-Name-First: Yongli
Author-X-Name-Last: Cheng
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Title: Macroeconomic uncertainty, cultural traits and entrepreneurship
Abstract:
The relationship between macroeconomic uncertainty and entrepreneurial activities has been the subject of intense debate among researchers. However, existing empirical studies report mixed findings. By examining the mediating role of cultural traits, we attempt to reconcile the conflicting results concerning the direction of the relationship between macroeconomic uncertainty and entrepreneurial activities. Specifically, we argue that the effect of macroeconomic uncertainty on entrepreneurial activities varies across the cultural trait of uncertainty avoidance. In countries where the prevailing culture is overwhelmingly characterized by low uncertainty avoidance, macroeconomic uncertainty is positively associated with entrepreneurial activities. By contrast, in countries where the prevailing culture is overwhelmingly characterized by high uncertainty avoidance, macroeconomic uncertainty is negatively related to entrepreneurial activities. Using data on 36 countries over the 2006–2016 period and employing the negative binomial regression technique, we find empirical support for our hypotheses. A series of robustness tests confirm the reliability of our empirical results.
Journal: Applied Economics
Pages: 5639-5652
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770192
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770192
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Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5639-5652
Template-Type: ReDIF-Article 1.0
Author-Name: Suyun Chen
Author-X-Name-First: Suyun
Author-X-Name-Last: Chen
Author-Name: Yiping Wu
Author-X-Name-First: Yiping
Author-X-Name-Last: Wu
Author-Name: Xinyi Shi
Author-X-Name-First: Xinyi
Author-X-Name-Last: Shi
Author-Name: Hengyun Ma
Author-X-Name-First: Hengyun
Author-X-Name-Last: Ma
Author-Name: Ruifeng Liu
Author-X-Name-First: Ruifeng
Author-X-Name-Last: Liu
Title: Why do many a-share listed companies eagerly disclose food safety information in China?—from the perspective of financing constraints
Abstract:
Recently, many listed food companies have started to eagerly disclose their food safety information; the question is, why? This study empirically tests the impacts of food safety information disclosure (FSID) on corporate financing constraints using a panel dataset. The results show that FSID is negatively correlated with equity financing constraint, while its degree is negatively correlated with debt financing constraint. FSID has a larger influence on the financing constraints of state-owned enterprises. Therefore, the standardized FSID is conducive to establishing a mechanism connecting an enterprise with government supervision, and to forming a bottom-up information transmission path in food safety production.
Journal: Applied Economics
Pages: 5653-5666
Issue: 51
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770193
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770193
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Handle: RePEc:taf:applec:v:52:y:2020:i:51:p:5653-5666
Template-Type: ReDIF-Article 1.0
Author-Name: Geng Peng
Author-X-Name-First: Geng
Author-X-Name-Last: Peng
Author-Name: Xiaodan Zhang
Author-X-Name-First: Xiaodan
Author-X-Name-Last: Zhang
Author-Name: Fang Liu
Author-X-Name-First: Fang
Author-X-Name-Last: Liu
Author-Name: Wenyi Lu
Author-X-Name-First: Wenyi
Author-X-Name-Last: Lu
Author-Name: Yongxing Wang
Author-X-Name-First: Yongxing
Author-X-Name-Last: Wang
Author-Name: Qiang Yin
Author-X-Name-First: Qiang
Author-X-Name-Last: Yin
Title: On the relationship between financial literacy and choice behaviours under different risk elicitation methods in surveys
Abstract:
A few pieces of literature based primarily on experiments have proved that the risk elicitation instrument can affect the measurement of subject’s risk preferences. Using the China Household Finance Survey data, we focus on the risk choice behaviours of respondents when they choose between two different elicitation methods that have different complexities and a different number of options, respectively. Specifically, one is simpler but with more options, and another is more complex but with fewer options. Moreover, we further discuss the impact of two methods on the relationship between financial literacy and risk attitude. The theoretical and empirical studies indicate that the respondents will be more risk-loving in the elicitation method with simpler and more options because of computation avoiding and noisy behaviours. Also, this paper finds that financial literacy has a positive relation with risk preferences, and low-literacy respondents have more irrational drift behaviours of risk choice. Our results suggest that it is vital to tradeoff the complexity and number of options for risk elicitation methods in surveys.
Journal: Applied Economics
Pages: 6090-6099
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784385
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784385
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Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6090-6099
Template-Type: ReDIF-Article 1.0
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Author-Name: Xiaoyi Hu
Author-X-Name-First: Xiaoyi
Author-X-Name-Last: Hu
Title: Order imbalance beta and stock returns
Abstract:
This paper studies the impact of order imbalance beta on cross-sectional stock returns in the Chinese stock market. We measure the daily order imbalance beta, which is defined as the sensitivity of stock returns to changes in stock order imbalance, and show at the individual stock level that stocks with higher order imbalance betas contemporaneously have higher average returns. Furthermore, we find that higher order imbalance beta stocks tend to be smaller, and have lower trading volumes, lower prices and lower turnover rates. Moreover, we find that the long-horizon (1-, 3-, 6- and 12-month) effect of order imbalance beta on stock returns is consistent with the previous daily effect. Finally, we prove that the positive relationship between order imbalance beta and stock returns is robust in different stock markets in China and when using different minimum day limits (30, 45 and 60 days) to estimate order imbalance beta.
Journal: Applied Economics
Pages: 6100-6113
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784386
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784386
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Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6100-6113
Template-Type: ReDIF-Article 1.0
Author-Name: Yanan Chen
Author-X-Name-First: Yanan
Author-X-Name-Last: Chen
Author-Name: Kyle A. Kelly
Author-X-Name-First: Kyle A.
Author-X-Name-Last: Kelly
Title: Rate of return to schooling and business cycles
Abstract:
This paper examines the effects of the economic conditions – unemployment rate and unemployment change – on the rate of returns to schooling, as well as the effects on the gender difference in the returns to schooling during business cycles. Data from American Community Survey 2000–2017 shows that economic conditions have significant effects on the rate of return to schooling for both men and women, and the gender difference exists. Unemployment has positive effects on the rate of return to schooling for both men and women. The returns to schooling are expected to increase in recessions and decrease in expansions for both men and women. In addition, the effects are greater for men than for women. The female-male difference in the rate of return to schooling is expected to be smaller as unemployment rate goes up and greater as unemployment rate goes down. We also find men’s returns to schooling are more sensitively responded to the economic conditions change than women’s.
Journal: Applied Economics
Pages: 6114-6122
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784387
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784387
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Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6114-6122
Template-Type: ReDIF-Article 1.0
Author-Name: Florian Kiesel
Author-X-Name-First: Florian
Author-X-Name-Last: Kiesel
Author-Name: Florian Manz
Author-X-Name-First: Florian
Author-X-Name-Last: Manz
Author-Name: Dirk Schiereck
Author-X-Name-First: Dirk
Author-X-Name-Last: Schiereck
Title: The conditional stock market response to banks’ distressed asset sales on CDS availability
Abstract:
This paper analyzes the stock market feedback on bank announcements of non-performing loan (NPL) sales, conditional on whether credit default swaps (CDS) are traded on the vendor bank’s debt or not. Using a sample of 259 NPL sale announcements from 2012–2018, we find that NPL sales are related to positive abnormal stock returns if there is no CDS trading on the vendor bank’s debt. In contrast, if a CDS on the bank’s debt is outstanding, we find a negative stock market reaction. Similarly, we provide evidence that the positive market reaction is muted for banks that are considered too-big-to-fail. While the regulator currently strengthens NPL sales, our results provide evidence that CDS trading reassigns banks’ risk exposure.
Journal: Applied Economics
Pages: 6123-6135
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784388
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784388
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Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6123-6135
Template-Type: ReDIF-Article 1.0
Author-Name: Tânia Gonçalves
Author-X-Name-First: Tânia
Author-X-Name-Last: Gonçalves
Author-Name: Lina Lourenço-Gomes
Author-X-Name-First: Lina
Author-X-Name-Last: Lourenço-Gomes
Author-Name: Lígia Pinto
Author-X-Name-First: Lígia
Author-X-Name-Last: Pinto
Title: Modelling consumer preferences heterogeneity in emerging wine markets: a latent class analysis
Abstract:
The purpose of this study is to explore the Russian and Chinese emerging markets for imported wines, by assessing Beijing and Moscow consumer demand for different attributes. This study employs the Discrete Choice Experiments technique to evaluate consumer preferences and willingness-to-pay for the selected wine attributes (medals, alcohol level, landscape certification, country of origin, grape variety and price). Results from Latent Class models provide evidence of preference heterogeneity and suggest the existence of two distinct consumer segments in China, and three segments in Russia. In both samples, the wine medals and country of origin are the top selected characteristics. Conspicuous consumption tendencies were found in some segments, with price having a positive impact on utility, probably signalling quality.
Journal: Applied Economics
Pages: 6136-6144
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784389
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784389
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Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6136-6144
Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Thi Thu Ha Nguyen
Author-X-Name-First: Thi Thu Ha
Author-X-Name-Last: Nguyen
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Iqbal Syed
Author-X-Name-First: Iqbal
Author-X-Name-Last: Syed
Title: Consumption smoothing and housing capital gains: evidence from Australia, Canada, and New Zealand
Abstract:
Using regional level panel data of three developed countries, comprising Australia, Canada, and New Zealand, the study investigates the response of consumption smoothing to housing capital gains. The consumption smoothing model first revisits the theory of perfect risk sharing. After rejecting a full consumption smoothing hypothesis, the results strongly indicate that the appreciation of house values smooths consumption further. For the sake of comparison, analysing three developed economies reveals the diversification in the response of consumption to long-run output shocks. Canadian residents appear to be more sensitive to permanent domestic output shocks while Australian’s consumption pattern remains unchanged.
Journal: Applied Economics
Pages: 6145-6161
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784390
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784390
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Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6145-6161
Template-Type: ReDIF-Article 1.0
Author-Name: Heng-Yu Chang
Author-X-Name-First: Heng-Yu
Author-X-Name-Last: Chang
Author-Name: Wu-Yueh Hu
Author-X-Name-First: Wu-Yueh
Author-X-Name-Last: Hu
Author-Name: Hui-Hsuan Liu
Author-X-Name-First: Hui-Hsuan
Author-X-Name-Last: Liu
Author-Name: Huei-Cheng Sue
Author-X-Name-First: Huei-Cheng
Author-X-Name-Last: Sue
Title: Does women on board affect the socially responsible firms’ effectiveness of internal control?
Abstract:
This study examines the relationship between corporate social responsibility (CSR) and the auditor’s commitment to internal control which strengthens the internal control system and reduces fraud. We further investigate the moderating role of gender diversity to validate the effectiveness of internal control in socially responsible firms. The logit model is employed based on 15,511 firm-year observations during 2004–2013. The findings suggest that the internal control effectiveness is positively associated with corporate conducts in social responsibility, and gender diversity strengthens the relationship between CSR and internal control effectiveness, validating that women on board indeed increases corporate transparency and board accountability.
Journal: Applied Economics
Pages: 6162-6170
Issue: 56
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1784836
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784836
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Handle: RePEc:taf:applec:v:52:y:2020:i:56:p:6162-6170
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Robert Mudida
Author-X-Name-First: Robert
Author-X-Name-Last: Mudida
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Title: Are central bank policy rates in Africa cointegrated? Evidence from a fractional cointegration approach
Abstract:
We analyse bilateral linkages between Central Bank Policy Rates in Africa and the US, the UK, Japan, Canada, China and the Eurozone using fractional integration and cointegration. Univariate analysis documents evidence of higher than 1 integration for the African countries. For the developed countries, the orders of integration are also above 1 in all markets except for Japan. On bivariate relationships among the countries, we find evidence of cointegration in a number of cases. The article reinforces the view that it will be difficult for many African countries to pursue independent monetary policies that do not consider global policy rate developments.
Journal: Applied Economics
Pages: 6171-6182
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1785619
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1785619
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Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6171-6182
Template-Type: ReDIF-Article 1.0
Author-Name: Mingming Pan
Author-X-Name-First: Mingming
Author-X-Name-Last: Pan
Author-Name: Brian Chi-ang Lin
Author-X-Name-First: Brian Chi-ang
Author-X-Name-Last: Lin
Title: An econometric analysis of Hispanic migration in the United States
Abstract:
This paper investigates the spatial redistribution pattern of Hispanics driven by internal migration tendencies in the United States, using American Community Survey (ACS) Public Use Microdata Sample (PUMS) data. We formulate three econometric models to study the internal migratory behaviour of Hispanics. More importantly, to uncover potential congestion and spillover effects, we introduce a novel variable into migration research, namely, the Neighbouring Hispanic Community. Our findings indicate that domestic migration of Hispanics leads to agglomeration of Hispanics, with the strongest agglomeration occurring in the states bordering the most concentrated states. While the congestion effect tends to weaken the agglomeration in the most concentrated states, the Hispanic-sparse states do not tend to receive Hispanics. The underlying force of potential dispersion is congestion and spillover from the highly concentrated states to their nearby states. Incorporating personal attributes into the analysis has provided some support for the spatial assimilation theory.
Journal: Applied Economics
Pages: 6183-6198
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1786493
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1786493
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Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6183-6198
Template-Type: ReDIF-Article 1.0
Author-Name: Lafang Wang
Author-X-Name-First: Lafang
Author-X-Name-Last: Wang
Author-Name: Bin Zhang
Author-X-Name-First: Bin
Author-X-Name-Last: Zhang
Author-Name: Rui Xie
Author-X-Name-First: Rui
Author-X-Name-Last: Xie
Author-Name: Bin Su
Author-X-Name-First: Bin
Author-X-Name-Last: Su
Title: The drivers of export value-added in China’s provinces: a multi-regional input–output model
Abstract:
It is vital to calculate Chinese provinces’ exports in domestic and global value chains from the perspective of value-added to address the problem of double counting. In this study, we calculated the direct and indirect domestic value-added in exports of 30 Chinese provinces using cross-border and cross-regional input–output tables in 2007 and 2012. We analysed the drivers of export value-added based on structural decomposition analysis. The results show that there is a value-added spatial imbalance in trade development. The export value-added of eastern provinces is significantly higher than that of central and western provinces, but this imbalance is gradually improving. The domestic value chain is the main channel for each province to realize export value-added, and the province production channels account for the highest proportion in this chain. The export value-added through international production channels is relatively small but growing in importance. The structural analysis shows that the increase of Chinese provinces’ export value-added is mainly caused by an increase of export scale and the provincial multiplier effect, while the value-added ratio of Chinese provinces has the main restraining effect. The spillover effect from industrial cooperation between provinces and other economies also increases the domestic value-added of exports.
Journal: Applied Economics
Pages: 6199-6214
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1787322
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1787322
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Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6199-6214
Template-Type: ReDIF-Article 1.0
Author-Name: Iacopo Odoardi
Author-X-Name-First: Iacopo
Author-X-Name-Last: Odoardi
Author-Name: Dario D’Ingiullo
Author-X-Name-First: Dario
Author-X-Name-Last: D’Ingiullo
Author-Name: Donatella Furia
Author-X-Name-First: Donatella
Author-X-Name-Last: Furia
Title: Human capital and the reduction of inequalities: an intra-national analysis in Italy
Abstract:
Human capital is a fundamental economic resource in the knowledge economy era, and improvements in education are usually associated with both economic development and the reduction of inequality. In Italy, these relationships are empirically controversial due to structural weaknesses (e.g., low improvements in labour productivity) and a poor capacity to leverage the returns from education. At the same time, the strong North-South dualism in the country suggests that there are inequalities in human capital endowment that may be exacerbated by the different responses of the regions to common problems. We test the effect of labour force human capital in Italy (observed through worker education level) on income inequality in the 2004–2016 period using regional data. The results suggest that the hypothesized mechanism works as expected in the more developed Centre-North, while structural difficulties hamper the reduction of inequality in the South, where, however, social capital plays a positive role in reducing the income inequalities.
Journal: Applied Economics
Pages: 6215-6228
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1788708
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1788708
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Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6215-6228
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoshi Zhou
Author-X-Name-First: Xiaoshi
Author-X-Name-Last: Zhou
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Alan Renwick
Author-X-Name-First: Alan
Author-X-Name-Last: Renwick
Author-Name: Gucheng Li
Author-X-Name-First: Gucheng
Author-X-Name-Last: Li
Title: Off-farm work decisions of farm couples and land transfer choices in rural China
Abstract:
Although previous studies have widely examined the association between off-farm work participation and land use behaviours of rural households, little attention has been paid to the effects of the joint off-farm work decisions of farm couples on land transfer choices. This study investigates the determinants of farm couples’ off-farm work participation, using a seemingly unrelated bivariate probit regression model and survey data collected from rural China. We also estimate the impact of the joint off-farm work decisions of farm couples on land transfer choices by employing a multinomial logit model and controlling for the endogeneity issues of off-farm work variables. The empirical results show that farm couples are jointly making decisions to work off the farm, but their decisions affect household land transfer choices differently. In particular, we show that the husbands participating in the off-farm work are more likely to rent in land, while their wives are less likely to do so. Both the husbands and wives are more likely to rent out land if they work off the farm. Our findings highlight the importance of farm couples’ off-farm work decisions in stimulating the development of rural land rental markets.
Journal: Applied Economics
Pages: 6229-6247
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1788709
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1788709
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Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6229-6247
Template-Type: ReDIF-Article 1.0
Author-Name: Mamit Deme
Author-X-Name-First: Mamit
Author-X-Name-Last: Deme
Author-Name: Ali M. A. Mahmoud
Author-X-Name-First: Ali M. A.
Author-X-Name-Last: Mahmoud
Title: Effect of quantity and quality of education on per capita real-GDP growth: evidence from low- and middle-income African countries
Abstract:
Although several empirical studies have investigated the growth impact of the quantity of schooling in African countries, research on the impact of schooling quality (the degree to which schooling nurtures professional and cognitive skills) is rare. To fill this research gap, this study examines the effects of the quantity and quality of education on per capita real-GDP growth in low-income and a combination of low- and middle-income African countries using dynamic generalized method of moment estimation on panel data from 2003 to 2016. The results suggest the quantities of primary and secondary education have a positive and statistically significant impact on per capita real-GDP growth; however, the correlation between the quality of education and economic growth is weak and not robust. Furthermore, standardized coefficients indicate the quantity of primary education has a stronger impact on growth than the quantity of secondary education and quality of education, and the quantity of secondary education has a stronger impact on growth than the quality of education. Overall, these results suggest policy authorities should target both the quantity and quality of education to achieve per capita real-GDP growth, with a particular focus on ensuring universal primary education.
Journal: Applied Economics
Pages: 6248-6264
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789058
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789058
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Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6248-6264
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Pinar Sener
Author-X-Name-First: Pinar
Author-X-Name-Last: Sener
Title: The convergence of ethical investment business models and their reliance on the conventional US investment market
Abstract:
This study investigates the extent of convergence of the two key types of ethical investment business models: Islamic Finance (IF) investment and Socially Responsible Investment (SRI) and the level to which these ethical business models are disconnected from the conventional investment market. We undertake an empirical assessment using three key US stock indexes: the Dow Jones Industrial Average, the Dow Jones Islamic Market, and the Dow Jones Sustainable Index. We find that IF and SRI indexes show significant similarities, suggesting that the ethical investment models share common moral and societal values and react similarly to market forces indicating convergence. We also find that the ethical investment models appear to be closely dependent on the conventional US stock market, suggesting inefficiency in the ethical investment model and, therefore, a dominant effect of conventional finance market on ethical investments. These findings are relevant as they allow us to better clarify the perceived convergence/divergence of values in IF and SRIs and to measure the degree of efficiency and credibility of ethical investment models to determine whether they are capable of successfully managing investments, in consideration of social, environmental, and economic factors, with fair, sustainable, and responsible outcomes.
Journal: Applied Economics
Pages: 6265-6276
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789059
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789059
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Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:6265-6276
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Applied Economics
Pages: i-i
Issue: 57
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1809179
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1809179
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Handle: RePEc:taf:applec:v:52:y:2020:i:57:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: Liangcheng Wang
Author-X-Name-First: Liangcheng
Author-X-Name-Last: Wang
Author-Name: Yining Dai
Author-X-Name-First: Yining
Author-X-Name-Last: Dai
Author-Name: Yifan Zhang
Author-X-Name-First: Yifan
Author-X-Name-Last: Zhang
Author-Name: Yuye Ding
Author-X-Name-First: Yuye
Author-X-Name-Last: Ding
Title: Auditor gender and stock price crash risk: evidence from China
Abstract:
Stock price crash risk is attributed to agency problems and information asymmetry. Auditors generally play a more important governance function in countries with weak legal institutions. Previous studies document that audit judgements and information processing differ by auditor gender, which ultimately impacts the quality of audited financial reporting and the governance role. This study examines the relationship between auditor gender and stock price crash risk, particularly whether female auditors may reduce stock price crash risk because of their risk aversion and ethics. Using a large sample in China with weak legal institutions, this study finds that female auditors play a governance role in curbing stock price crash risk, and the effect is dominant in the firms with high agency costs. Also, these findings are robust to a battery of tests. Finally, this study conducts two sets of cross-sectional analyses, indicating that the effect of auditor gender mostly concentrates on non-state-owned enterprises with high agency costs, and on firms with non-busy auditors that are deemed to have sufficient time to properly engage their audits. This study extends the literature on determinants of crash risk and has implications for firms, stakeholders and monitors over reducing crash risk to keep sustainable growth.
Journal: Applied Economics
Pages: 5995-6008
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1808576
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808576
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Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:5995-6008
Template-Type: ReDIF-Article 1.0
Author-Name: Rae Yule Kim
Author-X-Name-First: Rae Yule
Author-X-Name-Last: Kim
Title: An unforeseen story of alpha-woman: breadwinner women are more likely to quit the job in work-family conflicts
Abstract:
Extensive research studied the effect of work-family conflicts on employee turnover, however, limited studies explored how work-family conflicts might influence the turnover decision. This paper utilizes role congruity theory and predicts that the employee vulnerability to work-family conflicts might be enhanced when their perceived and actual parental roles are incongruent. This study examines the life history of 8,616 working parents in the U.S. National Longitudinal Surveys and finds that there is a gender difference in how employees respond to increasing family demands. Ironically, the results of this study indicate that growing family demands influence women to quit the job when they are the dominant financial provider to the family. Family demands did not have a significant effect on employee turnover for non-breadwinner women. Men are more likely to stay in the job as the family demand increases. The findings suggest that role-incongruity might be a substantial influence on how employees handle work-family conflicts. We also discus sthe policy implications from this study.
Journal: Applied Economics
Pages: 6009-6021
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781775
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781775
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Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6009-6021
Template-Type: ReDIF-Article 1.0
Author-Name: Burcu Kapar
Author-X-Name-First: Burcu
Author-X-Name-Last: Kapar
Author-Name: Steven Buigut
Author-X-Name-First: Steven
Author-X-Name-Last: Buigut
Title: Effect of Qatar diplomatic and economic isolation on Qatar stock market volatility: an event study approach
Abstract:
In this study we assess the impact of the political and economic blockade of Qatar, as well as four other events related to the blockade on Qatar’s stock market volatility. One of these events occurred before the June 5 2017 blockade while the others occurred after. We use volatility event-study approach to test the abnormal unsystematic volatility in stock returns. We reveal that stock market volatility has reacted significantly to the blockade as well as to other related events that happened before and after the blockade. Our findings highlight the importance of continuing, and even bolstering, the ongoing mediation efforts to reduce the risk of a resurgence of hostilities. As there is no resolution yet, there is still a risk of future market volatility and thus changes in portfolio allocation and investment decisions not only in Qatar but also in the GCC.
Journal: Applied Economics
Pages: 6022-6030
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781776
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781776
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Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6022-6030
Template-Type: ReDIF-Article 1.0
Author-Name: Asad Dossani
Author-X-Name-First: Asad
Author-X-Name-Last: Dossani
Author-Name: John Elder
Author-X-Name-First: John
Author-X-Name-Last: Elder
Title: Uncertainty and energy extraction
Abstract:
We examine the effects of uncertainty by investigating the effects of oil price uncertainty on employment in domestic oil and gas extraction. This industry is interesting to examine for two reasons. First, employment in this industry should be closely linked to oil prices, facilitating identification of more subtle economic relations related to uncertainty. For example, recent research finds that uncertainty about oil prices tends to diminish drilling activity in a small sample of drilling rigs in Texas. Second, the response of this industry to negative shocks to the supply of oil, for example, should be opposite that of aggregate employment. We characterize the univariate properties of the time series with a two-state Markov switching model, and we then estimate a vector autoregression with conditionally heteroskedastic errors, in which the conditional variance is permitted to interact with the conditional mean. We find that employment in oil and gas extraction cycles through episodes of boom and bust that are tightly linked to oil prices, in contrast to aggregate employment. We also find that uncertainty about oil prices has a negative and quantitatively large effect on employment in this sector. Our analysis is robust to different measures of uncertainty, including stochastic volatility and implied volatility.
Journal: Applied Economics
Pages: 6031-6044
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1782337
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1782337
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Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6031-6044
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Bassam M. AbuAl-Foul
Author-X-Name-First: Bassam M.
Author-X-Name-Last: AbuAl-Foul
Title: Oil prices and experts’ forecasts of seven exchange rates
Abstract:
Research indicates that survey-based forecasts of exchange rates fail to be rational. In addition, the literature points to oil prices as a key factor in determining/predicting exchange rates. We investigate these two research topics by focusing on Blue Chip multi-month forecasts of seven exchange rates for 1999–2015. Our investigation utilizes the recent forecast evaluation method that allows for the possibility of asymmetric loss. We show that Blue Chip forecasts, while free of systematic bias, cannot beat the random walk benchmark, and, at some forecast horizons, the errors fail to be orthogonal to changes in oil prices. We further show that, for four out of seven exchange rates, the change in oil prices explains the information content difference between the Blue Chip and random walk forecasts. Put together, our findings suggest that the inaccuracy of Blue Chip forecasts may be in part due to an inefficient use of oil price information available at the time of the forecast and, thus, forecasters should pay special attention to oil price movements when forecasting exchange rates.
Journal: Applied Economics
Pages: 6045-6056
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1782338
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1782338
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Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6045-6056
Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Luca Gambarelli
Author-X-Name-First: Luca
Author-X-Name-Last: Gambarelli
Author-Name: Silvia Muzzioli
Author-X-Name-First: Silvia
Author-X-Name-Last: Muzzioli
Title: The use of option prices to assess the skewness risk premium
Abstract:
The aims of this study are twofold. First, to determine the sign and magnitude of the skewness risk premium (SRP) in the Italian index option market using two procedures: (i) skewness swap contracts, (ii) option trading strategies consisting of positions in options and their underlying assets. Second, to investigate the term structure of the SRP for 30, 60 and 90-day maturities to provide investors with a proper time horizon for profitable skewness trading strategies. Several results are obtained. First, the SRP, defined as the difference between the physical and the risk-neutral skewness, is positive and statistically and economically significant. These findings indicate that the SRP does exist, it is positive in sign, and it can be quantified. Second, the SRP is higher in magnitude for short-term maturity (€35 for the 30-day maturity) and lower for 60-day and 90-day maturities (both about €27). Third, skewness trading strategies confirm our finding of a positive and economically significant SRP. Fourth, a strategy that sells out-of-the-money puts is more profitable for medium-term maturities compared to short-term maturities. A strategy that takes a long position on out-of-the-money calls, and a short position on out-of-the-money puts, yields a higher return, if near-term options are used.
Journal: Applied Economics
Pages: 6057-6074
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1783430
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1783430
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Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6057-6074
Template-Type: ReDIF-Article 1.0
Author-Name: Bülent Güloğlu
Author-X-Name-First: Bülent
Author-X-Name-Last: Güloğlu
Author-Name: Güzin Bayar
Author-X-Name-First: Güzin
Author-X-Name-Last: Bayar
Author-Name: Selman Tokpunar
Author-X-Name-First: Selman
Author-X-Name-Last: Tokpunar
Title: Effect of foreign trade on industrial employment: the case of Turkey
Abstract:
This study aims to define the main determinants of employment in Turkish manufacturing industry and to analyse foreign trade-employment relationship. Turkey’s employment equation is estimated using panel data covering quarterly data for the period 2005–2015 and NACE Rev. 2. three digit manufacturing industry sectors. For this purpose Augmented Mean Group method is modified using instrumental variable techniques. Augmented Mean Group (AMG) method is a newly developed panel estimation method that takes into consideration cross-sectional dependency and parameter heterogeneity. However, the method does not take into consideration endogeneities. We offer a new estimation method ‘Instrumental Variables Augmented Mean Group (IV-AMG)’ to extent AMG to account for endogeneities and compare the results obtained by the two estimators. Regression analyses show that, when there are endogeneities, AMG method gives implausible results.
Journal: Applied Economics
Pages: 6075-6089
Issue: 55
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1784384
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784384
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Handle: RePEc:taf:applec:v:52:y:2020:i:55:p:6075-6089
Template-Type: ReDIF-Article 1.0
Author-Name: Hao Wang
Author-X-Name-First: Hao
Author-X-Name-Last: Wang
Author-Name: Jan Fidrmuc
Author-X-Name-First: Jan
Author-X-Name-Last: Fidrmuc
Author-Name: Qi Luo
Author-X-Name-First: Qi
Author-X-Name-Last: Luo
Author-Name: Mingzhong Luo
Author-X-Name-First: Mingzhong
Author-X-Name-Last: Luo
Title: Exploring the determinants of on-farm transitions: Evidence from rural China
Abstract:
To shed light on the sustainable development of rural areas, we study the determinants of transitions from subsistence farming into either formal agricultural employment or agricultural entrepreneurship based on a recent nationally representative survey dataset. We pay particular attention to the roles of different capital endowments broadly including human, financial, natural, social and political capital. Our results show that human, natural, social and political capital are all important determinants of rural households’ transitions to on-farm employment and entrepreneurship while financial capital plays a limited role. These findings are robust to fully controlling for off-farm transitions as part of the household occupational strategy.
Journal: Applied Economics
Pages: 5667-5686
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770194
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770194
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Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5667-5686
Template-Type: ReDIF-Article 1.0
Author-Name: Xinjian Cui
Author-X-Name-First: Xinjian
Author-X-Name-Last: Cui
Author-Name: Xuhui Peng
Author-X-Name-First: Xuhui
Author-X-Name-Last: Peng
Author-Name: Jia Jia
Author-X-Name-First: Jia
Author-X-Name-Last: Jia
Author-Name: Dongxiao Wu
Author-X-Name-First: Dongxiao
Author-X-Name-Last: Wu
Title: Does board independence affect environmental disclosures by multinational corporations? Moderating effects of national culture
Abstract:
Over the past two decades, corporate social responsibility has become an important topic in business practice research. In this study, we investigate the relationship between board independence and environmental disclosures made by multinational corporations (MNCs) and the moderating effects of national culture on that relationship. We empirically test these objectives with a data set of 151 MNCs based in China, Japan, the UK, and the USA, using content analysis and a new method for measuring environmental disclosures of MNCs. Results indicate (1) a significantly positive relationship between board independence and environmental disclosures for MNCs and (2) that masculinity and uncertainty avoidance negatively moderate this relationship, demonstrating the important role of culture in corporate disclosures.
Journal: Applied Economics
Pages: 5687-5705
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770681
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770681
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Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5687-5705
Template-Type: ReDIF-Article 1.0
Author-Name: Dinghai Xu
Author-X-Name-First: Dinghai
Author-X-Name-Last: Xu
Title: Modelling asset returns under price limits with mixture of truncated Gaussian distribution
Abstract:
In this paper, we propose to use the mixture of truncated Gaussian distribution in modelling the financial asset return distribution under price limits. Theoretically, while retaining many convenient statistical properties of the Gaussian distribution, the proposed model assumes a flexible structure accommodating some important special features of the return data under price restrictions, such as the clusters near the bounds (due to the ‘bound effect’) and peaked shape around zero (due to the minimum-tick size effect). It can also allow for a wide range of variances and kurtosis even with a bounded domain. These are the salient features that the conventional models (such as the Normal, Truncated Normal and Censored Normal) do not have. For empirical illustration, we apply our proposed model to stocks under different price restrictions. Some common interesting features have been found. Furthermore, in our Value-at-Risk analysis, we find that ignoring the bound cluster in the tail of the distribution could lead to a significant overestimation of the number of violations and produce unreliable Value-at-Risk measures. In addition, we also find that the proposed model has a better empirical performance when the data are highly asymmetric and heavy-tailed.
Journal: Applied Economics
Pages: 5706-5725
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770682
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770682
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Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5706-5725
Template-Type: ReDIF-Article 1.0
Author-Name: Jordi Moreno-Gené
Author-X-Name-First: Jordi
Author-X-Name-Last: Moreno-Gené
Author-Name: Natalia Daries
Author-X-Name-First: Natalia
Author-X-Name-Last: Daries
Author-Name: Eduard Cristóbal-Fransi
Author-X-Name-First: Eduard
Author-X-Name-Last: Cristóbal-Fransi
Author-Name: Laura Sánchez-Pulido
Author-X-Name-First: Laura
Author-X-Name-Last: Sánchez-Pulido
Title: Snow tourism and economic sustainability: the financial situation of ski resorts in Spain
Abstract:
The aim of this article is to analyse the profitability of ski resorts in Spain and identify its associated determining factors in order to verify whether these are economically sustainable taking into account the internal and external aspects affecting them. To this end, the article first addresses the importance of snow tourism in Spain, before going on to analyse the influence that climate change is having on this type of tourism. A series of economic and structural ratios are then applied to the financial statements of ski resorts in Spain with the aim of establishing a base diagnosis for their situation. Finally, a regression model is estimated, the results of which reveal the more profitable ski resorts at the economic level to be those with the largest stations, a direct relationship being observed between profitability and size. The results also confirm the negative consequences of high indebtedness and the non-significant effects of using snowmaking systems.
Journal: Applied Economics
Pages: 5726-5744
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770683
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770683
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Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5726-5744
Template-Type: ReDIF-Article 1.0
Author-Name: Dongwoo Kim
Author-X-Name-First: Dongwoo
Author-X-Name-Last: Kim
Title: Investor churn analysis in a P2P lending market
Abstract:
This study aims to determine why investors leave a peer-to-peer (P2P) lending market, and the pathways through which several factors affect investor churn. To this end, this study performed Cox proportional hazard and Kaplan-Meier survival analyses, as well as a linear regression analysis of data from Moneyauction, Korea’s first, but recently failed, P2P platform. The results show that investors’ investment patterns (i.e., investment frequency, amount, and method) affect churn directly or indirectly via investment profitability. This result supplements the findings in the stock market that the higher the trading frequency and volume are, the lower the returns are in the P2P lending market. Furthermore, this study is the first to cover the issue of investor churn in P2P lending markets and to reveal the detailed pathways of investors’ investment patterns in both the P2P and traditional financial markets in terms of profitability and churn.
Journal: Applied Economics
Pages: 5745-5755
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1770684
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1770684
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Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5745-5755
Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Yan
Author-X-Name-First: Qiang
Author-X-Name-Last: Yan
Author-Name: Fangyu Ye
Author-X-Name-First: Fangyu
Author-X-Name-Last: Ye
Title: Financing equilibrium in a three-echelon supply chain: the impact of a limited bank loan
Abstract:
This paper studies a three-echelon supply chain consisting of a commercial bank, a supplier and a capital constrained retailer. The newsvendor-like retailer may not borrow up to what she needs from the bank due to low credit rating, and the remaining part may resort to the upstream supplier. Under the hybrid financing scheme under combination of bank credit and trade credit (BT), we characterize the optimal loan ratio for the commercial bank, the optimal wholesale price for the supplier and the optimal order quantity for the retailer, respectively. We investigate the impact of the bank loan ratio on the participants’ optimal decisions and profits. Comparing with the cases of no financing (NF) and bank credit financing only (BF), we determine financing preferences of the supplier and the retailer. Furthermore, we find that there exists a Pareto improvement region, where both the supplier and the retailer tend to accept BF or BT so that both participants can be better off in contrast to NF.
Journal: Applied Economics
Pages: 5756-5769
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1772457
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1772457
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Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5756-5769
Template-Type: ReDIF-Article 1.0
Author-Name: Claudiu Tiberiu Albulescu
Author-X-Name-First: Claudiu Tiberiu
Author-X-Name-Last: Albulescu
Author-Name: Cornel Oros
Author-X-Name-First: Cornel
Author-X-Name-Last: Oros
Title: Inflation, uncertainty, and labour market conditions in the US
Abstract:
Recent inflation dynamics in the United States (US) questioned the role of driving forces of inflation in the long run. Although the US recorded one of the longest economic recovery periods and the labour market conditions improved after the Global crisis from 2008 to 2009, the inflation level remained relatively low. Starting from this evidence, the purpose of our paper is to shed light to the influence of inflation uncertainty and labour market conditions on the US inflation level. To this end, we use two bounded measures of inflation uncertainty, and we compare a linear with an asymmetric Autoregressive Distributed Lag (ARDL) framework. We show that both inflation uncertainty and labour market conditions explain the long-run US inflation. However, these results are sensitive to the way the inflation uncertainty is computed. Moreover, contrary to the recent affirmations regarding the vanishing role of labour market in explaining the US inflation in the long run, we show that the labour market influence is stronger in the post-crisis, compared with the pre-crisis period. Therefore, the monetary policymakers cannot make abstraction of labour market developments in anticipating the US inflation level.
Journal: Applied Economics
Pages: 5770-5782
Issue: 52
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1772458
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1772458
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Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5770-5782
Template-Type: ReDIF-Article 1.0
Author-Name: Jingyi Wang
Author-X-Name-First: Jingyi
Author-X-Name-Last: Wang
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Hui Qiao
Author-X-Name-First: Hui
Author-X-Name-Last: Qiao
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: Impact assessment of agriculture, energy and water on CO2 emissions in China: untangling the differences between major and non-major grain-producing areas
Abstract:
Due to the use of abundant fossil and non-fossil fuels, the agricultural sector has contributed to large amounts of carbon dioxide (CO2) emissions in China. Meanwhile, the agricultural sector is the largest consumer of water in China. To investigate the effects of agricultural output, energy consumption and water use on CO2 emissions in China, a panel of 30 provinces for 2004–2017 is utilized. Also, to control the potential endogeneity, the orthogonal-difference Generalized Method of Moments (GMM) is used as the benchmark estimation method. Moreover, the Dumitrescu and Hurlin (D-H) panel causality test is employed to discover the causal relations among all the variables. Considering the differences in various agricultural areas in China, the 30 provinces are further divided into major and non-major grain-producing areas. The empirical results indicate that CO2 emission is responsive to economic growth, energy consumption, agricultural output and water use with positive elasticities in China. However, at the regional level, agricultural output only has significant impact on CO2 emissions in major grain-producing areas. Also, major and non-major grain-producing areas provide mixed directionality of causality among the variables. Finally, several policy implications are highlighted for the Chinese government with respect to mitigating CO2 emissions and promoting growth in the agricultural sector.
Journal: Applied Economics
Pages: 6482-6497
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1796920
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796920
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Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6482-6497
Template-Type: ReDIF-Article 1.0
Author-Name: Graziella Bonanno
Author-X-Name-First: Graziella
Author-X-Name-Last: Bonanno
Author-Name: Nadia Fiorino
Author-X-Name-First: Nadia
Author-X-Name-Last: Fiorino
Author-Name: Giampaolo Garzarelli
Author-X-Name-First: Giampaolo
Author-X-Name-Last: Garzarelli
Author-Name: Stefania Patrizia Sonia Rossi
Author-X-Name-First: Stefania Patrizia Sonia
Author-X-Name-Last: Rossi
Title: Public guarantee schemes, corruption and gender: a European SME-level analysis
Abstract:
Does a corrupt politico-institutional environment affect the demand of public subsidies for credit access – so-called public guarantee schemes – by small and medium-sized enterprises (SMEs) helmed by female entrepreneurs? The paper tackles this question by using a large sample of European SMEs over 2010–2014 while also carefully addressing possible endogeneity issues. It provides robust evidence that, compared to their male counterparts, female entrepreneurs: (a) tend to demand more public subsidies, and (b) are more sensitive to the quality of the politico-institutional environment. The upshot is that a corrupt environment is not gender neutral: in light of ‘essential gender features,’ corruption negatively influences SMEs helmed by female entrepreneurs more than male ones.
Journal: Applied Economics
Pages: 6498-6513
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1798342
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1798342
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Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6498-6513
Template-Type: ReDIF-Article 1.0
Author-Name: Marc A. Poitras
Author-X-Name-First: Marc A.
Author-X-Name-Last: Poitras
Author-Name: Daniel Sutter
Author-X-Name-First: Daniel
Author-X-Name-Last: Sutter
Title: Property rights and resource use: evidence from MLB starting pitchers
Abstract:
We conduct a unique test of the efficiency of property rights in major league baseball. The rights to the services of players are resources that can be possessed by the clubs or by the players themselves. This right was effectively reassigned from the club to the individual player when free agency was introduced in 1976. Players, however, only qualify for free agency after 6 years of service, and until that time a temporary property right is possessed by the club. In the absence of efficient bargaining, clubs that possess only a temporary right do not bear the full risk of injury or disability associated with using pitchers. Clubs in this situation can therefore have an incentive to overuse star pitchers. This theoretical prediction is supported by the statistical inferences of our econometric models.
Journal: Applied Economics
Pages: 6514-6524
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1803486
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803486
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Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6514-6524
Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Khazaei
Author-X-Name-First: Mehdi
Author-X-Name-Last: Khazaei
Author-Name: Mohammad Azizi
Author-X-Name-First: Mohammad
Author-X-Name-Last: Azizi
Title: How financial performance of world’s top companies are related to business environment?
Abstract:
Businesses need an environment in which business conditions in features such as starting a business, registering property, getting credit, paying taxes, trading across borders and enforcing contract be simple. Every year, the world bank publishes a report on the business environment of different countries around the world with the aim of improving doing business environmental conditions. The purpose of the present study is to investigate the relationship between the financial performance of world’s top companies and the business environment indicators. For this purpose, 176 top companies in the world from 2013 to 2018 that were profitable were selected as the statistical population. Doing business annual reports, and Fortune site were used to collect the data. Also the data analysis was done according to the panel data method using Eviews10 software. The results shows that there is a positive relationship between business environment Indicator and financial performance of world’s top companies. On the other hand, the per capita income of the countries in which the top companies belonged was considered as a control variable and the results show that the per capita income has a positive and significant relationship with the financial performance of the top companies in the world.
Journal: Applied Economics
Pages: 6525-6539
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1803487
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803487
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Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6525-6539
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian R. Fleissig
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Fleissig
Author-Name: James L. Swofford
Author-X-Name-First: James L.
Author-X-Name-Last: Swofford
Title: The demand for assets through a low-interest rate environment
Abstract:
Asset demand is important in many areas of economics. To investigate this, we estimate a globally flexible dynamic Fourier asset demand specification and calculate Morishima elasticities of substitution for six asset categories for the U.S. This specification produces negative own price (user cost) elasticities. The Morishima elasticities show that each of the six asset groups is substitutes. These results suggest that monetary policy efficacy increases in recessions and support the Barnett Critique that central banks should not ignore substitution effects and portfolio adjustments among financial assets and Friedman and Schwartz’s view that saving deposit assets should be included in money.
Journal: Applied Economics
Pages: 6540-6551
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1803489
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803489
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Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6540-6551
Template-Type: ReDIF-Article 1.0
Author-Name: Emre Kuvvet
Author-X-Name-First: Emre
Author-X-Name-Last: Kuvvet
Title: When a journalist is assassinated, do financial markets care? The market’s reaction to journalist murders
Abstract:
Using comprehensive data on journalist assassinations around the world, we study the effect of journalist killings on stock returns. Our event study results show an average price drop of −0.46% following the murder of a journalist for companies headquartered in the country where the killing occurs. We find that killing a journalist who is an editor, lives locally, or works in television causes the most negative market reaction. In addition, when journalists are killed by military officials or tortured first, the stock prices of firms headquartered in that country declines by 4.63% and 3.01%, respectively.
Journal: Applied Economics
Pages: 6552-6561
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1803490
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1803490
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Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6552-6561
Template-Type: ReDIF-Article 1.0
Author-Name: Kirti Saxena
Author-X-Name-First: Kirti
Author-X-Name-Last: Saxena
Author-Name: Madhumita Chakraborty
Author-X-Name-First: Madhumita
Author-X-Name-Last: Chakraborty
Title: Should we pay attention to investor attention in forex futures market?
Abstract:
We investigate whether forex futures dynamics is responsive to change in investor attention. The currencies used in the study are the AUD (Australian Dollar), CAD (Canadian Dollar), EUR (Euro), GBP (Great Britain Pound) and JPY (Japanese Yen), all in terms of USD. The Google Search Volume Index (SVI) serves as the investor attention proxy. Our results determine the multiplicate relationships of forex futures return and trading volume with SVI (investor attention). Lagged SVI impacts current forex futures return and trading volume. However, there is no nonlinear relationship between forex futures and SVI. Financial contagion among forex futures has also been analysed through the channel of investor attention (SVI). There seems to be hardly any evidence that attention to other currency markets gives rise to the contagion effect. The findings of the study are barely affected by the inclusion of control variables such as currency spot rate and fundamental variables of uncertainty, suggesting that investor attention has an influencing role in the forex futures market.
Journal: Applied Economics
Pages: 6562-6572
Issue: 60
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1804050
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1804050
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Handle: RePEc:taf:applec:v:52:y:2020:i:60:p:6562-6572
Template-Type: ReDIF-Article 1.0
Author-Name: Zhepeng Hu
Author-X-Name-First: Zhepeng
Author-X-Name-Last: Hu
Author-Name: Teresa Serra
Author-X-Name-First: Teresa
Author-X-Name-Last: Serra
Author-Name: Philip Garcia
Author-X-Name-First: Philip
Author-X-Name-Last: Garcia
Title: Algorithmic quoting, trading, and market quality in agricultural commodity futures markets
Abstract:
This paper investigates the effect of algorithmic trading activity, as measured by quoting, on the corn, soybean, and live cattle commodity futures market quality. Using the CME’s limit-order-book data and a heteroscedasticity-based identification approach, we find more intensive algorithmic quoting (AQ) is beneficial to multiple dimensions of market quality. AQ improves pricing efficiency and mitigates short-term volatility, but its effects on liquidity costs are somewhat mixed. Increased AQ significantly narrows effective spreads in the corn and soybean markets, but not in the less traded live cattle futures market. The narrowing in effective spreads emerges from a reduction in adverse selection costs as more informed traders lose their market advantage. There also is evidence that liquidity provider revenues increase with heightened AQ activity in the corn futures market, albeit the effect is not statistically significant in the soybean and live cattle futures markets. The increased revenue points to a tradeoff between the dimensions of market quality, and the need for continued assessment and monitoring of algorithmic trading activity.
Journal: Applied Economics
Pages: 6277-6291
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789060
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789060
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Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6277-6291
Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Title: The effectiveness of social distancing in containing Covid-19
Abstract:
A statistical measure of the containment of Covid-19 is proposed to describe seven possible outcomes ranging from the worst outcome of ‘beyond control’ and the best outcome of ‘under control with rapid progress towards zero infections’. This measure is used to examine the performance of 10 countries with emphasis on the role of government-imposed measures of social distancing (lockdown, etc.). The results show that social distancing is effective, even though it is difficult to separate the effect of government measures from that of social distancing triggered by personal initiatives. The experience of Sweden shows that social distancing as a personal initiative is inadequate for the purpose of containing the virus. The experience of Brazil shows that taking the virus lightly brings about serious consequences.
Journal: Applied Economics
Pages: 6292-6305
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789061
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789061
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Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6292-6305
Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Apergis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Apergis
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Weiwei Young
Author-X-Name-First: Weiwei
Author-X-Name-Last: Young
Title: Investigating the impact of auto loans on unemployment: the US experience
Abstract:
This paper explores the impact of automobile loan debt on US unemployment. Individuals with heterogeneous economic positions deem automobiles as important durable goods for unemployment exit and expected wage increases. The methodological approach makes use of an Autoregressive Distributed Lag (ARDL) Bound Testing modelling approach to document a negative and significant relationship between auto loans and unemployment. The results survive certain robustness tests, while they seem to confirm certain theoretical arguments posed in the literature, such as that the credit mechanism that dominates the transmission mechanism of monetary policy (credit shocks have a profound significant link with unemployment), while they seem to mitigate the role of alternative theories (where levered households suffer from a ‘debt overhang’ problem that distorts their preferences, making them demand high wages, and the ‘vacancy-posting’ effect) which imply that loans lead to high unemployment. The findings seem to provide significant recommendations to monetary policy makers on strengthening the banking services industry, providing an alternative to monetary policy for labour market intervention.
Journal: Applied Economics
Pages: 6306-6319
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789548
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789548
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Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6306-6319
Template-Type: ReDIF-Article 1.0
Author-Name: Jun Deng
Author-X-Name-First: Jun
Author-X-Name-Last: Deng
Author-Name: Huifeng Pan
Author-X-Name-First: Huifeng
Author-X-Name-Last: Pan
Author-Name: Shuyu Zhang
Author-X-Name-First: Shuyu
Author-X-Name-Last: Zhang
Author-Name: Bin Zou
Author-X-Name-First: Bin
Author-X-Name-Last: Zou
Title: Minimum-variance hedging of Bitcoin inverse futures
Abstract:
We formulate an optimal hedging problem of Bitcoin inverse futures under the minimum-variance framework. We obtain the optimal hedging strategy in closed forms for both short and long hedges and compute hedging effectiveness under the optimal strategy. Our empirical analyses show that the optimal hedging strategy achieves superior effectiveness in reducing risk and outperforms the naïve hedge in all scenarios.
Journal: Applied Economics
Pages: 6320-6337
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1789549
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1789549
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Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6320-6337
Template-Type: ReDIF-Article 1.0
Author-Name: Sanjeev Gupta
Author-X-Name-First: Sanjeev
Author-X-Name-Last: Gupta
Author-Name: Michela Schena
Author-X-Name-First: Michela
Author-X-Name-Last: Schena
Author-Name: Seyed Reza Yousefi
Author-X-Name-First: Seyed Reza
Author-X-Name-Last: Yousefi
Title: Revisiting IMF expenditure conditionality
Abstract:
We study the long-run relationship between expenditure conditionality in IMF programmes and the composition of public spending. We compile a granular dataset on government expenditure conditions in 115 countries during 1992–2016 and find that it is structural conditionality which delivers lasting benefits. Structural public financial management conditionality has proven effective in boosting long-term levels of education, health, and investment expenditures. We further find that non-structural conditionality (such as spending floors) for raising specific spending categories may come at the expense of other expenditures, such as health. Finally, successful implementation and not mere existence of the conditionality is crucial for improved outcomes.
Journal: Applied Economics
Pages: 6338-6359
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1790494
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1790494
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Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6338-6359
Template-Type: ReDIF-Article 1.0
Author-Name: Yiyang Luo
Author-X-Name-First: Yiyang
Author-X-Name-Last: Luo
Author-Name: Zheng Pan
Author-X-Name-First: Zheng
Author-X-Name-Last: Pan
Title: Peer effects on student weight: randomization evidence from China
Abstract:
This paper investigates peer effects on student weight. Taking advantage of a national survey of middle schools in China, we exploit the BMI variation in randomly assigned classrooms. We find that having heavier peer classmates significantly increases a student’s body weight. The results are consistent across various robustness checks based on a standardized measurement of BMI, alternative peer measures, a spurious correlation with height, and the validity of the instruments. Peer effects are more pronounced among female students, nonlocal students, rural students, and students with longer exposure to classmates. The quantile analysis suggests that the peer effect is stronger at the lower end of the BMI distribution. These findings confirm the presence of social multiplier effects in middle schools, which is helpful in establishing health policies for reducing student overweight.
Journal: Applied Economics
Pages: 6360-6371
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1791312
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1791312
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Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6360-6371
Template-Type: ReDIF-Article 1.0
Author-Name: Emma Galli
Author-X-Name-First: Emma
Author-X-Name-Last: Galli
Author-Name: Ilde Rizzo
Author-X-Name-First: Ilde
Author-X-Name-Last: Rizzo
Author-Name: Carla Scaglioni
Author-X-Name-First: Carla
Author-X-Name-Last: Scaglioni
Title: Is transparency spatially determined? An empirical test for Italian municipalities
Abstract:
In this article, we aim to assess whether transparency is characterized by a spatial dimension. To this end, we use a new composite indicator (CTI) for a large sample of Italian municipalities and control for several factors (socio-economic, fiscal, and politico-institutional), which, according to the literature, affect transparency. Our results suggest that there is a statistically significant transparency clustering across the Italian municipalities which follows a dichotomic pattern, i.e. either very low or very high. Moreover, the empirical analysis shows that spatial dependence matters and ‘transparency mimicking’ takes place among neighbouring municipalities. This behaviour mainly occurs among small municipalities where citizens’ political participation is likely to be greater and the single-ballot electoral system strengthens the incentives for government accountability.
Journal: Applied Economics
Pages: 6372-6385
Issue: 58
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795068
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795068
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Handle: RePEc:taf:applec:v:52:y:2020:i:58:p:6372-6385
Template-Type: ReDIF-Article 1.0
Author-Name: Chenlu Dang
Author-X-Name-First: Chenlu
Author-X-Name-Last: Dang
Author-Name: Bingquan Wang
Author-X-Name-First: Bingquan
Author-X-Name-Last: Wang
Author-Name: Weiya Hao
Author-X-Name-First: Weiya
Author-X-Name-Last: Hao
Title: An optimal banking structure from the perspective of enterprise technological innovation ------- empirical evidence from Chinese industrial enterprises
Abstract:
This paper applies the incomplete contracts model to study an optimal banking structure corresponding to different levels of technological development from the perspective of technological innovation. The findings indicate that, with the development of technology, there exists an optimal banking structure that matches the real economy and has a dynamic evolution in different stages of economic development. At the same time, an optimal banking structure depends on the level of technological development, which seems to render invalid the argument that one structure is absolutely better than the other. Finally, the paper empirically analyzes the impact of banking structure on technological innovation using the data of China’s industrial enterprises from 2005 to 2009 . The empirical results show firstly that, with economic development and technological progress, an optimal banking structure that promotes technological innovation is biased towards a monopoly structure. Secondly, from the perspective of the sub-regional level of technological progress, a competitive banking structure is more conductive to technological innovation in low-tech areas but, in medium- and high-tech areas, a monopolistic banking structure will further promote technological innovation.
Journal: Applied Economics
Pages: 6386-6399
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795069
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795069
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Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6386-6399
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dixon
Author-X-Name-First: Robert
Author-X-Name-Last: Dixon
Author-Name: G. C. Lim
Author-X-Name-First: G. C.
Author-X-Name-Last: Lim
Title: Is the decline in labour’s share in the US driven by changes in technology and/or market power? An empirical analysis
Abstract:
In this paper, we provide a perspective on the explanations suggested for the decline in labour’s share in the Nonfinancial Corporations sector of US economy since 1947. The literature identifies two broad groups of explanations for marked variations in the labour share – drivers associated with production technology (e.g. increasing automation or factor augmentation) and drivers that reflect non-technology factors (e.g. increasing market power). We provide a theoretical and empirical framework to understand and estimate the contribution of technology and/or non-technology factors. The key findings are that there was a ‘decoupling’ of wage growth and productivity growth in the US Nonfinancial Corporations sector in the early 2000s, and that there is not a single explanation for the decline in labour’s share in that sector over the period 2001–2013. Changes in production technology and in market power have both contributed to the decline.
Journal: Applied Economics
Pages: 6400-6415
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795072
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795072
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Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6400-6415
Template-Type: ReDIF-Article 1.0
Author-Name: Óscar Afonso
Author-X-Name-First: Óscar
Author-X-Name-Last: Afonso
Author-Name: Pedro G. Lima
Author-X-Name-First: Pedro G.
Author-X-Name-Last: Lima
Title: A non-scale-directed technical change model with endogenous labor share
Abstract:
We extend a directed technical change (DTC) model without scale effects that allows labour share to vary over time. By decomposing the labour share by sectors, skilled and unskilled, and, in line with the empirical evidence, by considering a lower value in the skilled sector, we show that: (i) both the technological-knowledge bias per worker, the skill premium and the relative importance of the skilled sector continue to increase over time until the steady state, as in the baseline model; (ii) the labour share falls over time due to a combination of an increased importance and a lower labour share in the skilled sector; (iii) by considering endogenous labour supply, a relative increase in skilled labour also decreases the labour share during the transitional dynamics.
Journal: Applied Economics
Pages: 6416-6431
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795073
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795073
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Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6416-6431
Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Koenings
Author-X-Name-First: Fabian
Author-X-Name-Last: Koenings
Author-Name: Giovanni Di Meo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Di Meo
Author-Name: Silke Uebelmesser
Author-X-Name-First: Silke
Author-X-Name-Last: Uebelmesser
Title: University rankings as information source: do they play a different role for domestic and international students?
Abstract:
So far, the effect of rankings on university choice has mostly been explored for Anglo-Saxon countries with a focus on domestic students. Using data from a medium-sized German university, we study the importance of rankings for domestic and international students. Results from an exploratory factor analysis suggest that the university position in rankings is highly relevant for both groups. Differences show up when comparing rankings and other sources of information: domestic students complement advice from classmates and alumni with rankings, while international students do this – if at all – for advice from family and friends. Interestingly, advice from authorities like teachers is substituted for rankings by international students.
Journal: Applied Economics
Pages: 6432-6447
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1795075
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795075
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Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6432-6447
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim
Author-X-Name-Last: Idi Cheffou
Title: Does investor attention to Islamic finance create spillover?
Abstract:
This paper examines whether investor attention to Islamic finance creates spillover or not. The answer to this question is relevant to understanding whether the recent growth in Islamic Finance is due to an increase in fundamentals or is more to do with a market attention shock. We examine this question for three developed countries (France, the United Kingdom (the UK) and the United States of America (the USA)), four emerging countries (Saudi Arabia (SA)), the United Arab Emirates (the UAE), Pakistan and India), and the whole world. Our findings show that while the US and the UK lead investor attention to Islamic finance and spillover across the globe, India and Pakistan have experienced the greatest spillover from investor attention for both emerging and developed countries. Saudi Arabia and the UAE, on the other hand, play a somewhat minor role.
Journal: Applied Economics
Pages: 6448-6452
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1796912
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796912
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Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6448-6452
Template-Type: ReDIF-Article 1.0
Author-Name: Linyue Li
Author-X-Name-First: Linyue
Author-X-Name-Last: Li
Author-Name: Dongzhou Mei
Author-X-Name-First: Dongzhou
Author-X-Name-Last: Mei
Author-Name: Rou Li
Author-X-Name-First: Rou
Author-X-Name-Last: Li
Title: The impact of RMB swap agreements on foreign exchange reserve demand
Abstract:
This paper constructs panel data of 150 economies from 2001 to 2017 to study the impact of RMB (Renminbi) swap agreements on foreign exchange reserve demand. The empirical results show that the swap agreements can significantly reduce the foreign reserve demand of non-OECD economies that have relatively insufficient liquidity. From the perspective of specific country classification, economies neighbouring China have higher RMB demand, Latin American and African economies hold less reserve, and commodity exporters are stuck in liquidity-nervous situations, in which RMB swap agreements are able to improve liquidity so that their reserve demand decreases. Regarding the channels of influence, swap agreements impose different impacts on the reserve demand mainly through bilateral trade and more impacts on economies that import more from China. On the contrary, the RMB swap agreements will not affect the OECD economies’ foreign exchange reserve demand.
Journal: Applied Economics
Pages: 6453-6467
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1796916
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796916
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Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6453-6467
Template-Type: ReDIF-Article 1.0
Author-Name: Harsha Paranavithana
Author-X-Name-First: Harsha
Author-X-Name-Last: Paranavithana
Author-Name: Leandro Magnusson
Author-X-Name-First: Leandro
Author-X-Name-Last: Magnusson
Author-Name: Rod Tyers
Author-X-Name-First: Rod
Author-X-Name-Last: Tyers
Title: Transitions to inflation targeting: panel evidence
Abstract:
From panel estimates of an extended version of the Taylor-rule reaction function that adds lagged inflation, output gaps and exchange rates, we confirm that inflation is more central to the setting of policy interest rate when emerging market economies’ (EMEs) central banks follow inflation targeting (IT), while the exchange rate carries more weight for non-IT EMEs. Moreover, lagged output gaps are also play important roles in setting policy interest rates in IT EMEs. Employing a volatility measurement approach, our analysis also confirms that IT does moderate the volatility of inflation and exacerbate that of nominal exchange rates. Yet IT appears less effective in controlling the volatility of real variables, including output volumes.
Journal: Applied Economics
Pages: 6468-6481
Issue: 59
Volume: 52
Year: 2020
Month: 12
X-DOI: 10.1080/00036846.2020.1796919
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796919
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Handle: RePEc:taf:applec:v:52:y:2020:i:59:p:6468-6481
Template-Type: ReDIF-Article 1.0
Author-Name: Yupeng Li
Author-X-Name-First: Yupeng
Author-X-Name-Last: Li
Author-Name: John A. Rizzo
Author-X-Name-First: John A.
Author-X-Name-Last: Rizzo
Title: Timing and payoff of patent purchases: the role of firm size and composition
Abstract:
While large pharmaceutical companies continue to dominate drug development and patent acquisition, their timing of drug patent acquisition and subsequent payoffs remain poorly understood. We analysed the effects of firm characteristics on the timing of patent purchases, with a unique data set constructed using publicly available data provided by the United States Patent and Trademark Office (USPTO). We focused on the role of firm size and composition in affecting the timing of patent purchases and the subsequent payoff; particularly, how firms’ R&D intensity and overall scale affect purchasing decisions and commercial success of the drugs. The quantitative results show that, on average, firms with larger scale and stronger R&D departments are more likely to purchase drug patents later; furthermore, a strong R&D department contributes positively to drug sales and market shares through a better selection process of patents. The economics intuition is that firms with a larger scale and greater emphasis on R&D investment have advantages in producing in-house innovation, so they tend to be more selective when buying from outsources. This results in buying patents later and better subsequent commercial performance on the drugs that firms purchased.
Journal: Applied Economics
Pages: 5894-5908
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1778159
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1778159
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Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5894-5908
Template-Type: ReDIF-Article 1.0
Author-Name: Hyun-Bock Lee
Author-X-Name-First: Hyun-Bock
Author-X-Name-Last: Lee
Author-Name: Cheol-Ho Park
Author-X-Name-First: Cheol-Ho
Author-X-Name-Last: Park
Title: Spillover effects in the global copper futures markets: asymmetric multivariate GARCH approaches
Abstract:
This study investigates changes in return and volatility spillovers between the LME/COMEX and the SHFE copper futures markets before and after the global financial crisis and after the introduction of the night trading session (NTS) to the SHFE using asymmetric multivariate GARCH models. The results show that the SHFE has not been stronger to the LME/COMEX in information spillover effects, even though it has grown substantially in terms of trading volume after the crisis. Furthermore, the SHFE does not seem to have a significant influence on international copper futures prices although the Chinese government allowed the NTS to the SHFE.
Journal: Applied Economics
Pages: 5909-5920
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781769
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781769
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Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5909-5920
Template-Type: ReDIF-Article 1.0
Author-Name: Dusanee Kesavayuth
Author-X-Name-First: Dusanee
Author-X-Name-Last: Kesavayuth
Author-Name: Robert E. Rosenman
Author-X-Name-First: Robert E.
Author-X-Name-Last: Rosenman
Author-Name: Vasileios Zikos
Author-X-Name-First: Vasileios
Author-X-Name-Last: Zikos
Title: The dynamic effects of retirement on well-being
Abstract:
In this paper we examine whether and to what extent people anticipate their retirement and adapt to it over time. For identification we use an instrumental variable approach that exploits the eligibility ages for state pension as a source of exogenous variation in retirement status. We show that retirement increases satisfaction with the amount of leisure time up to two years prior to retiring. Upon retirement, individuals reported higher satisfaction with their income and leisure. For leisure the well-being boost did not dissipate over time, but for income satisfaction adaptation was complete. These findings provide new empirical evidence on the causal link between retirement and well-being and suggest that such link may be better understood as a three-stage process occurring before, during and after retirement.
Journal: Applied Economics
Pages: 5921-5935
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781770
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781770
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Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5921-5935
Template-Type: ReDIF-Article 1.0
Author-Name: Wunhong Su
Author-X-Name-First: Wunhong
Author-X-Name-Last: Su
Author-Name: Xiaobao Song
Author-X-Name-First: Xiaobao
Author-X-Name-Last: Song
Author-Name: Chun Guo
Author-X-Name-First: Chun
Author-X-Name-Last: Guo
Title: Research and development investment and operational performance of listed small and medium-sized enterprises in China
Abstract:
This study aims to investigate the impact of research and development (R&D) investment on the operational performance of small and medium-sized enterprises (SMEs) from 2013 to 2017. The findings show that there is a significant negative relation between R&D investment and the operational performance of SMEs in China. This negative effect lasts for three years subsequent to R&D investment. In addition, there is no positive relation between R&D investment and the operational performance of SMEs. The relation between R&D investment and operational performance appears significantly negative for non-state-owned enterprises (non-SOEs) and SMEs with an R&D investment intensity of more than 5%. However, it is non-significant for state-owned SMEs (SOEs) and SMEs with an R&D investment intensity of less than 5%. The two-stage method of the Heckman test and propensity score matching (PSM) are employed in this study to exclude problems of endogeneity, and the results remain robust.
Journal: Applied Economics
Pages: 5936-5948
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781771
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781771
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Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5936-5948
Template-Type: ReDIF-Article 1.0
Author-Name: Maria E. de Boyrie
Author-X-Name-First: Maria E.
Author-X-Name-Last: de Boyrie
Author-Name: Ivelina Pavlova
Author-X-Name-First: Ivelina
Author-X-Name-Last: Pavlova
Title: Analysing the link between environmental performance and sovereign credit risk
Abstract:
This study investigates the effects of a country’s environmental performance on sovereign credit risk. We use sovereign credit default swap (CDS) spreads for a large panel of countries to analyse whether the relationship between environmental performance and credit risk varies by the maturity of the credit instrument and by the level of fiscal performance. Using a dynamic panel generalized method of moments model, we document a negative association between environmental performance and credit risk. This relationship does not exhibit substantial variation by CDS maturity.
Journal: Applied Economics
Pages: 5949-5966
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781772
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781772
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Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5949-5966
Template-Type: ReDIF-Article 1.0
Author-Name: Petr Janský
Author-X-Name-First: Petr
Author-X-Name-Last: Janský
Title: European banks and tax havens: evidence from country-by-country reporting
Abstract:
Banks in the European Union have recently started publicly reporting data on profit, employee numbers, turnover and tax on a country-by-country basis; this new data source is capable of indicating to what extent banks’ profits are geographically aligned with their activities. I introduce one of the largest, hand-collected, publicly available data sets of its kind, which covers almost 50 banks for up to 5 years between 2013 and 2017. Using the data set, I identify the main locations of European bank’s profits, which include major European economies as well as countries often considered tax havens. I find that some of the tax havens have maintained high shares of profits in contrast with their much lower shares of employees or, to a lesser extent, turnover. These results indicate that while banks are likely shifting their profits to tax havens, even more detailed data would need to be published by banks to facilitate a direct observation of profit shifting.
Journal: Applied Economics
Pages: 5967-5985
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781773
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781773
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Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5967-5985
Template-Type: ReDIF-Article 1.0
Author-Name: Young Han Bae
Author-X-Name-First: Young Han
Author-X-Name-Last: Bae
Author-Name: Thomas S. Gruca
Author-X-Name-First: Thomas S.
Author-X-Name-Last: Gruca
Author-Name: Hyunwoo Lim
Author-X-Name-First: Hyunwoo
Author-X-Name-Last: Lim
Author-Name: Gary J. Russell
Author-X-Name-First: Gary J.
Author-X-Name-Last: Russell
Title: The size-rank relationship for market shares of consumer packaged goods
Abstract:
This study examines the relationship between market share and its rank for a comprehensive set of product categories and subcategories in the U.S consumer packaged goods industry. Based on prior research, we expect that the slope of the market share-rank relationship will be more consistent with the Zipf distribution at the higher levels of aggregation (category-level versus subcategory-level shares). Two alternative model formulations were examined: the size-rank power law and an exponential alternative used in prior research. Model parameters were estimated across categories (and subcategories) using random coefficients for both the slopes and intercepts. The overall slopes for both samples were significantly higher than −1, the slope consistent with the Zipf distribution. However, as expected, we also found that the slope associated with data from the higher level of aggregation (category level) is flatter than that from the lower level of aggregation (subcategory level). We discuss implications of these results for future research on the size-rank relationship.
Journal: Applied Economics
Pages: 5986-5994
Issue: 54
Volume: 52
Year: 2020
Month: 11
X-DOI: 10.1080/00036846.2020.1781774
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1781774
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Handle: RePEc:taf:applec:v:52:y:2020:i:54:p:5986-5994
Template-Type: ReDIF-Article 1.0
Author-Name: Yuta Ogane
Author-X-Name-First: Yuta
Author-X-Name-Last: Ogane
Title: Who is a good advisor for entrepreneurs?
Abstract:
This paper examines the effects of external advice on entrepreneurs’ fundraising and business performance while distinguishing the sources of advice, by using a survey in Japan that includes 3,011 new firms. We find that advice from managers in the same industries contributes to solving entrepreneurs’ fundraising problems not only before startup but also immediately after startup. Their advice also helps increase the amount of external funding which entrepreneurs obtain at the time of startup. We also find that advice from accountants contributes to enhancing new firms’ performance immediately after startup. Their advice also contributes to enhancing their performance after the screening of projects, suggesting that such advice also serves as value-added in terms of the enhancement of new firms’ business performance.
Journal: Applied Economics
Pages: 1-34
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1745746
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1745746
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuna Heo
Author-X-Name-First: Yuna
Author-X-Name-Last: Heo
Author-Name: Fangfang Hou
Author-X-Name-First: Fangfang
Author-X-Name-Last: Hou
Author-Name: Seongkyu Gilbert Park
Author-X-Name-First: Seongkyu Gilbert
Author-X-Name-Last: Park
Title: Does corruption grease or sand the wheels of investment or innovation? Different effects in advanced and emerging economies
Abstract:
We assess different effects of corruption on corporate activities depending on whether a firm operates in an advanced or emerging economy. In emerging economies, greater corruption is related to greater capital expenditures. In advanced economies, greater corruption is positively related to innovation. Further, we find the relationship between corruption and capital exp20enditure (innovation) is moderated by diversification. Our findings suggest that corruption leads firms to take more action in the areas that the economy has a competitive edge in.
Journal: Applied Economics
Pages: 35-60
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1791313
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1791313
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Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:35-60
Template-Type: ReDIF-Article 1.0
Author-Name: Valentine Jacobs
Author-X-Name-First: Valentine
Author-X-Name-Last: Jacobs
Author-Name: Benoît Mahy
Author-X-Name-First: Benoît
Author-X-Name-Last: Mahy
Author-Name: François Rycx
Author-X-Name-First: François
Author-X-Name-Last: Rycx
Author-Name: Mélanie Volral
Author-X-Name-First: Mélanie
Author-X-Name-Last: Volral
Title: Over-education among immigrants: the role of demographics, time, and firm characteristics
Abstract:
This paper puts the nexus between immigration and over-education to an updated test, capitalizing on the authors’ access to rich Belgian matched employer-employee data for the period 1999–2010. These data enable the authors to i) measure over-education with higher precision, ii) examine the heterogeneous effects of workers’ birth countries, and iii) test the role of key moderators. Using ordered probit estimates, the authors highlight that workers born in developing countries (especially in Asia and North Africa) are much more likely to be over-educated than their opposite numbers born in developed countries. However, the results also show that this gap in over-education is entirely driven by tertiary-educated workers. Gender-based differences in immigrants’ penalties, in contrast, are found to be quite modest overall. In line with statistical discrimination, results further show that tenure has a moderating effect on the likelihood for immigrants born in developing countries to be over-educated and that citizenship acquisition is also associated with improved job matches for those immigrants. Finally, regarding the role of firm characteristics, the authors find that the likelihood for immigrants from developing countries to be over-educated is significantly smaller in bigger firms and when working conditions are collectively renegotiated at the firm level.
Journal: Applied Economics
Pages: 61-78
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1795070
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795070
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Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:61-78
Template-Type: ReDIF-Article 1.0
Author-Name: Stéphane Blancard
Author-X-Name-First: Stéphane
Author-X-Name-Last: Blancard
Author-Name: Maximin Bonnet
Author-X-Name-First: Maximin
Author-X-Name-Last: Bonnet
Author-Name: Jean-François Hoarau
Author-X-Name-First: Jean-François
Author-X-Name-Last: Hoarau
Title: The influence of agriculture on the structural economic vulnerability of small island spaces: Assessment using DEA based composite indicators
Abstract:
Small island spaces are confronted with significant disadvantages that ultimately result in strong economic vulnerability. The conventional literature emphasizes the main role of agriculture in generating structural vulnerability. Specifically, the higher the weight of agriculture compared to other sectors is, the more structurally vulnerable an economy is. However, the recent food crises revealed that the economic dependence on agriculture is not a problem on its own, but the issue is rather the efficiency of this sector along with the orientation of domestic production towards diversification and food self-sufficiency. In this paper, we thus propose a new structural economic vulnerability indicator based on the assumption that promoting the local agriculture could boost development. We insert the share of the agriculture sector in the GDP proxied by imported food dependency into the ‘official’ economic vulnerability index. Moreover, for robustness, the proposed indicator is obtained based on an endogenous weighting system derived from data envelopment analysis. Finally, our simulations for a sample of 131 developing economies point out that considering food dependency reduces dramatically the exposure of small island economies to structural vulnerability.
Journal: Applied Economics
Pages: 79-97
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1795071
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795071
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Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:79-97
Template-Type: ReDIF-Article 1.0
Author-Name: Josephine Dufitinema
Author-X-Name-First: Josephine
Author-X-Name-Last: Dufitinema
Title: Stochastic volatility forecasting of the Finnish housing market
Abstract:
The purpose of the article is to assess the in-sample fit and the out-of-sample forecasting performances of four stochastic volatility (SV) models in the Finnish housing market. The competing models are the vanilla SV, the SV model where the latent volatility follows a stationary AR(2) process, the heavy-tailed SV and the SV with leverage effects. The models are estimated using Bayesian technique, and the results reveal that the SV with leverage effects is the best model for modelling the Finnish house price volatility. The heavy-tailed SV model provides accurate out-of-sample volatility forecasts in most of the studied regions. Additionally, the models’ performances are noted to vary across almost all cities and sub-areas, and by apartment types. Moreover, the AR(2) component substantially improves the in-sample fit of the standard SV, but it is unimportant for the out-of-sample forecasting performance. The study outcomes have crucial implications, such as portfolio management and investment decision-making. To establish suitable time-series volatility forecasting models of this housing market, these study outcomes will be compared to the performances of their GARCH models counterparts.
Journal: Applied Economics
Pages: 98-114
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1795074
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1795074
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Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:98-114
Template-Type: ReDIF-Article 1.0
Author-Name: Amirah El-Haddad
Author-X-Name-First: Amirah
Author-X-Name-Last: El-Haddad
Author-Name: May Mokhtar Gadallah
Author-X-Name-First: May Mokhtar
Author-X-Name-Last: Gadallah
Title: The informalization of the Egyptian economy (1998–2012): a driver of growing wage inequality
Abstract:
We run recentered influence function (RIF) regressions, using Firpo et al. (2007) distributional approach to identify each control variable’s contribution on the decomposition of wage changes. Using the Egyptian Labour Market Surveys 1998–2012 for waged men we find that wage changes between 1998 and 2012 mainly resulted in increased inequality. The richer percentiles have persistently enjoyed disproportionately larger positive changes in real hourly wages. Whilst increasing in all three wage gaps, inequality increased the most between the top and bottom deciles (90–10 gap), i.e. between the lowest and highest wage earners. This increase in inequality is primarily driven by the unexplained wage structure effect. The distinct labour market segments are foremost responsible for the increased inequality trend. Private sector informality is the largest contributor to increased inequality. The sector does not adhere to a minimum wage, and being unregulated it has responded dramatically to the severe competitive pressures caused by the departing middle classes of the public sector. It suppressed mid and low-end wages resulting in sharp wage gaps at the tails. Public sector wage setting dynamics and the direction of labour movements since liberalization cause the sector to contribute more to wage inequality than does its formal private counterpart.
Journal: Applied Economics
Pages: 115-144
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1796917
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1796917
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Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:115-144
Template-Type: ReDIF-Article 1.0
Author-Name: Jinyong Zhan
Author-X-Name-First: Jinyong
Author-X-Name-Last: Zhan
Author-Name: Jingci Zhu
Author-X-Name-First: Jingci
Author-X-Name-Last: Zhu
Title: The effects of state ownership on innovation: evidence from the state-owned enterprises reform in China
Abstract:
With the quasi-natural experiment of state-owned enterprises reform in China, this paper analyzes the relationship between state ownership and innovation. Utilizing difference-in-differences method, this paper estimates the effects of privatization on innovation in terms of R&D expenditure (innovation input), the number of patents, patents for invention (innovation output) and expenditure per patent (innovation efficiency) with Annual Survey of Industrial Enterprises in China over the period of 1998 and 2007. This paper finds that the privatization of state ownership does not significantly raise the R&D expenditure but does increase the innovation output by 2.5% as well as innovation efficiency by 50%. The results are robust to controlling for other types of ownership change and the industry-time disturbances. We also find that state ownership mainly influences firm innovation performance through the channels of increasing wages and financial constraints.
Journal: Applied Economics
Pages: 145-163
Issue: 1
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1796918
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Handle: RePEc:taf:applec:v:53:y:2021:i:1:p:145-163
Template-Type: ReDIF-Article 1.0
Author-Name: Zied Ftiti
Author-X-Name-First: Zied
Author-X-Name-Last: Ftiti
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Wael Louhichi
Author-X-Name-First: Wael
Author-X-Name-Last: Louhichi
Author-Name: Mohamed El Arbi Madani
Author-X-Name-First: Mohamed El Arbi
Author-X-Name-Last: Madani
Title: Are oil and gas futures markets efficient? A multifractal analysis
Abstract:
Energy futures markets have shown high volatility, giving rise to challenges regarding their pricing and efficiency. This study investigates the weak-form efficiency hypothesis for two major energy futures markets (gas and oil) over both calm and crisis periods, using a multifractal approach and intraday data to deal with the flexible econometric framework and rich information. Our results are threefold. First, we show that multifractality in lower frequency might be more biased than in intraday data, which motivates the use of the fractal approach when testing the intraday efficiency. Second, we highlight that high frequency data are characterized by a true long memory with a higher degree of persistence during the post-crisis period for the oil market. However, for lower frequencies, the long memory becomes spurious for both markets. Finally, our forecasting results show that, for the oil market, the proposed multifractal approach outperforms conventional methodologies, especially during turmoil periods.
Journal: Applied Economics
Pages: 164-184
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1801984
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1801984
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Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:164-184
Template-Type: ReDIF-Article 1.0
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Aleksei Egorov
Author-X-Name-First: Aleksei
Author-X-Name-Last: Egorov
Author-Name: Margarita Maximova
Author-X-Name-First: Margarita
Author-X-Name-Last: Maximova
Title: Do merger policies increase universities’ efficiency? Evidence from a fuzzy regression discontinuity design
Abstract:
This paper focuses on the effect of merger policies in Russia on universities’ efficiency. We consider one particular policy of non-voluntary mergers conducted by the Ministry of education based on universities’ performance indicators. In a first stage, efficiency scores of universities are estimated using a bootstrapped DEA non-parametric technique. The efficiency scores were evaluated for universities that were merged and for an appropriate control group formed through a propensity score matching approach before and after implemented policy. Then, a fuzzy regression discontinuity design is implemented in order to reveal the causal impact of mergers on efficiency level. We find positive, statistically significant effect of merger policy on universities’ efficiency. The results of the analysis suggest that merged universities experienced greater efficiency gains (smaller efficiency declines) after the merger was implemented.
Journal: Applied Economics
Pages: 185-204
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1803488
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Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:185-204
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco A. Gallego
Author-X-Name-First: Francisco A.
Author-X-Name-Last: Gallego
Author-Name: Cesar Huaroto
Author-X-Name-First: Cesar
Author-X-Name-Last: Huaroto
Author-Name: Cristóbal Otero
Author-X-Name-First: Cristóbal
Author-X-Name-Last: Otero
Author-Name: Alejandro Sáenz
Author-X-Name-First: Alejandro
Author-X-Name-Last: Sáenz
Title: National institutions and regional development at borders: evidence from the Americas
Abstract:
This paper explores how discontinuities created by national borders can influence development across the Americas. We exploit the discontinuous nature of borders jointly with exogenous variation at the national level to identify discontinuous effects on proxies for economic development at the regional and pixel levels. We separate the effects of national institutions from local historical conditions. Our analysis yields three main findings. First, we find important discontinuities in development across national borders for the Americas. Second, we also show that they are, for the most part, caused by institutional differences at the national level and not for differences at the regional level in geography, climate, endowments, and pre-colonization conditions. Third, we also present evidence that differences in national institutions affect human capital at the regional level.
Journal: Applied Economics
Pages: 205-220
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1804048
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Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:205-220
Template-Type: ReDIF-Article 1.0
Author-Name: Ping Zou
Author-X-Name-First: Ping
Author-X-Name-Last: Zou
Title: Too little or too much? The dynamic adjustment of corporate philanthropy
Abstract:
Previous studies in corporate philanthropy have not found conclusive evidence of specific decision-making processes applied by firms to establish a target level of charitable giving. Using panel data of Chinese firms listed on the Shenzhen and Shanghai stock exchanges between 2009 and 2016,we find that the level of corporate charitable giving and financial performance has an inverted U-type relationship, which implies that maintaining an appropriate level of charitable giving can contribute to maximizing financial performance. This result is robust to the inclusion of various control variables, and control for endogeneity and reverse causality using two-stage least squares. Based on this premise, using partial adjustment model, we find that firms dynamically adjust their charitable giving to a set optimal level. Furthermore, we find that the actual and optimal levels of charitable giving change due to the dynamic nature of the business environment and the costs associated with the adjustment to change. Further analysis shows that privately owned firms can adjust their level of charitable giving faster than state-owned firms. Our study contributes to research by applying a unique method that provides a new perspective on the process of corporate philanthropy decision-making and guides firms in philanthropy engagement.
Journal: Applied Economics
Pages: 221-234
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1804049
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Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:221-234
Template-Type: ReDIF-Article 1.0
Author-Name: Thai-Ha Le
Author-X-Name-First: Thai-Ha
Author-X-Name-Last: Le
Author-Name: Canh Phuc Nguyen
Author-X-Name-First: Canh Phuc
Author-X-Name-Last: Nguyen
Title: The impact of tourism on carbon dioxide emissions: insights from 95 countries
Abstract:
Tourism development seems to have mixed effects on the level of CO2 emissions across the globe. This study thus provides international evidence on the impacts of tourism on carbon dioxide emissions in countries of arrival. We employ alarge panel of 95 countries, consisting of three subsamples of countries classified by income level over the period 1998–2014. The theoretical framework of this study is built based on an extended version of STIRPAT model combined with the EKC. The empirical results are following: (i) tourism (receipts and number of arrivals) reduces total CO2 emissions and CO2 emission from electricity and heat production in the countries of arrival; (ii) tourism increases CO2 emissions from transport, while the number of tourist arrivals increases CO2 emissions per capita; and (iii) The effects of tourism on emissions vary across different income levels. At the global level, tourism appears to increase CO2 emissions from transportation, suggesting that special attention should be paid to supporting green transportation infrastructure technologies and practices in the tourism industry. Overall, there is room for improvement in tourism management in countries of all income levels to promote the development of low-carbon tourism products and services.
Journal: Applied Economics
Pages: 235-261
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1804051
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Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:235-261
Template-Type: ReDIF-Article 1.0
Author-Name: Gilles Dufrénot
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufrénot
Author-Name: Jean-Baptiste Gossé
Author-X-Name-First: Jean-Baptiste
Author-X-Name-Last: Gossé
Author-Name: Caroline Clerc
Author-X-Name-First: Caroline
Author-X-Name-Last: Clerc
Title: Risk sharing in Europe: new empirical evidence on the capital markets channel
Abstract:
This paper assesses the effectiveness of risk sharing mechanisms in Europe by breaking down the factor income components into their sub-components, and aims to further examine whether financial integration and international portfolio diversification boosts or dampens risk sharing. Using a panel of European countries, we compare the years before and after the 2008 financial crisis. We extend the literature by properly taking into account the heterogeneity (in both country and time dimensions) in the panel through new econometric models. Our results show that financial income has become a major channel of risk sharing in recent years and that a higher integration in the bond and equity markets significantly improves risk sharing in the long term.
Journal: Applied Economics
Pages: 262-276
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1804052
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Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:262-276
Template-Type: ReDIF-Article 1.0
Author-Name: Elena Sochirca
Author-X-Name-First: Elena
Author-X-Name-Last: Sochirca
Author-Name: Francisco José Veiga
Author-X-Name-First: Francisco José
Author-X-Name-Last: Veiga
Title: Key determinants of elite rivalry: theoretical insights and empirical evidence
Abstract:
The purpose of this study is to empirically examine the key determinants of elite rivalry and identify their main channels of transmission, contributing to the sparse literature on the topic. Our results show that income level, human capital and the system of checks and balances are strong positive determinants of elite rivalry, while natural resources rents and colonization experience are strong negative determinants. This implies that higher education and income per capita levels and a more efficient separation of powers contribute to reduce elite rivalry, while past colonization experience and higher natural resources rents contribute to aggravate it. As regards transmission channels, about 60% of the determining factors’ overall effect on elite rivalry is transmitted through the legal system and property rights and the political risk channels. Our empirical findings indicate that more efficient institutional models and specific historical and economic factors, can in fact determine the level of elite rivalry in the long run.
Journal: Applied Economics
Pages: 277-291
Issue: 2
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1805099
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1805099
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Handle: RePEc:taf:applec:v:53:y:2021:i:2:p:277-291
Template-Type: ReDIF-Article 1.0
Author-Name: Francisca Pacheco
Author-X-Name-First: Francisca
Author-X-Name-Last: Pacheco
Author-Name: Rafael Sánchez
Author-X-Name-First: Rafael
Author-X-Name-Last: Sánchez
Author-Name: Mauricio G. Villena
Author-X-Name-First: Mauricio G.
Author-X-Name-Last: Villena
Title: Estimating local government efficiency using a panel data parametric approach: the case of Chilean municipalities
Abstract:
Previous empirical evidence on municipal efficiency mostly uses cross-sectional data which makes it impossible to separate unobserved heterogeneity from inefficiency. Furthermore, they also typically use a two-stage approach which has been widely criticized as the assumptions in the first stage are violated in the second stage, generating biased results. We contribute to the literature by putting forward a one stage approach with parametric models and panel data to estimate municipal efficiency of 324 Chilean municipalities for the period 2008–2018. We take into account observed and unobserved heterogeneity, incorporating them both into the frontier and jointly estimating efficiency of all the municipalities in the sample. Our results suggest that Chilean municipalities have a relevant degree of inefficiency as they could achieve the same provision of services with 53% −61% less resources, depending on the specification, and that there is large heterogeneity in their level of efficiency. Finally, we also find that municipalities with a high dependency on the Municipal Common Fund are less efficient supporting the notion of local governments fiscal laziness present in the literature …
Journal: Applied Economics
Pages: 292-314
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808171
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808171
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Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:292-314
Template-Type: ReDIF-Article 1.0
Author-Name: Jerrod Penn
Author-X-Name-First: Jerrod
Author-X-Name-Last: Penn
Author-Name: Wuyang Hu
Author-X-Name-First: Wuyang
Author-X-Name-Last: Hu
Title: Mitigating hypothetical bias by defaulting to opt-out in an online choice
Abstract:
Hypothetical Bias (HB) is an ongoing concern for welfare estimates generated from stated preference approaches. Employing a default option has been shown to affect decision-making and outcomes in a variety of settings. We implement a split-sample design to study the effect of setting the opt-out alternative as a default choice in a Choice Experiment. Our results show that making the opt-out a default significantly decreases the willingness to pay for attributes, indicative of the presence and mitigation of potential HB. Defaulting to the opt-out alternative also causes considerable shifts in the rank of value among the attributes. This study is conducted in the context of proactive protection against bed bugs, an understudied but vexing issue to resource and recreation management as well as to the broader hospitality industry.
Journal: Applied Economics
Pages: 315-328
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808172
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808172
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Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:315-328
Template-Type: ReDIF-Article 1.0
Author-Name: Yurong Zhao
Author-X-Name-First: Yurong
Author-X-Name-Last: Zhao
Author-Name: Yingying Zhang
Author-X-Name-First: Yingying
Author-X-Name-Last: Zhang
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: Quantifying international oil price shocks on renewable energy development in China
Abstract:
It is a common belief that renewable energy is an effective alternative to traditional fossil energy, namely, oil; thus, an international oil price shock is a significant factor affecting renewable energy development. This paper builds a recursive dynamic computable general equilibrium model to explore the effects of rise and fall in international oil price on the investment and outputs of renewable energy industry, as well as the macroeconomy and environment in China. In addition, the role of renewable energy policy is verified through simulating the combination scenario of oil price fluctuation and renewable energy policy. The results reveal that an increasing international oil price can advance the outputs and investment of renewable energy, decrease China’s real GDP and exports, and improve the atmosphere environment, and the influence of a decreasing international oil price is the opposite. Furthermore, renewable energy policy can attenuate the negative effect of a decreasing oil price on renewable energy development and the environment, and strengthen its contribution to GDP.
Journal: Applied Economics
Pages: 329-344
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808173
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808173
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Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:329-344
Template-Type: ReDIF-Article 1.0
Author-Name: Noha Emara
Author-X-Name-First: Noha
Author-X-Name-Last: Emara
Author-Name: Hicran Kasa
Author-X-Name-First: Hicran
Author-X-Name-Last: Kasa
Title: The non-linear relationship between financial access and domestic savings: the case of emerging markets
Abstract:
This paper examines the impact of financial access on the accumulation of domestic savings in emerging markets (EMs) covering countries from Latin America, Europe, Middle East, and Africa (EMEA), and Asia as classified by the Morgan Stanley Capital International (MSCI) index. We use the System Generalized Method of Moments panel estimation methodology on annual data spanning the period 1980-2018. Principal component analysis allows us to create a financial access index as a linear combination of two variables measured per 100,000 adults: number of bank branches per and number of ATMs.The results of the paper reveal a statistically significant nonlinear relationship between the improvement in financial access measures and the accumulation of domestic savings with a definite threshold level. More specifically, our results for the full sample indicate that improvement in financial access may initially increase the savings rateleading to an increase in savings. Nevertheless, once the financial access index reaches its threshold level further improvement in financial access tends decrease households’ precautionary savings and to give rise to a decline in savings. Thus, the duality of the pattern highlights the non-linearity of financial access and domestic savings.
Journal: Applied Economics
Pages: 345-363
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808174
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808174
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Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:345-363
Template-Type: ReDIF-Article 1.0
Author-Name: Kaustav Misra
Author-X-Name-First: Kaustav
Author-X-Name-Last: Misra
Author-Name: Paul W. Grimes
Author-X-Name-First: Paul W.
Author-X-Name-Last: Grimes
Author-Name: Kevin E. Rogers
Author-X-Name-First: Kevin E.
Author-X-Name-Last: Rogers
Title: Private competition and market characteristics: evidence from public school efficiency
Abstract:
The traditional market structure paradigm does not fully identify all components that determine the true degree and complexity of a market’s existing competition. Recently, researchers have redefined market structures and market competition using geographic spatial tools We follow this approach in developing a school competition index (SCI) for the state of Mississippi to define the K-12 market and to measure the competition public schools face from private schools. We separate religious private schools from non-religious private schools as an important market characteristic and create two variables to capture the degree of competition each public school faces from peer religious and non-religious private schools spatially located within their local market area. Results from two-stage stochastic frontier analysis indicate that private schools with a religious affiliation significantly increase public schools’ performance. The results also suggest that students’ race and their socio-economic standard significantly reduce public school efficiency. We conclude that policymakers should consider competition-based school reform policies to increase public school outcomes.
Journal: Applied Economics
Pages: 364-379
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808175
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808175
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Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:364-379
Template-Type: ReDIF-Article 1.0
Author-Name: Fadia Al Hajj
Author-X-Name-First: Fadia
Author-X-Name-Last: Al Hajj
Author-Name: Gilles Dufrénot
Author-X-Name-First: Gilles
Author-X-Name-Last: Dufrénot
Author-Name: Benjamin Keddad
Author-X-Name-First: Benjamin
Author-X-Name-Last: Keddad
Title: Exchange rate policy and external vulnerabilities in Sub-Saharan Africa: nominal, real or mixed targeting?
Abstract:
This paper discusses the theoretical choice of exchange rate regimes in Sub-Saharan African countries that are facing external vulnerabilities. To reduce instability, policymakers choose among promoting external competitiveness using a real anchor, lowering the burden of foreign debt using a nominal anchor or using a policy mix of both anchors. We observe that these countries tend to adopt mixed anchor policies. We solve a state space model to explain the determinants of and the strategy behind this policy. We find that the mixed targeting policy is a two-step strategy: First, monetary authorities choose the degree of nominal exchange rate flexibility according to the velocity of money, trade openness, foreign debt, degree of exchange rate pass-through and exchange rate target zone. Second, authorities seek to stabilize the real exchange rate depending on the degree of competition in the domestic goods market and the degree of foreign exchange intervention. We conclude with regime-switching estimations to provide empirical evidence of how these economic fundamentals influence exchange rate policy in Sub-Saharan Africa.
Journal: Applied Economics
Pages: 380-399
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808176
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808176
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Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:380-399
Template-Type: ReDIF-Article 1.0
Author-Name: Carla Fernandes
Author-X-Name-First: Carla
Author-X-Name-Last: Fernandes
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Author-Name: Jorge Caiado
Author-X-Name-First: Jorge
Author-X-Name-Last: Caiado
Title: The contribution of digital financial services to financial inclusion in Mozambique: an ARDL model approach
Abstract:
This paper analyses the contribution of digital financial services to financial inclusion in Mozambique, based on the Autoregressive Distributed Lag (ARDL) model, for the period from January 2011 to September 2019. We study two models to analyse the contribution of digital financial services to financial inclusion (measured by the number of bank accounts) in Mozambique. The first model uses traditional digital means of payments as independent variables, such as the volume of financial transactions through automated teller machines (ATMs), point-of-sales (POSs), electronic transfers of inter and intrabank funds, direct debit, and domestic and cross-border remittances. The second model considers innovative digital means of payments, such as internet banking, mobile banking and electronic money. We conclude that, excluding domestic remittances and direct debit, which present low levels of penetration in the country, and internet banking transactions, the remaining variables contribute to financial inclusion. Our results confirm the crucial role that digital financial services play in financial inclusion, particularly in improving access to and the use of services by the under-served population.
Journal: Applied Economics
Pages: 400-409
Issue: 3
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808177
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808177
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Handle: RePEc:taf:applec:v:53:y:2021:i:3:p:400-409
Template-Type: ReDIF-Article 1.0
Author-Name: Seyyed Ali Zeytoon Nejad Moosavian
Author-X-Name-First: Seyyed Ali
Author-X-Name-Last: Zeytoon Nejad Moosavian
Author-Name: Barry K. Goodwin
Author-X-Name-First: Barry K.
Author-X-Name-Last: Goodwin
Title: Flexible modelling of multivariate risks in pricing margin protection insurance: modelling portfolio risks with mixtures of mixtures
Abstract:
Margin Protection Programs (MPPs) are relatively new insurance plans, introduced by USDA’s Risk Management Agency (RMA). The attractiveness of these risk management instruments lies in the fact that the financial stability of agricultural production and farming operations is more dependent on margins than solely revenues, which neglect production costs, as is the case for Revenue Protection Programs (RPPs). This article examines the structure and rating of margin protection insurance policies by considering a broad class of high-dimensional copula models that parameterize the dependence among multivariate sources of risks. A variety of copula methods, including Archimedean Copulas (ACs), Mixture Copulas (MCs), and Vine Copulas (VCs) are used to analyse the dependence structure between revenues and input costs. In terms of methodology, flexible mixtures of parametric distributions are applied to characterize marginal densities, and likewise flexible mixtures of alternative copulas are used to model dependence. This article also argues that the rating methodology that accounts for irregular and anomalous features of dependence such as asymmetry, non-linearity, non-ellipticity, and tail dependence between input prices and output prices can result in more accurate premiums, and therefore, can increase the hedging effectiveness of the MPPs and the market efficiency in the US crop insurance market.
Journal: Applied Economics
Pages: 411-440
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808170
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808170
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Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:411-440
Template-Type: ReDIF-Article 1.0
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Muhammad Azeem Qureshi
Author-X-Name-First: Muhammad Azeem
Author-X-Name-Last: Qureshi
Title: The nexus between policy uncertainty, sustainability disclosure and firm performance
Abstract:
Policy uncertainty (PU), and sustainability disclosure, influence the performance of the firms. We use European data to extend the nascent literature on sustainability disclosure, and economic policy uncertainty by investigating the moderating impact of sustainability disclosure on the relationship between economic policy uncertainty and firm performance. We find overwhelming evidence that policy uncertainty reduces firm performance; however, sustainability disclosure moderates this destructing impact of policy uncertainty on firm performance. Our results show that environmental and social disclosure by the European firms enhances their reputation and help these firms in reducing the policy-induced uncertainty. A higher governance disclosure representing efficient corporate governance also help European firms to moderate the negative effect of policy uncertainty on their performance. Our results are robust to alternate proxies of firm performance as well as endogeneity issues.
Journal: Applied Economics
Pages: 441-453
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808178
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808178
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Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:441-453
Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Hsien Chuang
Author-X-Name-First: Shih-Hsien
Author-X-Name-Last: Chuang
Title: Aviation taxation and tax incidence
Abstract:
This paper investigates tax incidence resulting from the ‘combined unit tax’ levied on domestic air travel. Using a panel dataset and estimating with first-differences, I find that domestic aviation taxes are over-shifted to passengers by 30–70 cents per dollar tax. A potential nonlinear relationship between tax and fare changes is detected. The results are essential to future studies on tax salience. Seasonal effects are the most pronounced in periods with high demand. I extend the literature by providing fresh evidence of tax incidence in the airline industry and complementing the over-shifting results found in other industries.
Journal: Applied Economics
Pages: 454-468
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808179
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808179
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Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:454-468
Template-Type: ReDIF-Article 1.0
Author-Name: Sok Chul Hong
Author-X-Name-First: Sok Chul
Author-X-Name-Last: Hong
Author-Name: Dongyoung Kim
Author-X-Name-First: Dongyoung
Author-X-Name-Last: Kim
Author-Name: Eutteum Lee
Author-X-Name-First: Eutteum
Author-X-Name-Last: Lee
Title: The long-term human toll of natural disasters: a study of fetal exposure to the 1974 Tornado super outbreak
Abstract:
This study investigates the long-term effect of fetal exposure to the 1974 Tornado Super Outbreak. Using the 2008–2017 American Community Survey and a difference-in-differences framework, we estimate the adverse effects of this stressful in-utero shock on health and socioeconomic outcomes in adulthood. The effects explain 7% of the average probability of having at least one physical/cognitive difficulty and are robust to selection and migration issues. We find weaker effects on adulthood socioeconomic status and birth outcomes. The weaker effects on adulthood socioeconomic outcomes are because of complementing parental behaviours. We suggest maternal stress and fear as a key mechanism. Our estimate implies that the annual earned income loss from disaster-driven health problems was $72 million in 2017. Our findings suggest that the adverse impacts on late outcomes might be largely caused by maternal stress due to the unpredictability of the Tornado Super Outbreak. (JEL I15, O10, Q54)
Journal: Applied Economics
Pages: 469-481
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808181
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808181
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Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:469-481
Template-Type: ReDIF-Article 1.0
Author-Name: Yen-Chen Chiu
Author-X-Name-First: Yen-Chen
Author-X-Name-Last: Chiu
Author-Name: I-Yuan Chuang
Author-X-Name-First: I-Yuan
Author-X-Name-Last: Chuang
Title: Unconditional density vs conditional density functions in estimating value-at-risk
Abstract:
This research compares the performance of 10 Value-at-Risk (VaR) models, including pure density models (student’s t, mixture of normal, double gamma, kernel, and GPD) and conditional density models (GARCH-student’s t, GARCH-mixture of normal, GARCH-double gamma, GARCH-kernel, and GARCH-GPD). We employ these models and test their performance in Asian markets, including over the 2008 financial crisis period. Findings show that the density functions used in conjunction with the GARCH models are capable of capturing the high peak, fat-tails, and volatility clustering of returns and can improve the accuracy of VaR forecasts. Furthermore, the proposed GARCH-double gamma provides the best fit for all tested Asian markets, both developed and emerging markets, and for foreign exchange rates markets.
Journal: Applied Economics
Pages: 482-494
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808182
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808182
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Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:482-494
Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Yuxin Xie
Author-X-Name-First: Yuxin
Author-X-Name-Last: Xie
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: COVID-19 outbreak, government capital injections, and shadow banking efficiency
Abstract:
This paper investigates the effects of the novel coronavirus (COVID-19) outbreak and government capital injections on the bank’s optimal interest margin and the efficiency gain/loss from the shadow banking operations. The down-and-out call option approach is adapted to model the structural break in volatility to capture the COVID-19 outbreak. Results show that the COVID-19 outbreak reduces the optimal bank interest margin, government capital injections enhance the margin, and both the outbreak and capital injections harm the efficiency gain from shadow banking. COVID-19, as such, makes the bank more prone to risk-taking, thereby adversely affecting banking stability.
Journal: Applied Economics
Pages: 495-505
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808183
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808183
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Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:495-505
Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Sun Young Hwang
Author-X-Name-First: Sun Young
Author-X-Name-Last: Hwang
Title: Functional ARCH directional dependence via copula for intraday volatility from high-frequency financial time series
Abstract:
This paper proposes a copula directional dependence by using a bivariate Gaussian copula beta regression with the functional ARCH(1) (fARCH) model to suit high-frequency time series that account for intraday volatilities. With simulated high-frequency data, we show how the copula fARCH directional dependence of intraday volatility can be useful in terms of graphical displays for tick-by-tick price changes in a day. We can perform a test of significance of the copula fARCH directional dependence of intraday volatility by the permutation test, p-value, and bootstrapping confidence interval. To validate our proposed method with real data, we use the Korea Composite Stock Price Index (KOSPI) and the Hyundai-Motor (HD-Motor) company stock data with one minute high-frequency. We show that copula fARCH directional dependence of intraday volatility by B-spline basis function is superior to that by Fourier basis function in terms of the per cent relative efficiency of bias and mean squared error. This research shows that the copula functional ARCH directional dependence of intraday volatility can be an important statistical method to illustrate the directional dependence of intraday volatility in the financial market.
Journal: Applied Economics
Pages: 506-520
Issue: 4
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808184
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808184
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Handle: RePEc:taf:applec:v:53:y:2021:i:4:p:506-520
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Biscione
Author-X-Name-First: Antonella
Author-X-Name-Last: Biscione
Author-Name: Raul Caruso
Author-X-Name-First: Raul
Author-X-Name-Last: Caruso
Author-Name: Annunziata de Felice
Author-X-Name-First: Annunziata
Author-X-Name-Last: de Felice
Title: Environmental innovation in European transition countries
Abstract:
The aim of this paper is to highlight the determinants of environmental innovation of manufacturing firms in European Transition countries. Following an established literature, the analysis relies upon data drawn from the Community Innovation Survey - CIS14 . The data are cross-section covering the period between 2012 and 2014. We employ a multivariate probit model to observe the effect of several drivers on eco-innovation, captured by: (i) eco-product; (ii) eco-process; (iii) eco-organization. Findings highlight that regulation influences all measures of eco-innovation. The results are confirmed also when we perform alternative estimations. It is worth noting that – after interacting expected regulation and turnover – expected regulation has an impact on the current decision on eco-innovation if and only if the firms have a large turnover. Another interaction term between turnover and tax rates is positively associated with eco-innovation, so suggesting that when tax rate appears to be too high, firms prefer to invest in environmental innovation rather than being taxed.
Journal: Applied Economics
Pages: 521-535
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808185
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808185
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Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:521-535
Template-Type: ReDIF-Article 1.0
Author-Name: Sun-Ki Choi
Author-X-Name-First: Sun-Ki
Author-X-Name-Last: Choi
Author-Name: John Garen
Author-X-Name-First: John
Author-X-Name-Last: Garen
Title: The federal-private wage differential: how has it evolved?
Abstract:
This paper is the first to document and analyse the variation of the federal-private pay differential over time. We estimate the evolution of the federal-private pay differential from 1995 to 2017 using Current Population Survey data, enabling us to examine the current pay gap and how it has changed. To do so, wage regressions are estimated by year and used to calculate the yearly federal-private wage differential. To deal with unobserved heterogeneity, we adopt control function methods. We also estimate the probability of receiving employer-provided health insurance and a pension plan each year for each sector. The findings imply that the federal pay differential is invariably positive, but has varied substantially. We examine the reasons for this variation and find that the most robust result is the positive effect of federal spending as a share of GDP, ipromplying that a 1 percentage point increase in federal spending as a share of GDP raises the federal pay differential by 1.3 to 1.75 percentage points.
Journal: Applied Economics
Pages: 536-554
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808572
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808572
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Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:536-554
Template-Type: ReDIF-Article 1.0
Author-Name: Simona Bigerna
Author-X-Name-First: Simona
Author-X-Name-Last: Bigerna
Author-Name: Carlo Andrea Bollino
Author-X-Name-First: Carlo Andrea
Author-X-Name-Last: Bollino
Author-Name: Philipp Galkin
Author-X-Name-First: Philipp
Author-X-Name-Last: Galkin
Title: Balancing energy security priorities: portfolio optimization approach to oil imports
Abstract:
The notion of energy security in most interpretations includes the physical supply and price affordability components, making financial risks a crucial part of energy security strategies. Mainstream analysis has focussed on the notion of the physical supply. This paper introduces a novel approach, considering simultaneously the quantity of oil imports and the risk associated with this quantity. This approach applies the financial portfolio theory to explore these issues from the perspective of four major Asian energy importers: China, Japan, Korea and Taiwan, by estimating efficient frontiers for corresponding oil import portfolios. Results show that the composition of oil import portfolios determines varying risk levels for given oil import growth rates and average import prices. Scenario analysis suggests that increasing the Saudi Arabia share of oil imports improves the portfolio performance of China and that the impact of the Iranian oil export embargo would increase portfolio risk of the economies in focus within a 3–15% range.
Journal: Applied Economics
Pages: 555-574
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808573
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808573
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Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:555-574
Template-Type: ReDIF-Article 1.0
Author-Name: Keehwan Park
Author-X-Name-First: Keehwan
Author-X-Name-Last: Park
Author-Name: Zhongzheng Fang
Author-X-Name-First: Zhongzheng
Author-X-Name-Last: Fang
Title: Fractional non-diversifiable risk and stock market returns
Abstract:
This article introduces a new risk metric of stock returns. It measures the fraction of the non-diversifiable risk relative to the individual risk of a typical stock in the stock market and is shown to be closely related to average correlation between individual stocks. Using the Korean stock market data, we show that the fractional non-diversifiable risk varies over time, and in particular, sharply rises during the financial crisis periods. We find that the relation between risk and return at the aggregate level is negative contemporaneously, but positive with a time lag. As a robustness check, we extend our analysis to the U.S. and the U.K. markets. Our results shed light on resolving the conflicting risk and return relations reported in the literature.
Journal: Applied Economics
Pages: 575-594
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808574
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808574
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Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:575-594
Template-Type: ReDIF-Article 1.0
Author-Name: Yang Jiao
Author-X-Name-First: Yang
Author-X-Name-Last: Jiao
Author-Name: Yixuan Li
Author-X-Name-First: Yixuan
Author-X-Name-Last: Li
Author-Name: Mengdi Liu
Author-X-Name-First: Mengdi
Author-X-Name-Last: Liu
Title: Widening the Gap? Temperature and Time Allocation between Men and Women
Abstract:
Gender differences in time use have been documented in the literature, but knowledge about the nature of such gender gaps remains limited. This study aims to examine whether changes in temperature, affect gender differentials in time allocation and the potential mechanisms through which the responses might operate. Based on the time use survey data, we find that, relative to men, women decrease their labour supply by approximately one hour during days with extremely high temperatures, despite having fewer working hours than men over the entire distribution of temperature. However, gender differentials in the time allocated to housework and leisure change little with temperature. Our further investigation indicates a substantial part of the gender gap can be explained by gender disparity in family responsibilities due to marriage and parenthood. The gender gap in supply to the market work is more pronounced for those with young children.
Journal: Applied Economics
Pages: 595-627
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808575
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808575
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Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:595-627
Template-Type: ReDIF-Article 1.0
Author-Name: Jiawen Luo
Author-X-Name-First: Jiawen
Author-X-Name-Last: Luo
Author-Name: Qun Zhang
Author-X-Name-First: Qun
Author-X-Name-Last: Zhang
Title: Risk contagions between global oil markets and China’s agricultural commodity markets under structural breaks
Abstract:
This article investigates the linear and non-linear dependence structures of risk contagions between global crude oil futures markets and China’s agricultural futures markets based on a regime switching skew-normal (RSSN) model. We examine the oil-agriculture relationships and identify the contagion channels under the calm and turbulent oil market conditions. The directions of contagions are further identified with the directed acyclic graph (DAG) from the linear non-Gaussian acyclic models algorithm. The empirical results of contagions tests show the significance of correlation and covariance contagions across the oil and agriculture futures returns, especially under the turbulent oil market condition. The breaks in the variances through the moment-based break tests are found to be most significant, followed by the mean and skewness breaks. In addition, the DAG results support the volatility contagions from world oil future markets to China’s agricultural commodity futures markets. Our empirical results have important policy implications for the government to take effective measures to stabilize China’s commodity market and promote the development of alternative energy in China, as well as for market participants to best manage the market risks.
Journal: Applied Economics
Pages: 628-649
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808577
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808577
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Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:628-649
Template-Type: ReDIF-Article 1.0
Author-Name: Shahina Amin
Author-X-Name-First: Shahina
Author-X-Name-Last: Amin
Author-Name: Bulent Uyar
Author-X-Name-First: Bulent
Author-X-Name-Last: Uyar
Title: Pay gap between foreign-born and native-born doctors in the United States
Abstract:
Foreign-born doctors are an integral part of the U.S. labour market for doctors. About 29% of physicians, 24% of dentists, 16% of optometrists and 11% of podiatrists are not born in the United States. This study investigates whether, on average, there is a difference between the earnings of foreign-born doctors and their native-born counterparts, all else equal. The American Community Survey Data from 2006 to 2017 and two measures of doctors’ earnings: wage (and salary) income and total income (includes wages/salaries, business, investment income, etc.) are used. The results indicate that all else constant, all foreign-born doctors earn significantly (p < 0.01) less wage than native-born doctors for the first 5 years of their stay in the U.S. The wage gap decreases with their length of stay in the U.S. After 10 years of stay, foreign-born male doctors start to earn significantly more than their native-born counterparts (p < 0.05). However, when total income is considered, all foreign-born doctors earn significantly (p < 0.01) less than their native-born counterparts for up to 20 years of stay in the U.S. The magnitude of the total income gap is larger than that of the wage gap. All results remain robust even after ability is controlled for.
Journal: Applied Economics
Pages: 650-662
Issue: 5
Volume: 53
Year: 2021
Month: 01
X-DOI: 10.1080/00036846.2020.1808578
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808578
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Handle: RePEc:taf:applec:v:53:y:2021:i:5:p:650-662
Template-Type: ReDIF-Article 1.0
Author-Name: Jung K. Kim
Author-X-Name-First: Jung K.
Author-X-Name-Last: Kim
Author-Name: Yumi Koh
Author-X-Name-First: Yumi
Author-X-Name-Last: Koh
Title: Pretrial justice reform and property crime: evidence from New Jersey
Abstract:
Several states and localities have begun to implement various forms of pretrial justice reforms aimed at reducing the size of pretrial detainee population. However, empirical investigation of the effect of such reforms on crimes more broadly (other than recidivism) is limited. We analyse the effect of the 2017 New Jersey Criminal Justice Reform on property crimes. We find that property crime per 100,000 population increased by 22.5% within the first two years. Our findings suggest that reducing the likelihood of pretrial detention for less violent crimes can have substantial impact on behavioural incentives for offenders of such crimes.
Journal: Applied Economics
Pages: 663-675
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1808579
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808579
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Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:663-675
Template-Type: ReDIF-Article 1.0
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Author-Name: WeiYa Long
Author-X-Name-First: WeiYa
Author-X-Name-Last: Long
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Title: Manufacturing R&D investment efficiency and financing constraints: evidence from China
Abstract:
Enhancing the level of Research and Development (R&D) investment by China’s manufacturing enterprises and thus improving their independent innovation capabilities are the core to enhance the country’s industrial competitiveness. This research thus explores the threshold effect of financing constraints on manufacturing R&D investment from the perspective of financing constraints which impact such investment. We first define the related concepts of financing constraints and R&D investment and then discuss the theoretical basis for forming those constraints. The research data sample covers 68 A-share listed manufacturing companies from 2007 to 2016, and we apply the panel threshold model to conduct empirical research. The results show that financing constraints have a negative impact on the R&D investment of listed manufacturing companies, and that there is a non-linear relationship between threshold effects. When the asset-liability ratio is less than or equal to 0.4142, the financing constraint has a small negative impact on the R&D investment of these firms; when the asset-liability ratio is greater than 0.4142, the financing constraint has a greater negative impact on their R&D investment. Based on the findings, we propose relevant policy recommendations.
Journal: Applied Economics
Pages: 676-687
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1808580
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808580
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Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:676-687
Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Lin
Author-X-Name-First: Qiang
Author-X-Name-Last: Lin
Author-Name: Beibei Qiao
Author-X-Name-First: Beibei
Author-X-Name-Last: Qiao
Title: The relationship between trade credit and bank loans under economic fluctuations - based on the perspective of the supply chain
Abstract:
Bank loans and trade credit (B&T) are the most important short-term loan sources for enterprises. Therefore, it is important to study the relationship between them and whether this relationship is affected by some factors. This paper uses the panel data of all A-share listed companies in China from 2000 to 2018 to study the relationship between B&T, as well as the impact of economic fluctuations, profits, status and ownership on this relationship. Several findings are noted. First, there is a complementary relationship and this relationship is affected by economic fluctuations, profits, status and ownership. Second, economic fluctuations, profit, status and ownership have a negative impact on the relationship between B&T. The complementary effects will weaken under the image of economic fluctuations, profit, status, and ownership. Finally, economic fluctuations, profit, status and ownership have a greater impact on the relationship between bank loans and accounts payable than on bank loans and accounts receivable.
Journal: Applied Economics
Pages: 688-702
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1809632
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1809632
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Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:688-702
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Marmora
Author-X-Name-First: Paul
Author-X-Name-Last: Marmora
Author-Name: Brenden J. Mason
Author-X-Name-First: Brenden J.
Author-X-Name-Last: Mason
Title: Does the shadow economy mitigate the effect of cashless payment technology on currency demand? dynamic panel evidence
Abstract:
Recent government attempts at reducing currency demand by promoting cashless payment technology, e.g., subsidies for point-of-sale terminals, have met with mixed success. In this paper, we argue that one reason is the shadow economy: as the size of the unrecorded economy grows, cashless payment technology has a weaker effect on the demand for cash. To test this hypothesis, we analyse a panel of 37 countries over the years 2004–2014 including data on point-of-sale terminals, financial cards in circulation, and the value of total card payments. Using the first principal component of these variables as a proxy for cashless payment technology, we find that a 1% increase in underground activity lowers the impact of cashless technology on the velocity of currency in circulation by 0.3%. This decrease is large enough that the average marginal effect of cashless technology on currency velocity is statistically insignificant for several high-shadow countries over the sample period. Overall, our results suggest that government subsidization of digital payment infrastructure will be ineffective when shadow markets are prevalent.
Journal: Applied Economics
Pages: 703-718
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1813246
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1813246
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Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:703-718
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Enrique Escalante
Author-X-Name-First: Luis Enrique
Author-X-Name-Last: Escalante
Author-Name: Hélène Maisonnave
Author-X-Name-First: Hélène
Author-X-Name-Last: Maisonnave
Author-Name: Margaret Raviro Chitiga
Author-X-Name-First: Margaret Raviro
Author-X-Name-Last: Chitiga
Title: Do South African fiscal reforms benefit women?
Abstract:
Economic reforms affect men and women differently. In South Africa, gender and racial disparities still exist in the labour market, with women being highly vulnerable. The South African economy is in a depressed situation, with high levels of debt and public deficit. To improve the financial situation of the country, the government has implemented two new fiscal reforms: increase Value-added tax (VAT) for all commodities by 1%, excluding food, and reduce public spending by 5%. This paper evaluates the impacts of both reforms on women from all population groups in terms of employment and poverty levels, by using a Computable General Equilibrium model with micro-simulations. The simulations reveal that both policies have negative impacts on agents, particularly households and firms and poverty levels among women of all population groups. The hike in VAT increases the number of poor households, with women more affected than men. The drop in public spending shows negative impacts for all agents, however, it has lower impacts on poverty levels than those occurring from increasing VAT. The results reveal that South African women, of all population groups, are more vulnerable to the negative impacts of both reforms than men.
Journal: Applied Economics
Pages: 719-729
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1813247
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1813247
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Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:719-729
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Blake-Gonzalez
Author-X-Name-First: Barbara
Author-X-Name-Last: Blake-Gonzalez
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: James V. Koch
Author-X-Name-First: James V.
Author-X-Name-Last: Koch
Title: Drug-overdose death rates: the economic misery explanation and its alternatives
Abstract:
‘Deaths of despair’ is the most commonly cited explanation for the 151% increase in drug-overdose deaths that occurred in the USA between 2010 and 2018. We use panel data describing 84 Virginia cities and counties to assess the validity of the deaths of despair hypothesis and alternate explanations that focus on disability rates, travel time to work, urban vs. rural location, educational attainment, racial and ethnic characteristics, the influence of other health conditions such as obesity, and supply-side factors that include pill availability and pharmacy market shares. We find deaths of despair to be only a partial explanation for the upsurge in drug-overdose deaths and conclude that a much broader view of the causes of drug-overdose deaths is merited.
Journal: Applied Economics
Pages: 730-741
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1813248
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1813248
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Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:730-741
Template-Type: ReDIF-Article 1.0
Author-Name: Hany Fahmy
Author-X-Name-First: Hany
Author-X-Name-Last: Fahmy
Title: How technological emergence, saturation, and rejuvenation are re-shaping the e-commerce landscape and disrupting consumption? A time series analysis
Abstract:
Technological advancements in the ICT sector have enabled the development of online platforms that have drastically transformed the e-commerce landscape. The rise of the sharing economy is a key in point. Academics claim that this change is causing a noticeable shift in consumers’ habits from traditional towards collaborative and sharing activities due to environmental, social, and economic motives. In this article, we test the empirical validity of this hypothesis; namely, we test whether or not the recent change in e-commerce landscape is causing a permanent transition in US consumption over the last two decades by fitting a nonlinear smooth transition regression model to the cycle of US consumption with a constructed exogenous regime-driving variable that captures the various aspects of digital technology. The econometric analysis confirms the existence of a non-permanent regime switch in consumption. In particular, we show that the emergence, saturation, and rejuvenation of digital technology are causing consumption to switch between two stationary regimes. Consumption oscillates smoothly, but frequently, between both regimes in the early period (2000-2006) due to the emergence of new technologies and in the recent period (2017-2019) due to technological rejuvenation. It persists, however, in the mid period (2007-2016) due technological saturation.
Journal: Applied Economics
Pages: 742-759
Issue: 6
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1813249
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1813249
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Handle: RePEc:taf:applec:v:53:y:2021:i:6:p:742-759
Template-Type: ReDIF-Article 1.0
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Furkan Emirmahmutoglu
Author-X-Name-First: Furkan
Author-X-Name-Last: Emirmahmutoglu
Author-Name: Syed Jawad Hussain Shahzad
Author-X-Name-First: Syed Jawad
Author-X-Name-Last: Hussain Shahzad
Title: Comparison of optimization algorithms for selecting the fractional frequency in Fourier form unit root tests
Abstract:
We compare the performance of unit root tests which include flexible Fourier trends in their testing processes. The algorithms considered are those of Broyden, Fletcher, Goldfarb and Shanno (BFGS), Berndt, Hall, Hall and Hausman (BHHH), Simplex, Genetic and grid search (GS). The simulation results indicate that derivative-free methods, such as Genetic and Simplex, have advantages over hill-climbing methods, such as BFGS and BHHH in providing accurate fractional frequencies for fractional frequency flexible Fourier form (FFFFF) unit root test. When the parameters are estimated under the alternative hypothesis of the FFFFF type of unit root test, the grid search and derivative-free methods provide unbiased and efficient estimations. We also provide the asymptotic distribution of the FFFFF unit root test. We extend the FFFFF unit root test to a panel version in order to increase the power of the test. Finally, the empirical analyses of Covid19 unit root test show that derivative-free methods, are better than other methods. However, for big data and accurate estimation of the frequency parameters, the Simplex methodology using the bootstrap process is preferred.
Journal: Applied Economics
Pages: 761-780
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1814945
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814945
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Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:761-780
Template-Type: ReDIF-Article 1.0
Author-Name: Donghua Wang
Author-X-Name-First: Donghua
Author-X-Name-Last: Wang
Author-Name: Jin Ding
Author-X-Name-First: Jin
Author-X-Name-Last: Ding
Author-Name: Guoqing Chu
Author-X-Name-First: Guoqing
Author-X-Name-Last: Chu
Author-Name: Dinghai Xu
Author-X-Name-First: Dinghai
Author-X-Name-Last: Xu
Author-Name: Tony S. Wirjanto
Author-X-Name-First: Tony S.
Author-X-Name-Last: Wirjanto
Title: Modelling asset returns in the presence of price limits with Markov-switching mixture of truncated normal GARCH distribution: evidence from China
Abstract:
This article proposes a general framework of a Markov Switching GARCH model with a mixture of truncated Gaussian to model asset returns with price limits in China. Theoretically, while retaining many convenient statistical properties of the Gaussian distribution, the proposed model also assumes a flexible time-varying volatility structure to accommodate the feature of the return data under price restrictions in China, such as the clusters near the bounds (due to the ‘bound effect’). Empirically, we apply the model to eight representative stocks from Shanghai and Shenzhen stock markets in China. Lastly, we find that our proposed model dominates the conventional volatility models in terms of Value-at-Risk measures.
Journal: Applied Economics
Pages: 781-804
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1814946
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814946
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Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:781-804
Template-Type: ReDIF-Article 1.0
Author-Name: Murat Genç
Author-X-Name-First: Murat
Author-X-Name-Last: Genç
Author-Name: Stephen Knowles
Author-X-Name-First: Stephen
Author-X-Name-Last: Knowles
Author-Name: Trudy Sullivan
Author-X-Name-First: Trudy
Author-X-Name-Last: Sullivan
Title: In search of effective altruists
Abstract:
The effective altruism movement argues that people wanting to do the most good they can should donate to charities fighting poverty in poor countries overseas, rather than to charities helping people in need in wealthy countries. This is because there is greater need in the developing world meaning it is possible to save lives or improve living conditions at reasonably low cost. However, most people living in developed countries prefer to donate to charities helping people in need in their own country, rather than charities helping people in need in the developing world. This paper analyses why this might be. We conduct a discrete choice experiment to determine the relative importance people place on the effectiveness of a donation, the need of recipients, and whether the donation will be spent at home or overseas. We find that many people place more weight on where the donation will be spent than on how effective it will be. We also find that a significant number of people are not aware, or do not believe, a donation will be more effective in the developing world. In addition, many people’s donation decisions are guided by emotion or intuition, rather than rational calculation.
Journal: Applied Economics
Pages: 805-819
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1814947
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814947
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Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:805-819
Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kim
Author-X-Name-First: Minjung
Author-X-Name-Last: Kim
Title: Firm’s globalization and wage elasticity of labour demand in South Korea
Abstract:
This study investigates the effects of exports and overseas investments on the wage elasticity of labour demand for both foreign multinational corporations (MNCs) and Korean MNCs using a 2006–2015 firm-level unbalanced panel dataset from South Korea. I employ the system generalized method of moments to estimate a dynamic labour demand function to solve the problem of reverse causality due to potential endogeneity. The results suggest that exports play a critical role in increasing wage elasticity among foreign MNCs, whereas overseas investments render labour demand more elastic among both foreign MNCs and Korean MNCs. Particularly, these effects of globalization on increasing wage elasticity became strengthened among foreign MNCs during the post-financial crisis period. Moreover, the intra-firm and inter-firm exports of foreign MNCs from OECD nations, which reflect the vertical integration of foreign MNCs with their affiliated firms, increase the wage elasticity of labour demand. Since overseas investments induce higher wage elasticity of labour demand, overseas investment substitutes for local production activity. These empirical results imply that the rapid pace of globalization exacerbates the instability of the local labour market, and the aggravation of employment vulnerability during the post-crisis period is driven by foreign MNC activity.
Journal: Applied Economics
Pages: 820-829
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1814948
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814948
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Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:820-829
Template-Type: ReDIF-Article 1.0
Author-Name: Hongshan Ai
Author-X-Name-First: Hongshan
Author-X-Name-Last: Ai
Author-Name: Yang Hu
Author-X-Name-First: Yang
Author-X-Name-Last: Hu
Author-Name: Ke Li
Author-X-Name-First: Ke
Author-X-Name-Last: Li
Title: Impacts of environmental regulation on firm productivity: evidence from China’s Top 1000 Energy-Consuming Enterprises Program
Abstract:
Regulatory environmental policy is crucial for energy conservation and emission reduction. However, no consensus is available on its impact on enterprises’ total factor productivity (TFP). This study took 6631 chemical enterprises as examples to investigate the impacts of the Top 1000 Energy-Consuming Enterprises Program (T1000P) on enterprises’ productivity. The empirical results from the difference-in-differences method indicate that the T1000P hinders TFP improvement. Specifically, the TFP change rate of enterprises affected by the T1000P decreased by 0.9230% annually. Mechanism analysis shows that the impact of T1000P includes increasing business costs, and reducing the profits of regulated companies. By checking the ‘compensation effect’ and ‘crowding out effect’ of the T1000P on enterprises’ technological progress, we prove that the T1000P had negative impacts on technological innovation and reduced the enterprises’ productivity. Therefore, the environmental regulations should be implemented based on industry characteristics and develop differentiated strategies to avoid excessive interference with the enterprises’ production decisions.
Journal: Applied Economics
Pages: 830-844
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1815642
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1815642
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Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:830-844
Template-Type: ReDIF-Article 1.0
Author-Name: Rose Cunningham
Author-X-Name-First: Rose
Author-X-Name-Last: Cunningham
Author-Name: Eden Hatzvi
Author-X-Name-First: Eden
Author-X-Name-Last: Hatzvi
Author-Name: Kun Mo
Author-X-Name-First: Kun
Author-X-Name-Last: Mo
Title: The size and destination of China’s portfolio outflows
Abstract:
China’s large financial system is relatively closed, raising concerns that liberalization of China’s capital account could have disruptive effects on the global financial system. We estimate a portfolio allocation model to estimate an economy’s foreign portfolio investment, using panel data for 39 economies. We estimate the model separately for equity and debt securities holdings. We find that portfolio allocation to a foreign economy depends on the destination economy’s market size, gravity variables, governance indicators and capital controls in source and destination economies. We then construct a counterfactual scenario of China’s overseas portfolio investment allocations in 2015 if China had liberalized capital outflows. The analysis indicates that China’s holdings of overseas portfolio assets would have been large at 13% to 29% of Chinese GDP, or 5 to 12 times its actual levels. These asset holdings would have been predominantly from the world’s deepest financial markets: the United States, euro area and Japan. Emerging-market economies would have received relatively little additional portfolio inflows from China, suggesting that liberalization of China’s portfolio outflows may not prove disruptive to the global financial system.
Journal: Applied Economics
Pages: 845-867
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1817307
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1817307
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Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:845-867
Template-Type: ReDIF-Article 1.0
Author-Name: Lifang Xu
Author-X-Name-First: Lifang
Author-X-Name-Last: Xu
Title: A Model of Nominal Wage Stickiness
Abstract:
This paper builds a parsimonious model of nominal wage stickiness based on wage dispersion induced by search frictions. The paper shows that this model can explain those salient features of wage adjustment in the data, including the average frequency of wage adjustment, the average duration of a wage, and the size distribution of wage changes.
Journal: Applied Economics
Pages: 868-879
Issue: 7
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820441
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820441
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Handle: RePEc:taf:applec:v:53:y:2021:i:7:p:868-879
Template-Type: ReDIF-Article 1.0
Author-Name: Yunyun Jiang
Author-X-Name-First: Yunyun
Author-X-Name-Last: Jiang
Author-Name: Haitao Zheng
Author-X-Name-First: Haitao
Author-X-Name-Last: Zheng
Author-Name: Ran Wang
Author-X-Name-First: Ran
Author-X-Name-Last: Wang
Title: The effect of institutional ownership on listed companies’ tax avoidance strategies
Abstract:
The percentage of institutional ownership in China has increased gradually. Does this characteristic of Chinese institutional investors affect their participation in corporate governance, which in turn, affects corporate tax avoidance activities? We take 1108 listed Chinese companies from 2009 to 2017 to study this issue. The paper uses average daily total market capitalization as an instrumental variable to test the endogeneity problems. We run a quantile regression (QR) at the median level as robustness testing to overcome the fat tail of financial data. Then, the shareholding ratio of majority shareholders is introduced to verify that ownership concentration is one of the mechanisms through which institutional shareholders influence corporate tax avoidance decisions. The findings are as follows: The proportion of institutional investors’ shareholdings is positively related to the degree of enterprise tax avoidance. The increase in institutional investors’ shareholdings is likely to promote corporate tax avoidance. When the level of ownership concentration is low, the increase in institutional ownership can play a greater role in promoting tax avoidance.
Journal: Applied Economics
Pages: 880-896
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1817308
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1817308
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Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:880-896
Template-Type: ReDIF-Article 1.0
Author-Name: Chandan Sharma
Author-X-Name-First: Chandan
Author-X-Name-Last: Sharma
Author-Name: Debdatta Pal
Author-X-Name-First: Debdatta
Author-X-Name-Last: Pal
Title: Revisiting resource curse puzzle: new evidence from heterogeneous panel analysis
Abstract:
This study examines the natural resource curse hypothesize on a panel of 111 countries over the period 1996–2015. Using a range of heterogeneous panel cointegration techniques, it tests the resource curse hypothesis while allowing for cross-section heterogeneity. Specifically, it employs common correlated effects mean group, cross-sectionally augmented autoregressive distributed lag (CS-ARDL), and cross-sectionally augmented distributed lag (CS-DL) techniques. It begins the analysis with a conventional method in which the average value of variables is considered. The conventional approach fails to provide any clear evidence. The CCEMG estimator yields limited evidence supporting the resource curse in the long-run. However, CS-DL and CS-ARDL results show strong evidence for resources as a curse in the short-run, however, the evidence is weak in suggesting any long-run influence of resource-dependence on economic growth. Furthermore, CS-ARDL-based results also show that the effects work with a lag. Overall, we find support for the resource curse hypothesis, suggesting that resource-rich economies tend to grow at a slower rate in comparison to the resource-deprived ones.
Journal: Applied Economics
Pages: 897-912
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1817309
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1817309
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Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:897-912
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Osman
Author-X-Name-First: Mohamed
Author-X-Name-Last: Osman
Title: Persistence, mean reversion, and non-linearities in inflation rates in the GCC countries: an eclectic approach
Abstract:
The inflation rate is a key variable in many macroeconomic models that are used to guide policy analysts and lead to effective decisions. However, achieving this outcome depends, to a large extent, upon the validity of these macroeconomic models whose successes, in turn, critically depend on whether inflation is stationary or not. In this paper, we investigate the dynamics of inflation in the Gulf Cooperation Council countries using both linear and non-linear tests. To add an extra layer of robustness to our results, we avoid the pitfalls of the econometrics of stationarity by applying the MS-ADF and Fourier ADF tests. After using a battery of tests, the analysis provides more reliable inferences on the question of whether the inflation rates of these countries are I(0) or I(1). The findings convincingly support the view that not only are the inflation rates of these countries non-linear, but they are also characterized by mean-reversion behaviour. The policy implication of our findings is that random shocks will not have permanent effects and that active monetary policies are not needed, as these effects will eventually disappear in the long run.
Journal: Applied Economics
Pages: 913-923
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1819950
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1819950
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Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:913-923
Template-Type: ReDIF-Article 1.0
Author-Name: Diana Becerra-Peña
Author-X-Name-First: Diana
Author-X-Name-Last: Becerra-Peña
Author-Name: Daniel Santin
Author-X-Name-First: Daniel
Author-X-Name-Last: Santin
Title: Measuring public primary education productivity across Mexican states using a Hicks-Moorsteen index
Abstract:
Despite the importance of analysing how an educational system works across regions, there is a lack of research benchmarking regions’ performance over time. The aim of this research is to measure total factor productivity changes (TFPC) in the primary education sector across 30 Mexican states over eight academic years from 2006–07 to 2013–14. To do this, we calculate the Hicks-Moorsteen total factor productivity index (HMTFP) using information on third-grade primary education students attending publicly funded schools. We also explore the main environmental factors behind these differences in productivity. Estimates for the analysed period show an average positive TFPC of 1.91%, driven by technological progress. We also find a significant positive effect on productivity when the policy party governing at the federal and the state levels coincide. The paper concludes by pointing out the need to use school-level data to monitor and evaluate the education systems as an indispensable element for delivering efficient and effective public administration services to citizens.
Journal: Applied Economics
Pages: 924-939
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1819951
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1819951
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Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:924-939
Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Igor Pereira
Author-X-Name-First: Igor
Author-X-Name-Last: Pereira
Title: The relationship between terrorist attacks and cryptocurrency returns
Abstract:
Complementing increasing concerns that cryptocurrency could be used to finance terror networks, in this paper we investigate the effect of monthly terrorist attacks outcomes – success, injuries, and fatalities – on monthly returns of 1,178 cryptocurrencies representing 18,016 cryptocurrency-year-months between 2014 and 2018. The monthly percentage of successful terror attacks Granger causes the monthly cryptocurrency returns and lowers the monthly cryptocurrency returns. Increasing success in terror attacks is negatively associated with cryptocurrency returns, the count of wounded is negatively associated with cryptocurrency returns, however, the count of dead is positively associated with cryptocurrency returns. The success in terror attacks has the largest effect on returns, relative to the count of wounded and dead. The estimates are consistent when controlling for cross-sectional correlation among major cryptocurrencies, and cryptocurrencies could be a weak hedge against successful terrorist attacks. The findings are robust to cryptocurrencies in the top three quartiles of the market capitalization and the mediation analysis shows that terror attacks lower returns through the decline in the short-term macroeconomic cycle.
Journal: Applied Economics
Pages: 940-961
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1819952
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1819952
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Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:940-961
Template-Type: ReDIF-Article 1.0
Author-Name: Xi Zhang
Author-X-Name-First: Xi
Author-X-Name-Last: Zhang
Author-Name: Renatas Kizys
Author-X-Name-First: Renatas
Author-X-Name-Last: Kizys
Author-Name: Christos Floros
Author-X-Name-First: Christos
Author-X-Name-Last: Floros
Author-Name: Konstantinos Gkillas
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Gkillas
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Testing for rational bubbles in the UK housing market
Abstract:
Over the past decade, the UK has witnessed significant booms in the real estate market, and housing prices have experienced increases. Since 1997, the housing price has almost tripled, which is far beyond the long-term trend. To identify the existence of housing bubbles is a crucial issue for any country to prevent possible damage to economies and outbreaks of financial crises. The objective of this paper is to examine the existence of a housing price bubble in the UK through employing a co-explosive vector autoregression (VAR) model, originally applied to stock markets. The results demonstrate that both housing price and rental price show explosive behaviour during their growth, which provides little evidence to support the presence of real estate bubbles in the UK.
Journal: Applied Economics
Pages: 962-975
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820440
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820440
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Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:962-975
Template-Type: ReDIF-Article 1.0
Author-Name: Jianxin Wu
Author-X-Name-First: Jianxin
Author-X-Name-Last: Wu
Author-Name: Yanrui Wu
Author-X-Name-First: Yanrui
Author-X-Name-Last: Wu
Author-Name: Tsun Se Cheong
Author-X-Name-First: Tsun Se
Author-X-Name-Last: Cheong
Title: New evidence on the convergence and regional clusters in China: a weighted continuous distribution dynamics approach
Abstract:
This paper examines income convergence by using a continuous distribution dynamics approach which takes both population and economic size into consideration. The study is based on a panel dataset of 31 Chinese provinces from 1952 to 2013. The impacts of geographical location, capital accumulation, trade openness and industrial structure are also evaluated by conditional analysis. This paper provides a new angle for examining the spatial distribution dynamics of China’s provincial income. The results show that the ergodic distribution of the pre-reform period is multimodal, while the ergodic distribution of the post-reform period is bimodal. However, the ergodic distribution of the more recent period 2000–2013 is found to be unimodal. All three ergodic distributions are right-skewed. The weighted analysis shows that by neglecting population and economic size, the economic performance in the pre-reform period may be overestimated, while the poverty reduction effect in the post-reform period may be underestimated. The results suggest that relocating people and economic activities to high-income provinces is an important approach to reduce relative poverty. Conditional analysis results indicate that geographical location, capital accumulation, trade openness and industrial structure have a significant influence on the distribution dynamics of per capita GDP. However, the observed bimodality cannot be explained by one of the four factors.
Journal: Applied Economics
Pages: 976-995
Issue: 8
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820443
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820443
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Handle: RePEc:taf:applec:v:53:y:2021:i:8:p:976-995
Template-Type: ReDIF-Article 1.0
Author-Name: Hideaki Sakawa
Author-X-Name-First: Hideaki
Author-X-Name-Last: Sakawa
Author-Name: Naoki Watanabel
Author-X-Name-First: Naoki
Author-X-Name-Last: Watanabel
Title: Main bank relationships and risk taking in Japanese listed firms
Abstract:
Bank–firm relationships play a role in the degree of corporate risk taking that guides financing decisions. As such, we study whether the magnitude of corporate risk taking is associated with close bank–firm ties in Japan. To this end, we use data on publicly listed firms from 2007 to 2016 following the bank mergers that occurred in the wake of Japanese financial deregulation, and select risk variables such as idiosyncratic and total risk as proxies for corporate risk taking. The empirical evidence suggests that close bank ties can drive firms to take fewer risks. The results remain unchanged even after controlling for endogeneity. Finally, we observe that smaller firms with higher growth opportunities tend to reduce the degree of corporate risk taking when they form close bank ties.
Journal: Applied Economics
Pages: 996-1012
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820444
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820444
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Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:996-1012
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Faisal Shahzad
Author-X-Name-First: Muhammad Faisal
Author-X-Name-Last: Shahzad
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: The heterogeneous effects of adoption of climate-smart agriculture on household welfare in Pakistan
Abstract:
In this study, we analyse the heterogeneity in the impacts of adoption of climate-smart agricultural (CSA) practices on welfare indicators such as food and nutrition security and poverty reduction in Pakistan. We employ the marginal treatment effects (MTE) approach to estimate the treatment effects heterogeneity and policy-relevant treatment effects (PRTE). The findings show substantial heterogeneity in benefits from adoption of CSA with respect to both observed and unobserved household characteristics. In particular, the estimates show that households with higher unobserved benefits are more likely to adopt CSA practices. The empirical results show that adoption of CSA practices significantly reduces household food insecurity and increases household dietary diversity but reduces the poverty headcount and severity of poverty of the households at the lower level of unobserved resistance to adoption. The PRTE indicate that sources of climate change information and climate-resilient trainings could help to reduce rural poverty and improve food and nutrition security in Pakistan.
Journal: Applied Economics
Pages: 1013-1038
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1820445
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820445
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Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1013-1038
Template-Type: ReDIF-Article 1.0
Author-Name: Max Resende
Author-X-Name-First: Max
Author-X-Name-Last: Resende
Author-Name: Francis Petterini
Author-X-Name-First: Francis
Author-X-Name-Last: Petterini
Title: Simulating the effects of automatic promotion on early dropouts for both poor and rich students: an application to Brazilian data
Abstract:
The debate regarding the relative effects of automatic grade promotion versus grade retention has long concerned education policymakers and researchers. This work applies a random-effects probit model to assess the probability of early dropout in Brazilian public schools based on a unique administrative database which permits to infer household income at the student level for more than 60 thousand pupils enrolled in 273 schools. The results suggest evidence that decisions to drop out early are significantly influenced by whether approval has taken place and age-grade distortion. Moreover, simulation exercises have suggested that automatic grade promotion policy could reduce up to 35% the probability of a low-income student dropout from secondary school, while 24% for their rich peers.
Journal: Applied Economics
Pages: 1039-1051
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1822510
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1822510
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Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1039-1051
Template-Type: ReDIF-Article 1.0
Author-Name: Blaise Gnimassoun
Author-X-Name-First: Blaise
Author-X-Name-Last: Gnimassoun
Author-Name: Isabelle Do Santos
Author-X-Name-First: Isabelle
Author-X-Name-Last: Do Santos
Title: Robust structural determinants of public deficits in developing countries
Abstract:
Many macroeconomic, institutional, demographic, social and political variables have been proposed by previous studies as significant determinants of public deficits in developing countries. This paper asks whether their estimated impact on public deficits is robust under thousands of possible alternative specifications. We deal with model uncertainty using Sala-i-Martin’s Extreme Bound Analysis. Our results clearly show that external shocks, the debt ratio, financial development, the level of democracy and government control over expenditures are robustly associated with fiscal deficits. Public deficits are lower in countries which provide better stability of public expenditure in the face of revenue instability and which are less exposed to negative external shocks. In contrast, fiscal deficits increase with the debt ratio, financial development and the level of democracy. The relative importance of external shocks in all the regressions argues in favour of greater economic diversification in order to mitigate the impact of negative shocks on public finances.
Journal: Applied Economics
Pages: 1052-1076
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1824063
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1824063
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Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1052-1076
Template-Type: ReDIF-Article 1.0
Author-Name: Ateeb Akhter Shah Syed
Author-X-Name-First: Ateeb Akhter Shah
Author-X-Name-Last: Syed
Author-Name: Kevin Haeseung Lee
Author-X-Name-First: Kevin Haeseung
Author-X-Name-Last: Lee
Title: Macroeconomic forecasting for Pakistan in a data-rich environment
Abstract:
This article forecasts the CPI inflation, GDP growth and the weighted average overnight repurchase rate in Pakistan using 161 predictors covering a period from July 2007 to July 2017. We use the naïve mean model and the autoregressive model as benchmark models and compare their forecasting performance against the dynamic factor model (DFM) and sophisticated machine learning methods such as the Ridge regression, the LASSO, the Elastic net and a few variants of Bagging. The main purpose of the article is to determine, how well the commonly used DFM which has been used for time series forecasting for a long time, performs against the recently developed penalized regression methods in forecasting key macroeconomic variables in Pakistan. We forecast the variables of interest over 12 months forecast horizon. The forecast evaluation criteria used to compare the forecast performance of these models is the RMSE and MASE. For each variable of interest, we find that, for majority of the cases considered, one of the competing approaches outperform the benchmark models and other competing approaches at majority of forecast horizons. Our results show that, on the balance, the machine learning approaches perform better than the benchmark, the autoregressive and the DFM.
Journal: Applied Economics
Pages: 1077-1091
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1826399
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1826399
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Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1077-1091
Template-Type: ReDIF-Article 1.0
Author-Name: Mauricio Varas
Author-X-Name-First: Mauricio
Author-X-Name-Last: Varas
Author-Name: Franco Basso
Author-X-Name-First: Franco
Author-X-Name-Last: Basso
Author-Name: Sergio Maturana
Author-X-Name-First: Sergio
Author-X-Name-Last: Maturana
Author-Name: Raúl Pezoa
Author-X-Name-First: Raúl
Author-X-Name-Last: Pezoa
Author-Name: Marcelo Weyler
Author-X-Name-First: Marcelo
Author-X-Name-Last: Weyler
Title: Measuring efficiency in the Chilean wine industry: a robust DEA approach
Abstract:
The Chilean wine industry has been quite innovative in terms of winemaking and trading. Yet, to survive in this competitive industry, wine managers should be aware of the relevance of monitoring their performance. In this paper, we assess how the five wineries listed on the Santiago Stock Exchange of Chile are efficient while using their critical resources for making profits. Particularly, we apply data envelopment analysis (DEA) to benchmark and rank these wineries’ technical efficiency based on four inputs and one output. We use data gathered from consolidated financial statements that are prepared using estimates, judgements, and assumptions. To account for some level of ex-post adjustments in data, we evaluate these wineries’ relative efficiency using a robust DEA model, which deals with ambiguous, imprecise, and uncertain input-output parameters. We analyse several levels of variability suitable for this data source, and we evaluate how changing the conservatism level affects technical efficiency and the rankings of the wineries. We also conduct a comparison between the five Chilean wineries and nine others from the New World. As the main conclusion, we found that Chilean wineries keep their efficiency level when including international firms in the analysis.
Journal: Applied Economics
Pages: 1092-1111
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1826400
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1826400
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Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1092-1111
Template-Type: ReDIF-Article 1.0
Author-Name: Bern Caudill Dealy
Author-X-Name-First: Bern Caudill
Author-X-Name-Last: Dealy
Author-Name: Aaron Kearsley
Author-X-Name-First: Aaron
Author-X-Name-Last: Kearsley
Author-Name: Carolyn Wolff
Author-X-Name-First: Carolyn
Author-X-Name-Last: Wolff
Author-Name: Elizabeth Botkins
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Botkins
Author-Name: Nellie Lew
Author-X-Name-First: Nellie
Author-X-Name-Last: Lew
Author-Name: Clark Nardinelli
Author-X-Name-First: Clark
Author-X-Name-Last: Nardinelli
Title: Willingness to pay to standardize patient medication information
Abstract:
Pharmacists dispense prescription drugs with leaflets containing information about the specific medication a patient receives. These leaflets vary in format, length, content, and readability for the same prescription drug at different pharmacies; they also vary for different prescription drugs at the same pharmacy. Previous research has found that most patients prefer standardization of these leaflets; however, standardization is costly, and there are no published studies that estimate the value of such standardization to consumers. We use a contingent valuation survey to investigate consumer willingness to pay for standardized informational leaflets in the retail pharmacy setting. We present results of analyses based on contingent valuation responses of 510 federal government employees. The survey design was a double-bounded advisory referendum elicitation format where respondents were presented with examples of standardized and non-standardized prescription drug information formats. The study found the willingness to pay for standardized informational leaflets was approximately $1.37 per household per month. The estimated willingness to pay is sensitive to alternative econometric specifications, evidence of possible survey response bias; however, across all models, the estimates are statistically and economically significant.
Journal: Applied Economics
Pages: 1112-1126
Issue: 9
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1826401
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1826401
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Handle: RePEc:taf:applec:v:53:y:2021:i:9:p:1112-1126
Template-Type: ReDIF-Article 1.0
Author-Name: Yuhuang Shang
Author-X-Name-First: Yuhuang
Author-X-Name-Last: Shang
Author-Name: Qingma Dong
Author-X-Name-First: Qingma
Author-X-Name-Last: Dong
Title: Oil volatility forecasting and risk allocation: evidence from an extended mixed-frequency volatility model
Abstract:
This paper proposes a novel GARCH-MIDAS-SK (G-M-SK) model that improves the basic GARCH-MIDAS (G-M) model by incorporating time-varying skewness and kurtosis. We employ our model with data concerning macroeconomic fundamentals to investigate in-sample fit and out-of-sample prediction of volatility in crude oil prices. Empirical results suggest that G-M-SK models produce the better in-sample fit than basic G-M models do. This result is also robust for the subsample of the oil market. It is equally noteworthy that modelling low-frequency macroeconomic variables better reveals the long-term volatility from time-varying skewness and kurtosis. More importantly, G-M-SK model significantly and robustly improves accuracy in predicting oil volatility. In particular, we find that data regarding macroeconomic fundamentals contribute more to forecasting volatility in oil prices than their variance does. Finally, our G-M-SK model more precisely calculates the utility incident to minimizing risk and allocating portfolios. Its results are consistent with out-of-sample forecasting results. These results are beneficial to the decision-making of the crude oil investors and policymakers alike.
Journal: Applied Economics
Pages: 1127-1142
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1826402
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1826402
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Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1127-1142
Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chi Yin
Author-X-Name-First: Chi
Author-X-Name-Last: Yin
Author-Name: Min-Rui Choo
Author-X-Name-First: Min-Rui
Author-X-Name-Last: Choo
Title: Bank competition and firms’ dependence: evidence from firms’ role
Abstract:
This research provides empirical evidence on bank-firm relationships from firms’ role in discussing their dependence on banks from the perspectives of bank competition. Using a rich dataset of loans, we find that firms reduce their dependence on banks when banks operate in a more competitive environment. These effects are more pronounced when firms are financially distressed and constrained. Moreover, firms with active family control exhibit less dependence on lenders in a competitive environment. Our evidence provides specific strategies and self-consideration of borrowers and lenders.
Journal: Applied Economics
Pages: 1143-1162
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1827134
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827134
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Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1143-1162
Template-Type: ReDIF-Article 1.0
Author-Name: Alexandre Frondizi
Author-X-Name-First: Alexandre
Author-X-Name-Last: Frondizi
Author-Name: Simon Porcher
Author-X-Name-First: Simon
Author-X-Name-Last: Porcher
Title: The economics of street-level prostitution in Paris during the ‘Belle Epoque’ (1870-1914)
Abstract:
How can districts become completely embedded in informal economies despite harsh state regulation? In this paper, we use qualitative and quantitative data to explain the increasing number of ‘clandestine’ street-level prostitutes in a district of Paris during the Belle Epoque (1870–1914). Using an original dataset on street-level prostitutes, we describe the economics of street-level prostitution at the time: street prostitutes were young, unskilled and relatively well paid; they tended to work with pimps who were from the same area and clustered in neighbourhoods where they could compete with regulated brothels. Street prostitutes generated profits not only for themselves but also for a whole range of actors, thereby switching the whole local economy to this industry at the expense of the formal economy.
Journal: Applied Economics
Pages: 1163-1177
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1827135
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827135
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Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1163-1177
Template-Type: ReDIF-Article 1.0
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Author-Name: William A. Allen
Author-X-Name-First: William A.
Author-X-Name-Last: Allen
Title: Effects of the Fed’s enhanced swap line with the ECB on CIP deviations
Abstract:
In this paper we study the effects of the enhancement of the Fed’s swap line with the ECB during the coronavirus epidemic on dollar cross-currency basis swap spreads against the euro, which had widened during the coronavirus crisis, reflecting greater deviations from covered interest parity (CIP). We find that the enhanced swap line contributed to making the three-month dollar cross-currency basis swap spreads against the euro less negative, i.e. narrowing the CIP deviations.
Journal: Applied Economics
Pages: 1178-1183
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1827137
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827137
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Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1178-1183
Template-Type: ReDIF-Article 1.0
Author-Name: Ripon Kumar Mondal
Author-X-Name-First: Ripon Kumar
Author-X-Name-Last: Mondal
Author-Name: Eliyathamby A Selvanathan
Author-X-Name-First: Eliyathamby A
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Title: Nexus between rural nonfarm income and agricultural production in Bangladesh
Abstract:
Evidence from the rural livelihood literature shows that farm households in developing countries engage in nonfarm employment to supplement their household income. This raises the question of whether nonfarm income complements or competes with agricultural production due to a possible shift in farm household labour to nonfarm employment. Using survey data, this study examines the impact of rural nonfarm income on farm households’ agricultural production in Bangladesh. Applying the instrumental variable Tobit model, we find a nonlinear relationship between nonfarm income and total production expenditure as well as expenditures on major purchased inputs (equipment, seed, fertilizer, purchased labour). This indicates that when nonfarm income rises, production expenditure increases but at a decreasing rate. Furthermore, the endogenous stochastic frontier production model indicates that technical inefficiency in agricultural production decreases at an increasing rate when nonfarm income rises. Overall, the findings of this study suggest that nonfarm income exerts an income effect on agricultural production by reducing the liquidity constraint and intensifying major purchased inputs. Thus, introducing policies that would increase rural nonfarm income opportunities to rural households complements agricultural production. This would also lead to raised food production, ultimately leading to an increase in food availability as well as food security.
Journal: Applied Economics
Pages: 1184-1199
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1827138
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827138
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Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1184-1199
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Breuer
Author-X-Name-First: Christoph
Author-X-Name-Last: Breuer
Author-Name: Sören Dallmeyer
Author-X-Name-First: Sören
Author-X-Name-Last: Dallmeyer
Author-Name: Christopher Rumpf
Author-X-Name-First: Christopher
Author-X-Name-Last: Rumpf
Author-Name: Johannes Orlowski
Author-X-Name-First: Johannes
Author-X-Name-Last: Orlowski
Title: The effect of sponsorship portfolio size on brand choice: an experimental approach
Abstract:
Profound knowledge of the behavioural response to sponsorship messages is sparse. In an effort to provide a better understanding of the relationship between sponsorship investments and the consumer’s brand choice, an online experiment was conducted focusing on the role of the sponsorship portfolio size. In the context of sponsorship activities in the English Premier League, the study investigates how brand decision making can be influenced by the number of sponsored players wearing a particular footwear brand. Based on a microeconomic perspective, additional factors influencing the brand decision-making process, such as the overall brand status and prior brand experience, are considered. Logit regression models reveal that brand-choice behaviour is sensitive to the extent of sponsorship portfolio size, however, in a non-linear way. The results can be regarded as a next step in predicting the behavioural outcomes from sponsorship activities as the basis to estimate the economic efficiency of sponsorship investment.
Journal: Applied Economics
Pages: 1200-1211
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1834500
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1834500
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Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1200-1211
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Author-Name: Yu Wang
Author-X-Name-First: Yu
Author-X-Name-Last: Wang
Title: Price dynamics of China’s housing market and government intervention
Abstract:
China’s housing sector offers an interesting case study of relationship between government interventions and price dynamics. Frequent and intensive government interventions create a highly fluctuant housing market in China. This paper applies a structural break model to investigate the dynamics in the evolution of China’s housing price between 1998 and 2016. Results show that the development of China’s real estate market exhibits much richer characteristics of structural changes rather than simple switching between boom and burst. Further studies indicate that government interventions is the most important source of structural changes in the dynamics of China’s housing market because of the inherent conflict between policy aims of market stability and rapid economic development mainly backed up by the housing sector.
Journal: Applied Economics
Pages: 1212-1224
Issue: 10
Volume: 53
Year: 2021
Month: 02
X-DOI: 10.1080/00036846.2020.1838432
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1838432
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Handle: RePEc:taf:applec:v:53:y:2021:i:10:p:1212-1224
Template-Type: ReDIF-Article 1.0
Author-Name: Imad A. Moosa
Author-X-Name-First: Imad A.
Author-X-Name-Last: Moosa
Author-Name: Ibrahim N. Khatatbeh
Author-X-Name-First: Ibrahim N.
Author-X-Name-Last: Khatatbeh
Title: Robust and fragile determinants of the infection and case fatality rates of Covid-19: international cross-sectional evidence
Abstract:
An attempt is made to identify the factors that can explain inter-country differences in the severity of Covid-19, measured by the infection and case fatality rates. To circumvent the problem of the sensitivity of the results with respect to the selected set of explanatory variables, extreme bounds analysis (EBA) is applied to a cross-sectional sample of 154 countries. The results show that the infection and fatality rates depend on different factors, except for the number of tests, which is a robust determinant of both. An interesting result is that the infection rate depends on urban population rather than the overall population density. Another interesting result is that the fatality rate depends on the age structure of the population and population density but not on the percentage of urban population.
Journal: Applied Economics
Pages: 1225-1234
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1827139
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827139
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Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1225-1234
Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Yuan Wu
Author-X-Name-First: Chih-Yuan
Author-X-Name-Last: Wu
Author-Name: Heng-Chih Chou
Author-X-Name-First: Heng-Chih
Author-X-Name-Last: Chou
Author-Name: Chiung-Lin Liu
Author-X-Name-First: Chiung-Lin
Author-X-Name-Last: Liu
Title: Fear index and freight rates in dry-bulk shipping markets
Abstract:
This study constructs a fear index for the dry-bulk shipping market. Principal component analysis and min-max scaling are employed to extract the fear sentiment of the four dry-bulk vessel sectors. The main findings are as follows: (1) the fear index could play as a contrarian predictor of the freight rate; (2) the fear index spiked sharply responding to the major financial risk events; (3) ship operators are less risk-averse than investors in financial markets, so the asymmetric effect of the fear index on the freight-rate return is unique; and (4) the fright-rate volatility is positively affected by the fear index, and the asymmetry varies by the vessel sizes. These findings demonstrate that the fear index increases the predictability of freight rate, and helps investors to measure the level of risk or stress in the market.
Journal: Applied Economics
Pages: 1235-1248
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1827140
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827140
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Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1235-1248
Template-Type: ReDIF-Article 1.0
Author-Name: Chaohua He
Author-X-Name-First: Chaohua
Author-X-Name-Last: He
Author-Name: Guangchen Li
Author-X-Name-First: Guangchen
Author-X-Name-Last: Li
Author-Name: Hai Fan
Author-X-Name-First: Hai
Author-X-Name-Last: Fan
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: Correlation between Shanghai crude oil futures, stock, foreign exchange, and gold markets: a GARCH-vine-copula method
Abstract:
The relationship between markets has always been a topic of heated debate among scholars from various countries. One of the most important concerns is the need to model the relationships between the crude oil market and other markets. Based on daily return observations from 2018 to 2019, we apply a GARCH-vine-copula approach to probe the linkage between Shanghai crude oil futures, stock, foreign exchange, and gold markets. We find that obvious tail dependencies do exist between these markets. And the crude oil futures market occupies a dominant position. Moreover, when the Shanghai crude oil futures market is taken as the known condition, the links between different markets reduce to some extent. Finally, value at risk results denote that the risk of the Shanghai crude oil futures market is relatively high, but portfolio investment can effectively reduce the risk. Moreover, the model fitting results at different confidence levels have passed the Kupiec backtest, indicating that the model in this paper fits the relationship between these markets well.
Journal: Applied Economics
Pages: 1249-1263
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828566
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828566
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Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1249-1263
Template-Type: ReDIF-Article 1.0
Author-Name: Hyoyoung Kim
Author-X-Name-First: Hyoyoung
Author-X-Name-Last: Kim
Author-Name: Jinkwon Lee
Author-X-Name-First: Jinkwon
Author-X-Name-Last: Lee
Title: Distributive fairness and the social responsibility of the representative of a group
Abstract:
Using an ultimatum game experiment where a representative makes a decision on behalf of the group members and equally shares the outcomes with them, we investigate whether the representative’s social responsibility exists and has a systematic relationship with his or her individual distributive fairness. The experimental results show that the representative of a respondent group tends to change his or her individual willingness to accept due to social responsibility. More importantly, we find that the minimum fairness of other members in the group tends to be the representative’s group standard for aggregating fairness, and that representatives whose individual fairness is higher [lower] than the minimum fairness of other members has a strong [negligible] tendency to incorporate their group members’ fairness preferences. According to our conceptual framework, this tendency can be only consistent with a positive correlation between the representative’s social responsibility and his or her individual distributive fairness. The results suggest that an incentive mechanism for a representative making a public decision would need to consider such a positive correlation between his or her social responsibility and distributive fairness.
Journal: Applied Economics
Pages: 1264-1279
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828805
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828805
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Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1264-1279
Template-Type: ReDIF-Article 1.0
Author-Name: El Mostafa Bentour
Author-X-Name-First: El Mostafa
Author-X-Name-Last: Bentour
Title: On the public debt and growth threshold: one size does not necessarily fit all
Abstract:
In a time of high debt and sluggish economic growth, the Reinhart and Rogoff (2010) conjecture of a common 90% debt threshold for advanced economies triggered a controversial debate among economists and policy-makers. We analyse the relationship between public debt and economic growth for a sample of 20 advanced economies over the period of 1880–2010, using a regression kink model with an unknown threshold proposed by Hansen (2017). We show that the relationship between public debt and economic growth is time-varying and state-dependent. Particularly, the public debt and economic growth relationship is instable for each country in the sample across the whole period of 1880–2010, and the postwar period of 1950–2010, and subject to data and country heterogeneities. These findings reject the existence of any common threshold fitting all countries and call for more theory-based models that take into account fundamentals that vary between countries and impact debt–growth interactions.
Journal: Applied Economics
Pages: 1280-1299
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828806
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828806
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Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1280-1299
Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Aldieri
Author-X-Name-First: Luigi
Author-X-Name-Last: Aldieri
Author-Name: Bruna Bruno
Author-X-Name-First: Bruna
Author-X-Name-Last: Bruno
Author-Name: Concetto Paolo Vinci
Author-X-Name-First: Concetto Paolo
Author-X-Name-Last: Vinci
Title: A multi-dimensional approach to happiness and innovation
Abstract:
In this paper, we start to address the lack of research into the relationship between innovation and subjective wellbeing (SWB). We focus on four channels by which innovation may influence SWB, namely income, use of ICT technologies, inequality and unemployment, synthesizing them into a conceptual framework. This framework constitutes the foundation for our theoretical model and empirical investigation of the relationship between innovation and SWB. As previous literature shows, the impact of innovation on SWB through these four channels is mostly negative. Analysis of panel data from eight European countries over the period 1980–201$ on the effects of technological innovation, measured in terms of patents, on population wellbeing confirms the negative impact of innovation on SWB. The analysis has policy implications, because it provides improved estimates of the contribution of innovation to collective wellbeing.
Journal: Applied Economics
Pages: 1300-1310
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828807
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828807
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Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1300-1310
Template-Type: ReDIF-Article 1.0
Author-Name: Dayong Dong
Author-X-Name-First: Dayong
Author-X-Name-Last: Dong
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Author-Name: Zhou Lu
Author-X-Name-First: Zhou
Author-X-Name-Last: Lu
Author-Name: Cheng Yan
Author-X-Name-First: Cheng
Author-X-Name-Last: Yan
Title: Personal consumption in the United States during the COVID-19 crisis
Abstract:
Using daily credit/debit card spending data for personal consumption expenditures for the period from 24 January 2020 to 10 June 2020, this paper shows that personal consumption expenditures in the United States have been significantly affected by the economic shocks in the COVID-19 era. The evidence is valid when we consider the data both at the national and state levels. The evidence is also valid when we use the data for consumers at different income levels and consumption within different sectors. The only exception is consumption in grocery and food stores since the effect is dampened at the national level and in 31 of 51 states.
Journal: Applied Economics
Pages: 1311-1316
Issue: 11
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828808
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828808
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Handle: RePEc:taf:applec:v:53:y:2021:i:11:p:1311-1316
Template-Type: ReDIF-Article 1.0
Author-Name: David Havrlant
Author-X-Name-First: David
Author-X-Name-Last: Havrlant
Author-Name: Abdulelah Darandary
Author-X-Name-First: Abdulelah
Author-X-Name-Last: Darandary
Author-Name: Abdelrahman Muhsen
Author-X-Name-First: Abdelrahman
Author-X-Name-Last: Muhsen
Title: Early estimates of the impact of the COVID-19 pandemic on GDP: a case study of Saudi Arabia
Abstract:
The COVID-19 pandemic has affected economic sectors in a very heterogeneous way. In the early stages of the economic lockdown, only limited economic data, if any, related to the event were available. With the government’s discretionary measures to contain the infection, it became obvious that some sectors will suffer more than others. We have used this information within the input-output framework to calibrate demand shocks to individual sectors and to obtain early estimates of the impact on sectoral and overall GDP. Given the high level of uncertainty, we designed three scenarios, reflecting the severity of the shock, its sectoral distribution, and the time needed for recovery, and applied to the Saudi economy. The negative impact on headline GDP in 2020 is estimated to range from −4.8% to −9.8% compared to the baseline level, while the government’s fiscal countermeasures result in a positive effect of some 2.5% in real GDP. The study also shows how to accommodate a qualitative shift in economic conditions given the still-evolving pandemic. We consider the potential situation of a second wave of the infection that would enforce a protracted lockdown and imply second-round effects.
Journal: Applied Economics
Pages: 1317-1325
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1828809
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1828809
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Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1317-1325
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Spillovers and portfolio optimization of agricultural commodity and global equity markets
Abstract:
We investigate the portfolio allocation and risk contribution characteristics of agricultural commodities, and the volatility spillovers between agricultural commodities and global and regional equity markets. We draw our results by applying a directional spillover index and a nonlinear portfolio optimization method. We find that the largest transmission and reception of spillovers occur among wheat, corn and soybeans, and between sugar cane and sugar beets. All global and regional stock market indices considered most largely spillover on cotton and cocoa. The global and Americas stock market indices are most largely spillovered by corn and soybeans. Also, while the European stock market index is most largely spillovered by cotton, the Asia Pacific stock market index is most largely spillovered by wheat and coffee. The portfolio optimization shows that sugar cane, followed by wheat and corn, are the largest risk contributors to total portfolio risk, whereas, cocoa, followed by lumber and cotton, are the lowest risk contributors to total portfolio risk. Cocoa and lumber are the most desirable for investment. Implications of the results are discussed.
Journal: Applied Economics
Pages: 1326-1341
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1830937
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1830937
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Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1326-1341
Template-Type: ReDIF-Article 1.0
Author-Name: Marina Ehab
Author-X-Name-First: Marina
Author-X-Name-Last: Ehab
Author-Name: Chahir R. Zaki
Author-X-Name-First: Chahir R.
Author-X-Name-Last: Zaki
Title: Global value chains and service liberalization: do they matter for skill-upgrading?
Abstract:
This study attempts to assess the effect of Global Value Chains (GVCs) and service liberalization on skill-upgrading. It provides a bridge between two active literatures on GVCs and service liberalization. Using comprehensive firm-level data from the World Bank Enterprise Survey, the contribution of this paper is twofold. First, it focuses on the effect of GVC integration on skill-upgrading in the presence of service restrictions. Second, it uses firm-level data on 141 developing economies. Our main findings suggest that integration in GVC results in skill-upgrading whilst service trade restrictions are associated with skill-downgrading. We argue that more restricted services weaken the channels by which GVC stimulates the process of skill-upgrading. Therefore, skill-upgrading resulting from GVC participation is more pronounced when services are liberalized. Our results remain robust to any change in the measure of service protection, the measure of skill-upgrading and when we control for the endogeneity of GVCs.
Journal: Applied Economics
Pages: 1342-1360
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1830938
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1830938
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Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1342-1360
Template-Type: ReDIF-Article 1.0
Author-Name: Suqin Ge
Author-X-Name-First: Suqin
Author-X-Name-Last: Ge
Author-Name: Andrea Moro
Author-X-Name-First: Andrea
Author-X-Name-Last: Moro
Author-Name: Beibei Zhu
Author-X-Name-First: Beibei
Author-X-Name-Last: Zhu
Title: Testing for asymmetric employer learning and statistical discrimination
Abstract:
We test if firms statistically discriminate workers based on race when employer learning is asymmetric. Using data from the NLSY79, we find evidence of asymmetric employer learning. In addition, employers statistically discriminate against non-college-educated black workers at time of hiring. We also find that employers directly observe most of the productivity of college graduates at hiring and learn very little over time about these workers.
Journal: Applied Economics
Pages: 1361-1377
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1830939
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1830939
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Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1361-1377
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Thiem
Author-X-Name-First: Stefan
Author-X-Name-Last: Thiem
Title: Spillover Effects in Contests with Heterogeneous Players - Evidence from European Football
Abstract:
This paper analyzes spillover effects from previous matches against the future champion of a league. Using data from 78,264 European football games, the empirical results from a matching method show that favourites in the current match gain significantly fewer points after a match against the future league champion. By contrast, underdogs benefit from such a match, as they gain significantly more points. By considering shadow effects in the analysis, these results suggest that favourites put more effort into the match against the future champion and lower their effort level in the next match, which explains the negative spillover effects. As there are no significant shadow effects for underdogs, the positive spillover effects might be caused by positive ‘learning-by-doing’ effects. A subsequent logit regression using betting odds as control variables confirms the existence of the observed spillover effects.
Journal: Applied Economics
Pages: 1378-1394
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1830940
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1830940
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Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1378-1394
Template-Type: ReDIF-Article 1.0
Author-Name: Salah A. Nusair
Author-X-Name-First: Salah A.
Author-X-Name-Last: Nusair
Author-Name: Dennis O. Olson
Author-X-Name-First: Dennis O.
Author-X-Name-Last: Olson
Title: Testing Wagner’s law versus the Keynesian hypothesis for GCC countries
Abstract:
This paper examines the relationship between real GDP and government spending for the six Gulf Cooperation Council (GCC) countries. Linear Granger causality tests in the time and frequency domains provide moderate support for Wagner’s law in four countries and weak support for the Keynesian model in two countries. In contrast, asymmetric nonlinear causality tests in the frequency domain support Wagner’s law in five countries, while some form of the Keynesian hypothesis is valid in all six GCC countries. Our results illustrate the importance of using nonlinear, asymmetric models to examine causal relationships.
Journal: Applied Economics
Pages: 1395-1417
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1832196
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1832196
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Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1395-1417
Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Cerulli
Author-X-Name-First: Giovanni
Author-X-Name-Last: Cerulli
Author-Name: Marco Ventura
Author-X-Name-First: Marco
Author-X-Name-Last: Ventura
Title: A dose–response approach to evaluate the effects of different levels of partial credit guarantees
Abstract:
Credit Guarantee Schemes (CGSs) issue partial guarantees to cope with financial instability and moral hazard problems on the part of the borrowing firms. Our paper focuses on the magnitude of partial coverage ratios, proposing and applying a dose–response model to identify both the minimum (below which guarantees are not effective) and optimal (the one maximizing the guarantees effectiveness) magnitude. Consistently with theoretical prescriptions, an inverted U-shaped relationship is found for a sample of Italian firms, with the maximum of the effectiveness around 70% and no effects below 55% and above 80%. Our approach and findings seem useful to support policy makers in fine-tuning CGS policy.
Journal: Applied Economics
Pages: 1418-1434
Issue: 12
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1834499
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1834499
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Handle: RePEc:taf:applec:v:53:y:2021:i:12:p:1418-1434
Template-Type: ReDIF-Article 1.0
Author-Name: Yann Braouezec
Author-X-Name-First: Yann
Author-X-Name-Last: Braouezec
Author-Name: Keyvan Kiani
Author-X-Name-First: Keyvan
Author-X-Name-Last: Kiani
Title: Target capital ratio and optimal channel(s) of adjustment: a simple model with empirical applications to European banks
Abstract:
Why do banks decide to reach their target capital ratio by selling assets and/or issuing new shares? To answer this question, we offer a simple framework in which each channel of adjustment is costly; underwriting and dilution costs for equity issuance, profit reduction and price impact for asset sale. We make the assumption that the aim of the bank is to minimize the total adjustment cost subject to the target’s constraint and we derive its optimal strategy. The solution is formulated in terms of two critical thresholds for which we give an explicit formula. We then compare our model’s predictions to the decisions taken by two European systemic banks (Deutsche Bank and UniCredit) to issue new shares in 2017 and for which the target ratio was publicly disclosed. We show that the predictions of the model are consistent with the observed decisions.
Journal: Applied Economics
Pages: 1435-1462
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1820442
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1820442
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Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1435-1462
Template-Type: ReDIF-Article 1.0
Author-Name: Alin Marius Andrieș
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieș
Author-Name: Nicu Sprincean
Author-X-Name-First: Nicu
Author-X-Name-Last: Sprincean
Title: Cyclical behaviour of systemic risk in the banking sector
Abstract:
This paper examines cyclical behaviour of banks’ systemic risk contribution and exposure. Using a panel of 787 banks from country members of the Organization for Economic Co-operation and Development and the European Union covering the period 2000–2017, we document that both systemic risk contribution and exposure are positively related to business cycle. Systemic risk starts to accumulate in the financial sector during periods of boom when the output gap is positive. Furthermore, during periods of robust economic growth, the level of credit tends to increase dramatically, going hand in hand with asset and property prices developments. We also find that contribution and exposure to system-wide distress move procyclically during credit and house cycles, meaning that during upturns in credit and house cycles bank interconnectedness increases, but tend to fall during the downturns. However, individual risk of the banks evolves countercyclically during business and financial cycles.
Journal: Applied Economics
Pages: 1463-1497
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1822511
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1822511
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Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1463-1497
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Pilipiec
Author-X-Name-First: Patrick
Author-X-Name-Last: Pilipiec
Author-Name: Wim Groot
Author-X-Name-First: Wim
Author-X-Name-Last: Groot
Author-Name: Milena Pavlova
Author-X-Name-First: Milena
Author-X-Name-Last: Pavlova
Title: The causal influence of increasing the statutory retirement age on job satisfaction among older workers in the Netherlands
Abstract:
Since 2013, the Netherlands has gradually increased the statutory retirement age. We use a regression discontinuity design to analyse the effect of the increase in retirement age on overall job satisfaction and satisfaction with the organisation’s personnel policy. Date of birth was used as a sharp cut-off to assign workers to the intervention or comparison group. The increase had no effect on overall job satisfaction. An effect was only observed for satisfaction with the personnel policy in one of the groups analysed. Further, there was only a significant effect if the statutory retirement age was increased by seven months, but this relation was no longer significant when controlling for the difference in days between the date of birth and the cut-off.
Journal: Applied Economics
Pages: 1498-1527
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1827136
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1827136
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Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1498-1527
Template-Type: ReDIF-Article 1.0
Author-Name: Refk Selmi
Author-X-Name-First: Refk
Author-X-Name-Last: Selmi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Youssef Errami
Author-X-Name-First: Youssef
Author-X-Name-Last: Errami
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Is COVID-19 Related Anxiety an Accelerator for Responsible and Sustainable Investing ? A Sentiment Analysis
Abstract:
The excessive volatility generated by the COVID-19 pandemic highlights that environmental and social issues are potential elements that businesses and governments must manage effectively and swiftly. This study seeks to test whether the rising anxiety over this pandemic has affected the attitudes and choices towards environmentally and socially responsible investing. To this end, we first use machine learning tools to examine tweets related to this unprecedented and wild shock. Second, we compare the impact of these sentiments on the stock performance of companies from the S&P500 that meet environmental and social sustainability criteria for three COVID-19 phases with varying levels of anxiety, which we label incubation, fever and the increasing risk of second wave pandemic (in the absence of vaccine). Our findings reveal that the increasing uncertainty and worries over COVID-19 and its consequences has not distracted investors’ attention away from environmental and social issues, but companies with responsible strategies on environmental issues that specifically address climate responsibility are likely to be more responsive to sentiments at the current situation of emergency.
Journal: Applied Economics
Pages: 1528-1539
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1834501
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1834501
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Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1528-1539
Template-Type: ReDIF-Article 1.0
Author-Name: Sanna Huikari
Author-X-Name-First: Sanna
Author-X-Name-Last: Huikari
Author-Name: Marko Korhonen
Author-X-Name-First: Marko
Author-X-Name-Last: Korhonen
Title: Unemployment, global economic crises and suicides: evidence from 21 OECD countries
Abstract:
This study explores age- and gender-specific suicide mortality due to unemployment and economic crises, for 21 OECD countries over the period 1960 to 2011. The findings indicate that a higher unemployment rate leads to an increase in suicides in almost all age groups. Further, using dataset on economic/financial crisis events, results show that, in general, these crises increase suicide rates. However, the evidence also shows that economic crises have no effect on those in the 45 to 64 years age group in terms of suicides. Further, we assessed whether suicide mortality can be attributed to a ‘crisis effect’ beyond that of unemployment. For males, we found a significant joint effect between crises and unemployment. Finally, we investigated the possible nonlinear threshold response of suicides to unemployment. We found that suicides among young males (<45 years) are due to marked increases in unemployment in association with global economic crises.
Journal: Applied Economics
Pages: 1540-1550
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1838430
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1838430
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Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1540-1550
Template-Type: ReDIF-Article 1.0
Author-Name: Valentine Fays
Author-X-Name-First: Valentine
Author-X-Name-Last: Fays
Author-Name: Benoît Mahy
Author-X-Name-First: Benoît
Author-X-Name-Last: Mahy
Author-Name: François Rycx
Author-X-Name-First: François
Author-X-Name-Last: Rycx
Author-Name: Mélanie Volral
Author-X-Name-First: Mélanie
Author-X-Name-Last: Volral
Title: Wage discrimination based on the country of birth: do tenure and product market competition matter?
Abstract:
Using a merged employer-employee panel dataset of more than 13,000 firms relative to the Belgian private sector for the 1999–2010 period, this paper aims to quantify wage discrimination against migrant workers based on their countries of birth, with workers’ tenure and firm product market competition as moderating variables. To do so, we specify a wage-setting equation that includes a direct measure of worker productivity. We control for a wide range of worker and firm characteristics, as well as time-invariant unobserved heterogeneity in firms and potential endogeneity in the composition of the workforce. Our results show large disparities in wage discrimination against foreign-born migrants depending on their countries of birth. They also suggest that wage discrimination against migrants vanishes as their firm-specific labour market experience (i.e. tenure) increases and tends to disappear in highly competitive product market situations.
Journal: Applied Economics
Pages: 1551-1571
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1838431
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1838431
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Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1551-1571
Template-Type: ReDIF-Article 1.0
Author-Name: Miguel Angel Martin-Valmayor
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Martin-Valmayor
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Manuel Monge Moreno
Author-X-Name-First: Manuel
Author-X-Name-Last: Monge Moreno
Author-Name: Luis Madariaga Becerra
Author-X-Name-First: Luis
Author-X-Name-Last: Madariaga Becerra
Title: Mean reversion in monetary aggregates in Chile
Abstract:
In this paper we examine the statistical properties of the monetary aggregates in Chile in order to know if the time series display mean reverting behaviour. For this purpose, we use techniques based on fractional integration. Monthly data of various Chilean monetary aggregates from January 1986 until August 2019 are used, and the results indicate very weak evidence of mean reversion. In fact, this property is only found in the case of the currency on circulation and M1 for some of the series examined; however, for M2 and M3 the results clearly show high persistence with orders of integration substantially higher than 1. Thus, shocks are expected to have a permanent nature in these cases. Another remarkable feature observed in the results is that the level of persistence in the series seems to grow with the amount of the monetary aggregate. In a multivariate context, performing a FCVAR model, evidence of cointegration is found among the monetary aggregates, finding a long run equilibrium relationship between them.
Journal: Applied Economics
Pages: 1572-1584
Issue: 13
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1838433
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1838433
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Handle: RePEc:taf:applec:v:53:y:2021:i:13:p:1572-1584
Template-Type: ReDIF-Article 1.0
Author-Name: C Waddoups
Author-X-Name-First: C
Author-X-Name-Last: Waddoups
Title: The gap in employer-paid job training between non-Hispanic and Hispanic white workers
Abstract:
The study assesses the size and nature of the gap in incidence of employer-paid job training between Hispanic and non-Hispanic white workers. Using data on employer-paid training from the Survey of Income and Program Participation, Oaxaca/Blinder decompositions are estimated and analysed. The study finds that non-Hispanic white workers are more likely to engage in training than their Hispanic white counterparts, and that about half the difference in training incidence can be explained by average differences in educational attainment between the two groups. Besides educational attainment, being foreign born is another strong predictor of low training probabilities. The inability to explain a substantial part of the training gap suggests an economy-wide problem with human capital discrimination that leads to less job training among Hispanic whites compared to their non-Hispanic white counterparts. Policy efforts to increase formal education and reduce discriminatory behaviour both are consistent with the empirical findings.
Journal: Applied Economics
Pages: 1585-1597
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1840506
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1840506
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Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1585-1597
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Foote
Author-X-Name-First: Andrew
Author-X-Name-Last: Foote
Author-Name: Mark J. Kutzbach
Author-X-Name-First: Mark J.
Author-X-Name-Last: Kutzbach
Author-Name: Lars Vilhuber
Author-X-Name-First: Lars
Author-X-Name-Last: Vilhuber
Title: Recalculating ... : How Uncertainty in Local Labour Market Definitions Affects Empirical Findings
Abstract:
This paper evaluates the use of commuting zones as a local labour market definition. We revisit the seminal paper by Tolbert and Sizer and demonstrate the sensitivity of definitions to two features of the methodology: a cluster dissimilarity cut-off, or the count of clusters, and uncertainty in the input data. We show how these features impact empirical estimates using a standard application of commuting zones and an example from related literature. We conclude with advice to researchers on how to demonstrate the robustness of empirical findings to uncertainty in the definition of commuting zones.
Journal: Applied Economics
Pages: 1598-1612
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841083
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841083
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Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1598-1612
Template-Type: ReDIF-Article 1.0
Author-Name: Jiyoung Kim
Author-X-Name-First: Jiyoung
Author-X-Name-Last: Kim
Author-Name: Satoshi Nakano
Author-X-Name-First: Satoshi
Author-X-Name-Last: Nakano
Author-Name: Kazuhiko Nishimura
Author-X-Name-First: Kazuhiko
Author-X-Name-Last: Nishimura
Title: The role of ICT productivity in Korea-Japan multifactor CES productions and trades
Abstract:
In this paper, we examine the economic impact of information and communication technology (ICT) innovation, within a general equilibrium framework of empirically estimated constant-elasticity-of-substitution (CES) production frontiers. Such innovation generates not only productivity growth and price changes, but it also triggers changes in the economic structure of production and trade patterns. This process ostensibly increases the social welfare. To study the impact of ICT innovation, we construct a bilateral general-equilibrium model that spans 350 commodities and sectors of trade between Japan and the Republic of Korea. We estimate all CES parameters from published statistics, including linked input–output tables and Comtrade databases. A small exogenous productivity shock in the ICT is examined in terms of potential price reductions of all commodities in both countries.
Journal: Applied Economics
Pages: 1613-1627
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841084
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841084
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Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1613-1627
Template-Type: ReDIF-Article 1.0
Author-Name: Julien Cadot
Author-X-Name-First: Julien
Author-X-Name-Last: Cadot
Author-Name: Amir Rezaee
Author-X-Name-First: Amir
Author-X-Name-Last: Rezaee
Author-Name: Rebecca Benaïs Chemama
Author-X-Name-First: Rebecca
Author-X-Name-Last: Benaïs Chemama
Title: Earnings management and derivatives reporting: evidence from the adoption of IFRS standards in Europe
Abstract:
Although the new IFRS standards are considered an improvement for financial transparency, derivatives reporting remains subject to criticism by professional observers due to its complexity. Indeed, derivatives reporting could easily be used for earnings management. In this article, we analyse half a dozen earnings management proxies before and after the mandatory adoption of a battery of IFRS standards in 2013 and 2014 by European firms. Among others, IFRS 13 and IFRS 11 featured impactful requirements for the financial reporting of listed companies. Our results show that following the adoption of these standards, earnings management has faded except for firms using derivatives. These results suggest that the 2013–2014 IFRS standards package has improved the accounting quality of European-listed firms but that the flexibility and lack of guidance in the new standards regarding derivatives reporting are used by managers to manage earnings.
Journal: Applied Economics
Pages: 1628-1637
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841085
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841085
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Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1628-1637
Template-Type: ReDIF-Article 1.0
Author-Name: Harry Anthony Patrinos
Author-X-Name-First: Harry Anthony
Author-X-Name-Last: Patrinos
Author-Name: George Psacharopoulos
Author-X-Name-First: George
Author-X-Name-Last: Psacharopoulos
Author-Name: Aysit Tansel
Author-X-Name-First: Aysit
Author-X-Name-Last: Tansel
Title: Private and Social Returns to Investment in Education: the Case of Turkey with Alternative Methods
Abstract:
This paper estimates private and social returns to investment in education in Turkey, using the 2017 Household Labour Force Survey (latest available at the time of writing) and alternative methodologies. The analysis uses the 1997 education reform of increasing compulsory education by three years as an instrument. This results in a private rate of return on the order of 16% for higher education and a social return of 10%. Using the number of children younger than age 15 in the household as an exclusion restriction, sample selection correction is applied, and it shows that the returns to education for females are higher than those for males. Contrary to many findings in other countries, private returns to those working in the public sector are higher than those in the private sector, and private returns to those who followed the vocational track in secondary education are higher than those in the general academic track. The paper discusses the policy implications of the findings.
Journal: Applied Economics
Pages: 1638-1658
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841086
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Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1638-1658
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Cellini
Author-X-Name-First: Roberto
Author-X-Name-Last: Cellini
Author-Name: Tiziana Cuccia
Author-X-Name-First: Tiziana
Author-X-Name-Last: Cuccia
Title: Female workforce participation and household expenditure for culture and recreation: macroeconomic evidence from the Italian regions
Abstract:
This study evaluates the effects of labour force participation on the share of private expenditure for cultural and recreational goods and services. We consider a panel of macroeconomic data, coming from the 20 Italian regions observed over the period 1995–2015. We document that female participation rate positively and significantly affects the share of household consumption devoted to culture and entertainment. The effect of male labour participation rate appears to be less clear-cut. We propose some theoretical and empirical considerations, to investigate the bases and the policy implications of such gender asymmetry.
Journal: Applied Economics
Pages: 1659-1671
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841087
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Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1659-1671
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao-Li Gong
Author-X-Name-First: Xiao-Li
Author-X-Name-Last: Gong
Author-Name: Xiong Xiong
Author-X-Name-First: Xiong
Author-X-Name-Last: Xiong
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Title: Shadow banking, monetary policy and systemic risk
Abstract:
This article aims to analyse the dissimilation effect of shadow banking on monetary policy and to judge the cyclical characteristics of shadow banking. Further, we analyse the dynamic response of shadow banking to financial risk shocks and regulatory shocks, and examine the influence of shadow banking on the transmission path of systemic risks, so as to provide theoretical bases for financial supply-side structural reforms in the context of high-quality development. To this end, this article constructs the multi-sector DSGE model that includes the shadow banking sector and the commercial banking sector that subjects to multiple credit regulatory constraints. And then the five-variable VAR model is used to conduct empirical tests. Empirical research has found that Chinese-style shadow banking exhibits countercyclical characteristics, and the existence of shadow banking reduces the transmission effectiveness of credit channel. Numerical simulation analysis finds that positive interest rate shocks would trigger the expansion of shadow banks and increase leverage, while reducing the credit leverage of commercial banks. Technological impacts such as financial technology have reduced loan premiums and have played a role in multi-channel evacuation of risk accumulation from the perspective of inclusive finance.
Journal: Applied Economics
Pages: 1672-1693
Issue: 14
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841088
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Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1672-1693
Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: The non-parametric analysis of wage distortion based on ability in the Chinese labour market
Abstract:
This study analyzes wage distortion based on ability in the Chinese labour market using a non-parametric approach. We first propose a signalling model by adding regressive wage incentives to describe the non-competitive Chinese labour market. Then, we show that the model primitives are non-parametrically identified and estimable using recently proposed measurement-error methodologies. Using a dataset from the China Health and Nutrition Survey, we provide empirical evidence that wages are mainly lower for a large number of workers compared with their ability levels, especially for female workers with medium ability levels.
Journal: Applied Economics
Pages: 1694-1715
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841883
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Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1694-1715
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Eric Mulholland
Author-X-Name-First: Sean Eric
Author-X-Name-Last: Mulholland
Title: Covid-19 prevalence and empty college seats
Abstract:
Using the National Association for College Admission Counselling’s annual list of colleges with open seats and Covid-19 cases and deaths at the county level, this paper provides a first look at how Covid-19 has altered enrolment at four-year colleges. I find that a one standard deviation increase in deaths per 100,000 is associated with a 61% increase in the probability that a school reports available seats, housing, and aid for first-year students. For a one standard deviation increase in cases per 100,000, schools are 53% more likely to report openings. For a one standard deviation increase in the growth rate of deaths and cases, schools are 45 and 56%, respectively, more likely to report openings. These openings are not driven by the fact that many Covid-19 hot spots in March and April of 2020 are also home to schools with higher tuition and fees, a high share of out-of-state or international students, and more progressive political leanings.
Journal: Applied Economics
Pages: 1716-1728
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1841884
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1841884
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Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1716-1728
Template-Type: ReDIF-Article 1.0
Author-Name: Peng Li
Author-X-Name-First: Peng
Author-X-Name-Last: Li
Author-Name: Xiangrong Li
Author-X-Name-First: Xiangrong
Author-X-Name-Last: Li
Author-Name: Gonglin Yuan
Author-X-Name-First: Gonglin
Author-X-Name-Last: Yuan
Author-Name: Maojun Zhang
Author-X-Name-First: Maojun
Author-X-Name-Last: Zhang
Title: A numerical optimization pesudo-algorithm for two-player zero-sum stochastic games
Abstract:
A two-player, zero-sum stochastic game with two variables $$(z,v)$$(z,v) can be transformed into the coupled control PDEs by a transition probability matrix of the Markov chain. There exist two control variables $${\varsigma _i}$$ςi and two tensity rates $${\mu _i}$$μi ($$i = 1,2$$i=1,2) after the transformation that should be solved for. Yuan and Li (Computational Economics, 2018) give a numerical algorithm by the first-order necessary condition, which overcomes several drawbacks of the normal algorithm and describe several numerical experiments demonstrating the performance of their method. However, their method exhibits at least one shortcoming, which is that the final value of the control variables $${\varsigma _i}$$ςi ($$i = 1,2$$i=1,2) may exceed the definition domain. This situation means that the $${\varsigma _i}$$ςi ($$i = 1,2$$i=1,2) is infeasible and unacceptable. This paper presents a new technique to avoid that situation, and an optimization pseudo-algorithm is designed using the following steps: (i) starting from the given initial points $$(\varsigma _i^0,\mu _i^0),$$(ςi0,μi0), an active-set algorithm is proposed; (ii) the limited memory update technique is used in the algorithm to obtain fast convergence and low storage; (iii) global convergence is established under suitable conditions; and (iv) numerical results are reported to demonstrate that the new algorithm is competitive with the normal algorithm.
Journal: Applied Economics
Pages: 1729-1742
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1845294
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Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1729-1742
Template-Type: ReDIF-Article 1.0
Author-Name: Jiaochen Liang
Author-X-Name-First: Jiaochen
Author-X-Name-Last: Liang
Author-Name: Qin Fan
Author-X-Name-First: Qin
Author-X-Name-Last: Fan
Author-Name: Yong Hu
Author-X-Name-First: Yong
Author-X-Name-Last: Hu
Title: Dynamic relationships between commodity prices and local housing market: evidence for linear and nonlinear causality
Abstract:
This research examines the relationship between agricultural commodity prices and the local housing market. Previous literature focuses on the unidirectional impacts from commodity prices to the local economy, but we propose that in some cases local asset markets can also influence commodity prices due to the agglomeration of commodity productions and the linkages of financial markets, and thus the causalities between them can be bilateral. In addition, according to a new regional economic model that we develop about local asset market and commodity price shocks, we further predict the causalities between the commodity prices and the local house price are nonlinear. We test these hypotheses using data of the major agricultural commodities of an agriculturally focused region – California Central Valley area. The results are consistent with our expectations: there is no evidence for linear causalities between the price returns of these agricultural commodities and the local housing market, but the nonlinear Granger causalities between them are significant.
Journal: Applied Economics
Pages: 1743-1755
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1845295
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Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1743-1755
Template-Type: ReDIF-Article 1.0
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Eduardo Dacillo Roca
Author-X-Name-First: Eduardo Dacillo
Author-X-Name-Last: Roca
Title: Weathering financial crisis in China: the role of global market integration
Abstract:
We test the hypothesis that the integration of China into the global financial system, as a consequence of domestic market reforms, reduced the effectiveness of intervention efforts during the stock market crises. Using an event study methodology in tandem with the DCC GARCH and Markov Regime Switching models, we investigate whether the interventions were able to address the decline in market returns and volatility during the 2008 and 2015 stock market collapses. Results show that the 2015 measures were ineffective compared to the 2008 ones and that the increasing global integration of the Chinese market played a significant role in their failure. This study is the first of its kind and the results have important implications for policymakers, given the vital position of China in the international economy.
Journal: Applied Economics
Pages: 1756-1776
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1849535
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1849535
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Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1756-1776
Template-Type: ReDIF-Article 1.0
Author-Name: Malissa Davis
Author-X-Name-First: Malissa
Author-X-Name-Last: Davis
Author-Name: Richard Cebula
Author-X-Name-First: Richard
Author-X-Name-Last: Cebula
Author-Name: Robert Boylan
Author-X-Name-First: Robert
Author-X-Name-Last: Boylan
Title: A Further Inquiry into Factors that Influence Federal Personal Income Tax Evasion in the U.S.
Abstract:
This study identifies factors that may have influenced the degree of aggregate federal personal income tax evasion in the U.S. An established tax evasion model is updated to include the most recent data available and augmented with the addition of heretofore neglected or overlooked explanatory variables. To measure the degree of aggregate tax evasion behaviour, we adopt the percentage of personal taxable income that was unreported to the IRS by using official time series data for the years 1980 through 2016. We incorporate previously resilient variables such as the federal tax rate, the unemployment rate, the audit rate of filed returns by IRS personnel, the penalty interest rate on detected tax evasion, and a measure of real income growth into our study. Each has a statistically significant impact on the degree of aggregate federal personal income tax evasion, consistent with prior literature. As an extension of the literature, we find compelling evidence that age, gender, the average effective state income tax rate, and the percentages of federal personal income tax returns that include Schedule C and/or Schedule A are additional variables that have been largely ignored in previous related studies but appear to have impacted tax evasion behaviour.
Journal: Applied Economics
Pages: 1777-1787
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1851648
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Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1777-1787
Template-Type: ReDIF-Article 1.0
Author-Name: Leo de Haan
Author-X-Name-First: Leo
Author-X-Name-Last: de Haan
Author-Name: Sarah Holton
Author-X-Name-First: Sarah
Author-X-Name-Last: Holton
Author-Name: Jan Willem van den End
Author-X-Name-First: Jan Willem
Author-X-Name-Last: van den End
Title: The impact of central bank liquidity support on banks’ sovereign exposures
Abstract:
We empirically analyse the relationship between longer term central bank liquidity support and banks’ exposures to governments, using difference-in-differences panel regressions and propensity score matching on a large sample of banks in the euro area. The research question is whether the liquidity operations, which were introduced to prevent disorderly deleveraging, can also be linked to unintended changes in banks’ asset allocations, in particular to carry trades in government bonds. The results show that unconditional and conditional refinancing operations have a different effect on banks’ government exposures. Unconditional longer-term refinancing operations went together with more carry trades in stressed countries, i.e. banks borrowing more while increasing their holdings of government bonds. In contrast, refinancing operations that were conditional on banks’ lending were not associated with such carry trades, highlighting the benefits of conditionality attached to long-term refinancing operations.
Journal: Applied Economics
Pages: 1788-1806
Issue: 15
Volume: 53
Year: 2021
Month: 03
X-DOI: 10.1080/00036846.2020.1853667
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Handle: RePEc:taf:applec:v:53:y:2021:i:15:p:1788-1806
Template-Type: ReDIF-Article 1.0
Author-Name: Jaana Rahko
Author-X-Name-First: Jaana
Author-X-Name-Last: Rahko
Title: R&D internationalization and firm productivity. Does the host country matter?
Abstract:
The prior literature has established that the internationalization of corporate R&D is motivated by access to new markets and technological knowledge. However, the empirical literature has overlooked whether the market and technological characteristics of R&D host countries influence the firm-level productivity gains from international R&D. This study empirically examines whether international R&D activities affect the productivity of European multinational firms. Estimating an R&D augmented production function shows that the output elasticity of R&D depends positively on the share of international R&D activities. The analysis further shows that the improvements are associated only with offshore R&D in host countries that have experienced fast economic growth or that are technologically stronger than firms’ home country.
Journal: Applied Economics
Pages: 1807-1825
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1853668
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Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1807-1825
Template-Type: ReDIF-Article 1.0
Author-Name: Veikkopekka Silvasti
Author-X-Name-First: Veikkopekka
Author-X-Name-Last: Silvasti
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: Janne Äijö
Author-X-Name-First: Janne
Author-X-Name-Last: Äijö
Title: Is smart beta investing profitable? evidence from the Nordic stock market
Abstract:
This study examines the profitability of the mixing and integrating approach for constructing multi-factor smart beta portfolios. While most studies explore this issue in a U.S. market setting, this is the first study that exclusively focus on the Nordic equity market, which exhibits some unique and stylized features as recently highlighted in the literature. Our findings indicate first strong evidence for return variations for sorting stocks on value-, momentum-, and ex-ante beta-signals. Surprisingly, variations in payoffs are not only small stock phenomena in the Nordic equity markets. While the current literature does not yet agree on a consensus, our study supports the literature documenting the superiority of the integrating approach. Our results challenge the efficient market hypothesis in a market environment offering a high-level of information-flow-efficiency.
Journal: Applied Economics
Pages: 1826-1839
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1853669
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1853669
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Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1826-1839
Template-Type: ReDIF-Article 1.0
Author-Name: J. Stephen Ferris
Author-X-Name-First: J. Stephen
Author-X-Name-Last: Ferris
Author-Name: Marcel-Cristian Voia
Author-X-Name-First: Marcel-Cristian
Author-X-Name-Last: Voia
Title: Elections, economic outcomes and policy choices in Canada: 1870 – 2015
Abstract:
In this paper we examine the relationship between economic and electoral outcomes in Canada since Confederation (1867) and the role that economic policy has played in influencing this relationship. The results are consistent with voter concern for the overall performance of the economy in the incumbent’s governing term – the average growth rate of per capita GDP and average unemployment rate – while rejecting the presence of a political business cycle. Evidence of an effect of performance on the stability of the political party system (as measured by party vote volatility) is even stronger. The results also suggest that economic policy has only indirect effects on election outcomes, the most direct being the destabilizing influence of tax increases on party structure. The data also are consistent with the use of policy for countercyclical stability (primarily through spending and deficits), fiscal response to voter turnout, the growth of both spending and deficits under larger governing majorities and compliant monetary response to fiscal deficits.
Journal: Applied Economics
Pages: 1840-1855
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1853670
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1853670
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Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1840-1855
Template-Type: ReDIF-Article 1.0
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Title: Unkind roll of the dice: drivers of lottery crimes in the United States
Abstract:
Using data on U.S. states, this paper studies the factors driving lottery-related crimes, focusing on spillovers from other gambling and corruption. Although state-sponsored lotteries have become quite popular in the United States in recent years, formal research on their causes is rather limited. Results show corruption to increase lottery-related crimes, while higher lottery prize money and greater economic prosperity have the opposite effect. We find crowding out from electronic gaming machines. However, competition from Native American casinos or casino gambling crimes does not significantly impact lottery crimes.
Journal: Applied Economics
Pages: 1856-1866
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854446
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854446
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Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1856-1866
Template-Type: ReDIF-Article 1.0
Author-Name: Felipe Garcia Ribeiro
Author-X-Name-First: Felipe Garcia
Author-X-Name-Last: Ribeiro
Author-Name: André Portela Souza
Author-X-Name-First: André Portela
Author-X-Name-Last: Souza
Author-Name: André Carraro
Author-X-Name-First: André
Author-X-Name-Last: Carraro
Title: Rural electrification and agricultural family time allocation decisions
Abstract:
This article investigates the effects of electricity on time allocation in labour market and subsistence activities among adults, adolescents and children living in households in Brazilian rural areas. It explores the eligibility rule of a large-scale public policy programme on access to electricity in rural areas as an instrumental variable. Using the microdata from 2000 to 2010 Demographic Census, it finds that the access to electricity increases the time devoted to subsistence and decreases the time spent in the labour market among all members of agricultural families. These effects are stronger among female individuals. Also, it shows an increase in school attendance among children and male adolescents. There is no schooling effect among female adolescents. Finally, placebo exercises for urban areas suggest that instrumental variable is indeed capturing the effect of the program.
Journal: Applied Economics
Pages: 1867-1885
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854447
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854447
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Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1867-1885
Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Farrell
Author-X-Name-First: Lisa
Author-X-Name-Last: Farrell
Author-Name: Jane M. Fry
Author-X-Name-First: Jane M.
Author-X-Name-Last: Fry
Author-Name: Tim R.L. Fry
Author-X-Name-First: Tim R.L.
Author-X-Name-Last: Fry
Title: Who trusts the bank of England and high street banks in Britain?
Abstract:
Following the global financial crisis (GFC) of 2008 there was recognition that client trust in financial institutions had been damaged. While institutional trust has become an accepted barometer, less is known about who trusts the banking and finance sector. This paper investigates the individual characteristics associated with trust for the Bank of England (BoE) and high street banks in Britain. Importantly, we consider this question in the context of a point in time, namely 2014. This is an important case study as it is some years after the initial impact of the GFC yet prior to the referendum vote for Britain to exit the European Union (Brexit) and coincides with the Scottish referendum. Our results suggest that the characteristics associated with trust in the BoE differ from those associated with trust in high street banks and other financial institutions. Specifically, older people, more educated people and people residing in London show higher levels of trust in the BoE. In terms of trust in the sector overall, we also find that positive perceptions on the availability of credit are correlated with higher levels of trust.
Journal: Applied Economics
Pages: 1886-1898
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854448
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854448
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Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1886-1898
Template-Type: ReDIF-Article 1.0
Author-Name: Hideaki Sakawa
Author-X-Name-First: Hideaki
Author-X-Name-Last: Sakawa
Author-Name: Naoki Watanabel
Author-X-Name-First: Naoki
Author-X-Name-Last: Watanabel
Author-Name: Geeta Duppati
Author-X-Name-First: Geeta
Author-X-Name-Last: Duppati
Author-Name: Robert Faff
Author-X-Name-First: Robert
Author-X-Name-Last: Faff
Title: Institutional ownership and corporate risk-taking in Japanese listed firms
Abstract:
Agency theory predicts that institutional ownership plays an important role in monitoring corporate risk-taking. This study examines this ownership-risk taking linkage in Japan over the period 2007 and 2019. We proxy risk through measures of idiosyncratic risk, total risk, and market beta. We show that (relational) foreign institutional shareholdings (do not) induce corporate risk-taking, thereby mitigating (preserving) the managerial ‘quiet life’ in Japanese corporations. Using 2SLS analysis, the roles of institutional shareholders are robust to endogeneity concerns. Finally, we also confirm robustness using alternative accounting-based risk proxies such as the standard deviation of Tobin’s Q and ROA. Our study implies that the monitoring of institutional shareholders is important in Japanese corporations whose top executives might be prone to seek a ‘quiet life’.
Journal: Applied Economics
Pages: 1899-1914
Issue: 16
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854450
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854450
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Handle: RePEc:taf:applec:v:53:y:2021:i:16:p:1899-1914
Template-Type: ReDIF-Article 1.0
Author-Name: Saejoon Kim
Author-X-Name-First: Saejoon
Author-X-Name-Last: Kim
Title: Deep time series forecasting for enhanced index tracking
Abstract:
We consider the problem of enhanced index tracking whose objective is to construct a portfolio that maximizes the excess return and minimizes the tracking error between the returns of the tracking portfolio and a benchmark index. This problem is of considerable importance in the field of asset management as beating the market is known to be a notoriously difficult problem. We first identify the shortcomings inherent in the existing approaches to the problem, and then propose a general methodology to enhanced index tracking portfolio construction that moderates the degree of the shortcomings. Then, we present explicit construction schemes that utilize the latest advancements of the deep learning technology, and in particular, of long short-term memory networks that are designed to be efficacious for time series forecasting. Our proposed enhanced index tracking portfolios are empirically compared and contrasted with those of previously known proficient enhanced index tracking schemes over the benchmark of S&P 500. It is presented that our proposed portfolios outperform all other portfolios considered in this paper, and in particular, can beat the benchmark index substantially for a variety of cardinality constraint values tested.
Journal: Applied Economics
Pages: 1916-1934
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854451
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854451
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Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1916-1934
Template-Type: ReDIF-Article 1.0
Author-Name: Shailendra Kumar Rai
Author-X-Name-First: Shailendra
Author-X-Name-Last: Kumar Rai
Author-Name: Imlak Shaikh
Author-X-Name-First: Imlak
Author-X-Name-Last: Shaikh
Title: Does the performance of private investment in public equity firms behave differently in different life cycles?
Abstract:
Private investment in public equity firms (PIPE) is growing exponentially across the globe, and most of the theoretical and empirical works are accessible for the U.S. and European settings. There is a lack of studies in emerging markets like India. Our empirical research consists of 810 public equity (PE) transactions, out of which 761 are PIPE deals for the period 1998–2016. The study aims to investigate whether PIPE deals show different performance in different life cycles as distinct stages and operating targets. Under the hypothesis of information asymmetry and financial distress, we find that PIPE issuance significantly impacts sales growth, returns on equity, and operating performance. It is evident that the growth stage shows an adverse impact on future sales growth and profitability while it's encouraging for return on equity. Our findings based on the firm's life cycle show that maturity and stagnant stage reveal pronounced effects. Moreover, investor type and investment flow either from Indian-dedicated, foreign, and co-investment show a favourable impact on future profitability. One of the study's essential findings is that a firm in the growth stage needs more investment in the form of PIPE issuance, and it shows a significant impact on profitability and liquidity.
Journal: Applied Economics
Pages: 1935-1951
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854666
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854666
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Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1935-1951
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas W. Zuehlke
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Zuehlke
Title: Estimation of a type 2 Tobit model with generalized Box-Cox transformation
Abstract:
This article considers estimation of a Type 2 Tobit model with Bickel-Doksum transformation of the dependent variable of the regression equation. The basic idea is that while the transformed dependent variable is assumed to be normally distributed prior to any censoring, the inverse Bickel-Doksum transformation allows the underlying dependent variable to follow a wide variety of distributions having differing degrees of skewness and kurtosis. This adds flexibility to the shape of the distribution used to model quantitative variation in the dependent variable for the observed subsample. The log-likelihood function of this Generalized Type 2 Tobit model is globally concave conditional on the parameter of the Bickel-Doksum transformation and the correlation coefficient of the errors. A bivariate grid search over the space of these parameters may be used to find the neighbourhood of the global maximum to the log-likelihood function, provided one exists. The grid search process is important because: 1) the log-likelihood function of the Type 2 Tobit model, even with fixed functional form, often exhibits distinct local and global maxima and 2) use of consistent estimates as starting values is not sufficient to insure convergence to the global Maximum Likelihood Estimator.
Journal: Applied Economics
Pages: 1952-1975
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854667
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854667
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Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1952-1975
Template-Type: ReDIF-Article 1.0
Author-Name: Seungho Baek
Author-X-Name-First: Seungho
Author-X-Name-Last: Baek
Author-Name: Kwan Yong Lee
Author-X-Name-First: Kwan Yong
Author-X-Name-Last: Lee
Title: The risk transmission of COVID-19 in the US stock market
Abstract:
This paper studies volatility transmission effects between the US stock market and the COVID-19. Using BEKK-multivariate GARCH model, we find the US stock market volatility depends both its own past shocks and past COVID-19 shocks. Further, we find the US stock market volatility is positively affected by the death rate (bad news) while the recovered rate (good news) has a negative impact on the US stock market volatility. In addition, we find there is an asymmetric volatility impact of COVID-19 on the US stock market: the bad news affects the current US stock market much more than the good news. Our fixed effect panel regression results support the volatility spillover effects.
Journal: Applied Economics
Pages: 1976-1990
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854668
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854668
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Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1976-1990
Template-Type: ReDIF-Article 1.0
Author-Name: Tak Kuen Siu
Author-X-Name-First: Tak Kuen
Author-X-Name-Last: Siu
Title: The risks of cryptocurrencies with long memory in volatility, non-normality and behavioural insights
Abstract:
This paper aims to study the impacts of long memory in conditional volatility and conditional non-normality on market risks in Bitcoin and some other cryptocurrencies using an Autoregressive Fractionally Integrated GARCH model with non-normal innovations. Two tail-based risk metrics, namely Value at Risk (VaR) and Expected Shortfall (ES), are adopted to study the tail behaviour of market risks in Bitcoin and some other cryptocurrencies. Empirical investigations for the tail behaviour based on real exchange rate data of cryptocurrencies are conducted. An extreme-value-theory-based approach is used to study potential improvements in the estimation for the risk metrics under GARCH-type models. The possibility of explosive regimes in cryptocurrencies’ volatilities is examined using Markov-switching GARCH models.
Journal: Applied Economics
Pages: 1991-2014
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854669
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854669
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Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:1991-2014
Template-Type: ReDIF-Article 1.0
Author-Name: Liangcheng Wang
Author-X-Name-First: Liangcheng
Author-X-Name-Last: Wang
Author-Name: Yifan Liao
Author-X-Name-First: Yifan
Author-X-Name-Last: Liao
Author-Name: Yuye Ding
Author-X-Name-First: Yuye
Author-X-Name-Last: Ding
Author-Name: Tao Peng
Author-X-Name-First: Tao
Author-X-Name-Last: Peng
Title: The effect of customer concentration on supplier sustainable growth: evidence from China
Abstract:
Due to the worldwide pandemic and ‘Stay at Home’ order, many firms have experienced challenges for supply chain management. As the key parts of supply chain management, customer concentration may have a detrimental or beneficial effect on supplier sustainable growth. Using a large sample of listed firms in China, we explore the effect of customer concentration on supplier sustainable growth. This study documents that customer concentration is negatively related to supplier sustainable growth and the adverse effect is salient when a supplier is not under government protection. Further analyses demonstrate that the results are robust to alternative measures and controlling for endogeneity problems. Finally, the path analysis shows that the adverse effect is partially driven by lowering innovation and increasing administration costs in supplier firms, suggesting that innovation and administration costs play a mediating role in the relationship between customer concentration and supplier sustainable growth.
Journal: Applied Economics
Pages: 2015-2025
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854670
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854670
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Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:2015-2025
Template-Type: ReDIF-Article 1.0
Author-Name: Akanksha Jalan
Author-X-Name-First: Akanksha
Author-X-Name-Last: Jalan
Author-Name: Roman Matkovskyy
Author-X-Name-First: Roman
Author-X-Name-Last: Matkovskyy
Author-Name: Saqib Aziz
Author-X-Name-First: Saqib
Author-X-Name-Last: Aziz
Title: The Bitcoin options market: A first look at pricing and risk
Abstract:
This paper offers the first-ever look at Bitcoin options by investigating the wedge between optimum Bitcoin option prices based on classical option valuation models (Black-Scholes-Merton and the Heston-Nandi GARCH (1,1)) and actual premiums at which these options are trading. For this purpose, we use near-the-money call and put options traded on Deribit platform as on 27.01.2020, with the maturities ranging from January 31 to 25 September 2020. In addition, we analyse the risk inherent in Bitcoin options by calculating their Greeks and comparing them to those of traditional commodity options. Pricing results suggest slight overpricing and underpricing for Bitcoin call options with the strike $8,000 maturing on 30.01.2020 and 28.02.2020, respectively. We also find that the Bitcoin options provide much stable deltas over time compared to the other commodity options. This result implies higher insulation from undue price rises with the passage of time for investors in Bitcoin options. Our results are useful to regulators, investors and market managers in better understanding the nuances of the Bitcoin options market in addition to making more informed investment choices.
Journal: Applied Economics
Pages: 2026-2041
Issue: 17
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1854671
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854671
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Handle: RePEc:taf:applec:v:53:y:2021:i:17:p:2026-2041
Template-Type: ReDIF-Article 1.0
Author-Name: Elisabeth Paulet
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Paulet
Author-Name: Hareesh Mavoori
Author-X-Name-First: Hareesh
Author-X-Name-Last: Mavoori
Title: Cross-regional analysis of banking efficiency drivers
Abstract:
The banking industry plays a crucial role in any economy by providing diverse services aimed at enhancing economic growth. In recent decades, this sector has been transformed due to financial liberalization and new regulatory rules. Therefore, measuring the efficiency of banking institutions is critically important to identify the evolution of efficiency drivers for banks. Based on a sample of 90 individual banks from four different world regions (Europe, US, China, and India), this paper conducts data envelopment, stochastic frontier and anova analyses to measure cost efficiency over a 15-year period (2002–2016). While the overall liberalization of financial markets seems to induce a convergence among efficiency strategies privileging cost minimization to improve efficiency, the existence of state intervention in China and India nuances our results. State owned banks base their efficiency more on maximization of their potential revenue than on controlling costs. On the contrary, their private peers are more similar to Western peers.
Journal: Applied Economics
Pages: 2042-2065
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855312
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855312
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Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2042-2065
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Author-Name: Sharmistha Self
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Self
Title: Determinants of governance institutional quality in sub-saharan africa
Abstract:
The paper hypothesizes that the quality of institutions tends to evolve slowly and in a piecemeal nature over time. In this process policy is seen to be a mechanism through which this evolutionary process takes place. Policy influences intermediary variables, which in turn create opportunities for institutional innovation. There are two hypotheses derived from this analysis and tested empirically in the paper. It is hypothesized that improvements in institutional quality lead to increases in economic development (using two different measures). It is also hypothesized that changes in intermediary variables resulting from policy changes lead to improvements in institutional quality. These two hypotheses are tested using a panel data set made up of twenty-five countries in Africa. The results indicate that improvements in the quality of governance institutions do lead to improvements in economic development and that policies aimed at influencing intermediary variables lead to improvements in governance institutional quality.
Journal: Applied Economics
Pages: 2066-2079
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855314
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855314
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Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2066-2079
Template-Type: ReDIF-Article 1.0
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Author-Name: Biliang Luo
Author-X-Name-First: Biliang
Author-X-Name-Last: Luo
Title: Does land renting-out increase farmers’ subjective well-being? Evidence from rural China
Abstract:
Although the literature finds that renting out farmland can increase farmer’s income, whether lessors’ subjective well-being (SWB) increases or not has been under-analysed. We use data from the 2015 China Household Finance Survey to investigate the relationship between land rental transaction and farmers’ SWB. The results indicate that renting-out farmland does not increase farmers’ SWB if ignoring the types of transaction partners. Further analysis shows that lessors transacting with acquaintances have higher SWB than those transacting with non-acquaintances, and there is no difference in SWB between lessors transacting with non-acquaintances and farmers without land renting-out. This is because although lessors transacting with non-acquaintances obtain higher land rents, they lose the farmland that is the channel of investing in social capitals, which leads to less helps from kin, friends or neighbours when they encounter difficulties. Our analysis implies that lessors’ subjective welfare does not increase even if rural economy and rural residents are commonly regarded to be beneficial from land transfers.
Journal: Applied Economics
Pages: 2080-2092
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855315
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855315
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Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2080-2092
Template-Type: ReDIF-Article 1.0
Author-Name: Duan Liu
Author-X-Name-First: Duan
Author-X-Name-Last: Liu
Author-Name: Zixin Li
Author-X-Name-First: Zixin
Author-X-Name-Last: Li
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Title: The dynamic evolution of Chinese firms’ cash holdings and R&D: external financing facilitation channels
Abstract:
We study the dynamic evolution of Chinese firms’ cash holdings and their relationship with R&D investment using a sample of companies listed in the Chinese A-share market. After introducing the exogenous events of the 2008 financial crisis and China’s ‘four trillion yuan’ monetary stimulus plan (2008–2010), we analyse the dynamic evolution of the relationship between firms’ cash holdings and R&D investment in the development of external financing facilitation channel effects from the perspective of two typical financing facilitation channels, namely bank relationship and equity state-ownership. The main findings are as follows: (1) Firms with higher R&D investments tend to hold more cash reserves. This positive correlation is affected by the economic and monetary conditions, which are changing constantly. The sensitivity of cash holdings to R&D investment plays a crucial role in explaining the dynamic evolution of Chinese firms’ cash holdings. (2) During the 2008 financial crisis, bank relationship and equity state-ownership significantly mitigated the positive relationship between firms’ cash holdings and R&D investments, which means that external financing facilitation channels had greater and more significant effects. Moreover, those effects decreased after the completion of the ‘four trillion yuan’ monetary stimulus plan.
Journal: Applied Economics
Pages: 2093-2107
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855316
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855316
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Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2093-2107
Template-Type: ReDIF-Article 1.0
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Tenkir Seifu Legesse
Author-X-Name-First: Tenkir Seifu
Author-X-Name-Last: Legesse
Author-Name: Jiqiang Tang
Author-X-Name-First: Jiqiang
Author-X-Name-Last: Tang
Author-Name: Zhen Wu
Author-X-Name-First: Zhen
Author-X-Name-Last: Wu
Title: Financial leverage and firm efficiency: the mediating role of cash holding
Abstract:
Agency cost theory suggests that a firm’s financial leverage is important to improve organizational efficiency. Using data of industrial companies of three biggest economies, this study analyzes how debt-financing decision affects firm efficiency and the mediating role of cash holding. We find inverted U-shape relationship between the level of financial leverage and firm efficiency. This implies that firms with optimum capital structure achieve high efficiency. The cash-holding level of the companies negatively relates to the efficiency. We also document that the firms’ that apply more financial leverage are less likely to hold excess cash balances and that the cash holding partially mediates the relationship between the financial leverage and the firms’ efficiency. This suggests that the use of debt financing has the potential to enhance firm efficiency by effectively tapping the free cash flow that would have been misused by the management. The results have important implications for corporate finance since it highlights how financial decisions determine corporate productivity.
Journal: Applied Economics
Pages: 2108-2124
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855317
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855317
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Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2108-2124
Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Tan
Author-X-Name-First: Jianhua
Author-X-Name-Last: Tan
Author-Name: Zhidong Tan
Author-X-Name-First: Zhidong
Author-X-Name-Last: Tan
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: The impact of a tournament approach on environmental performance: the case of air quality disclosure in China
Abstract:
We examine the effect of air quality tournament over the 2012–2016 period on city – and firm-level environmental performance in China. We document that government officials and firm managers of tournament cities change their behavior and make more environmental investments (EIs) than those of non-tournament cities. Additional analysis suggests that the increase in EIs is primarily driven by cities that have previously been ranked last in the tournament. Hence, government official and manager behavior become more pro-environment after the implementation of the air quality tournament. Furthermore, when there is a large grassroots participation, local media reporting, or when the official is motivated to promotion, the impact of tournament participation on EIs is magnified, implying pro-environment behavior changes become more salient when there are outside pressure or strong official incentives. Most importantly, we find the tournament cities experience better air quality than non-tournament cities. Policy implications are discussed.
Journal: Applied Economics
Pages: 2125-2140
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1855318
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855318
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Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2125-2140
Template-Type: ReDIF-Article 1.0
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Yasir Riaz
Author-X-Name-First: Yasir
Author-X-Name-Last: Riaz
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Title: Spillover and risk transmission in the components of the term structure of eurozone yield curve
Abstract:
The components of term structure of interest rate are an important element of the asset pricing models. This article studies the connectedness of the component of the sovereign yield curve across eleven earliest members of the Eurozone comprising six core countries (Germany, Netherlands, Finland, Austria, Belgium, France) and five peripheral countries (Greece, Ireland, Italy, Portugal and Spain) thus enabling us to analyse the short-, medium- and long-term yield curve dynamics of these eurozone economies. We document three distinct phases of connectedness described by the early eurozone period, global financial crisis and the European sovereign debt crises, and the period afterwards. We find a higher level of connectedness between the countries before the global financial crisis, which decreased to its lowest levels during the European debt crisis and is now rising back to higher levels following the European debt crisis. We find that, in general, the core countries are net transmitter of spillover, whereas, the peripheral countries are net receivers of spillover for the three components of the yield curve.
Journal: Applied Economics
Pages: 2141-2157
Issue: 18
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856322
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856322
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Handle: RePEc:taf:applec:v:53:y:2021:i:18:p:2141-2157
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Dai
Author-X-Name-First: Wei
Author-X-Name-Last: Dai
Author-Name: Bo Zhang
Author-X-Name-First: Bo
Author-X-Name-Last: Zhang
Title: Endogenous business cycles with financial frictions
Abstract:
This paper uncovers a series of belief shocks that drive the U.S. economy from both financial markets data and a financial accelerator model with self-fulfiling prophecies. Indeterminacy in the economy does not require externalities or increasing returns in production but it arises from an endogenous and countercyclical markup channel. The computed belief shocks are well identified and resemble the observable proxy in the real world. The model-driven solely by belief shocks performs well on replicating major U.S. business cycle facts. The belief-driven model contains a strong internal propagation mechanism and has more forecasting ability than a standard real business cycle model disturbed by technology shocks.
Journal: Applied Economics
Pages: 2159-2169
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856323
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856323
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Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2159-2169
Template-Type: ReDIF-Article 1.0
Author-Name: Lan Thanh Nguyen
Author-X-Name-First: Lan Thanh
Author-X-Name-Last: Nguyen
Author-Name: Hung T. Nguyen
Author-X-Name-First: Hung T.
Author-X-Name-Last: Nguyen
Author-Name: Mia Hang Pham
Author-X-Name-First: Mia Hang
Author-X-Name-Last: Pham
Title: Bribe or die: gender differences in entrepreneurship in emerging markets
Abstract:
This paper examines the relation between gender differences in entrepreneurship and firm-level bribery, one of the most impactful business obstacles to private sector growth. Using data from a comprehensive survey covering 16,560 enterprises in 32 emerging economies, we find that female-led firms account for 19.2% of all enterprises, which is approximately 4 times lower than the share of male-led firms, and that female entrepreneurs experience a higher level of bribery than their peers. The impact of gender on bribery is more pronounced among firms located in countries that are more corruption-prone and becomes weaker among countries with a higher female graduation ratio at the tertiary level. In addition, female-run firms have a lower likelihood of obtaining a construction permit, securing a government contract, or holding an operating licence. Overall, the results suggest that a bribe-to-survive motive is a possible explanation for the higher level of bribery among female-led firms in emerging markets.
Journal: Applied Economics
Pages: 2170-2191
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856325
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856325
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Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2170-2191
Template-Type: ReDIF-Article 1.0
Author-Name: Gaoxun Zhang
Author-X-Name-First: Gaoxun
Author-X-Name-Last: Zhang
Author-Name: Gaoxiu Qiao
Author-X-Name-First: Gaoxiu
Author-X-Name-Last: Qiao
Title: Out-of-sample realized volatility forecasting: does the support vector regression compete combination methods
Abstract:
This article investigates whether the nonlinear support vector regression method under the Heterogeneous Auto-Regressive model (SVR-HAR) can compete for combination methods in terms of out-of-sample realized volatility forecasting. Empirical analyses are conducted based on the CSI 300 index high-frequency data, two new combination methods are employed and compared with the forecasting ability of the SVR method. The empirical results show that SVR-HAR models outperform individual models and all the combination methods, although the new combination methods are superior to other combination strategies. Specifically, HAR models with realized semi-variances as regressors obtains the lowest forecasting errors, confirming the strong forecasting ability of nonlinear SVR method and the realized semi-variances. The portfolio performance further confirms the highest economic value for models employing realized semi-variances and nonlinear SVR method in terms of volatility forecasting.
Journal: Applied Economics
Pages: 2192-2205
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856326
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856326
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Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2192-2205
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Beaumais
Author-X-Name-First: Olivier
Author-X-Name-Last: Beaumais
Author-Name: Sauveur Giannoni
Author-X-Name-First: Sauveur
Author-X-Name-Last: Giannoni
Author-Name: Caroline Tafani
Author-X-Name-First: Caroline
Author-X-Name-Last: Tafani
Title: Local buyers’ exclusion through price on the farmland market: a potential outcome approach
Abstract:
The influx of non-local buyers into the land market is commonly held responsible for the exclusion of local buyers through price. We study the seaside farmland market in Corsica. A massive price gap between non-local and local buyers is observed. To explore this gap, we rely on a treatment effect approach. We first estimate hedonic price models, while controlling for omitted variable bias using an innovative method. We go further and estimate a general potential outcome model which allows capturing observable and unobservable preference heterogeneity between buyers. We find that the price gap indeed reflects preference heterogeneity, suggesting market segmentation at work.
Journal: Applied Economics
Pages: 2206-2217
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856767
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856767
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Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2206-2217
Template-Type: ReDIF-Article 1.0
Author-Name: Wolfgang Drobetz
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Drobetz
Author-Name: Konstantinos Gavriilidis
Author-X-Name-First: Konstantinos
Author-X-Name-Last: Gavriilidis
Author-Name: Styliani-Iris Krokida
Author-X-Name-First: Styliani-Iris
Author-X-Name-Last: Krokida
Author-Name: Dimitris Tsouknidis
Author-X-Name-First: Dimitris
Author-X-Name-Last: Tsouknidis
Title: The effects of geopolitical risk and economic policy uncertainty on dry bulk shipping freight rates
Abstract:
We examine the effects of geopolitical risk (GPR) and economic policy uncertainty (EPU) on shipping freight rates using a Bayesian VAR model. A positive shock to global GPR has an immediate positive, but gradually diminishing, effect on dry bulk shipping freight rates. This effect is driven by global rather than country-specific GPR shocks. Positive shocks to EPU indices for the U.S., Brazil, and China trigger a negative response of dry bulk shipping freight rates that builds gradually over several months. Historical cumulative effects of both GPR and EPU shocks on freight rates can be large and of different signs during different subperiods. Our results are important for both shipowners and charterers when fixing chartering strategies and prioritizing investments in newbuilding or second-hand vessels.
Journal: Applied Economics
Pages: 2218-2229
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1857329
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1857329
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Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2218-2229
Template-Type: ReDIF-Article 1.0
Author-Name: Furkan Emirmahmutoglu
Author-X-Name-First: Furkan
Author-X-Name-Last: Emirmahmutoglu
Author-Name: Zulal Denaux
Author-X-Name-First: Zulal
Author-X-Name-Last: Denaux
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Title: Regime dependent causality relationship between energy consumption and GDP growth: evidence from OECD countries
Abstract:
This study empirically investigates the energy consumption-GDP growth nexus for the period from 1971 to 2016 for 26 OECD countries. The prevailing studies in the literature use limited econometric methodologies, which may wrongly model the underlying relationship and lead to misleading policy conclusions. Our study utilizes the newest econometric methods to reveal the nonlinear relationships in the long-run. Furthermore, to capture the asymmetric behaviour of regime changes, four residual-based nonlinear cointegration tests are implemented. Finally, a two-regime TAR type of panel threshold VECM model (PTVAR) is estimated for testing the presence of nonlinear short- and long-run causality. Our findings indicate a state-dependent causality between energy consumption and GDP growth.
Journal: Applied Economics
Pages: 2230-2241
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1857330
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1857330
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Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2230-2241
Template-Type: ReDIF-Article 1.0
Author-Name: José M. Pastor
Author-X-Name-First: José M.
Author-X-Name-Last: Pastor
Author-Name: Carlos Peraita
Author-X-Name-First: Carlos
Author-X-Name-Last: Peraita
Author-Name: Ángel Soler
Author-X-Name-First: Ángel
Author-X-Name-Last: Soler
Title: Gender differences in the intergenerational transmission of education in Spain: the role of parents’ employment status and education
Abstract:
This article examines the influence of parents’ education and employment status on the attained educational level of their children with special reference to gender differences. Our study analysed what determined the probability of Spanish young people completing university education. The study used a sample of 132,421 observations of people under the age of 28 not in any type of training or education selected using anonymized microdata from the most recent national population and housing census. An ordered probit model was used to capture the effect of various socioeconomic, environmental and cultural variables on the advancement and attainment of educational level according to gender. The results show that the most important variable in academic progress is the parents’ educational level and that the mother’s education level has a greater influence. Additionally, parental employment instability was found to be what most inhibits a child’s academic progress.
Journal: Applied Economics
Pages: 2242-2255
Issue: 19
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859449
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859449
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Handle: RePEc:taf:applec:v:53:y:2021:i:19:p:2242-2255
Template-Type: ReDIF-Article 1.0
Author-Name: Raymond Duch
Author-X-Name-First: Raymond
Author-X-Name-Last: Duch
Author-Name: Paulina Granados
Author-X-Name-First: Paulina
Author-X-Name-Last: Granados
Author-Name: Denise Laroze
Author-X-Name-First: Denise
Author-X-Name-Last: Laroze
Author-Name: Mauricio López
Author-X-Name-First: Mauricio
Author-X-Name-Last: López
Author-Name: Marian Ormeño
Author-X-Name-First: Marian
Author-X-Name-Last: Ormeño
Author-Name: Ximena Quintanilla
Author-X-Name-First: Ximena
Author-X-Name-Last: Quintanilla
Title: Choice architecture improves pension selection
Abstract:
Consumers in Chile of private and semi-private pension systems are not selecting the pension providers that give them the largest Net Present Value. Regulators present retirees with a comparison report of pension plan offerings ranked by the amount offered and the risk classification of the provider. A field experiment implemented in Chile explores alternative presentations of provider performance. We treat respondents by modifying the status quo information ‘package’ (that exactly replicate what is currently provided by the regulator). Two design choices clearly enhanced consumer welfare in this experiment: Reducing the amount of information improved choice – specifically eliminating the risk profiles of providers leads to better decisions by our respondents. Second, adopting a loss frame also resulted in respondents selecting providers that generated higher returns. These gains from modifying information presentation were considerably higher for those with lower levels of financial literacy. This study is conducted in association with the Superintendencia de Pensiones (SP) and the Comisión para el Mercado Financiero (CMF), two of the public offices that oversee the pensions market in Chile.
Journal: Applied Economics
Pages: 2256-2274
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1817845
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1817845
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Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2256-2274
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Joseph Minviel
Author-X-Name-First: Jean Joseph
Author-X-Name-Last: Minviel
Author-Name: Patrick Veysset
Author-X-Name-First: Patrick
Author-X-Name-Last: Veysset
Title: Are there economies of inputs in mixed crop-livestock farming systems? A cross-frontier approach applied to French dairy-grain farms
Abstract:
In this study, we test the hypothesis that mixed crop-livestock farms realize economies of inputs. To do so, we use the standard cross-frontier model to evaluate overall input efficiencies and develop a slacks-based (SB) cross-frontier model to evaluate input-specific efficiencies of mixed farms related to the best practice production frontier of specialized farms. These models are applied to an unbalanced panel with 825 observations on 247 French farms from 1991 to 2011. Regarding the standard cross-frontier framework, we find that 72% of the mixed farms exhibit diseconomies of inputs. This suggests that the mixed production technology is largely dominated by the specialized one in terms of input savings. Under the SB cross-frontier model, we find that the mixed farms exhibit, on average, diseconomies of inputs for each of their production factors. We also find that almost a quarter of the mixed farms realizes economies of inputs on the use of labour, fertilizers, and pesticides. Finally, regression results indicate that public subsidies and farm size are negatively associated with the probability of observing input economies. This suggests that, for our sample, the concept of mixed crop-livestock farming faces structural and socio-economic realities, mainly regarding farm size and public subsidies.
Journal: Applied Economics
Pages: 2275-2291
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1856324
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1856324
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Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2275-2291
Template-Type: ReDIF-Article 1.0
Author-Name: Tinna Laufey Ásgeirsdóttir
Author-X-Name-First: Tinna Laufey
Author-X-Name-Last: Ásgeirsdóttir
Author-Name: Arnar Buason
Author-X-Name-First: Arnar
Author-X-Name-Last: Buason
Author-Name: Brynja Jonbjarnardottir
Author-X-Name-First: Brynja
Author-X-Name-Last: Jonbjarnardottir
Author-Name: Thorhildur Ólafsdóttir
Author-X-Name-First: Thorhildur
Author-X-Name-Last: Ólafsdóttir
Title: The value of normal body weight: evidence from Iceland
Abstract:
Calculations of societal costs of underweight, overweight and obesity have generally failed to include the value of the utility reductions, associated with deviations from normal weight. To remedy this, the monetary compensation needed to offset the welfare loss associated with being underweight, overweight, or obese, according to World Health Organizations standards, is estimated. For this purpose, the compensating income variation (CIV) method is applied to individual-level data from an Icelandic health and lifestyle survey carried out in 2007, 2009, 2012, and 2017. The results show that both males and females would on average be willing to pay a positive amount to move from obesity to normal weight, albeit a varying amount by income group. The CIV for moving from obesity to normal weight among males for the low-, medium-, and high-income groups are $18,022, $25,768, and $632,002 per year. In comparison the same results for females are $9,191, $16,239, and $95,494. However, only females show a positive willingness to pay for not being overweight. The CIV for overweight females for the three income groups is $3,608, $6,375, and $37,488 per year.
Journal: Applied Economics
Pages: 2292-2304
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859450
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859450
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Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2292-2304
Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Lawson
Author-X-Name-First: Joshua
Author-X-Name-Last: Lawson
Author-Name: Rafayet Alam
Author-X-Name-First: Rafayet
Author-X-Name-Last: Alam
Author-Name: Xiaoli Etienne
Author-X-Name-First: Xiaoli
Author-X-Name-Last: Etienne
Title: Speculation and food-grain prices
Abstract:
The impact of speculative activities in financial markets on food-grain prices is a topical but debated issue. We consider four major food-grain commodities and several speculation measures–which represent different underlying definitions of speculation–in structural vector autoregression models to examine this issue empirically. Results show that the impact of speculation depends on the commodity in question (rice and wheat are generally less sensitive than corn and soybean) and the measure of speculation used. Further analysis shows that traders’ behaviour in the futures market is different for wheat and rice, around 80% of which are directly used for human consumption, compared to corn and soybean, only around 15% of which are directly used as human food. We also show that the heterogeneous effect of different speculative measures is mostly due to their construction. Results are robust to various modifications of the models. From a policy perspective, we think a blanket regulation for all the commodities may not be optimal.
Journal: Applied Economics
Pages: 2305-2321
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859451
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859451
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Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2305-2321
Template-Type: ReDIF-Article 1.0
Author-Name: Insook Lee
Author-X-Name-First: Insook
Author-X-Name-Last: Lee
Title: Does outlawing mandatory retirement reduce public-pension benefit claim?
Abstract:
Exploiting the 2011 abolishment of the mandatory-retirement provision that had allowed employers to force retirement of their 65-or-older employees in the UK, this paper estimates the effect of outlawing mandatory retirement on public-pension benefit claim behaviour of the elderly through changing their employment and retirement rates. Abolishing mandatory retirement raises public-pension claim rate of non-household-head benefit-eligible individuals by making them retire more, while it lowers public-pension claim rate of household-head benefit-eligible individuals by lowering their retirement rate. On the other hand, the abolishment raises full-time employment rate of the elderly, regardless of household-head status or gender.
Journal: Applied Economics
Pages: 2322-2336
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859452
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859452
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Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2322-2336
Template-Type: ReDIF-Article 1.0
Author-Name: Amélie Barbier-Gauchard
Author-X-Name-First: Amélie
Author-X-Name-Last: Barbier-Gauchard
Author-Name: Kea Baret
Author-X-Name-First: Kea
Author-X-Name-Last: Baret
Author-Name: Alexandru Minea
Author-X-Name-First: Alexandru
Author-X-Name-Last: Minea
Title: National fiscal rules and fiscal discipline in the European Union
Abstract:
Motivated by the fiscal imbalances in the EU countries in the recent period, this paper analyzes the effect of national fiscal rules on fiscal discipline. Using a careful definition of national fiscal rules combined with a novel measure of fiscal discipline (the Global Financial Performance Index – GFPI), propensity score matching estimations that account for potential endogeneity reveal that fiscal rules significantly improve the GFPI. However, this favourable effect dramatically depends upon the type of fiscal rule and different structural factors. These two features, together with alternative measures of fiscal discipline, are found to be key ingredients that should be taken into account when assessing the effects of fiscal rules on fiscal discipline.
Journal: Applied Economics
Pages: 2337-2359
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859453
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859453
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Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2337-2359
Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Title: Does greater bank competition increase third-party guarantee loan default rates? evidence from U.S. interstate branching deregulation
Abstract:
Exploiting the interstate branching restrictiveness law that allowed states to erect barriers to branch expansion, we test whether increased interbank competition increases risk-bearing, proxied by higher loan default, for third-party loan guarantors. We find that Small Business Administration (SBA) loans from states with higher restrictiveness (lower competition) are less likely to default, by at least four percent. The findings are robust to a variety of falsification tests. Confirming increased risk transfer to SBA, banks in less restrictive states facing increased competition: increased both SBA loan amount and duration of the loan and the learning-by-loaning (cumulative loan volume before the current loan) did not affect the likelihood of default of the current loan. Counterfactually, loans of higher approval amount and longer duration were less likely to default in more restrictive states.
Journal: Applied Economics
Pages: 2360-2383
Issue: 20
Volume: 53
Year: 2021
Month: 04
X-DOI: 10.1080/00036846.2020.1859454
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859454
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Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2360-2383
Template-Type: ReDIF-Article 1.0
Author-Name: Chew Lian Chua
Author-X-Name-First: Chew Lian
Author-X-Name-Last: Chua
Author-Name: Nelson Perera
Author-X-Name-First: Nelson
Author-X-Name-Last: Perera
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: Fiscal regimes and fiscal sustainability in Sri Lanka
Abstract:
This paper employs the regime-switching model-based fiscal sustainability test which relaxes the linear fiscal reaction function approach. There is evidence of a regime-switching fiscal rule in Sri Lanka for the period 1961–2017. Non-sustainable fiscal regime is identified only in two periods – 1978-1983 and 1986-1990 – while the other periods are defined by sustainable regimes. By considering the regime-specific feedback coefficients of the fiscal policy rule and the average durations of fiscal regimes, we find that Sri Lanka’s fiscal policy satisfies the No-Ponzi game condition. Nevertheless, the country’s long-term fiscal sustainability is in question given that the stricter debt-stabilizing condition is violated. Our results pose concerns for the credibility of adopting an inflation targeting framework in the absence of long-term fiscal sustainability.
Journal: Applied Economics
Pages: 2384-2397
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1859456
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859456
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Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2384-2397
Template-Type: ReDIF-Article 1.0
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Author-Name: Zhao Zhao
Author-X-Name-First: Zhao
Author-X-Name-Last: Zhao
Title: Large cryptocurrency-portfolios: efficient sorting with leverage constraints
Abstract:
Using daily data of the 100 largest cryptocurrencies, we construct the efficient sorting portfolios and the quantile-based sorting portfolios based on ten factors. We find two price factors that can well predict cryptocurrency returns. The efficient sorting portfolios outperform the traditional quantile-based portfolios and the naive $$1/N$$1/N portfolios. The outperformance is largely due to the use of DCC-NL estimator, which captures the dynamic of covariance matrix and meanwhile addresses the curse of dimensionality. In addition, leverage constraints are important for cryptocurrency portfolios to control their risks.
Journal: Applied Economics
Pages: 2398-2411
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1859457
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859457
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Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2398-2411
Template-Type: ReDIF-Article 1.0
Author-Name: Yun Pu
Author-X-Name-First: Yun
Author-X-Name-Last: Pu
Title: A recursive algorithm for student selection of schools in a constrained serial dictatorship mechanism
Abstract:
The constrained serial dictatorship mechanism is a popular method used in school admissions. However, due to the number of combinations possible, simulating the behaviour of students in their selection of schools and computing the best strategy for them to select a limited number of schools is currently a highly complex and time-consuming endeavour. The purpose of this study is to propose a recursive algorithm to significantly reduce this computational time and to provide an empirical application by employing this algorithm. To do this, I studied how the behaviours and utilities of students will change if provided with more choices for college admissions in Guangxi in China. The results indicate that neither the behaviours nor the utilities change significantly with the provision of more choices, which implies that increasing the available choices of schools for students in Guangxi would be a waste of resources.
Journal: Applied Economics
Pages: 2412-2415
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861204
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861204
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Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2412-2415
Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Kjær Eskildsen
Author-X-Name-First: Jacob Kjær
Author-X-Name-Last: Eskildsen
Author-Name: Anders Frederiksen
Author-X-Name-First: Anders
Author-X-Name-Last: Frederiksen
Author-Name: Ann-Kristina Løkke Møller
Author-X-Name-First: Ann-Kristina
Author-X-Name-Last: Løkke Møller
Title: Employee absence in public and private organizations
Abstract:
We study employee absence in Danish public and private organizations. Using data from four private and four public organizations we establish sector differences and that absence is predominantly an individualized phenomenon. Because the within-group variation in absence clearly dominates the between-group variation, we conclude that organizations need to invoke individualized policies to reduce employee absence, and we establish that incentives related to promotions and dismissals can be useful tools, as absence behaviour interacts with such incentives.
Journal: Applied Economics
Pages: 2416-2432
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861206
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861206
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Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2416-2432
Template-Type: ReDIF-Article 1.0
Author-Name: Phu Nguyen-Van
Author-X-Name-First: Phu
Author-X-Name-Last: Nguyen-Van
Author-Name: Isabelle Terraz
Author-X-Name-First: Isabelle
Author-X-Name-Last: Terraz
Title: When union’s activity matters: the impact of union centralization on economic growth in OECD countries
Abstract:
It is nowadays accepted that labour market institutions matter in economic development. However, empirical studies on unions’ effect are not univocal. We provide new insight into the impact of unions on the long-run performance of industrialized economies using an indicator of union centralization. Relying on a recent panel dataset of OECD countries, we estimate a growth equation and show that a high degree of union centralization can be harmful to growth. This effect is not driven by economic channels (such as private investment, human capital and research and development) but appears to be related to a direct effect of unions on the growth process.
Journal: Applied Economics
Pages: 2433-2446
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861207
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861207
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Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2433-2446
Template-Type: ReDIF-Article 1.0
Author-Name: Alexandre Mayol
Author-X-Name-First: Alexandre
Author-X-Name-Last: Mayol
Author-Name: Stéphane Saussier
Author-X-Name-First: Stéphane
Author-X-Name-Last: Saussier
Title: Contract renewals, prices and deprivatizations: The case of water in France
Abstract:
In this paper, we studied the influence of contract renewals on water prices in France. When studying French water contracts in force between 2008 and 2018, we found that contract renewals have little influence on the prices paid by consumers. However, at contract renewal times, the share of the price that goes to the firms decreases. This price decrease is compensated by an increase in the share of the price that is retained by the municipalities. We interpret this result as a willingness by municipalities to retake control of water services. In addition, we show that the higher the municipalities’ shares are, the higher the probability of switching to direct public management at contract renewal times. This suggests that local authorities increasing their responsibilities in providing water services (i.e., increasing their price shares) may switch later to direct public management more easily.
Journal: Applied Economics
Pages: 2447-2456
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861208
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861208
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Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2447-2456
Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Zehe Song
Author-X-Name-First: Zehe
Author-X-Name-Last: Song
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: Soft information in insurer lending and reinsurance under capital regulation
Abstract:
The paper develops a capped call option framework, explicitly integrating the borrowing-firm credit risk. Moreover, modelling the structural breaks in assets and volatility captures soft information about the insurer’s borrowing firm. We show that favourable soft information increases the optimal guaranteed rate and thus enhances policyholder protection. The negative effect of the reinsurance on the optimal guaranteed rate is more significant when obtaining negative soft information than when getting favourable soft information. The positive impact of stringent capital regulation on the optimal guaranteed rate in the negative soft information is less significant than that in the favourable soft information. Stringent capital regulation increases policyholder protection and the market-to-book equity value when the strict capital regulation is high, thereby contributing to insurance stability.
Journal: Applied Economics
Pages: 2457-2466
Issue: 21
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1861210
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861210
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Handle: RePEc:taf:applec:v:53:y:2021:i:21:p:2457-2466
Template-Type: ReDIF-Article 1.0
Author-Name: Elke Hahn
Author-X-Name-First: Elke
Author-X-Name-Last: Hahn
Title: How are wage developments passed through to prices in the euro area? Evidence from a BVAR model
Abstract:
This paper explores the transmission mechanism between wages and prices in the euro area. While labour costs account for notable parts of companies’ costs and should, hence, be of relevance for the developments in inflation, the empirical literature suggests only a loose link between the variables. From a theoretical perspective there are at least two broad categories of channels of how labour costs and prices can be linked, namely the supply-side channel of cost push inflation and the demand-side channel of demand pull inflation. This paper develops a BVAR model for the wage-price pass-through in the euro area and analyses how supply and demand shocks that trigger these two types of inflation are transmitted between wages and prices along the cost side of the economy. The main results can be summarized as follows: First, the wage-price pass-through in the euro area is shock-dependent. Second, the pass-through of wages to prices appears to have undergone some changes over time. Third, the pass-through appears to differ across HICP components. Finally, historical decompositions show that the identified shocks are of relevance for the movements of wages and prices in the euro area.
Journal: Applied Economics
Pages: 2467-2485
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2019.1676390
File-URL: http://hdl.handle.net/10.1080/00036846.2019.1676390
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Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2467-2485
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Ismail Alhussam
Author-X-Name-First: Mohammed Ismail
Author-X-Name-Last: Alhussam
Author-Name: Hongxing Yao
Author-X-Name-First: Hongxing
Author-X-Name-Last: Yao
Author-Name: Omar Abu Risha
Author-X-Name-First: Omar
Author-X-Name-Last: Abu Risha
Title: The impact of scholarship inflows on achieving food security: what can Bayesian networks tell us?
Abstract:
This study uses Bayesian networks besides the regression model to analyse the relationship between scholarship inflows and food security in 46 of Belt and Road Initiative countries. Our main contributions are: 1 – Analysing the relationship between scholarship inflows and food security. 2 – Using Bayesian networks to analyse this relationship. 3 – Comparing Bayesian networks results with regression model results. The regression model resulted that scholarship inflows have a significant positive effect on food security with small coefficient value. On the other hand, Bayesian networks showed that food security conditionally depends on scholarship inflows given the percentage of agricultural value add of GDP. In addition, Bayesian networks had higher prediction accuracy than the regression model. Whereas the constraint-based approach of network structure learning showed the highest prediction power, the information theory measures of network quality, including Entropy and Mutual Information, revealed better performance than Bayesian measures. Finally, we concluded that using Bayesian networks beside linear models could enhance our results.
Journal: Applied Economics
Pages: 2486-2499
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1778160
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1778160
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Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2486-2499
Template-Type: ReDIF-Article 1.0
Author-Name: Min Liu
Author-X-Name-First: Min
Author-X-Name-Last: Liu
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Wei-Chong Choo
Author-X-Name-First: Wei-Chong
Author-X-Name-Last: Choo
Title: The role of high-frequency data in volatility forecasting: evidence from the China stock market
Abstract:
This research investigates the role of high-frequency data in volatility forecasting of the China stock market by particularly feeding different frequency return series directly into a large number of GARCH versions. The contributions of this research are as follows. 1) We provide clear evidence to support that the superiority of traditional time series models in volatility forecasting remains by taking advantage of high-frequency data. 2) We incorporate different distribution assumptions in GARCH models to capture the stylized facts of high-frequency data. The result shows that: 1) data frequency in GARCH application substantially influence the accuracy of volatility forecasting, as the higher the frequency is of the return series, the better are the forecasts provided; 2) non-normal distributions such as skewed student-t and generalized error distribution are more capable at reproducing the stylized facts of both intraday and daily return series than normal distribution; and 3) GARCH estimated by 5-min returns not only outperforms other GARCH alternatives, but also considerably beats RV-based models such as HAR and ARFIMA at volatility forecasting.
Journal: Applied Economics
Pages: 2500-2526
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1862747
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1862747
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Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2500-2526
Template-Type: ReDIF-Article 1.0
Author-Name: Jungho Baek
Author-X-Name-First: Jungho
Author-X-Name-Last: Baek
Title: Crude oil prices and macroeconomic activities: a structural VAR approach to Indonesia
Abstract:
The effects of oil price fluctuations on growth, inflation, and exchange rates for Indonesia are investigated in the framework of the structural vector autoregressive (SVAR). To identify linking oil prices to the macroeconomic activities accurately, the entire sample period is separated into two sub-samples such as the era of net oil exporter (1998:M1-2003:M12) and the era of net oil importer (2004:M1-2019:M4). In the era of net oil exporter, we discover that a surge in oil prices promotes growth and contributes to appreciating the Indonesian currency. In the era of net oil importer, by contrast, an upsurge in oil prices reduces growth and causes a depreciation of the exchange rate. However, there is little evidence that an upswing in oil prices in both eras has a significantly detrimental effect on inflation.
Journal: Applied Economics
Pages: 2527-2538
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1862750
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1862750
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Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2527-2538
Template-Type: ReDIF-Article 1.0
Author-Name: Ahsen Maqsoom
Author-X-Name-First: Ahsen
Author-X-Name-Last: Maqsoom
Author-Name: Imran Arif
Author-X-Name-First: Imran
Author-X-Name-Last: Arif
Author-Name: Khuram Shafi
Author-X-Name-First: Khuram
Author-X-Name-Last: Shafi
Author-Name: Muhammad Umer
Author-X-Name-First: Muhammad
Author-X-Name-Last: Umer
Author-Name: Tahira Nazir
Author-X-Name-First: Tahira
Author-X-Name-Last: Nazir
Author-Name: Samina Nawab
Author-X-Name-First: Samina
Author-X-Name-Last: Nawab
Title: Motives and competitive assets for internationalization: a comparison between emerging and developed economy international construction contracting firms
Abstract:
This study aims to evaluate the differences in the internationalization of emerging and developed economies firms. Using an integrated theoretical approach, this paper examines the motives and competitive assets (firm and home country-specific) that enabled the international expansion of Pakistani and British international construction contracting firms (ICCFs) into Middle East markets. The data for the current study were collected through questionnaire-based survey. Further, the statistical analysis of the collected data was accomplished by applying the Man Whitney-U test, using Statistical Package for the Social Sciences (SPSS). Findings show that Pakistani ICCFs have a reactive approach for their internationalization as compared to British ICCFs. In order to get the recognition of global players, Pakistani ICCFs need to enhance their firm-specific competitive assets, specifically international reputation, quality of services, internationally experienced management and financing capital. Further, the results also revealed that the home country support in the form of good image, economic development, government encouragement, and availability of funding from local banks has contributed significantly towards British ICCFs expansion. Pakistani ICCFs have an advantage in terms of supportive industries and multicultural workforce availability. However, local governmental encouragement and friendly business policies are needed to enhance their competitiveness in international markets.
Journal: Applied Economics
Pages: 2539-2553
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863321
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863321
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Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2539-2553
Template-Type: ReDIF-Article 1.0
Author-Name: T. Randolph Beard
Author-X-Name-First: T. Randolph
Author-X-Name-Last: Beard
Author-Name: George Ford
Author-X-Name-First: George
Author-X-Name-Last: Ford
Author-Name: Lawrence J. Spiwak
Author-X-Name-First: Lawrence J.
Author-X-Name-Last: Spiwak
Title: Spatial competition in automobile retailing
Abstract:
Despite a rich literature on the determinants of automobile pricing, there is relatively little formal evidence regarding the effects of spatial intrabrand competition in auto retailing. Using an extremely large sample of tax registrations in Texas (USA) for 19 of the most popular sedans, we examine how the closeness of a dealer selling the same make and model of vehicle affected the final price. We find very strong evidence that the proximity of a same-brand dealer reduces prices significantly, though we find smaller effects for the lowest priced vehicles, a result consistent with the view that such vehicles are sold essentially at cost in order to satisfy Corporate Average Fuel Economy (CAFE) standards and related fleet characteristic regulations.
Journal: Applied Economics
Pages: 2554-2566
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863322
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863322
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Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2554-2566
Template-Type: ReDIF-Article 1.0
Author-Name: Ping Zhang
Author-X-Name-First: Ping
Author-X-Name-Last: Zhang
Author-Name: Yan Liu
Author-X-Name-First: Yan
Author-X-Name-Last: Liu
Author-Name: Lu Miao
Author-X-Name-First: Lu
Author-X-Name-Last: Miao
Title: Impacts of social networks on floating population wages under different marketization levels: empirical analysis of China’s 2016 national floating population dynamic monitoring data
Abstract:
This paper establishes a measurement model to examine the impacts of social network heterogeneity on the wages of the floating population, and the different impacts under different levels of marketization. The main findings are: (1) Social network heterogeneity can increase the wages of the floating population, which is particularly significant for urban-urban migrants with non-agricultural registration; (2) The effect of social network heterogeneity on the wages of the floating population is due to the different levels of marketization of the destination market of inflows. The levels of marketization vary from place to place: in cities with low marketization levels, the homogeneous social networks can increase the wages more than the heterogeneous social networks. With marketization levels increase, social networks can increase the employment wages of migrants through three stages: the stage of the homogeneous social network is stronger than heterogeneous social network; the stage of no significant difference between homogeneous social network and heterogeneous social network; the stage of heterogeneous social network is stronger than homogeneous social network. In general, for the wages of rural-urban migrants with agricultural hukou, homogeneous social networks and marketization levels have a substitutional relationship, while heterogeneous social networks and marketization levels have a complementary relationship.
Journal: Applied Economics
Pages: 2567-2583
Issue: 22
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863323
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863323
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Handle: RePEc:taf:applec:v:53:y:2021:i:22:p:2567-2583
Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Khazaei
Author-X-Name-First: Mehdi
Author-X-Name-Last: Khazaei
Title: Relationship of profitability of world’s top companies with entrepreneurship, competitiveness, and business environment indicators
Abstract:
Identifying the factors affecting profitability is important from the perspective of market players. One of the most important benchmarks of firm performance is accounting profit and effective factors analysis so that users of accounting information analyse the factors affecting profit, firm performance and various aspects of its performance and according to estimates Done, make your own decision on how to allocate resources.The main purpose of this study is to investigate the impact of some factors of competitiveness, entrepreneurship and business environment indicators on the profitability of the world’s top companies. For this purpose, 176 top companies in the world from 2013 to 2018 that were profitable among the top 200 companies each year were selected as the statistical population. World Bank annual reports, Global Competitiveness Index, Global Entrepreneurship Monitor, and Fortune site were used to collect the data. Also the data analysis was done according to the data panel method using Eviews10 software. The results show that in general, there is a positive relationship between competitiveness, entrepreneurship and business environment indicators with financial performance of top companies in the world. On the other hand, the per capita income of the countries in which the top companies belonged was considered as a control variable and the results show that the per capita income has a positive and significant relationship with the financial performance of the top companies in the world.
Journal: Applied Economics
Pages: 2584-2597
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1859455
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1859455
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Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2584-2597
Template-Type: ReDIF-Article 1.0
Author-Name: Koffi Sodokin
Author-X-Name-First: Koffi
Author-X-Name-Last: Sodokin
Title: Comparative analysis, cash transfers, household investment and inequality reduction in Togo
Abstract:
This paper explores the impact of domestic and international cash transfers on poverty and household resilience in Togo from a comparative perspective. The paper uses data from two household surveys (The Unified Questionnaire of Basic Well-being Indicators) conducted by the National Institute of Statistics Economic and Demographic Studies of Togo in 2011 and 2015. The analysis uses the propensity score matching method and the quantile instrumental regression. The first category of results shows that migrants’ external and internal remittances positively affect poverty and inequality and improve households’ investments in Togo. The second category of results allows concluding on the implications for public policy in a time of pandemic shock, such as the Sars-Cov-2 one.JEL: O12; O38; O55
Journal: Applied Economics
Pages: 2598-2614
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863324
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863324
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Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2598-2614
Template-Type: ReDIF-Article 1.0
Author-Name: Jin Zhou
Author-X-Name-First: Jin
Author-X-Name-Last: Zhou
Author-Name: Ali Raza
Author-X-Name-First: Ali
Author-X-Name-Last: Raza
Author-Name: Hongguang Sui
Author-X-Name-First: Hongguang
Author-X-Name-Last: Sui
Title: Infrastructure investment and economic growth quality: empirical analysis of China’s regional development
Abstract:
The study aims to systematically examine the role of infrastructure investment on the quality of economic growth by using the regional panel data of 29 Chinese provinces. A comprehensive index is developed using the principal component analysis (PCA) to observe the economic growth quality. Regression results show that China’s infrastructure investment has not exceeded the threshold, and the quality of economic growth has improved significantly. The results were robust using the regional average investment level and infrastructure stock as instrumental variables for 2SLS and system GMM testing. Further, the mediation analysis confirms that infrastructure investment improves economic growth through the physical and material circulation of resources, market integration, and knowledge capital evolution. Overall the results provide more profound policy enlightenment with regards to infrastructure investment.
Journal: Applied Economics
Pages: 2615-2630
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1863325
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1863325
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Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2615-2630
Template-Type: ReDIF-Article 1.0
Author-Name: Tiago Neves Sequeira
Author-X-Name-First: Tiago Neves
Author-X-Name-Last: Sequeira
Author-Name: Pedro Mazeda Gil
Author-X-Name-First: Pedro Mazeda
Author-X-Name-Last: Gil
Author-Name: Óscar Afonso
Author-X-Name-First: Óscar
Author-X-Name-Last: Afonso
Title: Inflation, complexity and endogenous growth
Abstract:
In this article, we argue that inflation increases complexity pertaining to knowledge production (or R&D). Then, we expand a recently developed complexity index based on entropy to include the effect of inflation. As a result of this new mechanism in an endogenous growth model, inflation is no longer superneutral. In the model, inflation can decrease economic growth in a non-linear way, a sudden upward shock on inflation can severely hurt economic growth and an inflation cut can be responsible for a take-off. These effects are illustrated quantitatively.
Journal: Applied Economics
Pages: 2631-2646
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1864274
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1864274
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Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2631-2646
Template-Type: ReDIF-Article 1.0
Author-Name: Ting Yao
Author-X-Name-First: Ting
Author-X-Name-Last: Yao
Author-Name: Liangrong Song
Author-X-Name-First: Liangrong
Author-X-Name-Last: Song
Title: Examining the differences in the impact of Fintech on the economic capital of commercial banks’ market risk: evidence from a panel system GMM analysis
Abstract:
This article aims to explore the dynamic relationship between Fintech (financial technology) and EC(the economic capital of commercial banks market risk) changes for a sample of 16 listed commercial banks in China. We estimate a balance panel dynamic system Generalized Method of Moment (GMM) approach for the period of January 2011 to September 2019.The article finds that during the sample period, Fintech has reduced the cost of information on both sides of the transaction, increased the transparency of market information, and reduced the EC. It also finds Fintech can provide a large amount of data for commercial banks to conduct market analysis, which makes the procyclicality of commercial banks less than before. Further tests reveal commercial banks have profit-driven preferences, while banks with strong profitability and high asset scale have higher risk tolerance. The impact of Fintech on the EC of different asset sizes commercial banks market risk is different.
Journal: Applied Economics
Pages: 2647-2660
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1864275
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1864275
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Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2647-2660
Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Heng Lee
Author-X-Name-First: Yung-Heng
Author-X-Name-Last: Lee
Author-Name: Lori Tzu-Yi Yang
Author-X-Name-First: Lori Tzu-Yi
Author-X-Name-Last: Yang
Title: Corporate social responsibility and financial performance: a case study based in Taiwan
Abstract:
This study investigates whether the impact of a firm’s CFP differs depending on the level of CSR performance and the amount of annual operating expenditure. The ‘Excellence in Corporate Social Responsibility TOP 50’ award results serve as the CSR performance indicator, and corporate annual financial performance data from 2013 to 2017 serve as empirical data. This study uses the panel smooth transition regression model. The findings reveal that the relationship between a firm’s operating expenditures and its profitability is non-linear, and with certain threshold values of CSR scores, operating spend has a more significant and negative effect on profitability. Firms that implemented more CSR measures experienced greater negative effects on profitability.
Journal: Applied Economics
Pages: 2661-2670
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866158
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866158
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Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2661-2670
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Guo
Author-X-Name-First: Wei
Author-X-Name-Last: Guo
Author-Name: Sebastian A. Gehricke
Author-X-Name-First: Sebastian A.
Author-X-Name-Last: Gehricke
Author-Name: Xinfeng Ruan
Author-X-Name-First: Xinfeng
Author-X-Name-Last: Ruan
Author-Name: Jin E. Zhang
Author-X-Name-First: Jin E.
Author-X-Name-Last: Zhang
Title: The implied volatility smirk in SPY options
Abstract:
We provide a comprehensive study of the implied volatility (IV) smirk in the SPDR S&P 500 Exchange-Traded Fund (SPY ETF) option market. In general, the IV curves are downward sloping with little curvature, exhibiting an almost straight line. However, the shape of the IV curves becomes more curved during the global financial crisis (GFC) period, indicating that the commonly accepted IV smirk shape is driven by the GFC. In addition, based on in-sample, out-of-sample tests and asset allocation analysis, we show that the first difference of the slope factor can predict the next month’s SPY excess returns.
Journal: Applied Economics
Pages: 2671-2692
Issue: 23
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866159
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866159
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Handle: RePEc:taf:applec:v:53:y:2021:i:23:p:2671-2692
Template-Type: ReDIF-Article 1.0
Author-Name: Mario Eboli
Author-X-Name-First: Mario
Author-X-Name-Last: Eboli
Author-Name: Andrea Toto
Author-X-Name-First: Andrea
Author-X-Name-Last: Toto
Author-Name: Andrea Ziruolo
Author-X-Name-First: Andrea
Author-X-Name-Last: Ziruolo
Title: Mafia infiltrations in Italian municipalities: two statistical indicators
Abstract:
We study the administrative behaviour of a sample of Italian municipalities dismissed by the Government because of mafia infiltrations, looking at their balance-sheet data. Using linear discriminant analysis and logistic regressions, we put forward two statistical indicators of the probability that a mafia infiltrated a city council. Our results characterize the administrative profile of infiltrated municipalities. We obtain non-obvious results concerning their i) high levels of arrears, both of tax collections and payments; ii) low levels of indebtness; and iii) low levels of capital expenditures, especially for public works.
Journal: Applied Economics
Pages: 2693-2712
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866157
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866157
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Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2693-2712
Template-Type: ReDIF-Article 1.0
Author-Name: Giulia Tiboldo
Author-X-Name-First: Giulia
Author-X-Name-Last: Tiboldo
Author-Name: Alessandro Bonanno
Author-X-Name-First: Alessandro
Author-X-Name-Last: Bonanno
Author-Name: Rigoberto A. Lopez
Author-X-Name-First: Rigoberto A.
Author-X-Name-Last: Lopez
Author-Name: Elena Castellari
Author-X-Name-First: Elena
Author-X-Name-Last: Castellari
Title: Competitive and welfare effects of private label presence in differentiated food markets
Abstract:
Private labels (PLs), originally introduced by food retailers as low-priced alternatives to national brands, have expanded in recent years in premium market segments. This article examines how the presence of different types of PLs affect prices, competition, and overall welfare. Using estimates from a random coefficients logit demand model and retail scanner data of yogurt sales from 17 regions in Italy, we simulate counterfactual scenarios where different types of PLs – namely 1) horizontally differentiated; 2) vertically differentiated; and 3) both types – are no longer in the market. The empirical results show that PLs are social-welfare enhancing, playing a pro-competitive role that benefits consumers. Also, in both a relative and an absolute sense, the welfare-increasing effect of PLs presence is more significant for horizontally differentiated PLs than for vertically differentiated ones.
Journal: Applied Economics
Pages: 2713-2726
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866160
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866160
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Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2713-2726
Template-Type: ReDIF-Article 1.0
Author-Name: Yuan Zhong
Author-X-Name-First: Yuan
Author-X-Name-Last: Zhong
Author-Name: Zhenguo Wang
Author-X-Name-First: Zhenguo
Author-X-Name-Last: Wang
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Title: China’s functional upgrading in global value chains and its drivers: a multi-country chaining structural decomposition analysis
Abstract:
The functional activities, such as management, marketing, R&D and fabrication, carried out by a country or industry is of great importance for its governance and upgrading on the global value chains (GVCs). This paper provides a long-term macro-economic analysis on China’s functional upgrading in GVCs and its drivers between 1999 and 2011. We combine the world input-output database with the newly compiled labour occupations database to measure China’s functional income growth in internationally fragmented production networks, and then incorporate the concept into the chaining structural decomposition analysis (SDA) to explore its drivers. We find that China has achieved functional upgrading to some degree, reflected in the growth of China’s domestic value added in headquarter activities, such as R&D, at the aggregate and industrial levels. However, fabrication activity still stands out, indicating that China still has a long way to go on upgrading in GVCs. Finally, through the chaining SDA, we find that among the GVC production, technology and consumption effects, the consumption level (consumer demand) is the main factor driving the growth of China’s functional upgrading.
Journal: Applied Economics
Pages: 2727-2742
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866161
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866161
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Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2727-2742
Template-Type: ReDIF-Article 1.0
Author-Name: Bent Egberg Mikkelsen
Author-X-Name-First: Bent Egberg
Author-X-Name-Last: Mikkelsen
Author-Name: Dana Strachotová
Author-X-Name-First: Dana
Author-X-Name-Last: Strachotová
Author-Name: Annette Quinto Romani
Author-X-Name-First: Annette
Author-X-Name-Last: Quinto Romani
Title: Does removal of value added tax on fruit and vegetables increase sale – case of a Danish retailer
Abstract:
Pricing strategies are considered to be one of the important options in changing consumer food behaviour. As a result, there is a growing interest in studying the effects of interventions that promotes the healthy choice through price interventions. This paper aims to examine the effect of a pricing intervention on fruit & vegetables (F&V) in supermarkets. The intervention consisted of a removal of the 20% VAT Data on F&V sale and retailer – revenue was collected pre- and post-intervention in all chain-supermarkets. Users of ecological and conventional fruit and vegetables constituting our intervention group and the control group is users of ecological and conventional dairy products. We found a beneficial impact of the intervention on the sale and revenue related to fruit and vegetable products. The revenue and sale of fruit and vegetables increased by 354 952.60 DKK (24.92%) and 65 065.16 units (32.92%) respectively. Results suggest a beneficial impact on the sale and revenue related to fruit and vegetable products. Results show that the subsidy also had unintended impacts on the sale and revenue related to non-intervention products. That included adverse impact of the subsidy on unsubsidized healthy complementary products.
Journal: Applied Economics
Pages: 2743-2751
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1866743
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1866743
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Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2743-2751
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Omid Ranjbar
Author-X-Name-First: Omid
Author-X-Name-Last: Ranjbar
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Title: Analyzing the hysteresis properties and growth stability of renewable energy production of the U.S
Abstract:
By applying the non-linear quantile unit-root test and Fourier quantile unit-root test, this research investigates the hysteresis properties and growth stability of total and disaggregated renewable energy productions in the U.S. from 1973:01 to 2019:08. Unlike traditional unit-root tests that fail to reject the unit-root hypothesis, our results indicate that all renewable energy production series are stationary, but the degrees of persistence for positive and negative shocks are energy source-specific. In most cases, the negative shocks have more long-lasting effects than positive shocks. Evidence also shows that the growth rates in total biomass, hydroelectric power, wind, and biofuel energies have experienced a slowdown/meltdown, while other types of renewable energies have exhibited increasing growth rates in the current decade. Knowledge of these hysteresis/stability properties can help prevent governments from initiating a ‘one-size-fits-all’ policy.
Journal: Applied Economics
Pages: 2752-2770
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869168
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869168
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Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2752-2770
Template-Type: ReDIF-Article 1.0
Author-Name: Sholeh A. Maani
Author-X-Name-First: Sholeh A.
Author-X-Name-Last: Maani
Author-Name: Le Wen
Author-X-Name-First: Le
Author-X-Name-Last: Wen
Title: Over-education and immigrant earnings: a penalized quantile panel regression analysis
Abstract:
Despite evidence that immigrants experience a higher incidence of over-education, relatively few studies have considered the labour market outcomes of over-education for immigrants. Using longitudinal data and penalized quantile panel regression, we inspect the earnings effects of job mismatches for immigrants in Australia. This first application of the method to this question addresses both individual and distributional heterogeneity. Results confirm divergent effects across the earnings distribution. Immigrants from non-English speaking countries experience lower earnings returns and a substantial earnings penalty of up to 25% from educational mismatched employment. However, in contrast to conventional findings of a penalty based on regression at the mean, at the highest earnings quantile, both Australian-born and immigrants from non-English speaking countries with a host country qualification receive earnings premiums of 2.7 and 11%, respectively, from years of over-education. We discuss the policy implications of this new result.
Journal: Applied Economics
Pages: 2771-2790
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869169
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869169
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Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2771-2790
Template-Type: ReDIF-Article 1.0
Author-Name: Leah Meissner
Author-X-Name-First: Leah
Author-X-Name-Last: Meissner
Author-Name: Aishwarya Rai
Author-X-Name-First: Aishwarya
Author-X-Name-Last: Rai
Author-Name: Kurt William Rotthoff
Author-X-Name-First: Kurt William
Author-X-Name-Last: Rotthoff
Title: The superstar effect in gymnastics
Abstract:
Tournament structures provide a unique opportunity to assess the factors that affect an agent’s decision-making. In this paper, we seek to determine the peer-effects of Simone Biles’ ‘superstar’ presence on her fellow competitors, both before and after her rise to dominance in 2013. Specifically, with our unique data, we can utilize both meet-level and athlete-level fixed effects on the athletes’ performances. We find that the gymnasts attempted more difficult routines in Biles’ weakest events. There is also evidence of support for the idea that risk taking changes when a superstar is present, showing how athletes change their approach to big events changes with and without a superstar. Lastly, we find that the standard for perfection in the sport has changed over time, which could be related to forms of judging bias.
Journal: Applied Economics
Pages: 2791-2798
Issue: 24
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869170
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869170
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Handle: RePEc:taf:applec:v:53:y:2021:i:24:p:2791-2798
Template-Type: ReDIF-Article 1.0
Author-Name: Sang Cheol Lee
Author-X-Name-First: Sang Cheol
Author-X-Name-Last: Lee
Author-Name: Jaemin Lim
Author-X-Name-First: Jaemin
Author-X-Name-Last: Lim
Title: Effects of CEO characteristics on the relationship between excess cash holdings and audit effort
Abstract:
This study examines not only the relationship between a firm’s excess cash holdings and audit effort but also the moderating effects of CEO characteristics on the relationship. Using a sample of non-financial listed Korean companies for 2000–2014, we find that excess cash holdings have a significant positive effect on the external audit effort in terms of audit fees and audit hours. In addition, we find that the effect of excess cash holdings on audit effort is stronger when: (1) the CEO is a non-owner manager, (2) the company belongs to a conglomerate business group and (3) the CEO is in the earlier years of her or his tenure.
Journal: Applied Economics
Pages: 2905-2929
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870653
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870653
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Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2905-2929
Template-Type: ReDIF-Article 1.0
Author-Name: Prasenjit Chakrabarti
Author-X-Name-First: Prasenjit
Author-X-Name-Last: Chakrabarti
Author-Name: Mohammad Shameem Jawed
Author-X-Name-First: Mohammad Shameem
Author-X-Name-Last: Jawed
Author-Name: Manish Sarkhel
Author-X-Name-First: Manish
Author-X-Name-Last: Sarkhel
Title: COVID-19 pandemic and global financial market interlinkages: a dynamic temporal network analysis
Abstract:
The present study investigates the changes in G20 stock market dynamics and their interlinkages in the aftermath of COVID-19. It utilizes the Detrended Cross-Correlation Analysis (DCCA) along with the network and complexity theories for detecting the contagion effect of the pandemic on the stock markets. We find that both advanced and emerging stock markets, departing from their pre-crisis structures, form a tightly coupled close community after the disease outbreak – except for China that distanced itself from the rest of the cohort. This indicates that COVID-19 has caused contagion in the global equity market, which has increased the risk to international portfolio diversification benefits. The adoption of the Network theory for contagion detection technique augments the detailed understanding of the structural changes and their interlinkages among the stock markets in a more comprehensive way.
Journal: Applied Economics
Pages: 2930-2945
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870654
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870654
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Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2930-2945
Template-Type: ReDIF-Article 1.0
Author-Name: Peijingran Yu
Author-X-Name-First: Peijingran
Author-X-Name-Last: Yu
Author-Name: Kenneth A. Couch
Author-X-Name-First: Kenneth A.
Author-X-Name-Last: Couch
Title: Work limiting health and divorce behaviour: a retrospective analysis with SIPP data
Abstract:
This study examines the influence of six work-limiting health conditions that appear to arrive largely unexpectedly for married men and women – cancer, carpal tunnel syndrome, deafness or serious trouble hearing, paralysis, thyroid trouble and tumour cyst or growth – on subsequent divorce. Using information contained in the 2004 Survey of Income and Program Participation, we select men and women who are once married and had no health conditions prior to the first marriage into the sample. We find that divorce behaviour is not explained by the onset of unexpected health conditions while it is closely related to the onset of the more predictable set of all health conditions. The patterns of response vary by race and ethnicity. The article contributes to the literature by providing a more detailed comparison between the effects of less predictable health conditions on subsequent divorce behaviour versus the average effect of any work-limiting health problem.
Journal: Applied Economics
Pages: 2799-2831
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869166
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869166
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Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2799-2831
Template-Type: ReDIF-Article 1.0
Author-Name: Zhao Liu
Author-X-Name-First: Zhao
Author-X-Name-Last: Liu
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Yue-Jun Zhang
Author-X-Name-First: Yue-Jun
Author-X-Name-Last: Zhang
Author-Name: Chang-Xiong Qin
Author-X-Name-First: Chang-Xiong
Author-X-Name-Last: Qin
Title: The life cycle environmental rebound effect of battery electric vehicles in China: a provincial level analysis
Abstract:
In China, the promotion of electric vehicles is now in full swing, which is useful for carbon emission reduction. However, the rebound effect has a negative impact on the emissions reduction. In this regarding, through employing the three-stage linear approximation of the almost ideal demand system (LA-AIDS) model, well-to-wheel (WTW) method and input-output analysis (IOA) method, this article investigates the life cycle environment rebound effect (REC) of battery electric vehicles (BEVs) for 30 China’s provinces in three years, namely 2010, 2012 and 2015. The change of the REC to the variation of the cost of BEVs and the consumption expenditure is discussed as well. The estimation results indicate that the direct REC of BEVs in China ranges from 3% to 107%, while the indirect REC mainly fluctuates between −227% and 155%. Also, there are tremendous interprovincial differences in the REC of BEVs. The significant backfire effect can be found in these provinces, including Xinjiang, Qinghai, Jilin, Heilongjiang, Gansu, and Ningxia, while some provinces show super conservation effects. As for sensitivity analysis, this article indicates that the direct REC is negatively correlated with the total cost and positively related with the consumption expenditure, while the indirect REC shows the converse result.
Journal: Applied Economics
Pages: 2888-2904
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870652
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870652
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Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2888-2904
Template-Type: ReDIF-Article 1.0
Author-Name: Yuanyuan Gu
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Gu
Author-Name: Jhorland Ayala Garcia
Author-X-Name-First: Jhorland
Author-X-Name-Last: Ayala Garcia
Title: Educational expenditure efficiency in China: the role of the governor’s characteristics
Abstract:
This article studies educational efficiency in Chinese provinces following a two-step approach. Specifically, we take advantage of the selecting pattern of local officials in China to investigate the relationship between governors’ characteristics and local government educational efficiency, which has been previously ignored in the literature. First, we use a robust order-m partial frontier approach to evaluate the efficiency of the Chinese provinces in the provision of education, which represents the main sector of expenditure for local governments. Second, we estimate the relationship between efficiency and the provinces’ observable characteristics, with a special focus on the governor’s characteristics. We consider economic, institutional, and demographic variables as non-discretionary inputs. Finally, we use the Spatial Lag of X (SLX) and Spatial Durbin Model (SDM) to evaluate the possible spatial interdependence in the educational efficiency between Chinese provinces. The results show that East region provinces are the most efficient in the provision of education, while the provinces in the West region are the least efficient. Moreover, the governor’s observable characteristics, such as age, education, and experience abroad, have a significant effect on educational efficiency.
Journal: Applied Economics
Pages: 2832-2847
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1869171
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869171
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Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2832-2847
Template-Type: ReDIF-Article 1.0
Author-Name: Christoph Meier
Author-X-Name-First: Christoph
Author-X-Name-Last: Meier
Author-Name: Lurion De Mello
Author-X-Name-First: Lurion
Author-X-Name-Last: De Mello
Author-Name: Fabian Kukla
Author-X-Name-First: Fabian
Author-X-Name-Last: Kukla
Title: Aggregate investor confidence, price momentum and asset pricing
Abstract:
This article applies a new measure of aggregate investor confidence to explain the well-established factors driving stock returns in the asset pricing literature and on momentum returns. The aggregate measure extracts feedback impulses from stock market data that affect aggregate investor confidence. We find that aggregate investor confidence is positively associated with the profitability of momentum strategies and Fama–French’s small minus big (SMB) factor, providing empirical evidence in line with prominent behavioural models. Using a sample of data for the United States from 1927 to 2019, aggregate investor confidence requires around 3 months to notably affect momentum returns and remains statisticallct 3y significant for up to 16 months. Additionally, investors trade more and tilt their preference towards small market capitalization and growth stocks when confidence is high.
Journal: Applied Economics
Pages: 2848-2864
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870650
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870650
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Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2848-2864
Template-Type: ReDIF-Article 1.0
Author-Name: Bertrand Candelon
Author-X-Name-First: Bertrand
Author-X-Name-Last: Candelon
Author-Name: Laurent Ferrara
Author-X-Name-First: Laurent
Author-X-Name-Last: Ferrara
Author-Name: Marc Joëts
Author-X-Name-First: Marc
Author-X-Name-Last: Joëts
Title: Global financial interconnectedness: a non-linear assessment of the uncertainty channel
Abstract:
The role of uncertainty in the global economy is now widely recognized by policy-makers but its specific effects on the international financial system are less understood. In this paper, we assess the impact of uncertainty fluctuations on the interconnectedness within the international system of equity prices. In this respect, we extend the measure of connectedness put forward by Diebold and Yilmaz by allowing for non-linear effects through the estimation of a non-linear Threshold VAR model whose regimes depend on the level on uncertainty. Results show that high uncertainty tends to generate more connectedness among equity indexes of a set of advanced and emerging countries. From an economic policy point of view, this result suggests that in the presence of high uncertainty, an adverse financial shock in a specific country is likely to propagate more widely and more strongly to the whole financial system. This result advocates for a close real-time monitoring of uncertainty measures.
Journal: Applied Economics
Pages: 2865-2887
Issue: 25
Volume: 53
Year: 2021
Month: 05
X-DOI: 10.1080/00036846.2020.1870651
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870651
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Handle: RePEc:taf:applec:v:53:y:2021:i:25:p:2865-2887
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Flores de Frutos
Author-X-Name-First: Rafael
Author-X-Name-Last: Flores de Frutos
Author-Name: Manuel León Navarro
Author-X-Name-First: Manuel
Author-X-Name-Last: León Navarro
Author-Name: Sofía Tirado Sarti
Author-X-Name-First: Sofía
Author-X-Name-Last: Tirado Sarti
Title: ‘Will the Spanish regions converge in a near future?’
Abstract:
GDP and Employment of small Spanish regions seem to be I(1) variables, while their corresponding Capital Stocks seem to be I(2) variables. This contrasts with the statistical properties of the same variables for the Spanish big regions, all being I(2). The paper relates these properties with the problems of convergence shown by many Spanish regions. Also, it highlights important implications for economic policy.
Journal: Applied Economics
Pages: 3043-3053
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1871585
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1871585
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Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:3043-3053
Template-Type: ReDIF-Article 1.0
Author-Name: Tongyu Wang
Author-X-Name-First: Tongyu
Author-X-Name-Last: Wang
Author-Name: Shangmei Zhao
Author-X-Name-First: Shangmei
Author-X-Name-Last: Zhao
Author-Name: Guangxiang Zhu
Author-X-Name-First: Guangxiang
Author-X-Name-Last: Zhu
Author-Name: Haitao Zheng
Author-X-Name-First: Haitao
Author-X-Name-Last: Zheng
Title: A machine learning-based early warning system for systemic banking crises
Abstract:
Econometricians construct panel logit-based early warning systems (EWSs) as the primary predictive tool to prevent incoming systemic banking crises. Considering the actual scenario of systemic banking crises, we argue that changes in economic indicators under the crisis may impact the information extraction of EWSs based on logistic regression. According to the potential limitations of the conventional EWS and properties of the machine learning algorithm, we assume that an ‘experts voting EWS’ framework can better fit characteristics of data of systemic banking crisis. Indeed, among other machine learning classifiers tested in this paper, random forest classifier simulating experts voting process is the most efficient classifier showing relatively high generalization above 80% area under the receiver operating characteristic curve on constructing the EWS. In contrast to the conventional system, an image of evidence shows that the experts voting EWS synthesizing multivariate information may be suitable for providing systemic banking systemic crises alerts in varied contexts.
Journal: Applied Economics
Pages: 2974-2992
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870657
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870657
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Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:2974-2992
Template-Type: ReDIF-Article 1.0
Author-Name: Idriss Fontaine
Author-X-Name-First: Idriss
Author-X-Name-Last: Fontaine
Title: Does wife’s labour supply influence labour force participation of her elderly husband? Lessons from France
Abstract:
Since the mid-1990s, the labour force participation of older men and women increased substantially in France. In this paper, we investigate the effect of having a participating wife on the labour market behaviour of her elderly husband. Working with data from the French Labour Force Survey and using the cohort-specific participation rate of women at age 40 as an instrument for their current participation, we find that the magnitude of the causal relationship is strong. The likelihood of husbands’ participation increases of about 19 points when their wives are currently active in the labour market. Such findings support the view that some complementarities in leisure exist so that French married men attribute a higher value to leisure when it is shared with their wife. It also suggests that policy makers should take into account both direct and indirect effects when they implement a change in the economic environment of elderly.
Journal: Applied Economics
Pages: 2946-2961
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870655
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870655
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Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:2946-2961
Template-Type: ReDIF-Article 1.0
Author-Name: David Winkelmann
Author-X-Name-First: David
Author-X-Name-Last: Winkelmann
Author-Name: Christian Deutscher
Author-X-Name-First: Christian
Author-X-Name-Last: Deutscher
Author-Name: Marius Ötting
Author-X-Name-First: Marius
Author-X-Name-Last: Ötting
Title: Bookmakers’ mispricing of the disappeared home advantage in the German Bundesliga after the COVID-19 break
Abstract:
The outbreak of COVID-19 in March 2020 led to a shutdown of economic activities in Europe. This included the sports sector since public gatherings were prohibited. The German Bundesliga was among the first sport leagues realizing a restart without spectators. Several recent studies suggest that the home advantage of teams eroded for the remaining matches. Our paper analyses the reaction by bookmakers to the disappearance of such home advantage. We show that bookmakers had problems to adjust the betting odds in accordance with the disappeared home advantage, opening opportunities for profitable betting strategies.
Journal: Applied Economics
Pages: 3054-3064
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1873234
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1873234
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Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:3054-3064
Template-Type: ReDIF-Article 1.0
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: Biliang Luo
Author-X-Name-First: Biliang
Author-X-Name-Last: Luo
Title: Do small farms prefer agricultural mechanization services? Evidence from wheat production in China
Abstract:
Developing agricultural mechanization services has been an important approach to pushing smallholder farmers engaging modern agricultural production in China. However, whether smallholder farmers prefer adopting agricultural mechanization services is still under-analysed. In this paper, we use data covering 3,440 wheat farmers collected from Henan province in China to investigate the links between farm size and the adoption of agricultural mechanization services. The results indicate that an inverted U-shaped relationship between farm size and the adoption of agricultural mechanization services exists. We also find that small farms can input more family labour, and large farms tend to invest in self-owned machinery assets. Our analysis implies that the development of agricultural mechanization services is not inevitable to attract farmers with alternative elements, and smallholder farmers may not be the major groups involved in the market of social services in agriculture in the future.
Journal: Applied Economics
Pages: 2962-2973
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870656
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870656
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Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:2962-2973
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Hoesli
Author-X-Name-First: Martin
Author-X-Name-Last: Hoesli
Author-Name: Elias Oikarinen
Author-X-Name-First: Elias
Author-X-Name-Last: Oikarinen
Title: Does listed real estate behave like direct real estate? Updated and broader evidence
Abstract:
This study investigates a question relevant to many investors: do the broad Real Estate Investment Trust (REIT) return characteristics reflect those of the broad direct real estate markets. The paper makes several contributions to the literature in addition to using more recent data: (1) we use data for six countries (Australia, France, Germany, Netherlands, the U.K., and the U.S.); (2) we estimate both country-specific and panel models to increase the reliability and generalizability of the analysis; (3) we estimate a structural vector autoregressive model to be able to better and more reliably interpret the various shocks in the system; and (4) we investigate the effects of global liquidity shocks, among other shocks. Our results indicate that over the mid to long horizon, broad REIT and direct returns have similar characteristics and are highly correlated at the panel level. Also, the two types of exposure to real estate exhibit similar reactions to economic shocks. Thus, the paper makes a case that investors do not necessarily need to worry much about compositional effects when aiming to track broad international direct market performance by investing in listed real estate.
Journal: Applied Economics
Pages: 3023-3042
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870921
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870921
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Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:3023-3042
Template-Type: ReDIF-Article 1.0
Author-Name: Bing Tong
Author-X-Name-First: Bing
Author-X-Name-Last: Tong
Author-Name: Guang Yang
Author-X-Name-First: Guang
Author-X-Name-Last: Yang
Title: Interest rate fixation, excessive fluctuations and exchange rate management in China
Abstract:
This article proves in a New Keynesian model that interest rate fixation can explain ChinaŠs excessive business cycle fluctuations. The fixed nominal interest rate changes the propagation of external shocks, magnifies volatility of endogenous variables, and leads to economic instability. We then extend the model to a small open economy featuring capital controls, sterilized interventions and a managed exchange rate to capture the main characteristics of the Chinese economy. We prove that the magnifying effect of interest rate fixation holds in such an environment, but this effect diminishes with a more strictly managed exchange rate.
Journal: Applied Economics
Pages: 2993-3022
Issue: 26
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1870920
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1870920
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Handle: RePEc:taf:applec:v:53:y:2021:i:26:p:2993-3022
Template-Type: ReDIF-Article 1.0
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Mabruk Billah
Author-X-Name-First: Mabruk
Author-X-Name-Last: Billah
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Anne De Bruin
Author-X-Name-First: Anne
Author-X-Name-Last: De Bruin
Title: Spillovers to sectoral equity returns: do liquidity and financial positions matter?
Abstract:
In this paper, we investigate spillovers from regional and global equity markets to sectoral equity indices for several different regions/countries. First, we investigate the connectedness of sectoral equity return spillovers and explore the different patterns and magnitudes of spillovers. Next, we look for the determinants of sectoral equity return spillovers. We find the regional and global markets spillovers on sector equity indices are highly dispersed across different markets. Novel to the literature, we examine the liquidity and financial positions of the sectors and find that sector positions are highly influential in explaining the extent of the spillovers. Particularly, our exploration evidence that regional and global spillovers to specific sector equity markets jump significantly when a sector has higher debt and lower interest expense coverage. Similarly, higher profit margins of the sector make it less vulnerable to global and regional shocks. We also find market capitalization of the sectors inversely affects the extent of the spillovers originating from global and regional markets.
Journal: Applied Economics
Pages: 3097-3130
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1875120
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1875120
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Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3097-3130
Template-Type: ReDIF-Article 1.0
Author-Name: Iwanthika Rajakaruna
Author-X-Name-First: Iwanthika
Author-X-Name-Last: Rajakaruna
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Author-Name: Nelson Perera
Author-X-Name-First: Nelson
Author-X-Name-Last: Perera
Title: On public debt and twin imbalances in the South Asian region
Abstract:
This paper studies the impact of a country’s public debt on its twin deficits. Using panel data of five South Asian countries characterized by acute twin deficits and a high debt-to-GDP ratio for 1980–2018, we find no evidence that the budget balance wields a statistically significant impact on the current account. When the relationship between fiscal and current account deficits is conditioned on public debt levels, we find a statistically significant non-linear twin deficits relationship. For low-to-moderate debt countries with debt ratios between 46.21% and 65.80% of GDP a fiscal deficit, increase leads to a lower current account deficit. For high debt countries (i.e. debt-to-GDP ratio is above 65.80%), a rising fiscal deficit results in a larger current account deficit. Maintaining a sustainable debt-to-GDP ratio of 65.80% or lower is crucial for reducing both fiscal deficits and current account imbalances.
Journal: Applied Economics
Pages: 3080-3096
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1875119
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1875119
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Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3080-3096
Template-Type: ReDIF-Article 1.0
Author-Name: Vincent Fromentin
Author-X-Name-First: Vincent
Author-X-Name-Last: Fromentin
Title: Cross-border workers in the Greater Region of Luxembourg and financial instability: a non-linear approach
Abstract:
This article aims to study the interactions between cross-border workers from the Greater Region of Luxembourg (compared to resident workers) and financial instability. Luxembourg, located in the heart of the Greater Region, is a major international financial centre, one of the most significant aspects of which is the phenomenon of cross-border or commuting work. Interrelationships between financial fluctuations, the real economy and employment seem to operate especially in times of crisis or post-crisis, and to affect more particularly cross-border workers, whose recruitment is facilitated by service and financial intermediation companies. We propose to evaluate these interrelationships with an asymmetric non-linear ARDL (Auto Regressive Distributive Lags) staggered delay autoregressive model, which validates the predictive power of financial indicators to explain fluctuations in cross-border and resident workers.
Journal: Applied Economics
Pages: 3171-3192
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877251
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877251
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Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3171-3192
Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: Is the moral hazard in the Chinese labour market serious? Empirical evidence from a semi-parametric analysis
Abstract:
In this study, we extend the principal-agent model of moral hazard by incorporating different percentage effort choices made by the manager. Applying the semi-parametric estimation method, we estimate an extended principal-agent model of moral hazard using longitudinal data on firms and managerial compensation collected from the China Center for Economic Research database. The estimated compensation contracts confirm the non-neglected conflicts between management and shareholders, especially for managers in non-CEO or lower positions and in medium or large firms. Moral hazard is serious in large firms in the natural resources and manufacturing, as well as commercial product industries. Most managers’ compensation in these firms can not induce more than $$60\% $$60% effort.
Journal: Applied Economics
Pages: 3131-3170
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1875121
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1875121
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Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3131-3170
Template-Type: ReDIF-Article 1.0
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Title: The relationship between the Covid-19 media coverage and the Environmental, Social and Governance leaders equity volatility: a time-frequency wavelet analysis
Abstract:
We apply wavelet analyses to study how the social media coverage of the Covid-19 pandemic influenced the volatility of ESG (Environmental, Social and Governance) leaders indices encompassing World, USA, Europe, China, and Emerging Markets. We document intervals of low, medium, and high coherence between the Media Coverage Index and the price moves of the ESG Leaders indices. The low coherence intervals indicate the diversification potential of ESG investments during a systemic pandemic such as Covid-19. We document differences in the pattern exhibited by various geographical indices evidencing their potential role for designing cross-geography hedge strategies.
Journal: Applied Economics
Pages: 3193-3206
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877252
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877252
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Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3193-3206
Template-Type: ReDIF-Article 1.0
Author-Name: Tianheng Wang
Author-X-Name-First: Tianheng
Author-X-Name-Last: Wang
Title: The effect of female education on child mortality: evidence from Indonesia
Abstract:
This paper examines the effect of female education on child mortality in Indonesia by exploiting a one-time change in the length of the 1978 school year as a source of exogenous variation in education. The results show that the education reform increases women’s educational attainment by 0.76 years and that one additional year of female education leads to a decrease in neonatal mortality by 0.5 percentage points. Mechanism analysis suggests that higher female education postpones the timing of marriage and of first birth, leads to higher quality of spouse and higher household wealth and increases the use of prenatal health care and mass media. However, I do not find significant impacts of female education on women’s empowerment in the household.
Journal: Applied Economics
Pages: 3207-3222
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877253
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877253
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Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3207-3222
Template-Type: ReDIF-Article 1.0
Author-Name: Lu Huang
Author-X-Name-First: Lu
Author-X-Name-Last: Huang
Author-Name: Lihua Wang
Author-X-Name-First: Lihua
Author-X-Name-Last: Wang
Author-Name: Zhusheng Liu
Author-X-Name-First: Zhusheng
Author-X-Name-Last: Liu
Author-Name: Yujie Li
Author-X-Name-First: Yujie
Author-X-Name-Last: Li
Title: Evolutionary game analysis of green industry development in the age of sharing economy
Abstract:
Sharing economy is also a kind of green economy in essence, which brings opportunities for the development of resource-sharing green industry. By constructing a general evolutionary game model of green industry, the evolutionary stability strategy of green industry system is obtained, and the internal mechanism of the spontaneous evolution of green industry is explained. Furthermore, by comparing the evolutionary game model and numerical simulation results of two green industry development models of factor input and resource sharing in the era of sharing economy, it is found that compared with the factor input development model, the resource-sharing development model is easier to realize the evolutionary game equilibrium between enterprises and consumers. Enriching government subsidies and strengthening consumer guide will help promote the development of resource-sharing green industry.
Journal: Applied Economics
Pages: 3065-3079
Issue: 27
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1874609
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1874609
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Handle: RePEc:taf:applec:v:53:y:2021:i:27:p:3065-3079
Template-Type: ReDIF-Article 1.0
Author-Name: Ludivine Martin
Author-X-Name-First: Ludivine
Author-X-Name-Last: Martin
Author-Name: Uyen T. Nguyen-Thi
Author-X-Name-First: Uyen T.
Author-X-Name-Last: Nguyen-Thi
Author-Name: Caroline Mothe
Author-X-Name-First: Caroline
Author-X-Name-Last: Mothe
Title: Human resource practices, perceived employability and turnover intention: does age matter?
Abstract:
This paper investigates the age specificities in the link between employee’s perceived external employability and turnover intention and how the use of human resource practices moderates this relationship. Results show that the use of motivation-enhancing HR practices induces a larger retention effect for younger and middle-aged employees than for older ones, whereas the turnover intention effects of flexibility-enhancing HR practices are stronger for the middle-age and older groups than for the younger groups. Moreover, the use of HR practices that stimulate employees’ motivation, such as training, participation, voice and teamwork, plays a stronger role in retaining highly employable younger employees, while the use of HR practices that offer flexibility, such as flexible working time, teleworking and work-life balance, enables retaining highly employable older employees.
Journal: Applied Economics
Pages: 3306-3320
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1886238
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1886238
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Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3306-3320
Template-Type: ReDIF-Article 1.0
Author-Name: Dietrich Earnhart
Author-X-Name-First: Dietrich
Author-X-Name-Last: Earnhart
Author-Name: Donna Ramirez Harrington
Author-X-Name-First: Donna Ramirez
Author-X-Name-Last: Harrington
Title: Effects of audit frequency, audit quality, and facility age on environmental compliance
Abstract:
This study explores the effect of environmental self-audits (‘audits’), which represent an important type of environmental management system practice, on the extent of facilities’ compliance with wastewater discharge limits. Previous studies of environmental audits explore either the presence or frequency of audits only, while ignoring the quality of audits and heterogeneous effects across facility types. Our study contributes to the economic literature by examining the role of audit quality, as measured by the comprehensiveness of the audit protocol, and the influence of facility age on the effectiveness of more frequent auditing. These two features prove important especially in combination. Our study empirically examines the U.S. chemical manufacturing sector using survey and publicly available EPA data. Empirical results reveal that more frequent audits improve the extent of compliance but only for older facilities and only when these facilities conduct high quality audits. In contrast, for newer facilities, more frequent high quality audits fail to improve compliance; worse yet, more frequent low quality audits sadly undermine compliance. Both sets of results are consistent with our hypotheses.
Journal: Applied Economics
Pages: 3234-3252
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1854449
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1854449
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Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3234-3252
Template-Type: ReDIF-Article 1.0
Author-Name: Kazuaki Okamura
Author-X-Name-First: Kazuaki
Author-X-Name-Last: Okamura
Author-Name: Nizamul Islam
Author-X-Name-First: Nizamul
Author-X-Name-Last: Islam
Title: Effects of the timing of childbirth on female labor supply: an analysis using the sequential matching approach
Abstract:
This study estimates the effects of childbirth on female labour supply using Japanese data. The original contributions of our study are twofold. First, we include the preference for having children as a time-varying confounding variable in the effects of childbirth on female labour supply. Second, we apply a dynamic version of the sequential matching approach to analyse the causal effects of childbirth on female labour market outcomes. The results show that childbirth decreases current employment outcomes (participation as regular and non-regular workers) and that this decrease is more pronounced among regular workers than non-regular workers. At the time of childbirth, while the negative effects of childbirth on choosing regular work increase when childbirth age is delayed, the negative effects on choosing non-regular work are slightly decreased by delaying the age of childbirth. Regarding future employment outcomes, childbirth does not affect the probability of choosing non-regular work in the next period, regardless of childbirth age. In contrast, delayed childbirth decreases the probability of choosing regular work in the next period significantly.
Journal: Applied Economics
Pages: 3253-3266
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1855320
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855320
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Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3253-3266
Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Nan Wang
Author-X-Name-First: Chia-Nan
Author-X-Name-Last: Wang
Author-Name: Min-Chun Yu
Author-X-Name-First: Min-Chun
Author-X-Name-Last: Yu
Author-Name: Nguyen-Nhu-Y Ho
Author-X-Name-First: Nguyen-Nhu-Y
Author-X-Name-Last: Ho
Author-Name: Thi-Nham Le
Author-X-Name-First: Thi-Nham
Author-X-Name-Last: Le
Title: An integrated forecasting model for the coffee bean supply chain
Abstract:
Coffee is the most traded commodity after petroleum. The Vietnamese coffee bean industry has raised concerns lately over an inefficient coffee value chain; bets on coffee price uncertainty are increasing worldwide in the current. Accurate optimization of coffee bean prices helps manufacturers to control an unpredictable market and upgrade cooperativeness in sustainable agriculture. The authors proposed a forecasting method to deal with demand volatility and uncertainty in volumes and coffee bean prices. In this paper, we applied the forecasting nonlinear grey Bernoulli model (NGBM) (1,1). NGBM (1,1), which is based on the parameter optimization algorithm, can increase the precision of predictions. NGBM (1,1) was integrated with Fourier residual modification model to forecast coffee bean price, which was a crucial factor in the Vietnamese coffee bean supply chain. The price of coffee beans was calculated using a differential equation in an uncertain system, along with actual data collected over the past six years. The results of this study demonstrate that an integrated forecasting model is an effective forecasting method. This research can help companies to control risks that come with uncertain coffee prices and reduce risks in the sustainable agriculture supply chain.
Journal: Applied Economics
Pages: 3321-3333
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1887447
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1887447
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Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3321-3333
Template-Type: ReDIF-Article 1.0
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Zhongqingyang Zhang
Author-X-Name-First: Zhongqingyang
Author-X-Name-Last: Zhang
Author-Name: Yuan Huang
Author-X-Name-First: Yuan
Author-X-Name-Last: Huang
Author-Name: Weifang Mao
Author-X-Name-First: Weifang
Author-X-Name-Last: Mao
Title: Quantile heterogeneous impact of R&D on firm growth in Chinese manufacture: how ownership, firm size and sectors matter?
Abstract:
This paper explores the heterogeneous impact of R&D on firm growth in Chinese manufacturing industry during the periods 2012–2017. We divide the full sample into sub-samples according to different ownership, firm size and sectors, respectively, which help comprehensive observe the impact of R&D on firm growth. The results indicate that R&D has a significant positive impact on firm growth, and that R&D of private enterprises has a greater impact on firm growth than that of state-owned enterprises across all quantiles. Moreover, we find the R&D effectiveness of non-small and medium-sized enterprises is significantly greater than that of SMEs. Additionally, persuasive evidence proves the existence of an inverted-U relationship between R&D and firm growth, except for higher-growth state-owned SMEs. The results also indicate that R&D plays a more significantly positive role in high-tech industries. Our finding suggests that policymakers should encourage R&D investment in manufacturing industry to promote firm growth. But policymaker must classify firms, observe R&D intensity turning points of firms with different types, formulate meticulous R&D strategies, and maximize R&D utility.
Journal: Applied Economics
Pages: 3267-3287
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1873235
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1873235
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Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3267-3287
Template-Type: ReDIF-Article 1.0
Author-Name: Zhengxun Tan
Author-X-Name-First: Zhengxun
Author-X-Name-Last: Tan
Author-Name: Juan Liu
Author-X-Name-First: Juan
Author-X-Name-Last: Liu
Author-Name: Peng Chen
Author-X-Name-First: Peng
Author-X-Name-Last: Chen
Title: The trend and cycle components of China’s housing prices: a new decomposition method
Abstract:
The paper proposes a novel hybrid method that extends previous work incorporating the fractionally cointegrated vector autoregressive and the permanent-transitory decomposition model. Using the hybrid method, we investigate whether the rapid rise in China’s housing prices is a trend or cyclical fluctuation as well as whether there exists a housing price bubble. The findings indicate there exists a fractional cointegration relationship between housing prices and macroeconomic fundamentals in China, and that the fundamental value of housing prices is determined by macroeconomic factors. In particular, the upward trend in China’s housing prices has shifted and decelerated since 2012, in line with GDP and money supply. Moreover, we provide evidence of the existence of a housing price bubble in China since 2012, particularly during the 2015–2018 period. We demonstrate that the hybrid model has a superior forecasting performance and decomposes the trend and cycle components more accurately than the conventional methods when estimating a system of possibly fractional cointegration relationship.
Journal: Applied Economics
Pages: 3288-3305
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877254
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877254
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Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3288-3305
Template-Type: ReDIF-Article 1.0
Author-Name: Jying-Nan Wang
Author-X-Name-First: Jying-Nan
Author-X-Name-Last: Wang
Author-Name: Hung-Chun Liu
Author-X-Name-First: Hung-Chun
Author-X-Name-Last: Liu
Author-Name: Shuang Zhang
Author-X-Name-First: Shuang
Author-X-Name-Last: Zhang
Author-Name: Yuan-Teng Hsu
Author-X-Name-First: Yuan-Teng
Author-X-Name-Last: Hsu
Title: How does the informed trading impact Bitcoin returns and volatility?
Abstract:
This study employed an augmented AR-GJRGARCH model that incorporates an intraday-based buy-sell order size imbalance measure to explore how informed trading behaviour/activity impacted Bitcoin returns and volatility from January 2014 to February 2019. Our results show that the informed trading behaviour dominated by sell-order significantly led to decreased concurrent Bitcoin returns for alternative sample periods. However, the informed trading behaviour dominated by buy-order related positively to Bitcoin returns only for the full sample period. Moreover, the informed trading activity helped to reduce Bitcoin’s volatility, which is consistent with expectations based on dispersion of beliefs models. Finally, we uncovered a positive (inverted) asymmetric volatility effect for both the full and the rising sample periods, indicating the presence of the ‘fear of missing out’ psychological effect.
Journal: Applied Economics
Pages: 3223-3233
Issue: 28
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2020.1814944
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1814944
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Handle: RePEc:taf:applec:v:53:y:2021:i:28:p:3223-3233
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Kalb
Author-X-Name-First: Alexander
Author-X-Name-Last: Kalb
Author-Name: Benny Geys
Author-X-Name-First: Benny
Author-X-Name-Last: Geys
Author-Name: Friedrich Heinemann
Author-X-Name-First: Friedrich
Author-X-Name-Last: Heinemann
Title: Value for money? German local government efficiency in a comparative perspective
Abstract:
In this article, we investigate the cost efficiency of German local governments in the state of Baden-Württemberg in 2004 using a stochastic frontier approach. Besides being the first study on German data, we add two elements to the literature. First, we provide a comparative perspective, allowing us to embed our results in the broader literature. Second, unlike most previous studies, we explicitly account for exogenous or nondiscretionary influences when estimating municipal efficiency scores. The results suggest that disregarding such exogenous factors can lead to significant and systematic bias in the estimated inefficiency levels. Particularly, underestimation of efficiency occurs for municipalities with high tourist activity, while the reverse is true for municipalities with high unemployment.
Journal: Applied Economics
Pages: 201-218
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502110
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502110
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:201-218
Template-Type: ReDIF-Article 1.0
Author-Name: José Cuesta
Author-X-Name-First: José
Author-X-Name-Last: Cuesta
Author-Name: Camilo Bohórquez
Author-X-Name-First: Camilo
Author-X-Name-Last: Bohórquez
Title: Soccer and national culture: estimating the impact of violence on 22 lads after a ball
Abstract:
Sports have been recently conceptualized as an effective tool for development. Questioning that argument, recent evidence suggests that the practice of soccer reveals national cultures of violence prevailing in players’ countries of origin. We model violent behaviour in the soccer pitch as a function of game specific controls as well as socioeconomic, political, cultural and conflict variables characterizing players’ home countries. We construct a database for the Latin American 2008 Libertadores Cup Competition and find that across multiple specifications and estimating techniques, only game specific variables determine sanctions to violent actions. There are three compatible explanations for this result: highly skilled soccer players may not be representative average citizens; violent conflicts may not necessarily cause a violent culture affecting all corners of society; and even when violent cultures are transmitted to individual players, those values do not condition significantly their behaviour during games. After all, sports may not be a pernicious activity that intrinsically transmits violent values to youths.
Journal: Applied Economics
Pages: 147-161
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500275
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500275
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:147-161
Template-Type: ReDIF-Article 1.0
Author-Name: Luis E. Arango
Author-X-Name-First: Luis E.
Author-X-Name-Last: Arango
Author-Name: Fernando Arias
Author-X-Name-First: Fernando
Author-X-Name-Last: Arias
Author-Name: Adriana Flórez
Author-X-Name-First: Adriana
Author-X-Name-Last: Flórez
Title: Determinants of commodity prices
Abstract:
A panel of annual information between 1960 and 2006 for approximately 50 different commodity prices and some other variables and sources is used to tests the determinants of commodity prices. According to the evidence, interest rates seem to maintain a negative relationship with commodity prices.
Journal: Applied Economics
Pages: 135-145
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500273
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500273
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:135-145
Template-Type: ReDIF-Article 1.0
Author-Name: Antonios Georgopoulos
Author-X-Name-First: Antonios
Author-X-Name-Last: Georgopoulos
Author-Name: Kostas Karamanis
Author-X-Name-First: Kostas
Author-X-Name-Last: Karamanis
Title: The implications of the liberalization in telecommunication markets for market structure and price policy: evidence from a small open economy
Abstract:
This study analyses the impact of liberalization on market structure and pricing in the Greek telecommunication market from 1992 to 2005. The data refers to 44 of the most prominent companies of fixed telephony, mobile telephony and internet services and was compiled by means of interviews with the help of a questionnaire. Our descriptive analysis concluded that liberalization of the telecommunication market reduced its concentration degree, increased competition and induced price cuts. This conclusion is supported by other research studies concerning other countries of the EU, since Greece as an EU member country has also implemented the respective European policy in the specific industry. As far as the econometric level is concerned, we used panel Feasible Generalized Least Squares (FGLS). FGLS is an appropriate tool for samples such as our own, composed by intersectoral data that extend to more than one time periods, and without correlation between the unobserved effects and the interpretative variables. Our econometric research showed that both private ownership and specialized personnel in the commercial and technical sector seem to positively influence the companies' market share. In turn, a large market share offers companies more freedom to cut down prices in their services. However, there is still considerable need for econometric research in this field.
Journal: Applied Economics
Pages: 253-263
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.505556
File-URL: http://hdl.handle.net/10.1080/00036846.2010.505556
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:253-263
Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Dong Lee
Author-X-Name-First: Ki-Dong
Author-X-Name-Last: Lee
Author-Name: Seok-Joon Hwang
Author-X-Name-First: Seok-Joon
Author-X-Name-Last: Hwang
Author-Name: Min-hwan Lee
Author-X-Name-First: Min-hwan
Author-X-Name-Last: Lee
Title: Agglomeration economies and location choice of Korean manufacturers within the United States
Abstract:
Employing the micro data for 1997–2004, we investigate the location decision of Korean-affiliated manufacturing investments in the United States. The conditional logit estimates confirm that although industry-specific Korean agglomeration and domestic agglomeration play an important role, the Foreign Direct Investment (FDI) location is more sensitively affected by the interstate difference in endowment conditions than by the same nationality agglomeration. Both business service and intermediate good agglomeration are main determinants of FDI location. Furthermore, estimation results show substantial change in the location pattern after recovery from the Asian financial crisis. We find quite different patterns of location decision across industry groups; dispersion forces work greater than the agglomeration force in the consumer goods industry, forward linkages with US upstream firms can be seen in the assembly and processing industry, and typical follow-the-leader pattern mixed with market potential effect by Korean immigrants is seen in the basic material manufacturing industry.
Journal: Applied Economics
Pages: 189-200
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502109
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502109
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:189-200
Template-Type: ReDIF-Article 1.0
Author-Name: Bernhard Michel
Author-X-Name-First: Bernhard
Author-X-Name-Last: Michel
Author-Name: François Rycx
Author-X-Name-First: François
Author-X-Name-Last: Rycx
Title: Does offshoring of materials and business services affect employment? Evidence from a small open economy
Abstract:
The fear of massive job losses has prompted a fast-growing literature on offshoring and its impact on employment in advanced economies. This article examines the situation for Belgium. It improves the offshoring intensity measure by computing a volume measure of the share of imported intermediates in output, and it is among the first to address both materials and business services offshoring to high wage and low wage countries. Estimations of static and dynamic industry-level labour demand equations augmented by offshoring intensities do not reveal a significant impact of either materials or business services offshoring on total employment for Belgium between 1995 and 2003. This result holds for both the manufacturing sector and the service sector and it proves robust to splitting the manufacturing sector into high technology and low technology industries.
Journal: Applied Economics
Pages: 229-251
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.503932
File-URL: http://hdl.handle.net/10.1080/00036846.2010.503932
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:229-251
Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Stephan Popp
Author-X-Name-First: Stephan
Author-X-Name-Last: Popp
Title: A nonlinear approach to testing the unit root null hypothesis: an application to international health expenditures
Abstract:
In this article, we examine the unit root null hypothesis for per capita total Health Expenditures (HEs), per capita private HEs and per capita public HEs for 29 Organization for Economic Co-operation and Development (OECD) countries. The novelty of our work is that we use a new nonlinear unit root test that allows for one structural break in the data series. We find that for around 45% of the countries, we are able to reject the unit root hypothesis for each of the three HE series. Moreover, using Monte Carlo simulations, we show that our proposed unit root model has better size and power properties than the widely used Augmented Dickey–Fuller (ADF) and Lagrange Multiplier (LM) type tests.
Journal: Applied Economics
Pages: 163-175
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500276
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500276
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:163-175
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Bowles
Author-X-Name-First: Roger
Author-X-Name-Last: Bowles
Author-Name: Chrisostomos Florackis
Author-X-Name-First: Chrisostomos
Author-X-Name-Last: Florackis
Title: Impatience, reputation and offending
Abstract:
Reconviction rates for offenders are high despite sentence severity increasing with the number of convictions. The standard one-shot model of crime provides little scope for exploring ‘persistence effects’, although recent papers by Emons and others have sought to put offending decisions into a more dynamic setting. This article develops a simple two-period model of offending in which criminal convictions act as an adverse signal in labour markets. Ordinary and multinomial logistic regression modelling is used to test the predictions of the theoritical model and explore the link between unemployment and convictions. The empirical results, which are based on longitudinal data from the National Child Development Study (NCDS) in the UK, strongly support the view that, ceteris paribus, individuals with previous convictions are at higher risk of being unemployed.
Journal: Applied Economics
Pages: 177-187
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.500277
File-URL: http://hdl.handle.net/10.1080/00036846.2010.500277
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:177-187
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Rosenman
Author-X-Name-First: Robert
Author-X-Name-Last: Rosenman
Author-Name: Scott Goates
Author-X-Name-First: Scott
Author-X-Name-Last: Goates
Author-Name: Laura Hill
Author-X-Name-First: Laura
Author-X-Name-Last: Hill
Title: Participation in universal prevention programmes
Abstract:
We analyse family decisions to participate in community-based universal substance-abuse prevention programmes through the framework of expected utility theory. Family functioning, which has been shown to be a good indicator of child risk for substance abuse, provides a useful reference point for family decision making. Our results show that well-functioning families (with children at low risk for substance use) should have the lowest incentive to participate, but that high-risk families may also opt out of prevention programmes. For programmes that are most effective for high-risk youth, this could be a problem. Using data from the Strengthening Families Programme (SFP) and the Washington Healthy Youth Survey (HYS), we empirically test the implications of our model and find that at least for one measure of family functioning those families with children most likely to be at risk for substance use are opting out of the programme.
Journal: Applied Economics
Pages: 219-228
Issue: 2
Volume: 44
Year: 2012
Month: 1
X-DOI: 10.1080/00036846.2010.502111
File-URL: http://hdl.handle.net/10.1080/00036846.2010.502111
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Handle: RePEc:taf:applec:v:44:y:2012:i:2:p:219-228
Template-Type: ReDIF-Article 1.0
Author-Name: María Belén Lozano
Author-X-Name-First: María Belén
Author-X-Name-Last: Lozano
Title: Analysing the effect of excess cash accumulation on financial decisions
Abstract:
In this current moment of crisis it is very important for firms to hold a suitable amount of cash. But it is also very important to analyse how this amount of cash affects firm value. Here an in-depth study is made of the determination of firm value centring our attention on the problem of excess cash accumulation. This article adds important value to the existing literature since, employing the panel data methodology in the sample of Spanish nonfinancial firms, it identifies whether excess cash holding affects firm value in general, and investment, financing and dividend decisions in particular. The results show how asymmetric information among the economic agents of the firm affects the cash reserves. In particular, shareholders could penalize the investment made by these firms and consider the positive effect that the debt in particular and the dividend policies exert on the firm. Moreover, the results reveal the importance of financial flexibility as opposed to the arguments provided by agency theory.
Journal: Applied Economics
Pages: 2687-2698
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566195
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566195
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2687-2698
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobo Wu
Author-X-Name-First: Xiaobo
Author-X-Name-Last: Wu
Author-Name: Yanbin Jiang
Author-X-Name-First: Yanbin
Author-X-Name-Last: Jiang
Title: Sectoral role change in transition China: a network analysis from 1990 to 2005
Abstract:
In this article, by using the data collected from input–output table, we conduct a detailed investigation on the evolution pattern during economy development of China from 1990 to 2005. By using network analysis at national, cluster and individual level, we find some interesting insights, also in order to identify the difference between cluster levels, we proposed a cluster centralization method to analyse the role of the cluster in the network. This study shows that during the transition process of China, there exist some similarity and differences in each selected time. Each period studied have some similar distributions of key sectors, including the cores, i.e. chemical industry, nonmetallic mineral products, construction, business. However, significant differences also exists, for example, the 2005 system is characterized as higher degrees of systemic connection and hierarchy, while the 1990s system has looser density and less centralization. Additionally, the high tech clusters (i.e. electronics and instruments) including high tech industry (i.e. electronics and telecommunications equipment manufacturers) has played a much more important role in 2005 than that in early 1990s. Also the high tech cluster and service cluster have contributed a lot to the transition and development of the whole country, the results also confirm that some theory concluded from developed country can also applied to developing economies such as China.
Journal: Applied Economics
Pages: 2699-2715
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566196
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566196
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2699-2715
Template-Type: ReDIF-Article 1.0
Author-Name: Oluyemisi Kuku
Author-X-Name-First: Oluyemisi
Author-X-Name-Last: Kuku
Author-Name: Steven Garasky
Author-X-Name-First: Steven
Author-X-Name-Last: Garasky
Author-Name: Craig Gundersen
Author-X-Name-First: Craig
Author-X-Name-Last: Gundersen
Title: The relationship between childhood obesity and food insecurity: a nonparametric analysis
Abstract:
Childhood obesity and food insecurity are major public health concerns in the United States and other developed countries. Research on the relationship between the two has provided mixed results across a variety of data sets and empirical methods. Common throughout this research, however, is the use of parametric frameworks for empirical analyses. This study moves beyond parametric methods by examining the relationship between childhood obesity and food insecurity among low-income children with nonparametric regression techniques. We examine data from the Child Development Supplement (CDS) of the Panel Study of Income Dynamics (PSID), a nationally representative data set from the US. Consistent with recent work, our parametric analyses indicate that there is no statistically significant relationship between childhood obesity and food insecurity. In contrast, our nonparametric results indicate that the probability of being obese varies markedly with the level of food insecurity being experienced by the child. Moreover, this relationship differs across relevant subgroups including those defined by gender, race/ethnicity and income. Fully understanding the relationship between childhood obesity and food insecurity has significant policy implications.
Journal: Applied Economics
Pages: 2667-2677
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566192
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566192
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2667-2677
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Christoph Ruelke
Author-X-Name-First: Jan Christoph
Author-X-Name-Last: Ruelke
Author-Name: Christian Pierdzioch
Author-X-Name-First: Christian
Author-X-Name-Last: Pierdzioch
Author-Name: Georg Stadtmann
Author-X-Name-First: Georg
Author-X-Name-Last: Stadtmann
Title: On the internal consistency of short-term, medium-term and long-term oil price forecasts
Abstract:
We derive internal consistency restrictions on short-, medium- and long-term oil price forecasts. We then analyse whether oil price forecasts extracted from the Survey of Professional Forecasters (SPF) conducted by the European Central Bank (ECB) satisfy these internal consistency restrictions. We find that neither short-term forecasts are consistent with medium-term forecasts nor that medium-term forecasts are consistent with long-term forecasts. Using a more complex expectation formation structure featuring a distributed lag structure, however, we find stronger evidence of internal consistency of medium-term forecasts with long-term forecasts.
Journal: Applied Economics
Pages: 2757-2765
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566201
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566201
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2757-2765
Template-Type: ReDIF-Article 1.0
Author-Name: Kishor Sharma
Author-X-Name-First: Kishor
Author-X-Name-Last: Sharma
Author-Name: Pemasiri J. Gunawardana
Author-X-Name-First: Pemasiri J.
Author-X-Name-Last: Gunawardana
Title: The role of price and nonprice factors in predicting Australia's trade performance
Abstract:
This article investigates the role of price and nonprice factors in predicting Australia's trade performance. Results broadly suggest that Australia's trade performance is largely explained by the nonprice factors namely, R&D, reliability of domestic supply, aggregate world demand and Foreign Direct Investment (FDI) flows in long run. Price factors such as, relative price of Australian exports and domestic prices are also important predictors of trade competitiveness. The policy implications of these findings are that there are dividends in terms of improved trade performance by encouraging R&D expenditure, attracting FDI, improving domestic supply and implementing appropriate policies to improve price competitiveness.
Journal: Applied Economics
Pages: 2679-2686
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566193
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566193
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2679-2686
Template-Type: ReDIF-Article 1.0
Author-Name: M. Piracha
Author-X-Name-First: M.
Author-X-Name-Last: Piracha
Author-Name: Y. Zhu
Author-X-Name-First: Y.
Author-X-Name-Last: Zhu
Title: Precautionary savings by natives and immigrants in Germany
Abstract:
This article analyses the savings behaviour of natives and immigrants in Germany. It is argued that uncertainty about future income and legal status (in case of immigrants) is a key component in the determination of the level of precautionary savings. Using the German dataset, we exploit a natural experiment arising from a change in the nationality law in Germany to estimate the importance of precautionary savings. Using a Difference-in-Differences (DiD) approach, we find a significant reduction in savings and remittances for immigrants after the easing of citizenship requirements, compared to the pre-reform period. Our parametric specification shows that introduction of the new nationality law reduces the gap in marginal propensity to save between natives and immigrants by up to 80%. These findings suggest that many of the differences in terms of the savings behaviour between natives and immigrants are driven by the savings arising from the uncertainties about future income and legal status rather than cultural differences.
Journal: Applied Economics
Pages: 2767-2776
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566202
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566202
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2767-2776
Template-Type: ReDIF-Article 1.0
Author-Name: Hong-wei Zhang
Author-X-Name-First: Hong-wei
Author-X-Name-Last: Zhang
Author-Name: Wei-guo Chen
Author-X-Name-First: Wei-guo
Author-X-Name-Last: Chen
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Title: Urban–rural income disparities and development in a panel data set of China for the period from 1978 to 2006
Abstract:
We examine the relationship between urban–rural income disparities and development in a panel data set of 30 provinces and regional subsets of China during the period of 1978 to 2006. There is an inverted-U relationship between the urban–rural income gap and per capita Gross Domestic Product (GDP). Financial development by scale widens the urban–rural income gap in all regional samples, while financial sector efficiency and rural bank loans may reduce it in some regions. Government spending raises the urban–rural income gap as well. We also examine the effects of urbanization, openness and education.
Journal: Applied Economics
Pages: 2717-2728
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566197
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566197
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2717-2728
Template-Type: ReDIF-Article 1.0
Author-Name: David E. Bloom
Author-X-Name-First: David E.
Author-X-Name-Last: Bloom
Author-Name: David Canning
Author-X-Name-First: David
Author-X-Name-Last: Canning
Author-Name: Erica S. Shenoy
Author-X-Name-First: Erica S.
Author-X-Name-Last: Shenoy
Title: The effect of vaccination on children's physical and cognitive development in the Philippines
Abstract:
We use data from the Cebu Longitudinal Health and Nutrition Survey (CLHNS) in the Philippines to link vaccination in the first 2 years of life with later physical and cognitive development in children. We use propensity score matching to estimate the causal effect of vaccination on child development. We find no effect of vaccination on later height or weight, but full childhood vaccination for measles, polio, Tuberculosis (TB), Diphtheria, Pertussis and Tetanus (DPT) significantly increases cognitive test scores relative to matched children who received no vaccinations. The size of the effect is large, raising test scores, on average, by about half an SD.
Journal: Applied Economics
Pages: 2777-2783
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566203
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566203
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2777-2783
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Simon Sturn
Author-X-Name-First: Simon
Author-X-Name-Last: Sturn
Title: The impact of monetary policy on unemployment hysteresis
Abstract:
This article investigates the hypothesis that the extent to which hysteresis occurs in the aftermath of recessions depends on monetary policy reactions. The degree of hysteresis is explained econometrically by the extent of monetary easing during a recession and by standard variables for labour market institutions in a pooled cross country analysis using quarterly data. The sample includes 40 recessions in 19 Organization for Economic Co-operation and Development (OECD) countries for which the required data is available. The time period lasts for the period from 1980 to 2007. This article builds on Ball (1999) and extends the sample of countries, the time period under investigation and the set of control variables.
Journal: Applied Economics
Pages: 2743-2756
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566199
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566199
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2743-2756
Template-Type: ReDIF-Article 1.0
Author-Name: Themis Kokolakakis
Author-X-Name-First: Themis
Author-X-Name-Last: Kokolakakis
Author-Name: Fernando Lera-López
Author-X-Name-First: Fernando
Author-X-Name-Last: Lera-López
Author-Name: Thanos Panagouleas
Author-X-Name-First: Thanos
Author-X-Name-Last: Panagouleas
Title: Analysis of the determinants of sports participation in Spain and England
Abstract:
This article investigates the role of sociodemographic characteristics, educational and economic variables on sports participation in a comparative way in two European countries: Spain and England. Adopting a broad concept of sport, as in the common European approach, we analyse the determinants of sports participation in 40 different professional and nonprofessional sports and recreational activities in both countries. The research involves a comparative analysis between the data of England and Spain based on two logistic regressions. The regression equation of every country tests the effect of 17 binary explanatory variables on a dependent binary variable for participation. Higher education level, professional occupation, younger age and being male are all factors associated with more sports participation. Although there is no difference in the direction of the factor effects on participation between England and Spain, there is considerable variation in their relative strength, which has sport policy implications in the two nations.
Journal: Applied Economics
Pages: 2785-2798
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566204
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566204
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2785-2798
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Yau Man Ze-To
Author-X-Name-First: Samuel Yau Man
Author-X-Name-Last: Ze-To
Title: Estimating value-at-risk under a Heath–Jarrow–Morton framework with jump
Abstract:
This article proposes a new methodology for measuring Value-at-Risk (hereafter VaR) using a model that incorporates both volatility and jumps. Heath–Jarrow–Morton (HJM) model has been used for the valuation of interest rate derivatives. This study extends the use of HJM model to the estimation VaR. This article specifically uses a two-factor HJM jump-diffusion model for the computation. The study models the Eurodollar futures prices using its derivatives. In addition, this article uses a new volatility specification of Ze-To (2002) to construct the HJM dynamics. The result indicates that the VaR model using HJM jump-diffusion framework performs well in capturing the nonnormality and in providing accurate VaR forecasts in the in-sample and out-sample tests.
Journal: Applied Economics
Pages: 2729-2741
Issue: 21
Volume: 44
Year: 2012
Month: 7
X-DOI: 10.1080/00036846.2011.566198
File-URL: http://hdl.handle.net/10.1080/00036846.2011.566198
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Handle: RePEc:taf:applec:v:44:y:2012:i:21:p:2729-2741
Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Ayari
Author-X-Name-First: Nadia
Author-X-Name-Last: Ayari
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Pedro Mendi
Author-X-Name-First: Pedro
Author-X-Name-Last: Mendi
Title: Renewable energy innovations in Europe: a dynamic panel data approach
Abstract:
We investigate the determinants of renewable energy R&D intensity and the impact of renewable energy innovations on firm performance, using several dynamic panel data models. We estimate these models using a large data set of European firms from 19 different countries, with some patenting activity in areas related to renewable energies during the 1987 to 2007 period. Our results confirm our priors on the determinants of the rapid development of renewable energy R&D intensity during the past decades. Additionally, we find evidence that renewable patent intensity has a significant dynamic impact on the stock market value of firms.
Journal: Applied Economics
Pages: 3135-3147
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570720
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570720
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Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3135-3147
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed A. Marouani
Author-X-Name-First: Mohamed A.
Author-X-Name-Last: Marouani
Author-Name: David A. Robalino
Author-X-Name-First: David A.
Author-X-Name-Last: Robalino
Title: Assessing interactions among education, social insurance and labour market policies in Morocco
Abstract:
This article develops a general equilibrium model to assess the impact that integrated reforms of macroeconomic, education and social protection policies can have on employment. The model presents three innovations. First, it formalizes the production of skills in the economy by following sex–age cohorts through the various levels of the education and training systems, given dropout and repetition rates. Second, it incorporates a module that projects social insurance expenditures as a function of the demographic structure of the country and the rules of the pension system. Finally, it develops a very detailed description of the labour market, where informality reflects strategic decisions by workers and not necessarily exclusion. The model is applied to Morocco. The results of various simulations illustrate the importance of coordinating macro, education and social protection policies in order to achieve meaningful effects on employment levels. In particular, we show that isolated interventions to improve the internal efficiency of the education system can aggravate the unemployment problem; that subsidies to investments are more efficient in sectors intensive in skilled labour; and that not controlling the growth of pension expenditures and the tax-wedge can depress employment in the formal sector.
Journal: Applied Economics
Pages: 3149-3167
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570721
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570721
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Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3149-3167
Template-Type: ReDIF-Article 1.0
Author-Name: Jaba Ghonghadze
Author-X-Name-First: Jaba
Author-X-Name-Last: Ghonghadze
Author-Name: Thomas Lux
Author-X-Name-First: Thomas
Author-X-Name-Last: Lux
Title: Modelling the dynamics of EU economic sentiment indicators: an interaction-based approach
Abstract:
This article estimates a simple univariate model of expectation or opinion formation in continuous time adapting a ‘canonical’ stochastic model of collective opinion dynamics (Weidlich and Haag, 1983; Lux, 1995, 2009a). This framework is applied to a selected data set on survey-based expectations from the rich EU business and consumer survey database for 12 European countries. The model parameters are estimated through Maximum Likelihood (ML) and numerical solution of the transient probability density functions for the resulting stochastic process. The model's success is assessed with respect to its out-of-sample forecasting performance relative to univariate Time Series (TS) models of the Autoregressive Moving Average model, ARMA(p, q) and Autoregressive Fractionally Integrated Moving Average, ARFIMA(p, d, q) varieties. These tests speak for a slight superiority of the canonical opinion dynamics model over the alternatives in the majority of cases.
Journal: Applied Economics
Pages: 3065-3088
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570716
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570716
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Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3065-3088
Template-Type: ReDIF-Article 1.0
Author-Name: Avi Herbon
Author-X-Name-First: Avi
Author-X-Name-Last: Herbon
Author-Name: Uriel Spiegel
Author-X-Name-First: Uriel
Author-X-Name-Last: Spiegel
Author-Name: Joseph Templeman
Author-X-Name-First: Joseph
Author-X-Name-Last: Templeman
Title: Simulation study of the price differentiation effect in a stochastic deteriorating inventory with heterogeneous consumers – freshness sensitivity
Abstract:
A fixed price policy regardless of expiration date may result in unsold inventory and sales loss. Price reduction over time as the expiration date approaches motivates customers to purchase all items, including the ones that are left with only a short interval until their expiration. We conduct a discrete event simulation that captures the main characteristics of this phenomenon. Results show that a moderate differentiation of price increases profits by 6%, a larger differentiation reduces profits. Profits are the highest for freshness-oriented customers. A fixed price policy is preferred in an environment of large variance and expected near term expirations.
Journal: Applied Economics
Pages: 3101-3119
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570718
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570718
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Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3101-3119
Template-Type: ReDIF-Article 1.0
Author-Name: Jenifer Piesse
Author-X-Name-First: Jenifer
Author-X-Name-Last: Piesse
Author-Name: Bruce Allen Hearn
Author-X-Name-First: Bruce Allen
Author-X-Name-Last: Hearn
Title: The law of one price: an examination of price integration between Europe and regional markets in Africa
Abstract:
This study examines the degree of price-integration of equity indices between the major markets of Africa, namely Morocco, Tunisia, Egypt, Kenya, Nigeria, Namibia and South Africa with the European markets of London and Paris. Vector Autoregressive and Autoregressive Distributed Lag methods reveal that African markets are largely price-segmented. The only markets that are price-integrated have shared economic and financial institutions, such as Namibia and South Africa, and Egypt, Tunisia and France. The evidence suggests that development policy should be focussed on enhancing existing institutions rather than embarking prematurely on regional integration.
Journal: Applied Economics
Pages: 3169-3193
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570722
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570722
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Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3169-3193
Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Feng Lee
Author-X-Name-First: Cheng-Feng
Author-X-Name-Last: Lee
Author-Name: Ching-Chuan Tsong
Author-X-Name-First: Ching-Chuan
Author-X-Name-Last: Tsong
Title: A revisit on real interest rate parity hypothesis – simulation evidence from efficient unit root tests
Abstract:
A set of unit root tests are applied to test the existence of long-run real interest rate parity among the G-10 countries over the period 1971M1 to 2007M2. Rather than trusting the asymptotic distributions, this article uses simulation techniques to establish the small sample distributions of these tests, conditional on the stationary and nonstationary processes. The empirical results indicate that the tests have stable finite-sample sizes and higher size-adjusted powers such that the two estimated processes can be distinguished from each other. Thus, for six of the nine countries, their series are more likely to come from the estimated Autoregressive (AR) stationary process than from the nonstationary process. Noticeably, the testing results are rather different from those using the asymptotic distributions, in which only three countries support the real interest rate parity.
Journal: Applied Economics
Pages: 3089-3099
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570717
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570717
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Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3089-3099
Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore Capasso
Author-X-Name-First: Salvatore
Author-X-Name-Last: Capasso
Author-Name: Oreste Napolitano
Author-X-Name-First: Oreste
Author-X-Name-Last: Napolitano
Title: Testing for the stability of money demand in Italy: has the Euro influenced the monetary transmission mechanism?
Abstract:
Stability of money demand is a crucial issue for the efficacy of monetary policy. This is particularly true in the presence of significant exogenous shocks to the monetary system. By implementing the most recent econometric testing procedures, this article intends to investigate the consistency of the stability of money demand in Italy, one of the larger European Monetary Union (EMU) countries, before and after the EMU. Among others, the objective is, indeed, to ascertain the effect of a change in the currency regime on the monetary aggregates and to provide a valid empirical model which is a viable tool for policy performance.
Journal: Applied Economics
Pages: 3121-3133
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570719
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570719
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Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3121-3133
Template-Type: ReDIF-Article 1.0
Author-Name: Bahar Bayraktar Saglam
Author-X-Name-First: Bahar Bayraktar
Author-X-Name-Last: Saglam
Author-Name: Burak Gunalp
Author-X-Name-First: Burak
Author-X-Name-Last: Gunalp
Title: The Beveridge curve and labour market dynamics in Turkey
Abstract:
This article investigates the dynamics of unemployment and vacancy rates in Turkey during the period 1951 to 2008 by means of a Beveridge Curve (BC). The time-series analysis of unemployment and vacancies as well as two other relevant labour market variables, real wages and real labour productivity, strongly suggests inefficiency in the Turkish labour market. A stable long-run relationship between unemployment rate and vacancy rate is found for Turkey, that is, the existence of a negatively sloped BC is verified. The estimated Turkish BC reflects the structural problems and lack of flexibility in the labour market. The modified BC with real wages and labour productivity reveals that labour productivity has no significant effect on unemployment rate whereas wages have positive and significant effects on the same variable.
Journal: Applied Economics
Pages: 3195-3202
Issue: 24
Volume: 44
Year: 2012
Month: 8
X-DOI: 10.1080/00036846.2011.570725
File-URL: http://hdl.handle.net/10.1080/00036846.2011.570725
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Handle: RePEc:taf:applec:v:44:y:2012:i:24:p:3195-3202
Template-Type: ReDIF-Article 1.0
Author-Name: Víctor M. González
Author-X-Name-First: Víctor M.
Author-X-Name-Last: González
Author-Name: Francisco González
Author-X-Name-First: Francisco
Author-X-Name-Last: González
Title: Firm size and capital structure: evidence using dynamic panel data
Abstract:
This article suggests that the validity of the Trade-Off Theory (TOT) and Pecking-Order Theory (POT) to explain financing decisions varies among small, medium-sized and large firms. Using dynamic panel data tests on a sample of 3439 Spanish firms over the period 1995–2003, results are partially consistent with both explanations but suggest a greater validity of pecking-order predictions for small firms. In small firms, the negative influence of profitability and the positive influence of investment opportunities and of intangible assets on firm debt predicted by the POT are heightened. However, no differences are observed between small and large firms in their speed of adjustment to the target leverage as suggested by the TOT.
Journal: Applied Economics
Pages: 4745-4754
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595690
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595690
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4745-4754
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Cowie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Cowie
Title: Contestability in bus markets – evidence from the British de-regulated market
Abstract:
Following the 1985 Transport Act in Great Britain, reforms in the provision of bus services continue across Europe and other parts of the world to this day. The British experience, however, remains a key point of study in informing these continuing developments. This article looks at the issue of contestability in bus markets, and tests for the existence of the contestable market in Britain through an examination of fare levels, profit margins and technical efficiencies in 90 identifiable bus markets. The main conclusion is that there is evidence of the contestable market in Britain, however it can hardly be described as widespread, only found to be present in 15 of the 90 markets identified in the sample. The real issue however, particularly with regard to continuing reforms elsewhere in Europe, is the ability of regulatory authorities to maintain competitive and contestable (free) markets and the research suggests that in the face of market forces this is simply not possible. The only conclusion therefore is that contestability in the free market is not sustainable, and thus can only be introduced directly through franchising.
Journal: Applied Economics
Pages: 4777-4785
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.564146
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564146
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4777-4785
Template-Type: ReDIF-Article 1.0
Author-Name: Feng-Yuan Moh
Author-X-Name-First: Feng-Yuan
Author-X-Name-Last: Moh
Author-Name: Hsi-Peng Lu
Author-X-Name-First: Hsi-Peng
Author-X-Name-Last: Lu
Author-Name: Bing-Huei Lin
Author-X-Name-First: Bing-Huei
Author-X-Name-Last: Lin
Title: Contributions to financial crisis research: an assessment of the literature in Social Science Citation Index journals from 1990 to 2008
Abstract:
Research in the field of financial crisis has generated a considerable amount of literature in the past, yet there has neither been any study to assess the contributions to the literature made by individuals or institutions, nor any to measure the impact of the articles and researchers. This study represents an attempt to: (1) investigate the major journals in publishing financial crisis research, (2) assess the contributions of individual researchers and institutions using the credited contribution approach and (3) measure the impact of individual publications and individual researchers on the financial crisis literature through citation analysis, based on the publications in Social Science Citation Index (SSCI) journals from 1990 to 2008. The findings provide a useful benchmark for assessing individual and institutional research productivity, and trends for future research and venues for publications are identified.
Journal: Applied Economics
Pages: 4689-4700
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528370
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528370
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4689-4700
Template-Type: ReDIF-Article 1.0
Author-Name: D. Maltritz
Author-X-Name-First: D.
Author-X-Name-Last: Maltritz
Author-Name: A. Bühn
Author-X-Name-First: A.
Author-X-Name-Last: Bühn
Author-Name: S. Eichler
Author-X-Name-First: S.
Author-X-Name-Last: Eichler
Title: Modelling country default risk as a latent variable: a multiple indicators multiple causes approach
Abstract:
We study the determinants of country default risk by applying a Multiple Indicators Multiple Causes (MIMIC) model. This accounts for the fact that country default risk is an unobservable variable. Whereas existing (regression-based) approaches typically use only one of several possible country default risk indicators as the dependent variable, the MIMIC model enables us to consider several indicators at once. The simultaneous consideration of sovereign yield spreads and Standard and Poor (S&P) ratings may help to improve the identification of the latent country default risk. Our results confirm most of the literature's main findings regarding important determinants of country default risk, refute others and provide new evidence to controversial questions.
Journal: Applied Economics
Pages: 4679-4688
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528369
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528369
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4679-4688
Template-Type: ReDIF-Article 1.0
Author-Name: Gaurav Nayyar
Author-X-Name-First: Gaurav
Author-X-Name-Last: Nayyar
Title: The quality of employment in India's services sector: exploring the heterogeneity
Abstract:
For some observers, the dramatic growth of the services sector in India reflects rapid strides made by educated professionals. Some others see it as the expansion of an employer of last resort. Given this heterogeneity, the object of this article is to analyse the quality of employment being created in different sub-sectors of services, relative to the industrial sector, where quality is defined to include wages, job security and social protection. Analysing household survey data from India in 1993–94 and 2004–05, we find the following. First, sub-sectors of services are generally either 'good' or 'bad' employers – higher wages do not compensate for less job security or less job protection. Second, the classification of most service sub-sectors as 'good' or 'bad' employers in 2004–05 is the same as that in 1993–94. Third, employment expansion during the 10-year period under consideration is more in service sub-sectors where quality of employment is low.
Journal: Applied Economics
Pages: 4701-4719
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.589816
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589816
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4701-4719
Template-Type: ReDIF-Article 1.0
Author-Name: R. Kumazawa
Author-X-Name-First: R.
Author-X-Name-Last: Kumazawa
Author-Name: P. Gomis-Porqueras
Author-X-Name-First: P.
Author-X-Name-Last: Gomis-Porqueras
Title: An empirical analysis of patents flows and R&D flows around the world
Abstract:
In this article, we empirically investigate the effect of Research and Development (R&D) flows on patent flows around the world. We do this using an unbalanced panel consisting primarily of Organization for Economic Co-operation and Development (OECD) countries that have both patent and R&D expenditure information broken down by domestic and foreign sources. Our analysis shows that even among a fairly homogeneous group of countries, the sources of patents and R&D differ substantially. Using a dynamic panel framework, we find that domestic R&D per capita increases domestic patents per capita only for the European Patent Convention (EPC) countries that already have a decentralized approach to innovation. Foreign R&D per capita increases foreign patents per capita in all countries even though foreign R&D constitutes a very small fraction of total R&D. We find that some of these differences can be attributed to the locations of the patent applications, including those to the European Patent Office (EPO), United States Patent and Trademark Office (USPTO) and triadic patent applications to the EPO, USPTO and Japan Patent Office (JPO) simultaneously.
Journal: Applied Economics
Pages: 4755-4763
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2010.528375
File-URL: http://hdl.handle.net/10.1080/00036846.2010.528375
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4755-4763
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Agiakloglou
Author-X-Name-First: Christos
Author-X-Name-Last: Agiakloglou
Author-Name: Apostolos Tsimpanos
Author-X-Name-First: Apostolos
Author-X-Name-Last: Tsimpanos
Title: An alternative approach for testing for linear association for two independent stationary AR(1) processes
Abstract:
Spurious correlations occur when two independent time series are found to be correlated according to the typical statistical procedure for testing the null hypothesis of zero correlation in the population. Using a Monte Carlo analysis, this study examines the spurious correlation phenomenon for two independent stationary AR(1) processes and it finds that if an alternative testing procedure is applied, spurious behaviour is eliminated using the variance of the sample correlation coefficient of these two series, suggested by Bartlett (1935).
Journal: Applied Economics
Pages: 4799-4803
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595695
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595695
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4799-4803
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Pedace
Author-X-Name-First: Roberto
Author-X-Name-Last: Pedace
Author-Name: Christine DuBois
Author-X-Name-First: Christine
Author-X-Name-Last: DuBois
Title: Immigration policy and employment assimilation in the United States
Abstract:
We examine the impact of immigration policy on the employment propensity and assimilation of immigrants using a pooled cross-section of the 1994–2004 Current Population Surveys (CPS). The results are generally consistent with positive immigrant employment assimilation. A Blinder–Oaxaca style decomposition shows that the foreign-born obtain more employment primarily through human capital acquisition and changes in labour market conditions rather than higher returns to observable skills, as sometimes seen in wage studies. In addition, our analysis suggests that immigration policies may influence both labour demand and supply incentives and are associated with structural shifts in the labour market.
Journal: Applied Economics
Pages: 4721-4730
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.589817
File-URL: http://hdl.handle.net/10.1080/00036846.2011.589817
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4721-4730
Template-Type: ReDIF-Article 1.0
Author-Name: Loreto Lira
Author-X-Name-First: Loreto
Author-X-Name-Last: Lira
Author-Name: Magdalena Ugarte
Author-X-Name-First: Magdalena
Author-X-Name-Last: Ugarte
Author-Name: Rodrigo Vergara
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Vergara
Title: Prices and market structure: an empirical analysis of the supermarket industry in Chile
Abstract:
This article investigates empirically the relationship between market structure and consumer prices in the supermarket industry in Chile. A panel of monthly data from 16 cities in the period January 1998–September 2006 is used. We find that, the more concentrated the industry in a city, the higher the prices, while the participation of major national chains in cities tends to lower prices. In terms of magnitude, this latter effect prevails over the former. Moreover, the dominant local chain is found to behave differently depending on whether or not one of the national chains is present in the city. Finally, we find that prices rise when a national chain acquires another chain and both were previously in a city (inmerge) while if only one of the two was present (outmerge), prices fall.
Journal: Applied Economics
Pages: 4731-4744
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.595689
File-URL: http://hdl.handle.net/10.1080/00036846.2011.595689
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4731-4744
Template-Type: ReDIF-Article 1.0
Author-Name: M. Hakan Berument
Author-X-Name-First: M. Hakan
Author-X-Name-Last: Berument
Author-Name: Zulal Denaux
Author-X-Name-First: Zulal
Author-X-Name-Last: Denaux
Author-Name: Yeliz Yalcin
Author-X-Name-First: Yeliz
Author-X-Name-Last: Yalcin
Title: Turkish monetary policy and components of aggregate demand: a VAR analysis with sign restrictions model
Abstract:
This article estimates the effects of monetary policy on components of aggregate demand using quarterly data on Turkish economy from 1987–2008 by means of structural Vector Autoregression (VAR) methodology. This study adopts Uhlig's (2005) sign restrictions on the impulse responses of main macroeconomic variables to identify monetary shock. This study finds that expansionary monetary policy stimulates output through consumption and investment in the short-run. However, expansionary monetary policy is ineffective in the long-run.
Journal: Applied Economics
Pages: 4787-4798
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.564151
File-URL: http://hdl.handle.net/10.1080/00036846.2011.564151
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4787-4798
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro de Faria
Author-X-Name-First: Pedro
Author-X-Name-Last: de Faria
Author-Name: Francisco Lima
Author-X-Name-First: Francisco
Author-X-Name-Last: Lima
Title: Interdependence and spillovers: is firm performance affected by others’ innovation activities?
Abstract:
The creation of new knowledge is a case in which agents' behaviour can affect the performance of other actors positively, given that new knowledge creates positive externalities in the market. In this context, we investigate the existence of performance spillovers associated with innovation activities by quantifying the innovation produced in surrounding firms and controlling for the fact that a firm is itself an innovation producer. We use data from the Third Community Innovation Survey (CIS III) that measures innovation in a broad way, not reducing it to R&D and patents, which departs from previous literature on spillovers. Furthermore, to tackle the endogeneity of the innovation variables on the firm production decision, we resort to the firm intellectual property protection methods as an instrument. We found a positive spillover of innovation on firm value added. The results also show that process innovation spillovers are more prevalent than product innovation spillovers.
Journal: Applied Economics
Pages: 4765-4775
Issue: 36
Volume: 44
Year: 2012
Month: 12
X-DOI: 10.1080/00036846.2011.560108
File-URL: http://hdl.handle.net/10.1080/00036846.2011.560108
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Handle: RePEc:taf:applec:v:44:y:2012:i:36:p:4765-4775
Template-Type: ReDIF-Article 1.0
Author-Name: Inmaculada Martínez-Zarzoso
Author-X-Name-First: Inmaculada
Author-X-Name-Last: Martínez-Zarzoso
Title: The log of gravity revisited
Abstract:
This article evaluates the performance of alternative estimation methods for gravity models with heteroscedasticity and zero trade values. Both problematic issues, recently addressed by Santos Silva and Tenreyro in an influential paper, are re-examined here. We use Monte Carlo simulations to compare the Pseudo Poisson Maximum Likelihood (PPML) estimator recommended by Santos Silva and Tenreyro, a Gamma Pseudo-Maximum-Likelihood (GPML), a Nonlinear Least Squares (NLS) estimator and a Feasible Generalized Least Squares (FGLS) estimator with more traditional techniques. Additionally, estimates of the gravity equation are obtained for three different data sets with the abovementioned methods. The results of the simulation study indicate that, although the PPML estimator is less affected by heteroscedasticity than others are, its performance is similar, in terms of bias and SEs, to the FGLS estimator performance, in particular for small samples. GPML presents however the lowest bias and SEs in the simulations without zero values. The results of the empirical estimations, using three different samples containing real data, indicate that the choice of estimator has to be made for each specific dataset. It is highly recommended to follow a model selection approach using a number of tests to select the more appropriate estimator for any application.
Journal: Applied Economics
Pages: 311-327
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.599786
File-URL: http://hdl.handle.net/10.1080/00036846.2011.599786
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:311-327
Template-Type: ReDIF-Article 1.0
Author-Name: Alexis Direr
Author-X-Name-First: Alexis
Author-X-Name-Last: Direr
Title: Are betting markets efficient? Evidence from European Football Championships
Abstract:
This article investigates the degree of efficiency of the European Football online betting market by using odds quoted by 12 bookmakers on 21 European championships over 11 years. We show that systematically picking out odds inferior to a threshold delivers a rate of return of 4.45% if best odds are selected across bookmakers and 2.78% if mean odds are used. This amounts to backing overwhelmingly favourites whose probability of winning exceeds 90%. Our results only exploit information contained in odds, are robust to the use of real-time data and different sample periods and hold under risk neutrality and expected utility preferences for realistic degrees of risk aversion. Transaction costs reduce profitability but only for small stake bets.
Journal: Applied Economics
Pages: 343-356
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.602010
File-URL: http://hdl.handle.net/10.1080/00036846.2011.602010
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:343-356
Template-Type: ReDIF-Article 1.0
Author-Name: Suyanto
Author-X-Name-First:
Author-X-Name-Last: Suyanto
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence
Abstract:
The spillovers of Foreign Direct Investment (FDI) on domestic firms’ performances have been highly debated for many years. This article contributes to this debate by analysing spillovers effects on technical efficiency of Indonesian pharmaceutical sector using a unique unbalanced panel of highly disaggregated (at five-digit International Standard Industrial Classification (ISIC)) 210 firms over the period 1990–1995 (1001 observations). The Stochastic Production Frontier (SPF) and the Data Envelopment Analysis (DEA) based on Malmquist Productivity Indices (MPI) have been used to test the spillovers effects of FDI on technical efficiency. The empirical results from the SPF show that foreign firms are more efficient than domestic competitors, and the presence of the former increases the inefficiency of the latter. Similarly the results from the MPI demonstrate that FDI has a negative and significant impact on technical efficiency changes in domestic competitors, but generate positive spillovers to domestic suppliers.
Journal: Applied Economics
Pages: 383-395
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605554
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605554
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:383-395
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Grund
Author-X-Name-First: Christian
Author-X-Name-Last: Grund
Author-Name: Andreas Schmitt
Author-X-Name-First: Andreas
Author-X-Name-Last: Schmitt
Title: Works councils, wages and job satisfaction
Abstract:
We investigate the effects of works councils on employees' wages and job satisfaction in general and for subgroups with respect to sex and occupational status. Making use of a German representative sample of employees, we find that employees, who move to a firm with a works council, report increases in job satisfaction, but do not receive particular wage increases. Especially the job satisfaction of female employees is affected by a change in works council status. However, we do not find support for the hypothesis that the introduction of a works council itself increases wages or job satisfaction for the employees staying at the firm.
Journal: Applied Economics
Pages: 299-310
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597735
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597735
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:299-310
Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Klomp
Author-X-Name-First: Jeroen
Author-X-Name-Last: Klomp
Author-Name: Jakob De Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: De Haan
Title: Do political budget cycles really exist?
Abstract:
Most recent cross-country studies on election-motivated fiscal policy assume that the data can be pooled. As various tests suggest that our data for some 70 democratic countries for the period 1970–2007 cannot be pooled, we use the Pooled Mean Group (PMG) estimator to test whether Political Budget Cycles (PBCs) exist in our sample. We find that fiscal policy is only affected by upcoming elections in the short run. Our results suggest that the occurrence of a PBC is conditional on the level of development and democracy, government transparency, the country's political system, its membership of a monetary union and its degree of political polarization.
Journal: Applied Economics
Pages: 329-341
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.599787
File-URL: http://hdl.handle.net/10.1080/00036846.2011.599787
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:329-341
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph M. Santos
Author-X-Name-First: Joseph M.
Author-X-Name-Last: Santos
Title: Trading grain now and then: the relative performance of early grain-futures markets
Abstract:
Popular hostilities toward futures trading in the United States date to the nineteenth century, when many Americans perceived then-nascent grain exchanges as little more than gaming parlours that existed to serve the illegitimate aspirations of gamblers–a depiction that, if anything, compromises the legitimacy of modern futures exchanges. Yet, agricultural historians have largely praised the performance of these early markets, which they contend were shaped by commercial interests who sought successfully to mitigate price risk. In any case, our understanding of how early futures markets performed is fragmented, and so such claims remain largely unsubstantiated in a quantifiable sense. Even so, futures-price data are available for the late-nineteenth century, thanks to the Chicago Board of Trade (CBT), which pioneered grain-futures trading in the 1860s. In this article, I test and compare the performance of wheat, corn, and oats futures prices on the CBT from 1880 to 1890 and from 1997 to 2007. My results indicate that grain-futures markets in both periods are efficient in the long run. Short-run performance is mixed, and inefficiency is more evident in the nineteenth century. On balance, my results support the notion that early grain-futures exchanges benefited commercial interests and the grain trade more generally.
Journal: Applied Economics
Pages: 287-298
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597732
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597732
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:287-298
Template-Type: ReDIF-Article 1.0
Author-Name: Peter H. van der Meer
Author-X-Name-First: Peter H.
Author-X-Name-Last: van der Meer
Author-Name: Rudi Wielers
Author-X-Name-First: Rudi
Author-X-Name-Last: Wielers
Title: What makes workers happy?
Abstract:
This article answers the question what makes workers happy? It does so by combining insights from micro-economics, sociology and psychology. Basis is the standard utility function of a worker that includes income and hours of work and is elaborated with job characteristics. In this way it is possible to answer whether part-time workers are happier than full-time workers. The utility function is estimated on basis of the European Social Survey 2004 which contains all necessary information. The results show that workers optimize income and hours of work as predicted by micro-economics, but also that part-time workers are happier than full-time workers. Challenging work with a high level of autonomy makes the workers happy, work pressure makes workers unhappy. Higher educated workers are unhappier than lower educated workers, we find a negative effect of education, but this is compensated by the type of jobs these higher educated hold.
Journal: Applied Economics
Pages: 357-368
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.602011
File-URL: http://hdl.handle.net/10.1080/00036846.2011.602011
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:357-368
Template-Type: ReDIF-Article 1.0
Author-Name: Travis Ng
Author-X-Name-First: Travis
Author-X-Name-Last: Ng
Author-Name: Terence Tai-Leung Chong
Author-X-Name-First: Terence Tai-Leung
Author-X-Name-Last: Chong
Author-Name: Man-Tat Siu
Author-X-Name-First: Man-Tat
Author-X-Name-Last: Siu
Author-Name: Benjamin Everard
Author-X-Name-First: Benjamin
Author-X-Name-Last: Everard
Title: What determines the price of a racing horse?
Abstract:
This article uses the data of 10 auctions from the two largest Australian auction houses to study how a racing horse is priced. We ask whether bloodline is indeed a determining factor. We find that the track record of its parents and siblings are important factors in determining the price of a yearling. Moreover, more mature horses and those purchased by foreign buyers are generally more expensive. We also show that racing horses sold in the flagship auctions are associated with a significant premium.
Journal: Applied Economics
Pages: 369-382
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605553
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605553
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:369-382
Template-Type: ReDIF-Article 1.0
Author-Name: Daehwan Kim
Author-X-Name-First: Daehwan
Author-X-Name-Last: Kim
Author-Name: Jung Inn Kim
Author-X-Name-First: Jung Inn
Author-X-Name-Last: Kim
Author-Name: Taeyoon Sung
Author-X-Name-First: Taeyoon
Author-X-Name-Last: Sung
Title: Stock market liberalization and price response: gradualism versus cold turkey
Abstract:
We present a simple analytical framework that illustrates the impact of two types of market liberalization on stock prices: cold turkey versus gradual liberalization. Using this theoretical framework, we show that gradual stock market liberalization can have a negative impact on stock prices when such gradual liberalization increases uncertainty about future stock prices. We examine the liberalization experience of the Korean stock market, and find that our analysis could be relevant in that case.
Journal: Applied Economics
Pages: 273-285
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.597731
File-URL: http://hdl.handle.net/10.1080/00036846.2011.597731
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:273-285
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Erik Askildsen
Author-X-Name-First: Jan Erik
Author-X-Name-Last: Askildsen
Author-Name: Tor Helge Holmås
Author-X-Name-First: Tor Helge
Author-X-Name-Last: Holmås
Title: Wages and work conditions as determinants for physicians' work decisions
Abstract:
It is not uncommon that publicly employed physicians also have income from work outside the hospital, sometimes termed moonlighting. There is little empirical evidence of such activity. In this article, we investigate which factors that may influence physicians' choice of work between the public hospital sector and elsewhere. An exceptionally high wage increase in 1996 for one group of hospital physicians (physician assistants) serves as a natural experiment, and we analyse whether wages in general and this reform in particular have affected physicians' external earnings. For physician assistants we find that higher wages at public hospitals affect negatively both the decisions to earn income externally, and level of income once active. For chief physicians, on the other hand, there was no such response to the wage increase. Several hospital specific factors representing job specific work characteristics also matter for physicians' decisions to earn income externally.
Journal: Applied Economics
Pages: 397-406
Issue: 3
Volume: 45
Year: 2013
Month: 1
X-DOI: 10.1080/00036846.2011.605756
File-URL: http://hdl.handle.net/10.1080/00036846.2011.605756
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Handle: RePEc:taf:applec:v:45:y:2013:i:3:p:397-406
Template-Type: ReDIF-Article 1.0
Author-Name: Yize Xie
Author-X-Name-First: Yize
Author-X-Name-Last: Xie
Author-Name: Junyi Zhang
Author-X-Name-First: Junyi
Author-X-Name-Last: Zhang
Author-Name: Zhusong Yang
Author-X-Name-First: Zhusong
Author-X-Name-Last: Yang
Title: Globalization, state capacity and the third wave of democratization: an empirical study
Abstract:
Instead of looking at the relationship between globalization and democratization from a social and institutional perspective, this article focuses on the moderating role of state capacities, which are divided into two sub-categories: state coercive capacity and state administrative capacity. Using panel data from 129 countries for 1974–2018, we arrive at two conclusions. First, globalization is positively correlated with democratization, but this relationship weakens with stronger state administrative capacity. Second, while state coercive capacity has an inverse relationship with democratization, state administrative capacity is positively associated with democratization, and this positive effect wanes with greater degrees of globalization.
Journal: Applied Economics
Pages: 3377-3390
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1878094
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Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3377-3390
Template-Type: ReDIF-Article 1.0
Author-Name: Kyungsub Lee
Author-X-Name-First: Kyungsub
Author-X-Name-Last: Lee
Author-Name: Byoung Ki Seo
Author-X-Name-First: Byoung Ki
Author-X-Name-Last: Seo
Title: Analytic formula for option margin with liquidity costs under dynamic delta hedging
Abstract:
This study derives the expected liquidity cost when performing the delta hedging process of a European option. This cost is represented by an integration formula that includes European option prices and a certain function depending on the delta process. We first define a unit liquidity cost and then show that the liquidity cost is a multiplication of the unit liquidity cost, stock price, supply curve parameter, and the square of the number of options. Using this formula, the expected liquidity cost before hedging can be calculated much faster than when using a Monte Carlo simulation. Numerically computed distributions of liquidity costs in special cases are also provided.
Journal: Applied Economics
Pages: 3391-3407
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1881430
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1881430
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Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3391-3407
Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Koomson
Author-X-Name-First: Isaac
Author-X-Name-Last: Koomson
Author-Name: Renato Andrin Villano
Author-X-Name-First: Renato Andrin
Author-X-Name-Last: Villano
Author-Name: David Hadley
Author-X-Name-First: David
Author-X-Name-Last: Hadley
Title: Accelerating the impact of financial literacy training programmes on household consumption by empowering women
Abstract:
This study examines the impact of a joint financial literacy and women’s empowerment training programme on household consumption as a welfare indicator. Using data collected from a randomized controlled trial implemented in Ghana, we tested for baseline balance and applied ordinary least squares to estimate endline impact. Our findings revealed that the impact of financial literacy on household consumption is influenced by the design and delivery of the programme. A weaker impact is achieved when financial literacy training is offered alone. The ensuing stronger short-term impact of financial literacy training on household consumption is achieved through the inclusion of a women’s empowerment module. The joint delivery of the programme significantly improved household consumption for female-beneficiary and younger households. We advocate the inclusion of women’s empowerment training in financial literacy training programmes to accelerate its impact on household welfare through increased household consumption
Journal: Applied Economics
Pages: 3359-3376
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1878093
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1878093
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Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3359-3376
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Rosenbaum
Author-X-Name-First: Philip
Author-X-Name-Last: Rosenbaum
Title: Pregnancy or motherhood cost? A comparison of the child penalty for adopting and biological parents
Abstract:
This study investigates whether the high labour market costs of having children for women can be explained by the associated biological costs. Estimating the significance of biological factors requires separating the effects of having a child from the effects of giving birth to a child. This separation is estimated by comparing child penalties between biological and adopting families. Adopting mothers neither go through pregnancy nor nursing, thus lessening the burden of the sex-specific costs of having children. I apply an event study by following parents over 16 years and find large and significant child penalties for all mothers although the penalties are slightly smaller for adopting mothers than those for biological mothers. Neither adopting nor biological fathers experience any child penalties. The results suggest that child penalties have some biological components, but the burden is on women regardless of whether they carry the biological costs related to pregnancy.
Journal: Applied Economics
Pages: 3408-3422
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1881431
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1881431
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Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3408-3422
Template-Type: ReDIF-Article 1.0
Author-Name: Yong Xu
Author-X-Name-First: Yong
Author-X-Name-Last: Xu
Author-Name: Xin Zhao
Author-X-Name-First: Xin
Author-X-Name-Last: Zhao
Author-Name: Xiaoxiao Zhou
Author-X-Name-First: Xiaoxiao
Author-X-Name-Last: Zhou
Author-Name: Ling Yuan
Author-X-Name-First: Ling
Author-X-Name-Last: Yuan
Title: Financial Structure and Capital Allocation Efficiency: An Empirical Analysis of China from 2005–2018
Abstract:
In this study, we explore the relationship between financial structure and the efficiency of capital allocation to determine a scientific and effective approach to transform and upgrade China’s financial sector. Using China’s provincial data from 2005 to 2018, we detected the threshold effect of financial structure on capital allocation efficiency. We found that financial structure, when using its three agency indicators (credit scale, insurance scale, and stock market size) as threshold variables, and capital allocation efficiency show an inverted ‘U’ relationship. Moreover, the relationship between financial efficiency, insurance scale, and capital allocation efficiency changes from negative to positive, and the relationship between foreign trade scale and capital allocation efficiency shows a significant negative correlation. This research improves the understanding of the relationship between China’s financial structure and the efficiency of capital allocation. Our results show that by optimizing the financial structure through expanding the stock market and the scale of bank credit and appropriately expanding the scale of insurance, more loanable funds will flow into the production sector, and providing certain guarantees can greatly promote improved capital allocation efficiency.
Journal: Applied Economics
Pages: 3347-3358
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877256
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877256
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Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3347-3358
Template-Type: ReDIF-Article 1.0
Author-Name: Yan Song
Author-X-Name-First: Yan
Author-X-Name-Last: Song
Title: Noncognitive skills and gender gap in test scores
Abstract:
This article studies gender gap patterns in language and math during primary school periods in China, and investigates candidate theories to explain the observed patterns. Using an administrative test dataset, we find that girls on average outperform boys in language and have advantage in math in primary school. The gaps for language in all quantiles widen consistently over time. Female’s advantages in math in most quantiles, except the lowest, shrink over time. Using a survey on students in primary schools, we find that noncognitive skills can effectively reduce the gender gap in both Chinese and math. This effect is most pronounced for students in the bottom quantile group.
Journal: Applied Economics
Pages: 3423-3437
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883189
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883189
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Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3423-3437
Template-Type: ReDIF-Article 1.0
Author-Name: Eun Kang
Author-X-Name-First: Eun
Author-X-Name-Last: Kang
Author-Name: Ryumi Kim
Author-X-Name-First: Ryumi
Author-X-Name-Last: Kim
Title: Product market competition, reputation, and dividend policy
Abstract:
This paper examines the effect of product market competition on the dividend policy of firms. Previous studies report different relationships between product market competition and dividend payout policies. This paper aims to clarify the relationship between product market competition and dividend payout policies by dividing dividend-paying firms into two groups, high dividend firms and low dividend firms, based on the level of dividends. We hypothesize that when the product market is more competitive, high dividend firms pay more dividends, but low dividend firms pay less dividends. According to our test using all firms listed on the NYSE, AMEX, and NASDAQ stock exchanges from the CRSP, the results support our hypothesis. This paper also emphasizes the importance of the dividend reputation in the analysis of dividend-related matters. Firms with dividend reputation pay higher dividends than firms with no reputation.
Journal: Applied Economics
Pages: 3334-3346
Issue: 29
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1877255
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1877255
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Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3334-3346
Template-Type: ReDIF-Article 1.0
Author-Name: Chengyuan Wang
Author-X-Name-First: Chengyuan
Author-X-Name-Last: Wang
Author-Name: Qiong Wang
Author-X-Name-First: Qiong
Author-X-Name-Last: Wang
Author-Name: Shanshan Zheng
Author-X-Name-First: Shanshan
Author-X-Name-Last: Zheng
Author-Name: Liang Wan
Author-X-Name-First: Liang
Author-X-Name-Last: Wan
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Author-Name: Jia’Ning Zang
Author-X-Name-First: Jia’Ning
Author-X-Name-Last: Zang
Title: Peer effects of bank loan portfolio on systemic insolvency risk: evidence from China
Abstract:
By empirically analysing the panel data of Chinese commercial banks, we find that regional city commercial banks significantly mimic their peers in multiple lending parts of loan portfolio, while large nationwide commercial banks behave oppositely to their peers. In addition, by using a Euclidean distance way to measure bank interconnectedness, we reveal that the overlap of loan portfolios between banks is significantly correlated to the similarity of insolvency risk between them. It implies that peer effects of bank loan portfolio are likely to be sources of systemic insolvency risk in the bank system. These results help deepen the understanding of peer effects of bank activities, and provide insights into the correlation between peer effects and systemic risk in banks.
Journal: Applied Economics
Pages: 3457-3473
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883527
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Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3457-3473
Template-Type: ReDIF-Article 1.0
Author-Name: Jing Li
Author-X-Name-First: Jing
Author-X-Name-Last: Li
Author-Name: Sarina Sangal
Author-X-Name-First: Sarina
Author-X-Name-Last: Sangal
Author-Name: Ling Shao
Author-X-Name-First: Ling
Author-X-Name-Last: Shao
Title: Assessing economic impact of sovereignty transfer over Hong Kong: a synthetic control approach
Abstract:
This article compares the trajectory of Hong Kong’s purchasing power parity–adjusted GDP per capita before and after the 1997 handover with the trajectory of a weighted combination of similar economies, using weights determined endogenously by data. The synthetic Hong Kong is constructed to provide the counterfactual of what would have happened to Hong Kong economy in the absence of transfer of sovereignty. We find that Hong Kong economy is negatively affected, and the gap between actual and synthetic Hong Kong from 1997 to 2001 on average is 7% of the 1996 level if Japan receives the greatest weight. The average negative effect becomes 9% if Singapore receives the greatest weight.
Journal: Applied Economics
Pages: 3499-3514
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883529
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883529
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Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3499-3514
Template-Type: ReDIF-Article 1.0
Author-Name: Adrian R. Fleissig
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Fleissig
Title: Estimating elasticities of substitution for sin goods
Abstract:
Own-price and cross-price elasticities of substitution are estimated for the six ‘sin’ goods of spirits, beer, wine, casino gambling and lotteries using aggregate U.S. quarterly national data. The own-price and cross-price elasticities of substitution are not constrained to be constant over the sample and are estimated using the Fourier flexible form. There is evidence of much variation in substitution over the sample, including during the recessions. All ‘sin’ goods, except lotteries, have inelastic demands. Beer and tobacco have the most inelastic demands which are consistent with the evidence that beer is the most popular type of spirit while tobacco products are often considered addictive commodities. The three types of alcohol of spirits, beer, and wine are Morishima cross-price substitutes. Casino gambling and lotteries are Morishima cross-price substitutes having an elastic response to price changes in casino gambling but have and inelastic response for price changes of lotteries. Estimates show that the remaining ‘sin’ goods are complements in use. Policy makers must consider how a tax on a ‘sin’ good will impact demand for the good partially based on its own-price elasticity of demand as well as the cross-price elasticity of substitution or complementarity relationships with other ‘sin’ goods.
Journal: Applied Economics
Pages: 3549-3561
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883539
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883539
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Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3549-3561
Template-Type: ReDIF-Article 1.0
Author-Name: Jianlei Yang
Author-X-Name-First: Jianlei
Author-X-Name-Last: Yang
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Title: Does economic policy uncertainty impact the mean–variance relation? Evidence from China
Abstract:
This study shows the impact of economic policy uncertainty (EPU) on the mean–variance relation. Using the news-based EPU index of China, we discover the significant effect of EPU on the mean–variance relation of the Chinese stock market. Besides, our empirical findings reveal that the influence of EPU on the market’s mean–variance relation is time-varying. During the low-EPU periods, the stock market’s excess return is positively related to conditional variance; during the high-EPU periods, the stock market’s excess return is negatively related to conditional variance. Furthermore, our results are robust across different conditional variance models as well as controlling for Fama–French three factors of the Chinese stock market.
Journal: Applied Economics
Pages: 3438-3456
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883526
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883526
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Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3438-3456
Template-Type: ReDIF-Article 1.0
Author-Name: Imtithal A. Althumairi
Author-X-Name-First: Imtithal A.
Author-X-Name-Last: Althumairi
Title: Constructing a social accounting matrix for Saudi Arabia: sources and methods
Abstract:
Even though Saudi Arabia is the largest country in the Middle East, and despite the magnitude of its economy, there have been no attempts to build a social accounting matrix (SAM) for Saudi Arabia based on the country’s real, official data. Thus, this study documents the construction procedures of the 2017 SAM for Saudi Arabia using high-quality official statistics. The procedures can be divided into two main steps. First, a highly aggregated macro-SAM is constructed. Second, the macro-SAM is disaggregated into a micro-SAM with the macro-SAM entries serving as control totals for sub-matrices of the micro-SAM. The results exhibit consistency and balance, which comprises a decent level of disaggregation for sectors via 54 accounts that are relevant for policy evaluation: 18 production activities, 18 commodities accounts, 4 factors of production, 10 institutions, and 4 other accounts. The resulting SAM is useful because it provides a consistent framework for socio-economic accounting of the Saudi economy.
Journal: Applied Economics
Pages: 3474-3498
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883528
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883528
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Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3474-3498
Template-Type: ReDIF-Article 1.0
Author-Name: Shi Li
Author-X-Name-First: Shi
Author-X-Name-Last: Li
Author-Name: Long Zhao
Author-X-Name-First: Long
Author-X-Name-Last: Zhao
Author-Name: Hao Shen
Author-X-Name-First: Hao
Author-X-Name-Last: Shen
Title: Foreign direct investment and institutional environment: the impact of bilateral investment treaties
Abstract:
Institutional factors are a critical driving force for the rapid growth of outward foreign direct investment (FDI) in developing countries. This article attempts to explain how developing countries can take advantage of bilateral investment treaties (BITs) to reduce investment uncertainties caused by informal institutional distance and help domestic companies invest abroad. The results confirm that the cultural difference between China and a host country is negatively associated with the likelihood of FDI entry into the host country. BITs function as a substitute for the host country’s institutional environment by reducing investment uncertainties caused by cultural distance. Moreover, state-owned enterprises are less responsive to BITs in host countries than private enterprises, suggesting that private firms rely more on BITs to reduce their investment risks abroad.
Journal: Applied Economics
Pages: 3535-3548
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883535
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883535
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Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3535-3548
Template-Type: ReDIF-Article 1.0
Author-Name: David Meenagh
Author-X-Name-First: David
Author-X-Name-Last: Meenagh
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Title: A structural model of coronavirus behaviour for testing on data behaviour
Abstract:
We fit the logistic function, the reduced form of epidemic behaviour, to the data for deaths from Covid-19, for a wide variety of countries, with a view to estimating a causal model of the Covid virus’ progression. We then set up a structural model of the Covid virus behaviour based on evolutionary biology and social household behaviour; we estimated and tested this by indirect inference, matching its simulated logistic behaviour to that found in the data. In our model, the virus’ progression depends on the interaction of strategies by household agents, the government and the virus itself as programmed by evolution. Within these interactions, it turns out that there is substitution between government topdown direction (such as lockdown) and social reaction to available information on the virus’ behaviour. We also looked at the experience of second waves, where we found that countries successfully limited second waves when they had had longer first waves and followed policies of localized reaction in the second.
Journal: Applied Economics
Pages: 3515-3534
Issue: 30
Volume: 53
Year: 2021
Month: 06
X-DOI: 10.1080/00036846.2021.1883531
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883531
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Handle: RePEc:taf:applec:v:53:y:2021:i:30:p:3515-3534
Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Luca Gambarelli
Author-X-Name-First: Luca
Author-X-Name-Last: Gambarelli
Author-Name: Silvia Muzzioli
Author-X-Name-First: Silvia
Author-X-Name-Last: Muzzioli
Title: The skewness index: uncovering the relationship with volatility and market returns
Abstract:
The SKEW index of the Chicago Board Options Exchange (CBOE), launched in February 2011, measures the tail risk not fully captured by the VIX index. In this paper we introduce, for the first time, a skewness index for the Italian stock market (ITSKEW) and investigate the pairwise and trilateral relations of this index with volatility and market returns. The results are compared with those of the US market. Data for the period 3 January 2011 to 29 December 2017 are used and three main results are found. First, in both the US and the Italian markets, the skewness index acts as a measure of market greed, as opposed to market fear, in the sense that it captures investor excitement to a larger extent than investor fear. Second, increases in the skewness index are related to returns with high significance in the Granger causality test, while the reverse is not the case. Last, volatility and skewness may give conflicting signals. When skewness and volatility indices move in the same direction, investors should rely on volatility because it has a stronger influence on market returns. The implications for investors and policy-makers are outlined.
Journal: Applied Economics
Pages: 3619-3635
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1884837
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1884837
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Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3619-3635
Template-Type: ReDIF-Article 1.0
Author-Name: Mara-José Gutiérrez
Author-X-Name-First: Mara-José
Author-X-Name-Last: Gutiérrez
Author-Name: Belén Inguanzo
Author-X-Name-First: Belén
Author-X-Name-Last: Inguanzo
Author-Name: Susan Orbe
Author-X-Name-First: Susan
Author-X-Name-Last: Orbe
Title: Distributional impact of COVID-19: regional inequalities in cases and deaths in Spain during the first wave
Abstract:
Spain is being hit hard by the COVID-19 pandemic. During the first wave, from mid-March to early June 2020, the disease caused nearly 30,000 deaths in a population of 47 million. This article quantifies the unevenness in the distribution of epidemiological variables across the Spanish territory. The study is relevant because Spain is divided into regions that hold devolved authority for providing health care services to their citizens. Using inequality metrics, the study shows: i) By mid-April inequality in the epidemiological variables reached a stationary value that changed little with the incorporation of new cases and deaths. At the end of the outbreak, cumulative cases and deaths were fairly unevenly distributed across Spanish provinces; ii) Inequality shows a monotonic downward trend throughout the outbreak showing a decrease from the onset to the end ranging from 22% to 49% in cases and between 17% and 42% in deaths; iii) Over 90% of the inequality observed can be attributed to differences between regions, while less than 10% is due to the differences across provinces within regions. Awareness of the existence and nature of the inequality observed in the epidemiological variables is needed to develop successful policies to improve health services in Spain.
Journal: Applied Economics
Pages: 3636-3657
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1884838
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1884838
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Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3636-3657
Template-Type: ReDIF-Article 1.0
Author-Name: Jan C. van Ours
Author-X-Name-First: Jan C.
Author-X-Name-Last: van Ours
Title: What a drag it is getting old? Mental health and loneliness beyond age 50
Abstract:
This paper studies mental health and loneliness in the Netherlands for individuals beyond age 50. The analysis is based on panel data over the period 2008 to 2018 and focuses on the effects of life events and ageing. It appears that mental health gets worse and loneliness increases if individuals lose their partner (through divorce or death) or become unemployed. On average, the mental health of males and high educated females improves at retirement. With respect to ageing, the main conclusions are that mental health improves while loneliness goes down at least up to the high 70s. From the perspective of mental health and loneliness, it does not seem to be a drag getting old.
Journal: Applied Economics
Pages: 3563-3576
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1883540
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883540
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Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3563-3576
Template-Type: ReDIF-Article 1.0
Author-Name: Arnar Buason
Author-X-Name-First: Arnar
Author-X-Name-Last: Buason
Author-Name: Dadi Kristofersson
Author-X-Name-First: Dadi
Author-X-Name-Last: Kristofersson
Author-Name: Kyrre Rickertsen
Author-X-Name-First: Kyrre
Author-X-Name-Last: Rickertsen
Title: Habits in frequency of purchase models: the case of fish in France
Abstract:
The quantity purchased in a period is the result of two decisions: the frequency of purchase and the average purchase on each occasion. We introduce habit formation into demand systems modelling each of these decisions. An econometric model is estimated by Bayesian methods. The data generating processes of the frequency and quantity decisions are assumed to follow, respectively, a multivariate Poisson log-normal distribution and a multivariate gamma log-normal distribution. We estimate the systems using French scanner data for purchases of fish. The results suggest that habits in purchase frequencies are important, while habits in average purchased quantities are less important. Furthermore, we find that price changes are important for explaining average quantities purchased but have only minor effects on purchase frequencies.
Journal: Applied Economics
Pages: 3577-3589
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1883541
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883541
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Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3577-3589
Template-Type: ReDIF-Article 1.0
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Qingzhe Jiang
Author-X-Name-First: Qingzhe
Author-X-Name-Last: Jiang
Author-Name: Jun Zhao
Author-X-Name-First: Jun
Author-X-Name-Last: Zhao
Title: Valuing the greenhouse effect of political risks: the global case
Abstract:
To empirically verify whether political risks affect global carbon dioxide (CO2) emissions, this study investigates the effect of political risks on countries’ CO2 emissions by employing a panel dataset of 66 countries over the period 2003–2018. Furthermore, this study also separately tests three major effects (i.e., scale effect, technique effect, and structure effect) of political risks on countries’ CO2 emissions. Considering regional heterogeneity, this study conducts an asymmetric analysis of the impact of political risks on CO2 emissions. The results show that the total effect of political risks on CO2 emissions is negative for the global panel. Although political risks increase countries’ CO2 emissions by promoting secondary industry (structure effect) for the global panel, the scale and technique effects of political risks can alleviate the greenhouse effect. Furthermore, the impacts of the influencing factors on countries’ CO2 emissions are significantly heterogeneous and asymmetric across different quantiles. Based on the above findings, this study provides several targeted policy suggestions for mitigating countries’ CO2 emissions.
Journal: Applied Economics
Pages: 3604-3618
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1883543
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883543
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Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3604-3618
Template-Type: ReDIF-Article 1.0
Author-Name: Umar Farooq
Author-X-Name-First: Umar
Author-X-Name-Last: Farooq
Author-Name: Adeel Nasir
Author-X-Name-First: Adeel
Author-X-Name-Last: Nasir
Author-Name: Bilal
Author-X-Name-First:
Author-X-Name-Last: Bilal
Author-Name: Muhammad Umer Quddoos
Author-X-Name-First: Muhammad Umer
Author-X-Name-Last: Quddoos
Title: The impact of COVID-19 pandemic on abnormal returns of insurance firms: a cross-country evidence
Abstract:
This research investigates the abnormal returns of 958 insurance companies from Australia, Canada, Germany, USA, UK, Brazil, India, and Indonesia under the COVID-19 scenario. This study deploys the event study methodology to analyse the effects of COVID-19 on stock returns both in the short and long terms. Results reveal that, overall, COVID-19 negatively affected the stock returns, particularly in the case of insurance firms operating in developing countries. This research also explores firm-specific determinants distinguishing the most affected insurance firms. It is found that firm size, systematic risk, price-earnings ratio, profitability, and dividend yield affect the intensity of abnormal returns in response to COVID-19 but in different event windows. The investors and policymakers should consider these factors in connection with the risk mitigating strategies.
Journal: Applied Economics
Pages: 3658-3678
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1884839
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1884839
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Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3658-3678
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyong Dai
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Dai
Author-Name: Zhiqi Zhao
Author-X-Name-First: Zhiqi
Author-X-Name-Last: Zhao
Title: Behavioural additionality of China’s business-tax-to-VAT reform on firms’ internal and external R&D investment
Abstract:
This paper investigates the unintended effect of the business-tax-to-VAT (B2V) reform in China on manufacturing firms’ internal and external R&D behaviour. The B2V reform was implemented in the service sectors to replace business tax with value-added tax. It creates tax incentives for downstream manufacturing firms to increase external R&D outsourcing, as purchasing R&D and technology services becomes tax-deductible after the reform. Using a large administrative firm-level dataset, we found that downstream manufacturing firms that were previously more closely linked to upstream R&D and technology services are more affected by the B2V reform, and tend to increase external R&D outsourcing and reduce internal R&D expenditures. The unintended behavioural additionality is mainly driven by small and medium-sized firms and firms with low R&D capabilities which usually bear high costs of conducting internal R&D and rely more on external R&D services. Our study implies the possibility of leveraging tax incentive measures to encourage firms to seek external knowledge and technologies.
Journal: Applied Economics
Pages: 3590-3603
Issue: 31
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1883542
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1883542
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Handle: RePEc:taf:applec:v:53:y:2021:i:31:p:3590-3603
Template-Type: ReDIF-Article 1.0
Author-Name: Oveis Madadian
Author-X-Name-First: Oveis
Author-X-Name-Last: Madadian
Author-Name: Walter Aerts
Author-X-Name-First: Walter
Author-X-Name-Last: Aerts
Author-Name: Tom Van Caneghem
Author-X-Name-First: Tom
Author-X-Name-Last: Van Caneghem
Title: Value relevance of peer-based benchmarking of discretionary expenses and business strategy
Abstract:
Research on value relevance of reported selling, general and administrative expenses (SG&A) generally employs historical SG&A as reference point for assessment. This practice tends to ignore the interpretational ambiguity that surrounds the economics of SG&A expenditure and what it means for future profitability and firm value. Organizational theories stress the importance of peer-based benchmarking as an aid for assessment, especially when assessment uncertainty is high, and argue that similarity to peers holds information by lending sensibility, appropriateness and technical value to observed behaviour, thereby reducing assessment uncertainty. Using a sample of listed US firms, we investigate whether SG&A similarity to an industry-specific peer-based benchmark conveys value-relevant information, reducing information asymmetry between firms and investors. We find that only for firms with SG&A exceeding the peer-based benchmark in the previous period, SG&A similarity is associated with higher future financial performance and reduces information asymmetry between firms and investors. We also find that both contemporaneous stock returns and future firm value impound this uncertainty-reducing information conveyed by SG&A similarity. Results further show that the value-relevance of SG&A similarity mainly holds for firms with a Defender-type business strategy and firms from peer groups where business strategies are more similar.
Journal: Applied Economics
Pages: 3694-3714
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885610
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885610
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Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3694-3714
Template-Type: ReDIF-Article 1.0
Author-Name: Rui Xie
Author-X-Name-First: Rui
Author-X-Name-Last: Xie
Author-Name: Meng Niu
Author-X-Name-First: Meng
Author-X-Name-Last: Niu
Author-Name: Bin Su
Author-X-Name-First: Bin
Author-X-Name-Last: Su
Author-Name: Jiali Ge
Author-X-Name-First: Jiali
Author-X-Name-Last: Ge
Title: Are global value chains merely global? The case of Chinese Provinces in global value chains
Abstract:
We extend the measure of the global value chain (GVC) decomposition framework to the sub-national regional level based on a new Trans-national Inter-regional Input-Output (TIIO) table , which covers 30 Chinese provinces for 2007 and 2012. We answer the question whether fragmentation of GVCs is mainly national, regional or merely global by deriving the geographical distribution by province and the trends related to the production chain of a particular final good. Depending on whether the intermediate inputs cross borders for production or not, we further divide these production activities into GVC or non-GVC activities and identify the changing mechanism from the perspective of simple and complex GVC activities. We find that coastal provinces show a higher decline in nationalization compared to inland provinces. The degree of regionalization weakening of each province is generally the same, which is more evident in coastal provinces. Additionally, coastal provinces show a more significant decline of globalization compared to inland provinces. Regarding border crossing production-sharing activities, complex GVC embeddedness is the main mode of Chinese provinces. They, however, show signs of gradual weakening over time. This is more pronounced in the dynamic evolution of regionalization and globalization in coastal provinces.
Journal: Applied Economics
Pages: 3778-3794
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1886236
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1886236
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Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3778-3794
Template-Type: ReDIF-Article 1.0
Author-Name: Liangyong Wan
Author-X-Name-First: Liangyong
Author-X-Name-Last: Wan
Author-Name: Jianyou Ou
Author-X-Name-First: Jianyou
Author-X-Name-Last: Ou
Author-Name: Bingxuan Lin
Author-X-Name-First: Bingxuan
Author-X-Name-Last: Lin
Title: Does religion affect cost stickiness? Evidence from China
Abstract:
Using Chinese A-share listed industrial firms between 2009 and 2016, we find that greater religious influence is negatively associated with firm cost stickiness. This negative association is more significant for firms displaying higher agency costs, lower risk aversion, and a higher probability of corruption. Our findings highlight the importance of informal institutions such as religion on corporate behaviours such as cost stickiness.
Journal: Applied Economics
Pages: 3730-3743
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885612
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885612
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Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3730-3743
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Title: Forecasts of growth in US residential investment: accuracy gains from consumer home-buying attitudes and expectations
Abstract:
This study focuses on the Federal Reserve and private forecasts of growth in real residential investment. The aim is to improve predictive accuracy by first evaluating these forecasts. The results for 1984–2015 reveal that the Federal Reserve and private forecasts are generally free of systematic bias, superior to the naïve benchmark, and predict directional change with high accuracy rates. However, these forecasts do not contain detailed information in consumer home-buying attitudes and expectations. Using a subset of such information and real-time data on residential investment, a knowledge model (KM) is constructed to produce comparable forecasts. The test results indicate that the KM forecasts of growth in residential investment contain distinct and useful predictive information, and the combined Federal Reserve, private, and KM forecasts show reductions in forecast errors that are more significant at longer horizons. As such, we conclude that consumer survey responses help improve forecast accuracy. Given that accurate forecasts contribute to the success of policy, more transparency in Federal Reserve Open Market Committee (FOMC) decisions is encouraged. With more transparency and clear communication, consumers are able to provide more informative responses, which can then be employed to produce more accurate forecasts of growth in residential investment.
Journal: Applied Economics
Pages: 3744-3758
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885613
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885613
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Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3744-3758
Template-Type: ReDIF-Article 1.0
Author-Name: Carla Ferreira
Author-X-Name-First: Carla
Author-X-Name-Last: Ferreira
Author-Name: Lígia M. Costa Pinto
Author-X-Name-First: Lígia M.
Author-X-Name-Last: Costa Pinto
Author-Name: Lina Lourenço-Gomes
Author-X-Name-First: Lina
Author-X-Name-Last: Lourenço-Gomes
Title: Effect of region of origin on willingness to pay for wine: an experimental auction
Abstract:
The purpose of this paper is to examine the effect of the region of origin on wine consumers’ preferences and willingness to pay for wine together with other determinants, using an incentive compatible tool. Data were collected through an experimental auction mechanism in different Portuguese wine regions. Consumers’ willingness to pay for wines from three regions of origin was elicited under two information scenarios: i) blind tasting followed by extrinsic information regarding the region of origin and ii) full information provided at once. Wine consumers characteristics were also collected from a sample of 168 wine consumers. Results reveal that, the region of origin influences the hedonic evaluation of consumers.Consumers are willing to pay higher prices in full information condition, on average. Purchase frequency and less self-reported wine knowledge have a negative effect on the willingness to pay, while taste has a positive effect. Controlling for organoleptic attributes, and the importance of extrinsic cues, the region of origin has a significant influence on willingness to pay, as well as on the hedonic rating, and purchase frequency. This study offers important insights for policy makers regarding the existence of significant preference heterogeneity and the role of the region of origin.
Journal: Applied Economics
Pages: 3715-3729
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885611
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885611
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Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3715-3729
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitrios Kourouklis
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Kourouklis
Title: Public subsidies for R&D and public sector pharmaceutical innovation
Abstract:
This paper investigates the relationship between public subsidies for research and development (R&D) and public sector drug development. For the analyses, a novel dataset based on the European clinical trial registry was created, and panel data between 2007 and 2015 originating from twenty-four countries in the European Union were incorporated. For the econometric analysis, I exploit an exogenous shock coming from the Lisbon strategy on innovation policy in Europe to deal with potential endogeneity issues. Two-stage least squares (2SLS) estimates suggest that an increase in public subsidies causes an increase in Phase I clinical trials for non-orphan drugs and also stimulates basic research and Phases I and II of orphan medicinal product clinical trials. These effects are robust, when different time lags and measures of innovation apply, and they are also robust to heteroscedasticity-based instrument estimations. Overall, the results imply that government funding is an important determinant of the pharmaceutical innovation process across different stages and products. Moreover, foreign sources of government funding have a negative impact on the European clinical trials across the examined phases and innovations, while at the same time, the importance of the potential market-size is low.
Journal: Applied Economics
Pages: 3759-3777
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885614
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885614
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Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3759-3777
Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Title: Insurer acquisition in a narrow-synergy structure and policyholder protection under capital regulation
Abstract:
The article examines the effect of capital regulation on life insurance policyholder protection. The acquisition consists of a standard-call narrow insurance proposal for the acquirer and a barrier-cap synergy insurance proposal for the acquiree. Developing a contingent claim model integrating these features, we conclude that the acquisition creates value for consolidation. We show that the policyholder protection is enhanced under a stringent capital regulation when the consolidated insurer’s leverage is high. The favourable regulatory effect is significant when the premature default risk of the acquiree is high. Our results also suggest that a stringent capital regulation by decreasing the acquirer’s leverage decreases the acquisition incentive while decreasing the acquiree’s leverage increases the motivation. This article discusses the capital regulation effect on insurer acquisition strategies, which depends on both the acquirer’s and acquiree’s management structures.
Journal: Applied Economics
Pages: 3679-3693
Issue: 32
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1885609
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1885609
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Handle: RePEc:taf:applec:v:53:y:2021:i:32:p:3679-3693
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Neugart
Author-X-Name-First: Michael
Author-X-Name-Last: Neugart
Title: The legacy effect of socialism on risky savings
Abstract:
The riskiness of individuals’ saving behaviour affects their old-age wealth and has wider-ranging implications for macroeconomic development and stability. To which extent individuals take financial risks depends on their preferences, which may be moulded by the economic system they live in. I analyse households’ financial risk taking after the collapse of the German Democratic Republic. Conditional on their income and financial wealth positions, East German households were more prone to financial risk taking than West German households after reunification. The differences in risk taking were quantitatively relevant shortly after reunification and gradually vanished until 2008. Risk taking of households who were exposed to the socialist system longer was higher.
Journal: Applied Economics
Pages: 3810-3831
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1887448
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1887448
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Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3810-3831
Template-Type: ReDIF-Article 1.0
Author-Name: Wasseem Mina
Author-X-Name-First: Wasseem
Author-X-Name-Last: Mina
Title: Do Labor Market Flexibility and Efficiency Increase Government Social Protection Expenditures?
Abstract:
This article examines the relationship between labour market flexibility and efficiency and social protection expenditures. Building on the theories of government expenditures and the empirical literature on the determinants of social protection, the article examines empirically the relationship between flexible labour market and social protection expenditures. The empirical model explains social protection mainly in terms of the demand and supply of social protection, modernization theory and political institutions, namely democracy. Labour market flexibility and efficiency indicators include hiring and firing policies, labour-employer cooperation, wage determination flexibility, redundancy costs, linking pay to productivity, reliance on professional management, and the ratio of women in the labour force. We use a sample of 44 developed and emerging economies for the period 2007–2014 and adopt instrumental variables and two-step generalized method of moments estimation methodologies to account for endogeneity. Estimates show that linking pay to productivity, wage flexibility, and redundancy costs reduce social protection expenditures, while the ease of hiring and firing increases them. The article draws attention to the positive impact that flexible and efficient labour markets and organization-level human-resource policies have on reducing social protection expenditures and increasing fiscal space.
Journal: Applied Economics
Pages: 3871-3887
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1888861
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1888861
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Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3871-3887
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel L Thornton
Author-X-Name-First: Daniel L
Author-X-Name-Last: Thornton
Title: The financial crisis: what caused it and when and why it ended
Abstract:
The financial crisis was the second worst in U.S. history. There are a variety of explanations for what caused it, but no consensus. Moreover, there is little agreement about when or why it ended. This paper investigates when and why the financial crisis began and when and why it ended. The analysis shows that the financial crisis was caused by a large reduction in mortgage lending standards which was primarily due to Congresses’ mandate to increase homeownership. The paper provides evidence that the financial crisis was abating by January 2009 and ended when the recession ended in June 2009. The paper argues that neither deliberate monetary nor fiscal policy actions ended it. Rather, it was brought to an end by the unprecedented increase in the monetary base caused by the Fed’s lending to banks and other financial institutions immediately following Lehman Bros. bankruptcy announcement on 15 September 2008. The increase was not a deliberate policy action but an unintended consequence of the fact that the Fed was no longer able to sterilize its lending after Lehman’s bankruptcy announcement. The financial crisis ended because the Fed inadvertently followed Walter Bagehot’s recommendation that during a crisis the central bank should lend freely. The Fed followed Bagehot’s advice in spite of Bernanke’s effort to sterilize the Fed’s lending.
Journal: Applied Economics
Pages: 3854-3870
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1887806
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1887806
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Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3854-3870
Template-Type: ReDIF-Article 1.0
Author-Name: Ju-Hee Kim
Author-X-Name-First: Ju-Hee
Author-X-Name-Last: Kim
Author-Name: Kyung-Ran Choi
Author-X-Name-First: Kyung-Ran
Author-X-Name-Last: Choi
Author-Name: Seung-Hoon Yoo
Author-X-Name-First: Seung-Hoon
Author-X-Name-Last: Yoo
Title: Evaluating the South Korean public perceptions and acceptance of offshore wind farming: evidence from a choice experiment study
Abstract:
The South Korean government is attempting to expand the capacity of offshore wind farming (OWF) from 1.2GW in 2017 to 16.5GW in 2030. Accordingly, the environmental impacts of OWF have become a social issue, and the government needs information about the public acceptance of OWF. This paper seeks to evaluate the public acceptance of OWF in South Korea through a choice experiment (CE). The five attributes chosen are the distance from land to the offshore wind farm (Distance), the number of generators in the offshore wind farm (Number), the height of the generators to be seen above sea level (Height), a decrease in marine life (Life), and the location of the offshore wind farm (Location). The price attribute is an increase in yearly household income tax. A mixed logit model is applied to estimating a utility function from the gathered CE data. All the coefficients for the attributes in the utility are estimated with statistical significance. The sign of the coefficient for Distance is positive, but the signs of all other coefficients are negative. The results of estimating the utility function can be useful in evaluating the environmental impacts of an OWF project from a monetary standpoint.
Journal: Applied Economics
Pages: 3889-3899
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1888862
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1888862
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Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3889-3899
Template-Type: ReDIF-Article 1.0
Author-Name: Qian Li
Author-X-Name-First: Qian
Author-X-Name-Last: Li
Author-Name: Toshiyuki Fujita
Author-X-Name-First: Toshiyuki
Author-X-Name-Last: Fujita
Title: Transfers in international environmental agreements under heterogeneity
Abstract:
This paper analytically compares the effectiveness of internal and external transfers in encouraging participants in international environmental agreements (IEAs). We divide countries into two homogeneous groups: developed and developing countries. Further, we assume that strong asymmetries exist in their abatement benefits and costs. Using the non-cooperative game model of coalition formation, our result shows that both types of transfers can enlarge the size of self-enforcing coalitions, and the external transfers are always preferred.
Journal: Applied Economics
Pages: 3899-3910
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2020.1861209
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861209
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Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3899-3910
Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Berument
Author-X-Name-First: Hakan
Author-X-Name-Last: Berument
Author-Name: Richard T. Froyen
Author-X-Name-First: Richard T.
Author-X-Name-Last: Froyen
Title: The Fisher effect on long-term U.K. interest rates in alternative monetary regimes: 1844-2018
Abstract:
The Fisher Effect is one of the most widely studied relationships in monetary economics. Previous studies have found little evidence of a Fisher effect in pre-World War I data for the United Kingdom. An explanation for this is the near white noise property of the inflation rate under the Classical Gold Standard. There is more evidence of a Fisher effect in the post-World War II years when the inflation rate showed more persistence. This paper studies the evidence on the Fisher effect over the time period 1844-2018. This period covers several distinct monetary regimes. The monetary regime is an important factor determining the time series behavior of the inflation rate which, in turn, has been shown to be crucial to the strength of the Fisher effect. Distinctive features of the study are the focus on the long-term interest rate and coverage of the current inflation targeting regime in the United Kingdom.
Journal: Applied Economics
Pages: 3795-3809
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1886239
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1886239
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Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3795-3809
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaochen Jiang
Author-X-Name-First: Xiaochen
Author-X-Name-Last: Jiang
Author-Name: Jim Huangnan Shen
Author-X-Name-First: Jim Huangnan
Author-X-Name-Last: Shen
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: Toward an empirical investigation of the long-term debt and financing deficit nexus: evidence from Chinese-listed firms
Abstract:
As the literature has studied the financing method of Chinese-listed firms for a long time, but with inconclusive indications, this research thus adopts non-financial Chinese-listed firms’ data from 2003 to 2015 to investigate the relationship between long-term debt financing and financing deficit. We pay particular attention to three channels (ownership concentration, market timing, and state ownership) that potentially affect the adoption of long-term debt financing when there is a financing deficit. The empirical analysis documents a positive relationship between financing deficit and changes in the long-term debt ratio in our sampled firms for both static and dynamic panel models. Moreover, among the three channels we show that state ownership has the strongest positive impact on the adoption of long-term debt financing, followed by ownership concentration, while the weakest channel is the market timing’s negative effect. In general, our empirical analysis finds that the important external financing method of long-term debt is most likely to be impacted by the state ownership aspect.
Journal: Applied Economics
Pages: 3832-3853
Issue: 33
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1887805
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1887805
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Handle: RePEc:taf:applec:v:53:y:2021:i:33:p:3832-3853
Template-Type: ReDIF-Article 1.0
Author-Name: Chengyun Sun
Author-X-Name-First: Chengyun
Author-X-Name-Last: Sun
Author-Name: Don U.A. Galagedera
Author-X-Name-First: Don U.A.
Author-X-Name-Last: Galagedera
Title: Do superannuation funds manage disbursements and risk efficiently in generating returns? New evidence
Abstract:
Superannuation funds (SFs) offer pension programmes in Australia. Generally, employers must pay money in to an SF account in the name of their employees and employees have the freedom to select an SF of their choice. In this paper, we determine how efficiently SFs manage disbursements (costs, fees and expenses) and risk in generating returns to investors from 2017 to 2019. We introduce two measures (disbursement utilization and risk utilization) under the data envelopment analysis (DEA) methodological framework to compare disbursements and risk management performance in relation to overall management performance. The average disbursements utilization is 0.26 and risk utilization is 0.94. On average, more than 80% reduction in disbursements is required to gain disbursement efficiency whereas the average risk reduction required to gain risk-efficiency is less than 20%. No individual SF is disbursement efficient in all five sampled years. Generally, SFs manage disbursements poorly compared to risk in return generation. Variation in fees charged by managed funds is an industry-wide concern. Therefore, how funds manage disbursements is an important consideration for investors. The evidence highlights SF managers the need to pay attention to disbursements management in their pursuit of excellence in overall fund management performance.
Journal: Applied Economics
Pages: 3931-3947
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1888863
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1888863
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Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3931-3947
Template-Type: ReDIF-Article 1.0
Author-Name: Jean Donovan Rasamoelison
Author-X-Name-First: Jean Donovan
Author-X-Name-Last: Rasamoelison
Author-Name: Susan Averett
Author-X-Name-First: Susan
Author-X-Name-Last: Averett
Author-Name: David Stifel
Author-X-Name-First: David
Author-X-Name-Last: Stifel
Title: International student-migrant flows and growth in low- and middle-income countries: brain gain or brain drain?
Abstract:
The number of students flowing from low-income countries to high-income countries has grown over the past several decades but is likely to fall substantially in the coming years due to the coronavirus pandemic. To gauge the potential impact of the coronavirus-induced reduction in the international flow of student migrants, we estimate the pre-pandemic effects of student migration from 122 low- and middle-income countries to French- and English-speaking high-income countries on the economic growth of the sending countries. Using region fixed-effects and instrumental-variables estimators to address the potential endogeneity of student-migrant flows, we find positive and statistically significant effects of student migration on per capita GDP in sending countries. These findings are robust to different time lags, and are increasing over time. Our results indicate that student migrants have a modest but meaningful impact on the short-run economic growth of their home countries. In terms of the mechanisms through which student-migrant flows can affect growth of the home countries, we find evidence of ‘incentive effects’ for students going to English-speaking countries, and evidence of student-migrant flows affecting interest in politics and democratic political systems in the sending countries.
Journal: Applied Economics
Pages: 3913-3930
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1886237
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1886237
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Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3913-3930
Template-Type: ReDIF-Article 1.0
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: International convergence in population happiness: evidence from recent data
Abstract:
In the immense literature on convergence of income and many other variables, this is the first study to consider cross-country convergence in population happiness from large international samples based on data from World Happiness Report (WHR). Three main points stand out. First, WHR data yield significant evidence that is supportive of unconditional beta-convergence in happiness across countries. Second, the evidence is also consistent with sigma-convergence in terms of coefficient of variation. Third, the implied speed of beta-convergence is close to the ‘iron law’ of about 2% per year. Information from World Database of Happiness, which is for earlier years and covers a shorter period, also indicates sigma-convergence in terms of both standard deviation of logarithms and coefficient of variation. It indicates beta-convergence too, but at a slower pace. These findings seem important and reassuring in the context of the frequent worries about lack of income convergence in broad groups of developed and developing countries and the implied possible increase in inequality across countries.
Journal: Applied Economics
Pages: 3984-3991
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1891195
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1891195
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Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3984-3991
Template-Type: ReDIF-Article 1.0
Author-Name: Julian Inchauspe
Author-X-Name-First: Julian
Author-X-Name-Last: Inchauspe
Title: Fiscal policy dynamics under a consolidation constraint: evidence from a sign-restricted SVAR with orthogonalized business cycle and monetary policy for Australia
Abstract:
In this study, I employ a SVAR method that filters out the business cycle and monetary policy to produce conservative but realistic estimates of fiscal responses and multipliers for Australia that are unavailable in the literature. The expenditure and tax multipliers reach a maximum of 0.73 and 0.54, respectively, but their comparison alternates depending on the time horizon. Using a linear combination of fiscal shocks, I construct conjectural variations to analyse the data dynamics and inform policymaking on ways of restoring economic activity post-Covid-19. Importantly, it is demonstrated that a policy that simultaneously increases expenditure and taxes can serve as both a fiscal stimulus and a debt reduction instrument in the medium run, with dynamics subject to a transitory reverse overshooting. This finding is particularly relevant for policymakers that are adverse to increasing public debt with discretionary fiscal measures.
Journal: Applied Economics
Pages: 3992-4016
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1893894
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1893894
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Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3992-4016
Template-Type: ReDIF-Article 1.0
Author-Name: Sy-Hoa Ho
Author-X-Name-First: Sy-Hoa
Author-X-Name-Last: Ho
Author-Name: Jamel Saadaoui
Author-X-Name-First: Jamel
Author-X-Name-Last: Saadaoui
Title: Symmetric and asymmetric effects of exchange rates on money demand: empirical evidence from Vietnam
Abstract:
This empirical investigation aims at exploring the determinants of money demand in Vietnam by using both linear and nonlinear autoregressive distributed lag models over the period spanning from the third quarter of 2000 to the first quarter of 2018. Our findings can be summarized as follows: firstly, when the shock is symmetric (i.e. a permanent nominal appreciation of 1%), the money demand increases by 3.7% in the long term. Secondly, when the shock is asymmetric, for a permanent nominal appreciation of 1%, we observe an increase of 15.6% in the money demand. Whereas for a permanent nominal depreciation of 1%, we observe a decrease of 7.4% in the money demand. These results are consistent with symmetry tests and lead us to think that asymmetries occur mainly in the short run and are transmitted to the long run.
Journal: Applied Economics
Pages: 3948-3961
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1888864
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1888864
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Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3948-3961
Template-Type: ReDIF-Article 1.0
Author-Name: Bianca Biagi
Author-X-Name-First: Bianca
Author-X-Name-Last: Biagi
Author-Name: Steven B. Caudill
Author-X-Name-First: Steven B.
Author-X-Name-Last: Caudill
Author-Name: Laura Ciucci
Author-X-Name-First: Laura
Author-X-Name-Last: Ciucci
Author-Name: Claudio Detotto
Author-X-Name-First: Claudio
Author-X-Name-Last: Detotto
Author-Name: Franklin Mixon
Author-X-Name-First: Franklin
Author-X-Name-Last: Mixon
Title: Relative bargaining power of residential home traders and real estate investors
Abstract:
This study uses a bargaining power model to examine the relative bargaining power of those who self-identify as being either residential home traders or investors, both in the Corsican housing market. In doing so, ours is the first study to measure investment advantages (disadvantages) related to property location and size. Results indicate that investors pay, on average, 6.5–10.5% more and sell, on average, for 6.5–10.5% less than those in the market for primary residences. Findings also show a significant and negative demand effect for investors. Investors are shown to gain more bargaining power as the property size increases and the distance from the sea is longer.
Journal: Applied Economics
Pages: 3962-3971
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1890685
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1890685
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Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3962-3971
Template-Type: ReDIF-Article 1.0
Author-Name: Fabienne Femenia
Author-X-Name-First: Fabienne
Author-X-Name-Last: Femenia
Author-Name: Laure Latruffe
Author-X-Name-First: Laure
Author-X-Name-Last: Latruffe
Author-Name: Jean-Paul Chavas
Author-X-Name-First: Jean-Paul
Author-X-Name-Last: Chavas
Title: Responsiveness of farm investment to price changes: evidence from the French crop sector
Abstract:
In this article, we investigate the investment behaviour of French crop farmers between 2002 and 2014, with a focus on their adjustments to investment prices and farm output prices, which became more volatile after 2007. We estimate an econometric model of farm investment accounting for farm heterogeneity and allowing for change in behavioural parameters after 2007. Our results show evidence of a significant behavioural change in large investments over time, related to a change in farmers’ preferences towards risk, which can explain the relative stability of farm investment over the period, despite the strong increase in crop price levels and in crop price volatility after 2007.
Journal: Applied Economics
Pages: 3972-3983
Issue: 34
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1890686
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1890686
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Handle: RePEc:taf:applec:v:53:y:2021:i:34:p:3972-3983
Template-Type: ReDIF-Article 1.0
Author-Name: Adrián Cabrera
Author-X-Name-First: Adrián
Author-X-Name-Last: Cabrera
Author-Name: Carmelo García-Pérez
Author-X-Name-First: Carmelo
Author-X-Name-Last: García-Pérez
Title: Deprivation levels among people living homeless: a comparative study of Spain and France
Abstract:
This work analyses the deprivation levels of people living homeless in Spain and France before and during the Great Recession. The study uses a multidimensional perspective considering economic, social, and health aspects. To accomplish this, we obtain several indicators using the counting approach methodology and stochastic dominance techniques with statistical inference. Finally, the main factors that influence the probability of being multidimensionally deprived are analysed. The results of the study show that, although health and social dimensions have a particular relevance, indicators related to social assistance and housing instability have a greater influence on their situation. These results are intended to contribute better knowledge of an understudied group and to guide the design of future public policies.
Journal: Applied Economics
Pages: 4118-4133
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897074
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897074
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Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4118-4133
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge M. Uribe
Author-X-Name-First: Jorge M.
Author-X-Name-Last: Uribe
Author-Name: Helena Chuliá
Author-X-Name-First: Helena
Author-X-Name-Last: Chuliá
Title: Asymmetric volatility spillovers and consumption risk-sharing
Abstract:
Recent studies show that international financial integration facilitates cross-country consumption risk-sharing. We extend this line of research and demonstrate that breaking financial integration down into good and bad integration is important. We also propose new measures of capital market integration, based on good and bad volatility shocks, as well as country-specific indices of consumption risk-sharing. We document a decoupling of individual consumption growth from global risk-sharing after episodes of bad volatility cross-spillovers, and a recoupling after good spillovers. Our results support current views in the literature that advocate an asymmetric treatment of good and bad volatility shocks, in order to assess the macroeconomic dynamics that follow risk episodes. They also challenge previous views that present capital market integration (without differentiating between good and bad shocks) as a prerequisite for higher international consumption risk-sharing. Overall, our outcomes cast some doubt on the actual scope for consumption risk-sharing across global financial markets.
Journal: Applied Economics
Pages: 4100-4117
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897073
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897073
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Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4100-4117
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaokang Zhao
Author-X-Name-First: Xiaokang
Author-X-Name-Last: Zhao
Author-Name: Guanghe Ran
Author-X-Name-First: Guanghe
Author-X-Name-Last: Ran
Author-Name: Bing Shen
Author-X-Name-First: Bing
Author-X-Name-Last: Shen
Author-Name: Xiaolong Li
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Li
Title: Do ETFs Improve the pricing efficiency of the A-share market—examining ETF holdings of individual stocks
Abstract:
Given the efficiency loss regarding the Chinese capital market, it is necessary to examine ways to improve pricing efficiency. Thus, this study considers A-share market listed companies (2005–2019) and adopts the proxy variable of pricing efficiency from the price adjustment speed to examine the effect of exchange traded funds (ETFs) holding shares on stock pricing efficiency. It also examines the effect of ETFs’ entry and exit regarding the underlying stocks on the stock pricing efficiency relative to traditional mutual funds. Accordingly, the pricing efficiency of ETF-holding stocks is significantly higher than that of stocks not held by ETFs. Pricing efficiency is significantly improved after ETFs enter the underlying stocks. Contrarily, there is a significant decline in pricing efficiency when ETFs exit the underlying stocks. Moreover, whereas ETFs can help improve the pricing efficiency of the Chinese stock market, traditional mutual funds have somewhat harmed market pricing efficiency. Further, mediating effect model tests showed that ETF improves the stock pricing efficiency mainly via a trading rather than a governance channel. Thus, this study provides a new theoretical basis for improving the pricing efficiency of China’s capital market.
Journal: Applied Economics
Pages: 4134-4147
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897075
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897075
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Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4134-4147
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth W. Clements
Author-X-Name-First: Kenneth W.
Author-X-Name-Last: Clements
Author-Name: Marc Jim M. Mariano
Author-X-Name-First: Marc Jim M.
Author-X-Name-Last: Mariano
Author-Name: George Verikios
Author-X-Name-First: George
Author-X-Name-Last: Verikios
Title: Foreign-domestic substitution, import penetration and CGE modelling
Abstract:
Foreign-domestic substitution elasticities (the so-called ‘Armington elasticities’) determine the degree of competitiveness in demand between similar products produced in different countries and are key parameters in a variety of numerical models of international trade. Armington elasticities are part of the explanation of the large increases in market shares of foreign products relative to locally produced ones in Australia, for example. The existing literature provides only limited evidence on these elasticities for Australia with the most disaggregated produced some time ago in 1977 by Alaouze and colleagues.This paper provides up-to-date parametric estimates of Armington elasticities for Australia with a reasonable degree of sectoral disaggregation. We use 22-years of data for 20 types of merchandise commodities, using OLS, panel and restricted-panel approaches. Our estimates range from 0.30 to 2.26, with higher elasticities for Transport and Equipment products and lower ones for Energy and Minerals. We illustrate the use of our elasticities with a trade-policy simulation using a computable generable equilibrium model of the Australian economy. We analyse the sensitivity of the results to the Armington elasticities by also using the previous estimates of Alaouze and colleagues. We find an overestimation of economic effects when using the old Armington values.
Journal: Applied Economics
Pages: 4080-4099
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897072
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897072
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Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4080-4099
Template-Type: ReDIF-Article 1.0
Author-Name: Simona Ferraro
Author-X-Name-First: Simona
Author-X-Name-Last: Ferraro
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Author-Name: Mara Soncin
Author-X-Name-First: Mara
Author-X-Name-Last: Soncin
Title: Local governments’ efficiency and educational results: empirical evidence from Italian primary schools
Abstract:
In Italy, the provision of educational ancillary services (like meals and school transportation) is in charge of the municipalities. We investigate whether municipalities differ in their efficiency when providing these services and whether such heterogeneity explains some portion of the variability observed in pupils’ test scores. This paper is the first application of a non-parametric order-$${\rm{m}}$$m model and a two-stage multilevel regression model to a unique administrative dataset, made up of the entire population of Italian pupils tested in reading and mathematics at grade 5 (academic years 2012/2013 and 2014/2015). Results demonstrate that local governments have different efficiency levels in providing services to schools. The test scores’ variability among pupils is not explained by different efficiency levels of local government in producing ancillary services.
Journal: Applied Economics
Pages: 4017-4039
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1896672
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1896672
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Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4017-4039
Template-Type: ReDIF-Article 1.0
Author-Name: Michael T. French
Author-X-Name-First: Michael T.
Author-X-Name-Last: French
Author-Name: Karoline Mortensen
Author-X-Name-First: Karoline
Author-X-Name-Last: Mortensen
Author-Name: Andrew R. Timming
Author-X-Name-First: Andrew R.
Author-X-Name-Last: Timming
Title: A multivariate analysis of workplace mentoring and socializing in the wake of #MeToo
Abstract:
This paper examines workplace mentoring and socializing behaviours in the wake of #MeToo and whether these practices might be associated with women’s career trajectories. To address this important and timely topic, we fielded two surveys, one to managers (n = 203) and the other to female employees (n = 1,847), asking several questions about mentoring and male/female work interactions. Descriptive statistics show that 32% of the female employee sample report that their views on male/female work interactions are different today than they were 1–2 years ago. Multivariate analyses of the manager sample indicate that male managers are significantly less likely than female managers to mentor or interact one-on-one with female employees. The implication of these findings is that female employees may face a mentoring disadvantage in the wake of #MeToo. The adverse effects for career growth and advancement for female employees could be profound.
Journal: Applied Economics
Pages: 4040-4058
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1896673
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1896673
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Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4040-4058
Template-Type: ReDIF-Article 1.0
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Karim Mimouni
Author-X-Name-First: Karim
Author-X-Name-Last: Mimouni
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Akram Temimi
Author-X-Name-First: Akram
Author-X-Name-Last: Temimi
Title: Do economic downturns affect air pollution? Evidence from the global financial crisis
Abstract:
This paper investigates the impact of the 2008 global financial crisis on CO2 emissions within the Environmental Kuznets Curve hypothesis framework. Using a sample of 68 countries for the period 1960 to 2014, we unveil novel findings according to which the crisis had permanent effects on CO2 emissions. These effects vary by countries’ income level. Our findings reveal that the 2008 crisis decreased the turning point for high-income countries and increased the turning points for middle- and low-income countries. Furthermore, we find that the magnitudes in the shifts of the turning points depend on the severity of the crisis. Our results are robust to the inclusion of trade and financial development as additional explanatory variables and to the choice of the crisis inflection year.
Journal: Applied Economics
Pages: 4059-4079
Issue: 35
Volume: 53
Year: 2021
Month: 07
X-DOI: 10.1080/00036846.2021.1897071
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897071
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Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4059-4079
Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Yu
Author-X-Name-First: Xiao
Author-X-Name-Last: Yu
Author-Name: Xiangbin Cheng
Author-X-Name-First: Xiangbin
Author-X-Name-Last: Cheng
Author-Name: Kuo Zhang
Author-X-Name-First: Kuo
Author-X-Name-Last: Zhang
Author-Name: Jipeng Pei
Author-X-Name-First: Jipeng
Author-X-Name-Last: Pei
Author-Name: Karlis Rokpelnis
Author-X-Name-First: Karlis
Author-X-Name-Last: Rokpelnis
Title: Finding trustworthy common ground: analysis of Chinese trust in Americans (2012–2018)
Abstract:
Using four waves of CFPS data from 2012 to 2018, we focused on the degree of Chinese individuals’ trust in Americans, and found that the Chinese interviewees were ‘very distrustful’ Americans. We employed the random-effects ordered probit method to estimate the model, and made the following key conclusions: in terms of individual characteristics, (1) gender factors affect Chinese trust in Americans, the degree of trust among males is higher than that among females; (2) the Chinese individuals’ trust in Americans gradually decreases with the advance of age; (3) the level of education has a positive correlation with international trust. Meanwhile, socioeconomic factors play an important role in explaining the degree of Chinese individuals’ trust in Americans. Chinese individuals with higher social status and relative income are more likely to trust Americans. Moreover, the attitude and evaluation of individuals towards the government are also worthy of attention. Importantly, in contrast to earlier published findings, we found that Chinese Communist Party members were more likely to trust Americans, while military veterans, however, have a low degree of trust in American people, which might be highly correlated with the China–US political relations.
Journal: Applied Economics
Pages: 4229-4244
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897735
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897735
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Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4229-4244
Template-Type: ReDIF-Article 1.0
Author-Name: Bhushan Praveen Jangam
Author-X-Name-First: Bhushan Praveen
Author-X-Name-Last: Jangam
Author-Name: Badri Narayan Rath
Author-X-Name-First: Badri Narayan
Author-X-Name-Last: Rath
Title: Do global value chains enhance or slog economic growth?
Abstract:
This paper examines the link between trade and economic growth by emphasizing on recent progress of global value chains (GVCs) for a sample of 58 countries over the period 2005–2015. The findings show that trade and in particular trade linked to GVCs spurs economic growth. However, the impact of GVC engagement on economic growth is diverse as we broaden our analysis to sectoral level. The study also notes that the benefits associated with regional value chains are higher. Furthermore, functional specialization in trade also plays a key role in improving growth. Therefore, policies to promote the GVC engagement and strengthening the domestic fundamentals should be the aim for countries to further benefit from trade.
Journal: Applied Economics
Pages: 4148-4165
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897076
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897076
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Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4148-4165
Template-Type: ReDIF-Article 1.0
Author-Name: Zucheng Zhao
Author-X-Name-First: Zucheng
Author-X-Name-Last: Zhao
Author-Name: Charles Sutcliffe
Author-X-Name-First: Charles
Author-X-Name-Last: Sutcliffe
Title: What determines the asset allocation of defined benefit pension funds?
Abstract:
The asset allocation decision is one of the most important decisions made by defined benefit pension schemes, with a major effect on the scheme contribution rate, funding ratio and financial position of the sponsoring company. We investigate the determinants of the equity allocation of UK pension funds using a panel of 1,304 observations on 125 companies that were members of the FTSE 100 over the 2003–2019 period. We find that seven variables have a significant effect on the allocation between equities and bonds – maturity (as measured by the effective duration of scheme liabilities), default risk, leverage of the sponsor, size of the sponsor (or the scheme), whether the scheme is closed to future contributions, whether the scheme has significant overseas liabilities, and a time trend. Our sensitivity analysis finds that the biggest effects on the asset allocation come from scheme maturity, the scheme’s funding ratio and a time trend.
Journal: Applied Economics
Pages: 4178-4191
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897512
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897512
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Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4178-4191
Template-Type: ReDIF-Article 1.0
Author-Name: Ronny Freier
Author-X-Name-First: Ronny
Author-X-Name-Last: Freier
Author-Name: Michal Myck
Author-X-Name-First: Michal
Author-X-Name-Last: Myck
Author-Name: Mateusz Najsztub
Author-X-Name-First: Mateusz
Author-X-Name-Last: Najsztub
Title: Lights along the frontier: convergence of economic activity in the proximity of the Polish-German border, 1992–2012
Abstract:
This paper studies regional economic development on the municipality-level in Poland and Germany along the Oder–Neisse border. We use high-quality satellite night-time light intensity data as an innovative and comparable measure to proxy for overall economic activity on both sides of the border consistently over a long period of time (1992–2012). We use descriptive heat maps as well as regression analysis to investigate two aspects: first, how far is the economic convergence along the Polish-German border? Second, what effect does the distance to the border have on economic activity as measured with light emissions? Our findings suggest that convergence in overall activity across the border has been complete. Polish municipalities that used to be economically much weaker have caught up with those on the German side of the Oder and the Neisse rivers. As regards the importance of distance, we highlight different results for Germany and Poland. While distance to the border never mattered significantly for German regions, Polish municipalities closer to the border used to be substantially worse off in the early 1990s but caught up with regions further to the east by the end of the period of our analysis.
Journal: Applied Economics
Pages: 4245-4262
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1898534
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1898534
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Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4245-4262
Template-Type: ReDIF-Article 1.0
Author-Name: Daniel Huerta-Sanchez
Author-X-Name-First: Daniel
Author-X-Name-Last: Huerta-Sanchez
Author-Name: Thanh N. Ngo
Author-X-Name-First: Thanh N.
Author-X-Name-Last: Ngo
Author-Name: Mark K. Pyles
Author-X-Name-First: Mark K.
Author-X-Name-Last: Pyles
Title: Institutional ownership and REIT acquisitions
Abstract:
We examine the relationship between institutional ownership and Real Estate Investment Trust (REIT) acquisitions. We find that REITs with relatively higher levels of pre-event institutional ownership are more likely to partake in acquisitions. We additionally find that levels of institutional ownership significantly increase post-acquisitions even after controlling for other relevant factors. This increase is driven by longer-term and passive institutional investors. Further, we find positive influences from the increase in institutional ownership on both market and accounting performance, however, this is driven by increases in short-term and active institutional investor levels. Collectively, our results suggest a significant influence by institutional investment on REIT acquisition decisions that has a significant effect on shareholder wealth.
Journal: Applied Economics
Pages: 4207-4228
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897514
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897514
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Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4207-4228
Template-Type: ReDIF-Article 1.0
Author-Name: Hongyun Zheng
Author-X-Name-First: Hongyun
Author-X-Name-Last: Zheng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Title: Click it and buy happiness: does online shopping improve subjective well-being of rural residents in China?
Abstract:
There is a growing trend for rural residents to shop online, but little is known about how online shopping is associated with their subjective well-being. To fill this gap, in this study, we estimate the impact of online shopping on the subjective well-being of rural residents, using survey data collected from China. An endogenous ordered probit (EOP) model is employed to address the selection bias associated with online shopping. The empirical results reveal that online shopping significantly increases rural residents’ happiness and life satisfaction. The more rural residents spend on online shopping, the happier they are. Disaggregated analysis indicates that online shopping has greater positive impacts on the subjective well-being of lower-income residents (at household income tertile 1), relative to their higher-income counterparts (at household income tertiles 2–3). Our findings suggest that developing rural-targeted online shopping markets can improve the subjective well-being of rural residents and boost rural consumption upgrading.
Journal: Applied Economics
Pages: 4192-4206
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897513
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897513
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Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4192-4206
Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Title: A contingent claim model of life insurer-bank swap default pricing: strategic substitutes and complements
Abstract:
This paper develops a contingent claim framework to examine swap transactions between a life insurer and a bank that bilaterally price default risks. We show that the insurer (the protection buyer in the swap transaction market) regards the optimal bank loan rate as a strategic complement. In contrast, the bank (the protection seller) considers the optimal insurer guaranteed rate as a strategic substitute. Hedging conducted by the insurer enhances profits but hurts policyholder protection. Bank capital regulation harms policyholder protection. Insurer capital regulation leads to bank risk-taking. Capital regulations, as such, would jeopardize insurer-bank performance from a financial stability standpoint.
Journal: Applied Economics
Pages: 4166-4177
Issue: 36
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1897077
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1897077
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Handle: RePEc:taf:applec:v:53:y:2021:i:36:p:4166-4177
Template-Type: ReDIF-Article 1.0
Author-Name: Na Liu
Author-X-Name-First: Na
Author-X-Name-Last: Liu
Author-Name: Zuoliang Ye
Author-X-Name-First: Zuoliang
Author-X-Name-Last: Ye
Title: Empirical research on the blockchain adoption – based on TAM
Abstract:
Among the modern digital technologies that are reshaping many aspects of our society, blockchain is one of the most innovative, and this cutting-edge technology has drawn a great deal of public attention. However, little research is available on the actual effect of trust, which is a key core attraction for the blockchain technology. Furthermore, few studies have investigated the relationship between trust and user acceptance. In this paper, we develop a research model based on the technology acceptance model (TAM) and the core features of blockchain technology, and we conduct an empirical study. We collect 254 questionnaires about blockchain applications and analyse the responses with SmartPLS3.0. The results show that constructs such as trust and information quality have positive effects on the users’ behavioural intentions, except in terms of output quality. The findings have both theoretical significance and empirical insights, which will be helpful for the further development of blockchain theory while guiding the operation of relevant enterprises.
Journal: Applied Economics
Pages: 4263-4275
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1898535
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1898535
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Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4263-4275
Template-Type: ReDIF-Article 1.0
Author-Name: Zhenlong Miao
Author-X-Name-First: Zhenlong
Author-X-Name-Last: Miao
Title: Digital economy value chain: concept, model structure, and mechanism
Abstract:
The paper breaks through the existing research on digital economy and value chain, puts forward to digital economy value chain (DEVC) for the first time, discusses the connotation, value activity composition, and value chain characteristics of the digital economy value chain. Digital Economy Value Chain is the innovation of the value chain driven by digital elements (data, digital technology, digital mode, etc.) and the integration of the digital economy and value chain. Its foothold in the digital elements and its essence is the chain organization of value creation activities of the digital economy. Every value-added link of the digital economy value chain can realize value creations. The flow direction of the value chain is the process of value creation and value transfer. At the same time, this study attempts to analyse the operation mechanism of the digital economy value chain. This paper analyzes the formation mechanism, transmission mechanism, and the working mechanism of the digital economy value chain, reveals the operation mechanism of the digital economy value chain, and constructs a complete theoretical framework of the digital economic value chain.
Journal: Applied Economics
Pages: 4342-4357
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899121
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899121
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Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4342-4357
Template-Type: ReDIF-Article 1.0
Author-Name: Tianyang Li
Author-X-Name-First: Tianyang
Author-X-Name-Last: Li
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Ming Men
Author-X-Name-First: Ming
Author-X-Name-Last: Men
Title: Size effect in China
Abstract:
This study seeks to explain the size effect in China. Our empirical results indicate that, after eliminating the smallest 30% of firms, the size premium is largely explained by the risk exposures of small firms to market and value factors, that cannot produce a unique alpha. Moreover, we find that the size premium is largest among high-quality and low-turnover stocks but becomes negligible after controlling for liquidity; the size effect is affected by how firm size is measured, and the price-based measure yields a more significant size premium than those yielded by fundamental-based measures; and strict IPO constraints result in shell values making up a large proportion of stock capitalization among small listed firms, and the shell value falsifies the measure of the size effect. Given that the registration system has been steadily promoted in the new STAR market, our results suggest that the shell values among stocks will decrease significantly, which has a long-term influence on the size effect in China.
Journal: Applied Economics
Pages: 4358-4370
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899122
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899122
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Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4358-4370
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolei Sun
Author-X-Name-First: Xiaolei
Author-X-Name-Last: Sun
Author-Name: Qianqian Feng
Author-X-Name-First: Qianqian
Author-X-Name-Last: Feng
Author-Name: Jianping Li
Author-X-Name-First: Jianping
Author-X-Name-Last: Li
Title: Understanding country risk assessment: a historical review
Abstract:
Country risk reflects a country’s overall risk status, and it has an extremely important impact on global investment and trade between countries. This study is conducted to examine country risk analysis and assessment models. The historical stages of country risk assessment are characterized, and the development and application of country risk analysis and assessment techniques are reviewed. Country risk assessment modelling techniques developed in two major frameworks: Multi-criteria decision-making framework based on macroeconomic fundamentals and asset pricing framework based on market information. Based on our analysis, we identify current trends and research gaps, as well as relevant future research directions.
Journal: Applied Economics
Pages: 4329-4341
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899120
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899120
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Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4329-4341
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojun Shi
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Shi
Author-Name: Changyun Wang
Author-X-Name-First: Changyun
Author-X-Name-Last: Wang
Author-Name: Teng Zhong
Author-X-Name-First: Teng
Author-X-Name-Last: Zhong
Title: Can public medical insurance promote rural entrepreneurship? Evidence from China
Abstract:
Using China’s National Cooperative Medical Scheme (NCMS), a heavily subsided public medical insurance (PMI) scheme, aiming at covering all rural populations in China, as a quasi-natural experiment, we find that PMI unleashes entrepreneurship in the rural economy. This finding provides supporting evidence for Arrow’s risk-shifting theory and enriches the literature on the effect of PMI that has focused mainly on health impact and consumption smoothing. We also demonstrate that PMI increases entrepreneurial investments primarily through the channel of wealth effect resulting from reduced out-of-pocket medical expenses. Besides, the entrepreneurship cultivation effect of PMI is more pronounced among rural households that are wealthier, have fuller insurance coverage, or have younger heads.
Journal: Applied Economics
Pages: 4292-4309
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899118
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899118
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Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4292-4309
Template-Type: ReDIF-Article 1.0
Author-Name: W. David Allen
Author-X-Name-First: W. David
Author-X-Name-Last: Allen
Title: Crime, Universities and Campus Police
Abstract:
Crime motivates self-protection, such as undertaken quite visibly by individuals, households, and businesses. But we know much less about self-protection by public institutions, including schools, especially from an economic perspective. This paper examines how universities use campus police for that purpose. Conceptually, self-protection reduces vulnerability to crime but incurs costs whether a victimization happens or not; an actual crime further imposes a victimization cost. The agent (university administration) determines the equilibrium level of self-protection within this analytical environment. Empirical analysis of a two-year panel of U.S. universities reveals increased campus police use given larger external and internal crime threats and in the presence of better students and faculty. Larceny appears particularly influential, but the violent crimes of rape and aggravated assault do not. Extended analysis reveals that schools plagued by burglary and vehicle theft on campus utilize significantly more ancillary, procedural protections such as night-time police escorts. Larger-acreage, larger-enrolment, and religious-affiliated universities exhibit the most ongoing vulnerability to crime, showing significantly lesser campus police use even when facing higher internal crime threats.
Journal: Applied Economics
Pages: 4276-4291
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899117
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899117
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Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4276-4291
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Sensoy
Author-X-Name-First: Ahmet
Author-X-Name-Last: Sensoy
Author-Name: Thiago Christiano Silva
Author-X-Name-First: Thiago Christiano
Author-X-Name-Last: Silva
Author-Name: Shaen Corbet
Author-X-Name-First: Shaen
Author-X-Name-Last: Corbet
Author-Name: Benjamin Miranda Tabak
Author-X-Name-First: Benjamin Miranda
Author-X-Name-Last: Tabak
Title: High-frequency return and volatility spillovers among cryptocurrencies
Abstract:
We examine the high-frequency return and volatility of major cryptocurrencies and reveal that spillovers among them exist. Our analysis shows that return and volatility clustering structures are distinct among different cryptocurrencies, suggesting that return and volatility might have different spillover patterns. Further investigation via minimal spanning trees points out that BTC, LTC and ETH are the most relevant cryptocurrencies in general, serving as connection hubs for linking many other cryptocurrencies. However, their role is challenged lately, potentially due to the increased usage of other cryptocurrencies in time.
Journal: Applied Economics
Pages: 4310-4328
Issue: 37
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1899119
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1899119
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Handle: RePEc:taf:applec:v:53:y:2021:i:37:p:4310-4328
Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin M. Blau
Author-X-Name-First: Benjamin M.
Author-X-Name-Last: Blau
Author-Name: Todd G. Griffith
Author-X-Name-First: Todd G.
Author-X-Name-Last: Griffith
Author-Name: Ryan J. Whitby
Author-X-Name-First: Ryan J.
Author-X-Name-Last: Whitby
Title: Income inequality and the volatility of stock prices
Abstract:
We examine the link between income inequality and the price volatility of American Depository Receipts (ADRs). Using a large sample of ADRs across 37 countries, we find that income inequality is negatively associated with ADR volatility. To draw stronger causal inferences, we use the implementation of the French ‘Millionaire Tax’ as a negative shock to the perceived level of income inequality in France. In difference-in-difference tests, we find that volatility for French ADRs vis-à-vis non-French ADRs increased by at least 4.85 percentage points after the tax change. Therefore, instead of creating political and social uncertainty, income inequality has a stabilizing influence on the volatility of stock prices, which we argue is a result of higher-skilled human capital.
Journal: Applied Economics
Pages: 4404-4416
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904110
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904110
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Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4404-4416
Template-Type: ReDIF-Article 1.0
Author-Name: Yaniv Reingewertz
Author-X-Name-First: Yaniv
Author-X-Name-Last: Reingewertz
Author-Name: Adi Shany
Author-X-Name-First: Adi
Author-X-Name-Last: Shany
Title: Education resources and student performance: evidence from Arab municipalities in Israel
Abstract:
This paper is offering a new identification strategy in order to estimate the effect of education resources on students’ achievements at the municipal level. We use the appointment of an external accountant to financially distressed municipalities in Israel as an instrumental variable for independent education expenditures, and control for selection bias. We find that the decline in independent education expenditures per capita in Arab municipalities did not affect the share of matriculation certification recipients. This result suggests that changes in municipal education resources might not affect students’ achievements, at least in less-developed municipalities.
Journal: Applied Economics
Pages: 4386-4403
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904109
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904109
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Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4386-4403
Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Oddo
Author-X-Name-First: Luigi
Author-X-Name-Last: Oddo
Author-Name: Mile Bosnjak
Author-X-Name-First: Mile
Author-X-Name-Last: Bosnjak
Title: A comparative analysis of the monetary policy transmission channels in the U.S: a wavelet-based approach
Abstract:
This paper evaluates competing approaches to assess the effectiveness of transmission channels for the U.S. monetary policy from 1°Q 1995 to 3°Q 2019. While evaluating the competing approaches, the paper follows wavelet coherence approach providing results in time and frequency domain. The results show how money and credit channels work quite well during low volatile periods generally, whereas they suggest that these channels are less effective during periods of financial turmoil and very low interest rate. However, investment-based channels and the bank-lending channel revisited version show some effects also during periods of instability. In more detail, investment-based channels and the bank-lending channel revisited appear to be the most effective monetary policy transmission mechanisms, while the traditional banking-lending channel seems effective only in low volatile periods. Finally, the results for consumption-based channels and international trade-based channels show the least effectiveness.
Journal: Applied Economics
Pages: 4448-4463
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904113
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904113
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Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4448-4463
Template-Type: ReDIF-Article 1.0
Author-Name: Javier Scavia
Author-X-Name-First: Javier
Author-X-Name-Last: Scavia
Author-Name: Pedro Fernández De La Reguera
Author-X-Name-First: Pedro
Author-X-Name-Last: Fernández De La Reguera
Author-Name: Josephine E. Olson
Author-X-Name-First: Josephine E.
Author-X-Name-Last: Olson
Author-Name: Nahuel Pezoa
Author-X-Name-First: Nahuel
Author-X-Name-Last: Pezoa
Author-Name: Werner Kristjanpoller
Author-X-Name-First: Werner
Author-X-Name-Last: Kristjanpoller
Title: The impact of cultural trade on economic growth
Abstract:
The relationship between international trade and economic growth has been an area of interest to many researchers in recent years. Although the literature is broad with respect to this topic, few studies have focused on the particular effect of cultural exports and imports on economic growth. This study addresses the relationship between trade in cultural goods and economic growth for 31 countries in Europe for the period 2004–2017, through a vector error correction model (VECM). A panel Granger causality test and a system generalized method of moments (GMM) are also utilized in this study. Cultural trade is characterized by exports and imports of cultural goods. The results indicate there is a long-run equilibrium relationship between gross domestic product, total exports, capital formation and labour force. Cultural exports and imports have a positive effect on GDP in the long run. In the short run, there is Granger causality of cultural imports on economic growth, total exports, total imports and capital formation.
Journal: Applied Economics
Pages: 4436-4447
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904112
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904112
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Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4436-4447
Template-Type: ReDIF-Article 1.0
Author-Name: Ranpati Dewage Thilini Sumudu Kumari
Author-X-Name-First: Ranpati Dewage Thilini Sumudu
Author-X-Name-Last: Kumari
Author-Name: Sam Hak Kan Tang
Author-X-Name-First: Sam Hak Kan
Author-X-Name-Last: Tang
Author-Name: Shawn Xiaoguang Chen
Author-X-Name-First: Shawn Xiaoguang
Author-X-Name-Last: Chen
Author-Name: Bei Li
Author-X-Name-First: Bei
Author-X-Name-Last: Li
Title: Misallocation and productivity slowdown over two decades: evidence from Sri Lanka
Abstract:
We investigate the effect of misallocation induced by firm-specific distortions on aggregate productivity and long-run TFP growth. Using a new firm-level dataset from Sri Lanka’s manufacturing surveys spanning over two decades and a standard model of misallocation, we show that when misallocation is eliminated, the aggregate manufacturing productivity could be boosted by 102% during 1994–2015. In addition, we find that the allocative efficiency exhibits a declining trend over time, and this rising misallocation could explain 55% of the manufacturing TFP growth slowdown in Sri Lanka. We further explore the underlying causes of the rising misallocation by quantitatively analysing the contributions of different types of firms and distortions in different markets. In the end, we qualitatively discuss potential fundamental sources in institutions and policies. Our results reveal that misallocation can be a mechanism underlying the growth slowdown of many emerging economies a decade after the liberalization reform since the late 1970s.
Journal: Applied Economics
Pages: 4417-4435
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904111
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904111
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Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4417-4435
Template-Type: ReDIF-Article 1.0
Author-Name: Xin Chen
Author-X-Name-First: Xin
Author-X-Name-Last: Chen
Author-Name: He Xiao
Author-X-Name-First: He
Author-X-Name-Last: Xiao
Author-Name: Yifei Zhang
Author-X-Name-First: Yifei
Author-X-Name-Last: Zhang
Title: To what extent did independent directors help firms’ recovery during the COVID-19 pandemic? Evidence from China
Abstract:
To what extent did independent directors help firms’ recovery during the COVID-19 pandemic? In this paper, we answer this question by investigating whether independent directors contribute to Chinese listed firms’ operation income growth during the first and second quarters of the year 2020. By employing a triple difference-in-differences (DDD) estimation strategy, we show that firms located in more pandemic-affected regions experienced a more pronounced operating recovery if they receive more independent directors’ opinions and have fewer female and busy directors. The possible reason is that those female and busy directors were likely to be distracted during the pandemic outbreak. We also provide evidence that firms paying higher remunerations to independent directors tend to recover quicker. Moreover, independent directors’ age and education level positively contribute to firms’ recovery. Our work is among the first to study independent directors’ role in shaping firms’ operation performance under the COVID-19.
Journal: Applied Economics
Pages: 4464-4480
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904114
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904114
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Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4464-4480
Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Han Liu
Author-X-Name-First: Wei-Han
Author-X-Name-Last: Liu
Author-Name: Jow-Ran Chang
Author-X-Name-First: Jow-Ran
Author-X-Name-Last: Chang
Title: Revisiting and refining the comparison of conventional and islamic markets’ performance
Abstract:
With a refined version of almost stochastic dominance (ASD), we explore the performance-comparison issues between traditional markets and Islamic markets in terms of industry and business condition. The empirical outcomes indicate that Shariah compliance makes both the consumer services and finance industries in Islamic markets outshine other industries and outperform the corresponding industries in traditional markets. Except for the period before the Global Financial Crisis (GFC) in 2008, Islamic markets prevail over traditional markets in bearish (2007–2012) and persistently bullish (2013–2017) periods. These contrasts indicate that Islamic markets have emerged as a superior investment alternative since the GFC.
Journal: Applied Economics
Pages: 4371-4385
Issue: 38
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1900533
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1900533
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Handle: RePEc:taf:applec:v:53:y:2021:i:38:p:4371-4385
Template-Type: ReDIF-Article 1.0
Author-Name: Louinord Voltaire
Author-X-Name-First: Louinord
Author-X-Name-Last: Voltaire
Title: Respondent direct experience and contingent willingness to pay for new commodities: a switching endogenous interval regression analysis
Abstract:
Most environmental economists argue that direct experience with the good being valuated, or with similar goods, is a precondition for providing valid willingness to pay (WTP) responses to contingent valuation questions. Two questions are posed in this article. The first is whether previous use experience of a resource (Séné nature reserve) similar to that being valuated (future nature reserves) and located in the same geographical area (Gulf of Morbihan) impacts on WTP. The second is whether accounting for the endogeneity of direct experience matters in the estimation of WTP. We find that respondents who have not experienced the Séné nature reserve provide value estimates that are statistically comparable to that of respondents who have experienced it. Our assumption is that respondents have acquired sufficient and adequate experience of future nature reserves from the questionnaire that experience obtained by experiencing the Séné nature reserve was not necessary for making a valid value formulation. Hence, aggregation of WTP estimates to obtain a total valuation of the future nature reserves is reasonable over the full target population. In addition, our results show that direct experience is endogenously determined; but controlling for the endogeneity has a marginal effect on WTP estimates.
Journal: Applied Economics
Pages: 2235-2249
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2014.1002890
File-URL: http://hdl.handle.net/10.1080/00036846.2014.1002890
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Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2235-2249
Template-Type: ReDIF-Article 1.0
Author-Name: Lik Fong
Author-X-Name-First: Lik
Author-X-Name-Last: Fong
Author-Name: Chulwoo Han
Author-X-Name-First: Chulwoo
Author-X-Name-Last: Han
Title: Impacts of derivative markets on spot market volatility and their persistence
Abstract:
In this article, we investigate the impacts of futures and options markets on the volatility of the underlying market. Unlike earlier studies, the focus is on their persistence over time. Tests on the Hang Seng index yield several interesting results that often contrast with previous findings. Empirical results suggest that the quality of new information generated by derivative trading determines the impacts on the spot market volatility. The futures market provides new, material information reducing spot market volatility. The Options market, on the other hand, generates noisy information and distorts price, which is followed by an increase in volatility and a decrease in its sensitivity to price change. While the impact of futures persists, that of options mostly disappears as the market matures. Our conjecture is that the futures market is mainly driven by informed, experienced participants, while the options market attracts new, inexperienced investors.
Journal: Applied Economics
Pages: 2250-2258
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005813
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005813
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Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2250-2258
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Stephen M. Miller
Author-X-Name-First: Stephen M.
Author-X-Name-Last: Miller
Title: The out-of-sample forecasting performance of nonlinear models of regional housing prices in the US
Abstract:
This article provides out-of-sample forecasts of linear and nonlinear models of US and four Census subregions’ housing prices. The forecasts include the traditional point forecasts, but also include interval and density forecasts, of the housing price distributions. The nonlinear smooth-transition autoregressive model outperforms the linear autoregressive model in point forecasts at longer horizons, but the linear autoregressive and nonlinear smooth-transition autoregressive models perform equally at short horizons. In addition, we generally do not find major differences in performance for the interval and density forecasts between the linear and nonlinear models. Finally, in a dynamic 25-step ex-ante and interval forecasting design, we, once again, do not find major differences between the linear and nonlinear models. In sum, we conclude that when forecasting regional housing prices in the United States, generally the additional costs associated with nonlinear forecasts outweigh the benefits for forecasts only a few months into the future.
Journal: Applied Economics
Pages: 2259-2277
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005814
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005814
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Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2259-2277
Template-Type: ReDIF-Article 1.0
Author-Name: Aniruddha Mitra
Author-X-Name-First: Aniruddha
Author-X-Name-Last: Mitra
Author-Name: James T. Bang
Author-X-Name-First: James T.
Author-X-Name-Last: Bang
Author-Name: Arnab Biswas
Author-X-Name-First: Arnab
Author-X-Name-Last: Biswas
Title: Media freedom and gender equality: a cross-national instrumental variable quantile analysis
Abstract:
We investigate the impact of media freedom on gender equality in education for a sample of 63 countries taken over the period 1995–2004. Our analysis is motivated by the idea that the impact of media freedom on gender equality may differ over the conditional distribution of the response variable. Using instrumental variable quantile regression to control for endogeneity in per capita income, we find that greater freedom of the media improves gender equality only in the 0.25 and 0.50 quantiles of the conditional distribution. Countries with the greatest disparities in gender outcomes experience no significant impact of media freedom.
Journal: Applied Economics
Pages: 2278-2292
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005822
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005822
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Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2278-2292
Template-Type: ReDIF-Article 1.0
Author-Name: Gow-Cheng Huang
Author-X-Name-First: Gow-Cheng
Author-X-Name-Last: Huang
Author-Name: Kartono Liano
Author-X-Name-First: Kartono
Author-X-Name-Last: Liano
Author-Name: Ming-Shiun Pan
Author-X-Name-First: Ming-Shiun
Author-X-Name-Last: Pan
Title: Investor opinion divergence and post-repurchase announcement stock price drift
Abstract:
This study examines whether investor opinion divergence is a significant determinant of post-repurchase abnormal returns. We examine the effect using abnormal trading turnover (ATO) ratio as a proxy for investor opinion divergence. While the OLS regression results show that investor opinion divergence is not related to post-repurchase performance, the quantile regression results show that the effect of investor opinion divergence on post-repurchase performance is not homogeneous across various quantile levels of post-repurchase performance. We find a positive relation between ATO ratio and post-repurchase performance for firms with lower-to-middle performance groups. For firms with middle-to-higher post-repurchase performance, pre-repurchase stock undervaluation is a key determinant of the post-repurchase performance.
Journal: Applied Economics
Pages: 2293-2306
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005823
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005823
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Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2293-2306
Template-Type: ReDIF-Article 1.0
Author-Name: Satoshi Shimizutani
Author-X-Name-First: Satoshi
Author-X-Name-Last: Shimizutani
Author-Name: Hiroyuki Yamada
Author-X-Name-First: Hiroyuki
Author-X-Name-Last: Yamada
Author-Name: Haruko Noguchi
Author-X-Name-First: Haruko
Author-X-Name-Last: Noguchi
Author-Name: Yuichiro Masuda
Author-X-Name-First: Yuichiro
Author-X-Name-Last: Masuda
Author-Name: Masafumi Kuzuya
Author-X-Name-First: Masafumi
Author-X-Name-Last: Kuzuya
Title: Exploring the causal relationship between hospital length of stay and re-hospitalization among Japanese AMI patients
Abstract:
We explore the causal relationship between hospital length of stay (LOS) and re-hospitalization for Acute Myocardial Infarction (AMI) patients in Japan, where the average LOS is the longest among OECD countries. Using chart-based data, we address the endogeneity between LOS and re-hospitalization probability by using an exogenous variation based on Rokuyo (the six basic labels allocated to each day), which is found to be irrelevant to admission day but relevant to discharge day. While we do find a significant and positive association between LOS and re-hospitalization probability in the OLS estimation, we do not find a significant relationship once LOS is instrumented by Rokuyo in various instrumental variable estimations. This implies that additional stay that was induced owing to patient’s choice of preferred Rokuyo at discharge has no effect on re-hospitalization probability.
Journal: Applied Economics
Pages: 2307-2325
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005824
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005824
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Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2307-2325
Template-Type: ReDIF-Article 1.0
Author-Name: Louis de Grange
Author-X-Name-First: Louis
Author-X-Name-Last: de Grange
Author-Name: Felipe González
Author-X-Name-First: Felipe
Author-X-Name-Last: González
Author-Name: Rodrigo Troncoso
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Troncoso
Title: Estimates of price elasticity of demand for urban freeway use with high-frequency control variables: the case of Santiago, Chile
Abstract:
Estimates are presented of toll and fuel price elasticities of demand for urban freeway use in Santiago, Chile. High-frequency toll and vehicle data were collected from four urban freeways for different route segments and times of day. Estimation was performed using log-linear regression models whose explanatory variables were tolls, fuel prices, city traffic levels and sets of dichotomous variables to control for daily, weekly and monthly seasonality. City traffic is a high frequency control of the activity level of the city. The elasticities to changes in tolls and fuel were all low in absolute value. The toll elasticities were below 0.05 for two freeways and 0.16 for the third, while for the fourth, which had more alternative routes, it was 0.47. The fuel price elasticities were also heterogeneous, with values of approximately 0.45 for two freeways and 0.21 for the third whereas for the fourth, which had the fewest alternatives, it was 0.07.
Journal: Applied Economics
Pages: 2326-2337
Issue: 22
Volume: 47
Year: 2015
Month: 5
X-DOI: 10.1080/00036846.2015.1005825
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1005825
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Handle: RePEc:taf:applec:v:47:y:2015:i:22:p:2326-2337
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: 318-318
Issue: 3
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.982953
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982953
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Handle: RePEc:taf:applec:v:47:y:2015:i:3:p:318-318
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: i-i
Issue: 38
Volume: 47
Year: 2015
Month: 8
X-DOI: 10.1080/00036846.2015.1040259
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1040259
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Handle: RePEc:taf:applec:v:47:y:2015:i:38:p:i-i
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: 408-413
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.987479
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987479
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:408-413
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: ii-ii
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.984483
File-URL: http://hdl.handle.net/10.1080/00036846.2014.984483
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:ii-ii
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Applied Economics
Pages: iii-iii
Issue: 4
Volume: 47
Year: 2015
Month: 1
X-DOI: 10.1080/00036846.2014.987525
File-URL: http://hdl.handle.net/10.1080/00036846.2014.987525
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Handle: RePEc:taf:applec:v:47:y:2015:i:4:p:iii-iii
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Corrigendum
Journal: Applied Economics
Pages: 1-1
Issue: 50
Volume: 47
Year: 2015
Month: 10
X-DOI: 10.1080/00036846.2015.1061233
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1061233
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Handle: RePEc:taf:applec:v:47:y:2015:i:50:p:1-1
Template-Type: ReDIF-Article 1.0
Author-Name: M. M. Fonseka
Author-X-Name-First: M. M.
Author-X-Name-Last: Fonseka
Author-Name: Xing Yang
Author-X-Name-First: Xing
Author-X-Name-Last: Yang
Author-Name: Gao-Liang Tian
Author-X-Name-First: Gao-Liang
Author-X-Name-Last: Tian
Author-Name: Sisira R. N. Colombage
Author-X-Name-First: Sisira R. N.
Author-X-Name-Last: Colombage
Title: Political connections, ownership structure and private-equity placement decision: evidence from Chinese listed firms
Abstract:
In contrast with many other countries, Chinese listed firms must obtain approval to make private-equity placements (PEPs) from the Chinese Security Regulatory Commission (CSRC), a state bureau that regulates capital market financing. We analyse the role of political connection (PC) and ownership structures when accessing private equity (PE) market, while investigating the mechanisms through which political ties operate within the regulatory process of PEPs. The findings suggest that PCs do not contribute to the firm’s decision to apply for PEPs, but firms with state-ownership demonstrate a higher propensity to apply for PEPs. PC and state-ownership appear to help firms to obtain approval from the CSRC, and these firms are treated more favourably than their rivals without such connections. Politically connected firms spend less time in managing bureaucracy, but PC and state-ownership negatively affect proceeds from the PE market in China. Firms with politically connected directors with professional business backgrounds tend to spend less time managing the CSRC, and these professionals positively affect proceeds from the PE market in China. This study provides important insights for policy-makers, investors, PE issuing firms and security market regulators.
Journal: Applied Economics
Pages: 5648-5666
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054073
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054073
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Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5648-5666
Template-Type: ReDIF-Article 1.0
Author-Name: Satis Devkota
Author-X-Name-First: Satis
Author-X-Name-Last: Devkota
Author-Name: Mukti Upadhyay
Author-X-Name-First: Mukti
Author-X-Name-Last: Upadhyay
Title: How do income and education affect health inequality: evidence from four developing countries
Abstract:
Using household survey data from four countries ‒ Albania, Nepal, Tajikistan and Tanzania ‒ this article calculates income-related inequality in health care utilization. We measure health disparity separately for generally and chronically ill individuals by constructing two models: one for the probability of a visit to a physician and another for the number of visits. Following model-based measurements, we decompose inequality into two major parts: one accounted for by identity-related factors and another by socioeconomic and other factors such as education, geography and distance to a clinic. We propose a new method to quantify the effect of changes in income and education on health disparity. One of our important findings suggests that health disparity is pro-rich in all our sample countries. The pro-rich disparity is prevalent among generally ill as well as chronically ill patients, in both visit probability and visit frequency models. Health inequality seems primarily driven by income differences followed by nonidentity factors. Further, the principle of equal treatment for equal need is not fulfilled in any of our countries. Among policy implications, increasing average income and education in a way that also reduces disparity in income and education, respectively, will substantially shrink inequality in health care utilization.
Journal: Applied Economics
Pages: 5583-5599
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054069
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054069
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Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5583-5599
Template-Type: ReDIF-Article 1.0
Author-Name: Yanjie Zhu
Author-X-Name-First: Yanjie
Author-X-Name-Last: Zhu
Author-Name: Xiaojing Ren
Author-X-Name-First: Xiaojing
Author-X-Name-Last: Ren
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Author-Name: Hengyun Ma
Author-X-Name-First: Hengyun
Author-X-Name-Last: Ma
Title: Why is there controversy regarding China’s staple grain food market integration? Evidence and implication from price convergent club analysis
Abstract:
There remains ongoing controversy regarding the degree to which Chinese food markets are integrated. Some economists conclude that China’s grain economy is well integrated, while others argue that China’s gradual reforms have led to fragmented domestic markets while others conclude that previous studies have produced mixed results. To reconcile the debate, this article models and analyses the behaviour of China’s food grain retail markets by testing for the existence of the convergent price clustering clubs using appropriate econometric methods and price data over 1997–2010. The article finds evidence as to why the controversy remains by identifying a number of small divergent price clustering clubs where it is hard to conclude that China’s food grain markets are fully integrated. However, given that large convergent clustering clubs were also identified, it can be concluded that the degree to which Chinese grain food retail markets are integrated is ‘high’. This finding is important for those who plan to investigate the economic behaviour of grain production under the assumption of a pure, fully integrated, food market economy in China.
Journal: Applied Economics
Pages: 5634-5647
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054072
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054072
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Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5634-5647
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Title: Renewable energy consumption and unemployment: evidence from a sample of 80 countries and nonlinear estimates
Abstract:
This article contributes to the discussion on the dynamic nexus of renewable energy consumption and unemployment by incorporating nonlinear cointegration and causality analysis. Using a sample of 80 countries spanning the period 1990–2013 and the advanced generation of unit root, cointegration and nonlinear Granger causality methodological approaches in panel data, we obtain mixed results about the impact of renewable energy consumption on unemployment. Although the total findings document a positive impact of renewable energy consumption on unemployment, disaggregated data across specific regions, such as Asia and Latin America, highlight the favourable effect on unemployment, implying that the effect of renewable energy consumption on jobs creation depends on the cost of adopting renewable energy technologies and energy efficiencies that seem to vary across the regions under investigation.
Journal: Applied Economics
Pages: 5614-5633
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054071
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054071
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Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5614-5633
Template-Type: ReDIF-Article 1.0
Author-Name: Akhand Akhtar Hossain
Author-X-Name-First: Akhand Akhtar
Author-X-Name-Last: Hossain
Title: Inflation volatility, economic growth and monetary policy in Bangladesh
Abstract:
This article provides an overview of the trends and movements of CPI-inflation in Bangladesh since the early 1950s and examines the key issues in rule-based monetary policy for price stability, implying low and stable inflation, in this country. Under a fixed exchange rate system, inflation in Bangladesh was moderately high and volatile during the 1950s and 1960s. Since the country’s independence from Pakistan in 1971, inflation in Bangladesh has remained moderately high on average and highly volatile and persistent under a fixed-pegged exchange rate system or under a managed floating system since 2003. Using data from the early 1970s or earlier depending on data availability, the article undertakes both Granger-causality and the structural vector autoregression (SVAR) analysis with two models. The first model is comprised of such variables as inflation, the real interest rate, the real exchange rate and output growth, and the second model is comprised of the volatilities of money growth, real output growth and inflation. Then, based on the empirical findings, the article concludes that a rule-based monetary policy, namely monetary targeting or inflation targeting, remains appropriate for Bangladesh provided that it adopts a more flexible, if not freely floating, exchange rate system. The article suggests that the use of monetary policy to achieve multiple objectives under a fixed-pegged exchange rate system creates a time-inconsistency problem, reduces monetary policy credibility and makes it (monetary policy) ineffective in lowering inflation and its volatility. Low credibility of monetary policy in particular raises inflation persistence. Within the present monetary-policy framework in Bangladesh, the article illustrates how the fixed-pegged exchange rate system has generated money growth volatility in the presence of large-scale inflows of overseas workers’ remittances and readymade garments export earnings. This does not seem to be a concern of the central bank of Bangladesh (Bangladesh Bank); rather, it (Bangladesh Bank) pursues monetary-base targeting to keep inflation low and stable after considering economic growth. The consequent diminishing credibility of monetary policy has kept inflation volatile and persistent, which has adversely affected economic growth.
Journal: Applied Economics
Pages: 5667-5688
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054074
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054074
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Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5667-5688
Template-Type: ReDIF-Article 1.0
Author-Name: James E. Payne
Author-X-Name-First: James E.
Author-X-Name-Last: Payne
Author-Name: Stephanie Anderson
Author-X-Name-First: Stephanie
Author-X-Name-Last: Anderson
Author-Name: Junsoo Lee
Author-X-Name-First: Junsoo
Author-X-Name-Last: Lee
Author-Name: Myeong Hyeon Cho
Author-X-Name-First: Myeong Hyeon
Author-X-Name-Last: Cho
Title: Do per capita health care expenditures converge among OECD countries? Evidence from unit root tests with level and trend-shifts
Abstract:
This study examines the stochastic conditional convergence of per capita health care expenditures (PCHCE) among 19 OECD countries over the period 1972–2008. Specifically, newly developed LM and RALS-LM unit root tests with allowance for two endogenously determined structural breaks are employed. The results indicate support for PCHCE convergence among most OECD countries. The results are stronger in more general tests that control for two breaks and nonnormal errors. Panel unit root tests provide additional support for the stochastic convergence of PCHCE.
Journal: Applied Economics
Pages: 5600-5613
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054070
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054070
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Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5600-5613
Template-Type: ReDIF-Article 1.0
Author-Name: Jinghua Lei
Author-X-Name-First: Jinghua
Author-X-Name-Last: Lei
Author-Name: Kai Liu
Author-X-Name-First: Kai
Author-X-Name-Last: Liu
Title: US money supply and global business cycles: 1979–2009
Abstract:
This article investigates the effects of the US money supply shock on global business cycles by employing a global vector autoregressive model containing 26 economies over the period from 1979Q2 to 2009Q4. The US money supply is incorporated as an endogenous variable for the US and a global factor for other economies. When a positive US money supply shock hits the global economy, developed economies (such as the US, Euro area and the UK) will have neither real output decline nor inflation pressure, while China and some other developing countries are going to have a significant decline of real GDP. The international spillover of the liquidity effect exists. The global effects of quantitative easing are discussed as well.
Journal: Applied Economics
Pages: 5689-5705
Issue: 52
Volume: 47
Year: 2015
Month: 11
X-DOI: 10.1080/00036846.2015.1054075
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1054075
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Handle: RePEc:taf:applec:v:47:y:2015:i:52:p:5689-5705
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Applied Economics
Pages: ebi-ebi
Issue: 60
Volume: 47
Year: 2015
Month: 12
X-DOI: 10.1080/00036846.2015.1109950
File-URL: http://hdl.handle.net/10.1080/00036846.2015.1109950
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Handle: RePEc:taf:applec:v:47:y:2015:i:60:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Olaolu Richard Olayeni
Author-X-Name-First: Olaolu Richard
Author-X-Name-Last: Olayeni
Title: Renewable and nonrenewable energy production and economic growth in sub-Saharan Africa: a hidden cointegration analysis
Abstract:
The objective of this article is to investigate the hypothesis of asymmetric effects between economic growth and renewable and nonrenewable energy production. To this end, both the linear cointegration and the hidden cointegration methodology are employed, with the latter allowing a straightforward delimitation of the data in an economically sensible way. We test for the presence of hidden cointegration across 12 sub-Saharan African countries spanning the period 1971–2011. The empirical results confirm the growth hypothesis for a subset of countries, suggesting that their growth could be adversely affected by conservation policies, while for a second subgroup of countries they confirm the conservation hypothesis, indicating that conservation policies could enhance the growth process in these countries. The differentiation of the results could be captured entirely by the linear approach, indicating that the lack of cointegration between renewable energy production and economic growth found in previous studies may be due to failures to properly delimit the nonlinearity property in the data.
Journal: Applied Economics
Pages: 861-882
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982855
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Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:861-882
Template-Type: ReDIF-Article 1.0
Author-Name: Johanna Catherine Maclean
Author-X-Name-First: Johanna Catherine
Author-X-Name-Last: Maclean
Author-Name: Douglas Webber
Author-X-Name-First: Douglas
Author-X-Name-Last: Webber
Author-Name: Michael T. French
Author-X-Name-First: Michael T.
Author-X-Name-Last: French
Title: Workplace problems, mental health and substance use
Abstract:
Little is known about how workplace problems may influence diagnosable mental health and substance use (MHSU) disorders. We examine the associations between three common workplace problems (experiencing problems with co-workers, job changes and perceived financial strain) and three MHSU disorders (mood, anxiety and substance abuse/dependence). The analysis utilizes longitudinal data on a sample of working-age adults from the National Epidemiological Survey on Alcohol and Related Conditions. These data are well suited for our research objective as the survey was specifically designed to study MHSU disorders. Results show that experiencing these workplace problems is associated with an increased risk for mental health disorders, but not substance use disorders. Importantly, various robustness checks and sensitivity analyses demonstrate that our findings cannot be not fully explained by omitted variables, reverse causality or sample attrition.
Journal: Applied Economics
Pages: 883-905
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982856
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982856
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Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:883-905
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Pestana Barros
Author-X-Name-First: Carlos Pestana
Author-X-Name-Last: Barros
Author-Name: Peter Wanke
Author-X-Name-First: Peter
Author-X-Name-Last: Wanke
Author-Name: Otávio Figueiredo
Author-X-Name-First: Otávio
Author-X-Name-Last: Figueiredo
Title: The Brazilian Soccer Championship: an efficiency analysis
Abstract:
This article analyses the top Brazilian football league from 2003 to 2011 by estimating a cost function and using a stochastic frontier model. Among the covariates, the number of fans per club and club remoteness is taken into account. The Brazilian clubs are then ranked according to their technical efficiency during the 2000–2011 period. Based on the results, the policy implication is presented, and the economic implications arising from the study are also considered.
Journal: Applied Economics
Pages: 906-915
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982857
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982857
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Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:906-915
Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Sérgio Vasconcelos
Author-X-Name-First: Paulo Sérgio
Author-X-Name-Last: Vasconcelos
Author-Name: Lucio Guido Tapia Carpio
Author-X-Name-First: Lucio Guido Tapia
Author-X-Name-Last: Carpio
Title: Estimating the economic costs of electricity deficit using input–output analysis: the case of Brazil
Abstract:
The objective of this article is to present a methodology to estimate the marginal cost of electric energy deficit in the long-term using input–output (I–O) analysis. We obtain a deficit marginal cost (DMC) curve that is not limited to a small number of levels, such as the curve used currently in Brazil, which is limited to four levels. The marginal cost of deficit is an important exogenous parameter used in the model’s chain to calculate the operation’s marginal cost and short-term market pricing. The electric energy deficit is a temporary lack of continuity in meeting demand, which is usually predictable and involves prior notice to the consumer. The cause of this deficit may be a lack of investment and/or low water inflows that impact the production of hydroelectric power plants. In this study, the marginal cost of the deficit is obtained from restrictions on the provision of electricity for productive sectors and by calculating the corresponding impact on the gross domestic product. The proposed methodology can be used with data from the I–O matrix of any country to estimate its marginal cost of electric energy deficit.
Journal: Applied Economics
Pages: 916-927
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.982858
File-URL: http://hdl.handle.net/10.1080/00036846.2014.982858
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Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:916-927
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Norman
Author-X-Name-First: Stephen
Author-X-Name-Last: Norman
Author-Name: Douglas Wills
Author-X-Name-First: Douglas
Author-X-Name-Last: Wills
Title: Nonlinear integration of London and Amsterdam stock markets in the 1700s
Abstract:
The financial markets in London and Amsterdam were some of the first to develop. Using threshold autoregressive models, we use data on two commonly traded stocks in these cities to show that the joint behaviour of the prices is consistent with the theory of arbitrage in the presence of transportation costs. The results suggest that prices converged more quickly as the price difference between the two markets increased. We also show that the threshold estimates are consistent between assets and across time. These results provide some of the earliest evidence of nonlinear mean reversion in asset prices in geographically separate financial markets.
Journal: Applied Economics
Pages: 928-939
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985369
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985369
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Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:928-939
Template-Type: ReDIF-Article 1.0
Author-Name: Jin Suk Park
Author-X-Name-First: Jin Suk
Author-X-Name-Last: Park
Title: The duration analysis of structural breaks: is stability destabilizing?
Abstract:
This article investigates how the duration of a regime (i.e., the length of stability) affects the likelihood of a permanent structural break by devising the duration dependence in structural break method, which combines a structural break test and a duration dependence test. First, the locations of structural breaks are identified by Bai and Perron’s (1998) method. Then, it is estimated how a hazard rate changes in duration between structural breaks by parametric duration analysis using the Weibull and the log-logistic hazard functions.This study reveals the evidence of positive duration dependence, that is, stability is destabilizing, in 13 out of 27 international stock indices and the pooled data. In other words, as one regime continues over time with unchanged parameter values, a new structural break is more likely to occur. This method discloses a lower degree of duration dependence than the duration-dependence Markov-switching model (Durland and McCurdy, 1994) that considers temporary switches between a limited number of regimes. Also, some new patterns are emerged, e.g., more predominant positive duration dependence in bear markets, the secondary stock exchanges of a country and developing countries.
Journal: Applied Economics
Pages: 940-954
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985370
File-URL: http://hdl.handle.net/10.1080/00036846.2014.985370
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Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:940-954
Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang
Author-X-Name-First: Hong
Author-X-Name-Last: Zhang
Author-Name: Qingcheng Zeng
Author-X-Name-First: Qingcheng
Author-X-Name-Last: Zeng
Title: A study of the relationships between the time charter and spot freight rates
Abstract:
A time charter contract is a shipping contract that allows for freight rate risk avoidance and hedging. Defining the relationship between time charter and spot freight rates will illuminate the fluctuation mechanism of the spot freight market. In this article, three types of dry bulk ships – Capsize, Panamax and Supramax – are chosen to investigate the relationship between time charter and spot freight rates and to analyse the price discovery function of time charter contracts. A vector error correction model is developed, and an impulse response function is used to analyse the influence of time charter rates on spot freight rates. Empirical studies indicate that there are two-way lead–lag relationships between the time charter and spot freight rates and that a time charter contract has a price discovery function. Smaller ship sizes and longer durations lead to a stronger price discovery function.
Journal: Applied Economics
Pages: 955-965
Issue: 9
Volume: 47
Year: 2015
Month: 2
X-DOI: 10.1080/00036846.2014.985371
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Handle: RePEc:taf:applec:v:47:y:2015:i:9:p:955-965
Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Lin
Author-X-Name-First: Qiang
Author-X-Name-Last: Lin
Author-Name: Yue Wang
Author-X-Name-First: Yue
Author-X-Name-Last: Wang
Title: Working capital management, the market environment and corporate performance: evidence from China
Abstract:
The purpose of this paper is to study the impact of working capital management (WCM) and the market environment (ME) on corporate performance in the context of China’s economy with firms classified by size. All A-share listed nonfinancial enterprises from 2008 to 2019 are included in the sample, and a two-way fixed effects regression model is applied. WCM is measured by the cash conversion cycle (CCC), and profitability is measured by ROA. ME is measured by the government-market relationship (GF) and the development of the non-state-owned economy (Non-SE). First, the research finds that CCC is negatively correlated with corporate performance and that firm size has a regulatory impact on this relationship. Second, the positive relationship between Non-SE and profitability is significant for large firms but not for SMEs. Third, GF is negatively correlated with profitability for enterprises of all sizes, which is contrary to the expected results.This paper is the first to combine the three factors of firm size, WCM and ME to discuss their impact on corporate performance. The results offer important implications for enterprise managers to improve WCM and to seize opportunities in the development of non-state-owned economy.
Journal: Applied Economics
Pages: 4505-4516
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904120
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904120
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Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4505-4516
Template-Type: ReDIF-Article 1.0
Author-Name: Matěj Bělín
Author-X-Name-First: Matěj
Author-X-Name-Last: Bělín
Author-Name: Jan Hanousek
Author-X-Name-First: Jan
Author-X-Name-Last: Hanousek
Title: SFA robustness to violated distributional assumptions: theory, simulations and empirical evidence
Abstract:
The well-known biases caused by taking the logarithm of a heteroskedastic dependent variable are a potential threat in stochastic frontier analyses (SFA), which are often estimated in log-linear form. This paper shows that while these biases can indeed be substantial, they do not affect the identification of best and worst performing firms, which is often more important than parameters of the frontier function. The efficiency ranks remain correctly identified except for special cases which are easily detectable. Furthermore, we document that the popular normal-truncated-normal SFA model with time-invariant efficiency shows a notable robustness to the mis-specification of the distribution of efficiency terms. The reason for this property is the model’s similarity to Gaussian pseudo-maximum likelihood estimator. Simulations are used to illustrate these properties and to show that the recovery of the correct productivity ranks is feasible even with very short panels. Empirical exercises show that using short panels is practicable in real datasets.
Journal: Applied Economics
Pages: 4544-4559
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904124
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904124
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Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4544-4559
Template-Type: ReDIF-Article 1.0
Author-Name: Gamze Ozturk Danisman
Author-X-Name-First: Gamze Ozturk
Author-X-Name-Last: Danisman
Author-Name: Ender Demir
Author-X-Name-First: Ender
Author-X-Name-Last: Demir
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Title: FINANCIAL RESILIENCE TO THE COVID-19 PANDEMIC: THE ROLE OF BANKING MARKET STRUCTURE
Abstract:
This article examines whether differences in banking market structures across countries influence the local stock market resilience to the COVID-19 pandemic. Using a sample of 66 countries for the period January 2020 to July 2020, our findings demonstrate that countries with more concentrated banking systems, with a higher presence of foreign banks, and a higher share of Islamic banks are more resilient to the pandemic. Considering the banking regulatory differences between countries, we observe that equity markets of countries with stricter regulatory requirements on capital and liquidity are more resilient to the COVID-19. Finally, regarding banking sector performance indicators, our findings show that while stock reactions of countries with more stable banking systems are more resilient to the pandemic; countries with more credit to deposit ratio, overhead costs, high provisions and nonperforming loans are more vulnerable. Our findings provide important implications for policymakers, regulatory bodies and investors.
Journal: Applied Economics
Pages: 4481-4504
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904118
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904118
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Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4481-4504
Template-Type: ReDIF-Article 1.0
Author-Name: Xuehui Zhang
Author-X-Name-First: Xuehui
Author-X-Name-Last: Zhang
Author-Name: Jianhua Tan
Author-X-Name-First: Jianhua
Author-X-Name-Last: Tan
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: Air pollution and initial public offering underpricing
Abstract:
We examine the impact of air pollution in a city in which an initial public offering (IPO) firm is located to its IPO underpricing. Our findings suggest that when air pollution is severe, the IPO underpricing is high. The results are robust to alternative metrics of air pollution and IPO underpricing, an instrumental variable approach, and a difference-in-differences research design. Additional analyses suggest that (1) seasoned firms located in severe air pollution cities have high crash risk, (2) seasoned firms located in severe air pollution cities have tightened financial constraints and makes more environmental investment, (3) IPO firms in severe air pollution cities have less analyst and institutional investor site visits. These findings support the underlying logic that air pollution worsens a firm’s information environment and financial constraint. We also find that the effect is more salient for IPOs with low analyst following, low institutional investor site visits, and high earnings management, corroborating the information asymmetry explanation of underpricing. Therefore, addressing environmental issues is important to public health as well as to capital formation.
Journal: Applied Economics
Pages: 4582-4595
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904123
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904123
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Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4582-4595
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Fujiki
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Fujiki
Title: Crypto asset ownership, financial literacy, and investment experience
Abstract:
This study compares the key characteristics of Japanese crypto asset owners with those of nonowners. After confirming that average crypto asset owners are likely to be young and male as compared to average crypto asset nonowners, we find that average crypto asset owners tend to have a higher level of financial literacy and are more likely to use cashless payment methods and hoard cash, as compared to average crypto asset nonowners. This study also determined novel heterogeneities among crypto asset owners according to their investment experience with conventional risky financial assets in terms of cash hoarding and financial literacy. Crypto asset owners without investment experience with conventional risky financial assets do not hoard cash and their level of financial literacy is lower than that of both crypto asset owners and nonowners with investment experience with conventional risky financial assets. The results suggest that financial regulators should not treat crypto asset owners as a homogenous group of financially literate investors who are inherently good at internet transactions.
Journal: Applied Economics
Pages: 4560-4581
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904125
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904125
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Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4560-4581
Template-Type: ReDIF-Article 1.0
Author-Name: Rosaria Rita Canale
Author-X-Name-First: Rosaria Rita
Author-X-Name-Last: Canale
Author-Name: Giorgio Liotti
Author-X-Name-First: Giorgio
Author-X-Name-Last: Liotti
Title: Controversial effects of public debt on wage share: the case of the eurozone
Abstract:
The aim of the paper is to estimate the effects of increasing debt burden on the wage share of national income in the eurozone from 1999 to 2019 in an attempt to verify, through a dynamic panel data cointegrating technique, whether an increase in debt implies a redistribution of resources from workers to non-wage incomes. To deepen this analysis, the empirical investigation also distinguishes between change in primary public balance and interest payments to evaluate separately the effects of the two components of public debt on wages. The outcomes are consistent with a negative relationship between public debt as a whole and the wage share. However, when accounting for the two debt components, opposite results are registered as the debt service is negatively connected, while change in primary public deficit is positively connected with the wage share of national GDP. These results allow reflecting on the interaction between the monetary policy strategy and the national fiscal policies in the eurozone.
Journal: Applied Economics
Pages: 4533-4543
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904122
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904122
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Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4533-4543
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Hürtgen
Author-X-Name-First: Patrick
Author-X-Name-Last: Hürtgen
Title: Fiscal space in the COVID-19 pandemic
Abstract:
The ‘Great Lockdown’ in response to the COVID-19 pandemic has led to a severe world-wide economic crisis. In the euro area countries sovereign debt-to-GDP ratios are on the rise and reductions in expected fiscal surpluses raise sustainability concerns amongst investors. This paper provides novel estimates of non-linear state-dependent fiscal limits for the five largest euro area countries. Within the DSGE model I build a COVID-19 scenario calibrated to match the decline in real GDP growth forecasts between February and April 2020 and the fiscal stimulus packages announced until the end of March 2020. On average, fiscal space contracts by 58.4% of national GDP.
Journal: Applied Economics
Pages: 4517-4532
Issue: 39
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904121
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904121
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Handle: RePEc:taf:applec:v:53:y:2021:i:39:p:4517-4532
Template-Type: ReDIF-Article 1.0
Author-Name: Z M Dai
Author-X-Name-First: Z M
Author-X-Name-Last: Dai
Author-Name: Xiuheng Shen
Author-X-Name-First: Xiuheng
Author-X-Name-Last: Shen
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Title: Technological innovation on economic growth from the perspective of investment-oriented environmental regulations: considering the threshold effect of China human capital
Abstract:
An investment-oriented environment and its regulations are the inevitable background when major economies face investment-driven economic development. While technological innovation helps form a compensatory or cost-based development path for economic growth, human capital plays a regulatory role in this development path as the largest dynamic and unstable variable. This research thus conducts a regulatory framework with an empirical study of the threshold effect from different levels of human capital investment on technological innovation and economic growth in four industries. The main conclusions are as follows: 1)We divide technological innovation caused by investment-based environmental regulation into active technological innovation.Passive technological innovation and subsequently identify the quantitative change effect of technological innovation on economic growth under investment-based environmental regulation. 2)Taking the human capital of different industries as threshold variables, we examine the threshold effect of investment-based environmental regulations and confirm the threshold value of different industries. 3)Through lagging second-order stability analysis, we basically solve the endogenous problem of investment-based environmental regulations, in which the relevant estimation conclusions appear more robust. Lastly, this research offers corresponding policy recommendations.
Journal: Applied Economics
Pages: 4632-4645
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904128
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904128
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Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4632-4645
Template-Type: ReDIF-Article 1.0
Author-Name: Taylan Mavruk
Author-X-Name-First: Taylan
Author-X-Name-Last: Mavruk
Author-Name: Stefan Sjögren
Author-X-Name-First: Stefan
Author-X-Name-Last: Sjögren
Title: Capital structure and monitoring by local owners
Abstract:
We examine how owners’ portfolio diversification influences their firms’ financial decision-making and performance. We find that firms with high local ownership use less leverage, but firms with local ownership by locally biased owners use higher debt levels relative to firms with diversified local owners. Firms with high local ownership in urban regions use higher debt levels. In rural regions, firms with high locally biased ownership use higher debt levels relative to firms with diversified local ownership. Finally, although we find weak evidence that firms with high local ownership underperform the market, the underperformance is smaller in firms with high locally biased ownership. Thus, locally biased owners, not local owners with diversified portfolios, have an informed monitoring role in firms, and this effect seems to mitigate negative liquidity consequences. The separation of local owners into those with locally biased and those with diversified portfolios determines when and how local ownership can be used as a good proxy for informed investors.
Journal: Applied Economics
Pages: 4614-4631
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904127
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904127
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Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4614-4631
Template-Type: ReDIF-Article 1.0
Author-Name: Hao Shen
Author-X-Name-First: Hao
Author-X-Name-Last: Shen
Author-Name: Jiang Xin
Author-X-Name-First: Jiang
Author-X-Name-Last: Xin
Author-Name: Xiaoyong Dai
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Dai
Author-Name: Chuan Liu
Author-X-Name-First: Chuan
Author-X-Name-Last: Liu
Title: The contingent value of managerial ties for new ventures during China’s anti-corruption campaign
Abstract:
The tie-based non-market strategy has been widely adopted by new ventures to gain a competitive advantage in China. However, the recent anti-corruption campaign may have profound influences on business practices, particularly on the utilization or leveraging of managerial ties for improving firm performance. This study explored the critically important but fairly underexplored research question of whether managerial ties continue to create value for new ventures under China’s anti-corruption campaign. Based on a sample of Chinese listed firms consisting of new ventures, this study found that business ties and political ties have produced divergent effects on the performance of new ventures since China’s anti-corruption campaign took effect. Moreover, a wider coverage or scope of anti-corruption increased the benefits of business ties and political ties, while a higher intensity of anti-corruption facilitated the role of anti-corruption scope on increasing the benefits of managerial ties for better performance of new ventures.
Journal: Applied Economics
Pages: 4664-4679
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1907283
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907283
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Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4664-4679
Template-Type: ReDIF-Article 1.0
Author-Name: Mathieu Bunel
Author-X-Name-First: Mathieu
Author-X-Name-Last: Bunel
Author-Name: Elisabeth Tovar
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Tovar
Title: Profit, morality and discrimination
Abstract:
Using an original vignette survey, we study the normative acceptability of the trade-off between immoral profit (discrimination) and costly morality (non-discrimination). We test the causal influence of three factors: i) the origin of discrimination, ii) the steepness of the morality/profit trade-off and iii) anti-discriminatory moral injunctions. Contrasting with past experimental and attitudinal studies, we find that a significant minority of respondents believe that labour market discrimination is acceptable when morality results in profit loss. We also find that the three tested factors have significant effects on normative opinions. Respondents are more likely to choose profit over morality when discrimination is taste-based than when it is caused by imperfect information. Discrimination’s acceptability rises with the cost of non discrimination. Anti-discriminatory moral injunctions sharply reduce the acceptability of profitable discrimination.
Journal: Applied Economics
Pages: 4692-4712
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1907285
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907285
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Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4692-4712
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Author-Name: Jin Chen
Author-X-Name-First: Jin
Author-X-Name-Last: Chen
Author-Name: Shuai Lu
Author-X-Name-First: Shuai
Author-X-Name-Last: Lu
Author-Name: Ning Chen
Author-X-Name-First: Ning
Author-X-Name-Last: Chen
Title: Variable investment strategies for Chinese listed military enterprises: an empirical study based on double-market network analysis
Abstract:
As one of the industries that have been developing fast in the last few decades, it is found that the Chinese military industry presents a rapid growth in production market, while an opposite one in stock market. It is worth investing in the Chinese listed military enterprises which are stepping at a prosperous stage. However, how to reasonably select and invest them based on the ‘poor’ stock performance? To address this issue, this paper first proposes the multiple double-market networks and further derives the sealed and the open double-market network models. The disturbance analysis is carried out taking the military expenditure as the exogenous disturbance. Furthermore, the whole military industry and the individual listed military enterprises in China are empirically investigated. After that, the efficient, the inefficient, the relatively stable and the disturbed military enterprises can be recognized based on their network efficiency values. Moreover, a time-lag effect is found. A sharp increment of military expenditure may lead to the improvement of overall performance in the next year. Based on this, we give the variable investment strategies for investors to select the network efficient listed military enterprises and help them cope with the sharp changes of military expenditure.
Journal: Applied Economics
Pages: 4646-4663
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1907282
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907282
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Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4646-4663
Template-Type: ReDIF-Article 1.0
Author-Name: Semih Emre Çekin
Author-X-Name-First: Semih Emre
Author-X-Name-Last: Çekin
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Eric Olson
Author-X-Name-First: Eric
Author-X-Name-Last: Olson
Title: The Taylor curve: international evidence
Abstract:
We use the Taylor curve to gauge deviations of monetary policy from an efficiency locus for the United Kingdom (UK) and the four largest economies of the Eurozone (Germany, France, Italy, Spain) for the period 2000–2018. For this purpose, we use shadow interest rates, which is a common metric for both conventional and unconventional monetary policies, and the newly proposed Hamilton-filter to measure output gap, which improves upon the drawbacks of the traditionally used Hodrick–Prescott filter. Our findings suggest that deviations in the UK mostly occurred amid the global financial crisis and the post-Brexit period, whereas Eurozone members experienced more volatile deviations around 2001, during the global financial crisis and the Eurozone sovereign debt crisis.
Journal: Applied Economics
Pages: 4680-4691
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1907284
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907284
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Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4680-4691
Template-Type: ReDIF-Article 1.0
Author-Name: Jianda Wang
Author-X-Name-First: Jianda
Author-X-Name-Last: Wang
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: How renewable energy reduces CO2 emissions? Decoupling and decomposition analysis for 25 countries along the Belt and Road
Abstract:
To explore how renewable energy reduces carbon dioxide (CO2) emissions, this study decomposes the impacts of renewable energy on CO2 emissions by employing the Generalized Divisia Index Method (GDIM), based on panel data of 25 countries along the Belt and Road Initiative (BRI) for the period 2005–2019. Also, we explore their decoupling relationships. The results indicate that: (1) The numbers of countries with an ideal strong decoupling state reach the highest point during 2010 and 2015. (2) The growth in renewable energy scale is the key driving force responsible for promoting CO2 emissions in most countries along the BRI, while the main factor inhibiting CO2 emissions is the carbon intensity of renewable energy. (3) The carbon mitigation effect of the increase in the proportion of renewable energy is considerably higher than that of technological improvements from renewables, and it will promote the transformation of the relationship between renewable energy and carbon emissions into a more ideal strong decoupling relationship. (4) The effect of carbon efficiency on emission is not significant at this stage, but it will be much more important in the future.
Journal: Applied Economics
Pages: 4597-4613
Issue: 40
Volume: 53
Year: 2021
Month: 08
X-DOI: 10.1080/00036846.2021.1904126
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904126
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Handle: RePEc:taf:applec:v:53:y:2021:i:40:p:4597-4613
Template-Type: ReDIF-Article 1.0
Author-Name: Zeeshan Khan
Author-X-Name-First: Zeeshan
Author-X-Name-Last: Khan
Author-Name: Muntasir Murshed
Author-X-Name-First: Muntasir
Author-X-Name-Last: Murshed
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Siqun Yang
Author-X-Name-First: Siqun
Author-X-Name-Last: Yang
Title: The roles of export diversification and composite country risks in carbon emissions abatement: evidence from the signatories of the regional comprehensive economic partnership agreement
Abstract:
The ratification of the Regional Comprehensive Economic Partnership (RCEP) agreement has laid the platform for the signatory nations to boost their respective economic growth rates, and also raised environmental concerns. So far, little is known regarding the roles of export diversification and the composite risk index in the abatement of carbon dioxide (CO2) emissions for the RCEP countries. Accordingly, this study investigates the impacts of export diversification and composite risk index on CO2 emissions for the RCEP countries between 1987 and 2017. The empirical findings indicate that lowering the composite risk index, undertaking a transition to renewable energy, and enhancing environmentally-related technological innovations help reduce CO2 emissions in the long run. In contrast, export diversification is found to monotonically boost CO2 emission levels. The findings also authenticate the environmental Kuznets curve (EKC) hypothesis to certify that the economic growth of the RCEP nations will be both an initial contributor and ultimate inhibitor of CO2 emissions. In line with these findings, it is important to lower the country risk profiles of the RCEP nations, restructure the export diversification schemes, ensure technological advancement and expedite economic growth in an environmentally-friendly manner.
Journal: Applied Economics
Pages: 4769-4787
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907289
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907289
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Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4769-4787
Template-Type: ReDIF-Article 1.0
Author-Name: Devika Arumugam
Author-X-Name-First: Devika
Author-X-Name-Last: Arumugam
Author-Name: P Krishna Prasanna
Author-X-Name-First: P Krishna
Author-X-Name-Last: Prasanna
Title: A Game of Hide-and-Seek between Proprietary and Buy-Side Algorithmic Traders: Causal links with Market Quality
Abstract:
This paper classifies Algorithmic Traders (ATs) as Proprietary Algorithmic Traders (PATs) and Buy-side Algorithmic Traders (BATs) and examines their dynamic relationship with market quality, using data from the National Stock Exchange (NSE), India. We find that the two categories of traders cause a differential impact on market quality measures and vice versa. BATs’ order placement improves liquidity by narrowing the quoted spread, while PATs’ and BATs’ cancellation worsens liquidity by widening the quoted spread. PATs’ order placement increases the price impact but reduces the realized spread, whereas their cancellation increases the realized spread. Furthermore, when the quoted spread increases, ATs increase their order placement and cancellation. When the realized spread increases, PATs cancel less of their orders. Contrarily, when the price impact increases, PATs’ participation (both order placement and cancellation) and BATs’ cancellation increase. Besides, we provide new evidence that among the ATs, order placement of BATs crowds out that of PATs, but not vice versa.
Journal: Applied Economics
Pages: 4788-4798
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907290
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907290
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Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4788-4798
Template-Type: ReDIF-Article 1.0
Author-Name: Lilia Rodríguez-Tapia
Author-X-Name-First: Lilia
Author-X-Name-Last: Rodríguez-Tapia
Author-Name: Daniel A. Revollo-Fernández
Author-X-Name-First: Daniel A.
Author-X-Name-Last: Revollo-Fernández
Author-Name: Jorge A. Morales-Novelo
Author-X-Name-First: Jorge A.
Author-X-Name-Last: Morales-Novelo
Author-Name: Carolina Massiel Medina-Rivas
Author-X-Name-First: Carolina Massiel
Author-X-Name-Last: Medina-Rivas
Title: Water in Mexican industry: an economic value study
Abstract:
The manufacturing industry in Mexico is concentrated in the central and northern region of the country, which is characterized by high water stress. This condition foreshadows a complicated future scenario for the industry, such as decreasing water availability in the face of dynamic economic development. The objective of this research is to estimate the economic value of water in the industry. The applied method consists of estimating the marginal productivity of water from the technical function of the production of the manufacturing industry, modelled with a translogarithmic function. The goodness of this function is that it is flexible in the values assumed by its parameters, overcoming the rigidity of the Cobb Douglas function. The information was obtained from the 2014 Industrial Economic Census, which reports data from 476,753 economic units throughout the country. The main research findings are that: i) it is estimated that a cubic metre of water used in the manufacturing industry nationwide creates an added value of 7.8 dollars, and ii) – according to the cross-elasticities estimated in the model – the industry technology is not sufficiently flexible to the possibility of substituting water for work and raw materials, and complementary with capital.
Journal: Applied Economics
Pages: 4799-4809
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1908948
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1908948
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Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4799-4809
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Maria Ferragina
Author-X-Name-First: Anna Maria
Author-X-Name-Last: Ferragina
Author-Name: Stefano Iandolo
Author-X-Name-First: Stefano
Author-X-Name-Last: Iandolo
Author-Name: Erol Taymaz
Author-X-Name-First: Erol
Author-X-Name-Last: Taymaz
Title: Decomposing the immigration-trade link using price and quantity margins: the role of education
Abstract:
This paper examines the immigration-trade links for OECD countries for the 2000–2015 period. By decomposing the overall effect of the presence of immigrants on the export of the hosting countries according to the methodology proposed by Hummels and Klenow (2005), we investigate if there is a migration-driven increase in the number of export relationships (extensive margin) and/or simply a growth of pre-existing export relationships (intensive margin) decomposed by an increase in quantity and price. We consider the country of origin of immigrants and their level(s) of education. Our results confirm the existence of a pro-export effect of immigrants attributable to the contribution of international networks regarding the reduction in information costs, which is especially strong for developed countries as sources of migration. However, when we look at the heterogeneous impact of different levels of immigrants’ education, we find that the pro-trade effect is due to the contribution of less- and more educated immigrants to the reduction of trade costs, while the medium educated do not spur bilateral trade significantly. We address the potential endogeneity problems by adopting an instrumental variable (IV) approach based on shift-share IV and pull-and-push factors that could induce international migration.
Journal: Applied Economics
Pages: 4734-4749
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907287
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907287
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Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4734-4749
Template-Type: ReDIF-Article 1.0
Author-Name: Golaka C. Nath
Author-X-Name-First: Golaka C.
Author-X-Name-Last: Nath
Author-Name: Vardhana Pawaskar
Author-X-Name-First: Vardhana
Author-X-Name-Last: Pawaskar
Author-Name: Manoj Dalvi
Author-X-Name-First: Manoj
Author-X-Name-Last: Dalvi
Author-Name: Manoel Pacheco
Author-X-Name-First: Manoel
Author-X-Name-Last: Pacheco
Title: Testing the expectations hypothesis and explaining the determinants of term premia: evidence from the Indian money market
Abstract:
The pure expectations hypothesis states that the current yields on bonds with different maturities reflect investor expectations of future interest rates. Analysing the short-term inter-bank rates in a Vector Error Correction Model (VECM), the study could reject the pure as well as the general expectations theory in case of the 1 month and 3 months rates but not in case of 14 day rates. The term premia is found to be time-varying. The study attempts to quantify and decompose the term premia, inherent in the money market rates. The study uses the market spreads derived from the swap market, T-Bills, and CD markets to understand the level of decomposition of the term premia. A latent factor model was used to break down the term premia and decompose the same into credit and liquidity risk factors by using information from related money market instruments.
Journal: Applied Economics
Pages: 4750-4768
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907288
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907288
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Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4750-4768
Template-Type: ReDIF-Article 1.0
Author-Name: Ruixue Zhu
Author-X-Name-First: Ruixue
Author-X-Name-Last: Zhu
Author-Name: Xiancun Hu
Author-X-Name-First: Xiancun
Author-X-Name-Last: Hu
Author-Name: Vera Li
Author-X-Name-First: Vera
Author-X-Name-Last: Li
Author-Name: Chunlu Liu
Author-X-Name-First: Chunlu
Author-X-Name-Last: Liu
Title: Investigating economic roles of multinational construction industries: A super-efficiency DEA approach
Abstract:
The economic role of the construction industries has changed across countries in the past decades with rapid economic growth. This research investigates the economic role of multinational construction industries covering 41 countries and regions over 2000–2014 through measuring their overall economic performance and their linkage performance. The efficiency indicators are innovatively measured and ranked by combining the super-efficiency data envelopment analysis (DEA) model with the World Input-Output database. The results demonstrate that the construction industries play an important role in promoting national economic development and enhancing pull effect efficiencies, particularly in less advanced economies. The impact of the construction industries in advanced economies relates mainly to push effect production efficiencies. The research results can assist policymakers and businesses to formulate policies and strategies to ensure the construction industries continue to contribute to the growth and development of the economy. The research provides a feasible pathway towards applying DEA in a multi-regional input-output analysis.
Journal: Applied Economics
Pages: 4810-4822
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910133
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910133
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Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4810-4822
Template-Type: ReDIF-Article 1.0
Author-Name: Honglin Yang
Author-X-Name-First: Honglin
Author-X-Name-Last: Yang
Author-Name: Zhiyuan Zhen
Author-X-Name-First: Zhiyuan
Author-X-Name-Last: Zhen
Author-Name: Hong Wan
Author-X-Name-First: Hong
Author-X-Name-Last: Wan
Title: Optimal portfolio financing selection in a capital-constrained supply chain with risk-averse members
Abstract:
We first consider a supplier-retailer supply chain in which only the capital-constrained retailer is risk-averse while the supplier and the bank both are risk-neutral. The newsvendor-like retailer may fund its business by two portfolio financing schemes to satisfy uncertain market demand: (1) bank loans and the supplier’s equity investment (BCF-SI) and (2) bank loans and the supplier’s credit guarantee (BCF-SG). Using CVaR criterion, we model the behaviour of the risk-averse retailer to analytically derive the portfolio financing equilibrium in a Stackelberg supplier-led game separately for two portfolio financing schemes. We characterize the conditions under which the supplier and the retailer reach Pareto improvement under two portfolio financing schemes compared with the non-financing benchmark. Moreover, we extend the model to the case in that the supplier and retailer both are risk-averse while only the bank is risk-neutral to further investigate the impact of risk aversion on the optimal financing scheme selection. The numerical examples verify our theoretical results.
Journal: Applied Economics
Pages: 4713-4733
Issue: 41
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1907286
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1907286
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Handle: RePEc:taf:applec:v:53:y:2021:i:41:p:4713-4733
Template-Type: ReDIF-Article 1.0
Author-Name: Franziska Zimmert
Author-X-Name-First: Franziska
Author-X-Name-Last: Zimmert
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: The creation and resolution of discrepancies between preferred and actual working hours over the life course
Abstract:
This article contributes to the analysis of working hour discrepancies, i.e., under- and overemployment, by exploring how they emerge and resolve with special consideration of the household context. It uses a rich longitudinal data set, the German Socio-economic Panel, for a discrete duration analysis controlling for unobserved heterogeneity. We focus on the most relevant household and job characteristics. Findings suggest that job autonomy plays a crucial role in the creation and resolution of discrepancies. We especially contribute to previous studies by also examining path dependence and find that both the creation and resolution of discrepancies are characterized by positive duration dependence but by negative occurrence dependence.
Journal: Applied Economics
Pages: 4899-4916
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912279
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912279
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Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4899-4916
Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Peter Dahlin
Author-X-Name-First: Peter
Author-X-Name-Last: Dahlin
Title: Does voluntary auditing help ventures? Evidence from Sweden
Abstract:
Auditing in ventures may provide the necessary financial reporting bulwark, however, auditing also has direct and indirect costs that may be less efficacious in a venture with limited routines and capabilities, and could take an entrepreneur’s attention away from venture goals. We draw on a quasi-natural experiment in Sweden, where from 2011 small private firms meeting threshold criteria were exempt from audit. The law resulted in three groups of ventures – (i) those who were above the threshold criteria and continued with an audit, and among those who were exempt some chose to (ii) voluntarily audit or (iii) opted-out of the audit. Starting with ventures established in 2007 (about three years before the passage of the law), and drawing records of the Swedish Companies Registration Office, our results show that while opting out of audit slightly improves the odds of survival, it has detrimental effects when sales volatility or return on assets are high. Those voluntary auditing can realize a higher debt ratio, but also face a decline in sales and net profit. The findings have implications for entrepreneurs in particular and policymakers considering initiation or repealing of audit requirements for ventures.
Journal: Applied Economics
Pages: 4835-4856
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910135
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910135
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Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4835-4856
Template-Type: ReDIF-Article 1.0
Author-Name: Xuhui Peng
Author-X-Name-First: Xuhui
Author-X-Name-Last: Peng
Author-Name: Zhihan Yang
Author-X-Name-First: Zhihan
Author-X-Name-Last: Yang
Author-Name: Jingjing Shao
Author-X-Name-First: Jingjing
Author-X-Name-Last: Shao
Author-Name: Xue Li
Author-X-Name-First: Xue
Author-X-Name-Last: Li
Title: Board diversity and corporate social responsibility disclosure of multinational corporations
Abstract:
This study discovers the relationship between board diversity and corporate social responsibility (CSR) disclosure of multinational corporations (MNCs). The existing studies have shown the positive roles of board gender diversity (BGD), education background diversity (EBD), and tenure diversity (TD) in decision-making. Thus, we believe that the positive effect also exists in the strategic CSR decision-making process of the board of directors; it enhances corporate environmental disclosure (ED) and social disclosure (SD). After investigating 140 MNCs from China, Japan, the UK, and the US, the result shows that (1) BGD positively affects ED and SD of MNCs and (2) TD positively affects SD of MNCs. This study further explains the relationship between board diversity and CSR disclosure from the perspective of stakeholder and resource-based view, emphasizing the role of board diversity in stakeholder management and the effectiveness of CSR decision-making. The study helps provide policy makers with inspirations to improve CSR of MNCs by formulating policies related to board diversity. Our evidence also helps MNCs to develop the criteria for improving CSR strategy through board diversity.
Journal: Applied Economics
Pages: 4884-4898
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910620
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910620
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Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4884-4898
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Dennis Alba
Author-X-Name-First: Joseph Dennis
Author-X-Name-Last: Alba
Author-Name: Peiming Wang
Author-X-Name-First: Peiming
Author-X-Name-Last: Wang
Title: Trilemma, dilemma or 2.5-lemma in the transmission of monetary policy: evidence from a Markov-switching panel data model
Abstract:
We examine the spill-over effects of interest rate transmission of United States monetary policy to peripheral countries with various exchange rate regimes and capital control management policies. To do so, we propose a two-state continuous-time hidden Markov-switching panel data model using an empirical framework based on the Taylor rule. We find peripheral countries with flexible exchange rates and free capital mobility respond differently to changes in short-term US interest rates under the two regimes based on interest rate volatility. Under the high volatility regime, peripheral countries respond to decreases but not to increases in short-term US interest rate. Under the low volatility regime, peripheral countries respond more strongly to an increase than a decrease in short-term US interest rate. In addition, peripheral countries under high volatility regimes respond more strongly than countries under low volatility regimes to a decrease in short-term US interest rate. In both volatility regimes, capital controls insulate the peripheral countries from changes in the short-term US interest rate regardless their exchange rate regimes.
Journal: Applied Economics
Pages: 4917-4929
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912281
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912281
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Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4917-4929
Template-Type: ReDIF-Article 1.0
Author-Name: Ryadh Alkhareif
Author-X-Name-First: Ryadh
Author-X-Name-Last: Alkhareif
Author-Name: Moayad Al-Rasasi
Author-X-Name-First: Moayad
Author-X-Name-Last: Al-Rasasi
Title: Estimating the money demand function for Saudi Arabia using divisia monetary aggregate
Abstract:
This paper constructs the broader Divisia monetary aggregate (D2) for the Kingdom of Saudi Arabia over the period from 1999 to 2018. Unlike the traditional money supply aggregate (M2), movements of the Divisia monetary aggregate seems to reflect the domestic economic developments and hence can be very useful when setting macroeconomic policies in the Kingdom. In addition, the paper applies the Keynesian Money Demand Theory to estimate the demand for money using the Divisia monetary aggregate. The findings confirm the stability of the money demand function for Saudi Arabia.
Journal: Applied Economics
Pages: 4823-4834
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910134
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910134
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Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4823-4834
Template-Type: ReDIF-Article 1.0
Author-Name: Yaxian Gong
Author-X-Name-First: Yaxian
Author-X-Name-Last: Gong
Title: Quality disclosure with substitute and complementary goods
Abstract:
This paper analyzes the quality disclosure when firms simultaneously choose the quantities of products to be produced. By assuming that each firm is privately informed about the quality of its own products and makes quality disclosure decisions after observing private information, we identify the effects of the degree of substitution/complementarity on the amount of disclosed information. We find that when commodities are substitute goods, fixing the disclosure cost, the relationship between competitiveness and the amount of disclosed information is non-monotonic. Furthermore, when commodities are complementary goods, increasing the degree of complementarity will lead to more information being disclosed.
Journal: Applied Economics
Pages: 4857-4867
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910618
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910618
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Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4857-4867
Template-Type: ReDIF-Article 1.0
Author-Name: José C. Fariñas
Author-X-Name-First: José C.
Author-X-Name-Last: Fariñas
Author-Name: Ana Martín-Marcos
Author-X-Name-First: Ana
Author-X-Name-Last: Martín-Marcos
Author-Name: Francisco J. Velázquez
Author-X-Name-First: Francisco J.
Author-X-Name-Last: Velázquez
Title: Scale of operations of MNCs and heterogeneity: a multi-country analysis
Abstract:
This paper examines the relationship between the productivity of parent firms and the scale of their subsidiaries in foreign markets. The empirical exam is based on a large sample of firms from 32 different countries. The average elasticity estimated for the baseline sample is 0.34; i.e. a 1% increase in labour productivity increases the scale of subsidiaries by 0.34%. For TFP, the elasticity is slightly lower, 0.23. The relationship is much stronger for manufacturing firms than for firms in the service sector. The paper also analyzes the degree of heterogeneity of elasticities estimated across countries. We find differences in the magnitude of elasticities but confirm the positive relationship between scale and parent firm productivities for a large fraction of countries. It also addresses the issue of potential endogeneity of productivity. The positive relationship between scale and productivity is confirmed when controlling for this.
Journal: Applied Economics
Pages: 4868-4883
Issue: 42
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1910619
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1910619
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Handle: RePEc:taf:applec:v:53:y:2021:i:42:p:4868-4883
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Zare
Author-X-Name-First: Mohammad
Author-X-Name-Last: Zare
Author-Name: Omid Naghshineh A.
Author-X-Name-First: Omid
Author-X-Name-Last: Naghshineh A.
Author-Name: Erfan Salavati
Author-X-Name-First: Erfan
Author-X-Name-Last: Salavati
Author-Name: Adel Mohammadpour
Author-X-Name-First: Adel
Author-X-Name-Last: Mohammadpour
Title: An agent-based model and detect price manipulation based on intraday transaction data with simulation
Abstract:
In this article, we propose an agent-based model for LOB markets, and by simulation, we estimate the model’s parameters. This model has two interesting points. First, we divide the data transaction of 1 day into six parts. Second, we detect price manipulation by using intraday transaction data. To detect price manipulation, we simulate the model once without the price manipulator and once with the price manipulator, and then by using some statistical properties such as skewness we find relations to detect price manipulation.
Journal: Applied Economics
Pages: 4931-4949
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912282
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912282
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Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4931-4949
Template-Type: ReDIF-Article 1.0
Author-Name: Yosra Ghabri
Author-X-Name-First: Yosra
Author-X-Name-Last: Ghabri
Author-Name: Ahmed Ayadi
Author-X-Name-First: Ahmed
Author-X-Name-Last: Ayadi
Author-Name: Khaled Guesmi
Author-X-Name-First: Khaled
Author-X-Name-Last: Guesmi
Title: Fossil energy and clean energy stock markets under COVID-19 pandemic
Abstract:
This paper analyses the dynamic impact of fossil energy shocks (crude oil and Natural gas) on renewable clean energy stock markets during the COVID-19 pandemic. Using a time-varying VAR model with stochastic volatilities, we conduct distinct analyses over the period from 10th March to 15th June 2020, while distinguishing between three sub-periods. Our key findings show a significant increase in the returns of clean energy stocks after the sharp collapse of crude oil prices. However, we find the opposite effect on renewable energy stock returns after the OPEC+ agreement. The results also indicate that the announcement of COVID-19 as a global pandemic caused the prices of both Natural gas and renewables to rise after a decrease. By contrast, after the crude oil shocks, there was no response of renewables to Natural gas shocks. Furthermore, the stochastic volatility reveals that after the OPEC-Russia agreements, the volatility of crude oil returns gets back to normal and steady fluctuation. Our results provide useful implications for policy-makers to mitigate the negative effects on renewable energy investments due the uncertainty related to the ongoing pandemic.
Journal: Applied Economics
Pages: 4962-4974
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912284
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912284
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Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Maria Malmierca
Author-X-Name-First: Maria
Author-X-Name-Last: Malmierca
Title: Persistence in the private debt-t -GDP ratio: evidence from 43 OECD countries
Abstract:
This paper investigates the degree of persistence of the private debt-to-GDP ratio in 43 OECD countries by estimating the fractional integration parameter of each series. Almost all of them are found to be highly persistent, with orders of integration around or above 1. The only exception is Argentina, where the series appears to be mean-reverting. These results highlight the key importance of macroprudential policy as one of the pillars of macro policy.
Journal: Applied Economics
Pages: 5018-5027
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912700
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912700
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Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:5018-5027
Template-Type: ReDIF-Article 1.0
Author-Name: Maolin Wang
Author-X-Name-First: Maolin
Author-X-Name-Last: Wang
Author-Name: Huiting Lin
Author-X-Name-First: Huiting
Author-X-Name-Last: Lin
Author-Name: Yehua Huang
Author-X-Name-First: Yehua
Author-X-Name-Last: Huang
Title: Structural holes and R&D investment: evidence from top management teams of China’s A-share listed firms
Abstract:
The extant literature recognize that social relations and networks strengthen corporate innovation, but the contribution of the top management teams and the channel of social status and network location in corporate innovation is not well addressed. By constructing firm-to-firm matrices by top management team members’ experience with the data set of China’s A-share listed companies, we find that higher status and better network location with more structural holes foster corporate R&D investment and the number of invention patents, although the effect on total innovation outputs is not significant. What’s more, the external and internal tunnels are further explored by testing the effect of information booming and absorptive willingness. It is confirmed that the positive impact of structural holes on corporate innovation is magnified with the penetration of high-speed rail and internet as well as high compensation incentive. This research supports the structural holes advantage theory, expands the research of the social networks, and provides reference for corporate innovation practice by taking advantages of structural holes from the top management teams.
Journal: Applied Economics
Pages: 4985-4999
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912698
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912698
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Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4985-4999
Template-Type: ReDIF-Article 1.0
Author-Name: Chung Choe
Author-X-Name-First: Chung
Author-X-Name-Last: Choe
Author-Name: Sung Hoon Kang
Author-X-Name-First: Sung Hoon
Author-X-Name-Last: Kang
Author-Name: Koangsung Choi
Author-X-Name-First: Koangsung
Author-X-Name-Last: Choi
Title: Effects of wage-peak system on youth employment: Evidence from South Korea
Abstract:
After the increase in the minimum retirement age, South Korea introduced a wage-peak system to mitigate increases in firm costs due to the wage of elderly workers. In this study, we examined how the later retirement age has affected employment opportunities for younger workers. We also investigated the difference in impact of later retirement on employment between firms within and outside of the system. Using the difference-in-differences empirical method, we found that this system has increased employment opportunities for younger workers. Moreover, as the proportion of elderly workers increases, the effect of the wage-peak system on the proportion of young workers is enhanced.
Journal: Applied Economics
Pages: 4975-4984
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912697
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912697
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Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4975-4984
Template-Type: ReDIF-Article 1.0
Author-Name: Fabian Frick
Author-X-Name-First: Fabian
Author-X-Name-Last: Frick
Author-Name: Corina Jantke
Author-X-Name-First: Corina
Author-X-Name-Last: Jantke
Author-Name: Johannes Sauer
Author-X-Name-First: Johannes
Author-X-Name-Last: Sauer
Title: Firm-level innovation and efficiency in the food sector: Insights from a literature-based innovation output indicator
Abstract:
Innovation activity is commonly regarded as one prerequisite for the competitiveness of food manufacturers. However, new product introductions typically face a high failure rate, which frequently deprives food manufacturers of returns on new product developments. Accordingly, existing empirical evidence on the effect of innovation activity on firm performance is not unanimous in the food sector. In this study, we explore contemporaneous and lagged effects of product and process innovation on production efficiency of dairy processors in the German market. Endogeneity of innovation variables and production inputs is accounted for by instrumentation using a System GMM approach. While we find no positive effect of patents or the number of new product launches on efficiency, we find a consistent positive effect of successful new products on the dairy processors’ technical efficiency. On the methodological side, our results confirm the relevance of the literature-based innovation output indicator as a differentiated measure of product innovation suitable for measuring the innovation effect on firm performance. Regarding innovation management in the food sector, the results highlight the challenge related to high failure rates of new products in the food sector and emphasize the importance of new product quality for business performance.
Journal: Applied Economics
Pages: 5000-5017
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912699
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912699
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Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:5000-5017
Template-Type: ReDIF-Article 1.0
Author-Name: Yacine Hammami
Author-X-Name-First: Yacine
Author-X-Name-Last: Hammami
Author-Name: Youssef Riahi
Author-X-Name-First: Youssef
Author-X-Name-Last: Riahi
Title: Leverage and balance-sheet size: a comparative study between Islamic and conventional banks
Abstract:
We carry out a comparative analysis of procyclical leverage between Islamic banks and conventional banks in the GCC countries and Malaysia. We collect an unbalanced panel data set including 57 conventional banks and 73 Islamic banks covering the period 2000–2019. First, we document strong evidence of procyclical leverage for our sample banks. Second, our results highlight that conventional banks have statistically stronger leverage procyclicality than Islamic banks, even after controlling for accounting profitability, economic conditions, bank regulations, and wholesale funding. Moreover, we document that the differential in the leverage procyclicality across Islamic banks and conventional banks has been stronger after the global financial crisis, and seems to be more pronounced in small banks compared with large banks. Our findings suggest that the differential in the leverage procyclicality across the two types of banks is related to their different business models. An implication of our results is that the low leverage procyclicality of Islamic banks is a key factor contributing to the stability of a dual banking system.
Journal: Applied Economics
Pages: 4950-4961
Issue: 43
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1912283
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912283
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Handle: RePEc:taf:applec:v:53:y:2021:i:43:p:4950-4961
Template-Type: ReDIF-Article 1.0
Author-Name: Panagiota Papadimitri
Author-X-Name-First: Panagiota
Author-X-Name-Last: Papadimitri
Author-Name: Fotios Pasiouras
Author-X-Name-First: Fotios
Author-X-Name-Last: Pasiouras
Author-Name: Menelaos Tasiou
Author-X-Name-First: Menelaos
Author-X-Name-Last: Tasiou
Title: Financial leverage and performance: the case of financial technology firms
Abstract:
Over the past years, the financial technology industry has gained considerable attention from policy makers and regulators, market participants, as well as the general public. Despite the interest of these stakeholders, academic research on the topic is scarce and we aim to extend the literature by examining the impact of financial leverage on the performance of FinTech firms. Using a sample of 146 U.S. FinTech firms operating in ten market segments over the period 2000–2016, we find that financial leverage has a negative impact on profitability and risk-adjusted performance. We also reveal that the magnitude of the influence of leverage depends on firm age. The results are robust to the use of a cross-country sample, alternative model specifications and estimation approaches.
Journal: Applied Economics
Pages: 5103-5121
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1915949
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1915949
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Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5103-5121
Template-Type: ReDIF-Article 1.0
Author-Name: Fabricio Linhares
Author-X-Name-First: Fabricio
Author-X-Name-Last: Linhares
Author-Name: Glauber Nojosa
Author-X-Name-First: Glauber
Author-X-Name-Last: Nojosa
Author-Name: Rogerio Bezerra
Author-X-Name-First: Rogerio
Author-X-Name-Last: Bezerra
Title: Changes in the revenue–expenditure nexus: confronting evidence with fiscal policy in Brazil
Abstract:
This study examines causality shifts in the revenue–expenditure nexus in Brazil during the years 1996–2019. The literature usually assumed a time-invariant causality link between government revenues and expenditures. Such assumption becomes often implausible when the sample period covers significant economic, political and policy changes, like the case of Brazil in the last two decades. Based on time-varying Granger causality tests, we found three distinct causality episodes: fiscal synchronization in 2005–2008, spend-and-tax in 2010–2013, and a tax-and-spend in 2015–2018. These episodes are intercalated with periods of no causality that coincides with economic crisis, political turmoil and major shifts in fiscal policy. The findings suggest that the interplay between fiscal policy orientation and primary surplus targeting is an important factor in the revenue–expenditure nexus. The most recent causality episode suggests stronger effects running from revenues to expenditures in the Brazilian primary budget dynamics. In this context, according to the tax-and-spend hypothesis, cutting spending seems to be the right course of action to restore fiscal balance in Brazil. A tax increase should be considered with caution because it may only incentive the government to grow its expenditures.
Journal: Applied Economics
Pages: 5051-5067
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1915463
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1915463
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Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5051-5067
Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Marcus T. Wolfe
Author-X-Name-First: Marcus T.
Author-X-Name-Last: Wolfe
Author-Name: Andrew S Manikas
Author-X-Name-First: Andrew S
Author-X-Name-Last: Manikas
Title: Talk is cheap?! The value of a ban on product simulations and renderings on a crowdfunding platform
Abstract:
We exploit the 20 September 2012 intervention on Kickstarter where projects in the Hardware and Project Design categories, but not in other categories, were prohibited from presenting simulations and renderings in their crowdfunding campaigns. Using a partition-type analysis estimate for 110,258 projects, we find that the intervention lowered the odds of meeting the funding goal (extensive margin); however, it did not significantly increase the amount of funding received above the goal amount (intensive margin). The findings are robust to pre-trends tests. Post-intervention, based on the exploration-exploitation framework, projects in the treated categories used more exploitative (vs. explorative) language. Furthermore, projects in the treated category benefited from using narcissistic and entrepreneurial orientation rhetoric before the intervention; however, this did not hold after the intervention. Finally, projects from the control categories did not increase deceptive language after the intervention and experienced lower odds of meeting funding goals after the intervention when using ambiguous language. The findings highlight the role of centralized intervention in improving signals on noisy crowdfunding platforms and the declining role of rhetoric for both treated and control categories.
Journal: Applied Economics
Pages: 5068-5089
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1915464
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1915464
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Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5068-5089
Template-Type: ReDIF-Article 1.0
Author-Name: Sumei Luo
Author-X-Name-First: Sumei
Author-X-Name-Last: Luo
Author-Name: Yixiang Shi
Author-X-Name-First: Yixiang
Author-X-Name-Last: Shi
Author-Name: Yongkun Sun
Author-X-Name-First: Yongkun
Author-X-Name-Last: Sun
Author-Name: Zhiqi Zhao
Author-X-Name-First: Zhiqi
Author-X-Name-Last: Zhao
Author-Name: Guangyou Zhou
Author-X-Name-First: Guangyou
Author-X-Name-Last: Zhou
Title: Can FDI and ODI two-way flows improve the quality of economic growth? Empirical Evidence from China
Abstract:
Different from the existing literature which only studied the unilateral impact of the FDI or the ODI on economic growth, this paper took both the FDI and the ODI into the analysis framework of international capital flow on economic growth, and tried to introduce the mediating effect model to test the transmission mechanism and influence effect of international capital two-way flow on the economic growth. The results showed that both the FDI and the ODI can significantly improve the quality of economic growth, and the role of the FDI was stronger than that of the ODI. At the same time, the FDI and the ODI had obvious regional heterogeneity in promoting the quality of economic growth. International capital flow mainly requires three mediating effects to improve the quality of economic growth, which are the employment, the technology spillover as well as the output efficiency. The three effects of the FDI have a played significant role in promoting the quality of economic growth, while the ODI mainly plays a role through the improvement of output efficiency and technology reverse spillover. There are also significant regional differences in mediating effects.
Journal: Applied Economics
Pages: 5028-5050
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1914318
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1914318
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Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5028-5050
Template-Type: ReDIF-Article 1.0
Author-Name: Runqi Zhang
Author-X-Name-First: Runqi
Author-X-Name-Last: Zhang
Author-Name: Jinlong Zhao
Author-X-Name-First: Jinlong
Author-X-Name-Last: Zhao
Author-Name: Jingyuan Zhao
Author-X-Name-First: Jingyuan
Author-X-Name-Last: Zhao
Title: Effects of free trade agreements on global value chain trade----a research perspective of GVC backward linkage
Abstract:
Using the World Input-Output Database from 2000 to 2014 combined with the Database from the World Bank, this paper examines the export promotion effects of FTAs on member countries’ GVC trade. Empirical analysis shows that, first, the depth of free trade agreements has significant positive effects on both the total trade and exports of foreign value added (FVA) among member countries. Each additional core clause in free trade agreement will increase the FVA exports by 0.27%. Second, free trade agreements not only enhance the export levels of simple value chains and complex value chains but promote the value-added exports of all sub-items of GVC trade at different levels. Further study shows that gaps in economic development levels among FTA members and FTA structures can both lead to asymmetric and heterogeneous effects on their FVA exports. Moreover, as to FTA contents, WTO-X clauses which focus more on trade policy coordination behind the border have more important impacts on FTA members’ FVA exports.
Journal: Applied Economics
Pages: 5122-5134
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1917763
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1917763
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Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5122-5134
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Author-Name: Liwei Guo
Author-X-Name-First: Liwei
Author-X-Name-Last: Guo
Title: Sources of production growth in Chinese agriculture:empirical evidence from penal data results 2001–2018
Abstract:
First of all, this article uses the regional panel data of Chinese agriculture ranging from 2001–2018 as samples, taking the relationship among the three, namely, factor allocation efficiency, biased technical progress and agricultural total factor productivity, as the entry point to systematically analyse the fluctuation of total factor productivity growth and its decomposition terms. Then, the bias index of technical progress and factor allocation are measured by relaxing the strict assumption of alternative elastic fixation and broadening the traditional hypothesis of neutral technical progress by using C-D functions, respectively. Finally, this article puts highlight on the following questions: What is the source of sustained growth of agricultural TFP at this stage? Which factor does the agricultural factor allocation efficiency depend on? Whether there are existing distortion and bias in agricultural factor allocation and if the bias of which is in step with agricultural-biased technical progress?
Journal: Applied Economics
Pages: 5135-5157
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1918626
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1918626
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Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5135-5157
Template-Type: ReDIF-Article 1.0
Author-Name: Luigi Ventura
Author-X-Name-First: Luigi
Author-X-Name-Last: Ventura
Author-Name: Maria Ventura
Author-X-Name-First: Maria
Author-X-Name-Last: Ventura
Title: Migration, diversity and regional risk sharing
Abstract:
The economic consequences of migration have become the topic of many recent contributions in theoretical and applied economics. However, only a handful of papers have dealt with the implications of migration for risk sharing. We intend to fill in this gap in the literature by exploring the effects of migration and the ensuing cultural diversity on risk sharing in receiving economies, by using data on US states in the period 2000–2015. Our empirical results strongly suggest that migration enhances risk sharing in host economies, but non monotonically so. Moreover, cultural diversity is key in this risk sharing-enhancing effect of migration.
Journal: Applied Economics
Pages: 5090-5102
Issue: 44
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1915465
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1915465
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Handle: RePEc:taf:applec:v:53:y:2021:i:44:p:5090-5102
Template-Type: ReDIF-Article 1.0
Author-Name: Fakhri J. Hasanov
Author-X-Name-First: Fakhri J.
Author-X-Name-Last: Hasanov
Author-Name: Jeyhun I. Mikayilov
Author-X-Name-First: Jeyhun I.
Author-X-Name-Last: Mikayilov
Author-Name: Muhammad Javid
Author-X-Name-First: Muhammad
Author-X-Name-Last: Javid
Author-Name: Moayad Al-Rasasi
Author-X-Name-First: Moayad
Author-X-Name-Last: Al-Rasasi
Author-Name: Frederick Joutz
Author-X-Name-First: Frederick
Author-X-Name-Last: Joutz
Author-Name: Mohammed B Alabdullah
Author-X-Name-First: Mohammed B
Author-X-Name-Last: Alabdullah
Title: Sectoral employment analysis for Saudi Arabia
Abstract:
This study aims to explore the impact of output and wage on labour demand in Saudi Arabia at sectoral level. We applied cointegration and equilibrium correction methods to the time-series data of 10 sectors over 1995–2016 using the demand side framework and considering the structural breaks in the data. We found that in the long run, the employment is positively affected by the output while the impact of the wage was negative in all sectors. In the short-run, employment growth in all sectors reacted to the wage growth except for the government sector. While only some sectors responded to the output growth, we also found that employment can adjust to the desired equilibrium level in all sectors but time horizon for the adjustment processes varies across the sectors. Differences in estimated coefficients imply that policies should be sector-specific as a ‘one-fits-all’ policy would fail to consider the sectoral specificities.
Journal: Applied Economics
Pages: 5267-5280
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922590
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922590
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Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5267-5280
Template-Type: ReDIF-Article 1.0
Author-Name: Jeffrey (Jun) Chen
Author-X-Name-First: Jeffrey (Jun)
Author-X-Name-Last: Chen
Author-Name: Fariz Huseynov
Author-X-Name-First: Fariz
Author-X-Name-Last: Huseynov
Author-Name: Bochen Li
Author-X-Name-First: Bochen
Author-X-Name-Last: Li
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Title: Local risk preference and corporate policies: evidence from M&A
Abstract:
This article examines whether and how the firms’ mergers and acquisitions (M&A) policies are influenced by the risk preference of local community where the firms’ headquarters are located. By utilizing the different preferences towards risk-taking from the county-level religiosity-based measure, we document a significantly positive relation between the local risk preference and the likelihood of firms’ M&A. Firms whose headquarters are located in the counties with a higher degree of risk tolerance are more likely to engage in takeovers or acquire riskier targets. Local risk preference also results in wealth transfer during M&A that reduces acquirers’ equity value. When interacting with firm CEOs’ career concern and financial compensation, we find that managerial risk-taking incentive can be significantly affected by the local risk preference, suggesting an important economic interplay between the social norms and financial decision-making.
Journal: Applied Economics
Pages: 5158-5176
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1921688
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1921688
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Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5158-5176
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Gravel
Author-X-Name-First: Nicolas
Author-X-Name-Last: Gravel
Author-Name: Edward Levavasseur
Author-X-Name-First: Edward
Author-X-Name-Last: Levavasseur
Author-Name: Patrick Moyes
Author-X-Name-First: Patrick
Author-X-Name-Last: Moyes
Title: Evaluating education systems
Abstract:
This paper proposes two dominance criteria for evaluating education systems described as joint distributions of the pupils’ cognitive skill achievements and family backgrounds. The first criterion is the smallest transitive ranking of education systems compatible with three elementary principles. The first principle requires the favorable recording of any improvement in the cognitive skill of a child with a given family background . The second principle demands that any child’s cognitive skill be all the more favourably appraised as the child is coming from an unfavourable background. The third principle states that when two different skills and family backgrounds are allocated between two children, it is preferable that the high skill be given to the low background child than the other way around. Our second criterion adds to the three principles the elitist requirement that a mean-preserving spread in the skills of two children with the same background be recorded favorably. We apply our criteria to the ranking of education systems of 43 countries, where we measure cognitive skills by PISA score in mathematics and famly background by the largest of the two parents’International Socio Economic Index. Our criteria conclusively compare about 19% of all the possible pairs of countries..
Journal: Applied Economics
Pages: 5177-5207
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922586
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922586
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Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5177-5207
Template-Type: ReDIF-Article 1.0
Author-Name: Yinxiao Chu
Author-X-Name-First: Yinxiao
Author-X-Name-Last: Chu
Author-Name: Xiaoyu Huang
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Huang
Author-Name: Tao Jin
Author-X-Name-First: Tao
Author-X-Name-Last: Jin
Title: Political relations and tourism: evidence from China
Abstract:
This paper provides empirical evidence on how political relations affect the tourism market. We use monthly data to identify the pattern of short-lived effects of political shocks in the tourism market. A political relation shock has an immediate effect on Chinese outbound tourism, and then the effect is amplified in the next month before it vanishes in the following months. Particularly, the negative political shocks, namely political disputes, are responsible for most of the effects on outbound tourism. Moreover, we investigate the specific mechanism in China through which political relation shocks affect outbound tourism. We find that government interference by issuing travel warnings plays a crucial role in the mechanism. Further analysis on tourists’ demand shows that deterioration in political relations itself has no direct effects on tourists’ demand. However, when accompanied by the issuance of travel warnings, the negative political shocks significantly reduce tourists’ willingness to travel to the opposing countries.
Journal: Applied Economics
Pages: 5281-5302
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922591
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922591
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Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5281-5302
Template-Type: ReDIF-Article 1.0
Author-Name: Qi Cui
Author-X-Name-First: Qi
Author-X-Name-Last: Cui
Author-Name: Bo Yuan
Author-X-Name-First: Bo
Author-X-Name-Last: Yuan
Author-Name: Yexin Zhou
Author-X-Name-First: Yexin
Author-X-Name-Last: Zhou
Author-Name: Hao Chen
Author-X-Name-First: Hao
Author-X-Name-Last: Chen
Author-Name: Yuanning Hu
Author-X-Name-First: Yuanning
Author-X-Name-Last: Hu
Title: Will bad air quality affect the siting of foreign-invested manufacturing enterprises? The evidence from China
Abstract:
Albeit notably increasing studies dedicated to investigating the impact of air pollution on enterprises’ productivity and profit, few have oriented onto explicitly probing how the enterprises, particularly those foreign-invested firms, made their location choices concerning air quality. Accordingly, this study contributes to explain the impact of air pollution on the site selection of foreign-invested manufacturing enterprises with a unique firm-level dataset of China. The study also discloses the heterogeneity of air pollution effects attributable to enterprises’ various features regarding ownership property, host country, industrial classification, and investment scale. Our result justifies a statistically significant and negative impact of air pollution on the siting of foreign-invested manufacturing enterprises. The heterogeneous effects of air pollution manifest that the location choice would be remarkably more sensitive for the sole-venture enterprises, and for those headquartered in developed countries, engaged in high-technology industries, and at small and medium investment scales. The study finds that the siting of small-scale firms in high-technology sectors appears to be the most sensitive to air pollution, signifying that air pollution severity would be a pivotal factor pushing aside high-quality foreign-invested enterprises to invest in polluted areas in general.
Journal: Applied Economics
Pages: 5221-5241
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922588
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922588
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Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5221-5241
Template-Type: ReDIF-Article 1.0
Author-Name: Alejandro Esteller-Moré
Author-X-Name-First: Alejandro
Author-X-Name-Last: Esteller-Moré
Author-Name: Leonzio Rizzo
Author-X-Name-First: Leonzio
Author-X-Name-Last: Rizzo
Author-Name: Riccardo Secomandi
Author-X-Name-First: Riccardo
Author-X-Name-Last: Secomandi
Title: The role of tax system complexity on foreign direct investment
Abstract:
We present new cross-country empirical evidence that tax system complexity affects the location of international investment. The evidence comes from a database of foreign direct investment (FDI) bilateral flows for all OECD countries over the 2013–2016 period, and from the Doing Business survey, which collects several measures of tax system complexity and effective tax rates. By means of a gravity model, we consider the impact of destination and parent country characteristics on firm investment decisions. An increase in the difference between tax complexity in the home country and the destination country is related with an increase in FDI outflows from home to destination. We do not find any significant impact of tax rate differentials on FDI outflows.
Journal: Applied Economics
Pages: 5208-5220
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922587
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922587
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Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5208-5220
Template-Type: ReDIF-Article 1.0
Author-Name: Sanket Mohapatra
Author-X-Name-First: Sanket
Author-X-Name-Last: Mohapatra
Author-Name: Siddharth M. Purohit
Author-X-Name-First: Siddharth M.
Author-X-Name-Last: Purohit
Title: The implications of economic uncertainty for bank loan portfolios
Abstract:
This paper analyzes the impact of economic uncertainty on the composition of bank credit across household and firm loans. Using bank-level data spanning 40 developed and developing countries, we find that higher economic uncertainty is associated with an increase in the relative share of household credit in the loan portfolio of banks. This change in composition of credit may result from banks’ efforts to reduce the overall riskiness of their loan portfolios, since corporate loans are generally viewed as riskier than household loans. This shift is more pronounced for weakly-capitalized banks, which may face greater risks during economic shocks, and for larger banks, which may be riskier due to complex business models and more market-based activities. The variation in our main findings by banks’ capitalization and size suggests that they partly arise from bank-specific factors in response to greater uncertainty. The baseline results hold for a range of robustness tests. Our study highlights the role of aggregate uncertainty in micro-level outcomes and is relevant for bank capital regulation and the conduct of macroprudential policy.
Journal: Applied Economics
Pages: 5242-5266
Issue: 45
Volume: 53
Year: 2021
Month: 09
X-DOI: 10.1080/00036846.2021.1922589
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922589
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Handle: RePEc:taf:applec:v:53:y:2021:i:45:p:5242-5266
Template-Type: ReDIF-Article 1.0
Author-Name: Shuzhong Ma
Author-X-Name-First: Shuzhong
Author-X-Name-Last: Ma
Author-Name: Chao Fang
Author-X-Name-First: Chao
Author-X-Name-Last: Fang
Title: The Effect of Online Search on International Trade
Abstract:
In the literature, search engines are considered as effective tools for obtaining information. However, little attention has been paid to the effect of search engines on international trade even though information (barrier) is very important in international trade. To address this issue, we analyse how online search, proxied by Google Trends Interest by Region (GTIR), affects international trade in a classic gravity model. Our results show that online search intensity between the two countries can significantly promote international trade. This finding is robust to a wide range of tests, including instrumental variable estimation, different specifications and different estimators. Mechanism analysis shows that online search is likely to increase trade by overcoming unfamiliarity and reducing trade risks. Since the role of online search is similar to that of traditional networks, we further conduct extended analysis and find that online search is likely to substitute, rather than complement, migration networks in international trade. Since many traditional networks are broken due to the pandemic, online search is promising to become increasingly important in the future.
Journal: Applied Economics
Pages: 5369-5384
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922593
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922593
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Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5369-5384
Template-Type: ReDIF-Article 1.0
Author-Name: Jin Xu
Author-X-Name-First: Jin
Author-X-Name-Last: Xu
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: The effects of tax and fee reduction policy on mitigating shock of the COVID-19 epidemic in China
Abstract:
The lockdown measures taken by the Chinese government have proven to be an effective approach to prevent COVID-19, but have a major negative impact on the economy. The Chinese government quickly implemented a large-scale tax and fee reduction policy to hedge against negative shocks. In light of these facts, this article constructs a multi-regional dynamic-recursive computable general equilibrium (CGE) model to evaluate the short-term and medium-term effects of COVID-19 on the macroeconomy, energy and environment. The results show that: (1) Without adopting tax incentives, GDP, residents’ consumption, exports, and secondary and tertiary industry output will grow weakly in 2020. Leapfrogging development will occur in 2021, whereas import volume and consumer price index will drop sharply. (2) If the tax reduction policy is introduced, GDP will increase by 2.83% and 7.4% in 2020 and 2021. Imports, exports, and output of the secondary and tertiary industries will grow substantially, along with a significant rise in fossil fuels consumption and carbon emission. (3) Hubei, the worst hit by COVID-19, will quickly resume normal development.
Journal: Applied Economics
Pages: 5303-5318
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1904119
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1904119
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Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5303-5318
Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Wehner
Author-X-Name-First: Caroline
Author-X-Name-Last: Wehner
Author-Name: Trudie Schils
Author-X-Name-First: Trudie
Author-X-Name-Last: Schils
Title: Who are the low educational achievers? An analysis in relation to gender, emotional stability and conscientiousness
Abstract:
Low educational qualification, i.e. reaching no or only a very basic educational degree, substantially decreases an individual’s prospects on todays labour market. Emotional stability and conscientiousness are known to be predictive of educational achievement. Nevertheless, the moderating role of these two personality traits on the outcome of low educational qualification, and the interaction with gender are far less explored. In this paper, we use rich data from the British Cohort Study 1970 to analyse the relationship between personality measured in adolescence and educational achievement in adulthood. Our results show that less emotionally stable and less conscientious females have the highest risk of reaching only a low educational qualification. In contrast, more emotionally stable and less conscientious males face an above average risk of reaching a low educational qualification. Our results suggest that neglecting gender differences in the moderating relation of these two personality traits on low educational achievement is likely misleading.
Journal: Applied Economics
Pages: 5354-5368
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922592
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922592
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Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5354-5368
Template-Type: ReDIF-Article 1.0
Author-Name: Jing Guan
Author-X-Name-First: Jing
Author-X-Name-Last: Guan
Author-Name: J.D. Tena
Author-X-Name-First: J.D.
Author-X-Name-Last: Tena
Title: Estimating the effect of physical exercise on juveniles’ health status and subjective well-being in China
Abstract:
Despite the increasing interest in analysing determinants of health status and subjective well-being, existing research has been mainly confined to developed countries’ adult population. This paper estimates the effect of physical exercise on the health and happiness of Chinese adolescent. Using a comprehensive database from the China Education Panel Survey (number of observations: 5975), different methodologies, including instrumental variable and propensity score matching approaches, are applied. We find that physical exercise has a significantly positive effect on health. Our results also suggest some evidence of a positive impact of exercise on well-being. This effect is robust to different econometric approaches, exercise participation measurements, and characteristics of students and schools and families. However, exercise benefits become evident even when it is practised with low frequency, i.e. one day per week. Moreover, physical exercise exerts a higher impact on students with poorer health and higher levels of unhappiness. Our results highlight the beneficial impact of political decisions aiming to incentivize physical exercise to improve adolescents’ health status in developing countries.
Journal: Applied Economics
Pages: 5385-5396
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922594
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922594
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Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5385-5396
Template-Type: ReDIF-Article 1.0
Author-Name: Yongwoong Lee
Author-X-Name-First: Yongwoong
Author-X-Name-Last: Lee
Author-Name: Yongbok Cho
Author-X-Name-First: Yongbok
Author-X-Name-Last: Cho
Author-Name: Kisung Yang
Author-X-Name-First: Kisung
Author-X-Name-Last: Yang
Title: Optimal look-back period for adequate and less procyclical credit capital forecasts
Abstract:
This study presents an approach to determining the optimal look-back period for adequate and less procyclical credit capital requirement forecast of U.S. commercial banking system under the regulatory framework. The approach conducts rolling window estimations together with back-tests and procyclicality checks for various sizes of sample windows and portfolio aggregation methods. The empirical results first show that capital requirement forecasts from shorter-term samples are more adequate but more procyclical compared to those from longer-term samples. Second, the forecasts based on stand-alone method are more adequate than those taking diversification into account. Third, tail dependence is inevitable for diversification methods to satisfy the adequacy. Finally, based on these findings, the sample of two business cycles, twice that of the Basel Committee’s minimum requirement of the historical observation period for internal rating grade, provides micro-prudentially the most adequate and macro-prudentially less procyclical credit capital forecasts in the U.S. commercial banking system.
Journal: Applied Economics
Pages: 5337-5353
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1914317
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1914317
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Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5337-5353
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Michela Dickson
Author-X-Name-First: Maria Michela
Author-X-Name-Last: Dickson
Author-Name: Giuseppe Espa
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Espa
Author-Name: Roberto Gabriele
Author-X-Name-First: Roberto
Author-X-Name-Last: Gabriele
Author-Name: Andrea Mazzitelli
Author-X-Name-First: Andrea
Author-X-Name-Last: Mazzitelli
Title: Small businesses and the effects on the growth of formal collaboration agreements: additional insights and policy implications
Abstract:
The paper studies the impact of formal collaboration agreements (FCA) on firms’ growth in Italy. To conduct a proper evaluation exercise, we started building a novel database of Italian firms where networked firms in 2012 (treated units) are matched with firms that did not subscribe to a formal network agreement (controls units) but possess similar observable characteristics. Then we use difference-in-differences regression models in which we employ time lags in the relationships between objective variables and control ones. We show that FCAs have a positive effect and can be interpreted as a valid means to reduce the cognitive distance from the market of firms. Moreover, the effect is mainly due to a defensive strategy. The effect is stronger for those firms that do not exploit other proximity types, namely geographical and organizational. Finally, structural characteristics play a role: younger and smaller firms avoid a ‘size contraction’ signing an FCA.
Journal: Applied Economics
Pages: 5397-5414
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922595
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922595
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Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5397-5414
Template-Type: ReDIF-Article 1.0
Author-Name: David Enck
Author-X-Name-First: David
Author-X-Name-Last: Enck
Author-Name: Mario Beruvides
Author-X-Name-First: Mario
Author-X-Name-Last: Beruvides
Author-Name: Víctor G. Tercero-Gómez
Author-X-Name-First: Víctor G.
Author-X-Name-Last: Tercero-Gómez
Author-Name: Alvaro E. Cordero-Franco
Author-X-Name-First: Alvaro E.
Author-X-Name-Last: Cordero-Franco
Title: Using statistical process monitoring to identify us business cycle change points and turning points
Abstract:
The Business Cycle paradigm of Mitchell and Burns has evolved from their original goal of understanding the entire economic process to the binary identification of growth and recessionary Turning Points. We propose a new paradigm for modelling the Business Cycle based on the Statistical Process Monitoring technique of Self-Starting Cumulative Sum (SSCUSUM) control charts. The SSCUSUM charts provide continuous characterization of aggregate economic activity through the identification of changes in the mean or standard deviation of economic indicators. A case study is conducted using real GDP % growth between 1965 and 2020 which shows that SSCUSUM charts: identify periods of steady state performance with statistically differentiable means and/or standard deviations, reliably reproduce the National Bureau of Economic Research Business Cycle Turning Points, identify patterns of economic activity leading up to and away from recessions, and identify twice the information on economic performance as the current bivariate approach. Over the study period, the SSCUSUM method identifies 42 changes in the mean or standard deviation of real GDP % growth, while the NBER TPs identify 8 peaks and 7 troughs.
Journal: Applied Economics
Pages: 5319-5336
Issue: 46
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1908514
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1908514
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Handle: RePEc:taf:applec:v:53:y:2021:i:46:p:5319-5336
Template-Type: ReDIF-Article 1.0
Author-Name: Zhiyong Cheng
Author-X-Name-First: Zhiyong
Author-X-Name-Last: Cheng
Author-Name: Jun Deng
Author-X-Name-First: Jun
Author-X-Name-Last: Deng
Author-Name: Tianyi Wang
Author-X-Name-First: Tianyi
Author-X-Name-Last: Wang
Author-Name: Mei Yu
Author-X-Name-First: Mei
Author-X-Name-Last: Yu
Title: Liquidation, leverage and optimal margin in bitcoin futures markets
Abstract:
Using the generalized extreme value theory to characterize tail distributions, we address liquidation, leverage and optimal margins for bitcoin long and short futures positions. The empirical analysis of perpetual bitcoin futures on BitMEX shows that (1) daily forced liquidations to outstanding futures are substantial at 3.51% and 1.89% for long and short; (2) investors got forced liquidation do trade aggressively with average leverage of 60X; and (3) exchanges should elevate current 1% margin requirement to 33% (3X leverage) for long and 20% (5X leverage) for short to reduce the daily margin call probability to 1%. Our results further suggest that normality assumption on return significantly underestimates optimal margins. Policy implications are also discussed.
Journal: Applied Economics
Pages: 5415-5428
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1922597
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922597
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Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5415-5428
Template-Type: ReDIF-Article 1.0
Author-Name: Hongyun Zheng
Author-X-Name-First: Hongyun
Author-X-Name-Last: Zheng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Xiaoshi Zhou
Author-X-Name-First: Xiaoshi
Author-X-Name-Last: Zhou
Title: Renting-in cropland, machinery use intensity, and land productivity in rural China
Abstract:
This study examines the impacts of renting-in cropland on machinery use intensity, utilizing an innovative endogenous-treatment Poisson regression (ETPR) model and survey data from wheat farmers in China. We also analyse how machinery use intensity affects land productivity, reflected by wheat yields and net returns, using a two-stage residual inclusion (2SRI) model. Unlike previous studies that consider general machinery use, this study considers self-owned machinery use intensity and purchased machinery service use intensity. The ETPR model results reveal that renting-in cropland significantly increases self-owned machinery use intensity. However, it has a negative and insignificant impact on purchased machinery service use intensity. The 2SRI model estimates show that increasing self-owned machinery use intensity and purchased machinery service use intensity significantly increases wheat yields and net returns. Our findings suggest that it is essential to take stakeholders’ land transfer status into account when designing policies to promote agricultural mechanization and enhance land productivity.
Journal: Applied Economics
Pages: 5503-5517
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923642
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923642
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Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5503-5517
Template-Type: ReDIF-Article 1.0
Author-Name: Fanzheng Yang
Author-X-Name-First: Fanzheng
Author-X-Name-Last: Yang
Author-Name: Weiwei Weng
Author-X-Name-First: Weiwei
Author-X-Name-Last: Weng
Title: Are only-children difficult team members?
Abstract:
The ever-increasingly complex economic activities across all industries have rendered teamwork a ubiquitous feature of the modern economy. Selecting the right employees, however, is conceived to be an ever more challenging task in the presence of an increasing number of adult only- children, who are widely perceived to be spoilt, self-centred and thus with weak team spirit. Our experimental study reassesses such negative stereotype by investigating only children’s participation willingness and their commitment to a group effort. Only children are found to contribute as much as their counterparts with siblings to the group effort although with slightly weaker willingness to join. Furthermore, the provision of peer information about relative performance is found to be significantly more effective in incentivizing only children than non-only children on both their willingness to participate in teamwork and their contribution to a group effort. Together, our findings suggest that only children can outperform their counterparts with siblings in teamwork as the uncertainty of team productivity is reduced by the introduction of feedback information.
Journal: Applied Economics
Pages: 5462-5476
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923637
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923637
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Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5462-5476
Template-Type: ReDIF-Article 1.0
Author-Name: Sanghyun Hwang
Author-X-Name-First: Sanghyun
Author-X-Name-Last: Hwang
Author-Name: Kadir Nagac
Author-X-Name-First: Kadir
Author-X-Name-Last: Nagac
Title: Religiosity and Tax Compliance: Evidence from U.S. Counties
Abstract:
The intention of this paper is to analyse religiosity as a factor that potentially affects tax compliance. Studies in the 1990s have shown that the puzzle of tax compliance is ‘why so many individuals pay their taxes’ and not ‘why people evade taxes.’ It has been noted that compliance cannot be entirely explained by the level of enforcement. Countries set the levels of audit and penalty so low that most individuals would evade taxes if they were rational, because it is unlikely that cheaters will be caught and penalized. Nevertheless, a high degree of compliance is observed. Therefore, studies that analyse a variety of factors other than detection and punishment are need. Religiosity can play an important role in determining one’s tax compliance decision. We use religious adherence data from the American Religious Data Archive and measure tax compliance as a discrepancy in reported income between Internal Revenue Service and Census data to analyse independent effects of church adherence rates on tax compliance in the United States at the county level. To our knowledge, this paper is the first study that analyzes the effect of religiosity on actual tax compliance behaviour.
Journal: Applied Economics
Pages: 5477-5489
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923638
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923638
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Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5477-5489
Template-Type: ReDIF-Article 1.0
Author-Name: Noam Tanner
Author-X-Name-First: Noam
Author-X-Name-Last: Tanner
Author-Name: Danielle Zanzalari
Author-X-Name-First: Danielle
Author-X-Name-Last: Zanzalari
Author-Name: Mark Manion
Author-X-Name-First: Mark
Author-X-Name-Last: Manion
Author-Name: Eric Haavind-Berman
Author-X-Name-First: Eric
Author-X-Name-Last: Haavind-Berman
Title: Demand elasticity for deposit services at U.S. retail banks in high and low rate environments
Abstract:
Using techniques from industrial organization, we capture the sensitivity of deposit balances to own and competitor pricing by estimating demand functions in U.S. retail deposit markets. The demand functions are used to compute elasticities of demand for bank deposits in order to study the relative importance of deposit rates over different interest rate environments. We find that the magnitudes of own- and cross-price elasticities are higher in high rate periods (when the federal funds rate is above 2%) than in low rate periods. We also compare different sized firms and find that smaller firms’ elasticities are more sensitive to the interest rate cycle.
Journal: Applied Economics
Pages: 5448-5461
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923636
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923636
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Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5448-5461
Template-Type: ReDIF-Article 1.0
Author-Name: Liping Zou
Author-X-Name-First: Liping
Author-X-Name-Last: Zou
Author-Name: Anne De Bruin
Author-X-Name-First: Anne
Author-X-Name-Last: De Bruin
Author-Name: Ji Wu
Author-X-Name-First: Ji
Author-X-Name-Last: Wu
Author-Name: Yue Yuan
Author-X-Name-First: Yue
Author-X-Name-Last: Yuan
Title: Art for art’s sake? An exploration of the Chinese art market
Abstract:
We investigate the price impact and returns for 165,847 lots sold from 533 artists executed on Chinese painting and calligraphy over the period of 2000–2017. We document an annual return of 10.67% for our sample artworks, with certain attributes carrying greater price impacts, including authenticity, mounting, time of creation, the month of sales, and the auction houses. Our results also reveal two art market booms, with the first peak in 2005, subsequently reaching the record peak in 2011. In addition, compared with other investment assets, Chinese painting and calligraphy yield a relatively higher return compared to other investment assets. The artwork has a relatively lower correlation with other assets, suggesting potential diversification benefits. The average holding period of Chinese painting and calligraphy is about three years, in stark contrast to an average 10-year turnover of art in Western countries. This provides strong evidence that excessive speculative activities exist in the Chinese art market. Thus, art market participants in China need to be aware of the risk associated with art investments, as art is not necessarily for art’s sake.
Journal: Applied Economics
Pages: 5429-5447
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923635
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923635
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Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5429-5447
Template-Type: ReDIF-Article 1.0
Author-Name: Tian-Tian Zhu
Author-X-Name-First: Tian-Tian
Author-X-Name-Last: Zhu
Author-Name: Hua-Rong Peng
Author-X-Name-First: Hua-Rong
Author-X-Name-Last: Peng
Author-Name: Yue-Jun Zhang
Author-X-Name-First: Yue-Jun
Author-X-Name-Last: Zhang
Author-Name: Jing-Yue Liu
Author-X-Name-First: Jing-Yue
Author-X-Name-Last: Liu
Title: Does higher education development facilitate carbon emissions reduction in China
Abstract:
Based on the data of 31 provinces in China during 2004–2015 and the models of panel threshold regression and panel quantile regression, this paper investigates the impact of China’s higher education on regional carbon emissions. The results indicate that there exists threshold effect of both China’s higher education scale and quality on regional carbon emissions per capita. Specifically, in terms of higher education scale, its further progress may facilitate the positive effect on carbon emissions per capita when technology is above threshold. As for higher education quality, its further growth may moderate the positive effect on carbon emissions per capita when income exceeds threshold; it also can promote its constrained effect on carbon emissions per capita when exceeding the technology threshold; and the continuous improvement of higher education quality may help to reduce carbon emissions per capita. Besides, the positive impact of higher education scale on carbon emissions per capita appears smaller in regions with more carbon emissions per capita; meanwhile, only in the regions with larger carbon emissions per capita, may higher education quality promote carbon emissions per capita, while the curbing impact of technology level is relatively constant among different regions with various carbon emissions.
Journal: Applied Economics
Pages: 5490-5502
Issue: 47
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1923641
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923641
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Handle: RePEc:taf:applec:v:53:y:2021:i:47:p:5490-5502
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Chi Yin
Author-X-Name-First: Chi
Author-X-Name-Last: Yin
Author-Name: Min-Rui Choo
Author-X-Name-First: Min-Rui
Author-X-Name-Last: Choo
Title: Do firm characteristics affect debt capacity? Evidence in CEO succession
Abstract:
Should firms decrease or increase their debt capacity after professional CEO succession? Examining a sample of all publicly traded firms from 1991 to 2016 in Taiwan, this research finds that firms with professional CEO successors tend to raise less debt and consider the succession of professional managers to be more conservative because they are afraid of being monitored more severely. From the perspectives of firms’ characteristics, those with professional CEO successors and high cash holdings and investment levels are more likely to increase their debt capacity, while those of a larger size and higher post-succession profitability volatility decrease their ability at raising debt. Finally, we hand-collect data and develop a novel method to identify the real founders and reconfirm our empirical evidence. Our findings present financial implications for boards of directors which they can evaluate firms’ cash holdings, investment level, firm size, and profit volatility before deciding on whether to name a CEO successor to take over their firms.
Journal: Applied Economics
Pages: 5567-5583
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1925626
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925626
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Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5567-5583
Template-Type: ReDIF-Article 1.0
Author-Name: Peng Nie
Author-X-Name-First: Peng
Author-X-Name-Last: Nie
Author-Name: Qing Li
Author-X-Name-First: Qing
Author-X-Name-Last: Li
Author-Name: Alan A. Cohen
Author-X-Name-First: Alan A.
Author-X-Name-Last: Cohen
Author-Name: Alfonso Sousa-Poza
Author-X-Name-First: Alfonso
Author-X-Name-Last: Sousa-Poza
Title: In search of China’s income-health gradient: a biomarker-based analysis
Abstract:
Using data from the 1991–2009 China Health and Nutrition Survey, this study investigates China’s income-health gradient by analysing the effect of both current and long-term household income on 22 blood-based biomarkers, 4 used as individual variables and all 22 assessed as a composite. We employ estimation approaches that allow for analysis ‘beyond the mean’ and accounting for individual-specific unobserved heterogeneity. After applying a two-step residual inclusion estimator, we find limited evidence of an income-health gradient irrespective of whether the income measure is current or long term. Because risky behaviour may attenuate income’s positive effects on health, we also analyse the associations between income and such health-influencing factors as alcohol consumption, smoking, diet, physical activity, and dietary knowledge. Although we find that higher incomes go hand-in-hand with some of these factors (in particular, a higher number of cigarettes smoked per day), they also promote poorer diets. However, the fact that these effects are small, dependent on income measure, and susceptible to reporting biases makes it unlikely that they are attenuating income’s potentially positive effects on health. Our findings highlight the importance of considering more accurate measures of health in assessing income-health gradients in future research.
Journal: Applied Economics
Pages: 5599-5618
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927962
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927962
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Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5599-5618
Template-Type: ReDIF-Article 1.0
Author-Name: Khalid Ahmed
Author-X-Name-First: Khalid
Author-X-Name-Last: Ahmed
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Title: Electricity consumption in Australia: the role of clean energy in reducing CO2 emissions
Abstract:
Electricity consumption is the primary source of carbon dioxide (CO2) emissions in Australia. Hence, this research study aims to analyse the role of clean energy consumption on CO2 emissions and electricity consumption in Australia by making use of yearly data, 1980–2014 and a battery of time series econometric techniques. The autoregressive distributed lag (ARDL) method is employed to investigate the short- and long-run estimates, while the Bayer and Hanck (2013) test is used to examine the cointegration relationship among the variables. The results from the ARDL technique show that a 1% increase in clean energy consumption reduces per capita CO2 emissions and per capita electricity consumption by 5.50% and 1.19%, respectively in the long-run. The findings also confirm a significant long-run association among the variables. As such, it is emphasized that the government should take further initiatives towards a wider deployment of clean energy use, along with sustainable urbanization to reduce per capita electricity consumption and CO2 emissions in Australia.
Journal: Applied Economics
Pages: 5535-5548
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1925080
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925080
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Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5535-5548
Template-Type: ReDIF-Article 1.0
Author-Name: Dominik Schreyer
Author-X-Name-First: Dominik
Author-X-Name-Last: Schreyer
Author-Name: Benno Torgler
Author-X-Name-First: Benno
Author-X-Name-Last: Torgler
Title: Predicting season ticket holder no-show behaviour: more nuanced evidence from Switzerland
Abstract:
In this article, we contribute to the emerging literature on the potential determinants of football spectator no-show behaviour by analysing disaggregated data capturing season ticket holder (STH) behaviour outside the German market for the first time. Intriguingly, our empirical analysis of a unique panel dataset – containing distinct admission decisions made by 8,734 STHs of an established Swiss Super League club on 72 consecutive matchdays between 2013 and 2016 – suggests that the antecedents of such no-show behaviour might be contextual, despite some notable similarities across markets. For instance, although we observe a robust role of both a STH’s emerging no-show habits and his/her geographical distance to the stadium in predicting spectator no-show behaviour that is in line with previous research, we also note a more nuanced, i.e. non-linear, relationship between a STH’s age and the tendency to omit attendance on matchday. Here, using three-dimensional contour plots to represent potential interactions with age graphically, we also observe that STHs in the age cohort around 35 to 65 are more affected by barriers in the form of distance to the place of residence or temperature compared to people of retirement age, for whom there is a very robust pattern of habit.
Journal: Applied Economics
Pages: 5549-5566
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1925081
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925081
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Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5549-5566
Template-Type: ReDIF-Article 1.0
Author-Name: Wanling Zhong
Author-X-Name-First: Wanling
Author-X-Name-Last: Zhong
Author-Name: Yunjie Fu
Author-X-Name-First: Yunjie
Author-X-Name-Last: Fu
Author-Name: Wei Ma
Author-X-Name-First: Wei
Author-X-Name-Last: Ma
Title: A Revisit on the Validity of the Uncovered Interest Rate Parity-Evidence from Time-Varying Parameter Models
Abstract:
This paper develops two time-varying parameter uncovered interest parity (TVP-UIP) models and studies their validity in both developed and emerging countries. Compared to the traditional models, TVP-UIP models can successfully capture dynamic relationships and help to explain the UIP puzzle. Empirical results show that the coefficients vary substantially over time and the UIP relationship can be regarded as a dynamic equilibrium process especially in emerging economies. The UIP hypothesis holds in several periods and can be significantly affected by specific major events, such as the financial crises and the recovery policies in response to it, or the US monetary policy changes. The time-varying risk premium attracts great concern in the literature but only plays a limited role in this case. Moreover, the failure of UIP in some periods can be attributable to the persistence inherent in the data, which leads to a long-lasting re-establishment of the UIP relationship after a shock.
Journal: Applied Economics
Pages: 5518-5534
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1924353
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1924353
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Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5518-5534
Template-Type: ReDIF-Article 1.0
Author-Name: Zhen Huang
Author-X-Name-First: Zhen
Author-X-Name-Last: Huang
Author-Name: Weiwei Gao
Author-X-Name-First: Weiwei
Author-X-Name-Last: Gao
Title: Stock market liberalization and firm litigation risk——A quasi-natural experiment based on the Shanghai-Hong Kong Stock Connect policy
Abstract:
Taking the openness of the Shanghai-Hong Kong Stock Connect policy as an exogenous shock, this paper examines how the stock market liberalization affects litigation risks of underlying stock firms and its influencing mechanisms. We use a difference-in-differences (DID) approach to analyse the sample of A-share firms listed on the Shanghai Stock Exchange, and find that the stock market liberalization can better curb litigation risk of the underlying stock firms (i.e. the firms listed on the Shanghai Stock Exchange that can also be traded in the Hong Kong Stock Exchange) than that of the non-underlying stock firms. Further, we provide evidence that the corporate governance mechanism rather than information transmission is the main channel through which stock market liberalization reduces litigation risk of the underlying stock firms. This paper emphasizes the unique role and spillover effects of the stock market liberalization, contributing to the literature on law and finance and the literature on the stock market liberalization.
Journal: Applied Economics
Pages: 5619-5642
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927963
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927963
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Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5619-5642
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Huck
Author-X-Name-First: Nicolas
Author-X-Name-Last: Huck
Author-Name: Régis Y. Chenavaz
Author-X-Name-First: Régis Y.
Author-X-Name-Last: Chenavaz
Author-Name: Stanko Dimitrov
Author-X-Name-First: Stanko
Author-X-Name-Last: Dimitrov
Title: Psychological prices at retail gasoline stations: the policies of 0-, 5-, and 9-ending prices
Abstract:
Psychological prices are known to impact consumer behaviour and to depend on retailers’ characteristics. Less understood is last digit pricing, especially in the context of retail gasoline stations. We study price endings in the French gasoline market with 11,471 gas stations and 4,775,300 prices for oil companies, supermarkets, and independent retailers during five years. Raw data suggest that 0-ending prices are more expensive. Yet, these last digit effects do not survive careful scrutiny focusing on the individual behaviour/distribution of each gas station. Plus, 9-, 0-, and 5-ending prices are over-represented. Our evidence better informs administrative authorities investigating market irregularities and consumers interested in better deals.
Journal: Applied Economics
Pages: 5584-5598
Issue: 48
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1925627
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925627
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Handle: RePEc:taf:applec:v:53:y:2021:i:48:p:5584-5598
Template-Type: ReDIF-Article 1.0
Author-Name: Marta Escalonilla
Author-X-Name-First: Marta
Author-X-Name-Last: Escalonilla
Author-Name: Begoña Cueto
Author-X-Name-First: Begoña
Author-X-Name-Last: Cueto
Author-Name: Maria Jose Perez Villadóniga
Author-X-Name-First: Maria Jose
Author-X-Name-Last: Perez Villadóniga
Title: Long-term effects on youth career of entering the labour market during the Great Recession
Abstract:
In this article, we analyse the long-term effects on youth professional careers of entering the Spanish labour market under adverse economic conditions, using administrative data from the Continuous Sample of Working Histories (CSWH) for the period 2007–2017. We follow a cohort approach and estimate a Weighted OLS specification. Results show that cohorts entering the labour market in a recession face long-term consequences both in terms of wages and employment. For less-educated individuals, we find that the main effect is via employment, even blocking their entry into the labour market. For high-educated individuals, instead, we obtain a long-term penalty in terms of wages as well as a reduction in the days worked. The main contribution of this paper is to provide evidence of the long run impact on youth careers of the Great Recession in a segmented labour market.
Journal: Applied Economics
Pages: 5643-5657
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927966
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927966
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Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5643-5657
Template-Type: ReDIF-Article 1.0
Author-Name: Dwi Budi Santoso
Author-X-Name-First: Dwi Budi
Author-X-Name-Last: Santoso
Title: The impact of industrial development zones designation on the convergence of economic growth in East Java
Abstract:
Since 2008, the strategy to concentrate industrial areas in eight regions in East Java has rapidly accelerated economic growth. However, this strategy also increases regional income disparity. Therefore in the last 2019, Indonesian government design a policy through Presidential Decree No.80/2019 to develop additional industrial centres of East Java into sixteen regions. The main objectives of the policy are to improve regional disparities and to maintain high economic growth. Based on this condition, this study aims to evaluate whether this policy can reduce regional income disparities in East Java. This study modifies the Barro-Martin convergence model to assess the new policy. The model is estimated using panel data of 38 regions in East Java from 2010–2019. There are two results in this study; first, the industrial sector can accelerate economic growth; and second, the additional industrial centres policy tends to improve regional income disparity in East Java.
Journal: Applied Economics
Pages: 5731-5737
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931002
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931002
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Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5731-5737
Template-Type: ReDIF-Article 1.0
Author-Name: Ana Paula Matias Gama
Author-X-Name-First: Ana Paula Matias
Author-X-Name-Last: Gama
Author-Name: Ricardo Emanuel-Correia
Author-X-Name-First: Ricardo
Author-X-Name-Last: Emanuel-Correia
Author-Name: Mário Augusto
Author-X-Name-First: Mário
Author-X-Name-Last: Augusto
Author-Name: Fábio Duarte
Author-X-Name-First: Fábio
Author-X-Name-Last: Duarte
Title: Bringing modernity to prosocial crowdfunding’s campaigns: an empirical examination of the transition to modern sectors
Abstract:
This study addresses the successive calls to better understand the contexts of crowdfunding as well as the interplay between social and financial factors in driving lender decisions by deploying economic development theory inspired on the two-sector model. Making recourse to the leading prosocial crowdfunding platform KIVA, this study examines the impact of the business-loan purpose (traditional vs modern) on the success of fundraising campaigns. The results indicate how modern-sector business loan campaigns lead to faster funding from crowdfunding campaigns. Furthermore, when directed towards modern sectors, large loans emerge as more appealing to lenders, indicating how large loans go to financing high-return projects. Female microentrepreneurs gain an advantage over men in both the traditional and modern sectors. However, the comparative advantage of female microentrepreneurs becomes less pronounced among modern-related loan campaigns. Overall, the findings support how the global crowdfunded microfinance ecosystem boosts the transition of poor microentrepreneurs to a modern economy and thereby avoiding development traps, and thus also providing theoretical insights into predicting prosocial lending decisions regarding sectoral choices.
Journal: Applied Economics
Pages: 5677-5694
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927968
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927968
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Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5677-5694
Template-Type: ReDIF-Article 1.0
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: James William Saunoris
Author-X-Name-First: James William
Author-X-Name-Last: Saunoris
Title: Determinants of homelessness in the U.S.: new hypotheses and evidence
Abstract:
This study seeks to provide new insights into factors that influence homelessness in the U.S. by empirically investigating two heretofore effectively unexplored hypotheses as they relate to homelessness. The first hypothesis is that the greater the overall degree of entrepreneurial activity in a given environment, the lower the degree of homelessness. The second hypothesis is that homelessness is a decreasing function of the overall degree of labour market freedom.Panel VAR, Granger causality, and Cholesky forecast-error variance decomposition analyses are undertaken. Overall, strong, empirical support for both hypotheses is obtained. Accordingly, the homelessness rate is found to be a decreasing function of both the overall degree of entrepreneurial activity in a given state and the overall degree of labour market freedom in that state. Hence, it is argued that policies promoting entrepreneurial activity and labour freedom potentially can be useful tools in helping to diminish the degree of homelessness in the U.S.
Journal: Applied Economics
Pages: 5695-5709
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927970
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927970
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Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5695-5709
Template-Type: ReDIF-Article 1.0
Author-Name: Pavel Ciaian
Author-X-Name-First: Pavel
Author-X-Name-Last: Ciaian
Author-Name: d’Artis Kancs
Author-X-Name-First: d’Artis
Author-X-Name-Last: Kancs
Author-Name: Miroslava Rajcaniova
Author-X-Name-First: Miroslava
Author-X-Name-Last: Rajcaniova
Title: The economic dependency of bitcoin security
Abstract:
We studied the extent to which bitcoin blockchain security permanently depends on the underlying distribution of cryptocurrency market outcomes using daily blockchain and bitcoin data for 2014–2019 and employing the autoregressive-distributed lag (ARDL) approach. We tested three equilibrium hypotheses: (i) sensitivity of the bitcoin blockchain to mining reward, (ii) security outcomes of the bitcoin blockchain and the proof-of-work cost, and (iii) the speed of adjustment of the bitcoin blockchain security to deviations from the equilibrium path. Our results suggest that bitcoin price and mining rewards were intrinsically linked to bitcoin security outcomes.The bitcoin blockchain security’s dependency on mining costs was geographically differenced – it was more significant for the global mining leader China than for other world regions. Bitcoin blockchain security tended to revert relatively fast to its equilibrium security level after the input or output of price shocks.
Journal: Applied Economics
Pages: 5738-5755
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931003
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931003
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Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5738-5755
Template-Type: ReDIF-Article 1.0
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Kakali Kanjilal
Author-X-Name-First: Kakali
Author-X-Name-Last: Kanjilal
Author-Name: Sajal Ghosh
Author-X-Name-First: Sajal
Author-X-Name-Last: Ghosh
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Author-Name: Tareq Saeed
Author-X-Name-First: Tareq
Author-X-Name-Last: Saeed
Title: Rare earth and allied sectors in stock markets: extreme dependence of return and volatility
Abstract:
This study examines the dynamics of return and volatility connectedness between the rare earth stock index and the indexes of clean energy, consumer electronics, telecommunications, healthcare equipment, and aerospace & defence. Using daily data from 25 March 2010 to 25 August 2020, a quantile-based connectedness approach is applied to uncover both average and tail-based connectedness while considering the full sample period and the COVID-19 pandemic days. The results suggest that the interdependence among these indexes changes dramatically at the lower and upper quantiles, suggesting a strong influence of extreme market scenarios on both returns and volatility connectedness dynamics. Higher integration of sectoral indexes is observed during 2010–2012 and the COVID-19 pandemic period. Health care and telecommunication indexes have been consistent transmitters of return and volatility spillovers to other indexes during the full sample period. Consumer electronics and clean technology indexes switch their roles from a net receiver to a net transmitter during pandemic days. The rare earth remains on the recipient’s side consistently. The findings indicate that the ongoing U.S.–China trade embargo has not impacted the return and volatility dynamics of the five sectoral indexes superseding the demand-driven dynamics for rare earth.
Journal: Applied Economics
Pages: 5710-5730
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927971
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927971
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Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5710-5730
Template-Type: ReDIF-Article 1.0
Author-Name: Qing Li
Author-X-Name-First: Qing
Author-X-Name-Last: Li
Author-Name: Yanrui Wu
Author-X-Name-First: Yanrui
Author-X-Name-Last: Wu
Title: Organization capital, knowledge spillover and firm performance: evidence from chinese manufacturing sector
Abstract:
This study explores organization capital and its spillover effects among Chinese manufacturing firms. By linking patent data with China’s annual survey of industrial enterprises database, we examine technological proximity as one potential channel for organizational spillover but find weak evidence. This result is consistent with previous findings from developed countries. In contrast, organization capital is found to generate positive spillover in China when geographical proximity is considered. In other words, it is found that spillover from organization capital is likely among Chinese firms due to geographical proximity rather than technological proximity.
Journal: Applied Economics
Pages: 5658-5676
Issue: 49
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927967
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927967
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Handle: RePEc:taf:applec:v:53:y:2021:i:49:p:5658-5676
Template-Type: ReDIF-Article 1.0
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: Ytallo Brito
Author-X-Name-First: Ytallo
Author-X-Name-Last: Brito
Title: The link between public debt and investment: an empirical assessment from emerging markets
Abstract:
This paper provides empirical evidence of the relationship between public debt/GDP ratio and investment. Based on panel data analysis considering 24 emerging markets from 1996 to 2018, we investigate the effect of an increase in public debt on investment at three levels: aggregate, private sector, and public sector. Moreover, we consider the possibility of the global financial crisis of 2007–2008 (GFC) has changed the relationship between public debt and investment. We also assess the effect of a public debt/GDP ratio higher than the prudential level of 60% on investment. The findings indicate that an increase in the public debt/GDP ratio has a significant harmful effect on investment. In particular, we observe that after the GFC, the adverse effect of a higher public debt/GDP ratio on investment increased considerably. Moreover, our results show that the highest adverse effect of a rise in the public debt/GDP ratio is on the public sector investment.
Journal: Applied Economics
Pages: 5864-5876
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931008
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931008
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Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5864-5876
Template-Type: ReDIF-Article 1.0
Author-Name: Hyun Jin Jang
Author-X-Name-First: Hyun Jin
Author-X-Name-Last: Jang
Author-Name: Xiao Pan
Author-X-Name-First: Xiao
Author-X-Name-Last: Pan
Author-Name: Sumin Park
Author-X-Name-First: Sumin
Author-X-Name-Last: Park
Title: Measuring systemic risk with a dynamic copula-based approach
Abstract:
This study examines the extent of systemic risk embedded in the credit and equity markets using a conditional value-at-risk (CoVaR) measure. We implement a copula-based CoVaR approach with different perspectives of a dependence structure based on a generalized autoregressive score model. In parallel, we select the credit default swap spread and stock price data of five companies in the financial sector – American Express, BBVA, Goldman Sachs, Morgan Stanley, and Wells Fargo – from 2001 to 2013, and include data on the global financial crisis of 2007–2008. We then divide the data into three time periods: pre-crisis, during the crisis, and post-crisis. We conduct time-varying marginal modelling, and copula parameter estimation, and then compute CoVaR values with the best-fit copula model. Comparative empirical tests provide financial implications for systemic risk management.
Journal: Applied Economics
Pages: 5843-5863
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931007
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931007
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Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5843-5863
Template-Type: ReDIF-Article 1.0
Author-Name: Ufuk Gunes Bebek
Author-X-Name-First: Ufuk Gunes
Author-X-Name-Last: Bebek
Author-Name: Wentao Li
Author-X-Name-First: Wentao
Author-X-Name-Last: Li
Title: Structural breaks, reserve currency and balance of payments constrained growth: a test of Thirlwall’s Law in the UK (1950-2017)
Abstract:
We apply Thirlwall’s law (Thirlwall 1979) to estimate long run growth in the UK. In particular, we develop a new test allowing for potential structural breaks based on 2SLS to remedy potential weaknesses that existed in previous methods. Our results show the UK had different balance of payments positions over different time periods, and its growth has been constrained over the past two decades. We further elaborate on the pound’s changing role as a reserve currency and how this has affected the UK’s external constraint and growth.
Journal: Applied Economics
Pages: 5756-5771
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1927965
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927965
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Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5756-5771
Template-Type: ReDIF-Article 1.0
Author-Name: Yanan Zhang
Author-X-Name-First: Yanan
Author-X-Name-Last: Zhang
Author-Name: Bing Zhu
Author-X-Name-First: Bing
Author-X-Name-Last: Zhu
Title: Stock price contagion effects through investment banks
Abstract:
This paper investigates how stock market investors react to non-fraudulent firms that share the same investment bank with fraudulent companies. Using a Chinese sample from the period of 2003 to 2018, we find that firms penalized for IPO or M&A fraud induce stock price declines among non-fraudulent firms which share the same investment banks (non-fraudulent contagion firms). The results also show that stock price declines are more pronounced for low-quality investment banks, and investors impose larger penalties on stock prices when non-fraudulent client firms are of lower earnings quality, weaker corporate governance, and higher information asymmetry. Furthermore, we demonstrate that the non-fraudulent contagion firms are more likely to commit accounting fraud and exhibit inferior long-term post-IPO/post-M&A performance. Overall, the findings indicate an important stock price contagion effect occurring at the investment bank level.
Journal: Applied Economics
Pages: 5793-5811
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931004
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931004
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Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5793-5811
Template-Type: ReDIF-Article 1.0
Author-Name: Malick Fall
Author-X-Name-First: Malick
Author-X-Name-Last: Fall
Author-Name: Waël Louhichi
Author-X-Name-First: Waël
Author-X-Name-Last: Louhichi
Author-Name: Jean Laurent Viviani
Author-X-Name-First: Jean Laurent
Author-X-Name-Last: Viviani
Title: Forecasting the intra-day effective bid ask spread by combining density forecasts
Abstract:
The bid-ask spread refers to the tightness dimension of liquidity and can be used as a proxy for transaction costs. Despite the importance of the bid-ask spread in the financial literature, few studies have investigated its forecastability. We propose a new methodology to predict the bid ask spread by combining density forecasts of two types of models: Multiplicative Errors Models and ARMA-GARCH models. Our method is employed to predict the effective intra-day bid-ask spread series of all shares pertaining to the CAC40 index. Using a one-step-ahead out-of-sample framework, we resort on the Model Confidence Set procedure to classify models and we found that the proposed model appears to beat all the benchmark specifications.
Journal: Applied Economics
Pages: 5772-5792
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1929821
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1929821
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Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5772-5792
Template-Type: ReDIF-Article 1.0
Author-Name: Viswa Prasad Gada
Author-X-Name-First: Viswa Prasad
Author-X-Name-Last: Gada
Author-Name: Manish Popli
Author-X-Name-First: Manish
Author-X-Name-Last: Popli
Author-Name: Shavin Malhotra
Author-X-Name-First: Shavin
Author-X-Name-Last: Malhotra
Title: Time to complete the due diligence phase in mergers and acquisitions: impact of CEO psychological characteristics
Abstract:
The CEO is the chief decision-maker with regard to corporate strategy, and extant literature highlights how CEOs’ psychological characteristics inform firms’ risky strategic choices. In this article, we focus instead on how CEOs’ psychological characteristics might lead to risk-mitigation actions. Building on the regulatory focus theory, we investigate the impact of CEO’s prevention focus on the due diligence process in merger and acquisition (M&A) deals. Using a sample of 339 majority-stake completed M&A deals by public firms from the United Kingdom, we find that CEOs having a stronger prevention focus increases the time these firms take to complete their M&A deals. We also find that this effect is mitigated when firms acquire target firms in related industries.
Journal: Applied Economics
Pages: 5812-5825
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931005
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931005
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Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5812-5825
Template-Type: ReDIF-Article 1.0
Author-Name: Evrim Akdogu
Author-X-Name-First: Evrim
Author-X-Name-Last: Akdogu
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Title: The impact of debt covenants on earnings announcement returns
Abstract:
We study the impact of debt covenants on earnings announcement returns, using event-study methodology, by creating 10 covenant groups and a covenant index. We find that during bad news, whether it stems from a bad earnings surprise based on analyst forecasts or a negative average market reaction, both the index and most covenant groups display a significantly negative impact on announcement returns. For good news, particularly when the market reaction is positive on average, we also observe a significantly positive effect from some covenant groups, but not the index. The strongest impact on returns comes mostly from debt-related covenants such as leverage tests, cross-default clause and debt issue restrictions. Finally, we also show that regardless of firm characteristics, risk measures or exposure to information asymmetry, most covenants have a negative impact on announcement returns for all firms when the news is bad. For the full sample and the good news subsample, however, we find that small, risky firms with high information asymmetry issues are rewarded by the market and vice versa.
Journal: Applied Economics
Pages: 5826-5842
Issue: 50
Volume: 53
Year: 2021
Month: 10
X-DOI: 10.1080/00036846.2021.1931006
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931006
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Handle: RePEc:taf:applec:v:53:y:2021:i:50:p:5826-5842
Template-Type: ReDIF-Article 1.0
Author-Name: Christophe Schalck
Author-X-Name-First: Christophe
Author-X-Name-Last: Schalck
Author-Name: Meryem Yankol-Schalck
Author-X-Name-First: Meryem
Author-X-Name-Last: Yankol-Schalck
Title: Predicting French SME failures: new evidence from machine learning techniques
Abstract:
The aim of this study is to provide new insights into French small and medium-sized enterprises (SME) failure prediction using a unique database of French SMEs over the 2012–2018 period including both financial and nonfinancial variables. We also include text variables related to the type of activity. We compare the predictive performance of three estimation methods: a dynamic Probit model, logistic Lasso regression, and XGBoost algorithm. The results show that the XGBoost algorithm has the highest performance in predicting business failure from a broad dataset. We use SHAP values to interpret the results and identify the main factors of failure. Our analysis shows that both financial and nonfinancial variables are failure factors. Our results confirm the role of financial variables in predicting business failure, while self-employment is the factor that most strongly increases the probability of failure. The size of the SME is also a business failure factor. Our results show that a number of nonfinancial variables, such as localization and economic conditions, are drivers of SME failure. The results also show that certain activities are associated with a prediction of lower failure probability while some activities are associated with a prediction of higher failure.
Journal: Applied Economics
Pages: 5948-5963
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934389
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934389
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Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5948-5963
Template-Type: ReDIF-Article 1.0
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Author-Name: Christopher King
Author-X-Name-First: Christopher
Author-X-Name-Last: King
Author-Name: Jason Nassios
Author-X-Name-First: Jason
Author-X-Name-Last: Nassios
Author-Name: Nhi Hoang Tran
Author-X-Name-First: Nhi Hoang
Author-X-Name-Last: Tran
Title: The impact of GST reform on Australia’s state and territory economies
Abstract:
We use a multi-regional general equilibrium model and a multi-regional microsimulation model to explore the economic consequences of a Goods and Services Tax (GST) rate rise and broadening of the GST base for Australia’s eight states and territories. We identify the states and territories adversely affected by GST change, and explain the regional structural factors responsible for differences in regional impacts. These findings have policy relevance in the context of Australia’s GST framework, which requires unanimous state and territory support for GST change.
Journal: Applied Economics
Pages: 5929-5947
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934388
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934388
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Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5929-5947
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Crosby
Author-X-Name-First: Paul
Author-X-Name-Last: Crosby
Title: When does managerial experience matter? Evidence from Major League Baseball
Abstract:
In the world of professional sports, a manager’s ability to influence team success is often questioned. This study exploits a unique feature of Major League Baseball (MLB), which has different rules of play depending on what league a team is in, to examine whether managerial impact is driven by the level of responsibility they are given over in-game decision making. Using 47 seasons of MLB data, we find evidence that the development of human capital in the form of on-the-job experience and exposure to prior success is only beneficial when managers are employed in more complex decision-making environments. The results of this study have ramifications on the hiring decisions, both in terms of personnel choice and remuneration, of professional sports organizations.
Journal: Applied Economics
Pages: 5877-5882
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1931009
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931009
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Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5877-5882
Template-Type: ReDIF-Article 1.0
Author-Name: Lu Guo
Author-X-Name-First: Lu
Author-X-Name-Last: Guo
Author-Name: Zhimin Dai
Author-X-Name-First: Zhimin
Author-X-Name-Last: Dai
Title: Study of total factor productivity on China’s science and technology service industry: provincial efficiency comparatively using 2010-2019 data
Abstract:
This research describes the industries’ development and efficiency distribution, investigates the process of industry efficiency influence of these industries’ agglomeration effect on total factor productivity (TFP) change based China’s science and technology service industries from 2010 to 2019 data. We analyse the main factors influencing TFP change and the stage effect difference of significant factors through using linear and non-linear regression equations by construct the panel regression equations. The empirical results show:1) the overall trend of science and technology service industry agglomeration in China is declining; 2) Provinces and regions exhibits a trend of respective agglomeration within the economic belt; 3) the different location entropies of the five regions lead to obvious differences in the development stages; 4) the influences of technology progress and foreign trade on TFP efficiency changes are generally significant; 5)Science and technology service industry have improved industrial efficiency in the central and western regions and made it easier for these regions to break through bottlenecks. We conclude that industrial efficiency improvements should be based on technology upgrading and expansion in infrastructure allocation, also offering more realistic solutions to promote system construction and interregional policy coordination.
Journal: Applied Economics
Pages: 5917-5928
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1931658
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931658
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Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5917-5928
Template-Type: ReDIF-Article 1.0
Author-Name: Jennifer Brodmann
Author-X-Name-First: Jennifer
Author-X-Name-Last: Brodmann
Author-Name: Charles Danso
Author-X-Name-First: Charles
Author-X-Name-Last: Danso
Author-Name: Surendranath Rakesh Jory
Author-X-Name-First: Surendranath Rakesh
Author-X-Name-Last: Jory
Author-Name: Thanh Ngo
Author-X-Name-First: Thanh
Author-X-Name-Last: Ngo
Title: The value added by private equity in mergers and acquisitions by financial institutions
Abstract:
We compare and contrast (i) mergers and acquisitions (M&As) by financial institutions (FIs) that had the involvement of one or more private equity firms (PE) with (ii) acquisitions with no private equity involvement. We find that the M&A announcement abnormal stock returns are higher for acquisitions with- than without private equity involvement. Likewise, the post-announcement long-term annual stock returns are higher for deals with PE involvement. These deals also produce higher operating performance, and their stocks exhibit less volatility in the months following the announcement after controlling for a host of confounding variables. Our results are robust to year fixed effects, industry (i.e. business line) effects, and self-selection bias.
Journal: Applied Economics
Pages: 5898-5916
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1931657
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931657
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Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5898-5916
Template-Type: ReDIF-Article 1.0
Author-Name: Babatunde Buraimo
Author-X-Name-First: Babatunde
Author-X-Name-Last: Buraimo
Author-Name: Neil Coster
Author-X-Name-First: Neil
Author-X-Name-Last: Coster
Author-Name: David Forrest
Author-X-Name-First: David
Author-X-Name-Last: Forrest
Title: Spectator demand for the sport of kings
Abstract:
We estimate a model capturing influences on attendance in British horseracing. A fixed effects regression is employed in analysing data containing information on attendances at 23,999 race-days (2001–2018). The patterns of demand are similar to those found for other sports, for example, attendance is higher at weekends and in warmer months and is sensitive to the quality of the racing. Further, attendance falls when races have to compete with some televised sport of national significance. Controlling for a large number of characteristics, the pattern of results on year dummies implies considerable decline in public interest in attending race-days over the period. The pronounced negative trend in attendance suggests a need for modernizing the sport including attention to animal welfare issues, which might partly account for apparently growing public disillusion.
Journal: Applied Economics
Pages: 5883-5897
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1931010
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1931010
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Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5883-5897
Template-Type: ReDIF-Article 1.0
Author-Name: Shiyu Jiang
Author-X-Name-First: Shiyu
Author-X-Name-Last: Jiang
Title: A study on the discrepancies between immigrants working in the regular and the ethnic enclave sectors in the Canadian Labor market
Abstract:
This paper studies performance differences between immigrants working in the regular Canadian labour market and those in the ethnic enclave sector of the economy. First, by studying the effects of education and race on the weekly wage earnings, I find that the returns to education are greater and being a visible minority carries less of a wage penalty for immigrants working in the regular sector compared with those in the enclave sector. Moreover, taking the AMEs (Average Marginal Effects) studies, I document different effects of education and race on both earnings and job segment for these two types of immigrants and propose an explanation. After this, I compute task supply and wage gaps between different types of immigrants in three census years to show differences in assimilation by immigration cohort. Finally, I use regression models to study immigrants’ task supply and weekly wages so that we can have a fuller view of the differences in performance between immigrants working in the regular and enclave sectors. I also use these models to analyse differences between immigrants and natives in Canada.
Journal: Applied Economics
Pages: 5964-5987
Issue: 51
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934390
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934390
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Handle: RePEc:taf:applec:v:53:y:2021:i:51:p:5964-5987
Template-Type: ReDIF-Article 1.0
Author-Name: Sawssen Araichi
Author-X-Name-First: Sawssen
Author-X-Name-Last: Araichi
Author-Name: Tarifa Almulhim
Author-X-Name-First: Tarifa
Author-X-Name-Last: Almulhim
Title: Vine copulas and fuzzy inference to evaluate the solvency capital requirement of multivariate dependent risks
Abstract:
A capital requirement should be established for insurance companies at a level that allows them to fulfil their engagements towards policyholders. As such, evaluating an accurate amount of reserve and capital within different lines of business is a fundamental procedure for any company. However, studying the dependence between lines of business and the uncertainty regarding this dependence has been neglected in prior actuarial research. In practice, the evaluation of a Solvency Capital Requirement may be inaccurate when the risks of different business lines are independent. Thus, the present article aims to provide an appropriate modelling approach for claim amounts by taking into account the multivariate dependence between risks. To alleviate this issue, it uses vine copula functions to capture dependence between multivariate distributions of risks for five lines of business. Moreover, the dependence structure may be uncertain which leads to determining different levels of capital. Therefore, we propose a fuzzy inference system to handle the uncertainty of dependence structure. The obtained results reveal that considering the multivariate dependence structure produces a higher amount of Solvency Capital Requirement than the independence case. Moreover, the Solvency Capital Requirement level is decided according to the degree of dependence between risks.
Journal: Applied Economics
Pages: 6058-6074
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1935696
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1935696
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Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6058-6074
Template-Type: ReDIF-Article 1.0
Author-Name: Ranjeet Singh
Author-X-Name-First: Ranjeet
Author-X-Name-Last: Singh
Author-Name: Nemiraja Jadiyappa
Author-X-Name-First: Nemiraja
Author-X-Name-Last: Jadiyappa
Author-Name: Garima Sisodia
Author-X-Name-First: Garima
Author-X-Name-Last: Sisodia
Title: Bankruptcy law, creditors’ rights and financing choices: Evidence from a quasi-natural experiment in India
Abstract:
In this study, we examined the impact of changes in creditors’ rights on the financial policy of Indian firms in a quasi-natural experimental set up. Using the implementation of Insolvency and Bankruptcy Code (IBC) in 2016 as an exogenous policy shock, we investigated the changes in quantitative (leverage) and qualitative (debt maturity and debt heterogeneity) aspects of the financial policy. Overall, our findings indicated that the strengthening of creditors’ rights had a negative impact on debt ratio and debt heterogeneity and a positive impact on long-term debt maturity structure. These results were observed mainly in those firms that had a high probability of bankruptcy in the pre-implementation period.
Journal: Applied Economics
Pages: 6036-6042
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934395
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934395
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Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6036-6042
Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: Is it really hard to motivate those who are not highly educated? Empirical evidence from a semi-parametric analysis
Abstract:
In this study, we estimate the principal-agent model of moral hazard using a semi-parametric estimation method. We estimate the principal-agent model of moral hazard using longitudinal data on firms and managerial compensation collected from the database of Beijing Juyuan Ruisi Data Technology Corporation Limited, called RESSET. The estimated primitives in the contracting model show that most managers with high school and master educations have significantly higher costs of moral hazard than managers with university and doctor educations. Managers with high school and master educations are harder to motivate because they lack the knowledge to fulfill the delegated tasks.
Journal: Applied Economics
Pages: 6002-6035
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934394
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934394
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Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6002-6035
Template-Type: ReDIF-Article 1.0
Author-Name: Belton M. Fleisher
Author-X-Name-First: Belton M.
Author-X-Name-Last: Fleisher
Author-Name: William H. McGuire
Author-X-Name-First: William H.
Author-X-Name-Last: McGuire
Author-Name: Xiaojun Wang
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Wang
Author-Name: Min Qiang Zhao
Author-X-Name-First: Min Qiang
Author-X-Name-Last: Zhao
Title: Induced innovation: evidence from China’s secondary industry
Abstract:
We investigate the effect of rising labour costs on induced technological change in China’s secondary industry. Building on insights developed in a rich literature, we propose a model linking changes in labour productivity to changes in labour costs and the predetermined availability of physical capital. Importantly, we derive testable hypotheses to distinguish induced innovation from standard substitution of capital for labour under fixed technology. Our empirical results support the hypothesis that rising wages have induced labour-saving innovation in China, at least in the decade of the 1990s, but less so or not at all after the middle of the next decade.
Journal: Applied Economics
Pages: 6075-6093
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937037
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937037
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Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6075-6093
Template-Type: ReDIF-Article 1.0
Author-Name: Hyejin Lee
Author-X-Name-First: Hyejin
Author-X-Name-Last: Lee
Author-Name: Mansik Hur
Author-X-Name-First: Mansik
Author-X-Name-Last: Hur
Title: Non-normal errors or nonlinearity? performance of unit root tests
Abstract:
This paper investigates how unit root tests that are designed for non-normal errors perform in the presence of unknown forms of nonlinearity. This allows us to examine whether any neglected nonlinearity in an estimation procedure could be reflected, at least partly, in the form of non-normality. Our simulation study shows that in general, univariate tests that exploit the information in non-normal errors remain relatively powerful compared to well-known nonlinear unit root tests under various forms of nonlinear alternatives. We also investigate the unit root properties of the real effective exchange rates and real interest rates for 60 countries. The results support the findings in the simulation that the neglected non-normality or nonlinearity in the existing tests is captured and used in the linearized testing procedures as a source of power improvement.
Journal: Applied Economics
Pages: 6094-6103
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937038
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937038
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Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6094-6103
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyuan Zou
Author-X-Name-First: Xiaoyuan
Author-X-Name-Last: Zou
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: Qundi Feng
Author-X-Name-First: Qundi
Author-X-Name-Last: Feng
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Title: Does family involvement increase the subjective well-being of the self-employed? Evidence from China
Abstract:
Using data from the China Household Finance Survey, we investigate the relationship between family involvement and the subjective well-being (SWB) of the self-employed. Instrumental variables are used to address the potential endogeneity of family involvement. We show that family involvement has a significant effect on SWB and that the effect varies depending on whether the self-employed hire employees. When there are no employees, the effect is significantly positive; when employees are present, the effect is significantly negative. Specifically, self-employed individuals who have family involvement but no employees significantly have the higher levels of SWB than all the other self-employed individuals. Mechanism analysis shows that family involvement affects the SWB of the self-employed through an increase in business income. Robustness checks, including an extended ordered probit regression model and an estimation using an alternative measure of family involvement, validate our findings. Our analysis implies that family labour is an effective source of human resources for self-employed individuals in China, especially those without employees.
Journal: Applied Economics
Pages: 6043-6057
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934396
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934396
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Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:6043-6057
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Rodríguez Andrés
Author-X-Name-First: Antonio
Author-X-Name-Last: Rodríguez Andrés
Author-Name: Voxi Heinrich S. Amavilah
Author-X-Name-First: Voxi Heinrich S.
Author-X-Name-Last: Amavilah
Author-Name: Abraham Otero
Author-X-Name-First: Abraham
Author-X-Name-Last: Otero
Title: Evaluation of technology clubs by clustering: a cautionary note
Abstract:
Applications of machine learning techniques to economic problems are increasing. These are powerful techniques with great potential to extract insights from economic data. However, care must be taken to apply them correctly, or the wrong conclusions may be drawn. In the technology clubs literature, after applying a clustering algorithm, some authors train a supervised machine learning technique, such as a decision tree or a neural network, to predict the label of the clusters. Then, they use some performance metric (typically, accuracy) of that prediction as a measure of the quality of the clustering configuration they have found. This is an error with potential negative implications for policy, because obtaining a high accuracy in such a prediction does not mean that the clustering configuration found is correct. This paper explains in detail why this modus operandi is not sound from theoretical point of view and uses computer simulations to demonstrate it. We caution policy and indicate the direction for future investigations.
Journal: Applied Economics
Pages: 5989-6001
Issue: 52
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934393
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934393
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Handle: RePEc:taf:applec:v:53:y:2021:i:52:p:5989-6001
Template-Type: ReDIF-Article 1.0
Author-Name: Yanchun Yi
Author-X-Name-First: Yanchun
Author-X-Name-Last: Yi
Author-Name: Yajun Wang
Author-X-Name-First: Yajun
Author-X-Name-Last: Wang
Author-Name: Yaqin Li
Author-X-Name-First: Yaqin
Author-X-Name-Last: Li
Author-Name: Ji Qi
Author-X-Name-First: Ji
Author-X-Name-Last: Qi
Title: Impact of urban density on carbon emissions in China
Abstract:
Based on the panel data of 108 prefecture-level cities in China from 2003 to 2018, the carbon emission effect of urban density was studied by establishing a dynamic panel model. We found that there was a significant negative correlation between urban density and carbon emissions, and the increase in urban density reduced carbon dioxide emissions. The nonlinear estimation results of urban density and carbon emission show that urban density has different impacts on carbon emission at different urban population levels. With the increase in population size, the carbon emission reduction effect brought by urban density growth decreases. In medium-sized cities, increased urban density leads to the greatest reduction in carbon emissions, followed by large cities with populations of less than 5 million. In megacities with a population size of more than 5 million, the carbon emission reduction effect of urban density is not significant. Our conclusion supports the proposition of building compact cities and provides decision support for the ideal of ‘beautiful China’ in the process of urbanization in China.
Journal: Applied Economics
Pages: 6153-6165
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937491
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937491
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Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6153-6165
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Kofi Adom
Author-X-Name-First: Philip Kofi
Author-X-Name-Last: Adom
Author-Name: Joonho Yeo
Author-X-Name-First: Joonho
Author-X-Name-Last: Yeo
Author-Name: Lin Zhang
Author-X-Name-First: Lin
Author-X-Name-Last: Zhang
Title: Is water use sustainable and efficient in China? Evidence from a macro level analysis
Abstract:
This paper measures the performance and efficiency dynamics of provincial water use by differentiating the long-run persistent efficiency from the short-run transient efficiency. We combine the econometric frontier approach with panel Markov-switching and Tobit estimations to investigate the macro level data over the period 2002–2016. The results reveal evidence of significant provincial and regional disparities, with a mean efficiency of 0.42 in terms of water use. We find that a large share of inefficiency is attributed to the long-term structural component, with persistency inefficiency estimated as 55%. We also find that the probability of maintaining efficient is less sustainable (about 48.5% by the sixth year) compared with 54.3% for staying inefficient. Thus, it is relatively difficult to transition out of the less efficient state. We thus suggest policy directions for sustainable and efficient management of water resource use.
Journal: Applied Economics
Pages: 6166-6183
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937496
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937496
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Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6166-6183
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Aparicio
Author-X-Name-First: Juan
Author-X-Name-Last: Aparicio
Author-Name: Harold Fried
Author-X-Name-First: Harold
Author-X-Name-Last: Fried
Author-Name: Jesus Pastor
Author-X-Name-First: Jesus
Author-X-Name-Last: Pastor
Author-Name: Loren W. Tauer
Author-X-Name-First: Loren W.
Author-X-Name-Last: Tauer
Title: Learning to win on the PGA tour
Abstract:
There is variation in how long it takes a golfer to win for the first time on the PGA tour. There are also golfers who never win. We investigate the time to first win using a survival function methodology, including shots gained measures of golfing ability, number of events played, experience prior to joining the tour, the competition, as explanatory variables. We also construct and include a variable that measures the ability to perform under pressure. Our pressure construct is potentially applicable to empirical studies of performance under pressure in other sports and the workplace. The data are all golfers whose rookie year was between 2004 and 2015. We find that performance under pressure, prior experience, events played, off the tee (distance and accuracy), and putting are the top five explanations of time to first win.
Journal: Applied Economics
Pages: 6104-6119
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2020.1784391
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1784391
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Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6104-6119
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Bitar
Author-X-Name-First: Mohammad
Author-X-Name-Last: Bitar
Author-Name: Mohammed Benlemlih
Author-X-Name-First: Mohammed
Author-X-Name-Last: Benlemlih
Author-Name: Elias Erragragui
Author-X-Name-First: Elias
Author-X-Name-Last: Erragragui
Author-Name: Jonathan Peillex
Author-X-Name-First: Jonathan
Author-X-Name-Last: Peillex
Title: Legal rules, information transparency and Islamic bank capital decisions
Abstract:
To what extent does the formal institutional environment influence Islamic bank capital decisions? We answer this question by assessing the effect of the legal rule index on a sample of 100 Islamic banks in 28 countries from 1999 to 2013. Our econometric analyses show that legal rule index positively and significantly influences capital ratios. The results can be explained by the idea that effective legal rules incentivize Islamic banks to hold higher capital ratios to signal better monitoring to depositors and regulators. In addition, we find that this positive association can be enhanced through strong information transparency channels, democratic and stable political institutions. These results provide insight into how a formal institutional environment can shape Islamic bank capital ratios. It further suggests that the formal institutional environment serves as a constraint on policymakers, as any given capital guideline may function very differently depending on the complexity of the formal institutional environment.
Journal: Applied Economics
Pages: 6184-6203
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937497
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937497
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Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6184-6203
Template-Type: ReDIF-Article 1.0
Author-Name: Christos Agiakloglou
Author-X-Name-First: Christos
Author-X-Name-Last: Agiakloglou
Author-Name: Emmanouil Deligiannakis
Author-X-Name-First: Emmanouil
Author-X-Name-Last: Deligiannakis
Author-Name: Maria Psillaki
Author-X-Name-First: Maria
Author-X-Name-Last: Psillaki
Title: Investigating the behaviour of sovereign risk for Eurozone countries
Abstract:
The article examines the determinants of sovereign risk for European Monetary Union countries taking into consideration the global financial crisis, which emerged as a sovereign debt crisis in Europe. Using CDS prices, as a proxy of sovereign risk, this study finds that bond yields, equity prices and exchange rate are the key drivers of CDS prices. Moreover, our findings support models with dynamic components and regional effects between core and peripheral Eurozone countries, providing evidence of major differences in risk evaluation.
Journal: Applied Economics
Pages: 6204-6212
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937498
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937498
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Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6204-6212
Template-Type: ReDIF-Article 1.0
Author-Name: Minghua Dong
Author-X-Name-First: Minghua
Author-X-Name-Last: Dong
Author-Name: Xiong Xiong
Author-X-Name-First: Xiong
Author-X-Name-Last: Xiong
Author-Name: Xiao Li
Author-X-Name-First: Xiao
Author-X-Name-Last: Li
Title: The role of media coverage in measuring the systemic risk of Chinese financial institutions
Abstract:
This paper examines the impact of media coverage on systemic risk spillover in the Chinese market based on a tail event-driven network. By calculating the nonlinear conditional value at risk (CoVaR) through a tail-event driven network of Chinese financial institutions, we find that the CoVaR that considers media coverage has more accurate validity. When media coverage is high, the overall risk of the financial sector shifts. Compared with four different sectors, other financial institutions have the highest average risk inputs and outputs while the banking sector is the most robust. To provide further evidence, we analyse the spillover channels in times of crisis. We find that increased coverage can reduce the risk exposure within the system. We also find positive media have a lower level of systemic risk than negative media coverage in the sample period. We calculated the systemic risk exposure to illustrate the Systemically Important Financial Institutions (SIFIs) based on systemic risk emitters and receivers. The results are consistent with the Global Systemically Important Financial Institutions (G-SIFIs) and are broadly consistent with the media coverage results.
Journal: Applied Economics
Pages: 6138-6152
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1934391
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934391
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Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6138-6152
Template-Type: ReDIF-Article 1.0
Author-Name: Xu Xin
Author-X-Name-First: Xu
Author-X-Name-Last: Xin
Author-Name: Xiaoli Wang
Author-X-Name-First: Xiaoli
Author-X-Name-Last: Wang
Author-Name: Zigen Chen
Author-X-Name-First: Zigen
Author-X-Name-Last: Chen
Author-Name: Kang Chen
Author-X-Name-First: Kang
Author-X-Name-Last: Chen
Title: Coastal shuttle tanker inventory routing model with a discrete loaded quantity
Abstract:
This paper investigates a coastal shuttle tanker inventory routing problem. We convert the problem into a vehicle routing problem with time windows by using the discrete tanker loaded quantity and formulate this problem as an integer programming model. The model aims to minimize the total operating costs of the tanker fleet during the observation period. The composition and scheduling scheme of the fleet and loaded quantity of each tanker are collaboratively optimized. Based on the branch-and-price algorithm framework, an exact algorithm that can solve the actual-scale problem is designed. The efficiency and effectiveness of the algorithm are tested, and a sensitivity analysis is conducted for the fuel cost of the tankers. The results provide managerial insights that are expected to be beneficial for oil companies.
Journal: Applied Economics
Pages: 6120-6137
Issue: 53
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1918625
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1918625
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Handle: RePEc:taf:applec:v:53:y:2021:i:53:p:6120-6137
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Umutlu
Author-X-Name-First: Mehmet
Author-X-Name-Last: Umutlu
Author-Name: Pelin Bengitöz
Author-X-Name-First: Pelin
Author-X-Name-Last: Bengitöz
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Title: Decomposing the earnings-to-price ratio and the cross-section of international equity-index returns
Abstract:
We examine whether components of the earnings-to-price (EP) ratio can be used to extract incremental information to better estimate future returns in the cross-section of country-industry indexes. We demonstrate that the EP components, such as lagged EP, changes in earnings, short-term momentum and long-term reversal in prices increase the accuracy of return forecasts. The EP decomposition matters in developed markets but is pointless in emerging countries. The results are robust to modifications in the methodology, sub-period analyses, the use of an alternative sample and remain unchanged after controlling for net share issuance, size, and fixed country and time effects.
Journal: Applied Economics
Pages: 6213-6230
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937499
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937499
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Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6213-6230
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Khan
Author-X-Name-First: Muhammad
Author-X-Name-Last: Khan
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Financial instability and environmental degradation: a panel data investigation
Abstract:
Economic theory suggests several channels through which financial instability might influence environmental quality. However, the empirical testing of this nexus comprises only few studies with conflicting outcomes on both the presence as well as the direction of this relationship. This study aims to fill this gap by analysing the relationship between pollution emissions, financial instability, output growth, trade openness, gross fixed capital formation and foreign direct investment (FDI) using a large sample of 88 developing economies for the 1980–2014 period. For our short- and long-run estimates, we use the panel vector error correction model (P-VECM) and the panel cointegration method. Our outcomes support the presence of long-run relationships between the selected variables. Moreover, the income, trade openness, investment and financial instability variables augment carbon dioxide (CO2) emissions, whereas FDI reduces the latter. The vector error correction model (VECM) models show a bidirectional, short-run connection between income and environmental degradation. Our empirical findings have some important policy implications for developing countries.
Journal: Applied Economics
Pages: 6319-6331
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937508
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937508
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Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6319-6331
Template-Type: ReDIF-Article 1.0
Author-Name: Hyeongwoo Kim
Author-X-Name-First: Hyeongwoo
Author-X-Name-Last: Kim
Author-Name: Madeline H. Kim
Author-X-Name-First: Madeline H.
Author-X-Name-Last: Kim
Title: U.S. presidential election polls and the economic prospects of China and Mexico
Abstract:
Motivated by Mr. Trump’s agendas against China and Mexico, we investigate how a candidate’s probability of winning the U.S. presidential election affects the international financial markets that are related to these countries. Unexpected increases in Trump’s probability of winning the 2020 election generate significantly negative long-term effects on their home currency and the stock prices, while the default probability responds significantly positively in the long run. Similar responses, though in the short run, were observed when Mr. Biden’s probability of winning increases, which tends to dissipate quickly over time. The responses to the Biden shock resemble those to the Trump shock during the 2016 election, implying that the probability shock of the new entrant candidate creates short-run disturbances in the financial market, whereas the probability shock of the incumbent candidate such as Trump in 2020 or Clinton in 2016 helps stabilize financial markets in the short run.
Journal: Applied Economics
Pages: 6231-6248
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937501
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937501
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Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6231-6248
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Biscione
Author-X-Name-First: Antonella
Author-X-Name-Last: Biscione
Author-Name: Dorothée Boccanfuso
Author-X-Name-First: Dorothée
Author-X-Name-Last: Boccanfuso
Author-Name: Annunziata De Felice
Author-X-Name-First: Annunziata
Author-X-Name-Last: De Felice
Title: Regulations and Corporate Environmental Responsibility: evidence from a panel of firms in Transition economies
Abstract:
This study investigates how a set of regulations influences the pro-environmental actions of firms in a panel of 25 Transition Countries. For this purpose, we use the enterprise survey data developed by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the World Bank Group (WBG). Based on a logit modelling and on the construction of different indicators characterizing the environmental actions of the firms, we find that regulation positively affects the decision of firms to implement an eco-action. Results are confirmed when we examine the different eco-action categories. Findings obtained from the interactions are also worthy of note. In particular, we find that board of directors are more prone to consider shareholder interests, and a strong network effect emerges between EU candidate countries and EU economies.
Journal: Applied Economics
Pages: 6286-6299
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937506
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937506
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Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6286-6299
Template-Type: ReDIF-Article 1.0
Author-Name: Fei Fan
Author-X-Name-First: Fei
Author-X-Name-Last: Fan
Author-Name: Shangze Dai
Author-X-Name-First: Shangze
Author-X-Name-Last: Dai
Author-Name: Keke Zhang
Author-X-Name-First: Keke
Author-X-Name-Last: Zhang
Author-Name: Haiqian Ke
Author-X-Name-First: Haiqian
Author-X-Name-Last: Ke
Title: Innovation agglomeration and urban hierarchy: evidence from Chinese cities
Abstract:
Innovation agglomeration leads to changes in the hierarchical structure of innovation, driving regional economic development. We establish a general equilibrium framework for urban innovation, that is to say, the process of production in a city can be divided into the knowledge production sector and final goods production sector. By this we explain the positive matching relationship between innovation agglomeration and a city’s position in the urban hierarchy (herein called urban tier). Then we empirically analyse 286 prefecture level Chinese cities to evaluate the impact of urban tier on innovation agglomeration using a two-way fixed effect model. To reveal the nonlinear relationship between urban hierarchy and innovation agglomeration, panel quantile and threshold regression models were also used. The main results show that: (1) The spatial structure of innovation in Chinese cities is consistent with the urban tier, and the urban tier plays a significant role in promoting innovation agglomeration. (2) Heterogeneous spatial structures of innovation among urban tiers are reflected in the higher agglomeration of innovation resources in high-tier cities, and the impact of city scale on innovation agglomeration is nonlinear. When the city scale reaches a certain threshold value, its impact on innovation agglomeration is significantly strengthened.
Journal: Applied Economics
Pages: 6300-6318
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937507
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937507
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Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6300-6318
Template-Type: ReDIF-Article 1.0
Author-Name: Kanix Bukkavesa
Author-X-Name-First: Kanix
Author-X-Name-Last: Bukkavesa
Author-Name: Dinorah Frutos-Bencze
Author-X-Name-First: Dinorah
Author-X-Name-Last: Frutos-Bencze
Author-Name: Nat Kulvanich
Author-X-Name-First: Nat
Author-X-Name-Last: Kulvanich
Title: Is growth in entrepreneurial activity truly beneficial for a prosperous and equitable economy?
Abstract:
This study attempts to refine and extend the understanding of how entrepreneurial activity in combination with various institutional and economic factors may increase or decrease the levels of economic inequality of a country. We use fuzzy-set qualitative comparative analysis (fsQCA) methodology to obtain various configurations that arise when dimensions based on the national business systems framework are combined with entrepreneurial activity measures. We analysed configurations for two years, 2010 and 2018. Our findings suggest that there are several configurations of different types of entrepreneurial activities and institutional factors that lead to income inequality. However, there are also several configurations that promote income equality.
Journal: Applied Economics
Pages: 6249-6265
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937502
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937502
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Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6249-6265
Template-Type: ReDIF-Article 1.0
Author-Name: Azzurra Annunziata
Author-X-Name-First: Azzurra
Author-X-Name-Last: Annunziata
Author-Name: Massimiliano Agovino
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Agovino
Author-Name: Aniello Ferraro
Author-X-Name-First: Aniello
Author-X-Name-Last: Ferraro
Author-Name: Angela Mariani
Author-X-Name-First: Angela
Author-X-Name-Last: Mariani
Title: Food waste as a consequence of an inefficient consumer’s choices: a microeconomic approach
Abstract:
This study frames the household food waste challenge in the microeconomic theory context by proposing a model that considers food waste a consequence of inefficient consumer choices. A data envelopment analysis (DEA) methodology was applied to factor consumer’s efficiency level dimension, starting from data collected through a web survey conducted in Italy with a sample of 530 individuals responsible for their households’ food-shopping. The findings confirm that food waste is a complex issue, affected by both behavioural and psychological factors, synthesized in three indices constructed with fuzzy analysis. The results show that the shopping behaviour index generates a higher average efficiency score for food waste minimization than the food waste concerns and moral attitudes indices. Furthermore, those drivers have different efficiency levels in reducing food waste with reference to gender, age, family composition, and educational level. The results have several implications for policymakers: they highlight the need to implement tailored educational and information campaigns that consider the most important targets identified, such as large families with children, young people, and men.
Journal: Applied Economics
Pages: 6266-6285
Issue: 54
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1937503
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937503
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Handle: RePEc:taf:applec:v:53:y:2021:i:54:p:6266-6285
Template-Type: ReDIF-Article 1.0
Author-Name: Dinesh Gajurel
Author-X-Name-First: Dinesh
Author-X-Name-Last: Gajurel
Author-Name: Biplob Chowdhury
Author-X-Name-First: Biplob
Author-X-Name-Last: Chowdhury
Title: Realized Volatility, Jump and Beta: evidence from Canadian Stock Market
Abstract:
Inclusion of jump component in the price process has been a long debate in finance literature. In this paper, we identify and characterize jump risks in the Canadian stock market using high-frequency data from the Toronto Stock Exchange. Our results provide a strong evidence of jump clustering – about 30% of jumps occur within first 30 minutes of trading hours, and about 25% of jumps are due to the overnight returns. While average intraday jump is negative, jumps induced by overnight returns bring a cancellation effect yielding average size of the jumps to zero. We show that the economic significance of jump component in volatility forecasting is significant but nominal. Our results further demonstrate that market jumps and overnight returns bring significant changes in systematic risk of stocks. From a cross-sectional perspective, while the average effect of market jumps on the beta is not significantly different from zero, the average effect of overnight returns is statistically significant. Overall, our results suggest that systematic risk induced by the market jumps could be hedged by combining value stocks and growth stocks in a portfolio whereas the systematic risk induced by overnight returns can not be hedged even with a well diversified portfolio.
Journal: Applied Economics
Pages: 6376-6397
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940082
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940082
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Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6376-6397
Template-Type: ReDIF-Article 1.0
Author-Name: Xianfang Su
Author-X-Name-First: Xianfang
Author-X-Name-Last: Su
Author-Name: Wenqiang Zhan
Author-X-Name-First: Wenqiang
Author-X-Name-Last: Zhan
Author-Name: Yong Li
Author-X-Name-First: Yong
Author-X-Name-Last: Li
Title: Quantile dependence between investor attention and cryptocurrency returns: evidence from time and frequency domain analyses
Abstract:
This paper examines, in the time and frequency domains, the quantile dependence and directional predictability of investor attention to cryptocurrency returns. We find that there is significant tail dependence between investor attention and cryptocurrency returns. When market pays very high or very low attention to cryptocurrencies, there is an increased likelihood to have very large positive gains and suffer from very large negative results. Our results indicate that the quantile dependence between investor attention and cryptocurrency returns has a higher statistical significance in the long-term than medium-term and short-term. This implies that quantile dependence between investor attention and cryptocurrency returns is mainly dominated by low-frequency components. These findings have important implications for cryptocurrency investors.
Journal: Applied Economics
Pages: 6439-6471
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940826
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940826
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Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6439-6471
Template-Type: ReDIF-Article 1.0
Author-Name: Rajiv Nathoo
Author-X-Name-First: Rajiv
Author-X-Name-Last: Nathoo
Author-Name: Ruhul Salim
Author-X-Name-First: Ruhul
Author-X-Name-Last: Salim
Author-Name: Vinaye Ancharaz
Author-X-Name-First: Vinaye
Author-X-Name-Last: Ancharaz
Author-Name: Mahfuz Kabir
Author-X-Name-First: Mahfuz
Author-X-Name-Last: Kabir
Title: Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?
Abstract:
This article applies the flexible estimation approach to estimate an augmented gravity trade model to investigate the link between aid for trade (AfT) and export diversification along the intensive and extensive margins in 42 sub-Saharan African (SSA) countries for the period 1995 to 2019. The findings suggest that total AfT is conducive to export diversification along both margins. When analysed by the AfT category, the results reveal that AfT for trade facilitation is more effective in the short run in boosting exports at the extensive margin while AfT for productive capacity building has a bigger impact along both export margins in the longer term. AfT for economic infrastructure seems to promote exports only at the intensive margin. A key policy implication for the donor community is that providing new and additional resources to trade facilitation in African countries could deliver the highest immediate returns in terms of aid effectiveness.
Journal: Applied Economics
Pages: 6412-6425
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940084
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940084
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Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6412-6425
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Bucci
Author-X-Name-First: Alberto
Author-X-Name-Last: Bucci
Author-Name: Lorenzo Carbonari
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Carbonari
Author-Name: Monia Ranalli
Author-X-Name-First: Monia
Author-X-Name-Last: Ranalli
Author-Name: Giovanni Trovato
Author-X-Name-First: Giovanni
Author-X-Name-Last: Trovato
Title: Health and economic development: evidence from non-OECD countries
Abstract:
This paper studies the empirical relationship between population’s health and real GDP dynamics in low- and middle-income countries. We employ a semi-parametric technique, which combines mixed panel data models and cluster analysis to account for unobserved heterogeneity, an important source of estimation bias in growth regressions. We estimate a version of the Solow growth model augmented with human capital, in the form of both education and health. Our estimates show that population s health, here proxied by the life expectancy at birth, has a positive, sizable, and statistically significant effect on both the level and the growth rate of the real per capita GDP.
Journal: Applied Economics
Pages: 6348-6375
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1939856
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Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6348-6375
Template-Type: ReDIF-Article 1.0
Author-Name: Huwei Wen
Author-X-Name-First: Huwei
Author-X-Name-Last: Wen
Author-Name: Zhao Zhao
Author-X-Name-First: Zhao
Author-X-Name-Last: Zhao
Title: How does China’s industrial policy affect firms’ R&D investment? Evidence from ‘Made in China 2025’
Abstract:
Aimed at improving innovation capacity and upgrading technology of manufacturing industry, ‘Made in China 2025’ (CM2025), which relies on selective industrial policies, has attracted great attention. This paper investigates the effects of CM2025 on firms’ R&D investment using CEM-DID, a combination method based on the coarsened exact matching and the difference-in-difference. The method can effectively identify causal relationships without suffering from selection bias. Employing a panel data of 1,440 Chinese A-share listed firms from 2012 to 2018, we find firms with core business covered by the areas of CM2025 increase their R&D investment significantly after the policy intervention. Moreover, CM2025 significantly increases government subsidies and financial loans for treated firms, and both effects are larger for SOEs. This finding supports the critique that CM2025 goes against the competitive neutrality principle. No increase in innovation output and total factor productivity is found in the short-term. Our findings are enlightening for enacting better industrial policies.
Journal: Applied Economics
Pages: 6333-6347
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2020.1717429
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1717429
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Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6333-6347
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Hu
Author-X-Name-First: Wei
Author-X-Name-Last: Hu
Author-Name: Zhenxing Xiong
Author-X-Name-First: Zhenxing
Author-X-Name-Last: Xiong
Title: Do stringent environmental regulations help improve the total factor carbon productivity? Empirical evidence from China’s industrial sectors
Abstract:
How can China fully use the limited carbon emission space to achieve the dual goal of stable economic growth and a gradual decline in carbon emissions under increasingly severe global climate change? To address this issue, this paper incorporates the carbon emission space as a production factor into the total factor analysis framework and discusses how environmental regulations affect the total factor carbon productivity. The conclusions reveal that the current environmental regulations have a direct effect on improvement in the total factor carbon productivity of industrial sectors. Environmental regulations also have an indirect effect on the total factor carbon productivity that is mainly achieved through the energy structure and technological advancement. The results of the additional analyses show that these direct and indirect effects have threshold characteristics. Increasing the total factor carbon productivity is beneficial only when the environmental regulation intensity, energy structure and technological level are within a reasonable threshold range. Therefore, the environmental regulation intensity, energy structure conditions and technological level need to be considered when environmental regulations are relied upon to improve the total factor carbon productivity.
Journal: Applied Economics
Pages: 6398-6411
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940083
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940083
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Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6398-6411
Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Ateca-Amestoy
Author-X-Name-First: Victoria
Author-X-Name-Last: Ateca-Amestoy
Author-Name: Arantza Ugidos
Author-X-Name-First: Arantza
Author-X-Name-Last: Ugidos
Title: Gender differences in cultural and sports activities attendance: an intra-couple analysis
Abstract:
We study how education affects cultural and sports attendance of spouses using the Survey on Living Conditions 2015. With a sample of 7920 heterosexual couples, we estimate bivariate models for attendance to cinema, visits to monuments, life performances and sports events. We conduct research at the intra-household level and estimate the marginal effect of female and male characteristics over the probability of having a household where both members participate in the same type of social activity. Own and spouse’s education, income and having young children (0–3 years old) are the main drivers of both partners’ attending the same activities. Both male and female education have a positive, but not statistically different effect, on these probabilities. The probability of both spouses participating in culture and sports activities increases with income and decreases with the presence of young children.
Journal: Applied Economics
Pages: 6426-6438
Issue: 55
Volume: 53
Year: 2021
Month: 11
X-DOI: 10.1080/00036846.2021.1940085
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1940085
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Handle: RePEc:taf:applec:v:53:y:2021:i:55:p:6426-6438
Template-Type: ReDIF-Article 1.0
Author-Name: In Kyung Kim
Author-X-Name-First: In Kyung
Author-X-Name-Last: Kim
Title: Organizational form and performance: The cinema chain case
Abstract:
In this article, we explore the relationship between the organizational form of a chain-affiliated establishment and its performance. Unlike previous studies focusing on retail or small service sectors, we consider an industry that requires large investments in equipment and facilities. Using cross-sectional data on Korean movie theatres, we find evidence that performance is higher in company-owned theatres than in franchised ones. We also find that company-owned theatres maintain higher-quality equipment compared to franchised theatres while setting prices higher. These findings and the observation that the share of franchised theatres falls over time in this industry are consistent with the implications of the capital-constraint argument for franchising rather than the agency-incentives argument.*
Journal: Applied Economics
Pages: 6472-6487
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946003
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946003
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Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6472-6487
Template-Type: ReDIF-Article 1.0
Author-Name: Wensheng Kang
Author-X-Name-First: Wensheng
Author-X-Name-Last: Kang
Author-Name: Fernando Perez de Gracia
Author-X-Name-First: Fernando
Author-X-Name-Last: Perez de Gracia
Author-Name: Ronald A. Ratti
Author-X-Name-First: Ronald A.
Author-X-Name-Last: Ratti
Title: Do gasoline prices respond to non-US and US oil supply shocks?
Abstract:
This paper extends previous literature that investigates the impact of crude oil prices on US gasoline prices using a structural vector autoregressive model of the global crude oil market. In particular, we disentangle the global oil production into non-US and US oil production and we examine whether real gasoline prices respond to non-US and US oil supply shocks using monthly data from October 1973 to February 2018. It shows that non-US (US) oil supply disruptions generate nonsignificant (significantly positive) effects on the real price of oil and real price of gasoline. The effect of non-US (US) oil supply shocks on the real price of gasoline has been declining (rising) over time.
Journal: Applied Economics
Pages: 6488-6496
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946473
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946473
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Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6488-6496
Template-Type: ReDIF-Article 1.0
Author-Name: Sunil Sangwan
Author-X-Name-First: Sunil
Author-X-Name-Last: Sangwan
Author-Name: Narayan Chandra Nayak
Author-X-Name-First: Narayan Chandra
Author-X-Name-Last: Nayak
Author-Name: Harshita
Author-X-Name-First:
Author-X-Name-Last: Harshita
Author-Name: Vikas Sangwan
Author-X-Name-First: Vikas
Author-X-Name-Last: Sangwan
Title: Borrowers’ credit risk factors, perception towards repayment interventions and moral hazard in loan delinquency: an investigation of Indian microfinance institutions
Abstract:
The study explores the borrowers’ credit risk factors, perception towards repayment interventions, and the problems of moral hazard affecting delinquency in uncollateralized loans issued by the Microfinance Institutions (MFI). It employs the partial least square structural equation modelling to develop a buyer-side perception-behavioural model for borrowers’ loan delinquency behaviour. The findings indicate that the borrowers’ perception towards MFI loan repayment interventions and group homogeneity significantly reduces the moral hazard problem leading to a lower delinquency rate. The household socio-economics characteristics also seem to have a significant association with the borrowers’ loan delinquency. Identification of borrowers’ credit risk factors and the interlinkage between borrower’s perception towards repayment interventions, group homogeneity, and moral hazard in loan delinquency can provide critical insights that MFIs can consider while disbursing uncollateralized loans to control the default risk.
Journal: Applied Economics
Pages: 6554-6569
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946478
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946478
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Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6554-6569
Template-Type: ReDIF-Article 1.0
Author-Name: Munawar Ismail
Author-X-Name-First: Munawar
Author-X-Name-Last: Ismail
Title: The direct effect of commercial banks on poverty reduction: evidence from provinces in Indonesia
Abstract:
Many studies at the macro-level have proved the direct influence of savings and credit on poverty reduction. This study aimed to correct this finding and employed commercial banks as the research case because most poor people had major barriers to directly access services provided by commercial banks. This study revealed that savings did not affect poverty reduction by employing panel data composed from provinces in Indonesia from 2004 to 2018. This finding indicated that the poor people did not prefer commercial banks for saving their money which functions as an instrument for their fund accumulation or emergency savings. On the contrary, this study proved that the credit of commercial banks affected regional poverty. Besides, this study revealed that poverty among regions in Indonesia was heterogeneous. The regions with more developed banking infrastructures do not automatically have a low poverty rate. Therefore, anti-regional poverty policy should focus on commercial bank reinforcement as intermediary institutions and regional aspects.
Journal: Applied Economics
Pages: 6497-6509
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946474
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946474
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Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6497-6509
Template-Type: ReDIF-Article 1.0
Author-Name: Zhengrong Yi
Author-X-Name-First: Zhengrong
Author-X-Name-Last: Yi
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Title: Import trade liberalization and individual happiness: evidence from chinese general social survey 2010-2015
Abstract:
The happiness of citizens has long been the focus of all national governments. From a perspective of import trade liberalization, this paper uses 2010–2015 Chinese General Social Survey (CGSS) data to analyse whether import trade liberalization can improve national happiness and through which channels. The results show that import trade liberalization can significantly improve individual happiness and promote the happiness of citizens in the central region. When individuals are high-educated or high-income ones, trade liberalization can make them come out of the feelings of unhappiness more quickly. The trade liberalization can consolidate the happiness foundation of rural residents and improve the feelings of very happy of the urban ones. Further mechanism analysis demonstrates that import trade liberalization can improve individual happiness by enhancing individual fitness and marketization of the provinces where the individual is settled.
Journal: Applied Economics
Pages: 6535-6553
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946477
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946477
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Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6535-6553
Template-Type: ReDIF-Article 1.0
Author-Name: He Xiao
Author-X-Name-First: He
Author-X-Name-Last: Xiao
Author-Name: Xin Chen
Author-X-Name-First: Xin
Author-X-Name-Last: Chen
Author-Name: Heyang Fang
Author-X-Name-First: Heyang
Author-X-Name-Last: Fang
Author-Name: Yifei Zhang
Author-X-Name-First: Yifei
Author-X-Name-Last: Zhang
Title: Insider share pledging and firm value consequences under the COVID-19: evidence from China
Abstract:
Share pledging, the practice in which shareholders secure a loan using their shares, has become a global phenomenon in recent years. In this paper, we investigate the effect of such corporate insider actions on outsider wealth during the pandemic. Concretely, we examine how firms’ market value change when corporate insiders pledge their shareholdings during China’s COVID-19 outbreak. It is found that market investors responded adversely to share pledging announcements by firms in the high pandemic-affected regions. Besides, the state ownership and better corporate governance structures of the pledged firms could mitigate such adverse impacts. Our study highlights a specific externality generated by corporate insiders to outside shareholders during a crisis period.
Journal: Applied Economics
Pages: 6522-6534
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946476
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946476
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Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6522-6534
Template-Type: ReDIF-Article 1.0
Author-Name: Jungho Baek
Author-X-Name-First: Jungho
Author-X-Name-Last: Baek
Title: A new look at the oil prices and exchange rates nexus: a quantile cointegrating regression approach to south korea
Abstract:
The present article contributes to the existing research by applying a quantile autoregressive distributed lag (QARLD) method to investigate whether the locational asymmetries across quantiles exist between oil prices and the real exchange rate for an oil-importer, specifically South Korea (KRW). We discover that the oil price impacts are heterogeneous across quantiles and evidence of locational asymmetry in the short run. In the long run, however, there is little evidence of significant oil price impacts across quantiles and of locational asymmetry.
Journal: Applied Economics
Pages: 6510-6521
Issue: 56
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946475
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946475
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Handle: RePEc:taf:applec:v:53:y:2021:i:56:p:6510-6521
Template-Type: ReDIF-Article 1.0
Author-Name: Seongkyu Gilbert Park
Author-X-Name-First: Seongkyu Gilbert
Author-X-Name-Last: Park
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Contract size changes in the options market: effects on market efficiency and investor behaviour
Abstract:
We study options market participants’ trading behaviour before and after the options multiplier increases. After the options multiplier increases, the options market becomes more efficient. By analysing the high-frequency microstructure dataset, we show that local retail and local institutional investors who trade in both options and futures markets trade more after the change in the multiplier. Our results imply that the increase in the market efficiency may be caused by fewer speculators. In addition, lottery stocks are traded more actively after the options multiplier increase.
Journal: Applied Economics
Pages: 6670-6682
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1948962
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1948962
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Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6670-6682
Template-Type: ReDIF-Article 1.0
Author-Name: Hebatalla Atef Emam
Author-X-Name-First: Hebatalla Atef
Author-X-Name-Last: Emam
Title: Interest rate setting in Egypt: a NARDL approach for estimating backward-looking monetary policy reaction function
Abstract:
The role of inflation versus output and exchange rate in designing monetary policy in Egypt has been subject to considerable debate in literature, even after the proclamation of price stability as the monetary policy objective in 2004 and the adoption of flexible exchange rate system in 2016. This study aims to investigate the main drivers of interest rate setting in Egypt throughout the period from 2005 to 2019. In this context, both an ARDL and NARDL econometric techniques are employed to estimate the backward-looking augmented Taylor monetary policy reaction function. The estimated equation estimates policy rate as a function in lagged inflation, lagged output gap, lagged policy rate, change in real effective exchange rate, in addition to other variables. The importance of this study arises from the lack of recent studies assessing interest rate setting in Egypt. The study concludes that monetary policy in Egypt has been accommodative to inflation and that Central Bank of Egypt responds asymmetrically to shocks in inflation, output and exchange rate.
Journal: Applied Economics
Pages: 6655-6669
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1948961
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1948961
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Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6655-6669
Template-Type: ReDIF-Article 1.0
Author-Name: Nighat Seema
Author-X-Name-First: Nighat
Author-X-Name-Last: Seema
Author-Name: Fazal Jawad Seyyed
Author-X-Name-First: Fazal Jawad
Author-X-Name-Last: Seyyed
Author-Name: Choudhry Tanveer Shehzad
Author-X-Name-First: Choudhry Tanveer
Author-X-Name-Last: Shehzad
Title: Impact of gender on access to finance in developing countries
Abstract:
This paper studies the effect of female ownership on access to finance on a broad panel of developing countries. We find that female owners generally face more credit constraints compared to their male counterparts, however, such constraints are lower for women-owned firms that have an experienced senior management. We further show that with better institutional and policy environment in a country, women-owned firms face fewer credit constraints. Our findings remain robust when tested across a sample of small and medium enterprises (hereinafter SMEs) and other sensitivity tests.
Journal: Applied Economics
Pages: 6582-6610
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1947958
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1947958
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Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6582-6610
Template-Type: ReDIF-Article 1.0
Author-Name: Mariarosaria Comunale
Author-X-Name-First: Mariarosaria
Author-X-Name-Last: Comunale
Author-Name: Francesco Paolo Mongelli
Author-X-Name-First: Francesco Paolo
Author-X-Name-Last: Mongelli
Title: Tracking growth in the euro area subject to a dimensionality problem
Abstract:
Which variables have supported growth in the euro area over the last 30 years? Answering is challenging due to dimensionality problems caused by a large set of potential determinants, limited data availability, and the prospect of non-stationarity of some variables. We propose an atheoretical framework starting with a set of 35 real, financial, monetary, and institutional variables for nine of the initial euro area countries covering the period between 1990Q1 and 2019Q4. Using the Weighted-Average Least Squares method, we gather clues about which variables to select. We quantify the impact of various determinants of growth in the short and long runs. Our main findings are that institutional reforms, competitiveness, monetary policy and a decrease in systemic risk play a relevant role for long-run growth in the euro area. Surprisingly, the fiscal deficit is not an important factor, and neither is credit to households. Lower debt to GDP ratios are beneficial in the short run. Credit to firms has been an important factor for growth in core countries and an increase in global GDP spillovers positively to the euro area growth in a longer horizon.
Journal: Applied Economics
Pages: 6611-6625
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1947959
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1947959
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Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6611-6625
Template-Type: ReDIF-Article 1.0
Author-Name: Yan Li
Author-X-Name-First: Yan
Author-X-Name-Last: Li
Author-Name: Yanjiang Wu
Author-X-Name-First: Yanjiang
Author-X-Name-Last: Wu
Author-Name: Yaqing Chen
Author-X-Name-First: Yaqing
Author-X-Name-Last: Chen
Author-Name: Qingbo Huang
Author-X-Name-First: Qingbo
Author-X-Name-Last: Huang
Title: The influence of foreign direct investment and trade opening on green total factor productivity in the equipment manufacturing industry
Abstract:
Foreign direct investment (FDI) and import and export trade helped strengthen China’s equipment manufacturing industry, which is among the world’s top high performing industries. However, extensive economic growth in the manufacturing sector has caused massive resource consumption and serious environmental pollution. Therefore, this paper analyzes the impact of FDI and trade openness on the green total factor productivity (GTFP) of China’s equipment manufacturing industry by using panel data of the equipment manufacturing industry and 7 sub-industries in China operating from 2003 to 2015. The results indicate that FDI, export trade, human capital, and environmental regulation have asignificant positive impact on the GTFP of China’s equipment manufacturing industry, while import trade and technological innovation have asignificant negative impact. And the levels of human capital, technological innovation and environmental regulation restrict the impact of FDI and export trade on the GTFP of the equipment manufacturing industry through threshold effects.
Journal: Applied Economics
Pages: 6641-6654
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1947961
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1947961
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Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6641-6654
Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kim
Author-X-Name-First: Minjung
Author-X-Name-Last: Kim
Title: Financial constraints, productivity, and the global financial crisis
Abstract:
This study investigates the effects of firms’ financial constraints on their productivity by considering firms’ ownership structure and characteristics using a manufacturing firm-level dataset from South Korea for the period 2006–2017. The System Generalized Method of Moments results indicate that foreign multinational corporations rarely experienced financial constraints on their productivity, whereas the effects of financial constraints on productivity were aggravated for domestic firms during the global financial crisis. Particularly, small, young, and unaffiliated domestic firms experienced more severe financial constraints, especially during the global financial crisis, than did large, old, and affiliated domestic firms. The results show that small, young, and unaffiliated domestic firms which invested in R&D activity were less financially constrained than those without R&D activity. Based on the Heckman two-step estimation results, financial factors significantly affected R&D investment; thus, severe financial constraints hindered optimal R&D investment, which is necessary for productivity enhancement. Therefore, financial market failure during the global financial crisis resulted in productivity polarization. Hence, policies that relax financial constraints for innovation activity, such as R&D subsidies and tax exemption incentives should be targeted to financially vulnerable firms, such as small, young, and unaffiliated domestic firms. These policies should be strengthened during a financial crisis.
Journal: Applied Economics
Pages: 6570-6581
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1922596
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1922596
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Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6570-6581
Template-Type: ReDIF-Article 1.0
Author-Name: Monoj Kumar Majumder
Author-X-Name-First: Monoj Kumar
Author-X-Name-Last: Majumder
Author-Name: Mala Valliammai Raghavan
Author-X-Name-First: Mala Valliammai
Author-X-Name-Last: Raghavan
Author-Name: Joaquin L. Vespignani
Author-X-Name-First: Joaquin L.
Author-X-Name-Last: Vespignani
Title: Impact of commodity price volatility on external debt: the role of exchange rate regimes
Abstract:
This study explores the impact of commodity price volatility on external debt accumulation under fixed, managed, and floating exchange rate regimes. We estimate dynamic panel data models for 97 countries from 1993 to 2016. Our empirical findings show that commodity price volatility increases external debt accumulation for commodity-exporting countries. This impact is three-times higher for countries with fixed exchange rate regimes compared to managed floating exchange rate regimes. Under floating exchange regimes, the effect of commodity price volatility on external debt is statistically insignificant. Our results suggest that the adoption of a floating exchange rate regime by commodity-exporting countries is critical to mitigate the effects of commodity price volatility on external debt accumulation.
Journal: Applied Economics
Pages: 6626-6640
Issue: 57
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1947960
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1947960
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Handle: RePEc:taf:applec:v:53:y:2021:i:57:p:6626-6640
Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Apergis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Apergis
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The impact of COVID-19 on economic growth: evidence from a Bayesian Panel Vector Autoregressive (BPVAR) model
Abstract:
This paper explores the impact on the macroeconomy for certain OECD economies exposed to the COVID-19 pandemic shock. The analysis employs a panel of OECD countries, spanning the period March 2020 to January 2021. It also uses two proxies for the COVID-19 shocks: i) total confirmed incidences/cases and ii) total deaths while using the Bayesian Panel Vector Autoregressive (BPVAR) method. The findings document that the COVID-19 shock exerts a strong negative effect on industrial production. Considering how such epidemic shocks affect the expectations of economic participants, the paper questions their absence in accounting for forthcoming growth-related incidences.
Journal: Applied Economics
Pages: 6739-6751
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1946479
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1946479
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Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6739-6751
Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Rajesh Pathak
Author-X-Name-First: Rajesh
Author-X-Name-Last: Pathak
Author-Name: Ranjan DasGupta
Author-X-Name-First: Ranjan
Author-X-Name-Last: DasGupta
Author-Name: Perry Sadorsky
Author-X-Name-First: Perry
Author-X-Name-Last: Sadorsky
Title: Modelling dependence and systemic risk between oil prices and BSE sectoral indices using stochastic copula and CoVar, ΔCoVar and MES approaches
Abstract:
We investigate the dependency, risk spillovers, and systemic risk between the sectoral indices returns of the Bombay stock exchange (BSE) and oil prices using recently developed empirical techniques. The dependence is modelled using the time varying Stochastic Autoregressive Copulas (SCAR). Conditional value-at-risk (CoVaR), ΔCoVaR and marginal expected shortfall (MES) measures are used to examine the systemic risk. We find rotated Gumbel and normal copulas to be the best fitting in our analysis. Sectors such as energy, power, and industrial exhibit higher persistence in dependence structure compared to other sectors. Our results reveal that the underlying forces of the dependence between oil prices with other industries vary across time, albeit not so much during stable periods, but increase remarkably during turbulent times. All sectors are affected significantly by extreme oil price movements. The average short-run MES is highest for the metals, materials, and industrials sectors. The lowest average short-run MES values are observed for the fast-moving consumer goods, auto, and carbon sectors. Our risk analysis results reveal that Indian stock sectors are not resistant to oil shocks and there exists significant systemic risk between these markets and the crude oil market.
Journal: Applied Economics
Pages: 6770-6788
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949430
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949430
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Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6770-6788
Template-Type: ReDIF-Article 1.0
Author-Name: Dong Zhou
Author-X-Name-First: Dong
Author-X-Name-Last: Zhou
Author-Name: Xue Li
Author-X-Name-First: Xue
Author-X-Name-Last: Li
Author-Name: Yaqin Su
Author-X-Name-First: Yaqin
Author-X-Name-Last: Su
Title: The Impacts of Education on Domestic Violence: Evidence from China
Abstract:
Exploiting the Compulsory Schooling Law reform in China, this paper investigates the causal impact of education on the likelihood of women experiencing domestic violence from their spouse. The local average treatment effects (LATE) obtained through the instrument variables approach indicate that one additional year of schooling lowers women’s likelihood of experiencing physical and sexual abuse from their spouse by 7.1 and 3.4 percentage points, respectively. Further, we find that the causal impacts of education are more pronounced in the subsample of women who are less educated, women in rural areas, and women in regions with relatively lower human capital endowment prior to the reform. Additionally, we explore various channels and find that change in attitudes towards gender roles may be an important channel explaining the impact of increased female education on lowering domestic violence. We also address the possible bias caused by migration of individuals, and our results remain robust.
Journal: Applied Economics
Pages: 6702-6720
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1937504
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937504
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Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6702-6720
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Addendum
Journal: Applied Economics
Pages: 6789-6789
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2020.1775028
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1775028
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Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6789-6789
Template-Type: ReDIF-Article 1.0
Author-Name: Jihun Bae
Author-X-Name-First: Jihun
Author-X-Name-Last: Bae
Author-Name: Jeong Hwan Joo
Author-X-Name-First: Jeong Hwan
Author-X-Name-Last: Joo
Title: CEO turnover, leadership vacuum, and stock market reactions
Abstract:
CEO departures with a delay in successor appointment create a leadership vacuum inducing operational disruption and strategic uncertainty. Such departures also produce turnaround benefits from cutting ties with a poorly performing CEO and by allowing additional time to search for a qualified successor. Prior studies fail to disentangle these perceived costs and benefits associated with CEO dismissal. After filtering out the turnaround benefits, we find that the market reacts incrementally negatively to CEO departure announcements with a delay in successor appointment than those without such delay, capturing incremental switching costs caused by a leadership vacuum. We also find that the leadership vacuum cost is larger in a more volatile environment or with abandonment of a relay succession plan. Our findings contribute to CEO turnover literature by suggesting that a temporary leadership vacuum is an indicator of abandonment of a succession plan that has been influenced by a poorly performing CEO and that such abandonment creates an opportunity to achieve performance turnaround through a better successor.
Journal: Applied Economics
Pages: 6752-6769
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1927969
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927969
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Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6752-6769
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Iania
Author-X-Name-First: Leonardo
Author-X-Name-Last: Iania
Author-Name: Marco Lyrio
Author-X-Name-First: Marco
Author-X-Name-Last: Lyrio
Author-Name: Rubens Moura
Author-X-Name-First: Rubens
Author-X-Name-Last: Moura
Title: Bond risk premia in emerging markets: evidence from Brazil, China, Mexico, and Russia
Abstract:
We employ an affine term structure model with no-arbitrage restrictions and unspanned risk factors to analyse the global and domestic determinants of bond risk premia in four major emerging markets (Brazil, China, Mexico, and Russia). Among the risk factors, we select national inflation and economic growth, and the country-specific nominal exchange rate against the US dollar as the variables related to the domestic economy. We include a measure of worldwide economic activity, the Market Volatility Index (VIX), and an aggregate price index of commodities in the group of global factors. Our model captures (long-term) movements of realized risk premia and indicates that global economic and financial factors play a relevant role in explaining country-specific bond risk premia dynamics. In contrast, domestic variables carry little explanatory power to rationalize risk premia developments in these four economies. We also provide evidence of heterogeneous responses of country-specific risk premia to global and domestic shocks.
Journal: Applied Economics
Pages: 6721-6738
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1937505
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937505
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Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6721-6738
Template-Type: ReDIF-Article 1.0
Author-Name: Benan Zeki Orbay
Author-X-Name-First: Benan Zeki
Author-X-Name-Last: Orbay
Author-Name: Yigit Aydede
Author-X-Name-First: Yigit
Author-X-Name-Last: Aydede
Author-Name: Narod Erkol
Author-X-Name-First: Narod
Author-X-Name-Last: Erkol
Title: Why does field of study–occupation mismatch have no effect on wages in Turkish labour markets?
Abstract:
The Turkish labour market has undergone remarkable changes in the last two decades. An important development is the rising number of university graduates: The aim of this study is to explore whether the Turkish economy has undergone sufficient technological progress to favour more skilled workers, by analysing the effects of skill mismatch on wages in the Turkish labour market. Using three recent Labour Force Surveys from 2014 to 2016, we show that a significant proportion of university graduates are overeducated for their jobs. This descriptive finding in itself would not necessarily indicate a fundamental education-specific mismatch problem, but a transition in labour markets following rapid structural shifts in a developing economy. However, our findings also show that the most suitable jobs for university graduates may not require specialization in any field of study in Turkey. Both findings imply that supply and demand for skilled workers may be in short-term disequilibrium leading to surpluses in different skills in Turkish labour markets consistent with the recent evidence for constant relative real wages for skilled workers.
Journal: Applied Economics
Pages: 6683-6701
Issue: 58
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1937500
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1937500
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Handle: RePEc:taf:applec:v:53:y:2021:i:58:p:6683-6701
Template-Type: ReDIF-Article 1.0
Author-Name: Michèle Breton
Author-X-Name-First: Michèle
Author-X-Name-Last: Breton
Author-Name: Bertrand Crettez
Author-X-Name-First: Bertrand
Author-X-Name-Last: Crettez
Author-Name: Naila Hayek
Author-X-Name-First: Naila
Author-X-Name-Last: Hayek
Title: Corporate social responsibility, profits, and welfare in a duopolistic market
Abstract:
We consider a two-stage game in a differentiated duopoly, where firms can pursue both a profit and a socially responsible objective. We assume that the maximum willingness-to-pay of consumers increases with the weights given by firms to their social objective, and that the social objective has a negative impact on the firms’ output. In the first stage of the game, the firms decide on the weight of their social objective and, in the second stage, firms compete à la Cournot. We show that accounting for social concerns in the firms’ objective is generally profitable, and that lower output and higher profits can be attained in equilibrium when the impact of firms’ social awareness on consumers’ willingness to pay is above a given threshold that depends on the products substitutability parameter. However, we find that the impact of firms’ social awareness on consumers’ and total welfare is ambiguous.
Journal: Applied Economics
Pages: 6897-6909
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1950907
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1950907
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Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6897-6909
Template-Type: ReDIF-Article 1.0
Author-Name: Lucrezia Fanti
Author-X-Name-First: Lucrezia
Author-X-Name-Last: Fanti
Author-Name: Dario Guarascio
Author-X-Name-First: Dario
Author-X-Name-Last: Guarascio
Author-Name: Matteo Tubiana
Author-X-Name-First: Matteo
Author-X-Name-Last: Tubiana
Title: Skill mismatch and the dynamics of Italian companies’ productivity
Abstract:
This work explores the relationship between labour productivity and skill (mis) match relying on a unique database integrating information at both the firm and the worker level. The analysis is based on a novel skill match indicator providing actual and qualitatively detailed information on the demand/supply of skills. Focusing on a sample of Italian limited liability companies observed during 2012, 2014 and 2017, we show that the ability to match their skills need via new hires is always positively correlated to companies’ labour productivity. This result is robust to the inclusion of variables accounting for sectoral-level training intensity, firm-level recruitment behaviour, a capillary set of firm-level controls and across size classes.
Journal: Applied Economics
Pages: 6790-6803
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1948963
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1948963
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Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6790-6803
Template-Type: ReDIF-Article 1.0
Author-Name: Liming Chen
Author-X-Name-First: Liming
Author-X-Name-Last: Chen
Author-Name: Zhi Zhang
Author-X-Name-First: Zhi
Author-X-Name-Last: Zhang
Author-Name: Ziqing Du
Author-X-Name-First: Ziqing
Author-X-Name-Last: Du
Author-Name: Lingling Deng
Author-X-Name-First: Lingling
Author-X-Name-Last: Deng
Title: Heterogeneous determinants of the exchange rate market in China with structural breaks
Abstract:
This paper identifies a structural break in exchange rate returns from July 2005 to May 2020 using the iterated cumulative sums of squares (ICSS) algorithm. Then we explore the changing effect of determinants on exchange rates based on the time-varying parameter structural Vector AutoRegression (TVP-SVAR) model. Empirically, we find a single break based on exchange rate returns and caused by regime reform. Further analysis suggests a significant change in the shocks to inflation, foreign exchange reserves, oil prices, and short-term interest rates. In addition, the domestic and international determinants of exchange rates are heterogeneous over different periods in the short and long run. In the short run, the relation between exchange rates and inflation, the interest rate, foreign exchange reserves, and oil price, is significantly negative before August 2015. However, since August 2015, the relationship between inflation and exchange rates in China has been positive. Only short-term interest rates are affected by structural changes. This study can guide policy makers in formulating the appropriate exchange rate regime to attain sustainable market efficiency over the long run.
Journal: Applied Economics
Pages: 6839-6854
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949432
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949432
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Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6839-6854
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyu Huang
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Huang
Author-Name: Tao Jin
Author-X-Name-First: Tao
Author-X-Name-Last: Jin
Author-Name: Ji Zhang
Author-X-Name-First: Ji
Author-X-Name-Last: Zhang
Title: Monetary policy, hot money and housing price growth across Chinese cities
Abstract:
We use a dynamic hierarchical factor model to identify the national, regional and local factors of the city-level housing price growth in China. During the zero-lower-bound (ZLB) episode in the U.S., local factors account for 78% of variations in the month-on-month city-level housing price growth. However, as the time horizon extends, the national factor gets a larger variance share, reaching 51% in a half-year horizon. This indicates that the city-level housing price growth in China is more of a national phenomenon in the long run. We then use a VAR model to investigate the driving forces of the national factor and find that monetary policy and hot money shocks affect the national housing price growth significantly. A tightening monetary policy shock has a significant negative impact on the national factor, which lasts for more than 2 years. An increase in hot money inflows causes a significant but transitory rise in the national factor. Moreover, we find that the quantitative easing measure adopted by the U.S. Fed is behind the surge of capital inflows into China.
Journal: Applied Economics
Pages: 6855-6877
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949433
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949433
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Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6855-6877
Template-Type: ReDIF-Article 1.0
Author-Name: Min-Su Chung
Author-X-Name-First: Min-Su
Author-X-Name-Last: Chung
Author-Name: Keunjae Lee
Author-X-Name-First: Keunjae
Author-X-Name-Last: Lee
Title: Women’s pre-marriage income and the division of household labour
Abstract:
This study investigates the effects of women’s economic resources on the division of household labour by employing pre-marriage income as a proxy for resources, rather than post-marriage income. Post-marriage income has been substantially used in the literature; however, it would be the consequence rather than the cause of spousal labour division. Since many married women reduce their working hours to focus on household tasks and their income decreases after marriage, the reverse causality could overestimate the economic power effect on housework allocation. Based on pre-marriage income data of South Korean households, the present study shows that women’s high relative income does not significantly decrease their time and share of housework. Furthermore, wives’ economic superiority after marriage over the husbands seems to increase their household labour because the wives intend to restore gender identity. In conclusion, traditional gender norms have a greater influence on the division of housework than economic efficiency. Therefore, policy efforts must encourage couples to share their housework equally, such as gender-neutral education and paternity protection system.
Journal: Applied Economics
Pages: 6804-6819
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1948964
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1948964
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Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6804-6819
Template-Type: ReDIF-Article 1.0
Author-Name: Yeonjeong Ha
Author-X-Name-First: Yeonjeong
Author-X-Name-Last: Ha
Author-Name: Haejune Oh
Author-X-Name-First: Haejune
Author-X-Name-Last: Oh
Title: Prior beliefs in market efficiency and fund cash flows
Abstract:
This study investigates the effect of fund investors’ prior beliefs on flow-performance relationships. Nonmonotonic inflow- and outflow-performance relationships, with a monotonic relationship in net flows, suggest that more investors exhibit return-chasing behaviour but that some investors behave in a strongly biased manner; these phenomena exist in high-risk funds with extreme performance. With regard to investors’ prior beliefs in market efficiency to the fund performance, inflows and outflows have a monotonic relationship with performance. From these findings, the nonmonotonic relationship can be explained by the biased behaviour resulting from the lack of beliefs in market efficiency.
Journal: Applied Economics
Pages: 6878-6896
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949434
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949434
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Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6878-6896
Template-Type: ReDIF-Article 1.0
Author-Name: Zhao Zhang
Author-X-Name-First: Zhao
Author-X-Name-Last: Zhang
Author-Name: Caoyuan Ma
Author-X-Name-First: Caoyuan
Author-X-Name-Last: Ma
Author-Name: Han Hu
Author-X-Name-First: Han
Author-X-Name-Last: Hu
Author-Name: Hao Li
Author-X-Name-First: Hao
Author-X-Name-Last: Li
Title: Will infectious disease outbreaks cause a decline in investment of real sector firms? Evidence form 2003 SARS outbreak in China
Abstract:
The Novel Coronavirus (COVID-19) outbreak prompts researchers and policy makers to re-evaluate the impact of infectious disease on economy. Taking SARS outbreak in 2003 as a quasi-natural experiment, we examined the impact of infectious diseases on Chinese real sector’s investment through a difference in difference (DID) approach. The empirical results show that after the outbreak of SARS, the investment of China’s real sector firms had increased significantly. This conclusion is verified by several robustness tests. The mechanism tests indicate that the SARS epidemic could increase the investment of real sector firms through two paths. First of all, the outbreak of the epidemic led to dramatic fluctuations in the capital market, then companies shifted their assets from the financial market to the relatively low-risk real sector; additionally, in response to the outbreak of SARS, companies and the government reduced operating costs and fees, resulting in a synergistic effect which also increased investment of the real sector.
Journal: Applied Economics
Pages: 6820-6838
Issue: 59
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1949431
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1949431
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Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6820-6838
Template-Type: ReDIF-Article 1.0
Author-Name: Weilin Liu
Author-X-Name-First: Weilin
Author-X-Name-Last: Liu
Author-Name: Qian Cheng
Author-X-Name-First: Qian
Author-X-Name-Last: Cheng
Title: Global production network, technology spillover, and shock transmission
Abstract:
This study presents a new method to analyse the impact of exogenous shock and its transmission mechanism within the global production network, based on scenarios of the COVID-19 pandemic. We decompose domestic and international technology spillovers and introduce them into an economic growth model to investigate the elasticities of factor inputs and knowledge spillovers through industrial linkages, and eventually estimate a model with spatial specifications. The results from the scenario simulations suggest that the global total output is projected to fall by 3.60% and 8.41% under the V-shaped and L-shaped recovery scenarios, respectively, and that the propagation through input-output linkages is an important channel that causes global economic fluctuations. Economies at the hub of the production network, that is, the United States, China, and Germany, are the most seriously affected. Structural decomposition analysis results indicate that the shortage of intermediate inputs supply is the main driver of output decline, followed by the blockage of technology diffusion, and lastly, the reduction of labour supply.
Journal: Applied Economics
Pages: 7020-7036
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1958140
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1958140
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Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:7020-7036
Template-Type: ReDIF-Article 1.0
Author-Name: Zhao Li
Author-X-Name-First: Zhao
Author-X-Name-Last: Li
Author-Name: Bingyang Lv
Author-X-Name-First: Bingyang
Author-X-Name-Last: Lv
Title: Total factor productivity of Chinese industrial firms: evidence from 2007 to 2017
Abstract:
Accurately measuring industrial total factor productivity (TFP) is considered vital to a country’s economic system. However, in China, the measurement of industrial TFP has been difficult owing to a lack of firm-level data. This study is the first to measure TFP of Chinese industrial enterprises from 2007 to 2017 and makes a rich heterogeneity analysis based on the National Taxation Survey Database (NTSD). Results show that the weighted TFP rises from 3.65 in 2007 to 4.69 in 2017, with an average growth rate of 2.58%. There are obvious differences in industrial TFP among different enterprise sizes, industries, ownership types, export types, and regions, and the growth of TFP tends to have a converge trend. By assessing the ‘Productivity Paradox’ in China, we also find that Chinese exporting manufacturing enterprises are more productive than non-exporting ones.
Journal: Applied Economics
Pages: 6910-6926
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1954592
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1954592
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Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6910-6926
Template-Type: ReDIF-Article 1.0
Author-Name: Sam Williams
Author-X-Name-First: Sam
Author-X-Name-Last: Williams
Author-Name: Alasdair Crookes
Author-X-Name-First: Alasdair
Author-X-Name-Last: Crookes
Author-Name: Karli Glass
Author-X-Name-First: Karli
Author-X-Name-Last: Glass
Author-Name: Anthony J. Glass
Author-X-Name-First: Anthony J.
Author-X-Name-Last: Glass
Title: COVID-19 mortalities in England and Wales and the Peltzman offsetting effect
Abstract:
There are two approaches to measuring COVID-19 deaths – ‘COVID associated deaths’ and ‘excess deaths’. An excess deaths framework is preferable, as there is measurement error in COVID associated deaths, due to issues relating to imperfect information about deaths that are directly attributable to COVID-19. The standard measure of excess deaths (comparison of deaths to a 5-year average) is subject to an omitted variables problem, as it attributes the entirety of the variation in mortality to COVID-19. We propose a method to estimate a refined measure of COVID-19 excess deaths in England and Wales that addresses the omitted impact of the first blanket lockdown. Using the counterfactual, we obtain a first stage estimate of excess deaths. In the second stage, this is decomposed into estimates of a refined measure of COVID-19 excess deaths and the excess mortality impact of lockdown. Our results suggest: (i) a refined estimate of mean weekly COVID-19 excess deaths that is 63% of standard excess deaths; and (ii) a positive net excess mortality impact of the lockdown. We make a case that (ii) is due to the Peltzman offsetting effect, i.e. the intended mortality impact of the lockdown was more than offset by the unintended impact.
Journal: Applied Economics
Pages: 6982-6998
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1955089
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1955089
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Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6982-6998
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim
Author-X-Name-Last: Idi Cheffou
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Hachmi Ben Ameur
Author-X-Name-First: Hachmi
Author-X-Name-Last: Ben Ameur
Title: Conventional and Islamic stock market liquidity and volatility during COVID 19
Abstract:
The coronavirus pandemic has impacted several stock markets worldwide. Among other countries, the US has endured a significant impact of the pandemic, with over 605,000 deaths. This study investigates the effect of COVID-19 on the liquidity and volatility of the US conventional and Islamic stock indexes to assess their efficiency in a linear and nonlinear frammeworks. We use different stock market data (stock prices and trading volumes) and COVID-19 statistics. In particular, we specify liquidity and volatility differently, compute the speed of COVID-19 transmission, rely on robust linear and nonlinear regressions before and during the pandemic to determine different forms of coronavirus effects. The study finds that both liquidity and volatility (regardless of the proxy under consideration) exhibit an important time variation. Second, we find that the variation of contamination and death speeds related to the pandemic has been nonlinearly driving market trading, liquidity, and volatility, suggesting a significant reaction of stock market to exogenous news related to the coronavirus outbreak and inefficiency of these markets. Considering this dependency is crucial to improving the forecasting of stock market dynamics. Further, we find that Islamic funds are not more resilient than conventional funds towards the pandemic.
Journal: Applied Economics
Pages: 6944-6963
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1954595
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1954595
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Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6944-6963
Template-Type: ReDIF-Article 1.0
Author-Name: Ting Liu
Author-X-Name-First: Ting
Author-X-Name-Last: Liu
Author-Name: Lihong Wang
Author-X-Name-First: Lihong
Author-X-Name-Last: Wang
Title: Do competitors benefit from the resignation of politically connected independent directors? Evidence from China
Abstract:
Using a sample of Chinese listed firms in the Shanghai and Shenzhen Stock Exchange during the period of 2012–2017, this paper studies the impact of losing political resources on the competitors’ value by exploiting exogenous shock from the 18th decree which forces politically connected independent directors to resign in China. Our empirical results show that competitors of Chinese listed firms with politically connected independent directors react positively to the resignations of politically connected independent directors. Moreover, when politically affiliated independent directors resign in a Chinese listed firm, its competitors exhibit an increase in accounting performance and an ease of access to government subsidies and external finance. In addition, the above relation holds for a subsample analysis of the resignation of politically connected independent directors in Chinese listed non-state-owned enterprises (non-SOEs) and their non-SOE competitors.
Journal: Applied Economics
Pages: 6999-7019
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1956678
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1956678
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Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6999-7019
Template-Type: ReDIF-Article 1.0
Author-Name: Huayan Zhang
Author-X-Name-First: Huayan
Author-X-Name-Last: Zhang
Author-Name: Yao Li
Author-X-Name-First: Yao
Author-X-Name-Last: Li
Author-Name: Jianqing Ruan
Author-X-Name-First: Jianqing
Author-X-Name-Last: Ruan
Title: Winner or loser: urban work experience and rural labour occupational change after return migration
Abstract:
Recent decades have witnessed return migration of rural labour. Whether urban work experience could help return migrant rural labour engaged in non-agricultural employment and archive career development? In this article, we employ 2014 China Labor Dynamic Survey (CLDS) data set to investigate the effect of outgoing working experience on return migrated labour’s non-agricultural occupational change. This article indicates that, compared with agricultural employment, return migrated labour is more inclined to engage in waged employment than remaining village labour. What’s more, there is an inverted U-shaped relationship between outside working time and non-agricultural employment preference. Based on the above research, this article puts forward relevant policy recommendations.
Journal: Applied Economics
Pages: 6964-6981
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1954596
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1954596
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Template-Type: ReDIF-Article 1.0
Author-Name: Joyce Chigome
Author-X-Name-First: Joyce
Author-X-Name-Last: Chigome
Author-Name: Zurika Robinson
Author-X-Name-First: Zurika
Author-X-Name-Last: Robinson
Title: DETERMINANTS OF TAX CAPACITY AND TAX EFFORT IN SOUTHERN AFRICA: AN EMPIRICAL ANALYSIS
Abstract:
Literature posits that numerous economic and institutional factors limit the amount of taxes that a country can raise. Against this background, the substantive aim of this study was to assess the determinants of tax capacity and tax effort in the SADC. A multi-step procedure was followed to estimate determinants of tax capacity and tax effort using stochastic tax function and unbalanced panel data for 13 SADC countries.11The SADC countries included Angola, Botswana, Eswatini, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe. The study disentangled the error term to estimate the random effects separately from tax effort to capture the time-invariant country-specific effects. Further, tax effort was classified as persistent (long-run) and transient (short-run). The study was able to estimate the determinants of tax effort and to rank each member state or country according to its tax effort. The quantitative analysis indicate that financial deepening, economic development and trade openness influence tax capacity, while corruption and inflation influence tax effort. The SADC region has low persistent tax effort, implying that improving tax administration has superseded tax policy reforms. This result is augmented by the fact that tax legislation efforts were largely successful in tax administration but rather limited given tax policy.
Journal: Applied Economics
Pages: 6927-6943
Issue: 60
Volume: 53
Year: 2021
Month: 12
X-DOI: 10.1080/00036846.2021.1954593
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1954593
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Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6927-6943
Template-Type: ReDIF-Article 1.0
Author-Name: Gert Bijnens
Author-X-Name-First: Gert
Author-X-Name-Last: Bijnens
Author-Name: Jozef Konings
Author-X-Name-First: Jozef
Author-X-Name-Last: Konings
Author-Name: Stijn Vanormelingen
Author-X-Name-First: Stijn
Author-X-Name-Last: Vanormelingen
Title: The impact of electricity prices on European manufacturing jobs
Abstract:
Increased investment in clean electricity in combination with a rising cost of carbon will most likely lead to higher electricity prices. We examine the impact from changing electricity prices on European manufacturing employment and find a negative elasticity for the most electricity-intensive sectors. Since these sectors are unevenly spread across countries and regions, the negative employment impact from increasing electricity prices will also be unevenly spread. Policymakers should be well aware of this and take mitigating actions to ensure a positive public sentiment towards environment-related price increases. (JEL J23, H23, Q28, Q43)
Journal: Applied Economics
Pages: 38-56
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1951647
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1951647
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael T. Belongia
Author-X-Name-First: Michael T.
Author-X-Name-Last: Belongia
Author-Name: Peter N. Ireland
Author-X-Name-First: Peter N.
Author-X-Name-Last: Ireland
Title: Strengthening the second pillar: a greater role for money in the ECB’s strategy
Abstract:
Like most central banks, the European Central Bank makes and implements its monetary policy decisions by adjusting its targets for short-term interest rates in response to information gleaned from a wide range of macroeconomic indicators and projections. Unlike other central banks, however, the ECB also monitors money growth as a ‘cross check’ against the macroeconomic analysis that guides its policies of interest rate management. This paper argues that making further use of this ‘second pillar’ would help the ECB to better achieve its nominal objectives in the present environment of exceptionally low interest rates. By modifying the ‘P-star’ framework – a small-scale model with Quantity Theory foundations – the paper shows how the ECB could set a quantitative ‘reference value’ for Divisia money growth to stabilize nominal spending around a target path, even while its traditional interest rate policies are constrained by the zero lower bound.
Journal: Applied Economics
Pages: 99-114
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1959895
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1959895
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Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:99-114
Template-Type: ReDIF-Article 1.0
Author-Name: Jin Xu
Author-X-Name-First: Jin
Author-X-Name-Last: Xu
Author-Name: Weixian Wei
Author-X-Name-First: Weixian
Author-X-Name-Last: Wei
Title: Would carbon tax be an effective policy tool to reduce carbon emission in China? Policies simulation analysis based on a CGE model
Abstract:
In China’s 2019 VAT reform, the VAT rate for manufacturing was adjusted from 16% to 13%. This inevitably promotes manufacturing production and triggers a substantial increase in carbon emissions. Would carbon tax be an effective policy tool to offset the negative externalities of the VAT reform on carbon emissions? We construct a multi-regional dynamic-recursive computable general equilibrium (CGE) model to evaluate this possibility and to investigate the potential impacts on the economy, energy, and environment arising from this reform. The scenarios set includes the VAT reform policy, a carbon tax, and three combined policies. The results show that while China’s VAT reform is a positive fiscal policy that can boost long-lasting macroeconomic development, it has a negative impact on environmental protection. A carbon tax can significantly curb traditional energy consumption and emissions, but it would hinder economic development. Combined policies yield ‘double dividends’, that is, a long-run increase in macroeconomy and emissions reductions will be achieved, helping China to attain its Intended Nationally Determined Contributions goal. The combination of VAT reform and a stepped carbon tax maintains a more stable economic growth while sustaining carbon emission abatement.
Journal: Applied Economics
Pages: 115-134
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1961119
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1961119
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Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:115-134
Template-Type: ReDIF-Article 1.0
Author-Name: Tianheng Wang
Author-X-Name-First: Tianheng
Author-X-Name-Last: Wang
Title: The peer effects of preschool: evidence from China’s middle school
Abstract:
The paper investigates the impact of peer enrolment in preschool on students’ cognitive and noncognitive outcomes in China’s middle schools and explores the potential mechanisms through which the peer effects may operate. Using the exogenous variation in peer preschool enrolment across classes within schools, the study finds that a higher proportion of classmates who have preschool experience consistently has positive impacts on students’ academic achievement. I also find that peer preschool enrolment has spillover effects on students’ noncognitive outcomes. The mechanism analysis reveals that the peer effects may work through inter-student relationships, class and school atmosphere, and behaviours of students’ friends.
Journal: Applied Economics
Pages: 1-18
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1951442
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1951442
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Template-Type: ReDIF-Article 1.0
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Author-Name: Salaheddine El Omari
Author-X-Name-First: Salaheddine
Author-X-Name-Last: El Omari
Title: What determines the dependence between stock markets - crisis or financial and economic fundamentals?
Abstract:
This paper investigates the economic and financial fundamentals that determine the dynamic linkage between Qatar and a set of selected international stock markets. To this end, we used different dynamic copula constructions to extract the series of time-varying degrees of dependence. Then, by estimating a quantile regression, we identified several economic and financial variables that significantly contribute to explaining the dynamic patterns of dependence among the studied stock markets. These include the returns of the Qatar stock market, crude oil prices, gold prices, the volatility of the S&P 500 index, and the world economic policy uncertainty index. The results obtained show that the fluctuations in these variables significantly influence the structure of dependence between the studied stock markets.
Journal: Applied Economics
Pages: 19-37
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1951443
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1951443
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Handle: RePEc:taf:applec:v:54:y:2022:i:1:p:19-37
Template-Type: ReDIF-Article 1.0
Author-Name: Navarat Temsumrit
Author-X-Name-First: Navarat
Author-X-Name-Last: Temsumrit
Title: Democracy, institutional quality and fiscal policy cycle: evidence from developing countries
Abstract:
Economists usually prescribe countercyclical fiscal policies to stabilize economies: government spending should increase during economic downturns and decrease during booms. Yet, empirical research has documented procyclical fiscal policy in several democratic developing countries. Using an updated dataset of 63 developing countries from 1980 to 2013, this article robustly shows procyclical fiscal policy in democratic and non-democratic developing countries. The essence of this paper is controlling endogeneity issues by using the generalized method of moment (GMM) for the dynamic panel data model and investigating the interaction between democracy and the quality of democratic institutions in affecting the fiscal policy cycle. This article finds that an improvement in the quality of institutions plays a vital role in restraining procyclical fiscal policy and these effects are more prominent in democratic countries than non-democratic ones.
Journal: Applied Economics
Pages: 75-98
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1959894
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1959894
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Template-Type: ReDIF-Article 1.0
Author-Name: Dweepobotee Brahma
Author-X-Name-First: Dweepobotee
Author-X-Name-Last: Brahma
Author-Name: Debasri Mukherjee
Author-X-Name-First: Debasri
Author-X-Name-Last: Mukherjee
Title: Early warning signs: targeting neonatal and infant mortality using machine learning
Abstract:
This article uses a nation-wide household survey data from India and identifies important predictors of neonatal and infant mortality using multiple machine learning (ML) techniques. The consensus on the leading predictors from the interpretable ML algorithms (that we use) serve as early warning signs of neonatal and infant mortality. This enables us to identify a ‘high-mortality risk’ group of mothers and infants – an important goal of India’s ‘India Newborn Action Plan’. This high-risk group comprises firstborns, mothers with prior deaths or several previous births, newborns suffering from complicated deliveries, small size at birth and unvaccinated infants. We identify early newborn care, folic acid supplements and conditional cash transfer (Janani Suraksha Yojana) as the most effective policy interventions. Given the imbalanced nature of the dependent variable (‘events’ being rarer than ‘non-events’) we use additional ML methods (along with the commonly used ones) that are tailor-made for ‘rare-event’ prediction for robustness checks. We also use an evaluation measure called Area under Precision Recall Curve that is tailored for measuring prediction accuracy with imbalanced data. Our analysis sheds light on policy relevance and suggests some new policy prescriptions such as close monitoring of at-risks babies including females and those with small birth-size.
Journal: Applied Economics
Pages: 57-74
Issue: 1
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1958141
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1958141
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Template-Type: ReDIF-Article 1.0
Author-Name: Richard Grabowski
Author-X-Name-First: Richard
Author-X-Name-Last: Grabowski
Author-Name: Sharmistha Self
Author-X-Name-First: Sharmistha
Author-X-Name-Last: Self
Title: Technology in agriculture and structural change: an Asian perspective
Abstract:
Structural change is important in the overall development process. This paper seeks to examine how productivity growth in agriculture influences this process. In particular, technology in agriculture is divided into two types: labour using, land saving (biochemical) and labour saving, land using (mechanical). Some have argued that only labour saving (mechanical) technology promotes the shift of labour into manufacturing, not labour using (biochemical) technology. However, estimations utilizing data from 10 Asian nations indicate that both types of technologies promote structural change. Thus, investments in such technologies will promote structural change. Additional results indicate that labour productivity growth in services is complementary to structural change. In addition, openness to trade and foreign direct investment and diversification away from natural resource abundance as well as avoiding exchange rate overvaluation also promote structural change.
Journal: Applied Economics
Pages: 145-154
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963660
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963660
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Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:145-154
Template-Type: ReDIF-Article 1.0
Author-Name: Zhige Wu
Author-X-Name-First: Zhige
Author-X-Name-Last: Wu
Author-Name: Alfons Weersink
Author-X-Name-First: Alfons
Author-X-Name-Last: Weersink
Author-Name: Alex Maynard
Author-X-Name-First: Alex
Author-X-Name-Last: Maynard
Title: Fuel-feed-livestock price linkages under structural changes
Abstract:
The large-scale diversion of crops into mandates-driven biofuels since early 2000s, has raised concerns about impacts of biofuel policies on food prices. This study examines crude oil-corn-livestock dynamic linkages from January 1987 until December 2019 in Ontario, Canada. A significant structural break is identified in March 2011 as biofuel policy impacts become fully implemented and splits the three-decade period into pre- and post-break sub-periods. A nonlinear autoregressive distributed lag (NARDL) approach is employed since it allows prices to be tied by asymmetric relationships both in the short- and long-run. The NARDL model bounds test results indicate that crude oil and corn prices have a long-run connection with livestock prices in both sub-periods. In the post-break period, corn price has an asymmetric effect on cattle price in the long-run, with negative shocks in the corn price leading to a greater intensity on the cattle price than positive shocks. The presence of short-run asymmetry is evident in the impacts of crude oil price on both cattle and hog prices. However, the above asymmetric effect is insignificant in the pre-break period.
Journal: Applied Economics
Pages: 206-223
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1965082
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1965082
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Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:206-223
Template-Type: ReDIF-Article 1.0
Author-Name: Bo Cheng
Author-X-Name-First: Bo
Author-X-Name-Last: Cheng
Author-Name: Baoyin Qiu
Author-X-Name-First: Baoyin
Author-X-Name-Last: Qiu
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Author-Name: Hongxia Zhang
Author-X-Name-First: Hongxia
Author-X-Name-Last: Zhang
Title: Does a green tax impact a heavy-polluting firm’s green investments?
Abstract:
By leveraging the quasi-natural experiment of the passage of the Environmental Protection Tax Law in late 2016 in China that imposed a pollution tax (green tax) on firms, we examine the impact of this tax on the green investments of heavy-polluting firms. Our difference-in-differences results show that the green tax enhances green investments of heavy-polluting firms. Specifically, firm-level green investments of heavy-polluting firms increased by approximately 38% after the green tax than before the green tax relative to an average firm. The findings are robust to a propensity score matching method, fixed-effects models, placebo tests, dynamic effect analysis, and after excluding alternative explanations. Additional analysis suggests that the positive effect of the green tax on green investments is more pronounced for large firms, state-owned firms, and firms with high analyst following. Collectively, we find a green tax policy contributes to green investments.
Journal: Applied Economics
Pages: 189-205
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963663
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963663
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Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:189-205
Template-Type: ReDIF-Article 1.0
Author-Name: Dinkar Kuchibhotla
Author-X-Name-First: Dinkar
Author-X-Name-Last: Kuchibhotla
Title: Multi-dimensional inequality in health: evidence from India
Abstract:
Estimation of multi-dimensional welfare measures are gaining popularity. Health is multi-dimensional and efforts to estimate multi-dimensional health inequality are fairly nascent. I estimate inequality in health using a normative index and decompose it into component parts. Inequality increases as health attributes become complementary. Inequalities at the state level as well as by caste and gender, are negatively associated with the level of social and economic development.
Journal: Applied Economics
Pages: 224-233
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1965532
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1965532
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Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:224-233
Template-Type: ReDIF-Article 1.0
Author-Name: Johanna Scholz
Author-X-Name-First: Johanna
Author-X-Name-Last: Scholz
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Using a matching decomposition to examine the gender technology gap in Tanzanian agriculture
Abstract:
The promotion of gender equality in access to productive resources relies on multiple valid arguments. However, whether equal resource endowment would result in equal agricultural productivity is controversial. Using panel data from Tanzania, we examine the agricultural technology levels of male and female managed plots, and find that female farmers operate on a significantly lower technology level than their male counterparts. Thus, even if female farmers used the same amount of agricultural inputs and were equally efficient as male farmers, they would probably still attain lower yields. We employ a matching and decomposition approach to analyse whether the difference in technology between male and female managed plots originates from observations outside the common support or different distributions of productive resources, household characteristics, or crop choice within the common support. We find that most plots under female and male management are well comparable and fall into the common support, but different distributions of considered characteristics cannot sufficiently explain the observed differences in levels of technology among female and male farmers. Only among the few farmers that apply inorganic fertilizer, female and male farmers work on a similar technology level.
Journal: Applied Economics
Pages: 155-169
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963661
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963661
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Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:155-169
Template-Type: ReDIF-Article 1.0
Author-Name: Victor Lapshin
Author-X-Name-First: Victor
Author-X-Name-Last: Lapshin
Title: Model-free nonparametric bounds for zero-coupon interest rates in bond markets without the no arbitrage principle
Abstract:
Real-world market quotes of bonds can sometimes contradict the no arbitrage principle within the discounted cash flow model. This makes some kinds of no-arbitrage-based analyses impossible, e.g., inferring the bounds for the term structure of interest rates. Instead of using a more sophisticated model to account for pricing peculiarities, we propose a replacement for the no arbitrage principle. While being theoretically plausible, it does not get contradicted by the data – thus, we can infer the same kind of term structure bounds from it, even given the contradictions with the no arbitrage principle. Using a dataset of Russian sovereign bond quotes, we show that the no arbitrage inconsistency problem arises in 10–20% of cases and that the proposed approach successfully overcomes it.
Journal: Applied Economics
Pages: 135-144
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963659
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963659
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Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:135-144
Template-Type: ReDIF-Article 1.0
Author-Name: Jiaman Li
Author-X-Name-First: Jiaman
Author-X-Name-Last: Li
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: Do pollutant discharge fees affect labor demand? evidence from china’s industrial enterprises
Abstract:
The tradeoff between employment and the environment has become an increasingly important topic. By employing two enterprise-level datasets and a city-level dataset in China for the period 1999–2012, this study investigates the influence of pollutant discharge fees on the labour demand in manufacturing enterprises. Besides, considering the significant differences among cities, industries, and individuals in China, we perform a series of heterogeneity analysis. The study also explores the mediation impact mechanism from the manufacturing cost perspective, i.e. labour cost effect, energy cost effect, and equipment cost effect. The estimated results show that: (1) The more stringent pollutant discharge fees can significantly reduce the labour demand of Chinese manufacturing enterprises; for each 1% increase in the price of pollutant discharge fees, labour demand decreases by approximately 0.264%; (2) labour demand for cities with a low proportion of secondary industries, industries with low pollution intensity, and domestic private-owned enterprises tend to be influenced more by pollutant discharge fees; and (3) the labour cost effect and energy cost effect are both significant mediators, while the equipment cost effect is not significant. The above findings can provide feasible policy implications for improving environmental protection taxes.
Journal: Applied Economics
Pages: 170-188
Issue: 2
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963662
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Handle: RePEc:taf:applec:v:54:y:2022:i:2:p:170-188
Template-Type: ReDIF-Article 1.0
Author-Name: Hande Küçük
Author-X-Name-First: Hande
Author-X-Name-Last: Küçük
Author-Name: Pınar Özlü
Author-X-Name-First: Pınar
Author-X-Name-Last: Özlü
Author-Name: Çağlar Yüncüler
Author-X-Name-First: Çağlar
Author-X-Name-Last: Yüncüler
Title: Decomposition of bank loans and economic activity in TURKEY
Abstract:
We examine the empirical link between loans and economic activity in Turkey with a focus on the components of loans by borrower (household/business) and by purpose of use (housing/personal) as well as currency of denomination (domestic/foreign). We estimate a separate VAR model for each type of loan and each GDP expenditure item to analyse whether different types of loans have different effects on economic activity and through what channels. According to our empirical results, credit shocks have statistically significant impact on economic activity, especially within the first two quarters. We find that shocks that expand household and TL-denominated business loans by the same rate have quite similar effects on private consumption, final domestic demand and GDP, while household loans has a much smaller impact on investment compared to business loans. While shocks to FX-denominated business loans have significant effect on total investment, they have much weaker effect on private consumption and GDP. The effect of housing loans on investment is found to be comparable to that of business loans, suggesting strong feedback between demand for housing and construction investment. We investigate the robustness of findings to alternative data samples, as well as some alternative identifying restrictions.
Journal: Applied Economics
Pages: 249-279
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1950906
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1950906
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Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:249-279
Template-Type: ReDIF-Article 1.0
Author-Name: Donata Favaro
Author-X-Name-First: Donata
Author-X-Name-Last: Favaro
Author-Name: Dario Sciulli
Author-X-Name-First: Dario
Author-X-Name-Last: Sciulli
Title: Female long-term labour market outcomes: the role of early-life abilities and education
Abstract:
We study how early-life cognitive skills, non-cognitive abilities, and family characteristics influence educational choices and affect later employment outcomes and wages. The analysis was carried out on a cohort of UK females observed at different life stages by adopting the British National Child Development Study database. Our findings provide evidence of how early-life abilities and family characteristics affect both the educational attainment and later labour market outcomes of female workers. However, we found that educational levels interact with early-life abilities, productive characteristics in general, and other characteristics, giving rise to different employment outcomes and income prospects conditioned on educational attainment. Occupational outcomes and wages of low-educated women are more sensitive to factors that are not strictly linked to productivity.
Journal: Applied Economics
Pages: 340-353
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962510
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962510
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Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:340-353
Template-Type: ReDIF-Article 1.0
Author-Name: Simeon Nanovsky
Author-X-Name-First: Simeon
Author-X-Name-Last: Nanovsky
Title: A new test for optimum currency area with an application to the Central and Eastern European countries
Abstract:
This research introduces a new test for optimum currency area that is based on synchronization of monetary policy recommendations. The main advantage over the more traditional synchronization of business cycles is that it takes into account two known determinants of monetary policy: inflation and the output gap. As an application, the test is applied to the EU economies with a particular focus on the Central and Eastern European Countries. Some of these countries have recently joined the euro area, some are the members of ERM II, and the rest are debating whether to fulfill the convergence criteria of adopting the euro. The main findings are that within the last few years the current non-euro area members (with the exception of Bulgaria and Romania) fit the euro area as well as the core euro area countries.
Journal: Applied Economics
Pages: 354-373
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962512
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962512
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Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:354-373
Template-Type: ReDIF-Article 1.0
Author-Name: Dheeraj Sharma
Author-X-Name-First: Dheeraj
Author-X-Name-Last: Sharma
Author-Name: Shweta Ahalawat
Author-X-Name-First: Shweta
Author-X-Name-Last: Ahalawat
Author-Name: Archana Patro
Author-X-Name-First: Archana
Author-X-Name-Last: Patro
Author-Name: Patanjal Kumar
Author-X-Name-First: Patanjal
Author-X-Name-Last: Kumar
Title: Spot market and derivative segment of equity in India
Abstract:
The foremost objective of the manuscript is to predict the volatility and causality between spot and derivative segment of equity in India and also to determine long run relationship between the two. Monthly time-series data of 15 years have been taken, from 2003 to 2019 (pre- and post-financial crisis 2008). The unit root test, GARCH model, Granger Causality test under VECM framework have been smeared to infer the volatility and causality between the spot Nifty and Nifty futures. Johansen co-integration test and VECM have been used to determine the long and short run relationship between the two time series. Regression has been applied to determine the impact of spot market on Stock Futures. The outcomes depict that the two variables have positive impact and statistically significant in the short and long run. There exist fluctuations, volatility and lead lag relationship between the two which will help investors and policymakers to take well-formed decisions.
Journal: Applied Economics
Pages: 326-339
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962509
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962509
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Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:326-339
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Abubakr Naeem
Author-X-Name-First: Muhammad Abubakr
Author-X-Name-Last: Naeem
Author-Name: Saba Qureshi
Author-X-Name-First: Saba
Author-X-Name-Last: Qureshi
Author-Name: Mobeen Ur Rehman
Author-X-Name-First: Mobeen Ur
Author-X-Name-Last: Rehman
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Title: COVID-19 and cryptocurrency market: Evidence from quantile connectedness
Abstract:
This study quantifies the spillover effects among seven cryptocurrencies to explore the spillover characteristics of seven cryptocurrencies, namely, Bitcoin, Ethereum, Ripple, Litecoin, Monero, Stellar, and NEM. The connectedness networks of returns are based on standard VAR and quantile VAR spillovers. In addition, the framework focuses on intact, pre-, and post-COVID-19 crisis sub-sample periods. Our results highlight that Bitcoin, Litecoin, and Ripple are the dominant transmitters to return spillover. The strongest interconnection is found for Bitcoin/Litecoin and Ripple/Sellar pair. Interestingly, Ethereum is the unvarying recipient in the system and is influenced by most of the cryptocurrencies. Further, NEM exhibits no connection with any of the cryptocurrency in the network acting as a potential diversifier. The quantile spillovers suggest increased intensity of connectedness at right and left tails. The sub-sample analysis confirms the low network integration across the cryptocurrencies during pre-COVID period. Finally, the post-COVID period indicates tangled clusters across the cryptocurrencies. The analysis provides contrasting results as obtained in the pre-analysis phase. Implications for investors and policymakers are highlighted in the study.
Journal: Applied Economics
Pages: 280-306
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1950908
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1950908
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Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:280-306
Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Chen-Min Pan
Author-X-Name-First: Chen-Min
Author-X-Name-Last: Pan
Title: Do financial inclusion and R&D matter? Exploring the effect of uncertainty on economic performance
Abstract:
Using a dataset that includes 24 developing and developed countries for the period 1984–2017, this research adopts outstanding deposits with commercial banks to GDP ratio and research and development (R&D) expenditure to GDP ratio as main proxies of financial inclusion and R&D, respectively. The empirical results suggest that promoting financial inclusion or R&D can offset the harmful effects of uncertainty on economic performance and that the impact of R&D with uncertainty is statistically significantly greater than the impact of financial inclusion with uncertainty. Moreover, our subsample analyses indicate that the mitigating effects of financial inclusion and R&D exist in nonfinancial crisis periods, developed countries, and the European region. To address endogeneity concerns, we employ six instrumental variables in a two-stage least squares regression (IV-2SLS). Our findings have useful policy implications to government for dealing with economic policy uncertainty for the economy’s benefit.
Journal: Applied Economics
Pages: 307-325
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1950909
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1950909
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Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:307-325
Template-Type: ReDIF-Article 1.0
Author-Name: Yusuf Ömür Yılmaz
Author-X-Name-First: Yusuf Ömür
Author-X-Name-Last: Yılmaz
Author-Name: Gul Ipek Tunc
Author-X-Name-First: Gul Ipek
Author-X-Name-Last: Tunc
Title: The Macroeconomic Effects of Positive Trend Inflation in a Small Open Economy
Abstract:
The existing New Keynesian open economy literature tends to make the simplifying assumption that there is no trend inflation. In this paper, we reformulate the standard open economy model to account for positive trend inflation. We then employ the model to understand the effects of macroeconomic shocks in a small open economy when trend inflation is positive. Our main finding is that allowing for trend inflation significantly affects the dynamics of the model through real exchange rate dynamics rather than the slope of the New Keynesian Philips Curve. Specifically, higher trend inflation induces modestly more persistent real exchange rates’ responses to the shocks. Further incorporation of trend inflation in an open economy enables us to discuss the Purchasing Power Parity and Delayed Overshooting Puzzles.
Journal: Applied Economics
Pages: 234-248
Issue: 3
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1876208
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1876208
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Handle: RePEc:taf:applec:v:54:y:2022:i:3:p:234-248
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Furceri
Author-X-Name-First: Davide
Author-X-Name-Last: Furceri
Author-Name: Fabio Mazzola
Author-X-Name-First: Fabio
Author-X-Name-Last: Mazzola
Author-Name: Pietro Pizzuto
Author-X-Name-First: Pietro
Author-X-Name-Last: Pizzuto
Title: Regional inequalities, economic crises and policies: an international panel analysis
Abstract:
This paper examines the effects of economic downturns on regional inequalities. In a sample of 25 OECD countries for 1990–2014 period, we show that economic downturns are associated with a significant and long-lasting reduction in regional inequalities. Expansionary fiscal policy as well as higher share of the European development (cohesion) funds facilitate the response of lagging regions to negative nation-wide shocks, contributing to further stimulate the reduction in regional disparities. Additional evidence suggests that the effect of downturns tends to be larger in economies with a higher initial level of regional disparities in unemployment and human capital endowment.
Journal: Applied Economics
Pages: 484-505
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963414
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963414
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Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:484-505
Template-Type: ReDIF-Article 1.0
Author-Name: Nader AlKathiri
Author-X-Name-First: Nader
Author-X-Name-Last: AlKathiri
Title: Labour productivity growth and convergence in manufacturing: A nonparametric production frontier approach
Abstract:
Labour productivity growth in manufacturing is decomposed into technical efficiency change (movement towards or away from the frontier), technological progress (shifts in the production frontier), and capital accumulation (movement along the frontier) using a nonparametric production frontier method. The results suggest that labour productivity growth is primarily driven by capital accumulation and to a lesser extent technological progress, while technical efficiency is deteriorating over the period 1995–2014. We find that technological progress appears to be non-neutral, as the world manufacturing production frontier expands only at higher capital intensities, benefiting highly industrialized nations. We also find evidence of unconditional convergence in labour productivity for the manufacturing sector. Capital accumulation is the main driver of the observed unconditional convergence, whereas technological change is contributing to divergence rather than convergence. The findings suggest that expanding manufacturing activities through capital accumulation is essential for developing countries to catch-up with developed countries.
Journal: Applied Economics
Pages: 406-429
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963410
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963410
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Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:406-429
Template-Type: ReDIF-Article 1.0
Author-Name: Xiang Wu
Author-X-Name-First: Xiang
Author-X-Name-Last: Wu
Author-Name: Liang Wu
Author-X-Name-First: Liang
Author-X-Name-Last: Wu
Author-Name: Shujuan Chen
Author-X-Name-First: Shujuan
Author-X-Name-Last: Chen
Title: Long memory and efficiency of Bitcoin during COVID-19
Abstract:
The COVID-19 pandemic has raised great attention to the study of its impacts on Bitcoin. We focus on the impacts of the COVID-19 pandemic on the long memory and efficiency of Bitcoin. There exist a few studies on this topic. These studies all ignore the issues of heavy tails and extreme events during COVID-19, which are obstacles to obtaining the reliable continuous time-varying results of long memory and efficiency. After considering the two issues, we first obtain the reliable continuous time-varying results during COVID-19 via sliding window and estimation of Hurst exponent. The other four markets (Ethereum, Binance Coin, S&P 500, and gold spot) are also analysed for comparison. Bitcoin results show that the Bitcoin market keeps efficient during the pandemic and the heavy tails become weaker after the onset of the pandemic. Results of the comparison study show that Bitcoin has similar efficiency with spot gold and is more efficient than Ethereum, Binance Coin, and S&P 500 during the pandemic. This study contributes to current rare literature on the long memory and efficiency of cryptocurrency during COVID-19.
Journal: Applied Economics
Pages: 375-389
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962513
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962513
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Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:375-389
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Dore
Author-X-Name-First: Timothy
Author-X-Name-Last: Dore
Author-Name: Traci Mach
Author-X-Name-First: Traci
Author-X-Name-Last: Mach
Title: Marketplace lending and consumer credit outcomes: evidence from prosper
Abstract:
In 2005, Prosper launched the first peer-to-peer lending website in the US, allowing for consumers to apply for and receive loans entirely online. To understand the effect of this new credit source, we match application-level data from Prosper to credit bureau data. Post application, borrowers’ credit scores increase and their credit card utilization rates fall relative to non-borrowers in the short run. In the longer run, total debt levels for borrowers are higher than those of non-borrowers. Despite increased debt levels relative to non-borrowers, delinquency rates for borrowers are significantly lower.
Journal: Applied Economics
Pages: 390-405
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1962514
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962514
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Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:390-405
Template-Type: ReDIF-Article 1.0
Author-Name: Tongwei Qiu
Author-X-Name-First: Tongwei
Author-X-Name-Last: Qiu
Author-Name: S.T. Boris Choy
Author-X-Name-First: S.T. Boris
Author-X-Name-Last: Choy
Author-Name: Biliang Luo
Author-X-Name-First: Biliang
Author-X-Name-Last: Luo
Title: Is small beautiful? Links between agricultural mechanization services and the productivity of different-sized farms
Abstract:
Developing agricultural mechanization services is commonly regarded as an important approach to pushing smallholder farmers engaging in modern agricultural production in China. However, whether smallholder farmers can benefit more from agricultural mechanization services is ambiguous. Using household-level data collected from Henan province in China, this study investigates the effect of agricultural mechanization services on the productivity of different-sized farms. The results indicate that the productivity of medium farms benefits more from agricultural mechanization services rather than small and large farms. Further analysis shows that medium farms are more likely to adopt agricultural mechanization services and reveals a positive relationship between the adoption of agricultural mechanization services and farm productivity. The higher rate of adoption of agricultural mechanization services and the related higher productivity of medium farms can be explained by the tendency of large farms to invest in self-owned agricultural machinery and the likelihood that small farms will input more labourers in wheat production. Although Chinese governments aim to develop the social service in agriculture for smallholder farmers, it seems that they do not get positive responses.
Journal: Applied Economics
Pages: 430-442
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963411
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963411
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Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:430-442
Template-Type: ReDIF-Article 1.0
Author-Name: Jia Liu
Author-X-Name-First: Jia
Author-X-Name-Last: Liu
Author-Name: Xuefeng Pan
Author-X-Name-First: Xuefeng
Author-X-Name-Last: Pan
Author-Name: Yuanyu Qu
Author-X-Name-First: Yuanyu
Author-X-Name-Last: Qu
Author-Name: Chenyu Wang
Author-X-Name-First: Chenyu
Author-X-Name-Last: Wang
Author-Name: Weixing Wu
Author-X-Name-First: Weixing
Author-X-Name-Last: Wu
Title: Air pollution, human capital and corporate social responsibility performance: evidence from China
Abstract:
This study examines the impact of air pollution on a firm’s adherence to the principles of corporate social responsibility (CSR), and the role of human capital in this relationship. Basing our analysis on a sample of listed companies in China between 2014 and 2017, we employ regression discontinuity design (RDD) and the two-stage instrumental variable method (IV-2SLS) in determining that air pollution has a significant, negative impact on CSR performance. This negative relationship is more pronounced in companies that are subject to mandatory CSR disclosure requirements, compared to those required to make only voluntary disclosures. In addition, further analysis demonstrates that executives with an overseas background, or with a working experience of finance, choose to work in cities with superior air quality, enhancing their companies’ CSR credentials. Moreover, the increase in the total labour force in these cities, as a result of better air quality, motivates local companies to improve their CSR performance to retain and attract higher calibre employees. Our study provides original evidence that air pollution generates negative economic externalities, and can alter firm behaviour, through the medium of human capital.
Journal: Applied Economics
Pages: 467-483
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963413
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963413
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Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:467-483
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Francois Gajewski
Author-X-Name-First: Jean-Francois
Author-X-Name-Last: Gajewski
Author-Name: Luc Meunier
Author-X-Name-First: Luc
Author-X-Name-Last: Meunier
Author-Name: Sima Ohadi
Author-X-Name-First: Sima
Author-X-Name-Last: Ohadi
Title: Do sources of money matter in risk-taking behaviour?
Abstract:
Assuming that money is fungible, income and wealth affect risk aversion. In the present study, we investigate whether the source of money affects risk-related decision-making. We use the percentage of temporary income and sources of income to capture the heterogeneity of risk-taking behaviour. The results indicate the significant and robust role of the temporary portion of income in explaining risk-taking behaviour: a 1% increase in temporary income corresponds to up to a 12.7% increase in risk-taking. Furthermore, having multiple sources of money is associated with greater risk-taking, and the origin of money matters with regards to risk-taking.
Journal: Applied Economics
Pages: 443-466
Issue: 4
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963412
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963412
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Handle: RePEc:taf:applec:v:54:y:2022:i:4:p:443-466
Template-Type: ReDIF-Article 1.0
Author-Name: Abebayehu Girma Geffersa
Author-X-Name-First: Abebayehu Girma
Author-X-Name-Last: Geffersa
Author-Name: Frank Wogbe Agbola
Author-X-Name-First: Frank Wogbe
Author-X-Name-Last: Agbola
Author-Name: Amir Mahmood
Author-X-Name-First: Amir
Author-X-Name-Last: Mahmood
Title: Modelling technical efficiency and technology gap in smallholder maize sector in Ethiopia: accounting for farm heterogeneity
Abstract:
This paper examines the effect of farm heterogeneity on the technical efficiency and technology gap of maize production in Ethiopia. We utilize comprehensive household-level data in 2010, 2013 and 2015 for three major maize producing regions in Ethiopia. We estimate technical efficiency using a bias-corrected stochastic meta-frontier model that accounts for technological differences and the consistent ‘true’ fixed-effects stochastic frontier model, which disentangles unobservable farm heterogeneity from inefficiency. We find that maize farmers produce below their potential output with the technology available and the prevailing environmental conditions in their regions. The results show that Oromia has the highest technical efficiency, followed by SNNP, and Benishangul-Gumuz is the least efficient in maize production. These findings generate important policy implications for achieving increased technical efficiency and reduce the technology gap in maize production. Moreover, the level of education, age of household head, family size, household wealth, and off-farm employment and extension services significantly affect technical efficiency in maize production in Ethiopia.
Journal: Applied Economics
Pages: 506-521
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1963415
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1963415
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Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:506-521
Template-Type: ReDIF-Article 1.0
Author-Name: Giovanni Bernardo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Bernardo
Author-Name: Massimo Ruberti
Author-X-Name-First: Massimo
Author-X-Name-Last: Ruberti
Author-Name: Roberto Verona
Author-X-Name-First: Roberto
Author-X-Name-Last: Verona
Title: Image is everything! Professional football players' visibility and wages: evidence from the Italian Serie A
Abstract:
Sport is one of the most popular forms of entertainment and its worldwide spread has turned athletes into icons who have economic impact and international visibility as global brands. In our paper we would like to show how marketing strategies in the sports industry, amplified by social networks, have put the athlete at the centre of media attention In the world of football, football players have come to play a key role, since their image is the face of their clubs, and this can affect the number of digital fans, that is, fans who are not bound to a club by constant passion but who can change team depending on the athletes that have been lined up. This could explain why the teams playing in the main football championships are offering higher and higher wages in the attempt to get hold of the best talents around. Based on a dataset with information about over 1,200 athletes who have taken part over five seasons of the Italian Serie A, we try to measure the impact of football players’ popularity on salary-setting mechanisms, in the attempt to understand the impact of such variables on football players’ athletic qualities and performance.
Journal: Applied Economics
Pages: 595-614
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967863
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967863
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Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:595-614
Template-Type: ReDIF-Article 1.0
Author-Name: Saejoon Kim
Author-X-Name-First: Saejoon
Author-X-Name-Last: Kim
Title: Time-series residual momentum strategies
Abstract:
We find that the conventional time-series momentum strategy can be revised in two ways to deliver enhanced excess return performance that are reminiscent of the advancements for the cross-sectional momentum strategy. First, we explore the applicability of the residual return for time-series momentum and find that it opens a door for constructing new improved time-series momentum strategies. Second, we examine the pertinence of the auto-covariance property of returns, which is the defining characteristic of time-series momentum, for asset allocation which has almost universally been identified with the equal-weighted one in the literature. We discover that consistent and persistent performance enhancements are earned by both approaches for the industry portfolios.
Journal: Applied Economics
Pages: 580-594
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967862
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967862
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Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:580-594
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Martínez-Santos
Author-X-Name-First: Fernando
Author-X-Name-Last: Martínez-Santos
Author-Name: Zoraida Frias
Author-X-Name-First: Zoraida
Author-X-Name-Last: Frias
Author-Name: Álvaro Escribano
Author-X-Name-First: Álvaro
Author-X-Name-Last: Escribano
Title: What drives spectrum prices in multi-band spectrum markets? An empirical analysis of 4G and 5G auctions in Europe
Abstract:
Spectrum auctions have recently experienced increased sophistication in the allocation of multi-band frequencies, with efficiency issues becoming much more complex in such scenarios. This empirical analysis seeks to identify the drivers of auction prices associated with 4G and 5G technologies in seven European countries during the period 2008–2019. This study draws on a purpose-built dataset including auction design, spectrum frequency bands at auction, bandwidth supplied to mobile operators, and characteristics of the market structure. We use panel data techniques to identify the main determinants of European spectrum auction prices in the presence of substitutability and complementarities exhibited by the preferences in multi-band spectrum markets. In this regard, we find that mobile operators pay lower auction prices if there are alternative frequency bands used for previous mobile standards and that operators perceive as substitutes. Furthermore, auction prices are higher in more concentrated markets, when more licenses are auctioned and when the CCA format is used (possibly due to the existence of complementarities).
Journal: Applied Economics
Pages: 536-553
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967277
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967277
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Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:536-553
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Keser
Author-X-Name-First: Ahmet
Author-X-Name-Last: Keser
Author-Name: İbrahim Çütcü
Author-X-Name-First: İbrahim
Author-X-Name-Last: Çütcü
Author-Name: Mehmet Vahit Eren
Author-X-Name-First: Mehmet Vahit
Author-X-Name-Last: Eren
Title: Does country-level governance matter for national development? An analysis on the founding states of Turkic council
Abstract:
This study aims to examine if there is a long-term relationship between the participation of ‘country-level governance’ and ‘national development’ through the data of founding countries of the Cooperation Council of Turkish Speaking States (Turkic Council)? The hypothesis of there is a significant long-term relationship between country-level governance and national development was tested via the panel data analysis of four Turkic countries: Azerbaijan, Kirgizstan, Kazakhstan, and Turkey. The compounds of the ‘Worldwide Governance Indicators’ were used as the independent variable, and ‘Human Development Index’ as the dependent variable. A Panel Causation Test was conducted to investigate if there are long-term co-integration and causation between country-level governance and national development. Our results found that there is significant causation between the country-level governance indicators of ‘Voice and Accountability’ and ‘Government Effectiveness’ with the ‘national development’ process. Thus, our findings will contribute to both academics who study the effects of governance on development and to policymakers who utilize these sources for improved political and social development with the aim to prevent poverty and improve access to basic human needs.
Journal: Applied Economics
Pages: 522-535
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1966373
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966373
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Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:522-535
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Alfaro
Author-X-Name-First: Martin
Author-X-Name-Last: Alfaro
Title: Beer leaders against craft brewers: will Goliath end up defeating David in the US?
Abstract:
The last decade has witnessed an unprecedented rise of craft brewers in the American beer industry, with market leaders actively seeking to hamper their growth. In this paper, we set a model with craft brewers and macrobrewers, where leading firms engage in strategic moves to shape market outcomes. The framework results in leaders strategically targeting craft brewers to disadvantage them, and hence crowd them out. On the contrary, non-leading macrobrewers are neither targeted nor hurt. A calibration for the American beer industry in 2019 shows that, even though the emergence of craft brewers in the last years has hurt leaders, strategic moves have allowed them to mitigate its consequences. Specifically, these moves have respectively enabled AB InBev and Molson Coors to prevent further losses of market share of 5.1 and 2.8 points, implying that the craft brewers’ market share would have been even 7.9 points higher in absence of strategic moves.
Journal: Applied Economics
Pages: 554-567
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967278
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967278
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Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:554-567
Template-Type: ReDIF-Article 1.0
Author-Name: Gaurav Gupta
Author-X-Name-First: Gaurav
Author-X-Name-Last: Gupta
Title: CEO’s educational background, economic policy uncertainty and investment-cash flow sensitivity: evidence from India
Abstract:
This study investigates the impact of Economic Policy Uncertainty (EPU) on Investment-Cash Flow Sensitivity (ICFS). Further, this study investigates whether CEO’s educational backgrounds moderate the effect of EPU on ICFS for Indian manufacturing firms from 2005 to 2019. Using the system-GMM, this study finds that EPU increases the role of cash flow for corporate investment and reduces corporate investment. Additionally, CEOs with an educational background in the finance domain (technical area) do (not) moderate the negative impact of EPU on ICFS. The finding of this study suggests that EPU considerably affects ICFS, and CEO’s educational backgrounds moderate the effect of EPU on ICFS. Overall, this study adds new insights into the research fields and the implications of this study are beneficial for economies, firms, managers, and investors.
Journal: Applied Economics
Pages: 568-579
Issue: 5
Volume: 54
Year: 2022
Month: 01
X-DOI: 10.1080/00036846.2021.1967279
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967279
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Handle: RePEc:taf:applec:v:54:y:2022:i:5:p:568-579
Template-Type: ReDIF-Article 1.0
Author-Name: Sudarshan Kumar
Author-X-Name-First: Sudarshan
Author-X-Name-Last: Kumar
Author-Name: Vineet Virmani
Author-X-Name-First: Vineet
Author-X-Name-Last: Virmani
Title: Term structure estimation with liquidity-adjusted Affine Nelson Siegel model: A nonlinear state space approach applied to the Indian bond market
Abstract:
Efficient term structure estimation in emerging markets is difficult not only because of overall lack of liquidity, but also because of the concentration of liquidity in a few securities. Using the arbitrage-free Affine Nelson-Siegel model, we explicitly incorporate this phenomenon using a proxy for liquidity based on observable data in the bond pricing function and estimate the term structure for Indian Government bond markets in a nonlinear state space setting using the Unscented Kalman Filter. We find strong empirical evidence in support of the extended model with both i) a better in-sample fit to bond prices, and ii) the likelihood ratio test rejecting the restrictions assumed in the standard AFNS specification. In an alternative specification, we also model liquidity as a latent risk factor within the AFNS framework. The estimated latent liquidity factor is found to be strongly correlated with the standard market benchmarks of overall liquidity and the India VIX index.
Journal: Applied Economics
Pages: 648-669
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967866
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967866
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Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:648-669
Template-Type: ReDIF-Article 1.0
Author-Name: Hirokazu Mizobata
Author-X-Name-First: Hirokazu
Author-X-Name-Last: Mizobata
Title: Financial heterogeneity and the dynamics of credit rationing in Japan
Abstract:
A perceptual gap between banks and firms exists in Japan, preventing the credit channel of monetary policy. Banks believe that bankable customers are scarce, while firms believe that banks do not issue loans without collateral or guarantees. To explain this gap, I focus on the dispersion in the degree of financial constraints across listed Japanese firms from FY1991 to FY2019. I construct a firm-specific and time-varying measure of financial constraints through the structural estimation, and investigate its distribution over time. The results reveal a right-skewed distribution for the index of financial constraints, indicating that many firms face minor financial constraints, while a few face severe financial constraints. The spread between the 75th and 25th percentiles of the index of financial constraints increased after the bubble burst, indicating that Japan’s financial heterogeneity has recently become outstanding. Finally, decomposing financial heterogeneity into within – and between-industry effects shows that the observed financial inequality is due to the increase in inequality among firms within narrowly defined industries.
Journal: Applied Economics
Pages: 685-701
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967869
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967869
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Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:685-701
Template-Type: ReDIF-Article 1.0
Author-Name: Serpil Kahraman
Author-X-Name-First: Serpil
Author-X-Name-Last: Kahraman
Author-Name: Merve Keser
Author-X-Name-First: Merve
Author-X-Name-Last: Keser
Title: Volatility Transmission Between the Japanese Stock Market and the Western Stock Market Indices: Time & Frequency Domain Connectedness Analysis with High-Frequency Data
Abstract:
Stock markets are the main source of financial fragility and the spillover effect due to the high level of connectedness. This study focuses on the connectedness between the Japanese stock market and the major Western stock market indices by performing time and frequency-domain connectedness analysis for the period between 4 January 2002, and 29 September 2020. The time-domain analysis shows that there is a high connectedness among stock market indices, and the net transmitter indices are SPX and AEX while net receiver indices are AORD and N225. The frequency-based analysis highlights that the connectedness between markets in the long term contains more information in contrast to short and medium terms. Similar to time-domain results, SPX is the net transmitter and N225 is the net receiver market indices in long term. Moreover, the dynamic analysis results illustrate the turbulent times of the volatility spillover in the long term with high and short-medium run with low spillover index. Dynamically, time-domain and long-term frequency-domain frameworks’ findings give similar time variation illustrations.
Journal: Applied Economics
Pages: 670-684
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967868
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967868
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Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:670-684
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: James W. Kolari
Author-X-Name-First: James W.
Author-X-Name-Last: Kolari
Title: Choosing factors: the international evidence
Abstract:
Extending Fama and French’s U.S. study on choosing factors to international equity markets, we test nested and non-nested asset pricing models for North America, Europe, Asia excluding Japan, and Japan. For non-nested models, we propose a new simulation methodology using a blocks bootstrap approach that takes into account factor dependencies. The resultant out-of-sample Sharpe ratios across all models and countries are lower than Fama and French’s pairs bootstrap approach. While we confirm that the six-factor model with market, size, and small size spread factors for value, profitability, investment, and momentum produces the highest maximum squared Sharpe ratio in most economies, an exception is Asia excluding Japan. Additionally, spanning regressions reveal that size does not matter in any of the international equity markets, whereas value matters in Europe, Asia excluding Japan, and Japan.
Journal: Applied Economics
Pages: 633-647
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967865
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967865
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Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:633-647
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Author-Name: Xianming Fang
Author-X-Name-First: Xianming
Author-X-Name-Last: Fang
Title: Responses of China’s shadow banking system to exogenous shocks
Abstract:
The rapid expansion of China’s shadow banking system in recent years has led to continuous accumulation of risks and posed threats to the security of China’s real economy. According to the specific mechanism of China’s economic operation, this paper constructs a dynamic stochastic general equilibrium model to analyse the responses of China’s shadow banking system to the exogenous shocks of benchmark interest rate adjustment, high-risk enterprise return rate fluctuation and shadow bank return rate fluctuation. Results indicate that (1) the shadow bank loan interest rate reacts intensively to the benchmark interest rate adjustment; (2) the shadow bank loan interest rate has immediate and short-term response to the fluctuation of high-risk enterprise return rate; (3) the fluctuation of shadow bank return rate indirectly affects the shadow bank loan interest rate. An empirical study using the time-varying VAR model provides further empirical evidence. The shadow banking risks caused by the impacts on the shadow bank loan interest would increase the fragility of China’s financial system and endanger the security of China’s real economy.
Journal: Applied Economics
Pages: 615-632
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967864
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967864
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Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:615-632
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolong Feng
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Feng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Mingyue Liu
Author-X-Name-First: Mingyue
Author-X-Name-Last: Liu
Author-Name: Huanguang Qiu
Author-X-Name-First: Huanguang
Author-X-Name-Last: Qiu
Title: Impact of grassland transfer on technical efficiency of livestock production in Northern China
Abstract:
This paper estimates the impact of grassland transfer on the technical efficiency of livestock production, using the cross-sectional data collected from herders in Northern China. The propensity score matching approach and selectivity-corrected stochastic production frontier model are employed to address the selection bias issues. The empirical results show that, on average, the average technical efficiency score of herders with grassland transfer is significantly higher than that of herders without grassland transfer, which are 0.56 and 0.41, respectively, after addressing both observed and unobserved selection biases. The livestock revenue is positively and significantly affected by forage grass use, machinery use, stocking rate, family and hired labours use, and veterinary investment. Our findings highlight the importance of facilitating grassland transfer to increase livestock production efficiency and boost farm performance.
Journal: Applied Economics
Pages: 702-718
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1967870
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1967870
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Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:702-718
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed BenSaïda
Author-X-Name-First: Ahmed
Author-X-Name-Last: BenSaïda
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Houda Litimi
Author-X-Name-First: Houda
Author-X-Name-Last: Litimi
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: The influence of oil, gold and stock market index on US equity sectors
Abstract:
Within a Markov regime switching perspective, we examine the spillovers between the returns of the ten most representative US equity sectors and the returns of gold, oil, and S&P 500 (GOI), on the one hand, and their implied volatilities, GVZ, OVX, and VIX, on the other hand. Our objective is to check if the implied volatilities of GOI influence the US equity sectors more than GOI returns. Single regime results show that GOI volatilities affect the equity sector returns more than GOI returns, suggesting that forward-looking volatility expectations play a more significant role in determining sector returns than current and historical GOI returns. During tranquillity periods, all three implied volatilities influence equity sector returns more than GOI returns. Moreover, VIX has the strongest effect on sectoral returns. During turmoil periods, VIX influences the sectoral returns more than S&P 500 returns. However, the returns of gold and oil influence equity sector returns more than their implied volatilities. The result may be useful to portfolio and equity risk managers for improved forecasting and hedging in the US equity markets.
Journal: Applied Economics
Pages: 719-732
Issue: 6
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1969001
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1969001
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Handle: RePEc:taf:applec:v:54:y:2022:i:6:p:719-732
Template-Type: ReDIF-Article 1.0
Author-Name: Hongzhou Pei
Author-X-Name-First: Hongzhou
Author-X-Name-Last: Pei
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Puneet Vatsa
Author-X-Name-First: Puneet
Author-X-Name-Last: Vatsa
Author-Name: Zhiyong Niu
Author-X-Name-First: Zhiyong
Author-X-Name-Last: Niu
Author-Name: Ruochen Jiang
Author-X-Name-First: Ruochen
Author-X-Name-Last: Jiang
Title: Economic Downturns and Leisure in China
Abstract:
This study examines the impact of economic downturns on leisure life, using the Chinese General Social Survey data from 2010 to 2015. The results show that economic downturns significantly decrease individuals’ time allocated to leisure activities. Specifically, participation in educational activities increases during economic downturns, while participation in social interaction and entertainment does not change. We also find that economic downturns significantly reduce the average frequency of individuals’ participation in active entertainment activities (e.g. reading, participating in cultural activities, listening to music at home, participating in physical exercise, watching live sports games, and doing handwork), but do not significantly affect the average frequency of individuals’ participation in passive entertainment activities (e.g. watching TV or DVD at home, watching movies in a cinema, shopping, gathering with relatives, gathering with friends, and surfing the Internet).
Journal: Applied Economics
Pages: 807-820
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1966371
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966371
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Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:807-820
Template-Type: ReDIF-Article 1.0
Author-Name: Ji Seon Yoo
Author-X-Name-First: Ji Seon
Author-X-Name-Last: Yoo
Author-Name: Tae Sup Shim
Author-X-Name-First: Tae Sup
Author-X-Name-Last: Shim
Title: Effects of changes in financial statement aggregation under IFRS on the behaviour of non-professional and professional information users
Abstract:
This study investigates the effects of the degree of financial statement aggregation and footnote disclosures under IFRS on the judgements of information users with different knowledge levels. A quasi-experiment is conducted with Korean MBA students and CPAs as surrogates for non-professional and professional users, respectively. The results suggest that changes in the level of aggregation of financial statements influence the judgements of non-professional but not professional information users. Neither the judgements of non-professional users nor those of professional users are affected by footnote disclosures. The findings of this study highlight the need for companies to improve the presentation format of their financial statements to better convey relevant information to users.
Journal: Applied Economics
Pages: 733-748
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2020.1855319
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855319
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Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:733-748
Template-Type: ReDIF-Article 1.0
Author-Name: Nasri Harb
Author-X-Name-First: Nasri
Author-X-Name-Last: Harb
Title: Earnings function in Lebanon: does religion matter?
Abstract:
This paper aims to study the wage gap among religions in Lebanon using a random sample. The advantage of using Lebanon as a case is due to its historical diversification. This case excludes any impact of culture, language and immigration. The article uses multiple regression analysis, the Oaxaca-Blinder decomposition, and the quantile distribution regressions to study the wage gap. The signs of our estimated coefficients are as expected. The results show a significant wage gap for Sunnis, and Shias compared to Maronites. Furthermore, we find that the place of work has a significant impact on earnings. The religion wage gap vanishes if a Shia worker is working in Beirut or in the Eastern suburb; or if a Sunni is working in the Eastern Suburb. Finally, the paper shows that the gap is larger in the case of males for Sunnis, but not for Shias.
Journal: Applied Economics
Pages: 821-840
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1966372
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966372
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Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:821-840
Template-Type: ReDIF-Article 1.0
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Linshan Qu
Author-X-Name-First: Linshan
Author-X-Name-Last: Qu
Author-Name: Ran Wei
Author-X-Name-First: Ran
Author-X-Name-Last: Wei
Author-Name: Xuankai Zhao
Author-X-Name-First: Xuankai
Author-X-Name-Last: Zhao
Title: Media-based investor sentiment and stock returns: a textual analysis based on newspapers
Abstract:
This study constructs a media-based investor sentiment index based on a textual analysis of China’s leading financial newspapers. We employ both the Word2Vec technique and the dictionary method to measure the aggregate textual tone in the media news. Based on a sample of publicly listed A-share firms in China, we document that media-based sentiment is positively (negatively) related to the cross-section of stock returns over a short (long) horizon. Further analysis shows that higher information quality, measured by more analyst coverage, better audit opinions and non-governmental ownership could mitigate the effects of sentiment. Overall, our findings imply that media news contains important information for measuring the overall investor sentiment that drives the future stock price up in the short term and then down in the long term.
Journal: Applied Economics
Pages: 774-792
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1966369
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966369
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Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:774-792
Template-Type: ReDIF-Article 1.0
Author-Name: Akem Nina Fabinin
Author-X-Name-First: Akem Nina
Author-X-Name-Last: Fabinin
Title: Pulse, export and staple convenience food: market analysis in West Africa
Abstract:
The recent expansion of trade measures across countries in sub-Saharan Africa provides market opportunities for the agri-food sector. However, price signals and changes across domestic and regional continental markets are a factor in boosting the success and performance of these markets. Examining commodity market adjustments to price shocks is essential for insights to boost trade performance. Using prominent food categories of the agricultural sector in this region, the study examines market dynamics between pulses, exports, and other staple convenience food. Spatial analysis evaluates market inter-dependencies between regional and domestic markets using a vector error correction model. The findings suggest heterogeneous market effects across commodities horizontally and vertically for value-added product forms in the food chain. In domestic intra-regional markets, price transmission is about as high for regional continental markets, while the extent for inter-regional domestic markets varies by the commodity niche on the value chain. Tailored market development policies can better the overall functioning of agri-food markets and boost the convergence of markets as well as trade integration and expansion.
Journal: Applied Economics
Pages: 764-773
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1965534
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1965534
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Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:764-773
Template-Type: ReDIF-Article 1.0
Author-Name: Guangli Zhang
Author-X-Name-First: Guangli
Author-X-Name-Last: Zhang
Author-Name: Xianhang Qian
Author-X-Name-First: Xianhang
Author-X-Name-Last: Qian
Title: The impact of officials’ turnover on interregional capital flows: evidence from China
Abstract:
Using data on the turnover of provincial Party secretary and interregional capital flows in China, this paper investigates the impact of officials’ turnover on capital flows. We find that there are fewer capitals inflowing into the province during the year with officials’ turnover, and it persists after considering selection bias and multiple robustness checks. When the outgoing officials have longer tenures or are not promoted and the new officials are non-native-born, the effect is larger. The impact of officials’ turnover is more pronounced in provinces with lower investor protection, lower corruption level or more non-state economy. Finally, officials’ turnover can decrease capital formation through reducing capital flows.
Journal: Applied Economics
Pages: 749-763
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1965533
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1965533
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Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:749-763
Template-Type: ReDIF-Article 1.0
Author-Name: Fakhri J. Hasanov
Author-X-Name-First: Fakhri J.
Author-X-Name-Last: Hasanov
Author-Name: Nader Alkathiri
Author-X-Name-First: Nader
Author-X-Name-Last: Alkathiri
Author-Name: Saad A. Alshahrani
Author-X-Name-First: Saad A.
Author-X-Name-Last: Alshahrani
Author-Name: Ryan Alyamani
Author-X-Name-First: Ryan
Author-X-Name-Last: Alyamani
Title: The impact of fiscal policy on non-oil GDP in Saudi Arabia
Abstract:
This paper examined the impact of fiscal policy on non-oil GDP in Saudi Arabia, the world’s largest oil exporter, over the annual period 1989–2018. We employed various cointegration methods within the framework of the augmented production function and estimated that government current and capital expenditure, in addition to non-oil labour and capital, have statistically significant positive effects on non-oil GDP. We tested whether the recent oil price decline and the implemented economic reforms caused a break in the relationship that non-oil GDP establishes with the mentioned variables and found that there was no break in either the long-run or the short-run relationship. The study concluded with some policy insights that could be useful for fiscal authorities to promote non-oil economic development.
Journal: Applied Economics
Pages: 793-806
Issue: 7
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1966370
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1966370
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Handle: RePEc:taf:applec:v:54:y:2022:i:7:p:793-806
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Applied Economics
Pages: 1-2
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2020.1861537
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861537
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Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:1-2
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Boulanger
Author-X-Name-First: Pierre
Author-X-Name-Last: Boulanger
Author-Name: Hasan Dudu
Author-X-Name-First: Hasan
Author-X-Name-Last: Dudu
Author-Name: Emanuele Ferrari
Author-X-Name-First: Emanuele
Author-X-Name-Last: Ferrari
Author-Name: Alfredo J. Mainar-Causapé
Author-X-Name-First: Alfredo J.
Author-X-Name-Last: Mainar-Causapé
Author-Name: Maria Priscila Ramos
Author-X-Name-First: Maria Priscila
Author-X-Name-Last: Ramos
Title: Effectiveness of fertilizer policy reforms to enhance food security in Kenya: a macro–micro simulation analysis
Abstract:
Food security represents a key challenge in most Sub-Saharan African countries and in Kenya in particular where still a relevant share of the population lives below a minimum dietary energy consumption. Kenya addresses this concern with a noteworthy policy mix, aiming at giving to the agricultural sector a leading task in improving food security. This paper evaluates the impacts on food security of expanding fertilizer capacities in Kenya, combined with a set of additional policy changes targeting fertilizer use. In a top-down analysis, a specific Computable General Equilibrium (CGE) model is linked with a microsimulation approach. Scenarios present overall positive effects on key food security aggregates. The same is true for welfare. Nevertheless, the heterogeneity of households across and within regions suggests that improving input productivity through better market access and service extension are critical to reducing possible discrepancies across farmers, households and regions. The paper concludes on the need for a sound policy mix since increasing fertilizer production alone is not enough to enhance food security evenly. Among accompanying measures, intensifying extension services are essential especially for smallholders in their acquisition of better knowledge on the use of agricultural inputs.
Journal: Applied Economics
Pages: 841-861
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2020.1808180
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1808180
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Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:841-861
Template-Type: ReDIF-Article 1.0
Author-Name: Kadija Charni
Author-X-Name-First: Kadija
Author-X-Name-Last: Charni
Title: Do employment opportunities decrease for older workers?
Abstract:
Increasing the labour market participation rates of older workers is a means to secure the sustainability of public finances. However, questions about the effects of job loss of unemployed older workers and their employment prospects remain. This paper investigates why workers, aged 50 and over, have less employment opportunities. Using a competing risks model on British panel data, we examine the chances of re-employment after unemployment spells for older individuals. We find that human capital characteristics and economic incentives play an important role in their chances of getting back to work. We show that the probability of returning to employment after an unemployment spell decreases as workers get older. A decomposition analysis supports the role of age in the unemployment duration gap between ‘older’ and ‘younger’ individuals. The duration of leaving unemployment to employment of older workers would be lower if they will be treated in the same way as the younger ones, which is consistent with elderly employment barriers.
Journal: Applied Economics
Pages: 937-958
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1970711
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1970711
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Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:937-958
Template-Type: ReDIF-Article 1.0
Author-Name: Adél Bosch
Author-X-Name-First: Adél
Author-X-Name-Last: Bosch
Author-Name: Matthew Clance
Author-X-Name-First: Matthew
Author-X-Name-Last: Clance
Author-Name: Steven F. Koch
Author-X-Name-First: Steven F.
Author-X-Name-Last: Koch
Title: Household debt and consumption dynamics A non-developed world view following the financial crisis
Abstract:
According to recent macroeconomic evidence, the global financial crisis is still impacting the South African financial landscape more than 10 years later. In an effort to better understand the effect of the financial crisis, we examine household debt dynamics, with particular attention to deleveraging, following the financial cycle peak. Our analysis is predicated on the National Income Dynamics Study, the first wave of which was conducted adjacent to the beginning of the crisis. We apply standard regression analysis finding heterogeneity in debt and deleveraging at the household level, with both an uptick in short-term debt in the early stages of the crisis and a reduction in long-term debt, primarily mortgage debt, since. Overall, deleveraging was greatest amongst higher income households with relatively larger mortgage debt-to-income ratios, although that was partially offset in households with higher mortgage repayment costs relative to income. Long-term deleveraging was also more likely amongst households with higher vehicle debt-to-income ratios, but lower consumer debt-to-income ratios.
Journal: Applied Economics
Pages: 897-917
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1969004
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1969004
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Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:897-917
Template-Type: ReDIF-Article 1.0
Author-Name: Yunshen Long
Author-X-Name-First: Yunshen
Author-X-Name-Last: Long
Author-Name: LinQing Zeng
Author-X-Name-First: LinQing
Author-X-Name-Last: Zeng
Author-Name: Jing Wang
Author-X-Name-First: Jing
Author-X-Name-Last: Wang
Author-Name: Xingchen Long
Author-X-Name-First: Xingchen
Author-X-Name-Last: Long
Author-Name: Liang Wu
Author-X-Name-First: Liang
Author-X-Name-Last: Wu
Title: A gradient boosting approach to estimating tail risk interconnectedness
Abstract:
Interconnectedness, an important risk indicator, should be gauged when assessing the tail risk of financial institutes. Considering potential nonlinearity and interaction in the networked tail risk contagion, we propose an interpretably non-parametric measure based on Gradient Boosting Machine (GBM) to estimate interconnectedness across financial institutes. The proposed measure can be utilized to monitor tail risk spillover channels. We apply our proposed measure to investigate the tail risk interconnectedness of the listed banks in China. We find that the tail risks tend to be spilled over within the same type of banks. The empirical result also implies that the bank heavily involved with the interbank business, such as Industrial Bank, is worthy of regulators’ attention. Further analysis shows that the total connectedness of the banking system increases when the financial system is under distress. Finally, we document that state-owned banks are the main tail risk emitters during financial turbulence. Our study not only presents a flexibly data-driven way to quantify tail risk contagion but also provides useful information to policymakers for prudential supervision.
Journal: Applied Economics
Pages: 862-879
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1969002
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1969002
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Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:862-879
Template-Type: ReDIF-Article 1.0
Author-Name: Viera Mendelová
Author-X-Name-First: Viera
Author-X-Name-Last: Mendelová
Title: Technical efficiency decomposition in DEA: a review and improvement with an application in Slovak urban transport
Abstract:
The article deals with the issue of a technical efficiency (TE) decomposition of decision-making units (DMUs) using data envelopment analysis (DEA). The article summarizes two established DEA decomposition approaches and shows that although these approaches are straightforward and relatively easy to apply in empirical analyses, they are associated with certain shortcomings. As discussed in the article, these shortcomings are mainly related to the way in which the mix efficiency is measured and to the fact that they focus only on one side of efficiency (input or output). The article attempts to overcome these limitations and proposes an alternative simple decomposition method in which problems with measuring mix efficiency are eliminated and both efficiency of inputs, as well as efficiency of outputs are incorporated. The proposed method so provides a comprehensive view on the activities of the evaluated DMUs and points to specific sources of technical inefficiency in the overall input-output view. The case of urban transport companies (UTCs) in the Slovak Republic is revisited using this newly developed approach.
Journal: Applied Economics
Pages: 880-896
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1969003
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1969003
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Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:880-896
Template-Type: ReDIF-Article 1.0
Author-Name: Yongsuk Yun
Author-X-Name-First: Yongsuk
Author-X-Name-Last: Yun
Author-Name: Hyun Ah Kim
Author-X-Name-First: Hyun Ah
Author-X-Name-Last: Kim
Title: High investor sentiment and initial engagement discounts: evidence from Korea
Abstract:
This study examines whether high sentiment affects auditors’ risk assessment in a less litigious environment. Specifically, we use a Korean setting with relatively low litigation risks and investigate whether audit fees are lower when firms change auditors during high sentiment times. Lower audit fees responding to high sentiment in a weak legal environment may indicate that auditors perceive the overall audit risk including reputation risk and regulation risk as low within the given period, increasing the possibility of their failure to detect managerial opportunistic behaviour. Using 17,469 Korean public firm-year observations from 2003 to 2017, we find that initial audit fees are significantly lower when investor sentiment is high, while changing auditors has no influence on audit fees when investor sentiment is low. Furthermore, this result is maintained even when auditors are changed to Big4 or industry specialist auditors (SPEC), which are known to have high ability and risk sensitivity. We also find that Big4 and SPEC initial auditors input significantly less audit hours during high investor sentiment periods, suggesting that optimistic bias caused by high sentiment makes auditors expect that relaxed audits are tolerable regardless of the legal environment.
Journal: Applied Economics
Pages: 959-973
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1971619
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1971619
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Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:959-973
Template-Type: ReDIF-Article 1.0
Author-Name: Oudah Yobom
Author-X-Name-First: Oudah
Author-X-Name-Last: Yobom
Author-Name: Julie Le Gallo
Author-X-Name-First: Julie
Author-X-Name-Last: Le Gallo
Title: Climate and agriculture: empirical evidence for countries and agroecological zones of the Sahel
Abstract:
How heterogenous is the impact of climate change across space and the type of agricultural production? In this paper, we investigate the relationship between climate change and variability, measured by temperature and rainfall, and agricultural production at the country and agroecological zone levels of the Sahel. We consider a crop production index and five cereals (maize, millet, sorghum, wheat and rice). Based on an original climate database and an agricultural production function estimated for the period 1961–2016, we show that average rainfall and temperature during the growing season indeed have highly heterogeneous effects on agricultural production, depending on the specific needs and stress of each cereal and the agronomic and climatic conditions of each zone.
Journal: Applied Economics
Pages: 918-936
Issue: 8
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1970710
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1970710
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Handle: RePEc:taf:applec:v:54:y:2022:i:8:p:918-936
Template-Type: ReDIF-Article 1.0
Author-Name: Fei Peng
Author-X-Name-First: Fei
Author-X-Name-Last: Peng
Author-Name: Ling Wang
Author-X-Name-First: Ling
Author-X-Name-Last: Wang
Author-Name: Xing Shi
Author-X-Name-First: Xing
Author-X-Name-Last: Shi
Author-Name: Huaqing Wu
Author-X-Name-First: Huaqing
Author-X-Name-Last: Wu
Title: Does value-added tax reform in services accelerate enterprise upgrading? Micro evidence from China
Abstract:
This study investigates the impact of the value-added tax reform in services on enterprise upgrading during China’s transition. We found that the reform significantly accelerates the process of enterprise upgrading by using data on China’s listed companies from 2009 to 2017 and a difference-in-differences approach. Heterogeneous analyses show that the impact of the reform is mainly manifested in non-state-owned enterprises. We also find that quality upgrading (value-added) plays a dominant role, while the potential of total factor productivity is not fully exploited yet. Tax reduction, investment in innovation, specialization, and factor allocation are major pathways to achieving enterprise upgrading. These findings provide implications for transitional economies in promoting enterprise upgrading through tax incentives.
Journal: Applied Economics
Pages: 1093-1109
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1975029
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975029
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Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1093-1109
Template-Type: ReDIF-Article 1.0
Author-Name: Chao Liang
Author-X-Name-First: Chao
Author-X-Name-Last: Liang
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Forecasting the volatility of the German stock market: New evidence
Abstract:
This study mainly explores whether the implied volatility indices of international stock markets and crude oil contain useful information in predicting the realized volatility (RV) of the German stock market. We use the standard predictive regression model, principal component analysis, five combination methods, and two shrinkage models to generate forecasts of DAX index volatility. First, the in-sample results indicate that almost all of the implied volatility indices considered have significant predictive power for the RV of the German DAX index. Second, the out-of-sample predictions suggest that the two shrinkage models exhibit the best out-of-sample predictions. Furthermore, a mean-variance investor can allocate portfolios through volatility predictions based on shrinkage models to achieve considerable economic gains. Finally, our conclusions are supported by numerous robustness checks.
Journal: Applied Economics
Pages: 1055-1070
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1975027
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975027
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Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1055-1070
Template-Type: ReDIF-Article 1.0
Author-Name: Firmin Doko Tchatoka
Author-X-Name-First: Firmin
Author-X-Name-Last: Doko Tchatoka
Author-Name: Julia Puellbeck
Author-X-Name-First: Julia
Author-X-Name-Last: Puellbeck
Author-Name: Virginie Masson
Author-X-Name-First: Virginie
Author-X-Name-Last: Masson
Title: Stock returns in the time of COVID-19 pandemic
Abstract:
This paper investigates the dependence between COVID-19 shocks and stock market returns for seven countries: Canada, China, France, Germany, South Korea, the UK and the US. Using a quantile-on-quantile (QQ) regression analysis, we find that all stock markets responded to COVID-19 shocks mostly negatively. However, we also observe instances where an increase in the number of COVID-19 confirmed cases resulted in higher stock returns. This unexpected positive dependence captures the much debated stock market-real economy disconnect at the time of the onset of the COVID-19 pandemic. Furthermore, although stock markets’ responses to both the global and the country-specific COVID-19 shocks are similar across countries, substantial differences also exist. In particular, stock markets in the US and China differed in their responses to the global COVID-19 shocks, with a higher degree of heterogeneity observed for the Chinese market. Finally, Asian markets reacted differently to country-specific COVID-19 shocks when compared to the US market. This finding could be explained by the fact that investors in the US stock markets may form their expectations mostly from the US COVID-19 shock, while investors in Asian countries, including China, may value more the information transmitted through the global COVID-19 shock.
Journal: Applied Economics
Pages: 1071-1092
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1975028
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975028
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Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1071-1092
Template-Type: ReDIF-Article 1.0
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Francisco Jareño
Author-X-Name-First: Francisco
Author-X-Name-Last: Jareño
Author-Name: Ana Escribano
Author-X-Name-First: Ana
Author-X-Name-Last: Escribano
Title: Dynamic return and volatility connectedness for dominant agricultural commodity markets during the COVID-19 pandemic era
Abstract:
This paper explores the dynamic return and volatility connectedness for the three most relevant agricultural and livestock commodity indexes (Softs, Grains and Livestock) and a media sentiment index as the Coronavirus Media Coverage Index (MCI). To that purpose, we apply the fresh time-varying parameter vector autoregression methodology during the sample period between 1 January 2020 and 30 April 2021, that is, covering the three waves of the COVID-19 pandemic crisis. Interesting results are found in this research. First, dynamic total return and volatility connectedness fluctuate over time, reaching a peak during both the first and the third waves of the global pandemic crisis. Second, in the dynamic connectedness TO the system, we observe significant differences between markets at the level of the return connectedness measure. However, in the dynamic volatility connectedness TO, there are very few differences between some elements of the system. The Coronavirus MCI appears as the less relevant receiver FROM the system, not only in terms of dynamic return connectedness but also in volatility. Finally, regarding the net dynamic total connectedness, the Coronavirus MCI shows the highest values in return and volatility, during most of the sample period analysed.
Journal: Applied Economics
Pages: 1030-1054
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1973949
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1973949
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Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1030-1054
Template-Type: ReDIF-Article 1.0
Author-Name: Luke Ignaczak
Author-X-Name-First: Luke
Author-X-Name-Last: Ignaczak
Author-Name: Louis Raffestin
Author-X-Name-First: Louis
Author-X-Name-Last: Raffestin
Author-Name: Marcel Voia
Author-X-Name-First: Marcel
Author-X-Name-Last: Voia
Title: Do the determinants of employment duration vary across employment spells?
Abstract:
This paper looks at employment spells beyond the first, to check if multiple employment separations improve the matching of skills between workers and firms. We investigate whether the factors that are relevant for the first spell remain relevant for later spells. The results point to a range of outcomes. Certain variables such as the unemployment rate gap or part-time employment remain strong consistent predictors of the separation hazard across spells. In contrast, the coefficients of some variables such as the education or family status of the worker change sign and significance as the number of spells increases. This pattern is explained using a theoretical model that connects the cross-spell impact of a variable to its impact on the underlying distribution of the tendency to separate across workers. Variables associated with either a very low or a very high tendency to separate have an inconsistent effect across spells, because workers with a low tendency to separate do not appear in subsequent spells. Additionally, we find that the results vary across genders and generations.Classification codes: J00, C14, C12, C41.
Journal: Applied Economics
Pages: 1011-1029
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1972084
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1972084
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Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:1011-1029
Template-Type: ReDIF-Article 1.0
Author-Name: Yang Liu
Author-X-Name-First: Yang
Author-X-Name-Last: Liu
Author-Name: Keisuke Kawata
Author-X-Name-First: Keisuke
Author-X-Name-Last: Kawata
Title: Labour market and wage inequalities between permanent rural migrants and urban-born residents in China
Abstract:
This study provides some of the first empirical evidence on the role of the labour market in determining individual-level wages and the consequent wage inequalities. Unlike traditional earnings equations that focus on human capital factors, this study follows recent wage theory, the Nash bargaining model, and finds that not only human capital but also the labour market are important factors in determining individual-level wages. Further, this study examines wage inequalities between urban-born workers and permanent rural migrant workers, who constitute a sizable part of all rural migrants in urban China but have been ignored in previous academic studies. Different from temporary rural migrants examined in previous studies, permanent rural migrants share the same citizenship rights and social welfare as urban-born workers. However, we still find that these permanent migrants (classified as talent, land, and ‘supported’ migrants) face disadvantages in acquiring high wages. Using a developed version of the two-fold Blinder–Oaxaca decomposition based on our theoretical model, we find that the wage inequalities between permanent rural migrants and urban residents are caused by both the workers’ education and labour market tightness, as well as the father’s employment status, housing prices, and other factors.
Journal: Applied Economics
Pages: 996-1010
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1925079
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1925079
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Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:996-1010
Template-Type: ReDIF-Article 1.0
Author-Name: Fan Chen
Author-X-Name-First: Fan
Author-X-Name-Last: Chen
Title: Merton model’s prediction and empirical evidence on bond and equity prices reaction to new bond issues
Abstract:
I use the Merton model as a theoretical framework to assess 1) the expected impact of a new bond offering on existing bond and stock prices, and 2) how the bond and stock price reactions are conditioned on characteristics of the new and existing bonds and the planned use of the new funds. Consistent with the Merton model prediction, I find negative and significant average abnormal returns of issuers’ existing bonds over a three-day event window surrounding the announcement of new bond issues. In contrast, average abnormal stock returns of the issuing firms are positive but insignificant. Bond market announcement returns estimated using daily corporate bond data from TRACE are more negative for longer-term outstanding bonds and less negative when the new bonds are junior to existing bonds. I also find that the bond price reaction (stock price reaction) is more negative (less positive) when funds are to be used for expansion than when they are to be used to repurchase stock.
Journal: Applied Economics
Pages: 974-995
Issue: 9
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2020.1861205
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1861205
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Handle: RePEc:taf:applec:v:54:y:2022:i:9:p:974-995
Template-Type: ReDIF-Article 1.0
Author-Name: Md. Abdur Rahman Forhad
Author-X-Name-First: Md. Abdur Rahman
Author-X-Name-Last: Forhad
Author-Name: Md Rafayet Alam
Author-X-Name-First: Md Rafayet
Author-X-Name-Last: Alam
Title: Impact of oil demand and supply shocks on food-grain prices: a Markov-switching approach
Abstract:
This study examines the impact of structural oil demand and supply shocks on the prices of four food-grains: corn, rice, soybean and wheat. We first derive two oil demand shocks-one is due to the change in the global economic condition and the other is oil-market-specific-and an oil supply shock that reflects the change in global oil production. The structural shocks are then used in the linear, and nonlinear Markov-switching models to examine their effects on the four food-grain prices. The results show that an unanticipated oil supply shock does not affect price of any of the four food-grains significantly. An increase in the demand for oil, which is not induced by the change in global economic condition, increases only the corn price in the less volatile corn market. An improvement of global economic condition impacts wheat and corn prices in high volatility regimes. However, oil shocks that are older than one month usually do not affect the food-grain prices.
Journal: Applied Economics
Pages: 1199-1211
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.2009113
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009113
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Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1199-1211
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher S. Brunt
Author-X-Name-First: Christopher S.
Author-X-Name-Last: Brunt
Title: Did the Medicaid expansion reduce service utilization among the Medicare population?
Abstract:
While a large and growing literature has examined the effects of the Affordable Care Act’s Medicaid expansion on newly eligible Medicaid recipients, relatively few studies have explored whether increased Medicaid service utilization has had any negative spillover effects on the Medicare population. This study uses county-level data on Medicare fee-for-service (FFS) utilization from 2007 to 2018 in conjunction with inverse probability of treatment adjusted difference-in-differences and event study models with a variety of inter-temporal controls and county-level fixed effects. It finds highly significant effects of modest magnitude providing evidence of negative spillovers on the traditional Medicare Fee-for-service (FFS) population. FFS Medicare Beneficiaries in Medicaid expansion states experienced a 1% reduction in Evaluation and Management (E&M) visits, a 2.1% reduction in testing services, collectively reducing their volume of visits across Berenson-Eggers Type of Service (BETOS) categories by 0.7%.
Journal: Applied Economics
Pages: 1172-1198
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.2002803
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2002803
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Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1172-1198
Template-Type: ReDIF-Article 1.0
Author-Name: Mayumi Fukumoto
Author-X-Name-First: Mayumi
Author-X-Name-Last: Fukumoto
Title: Global value chain and its impacts on Malaysia’s trade balance
Abstract:
This study attempts to improve Malaysia’s aggregate import demand functions by considering disaggregated imports using import data classified by broad economic categories (BEC). The results suggest that the deeper the country’s involvement in international production sharing, the less essential relative prices will become. Economic growth driven by the electric industry might not harm the trade balance. However, an increase in domestically produced transport equipment might negatively affect the trade balance. Thus, developing and facilitating domestic production in the automobile industry is essential, and the government is advised to design policies to promote relevant industries.
Journal: Applied Economics
Pages: 1162-1171
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1998336
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998336
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Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1162-1171
Template-Type: ReDIF-Article 1.0
Author-Name: Lorna Syme
Author-X-Name-First: Lorna
Author-X-Name-Last: Syme
Author-Name: Elisabeth Mueller
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Mueller
Title: Does skill balancing prepare for entrepreneurship? Testing the underlying assumption of the jack-of-all-trades view
Abstract:
Lazear’s jack-of-all-trades view of entrepreneurship predicts that individuals with a more balanced skill set are more likely to enter entrepreneurship. This relationship is often explained by either the investment or the endowment hypothesis. Both hypotheses describe skill balancing by those more interested in entrepreneurship per se. Previous studies which have attempted to determine the relative importance of both hypotheses have neglected the important question of whether balanced skills are actually productive in preparing an individual for entrepreneurship. We test this key underlying assumption by introducing a new measure of skill balancing that measures the breadth of skills directly and introduces exogenous skill balancing due to involuntary job changes. Results suggest that skill balancing through an external shock to an individual’s skill set also increases the probability of entering entrepreneurship. Thus, the underlying assumption of the jack-of-all-trades view that balanced skills support entrepreneurship can also be confirmed for exogenous skill balancing. We contribute to the discussion of whether entrepreneurs are born or made by suggesting that even individuals not predisposed to entrepreneurship can be productively prepared for it.
Journal: Applied Economics
Pages: 1145-1161
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1998322
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998322
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Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1145-1161
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dempsey
Author-X-Name-First: Michael
Author-X-Name-Last: Dempsey
Author-Name: Huy Pham
Author-X-Name-First: Huy
Author-X-Name-Last: Pham
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Title: Investment in Cryptocurrencies: lessons for asset pricing and portfolio theory
Abstract:
We consider the performance of cryptocurrencies in the light of fundamental asset pricing and portfolio theory. We observe how a traditional focus on reducing asset return volatility with Markowitz diversification misses the significance of such volatility for growth. The recognition that asset growth is more likely subject to exponential or continuously compounding growth characteristics reveals that asset volatility can be exploited both across assets and across investment periods to deliver superior returns.
Journal: Applied Economics
Pages: 1137-1144
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1998321
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998321
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Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1137-1144
Template-Type: ReDIF-Article 1.0
Author-Name: Mar Delgado-Téllez
Author-X-Name-First: Mar
Author-X-Name-Last: Delgado-Téllez
Author-Name: Esther Gordo
Author-X-Name-First: Esther
Author-X-Name-Last: Gordo
Author-Name: Iván Kataryniuk
Author-X-Name-First: Iván
Author-X-Name-Last: Kataryniuk
Author-Name: Javier J. Pérez
Author-X-Name-First: Javier J.
Author-X-Name-Last: Pérez
Title: The decline in public investment: ``social dominance’’ or too-rigid fiscal rules?
Abstract:
Public investment in advanced economies is at historical lows, following a declining trend since the 1980s. Two main hypotheses have been posed to explain this evolution: (i) the ‘social dominance hypothesis’, whereby increased public social spending has been displacing investment from government’s budgets, despite the upward trend witnessed in tax burdens and debt; (ii) fiscal rules’ frameworks, that would have forced governments to reduce investment in their quest for compliance. In this paper, we jointly test the validity of these two duelling explanations using two empirical approaches (panel data models; local projections) for a sample of advanced economies comprising data for the past six decades. We find that both factors are relevant to explain the observed downward trend in investment, with social spending acting as a structural driver, whereas fiscal rules contributed mainly when applied in fiscal consolidation episodes.
Journal: Applied Economics
Pages: 1123-1136
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1990841
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990841
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Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1123-1136
Template-Type: ReDIF-Article 1.0
Author-Name: Sunghoon Chung
Author-X-Name-First: Sunghoon
Author-X-Name-Last: Chung
Author-Name: Joonhyung Lee
Author-X-Name-First: Joonhyung
Author-X-Name-Last: Lee
Title: The price effect of China tire safeguard
Abstract:
This paper evaluates the impact on the tire price of China Tire Safeguard implemented by the US government for three years from 2009 to 2012. We find that the safeguard tariffs have been fully reflected onto the unit value of imported tires from China, which implies that tire exporters from China have not absorbed the tariff in their original export price. Interestingly, we also find that the unit value of imported tires from the Rest of the World rose during the safeguard period even though their products were not subject to tariffs. At the same time, domestic US tire producers increased the price significantly. However, such price increases were temporary: both unit values (from China and the Rest of the World) and US producers’ price gradually declined when the safeguard tariff expired.
Journal: Applied Economics
Pages: 1111-1122
Issue: 10
Volume: 54
Year: 2022
Month: 02
X-DOI: 10.1080/00036846.2021.1990206
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990206
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Handle: RePEc:taf:applec:v:54:y:2022:i:10:p:1111-1122
Template-Type: ReDIF-Article 1.0
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: Eduardo Schirmer Finn
Author-X-Name-First: Eduardo Schirmer
Author-X-Name-Last: Finn
Title: Can credibility offset electricity price effect on business confidence? An empirical investigation from a large emerging economy
Abstract:
We analyse the ‘offsetting effect’ that the central bank credibility can have in mitigating the harmful effects of the increase in electricity price on business confidence. Based on data from the Brazilian economy from 2010 to 2019, we perform several regressions with different specifications and methods, taking into account aggregate level and the eleven industrial sectors with higher electricity consumption. In general, our findings support the view that an increase in electricity price harms business confidence, but there is an ‘offsetting effect’ when central bank credibility increases.
Journal: Applied Economics
Pages: 1229-1242
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975031
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975031
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Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1229-1242
Template-Type: ReDIF-Article 1.0
Author-Name: Aolin Leng
Author-X-Name-First: Aolin
Author-X-Name-Last: Leng
Author-Name: Mengdi Wang
Author-X-Name-First: Mengdi
Author-X-Name-Last: Wang
Author-Name: Hanmei Chen
Author-X-Name-First: Hanmei
Author-X-Name-Last: Chen
Author-Name: Zhe Duan
Author-X-Name-First: Zhe
Author-X-Name-Last: Duan
Title: Can loan guarantee promote innovation behaviour in firms? Evidence from Chinese listed firms
Abstract:
Using a loan guarantee contract for credit financing is the primary method for firms to obtain external financial resources. We examine whether obtaining loan guarantees from third parties can promote innovation behaviour, and investigate the underlying mechanism. Using the 2007–2016 data of Chinese listed firms, we find that (i) firms with loan guarantees have lower innovation input but much higher patents output in that very year, (ii) higher the guarantee coverage cannot promote R&D expenditure in that very year and the following year. The results indicate that loan guarantees can promote innovation behaviour because it can ease the financial constraints the debtor facing, rather than the risk sharing mechanism.
Journal: Applied Economics
Pages: 1318-1334
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976381
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Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1318-1334
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Hua
Author-X-Name-First: Yu
Author-X-Name-Last: Hua
Author-Name: Hai-yan Zhang
Author-X-Name-First: Hai-yan
Author-X-Name-Last: Zhang
Author-Name: Hou-jun Liu
Author-X-Name-First: Hou-jun
Author-X-Name-Last: Liu
Title: Does pension affect labour supply? New evidence from large-scale rural pension policy reform in China
Abstract:
Using national longitudinal survey data, we study how the Chinese New Rural Pension Scheme (NRPS) reform affects the rural labour supply structure of individuals aged 20–70. Applying multiple regression approaches, we find NRPS does not significantly affect Chinese rural residents’ weekly working hours, labour force participation, or migration choices; only those aged 50–59 change their labour supply pattern after joining the pension system. Parental pensions motivate adult children to migrate out only when both parents receive pensions. Various factors are explored to understand our findings; the low subsidy that Chinese rural pensioners currently receive is the major factor. These results indicate that from the perspective of improving the welfare of the rural elderly and encouraging the more free flow of young rural labour force, it is necessary to increase the compensation level of NRPS.
Journal: Applied Economics
Pages: 1212-1228
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975030
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Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1212-1228
Template-Type: ReDIF-Article 1.0
Author-Name: Mingming Pan
Author-X-Name-First: Mingming
Author-X-Name-Last: Pan
Title: EU enlargements and U.S. FDI flows in the six core states
Abstract:
This paper addresses an under-researched question of whether regional integration with lower-income countries results in displacement of foreign direct investment (FDI) from high-income countries. Difference-in-differences (DID) estimations are used to, respectively, analyse the effects of the 1986 enlargement and the 2004/2007 enlargement of European Union (EU) on U.S. FDI flows into the EU core states. The results reveal a negative impact of the 1986 enlargement on EP FDI and positive effects of the 2004/2007 enlargement on EP and vertical FDI. The comparative analysis demonstrates that the impact of regional integration depends on the relative strength of a few factors determined by the circumstance. High-income countries do not necessarily lose FDI following an integration with lower-income countries. While the integration tends to divert labour-cost sensitive EP FDI away from the high-income members, as long as the high-income members adaptively go through industrial restructuring and take full advantage of the expanded production networks in response to the newly integrated regional environment, they are likely to become more resilient and competitive in the regional and global markets and reap the benefits of integration.
Journal: Applied Economics
Pages: 1301-1317
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976380
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976380
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Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1301-1317
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaodong Song
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Song
Author-Name: Saralees Nadarajah
Author-X-Name-First: Saralees
Author-X-Name-Last: Nadarajah
Title: New models for the extramarital affairs data
Abstract:
The extramarital affairs data set due to Fair is a popular data in the econometric literature. We propose two new models for the data. They are shown to provide better fits than many of the known models for the data. The fits were assessed in terms of AIC, residual plots, comparison of observed and predicted counts and some formal tests.
Journal: Applied Economics
Pages: 1243-1256
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975632
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975632
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Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1243-1256
Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Ping Ang
Author-X-Name-First: Joshua Ping
Author-X-Name-Last: Ang
Author-Name: Fang Dong
Author-X-Name-First: Fang
Author-X-Name-Last: Dong
Title: The Effects and Counter-Effects of Unemployment and Stringency Responses to COVID-19: An International Analysis Using Simultaneous Equations Models
Abstract:
By applying the data from 59 countries to simultaneous equations models with 3SLS and GMM estimations, we analyse the effects and counter-effects of stringency of movement restrictions on unemployment rate and COVID-19 infection cases. On the one hand, our results show that the unemployment rate rises when the governments impose more stringent movement restrictions. On the other hand, a higher unemployment rate leads the government to lower stringency of movement restrictions. Our findings provide evidence on the tradeoff between unemployment rates and infection cases under the government’s virus containment intervention policies. This allows the policymakers to find a balance between public health emergencies and the economy. We also find that the stringency is affected positively by infection cases, negatively by the number of hospital beds per capita and healthcare spending per capita; the number of infection cases is affected positively by urban population density and negatively by an individualism index; and the unemployment rate is affected negatively by GDP.
Journal: Applied Economics
Pages: 1278-1300
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975634
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Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1278-1300
Template-Type: ReDIF-Article 1.0
Author-Name: Qingqing Fei
Author-X-Name-First: Qingqing
Author-X-Name-Last: Fei
Title: Opposite effects of returnee and non-local independent directors on firm’s environmental disclosure and performance
Abstract:
Government programmes and policies in China have brought energy conservation and emission reduction issues into focus. Given the positive role of independent directors and media in corporate governance, the study explores the impact of independent director’s characteristics and media exposure on firm’s environmental disclosure and performance. We find that independent director’s overseas background is positively associated with environmental behaviour, whereas non-local independent director is negatively related to environmental behaviour. The split-sample analyses further support that media coverage plays a positive role both through itself directly and via its impact on independent directors. In supplementary analyses, media exposure has a more significant effect on state-owned than on non-state-owned enterprises. Additionally, non-independent director’s overseas experience also improves firm’s environmental behaviour. The findings enable us to identify a specific channel to improve environmental disclosure and corporate governance, which is through the impact of media on certain independent directors such as returnee-independent directors in state-owned enterprises.
Journal: Applied Economics
Pages: 1257-1277
Issue: 11
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1975633
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1975633
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Handle: RePEc:taf:applec:v:54:y:2022:i:11:p:1257-1277
Template-Type: ReDIF-Article 1.0
Author-Name: Jung K. Kim
Author-X-Name-First: Jung K.
Author-X-Name-Last: Kim
Author-Name: Yumi Koh
Author-X-Name-First: Yumi
Author-X-Name-Last: Koh
Title: Pretrial justice reform and black–white difference in employment
Abstract:
While criminal justice reforms aimed at reducing the size of pretrial detainee population are being implemented across the U.S., little is known about their impact on the labour market. Using difference-in-differences approach, we find that the 2017 New Jersey Criminal Justice Reform increased the employment probability among blacks in their prime working age (i.e. 25–54) by 4.2 to 6.8 percentage points; its effect among whites is negligible. Labour force participation, full-time job status, and working hours among blacks also increased. Our findings suggest that individuals not detained pretrial are absorbed by the formal labour market and that this contributes to an overall increase in employment.
Journal: Applied Economics
Pages: 1396-1414
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976387
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976387
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Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1396-1414
Template-Type: ReDIF-Article 1.0
Author-Name: Zhenguo Wang
Author-X-Name-First: Zhenguo
Author-X-Name-Last: Wang
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Author-Name: Chun Liao
Author-X-Name-First: Chun
Author-X-Name-Last: Liao
Author-Name: Hongshan Ai
Author-X-Name-First: Hongshan
Author-X-Name-Last: Ai
Author-Name: Xiangyu Yang
Author-X-Name-First: Xiangyu
Author-X-Name-Last: Yang
Title: What contributes to the growth of China’s embodied CO2 emissions? Incorporating the global value chains concept
Abstract:
Global value chains (GVCs) not only reshape trade patterns but also influence trade-related emissions worldwide. This paper estimates China’s aggregate and industrial embodied CO2 emissions in international fragmentation production networks in 2000–2014, and further adopts the chaining structural decomposition analysis (SDA) incorporating the GVCs concept to identify the effect of production fragmentation on embodied CO2 emissions. In addition, heterogeneities in different trade patterns (i.e. pure domestic, traditional, simple, and complex trades) are also examined. The chaining SDA results show that the increase in GVCs leads to China’s embodied CO2 emissions growth, in which the relocation effect of final products is greater than that of intermediate products. Moreover, China’s embodied CO2 emissions are mainly induced by pure domestic demand, with trade-related activities accounting for less than 30%. Furthermore, the effect of traditional final demand trade activity is outstripping that of those rising from the simple and complex GVCs activities.
Journal: Applied Economics
Pages: 1335-1351
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976382
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976382
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Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1335-1351
Template-Type: ReDIF-Article 1.0
Author-Name: Fateh Belaid
Author-X-Name-First: Fateh
Author-X-Name-Last: Belaid
Author-Name: Véronique Flambard
Author-X-Name-First: Véronique
Author-X-Name-Last: Flambard
Author-Name: Michelle Mongo
Author-X-Name-First: Michelle
Author-X-Name-Last: Mongo
Title: How large is the extent of COVID-19 on territorial inequality? France’s current situation and prospects
Abstract:
This study develops a straightforward statistical approach to explore the COVID-19 pandemic impact on inequalities. The setting of the study is the economic and social inequalities in France, as an illustration of a particular European country that has been severely affected by the current health crisis. Using rich regional data, we provide a clear picture of the COVID-19 impact on inequalities in France at the regional level. The findings show that the pandemic shocks were very asymmetrical with little correlation with the socio-demographic characteristics of a territory. The consequences of the economic losses suffered and the health distress plunged the territories into an unprecedented and multifaceted crisis. The results of this study provide some relevant policy recommendations that can be expanded beyond the French context. It provides some guidance on how to identify the impact of the health crisis on inequalities and the aggravating factors.
Journal: Applied Economics
Pages: 1432-1448
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976389
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976389
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Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1432-1448
Template-Type: ReDIF-Article 1.0
Author-Name: Paulin Gohoungodji
Author-X-Name-First: Paulin
Author-X-Name-Last: Gohoungodji
Author-Name: Nabil Amara
Author-X-Name-First: Nabil
Author-X-Name-Last: Amara
Title: Historical roots and influential publications in the area of innovation in the creative industries: A cited-references analysis using the Reference Publication Year Spectroscopy
Abstract:
This study explores the historical roots of the relatively new topic of innovation in the creative industries. We are interested in the contributions of researchers that have proven to be important to the topic over the long term. To do so, we used the Reference Publication Year Spectroscopy method. This method is based on the analysis of the frequency with which references are cited in publications in a specific research area, in our case, innovation in the creative industries. The study is based on a corpus of articles rigorously selected through a systematic review method of empirical articles published between 1998 and 2019. The results reveal 4585 cited references (CR) with 9 clearly identifiable peaks, the first of which is caused by the work of Schumpeter (1934) and the last by the book of Miles & Green (2008). Each of the peaks marks a major contribution to the evolution of the understanding of innovation in these industries with one or more publications, the majority of which have an economic basis. In addition, the study reveals that the three most influential publications in this field are the economically oriented books by Florida (2002), Caves (2000), and Miles & Green (2008).
Journal: Applied Economics
Pages: 1415-1431
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976388
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976388
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Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1415-1431
Template-Type: ReDIF-Article 1.0
Author-Name: Youshu Li
Author-X-Name-First: Youshu
Author-X-Name-Last: Li
Author-Name: Junjie Guo
Author-X-Name-First: Junjie
Author-X-Name-Last: Guo
Title: The asymmetric impacts of oil price and shocks on inflation in BRICS: a multiple threshold nonlinear ARDL model
Abstract:
This study investigates the asymmetric impacts of oil price and component shocks on inflation in the context of BRICS countries. We firstly decompose the oil price change into supply, demand and risk shocks and subsequently establish an empirical framework to explore asymmetric pass-through using a novel multiple threshold nonlinear autoregressive distributed lag model (MTNARDL). The extended model yields precise asymmetric estimates by splitting oil price change and disaggregated shocks into different partial sums. Our results reveal that significant asymmetries between oil price and inflation are only exhibited in China in the short run, suggests that inflationary effect is more dramatic when oil price decreases. For the supply shocks, strong asymmetries are found in Russia and China in the short term and in South Africa in the long term. Meanwhile demand shocks and risk shocks hold either nil asymmetry or weak, in most cases risk shocks have the weakest effect on inflation and the influence fading fast, demand shocks only exert impact temporarily during extreme fluctuation. Nonetheless, asymmetries are most important and significant at the highest and lowest quintiles. Considering the empirical results, this study provides some policy implications for policymakers and investors.
Journal: Applied Economics
Pages: 1377-1395
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976386
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976386
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Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1377-1395
Template-Type: ReDIF-Article 1.0
Author-Name: Vito Amendolagine
Author-X-Name-First: Vito
Author-X-Name-Last: Amendolagine
Author-Name: Lucia Piscitello
Author-X-Name-First: Lucia
Author-X-Name-Last: Piscitello
Author-Name: Roberta Rabellotti
Author-X-Name-First: Roberta
Author-X-Name-Last: Rabellotti
Title: The impact of OFDI in global cities on innovation by Indian multinationals
Abstract:
We investigate the impact of Outward Foreign Direct Investment (OFDI) on the innovation performance of Indian multinationals by analysing their choice of entry mode (cross-border acquisitions versus greenfield investments) and their international location decisions (i.e. choice to locate in a global city). We rely on an augmented fractional logit estimator for 170 foreign investments in high- and medium-high tech manufacturing sectors in the period 2003 to 2011 and find that: (i) compared to greenfield investments, acquisitions generate more technological opportunities; (ii) location in a global city has a negative impact on the Indian companies’ innovation performance; (iii) the positive effect of acquisition decreases if the investment is focused on a global city. These findings should be informative for both firms and government authorities involved in developing going-global strategies.
Journal: Applied Economics
Pages: 1352-1365
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976383
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976383
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Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1352-1365
Template-Type: ReDIF-Article 1.0
Author-Name: Theodoros Skevas
Author-X-Name-First: Theodoros
Author-X-Name-Last: Skevas
Author-Name: Ioannis Skevas
Author-X-Name-First: Ioannis
Author-X-Name-Last: Skevas
Author-Name: Nicholas Kalaitzandonakes
Author-X-Name-First: Nicholas
Author-X-Name-Last: Kalaitzandonakes
Title: The role of peer effects on farmers’ decision to adopt unmanned aerial vehicles: evidence from Missouri
Abstract:
This paper examines the role of peer effects on farmers’ decision to adopt Unmanned Aerial Vehicles (UAVs). This relationship is analysed by means of a Bayesian spatial autoregressive probit model applied to spatially explicit data describing the awareness, attitudes, and adoption of UAVs by 809 Missouri farmers. Results show that it is not only the farmers’ characteristics, awareness, and attitudes towards UAVs that affect adoption, but also the adoption behaviour and traits of neighbouring peers. Peer effects arise both from UAV adoption of nearby farmers and from spatial spillovers of farmers’ characteristics, awareness of UAV agricultural applications, expectations of economic and environmental benefits from UAV use and perceived neighbour privacy concerns in the use of UAVs.
Journal: Applied Economics
Pages: 1366-1376
Issue: 12
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1976384
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976384
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Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1366-1376
Template-Type: ReDIF-Article 1.0
Author-Name: Kuang-Cheng Chai
Author-X-Name-First: Kuang-Cheng
Author-X-Name-Last: Chai
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Author-Name: Chin-Piao Yeh
Author-X-Name-First: Chin-Piao
Author-X-Name-Last: Yeh
Author-Name: Li-Mei Liang
Author-X-Name-First: Li-Mei
Author-X-Name-Last: Liang
Title: External profit pressure and operating efficiency: evidence from Chinese listed companies
Abstract:
Compared with western developed countries, the maturity and effectiveness of China’s securities market are relatively low, and investors are more likely to be swayed by analysts’ opinions. Efficiency is an important indicator to measure the competitiveness of listed companies, analysts’ earnings pressure can not only make management inclined to short-term investment behaviour, but also affect stakeholders’ views on the company, which is not conducive to the company’s efficiency and long-term development. Therefore, this study examines the impact of external profit pressure on the operating efficiency of Chinese listed companies and its internal mechanism. The technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) of the samples of listed companies are calculated by data envelopment method (DEA), it is found that external profit pressure has a negative impact on TE and PTE but a positive impact on SE. The institutional investor plays an intermediary role between external profit pressure and operating efficiency, and corporate social responsibility regulates the relationship between external profit pressure and institutional investors’ shareholding. The conclusion of the research has important theoretical value and practical significance in clarifying the relationship between external profit pressure and the operating efficiency.
Journal: Applied Economics
Pages: 1449-1459
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1977772
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1977772
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Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1449-1459
Template-Type: ReDIF-Article 1.0
Author-Name: Jorge N. Valero-Gil
Author-X-Name-First: Jorge N.
Author-X-Name-Last: Valero-Gil
Author-Name: Magali Valero
Author-X-Name-First: Magali
Author-X-Name-Last: Valero
Title: Human capital and state income differences in Mexico
Abstract:
We study the relationship between differences in human capital and differences in output per worker of the federal entities of Mexico. We consider both quantity and quality of education in human capital formation. Our measure of quality of education is constructed using the OECD’s programme for International Student Assessment (PISA) maths achievement test scores. Our results are consistent with different methodologies and data sources. We find that variations in human capital explain upwards of 40% of the variations in state GDP per hour worked. Our results indicate that Mexican states should place more emphasis both in the quantity as well as quality of schooling to support economic development of the states.
Journal: Applied Economics
Pages: 1544-1561
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980197
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980197
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Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1544-1561
Template-Type: ReDIF-Article 1.0
Author-Name: Qiao Wang
Author-X-Name-First: Qiao
Author-X-Name-Last: Wang
Title: Explaining the gender wage gap in China’s healthcare sector: a non-parametric analysis
Abstract:
This study provides empirical evidence for explaining the gender wage differential in China’s healthcare sector. We first propose a signalling game by capturing the progressive wage incentive in this sector. Next, we show that the model primitives are non-parametrically identified and estimable using recently developed methodologies related to measurement errors. Adopting a dataset from the China Household Income Project (CHIP2013), we provide empirical evidence for gender inequality in job placement for labour in the private sector. Moreover, there is no unequal treatment in China’s healthcare sector. Female labour in the private sector are more likely to subjectively choose job positions with less risk and more stable returns in response to the high-powered incentives that are provided, and this leads to gender wage differential in China’s healthcare sector.
Journal: Applied Economics
Pages: 1507-1526
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1979190
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1979190
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Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1507-1526
Template-Type: ReDIF-Article 1.0
Author-Name: Aktham Issa Maghyereh
Author-X-Name-First: Aktham Issa
Author-X-Name-Last: Maghyereh
Author-Name: Hussein A. Abdoh
Author-X-Name-First: Hussein A.
Author-X-Name-Last: Abdoh
Title: COVID-19 pandemic and volatility interdependence between gold and financial assets
Abstract:
By using high-frequency data, we examine the volatility linkages patterns between gold and several important asset classes including foreign currency, US equity, oil, bitcoin and agriculture commodity in the period surrounding the COVID-19 pandemic. To this end, we use the cross-wavelet power transform, the cross-wavelet coherency and the dynamic frequency-domain connectedness. We find that the pandemic caused a greater positive association in volatility series between gold and each of the financial assets considered. We document clear findings of phase difference of lead-lag volatility interdependence between gold and the financial assets that varies according to timescales and periods. In general, the long-term connections are strengthened during the pandemic except the case of bitcoin and soya bean suggesting a long-term diversification ability when including them in a portfolio containing gold.
Journal: Applied Economics
Pages: 1473-1486
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1977774
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1977774
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Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1473-1486
Template-Type: ReDIF-Article 1.0
Author-Name: Greg Filbeck
Author-X-Name-First: Greg
Author-X-Name-Last: Filbeck
Author-Name: Eric Robbins
Author-X-Name-First: Eric
Author-X-Name-Last: Robbins
Author-Name: Xin Zhao
Author-X-Name-First: Xin
Author-X-Name-Last: Zhao
Title: Social capital during the coronavirus pandemic: the value of corporate benevolence
Abstract:
In this paper, we explore market reaction to announcements of corporate donations associated with the COVID-19 crisis. Companies with larger firm size, higher leverage, higher institutional ownership, and higher ESG rankings are more likely to donate COVID relief. We observe statistically significant positive abnormal returns over the event window, driven by a subsample of community relief funds. Our results support the notion of a strategic, reputational premium for participating firms. Consistent with signalling theory, we find firms without ESG scores show positive share price responses to corporate benevolence announcements. This finding suggests the market is less likely to anticipate corporate acts of benevolence from firms with missing ESG scores. Our findings suggest that the market positively reacts to corporate philanthropy news during a crisis. The strongest stock market reaction is related to those firms with missing or less favourable ESG scores.
Journal: Applied Economics
Pages: 1460-1472
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1977773
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1977773
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Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1460-1472
Template-Type: ReDIF-Article 1.0
Author-Name: Dinesh Gajurel
Author-X-Name-First: Dinesh
Author-X-Name-Last: Gajurel
Author-Name: Akhila Chawla
Author-X-Name-First: Akhila
Author-X-Name-Last: Chawla
Title: The oil price crisis and contagion effects on the Canadian economy
Abstract:
Using a multifactor model, this paper investigates industry-level sensitivities to oil price changes and their spillover effects on 11 economic sectors in Canada during the 2014–2016 oil price crisis through a multisector analysis of sectoral equity indices. The three-factor model proposes a benchmark for interdependence between different sectors and examines the contagion effects transmitted via a common factor, a global oil factor, and a factor specific to the domestic oil and gas (O&G) sector during the crisis period. We provide empirical evidence of a strong and positive relationship between the global oil factor and the Canadian equity market. Results show that all sectoral equity portfolios are exposed to the global oil price. Also, though most economic sectoral portfolios experience contagion effects from the global oil market during the crisis period, some sectors show resilience. Finally, we find limited evidence on the effect of shocks originating in the O&G sector on other sectors of the Canadian economy. Our findings have implications for policy makers, managers and investors.
Journal: Applied Economics
Pages: 1527-1543
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980196
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980196
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Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1527-1543
Template-Type: ReDIF-Article 1.0
Author-Name: Yosef Bonaparte
Author-X-Name-First: Yosef
Author-X-Name-Last: Bonaparte
Author-Name: Rohan Christie-David
Author-X-Name-First: Rohan
Author-X-Name-Last: Christie-David
Author-Name: David Koslowsky
Author-X-Name-First: David
Author-X-Name-Last: Koslowsky
Title: Political heterogeneity, subjective optimism, and stock market outcomes
Abstract:
We demonstrate that political heterogeneity, proxied by the spread in subjective optimism between Democratic and Republican investors, affects stock market returns and volatility. Our intuition, drawn from the psychology literature on intergroup conflict, leads us to infer that increased political heterogeneity causes investors to become entrenched, not just in their political beliefs, but also in their economic outlook. Consequently, they become resistant to contrary news, and this behaviour is linked to lower market volatility and higher market returns. These findings are further underpinned by evidence that shows idiosyncratic volatility, which reflects the level of stock responses to firm-specific information, to decrease as political heterogeneity increases.
Journal: Applied Economics
Pages: 1487-1506
Issue: 13
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1977775
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1977775
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Handle: RePEc:taf:applec:v:54:y:2022:i:13:p:1487-1506
Template-Type: ReDIF-Article 1.0
Author-Name: Sie Won Kim
Author-X-Name-First: Sie Won
Author-X-Name-Last: Kim
Title: The effects of the OPT visa extension rule on STEM business programs in the U.S.
Abstract:
I investigate the effects of STEM Optional Practical Training (OPT) visa extension rule on Science, Technology, Engineering, and Mathematics (STEM) programme offerings and student degree attainment. The extension rule enables international students with STEM degrees to apply for a 17-month extension of the OPT period to work in the United States. Compared to studies on student choices, little is known about supply side responses to immigration policies. I use U.S. universities’ major code-level data from 2007 to 2018 and exploit a business major code designated as a STEM major in May 2012. Using a difference-in-differences model, I find that the OPT extension rule increases the probability of offering STEM-designated business programmes by 4 percentage points (16.2%) at the bachelor’s level and 12.2 percentage points (90.3%) at the master’s level. Event-study estimates show that the probability of offering STEM business programmes increases by 5.5 to 25.5 percentage points one to five years after the visa policy change at the master’s level. In addition, the extension of the OPT period increases the number of degrees awarded to international students by 62.2% at the master’s level in STEM business majors.
Journal: Applied Economics
Pages: 1654-1671
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1982131
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982131
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Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1654-1671
Template-Type: ReDIF-Article 1.0
Author-Name: Vito Pipitone
Author-X-Name-First: Vito
Author-X-Name-Last: Pipitone
Author-Name: Francesca Licari
Author-X-Name-First: Francesca
Author-X-Name-Last: Licari
Author-Name: Roberto Foderà
Author-X-Name-First: Roberto
Author-X-Name-Last: Foderà
Author-Name: Alessandra Faggian
Author-X-Name-First: Alessandra
Author-X-Name-Last: Faggian
Title: Internal migration and technical efficiency: the case of Italy
Abstract:
The aim of the paper is to contribute to the study of the determinants of the internal mobility of people. To study the determinants of internal migration, we introduce a new explanatory variable, i.e. technical efficiency of Local Labour Market Areas. This variable is particularly relevant, as it allows us to summarize the entrepreneurial capacity connected to the cultural and social context of an area. Our results, for the case of Italy, suggest that technical efficiency contributes greatly to explaining internal migratory flows and the various patterns of migration among different groups of individuals. By looking more specifically at different groups of individuals, we also uncover important differences between natives and foreigners and among different age-groups.
Journal: Applied Economics
Pages: 1639-1653
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980491
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980491
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Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1639-1653
Template-Type: ReDIF-Article 1.0
Author-Name: Yian Chen
Author-X-Name-First: Yian
Author-X-Name-Last: Chen
Title: Misallocation of Talent and Innovation: evidence from China
Abstract:
This study examined the effects of the misallocation of talent between the government and private enterprise sectors on innovation. By using the 2005 inter-census population survey and patent database, we find a negative correlation between misallocation of talent and innovation intensity. Exploring possible mechanisms, we conclude that this negative correlation between misallocation of talent and innovation was best explained by the negative impact of such misallocation upon entrepreneurship and R&D spending. That is, misallocations of talent reduce the willingness of people to be productive Schumpeterian entrepreneurs, and the majority of companies affected by such misallocation are reluctant to increase R&D spending. Most importantly, we find that excessive talent enters government departments in prefectures worse the suppression of innovation. This result sheds new light on the important role of allocation of talent on innovation for scholars and policymakers. Our findings have important implications for how to effectively allocate talent between the government vs.enterprise sectors in order to encourage more productive, value-creating activities.
Journal: Applied Economics
Pages: 1598-1624
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980202
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980202
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Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1598-1624
Template-Type: ReDIF-Article 1.0
Author-Name: Stoyan V. Stoyanov
Author-X-Name-First: Stoyan V.
Author-X-Name-Last: Stoyanov
Author-Name: Svetlozar T. Rachev
Author-X-Name-First: Svetlozar T.
Author-X-Name-Last: Rachev
Author-Name: Abootaleb Shirvani
Author-X-Name-First: Abootaleb
Author-X-Name-Last: Shirvani
Author-Name: Frank J. Fabozzi
Author-X-Name-First: Frank J.
Author-X-Name-Last: Fabozzi
Title: Option pricing in an investment risk-return setting
Abstract:
In this paper, we combine modern portfolio theory and option pricing theory so that a trader taking a position in a European option contract, the underlying assets, and a risk-free bond can construct an optimal portfolio while ensuring that the option is perfectly hedged at maturity. We derive both the optimal holdings in the underlying assets for the trader’s optimal mean-variance portfolio and the amount of unhedged risk prior to maturity. Solutions assuming the price dynamics in the underlying assets follow a discrete binomial model, and continuous diffusions, stochastic volatility, volatility-of-volatility, and Merton’s jump-diffusion model are derived.
Journal: Applied Economics
Pages: 1625-1638
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980490
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980490
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Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1625-1638
Template-Type: ReDIF-Article 1.0
Author-Name: Raquel Carrasco
Author-X-Name-First: Raquel
Author-X-Name-Last: Carrasco
Author-Name: Virginia Hernanz
Author-X-Name-First: Virginia
Author-X-Name-Last: Hernanz
Title: Dependent self-employment across Europe: involuntariness, country’s wealth and labour market institutions
Abstract:
This article investigates the degree of involuntariness in the entrepreneurial activity of the dependent solo self-employed, as well as its association with the country’s wealth and labour market institutions. Using the unique information available in the 2017 European Labour Force Survey (EU-LFS) for 29 countries, we can properly identify the dependent solo self-employed and analyse to what extent they behave in accordance with an occupational choice model when making their self-employment decision. For that, we account for the reasons why they enter into self-employment (voluntarily or involuntarily either out of necessity or requested by the former employer). The results indicate that involuntary self-employment, mostly due to being required by previous employer, significantly increases the probability of being dependent solo versus non-dependent self-employed. The wealthiest countries have a lower incidence of this group of workers, mainly if they are involuntary self-employed. Moreover, labour market institutions that decrease the flexibility of paid employment tend to increase the incidence of dependent solo self-employment. These results point to this group of workers being particularly vulnerable with the degree of vulnerability significantly increasing for those self-employed with a lesser degree of occupational choice.
Journal: Applied Economics
Pages: 1568-1583
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980200
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980200
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Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1568-1583
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Title: Interpolation and correlation
Abstract:
Historical time series sometimes have missing observations. It is common practice either to ignore these missing values or otherwise to interpolate between the adjacent observations and continue with the interpolated data as true data. This paper shows that interpolation changes the autocorrelation structure of the time series. Ignoring such autocorrelation in subsequent correlation or regression analysis can lead to spurious results. A simple method is presented to prevent spurious results. A detailed illustration highlights the main issues.
Journal: Applied Economics
Pages: 1562-1567
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980199
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980199
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Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1562-1567
Template-Type: ReDIF-Article 1.0
Author-Name: Bochuan Dai
Author-X-Name-First: Bochuan
Author-X-Name-Last: Dai
Author-Name: Ben R. Marshall
Author-X-Name-First: Ben R.
Author-X-Name-Last: Marshall
Author-Name: Nhut Hoang Nguyen
Author-X-Name-First: Nhut Hoang
Author-X-Name-Last: Nguyen
Author-Name: Nuttawat Visaltanachoti
Author-X-Name-First: Nuttawat
Author-X-Name-Last: Visaltanachoti
Title: Do stop-loss rules add value in international equity market allocation?
Abstract:
We consider the performance of stop-loss rules in international equity market allocation. Diversifying internationally gives the potential of larger returns but often involved higher risks, so it is a natural setting to consider these rules. Our results indicate that stop-loss rules, which involve closing positions that decline by a pre-specified percentage, are an important determinant of asset allocation in a parametric portfolio policy setting. They generate portfolios that have superior mean and risk-adjusted returns for investors. This result holds in general but is economically stronger in declining markets. The outperformance is robust to the inclusion of transaction costs.
Journal: Applied Economics
Pages: 1584-1597
Issue: 14
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980201
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980201
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Handle: RePEc:taf:applec:v:54:y:2022:i:14:p:1584-1597
Template-Type: ReDIF-Article 1.0
Author-Name: Abhinava Tripathi
Author-X-Name-First: Abhinava
Author-X-Name-Last: Tripathi
Author-Name: Alok Dixit
Author-X-Name-First: Alok
Author-X-Name-Last: Dixit
Author-Name: Vipul
Author-X-Name-First:
Author-X-Name-Last: Vipul
Title: Liquidity commonality in the cryptocurrency market
Abstract:
Motivated by the unique transaction cost structure of the cryptocurrency (CC) market11The authors thank the anonymous reviewer for the review of the manuscript and the insightful comments., this study investigates the phenomenon of liquidity commonality across a sample of 53 CCs. The study employs the google search volume index (GSVI) measure to capture the retail investor’s attention towards the CC market. Using the quantile regression method, we document the liquidity dynamics of CCs that is contrasting to other asset classes, and is ascribed to its unique transaction cost structure. In view of the relatively high liquidity commonality levels found in the CC market, this paper sounds a note of caution to retail investors on episodic non-availability of liquidity in CCs.
Journal: Applied Economics
Pages: 1727-1741
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1982128
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982128
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Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1727-1741
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Serkan Tosun
Author-X-Name-First: Mehmet Serkan
Author-X-Name-Last: Tosun
Author-Name: Serhat Yildiz
Author-X-Name-First: Serhat
Author-X-Name-Last: Yildiz
Title: The relationship between tax uncertainty and trade credit: firm-level evidence from the United States
Abstract:
We examine whether firms’ tax uncertainty affect their trade credit and inventory investment policies. Using a measure of tax uncertainty based on an accounting reserve for contingent tax liability, we find that tax uncertainty is negatively associated with trade credit use and inventory investment. In terms of economic significance, the effect of tax uncertainty on trade credit use is comparable to those of the firm’s cash flow and leverage. Overall, our findings highlight a new channel through which tax planning policies affect corporate decisions and show that the firm’s tax planning policies are important determinants of its trade credit use and inventory investment. Our results are robust to different empirical specifications and tests.
Journal: Applied Economics
Pages: 1742-1758
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1982129
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982129
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Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1742-1758
Template-Type: ReDIF-Article 1.0
Author-Name: Markus Zimmermann
Author-X-Name-First: Markus
Author-X-Name-Last: Zimmermann
Title: Explaining gaps in educational transitions between migrant and native school leavers
Abstract:
This paper analyzes the reasons for the gaps in post-schooling transitions between migrant and native pupils in Germany. While differences in parental background or skills partly explain the gaps, they are not sufficient. Conditional on these factors, there is a ‘polarization’ of educational choices: migrants are more likely to attend tertiary education, less likely to attend vocational education, and more likely to end without qualified training than their background and skills would predict. This is driven by the migrants’ more academic career aspirations and expectations before leaving school. On the one hand, these higher ambitions allow high-skilled migrants to achieve tertiary education despite their less favourable background. On the other hand, low-skilled migrants who in Germany’s tracked school system do not have the option to enter tertiary education, may be diverted from vocational training as a more viable alternative. Finally, possible explanations for the different career plans are discussed.
Journal: Applied Economics
Pages: 1759-1786
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1982130
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982130
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Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1759-1786
Template-Type: ReDIF-Article 1.0
Author-Name: Erick Kitenge
Author-X-Name-First: Erick
Author-X-Name-Last: Kitenge
Author-Name: Saima Bashir
Author-X-Name-First: Saima
Author-X-Name-Last: Bashir
Title: The effect of financial access on convergence: evidence from the US agricultural sector
Abstract:
We investigate the effect of financial access on convergence in the US agricultural sector. We find that financial access allows states with lower real per-capita agricultural production to catch up faster with those with higher real per-capita agricultural production. Our results are robust to various specifications and in the presence of other factors determinant of dynamics in the agricultural sector, such as the level of unemployment and competition. Therefore, this paper unveils higher opportunity costs of lower financial access in terms of welfare improvement, policy dissemination, and technological spillovers across the states. We recommend the implementations and dissemination of strategiesthat will ensure the availability, to all farmers, of innovations developed in agriculture.
Journal: Applied Economics
Pages: 1715-1726
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980495
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980495
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Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1715-1726
Template-Type: ReDIF-Article 1.0
Author-Name: Tianyuan Luo
Author-X-Name-First: Tianyuan
Author-X-Name-Last: Luo
Author-Name: Zhengfei Guan
Author-X-Name-First: Zhengfei
Author-X-Name-Last: Guan
Title: Public health insurance and migration of farm workers in the U.S
Abstract:
Labour shortages have been a major challenge for U.S. agriculture. Migrant farm workers who constitute a crucial agricultural labour force across the country have experienced a notable decline in recent years. Using the Propensity Score Matching method, this study examines how public health insurance of the Medicaid programme affects the migration of farm workers of different legal statuses. Unlike citizen farm workers, permanent-resident and undocumented farm workers decreased migration across states due to the impact of Medicaid. The findings suggest that a more suitable health insurance design that does not disrupt farm workers’ migration patterns during production seasons is needed to increase agricultural labour supply.
Journal: Applied Economics
Pages: 1672-1687
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980492
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980492
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Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1672-1687
Template-Type: ReDIF-Article 1.0
Author-Name: Ren Wang
Author-X-Name-First: Ren
Author-X-Name-Last: Wang
Author-Name: Jie Hou
Author-X-Name-First: Jie
Author-X-Name-Last: Hou
Title: Collateral versus crowding out: policy implications on China’s housing and manufacture sectors
Abstract:
We study the mechanisms through which macroeconomic level shocks, namely macro easing and industry curbing policies from the government and housing preference shock from the households, exert their impact on the real estate and manufacturer sectors in China. Our analysis shows that whilst the macro easing monetary policy stimulates overall investment in the two sectors, it also causes the crowding out effect, inducing the capital flow disproportionally to the real estate industry. In this sense, it resembles the positive housing preference shock by contributing to the imbalance between housing and real industry. Meanwhile, policies aimed at curbing real estate boom have a leakage effect, which can offset the crowding out effect from the housing preference and easing monetary policy shocks. Both crowding out and leakage effects stem from the heterogeneous characteristics of durable and non-durable goods produced by real estate and manufacture sectors, respectively, instead of from heterogeneous borrowing constraints. Our results add to the understanding of transmission mechanisms of different policies on production sectors and provide insights for policy makers on how to effectively apply policies to affect the economy in a macro-prudential way.
Journal: Applied Economics
Pages: 1700-1714
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980494
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980494
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Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1700-1714
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-François Outreville
Author-X-Name-First: Jean-François
Author-X-Name-Last: Outreville
Author-Name: Lara Agnoli
Author-X-Name-First: Lara
Author-X-Name-Last: Agnoli
Author-Name: Eric Le Fur
Author-X-Name-First: Eric
Author-X-Name-Last: Le Fur
Title: Ranking journals: the Best-Worst scaling approach applied to the field of wine economics
Abstract:
What are the major journals for wine economists? Which ones are the most influential? Journal rankings are intended to reflect the place of a journal within its field, the relative difficulty of being published in that journal, and the prestige associated with it. Since no consensus has been reached as to the superiority of a given methodology, the objective of this paper is to present a new peer evaluation methodology based on a Best-Worst scaling approach applied to the field of research in wine economics and business. The list of relevant journals was drawn from a citation-based analysis and a two-steps survey was launched in 2020 involving academic researchers in this field. The results support the idea that the Best-Worst approach is a useful tool to rank journals through peer evaluation in new fields of research. Further, this exercise is of potential interest for the field of wine economics and those active within it.
Journal: Applied Economics
Pages: 1688-1699
Issue: 15
Volume: 54
Year: 2022
Month: 03
X-DOI: 10.1080/00036846.2021.1980493
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980493
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Handle: RePEc:taf:applec:v:54:y:2022:i:15:p:1688-1699
Template-Type: ReDIF-Article 1.0
Author-Name: Liangyong Wan
Author-X-Name-First: Liangyong
Author-X-Name-Last: Wan
Author-Name: Rui Li
Author-X-Name-First: Rui
Author-X-Name-Last: Li
Author-Name: Yujiao Chen
Author-X-Name-First: Yujiao
Author-X-Name-Last: Chen
Title: Negative performance feedback and corporate venture capital: The moderating effect of CEO overconfidence
Abstract:
Corporate venture capital (CVC) has consistently proven its importance for firm innovation, growth, and other strategic goals. However, research on the antecedents of CVC is still scarce. Drawing on the behavioural theory of the firm, we examine how performance feedback affects the decision to pursue CVC. Empirical results using panel data on Chinese A-share listed firms from 2011 to 2019 indicate that there is an inverted U-shaped relationship between negative performance feedback and the probability of initiating CVC. Moreover, such an effect is moderated by CEO overconfidence in that it weakens the inverted U-shaped relationship. Further study shows that CVC aids in firm innovation and creates firm value. Our findings highlight the importance of performance feedback on corporate venture capital.
Journal: Applied Economics
Pages: 1829-1843
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1982133
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982133
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Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1829-1843
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Biewen
Author-X-Name-First: Martin
Author-X-Name-Last: Biewen
Author-Name: Jakob Schwerter
Author-X-Name-First: Jakob
Author-X-Name-Last: Schwerter
Title: Does more maths and natural sciences in high school increase the share of female STEM workers? Evidence from a curriculum reform
Abstract:
This paper studies the consequences of a curriculum reform of the last two years of high school in one of the German federal states on the share of male and female students who complete degrees in STEM subjects and later work in STEM occupations. The reform had two important aspects: (i) it equalized all students’ exposure to maths by making advanced maths compulsory in the last two years of high school; and (ii) increased the instruction time from three to four hours per week and increased the level of instruction in maths and the natural sciences for some 80% of students, more so for females than for males. Our results suggest that, despite its substantial nature, the reform did not change the share of men completing STEM degrees but reduced the share of women graduating from STEM programmes. Moreover, we do not find general reform effects on the share of individuals working in STEM occupations after graduation for both men and women.
Journal: Applied Economics
Pages: 1889-1911
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983139
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983139
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Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1889-1911
Template-Type: ReDIF-Article 1.0
Author-Name: Edward Lawrence
Author-X-Name-First: Edward
Author-X-Name-Last: Lawrence
Author-Name: Mehul Raithatha
Author-X-Name-First: Mehul
Author-X-Name-Last: Raithatha
Author-Name: Robinson Reyes-Peña
Author-X-Name-First: Robinson
Author-X-Name-Last: Reyes-Peña
Title: The differing impact of COVID-19 across Republican and Democratic states
Abstract:
Decision-making by governments during the COVID-19 health crisis pertains a delicate balance between physical and financial health of individuals. We compare the health and economic outcomes resulting from the respective responses adopted by Republican and Democratic states in the US. Our results show that the more restrictive measures adopted by Democratic states resulted in more severe economic shocks as proxied by lower levels of employment, lower levels of individuals’ earnings and an inferior performance in regional banking activity compared to Republican states. Although the number of infections is higher in Republican states, we find that the level of hospitalizations and mortality are not significantly different across Republican and Democratic states.
Journal: Applied Economics
Pages: 1864-1876
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983137
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983137
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Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1864-1876
Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Life expectancy in nursing homes
Abstract:
It is well known that life expectancy in nursing homes (NHs) is lower for older adults than those residing elsewhere. In this paper, we attempt to discover the exact extent of this loss of life expectancy, and whether it can be explained by pre-existing health state conditions, especially the seriousness of dementia. We use a parametric survival model, on a large data set spanning up to 13 years, which covers health states and types of residence for all time periods until a person dies. In the absence of health state controls, the loss of life expectancy is 47 months. Accounting for health states still leads to a 41-month loss of life. Even those with serious dementia would live longer lives if not residing in a NH. We then value the estimated loss of life years. The losses are large, equal to $1.7 million per NH resident, and $1.87 trillion for the US NH population.
Journal: Applied Economics
Pages: 1877-1888
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983138
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983138
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Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1877-1888
Template-Type: ReDIF-Article 1.0
Author-Name: Vaibhav Lalwani
Author-X-Name-First: Vaibhav
Author-X-Name-Last: Lalwani
Author-Name: Vedprakash Vasantrao Meshram
Author-X-Name-First: Vedprakash Vasantrao
Author-X-Name-Last: Meshram
Title: The cross-section of Indian stock returns: evidence using machine learning
Abstract:
We test whether 35 stock characteristics can explain the cross-section of stock returns in India. We address the limitations of previous studies by using a comprehensive, survivorship bias free sample of all firms listed on the major Indian stock exchanges from 1994 to 2019. Results from Fama-Macbeth regressions show as many as 14 predictors breaching the significance threshold of t-stats greater than three. We also use machine learning methods to generate rolling one-month ahead out-of-sample forecasts of stock returns for all firms in our sample. We find substantial improvement in forecast accuracy when using machine learning compared to OLS. Further, we run additional tests for understanding the economic significance of our findings. Investment strategies based on model forecasts provide significant returns to investors.
Journal: Applied Economics
Pages: 1814-1828
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1982132
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1982132
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Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1814-1828
Template-Type: ReDIF-Article 1.0
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Bakr Al-Gamrh
Author-X-Name-First: Bakr
Author-X-Name-Last: Al-Gamrh
Author-Name: Sultan Sikandar Mirza
Author-X-Name-First: Sultan Sikandar
Author-X-Name-Last: Mirza
Title: Corporate social responsibility and firm-value: the role of sensitive industries and CEOs power in China
Abstract:
Using a large panel dataset of 861 listed Chinese firms, the present study investigates whether corporate social responsibility (CSR) affects firm-value. It examines the influence of five CSR dimensions on firm-value. Then, it pinpoints the moderating impact of industry-sensitivity and power concentration of the CEO. In contrast to developed economy’s evidence, the results show an overall negative impact of CSR on firm-value. Looking closer at the dimensions separately, we find a negative impact of most of the CSR dimensions and a positive impact of some other CSR dimensions on firm-value. However, we observe that CSR enhances the value of firms operating in sensitive industries. Similarly, we find that a powerful CEO can also create firm-value through CSR by aligning CSR practices with the firms’ objectives. Our results are sufficiently rigorous to alternate proxies of CSR.
Journal: Applied Economics
Pages: 1844-1863
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983136
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983136
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenyan Zhuo
Author-X-Name-First: Wenyan
Author-X-Name-Last: Zhuo
Author-Name: Jingru Wang
Author-X-Name-First: Jingru
Author-X-Name-Last: Wang
Author-Name: Jiawu Peng
Author-X-Name-First: Jiawu
Author-X-Name-Last: Peng
Title: The interaction of retailer’s investment strategy and supplier’s entry modes into the retail market
Abstract:
This paper considers the interaction between the retailer’s investment strategy and the mode by which the supplier enters the market in a two-echelon supply chain. The retailer who invests in upgrading the supplier’s production technology, may face a supplier entering the market through encroachment or holding shares. Our findings indicate that supplier encroachment curbs the retailer’s incentive to invest in technology upgrades. In contrast, the supplier holding the retailer’s shares enhances the retailer’s incentive to invest in technology upgrades. In particular, if the supplier chooses to hold shares in the retailer and the percentage of the retailer’s shares held by the supplier is small, a ‘win-win’ result can be achieved. Moreover, our study also reveals that the retailer’s investment strategy can impact the supplier’s entry mode. Without the retailer’s investment, the supplier prefers to enter the market through encroachment. However, when the retailer invests in upgrading the supplier’s production technology, we confirm that the supplier would choose to hold shares in the retailer under certain conditions. Finally, we further extend two single-entry modes to a mixed-entry mode in which the supplier enters the retail market by encroachment and holding the retailer’s shares simultaneously.
Journal: Applied Economics
Pages: 1787-1813
Issue: 16
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1998329
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998329
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Handle: RePEc:taf:applec:v:54:y:2022:i:16:p:1787-1813
Template-Type: ReDIF-Article 1.0
Author-Name: Chai Bin Feng
Author-X-Name-First: Chai Bin
Author-X-Name-Last: Feng
Author-Name: Sultan Sikandar Mirza
Author-X-Name-First: Sultan Sikandar
Author-X-Name-Last: Mirza
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Author-Name: Ammar Ali Gull
Author-X-Name-First: Ammar Ali
Author-X-Name-Last: Gull
Title: The impact of financial flexibility and directors’ academic experience on corporate R&D investments: a quantile regression approach
Abstract:
This study investigates the impact of financial flexibility and academic experience of a firm’s board on corporate R&D investments in China. It also explores the moderating role of directors’ academic experience on the relationship between financial flexibility and R&D investments. We apply ordinary least square, fixed effects and quantile regression analysis using panel data of 2,195 A-share firms listed on Shanghai and Shenzhen stock exchanges during the period from 2011 to 2018. We find that both financial flexibility and directors’ academic experience promote R&D investments of Chinese non-financial firms. We also observe that directors’ academic experience weakens the positive impact of financial flexibility on R&D investments for firms operating in underdeveloped financial regions, whereas it strengthens the positive impact of financial flexibility on R&D investments for firms operating in developed financial regions. Our quantile regression results suggest that academic experience has a highly significant positive moderating impact on the financial flexibility of lower R&D investment firms relative to high R&D investment firms. These results are robust to alternate proxy of financial flexibility and endogeneity issues due to reverse causality.
Journal: Applied Economics
Pages: 1974-1988
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983145
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983145
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Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1974-1988
Template-Type: ReDIF-Article 1.0
Author-Name: Aaron M. Gamino
Author-X-Name-First: Aaron M.
Author-X-Name-Last: Gamino
Title: The impact of the consolidated omnibus reconciliation act of 1985 on young adult health insurance coverage
Abstract:
The Consolidated Omnibus Reconciliation Act of 1985 (COBRA) contained provisions granting individuals the opportunity to continue employment-based insurance coverage following qualifying events which would otherwise cause the loss of coverage. In this paper, I examine the impact of COBRA coverage on young adult health insurance coverage following the loss of dependent status, a qualifying event. I use the 1984 to 1989 panels of the Survey of Income Program Participation in a difference-in-differences framework to provide the first estimates of COBRA’s impact on young adult insurance status. I find that individuals in the affected age group were 4.5 percentage points more likely to be insured following COBRA going into effect. This increase is largely due to gains in employer sponsored insurance – particularly as a dependent – and is robust to a variety of sensitivity checks. I find considerable heterogeneity by sex; insurance gains are concentrated among young men. These findings suggest that COBRA’s access to continued employer sponsored coverage after ageing out as a dependent reduced uninsurance among young adults.
Journal: Applied Economics
Pages: 1945-1956
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983142
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983142
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Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1945-1956
Template-Type: ReDIF-Article 1.0
Author-Name: Sedjro Aaron Alovokpinhou
Author-X-Name-First: Sedjro Aaron
Author-X-Name-Last: Alovokpinhou
Author-Name: Christopher Malikane
Author-X-Name-First: Christopher
Author-X-Name-Last: Malikane
Author-Name: Tshepo Mokoka
Author-X-Name-First: Tshepo
Author-X-Name-Last: Mokoka
Title: Inventory dynamics and endogenous persistence in a new Keynesian model
Abstract:
We show that a New Keynesian model incorporating inventory dynamics can generate a hump-shaped response of macro-variables to shocks even without habit formation. The impulse responses from the calibrated model show that, in the absence of habit formation, the macro-variables, including output and consumption gaps and the real wage, display a gradual hump-shaped response to monetary policy shocks. We calibrate seven other variants of the model without habit formation. We find that the results still hold in a flexible price model, while the presence of inventories drives the persistence of the macro-variables. Besides, the model replicates most of the empirical business cycle regularities of inventories and the inventory–sales ratio in the data.
Journal: Applied Economics
Pages: 1957-1973
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983144
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983144
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Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1957-1973
Template-Type: ReDIF-Article 1.0
Author-Name: Selina Bruns
Author-X-Name-First: Selina
Author-X-Name-Last: Bruns
Author-Name: Oliver Mußhoff
Author-X-Name-First: Oliver
Author-X-Name-Last: Mußhoff
Title: An empirical identification of temptation goods: Perceptions of Cambodian smallholder farmers
Abstract:
Spending money on goods that satisfy oneself at the moment but not necessarily in the future – temptation goods – is a bothersome habit that applies to most people. However, with very low income, spending on temptation goods can potentially trap a household in chronic poverty, as such spending further minimizes the little financial resources crucially needed. Yet, although studies have included temptation goods into their household analysis, there is no empirical in-depth investigation of what exactly is perceived as a temptation good by one of the most marginalized groups: smallholder farmers residing in the Global South. Therefore, employing descriptive statistics and hierarchical cluster analysis, this paper presents an empirical definition of temptation goods provided by 277 smallholder farmers from rural Cambodia. Our findings partly differ from those found in the literature. For example, while farmers most frequently perceive alcohol, tobacco, and sweets as tempting, they also define unexpected items such as communication, recreation and entertainment, fruit, clothes, and going to the hairdresser as temptation goods. The results hold strong importance for accurate calculations and to understand the often puzzling spending behaviour of the poor, as well as coming up with custom-fit policy interventions that promote long-term welfare-increasing consumption behaviour.
Journal: Applied Economics
Pages: 1999-2012
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983147
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983147
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Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1999-2012
Template-Type: ReDIF-Article 1.0
Author-Name: Mahmoud Hassan
Author-X-Name-First: Mahmoud
Author-X-Name-Last: Hassan
Author-Name: Damien Rousselière
Author-X-Name-First: Damien
Author-X-Name-Last: Rousselière
Title: Does increasing environmental policy stringency lead to accelerated environmental innovation? A research note
Abstract:
This research note empirically investigates the effect of stringent environmental regulations on environmentally friendly technological innovation for 27 OECD countries from 1990 to 2015, using the two-step system-GMM estimation method for a linear dynamic panel data model. We further test the robustness of the empirical results by the method of correlated random effects for dynamic panel data estimated by Maximum Likelihood, the fixed effect with Driscoll–Kraay standard errors and the mixed-effect maximum-likelihood estimator. Overall, we find that increasing environmental policy stringency leads to accelerated environmental innovation. In addition, the non-market-based environmental policy instruments are found to stimulate more environmental innovation than market -based instruments. Thus, the instruments based on command and control policies are more effective than price mechanisms in inducing eco-innovation.
Journal: Applied Economics
Pages: 1989-1998
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983146
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983146
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Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1989-1998
Template-Type: ReDIF-Article 1.0
Author-Name: Gilberto Hanssen Androvandi
Author-X-Name-First: Gilberto Hanssen
Author-X-Name-Last: Androvandi
Author-Name: Carlos Enrique Carrasco-Gutierrez
Author-X-Name-First: Carlos Enrique
Author-X-Name-Last: Carrasco-Gutierrez
Author-Name: Benjamin Miranda Tabak
Author-X-Name-First: Benjamin Miranda
Author-X-Name-Last: Tabak
Title: Financial innovation and moral hazard: the case of time deposits with special guarantee
Abstract:
The macroprudential policy mechanism of Time Deposits with Special Guarantee (TDSG) was introduced in Brazil after the 2008 global financial crisis to prevent a liquidity shock in the banking sector. The TDSG is a form of deposit insurance established to avoid bank runs and protect depositors in the event of bankruptcy of financial institutions. In this paper, we study the impact of the TDSG policy on the moral hazard of small and medium-sized Brazilian banks based on data from 101 banks in the period 2007 to 2015. The empirical evaluation relies on difference-in-differences estimators with fixed effects. The results provide evidence validating the hypothesis of moral hazard associated with the TDSG policy.
Journal: Applied Economics
Pages: 1934-1944
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.2020712
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020712
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Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1934-1944
Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy Clark
Author-X-Name-First: Jeremy
Author-X-Name-Last: Clark
Author-Name: John Spraggon
Author-X-Name-First: John
Author-X-Name-Last: Spraggon
Title: Increasing microfinance risk tolerance through revenue sharing: an experiment
Abstract:
Microfinance has been found to be less effective for high risk/return borrowing groups. We report a group liability microfinance lab experiment that tests a mechanism to raise repayment rates among such borrowers. The mechanism offers partial revenue sharing among groups of borrowers, agreed to before individual business outcomes are realized and loan repayment is due. Such revenue sharing makes loan repayment optimal under more outcome states, increasing the expected benefit to each borrower of repayment to qualify for future loans. We further test the effect of allowing borrowers to renege on revenue sharing agreements after learning their business outcomes, prior to loan repayment decisions. Our results illustrate the problem that exogenously higher risk/return borrowing groups achieve lower loan repayment rates than lower risk/return borrowing groups. We find evidence that optional revenue sharing significantly increases high risk borrowers’ repayment rates, but that most of this gain is lost if they can renege on revenue sharing agreements.
Journal: Applied Economics
Pages: 1912-1933
Issue: 17
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983140
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983140
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Handle: RePEc:taf:applec:v:54:y:2022:i:17:p:1912-1933
Template-Type: ReDIF-Article 1.0
Author-Name: Jiali Fang
Author-X-Name-First: Jiali
Author-X-Name-Last: Fang
Author-Name: Wei Hao
Author-X-Name-First: Wei
Author-X-Name-Last: Hao
Author-Name: Udomsak Wongchoti
Author-X-Name-First: Udomsak
Author-X-Name-Last: Wongchoti
Title: Time-series momentum in individual stocks: is it there and where to look?
Abstract:
Time series momentum (TSMOM), which is found in various asset classes, offers investors several practical advantages over traditional cross-sectional momentum. However, recent studies raise questions about its general existence and urge researchers to extensively search for optimal combinations in time horizon, asset characteristics, and market conditions in which TSMOM may be profitable. With a comprehensive study covering 2.25 million monthly returns on over 20,000 US individual stocks from 1986 to 2017, we find that TSMOM profits are more prominent among stocks and during market states characterized by inferior information dissemination.
Journal: Applied Economics
Pages: 2048-2066
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983151
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983151
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Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2048-2066
Template-Type: ReDIF-Article 1.0
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Tatiana Sokolova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Sokolova
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Astonishing insights: emerging market debt spreads throughout the pandemic
Abstract:
We investigate how Covid-19 affects the emerging market (EM) bonds by analysing, on a standalone basis, investment grade (IG) and high yield (HY) debt per type of issuer. We document evidence that the option-adjusted spreads (OAS) of the IG and HY financials have recovered to the pre-Covid levels by the end of year 2020, while for the HY sovereigns and corporates the OAS remain twice as wide as before the pandemic. The weight of the liquidity component in the OAS for the IG sovereigns has climbed to astonishing 45%. Our results are potentially useful for investors, traders, risk managers and regulators.
Journal: Applied Economics
Pages: 2067-2076
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1984383
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1984383
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Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2067-2076
Template-Type: ReDIF-Article 1.0
Author-Name: Lifei Gao
Author-X-Name-First: Lifei
Author-X-Name-Last: Gao
Author-Name: Jing Guan
Author-X-Name-First: Jing
Author-X-Name-Last: Guan
Author-Name: Guojun Wang
Author-X-Name-First: Guojun
Author-X-Name-Last: Wang
Title: Does media-based health risk communication affect commercial health insurance demand? Evidence from China
Abstract:
In recent years, the mass media (such as TV shows and movies) plays an important role in communication with the general public. In this paper, we investigate the impact of a recent movie from China, ‘Dying to Survive’, on the demand for commercial health insurance. To explore this impact, a fixed-effect model and instrumental variable estimation are utilized, and the causal effect of movie-based health risk communication on commercial health insurance demand is studied. The result shows that the cumulative box office value of a movie has a significantly positive impact on the income from commercial health insurance premium, with a one- or two-day lag. This movie has encouraged viewers to purchase short-term commercial health insurance rather than long-term insurance. In addition, the heterogeneity of the impact exists for movie arrangement rate, average family size, urbanization rate, medical resource level, and per capita disposable income. The results show that sufficient health risk communication can improve the social ‘visibility’ of health risk.
Journal: Applied Economics
Pages: 2122-2134
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985071
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985071
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Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2122-2134
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael Sánchez
Author-X-Name-First: Rafael
Author-X-Name-Last: Sánchez
Author-Name: Javier Finot
Author-X-Name-First: Javier
Author-X-Name-Last: Finot
Author-Name: Mauricio G. Villena
Author-X-Name-First: Mauricio G.
Author-X-Name-Last: Villena
Title: Gender wage gap and firm market power: evidence from Chile
Abstract:
The main aim of this work is to explain the Chilean gender wage gap using a dynamic monopsony model to estimate the labour supply elasticities at the firm level. Our results suggest that the elasticities of labour supply to firms are small, which implies that firms have labour market power. We also found that Chilean men would earn approximately 22% more than women as a result of the difference in labour supply elasticities by gender, ceteris paribus. Furthermore, we find that in the long run, the magnitude of between-firm differences in elasticities are higher than within-firm differences, which suggests that the gender wage gap is driven by structural factors that generate gender sorting to firms. Finally, since we use the same methodology and restrictions used in previous literatur for the US, we are able to empirically compare the elasticities for a high-income country (the US) are higher than those obtained for a middle-income country (Chile) for both men and women, which suggests higher labour market frictions in middle-income countries. The main difference between the US and Chile comes from the low labour supply elasticity of Chilean women, which appears to be explained from their low recruitment elasticity from non-employment.
Journal: Applied Economics
Pages: 2109-2121
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985070
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985070
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Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2109-2121
Template-Type: ReDIF-Article 1.0
Author-Name: William Jergins
Author-X-Name-First: William
Author-X-Name-Last: Jergins
Title: The effect of marijuana on labour market outcomes:evidence from medical marijuana laws
Abstract:
We use the staggered roll out of medical marijuana laws (MMLs) as a plausibly exogenous shock to individuals’ marijuana used to identify the effect of marijuana on labour-market outcomes. While our analysis largely confirms that MMLs do not affect labour market outcomes, we find two results that are not seen in the prior literature. We find that MMLs increase the probability that a 30–39 year-old woman is in the labour force, and decrease the time that unemployed 20–29 year-old men spend looking for a job. While both results are imprecisely estimated, they are generally robust to a large number of robustness checks we employ.
Journal: Applied Economics
Pages: 2077-2108
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985069
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985069
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Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2077-2108
Template-Type: ReDIF-Article 1.0
Author-Name: Faheem Aslam
Author-X-Name-First: Faheem
Author-X-Name-Last: Aslam
Author-Name: Khurrum S. Mughal
Author-X-Name-First: Khurrum S.
Author-X-Name-Last: Mughal
Author-Name: Saqib Aziz
Author-X-Name-First: Saqib
Author-X-Name-Last: Aziz
Author-Name: Muhammad Farooq Ahmad
Author-X-Name-First: Muhammad Farooq
Author-X-Name-Last: Ahmad
Author-Name: Dhoha Trabelsi
Author-X-Name-First: Dhoha
Author-X-Name-Last: Trabelsi
Title: COVID-19 pandemic and the dependence structure of global stock markets
Abstract:
In this paper, we examine the changes in the dependence structure of global stock markets amid the outbreak of COVID-19. We divide 56 stock markets into developed, emerging, and frontier markets and study their daily price data from 15 October 2019 to 17 August 2020 using the canonical vine (C-vine) copula approach. We observed significant changes in the dependence structure, the selection of the pair copula families, and the associated parameter estimates in the tree. In developed markets, during the COVID-19, the dependence of markets shifted from the Netherlands to France while the root node position of Hungary replaced the market of Poland. The frontier markets showed strong dependence signs with Mauritius before COVID-19 and Slovenia during the outbreak. Our findings are of interest to regulators and practitioners, particularly in monitoring the value at risk of portfolios and adopting appropriate strategies in light of the varying dynamics of stock markets during extreme events, such as COVID-19.
Journal: Applied Economics
Pages: 2013-2031
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983148
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983148
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Handle: RePEc:taf:applec:v:54:y:2022:i:18:p:2013-2031
Template-Type: ReDIF-Article 1.0
Author-Name: María Patricia Durango
Author-X-Name-First: María Patricia
Author-X-Name-Last: Durango
Author-Name: Juan Lara-Rubio
Author-X-Name-First: Juan
Author-X-Name-Last: Lara-Rubio
Author-Name: Andrés Navarro Galera
Author-X-Name-First: Andrés Navarro
Author-X-Name-Last: Galera
Author-Name: Antonio Blanco-Oliver
Author-X-Name-First: Antonio
Author-X-Name-Last: Blanco-Oliver
Title: The effects of pricing strategy on the efficiency and self-sustainability of microfinance institutions: a case study
Abstract:
To become financially self-sustainable, Microfinance Institutions (MFIs) trigger a schism in their management modes, thereby promoting efficiency and competitiveness. The increase of competition in the microfinance sector motivated by the entry of banks into this industry is another incentive for MFIs to implement advanced management systems. Pricing systems and credit-scoring models should contribute towards the efficiency of MFIs, thereby improving their competitiveness and self-sustainability in an increasingly constrained environment. However, to the best of our knowledge, no empirical evidence exists on the application of pricing strategies by MFIs. Therefore, this paper builds a microcredit-pricing system and determines the capital requirements inspired by the Basel III Internal-Rating Based (IRB) approach, which is underpinned by multilayer perceptron (MLP) credit-scoring. We find that the implementation of an IRB approach allows the analysed MFI to reduce its capital requirement and current interest rates by $200,000 and 30.12%, respectively. Moreover, this approach constitutes a relevant tool for the control of credit risk and the minimization of default losses. Consequently, the adoption of pricing and credit-scoring systems provides MFIs with a power management tool to compete against banks by reducing the interest rate, capital requirements, and credit losses, and therefore increases their financial self-sustainability.
Journal: Applied Economics
Pages: 2032-2047
Issue: 18
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1983149
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983149
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Template-Type: ReDIF-Article 1.0
Author-Name: El Mostafa Bentour
Author-X-Name-First: El Mostafa
Author-X-Name-Last: Bentour
Title: The effects of public debt accumulation and business cycle on government spending multipliers
Abstract:
We examine the impact of public debt changes as well as the effects of the business cycle on the expenditure multipliers. We adopt the structural vector autoregressive (SVAR) methodology on quarterly data for a sample of 18 OECD countries. The results show that expenditure multipliers are sensitive to the fiscal position, particularly the public debt changes as well as the business cycle. In particular, fiscal multipliers recorded high size in recessions than in expansions, in line with the recent findings about fiscal multipliers. Considering the public debt, leads to larger multipliers in debt accumulation under recessions than in debt accumulation under expansions.Many studies confirmed weak fiscal multipliers in expansions than in recessions, while others confirmed lower multipliers for countries with weak fiscal position. Our paper adds to this literature by joining the two effects of the business cycle and fiscal position, showing that fiscal position acts to lower multipliers when debt is rather accumulated in times of expansion than in recessions. We conclude that in times of expansion, the accumulated public debt effects are likely transmitting through Ricardian equivalence effect and concerns from expected high long-term interest rate leading to crowding-out effect, thus, lowering fiscal multipliers.
Journal: Applied Economics
Pages: 2231-2256
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985721
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985721
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Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2231-2256
Template-Type: ReDIF-Article 1.0
Author-Name: Suikai Gao
Author-X-Name-First: Suikai
Author-X-Name-Last: Gao
Author-Name: Guillaume Bagnarosa
Author-X-Name-First: Guillaume
Author-X-Name-Last: Bagnarosa
Author-Name: Michael Dowling
Author-X-Name-First: Michael
Author-X-Name-Last: Dowling
Author-Name: Roman Matkovskyy
Author-X-Name-First: Roman
Author-X-Name-Last: Matkovskyy
Author-Name: Dima Tawil
Author-X-Name-First: Dima
Author-X-Name-Last: Tawil
Title: Price transmission in European fish markets
Abstract:
We investigate price transmission in European fisheries markets. To start, we identify clusters of fish species both cross-regionally and within countries. A major issue in the clustering exercise is missing data due to reporting issues and seasonality in landed fish catches. To handle this we implement k-POD clustering which unlike traditional k-means clustering is able to account for missing data in clustering. Next, we move on to our primary goal of investigating price transmission through modelling price volatility spillovers. A missing value VAR framework is applied to identify directional spillovers among fish prices within clusters. We show that the directional volatility spillover effect is more prominent within each country for different species clusters than that for species cross-regionally. This suggests price transmission within localized markets for fish, rather than cross-regional markets for individual species. Although there are some neighbour country effects and some species that appear to be priced cross-regionally. Our study is the first to explore these multiple fish pricing dynamics, particularly taking account of the important issue of missing data which is a notable feature of fish pricing data.
Journal: Applied Economics
Pages: 2194-2213
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985075
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985075
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Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2194-2213
Template-Type: ReDIF-Article 1.0
Author-Name: Manisha Chakrabarty
Author-X-Name-First: Manisha
Author-X-Name-Last: Chakrabarty
Author-Name: Subhankar Mukherjee
Author-X-Name-First: Subhankar
Author-X-Name-Last: Mukherjee
Title: A pandemic and economic slowdown: the case of India
Abstract:
In this article, we use a novel dataset on new investment projects undertaken, available for states in India in quarterly frequency, to forecast economic activities in the wake of the ongoing Covid-19 pandemic. Panel data estimates for the country, employing fixed effect and Generalized Method of Moments, show a drop of approximately 50% in investment count during the financial years 2019–20 to 2021–22, compared to the counterfactual projection of an increase of 38% over the same period. State-level analysis reveals similar patterns, even though with considerable heterogeneity – relatively economically well-developed states may witness higher reduction in investment compared to the less developed ones. Given that incidence of Covid cases is also relatively higher in the more developed states, our findings can help in formulating policies appropriate for each state. This study can be generalized in the following three ways: it can be extended over a longer period of time, it can be applied in future crisis periods, and it can be made more precise given more granular data is available.
Journal: Applied Economics
Pages: 2214-2230
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985077
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985077
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Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2214-2230
Template-Type: ReDIF-Article 1.0
Author-Name: Julio López-Laborda
Author-X-Name-First: Julio
Author-X-Name-Last: López-Laborda
Author-Name: Guillermo Peña
Author-X-Name-First: Guillermo
Author-X-Name-Last: Peña
Title: Financial VAT may improve trade openness
Abstract:
This paper theoretically and empirically analyzes how the taxation of financial services under VAT (‘financial VAT’) influences trade openness. The empirical analysis uses data from the OECD and 36 European Union countries for the period 1960–2019. Dynamic panel data techniques are used, concretely the GMM System, and an unbalanced panel is handled. The results corroborate that financial VAT, and in particular the ‘option-to-tax’ method applied by some countries in the European Union, are positively associated with a country’s trade openness.
Journal: Applied Economics
Pages: 2148-2160
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985072
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985072
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Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2148-2160
Template-Type: ReDIF-Article 1.0
Author-Name: Eyup Dogan
Author-X-Name-First: Eyup
Author-X-Name-Last: Dogan
Author-Name: Mara Madaleno
Author-X-Name-First: Mara
Author-X-Name-Last: Madaleno
Author-Name: Dilvin Taskin
Author-X-Name-First: Dilvin
Author-X-Name-Last: Taskin
Title: Financial inclusion and poverty: evidence from Turkish household survey data
Abstract:
Even though poverty is highly felt in developing economies, the lack of relevant and complete micro-level data limits understanding which households are more exposed to poverty and the role of financial inclusion in poverty in these countries. This research analyzes the effects of financial inclusion proxied by a multidimensional index on three poverty measures (the lowest-income poverty line, a lower-middle-income line, and an upper-middle-income line) by employing the recent Turkish Household Budget and Consumption Expenditure Survey data with 11,595 complete answers. In addition to the application of logistic regressions, this study addresses possible endogeneity issues by using access to the nearest bank as an instrument in a two-stage least-squares regression and employing the novel method as a robustness check. Empirical results point out that an increase in financial inclusion decreases poverty in Turkey. The adverse effect of financial inclusion on poverty is validated through a few robustness and sensitivity analyses. The outcome also indicates that health expenditure and income are essential through which poverty is influenced by financial inclusion. Thus, policies are required to enhance the financial inclusion of households to alleviate poverty. Further discussions are presented in this study.
Journal: Applied Economics
Pages: 2135-2147
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985076
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985076
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Template-Type: ReDIF-Article 1.0
Author-Name: Yiling Chen
Author-X-Name-First: Yiling
Author-X-Name-Last: Chen
Author-Name: Guanju Chen
Author-X-Name-First: Guanju
Author-X-Name-Last: Chen
Title: Effectiveness of industrial policy in supporting innovation: the role of internal and external corporate governance mechanism
Abstract:
Focusing on supporting the new and high-tech industries, China’s high- and new-technology enterprise (HNTE) programme aims to stimulate the innovation and creativity of enterprises. Centering on China’s HNTE programme, this paper investigates the impact of industrial support policy on firm innovation, and further examines the boundary conditions of policy effectiveness from the perspective of corporate governance. The results show that industrial support policy can significantly promote firm innovation. Moreover, we find that internal governance (executive equity incentive) and external governance (product market competition) have a significant moderating effect on innovation support of industrial policy, and the role of executive equity incentive depends on the level of product market competition. And product market competition and executive equity incentive are complementary in influencing policy effectiveness only at low competition level. The tests of the boundary conditions of policy incentive effectiveness and the complementary relationship between internal and external governance hold interesting implication for research on innovation policy and corporate governance.
Journal: Applied Economics
Pages: 2181-2193
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985074
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Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2181-2193
Template-Type: ReDIF-Article 1.0
Author-Name: Liang Chen
Author-X-Name-First: Liang
Author-X-Name-Last: Chen
Author-Name: Wanli Li
Author-X-Name-First: Wanli
Author-X-Name-Last: Li
Author-Name: Kaibin Yuan
Author-X-Name-First: Kaibin
Author-X-Name-Last: Yuan
Author-Name: Xiaoqian Zhang
Author-X-Name-First: Xiaoqian
Author-X-Name-Last: Zhang
Title: Can informal environmental regulation promote industrial structure upgrading? Evidence from China
Abstract:
Using Chinese provincial data from 2000 to 2016, this paper investigates the effect of informal environmental regulation (IER) on industrial structure upgrading. We find that IER in the form of environmental media coverage acts as an external binding force and spurs the upgrading of industrial structure through increasing the dual pressure of local government supervision and public opinion. A mechanism test shows that IER can boost regional innovation, thereby promoting the upgrading of industrial structure. Moreover, the positive association between IER and industrial structure upgrading is more prominent in regions with stronger environmental law enforcement and higher public environmental awareness. We also document that IER has a significant informational spatial-diffusion effect and has characteristics of a double-threshold effect. Overall, our results highlight that it is necessary to establish a system for disclosing environmental information and to improve the mechanism whereby independent third parties such as the media participate in environmental governance.
Journal: Applied Economics
Pages: 2161-2180
Issue: 19
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1985073
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1985073
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Handle: RePEc:taf:applec:v:54:y:2022:i:19:p:2161-2180
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyong Dai
Author-X-Name-First: Xiaoyong
Author-X-Name-Last: Dai
Author-Name: Gary Chapman
Author-X-Name-First: Gary
Author-X-Name-Last: Chapman
Author-Name: Hao Shen
Author-X-Name-First: Hao
Author-X-Name-Last: Shen
Title: Late-stage venture capital and firm performance: evidence from small and medium-sized enterprises in China
Abstract:
Where venture capitalists have traditionally focused on early-stage innovative firms, increasingly venture capitalists are investing in late-stage firms, especially in Asia. The performance consequences of this novel phenomenon of late-stage venture capital remain unexplored. This paper provides novel insight into this phenomenon by examining the impact of late-stage venture capital on two key dimensions of firm performance in the venture capital literature: innovation and financial performance. We link VC investment events to financial indicators of Chinese listed firms to account for the timing of VC entry and identify the firm performance impacts. Utilizing a matching and difference-in-differences procedure to account for selection biases, our results show that late-stage venture capital improves investee firms’ financial performance but reduces their innovation performance. Our findings advance understanding about the emergence of late-stage venture capital and its performance consequences, especially in emerging economies. Our work has implications for entrepreneurs and policymakers.
Journal: Applied Economics
Pages: 2356-2372
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1989370
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1989370
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Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2356-2372
Template-Type: ReDIF-Article 1.0
Author-Name: Jose Arreola Hernandez
Author-X-Name-First: Jose Arreola
Author-X-Name-Last: Hernandez
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Spillovers and portfolio optimization of precious metals and global/regional equity markets
Abstract:
We examine the spillovers and resource allocation characteristics of a portfolio of precious metal commodities and global/regional equity markets using a directional spillover index and portfolio optimization methods. Spillover index results show that the largest spillovers among precious metals occur between gold and silver and between zinc and lead. The largest spillovers of the world, Americas, Europe and Asia Pacific equity indices are on palladium and copper. Copper and zinc most largely spillover on the world and Americas equity indices. Copper and lead most largely spillover on the Europe equity index, while copper and silver most largely spillover on the Asia Pacific equity index. Portfolio optimization results indicate that nickel and lead add the most risk to total portfolio risk, whereas gold, platinum and aluminium add the least risk to the portfolio of commodities. Gold and aluminium are the precious metals most desirable for investment.
Journal: Applied Economics
Pages: 2320-2342
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1988889
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1988889
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Template-Type: ReDIF-Article 1.0
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Saving-investment correlations and the financial globalization of the BRICS countries
Abstract:
This study examines the long-run relationship between domestic saving and investment, and assesses the financial globalization of the BRICS economies. The model estimated in one-regime setting with no structural break and in sample-split setting with single as well as multiple structural breaks provides dominant support for the presence of long-run relationship between domestic saving and investment. The slope parameter of saving and implied home-bias in the asset portfolios of investors is generally small to medium for Brazil and large for Russia, India, China, and South Africa (RICS). The small to medium slope coefficient of saving for Brazil suggests the presence of moderate to high international mobility of capital. Financial markets are characterized by financial frictions and there is imperfect integration of RICS with the global financial markets. While the slope coefficient of saving is numerically large for RICS and small to medium for Brazil, it is not strictly identical across estimators. This finding can be generalized to mimic the findings of the extant literature. The academic debates and economic controversies – which surface in almost every area of empirical research – could be ascribed, inter alia, to the use of different methodologies and test statistics across studies.
Journal: Applied Economics
Pages: 2257-2274
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1912280
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1912280
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Template-Type: ReDIF-Article 1.0
Author-Name: Sanjeev Gupta
Author-X-Name-First: Sanjeev
Author-X-Name-Last: Gupta
Author-Name: João Tovar Jalles
Author-X-Name-First: João Tovar
Author-X-Name-Last: Jalles
Title: Can COVID-19 induce governments to implement tax reforms in developing countries?
Abstract:
We estimate that the short- to medium-term fiscal impact of previous pandemics has been significant in 170 countries (including low-income countries) during the 2000–2018 period. The impact has varied, with pandemics affecting government expenditures more than revenues in advanced economies, while the converse applies to developing countries. Using a subset of 45 developing countries for which tax reform data are available, we find that past pandemics have propelled countries to implement tax reforms, particularly in corporate income taxes, excises and trade taxes. Pandemics do not drive revenue administration reforms.
Journal: Applied Economics
Pages: 2288-2301
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1987380
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1987380
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Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2288-2301
Template-Type: ReDIF-Article 1.0
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Title: International portfolio diversification possibilities: can BRICS become a destination for US investors?
Abstract:
This paper investigates the portfolio diversification possibilities between BRICS and the US stock market. Using bootstrap full-sample Granger causality and bootstrap rolling-window sub-sample Granger causality tests, we did not find evidence supporting the causal linkage between BRICS and the US stock markets; time-varying causality was observed for particular sub-samples. Our findings imply that BRICS stock markets can provide diversification possibilities for US investors most of the time; however, such opportunities become extremely limited during crisis periods. We also find that stock markets are more likely to be causally linked if they have similar business conditions, excess returns and size premiums.
Journal: Applied Economics
Pages: 2302-2319
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1988045
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1988045
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Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2302-2319
Template-Type: ReDIF-Article 1.0
Author-Name: Gang Dong
Author-X-Name-First: Gang
Author-X-Name-Last: Dong
Author-Name: Jin Li
Author-X-Name-First: Jin
Author-X-Name-Last: Li
Author-Name: Paul Tae-Woo Lee
Author-X-Name-First: Paul Tae-Woo
Author-X-Name-Last: Lee
Title: Vertical collusion in the shipping container transport chain over the deregulation tariff of port authority
Abstract:
This article investigates the impact of cost difference on vertical collusion between a container port and a liner from the perspective of a shipping container transport chain, taking the deregulation tariff of port authority into consideration. It develops a two-stage game model and then performs simultaneous and sequential games. A finding in this article is that the higher the cost difference between the two shipping container transport chains, the greater the possibility of vertical collusion between the container port and liner. Furthermore, the article found that in the case of an infinite repeated game, the stability of vertical collusion is not only subject to the cost difference but also affected by the terminal handling charge (THC) and collusive choice of counterpart.
Journal: Applied Economics
Pages: 2275-2287
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1987379
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1987379
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Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2275-2287
Template-Type: ReDIF-Article 1.0
Author-Name: Fousseini Traoré
Author-X-Name-First: Fousseini
Author-X-Name-Last: Traoré
Author-Name: Suwadu Sakho Jimbira
Author-X-Name-First: Suwadu Sakho
Author-X-Name-Last: Jimbira
Author-Name: Leysa Maty Sall
Author-X-Name-First: Leysa Maty
Author-X-Name-Last: Sall
Title: Nonlinear price transmission in the rice market in Senegal: a model-based recursive partitioning approach
Abstract:
This paper analyzes the nonlinear effects in price transmission from international markets to the local rice market of Dakar (Senegal) focusing on asymmetries through threshold effects. We use recent machine learning methods (model-based recursive partitioning trees) to detect asymmetries in the price transmission mechanism. Using a model based recursive partitioning algorithm, we identify a threshold and confirm the asymmetry in the price transmission. Local retail prices are more sensitive to world price increases than to declines. Only 11.80% of positive deviations (international prices go down) are eliminated at the end of the subsequent month, while 39.50% of negative deviations (world prices go up) are eliminated after one month. These results highlight the role of transaction costs and the market power of commercial intermediaries in price transmission in the sense that margins are corrected more rapidly when they are squeezed relative to their long run level than when they are stretched. Our results are confirmed by the traditional Threshold Autoregressive (TAR) model.
Journal: Applied Economics
Pages: 2343-2355
Issue: 20
Volume: 54
Year: 2022
Month: 04
X-DOI: 10.1080/00036846.2021.1989369
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1989369
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Handle: RePEc:taf:applec:v:54:y:2022:i:20:p:2343-2355
Template-Type: ReDIF-Article 1.0
Author-Name: Chen Qihui
Author-X-Name-First: Chen
Author-X-Name-Last: Qihui
Title: Impacts of delayed school entry on child learning in rural northwestern China — forced delay versus voluntary delay
Abstract:
Most previous studies exploit the discontinuity in children’s school entry age around the enrolment cut-off to identify the effect of delayed school entry on child learning. However, the effect so identified is only relevant to children who were ‘forced’ to enter school late because of being born slightly after the enrolment cut-off. In developing countries, many children voluntarily start school late regardless of their birthdates, for whom the commonly-used discontinuity-based strategy fails to identify the effect relevant to their delayed enrolment. This study exploits community peer effects to estimate the impact of voluntary delay in school entry, using older peers’ school entry age to instrument one’s own school entry age. Analysing data on nearly 4,000 children from rural northwestern China, we found that while both types of delay in school entry raise the incidence of first-grade repetition, the effect of voluntary delay is much larger than that of forced delay. More specifically, one year of voluntary delay increases a child’s likelihood of first-grade retention by 12.4 percentage points, which is more than twice the effect of forced delay.
Journal: Applied Economics
Pages: 2453-2472
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990845
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990845
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Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2453-2472
Template-Type: ReDIF-Article 1.0
Author-Name: Shaen Corbet
Author-X-Name-First: Shaen
Author-X-Name-Last: Corbet
Author-Name: Yang (Greg) Hou
Author-X-Name-First: Yang (Greg)
Author-X-Name-Last: Hou
Author-Name: Yang Hu
Author-X-Name-First: Yang
Author-X-Name-Last: Hu
Author-Name: Les Oxley
Author-X-Name-First: Les
Author-X-Name-Last: Oxley
Title: Financial contagion among COVID-19 concept-related stocks in China
Abstract:
This paper investigates, for the first time, the presence of financial contagion among several important Chinese coronavirus concept-based stock indices during the recent COVID-19 global pandemic. We utilize a regime-switching skew-normal (RSSN) methodology to test for contagion through the correlation and coskewness channels while considering structural breaks in the different moments. Our results present evidence of contagion effects, which are robust across identified crisis and non-crisis periods, including that of the Wuhan lockdown. Our empirical results offer investors and policy-makers an additional layer of information when evaluating response mechanisms to major crises through the use of concept-based indices.
Journal: Applied Economics
Pages: 2439-2452
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990844
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990844
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Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2439-2452
Template-Type: ReDIF-Article 1.0
Author-Name: Aslı Togan Eğrican
Author-X-Name-First: Aslı
Author-X-Name-Last: Togan Eğrican
Title: Shareholder coordination, investment horizon and hedge fund activism
Abstract:
I examine the role of institutional investors in hedge fund activists’ target selection. I argue that the coordination power and the investment horizon of institutional investors are important factors in explaining target selection. I find that hedge fund activism is higher in firms that institutional investors with long-term horizons invest as well as firms where coordination ability among existing shareholders is less pre-intervention. However, coordination ability increases after the intervention. Furthermore, hedge fund demands and success rates differ with the coordination ability and investment horizon of investors. Firms with investors that have long-term investment horizons and increased coordination ability are more likely to receive demands on board representation, value maximization and corporate governance improvements. Firm performance improvements are the most visible where institutional investors have a long horizon and where coordination among existing institutional investors increases. Overall, the results suggest that coordination ability and investment horizon of existing institutional shareholders are important factors in explaining target selection and strategies explored by hedge fund activists as well as their effects on firm value. The findings support the notion of coordination and collaborative monitoring role of long-term institutional investors with and hedge fund activists.
Journal: Applied Economics
Pages: 2390-2415
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990205
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Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2390-2415
Template-Type: ReDIF-Article 1.0
Author-Name: David Coady
Author-X-Name-First: David
Author-X-Name-Last: Coady
Author-Name: Devin D’Angelo
Author-X-Name-First: Devin
Author-X-Name-Last: D’Angelo
Author-Name: Brooks Evans
Author-X-Name-First: Brooks
Author-X-Name-Last: Evans
Title: Fiscal redistribution, social welfare and income inequality: ‘doing more’ or ‘more to do’?
Abstract:
This paper embeds the analysis of fiscal redistribution (FR) within the standard social welfare framework (SWF), which lends itself to a transparent and practical evaluation of the determinants of FR. Differences in FR are decomposed into differences in fiscal effort (the magnitude of redistributive transfers) and in fiscal progressivity (the distribution of net transfers across different income groups). Progressivity is further decomposed into targeting performance (the share of net transfers accruing to lower-income groups) and targeting returns (the social returns to targeting due to differences in the initial income inequality). This highlights the possibility that countries with the exact same redistributive effort (fiscal effort and targeting performance) can have very different levels of FR simply because they have very different levels of initial income inequality. High levels of FR in a country may therefore reflect that it has ‘more to do’ (high initial inequality) as opposed to it ‘doing more’. To illustrate, the paper decomposes differences in FR across 28 EU countries to isolate the importance of initial income inequality in explaining these differences. It also shows how the SWF can be straightforwardly used to test for the existence of the Paradox of Redistribution.
Journal: Applied Economics
Pages: 2416-2429
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990840
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990840
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Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2416-2429
Template-Type: ReDIF-Article 1.0
Author-Name: Xin Han
Author-X-Name-First: Xin
Author-X-Name-Last: Han
Author-Name: Yutao Han
Author-X-Name-First: Yutao
Author-X-Name-Last: Han
Author-Name: Xi Wan
Author-X-Name-First: Xi
Author-X-Name-Last: Wan
Title: Does revenue sharing reduce regional disparity?
Abstract:
This article investigates the role of tax revenue sharing on regional development disparity. We show that competition in taxes and infrastructure widens the development gap among jurisdictions under both simultaneous and sequential games. Particularly, the results suggest that the development disparity increases with the degree of tax sharing under sequential game. The reason is that the fiscal transfers received by the lagging jurisdiction overcompensate for the loss of capital outflow and thus discourage the lagging from investing in public infrastructure. However, revenue sharing has no effect on the development disparity when simultaneous game is considered.
Journal: Applied Economics
Pages: 2430-2438
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990843
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990843
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Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2430-2438
Template-Type: ReDIF-Article 1.0
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Author-Name: Rim Boussaada
Author-X-Name-First: Rim
Author-X-Name-Last: Boussaada
Author-Name: Majdi Karmani
Author-X-Name-First: Majdi
Author-X-Name-Last: Karmani
Title: Are financial inclusion and bank stability friends or enemies? Evidence from MENA banks
Abstract:
This study investigated the effect of financial inclusion on bank stability in the Middle East and North Africa (MENA) region. To achieve this goal, we used a sample of MENA banks for the 2004–2017 period, and we performed system-generalized method of moments (SGMM) as an empirical approach. Overall, the empirical findings indicate that greater financial inclusion significantly increases bank stability. As bank specifics, we found that bank stability is more sensitive to an increase in the non-performing loans (NPLs) ratio and bank size. However, a sufficient level of liquidity significantly increases bank stability. Finally, the results show that bank stability could benefit from a stable macroeconomic environment.
Journal: Applied Economics
Pages: 2473-2489
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1992342
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1992342
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Handle: RePEc:taf:applec:v:54:y:2022:i:21:p:2473-2489
Template-Type: ReDIF-Article 1.0
Author-Name: Karl-Friedrich Israel
Author-X-Name-First: Karl-Friedrich
Author-X-Name-Last: Israel
Author-Name: Tim Florian Sepp
Author-X-Name-First: Tim Florian
Author-X-Name-Last: Sepp
Author-Name: Nils Sonnenberg
Author-X-Name-First: Nils
Author-X-Name-Last: Sonnenberg
Title: Japanese monetary policy and household saving
Abstract:
This article analyzes the impact of monetary policy on household saving in Japan between 1993 and 2017. Using annual data from the Japan Panel Survey of Consumers it is shown that monetary expansion has contributed to a widening gap in households’ net saving through an adverse effect on the volume of saving of non-academic households. In contrast, households with at least one academic tend to be able to compensate these adverse effects of monetary expansion or can even benefit from it. The article documents how inequality in terms of the ability to build up wealth has increased in Japan over the past decades. The statistical analysis controls for household size as well as potential spatial effects in the transmission mechanism of monetary policy on household saving.
Journal: Applied Economics
Pages: 2373-2389
Issue: 21
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1988890
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1988890
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Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Richard Adjei Dwumfour
Author-X-Name-First: Richard Adjei
Author-X-Name-Last: Dwumfour
Author-Name: Salma Mefteh-Wali
Author-X-Name-First: Salma
Author-X-Name-Last: Mefteh-Wali
Title: Connectedness and directional spillovers in energy sectors: international evidence
Abstract:
This paper provides a comparative analysis of how the energy-sector stocks of 20 regional blocs (Americas, Australasia, BRIC, Southeast Asia, Scandinavia, Southern Europe, Far East, Europe, European Union, Emerging Europe, Asia, G7, G12, Economic and Monetary Union (EMU), CCARBNS, Latin America, North America, PIIGS, Asia-Pacific and NORCS) are connected from 5 July 1994 to 21 April 2020. It uses various techniques: Diebold and Yilmaz (2014)(DY 2014, hereafter) spillover indices and TVP-VAR, LASSO-VAR. Our main results are as follows: First, the DY approach results show that the biggest net contributor of volatility is the CCARBNS region, followed by the G12 and G7 regions, while the biggest receiver of volatility is the Southeast Asia region. Second, the TVP-VAR and LASSO-VAR results reveal that Scandinavia, Far East, and America’s regions are net receivers of energy shocks, with net transmitters being CCARBNS, G7, G12 and Emerging European regions. Third, during the 2007–2008 financial crisis and recent COVID-19 outbreak, energy stock market spillovers have reached unprecedented high levels. Fourth, the world policy uncertainty greatly influenced the magnitude of volatility spillovers across regional energy stock markets.
Journal: Applied Economics
Pages: 2554-2569
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998326
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998326
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Template-Type: ReDIF-Article 1.0
Author-Name: Elyas Elyasiani
Author-X-Name-First: Elyas
Author-X-Name-Last: Elyasiani
Author-Name: Silvia Muzzioli
Author-X-Name-First: Silvia
Author-X-Name-Last: Muzzioli
Title: The power of deterministic option-implied trees in pricing European options
Abstract:
The aims of the current article are threefold. First, to investigate the power of deterministic option-implied trees, constructed either by forward or by backward induction, in pricing European options, in order to assess the proper representation of the smile. Second, to investigate and contrast the power of deterministic option-implied trees during tranquil and volatile market conditions. Last, to assess the correctness of the representation of the smile in different parts of the risk-neutral distribution. Three main results are obtained. First, the pricing performance of the Enhanced Derman and Kani model (EDK), based on forward induction, is superior to that of the Rubinstein model, based on backward induction. Second, the EDK model produces better results (smaller errors) on the left tail of the distribution, i.e. it is better in pricing out-of-the-money put options. Third, it performs better in turmoil periods where correct pricing a challenge, and accuracy is of greater importance than in tranquil periods. Diebold and Mariano test of equal predictive accuracy confirms the superiority of the EDK model in both sub-periods.
Journal: Applied Economics
Pages: 2596-2609
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998330
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998330
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Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2596-2609
Template-Type: ReDIF-Article 1.0
Author-Name: Jianchun Fang
Author-X-Name-First: Jianchun
Author-X-Name-Last: Fang
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Author-Name: Chi Keung Marco Lau
Author-X-Name-First: Chi Keung Marco
Author-X-Name-Last: Lau
Author-Name: Neelu Seetaram
Author-X-Name-First: Neelu
Author-X-Name-Last: Seetaram
Title: Does policy uncertainty affect economic globalization? An empirical investigation
Abstract:
This paper investigates the role of policy uncertainty on indices of economic globalization from 1996 to 2016 in the panel dataset of 142 countries. For this purpose, we use the nine measures of the Revisited KOF Economic Globalization Indices and two new measures of uncertainty: The World Uncertainty Index (WUI) and the Trade Policy Uncertainty Index (TPUI). The findings indicate that both the WUI and the TPUI are negatively associated with the overall index of economic globalization. The benchmark results remain consistent under various model specifications, econometric estimation techniques, and countries at different income levels.
Journal: Applied Economics
Pages: 2510-2528
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998324
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998324
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Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2510-2528
Template-Type: ReDIF-Article 1.0
Author-Name: Qin Zhou
Author-X-Name-First: Qin
Author-X-Name-Last: Zhou
Author-Name: Qing He
Author-X-Name-First: Qing
Author-X-Name-Last: He
Author-Name: Karen Eggleston
Author-X-Name-First: Karen
Author-X-Name-Last: Eggleston
Author-Name: Gordon G Liu
Author-X-Name-First: Gordon G
Author-X-Name-Last: Liu
Title: Urban-rural health insurance integration in china: impact on health care utilization, financial risk protection, and health status
Abstract:
China has been making efforts to establish a universal health care coverage system through multiple social health insurance schemes. As these insurance schemes cover different populations with different financing and reimbursement levels, large disparities remain in health care access and health outcomes among people covered. The government has launched an urban-rural integration policy for social health insurance to reduce disparities in access and health outcomes. We adopt a difference-in-differences propensity score matching approach to estimate the effects of this integration policy on health care utilization, financial risk protection, and health status, using nationally representative Chinese household survey data. The results show that the integration policy has significantly improved financial risk protection and self-assessed health of rural residents in China, which could be attributed to a decline in out-of-pocket payment. The low-income rural residents benefit most from this policy. There is no evidence that it has pronounced effects among urban residents. Greater efforts to increase reimbursement rates and to expand beneficiary populations could help to mitigate remaining urban-rural disparities. The findings in this study would contribute to a better understanding of the impacts of health insurance expansion in low- and middle-income countries. JEL code: I18, I10
Journal: Applied Economics
Pages: 2491-2509
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998323
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998323
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Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2491-2509
Template-Type: ReDIF-Article 1.0
Author-Name: Haileslasie Tadele
Author-X-Name-First: Haileslasie
Author-X-Name-Last: Tadele
Author-Name: Xinfeng Ruan
Author-X-Name-First: Xinfeng
Author-X-Name-Last: Ruan
Author-Name: Weihan Li
Author-X-Name-First: Weihan
Author-X-Name-Last: Li
Title: Corporate governance and firm-level jump and volatility risks
Abstract:
Corporate governance plays a significant role in monitoring managerial behaviour, and thus in reducing firm-level risks and increasing firm value. Using a global unbalanced panel of 6,241 firm-year observations over the period of 1996–2016, we investigate the impact of internal and external governance attributes on firm risk. We address the endogeneity problem inherent in governance studies using option-based risk measures for jump and volatility risks. We use a multiple theoretical perspective to explain the relationship between governance mechanisms and firm risk. Our results indicate that board structure and entrenchment factors have a differential impact on firms’ jump and volatility risks. Our evidence reveals that firms with higher entrenchment provisions tend to increase volatility risk and that a higher proportion of outside directors increases firms’ volatility risk. Board size and CEO salary reduce volatility risk yet increase jump risk. We also find that the proportion of outside directors is negatively associated with firms’ jump risk. Overall, our results reveal interesting evidence and provide implications for future governance studies.
Journal: Applied Economics
Pages: 2529-2553
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998325
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998325
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Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2529-2553
Template-Type: ReDIF-Article 1.0
Author-Name: Michel Verlaine
Author-X-Name-First: Michel
Author-X-Name-Last: Verlaine
Title: On the extraction of cyber risks from structured products
Abstract:
The aim of this paper is to develop an approach to extract information about cyber risks from structured financial products. We consider decision makers that are interested in extracting information about the uncertainty of Cyber risks. The value of information can be evaluated using recently developed entropy approaches in Finance. The underlying idea is that what we call Arrow-Debreu Cyber Risk state prices can be extracted, provided the right structured products be ‘created’. It is shown that different market-based approaches can be used to get a better idea of the shape of the loss distribution facing firms. This information is potentially of interest to evaluate the risk premiums of insurance products. Comparisons between extracted market expectations can also be informative for risk evaluation, notably the distribution of unexpected losses and the eventual shortfall calculations. Finally, recent information-theoretic approaches enable us to make the link between pricing and the value of information to investors.
Journal: Applied Economics
Pages: 2570-2581
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998327
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998327
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Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2570-2581
Template-Type: ReDIF-Article 1.0
Author-Name: Mariana Hatmanu
Author-X-Name-First: Mariana
Author-X-Name-Last: Hatmanu
Author-Name: Cristina Cautisanu
Author-X-Name-First: Cristina
Author-X-Name-Last: Cautisanu
Author-Name: Andreea Oana Iacobuta
Author-X-Name-First: Andreea Oana
Author-X-Name-Last: Iacobuta
Title: On the relationships between CO2 emissions and their determinants in Romania and Bulgaria. An ARDL approach
Abstract:
Given the current context, with phenomena such as dramatic climate change, water, air, soil pollution, etc., the complex relation between environmental degradation and economic growth is intensely debated in the academia as well as in worldwide politics. This study examines the relationship between carbon dioxide emissions, gross domestic product, energy consumption, and urbanization rate in Romania and Bulgaria over 1980–2019 period. For this purpose, we have applied the ARDL bounds testing approach and, to validate the robustness of the results, we have used the VEC Granger model. The results showed that there are long term relationships between CO2 emissions per capita and the determinant factors taken into account in both countries; however, while the inverted N-shape of EKC is significant in the case of Bulgaria, this does not happen in the case of Romania although the model which includes the inverted U-shape of EKC is significant for both countries. Considering the fact that both Romania and Bulgaria are emerging economies which, despite having made significant progress, are still in search of a path towards sustainable development, such a study may constitute a good starting point and may suggest some action directions in terms of sustainable development policies.
Journal: Applied Economics
Pages: 2582-2595
Issue: 22
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998328
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998328
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Handle: RePEc:taf:applec:v:54:y:2022:i:22:p:2582-2595
Template-Type: ReDIF-Article 1.0
Author-Name: Miramir Bagirov
Author-X-Name-First: Miramir
Author-X-Name-Last: Bagirov
Author-Name: Cesario Mateus
Author-X-Name-First: Cesario
Author-X-Name-Last: Mateus
Title: Petroleum prices and equity sector returns in petroleum exporting and importing countries: an analysis of volatility transmissions and hedging
Abstract:
This paper examines the direction and magnitude of volatility transmissions between prices of petroleum and stock sector indices of the net petroleum exporter, Mexico, and the net petroleum importer, the United Kingdom. The sector indices are self-constructed utilizing daily data of 258 unique stocks listed in eight sectors from January 2005 to September 2018 that permits implementing the same methodological framework across two markets. The study applies the VAR-GARCH model that enables to study bidirectional spillover effects. The results provide evidence of volatility spillovers between petroleum prices and sector indices. The effects are more apparent in the case of the net exporter, where the bidirectional volatility transmissions were observed. The computed optimal portfolio weights and hedge ratios considerably vary among sectors of both countries. The findings emphasize the crucial role of comprehending the heterogeneity of sectors for the management of investment portfolios.
Journal: Applied Economics
Pages: 2610-2626
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1990846
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990846
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Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2610-2626
Template-Type: ReDIF-Article 1.0
Author-Name: Guangshun Qiao
Author-X-Name-First: Guangshun
Author-X-Name-Last: Qiao
Author-Name: Shirong Zhao
Author-X-Name-First: Shirong
Author-X-Name-Last: Zhao
Title: Tradeoffs between economies of scale and specialization in efficiency for the global semiconductor industry
Abstract:
This paper combines the semiparametric modified ordinary least-squares approach by Simar et al. (2017) with the nonparametric shape constraint regression approach by Du et al. (2013) to evaluate the performance in the semiconductor industry. Using panel data on 470 companies in the global semiconductor industry over 1999–2018, we compare technical eficiencies between the integrated device manufacturer business model and the fabless-foundry business model. The performance differences between the vertically integrated device manufacturers and the vertically specialized fabless and foundry firms are disentangled by the intensity of labour and capital in a very flexible form. The estimation results indicate that the capital-intensive integrated device manufacturers taking advantage of the economies of scale are operating more efficiently than the niche fabless companies in the global semiconductor industry.
Journal: Applied Economics
Pages: 2678-2693
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1994126
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994126
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Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2678-2693
Template-Type: ReDIF-Article 1.0
Author-Name: Zhixin Zeng
Author-X-Name-First: Zhixin
Author-X-Name-Last: Zeng
Author-Name: Long Zhao
Author-X-Name-First: Long
Author-X-Name-Last: Zhao
Author-Name: Xiaojun Wang
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Wang
Title: Does improved transportation promote innovation? evidence from China’s cities
Abstract:
This paper empirically investigates the effect of improved transportation system on innovation activities in a panel of Chinese cities. We find robust evidence that there is a significant increase in a city’s capacity in invention patents due to the opening of the high-speed railway (HSR). Furthermore, increased expenditure in research and development (R&D), expanded business opportunities through trade and foreign direct investment, and intensified import competition are three plausible channels that allow the opening of HSR to spur city innovation.
Journal: Applied Economics
Pages: 2643-2657
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1992344
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1992344
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Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2643-2657
Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Ching Tseng
Author-X-Name-First: Yung-Ching
Author-X-Name-Last: Tseng
Author-Name: I-Fan Hsiao
Author-X-Name-First: I-Fan
Author-X-Name-Last: Hsiao
Title: Decomposing the factors influencing household debt: the case of China
Abstract:
This study discusses the issue of household debt in China based on the data of China household finance survey completed in 2015. The quantile regression model is adopted as the key research method, and the conclusions are derived are as follows. The increase in household debt in China is significantly correlated with several financial factors, including household assets and income, as well as the socioeconomic factors of education, age and working unit, in addition to senses of security and happiness. The assets of highly indebted households influence their debt in a positive way; the influence of income on household debt decreases as the quantile increases; the householder age has a negative effect across all household quantiles, and the debt holdings are less at older ages. The influence of household educational background dramatically increases from negative to positive following the indebtedness level, suggesting that enormous debt burdens may be generated from the cross effect of disadvantages in income and educational background. By decomposing the results of the quantile regression estimations, the evidence suggests that sufficient financial knowledge is essential in avoiding the financial distress from household debt.
Journal: Applied Economics
Pages: 2627-2642
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1992343
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1992343
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Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2627-2642
Template-Type: ReDIF-Article 1.0
Author-Name: Maroula Khraiche
Author-X-Name-First: Maroula
Author-X-Name-Last: Khraiche
Author-Name: Levent Kutlu
Author-X-Name-First: Levent
Author-X-Name-Last: Kutlu
Author-Name: Xi Mao
Author-X-Name-First: Xi
Author-X-Name-Last: Mao
Title: Energy efficiencies of European countries
Abstract:
Improving energy efficiency is essential for sustainable development; therefore, an accurate assessment of energy efficiency is needed to inform policymakers on how to set energy efficiency goals. Using a stochastic frontier model, we estimate energy efficiencies of 44 countries in Europe from 1990 to 2015. Comparing average energy efficiencies across countries among three time periods, 1990 to 1998, 1999 to 2007, and 2008 to 2015, we find the following trends: (1) countries with highest energy efficiency cluster geographically suggesting spillover effects; (2) from the first period to the second period, 67.44% of European countries’ average energy efficiency increased, while only 59.09% of European countries’ average energy efficiencies increased between the first and the third period; (3) gains in energy efficiency may be levelling off or decreasing over time; and (4) when countries face economic downturn, they experience a decrease in energy efficiency signalling possible future decreases in energy efficiency in light of the recent recessions caused by the Covid-19 pandemic. Finally, we compute potential energy savings from a counterfactual experiment in which countries realize full efficiency. The results show substantial energy savings can be obtained by Russia in particular, and less savings can be obtained by countries with smaller populations.
Journal: Applied Economics
Pages: 2694-2706
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1994520
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994520
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Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2694-2706
Template-Type: ReDIF-Article 1.0
Author-Name: Sadick Mohammed
Author-X-Name-First: Sadick
Author-X-Name-Last: Mohammed
Author-Name: Awudu Abdulai
Author-X-Name-First: Awudu
Author-X-Name-Last: Abdulai
Title: Do ICT based extension services improve technology adoption and welfare? Empirical evidence from Ghana
Abstract:
This paper examines the impact of ICT-based extension services on farmers’ adoption of a new agricultural technology (Bradyrhizobium inoculant), knowledge gain on the new technology, yields and net returns, using recent survey data of 600 soybean farmers from Ghana. We employ a copula functions approach to account for potential selection bias and endogeneity. Standard selectivity correction models often employed in the literature rely on multivariate normality (MVN) assumption, which is easily violated, especially when there is tail dependence in the distribution of the observed data, thus making the distribution non-normal. The copula functions approach allows the modelling of selectivity based on multivariate non-normality to account for this deficit in the data, but retains the MVN as a special case. Our empirical findings reveal that farmers who participated in ICT-based extension obtained 205% knowledge scores, 151% yields and 88% farm net returns, compared to 174% knowledge scores, 148% yields and 86% farm net returns for conventional extension participants. The current study provides evidence that employing ICT-based extension delivery to farmers can help in accelerating progress towards the achievement of the Sustainable Development Goals, particularly goals two and five, which seek to achieve zero hunger and equalaccess to extension services.
Journal: Applied Economics
Pages: 2707-2726
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998334
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998334
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Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2707-2726
Template-Type: ReDIF-Article 1.0
Author-Name: Thi Thu Ha Nguyen
Author-X-Name-First: Thi Thu Ha
Author-X-Name-Last: Nguyen
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Iqbal Syed
Author-X-Name-First: Iqbal
Author-X-Name-Last: Syed
Title: Direct real estate, securitized real estate, and equity market dynamic connectedness
Abstract:
The paper’s objective is to scrutinize the dynamics of connectedness across returns of three markets, including direct real estate, securitized real estate, and stock markets. Through the connectedness index approach, the results indicate a significant degree of connectedness, which increases sharply during the recent global financial crisis. The net directional connectedness is volatile and time-dependent, yet the dominant shock transmitting role of the securitized real estate is pronounced during the GFC. While the direct real estate market plays as a dominant shock information receiver from the markets of securitized real estate and stocks in Australia, Canada, France, and the UK, it appears to shape other markets in the context of the US. Given the fact that the securitized real state is considered as the hybrid of the conventional real estate market and the stock market, we further note that the securitized real estate is more linked with its underlying market. Several implications for investors and policymakers are discussed.
Journal: Applied Economics
Pages: 2658-2677
Issue: 23
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1994125
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994125
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Handle: RePEc:taf:applec:v:54:y:2022:i:23:p:2658-2677
Template-Type: ReDIF-Article 1.0
Author-Name: Ki-Hong Choi
Author-X-Name-First: Ki-Hong
Author-X-Name-Last: Choi
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Herding behaviour in Korea’s cryptocurrency market
Abstract:
Herding behaviour is an interesting phenomenon that has a serious impact on the market, leading to inefficient asset prices and high volatility in periods of market turmoil. We analysed the existence of herding behaviour in the cryptocurrency market using hourly price data of eight major cryptocurrencies and the cross-sectional standard absolute deviation (CSAD) approach. Our findings showed anti-herding behaviour at shorter time intervals and herding behaviour during longer periods. The trading decisions of cryptocurrency investors mimic the behaviour of other traders over time. We further found that herding behaviour is stronger over longer time intervals in a down market. When a market is declining, it suggests that fear increases and investors are forced to act quickly in response to market movements rather than using their information. Thus, investors need to fix the situation as quickly as possible to avoid making losses, hence they need to make rational choices based on knowledge rather than emotion or fear.
Journal: Applied Economics
Pages: 2795-2809
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998335
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998335
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Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2795-2809
Template-Type: ReDIF-Article 1.0
Author-Name: Yıldız Özkök
Author-X-Name-First: Yıldız
Author-X-Name-Last: Özkök
Author-Name: İbrahim Çütcü
Author-X-Name-First: İbrahim
Author-X-Name-Last: Çütcü
Title: Does fiscal federalism matter for economic growth? Evidence from the United States
Abstract:
Fiscal federalism can improve macroeconomic performance by increasing the efficiency and performance of the public sector. The aim of this study is to analyse the long-term relationship between fiscal federalism and economic growth during the period of 1961–2018 in the United States. In this analysis, first of all, the Hatemi-J Co-integration test was used to determine the long-term relationship between the variables, and accordingly it was determined that there is a long-term relationship between the variables at the 1% significance level. Then, the causality relationship between variables was tested using Hacker–Hatemi-J bootstrap causality analysis and no causality relationship was found among the variables. Finally, a time-varying causality test was applied, since the causality relationship between variables may lose its validity at some time points, especially in global economies. It was found that there is a causality relationship between variables when sub-periods are considered.
Journal: Applied Economics
Pages: 2810-2824
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998337
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998337
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Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2810-2824
Template-Type: ReDIF-Article 1.0
Author-Name: Insook Lee
Author-X-Name-First: Insook
Author-X-Name-Last: Lee
Title: Conditional effect of government debt on household debt
Abstract:
How does government debt affect household debt? Capitalizing on a model of life-cycle economy populated by households with no bequest motive, this article shows that effect of government debt on aggregate household debt is conditional. If residence-service benefit of house is greater than equity-accrual benefit of house investment, government debt negatively affects household debt. If not, government debt positively affects household debt. This theoretical finding is tested with panel data of 53 countries over 1991–2019. Using system Generalized Method of Moments finds supportive evidence for the conditional effect, which remains robust after adopting external instrumental variable and alternative approach to expectation formation.
Journal: Applied Economics
Pages: 2759-2777
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998332
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998332
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Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2759-2777
Template-Type: ReDIF-Article 1.0
Author-Name: Saqib Aziz
Author-X-Name-First: Saqib
Author-X-Name-Last: Aziz
Author-Name: Akanksha Jalan
Author-X-Name-First: Akanksha
Author-X-Name-Last: Jalan
Author-Name: Roman Matkovskyy
Author-X-Name-First: Roman
Author-X-Name-Last: Matkovskyy
Author-Name: Taoufik Bouraoui
Author-X-Name-First: Taoufik
Author-X-Name-Last: Bouraoui
Title: Does Shariah compliance affect investor behaviour in the COVID-19 times: evidence from herding in the global energy market
Abstract:
This paper investigates whether the Shariah compliance matters in determining investor behaviour in herding across firms in the global energy market. Our sample comprises 2501 globally listed energy equities from 10 April 2019 to 8 April 2020 from the Refinitv Eikon database, which also flags firms as compliant or otherwise with Shariah or Islamic law. Using closing price data for the selected firms, we analyse herding behaviour across the two groups, in addition to various firm and market characteristics such as size, profitability, analyst recommendations about future performance and up and down market days. Our results suggest herding in both Shariah and non-Shariah-compliant energy firms, and on down market days in particular. Cross-sectional tests indicate higher herding in larger and more-profitable Shariah firms, and those with positive analyst forecasts for the future, which is consistent with pressure-driven behaviour to maintain performance. In particular, we find that the COVID-19 pandemic does not significantly alter herding behaviour for the sample firms.
Journal: Applied Economics
Pages: 2825-2836
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999384
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999384
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Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2825-2836
Template-Type: ReDIF-Article 1.0
Author-Name: Laiqun Jin
Author-X-Name-First: Laiqun
Author-X-Name-Last: Jin
Author-Name: Xiuyan Liu
Author-X-Name-First: Xiuyan
Author-X-Name-Last: Liu
Author-Name: Sam Hak Kan Tang
Author-X-Name-First: Sam Hak Kan
Author-X-Name-Last: Tang
Title: High-technology zones, misallocation of resources among cities and aggregate productivity: evidence from China
Abstract:
Recent literature has been debating the performance of high-technology zones (HTZs) in developing countries. This paper contributes to this debate by examining how national HTZs in China affect allocative efficiency of resources among Chinese cities as well as China’s total factor productivity (TFP) growth. This paper finds that resource misallocation among cities reduces China’s TFP growth by 4.5% of which capital misallocation accounts for 2.4% and labour misallocation accounts for 2.1%. Moreover, we find that the establishment of national HTZs in China increases aggregate TFP by improving the allocative efficiency of capital among cities: that is, redistributing more capital from lower to higher productivity cities. In contrast, we find little evidence of TFP gain driven by technical efficiency following the establishment of HTZs. This paper thus reveals a potential positive effect of establishing HTZs in developing countries: although establishing HTZs may not improve the technical efficiency of these countries, it may nevertheless mitigate these countries’ resource misallocation and enhance their aggregate TFP.
Journal: Applied Economics
Pages: 2778-2794
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1998333
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998333
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Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2778-2794
Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Yi Li
Author-X-Name-First: Yong-Yi
Author-X-Name-Last: Li
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Title: Does CFO serving as board secretary matter for information disclosure? Evidence from China’s listed companies
Abstract:
This paper explores whether duality in the chief financial officer’s (CFO’s) job role (i.e. also serving as board secretary) reduces information asymmetry through higher levels of information transparency, focusing on Chinese publicly listed companies from 2001 to 2018. Our findings reveal that CFOs serving as board secretaries contribute to greater information transparency. The positive effect of CFO duality on information transparency appears to be more pronounced in state-owned enterprises (SOEs) and in firms whose CFO is female and have had a longer tenure. Knowledge of these impacts is critical to building appropriate investment strategies.
Journal: Applied Economics
Pages: 2737-2758
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1996531
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1996531
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Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2737-2758
Template-Type: ReDIF-Article 1.0
Author-Name: Jinyang Cai
Author-X-Name-First: Jinyang
Author-X-Name-Last: Cai
Author-Name: Ruifa Hu
Author-X-Name-First: Ruifa
Author-X-Name-Last: Hu
Author-Name: Yu Hong
Author-X-Name-First: Yu
Author-X-Name-Last: Hong
Title: Impact of farmer field schools on agricultural technology extension—evidence from greenhouse vegetable farms in China
Abstract:
Agricultural extension is a key instrument to bridge the gap between new technologies and farmers. As a popular extension approach, farmer field schools (FFS) usually improve farmers’ knowledge and crop productivity. This study aims to quantify the heterogeneous impact of FFS on the cognition and adoption of multiple new agricultural technologies. In this study, we apply Tobit models to estimate the impact of FFS on technology extension regarding farmers’ cognition and adoption rates of different technologies, using data collected for 274 tomato and cucumber farm households in Beijing, China. We find that the FFS programmesignificantly increased farmers’ cognition and adoption of new agricultural technologies. We also find that the effects of FFS on extension vary in different categories of new technology. Particularly, we find that the extension of facility technologies is difficult, and new varieties are easy to disseminate but difficult to adopt by farmers. We conclude that FFS is an important channel for the extension of new agricultural technologies. At the same time, attention should be paid to the design of the FFS programme, adjusting to the attribute of different technologies.
Journal: Applied Economics
Pages: 2727-2736
Issue: 24
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1996530
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1996530
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Handle: RePEc:taf:applec:v:54:y:2022:i:24:p:2727-2736
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Filippini
Author-X-Name-First: Massimo
Author-X-Name-Last: Filippini
Author-Name: Giuliano Masiero
Author-X-Name-First: Giuliano
Author-X-Name-Last: Masiero
Author-Name: Michael Santarossa
Author-X-Name-First: Michael
Author-X-Name-Last: Santarossa
Title: Productivity change and efficiency in the Swiss nursing home industry
Abstract:
Enhancing nursing home efficiency and productivity is a challenging task for health policy makers due to population ageing trends and increasing healthcare costs. In this study, we analyse nursing home efficiency and productivity using data from the universe of Swiss nursing homes for the period 2007–2015. We estimate a translog cost frontier via generalized true random effects models, which allow to disentangle the transient and the persistent components of inefficiency. In particular, we apply the simulated maximum likelihood approach proposed recently by scholars and then improve our estimates with a Mundlak correction. We find that total factor productivity change has dropped in recent years, and both efficiency components show scope for improvement. However, the marginal gains from transient efficiency measures are potentially larger, and could provide a more valid contribution to reverse the decreasing trend in total factor productivity change.
Journal: Applied Economics
Pages: 2837-2850
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1962511
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1962511
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Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2837-2850
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth Khang
Author-X-Name-First: Kenneth
Author-X-Name-Last: Khang
Author-Name: Thomas W. Miller
Author-X-Name-First: Thomas W.
Author-X-Name-Last: Miller
Title: Mutual fund performance components: an application to asset allocation mutual funds
Abstract:
While most of the mutual fund performance literature focuses on returns only, a recent strand examines the activity level of portfolio managers and how this activity affects portfolio performance. We add to this literature in two ways. First, we examine asset allocation mutual funds, noting there are few studies examining this type of fund. We note our method of examination can be modified for any type of fund. Second, we use a weight-based method that separates fund performance into components, one of which provides a new measure of manager activity. Because this new measure is a component of fund performance, the effect of manager activity on performance is explicit. While we find the average fund does not beat a lagged-weight benchmark, we do find the components explain performance differences among funds. We also find evidence that manager activity persists, meaning funds exhibiting greater activity in the past tend to do so in the future. This is important because it predicts which funds are likely to have more extreme performance in the future. Finally, we find evidence of persistence in predictive skill, but find that skill is not strong enough to produce persistence in fund performance.
Journal: Applied Economics
Pages: 2933-2948
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.2000583
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2000583
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Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2933-2948
Template-Type: ReDIF-Article 1.0
Author-Name: Linlin Sun
Author-X-Name-First: Linlin
Author-X-Name-Last: Sun
Author-Name: Yuefei Yang
Author-X-Name-First: Yuefei
Author-X-Name-Last: Yang
Author-Name: Jue Wang
Author-X-Name-First: Jue
Author-X-Name-Last: Wang
Author-Name: Yunyun Jiang
Author-X-Name-First: Yunyun
Author-X-Name-Last: Jiang
Title: Macroeconomic impacts and transmission channels of an epidemic shock: evidence from the economic performance of China during the 2003 SARS epidemic
Abstract:
This paper uses the 2003 severe acute respiratory syndrome (SARS) epidemic as a quasi-experiment to study the economic impact of epidemic shocks. It aims to answer the following two questions. 1) How does an epidemic affect various macroeconomic variable? 2) What are the transmission channels through which the epidemic shock affected firms? We build an epidemic shock macroeconomic model and use synthetic control method (SCM) and difference-in-differences (DID) estimator to estimate the impact of the 2003 SARS epidemic on the economic performance of China. We find that the SARS epidemic negatively affected China’s GDP growth rates and its levels of consumption, investment, and productivity. The lag time effect of SARS was very short because of the short duration of the outbreak and adequate market liquidity. We isolate and compare the effects of the SARS epidemic from the perspectives of changes in business cycles, labour supply shocks and external financing conditions on firms’ economic performance using firm-specific sensitivity estimates prior to the SARS epidemic. We find that the SARS epidemic had a larger negative impact on firms with higher sensitivity to business cycles and labour supply shocks.
Journal: Applied Economics
Pages: 2851-2873
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999385
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999385
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Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2851-2873
Template-Type: ReDIF-Article 1.0
Author-Name: Felicity Addo
Author-X-Name-First: Felicity
Author-X-Name-Last: Addo
Author-Name: Klaus Salhofer
Author-X-Name-First: Klaus
Author-X-Name-Last: Salhofer
Title: Transient and persistent technical efficiency and its determinants: the case of crop farms in Austria
Abstract:
We analyse persistent and transient technical efficiency of crop farms in Austria from 2003 to 2017 by estimating the four-component stochastic frontier model using a multi-step procedure and extend it to account for heterogeneity bias by introducing the Mundlak adjustments. Moreover, we examine the determinants of both transient and persistent technical inefficiency. Results show that farms with favourable natural conditions, a higher share of family labour, and a lower share of owned land are more persistently efficient. Farm specialization, size, and farmers’ age are positively associated with transient efficiency, while subsidies have adverse impacts. Significant technological progress coupled with, on average decreasing technical efficiency indicates a diverging sector.
Journal: Applied Economics
Pages: 2916-2932
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.2000580
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2000580
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Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2916-2932
Template-Type: ReDIF-Article 1.0
Author-Name: Nélida Díaz Sobrino
Author-X-Name-First: Nélida
Author-X-Name-Last: Díaz Sobrino
Author-Name: Corinna Ghirelli
Author-X-Name-First: Corinna
Author-X-Name-Last: Ghirelli
Author-Name: Samuel Hurtado
Author-X-Name-First: Samuel
Author-X-Name-Last: Hurtado
Author-Name: Javier J. Pérez
Author-X-Name-First: Javier J.
Author-X-Name-Last: Pérez
Author-Name: Alberto Urtasun
Author-X-Name-First: Alberto
Author-X-Name-Last: Urtasun
Title: The narrative about the economy as a shadow forecast: an analysis using Bank of Spain quarterly reports
Abstract:
This paper constructs a text-based indicator that reflects the sentiment of the Bank of Spain economic outlook reports. Our sentiment indicator mimics very closely the first release of the GDP growth rate, which is published after the publication of the reports, and the Bank of Spain’s quarterly forecasts of the GDP growth rate. In addition, not only the narrative is consistent with the quantitative projections, but it also complements them by discussing information which is not directly reflected in the point forecasts, and may put on the table potential risks that will be included in the numerical projections of the next quarter. Thus, while the quantitative projections tend to underestimate the GDP growth rate especially during upturns, the narrative allows to outweigh this conservative bias. Overall, from a Central Bank’s communication perspective, it is the combination of quantitative forecast and narrative that provides a more precise picture of expected economic activity.
Journal: Applied Economics
Pages: 2874-2887
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999386
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999386
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Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2874-2887
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Biolsi
Author-X-Name-First: Christopher
Author-X-Name-Last: Biolsi
Author-Name: Brian Goff
Author-X-Name-First: Brian
Author-X-Name-Last: Goff
Author-Name: Dennis Wilson
Author-X-Name-First: Dennis
Author-X-Name-Last: Wilson
Title: Task-level match effects and worker productivity: evidence from pitchers and catchers
Abstract:
The match between Major League Baseball catchers and pitchers combines characteristics of a for-profit production setting with those of a more intimate, family-type environment. We estimate the importance of these matches at the task level of getting outs and for getting strikeouts using a two-way fixed-effects strategy. We find that match effects matter almost as much as pitcher fixed effects and more than catcher effects for getting an out of any kind. For strikeouts, match effects matter more than catcher effects, if not as much as pitcher effects. We also examine influences on productive matches, showing that match effects are improved when both the pitcher and the catcher are born in the same country, are both born in predominantly Spanish-speaking countries, or as the number of shared experiences increases. All of these fit within a ‘positive assortative’ category of matches. We do not find evidence that relative experience matters for match effects.
Journal: Applied Economics
Pages: 2888-2899
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999898
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999898
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Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2888-2899
Template-Type: ReDIF-Article 1.0
Author-Name: Borja Gambau
Author-X-Name-First: Borja
Author-X-Name-Last: Gambau
Author-Name: Juan C. Palomino
Author-X-Name-First: Juan C.
Author-X-Name-Last: Palomino
Author-Name: Juan G. Rodríguez
Author-X-Name-First: Juan G.
Author-X-Name-Last: Rodríguez
Author-Name: Raquel Sebastian
Author-X-Name-First: Raquel
Author-X-Name-Last: Sebastian
Title: COVID-19 restrictions in the US: wage vulnerability by education, race and gender
Abstract:
We study economic vulnerability to the stay-at-home orders and social distancing measures imposed to prevent COVID-19 contagion in the US by education, race, gender, and state. Under 2 months of lockdown plus 10 months of partial functioning we find that, without compensating policies, wage inequality and poverty would increase in the US for all social groups and states. We estimate a national potential increase in inequality of 4.1 Gini points and of 9.7 percentage points for poverty, with uneven increases by race, gender, and education. The restrictions imposed to curb the pandemic produce a double process of divergence: both inequality within and between social groups increase, with education accounting for the largest part of the rise in inequality between groups. Education level differences also impact wage poverty risk more than differences by race or gender, making the low-educated the most vulnerable group, while workers with higher education of any race and gender are less exposed. When measuring the potential percentile rank change, most women with secondary education or higher move up, while most men without higher education suffer downward mobility. Our findings can inform public policy aiming to address the disparities in vulnerability to pandemic-related shocks across different socioeconomic groups.
Journal: Applied Economics
Pages: 2900-2915
Issue: 25
Volume: 54
Year: 2022
Month: 05
X-DOI: 10.1080/00036846.2021.1999899
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1999899
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Handle: RePEc:taf:applec:v:54:y:2022:i:25:p:2900-2915
Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Withey
Author-X-Name-First: Patrick
Author-X-Name-Last: Withey
Author-Name: Chinmay Sharma
Author-X-Name-First: Chinmay
Author-X-Name-Last: Sharma
Author-Name: Van Lantz
Author-X-Name-First: Van
Author-X-Name-Last: Lantz
Author-Name: Galen McMonagle
Author-X-Name-First: Galen
Author-X-Name-Last: McMonagle
Author-Name: Thomas O. Ochuodho
Author-X-Name-First: Thomas O.
Author-X-Name-Last: Ochuodho
Title: Economy-wide and CO2 impacts of carbon taxes and output-based pricing in New Brunswick, Canada
Abstract:
Economic models suggest that greenhouse gas emission reductions are warranted on a global scale. However, more analysis is needed at a regional level to inform local governments about the economics of alternative carbon policies. To this end, we develop a dynamic computable general equilibrium model for the case-study province of New Brunswick, Canada, and consider economic impacts and costs of two carbon policy scenarios. The first, called the Federal ‘backstop’, consists of a carbon tax on small emitters and an output-based pricing system (OBPS) on large emitters. The second consists of a common carbon tax across all emitters. We also consider different carbon tax revenue recycling options under each scenario. Results show that when a carbon tax is applied to all emitters starting at $20/tonne in 2019 and increasing to $170/tonne in 2030, cumulative present value GDP would decline in the range of 0.60%–0.63% (depending on revenue recycling options), and emissions will decline by more than 32%. Under the Federal backstop scenario, GDP reduction is only 0.24–0.26%, and emissions reduction is only 13%. In all scenarios, the costs range between $21 and 50/tonne on average, and are generally lower than the global social cost of carbon estimated in other research.
Journal: Applied Economics
Pages: 2998-3015
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001422
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001422
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Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:2998-3015
Template-Type: ReDIF-Article 1.0
Author-Name: Sanjiv Jaggia
Author-X-Name-First: Sanjiv
Author-X-Name-Last: Jaggia
Author-Name: Satish Thosar
Author-X-Name-First: Satish
Author-X-Name-Last: Thosar
Title: Education and risk-taking incentives: an analysis of CEO compensation contracts
Abstract:
We explore whether CEO educational background attributes and other demographic variables such as gender and age play a role in influencing the incentive features―pay-for-performance (delta) and pay-for-risk (vega)―embedded in their compensation contracts. We interpret these incentive features as robust proxies for idiosyncratic risk tolerance, which is an important element in diverse streams of research including but not limited to the upper echelons theory and the concomitant investigations into the drivers of strategic management choices and organizational outcomes. Using a unique and hand collected dataset, we uncover a number of interesting relationships. For instance, we find that CEOs graduating from elite schools and those with undergraduate majors in subjects like business/economics or the humanities display higher exposure to incentive pay compared to more specialized fields like engineering/science. Our study links observable demographic characteristics to the risk-taking propensities of CEOs which in our view would be of interest to hiring and compensation committees on corporate boards as they select (or renew the contracts of) senior executives.
Journal: Applied Economics
Pages: 3016-3030
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001424
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001424
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Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:3016-3030
Template-Type: ReDIF-Article 1.0
Author-Name: Stavroula P. Fameliti
Author-X-Name-First: Stavroula P.
Author-X-Name-Last: Fameliti
Author-Name: Vasiliki D. Skintzi
Author-X-Name-First: Vasiliki D.
Author-X-Name-Last: Skintzi
Title: Statistical and economic performance of combination methods for forecasting crude oil price volatility
Abstract:
This article aims to investigate whether a wide variety of combination methods, ranging from simple averaging approaches to time-varying techniques based on the past performance of the single models and regression tools, improve forecasting accuracy, risk management and economic gains across different forecasting horizons in a crude oil future framework. For this purpose, we implement various combination methods in fourteen HAR-RV models including different characteristics and uncertainty factors and evaluate their performance through statistical, risk management and economic loss functions. The empirical analysis yields some important conclusions: (i) sophisticated combinations improve the forecasting accuracy in all forecasting horizons, (ii) from a risk management perspective, regression-based combinations predict better potential loss of an investment on crude oil futures compared to individual models, (iii) machine learning and non-parametric combinations lead to higher economic gains across all forecasting horizons in a portfolio exercise and (iv) combinations are considered as a better alternative to single models using various robustness checks although the best performer among the combination methods is not stable across applications.
Journal: Applied Economics
Pages: 3031-3054
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001425
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Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:3031-3054
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Jebaraj Benjamin
Author-X-Name-First: Samuel Jebaraj
Author-X-Name-Last: Benjamin
Author-Name: Pallab Kumar Biswas
Author-X-Name-First: Pallab Kumar
Author-X-Name-Last: Biswas
Author-Name: M Srikamalaladevi M Marathamuthu
Author-X-Name-First: M Srikamalaladevi
Author-X-Name-Last: M Marathamuthu
Author-Name: Murugesh Arunachalam
Author-X-Name-First: Murugesh
Author-X-Name-Last: Arunachalam
Title: Social Media Sentiments and Firm Value
Abstract:
This paper examines the link between social media sentiments and firm value. Using a sample of Fortune 500 firms from 2010 to 2017, we find that positive social media sentiments increase firm value, whereas negative social media sentiments do not decrease firm value. Next, we consider the link between social media sentiments and firm value in the context of the firms’ environmental, social, and governance performance. Our main findings remain unchanged for firms with low environmental, social, and governance performance. We also find that these results are more pronounced for firms in industries with high advertising spending. Our results are supported by a series of robustness tests.
Journal: Applied Economics
Pages: 2983-2997
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001421
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001421
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Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:2983-2997
Template-Type: ReDIF-Article 1.0
Author-Name: Qian Cao
Author-X-Name-First: Qian
Author-X-Name-Last: Cao
Author-Name: Bing Ma
Author-X-Name-First: Bing
Author-X-Name-Last: Ma
Author-Name: Yanqi Zhu
Author-X-Name-First: Yanqi
Author-X-Name-Last: Zhu
Title: Shadow banking participation and stock market crash risk: evidence from China
Abstract:
In this paper, we use public entrusted loan announcements and financial data on China listed A-shares to identify shadow banking participation as a new factor affecting firms’ stock market crash risks. We also provide new sets of empirical evidence to the inconclusive literature about how borrowing and lending behaviours affect investors’ perceptions and the firms. We find that both borrowing and lending of small firms reduce firms’ stock market crash risks, and lending of big firms increases firms’ crash risks. Moreover, our results on affiliated transactions suggest the existence of both risk-sharing and negative spillover effects in Chinese business groups. The results are robust to different fixed effects, different standard error clustering specifications, alternative crash risk measures and additional control variables.
Journal: Applied Economics
Pages: 2969-2982
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2001420
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Template-Type: ReDIF-Article 1.0
Author-Name: Qichuan Jiang
Author-X-Name-First: Qichuan
Author-X-Name-Last: Jiang
Author-Name: Xuejiao Ma
Author-X-Name-First: Xuejiao
Author-X-Name-Last: Ma
Title: Risk transmission between old and new energy markets from a multi-scale perspective: the role of the EU emissions trading system
Abstract:
The trading market of carbon emission permits is not only an effective tool for tackling climate change, but it also reinforces the connection between carbon and energy markets by risk transmission. This paper investigates the volatility spillover effects and dynamic correlation between fossil energy, clean energy and the European Union carbon markets by applying the asymmetric BEKK- and DCC-GARCH models in a time-frequency framework and designs the portfolio strategies. Empirical results display that fossil energy market has a significantly positive impact on the clean energy market at most scales, but the feedback transmission is relatively weak. Two indirect volatility spillover effects exist between the three markets, which are ‘fossil energy→carbon→clean energy’ and ‘clean energy→carbon→fossil energy’, suggesting that the carbon market plays a vital role in bridging the clean and fossil energy markets. Significant time-varying asymmetric effects are identified between the three markets, and the carbon market is confirmed to offer the least expensive hedge to an investment in oil. Our findings can provide meaningful implications for policymakers to design market mechanism and investors to adjust hedging strategies and diversify their portfolios.
Journal: Applied Economics
Pages: 2949-2968
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2000931
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Author-Name: Celiwe Muvaraidzi Nithammer
Author-X-Name-First: Celiwe Muvaraidzi
Author-X-Name-Last: Nithammer
Author-Name: Jugal Mahabir
Author-X-Name-First: Jugal
Author-X-Name-Last: Mahabir
Author-Name: Johane Dikgang
Author-X-Name-First: Johane
Author-X-Name-Last: Dikgang
Title: Efficiency of South African water utilities: a double bootstrap DEA analysis
Abstract:
Although the efficiency of the water sector has been studied extensively utilizing data envelopment analysis (DEA), most of the literature tends to use the conventional DEA model to compute efficiency scores. In addition, there are many studies that undertake a second stage regression of the efficiency scores against a set of covariates. However, such second-stage analyses are problematic due to potential serial correlation inherent in the estimated efficiency scores. To determine the bias-corrected efficiency scores of rural and urban water utilities in South Africa, this study uses a robust, non-parametric DEA bootstrapping model to generate them. Moreover, little is known about relative performance of the conventional DEA versus bias-corrected DEA. In addition, the truncated double-bootstrap regression results provide insights into the drivers of efficiency, including how water policies and the political and institutional contexts of water utilities can impact relative efficiencies. We found that there are significant differences between the rankings and efficiency scores generated by the conventional DEA model compared to the double-bootstrap DEA model, for both urban and rural samples. The regression model found the location and the ratio of metered to unmetered connections to be significant determinants of efficiency for both urban and rural water utilities.
Journal: Applied Economics
Pages: 3055-3073
Issue: 26
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2002802
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Handle: RePEc:taf:applec:v:54:y:2022:i:26:p:3055-3073
Template-Type: ReDIF-Article 1.0
Author-Name: Xuechen Meng
Author-X-Name-First: Xuechen
Author-X-Name-Last: Meng
Author-Name: Shanlang Lin
Author-X-Name-First: Shanlang
Author-X-Name-Last: Lin
Author-Name: Gui Ren
Author-X-Name-First: Gui
Author-X-Name-Last: Ren
Title: The effect of HSR connection on urban cluster centrality: evidence from China
Abstract:
In a time varying difference-in-differences setting, we empirically test the impact of high-speed rail (HSR) connections on urban clusters in China. We construct an urban cluster centrality index to reflect changes in the economic positions of counties in clusters. The results show the following: (1) The HSR connection has a positive effect on urban cluster centrality, especially for counties with higher centrality. (2) The heterogeneity effect indicates that western counties centrality has greatly increased their urban cluster centrality compared to eastern areas. (3) Mechanism estimation indicates that the different result to western and eastern counties is due to the high skill labour transfer from eastern to western counties.
Journal: Applied Economics
Pages: 3088-3102
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003288
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Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3088-3102
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Gokhan Yucel
Author-X-Name-First: Ali Gokhan
Author-X-Name-Last: Yucel
Author-Name: Cihat Koksal
Author-X-Name-First: Cihat
Author-X-Name-Last: Koksal
Author-Name: Sevil Acar
Author-X-Name-First: Sevil
Author-X-Name-Last: Acar
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: The impact of COVID-19 on Turkey’s tourism sector: fresh evidence from the fractional integration approach
Abstract:
The aim of this paper is to analyze whether the profound effects of COVID-19 on Turkey’s tourism sector will be permanent or transitory. Such an investigation deserves attention during the ongoing pandemic due to the importance of Turkey in the international tourism industry. To better understand and analyze the dynamics of tourism, we examine a long period of time spanning from January 1977 to March 2021 using a fractional integration approach. The findings provide clear-cut evidence that the shocks to the tourism sector display very low degrees of persistence in the pre-pandemic period whereas degrees of persistence in the post-pandemic period are very high. We also identify the changes in the persistence of tourism month by month. Overall, the impacts of COVID-19 on Turkey’s tourism will not be transitory. Therefore, the government should be actively involved in the recovery process of the tourism sector if Turkey wants to reach the number of tourist arrivals it once used to host. Also, the methodology employed in this study could be used as a benchmark to explore the impacts of the ongoing pandemic on other sectors (JEL: C22: I15: L83: Z32).
Journal: Applied Economics
Pages: 3074-3087
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2022.2047602
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047602
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Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3074-3087
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Rogna
Author-X-Name-First: Marco
Author-X-Name-Last: Rogna
Author-Name: Bich Diep Nguyen
Author-X-Name-First: Bich Diep
Author-X-Name-Last: Nguyen
Title: Firearms law and fatal police shootings: a panel data analysis
Abstract:
Among industrialized countries, the U.S. holds two somewhat inglorious records: the highest rate of fatal police shootings and the highest rate of deaths related to firearms. The latter has been associated with firearms prevalence mostly due to permissive legislation in several member states. The present paper investigates the relation between firearms legislation and the number of fatal police shooting episodes using a seven–year U.S state–level panel dataset. Our results confirm the negative impact of stricter firearms regulations on deadly use of force by police officers found in previous cross–sectional studies. However, in contrast with previous findings, we show that such impact is not mediated by gun availability. We also show that regulations pertaining to gun owner accountability are most effective in reducing fatal police shooting incidence. These results suggest that, from a public health perspective, what matters most is who owns guns rather than how many guns are owned.
Journal: Applied Economics
Pages: 3121-3137
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003290
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Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3121-3137
Template-Type: ReDIF-Article 1.0
Author-Name: Wei Kuang
Author-X-Name-First: Wei
Author-X-Name-Last: Kuang
Title: Is hedge fund a hedge for equity markets?
Abstract:
The COVID-19 pandemic has severely impacted financial markets, triggering a flight from risky to safe-haven assets. This paper analyzes the safe-haven properties of hedge funds. Specifically, we examine the relative change in equity portfolio risk with a proportional allocation to hedge fund. Our analysis indicates that adding a composite hedge fund index to an equity portfolio results in a risk reduction relative to holding equities alone. The result is shown to hold across a range of allocation weightings and periods. The hedging effectiveness, however, varies across hedge funds strategies, downside risk measures, and allocation weightings. The arbitrage and event-type strategies are prone to tail risks and the undesired third and fourth moment of returns attributes reduce the effectiveness of tail risk reduction. This suggests that hedge funds can be used to provide shelter from turbulence in traditional markets, but appropriate strategies need to be selected to achieve effective hedging.
Journal: Applied Economics
Pages: 3154-3179
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003748
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Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3154-3179
Template-Type: ReDIF-Article 1.0
Author-Name: François-Charles Wolff
Author-X-Name-First: François-Charles
Author-X-Name-Last: Wolff
Author-Name: Frédéric Salladarré
Author-X-Name-First: Frédéric
Author-X-Name-Last: Salladarré
Title: A first-sale price index of seafood products: evidence from France 1994-2020
Abstract:
Studies on price trends of seafood products in the medium run remain scarce. In this paper, we investigate changes in first-sale prices of fish sold in France over the last 25 years. Drawing on the index number literature, we construct monthly chained fish price indices which are free from seasonal fluctuations. Our empirical analysis relies on a dataset including 126 million transactions completed in all French fish markets from 1994 to 2020. We show that first-sale prices of seafood products have substantially increased in the medium run, more than the inflation rate, except during the economic crisis from 2007 to 2009 and recently in 2020 due to the Covid pandemic. However, those higher prices have not always led to an increase in sales revenue of fishermen because of the continuous decrease in fish catches. In particular, the economic situation of fisheries has substantially worsen since 2017.
Journal: Applied Economics
Pages: 3103-3120
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003289
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2003289
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Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3103-3120
Template-Type: ReDIF-Article 1.0
Author-Name: Lingli Xu
Author-X-Name-First: Lingli
Author-X-Name-Last: Xu
Author-Name: Liang Wang
Author-X-Name-First: Liang
Author-X-Name-Last: Wang
Author-Name: Christian Nygaard
Author-X-Name-First: Christian
Author-X-Name-Last: Nygaard
Title: Locational decisions and subjective well-being: an empirical study of Chinese urban migrants
Abstract:
Motivated by the popularity of ‘Run away from Beijing, Shanghai, and Guangzhou’ saying in China this paper tests the determinants of subjective well-being (SWB) of long-term migrants and the extent to which migrants make optimal locational decisions in terms of SWB. China’s cities are divided into 4 core first-tier cities, 15 new first-tier cities, and non-first-tier cities (94 in the sample) reflecting different levels of economic opportunity and amenities. Migrants can only be observed in their present location. Hence, we use a semi-parametric marginal treatment effect method to compare actual and counterfactual SWB outcomes. Results shows that migrants’ SWB is greater in non-first-tier cities than first-tier cities; the determinants of SWB differ for male and female migrants; and, female migrants with urban hukou are typically better off in the four core first-tier cities as well as other first-tier cities. Overall, there is thus a marked gender differences in migrants’ optimal locational choice. From a productivity and social cohesion perspective, these results make it imperative that public policy in China addresses the gender and spatial sorting imbalances that arises from differences in SWB determinants and optimal location as ever more educated young people join the labour force.
Journal: Applied Economics
Pages: 3180-3195
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005237
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Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3180-3195
Template-Type: ReDIF-Article 1.0
Author-Name: Jeremy K. Nguyen
Author-X-Name-First: Jeremy K.
Author-X-Name-Last: Nguyen
Author-Name: Adam Karg
Author-X-Name-First: Adam
Author-X-Name-Last: Karg
Author-Name: Abbas Valadkhani
Author-X-Name-First: Abbas
Author-X-Name-Last: Valadkhani
Author-Name: Heath McDonald
Author-X-Name-First: Heath
Author-X-Name-Last: McDonald
Title: Predicting individual event attendance with machine learning: a ‘step-forward’ approach
Abstract:
Accurately predicting attendance at live events has important operational and financial implications for the arts, entertainment and sport industries. Advances in machine learning offer the potential to improve these processes. Using 10 rounds of attendance data from 5,946 season ticket holders of one professional football team (i.e. 59,460 decisions), we assess the ability of four machine learning approaches to predict attendance. Our results indicate that two machine learning algorithms, XGBoost and Support Vector Machine (SVM), outperform the most commonly employed methodology for modelling individual sport attendance (i.e. logistic regression), in terms of accuracy, recall, F-score and area under the curve (AUC). Random forest and boosted aggregation (bagging) approaches are also compared. Our results suggest that adopting machine learning methodologies, and in particular, XGBoost and SVM, offers providers of live events an improved ability to understand and predict individual attendance, and insight into which consumers are most receptive to changing attendance decisions.
Journal: Applied Economics
Pages: 3138-3153
Issue: 27
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2003747
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Handle: RePEc:taf:applec:v:54:y:2022:i:27:p:3138-3153
Template-Type: ReDIF-Article 1.0
Author-Name: Dong Lu
Author-X-Name-First: Dong
Author-X-Name-Last: Lu
Author-Name: Tian Xia
Author-X-Name-First: Tian
Author-X-Name-Last: Xia
Author-Name: Hang Zhou
Author-X-Name-First: Hang
Author-X-Name-Last: Zhou
Title: Foreign exchange intervention and monetary policy rules under a managed floating regime: evidence from China
Abstract:
This paper investigates the consequences of foreign exchange (FX) intervention in monetary policy under a managed floating regime. Focusing on China’s FX intervention, we identify periods of strong and weak FX intervention using a Markov regime switching approach. We then evaluate quantity-based monetary policy rules using both regime switching reduced-form and structural estimations. In particular, monetary policy regimes obtained from the structural estimation match well with the previously identified intervention regimes. We find that the People’s Bank of China has significant exchange rate stabilization incentives during periods of strong FX intervention, and that the monetary policy rule depends on the state of FX intervention. Furthermore, our estimations point to a trade-off between the central bank’s internal and external policy targets in that strong FX intervention leads to weak responses to domestic GDP and inflation fluctuations.
Journal: Applied Economics
Pages: 3226-3245
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005767
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005767
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Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3226-3245
Template-Type: ReDIF-Article 1.0
Author-Name: Régis Y. Chenavaz
Author-X-Name-First: Régis Y.
Author-X-Name-Last: Chenavaz
Author-Name: Isabelle Pignatel
Author-X-Name-First: Isabelle
Author-X-Name-Last: Pignatel
Title: Utility foundation of a Cobb-Douglas demand function with two attributes
Abstract:
It is known how to derive, from a utility maximization programme, a Cobb-Douglas demand function depending on the sole product price. This article shows how to derive a Cobb-Douglas demand function, which depends on both the product price and quality. More broadly, it offers a normative foundation, with a quasi-linear utility function, to the use of a Cobb-Douglas demand function of two attributes. It also provides simple measures of consumer surplus and social welfare.
Journal: Applied Economics
Pages: 3206-3211
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005238
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005238
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Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3206-3211
Template-Type: ReDIF-Article 1.0
Author-Name: Leqi Zhao
Author-X-Name-First: Leqi
Author-X-Name-Last: Zhao
Author-Name: Charles Harvie
Author-X-Name-First: Charles
Author-X-Name-Last: Harvie
Author-Name: Amir Arjomandi
Author-X-Name-First: Amir
Author-X-Name-Last: Arjomandi
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: Entrepreneurs and China’s private sector SMEs’ performance
Abstract:
The Chinese government adopted the ‘Mass Entrepreneurship and Innovation’ (MEI) strategy in 2015 to increase the number of entrepreneurs, the number of private small-medium enterprises (SMEs) and firm innovation. Using China’s firm-level data, we find that different entrepreneurial factors such as startup motivation, personal characteristics (age, gender), human capital (education, experience) and guanxi (political and business connections) impact the technical efficiency scores of SMEs in Eastern and non-Eastern regions differently. Our results also show that regional economic development and entrepreneurial quality disparities in China’s economy warrant entrepreneurial policies tailored to address these differences if they are to be effective in improving the technical efficiency performance of firms. Based on our findings, one may argue that the MEI strategy will not be adequate by simply focusing upon increasing the number of entrepreneurs without considering regional differences in development and entrepreneur characteristics.
Journal: Applied Economics
Pages: 3279-3295
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2006135
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2006135
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Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3279-3295
Template-Type: ReDIF-Article 1.0
Author-Name: Touhami Abdelkhalek
Author-X-Name-First: Touhami
Author-X-Name-Last: Abdelkhalek
Author-Name: Dorothée Boccanfuso
Author-X-Name-First: Dorothée
Author-X-Name-Last: Boccanfuso
Title: Human Capital Index (HCI) – from uncertainty to robustness of comparisons
Abstract:
In order to monitor progress in human development within and between countries and over time, several simple and composite indices have been developed and are regularly used, particularly in public policy decision-making. In 2019, the World Bank adopted an index developed by Kraay (2018), the Human Capital Index (HCI).It combines demographic, education, and health dimensions on a complementary statistical and econometric basis. It is used by the World Bank in the area of human development for monitoring and comparison purposes, in time and space. Beyond the debate about the construction of the index itself in terms of weighting and aggregation, the $$HCI$$HCI is subject to statistical and econometric uncertainties that are not adequately captured by comparisons and are therefore, not robust.In this article, we propose a systematic approach taking into account these simultaneous uncertainties using a projection method. We present its practical implementation to construct confidence intervals to the $$HCI$$HCI that reflect these uncertainties. It appears that if confidence intervals overlap for two countries or for the same country over time, then comparisons would be inconclusive regardless of the point estimates.
Journal: Applied Economics
Pages: 3246-3260
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005768
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005768
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Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3246-3260
Template-Type: ReDIF-Article 1.0
Author-Name: Désiré Avom
Author-X-Name-First: Désiré
Author-X-Name-Last: Avom
Author-Name: Chrysost Bangake
Author-X-Name-First: Chrysost
Author-X-Name-Last: Bangake
Author-Name: Hermann Ndoya
Author-X-Name-First: Hermann
Author-X-Name-Last: Ndoya
Title: Does bank concentration stem from financial inclusion in Africa?
Abstract:
This paper provides original econometric evidence on whether banking concentration stems from financial inclusion in African countries. In applying a system generalized methods of moments (SGMM) and the panel threshold regression method to a sample of 30 African countries for 2004–2017, we find two main results. First, bank concentration negatively and significantly affects financial inclusion in Africa. Second, as far as the nonlinear relationship is concerned, we find two extreme regimes with a smooth shift characterizing the bank concentration–financial inclusion nexus, with respect to conditional variables; bank concentration effects are negative and significant under the first regime and positive and significant under the second. Furthermore, our findings show that the nonlinear relationship between bank concentration and financial inclusion depends on the levels of financial freedom, mobile phones penetration, protection of property rights, control of corruption and regulatory quality. The results are robust to alternative measures of banking market structure, such as Lerner index and Boone indicator and to the panel smooth transition regression (PSTR).
Journal: Applied Economics
Pages: 3261-3278
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2006134
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2006134
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Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3261-3278
Template-Type: ReDIF-Article 1.0
Author-Name: Xinxiang Shi
Author-X-Name-First: Xinxiang
Author-X-Name-Last: Shi
Author-Name: Mingming Zhuang
Author-X-Name-First: Mingming
Author-X-Name-Last: Zhuang
Author-Name: Cheng King
Author-X-Name-First: Cheng
Author-X-Name-Last: King
Title: Getting implicit incentives right in SOEs: research on executive perks in China’s anticorruption movement
Abstract:
The anticorruption movement since 2012 has a deep impact on Chinese social governance and economic development. This paper examines the effect of anticorruption rules on the performance of state-owned enterprises (SOEs) and suggests that perquisite consumption of SOEs has an implicit incentive for the executives. Although anticorruption rules restrict the excess perks of SOEs and reduce financial performance, it unexpectedly boosts SOEs’ capital market value. A few mechanisms may be at work: (i) the diminishing marginal utility of executive perquisite consumption of SOEs; (ii) a refined macroeconomic environment leads to better performance in company value; and (iii) the decreased financing costs has a positive effect on the company value of SOEs.
Journal: Applied Economics
Pages: 3212-3225
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2005239
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2005239
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Template-Type: ReDIF-Article 1.0
Author-Name: Hyoungjong Kim
Author-X-Name-First: Hyoungjong
Author-X-Name-Last: Kim
Title: A finite sample correction for the panel Durbin–Watson test
Abstract:
This study shows that the panel Durbin–Watson $$d$$d test is incapable of distinguishing temporal heteroskedasticity and serial correlation with short time series. The study proposes a new finite sample correction for solving this weakness of the panel Durbin–Watson test. Monte Carlo simulations demonstrate that the corrected statistic performs better in terms of size and power than the extant panel $$d$$d tests. It leads to more accurate inferences in empirical studies.
Journal: Applied Economics
Pages: 3197-3205
Issue: 28
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2020.1869172
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1869172
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Handle: RePEc:taf:applec:v:54:y:2022:i:28:p:3197-3205
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Belmert Milindi
Author-X-Name-First: Chris Belmert
Author-X-Name-Last: Milindi
Author-Name: Roula Inglesi-Lotz
Author-X-Name-First: Roula
Author-X-Name-Last: Inglesi-Lotz
Title: The role of green technology on carbon emissions: does it differ across countries’ income levels?
Abstract:
This study examines the impact of green technology on CO2 emissions in a sample of 45 countries for 1989–2018. Renewable energy consumption and environmental-related patents are used as indicators of green technology. We consider the production of renewable energy and the development of climate-related innovation as ‘two sides of the same coin’. One needs to be complemented by the other for countries to be successful in the fight against climate change. After applying the fixed-effect method with Driscoll and Kraay standard errors, results reveal that renewable energy consumption significantly reduces CO2 emissions in the full sample and all three subsamples (High-income, Upper-middle-income, and Lower-middle income countries). However, environmental-related patents significantly lower CO2 emissions only in very high-income countries. This paper also analyses how CO2 emissions influence the development of green technology and carbon-intensive technology. A negative association is found between renewable energy and CO2 emissions in the high-income and upper-middle-income groups. Environmental-related patents respond positively to carbon emissions only in high-income countries. The results allow us to draw important conclusions for energy policies. Among the necessary measures to be adopted, developing countries should not neglect the promotion of green innovation, which is a critical condition for carbon neutrality achievement.
Journal: Applied Economics
Pages: 3309-3339
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.1998331
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1998331
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Template-Type: ReDIF-Article 1.0
Author-Name: Roland Cheo
Author-X-Name-First: Roland
Author-X-Name-Last: Cheo
Author-Name: Tingting Han
Author-X-Name-First: Tingting
Author-X-Name-Last: Han
Author-Name: Kainan Huang
Author-X-Name-First: Kainan
Author-X-Name-Last: Huang
Author-Name: Jingping Li
Author-X-Name-First: Jingping
Author-X-Name-Last: Li
Title: Prosocial village leaders and the resettlement outcomes of land-lost farmers: evidence from Qingdao, China
Abstract:
This paper examines whether the prosociality of village leaders who were involved in the original implementation of a resettlement decision impact the well-being of households from seven villages four years after the displacement. In particular, we report the significant statistical correlation between the level of group cooperation of village officials as elicited from a public good game in seven rural villages and the reported levels of life satisfaction four years after the resettlement. The data comes from two sources: (i) a laboratory experiment with village officials at the time of resettlement, and (ii) follow-up telephone interviews with resettled villagers. We find that these prosocial attitudes of leaders complement other sustainable livelihood measures in promoting the well-being of resettled villagers.
Journal: Applied Economics
Pages: 3353-3372
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2008298
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2008298
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Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3353-3372
Template-Type: ReDIF-Article 1.0
Author-Name: Juan Aparicio
Author-X-Name-First: Juan
Author-X-Name-Last: Aparicio
Author-Name: Jose M. Cordero
Author-X-Name-First: Jose M.
Author-X-Name-Last: Cordero
Author-Name: Lidia Ortiz
Author-X-Name-First: Lidia
Author-X-Name-Last: Ortiz
Title: Plausible values and their use in efficiency analyses with educational data
Abstract:
There is extensive literature focused on the evaluation of efficiency in the education sector, both at the micro level, analyzing the performance of students or schools, and at the macro level, exploring the behavior of regions or countries. This type of studieshas been driven by exploiting data available in international large-scale assessments, where output measures are usually represented by the so-called plausible values, understood as a representation of the range of the abilities of each student. In this study, we analyze the different options available to incorporate these plausible values in applied studies focused on measuring efficiency and how the results obtained can be affected according to the selected criterion. To do this, we assess the efficiency of Spanish schools participating in PISA using the two most common methodologies in this field: data envelopment analysis and stochastic frontier analysis and considering three different proxies for the educational output: (i) a single plausible value; (ii) an aggregate measure calculated from the ten plausible values available; (iii) an average of the estimates made with the ten plausible values separately. The main conclusion derived from our results is that there are hardly any differences between in the estimates made with different strategies.
Journal: Applied Economics
Pages: 3340-3352
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2006136
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2006136
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Template-Type: ReDIF-Article 1.0
Author-Name: Dănuţ-Vasile Jemna
Author-X-Name-First: Dănuţ-Vasile
Author-X-Name-Last: Jemna
Author-Name: Mihaela David
Author-X-Name-First: Mihaela
Author-X-Name-Last: David
Title: FERTILITY DECLINE AND SOCIO-ECONOMIC UNCERTAINTY IN CENTRAL AND EASTERN EUROPEAN COUNTRIES AFTER 1990
Abstract:
How do changes in socio-economic uncertainty affect fertility? For the Central and Eastern European11In this group of countries, there are usually included: Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, FYR Macedonia, the Republic of Moldova, Montenegro, Poland, Romania, the Russian Federation, Serbia, Slovakia, Slovenia, and Ukraine. In our study, we limit the group to the EU members, namely to 11 countries. (CEE) countries, the literature considers economic uncertainty as a determinant factor, among others, for explaining the fertility decline after the fall of the communist regime. In this paper we evaluate the theoretical framework proposed in literature and empirically analyse the relationship between socio-economic uncertainty and fertility in the CEE countries, by using several measures of uncertainty and controlling for social and demographic variables. Employing the panel methodology for national data between 1990 and 2018, we analyse the cross-country and time variation impact of female employment, unemployment, and output growth volatility upon fertility.
Journal: Applied Economics
Pages: 3296-3308
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.1991564
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1991564
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Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3296-3308
Template-Type: ReDIF-Article 1.0
Author-Name: Anh-Tu Nguyen
Author-X-Name-First: Anh-Tu
Author-X-Name-Last: Nguyen
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Author-Name: W. Robert J. Alexander
Author-X-Name-First: W. Robert J.
Author-X-Name-Last: Alexander
Author-Name: Shih-Hao Lu
Author-X-Name-First: Shih-Hao
Author-X-Name-Last: Lu
Title: Openness to trade, foreign direct investment, and economic growth in Vietnam
Abstract:
Using data over the period 1986 to 2020 and employing the Auto Regressive Distributed Lag bounds testing technique, we examine the linkages amongst economic growth, foreign direct investment (FDI), exports, and imports in Vietnam. The ARDL technique is particularly well-suited in the presence of a mixture of stationary and non-stationary variables. We find a long-run relationship indicating that FDI strongly promotes economic growth, but exports and imports do not have a statistically significant impact on growth. The robustness of these results is confirmed by a range of diagnostic tests and alternative methods of estimation. Additionally, the vector error correction model reveals that, in the short-run, both imports and exports have bidirectional Granger causality with FDI, while FDI has bidirectional Granger causality with economic growth in the long-run. Our findings suggest some policies to develop FDI to bolster economic growth.
Journal: Applied Economics
Pages: 3373-3391
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009112
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009112
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuai Chu
Author-X-Name-First: Shuai
Author-X-Name-Last: Chu
Author-Name: Masanori Kuroki
Author-X-Name-First: Masanori
Author-X-Name-Last: Kuroki
Author-Name: Xiangbo Liu
Author-X-Name-First: Xiangbo
Author-X-Name-Last: Liu
Title: Do research universities boost regional economic development? -A case study of University of Science and Technology of China
Abstract:
This study examines the interactions between the presence of research universities and regional economic development, drawing on the event of the forced relocation of the University of Science and Technology of China. We analyze the development in the treated regions compared with a set of control regions that are created using the synthetic control method and find that research universities may slow regional economic development. We then perform a series of robustness checks, and the main results carry through. By using more exogenous shocks and a more rational identification strategy, our study provides new evidence that research universities do not necessarily boost regional economic development.
Journal: Applied Economics
Pages: 3392-3411
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009114
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009114
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Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3392-3411
Template-Type: ReDIF-Article 1.0
Author-Name: Qing Xu
Author-X-Name-First: Qing
Author-X-Name-Last: Xu
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Fang Wang
Author-X-Name-First: Fang
Author-X-Name-Last: Wang
Author-Name: Qing Yang
Author-X-Name-First: Qing
Author-X-Name-Last: Yang
Author-Name: Jin Liu
Author-X-Name-First: Jin
Author-X-Name-Last: Liu
Title: Social pensions and risky financial asset holding in China
Abstract:
This study explores the impact of social pensions on risky household financial asset holding, taking the Urban and Rural Residents Pension Scheme (URRPS) in China as an example. We combine regression discontinuity with the difference-in-difference approach to analyze the 2015 and 2017 China Household Finance Survey (CHFS) data. The results show that the URRPS has significantly increased the likelihood of holding risky financial assets among Chinese households. Furthermore, the effect is larger for urban households than for rural households. Apart from social pensions, marital and health status, education, risk attitude, household size, asset value, and urban residence also affect the households’ risky financial asset holdings.
Journal: Applied Economics
Pages: 3412-3425
Issue: 29
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009758
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009758
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Handle: RePEc:taf:applec:v:54:y:2022:i:29:p:3412-3425
Template-Type: ReDIF-Article 1.0
Author-Name: Yue Ming Zheng
Author-X-Name-First: Yue Ming
Author-X-Name-Last: Zheng
Author-Name: Qin Lv
Author-X-Name-First: Qin
Author-X-Name-Last: Lv
Author-Name: Ying Dong Wang
Author-X-Name-First: Ying Dong
Author-X-Name-Last: Wang
Title: Economic development, technological progress, and provincial carbon emissions intensity: empirical research based on the threshold panel model
Abstract:
To analyze the non-linear impact of technological progress on carbon emission intensity under different economic development levels, based on the adjusted STIRPAT model and threshold panel model, this study uses the IPCC inventory method and the DEA-Malmquist method to measure the carbon emissions intensity and technological progress index of 30 provinces in China from 2001 to 2016 to empirically examine the impact of technological progress on carbon emissions intensity. The results reveal that technological progress will increase carbon emissions intensity; technological progress with economic development level as the threshold variable has a single threshold effect on carbon emissions intensity, and the threshold value is 10.5656. Correspondingly, when the per capita GD is lower than 38,777.68 yuan, technological progress will increase the intensity of carbon emissions; when it is higher than 38,777.68 yuan, there will be a reduction effect.
Journal: Applied Economics
Pages: 3495-3504
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009760
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009760
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Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3495-3504
Template-Type: ReDIF-Article 1.0
Author-Name: Yingying Yi
Author-X-Name-First: Yingying
Author-X-Name-Last: Yi
Author-Name: Xiaoxiao Yu
Author-X-Name-First: Xiaoxiao
Author-X-Name-Last: Yu
Author-Name: Xiaotong Sun
Author-X-Name-First: Xiaotong
Author-X-Name-Last: Sun
Title: Will the liberalization of intermediate trade restrain corporate pollution emissions?—Empirical evidence from Chinese micro-enterprises
Abstract:
Based on the integrated data of the industrial pollution database, the customs database and the Chinese industrial enterprise database from 2000 to 2012, the system GMM Model is used to estimate the relationship between the liberalization of intermediate goods trade and corporate pollution emissions. Also, it is used to explore whether environmental regulations can achieve the reduction of intermediate goods trade effect. The results show that by dividing intermediate trade liberalization into importation and exportation, it aggravates the pollution emission of enterprises, while environmental regulations alleviate it. Heterogeneity analysis shows that the importation of intermediate products aggravates enterprise pollution in processing trade mode and reduces pollution in general trade mode. While exportation of intermediate products aggravates pollution in both of these two trade modes and only processing one is statistically significant. Geographically, both importing and exporting of intermediate goods aggravate enterprise emissions in the East and Midwest. More specifically, importation plays a bigger role in the Midwestern areas as exportation does in the eastern place. Furthermore, we discover that different industries differ greatly by dividing them into 11 categories. Therefore, it is necessary to optimize the trade structure of intermediate goods while considering the different development stages of different regions at the same time.
Journal: Applied Economics
Pages: 3521-3536
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2010644
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2010644
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Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3521-3536
Template-Type: ReDIF-Article 1.0
Author-Name: Marcella Cartledge
Author-X-Name-First: Marcella
Author-X-Name-Last: Cartledge
Author-Name: Luke Taylor
Author-X-Name-First: Luke
Author-X-Name-Last: Taylor
Title: Incentive pay and decision quality: evidence from NCAA football coaches
Abstract:
Using play-by-play American football data and panel data on head coach remuneration, we test whether a head coach’s incentive pay affects the quality of their decisions. We proceed by first estimating an ‘optimal strategy’ for first-down offensive plays, then investigate whether the gap between actual and optimal choices is affected by incentive pay. In contrast to merely looking at the outcome of an agent’s choice, our approach considers the decision environment and the resources available. We find a small, but significant, negative effect of incentive pay on decision quality. Critically, this effect is not found when looking at raw outcome measures.
Journal: Applied Economics
Pages: 3505-3520
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2010643
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2010643
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Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3505-3520
Template-Type: ReDIF-Article 1.0
Author-Name: Shoude Li
Author-X-Name-First: Shoude
Author-X-Name-Last: Li
Author-Name: Dong D. Li
Author-X-Name-First: Dong D.
Author-X-Name-Last: Li
Title: Quality improvement and process innovation of a firm facing reference price effects in a dynamic monopoly
Abstract:
In this article, we investigate a monopolist’s efforts for product innovation (or quality improvement) and process innovation (or reducing marginal production cost) with reference price effects in a dynamic setting. The significant features of our work are: (i) a monopolist deals with customer behavior according to economic principles and determines the price of the product, besides, the monopolist carries out the activities of product and process innovation; (ii) the consumers’ demand structure depends on product price, product quality and reference price, and takes a separable multiplicative way between the state variables (product quality and reference price) and the control variables (product price). Our main results suggest that (i) there exists unique saddle-point steady-state equilibrium under monopoly and social planning; (ii) as the memory parameter increases, it is very likely that the monopolist’s steady-state effort for process innovation is greater than that for product innovation; (iii) the efforts for product and process innovation under social planning are greater than that under monopoly; (iv) although the price is still determined by the monopolist under the social planning, the price under the social planning is higher than that under monopoly and (v) there is a negative price-quality relationship.
Journal: Applied Economics
Pages: 3537-3556
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2011105
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2011105
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Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3537-3556
Template-Type: ReDIF-Article 1.0
Author-Name: Ziruo Li
Author-X-Name-First: Ziruo
Author-X-Name-Last: Li
Author-Name: Jionghao Huang
Author-X-Name-First: Jionghao
Author-X-Name-Last: Huang
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Title: ‘Border’ effects of unobserved ‘borders’ in China’s internal trade
Abstract:
Based on the input-output model, this article constructs a database of inter-provincial trade flows covering 26 industries and 28 provinces of China from 1992 to 2017. By heuristic search algorithm and iterative regression method, this article identifies the location of unobserved ‘borders’ in China’s internal trade. Existing in the Northeast, Northwest, and Southwest of China, the ‘borders’ reduce inter-regional trade by 36.11–39.10%, 47.85–52.43%, and 40.07–47.06% from 1992 to 2017, respectively. The results are robust against employing alternative methodology, industry-level trade flows as well as alternative measurement of transportation costs. Social networks, difference in industrial structure and their geographic structures might adjust slowly with the development of the economic and even affect the ‘border’ effects. The ‘border’ effects are neither administrative barriers nor statistical artefacts, but arise more from spatial heterogeneity related to fundamentals.
Journal: Applied Economics
Pages: 3439-3481
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.1994519
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994519
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Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3439-3481
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Barroso del Toro
Author-X-Name-First: Alberto
Author-X-Name-Last: Barroso del Toro
Author-Name: Xavier Tort-Martorell
Author-X-Name-First: Xavier
Author-X-Name-Last: Tort-Martorell
Author-Name: Miguel Angel Canela
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Canela
Title: How shareholders react to sustainable narratives about leading European energy companies? An event study using sentiment data from the global database for events, language and tone (GDELT)
Abstract:
This study aims to investigate how the shareholders of leading European energy companies value sustainability narratives. It uses news from the Global Database of Events, Location, Language, and Tone (GDELT) and analyses the cumulative average abnormal returns (CAAR) and abnormal volatilities (AV), incorporating the event study methodology. A total of 279,546 big news items were used, and 4,026 event studies were conducted. The extensive analysis of data and the segmentation of the news by tone, type of energy generation and environmental consequences helps to understand shareholders’ investment decisions. This study found that the sustainability narrative significantly impacts shareholder value; however, this narrative’s interpretation has no consensus. The sustainability news about these companies moves the stock market upwards for some shareholders, while others do the contrary. These results are observed by comparing CAAR and AV. The results found by this article are crucial for regulators to push forward an effective ecological transition. It should be legislated so that there is a common shareholders’ narrative, discouraging highly polluting investments.
Journal: Applied Economics
Pages: 3482-3494
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.2009759
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2009759
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Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3482-3494
Template-Type: ReDIF-Article 1.0
Author-Name: Youngho Kang
Author-X-Name-First: Youngho
Author-X-Name-Last: Kang
Author-Name: Unjung Whang
Author-X-Name-First: Unjung
Author-X-Name-Last: Whang
Title: Exports and firm employment: the roles of R&D and exports to affiliates
Abstract:
Firm-level data from the Korean manufacturing sector is used to quantify the impact of both the extensive and intensive margins of exporting on employment, emphasizing the role of both firm-level R&D intensity and exports to foreign affiliates. The employment effects of exporting by employment contract status, i.e. regular or non-regular employees, are also separately examined. Here, findings show that a firm’s entry into export markets has a positive effect on its employment of regular workers; further, this positive effect is apparent in firms that belong to the group with the highest level of R&D intensity. With regard to the intensive margin, findings show that the negative impact on regular employment of firms’ export share in total sales stands out in the case of exports to non-affiliates. This negative impact, related to the intensive margin, is apparent in firms belonging to the group with the lowest R&D intensity, which is in line with the results for the extensive margin. The heterogeneous effects of exports depending on both firm-level R&D intensity and exports to foreign affiliates seem to be associated with the uncertainty that is due to the volatility of overseas sales.
Journal: Applied Economics
Pages: 3426-3438
Issue: 30
Volume: 54
Year: 2022
Month: 06
X-DOI: 10.1080/00036846.2021.1990204
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990204
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Handle: RePEc:taf:applec:v:54:y:2022:i:30:p:3426-3438
Template-Type: ReDIF-Article 1.0
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Sangram Keshari Jena
Author-X-Name-First: Sangram Keshari
Author-X-Name-Last: Jena
Author-Name: Nader Trabelsi
Author-X-Name-First: Nader
Author-X-Name-Last: Trabelsi
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: Conditional transmission of global shocks to emerging stock markets: evidence from the quantile connectedness network analysis
Abstract:
The novel quantile connectedness network method is used to investigate the vulnerability of emerging stock markets to global shocks in the normal, bear and bull markets. The size of the system-wide shock for an emerging market is doubled, while its own shock is halved in the bear and bull markets relative to the normal market and vice versa. As the size of the systemic shock increases in the bear and bull markets, which leads to an increase in the bilateral shock for emerging markets. Although the dollar index emerged as a risk factor only in the normal market, oil is not a risk factor for the emerging market bloc, irrespective of the state of the market. However, the US stock market is a major risk factor for emerging markets in all kinds of market conditions, although the degree of the shock spillover is more pronounced in the normal market than in the bear and bull markets. The robustness of the vulnerability is verified in a time-varying framework. Policy implications are also discussed.
Journal: Applied Economics
Pages: 3621-3634
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2014396
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2014396
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Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3621-3634
Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Apergis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Apergis
Author-Name: Iraklis Apergis
Author-X-Name-First: Iraklis
Author-X-Name-Last: Apergis
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: A technical efficiency analysis of intra-central bank settlement mechanism in Eurozone
Abstract:
This work employs the stochastic frontier method to explore the efficiency of the TARGET2 (T2) balances mechanism across the Eurozone countries. An index is introduced to support the estimation strategy and derives meaningful results from better capturing the mechanism’s efficiency. The analysis spans the period 2005–2017 and documents the significant role or inefficiencies influencing the role of T2 from unemployment and labor costs. The absence of T2 would have endangered the viability of the Eurozone to promote trade. There is enormous country heterogeneity on efficiency and inefficiency of the error terms in our model, which indicate persistent structural issues and temporary issues; to ensure its uninterrupted operation, the enhancement of the export orientation of the manufacturing base of countries with the least efficiency (high unemployment and labor costs) is essential.
Journal: Applied Economics
Pages: 3635-3653
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2015061
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2015061
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Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3635-3653
Template-Type: ReDIF-Article 1.0
Author-Name: Yunsheng Mi
Author-X-Name-First: Yunsheng
Author-X-Name-Last: Mi
Author-Name: Xiaozhi Chen
Author-X-Name-First: Xiaozhi
Author-X-Name-Last: Chen
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Title: Evaluating the effect of China’s targeted poverty alleviation policy on credit default: a regression discontinuity approach
Abstract:
Although the literature has found that targeted poverty alleviation (TPA) policy has many positive effects, whether it has a negative impact on farmers’ credit has been under-analyzed. A regression discontinuity approach has been employed to estimate the TPA policy’s causal effects on credit default because the registered poor farmer was primarily determined by whether a farmer’s pre-policy income fell below a given poverty line. Using data from China Household Finance Survey in 2015 and 2017, we have found that China’s registered poor farmers have a higher probability of credit default. This is because registered poor farmers protected by TPA policy pursue higher risk economic activities, leading to a higher credit default. Further analysis has shown that credit default broadly occurs in married registered poor farmers. In contrast, it rarely occurs among those with high social capital. Our empirical results have suggested the Chinese government should improve the identification rules of registered poor farmers, such as subjective psychology, and strengthen the monitoring system of their participation in economic activities.
Journal: Applied Economics
Pages: 3654-3667
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016585
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016585
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Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3654-3667
Template-Type: ReDIF-Article 1.0
Author-Name: Julia E. Blasch
Author-X-Name-First: Julia E.
Author-X-Name-Last: Blasch
Author-Name: Massimo Filippini
Author-X-Name-First: Massimo
Author-X-Name-Last: Filippini
Author-Name: Nilkanth Kumar
Author-X-Name-First: Nilkanth
Author-X-Name-Last: Kumar
Author-Name: Adan L. Martinez-Cruz
Author-X-Name-First: Adan L.
Author-X-Name-Last: Martinez-Cruz
Title: Boosting the choice of energy-efficient home appliances: the effectiveness of two types of decision support
Abstract:
Consumers’ limitations in assessing the lifetime cost of household appliances may sustain the much-cited energy efficiency gap. We analyse the impact of an individual’s energy and investment literacy and two different types of decision support on the ability to identify the appliance with the lower lifetime cost in an online randomized controlled trial among two independently chosen samples of the Swiss population. In a decision task, participants choose between appliances with different lifetime cost. One treatment offers a short education programme on how to calculate the lifetime cost of an appliance – via a set of information slides. The second treatment provides access to an online lifetime-cost calculator tool. We find that pre-treatment energy and investment literacy are positively associated with the probability of identifying the appliance with the lowest lifetime cost. Evidence in this paper suggest that both decision aids boost identification of energy-efficient appliances. We discuss strategies to scale up these boosters.
Journal: Applied Economics
Pages: 3598-3620
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2014395
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2014395
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Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3598-3620
Template-Type: ReDIF-Article 1.0
Author-Name: Chenggang Wang
Author-X-Name-First: Chenggang
Author-X-Name-Last: Wang
Author-Name: Huixia Wang
Author-X-Name-First: Huixia
Author-X-Name-Last: Wang
Title: The effects of education on health and mechanisms: evidence from China
Abstract:
Existing studies that explore the effects of education on health primarily focused on developed countries, and the extent to which education impacts health is still highly debated. This paper studies the causal effects of education on health in the largest developing country-China. We use 1977 Resuming College Entrance Exam Policy as an IV and find that education has little impact on health in general, while our findings suggest that people with higher education are more likely to be diagnosed with hypertension. We also test some possible mechanisms through which education might affect health, including smoking, drinking, exercise, and cognition. Majorities of these estimations provide no evidence that education would impact health behaviors or cognitive abilities. However, we find that higher-educated men are more likely to drink more and exercise less.
Journal: Applied Economics
Pages: 3582-3597
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2014394
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2014394
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Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3582-3597
Template-Type: ReDIF-Article 1.0
Author-Name: Matias Braun
Author-X-Name-First: Matias
Author-X-Name-Last: Braun
Author-Name: Rodrigo A. Wagner
Author-X-Name-First: Rodrigo A.
Author-X-Name-Last: Wagner
Title: Are there pricing spillovers within ETFs? Evidence from emerging market corporate bonds
Abstract:
Financial theories suggest that the entry of a new security into an exchange-traded fund (ETF) could impact the price of the other constituents of that ETF. We test these various theories using data from Emerging Market corporate bonds between 2012 and 2017. We find that the inclusion of a new bond into the ETF lowers the relative price of constituent bonds that were ex-ante similar to the entrant. Additionally, we find that part of this effect tends to be transitory. These facts also hold with most alternative measures of bond similarity and proxies for returns. Moreover, the effect is stronger for less liquid bonds and when the short-run ability to absorb this entry shock is more limited. Overall, our findings suggest that part of the effect is consistent with price-pressure models.
Journal: Applied Economics
Pages: 3567-3581
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2020.1855313
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855313
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Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3567-3581
Template-Type: ReDIF-Article 1.0
Author-Name: Cassandra Copeland
Author-X-Name-First: Cassandra
Author-X-Name-Last: Copeland
Author-Name: Henry Thompson
Author-X-Name-First: Henry
Author-X-Name-Last: Thompson
Title: Factor market competition including energy input in the US economy
Abstract:
This paper examines factor market competition in the US economy with quarterly 1973–2013 data for fixed capital assets, labour force, and energy Btu input. The translog production function is estimated directly to avoid the assumption of competitive pricing in factor share equations. Error correction estimates on yearly percentage changes for the difference stationary series are consistent with Hicks neutral technology. Capital is underpaid relative to marginal product. Energy is also underpaid and has an upward trending marginal product. In stark contrast, labour is overpaid relative to downward trending marginal product. Non-Competitive pricing due to binding quantity constraints characterize these factor markets.
Journal: Applied Economics
Pages: 3557-3566
Issue: 31
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2020.1855311
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1855311
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Handle: RePEc:taf:applec:v:54:y:2022:i:31:p:3557-3566
Template-Type: ReDIF-Article 1.0
Author-Name: Rospita Odorlina P. Situmorang
Author-X-Name-First: Rospita Odorlina P.
Author-X-Name-Last: Situmorang
Author-Name: Ming Chin Tang
Author-X-Name-First: Ming Chin
Author-X-Name-Last: Tang
Author-Name: Shu Chun Chang
Author-X-Name-First: Shu Chun
Author-X-Name-Last: Chang
Title: Purchase Intention on Sustainable products: A Case study on Free-Range Eggs in Taiwan
Abstract:
Increasing of awareness on healthy and friendly environmentally products such as free-range eggs has become a concern of consumers in over the world including for Taiwanese consumers. There are many motives of free-range egg purchase, but this study only discussed four aspects, i.e. health consciousness, food safety concern, animal welfare concern, and price. This study examined the importance of those aspects and examined the relationship with purchase intention. The study was conducted on 228 Taiwanese respondents through an online survey held on November 2020 and February 2021. This study found that health consciousness was the main factor for Taiwanese consumers to choose free-range eggs followed by food safety concern, price and animal welfare concern. Health consciousness, food safety concern and the concern to animal welfare positively influenced the purchase intention, while price did not significantly influence the purchase intention. Females, the higher income level, and the respondents that cook more frequently have higher intention to buy free-range eggs, while the differences in age, educational levels, and number of family members do not influence the purchase intention.
Journal: Applied Economics
Pages: 3751-3761
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2001423
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2001423
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Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3751-3761
Template-Type: ReDIF-Article 1.0
Author-Name: Carina Goldbach
Author-X-Name-First: Carina
Author-X-Name-Last: Goldbach
Author-Name: Jörn Sickmann
Author-X-Name-First: Jörn
Author-X-Name-Last: Sickmann
Author-Name: Thomas Pitz
Author-X-Name-First: Thomas
Author-X-Name-Last: Pitz
Title: Sequential decision bias – evidence from grading exams
Abstract:
Human perception is very comparative. A misperception of random sequential processes, however, can influence the outcome of important decisions in many areas of daily life, including the evaluation of exams in higher education. We investigate this effect by using an extensive dataset of more than 20,000 examination results that is analysed on whether a student’s performance in an exam has an impact on the evaluation of the one following, e.g. whether a poor performance lets the following shine in a better light, resulting in a better-than-expected grade. We conclude that there is evidence for sequential decision biases that do not necessarily occur generally, but rather after streaks of extreme events. An even greater effect size is detected when limiting the sample to exams with a low variance in grades and to exams that were evaluated later in the exam correction sequence. Therefore, there is evidence that under certain conditions, past evaluations may impact on current evaluations of student performances. This study should raise awareness of biases in grading against the background of their importance in the assessment of students’ educational performances, the admission to consecutive study programmes and as a key metric in the evaluation of job candidates.
Journal: Applied Economics
Pages: 3727-3739
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1976390
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1976390
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Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3727-3739
Template-Type: ReDIF-Article 1.0
Author-Name: Aichun Jiang
Author-X-Name-First: Aichun
Author-X-Name-Last: Jiang
Author-Name: Chuan Chen
Author-X-Name-First: Chuan
Author-X-Name-Last: Chen
Author-Name: Yibin Ao
Author-X-Name-First: Yibin
Author-X-Name-Last: Ao
Author-Name: Wenmei Zhou
Author-X-Name-First: Wenmei
Author-X-Name-Last: Zhou
Title: Measuring the Inclusive growth of rural areas in China
Abstract:
The stagnation of the development, poverty, and environmental deterioration are the three major problems of the world. China’s poverty problem is centred on rural areas. Inclusive growth was first proposed by the Asian Development Bank in 2007. Many scholars investigated the connotation and measurement of such growth. However, the attention devoted to the inclusive growth of rural areas in China is still lacking. The objective of this study is to construct an indicator system that measures the inclusive growth of these areas from 2004 to 2017 in four aspects, namely, economic growth, social equity, environmental sustainability, and infrastructure. The entropy weight and TOPSIS methods are used to evaluate the inclusive growth of rural areas in China. Results show that the inclusive growth index in rural China is steadily rising, and infrastructure has a significant effect on inclusive growth.
Journal: Applied Economics
Pages: 3695-3708
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1923640
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1923640
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Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3695-3708
Template-Type: ReDIF-Article 1.0
Author-Name: Aidong Zhao
Author-X-Name-First: Aidong
Author-X-Name-Last: Zhao
Author-Name: Jinsheng Huang
Author-X-Name-First: Jinsheng
Author-X-Name-Last: Huang
Author-Name: Huub Ploegmakers
Author-X-Name-First: Huub
Author-X-Name-Last: Ploegmakers
Author-Name: Erwin van der Krabben
Author-X-Name-First: Erwin
Author-X-Name-Last: van der Krabben
Author-Name: Xianlei Ma
Author-X-Name-First: Xianlei
Author-X-Name-Last: Ma
Title: The impact of land price regulation on land-use intensity: evidence from Chinese minimum land price regulation policy
Abstract:
The minimum land price (MLP) regulation that China introduced in 2007 provides a quasi-experiment to investigate how government intervention in the land market influences the intensity with which industrial land is used, which has received limited attention in existing literature. Using a difference-in-difference strategy, our estimates show that an exogenous increase in the price of industrial land induced by the MLP regulation’s introduction significantly increased industrial land-use intensity by putting more capital on same amount of land. The findings from this paper therefore suggest that MLP regulation as an incentive-based policy instrument is effective for promoting land-use intensity.
Journal: Applied Economics
Pages: 3668-3677
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1971620
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1971620
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Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3668-3677
Template-Type: ReDIF-Article 1.0
Author-Name: Marialisa Mazzocchitti
Author-X-Name-First: Marialisa
Author-X-Name-Last: Mazzocchitti
Author-Name: Chrisovalantis Malesios
Author-X-Name-First: Chrisovalantis
Author-X-Name-Last: Malesios
Author-Name: Alessandro Sarra
Author-X-Name-First: Alessandro
Author-X-Name-Last: Sarra
Title: Spatio-temporal modelling of municipal waste management systems’ meta-efficiency scores
Abstract:
This paper describes an approach to measure the intensity and the territorial dispersion of spatial proximity effects, which affect efficiency scores obtained through data envelopment analysis in the field of municipal waste management systems (MWMSs). In particular, we show that these analyses cannot be conducted by relying on efficiency scores that are not comparable over time and treated as cross-sectional data, as is done in most previous studies. Instead, the use of panel data is a key element to obtain reliable results. We used a meta-frontier approach to obtain meta-efficiency scores comparable over time and a modified conditional autoregressive (CAR) model to provide an estimation of the intensity of spatial proximity effects. This approach was applied to data on 277 MWMSs located in the Italian region of Abruzzo. Our method provides useful information for policymakers. In particular, the areas in which stagnating and suboptimal performance can be expected over time can be identified by plotting over the regional territory the posterior medians of the random effects obtained by the spatial component of the CAR model together with the highly efficient municipalities. To improve efficiency, these areas require an active intervention by levels of government higher than the municipal level.
Journal: Applied Economics
Pages: 3709-3726
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1939855
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1939855
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Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3709-3726
Template-Type: ReDIF-Article 1.0
Author-Name: Tianyi Wang
Author-X-Name-First: Tianyi
Author-X-Name-Last: Wang
Author-Name: Sicong Cheng
Author-X-Name-First: Sicong
Author-X-Name-Last: Cheng
Author-Name: Fangsheng Yin
Author-X-Name-First: Fangsheng
Author-X-Name-Last: Yin
Author-Name: Mei Yu
Author-X-Name-First: Mei
Author-X-Name-Last: Yu
Title: Directly pricing VIX futures: the role of dynamic volatility and jump intensity
Abstract:
We extend the direct pricing framework and propose a new generalized model for VIX futures by adding the time-varying component volatility as well as jump intensity to the logarithm of underlying VIX series. We also switch to the normal jump component on which the simpler and faster analytical filter can be applied. Compared with the nested benchmark models, these extensions are supported by significant pricing performance improvements both in- and out-of-sample. In particular, our generalized model can reduce the pricing errors substantially in the high VIX level period and for long maturity contracts. Our research highlights the importance of those newly added features of the VIX series when pricing VIX derivatives.
Journal: Applied Economics
Pages: 3678-3694
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016592
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016592
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Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3678-3694
Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: The benefits of not living in a nursing home
Abstract:
We identify and value four categories of benefits of not living in a nursing home (NH). The four categories relate to the two components of a Quality Adjusted Life Year (QALY), which is the outcome effect for this evaluation. For each QALY component, the quality of a life year foregone and the loss of a life, NHs have a direct effect and an indirect effect as NHs increase dementia symptoms. Estimates of the QALY components are obtained from two fixed effects regression equations applied to a large national data set with quality of life and dementia symptoms as dependent variables. Valuation of the QALY effects is based on the value of a statistical life year literature. Because every category of QALY effect produces negative benefits, a fifth category of foregone benefits is the savings from not incurring expenses for a NH. The total losses are large, equal to $1.93 trillion.
Journal: Applied Economics
Pages: 3740-3750
Issue: 32
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1983141
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1983141
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Handle: RePEc:taf:applec:v:54:y:2022:i:32:p:3740-3750
Template-Type: ReDIF-Article 1.0
Author-Name: Feipeng Zhang
Author-X-Name-First: Feipeng
Author-X-Name-Last: Zhang
Author-Name: Yun Hong
Author-X-Name-First: Yun
Author-X-Name-Last: Hong
Author-Name: Yanhui Jiang
Author-X-Name-First: Yanhui
Author-X-Name-Last: Jiang
Author-Name: Jiayi Yu
Author-X-Name-First: Jiayi
Author-X-Name-Last: Yu
Title: Impact of national media reporting concerning COVID-19 on stock market in China: empirical evidence from a quantile regression
Abstract:
Using daily data from 20 January 2020 to 31 July 2020, we investigate the impact of national media crisis communication on stock market returns in China by employing the quantile regression method. By using Xinwen Lianbo (新闻联播) as a proxy for national media, we introduce two variables that can capture Xinwen Lianbo’s COVID-19 attention and tone. The results show a significant positive/negative impact of the media’s COVID-19 focus on contemporaneous stock market returns at high/low quantiles of daily returns. The impact of media’s tone toward COVID-19’s impact on contemporaneous daily stock market returns is also negative at low quantiles of daily returns. Xinwen Lianbo’s impact is mainly concentrated in the more contemporaneous overnight return rather than the intraday return. More serious cases of COVID-19 will aggravate (weaken) the impact of the national media’s tone at the lower (higher) quantile of overnight return. Finally, we explain our results by referring to psychology and cognition theory, including mood priming theory, mood as information theory and mood effects on the processing style model.
Journal: Applied Economics
Pages: 3861-3881
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016591
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016591
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Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3861-3881
Template-Type: ReDIF-Article 1.0
Author-Name: Aakanksha Shrawan
Author-X-Name-First: Aakanksha
Author-X-Name-Last: Shrawan
Author-Name: Amlendu Dubey
Author-X-Name-First: Amlendu
Author-X-Name-Last: Dubey
Title: A reassessment of the relationship between services and economic growth in low-income and lower-middle income countries: a non-linear approach
Abstract:
We test whether the service sector can contribute to economic growth in low-income and lower-middle income countries despite the likely presence of Baumol’s ‘cost disease’. We employ the non-linear auto-regressive distributed lag method, which investigates whether growth responds differently to a positive and negative change in the service sector’s share. By employing a sample of 62 countries from 1970–2019, we find that an increase in the sector’s share reduces short-run growth implying cost disease. In the long run, however, the results show that an increase in the sector’s share positively contributes to economic growth. Thus, the results support policy reforms that may strengthen service sector in these countries.
Journal: Applied Economics
Pages: 3795-3810
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1990847
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990847
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Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3795-3810
Template-Type: ReDIF-Article 1.0
Author-Name: Kei Sakata
Author-X-Name-First: Kei
Author-X-Name-Last: Sakata
Author-Name: Colin McKenzie
Author-X-Name-First: Colin
Author-X-Name-Last: McKenzie
Author-Name: Shinya Kajitani
Author-X-Name-First: Shinya
Author-X-Name-Last: Kajitani
Title: Informal care and savings
Abstract:
Using panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, this paper examines to what extent informal care provided by couples and single individuals affects their household savings. This paper is one of the first attempts to examine the relationship between informal care and savings. There are both negative and positive effects of informal care on wealth accumulation, but we do not know which of these effects dominate. We estimate quantile regression models and find that informal care provision has limited negative impacts on changes in household wealth formation. There was no effect of caring on wealth formation for the lower quantile and the negative effects are limited to the mid to high quantile groups.
Journal: Applied Economics
Pages: 3762-3776
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1980489
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980489
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Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3762-3776
Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Ming Chang
Author-X-Name-First: Yang-Ming
Author-X-Name-Last: Chang
Author-Name: Manaf Sellak
Author-X-Name-First: Manaf
Author-X-Name-Last: Sellak
Title: A theory of competing interventions by external powers in intrastate conflicts: implications for war and armed peace
Abstract:
This paper presents a game-theoretic model of competing interventions in civil conflict. We analyze the conflict between an incumbent government (as defender) and its rebel group (as attacker) when the two parties receive military support from different external powers. In contrast to the traditional analysis of non-competing or biased intervention by a single third party, we first show how competition in external powers can strategically alter the outcome of the two-party conflict and then identify the conditions under which the defender launches an effective strategy to deter the attacker. We find that (i) when the stakes that the competing external powers have in their respective supported parties are equivalent, the amounts of military support endogenously offered by the external interveners are comparable. The government’s deterrence strategy is ineffective, and the fighting persists despite the warring parties’ valuations for political dominance being asymmetric. (ii) when the external power that supports the government has a higher stake than the competing external power that supports the rebel group, the government’s arming allocation can deter the rebellion. (iii) These results have implications for multi-power interventions so that the equilibrium outcome can be ‘armed peace’ or a prolonged war as observed in civil conflicts.
Journal: Applied Economics
Pages: 3811-3822
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016588
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016588
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Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3811-3822
Template-Type: ReDIF-Article 1.0
Author-Name: Abdoul‐Akim Wandaogo
Author-X-Name-First: Abdoul‐Akim
Author-X-Name-Last: Wandaogo
Title: Does digitalization improve government effectiveness? Evidence from developing and developed countries
Abstract:
This study aims to analyze the effect of digitalization on government effectiveness in developing and developed countries. It uses a panel methodology with data from 138 countries between 2006 and 2016. The results suggest that a government’s use of information and communication technologies (ICT) improves its effectiveness in both developing and developed countries. However, this effect is stronger in developed than in developing countries. Moreover, we find that the effect of aggregate ICT use by individuals, businesses, and government on overall government effectiveness is greater than that of individual use by each individually. The results are robust after several tests (reverse causality, dynamic effect, sensitivity analysis, heterogeneities, and alternative measurements). These results highlight the fact that governments could fully benefit from digitalization by adopting policies that promote access to and use of ICT at all levels of the economy, that is, the government itself, businesses, and individuals.
Journal: Applied Economics
Pages: 3840-3860
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016590
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016590
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Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3840-3860
Template-Type: ReDIF-Article 1.0
Author-Name: Maimouna Gaye
Author-X-Name-First: Maimouna
Author-X-Name-Last: Gaye
Title: Job satisfaction: towards internalizing the feeling of inequality between men and women
Abstract:
The more pronounced job satisfaction among women is generally observed despite their less favorable work situation compared to men. However, regression analysis alone in a sample of non-comparable men and women may be subject to model misspecification. Our work uses an innovative matching procedure, Coarsened Exact Matching (CEM), to address this issue and analyze the reasons for the differential in job satisfaction between men and women with the same characteristics. Data from the Sixth European Working Conditions Survey are considered including five measures of satisfaction with career development prospects taken as a new measure. The results show that women are more satisfied with job security, while they seem less satisfied with their career development prospects. A similar level of satisfaction is observed between men and women with regard to social relations, overall satisfaction and salary. Exceptionally, the youngest women, or those with higher education, or employed at a higher hierarchical level, or working in male-dominated sectors, expressed levels of satisfaction that were the opposite of the other women. This is likely due to the fact that these women align their job expectations with those of their male counterparts.
Journal: Applied Economics
Pages: 3823-3839
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016589
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016589
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Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3823-3839
Template-Type: ReDIF-Article 1.0
Author-Name: Cesare A.F. Riillo
Author-X-Name-First: Cesare A.F.
Author-X-Name-Last: Riillo
Author-Name: Ivana Mijatovic
Author-X-Name-First: Ivana
Author-X-Name-Last: Mijatovic
Author-Name: Henk J. de Vries
Author-X-Name-First: Henk J.
Author-X-Name-Last: de Vries
Title: Certification to compensate gender prejudice – Analysis on impact of management system certification on export
Abstract:
Management system certification signals that the organization meets international standards, which provides a certain confidence in the company. This confidence is in particular needed for exporting companies in developing countries. Because the business world is dominated by men, female leadership might be another reason to have less confidence in a company. Women-led companies may therefore benefit more from certification. Therefore, this study empirically tests the impact of certification on export, and the moderating effect of female leadership. We use data from enterprise surveys conducted by the World Bank in 2013 that include 4111 firms from 25 Central and Eastern European countries in transition. We implement a recursive bivariate probit model and an extensive sensitivity analysis to account for endogeneity issues. Results confirm that certification and export are positively correlated. Firms managed by females benefit more from certification based on international standards than firms managed by men, especially in the service sector. This suggests that certification compensates for the possibly negative connotations of female leadership. Female managers may consider implementing a management system and get it certified, resulting in a competitive advantage in export markets. Our findings provide food for thought for purchase managers – are they free from prejudice?
Journal: Applied Economics
Pages: 3777-3794
Issue: 33
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.1990842
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1990842
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Handle: RePEc:taf:applec:v:54:y:2022:i:33:p:3777-3794
Template-Type: ReDIF-Article 1.0
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Eduardo Dacillo Roca
Author-X-Name-First: Eduardo Dacillo
Author-X-Name-Last: Roca
Title: China’s geopolitical risk and international financial markets: evidence from Canada
Abstract:
Given the high level of economic and financial globalization, geopolitical tensions can disrupt international trade and negatively influence financial markets. China, a global economic power, has been at the center stage of recent geopolitical tensions with widespread economic implications. We empirically investigate the effect of China’s geopolitical risk on Canada’s equity markets. The results show a persistent impact on market returns and volatility, most prominently on the resources and energy sectors. Even though China plays a smaller role than the US as a trading partner, China’s geopolitical risk significantly affects the Canadian stock market and its component sectors. Our results, therefore, support the need for a constructive approach toward alleviating global geopolitical tensions and for the development of geopolitical risk hedging strategies such as insurance and investment in commodities at the country and investor levels.
Journal: Applied Economics
Pages: 3953-3971
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2019185
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2019185
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Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3953-3971
Template-Type: ReDIF-Article 1.0
Author-Name: Juhee Hwang
Author-X-Name-First: Juhee
Author-X-Name-Last: Hwang
Title: Corporate social responsibility and non-GAAP reporting
Abstract:
This study examines the relationship between a firm’s corporate social responsibility (CSR) performance and non-GAAP earnings disclosure. I find that firms with good CSR performance (i.e. CSR firms) are more likely to disclose non-GAAP earnings than firms with poor CSR performance (i.e. non-CSR firms). More importantly, I find that CSR firms provide more informative non-GAAP earnings than non-CSR firms. Furthermore, CSR firms’ decisions to disclose non-GAAP earnings are less affected by the incentives to meet earnings benchmarks or constraints on other earnings management tools. These findings are consistent with the notion that CSR firms communicate with stakeholders about their sustainable earnings through non-GAAP reporting.
Journal: Applied Economics
Pages: 3883-3902
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2017400
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2017400
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Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3883-3902
Template-Type: ReDIF-Article 1.0
Author-Name: Felipe Vasquez-Lavin
Author-X-Name-First: Felipe
Author-X-Name-Last: Vasquez-Lavin
Author-Name: Luna Bratti
Author-X-Name-First: Luna
Author-X-Name-Last: Bratti
Author-Name: Sergio Orrego
Author-X-Name-First: Sergio
Author-X-Name-Last: Orrego
Author-Name: Manuel Barrientos
Author-X-Name-First: Manuel
Author-X-Name-Last: Barrientos
Title: Assessing the use of pseudo-panels to estimate the value of statistical life
Abstract:
In this paper, we estimate the Value of Statistical Life (VSL) for Chile, Colombia, and the United States using a hedonic wage model and a pseudo-panel approach. The VSL is a major component of the cost-benefit analysis of many policies, including public health, transportation safety, and environmental regulation. Using pseudo-panels, also known as synthetic cohort data, to estimate the VSL is relevant for low- and middle-income countries because many do not have panel data but do have repeated cross-sectional information. We conclude that the pseudo-panel approach is a suitable alternative for estimating the VSL when panel data is unavailable.
Journal: Applied Economics
Pages: 3972-3988
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2019186
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2019186
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Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3972-3988
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Ayadi
Author-X-Name-First: Ahmed
Author-X-Name-Last: Ayadi
Title: BREXIT: equity market contagion and transmission channels
Abstract:
This paper investigates the transmission of shocks during the period of the withdrawal of the United Kingdom from the European Union (BREXIT) across twenty-two equity markets. We use an augmented multifactor model to detect the transmission of contagion effects from the United States and Western Europe to Brazil, Russia, India, China and South Africa, commonly known as ‘the BRICS’ countries, during BREXIT, i.e. the exit of Great Britain from the European Union. Our model captures the unexpected returns and disentangles the simple correlations due to fundamentals and contagion. Our results show that crisis did not have the same effects on the BRICS countries in terms of contamination. More precisely, evidence of fundamental contagion is documented between stock markets. Moreover, Russia was the most contaminated market, and China was the least affected market. Furthermore, the findings prove that the stock market contagion between these countries was transmitted by some channels that have been omitted from the theory.
Journal: Applied Economics
Pages: 3933-3952
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2018128
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2018128
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Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3933-3952
Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Miyazaki
Author-X-Name-First: Takeshi
Author-X-Name-Last: Miyazaki
Title: Does ethnic diversity affect public goods provision? Evidence from boundary reform of local governments
Abstract:
This study explores how ethnic fractionalization affects the provision of public goods using Japanese city data, and attempts to address potential endogeneity by using boundary reforms of local governments. The results show that an increase in ethnic fractionalization has a significantly negative effect on spending on productive public goods (roads and bridges) and positive effects on spending on nonproductive public goods (sanitation and trash collection). However, ethnic fractionalization is unrelated to the provision of other local public goods such as education and welfare.
Journal: Applied Economics
Pages: 3903-3923
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2017401
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2017401
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Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3903-3923
Template-Type: ReDIF-Article 1.0
Author-Name: Semei Coronado
Author-X-Name-First: Semei
Author-X-Name-Last: Coronado
Author-Name: Jose N. Martinez
Author-X-Name-First: Jose N.
Author-X-Name-Last: Martinez
Author-Name: Rafael Romero-Meza
Author-X-Name-First: Rafael
Author-X-Name-Last: Romero-Meza
Title: Time-varying multivariate causality among infectious disease pandemic and emerging financial markets: the case of the Latin American stock and exchange markets
Abstract:
The purpose of this article is to study the unidirectional causality from the Infectious Disease Equity Market Volatility Tracker (EMV-ID), towards the volatility of five of the most important Latin American stock and Exchange markets. For this, volatility is captured through the DCC-GARCH t-Copula method. In addition, the time-varying Granger multivariate causality test (TV-GC) and the classical Granger causality test (GC) are applied. It is found that, with both methodologies, EMV-ID causes both series, which highlights the importance of having this new indicator for the analysis of the different agents involved in financial markets, among them, regulators, companies and traders in particular. Our results are consistent with the evidence of other research findings about the predictive power of the EMV-ID index on oil price volatility and some European equity markets, and the positive link between EMV-ID and the time-varying of return connectedness across gold, crude oil, world equities, currencies and bonds.
Journal: Applied Economics
Pages: 3924-3932
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2018127
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2018127
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Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3924-3932
Template-Type: ReDIF-Article 1.0
Author-Name: Hao Gao
Author-X-Name-First: Hao
Author-X-Name-Last: Gao
Author-Name: Jing He
Author-X-Name-First: Jing
Author-X-Name-Last: He
Author-Name: Yong Li
Author-X-Name-First: Yong
Author-X-Name-Last: Li
Title: Media spotlight, corporate sustainability and the cost of debt
Abstract:
In this study, we examine the effect of media spotlight of corporate environmental, social, and governance (ESG) performance on corporate debt financing. We use the most influential media firm’s rankings of corporate ESG performance from 2009 to 2017 as a proxy of media spotlight. Positive media ESG spotlight significantly reduces firms’ cost of debt through enhancing reputation in supply chains, reducing financial risk and increasing corporate transparency. Media ESG spotlight plays a more important role for firms with poor corporate governance and firms located in provinces with more serious pollution.
Journal: Applied Economics
Pages: 3989-4005
Issue: 34
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2020710
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020710
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Handle: RePEc:taf:applec:v:54:y:2022:i:34:p:3989-4005
Template-Type: ReDIF-Article 1.0
Author-Name: Marta Arespa
Author-X-Name-First: Marta
Author-X-Name-Last: Arespa
Author-Name: Juan González-Alegre
Author-X-Name-First: Juan
Author-X-Name-Last: González-Alegre
Title: The determinants of inflation volatility: a panel data analysis for US-product categories
Abstract:
Some macroeconomic dimensions like the economic business cycle, the exchange rate movements when the degree of country openness is significant, or the level of inflation are often considered to explain measured-inflation dynamics. However, inflation volatility may also be affected by statistical agencies methodological changes. This paper explores both potential explanations in a panel data for 100 United States CPI-U subcategories. Using both unconditional and conditional variances, we find that crucial changes in how agencies consider quality adjustment in products, together with the macroeconomic variables help to understand CPI volatility over time, both in the short-run and in the long-run.
Journal: Applied Economics
Pages: 4060-4083
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2020714
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020714
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Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4060-4083
Template-Type: ReDIF-Article 1.0
Author-Name: Ivo J. M. Arnold
Author-X-Name-First: Ivo J. M.
Author-X-Name-Last: Arnold
Title: Monetary overhang in times of covid: evidence from the euro area
Abstract:
This paper investigates the determinants of the monetary overhang in the euro area since the outbreak of covid-19. To this end, we estimate a long-run panel money demand function for 18 euro area countries over the period from 2003 to 2019. We calculate the monetary overhang since 2020 as the difference between the actual money stock and the value implied by the money demand function. Making use of cross-sectional heterogeneity and time variation in government responses to covid-19, we relate the monetary overhang to covid-19 response indicators, as well as to confidence indicators. We find that the monetary overhang is significantly related to the level of economic support, the stringency of the containment policy and the economic sentiment indicator.
Journal: Applied Economics
Pages: 4030-4042
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2020711
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020711
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Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4030-4042
Template-Type: ReDIF-Article 1.0
Author-Name: Difei Ouyang
Author-X-Name-First: Difei
Author-X-Name-Last: Ouyang
Title: State-owned banks in credit stimulus: evidence from China
Abstract:
This paper studies the role of the four largest, traditional, state-owned banks (Big Four SOBs) during China’s nationwide credit stimulus years (2009—10). We find that cities with a larger share of branches owned by the Big Four SOBs experienced larger local lending growth in credit stimulus. While the industrial/tradable sector was hit hardest by the global financial crisis, Big Four SOBs only fostered the expansion of the tertiary sector, which further led to temporary GDP growth. Consistently, we find that listed companies in cities with greater Big Four branch density also received more loan funding and invested more, yet their profitability showed no improvement in both the short and long run.
Journal: Applied Economics
Pages: 4084-4100
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2021135
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2021135
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Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4084-4100
Template-Type: ReDIF-Article 1.0
Author-Name: Lijia Mo
Author-X-Name-First: Lijia
Author-X-Name-Last: Mo
Author-Name: James Yae
Author-X-Name-First: James
Author-X-Name-Last: Yae
Title: Lending Club meets Zillow: local housing prices and default risk of peer-to-peer loans
Abstract:
We investigate the role of local housing prices in the default of peer-to-peer (P2P) loans. From the data of Lending Club and Zillow, we find that borrowers, who reside at a ZIP code where median home price is one standard deviation higher than the cross-sectional average, show a 0.75% lower default probability, given the loan interest rate into consideration. However, this effect of ZIP-code-level home price on the default probability is three times stronger for homeowner borrowers with mortgages: the marginal probability jumps from 0.75% to 2.13%. Higher home price improves a homeowner borrower’s credit and wealth, and such an effect is highly leveraged by a mortgage, ceteris paribus. This channel is an interaction between borrower-specific and local information, which is distinct from the well-known socio-economic channel. Our empirical results provide an important implication on the reputation or feedback mechanisms in P2P loan markets.
Journal: Applied Economics
Pages: 4101-4112
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2022089
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022089
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Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4101-4112
Template-Type: ReDIF-Article 1.0
Author-Name: Ernest Boffy-Ramirez
Author-X-Name-First: Ernest
Author-X-Name-Last: Boffy-Ramirez
Title: Push or Pull? Measuring the labor supply response to the minimum wage using an individual-level panel
Abstract:
For individuals in low-wage labour markets, an increase in the minimum wage can theoretically pull them into or push them out of the labour force. If increases raise expected wages beyond reservation wages, marginal individuals could enter the labour force and begin searching for employment. If increases lower expected wages, marginal individuals already in the labour force could exit. Leveraging revised individual identifiers in the U.S. Current Population Survey, this research estimates the contemporaneous effects of minimum wage increases on labour force participation. The use of within-person variation, short individual panels, and flexible controls for time create an empirical strategy that mitigates potential biases from unobserved constant individual-level heterogeneity and time-varying factors. This research finds that minimum wage changes tend to impact the youngest individuals, but there is substantial heterogeneity in responses by age, race/ethnicity, and sex. There is stronger evidence of pull effects amongst young white men and Latinos, and weaker evidence amongst young Black women and older Latinas. Weak evidence of push effects is observed amongst younger white women, younger Latinos, and older Latinas. This research highlights heterogeneous labour force participation responses to further inform our understanding of search behaviour and labour market churn.
Journal: Applied Economics
Pages: 4043-4059
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2020713
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2020713
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Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4043-4059
Template-Type: ReDIF-Article 1.0
Author-Name: T. Agasisti
Author-X-Name-First: T.
Author-X-Name-Last: Agasisti
Author-Name: M. Cannistrà
Author-X-Name-First: M.
Author-X-Name-Last: Cannistrà
Author-Name: M. Soncin
Author-X-Name-First: M.
Author-X-Name-Last: Soncin
Author-Name: D. Marazzina
Author-X-Name-First: D.
Author-X-Name-Last: Marazzina
Title: Financial Education during COVID-19 - Assessing the effectiveness of an online programme in a high school
Abstract:
Acknowledging the importance of financial literacy in modern societies, schools are implementing different activities to teach basic concepts to young pupils. This work aims at investigating the effectiveness of an intervention of financial education in an Italian high school, conducted during the period of school closure due to COVID-19. Through a rigorous experimental design based on a Randomized Controlled Trial, this study analyses the effects of attending a one-month financial education course, provided through an online classroom mode. The empirical analysis combines econometric techniques for policy evaluation and machine learning algorithms. The intervention succeeded in substantially improving students’ financial knowledge, suggesting a potential role of digital learning for scaling up financial education initiatives.
Journal: Applied Economics
Pages: 4006-4029
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2016586
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2016586
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Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4006-4029
Template-Type: ReDIF-Article 1.0
Author-Name: Afef Kesraoui
Author-X-Name-First: Afef
Author-X-Name-Last: Kesraoui
Author-Name: Mohamed Lachaab
Author-X-Name-First: Mohamed
Author-X-Name-Last: Lachaab
Author-Name: Abdelwahed Omri
Author-X-Name-First: Abdelwahed
Author-X-Name-Last: Omri
Title: The impact of credit risk and liquidity risk on bank margins during economic fluctuations: evidence from MENA countries with a dual banking system
Abstract:
This study investigates the simultaneous impact of the major sources of bank default, namely credit risk and liquidity risk on price-cost margins during economic fluctuations in the MENA countries with a dual banking system. We use an annually balanced data set including 30 conventional banks and 14 Islamic banks from 9 countries covering the period 2004–2020. Our findings highlight the importance of the two risk factors on determining banks’ cost of intermediation. The most interesting result is that their effects on bank margins are sensitive to economic fluctuations. More specifically, both risk factors have more significant effect on price-cost margins during good economic times. One important implication of our findings is that the authorities and policymakers should pay more attention to liquidity and risks during booms.
Journal: Applied Economics
Pages: 4113-4130
Issue: 35
Volume: 54
Year: 2022
Month: 07
X-DOI: 10.1080/00036846.2021.2022090
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022090
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Handle: RePEc:taf:applec:v:54:y:2022:i:35:p:4113-4130
Template-Type: ReDIF-Article 1.0
Author-Name: Amar Iqbal Anwar
Author-X-Name-First: Amar Iqbal
Author-X-Name-Last: Anwar
Author-Name: Colin F. Mang
Author-X-Name-First: Colin F.
Author-X-Name-Last: Mang
Title: Do remittances cause Dutch Disease? A meta-analytic review
Abstract:
This is the first meta-study to analyze the effect size of remittances on the real exchange rate (RER). Using 426 estimates from 67 studies, we found that remittances appreciate RER; however, the effect size differs across countries. Compared to global estimates, the mean effect of remittances on RER is significantly larger for East Asia and the Pacific, whereas the same nexus is found to be significantly smaller for Latin America and the Caribbean. Furthermore, the synthesized effect of remittances on RER is found to be significantly positive for lower-middle-income countries. Our empirical examination shows that publication selection bias is less likely in the literature. We found a genuine effect of remittances on RER appreciation. This study also provides policy recommendations and presents suggestions for future research in the field.
Journal: Applied Economics
Pages: 4131-4153
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.2022091
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022091
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Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4131-4153
Template-Type: ReDIF-Article 1.0
Author-Name: Bochao Zhang
Author-X-Name-First: Bochao
Author-X-Name-Last: Zhang
Author-Name: Baizhen Zhang
Author-X-Name-First: Baizhen
Author-X-Name-Last: Zhang
Author-Name: Junpeng Di
Author-X-Name-First: Junpeng
Author-X-Name-Last: Di
Author-Name: Qing Han
Author-X-Name-First: Qing
Author-X-Name-Last: Han
Title: The strategic behavior of Chinese enterprises using R&D subsidies: game model and empirical research
Abstract:
This paper constructs a game model of the strategic behavior of enterprises using R&D subsidies and government supervision and decision-making under the condition of information asymmetry. The derivation of the model shows that when a company and the government engage in a short-term single game, the more abundant the company’s own funds and the higher the rate of return of non-subsidized projects, the greater the possibility that the company will embezzle R&D subsidies with higher the embezzlement ratio. The simultaneous implementation of R&D subsidy policies and tax incentives will weaken the government’s enthusiasm for the supervision of enterprises and increase the possibility of enterprises embezzling R&D subsidies. For the empirical analysis, based on the data of industrial enterprises, the propensity score matching method is used to construct the proxy variables of corporate appropriation and non-innovative project profitability, When the research hypothesis from the theoretical part of this paper is tested, it is found that the profit rate of self-owned funds and non-innovative projects is the main factor affecting whether a company will embezzle subsidies. The results show an inverted U-shaped relationship, indicating that the greater the possibility of enterprises embezzling R&D subsidies, the more restrained the R&D investment of enterprises will be.
Journal: Applied Economics
Pages: 4187-4202
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.2023089
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2023089
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Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4187-4202
Template-Type: ReDIF-Article 1.0
Author-Name: Laura Beaudin
Author-X-Name-First: Laura
Author-X-Name-Last: Beaudin
Author-Name: Aziz N. Berdiev
Author-X-Name-First: Aziz N.
Author-X-Name-Last: Berdiev
Title: The cost of winning: Does athletic expenditure impact the probability that teams advance to the NCAA Division I Basketball Tournament? A comparison of men’s and women’s outcomes
Abstract:
We estimate the relationship between Division I NCAA basketball program expenditure and team success. Results indicate that increases in expenditure are significantly associated with increases in the probability that teams advance to the end-of-season tournament. However, an increase in expenditure impacts teams differently across the division. Specifically, those teams which spend the least on their basketball programs have the most to gain. Results also suggest that increases in team expenditure impact women’s teams more than men’s teams. Given that the women’s league is less competitive, these results might imply that a more balanced expenditure could lead to a more competitive league.
Journal: Applied Economics
Pages: 4154-4169
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.2022092
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Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4154-4169
Template-Type: ReDIF-Article 1.0
Author-Name: Haejung Na
Author-X-Name-First: Haejung
Author-X-Name-Last: Na
Author-Name: Soonho Kim
Author-X-Name-First: Soonho
Author-X-Name-Last: Kim
Title: The impact of globalization and the legal system on stock market quality
Abstract:
This study examines how globalization affects stock market quality, whether investor protection serves as a channel in this relationship, and how the channel effect varies depending on the legal system. Our empirical analysis confirms that there is a positive causal relationship between globalization and market quality. Also, since we find that globalization induces stronger investor protection, we disentangle the component of investor protection predicted by globalization. Our analysis shows that the globalization-induced component of investor protection has a significantly positive effect on market quality, which demonstrates the role of investor protection as a channel. Finally, we show that these relationships among globalization, investor protection, and market quality are present in civil law countries but not in common law countries. This illustrates that globalization enhances financial market quality via a stronger ability to effect institutional change and investor protection in civil law countries.
Journal: Applied Economics
Pages: 4203-4212
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2026869
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Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4203-4212
Template-Type: ReDIF-Article 1.0
Author-Name: Xiuzhen Shi
Author-X-Name-First: Xiuzhen
Author-X-Name-Last: Shi
Author-Name: Zekai He
Author-X-Name-First: Zekai
Author-X-Name-Last: He
Title: Housing demolition and financial market investment: evidence from Chinese household data
Abstract:
This paper estimates the impact of housing demolitions on households’ investment behaviour in financial markets in China using a large microeconomic data set. This study provides new evidence on the effect of demolitions on families’ investment behaviour from a natural experiment created by housing demolition and compensation events. We find that housing demolitions significantly increase households’ participation in risky financial markets. Households’ portfolio choices in responses to demolitions vary substantially across household characteristics. The affected households in urban areas and those with cash compensation are more likely to participate in risky asset markets, while the affected low-income families decrease investment in financial markets. To understand the underlying mechanisms, we propose a framework of how housing demolitions increase households’ financial asset allocation. Our results indicate that changes in precautionary motive for savings and risk preference hold substantial importance.
Journal: Applied Economics
Pages: 4213-4226
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2027332
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2027332
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Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4213-4226
Template-Type: ReDIF-Article 1.0
Author-Name: Zidong An
Author-X-Name-First: Zidong
Author-X-Name-Last: An
Author-Name: John Bluedorn
Author-X-Name-First: John
Author-X-Name-Last: Bluedorn
Author-Name: Gabriele Ciminelli
Author-X-Name-First: Gabriele
Author-X-Name-Last: Ciminelli
Title: Okun’s Law, development, and demographics: differences in the cyclical sensitivities of unemployment across economy and worker groups
Abstract:
The negative and stable relationship between an economy’s aggregate demand conditions and overall unemployment is well-documented. We show that there is a large degree of heterogeneity in the cyclical sensitivities of unemployment across worker and economy groups. First, unemployment is more than twice as sensitive to aggregate demand in advanced as in emerging market and developing economies. Second, youth’s unemployment is twice as sensitive as that of adults’. Third, women’s unemployment is significantly less sensitive to demand than men’s in advanced economies. We also present evidence that the cyclical sensitivity of unemployment during the 2020 COVID-19 recession decreased in advanced economies, but not emerging market and developing economies. Together, these findings point to the highly unequal impacts of the business cycle across worker and economy groups.
Journal: Applied Economics
Pages: 4227-4239
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2027333
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2027333
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Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4227-4239
Template-Type: ReDIF-Article 1.0
Author-Name: Ling Guo
Author-X-Name-First: Ling
Author-X-Name-Last: Guo
Author-Name: Xiaoni Jiang
Author-X-Name-First: Xiaoni
Author-X-Name-Last: Jiang
Title: Decentralization of environmental management and enterprises’ environmental technology innovation: evidence from China
Abstract:
We construct an environmental decentralization index and use spatial econometric modeling to test the government’s role in promoting environmental technology innovation at the enterprise level. The results show that a moderate increase in the degree of environmental decentralization is conducive to promoting local enterprises’ environmental innovation and avoiding excessive distortions caused by externalities. Further investigation reveals that the effect is more pronounced when local tax competition is taken into account. However, administrative decentralization and supervision decentralization have different effects on enterprises’ environmental innovation. An increase in administrative decentralization has a negative impact on enterprise innovation, and environmental supervision should be more focused on the central government, which can help avoid excessive distortion caused by externalities. Our analysis is of certain reference value for understanding the influence of rational allocation of environmental protection functions among different levels of government on enterprises’ environmental innovation activities.
Journal: Applied Economics
Pages: 4170-4186
Issue: 36
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.2022093
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2022093
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Handle: RePEc:taf:applec:v:54:y:2022:i:36:p:4170-4186
Template-Type: ReDIF-Article 1.0
Author-Name: Gene Hyungjin Kim
Author-X-Name-First: Gene Hyungjin
Author-X-Name-Last: Kim
Author-Name: Hyunchul Kim
Author-X-Name-First: Hyunchul
Author-X-Name-Last: Kim
Title: Estimating switching costs for telecommunications services and bundles
Abstract:
We develop a consumer level demand model of telecommunications and broadcasting services taking into account the exhaustive set of alternatives available to consumers, including bundled services. We then estimate the switching costs associated with bundling. Previous studies are confined to choices of only one or two services, rather than addressing interrelationships among different services made possible through bundling. We find that our approach improves the accuracy of switching cost estimates compared with when the choice sets are restricted in demand models. Our results also indicate that switching costs incurred with bundling are substantial, making up approximately 65% of monthly service costs.
Journal: Applied Economics
Pages: 4356-4373
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030046
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Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4356-4373
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas H. W. Ziesemer
Author-X-Name-First: Thomas H. W.
Author-X-Name-Last: Ziesemer
Title: Foreign R&D spillovers to the USA and strategic reactions
Abstract:
This paper serves three purposes, using a vector-error-correction model (VECM) to analyse the effects of permanent changes in R&D variables. First, we re-consider the traditional result of zero or negative foreign R&D spillovers to US productivity from private and public foreign R&D stocks. Both have a positive and statistically significant effect on labour-augmenting technical change (LATC) and public R&D in the USA. Moreover, US private R&D reacts positively to foreign private R&D and negatively to foreign public R&D shocks. Second, we also find new results for the effects of changes of US R&D. Foreign public and private R&D react positively to US public R&D. All the mentioned variables react positively to changes in US private R&D. Third, based on the time profile of the simulated VECM estimate, we calculate the sum of discounted net gains for (i) additional private and public US R&D, and (ii) for policies reacting to foreign private and public R&D shocks with additional domestic private and public R&D. Additional private and public US R&D expenditures have very high internal rates of return and are profitable also in reaction to shocks from foreign R&D. All LATC reactions are transitional, suggesting semi-endogenous growth for the USA.
Journal: Applied Economics
Pages: 4274-4291
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030042
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Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4274-4291
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim Schleich
Author-X-Name-First: Joachim
Author-X-Name-Last: Schleich
Author-Name: Marie-Charlotte Guetlein
Author-X-Name-First: Marie-Charlotte
Author-X-Name-Last: Guetlein
Author-Name: Gengyang Tu
Author-X-Name-First: Gengyang
Author-X-Name-Last: Tu
Author-Name: Corinne Faure
Author-X-Name-First: Corinne
Author-X-Name-Last: Faure
Title: Household preferences for private versus public subsidies for new heating systems: insights from a multi-country discrete choice experiment
Abstract:
This paper employs demographically representative discrete choice experiments (DCEs) with owner occupiers in Poland, Sweden, and the United Kingdom (UK) to estimate the effects of subsidies, heating cost savings, installation time (reflecting ‘hassle costs’) and warranty length on owner occupiersʻ propensity to invest in a new heating system. In particular, the paper explores whether owner occupiers value subsidies received from public funding sources differently than subsidies received from private funding sources. The results from estimating mixed logit models suggest that respondents not only value subsidies for new heating systems because they decrease the net price, but they also value receiving a subsidy per se. For participants from Sweden (but not from Poland and the UK), this non-monetary value was found to be higher for subsidies offered by a public than by a private funding source. The results for heating cost savings in the three countries imply implicit discount rates between about 11 and 13%. We further find that respondents in Poland dislike longer installation times, and that respondents in all three countries value longer warranty times.
Journal: Applied Economics
Pages: 4292-4309
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030043
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030043
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Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4292-4309
Template-Type: ReDIF-Article 1.0
Author-Name: Fabiano Compagnucci
Author-X-Name-First: Fabiano
Author-X-Name-Last: Compagnucci
Author-Name: Andrea Gentili
Author-X-Name-First: Andrea
Author-X-Name-Last: Gentili
Author-Name: Enzo Valentini
Author-X-Name-First: Enzo
Author-X-Name-Last: Valentini
Author-Name: Mauro Gallegati
Author-X-Name-First: Mauro
Author-X-Name-Last: Gallegati
Title: Asymmetric responses to shocks: the role of structural change on resilience of the Euro area regions
Abstract:
Building on the notion of adaptive resilience, and sourcing from the Eurostat regional database on 150 NUTS 2 EURO regions over the period 1998–2019, we show that both industrial mix and regional specialization played a key role in the asymmetric reaction of European regional labor markets to the 2008 crisis and the following 2011–12 sovereign debt crisis. Standard and spatial econometric analyses confirm that the pre-crisis structural composition of regional labor markets resulted in the speed of the post-crisis recovery. Recovery was further affected by the kind of structural change each region experienced after the crisis, depending on their different capacity to host knowledge intensive and hi-tech activities. Based on this evidence, national austerity policies may have exacerbated regional divergence within and between EU countries.
Journal: Applied Economics
Pages: 4324-4355
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030045
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030045
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Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4324-4355
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaotuo Qiao
Author-X-Name-First: Xiaotuo
Author-X-Name-Last: Qiao
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Title: The asset growth effect in a mean-variance analysis
Abstract:
We study the asset growth effect in a mean-variance analysis. In the asset growth deciles, we uncover a U-shaped relation between asset growth and return volatility and hump-shaped relation between asset growth and Sharpe ratio, with the bottom of the volatility and peak of the Sharpe ratio both around stocks with zero asset growths. The pattern is robust to finer portfolio grids and portfolios sorted by the growth rates of asset components, including current and long-term asset, book equity, and debt; it also exists among stocks with different sizes, idiosyncratic volatilities, and market betas. The two-factor structure of the asset growth portfolios are shown to be crucial in understanding these patterns.
Journal: Applied Economics
Pages: 4259-4273
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030041
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030041
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Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4259-4273
Template-Type: ReDIF-Article 1.0
Author-Name: Abraham Agyemang
Author-X-Name-First: Abraham
Author-X-Name-Last: Agyemang
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Author-Name: Russell Gregory-Allen
Author-X-Name-First: Russell
Author-X-Name-Last: Gregory-Allen
Title: Specialization in national output and international cross-listing
Abstract:
This study utilizes a sample of 1779 firms cross-listed across 28 OECD countries to explore how specialization in national output impacts international cross-listing decisions. We find that output specialization is an essential consideration in both the decision to cross-list and the choice of host market. Our results show that specialization in national output augments cross-listing and that firms from specialized home countries cross-list in less specialized host markets. The findings, especially at the firm level, suggest that firms seek opportunities to diversify funding sources when cross-listing, further highlighted by the choice of host market.
Journal: Applied Economics
Pages: 4241-4258
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030040
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030040
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Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4241-4258
Template-Type: ReDIF-Article 1.0
Author-Name: Changlin Zeng
Author-X-Name-First: Changlin
Author-X-Name-Last: Zeng
Author-Name: Leng Yu
Author-X-Name-First: Leng
Author-X-Name-Last: Yu
Title: Do China’s Modern Agricultural Demonstration Zones work? Evidence from agricultural products processing companies
Abstract:
This paper examines the effect of place-based agricultural industry policy on firm-level development, focusing on the establishment of Modern Agricultural Demonstration Zones (MADZ) in China. Using a panel data of agricultural products processing companies from 2007 to 2013, we apply difference in difference (DID) method and find that the policy has significantly increased the employment, output and assets. The government’s selection of MADZ may not be random, leading to endogenous problems. We deal with this selection bias on site and strengthen our estimation results with a series of robustness tests. Based on the mechanism analysis, the effect of MADZ comes from tax deductions and agglomeration effects. In addition, we use the data of listed companies to verify the role of MADZ in promoting the total factor productivity (TFP) of agricultural companies.
Journal: Applied Economics
Pages: 4310-4323
Issue: 37
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030044
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030044
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Handle: RePEc:taf:applec:v:54:y:2022:i:37:p:4310-4323
Template-Type: ReDIF-Article 1.0
Author-Name: Mabruk Billah
Author-X-Name-First: Mabruk
Author-X-Name-Last: Billah
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Title: Spillovers on sectoral sukuk returns: evidence from country level analysis
Abstract:
Even though numerous studies have looked at the spillover effects in Shari’ah compliant equity returns, little attention has been paid to exploring global shocks’ transmission to the sukuk (Islamic Bond) returns. Our paper attempts to fill this void by quantifying spillovers from developed countries on the sukuk returns of Islamic countries. In this paper, we create sukuk indices for financial and non-financial companies on country basis and, examine the global linkages with those sukuk indices. We have found that global sukuk markets affect the sukuk indices at different levels. A clear distinction would be that global sukuk markets have a substantial impact on the spillovers of the sukuk issued by financial corporations, while sukuk issued by non-financial corporations are more affected by the overall spillover effect the sukuk markets than spillovers from the global Islamic bond markets. Sub-sample analysis during the COVID-19 pandemic yield interesting findings, show that spillover of returns on the sukuk issued by financial corporations during the COVID-19 pandemic was higher than the sukuk issued by non-financial corporations. These findings are mostly consistent for all markets included in our sample and evidently, urge portfolio holders to make clear distinctions between sukuk issued by financial and non-financial corporations.
Journal: Applied Economics
Pages: 4402-4432
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030049
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030049
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Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4402-4432
Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohang Ren
Author-X-Name-First: Xiaohang
Author-X-Name-Last: Ren
Author-Name: Yue Dou
Author-X-Name-First: Yue
Author-X-Name-Last: Dou
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Yiying Li
Author-X-Name-First: Yiying
Author-X-Name-Last: Li
Title: Information spillover and market connectedness: multi-scale quantile-on-quantile analysis of the crude oil and carbon markets
Abstract:
The asymmetric interdependence of carbon futures and crude oil futures prices in different market conditions remains unsettled in the literature. This study aims to quantify the crude oil price impacts on carbon price across the carbon-oil distribution in Phase III. For this purpose, we employ two novel methods, namely the quantile Granger causality test and the quantile-on-quantile regression methods. To detect the short-, medium-, and long-term impacts of the crude oil price on carbon price, we further decompose the sample series into six components using the wavelet method. Accordingly, we are able to estimate the nexus between carbon futures and crude oil futures prices in different time and frequency domains. Through a series of robustness checks, we find our results stable and robust, indicating that the crude oil impact on carbon price is asymmetric, conditional on the whole carbon and crude oil price distributions. Furthermore, the crude oil impact varies across different time scales, and shows negative signs throughout the whole carbon price distribution in the short term and basically positive signs in the medium and long term. Based on the above findings, we highlight several important policy implications to promote better market regulation and portfolio optimization.
Journal: Applied Economics
Pages: 4465-4485
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030855
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030855
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Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4465-4485
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Javid
Author-X-Name-First: Muhammad
Author-X-Name-Last: Javid
Author-Name: Fakhri J. Hasanov
Author-X-Name-First: Fakhri J.
Author-X-Name-Last: Hasanov
Author-Name: Carlo Andrea Bollino
Author-X-Name-First: Carlo Andrea
Author-X-Name-Last: Bollino
Author-Name: Marzio Galeotti
Author-X-Name-First: Marzio
Author-X-Name-Last: Galeotti
Title: Sectoral investment analysis for Saudi Arabia
Abstract:
This study aims to investigate the determinants of short- and long-run private investment behavior in Saudi Arabia for eight non-oil sectors. Saudi Arabia is currently proceeding with its Vision 2030 reform plan, which aims to significantly increase the private sector’s contribution to the country’s gross domestic product. Thus, analyzing private investments at the sectoral level is important for Saudi Arabia. Such an analysis can provide policymakers with a deeper understanding of potential opportunities for boosting private sector growth. This study therefore uses a cointegration and equilibrium correction approach to empirically analyze investments by sector over the period from 1989–2017. We identify a long-run relationship among investments, output and the real interest rate for all sectors except agriculture. Additionally, the real exchange rate has long-run relationships with investments in the agriculture, non-oil manufacturing and other services sectors. This finding implies that sector-specific tailored investment policies are preferable to a one-size-fits-all investment policy.
Journal: Applied Economics
Pages: 4486-4500
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030856
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030856
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Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4486-4500
Template-Type: ReDIF-Article 1.0
Author-Name: Srikant Devaraj
Author-X-Name-First: Srikant
Author-X-Name-Last: Devaraj
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Igor Pereira
Author-X-Name-First: Igor
Author-X-Name-Last: Pereira
Title: In-utero exposure to local COVID-19 incidence and infant birthweight in Brazil
Abstract:
In this article, we investigate whether in-utero exposure to municipal-level COVID-19 incidence rates in Brazil was associated with lower infant birth weight. To lower endogeneity related to conception during COVID-19, we include infants who were conceived before and born after, the first official case of COVID-19 in Brazil, 26 February 2020. Using the administrative natality data of infants, in-utero exposure to local COVID-19 incidence rate did not affect infant birth weight, and the estimates are robust to heterogeneities by mother’s demographic and socioeconomic characteristics. Findings have implications for the effect of in-utero exposure to local COVID-19 incidence rates and birth weight.
Journal: Applied Economics
Pages: 4449-4464
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030461
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030461
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Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4449-4464
Template-Type: ReDIF-Article 1.0
Author-Name: Havvanur Feyza Kaya
Author-X-Name-First: Havvanur Feyza
Author-X-Name-Last: Kaya
Author-Name: George B. Tawadros
Author-X-Name-First: George B.
Author-X-Name-Last: Tawadros
Title: Estimating an optimal macroeconomic uncertainty index for Australia
Abstract:
In this article, an optimal macroeconomic uncertainty index is constructed for the Australian economy. This index is derived from a small structural macroeconomic model. The structural model is first estimated using GMM to extract the parameter estimates, which are then used to initialize maximum likelihood techniques in order to obtain the optimal coefficient values for the relevant variables. The relevant variables are then weighted by the obtained optimal coefficients and, finally, are aggregated to produce the optimal macroeconomic uncertainty index for Australian economy. The empirical results show that the uncertainty index constructed is a good indicator of the optimal economic conditions in Australia, providing a useful tool to assist the Reserve Bank of Australia in its decision-making process.
Journal: Applied Economics
Pages: 4374-4383
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2020.1862749
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1862749
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Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4374-4383
Template-Type: ReDIF-Article 1.0
Author-Name: Mona Said
Author-X-Name-First: Mona
Author-X-Name-Last: Said
Author-Name: Rami Galal
Author-X-Name-First: Rami
Author-X-Name-Last: Galal
Author-Name: Mina Sami
Author-X-Name-First: Mina
Author-X-Name-Last: Sami
Title: Gender diversity, productivity, and wages in private Egyptian firms
Abstract:
Womenʻs employment is not evenly distributed across sectors and firms and this variance in gender diversity can impact firmsʻ productivity and wages in both positive and negative ways according to theory. Using new economic census data from Egypt, this paper explores the relationship between gender diversity, productivity, and wages. Our first finding is that gender diversity is positively associated with productivity and wages in the knowledge-intensive service sector. Our second finding is that there is a negative or no association between gender diversity and productivity and wages among less knowledge-intensive service and both high- and low-tech manufacturing firms. These relationships are robust across different industry classifications and measures of diversity.
Journal: Applied Economics
Pages: 4433-4448
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030460
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030460
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Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4433-4448
Template-Type: ReDIF-Article 1.0
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Huan Zheng
Author-X-Name-First: Huan
Author-X-Name-Last: Zheng
Title: Do environmental regulations affect firm financial distress in China? Evidence from stock markets
Abstract:
This study explores how environmental regulations affected firm financial distress in China from 1999 to 2018, when the national strategy experienced a major adjustment from economic development only to sustainable growth. Instead of targeting specific environmental policy, we divide environmental regulations for firms into two major types, including energy conservation and pollution reduction, and discuss the influences of the overall levels of Chinese environmental regulations in the last two decades. We find that these regulations were negatively associated with firm performance, positively related to the possibility of financial distress, and negatively associated with the length of distress time. Our additional tests also show that the two types of environmental regulations had different influences on firm financial distress for various firm characteristics, including state ownership and industries. The empirical results remain robust when alternative measures of financial distress and potential endogenous issues are controlled.
Journal: Applied Economics
Pages: 4384-4401
Issue: 38
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030048
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030048
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Handle: RePEc:taf:applec:v:54:y:2022:i:38:p:4384-4401
Template-Type: ReDIF-Article 1.0
Author-Name: Jacob A. Bikker
Author-X-Name-First: Jacob A.
Author-X-Name-Last: Bikker
Author-Name: Jeroen J. Meringa
Author-X-Name-First: Jeroen J.
Author-X-Name-Last: Meringa
Title: Have scale effects on cost margins of pension fund investment portfolios disappeared?
Abstract:
Investment costs of pension funds are crucial for their returns. Consolidation in the pension fund market proceeds continuously, often with cost savings as the main argument. Unused economies of scale in pension fund investment costs, however, have declined over the years to values close to zero, except for very small pension funds. This paper investigates investment economies of scale in the Netherlands and pays special attention to the non-linear relationship between investment costs and sizes of pension funds. Furthermore, investment cost margins are disaggregated into three cost types and into six asset categories. Performance fees are in particular paid for complex asset categories held by large pension funds. They reduce the traditional-scale economy results for the entire portfolio. Cost savings by consolidation is still possible but is very limited.
Journal: Applied Economics
Pages: 4501-4518
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2030857
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2030857
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Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4501-4518
Template-Type: ReDIF-Article 1.0
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: João Pedro Neves Maia
Author-X-Name-First: João Pedro Neves
Author-X-Name-Last: Maia
Title: Interest rate expectations based on Taylor rule versus central bank’s survey: which performs better in a large emerging economy?
Abstract:
We analyzed rationality, content, and anchoring of the monetary policy interest rate expectations (for 3, 6, 9, and 12 months ahead), taking into account the Brazilian data from January 2003 to July 2020. We consider expectations based on two perspectives: expectations gathered from a Taylor rule and market expectations obtained from the survey carried out by the central bank. The findings point out that, concerning rationality and anchoring, the interest rate expectations based on a Taylor rule performed better than expectations from the Central Bank of Brazil’s (CBB) survey, even when we consider the Top 5 forecasters. Moreover, our analysis shows that the content of monetary policy interest rate expectations based on a Taylor rule and CBB’s survey (including Top 5 forecasters) is different. Thus, they may be seen as complementary sources of information on the future interest rate. Concerning anchoring of the monetary policy interest rate expectations, the CBB’s survey expectations are not anchored, while the result for the expectations based on a Taylor rule shows the opposite for horizons up to 9 months ahead.
Journal: Applied Economics
Pages: 4532-4544
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2031859
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2031859
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Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4532-4544
Template-Type: ReDIF-Article 1.0
Author-Name: Fotini Economou
Author-X-Name-First: Fotini
Author-X-Name-Last: Economou
Author-Name: Ioanna Kountouri
Author-X-Name-First: Ioanna
Author-X-Name-Last: Kountouri
Author-Name: Yannis Panagopoulos
Author-X-Name-First: Yannis
Author-X-Name-Last: Panagopoulos
Author-Name: Georgia Skintzi
Author-X-Name-First: Georgia
Author-X-Name-Last: Skintzi
Author-Name: Ekaterini Tsouma
Author-X-Name-First: Ekaterini
Author-X-Name-Last: Tsouma
Title: Estimating excise tax revenue elasticity and buoyancy for tobacco products and alcoholic beverages: evidence from Greece
Abstract:
The aim of this paper is to estimate excise tax revenue elasticity and buoyancy for tobacco products and alcoholic beverages in Greece, for the period 2000–2020. To this end, we employ core and more extended error correction models. Overall, our empirical results do not confirm the appropriateness of the unity assumption. Policy measures seem to affect excise tax revenues in the long run mostly through the tax-to-base relation. In most cases, excise tax revenues seem to have a larger reaction to changes in the tax base in the short run, which could be associated with different asymmetric effects, in particular the crisis/adjustment and the COVID-19 lockdown effects. Our findings indicate several differences in excise tax revenue elasticity and buoyancy between the two product categories, suggesting that individual product categories should be examined separately for a more precise estimate of tax revenue sensitivity. This implication may assist policy makers to effectively design the related tax policies, especially during abnormal periods like the COVID-19 pandemic, and derive more accurate tax revenue forecasts.
Journal: Applied Economics
Pages: 4557-4576
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2032581
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2032581
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Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4557-4576
Template-Type: ReDIF-Article 1.0
Author-Name: Ionela-Cătălina Zamfir
Author-X-Name-First: Ionela-Cătălina
Author-X-Name-Last: Zamfir
Author-Name: Ana-Maria Mihaela Iordache
Author-X-Name-First: Ana-Maria Mihaela
Author-X-Name-Last: Iordache
Title: The influences of covid-19 pandemic on macroeconomic indexes for European countries
Abstract:
The Covid-19 pandemic had a major impact in the entire world, both sanitary and economic. The purpose of this study is to analyse the European countries from this point of view. The main economic indicators related to import, wages, labour productivity, consumption, taxes, gross domestic product (GDP), as well as variables related to Covid-19 pandemic measures were considered in order to estimate the impact that pandemic measures have in economy. Principal component analysis was performed in order to reduce the dataset dimensionality and to create new indicators. Selected European countries are characterized and compared using principal components analysis outputs while regression is used to identify an influence of independent variables on GDP. The main results show that, comparing European countries economic situation in 2020 with the previous 2 years and considering variables that show the adopted closure measures, the Covid-19 pandemic have influenced the GDP from European countries.
Journal: Applied Economics
Pages: 4519-4531
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2031858
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2031858
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Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4519-4531
Template-Type: ReDIF-Article 1.0
Author-Name: Kuang-Cheng Chai
Author-X-Name-First: Kuang-Cheng
Author-X-Name-Last: Chai
Author-Name: Hao-Ran Lan
Author-X-Name-First: Hao-Ran
Author-X-Name-Last: Lan
Author-Name: Jia-Wei Zhu
Author-X-Name-First: Jia-Wei
Author-X-Name-Last: Zhu
Author-Name: Zhen-Xin Cui
Author-X-Name-First: Zhen-Xin
Author-X-Name-Last: Cui
Author-Name: Zhi-Yong Sui
Author-X-Name-First: Zhi-Yong
Author-X-Name-Last: Sui
Title: Impacts of founder management on the operational efficiency of enterprises in different regions in China
Abstract:
Under the influence of the severe downturn in the global economic situation, China’s economy is currently in a difficult and long transition period. How an enterprise maintains high operational efficiency is especially important. As a key management position, the founder has a strong sense of corporate responsibility. Therefore, this study conducted an empirical analysis of the impact of founder management on the enterprises operational efficiency using data on private listed companies in China’s from 2010 to 2019. The results showed that founder management could improve the operational efficiency of enterprises compared with non-founder management. The economic gap between China’s western region and the central and eastern regions has not significantly improved, which will directly affect the development of private enterprises in the western region. We compared the enterprises in western region with non-western regions, and showed that enterprises managed by founders in the western region, compared with those in non-western regions, have reduced positive effects of founder management on their operating efficiency. In China, these conclusions have important theoretical value and practical significance for clarifying the relationship between founder management and operating efficiency because the system is different from that of western countries.
Journal: Applied Economics
Pages: 4577-4585
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2032582
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2032582
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Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4577-4585
Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Ting Peng
Author-X-Name-First: Yi-Ting
Author-X-Name-Last: Peng
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Author-Name: Omid Ranjbar
Author-X-Name-First: Omid
Author-X-Name-Last: Ranjbar
Title: Re-Investigating the degree of persistence of U.S. economic policy uncertainty using the Fourier non-linear quantile unit root test
Abstract:
This research tests the mean reversion properties of the U.S. EPU (economic policy uncertainty) index and its 11 sub-categories using the Fourier non-linear quantile unit root test over the period 1985M1-2020M12. The results indicate the following. (1) The U.S. EPU index responds asymmetrically to shocks, in which positive shocks are more long-lasting than negative shocks. (2) Monetary, fiscal, and trade policies and also national security and regulation series behave like unit root processes in all quartiles, whereas by contrast financial regulation and sovereign debt exhibit stationary behaviour over all quantiles. (3) Government spending, health care, national security, and entitlement programmes present stationary processes in low/high quantiles.
Journal: Applied Economics
Pages: 4586-4595
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2032584
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2032584
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Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4586-4595
Template-Type: ReDIF-Article 1.0
Author-Name: Helmi Hamdi
Author-X-Name-First: Helmi
Author-X-Name-Last: Hamdi
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Title: Improving the environmental quality: Should African countries locally innovate or import innovation?
Abstract:
Does environmental quality get benefits from local innovation or the imported one? To answer this question, we investigate a sample of African countries throughout 2009–2018, using the panel dynamic System Generalized Method of Moment (SGMM) as an econometric approach. The empirical findings indicate that local innovation significantly improves the environmental quality while the imported one has harmful effects. The robustness check confirms this conclusion and proves the positive effects of local innovation in preserving the environment quality.
Journal: Applied Economics
Pages: 4545-4556
Issue: 39
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2031860
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2031860
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Handle: RePEc:taf:applec:v:54:y:2022:i:39:p:4545-4556
Template-Type: ReDIF-Article 1.0
Author-Name: Pei-Ling Sheu
Author-X-Name-First: Pei-Ling
Author-X-Name-Last: Sheu
Author-Name: Shu-Chun Chang
Author-X-Name-First: Shu-Chun
Author-X-Name-Last: Chang
Title: Relationship of service quality dimensions, customer satisfaction and loyalty in e-commerce: a case study of the Shopee App
Abstract:
The development of information technology and mobile device functions have increased the number of online shopping applications, which has increased the competition to attract customers. Service quality has been traced as an important factor that influences consumers’ buying behaviour. This present study aimed to assess the difference of four dimensions of service quality (efficiency, fulfilment, system availability, and privacy services) and to examine the relationship of service quality dimensions towards customers’ satisfaction and loyalty on Shopee App. The data collection conducted from 03rd January to 31 January 2019 were carried out by an online survey. The data were collected from 373 samples. The data were analysed using ANOVA to evaluate the difference in service quality dimensions and regression analysis to examine the relationship among service quality, satisfaction, and loyalty. This study found that the significant difference in service quality dimensions with the highest importance to customers was efficiency, followed by fulfilment, system availability, and privacy. All service quality dimensions positively influenced the customer’s satisfaction. Furthermore, the efficiency, fulfilment, and privacy services were the significant factors of customers’ loyalty to use the Shopee App. Lastly, consumers’ satisfaction positively influenced the consumers’ loyalty.
Journal: Applied Economics
Pages: 4597-4607
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2021.1980198
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1980198
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Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4597-4607
Template-Type: ReDIF-Article 1.0
Author-Name: Rami Zeitun
Author-X-Name-First: Rami
Author-X-Name-Last: Zeitun
Author-Name: Mohamed Goaied
Author-X-Name-First: Mohamed
Author-X-Name-Last: Goaied
Title: The nexus between debt structure, firm performance, and the financial crisis: non-linear panel data evidence from Japan
Abstract:
This study seeks to analyze the non-linear relationship between a firm’s debt structure and performance based on evidence from Japan through the use of a panel data fixed effects model for a sample of 1,670 listed firms. This is the first study that looks at the effect of the short-term debt threshold on corporate performance, as well as the influence of the 2008 global financial crisis (GFC) on the nonlinear effect of debt structure on corporate performance. Moreover, it represents an initial endeavor that uses cross-industry comparisons to scrutinize the nonlinear effect of debt structure on the performance of Japanese companies. This study’s findings reveal the presence of a nonlinear impact of debt with short-term maturity on corporate performance. In addition, there is a U-shaped relationship between firm performance and short-term debt, suggesting that a firm’s profit decreases at lower levels of short-term debt (below 45.2%) and increases at higher levels of debt with short-term maturity. Moreover, this short-term debt threshold was affected significantly by the financial crisis.
Journal: Applied Economics
Pages: 4681-4699
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2033680
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2033680
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Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4681-4699
Template-Type: ReDIF-Article 1.0
Author-Name: Zhe Song
Author-X-Name-First: Zhe
Author-X-Name-Last: Song
Author-Name: Chen Hao
Author-X-Name-First: Chen
Author-X-Name-Last: Hao
Title: Housing price and criminal crime in China: direct and indirect influence
Abstract:
The aim of the present work is to focus on the increased number of criminal crimes from the perspective of the rising housing price in China. Based on the theory of crime economics, the article analyzed the direct and indirect influence channel through which the housing prices may have impacts on criminal crimes. The paper collected the panel data of 27 province-level regions in China from 2004 to 2017 and verified the hypotheses by using fixed effect model, mediating effect model and spatial Dubin model. Our study offered the following conclusions: 1. The rise in housing price is a generative impetus for the frequent occurrence of the criminal offenses. 2. Consumption gap serves as the mediating variable between housing price and criminal crime. 3. There is a spatial correlation between housing price and criminal crime in China. Finally, the paper proposed relevant suggestions based on the above conclusions.
Journal: Applied Economics
Pages: 4647-4663
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2033678
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2033678
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Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4647-4663
Template-Type: ReDIF-Article 1.0
Author-Name: Markus Brueckner
Author-X-Name-First: Markus
Author-X-Name-Last: Brueckner
Author-Name: Ngo Van Long
Author-X-Name-First: Ngo
Author-X-Name-Last: Van Long
Author-Name: Joaquin Vespignani
Author-X-Name-First: Joaquin
Author-X-Name-Last: Vespignani
Title: Trade, education, and income inequality
Abstract:
This paper examines the relationship between countries’ bilateral trade with the United States that is not due to gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non-gravity trade has no significant effect on income inequality in countries that are world leaders in education.
Journal: Applied Economics
Pages: 4608-4631
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2027862
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2027862
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Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4608-4631
Template-Type: ReDIF-Article 1.0
Author-Name: Sónia R. Bentes
Author-X-Name-First: Sónia R.
Author-X-Name-Last: Bentes
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Title: The impact of COVID-19 on gold seasonality
Abstract:
This study investigates the impact of COVID-19 on the seasonality of gold returns by means of an asymmetric EGARCH model (Exponential GARCH). We find that the so-called ‘autumn effect’, or the traditional seasonal increase in gold returns in fall, vanishes and even shows a reverse pattern during the COVID-19 pandemic. We ascribe this phenomenon to the decaying demand for gold, which substantially decreased in the third quarter of 2020. In contrast, we find no evidence of seasonal effects in gold volatility, which is in line with earlier researches on this topic. Our results also confirm the positive asymmetric effect of gold volatility.
Journal: Applied Economics
Pages: 4700-4710
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2033681
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2033681
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Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4700-4710
Template-Type: ReDIF-Article 1.0
Author-Name: Klaus Grobys
Author-X-Name-First: Klaus
Author-X-Name-Last: Grobys
Author-Name: James W. Kolari
Author-X-Name-First: James W.
Author-X-Name-Last: Kolari
Author-Name: Joachim Niang
Author-X-Name-First: Joachim
Author-X-Name-Last: Niang
Title: Man versus machine: on artificial intelligence and hedge funds performance
Abstract:
Employing partially hand-collected data, sample hedge funds are formed into four categories depending on their level of automation. We find that hedge funds with the highest level of automation outperform other hedge funds with more reliance on human involvement. Also, we find that a man versus machine zero-cost strategy that is long hedge funds portfolio with highest level of automation and short those with highest level of human involvement yields a highly significant spread of at least 50 basis points per month. We conclude that automation plays an important role in the profitability of the hedge fund industry.
Journal: Applied Economics
Pages: 4632-4646
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2032585
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2032585
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Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4632-4646
Template-Type: ReDIF-Article 1.0
Author-Name: Won-Sik Hwang
Author-X-Name-First: Won-Sik
Author-X-Name-Last: Hwang
Author-Name: Chanyoung Hong
Author-X-Name-First: Chanyoung
Author-X-Name-Last: Hong
Author-Name: Inha Oh
Author-X-Name-First: Inha
Author-X-Name-Last: Oh
Author-Name: Yeongjun Yeo
Author-X-Name-First: Yeongjun
Author-X-Name-Last: Yeo
Title: Assessing the economy-wide impacts of public R&D support options based on a computable general equilibrium model: focusing on types of fiscal incentives and beneficiaries
Abstract:
This study conducted quantitative comparisons of various public R&D support options using a CGE model. The analysis considered four different options by varying the types of fiscal incentives and the scope of beneficiaries concerning the firm size. The findings indicate that direct subsidy is more effective in spurring private R&D investments than indirect tax incentives. In addition, selective R&D support toward small and medium enterprises is found to induce balanced growth among industries. In summary, the simulation results suggest that R&D support under the direct subsidy scheme aimed at SMEs has the potential to achieve a higher equilibrium state within the Korean economy. This study confirms that the government should carefully design the R&D promotion policy by ensuring that direct R&D inducement effects are transmitted to industrial output growth with a diversified industrial structure and higher knowledge spillover effects.
Journal: Applied Economics
Pages: 4664-4680
Issue: 40
Volume: 54
Year: 2022
Month: 08
X-DOI: 10.1080/00036846.2022.2033679
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2033679
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Handle: RePEc:taf:applec:v:54:y:2022:i:40:p:4664-4680
Template-Type: ReDIF-Article 1.0
Author-Name: Seungyeon Cho
Author-X-Name-First: Seungyeon
Author-X-Name-Last: Cho
Title: Financial literacy and its relation to lottery gambling consumption
Abstract:
This study uses restricted-version data from the 2018 state-by-state survey of the National Financial Capability Study to investigate the relationship between financial literacy and lottery consumption frequency. To control for the potential endogeneity of financial literacy, I employ the ordered probit model with an endogenous regressor by instrumenting the average education level of a zip-code area for financial literacy. The results indicate that an increase in financial literacy significantly reduces the lottery consumption of those who play with moderate frequency, while no marked curbing effects are found for heavy lottery players. This suggests that different policies are needed to reduce lottery consumption for those who engage with moderate frequency and those who engage with high frequency.
Journal: Applied Economics
Pages: 4725-4731
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2035669
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2035669
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Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4725-4731
Template-Type: ReDIF-Article 1.0
Author-Name: Di Gong
Author-X-Name-First: Di
Author-X-Name-Last: Gong
Author-Name: Zongxin Qian
Author-X-Name-First: Zongxin
Author-X-Name-Last: Qian
Title: Inflation targeting and financial crisis
Abstract:
We study the average treatment effect of inflation targeting on the likelihood of financial crisis with a large panel of countries over 1980–2017. To address the self-selection problem of inflation targeting, we adopt propensity score matching. Various matching estimators show consistent evidence that inflation targeting has significantly reduced the probability of a financial crisis. When decomposing financial crisis into various types, the effects are pronounced for the banking crisis, inflation crisis, external debt crisis, and stock crash. Our results are largely unaltered to a battery of robustness checks when controlling for legal origins, governance quality, financial development, capital account openness, fiscal balance, debt-to-GDP ratio, financial regulations, and central bank independence. This paper suggests that price-stability-oriented monetary policy frameworks, such as inflation targeting, also have non-negligible ‘side effects’ on financial stability.
Journal: Applied Economics
Pages: 4782-4795
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036685
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036685
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Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4782-4795
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Alfaro
Author-X-Name-First: Martin
Author-X-Name-Last: Alfaro
Title: Assessing gains of trade in monopolistic competition under the presence of industry leaders
Abstract:
A recent literature has documented a widespread rise of superstar firms. This is at odds with the simplifying assumption of a continuum of firms, predominant in International Trade. In this paper, we assess its consequences by identifying the magnitude and direction in which gains of trade depart from monopolistic competition once we account for leading firms. With this goal, we extend the Melitz model by incorporating a revenue threshold such that truly negligible firms are modelled as in Melitz, while the largest ones are treated as non-negligible firms that earn positive profits. Firm-level data for several countries show that accounting for leaders entails greater gains of trade in all cases, with differences of up to 20%. The outcome is explained by an additional benefit of reallocating resources towards more productive firms, not captured by the Melitz model: increases in aggregate income through positive effects on profits.
Journal: Applied Economics
Pages: 4711-4724
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2021.1994915
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1994915
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Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4711-4724
Template-Type: ReDIF-Article 1.0
Author-Name: Qing (Sophie) Wang
Author-X-Name-First: Qing (Sophie)
Author-X-Name-Last: Wang
Author-Name: Shaojie Lai
Author-X-Name-First: Shaojie
Author-X-Name-Last: Lai
Author-Name: Xiaping (Jerry) Cao
Author-X-Name-First: Xiaping (Jerry)
Author-X-Name-Last: Cao
Author-Name: Shiang Liu
Author-X-Name-First: Shiang
Author-X-Name-Last: Liu
Title: The effect of institutional investors’ site visits: evidence on corporate cash holdings
Abstract:
This study examines the impact of institutional investors’ site visits (SVs) on corporate cash holdings by using a unique dataset of SVs in China during the period of 2012–2019. We find that SVs significantly increase the level of cash holdings, and the result remains robust after addressing endogeneity concerns and selection bias. The positive impact of SVs on cash holding is more pronounced if a firm has a lower information quality, confirming that SVs facilitate information distribution between managers and investors and thus allowing more cash holding. Further analyses show that firms rely greatly on equity issues and internal cash flows for cash savings, and SVs increase the value of cash for shareholders. Collectively, our findings suggest a new effect of institutional investors’ site visits.
Journal: Applied Economics
Pages: 4767-4781
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036321
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036321
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Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4767-4781
Template-Type: ReDIF-Article 1.0
Author-Name: Lexin Zhao
Author-X-Name-First: Lexin
Author-X-Name-Last: Zhao
Author-Name: Qianbin Feng
Author-X-Name-First: Qianbin
Author-X-Name-Last: Feng
Author-Name: Wen-Quan Hu
Author-X-Name-First: Wen-Quan
Author-X-Name-Last: Hu
Title: Investment incentives and labor share: evidence from accelerated depreciation policy in China
Abstract:
This paper studies the impact of Chinaʻs accelerated depreciation policy (ADP) that was enacted in 2014 on labor share. We explore a firm-level dataset from Chinaʻs industrial enterprise database and estimate the policy effects using a difference-in-differences framework. We find that the ADP apparently reduces the labor share of the treated firms compared to the control firms, which is a net effect jointly driven by the capital deepening and skill structure upgrading channels. Among these two channels, the former is dominant and has negative effects on labor share, while the latter is positively related to the labor share. We also demonstrate that the firms with less financial constraints experience a more profound capital deepening process and a larger decline in labor share after policy enactment. These results suggest that the widespread use of investment tax incentives may be one of the reasons for the decline in global labor share in recent years.
Journal: Applied Economics
Pages: 4751-4766
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036320
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036320
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Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4751-4766
Template-Type: ReDIF-Article 1.0
Author-Name: Kyoungwon Mo
Author-X-Name-First: Kyoungwon
Author-X-Name-Last: Mo
Author-Name: Younghyo Song
Author-X-Name-First: Younghyo
Author-X-Name-Last: Song
Author-Name: Soo Yeon Park
Author-X-Name-First: Soo Yeon
Author-X-Name-Last: Park
Title: Mutual fund investment, group-affiliation, and stock price crash risk: evidence from Korea
Abstract:
This study examines how mutual funds affect future stock price crash risk in the capital market. Particularly, we focus on investigating the relationship between mutual funds affiliated with chaebol groups and subsequent stock price crash risk. We find that mutual funds have a significantly positive effect on future stock price crash risk. We also observe a significantly negative relationship between group-affiliated mutual funds and subsequent stock price crash risk.
Journal: Applied Economics
Pages: 4796-4811
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036686
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036686
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Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4796-4811
Template-Type: ReDIF-Article 1.0
Author-Name: Dierk Herzer
Author-X-Name-First: Dierk
Author-X-Name-Last: Herzer
Author-Name: Niklas Schmelmer
Author-X-Name-First: Niklas
Author-X-Name-Last: Schmelmer
Title: The effects of greenfield foreign direct investment and cross‐border mergers and acquisitions on energy intensity in upper-middle income countries and low- and lower-middle income countries
Abstract:
This study examines the effects of greenfield foreign direct investment (FDI) and cross‐border mergers and acquisitions (M&As) on energy intensity for a sample of 35 upper-middle-income countries (UMICs) and a sample of 49 low- and lower-middle-income countries (LLMICs). It is the first to examine the energy intensity effects of greenfield FDI and cross‐border M&As for subgroups of developing countries with different levels of income. It is also the first study of its kind to use stationary and non-stationary panel methods. The main findings are: first, both greenfield FDI and cross-border M&As have an insignificant impact on energy intensity in LLMICs, and second, while the effect of cross-border M&As on energy intensity is insignificant in UMICs, greenfield FDI exerts a negative and significant impact on energy intensity in UMICs.
Journal: Applied Economics
Pages: 4732-4750
Issue: 41
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2035670
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2035670
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Handle: RePEc:taf:applec:v:54:y:2022:i:41:p:4732-4750
Template-Type: ReDIF-Article 1.0
Author-Name: Imane El Ouadghiri
Author-X-Name-First: Imane
Author-X-Name-Last: El Ouadghiri
Author-Name: Elias Erragragui
Author-X-Name-First: Elias
Author-X-Name-Last: Erragragui
Author-Name: Jamil Jaballah
Author-X-Name-First: Jamil
Author-X-Name-Last: Jaballah
Author-Name: Jonathan Peillex
Author-X-Name-First: Jonathan
Author-X-Name-Last: Peillex
Title: Institutional investor attention and stock market volatility and liquidity: international evidence
Abstract:
In this paper, we examine the influence of the daily institutional investor attention to particular stocks on stock volatility and liquidity. The institutional investor attention is measured from the number of times that users of Bloomberg terminal, who are mostly institutional investors, search for or read articles on a specific stock. Relying on a large international dataset of approximately a million daily observations over the period 2011–2020 from nine countries (Canada, France, Germany, Japan, Russia, South Korea, Switzerland, the UK, and the US), we find that this recent measure of institutional investor attention has a strong positive effect on stock volatility and liquidity. Confirmed by a battery of robustness tests, our findings suggest that this continuous barometer of attention by institutional investors can be used by financial practitioners to predict future stock volatility and liquidity.
Journal: Applied Economics
Pages: 4839-4854
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036689
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036689
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Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4839-4854
Template-Type: ReDIF-Article 1.0
Author-Name: Amanjot Singh
Author-X-Name-First: Amanjot
Author-X-Name-Last: Singh
Title: Does trade credit financing matter for stock returns in times of crisis? Evidence from the COVID-19 stock market crisis
Abstract:
We examine the role of trade credit financing as a latent feature that becomes important during a crisis period, especially in the wake of the COVID-19 pandemic. Using a sample of 2,092 US firms, our findings support that shareholders pay additional attention to firmsʻ pre-crisis reliance on trade credit financing during a crisis period. While the prior literature document a positive relationship, we find evidence that trade credit financing is negatively related to stock market returns of US firms around the COVID-19-induced market crisis. This negative relationship is robust to several sensitivity tests and restricted to firms with: (1) financial constraints; (2) lower reliance on external financing; (3) higher short-term debt; and (4) higher labor intensity and labor adjustment costs. Trade credit financing contains information about firmsʻ possible financial constraints, external financing, short-term debt, and information asymmetry.
Journal: Applied Economics
Pages: 4855-4873
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036690
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036690
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Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4855-4873
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Ghulam Mustafa
Author-X-Name-First: Ghulam
Author-X-Name-Last: Mustafa
Author-Name: Shafaq Malik
Author-X-Name-First: Shafaq
Author-X-Name-Last: Malik
Title: COVID-19 pandemic, stock returns, and volatility: the role of the vaccination program in Canada
Abstract:
This paper examines how stock returns and volatility in the Canadian stock market have been affected by both the COVID-19 pandemic and the associated vaccination program. The empirical analysis is based on the generalized autoregressive conditionally heteroskedastic model which explicitly allows the inclusion of information on the COVID-19 pandemic and the vaccination program. The analysis uses daily Canadian equity returns and volatility, spanning the period 27 January 2020, to 31 August 2021. The findings provide evidence that the COVID-19 pandemic exerts a significant negative impact on the mean of Canadian stock returns and a positive impact on their volatility. In contrast, the findings provide novel evidence that the vaccination program in Canada has reversed these detrimental effects.
Journal: Applied Economics
Pages: 4825-4838
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036688
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036688
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Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4825-4838
Template-Type: ReDIF-Article 1.0
Author-Name: Fredj Jawadi
Author-X-Name-First: Fredj
Author-X-Name-Last: Jawadi
Author-Name: Nabila Jawadi
Author-X-Name-First: Nabila
Author-X-Name-Last: Jawadi
Author-Name: Abdoulkarim Idi Cheffou
Author-X-Name-First: Abdoulkarim
Author-X-Name-Last: Idi Cheffou
Title: The COVID-19 pandemic and ethical stock markets: further evidence of moral shock
Abstract:
The aim of this study is twofold. First, we assess the evolution of stock returns for two classes of ethical investments—Islamic and sustainable funds—from September 2001–January 2021. This is the first study of the financial performance of ethical investments in a period covering technological (the dot-com bubble in 2000), financial (the 2008 financial crisis), and healthcare shocks (the COVID-19). Second, we analyze the dynamics of the financial returns of conventional and ethical ethnic markets in the COVID-19 context and model the impact of COVID-19 news. We perform different time-varying tests to apprehend market reactions to the COVID-19 pandemic. We present two interesting results. First, the COVID-19 pandemic has had a time-varying impact on the stock market. Basically, a close to zero effect at the early stage of the pandemic, followed by a negative and significant effect during the first wave from March 2020 to June 2020, was observed. However, this has since been attenuated owing to social restriction measures, teleworking, government stimulus policies, and massive vaccine rollouts. Second, among all markets, the Islamic stock market is the most resilient and least impacted by the pandemic, suggesting evidence of a new moral shock.
Journal: Applied Economics
Pages: 4874-4885
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038366
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038366
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Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4874-4885
Template-Type: ReDIF-Article 1.0
Author-Name: Jayme V. Gerring
Author-X-Name-First: Jayme V.
Author-X-Name-Last: Gerring
Title: The Marvel effect: cinematic universes and their impact on box office receipts
Abstract:
This paper investigates the effects of cinematic universes in films on box office receipts using data from 250 films released between 2009 and 2019. Regarding the non-Marvel Cinematic Universes, there is a statistically significant impact on the opening weekend box office receipts, but the same is not true with respect to a filmʻs initial run. Alternatively, the Marvel Cinematic Universe has a statistically significant effect on box office receipts over opening weekend and during the filmʻs first run. In addition, female star power remains statistically significant with the inclusion of more independent variables while male and director star power become statistically insignificant regarding the opening weekend box office receipts.
Journal: Applied Economics
Pages: 4886-4899
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038775
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038775
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Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4886-4899
Template-Type: ReDIF-Article 1.0
Author-Name: Yifei Cai
Author-X-Name-First: Yifei
Author-X-Name-Last: Cai
Author-Name: Jamel Saadaoui
Author-X-Name-First: Jamel
Author-X-Name-Last: Saadaoui
Title: Fourier DF unit root test for R&D intensity of G7 countries
Abstract:
According to the Schumpeterian endogenous growth theory, the efficacy of R&D is lowered by the proliferation of products. To be consistent with empirical data, the ratio between innovative activity and product variety (also called R&D intensity) must be stationary. From this perspective, our contribution investigates whether the R&D intensity series is stationary when structural breaks are considered. Our sample of G7 countries is examined over the period spanning from 1870 to 2016. Our results indicate that traditional unit root tests (ADF, DF-GLS and KPSS) conclude that the R&D intensity series are non-stationary, in contradiction with the Schumpeterian endogenous growth theory. The conclusions of these traditional unit root tests may be misleading, as they ignore the presence of structural breaks. Indeed, we use several types of Fourier Dickey-Fuller tests to consider the presence of structural breaks. In the Fourier Dickey-Fuller unit root tests using double frequency and fractional frequency, the R&D intensity is significantly stationary at least at the 5% level for Canada, France, Germany, Italy and Japan when a deterministic trend is included in the tests. Nevertheless, the R&D intensity is non-stationary for the US, even when we consider structural breaks.
Journal: Applied Economics
Pages: 4900-4914
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038776
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038776
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Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4900-4914
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Abid Shahzad
Author-X-Name-First: Muhammad Abid
Author-X-Name-Last: Shahzad
Author-Name: Christian Fischer
Author-X-Name-First: Christian
Author-X-Name-Last: Fischer
Title: The decline of part-time farming in Europe: an empirical analysis of trends and determinants based on Eurostat panel data
Abstract:
This article studies the state of part-time farming in the European Union (EU) amidst recent developments in its agricultural structure. First, an in-depth descriptive analysis of the trends in farm other gainful activities (OGA) is delineated. Second, an econometric panel regression analysis employing fractional probit model is conducted to investigate the relationship between the share of OGA and different farmer and farm characteristics. The analysis utilizes a balanced panel of 27 EU countries extracted from the Eurostat database between 2005 and 2016. The results show that OGA as main activity significantly decreased between 2005 and 2016, whereas the proportion of sole holder-managers with OGA as secondary activity slightly increased. OGA are explained by economic needs and are mostly related to farm size and farm types with lower economic farm productivity. The main OGA are mainly related to farmer characteristics (e.g. age and gender). Secondary OGA are explained by farm specialization. These trends may continue into the future which may bring an even fewer number of larger, more specialized, and more professional farms that have little time to engage in other activities than their core business of farming.
Journal: Applied Economics
Pages: 4812-4824
Issue: 42
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2036687
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2036687
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Handle: RePEc:taf:applec:v:54:y:2022:i:42:p:4812-4824
Template-Type: ReDIF-Article 1.0
Author-Name: Svetlana Fedoseeva
Author-X-Name-First: Svetlana
Author-X-Name-Last: Fedoseeva
Author-Name: Rodrigo Zeidan
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Zeidan
Title: The US-China trade war and the emergence of market power in commodity markets
Abstract:
The article explores the indirect link between the trade war between China-US and deforestation in Brazil. China imposed tariffs that have eliminated American soy exports by November 2018. Higher soybean prices usually increase deforestation in Brazil. We estimate nonlinear autoregressive distributed lag models combined with multiple breakpoint tests to analyze price transmission changes over time. We show that market power emerges in the short run, while long-run price pass-through is close to complete. Extra profits from unexpected market power should induce land clearing for expanding soy production, a problem compounded by lax regulation, and reduced budgets for combating deforestation in Brazil. Results also suggest that effects on deforestation rates should be temporary. Given that the covid19 pandemic brings about a similar shock to global food markers, particularly demand for Brazilian soy, we expect a similar pattern of emergence of market power in the short but not long-run.
Journal: Applied Economics
Pages: 4952-4960
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039366
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039366
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Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4952-4960
Template-Type: ReDIF-Article 1.0
Author-Name: Gene Ambrocio
Author-X-Name-First: Gene
Author-X-Name-Last: Ambrocio
Title: Euro-area business confidence and COVID-19
Abstract:
I study the effects of the COVID-19 pandemic on business confidence in 11 Euro area countries and its impact on economic activity. To obtain causal effects, I instrument business confidence with domestic household confidence as well as household confidence in neighboring countries. I find evidence suggesting that the confidence channel was a sizable component to the economic transmission of COVID-19. A one standard deviation drop in business confidence leads to between 5–6 and 9% fall in economic activity in the industrial and wholesale and retail trade sectors, respectively. These results highlight the importance of managing confidence and expectations in crisis episodes.
Journal: Applied Economics
Pages: 4915-4929
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038777
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038777
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Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4915-4929
Template-Type: ReDIF-Article 1.0
Author-Name: Gergely Csurilla
Author-X-Name-First: Gergely
Author-X-Name-Last: Csurilla
Author-Name: Imre Fertő
Author-X-Name-First: Imre
Author-X-Name-Last: Fertő
Title: How long does a medal win last? Survival analysis of the duration of Olympic success
Abstract:
The aim of this article is to examine the factors that determine the durability of Olympic success at seven consecutive Summer Games between 1996 and 2021, employing survival analysis. It is assumed that factors similar to those that influence the durability of Olympic success also influence the likelihood of winning Olympic medals. We examine the durability of Olympic success at the level of sports for all medals, and for each type of medal. Our results suggest that a country can maintain its performance in a sport for an average of 2.1 Olympic Games. The Kaplan-Meier survival function shows that about 85% of spells fail after a single Games The GDP, host country, Communist past, the number of medals in a sport and the duration of preceding medal winning period are associated with successive medal-winning. Population size and the number of previous discontinuous medal wins decrease duration of Olympic success.
Journal: Applied Economics
Pages: 5006-5020
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039370
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039370
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Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:5006-5020
Template-Type: ReDIF-Article 1.0
Author-Name: Jie Ma
Author-X-Name-First: Jie
Author-X-Name-Last: Ma
Author-Name: Xiaojun Yang
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Yang
Title: Intra-Generational upward mobility and fertility: evidence from transition countries
Abstract:
We examine the role of intra-generational upward mobility (hereafter upward mobility) in determining the fertility of transition countries. Upward mobility can increase fertility through a positive income effect. It can also reduce the value of children’s support during parents’ elderly years as parents expect to have more resources in the future. Transition countries have experienced large socio-economic changes since the early 1990s and have highly varied economic conditions, including upward mobility. Using data from the Life in Transition Survey, we find that upward mobility increases fertility and the effect is robust to different model specifications. This result is consistent with a dominating income effect. Our findings point out the importance of considering upward mobility to boost fertility which has significant implications for demographic policy.
Journal: Applied Economics
Pages: 4991-5005
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039369
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039369
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Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4991-5005
Template-Type: ReDIF-Article 1.0
Author-Name: Imran Arif
Author-X-Name-First: Imran
Author-X-Name-Last: Arif
Title: Regional club convergence: Evidence from U.S. metropolitan-level data
Abstract:
In this paper, we analyze income per capita absolute and club convergence of 383 metropolitan areas of the U.S. To our knowledge, we are the first to provide club convergence analysis of income per capita at the metropolitan area-level. Using data for 1969–2017 containing 18,767 observations, we employ a data-driven convergence model that also allows heterogeneity in the panel. We demonstrate evidence of the absence of absolute convergence and the presence of club convergence. Furthermore, we use the ordered logit model to analyze the economic, demographic, and several other factors influencing club membership. Our results reveal a diversity of growth experiences across the U.S. metropolitan areas by extensively accounting for heterogeneity using a novel transition dynamic modeling framework.
Journal: Applied Economics
Pages: 4979-4990
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039368
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039368
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Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4979-4990
Template-Type: ReDIF-Article 1.0
Author-Name: Kun Su
Author-X-Name-First: Kun
Author-X-Name-Last: Su
Title: Religion, government intervention and crash risk: lessons from China
Abstract:
The determinants of stock price crash risk remain unclear, especially in transitional economies. Using firm-level data of listed firms in China from 2003 to 2016, we investigate the association between religion and stock price crash risk, as well as the moderating effects of government intervention in Chinese context. Our empirical results show that religious atmosphere in a region alleviates the local firm managerʻs incentive to hide bad news, and thereby potentially reduces stock price crash risk in Chinese context. We also find that the above effect is less pronounced in regions with high government intervention.
Journal: Applied Economics
Pages: 4930-4951
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2038778
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2038778
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Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4930-4951
Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Chao Wang
Author-X-Name-First: Yang-Chao
Author-X-Name-Last: Wang
Author-Name: Jui-Jung Tsai
Author-X-Name-First: Jui-Jung
Author-X-Name-Last: Tsai
Author-Name: En You
Author-X-Name-First: En
Author-X-Name-Last: You
Title: The impact of RMB internationalization on the exchange rate linkages in China and ASEAN countries
Abstract:
This study uses the DCC-GARCH model to analyze the impact of RMB internationalization on exchange rate linkages in China and four ASEAN countries (Malaysia, Thailand, Philippines, and Indonesia) from 2009 to 2020. The results show that China, as the largest trading partner of ASEAN, has made exchange rate transmission very close between the two economic entities. In the process of RMB internationalization, exchange rate linkages exhibit varying characteristics in distinct stages. In the early stage, the direction of RMB internationalization was unclear, and exchange rate linkages were affected by international capital flows. Afterward, the RMB internationalization, combined with the Belt and Road Initiative, was gradually clarified, promoting a unilateral increase in RMB currency value and a decrease in the linkage level. With the implementation of the initiative, the dividends gradually spread to the four ASEAN countries, bringing the linkages to a peak. Subsequently, unilateral exchange rate reforms of the RMB, such as the ‘811 exchange rate reform,ʻ reduced linkages. After 2017, the cumulative effects of the reforms in the previous period appear. The RMB internationalization has taken shape in ASEAN, and the stability of the exchange rate linkages has been greatly improved.
Journal: Applied Economics
Pages: 4961-4978
Issue: 43
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2039367
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2039367
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Handle: RePEc:taf:applec:v:54:y:2022:i:43:p:4961-4978
Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver1343173020271163298.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Anastasia Cozarenco
Author-X-Name-First: Anastasia
Author-X-Name-Last: Cozarenco
Author-Name: Valentina Hartarska
Author-X-Name-First: Valentina
Author-X-Name-Last: Hartarska
Author-Name: Ariane Szafarz
Author-X-Name-First: Ariane
Author-X-Name-Last: Szafarz
Title: Subsidies to microfinance institutions: how do they affect cost efficiency and mission drift?
Abstract:
The costs and benefits of subsidized microfinance are still controversial. We utilize a cost-function estimation approach that accounts for the double bottom line (social and financial) of microfinance institutions (MFIs) to evaluate how subsidies affect both cost efficiency and risk of mission drift. We control for endogenous self-selection into the business models of credit-only versus credit-plus-deposit. Our results suggest that MFIs that both supply loans and collect deposits need no subsidies to be cost-efficient. In addition, subsidies to these MFIs are associated with an increase in deposit size, which might hurt the most disadvantaged depositors. In sum, combining subsidized funds from donors with deposits increases the risk of mission drift, and can therefore be socially undesirable.
Journal: Applied Economics
Pages: 5099-5132
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041176
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041176
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Handle: RePEc:taf:applec:v:54:y:2022:i:44:p:5099-5132
Template-Type: ReDIF-Article 1.0
# input file: catalog-resolver-7408340582535660073.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Yu Lin
Author-X-Name-First: Yu
Author-X-Name-Last: Lin
Author-Name: Xiangyi Chang
Author-X-Name-First: Xiangyi
Author-X-Name-Last: Chang
Author-Name: Yingjie Shi
Author-X-Name-First: Yingjie
Author-X-Name-Last: Shi
Title: Interaction of capacity utilization and inventory efficiency: the moderating role of information sharing
Abstract:
This paper is aimed at verifying the existence of the systematic contradictions between inventory efficiency (IE) and capacity utilization (CU), two critical indicators of firm performance, in the manufacturing industry and the role of information sharing with supply chain partners in weakening the contradictions through empirical analysis. Raw material and finished goods inventory are studied respectively, and the underlying mechanism is established for each. With a cross-sectional dataset, we estimate systems of simultaneous equations with the three-stage least square (3SLS) method to investigate the interacting effects and further conduct the estimation on subsamples grouped by the moderator to study the moderating effects. The study confirms a significant two-way negative relationship between IE and CU and documents a significant negative moderating effect of sharing demand forecast with raw material suppliers on the interaction between raw material inventory efficiency (RMIE) and CU. The findings suggest managers keep in mind that the two operational objectives cannot be achieved at the same time dealing with supply chain uncertainty and take into account the costs and benefits of capacity and inventory when choosing strategies. They can also improve this situation by cooperating with supply chain partners to share information like demand forecast with them.
Journal: Applied Economics
Pages: 5050-5072
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2040727
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2040727
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# input file: catalog-resolver-1543061607110647264.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Ganghua Mei
Author-X-Name-First: Ganghua
Author-X-Name-Last: Mei
Author-Name: Lei Yue
Author-X-Name-First: Lei
Author-X-Name-Last: Yue
Title: Labor supply and time use: evidence from cohabiting women in the United States
Abstract:
The population of unmarried heterosexual cohabiting women has nearly tripled in the US over the past two decades. While previous studies have tended to ignore these women, or treat them as single/married, this paper examines the labor supply responses of cohabiting women, single women, and married women from 1996 to 2016 using March-CPS. A comparison of the three groups finds that cohabiting women have the lowest labor force participation elasticity with respect to after-tax wages. That cohabiting women would work more hours if their partners earned more annually and married women would not, points to another behavioral difference between the two groups. Results from ATUS-CPS 2003–2017 further imply that cohabiting women share some of the same characteristics of single and married women. We conclude that unmarried heterosexual cohabiting women should be classified as a separate female group.
Journal: Applied Economics
Pages: 5133-5158
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041177
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041177
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# input file: catalog-resolver4069505895705775540.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Kabir Dasgupta
Author-X-Name-First: Kabir
Author-X-Name-Last: Dasgupta
Author-Name: Keshar M. Ghimire
Author-X-Name-First: Keshar M.
Author-X-Name-Last: Ghimire
Author-Name: Gail Pacheco
Author-X-Name-First: Gail
Author-X-Name-Last: Pacheco
Title: How heavy is the price of smoking? Estimating the effects of prenatal smoking on child weight outcomes
Abstract:
Existing evidence suggests that maternal smoking during pregnancy leads to a decline in birthweight and a higher risk of obesity during early childhood years. However, the causal nature of the latter relationship is not credibly established. This study advances the literature by estimating the causal impact of motherʻs smoking during pregnancy on child bodyweight outcomes, from birth through age five. We use a nationally representative sample of children and mothers from the United States National Longitudinal Surveys. We model childrenʻs body weight as a function of motherʻs smoking during pregnancy. Our identification technique utilizes the instrumental variable strategy to exploit plausibly exogenous variation in smoking behaviour of mothers prompted by changes in federal and state-level tobacco tax rates at the time of conception. Consistent with prior literature, our instrumental variable estimates suggest children of smokers weigh significantly less at birth than children of nonsmokers (an estimated decline of 0.53 kg). However, there is no credible evidence that these children are more likely to be overweight during early childhood.
Journal: Applied Economics
Pages: 5159-5175
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041178
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041178
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# input file: catalog-resolver8138435640498211983.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Jagriti Srivastava
Author-X-Name-First: Jagriti
Author-X-Name-Last: Srivastava
Author-Name: Balagopal Gopalakrishnan
Author-X-Name-First: Balagopal
Author-X-Name-Last: Gopalakrishnan
Title: Work from home amenability and venture capital financing during COVID-19
Abstract:
This paper examines the impact of COVID-19 on venture capital financing of firms. We find a significant shift in the profile of firms that obtain venture capital financing during the pandemic-induced economic crisis. Firms in industries that are more amenable to work from home obtain greater amounts of financing. Growth-stage firms operating in amenable industries are able to obtain higher financing than early-stage firms. The higher financing obtained by firms in amenable industries is driven by venture capital funds focused on the domestic market. Additionally, the higher financing is obtained from a single venture capital investor rather than a consortia of investors. Taken together, the preference of venture capital funds indicate a less risk-averse behavior in financing firms amenable to remote working. The findings of our study using monthly firm-level data provide insights on venture capital financing during the pandemic.
Journal: Applied Economics
Pages: 5073-5098
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041175
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041175
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# input file: catalog-resolver7030768556793575949.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Yanfeng Wei
Author-X-Name-First: Yanfeng
Author-X-Name-Last: Wei
Author-Name: Xiaoying Guo
Author-X-Name-First: Xiaoying
Author-X-Name-Last: Guo
Title: The impact of oil supply shocks on real economic activity: new evidence based on the proxy SVARs
Abstract:
The existing literature on the impact of oil supply shocks on real economic activity after the mid-1980s still fails to reach an agreement. This may be partly due to different identification assumptions and model specifications corresponding to the oil supply shock, and partly due to the oil supply shock identified previously is endogenous to real economic activity. In this paper, based on the proxy structural vector autoregressions (SAVRs), we identify an oil supply shock that is exogenous to real economic activity, and then study the impact of this shock on U.S. real economic activity. We find exogenous oil supply shocks have a very large and persistent impact on U.S. real economic activity after the mid-1980s. Besides, several new possible transmission channels through which exogenous oil supply shocks can influence U.S. real GDP are detected. Specifically, unfavorable exogenous oil supply shocks can lower the consumer sentiment index (CSI) and consumer confidence index (CCI), decrease real net exports of goods and services (NEGS) through the terms of trade (TOT) effect, and reduce real government consumption expenditures and gross investment of state and local (GCEGISL), thus leading to a decline in real GDP. These newly detected transmission channels are very important for policymakers.
Journal: Applied Economics
Pages: 5035-5049
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2035312
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2035312
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# input file: catalog-resolver6346862861919302248.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220713T202513 git hash: 99d3863004
Author-Name: Zs. Koczan
Author-X-Name-First: Zs.
Author-X-Name-Last: Koczan
Title: Not all in this together? Early estimates of the unequal labour market effects of Covid-19
Abstract:
Recent studies have highlighted the unequal labor market effects of the Covid-19 crisis in advanced economies, while studies focusing on developing economies pointed to increases in poverty. We contribute to these literatures by drawing on a new survey of almost 40,000 adults in 14 advanced as well as emerging economies conducted in August 2020. We show that while labor market impacts are, on average, more severe in emerging markets, these are less unequally distributed than in advanced economies. We document that job losses in emerging markets are also concentrated among the young, less educated and those with lower levels of income before the pandemic. However, we find that the likelihood of job losses falls less sharply with income in emerging markets than in advanced economies. Drawing on a similar survey conducted in 2010 we show that, unlike the Global Financial Crisis, the Covid-19 crisis disproportionately hit women. Job losses also appear to be more concentrated among the young now than during the Global Financial Crisis.
Journal: Applied Economics
Pages: 5021-5034
Issue: 44
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2035311
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2035311
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# input file: RAEC_A_2041180_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Solikin M. Juhro
Author-X-Name-First: Solikin M.
Author-X-Name-Last: Juhro
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Bernard Njindan Iyke
Author-X-Name-First: Bernard Njindan
Author-X-Name-Last: Iyke
Title: Understanding monetary and fiscal policy rule interactions in Indonesia
Abstract:
We examine the interaction of monetary and fiscal policies in Indonesia from 1974Q2 to 2019Q1. Within a standard structural vector autoregression framework, we show that the reactions of the policy rules are consistent with theoretical predictions. For instance, a contractionary monetary policy is trailed by a contractionary fiscal policy with lower government expenditure. We extend the analysis to evaluate the interaction of policy rules during active and passive regimes. We show that monetary and fiscal policies are not synchronized over the full sample period, suggesting structural and institutional rigidities, particularly in the past. Restricting the sample to a recent period, we find the policies are more harmonized. We attribute this to the recent joint policy coordination initiatives between the monetary and fiscal authorities.
Journal: Applied Economics
Pages: 5190-5208
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041180
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041180
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# input file: RAEC_A_2041183_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Xingquan Yang
Author-X-Name-First: Xingquan
Author-X-Name-Last: Yang
Author-Name: Chunyang Lu
Author-X-Name-First: Chunyang
Author-X-Name-Last: Lu
Author-Name: Zheng Yang
Author-X-Name-First: Zheng
Author-X-Name-Last: Yang
Title: Capital-Market Liberalization and Controlling Shareholders’ Tunneling—Experimental Research in the Context of “Mainland China-Hong Kong Stock Connect”
Abstract:
Foreign investors attracted by capital-market liberalization may either inhibit controlling shareholdersʻ tunneling due to the influence of ‘long-term value investmentʻ or exacerbate it due to the effect of ‘short-term price speculation.ʻ Therefore, it is unclear whether and how capital-market liberalization will eventually influence controlling shareholdersʻ tunneling. We take the implementation of Shanghai-Hong Kong Stock Connect (SHHKSC) and Shenzhen-Hong Kong Stock Connect (SZHKSC) in Chinaʻs capital market as a quasi-natural experiment and use a difference-in-differences (DID) model to identify the causal effect of capital-market liberalization on controlling shareholdersʻ tunneling. The results show that capital-market liberalization significantly reduces controlling shareholdersʻ tunneling. Improving the quality of information disclosure and corporate governance as the predominant channels that allow capital-market liberalization to reduce controlling shareholdersʻ tunneling. Further analysis shows that the effect is more pronounced when companies are private, when the level of external marketization is low and when product market competition is weak. This study enriches and supplements the literature that the impact of capital-market liberalization on the real economy and provides policy insights. Regulators should improve the supervision of information disclosure and corporate governance to decrease controlling shareholdersʻ tunneling. (Jel codes:D82;G34;G38)
Journal: Applied Economics
Pages: 5241-5256
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041183
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041183
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# input file: RAEC_A_2041184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Luca Bettarelli
Author-X-Name-First: Luca
Author-X-Name-Last: Bettarelli
Author-Name: Laura Resmini
Author-X-Name-First: Laura
Author-X-Name-Last: Resmini
Title: The determinants of FDI: a new network-based approach
Abstract:
This article investigates the determinants of FDI at sub-national level. It recognizes that MNEsʻ foreign activities are organized in networks of strongly interconnected, but geographically dispersed affiliates. This implies a different approach to the analysis of the determinants of FDI, which should focus on contextual factors able to stimulate economic relations at distance. Methodologically, we use a gravity-type model and different regression techniques with a new dataset on networks of FDI involving German and Italian regions. We find evidence that technologically proximate regions sharing the same industry profile are more likely to experience positive and large networks driven by MNEs, with weaker evidence related to cultural and institutional proximities, which cannot compensate the negative impact of geographic distance. The distinctive contribution of this paper is to emphasize that local policies to attract FDI are more likely to succeed if addressed to similar regions.
Journal: Applied Economics
Pages: 5257-5272
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041184
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041184
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# input file: RAEC_A_2041181_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Jared Barton
Author-X-Name-First: Jared
Author-X-Name-Last: Barton
Author-Name: Xiaofei Pan
Author-X-Name-First: Xiaofei
Author-X-Name-Last: Pan
Title: Relatively accurate but absolutely off: U.S. residents’ estimates of relative and absolute economic mobility
Abstract:
Using results from two treatment arms of a larger nationwide survey experiment in the United States, we add evidence on how Americans perceive social mobility. In one arm, respondents estimate both upward and downward relative economic mobility, while in the other, respondents estimate the absolute economic mobility (that is, do children out-earn their parents?) for each quintile of the parental income distribution. This latter question has been overlooked in the literature. We find respondentsʻ average estimates of relative downward mobility to be remarkably close to reality. The average estimate of relative upward mobility is also close, though both estimates underestimate relative mobility. There are small partisan differences in accuracy on relative mobility, with Republican-leaning respondents providing the most accurate estimates, but respondentsʻ perception of absolute mobility significantly underestimate (overestimate) mobility for the poorest (highest-income) children irrespective of partisan affiliation. Our results provide important insights on the implementation of redistribution policies.
Journal: Applied Economics
Pages: 5209-5222
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041181
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041181
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# input file: RAEC_A_2041179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Chandan Sharma
Author-X-Name-First: Chandan
Author-X-Name-Last: Sharma
Author-Name: Rupika Khanna
Author-X-Name-First: Rupika
Author-X-Name-Last: Khanna
Title: Assessing asymmetric determinants of commodity-level exports: the role of policy responses to the COVID-19 pandemic
Abstract:
This paper explores the economic consequences of non-pharmaceutical government intervention to curb disease spread on Indian commodity-level exports. This is the first study to assess the export implications of the pandemic using a panel linear as well as a novel non-linear ARDL framework. Our results show that pandemic-related stringencies have a positive effect on Indian exports in the long-run. This result holds valid for domestic as well export destination countriesʻ stringencies. However, our evidence suggests that reducing stringencies has a more dominating effect on Indian exports than tightening of stringencies. Also, stringencies and uncertainty impact exports adversely in the short-run. Furthermore, pandemic-related financial uncertainty is found to have a dampening effect on exporting. Our results also show a significant asymmetric impact of policy responses on exports, especially for agriculture and manufacturing commodities, while mineral products are relatively less impacted.
Journal: Applied Economics
Pages: 5176-5189
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041179
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041179
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# input file: RAEC_A_2041182_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Swati Sharma
Author-X-Name-First: Swati
Author-X-Name-Last: Sharma
Author-Name: Amaresh Dubey
Author-X-Name-First: Amaresh
Author-X-Name-Last: Dubey
Title: Like father, like son: does migration experienced during child schooling affect mobility?
Abstract:
Using a sample of 39,297 father-son pairs from Indian Human Development Surveys (IHDS), we examine whether migration experienced during child schooling affects the relationship between parent and child education. We relax the co-residency restriction for father-son pairs to obviate coresident sample selection bias in our mobility estimates. The panel structure of data enables us to identify children who were enrolled in school at the time when their families migrated. We find that migration experienced during schooling increases downward mobility. In particular, those children who were young at the time of migration tend to have poor educational outcomes. We show that widely cited aggregate measures of mobility provide an incomplete representation of intergenerational persistence in India, as most of the persistence originates from the tails of the educational distribution. The sons of the least educated fathers have poor prospects of upward mobility and face a glass ceiling in higher education. We use heteroscedasticity-based identification and Rosenbaumʻs sensitivity analysis to account for unobserved heterogeneity.
Journal: Applied Economics
Pages: 5223-5240
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2041182
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2041182
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# input file: RAEC_A_2042465_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Qundi Feng
Author-X-Name-First: Qundi
Author-X-Name-Last: Feng
Author-Name: Qinying He
Author-X-Name-First: Qinying
Author-X-Name-Last: He
Author-Name: Chung-Ping A. Loh
Author-X-Name-First: Chung-Ping A.
Author-X-Name-Last: Loh
Title: The effect of childhood left‑behind experience on individual’s income: evidence from China
Abstract:
Childhood circumstances may have a long-term impact on individual life-cycle outcomes. Using data from the China Health and Nutrition Survey, we explore the long-term effect of childhood left-behind experience due to parental rural-to-urban migration. The extended regression model is employed to address the potential endogeneity of being left-behind children with an instrument variable. The results indicate that the left-behind experience in childhood leads to a significantly lower income in adulthood. Robustness checks using the probability of being relative poverty validate our findings. Mechanism analysis shows that parental migration would reduce household income per capita, childrenʻs health outcomes, and the probability of enrolling in post-compulsory education, which were the possible channels. Our analysis highlights the long-term consequences of childhood left-behind experience, which suggests the need for preventive intervention to improve the early development of left-behind children and throughout the life course.
Journal: Applied Economics
Pages: 5273-5286
Issue: 45
Volume: 54
Year: 2022
Month: 09
X-DOI: 10.1080/00036846.2022.2042465
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042465
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# input file: RAEC_A_2042480_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Chao Zhang
Author-X-Name-First: Chao
Author-X-Name-Last: Zhang
Author-Name: Lifang Chen
Author-X-Name-First: Lifang
Author-X-Name-Last: Chen
Author-Name: Huasheng Song
Author-X-Name-First: Huasheng
Author-X-Name-Last: Song
Title: The impact of social security contributions on corporate innovation: evidence from the contribution collection reform in China
Abstract:
This paper identifies a positive causal effect of social security contributions on corporate innovation by exploiting the staggered passage of social contributions collection reforms in China. The collection of social security contributions was switched from social security institutions to tax authorities in Chinese provinces that have adopted collection reforms, which reduced employer-borne contributions. Our results indicate that a decrease in employer social security contributions induces an increase in the demand for labor by making labor less costly, subsequently discouraging labor-saving innovation. Moreover, the response of the innovation to the reforms is stronger for labor-intensive firms and non-state-owned enterprises.
Journal: Applied Economics
Pages: 5320-5334
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2042480
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042480
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# input file: RAEC_A_2044994_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Yao-Tung Chen
Author-X-Name-First: Yao-Tung
Author-X-Name-Last: Chen
Author-Name: Sheng-Chang Peng
Author-X-Name-First: Sheng-Chang
Author-X-Name-Last: Peng
Title: Information asymmetry in medical insurance: an empirical study of one life insurance company in Taiwan
Abstract:
Based on the data from one anonymous but renowned life insurance company in Taiwan, this paper focuses on a big data analysis using R programming language while adhering to the requisite conditions for the validity of using regression model to test the existence of the issue of information asymmetry in medical insurance. The log-linear regression model is adopted to fit with the data set and it is shown: There is a significantly non-linear positive relationship between the compensations and the insurance coverage, indicating that the issue of information asymmetry does exist among those claimants under discussion; the older those claimants were insured, the more they claimed; women claimed more medical compensation than men; those paying premiums quarterly claimed the highest.
Journal: Applied Economics
Pages: 5351-5356
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044994
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044994
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# input file: RAEC_A_2042479_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Luz Mariel Bustamante-Ayala
Author-X-Name-First: Luz Mariel
Author-X-Name-Last: Bustamante-Ayala
Author-Name: Gerardo Angeles Castro
Author-X-Name-First: Gerardo
Author-X-Name-Last: Angeles Castro
Author-Name: José Teran-Vargas
Author-X-Name-First: José
Author-X-Name-Last: Teran-Vargas
Title: The financial sector structure and performance and its impact on the Mexican economy: a perspective from the Financial Social Accounting Matrix
Abstract:
The study of the financial system, within the context of a Social Accounting Matrix, to identify its potential contribution to the economy and the linkages between the financial and productive sectors, is a topic barely explored, especially in emerging economies. This paper presents the construction of a Financial Social Accounting Matrix for the case of Mexico for the year 2013, using the Top-Down approach. It also presents an analytical tool through multipliers and impact simulations to understand the interconnection of income and expenditure transactions between sectors of the economy, into the intersectoral framework of financial sector flows and funds, identifying which sectors are creditors or debtors. We find that despite encouraging strategic sectors and allocating income to financial companies, the impact generated on other productive sectors is weak. Real estate services is the subsector that generates more monetary units for each exogenous monetary unit received. The methodology can be applied to assess the effects of impact simulations for planning policy, such as knowing the strategic sectors of the economy with greater linkages, and the possibility to assign and redirect financing to promote the consumption and investment capacity of both companies and households.
Journal: Applied Economics
Pages: 5305-5319
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2042479
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042479
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Handle: RePEc:taf:applec:v:54:y:2022:i:46:p:5305-5319
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# input file: RAEC_A_2042478_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Arief Rasyid
Author-X-Name-First: Arief
Author-X-Name-Last: Rasyid
Author-Name: Jason Nassios
Author-X-Name-First: Jason
Author-X-Name-Last: Nassios
Author-Name: Elizabeth L. Roos
Author-X-Name-First: Elizabeth L.
Author-X-Name-Last: Roos
Author-Name: James A. Giesecke
Author-X-Name-First: James A.
Author-X-Name-Last: Giesecke
Title: Assessing the economy-wide impacts of strengthened bank capital requirements in Indonesia using a financial computable general equilibrium model
Abstract:
After the 2008 global financial crisis, authorities across the globe stressed the importance of equity capital to absorb losses. While many countries have raised bank capital adequacy requirements (CARs), the comprehensive impact assessment of this policy for emerging economies remains largely unexplored. We use a financial computable general equilibrium (FCGE) model of Indonesia called AMELIA-F to investigate the economy-wide impact of a 100 basis points increase in the CAR of Indonesian banks. Bank balance sheets contract as they move away from holding riskier assets, aiding macroeconomic stability. However, both non-housing and housing investment contract as banks pass on higher funding costs, driving long-run real GDP below baseline. As we discuss, debt-to-equity ratios for these sectors, and the economy-wide private debt to income ratio all fall, thus aiding long-run macroeconomic stability.
Journal: Applied Economics
Pages: 5287-5304
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2042478
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042478
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# input file: RAEC_A_2044995_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Sandrine Kablan
Author-X-Name-First: Sandrine
Author-X-Name-Last: Kablan
Author-Name: Valérie Chouard
Author-X-Name-First: Valérie
Author-X-Name-Last: Chouard
Title: Does climate aid matter for reducing CO2 emissions? The case of foreign aid for renewable energy
Abstract:
This article aims to investigate how climate aid devoted to renewable energy contributes to CO2 emissions in recipient countries. Indeed, since the beginning of the 2000s, international agreements between developed and developing countries have promoted the provision of financial aid to the second group of countries to help them fight global warming. We first discuss stylized facts on climate finance devoted to renewable energy and its impact on CO2 emissions. We can see that while the first variable is quickly increasing, the second variable displays a decrease from 2010. Econometric results show that climate aid for renewable energy has a slight impact on CO2 emissions reduction, especially after a threshold. However, despite this optimistic result, the impact is transitory. Indeed, this result can be explained by the fact that developing countries are more preoccupied by economic efficiency than ecological efficiency. However, in countries where a carbon tax is set, the tax contributes to reducing CO2 emissions. Finally, we show that ecological technologies imported through foreign direct investment do not yet play a significant role in reducing CO2 emissions or CO2 intensity.
Journal: Applied Economics
Pages: 5357-5372
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044995
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044995
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# input file: RAEC_A_2044012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Todd Gabel
Author-X-Name-First: Todd
Author-X-Name-Last: Gabel
Title: Canadian welfare reform and the importance of entry
Abstract:
Since 1993, many Canadian provinces reformed their welfare systems with the twin goals of reducing costs and increasing the self-sufficiency of its participants. Different classifications of these policies are presented, and a welfare reform policy bundle is proposed. Using a novel dynamic panel model approach, which accommodates for past participation in driving future participation choices, it is found that welfare reform reduced participation rates by about 0.7% points (or about 10.3% relative to the unconditional mean rate of participation). This effect size is smaller than those reported in studies using static models, suggesting welfare reform may have previously gained additional ‘credit’ for reducing welfare caseloads by absorbing the effect of prior nonparticipation. Using a set of transition models, it is then shown that these declines in participation were achieved by reducing the probability of welfare entry.
Journal: Applied Economics
Pages: 5335-5350
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044012
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044012
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# input file: RAEC_A_2044996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Hideaki Sakawa
Author-X-Name-First: Hideaki
Author-X-Name-Last: Sakawa
Author-Name: Naoki Watanabel
Author-X-Name-First: Naoki
Author-X-Name-Last: Watanabel
Title: Impact of the COVID‑19 outbreak on stock market returns: Evidence from Japanese‑listed tourism firms
Abstract:
This study analyzes Japanese tourism firms’ stock market response to the announcement of the COVID-19 outbreak in China. We also aim to reveal the impact of government policy response on the relationship between the effect of the COVID-19 outbreak and Japanese tourism stock returns. We adopt the event study method to analyze the negative impact of the outbreak on Japanese tourism abnormal stock returns (ARs). We found that the lockdown announcements in Wuhan were significantly negative for stock market returns in Japanese tourism and travel-related stocks. Moreover, there is a negative relationship between government response and Japanese tourism stock returns. Finally, the government response weakens the negative relationship between the COVID-19 cases and ARs in Japanese tourism and travel-related industries. Our results imply that the government response is useful in mitigating the negative impact on the relationship between the COVID-19 cases and ARs in the early stages of the outbreak. This study contributes to the design of effective government strategies for future pandemics.
Journal: Applied Economics
Pages: 5373-5377
Issue: 46
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044996
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044996
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# input file: RAEC_A_2044997_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Raquel Langarita
Author-X-Name-First: Raquel
Author-X-Name-Last: Langarita
Author-Name: Ignacio Cazcarro
Author-X-Name-First: Ignacio
Author-X-Name-Last: Cazcarro
Title: The socio-economic impact of sports tourism events in rural areas and losses from COVID19: a case study in Spain
Abstract:
This work evaluates the effects that several outdoor ‘popular’ sports events, held in the province of Huesca, had on production and employment in the Aragonese economy (a European region in Northeast Spain). We use data from 880 questionnaires responded to by participants of the most significant and recent sporting events held in Huesca. The data have been used to build a vector of final demand increases. For the analysis, we update the input-output table for Aragon from the last one available, from 2005 to 2010. Using the input-output methodology, the results suggest positive effects on production and employment in most sectors (estimated to be about equal to current losses from not having these events, due to COVID19) The events under examination are typically 1-day affairs and have relatively low costs (registration income surpasses costs, and typically use public unused/unsaturated spaces).
Journal: Applied Economics
Pages: 5378-5392
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044997
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044997
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# input file: RAEC_A_2045000_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Mustafa Kamal
Author-X-Name-First: Mustafa
Author-X-Name-Last: Kamal
Author-Name: Paul Blacklow
Author-X-Name-First: Paul
Author-X-Name-Last: Blacklow
Title: Attitudes and personality in the Australian gender wage gap
Abstract:
This paper estimates the effects of gender role attitudes and personality traits on the gender wage gap in Australia. Applying standard decomposition techniques and controlling for a wide range of variables, the paper finds that at least 67.8% of the total gender wage gap of 17.4% in 2019 remains unexplained – a figure which is lower than previous years. The results establish gender role attitudes as a key predictor of this pay gap both in the explained and unexplained part of the wage decomposition. It also shows that the impact of personality traits depends on whether the big five traits or the sub-traits are used in the analysis. Even some of the sub-traits belonging to the same category can influence the gender pay gap in opposite directions. Overall, the estimates establish the importance of psychological variables as more important than traditional human capital and other work-related characteristics in explaining the remaining gender wage gap in Australia.
Journal: Applied Economics
Pages: 5442-5459
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2045000
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2045000
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# input file: RAEC_A_2044999_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Joseph Goeb
Author-X-Name-First: Joseph
Author-X-Name-Last: Goeb
Author-Name: Mywish Maredia
Author-X-Name-First: Mywish
Author-X-Name-Last: Maredia
Author-Name: Khin Zin Win
Author-X-Name-First: Khin Zin
Author-X-Name-Last: Win
Author-Name: Ian Masias
Author-X-Name-First: Ian
Author-X-Name-Last: Masias
Author-Name: Isabel Lambrecht
Author-X-Name-First: Isabel
Author-X-Name-Last: Lambrecht
Author-Name: Duncan Boughton
Author-X-Name-First: Duncan
Author-X-Name-Last: Boughton
Author-Name: Bart Minten
Author-X-Name-First: Bart
Author-X-Name-Last: Minten
Title: Urban food prices under lockdown: evidence from Myanmar’s traditional food retail sector during COVID-19
Abstract:
Many governments imposed stringent lockdowns during the COVID-19 pandemic. With consumer incomes already depressed, the potential impacts of these measures on urban food prices are of particular concern, especially for poor or vulnerable households. This paper examines changes in urban food prices during lockdown using detailed food price data from family-owned retail shops – an important urban food supplier – in Myanmar’s two largest cities, Yangon and Mandalay. We find that the supply side of Myanmar’s traditional food retail sector was largely resilient to the shocks and lockdowns over the first six months of the COVID-19 pandemic. Estimates from a fixed effects difference-in-differences model reveal that food prices were 3% higher in townships under lockdown compared to those not under lockdown. Price differences were largest for raw or lightly processed commodities sourced through wholesale markets, which comprise a larger share of urban consumer’s diets. We find no evidence of price gouging as retailer margins were not significantly different under lockdown restrictions. Our results suggest that the traditional food retail sector is an asset for food security, particularly in times of crisis.
Journal: Applied Economics
Pages: 5412-5441
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044999
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044999
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# input file: RAEC_A_2047595_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Karel Hrazdil
Author-X-Name-First: Karel
Author-X-Name-Last: Hrazdil
Author-Name: Jeong Bon Kim
Author-X-Name-First: Jeong Bon
Author-X-Name-Last: Kim
Author-Name: Xin Li
Author-X-Name-First: Xin
Author-X-Name-Last: Li
Title: How do chief executive officers with pilot status navigate through corporate social responsibility?
Abstract:
We investigate whether and how managerial risk-tolerance at the individual level affects corporate social responsibility (CSR) performance at company level. We use CEO aviation training as an observable ex-ante measure of CEO risk-tolerance. Contrary to a commonly held view, we show that firms led by CEOs with pilot status exhibit lower CSR performance. This finding holds even after controlling for CEO pay–performance incentives, military experience, overconfidence and other CEO and firm characteristics that prior studies document as affecting CSR performance. In further cross-sectional tests, we show that when a firm is R&D intensive, belongs to a high-tech industry, or faces fiercer product market competition, the negative effect of CEO risk-tolerance on CSR performance is more pronounced, suggesting that CSR may act as an insurance or risk-hedging tool. Overall, we provide evidence that risk-tolerance of CEO plays a significant role in shaping CSR performance.
Journal: Applied Economics
Pages: 5460-5475
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047595
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047595
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# input file: RAEC_A_2047597_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Muhammad Ansar Majeed
Author-X-Name-First: Muhammad Ansar
Author-X-Name-Last: Majeed
Author-Name: Chao Yan
Author-X-Name-First: Chao
Author-X-Name-Last: Yan
Title: Financial statement comparability and stock liquidity: evidence from China
Abstract:
This study examines the effect of financial statement comparability on stock liquidity. Drawing from information asymmetry arguments, we posit that greater comparability increases financial transparency, which improves the information environment and increases stock liquidity. Our results show a positive relationship between comparability and stock liquidity. However, the effect of comparability on stock liquidity is only significant for non state-owned enterprises. Additionally, institutional ownership strengthens the impact of comparability on stock liquidity. Our findings suggest a more pronounced comparability effect on stock liquidity for firms with greater information opacity. Overall, our study indicates that higher comparability decreases information asymmetry and facilitates investors’ decision-making.
Journal: Applied Economics
Pages: 5497-5514
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047597
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047597
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# input file: RAEC_A_2044998_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Hassan F. Gholipour
Author-X-Name-First: Hassan F.
Author-X-Name-Last: Gholipour
Author-Name: Amir Arjomandi
Author-X-Name-First: Amir
Author-X-Name-Last: Arjomandi
Author-Name: Mohammad Reza Farzanegan
Author-X-Name-First: Mohammad Reza
Author-X-Name-Last: Farzanegan
Author-Name: Sharon Yam
Author-X-Name-First: Sharon
Author-X-Name-Last: Yam
Title: Global and local economic uncertainties and office vacancy in Australia: a sub-class analysis
Abstract:
Motivated by uncertainties caused by the COVID-19 pandemic, this study examines how office vacancy ratios (for premium, A, B, C and D-grade spaces) in Australia respond to shocks in global and local economic uncertainties. Using semiannual data from 1998 to 2020 and applying the vector autoregression (VAR) model, our results suggest that office vacancy ratios respond positively to economic uncertainty shocks in general, and especially to local economic uncertainty. Moreover, our sub-class analyses show that vacancy ratios in various office spaces respond differently to uncertainty shocks. The office vacancy ratio in premium-grade office responds to both shocks after one year with its responses fading out in year three. B-grade and C-grade vacancy ratios respond to both shocks within the first year and responses last for about 4 years. Additionally, sub-lease vacancy ratios in the aggregate office space show quick responses to uncertainty shocks (dying out in 2 years), while direct vacancy ratios respond after about 1 year (but fading out in 3 years).
Journal: Applied Economics
Pages: 5393-5411
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2044998
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2044998
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# input file: RAEC_A_2047596_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Author-Name: A. Doruk Gunaydin
Author-X-Name-First: A. Doruk
Author-X-Name-Last: Gunaydin
Author-Name: Mustafa Oztekin
Author-X-Name-First: Mustafa
Author-X-Name-Last: Oztekin
Title: Price discovery in emerging market ETFs
Abstract:
This study investigates the price discovery role of exchange-traded funds (ETFs) by examining the predictive relation between the returns of emerging market ETFs traded in the US and the returns to the aggregate equity indices that they track. In a sample that covers 18 countries, we find that ETF returns can predict one-day-ahead returns of their underlying indices. This relation is robust after controlling for the non-synchronicity between markets, serial correlation in index returns, and various determinants of aggregate returns. Moreover, the predictive relation is more pronounced during periods of higher volatility and evidence for bidirectional spillover effects is weak. We also find that an out-of-sample rolling window strategy outperforms investing in the market index several-fold in the majority of the markets, especially in the high-volatility subsample.
Journal: Applied Economics
Pages: 5476-5496
Issue: 47
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047596
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047596
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# input file: RAEC_A_2047599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Bartholomew Bilijo Bachori
Author-X-Name-First: Bartholomew Bilijo
Author-X-Name-Last: Bachori
Author-Name: Emmanuel Buabeng
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Buabeng
Author-Name: Daniel Sakyi
Author-X-Name-First: Daniel
Author-X-Name-Last: Sakyi
Title: Currency hedging behavior for stock returns uncertainty in Ghana
Abstract:
This article investigates the dynamic interaction between stock market returns and exchange rate movement and their implication for portfolio risk management in Ghana. To do so, and considering the Covid-19 crisis, the Dynamic Conditional Correlation Multivariate GARCH estimation technique was employed on daily data for Ghana Stock Exchange (GSE) Composite Index and the Ghana Cedi to USD, Euro, and GBP exchange rates from 3 January 2012 to 26 November 2021. The results revealed that: (i) the GSE market has no significant exposure to the USD, Euro, and GBP exchange rates in the full sample and periods before the crisis but was significantly exposed to the Euro rates during the crisis, (ii) the returns on holding foreign currencies were relatively higher but riskier compared to returns on stocks for the full sample and periods before the crisis, and (iii) while the Euro rates act as the most efficient hedge currency for stock returns uncertainty the correlations between stock returns and exchange rate movement were generally low and therefore, forming a portfolio of stocks and currency pairs improved an investor’s daily returns and risk. Based on the findings, relevant policy suggestions are offered to guide investors and policymakers.
Journal: Applied Economics
Pages: 5532-5548
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047599
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047599
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# input file: RAEC_A_2047598_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Amat Adarov
Author-X-Name-First: Amat
Author-X-Name-Last: Adarov
Author-Name: David Klenert
Author-X-Name-First: David
Author-X-Name-Last: Klenert
Author-Name: Robert Marschinski
Author-X-Name-First: Robert
Author-X-Name-Last: Marschinski
Author-Name: Robert Stehrer
Author-X-Name-First: Robert
Author-X-Name-Last: Stehrer
Title: Productivity drivers: empirical evidence on the role of digital and intangible capital, FDI and integration
Abstract:
We examine the drivers of labor productivity at aggregate and sectoral levels focusing on tangible and intangible ICT capital, FDI and global value chain participation. The analysis, based on a panel dataset of 18 EU countries, the US and Japan over the period 2000–2017, reveals an important role of ICT capital, especially intangible ICT capital embodied in software and databases, in driving labor productivity growth. Furthermore, backward global value chain participation is also positively associated with productivity. Contrary to expectations, we do not find evidence of a productivity-enhancing effect of foreign direct investment when controlling for phantom FDI related to special purpose entities.
Journal: Applied Economics
Pages: 5515-5531
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047598
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047598
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# input file: RAEC_A_2047604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Stephen Matteo Miller
Author-X-Name-First: Stephen Matteo
Author-X-Name-Last: Miller
Author-Name: Thandinkosi Ndhlela
Author-X-Name-First: Thandinkosi
Author-X-Name-Last: Ndhlela
Title: “Burning money” and institutional decline during Zimbabwe’s hyperinflation
Abstract:
During Zimbabwe’s hyperinflation that ended in 2009, people turned to an illegal round-tripping transaction called ‘burning money’ to preserve purchasing power. The transaction involved illegally acquiring foreign currency at the official rate before converting back to domestic currency in the black market. After computing the widely used ‘Old Mutual’ parallel market rate from the ratio of prices of Old Mutual shares, which traded in London and Harare, we use the daily parallel market and official exchange rate data from 1999 to 2008 to estimate the monthly value of ‘burning money’. While arguably vital, as the transactions were optional, we value them using a single-factor call exchange option formula, which accounts for the volatility of official and parallel market exchange rates and systematic parallel market risk and compare it to changes in the parallel market premium, often used to measure non-unified exchange rates. The ‘burning money’ option values exceed changes in the parallel market premium and respond more to institutional decline, measured using the cash component of M2 equal to one minus the non-cash component of M2 known as Contract Intensive Money, and especially political risk.
Journal: Applied Economics
Pages: 5605-5621
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047604
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047604
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# input file: RAEC_A_2047600_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Eli Agba
Author-X-Name-First: Eli
Author-X-Name-Last: Agba
Author-Name: Hamza Bennani
Author-X-Name-First: Hamza
Author-X-Name-Last: Bennani
Author-Name: Jean-Yves Gnabo
Author-X-Name-First: Jean-Yves
Author-X-Name-Last: Gnabo
Title: Assessing the sources of heterogeneity in eurozone response to unconventional monetary policy
Abstract:
In this paper, we aim at explaining a specific type of heterogeneity in the euro area pertaining to the diverging responses of countries and sectors to the European Central Bank’s Unconventional Monetary Policy. Equipped with stock markets indices of 17 sectors for each euro area country, we first preform an event-study analysis to assess the reaction of the markets. Next, we regress the responses on a set of country-specific drivers. Our main findings show that variables related to the nature of banking industry (e.g. cost-to-income, return on assets), macroeconomic environment (e.g. gross debt) and macroprudential policy all contribute to observe diverging responses to ECB’s monetary policies. While some sectors and countries responded more negatively than positively to the policies, the Unconventional Monetary Policy impacts the markets positively on average. A policy implication is that the heterogeneous response calls for domestic structural reforms that should target the discrepancies in the banking and the macroeconomic environments across euro area countries.
Journal: Applied Economics
Pages: 5549-5574
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047600
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047600
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# input file: RAEC_A_2047601_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Jennifer T Lai
Author-X-Name-First: Jennifer T
Author-X-Name-Last: Lai
Author-Name: Jing Xie
Author-X-Name-First: Jing
Author-X-Name-Last: Xie
Author-Name: Shiyun Cao
Author-X-Name-First: Shiyun
Author-X-Name-Last: Cao
Author-Name: Hao Zhang
Author-X-Name-First: Hao
Author-X-Name-Last: Zhang
Title: Digital financial inclusion and illegal fundraising in China
Abstract:
This paper investigates the impact of digital financial inclusion on illegal fundraising activities in China. From the China Judgments Online website, we extract data of criminal court cases of illegal fundraising from 2013 to 2019, during which both the illegal fundraising court cases and the development of digital finance displayed a rising trend. We then evaluate if digital financial inclusion may have worsened illegal fundraising activities. We find that digital financial inclusion has a positive effect on illegal fundraising activities. This effect remains robust under alternative measures of the intensity of illegal fundraising activities and when instrumental variable estimations are used to tackle potential endogeneity problems. Furthermore, convenient banking services are an important channel through which digital financial inclusion exerts its positive impact on illegal fundraising. Therefore, while active promotions of digital finance could benefit economic development, it is also necessary to timely improve the supervision of emerging finance to guard against financial risks.
Journal: Applied Economics
Pages: 5575-5590
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047601
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047601
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# input file: RAEC_A_2047605_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: John Nkwoma Inekwe
Author-X-Name-First: John Nkwoma
Author-X-Name-Last: Inekwe
Author-Name: Kuntal Kumar Das
Author-X-Name-First: Kuntal Kumar
Author-X-Name-Last: Das
Author-Name: Umakant Dash
Author-X-Name-First: Umakant
Author-X-Name-Last: Dash
Author-Name: Augustine C. Arize
Author-X-Name-First: Augustine C.
Author-X-Name-Last: Arize
Title: Does the pattern of age dependency matter in the promotion of financial development in an emerging economy?
Abstract:
In this study, we examine the financial development effect of population aging pattern in India. We examine the period 1960 to 2017 and analyse the various types of age dependency, which includes both old and young measures. By using structural VAR and ARDL techniques, we find that changes in young age dependency have a significant impact on changes in financial development in India while dependency by the old generation does not affect it. This study suggests that government and policymakers should protect the health, longevity and working conditions of young age people for the promotion of better financial development in India.
Journal: Applied Economics
Pages: 5622-5637
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047605
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047605
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# input file: RAEC_A_2047603_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Jung Hwa Suh
Author-X-Name-First: Jung Hwa
Author-X-Name-Last: Suh
Author-Name: Si-Hun Park
Author-X-Name-First: Si-Hun
Author-X-Name-Last: Park
Title: Effects of business strategies on the selection of trusted taxpayers: case of South Korea
Abstract:
This study examines the effects of corporate business strategies on the selection of companies as trusted taxpayers in South Korea. The financial policies of companies with a prospector-type business strategy reflect inherent business uncertainties and risks, resulting in overvalued assets and profits and undervalued liabilities and expenses. By contrast, companies adopting a defender-type business strategy tend to accomplish economies of scale through various products and services, resulting in undervalued assets and profits and overvalued liabilities and expenses. Consequently, companies with a prospector-type business strategy are expected to be more likely to be selected as trusted taxpayers than companies using a defender-type business strategy. Our empirical analysis confirms that the probability of selection as a trusted taxpayer increases significantly when the company is a prospector and decreases significantly when the company is a defender. That is, prospector companies have a higher probability of selection as trusted taxpayers due to their aggressive accounting measures, whereas defender companies have a lower probability of selection as trusted taxpayers due to their conservative accounting measures. These findings have implications for tax authorities and executives by illustrating the characteristics required for companies to be selected as trusted taxpayers
Journal: Applied Economics
Pages: 5591-5604
Issue: 48
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047603
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047603
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# input file: RAEC_A_2048787_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Qifan Huang
Author-X-Name-First: Qifan
Author-X-Name-Last: Huang
Author-Name: Saizi Xiao
Author-X-Name-First: Saizi
Author-X-Name-Last: Xiao
Author-Name: Castiel Chen Zhuang
Author-X-Name-First: Castiel Chen
Author-X-Name-Last: Zhuang
Title: The heterogeneous impact of COVID-19 in a two-sided market: evidence from a live-streaming platform
Abstract:
Two-sided digital platforms play an increasingly important role in our economy. During the COVID-19 pandemic, our involvement with these platforms increases drastically, but little is known about how the behavior of consumers and the labor market performance of workers in a two-sided market are affected by an economy-wide shock. This article uses a unique real-time dataset from a live-streaming platform to investigate how virtual gifting of fans and live e-commerce decisions and sales of anchors are influenced by COVID-19. Our general quantile regression approach suggests that the pandemic severity on the fans side instead of the anchors side increases virtual gifting to low-paying anchors, consistent with our theoretical prediction. In addition to the prices adjusted by the platform, we also find user participation and gender potential mechanisms through which COVID-19 affects virtual gifting. Due to increased popularity caused by the pandemic, low-paying anchors conduct more live e-commerce and achieve higher sales. Our results document the de-polarization of a novel and emerging labor market with flexible workforce on a digital platform and emphasize the need to take market structures into account when studying the impact of demand shocks.
Journal: Applied Economics
Pages: 5670-5689
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2048787
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2048787
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# input file: RAEC_A_2048788_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Liurui Deng
Author-X-Name-First: Liurui
Author-X-Name-Last: Deng
Author-Name: Zilan Liu
Author-X-Name-First: Zilan
Author-X-Name-Last: Liu
Author-Name: Jie Tan
Author-X-Name-First: Jie
Author-X-Name-Last: Tan
Title: Optimal portfolio and consumption choices of retirees with uncertain lifetimes under cumulative prospect theory
Abstract:
In this paper, based on Cumulative Prospect Theory (CPT), we focus on the optimal portfolio and consumption under uncertain lifetime. Previous work considers similar problems under Expected Utility Theory but not CPT. Our main contribution is to use CPT to more accurately model the characteristics of the retirees’ psychology and investment behavior after retirement. Moreover, we study the effect of the changes in psychology related to investment on consumption over an uncertain lifetime. We obtain explicit solutions for the optimal portfolio and consumption decisions. Furthermore, through numerical analysis, we compare our optimal consumption with that obtained by Alexander Kremer et al. In empirical analysis, we obtain the result that there is a significant inverted U-shaped relationship between the retirement age and the consumption rate. The result is consistent with one of theoretical and numerical analysis. Endogenous test and robustness test also support this result. Furthermore, we achieve the key conclusion that the effect of retirement age on consumption rate is heterogeneous. Specially, the impact of retirement age on consumption is different for different medical costs, geographic areas, gender and levels of education. But, the inverted U-shaped relationship between the retirement age and the consumption rate still exists.
Journal: Applied Economics
Pages: 5690-5716
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2048788
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2048788
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# input file: RAEC_A_2047606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Rodolfo G. Campos
Author-X-Name-First: Rodolfo G.
Author-X-Name-Last: Campos
Author-Name: Jacopo Timini
Author-X-Name-First: Jacopo
Author-X-Name-Last: Timini
Title: Unequal trade, unequal gains: the heterogeneous impact of MERCOSUR
Abstract:
We estimate the impact of MERCOSUR on trade flows and on gains from trade for its member countries using a standard modern general equilibrium quantitative structural gravity model. We find a highly heterogeneous impact on bilateral trade flows and gains from trade. We estimate that gains from trade attributable to MERCOSUR are equivalent to a 4.0% increase in per-capita consumption for Argentina. For the other countries, gains from trade are smaller: 0.8% for Uruguay, 0.5% for Paraguay, and 0.3% for Brazil. We study whether Brazil would benefit from withdrawing from MERCOSUR and signing a trade agreement with a different trade bloc but conclude that net gains from such a switch would be small, if any.
Journal: Applied Economics
Pages: 5655-5669
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2047606
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2047606
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# input file: RAEC_A_2042466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Yunrong Li
Author-X-Name-First: Yunrong
Author-X-Name-Last: Li
Author-Name: Ricardo Mora
Author-X-Name-First: Ricardo
Author-X-Name-Last: Mora
Title: On the use of social networking services and the ability to socialize: evidence from Chinese children aged 10 to 15
Abstract:
We use longitudinal individual data from a nationally representative sample of Chinese children aged 10 to 15 to investigate whether restrictions on internet use for social interactions affect social skills among adolescents. First, we find that (i) for most children offline and online relations are complements so that online restrictions reduce their offline social relations; (ii) these negative effects are mostly invariant to the size of the online network; and (iii) for older children they are large and statistically significant even in the absence of network effects. Second, we find that offline social relations directly affect social skills while online social relations do not. These results are consistent with the view that the majority of adolescents use online technologies to intensify their offline social relations, which has a positive effect on their ability to socialize with others.
Journal: Applied Economics
Pages: 5639-5654
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2042466
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2042466
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# input file: RAEC_A_2052009_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Qinyi Liu
Author-X-Name-First: Qinyi
Author-X-Name-Last: Liu
Author-Name: Belton M. Fleisher
Author-X-Name-First: Belton M.
Author-X-Name-Last: Fleisher
Title: Job tasks and cognitive skill accumulation
Abstract:
Individuals’ cognitive skills can be improved through learning by doing various tasks at work. We report the results of studying rich information on job tasks performed at the individual level based on three measures of job task complexity: (i) overall job complexity, (ii) analytical task intensity, and (iii) interactive task intensity. Controlling for task selection, we show that both overall job task complexity and analytical tasks can contribute to the development of a worker’s cognitive skills, while interactive tasks play a less significant role. Furthermore, we find that complex job tasks can offset the effect of aging on cognitive functioning. We show the implications of our research results for work design, cognitive interventions, and retirement policies.
Journal: Applied Economics
Pages: 5734-5753
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2052009
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2052009
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# input file: RAEC_A_1843332_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: The Editors
Title: Correction
Journal: Applied Economics
Pages: 5754-5754
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2020.1843332
File-URL: http://hdl.handle.net/10.1080/00036846.2020.1843332
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# input file: RAEC_A_2049674_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Michael A. Roach
Author-X-Name-First: Michael A.
Author-X-Name-Last: Roach
Title: Surprise information in Major League Baseball: how teams and betting markets respond
Abstract:
Studies of financial markets have shown markets inefficiently underreacting to surprise information, discounting it too heavily in the short term. This paper explores this phenomenon in a new but analogous setting: Major League Baseball. I analyze how surprise information – the deviation between a team’s realized win total and the preseason expectations of betting markets – is incorporated into the teams’ personnel investments and into betting markets. Using fixed effect panel regressions, I find that higher win totals are associated with increased investment in the following season (as measured by team payroll and investment in free agents) and that, conditional on win totals, underperforming (overperforming) expectations in the prior season is associated with more (less) investment. This is consistent with teams discounting some of the surprise information. The effect is more pronounced for teams near the threshold of a playoff appearance. I find that some discounting is rational since roughly 27% of the gap between realized performance and expected performance does not persist into the following season. I find no evidence that betting markets are inefficient in their incorporation of surprise information. However, estimates suggest that teams significantly underreact to surprise information, an inefficiency analogous to those observed in financial markets.
Journal: Applied Economics
Pages: 5717-5733
Issue: 49
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2049674
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2049674
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# input file: RAEC_A_2053653_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Mengxi He
Author-X-Name-First: Mengxi
Author-X-Name-Last: He
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Author-Name: Danyan Wen
Author-X-Name-First: Danyan
Author-X-Name-Last: Wen
Author-Name: Yudong Wang
Author-X-Name-First: Yudong
Author-X-Name-Last: Wang
Title: Forecasting the Chinese stock market volatility: A regression approach with a t-distributed error
Abstract:
In this paper, we improve the ordinary least squares (OLS) estimation approach by replacing a normally distributed error with a t-distributed error. Empirically, we investigate the predictability of the Chinese stock market volatility based on this modified approach. Results show that the modified OLS method with a t-distributed error has a significantly stronger forecasting power than its counterpart with a normally distributed error. From an asset allocation perspective, the modified OLS approach can help a mean-variance investor obtain sizeable utility gains. We also conduct two extended empirical analyses and further verify the superiority of the regression approach with a t-distributed error. Our results are robust to a series of settings. Finally, we find that the regression approach with a t-distributed error shows greater tolerance for outliers by assigning smaller weights to them, thereby highlighting its superior performance.
Journal: Applied Economics
Pages: 5811-5826
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053653
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053653
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# input file: RAEC_A_2053054_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Yi Fan
Author-X-Name-First: Yi
Author-X-Name-Last: Fan
Author-Name: Diana M. Weinhold
Author-X-Name-First: Diana M.
Author-X-Name-Last: Weinhold
Title: Urban noise, sleep disruption and health
Abstract:
Numerous studies have linked sleep disruption to a variety of poor health outcomes, but social scientists still have a very limited understanding of the overall importance of sleep for health in the general population. Limitations on both the scope and duration of laboratory studies make it difficult to establish longer-term causal links, and potential reverse causality may significantly weaken causal inference with observational data. As a result, there is little empirical evidence on the potential causal impact of commonly encountered urban noise-induced sleep disruption on health in otherwise healthy adults. Using a survey of Dutch adults, we contribute to the effort to investigate the causal relationship between self-reported sleep disruption and health by using individual-specific exposure to neighbour noise as an instrument for sleep disruption. We argue that neighbour noise is a relatively ex-ante unobservable exogenous shock, and we provide quantitative evidence that it fulfills the relevance, exogeneity, and exclusion restrictions for validity as an instrument. Consistent with theory, we find statistically and economically significant causal effects of sleep disruption on cardiovascular problems, auto-immune diseases such as arthritis and lung disease, and headache. The results survive a battery of robustness checks and highlight the importance of noise-related public policies.
Journal: Applied Economics
Pages: 5782-5799
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053054
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053054
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# input file: RAEC_A_2053053_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Donseung Choi
Author-X-Name-First: Donseung
Author-X-Name-Last: Choi
Author-Name: Kevin L. James
Author-X-Name-First: Kevin L.
Author-X-Name-Last: James
Author-Name: Collins Emeka Okafor
Author-X-Name-First: Collins Emeka
Author-X-Name-Last: Okafor
Author-Name: Eunho Cho
Author-X-Name-First: Eunho
Author-X-Name-Last: Cho
Author-Name: Md Nazmul Hasan Bhuyan
Author-X-Name-First: Md Nazmul Hasan
Author-X-Name-Last: Bhuyan
Title: The effect of executives' education and compensation on firm value: evidence from China
Abstract:
In this study, we empirically investigate the relation between firm executives’ education and compensation levels and firm value in non-state-owned Chinese listed firms. We closely examine whether executive compensation moderates the relationship between executives’ education and firm value. Using a sample of 6,674 firm-year observations from 2005–2016, we find that firms with more educated executives have better values. Furthermore, our results show that the executive’s compensation level enhances this positive association. Our findings lend credence to similar studies that suggest that education and compensation levels can enhance firm value.
Journal: Applied Economics
Pages: 5763-5781
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053053
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053053
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# input file: RAEC_A_2053655_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Zhiqi Zhao
Author-X-Name-First: Zhiqi
Author-X-Name-Last: Zhao
Author-Name: David Meenagh
Author-X-Name-First: David
Author-X-Name-Last: Meenagh
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Title: Should Hong Kong switch to Taylor rule?—Evidence from DSGE model
Abstract:
This paper studies the economy of Hong Kong through the lens of a small open economy DSGE model with a currency board exchange rate commitment. It assumes flexible prices and a banking system that provides credit to entrepreneurial household firms; the money supply is fully backed by reserves under the currency board. We estimate and evaluate the model by Indirect Inference over the sample period of 1994Q1-2018Q3; we find that it matches the data behaviour as represented by a VAR. We examined the economy’s volatility using bootstrapping of the model innovations, under both the estimated currency board model and a standard alternative regime with floating exchange rate and a Taylor rule; we found that Hong Kong welfare is higher in the currency board, which substantially reduces output volatility.
Journal: Applied Economics
Pages: 5851-5872
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053655
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053655
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# input file: RAEC_A_2053654_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Jiali Fang
Author-X-Name-First: Jiali
Author-X-Name-Last: Fang
Author-Name: Wei Hao
Author-X-Name-First: Wei
Author-X-Name-Last: Hao
Author-Name: Michelle Reyers
Author-X-Name-First: Michelle
Author-X-Name-Last: Reyers
Title: Financial advice, financial literacy and social interaction: what matters to retirement saving decisions?
Abstract:
We analyze the effect of financial advice, financial literacy and social interaction on households’ retirement saving decisions. Financial advice is the only factor that positively influences individuals’ decisions to participate in a retirement plan, while only financial literacy increases risky asset allocation. These two important factors both influence the ultimate retirement account balance. Viewed collectively, we propose that financial advice and financial literacy benefit retirement saving decisions through different channels, they complement each other and they jointly lead to a better ultimate outcome. The evidence is consistent when we further consider quality of advice and self-rated financial literacy. However, social interaction is of little help in facilitating better retirement saving decisions.
Journal: Applied Economics
Pages: 5827-5850
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053654
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053654
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# input file: RAEC_A_2053052_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: S. N. Spilioti
Author-X-Name-First: S. N.
Author-X-Name-Last: Spilioti
Title: Market share-prices versus their fundamental values: the case of the New York stock exchange
Abstract:
The accounting valuation model suggests that the differences between predicted, and market shares-prices are considered as valuation errors while the finance valuation approach proposes that these differences are due to the sentiment of investors. In this paper, we use a new version of the residual income valuation model using American data to calculate the fundamental value of a stock and then examine whether price deviations from their fundamental values are due to macroeconomic or psychological factors. The results show that these differences are explained by important macroeconomic and psychological variables.
Journal: Applied Economics
Pages: 5755-5762
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053052
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053052
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# input file: RAEC_A_2053055_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f
Author-Name: Yiming He
Author-X-Name-First: Yiming
Author-X-Name-Last: He
Author-Name: Shaohui Gao
Author-X-Name-First: Shaohui
Author-X-Name-Last: Gao
Title: Energy-Water Consumption and Food Yield: An Empirical Dual Sectors Dynamic Equilibrium Model
Abstract:
This paper develops a dual sectors dynamic equilibrium model and introduces agricultural energy consumption and agricultural water consumption in a growth model that tested by using a panel data set from 2004 to 2016 in China. It presents a theoretical prediction on the interactions between agricultural energy consumption, agricultural water consumption, and food yield. Consistent with this prediction, agricultural electricity consumption and agricultural water consumption by themselves appear to have significant effects on food yield. The fixed-effects models verify that agricultural electricity consumption, agricultural water consumption, and food yield have long-run equilibrium relationships. The results of weather-based robustness checks reveal that food yield is positively correlated with agricultural electricity consumption. Also consistent with theory, agricultural water consumption is positively associated with food yield. These results are generally stable and hold with tests of panel data unit roots, with alternative estimation strategies, and with or without controlling for covariates.
Journal: Applied Economics
Pages: 5800-5810
Issue: 50
Volume: 54
Year: 2022
Month: 10
X-DOI: 10.1080/00036846.2022.2053055
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2053055
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# input file: RAEC_A_2056126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Christophe Blot
Author-X-Name-First: Christophe
Author-X-Name-Last: Blot
Author-Name: Fabien Labondance
Author-X-Name-First: Fabien
Author-X-Name-Last: Labondance
Title: Beyond the interest rate pass-through: monetary policy and banks interest rates since the effective lower bound
Abstract:
We investigate whether ECB monetary policy influences the retail interest rates in the Euro Area when the policy rate reaches the effective lower bound. We estimate a panel Error Correction Model that accounts for potential heterogeneities in the transmission of monetary policy. The analysis disentangles alternative balance-sheet policies implemented by the ECB. We find that unconventional measures have influenced banking interest rates beyond the pass-through of the current and expected policy rate. These effects are driven by liquidity provisions and by the covered bond purchase programmes. Those policies have been effective in the core and in the peripheral countries; however, the effect of purchases of covered-bond has been stronger in the periphery.
Journal: Applied Economics
Pages: 5976-5990
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056126
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056126
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# input file: RAEC_A_2055742_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Austin F. Eggers
Author-X-Name-First: Austin F.
Author-X-Name-Last: Eggers
Author-Name: Peter A. Groothuis
Author-X-Name-First: Peter A.
Author-X-Name-Last: Groothuis
Title: Party on dude, but not if you’re a top academic achieving student: how being named a top party school changes the academic profile of a university
Abstract:
This study examines how being named the top party school in the nation by the Princeton Review effects the quality of students at a university. The results indicate that being named the top party school lowers the number of top-tier students who choose to attend the university as measured by academic test scores. The study further finds that being named a top party school has no effect on student applications; however, this designation does lower the number of students who are admitted and who chose to enroll after the institution is named the top party school. These findings suggest that the publicity of being named the top party school enhances a school’s undesired reputation, thereby influencing student enrollment decisions, particularly among top-tier students.
Journal: Applied Economics
Pages: 5932-5942
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2055742
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055742
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# input file: RAEC_A_2054927_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Daniel Lederman
Author-X-Name-First: Daniel
Author-X-Name-Last: Lederman
Author-Name: Marwane Zouaidi
Author-X-Name-First: Marwane
Author-X-Name-Last: Zouaidi
Title: Incidence of the Digital Economy and Frictional Unemployment: International Evidence
Abstract:
This paper is the first to quantify the relationship between the incidence of the digital economy and long-term frictional unemployment across countries. This paper contributes a novel approach to the literature that had been missing by focusing on the impact of the digital economy on unemployment across a global sample of countries . The resulting evidence indicates that there is a robust, negative partial correlation between national unemployment rates and the incidence of the digital economy, proxied by the share of the adult population that reports using the internet to pay bills. Further, the absolute values of OLS estimates of the partial correlation suggest that it might be higher for developing than high-income economies. Controlling for informal employment appears to be key for removing a positive omitted-variable bias in the estimate of the partial correlation between unemployment and the digital economy, which is due to a negative bivariate correlation between unemployment and informality, and a negative bivariate correlation between informality and the incidence of digital payment. The results from IV estimations suggest that the partial correlation between unemployment and digital payments is negative, with the absolute value of the estimates being larger than the absolute value of the OLS estimates.
Journal: Applied Economics
Pages: 5873-5888
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2054927
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2054927
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# input file: RAEC_A_2055740_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Petra Maresova
Author-X-Name-First: Petra
Author-X-Name-Last: Maresova
Author-Name: Ehsan Javanmardi
Author-X-Name-First: Ehsan
Author-X-Name-Last: Javanmardi
Author-Name: Raihan Maskuriy
Author-X-Name-First: Raihan
Author-X-Name-Last: Maskuriy
Author-Name: Ali Selamat
Author-X-Name-First: Ali
Author-X-Name-Last: Selamat
Author-Name: Kamil Kuca
Author-X-Name-First: Kamil
Author-X-Name-Last: Kuca
Title: Dynamic sustainable business modelling: exploring the dynamics of business model components considering the product development framework
Abstract:
Business systems are a subclass of dynamic, complex systems; the plurality of multifarious and interwoven factors affecting a business system makes prediction, modeling, and decision-making challenging for the players in such systems. This study conceptualises dynamic business modeling from a sustainability viewpoint by investigating the basic principles, requirements, and methodological limitations, as well as gaps in the business model design literature. This conceptual model combines an adapted business model canvas and system dynamics modeling using an up-to-date review. The studies used in this systematic review were retrieved from the Scopus and Web of Science databases between 2010 and 2021. The total number of publications in all databases was 422. However, following an in-depth investigation of these publications, 164 papers were selected for further review. Based on the business model canvas, the interactions between different business dimensions and the impact on environmental stakeholders were examined. Finally, a dynamic, sustainable business model canvas is conceptualised and developed. The findings suggest that the proposed system dynamics business modeling approach can frame the environmental, social, and economic drivers of value creation in a causal feedback structure and overcome the gaps and criticisms of existing business model design tools.
Journal: Applied Economics
Pages: 5904-5931
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2055740
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# input file: RAEC_A_2055743_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Author-Name: Sergei Gurov
Author-X-Name-First: Sergei
Author-X-Name-Last: Gurov
Title: New evidence on the impact of implicit trading costs on asset prices in the Russian stock market
Abstract:
We perform a comprehensive study of different illiquidity effects in the relatively illiquid Russian stock market. Over the period 2010–2020, we apply cross-sectional and time-series regressions using two low-frequency illiquidity proxies: the Amihud ratio and the invariance-implied ratio. The evidence suggests that implicit trading costs influence only the returns of small-capitalization stocks or low size double-sorted portfolios. The Amihud ratio overestimates the illiquidity premium for small-cap stocks as predicted by the invariance theory. However, we find that the effect is economically and statistically significant only in the time-series.
Journal: Applied Economics
Pages: 5943-5955
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2055743
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055743
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# input file: RAEC_A_2056125_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Claudiu Tiberiu Albulescu
Author-X-Name-First: Claudiu Tiberiu
Author-X-Name-Last: Albulescu
Author-Name: Camélia Turcu
Author-X-Name-First: Camélia
Author-X-Name-Last: Turcu
Title: Productivity, financial performance, and corporate governance: evidence from Romanian R&D firms
Abstract:
We study the impact of financial performance and corporate governance on the productivity of the Romanian Research and Development (R&D) sector. We draw on a dataset consisting of 116 Romanian R&D companies covering the time span from 2007 to 2016. Firm productivity is computed using several metrics of TFP (total factor productivity). We show, based on bootstrap panel quantile regressions, that size, financial profitability, and foreign ownership are key drivers of R&D companies’ productivity. Intangible assets and taxation have no significant effect on R&D firms’ productivity, while the degree of independence in decision-making and owners’ presence in firms’ management negatively impact TFP. With women on the board, state-owned applied research institutes benefit from higher productivity compared with R&D private firms, if they are in lower quantiles.
Journal: Applied Economics
Pages: 5956-5975
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056125
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# input file: RAEC_A_2055268_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yao Yao
Author-X-Name-First: Yao
Author-X-Name-Last: Yao
Author-Name: George S. Chen
Author-X-Name-First: George S.
Author-X-Name-Last: Chen
Author-Name: Lin Zhang
Author-X-Name-First: Lin
Author-X-Name-Last: Zhang
Title: Gender segregation in the causal effect of foreign direct investment on educational attainment: the Chinese experience
Abstract:
We examine the causal effect of foreign direct investment (FDI) on educational attainment through the lens of gender segregation in China. Using a comprehensive dataset for the 1985–2014 period and controlling for endogeneity, we find that a more prominent FDI presence causes higher educational attainment, particularly for women. Moreover, we show that this gender-segregated causal effect remains robust to different estimators, measurements and specifications. Overall, we uncover an important social externality of FDI that has never been explored systematically in the literature; namely, FDI generates positive spillovers on female educational attainment in its host country.
Journal: Applied Economics
Pages: 5889-5903
Issue: 51
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2055268
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055268
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# input file: RAEC_A_2056128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammed Benlemlih
Author-X-Name-First: Mohammed
Author-X-Name-Last: Benlemlih
Author-Name: Cynthia Assaf
Author-X-Name-First: Cynthia
Author-X-Name-Last: Assaf
Author-Name: Imane El Ouadghiri
Author-X-Name-First: Imane
Author-X-Name-Last: El Ouadghiri
Title: Do political and social factors affect carbon emissions? Evidence from international data
Abstract:
This study extends the literature on the determinants of carbon emissions by exploring the effects of political and social factors on pollutant emissions. We claim that political stability, corruption, and women in politics significantly influence CO2 emissions. Using the autoregressive distributed lag approach and an extensive dataset that represents more than 145 countries worldwide, we provide strong and robust evidence that low corruption practices and women’s representation in politics statistically and economically reduce carbon emissions. We also show that high political stability significantly reduces CO2 emissions in the short run, but not in the long run. Our findings highlight the importance of these factors in reducing pollution worldwide and provide incentives for international regulators and policymakers toward stronger and mandatory decisions that positively evolve less politically stable and corrupt countries.
Journal: Applied Economics
Pages: 6022-6035
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056128
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056128
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# input file: RAEC_A_2056130_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Massimiliano Caporin
Author-X-Name-First: Massimiliano
Author-X-Name-Last: Caporin
Author-Name: Mikhail Stolbov
Author-X-Name-First: Mikhail
Author-X-Name-Last: Stolbov
Author-Name: Maria Shchepeleva
Author-X-Name-First: Maria
Author-X-Name-Last: Shchepeleva
Title: What drives the expansion of research on banking crises? Cross-country evidence
Abstract:
This article aims to identify the factors which promote research activity on banking crises in the cross-country framework during the period 2014–2020. Building on the population-adjusted country-level publication data from the Scopus and Web of Science databases and applying Bayesian model averaging (BMA) and least absolute shrinkage and selection operator (LASSO), we conduct an open search for such factors out of 23 candidate predictors. A higher level of bank concentration appears to be the most significant factor motivating research on banking crises. It is robust with respect to both bibliographic databases and variable selection methods used. Based only on the Scopus data, GDP per capita and the peak ratio of non-performing loans to total loans during the latest banking crisis experienced by a country also increase the number of published studies on banking crises.
Journal: Applied Economics
Pages: 6054-6064
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056130
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# input file: RAEC_A_2056570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bin Liu
Author-X-Name-First: Bin
Author-X-Name-Last: Liu
Author-Name: Qun Gao
Author-X-Name-First: Qun
Author-X-Name-Last: Gao
Author-Name: Ruixue Zhu
Author-X-Name-First: Ruixue
Author-X-Name-Last: Zhu
Author-Name: Jide Sun
Author-X-Name-First: Jide
Author-X-Name-Last: Sun
Author-Name: Chunlu Liu
Author-X-Name-First: Chunlu
Author-X-Name-Last: Liu
Title: Measuring the developing trends of international construction industries in global value chains based on value added
Abstract:
The construction sector is an indispensable element of social economies. The international trade activities for the local construction sectors have been stimulated by the demands of globalization, which accelerates the transfer of value added in the global value chains. This study constructs a measurement framework for the developing trends in the global value chains based on value added and picks up the international construction industries at the sectoral level. Based on the participation index, the position index, and the connection index, the developing trend is measured in order to comprehensively identify the ability of the national construction sectors due to value added in the global value chain. The study results show that the influence on the global value chain derived from technical advantage decreased with the improvement of the construction sectors in emerging economies. The international construction sectors were reallocated based on geographical distribution and competitive advantage after 2008. This paper will prove useful for policymakers by providing a clear method for identifying the precise location in the global value chain of a specific country. Governments can consider sectoral planning at regional and global levels based on a map of advantages and disadvantages.
Journal: Applied Economics
Pages: 6065-6081
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056570
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# input file: RAEC_A_2056127_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mihoko Wakamatsu
Author-X-Name-First: Mihoko
Author-X-Name-Last: Wakamatsu
Author-Name: Shunsuke Managi
Author-X-Name-First: Shunsuke
Author-X-Name-Last: Managi
Title: Does spatially targeted information boost the value of ecolabeling seafood? A choice experiment in Japan
Abstract:
The success of ecolabelling to promote sustainable fisheries hinges on information. We explore the effects of spatially targeted knowledge on willingness to pay for ecolabels using treatments that provide consumers with knowledge about the health of worldwide, domestic, and foreign fisheries, which can have differential effects for domestic and imported seafood. Analysis of data collected using a choice experiment indicates that spatial differences in knowledge do not necessarily influence the value of ecolabels. Knowledge of the state of domestic fisheries has no greater effect on the value consumers assign to sustainable domestic products than knowledge of world fisheries. We also find that the ecolabels generate premiums and that importing discounted the value regardless of whether additional information on fisheries was provided and of the type of spatial knowledge provided. The greatest premium for ecolabelled domestic products was achieved when the world fishery information was provided, but additional knowledge about the fishery did not affect the value of ecolabelled foreign products. Additionally, consumers who received information on the domestic fishery and viewed it as positive were willing to pay as much for the labelled domestic products as those who received information on world fisheries.
Journal: Applied Economics
Pages: 6008-6021
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056127
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056127
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# input file: RAEC_A_2061902_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Antonio Martuscelli
Author-X-Name-First: Antonio
Author-X-Name-Last: Martuscelli
Title: Globalization and wage inequality: evidence from Italian local labor markets
Abstract:
Concerns about rising inequality and its economic, social and political consequences have been gaining traction in public discourse. However, despite a substantial body of research, the factors behind the rising inequality are still widely debated. This paper analyzes the impact of Chinese import penetration on the wage distribution using Italian administrative data on the universe of private, non-agricultural sector employees between 1991 and 2016. The findings show no support for the hypothesis that increased competition from Chinese imports has contributed to increased wage inequality in Italy. However, import penetration has had a negative effect on wages at different points of the distribution, leaving overall inequality substantially unaffected.
Journal: Applied Economics
Pages: 6082-6097
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061902
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061902
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# input file: RAEC_A_2056129_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaokang Zhao
Author-X-Name-First: Xiaokang
Author-X-Name-Last: Zhao
Author-Name: Guanghe Ran
Author-X-Name-First: Guanghe
Author-X-Name-Last: Ran
Author-Name: Bing Shen
Author-X-Name-First: Bing
Author-X-Name-Last: Shen
Author-Name: Xiaolong Li
Author-X-Name-First: Xiaolong
Author-X-Name-Last: Li
Title: Does ETF activity reduce stock price volatility—Evidence from the A-share market
Abstract:
The scale of global exchange-traded funds (ETFs) has shown an explosive growth trend; however, research on the impact of ETF activity on the stock market is still in its infancy. While ETFs increase the volatility of the U.S. stock market, there is scant literature on the impact of ETF activity on the volatility of the emerging A-share market. Owing to the large differences in the institutional and investor structure of the A-share market, will there be significant differences in the impact of ETFs on the volatility of the A-share market? This study found that ETF activity significantly reduced idiosyncratic volatility but increased systemic volatility. Since the decrease in idiosyncratic volatility was greater than the increase in systemic volatility, the overall volatility showed a downward trend. Further research on the impact mechanism showed that the idiosyncratic volatility of the A-share market was positively correlated with noise information. ETF activity reduced idiosyncratic volatility by reducing the noise information. Systematic volatility was positively correlated with faster information integration speed. ETF activity improved systematic volatility by improving information integration speed. This study elucidated the impact of ETF activity on stock price volatility under different market backgrounds.
Journal: Applied Economics
Pages: 6036-6053
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056129
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056129
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# input file: RAEC_A_2108540_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Deniz Şükrüoğlu
Author-X-Name-First: Deniz
Author-X-Name-Last: Şükrüoğlu
Title: Effects of Covid-19 on the BIST 100 network structure
Abstract:
This article investigates the effects of Covid-19 on the network structure of BIST 100 firms. Analysis are carried out with filtered daily volatilities. Even after filtering out common factors, correlation and autocorrelation heat maps of the filtered volatilities indicate that there are still some patterns. Granger and contemporaneous type volatility networks are estimated and visualized for both the pre-Covid-19 and Covid-19 periods to determine the network structure differences. The article shows that there are centrality-type structures in the Granger network and chain-type linkages in the contemporaneous network for the pre-Covid-19 periods. The degree of interconnectedness is multiplied three times in the Granger network and eight times in the contemporaneous network with Covid-19.
Journal: Applied Economics
Pages: 5991-6007
Issue: 52
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2108540
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108540
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# input file: RAEC_A_2057912_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Hao Wu
Author-X-Name-First: Hao
Author-X-Name-Last: Wu
Author-Name: Yinghua Ren
Author-X-Name-First: Yinghua
Author-X-Name-Last: Ren
Author-Name: Dongwei Yu
Author-X-Name-First: Dongwei
Author-X-Name-Last: Yu
Title: Time-frequency effect of investor sentiment, economic policy uncertainty, and crude oil on international stock markets: evidence from wavelet quantile analysis
Abstract:
This paper employs the wavelet-based quantile method to examine the time and frequency effect of investor sentiment, economic policy uncertainty, and crude oil on emerging and developed stock markets over the monthly sample range from September 2005 to December 2020. We first explore the relationship between various markets, and our empirical results reveal a strong long-term spillover effect of sentiment on returns from developed to emerging markets. Meanwhile, we find the negative influence of EPU gradually strengthens from the short-term towards the long-term. Further, oil shocks to stock returns are highly related to investment horizons and market circumstances. Specifically, the correlation is negative in the medium-term while positive in the short- and long-term, and more evident when stock markets are in a bearish or bullish state. In short, investors should take the structure dependence in terms of time and frequency when participating in financial markets.
Journal: Applied Economics
Pages: 6116-6146
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2057912
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2057912
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# input file: RAEC_A_2057911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Insook Lee
Author-X-Name-First: Insook
Author-X-Name-Last: Lee
Title: Revisiting the Meltzer-Richard hypothesis of pretax income inequality and income tax rate
Abstract:
The Meltzer-Richard hypothesis maintains that higher pretax income inequality entails higher income tax rate chosen by majority-rule voting. However, empirical studies found evidence against the Meltzer-Richard hypothesis. This article reconsiders the Meltzer-Richard hypothesis by dropping their assumption of lump-sum transfers. It finds that the Meltzer-Richard hypothesis is not robust to relaxing the lump-sum transfer assumption. Without lump-sum transfers, the Meltzer-Richard hypothesis no longer holds, as the effect of pretax income inequality on politico-economic equilibrium income tax rate is no longer certainly positive.
Journal: Applied Economics
Pages: 6108-6115
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2057911
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2057911
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# input file: RAEC_A_2056572_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lan Zhang
Author-X-Name-First: Lan
Author-X-Name-Last: Zhang
Author-Name: Jiancheng Wang
Author-X-Name-First: Jiancheng
Author-X-Name-Last: Wang
Author-Name: Yao Xiao
Author-X-Name-First: Yao
Author-X-Name-Last: Xiao
Title: How do entrepreneurs’ characteristics affect R&D expenditure? Evidence from small and micro Chinese firms
Abstract:
Drawing on data from more than 3000 small and microChinese firms, this paper studies the determinants of R&D spending, focusing on the entrepreneurs’ attributes. The characteristics of an entrepreneur can be crucially relevant in determining investment by small and micro firms in a risky undertaking like R&D. Results show that male owners and college graduates are more likely to invest in R&D, while older owners are less likely to do so. Previous work and entrepreneurial experience contributed to the propensity to invest in R&D but work experience in the government do not matter. Regarding ownership attributes, individual owners are less likely to invest in R&D, whereas the effect of private ownership is statistically insignificant. Other than that, we find that higher firm sales spur R&D spending, with the influences of leverage and return on assets being statistically insignificant.
Journal: Applied Economics
Pages: 6098-6107
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2056572
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056572
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# input file: RAEC_A_2059437_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Aliaa El Shoubaki
Author-X-Name-First: Aliaa
Author-X-Name-Last: El Shoubaki
Author-Name: Issam Laguir
Author-X-Name-First: Issam
Author-X-Name-Last: Laguir
Author-Name: Rébecca Stekelorum
Author-X-Name-First: Rébecca
Author-X-Name-Last: Stekelorum
Author-Name: Jiří Hnilica
Author-X-Name-First: Jiří
Author-X-Name-Last: Hnilica
Title: CEO satisfaction and SME innovation: unveiling the role of family involvement
Abstract:
Family involvement in SMEs can affect strategic decisions about innovation. The differences in the innovative behaviours between family and nonfamily SMEs are mostly attributed to socioemotional wealth, which emphasizes the noneconomic goals of family firms. The literature on how family involvement affects firm innovation remains inconclusive. In this study, we distinguish the different steps of innovation and use CEO satisfaction with business performance to show that greater family involvement is ultimately good for innovation performance. We examine how CEO satisfaction with business performance affects firm innovation and, in particular, how family involvement affects this relationship. Using a sample of 308 Czech SMEs and multiple mediation and moderated mediation analyses, we find that high levels of family involvement enhanced SMEs innovation performance by strengthening the influence of CEO satisfaction on product innovation.
Journal: Applied Economics
Pages: 6160-6178
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2059437
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# input file: RAEC_A_2061901_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Adian McFarlane
Author-X-Name-First: Adian
Author-X-Name-Last: McFarlane
Author-Name: Anupam Das
Author-X-Name-First: Anupam
Author-X-Name-Last: Das
Author-Name: Leanora Brown
Author-X-Name-First: Leanora
Author-X-Name-Last: Brown
Author-Name: Kaycea Campbell
Author-X-Name-First: Kaycea
Author-X-Name-Last: Campbell
Title: The remittance-food security dynamics in Jamaica
Abstract:
It is an unsettled question whether the impact of remittance inflows (remittances) on food security is positive, negative, or null. We examine this question for Jamaica, the first for such a high remittance-receiving country. To start, we discuss the issues related to food security and remittances. Next, buttressed by theoretical underpinnings , we measure food security as calorie consumption and empirically evaluate how it is impacted by remittances in Jamaica over the period 1976 to 2019. We employ impulse response function analysis and Granger causality testing, within a robust vector error correction modelling framework. There are two key findings. First, we find a cointegrating relationship wherein the impulse analysis indicates that remittances positively impact calorie consumption in the long run, and vice versa. Second, we find that there is bidirectional Granger causality between remittances and calorie consumption. One implication of our findings is that remittances should form part of any broad developmental poverty alleviation polices, given their impact on promoting food security.
Journal: Applied Economics
Pages: 6202-6215
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061901
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061901
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# input file: RAEC_A_2058696_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Valentina Demchuk
Author-X-Name-First: Valentina
Author-X-Name-Last: Demchuk
Title: Does intra-bloc trade affect insurance companies’ performance? Evidence from North America
Abstract:
This paper examines the effects of intra-bloc trade on the earnings and operating expenses of insurance companies. The share of exports (imports) to other countries that are members of the trade agreement in the country’s exports (imports) of direct insurance services are used as relative measures of intra-bloc trade. We use data on insurance companies located in North America (Canada and the United States of America) from 2005 to 2018. The production function is assumed to be transcendental logarithmic. Results show that a higher share of other member countries in the exports of direct insurance services has a small impact on profits, yet it is only weakly statistically significant. It does, however, lead to lower operating expenses for non-life firms. A relatively higher import share is associated with increasing operating expenses of life insurance companies with an elasticity of 0.08% without significantly reducing profits.
Journal: Applied Economics
Pages: 6147-6159
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2058696
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# input file: RAEC_A_2059438_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mukesh K. Chaudhry
Author-X-Name-First: Mukesh K.
Author-X-Name-Last: Chaudhry
Author-Name: Vivek Bhargava
Author-X-Name-First: Vivek
Author-X-Name-Last: Bhargava
Author-Name: Henry Shelton Weeks
Author-X-Name-First: Henry Shelton
Author-X-Name-Last: Weeks
Title: Impact of economic forces and fundamental variables on REIT returns
Abstract:
We examine the impacts of economic forces and fundamental variables on REIT returns. Our models endogenously select breakpoints to distinguish the heterogenous nature of the underlying properties with varying risk-return characteristics. Default risk premium and unanticipated inflation had an adverse effect, while GDP and federal funds rate had a positive effect on REITs. Market, size and value risk-premiums are significant for time periods that include the GFC but not for subsequent periods. Momentum is negative and significant for extreme events, and insignificant during calm periods. Higher beta values during the GFC followed by lower beta values confirm ‘leveraging’ and ‘deleveraging’ effects.
Journal: Applied Economics
Pages: 6179-6201
Issue: 53
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2059438
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2059438
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# input file: RAEC_A_2083068_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Duane W. Rockerbie
Author-X-Name-First: Duane W.
Author-X-Name-Last: Rockerbie
Author-Name: Stephen T. Easton
Author-X-Name-First: Stephen T.
Author-X-Name-Last: Easton
Title: Race to the podium: separating and conjoining the car and driver in F1 racing
Abstract:
This paper provides a statistical estimate of the breakdown in race outcomes in Formula One races between the two most important inputs: driver skill and car technology. Financial data and racing results from the 2012–19 F1 seasons are used to estimate a combined driver and team fixed effects FGLS regression model for each season. Treating each season uniquely allows for the exclusion of weather and track specific variables common to other statistical studies of F1 racing. Our use of financial data provides an answer to the economic question of how should F1 teams allocate their scarce financial resources. The so-called “80-20” rule distinguishing team effects and driver effects is found to be a very rough approximation to the output shares for teams and drivers. A strong complementarity exists between driver skill and car technology that distorts the rule. The return to driver salaries and team budgets are both positive in term of race outcomes, but at diminishing rates.
Journal: Applied Economics
Pages: 6272-6285
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083068
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083068
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# input file: RAEC_A_2083065_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abdullah Mohammed Almalki
Author-X-Name-First: Abdullah Mohammed
Author-X-Name-Last: Almalki
Author-Name: Mehboob-ul Hassan
Author-X-Name-First: Mehboob-ul
Author-X-Name-Last: Hassan
Author-Name: Md Fouad Bin Amin
Author-X-Name-First: Md Fouad Bin
Author-X-Name-Last: Amin
Title: The asymmetric relationship between structural oil shocks and food prices: evidence from Saudi Arabia
Abstract:
This paper examines the impacts of structural oil shocks, namely, the index of industrial production, world production of oil, and spot crude oil prices on the food prices in Saudi Arabia between 1986 and 2020 using nonlinear autoregressive distributed lags (NARDL) and Structural Vector Autoregressive (S-VAR) models to capture both short- and long-run asymmetries between these variables. The asymmetry between industrial production and food price in the short- and long-run was revealed and the impact of negative shocks of industrial production on the food prices was dominant. This implies that lower economic activities result in declined industrial production and food shortage which exerts a hike in food prices. With respect to Saudi Arabia, a significant relationship between negative shocks in crude oil prices and food prices was found in short- as well as long-run periods. The estimations also reveal that increases in oil supply result in a decline in food prices decrease in both periods of time. Similarly, a positive association between GDP growth and food prices was found. Finally, the oil supply shocks are found as the main factor, followed by the oil demand shocks and crude oil prices, causing the food price variation in Saudi Arabia.
Journal: Applied Economics
Pages: 6216-6233
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083065
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083065
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# input file: RAEC_A_2083067_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yared Seid
Author-X-Name-First: Yared
Author-X-Name-Last: Seid
Title: Mother-tongue instruction and later labour market outcomes: evidence from a natural experiment in Ethiopia
Abstract:
This paper offers empirical evidence on the effect of mother-tongue instruction in primary school on students’ later labour market outcomes. Since Ethiopia has adopted mother-tongue instruction after the 1994 Ethiopian education reform, many students who have attended primary school after 1994 are exposed to mother tongue instruction, resulting in a variation in exposure to mother-tongue instruction by birth cohort. In Amhara state, Amharic is adopted as medium of instruction both before and after the education reform whereas other states in Ethiopia have changed the medium of instruction after the 1994 reform. The duration of students’ exposure to mother-tongue instruction, however, varies depending on the state in which they have attended primary school since states in Ethiopia mandate a switch from mother-tongue to English instruction either in grade 5, 7, or 9. Exploiting these two plausibly exogenous sources of variations (across states and birth cohorts) and using data from the 2013 Ethiopian Labour Force Survey, we estimate difference-in-differences model. Estimates from our preferred specifications suggest that mother-tongue instruction in primary school improves later labour market outcomes, but the size of its effect decreases with the number of years an individual was exposed to mother-tongue instruction in primary school.
Journal: Applied Economics
Pages: 6254-6271
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083067
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083067
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# input file: RAEC_A_2083069_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mehreen Mookerjee
Author-X-Name-First: Mehreen
Author-X-Name-Last: Mookerjee
Author-Name: Manini Ojha
Author-X-Name-First: Manini
Author-X-Name-Last: Ojha
Author-Name: Sanket Roy
Author-X-Name-First: Sanket
Author-X-Name-Last: Roy
Title: Fertility targets: linkages between desire for sons and sterilization in India
Abstract:
Sterilization is the most widely used form of family planning in India with the burden of sterilization falling almost entirely on women. The existence of a strong son preference and a male-biased sex ratio are also well known in India. In this paper, we investigate the inter-linkages between female sterilization and the desire for sons in the country. Specifically, we examine the causal impact of a woman’s fertility targets for sons being met on her sterilization decision. To measure whether her fertility target is met, we utilize information on her actual versus ideal number of sons. Exploiting exogenous variation in the sex of the firstborn as an instrument in a conditional mixed process estimation, we find that meeting her fertility target for sons increases the probability of a woman’s sterilization by 25.4% points. Moreover, once she has had her ideal number of sons, the probability of getting sterilized within 4 years of getting married increases by 9.4% points whereas delayed sterilization becomes less likely. Our estimates are robust to alternative estimation strategies.
Journal: Applied Economics
Pages: 6286-6302
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083069
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083069
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# input file: RAEC_A_2061904_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Anamika Anamika
Author-X-Name-First: Anamika
Author-X-Name-Last: Anamika
Author-Name: Sowmya Subramaniam
Author-X-Name-First: Sowmya
Author-X-Name-Last: Subramaniam
Title: Do news headlines matter in the cryptocurrency market?
Abstract:
The paper examines the influence of investor sentiment based on news headlines on the Cryptocurrency Market Index and ten individual cryptocurrency returns. We capture investors’ sentiment from cryptocurrency-specific news headlines. We use a lexicon-based Natural Language Processing (NLP) technique to construct a unique sentiment indicator, and the sentiment scores are generated using two financial dictionaries: Henry(2008)(HE) and Loughran and Mcdonald(2011)(LM). The findings of the study show that news sentiment has a significant impact on cryptocurrency returns. When the investors’ sentiment is optimistic or bullish, the cryptocurrency market experiences herding behaviour, leading to an increase in prices. The diverse and heterogeneous nature of the various cryptocurrencies causes each individual cryptocurrency to respond differently to sentiment. Further, we see that sentiment has a more pronounced impact on young, small, and volatile cryptocurrencies. Our study is among the few studies that use cryptocurrency-specific news headlines rather than news bodies to build a news sentiment indicator. JEL codes: E49, G14, G15
Journal: Applied Economics
Pages: 6322-6338
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061904
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061904
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# input file: RAEC_A_2083066_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mukhriz Izraf Azman Aziz
Author-X-Name-First: Mukhriz Izraf Azman
Author-X-Name-Last: Aziz
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Tatiana Sokolova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Sokolova
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: ASEAN-5 forex rates and crude oil: Markov regime-switching analysis
Abstract:
We investigate the influence of moves in oil prices on exchange rates of Indonesia, Malaysia, the Philippines, Singapore and Thailand (the ASEAN-5 countries). We disentangle oil shocks, representing them by three components: demand shock, supply shock and risk shock, and examine their impact on the ASEAN-5 exchange rates by employing high-/low-volatility Markov regime-switching regressions for the period 2006 to Beckmann, Czudaj, and Arora 2020. We find that demand shocks make forex rates increase for net oil-producing as well as net oil-consuming economies. The impacts of supply shocks on forex rates for most economies are rather low. The risk shocks lead to depreciating effects on the ASEAN-5 currencies, supporting the notion that the open-oriented nature of ASEAN-5 economies makes them susceptible to constant fluctuations in the global oil market.
We study interactions between the price of crude oil and exchange rates of the ASEAN-5 economies.We decompose changes in oil price into demand-, supply- and risk-driven components.We show non-linear interrelations between movements in forex rates and price of oil.Demand shocks appreciate forex rates for both net oil-producer and net oil-consumer economies.Supply-driven moves in oil prices exercise a marginal influence on forex rates for most countries.Risk shocks have depreciating effects on the ASEAN-5 exchange rates.
Journal: Applied Economics
Pages: 6234-6253
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083066
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# input file: RAEC_A_2083568_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kangoh Lee
Author-X-Name-First: Kangoh
Author-X-Name-Last: Lee
Title: Federalism and primary-income inequality
Abstract:
The paper studies the effects of federalism on primary-income (before taxes and transfers) inequality. A jurisdiction in a federal system chooses an economic policy for the interests of the jurisdiction, but the policy is determined uniformly at the national level in a unitary system. A jurisdiction with more resources can choose a higher level of public inputs such as productivity-enhancing investment and hence attract more businesses in a federal system, but a jurisdiction in a unitary system cannot. More business activities result in higher incomes, and income inequality is higher in a federal system than in a unitary system. The paper also provides an empirical analysis, and available evidence suggests that primary-income inequality is higher in a federal system.
Journal: Applied Economics
Pages: 6303-6321
Issue: 54
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2083568
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083568
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# input file: RAEC_A_2063790_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tu Van Binh
Author-X-Name-First: Tu Van
Author-X-Name-Last: Binh
Author-Name: Abay Mulatu
Author-X-Name-First: Abay
Author-X-Name-Last: Mulatu
Author-Name: Boying Xu
Author-X-Name-First: Boying
Author-X-Name-Last: Xu
Title: Corporate social responsibility & firm efficiency: evidence from endogenous cost inefficiency stochastic frontier analysis
Abstract:
This paper investigates the relationship between firms’ performance in corporate social responsibility (CSR) and cost efficiency. We use a newly developed panel data model of stochastic frontier analysis that endogenizes cost efficiency. The dataset consists of 1,673 firms from ten provinces in Vietnam over three years: 2009, 2011 and 2013. Our results suggest that CSR can enhance cost efficiency of firms. This positive effect of CSR on efficiency can be masked if cost efficiency is treated as exogenous or endogeneity is not handled appropriately. The upshot is that our results challenge the widely held view of the existence of a trade-off between CSR and firm efficiency.
Journal: Applied Economics
Pages: 6380-6392
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2063790
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2063790
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# input file: RAEC_A_2066061_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Juan Peng
Author-X-Name-First: Juan
Author-X-Name-Last: Peng
Author-Name: Jinhong Wang
Author-X-Name-First: Jinhong
Author-X-Name-Last: Wang
Author-Name: Jinqiang Yang
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Yang
Title: Pandemic options
Abstract:
We develop a pricing model for pandemic European call and put options, in which the underlying variable is the infected population. Interestingly, the economic predictions of the pandemic options are essentially different from the common stock option. For example, the value of pandemic call option is concave in the underlying variable and decreasing in the volatility. In addition, the maturity has ambiguous impact on the valuation of pandemic call option. We show that the basic reproduction number, the unique characteristics of pandemic, has a significant effect on the valuation of each options.
Journal: Applied Economics
Pages: 6437-6444
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2066061
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2066061
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# input file: RAEC_A_2064969_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jinqiang Xu
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Xu
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Author-Name: Hui Jiang
Author-X-Name-First: Hui
Author-X-Name-Last: Jiang
Title: Can China’s Aid Promotes the Value Added Exports of Recipient Countries?
Abstract:
This paper explores whether China’s aid is able to promote the value added exports of the recipient countries based on the fact that the gross export under the traditional accounting system can no longer reflect the current real trade gains of a country. The research results indicate that China’s aid can indeed effectively promote the value added exports of the recipient countries. Moreover, this paper used the interaction term between China’s foreign exchange reserve and the frequency of U.S. historical foreign aid as the instrumental variable to deal with the endogenous problem. In addition, the heterogeneity test shows that the geographical environment and development level of recipient countries will affect the relationship between China’s aid and the value added export of recipient countries. Finally, the mechanism test shows that improving the infrastructure conditions of recipient countries is an important channel for China’s aid to promote the value added export of recipient countries. These findings of our research provide both theoretical and empirical evidence for improving the efficiency of foreign aid.
Journal: Applied Economics
Pages: 6418-6436
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2064969
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2064969
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# input file: RAEC_A_2061905_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dror Parnes
Author-X-Name-First: Dror
Author-X-Name-Last: Parnes
Title: Spatial autocorrelation patterns among US commercial banks: before, during and after the subprime mortgage crisis
Abstract:
We study patterns of spatial autocorrelations of four customary performance measures (return on asset, return on equity, net interest margin, and loan loss reserves to total assets) among 49 commercial banks spread in the continental US from the first quarter of 2000 until the fourth quarter of 2010, before and after the subprime mortgage crisis. We use Moran’s I, Geary’s C, and Conley’s one-metric and two-metric spatial autocorrelation methodologies and discover mostly positive (negative) spatial autocorrelations before (during and after) the US subprime mortgage crisis. We also identify the unique influences of size and risk management practices in these commercial banks on the spatial autocorrelations within the two tested periods. Our findings suggest that among many US commercial banks, unifying economic features were more dominant before the crisis, but they were gradually replaced with dividing economic elements during and after this major financial calamity. Our robust evidence aim to highlight the influence of physical distances among commercial banks on their routine operations.
Journal: Applied Economics
Pages: 6339-6360
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061905
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061905
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# input file: RAEC_A_2064419_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mattias Boman
Author-X-Name-First: Mattias
Author-X-Name-Last: Boman
Title: The sample median as an estimator of population mean true willingness to pay under valuation uncertainty: a synthesis and analysis of the literature
Abstract:
This paper reviews the contingent valuation literature on hypothetical bias and valuation uncertainty, with special emphasis on measures of central tendency suitable for applied welfare analysis. In a theoretical scenario without valuation uncertainty, sample mean willingness to pay (WTP) is an estimator of population mean true WTP, the appropriate welfare measure. It is proposed here that this may not hold under valuation uncertainty. In this case, mean true WTP should be bounded by mean hypothetical WTP and mean actual WTP (in turn, mean actual WTP should exceed mean certain WTP). Based on a theoretical model and a review of existing empirical studies, median hypothetical WTP was found to be an estimator of mean true WTP. It is therefore proposed that contingent valuation researchers should consider using the sample hypothetical median as an estimator of population mean true WTP when supporting data on the degree of valuation uncertainty are absent. This could be a straightforward approach, e.g. in a low income country context, where the possibility of financing elaborate research designs accounting for valuation uncertainty is limited. It can also prove useful to revisit existing contingent valuation studies with these findings in mind.
Journal: Applied Economics
Pages: 6393-6405
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2064419
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2064419
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# input file: RAEC_A_2061906_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yinhe Liang
Author-X-Name-First: Yinhe
Author-X-Name-Last: Liang
Author-Name: Shuang Yu
Author-X-Name-First: Shuang
Author-X-Name-Last: Yu
Title: Does education help combat early marriage? The effect of compulsory schooling laws in China
Abstract:
This paper studies the relationship between education and early marriage by exploiting the 1986 Compulsory Schooling Laws in China. We find that one additional year of schooling decreases the probability of marriage before age 18 by 1.7% points and increases the age at first marriage by 0.734 years. We examine the role of labour market outcomes, marriage traditions, assortative mating, and peer marriage behaviours. We also find evidence that education decreases fertility outcomes and affects the marriage outcomes of the next generation. This suggests that policies aimed at combating early marriage could start with improving children’s educational attainment.
Journal: Applied Economics
Pages: 6361-6379
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2061906
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061906
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# input file: RAEC_A_2064420_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Manu Raghav
Author-X-Name-First: Manu
Author-X-Name-Last: Raghav
Author-Name: Timothy M. Diette
Author-X-Name-First: Timothy M.
Author-X-Name-Last: Diette
Title: Greek myth or fact? The role of Greek houses in alcohol and drug violations on American campuses
Abstract:
Greek-letter student social groups, better known as fraternities and sororities, are a ubiquitous feature on many American higher education campuses. These organizations, especially fraternities, have a reputation for encouraging unruly and improper behaviour among both members and non-members. This paper investigates the effect of the degree of prevalence of these Greek organizations at a campus, as measured by the percentage of students who are members of fraternities and sororities, on the instances of liquor and drug law violations on campuses, as measured by the number of arrests for liquor and drug laws violations. Using a unique dataset, which combines data from three sources, we address any potential selection bias by including several controls associated with party culture and through the inclusion of institution-level fixed effects. We find that a larger percentage of students in fraternities (but not sororities) is associated with an increase in the number of arrests for drug law violations. A larger percentage of students in sororities (but not the percentage of students in fraternities) is associated with a larger number of arrests for liquor law violations. This result is highly significant and is robust across various specifications.
Journal: Applied Economics
Pages: 6406-6417
Issue: 55
Volume: 54
Year: 2022
Month: 11
X-DOI: 10.1080/00036846.2022.2064420
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2064420
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# input file: RAEC_A_2069671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Siqi Li
Author-X-Name-First: Siqi
Author-X-Name-Last: Li
Author-Name: Yunjie Wu
Author-X-Name-First: Yunjie
Author-X-Name-Last: Wu
Title: Government subsidies, ownership structure and operating performance of state-owned enterprises: evidence from China
Abstract:
Government subsidies have been used as a policy tool by many countries. Given the importance of government subsidies in the context of Chinese economy and state-owned enterprises (SOEs), this study seeks to understand the role played by government subsidies in the operating performance of Chinese SOEs. Using panel data on Chinese SOEs to construct the fixed-effects regression models, this study examines the effects of government subsidies and explores the moderating role of ownership structure in the correlation between government subsidies and operating performance of SOEs. Government subsidies have improved the operating performance of SOEs through easing financial constraints and stimulating research investment. However, high proportion of state-owned shares is not conducive to the positive effect of subsidies. The heterogeneous analyzes show, for SOEs located in eastern China, at the local level or with a higher R&D level, an increase in state-owned shares is more detrimental to the positive effect of subsidies on their performance. Tax-based-subsidies have significantly positive effect on the operating performance of SOEs, with the state-owned shares exerting a negative moderating effect on this positive correlation. Based on the empirical findings, we propose some policy suggestions for the mixed ownership reform of Chinese SOEs and reasonable allocation of government subsidies.
Journal: Applied Economics
Pages: 6480-6496
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2069671
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2069671
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# input file: RAEC_A_2071829_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Michel Cândido de Souza
Author-X-Name-First: Michel Cândido
Author-X-Name-Last: de Souza
Title: Modeling Ambiguity and Risk in Inflation Expectations: Empirical Analysis for Brazil
Abstract:
For developing economies, agents’ disagreement (risk) about future inflation can be tricky, mostly when the range of possibilities is not clear (ambiguity). We use the Brazilian survey of inflation forecasts to model ambiguity and risk in inflation expectations, considering 1, 6, and 12 months ahead. Our results indicate that an ambiguity inflation expectations shock (6 and 12 months time window) can negatively affect Brazilian economic cycles. On the other hand, risk shocks seem to have a moderate and significant effect only for 1 month ahead of expectations. This evidence shows that the maintenance of short and medium-run monetary policies, such as forward guidance, may depend on dynamics that go beyond first-order volatility.
Journal: Applied Economics
Pages: 6521-6535
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2071829
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2071829
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# input file: RAEC_A_2066619_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Marcelo Florensa
Author-X-Name-First: Marcelo
Author-X-Name-Last: Florensa
Author-Name: David Giuliodori
Author-X-Name-First: David
Author-X-Name-Last: Giuliodori
Author-Name: Alejandro Rodriguez
Author-X-Name-First: Alejandro
Author-X-Name-Last: Rodriguez
Title: The price elasticity of casino gambling: a case study in Argentina
Abstract:
This paper expands on the scarce literature about the demand for casino gaming, particularly on electronic gaming machines (EGM). A dynamic panel data model is proposed for estimating the price elasticity of demand for slot machines in casinos located in Argentina. As far as we know, no similar study for Argentina or any other Latin American country has been previously conducted. In our study, the estimation of the elasticity coefficients was carried out by means of a procedure that corrects the construction bias generated by the model, something that has not been applied in the literature so far. The results, unlike most of the literature, show elasticity values greater than one in absolute value. Additionally, elasticities observed for touristic regions were greater (in absolute value) than for non-tourist areas.
Journal: Applied Economics
Pages: 6445-6455
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2066619
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2066619
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# input file: RAEC_A_2066620_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jaimin Lee
Author-X-Name-First: Jaimin
Author-X-Name-Last: Lee
Author-Name: Minjung Kim
Author-X-Name-First: Minjung
Author-X-Name-Last: Kim
Title: Internal and outsourced research and development: are they complements or substitutes?
Abstract:
A theoretically ambiguous relationship exists between internal and outsourced research and development (R&D). Along these lines, previous empirical studies report mixed results regarding the nexus between these two broad forms of R&D activity. Using a firm-level unbalanced panel dataset from South Korea for the period 2006–2018, this study investigates the relationship between internal and outsourced R&D while considering the sunk cost of internal R&D activity and the technology level of firms. We find that the relationship between internal and outsourced R&D depends on the level of industry technology and the size of firms. A complementarity exists between internal and external R&D for larger firms in high-technology industries, while a substitutive relationship is discovered for small and medium-sized firms in medium- and low-technology industries. The results suggest that the complementary or substitutive nature of the relationship between internal and external R&D depends on the industry’s technology level and firm size.
Journal: Applied Economics
Pages: 6456-6466
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2066620
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2066620
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# input file: RAEC_A_2066621_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhuwei Li
Author-X-Name-First: Zhuwei
Author-X-Name-Last: Li
Author-Name: Xuejiao Lu
Author-X-Name-First: Xuejiao
Author-X-Name-Last: Lu
Author-Name: Yuan Fu
Author-X-Name-First: Yuan
Author-X-Name-Last: Fu
Title: Interaction influence of trading rules on the quality of stock markets: the price limit rule and day trading rule from the Shanghai and Shenzhen Stock exchanges
Abstract:
The effect of each trading rule is not completely independent. From the perspective of market differentiation, we establish the linear simultaneous equation model to study the comprehensive influence of the price limit rule and the day trading rule on the quality of China’s stock market and investigate whether it is a synergistic or an anti-synergistic effect. To eliminate the influence of other factors before or after the reform of the trading rules, we establish the difference-in-difference simultaneous equation model for further testing. Results show that when the stock market is divided into the Shanghai A-share market, the Shanghai B-share market, the Shenzhen A-share market, and the Shenzhen B-share market, the simultaneous implementation of the price limit rule and T + 1 trading rule significantly reduces the liquidity and market efficiency of the stock market, significantly increases the volatility of markets, and does harm to the market quality. The interaction effect further aggravates the adverse impact of a single trading rule on the liquidity and market efficiency of the stock market, and weakens the beneficial impact of implementing a single trading rule to stabilize the market. The interaction effect has an anti-synergistic effect, and the results are robust.
Journal: Applied Economics
Pages: 6467-6479
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2066621
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2066621
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# input file: RAEC_A_2069672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Masahito Kobayashi
Author-X-Name-First: Masahito
Author-X-Name-Last: Kobayashi
Author-Name: Jinghui Chen
Author-X-Name-First: Jinghui
Author-X-Name-Last: Chen
Title: Analyzing the EU sovereign debt crisis by a new asymmetric copula with reversible correlations
Abstract:
It is well known that a correlation between stock and bond returns had changed in the financial crisis. This paper analyzes it using a novel asymmetric copula. The proposed test is constructed from bivariate split normal distribution and can change correlation signs of upper and lower tails of distribution independently. It is shown that the stock–bond correlation of the EU periphery countries in the capital outflow period is asymmetric, in that it is higher in the lower tail than in the upper tail. The lower tail correlation is higher when capital outflowed than in the calm period. The lower tail correlation sign in the inflow period was at odds; Ireland, Italy and Spain had negative lower tail correlation. The correlation reversion of these three countries can be explained by the change of capital movement from inflow to outflow. In contrast, Germany had negative stock–bond correlation before and after the crisis.
Journal: Applied Economics
Pages: 6497-6509
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2069672
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2069672
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# input file: RAEC_A_2070594_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: George Deltas
Author-X-Name-First: George
Author-X-Name-Last: Deltas
Author-Name: Hui Wen
Author-X-Name-First: Hui
Author-X-Name-Last: Wen
Title: Do voluntary corporate activities lead to reporting regulation? evidence from corporate social responsibility
Abstract:
Governments and regulators often introduce reporting standards to encourage desirable corporate activities through increasing information quality. Firms that voluntarily take socially desirable activities directly benefit from these standards by being better able to distinguish them against rivals in the product market or with respect to investors. Using a cross-country panel dataset, we find that, at an annual frequency, Corporate Social Responsibility (CSR) reports increase the prevalence of voluntary CSR reporting standards, but little evidence that the converse is true. Thus, at least in the short-run, reporting standards act as an ex-post certification for firms with high CSR activity rather than as an ex-ante incentive for corporate behaviour.
Journal: Applied Economics
Pages: 6510-6520
Issue: 56
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2070594
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2070594
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# input file: RAEC_A_2073330_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amado Peiró
Author-X-Name-First: Amado
Author-X-Name-Last: Peiró
Title: Predicting stock returns: some European evidence
Abstract:
This paper examines the predictability of stock returns for different European sectors. Using monthly returns from 14 industries for the period 1988–2019, it is found that past movements in some industries do help to forecast future movements in other industries. Nevertheless, results also show that this relationship emerges in the years between 1999–2009, but disappears afterwards.
Journal: Applied Economics
Pages: 6596-6604
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2073330
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2073330
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# input file: RAEC_A_2072806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shuai Chen
Author-X-Name-First: Shuai
Author-X-Name-Last: Chen
Author-Name: Zhenzheng Meng
Author-X-Name-First: Zhenzheng
Author-X-Name-Last: Meng
Author-Name: Chen Ji
Author-X-Name-First: Chen
Author-X-Name-Last: Ji
Author-Name: Ying Zhang
Author-X-Name-First: Ying
Author-X-Name-Last: Zhang
Title: Unintended effects of water regulation on household livelihood: evidence from China
Abstract:
This study examines the unintended effects of the water regulation on household livelihood in China, from the perspective of Engel coefficient. Applying county-level water regulation dataset and CFPS household dataset in a difference-in-difference-difference (DDD) specification, the research finds that the regulation increases the Engel coefficient by an additional 2.6%. Mechanism analyses show that water regulation influences the Engel coefficient through increasing household food expenditure, as it also causes local market fluctuations in meat products. Overall, this study sheds new light on the economic costs of environmental regulation.
Journal: Applied Economics
Pages: 6580-6595
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2072806
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2072806
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# input file: RAEC_A_1951441_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Noriyuki Kunimoto
Author-X-Name-First: Noriyuki
Author-X-Name-Last: Kunimoto
Author-Name: Kazuhiko Kakamu
Author-X-Name-First: Kazuhiko
Author-X-Name-Last: Kakamu
Title: Is Bitcoin really a currency? A viewpoint of a stochastic volatility model
Abstract:
Using an asymmetric stochastic volatility model, this study investigates the day-of-the-week and holiday effects on the returns and volatility of Bitcoin from 1 January 2013 to 31 August 2019; in this context, we also discuss the characteristics of Bitcoin as a financial asset. The results of the estimation are threefold. First, the finding shows a small day-of-the week effect in volatility on Saturday and Sunday than in the rest of the week. Second, although the holiday effects are examined in active trading countries, namely Japan, China, Germany, and the United States, the positive post-holiday effect on the returns and weak positive pre-holiday effect on the volatility are only observed in the United States. Finally, the asymmetry effect is not observed. A comparison of Bitcoin to several assets such as stock, currency, and gold shows Bitcoin’s positioning between stock, currency, and gold in relation to the week and holiday effects, its reaction to federal funds and medium of exchange characteristics, and the lack of asymmetry effect.
Journal: Applied Economics
Pages: 6536-6550
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2021.1951441
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1951441
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# input file: RAEC_A_2072465_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jae Ho Yoon
Author-X-Name-First: Jae Ho
Author-X-Name-Last: Yoon
Author-Name: Katarzyna Anna Nawrot
Author-X-Name-First: Katarzyna Anna
Author-X-Name-Last: Nawrot
Title: Impact of Brexit on G7 properties
Abstract:
In this article, we adopted the Full Information Maximum Likelihood (FIML) Markov-switching model of Yoon to examine the contribution of the UK housing business cycle to the common G7 housing business cycle between housing price and GDP seeking to access the impact of Brexit on G7 properties. Taking a sample of G7 countries we investigated a period of over 50 years, using quarterly data from 1970:II to 2020:IV. Our findings demonstrate that UK GDP is a significant variable contributing to the G7 GDP growth, and furthermore that the UK housing price is a significant variable to the G7 housing prices. Considering common international housing business cycle, we found that the UK is not a significant variable for determining the common international housing business cycle between housing price and the real growth of output in the G7 countries. Finally, applying a FIML Markov-switching model to the G7 countries, we found a common international housing business cycle during the oil shock periods of the 1970s, the financial crisis in 2008, and COVID-19 pandemic. These findings are the first empirical evidence of the comparison of COVID-19 pandemic and other crises in terms of common international housing business cycle, thus providing significant input for policymakers.
Journal: Applied Economics
Pages: 6551-6558
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2072465
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2072465
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# input file: RAEC_A_2073959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Daniela Bragoli
Author-X-Name-First: Daniela
Author-X-Name-Last: Bragoli
Author-Name: C. Burlina
Author-X-Name-First: C.
Author-X-Name-Last: Burlina
Author-Name: F. Cortelezzi
Author-X-Name-First: F.
Author-X-Name-Last: Cortelezzi
Author-Name: G. Marseguerra
Author-X-Name-First: G.
Author-X-Name-Last: Marseguerra
Title: Banking proximity and firm performance. The role of small businesses, community banks and the credit cycle
Abstract:
This article analyses the link between banking geography and firm performance, i.e. whether the proximity within banks and between banks and borrowers has a positive impact on firms’ Returns on Assets (ROA).Using a unique dataset of Italian manufacturing firms and banks from 2006 to 2011 and an instrumental variable approach to account for endogeneity, we investigate whether this effect increases with the presence of community banks and small businesses and whether the relationship changes over the credit boom and bust, which preceded and followed the Lehman Brothers collapse.We show that geographical proximity matters for firm performance especially when the presence of community banks is high and when considering small (micro) firms. During the credit boom, both functional distance and operational proximity seem to matter, whereas, during the credit crunch, operational proximity has a more relevant role compared to functional distance in becoming an important driver to increase firm’s performance.
Journal: Applied Economics
Pages: 6605-6624
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2073959
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2073959
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# input file: RAEC_A_2078779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Li Yang
Author-X-Name-First: Li
Author-X-Name-Last: Yang
Author-Name: Zhechen Geng
Author-X-Name-First: Zhechen
Author-X-Name-Last: Geng
Title: Impact of Digital Financial Inclusion on Optimization of Employment Structure: Evidence from China
Abstract:
Digital financial inclusion plays an important role in optimization of employment structure. In this article, we use panel data on 29 provinces over the period 2011 to 2018 to analyse the impact of digital financial inclusion on optimization of employment structure in China. The instrumental variables method (FE and 2SLS) is adopted to test the relationship empirically. Taking full consideration of endogeneity and verifying their robustness, our results show that digitally inclusive finance significantly drives optimization of employment structure in China, and the effect is heterogeneous. Digital financial inclusion has a significant driving effect on optimization of employment structure in eastern China. In central and western China, the driving impact is insignificant, more so in the former than the latter. We conduct further analysis, showing a positive effect of three dimensions of digital financial inclusion on employment structure optimization. From the perspective of promotion, from strong to weak, they are the depth, width and digitization of digital financial inclusion.
Journal: Applied Economics
Pages: 6625-6638
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2078779
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2078779
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# input file: RAEC_A_2072466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chaofan Chen
Author-X-Name-First: Chaofan
Author-X-Name-Last: Chen
Author-Name: Yongsheng Lin
Author-X-Name-First: Yongsheng
Author-X-Name-Last: Lin
Author-Name: Ning Lv
Author-X-Name-First: Ning
Author-X-Name-Last: Lv
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Yawen Sun
Author-X-Name-First: Yawen
Author-X-Name-Last: Sun
Title: Can government low-carbon regulation stimulate urban green innovation? Quasi-experimental evidence from China’s low-carbon city pilot policy
Abstract:
Existing studies on the innovation effect of environmental regulation lack causal identification and do not distinguish between the types of innovation. This study regards China’s low-carbon city pilot policy (LCCPP) as a quasi-natural experiment and evaluates the impact of LCCPP on urban green innovation represented by green patents. We found that as a comprehensive government low-carbon regulation, LCCPP has significantly promoted urban green innovation and increased the annual average number of green invention patent applications by approximately 320, green utility model patent applications by approximately 210, and the total number of green patent applications by approximately 530. LCCPP can promote green innovation through capital allocation, structural upgrading, investment promotion, and comprehensive governance effects. Moreover, the impact of LCCPP on green innovation demonstrates heterogeneity. LCCPP has a greater positive effect on green innovation in energy conservation, waste management, and alternative energy and is more effective in stimulating green innovation in large cities, cities in developed eastern regions, and cities rich in educational resources. Our study verifies the existence of the Porter hypothesis in China on a city scale and indicates that, for developing countries, a comprehensive low-carbon regulation that combines mandatory and market-based instruments would be preferable for promoting green innovation.
Journal: Applied Economics
Pages: 6559-6579
Issue: 57
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2072466
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# input file: RAEC_A_2078780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Beatrice Baaba Tawiah
Author-X-Name-First: Beatrice Baaba
Author-X-Name-Last: Tawiah
Title: Does education have an impact on patience and risk willingness?
Abstract:
We analyse the causal effect of education on patience (also known as time preference) and risk willingness using the German compulsory schooling reform, which took effect in West Germany after World War II. This reform increased compulsory schooling from 8 years to 9 years. We use two-stage least squares to obtain causal effects. In line with the literature, the results show a positive effect of education on risk willingness mainly for those who were the immediate partakers of the reform. Contrary to the literature, a negative effect of education on patience is found. This effect is larger as more years around the pivotal years are considered.
Journal: Applied Economics
Pages: 6687-6702
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2078780
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2078780
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# input file: RAEC_A_2075823_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Farrukh Javed
Author-X-Name-First: Farrukh
Author-X-Name-Last: Javed
Author-Name: Tamás Kiss
Author-X-Name-First: Tamás
Author-X-Name-Last: Kiss
Author-Name: Pär Österholm
Author-X-Name-First: Pär
Author-X-Name-Last: Österholm
Title: Performance analysis of nowcasting of GDP growth when allowing for conditional heteroscedasticity and non-Gaussianity
Abstract:
The nowcasting performance of autoregressive models for GDP growth are analysed in a setting where the error term is allowed to be characterized both by conditional heteroscedasticity and non-Gaussianity. Standard, publicly available, quarterly data on GDP growth from 1979 to 2019 for six countries are employed: Australia, Canada, France, Japan, the United Kingdom and the United States. In-sample analysis suggests that when homoscedasticity is assumed, support is provided for non-Gaussian error terms; the estimated degrees of freedom of the t-distribution lie between two and seven for all countries. However, allowing for both conditional heteroscedasticity and t-distributed innovations, results indicate that conditional heteroscedasticity captures the fat-tailed behaviour of the data to a large extent. Results from out-of-sample analysis show that point nowcasts are hardly affected by taking conditional heteroscedasticity and/or non-Gaussianity into account. For the density nowcasts, it is found that accounting for conditional heteroscedasticity leads to improvements for Australia, Canada, Japan, the United Kingdom and the United States; allowing for non-Gaussianity seems less important though. This result is robust to which measure is used for assessing density nowcasting performance.
Journal: Applied Economics
Pages: 6669-6686
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2075823
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2075823
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# input file: RAEC_A_2081662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yusuke Fushiki
Author-X-Name-First: Yusuke
Author-X-Name-Last: Fushiki
Author-Name: Katsuhiro Saito
Author-X-Name-First: Katsuhiro
Author-X-Name-Last: Saito
Title: Continue or cease? A method to identify credit constraints under policy intervention and an implication for policy efficiency
Abstract:
In this study, we consider the problem whereby policy intervention in the financial market might hide the existence of credit constraints. We develop a theoretical model of the representative borrower utilizing credit from private banks and a governmental financial institution. Using the exogenous change in the transaction technology for borrowing from the governmental institution, we can identify the existence of credit constraints even if the policy remains in the market. Additionally, our model shows that the inefficiency of policy intervention is larger when we consider the borrower’s choice of optimal effort.
Journal: Applied Economics
Pages: 6716-6725
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2081662
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2081662
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# input file: RAEC_A_2078781_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: João Ricardo Faria
Author-X-Name-First: João Ricardo
Author-X-Name-Last: Faria
Author-Name: Franklin G. Mixon
Author-X-Name-First: Franklin G.
Author-X-Name-Last: Mixon
Title: Do professors’ wages depend on students’ earnings?
Abstract:
Survey data indicate that the average salary of full professors in the U.S. and the average starting salary of new college graduates in the U.S. have both grown over each of the past eight years. The positive association between these survey data is intuitively appealing in that if greater demand for education comes as a consequence of higher annual earnings accruing to individuals with more education, then an increase in the starting salaries of new college graduates should lead to an increase in the wages of college and university faculty. This paper is the first to study whether the demand for professors is derived from the demand for higher education. To do so, we model the interactions between the academic labour market and the market for college and university graduates, and we show that, in equilibrium, academic wages are independent of students’ earnings. This main characteristic of the equilibrium conditions of our formal model is supported by empirical analysis.
Journal: Applied Economics
Pages: 6703-6715
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2078781
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2078781
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# input file: RAEC_A_2075539_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tianyuan Luo
Author-X-Name-First: Tianyuan
Author-X-Name-Last: Luo
Author-Name: Genti Kostandini
Author-X-Name-First: Genti
Author-X-Name-Last: Kostandini
Title: The wage impacts of intensified immigration enforcement on native and immigrant workers
Abstract:
We examine the heterogeneous wage effects of E-Verify adoption on natives and immigrants by industry and skill level using a Difference-in-Differences model. The results suggest that immigrant workers in low-skilled occupations (e.g. manual laborer, low-skill services, and craft workers) in the manual industry experience a decrease in wages after E-Verify adoption, while immigrant workers who are high school graduates and those that have clerical and sales positions in the service and retail trade industries experience a wage increase. We find insignificant changes in the wage level of native workers of all skill levels. E-Verify did not effectively improve the wage level of native workers because the impacts seem to be absorbed by immigrant workers.
Journal: Applied Economics
Pages: 6656-6668
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2075539
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2075539
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# input file: RAEC_A_2081663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yusui Tang
Author-X-Name-First: Yusui
Author-X-Name-Last: Tang
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: M. I. M. Wahab
Author-X-Name-First: M. I. M.
Author-X-Name-Last: Wahab
Author-Name: Yu Wei
Author-X-Name-First: Yu
Author-X-Name-Last: Wei
Title: Does the US stock market information matter for European equity market volatility: a multivariate perspective?
Abstract:
This research investigates whether the US stock volatility index (S&P 500 index) has the forecasting ability to predict the volatility of CAC index (France), DAX index (Germany), and FTSE index (the UK) by employing a multivariate heterogeneous autoregressive realized volatility jump (MHAR-RV-CJ) model. Our empirical results provide consolidated comparisons using univariate and multivariate models. The in-sample results show us the US volatility will improve the long-term volatility regression coefficient. Moreover, our proposed model, the MHAR-RV-CJ model, nearly surpasses all competing models at out-of-sample forecasting, indicating that considering the multivariate DCC-GARCH information between US-France, US-Germany, and US-UK stock markets and jump component structures can help to predict individual European stock market volatility. Unsurprisingly, several forecasting evaluation tests and further analysis (high/low volatility) confirm the robustness of our results.
Journal: Applied Economics
Pages: 6726-6743
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2081663
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2081663
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# input file: RAEC_A_2074361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sergio Destefanis
Author-X-Name-First: Sergio
Author-X-Name-Last: Destefanis
Author-Name: Francesco Addesa
Author-X-Name-First: Francesco
Author-X-Name-Last: Addesa
Author-Name: Giambattista Rossi
Author-X-Name-First: Giambattista
Author-X-Name-Last: Rossi
Title: The impact of COVID-19 on home advantage: a conditional order-m analysis of football clubs’ efficiency in the top-5 European leagues
Abstract:
This study aims to contribute to the recent literature on the effects of COVID on football teams’ performance, focusing on the impact of ghost games on offensive and defensive technical efficiency. Using season-level data for the top 5 European leagues, a novelty for efficiency studies on football, the analysis compares the ten seasons played before the pandemic outbreak with the only season (2020–21) almost entirely played behind closed doors. A further novel contribution is the methodology – conditional order-m – applied to calculate efficiency scores. Our results show that in the post-COVID season both offensive and defensive efficiency significantly increased for away games, whereas for home games offensive efficiency shows a very slight increase, and defensive efficiency remains basically unchanged. These findings are valid for all the five leagues and provide evidence of a generalized reduction in the home advantage.
Journal: Applied Economics
Pages: 6639-6655
Issue: 58
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2074361
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2074361
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# input file: RAEC_A_2082370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jinjie Zhu
Author-X-Name-First: Jinjie
Author-X-Name-Last: Zhu
Author-Name: Shulin Liu
Author-X-Name-First: Shulin
Author-X-Name-Last: Liu
Title: An economic analysis of maximally representative allocations
Abstract:
Within online advertising, there has been remarkable growth in display advertising. Our study focuses on the publisher’s allocation of its targeted advertising inventory – to this end, we employ the Hotelling model and use maximally representative allocation in our calculations. We then determine the supremum and infimum prices of a guaranteed contract allocated to advertisers. Rather significantly, our model provides a hybrid channel strategy for a publisher that allows the traditional method of targeted advertising and real-time bidding to coexist. We thus demonstrate the difference in each strategy’s outcome. The study reveals that the revenue of the publisher increases when it employs a hybrid channel strategy. Further, advertisers can bid for real-time bidding impressions in pursuit of high user conversion and simultaneously purchase a guaranteed contract in advance to reduce risk under conditions of sufficient funding.
Journal: Applied Economics
Pages: 6744-6754
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2082370
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2082370
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# input file: RAEC_A_2083766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chia-Chi Wang
Author-X-Name-First: Chia-Chi
Author-X-Name-Last: Wang
Title: Does a multi-product firm adopt environmental corporate social responsibility voluntarily?
Abstract:
This paper considers a vertically related market to analyse the effect of implementing environmental corporate social responsibility (ECSR) for a multi-product firm. A downstream multi-product firm that implements ECSR needs to buy a key component from an upstream monopolist. We present some interesting results. First, the effect of implementing ECSR on a firm’s profit is ambiguous. Adopting ECSR may increase the multi-product firm’s profit if the production causes mild environmental damage. In other words, a multi-product firm may benefit from implementing ECSR. Second, a multi-product firm implementing ECSR may alleviate the problem of double marginalization. Third, implementing ECSR may even bring about a triple-win (win-win-win) situation where the multi-product firm is able to simultaneously improve its total profit, environmental quality, and social welfare.
Journal: Applied Economics
Pages: 6797-6808
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083766
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083766
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# input file: RAEC_A_2083767_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Liwei Guo
Author-X-Name-First: Liwei
Author-X-Name-Last: Guo
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Title: Does agricultural mechanisation promote agricultural TFPG? Evidence from spatial panel data in China
Abstract:
Does the promotion of agricultural mechanization level have spatial driving effects on the agricultural total factor productivity growth (TFPG)? Based on spatial panel data from 2000 to 2019, we begin by measuring agricultural TFPG, then incorporating spatial econometric models as well as carrying out spatial regression to first explore the influence agricultural mechanization level has on the agricultural TFPG. Meanwhile, we also perform decomposition of the spatial regression results to further study the spatial spillover effects performed by agricultural mechanization. The study suggests that the promotion of agricultural mechanization level has exerted significant spatial spillover effects on the agricultural TFPG, especially in the eastern and northeast regions of China, demonstrating obvious radiation effects, whereas the central and western regions may not produce such intense spatial spillovers due to the pattern of agricultural development. The results could not only enhance the understanding of agricultural mechanization on the agricultural TFPG but also produce constructive implications for optimizing the spatial layout of agricultural mechanization development, promoting agricultural development according to local conditions and formulating reasonable agricultural economic development policies.
Journal: Applied Economics
Pages: 6809-6828
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083767
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083767
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# input file: RAEC_A_2083570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rohan Best
Author-X-Name-First: Rohan
Author-X-Name-Last: Best
Author-Name: Rabindra Nepal
Author-X-Name-First: Rabindra
Author-X-Name-Last: Nepal
Title: Saving and subsidies for solar panel adoption in Nepal
Abstract:
Greater use of household solar-panel systems has the potential to improve energy access and affordability while reducing the risk of climate change. This article uses a survey of 6,000 households in Nepal, a developing economy, to enhance understanding of the factors driving solar-system uptake by households. A key contribution is the breadth of analysis. We find important influences for economic, social, and locational factors. In contrast, physical dwelling aspects, such as roof material, appear to be less important. Social influences explain extra variation in solar-panel uptake, when comparing social and economic influences, although some variables could be classified in multiple categories. For example, membership in a women’s saving and credit cooperative is a socioeconomic factor that is associated with greater solar-panel adoption. Socioeconomic factors may be the most important for future policy innovations, given that existing policy already focuses on location. For instance, this article finds that solar adoption has been much higher in the most supported regions for the Renewable Energy Subsidy Policy.
Journal: Applied Economics
Pages: 6768-6783
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083570
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# input file: RAEC_A_2083571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xu Wu
Author-X-Name-First: Xu
Author-X-Name-Last: Wu
Author-Name: Ling-Ling Li
Author-X-Name-First: Ling-Ling
Author-X-Name-Last: Li
Title: Fractal characteristics analysis and fluctuation trend prediction of commercial bank funding liquidity
Abstract:
Funding liquidity has been considered as the lifeline of commercial banks. If there are abnormal fluctuations in funding liquidity, it may lead to bank runs, which may bring about the destruction of commercial banks and even spread to cause a financial crisis. Therefore, exploring the fluctuation characteristics and trend prediction of commercial bank funding liquidity has traditionally attracted much attention. Based on this, this paper analyzes the fluctuation characteristics of commercial bank funding liquidity by Multi-Fractal Detrended Fluctuation Analysis (MF-DFA), and innovatively uses the Moving Trend Entropy Dimension (MTED) for commercial bank funding liquidity fluctuation trend prediction. The results of the study show that the commercial bank funding liquidity is multifractal, so it has predictability; MTED can not only accurately predict the fluctuation trend of commercial bank funding liquidity, but also has robustness. Through effective monitoring of funding liquidity, commercial banks can develop their funding liquidity risk management programs and improve the effectiveness of their own funding liquidity risk control. At the same time, regulators can also achieve the goal of preventing and resolving funding liquidity risks as well as maintaining financial stability.
Journal: Applied Economics
Pages: 6784-6796
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083571
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083571
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# input file: RAEC_A_2083569_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zheming Yan
Author-X-Name-First: Zheming
Author-X-Name-Last: Yan
Author-Name: Rui Shi
Author-X-Name-First: Rui
Author-X-Name-Last: Shi
Author-Name: Kerui Du
Author-X-Name-First: Kerui
Author-X-Name-Last: Du
Author-Name: Lan Yi
Author-X-Name-First: Lan
Author-X-Name-Last: Yi
Title: The role of green production process innovation in green manufacturing: empirical evidence from OECD countries
Abstract:
Under the climate change background, green manufacturing is a critical path to realizing a low-carbon economy. The role of green products from manufacturing in economy-wide green transition has been discussed in the literature. In contrast, innovation in the industrial process, an important driver of climate change, has seldom been studied. This paper investigates the impact of green production process innovation on green manufacturing production using a fixed-effect SFA model. Furthermore, we discuss whether the impact of green production process innovation is conditioned on the economic development level, using a newly developed partial linear functional model. The results show that green production process innovation benefits green manufacturing, promoting sectoral carbon and energy efficiency. This paper further proposes policy implications, based on the findings that the green production process innovation’s marginal effects vary with economic development level.
Journal: Applied Economics
Pages: 6755-6767
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2083569
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083569
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# input file: RAEC_A_2084017_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ruifeng Liu
Author-X-Name-First: Ruifeng
Author-X-Name-Last: Liu
Author-Name: Jian Wang
Author-X-Name-First: Jian
Author-X-Name-Last: Wang
Author-Name: Fei Liang
Author-X-Name-First: Fei
Author-X-Name-Last: Liang
Author-Name: Yefan Nian
Author-X-Name-First: Yefan
Author-X-Name-Last: Nian
Author-Name: Hengyun Ma
Author-X-Name-First: Hengyun
Author-X-Name-Last: Ma
Title: What we can learn from the interactions of food traceable attributes? a case study of Fuji apple products in China
Abstract:
Using a face-to-face consumer survey in six cities across China to obtain stated-preference data from a choice experiment, this paper examines consumers’ preferences and willingness-to-pay for Fuji apple products’ food traceability, certification and region of origin claims attributes. The results show that consumers are willing to pay a positive premium for food traceable attributes. The paper finds strong complementary effects between food traceable attributes. Besides, substitution and complementary effects between attributes vary over the sample cities. In addition, there is less overlap in the value of certain food attributes in some cities. These findings provide insights into the marketing management strategies.
Journal: Applied Economics
Pages: 6829-6849
Issue: 59
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084017
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084017
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# input file: RAEC_A_2084024_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xianhang Qian
Author-X-Name-First: Xianhang
Author-X-Name-Last: Qian
Author-Name: Xue Yang
Author-X-Name-First: Xue
Author-X-Name-Last: Yang
Title: Supervisory independence and banks’ non-performing loans: quasi-experimental evidence from China
Abstract:
This paper utilizes the turnover of head of local banking supervisory branches accompanied with the merger of China’s banking and insurance regulatory authorities as a quasi-experiment and analyses the impact of supervisory independence on banks’ non-performing loans. The difference-in-difference estimates indicate that in regions with heads of local supervisory branches from other geographic branches, banks’ non-performing loan ratios will decline. The impact of supervisory independence is more pronounced in regions with lower financial marketization. It further shows that supervisory independence can reduce total loan amounts, medium-and-long-term loans, and enterprise loans, and clarifies the impacting mechanisms of supervisory independence on banks’ non-performing loans.
Journal: Applied Economics
Pages: 6938-6948
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084024
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# input file: RAEC_A_2084018_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Juan Lin
Author-X-Name-First: Juan
Author-X-Name-Last: Lin
Author-Name: Ximing Wu
Author-X-Name-First: Ximing
Author-X-Name-Last: Wu
Author-Name: Panye Yang
Author-X-Name-First: Panye
Author-X-Name-Last: Yang
Title: Dynamic dependence and risk spillovers between RMB onshore spot and offshore NDF markets
Abstract:
This paper investigates the dependence structure between the renminbi (RMB) onshore spot and offshore NDF markets using a GARCH-dynamic copula model. We document that the central parity reform in August 2015 marked a structural change in the dependence structure between the onshore spot and offshore NDF markets. Since the reform, the conditional correlation and tail dependence between the two markets have significantly increased and exhibited apparent time-varying patterns. We show that the difference between the central parity and spot rates and the degree of market segmentation between CNY and NDF markets are two crucial factors driving the time-varying CNY-NDF dependence. Furthermore, we find symmetric downside and upside risk spillovers between the two markets transmitted in both directions. The magnitude of spillovers has significantly increased since the reform. Our findings are particularly relevant for policy-making and portfolio risk management.
Journal: Applied Economics
Pages: 6850-6862
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084018
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084018
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# input file: RAEC_A_2084020_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Alison Watts
Author-X-Name-First: Alison
Author-X-Name-Last: Watts
Title: Contests with gender bias: evidence from a culinary competition
Abstract:
Multi-round contest competition determines many important social and economic outcomes such as employment, promotion, political office, as well as singing, debate, and culinary championships. The competitors in such a contest often belong to different groups based on race, ethnicity, and gender. We examine how favouritism in beliefs about ability affects both who wins the contest and the timing of being voted out. The results are tested using novel data from the culinary competition Chopped. We find that female contestants are more likely to be voted out early, but females who survive to the second half of the contest have a good chance to win. These results support an argument of gender bias by the judges.
Journal: Applied Economics
Pages: 6875-6886
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084020
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# input file: RAEC_A_2084022_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yinhe Liang
Author-X-Name-First: Yinhe
Author-X-Name-Last: Liang
Author-Name: Shuang Yu
Author-X-Name-First: Shuang
Author-X-Name-Last: Yu
Title: Are non-left-behind children really not left behind? The impact of village migration on children’s health outcomes in rural China
Abstract:
With rapid urbanization and industrialization, a large number of rural residents have migrated to urban areas for work, increasing the proportion of migration in rural villages. Previous studies have typically examined the direct effect of parental migration, while we provide the first evidence for the spillover effects of village migration on the health outcomes of non-left-behind children. The results from an instrumental variable analysis show a sizable adverse effect of exposure to village migration on the health outcomes of non-left-behind children. We examine the role of unhealthy peers, poor parental health behaviours, poor village healthcare infrastructure, and unbalanced human capital structure at the village level.
Journal: Applied Economics
Pages: 6901-6918
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084022
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084022
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# input file: RAEC_A_2084023_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yicheng Tang
Author-X-Name-First: Yicheng
Author-X-Name-Last: Tang
Author-Name: Hongyan Fang
Author-X-Name-First: Hongyan
Author-X-Name-Last: Fang
Title: Does bank shareholding affect corporate debt restructuring? Evidence from financially distressed firms in China
Abstract:
This paper investigates the impact of bank shareholding on corporate debt restructuring. Using a sample of financially distressed firms in China from 2007 to 2016, we find that distressed firms with bank shareholders are more likely to restructure their debt than firms without bank shareholders. Moreover, the alleviation of renegotiation friction in both distressed state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs) and reducing information asymmetry in non-SOEs facilitate the positive impacts of bank shareholding on debt restructuring. In addition, the impact is more evident in distressed non-SOEs characterized by higher profitability prior to restructuring. Further, distressed non-SOEs with bank shareholders are more likely to recover from distress than their peers, while the results are opposite for distressed SOEs. We argue that while bank shareholding facilitates restructuring in distressed non-SOEs, it aggravates the soft budget constraint in troubled SOEs. Our results are robust after accounting for the selection bias of bank shareholding.
Journal: Applied Economics
Pages: 6919-6937
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084023
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# input file: RAEC_A_2084021_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Changyu Hu
Author-X-Name-First: Changyu
Author-X-Name-Last: Hu
Author-Name: Yuetong Li
Author-X-Name-First: Yuetong
Author-X-Name-Last: Li
Author-Name: Xiaojia Zheng
Author-X-Name-First: Xiaojia
Author-X-Name-Last: Zheng
Title: Data assets, information uses, and operational efficiency
Abstract:
This paper studies the impact of data assets on firms’ operational efficiency, aiming to show how data assets work in business operations and highlight their key value. Given the rich content, data assets can increase operational efficiency as it embeds firms with valuable information used to optimize resource deployment in production and improve customer relationship management. Using a sample of A-share listed firms in China from 2003 to 2019, we empirically show a consistent and significantly positive relationship between a text-based measure of data assets and operational efficiency. Moreover, the positive effect of data assets on operational efficiency is more pronounced in state-owned enterprises (SOEs), diversified firms with redundant internal information, and firms in a more complex external information environment (i.e. more volatile earnings of the industry or a larger dispersion of analysts’ forecasts). As further evidenced by higher turnover ratios of inventory and lower turnover ratios of accounts receivables in firms with data assets, we verify that data assets lead to efficient production management and flexible customer relationship management. Overall, these results suggest that data assets are valuable in the efficiency improvement of firms by facilitating information uses.
Journal: Applied Economics
Pages: 6887-6900
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084021
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084021
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# input file: RAEC_A_2084019_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yiwen Shangguan
Author-X-Name-First: Yiwen
Author-X-Name-Last: Shangguan
Author-Name: Wenshuo Guo
Author-X-Name-First: Wenshuo
Author-X-Name-Last: Guo
Title: Is FDI a high-quality investment? evidence from the changes in the Chinese FDI after HSR opening
Abstract:
Improving the quality of foreign direct investment (FDI) is of great importance for the Chinese economy, which has transited from high-speed growth to high-quality development. Under the background of the rapid construction of high-speed rail (HSR), this paper uses panel data from 288 prefecture-level cities in China from 2007 to 2017 and implements the time-varying difference-in-differences (DID) model to investigate the effect of the HSR opening on FDI. This study also infers the quality of FDI before HSR opening and tests whether HSR opening could improve the quality of FDI. The empirical results show that in the short period after the HSR opening, the crowding out low-quality investment caused by the opening of HSR is greater than the effect of attracting high-quality investment. Therefore, FDI decreases after the opening of HSR, indicating the FDI before HSR opening is a low-quality investment. Moreover, the opening of HSR could gradually improve the quality of FDI over time, promoting FDI to transition to a neutral investment, then to a high-quality investment. Our research suggests that the Chinese government should choose FDI with adequate evaluation, introducing the high-quality FDI to generate technology spillovers and promote the industrial upgrades.
Journal: Applied Economics
Pages: 6863-6874
Issue: 60
Volume: 54
Year: 2022
Month: 12
X-DOI: 10.1080/00036846.2022.2084019
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# input file: RAEC_A_2061903_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Athina Zervoyianni
Author-X-Name-First: Athina
Author-X-Name-Last: Zervoyianni
Author-Name: Sophia Dimelis
Author-X-Name-First: Sophia
Author-X-Name-Last: Dimelis
Author-Name: Alexandra Livada
Author-X-Name-First: Alexandra
Author-X-Name-Last: Livada
Title: Economic Sentiment and the Covid-19 Crisis: Evidence from European Countries
Abstract:
This paper examines empirically the impact of Covid-19 pandemic on economic sentiment in Europe. We focus on the EU-27 countries plus the UK during the period September 2019 to November 2020, before the initiation of Covid-19 vaccination, using data from Eurostat’s Business and Consumers Surveys. Panel data estimates indicate that the pandemic has generated strongly declining sentiments among economic agents in Europe through the slowdown of the economy due to the imposed restrictions on movement and other controls. The risk of infection-induced mortality has played a separate role in generating pessimism directly from human psychology. The emergency social protection measures launched by governments have, on average, been effective in reducing market pessimism. However, we provide evidence suggesting that policymakers should focus more on targeted support to poor households and other disadvantaged groups of the population. Overall, our results suggest that certain structural features of economies, including poverty exposure, a large informal sector, and a high percentage of vulnerable employment as well as limited financial and informational openness, are factors that may intensify the severity of the adverse economic consequences of a pandemic.
Journal: Applied Economics
Pages: 113-130
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2061903
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2061903
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# input file: RAEC_A_1927964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ni Zhuo
Author-X-Name-First: Ni
Author-X-Name-Last: Zhuo
Author-Name: Chunhui Ye
Author-X-Name-First: Chunhui
Author-X-Name-Last: Ye
Author-Name: Chen Ji
Author-X-Name-First: Chen
Author-X-Name-Last: Ji
Title: Human capital matters:intergenerational occupational mobility in rural China
Abstract:
Intergenerational occupational mobility often indicates inequality in society, and occupational mobility in rural China reflects the labour migration from rural to urban areas. Human capital is critical to occupational mobility; however, studies on occupational mobility in rural areas spanning over three generations, from the human capital perspective, are scant. This study analyzes data of three generations from Chinese Rural Development Surveys to examine intergenerational occupational mobility of rural Chinese households. Specifically, considering that the term ‘mobility’ refers to differences in occupation of parents and their offspring, this study examines education and skills training differences between the two as independent variables to ascertain their influence on occupational mobility, rather than simply examining parents’ education and skills training. A series of descriptive analysis and regressions confirm that education and workforce skills training are the key determinants that enable farmers to move upward in occupational status. These variables also influence the direction and distance of occupational mobility for rural households. This indicates that the government should invest more in human capital, especially by supporting increased access to both education and training.
Journal: Applied Economics
Pages: 1-19
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2021.1927964
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1927964
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# input file: RAEC_A_2052011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ho Seoung Na
Author-X-Name-First: Ho Seoung
Author-X-Name-Last: Na
Title: Analysis of mutual relationships between investments made by content providers and network operators using the VAR model
Abstract:
Various services and content available on the Internet have changed people’s daily lives and also changed the physical structure of the Internet network. Prominent content providers with high levels of Internet traffic by multimedia content have a significant influence on the structural changes of the Internet network. This study empirically analyzes the mutual relationships between the content providers’ infrastructure investments and the network operators’ network investments, using time-series data. It concludes that for the continuous development of Internet-related industries, it is necessary for the content providers to pay network interconnection fees to the network operators with paid peering contracts.
Journal: Applied Economics
Pages: 58-71
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2052011
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2052011
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# input file: RAEC_A_1934392_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Haifa Boussada
Author-X-Name-First: Haifa
Author-X-Name-Last: Boussada
Author-Name: Jean-Luc Prigent
Author-X-Name-First: Jean-Luc
Author-X-Name-Last: Prigent
Author-Name: Ibrahima Soumare
Author-X-Name-First: Ibrahima
Author-X-Name-Last: Soumare
Title: On the sovereign debt crisis: sovereign credit default swaps and their interaction with stock market indices
Abstract:
This paper examines the European credit default swap spreads and their relationship to other financial assets such as stock indices. This study aims at better investigating the European sovereign debt crisis from the beginning of 2010 to the end of 2013. For this purpose, using daily data covering the period from January 2004 to December 2018, first we examine the impact of the sovereign crisis on spread sovereign credit default swaps, using both an asymmetric DCC-MGARCH model and a Copula-based Multivariate GARCH model (C-MGARCH). Then, we estimate the relations between spread sovereign credit default swaps and equity indices. We analyse in particular the lead–lag relationship between these two financial indicators by using a vector autoregressive model. We note a negative correlation between the spreads and stock market indices. There is a significant unidirectional causality from CDS spread changes to stock market indices returns. Our findings show that the CDS spreads have played a leading role in most European countries during this crisis. These results are potentially important because the current pandemic is threatening the economies of European countries, especially Greece.
Journal: Applied Economics
Pages: 20-42
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2021.1934392
File-URL: http://hdl.handle.net/10.1080/00036846.2021.1934392
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# input file: RAEC_A_2055741_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Author-Name: Zhanpeng Bi
Author-X-Name-First: Zhanpeng
Author-X-Name-Last: Bi
Author-Name: May Hu
Author-X-Name-First: May
Author-X-Name-Last: Hu
Author-Name: Qingzhu Meng
Author-X-Name-First: Qingzhu
Author-X-Name-Last: Meng
Title: Shadow banking and commercial bank: evidence from China
Abstract:
In China, commercial banks participate in shadow banking activities through interbank or channel businesses, which should be called bank’s shadow banking activities. Based on the co-opetition game model, we first analyse the fund flow mechanism between bank’s shadow banking and traditional credit business, which confirms that the greater the proportion of bank’s shadow banking investment, the higher the bank profit. By sampling 147 commercial banks in China during 2003 to 2019, we empirically study the impact of bank’s shadow banking on the individual risk of commercial bank by OLS regression and on the systemic risk of banks through the randomized effect model from the micro-level. The results confirm that Chinese bank’s shadow banking will increase the individual operating risk of commercial bank and its rapid development will increase the probability of banking system risk. Meanwhile, we find that global financial crisis has no significant effect on the risk of individual banks or banking systems, but the regulatory overhaul of bank’s shadow banking activities can significantly inhibit the individual bank’s operational risk, especially for listed banks.
Journal: Applied Economics
Pages: 72-89
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2055741
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2055741
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# input file: RAEC_A_2023090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xinsheng Cui
Author-X-Name-First: Xinsheng
Author-X-Name-Last: Cui
Author-Name: Longfei Guo
Author-X-Name-First: Longfei
Author-X-Name-Last: Guo
Author-Name: Yuanyue Bian
Author-X-Name-First: Yuanyue
Author-X-Name-Last: Bian
Title: Improving business environments: a new approach to promote trade openness?
Abstract:
Improving business environments as a kind of internally oriented institutional reform has been approved to attract Foreign Direct Investment and promote foreign trade. However, its effect on trade openness has been ignored. By introducing a dummy variable of the border into the gravity equation model, this study redefines and measures the trade openness, representing the ease of goods and service import of an economy. Then we estimate the impact of business environments on trade openness with the ease of doing business score of the World Bank’s Doing Business project. The results reveal that, although some countries tend to implement trade protectionism in the time of economic crises and the trade openness suffers temporary setbacks, the overall development trend of the world economy increasingly opens up. Besides, the level of trade openness varies significantly among economies where developed countries demonstrate more openness than developing ones. More importantly, we find the positive effect of business environments on trade openness and the countries with lower development level benefited more from the improving business environments. It highlights the importance of improving business environments in promoting trade openness in the developing world.
Journal: Applied Economics
Pages: 43-57
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2021.2023090
File-URL: http://hdl.handle.net/10.1080/00036846.2021.2023090
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# input file: RAEC_A_2056571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hao Wu
Author-X-Name-First: Hao
Author-X-Name-Last: Wu
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Yiwen Chen
Author-X-Name-First: Yiwen
Author-X-Name-Last: Chen
Author-Name: Fei Huang
Author-X-Name-First: Fei
Author-X-Name-Last: Huang
Title: Time-Frequency connectedness of policy uncertainty, geopolitical risk and Chinese commodity markets: evidence from rolling window analysis
Abstract:
This article investigates the time-frequency connectedness of categorical policy uncertainty, geopolitical risk and Chinese commodity markets by applying the vector autoregression method for the period from August 2004 to March 2021. Specifically, our research employs rolling window analysis of wavelet decomposition series to uncover the dynamic properties of connectedness with a time-frequency framework. The results indicate that heterogeneity exists across time scales for policy-specific uncertainty, geopolitical risk and commodities throughout the study period. In particular, the directional connectedness shows that the commodity markets are most closely related to monetary policy uncertainty, followed by exchange rate policy uncertainty, fiscal policy uncertainty and trade policy uncertainty, and finally geopolitical risk. In addition, connectedness exhibits an obvious changing trend during the crisis period, and the spillover effects of policy uncertainty and geopolitical risk increase dramatically. Finally, the long-term connectedness between policy uncertainty, geopolitical risk and commodities are stronger than that in the short-term periods. Overall, our findings provide valuable implications that policymakers and investors should pay attention to dynamic and time-frequency features of connectedness when making decisions.
Journal: Applied Economics
Pages: 90-112
Issue: 1
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2056571
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2056571
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# input file: RAEC_A_2074358_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bo Cheng
Author-X-Name-First: Bo
Author-X-Name-Last: Cheng
Author-Name: Xiaochen Zhang
Author-X-Name-First: Xiaochen
Author-X-Name-Last: Zhang
Author-Name: Baoyin Qiu
Author-X-Name-First: Baoyin
Author-X-Name-Last: Qiu
Author-Name: Jingjing Zuo
Author-X-Name-First: Jingjing
Author-X-Name-Last: Zuo
Title: Does the ”Belt and Road” initiative impact a firm’s green investments?
Abstract:
Based on the quasi-natural experiment of the ‘Belt and Road’ initiative by the State Council in March 2015 in China, we use a difference-in-differences (DID) research design to examine the impact of the ‘Belt and Road’ initiative on firms’ green investments. Our DID results show that compared with firms in the control group, supported-firms significantly decreased their green investments after the ‘Belt and Road’ initiative. Specifically, firm-level green investments of supported-firms decreased by approximately 44% after the ‘Belt and Road’ initiative than before the ‘Belt and Road’ initiative relative to an average firm. After the use of placebo test, PSM test, and replacement of variables and samples test, the basic conclusion remains unchanged. Further analysis shows that the negative effect of the ‘Belt and Road’ initiative on green investments is more salient for key provinces, heavily polluting industries, weak industry competition, low management power, high media attention, and high analyst attention. Collectively, our findings systematically identify and examine the influence of the ‘Belt and Road’ initiative on green investments.
Journal: Applied Economics
Pages: 155-169
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2074358
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2074358
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# input file: RAEC_A_2071830_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Luis Diaz-Serrano
Author-X-Name-First: Luis
Author-X-Name-Last: Diaz-Serrano
Author-Name: Frank G. Sackey
Author-X-Name-First: Frank G.
Author-X-Name-Last: Sackey
Title: Is microfinance really helping the most vulnerable? An empirical test of the effectiveness of the Ghana’s Microfinance Policy Reform
Abstract:
The study aims to test the effectiveness of the Ghana Microfinance Policy of 2006 set up to support women and youth through access to credit. Our results show that, after controlling for a large number of variables, female and young entrepreneurs are less likely to be rationed in the access to microcredit and that this is largely determined by the differential treatment that they receive from microfinance institutions. Our analysis using regression decomposition techniques indicates that positive discrimination in favour of women and youth exists. Surprisingly, our results show that government microfinance policy accounts for the most severe rationing behaviour towards the targeted groups by the law.
Journal: Applied Economics
Pages: 131-145
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2071830
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2071830
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# input file: RAEC_A_2074357_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sylvain Bourjade
Author-X-Name-First: Sylvain
Author-X-Name-Last: Bourjade
Author-Name: Annalisa Fraccaro
Author-X-Name-First: Annalisa
Author-X-Name-Last: Fraccaro
Author-Name: Debrah Meloso
Author-X-Name-First: Debrah
Author-X-Name-Last: Meloso
Author-Name: Roman Skripnik
Author-X-Name-First: Roman
Author-X-Name-Last: Skripnik
Author-Name: David Stolin
Author-X-Name-First: David
Author-X-Name-Last: Stolin
Title: Non-proportional thinking in IPOs
Abstract:
The fact that initial-to-final IPO price revision ratios are strong predictors of IPO underpricing is well known to researchers. Our study documents that the dollar amount of the price revision matters above and beyond the revision ratio, and dramatically so. Immediately following the IPO, market participants appear to see a positive signal in greater dollar amount revisions, even if holding price revision ratios equal. This extends Shue and Townsend (Journal of Finance, 2021) finding of market participants’ ‘non-proportional thinking’ to the IPO setting. It also implies that the dollar amount of price revision deserves attention from future IPO researchers, particularly when studying the determinants of IPO underpricing.
Journal: Applied Economics
Pages: 146-154
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2074357
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2074357
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# input file: RAEC_A_2083567_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jun Wang
Author-X-Name-First: Jun
Author-X-Name-Last: Wang
Author-Name: Chongfeng Wu
Author-X-Name-First: Chongfeng
Author-X-Name-Last: Wu
Title: Are analysts effective speaking tubes? Evidence from site visits
Abstract:
This study examines the association between analysts’ site visits and stock price crash risk using a dataset of Chinese firms listed on the Shenzhen Stock Exchange (SZSE) from 2012 to 2019. We find that analysts’ site visit frequency is positively associated with future stock price crash risk, and the positive association is primarily driven by the firms that analysts keep silent on. Furthermore, we confirm that analysts’ silence is associated with negative news about firms’ fundamentals. We also show that the effect of analysts’ silence on crash risk is more pronounced when analysts face conflicts of interest, when firms have poorer information transparency, and when firms have fewer alternative information channels. Overall, our findings shed light on the dark side of analysts’ site visits.
Journal: Applied Economics
Pages: 170-187
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2083567
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2083567
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# input file: RAEC_A_2084026_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shaohui Gao
Author-X-Name-First: Shaohui
Author-X-Name-Last: Gao
Author-Name: Yiming He
Author-X-Name-First: Yiming
Author-X-Name-Last: He
Title: The effect of land titling policy on farm size: evidence from China
Abstract:
This study utilizes regression discontinuity design to examine the impact of the land titling program on farm size in China between 2009 and 2016. Results indicate that the land titling policy effect upsizes farm by around 50% and increases the transaction of management rights in farmland by around 4% points in China for 2015 national survey. Using data from the 20th century, it shows private ownership historically had lowered farm size. Today, given ownership is stable, farmland management rights provide incentive structure for farmers to participate into farmland lease market and expand their farm size.
Journal: Applied Economics
Pages: 188-200
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2084026
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2084026
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# input file: RAEC_A_2085870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xudong Tang
Author-X-Name-First: Xudong
Author-X-Name-Last: Tang
Author-Name: Haixia Chang
Author-X-Name-First: Haixia
Author-X-Name-Last: Chang
Author-Name: Wanli Li
Author-X-Name-First: Wanli
Author-X-Name-Last: Li
Title: Cross-ownership and tunnelling: evidence from China
Abstract:
The phenomenon that firms form association through the same shareholders widely exists in the global capital market. Using the data of China’s listed firms from 2008 to 2018, we examine whether cross-ownership can restrain the tunnelling behaviour of controlling shareholder. We find that cross-ownership can significantly reduce the tunnelling behaviour of controlling shareholders. It survives a series of endogeneity tests and robustness tests. Further analysis shows that the information advantage and governance experience are the two potential mechanisms through which cross-ownership affects tunnelling. Meanwhile, cross-ownership plays the positive role in restraining tunnelling mainly by increasing shareholding ratio and appointing directors. Moreover, this effect is more pronounced in firms with lower equity concentration, less analyst coverage and worse reputation of auditors. This paper not only highlights the critical role played by cross-ownership in shaping micro-economic behaviours by providing novel evidence from emerging markets, but also has some crucial implications for capital market supervision and industry antitrust policy-making.
Journal: Applied Economics
Pages: 223-236
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2085870
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2085870
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# input file: RAEC_A_2085869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: OlaOluwa Simon Yaya
Author-X-Name-First: OlaOluwa Simon
Author-X-Name-Last: Yaya
Author-Name: Kingsley Opoku Appiah
Author-X-Name-First: Kingsley Opoku
Author-X-Name-Last: Appiah
Title: Tail risk dependence, co-movement and predictability between green bond and green stocks
Abstract:
This paper examines the coherence of extreme returns between green bonds and a unique set of green stocks. We use the novel quantile cross-spectral coherence methodology of quantile spectral coherency model, cross-quantilogram correlation approach, windowed time-lagged cross-correlation, and windowed scalogram difference models as estimation techniques. The study period spans from 28 November 2008 to 23 September 2020. Our measure of green stocks comprises the constituents of the MSCI Global Environment Price Index: Alternative Energy, Green Building, Pollution Prevention or Clean Technology while our green bond market is proxied by S&P Green Bond Index. We find the dependency between Green Bonds and green stocks to be weak, and this is high during market downturn periods in the short- to medium-term dynamics. This suggests that Green Bonds do act as a hedge, diversifier, or safe-haven instrument for environment portfolio in the short-term, medium-term and long-term dynamics during bearish market conditions. We conclude that green bonds and green stocks are two distinct asset classes with a distinct risk-return profile despite their common climate-friendly nature.
Journal: Applied Economics
Pages: 201-222
Issue: 2
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2085869
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2085869
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# input file: RAEC_A_2087858_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Suk-Joon Byun
Author-X-Name-First: Suk-Joon
Author-X-Name-Last: Byun
Author-Name: Byounghyun Jeon
Author-X-Name-First: Byounghyun
Author-X-Name-Last: Jeon
Author-Name: Donghoon Kim
Author-X-Name-First: Donghoon
Author-X-Name-Last: Kim
Title: Investor sentiment and the MAX effect: evidence from Korea
Abstract:
Stocks with extreme positive returns underperform the market since they are overpriced due to investors’ preference towards lottery-like stocks, stocks with a low probability of an extremely high payoff. Using data from the South Korean stock market, we show that the underperformance of such stocks is pronounced following periods of low investor sentiment. This suggests that low investor sentiment coincides with economic downturn when stocks with extreme positive returns experience increased salience and attention. We provide supporting evidence that stocks with extreme positive returns experience a substantial increase in trading volume and buying pressure from individual investors when investor sentiment is low.
Journal: Applied Economics
Pages: 319-331
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2087858
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2087858
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# input file: RAEC_A_2086683_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Isaac Koomson
Author-X-Name-First: Isaac
Author-X-Name-Last: Koomson
Author-Name: Clifford Afoakwah
Author-X-Name-First: Clifford
Author-X-Name-Last: Afoakwah
Title: Can financial inclusion improve children’s learning outcomes and late school enrolment in a developing country?
Abstract:
This study uses comprehensive household data from Ghana to examine the link between financial inclusion and children’s learning outcomes and late school enrolment. After resolving endogeneity, we find that a standard deviation increase in financial inclusion is associated with 0.7882 to 0.9504 standard deviations increase in children’s learning outcomes. It also reduces late school enrolment by 0.9493 standard deviation. Financial inclusion enhances learning and schooling outcomes more for girls and urban children. These findings are robust to different indicators of learning outcomes and alternative approaches to addressing endogeneity. Parents’ ability to spend on extra classes and on books and other school-related supplies serve as possible channels through which financial inclusion affects children’s educational outcomes.
Journal: Applied Economics
Pages: 237-254
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086683
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086683
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# input file: RAEC_A_2086963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jeremy Philip Thornton
Author-X-Name-First: Jeremy Philip
Author-X-Name-Last: Thornton
Title: Fiscal shocks and non-profit employment
Abstract:
This paper uses novel data from the Quarterly Census of Employment and Wages (QCEW) to identify the impact of countercyclical fiscal policy on non-profit wages, employment, and entry in the non-profit sector. The paper extends an existing empirical literature that uses the ‘Great Recession’ (2007–2009) as a shock to identify the responsiveness of non-profit labour markets to aggressive fiscal policy. The paper adopts an identification strategy which exploits variation in the Federal Medical Assistance Percentage (FMAP) reimbursement rates across states in the context of the American Recovery and Reinvestment Act (ARRA) of 2009. An instrument is applied in the place of ARRA expenditures to avoid estimation bias. I find that non-profit employment and wages are less responsive to fiscal stimulus, relative to previous point estimates for all United States firms. Point estimates indicate estimated cost of $104,000 per non-profit job saved. However, there is wide variation across non-profit sub-sectors.
Journal: Applied Economics
Pages: 293-304
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086963
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086963
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# input file: RAEC_A_2086685_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sonia Baños-Caballero
Author-X-Name-First: Sonia
Author-X-Name-Last: Baños-Caballero
Author-Name: Pedro J. García-Teruel
Author-X-Name-First: Pedro J.
Author-X-Name-Last: García-Teruel
Title: Investment in trade credit in small business start-ups: evidence from Spain during a financial crisis
Abstract:
This study analyses start-up firms’ investment in trade credit during the period 2011–2014. We find that new or recently created firms had greater investments in trade credit than established firms. Moreover, the results indicate that start-up firms’ investment in trade credit did not depend on their bargaining power or access to external finance. These findings suggest that the reason start-ups invested more in accounts receivable than established firms could be due to late payments or their granting credit to low-quality customers who cannot obtain credit from established firms.
Journal: Applied Economics
Pages: 273-282
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086685
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086685
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# input file: RAEC_A_2086684_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yunsun Kim
Author-X-Name-First: Yunsun
Author-X-Name-Last: Kim
Author-Name: Sun-Young Hwang
Author-X-Name-First: Sun-Young
Author-X-Name-Last: Hwang
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Sahm Kim
Author-X-Name-First: Sahm
Author-X-Name-Last: Kim
Title: Linear time-varying regression with copula–DCC–asymmetric–GARCH models for volatility: the co-movement between industrial electricity demand and financial factors
Abstract:
This paper examines the dependence structure of industrial electricity demand and financial indicators (the Korea Composite Stock Price Index [KOSPI], Korean Securities Dealers Automated Quotations [KOSDAQ], exchange rate, government bonds and exports) using the copula dynamic conditional correlation with symmetric and asymmetric generalized autoregressive conditional heteroscedasticity (GARCH) models to forecast volatility. We investigated symmetric and asymmetric GARCH types, such as the standard, exponential, Glosten–Jagannathan–Runkle and asymmetric power models to fit the marginal distribution. The two types of elliptical copula, Gaussian and Student’s t-distributions, were also considered to investigate the tail dependence between financial and electricity time series. We analysed the monthly log returns for January 2002 to April 2020. The empirical results reveal that the best-fit models for the Akaike information criteria are the asymmetric GARCH models, specifically the exponential-GARCH (E-GARCH). Moreover, the asymmetric GARCH model is superior to the symmetric GARCH in terms of forecast volatility. Extreme tail dependence exists for the KOSDAQ and exports indicators with the electricity demand. The KOSPI, Korea’s primary stock market, is the best-fit financial variable and presents the highest forecasting accuracy.
Journal: Applied Economics
Pages: 255-272
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086684
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086684
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# input file: RAEC_A_2086964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sefa Awaworyi Churchill
Author-X-Name-First: Sefa Awaworyi
Author-X-Name-Last: Churchill
Author-Name: Yifei Cai
Author-X-Name-First: Yifei
Author-X-Name-Last: Cai
Author-Name: Michael Odei Erdiaw-Kwasie
Author-X-Name-First: Michael Odei
Author-X-Name-Last: Erdiaw-Kwasie
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Title: Financial development and tourism: a century of evidence from Germany
Abstract:
This article presents findings from the first study to examine the direct effects of financial development on tourism. Using a unique historical dataset for Germany covering 1870 to 2016, we apply an autoregressive distributional lag (ARDL) model with structural breaks. To identify the lead–lag relationship between financial development and tourism, we adopt the wavelet coherence method and the most recently developed Shi, Hurn, and Phillips (2020) time-varying causality test. The ARDL results suggest that, on average, financial development is associated with an increase in tourist arrivals. The wavelet coherence results unveil a significant positive correlation between financial development and tourism in both short- and medium-terms, and financial development leads to tourism growth in Germany. Moreover, the causality results indicate that the positive effect of financial development on tourism is most evident from 2009 onward. Our study provides important implications for policymakers.
Journal: Applied Economics
Pages: 305-318
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086964
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086964
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# input file: RAEC_A_2086686_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Title: US policy responses to the COVID-19 pandemic and sectoral stock indices: A fractional integration approach
Abstract:
This paper uses fractional integration to assess the impact of US policy responses to the COVID-19 pandemic on 10 US sectoral stock indices from 1 January 2020 to 11 June 2021. The results provide evidence of mean reversion in most cases and suggest that the Effective Federal Funds Rate and monetary and fiscal announcements are the most effective policy tools.
Journal: Applied Economics
Pages: 283-292
Issue: 3
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2086686
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2086686
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# input file: RAEC_A_2096861_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mounir Dahmani
Author-X-Name-First: Mounir
Author-X-Name-Last: Dahmani
Author-Name: Mohamed Mabrouki
Author-X-Name-First: Mohamed
Author-X-Name-Last: Mabrouki
Author-Name: Adel Ben Youssef
Author-X-Name-First: Adel
Author-X-Name-Last: Ben Youssef
Title: The ICT, financial development, energy consumption and economic growth nexus in MENA countries: dynamic panel CS-ARDL evidence
Abstract:
This paper analyses the nexus between renewable and non-renewable energy consumption, financial development, Information and Communication Technology (ICT) diffusion and economic growth, in MENA countries, over the period 1980–2018. We use the novel Cross-Section augmented Autoregressive Distributed Lag (CS-ARDL) estimation technique which accounts for cross-sectional dependence and cross-country heterogeneity issues. We find a positive impact of renewable and non-renewable energy on economic growth, but a negative effect of financial development on economic growth. We also find a positive and statistically significant influence of ICT on Gross Domestic Product (GDP). Renewable energy and ICT diffusion can be considered important determinants of improved economic activity, job creation and better environmental quality. Pairwise Dumitrescu-Hurlin panel causality tests were used to examine the causal relations among the variables. The findings of this study have considerable policy implications for the selected countries.
Journal: Applied Economics
Pages: 1114-1128
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096861
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096861
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# input file: RAEC_A_2095348_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kanat Abdulla
Author-X-Name-First: Kanat
Author-X-Name-Last: Abdulla
Title: New evidence on the role of human capital in economic development
Abstract:
This study provides new evidence on the role of human capital in economic development by investigating the earnings and occupational attainment of immigrants in Venezuela. The results show that immigrants are representative of the source country’s population and are more likely to use their skills in the labour market of the host country. This allows us to measure the human capital endowments of the source countries more precisely. Using the standard development accounting framework to explain the variation in output, the study finds that physical capital and human capital account for 73–79% of income differences across countries.
Journal: Applied Economics
Pages: 1062-1073
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095348
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095348
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# input file: RAEC_A_2096860_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Weidong Xu
Author-X-Name-First: Weidong
Author-X-Name-Last: Xu
Author-Name: Yijie Chen
Author-X-Name-First: Yijie
Author-X-Name-Last: Chen
Author-Name: Xin Gao
Author-X-Name-First: Xin
Author-X-Name-Last: Gao
Author-Name: Yi Wang
Author-X-Name-First: Yi
Author-X-Name-Last: Wang
Title: Business strategy and stock price crash risk: international evidence
Abstract:
Employing a large international sample spanning from 1985 to 2017 (i.e. 65,774 firm-year observations), this paper examines the relationship between business strategy and stock price crash risk. Empirical results suggest that prospective business strategy is significantly and positively related to stock price crash risk, in line with the ‘bad news hoarding hypothesis’. Further research shows that in companies with higher information asymmetry or more overconfident CEOs, prospective business strategy has a larger positive impact on stock price crash risk. In addition, the above positive effects are more significant in countries with higher individualism, lower power distance, and weaker uncertainty avoidance. Our results remain after a battery of robustness checks.
Journal: Applied Economics
Pages: 1098-1113
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096860
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096860
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# input file: RAEC_A_2096862_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xue Qu
Author-X-Name-First: Xue
Author-X-Name-Last: Qu
Author-Name: Daizo Kojima
Author-X-Name-First: Daizo
Author-X-Name-Last: Kojima
Author-Name: Laping Wu
Author-X-Name-First: Laping
Author-X-Name-Last: Wu
Author-Name: Mitsuyoshi Ando
Author-X-Name-First: Mitsuyoshi
Author-X-Name-Last: Ando
Title: Rice harvest losses caused by agency slack in China: a mediation analysis
Abstract:
This study built mediation analysis models to test the hypothesis that a moral hazard-measured as whether harvest operators’ work attitudes are serious-mediates the effects of mechanical harvest outsourcing on rice harvest losses based on a 1106-household survey in China. The major findings are as follows. First, the average rice harvest loss rate in 2016 in China was approximately 3.65%, equalling eight million tons of rice or one million hectares of farmland. Second, after addressing the potential endogeneity, we preliminarily found the mediation effect using the three-step method. The adjusted product of coefficients method from the Sobel test, distribution of the product test, and Markov Chain Monte Carlo test all indicated the significance of the mediation effect arising from work attitudes. Third, we observed the mediation effect through moral hazard for large-scale farmers, but not when farmers used combine harvesters. These results supported the presence of a moral hazard in mechanical harvest outsourcing and showed that combine harvesting could facilitate harvest loss reduction. Policymakers should consider regulating the principal – agent relationship in harvest outsourcing and encourage land transfers to form large-scale farms to promote combine harvesting. These are critical in achieving the sustainable development goal of halving food loss and waste worldwide.
Journal: Applied Economics
Pages: 1129-1141
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096862
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096862
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# input file: RAEC_A_2096864_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaotian Sun
Author-X-Name-First: Xiaotian
Author-X-Name-Last: Sun
Author-Name: Wei Fang
Author-X-Name-First: Wei
Author-X-Name-Last: Fang
Author-Name: Xiangyun Gao
Author-X-Name-First: Xiangyun
Author-X-Name-Last: Gao
Author-Name: Sufang An
Author-X-Name-First: Sufang
Author-X-Name-Last: An
Author-Name: Tao Wu
Author-X-Name-First: Tao
Author-X-Name-Last: Wu
Author-Name: Shuai Ren
Author-X-Name-First: Shuai
Author-X-Name-Last: Ren
Title: Nonlinear dynamical analysis of metal futures price fluctuations: a recurrence quantification analysis approach
Abstract:
Metal futures markets are complex systems which generally show nonstationary and complex behaviours. However, the characteristics behind these complex processes can be uncovered by exploring their prices fluctuations. This paper identified the deterministic states and measured the complexity of these six metal futures prices based on recurrence plots. The results show that the prices fluctuations characteristics of the five metals, except for Copper, were significantly different around April 2008. The average time for prices to maintain similar fluctuations for each metal is roughly within 15 days. We further used entropy indicator to quantify the complexity of metal prices systems and the sliding window method to identify time-varying features of complexity. After 2013, all these metal futures systems show higher complexity behaviours than before. Moreover, when the entropy indicator is at a high value, these metal prices are likely to change significantly.
Journal: Applied Economics
Pages: 1142-1155
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096864
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096864
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Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1142-1155
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# input file: RAEC_A_2096205_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kuangchung Hsu
Author-X-Name-First: Kuangchung
Author-X-Name-Last: Hsu
Author-Name: Zhen Zhu
Author-X-Name-First: Zhen
Author-X-Name-Last: Zhu
Title: Tropical storms and the U.S. natural gas demand: how have hurricanes impacted natural gas consumption?
Abstract:
Studies of the impact of tropical storms on various economic activities including energy production are on the rise given higher frequencies of tropical storms and the increasingly large and negative impact in more recent years. However, we found no academic study of tropical storms on natural gas consumption. This paper provides such a study. In carrying out the empirical investigation, we created a dataset that includes the detailed path of the storms and the cities and states impacted. We estimated the storms’ impact on temperature and also the temperature’s impact on consumption to gauge the specific impact of tropical storms by state and by end use. We found significant storm impact on natural gas consumption, especially consumption of gas to produce power. However, the impact of a typical storm on gas consumption was relatively small on a monthly basis even though it could have a large impact on storm days. This study provides an important empirical result to better understand natural gas price dynamics in the presence of a tropical storm.
Journal: Applied Economics
Pages: 1074-1097
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2096205
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096205
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Handle: RePEc:taf:applec:v:55:y:2023:i:10:p:1074-1097
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# input file: RAEC_A_2095347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Minghui Yang
Author-X-Name-First: Minghui
Author-X-Name-Last: Yang
Author-Name: Shaoming Chen
Author-X-Name-First: Shaoming
Author-X-Name-Last: Chen
Author-Name: Jiawen Wang
Author-X-Name-First: Jiawen
Author-X-Name-Last: Wang
Author-Name: Yan Wang
Author-X-Name-First: Yan
Author-X-Name-Last: Wang
Title: Corporate social responsibility and stock price crash risk: does analyst coverage matter?
Abstract:
The debate about whether corporate social responsibility (CSR) and analyst coverage facilitate financial transparency is still open among academics and practitioners to date. Drawing from the information asymmetry view, this paper aims to investigate the impact of CSR on stock price crash risk, and to examine the moderating effect of analyst coverage on the ‘CSR – crash risk’ nexus. Using a sample of 8037 firm-year observations from Chinese-listed firms between 2010 and 2018, we find that CSR is negatively associated with crash risk. Analyst coverage cannot catalyse the positive role of CSR in reducing financial opacity, and thereby weakens the negative association between CSR and stock price crash risk. This implies that analysts fail to sufficiently disseminate firm-specific information, which in turn aggravates the information gap between insiders and outside investors. Our results remain robust after considering potential endogeneity and alternative CSR measures. The current study advances the understanding of ‘CSR – crash risk’ relationship with the moderating effect of analyst coverage. We also provide important references for investors and policymakers to better understand abnormal stock price fluctuations.
Journal: Applied Economics
Pages: 1045-1061
Issue: 10
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095347
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095347
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# input file: RAEC_A_2096868_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lu Sui
Author-X-Name-First: Lu
Author-X-Name-Last: Sui
Author-Name: Andre V. Mollick
Author-X-Name-First: Andre V.
Author-X-Name-Last: Mollick
Author-Name: Sibin Wu
Author-X-Name-First: Sibin
Author-X-Name-Last: Wu
Title: Threshold effects of financial development on foreign listing: the roles of venture capital in developed and emerging countries
Abstract:
This paper examines financing abroad from the perspective of international financial development. We find that foreign listing activities are significantly associated with financial development indices, such as stock trading, domestic credit, soundness of banks, venture capital availability and financing by local equity markets. The spillover effect is more pronounced in emerging countries. A threshold model with a macro dynamic panel of 37 countries from 2006 to 2020 suggests that foreign listings and financial development (stock trading and venture capital availability) follow an inverted U-shaped pattern, while foreign listings and domestic credit follow a diminishing pattern. The policy and managerial implications indicate that countries face varying demands for foreign listings at different stages of financial development. When making decisions on seeking foreign capital policymakers should follow closely the changes in domestic financial development and institutions.
Journal: Applied Economics
Pages: 1201-1216
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096868
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096868
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# input file: RAEC_A_2096866_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tiantian Dai
Author-X-Name-First: Tiantian
Author-X-Name-Last: Dai
Author-Name: Shenyi Jiang
Author-X-Name-First: Shenyi
Author-X-Name-Last: Jiang
Author-Name: Tao Jin
Author-X-Name-First: Tao
Author-X-Name-Last: Jin
Author-Name: Buyuan Yang
Author-X-Name-First: Buyuan
Author-X-Name-Last: Yang
Title: Language and segregation: evidence from housing markets in the United States
Abstract:
It has been suggested that residential segregation has negative social and economic impacts. However, psychological and cultural benefits of such clustering have been established by research. We undertake a comprehensive analysis by estimating residential choices of minorities and identifying their willingness to pay for housing attributes and community characteristics. Recognizing that the language spoken at home adds to daily convenience, a sense of belonging, and a feeling of closeness, we widen the scope of the study to include four minority groups, defined by the languages spoken at home. We find that preferences for integrating into white, English-speaking societies are quite heterogeneous. The willingness to pay to live in a community with more own language speakers is inversely associated with the willingness to pay to live in a community with more English-speaking whites. Furthermore, any two minority groups share the same reciprocal attitudes towards each other. To assimilate more into the mainstream, a minority group might choose to reside in a community with fewer people who speak their language, but they would not necessarily be willing to lower the percentage of other minority groups.
Journal: Applied Economics
Pages: 1157-1183
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096866
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096866
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Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1157-1183
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# input file: RAEC_A_2096870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kuang-Liang Chang
Author-X-Name-First: Kuang-Liang
Author-X-Name-Last: Chang
Title: The tail dependence structure between return and trading volume: an investigation on the Bitcoin market
Abstract:
This research assesses the diversification patterns for tail dependence between Bitcoin return and trading volume by utilizing a dynamic mixture copula approach with spillover effect and asymmetric volatility effect. There are four main empirical findings. First, the spillover effect between return and trading volume exists. Second, the leverage effect is statistically significant for return and trading volume. Third, the linkages between return and trading volume are diversified. Both positive and negative tail dependence structures are observed, and the frequency of a positive tail dependence occurring is higher. Furthermore, the asymmetric tail dependence structure exists in positive and negative dependence situations. In the positive dependence structure, a co-movement in the increasing direction is stronger than a co-movement in the decreasing direction. In the negative dependence structure, a situation of a large return with low volume occurs more often than a situation of a small return with high volume. Fourth, the volatility of trading volume positively predicts the magnitude of positive dependence.
Journal: Applied Economics
Pages: 1234-1246
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096870
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096870
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Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1234-1246
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# input file: RAEC_A_2096869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Minjie Pan
Author-X-Name-First: Minjie
Author-X-Name-Last: Pan
Author-Name: Weiyong Zou
Author-X-Name-First: Weiyong
Author-X-Name-Last: Zou
Author-Name: Kangjuan Lv
Author-X-Name-First: Kangjuan
Author-X-Name-Last: Lv
Author-Name: Xinlei Qian
Author-X-Name-First: Xinlei
Author-X-Name-Last: Qian
Title: Can environmental protection interview policy reduce air pollution? -A spatial difference-in-differences approach
Abstract:
The low efficiency of environmental policy implementation is an important issue in China’s environmental governance. The Environmental Protection Interview (EPI) policy is an administrative means for the central environmental protection department to urge local governments to earnestly fulfill their environmental protection responsibilities. This paper takes China’s EPI policy as a quasi-natural experiment. We use panel data of 261 prefecture-level cities in China from 2009 to 2018 as research sample and use spatial difference-in-differences (SDID) model to investigate the effect and mechanism of EPI policy on air pollution. The results show that EPI policy can effectively improve air quality, EPI policy has obvious spatial spillover effects. Namely, the EPI policy can not only reduce the local air pollution, but also reduce the air pollution in neighbouring cities. The EPI policy reduces the air pollution in the neighbouring cities within a spatial attenuation boundary of 400 km.The results of mechanism test show that the EPI policy can improve air quality by promoting industrial structure upgrading and technical advancement. Moreover, the pollution reduction effect of EPI is more significant in resource-based cities. The research results of this paper provide important reference for China and other developing countries to improve air quality.
Journal: Applied Economics
Pages: 1217-1233
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096869
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096869
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# input file: RAEC_A_2096867_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yosuke Tomita
Author-X-Name-First: Yosuke
Author-X-Name-Last: Tomita
Title: Effects of the rule of law and central bank independence on economic inequality and surplus value
Abstract:
In this study, panel data, which were obtained from 36 countries, are utilized to empirically explore the factors that affect economic inequality before redistribution through taxes and social security. Our estimations reveal that legal origin influences the resolution of the paradox in which economic inequality before redistribution is high, although redistribution is low. Simultaneously, the Gini coefficient before redistribution can be lowered by strengthening the rule of law in countries with English legal origin, which is not the case in countries with other legal origins. In countries with French legal origins, strengthening the rule of law will increase the redistribution function. Furthermore, the rule of law, as well as central bank independence, can reduce economic inequality. The rule of law exhibits a negative relationship with the rate of surplus value, and the rate of surplus value exhibits a negative association with central bank independence. Simultaneously, the rule of law and central bank independence synergistically reduce economic inequalities. Thus, a weak rule of law, coupled with the absence of central bank independence, will promote monetary easing policies, which favours politicians. Moreover, inappropriate monetary easing policies would increase the control of companies over workers and promote exploitation.
Journal: Applied Economics
Pages: 1184-1200
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096867
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096867
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Handle: RePEc:taf:applec:v:55:y:2023:i:11:p:1184-1200
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# input file: RAEC_A_2096871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rana Mostaghel
Author-X-Name-First: Rana
Author-X-Name-Last: Mostaghel
Author-Name: Pejvak Oghazi
Author-X-Name-First: Pejvak
Author-X-Name-Last: Oghazi
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Title: Rugged individualism, economic growth, and inter-county variation in entrepreneurial activity
Abstract:
Does intra-country variation in individualism explain variations in intra-country entrepreneurial activity? Rugged individualism, a combination of individualism and anti-statism, is proxied by the total years of frontier experience in a US county between 1790 and 1890. We exploit this historic variation in tandem with present-day GDP growth in a county to test how the historic frontier experience interacts with changes in economic growth to explain the entrepreneurial activity. With small effect sizes, the findings demonstrate the greater (limited) value of rugged individualism in low (high) GDP growth conditions in driving entrepreneurial activity. Robust to a variety of specifications and a placebo test, the mechanism seems to operate through lower collective efficacy in counties with higher total frontier experience. The findings carry implications for within-country cultural variations and entrepreneurial activity.
Journal: Applied Economics
Pages: 1247-1272
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096871
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096871
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# input file: RAEC_A_2096872_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Judit Lilla Keresztúri
Author-X-Name-First: Judit Lilla
Author-X-Name-Last: Keresztúri
Author-Name: Edina Berlinger
Author-X-Name-First: Edina
Author-X-Name-Last: Berlinger
Author-Name: Ágnes Lublóy
Author-X-Name-First: Ágnes
Author-X-Name-Last: Lublóy
Title: Blowing the whistle on corporate fraud: the role of regulators and journalists in the financial vs non-financial sectors
Abstract:
We investigate the role of the regulatory environment and the press freedom in detecting corporate fraud. We study 1,242 internal frauds from 79 countries during the period of 2011–2019. The importance of regulation is assessed by splitting the sample into the highly regulated and monitored financial sector and the non-financial sector subject to less strict internal standards and industry-specific regulation. To examine the importance of journalists in fraud detection, we use the Word Press Freedom index and postulate that in countries with free media more internal frauds are detected. We find empirical evidence on a global sample that in the financial sector designated authorities (professional bank supervisors) play an important role in fraud detection. For the non-financial sector, we show that the media is crucial in detecting corporate fraud: the more freely journalists can write, the more events are detected.
Fraud detection mechanisms differ in the financial and the non-financial sectors.In the non-financial sector, journalists are crucial in detecting corporate fraud.In the non-financial sector, the higher the press freedom, the more events are detected.In the financial sector, press freedom is less relevant in detecting fraud.In the financial sector, designated authorities play an important role in fraud detection.
Journal: Applied Economics
Pages: 1273-1284
Issue: 11
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2096872
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2096872
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# input file: RAEC_A_2089622_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mengyi Cao
Author-X-Name-First: Mengyi
Author-X-Name-Last: Cao
Author-Name: Qing Xia
Author-X-Name-First: Qing
Author-X-Name-Last: Xia
Title: Credit constraints and college attendance
Abstract:
This paper shows that housing wealth alleviates credit constraints for potential college attendees by enabling homeowners to extract equity from their property and invest it in education. Using a comprehensive U.S. individual-level survey dataset, we find that one standard deviation increases of housing prices translate into approximately 72,000 more students enrolled in college each year. Our results stay significant when we use proxies for aggregate housing demand shocks and for the topological elasticity of housing supply to generate variation in home equity that should be exogenous to the decision of going to college.
Journal: Applied Economics
Pages: 432-446
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089622
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089622
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Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:432-446
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# input file: RAEC_A_2089344_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Valeriy Zakamulin
Author-X-Name-First: Valeriy
Author-X-Name-Last: Zakamulin
Title: Revisiting the duration dependence in the US stock market cycles
Abstract:
There is a big controversy among both investment professionals and academics regarding how the termination probability of a market state depends on its age. Using more than two centuries of data on the broad US stock market index, we revisit the duration dependence in bull and bear markets. Our results suggest that the duration dependence for both bull and bear markets is a nonlinear function of the state age. It appears that the duration dependence in bear markets is strictly positive. For 93% of the bull markets, the duration dependence is also positive. Only about 7% of the bull markets, those with the longest durations, do not exhibit positive duration dependence. We also compare a few selected theoretical distributions on their ability to describe the duration dependence in bull and bear markets. Our results advocate that the gamma distribution most often provides the best fit for both the survivor and hazard functions of bull and bear markets. However, our results reveal that none of the selected distributions accurately describes the right tail of the hazard functions.
Journal: Applied Economics
Pages: 357-368
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089344
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089344
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Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:357-368
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# input file: RAEC_A_2089347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gian Paulo Soave
Author-X-Name-First: Gian Paulo
Author-X-Name-Last: Soave
Title: A panel threshold VAR with stochastic volatility-in-mean model: an application to the effects of financial and uncertainty shocks in emerging economies
Abstract:
This article proposes a panel threshold VAR with stochastic volatility-in-mean model. The volatility process is given by the average volatility of the structural shocks affecting some selected variables and is interpreted as a measure of macroeconomic uncertainty. The posterior is approximated using an adaptive Metropolis-Within-Gibbs algorithm. We apply the method by analysing the effects of uncertainty and financial shocks in good times and financial distress in emerging economies. In our sample, we find that, under normal financial conditions, financial shocks play a slightly more pervasive role than uncertainty shocks. However, under financial stress periods, uncertainty shocks become more important than financial shocks.
Journal: Applied Economics
Pages: 397-431
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089347
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089347
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Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:397-431
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# input file: RAEC_A_2089623_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jianda Wang
Author-X-Name-First: Jianda
Author-X-Name-Last: Wang
Author-Name: Jun Zhao
Author-X-Name-First: Jun
Author-X-Name-Last: Zhao
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Title: How does the internet economy affect CO2 emissions? Evidence from China
Abstract:
To achieve China’s Nationally Determined Contributions (NDCs), the development of the Internet economy has become an important choice for emission-reduction strategies, but the relevant emission-reduction mechanisms are still unclear. Accordingly, by constructing a system-generalized method of moments (system-GMM) approach following the STIRPAT framework, we explore the effect of the Internet economy on carbon dioxide (CO2) emissions through the mediating effect of traffic demand and the moderating effect of technological innovation using panel data of 30 provinces in China from 2006 to 2017. The results indicate that: (1) the Internet economy mitigates CO2 emissions in China; for example, a 1% increase in the Internet economy indexes causes a 0.135% decrease in CO2 emissions; (2) the development of the Internet economy has an indirect effect on CO2 emissions by decreasing traffic demand; (3) technological innovation is a favorable moderator that expands the direct and indirect emission-reduction effects of the Internet economy; and (4) the mitigating effect of the Internet economy on CO2 emissions is significant at the lower quantiles (i.e. 10th, 25th, and 50th), which suggests the Internet economy is a superior predictor of CO2 emissions.
Journal: Applied Economics
Pages: 447-466
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089623
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089623
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Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:447-466
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# input file: RAEC_A_2087859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tanvir Pavel
Author-X-Name-First: Tanvir
Author-X-Name-Last: Pavel
Author-Name: Syed Hasan
Author-X-Name-First: Syed
Author-X-Name-Last: Hasan
Author-Name: Nafisa Halim
Author-X-Name-First: Nafisa
Author-X-Name-Last: Halim
Author-Name: Pallab Mozumder
Author-X-Name-First: Pallab
Author-X-Name-Last: Mozumder
Title: Impacts of transient and permanent environmental shocks on internal migration
Abstract:
We examined whether floods and cyclones, the shocks that are transient in nature, affect interregional migration differently compared to riverbank erosion that causes loss of lands and thus generates permanent shocks. We tracked Household Income and Expenditure Survey 2000 participants in nine coastal districts of Bangladesh and collected further information in 2015. Our analyses suggest that both transient and permanent shocks induce households to migrate, but the effect is higher for the latter category. Using a difference-in-differences setting, we find that migrants’ income and expenditure increase relative to their counterparts, indicating that facilitating migration may improve welfare in disaster-prone countries.
Journal: Applied Economics
Pages: 333-356
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2087859
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2087859
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Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:333-356
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# input file: RAEC_A_2089345_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kosei Fukuda
Author-X-Name-First: Kosei
Author-X-Name-Last: Fukuda
Title: Introducing new endogeneity into a simultaneous equation model: an application to corporate finance
Abstract:
Corporate finance data, such as cash holdings and dividend payments, are simultaneously determined. In this study, new endogeneity was introduced into a simultaneous equation model. The proposed model features a correlation between the explanatory variable in the first equation and the disturbance term in the second equation. The necessity of this endogeneity can be derived from a theoretical requirement and/or model identification requirement. Covariance structure analysis was performed to estimate this model using the maximum likelihood method. The efficacy of the proposed model is assessed by comparing it with conventional estimation methods, such as two-stage least squares. Finally, a Monte Carlo simulation was conducted to determine the bias conventional estimation methods produce in the case of this new endogeneity.
Journal: Applied Economics
Pages: 369-379
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089345
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089345
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Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:369-379
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# input file: RAEC_A_2089346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nhung Vu
Author-X-Name-First: Nhung
Author-X-Name-Last: Vu
Author-Name: Chau Le
Author-X-Name-First: Chau
Author-X-Name-Last: Le
Title: How much do cohesive and diversified networks improve financial access for small business?
Abstract:
This paper draws on transaction cost theory and network literature to examine how entrepreneurial network facilitates financial access for small and medium-sized enterprises (SMEs) in Vietnam. We characterize four major types of entrepreneurial network and find that network effects vary significantly, depending on the network members to whom entrepreneurs connect. The cohesive network appears to have the most potent positive effect on firms’ financial access by motivating them to apply for formal and informal credit actively and increasing the likelihood of their applications being approved. The financial network benefits SMEs’ credit access from the supply side, reducing transaction costs and mitigating market frictions. The value of political network is higher in the informal credit market than the formal one. Although political and financial connections do not boost entrepreneurs’ motivation to seek funding from formal capital market due to cognitive bias, they improve firms’ chances to obtain long-term funds if requested. Lastly, the benefit of diversified network does exist, but its marginal effect on firms’ access to financial resources is too small to gauge any practical significance.
Journal: Applied Economics
Pages: 380-396
Issue: 4
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2089346
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2089346
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Handle: RePEc:taf:applec:v:55:y:2023:i:4:p:380-396
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# input file: RAEC_A_2091106_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ahmet Ozkan
Author-X-Name-First: Ahmet
Author-X-Name-Last: Ozkan
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Title: The predictors of intent to leave in the accounting and finance sector in Asia-Pacific countries: a cross-industrial meta-analysis study
Abstract:
The main aim of this study was to survey the relationships between intent to leave and its strongest antecedents in the accounting and finance industry in Asia-Pacific countries. Novel to the literature, we also aim to test the moderating effects of continent to compare the results in Asia to the ones in Oceania and to test the moderating effect of industry to make a cross-industrial comparison. This study used meta-analysis technique and reviewed the studies in Scopus, Web of Science, GoogleScholar, and ProQuest to bring together 217 suitable studies. Twenty-four of these studies providing 32 correlation values are in the accounting and finance industry and 192 studies providing 309 correlation values are in other industries. Job satisfaction, organizational commitment, and burnout are chosen as the strongest antecedents of intent to leave and 217 studıes were used. The meta-analysis results showed that all the data sets regarding the surveyed relationships were heterogeneous and none of them included publication bias. The effect size of the relationship between job satisfaction and organizational commitment was the highest in the accounting and finance industry (r = 0.631). The effect sizes of job satisfaction, organizational commitment, and burnout on intent to leave were medium in the accounting and finance industry. The moderator analysis results suggested that region as a moderator for the relationship between burnout and intent to leave and industry is a significant moderator to explore the relationships between job satisfaction and intent to leave and for the relationships between organizational commitment and intent to leave. This meta-analysis compares the accounting and finance sector to other sectors in Asia-Pacific countries and it is the only study that could make such a comparison in this region.
Journal: Applied Economics
Pages: 467-486
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091106
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091106
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# input file: RAEC_A_2091107_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gimede Gigante
Author-X-Name-First: Gimede
Author-X-Name-Last: Gigante
Author-Name: Francesco Rubinacci
Author-X-Name-First: Francesco
Author-X-Name-Last: Rubinacci
Title: Explaining M&A performance: a configurational approach
Abstract:
Finance and management literature has witnessed numerous contributions analysing the market reaction to M&A deals and how this is affected by acquirer-, target- and deal-specific factors. However, if, on the one hand, the literature seems to agree that, generally, an M&A announcement has a negative impact on acquirer’s stock performance, scholars do not reach unanimous conclusions regarding the impact of individual variables on the acquirer’s performance. In response, the aim of this study is to demonstrate the potential of a configurational approach, in understanding M&A deals and their impact on acquirer’s stock performance. In this respect, a specific configuration of features was identified that, in contrast with the common belief of negative impact on acquirer’s stock returns associated with M&A announcements, registers a positive performance. This suggests that the focus of the literature should not be on one single factor, rather on evaluating holistically an M&A transaction, and this represents the main contribution of this study.
Journal: Applied Economics
Pages: 487-503
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091107
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091107
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# input file: RAEC_A_2091108_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thomas J. Weiss
Author-X-Name-First: Thomas J.
Author-X-Name-Last: Weiss
Author-Name: Lee A. Craig
Author-X-Name-First: Lee A.
Author-X-Name-Last: Craig
Author-Name: Julianne Treme
Author-X-Name-First: Julianne
Author-X-Name-Last: Treme
Title: The spy who dined well: James Bond and the real cost of fine dining
Abstract:
We constructed a time series of menu prices for the identifiable restaurants at which James Bond dined in France that yields one of the few international price series representing luxury services. We also compiled a time series on the salary of workers in the British Civil Service at Grade 7, like Bond, from 1953 to 2019. Our results indicate that French restaurant prices increased faster than Grade 7 salaries over the entire period and changes in the British exchange rate were not favourable for Bond. To dine weekly in France, during the 1950s and 1960s, Bond would have spent 18% of his salary; whereas over the course of the Euro era the same basket of luxury services would have required on average 26% of his salary.
Journal: Applied Economics
Pages: 504-517
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091108
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091108
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# input file: RAEC_A_2091109_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yang Li
Author-X-Name-First: Yang
Author-X-Name-Last: Li
Title: Variation in standard errors in event-study design: insights from empirical studies and simulations
Abstract:
A growing body of empirical research in applied economics exploits event-study design to show the dynamic effects of policy intervention. This article documents an interesting pattern in these empirical applications: cluster-robust standard errors (CRSE) from event study generally exhibit a decreasing trend over the pre-event periods, while standard errors (SEs) without clustering adjustment take similar values across pre-event periods. This article explores possible explanations for this recurrent issue by documenting the pervasiveness of this pattern across empirical applications and by Monte Carlo simulations. The simulation results show that CRSE generally present a decreasing pattern in pre-event periods and more so when intra-cluster correlation is high. The SEs also exhibit a decreasing trend using wild bootstrap and a more robust statistical inference in the case of few clusters. Overall, my results suggest that within-cluster correlation contributes to explaining the pattern.
Journal: Applied Economics
Pages: 518-530
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091109
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091109
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Handle: RePEc:taf:applec:v:55:y:2023:i:5:p:518-530
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# input file: RAEC_A_2091110_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Danny Klinenberg
Author-X-Name-First: Danny
Author-X-Name-Last: Klinenberg
Author-Name: Richard Startz
Author-X-Name-First: Richard
Author-X-Name-Last: Startz
Title: Covid, colleges, and classes
Abstract:
At the start of the 2020 school year, some colleges chose to reopen in person while others offered primarily online classes. We find that colleges responded to financial and other incentives largely as one might expect. Larger shares of revenue attributed to in-person activities, such as dorms and dining halls, led schools to reopen in person. In general, the share of revenue due to tuition and fees had little association with reopening in-person, which is consistent with the idea that the effect of the mode of reopening on enrolment was ambiguous. However, private schools experiencing financial distress due to tuition and fees were more likely to reopen in-person while public schools were less likely. Public colleges were influenced by political pressures and the fraction of students from out of state, while private schools responded to the severity of COVID in their local community.
Journal: Applied Economics
Pages: 531-545
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091110
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091110
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# input file: RAEC_A_2091745_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Joanna Maria Stawska
Author-X-Name-First: Joanna Maria
Author-X-Name-Last: Stawska
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: Fiscal and monetary interactions in the European countries: panel data analysis
Abstract:
The importance of the decisions made by central banks and governments has been increasing recently, especially in the EU countries. The relationships between short-term interest rates, inflation rates, and public deficits have not been thoroughly described in the literature concerning the recent European cases. It is worth observing how the relationships between the key variables in the field of monetary and fiscal policy behave in various groups of countries, e.g. in countries with low/high General Government deficits or in countries with low high public debt. The aim of the article is to empirically analyse the relationship between interest rates, inflation rates, and public deficits in European countries in the years between 1996–2019. We studied the relationships between interest rates, inflation rates, and public deficits. We turned to dynamic panel data methods (two-step system GMM). First, interest rates and inflation rates have been related following the Taylor-rule direction across the European economies. Second, we have also found a positive relationship between inflation rates and public deficits, but reverting the postulated Sargent and Wallace (1981) hypothesis of seigniorage. Third, deficit and inflation rates have positive relations across European observations but more significantly in the cases of high deficits or with highly indebted economies.
Journal: Applied Economics
Pages: 562-576
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091745
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091745
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# input file: RAEC_A_2091744_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Carmelo García-Pérez
Author-X-Name-First: Carmelo
Author-X-Name-Last: García-Pérez
Author-Name: Mercedes Prieto
Author-X-Name-First: Mercedes
Author-X-Name-Last: Prieto
Author-Name: Jorge Seva
Author-X-Name-First: Jorge
Author-X-Name-Last: Seva
Author-Name: Hipolito Simon
Author-X-Name-First: Hipolito
Author-X-Name-Last: Simon
Author-Name: Raquel Simón-Albert
Author-X-Name-First: Raquel
Author-X-Name-Last: Simón-Albert
Title: A multidimensional operationalization of precarious employment with a counting approach: evidence from Spain
Abstract:
The article proposes a novel multidimensional operationalization of precarious employment using the Alkire-Foster dual threshold counting approach methodology. The proposal is made in a context in which, although precarious employment tends to be considered a multidimensional construct characterized by an accumulation of unfavourable features of employment quality, there is neither a standard and generally accepted definition nor operationalization of the phenomenon in the literature. The proposed methodology has the advantages that it can be easily applied to the usual content of most labour surveys, and that it allows an analysis of both the scale and the nature of precariousness. The illustrative evidence obtained for Spain reveals both a high incidence of multidimensional precariousness (affecting almost 40% of wage earners) and a high intensity (multidimensional precarious wage earners suffer from around 3 job deprivations). Moreover, it shows that employment precariousness is highly persistent over time and tends to grow over time and that there is great heterogeneity in the scope of the phenomenon according to its individual incidence and among different groups of workers.
Journal: Applied Economics
Pages: 546-561
Issue: 5
Volume: 55
Year: 2023
Month: 01
X-DOI: 10.1080/00036846.2022.2091744
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091744
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# input file: RAEC_A_2092592_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jisheng Yang
Author-X-Name-First: Jisheng
Author-X-Name-Last: Yang
Author-Name: Jiaolong Li
Author-X-Name-First: Jiaolong
Author-X-Name-Last: Li
Author-Name: Yanjun Cao
Author-X-Name-First: Yanjun
Author-X-Name-Last: Cao
Title: Analysis of peer effects on consumption in rural China based on social networks
Abstract:
This study empirically analyses peer effects on daily essential consumption and social related expenditure in rural China, where clan clustering often characterizes villages. The proportion of peer effects and autonomous behaviour in households’ consumption behaviour is estimated by quasi-maximum likelihood estimation of the spatial autoregressive model, which includes the differences in characteristics between the household and its peers. It shows that, households put more weight on peer effects in daily essentials consumption, whereas more weight is put on autonomous behaviour in social related expenditure. In addition, peer effects may be significantly overestimated, especially for clothing and human affairs expenditure, if the differences in characteristics between the household and its peers are not considered.
Journal: Applied Economics
Pages: 617-635
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2092592
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2092592
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# input file: RAEC_A_2092053_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Messaoud Chibane
Author-X-Name-First: Messaoud
Author-X-Name-Last: Chibane
Title: Can COVID-19 solve the equity premium puzzle?
Abstract:
We propose a new approach for estimating rare disaster event models where we only use U.S. national consumption data as an alternative to the ubiquitous Barro and Ursúa’s (2008, 2012) multi-country data set. We find that the 2020 COVID crisis unambiguously reveals the presence and significance of rare disasters in consumption dynamics. Using our estimated parameters and recursive preferences, our approach is able to solve the risk-free rate and equity premium puzzles without resorting to multi-country data in estimating the model. Our analysis shows that the severity of disasters is vastly underestimated in the U.S. and that more than 400 years of consumption data would be necessary to get an accurate estimate.
Journal: Applied Economics
Pages: 603-616
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2092053
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2092053
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Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:603-616
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# input file: RAEC_A_2093829_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Siliang Guo
Author-X-Name-First: Siliang
Author-X-Name-Last: Guo
Author-Name: Heng Ma
Author-X-Name-First: Heng
Author-X-Name-Last: Ma
Title: Will companies take the initiative in green technology innovation? Empirical evidence from listed manufacturing companies in China
Abstract:
Green technology innovation (GTI) is an important driver for national green development and a strong fulcrum for the clean production of companies. This paper focuses on the impact of top management team’s (TMT’s) inherent characteristics on GTI from the perspectives of TMT heterogeneity and text tone in management discussion and analysis (MD&A), as well as the moderating role of executive compensation incentives and financial constraints. The results reveal that: a) the TMT heterogeneity has different effects on companies’ GTI; b) the tone in MD&A can significantly promote the companies’ GTI; c) both executive compensation incentives and financial constraints significantly adjust the relationship between the TMT heterogeneity or the tone in MD&A on GTI but in different directions. Moreover, the basic conclusions suitable for non-state-owned companies yet differ in state-owned companies considering the property heterogeneity. Thus, this paper constructs a new integrated framework of TMT heterogeneity, tone in MD&A, executive compensation incentives and financial constraints to stimulate the enthusiasm and initiative of companies to develop GTI, which has an important practical significance on accelerating the sustainable development of green production in developing countries. Finally, this paper offers corresponding policy recommendations.
Journal: Applied Economics
Pages: 636-652
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2093829
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2093829
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# input file: RAEC_A_2093830_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ruifeng Xu
Author-X-Name-First: Ruifeng
Author-X-Name-Last: Xu
Author-Name: E Guan
Author-X-Name-First: E
Author-X-Name-Last: Guan
Title: Can blockchain innovation promote total factor productivity? Evidence from Chinese-listed firms
Abstract:
Although the importance of digital economy development has gradually been attached, blockchain technology has been widely questioned in China because it originated from bitcoin, which has been abandoned in China. Can blockchain innovation promote total factor productivity? Based on the blockchain patent data of Chinese-listed firms from 2012 to 2020, we show that blockchain innovation activities can improve the total factor productivity (TFP) of enterprises and verify its robustness using instrumental variable approach, system GMM and Heckman’s two-step selection method. Results of mediation effect model show that enterprises’ blockchain innovation activities mainly improve TFP through three channels: alleviating financing constraints, reducing supply chain concentration and inefficient investment. Heterogeneity analysis shows that electronic digital data processing blockchain patents have the highest practical value, while financial blockchain innovation inhibits the improvement of TFP in China. Blockchain innovation can bring positive effects on the TFP of manufacturing enterprises and leasing and business service enterprises. The increase in TFP of leasing and business service enterprises brought by blockchain innovation is nearly 70 times that of the baseline regression. We further provide blockchain innovation development suggestions for Chinese government based on these conclusions.
Journal: Applied Economics
Pages: 653-670
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2093830
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2093830
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# input file: RAEC_A_2094327_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Getu Tigre
Author-X-Name-First: Getu
Author-X-Name-Last: Tigre
Author-Name: Almas Heshmati
Author-X-Name-First: Almas
Author-X-Name-Last: Heshmati
Title: Smallholder farmers’ crop production and input risk analysis in rural Ethiopia
Abstract:
Different types of risks are inherent in agricultural production. This study examines agricultural input risks faced by smallholder farmers in rural Ethiopia. It uses data from farm household surveys covering the period 1995–2015. The study uses a stochastic production function approach for estimating the mean production and risks of agricultural inputs. The mean production estimation results are consistent with the economic theory of conventional inputs. Land and labour have higher elasticities than the other inputs. The variance or risk estimation results show that fertilizers and labour are risk-decreasing inputs, while land is a risk-increasing input. Crop diversification has a risk-decreasing impact. The more farmers diversify their crops, the less is the yield variability. However, the risk variation effects of farm inputs vary across regions in the country. For example, risk-decreasing effects of fertilizers are high in the Oromia region, moderate in the Southern Nations and Nationalities and low in the Amhara regional state. Variations in regional input risks need to be considered in national agriculture risk management and food security efforts. The risk variation effects of these inputs decreased over time.
Journal: Applied Economics
Pages: 671-689
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094327
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094327
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Handle: RePEc:taf:applec:v:55:y:2023:i:6:p:671-689
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# input file: RAEC_A_2091746_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Inna Zaytseva
Author-X-Name-First: Inna
Author-X-Name-Last: Zaytseva
Author-Name: Daniil Shaposhnikov
Author-X-Name-First: Daniil
Author-X-Name-Last: Shaposhnikov
Title: Moneyball in offensive versus defensive actions in football
Abstract:
Market inefficiencies, known as Moneyball effect, have been recently documented in different sports and their scope largely remains an empirical question. This article focuses on football, where fans and club managers seem to value forwards more than defenders. Apparently, football rules imply equally important roles for goals scored and goals conceded in a team win. Economic theory in this case suggests that marginal returns on offensive and defensive efforts should be equal. This prediction can be potentially violated, resulting in labour market inefficiency. To test this hypothesis, we use two separate data sets at team-game and player-season levels (1224 and 772 observations, respectively) from two seasons (2017/18–2018/19) of the German Bundesliga. We compare the relative contribution of the offensive and defensive actions to a team win with the same relative contribution to players’ market value and show that defensive actions are relatively underestimated by the market compared to the offensive.
Journal: Applied Economics
Pages: 577-593
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2091746
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091746
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# input file: RAEC_A_2091747_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: J. Stephen Ferris
Author-X-Name-First: J. Stephen
Author-X-Name-Last: Ferris
Author-Name: Bharatee Bhusana Dash
Author-X-Name-First: Bharatee Bhusana
Author-X-Name-Last: Dash
Title: Does a swing voter model with voter turnout reflect the closeness of the Indian state elections: 1957 - 2018?
Abstract:
In the classic model of Besley, Persson and Strum voters are viewed as either committed to a political party or uncommitted, available for capture by the offer of policies that better reflect the programs they desire. Through an inter-party electoral competition for the support of such swing voters government services become aligned with those most desired by the electorate and the efficiency by which government services are provided is enhanced. In this paper, we extend the BPS model to incorporate voter turnout, develop a new method of measuring the salience of noneconomic issues and then test the model’s predictions on election data from 14 Indian States between the years 1957 and 2018. The results are broadly consistent with the predictions of the model but fit particularly well the lesser developed, so-called BIMAROU states. That is, an election is more competitive, as measured by having a smaller first versus second place vote share margin, when voter turnout is higher and both the proportion of asymmetrically adjusted safe seats and the state distribution of vote volatilities across constituencies are lower.
Journal: Applied Economics
Pages: 594-602
Issue: 6
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2091747
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2091747
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# input file: RAEC_A_2094330_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wei Fong Pok
Author-X-Name-First: Wei Fong
Author-X-Name-Last: Pok
Author-Name: M. Humayun Kabir
Author-X-Name-First: M. Humayun
Author-X-Name-Last: Kabir
Author-Name: Martin Young
Author-X-Name-First: Martin
Author-X-Name-Last: Young
Title: Media content, sentiment and emerging market futures returns
Abstract:
The paper attempts to capture the sentiment derived from routine financial news and outlines the impact of the media content on the main index futures contracts of Hong Kong and Singapore. News factors are generated from routine financial news, but pessimistic market sentiment factors are more prevalent. High pessimistic news factors predict lower returns for the same day, and the returns start to reverse two days after the news for Hong Kong and Singapore markets. The finding is consistent with the sentiment theory. There is a significant reversal in returns, and the reversal in returns offsets the initial changes entirely. The bad news factor does not seem to work as a proxy for trading costs. The sub-sample results are similar to the whole sample. We also find the significant impact of U.S. news sentiment on news factors, futures return, and open interests in both markets. Trading strategies based on bad news factors generate economically significant returns when trading costs are considered.
Journal: Applied Economics
Pages: 724-749
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094330
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094330
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Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:724-749
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# input file: RAEC_A_2094329_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Changling Sun
Author-X-Name-First: Changling
Author-X-Name-Last: Sun
Author-Name: Nian Li
Author-X-Name-First: Nian
Author-X-Name-Last: Li
Author-Name: Peng Gao
Author-X-Name-First: Peng
Author-X-Name-Last: Gao
Author-Name: Muhammad Asif Khan
Author-X-Name-First: Muhammad Asif
Author-X-Name-Last: Khan
Author-Name: Zilan Bi
Author-X-Name-First: Zilan
Author-X-Name-Last: Bi
Title: Can core competence help enterprises reduce the cost of debt? – empirical evidence based on text analysis
Abstract:
This article constructs the measurement index of core competence by text analysis method and empirically tests its impact on the cost of debt. We find that the stronger the core competence, the lower the cost of debt. The mechanism test shows that the impact of core competence on the cost of debt is mainly realized by reducing the default risk and alleviating the agency problem. In further research, after distinguishing the types of core competence, we find that core competence of resources, especially the tangible resources, is the key factor to effectively reduce the cost of debt; after distinguishing the nature of property rights, we find that the impact of core competence on the cost of debt mainly plays a role in non-state-owned enterprises with strong financing constraints. This article not only enriches the literature on the economic consequences of core competence and factors affecting the cost of debt, but also provides scientific support for the government and other relevant department to alleviate the problem of financing difficulties and financing expensive.
Journal: Applied Economics
Pages: 710-723
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094329
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094329
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Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:710-723
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# input file: RAEC_A_2094331_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Minh Ha
Author-X-Name-First: Nguyen Minh
Author-X-Name-Last: Ha
Author-Name: Van Huong Le
Author-X-Name-First: Van Huong
Author-X-Name-Last: Le
Author-Name: Cuong Tran
Author-X-Name-First: Cuong
Author-X-Name-Last: Tran
Title: Difference in the role of public governance for enterprises performance of ownership types in Vietnam
Abstract:
This paper aims to examine the difference in role of public governance on the performance of each business ownership type in Vietnam. Using FGLS regression and Blinder – Oaxaca decomposition methods, the study finds out gaps of enterprises performance among state-owned enterprises, non-state enterprises and FDI enterprises in Vietnam in the period 2016–2019. The variation is due to business characteristics and distinction between ownership types. Besides, the decomposition results show that public governance is a factor of the enterprises performance’s differentiation in Vietnam, and state-owned enterprises are often more favoured than FDI enterprises and non-state enterprises. Incentives for state-owned enterprises are mainly presented in policies, such as information public and transparency, reducing time-cost, reducing informal charges and local fair competition promotion. Meanwhile, incentives for FDI enterprises are mainly presented in policies, such as land policy, information public and transparency, reducing time-cost, fair competition promotion, business support services, local legal frame and security. Specifically, the study implies that improving public governance in Vietnam in the period 2016–2019 has resulted in positively effect on state-owned enterprises’ performance and fairly low effect on those of FDI enterprises and non-state enterprises.
Journal: Applied Economics
Pages: 750-763
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094331
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094331
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Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:750-763
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# input file: RAEC_A_2094332_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rohit Prasad
Author-X-Name-First: Rohit
Author-X-Name-Last: Prasad
Author-Name: Prageet Aeron
Author-X-Name-First: Prageet
Author-X-Name-Last: Aeron
Author-Name: Varadharajan Sridhar
Author-X-Name-First: Varadharajan
Author-X-Name-Last: Sridhar
Title: New determinants of spectrum price in a 5G world
Abstract:
The theoretical models presented in the article establish the possibility that reduced congestion in unlicenced bands can reduce the profits of telecommunications operators, and consequently, depress spectrum prices. Further, certain modes of deploying licenced and unlicenced spectrum bands to provide services may render competitive dynamics uncertain, unpredictable, and unstable. Finally, the advent of Content and Application Providers (CAPs) providing substitutes or complements to traditional telecommunications services can also reduce operator profits. On the other hand, benign impacts on operator profits and spectrum prices cannot be ruled out. Given these possibilities, an empirical analysis is carried out to examine the impact of the participation of CAPs and the reduced congestion in unlicenced networks on spectrum prices. The variables of VOIP fixed-line subscribtions and mobile broadband density are used as proxies for the increased usage of unlicenced spectrum and the entry of CAPs as providers of substitutes and complements. These variables are consistently significant in our analysis indicating that there are indeed new drivers determining spectrum prices. Policy implications of the findings are enumerated.
Journal: Applied Economics
Pages: 764-782
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094332
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094332
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# input file: RAEC_A_2094879_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Oveis Madadian
Author-X-Name-First: Oveis
Author-X-Name-Last: Madadian
Author-Name: Maud Van den Broeke
Author-X-Name-First: Maud
Author-X-Name-Last: Van den Broeke
Title: R&D investments in response to performance feedback: moderating effects of firm risk profile and business strategy
Abstract:
R&D investments in response to performance feedback have been extensively studied. We show that both firm risk profile (i.e. low vs high risk) and business strategy (i.e. Prospector vs Defender), two aspects understudied in this context, have incremental moderating effects (both separate and joint) on this R&D-performance feedback relationship. Using a sample of US listed firms from 2000 to 2019, we observe that, when performance relative to aspiration level decreases (increases), without controlling for moderating effects of risk and strategy, firms tend to increase (decrease) R&D investments. However, as risk profile changes from low to high risk, responses to performance feedback tend to change from decreasing R&D or maintaining status quo to increasing R&D investments. We also find that, in response to performance deviation from aspiration level (regardless of the direction), Defenders tend to decrease R&D investments, regardless of risk profile, whereas Prospectors tend to increase R&D investments (maintain status quo) when their performance relative to aspiration level decreases (increases).
Journal: Applied Economics
Pages: 802-822
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094879
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094879
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# input file: RAEC_A_2094328_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Weibo Yan
Author-X-Name-First: Weibo
Author-X-Name-Last: Yan
Author-Name: Peng Nie
Author-X-Name-First: Peng
Author-X-Name-Last: Nie
Title: Child education-induced migration and its impact on the economic behaviors of migrated households in China
Abstract:
Using the 2011–2013 China Migrants Dynamic Survey, this paper utilizes the quarter of the year in which a child was born as an instrumental variable to measure child education shock and explores its impact on migrated households. We only find significant education-induced migration among boys, which we attribute to son preference in China. Due to child education-induced migration, the per capita household consumption increases by 56.7%, the savings rate decreases by 40.3%, and remittances sent home decline by about 1.3 monthly household incomes, however, there are no effects on income, food consumption, and house rent. After exploring the mechanisms underlying child education-induced migration, we find that children migrate with their parents are less likely to pursue a better education in urban areas. Because of the closure and consolidation of rural primary schools, children are forced to migrate due to their education needs. The accessibility of primary schools in urban areas is also responsible for migration decisions regarding children. This paper facilitates understanding of how Hukou influences gender inequality in China. We also provide evidence to show that the segregation of the education system through Hukou is a possible explanation for the low consumption rate of migrants.
Journal: Applied Economics
Pages: 691-709
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094328
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094328
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Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:691-709
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# input file: RAEC_A_2094333_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Faheem Ur Rehman
Author-X-Name-First: Faheem Ur
Author-X-Name-Last: Rehman
Author-Name: Md Monirul Islam
Author-X-Name-First: Md Monirul
Author-X-Name-Last: Islam
Title: Financial infrastructure—total factor productivity (TFP) nexus within the purview of FDI outflow, trade openness, innovation, human capital and institutional quality: Evidence from BRICS economies
Abstract:
BRICS countries’ contribution to the global economy has received wider attention. The critical factor behind their role is financial market reform that stimulates these economies’ productivity growth. This research contributes to constructing a comprehensive index of financial infrastructure and measuring its relationship with BRICS economies’ total factor productivity (TFP) within the purview of outward FDI, trade openness, human capital, innovation and institutional quality during 1990–2019 using the CS-ARDL technique. The findings divulge a significant and positive role of financial infrastructure in TFP both in the long and short runs, while outward FDI, trade openness, human capital, and innovation walk on the same footing in BRICS countries. Moreover, the CS-ARDL-based investigated findings remain the same across the two-way fixed effect with Driscoll and Kraay Standard Error technique. Therefore, BRICS countries’ more promotion of financial dynamics and other ancillary economic, demographic, and technological factors is critical to stepping towards the spectacular growth trajectory.
Journal: Applied Economics
Pages: 783-801
Issue: 7
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094333
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094333
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Handle: RePEc:taf:applec:v:55:y:2023:i:7:p:783-801
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# input file: RAEC_A_2118223_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chan Hyeon Hur
Author-X-Name-First: Chan Hyeon
Author-X-Name-Last: Hur
Author-Name: Kihan Kim
Author-X-Name-First: Kihan
Author-X-Name-Last: Kim
Title: The anticipated legacies of mega sporting events: An econometric analysis of Olympic announcement effect on the real estate market in small communities
Abstract:
In this study, we examine the influence of the successful Olympic bid announcement on real estate prices for properties in host districts of the 2018 PyeongChang Olympic Winter Games. We perform a series of simple mean comparisons and hedonic spatial difference-in-differences analyses on a total of 198,048 apartment sales records for 1,059 apartment complexes collected from 2008 to 2017—3 years prior to winning the Olympic bid to 6 years after. The sales prices of the apartment complexes in the three Olympic host districts were 6.6% higher than the nonhost districts after eliminating the difference that had already existed before the announcement. Further analyses indicate a price premium for the apartments located near the main Olympic stadium. This study extends the research on the effects of Olympic bid announcements on real estate prices for small host cities with little international awareness.
Journal: Applied Economics
Pages: 823-838
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2118223
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118223
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# input file: RAEC_A_2095338_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Meng-Chi Tang
Author-X-Name-First: Meng-Chi
Author-X-Name-Last: Tang
Title: Manageable hospital service volume under global budgeting: evidence from a policy reform in Taiwan
Abstract:
This paper investigates whether health care providers change their behaviour in response to different payment structures. Using a policy reform in Taiwan that allowed hospitals to switch from a global budgeting system, a reweighted fee-for-service system, to an individual budgeting system, a capitation system, the results show that the individual budgeting system led to lower services volumes. This effect is significant for more discretionary care but not for less elective services like cancer care.
Journal: Applied Economics
Pages: 894-906
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095338
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095338
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Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:894-906
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# input file: RAEC_A_2094881_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Cahit Guven
Author-X-Name-First: Cahit
Author-X-Name-Last: Guven
Author-Name: Panagiotis Sotirakopoulos
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Sotirakopoulos
Author-Name: Aydogan Ulker
Author-X-Name-First: Aydogan
Author-X-Name-Last: Ulker
Title: Individual labour market transitions of Australians during and after the National COVID-19 Lockdown
Abstract:
We examine the individual labour market transitions of Australians during and after the National COVID-19 Lockdown, controlling for demographic characteristics and person fixed effects across different subgroups of the population using the Longitudinal Labour Force Survey. The National COVID-19 Lockdown (which began on 21 March 2020 with the introduction of social distancing rules and the closure of non-essential services across individual states and territories and lasted until the end of June 2020) decreased the overall labour force participation by 3% and increased unemployment by 1.8%. However, the economy recovered to a certain extent after the lockdown, with labour force participation increasing by 0.051% and unemployment declining by 0.049% for each additional week after the end of the lockdown. Our conditional estimates show that the national lockdown did not affect the genders differently in terms of unemployment, while females recovered faster during the post-lockdown period. People working in transport, postal, administrative, and arts and recreation services decreased their working hours significantly during the lockdown relative to those employed in other industries, but we do not observe any significant difference in their post-lockdown recovery patterns. Our results could help policy makers better target the labour market outcomes of the most at-risk individuals.
Journal: Applied Economics
Pages: 853-868
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094881
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094881
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# input file: RAEC_A_2094880_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Imlak Shaikh
Author-X-Name-First: Imlak
Author-X-Name-Last: Shaikh
Author-Name: Mohd Anwar
Author-X-Name-First: Mohd
Author-X-Name-Last: Anwar
Title: Digital bank transactions and performance of the Indian banking sector
Abstract:
Our study examines the impact of digital bank transactions on the performance of Indian banks. The study aims to identify the digital mode of transaction parameters that influence financial and operating performance and reduce bank costs. A panel data set has been prepared for 2011 to 2020, considering 32 public and private banks. On the prima facie, the share of public sector banks has declined in the digital mode of transactions on the counterpart of private sector banks. It’s evidenced that a 1% increase in the value of Real-Time Gross Settlement (RTGS) and National Electronic Fund Transactions (NEFT) causes a rise of 0.03% and 0.08% in the business per employee, respectively. Indeed, a change in the RTGS and NEFT transaction further explains CASA to Deposit ratio (0.016% and 0.0078%). Also, a change in RTGS shows a prominent effect on the advances (0.7%). Credit card transactions at ATMs and POS have negatively impacted the cost of funds. Our study proposes two practical implications: First, acceleration in promoting RTGS-based transactions is required; consequently, it will enhance the bank’s performance. Secondly, banks should facilitate credit-based digital transactions to lessen the cost of funds.
Journal: Applied Economics
Pages: 839-852
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094880
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094880
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# input file: RAEC_A_2094883_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amir Arjomandi
Author-X-Name-First: Amir
Author-X-Name-Last: Arjomandi
Author-Name: Hassan F. Gholipour
Author-X-Name-First: Hassan F.
Author-X-Name-Last: Gholipour
Author-Name: Reza Tajaddini
Author-X-Name-First: Reza
Author-X-Name-Last: Tajaddini
Author-Name: Charles Harvie
Author-X-Name-First: Charles
Author-X-Name-Last: Harvie
Title: Environmental expenditure, policy stringency and green economic growth: evidence from OECD countries
Abstract:
This study explores the link between environmental policy stringency and spending and the growth of environmental GDP and productivity. Using the Pooled Mean Group Autoregressive Distributed Lag model, we examine the short- and long-term effectiveness of environmental policy stringency and environmental spending on pollution-adjusted GDP and productivity growth for a sample of OECD nations. Although these policies and their outcomes differ considerably from country to country, our findings reveal that governments’ expenditure on environmental protection emerges as a significantly stimulatory factor of national output in the short-term. Our long-run results show that both tighter environmental policies and environmental expenditure can slow down ‘green’ GDP and productivity growth over time with policy stringencies having a weaker impact. Overall, our findings do not support the Porter Hypothesis, but rather confirm the widely held view that these policies may hinder economic activity and growth.
Journal: Applied Economics
Pages: 869-884
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094883
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094883
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# input file: RAEC_A_2095339_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lionel Artige
Author-X-Name-First: Lionel
Author-X-Name-Last: Artige
Author-Name: Sousso Bignandi
Author-X-Name-First: Sousso
Author-X-Name-Last: Bignandi
Title: The firm size distribution: evidence from Belgium
Abstract:
The firm size distribution (FSD) is one of the most well-known economic empirical regularity in market economies. Its functional form, postulated in macroeconomic models with heterogeneous firms, can be approximated by a parametric distribution. However, the parametric approximations proposed in the literature have long been contested due to the lack of unbiased databases and robust statistical methods. This paper addresses these shortcomings. First, a robust estimation method is proposed to test the fit of parametric distributions and to determine the one offering the best fit at different truncation thresholds. Then, by applying it to a comprehensive database of Belgian firms for the period 2006–2012, the results show that the lognormal distribution is a better approximation of the empirical FSD than the Pareto distribution. These results hold true at the aggregate, sectoral and regional levels establishing that the shape of the aggregate distribution is not an aggregation artefact arising from the potential distributional heterogeneity of sectoral or regional subsets. This empirical evidence is essential information for tracing the root causes of a plausible underlying stochastic model explaining firm dynamics.
Journal: Applied Economics
Pages: 907-923
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095339
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095339
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# input file: RAEC_A_2094886_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kuang-Cheng Chai
Author-X-Name-First: Kuang-Cheng
Author-X-Name-Last: Chai
Author-Name: Jiawei Zhu
Author-X-Name-First: Jiawei
Author-X-Name-Last: Zhu
Author-Name: Hao-Ran Lan
Author-X-Name-First: Hao-Ran
Author-X-Name-Last: Lan
Author-Name: Yujiao Lu
Author-X-Name-First: Yujiao
Author-X-Name-Last: Lu
Author-Name: Ke-Chiun Chang
Author-X-Name-First: Ke-Chiun
Author-X-Name-Last: Chang
Title: The spillover effects of corporate giving in china: effects of enterprise charitable giving and exposure on enterprise performance
Abstract:
Panel data from China’s listed enterprises from 2014–2019 was selected as a sample to study the relationship between enterprise charitable giving, exposure, and enterprise performance in this study. It was revealed that enterprise charitable giving has a U-shaped relationship with enterprise performance. Further research has found that philanthropic exposure plays a positive moderating role in the relationship between charitable giving and enterprise performance. This study provides information on the scale of donation from the perspective of enterprise performance, suggesting new paths for enterprises to improve their performance and help China increase funds for disaster relief and post-disaster reconstruction.
Journal: Applied Economics
Pages: 885-893
Issue: 8
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2094886
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2094886
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Handle: RePEc:taf:applec:v:55:y:2023:i:8:p:885-893
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# input file: RAEC_A_2095340_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bastien Lextrait
Author-X-Name-First: Bastien
Author-X-Name-Last: Lextrait
Title: Scaling up SMEs’ credit scoring scope with LightGBM
Abstract:
Small and Medium Size enterprises (SMEs) are critical actors in the fabric of the economy. Their growth is often limited by the difficulty in obtaining financing. Basel II accords enforced the obligation for banks to estimate the probability of default of their obligors. Currently used models are limited by the simplicity of their architecture and the available data. State of the art machine learning models are not widely used because they are often considered as black boxes that cannot be easily explained or interpreted. We propose a methodology to combine high predictive power and powerful explainability using various Gradient Boosting Decision Trees (GBDT) implementations and Shapley additive explanation (SHAP) values as post-prediction explanation model. This method is developed and tested using a nation-wide sample of French companies, and a history of past failures extracted from commercial court decisions. The performances of GBDT models are compared with traditional credit scoring algorithms. GBDT provides the best performances over the test sample, while being fast to train and economically sound. Results obtained from SHAP values analysis are consistent with previous socio-economic studies. Providing such a level of explainability to complex models may convince regulators to accept their use in automated credit scoring.
Journal: Applied Economics
Pages: 925-943
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095340
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095340
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# input file: RAEC_A_2095346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Keyang Li
Author-X-Name-First: Keyang
Author-X-Name-Last: Li
Author-Name: Yu Qin
Author-X-Name-First: Yu
Author-X-Name-Last: Qin
Author-Name: Guoxu Wei
Author-X-Name-First: Guoxu
Author-X-Name-Last: Wei
Author-Name: Jing Wu
Author-X-Name-First: Jing
Author-X-Name-Last: Wu
Title: What drives health-care spending in China? A nationwide decomposition analysis
Abstract:
In this study, we explore the geographic variation in health-care spending and its driving factors in China, using a nationwide and claim-level sample of inpatients ensured under the urban basic medical insurance schemes in 2010. We show geographic variation in health-care spending is substantial in China and is significantly larger than Medicare spending in the US. The substantial geographic variation is primarily driven by the quantity variation. We also discuss the potential correlates of the quantity of health care at the city level. The findings imply possible allocation inefficiency in China’s current urban health-care system.
Journal: Applied Economics
Pages: 1028-1043
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095346
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095346
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# input file: RAEC_A_2095345_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Marcus T. Wolfe
Author-X-Name-First: Marcus T.
Author-X-Name-Last: Wolfe
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Title: Does democracy make it easy? the influence of a sudden onset of democracy and entrepreneurship
Abstract:
Based on the Arab Spring event in Tunisia and using neighbouring countries as the control group, we test whether the onset of democracy increases entrepreneurial activity in the medium term. In Study 1, our findings show that democracy did not change the overall new business density in Tunisia. In Study 2, we do not find an effect on engagement in startups or business ownership. However, democracy improved perception of startup skills and reduced perception of fear of failure; with only males reporting higher perceived startup skills. The findings in Study 2 are also robust to five alternate measures of democracy.
Journal: Applied Economics
Pages: 1012-1027
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095345
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095345
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# input file: RAEC_A_2095343_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaoping Li
Author-X-Name-First: Xiaoping
Author-X-Name-Last: Li
Author-Name: Chunyang Zhou
Author-X-Name-First: Chunyang
Author-X-Name-Last: Zhou
Author-Name: Wei Huang
Author-X-Name-First: Wei
Author-X-Name-Last: Huang
Title: Heterogeneous trading of option implied volatility
Abstract:
We investigate the equilibrium properties of the implied volatility in the option market within the framework of a dynamic heterogeneous agent model. Fundamentalists and chartists are incorporated into our heterogeneous agent model, and they can change their types based on their previous performance. We show that the stability conditions of the model mainly depend on the relationship between the mean-reverted coefficients of fundamentalists and the extrapolation coefficients of chartists. The empirical results show that the fundamentalists and chartists of volatility coexist in the option market. However, during the market panic, especially before and after the 2008 financial crisis, chartists dominate the market.
Journal: Applied Economics
Pages: 990-998
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095343
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095343
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Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:990-998
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# input file: RAEC_A_2095344_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Qian Li
Author-X-Name-First: Qian
Author-X-Name-Last: Li
Author-Name: Jingyuan Yu
Author-X-Name-First: Jingyuan
Author-X-Name-Last: Yu
Title: Place-based policies and regional innovation: evidence from western development in China
Abstract:
Innovation is the key to economic development. This study used the difference-in-difference model to examine the impact of the Chinese Western Development Strategy (WDS) implemented in 2001 on regional innovation. The results showed that the WDS has not effectively promoted regional innovation, and this effect has strengthened annually since the second year. Regions with higher regional innovation suffer more from the policy inhibiting effect, which indicates that the policies of the WDS have not been fully utilized. A heterogeneity analysis demonstrated varying effects on cities with different administrative levels. Provincial capital cities have an absorbing effect on non-provincial capital cities. The mechanism analysis shows that the WDS has aggravated local fiscal imbalances and fiscal preference in valuing investments and neglecting people’s livelihoods. Both these factors appear as chain mediation effects. Therefore, high-quality development in the western regions requires the strengthening of the regional innovation environment and a suitable institutional path to effectively enhance regional innovation capabilities.
Journal: Applied Economics
Pages: 999-1011
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095344
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095344
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# input file: RAEC_A_2095341_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Munseob Lee
Author-X-Name-First: Munseob
Author-X-Name-Last: Lee
Author-Name: Cheikh Anta Gueye
Author-X-Name-First: Cheikh Anta
Author-X-Name-Last: Gueye
Title: Do resource windfalls improve standard of living in sub-Saharan African countries?
Abstract:
We examine impact of resource windfall on standard of living. We introduce annual welfare measure that combines income, inequality, and health, covering 130 countries for 45 years. We investigate the effect of resource windfalls on welfare in three groups: (i) a sample of 130 countries, (ii) 28 sub-Saharan African (SSA) countries, and (iii) 9 fragile SSA countries. We find that the short-run and long-run effect of resource windfalls are welfare enhancing in the 130-country sample. However, the effect size is small in SSA countries, and is insignificant in fragile SSA countries, which emphasizes importance of governance in natural resource management.
Journal: Applied Economics
Pages: 944-962
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095341
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095341
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# input file: RAEC_A_2095342_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhenhua Liu
Author-X-Name-First: Zhenhua
Author-X-Name-Last: Liu
Author-Name: Tingting Zhu
Author-X-Name-First: Tingting
Author-X-Name-Last: Zhu
Author-Name: Zhaoping Duan
Author-X-Name-First: Zhaoping
Author-X-Name-Last: Duan
Author-Name: Shanqi Xuan
Author-X-Name-First: Shanqi
Author-X-Name-Last: Xuan
Author-Name: Zhihua Ding
Author-X-Name-First: Zhihua
Author-X-Name-Last: Ding
Author-Name: Shan Wu
Author-X-Name-First: Shan
Author-X-Name-Last: Wu
Title: Time-varying impacts of oil price shocks on China’s stock market under economic policy uncertainty
Abstract:
The role of economic policy uncertainty in the risk transmission between crude oil and stock market cannot be ignored. However, it is unclear whether economic policy uncertainty always amplifies the impact of oil price shocks on stock market over time. This study employs the time-varying parameter structural vector autoregression with stochastic volatility (TVP-SVAR-SV) model to examine the dynamic relationship among different types of oil price shocks, economic policy uncertainty, and China’s stock market returns at the aggregate and industry levels. The empirical results are as follows: First, different types of oil price shocks and economic policy uncertainty have significant time-varying impacts on stock market returns, which mainly occur in the short term. During periods of increased economic policy uncertainty, the stock market is more sensitive to oil price shocks. Second, economic policy uncertainty provides a transmission channel for the propagation between oil price shocks and stock markets, but how does economic policy uncertainty connect oil-stock nexus depends on the origins of oil price shocks. Third, the response patterns of stock market to oil price shocks and economic policy uncertainty are heterogeneous in different industries. Our results provide important implications for policymakers and investors.
Journal: Applied Economics
Pages: 963-989
Issue: 9
Volume: 55
Year: 2023
Month: 02
X-DOI: 10.1080/00036846.2022.2095342
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2095342
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Handle: RePEc:taf:applec:v:55:y:2023:i:9:p:963-989
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# input file: RAEC_A_2097181_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Katarzyna Anna Nawrot
Author-X-Name-First: Katarzyna Anna
Author-X-Name-Last: Nawrot
Title: Assessing the effects of trade regionalism in East Asia – evidence from augmented gravity models
Abstract:
This paper investigates the effects of trade regionalism in East Asia from 1995 to 2018, by applying a series of gravity models. An initial, basic gravity model is repeatedly augmented to account for a range of economic, geographical, cultural, and above all institutional factors representing free trade agreements in effect. Unlike previous studies, this investigation distinguishes between the bilateral and multilateral measures of regional trading arrangements. Two interesting findings are reported. First, the results confirm the impact of trade regionalism on the export flows between the economies of East Asia in the period under study. Second, the effects of multilateral trading agreements vary greatly depending on the agreement and on the particular country’s range of influence, in particular cases showing no sufficient economic benefits. Overall, the results point to the complementarity of bilateral and multilateral trading arrangements in the region and to the emergence of a certain distinctive model of cooperation and integration in East Asia – which has been underpinned during the COVID-19 pandemic by the conclusion of the Regional Comprehensive Economic Partnership (RCEP), and which will be further verified in the post-COVID character of global trade and regional trading arrangements.
Journal: Applied Economics
Pages: 1285-1297
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097181
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097181
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# input file: RAEC_A_2097184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kichun Kang
Author-X-Name-First: Kichun
Author-X-Name-Last: Kang
Title: Heterogeneous welfare gains from import variety across regions: evidence from South Korea
Abstract:
Globalization has differential impacts on trade patterns and welfare gains across regions within a country. Using panel data on 16 South Korean regions over the period 2000–2015, this study shows that new import varieties led to lower regional import prices, which in turn yielded positive welfare gains. However, both the uneven growth of import varieties and different degrees of product differentiation led to heterogeneous effects on import prices and welfare gains across regions. Regional differences in import prices and welfare gains are impacted more by variety growth than by product differentiation.
Journal: Applied Economics
Pages: 1328-1340
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097184
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097184
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Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1328-1340
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# input file: RAEC_A_2097185_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tian-Tian Zhu
Author-X-Name-First: Tian-Tian
Author-X-Name-Last: Zhu
Author-Name: Ya-Hua Lu
Author-X-Name-First: Ya-Hua
Author-X-Name-Last: Lu
Author-Name: Yue-Jun Zhang
Author-X-Name-First: Yue-Jun
Author-X-Name-Last: Zhang
Title: Evaluating the scientific and technological innovation efficiency of universities in China: evidence from the global Malmquist–Luenberger index model
Abstract:
The evaluation of the scientific and technological (S&T) innovation efficiency of universities is important for the ‘double first-class’ construction in China. However, related research often only considers desirable outputs while ignoring undesirable ones, which tends to produce biased evaluation results. For this reason, this study takes the ratio of unemployed graduates as undesirable output, and uses the global Malmquist – Luenberger index method to evaluate the S&T innovation efficiency of 31 relevant universities in China during 2013–2017, then develops a panel Tobit model to analyse its influencing factors. The results reveal that: first, during the sample period, the S&T innovation efficiency of those universities improved overall, and technical progress was the main driver. Second, excluding undesirable output will result in an overestimate of the S&T innovation efficiency of universities. Third, the S&T innovation efficiency of universities features regional distribution, with high efficiency in the west and low efficiency in the east. Moreover, different regions have different drivers for the improvement of S&T innovation efficiency of universities, with technical progress for the east and technical efficiency changes for the central and west. Finally, the ‘double first-class’ construction proposal in China has significantly promoted the improvement of S&T innovation efficiency in universities.
Journal: Applied Economics
Pages: 1341-1355
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097185
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097185
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Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1341-1355
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# input file: RAEC_A_2097186_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yiming Chang
Author-X-Name-First: Yiming
Author-X-Name-Last: Chang
Author-Name: Xiangyuan Yu
Author-X-Name-First: Xiangyuan
Author-X-Name-Last: Yu
Author-Name: Wei Shan
Author-X-Name-First: Wei
Author-X-Name-Last: Shan
Author-Name: Fang Wang
Author-X-Name-First: Fang
Author-X-Name-Last: Wang
Title: Do bank risk-taking, deposit insurance and financial heterogeneity change periodically with the financial crisis?
Abstract:
Financial heterogeneity generally refers to differences in the financial environment, which will affect the efficiency and risk of a country’s financial market. This paper describes financial heterogeneity from three aspects: the difference of financial market structure, the difference of financial intervention level and the degree of financial openness, and studies the relationship between financial heterogeneity, deposit insurance coverage and bank risk-taking before and after the 2008 financial crisis, using panel data of 98 market countries. The results show that the nonlinear relationship between bank risk-taking and deposit insurance coverage. This research finds that estimated coefficients’ sign and significance of some variables, such as household saving rate, bank deposit loan spread, their interactions with deposit insurance coverage, and bank credit to bank deposits show cyclical characteristics cross periods.
Journal: Applied Economics
Pages: 1356-1370
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097186
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097186
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Handle: RePEc:taf:applec:v:55:y:2023:i:12:p:1356-1370
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# input file: RAEC_A_2097182_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yun-Peng Chu
Author-X-Name-First: Yun-Peng
Author-X-Name-Last: Chu
Author-Name: Yi-Pey Ou
Author-X-Name-First: Yi-Pey
Author-X-Name-Last: Ou
Title: Has the rise of China’s domestic supply chain contributed to its GDP increases?
Abstract:
This paper applies a structural decomposition of the input-output tables to investigate the sources of changes in the GDP of China, paying special attention to the import substitution of intermediate inputs. It is argued that the specific way GDP is decomposed in this paper sheds more light on the origin of growth than does the conventional decomposition of GDP by its final demand components. The results of the decomposition show that import substitution of intermediate products, which is an act of de-globalization of trade and a model of industrialization some Asian newly industrializing economies followed decades earlier, also became important in China, but only belatedly: in 2011–2012 and 2013–2014. The phenomenon is found to be significant in the manufacture of (i) computer, electronic and optical products, (ii) chemicals and chemical products, (iii) coke and refined petroleum products, and (iv) basic metals.
Journal: Applied Economics
Pages: 1298-1311
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097182
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097182
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# input file: RAEC_A_2097187_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Tatiana Sokolova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Sokolova
Title: Assessing the impact of media sentiment on the returns of sukuks during the Covid-19 crisis
Abstract:
The wavelet approach covering simultaneously the time and frequency domains is employed to study the impact of the Covid-19 coverage in mass media on the performance of the Dow Jones Sukuk investment grade total return indices. The overall coherence level for the media-coverage – sukuk pairs is found to increase with the investment horizon. Multiple time-frequency regions with low level of coherence, observable along the Covid-19 systemic crisis, imply attractive diversification attributes of investing in Islamic fixed-income securities especially in times of financial stress and turmoil. We investigate coherence and phase difference patterns, which differ for distinct maturity buckets of the Sukuk indices, further highlighting their potentiality for the downside risk hedge, workable under economic and financial distress.
The influence of the Covid-19 coverage in social media on DJ sukuk indices is investigated.The wavelet approach is employed to study the interrelations via coherence/phase-difference metrics.Coherence level varies along the time and frequency scales, increasing with the investment horizon.We observe differences in the coherence patterns per maturity bucket of Shariah-compliant securities.Hedging attractiveness is less pronounced in the sukuks of 1 to 3 years of residual maturity.The findings are potentially insightful for engineering hedge strategies, based in sukuks.Sukuks possess valuable hedging attributes, non-vanishing during systemic crisis events.
Journal: Applied Economics
Pages: 1371-1387
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097187
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097187
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# input file: RAEC_A_2097183_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sangram Keshari Jena
Author-X-Name-First: Sangram Keshari
Author-X-Name-Last: Jena
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: David Roubaud
Author-X-Name-First: David
Author-X-Name-Last: Roubaud
Title: Integration between emerging market equity and global markets; is it fundamental or noisy? Evidence from wavelet denoised volatility spillover analysis in time and frequency domain
Abstract:
The study investigates the integration between the five largest emerging stock markets, Morgan Stanley Capital Emerging Market Index, and global financial markets like the US S&P 500, Brent Crude Oil and Dollar Index based on wavelet denoised volatility spillover in time and frequency domain using forecasted error variance decomposition framework. It is found that the impact of noise on the connectedness is more pronounced in the short run and declines in longer term. Further, long-term connectedness which is much higher than that of short-term connectedness confirms the existence of fundamental (noisy) concernedness in the long (short) term. The impact of noise both varies by time and frequency. The policy implications are discussed.
Journal: Applied Economics
Pages: 1312-1327
Issue: 12
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097183
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097183
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# input file: RAEC_A_2097188_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Philemon Kwame Opoku
Author-X-Name-First: Philemon Kwame
Author-X-Name-Last: Opoku
Title: The nexus between fiscal and current account imbalances in OECD economies
Abstract:
We re-examine the nexus between fiscal balances and current account balances for 18 OECD countries from 1995Q1 to 2018Q1 using panel cointegration and panel vector autoregressive (VAR). The findings confirm a long-run relationship between the fiscal balance and the current account balance. Our results indicate that strengthening the fiscal balance by one percentage point of GDP improves the current account balance by about 0.1–0.3 percentage points of GDP. On the other hand, an increase in real government consumption generally worsens the current account balance. The impact of the real effective exchange rate is not statistically significant.
Journal: Applied Economics
Pages: 1389-1406
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097188
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097188
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Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1389-1406
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# input file: RAEC_A_2097192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Author-Name: Anna Samarina
Author-X-Name-First: Anna
Author-X-Name-Last: Samarina
Title: Drivers of trust in the ECB during the pandemic
Abstract:
Trust in the European Central Bank (ECB) is vital. However, little is known about trust in the ECB during the COVID-19 pandemic. We use the rich pilot microdata from the ECB Consumer Expectations Survey during 2020–2021 on six key euro area countries to shed light on trust in the ECB during the pandemic. Our findings suggest that there is ample room to improve consumers’ trust in the ECB. Personal COVID-19 experiences play a role: respondents who reduced the number of hours worked due to COVID-19 have lower trust in the ECB than those with unchanged working hours. Trust in the ECB varies within countries. It is highest among males and people with a good financial situation. It increases with financial knowledge, education, income, and wealth.
Journal: Applied Economics
Pages: 1454-1476
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097192
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097192
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# input file: RAEC_A_2097194_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Crina Anina Bejan
Author-X-Name-First: Crina Anina
Author-X-Name-Last: Bejan
Author-Name: Dominic Bucerzan
Author-X-Name-First: Dominic
Author-X-Name-Last: Bucerzan
Author-Name: Mihaela Daciana Crăciun
Author-X-Name-First: Mihaela Daciana
Author-X-Name-Last: Crăciun
Title: Bitcoin price evolution versus energy consumption; trend analysis
Abstract:
Digital technology developments shape the behaviour, performances, standards of society, organizations and individuals imposing new ways of payments and new forms of money. In this environment in 2008 was developed a new type of currency, namely Bitcoin. Cryptocurrency, as this new form of money has been generically called, puts pressure on the traditional concept of money. Today, the economic value of cryptocurrencies is attested by their circulation and acceptance by user communities for trade. However, establishing this value raises debates in the literature. The research from this paper investigates and analyses if there is a strong enough connectedness between Bitcoin price evolution and energy consumption tendency (for mining), to influence Bitcoin value. Public data from January 2014 to July 2021 is used. An Artificial Neural Network (ANN) was used to study and predict the tendency of Bitcoin price and energy consumption. A comparison between the forecasting trend and the real trend (the evolution of energy consumption and Bitcoin price) was made. The conducted research starts with a quantitative one and ends with a qualitative one (trends). The obtained results show that qualitatively, there is a good correlation between monthly average values of BTC prices and electricity consumption for mining.
Journal: Applied Economics
Pages: 1497-1511
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097194
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097194
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# input file: RAEC_A_2097190_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haoliang Zhu
Author-X-Name-First: Haoliang
Author-X-Name-Last: Zhu
Title: Global value chains, trade liberalization, and productivity: a stochastic frontier analysis of Chinese manufacturing firms
Abstract:
This article estimates the total factor productivity (TFP) growth of Chinese manufacturing firms and quantifies how international sourcing and trade liberalization affect TFP growth. To this end, we estimate stochastic frontier production that decomposes TFP growth into technical changes, returns to scale, and technical efficiency changes. Furthermore, we consider two channels through which external factors affect TFP growth: technical change and technical efficiency change components. We measure international sourcing and trade liberalization by foreign value-added shares and input tariffs, respectively. Several novel findings emerge. First, international sourcing and import tariff reduction positively impact TFP growth by improving technical changes and technical efficiency. Second, international sourcing has a negative effect on the technical changes of processing importers, while it has positive effects on the technical change and technical efficiency change of ordinary importers. Third, input tariff reduction has a substantial and positive impact on the technical efficiency change of processing importers and the technical change of ordinary importers.
Journal: Applied Economics
Pages: 1422-1435
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097190
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097190
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Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1422-1435
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# input file: RAEC_A_2097191_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoling Mei
Author-X-Name-First: Xiaoling
Author-X-Name-Last: Mei
Author-Name: Huanjun Zhu
Author-X-Name-First: Huanjun
Author-X-Name-Last: Zhu
Author-Name: Chongzhu Chen
Author-X-Name-First: Chongzhu
Author-X-Name-Last: Chen
Title: Mean-variance portfolio selection with estimation risk and transaction costs
Abstract:
There are many approaches that have been proposed to improve the empirical performance of the Markowitz mean-variance model. Designed to mitigate the impact of parameter uncertainty and estimation error, these approaches have delivered substantially better out-of-sample performance. In this paper, we consider the portfolio optimization problem for a single-period investor facing different types of transaction costs. By reformulating the rebalancing problem into a linear regression framework, we show analytically that considering different transaction costs is equivalent to imposing additional constraints on the portfolio weights, thus providing desired properties such as sparsity and stability in the trading strategy.
Journal: Applied Economics
Pages: 1436-1453
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097191
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097191
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# input file: RAEC_A_2097189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Elena Kotyrlo
Author-X-Name-First: Elena
Author-X-Name-Last: Kotyrlo
Title: Back to parents: earnings of young adults and informal care
Abstract:
Return migrants are often considered to be disadvantaged in terms of earnings. However, family needs might affect an individual’s migration decision and allocation of his (her) time between formal employment and informal care. The generalized Roy model employed to account for self-selection in migration decisions shows that the losses in earnings of return migrants are overestimated for female young adults when family characteristics, such as the presence of children or parents in need of care, are not accounted for. The study is based on age- and gender-specific samples of individuals born in 1974 and followed between the ages of 25 and 32 years drawn from Swedish longitudinal data. The results suggest that female internal return migrants rely on grandparenting to reconcile their family and working life. In particular, mothers of children under eight years old earn more when they reside close to their parents. The negative self-selection of male return migrants remains after controlling for family characteristics. This likely relates to differences in the labour supply as returns on education do not differ by residential location choice. The estimates do not demonstrate any link between potential informal elder care and a change in the earnings of young adults.
Journal: Applied Economics
Pages: 1407-1421
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097189
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097189
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# input file: RAEC_A_2097193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jose E. Gomez-Gonzalez
Author-X-Name-First: Jose E.
Author-X-Name-Last: Gomez-Gonzalez
Author-Name: Jorge M. Uribe
Author-X-Name-First: Jorge M.
Author-X-Name-Last: Uribe
Author-Name: Oscar M. Valencia
Author-X-Name-First: Oscar M.
Author-X-Name-Last: Valencia
Title: Risk spillovers between global corporations and Latin American sovereigns: global factors matter
Abstract:
We study volatility spillovers between the corporate sector’s and Latin American countries’ CDS. Daily data from 14 October 2006 to 23 August 2021 are employed. Spillovers are computed both for the raw data and for filtered series, which factor out the effect of global common factors on the various CDS series. Results indicate that most spillovers occur within groups. However, considerable spillovers are also registered from LAC sovereigns to corporations and vice versa. Interesting differences are encountered between filtered and unfiltered data. Specifically, spillovers from countries to corporations are overestimated (in about 4.3% points) and spillovers from corporations to sovereigns are underestimated (in about 5.8% points) when unfiltered data is used. This result calls for a revision of results obtained from studies that do not consider the role of global common factors on system spillovers. Like in most related studies, spillovers show considerable time-variation, being larger during times of financial or economic distress. When looking at total system spillovers over time, those corresponding to unfiltered series are always larger than those corresponding to filtered series. The difference between the two time-series is largest in times of distress, indicating that global factors play a major role in times of crises.
Journal: Applied Economics
Pages: 1477-1496
Issue: 13
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097193
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097193
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# input file: RAEC_A_2098241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Israel Escudero-Castillo
Author-X-Name-First: Israel
Author-X-Name-Last: Escudero-Castillo
Author-Name: Fco. Javier Mato Díaz
Author-X-Name-First: Fco. Javier
Author-X-Name-Last: Mato Díaz
Author-Name: Ana Rodriguez-Alvarez
Author-X-Name-First: Ana
Author-X-Name-Last: Rodriguez-Alvarez
Title: Effects of precarious work on mental health: evidence from Spain
Abstract:
Given that a relationship has been established between employment status and psychological well-being, the deepening segmentation of the Spanish labour market may be putting the mental health of part of the population at risk. However, the relationship between work and well-being could be influenced by unobservable subjective characteristics and, consequently, two people with the same job characteristics could be affected differently by precariousness. This research tackles the problem of the unobserved heterogeneity resulting from subjective variables related to work satisfaction. A finite mixed model is applied to analyse, firstly, how jobs characterized by greater instability may affect well-being and, secondly, to study how the way in which well-being is affected could depend on how the person evaluates their job satisfaction. Data from the National Health Survey of Spain have been used to perform the analysis. We conclude that, when compared to short-term temporary contracts, self-employed and atypical situations, the stability of permanent work contracts provides greater well-being if some previous conditions of job satisfaction are met. When these conditions are not met, the protective factor provided by permanent contracts is somehow diluted, and only tenured civil servants show advantages vis-à-vis the rest of work situations.
Journal: Applied Economics
Pages: 1603-1620
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2098241
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2098241
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Handle: RePEc:taf:applec:v:55:y:2023:i:14:p:1603-1620
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# input file: RAEC_A_2098240_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xuhui Peng
Author-X-Name-First: Xuhui
Author-X-Name-Last: Peng
Author-Name: Yi-Chen Lan
Author-X-Name-First: Yi-Chen
Author-X-Name-Last: Lan
Author-Name: Jingduan Li
Author-X-Name-First: Jingduan
Author-X-Name-Last: Li
Author-Name: Hanlu Fan
Author-X-Name-First: Hanlu
Author-X-Name-Last: Fan
Title: Board gender diversity, national culture, and water disclosure of multinational corporations
Abstract:
Academic attention on corporate water disclosure and the role of board gender diversity (BGD) in corporate environmental responsibility has increased dramatically. However, the study of the relationship between BGD and corporate water disclosure is lagging, particularly in the influence of national culture on the relation. Therefore, this study investigates the water disclosure of 150 MNCs from China, Japan, the U.K. and the U.S. using content analysis, theoretically discusses and empirically tests the relationship between BGD and MNCs’ water disclosure, and the moderating effects of national culture. The results indicate that (1) BGD positively impacts MNCs’ water disclosure, and (2) the cultural constructs of masculinity and uncertainty avoidance negatively moderate this relationship. These results reveal that female board members’ moral characteristics caused by gender differences are the key to promoting the board’s abilities of stakeholders’ water issue detection. This advantage of female board members could be enhanced or weakened in different national cultures. Our study closes a research gap, strengthens our understanding of the role of BGD in promoting the board’s water-related strategic decision-making, and extends the application of the national cultural dimension in interdisciplinary research in management and social science fields.
Journal: Applied Economics
Pages: 1581-1602
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2098240
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2098240
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# input file: RAEC_A_2097635_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Saejoon Kim
Author-X-Name-First: Saejoon
Author-X-Name-Last: Kim
Title: Factor investing: a unified view
Abstract:
A unified view of factor investing is presented. By examining the levels of exposure to a set of factors collectively, we construct enhanced factor portfolios from conventional single-factor portfolios that substantially increase factor risk premia consistently for nearly five decades in the US equity data. Detailed comparison between these and multifactor portfolios is conducted, and we find that a form of the latter delivers superior return performance. In particular, we present the outperformance of the signal-blended multifactor portfolio for various return measures over all factor portfolios considered at a statistical significance level of 1%.
Journal: Applied Economics
Pages: 1567-1580
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097635
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097635
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# input file: RAEC_A_2098242_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Theodoros Skevas
Author-X-Name-First: Theodoros
Author-X-Name-Last: Skevas
Author-Name: Mykel R. Taylor
Author-X-Name-First: Mykel R.
Author-X-Name-Last: Taylor
Author-Name: Allen M. Featherstone
Author-X-Name-First: Allen M.
Author-X-Name-Last: Featherstone
Title: How different types of government payments and the elimination of direct payments affect farm productivity? Evidence from Kansas crop farms
Abstract:
The relationship between total factor productivity (TFP) and different types of government payments is examined using data on Kansas crop farms over the period 2009–2018. Special attention is given to the effect on productivity from the elimination of direct payments in the 2014 Farm Bill. Farm-level TFP is estimated using a variation of the traditional proxy variable approach, assuming the evolution of productivity is not exogenous, but can be influenced by government payments. Results show that alternative types of government payments affect TFP differently. Direct payments were found to have a positive effect on TFP, whereas risk management payments, which replaced direct payments starting in 2015, did not affect TFP significantly. Regarding other types of government payments, only conservation reserve program and state government payments were found to affect TFP (positively and) significantly, but the productivity effect was significantly lower than that of direct payments. Results further show that restricting productivity to be entirely exogenous understates the actual productivity of the sample farms by an average of 8%, implying government payments matter and impact farm productivity.
Journal: Applied Economics
Pages: 1621-1635
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2098242
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2098242
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# input file: RAEC_A_2097633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hakjun Lee
Author-X-Name-First: Hakjun
Author-X-Name-Last: Lee
Author-Name: Shik Heo
Author-X-Name-First: Shik
Author-X-Name-Last: Heo
Title: Does cultural education contribute to higher consumption of the arts? Evidence from South Korea
Abstract:
The purpose of this study is to examine the effects of cultural capital on arts consumption. We divide cultural capital into five types – arts education of infancy and childhood, adolescence and adulthood, arts-related volunteer work, and arts-related club – and focused on active and passive acquisition of such capital. We conduct an empirical analysis considering that the dependent variable is zero-inflated. Specifically, we conduct zero-inflated negative binomial regression to analyse the causal effect of cultural capital on arts consumption. In addition, Oaxaca decomposition with zero-inflated negative binomial regression is performed to compare the effectiveness of cultural capital. Our results show that consumption of cultural capital increases consumption of the arts. In particular, the effect of arts education was the highest in adulthood, indicating that voluntary acquisition is effective and the benefits from arts education are durable. Our research could provide insights for government organizations engaged in promotion of arts and inform policymaking.
Journal: Applied Economics
Pages: 1534-1545
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097633
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097633
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# input file: RAEC_A_2097632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anna Gudrun Ragnarsdottir
Author-X-Name-First: Anna Gudrun
Author-X-Name-Last: Ragnarsdottir
Author-Name: Thorhildur Olafsdottir
Author-X-Name-First: Thorhildur
Author-X-Name-Last: Olafsdottir
Author-Name: Paul McNamee
Author-X-Name-First: Paul
Author-X-Name-Last: McNamee
Author-Name: Tinna Laufey Ásgeirsdóttir
Author-X-Name-First: Tinna Laufey
Author-X-Name-Last: Ásgeirsdóttir
Title: The individual private cost of problematic alcohol use: a compensating income variation approach
Abstract:
While the social cost of problematic alcohol use has been examined, limited information exists on the private cost incurred by consumers. Using Icelandic panel data and the compensating income variation (CIV) method we estimate this individual private cost. We examine results using different measures of problematic alcohol use, two non-linear functional forms for income, and two utility proxies. We estimate the yearly individual cost, or CIV, to be 4–62 thousand USD. These estimates are considerably higher if not adjusted for income endogeneity. Results suggest that the CIV method is highly sensitive to model specifications in two areas: (i) The modelling of income; log-transformation contrasted with a piecewise-linear form shows that high-income groups affect full sample CIVs substantially, highlighting differences between mean and median value-estimates. This raises ethical questions on the trade-off between utilitarian policies based on means and largely driven by high-income groups, versus policies guided by median values that benefit most individuals. (ii) The choice of utility proxy; the CIV using happiness is substantially higher than that obtained using life satisfaction. This highlights the need for policy makers to consider whether their objectives should focus on cognitive measures of subjective well-being or affective measures.
Journal: Applied Economics
Pages: 1513-1533
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097632
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097632
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# input file: RAEC_A_2097634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shunwei Zhu
Author-X-Name-First: Shunwei
Author-X-Name-Last: Zhu
Author-Name: Hailong Liu
Author-X-Name-First: Hailong
Author-X-Name-Last: Liu
Author-Name: Thomas Boryniec
Author-X-Name-First: Thomas
Author-X-Name-Last: Boryniec
Title: Long-term reversal and value effects: the role of liquidity risk
Abstract:
This paper demonstrates that liquidity risk helps explain the return patterns of stocks with high book-to-market ratios and low intangible returns. We document empirical evidence that (1) liquidity shocks, the unexpected variation in liquidity factors that are orthogonal to the firm’s past accounting performance, predict stock returns, (2) stocks with higher book-to-market ratios or lower intangible returns have higher exposure to aggregate capital constraint measures (i.e. these stocks possess higher liquidity risk) and (3) the returns of long-term contrarian strategies based on liquidity shocks, book-to-market ratios and intangible returns are highly correlated and serve as proxies for returns from liquidity provision. Moreover, liquidity-providing returns are stronger in declining markets as well as when the market volatility is high, indicating that liquidity providers are capital-constrained in providing liquidity under such conditions.
Journal: Applied Economics
Pages: 1546-1566
Issue: 14
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2097634
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2097634
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# input file: RAEC_A_2099518_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ling Dai
Author-X-Name-First: Ling
Author-X-Name-Last: Dai
Author-Name: Zuomin Zhang
Author-X-Name-First: Zuomin
Author-X-Name-Last: Zhang
Author-Name: Likui Lin
Author-X-Name-First: Likui
Author-X-Name-Last: Lin
Title: Can government investment expansion benefit everyone: a study with state-owned enterprises in the Chinese context
Abstract:
The main difference between China and other major economies is the presence of a large number of state-owned enterprises. Focusing on the Chinese context, we divide firms into state-owned and private enterprises, and households into working and capitalist class; thereafter, we simulate the effects of government investment expansion on income distribution under different financing instruments. We found that when financed by corporate income tax or value-added tax, government investment expansion makes the working class in both types of enterprises better off, but the capitalist class worse off; however, when financed by labour income tax, government investment expansion yields the opposite result. When the expansion is financed by government debt, the real wealth of the working class in state-owned enterprises and the capitalist class increases, but that of the working class in private enterprises decreases. The difference in income distribution outcomes between the working class and capitalist class is due to the differing composition of their wealth, and the difference in income distribution outcomes among working class is because the enterprises for which they work perform differently in undertaking government investment projects and obtaining loans from the financial market.
Journal: Applied Economics
Pages: 1663-1681
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099518
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099518
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# input file: RAEC_A_2099524_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fangbin Qiao
Author-X-Name-First: Fangbin
Author-X-Name-Last: Qiao
Title: The impact of mechanization on crop production in China
Abstract:
The rapid development of mechanization has been well reported, but its impact on China’s agricultural production remains unclear. This study first uses a theoretical model to analyse the impact of mechanization on sown areas of different crops. The results show that mechanization has a positive impact on grain crops and a negative impact on non-grain crops. Then using nationally representative provincial-level panel data, the empirical analyses confirm these results. Thus, the sown areas of cotton, oil and sugar crops will be reduced by more than 20% within five years. Consequently, China is expected to depend on international markets to meet the domestic demand for cotton, oil and sugar in the future. Even though mechanization has a positive impact on the sown areas of grain crops, a reduction in the diversity of grain production poses a new threat to the stability of China’s grain production and food security.
Journal: Applied Economics
Pages: 1728-1741
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099524
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099524
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# input file: RAEC_A_2099521_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Patricia Moreno-Mencía
Author-X-Name-First: Patricia
Author-X-Name-Last: Moreno-Mencía
Author-Name: David Cantarero-Prieto
Author-X-Name-First: David
Author-X-Name-Last: Cantarero-Prieto
Author-Name: Juan Rodriguez-Poo
Author-X-Name-First: Juan
Author-X-Name-Last: Rodriguez-Poo
Title: Semiparametric estimation of a sample selection model with a binary endogenous regressor: the effect of chronicity in labour supply
Abstract:
The aim of this paper is to investigate the effect of chronicity in labour supply and the participation equation in a flexible framework. We analyse a semiparametric model for data including problems of sample selection and endogeneity, because a regressor is correlated with the disturbance term. One approach is to specify a simultaneous equation model where a dummy endogenous variable accounting for chronicity is included in the structural and selection equation. We propose a consistent estimator of the structural parameters robust to misspecification. The endogeneity and the selection are assumed to be nonparametric and the conditional distribution of the errors is left unspecified. Using a control function approach, the resulting estimator is obtained through a new pairwise differencing transformation. In addition to its empirical performance, the asymptotic properties are established. Our empirical findings confirm the idea that having a chronic illness has a negative effect on income, accounting for an approximately $$32\% $$32% decrease in expected income, which is close to the finding of Currie and Madrian (1999).
Journal: Applied Economics
Pages: 1682-1699
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099521
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099521
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# input file: RAEC_A_2098243_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Danny Contractor
Author-X-Name-First: Danny
Author-X-Name-Last: Contractor
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Indrit Hoxha
Author-X-Name-First: Indrit
Author-X-Name-Last: Hoxha
Title: Market reaction to macroeconomic anouncements: green vs conventional bonds
Abstract:
There has been an increased interest in literature to examine the risk and returns between green and conventional bonds during the last decade. However, the existing literature is silent regarding investigating green bonds and their reactions to regional and global shocks. We attempt to close this gap by gathering green and conventional bonds data issued by the same firms. Using data from 262 firms that issue both sets of bonds and trade in the same market, we are able to control/eliminate for firm-specific factors that can impact the bond spreads. Upon introducing US and EU macroeconomic announcements and economic uncertainty, we find that the green bonds are more resilient from specific shocks, when compared to conventional bonds. We further expand our study to systematically assess the impact of the Covid-19 pandemic on both bonds. Our comprehensive findings suggest an increase in green bonds’ uptake post-Covid-19 pandemic, and its significant evolvement compared to pre-Covid-19 proves green bonds popularity. Our result shows greater resilience of green bonds from specific Covid-19 shocks and uncertainties.
Journal: Applied Economics
Pages: 1637-1662
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2098243
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2098243
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# input file: RAEC_A_2101611_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rupamanjari Sinha Ray
Author-X-Name-First: Rupamanjari
Author-X-Name-Last: Sinha Ray
Author-Name: Sandeep Goel
Author-X-Name-First: Sandeep
Author-X-Name-Last: Goel
Title: Impact of ESG score on financial performance of Indian firms: static and dynamic panel regression analyses
Abstract:
The study attempts to empirically investigate the impact of ESG score on the financial variables that may affect the performance of firms in the Indian context; SEBI’s recent mandate on ESG reporting by the listed entities being the point of departure for the present discourse. A representative sample of 48 Indian firms having ESG scores under BSE-100 index is used in the analysis. The study period comprises the years 2011–2019. Static and dynamic panel regression analyses are conducted. The financial performance variables incorporated in this paper include ROA, ROE, firm size, market capitalization, PBDIT, Tobin’s Q and share price. It is demonstrated that ESG score influences these variables, however with time lags. The distinctive contribution of the current endeavour lies in establishing a long-term positive association between ESG disclosure and annual average share price for the listed firms in a developing economy like India. The results are implicative of the fact that ESG score is an emerging indicator for conceiving future financial performance and risk mitigation strategies, and therefore, of considerable importance from policy perspective.
Journal: Applied Economics
Pages: 1742-1755
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2101611
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101611
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# input file: RAEC_A_2099523_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mauro Caselli
Author-X-Name-First: Mauro
Author-X-Name-Last: Caselli
Author-Name: Jasmine Mondolo
Author-X-Name-First: Jasmine
Author-X-Name-Last: Mondolo
Author-Name: Stefano Schiavo
Author-X-Name-First: Stefano
Author-X-Name-Last: Schiavo
Title: Labour market power and the quest for an optimal minimum wage: evidence from Italy
Abstract:
This study investigates the recent trends in labour market power in Italy and assesses the impact of a potential minimum wage using a large sample of manufacturing firms. We show that, despite an average shift of labour market power from companies to workers, monopsony power is still widespread, especially in some sectors and regions. The introduction of a minimum wage would be beneficial to workers and the economy as it reduces the monopsony power of highly productive firms paying low wages; however, it may also have a negative impact, since firms with low wages and low labour productivity may react by reducing the number of their employees or even by exiting the market. Finally, we find that an optimal minimum wage, which minimizes the negative effect and maximizes the positive effect for the economy, ranges between 8.25 and 9.65 euro per hour.
Journal: Applied Economics
Pages: 1713-1727
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099523
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099523
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# input file: RAEC_A_2099522_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paul Lombardi
Author-X-Name-First: Paul
Author-X-Name-Last: Lombardi
Author-Name: Amer Mriziq
Author-X-Name-First: Amer
Author-X-Name-Last: Mriziq
Title: Saving lives one bale at a time: cotton production’s connection to lynchings in the U.S. South during the early Twentieth Century
Abstract:
The extralegal lynching of innocent individuals from discriminated groups remains a dark, lasting mark on the United States’ history. Following the conclusion of the Civil War, former slaves and their descendants were frequent targets for this form of violence. A significant existing literature finds various contributing factors to the pattern of violence. However, the current paper is the first to document a relationship between the weather and the lynching of African Americans in the U.S. South during the early twentieth century. Within affected communities, we find heavy May rains reduced cotton yields which raises the probability of a lynching during the subsequent year.
Journal: Applied Economics
Pages: 1700-1712
Issue: 15
Volume: 55
Year: 2023
Month: 03
X-DOI: 10.1080/00036846.2022.2099522
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099522
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# input file: RAEC_A_2099525_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paula Pereda
Author-X-Name-First: Paula
Author-X-Name-Last: Pereda
Author-Name: Maria Dolores Montoya Diaz
Author-X-Name-First: Maria Dolores
Author-X-Name-Last: Montoya Diaz
Author-Name: Fabiana Rocha
Author-X-Name-First: Fabiana
Author-X-Name-Last: Rocha
Author-Name: Liz Matsunaga
Author-X-Name-First: Liz
Author-X-Name-Last: Matsunaga
Author-Name: Bruna Pugialli Borges
Author-X-Name-First: Bruna Pugialli
Author-X-Name-Last: Borges
Author-Name: Jesus Mena-Chalco
Author-X-Name-First: Jesus
Author-X-Name-Last: Mena-Chalco
Author-Name: Renata Narita
Author-X-Name-First: Renata
Author-X-Name-Last: Narita
Author-Name: Clara Brenck
Author-X-Name-First: Clara
Author-X-Name-Last: Brenck
Title: Are women less persistent? Evidence from submissions to a nationwide meeting of economics
Abstract:
Female under-representation in high-profile career positions has relevant impacts on firms’ outcomes, research topics, and public policies. In the academic profession, women’s participation decreases as they evolve in their careers. To understand the lack of women in economics in Brazilian academia, we investigate the decision to submit papers to the largest conference in the country (Brazilian Meeting of Economics, or ANPEC Meetings), an important achievement in the profession. We explore a novel panel dataset of researchers and match them with web-scraped data of their résumés to test gender differences in the probability of submitting an article one year after having a paper (same or new) rejected in the previous year. Our findings suggest that women desist 2.9% points more than men when facing rejection. We also find evidence that younger women give up more and that the quality of the undergraduate program relates to the gender gap in the likelihood of desisting. Finally, we argue that more competitive women may self-select into higher-quality institutions.
Journal: Applied Economics
Pages: 1757-1768
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099525
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099525
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# input file: RAEC_A_2099801_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lucia Ferrone
Author-X-Name-First: Lucia
Author-X-Name-Last: Ferrone
Author-Name: Gianna Claudia Giannelli
Author-X-Name-First: Gianna Claudia
Author-X-Name-Last: Giannelli
Title: Internal migration, children’s schooling and gender gaps in education
Abstract:
In many sub-Saharan African countries, a large number of people migrate internally due to economic, demographic and political factors. We ask whether household mobility affects child educational outcomes and in what direction. Because girls and boys face different challenges in achieving education, and families often underinvest in girls’ human capital, we focus on gender differentials. We study the case of Uganda, a country where universal basic education and gender equality are still complicated goals. We use the National Panel Survey of 2005, 2009, 2010 and 2011 to develop fixed effects models of the relationship between mobility and children’s educational outcomes: school delay and attendance. We find that moving with the family during primary or lower secondary school decreases delay in schooling and increases school attendance for boys, while we do not find any significant effect for girls. We argue that our results confirm pro-male preferences of families, where girls do not benefit equally from the opportunities offered by internal migration. Expanding girls’ opportunities, as well as providing adequate services, are crucial steps in achieving gender equality in education.
Journal: Applied Economics
Pages: 1807-1829
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099801
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099801
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# input file: RAEC_A_2099802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dahai Fu
Author-X-Name-First: Dahai
Author-X-Name-Last: Fu
Author-Name: Yue Sheng
Author-X-Name-First: Yue
Author-X-Name-Last: Sheng
Author-Name: Xiaocong Xu
Author-X-Name-First: Xiaocong
Author-X-Name-Last: Xu
Title: The gains from import variety: how much does demand matter
Abstract:
This paper highlights the impact of variable demand on the evaluation of welfare gains from import variety. We use a nested demand structure and construct a model to estimate the gains from import variety, which allows us to relax the assumption of time-invariant demand in previous studies. Our modified approach shows that welfare gains from import variety depends on the demand shifts, in which the gains could be either positive or negative. In particular, China’ s gains from imported varieties between 1995 and 2010 are underestimated 0.94% of 2010 GDP when assuming constant demand. The sources of variety gains also change significantly under the framework of variable demand.
Journal: Applied Economics
Pages: 1830-1844
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099802
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099802
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# input file: RAEC_A_2099803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Volker Seiler
Author-X-Name-First: Volker
Author-X-Name-Last: Seiler
Author-Name: Bernard Michael Gilroy
Author-X-Name-First: Bernard Michael
Author-X-Name-Last: Gilroy
Author-Name: Christian Peitz
Author-X-Name-First: Christian
Author-X-Name-Last: Peitz
Author-Name: Nico Stöckmann
Author-X-Name-First: Nico
Author-X-Name-Last: Stöckmann
Title: 40 years of economic reform - the case of Pudong new area open economic zone in Shanghai
Abstract:
This paper investigates the impact of special economic zones (SEZs) on economic growth. We use the Pudong New Area Open Economic Zone in Shanghai for our comparative case study and find this policy tool to have added up to CNY 7,166 to GDP per capita compared to a synthetic counterfactual without such a policy. Given that different reform policies were undertaken in different provinces including Shanghai itself even before the launch of the Pudong New Area Open Economic Zone, our findings might be considered conservative.
Journal: Applied Economics
Pages: 1845-1858
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099803
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099803
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# input file: RAEC_A_2099526_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haerin Shim
Author-X-Name-First: Haerin
Author-X-Name-Last: Shim
Author-Name: Jeong Eun Koo
Author-X-Name-First: Jeong Eun
Author-X-Name-Last: Koo
Author-Name: Tae Sup Shim
Author-X-Name-First: Tae Sup
Author-X-Name-Last: Shim
Title: The effect of implementation of the Stewardship Code on nonprofessional investors’ judgment and decision-making
Abstract:
Since 2010, the Stewardship Code (SC) or similar regulations have been introduced in many countries in order to enhance the quality of institutional investors’ engagement and to improve long-term firm value. Although the effectiveness of the SC has been the subject of ongoing controversy in prior anecdotal or legal studies, there has been little empirical evidence regarding the effects of these policies due to the relatively recent adoption of such codes worldwide. Accordingly, the purpose of this article is to investigate how capital market participants perceive and evaluate the implementation of the SC. Specifically, we examine how SC implementation affects nonprofessional investors’ judgment and decision-making on an investee firm. Based on the results of an experiment with nonprofessional investors, we show that the implementation of the SC may negatively impact nonprofessional investors’ assessments of the firm, contrary to the intended purpose of SC adoption. This study provides timely implications for the future operation and development of the stewardship policies recently adopted in many countries.
Journal: Applied Economics
Pages: 1769-1789
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099526
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099526
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# input file: RAEC_A_2099804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhanguo Zhu
Author-X-Name-First: Zhanguo
Author-X-Name-Last: Zhu
Author-Name: Xiaozhou Ma
Author-X-Name-First: Xiaozhou
Author-X-Name-Last: Ma
Author-Name: Xu Tian
Author-X-Name-First: Xu
Author-X-Name-Last: Tian
Author-Name: Tong Zhang
Author-X-Name-First: Tong
Author-X-Name-Last: Zhang
Title: The value of food products from mixed crop-livestock systems: environmental benefits and regional environmental carrying capacity
Abstract:
Food products from mixed crop-livestock systems is a market-based solution to reduce environmental impacts of livestock worldwide. However, widespread promotion of mixed systems of recycling agriculture depends on consumers’ acceptance of its food products. In this paper, we examine consumers’ preferences and willingness to pay (WTP) for several attributes of pork products, and develop consumer classes based on preferences. Using a choice experiment among 893 Chinese consumers, our results show that consumers are willing to pay a premium for pork with mixed crop-livestock systems claim. In addition, a positive WTP is also detected for different environmental carrying capacity, environmental benefits and quality certifications. We use latent class analysis to identify heterogeneous consumers into five classes: namely balanced thinking, price sensitive, quality preferred, environmental benefits conscious and ecology conscious consumers. Further policies and interventions aimed at promoting the market-oriented operation of mixed crop-livestock systems of recycling agriculture, based on regional environmental carrying capacity, different dimensions of environmental benefits and quality improvement of food products, will be effective.
Journal: Applied Economics
Pages: 1859-1875
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099804
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099804
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# input file: RAEC_A_2099800_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Ryan Sanjaya
Author-X-Name-First: Muhammad Ryan
Author-X-Name-Last: Sanjaya
Author-Name: Swee Hoon Chuah
Author-X-Name-First: Swee Hoon
Author-X-Name-Last: Chuah
Author-Name: Simon Feeny
Author-X-Name-First: Simon
Author-X-Name-Last: Feeny
Author-Name: Robert Hoffmann
Author-X-Name-First: Robert
Author-X-Name-Last: Hoffmann
Title: The Impact of Cultural Heterogeneity on Violence in Indonesia: Fractionalisation versus polarization
Abstract:
The determinants of large-scale conflict have been examined extensively in the academic literature. The factors contributing to everyday violence have received less attention despite this smaller-scale conflict having a high human and economic cost. We analyse a dataset at the level of 495 Indonesian districts to estimate the determinants of non-domestic, small-scale violence prevalent in this nation. We focus on the role of pronounced cultural heterogeneity that characterizes Indonesia and contribute to the literature by empirically testing whether established conflict theory holds for smaller scale violence data in the case of Indonesia. Ethnic polarization (rather than fractionalization) is the main driver of conflict intensity, suggesting that district-level conflicts are commonly over public goods. Cultural heterogeneity has a curvilinear effect on conflict. It increases the intensity of violence up to a point, after which the level decreases. Overall, our results offer some support for the Esteban and Ray model of conflict.
Journal: Applied Economics
Pages: 1790-1806
Issue: 16
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099800
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099800
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# input file: RAEC_A_2099805_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Linlang Zhang
Author-X-Name-First: Linlang
Author-X-Name-Last: Zhang
Author-Name: Han Zhang
Author-X-Name-First: Han
Author-X-Name-Last: Zhang
Author-Name: Xiongyuan Wang
Author-X-Name-First: Xiongyuan
Author-X-Name-Last: Wang
Title: Underwriter ratings and risk-taking of IPO firms: evidence from China
Abstract:
Unlike the existing literature, which focuses on the underwriter reputation, this paper examines the effect of underwriters on the risks of IPO (initial public offering) firms from the perspective of the ability to control risks. Using the underwriter rating by CSRC (China Securities Regulatory Commission), we find that the underwriter rating provides incremental information over the underwriter reputation and mainly reflects the ability of the underwriter to control risks. Consistent with this hypothesis, we document a negative relationship between the underwriter rating and the earnings volatility of firms after an IPO. Our results remain qualitatively similar after a series of robustness tests. Additional analysis suggests that an underwriter with a higher ability to control risks, proxied by the risk index of the underwriter, can significantly lower firms’ risks. Moreover, we find that a highly rated underwriter can reduce stock return volatility, discretionary accruals, the potential for a decline in earnings, and penalties by the CSRC. This study enriches the literature on how underwriter plays an essential role in IPOs from the ability to control risks.
Journal: Applied Economics
Pages: 1877-1890
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2099805
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2099805
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# input file: RAEC_A_2100869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wei-Chih Chen
Author-X-Name-First: Wei-Chih
Author-X-Name-Last: Chen
Author-Name: Xiaohua Bao
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Bao
Title: Technical barriers to trade and China’s exports: firm-level evidence
Abstract:
This paper studies the trade-restriction and trade-promotion effects that technical barriers to trade (TBTs) have on export performances of Chinese firms over the period 2001–2006. Different from tariffs and most traditional non-tariff measures, TBTs can impose both positive and negative impacts on exports. On the one hand, TBTs increase the compliance costs and have the trade-restriction effect. On the other hand, TBTs improve product quality and mitigate uncertainty, which enhances demand and promotes trade. We investigate how TBTs influence the extensive and intensive margins of a firm’s exports and how the impact varies with the size, productivity, and ownership of a firm. Specifically, we look into a firm’s entry and exit decisions, export value, unit price, and quantity. The estimated results show that TBTs decrease both the extensive and intensive margins of small firms, and they improve the export performances of large firms. The finding indicates that while small firms that cannot meet the technical standards will leave their markets, large firms will stay in their markets and expand their export volumes. The trade effects of TBTs also change by characteristics of the importing country and sector.
Journal: Applied Economics
Pages: 1919-1938
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100869
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100869
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# input file: RAEC_A_2100872_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yongguang Zhou
Author-X-Name-First: Yongguang
Author-X-Name-Last: Zhou
Author-Name: Yiming Wang
Author-X-Name-First: Yiming
Author-X-Name-Last: Wang
Author-Name: Zhennan Gao
Author-X-Name-First: Zhennan
Author-X-Name-Last: Gao
Title: Effects of market liquidity on price dynamics in a heterogeneous belief model
Abstract:
To understand the effect of liquidity on asset pricing, this study constructs a boundedly rational asset pricing model, introducing market liquidity and heterogeneous beliefs. Based on our model, we conduct empirical tests using the S&P 500 index from 1991 to 2021 and the CSI 500 index from 2007 to 2021. We find that market liquidity significantly influences investors’ expectations and belief switching. When market liquidity is scarce, fundamentalists in both markets expect the price to converge more quickly to its fundamental value, whereas chartists perceive that the price deviates from its fundamental value less rapidly. Lack of liquidity mitigates the investors’ original switching strategy, resulting in positive feedback as a net effect. Moreover, the S&P 500 index is efficient, whereas the CSI 500 index is slightly undervalued in the long run. Both markets exhibit large fluctuations and inefficiency during short periods such as the 2008 financial crisis and COVID-19 pandemic. As such, safeguards should be implemented against sudden shocks and the resulting price deviation and market inefficiency.
Journal: Applied Economics
Pages: 1972-1989
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100872
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100872
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Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1972-1989
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# input file: RAEC_A_2100049_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tracey Broome
Author-X-Name-First: Tracey
Author-X-Name-Last: Broome
Author-Name: Winston Ricardo Moore
Author-X-Name-First: Winston Ricardo
Author-X-Name-Last: Moore
Author-Name: Philmore Alleyne
Author-X-Name-First: Philmore
Author-X-Name-Last: Alleyne
Title: R&D participation and firm performance in the Caribbean
Abstract:
Despite the benefits of R&D and the incentives available for such investments in most countries, the Caribbean has one of the lowest rates of R&D investment in the world. One potential reason for this is the financing constraints encountered by most Caribbean firms. Using a Cobb-Douglas production function augmented with innovation input and output variables and data from the LACES and PROTEqIN databases of the Enterprise Surveys and Compete Caribbean respectively, this research examines the extent to which past R&D experience and current innovative activities enhance the performance of manufacturing and service firms. The findings suggest that prior R&D participation contributes significantly to increased productivity levels of manufacturing firms. On the other hand, skillset is very important to the productivity of service enterprises. Furthermore, past R&D involvement increases the probability of innovation, specifically goods/service innovation and marketing improvements.
Journal: Applied Economics
Pages: 1891-1907
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100049
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100049
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# input file: RAEC_A_2100870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alex Chernoff
Author-X-Name-First: Alex
Author-X-Name-Last: Chernoff
Author-Name: Casey Warman
Author-X-Name-First: Casey
Author-X-Name-Last: Warman
Title: COVID-19 and implications for automation
Abstract:
COVID-19 may accelerate the automation of jobs as employers invest in technology to safeguard against pandemics. We identify occupations that have high automation potential and also exhibit a high risk of viral infection. We examine regional variation in terms of which U.S. local labour markets are most at risk. Next, we outline the differential impacts COVID-19 may have on different demographic groups. We find that the highest-risk occupations in the U.S. are those held by females with mid- to low-wage and education levels. Using comparable data for 25 other countries, we also find that women in this demographic are at the highest risk internationally.
Journal: Applied Economics
Pages: 1939-1957
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100870
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100870
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# input file: RAEC_A_2100871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Howard J. Wall
Author-X-Name-First: Howard J.
Author-X-Name-Last: Wall
Title: Sex and the business cycle
Abstract:
This paper reconsiders the differences between the sexes in the depths, lengths, timing, and employment effects of recessions in the United States. I find that, prior to the mid-1980s, female employment was in recession less frequently than male employment, but that the opposite has been true since then. Also, monthly employment growth forgone because of recession was roughly the same for women and men prior to the mid 1980s, but was substantially greater for men afterwards. Accounting for the sex-specific timing of recessions, as well as for forgone employment growth, (1) the negative effects of recessions on both female and male employment are much larger than is usually found, (2) male employment is hit relatively harder by recessions, and (3) the difference between the sexes in the employment effects of recession is much smaller than the previous literature indicates.
Journal: Applied Economics
Pages: 1958-1971
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100871
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100871
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# input file: RAEC_A_2100868_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bruno Damásio
Author-X-Name-First: Bruno
Author-X-Name-Last: Damásio
Author-Name: Sandro Mendonça
Author-X-Name-First: Sandro
Author-X-Name-Last: Mendonça
Title: Leader-follower dynamics in real historical time: a Markovian test of non-linear causality between sail and steam (co-)development
Abstract:
The most dramatic changes in modern shipping occurred with the application of new industrial-age technologies to oceanic transportation. In metal-hulled and engine-powered trading platforms, industrial-age steamers (especially tramps and liners) lead to marked increases in the average tonnage of a typical vessel crossing the seas of an expanding global economy. Some of the most important developments had to do with the substitution of traditional wind-driven ships by successive cohorts of vessels exploiting the comparative advantages of mechanization. In this paper, we deploy a set of both established and less-orthodox quantitative approaches to historical commercial shipping time-series so as to model the (complex) relationship between steam and sail performance. We find that, indeed, there is evidence of leader-follower dynamics during the later part of 19th century. This process of ‘creative destruction’ was non-linear.
Journal: Applied Economics
Pages: 1908-1918
Issue: 17
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100868
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100868
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Handle: RePEc:taf:applec:v:55:y:2023:i:17:p:1908-1918
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# input file: RAEC_A_2102135_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sunghun Lim
Author-X-Name-First: Sunghun
Author-X-Name-Last: Lim
Author-Name: SongYi Paik
Author-X-Name-First: SongYi
Author-X-Name-Last: Paik
Title: The impact of immigration enforcement on agricultural employment: evidence from the US E-Verify policy
Abstract:
Immigration enforcement often brings unintended consequences in domestic labor markets. Using the universe of administrative immigration data from 2005 to 2019, we uncover evidence that the E-Verify, an employment verification mandate, exacerbates the ongoing farm labor shortage in the US. Relying on the newly developed staggered difference-in-differences method, we find that the E-Verify policy restricts the employment of undocumented farmworkers. Our results indicate that domestic workers are not being replaced with declined undocumented workers wherein the inflow of the H-2A visa migrants still remains. Our finding advances a more nuanced picture of the US labor shortage driven by the E-Verify policy. This paper contributes to the rising policy debate on reforming nationwide E-Verify enactment and the H-2A visa program in the US.
Journal: Applied Economics
Pages: 2223-2259
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102135
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102135
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Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2223-2259
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# input file: RAEC_A_2102126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shuimu Ju
Author-X-Name-First: Shuimu
Author-X-Name-Last: Ju
Author-Name: Honglei Tang
Author-X-Name-First: Honglei
Author-X-Name-Last: Tang
Title: Competition and operating efficiency of manufacturing companies in E-commerce environment: empirical evidence from Chinese garment companies
Abstract:
E-commerce technology has been paid more and more attention by manufacturing companies. The wide application of e-commerce has enhanced the competitive advantage of companies, but it also intensified the competition among them. Competition has many impacts on companies, among which the impact on operating efficiency is particularly concerned. This paper provided in-depth analysis using a two-stage methodology to analyse the specific impact of competition on the operating efficiency of garment companies (with B2C mode) in e-commerce environment. Firstly, the game cross-efficiency (GCE) model and related indicators were used to evaluate the operating efficiency of selected companies from 2011 to 2018. The results showed that compared to the traditional cross-efficiency (TCE), the scores of GCE considering competition were improved. This indicated that although e-commerce technology intensified the competition among Chinese garment companies, competition improved their operating efficiency. Moreover, the GCE model theoretically remedied some shortcomings of traditional DEA models. Secondly, the panel data model was used to analyse the specific impact of competition on operating efficiency. The results indicated that competition significantly increased pure technical efficiency, but it was not beneficial to scale efficiency. Based on these findings, some policy implications were proposed.
Journal: Applied Economics
Pages: 2113-2128
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102126
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102126
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# input file: RAEC_A_2102130_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yexin Zhou
Author-X-Name-First: Yexin
Author-X-Name-Last: Zhou
Author-Name: Bo Yuan
Author-X-Name-First: Bo
Author-X-Name-Last: Yuan
Author-Name: Bin Liang
Author-X-Name-First: Bin
Author-X-Name-Last: Liang
Author-Name: Qi Cui
Author-X-Name-First: Qi
Author-X-Name-Last: Cui
Author-Name: Shengling Zhang
Author-X-Name-First: Shengling
Author-X-Name-Last: Zhang
Author-Name: Juan He
Author-X-Name-First: Juan
Author-X-Name-Last: He
Title: How does perceived environmental pollution affect migration interests: adapt or flee?
Abstract:
We utilized the China Genuine Progress Indicator Survey, a unique national survey data from China, to explore the effects of individuals’ perceived pollution on their migration interests. Results show a significantly positive effect of perceived environmental pollution on an individual’s migration interests. A higher level of perceived pollution increases the possibility of migration by 6.5%. Meanwhile, adaptive behaviours such as using facemasks, air cleaners, or water cleaners could not be alternatives to migration. In particular, well-educated, young, high-income groups, as well as those engaged in professional and technical work, are more affected by perceptions about environmental pollution. They are likely to show higher levels of perceived pollution, which could possibly lead to the brain drain effect. Moreover, people’s environmental attitudes have moderating effects on the migration interests triggered by pollution. Our focus on potential population outflow can bear new implications for the formulation of forward-looking environmental policies.
Journal: Applied Economics
Pages: 2146-2166
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102130
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102130
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# input file: RAEC_A_2102128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haifang Xiong
Author-X-Name-First: Haifang
Author-X-Name-Last: Xiong
Author-Name: Tianming Liu
Author-X-Name-First: Tianming
Author-X-Name-Last: Liu
Author-Name: Zhiqiang Wang
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Wang
Title: Financial effect of long-term policy equity injection: evidence from special construction funds in China
Abstract:
Chinese two policy banks implemented long-term equity injections for some listed companies through special construction funds from 2015 to 2016. We use the PSM-DID method to examine the effect of this equity injection on corporate financing decisions. We find that the equity injection has the financial effect of broadening corporate financing channels and optimizing debt structure, which raises the speed of capital structure adjustment and encourages corporate investment. Financing cost, financing channel, and corporate governance mechanisms can explain the financing effect of equity injection policy, showing that the signal channel plays a vital role in the equity injection policy. Companies with weak financing capabilities, such as private, small scale, weak profitability, central and western region companies, benefit more from the equity injection policy. Corporate governance capabilities significantly affect policy effectiveness. Our conclusions are robust after satisfying the assumptions and other factors that may interfere with the empirical results. We confirm the role of equity injection in reducing corporate financing costs, stabilizing investment, and encouraging long-term, high-quality development of corporations.
Journal: Applied Economics
Pages: 2129-2145
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102128
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102128
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# input file: RAEC_A_2102134_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chen Liang
Author-X-Name-First: Chen
Author-X-Name-Last: Liang
Author-Name: Shuang-Jin Wang
Author-X-Name-First: Shuang-Jin
Author-X-Name-Last: Wang
Author-Name: Maggie Foley
Author-X-Name-First: Maggie
Author-X-Name-Last: Foley
Author-Name: Guo-Hua Ma
Author-X-Name-First: Guo-Hua
Author-X-Name-Last: Ma
Title: The path selection on improving the quality of environmental information disclosure – configuration analysis based on fsQCA
Abstract:
The environmental information disclosure system is regarded as an important tool to supervise and manage the environmental behavior of public companies in China. The corporate environmental governance mechanism could be utilized to improve the quality of corporate environmental information disclosure. Based on the 248 public firms in the chemical industry in China, this paper uses the NCA and fsQCA approach to study the joint roles of environmental regulations and other internal and external factors on the quality of environmental information disclosure. The results show that enterprises can strengthen environmental information disclosure through the combinations of multiple factors, rather than focusing on a single factor. The government should establish an effective environmental management system to strengthen environmental supervision and enhance environment enforcement on public companies.
Journal: Applied Economics
Pages: 2207-2222
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102134
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102134
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Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2207-2222
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# input file: RAEC_A_2102131_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hyunchul Kim
Author-X-Name-First: Hyunchul
Author-X-Name-Last: Kim
Author-Name: Jungwon Yeo
Author-X-Name-First: Jungwon
Author-X-Name-Last: Yeo
Title: The effect of product variety in multiproduct retail pricing: the case of supermarkets
Abstract:
The search literature offers several explanations as to how a multiproduct retailer’s offering of a larger variety may affect consumers’ search behaviour and hence prices. Among them are (1) higher sales to be generated when lower prices discourage consumers’ further search; and (2) more pricing power due to improved consumer expectations about consumer-product match valuations. The former concerns independent categories and derives a negative relationship while the latter concerns substitutes within categories and derives a positive relationship. To examine the effect of a retailer’s variety offerings on the price levels using scanner data from the supermarket industry, we devise metrics of assortment width and depth, where the former measures variety in category (more independent) offerings and the latter, variety in brand (more substitutable) offerings within categories. We find that the effect of an additional offering to each dimension of assortment decreases in the other dimension, leading the effect of assortment width to be negative while the effect of the depth to be positive for the majority of the stores used in our analysis—a result that reconciles the theories that purport to draw opposite conclusions.
Journal: Applied Economics
Pages: 2167-2188
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102131
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102131
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Handle: RePEc:taf:applec:v:55:y:2023:i:19:p:2167-2188
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# input file: RAEC_A_2102133_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lei Zhang
Author-X-Name-First: Lei
Author-X-Name-Last: Zhang
Author-Name: Senlin Wang
Author-X-Name-First: Senlin
Author-X-Name-Last: Wang
Author-Name: Zibin Liu
Author-X-Name-First: Zibin
Author-X-Name-Last: Liu
Author-Name: Yukun Sun
Author-X-Name-First: Yukun
Author-X-Name-Last: Sun
Author-Name: Xiang Zhao
Author-X-Name-First: Xiang
Author-X-Name-Last: Zhao
Title: Does urbanization intensify land finance? Evidence from the county-to-district policy in China
Abstract:
Land finance is one of the economic phenomena in the process of urbanization in China. Studying the impact of urbanization on land finance may help us to better formulate urbanization policies, especially for developing countries. We use the microdata of urban land transactions in China from 2005 to 2016 and adopt a differences-in-differences method based on the county-to-district policy to investigate the impact of urbanization on land finance. We find that the urbanization reform has significantly increased the local government’s reliance on land finance. We also find that the policy has a larger impact on land finance for undeveloped cities. Land finance provides a critical source of funds for the urbanization led by local governments, but with the further promotion of urbanization, the reliance on land finance by local governments will show a gradual downward trend. The mechanism test finds that urbanization promotes land finance dependence by increasing the transfer revenue and areas of existing construction land and infrastructure construction investment. The study of the impact of China’s urbanization on land finance can serve as a reference for other developing countries’ urbanization, and can further provide practical guidance for the promotion of China’s new-type urbanization.
Journal: Applied Economics
Pages: 2189-2206
Issue: 19
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102133
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102133
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# input file: RAEC_A_2188169_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ting Yang
Author-X-Name-First: Ting
Author-X-Name-Last: Yang
Author-Name: Chengke Zhu
Author-X-Name-First: Chengke
Author-X-Name-Last: Zhu
Title: High-speed railway and shadow banking: evidence from finance leases
Abstract:
This paper empirically investigates the effect of improved transportation infrastructure on finance leases, a representative form of China’s shadow banking sector, using a sample of Chinese listed companies. We find robust evidence that there is a significant decline in firms’ finance leases after the opening of the high-speed railway (HSR). Furthermore, HSR brings more favourable contract terms of leasing, including larger financing size, longer maturity, and lower cost. The heterogeneity analysis shows that HSR mainly reduces the costly nonbank-affiliated leases, and finance leases are reduced primarily in state-owned enterprises.
Journal: Applied Economics
Pages: 2596-2606
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2023.2188169
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2188169
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# input file: RAEC_A_2103505_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ly Nguyen
Author-X-Name-First: Ly
Author-X-Name-Last: Nguyen
Author-Name: Andrew Schmitz
Author-X-Name-First: Andrew
Author-X-Name-Last: Schmitz
Title: The welfare impacts of Covid-19 on the U.S. salmon sector
Abstract:
This research estimates the effects of COVID-19 on the U.S. supply and demand for salmon over two distinct periods. The first period reflects the first year (2020) since the COVID-19 outbreak, and the second period covers the outbreak’s second year (2021). The effects of COVID-19 on salmon prices, domestic production, and imports are analysed through graphics, elasticities, and spatial welfare economics derived from the equilibrium displacement model of the U.S. salmon market. In the first year, COVID-19 caused a reduction in domestic demand. As a result, U.S. salmon producers and consumers lost $302 million. Consumer loss accounts for 87% of this value. In 2021, however, domestic consumption recovered, with a positive effect of $447 million on consumers, outweighing the negative impact from 2020. Together, the domestic producers and consumers gained approximately $512 million. The net market gain (a combination of the first- and second-year effects) was $210 million. These results are subject to the magnitudes of change in demand and supply due to COVID-19 and transportation costs.
Journal: Applied Economics
Pages: 2579-2595
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103505
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103505
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# input file: RAEC_A_2103084_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Ayesha Sayed
Author-X-Name-First: Ayesha
Author-X-Name-Last: Sayed
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Influence of unconventional monetary policy on agricultural commodities futures: network connectedness and dynamic spillovers of returns and volatility
Abstract:
Our research examines connectedness landscape and the dynamic spillovers of volatility and returns in the network comprising eleven agricultural commodities and US shadow short rate in a quality of inflation indicator, observed in monetary policymaking. We use daily data from November 2000 to May 2021. We document monetary policy as a net transmitter of spillover for both return and volatility of agricultural commodities. We find significant volatility connectedness among agricultural commodities. The connectedness is shown to be of a time-varying nature, exhibiting considerable increases during periods of market turmoil. The results of this paper provide relevant insights into the interrelations of US monetary policy and agricultural commodity prices, being, hence, potentially useful for commodity investors, brokers and dealers, as well as for market regulators designing policy solutions for financial stability enhancements.
Journal: Applied Economics
Pages: 2521-2535
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103084
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103084
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# input file: RAEC_A_2103504_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rati Ram
Author-X-Name-First: Rati
Author-X-Name-Last: Ram
Title: Prospects for attaining the multidimensional poverty target of SDG 1.2: evidence from the most recent multiyear harmonized data for 75 developing countries
Abstract:
This paper uses recent multiyear harmonized data on multidimensional poverty for 75 developing countries to judge prospects for attaining SDG Target 1.2 of reducing multidimensional poverty by one-half. Exponential rate of decline in multidimensional poverty headcount is calculated and extrapolated to the SDG period 2015–2030 to see whether the rate of decline would lower multidimensional poverty headcount by 50% over the 15-year period. There are 43 countries in which the observed rate of decline is large enough to reduce the headcount by half in 15 years. These countries had a total population of 3.9 billion and multidimensional poverty headcount of 580.7 million. There are 24 countries, with multidimensional poverty headcount of 549.9 million, where rate of reduction is not large enough to lower MDP headcount by one-half in 15 years. There are 8 countries that may or may not make the target. The international community needs to focus on the 24 countries that are likely to miss the target even in the pre-COVID scenario studied in this research. When post-COVID data become available in a few years, it should be possible to reassess the situation and to judge the effect of COVID on prospects for reaching the SDG Target 1.2.
Journal: Applied Economics
Pages: 2567-2578
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103504
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103504
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# input file: RAEC_A_2103083_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Svetlana Drljača Kanazir
Author-X-Name-First: Svetlana Drljača
Author-X-Name-Last: Kanazir
Title: Credit risk cyclicality in Serbian banking sector
Abstract:
In literature there are different research results regarding the impact of borrower’s size on cyclicality of credit risk. The aim of this research is to determine whether the credit risk cyclicality increases with the size of the borrower, using data from Serbian banking sector. The research presented herein is one of the first for developing countries with this subject and where credit risk was approximated by the default rate. Empirical analysis of the time series of loan default rates, as dependent variable, and macroeconomic factors, as explanatory variable, is based on the panel error correction model. Panel units are risk segments. Amount of annual revenue is key criteria for granulation borrowers within key four risk segments (retail, micro, SME and large corporate) that corresponds to its size. In multi-factor model, research results confirm that there is long term relationship between macroeconomic factors and loan default rate in Serbian banking sector in all risk segments. However, in model where GDP is explanatory variable, in the segment of small- and medium-sized enterprises, the adjustment coefficient is not statistically significant. It can be inferred that the credit risk of the SMEs segment is the most resistant to changes in the business cycle phases.
Journal: Applied Economics
Pages: 2505-2520
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103083
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103083
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# input file: RAEC_A_2103503_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Danyan Wen
Author-X-Name-First: Danyan
Author-X-Name-Last: Wen
Author-Name: Mengxi He
Author-X-Name-First: Mengxi
Author-X-Name-Last: He
Author-Name: Yudong Wang
Author-X-Name-First: Yudong
Author-X-Name-Last: Wang
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Forecasting stock market realized volatility: the role of global terrorist attacks
Abstract:
In this study, we provide the predictive linkage between global terrorist attacks and stock market volatility. We propose the predictive model by extending the prevailing heterogeneous autoregressive model for realized volatility (HAR-RV) with global terrorism and denote it as HAR-RV-GT. According to the Diebold – Mariano test and the model confidence set, we consistently find the superior forecasting performance delivered by the HAR-RV-GT model. For comprehensive empirical results, we extend the key finding to various settings including the consideration of popular jump and leverage effects, the use of more types of forecasting models, and the inclusion of long-horizon global terrorist attacks as well as the domestic terrorist attacks in the US. Additionally, the substantial economic gains based on a mean-variance investor confirm the valuable forecasting role of terrorist attacks. Our results are robust to a wide range of checks.
Journal: Applied Economics
Pages: 2551-2566
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103503
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103503
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# input file: RAEC_A_2103502_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Heidi Kaila
Author-X-Name-First: Heidi
Author-X-Name-Last: Kaila
Title: Ethnic digital divide? Evidence on mobile phone adoption
Abstract:
Between 2006 and 2014, Vietnam experienced a true information technology revolution. In rural areas, mobile phone ownership increased from 18% to 89%. I use a panel dataset from this period to study the ‘digital divide’ between the ethnic majority group and ethnic minorities. I find that underprivileged ethnic minorities are lag behind in phone adoption. These differences are fully explained by standard factors of demand and by education level, that is, I do not find unobservable barriers in adoption. Analysis using spatial data on digital mobile network coverage reveals that infrastructure is also not a barrier to adoption, even in remote regions of Vietnam. Results are robust to alternative model specifications.
Journal: Applied Economics
Pages: 2536-2550
Issue: 22
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103502
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103502
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# input file: RAEC_A_2101610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mai-Shou Li
Author-X-Name-First: Mai-Shou
Author-X-Name-Last: Li
Author-Name: Xing Gao
Author-X-Name-First: Xing
Author-X-Name-Last: Gao
Title: Difference in returns to schooling between formal and informal employment in China
Abstract:
Based on the 2015 China Health and Nutrition Survey (CHNS), the difference in returns to schooling between formal and informal employment was empirically analysed using the IV-Heckman model. It is found in the research that there are significant differences in the average income and level of educational human capital between formal and informal employment, and that returns to schooling of formal employment is much higher than that of informal employment. In addition, the propensity score matching (PSM) method was used to study the returns to schooling of high school and university of the two employment groups. The results indicate that returns to schooling of high school and university of the formal employment are significantly higher than those of the informal employment group, while the difference in returns to schooling of university is greater than that of high school.
Journal: Applied Economics
Pages: 2098-2111
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101610
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101610
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# input file: RAEC_A_2100873_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaolin Sun
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Sun
Author-Name: Jun Ma
Author-X-Name-First: Jun
Author-X-Name-Last: Ma
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Hailong Liu
Author-X-Name-First: Hailong
Author-X-Name-Last: Liu
Title: The dynamic impacts of skewness on the risk–return relationship in the dry bulk spot freight rates and FFAs
Abstract:
This paper examines the dynamic impacts of skewness on the risk–return relationship among dry bulk spot freight rates and the corresponding forward freight agreements (FFA) markets. We use swift Skewed Generalized T distribution under the GARCH-in-mean (GARCH-M) model to capture the properties of time-varying skewness, pure risk, and volatility spillovers among the dry bulk vessels. Our findings clarify that skewness price, as an endogenous variable, which is opposite to the pure risk price, illustrates the conflicting nexus of risk and return in theory and empirical study. Additionally, the mutual spillover effects among all the examined markets reveal that to what extent the returns represent compensation for risk, and to what extent the interaction of dry bulk spot and its FFAs affects the pricing. Our results provide market participants understanding the real diversity of risk–return relationships of shipping markets regarding risk aversion and investments.
Journal: Applied Economics
Pages: 1991-2004
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2100873
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2100873
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Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:1991-2004
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# input file: RAEC_A_2101608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alex Backwell
Author-X-Name-First: Alex
Author-X-Name-Last: Backwell
Author-Name: Ralph Rudd
Author-X-Name-First: Ralph
Author-X-Name-Last: Rudd
Title: Throwing away a billion yuan, real or rand: the cost of sub-optimal hedging in high interest-rate environments
Abstract:
Interest-rate volatility is known to be positively level dependent, i.e. to correlate positively with interest-rate levels. However, recent research has provided compelling evidence that as interest rates rise, the amount of level dependence decreases. We advance this line of research by investigating the amount of volatility level dependence in an emerging market with high interest rates, and find no evidence for the positive level dependence implied by the popular log-normal forward-LIBOR market model. This has important consequences for the hedging of interest-rate derivatives: when hedging caps, using the log-normal market model can be worse than not hedging at all and it is significantly outperformed by its normally distributed counterpart, which exhibits no level dependence.
Journal: Applied Economics
Pages: 2060-2069
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101608
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101608
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# input file: RAEC_A_2101607_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mattia Guerini
Author-X-Name-First: Mattia
Author-X-Name-Last: Guerini
Author-Name: Duc Thi Luu
Author-X-Name-First: Duc Thi
Author-X-Name-Last: Luu
Author-Name: Mauro Napoletano
Author-X-Name-First: Mauro
Author-X-Name-Last: Napoletano
Title: Synchronization patterns in the European Union
Abstract:
In this paper, we quantify business cycles synchronization in the European Union by combining Principal Component Analysis (PCA) with a Random Matrix Theory (RMT) model. We employ a balanced panel of industrial production indexes over the 2000–2017 period and we track the evolution of the European synchronization, as measured by the largest and statistically significant principal component. Using the information contained in the eigenvector associated to it, we then identify the dynamics of synchronization clusters. Our results suggest that the degree of synchronization has increased since the introduction of the common currency and until the Great Recession, but decreased thereafter. In addition, our results point to the evolution of synchronization clusters over the past decades. Whereas western and eastern countries had divergent business cycles at the beginning of the 21st century, they have become more synchronized over the analysed period. However, since the dawn of the European sovereign debt crisis, the synchronization divide has become more apparent between northern and southern economies.
Journal: Applied Economics
Pages: 2038-2059
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101607
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101607
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# input file: RAEC_A_2101606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Ting-Cih Chen
Author-X-Name-First: Ting-Cih
Author-X-Name-Last: Chen
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Title: Bank competition and unemployment
Abstract:
Much effort has been devoted to exploring the effect of bank competition on economic growth and stability. This paper shifts the focus towards the unemployment outcome. Using the Boone and Lerner indicators as well as bank concentration ratios, it finds, in a panel of developing and developed countries, that unemployment declines with bank competition up to a certain level of bank competition, above which it rises with bank competition. The impact seems to operate through investment and self-employment. The data thus suggest that there exists an optimal bank competition level that minimizes unemployment and too less and too much competition in a banking sector is detrimental to unemployment as it impedes capital accumulation and entrepreneurship development.
Journal: Applied Economics
Pages: 2024-2037
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101606
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101606
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# input file: RAEC_A_2101605_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Linjie Wang
Author-X-Name-First: Linjie
Author-X-Name-Last: Wang
Author-Name: Jean-Paul Chavas
Author-X-Name-First: Jean-Paul
Author-X-Name-Last: Chavas
Author-Name: Jian Li
Author-X-Name-First: Jian
Author-X-Name-Last: Li
Title: The dynamic impacts of disease outbreak on vertical and spatial markets: the case of African Swine Fever in China
Abstract:
This paper investigates the dynamic effects of a disease outbreak on vertical and spatial markets, with an application to the African Swine Fever (ASF) and its impact on Chinese hog markets. Relying on a flexible representation of vertical and spatial price dynamics, we investigate how ASF affected the pork cycle and price transmission across markets. We find that the ASF outbreak had larger long-term effects on spatial prices than on vertical prices, likely reflecting inter-regional trade bans imposed by the government. Our analysis indicates that ASF contributed to shortening the period of the pork cycle. We also provide evidence that the ASF outbreak affected cointegration relations across markets, especially among regional markets.
Journal: Applied Economics
Pages: 2005-2023
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101605
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101605
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Handle: RePEc:taf:applec:v:55:y:2023:i:18:p:2005-2023
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# input file: RAEC_A_2101609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Teng Ma
Author-X-Name-First: Teng
Author-X-Name-Last: Ma
Author-Name: Yimeng Du
Author-X-Name-First: Yimeng
Author-X-Name-Last: Du
Author-Name: Tao Xu
Author-X-Name-First: Tao
Author-X-Name-Last: Xu
Author-Name: Wang Chen
Author-X-Name-First: Wang
Author-X-Name-Last: Chen
Title: Cross-regional effects of renewable power generation on the electricity market: an empirical study on Japan's electricity spot market
Abstract:
We examined the indirect effects of renewable power generated in Tohoku on the electricity spot market in Tokyo, through the channel of cross-regional interconnection. By adopting a two-step regression analysis framework, we investigated how the renewable power generated in Tohoku affects Tokyo’s spot price and market volatility. Our results indicate that the electricity spot market is affected not only by within-regional renewable power generation but also by cross-regional transmitted renewable power generation through interconnection. The relatively higher price reduction effect of transmitted power can be attributed to higher price elasticity under a tight supply-demand balance. Our results confirm the cross-regional price stabilization effect of renewable power generation in Tohoku. We attribute the negative effect on realized volatility of Tokyo to the relatively stabler renewable electricity supply from Tohoku. Furthermore, we find that renewable power producers – especially solar power producers – are not incentivized by the fixed-price feed-in tariff to meet electricity demand during peak hours.
Journal: Applied Economics
Pages: 2070-2097
Issue: 18
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2101609
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2101609
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# input file: RAEC_A_2187036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Senhua Huang
Author-X-Name-First: Senhua
Author-X-Name-Last: Huang
Author-Name: Feng Han
Author-X-Name-First: Feng
Author-X-Name-Last: Han
Title: Can the agglomeration of producer services boost China’s ‘going out’?
Abstract:
As China has been encouraging enterprises to ‘go global’ and actively promoting the optimization of industrial structure, it is important to discuss the impact of its outward foreign direct investment (OFDI) considering producer service industry agglomeration. For analysing the mechanism by which the agglomeration of producer services affects China’s OFDI, this study uses inter-provincial panel data from 2004 to 2019 and a spatial Durbin model to empirically test the impact of producer service agglomeration on OFDI. We show that the agglomeration of producer services significantly promotes OFDI in a particular region through economies of scale and enterprise productivity improvement. And it also significantly promotes OFDI in its neighbouring regions. The effect of producer service agglomeration on OFDI shows regional heterogeneity. Namely, the agglomeration of producer services in the eastern region promotes the OFDI in this region and it has not had a significant impact on the OFDI in neighbouring regions. Further, the agglomeration of producer services in the central and western regions does not have a significant effect on their OFDI and that of neighbouring regions.
Journal: Applied Economics
Pages: 2709-2724
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2023.2187036
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187036
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# input file: RAEC_A_2104801_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mukhriz Izraf Azman Aziz
Author-X-Name-First: Mukhriz Izraf Azman
Author-X-Name-Last: Aziz
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Dang Khoa Tran
Author-X-Name-First: Dang Khoa
Author-X-Name-Last: Tran
Title: Modelling dynamic connectedness between oil price shocks and exchange rates in ASEAN+3 economies
Abstract:
This study analyses the impact of the oil price shocks (demand, supply, and risk) on the exchange rates of a unique group of developed and emerging economies that comprise the ASEAN +3 countries. We combine a novel approach to decomposing the oil price shocks at a higher (daily) frequency with the dynamic network connected approach to analyse the connectedness of the oil shocks and exchange rates from January 2006 to July 2020, enabling us to cover various phases of the business cycle in these economies. Our results show that demand and risk shocks are the main contributors to the connectedness. We document that the Singapore dollar and the Malaysian Ringgit are the main transmitters of shocks in the ASEAN +3 group, whereas the role of the Chinese yuan and the Japanese yen is rather limited despite the bigger size of these two economies. Our results have important policy implications for investors, regulators, and policymakers.
Journal: Applied Economics
Pages: 2676-2693
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2104801
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2104801
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Handle: RePEc:taf:applec:v:55:y:2023:i:23:p:2676-2693
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# input file: RAEC_A_2103509_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qilong Cao
Author-X-Name-First: Qilong
Author-X-Name-Last: Cao
Author-Name: Jinglei Li
Author-X-Name-First: Jinglei
Author-X-Name-Last: Li
Author-Name: Hongru Zhang
Author-X-Name-First: Hongru
Author-X-Name-Last: Zhang
Title: Asymmetric effects of bank market power on liquid creation: a panel quantile regression approach
Abstract:
This study explores the relationship between market power and bank liquidity creation using panel quantile regression methods. Based on annual data from 187 banks between 2007 and 2019, we reveal that the effect of market power on bank liquidity creation varies in different parts of the liquidity creation distribution. Quantile regression results indicate no statistically significant relationship between market power and low-liquidity creation, and the relationship is significantly positive for middle-liquidity creation. However, there is a significant negative association between market power and high-liquidity creation. Multiple robustness analyses confirm our results. Our research contributes to the literature by providing empirical evidence that the market power effect is not homogeneous and presenting an interpretation of the debate in prior studies.
Journal: Applied Economics
Pages: 2660-2675
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103509
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103509
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# input file: RAEC_A_2103507_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alessandro Cusimano
Author-X-Name-First: Alessandro
Author-X-Name-Last: Cusimano
Author-Name: Chiara Paola Donegani
Author-X-Name-First: Chiara Paola
Author-X-Name-Last: Donegani
Author-Name: Ian Jackson
Author-X-Name-First: Ian
Author-X-Name-Last: Jackson
Author-Name: Stephen McKay
Author-X-Name-First: Stephen
Author-X-Name-Last: McKay
Title: The rationality of rainy day savers: objective and subjective determinants of individual savings in Britain
Abstract:
Using the largest and richest data on savings in Great Britain, six waves of the Wealth and Assets Survey from the Office for National Statistics, we compare standard life cycle models of saving with models using more ‘subjective’ measures, and the added dimension of longitudinal data. Whilst the life cycle model provides a benchmark, regular criticisms remain, particularly people’s propensity to continue saving at older ages. Data on attitudes attenuate that issue, and panel data largely eliminate it. Our results confirm empirically, for Great Britain, the importance of some of the objective determinants of savings included in life cycle theory. When we look at more subjective ones, we show that other factors, including self-rated health and financial pressure, provide an enhanced direct explanation of the propensity to save. Individuals who regard themselves as ‘rainy day savers’ tended to save more, irrespective of their demographic or financial circumstances. Results are robust to different specifications.
Journal: Applied Economics
Pages: 2624-2644
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103507
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103507
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# input file: RAEC_A_2103506_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yun Xiang
Author-X-Name-First: Yun
Author-X-Name-Last: Xiang
Author-Name: Yonghong Zhao
Author-X-Name-First: Yonghong
Author-X-Name-Last: Zhao
Author-Name: Shijie Deng
Author-X-Name-First: Shijie
Author-X-Name-Last: Deng
Title: Pairs trading with fractional Ornstein–Uhlenbeck spread model
Abstract:
This paper proposes to model the spreads associated with financial asset prices by fractional Ornstein – Uhlenbeck (fOU) processes and constructs a pairs trading strategy based on the fOU spread model. It is shown that the Hurst parameter of the fOU process contains substantial information about the anti-persistence, or mean-reversion, characteristic of the spread over time. Consequently, the Hurst parameter is a key measure of mean-reversion for selecting the preferred candidates to trade. Adaptive methods for setting the optimal trading thresholds are proposed as well. The enhanced performance of the proposed trading model is demonstrated by comparison with existing models through simulation studies as well as an empirical analysis using high-frequency Chinese equity market data.
Journal: Applied Economics
Pages: 2607-2623
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103506
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103506
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# input file: RAEC_A_2104802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hans Seerar Westerberg
Author-X-Name-First: Hans Seerar
Author-X-Name-Last: Westerberg
Title: Are payroll tax cuts absorbed by insiders? Evidence from the Swedish retail industry
Abstract:
Payroll tax cuts are considered inefficient for increasing employment among outsiders because insiders will use their power to bargain for higher wages at the expense of outsiders’ possibility of becoming employed. The extent to which insiders or outsiders reap the rewards of payroll tax cuts is a matter of debate, and previous literature has largely focused on the employment effects of outsiders. Using wage statistics of employees in the Swedish retail sector, we investigate the effects of a youth payroll tax cut in 2007 on insiders’ wage earnings and the number of hours worked. In line with earlier studies, the results show that the payroll tax cut increased insiders’ total wage earnings. However, only 21% of the increase in wage earnings resulted from higher bargained wages. 57% of the wage increase corresponds to a higher intensive margin of employment, and the rest was attributed to the number of hours worked by insiders with a higher hourly wage rate. Thus, there is little to suggest that insiders can absorb large amounts of payroll tax cuts in the form of higher bargained wages, even when a small number of workers hold the most bargaining power.
Journal: Applied Economics
Pages: 2694-2708
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2104802
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2104802
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# input file: RAEC_A_2103508_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hua-Sheng Song
Author-X-Name-First: Hua-Sheng
Author-X-Name-Last: Song
Author-Name: Xue-Qian Zheng
Author-X-Name-First: Xue-Qian
Author-X-Name-Last: Zheng
Title: Multi-product exporters in US–China trade war
Abstract:
This study explores empirically how Chinese multi-product firms adjust their exports in response to the U.S. tariff escalations during the US–China trade war, using firm-product-level customs trade data from China. We find strong evidence for a new phenomenon we call the within-firm cross-product chilling effect, whereby an additional tariff targeting some of the firm’s products sold in the destination market is associated with reduced sales of its other untargeted products in that market. The comparison between firm-product-level and product-level analysis suggests that ignoring the within-firm chilling effect would result in a severe underestimation of the tariff effects. Moreover, the chilling effect is more prominent for products that are more important for a firm’s overall sales to the U.S. and that are highly reliant on the U.S. market. We also observe a ‘complete tariff pass-through’ phenomenon at firm-product level, which complements the product-level evidence in previous related studies.
Journal: Applied Economics
Pages: 2645-2659
Issue: 23
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103508
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103508
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# input file: RAEC_A_2102569_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chia-Cheng Ho
Author-X-Name-First: Chia-Cheng
Author-X-Name-Last: Ho
Author-Name: Pei-Hsuan Lee
Author-X-Name-First: Pei-Hsuan
Author-X-Name-Last: Lee
Author-Name: Pei-Su Tsai
Author-X-Name-First: Pei-Su
Author-X-Name-Last: Tsai
Title: Competing hypotheses on the Samuelson effect in futures markets
Abstract:
Using data of 12 commodity futures traded on three major futures exchanges in U.S., we find that about 55% of the agricultural futures contracts exhibit the Samuelson effect, about 30% for energy futures contracts, but only about 20% for metal and financial futures contracts. The proposed approach also enables us to take the unprecedented step of directly comparing explanatory power of the state variable hypothesis and the mean reversion hypothesis over the Samuelson effect. The result overall suggests that the mean reversion hypothesis can better explain the Samuelson effect.
Journal: Applied Economics
Pages: 2261-2272
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102569
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102569
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# input file: RAEC_A_2186363_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kedi Wang
Author-X-Name-First: Kedi
Author-X-Name-Last: Wang
Author-Name: Chen Wu
Author-X-Name-First: Chen
Author-X-Name-Last: Wu
Title: Directors’ and officers’ liability insurance and corporate misconduct: Evidence from China
Abstract:
This study examines whether directors’ and officers’ liability insurance (D&O insurance) plays a governance role in the Chinese capital market. We hypothesize and find that D&O insurance restrains corporate misconduct and that this phenomenon is much more significant in state-owned enterprises (SOEs) than in non-state-owned enterprises (non-SOEs). We think purchasing of D&O insurance can import supervisors to mitigate agency costs caused by owner absence. When agency costs are high, SOEs with D&O insurance experience less corporate misconduct. Our study also finds that when the agency problem caused by owner absence is more serious in SOEs, the role of D&O insurance in corporate governance becomes increasingly important.
Journal: Applied Economics
Pages: 2349-2365
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2023.2186363
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186363
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# input file: RAEC_A_2102571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Didier Laussel
Author-X-Name-First: Didier
Author-X-Name-Last: Laussel
Title: Do firms always benefit from the presence of active customers?
Abstract:
We study price personalization in a two period duopoly with horizontally differentiated products. In the second period, a firm has collected detailed information on its old customers, using it to engage in price personalization. Customers, when returning to buy, may choose to incur a cost in order to access the standard offer of their previous provider in addition to its personalized offer and the standard offer of its rival. The analysis confirms that firms’ second period profits are boosted when consumers are active in this sense (being equal to perfect price discrimination ones when initial market hares do not differ too much) but it reveals that this advantage is dissipated and possibly over-dissipated by the resulting fierce first-period competition for the market. Two-period aggregate profits are smaller with active customers provided the consumers are naive and/or the firms patient enough. Consumers’ access to both personalized and standard firms’ offers which benefit the oligopolists in mature markets may plausibly hurt them in emergent ones. The equilibrium is shown not to depend on the level of the cost as long as it is below some critical value.
Journal: Applied Economics
Pages: 2292-2307
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102571
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102571
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Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2292-2307
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# input file: RAEC_A_2102572_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Arti Omar
Author-X-Name-First: Arti
Author-X-Name-Last: Omar
Author-Name: P. Krishna Prasanna
Author-X-Name-First: P. Krishna
Author-X-Name-Last: Prasanna
Title: In search of default risk predictors in emerging Asia
Abstract:
The study analyses the potential idiosyncratic factors and their pull and push effects on firm-level default risk using 540 listed and traded Asian firms during the period of 2010–2019. The lucrative returns and investment opportunities in Asian markets invites attention for potential research in this domain. Default risk is derived from the Merton model after adjusting for emerging market vulnerabilities. Using fixed-effect panel data regression modelling, we found that higher solvency and operating efficiency are the key pull factors that keep the firms away from default. In the long run, expansion potential and sustainability are key factors that pull the firms out of default. Conversely, a higher level of expansion potential, idiosyncratic volatility and size-effects push low-grade firms towards default despite having a higher level of operating efficiency. We conclude that low-grade firms must therefore keep a close eye on idiosyncratic factors in order to avoid default.
Journal: Applied Economics
Pages: 2308-2322
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102572
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102572
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# input file: RAEC_A_2102570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinyu Wu
Author-X-Name-First: Xinyu
Author-X-Name-Last: Wu
Author-Name: Michelle Xia
Author-X-Name-First: Michelle
Author-X-Name-Last: Xia
Author-Name: Xindan Li
Author-X-Name-First: Xindan
Author-X-Name-Last: Li
Title: Modelling and forecasting volatility with high-frequency and VIX information: a component realized EGARCH model with VIX
Abstract:
This paper studies the joint use of high-frequency and VIX information to model and forecast volatility. Our framework relies on an extension of the realized EGARCH (REGARCH) model, namely the component REGARCH model with VIX (hereafter REGARCH(C)-VIX). The REGARCH(C)-VIX model facilitates exploitation of the high-frequency and VIX information through the inclusion of realized measure and VIX for modelling and forecasting volatility. Moreover, the model features a component volatility structure, which has the ability to capture the long memory volatility. An empirical investigation with the S&P 500 index shows that the REGARCH(C)-VIX model outperforms a variety of competing models in both empirical fit and out-of-sample volatility forecasting. Our findings provide strong evidence for including the high-frequency and VIX information as well as the component volatility structure to model and forecast volatility.
Journal: Applied Economics
Pages: 2273-2291
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102570
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102570
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Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2273-2291
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# input file: RAEC_A_2102574_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joachim Schleich
Author-X-Name-First: Joachim
Author-X-Name-Last: Schleich
Author-Name: Johannes Schuler
Author-X-Name-First: Johannes
Author-X-Name-Last: Schuler
Author-Name: Matthias Pfaff
Author-X-Name-First: Matthias
Author-X-Name-Last: Pfaff
Author-Name: Regine Frank
Author-X-Name-First: Regine
Author-X-Name-Last: Frank
Title: Do green electricity tariffs increase household electricity consumption?
Abstract:
In this paper we investigate whether households change electricity consumption after they switch to a green electricity tariff. Using metered data of household electricity consumption from a large provider of green electricity in Germany, our quasi-experimental analysis finds that household switching to a green tariff leads to a non-monetary renewable rebound effect of around 7.7%. Further, our findings imply that this renewable rebound effect is persistent over at least four years. These findings are observationally consistent with moral licencing effects which induce households to permanently change their habitual behaviours and/or to acquire additional electricity-consuming technologies. Thus, failure to account for a renewable rebound in policy evaluation may lead to systematically underestimate the costs of achieving energy and climate targets.
Journal: Applied Economics
Pages: 2337-2348
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102574
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102574
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Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2337-2348
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# input file: RAEC_A_2102573_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: EnLu Jiang
Author-X-Name-First: EnLu
Author-X-Name-Last: Jiang
Author-Name: SungMan Yoon
Author-X-Name-First: SungMan
Author-X-Name-Last: Yoon
Author-Name: JungHwa Suh
Author-X-Name-First: JungHwa
Author-X-Name-Last: Suh
Title: Corporate Tax Rate Cut on the Cost Behavior of High−tech Companies: The Case of China
Abstract:
This study aims to analyse whether there is a cost stickiness phenomenon in which Chinese companies recognize costs early in the years immediately preceding the tax rate cut (hereinafter TRC) in order to minimize tax burden, and to investigate whether high-tech companies with large TRCs have a higher level than general companies. The analysis results can be summarized as follows: First, there is a phenomenon of cost stickiness in Chinese companies in the year immediately before the TRC. Second, before the 2008 TRC in China, the level of cost stickiness of high-tech companies was not statistically higher than that of general companies. The results of this study provide the following implications that Chinese companies use cost as an incentive to minimize their tax burden. Companies can use appropriate surplus resources as a buffer against environmental changes and actively utilize inefficient resource allocation to promote innovative R&D and improve corporate performance.
Journal: Applied Economics
Pages: 2323-2336
Issue: 20
Volume: 55
Year: 2023
Month: 04
X-DOI: 10.1080/00036846.2022.2102573
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102573
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Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2323-2336
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# input file: RAEC_A_2103082_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Doha Kim
Author-X-Name-First: Doha
Author-X-Name-Last: Kim
Author-Name: Jesun Yeon
Author-X-Name-First: Jesun
Author-X-Name-Last: Yeon
Author-Name: Joo Hee Kim
Author-X-Name-First: Joo Hee
Author-X-Name-Last: Kim
Author-Name: Minwoo Kim
Author-X-Name-First: Minwoo
Author-X-Name-Last: Kim
Author-Name: Yeosol Song
Author-X-Name-First: Yeosol
Author-X-Name-Last: Song
Author-Name: Daeho Lee
Author-X-Name-First: Daeho
Author-X-Name-Last: Lee
Title: Different effects of working hour reduction on labor-intensive and knowledge-intensive industries in the era of artificial intelligence: a meta-frontier approach
Abstract:
Working hours have been discussed for over 150 years from a variety of perspectives such as worker health, corporate productivity, and job market stability. Despite extensive research in working hour reduction, there is limited evidence on the effect of hours worked by industry characteristics. This study examined the relationship between technical efficiency and working hours. For this, 514 Korean companies were divided into labour-intensive and knowledge-intensive industries, and changes in technical efficiency in each industry were investigated after implementing a working hour reduction policy. The efficiency of the labour-intensive industry improved after a reduction of working hours, whereas that of the knowledge-intensive industry decreased. These results imply that working hours should vary by industry. This study empirically illustrates the effect of reducing working hours and suggests practical guidelines for each country and company to increase technical efficiency by industry.
Journal: Applied Economics
Pages: 2493-2504
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103082
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103082
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# input file: RAEC_A_2103081_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vasilios Kanellopoulos
Author-X-Name-First: Vasilios
Author-X-Name-Last: Kanellopoulos
Title: The effect of localized social capital on new firm formation at the regional level: a spatial lag explanatory (SLX) application
Abstract:
This study examines the effects of localized social capital on new firm formation rates in Greek regions. It uses a path-dependent conceptual framework and spatial econometric techniques to further explain the importance of localized social capital effects on new firm formation rates at the regional level. The IV/2SLS time effects econometric results suggest that the basic components of social capital related to social networks, and social norms have positive and significant effects on new firm formation in a regional context. The impact of social trust is positive and insignificant while, in some cases, it turns to positive and significant. By contrast, the effect of institutional trust is always negative and significant. In addition, the application of a spatial lag explanatory model (SLX) reveals that the basic components of social capital, such as social networks, social trust, and social norms that go to three and five more neighbouring regions have an insignificant influence on new firm formation rates at the regional level. Therefore, the positive social capital effects on new firm formation in a regional context produced in this study appear to be localized remaining within regions.
Journal: Applied Economics
Pages: 2477-2492
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103081
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103081
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# input file: RAEC_A_2103079_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tony Cavoli
Author-X-Name-First: Tony
Author-X-Name-Last: Cavoli
Author-Name: Sasidaran Gopalan
Author-X-Name-First: Sasidaran
Author-X-Name-Last: Gopalan
Author-Name: Ramkishen S. Rajan
Author-X-Name-First: Ramkishen S.
Author-X-Name-Last: Rajan
Title: Is Exchange Rate Centred Monetary Policy Asymmetric? Empirical Evidence from Singapore
Abstract:
The effectiveness of an exchange rate based monetary policy rule for Singapore given the highly open nature of the economy has been empirically well documented in the literature. However, what is somewhat less recognized is that monetary policy in Singapore has historically been conducted in an asymmetric manner where there is willingness to allow for greater appreciation of the nominal effective exchange rate (NEER) during boom periods to curb inflation but not to implement a policy of depreciation during a downturn, i.e. a strong Singapore dollar (SSD) policy. We contribute to the literature by being one of the first to test the empirical validity of a SSD policy. We do so by estimating a Taylor style monetary policy rule (MPR) for Singapore with NEER as the main instrument of policy using monthly data for 2000 to 2019. Our empirical findings suggest that Singapore’s MPR appears to react asymmetrically to inflation and output above a particular threshold but is predominantly concerned with inflation in the policy rule, offering evidence of a policy position consistent with SSD in that it allows for disproportionately higher NEER in boom periods.
Journal: Applied Economics
Pages: 2438-2454
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103079
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103079
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# input file: RAEC_A_2103080_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Changyang Liu
Author-X-Name-First: Changyang
Author-X-Name-Last: Liu
Author-Name: Tian Yue
Author-X-Name-First: Tian
Author-X-Name-Last: Yue
Author-Name: Yugang Yin
Author-X-Name-First: Yugang
Author-X-Name-Last: Yin
Title: Does a firm’s geographic feature matter for stock returns? Evidence from the Chinese A-share market
Abstract:
This study reveals a new stock return predictability that relates to firms’ geographic features in the Chinese A-share market. Using a text-based measure of the degree of localness to capture the economic ties between firms and their provinces, we find that low-localized firms are slow to incorporate local information into stock prices. Specifically, there is a significant lead-lag effect in stock returns between high- and low-localized firms in the same region, and a portfolio that exploits this pattern can generate a monthly alpha of about 1%. This effect cannot be explained by geographic or industry return momentum, investors’ inattention, and limits to arbitrage. We find that this return predictability is mainly driven by investors’ limited information-processing capacity, and the evidence of predictability is stronger among low-localized firms with highly complicated business structures.
Journal: Applied Economics
Pages: 2455-2476
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2103080
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2103080
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Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2455-2476
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# input file: RAEC_A_2102576_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ana Gamarra Rondinel
Author-X-Name-First: Ana
Author-X-Name-Last: Gamarra Rondinel
Author-Name: María Arrazola
Author-X-Name-First: María
Author-X-Name-Last: Arrazola
Author-Name: José Félix Sanz-Sanz
Author-X-Name-First: José Félix
Author-X-Name-Last: Sanz-Sanz
Title: The elasticity of taxable income of low-income earners: bunching evidence from Spain
Abstract:
This paper estimates the elasticity of taxable income (ETI) for Spain. Using the bunching approach and administrative tax data from 2008 to 2017, we find evidence of bunching at the first tax kink (ETI = 0.7) and missing mass around the second tax kink (ETI = 0.4). Even though we detect heterogeneity in responses depending on taxpayers’ personal and family circumstances, bunching and missing mass are mostly related to labour income. The main mechanism of response for bunching is associated with the use of certain deductions and allowances, while missing mass is driven by the phase-out region of a targeted deduction for labour income.
Journal: Applied Economics
Pages: 2389-2412
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2102576
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102576
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Handle: RePEc:taf:applec:v:55:y:2023:i:21:p:2389-2412
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# input file: RAEC_A_2102577_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Zhenjun Li
Author-X-Name-First: Zhenjun
Author-X-Name-Last: Li
Author-Name: Chen Ma
Author-X-Name-First: Chen
Author-X-Name-Last: Ma
Title: Public governance and corporate innovation: evidence from a quasi-natural event in China
Abstract:
Using a unique quasi-natural event, i.e. gangdom and evil forces (hereafter, GEs) elimination in China, we investigate the relationship between the public governance proxied by GEs elimination and corporate innovation based on the data of Chinese listed firms from 2013 to 2021. The results show that the GEs elimination leads to a 0.39% increase in corporate innovation investment. Quantitatively, the increase is approximately equivalent to 4.42 million yuan for a firm of median innovation investment. Furthermore, we find that the GEs elimination increases corporate innovation through two possible channels: relieving financing constraints and intensifying market competition. In addition, we also reveal that the effects of GEs elimination on corporate innovation are stronger in firms located in a better marketization environment and a stronger Intellectual Property Rights (IPR) protection environment. Our main results pass a series of robustness tests and endogeneity issues.
Journal: Applied Economics
Pages: 2413-2437
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2102577
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102577
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# input file: RAEC_A_2102575_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yahui Yang
Author-X-Name-First: Yahui
Author-X-Name-Last: Yang
Author-Name: Zhe Peng
Author-X-Name-First: Zhe
Author-X-Name-Last: Peng
Author-Name: Jai-Won Ryou
Author-X-Name-First: Jai-Won
Author-X-Name-Last: Ryou
Title: What determines the long-term volatility of the offshore RMB exchange rate?
Abstract:
China has been promoting the internationalisation of the RMB for two decades. As a result, its offshore foreign exchange market has been substantially revitalised, despite that China’s capital market remains partially open. The movements of offshore exchange rates can provide crucial clues to understanding the offshore market structure and the effects of interventions by Chinese monetary authorities. Using the GARCH-MIDAS model, this paper examines how the degree of openness and economic fundamentals – both observed and unobserved – affect the long-term volatility of offshore exchange rates. We find that, first, trade openness attenuates the long-term volatility, while financial openness has no effect. Specifically, the use of bilateral currency swap agreements and the relaxation of capital control are associated with lower volatility, while stock market connect programs tend to increase the volatility. Second, observed fundamentals, including relative measures for growth, interest rate, and money supply, have significant negative effects on offshore volatility. Third, although economic policy uncertainty and market risk affect long-term volatility, liquidity does not appear to be a culprit of volatility. In terms of FX interventions, direct intervention decreases the volatility, while oral intervention increases volatility.
Journal: Applied Economics
Pages: 2367-2388
Issue: 21
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2102575
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2102575
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# input file: RAEC_A_2104803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yu Yang
Author-X-Name-First: Yu
Author-X-Name-Last: Yang
Author-Name: Weiliang Su
Author-X-Name-First: Weiliang
Author-X-Name-Last: Su
Title: Does anti-poverty intervention strengthen mental resilience? Evidence from the COVID-19 shock on targeted poverty alleviation program in China
Abstract:
Resilience is beneficial for poor households to overcome the negative shocks and shake off the poverty trap completely in the long run. In this article we evaluate the impact of poverty alleviation intervention on mental resilience by exploiting the natural experiment of the COVID-19 shock. Using the survey data collected in early March 2020 from underdeveloped region in West China, we address the impact of targeted poverty alleviation program (TPAP) on confidence level of off-farm and total income recovery using the difference-in-difference method. We find that the program enhances mental resilience for the out of poverty households rather than the in poverty households, especially in terms of confidence level of off-farm income recovery. In addition, we also find that proactivity of employment takes account of the impact of TPAP on confidence level of off-farm income recovery.
Journal: Applied Economics
Pages: 2725-2739
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2104803
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2104803
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# input file: RAEC_A_2106031_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Cheolbeom Park
Author-X-Name-First: Cheolbeom
Author-X-Name-Last: Park
Title: Optimal salary inequality for team performance: evidence from National Football League data
Abstract:
Using salary data for players in the National Football League, I examine empirically the relationship between salary inequality and team performance under dynamic panel regressions. Main findings are: 1) the relationship between salary inequality and team performance is robustly hump-shaped, 2) the optimal Gini index to maximize the number of wins in a regular season is approximately 0.71 from estimates with all players’ salary data and ranges between 0.52 and 0.56 with players on rosters. These results imply that neither perfect equality nor perfect inequality in salary distribution is beneficial to team performance.
Journal: Applied Economics
Pages: 2773-2787
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2106031
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2106031
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# input file: RAEC_A_2106033_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xueqing Liu
Author-X-Name-First: Xueqing
Author-X-Name-Last: Liu
Author-Name: Kunpeng Zhang
Author-X-Name-First: Kunpeng
Author-X-Name-Last: Zhang
Author-Name: Yayun Ren
Author-X-Name-First: Yayun
Author-X-Name-Last: Ren
Title: Does climate warming affect labour productivity in emerging economies?—Evidence from Chinese-listed firms
Abstract:
In this study, we match the weather data at the prefecture-level city level in China with the data of listed firms in China, and examine the impact of high-temperature weather on the labour productivity and firm response strategies. We find that high-temperature weather is negatively correlated with labour productivity. The impact is more pronounced in Non-SOEs, heat-sensitive industries, and in the southern region. The additional analysis showed that firms can alleviate the negative impact of high-temperature weather by increasing employee compensation, and carrying out digital transformation. High-temperature weather prompts firms to reduce the number of blue-collar occupations and increase the number of white-collar occupations. This study highlights the urgency of the impact of current climate warming on emerging economies from the perspective of employees, enriches the cross-study of labour and climate economics, and provides suggestions for firms to alleviate the negative impact of high-temperature weather and improve production efficiency.
Journal: Applied Economics
Pages: 2801-2814
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2106033
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2106033
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# input file: RAEC_A_2106032_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jithin P
Author-X-Name-First: Jithin
Author-X-Name-Last: P
Author-Name: Sania Ashraf
Author-X-Name-First: Sania
Author-X-Name-Last: Ashraf
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: Does global value chain participation induce economic growth? Evidence from panel threshold regression
Abstract:
We investigate the threshold effects of GVC participation and its disaggregated level (forward and backward participation) on economic growth for 62 economies for the period 2000–2018. Our paper is one of the first to analyse the multiple regime effects of GVC participation on economic growth. We find that GVC participation positively impacts economic growth in a country with higher economic growth in both the aggregate and disaggregate analysis. Contemporaneously, it is negatively associated with economic growth in countries with lower economic growth. The coefficient value of forward participation for lower growing economies is higher in the first and second regime than the backward participation, which implies that forward participation has more deleterious effects on economic growth in the less developed and developing economies. The growth effects of forward and backward participation indicate that both have different effects on economic growth in the moderate growing economies, which implies that the direction of GVC participation does matter in determining economic growth in the moderate growing economies.
Journal: Applied Economics
Pages: 2788-2800
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2106032
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2106032
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# input file: RAEC_A_2107163_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yong-Kyun Bae
Author-X-Name-First: Yong-Kyun
Author-X-Name-Last: Bae
Title: Vehicle Owners’ Corrective Behaviour in American Automobile Recalls
Abstract:
In this paper, we study vehicle owner behavior in response to automobile recalls in the US by examining data on recall correction rates. We address three research questions. First, do owner notification letters effectively lead to vehicle owners’ corrective behavior? Second, do vehicle owners take cost-saving actions using relevant information in recall letters? Third, can we identify vehicle owners’ behavioral differences in responding to recall issuance? We find evidence that vehicle owners respond to riskier defects more actively. In particular, if recall letters contain alerting words such as ‘death’, then the correction rates of those recalls are higher. Furthermore, the correction rate for recall letters with the expression ‘free of charge’ is higher. Heterogeneous vehicle owners behave differently: some owners immediately return their vehicles for repairs regardless of the risks their vehicles have, while others procrastinate their corrective actions and respond to recalls only when they believe that the defects are risky. We conclude that owner notification letters play an important role in raising correction rates.
Journal: Applied Economics
Pages: 2815-2833
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107163
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107163
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# input file: RAEC_A_2105299_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alba Del Villar
Author-X-Name-First: Alba
Author-X-Name-Last: Del Villar
Title: Regional income divergence and economic development in Africa: is Kuznets right?
Abstract:
This paper studies the relationship between economic development and within-country income inequality using satellite night-light data for a panel of 49 African countries. We highlight three worrisome facts describing regional income disparities in Africa, which rank among the highest in the world, they are persistent, and they have increased 2.16% annually over the period 1992–2012. Our instrumental variable (IV) results confirm the existence of a regional Kuznets curve characterized by an inverted U curve, implying that although economic progress increases regional income inequalities at first, this positive link eventually flats out at a certain level of GDP per capita (2200 constant USD) and turns to reduce income inequality as further as GDP per capita still increases. We also find that the positive impact of total trade on regional income inequalities disappears once we account for potential endogeneity issues. Aid flows, FDI, industry, oil rents, government share, and institutions present positive correlations and reinforce our main results. Our conclusions should raise the concern for policymakers and economists to enhance policies towards a more prosperous, inclusive, and sustainable economic future in Africa, especially in the least developed countries.
Journal: Applied Economics
Pages: 2755-2772
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2105299
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2105299
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# input file: RAEC_A_2104804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Ioannis Chatziantoniou
Author-X-Name-First: Ioannis
Author-X-Name-Last: Chatziantoniou
Author-Name: David Gabauer
Author-X-Name-First: David
Author-X-Name-Last: Gabauer
Title: Dynamic connectedness between COVID-19 news sentiment, capital and commodity markets
Abstract:
This study investigates the dynamic transmission mechanism between COVID-19 news sentiment (Google Trends Index), and S&P100, crude oil and gold volatility indices using the recently developed time-varying parameter vector autoregressive (TVP-VAR)-based extended joint connectedness approach. This framework corrects for the Generalized Forecast Error Variance Decomposition (GFEVD) normalization problem. The obtained empirical results suggest that dynamic total connectedness is heterogeneous over time and severely affected by COVID-19. More importantly, we identify COVID-19 news sentiment to be the main driver of spillover shocks indicating that it is indeed an important predictor of the volatility indices employed in our study. Thus, our findings have important implications for policymakers, private investors, as well as for portfolios and risk managers.
Journal: Applied Economics
Pages: 2740-2754
Issue: 24
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2104804
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2104804
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# input file: RAEC_A_2107610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Syed Kanwar Abbas
Author-X-Name-First: Syed Kanwar
Author-X-Name-Last: Abbas
Title: Asymmetry in the regimes of inflation and business cycles:the New Keynesian Phillips curve
Abstract:
Employing a novel instrumental variable method, we provide three findings with the idea of introducing regime switching into the NKPC for Australia, Canada, New Zealand, the United Kingdom and the United States. First, the response of inflation to the driving force is asymmetric in expansion/contraction, and high/low inflation regimes. The switch between regimes changes the inflation dynamics, thus changing the trade-off between stabilizing inflation and the output gap. Second, price stickiness changes in regimes. The price rigidity explains the inflation-output gap and the inflation-law of one price gap relationship across regimes. Third, inflation dynamics are more forward-looking in the expansionary regime. These results yield the implications of targeting deviations from the law of one price for stabilizing inflation and business cycles.
Journal: Applied Economics
Pages: 2875-2888
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107610
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107610
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# input file: RAEC_A_2107987_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ma Deshui
Author-X-Name-First: Ma
Author-X-Name-Last: Deshui
Author-Name: Ahsan Akbar
Author-X-Name-First: Ahsan
Author-X-Name-Last: Akbar
Author-Name: Bilal
Author-X-Name-First:
Author-X-Name-Last: Bilal
Title: Monetary policy, assets mispricing and share pledge: empirical evidence from A-share listed companies of China
Abstract:
Based on the influencing factors of share pledging, this paper discusses the influence of asset mispricing on the share pledging decision-making of controlling shareholders and examines the differences in the impact of different monetary policies using China’s A-share listed firms from 2007 to 2018. This study found that when the share price is overvalued, the share pledging enthusiasm of controlling shareholders increases, and the scale of share pledging expands. Further examination found that the enthusiasm and the scale of share pledge of controlling shareholders increase significantly with the increase in the overvaluation level of the share price. When the monetary policy tends to be loose or the interest rate is low, the enthusiasm for share pledging increases, and the scale of share pledge expands, which is more obvious when the stock price is overvalued. This study indicates that the capital market is not perfect, and insiders represented by controlling shareholders can identify investors’ cognitive biases, respond to asset mispricing in time, and raise more funds.
Journal: Applied Economics
Pages: 2889-2901
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107987
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107987
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# input file: RAEC_A_2107165_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hala Abou-Ali
Author-X-Name-First: Hala
Author-X-Name-Last: Abou-Ali
Author-Name: Ronia Hawash
Author-X-Name-First: Ronia
Author-X-Name-Last: Hawash
Author-Name: Rahma Ali
Author-X-Name-First: Rahma
Author-X-Name-Last: Ali
Author-Name: Yasmine Abdelfattah
Author-X-Name-First: Yasmine
Author-X-Name-Last: Abdelfattah
Author-Name: Megahed Hassan
Author-X-Name-First: Megahed
Author-X-Name-Last: Hassan
Title: Is it getting too hot to work? Investigating the impact of climate change on labour supply in the MENA region
Abstract:
Climate change and its expected consequences have been a growing global concern. This study aims at examining the impact of changes in climate indicators on labour supply in the Middle East and North Africa (MENA) region. We use different data sets including the Integrated Labour Market Panel Survey of Egypt, Jordan, and Tunisia spanning the period from 2006 to 2018 matched with a globally gridded climate data set to test the impact of changes in temperature, humidity, and precipitation on labour weekly working hours. We differentiate between ‘high-risk’ groups engaged in economic activities with higher exposure to climate and ‘low-risk’ groups with relatively less exposure to climate. Our results indicate that changes in temperature and humidity have a significant impact on labour working hours, whereas precipitation has no significant effect; yet the marginal impact of changes in temperature and humidity differs between ‘high-risk’ and ‘low-risk’ groups. The results show that working hours are impeded by heat and humidity after a specific threshold.
Journal: Applied Economics
Pages: 2847-2862
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107165
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107165
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# input file: RAEC_A_2107988_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tommaso Agasisti
Author-X-Name-First: Tommaso
Author-X-Name-Last: Agasisti
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Title: Local governments’ efficiency and its heterogeneity – empirical evidence from a stochastic frontier analysis of Italian municipalities 2010-2018
Abstract:
This paper investigates the efficiency of Italian local governments using Stochastic Frontier Analysis for the years 2010–2018. As a dependent variable of the cost function, we consider the total current expenditure for producing six ‘essential’ local public services: education (ancillary services), waste management, general administration, local police, public roads and planning, and social services. As outputs, we employ indicators for each of the six services in the multi-output cost function. In an alternative model specification, we use a composite indicator for the total output volume. Thus, we estimate a global efficiency score for each local government, for each year. The findings reveal that the total expenditure declined over time, more than proportionally than the contraction of output produced. Therefore, the global efficiency of Italian municipalities is estimated to be higher in 2018 than it was in 2010. Moreover, there is evidence of substantial scale economies and congestion effects, with municipalities with around 10,000 inhabitants being more efficient than their smaller and larger counterparts. Lastly, on average, local governments are more efficient in providing public services in the Northern regions than in the Southern ones, although efficiency does not decline monotonically moving South.
Journal: Applied Economics
Pages: 2902-2927
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107988
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107988
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# input file: RAEC_A_2142509_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Duong Lam Anh Tran
Author-X-Name-First: Duong Lam Anh
Author-X-Name-Last: Tran
Author-Name: Ivan Deseatnicov
Author-X-Name-First: Ivan
Author-X-Name-Last: Deseatnicov
Title: Technology level and the global value chain
Abstract:
This paper investigates the role of technology levels in shaping the structure of the global value chain (GVC) at the macro level. We incorporate the Ricardian comparative advantage into the production of intermediate goods involving both snake-and spider-type supply chains to capture the overall GVC integration. We analytically find that the country with a higher technology level produces the intermediate inputs at production stages involving a higher degree of complexity, which is consistent with the real data. Finally, we calibrate the GVC participation value and wages and document the good fit of our model to the real-world data.
Journal: Applied Economics
Pages: 2928-2943
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2142509
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2142509
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# input file: RAEC_A_2107609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peiran Li
Author-X-Name-First: Peiran
Author-X-Name-Last: Li
Author-Name: Xianghui Yuan
Author-X-Name-First: Xianghui
Author-X-Name-Last: Yuan
Author-Name: Liwei Jin
Author-X-Name-First: Liwei
Author-X-Name-Last: Jin
Title: Government direct intervention and stock market concentration
Abstract:
After the crackdown in 2015, Chinese state-owned capital, also called the ‘national team’ by investors, has become extensively involved in stock market investments. As a form of government direct intervention, state capital in the stock market may have implications for market efficiency and evolution. This study investigates the unbalanced departure of the national team in the aftermath of the crisis: the government no longer directly holds a large number of listed companies’ stocks, but its share in the market has declined little. Using a panel regression covering most stock industries, we find a positive association between national team and industry concentration in the stock market. Often, state-funded holdings may inhibit competition and allow the market to evolve in a more concentrated structure. Our study reveals a new potential negative externality of the Chinese government’s direct intervention in the stock market.
Journal: Applied Economics
Pages: 2863-2874
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107609
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107609
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# input file: RAEC_A_2107164_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abhishek Rohit
Author-X-Name-First: Abhishek
Author-X-Name-Last: Rohit
Author-Name: Raghavendra S. Bhat
Author-X-Name-First: Raghavendra S.
Author-X-Name-Last: Bhat
Title: Explaining rotated linkages between monetary policy and long-term interest rates
Abstract:
Understanding the linkages between monetary policy surprises and long-term interest rates is of immense interest to policymakers and researchers worldwide. In this paper, we investigate this relationship for a large sample of 29 economies and attempt to unravel the possible reasons for rotated linkages between these two variables in a long time-period, i.e., 1979–2019. We provide empirical evidence on exogenous shifts in the preferences of central banks in terms of weightage of inflation to output, altering the behaviour of long-term interest rates. We examine this phenomenon using financial crisis, and positive inflation deviations which may cause such exogenous shifts, and find both to be responsible for rotated linkages. On comparison, we find that the linkages get rotated the most during systemic crisis, followed by banking crisis, and currency crisis in that order. In terms of policy prescriptions, we confirm that central banks can ensure effective monetary transmission to long-term interest rates by having a robust monetary policy framework which encompasses the three pillars of independence and accountability, policy and operational strategy, and communications.
Journal: Applied Economics
Pages: 2835-2846
Issue: 25
Volume: 55
Year: 2023
Month: 05
X-DOI: 10.1080/00036846.2022.2107164
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107164
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# input file: RAEC_A_2107990_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ioana Alexandra Horodnic
Author-X-Name-First: Ioana Alexandra
Author-X-Name-Last: Horodnic
Author-Name: Colin C. Williams
Author-X-Name-First: Colin C.
Author-X-Name-Last: Williams
Author-Name: Rodica Ianole-Cãlin
Author-X-Name-First: Rodica
Author-X-Name-Last: Ianole-Cãlin
Author-Name: Adrian V. Horodnic
Author-X-Name-First: Adrian V.
Author-X-Name-Last: Horodnic
Title: Exploring the illegal practice of under-reporting wages in the construction industry: some lessons from Romania
Abstract:
The aim of this paper is to evaluate the practice of under-reporting wages (and its multifarious forms) in the construction industry, which is a dominant type of undeclared work found in the industry, and how it can be explained and tackled. To do so, a mixed-methods approach is used, including in-depth interviews, focus groups and a representative national survey comprising 1,212 respondents collected during April–May 2021 in Romania, a country with one of the highest shares of undeclared work in the European Union. A logistic regression analysis shows that this practice is not confined to vulnerable groups but is rather an extensive phenomenon. Evaluating how wage under-reporting could be tackled, the finding is that there is no significant relationship between how employees perceive the level of sanction and the risk of detection and their likelihood of participating in wage under-reporting. However, the results reveal the significance of social norms; those who have acquaintances who receive under-reported wages are more likely to engage themselves in this wage arrangement. The implications for theory and practice are then considered.
Journal: Applied Economics
Pages: 2978-2992
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2107990
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107990
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# input file: RAEC_A_2108749_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sara Burrone
Author-X-Name-First: Sara
Author-X-Name-Last: Burrone
Author-Name: Giulia Dingacci
Author-X-Name-First: Giulia
Author-X-Name-Last: Dingacci
Author-Name: Massylla Dia
Author-X-Name-First: Massylla
Author-X-Name-Last: Dia
Author-Name: Baboucar Bamba
Author-X-Name-First: Baboucar
Author-X-Name-Last: Bamba
Author-Name: Vieri Tarchiani
Author-X-Name-First: Vieri
Author-X-Name-Last: Tarchiani
Author-Name: Elisa Grieco
Author-X-Name-First: Elisa
Author-X-Name-Last: Grieco
Author-Name: Carlotta Zini
Author-X-Name-First: Carlotta
Author-X-Name-Last: Zini
Author-Name: Andrea Di Vecchia
Author-X-Name-First: Andrea
Author-X-Name-Last: Di Vecchia
Author-Name: Patrizio Vignaroli
Author-X-Name-First: Patrizio
Author-X-Name-Last: Vignaroli
Title: The role of staple crop production during the Covid-19 outbreak. Evidence for women small producers in Senegal
Abstract:
The Covid-19 outbreak has negatively affected the agri-food system especially in developing countries where most people rely on agriculture. Using primary data, we study the role of staple crop production as a coping strategy during the Covid-19 outbreak. Using a linear probability model, this article assesses the effect of income and food security deterioration perceived as a consequence of Covid-19 on rice investment propensity among 1320 women rice producers in Casamance, Senegal. Our results show that food security deterioration and especially income reduction due to Covid-19 are significantly and positively related to rice investment propensity. The presence of food retailers and the type of household livelihood, farm or nonfarm, dramatically drive the Covid-19 perception effects on rice investment propensity. While women small producers in villages with food retailers slightly increase their propensity to invest in rice, in remote villages lacking food retailers rice production represents an effective coping strategy for those women living in households that depend to a large extent on the market, i.e. those relying on nonfarm income. These results are supported by the strong correlation between limited physical access to the market, due to movement restrictions, and rice investment propensity, especially among households relying on nonfarm income.
Journal: Applied Economics
Pages: 3026-3042
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108749
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108749
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# input file: RAEC_A_2107989_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rafael Kujo Monteiro
Author-X-Name-First: Rafael Kujo
Author-X-Name-Last: Monteiro
Author-Name: Rodolfo Coelho Prates
Author-X-Name-First: Rodolfo Coelho
Author-X-Name-Last: Prates
Author-Name: Leonardo Matsuno Frota
Author-X-Name-First: Leonardo Matsuno
Author-X-Name-Last: Frota
Title: The determinants of player transfers in Brazil: the role of expectations in the football market
Abstract:
The study of the football transfer market is relevant to understanding the clubs’ managerial capacity when they trade their most important assets. So far, the research on football transfers has focused mainly on the movements between European clubs. Thus, it is necessary to expand the analysis to developing countries, particularly those with a strong football tradition. We study the Brazilian professional football transfer market by analysing the transfers between top Brazilian clubs from 2018 to 2020. We use a two-step Heckman correction to account first for variables that affect the probability of a transfer and later, the actual transfer fee. We include an innovative index to capture the players’ ability to perform according to the specialists’ expectations. Our results show that besides appreciating the specific characteristics of the player such as age and nationality, the Brazilian market also considers the capacity of a player to fulfill previous expectations when deciding who is transferred and for what price. Finally, the remaining time of the contract and the recent transfer history of the player also affect transfer movements in Brazil, along with the seller club’s performance.
Journal: Applied Economics
Pages: 2964-2977
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2107989
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107989
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# input file: RAEC_A_2123102_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Larisa Smirnykh
Author-X-Name-First: Larisa
Author-X-Name-Last: Smirnykh
Author-Name: Evgeniya Polyakova
Author-X-Name-First: Evgeniya
Author-X-Name-Last: Polyakova
Title: The human capital and income of immigrants: evidence from Russia
Abstract:
This study examines how immigration flows caused by the disintegration of states and globalisation change the composition of the labour force and how human capital is transferred from countries of the former Soviet Union to Russia. We estimate the contribution of imperfect human capital transferability to explaining the immigrant–native income differentials by using the Russian Longitudinal Monitoring Survey of 2009–2012. The findings reveal that the income of foreign-born people who moved before the disintegration of the USSR is not significantly different from the income of native-born citizens. In contrast, foreign-born groups who immigrated to Russia after the disintegration of the USSR have lower incomes than the native-born group. In addition, the income premium on education and labour experience received in host countries of the foreign-born group is lower compared to the income premium on education and labour experience received in Russia. An important factor explaining the difference in income between natives and foreign-born people who moved to Russia after the collapse of the USSR is the imperfection in the mechanism of human capital transferability.
Journal: Applied Economics
Pages: 2945-2963
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2123102
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123102
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# input file: RAEC_A_2108750_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zehua Shi
Author-X-Name-First: Zehua
Author-X-Name-Last: Shi
Title: Do classroom teachers matter for academic achievement of students? Evidence from random assignment of students to teachers in China
Abstract:
In China’s middle schools, each class is assigned both subject teachers who only instruct students on specific course and one classroom teacher who not only teaches in class but also provides out-class-support. This study evaluates whether classroom teachers are more effective than subject teachers in improving students’ academic performance. To examine the causal effect of the classroom teacher, I take the advantage of data that students are randomly assigned to classes in middle schools in China and exploit the within-teacher variation given a teacher acting as a classroom teacher for his or her own class but also giving lectures to other class(es) as a subject teacher in one term in China. The findings show that a classroom teacher has a significant positive effect on the students’ test scores in his or her own class compared with other classes he or she teaches. I further investigate the possible mechanisms and find that classroom teachers tend to have more interactions with their own class both inside class and outside class beyond giving lectures than with other classes they teach. This study provides insights for understanding the effect of teacher support outside class on students’ academic outcomes.
Journal: Applied Economics
Pages: 3043-3061
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108750
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108750
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# input file: RAEC_A_2107991_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jin Wook Kim
Author-X-Name-First: Jin Wook
Author-X-Name-Last: Kim
Author-Name: Cheong Kyu Park
Author-X-Name-First: Cheong Kyu
Author-X-Name-Last: Park
Title: Can ESG Performance Mitigate Information Asymmetry? Moderating Effect of Assurance Services
Abstract:
This study examines whether ESG performance reduces information asymmetry and whether assurance services have a moderating effect on the association between ESG performance and information asymmetry. Given the increasing importance and benefits of ESG, examining how ESG performance improves the information environment is a critical question. Using ESG performance data, this study employs a panel data analysis of a large set of U.S. companies with 1,294 observations that are one-to-one matched between assured and unassured groups. The findings indicate that ESG performance reduces information asymmetry and that assurance services have a moderating effect on the negative relationship between ESG performance and information asymmetry. This study makes several contributions to the ESG literature by providing new evidence on ESG performance, employing the moderating variable of assurance services, and minimizing selection bias with propensity score matching. These findings have implications for the professionals and practitioners for information credibility of ESG and assurance services.
Journal: Applied Economics
Pages: 2993-3007
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2107991
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2107991
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# input file: RAEC_A_2108748_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lanfang Deng
Author-X-Name-First: Lanfang
Author-X-Name-Last: Deng
Author-Name: Haizheng Li
Author-X-Name-First: Haizheng
Author-X-Name-Last: Li
Author-Name: Zhiqiang Liu
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Liu
Title: The impact of family co-residence and childcare on children’s cognitive skills
Abstract:
We investigate the impact of family co-residence structure and allocation of major childcare responsibility across generations on child cognitive development. Using data from China, we find that children living in multigenerational families with grandparents as the main caregiver generally perform better in cognitive tests, while children who live only with their parents and children who live only with their grandparents (the so-called left-behind children) do not show a significant difference in their cognitive performance. Moreover, we find that the effect of family environment differs between boys and girls. We also find suggestive evidence that family environment affects child cognitive development through several behavioural factors indicative of intrafamily interactions.
Journal: Applied Economics
Pages: 3008-3025
Issue: 26
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108748
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108748
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# input file: RAEC_A_2108753_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mahdi Shahrazi
Author-X-Name-First: Mahdi
Author-X-Name-Last: Shahrazi
Author-Name: Saman Ghaderi
Author-X-Name-First: Saman
Author-X-Name-Last: Ghaderi
Author-Name: Bahram Sanginabadi
Author-X-Name-First: Bahram
Author-X-Name-Last: Sanginabadi
Title: Commodity prices and inflation: an application of structural VAR
Abstract:
The potential influence of global commodity prices on consumer price inflation has been a concern of researchers and policymakers for decades. Even though a body of literature has investigated such connections, the results are mixed. This study uses a structural vector autoregressive (SVAR) model to investigate the impact of global commodity prices on Iran’s inflation over the 2009:1-2018:11 period. We have included commodity price, exchange rate, and stock returns as explanatory variables in our model. Based on the findings of our long-run multiplier matrix the response of inflation to the commodity price shocks is positive and statistically significant. In other words, global commodity prices increase Iranian inflation. Also, the results suggest that the explanatory power of commodity price shocks in inflation fluctuations is higher than those of exchange rate and stock returns in the long run.
Journal: Applied Economics
Pages: 3110-3120
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108753
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108753
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# input file: RAEC_A_2109581_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kunal Saha
Author-X-Name-First: Kunal
Author-X-Name-Last: Saha
Author-Name: Vinodh Madhavan
Author-X-Name-First: Vinodh
Author-X-Name-Last: Madhavan
Author-Name: G. R. Chandrashekhar
Author-X-Name-First: G. R.
Author-X-Name-Last: Chandrashekhar
Title: Relationship between ETFs and underlying indices: a fractional cointegration approach
Abstract:
This article analyzes the long-run relationship between domestic equity Index ETFs and their respective underlying indices in various markets. In doing so, we study the inter-relationship between these ETFs and their underlying equity indices using the ‘traditional’ Cointegration (CVAR) and Fractional Cointegration (FCVAR) models. The FCVAR model is an extension of CVAR model that is geared towards capturing long memory in a multivariate framework. We examine if FCVAR is superior to the CVAR framework in terms of in-sample fit and out-sample forecasting performance. Our findings establish the presence of fractional cointegration between ETFs and their indices. However, our test outcomes are highly sensitive to model specifications and timelines considered for estimation. Due to the dynamic nature of such cointegration relationship, practitioners are nudged to exercise caution while engaging in hedging and pairs trading that involve ETFs. This is because such trades are bound to be premised on selective inferences drawn from certain multivariate model specifications, and hence, may not be generalizable across all model specifications.
Journal: Applied Economics
Pages: 3184-3193
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2109581
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2109581
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# input file: RAEC_A_2109578_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Matteo Migheli
Author-X-Name-First: Matteo
Author-X-Name-Last: Migheli
Author-Name: Donatella Saccone
Author-X-Name-First: Donatella
Author-X-Name-Last: Saccone
Title: Some new evidence on economic freedom and income distribution
Abstract:
While the extant literature shows that various indices of economic freedom display a positive relationship with the level of income inequality, it is unclear who are the winners and, in particular, the losers. For this reason, an analysis based on deciles and top percentiles helps to deepen the understanding of this issue. Starting from this consideration, the paper adds new evidence on the relation between economic freedom and income distribution by analysing a panel of 70 developing and developed countries for the period 1980–2014. The effects of economic freedom on income shares by deciles and top percentiles are estimated through an instrumental-variable approach ruling out potential reverse causality. Results show that economic freedom increases the income shares of the percentiles included in the top decile, eroding the income of the middle and, especially, upper-middle segments. The poor, instead, appear to be unaffected.
Journal: Applied Economics
Pages: 3154-3169
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2109578
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2109578
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# input file: RAEC_A_2109580_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Deyun Xiao
Author-X-Name-First: Deyun
Author-X-Name-Last: Xiao
Author-Name: Zhiqiang Chen
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Chen
Title: The more struggling, the happier?——Analysis based on two dimensions of social equity
Abstract:
Based on the data of CGSS (2015), the paper constructs an intermediary effect model and a moderating effect model to analyse the impacts of individual effort, opportunity equity(OPEQ), and outcome equity(OCEQ) on subjective well-being(SWB). We found: (1) Individual effort and OPEQ can both enhance SWB, and OPEQ plays a negative moderating role, which is not significant for the low-income strata. (2) The relationship between OCEQ and SWB is inverted U-shaped. The low-income group has a stronger tolerance to outcome inequity, and it has an inverted U-shaped regulation in the process of individual efforts to affect SWB, which is not reflected in the high-income class. (3) In the process of individual efforts affecting SWB, OPEQ and OCEQ both have mediating effects, which are not significant in the high-income class. (4) In terms of intergenerational relations, parents’ education can significantly improve SWB and negatively regulate the relationship between individual effort and SWB, family status at the age of 14 and SWB were significantly negatively correlated.
Journal: Applied Economics
Pages: 3170-3183
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2109580
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2109580
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# input file: RAEC_A_2108752_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: George Marian Aevoae
Author-X-Name-First: George Marian
Author-X-Name-Last: Aevoae
Author-Name: Alin Marius Andrieș
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieș
Author-Name: Steven Ongena
Author-X-Name-First: Steven
Author-X-Name-Last: Ongena
Author-Name: Nicu Sprincean
Author-X-Name-First: Nicu
Author-X-Name-Last: Sprincean
Title: ESG and systemic risk
Abstract:
How do changes in Environmental, Social and Governance (ESG) scores influence banks’ systemic risk contribution? Using a dynamic panel model, we document a beneficial impact of the ESG Combined Score and Governance pillar on banks’ contribution to system-wide distress analysing a panel of 367 publicly listed banks from 47 countries over the period 2007–2020. Stakeholder theory and theory relating social performance to expected returns in which enhanced investments in corporate social responsibility mitigate bank-specific risks explain our findings. However, only better corporate governance represents a tool in reducing bank interconnectedness and maintaining financial stability. The results are robust to alternative measures of systemic risk, both contribution and exposure, as well as when estimating a static model. Our findings stress the importance of integrating banks’ ESG disclosure into regulatory authorities’ supervisory mechanisms as qualitative information.
Journal: Applied Economics
Pages: 3085-3109
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108752
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108752
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# input file: RAEC_A_2108754_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christophe Desagre
Author-X-Name-First: Christophe
Author-X-Name-Last: Desagre
Author-Name: Paolo Mazza
Author-X-Name-First: Paolo
Author-X-Name-Last: Mazza
Author-Name: Mikael Petitjean
Author-X-Name-First: Mikael
Author-X-Name-Last: Petitjean
Title: Crypto market dynamics in stressful conditions
Abstract:
Understanding market liquidity and trading dynamics in one of the most innovative and volatile markets in the world, is crucial from the standpoint of both regulators and investors. In contrast to stocks, very little is known about the functioning of cryptos around extreme returns (ERs). Using high-frequency order-book and trade data for the 8 most widespread cryptos on 16 trading platforms over three years, we examine the contemporaneous and lagged influence of trading activity and liquidity on the occurrence of extreme returns (ERs) in a logistic regression framework adapted to rare events. Despite its huge volatility, we show that the trading and liquidity dynamics on the crypto market around ERs is not orthogonal to what traditional markets experience in stressful conditions. The number of trades is a particularly robust driver to explain the occurrence of ERs, followed by the relative spread. The same drivers are identified for traditional markets.
Journal: Applied Economics
Pages: 3121-3153
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108754
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108754
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# input file: RAEC_A_2108751_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christian Hutter
Author-X-Name-First: Christian
Author-X-Name-Last: Hutter
Author-Name: Enzo Weber
Author-X-Name-First: Enzo
Author-X-Name-Last: Weber
Title: Labour market effects of wage inequality and skill-biased technical change
Abstract:
This paper analyses the effects of wage inequality on labour market development. Relevant theories are ambiguous, just as public debates. We measure the effects of inequality, skill-biased and skill-neutral technical change on hours, productivity and wages in a novel structural vector error correction framework identified by economically motivated long-run restrictions. The results show that structural inequality shocks have a negative impact on hours, productivity and wages. These effects are particularly pronounced at high inequality levels and for inequality below the median wage. Skill-biased technology shocks reduce – unlike skill-neutral ones – hours but increase inequality, productivity and wages.
Journal: Applied Economics
Pages: 3063-3084
Issue: 27
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2108751
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2108751
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# input file: RAEC_A_2110212_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Juan Carlos Cuestas
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Cuestas
Author-Name: Merike Kukk
Author-X-Name-First: Merike
Author-X-Name-Last: Kukk
Author-Name: Natalia Levenko
Author-X-Name-First: Natalia
Author-X-Name-Last: Levenko
Title: Misalignments in house prices and economic growth in Europe
Abstract:
In this paper we investigate house price misalignments and how they affect the real economy. We estimate the long-term relationship between house prices and the fundamentals that determine long-term house prices for a panel of European countries with dynamic OLS, using data from 2005–2018. We find that income has been the main driver of fundamental house prices in all countries, while the supply of dwellings has calmed the rise in house prices in some of them. We calculate house price misalignments, which are deviations of house prices from the fundamental value, and we employ them in the growth model. The results of the growth regression indicate that house price imbalances amplify business cycles in the short term, but in the long term house price overvaluations slow economic growth down. The findings imply that it is crucial to take measures to stabilize housing cycles.
Journal: Applied Economics
Pages: 3215-3237
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2110212
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2110212
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# input file: RAEC_A_2114990_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Philip Garland Gayle
Author-X-Name-First: Philip Garland
Author-X-Name-Last: Gayle
Author-Name: Jin Wang
Author-X-Name-First: Jin
Author-X-Name-Last: Wang
Author-Name: Shengnan Fang
Author-X-Name-First: Shengnan
Author-X-Name-Last: Fang
Title: The Organic food price premium and its susceptibility to news media coverage: evidence from the US milk industry
Abstract:
This paper investigates the extent to which media coverage on organic dairy issues influences consumers’ willingness to pay (WTP) for the organic attribute of milk. We find that news with contents most often viewed as negative towards organic dairy are more powerful in decreasing consumers’ WTP for the organic attribute of milk compared to the positive WTP impact of news articles with contents most often viewed as positive towards organic dairy. Interestingly, consumers’ increasing exposure to organic dairy news that even take a neutral stance on the organic attribute also increases their WTP for the organic attribute.
Journal: Applied Economics
Pages: 3296-3315
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114990
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114990
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Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3296-3315
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# input file: RAEC_A_2110563_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jude I. Iziga
Author-X-Name-First: Jude I.
Author-X-Name-Last: Iziga
Author-Name: Shingo Takagi
Author-X-Name-First: Shingo
Author-X-Name-Last: Takagi
Title: An empirical examination of the effect of infrastructure on economic development: a large and heterogeneous panel data analysis
Abstract:
Infrastructure drives economic development. This study investigates to what extent infrastructure and skilled labour affect aggregate output, by analysing large heterogeneous panel data of 130 countries over two decades. We implement an autoregressive distributed lag (ARDL) model to extract the long-run production technology relationship among economic growth, infrastructure, and skilled labour. The complementarity of skilled labour and infrastructure is conducive to skill-biased economic growth. Skill differences account for disparities among workers’ wages worldwide, thereby widening inequalities in income and consequently, living standards. Contrary to previous studies that have used frameworks assuming production function homogeneity across countries, we propose a methodology to identify latent country groups based on the long-run production technology embedded in the ARDL model, using an identification procedure of the unknown group structure in panel models. We select the optimal number of groups by implementing a new information criterion under multiple nuisance parameters and estimate the coefficients of the production functions for each country group. Based on the complementarity estimates of country groups and the estimated country classifications, we find that the effects of infrastructure generated grouped-heterogeneity of growth span across countries in estimated production relationships.
Journal: Applied Economics
Pages: 3255-3270
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2110563
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2110563
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# input file: RAEC_A_2110213_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhiwei Sheng
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Sheng
Author-Name: Luye Ji
Author-X-Name-First: Luye
Author-X-Name-Last: Ji
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Title: The Impact of Pollution Events on the Productivity of Related Industries:A Case Study of Cadmium-Contaminated Industry
Abstract:
This research aims to explore how environmental pollution events affect total factor productivity in related industries in China. The results of the research found that (1) Cadmium-contaminated rice cases had negative impacts on the related industry after a time delay by reducing the production scale and investment in R&D to improve productive efficiency, therefore decreasing the total factor productivity. Rising public awareness significantly expanded the negative impact of environmental pollution events. (2) The more sophisticated environmental regulations at the provincial level, the more obvious the total factor productivity decreased after cadmium-contaminated rice cases. The effect of existing environmental regulations at the municipal and county levels was not satisfactory. (3) Cadmium-contaminated rice cases had a greater negative impact on East and Central China than other regions. The result also indicates cross-regional pollution transfer for the purpose of regulation evasion.
Journal: Applied Economics
Pages: 3238-3254
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2110213
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2110213
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Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3238-3254
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# input file: RAEC_A_2109582_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Robert C. M. Beyer
Author-X-Name-First: Robert C. M.
Author-X-Name-Last: Beyer
Author-Name: Lazar Milivojevic
Author-X-Name-First: Lazar
Author-X-Name-Last: Milivojevic
Title: Dynamics and synchronization of global equilibrium interest rates
Abstract:
Empirical estimates of equilibrium real interest rates are so far mostly limited to advanced economies, since no statistical procedure suitable for a larger set of countries is available. This is surprising, as equilibrium rates have strong policy implications in emerging markets and developing economies as well. Current estimates of the global equilibrium rate rely on only a few countries but estimates for a more diverse set of countries can improve understanding of its dynamics and drivers. This paper uses a model and estimation strategy that decompose ex-ante real interest rates into permanent and transitory components even with short samples and high volatility. This is done with an unobserved component local level stochastic volatility model, which is used to estimate equilibrium rates for 50 countries with Bayesian methods. Equilibrium rates were lower in emerging markets and developing economies than in advanced economies in the 1980s, similar in the 1990s, and have been higher since 2000. In line with economic integration and rising global capital markets, synchronization has been rising over time and is higher among advanced economies. Equilibrium rates of countries with stronger trade linkages and similar demographic and economic trends are more synchronized.
Journal: Applied Economics
Pages: 3195-3214
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2109582
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2109582
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# input file: RAEC_A_2111023_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: José Valentim Machado Vicente
Author-X-Name-First: José Valentim Machado
Author-X-Name-Last: Vicente
Title: A non-knotty inflation risk premium model
Abstract:
In this article, I estimate the inflation risk premium (IRP) using a low-dimensional arbitrage-free dynamic model through a novel strategy. Instead of modelling the nominal and real yields jointly, I make assumptions about the short-term inflation rate. More specifically, I assume it follows a Gaussian process. This framework has a closed-form expression for IRP. Since inflation yields are not observed, to estimate the model parameters I approximate them by the break-even inflation rate. This approximation works well because the convexity correction is very small. I find that the estimated IRP is strongly correlated with those obtained using surveys or more complex models. Therefore, I provide an easier procedure to obtain IRP, avoiding the cumbersome estimation process of high-order models.
Journal: Applied Economics
Pages: 3271-3278
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2111023
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2111023
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Handle: RePEc:taf:applec:v:55:y:2023:i:28:p:3271-3278
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# input file: RAEC_A_2114989_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kayla Hildebrand
Author-X-Name-First: Kayla
Author-X-Name-Last: Hildebrand
Author-Name: Chanjin Chung
Author-X-Name-First: Chanjin
Author-X-Name-Last: Chung
Author-Name: Tracy A. Boyer
Author-X-Name-First: Tracy A.
Author-X-Name-Last: Boyer
Author-Name: Marco Palma
Author-X-Name-First: Marco
Author-X-Name-Last: Palma
Title: Does change in respondents’ attention affect willingness to accept estimates from choice experiments?
Abstract:
This study conducts a discrete choice experiment to estimate turfgrass producers’ willingness to accept (WTA) values using different logit models and specifications to capture respondents’ attention. We first estimate the mixed logit model and a generalized multinomial logit model with and without eye-tracking variables to demonstrate the importance of accounting for individuals’ differing levels of attention during an experiment. Our study finds that marginal WTA values are biased when individuals’ attention changes are not properly accounted for in the model specification. This finding leads to our second objective, to determine whether attention changes can be fully captured in the absence of eye tracking data by testing six alternative model specifications. All six models are able to detect learning and fatigue effects but are unable to fully capture changes in attention. Of the six alternative models tested, the two models that implement panel data offer more reliable and significant results, suggesting the type of data and model specification used may play an important role in diagnosing attention changes when compared to various heterogeneity models.
Journal: Applied Economics
Pages: 3279-3295
Issue: 28
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114989
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114989
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# input file: RAEC_A_2114994_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joshua Duarte
Author-X-Name-First: Joshua
Author-X-Name-Last: Duarte
Author-Name: João Sousa Andrade
Author-X-Name-First: João Sousa
Author-X-Name-Last: Andrade
Author-Name: Pedro Bação
Author-X-Name-First: Pedro
Author-X-Name-Last: Bação
Title: Dynamic effects of financial development on economic activity
Abstract:
In this article, we provide evidence of the dynamic effects of financial development on a group of key macroeconomic variables, namely, output, consumption, investment, inflation, money, the interest rate and the exchange rate. As the measure of financial development we use a new broad measure of financial development instead of the narrow measures usually employed in the related literature. Another novelty is that we estimate the dynamic effects of financial development on economic activity in the context of a panel vector autoregressive model, comprising 36 countries observed in the period 1983–2019. Our results suggest that financial development has a positive impact on output, investment, and consumption. The results reported in this article also support the proposition that the benefits from financial development are larger in economies where the financial system is market-based. These results survive a battery of robustness checks.
Journal: Applied Economics
Pages: 3329-3346
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114994
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114994
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# input file: RAEC_A_2114998_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hao Wei
Author-X-Name-First: Hao
Author-X-Name-Last: Wei
Author-Name: Linlin Deng
Author-X-Name-First: Linlin
Author-X-Name-Last: Deng
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: The impact of globalization on domestic employment
Abstract:
Immigrants and offshore workers become important disturbing factors of domestic employment in the globalized economy. In this study we build a model with this feature to test how the three groups of workers in the labour force interact using a panel data of 155 countries over the period 1990–2015. We find that while immigrants replaced native workers (especially highly skilled ones), offshore workers who produce intermediate input imports do not. The productivity effect of offshoring is stronger for developed economies while the substitution effect of immigration is stronger for developing countries. Furthermore, the productivity effects of immigration and offshoring are stronger when governments impose less restrictions on international trade and domestic labour market.
Journal: Applied Economics
Pages: 3390-3403
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114998
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114998
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# input file: RAEC_A_2115000_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Debarati Basu
Author-X-Name-First: Debarati
Author-X-Name-Last: Basu
Author-Name: Shabana Mitra
Author-X-Name-First: Shabana
Author-X-Name-Last: Mitra
Author-Name: Nishant Kumar Verma
Author-X-Name-First: Nishant Kumar
Author-X-Name-Last: Verma
Title: Mitigating credit risk: modelling and optimizing co-insurance in loan pricing
Abstract:
Despite large-scale financial development and banks being the most important credit source globally, banking continues to be plagued by asymmetric information. This uncertainty makes credit risk assessment decisions complex and expensive. In this context, we show how discretionary borrower characteristics, such as the borrower’s network (which can co-insure), help mitigate risk and reduce costs by altering lending decisions. The literature on loan pricing remains focused on objective credit scoring models, while the network literature remains empirical, and borrower based. We fill this void by being the first to theoretically model the lender’s internal decision-making problem when borrowers display discretionary default risk-mitigating attributes such as network strength. We find that the interest rate reduces as the network strength increases. As constraints set in and borrowing becomes more competitive, banks rely even more on network information to parse out better borrowers. Finally, banks substitute monitoring effort with network strength for a more feasible interest rate. This will increase lending, even to borrowers outside the banks’ purview earlier.
Journal: Applied Economics
Pages: 3422-3441
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115000
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115000
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# input file: RAEC_A_2114993_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Timo Bettendorf
Author-X-Name-First: Timo
Author-X-Name-Last: Bettendorf
Author-Name: Axel Jochem
Author-X-Name-First: Axel
Author-X-Name-Last: Jochem
Title: TARGET balances in the euro area: the case of Germany
Abstract:
Applying a BVAR model, the present paper first identifies the possible drivers of Germany’s TARGET claims. In this context, in terms of potential causes, a distinction is made between a rise in the global risk assessment, tensions within the euro area, and European monetary policy. It becomes evident that the TARGET flows between 2015 and 2017 can be ascribed in large part to monetary policy and to a minor extent to the risk assessment within the euro area. At the peak of the European debt crisis between 2010 and mid-2012, the TARGET flows were affected by uncertainty in the euro area as a dominant factor, although global factors also played a key role according to the model. The BVAR model we use opens up the possibility of studying the causes of current fluctuations in Germany’s TARGET claims.
Journal: Applied Economics
Pages: 3317-3328
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114993
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114993
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# input file: RAEC_A_2114999_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Kwesi Arthur
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Kwesi Arthur
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: The influence of economic policy uncertainty shocks on art market
Abstract:
We contribute to the literature by studying the impact of economic policy uncertainty shocks on returns in the global art market, the global paintings market and the U.S.A art market from 1998:Q1 to 2018:Q3. Based on the frequency domain Granger causality test and continuous wavelets analysis, the results show that an increase in policy uncertainty shocks significantly reduces returns on art and paintings and that the effect is stronger during extreme volatility periods. Policy implications are derived at the end of the article.
Journal: Applied Economics
Pages: 3404-3421
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114999
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114999
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# input file: RAEC_A_2114996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xi Deng
Author-X-Name-First: Xi
Author-X-Name-Last: Deng
Author-Name: Wenlin Tang
Author-X-Name-First: Wenlin
Author-X-Name-Last: Tang
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Author-Name: Zhanming Xing
Author-X-Name-First: Zhanming
Author-X-Name-Last: Xing
Title: Influencing factors of China’s direct investment in RCEP countries: evidence from panel quantile regression
Abstract:
This article investigates the influencing factors of China’s outward foreign direct investment (OFDI) in RCEP countries across quantiles. We apply a panel quantile regression to seek the factors that influence China’s OFDI in RCEP countries with the most and least OFDI from China. Our findings are outlined as follows. First, influencing factors of China’s OFDI in RCEP countries have significant heterogeneity across quantiles. More specifically, China’s trade exports (EXP) to RCEP countries have the strongest positive impact on promoting China’s OFDI in RCEP countries, and the strongest positive impact of trade exports on China’s OFDI occurs in RCEP countries with less China’s OFDI. Second, The higher the level of political stability (HP) of RCEP countries with more China’s OFDI, the more China’s OFDI they attract, while in RCEP country with the least China’s OFDI and changes in political stability will not have a significant impact on China’s OFDI. Third, in RCEP countries with less China’s OFDI, a higher level of labour resource endowment (LAB) has a stronger effect on attracting China’s OFDI. Overall, our findings provide policymakers more targeted references for tapping the potential of China’s OFDI in RCEP countries.
Journal: Applied Economics
Pages: 3347-3364
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114996
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114996
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# input file: RAEC_A_2114997_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zekeriya Yildirim
Author-X-Name-First: Zekeriya
Author-X-Name-Last: Yildirim
Title: Spillover effects of US uncertainty: does the type of US uncertainty matter?
Abstract:
This study investigates the spillover effects of US uncertainty shocks on 8 emerging market (EM) economies using a two-country VAR model. The study considers four different types of US uncertainty, namely, (i) financial, (ii) macroeconomic, (iii) economic policy and (iv) aggregate uncertainty. Then, the study compares the spillover effects of four US uncertainty measures on EMs. The main findings are as follows: (1) US uncertainty shocks negatively affect EMs. (2) The spillover effects rely on the source of US uncertainty and vary across EMs. (3) EM financial conditions play a significant role in transmitting the effects of US uncertainty shocks to the real economies of EMs. These findings suggest that EM policy-makers should be aware of the sources of US uncertainty shocks and react accordingly to such shocks.
Journal: Applied Economics
Pages: 3365-3389
Issue: 29
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2114997
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2114997
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# input file: RAEC_A_2115450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Makoto Muto
Author-X-Name-First: Makoto
Author-X-Name-Last: Muto
Author-Name: Tamotsu Onozaki
Author-X-Name-First: Tamotsu
Author-X-Name-Last: Onozaki
Author-Name: Yoshitaka Saiki
Author-X-Name-First: Yoshitaka
Author-X-Name-Last: Saiki
Title: Regional Synchronization during Economic Contraction: The Case of the U.S. and Japan
Abstract:
Two decades of studies have found significant regional differences in the timing of transitions in national business cycles and their durations. Earlier studies partly detect regional synchronization during business cycle expansions and contractions in Europe, the United States, and Japan. We examine this possibility by applying a sophisticated method for identifying the time-varying degree of synchronization to regional business cycle data in the U.S. and Japan. The method is prominent in nonlinear sciences but has been infrequently applied in business cycle studies. We find that the degree of synchronization in regional business cycles increased during contractions and decreased during expansions throughout the period under study. Such asymmetry between the contraction and expansion phases of a business cycle will contribute to our better understanding of the phenomenon of business cycles.
Journal: Applied Economics
Pages: 3472-3486
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115450
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115450
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Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3472-3486
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# input file: RAEC_A_2115451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wolfgang Maennig
Author-X-Name-First: Wolfgang
Author-X-Name-Last: Maennig
Author-Name: Steffen Q. Mueller
Author-X-Name-First: Steffen Q.
Author-X-Name-Last: Mueller
Title: Game outcome uncertainty revisited – a clustering analysis of team-specific game attendance predictions
Abstract:
We provide evidence for heterogeneous game outcome uncertainty (GOU) effects across teams in Major League Baseball. Using attendance data from 2013 to 2019, we explore functional data clustering techniques and allow for nonlinear relationships to detect common patterns in predictive margins of team-specific winning probability. As a central result, we identify five groups of teams with similar GOU effects. However, only a few teams show GOU effects that resemble the typical hump shape that is postulated by the uncertainty of outcome hypothesis; the largest cluster is comprised of teams with fans whose attendance behaviour is relatively insensitive to differences in GOU.
Journal: Applied Economics
Pages: 3487-3497
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115451
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115451
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# input file: RAEC_A_2115452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gloria Claudio-Quiroga
Author-X-Name-First: Gloria
Author-X-Name-Last: Claudio-Quiroga
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Andoni Maiza-Larrarte
Author-X-Name-First: Andoni
Author-X-Name-Last: Maiza-Larrarte
Title: Persistence and trends in CO2 emissions in Africa: is Chinese FDI behind these features?
Abstract:
In this article, we investigate the statistical features of the CO2 emissions and CO2 emissions per capita in a group of 45 African countries by looking at their degree of persistence and also testing for the existence of trends in the data. In addition, we also investigate if this level of emissions is related to the Chinese FDI in Africa. The results are very heterogeneous across countries, observing orders of integration statistically below 1 in a group of countries; in others, the majority of them, the values are around 1, while for some others, the degree of integration is statistically significantly above 1. Linear time trends are observed in approximately half of the countries. These results imply that, in the long term, public measures to reduce CO2 emissions may be required in the majority of the countries since in the event of shocks the series will not return by themselves to their original levels. If we look at Chinese FDI in these countries, we observe that there seems to be no relationship between the Chinese investment in Africa and the CO2 emission persistence, though this result needs to be contrasted in future research.
Journal: Applied Economics
Pages: 3498-3513
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115452
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115452
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# input file: RAEC_A_2115454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tianyu Wang
Author-X-Name-First: Tianyu
Author-X-Name-Last: Wang
Author-Name: Chuanyong Zhang
Author-X-Name-First: Chuanyong
Author-X-Name-Last: Zhang
Author-Name: Zhejin Zhao
Author-X-Name-First: Zhejin
Author-X-Name-Last: Zhao
Title: Gender differences in the housing decisions of married-couple families: evidence from urban China
Abstract:
This paper investigates the role of gender of the household decision maker in the housing decisions of married-couple families. Using data across urban China from the China Labour-force Dynamic Survey during 2012–2016, the paper shows that married-couple families with female decision makers have higher rates of homeownership. We infer that housing provides more psychological and financial security for women than men. In addition, female decision makers tend to buy smaller houses and have higher returns on housing assets, which could be caused by the fact that female decision makers are more concerned about the members of their nuclear family, especially their kids. The main results are robust to control for the effects of the socioeconomic status of household members. These findings aid in understanding the role of gender in the housing market and offer guidance for better policies to boost a more efficient housing supply.
Journal: Applied Economics
Pages: 3527-3545
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115454
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115454
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# input file: RAEC_A_2115453_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zuhui Huang
Author-X-Name-First: Zuhui
Author-X-Name-Last: Huang
Author-Name: Yanzhou Liu
Author-X-Name-First: Yanzhou
Author-X-Name-Last: Liu
Author-Name: Yuxiang Wang
Author-X-Name-First: Yuxiang
Author-X-Name-Last: Wang
Author-Name: Songqing Jin
Author-X-Name-First: Songqing
Author-X-Name-Last: Jin
Title: Does migration experience reduce villagers’ social capital? Evidence from rural China
Abstract:
In this study, we examine the impact of migration experience on return migrant’s social capital using household survey data from rural China. We first develop a simple model to describe rural household’s decision to invest in social capital and then empirically examine how migration experience affects social capital using village-level natural disasters as instrumental variables for migration experience. Our results show that villagers’ migration experience reduces both structural social capital and cognitive social capital. Compared with those who never worked out of their native villages, return migrants would practice fewer social interactions, information communication, trust building and reciprocal behaviours with relatives. We provide suggestive evidence that the decline in social capital may be caused by the higher expected mobility of return migrants.
Journal: Applied Economics
Pages: 3514-3526
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115453
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115453
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# input file: RAEC_A_2115449_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shixuan Yu
Author-X-Name-First: Shixuan
Author-X-Name-Last: Yu
Author-Name: Lingang Zhang
Author-X-Name-First: Lingang
Author-X-Name-Last: Zhang
Title: The impact of patent information disclosure on the stock returns of high-tech corporates: an event study
Abstract:
For high-tech listed companies, the disclosure of patent information in financial statements influences firms’ value. Using the event study method, we examine the stock market’s reaction to patent information in financial statements. After measuring patent information on six items and dividing the level of patent information disclosure into the high group and low group, the results show that patent information disclosure is associated with changes in stock return. In addition, the impact of patent information disclosure on the stock return of a firm depends on the credibility of the voluntarily disclosed patent information or its quality. When the credibility is high, the degree of patent information disclosure has a positive impact on the stock return, while when the credibility is low, the degree of patent information disclosure has a negative impact on the stock return. The findings shed light on the selection of patent information disclosure strategies and provide a basis for future scholars to study improvements in stock market efficiency.
Journal: Applied Economics
Pages: 3458-3471
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115449
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115449
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Handle: RePEc:taf:applec:v:55:y:2023:i:30:p:3458-3471
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# input file: RAEC_A_2115001_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haoyu Hu
Author-X-Name-First: Haoyu
Author-X-Name-Last: Hu
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Author-Name: Ge Xin
Author-X-Name-First: Ge
Author-X-Name-Last: Xin
Title: Enrollment in public pension program and household land transfer behaviour: Evidence from rural China
Abstract:
Although farmland transfer is a radical solution to the problem of sustainable development of the land rental market in China, there is insufficient research that attempted to quantitatively explore the determinants of land transfer behaviour, particularly the effects of enrolment in public pension programs. In this paper, we examine how enrolment in the recently established and expanded New Rural Pension Scheme (NRPS) can affect land transfer decisions among the age-eligible and age-ineligible rural residents. Specifically, our study employs balanced panel data from the first two waves of the China Family Panel Studies (CFPS) in the year 2010 and 2012. It reveals that, although the enrolment in the public pension system increases the scale of farmland transfer among age-eligible people, this effect is not shown among age-ineligible members. Moreover, for households with members over the age of 60, the positive income effects are concentrated among farmers from low-income family; for other groups, the heterogeneous outcomes are insignificant. These estimates may offer insights for the dynamic adjustments of the public pensions for the elderly population and for enhancing the vitality of land transfer in rural China.
Journal: Applied Economics
Pages: 3443-3457
Issue: 30
Volume: 55
Year: 2023
Month: 06
X-DOI: 10.1080/00036846.2022.2115001
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115001
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# input file: RAEC_A_2117776_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thomas Patten Krumel
Author-X-Name-First: Thomas Patten
Author-X-Name-Last: Krumel
Author-Name: Corey Goodrich
Author-X-Name-First: Corey
Author-X-Name-Last: Goodrich
Title: Meatpacking working conditions and the spread of COVID-19
Abstract:
This paper explores how working conditions in meatpacking plants contributed to the spread of the COVID-19 virus. Data from the Occupational Information Network was used to construct a set of industry-level working condition variables and compare meatpacking to the sample of other manufacturing industries in our comparison group. This novel approach showed that proximity to others in the meatpacking industry is likely the main factor influencing the spread of COVID-19, more than three standard deviations higher in meatpacking than our comparison sample of other manufacturing industries. Subsequently, we performed a county-level analysis on COVID-19 spread, comparing rural counties with a large share of meatpacking workers to nonmetropolitan counties that were similarly dependent on other single manufacturing industries, using the time frame of mid-March to the end of 2020. In mid-April 2020, COVID-19 cases in meatpacking-dependent rural counties rose to more than 12 times compared to rural counties dependent on other single manufacturing industries. This difference disappeared completely by mid-July and held steady throughout the year. We demonstrate that our results are robust to a battery of robustness checks ruling out the set of plausible alternative hypotheses, including examining data on COVID-19 spread among meatpacking workers directly.
Journal: Applied Economics
Pages: 3637-3660
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117776
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117776
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# input file: RAEC_A_2117272_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tannista Banerjee
Author-X-Name-First: Tannista
Author-X-Name-Last: Banerjee
Author-Name: HaiYue Zhao
Author-X-Name-First: HaiYue
Author-X-Name-Last: Zhao
Title: Eating out and eating right: Understanding the relationship between food consumption decision and education using comprehensive consumer level data
Abstract:
The relation between education and health has been well established in the literature, especially as it pertains to chronic diseases like obesity. But, due to data limitations, most extant research lacks a direct explanation of unhealthy eating behaviour. The current study examines this relationship among a diverse set of compositional place indicators with direct measurement of healthy and unhealthy eating behaviour across census block groups in the United States. We empirically examine the relationships between education, obesity, and the number of patrons at healthy and unhealthy eating establishments in the United States. Results obtained through various alternative empirical models show the effect of education on unhealthy eating habits. People who reside in areas with low education show higher frequencies of unhealthy eating behaviours. We also found that the number of reviews is essential to both healthy and unhealthy restaurants. Furthermore, we observed a significant change in food choices on weekdays vs. weekends. On weekends, consumers are less sensitive about the price for both healthy and unhealthy restaurants. These results contribute to previous studies on the reduced health status in low-educated geographical locations. The results point to important policy implications for mitigating obesity and improving healthy eating by geographical variation
Journal: Applied Economics
Pages: 3609-3622
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117272
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117272
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# input file: RAEC_A_2115455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: José Alves
Author-X-Name-First: José
Author-X-Name-Last: Alves
Title: Are fiscal consolidation episodes helpful for public sector efficiency?
Abstract:
We assess the consequences of fiscal consolidation episodes on public sector efficiency (scores) for 35 OECD countries for the 2007–2020 period. We find that fiscal consolidations improve public sector efficiency and results are robust across efficiency models. Moreover, peripheral euro-area economies and economies with debt-to-GDP ratios between 60% and 90% are those whose public sector efficiency scores improve more when fiscal consolidation episodes occur. The evidence that fiscal consolidations enhance spending efficiency is an additional argument for fiscal consolidations, from a policy perspective.
Journal: Applied Economics
Pages: 3547-3560
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2115455
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115455
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# input file: RAEC_A_2115973_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhiyang Hui
Author-X-Name-First: Zhiyang
Author-X-Name-Last: Hui
Author-Name: Hongyan Fang
Author-X-Name-First: Hongyan
Author-X-Name-Last: Fang
Title: Government controlling ownership and CEO compensation incentives: evidence from China
Abstract:
This paper investigates the relationship between government-controlling ownership and CEO compensation incentives in China, using a comprehensive evaluation of CEO pay-performance sensitivity (PPS). We find that government-controlling ownership weakens CEO PPS, with PPS being around 6 lower for CEOs in state-owned enterprises (SOEs) than CEOs in non-state-owned enterprises (non-SOEs), representing a reduction of around 14% for a CEO with the average level of PPS. The results sustain after using privatization as the experiment setting wherein firms’ ultimate controllers changed from government owners to private owners. Moreover, the negative influence of government controlling ownership on CEO compensation incentives is more prominent in SOEs with a higher level of government ownership or a lower hierarchy government as the controller. We also explore the association between CEO incentives and firm performance and find that PPS in SOEs is more important in association with firms’ stock performance than non-SOEs. Results in this paper extend studies on the influence of government controlling ownership on CEO compensation incentives, an issue that is caught much attention in the ongoing reform of China’s SOEs.
Journal: Applied Economics
Pages: 3561-3579
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2115973
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2115973
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# input file: RAEC_A_2174933_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ilhang Shin
Author-X-Name-First: Ilhang
Author-X-Name-Last: Shin
Author-Name: Hansol Lee
Author-X-Name-First: Hansol
Author-X-Name-Last: Lee
Title: Do related party transactions promote or depress a firm’s investment in organization capital?
Abstract:
We examine whether related party transactions influence a firm’s investment in organization capital, using a sample of Korean firms from 2001 to 2020. Given that the high magnitude of related party transactions increases a firm’s dependence on the captive market within related parties, we hypothesize that a firm’s incentives to invest in intangible capital are low when there are heavy related party transactions. We find the negative relationship between related party transactions and a firm’s investment in organization capital, consistent with the notion that related party transactions significantly impact the firm’s operations. We also find that such a relationship is more pronounced for firms in the high-tech industry and those that are financially weak.
Journal: Applied Economics
Pages: 3661-3674
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2023.2174933
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174933
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# input file: RAEC_A_2116390_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Hesam Ghodsi
Author-X-Name-First: Hesam
Author-X-Name-Last: Ghodsi
Author-Name: Muris Hadzic
Author-X-Name-First: Muris
Author-X-Name-Last: Hadzic
Author-Name: Hardik Marfatia
Author-X-Name-First: Hardik
Author-X-Name-Last: Marfatia
Title: Asymmetric relationship between money supply and house prices in states across the U.S
Abstract:
There is an intricate link between money supply and house prices. However, housing markets have downward price rigidity, different supply elasticities, and changing market sentiments. Thus, the response of house prices to expansionary monetary policy shocks differs from contractionary shocks. We use an asymmetric/nonlinear autoregressive distributive lag (NARDL) approach to estimate the asymmetric effects of money supply on house prices in each state in the U.S. a practice that makes our study differ from previous research. The house price growth in 38 states responds symmetrically to money supply changes in the short run. However, in 48 states, positive changes in money supply impact house prices differently from negative changes in the short run. In addition, there is a long-run relationship between money supply and house prices, but only when we account for asymmetries.
Journal: Applied Economics
Pages: 3580-3608
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2116390
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2116390
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# input file: RAEC_A_2117775_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tian Wang
Author-X-Name-First: Tian
Author-X-Name-Last: Wang
Author-Name: Cangfeng Wang
Author-X-Name-First: Cangfeng
Author-X-Name-Last: Wang
Title: Innovation activity and exports by destination
Abstract:
This article examines the effect of innovation activity on exports by destination using firm-level data from two India surveys collected by the World Bank. Both OLS regressions and IV estimations using innovation-reason indicators as the exogenous variation in innovation activity show the following findings. Firms with spending on R&D activity increase exports to richer destinations and consequently increase total exports than those without. This suggests that firms in lower-middle-income countries like India need to engage in R&D activity to satisfy the quality requirement in richer countries and increase exports. However, there is no consistent evidence that firms with a new process/product have such a causal effect. The contrast may reflect that, in poorer countries like India, instead of introducing new processes/products, spending on formal R&D activity is one more appropriate measure of innovation activity for the international market.https://datahelpdesk.worldbank.org/knowledgebase/articles/906519
Journal: Applied Economics
Pages: 3623-3636
Issue: 31
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117775
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117775
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# input file: RAEC_A_2118221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Yutong Yao
Author-X-Name-First: Yutong
Author-X-Name-Last: Yao
Title: Does anti-corruption contribute to improving environmental pollution in China?
Abstract:
We examine the effects of anti-corruption efforts on local environmental pollution in China. Using data for China from 2003 to 2017, we find that anti-corruption efforts contribute to reduce local environmental pollution. Second, we show the two possible channels through which the anti-corruption efforts reduce local environmental pollution: political connection effects and deterrent effects. Finally, our results show that the effects of anti-corruption efforts on local environmental pollution are stronger in cities located south of the ‘Qin ling Mountains-Huai he River’, in cities with stronger government and public concern for the environment. Our main results pass a series of robustness tests. Overall, we offer novel evidence that anti-corruption efforts contribute to improving environmental quality.
Journal: Applied Economics
Pages: 3766-3787
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118221
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118221
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# input file: RAEC_A_2118222_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Adrian Zoicas-Ienciu
Author-X-Name-First: Adrian
Author-X-Name-Last: Zoicas-Ienciu
Author-Name: Maria Miruna Pochea
Author-X-Name-First: Maria Miruna
Author-X-Name-Last: Pochea
Title: What drives trend-following profits in stocks? The role of the trading signals’ volatility
Abstract:
We document the influence of stock volatility on trend-following profits for a global sample of 1618 blue-chip stocks, across 43911 evaluation subperiods (2004–2018). We use the price sensitivity of trend signals (i.e. signal volatility) to isolate the detrimental impact of high stock volatility manifested through excessive/inefficient trading. Despite its almost null correlation with the stocks’ mean-variance characteristics, the signal volatility greatly complements them in explaining the time series variation in trend-following excess returns. The results hold for both the buy and sell excess returns, are robust across stock markets, and conserve after considering explicit and implicit trading costs. Investors can use ex postsignal volatility estimates as a valid criterion to choose across potential trading rules, according to their specific levels of risk aversion and transaction costs.
Journal: Applied Economics
Pages: 3788-3805
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118222
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118222
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# input file: RAEC_A_2117781_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tenkir Seifu Legesse
Author-X-Name-First: Tenkir Seifu
Author-X-Name-Last: Legesse
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Ying Wang
Author-X-Name-First: Ying
Author-X-Name-Last: Wang
Author-Name: Jiqiang Tang
Author-X-Name-First: Jiqiang
Author-X-Name-Last: Tang
Author-Name: Zhen Wu
Author-X-Name-First: Zhen
Author-X-Name-Last: Wu
Title: The impact of economic policy uncertainty and financial development on the sensitivity of corporate cash holding to cash flows
Abstract:
The paper examines how economic policy uncertainty and financial development affect a firm’s cash-holding policy before and after the global financial crisis. Using Chinese nonfinancial firm data from 1997 to 2018, we obtain three main findings. First, economic policy uncertainty increases corporate cash holdings and its sensitivity to operating cash flows. Second, financial institution and market developments reduce corporate cash-holdings’ cash flow sensitivity. Third, the impact of economic policy uncertainty on corporate cash-holdings’ sensitivity to operating cash flows decreases with financial development. Firms adjust their cash-holding policy in response to changes in economic policy uncertainty and financial development, indicating that macroeconomic factors determine the precautionary motive for holding cash.
Journal: Applied Economics
Pages: 3728-3746
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117781
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117781
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# input file: RAEC_A_2117782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yunxi Tang
Author-X-Name-First: Yunxi
Author-X-Name-Last: Tang
Author-Name: Kung-Cheng Ho
Author-X-Name-First: Kung-Cheng
Author-X-Name-Last: Ho
Author-Name: Ji (George) Wu
Author-X-Name-First: Ji (George)
Author-X-Name-Last: Wu
Author-Name: Liping Zou
Author-X-Name-First: Liping
Author-X-Name-Last: Zou
Author-Name: Shouyu Yao
Author-X-Name-First: Shouyu
Author-X-Name-Last: Yao
Title: Directors and officers liability insurance and maturity mismatch: evidence from China
Abstract:
We investigate the impact of the purchase of Directors’ and Officers’ liability insurance (D&O insurance) on a firm’s risk-taking behaviour in China, measured by the firm’s maturity mismatch ratio. Using a unique manually collected dataset, we find a significant positive relationship between a firm’s purchase of D&O insurance and the firm’s maturity mismatch ratio, which supports the moral hazard theory. The mechanisms of our main finding are corresponding internal and external monitoring, in which the main finding is only significant for firms under weak monitoring. Our result remains significant after employing several approaches to alleviate potential endogeneity concerns, including an alternative sample and the sensitivity test model. Our paper sheds some extra light on the issue related to D&O insurance in a country with inadequate internal supervision and weak investor protection and the determinant of a firm’s maturity mismatch ratio.
Journal: Applied Economics
Pages: 3747-3765
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117782
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117782
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# input file: RAEC_A_2117779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hanan Amin Mohamed
Author-X-Name-First: Hanan Amin
Author-X-Name-Last: Mohamed
Title: The role of digital transformation in the socio-economic recovery post COVID-19
Abstract:
Several measures have been taken to reduce the impact of COVID-19 pandemic. One of these measures is the broad digital transformation that has rapidly and unexpectedly forced the deployment of digital technologies into corporations’ business models and organizational structures. This digital transformation has affected all the socio-economic aspects. In response to the COVID-19 global pandemic, this paper explores the impact of the implementation of digital transformation on the socio-economic recovery by employing cross-sectional regression analysis on 99 countries in year 2020. The paper analyzes the impact of digital transformation on each of economic growth, health care, and income inequality. The results reveal that the digital transformation has a positive and significant impact on the GDP per capita in which a 1% increase in digital transformation results in 1.52% increase in GDP per capita, a positive and significant impact on income equality in which a 1% increase in digital transformation leads to 0.05% increase in income equality, and a negative and significant impact on infant mortality rate, in which a 1% increase in digital transformation results in 0.85% decrease in infant mortality rate which reflects its positive impact on the health care. Hence, the digital transformation has a positive and significant effects on different socio-economic aspects.
Journal: Applied Economics
Pages: 3716-3727
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117779
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117779
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# input file: RAEC_A_2117778_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Junlin Mu
Author-X-Name-First: Junlin
Author-X-Name-Last: Mu
Author-Name: Lipeng Yan
Author-X-Name-First: Lipeng
Author-X-Name-Last: Yan
Author-Name: Shanshan Wu
Author-X-Name-First: Shanshan
Author-X-Name-Last: Wu
Title: Growing with inequality: a DSGE model with heterogeneous human capital and endogenous economic growth
Abstract:
We try to explain the simultaneous increases in economic growth and income inequality in China with a heterogeneous endogenous growth-based DSGE model. It is found that: First, our model can simulate the positive correlation between economic growth and income inequality in China. China’s economic development has created better conditions and incentives for the accumulation of human capital of workers with high initial human capital, thus stimulating them to contribute more to economic growth, but this widens the income inequality simultaneously. Second, the change in economic growth and the change in income inequality also exhibit a positive correlation under the influence of various policy shock. Any shock that raises economic growth, such as different types of technology shock and investment shock (after 8 quarters), will correspondingly widen income inequality. Conversely, any shock that reduces economic growth, such as fiscal spending shock, interest rate shock and investment shock (before 8 quarters) will correspondingly reduce income inequality. Third, the government’s preference for workers with high initial human capital in the implementation of macroeconomic policies determines the positive correlation between the change in economic growth and in income inequality. Workers with high initial human capital are central to the effectiveness of macroeconomic policies.
Journal: Applied Economics
Pages: 3689-3715
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117778
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117778
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# input file: RAEC_A_2117777_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alessandro Cremaschini
Author-X-Name-First: Alessandro
Author-X-Name-Last: Cremaschini
Author-Name: Antonio Punzo
Author-X-Name-First: Antonio
Author-X-Name-Last: Punzo
Author-Name: Eliano Martellucci
Author-X-Name-First: Eliano
Author-X-Name-Last: Martellucci
Author-Name: Antonello Maruotti
Author-X-Name-First: Antonello
Author-X-Name-Last: Maruotti
Title: On stylized facts of cryptocurrencies returns and their relationship with other assets, with a focus on the impact of COVID-19
Abstract:
This study provides an empirical analysis on the main univariate and multivariate stylized facts iin return series of the two of the largest cryptocurrencies, namely Ethereum and Bitcoin. A Markov-Switching Vector AutoRegression model is considered to further explore the dynamic relationships between cryptocurrencies and other financial assets. We estimate the presence of volatility clustering, a rapid decay of the autocorrelation function, an excess of kurtosis and multivariate little cross-correlation across the series, except for contemporaneous returns. The analysis covers the pandemic period and sheds lights on the behaviour of cryptocurrencies under unexpected extreme events.
Journal: Applied Economics
Pages: 3675-3688
Issue: 32
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2117777
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2117777
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# input file: RAEC_A_2120179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Humberto Brea-Solís
Author-X-Name-First: Humberto
Author-X-Name-Last: Brea-Solís
Author-Name: Emili Grifell-Tatjé
Author-X-Name-First: Emili
Author-X-Name-Last: Grifell-Tatjé
Title: Winners and losers of the productivity gains of the American agricultural sector
Abstract:
The aim of this study is twofold. First, to identify who benefited from the productivity growth of the American agricultural sector from 1960 to 2004. Second, to measure the relationship between changes in productivity, its distribution, and the evolution of variables linked with climate change. This study shifts the attention from the drivers of productivity change to how it is distributed. Our results show that the stakeholders of the US agricultural sector do not benefit equally from productivity growth. Moreover, it provides empirical evidence that supports the treadmill theory about how technological innovation pushes some farmers out of the market. Concerning the relationship between extreme weather variables (precipitation, temperature, and droughts) and the distribution of productivity change, this depends on the geographical situation of the state. Some stakeholders might be the winners of anomalous climate events in some regions of the US. These findings suggest that reaching a consensus on initiatives to stop climate change will be extremely difficult.
Journal: Applied Economics
Pages: 3915-3930
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120179
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120179
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# input file: RAEC_A_2118962_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vaseem Akram
Author-X-Name-First: Vaseem
Author-X-Name-Last: Akram
Author-Name: Badri Narayan Rath
Author-X-Name-First: Badri Narayan
Author-X-Name-Last: Rath
Author-Name: Bibhudutta Panda
Author-X-Name-First: Bibhudutta
Author-X-Name-Last: Panda
Title: Convergence Analysis of Social Sector Expenditure and its Components: Evidence from the Indian States
Abstract:
This paper examines the convergence of public expenditure and its major components using sub-national data from India. By employing the panel club convergence test, the paper finds convergence in per capita public expenditure across Indian states implying that distribution policies of public expenditure are effective and fair across the states. Subsequently, the convergence of per capita total social sector expenditure and its major components are studied. The results support the evidence of convergence for total social sector expenditures and in the case of its components, we find that six of the nine components display regional convergence. Three components, namely, per capita education, sports, art and culture expenditure; per capita social security and welfare expenditure; and per capita rural development expenditure display the evidence of divergence and the presence of multiple transition paths. From the policy perspective, these three components of social expenditures need greater attention by the state governments as these expenditures are important for social cohesion, sustainable development, and achieving millennium development goals.
Journal: Applied Economics
Pages: 3850-3862
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118962
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118962
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# input file: RAEC_A_2118225_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhen Wang
Author-X-Name-First: Zhen
Author-X-Name-Last: Wang
Author-Name: Mingzhi Hu
Author-X-Name-First: Mingzhi
Author-X-Name-Last: Hu
Author-Name: Jie Chen
Author-X-Name-First: Jie
Author-X-Name-Last: Chen
Title: Land redevelopment and migrant inflows in Chinese cities
Abstract:
This paper investigates how land redevelopment is associated with a city’s potential to attract migrants. Based on empirical analysis conducted by using over one million records of land transaction data between 2008 and 2018 in Chinese cities, we observe that cities with a larger ratio of redevelopment land in the total area of land supply on average have attracted more of the migrant population. Moreover, a high proportion of redevelopment area for public services and infrastructure in the total land redevelopment area can further attract migrants. We also find a larger effect of land redevelopment in attracting migrant inflows in less developed regions than developed regions. These findings suggest the advantages of intensive urban strategy (‘compact urban’) compared with extensive urban strategy (‘urban sprawl’) in attracting migrant population. Implications of these findings for urban governancear are discussed.
Journal: Applied Economics
Pages: 3833-3849
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118225
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118225
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# input file: RAEC_A_2118224_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ali Saeedi
Author-X-Name-First: Ali
Author-X-Name-Last: Saeedi
Title: A High-Dimensional Approach to Predicting Audit Opinions
Abstract:
This study develops a model for the prediction of audit reports. The research data comprises 57881 firm-year observations for public companies listed on the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and the NASDAQ from 2000 to 2019. The dataset consists of a high dimension of predictor variables (105 variables), including accounting-based, ownership concentration, executive compensation, market price, analysts rating, macroeconomic, and audit-related variables. A commercial version of Gradient Boosting, called TreeNet®, is used to build the prediction model. The results indicate that the developed model demonstrates high performance in predicting going-concern reports with an accuracy rate of 97.5%.
Journal: Applied Economics
Pages: 3807-3832
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118224
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118224
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# input file: RAEC_A_2119200_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abigail Cormier
Author-X-Name-First: Abigail
Author-X-Name-Last: Cormier
Author-Name: Austin F. Eggers
Author-X-Name-First: Austin F.
Author-X-Name-Last: Eggers
Author-Name: Peter a Groothuis
Author-X-Name-First: Peter a
Author-X-Name-Last: Groothuis
Author-Name: Kurt W. Rotthoff
Author-X-Name-First: Kurt W.
Author-X-Name-Last: Rotthoff
Title: The impact of basketball malfeasance on the university and its rankings
Abstract:
Collegiate sports have a profound impact on a university beyond athletics. Successful athletics have been shown to have a positive impact on the institution. Likewise, athletic malfeasance has been shown to negatively impact the university. We analyse tournament bans in Division I college basketball as a signal for university quality in rankings (U.S. News and World Report’s peer rankings), student quality, and other university measures. We find evidence that following a postseason tournament ban, applications from students in the top ten percent of their high school class decrease, some evidence that academic test scores decrease, and some evidence that the amount of alumni donations decrease. These results suggest that an athletic department’s malfeasance leads to a decline in university quality. We do, however, find that peer rankings from faculty administrators fall the year of the ban, only to increase slightly two years after sanctions for athletic malfeasance.
Journal: Applied Economics
Pages: 3902-3914
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2119200
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2119200
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# input file: RAEC_A_2118963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Annalisa Cristini
Author-X-Name-First: Annalisa
Author-X-Name-Last: Cristini
Author-Name: Mara Grasseni
Author-X-Name-First: Mara
Author-X-Name-Last: Grasseni
Author-Name: Silvana Signori
Author-X-Name-First: Silvana
Author-X-Name-Last: Signori
Title: Can worker cooperatives stabilize employment and remain financially sound during a prolonged recession?
Abstract:
This paper uses financial accounting data of the universe of Italian worker cooperatives, from 2011 to 2018, to examine whether cooperatives were able to achieve employment stabilization in a period of prolonged recession. Since wages have experienced, in most of the period, a negative growth, we further consider whether wages’ downward flexibility had been sufficient to sustain employment stabilization and whether, under these circumstances, cooperatives’ financial solidity had weakened. Given the non-experimental setting, we proceed by defining a control group of conventional firms to which we compare the group of worker cooperatives. We find evidence that, relative to the control group, during negative demand shocks, worker cooperative contained employment drop and allowed a greater downward wage adjustment. Their profitability and equity ratio also fell by more than in the control group. We find significant-sector heterogeneity, especially in response to positive demand shocks; in Less Knowledge Intensive Services and in Constructions, which together comprise more than 70% of worker cooperatives, it is employment, rather than wages, that rises by more than in conventional firms. This suggests that in the aftermath of a prolonged recession most worker cooperatives chose to favour growth at the expense of members’ wage.
Journal: Applied Economics
Pages: 3863-3883
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2118963
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2118963
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# input file: RAEC_A_2119199_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ripon Kumar Mondal
Author-X-Name-First: Ripon Kumar
Author-X-Name-Last: Mondal
Author-Name: Eliyathamby a Selvanathan
Author-X-Name-First: Eliyathamby a
Author-X-Name-Last: Selvanathan
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: Moazzem Hossain
Author-X-Name-First: Moazzem
Author-X-Name-Last: Hossain
Title: Rural versus urban food security in Bangladesh
Abstract:
Within contemporary global food security discourse, the difference in food security issues between rural and urban households has received scant attention. Since urban and rural livelihoods and lifestyles are different, we hypothesized that the determinants of food security between rural and urban households could also be different. This study is one of the first attempts to thoroughly examine the difference in food security between rural and urban households in Bangladesh. Using recent field survey data from Bangladesh, and applying the binary logistic model, firstly, we find that rural households are likely to be more food secure than urban households. Secondly, this study finds that the determinants of food security vary between rural and urban households. Hence, policymakers and administrators must understand the specific community-level conditions so that they can identify which of the key variables must be addressed in the development of programmes to improve food security both in rural and urban areas.
Journal: Applied Economics
Pages: 3884-3901
Issue: 33
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2119199
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2119199
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# input file: RAEC_A_2123103_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nermeen Shehata
Author-X-Name-First: Nermeen
Author-X-Name-Last: Shehata
Author-Name: Siva Nathan
Author-X-Name-First: Siva
Author-X-Name-Last: Nathan
Author-Name: Omar Farooq
Author-X-Name-First: Omar
Author-X-Name-Last: Farooq
Author-Name: Khaled Dahawy
Author-X-Name-First: Khaled
Author-X-Name-Last: Dahawy
Title: External audit and tax evasion: evidence from India
Abstract:
This paper aims to examine the relationship between voluntary external audit by privately held firms and tax evasion in India. We use data generated by the World Bank Enterprise Survey which is based on interviews conducted over 2013 and 2014 only. Our final sample includes 7,262 privately held Indian firms. Our research reports the following results for privately held companies in India: (1) Firms with voluntarily audited financial statements are more likely to evade taxes; (2) Firms that face financing constraints are more likely to have stronger relationship between voluntary external audit and tax evasion; (3) Firms operating in Indian states with better business environment (as measured by ease of doing business) are more likely to have weaker relationship between voluntary external audit and tax evasion.
Journal: Applied Economics
Pages: 4023-4036
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123103
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123103
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# input file: RAEC_A_2120959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luis Guirola
Author-X-Name-First: Luis
Author-X-Name-Last: Guirola
Author-Name: Javier J. Pérez
Author-X-Name-First: Javier J.
Author-X-Name-Last: Pérez
Title: The decoupling between public debt fundamentals and bond spreads after the European sovereign debt crisis
Abstract:
We contribute to the literature that documents empirically that the relationship between public debt fundamentals and sovereign bond spreads in Spain, France, and Italy (versus Germany) weakened after the 2010–2012 episode of sovereign debt markets’ significant distress. To construct our measure of public debt fundamentals, we build on the literature that combines the Value at Risk approach with the estimation of the correlation pattern of public debt dynamics’ macroeconomic determinants via Vector Auto Regressions (VARs) to estimate the probability distribution of alternative debt trajectories. Since we incorporate in the VAR new information in a sequential manner, we are able to retrieve time-varying probabilities that characterize the expected behaviour of debt at a given point in time in the future. We then empirically confront such probabilistic indicators with market-derived sovereign bond spreads.
Journal: Applied Economics
Pages: 3971-3979
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120959
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120959
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# input file: RAEC_A_2121379_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jayadevan Cm
Author-X-Name-First: Jayadevan
Author-X-Name-Last: Cm
Author-Name: Nam Trung Hoang
Author-X-Name-First: Nam Trung
Author-X-Name-Last: Hoang
Author-Name: Subba Reddy Yarram
Author-X-Name-First: Subba Reddy
Author-X-Name-Last: Yarram
Title: Human capital and the middle-income trap revisited
Abstract:
Middle-income trap refers to the economic growth strategies that transition low-income countries into middle-income ones but fail to transition the middle-income countries into high-income countries. We observe the existence of a middle-income trap for upper-middle- and lower-middle-income countries. We examine the reasons for the middle-income trap using the Bayesian model averaging (BMA) and generalized method of moments (GMM). We also explore the transformation of middle-income economies into high-income economies using logistic, probit and Limited Information Maximum Likelihood (LIML) regression analyses. Random forest analysis is also used to check the robustness of the findings. BMA analysis shows that education plays an enabling role in high-income countries in determining economic growth, whereas the full potential of education is not fully utilized in middle-income countries. GMM estimations show that the education coefficient is positive and significant for high-income and middle-income countries. This implies that education plays a decisive positive role in achieving economic growth and gives a path to escape from the middle-income trap. However, the education coefficient for middle-income countries is approximately half that of high-income countries. Therefore, the findings of this study call for additional investment and focused strategies relating to human capital endowments.
Journal: Applied Economics
Pages: 4003-4022
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2121379
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2121379
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# input file: RAEC_A_2120960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lihong Yu
Author-X-Name-First: Lihong
Author-X-Name-Last: Yu
Author-Name: Wenxiong Wang
Author-X-Name-First: Wenxiong
Author-X-Name-Last: Wang
Author-Name: Yongzheng Cui
Author-X-Name-First: Yongzheng
Author-X-Name-Last: Cui
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Author-Name: Zitong Fu
Author-X-Name-First: Zitong
Author-X-Name-Last: Fu
Author-Name: Letian He
Author-X-Name-First: Letian
Author-X-Name-Last: He
Title: Influence of capital endowment on rural households’ willingness to pay for rural human settlement improvement: evidence from rural China
Abstract:
Studying the influence of capital endowment on rural households’ willingness to pay (WTP) for rural human settlement improvement (RHSI) will help to seek a breakthrough for implementing a rural environmental management payment system. According to Bourdieu’s practical theory, this study establishes a theoretical analysis model and research hypothesis of capital endowment (economic capital, cultural capital, and social capital) and rural households’ WTP for RHSI. This study uses the Double-Hurdle Model to empirically analyse the effect of capital endowment on rural households’ two-stage WTP for RHSI (the payment inclination and the willingness payment amount). This study found that capital endowment has a significant positive impact on rural households’ WTP for RHSI. Economic capital (annual household income, number of agricultural machinery), cultural capital (head of household’s education level, migrant work experience, and the degree of current affairs awareness), and social capital (moral restraint, interpersonal trust, and institutional trust) can significantly increase a rural household’s payment inclination and willingness payment amount. Accordingly, this study proposes policy recommendations to incorporate rural households’ interest demands into the development and implementation process of RHSI projects, and to strengthen the accumulation of the three types of capital endowments of rural households.
Journal: Applied Economics
Pages: 3980-3995
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120960
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120960
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# input file: RAEC_A_2120958_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rongbing Huang
Author-X-Name-First: Rongbing
Author-X-Name-Last: Huang
Title: Auditing the environmental accountability of local officials and the corporate green response: evidence from China
Abstract:
Auditing the natural-resource asset accountability of local officials is an institutional innovation that China used to transform its mode of economic development from that of an ‘industrial civilization’ to an ‘ecological civilization’. This study investigated the effect of changes in the assessment of local officials for promotion (i.e. including environmental protection in the assessment, along with economic performance) on the green response of enterprises. To this end, a nationwide pilot project (2015–2017) involving the auditing of natural-resource assets for local officials was used as a quasi-experiment. The results indicated that the green response level of the treatment (audit pilot) group was significantly higher than that of the control group. This indicated that the system for auditing the natural-resource assets for local officials had environmental governance effects. According to a mediation analysis, both governmental subsidies and bank credit mediated the effect of auditing on green response of enterprises. This indicates that during the pilot audits of natural-resource assets, high-polluting enterprises mainly met the requirements of the government and banks for a green response to obtain economic support. This study provides empirical evidence for evaluating policy effects and strengthening the audits of local officials’ environmental accountability.
Journal: Applied Economics
Pages: 3950-3970
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120958
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120958
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# input file: RAEC_A_2120180_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ekta Sikarwar
Author-X-Name-First: Ekta
Author-X-Name-Last: Sikarwar
Title: Determinants of Foreign exchange exposure during the COVID-19 crisis: A Multi-country evidence
Abstract:
The research question of which firm-level factors make firms more vulnerable to exchange rate fluctuations during periods of crisis has rarely been explored by prior literature. Using a large sample of 1577 firms from 9 developed and 11 emerging countries, this study presents a comprehensive analysis of how firm-level factors affect firms’ foreign exchange exposure before and during the COVID-19 crisis. The results provide evidence of a substantial increase in firms’ linear exposure during the COVID-19 period. The cross-sectional analysis reveals that the effects of firm-level variables on exposure are more pronounced during crisis periods and are different from non-crisis periods. Firms that have effective asset utilization or large operating profit margins remain less exposed during times of stress. Contrary to hedging theory, firms that have high incentives to hedge such as firms with high financial leverage become highly exposed to currency fluctuations during crisis periods. The interaction analysis provides further evidence that firms with high leverage can limit their foreign exchange exposure during periods of crisis if they have high asset turnover or high operating profits. The results offer important practical implications to firms for risk management during periods of crisis.
Journal: Applied Economics
Pages: 3931-3949
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2120180
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2120180
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# input file: RAEC_A_2121378_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Christopher M. Duquette
Author-X-Name-First: Christopher M.
Author-X-Name-Last: Duquette
Title: An exploratory study on the migration-pattern impact of coal dust in the US
Abstract:
In this exploratory study, it is observed that there is a potentially important dimension of the quality of life that has been effectively ignored in prior migration studies in the U.S.: air quality as reflected by the presence of coal dust per se. Accordingly, it is hypothesized in this study that an elevated presence of coal dust in close proximity to a prospective residence will act to discourage in-migration (both net in-migration and gross in-migration) because of the greater threat of adverse health impacts and because of elevated expected and/or actual pure economic costs per se, for example, deterioration of one’s physical assets, including automobile(s) and housing, that accompany close proximity to elevated airborne coal dust. There is strong empirical support for this ‘coal dust/in-migration hypothesis’.
Journal: Applied Economics
Pages: 3996-4002
Issue: 34
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2121378
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2121378
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# input file: RAEC_A_2123105_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mengfan Zhang
Author-X-Name-First: Mengfan
Author-X-Name-Last: Zhang
Author-Name: Yuxiang Hong
Author-X-Name-First: Yuxiang
Author-X-Name-Last: Hong
Title: Effects of civilized cities commendation on urban green innovation: evidence from a quasi-natural experiment in China
Abstract:
Based on non-economic field promotion tournament theory, this study examines the linkage between civilized cities commendation policy (CCCP) and urban green innovation (UGI). Using the panel data of 279 cities in China from 2003 to 2018, the difference-in-differences, propensity score matching difference-in-differences, and difference-in-differences spatial dobbin models are established to verify the hypotheses. The empirical results show that CCCP has a positive effect on UGI; innovation investments and innovation talents significantly mediate the relationship between CCCP and UGI; environmental governance intensity positively moderates the relationships between CCCP and UGI, innovation investments and UGI, as well as innovation talent agglomeration and UGI; and the influence of CCCP on UGI has a spatial spillover effect and a spatial attenuation boundary. These findings provide practical insights towards the improvement of urban evaluation and commendation systems, as well as green innovation.
Journal: Applied Economics
Pages: 4060-4077
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123105
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123105
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# input file: RAEC_A_2123107_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Miao Yu
Author-X-Name-First: Miao
Author-X-Name-Last: Yu
Author-Name: Xiaolu Hu
Author-X-Name-First: Xiaolu
Author-X-Name-Last: Hu
Author-Name: Angel Zhong
Author-X-Name-First: Angel
Author-X-Name-Last: Zhong
Title: The spread of COVID-19 in stock returns along global value chains
Abstract:
This paper examines the performance of industries in the trade network in international stock markets during the onset of COVID-19. In general, the value of all industries in G20 countries declines significantly in the pandemic. Stock returns of industries in the central positions of global value chains exhibit remarkable resilience despite the economic hardship caused by COVID-19. This pattern is more pronounced when the disruptions caused by social distancing requirements are considered. We postulate that this is related to the essential services provided by the central industries.
Journal: Applied Economics
Pages: 4091-4107
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123107
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123107
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# input file: RAEC_A_2125494_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhen Li
Author-X-Name-First: Zhen
Author-X-Name-Last: Li
Author-Name: Yanyan Shen
Author-X-Name-First: Yanyan
Author-X-Name-Last: Shen
Author-Name: Maogang Tang
Author-X-Name-First: Maogang
Author-X-Name-Last: Tang
Title: Government subsidies and the development of PPP projects: evidence from China
Abstract:
Based on micro data on public-private partnership (PPP) projects in China, this study adopts the survival analysis model and the difference-in-difference-in-differences (DDD) method to explore the effects of government subsidies on PPP project development. We investigate PPP project development from the perspective of contract signing and construction commencement, making an original contribution to the existing literature. We find that government subsidies can promote the faster signing of PPP contracts but cannot promote on-time construction commencement of PPP projects. This is because government subsidies do not solve the financing constraints that restrict the commencement of PPP project construction. Additionally, government subsidies can promote the faster signing of PPP contracts and on-time construction commencement of PPP projects in areas with high PPP market transparency.
Journal: Applied Economics
Pages: 4130-4145
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2125494
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2125494
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# input file: RAEC_A_2123104_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vivek Bhargava
Author-X-Name-First: Vivek
Author-X-Name-Last: Bhargava
Author-Name: Mukesh K. Chaudhry
Author-X-Name-First: Mukesh K.
Author-X-Name-Last: Chaudhry
Title: Trend reversal and alpha generation by hedge funds
Abstract:
Hedge funds use different strategies to outperform benchmark indices by undertaking complex, versatile and dynamic techniques. These strategies may however create alpha generating opportunities in the time series that may be contrary to the existence of random walk behaviour. Tests using unit-root structural break analysis led to rejection of random walk hypothesis favouring trend stationarity or mean reversion. Additional tests including structural breaks are conducted to establish persistence of alpha generating opportunities for twelve different hedge fund indices. For some strategies, profitable prospects occur only before the break date, as evidence suggests a paradigm shift between the two periods.
Journal: Applied Economics
Pages: 4037-4059
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123104
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123104
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# input file: RAEC_A_2123106_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maria Alessandra Antonelli
Author-X-Name-First: Maria Alessandra
Author-X-Name-Last: Antonelli
Author-Name: Angelo Castaldo
Author-X-Name-First: Angelo
Author-X-Name-Last: Castaldo
Author-Name: Valeria De Bonis
Author-X-Name-First: Valeria
Author-X-Name-Last: De Bonis
Title: Assessing the interdependence of social policy outcomes: evidence from European countries
Abstract:
This paper investigates the existence of social policy interdependence in 22 European countries. We find that the outcomes of social policies achieved in a country are influenced by the social outcomes obtained in other countries; more precisely, there is a positive correlation between the level of welfare services in a country and a weighted average of the welfare services level in other countries, with the weights capturing the different degrees of proximity between them. The other determinants of social outcomes include the efficiency of the expenditure process, the GDP level, and the redistributive preferences of the median voter.
Journal: Applied Economics
Pages: 4078-4090
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2123106
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2123106
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# input file: RAEC_A_2125495_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohammad Bitar
Author-X-Name-First: Mohammad
Author-X-Name-Last: Bitar
Author-Name: Imane El Ouadghiri
Author-X-Name-First: Imane
Author-X-Name-Last: El Ouadghiri
Author-Name: Jonathan Peillex
Author-X-Name-First: Jonathan
Author-X-Name-Last: Peillex
Title: A cross-institutional exploratory investigation of COVID-19 spread: formal vs. informal institutions
Abstract:
We investigate the effect of culture on COVID-19 spread using a sample of 67 countries over the first 10 months of the pandemic. We find that individualistic countries have higher number of COVID-19 cases, an effect that is independent from formal institutions. A two-ways interaction effects, however, between formal institutions and individualism, shows that effective political institutions, sound governance, and better economic conditions reduce the effect on individualism on CVODI-19 spread. Our findings provide evidence that are useful not only for explaining differences in COVID-19 spread between countries but can also enable policymakers and organizations to understand what generally determines individuals’ compliance with formal rules and regulations.
Journal: Applied Economics
Pages: 4146-4163
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2125495
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2125495
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# input file: RAEC_A_2125493_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hai Hong Trinh
Author-X-Name-First: Hai Hong
Author-X-Name-Last: Trinh
Author-Name: Michael McCord
Author-X-Name-First: Michael
Author-X-Name-Last: McCord
Author-Name: Daniel Lo
Author-X-Name-First: Daniel
Author-X-Name-Last: Lo
Author-Name: Graham Squires
Author-X-Name-First: Graham
Author-X-Name-Last: Squires
Title: Do green growth and technological innovation matter to infrastructure investments in the era of climate change? Global evidence
Abstract:
This study investigates the nexus between green growth, technological innovations, and infrastructure investment trends, through an international investigation of 56 countries for the period of 2000–2020. Based on the Environmental Impact by Population, Affluence and Technology (IPAT) and Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) frameworks, the study looks at the nexus between infrastructure investments, green growth, and technological innovations in the era of climate change. We find that increases in global carbon emissions are associated with higher infrastructure investment needs for the sustainable development of the world’s economy. Besides global infrastructure investments for sustainable development goals (SDGs), the economic costs of climate change are also reflected in technological innovations across countries and sectors. With higher investments in technological innovations such as low-carbon infrastructure and energy technologies, we highlight the roles of environment-oriented R&D and taxes in our global sample. The findings are validated through utilising a set of econometric techniques and are particularly crucial to emerging economies, and pollutingeconomies with high climate risk exposure. SDGs. Our study provides a formal empirical investigation of climate change, investments in infrastructure, and green growth. We also provide critical policy implications, future directions, and agendas in sustainable green finance and climate economics.
Journal: Applied Economics
Pages: 4108-4129
Issue: 35
Volume: 55
Year: 2023
Month: 07
X-DOI: 10.1080/00036846.2022.2125493
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2125493
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Handle: RePEc:taf:applec:v:55:y:2023:i:35:p:4108-4129
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# input file: RAEC_A_2126817_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Author-Name: Ying Wu
Author-X-Name-First: Ying
Author-X-Name-Last: Wu
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Title: High-speed railway and rural poverty alleviation
Abstract:
This paper investigates the impact of high-speed railway (HSR) on rural poverty alleviation in China. Using a large sample of Chinese prefecture-level cities for the 2003–2013 period, we provide evidence that HSR has a positive effect on rural poverty alleviation. This finding is robust to a battery of robustness tests. In addition, we find that HSR can reduce rural poverty by improving employment rates in the manufacturing and construction industries. Our study suggests that HSR can play an important role in rural poverty alleviation.
Journal: Applied Economics
Pages: 4165-4176
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2126817
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2126817
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# input file: RAEC_A_2128175_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Giulio Fusco
Author-X-Name-First: Giulio
Author-X-Name-Last: Fusco
Author-Name: Pierluigi Toma
Author-X-Name-First: Pierluigi
Author-X-Name-Last: Toma
Author-Name: Yari Vecchio
Author-X-Name-First: Yari
Author-X-Name-Last: Vecchio
Title: Efficiency, gender diversity and public aid: evidence from Italian agrifood sector
Abstract:
The aim of this empirical analysis is to assess the economic efficiency of Italian farms across provinces, to determine whether production efficiency is correlated with gender differences in farm ownership and the level of European agricultural subsidies received. This study uses a bootstrap-Data Envelopment Analysis (DEA) approach to analyse data collected from the Farm Accountancy Data Network. The data show that male-led farms are dominant throughout Italy and are generally more efficient than female-led farms. However, northern region farms are relatively more productive than southern region farms, despite male-led farms being less dominant in the north than in the south. Further, while male-led farms were more predominant in the south, and receive the greatest share of European agricultural assistance per province, they are relatively less efficient. These results imply that refocusing entrepreneurial and financial assistance to northern region farms, with a relatively higher ratio of female-led farming operations, can promote overall Italian agricultural efficiency while also decreasing the gender gap in agricultural efficiency that exists between male-led and female-led Italian farms.
Journal: Applied Economics
Pages: 4177-4193
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128175
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128175
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# input file: RAEC_A_2128179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Woo Jae Lee
Author-X-Name-First: Woo Jae
Author-X-Name-Last: Lee
Author-Name: Seung Uk Choi
Author-X-Name-First: Seung Uk
Author-X-Name-Last: Choi
Title: Abnormal audit fees and accounting quality: further evidence from audit hours
Abstract:
This study examines whether auditors compromise accounting quality by charging abnormally high audit fees. In particular, by drawing on the audit pricing theory, we investigate the relationship between abnormal audit fees and accounting quality, using fee residuals derived from an audit fee model that includes audit hours and hourly fees. Using listed firms in the Korean stock market, we find that the negative relationship between abnormal audit fees and accounting quality does not hold when we use abnormal audit fees estimated after controlling for audit hours. In contrast, we find a negative association between abnormally high audit fees, estimated after controlling for hourly fees, and accounting quality. Collectively, these findings support the interpretation that the negative relationship between abnormal audit fees and accounting quality, identified in previous studies, is driven by increased audit hours owing to lower accounting quality. Furthermore, we find that these results are driven by audit partner hours and senior auditor hours rather than junior auditor hours. This suggests that audit firms impose higher-level audit hours in the presence of low accounting quality, which results in higher audit fees.
Journal: Applied Economics
Pages: 4239-4257
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128179
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128179
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# input file: RAEC_A_2128176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenjing Geng
Author-X-Name-First: Wenjing
Author-X-Name-Last: Geng
Author-Name: Xin Zhao
Author-X-Name-First: Xin
Author-X-Name-Last: Zhao
Author-Name: Xiaoxiao Zhou
Author-X-Name-First: Xiaoxiao
Author-X-Name-Last: Zhou
Title: Research on extreme risk measurement in the international carbon emission futures market, based on a two-component Beta-Skew-t-EGARCH-POT model
Abstract:
The European Union Allowance (EUA)-driven carbon emissions trading market is selected as a research object. First, the one-component and two-component Beta-Skew-t-EGARCH models are used to depict the characteristics of the return series, considering return series features such as volatility clustering and asymmetry. Moreover, the extreme VaR risk value is directly estimated. Then, the POT method of extreme value theory is applied to describe the extreme tail characteristics of the return series, and the one-component and two-component Beta-Skew-t-EGARCH-POT models constructed, to estimate the extreme VaR risk value, once again. Finally, the performance of each model in extreme VaR risk measurement is tested using six indicators that include the relative error rate, independence test, and dynamic quantile test. The empirical results show that the two-component Beta-Skew-t-EGARCH-POT model performs better in extreme risk measurement, inferring that this model is better suited to describing risk in the carbon market.
Journal: Applied Economics
Pages: 4194-4203
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128176
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128176
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# input file: RAEC_A_2128177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenjing Ouyang
Author-X-Name-First: Wenjing
Author-X-Name-Last: Ouyang
Author-Name: Samuel Szewczyk
Author-X-Name-First: Samuel
Author-X-Name-Last: Szewczyk
Author-Name: Thanh Ngo
Author-X-Name-First: Thanh
Author-X-Name-Last: Ngo
Title: Assortative matching in merging firms’ stock price informativeness
Abstract:
Developed upon the assortative matching theory and recent studies that merging firms are matched on diverse firm characteristics and policies, this paper examines whether they also match in stock price informativeness. Our study shows that assortative matching between the acquirer and target firms’ stock price informativeness increases the probability of deal initiation. It also increases the likelihood that an M&A transaction is paid with stock and constructed as a negotiated merger. Finally, matched stock price informativeness increases merger wealth effect. This paper expands the application of the assortative matching theory in M&A literature from the perspective that stock price firm-specific information reflects firm fundamentals and policies.
Journal: Applied Economics
Pages: 4204-4227
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128177
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128177
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# input file: RAEC_A_2128178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bana Abuzayed
Author-X-Name-First: Bana
Author-X-Name-Last: Abuzayed
Author-Name: Nedal Al-Fayoumi
Author-X-Name-First: Nedal
Author-X-Name-Last: Al-Fayoumi
Title: Diversification and hedging strategies of green bonds in financial asset portfolios during the COVID-19 pandemic
Abstract:
In this paper, we investigate whether investors can reap potential diversification or hedging benefits from holding green bonds in a portfolio containing a conventional financial asset during the COVID-19 pandemic. Using data from 6 November 2014 to 5 November 2020, we estimate corrected dynamic conditional correlation between between green bonds and four major asset classes: stocks, corporate bonds, commodities, and clean energy. We extend our analysis by using these correlations to examine hedging, optimal portfolio weights, and naïve strategies and evaluate their implications for investors by calculating hedging effectiveness and utility gain improvement. Results reveal that across the full sample, pre-COVID-19, and during-COVID-19 periods, optimal portfolio weights represent an ideal strategy to realize the greatest risk reduction and risk-adjusted return. Further, green bonds could add substantial diversification benefits for investors holding assets in clean energy, global stocks, and commodities.
Journal: Applied Economics
Pages: 4228-4238
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128178
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128178
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# input file: RAEC_A_2128180_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Antonella Biscione
Author-X-Name-First: Antonella
Author-X-Name-Last: Biscione
Author-Name: Dorothée Boccanfuso
Author-X-Name-First: Dorothée
Author-X-Name-Last: Boccanfuso
Author-Name: Annunziata de Felice
Author-X-Name-First: Annunziata
Author-X-Name-Last: de Felice
Author-Name: Francesco Porcelli
Author-X-Name-First: Francesco
Author-X-Name-Last: Porcelli
Title: Barriers to firms’ energy efficiency in transition countries
Abstract:
This study seeks to explore the firm’ barriers of energy efficiency in a set of 28 Transition economies exploiting the enterprise survey data collected by the European Bank for Reconstruction and Development (EBRD) jointly with the European Investment Bank (EIB) and the World Bank Group (WBG). Based on the Ordinary Least Squares (OLS) regression model and on the construction of three different indicators to evaluate the energy efficiency, we find that the barriers to the adoption of energy efficiency measures mainly lack financial resources and profitability. Findings obtained from the interactions are also worthy of note. In particular, we find that the absence of profitability starts being stronger for non-EU countries. Instead, there is no evidence of heterogenous effects for industry sectors.
Journal: Applied Economics
Pages: 4258-4272
Issue: 36
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128180
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128180
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# input file: RAEC_A_2128181_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abdoulganiour Almame Tinta
Author-X-Name-First: Abdoulganiour Almame
Author-X-Name-Last: Tinta
Title: Are more educated people more likely to engage in terrorism
Abstract:
This study examines the connection between education and terrorism. By using information provided by the police and the army during the various terrorist assaults in the Sahel region and the filtering method, we build a micro data set from 2019 to 2021 from interventions in Burkina Faso, Niger, and Mali. Implementing several models, we find a positive association between education and terrorism which suggests that more educated people are more likely to engage in terrorism. We also find that terrorists are generally active in the labour market. These results are associated with socio-economic and demographic characteristics of the individual and institutional framework, especially attendance to religious school, gender, age, and the presence of law enforcement in the attack place. Furthermore, we provide evidence that unlike ”the old paradigm”, terrorists come more from urban than rural areas and are sensitive to spatial heterogeneity which contributes to reduce their motivation. The negative binomial results confirm that the higher the level of education of the terrorist, the greater the number of victims. Educated terrorists cause the most damage and are the most dangerous. In view of the results, policies are suggested.
Journal: Applied Economics
Pages: 4273-4288
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128181
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128181
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# input file: RAEC_A_2128293_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Edmond Berisha
Author-X-Name-First: Edmond
Author-X-Name-Last: Berisha
Author-Name: Ram Sewak Dubey
Author-X-Name-First: Ram
Author-X-Name-Last: Sewak Dubey
Author-Name: Orkideh Gharehgozli
Author-X-Name-First: Orkideh
Author-X-Name-Last: Gharehgozli
Title: Inflation and income inequality: does the level of income inequality matter?
Abstract:
Given the complexity of interaction between inflation and inequality, we examine whether the impact of inflation on inequality differs among distinct levels of income inequality across the US states. Results reveal that there is a negative contemporaneous effect of inflation on the inequality which becomes stronger with higher levels of income inequality. However, over a one year period, we find higher inflation rate to further increase income inequality only when income inequality is initially relatively low.
Journal: Applied Economics
Pages: 4319-4330
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128293
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128293
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# input file: RAEC_A_2128184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ramy El-Dardiry
Author-X-Name-First: Ramy
Author-X-Name-Last: El-Dardiry
Author-Name: Benedikt Vogt
Author-X-Name-First: Benedikt
Author-X-Name-Last: Vogt
Title: How far do Gazelles run? - growth patterns of regular firms, high growth firms and startups
Abstract:
High growth firms receive a lot attention from policy and academia. In this paper we investigate the general validity of an investor startup database in studying high growth firms and growth persistence. To do so, we match Dutch administrative firm level panel data with this startup database. We establish two main facts. First, although the vast majority of high growth firms in the Dutch economy does not appear in the database, included firms do have a higher probability of being a high growth firm. Second, in contrast to regular Dutch firms and previous findings in the literature, startups show a strikingly persistent growth pattern: their growth phases are prolonged. We conclude that commercial startup databases can complement more traditional data sources, but interpretation requires care due to unclear selection in the database.
Journal: Applied Economics
Pages: 4304-4318
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128184
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128184
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# input file: RAEC_A_2128296_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Saroja Selvanathan
Author-X-Name-First: Saroja
Author-X-Name-Last: Selvanathan
Author-Name: Maneka Savithri Jayasinghe
Author-X-Name-First: Maneka Savithri
Author-X-Name-Last: Jayasinghe
Author-Name: Eliyathamby A Selvanathan
Author-X-Name-First: Eliyathamby A
Author-X-Name-Last: Selvanathan
Author-Name: Syed Ali Abbas
Author-X-Name-First: Syed Ali
Author-X-Name-Last: Abbas
Author-Name: Md Sayed Iftekhar
Author-X-Name-First: Md Sayed
Author-X-Name-Last: Iftekhar
Title: Energy consumption, agriculture, forestation and CO2 emission nexus: an application to OECD countries
Abstract:
The Environmental Kuznets Curve (EKC) hypothesis has been used to explain the relationship between environmental degradation and economic condition. This study formulates an augmented EKC framework to incorporate the effect of agriculture, forestation and energy consumption on CO2 emission and estimates the model using the data from 24 OECD countries between 1990 and 2018. The study utilizes individual-country analysis and panel dynamic analysis for the empirical investigation. The results show a positive relationship between CO2 emission and fossil fuel use – a 1% increase in fossil fuel consumption will increase CO2 emission by 0.76%, and a negative relationship with renewable energy – a 1% increase in renewable energy consumption will reduce CO2 emission by 0.14%. The impact of forest cover and agricultural production on CO2 emission is mixed at the single-country level. The panel fixed-effect results reveal that a 1% increase in agricultural production and forest cover leads to a 0.04% and 0.63% increase in CO2 emission, respectively. There is also strong evidence supporting the presence of the EKC hypothesis. The global CO2 emission reduction strategies, such as carbon taxes and emission trading schemes, must acknowledge and incorporate the interplay among -key macro-level variables revealed in this study to enhance their effectiveness.
Journal: Applied Economics
Pages: 4359-4376
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128296
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128296
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# input file: RAEC_A_2128295_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: David Meenagh
Author-X-Name-First: David
Author-X-Name-Last: Meenagh
Author-Name: Patrick Minford
Author-X-Name-First: Patrick
Author-X-Name-Last: Minford
Title: A structural model of coronavirus behaviour: what do four waves of Covid tell us?
Abstract:
This paper extends Meenagh and Minford (2021) to the four waves of infection in the UK by end-2021, using the unique newly available sample-based estimates of infections created by the ONS. These allow us to estimate the effects on the Covid hospitalization and fatality rates of vaccination and population immunity due to past infection: the latter was the most significant factor driving both trends, while the vaccination rate also had a significant short-run effect on the fatality rate. We also updated our policy comparison with Sweden for the most recent data, with similar conclusions: lower Swedish lockdown intensity relative to personal response in waves 1 and 2 caused much lower economic costs with no discernible effect on infections.
Journal: Applied Economics
Pages: 4348-4358
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128295
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128295
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# input file: RAEC_A_2128294_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ali Zeytoon-Nejad
Author-X-Name-First: Ali
Author-X-Name-Last: Zeytoon-Nejad
Author-Name: Barry K. Goodwin
Author-X-Name-First: Barry K.
Author-X-Name-Last: Goodwin
Author-Name: Sujit Ghosh
Author-X-Name-First: Sujit
Author-X-Name-Last: Ghosh
Title: Generalizing the General: generalizing the CES production function to allow for the viability of input thresholds
Abstract:
The original specification of the Constant-Elasticity-of-Substitution (CES) production function introduced by Arrow, Chenery, Minhas, and Solow is considered to be a general production specification that nests multiple types of production functions, i.e. Leontief, Cobb-Douglas, and linear. However, even this general specification of production functions is restrictive in several ways. This paper proposes a generalized variant of the CES production function that allows for the inclusion of the minimum required levels of inputs. Not allowing for this potential attribute is, in fact, one shortcoming of the original CES production-function specification, which in turn could result in misleading conclusions about essential levels of inputs. Accordingly, a solution is proposed to overcome the mentioned shortcoming. Input thresholds are incorporated in the CES production specification, and empirical applications are provided for irrigation and nitrogen. To illustrate the proposed approach in this paper, two empirical applications in irrigation and fertilizer response using the famous Hexem-Heady experimental dataset as well as several datasets produced using Monte-Carlo experiments with different data-generating processes are provided. Finally, implications for modelling input thresholds are considered and discussed.
Journal: Applied Economics
Pages: 4331-4347
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128294
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128294
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# input file: RAEC_A_2128183_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuri Salazar Flores
Author-X-Name-First: Yuri
Author-X-Name-Last: Salazar Flores
Author-Name: Adán Díaz Hernández
Author-X-Name-First: Adán
Author-X-Name-Last: Díaz Hernández
Author-Name: Luis Alberto Quezada-Téllez
Author-X-Name-First: Luis Alberto
Author-X-Name-Last: Quezada-Téllez
Author-Name: Oralia Nolasco Jáuregui
Author-X-Name-First: Oralia
Author-X-Name-Last: Nolasco Jáuregui
Title: The use of the tail dependence function for high quantile risk measure analysis: an application to portfolio optimization
Abstract:
Adequate risk modelling in a financial portfolio has become the central part of its analysis. To this end, risk measures have proven to be very effective. However, the efficiency of these measures lies in the accurate modelling of both the individual behaviour as well as the dependence between the assets. In particular, tail dependence has become crucial in analysing Value at Risk (VaR) and the Expected Shortfall (ES) in high quantiles. This study introduces a new methodology to estimate high quantile risk measures based on the Tail Dependence Function. With this function, we can estimate asset dependence by focusing on replicating the extreme behaviour. In an empirical study, we estimate the VaR and ES of a portfolio of stock indices during the current pandemic considering our approach along with the most traditional GARCH-Copula and historical approaches as benchmark estimators. Our approach yields superior estimators with respect to the benchmark estimators in high quantiles.
Journal: Applied Economics
Pages: 4289-4303
Issue: 37
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128183
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128183
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# input file: RAEC_A_2129568_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Taniya Ghosh
Author-X-Name-First: Taniya
Author-X-Name-Last: Ghosh
Author-Name: Masudul Hasan Adil
Author-X-Name-First: Masudul Hasan
Author-X-Name-Last: Adil
Title: Money’s predictive role in output: evidence from recent data
Abstract:
We measure and assess the predictive performance of money in explaining output for the US, the UK, the Euro Area and Poland. Our approach, which uses more recent data and a larger set of areas, focuses on whether money ‘Granger causes’ output while taking into account the statistical properties of the data, which has implications for Granger causality tests. In addition to simple sum monetary aggregates, we use Divisia monetary aggregates, which are theoretically shown to be the actual measure of monetary services. Our results confirm that movements in money are still relevant in explaining movements in output, particularly when Divisia monetary aggregate is used. While the models using ‘narrow’ money, both simple sum and Divisia, provide mixed evidence of support, what appears to be robust across countries, is the predictive power of ‘broad Divisia’ in explaining output. Furthermore, our research finds no evidence that the statistical significance of money decreases as more variables are added to the model, or models with level variables produce more significant results than models with growth variables. In fact, rather than the level of money, it is the growth rate of money and the deviation of the growth rate of money from its time trend, which ‘Granger causes’ output.
Journal: Applied Economics
Pages: 4415-4440
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129568
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129568
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# input file: RAEC_A_2129041_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Isabelle Cadoret
Author-X-Name-First: Isabelle
Author-X-Name-Last: Cadoret
Author-Name: Jacques Minlend
Author-X-Name-First: Jacques
Author-X-Name-Last: Minlend
Author-Name: Tovonony Razafindrabe
Author-X-Name-First: Tovonony
Author-X-Name-Last: Razafindrabe
Title: Uncertainty diffusion across commodity markets
Abstract:
While numerous studies investigate volatility transmission across commodity markets, particularly oil and agricultural markets, uncertainty diffusion across commodity markets remains absent from the literature. This circumstance is primarily related to the lack of appropriate measures of commodity price uncertainty, which differs from volatility. This study focuses on measuring commodity price uncertainty and how it is transferred from one commodity market to another. Our contributions are twofold. (i) We construct an aggregate predictability-based measure of uncertainty for each group of commodity markets and different maturities, and (ii) we analyse uncertainty diffusion across different commodity markets using a vector autoregressive model. Our findings clearly demonstrate a bi-causal uncertainty transfer between agriculture, energy, and industrial markets, excluding precious metals markets. Additionally, the industrial commodity market is assumed to be the transmission channel of commodity uncertainty spread, given its close link with global economic activity. Notably, we validate the efficacy of using industrial uncertainty as a proxy for macroeconomic uncertainty. Finally, our confirmation of precious metals’ insensitivity to other markets’ shocks reinforces its nature as a safe haven.
Journal: Applied Economics
Pages: 4377-4401
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129041
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129041
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# input file: RAEC_A_2129569_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Martina Celidoni
Author-X-Name-First: Martina
Author-X-Name-Last: Celidoni
Author-Name: Angelica Guzzon
Author-X-Name-First: Angelica
Author-X-Name-Last: Guzzon
Author-Name: Vincenzo Rebba
Author-X-Name-First: Vincenzo
Author-X-Name-Last: Rebba
Title: Health literacy and education: evidence from the English Longitudinal Study of Ageing
Abstract:
We estimate the causal effect of compulsory schooling on health literacy using data from the English Longitudinal Study of Ageing. We exploit the quasi-experimental setting produced by the UK’s 1944 Education Act. We estimate a positive effect of one additional year of schooling on health literacy among women, no significant effects among men. This result is in line with previous findings about the positive effects of compulsory schooling on own health among women and supports the idea that more schooling might have generated efficiency gains in the health production due to improved health literacy.
Journal: Applied Economics
Pages: 4441-4454
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129569
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129569
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Handle: RePEc:taf:applec:v:55:y:2023:i:38:p:4441-4454
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# input file: RAEC_A_2129572_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Feng Jin
Author-X-Name-First: Feng
Author-X-Name-Last: Jin
Author-Name: Jingwei Li
Author-X-Name-First: Jingwei
Author-X-Name-Last: Li
Author-Name: Guangchen Li
Author-X-Name-First: Guangchen
Author-X-Name-Last: Li
Title: Connectedness between crude oil, coal, rare earth, new energy and technology markets: a GARCH-vine-copula-EVT analysis
Abstract:
In recent years, climate change has attracted great attention from governments and promoted the booming of the new energy market indirectly. However, this market will be influenced by traditional energy, rare earth and technology markets. Hence, it is necessary to incorporate these markets into an analytical framework simultaneously and analyse their relationships. Based on the GARCH-vine-copula-EVT model considering extreme risks, we investigate the connectedness between crude oil, coal, rare earth, new energy, and technology markets. The results show that the technology market is most closely associated with the new energy market; the rare earth market reacts as an intermediary market between the new energy market and fossil fuel markets. When taking the rare earth market as the conditional market, the connectedness between the new energy and the other four markets weakens and even becomes negative. Besides, we find that the COVID-19 epidemic has increased the connectedness between these target markets. Finally, the backtesting results of value at risk and expected shortfall show that the GARCH-vine-copula-EVT model considering extreme risks can depict the risk dependence structure between these target markets well. Our study has important reference significance for market participants, risk managers and investors.
Journal: Applied Economics
Pages: 4469-4485
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129572
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129572
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# input file: RAEC_A_2129570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Tor Eriksson
Author-X-Name-First: Tor
Author-X-Name-Last: Eriksson
Title: Maternal education, child health and nutrition — evidence from China’s compulsory education law
Abstract:
The effect of maternal education on child health in China is studied by exploiting a change in the Compulsory Education Law from 1986. Data from four waves (2004–2011) of the China Health and Nutrition Survey are used. Variations across cohorts and provinces induced by the timing of the reform are used as instrumental variables to account for the endogeneity of education. Results show that mothers’ educational attainment has significant and sizable positive effects on their children’s health, as measured by height, weight and BMI Z-scores. Maternal education is associated with improved food structure (increased consumption of meat, egg, and dairy products) and healthier nutrient intake (increased share of calorie obtained from fat and proteins) of their offspring. Mothers who were exposed to the education reform are more knowledgeable about healthy diets and healthy behaviours than those not exposed and hence had fewer years of schooling.
Journal: Applied Economics
Pages: 4455-4468
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129570
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129570
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# input file: RAEC_A_2129042_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hokuto Ishii
Author-X-Name-First: Hokuto
Author-X-Name-Last: Ishii
Title: Yield curve shapes and foreign exchange rates: the term structure of interest rates model approach
Abstract:
Exchange rates play a crucial role in the international economy. This study investigates the explanatory power of yield curve factors in exchange rate predictions for countries in three currency pairs: Japanese yen (JPY)–US dollar (USD), British pound (GBP)–USD, and Canadian dollar (CAD)–USD. The results empirically establish that each country’s yield curve factors, extracted from the term structure of interest rates model, play a key role in determining future exchange rates. Specifically, an increase in the US level factor causes depreciation in the USD relative to the JPY for the full sample period (June 1994–October 2020) and in the GBP and CAD for the post-global financial crisis period. The study’s model provides more useful information than the baseline uncovered interest rate parity model for explaining the variations in the three currency pairs. Additionally, the yield curve factors also explain the variation in countries’ excess currency returns. This study has important theoretical implications for identifying which of the two countries’ yield curve factors predominantly explain the exchange rate changes and the related policy implications. It also provides key policy insights by substantiating the association between macroeconomic variables and exchange rate changes.
Journal: Applied Economics
Pages: 4402-4414
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129042
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129042
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# input file: RAEC_A_2128297_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaohang Ren
Author-X-Name-First: Xiaohang
Author-X-Name-Last: Ren
Author-Name: Yue Dou
Author-X-Name-First: Yue
Author-X-Name-Last: Dou
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Cheng Yan
Author-X-Name-First: Cheng
Author-X-Name-Last: Yan
Title: Spillover effects among crude oil, carbon, and stock markets: evidence from nonparametric causality-in-quantiles tests
Abstract:
This study investigates the spillovers and information transmission between carbon, crude oil, and stock markets under various market conditions in Phase III of the EU ETS. For this purpose, we use a novel causality-in-quantiles test method and quantile impulse response functions based on daily data of carbon futures, Brent spot, and three representative equity indices in the Europe over the period from 27 January 2014 to 18 September 2020. We find that crude oil market has a unidirectional spillover effect on carbon market, and this causality is significant under normal to bullish market conditions. Furthermore, the causality-in-quantiles between crude oil and stock markets varies with specific equality index, and the information transmission from crude oil to stock market is strong in the normal stock market but invalid when stock markets become extremely bearish or bullish. The COVID-19 epidemic may cause structural changes in the oil-carbon and oil-stock nexus.
Journal: Applied Economics
Pages: 4486-4509
Issue: 38
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2128297
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2128297
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# input file: RAEC_A_2130145_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shaoyan Sun
Author-X-Name-First: Shaoyan
Author-X-Name-Last: Sun
Author-Name: Xinjian Zhang
Author-X-Name-First: Xinjian
Author-X-Name-Last: Zhang
Author-Name: Hung-Chun Liu
Author-X-Name-First: Hung-Chun
Author-X-Name-Last: Liu
Author-Name: Min Hua
Author-X-Name-First: Min
Author-X-Name-Last: Hua
Title: News sentiment and crash risk
Abstract:
This paper uses firm-specific released news data in the Chinese market to examine the relationship between news sentiment and stock price crash risk between 2007 and 2017. To do so, we develop a firm-specific news sentiment index by quantifying the textual contents in the news. Our results show that firms with better news sentiment are less likely to be involved in future stock crash risk. Also, we find that CEOs approaching retirement are an important mechanism for explaining the relationship between news sentiment and firm crash risk. Our main findings still hold after conducting several robustness tests.
Journal: Applied Economics
Pages: 4586-4594
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130145
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130145
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# input file: RAEC_A_2129575_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Markus Brueckner
Author-X-Name-First: Markus
Author-X-Name-Last: Brueckner
Author-Name: Wensheng Kang
Author-X-Name-First: Wensheng
Author-X-Name-Last: Kang
Author-Name: Joaquin Vespignani
Author-X-Name-First: Joaquin
Author-X-Name-Last: Vespignani
Title: Covid-19 and Firms’ Stock Price Growth: The Role of Market Capitalization
Abstract:
This paper studies the role of capitalization on firms’ stock price growth in response to new cases of Covid-19 infections in the United States. Controlling for firm and time fixed effects, our panel model estimates show that the effect of new cases of Covid-19 infections on firms’ stock price growth is significantly increasing in capitalization: For each one standard deviation increase in capitalization, a one standard deviation increase in new cases of Covid-19 infections increases the weekly growth rate of firms’ stock prices by about 0.7% points. Effects of capitalization on the impact that Covid-19 infections have on firms’ stock price growth are largest in the travel, tourism, and hospitality sector. Smaller but still positive effects of capitalization are present in the pharmaceutical products, high-tech, and banking and finance sectors. The results are robust to controlling firms’ elasticity of demand, productivity, financial constraints, managerial compensations, and aggregate money growth and economic activity.
Journal: Applied Economics
Pages: 4522-4538
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129575
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129575
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# input file: RAEC_A_2130144_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhefan Piao
Author-X-Name-First: Zhefan
Author-X-Name-Last: Piao
Author-Name: Cecheng Wu
Author-X-Name-First: Cecheng
Author-X-Name-Last: Wu
Author-Name: Ning Su
Author-X-Name-First: Ning
Author-X-Name-Last: Su
Author-Name: Yueqin Lin
Author-X-Name-First: Yueqin
Author-X-Name-Last: Lin
Author-Name: Zihan Zheng
Author-X-Name-First: Zihan
Author-X-Name-Last: Zheng
Title: Financial constraints, capital misallocation and firm’s total factor productivity (TFP) loss – empirical evidence from listed manufacturing companies in China
Abstract:
Based on the theoretical mechanism that ‘financing constraints (investment-cash flow sensitivity) → capital misallocation → firm’s total factor productivity’ and ADL(2,2) model, implied cost model, total factor productivity model, panel regression model and mediation effect model, we empirically investigate the impact of financing constraints on TFP loss and the mediating effect of capital misallocation. Finance and market transaction data for manufacturing companies listed on Shanghai and Shenzhen stock exchanges during 2009–2019 are used in the empirical study. Chinese manufacturing companies were shown to have investment-cash flow sensitivity. The empirical analysis proved that financing constraints not only have direct negative impact on the firm’s TFP directly but also negatively affect the TFP by the mediating effect of capital misallocation. Moreover, firm heterogeneity analysis showed that the above two impacts were greater for non-stated owned firms, small and medium-sized firms, and young firms than stated-owned firms, big firms and mature firms.
Journal: Applied Economics
Pages: 4572-4585
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130144
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130144
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Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4572-4585
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# input file: RAEC_A_2129577_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Risto Herrala
Author-X-Name-First: Risto
Author-X-Name-Last: Herrala
Author-Name: Rima Turk Ariss
Author-X-Name-First: Rima
Author-X-Name-Last: Turk Ariss
Title: Debt limits and monetary policy during the euro area crisis
Abstract:
We study the debt limits of non-financial firms, and the influence of monetary policy via this channel during the global financial crisis in the euro area. The estimations indicate that monetary policy was initially effective in fending of a fall in the debt limits. After the monetary policy channel peaked in the vicinity of the zero-lower bound, however, the debt limits of non-financial firms contracted by almost a fifth. The tightening of the debt limits directly influenced firms that hold almost a tenth of corporate assets. The estimations furthermore provide evidence of structural shifts in credit use that contributed to the sluggish economic dynamism during the crisis period.
Journal: Applied Economics
Pages: 4563-4571
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129577
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129577
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Handle: RePEc:taf:applec:v:55:y:2023:i:39:p:4563-4571
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# input file: RAEC_A_2130146_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shiwei Yu
Author-X-Name-First: Shiwei
Author-X-Name-Last: Yu
Author-Name: Xing Hu
Author-X-Name-First: Xing
Author-X-Name-Last: Hu
Author-Name: Jie Liu
Author-X-Name-First: Jie
Author-X-Name-Last: Liu
Title: Determinants of wind power curtailment in China: evidence from provincial panel data
Abstract:
Identifying the determinants of wind curtailment is crucial to mitigating the overcapacity of wind power and achieving a low-carbon transition in China’s economy. Existing literature sorted out various factual causes of wind curtailment, but recognizing key factors and revealing their economic mechanisms are missing. Based on power market equilibrium theory, we address the issue by comparing the marginal effects of factors in a ‘supply-transmission-demand’ framework. Using the panel Tobit model with bootstrap standard errors, we find that variable wind resources and wind power supply capacity are the main determinants of curtailment. The wind power equipment utilization is significantly and negatively related to wind curtailment rate, suggesting that the variable wind resources inhibit wind power consumption from electricity security concerns and increasing costs of grid companies. The wind power supply capacity positively affects wind curtailment by directly spurring market structural disequilibrium and resource waste. We also find that policy intensity has a negative but relatively slight role, whereas wind power price does not affect curtailment due to government pricing.
Journal: Applied Economics
Pages: 4595-4608
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130146
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130146
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# input file: RAEC_A_2129574_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lorenzo Bermejo
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Bermejo
Author-Name: Maria Malmierca-Ordoqui
Author-X-Name-First: Maria
Author-X-Name-Last: Malmierca-Ordoqui
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: Unemployment and COVID-19: an analysis of change in persistence
Abstract:
This paper examines the degree of persistence in monthly unemployment rates for a group of 24 European countries along with the global rate for the Euro area, the European Union, the G7 and the OECD countries. For this purpose, fractionally integrated methods are employed. Using data from January 2010 to November 2020, our results indicate that fractional integration is present in all countries examined, with the orders of integration of the series ranging in the (0, 1) interval. Comparing the data before COVID-19 with those including it, the significant time trend coefficient and the mean reverting property disappear in most cases when COVID-19 data are considered. This implies that governments should consider that, after the pandemic, shocks on the labour market will have permanent effects. Thus, policies should address unemployment accordingly. Our work, however, does not focus on the analysis of nonlinearities, what could provide a more complete understanding of the series behaviour.
Journal: Applied Economics
Pages: 4511-4521
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129574
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129574
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# input file: RAEC_A_2129576_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: M. Djiguemde
Author-X-Name-First: M.
Author-X-Name-Last: Djiguemde
Author-Name: D. Dubois
Author-X-Name-First: D.
Author-X-Name-Last: Dubois
Author-Name: A. Sauquet
Author-X-Name-First: A.
Author-X-Name-Last: Sauquet
Author-Name: M. Tidball
Author-X-Name-First: M.
Author-X-Name-Last: Tidball
Title: Individual and strategic behaviors in a dynamic extraction problem: results from a within-subject experiment in continuous time
Abstract:
We conduct a laboratory experiment to test a continuous-time model that represents a dynamic groundwater extraction problem in an infinite horizon. We compare the observations to the equilibrium path of the usual behaviours, for the case where the player is alone in extracting the resource (optimal control) and when two players extract the same resource simultaneously (differential game). We use a within-subjects design. This allows us to identify individual profiles of players playing alone and then characterize groups based on their composition with respect to these individual behaviours. We find that approximately a quarter of the players and groups succeed in playing (significantly) optimally, and none behave myopically. Moreover having an agent that behaved optimally in the control in the pair increases the likelihood that the group cooperates. We also identify other categories of players and groups that allows us to classify an additional 50% of the observations.
Journal: Applied Economics
Pages: 4539-4562
Issue: 39
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2129576
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2129576
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# input file: RAEC_A_2130871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xing Chen
Author-X-Name-First: Xing
Author-X-Name-Last: Chen
Author-Name: Chenchen Li
Author-X-Name-First: Chenchen
Author-X-Name-Last: Li
Author-Name: Chongfeng Wu
Author-X-Name-First: Chongfeng
Author-X-Name-Last: Wu
Title: Worldwide earnings news and equity price movement: a supply-chain perspective
Abstract:
This paper shows that worldwide earnings news can significantly influence the asset pricing in China, indicating the information transmission along the global supply chain. We investigate how stock prices of Chinese-listed firms react to the earnings announcements of their worldwide supply-chain partners and find that stock returns will exhibit a significant drift upwards (downwards) after the good (bad) news of their customers and suppliers. Moreover, we provide evidence that the equity price movement may be driven by the earnings information transmission between supply-chain partners and this effect is strengthened for the firms with higher information asymmetry or investor attention. Third, our primary results hold with a battery of robustness checks, including multiple controls consideration, proxy usage of earnings news, division of the sample, and length of market responses.
Journal: Applied Economics
Pages: 4695-4711
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130871
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130871
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# input file: RAEC_A_2130147_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Evangelos M. Falaris
Author-X-Name-First: Evangelos M.
Author-X-Name-Last: Falaris
Title: Children’s school attendance, work, health and rainfall shocks in Ethiopia
Abstract:
The relationship between rainfall and primary-school-age children’s school attendance, school absence, work and health in rural Ethiopia is investigated. The focus is on how these relationships may differ by children’s gender. An increase in rainfall relative to longer-term average rainfall is associated with increased school attendance by girls and decreased school attendance by boys. An increase in rainfall is associated with increased probability of working by boys and decreased probability of working by girls; no significant change in weekly hours worked by boys and decreased work hours by girls. The implication for boys is that more of them work when there is more rainfall, but those already working work fewer hours. An increase in rainfall frees girls’ time, so they can potentially devote more attention to their schooling. An increase in rainfall is associated with lower school enrolment by boys but fewer hours of work for those already working. In terms of human capital acquisition, these two forces work in opposite ways for boys. An implication of these findings is that policies that offset income shocks arising from reduced rainfall are expected to result in increase in girls’ human capital and potentially reduce future gender economic disparities.
Journal: Applied Economics
Pages: 4609-4624
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130147
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130147
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# input file: RAEC_A_2130152_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bruce T. Lamont
Author-X-Name-First: Bruce T.
Author-X-Name-Last: Lamont
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Jack I. Richter
Author-X-Name-First: Jack I.
Author-X-Name-Last: Richter
Title: Self-employment, income, and poor with disabilities: the 2016 inclusion of people with disabilities act in Brazil
Abstract:
We exploit the implementation of the Inclusion of People with Disabilities Act in Brazil in early 2016 and use stigma theory to focus on the poor with disabilities, a double-stigmatized group, in a developing country setting. We hypothesize after the passage of the law, the poor with disabilities will pursue more self-employment than employment, but their income will remain low, with only the income of the employed improving. Contrary to expectations, the results show that the odds of self-employment were not higher than employment after the law. But as predicted, only the income of the employed improved, with the income gap between the employed and self-employed with disabilities growing wider after the passage of the law. The findings demonstrate that the law mainly benefitted the poor with disabilities who were able to gain employment but not the self-employed.
Journal: Applied Economics
Pages: 4664-4677
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130152
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# input file: RAEC_A_2174942_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bingyan Zan
Author-X-Name-First: Bingyan
Author-X-Name-Last: Zan
Author-Name: Camilla Baasch Andersen
Author-X-Name-First: Camilla Baasch
Author-X-Name-Last: Andersen
Author-Name: Lisa Toohey
Author-X-Name-First: Lisa
Author-X-Name-Last: Toohey
Title: Assessing the efficacy of visual contracts: an empirical study of transaction costs
Abstract:
Visual contracts have attracted increasing attention as a human-focused approach to contract law, with proponents arguing they are a better way to effectively communicate complex terms and conditions. However, there have been only limited empirical studies of the efficacy of these contracts. This paper compares and evaluates data of responses to text and visual contracts from two large Australian companies. Drawing on theories of transaction cost economics, we undertook an empirical study of ordinary least square (OLS) regressions to examine the effectiveness of visual contracts in comparison with traditional text-based contracts. Analysis of the results demonstrates that the visual format plays a significant role in reducing the transaction costs of contracting, providing empirical confirmation of the value of contract redesign and the visual format.
Journal: Applied Economics
Pages: 4712-4726
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2023.2174942
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# input file: RAEC_A_2130870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chenggang Wang
Author-X-Name-First: Chenggang
Author-X-Name-Last: Wang
Author-Name: Keqiao Liu
Author-X-Name-First: Keqiao
Author-X-Name-Last: Liu
Author-Name: Huixia Wang
Author-X-Name-First: Huixia
Author-X-Name-Last: Wang
Title: The effects of temperature on sleep experience: evidence from China
Abstract:
A large body of literature estimates the high-temperature effects on a variety of economic and health outcomes. This paper provides convergent evidence of a possible working mechanism behind those effects. That is, upon examining nationally representative self-report measures in China, we studied the relationship between temperature and people’s sleep experience, an essential input for productivity and health outcomes. By analysing county-level daily temperature data and the CFPS self-reported sleep experience data, our findings indicate that high temperature can increase the probability of reporting poor sleep experiences in China. Additionally, elderly, lower educated, and rural residents may be more vulnerable to the damage of heatwaves. Our results imply that high temperature can adversely and significantly impact people’s sleep experience, though its effect can be partially offset by installing air conditioners.
Journal: Applied Economics
Pages: 4678-4694
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130870
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# input file: RAEC_A_2130151_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Piero Esposito
Author-X-Name-First: Piero
Author-X-Name-Last: Esposito
Author-Name: Sergio Scicchitano
Author-X-Name-First: Sergio
Author-X-Name-Last: Scicchitano
Title: Drivers of skill mismatch among Italian graduates: the role of personality traits
Abstract:
It is now well accepted that human capital is a heterogeneous aggregate and that noncognitive skills are at least as relevant as cognitive abilities. In spite of this growing interest in the labour market consequences of personality traits, the relationship between these and educational and skill mismatch is scant. In this paper, we investigate the impact of the five main personality traits (Big 5) on educational and skill mismatch in Italian graduates. To this aim, we use the 2018 wave of the INAPP-PLUS survey, which contains information on skill mismatch, on the Big 5 personality traits, and on a large number of other individual and job-specific characteristics. The empirical analysis takes into account both demand and supply variables mediating the effect of personality on skill mismatch and controls for non-random selection into employment and tertiary education. We find that some personality traits reduce the probability of overeducation, suggesting complementarity between cognitive and noncognitive skills. In addition, we find a positive effect of conscientiousness on both overeducation and overqualification. The evidence regarding job satisfaction suggests that individuals with high scores for conscientiousness voluntarily decide to be mismatched when this entails higher satisfaction in other dimensions of the job.
Journal: Applied Economics
Pages: 4642-4663
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130151
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# input file: RAEC_A_2130148_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhuo Cheng
Author-X-Name-First: Zhuo
Author-X-Name-Last: Cheng
Author-Name: Tajul Ariffin Masron
Author-X-Name-First: Tajul Ariffin
Author-X-Name-Last: Masron
Title: Economic policy uncertainty and corporate digital transformation: evidence from China
Abstract:
Digital transformation refers to the process of utilizing digital technology to develop new or enhance current business processes, organizational culture, and customer experiences to satisfy changing business and market requirements. Taking all non-financial Chinese A-share firms from 2010 to 2018 as the research sample, we investigate the impact of Economic Policy Uncertainty (EPU) on corporate digital transformation. Evidence shows that EPU has a significantly positive impact on corporate digital transformation. This result still holds after a series of robustness tests, such as employing alternative measures of key variables, controlling for various fixed effects, including possibly omitted variables and adopting estimation of instrumental variables in the 2SLS approach. In addition, market competition provides the primary channel through which EPU influences corporate digital transformation. Finally, the above EPU effect is more pronounced in firms with small size, non-SOEs, and firms with weak corporate governance. Overall, our results provide a novel explanation for the behaviour of corporate digital transformation in the emerging capital markets.
Journal: Applied Economics
Pages: 4625-4641
Issue: 40
Volume: 55
Year: 2023
Month: 08
X-DOI: 10.1080/00036846.2022.2130148
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# input file: RAEC_A_2131720_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Weiguo Xiao
Author-X-Name-First: Weiguo
Author-X-Name-Last: Xiao
Author-Name: Qi Deng
Author-X-Name-First: Qi
Author-X-Name-Last: Deng
Author-Name: Wei Yuan
Author-X-Name-First: Wei
Author-X-Name-Last: Yuan
Author-Name: Naiqian Wu
Author-X-Name-First: Naiqian
Author-X-Name-Last: Wu
Title: Financial frictions, capital misallocation, and total factor productivity: evidence from China
Abstract:
From the perspective of credit constraints and heterogeneous financing costs, this paper aims to enrich our understanding on how financial frictions affect capital misallocation and total factor productivity (TFP). Our model predicts that financial frictions could lead to greater capital misallocation and TFP losses. Moreover, credit constraints exacerbate capital misallocation and amplify TFP losses caused by heterogeneous financing costs. On this basis, we use micro-level data of the Chinese industrial firms to quantify the TFP losses caused by financial frictions. The results show that: (1) financial frictions have caused huge TFP losses in China’s manufacturing industry, and credit constraints have contributed to 120.7% of annual manufacturing TFP losses on average. (2) The manufacturing TFP losses are significantly higher in the post-crisis period than in the pre-crisis period because of the more prevalent and tighter credit constraints. (3) The increase in the post-crisis TFP losses is largely accounted for by the tightening credit constraints faced by firms in central China and non-state-owned enterprises. Our findings highlight the importance of alleviating financial frictions to improve capital allocation efficiency and promote economic growth.
Journal: Applied Economics
Pages: 4853-4870
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131720
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131720
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Handle: RePEc:taf:applec:v:55:y:2023:i:41:p:4853-4870
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# input file: RAEC_A_2131715_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Do Yeong Lee
Author-X-Name-First: Do Yeong
Author-X-Name-Last: Lee
Author-Name: Sung Y. Park
Author-X-Name-First: Sung Y.
Author-X-Name-Last: Park
Title: Global energy intensity convergence using a spatial panel growth model
Abstract:
In this paper, we empirically test the convergence of income and energy intensity for 61 countries using an augmented spatial growth model that includes energy and urbanization variables. We test an income convergence model to understand how energy use affects economic growth, and reveal that developing countries have energy constraints on their economic development. We show that energy is an essential component of economic growth in the early stages of development and that energy intensity converges between countries. It is consistent with the OLS estimation results that the convergence rate of energy intensity in developing countries of the spatial panel data model is still higher than in developed countries. However, the spatial panel data model shows that the gap between the two convergence rates is narrowed when spatial dependence is included. This implies that a country’s steady state is influenced by the neighbouring countries and emphasizes the importance of international cooperation policies for reducing energy intensity. Since the effects of economic variables on the reduction of energy intensity are different in developed and developing countries, a country-specific energy policy rather than an internationally uniform policy is required.
Journal: Applied Economics
Pages: 4745-4764
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131715
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131715
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# input file: RAEC_A_2131716_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinyue Liu
Author-X-Name-First: Xinyue
Author-X-Name-Last: Liu
Author-Name: Li Zhou
Author-X-Name-First: Li
Author-X-Name-Last: Zhou
Author-Name: Lei Lei
Author-X-Name-First: Lei
Author-X-Name-Last: Lei
Title: Contract farming, animal epidemic disease outbreaks, and inclusive growth in rural China
Abstract:
Contract farming (CF) is promoted as part of agricultural development policies in many countries. Few literature on CF has considered the animal epidemic risk, which significantly affects the total revenue and the re-distribution between the contract farmers and the enterprise. Using the ten-year nationwide household-level panel data, we investigate the Chinese poultry sector to analyse the inclusiveness of CF. We evaluate the impact of participating in CF on farmers’ income and asset endowments when animal epidemic diseases occur. The results confirm the insurance and discover the special re-distribution function of CF through adjusting product price. CF negatively affects large farmers’ poultry farming income while it could be mitigated during the animal epidemic disease outbreak. Meanwhile, participating in CF has a significant positive effect on small farmers’ assets when diseases occur. However, CF fails to be ‘inclusive’ in the presence of risks. The above positive effect is limited due to overall fewer participation opportunities available to small farmers. Policy implications and suggestions are derived to improve the inclusiveness of CF to small household farmers.
Journal: Applied Economics
Pages: 4765-4780
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131716
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# input file: RAEC_A_2131718_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wei Xie
Author-X-Name-First: Wei
Author-X-Name-Last: Xie
Author-Name: Yi An
Author-X-Name-First: Yi
Author-X-Name-Last: An
Title: Should dominant contracts move to nearby months?--Evidence from Chinese agricultural futures markets
Abstract:
China’s agricultural futures market has long exhibited a unique phenomenon: the distribution of dominant contracts has always followed the ‘January-May-September’ pattern. Behind this phenomenon is the prominent problem of the deferred and discontinuous distribution of dominant contracts, which regulators hope to solve. Based on Chinese corn and cotton futures, this study uses the method of information leadership shares to investigate the price discovery ability of dominant and nearby contracts. The empirical results show that the deferred and discontinuous distribution of dominant contracts does not hinder the price discovery function. When dominant contracts are rolled over, this does not mean that the price discovery function simultaneously converts. Measures to accelerate the transfer of dominant contracts from deferred to nearby months could not fundamentally eliminate this phenomenon. A reasonable adjustment for liquidity distribution shall be considered the market’s self-regulation.
Journal: Applied Economics
Pages: 4817-4840
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131718
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131718
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# input file: RAEC_A_2131719_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Congping Yang
Author-X-Name-First: Congping
Author-X-Name-Last: Yang
Author-Name: Tong Shu
Author-X-Name-First: Tong
Author-X-Name-Last: Shu
Author-Name: Sheng Liang
Author-X-Name-First: Sheng
Author-X-Name-Last: Liang
Author-Name: Shou Chen
Author-X-Name-First: Shou
Author-X-Name-Last: Chen
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Title: Vehicle routing optimization for rural package collection and delivery integrated with regard to the customer self-pickup radius
Abstract:
This paper explores the optimization for the integrated vehicle routing of package collection and delivery in rural areas, based on the coverage idea and customer self-pickup strategy. The purpose is to optimize package collection and delivery in rural areas with the scattered and small-scale demand for the express service. An integrated vehicle routing model for rural package collection and delivery is established with regard to the radius of customer self-pickup, via taking the sum of operation cost, transportation cost, time penalty cost and carbon emission cost as the optimization goal. A two-stage algorithm based on the improved k-means clustering algorithm and genetic algorithm is designed to solve the model. Ziyuan county of Guangxi province is taken for typical example. The simulation results show that the optimization model can raise vehicle loading rate and service coverage rate, while reducing cost. A rise in the customer’s self-pickup radius and the number of packages collected and delivered can decrease the unit collection and delivery cost, and it is found that carbon emissions have little effects on the optimization of vehicle routing from the perspective of cost.
Journal: Applied Economics
Pages: 4841-4852
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131719
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131719
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# input file: RAEC_A_2131717_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shampa Bhattacharjee
Author-X-Name-First: Shampa
Author-X-Name-Last: Bhattacharjee
Author-Name: Arka Roy Chaudhuri
Author-X-Name-First: Arka
Author-X-Name-Last: Roy Chaudhuri
Title: Religion in the labor market: evidence from India
Abstract:
In this paper, we analyse the education and wage gaps between Hindus and Muslims over the period 1983 to 2011–2012 in India. We find that Muslims are worse off than Hindus in terms of education and this disadvantage has increased over time. Our analysis shows that the wage gap is more pronounced at the higher end of the wage distribution which we interpret as a glass ceiling effect. We find that the wage gap has increased over time and the increase is more pronounced at the upper quantiles. Our decomposition analysis shows that difference in education has a significant contribution to the Hindu-Muslim wage gap. We find that the Hindu-Muslim gaps are more pronounced in urban areas relative to rural areas. Comparing Muslims with different Hindu castes, we find that while the disadvantaged castes have improved their condition relative to Muslims over time, the condition of Muslims relative to the advantaged castes has worsened. Dividing the sample into younger (aged 16–35) and older (36–65) cohorts, we find that the Hindu-Muslim gap in education is more acute in the younger cohort while the Hindu-Muslim wage gap is more pronounced for the older cohort.
Journal: Applied Economics
Pages: 4781-4816
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131717
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131717
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# input file: RAEC_A_2130872_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shaikh M.S.U. Eskander
Author-X-Name-First: Shaikh M.S.U.
Author-X-Name-Last: Eskander
Author-Name: Khandokar Istiak
Author-X-Name-First: Khandokar
Author-X-Name-Last: Istiak
Title: Energy efficiency and CO2 emissions: evidence from the UK universities
Abstract:
Understanding how energy efficiency improvement can mitigate CO2 emissions is critical for global climate change policies to ensure environmental sustainability and a low carbon future. Being the catalyst for training future generations, universities can play a leading role in this vision by adopting energy-saving and emissions reduction strategies. Using HESA data, a centralized system of reporting energy use and corresponding emissions, we adopt a two-step system GMM estimation procedure to estimate the effect of energy efficiency on CO2 emissions for 119 UK universities over the period between 2008–2009 and 2018–2019. Results confirm that higher energy efficiency is conducive to lower emissions. However, the less-than-elastic relationship between energy efficiency and emissions implies that energy efficiency improvement alone cannot enable the UK universities to comply with their net-zero objectives unless they increasingly adopt renewable energy sources. Despite this, universities were able to avoid 2.21 gtCO2e emissions over the sample period due to energy efficiency improvements. Our results are robust to alternative specifications.
Journal: Applied Economics
Pages: 4727-4744
Issue: 41
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2130872
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2130872
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# input file: RAEC_A_2133896_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Diandian Ren
Author-X-Name-First: Diandian
Author-X-Name-Last: Ren
Author-Name: Hongyu Guo
Author-X-Name-First: Hongyu
Author-X-Name-Last: Guo
Author-Name: Tingfeng Jiang
Author-X-Name-First: Tingfeng
Author-X-Name-Last: Jiang
Title: Managed anonymity of CBDC, social welfare and taxation: A new monetarist perspective
Abstract:
China’s central bank digital currency (CBDC), e-CNY, is currently in a large-scale pilot stage. In this study, a new monetarist model, both theoretically and quantitively, is developed to assess the relationship between the managed anonymity feature of e-CNY, social welfare, and taxation. The findings are as follows. First, the introduction of managed anonymous CBDC affects the official and shadow economy by increasing the diversity of payment instruments and suppressing tax evasion, thereby improving social welfare and government tax revenue. Second, if CBDC is ‘cash-like’ in the sense that it offers relatively high anonymity, then issuing CBDC meets the public demand for anonymous small value payment services and enhances the individual welfare of most households. Third, if CBDC is ‘deposit-like’ in the sense that it offers relatively low anonymity, then issuing CBDC combats illegal transactions in the shadow economy, and increases the total amount of social welfare and government tax revenue. The model, calibrated to the Chinese economy, suggests that aggregate welfare and government tax revenue can be increased by up to 3.2% and 10%, respectively. These findings suggest that policy-makers can dynamically adjust the anonymity design of CBDC to better align it with changing policy objectives and economic conditions.
Journal: Applied Economics
Pages: 4990-5011
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133896
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133896
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# input file: RAEC_A_2131722_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tao Li
Author-X-Name-First: Tao
Author-X-Name-Last: Li
Author-Name: Wenxiu (Vince) Nan
Author-X-Name-First: Wenxiu (Vince)
Author-X-Name-Last: Nan
Author-Name: Jahangir Sultan
Author-X-Name-First: Jahangir
Author-X-Name-Last: Sultan
Title: Internal Relevance between Analysts’ Forecasts and Target Prices - Informativeness and Investment Value
Abstract:
Analysts’ decision-making process, through which they use earnings and non-earnings forecasts to provide their target price revisions, remains opaque. Based on the decision tree analysis, we develop a new multivariate information metric, Internal Relevance (IR), to measure the extent to which the revisions of analysts’ consensus earnings and sales forecasts are incorporated into the revisions of consensus target prices. We show that stocks with higher IR have stronger market reactions to target price revisions in terms of abnormal return, abnormal trading volume, and abnormal return volatility. These results remain consistent across a series of robustness checks. Finally, we perform portfolio analysis to show that IR can be used to screen stocks to improve trading profitability.
Journal: Applied Economics
Pages: 4890-4910
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131722
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131722
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# input file: RAEC_A_2133895_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuanyuan Zhang
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Zhang
Author-Name: Stephen Chan
Author-X-Name-First: Stephen
Author-X-Name-Last: Chan
Author-Name: Jeffrey Chu
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Chu
Author-Name: Shou–hsing Shih
Author-X-Name-First: Shou–hsing
Author-X-Name-Last: Shih
Title: The adaptive market hypothesis of Decentralized finance (DeFi)
Abstract:
Decentralized finance, or ‘De-Fi’, is an emerging sector and movement in finance and the cryptocurrency space that aims to extend the idea of digital currencies to a global decentralized financial system. In many cases, customized ‘coins’ or ‘tokens’ are used for applications such as borrowing or lending, providing liquidity, and even voting. Built on the same foundations of traditional cryptocurrencies (e.g. Bitcoin), these tokens possess monetary value and can be traded using fiat currencies on specialized decentralized exchanges. We provide the first analysis investigating the market efficiency of the decentralized finance market through DeFi tokens. Our findings from applying the adaptive market hypothesis (AMH) revealed that the efficiency of the markets varies over time, with the majority of the DeFi token returns exhibit very short days of inefficiency and predictability in their price every year. This is consistent with the AMH, but perhaps unexpected when considering the link between emerging financial markets and market efficiency. We conclude that the majority of investors and practitioners purchase these DeFi tokens for their utility value rather than for investment purposes, hence making the DeFi market more efficient. Further robustness checks on other comparable products in the blockchain ecosystem such as NFTs also reveal similar results.
Journal: Applied Economics
Pages: 4975-4989
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133895
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133895
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# input file: RAEC_A_2131721_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiong Wang
Author-X-Name-First: Xiong
Author-X-Name-Last: Wang
Author-Name: Yazhi Zhu
Author-X-Name-First: Yazhi
Author-X-Name-Last: Zhu
Author-Name: Xiaohang Ren
Author-X-Name-First: Xiaohang
Author-X-Name-Last: Ren
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: The impact of digital inclusive finance on the spatial convergence of the green total factor productivity in the Chinese cities
Abstract:
This paper measures the Green Total Factor Productivity (GTFP) of 279 cities in China from 2011 to 2018 based on the Global Malmquist-Luenberger (GML) index and Slacks-based Measure Directional Distance Function (SBM-DDF) method. Through different spatial econometric models, we empirically analyse the spatial convergence of the GTFP and the spatial effect of Digital Inclusive Finance (DIF) on the GTFP convergence. The results show no spatial σ convergence in the GTFP in the Total, Central, Eastern, and Western regions of China, while the gap in green development is the largest in western cities and most balanced among central cities. In China’s three regions, absolute spatial β convergence, conditional spatial β convergence, and spatial club convergence exist. The DIF can promote the spatial convergence of the GTFP, and the promotion effect is more significant in the Western than in the Eastern and Central regions. The findings are important for narrowing the regional GTFP gap and promoting regional economic synergistic development.
Journal: Applied Economics
Pages: 4871-4889
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131721
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# input file: RAEC_A_2133894_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alejandro Fernández-Cerezo
Author-X-Name-First: Alejandro
Author-X-Name-Last: Fernández-Cerezo
Author-Name: Beatriz Gonzalez
Author-X-Name-First: Beatriz
Author-X-Name-Last: Gonzalez
Author-Name: Mario Izquierdo Peinado
Author-X-Name-First: Mario
Author-X-Name-Last: Izquierdo Peinado
Author-Name: Enrique Moral-Benito
Author-X-Name-First: Enrique
Author-X-Name-Last: Moral-Benito
Title: Firm-level heterogeneity in the impact of the COVID-19 pandemic
Abstract:
This paper explores the heterogeneity across firms in the impact of and response to the COVID-19 shock. It relies on a survey conducted by Banco de España to 4,004 companies in November 2020 matched to very rich balance-sheet information on firm characteristics. According to our results, COVID-19 had a higher impact on the most vulnerable firms (small, young and less productive), and they also found more useful government policy support. Nonetheless, there were some exceptions: public loan guarantees had more difficulties reaching firms with less pre-existing debt; and furlough schemes were not able to fully protect jobs in firms with a higher share of temporary workers, which find firing more useful. While uncertainty is the key factor hindering firms’ activity, we use the announcement of the Pfizer vaccine on November 9th 2020 as a natural experiment to provide evidence that the vaccine announcement improved significantly firms’ subjective recovery expectations. This points at the importance of the communication of medical advances to guide firms’ expectations in pandemic episodes.
Journal: Applied Economics
Pages: 4946-4974
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133894
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133894
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# input file: RAEC_A_2133893_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peter Lindner
Author-X-Name-First: Peter
Author-X-Name-Last: Lindner
Author-Name: Thomas Y. Mathä
Author-X-Name-First: Thomas Y.
Author-X-Name-Last: Mathä
Author-Name: Giuseppe Pulina
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Pulina
Author-Name: Michael Ziegelmeyer
Author-X-Name-First: Michael
Author-X-Name-Last: Ziegelmeyer
Title: Borrowing constraints, own labour and homeownership
Abstract:
We show that a substantial share of households contributes their own labour to the acquisition of their main residence. These contributions help households faced with credit constraints, since they reduce the need for external financing. We develop a simple theoretical model and show that own labour contributions decrease with the level of financial resources available, while they increase with the mortgage interest rate. These theoretical results are supported by empirical analysis, which also shows that own labour contributions vary by household characteristics (age, gender, profession) and by type of dwelling (house, apartment).
Journal: Applied Economics
Pages: 4931-4945
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133893
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133893
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# input file: RAEC_A_2131723_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chao Yan
Author-X-Name-First: Chao
Author-X-Name-Last: Yan
Author-Name: Jiaxin Wang
Author-X-Name-First: Jiaxin
Author-X-Name-Last: Wang
Author-Name: Yi Feng
Author-X-Name-First: Yi
Author-X-Name-Last: Feng
Title: Can innovation help existing firms resist shock from new stock issuance? Evidence from the launch of China’s STAR market
Abstract:
The launch of China’s STAR market (officially known as the Science and Technology Innovation Board of Shanghai Stock Exchange) caused a significant drop in stock prices in existing stock markets in the Shanghai and Shenzhen stock exchanges. This study examines whether innovative firms showed more resilience to the shock caused by the launch of the STAR market. Using a sample of Chinese A-share listed firms, we find that firms with higher innovation had significantly higher stock returns during the shock period. This suggests that the STAR market launch induced investors to pay more attention to firm innovation and prompted them to reward innovations to a greater extent. This finding remains intact after an array of robustness tests. Moreover, this effect was more pronounced in non-state-owned enterprises and firms with higher product market competition. Additional analyses suggest that investors prefer firms with higher quality of innovation. Overall, this study finds that innovation plays an important role in capital markets; that is, innovation helps firms resist shock from the issuance of new shares.
Journal: Applied Economics
Pages: 4911-4930
Issue: 42
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2131723
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2131723
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# input file: RAEC_A_2136616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhuo Huang
Author-X-Name-First: Zhuo
Author-X-Name-Last: Huang
Author-Name: Yunqing Tao
Author-X-Name-First: Yunqing
Author-X-Name-Last: Tao
Author-Name: Xin Luo
Author-X-Name-First: Xin
Author-X-Name-Last: Luo
Author-Name: Yongwei Ye
Author-X-Name-First: Yongwei
Author-X-Name-Last: Ye
Author-Name: Tianyi Lei
Author-X-Name-First: Tianyi
Author-X-Name-Last: Lei
Title: Regional digital finance and corporate investment efficiency in China
Abstract:
Digital finance has a substantial effect on macroeconomics and plays an important role in corporate investment behaviour. However, few studies examine how digital finance affects corporate investment efficiency. We use the data of Chinese A-share listed companies for 2011–2017 and the provincial digital finance index developed by Peking University to document that digital finance significantly improves corporate investment efficiency. Our findings are supported by extensive robustness tests. In addition, we identify two mechanisms by which digital finance may affect corporate investment efficiency: by reducing financing constraints and stimulating corporate innovation. We find that digital finance has a more pronounced effect on non-state-owned enterprises, small firms, firms in the central and western regions of China, firms with fewer loans, and firms with a higher dependence on external financing, indicating that digital finance increases the inclusiveness of financial markets. Finally, our economic consequences test shows that digital finance increases the total factor productivity of firms. Overall, this study provides insights for developing countries. In particular, it suggests that digital finance can increase firms’ resource allocation efficiency.
Journal: Applied Economics
Pages: 5115-5134
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136616
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136616
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# input file: RAEC_A_2135679_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: P. Wesley Routon
Author-X-Name-First: P. Wesley
Author-X-Name-Last: Routon
Author-Name: Jay K. Walker
Author-X-Name-First: Jay K.
Author-X-Name-Last: Walker
Title: (More) Party time in school? Relative age and alcohol consumption
Abstract:
School starting age policies result in academic cohorts where the oldest students are approximately a full year older than their youngest peers. A student’s relative age in their cohort has been shown related to many important outcomes. As examples, relatively older students have been found to be more focused and successful academically, more consistent in their related goals, have more friends, and are less likely to commit crime. Here, we examine the relationships between relative age and alcohol consumption (and partying behaviours) during high school and college. The sample used consists of more than 87,000 U.S. students who attended over 600 different colleges and universities, and even more high schools. These outcomes are found to be only mildly related to relative age, with evidence pointing towards older students drinking and partying slightly less during both high school and college. Though they had upwards of an extra year of being older than the legal drinking age during college, relatively older students drank slightly less, on average. Thus, among college students, the maturity effect of relative age appears stronger than the legal deterrence effect of minimum legal drinking age laws. (I23, I29, I12)
Journal: Applied Economics
Pages: 5048-5064
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2135679
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2135679
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# input file: RAEC_A_2136359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jia Wang
Author-X-Name-First: Jia
Author-X-Name-Last: Wang
Author-Name: Weici Yuan
Author-X-Name-First: Weici
Author-X-Name-Last: Yuan
Author-Name: Cynthia L. Rogers
Author-X-Name-First: Cynthia L.
Author-X-Name-Last: Rogers
Title: Economic development program spending in the US: is there club convergence?
Abstract:
This paper provides a novel investigation of whether budgetary spending on economic development programs converges across US states. States use a wide array of tax and subsidy programs to try to attract firms in a highly competitive environment. If states engage in strategic tax and incentive competition as previous literature suggests, we should expect economic development spending to converge over time. Using a national database of state ‘out of pocket’ economic development expenditures, we apply the panel convergence method developed by Phillips and Sul (2007, 2009) which endogenously identifies the number and members of convergence clubs. We find that states flock together in three spending clubs which reflect socioeconomic characteristics. The existence of multiple clubs with heterogeneous spending patterns reveals the complexity of state-level budgetary efforts put towards economic development programs.
Journal: Applied Economics
Pages: 5097-5114
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136359
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136359
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# input file: RAEC_A_2133897_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuanyuan Ma
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Ma
Author-Name: Chenglong Liu
Author-X-Name-First: Chenglong
Author-X-Name-Last: Liu
Author-Name: Jie Tian Zhang
Author-X-Name-First: Jie Tian
Author-X-Name-Last: Zhang
Author-Name: Yanze Liu
Author-X-Name-First: Yanze
Author-X-Name-Last: Liu
Title: Reliability study of stock index forecasting in volatile and trending cities using public sentiment ——based on word2Vec and LSTM models
Abstract:
Accurate forecasting of the stock market has always been a key concern of academics and investors, and few researchers have discussed the reliability of stock index forecasting in volatile and trending markets based on public sentiment. This article will first use Word2Vec and CNN to classify the sentiment of 754,000 text data excavated from the Oriental Fortune Stock Forum and construct public sentiment indicators; then, select characteristic parameters such as the closing value of the Shanghai Composite Index, the inflow of northbound funds, and the exchange rate of RMB against the US dollar. Introducing sentiment indicators and building an LSTM model to explore the effect of public sentiment factors on the prediction of the Shanghai Composite Index in the unilateral rise, unilateral fall, and volatile markets. The research shows that the reliability of using public sentiment to predict unilateral falling and volatile markets is high, especially the prediction error of predicting volatile markets is the smallest. In addition, it is also found that due to the existence of the ‘disposition effect’, the error is significantly larger when using public sentiment factors to predict the unilateral rising market.
Journal: Applied Economics
Pages: 5013-5032
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133897
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133897
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# input file: RAEC_A_2136357_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Melvin Jameson
Author-X-Name-First: Melvin
Author-X-Name-Last: Jameson
Author-Name: Constant I. Tra
Author-X-Name-First: Constant I.
Author-X-Name-Last: Tra
Author-Name: Jeffrey R. Wheble
Author-X-Name-First: Jeffrey R.
Author-X-Name-Last: Wheble
Title: Out of the shadows: the behaviour of the market for cannabis during its transition to legal status
Abstract:
This study considers the functioning of the market for recreational marijuana during its transition to legal status in Colorado and Washington State. Contrary to the expectation that moving from covert to legal status generates a freer flow of information that improves market functioning, we find that the measures we consider, price dispersion and the incidence of low-quality deliveries (‘rip-offs’), both show statistically and economically significant increases, reflecting worsening market functioning. We attribute this adverse outcome to the partial nature of the initial decriminalization, which maintained sanctions against selling, even while legalizing purchase and possession of small quantities. Our results also confirm that purchases increased with decriminalization. An influx of unsophisticated new buyers would create a less-informed average customer; a less-informed customer pool is consistent with poorer market outcomes, especially when dealers must continue to keep transactions secret. This work contributes to the empirical price dispersion literature, providing results consistent with the hypothesis that price dispersion increases when participants are less informed, but inconsistent with the prediction that price dispersion decreases with lower cost of price information. It also provides further evidence consistent with the importance of ‘rip-off’ transactions that has been highlighted in the literature on covert markets.
Journal: Applied Economics
Pages: 5065-5080
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136357
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136357
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# input file: RAEC_A_2133898_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Oluwaseyi Ebenezer Olalere
Author-X-Name-First: Oluwaseyi Ebenezer
Author-X-Name-Last: Olalere
Author-Name: Janine Mukuddem-Petersen
Author-X-Name-First: Janine
Author-X-Name-Last: Mukuddem-Petersen
Title: The effect of firm-level uncertainty on R&D investment and corporate risk-taking of firms in BRICS countries: a simultaneous approach
Abstract:
This study examines the effect of firm-level uncertainty on R&D investment and corporate risk-taking. The current study uses unbalanced panel data of nonfinancial listed firms in BRICS countries (i.e. Brazil, Russia, India, China, and South Africa) for the period 2009–2020, totalling 24,564 observations. We applied a robust two-step generalized method of moments (GMM) to estimate the model and control for endogeneity issues. The findings show that firm-level uncertainty significantly influences R&D investment and corporate risk-taking in BRICS countries. The panel vector autoregression (PVAR) provides more robust results and confirms the significant impact of firm-level uncertainty on R&D investment and corporate risk-taking. The result indicates that firm-level uncertainty has a significant negative effect on R&D investment but a significant positive impact on corporate risk-taking. This study offers important implications for managers, policymakers, and investors in emerging markets where the relationship has remained ambiguous and applies both theories to analytically investigate the impact of uncertainty on R&D investment and corporate risk-taking of firms in BRICS countries.
Journal: Applied Economics
Pages: 5033-5047
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2133898
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2133898
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# input file: RAEC_A_2136358_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sihong Chen
Author-X-Name-First: Sihong
Author-X-Name-Last: Chen
Author-Name: Yu Yvette Zhang
Author-X-Name-First: Yu Yvette
Author-X-Name-Last: Zhang
Author-Name: Shaosheng Jin
Author-X-Name-First: Shaosheng
Author-X-Name-Last: Jin
Title: Spousal dependence and intergenerational transmission of body mass index
Abstract:
Obesity and overweight have become increasingly prevalent in developing countries like China. This paper explores the evolvement of body mass index (BMI) of the Chinese population using a nationally representative sample. Focusing on familial transmission of BMI, we model married couple’s BMI jointly and explore how parents’ BMI affect children’s BMI. In particular, we use spousal and parental characteristics as proxy variables to account for potential omitted variables bias and explicitly model common couple effect with the correlated random-effects model for couple’ BMI. Our analysis suggests strong and positive spousal dependence and intergenerational transmissions of BMI in Chinese families. The influences of spousal BMI, parental BMI and a variety of social economic characteristics are found to depend on gender, region of residence (urban versus rural) and evolve over time. We find positive effects of spousal BMI that are significant, asymmetric (greater for wife than for husband), and generally vary across regions. For grown children, we find parental BMI to be the most important predictors for children’s BMI. Since families can play an essential role in preventing obesity, our results can be useful for developing health intervention programs and promoting healthy lifestyle.
Journal: Applied Economics
Pages: 5081-5096
Issue: 43
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136358
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2136358
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# input file: RAEC_A_2137294_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mita Bhattacharya
Author-X-Name-First: Mita
Author-X-Name-Last: Bhattacharya
Author-Name: John N Inekwe
Author-X-Name-First: John N
Author-X-Name-Last: Inekwe
Author-Name: Brantley Liddle
Author-X-Name-First: Brantley
Author-X-Name-Last: Liddle
Title: The role of renewable energy sources in residential electricity prices: A club convergence analysis across selected European countries
Abstract:
This research analyses the convergence of residential electricity prices in 22 European countries between 1995 and 2019. The findings reveal the existence of two sub-convergent clubs of residential electricity prices. Half of the countries studied belong to the club with higher residential electricity prices, while the other half belong to the lower-price club. Household income increases the probability of belonging to the club of lower residential electricity prices. An increase in heating degree days decreases the probability of belonging to the club of lower residential electricity prices. A similar effect is observed for the price of non-renewable energy sources used in electricity production. Further, although a country’s likelihood of belonging to the club of lower residential electricity prices diminishes with a rise in the share of renewable electricity production, the converse pattern is obtained at the residential level, such that residential renewable electricity share has a beneficial effect. Our findings suggest that households have benefitted in paying lower prices for renewable sourced electricity. Therefore, this research indicates that ongoing clean energy initiatives and the availability of affordable substitutes for conventionally generated electricity are being realized to a certain extent, improving electricity markets for the countries we analysed.
Journal: Applied Economics
Pages: 5157-5171
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2137294
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2137294
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# input file: RAEC_A_2138817_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tetsuya Kamamura
Author-X-Name-First: Tetsuya
Author-X-Name-Last: Kamamura
Author-Name: Yuhsuke Koyama
Author-X-Name-First: Yuhsuke
Author-X-Name-Last: Koyama
Author-Name: Tomoharu Mori
Author-X-Name-First: Tomoharu
Author-X-Name-Last: Mori
Author-Name: Taizo Motonishi
Author-X-Name-First: Taizo
Author-X-Name-Last: Motonishi
Author-Name: Kazuhito Ogawa
Author-X-Name-First: Kazuhito
Author-X-Name-Last: Ogawa
Title: Loot box gambling and economic preferences: a survey analysis of Japanese adolescents and young adults
Abstract:
With the increasing use of social-network games, game addiction has become a serious challenge to the world. This study investigates the effects of risk preference, loss aversion, and time preference on the behaviour of Japanese adolescents and young adults purchasing ‘Gacha’, or loot box gambling, in social-network games. We surveyed 1,210 respondents, aged 12 to 23 years; approximately 34% of the respondents had purchased ‘Gacha’. We found that loss-averse and risk-averse female respondents had less experience paying for ‘Gacha’, with their highest billing amount charged per month being lower than that of other female respondents. Furthermore, future-oriented female respondents had less payment experience than present-oriented ones, with the highest billing amount charged per month for the former respondents being also lower. The highest billing amount charged per month of loss-averse male respondents was significantly lower than that of other male respondents.
Journal: Applied Economics
Pages: 5213-5229
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138817
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138817
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# input file: RAEC_A_2137457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Norman Sedgley
Author-X-Name-First: Norman
Author-X-Name-Last: Sedgley
Title: Trade, competition and innovation
Abstract:
The impact of international trade on technological change and productivity is an important and well-researched topic. The existing literature focuses on spillovers of knowledge, market size effects, Schumpeterian effects, and escape competition effects. Separately, economists working in the areas of Economic Growth and Industrial Organization have looked for a relationship, often nonlinear, between market structure and innovation. This paper investigates the indirect role of trade on innovation through a contribution to domestic competition. Using a unit of analysis of HJT technology subclass, I construct a panel data set that spans the period from 2002 through 2012. Trade adjusted and unadjusted concentration ratios are constructed for HJT technology subclasses and used to deconstruct the contribution of trade to innovation through this indirect channel. This novel approach to the data also uncovers strong evidence of a nonlinear relationship between innovation and market concentration.
Journal: Applied Economics
Pages: 5189-5201
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2137457
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2137457
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# input file: RAEC_A_2136617_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yong Wang
Author-X-Name-First: Yong
Author-X-Name-Last: Wang
Author-Name: Shilin Zheng
Author-X-Name-First: Shilin
Author-X-Name-Last: Zheng
Author-Name: Weijie Luo
Author-X-Name-First: Weijie
Author-X-Name-Last: Luo
Title: Does specialization improve firm efficiency? Evidence from the vertical unbundling reform in the Chinese electricity industry
Abstract:
Many electricity markets in the world have experienced the vertical unbundling where the generation and transmission sectors were separated from a vertically-integrated monopolistic power company. This restructuring could positively impact the productivity of the firms because of intensified competition and enhanced autonomy but could also negatively aect the productivity because of the loss of synergy and scaled economy. By exploiting the vertical unbundling that took place in China in 2003, this study finds that vertical unbundling increased the labour use of the generation firms and the material use of the transmission firms. Additional investigation reveals that generation firms suffer from an efficiency loss in labour use due to the loss of coordination after vertical unbundling and the transmission firms face an increased transaction cost in acquiring material and bear the additional cost transferred from the efficiency loss of the upstream generation firms. Our findings suggest that benefits of vertical unbundling relative to integration critically hinge on the market structure of the industry.
Journal: Applied Economics
Pages: 5135-5156
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2136617
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# input file: RAEC_A_2137456_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Daniel J. Parisian
Author-X-Name-First: Daniel J.
Author-X-Name-Last: Parisian
Author-Name: Xintong Wang
Author-X-Name-First: Xintong
Author-X-Name-Last: Wang
Title: Learning and not using? The effect of degree attainment on illicit drug use among at-risk youth
Abstract:
This paper examines the causal effect of earning a GED or vocational degree on future illicit drug use, employing random assignment into the United States’ most comprehensive education and vocational training program for at-risk youth – Job Corps – as a source of exogenous variability in degree attainment. Nonparametric bounds under relatively weak monotonicity assumptions are constructed to allow the random assignment to violate the exclusion restriction when used as an instrument. We also use a fixed effect model and propensity score weighting to supplement the results. The results from different methods suggest that degree attainment may have the most significant effect in reducing the illicit drug use of blacks, while the results for whites and Hispanics are less conclusive.
Journal: Applied Economics
Pages: 5172-5188
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2137456
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2137456
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# input file: RAEC_A_2211335_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongsheng Fang
Author-X-Name-First: Hongsheng
Author-X-Name-Last: Fang
Author-Name: Dandan Dang
Author-X-Name-First: Dandan
Author-X-Name-Last: Dang
Author-Name: Nan Fu
Author-X-Name-First: Nan
Author-X-Name-Last: Fu
Author-Name: Wen-Quan Hu
Author-X-Name-First: Wen-Quan
Author-X-Name-Last: Hu
Title: Enterprise income tax and corporate innovation: evidence from China
Abstract:
Using China’s 2008 enterprise income tax (EIT) reform, this study examines the effect of EIT on corporate innovation comprehensively. Based on accurate identification of the direction of changes in the corporate tax rate, we introduce two dummy variables of tax rate decline and escalation to investigate the impact of EIT changes simultaneously. Using the firm-level dataset from China’s A-share listed companies, we find that the innovation level of tax-rate-declining enterprises will increase by 0.2%, whereas the innovation level of tax-rate-increasing enterprises will decrease by 0.4%. The dynamic effect demonstrates that the aforementioned promoting and inhibitory effects are continuous. Heterogeneity analyses reveal that the changes in the EIT rates have a greater impact on the innovation level of enterprises with high innovation demand, manufacturing enterprises, enterprises in a high rule of law environment, and enterprises in the eastern region. Our study highlights the importance of the EIT reform on corporate innovation and guides how to better optimize the effectiveness of such policies.
Journal: Applied Economics
Pages: 5230-5249
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2023.2211335
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211335
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# input file: RAEC_A_2138816_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yoichiro Fujii
Author-X-Name-First: Yoichiro
Author-X-Name-Last: Fujii
Author-Name: Yusuke Osaki
Author-X-Name-First: Yusuke
Author-X-Name-Last: Osaki
Title: Effect of regret sensitivity on self-insurance and self-protection
Abstract:
We examine how regret sensitivity influences two types of effort to prevent losses: self-insurance and self-protection. Individuals are called regret sensitive when they suffer disutility from the anticipated regret of considering their ex post best wealth. The keys to determining the effect of regret are the probability of loss in self-insurance and the sensitivity to regret in self-protection. Comparing the case of expected utility, regret-sensitive individuals tend to increase (decrease) their exertion of self-insurance when the probability of loss is low (high). Regret-sensitive individuals tend to decrease (increase) self-protection when they care about regret sufficiently (insufficiently). This result illustrates observed loss prevention practices.
Journal: Applied Economics
Pages: 5202-5212
Issue: 44
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138816
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138816
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# input file: RAEC_A_2138821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dan Wu
Author-X-Name-First: Dan
Author-X-Name-Last: Wu
Author-Name: Panpan Zheng
Author-X-Name-First: Panpan
Author-X-Name-Last: Zheng
Title: The impact of tax integrity on corporate innovation: evidence from China
Abstract:
This study analyzes the impact of enterprise integrity on corporate innovation from the perspective of the contract theory. We used the tax credit ratings of listed firms provided by China’s State Administration of Taxation from 2014 to 2017 to measure enterprise integrity. Our results suggest that enterprises with tax integrity have a higher intensity of research and development (R&D) investment than those without. In addition, institutional investors and financing constraints play an incomplete intermediary role between tax integrity and corporate innovation. The impact of tax integrity on corporate innovation is heterogenous; tax integrity has a more significant impact on state-owned enterprises, non-high-tech enterprises, and enterprises in areas with lower marketization levels. This study does not only complement the theoretical research on integrity and corporate innovation; it also provides empirical evidence for stakeholders to understand the economic consequences of integrity from the perspective of the contract theory.
Journal: Applied Economics
Pages: 5303-5316
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138821
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138821
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# input file: RAEC_A_2139804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yan Chen
Author-X-Name-First: Yan
Author-X-Name-Last: Chen
Author-Name: Xi Wang
Author-X-Name-First: Xi
Author-X-Name-Last: Wang
Title: Social trust and income of rural residents: Evidence from China
Abstract:
We examine the relationship between social trust and residential income in rural China by using two microeconomic survey datasets. Social indicators of trust are measured from three dimensions: personalized trust, or trust in relatives and friends; generalized trust, or trust in people other than relatives and friends and public trust, or trust in the state and public officials. Our results show that personalized trust can increase rural residents’ income, while generalized trust may reduce their income. In addition, a significant positive relation is found between public trust and income only in the West and East of China. Three underlying economic mechanisms are also identified: health effects, organizational learning effects, and insurance effects. Furthermore, we empirically assess the impact of the different types of social trust on sources of residential income. The results indicate that personalized trust enhances residents’ financial assets income, generalized trust raises business income, and public trust contributes to salary income.
Journal: Applied Economics
Pages: 5352-5368
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2139804
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139804
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# input file: RAEC_A_2138818_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yi-Chieh Wen
Author-X-Name-First: Yi-Chieh
Author-X-Name-Last: Wen
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Xiaoyue Chen
Author-X-Name-First: Xiaoyue
Author-X-Name-Last: Chen
Author-Name: Tarlok Singh
Author-X-Name-First: Tarlok
Author-X-Name-Last: Singh
Title: Spillover effects of the US stock market and the predictability of returns: international evidence based on daily data
Abstract:
This paper investigates the spillover effect of lagged US daily returns on stock return predictability across 17 developed markets from January 1st, 1972 through August 31st, 2022. Using daily returns series, we find that lagged US returns is a superior predictor for future returns in international markets while including the lagged domestic returns and considering US negative or extreme returns. The predictive power of lagged US daily returns, nonetheless, substantially weakens during the recent COVID period. Our results imply that the degrees of stock return predictability and spillovers across markets are driven by the evolutionary market conditions, the channels of information transmission, and information leadership.
Journal: Applied Economics
Pages: 5251-5266
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138818
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138818
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# input file: RAEC_A_2138819_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yao Hou
Author-X-Name-First: Yao
Author-X-Name-Last: Hou
Author-Name: Rong Li
Author-X-Name-First: Rong
Author-X-Name-Last: Li
Author-Name: Danxia Xie
Author-X-Name-First: Danxia
Author-X-Name-Last: Xie
Author-Name: Longtian Zhang
Author-X-Name-First: Longtian
Author-X-Name-Last: Zhang
Author-Name: Qingquan Zhang
Author-X-Name-First: Qingquan
Author-X-Name-Last: Zhang
Title: The evolution of monetary rules with financial stability considerations
Abstract:
In this study, we estimate and investigate the evolution of monetary rules in China and the United States in the 21st century. Our goal is to examine whether financial stability has been taken into consideration in the decision-making of monetary policy. By proposing a new method, we estimate the structural breaks, split the entire time period into multiple monetary regimes, and estimate an extended Taylor rule with financial stability considerations and its evolution over time. Our findings show that China’s monetary policy emphasized the financial stress of the U.S. immediately before and during the 2008 global financial crisis. However, the coefficient for the U.S. financial stress has decreased since then, which shows a weaker concern on this index, and instead, the Chinese policymakers are emphasizing stronger on their domestic financial market.
Journal: Applied Economics
Pages: 5267-5286
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138819
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138819
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# input file: RAEC_A_2138822_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jinrong Yu
Author-X-Name-First: Jinrong
Author-X-Name-Last: Yu
Author-Name: Yun Wei
Author-X-Name-First: Yun
Author-X-Name-Last: Wei
Author-Name: Zhiqiang Zhou
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Zhou
Title: The impact of human capital agglomeration on the green upgrading of the manufacturing industry in the Yangtze River Economic Belt
Abstract:
Based on the panel data of provinces and cities from 2002 to 2019, this study took the human capital agglomeration as the threshold variable and analysed the threshold effect of human capital agglomeration on the green upgrading of the manufacturing industry in the Yangtze River Economic Belt. Based on the dynamic panel threshold model, human capital agglomeration was found to have a significant threshold effect on green upgrading of the manufacturing industry in the Yangtze River Economic Belt. When human capital agglomeration crosses a certain threshold, the impact effect of manufacturing green upgrading decreases.
Journal: Applied Economics
Pages: 5317-5329
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138822
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138822
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# input file: RAEC_A_2139802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Philipp Lieberknecht
Author-X-Name-First: Philipp
Author-X-Name-Last: Lieberknecht
Author-Name: Philip Vermeulen
Author-X-Name-First: Philip
Author-X-Name-Last: Vermeulen
Title: Saving at the top and the long-run relationship between wealth and income inequality
Abstract:
This paper analyzes the joint long-run evolution of wealth and income inequality. We find that top wealth and income shares were cointegrated over the past century in France and the US. We rationalize this finding in two macroeconomic heterogeneous agent models featuring growth and incomplete markets, respectively. In both frameworks, the co-movement of top wealth and income shares is determined by the relative saving rate at the top, i.e. the ratio of the saving rate of rich individuals to the aggregate saving rate. Our empirical results suggest that relative saving rates at the top have been fairly stable over time, thus explaining the observed tight co-movement between top wealth and income shares over the past century.
Journal: Applied Economics
Pages: 5330-5351
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2139802
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139802
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# input file: RAEC_A_2138820_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xuyi Liu
Author-X-Name-First: Xuyi
Author-X-Name-Last: Liu
Author-Name: Jiawen Liu
Author-X-Name-First: Jiawen
Author-X-Name-Last: Liu
Author-Name: Shun Zhang
Author-X-Name-First: Shun
Author-X-Name-Last: Zhang
Title: A regional analysis of the urbanization-energy-economy-emissions nexus in China: based on the environmental Kuznets curve hypothesis
Abstract:
The process of urbanization has accelerated in the recent decades, bringing with it an enormous impact on climate change. This paper examines the relationships between urbanization, energy consumption, and economic growth on carbon dioxide emissions in regions of China during the 1997–2019 period. Additionally, the environmental Kuznets curve (EKC) hypothesis is also examined. The cross-sectional dependence test indicates that no cross-sectional dependence is present in the panel data, and six unit root tests show that all variables are integrated on the order of one, I(1). Results of all cointegration tests provide evidence for a long-term equilibrium in the selected time series data. The fully modified ordinary least squares (FMOLS) and the augmented mean group (AMG) estimator indicate that the EKC hypothesis is valid in all regions except Western China. Given its abundant renewable resources, this region can vigorously develop renewable energy and energy storage technology. Moreover, energy consumption can lead to emissions increasing, while it is not certain that urbanization leads to emissions decreasing. Clean technologies for energy and intensive development of urban area should be emphasized. Finally, the results of pairwise Dumitrescu-Hurlin (DH) Panel causality test between each pair of variables are complicated and mixed in different regions.
Journal: Applied Economics
Pages: 5287-5302
Issue: 45
Volume: 55
Year: 2023
Month: 09
X-DOI: 10.1080/00036846.2022.2138820
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2138820
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# input file: RAEC_A_2139808_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: Michael A. Nelson
Author-X-Name-First: Michael A.
Author-X-Name-Last: Nelson
Title: Global coronavirus business closures: influences of executive gender, firm characteristics, and government involvement
Abstract:
This paper uses firm-level data across about 30 nations to study the effect of the coronavirus on firms’ closures, with attention to firms with female managers and female owners. We also consider the influences of firms’ characteristics, the role of the government, economy-wide attributes, and industry type. The estimation uses a logit strategy, with country-year level clustered standard errors reported and industry fixed-effects included. Results show that, with somewhat limited statistical support, firms with female managers were more likely to exit, while those with female owners were less likely to. Further, fertility and gender inequality made firms’ exit more likely. Larger and older firms were less likely to exit. Finally, firms located in urbanized nations and those located in nations with larger governments were more likely to close, while the reverse was true in nations with better governance. We find weak support for the notion that heightened and aggressive government efforts to control the pandemic contributed to business closures. Finally, we find that various firm-level and macro factors impact firms’ exit during the COVID-19 pandemic.
Journal: Applied Economics
Pages: 5384-5402
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139808
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139808
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# input file: RAEC_A_2139809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kristiina Ala-Kokko
Author-X-Name-First: Kristiina
Author-X-Name-Last: Ala-Kokko
Author-Name: Lawton Lanier Nalley
Author-X-Name-First: Lawton Lanier
Author-X-Name-Last: Nalley
Author-Name: Alvaro Durand-Morat
Author-X-Name-First: Alvaro
Author-X-Name-Last: Durand-Morat
Author-Name: Wei Yang
Author-X-Name-First: Wei
Author-X-Name-Last: Yang
Title: Impact of disjunctive marking on consumer preferences
Abstract:
Disjunctive marking (‘or’ or ‘and/or’) has been ruled illegal under the U.S. Customs and Border Protection’s country-of-origin labelling regulations. Using an ongoing dispute in Puerto Rico as a medium, data was collected through a choice experiment and a random parameter logit model was employed to estimate the impact of disjunctive marking on consumers’ willingness-to-pay and market shares. We find that disjunctive marking provides Rico branded rice a $0.28 premium per three-pound bag of medium-grain rice. Additionally, 23% of the Puerto Rican rice market is being reallocated to Rico through the use of disjunctive marking. This study is the first attempt at estimating the economic impacts of disjunctive marking and provides insights on an innovative mislabelling technique that impacts consumer preferences.
Journal: Applied Economics
Pages: 5403-5418
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139809
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139809
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# input file: RAEC_A_2139811_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Moonsoo Kang
Author-X-Name-First: Moonsoo
Author-X-Name-Last: Kang
Title: ETFs and information asymmetry of underlying securities: evidence on the volume-conditioned return autocorrelation
Abstract:
This study investigates whether exchange-traded funds (ETFs) increase the information asymmetry of underlying securities by examining the relationship between the US equity ETF ownership or turnover and the volume-conditioned daily return autocorrelation proposed by. Specifically, we find that stocks with higher ETF ownership exhibit weaker return reversals. We confirm that the ETF ownership effect is robust in a variety of settings, such as various volume measures, within industry, and various regression frameworks. We also address the difference between the volume-conditioned autocorrelation and the unconditional autocorrelation. Moreover, we document that higher ETF turnover leads to weaker return reversals, independently of the ETF ownership effect. These findings suggest that higher ETF presence allows more informed traders to engage in trades or more liquidity traders to migrate to ETFs from underlying securities, resulting in higher information asymmetry for underlying securities.
Journal: Applied Economics
Pages: 5434-5450
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139811
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# input file: RAEC_A_2139813_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luis Diaz-Serrano
Author-X-Name-First: Luis
Author-X-Name-Last: Diaz-Serrano
Author-Name: Mercedes Teruel-Carrizosa
Author-X-Name-First: Mercedes
Author-X-Name-Last: Teruel-Carrizosa
Title: Job-to-job transitions and the job satisfaction puzzle: a diff-in-diff analysis for eleven EU countries
Abstract:
This paper studies the impact of different types of job-to-job transitions (from salaried employment to self-employment, from self-employment to salaried employment, and within salaried employment) on job satisfaction. Considering the three types of job transition, allows us to separate the pure mobility effect from the type of employment effect. We design an identification strategy based on the diff-in-diff approach. This is possible because our panel data allow us to compare the same individuals before and after job-to-job transitions occur. Our findings indicate that individuals who move from salaried employment to self-employment increase their overall job satisfaction more than workers who carry out other types of job transitions, while the impact of job changes on satisfaction in other job domains is mixed. We also find heterogeneous interactive effects of previous unemployment spells and self-perceived skill mismatch with job transitions depending on the type of transition. While skill mismatch is more important in the transition from salaried employment to self-employment, previous unemployment is more important for job changes within salaried employment.
Journal: Applied Economics
Pages: 5464-5483
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139813
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# input file: RAEC_A_2139812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abdullah Mohammed Al-Malki
Author-X-Name-First: Abdullah Mohammed
Author-X-Name-Last: Al-Malki
Author-Name: Mehboob-Ul Hassan
Author-X-Name-First: Mehboob-Ul
Author-X-Name-Last: Hassan
Author-Name: Jabbar Ul-Haq
Author-X-Name-First: Jabbar
Author-X-Name-Last: Ul-Haq
Title: Nexus between remittance outflows and economic growth in GCC countries: the mediating role of financial development
Abstract:
An important but underestimated area in international economics is the study of the impacts of remittance outflows and financial development on the economic growth of the remitting countries. This study explores how remittance outflows and financial development can affect the economic growth of the Gulf Cooperation Council (GCC) region using panel data from 1999 to 2018. The outcome reveals that remittance outflows are negatively related to economic growth. While financial development is effective in stimulating economic growth and is significant, the moderating role of financial development is growth-enhancing in the GCC region. Our findings are robust and insensitive to different econometric techniques. To benefit from immigrants, this research suggests a stimulus policy that GCC countries should facilitate foreign workers to settle sustainably and participate in investment activities, and increase consumption in their host country.
Journal: Applied Economics
Pages: 5451-5463
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139812
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# input file: RAEC_A_2139807_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Marta Pascual-Sáez
Author-X-Name-First: Marta
Author-X-Name-Last: Pascual-Sáez
Author-Name: Paloma Lanza-Leon
Author-X-Name-First: Paloma
Author-X-Name-Last: Lanza-Leon
Title: The mismatch of over-education and earnings in Spain: how big are differences?
Abstract:
This paper attempts to examine the incidence of over-education in Spain and to analyse the role over-education plays on an individual’s income distinguishing by gender. Following Freeman’s perspective, we can confirm over-education is due to an oversupply of qualified labour. We study over-education applying different matching techniques based on propensity score methods with microdata drawn from the European Statistics on Income and Living Conditions (EU-SILC, 2009–2019). Our results show that the incidence of over-education has increased over time and there exist huge differences by gender. Findings also demonstrate that over-education presents a negative effect on income. In fact, the real annual average earnings from over-educated women (men) can be approximately 7,000 (5,000) euros less than the average earnings of women (men) who were not over-educated. Policy implications are discussed in the light of the empirical results of our analysis.
Journal: Applied Economics
Pages: 5369-5383
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139807
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# input file: RAEC_A_2139810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Valentinas Rudys
Author-X-Name-First: Valentinas
Author-X-Name-Last: Rudys
Author-Name: Daniel Svogun
Author-X-Name-First: Daniel
Author-X-Name-Last: Svogun
Title: Optimal cryptocurrency portfolio allocation over the life cycle
Abstract:
Most of the literature on life cycle investment portfolio analysis focuses on the allocation between risky stocks and safe bonds. We introduce a new risky asset class, cryptocurrency, to a standard consumption-investment life cycle model. Our model suggests that the optimal investment profile in cryptocurrencies declines with age. Young investors mainly invest in cryptocurrency. As age and wealth increase, investors transition to mostly stocks mid-career and mostly bonds in retirement. A welfare analysis shows significant utility losses from not participating in the cryptocurrency market or not adjusting cryptocurrency portfolio shares throughout the life cycle.
Journal: Applied Economics
Pages: 5419-5433
Issue: 46
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2139810
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2139810
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# input file: RAEC_A_2140111_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Trang Huyen Dang
Author-X-Name-First: Trang Huyen
Author-X-Name-Last: Dang
Author-Name: Cuong Viet Nguyen
Author-X-Name-First: Cuong Viet
Author-X-Name-Last: Nguyen
Author-Name: Oanh Thu Thi Nguyen
Author-X-Name-First: Oanh Thu Thi
Author-X-Name-Last: Nguyen
Author-Name: Tung Duc Phung
Author-X-Name-First: Tung Duc
Author-X-Name-Last: Phung
Title: Do positive income shocks benefit children’s education? Evidence from Vietnam
Abstract:
This study investigates the causal effect of positive income shocks on education in Vietnam using the 1993 and 1998 Vietnam Living Standard Surveys. We measure income shocks by families’ lottery winnings, controlling for lottery purchases. In general, lottery winnings have no significant effect on school enrolment. However, we find a positive and significant effect from lottery winnings on expenditure for children’s education. A 1% increase in lottery winnings increases expenditure on children’s education by 0.12%. Interestingly, we find a stronger effect from lottery winnings on school enrolment and expenditure for education for girls than for boys, helping to decrease gender inequality in education.
Journal: Applied Economics
Pages: 5528-5552
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140111
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140111
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# input file: RAEC_A_2140113_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Title: External technological sources, subsidies and firm productivity in China
Abstract:
Productivity is a key factor that differentiates firm competitiveness. To promote productivity, the internal source, research and development expenditure, is undoubtedly a primary driver, while various external sources are also critical. This study examines the determinants of productivity in Chinese firms, focusing on external technological sources, especially policy-induced factors, including tariff-free imported intermediates, forced technology transfer through international joint ventures (IJVs) and production subsidies. Based on firm–customs matched data for 2001–2007, we find that the technologies embodied in imported intermediates and IJVs in technology-intensive sectors positively influence productivity. Production subsidies also have a significant and positive relationship with productivity. Overall, the above findings suggest the effectiveness of policy instruments. Further heterogeneous analyses highlight the differences in productivity effects by isolating the above factors individually in various dimensions.
Journal: Applied Economics
Pages: 5572-5590
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140113
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# input file: RAEC_A_2140110_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Amir Eslami Andargoli
Author-X-Name-First: Amir
Author-X-Name-Last: Eslami Andargoli
Author-Name: Hassan F. Gholipour
Author-X-Name-First: Hassan F.
Author-X-Name-Last: Gholipour
Author-Name: Mohammad Reza Farzanegan
Author-X-Name-First: Mohammad Reza
Author-X-Name-Last: Farzanegan
Title: Government’s support for adoption of digital technologies and firms’ innovation during the COVID-19 pandemic
Abstract:
The purpose of this study is to examine the relationship between government support, through technical assistance or subsidies, for adoption of digital technologies and the introduction of new or improved products or services by firms. By applying Probit regression to data provided in World Bank Enterprise Surveys covering the period in late 2020 to early 2021 for three lower-middle-income and high-income economies, we find that governmental support for adoption of digital technologies raised the probability of an enterprise’s innovation in those economies.
Journal: Applied Economics
Pages: 5518-5527
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140110
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# input file: RAEC_A_2140114_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: César Alonso-Borrego
Author-X-Name-First: César
Author-X-Name-Last: Alonso-Borrego
Author-Name: Raquel Carrasco
Author-X-Name-First: Raquel
Author-X-Name-Last: Carrasco
Title: Intimate partner violence and women’s health: the private and social burden
Abstract:
We assess the impact of intimate partner violence (IPV) against women on their health and healthcare use, finding that IPV substantially worsens health, and increases the hazards of hospitalization, emergency care, and sedative consumption. We exploit two compatible samples from the 2011 Spanish Violence Against Women and National Health surveys. We estimate the effect of IPV on health using a bivariate model that exploits woman’s awareness of IPV among female acquaintances to account for IPV endogeneity, and the effect of IPV on healthcare through a two-stage procedure. Hence, IPV originates high private cost, but also public, by draining healthcare resources.
Journal: Applied Economics
Pages: 5591-5611
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140114
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140114
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Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5591-5611
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# input file: RAEC_A_2140112_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jeremy Kronick
Author-X-Name-First: Jeremy
Author-X-Name-Last: Kronick
Author-Name: Steve Ambler
Author-X-Name-First: Steve
Author-X-Name-Last: Ambler
Title: Predicting financial crises: debt versus debt service ratios
Abstract:
The academic literature and the popular press emphasize high levels of household debt as a threat to financial stability. Using Canadian data, we show that the household debt service ratio is a better predictor of financial distress than measures focused on debt ratios. We construct a new financial vulnerability barometer for the Canadian economy in which the debt service ratio improves its ability to predict periods of financial vulnerability. We also show that new borrowing, while increasing economic growth in the short run, leads to an increase in debt servicing which contributes to slumps in activity and to financial instability. Finally, we show that the debt service ratio also has significant out-of-sample predictive power for growth and financial crises.
Journal: Applied Economics
Pages: 5553-5571
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140112
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140112
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Handle: RePEc:taf:applec:v:55:y:2023:i:47:p:5553-5571
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# input file: RAEC_A_2140108_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yanhui Jiang
Author-X-Name-First: Yanhui
Author-X-Name-Last: Jiang
Author-Name: Yun Hong
Author-X-Name-First: Yun
Author-X-Name-Last: Hong
Title: National media and investor sentiment dynamics: evidence from China central television using a wavelet approach
Abstract:
This paper investigates the multiscale dynamic relations between China Central Television News (CCTV News) and investor sentiment in China by employing the wavelet method. We document significant positive correlations between CCTV News’s economic focus/economic tone and investor sentiment at the raw and high-frequency levels using the wavelet DCC-GARCH model. Wavelet Granger causality tests and wavelet coherence analysis confirm that the economic focus/economic tone of CCTV News is dominant and leads investor sentiment for short-term investors. At the same time, investor sentiment can conversely affect CCTV News’s economic focus/economic tone for medium-term investors. There is a long-term interdependence between CCTV News’s economic focus/tone and investor sentiment. Furthermore, the interaction between CCTV News and investor sentiment increases in turbulent periods compared with relatively calm periods. Finally, we find that CCTV News’s economic focus and tone positively affect the stock market returns. The influence seems to be an overreaction in the short term and an underreaction in the long term.
Journal: Applied Economics
Pages: 5485-5503
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140108
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# input file: RAEC_A_2140109_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenxiang Sheng
Author-X-Name-First: Wenxiang
Author-X-Name-Last: Sheng
Author-Name: Chengyuan Wang
Author-X-Name-First: Chengyuan
Author-X-Name-Last: Wang
Author-Name: Jun Li
Author-X-Name-First: Jun
Author-X-Name-Last: Li
Title: The influences of peers on outpatient physicians’ diagnostic scan decision-making
Abstract:
Outpatient physicians’ diagnostic scan decision-making is not only related to the quality of medical diagnosis but also connected with the operations efficiency of the hospital. Identifying and understanding how outpatient physicians react to their peers in diagnostic scan decisions is an important economics issue that can help hospitals improve their operations effectiveness. Based on the data collected from a Chinese 3A Grade hospital, we reveal that peers have negative influences on outpatient physicians in deciding the number of scan orders during a shift. Relative to male physicians, female physicians are more likely to be influenced by their peers. Moreover, physicians in the surgical medicine departments are more sensitive to peers regarding decisions on scan orders, relative to those in the internal medicine departments. We further find that several conventional social interaction factors, including learning, status, and homophily, do not act on peer influence. While resource spillover caused by shared scan resource constraints, patient-volume and physician-volume can enlarge the negative peer influence, suggesting that resource spillover should be a significant driving force of the peer influence in deciding the number of scan orders. Finally, theoretical and management implications are discussed.
Journal: Applied Economics
Pages: 5504-5517
Issue: 47
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140109
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140109
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# input file: RAEC_A_2140115_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiuwen Chen
Author-X-Name-First: Xiuwen
Author-X-Name-Last: Chen
Title: Are the shocks of EPU, VIX, and GPR indexes on the oil-stock nexus alike? A time-frequency analysis
Abstract:
This paper distinguishes whether the shocks of various uncertainties on oil-stock correlation are alike from a time-frequency perspective. Specifically, using data from December 1997 to April 2021, the effects of EPU, VIX, and GPR on the interaction between Brent oil prices and stock indices in the G7 and BRIC countries are examined. The results reveal that the influence of EPU, VIX, and GPR on the oil-stock co-movement is dependent upon investment horizons. In developed markets, the most influential uncertainty index is the VIX, followed by EPU and GPR. In emerging markets, the interactions between oil prices and stock indices in Brazil and India are more susceptible to the VIX, followed by GPR and EPU. For China, the co-movement relation is more sensitive to EPU. Moreover, better prediction power on the stock market is obtained by combining oil prices and EPU or VIX. Our findings provide a crucial reference for financial risk management.
Journal: Applied Economics
Pages: 5637-5652
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140115
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140115
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# input file: RAEC_A_2208847_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yixuan Wang
Author-X-Name-First: Yixuan
Author-X-Name-Last: Wang
Author-Name: Qianbin Feng
Author-X-Name-First: Qianbin
Author-X-Name-Last: Feng
Author-Name: Lingxi Jiang
Author-X-Name-First: Lingxi
Author-X-Name-Last: Jiang
Title: Broadband infrastructure and local government fiscal risk: evidence from China
Abstract:
Network infrastructure is a cornerstone of Internet applications and digital economy. In this paper, we primarily evaluate the effect of broadband infrastructure on local government fiscal risk by using the enforcement of the ‘Broadband China’ Strategy (BCS) as an exogenous shock. After a simple theoretical analysis by establishing a three-department endogenous growth model, we conduct a staggered Difference-in-Differences (DID) estimation and use a panel datum of China’s 285 prefecture-level cities from 2003 to 2019, finding that the BCS policy apparently reduces fiscal risks of the pilot cities compared to the untreated ones. This impact is achieved through two channels: the enlargement of data creation and the enhancement of data use efficiency. Moreover, we discover that this policy contributes more to cities with mature IT industry, deepened information consumption, strong innovation capabilities and flourishing cross-border e-commerce. In addition, it is demonstrated that cities with severe financial burden always benefit more from the BCS policy; meanwhile, the policy effects will spill over to surrounding districts. Finally, we find that the construction of broadband infrastructure greatly improves residents’ satisfaction with local government. Overall, this paper provides constructive insights into broadband infrastructure for diminishing local government fiscal risks in developing countries.
Journal: Applied Economics
Pages: 5613-5636
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2023.2208847
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208847
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# input file: RAEC_A_2140116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhenxiang Zhao
Author-X-Name-First: Zhenxiang
Author-X-Name-Last: Zhao
Author-Name: Shanshan Wang
Author-X-Name-First: Shanshan
Author-X-Name-Last: Wang
Title: The marriage consumption puzzle—evidence from China
Abstract:
Marriage, as the most crucial event in one’s lifetime, not only has a significant effect on one’s future consumer preferences but also changes one’s consumer decisions. This paper addresses how individuals change their expenditure when the marital status changes, three models are developed to explore this issue based on the equilibrium of current consumption and consumption purpose with the consideration of income growth, expenditure on public goods and mating competitiveness for males and females. By selecting the married group in the panel data of China Family Panel Studies between 2016 and 2018, we use the propensity score to match all the married individuals during the 2 years and search a control group for each of them and, in addition, use the difference-in-differences (DID) method to examine the effects of marriage on individuals’ personal and public consumption. Benefiting to the model fitting the data relatively well, the results show that individual’s expenditure raises by 24% when married, with highly increasing items in public goods. At last, males cost 11.4% more than females after their marriage.
Journal: Applied Economics
Pages: 5653-5673
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140116
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140116
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# input file: RAEC_A_2140760_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tzeng Kae-Yih
Author-X-Name-First: Tzeng
Author-X-Name-Last: Kae-Yih
Title: The international spillover behaviour of implied volatilities and forecasting ability of spillover indices
Abstract:
In this study, we investigate the spillover behaviours of implied volatilities and test the forecasting power of spillover indices. By using a Diebold and Yilmaz’s (2012) framework, we capture a better overall picture of the developments of spillover effects and create a series of spillover indices by quantifying the spillover intensity for each rolling time window such that we are able to investigate the forecasting ability of spillover indices on market returns. There are several findings in this study including (1) the spillover indices of implied volatilities not only enable us to describe the spillover effects but also possess strong forecasting power on market returns, (2) implied volatilities which own emotional-related characteristic create stronger spillover mechanisms than spillover of market returns and (3) by observing the time-varying patterns of spillover indices of implied volatilities, we find that the peaks of spillover indices occur during well-known economic events such as the Lehman Brothers’ Bankruptcy and Greek debt restructuring.
Journal: Applied Economics
Pages: 5719-5735
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140760
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140760
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# input file: RAEC_A_2140117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hui Xiao
Author-X-Name-First: Hui
Author-X-Name-Last: Xiao
Author-Name: Xian Liang
Author-X-Name-First: Xian
Author-X-Name-Last: Liang
Author-Name: Huiting Xiao
Author-X-Name-First: Huiting
Author-X-Name-Last: Xiao
Author-Name: Fangting Xie
Author-X-Name-First: Fangting
Author-X-Name-Last: Xie
Title: Family care, rural labour migration and land lease: A case study of Jiangxi Province, China
Abstract:
The farmland lease is an important way to improve the scale of farmland management and agricultural modernization. Based on survey data for 578 rural households in Jiangxi Province, a Tobit model, and intermediary effect analysis method were used to determine how family care affects farmland lease by influencing off-farm employment. The main conclusions were as follows: (1) When more members of a family needed care, more rural households tended to rent in farmland. Care for the elderly and care for children aged 0–4 years had no significant impact on farmland lease, but care for children aged 5–15 years had a significant and positive influence on farmland rent-in. (2) The number of members in need of care within the family did not significantly affect farmland rent-out, but the care of children aged 0–4 years significantly reduced the possibility of farmers renting out their farmland. (3) Family care reduced the possibility of farmers renting out land but promoted land rent-in by inhibiting labour migration. (4) The intermediary effect of out-county off-farm employment in the influence of family care on farmland lease was significant, but the intermediary effect of local off-farm employment was not significant.
Journal: Applied Economics
Pages: 5674-5686
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140117
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140117
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# input file: RAEC_A_2140119_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tareq Saeed
Author-X-Name-First: Tareq
Author-X-Name-Last: Saeed
Author-Name: Neeraj Nautiyal
Author-X-Name-First: Neeraj
Author-X-Name-Last: Nautiyal
Author-Name: Mobeen Ur Rehman
Author-X-Name-First: Mobeen Ur
Author-X-Name-Last: Rehman
Author-Name: Hamed Hamdan Alsulami
Author-X-Name-First: Hamed Hamdan
Author-X-Name-Last: Alsulami
Author-Name: Mohammad S. Alhothuali
Author-X-Name-First: Mohammad S.
Author-X-Name-Last: Alhothuali
Title: Do gulf stock markets share time varying connectedness
Abstract:
This article examines the presence of spillover and time varying correlation between returns of Islamic stock markets in the Gulf region. Our sample comprises six Gulf equity market returns i.e. Oman, the UAE, KSA, Bahrain, Qatar and Kuwait ranging from June 2005 to January 2022. We use spillover and wavelet multiple cross-correlation methods for data analysis. Our results highlight that the equity markets of Oman and UAE exhibit significant correlation with each other in the medium-run investment period which decreases in the short-run. UAE highlights significant integration with rest of the Gulf markets. Our results also highlight spillover between the stock returns of UAE and Oman during both short- and long-run periods. Among all markets, UAE appears to exhibit maximum integration with other markets. These results carry implications for the investment in the Gulf stock markets during different investment horizons.
Journal: Applied Economics
Pages: 5700-5718
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140119
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140119
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# input file: RAEC_A_2140118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Do-Young Lee
Author-X-Name-First: Do-Young
Author-X-Name-Last: Lee
Author-Name: Won-Sik Hwang
Author-X-Name-First: Won-Sik
Author-X-Name-Last: Hwang
Title: Adoption and frequency of early morning delivery of food in Korea: an empirical analysis
Abstract:
Since the outbreak of the COVID-19 pandemic, consumers’ online grocery purchases have steadily increased in Korea. This study aimed to ascertain consumers’ characteristics that affect the frequency of using an innovative food delivery service, ‘early morning delivery (EMD)’. We make estimations based on the ordered probit model with sample selection that analyses the frequency of EMD use after selecting consumers with an online food purchase experience from all consumers. The empirical results show similarities and differences in the determinants of conventional online grocery shopping and EMD services. The social trend of increasing single-person households might have a negative influence on the spread of EMD services, even though consumers of the two services have common socio-demographic factors and lifestyles. Moreover, according to the marginal effects, the influences of the explanatory variables differ considerably depending on the category of EMD users.
Journal: Applied Economics
Pages: 5687-5699
Issue: 48
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140118
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140118
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# input file: RAEC_A_2140761_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anh T. N. Nguyen
Author-X-Name-First: Anh T. N.
Author-X-Name-Last: Nguyen
Title: Applying sample selection methods for panel data to analyse determinants of foreign direct divestment
Abstract:
This is the first empirical study to examine determinants of both the probability and the volume of foreign direct divestment (FDD) between countries, applying sample selection methods for panel data. The data cover 137 host countries and 169 source countries, from 2004 to 2012. Empirical evidence shows that market size and GDP growth of both host and source countries, as well as a bilateral investment treaty, discourage divestment. By contrast, sharing a common currency has a positive impact on divestment. Distance negatively affects the divestment amount but does not show any statistically significant impact on the probability of divestment. Neither do political stability, colonial relationship, common language, or common religion play an important role in FDD. This study opens up an area for future research in terms of both theory and empirics since FDD is still a neglected area in international economics.
Journal: Applied Economics
Pages: 5737-5749
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140761
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140761
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# input file: RAEC_A_2140762_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Long Yang
Author-X-Name-First: Long
Author-X-Name-Last: Yang
Author-Name: Haiyang Lu
Author-X-Name-First: Haiyang
Author-X-Name-Last: Lu
Author-Name: Meng Li
Author-X-Name-First: Meng
Author-X-Name-Last: Li
Title: Does mobile broadband use promote smallholder entrepreneurship? Evidence from rural China
Abstract:
This study explored the impact of mobile broadband use on smallholders’ entrepreneurial engagement and willingness using data from a household survey collected from three provinces in China. We used an endogenous switching probit model to account for the potential selection bias associated with mobile broadband use. The empirical results indicated that mobile broadband use exerted positive and statistically significant impacts on smallholders’ entrepreneurial engagement and willingness. In particular, we found that mobile broadband use increased the probability of smallholders’ entrepreneurial engagement and willingness by 15.1 and 50.9% points, respectively. Further analysis revealed that the effects of mobile broadband use on smallholder entrepreneurship were heterogeneous across regions. Additionally, we found that while the impact of mobile broadband use on entrepreneurial engagement was the largest for smallholders with high income, its impact on entrepreneurial willingness appeared to be the greatest for smallholders with low income. This study extended the literature by analysing smallholder entrepreneurship and provided evidence on the effect of mobile ICT on smallholder entrepreneurship.
Journal: Applied Economics
Pages: 5750-5767
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140762
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140762
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# input file: RAEC_A_2140764_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Juandan Zhong
Author-X-Name-First: Juandan
Author-X-Name-Last: Zhong
Author-Name: Huaigang Long
Author-X-Name-First: Huaigang
Author-X-Name-Last: Long
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Author-Name: Jiqian Wang
Author-X-Name-First: Jiqian
Author-X-Name-Last: Wang
Title: International commodity-market tail risk and stock volatility
Abstract:
Using the method of, this study constructs a tail risk predictor of the international commodity market to forecast US stock volatility. The in-sample results show that tail risk contains significant interpretive ability for stock volatility. Being of our interest, the tail risk predictor can successfully predict the US stock volatility from both statistical and economic viewpoints. The results of controlling 12 popular macroeconomic variables suggest that tail risk contains incremental information for stock volatility. To further confirm our findings, we examine the forecasting performance of the tail risk predictor for 12 industrial portfolios.
Journal: Applied Economics
Pages: 5790-5799
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140764
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# input file: RAEC_A_2140767_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lian Cai
Author-X-Name-First: Lian
Author-X-Name-Last: Cai
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Author-Name: Zhenguo Wang
Author-X-Name-First: Zhenguo
Author-X-Name-Last: Wang
Author-Name: Zijian Liu
Author-X-Name-First: Zijian
Author-X-Name-Last: Liu
Title: Does the rise of global value chain position increase or reduce domestic income inequality?
Abstract:
Most studies investigate the relationship between global value chain position (GVC position) and income inequality through labour’s wage aspect. And they attribute the increasing domestic income inequality to the rise of the country’s GVC position, which may widen the wage gap between heterogeneous labour. However, wage income distribution is just part of the domestic residents’ income distribution and factor income distribution also matters. In view of this, we add labour share as well as labour’s wage gap into one system, and use united theoretical and empirical analyses to explore the impact of GVC position on domestic income inequality. Research findings show that: (1) The rise of GVC position will reduce domestic income inequality. (2) The channels by which GVC position affects domestic income inequality are labour share and wage gap. Although the rising GVC position will improve domestic income inequality by increasing wage gap, it will decrease domestic income inequality more by increasing labour share. And the overall impact of both effects would reduce domestic income inequality.
Journal: Applied Economics
Pages: 5833-5845
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140767
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# input file: RAEC_A_2140766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qing Liu
Author-X-Name-First: Qing
Author-X-Name-Last: Liu
Author-Name: Shouyang Wang
Author-X-Name-First: Shouyang
Author-X-Name-Last: Wang
Author-Name: Cong Sui
Author-X-Name-First: Cong
Author-X-Name-Last: Sui
Title: Market volatility, market skewness, and the cross-section of expected returns in Chinese equity markets
Abstract:
We examine the impact of upper (lower) market volatility and skewness risks on stock returns. Our results show that market volatility and skewness risks have no significant effect on future stock returns. However, when separately considering call and put options, we find a significantly negative relation between innovations in upper market volatility (skewness) extracted from call options and subsequent stock returns. Moreover, the results remain significant after controlling for other known factors included in the factor models or a battery of firm-level characteristics. Our research shows that call and put options contain different information, and are differently priced in the stock market. This study can help explain the inconsistent results of the recent papers on asset pricing about market volatility and skewness.
Journal: Applied Economics
Pages: 5816-5832
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140766
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# input file: RAEC_A_2140765_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jing Tan
Author-X-Name-First: Jing
Author-X-Name-Last: Tan
Author-Name: Yaqiao Zhang
Author-X-Name-First: Yaqiao
Author-X-Name-Last: Zhang
Author-Name: Hui Cao
Author-X-Name-First: Hui
Author-X-Name-Last: Cao
Title: The FDI-spawned technological spillover effects on innovation quality of local enterprises: evidence from industrial firms and the patents in China
Abstract:
Foreign direct investment is a topic of crucial importance for emerging market countries for capital accumulation, innovation and sustainable development. From the perspective of technological innovation, the article explores how ‘desirable’ the FDI is in stimulating domestic innovation. Using industrial firm-level data from 1998 to 2013 combined with patent database from China National Intellectual Property Administration and patent citations from Google Patents, the article captures the significant impact of innovation quality of regional FDI on the innovation quality of local firms with both multi-fixed effects and instrumental variable estimations, which are proved to be reliable with robustness checks. Further, under different entry modes, the article finds that M&A FDI plays a more positive role in spillovers compared with greenfield investment. Finally, the article explores the upstream and downstream linkage benefits and intra-industrial benefit from FDI innovation, which shows that the intra-industrial benefit, or the demonstration effect is prominent. Our article renders a more direct micro evidence of FDI spillovers and sheds light on FDI attracting policies.
Journal: Applied Economics
Pages: 5800-5815
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140765
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# input file: RAEC_A_2140763_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andrea Bastianin
Author-X-Name-First: Andrea
Author-X-Name-Last: Bastianin
Author-Name: Chiara F. Del Bo
Author-X-Name-First: Chiara F.
Author-X-Name-Last: Del Bo
Author-Name: Massimo Florio
Author-X-Name-First: Massimo
Author-X-Name-Last: Florio
Author-Name: Francesco Giffoni
Author-X-Name-First: Francesco
Author-X-Name-Last: Giffoni
Title: Projecting the socio-economic impact of a big science center: the world’s largest particle accelerator at CERN
Abstract:
Public investment in Big Science generates social benefits that can ultimately support economic growth. This paper implements a model for the social Cost – Benefit Analysis (CBA) of Big Science and relies on Monte Carlo methods to quantify the uncertainty of long-term projections. We evaluate social costs and benefits of the High Luminosity upgrade of the Large Hadron Collider (HL-LHC) at CERN up to 2038. Monte Carlo simulations show that there is a 94% chance to observe a positive net present value for society. The attractiveness of CERN for Early Stage Researchers and technological spillovers for collaborating firms are key for a positive CBA result. Cultural effects, especially those related to onsite visitors, also contribute to generating societal benefits.
Journal: Applied Economics
Pages: 5768-5789
Issue: 49
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140763
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# input file: RAEC_A_2140773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hao Nong
Author-X-Name-First: Hao
Author-X-Name-Last: Nong
Author-Name: Xianghua Wu
Author-X-Name-First: Xianghua
Author-X-Name-Last: Wu
Author-Name: Yuanying Jiang
Author-X-Name-First: Yuanying
Author-X-Name-Last: Jiang
Title: A dual perspective inflation analysis of China with large dimensional data: an application of large VARs model
Abstract:
The inflation rate was an important indicator for monitoring macroeconomic operations. In this study, we analysed the reasons for the divergence of consumer-side inflation (CPI) and production-side inflation (PPI) trends through large-dimensional data, so as to consider the impact of various macroeconomic factors on the inflation. From the perspective of the diversity of inflation rate formation mechanisms and model fitted performance, we used the large BVAR/large TVP-VAR models for analysis, considered the analysis capability and time-varying adaptability to large dimensional data. In view of the impulse response, we found that the impulse responses of CPI were relatively flat, and the responses of inflation were not exactly the same in both perspectives. The effects of various variables on the inflation in China were highly time-varying. In summary, the macro factors that led to significantly different responses and should be focused on energy prices, chemical prices, food prices, 7-day Inter Bank Offered Rate, narrow measure of money supply and the interaction between PPI and CPI. Accordingly, policymakers could develop more thoughtful and detailed scenarios from our findings. Moreover, the impulse response mechanism of each indicator to the inflation has validated the applicability of large dimensional analysis in macroeconomic studies.
Journal: Applied Economics
Pages: 5939-5955
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140773
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140773
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# input file: RAEC_A_2140771_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Mabruk Billah
Author-X-Name-First: Mabruk
Author-X-Name-Last: Billah
Author-Name: Sanjeev Kumar
Author-X-Name-First: Sanjeev
Author-X-Name-Last: Kumar
Author-Name: Md. Kausar Alam
Author-X-Name-First: Md. Kausar
Author-X-Name-Last: Alam
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Title: Analysis of the frequency dynamics of spillovers and connectedness among Islamic and conventional banks and their determinants: evidence from Gulf Cooperative Council (GCC) markets
Abstract:
The study investigates the return spillovers across 20 Islamic and 34 conventional banks among GCC markets (UAE, Saudi Arabia, Bahrain, Qatar, Kuwait) over the period 2005–2022 based on Dieobold and Yilmaz (2014) and Barunik and Krehlik (2018) methods. The outcomes interestingly reveal that the spillover between markets is time-varying, asymmetric, and crisis-sensitive. Moreover, short-oriented spillovers dictate the long-oriented spillovers, while long-oriented spillovers establish the major chunk of the total return spillovers. The results of the DY and BK approach show a weak connectedness between all Islamic banks rather than conventional banks of GCC. Subsample analysis of COVID-19 and GFC strengthens the total and short-oriented spillovers more than long-term spillovers. The global financial stress is exposed with the most substantial coherence, increasing the connectedness of Islamic banks in the short and long-oriented markets compared to conventional banks. The results of the study have practical implications for bankers, central banks, Islamic banks, policymakers, international economic institutions, banking investors, FIIs, DIIs, and academia. Additionally, the current findings can be guiding forces for many investors across the world to take their portfolio decision by leveraging Islamic banks’ securities.
Journal: Applied Economics
Pages: 5895-5924
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140771
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# input file: RAEC_A_2140769_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongdong Ma
Author-X-Name-First: Hongdong
Author-X-Name-Last: Ma
Author-Name: Gang Li
Author-X-Name-First: Gang
Author-X-Name-Last: Li
Author-Name: Rongyue Liu
Author-X-Name-First: Rongyue
Author-X-Name-Last: Liu
Author-Name: Kexin Zhang
Author-X-Name-First: Kexin
Author-X-Name-Last: Zhang
Author-Name: Zijian Wang
Author-X-Name-First: Zijian
Author-X-Name-Last: Wang
Title: Research on credit scoring method matching the probability of default: evidence from Lending Club
Abstract:
In the credit loan practices of lending platforms, there is a mismatch problem between borrowers’ credit scoring and the probability of default (PD), which cannot provide a basis for the credit loan decision. Firstly, the Wald test is used to select the single indicator with a strong default identification ability, and Lasso-Logistic regression is used to determine the optimal combination of indicators with the overall default identification ability to construct the credit scoring indicator system. Secondly, by randomly dividing non-default samples, this article forms multiple groups of balanced samples with default samples to perform Lasso-Logistic regression, and multiple groups of Lasso-Logistic regression coefficients and expert opinion are used to determine the optimal indicator weight and calculate the credit score. The empirical work is developed through 43,471 and 24,153 samples of Lending Club. The results show that the proposed credit scoring method is effective. The credit scoring method proposed in this paper solves the mismatch problem between credit scoring and PD in credit loan decision-making practice. The findings of this paper provide references for assisting credit loan decision-making, reducing bankers’ investment risks, and alleviating borrowers’ financing problems.
Journal: Applied Economics
Pages: 5864-5877
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140769
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# input file: RAEC_A_2140776_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chu Lin
Author-X-Name-First: Chu
Author-X-Name-Last: Lin
Author-Name: Wei Sun
Author-X-Name-First: Wei
Author-X-Name-Last: Sun
Title: Central environmental protection inspection, environmental quality, and economic growth: evidence from China
Abstract:
How to enhance local governments’ enforcement of environmental regulations in developing countries? Whether central inspection can properly motivate local governments to implement environmental regulations, and how would it affect economic growth? This paper examines the effectiveness of China’s Central Environmental Protection Inspection (CEPI) program, which aimed to promote local governments’ enforcement of environmental regulations through central inspection. Using a difference-in-differences approach, we find that the CEPI program caused a significant reduction in air pollution and economic growth, indicating that the CEPI program introduced a substantial trade-off between environmental quality and economic growth. Further analysis shows that the effect of this program on air quality and economic growth is temporary. Moreover, we find that the effect is more significant when the local officials with higher promotion potential. Further cost-benefit analysis suggests that the cost of the CEPI program far exceeds its benefit.
Journal: Applied Economics
Pages: 5956-5974
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140776
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140776
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# input file: RAEC_A_2140770_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rami Zeitun
Author-X-Name-First: Rami
Author-X-Name-Last: Zeitun
Author-Name: Mohamed Goaied
Author-X-Name-First: Mohamed
Author-X-Name-Last: Goaied
Title: Corporate governance and capital structure: dynamic panel threshold analysis
Abstract:
This paper examines the nonlinear connection between corporate governance (CG) and corporate leverage. Our study applied the dynamic panel threshold model (DPTM) to facilitate the capture of the nonlinear effect of CG on a firm’s leverage for Japanese listed companies. Additionally, our study sought to demonstrate the linkage between CG and the speed of adjustment (SOA), particularly following the reforms in Japan’s CG system, to reach a targeted level of leverage. The empirical findings confirm the presence of the threshold influence of managerial ownership and board size, thus confirming their nonlinear impact on capital structure. Moreover, at a low level of managerial ownership, the SOA for firms to achieve the optimal level of leverage is faster than it is for firms with a high level of managerial ownership (MO), while firms with a larger board achieve their targeted level of leverage quicker than firms with a smaller board. Our findings indicate that recent reforms in Japan’s CG system seem to have been inefficient, with no positive effect on corporate leverage.
Journal: Applied Economics
Pages: 5878-5894
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140770
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# input file: RAEC_A_2140768_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yunsheng Zhang
Author-X-Name-First: Yunsheng
Author-X-Name-Last: Zhang
Author-Name: Ruomeng Zhou
Author-X-Name-First: Ruomeng
Author-X-Name-Last: Zhou
Author-Name: Nanxu Chen
Author-X-Name-First: Nanxu
Author-X-Name-Last: Chen
Title: Identification and correction of ratchet effect of residential land price: empirical study on urban agglomeration in China
Abstract:
This paper theoretically analyses the mechanism of the ratchet effect of land finance and adaptive expectations on residential land prices and discuss the distort factors and spatial characteristics of residential land price in the Yangtze River Delta urban agglomeration (YRDUA) from 2008 to 2018. It is found that:(1) Land finance and adaptive expectations significantly drive the long-term growth of residential land prices and maintain the ratchet effect under the interaction. (2) There are significant spatial spillover benefits of residential land prices, and land finance and adaptive expectations not only drive the increase of local residential land prices but also have significant positive benefits on residential land prices in neighbouring areas. (3) Land price distortion is significant in municipalities directly under the central government and provincial capitals. However, residential land prices in cities farther away from large cities are lower than their reasonable values, and the distortion correction coefficient shows a spatially graded distribution spreading from large cities to the periphery. Land finance and adaptive expectations do not make residential land prices in all cities higher than their reasonable values. The above findings have some theoretical and policy implications for optimizing land administration.
Journal: Applied Economics
Pages: 5847-5863
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140768
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# input file: RAEC_A_2140772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yongyi Zhu
Author-X-Name-First: Yongyi
Author-X-Name-Last: Zhu
Author-Name: Di Yu
Author-X-Name-First: Di
Author-X-Name-Last: Yu
Title: Education and happiness: does education expenditure undermine households’ subjective well-being? Evidence from China
Abstract:
Education expenditure accounts for a rising proportion of household income and gradually becomes a burden on households. Few studies have analysed whether the household’s subjective well-being (SWB) decreases under these conditions. To fill the gap, we explore the nexus between education expenditure and the SWB of households, using China Household Finance Survey data. The results confirm that education expenditure significantly attenuates the SWB of Chinese households. Moreover, empirical results suggest that the ‘arms race’ in education investment, the crowding out effect on other household consumption, and the synergy effect on family liabilities are three channels for education expenditure’s adverse effects on SWB. Further analysis shows that this expenditure’s detrimental impacts are more significant in provinces with high Gaokao pressure and the middle-income class, indicating that Gaokao pressure is the main driving force for the education arms race in China and that middle-class families are the most likely to be involved and be injured in the education arms race. Our findings confirm that the ‘double reduction’ regulation is necessary, and relevant policies require improvement to promote equality in education and achieve higher life satisfaction for people across China.
Journal: Applied Economics
Pages: 5925-5938
Issue: 50
Volume: 55
Year: 2023
Month: 10
X-DOI: 10.1080/00036846.2022.2140772
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140772
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# input file: RAEC_A_2141447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bing Ye
Author-X-Name-First: Bing
Author-X-Name-Last: Ye
Author-Name: Qianwen Cao
Author-X-Name-First: Qianwen
Author-X-Name-Last: Cao
Title: Environmental regulation and development of the tertiary industry
Abstract:
Environmental regulation has become an important policy practice in many countries, and it has an effect on economic development. Previous literature has focused on the effect of environmental regulation on the development of the aggregate economy or the secondary industry while ignoring its effect on the development of the tertiary industry. Accordingly, we systemically identify for the first time the causal effect of environmental regulation on the development of the tertiary industry. Exploiting the great exogenous variation in regulatory intensity generated by China’s 2013 Air Pollution Prevention and Control Action Plan, we apply the difference-in-difference method to China’s province-sector panel data from 2009 to 2017. The results suggest that environmental regulation reduces the fixed asset investment and value-added of tertiary sectors but increases the establishment of legal entities in tertiary sectors. Thus, environmental regulation does lead some production resources flowing to local tertiary sectors. However, this flow fails to reverse the decline in the investment and production of local tertiary sectors. Environmental regulation affects the development of the tertiary industry through industrial linkages between the secondary and tertiary industries, the flow of production resources from the secondary to the local tertiary industry, and the local governments’ taxation and spending behaviour.
Journal: Applied Economics
Pages: 6025-6041
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141447
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141447
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# input file: RAEC_A_2141452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Author-Name: Mingquan Zhou
Author-X-Name-First: Mingquan
Author-X-Name-Last: Zhou
Title: The estimation of house bubbles during the time of pandemic: a study of Australia
Abstract:
While the economy slid into a recession since the onset of the COVID-19 pandemic, the house prices in many markets have reached historical highs. This research aims to examine how much the recent large increases in the prices can be explained by bubbles and whether the overvaluation is due to momentum or intrinsic bubbles. A present value model is constructed to estimate real estate bubbles with one dynamic and three assumed net rental yields. The empirical focus is on Sydney, Melbourne and Brisbane, the three largest residential property markets in Australia, that have experienced a rapid growth in house prices since the outbreak of coronavirus. The finding demonstrates the evidence of bubbles in all three markets during the study period but the degree of overvaluation varies. We also discover that momentum bubbles exist in these markets but the overvaluation is mainly explained by intrinsic bubbles.
Journal: Applied Economics
Pages: 6076-6089
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141452
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# input file: RAEC_A_2141448_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rewat Khanthaporn
Author-X-Name-First: Rewat
Author-X-Name-Last: Khanthaporn
Author-Name: Nuttanan Wichitaksorn
Author-X-Name-First: Nuttanan
Author-X-Name-Last: Wichitaksorn
Title: Modelling and forecasting COVID-19 stock returns using asymmetric GARCH-ICAPM with mixture and heavy-tailed distributions
Abstract:
COVID-19 pandemic is an extreme event that created turmoil in stock markets around the world. This unexpected circumstance poses a critical question of whether the prevailing models can help predict the plummets of indices, hence the returns. In this study, we aim to analyse and forecast the daily stock returns using various generalized autoregressive conditional heteroscedastic (GARCH) models with intertemporal capital asset pricing structure and innovation following (1) a mixture of generalized Pareto and Gaussian distributions and (2) generalized error distribution that can capture extreme events. We also employ the parallel griddy Gibbs (GG) sampling, which is a Markov chain Monte Carlo method, to facilitate parameter estimation. Our simulation study shows that the GG estimation method outperforms the benchmark quasi-maximum likelihood estimation method. We then proceed to the empirical study of seven stock markets where the results from the in-sample period before the COVID-19 pandemic justify the use of the proposed GARCH models. The out-of-sample forecasts during the early COVID-19 period also show satisfactory results.
Journal: Applied Economics
Pages: 6042-6061
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141448
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Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:6042-6061
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# input file: RAEC_A_2141444_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mariana Saenz
Author-X-Name-First: Mariana
Author-X-Name-Last: Saenz
Author-Name: Joshua J. Lewer
Author-X-Name-First: Joshua J.
Author-X-Name-Last: Lewer
Title: Estimates of Trade Based Money Laundering within the European Union
Abstract:
This paper applies a Multiple Indicators Multiple Causes Model to benchmark trade-based money laundering (TBML) activity for 26 European Union member countries between 2005 and 2015. Results indicate substantial TBML levels in the region averaging between $0.9 to $1.8 trillion USD annually. Surprisingly, we also find that TBML is a complement to traditional money laundering activities. Policies focusing on deterring traditional money laundering and tax evasion are associated with reduced TBML activity in the region. Aggressive government attitude towards traditional money laundering and illicit drug trade, without effectively reducing the illicit proceeds, can deter the detection of money laundering and increase TBML.
Journal: Applied Economics
Pages: 5991-6003
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141444
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141444
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# input file: RAEC_A_2141450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Moritz Wagner
Author-X-Name-First: Moritz
Author-X-Name-Last: Wagner
Author-Name: Xiaopeng Wei
Author-X-Name-First: Xiaopeng
Author-X-Name-Last: Wei
Title: Ex-dividend day price and volume: the case of cum-ex trading
Abstract:
In this paper, we analyse the extent of cum-ex trading in European markets. We document that the abnormal trading activity around the dividend day of a stock can be attributed to cum-ex trading, in addition to existing tax clientele hypotheses. Cum-ex trading is positively associated with dividend yield, which is consistent with maximizing returns from this strategy. Based on abnormal trading volume, we estimate a substantial loss to treasuries due to illicit tax refunds of withholding tax on dividends. Our results are robust, controlling for confounding effects and investors’ tax preference and heterogeneity.
Journal: Applied Economics
Pages: 6062-6075
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141450
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141450
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Handle: RePEc:taf:applec:v:55:y:2023:i:51:p:6062-6075
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# input file: RAEC_A_2140777_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: José Simão Filho
Author-X-Name-First: José Simão
Author-X-Name-Last: Filho
Author-Name: Elder Tiago C. de Souza
Author-X-Name-First: Elder Tiago C.
Author-X-Name-Last: de Souza
Title: Can central bank credibility promote a substitution effect in the monetary transmission mechanism?
Abstract:
We analysed whether the credibility of the Central Bank of Brazil (CBB) influences the substitution effect between the interest channel and the inflation expectations channel. Specifically, based on a DSGE model, we investigate the effects of central bank credibility on key domestic macroeconomic variables. The results show that higher central bank credibility reduces the harmful effect of fighting inflation on domestic macroeconomic variables.
Journal: Applied Economics
Pages: 5975-5990
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2140777
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2140777
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# input file: RAEC_A_2141445_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christophe J. Godlewski
Author-X-Name-First: Christophe J.
Author-X-Name-Last: Godlewski
Title: Private debt renegotiation, corporate policies, and performance: empirical evidence from Europe
Abstract:
We investigate the effects of private debt renegotiation on a firm’s performance and financial and investment policies. We employ endogenous switching regressions using a large cross-country sample of loans issued and amended over a long-term in Europe. We find that bank loan renegotiation has an economically significant and causal impact on financial policy and performance. Renegotiation offers firm added degrees of freedom and unlocks its economic potential, implying significant effects of the firm’s tangibility, growth, opportunities, and cash on financial policy and performance. Bank loan renegotiation also shows a certification and signalling effect, which can increase the effect of amendments to the credit agreement on a firm’s financial policy.
Journal: Applied Economics
Pages: 6004-6024
Issue: 51
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141445
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141445
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# input file: RAEC_A_2141462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Stefano Cabras
Author-X-Name-First: Stefano
Author-X-Name-Last: Cabras
Author-Name: Marco Delogu
Author-X-Name-First: Marco
Author-X-Name-Last: Delogu
Author-Name: J.D. Tena
Author-X-Name-First: J.D.
Author-X-Name-Last: Tena
Title: Forced to play too many matches? A deep-learning assessment of crowded schedule
Abstract:
Do important upcoming or recent scheduled tasks affect the current productivity of working teams? How is the impact (if any) modified according to team size or by external conditions faced by workers? We study this issue using association football data where team performance is clearly defined and publicly observed before and after completing different activities (football matches). UEFA Champions League (CL) games affect European domestic league matches in a quasi-random fashion. We estimate this effect using a deep learning model. This approach is instrumental in estimating performance under ‘what if’ situations required in a causal analysis. We find that dispersion of attention and effort to different tournaments significantly worsens domestic performance before/after playing the CL match. However, the size of the impact is higher in the latter case. Our results suggest that this distortion is higher for small teams and that, compared to home teams, away teams react more conservatively by increasing their probability of drawing.
Journal: Applied Economics
Pages: 6187-6204
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141462
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141462
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# input file: RAEC_A_2209355_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shiyu Jiang
Author-X-Name-First: Shiyu
Author-X-Name-Last: Jiang
Title: Task supply, wage earning, and segmentation among natives and two generations of immigrants in Canada
Abstract:
The different life paths of the generation following immigration have become a matter of public discussion and scholarly research in the past decades in many migrant-receiving countries. These differences would be key points for the immigration decision made by first-generation immigrants. This paper adopts a new perspective to study the differences in task supplies and economic status between natives and two generations of immigrants to see their different life paths. This paper estimates differences in task supply and earnings between natives and immigrants in 1970 and 2015, which are the beginning and end of the fifth (and current) wave of immigration to Canada. Furthermore, using a three-fold Blinder-Oaxaca decomposition, I link the average weekly wage of workers to their task productivity, and try to find the effects of the returns to tasks as well as different task supplies on the average wage gap between natives and immigrants. Finally, I use ordered probit and logit models to demonstrate and measure the significant effects of immigrant status on an employee’s labour market segment.
Journal: Applied Economics
Pages: 6205-6221
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2023.2209355
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2209355
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Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6205-6221
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# input file: RAEC_A_2141461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aakanksha Shrawan
Author-X-Name-First: Aakanksha
Author-X-Name-Last: Shrawan
Author-Name: Amlendu Dubey
Author-X-Name-First: Amlendu
Author-X-Name-Last: Dubey
Title: Dynamics of structural transformation and business cycle synchronization: a panel quantile regression approach for India
Abstract:
Recent contributions to the business cycle literature point towards the presence of potential nonlinearities in the relationship between similarities in sectoral composition of countries and their bilateral business cycle synchronization. By using a dynamic indicator of structural change (as opposed to the traditional static indicators), this article attempts to identify whether the similarities in the evolution of structural change across countries influence their bilateral business cycle synchronization heterogeneously across quantiles. With focus on India and its advanced and developing trade partners, this article employs the quantile regression model with non-additive fixed effects to assess this relationship. While India and its advanced countries' trade partners display a homogeneous and positive relationship between the similarity in evolution of agriculture and industry and their bilateral business cycle synchronization, there exists a homogeneously negative relationship with respect to the service sector. Similarities in the evolution of the industry and the service sector between India and its developing trade partners, on the other hand, have a heterogeneous impact on their bilateral business cycle synchronization.
Journal: Applied Economics
Pages: 6170-6186
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141461
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141461
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Handle: RePEc:taf:applec:v:55:y:2023:i:52:p:6170-6186
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# input file: RAEC_A_2141458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pietro De Ponti
Author-X-Name-First: Pietro
Author-X-Name-Last: De Ponti
Author-Name: Valeria Gattai
Author-X-Name-First: Valeria
Author-X-Name-Last: Gattai
Title: Family firms, productivity and input specificity: An empirical assessment of Italian firms’ sourcing
Abstract:
This paper provides an empirical assessment of Italian firms’ sourcing. Combining the international economics literature on global sourcing with the family business and international business literature on family firms (FFs)’ internationalization, we build a comprehensive framework in which sourcing is shaped by location (domestic versus foreign sourcing) and ownership (integration versus outsourcing) decisions. Relying on a new firm-level, cross-sectional dataset on a stratified sample of Italian manufacturing firms, we address the relationship between sourcing and various firm-level features. Our probit and multinomial probit estimates highlight family presence in ownership and control, total factor productivity and reliance on specific inputs as the main drivers of sourcing. While playing little role in shaping the ownership decision, both FF status and total factor productivity affect location choices, fostering domestic and foreign sourcing, respectively. Conversely, reliance on specific inputs is key in orienting the ownership decision, promoting integration over outsourcing. Our study contributes to the international economics literature on global sourcing by studying factors other than productivity and input specificity that affect input procurement; moreover, it contributes to the family business and international business literature on FFs’ internationalization by taking a supply-side perspective and investigating sourcing through the interplay between location and ownership choices.
Journal: Applied Economics
Pages: 6133-6148
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141458
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141458
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# input file: RAEC_A_2141455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Usman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Usman
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Dang Khoa Tran
Author-X-Name-First: Dang Khoa
Author-X-Name-Last: Tran
Title: Spillovers from stock markets to currency markets: Evidence from Copula-CoVar with time-varying higher moments
Abstract:
This study analyses the relationship between equites and foreign exchange markets by employing a conditional value at risk (CoVaR) framework for developed and developing economies accounting for an upside or downside shock, greater or equal to their VaRs. The CoVaR of currency returns conditional on both, the local equity and SP500 index are significant and greater than their unconditional VaRs for most currencies. The ∆CoVaRs for currency market conditional on the local stock index are greater than those conditional on the SP500, showing that local stock index provides greater contributions to the shocks in currency returns compared to the SP500 index. Our findings have important implications for developing cross-market and cross-border hedging strategies.
Journal: Applied Economics
Pages: 6091-6114
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141455
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141455
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# input file: RAEC_A_2141457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ling Li
Author-X-Name-First: Ling
Author-X-Name-Last: Li
Author-Name: Xueli Zhang
Author-X-Name-First: Xueli
Author-X-Name-Last: Zhang
Author-Name: Yuan Chen
Author-X-Name-First: Yuan
Author-X-Name-Last: Chen
Author-Name: Bingsheng Liu
Author-X-Name-First: Bingsheng
Author-X-Name-Last: Liu
Author-Name: Guobin Wu
Author-X-Name-First: Guobin
Author-X-Name-Last: Wu
Title: Investigating influencing factors of regional healthcare efficiency: a case study of China
Abstract:
Healthcare as a kind of service is closely related to human health, but its uneven distribution among regions could affect the equity of residents’ access to the service and lead to the unbalanced development of healthcare levels. Therefore, this article establishes an integrated model by means of the stochastic frontier analysis method to evaluate regional healthcare efficiency and analyse its influencing factors. Specifically, the distribution and change trend of healthcare technical output (TO) efficiency and health output (HO) efficiency are investigated from the temporal and spatial perspectives, and then the influencing factors of the two types of healthcare efficiency are explored, respectively. Taking China as a case study, the results show that there are obvious regional differences in TO efficiency as a whole, where the values of the eastern and central regions are significantly higher, while the western and northeast regions have lower TO efficiency. Economic, social, and regional factors have a significant influence on both TO efficiency and HO efficiency, among which the impacts of population density on the two types of efficiency are opposite. Accordingly, some policy recommendations have been put forward for improving regional healthcare efficiency.
Journal: Applied Economics
Pages: 6115-6132
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141457
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141457
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# input file: RAEC_A_2141460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: James E. Payne
Author-X-Name-First: James E.
Author-X-Name-Last: Payne
Author-Name: Saban Nazlioglu
Author-X-Name-First: Saban
Author-X-Name-Last: Nazlioglu
Author-Name: Andrea Mervar
Author-X-Name-First: Andrea
Author-X-Name-Last: Mervar
Title: Regional tourism convergence: a disaggregated analysis of Croatia
Abstract:
This study examines tourism convergence across regions within a country as a means to understand the extent to which there is segmentation of regional tourism markets and the differential impact of domestic versus foreign tourism. Additionally, our empirical analysis introduces a newly developed weak σ-convergence test alongside the club convergence approach to explore regional tourism convergence. Using disaggregated monthly county-level data for Croatia from 1998:1 to 2021:9, the results clearly identify the divergence across counties to suggest the regional segmentation of tourism in the country between coastal and continental regions. The policy implications of the results are also discussed.
Journal: Applied Economics
Pages: 6149-6169
Issue: 52
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141460
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141460
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# input file: RAEC_A_2141464_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ángela Castillo-Murciego
Author-X-Name-First: Ángela
Author-X-Name-Last: Castillo-Murciego
Author-Name: Julio López-Laborda
Author-X-Name-First: Julio
Author-X-Name-Last: López-Laborda
Title: Tax haven investments for Profit-Shifting: evidence from Spanish multinationals
Abstract:
Tax havens may play a key role in the Profit-Shifting (P-S) activity of Multinational Companies (MNCs), since, among other characteristics, they are the territories with the most beneficial taxes for foreign investors. This article shows that Spanish MNCs facing higher tax rates in non-tax havens, and therefore those that stand to gain the most from P-S, are more likely to invest in tax havens. This outcome is robust to at least two different tax haven lists and various definitions of the non-haven tax rate. The size of the MNCs’ activity, their use of intangible assets, and belonging to the Ibex 35 stock index also positively affect the probability of investing in tax havens. By economic sectors, once the endogeneity problem is controlled for, the incentive is greater for manufacturing than for service firms, but it is especially high for financial firms. Additionally, while non-haven tax rates positively influence the number of different tax havens used by firms, they have no effect on the number of affiliates located within them. Finally, the article estimates that Spanish MNCs have been able to save about 4 billion euros per year in Corporate Income Tax in the period 2013–2018 as a result of P-S.
Journal: Applied Economics
Pages: 6250-6263
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141464
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141464
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# input file: RAEC_A_2142191_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Akihiro Kubo
Author-X-Name-First: Akihiro
Author-X-Name-Last: Kubo
Title: Which inflation targeters respond to exchange rate movements? Evidence from emerging market economies
Abstract:
There is a significant difference between de facto and de jure regimes in terms of exchange rates, especially in emerging market economies. A simple open economy model is used to test the empirical plausibility of a managed exchange rate system in which the monetary authority responds to exchange rate movements with foreign exchange intervention as an additional goal of monetary policy. This study demonstrates that this system fits the data better than a float-system specification. In addition, it is found that the authorities in Asian countries are more likely to intervene in the foreign exchange market with a higher degree of concern regarding exchange rate movements. The study empirically confirms that all emerging market inflation targeters have employed a de facto managed exchange rate system while adopting a de jure float system.
Journal: Applied Economics
Pages: 6264-6276
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2142191
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2142191
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# input file: RAEC_A_2153790_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Livia De Giovanni
Author-X-Name-First: Livia
Author-X-Name-Last: De Giovanni
Author-Name: Pierpaolo D’Urso
Author-X-Name-First: Pierpaolo
Author-X-Name-Last: D’Urso
Author-Name: Nadia Fiorino
Author-X-Name-First: Nadia
Author-X-Name-Last: Fiorino
Author-Name: Emma Galli
Author-X-Name-First: Emma
Author-X-Name-Last: Galli
Author-Name: Giampaolo Garzarelli
Author-X-Name-First: Giampaolo
Author-X-Name-Last: Garzarelli
Author-Name: Antonio Pacifico
Author-X-Name-First: Antonio
Author-X-Name-Last: Pacifico
Title: The local press as an external public governance power
Abstract:
Do national and local newspapers both impact voter turnout? This paper tackles this question by employing data from a unique dataset that collects detailed national and local newspapers, politico-institutional and socio-economic information for Italy during 1980–2007. We use a Dynamic Panel Data with Instrumental Variables methodology that allows for the consideration of potential sources of endogeneity that may affect the relation between the press and voting behavior. We strengthen this methodology by considering the industry’s entry and exit of newspapers – i.e. turbulence – as an external shock. Our analysis provides robust evidence that local newspaper readership affects both national and local turnout and improves political accountability.
Journal: Applied Economics
Pages: 6327-6344
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2153790
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2153790
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# input file: RAEC_A_2141463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Marcelo Resende
Author-X-Name-First: Marcelo
Author-X-Name-Last: Resende
Title: Heterogeneity, aggregation and long memory in lottery sales: some empirical evidence for Brazil
Abstract:
The paper investigates the prevalence of long memory for lottery sales, as previous literature suggests that aggregation of heterogeneous agents can potentially lead to a fractional differencing parameter consistent with highly persistent processes. Applications are considered for sales of 7 different lottery modalities in Brazil and also disaggregated at the level of federative units. The selected estimated models considered controls in terms of dummy variables for prize rollovers, special draws and weekends´ draws. The effects of rollovers and special draws on lottery sales are typically positive and non-negligible with an exception for the latter variable. The effect of draws that take place at weekends are mixed and not always positive. One observes long memory, for Brazil as a whole, only in the case of one modality. The evidence by federative units is mixed and indicates contrasts that suggest heterogeneities across regions and lottery modalities. At a more exploratory level, the evidence obtained with a stacked sample suggests relevant effects accruing from income inequality. on the probability of prevalence of highly persistent lottery sales, taking into account controls for regional heterogeneities. The initial evidence suggests that positional concerns may be relevant in the case of Brazil.
Journal: Applied Economics
Pages: 6223-6249
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2141463
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2141463
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Handle: RePEc:taf:applec:v:55:y:2023:i:53:p:6223-6249
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# input file: RAEC_A_2142192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jens Agerström
Author-X-Name-First: Jens
Author-X-Name-Last: Agerström
Author-Name: Magnus Carlsson
Author-X-Name-First: Magnus
Author-X-Name-Last: Carlsson
Author-Name: Asuman Erenel
Author-X-Name-First: Asuman
Author-X-Name-Last: Erenel
Title: The effect of social gender norms on parental leave uptake intentions: evidence from two survey experiments on prospective fathers and mothers
Abstract:
We investigate how social gender norms influence parental leave uptake intentions by conducting two separate survey experiments on prospective fathers (N = 877) and mothers (N = 882) in the UK. In a between-subjects design, we manipulate social gender norms by varying information on the average number of days that other fathers and mothers stay at home to take care of a child during the first year after childbirth. We find that when prospective parents (both genders) are exposed to the low staying-home-with-children norm, they plan less parental leave uptake compared to the control (no norm) group. When exposed to the high staying-home-with-children norm, men (but not women) plan more parental leave uptake compared to the control group. We discuss policy implications and suggest directions for future studies.
Journal: Applied Economics
Pages: 6277-6293
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2142192
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2142192
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# input file: RAEC_A_2142193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wen Yue
Author-X-Name-First: Wen
Author-X-Name-Last: Yue
Title: Export product quality and markup of firms: evidence from China
Abstract:
In this study, we analyse how export product quality affects the markup of firms. First, on the basis of the heterogeneous firm trade model, we clarify the internal mechanism of the effect of export product quality on the markup of firms through the channels of firm marginal production cost and product pricing. Second, using the micro data of Chinese firms from 2000 to 2007 and by estimating firm-level markup and export product quality, we construct a dynamic panel model to empirically analyze the impact of export product quality on the markup of the Chinese firms and mechanism of the impact. Results of the empirical analysis support the prediction of the theoretical model, that is, improvement of export product quality will positively affect the markup of firms by increasing their marginal cost of production and product pricing. From the product quality perspective, we provide new insights for understanding the impact of the export market on the markup of firms.
Journal: Applied Economics
Pages: 6294-6309
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2142193
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2142193
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# input file: RAEC_A_2145011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Uzma Bibi
Author-X-Name-First: Uzma
Author-X-Name-Last: Bibi
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Title: Trade-offs in South Asian MFIs: regulation and governance structure
Abstract:
This paper evaluates trade-offs and investigates the key performance determinants in different types of 468 South Asian Microfinance Institutions (MFIs) for the period 1998–2019. Three indicators of financial performance are compared against multiple dimensions of breadth and depth of outreach to evaluate the trade-off between financial and social performance of MFIs. To clarify the direction of trade-off, we run Granger-Causality tests and accordingly, we regress financial performance measures on each suggested indicator of breadth and depth of outreach . Simultaneously, we also investigate the financial performance in relation to mainly different regulatory structure and profit orientation of types of MFIs by controlling for financial ratios, country and institutional control variables. The regression results show that there is no significant trade-off between the financial and social objectives in almost all specifications rather we have significant evidence for compatibility of dual objectives both in terms of breadth and depth of outreach in some specifications. We also find capital to assets ratio and experience to be prominently positively responsible for financial sustainability while risky and costly loans and being regulated MFIs reducing the financial performance of South Asian MFIs while profit orientation does not matter once we have controlled for regulatory structure.
Journal: Applied Economics
Pages: 6310-6326
Issue: 53
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2145011
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2145011
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# input file: RAEC_A_2156473_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaofang Li
Author-X-Name-First: Xiaofang
Author-X-Name-Last: Li
Author-Name: Daye Li
Author-X-Name-First: Daye
Author-X-Name-Last: Li
Author-Name: Kefu Yi
Author-X-Name-First: Kefu
Author-X-Name-Last: Yi
Author-Name: Ming Men
Author-X-Name-First: Ming
Author-X-Name-Last: Men
Title: Salience in beta anomaly
Abstract:
This article shows that the beta anomaly in the capital asset pricing model arises when investors’ attention is drawn to salient payoffs owing to limited attention. Controlling for the salience effect renders the alphas of beta-sorted portfolios and betting-against-beta insignificant. Empirically, we find that stocks’ market beta is strongly related to salience measure, indicating that salience-demand price pressure falls predominantly on high-beta stocks. Furthermore, the low-beta anomaly occurs mainly during periods when the correlation between stocks’ salience and beta is high, indicating that the disproportionate salience-demand price pressure on high-beta stocks is an important driver of the beta anomaly.
Journal: Applied Economics
Pages: 6479-6503
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156473
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156473
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Handle: RePEc:taf:applec:v:55:y:2023:i:55:p:6479-6503
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# input file: RAEC_A_2159010_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sergio Destefanis
Author-X-Name-First: Sergio
Author-X-Name-Last: Destefanis
Author-Name: Matteo Fragetta
Author-X-Name-First: Matteo
Author-X-Name-Last: Fragetta
Author-Name: Nazzareno Ruggiero
Author-X-Name-First: Nazzareno
Author-X-Name-Last: Ruggiero
Title: Active and passive labour-market policies: the outlook from the Beveridge curve
Abstract:
Following a panel ARDL approach, we appraise the impact of various indicators of active and passive labour-market policies within the framework of the Beveridge curve across fourteen OECD countries from 1985 to 2013, controlling for other factors, both institutional (tax wedge) and structural (technological progress, globalization). We embed the role of these variables within the specification of the Beveridge curve, finding that the generosity of unemployment benefits has a detrimental impact on labour-market matching, with the duration of benefits and the strictness of the rules pertaining to the deployment of benefits taking a key role in driving this result. Among active labour-market policies, employment incentives and especially training have a favourable effect on matching. There is evidence of a virtuous interaction between active and passive policies. A significantly detrimental role emerges for the tax wedge. These results are consistent across various specifications, and structural relationships are stable throughout the 2008–2013 period.
Journal: Applied Economics
Pages: 6538-6550
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159010
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159010
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# input file: RAEC_A_2159012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Author-Name: Puneet Vatsa
Author-X-Name-First: Puneet
Author-X-Name-Last: Vatsa
Author-Name: Enoch Owusu-Sekyere
Author-X-Name-First: Enoch
Author-X-Name-Last: Owusu-Sekyere
Author-Name: Xiaoshi Zhou
Author-X-Name-First: Xiaoshi
Author-X-Name-Last: Zhou
Author-Name: Victor Owusu
Author-X-Name-First: Victor
Author-X-Name-Last: Owusu
Title: Does income diversity really stimulate household consumption expenditure diversity? Evidence from mean-based and unconditional quantile regressions
Abstract:
Although both income diversity and household consumption expenditure diversity are positively correlated with income, little is known about how the former affects the latter. This study investigates how and to what extent income diversity stimulates household consumption expenditure diversity, utilizing data collected by the China Social Survey. We estimate a standard mean-based linear regression model and an unconditional quantile regression (UQR) model to explore mean-based and quantile-specific effects, respectively. The results of the linear regression show that income diversity significantly increases household consumption expenditure diversity. The UQR estimates provide more granular insights, revealing that income diversity improves consumption expenditure diversity at the lower quantiles (5th and 25th), with the largest effect occurring at the lowest 5th quantile; for the higher quantiles, income diversity has no effect on consumption expenditure diversity. Our findings highlight that policies aimed at improving consumption expenditure diversity and the quality of life of people in China should create an economic environment that allows people to diversify their income sources. From a methodological standpoint, we show that mean-based approaches may overlook the finer details of the linkages between income and consumption and thus should be applied cautiously.
Journal: Applied Economics
Pages: 6567-6581
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159012
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159012
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# input file: RAEC_A_2156472_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaodong Zheng
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Zheng
Author-Name: Jingru Ren
Author-X-Name-First: Jingru
Author-X-Name-Last: Ren
Author-Name: Dian Chen
Author-X-Name-First: Dian
Author-X-Name-Last: Chen
Author-Name: Xiangming Fang
Author-X-Name-First: Xiangming
Author-X-Name-Last: Fang
Title: School feeding and children’s noncognitive skills: Evidence from the Nutrition Improvement Program in rural China
Abstract:
The health and education consequences of school feeding programs have been well established, however, evidence regarding such programs’ spillover effects on children’s noncognitive skills remains scarce. Using the China Education Panel Survey (CEPS), this study examines the association between the Nutrition Improvement Program (NIP), which provides free school meals to eligible rural students, and children’s Big Five noncognitive skills. The results show that the school feeding program significantly improves children’s noncognitive outcomes, especially among students who are girls, left behind by parents, non-only-child, have a local hukou, live in low-income households, and have low levels of positive personality traits. Our main findings are robust to a battery of specifications and validity tests. In addition, we further explore the possible mechanisms and find that child health, cognitive skills, peer relationship, family economic status, and parenting behaviours are the potential channels through which participating in the school feeding program positively affects children’s noncognitive development. Our findings suggest that school feeding should not only be treated as a nutrition or education scheme, but also as a transfer program that fosters children’s development beyond health and academic outcomes.
Journal: Applied Economics
Pages: 6459-6478
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156472
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156472
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# input file: RAEC_A_2159008_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Elisabetta Ottoz
Author-X-Name-First: Elisabetta
Author-X-Name-Last: Ottoz
Author-Name: Piermassimo Pavese
Author-X-Name-First: Piermassimo
Author-X-Name-Last: Pavese
Author-Name: Lisa Sella
Author-X-Name-First: Lisa
Author-X-Name-Last: Sella
Title: The effect of Movida on residential property prices: up or down?
Abstract:
Hedonic regression technique has often been used to study the effect of road, railway and airport noise on property prices. However, European cities are experiencing a particular type of noise pollution originated by night-time recreational activities mainly located in the city centres, the so-called ‘Movida’, which has not been properly investigated yet. The aim of this paper is to examine the effect of recreational noise on residential property prices. We used an original highly detailed housing transactions dataset from the City of Turin covering the period 2017 to 2018 and built an indicator of recreational noise based on the proximity of dwellings to the night recreational activities. The results obtained employing hedonic modelling show that the adverse environment for an apartment located in a ‘Movida’ district will result in a lower market value as compared to an apartment with similar characteristics, except for recreational noise. This occurs because potential buyers reduce their demand, as they discount the present value of the costs of annoyance, loss of tranquillity and health effects due to sleep deprivation.
Journal: Applied Economics
Pages: 6504-6519
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159008
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159008
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# input file: RAEC_A_2159011_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Akbar Ghasemkhani
Author-X-Name-First: Akbar
Author-X-Name-Last: Ghasemkhani
Author-Name: Saleh Ghavidel Doostkouei
Author-X-Name-First: Saleh
Author-X-Name-Last: Ghavidel Doostkouei
Author-Name: Amir Gholamabri
Author-X-Name-First: Amir
Author-X-Name-Last: Gholamabri
Author-Name: Mir Hossein Mousavi
Author-X-Name-First: Mir Hossein
Author-X-Name-Last: Mousavi
Title: The origins of comparative advantage: economic complexity and industrial inefficiency
Abstract:
In this study, we found out that the degree of complexity of the manufacturing sectors is related to their inefficiency degree and thus affects the comparative advantage. For this purpose, we used data from 4-digit ISIC manufacturing sectors from 28 countries, including 15 developed and 13 developing countries for the period, 2010 to 2019. Using the panel data method, the effect of industry complexity on the degree of inefficiency for each country has been estimated. The Data Envelopment Analysis (DEA) method has been used to estimate the inefficiency index in each industry. The result shows that the relationship between the inefficiency degree and the level of industry complexity in developed countries is hump-shaped, and in developing countries is U-shaped. The findings show that the inefficiency degree in developed countries decreases from the level of industrial complexity threshold of −0.53, while in developing countries increases from −0.19. Therefore, developing countries have a comparative advantage in industries whose level of complexity have in the range of −3 to −0.19 and developed countries in the range of −0.53 to +3. In the case of products whose complexity index is between −0.19 and −0.53, their comparative advantage is unclear.
Journal: Applied Economics
Pages: 6551-6566
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159011
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159011
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# input file: RAEC_A_2159009_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fang Wu
Author-X-Name-First: Fang
Author-X-Name-Last: Wu
Author-Name: Xibao Guo
Author-X-Name-First: Xibao
Author-X-Name-Last: Guo
Author-Name: Xia Guo
Author-X-Name-First: Xia
Author-X-Name-Last: Guo
Title: The impact of cooperative membership on family farms’ income: evidence from China
Abstract:
Family farms and agricultural cooperatives play important roles in modern agriculture in many countries. Different from smallholder farms in scale, family farms have been designated as the predominant unit of farming in China in the recent decade. However, studies on the relationship between cooperatives and family farms’ income have been less frequent. Using survey data of 769 planting family farms in China, and employing the endogenous switching regression model, we examine the impact of cooperative membership on family farms’ operating income (including total and per capita income). The empirical results show that, after controlling for the selection bias, cooperative membership exerts a positive and significant impact on family farms’ income. And the income increase of non-member family farms if they had participated in cooperatives is much higher than that of family farms who are already members of cooperatives. Moreover, family farms that are common members of cooperatives, obtaining more centralized services and engaging in grain crop farming, would benefit more from cooperative membership. Technology-related service, marketing and information are critical pathways via which cooperative membership would increase family farms’ income.
Journal: Applied Economics
Pages: 6520-6537
Issue: 55
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2159009
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2159009
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# input file: RAEC_A_2156471_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yu Hua
Author-X-Name-First: Yu
Author-X-Name-Last: Hua
Author-Name: Haiyan Zhang
Author-X-Name-First: Haiyan
Author-X-Name-Last: Zhang
Title: Internet Penetration and Income Inequality: Evidence from the Chinese Young Labor Market
Abstract:
The Internet technology has had a visible impact on the daily work and lives of people, especially the youth. This paper aims to investigate the influence of Internet technology on labour income as well as the channels through which income is affected, with a variety of empirical methods. Using the Chinese Family Panel Survey (CFPS) in 2014 and 2018, we discover that a ‘digital gap’ in Internet use is emerging. First, young labour force with higher income and education, urban identity, and working in high-skilled industry earn more from Internet use than their peers. Second, the return of operational income is higher than the return of wage income. Third, the return on long-term Internet use is higher than the return on short-term Internet use; however, the return has tended to decline, particularly among the bottom 25% income groups. Forth, the Internet affects their income through three main channels: assisting learning, improving working efficiency, and promoting information sharing. We also offer a few policy suggestions (e.g. improving the allocation of Internet resources).
Journal: Applied Economics
Pages: 6444-6458
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156471
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156471
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# input file: RAEC_A_2156469_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kaibo Gao
Author-X-Name-First: Kaibo
Author-X-Name-Last: Gao
Author-Name: Zhongjing Tian
Author-X-Name-First: Zhongjing
Author-X-Name-Last: Tian
Title: The Effect of Motherhood on Wages: are women’s wage penalties due to lack of career aspirations?
Abstract:
Mothers’ wages tend to be lower than those of equivalent childless women, and many researchers have reported on this ‘motherhood wage penalty’. We explore the relationship between pre-school children and their mothers’ wages to estimate the short-term effects of the ‘motherhood wage penalty’ and test the mechanisms of the ‘motherhood wage penalty’ in terms of changes in mothers’ mindsets. In addition, a novel instrumental variable was found. Based on data from the China Family Panel Studies, we find that children in China have a significant negative impact on the increase in mothers’ wages. The penalty is most severe for the low-income group. The reduction in mothers’ career enthusiasm after childbirth explains only 3.5% of the wage gap, suggesting that the wage penalty for mothers may come mainly from extrinsic factors. In addition, we find that grandparent care and the establishment of public childcare centres are effective in mitigating the ‘motherhood wage penalty’, and that delaying retirement may be detrimental to mothers’ wage increases.
Journal: Applied Economics
Pages: 6410-6426
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156469
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156469
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# input file: RAEC_A_2155608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Author-Name: Bassam M. AbuAl-Foul
Author-X-Name-First: Bassam M.
Author-X-Name-Last: AbuAl-Foul
Title: An evaluation of EIA gasoline price predictions
Abstract:
This study evaluates the accuracy of the US Energy Information Administration (EIA) monthly forecasts of gasoline prices for 2005–2021. Our findings indicate that the 1-, 3-, 6-, 9-, and 12-month-ahead EIA forecasts do not, on average, significantly over- or under-predict gasoline prices, and they generally outperform the random walk and the nowcast-based benchmarks in terms of both the mean squared forecast error and the predictive information content. We further show that the shorter-horizon (longer-horizon) EIA forecasts predict directional change under asymmetric (symmetric) loss. Additional results indicate that the 1-, 3-, 6-, 9-, and 12-month-ahead EIA forecast errors are all orthogonal to consumer expected change in gasoline prices, actual change in core consumer price index, consumer vehicle-buying attitudes, and consumer sentiments. However, the 1-month-ahead (1- through 12-month-ahead) EIA forecast errors fail to be orthogonal to crude oil price changes (consumer expected inflation), meaning that these indicators can potentially help improve the accuracy of the EIA forecasts of gasoline prices.
Journal: Applied Economics
Pages: 6378-6390
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2155608
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2155608
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# input file: RAEC_A_2154313_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sheng-Guo Li
Author-X-Name-First: Sheng-Guo
Author-X-Name-Last: Li
Author-Name: Xiao-Yue Xu
Author-X-Name-First: Xiao-Yue
Author-X-Name-Last: Xu
Author-Name: Qi-Hang Liu
Author-X-Name-First: Qi-Hang
Author-X-Name-Last: Liu
Author-Name: Zhi Dong
Author-X-Name-First: Zhi
Author-X-Name-Last: Dong
Author-Name: Ji-Chang Dong
Author-X-Name-First: Ji-Chang
Author-X-Name-Last: Dong
Title: Financial Development, Real Estate Investment and Economic Growth
Abstract:
In recent years, China’s economic growth has shown a continuous downward trend, but the financial industry’s added value as a percentage of GDP and the financial development level have continued to rise, and real estate investment still maintains a relatively high proportion of total fixed asset investment in society. Taking financial development as the starting point, which is measured by the balance of loans from financial institutions as a percentage of GDP, this paper selects China’s provincial panel data from 2003 to 2017, and uses the system generalized method of moments to empirically study how financial development affects real estate investment and economic growth. The results reveal that financial development pushes up the proportion of real estate investment in fixed asset investment but has a negative impact on economic growth. The increase in the proportion of real estate investment promotes economic growth and plays a masking effect on the suppression of economic growth by financial development. Further analysis shows that financial development affects the growth of the real economy by restraining the development of the secondary industry and increasing real estate investment is conducive to alleviating the restraining effect of financial development on the growth of the real economy.
Journal: Applied Economics
Pages: 6360-6377
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2154313
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2154313
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# input file: RAEC_A_2156470_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hengzhen Lu
Author-X-Name-First: Hengzhen
Author-X-Name-Last: Lu
Author-Name: Qiujin Gao
Author-X-Name-First: Qiujin
Author-X-Name-Last: Gao
Author-Name: Matthew C. Li
Author-X-Name-First: Matthew C.
Author-X-Name-Last: Li
Title: Does economic policy uncertainty outperform macroeconomic factor and financial market uncertainty in forecasting carbon emission price volatility? Evidence from China
Abstract:
This paper explores the forecasting power of some of the most informative indicators of economic uncertainty on carbon emission price volatility. We use one- and two-component GARCH-MIDAS models based on mixed frequency data and Model Confidence Set (MCS) testing with ‘rolling scheme’ forecast method to examine the forecasting performance of economic uncertainty indicators. We employ an economic policy uncertainty (EPU) indicator with China, US and global economic policy uncertainty constituents together with traditional uncertainty indicators, such as macroeconomic and financial market volatility. Our empirical findings show that generally economic policy uncertainty indicators contain more information of carbon emission price volatility than other indicators. Specifically, one-component GARCH-MIDAS model with the EPU indicator with China constituent and two-component model with EPU indicator have superior performance in forecasting carbon emission price volatility of the Guangdong pilot in China. Our study adds insights into factors that affect carbon emission price movements.
Journal: Applied Economics
Pages: 6427-6443
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2156470
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2156470
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# input file: RAEC_A_2154312_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Njato Rabehajaina
Author-X-Name-First: Njato
Author-X-Name-Last: Rabehajaina
Author-Name: Jean-Pierre Gueyie
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Gueyie
Author-Name: Komlan Sedzro
Author-X-Name-First: Komlan
Author-X-Name-Last: Sedzro
Title: Determinants of bilateral official development assistance
Abstract:
According to the World Bank 2017 statistics, the inequalities between rich and poor countries have increased despite an 80% increase in the official development assistance volume. This persisted, even under the Millennium Development Goals (MDGs) regime (2000–2015), a period during which developing countries’ needs were assumed to be at the centre of the international community’s actions. Thus, one may question the effectiveness of aid and the real motivations of donor countries. This article aims to examine the factors that determine the bilateral official development assistance (BODA) allocation by using more recent data, and with an emphasis on whether donor countries have put into place a wish from the MDGs to largely take into account the needs of recipient countries in their ODA allocation decisions. Among other results, we show that the needs of recipient countries are taken into account by only small donors (in terms of volume) in their aid decisions. The major ODA providers do not follow the trend. Thus, rowing in line with the MDGs, putting the needs of recipient countries at the centre of BODA allocation was mainly limited to small ODA donors. Donor interest was is put forward by most of the donor countries.
Journal: Applied Economics
Pages: 6345-6359
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2154312
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2154312
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# input file: RAEC_A_2155609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Arandarage Mayura Prasad Arandara
Author-X-Name-First: Arandarage Mayura Prasad
Author-X-Name-Last: Arandara
Author-Name: Shingo Takahashi
Author-X-Name-First: Shingo
Author-X-Name-Last: Takahashi
Title: Productive managers, productive branches, and the rewards. Evidence from the cooperative banks in Sri Lanka
Abstract:
Using branch-manager linked data from the Cooperative Rural Banks (CRBs) of Sri Lanka, we investigate the source of branch performance differences. Despite the significant variation in the local conditions of branches, we found that managerial talent matters significantly. Manager effects explain 35% of the raw variation in the branch profit per worker and 45% of the raw variation in the branch-level non-performing loan ratio (NPLR). Branch effects explain a larger share of the variations in branch profit per worker (69%), but explain a smaller share of variation for NPLR (41%). We did not find evidence that branch managers are rewarded for their real contributions, measured by the estimated manager effects, via salary increase. Rather, they are rewarded merely for the raw performance of their branches. However, managers are rewarded with improved branch assignments when they increase profit-per-worker. A one standard deviation improvement in manager effects would increase the probability of being assigned to the top quartile branches by 8.7%.
Journal: Applied Economics
Pages: 6391-6409
Issue: 54
Volume: 55
Year: 2023
Month: 11
X-DOI: 10.1080/00036846.2022.2155609
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2155609
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# input file: RAEC_A_2161992_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Huaigang Long
Author-X-Name-First: Huaigang
Author-X-Name-Last: Long
Author-Name: Mardy Chiah
Author-X-Name-First: Mardy
Author-X-Name-Last: Chiah
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: Composite equity issuance and the cross-section of country and industry returns
Abstract:
Behavioural finance literature argues that stock issuance contains information on equity valuation. If so, does it predict the cross-section of both country and industry stock returns? To answer this question, we investigate data from 68 markets from 1976 to 2022. We find that composite equity issuance negatively correlates with future aggregate stock returns. An equal-weighted quintile of countries (industries) with the highest issuance underperforms those with the lowest by 0.34% (0.58%) per month. Established risk factors and other anomalies cannot subsume this cross-sectional pattern. Furthermore, the effect remains robust to many considerations. This documented issuance anomaly paves the way for an exploitable international investment strategy.
Journal: Applied Economics
Pages: 6627-6645
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161992
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161992
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# input file: RAEC_A_2161993_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jing Luo
Author-X-Name-First: Jing
Author-X-Name-Last: Luo
Author-Name: YuCheng Lin
Author-X-Name-First: YuCheng
Author-X-Name-Last: Lin
Author-Name: Sijia Wang
Author-X-Name-First: Sijia
Author-X-Name-Last: Wang
Title: Intraday high-frequency pairs trading strategies for energy futures: evidence from China
Abstract:
We investigate the performance of pairs trading strategies based on Ornstein-Uhlenbeck (OU) process with jump-diffusion and regime-switching using minute-level data for five Chinese energy futures from 2 January 2020 to 30 November 2021 and compare them with traditional pairs trading strategies. Our results indicate that OU models can obtain an average return of 50.62% per annum and a Sharpe ratio of 2.63, which significantly exceed those of traditional pairs trading strategies. However, none of them could ‘win’ in every subperiod with diverse market conditions. Meanwhile, we find that introducing jump-diffusion indeed improves the performance (additional 25.37% annualized return and 1.12 Sharpe ratio). In contrast, considering more regimes does not always bring additional benefits. Robustness checks show that the superior performance of three-regime switching OU model (3RS-OUM) persists even under harsh trading conditions.
Journal: Applied Economics
Pages: 6646-6660
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161993
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161993
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# input file: RAEC_A_2165615_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Karim Mimouni
Author-X-Name-First: Karim
Author-X-Name-Last: Mimouni
Author-Name: Ahmad Shikh Ebid
Author-X-Name-First: Ahmad
Author-X-Name-Last: Shikh Ebid
Title: Can government expenditure help reconstruct the Syrian economy in the post-conflict period? evidence from the SVAR and nonlinear ARDL models
Abstract:
This paper explores the viability of the fiscal policy in the reconstruction of the Syrian economy. We use the Structural VAR estimation technique to assess the response of real GDP to shocks in government expenditures and exchange rates in the parallel market. We also control for other variables including money supply and oil prices. We find that government spending is an effective tool for economic recovery in particular under a quasi-fixed exchange rate regime. We also employ the nonlinear ARDL (NARDL) model to detect the existence of asymmetrical effects of government spending on real GDP. The NARDL results show that negative changes in government expenditure have more impact on economic growth compared to positive changes. Additionally, the NARDL model reveals that the post-conflict period was characterized by large government spending’ inefficiencies. Finally, we study three alternative government spending’ rebuilding scenarios. We document that reaching the pre-conflict GDP level is possible under two of the scenarios we investigate. Hence, our results provide strong policy implications according to which fiscal policy can, under specific exchange rate regimes, reverse the adverse effects of civil wars.
Journal: Applied Economics
Pages: 6661-6675
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165615
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165615
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# input file: RAEC_A_2161990_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Le Wen
Author-X-Name-First: Le
Author-X-Name-Last: Wen
Author-Name: Sholeh A. Maani
Author-X-Name-First: Sholeh A.
Author-X-Name-Last: Maani
Author-Name: Zhi Dong
Author-X-Name-First: Zhi
Author-X-Name-Last: Dong
Title: Educational job mismatch, job satisfaction, on-the-job training, and employee quit behaviour: a dynamic analytical approach
Abstract:
This paper extends the literature on the consequences of over-education, in particular quit outcomes. It is the first study that explicitly tests the impact of job satisfaction and on-the-job training for workers in educational mismatched jobs and on quit behaviour using a longitudinal data set. Accounting for unobserved heterogeneity and endogeneity, the dynamic analytical framework examines labour market outcomes for job-mismatched workers. We find that over-education alone, or accompanied by skill under-utilization in combination with lower job satisfaction, increases the incidences of job quitting. Opportunities for training facilitate the retention of initially job-mismatched workers. These results have implications for interpreting mismatch data, retention, and resource allocation.
Journal: Applied Economics
Pages: 6605-6626
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161990
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161990
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# input file: RAEC_A_2165616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Antonio C. David
Author-X-Name-First: Antonio C.
Author-X-Name-Last: David
Author-Name: Carlos Eduardo Goncalves
Author-X-Name-First: Carlos Eduardo
Author-X-Name-Last: Goncalves
Author-Name: Alejandro Werner
Author-X-Name-First: Alejandro
Author-X-Name-Last: Werner
Title: It is causal: revisiting the savings and investment nexus1
Abstract:
Domestic savings and investment are positively correlated across countries and through time, as first suggested by Feldstein and Horioka (1980). However, whether this long-lasting correlation implies causation is still an open question. In this paper, we use instrumental variables in a panel setting and show that domestic savings do cause investment in developing economies. In contrast, for advanced countries the statistically significant correlation found in the data seems to result from endogeneity bias. Our identification strategy relies on the idea that age structure influences savings, but not total investment directly. Time-series data patterns for the United States and the theory of Direct Technological Change lend credence to our exclusion restriction.
Journal: Applied Economics
Pages: 6676-6684
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165616
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165616
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# input file: RAEC_A_2161989_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kabir Dasgupta
Author-X-Name-First: Kabir
Author-X-Name-Last: Dasgupta
Author-Name: Alexander Plum
Author-X-Name-First: Alexander
Author-X-Name-Last: Plum
Title: Human capital formation and changes in low pay persistence
Abstract:
This study presents new empirical evidence on the role of time trends in low pay persistence. We utilize population-wide tax records to track monthly labour market trajectories of initially low-paid workers. By performing age- and qualification-specific regressions, we find that low pay persistence reduces with time. However, the magnitude is highly heterogeneous across workforce characteristics. For a qualified worker in their early 20s, the risk of staying on low-pay declines by, on average, 5–10% points after one year. For a worker in their 50s, persistence remains almost unchanged regardless of their qualification level. We conclude that policy initiatives need to be more nuanced than a simple one-size-fits-all approach by accounting for time trends in low-pay persistence.
Journal: Applied Economics
Pages: 6583-6604
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161989
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161989
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# input file: RAEC_A_2161991_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Iacopo Odoardi
Author-X-Name-First: Iacopo
Author-X-Name-Last: Odoardi
Author-Name: Dario D’Ingiullo
Author-X-Name-First: Dario
Author-X-Name-Last: D’Ingiullo
Author-Name: Davide Quaglione
Author-X-Name-First: Davide
Author-X-Name-Last: Quaglione
Title: Gender disparities between young and adult NEETs: do we need a more refined policy approach?
Abstract:
Italy has the highest rate of individuals Not in Employment, Education or Training (NEET) in Europe, and its NEET has the highest gender bias in Western Europe. A marked heterogeneity, however, accompanies the age sub-groups, and women’s conditions become systematically worse with advancing age. Using data from 2019, we investigate the association between the probability of being NEET and a set of individual and regional (socioeconomic and institutional) characteristics, examining whether and to what extent the role of these determinants varies depending on gender within two distinct age groups: young (15–24) and adult (25–34) NEETs. In general, we find clear evidence that women are at a relative disadvantage compared to men and, as age increases, both positive and negative determinants show relations that tend to weaken for men and to worsen for women. The results of our analyses also suggest that social/family obligations affect men and women differently, to the detriment of women, and that this disparity widens with age. The contrast between the position of men and women within marriage is empirically confirmed and perfectly captured by marginal effects with opposite signs. The policy implications of our analysis are discussed in the concluding section of this paper.
Journal: Applied Economics
Pages: 6685-6699
Issue: 56
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2022.2161991
File-URL: http://hdl.handle.net/10.1080/00036846.2022.2161991
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# input file: RAEC_A_2166659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yue Dou
Author-X-Name-First: Yue
Author-X-Name-Last: Dou
Author-Name: Fuzhong Chen
Author-X-Name-First: Fuzhong
Author-X-Name-Last: Chen
Author-Name: Zhaoyang Kong
Author-X-Name-First: Zhaoyang
Author-X-Name-Last: Kong
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: Re-estimating the trade openness–carbon emissions nexus: a global analysis considering nonlinear, mediation, and heterogeneous effects
Abstract:
The impact of trade openness on environment is of increasing concern to environmental practitioners, industrialists, and researchers. Unlike previous studies that only focus on the impact of trade openness on carbon dioxide (CO2) emissions, this study explores the relationship between trade openness and carbon productivity. To this end, we construct a dynamic nonlinear panel model using a panel sample of 76 countries for the period 1990–2021. Furthermore, we conduct a mediation effect analysis to examine the underlying impact mechanisms between trade openness and carbon productivity. Finally, by dividing the total sample into four subsamples, we analyse possible regional heterogeneity in trade openness and carbon productivity relationship. The empirical results show that: (1) Trade openness has a significant impact on carbon productivity, with a U-shaped relationship between the two variables. In other words, carbon productivity first declines and then rises after a certain threshold level of trade openness is reached. (2) Energy intensity and energy consumption structure are two important mediators between trade openness and carbon productivity. (3) The impact of trade openness on carbon productivity is heterogeneous across countries. Based on the main findings, we propose several policy implications to improve trade quality as well as global carbon productivity.
Journal: Applied Economics
Pages: 6793-6808
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166659
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166659
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# input file: RAEC_A_2165618_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chi-Young Choi
Author-X-Name-First: Chi-Young
Author-X-Name-Last: Choi
Title: State political uncertainty and local housing markets - Evidence from U.S. mid-term gubernatorial elections
Abstract:
Using U.S. county-level data, this paper finds a significant negative impact of state political uncertainty on local house price growth. A unit increase in state political uncertainty is associated with about 3.4% point decrease in county-level house price growth. The impact is asymmetric and varies widely across localities, with a weaker impact found in areas with a higher fraction of homeowners. The results are robust to endogeneity, sample selection, model specifications, and alternative measures of uncertainty. The main findings are further confirmed by a case study based on a difference-in-difference analysis.
Journal: Applied Economics
Pages: 6717-6738
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165618
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165618
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# input file: RAEC_A_2165620_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Léonard Moulin
Author-X-Name-First: Léonard
Author-X-Name-Last: Moulin
Title: What are the medium-term educational and labour market effects of private schooling?
Abstract:
This article examines the impact of private school attendance on a range of outcomes during adulthood. Students are followed for seventeen years after they enter the sixth grade. The effect of private schooling on educational and labour market outcomes is estimated using propensity score matching. Private schooling has a positive effect on the likelihood of obtaining the baccalauréat and a higher education qualification, as well as obtaining a higher wage, for both girls and boys. A series of robustness tests confirms these results.
Journal: Applied Economics
Pages: 6759-6775
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165620
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165620
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# input file: RAEC_A_2165619_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Teng Ma
Author-X-Name-First: Teng
Author-X-Name-Last: Ma
Author-Name: Yimeng Du
Author-X-Name-First: Yimeng
Author-X-Name-Last: Du
Author-Name: Tao Xu
Author-X-Name-First: Tao
Author-X-Name-Last: Xu
Author-Name: Jun Pang
Author-X-Name-First: Jun
Author-X-Name-Last: Pang
Title: How the thermal power sector affects carbon trading: an empirical study on China’s carbon markets
Abstract:
By using a dynamic panel data model, this study investigated how the production of thermal power affects China’s regional pilot carbon markets with a focus on carbon price, trading volume, realized volatility, and market liquidity. Our results suggest that the production of thermal power has slightly increased the trading volume, but has not affected carbon prices based on the existence of excessive CO$$_2$$ 2 allowances. Moreover, thermal power production has increased realized volatility in the pilot markets. However, this impact was reduced following the announcement of the National Emission Trading System (ETS). This demonstrates that thermal power companies in pilot carbon markets tend to trade carbon credit more actively in response to policies favouring further market liberalization, rather than passively following government instructions. Furthermore, we find that realized volatility and liquidity increased in the Hubei and Shanghai pilots following the announcement. This demonstrates that the announcement of the National ETS improved the market activity and efficiency, and pricing capacity of its host pilot markets. However, this improvement could only be observed in the short term. Therefore, the government should reallocate CO$$_2$$ 2 allowances to match its emission reduction targets and incentivize industries with high carbon intensity to participate in carbon trading.
Journal: Applied Economics
Pages: 6739-6758
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165619
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165619
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# input file: RAEC_A_2166660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jia Li
Author-X-Name-First: Jia
Author-X-Name-Last: Li
Author-Name: Taoufik Bouraoui
Author-X-Name-First: Taoufik
Author-X-Name-Last: Bouraoui
Author-Name: Magdalena Radulescu
Author-X-Name-First: Magdalena
Author-X-Name-Last: Radulescu
Title: On the drivers of sustainable development: empirical evidence from developed and emerging markets
Abstract:
Why do firms’ sustainability disclosure performance differ so much between firms and across countries? Which factors drive firm’s awareness of sustainable development and do these factors have different driving mechanisms between developed and emerging countries? We answer these questions using a panel data regression model on around 1500 companies from 20 developed countries and 20 emerging countries during the period from 2009 to 2019. Our empirical results reveal that both firm-level and country-level variables are important predictors for sustainable disclosure performance. In developed countries, most firm-level indicators show a significant and positive effect on Environmental, Social and Governance (ESG) disclosure scores. In emerging countries, only operating performance, measured by total revenues, and firm size have a positive impact on ESG disclosure, while high level of profitability is associated with low ESG score. On the country level, we find a significant relationship between all drivers and ESG scores in developed countries. However, in emerging markets, only economic, cultural (excepting uncertainty avoidance index) and technological factors are shown to impact significantly sustainable development.
Journal: Applied Economics
Pages: 6809-6821
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166660
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166660
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# input file: RAEC_A_2165621_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mario Lackner
Author-X-Name-First: Mario
Author-X-Name-Last: Lackner
Title: Effort and risk-taking in tournaments with superstars – evidence for teams
Abstract:
Competition is often observed between heterogenous teams. Heterogeneity in ability is critical for the effectiveness of different tournament designs. I investigate how the presence of a dominant competitor or superstar does affect the decisions of other competitors in team contests. In particular, I use novel data from top-level professional basketball to investigate the consequences of superstar presence on effort and risk-taking of teams in rank-order contests. To identify the effect, I exploit exogenous variation in superstar dominance, induced by an institutional reform. My results demonstrate that the effect of competing with a superstar on effort does depend on the level of superstar dominance and the number of dominant teams in the contest. For tournaments with a single and clearly dominant superstar team, I find a sizable and significant negative effect of superstar presence on effort of other competing teams. Reduced dominance by the superstar, however, is found to result in a positive peer effect. I also present results for a robust association between competing with a superstar and risk-taking, indicating that a dominant superstar decreases risk-taking. Presence of a weak superstar, however, is estimated to increase risk-taking among other competitors.
Journal: Applied Economics
Pages: 6776-6792
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165621
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165621
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# input file: RAEC_A_2165617_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peter Zweifel
Author-X-Name-First: Peter
Author-X-Name-Last: Zweifel
Author-Name: Philippe K. Widmer
Author-X-Name-First: Philippe K.
Author-X-Name-Last: Widmer
Title: Accounting for heterogeneity in the measurement of hospital performance
Abstract:
As the Corona pandemic of 2020 has shown, disposing of sufficient hospital capacity is of great importance. Ideally, this capacity should be provided by efficient units, calling for measurement of their performance. However, the standard cost frontier model yields biased efficiency scores because it ignores (often unobserved) heterogeneity between hospitals. In this paper, efficiency scores are derived from a cost function with both random intercept and random slope parameters which overcomes the problem of unobserved heterogeneity in stochastic frontier analysis. Based on an unbalanced panel covering the years 2004 to 2007 and comprising at least 100 Swiss hospitals per year, Bayesian inference points to significant heterogeneity suggesting rejection of the standard cost frontier model. When unobserved heterogeneity is fully accounted for, average estimated inefficiency decreases to 5%, below the 14% (21%, respectively) value reported for a number of European and Middle-Eastern countries (Hollingsworth, 2008; Alawi et al. 2019). Moreover, hospitals rated below 85% efficiency according to the standard model gain up to 12% points. They can provide much needed capacity that otherwise would be discarded on the grounds that they are not sufficiently efficient providers.
Journal: Applied Economics
Pages: 6701-6716
Issue: 57
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2165617
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2165617
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Handle: RePEc:taf:applec:v:55:y:2023:i:57:p:6701-6716
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# input file: RAEC_A_2166662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qiyao Zhou
Author-X-Name-First: Qiyao
Author-X-Name-Last: Zhou
Author-Name: Debao Hu
Author-X-Name-First: Debao
Author-X-Name-Last: Hu
Author-Name: Keren Shi
Author-X-Name-First: Keren
Author-X-Name-Last: Shi
Title: The persistent effects of early career contracts: evidence from NBA drafts
Abstract:
This article examines the persistent effects of early career contracts using the National Basketball Association (NBA)’s draft data over the period 1995–2019. We use regression discontinuity design (RDD) to compare the differences in career outcomes between the first-round picked rookies and the second-round picked ones. The empirical results suggest that draft rounds per se significantly influence a player’s career outcome in almost all indicators (i.e. career earnings, total points scored, and total years played). Explorations of the mechanisms suggest that differences in rookie contract length and sunk costs influence teams’ human capital investment in rookies.
Journal: Applied Economics
Pages: 6876-6891
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166662
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166662
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Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6876-6891
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# input file: RAEC_A_2266604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuhang Mao
Author-X-Name-First: Yuhang
Author-X-Name-Last: Mao
Author-Name: Meng Niu
Author-X-Name-First: Meng
Author-X-Name-Last: Niu
Author-Name: Yabin Zhang
Author-X-Name-First: Yabin
Author-X-Name-Last: Zhang
Author-Name: Zhenguo Wang
Author-X-Name-First: Zhenguo
Author-X-Name-Last: Wang
Title: How does the digital economy affect value-added in China? Dual perspectives from digital demand and supply
Abstract:
The Digital Economy (DE) has dramatically changed our lives and economies. However, few have systematically quantified the economic impact of DE. To this end, we propose a systematic input-output framework to analyse the economic impact of DE. We detangle the intertwined relations between digital sectors and upstream and downstream sectors by evaluating the embodied and enabled value-added. Then we use the structural path analysis to find the core transmission paths between the digital and upstream and downstream sectors. Further, we use the structural decomposition analysis to determine the main drivers of DE affecting the embodied and enabled value-added. Our findings are as follows. First, the digital sectors have significantly driven the value-added of upstream and downstream sectors. Second, there is heterogeneity in the roles of the digital device and service sectors. Third, on the value-added path, The Other services sector is the non-digital sector, which is closely related to the digital sectors. Finally, the expanding digital demand and primary input are the major driving forces for China’s rapid digital-embodied and digital-enabled value-added growth.
Journal: Applied Economics
Pages: 6832-6854
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2266604
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2266604
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# input file: RAEC_A_2166664_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thomas Blavet
Author-X-Name-First: Thomas
Author-X-Name-Last: Blavet
Author-Name: Pierre Ouellette
Author-X-Name-First: Pierre
Author-X-Name-Last: Ouellette
Author-Name: Stéphane Vigeant
Author-X-Name-First: Stéphane
Author-X-Name-Last: Vigeant
Title: α-returns to scale with quasi-fixed inputs: an application to Québec hospitals
Abstract:
This paper focuses on the determination and estimation of the optimal size of hospitals. To determine the optimal size of a production unit, we use the measurement of returns to scale (RTS) at the decision-making unit level. When the RTS are constant, the unit is deemed of optimal size as the average total cost is at its minimum. As we deal with public service in a non-market environment, we have to take into account the fact that hospitals may not operate efficiently. To estimate the required production frontier we adapt the α-returns to scale method (a DEA type algorithm compatible with non-convexity of the production set) to include quasi-fixed factors. This methodology is applied to Québec hospitals at different points in time in order to capture the effect of the restructuring of the public health system over the last three decades. We conclude that by relying more on larger institution the scale efficiency of the public system has increased. However, in spite of the large reduction in the number of small hospitals and their replacement by very large structures, the movement may have gone too far, as most of the large institutions tend to exhibits decreasing returns to scale.
Journal: Applied Economics
Pages: 6922-6938
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166664
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166664
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# input file: RAEC_A_2211334_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kyungsoo Oh
Author-X-Name-First: Kyungsoo
Author-X-Name-Last: Oh
Title: Energy use in U.S. manufacturing and increasing imports from China: Empirical analysis
Abstract:
This study numerically estimates the effect of increased Chinese import penetration using U.S. manufacturing-level panel data from 1997 to 2005. It also decomposes this effect into factor substitution effects and output scale effects. Since import penetration rates may have endogeneity problems, we use China’s share of world trade to quantify Chinese import penetration. The results show that increased imports from China increase fuel and electricity consumption: the marginal effect of Chinese import penetration is small but statistically significant, ranging from about 0.05% to 0.08%. Interestingly, the decomposition reveals opposite effects across energy types: the factor substitution effect for fuel is positive, while the factor substitution effect for electricity is negative, despite the impact of Chinese imports. The effects on fuel and electricity are both significantly positive, while the effect on electricity is negative. These results suggest the need for different policy responses across industries to the effects of trade, with implications for the environmental problems caused by energy use.
Journal: Applied Economics
Pages: 6823-6831
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2211334
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211334
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# input file: RAEC_A_2269615_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Danyu Liu
Author-X-Name-First: Danyu
Author-X-Name-Last: Liu
Author-Name: Yongkang Lin
Author-X-Name-First: Yongkang
Author-X-Name-Last: Lin
Author-Name: Shijiao Fang
Author-X-Name-First: Shijiao
Author-X-Name-Last: Fang
Title: Does green innovation reduce carbon emission intensity of Chinese cities? Analysis based on GS2SLS
Abstract:
In the 14th Five-Year Plan, China’s economic and social development aims to focus on carbon peaking and carbon neutrality. On the basis of panel data of 284 prefecture-level cities in China from 2011 to 2020, this study uses the generalized spatial two-stage least squares method (GS2SLS) to analyse empirically the relationship and mechanism between the green innovation and carbon emission intensity(CEI) of Chinese cities. The research reveals several findings. (1) The CEI of Chinese cities has a significant spatial spillover effect. Moreover, green innovation has reduced the CEI of Chinese cities. The robustness and endogenous tests further verified this conclusion. (2) The carbon emission reduction effect of green innovation shows significant regional heterogeneity, which is more significant in eastern regions and cities with high innovation capabilities. In contrast, this outcome is not significant in regions with weaker innovation capabilities and in the central and western regions. (3) Green innovation mainly reduces the CEI of Chinese cities by promoting the upgrading of industrial structures. A higher level of digital economy development will also have a significantly positive catalytic effect on green innovation to inhibit CEI.
Journal: Applied Economics
Pages: 6892-6904
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2269615
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2269615
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Handle: RePEc:taf:applec:v:55:y:2023:i:58:p:6892-6904
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# input file: RAEC_A_2166663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jin Chen
Author-X-Name-First: Jin
Author-X-Name-Last: Chen
Author-Name: Yue Chen
Author-X-Name-First: Yue
Author-X-Name-Last: Chen
Author-Name: Qinen Gu
Author-X-Name-First: Qinen
Author-X-Name-Last: Gu
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Title: Network evolution underneath the volatility spillover in traditional and clean energy markets
Abstract:
When facing volatility spillovers in energy markets, all players require risk mitigation strategies to insulate themselves from the same. To prevent energy markets from being strongly crashed by volatility spillovers, which even trigger financial crises, in this paper, we use network analysis as an aid to identify spillovers among the main nine energy markets. Specifically, we first measure the volatility spillovers among the main energy markets through a BEKK model. Based on this, influential markets are identified by using network analysis. The coal, wind and water energy markets should be paid close attention as they occupy vital roles in the volatility spillover network. Even though clean energy markets contribute more in terms of market stability, traditional energy markets are still important to ensure energy supply when experiencing extreme crashes caused by COVID-19. In this paper, we make the contributions to analysing volatility spillovers in multiple energy markets and identifying crucial energy markets in volatility spillover networks, then provide more market information that helps the government and policymakers effectively manage systemic risks caused by volatility spillovers. The effective risk management of crucial energy markets enhances economic recovery and stability, especially in the post-COVID-19 era.
Journal: Applied Economics
Pages: 6905-6921
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166663
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166663
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# input file: RAEC_A_2166661_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wen Ding
Author-X-Name-First: Wen
Author-X-Name-Last: Ding
Author-Name: Wei Jin
Author-X-Name-First: Wei
Author-X-Name-Last: Jin
Title: Production operations, financing and information asymmetry in a supply chain with a random yield
Abstract:
This paper studies bank loan and advance payment in a random yield supply chain, consisting of one core manufacturer and one capital-constrained supplier who possesses private information on the supply state. With an information advantage, the supplier has a motive to hide his actual capital requirements to obtain more funds and shift to other risky projects. We focus on the credit contract design, which helps effectively prevent the supplier’s excess debt motive. We characterize the supplier’s best response, the optimal contract menus and all participators’ profits under information symmetry and asymmetry, respectively. By designing the credit contract, creditors can effectively prevent funds from flowing out of the supply chain in asymmetric cases. We then investigate the willingness of creditors to provide financing. Our findings show that the bank is always willing to provide financial support, regardless of the information state. However, the manufacturer’s willingness to provide a loan depends on the value of the supplier’s reservation profit. In addition, advance payment is preferable over bank loan for the supplier. Furthermore, we explore the value of information, illustrating that information harms the supplier but benefits creditors in most cases.
Journal: Applied Economics
Pages: 6855-6875
Issue: 58
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166661
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166661
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# input file: RAEC_A_2167925_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kassoum Ayouba
Author-X-Name-First: Kassoum
Author-X-Name-Last: Ayouba
Author-Name: Marie-Line Duboz
Author-X-Name-First: Marie-Line
Author-X-Name-Last: Duboz
Author-Name: Julie Le Gallo
Author-X-Name-First: Julie
Author-X-Name-Last: Le Gallo
Title: Assessing French departments’ spending efficiency over time
Abstract:
We analyse the way in which spending efficiency of French departments evolved from 2007 to 2019. We use the time-dependent conditional order-m approach , which allows to account for the heterogeneity among departments, characterized by contextual variables, and to evaluate the effect of these variables. The results reveal a continuous improvement in their performance (management of total expenditures) over time and show that departments have much more room for improvement in the management of investment expenditures than in the management of operating costs. Moreover, the time variable has a positive effect on performance (shape of the frontier and catch-up) for both the operating and the investment specific models.
Journal: Applied Economics
Pages: 6939-6964
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2167925
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167925
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# input file: RAEC_A_2170971_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ting Ding
Author-X-Name-First: Ting
Author-X-Name-Last: Ding
Author-Name: Yue Li
Author-X-Name-First: Yue
Author-X-Name-Last: Li
Author-Name: Wenzhong Zhu
Author-X-Name-First: Wenzhong
Author-X-Name-Last: Zhu
Title: Can Digital Financial Inclusion (DFI) effectively alleviate residents’ poverty by increasing household entrepreneurship? – an empirical study based on the China Household Finance Survey(CHFS)
Abstract:
Based on data from CHFS, this paper explores the mitigating effect of DFI development to enhance household entrepreneurship on residents’ income growth and asset poverty, and analyses whether there is significant diversity in the degree of impact between different regions and groups through a heterogeneity study. The study finds that DFI has a significant effect on poverty alleviation. In the mechanism analysis, the effect of DFI on income poverty and asset poverty alleviation through promoting household entrepreneurship is 2.97% and 9.27% respectively. In the heterogeneity, the development of DFI has a significant contribution to the alleviation of income poverty of rural residents and the alleviation of asset poverty of urban residents; among similar regions, the poverty effect alleviation effect is more pronounced for the group with higher education level. This paper enriches the research related to the promotion of entrepreneurship and thus poverty alleviation by DFI, and provides a theoretical basis and empirical reference for how to alleviate poverty by financial instruments.
Journal: Applied Economics
Pages: 6965-6977
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2170971
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170971
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# input file: RAEC_A_2208337_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhonghua Huang
Author-X-Name-First: Zhonghua
Author-X-Name-Last: Huang
Author-Name: Xuejun Du
Author-X-Name-First: Xuejun
Author-X-Name-Last: Du
Title: Land misallocation and economic performance: evidence from China
Abstract:
We study the causes and consequences of land misallocation based on matched Chinese firm-level data and land transaction data during 1998–2016. We employ a land misallocation index and identify significant land misallocation in China. We find that price distortion and political incentives are associated with land misallocation. Land misallocation has important implications for economic performance. We quantify the relationship between land misallocation and productivity and find that a one standard deviation decrease in land misallocation is associated with a 14.51% decrease in labour productivity and a 10.76% reduction in total factor productivity.
Journal: Applied Economics
Pages: 7048-7064
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2208337
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208337
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# input file: RAEC_A_2206622_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bin Liu
Author-X-Name-First: Bin
Author-X-Name-Last: Liu
Author-Name: Yuan Yuan
Author-X-Name-First: Yuan
Author-X-Name-Last: Yuan
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Author-Name: Jian Zhou
Author-X-Name-First: Jian
Author-X-Name-Last: Zhou
Title: Loan guarantees and guarantors’ accounting conservatism: evidence from China
Abstract:
Listed companies in China have provided large numbers of loan guarantees for borrowers in recent years. The loan guarantee size of A-share Main Board listed companies was about RMB 3.85 trillion at the end of 2017. On the one hand, loan guarantees help borrowers access debt financing, which promotes the development of capital markets. On the other hand, however, loan guarantees can increase the financial risks for guarantors. This study investigates the effects of loan guarantees on guarantors’ accounting conservatism. Based on a large sample of listed companies from 2007 to 2017, we find that loan guarantees have a significant positive effects on guarantors’ accounting conservatism. When firms provide loan guarantees for borrowers, they report more conservative accounting information. Moreover, the effect of loan guarantees on accounting conservatism varies by borrower. Listed companies report more conservative accounting information when they provide guarantees for non-subsidiaries rather than for subsidiaries. Among the companies providing guarantees for non-subsidiaries, the companies engage in higher levels of accounting conservatism when they guarantee the borrowing of controlling shareholders instead of the borrowing of non-controlling shareholders.
Journal: Applied Economics
Pages: 6997-7016
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206622
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206622
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Handle: RePEc:taf:applec:v:55:y:2023:i:59:p:6997-7016
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# input file: RAEC_A_2206621_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tereza Němečková
Author-X-Name-First: Tereza
Author-X-Name-Last: Němečková
Author-Name: Arshad Hayat
Author-X-Name-First: Arshad
Author-X-Name-Last: Hayat
Title: Services Trade and Institutional Quality: Evidence from Africa
Abstract:
Africa seems to operate at a different structural path of economic development than expected. Unlike the long-awaited increase in manufacturing, services are bourgeoning on the continent and so increases the services trade. Our article points attention to this new phenomenon and investigates whether this new type of African trade promises better effects on institutional quality than traditionally dominant natural resources trade, leading often to devastating effects. If proved, this could have significant policy implications. We work with panel data of 40 African countries within the period 2005–2019 and use the structural equation model and the maximum likelihood method to estimate the effects of services trade in Africa on three selected variables of institutional quality. Our results show that services trade seems to be a statistically significant and positive determinant of institutional quality in Africa. However, the effects are not equal across the investigated service types.
Journal: Applied Economics
Pages: 6978-6996
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206621
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206621
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# input file: RAEC_A_2206632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guifu Chen
Author-X-Name-First: Guifu
Author-X-Name-Last: Chen
Author-Name: Lin Zheng
Author-X-Name-First: Lin
Author-X-Name-Last: Zheng
Author-Name: Liyan Wu
Author-X-Name-First: Liyan
Author-X-Name-Last: Wu
Title: Do imports and exports exacerbate employment volatility? Evidence from Chinese A-share-listed industrial enterprises
Abstract:
To build a new development pattern in China, it is important to study the impact of import and export trade on its employment. We measured employment volatility and empirically analysed the impact of trade status and import and export intensity on the employment volatility of labour requiring different skill levels in A-share-listed industrial enterprises from 2003 to 2015. We found that firms engaging in import and export trade can significantly reduce employment volatility for both high- and low-skilled labour. Furthermore, differences were noted in the degree of impact on the two skill levels. The results indicate that an increase in export intensity does not reduce employment volatility in high-skilled labour. However, an increase in import intensity significantly reduces employment volatility in both high- and low-skilled labour. Moreover, export and import trade reduce employment volatility by reducing the volatility in firms’ output and wages and by promoting investment in research and development.
Journal: Applied Economics
Pages: 7017-7032
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206632
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206632
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# input file: RAEC_A_2206993_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Rana Mostaghel
Author-X-Name-First: Rana
Author-X-Name-Last: Mostaghel
Author-Name: Pejvak Oghazi
Author-X-Name-First: Pejvak
Author-X-Name-Last: Oghazi
Title: Local individualism culture and lower third-party guarantee loan defaults: evidence from SBA loans in the US
Abstract:
Building on the literature on individualistic culture and entrepreneurship, we use variation in a US county’s frontier experience (rugged individualism) as a proxy for local individualism to explain variation in SBA loan default rates. For every 10-year increase in frontier experience in a county (ranging from 0 to 63 years between 1790 and 1890), the hazard of default was 0.964 times lower, a small but economically meaningful effect. The effects are more salient for sole proprietors and robust to economic shocks from neighbouring shale boom counties and placebo tests. The results indicate that expanding the eligibility requirements for SBA loans to include individuals from US counties with individualistic cultures may be beneficial.
Journal: Applied Economics
Pages: 7033-7047
Issue: 59
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206993
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206993
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# input file: RAEC_A_2208858_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Filipe B. Caires
Author-X-Name-First: Filipe B.
Author-X-Name-Last: Caires
Author-Name: Hugo Reis
Author-X-Name-First: Hugo
Author-X-Name-Last: Reis
Author-Name: Paulo M. M. Rodrigues
Author-X-Name-First: Paulo M. M.
Author-X-Name-Last: Rodrigues
Title: Survival of the fittest: tourism exposure and firm survival
Abstract:
In this article, a discrete-time hazard model to study firm survival in the Portuguese Tourism sector is estimated. This sector has experienced a remarkable performance over the last decades. Results show that when compared to other sectors, tourism firms are more likely to exit: (i) if they are young (less than 10 years of existence); and (ii) if they belong to the group of worse performers (i.e. belong to the lower tail of the firm distribution). Within tourism related sectors, firms with highest tourism exposure, such as travel agencies and hotels are always among the best performers in terms of survival. Moreover, despite of Tourism being one of the most volatile sectors in periods of high uncertainty, results show a higher survival resilience among established tourism associated firms.
Journal: Applied Economics
Pages: 7150-7177
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2208858
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208858
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# input file: RAEC_A_2177593_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jung-Hee Noh
Author-X-Name-First: Jung-Hee
Author-X-Name-Last: Noh
Author-Name: Heejin Park
Author-X-Name-First: Heejin
Author-X-Name-Last: Park
Author-Name: Eomcheol Tae
Author-X-Name-First: Eomcheol
Author-X-Name-Last: Tae
Title: Reliability of interim performance in private equity funds
Abstract:
We compared the interim and final realized internal rate of return for liquidated buyout funds (238) and venture capital funds (233) in the U.S. from 1985 to 2019. The results revealed that buyout funds’ interim performance tends to be underestimated, while that of venture capital funds can be underestimated or overestimated, depending on the period and associated global events. Further, we found that private equity funds’ interim performance is affected by fund performance, investment stage, and stock market performance. These results were robust to other performance measures. Our findings will assist private equity investors, policy makers, and regulators to better evaluate interim performance reliability based on fair value estimates.
Journal: Applied Economics
Pages: 7065-7078
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2177593
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177593
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# input file: RAEC_A_2203896_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shanxin Zhou
Author-X-Name-First: Shanxin
Author-X-Name-Last: Zhou
Author-Name: Yanzhen Wang
Author-X-Name-First: Yanzhen
Author-X-Name-Last: Wang
Author-Name: Peng Luo
Author-X-Name-First: Peng
Author-X-Name-Last: Luo
Title: Does the Belt and Road Initiative (BRI) improve environmental quality of BRI countries? Evidence from a quasi - natural experiment
Abstract:
Based on the panel data of 91 countries from 2009 to 2019, we apply difference-in-difference (DID) method and decoupling analysis to examine the effects on environmental quality and economic growth from a dual perspective. This study found that: (1) the Belt and Road Initiative improves the environmental quality of BRI countries. (2) The initiative has more significantly improved environment of the carbon peaking achieved countries, non-tropical regions rather than their counterparts; It has a beneficial effect in both landlocked and coastal countries. No matter the countries are industrialized or not, participating in China’s high-speed rail projects or not, their environments have been improved. But the improvement is more pronounced for industrialized countries and countries not involved in China’s high-speed rail projects. Meanwhile, the more complete citizens’ voice and accountability, and the higher financial expenses, the more significant improvement there is for them. (3) The initiative can improve environment through investment, employment structure and clean energy. (4) The initiative also significantly boosts the economic growth of BRI countries. Furthermore, decoupling relationship between Gross Domestic Product (GDP) growth and carbon emission levels shows that the number of BRI countries in strong decoupling state gradually decreases in 2015–2017, while increasing in 2018–2019.
Journal: Applied Economics
Pages: 7094-7110
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2203896
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203896
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# input file: RAEC_A_2206105_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Si Wang
Author-X-Name-First: Si
Author-X-Name-Last: Wang
Author-Name: Chenggang Wang
Author-X-Name-First: Chenggang
Author-X-Name-Last: Wang
Author-Name: Huixia Wang
Author-X-Name-First: Huixia
Author-X-Name-Last: Wang
Title: Air pollution impacts on health care expenditure in China: evidence and mechanisms
Abstract:
This paper studies the causal effects of air pollution on individual-level health care expenditure in China. We employ a nationally-representative panel dataset of the China Health and Nutrition Survey from 1991 to 2015 to estimate the impacts of air pollution on various types of health care expenditures. Using thermal inversions as an instrumental variable for air pollution, we fnd that exposure to air pollution in the past year (12 months) leads to an increase in total health care expenditure and health care utilization. In particular, with a 1 µg/m3 increase in average PM2.5 concentrations, total health care spending would rise by 5.1% and the probability of health care utilization would rise by 0.98% point. The increases are mainly driven by changes in hospital care and preventive care costs. Our mechanism evidence suggests that air pollution might affect health care expenditure by increasing weight and the probability of getting sick while reducing sleep time and the chances of walking to work.
Journal: Applied Economics
Pages: 7111-7126
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206105
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206105
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# input file: RAEC_A_2186354_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongmei Shan
Author-X-Name-First: Hongmei
Author-X-Name-Last: Shan
Author-Name: Dongfang Bai
Author-X-Name-First: Dongfang
Author-X-Name-Last: Bai
Author-Name: Xinmeng Fan
Author-X-Name-First: Xinmeng
Author-X-Name-Last: Fan
Author-Name: Jing Shi
Author-X-Name-First: Jing
Author-X-Name-Last: Shi
Author-Name: Ying Li
Author-X-Name-First: Ying
Author-X-Name-Last: Li
Author-Name: Shuhan Yang
Author-X-Name-First: Shuhan
Author-X-Name-Last: Yang
Title: Enabling roles of integration and resilience for sustainable supply Chain performance: an empirical study on China’s E-commerce platforms
Abstract:
With the rapid expansion of platform-oriented business models, the sustainability of e-commerce platforms which integrate and match the upstream supplies and downstream demands has become increasingly important. This paper studies the enabling roles of integration and resilience on sustainable supply chain performance (SSCP) of e-commerce platforms in China. A comprehensive survey for supply chain professionals from various e-commerce platforms is conducted, and 227 valid responses are obtained. Based on the structural equation modelling (SEM) approach, the findings suggest that: (1) supplier integration (SI), internal integration (II) and customer integration (CI) all actively promote supply chain resilience (SCR); (2) supplier integration (SI) and internal integration (II) directly promote SSCP, and customer integration (CI) hardly directly affect SSCP. However, II mediates the relationship between SI, CI and SSCP, and the positive role of CI on SSCP can be achieved through the mediating effect of II; (3) SCR directly promotes SSCP, while it also mediates the association among SSCI and SSCP. The results provide insights on how to differentiate the impacts of SI, CI, II and the role of SCR on SSCP.
Journal: Applied Economics
Pages: 7079-7093
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2186354
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186354
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# input file: RAEC_A_2166665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: JaeYeon Sim
Author-X-Name-First: JaeYeon
Author-X-Name-Last: Sim
Author-Name: Kyungmyung Jang
Author-X-Name-First: Kyungmyung
Author-X-Name-Last: Jang
Title: Blockchain innovation and firm’s financial performance: patent analysis based on firm-level information
Abstract:
This research makes an initial attempt to analyse the effects of blockchain patents on a firm’s financial performance. Blockchain technology has received increased attention since bitcoin prices skyrocketed in 2016, and applications for blockchain patents rapidly increased thereafter. Prior studies have documented that blockchain innovation could add economic value to firms, but without robust empirical analyses. Therefore, this study provides the first empirical approach to determine the effect of blockchain patents on a firm’s financial performance. We find that a firm’s blockchain patents are positively associated with firm value and firm performance. Moreover, the association between a firm’s blockchain patents and firm value or performance is more pronounced in markets with higher competition. This study provides theoretical and practical implications. The empirical results of this study lend credence to the argument that blockchain patent contributes to real value creation. We also add to blockchain literature and extend the literature discussing environmental uncertainty. Moreover, this study suggests useful insights for firms that consider developing blockchain patents and implies the signalling effect of blockchain patent in the capital market.
Journal: Applied Economics
Pages: 7178-7193
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2166665
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166665
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# input file: RAEC_A_2206106_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thi Thuy Anh Vo
Author-X-Name-First: Thi Thuy Anh
Author-X-Name-Last: Vo
Author-Name: Thi Nam Thanh Nguyen
Author-X-Name-First: Thi Nam Thanh
Author-X-Name-Last: Nguyen
Author-Name: Darren Henry
Author-X-Name-First: Darren
Author-X-Name-Last: Henry
Author-Name: Manh Toan Nguyen
Author-X-Name-First: Manh
Author-X-Name-Last: Toan Nguyen
Author-Name: Nathan Lael Joseph
Author-X-Name-First: Nathan Lael
Author-X-Name-Last: Joseph
Title: Does female leadership matter in firm risk-taking and performance? Evidence from gender equality reforms in an emerging market
Abstract:
Our article examines the impact of board gender diversity and female leadership on firm risk-taking and firm performance in Vietnam under the implementation of the National Strategy on Gender Equality. We find that female CEOs are associated with lower firm risk-taking and an increase in firm accounting returns is attributed to a transition from male to female CEOs. Further, board gender diversity is independently identified to lower firm risk-taking and female leadership (i.e. female CEOs and chairwomen) generates higher accounting profit (measured by ROA) for their businesses under this reform agenda.
Journal: Applied Economics
Pages: 7127-7149
Issue: 60
Volume: 55
Year: 2023
Month: 12
X-DOI: 10.1080/00036846.2023.2206106
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206106
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# input file: RAEC_A_2166668_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinyuan Ren
Author-X-Name-First: Xinyuan
Author-X-Name-Last: Ren
Author-Name: Zhixin Liu
Author-X-Name-First: Zhixin
Author-X-Name-Last: Liu
Author-Name: Hao Jin
Author-X-Name-First: Hao
Author-X-Name-Last: Jin
Title: Fiscal consolidation in China: a dynamic computable general equilibrium analysis
Abstract:
Inflation and overcapacity caused by fiscal expansion have begun to plague China’s economy. The surge in public debt caused by the perennial high deficit rate has led to accumulated debt risk. The lessons of the European debt crisis have forced China to re-examine its debt sustainability. A larger and more systematic fiscal consolidation is urgent. Based on China’s multiple fiscal accounts, this paper constructs a dynamic computable general equilibrium (CGE) model suitable for China’s scenario. By simulation, we evaluated the economic effects of revenue-based and spending-based fiscal consolidation and mixed consolidation and drew the following conclusions: (1) The success of fiscal consolidation requires paying a certain economic price. The industrial sectors closely related to the government bear more pressure from consolidation, which makes spending-based consolidation measures more advantageous in terms of cost because of their lower negative externalities. (2) China’s social security system has mitigated the effect on households during periods of fiscal consolidation, but the social insurance fund bears greater losses. (3) The mixed strategy of combining revenue and spending balance the contradiction between economic development and industrial structure in consolidation. While protecting the industrial structure, this strategy can complete the consolidation goal at a small economic cost.
Journal: Applied Economics
Pages: 59-80
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166668
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166668
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# input file: RAEC_A_2166666_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Michael Benjamin Goodwin
Author-X-Name-First: Michael Benjamin
Author-X-Name-Last: Goodwin
Author-Name: Fidel Gonzalez
Author-X-Name-First: Fidel
Author-X-Name-Last: Gonzalez
Author-Name: Matías Fontenla
Author-X-Name-First: Matías
Author-X-Name-Last: Fontenla
Title: The impact of daylight saving time in Mexico
Abstract:
We analyse the effect of Daylight Saving Time (DST) on automobile, acute myocardial infarctions (AMI) and crime-related fatalities in Mexico from 1998 to 2018. We rely on a regression discontinuity approach to obtain the causal impact of DST on these three causes of mortality. We find an increase in automobile fatalities of 13% −14% during the fall and spring transitions. Automobile fatalities increase 27% in urban areas during the fall transition and 18% in rural areas for spring. Crime-related fatalities increase 16% for the whole country, 13% in urban areas and 16% in rural areas in the fall transition and 2% in rural areas in the spring transition. The only impact on AMI fatalities that we find is a small increase in urban areas during the spring transition. In general, our results estimate an increase of about 100 more deaths per year due to DST, which translates into a monetary cost of about $22 million U.S. dollars per year.
Journal: Applied Economics
Pages: 22-32
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166666
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166666
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Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:22-32
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# input file: RAEC_A_2166667_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Daniela Balutel
Author-X-Name-First: Daniela
Author-X-Name-Last: Balutel
Author-Name: Marie-Hélène Felt
Author-X-Name-First: Marie-Hélène
Author-X-Name-Last: Felt
Author-Name: Gradon Nicholls
Author-X-Name-First: Gradon
Author-X-Name-Last: Nicholls
Author-Name: Marcel-Cristian Voia
Author-X-Name-First: Marcel-Cristian
Author-X-Name-Last: Voia
Title: Bitcoin awareness, ownership and use: 2016–20
Abstract:
Since 2016, the Bank of Canada has conducted annual surveys to monitor awareness, adoption and usage of Bitcoin and other cryptocurrencies. This report incorporates results from the 2019 Bitcoin Omnibus Survey and the November 2020 Cash Alternative Survey. We find that between 2018 and 2020, the level of Bitcoin awareness and ownership among Canadians remained stable: nearly 90% of the population were aware of Bitcoin, while only 5% owned it. We find that about half of Bitcoin owners stated they usually obtained their bitcoins through mobile or web exchanges, while one-fifth used mining. Bitcoin owners were susceptible to certain risks, as evidenced by the fact that about half of current and past owners stated they had been affected by events such as price crashes, losing access to funds, scams or data breaches. The most commonly cited reasons for owning Bitcoin were related to its use for investment or based on interest in the technology. Bitcoin owners displayed greater knowledge about the Bitcoin network than nonowners, yet they scored lower on questions testing financial literacy.
Journal: Applied Economics
Pages: 33-58
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166667
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166667
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# input file: RAEC_A_2166673_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jungwon Yeo
Author-X-Name-First: Jungwon
Author-X-Name-Last: Yeo
Title: An empirical analysis of shopping basket similarities across consumers
Abstract:
What makes shopping baskets similar or different across consumers and how much of shopping basket similarities is explained by similarities in observable characteristics, especially when a typical basket includes a few hundred products as a result of the consumer’s purchase decisions over tens of thousands of products? I attempt to answer these questions by expressing the entirety of households’ baskets as a vector of expenditure shares on various grocery products and computing pairwise cosine similarities. I find households’ shopping baskets vary greatly, with similarities in the demographic profiles and where they shop explaining only about 13%-16% of their similarities. The similarity in where households shop has the largest explanatory power, orders of magnitude larger than similarities in demographic profiles such as income and race. It underlines the importance of similarities in the products offered to households in explaining similarities in the products they ultimately purchase.
Journal: Applied Economics
Pages: 98-116
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166673
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166673
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Handle: RePEc:taf:applec:v:56:y:2024:i:1:p:98-116
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# input file: RAEC_A_2273236_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pengfei Chu
Author-X-Name-First: Pengfei
Author-X-Name-Last: Chu
Author-Name: Guanxia Xie
Author-X-Name-First: Guanxia
Author-X-Name-Last: Xie
Author-Name: Yuxia Zhang
Author-X-Name-First: Yuxia
Author-X-Name-Last: Zhang
Title: Anti-corruption publicity and internal migrants in China
Abstract:
This study uses the conditional logit model to explore the impact of anti-corruption publicity on the probability of choosing a specific city among internal migrants in China. By leveraging China’s Corruption Investigations Dataset and China Migrants Dynamic Survey, we find that anti-corruption publicity significantly decreases the probability of migrants choosing the city. The effects are driven by the mechanism whereby anti-corruption publicity increases the individuals’ perceptions of corruption and reduces their trust in local government officials. The negative effects remain after the migrants move to the city. Exposure to anti-corruption publicity is associated with decreased settlement intention and social health insurance participation. Our findings strongly indicate the necessity for the government to reconsider its communication strategies concerning anti-corruption efforts.
Journal: Applied Economics
Pages: 117-131
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2273236
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2273236
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# input file: RAEC_A_2166669_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Takahiro Ishii
Author-X-Name-First: Takahiro
Author-X-Name-Last: Ishii
Title: Technology sharing incentives for monopolistic firms
Abstract:
The present study theoretically examines the effects of free technology sharing by a monopolistic final-goods firm with other final-goods firms. I consider two cases: first, where there exists one final-goods firm in the final-goods market and second, where there exist two final-goods firms in the final-goods market. Given the free entry of firms into the differentiated intermediate-goods market, the results show that when another firm enters the final-goods market and transforms it into a two-firm oligopoly, cost efficiency improves because of an increase in the number of intermediate-goods firms. Furthermore, there is a possibility that the incumbent firm’s profits increase not only for a two-firm oligopoly, but also for an oligopoly with three or more firms. Thus, this study concludes that free technology sharing can improve incumbent firms’ profits. When the impact of an increased number of firms entering the intermediate-goods sector on the final good’s unit cost is high, free technology sharing benefits incumbent firms’ profits. While some prior studies show the potential for firms to increase their profits through licencing and the provision of technology, this study considers that technology is shared free of charge in an economy where the number of differentiated intermediate-goods firms is endogenously determined.
Journal: Applied Economics
Pages: 81-97
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166669
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166669
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# input file: RAEC_A_2267821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jayadevan CM
Author-X-Name-First: Jayadevan
Author-X-Name-Last: CM
Author-Name: Nam Trung Hoang
Author-X-Name-First: Nam Trung
Author-X-Name-Last: Hoang
Author-Name: Subba Reddy Yarram
Author-X-Name-First: Subba Reddy
Author-X-Name-Last: Yarram
Title: The transition from middle-income trap: role of innovation and economic globalisation
Abstract:
The primary objective of this paper is to examine the impact of innovation and economic globalization on economic growth and the transition from the middle-income trap. The study analyses the impact of innovation and economic globalization on economic growth using the Bayesian model averaging (BMA) and the generalized method of moments (GMM). For the first time, this paper employs Cox regressions to estimate the transition speed from the middle-income trap. With the help of the extended Cox regression analysis, the study shows that mean years of education, life-insurance and non-life insurance premiums significantly increased the transition speed to high-income and thus reduced the transition duration. The important innovation variables like labour productivity, internet usage and scientific journal articles count also increased the transition speed and reduced the transition duration. The time-dependent covariates of trade openness, foreign direct investment, high-technology exports, health spending, urbanization, and life insurance premiums also increased the transition speed and thus reduced the transition duration. The research indicates that breaking free from the middle-income trap may not require a surge in patent numbers. The present paper provides some directions to achieve better economic growth and escape the middle-income trap.
Journal: Applied Economics
Pages: 1-21
Issue: 1
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2267821
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2267821
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# input file: RAEC_A_2166671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammadu Theseem Musthafa
Author-X-Name-First: Muhammadu Theseem
Author-X-Name-Last: Musthafa
Author-Name: Thanh Le
Author-X-Name-First: Thanh
Author-X-Name-Last: Le
Author-Name: Sandy Suardi
Author-X-Name-First: Sandy
Author-X-Name-Last: Suardi
Title: Monetary policy transmission in Sri Lanka
Abstract:
Sri Lanka’s monetary policy has evolved differently during and after a three-decade-long ethnic conflict. This paper empirically investigates effects of monetary policy shocks on Sri Lankan economy with particular focus on the strength of credit and exchange rate channels using a VAR model for 2003–2019 period. We find that: (i) monetary policy shocks have a significant and persistent impact on key macroeconomic variables even though several puzzling results emerge; (ii) the effects of monetary policy shocks are significant and more persistent in the post-conflict period than in the conflict period; (iii) a tight monetary policy effectively contains inflation in the post-conflict period; and (iv) interest rate and exchange rate channels play a dominant role while the credit channel responds with some lags in the post-conflict period.
Journal: Applied Economics
Pages: 151-168
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166671
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166671
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Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:151-168
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# input file: RAEC_A_2275222_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qin Xiao
Author-X-Name-First: Qin
Author-X-Name-Last: Xiao
Author-Name: Ye Deng
Author-X-Name-First: Ye
Author-X-Name-Last: Deng
Author-Name: Chunping Zhong
Author-X-Name-First: Chunping
Author-X-Name-Last: Zhong
Author-Name: Mengjiao Wang
Author-X-Name-First: Mengjiao
Author-X-Name-Last: Wang
Author-Name: Yuechuan Zhao
Author-X-Name-First: Yuechuan
Author-X-Name-Last: Zhao
Title: Direct or indirect subsidies? Optimal childcare subsidy and application to China
Abstract:
This paper examines the optimal design of childcare subsidies and how subsidies are implemented. We combine the optimal subsidy model with the situation in China and construct the optimal childcare subsidy model using families as units. We discuss the selection patterns of direct and indirect subsidies and prove the applicable ranges and selection thresholds for different subsidy types. Based on the CFPS database in China, we simulate the amount of childcare subsidies for families with different levels of market productivity and calculate the optimal amount of subsidies for them. The results show that direct subsidies should be provided to families whose wages are lower than the market price of childcare. Indirect subsidies should be provided to families whose wages are above the market price for childcare. Finally, the optimal child-rearing subsidy curve is derived, and the easily identifiable macro optimal subsidy curve is designed for implementation.
Journal: Applied Economics
Pages: 233-248
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2275222
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2275222
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Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:233-248
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# input file: RAEC_A_2166896_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Sangram Keshari Jena
Author-X-Name-First: Sangram Keshari
Author-X-Name-Last: Jena
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Does the dynamics between government bond and equity markets validate the adaptive market hypothesis? evidence from transfer entropy
Abstract:
The study applies the effective transfer entropy (ETE) and Renyi transfer entropy (RTE) to quantify the information flow between government bonds and equity market of G7 countries. The magnitude and direction of information flow between these two markets are dynamic across the state of the markets and time thus confirming their adaptiveness to the evolution of cross-market information flow under different market conditions over time. Although information flow from the equity dominates the flow from the bond market, it is dynamic over the time and state of the markets. However, during the period of market turbulence, the bond dominates the equity market. This study is the first of its kind to validate the adaptive market hypothesis using the novel transfer entropy framework in the bond and equity market.
Journal: Applied Economics
Pages: 186-201
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166896
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166896
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Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:186-201
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# input file: RAEC_A_2166672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Constant L. Yayi
Author-X-Name-First: Constant L.
Author-X-Name-Last: Yayi
Title: Economic policy uncertainty and trade: does export sophistication matter?
Abstract:
In spite of the recent surge of research interest on the economic effect of policy uncertainties, trade behaviour during times of policy uncertainties is still not fully understood. We use the trade gravity model to examine the effects of economic policy uncertainty (EPU) on the trade of 22 countries over the period 1997–2020, based on the argument that EPU inflates bilateral trade costs. Overall, our results indicate that bilateral trade, exports, and imports are all negatively and significantly affected by both domestic and foreign policy uncertainties. Moreover, we document substantial heterogeneous trade reactions to policy uncertainties across countries. Specifically, in more export-sophisticated countries, our results show that only foreign policy uncertainty has a significant and negative effect on trade; whereas in less export-sophisticated countries, trade is significantly and negatively affected by both domestic and foreign EPU. These findings point to the double vulnerability of less export-sophisticated countries to domestic and foreign policy uncertainties and, to the resiliency of more export-sophisticated countries to domestic policy uncertainties and to their vulnerability to foreign policy uncertainties.
Journal: Applied Economics
Pages: 169-185
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166672
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166672
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# input file: RAEC_A_2167917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Patrick Schembri
Author-X-Name-First: Patrick
Author-X-Name-Last: Schembri
Author-Name: Huijie Yan
Author-X-Name-First: Huijie
Author-X-Name-Last: Yan
Author-Name: Katia Radja
Author-X-Name-First: Katia
Author-X-Name-Last: Radja
Title: Does disaggregated renewable energy stimulate economic growth? The role of spatial effect
Abstract:
This study attempts to empirically investigate the validity of energy-led growth hypothesis for renewable energy sources for developing countries. To this end, this paper estimates the impacts of disaggregated renewable energy sources on economic growth within a multivariate framework including the disaggregated non-renewable energy sources, capital, labour, institutional quality and human capital by using panel data of 32 lower/upper middle income countries over the period 2009 to 2019 and applying spatial dynamic techniques. Our results show the significantly positive impacts of individual renewable sources on economic growth. This study provides the first piece of evidence of spatial spillover effects from renewable energy on economic growth for developing countries. Our analysis reveals the significantly negative impacts of hydroelectricity on economic growth. Our analysis also confirms the importance of labour, institutional quality and human capital in driving economic growth.
Journal: Applied Economics
Pages: 213-232
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167917
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167917
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Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:213-232
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# input file: RAEC_A_2167916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christopher John Cruz
Author-X-Name-First: Christopher John
Author-X-Name-Last: Cruz
Author-Name: Sonia Dalmia
Author-X-Name-First: Sonia
Author-X-Name-Last: Dalmia
Author-Name: Manuel Pulido-Velásquez
Author-X-Name-First: Manuel
Author-X-Name-Last: Pulido-Velásquez
Title: Race and teaching evaluations: evidence from the covid-19 pandemic
Abstract:
While faculty of colour tend to receive lower course evaluations, it is unclear whether the lack of face-to-face interaction during the COVID-19 pandemic affected them differently. We examine this question using course-level data from a large US university. Estimates from our difference-in-differences models show that non-white faculty suffered a larger decline in ratings compared to their white peers, with the effect persisting even after controlling for English as the faculty’s second language. These findings contribute in furthering the discussion on how universities value course evaluations to measure teaching effectiveness and allocate faculty resources.
Journal: Applied Economics
Pages: 202-212
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167916
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167916
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Handle: RePEc:taf:applec:v:56:y:2024:i:2:p:202-212
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# input file: RAEC_A_2166670_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Author-Name: Meng-Wen Tsou
Author-X-Name-First: Meng-Wen
Author-X-Name-Last: Tsou
Title: Evolution of technical efficiency in Chinese coal mining firms: the roles of competition and technology
Abstract:
This study examines the evolution of technical efficiency (TE) and its determinants in China’s high-pollution coal mining industry. The effects of market competition, technology, and pollution abatement expenditure (PAE) on inefficiency are investigated. Using a firm-level panel dataset for the 2001–2013 period, estimation using a panel stochastic frontier model shows that the average TE was stable with a small fluctuation in the 2000s and then deteriorated in the 2010s. The majority of private entrants have lower TE than the main group of incumbents, state-owned enterprises, whereas foreign firms exhibit the highest TE among firms. We find that capital imports, research and development, and government subsidies are important factors in reducing technical inefficiency, highlighting the importance of technological activity on production efficiency. Further analysis of the relationship between PAE and TE reveals that PAE positively contributes to the efficiency of coal mining firms. Robustness checks ensure the aforementioned findings.
Journal: Applied Economics
Pages: 133-150
Issue: 2
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2166670
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2166670
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# input file: RAEC_A_2167926_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Oluwasegun Babatunde Adekoya
Author-X-Name-First: Oluwasegun Babatunde
Author-X-Name-Last: Adekoya
Author-Name: Johnson Ayobami Oliyide
Author-X-Name-First: Johnson Ayobami
Author-X-Name-Last: Oliyide
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Title: The spillover of media sentiment on the sukuk bonds during COVID-19 pandemic
Abstract:
This study focuses on the examination of the spillover impact of media sentiments (media coverage index, MCI), on the returns and volatility of the different investment graded sukuk bonds during the COVID-19 pandemic using the Time-varying Parameter Vector Autoregressive (TVP-VAR) model. We find that media sentiments have a stronger spillover impact on the bonds’ returns than their volatilities. The impacts are also found to be higher around the first few months of 2020 and 2021. The lower investment grade sukuk bonds are net transmitters of spillovers to their higher investment grade sukuk bonds counterparts. Sukuk bond BBB becomes a net recipient of spillovers and its net directional spillover relationship with sukuk bond AAA becomes zero. The spillover relationship is generally time-varying, with exceptional spillovers occurring during the early periods of the outbreak of the pandemic and the rise of its second wave.
Journal: Applied Economics
Pages: 360-374
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167926
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167926
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# input file: RAEC_A_2167918_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Petra Adelajda Zaninovic
Author-X-Name-First: Petra Adelajda
Author-X-Name-Last: Zaninovic
Author-Name: Katja Zajc Kejzar
Author-X-Name-First: Katja
Author-X-Name-Last: Zajc Kejzar
Author-Name: Helga Pavlic Skender
Author-X-Name-First: Helga
Author-X-Name-Last: Pavlic Skender
Title: Assessing the effects of hard and soft infrastructure on traditional vs supply-chain trade: the case of Central and Eastern EU member states (CEMS)
Abstract:
The aim of this paper is to assess the role of hard and soft infrastructure in trade, distinguishing between traditional trade and supply-chain trade. Using factor analysis, we construct four aggregate trade facilitation indicators where we measure hard infrastructure as physical and ICT infrastructure, while soft infrastructure accounts for border efficiency and institutional efficiency. For traditional trade, we use bilateral trade data from UN Comtrade. Supply-chain trade is measured in terms of domestic value-added (DVAFX) embodied in foreign gross exports and foreign value-added (FVA) embodied in domestic gross exports obtained from Eora MRIO database. We use panel data regression analysis with an empirical model specification based on a gravity model and covering the 2000–2019 period. We estimate model with the Poisson Pseudo-Maximum Likelihood Estimator (PPML). To control multilateral trade-resistance terms (MRT), we included reporter and partner fixed effects along with country pair fixed effects. The results confirm a statistically significant relationship between hard and soft infrastructure and trade. ICT and border efficiency have the strongest impact on both types of trade. Supply-chain trade responds most intensely to improvements in institutional efficiency. Results imply that ICT infrastructure and border efficiency might hold even greater importance for CEMS’s traditional and supply-chain trade.
Journal: Applied Economics
Pages: 249-264
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167918
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167918
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# input file: RAEC_A_2167924_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Josep Amer-Mestre
Author-X-Name-First: Josep
Author-X-Name-Last: Amer-Mestre
Author-Name: Alaitz Ayarza-Astigarraga
Author-X-Name-First: Alaitz
Author-X-Name-Last: Ayarza-Astigarraga
Author-Name: Marta C. Lopes
Author-X-Name-First: Marta C.
Author-X-Name-Last: Lopes
Title: E-learning engagement gap during school closures: differences by academic performance
Abstract:
We study the impact of COVID-19 school closures on differences in online learning usage by regional academic performance. Using data from Google Trends in Italy, we find that during the first lockdown, regions with a previously lower academic performance increased their searches for e-learning tools more than higher-performing regions. Analysing school administrative and survey data before the pandemic, we find that both teachers and students in lower performing regions were using no less e-learning tools than higher performing ones. These two findings suggest that the COVID-19 shock widened the e-learning usage gap between academically lower and higher-performing regions. Exploiting the regional variation in school closure mandates during the 2020–2021 academic year, we report that the patterns detected after the first lockdown were no longer present. Regions with different previous academic performance had the same response in terms of online learning usage when faced with stricter school closures.
Journal: Applied Economics
Pages: 337-359
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167924
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167924
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Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:337-359
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# input file: RAEC_A_2167923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: James W. Kolari
Author-X-Name-First: James W.
Author-X-Name-Last: Kolari
Author-Name: Sang-Ook Shin
Author-X-Name-First: Sang-Ook
Author-X-Name-Last: Shin
Title: Momentum and reversal: information from prior returns
Abstract:
This paper studies the joint dynamics of momentum and reversal strategies. Momentum investors face uncertainty about whether past patterns of price movements will continue (momentum) or turn over (reversal), thereby increasing volatility of momentum returns and occasionally leading to momentum crashes. We argue that the forces driving reversal over momentum tend to be strong if losers’ past returns are extremely low (in the time-series) or if losers are small and illiquid (in the cross-section). We subsequently propose new risk-managed momentum strategies by taking into account behavioural divergence between momentum and reversal in an effort to boost momentum profits and reduce volatility. Empirical tests for the U.S. stock market in the sample period of 1947 to 2015 document that momentum strategies in which investors implement stop-trading rules if losers’ past returns are extremely low as well as buy-small-loser rules substantially outperform traditional momentum strategies. International stock markets and robustness checks confirm our U.S. tests. Importantly, we find that outperformance is mainly attributable to the increase in abnormal returns (i.e. alpha) from various factor models.
Journal: Applied Economics
Pages: 318-336
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167923
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167923
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Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:318-336
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# input file: RAEC_A_2167919_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chu-Yu Guo
Author-X-Name-First: Chu-Yu
Author-X-Name-Last: Guo
Author-Name: Jiandong Wen
Author-X-Name-First: Jiandong
Author-X-Name-Last: Wen
Author-Name: Hui Hu
Author-X-Name-First: Hui
Author-X-Name-Last: Hu
Author-Name: Michael C. De Domenici
Author-X-Name-First: Michael C.
Author-X-Name-Last: De Domenici
Title: New insights into trends and reasons for the gender pay gap in Urban China, 1988-2013
Abstract:
This study documents long-run trends of the gender pay gap (GPG) in urban China 1988–2013 using the Chinese Household Income Project microdata. We find a fluctuating and enlarging GPG over time. The average ratio of female to male earnings fell from 85.2% to 79.9%. Analysis by earnings percentiles shows that the GPG is larger at the bottom of the earnings distribution than it is at the top. We utilize OLS regressions, Blinder-Oaxaca decomposition, and Juhn-Murphy-Pierce decomposition to make a comprehensive analysis of the contributing factors to the GPG. By 2013, conventional human capital variables explained little of the GPG. Gender differences in location (ownership, occupation, and industry) were important, although the magnitude of the effect of three factors has changed over time. Gender differences in job characteristics (contract type and firm size) are also important in explaining the GPG. The increases in the unexplained gap contributed to the divergence of the gender gap. Analysis by sub-periods shows that there were distinctive patterns behind the changes of the GPG. The main contributors to the diverging trend of the GPG were changes in the wage structure to women and women’s disadvantages in unobserved skills.
Journal: Applied Economics
Pages: 265-285
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167919
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167919
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Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:265-285
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# input file: RAEC_A_2167922_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: James R. Barth
Author-X-Name-First: James R.
Author-X-Name-Last: Barth
Author-Name: Richard J. Cebula
Author-X-Name-First: Richard J.
Author-X-Name-Last: Cebula
Author-Name: Jiayi Xu
Author-X-Name-First: Jiayi
Author-X-Name-Last: Xu
Title: Do minority banks perform better or worse than non-minority banks?
Abstract:
We investigate whether Minority Owned/ControlledBanks (MDIs) perform better or worse than Non-Minority Banks (NMDIs) in terms of lower profit rates and higher risk. MDIs and NMDIs are compared using a propensity score matching (PSM) methodology. We also compare the performance when their headquarters are in the same census tract. In contrast to previous and earlier studies, the empirical results indicate that MDIs exhibit no signs of under- or over-performance vis-à-vis NMDIs. Moreover, we find no statistically significant difference between the four sub-categories of MDIs (Black, Asian, Hispanic, and Native American) and NMDIs regarding either profitability or riskiness. Robustness checks using zip code and city-level data effectively confirm these results.
Journal: Applied Economics
Pages: 301-317
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167922
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167922
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Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:301-317
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# input file: RAEC_A_2167921_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Mohd Ziaur Rehman
Author-X-Name-First: Mohd Ziaur
Author-X-Name-Last: Rehman
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Title: Quantile dependence of Bitcoin with clean and renewable energy stocks: new global evidence
Abstract:
This paper examines the time-varying spillover effects and connectedness of the Bitcoin price with clean and renewable energy stocks using the quantile VAR framework. We use daily price indices spanning from 1 January 2014, to 18 October 2022. Before probing the quantile spillover effects between the markets examined, we first examine the mean-based averaged connectedness. These results indicate that Bitcoin receives more shocks from markets in the system than it transmits. Additionally, Bitcoin emerges as a net receiver of return shocks with index evolution among the markets examined, driven mainly by own shocks. Shifting to the results obtained using the QVAR approach, evidence reveals that Bitcoin acts as a net recipient of shocks under different quantiles in the system. In addition, Bitcoin returns strongly correlate with renewable energy stock returns under extreme events. We also confirm the dominance of renewable energy markets over Bitcoin and that the magnitude of their connectedness is time and event dependent. These findings confirm the diversification potential and safe-haven properties of Bitcoin for portfolio investors.
Journal: Applied Economics
Pages: 286-300
Issue: 3
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167921
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167921
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Handle: RePEc:taf:applec:v:56:y:2024:i:3:p:286-300
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# input file: RAEC_A_2167928_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongyun Zheng
Author-X-Name-First: Hongyun
Author-X-Name-Last: Zheng
Author-Name: Wanglin Ma
Author-X-Name-First: Wanglin
Author-X-Name-Last: Ma
Title: Economic benefits of internet use for smallholder wheat farmers
Abstract:
This study analyses the economic benefits of Internet use, focusing on farm profit, risk exposure (skewness), and cost of risk. We use the flexible moment-based production function to derive the risk exposure indicator and the endogenous switching regression model to account for the self-selection bias. A quantile-based approach is also employed to estimate the influence of Internet use on the cost of risk. Analysing the household-level data surveyed from 558 wheat farmers in China, we find that Internet use significantly increases farm profit by 8% and reduces risk exposure by 102%. The profit-increasing effect of Internet use is achieved mainly because Internet use increases gross revenue and wheat yields but reduces production costs. Internet use also decreases the cost of risk associated with wheat production. Our findings highlight that Internet use could be an anti-risk strategy for smallholder farmers to boost farm performance and mitigate production risk and crop failure.
Journal: Applied Economics
Pages: 398-413
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167928
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167928
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Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:398-413
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# input file: RAEC_A_2168610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoxiao Zhou
Author-X-Name-First: Xiaoxiao
Author-X-Name-Last: Zhou
Author-Name: Hua Zhang
Author-X-Name-First: Hua
Author-X-Name-Last: Zhang
Title: Does financial development benefit carbon neutrality in China? Pathway analysis and empirical study
Abstract:
Financial development (FD) is pioneered to solve the problem of vital capital supporting for carbon neutrality. Detecting the effect of FD on carbon emissions (CE) plays an important role in accurately planning FD, and guiding carbon neutrality in China. To clarify the influence of FD on CE and the underlying pathways concerning scale effect, structural effect, and technological effect, this paper use China’s 285 city-level data spanning 2003–2016 and fixed effect (FE) models and instrumental variable (IV) methods to test the effect of FD on carbon neutrality in China. The findings show that (1) the development of financial deepening, financial interrelation ratio, and financial intermediary all prompt carbon emissions at the national level. (2) Regional heterogeneity indicates that FD benefits carbon neutrality in mid-Western cities but fails in eastern cities. (3) FD increases carbon emissions by boosting electricity consumption but decreases carbon emissions by promoting structural optimization and technological progress. (4) Environmental regulations partially curb the carbon emissions effect of FD. This paper proposes some suggestions to reduce CE and gain carbon neutrality in China by greening FD, optimizing industrial structure, promoting technological innovation and strengthening environmental regulation.
Journal: Applied Economics
Pages: 440-461
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168610
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168610
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# input file: RAEC_A_2168612_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Oumar Diallo
Author-X-Name-First: Oumar
Author-X-Name-Last: Diallo
Author-Name: Steve Loris Gui-Diby
Author-X-Name-First: Steve Loris
Author-X-Name-Last: Gui-Diby
Author-Name: Patrick A. Imam
Author-X-Name-First: Patrick A.
Author-X-Name-Last: Imam
Title: Do monetary policy outcomes promote stability in fragile settings?
Abstract:
This paper assesses how monetary policy outcomes affect fragility. Diving into the universe of the most prominent combinations of pursued monetary policy objectives across fragile settings, we examine the relationships between monetary policy and fragility, and find the combination of reduction of inflation and lower unemployment to be the one that delivers the highest payoff in terms of promoting peace and cohesion. Setting aside the challenges of monetary policy transmission, results from our analysis broadly confirm the above ‘winning’ combination, with low inflation as a primary desired outcome and low unemployment rate as a secondary one. We also carry out a series of robustness tests, which confirm our findings. Overall, our results lend credence to the importance of paying attention – in the context of reducing fragility – to monetary policy outcomes.
Journal: Applied Economics
Pages: 483-499
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168612
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168612
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Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:483-499
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# input file: RAEC_A_2168608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Akihiro Omura
Author-X-Name-First: Akihiro
Author-X-Name-Last: Omura
Author-Name: Adrian (Wai Kong) Cheung
Author-X-Name-First: Adrian (Wai Kong)
Author-X-Name-Last: Cheung
Author-Name: Jen Je Su
Author-X-Name-First: Jen Je
Author-X-Name-Last: Su
Title: Does natural gas volatility affect Bitcoin volatility? Evidence from the HAR-RV model
Abstract:
While volatility spillover is a vital research area in financial economics (due to its importance for risk valuation and portfolio diversification strategies), the volatility linkage between Bitcoin and electricity/energy markets has not received adequate attention. As the Bitcoin mining cost comes mainly from electricity (which is highly dependent on natural gas), we hypothesize that natural gas is a non-trivial Bitcoin price volatility driver and aim to test if this is the case. Specifically, we employ a widely used model called the HAR-RV model to assess volatility spillover across Bitcoin and natural gas using high-frequency data. We find a spillover effect from natural gas to Bitcoin, and the positive (negative) component of natural gas volatility stabilizes (destabilizes) Bitcoin volatility. The spillover effect is further examined and confirmed using an out-of-sample approach.
Journal: Applied Economics
Pages: 414-425
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168608
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168608
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Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:414-425
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# input file: RAEC_A_2168609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Philomena M. Bacon
Author-X-Name-First: Philomena M.
Author-X-Name-Last: Bacon
Author-Name: Anna Conte
Author-X-Name-First: Anna
Author-X-Name-Last: Conte
Author-Name: Peter G. Moffatt
Author-X-Name-First: Peter G.
Author-X-Name-Last: Moffatt
Title: Gender and gambling preference
Abstract:
Gambling preferences are analysed using survey data from the wider population. Respondents were confronted with a hypothetical lottery question, in which they were asked to imagine having just won a large prize, and asked how much of this prize they would be willing to invest in a further gamble. We observe the majority of respondents avoiding the gamble altogether. We demonstrate that such behaviour cannot easily be explained by standard models of choice under risk, since it implies implausible degrees of risk aversion. We propose that the observed behaviour can instead be explained in terms of gambling aversion. Since the decision variable takes the form of the number of ‘units’ of the prize that the respondent wishes to invest in the gamble, and since the decision is observed twice for some respondents, we adopt the panel version of the Zero-Inflated Poisson model as an econometric framework. We assume that individual characteristics affect both stages of the decision-making process. We are particularly interested in the effect of gender, and we find that males have a significantly higher probability of participating in the gamble, and are also (conditional on gambling) prepared to gamble significantly larger amounts.
Journal: Applied Economics
Pages: 426-439
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168609
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168609
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Handle: RePEc:taf:applec:v:56:y:2024:i:4:p:426-439
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# input file: RAEC_A_2167927_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hiroaki Masuhara
Author-X-Name-First: Hiroaki
Author-X-Name-Last: Masuhara
Author-Name: Kei Hosoya
Author-X-Name-First: Kei
Author-X-Name-Last: Hosoya
Title: Relationship among COVID-19, mobility, and food service vouchers in Japan
Abstract:
In 2020, the Japanese government launched the Go To Eat campaign, a policy initiative involving the distribution of vouchers to households for use at restaurants, with the aim of supporting the food service industry, which had experienced a significant decrease in sales due to the government’s ‘self-restraint request’ during the COVID-19 pandemic. This paper uses a nonparametric method to investigate the relationship between the Go To Eat campaign and the spread of COVID-19 in Japan by examining food service expenditures, mobility, positive polymerase chain reaction (PCR) tests, and the Indices of Industrial Production. The distribution of food service expenditures changed in October and November, when the campaign started, as well as in December, when the campaign ended. In addition, the distribution of mobility changed in January 2021, when a state of emergency was declared. The Go To Eat campaign was economically effective as a temporary subsidy, and it might have facilitated mobility in a way that was difficult to control for some time. As such, the indirect effect of the campaign on the rise in the number of positive PCR tests is undeniable.
Journal: Applied Economics
Pages: 375-397
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2167927
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2167927
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# input file: RAEC_A_2168611_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fengxian Chen
Author-X-Name-First: Fengxian
Author-X-Name-Last: Chen
Author-Name: Tianruo Hao
Author-X-Name-First: Tianruo
Author-X-Name-Last: Hao
Title: The degree of RMB as an international anchor currency and its driving factors: an exchange rate perspective
Abstract:
This paper provides an alternative method to estimate the degree of RMB internationalization by combining the modified Frankel-Wei’s (1994, 2008) weight-inference technique and the state space model. Using a large sample of monthly exchange rate data of 54 economies, we estimate the dynamic currency weights of the U.S. dollar, Euro, RMB, Japanese yen and British pound. Results show that RMB has markedly increased since August 2015 as an international anchor currency, and then gradually decreased from June 2016 to December 2018. The currency weights ranked from highest to lowest are the U.S. dollar, Euro, RMB, British pound and Japanese yen for now. Furthermore, we also find that relative trade openness, capital account openness and exchange rate stability are the key drivers promoting the weight of the RMB. The above findings are robust to a battery of robustness tests. Our research contributes to the literature by providing a dynamic anchor currency weight estimation method and presenting a preliminary explanation for the changes of currency weight.
Journal: Applied Economics
Pages: 462-482
Issue: 4
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168611
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168611
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# input file: RAEC_A_2168613_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joshua K. Park
Author-X-Name-First: Joshua K.
Author-X-Name-Last: Park
Author-Name: Xiangcai Meng
Author-X-Name-First: Xiangcai
Author-X-Name-Last: Meng
Title: Oil price changes and aggregate economic fluctuations: new evidence from the Republic of Korea
Abstract:
The impact of oil price on the aggregate economy is an interesting topic which has been examined mainly in the time dimension, but relatively little exploration has been done to reveal how oil price influences inflation, industrial production, and unemployment across frequencies and over time. Employing a continuous wavelet approach, this study contributes to the literature by investigating the effects of oil price on aggregate economic activities in the time-frequency space with a monthly dataset from South Korea. The empirical results demonstrate that: First, the effect of oil price on inflation becomes stronger as moving from high frequencies between 2000 and 2005 to low frequencies between 2008 and 2018. Second, an increase in oil price is associated with a decrease in industrial production, and oil price movements could largely mirror industrial production fluctuations at the 64-month scale between 2011 and 2013 and at the 64-96-month scale between 2014 and 2021. Third, the impact of oil price on unemployment becomes weaker when moving from the 12-24-month scale between 2009 and 2012 to the 24-48-month scale between 2008 and 2016. Our results indicate that policymakers should consider these heterogeneous effects of oil price on the aggregate economy while developing stabilization policies.
Journal: Applied Economics
Pages: 501-519
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168613
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168613
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# input file: RAEC_A_2168616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nathan Kettlewell
Author-X-Name-First: Nathan
Author-X-Name-Last: Kettlewell
Author-Name: Fruhling Rijsdijk
Author-X-Name-First: Fruhling
Author-X-Name-Last: Rijsdijk
Author-Name: Sisira Siribaddana
Author-X-Name-First: Sisira
Author-X-Name-Last: Siribaddana
Author-Name: Athula Sumathipala
Author-X-Name-First: Athula
Author-X-Name-Last: Sumathipala
Author-Name: Agnieszka Tymula
Author-X-Name-First: Agnieszka
Author-X-Name-Last: Tymula
Author-Name: Helena Zavos
Author-X-Name-First: Helena
Author-X-Name-Last: Zavos
Author-Name: Nicholas Glozier
Author-X-Name-First: Nicholas
Author-X-Name-Last: Glozier
Title: Natural disaster and risk preferences: evidence from Sri Lankan twins
Abstract:
We estimate whether risk preferences are affected by traumatic events by using a unique survey of Sri Lankan twins which contains information on individual’s exposure to the 2004 Indian Ocean Tsunami, validated measures of mental health and risk preferences, and a rich set of control variables. Our estimation strategy utilizes variation in experiences within twin pairs and allows us to explore wealth shocks and/or changes in mental health as mechanisms. We find that exposure to the tsunami lead to less risk aversion, a result that is not explained by mental health.
Journal: Applied Economics
Pages: 558-581
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168616
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168616
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Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:558-581
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# input file: RAEC_A_2168614_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Brice Dupoyet
Author-X-Name-First: Brice
Author-X-Name-Last: Dupoyet
Author-Name: Xiaoquan Jiang
Author-X-Name-First: Xiaoquan
Author-X-Name-Last: Jiang
Author-Name: Qianying Zhang
Author-X-Name-First: Qianying
Author-X-Name-Last: Zhang
Title: A new take on the relationship between interest rates and credit spreads
Abstract:
We revisit the link between interest rates and corporate bond credit spreads by applying Rigobon’s (2003) unique heteroskedasticity-based identification methodology to their interconnected dynamics through a bivariate VAR system. This different approach allows us to account for simultaneity issues and use this framework to test the various possible explanations for the credit spread – interest rate relation that have been proposed by the literature over the years. We find that credit spreads do indeed respond negatively to interest rates, a result consistent with Merton’s (1974) structural model. This negative relation is robust to macroeconomic shocks, market uncertainty, business cycles, different sample periods, bond callability, and bond ratings. We also find the magnitude of the negative relation to be larger for high-yield bonds than for investment-grade bonds, and are able to rule out the option-like feature of callable bonds proposed by Duffee (1998) as the main driver of the negative nature of the relationship. These results have important portfolio and risk management implications.
Journal: Applied Economics
Pages: 520-536
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168614
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168614
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Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:520-536
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# input file: RAEC_A_2169240_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Salaheddine El Omari
Author-X-Name-First: Salaheddine
Author-X-Name-Last: El Omari
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Title: Accounting for inflation dynamic in a fully optimizing macroeconomic framework: evidence from the US states
Abstract:
This article proposes a New Keynesian DSGE model that can capture the hump-shaped response of inflation to a monetary policy shock that does not depend upon backward-looking elements for the price and wage-setting, such as the indexation of wages or prices. The two additional elements required to achieve a hump-shaped response are roundabout production structure (input–output structure for production) and working capital. Depending on the model’s parameterization, this channel can provide a pronounced response of inflation. In addition, our article provides some reduced-form evidence about the hump-shaped response of inflation using a VAR with Cholesky ordering.
Journal: Applied Economics
Pages: 582-598
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2169240
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169240
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# input file: RAEC_A_2168615_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kai Zhao
Author-X-Name-First: Kai
Author-X-Name-Last: Zhao
Author-Name: Jinkai Zhao
Author-X-Name-First: Jinkai
Author-X-Name-Last: Zhao
Author-Name: Xiaoling Yuan
Author-X-Name-First: Xiaoling
Author-X-Name-Last: Yuan
Author-Name: Yonghong Jiang
Author-X-Name-First: Yonghong
Author-X-Name-Last: Jiang
Author-Name: Mengyuan Zhong
Author-X-Name-First: Mengyuan
Author-X-Name-Last: Zhong
Title: Identifying multidimensional effects of online reviews on consumers’ automobile purchase behaviours in China: linking observational learning with economic outcomes
Abstract:
Based on 1,087,248 individual online reviews for 2007–2020 collected from the websites of AutoHome and Sohu Auto using the Python method, rating, volume, variance, and many other characteristics of online reviews are generated for 808 automobile products sold in mainland China. Using the observational learning (OL) framework to establish the relationship between automotive consumers’ purchasing behaviours and the display of online reviews, the econometric results reveal that, at the aggregate level, automotive consumers seem to respond more significantly to the volume/variance of online reviews (i.e. hedonic cues) rather than the average rating (i.e. utilitarian cues) for producing adequate OL. However, at the sub-categorical level, consumers are more likely to produce adequate OL regarding ratings representing utilitarian attributes while effects of most of the variance (i.e. hedonic cues) are limited. These findings imply that consumers are more likely to perceive automobile products as ‘more hedonic and less utilitarian’, but an overly complicated online review system forces consumers to simplify the OL process that prioritizes utilitarian attributes, as hedonic information is difficult to be understood. This study provides theoretical and empirical insights about how consumers respond differently to various online review characteristics for products with no clear boundary in a hedonic/utilitarian distinction.
Journal: Applied Economics
Pages: 537-557
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2168615
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2168615
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# input file: RAEC_A_2169242_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ping Zhang
Author-X-Name-First: Ping
Author-X-Name-Last: Zhang
Author-Name: Yiru Wang
Author-X-Name-First: Yiru
Author-X-Name-Last: Wang
Author-Name: Ruyan Wang
Author-X-Name-First: Ruyan
Author-X-Name-Last: Wang
Author-Name: Tewei Wang
Author-X-Name-First: Tewei
Author-X-Name-Last: Wang
Title: Digital finance and corporate innovation: evidence from China
Abstract:
In this paper, we investigate the impact of digital finance on corporate innovation based on Chinese A-share listed companies from 2011 to 2017. We find that digital finance has a significant promotion effect on corporate innovation. The development of digital finance promotes enterprise innovation, increasing the number of patent applications and authorizations. The development of digital finance mainly promotes corporate innovation through two channels. First, digital finance improves bank competition and credit availability to promote corporate innovation; second, digital finance reduces financing constraints and financing costs of enterprises to promote corporate innovation. We also conduct a rich set of robustness tests and obtain consistent conclusions.
Journal: Applied Economics
Pages: 615-638
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2169242
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169242
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Handle: RePEc:taf:applec:v:56:y:2024:i:5:p:615-638
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# input file: RAEC_A_2169241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Valeria Bucci
Author-X-Name-First: Valeria
Author-X-Name-Last: Bucci
Author-Name: Giancarlo Ferrara
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Ferrara
Author-Name: Giuliano Resce
Author-X-Name-First: Giuliano
Author-X-Name-Last: Resce
Title: Local government spending efficiency and fiscal decentralization: evidence from Italian municipalities
Abstract:
This article investigates the association between fiscal decentralization and municipality efficiency by conducting an empirical analysis focused on the Italian context. We conduct a cost-efficiency analysis based on a stochastic frontier approach with municipality and time fixed effects modelling the decentralization effect with a continuous variable, taxation autonomy, which allows for accounting for the degree and evolution of fiscal decentralization over time. The empirical analysis provides convincing evidence that fiscal decentralization is positively associated with municipalities’ efficiency. The positive effect is confirmed when additional controls are included into the model and persists to robustness checks. This evidence lends support for policies aimed at making more closely aligned expenditure and revenue decision-making.
Journal: Applied Economics
Pages: 599-614
Issue: 5
Volume: 56
Year: 2024
Month: 01
X-DOI: 10.1080/00036846.2023.2169241
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169241
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# input file: RAEC_A_2174943_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jane Fry
Author-X-Name-First: Jane
Author-X-Name-Last: Fry
Author-Name: Meg Elkins
Author-X-Name-First: Meg
Author-X-Name-Last: Elkins
Author-Name: Lisa Farrell
Author-X-Name-First: Lisa
Author-X-Name-Last: Farrell
Title: Cognition and curiosity:Strategies for firms to recruit curious employees
Abstract:
Curiosity has long been touted as important for the ability to learn and has been linked with innovation and entrepreneurship. It is also important that employers know how to identify curious potential employees in cost-effective ways during recruitment processes. This paper explores the association between curiosity and cognitive ability. Recruitment processes rely heavily on educational attainment, especially when recruiting young people with low labour market experience. This paper explores the association between curiosity and maths, science, and reading ability in youth. Using six waves of data from the 2003, 2006, and 2009 cohorts of the Longitudinal Surveys of Australian Youth, we examine the extent to which the curiosity of young adults is associated with their school-age cognition level. We find that curious individuals are more likely to have had higher levels of science and reading ability in school, yet curiosity is negatively associated with school-age mathematics ability. These findings provide clear strategies for employers wanting to recruit curious employees without access to expensive profiling techniques.
Journal: Applied Economics
Pages: 1119-1135
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174943
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174943
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# input file: RAEC_A_2174946_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The role of Covid-19 in bank profitability convergence: evidence from a sample of US banks and club clustering
Abstract:
This paper explores whether there is convergence of bank profits in the US banking sector across the periods before and during the COVID-19 pandemic. For the first time in the literature, it provides empirical evidence from 86 largest banks in the sector by making use of certain convergence methods. The empirical (robust) findings document that over the pandemic crisis, bank profits illustrated a more convergence pattern, while certain explanatory determinants of bank profitability, such as non-performing loans and digital technology, seem to stronger impact on higher convergence during the pandemic crisis.
Journal: Applied Economics
Pages: 1155-1166
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174946
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174946
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# input file: RAEC_A_2175772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: W. David Allen
Author-X-Name-First: W. David
Author-X-Name-Last: Allen
Author-Name: W. Charles Sawyer
Author-X-Name-First: W. Charles
Author-X-Name-Last: Sawyer
Title: Property crime and the China trade shock
Abstract:
Burglary has declined markedly in the U.S.A. We investigate whether increased imports from China (the China Trade Shock), by reducing the market value of theft-worthy goods, reduced the incentive to commit this and other property crimes. Panel data models reveal lower property crime rates in association with increased Chinese imports and comparable effects in relation to other prominent trade partners, indicating minimal property crime displacement effects. Some import effects do link to increased violent crime rates, but none in relation to imports from China. The results illustrate how expanded trade provides social benefits in addition to its well-established economic benefits.
Journal: Applied Economics
Pages: 1167-1190
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2175772
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175772
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Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1167-1190
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# input file: RAEC_A_2175773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Bei Gao
Author-X-Name-First: Bei
Author-X-Name-Last: Gao
Author-Name: Yanbo Jin
Author-X-Name-First: Yanbo
Author-X-Name-Last: Jin
Author-Name: Jingxian Zou
Author-X-Name-First: Jingxian
Author-X-Name-Last: Zou
Title: What drives enterprise asset-backed securitization in China?
Abstract:
Using transaction-level data on enterprise asset-backed securities (ABS), we investigate the relationship between ABS issuance, interest savings, and firm characteristics in China. About half of the ABS deals were issued by small and medium-sized enterprises (SMEs), and around 70% of the issues carry a coupon rate lower than the average interest rate on bank loans. Firms issue more ABS when the interest savings are high, or when they face more restricted access to credit. Private firms are most responsive to the benefits provided by the enterprise ABS market compared to state-owned enterprises and foreign companies.
Journal: Applied Economics
Pages: 1191-1207
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2175773
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175773
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# input file: RAEC_A_2175774_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Hongxia Wang
Author-X-Name-First: Hongxia
Author-X-Name-Last: Wang
Author-Name: Shushu Qiu
Author-X-Name-First: Shushu
Author-X-Name-Last: Qiu
Author-Name: Jianli Wang
Author-X-Name-First: Jianli
Author-X-Name-Last: Wang
Author-Name: Ho Yin Yick
Author-X-Name-First: Ho Yin
Author-X-Name-Last: Yick
Title: An ARDL approach to study the cointegration relations between the Shanghai crude oil futures and global markets
Abstract:
The Shanghai crude oil futures market, as the largest crude oil market in the Asia-Pacific region, is an important complement to the global crude oil market. We use the autoregressive distributed lag model (ARDL) to examine long-term and short-term cointegration relations between the Shanghai crude oil futures market and China’s crude oil spot market (Daqing), international (WTI and Brent) benchmarks. Based on the price data of the Shanghai crude oil futures contract covering a long period, we find that, in the long run, the Shanghai crude oil futures price is greatly affected by international crude oil markets. In the short run, both international and China’s crude oil spot markets have a significant influence on the Shanghai crude oil futures prices. Moreover, our dynamic simulation results show that there is a significant time lag for the Shanghai crude oil futures market to respond to the shocks from the domestic and international markets.
Journal: Applied Economics
Pages: 1208-1219
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2175774
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175774
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Handle: RePEc:taf:applec:v:56:y:2024:i:10:p:1208-1219
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# input file: RAEC_A_2174941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Hyuna Jang
Author-X-Name-First: Hyuna
Author-X-Name-Last: Jang
Author-Name: Jong-Min Kim
Author-X-Name-First: Jong-Min
Author-X-Name-Last: Kim
Author-Name: Hohsuk Noh
Author-X-Name-First: Hohsuk
Author-X-Name-Last: Noh
Title: Vine copula Granger causality in quantiles
Abstract:
Causal relationships between time series are typically examined by testing for Granger causality. Although many studies have tested Granger causality in mean, non-causality in mean does not need to carry over to other distribution characteristics or different parts of the distribution. This scenario has motivated many researchers to investigate causal relations from the perspective of conditional quantiles. Several methods have been proposed for both parametric and nonparametric modelling frameworks. Parametric methods have limitations in detecting nonlinear causality, whereas nonparametric methods have difficulty selecting smoothing parameters that significantly affect detection performance. To overcome the difficulties of both parametric and nonparametric Granger causality tests in quantiles, we propose a vine copula Granger causality test in quantiles using the semiparametric time-series modelling technique. The proposed test overcomes shortcomings in parametric modelling and has a computational advantage over nonparametric tests. Our test shows good performance in terms of size and power when using various simulated data. Finally, we illustrate our test using recent cryptocurrency data.
Journal: Applied Economics
Pages: 1109-1118
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174941
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174941
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# input file: RAEC_A_2174945_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Tong Fang
Author-X-Name-First: Tong
Author-X-Name-Last: Fang
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: National culture and international business cycle co-movements
Abstract:
We investigate the relationship between national culture and international business cycle co-movements. We first characterize international business cycle co-movements with a dynamic latent factor model that decomposes 101 countries’ real GDP growth rates into world, regional and country-specific factors and estimate the proportion of real GDP growth rate variance explained by the world, regional and country factors for each country. We then regress these proportions on each of the five dimensions of Hofstede’s national culture with a set of control variables. We find that four dimensions (except for power distance) are significantly related to business cycle co-movements, and they have different impacts. In countries with masculinity, uncertainty avoidance and long-term orientation preferences, the global factor explains a larger real GDP growth rate variance. Individualism weakens a country’s business cycle co-movement with the global business cycle. Countries with similar cultural values have similar economic structures and similar exposures to global shocks, which lead to business cycle co-movements. Our results are robust after addressing the issue of endogeneity and subsample analyses.
Journal: Applied Economics
Pages: 1136-1154
Issue: 10
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174945
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174945
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# input file: RAEC_A_2169244_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andrew Samuel
Author-X-Name-First: Andrew
Author-X-Name-Last: Samuel
Author-Name: Jeremy Schwartz
Author-X-Name-First: Jeremy
Author-X-Name-Last: Schwartz
Title: Going Underground: The impact of deterrence on the landlords' decision to operate informally
Abstract:
This paper examines how enforcement of regulations affects firms’ decision to operate formally, underground, or exit the market. The firms in our study are landlords of rental properties. Using a unique data set that identifies underground and exited properties, we find that enforcement makes going underground more likely when only fines are issued but less likely when enforcement requires abatement. Additionally, observing higher levels of enforcement among neighbouring properties (general deterrence) increases the likelihood of going underground when abatement is required. These findings are consistent with the predictions of a theoretical framework we develop. Accordingly, the study makes two contributions to the informality literature. First, that whether enforcement has a positive or negative impact on operating underground depends on whether that enforcement requires abatement. Second, it identifies both the extensive margin between informality and formality, and the margin between informality and exiting an industry.
Journal: Applied Economics
Pages: 656-673
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2169244
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169244
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Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:656-673
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# input file: RAEC_A_2170968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luca Bonacini
Author-X-Name-First: Luca
Author-X-Name-Last: Bonacini
Author-Name: Irene Brunetti
Author-X-Name-First: Irene
Author-X-Name-Last: Brunetti
Author-Name: Giovanni Gallo
Author-X-Name-First: Giovanni
Author-X-Name-Last: Gallo
Title: Choose the school, choose the performance: new evidence on determinants of students’ performance in eight European countries
Abstract:
This study aims to identify the main determinants of students’ performances in reading and maths across eight European Union countries (i.e. Austria, Croatia, Germany, Hungary, Italy, Portugal, Slovakia, and Slovenia). Based on student level data from the OECD-PISA 2018 survey and by means of the application of efficient algorithms, we highlight that the number of books at home or a variable combining the type and location of school represent the most important predictors of the students’ performance in all the analysed countries, while other school characteristics are rarely relevant. Econometric results show that students attending vocational schools perform significantly worse than those in general schools. Looking at differences between students attending schools in big cities and those in small cities, they are never statistically significant except in Portugal. Through the Gelbach decomposition method, which allows to measure the relative importance of observable characteristics to explain a gap, we show that the differences in test scores between big and small cities depend on the schools’ characteristics, while the differences between general and vocational schools are mainly explained by the families’ social status. Results appear robust to the hierarchical model approach.
Journal: Applied Economics
Pages: 692-707
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2170968
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170968
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Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:692-707
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# input file: RAEC_A_2170967_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jungmin Yoo
Author-X-Name-First: Jungmin
Author-X-Name-Last: Yoo
Author-Name: Sooin Kim
Author-X-Name-First: Sooin
Author-X-Name-Last: Kim
Title: Impact of IFRS adoption on the disclosure of management forecasts by industry concentration
Abstract:
We aim to investigate the impact of the adoption of the International Financial Reporting Standards (IFRS) on a firm’s strategic voluntary disclosure decisions under different product market conditions. In the corporate world, firms tactically decide the level of voluntary disclosures considering their benefits, like resolving information asymmetry in the financial market, and costs, like providing proprietary information to their rivals. The adoption of IFRS has affected the demands in the financial market for complementary information, and therefore, it would affect the incentive to withhold corporate information in consideration of proprietary costs in the product market. Using a sample of Korean firms, we find that the likelihood of withholding management forecasts in concentrated industries is weaker in the post-IFRS adoption phase than in the pre-IFRS adoption phase. This is because there are greater demands for corporate disclosures for firms in concentrated industries in the post-IFRS adoption phase than earlier. Moreover, we find that the influence of IFRS on the decision of firms in concentrated industries to disclose management forecasts is significant only for firms with higher market power and higher financial leverage.
Journal: Applied Economics
Pages: 674-691
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2170967
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170967
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# input file: RAEC_A_2170969_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dorian Balvir
Author-X-Name-First: Dorian
Author-X-Name-Last: Balvir
Title: Fiscal rules: the imitation game
Abstract:
De jure fiscal rules have known a rapidly increasing popularity worldwide. This paper aims at analysing their spatial diffusion in 108 countries over the period 2001–2015 using a pooled version of the Bayesian SAR probit model. Using two different types of weighting (geographic proximity and bilateral trade) and desegregating the results for specific rules, I find a significant and positive spatial lag in line with the imitation (strategic complementarity) hypothesis. Rational imitation, deriving from a race to fiscal credibility, is preferred over the blind imitation hypothesis as the mimetic behaviour is revealed only in countries facing weaker fiscal reputation.
Journal: Applied Economics
Pages: 708-727
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2170969
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170969
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# input file: RAEC_A_2287558_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sébastien Charles
Author-X-Name-First: Sébastien
Author-X-Name-Last: Charles
Title: Is French (dis)inflation explained by conflicting-claims theory? Evidence from cointegration with structural break
Abstract:
The aim of this article is to provide an explanation of French (dis)inflation based on the conflicting-claims theory. Making use of cointegration techniques with structural breaks, we bring some empirical evidence suggesting the soundness of such a theory in order to explain the variation of inflation in the long run. Amongst our main results, we show that the transition from the Great Inflation of the 1970s to the Great Moderation was the consequence of a dramatic collapse in the bargaining power of both workers and firms. As a secondary objective, it is also an attempt to fill the gap with other competing theories of inflation since the conflicting-claims approach is characterized by a relative paucity in terms of empirical works.
Journal: Applied Economics
Pages: 728-743
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2287558
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2287558
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Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:728-743
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# input file: RAEC_A_2287554_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yao Han
Author-X-Name-First: Yao
Author-X-Name-Last: Han
Author-Name: James W. Kolari
Author-X-Name-First: James W.
Author-X-Name-Last: Kolari
Author-Name: Seppo Pynnonen
Author-X-Name-First: Seppo
Author-X-Name-Last: Pynnonen
Title: Dynamic risk adjustment in long-run event study tests
Abstract:
The existence of long-run abnormal returns after major corporate events has become a controversial subject of debate. We contribute new evidence by implementing a daily rolling prediction error (RPE) approach using popular asset pricing models to adjust for time-varying risk parameters in asset pricing models when estimating long-run abnormal returns. Using this simple approach, we find initial significant return responses in the month or two after SEOs and M&As but none thereafter. Robustness checks with different asset pricing models, corporate events, and subperiods corroborate our results. Also, simulation tests confirm the robustness of the RPE method to potential risk shifts. We conclude that, after dynamic risk adjustment, long-run abnormal returns do not occur after the major corporate actions under study.
Journal: Applied Economics
Pages: 744-764
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2287554
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2287554
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# input file: RAEC_A_2169243_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guo Wu
Author-X-Name-First: Guo
Author-X-Name-Last: Wu
Author-Name: Jiadong Luo
Author-X-Name-First: Jiadong
Author-X-Name-Last: Luo
Author-Name: Kejing Tao
Author-X-Name-First: Kejing
Author-X-Name-Last: Tao
Title: Research on the influence of FinTech development on credit supply of commercial banks: the case of China
Abstract:
This study investigates the impact of FinTech development on the credit supply of China’s commercial banks to individuals and enterprises. We first evaluate the development status and prospects of FinTech in China and construct theoretical influencing hypotheses. A ‘supply-side’ FinTech development index is constructed using principal component analysis. We employ panel data models and use financial data from 22 listed China’s commercial banks between the year 2013 and 2020 to empirically test the hypothesized relationships. Multiple approaches are used to deal with endogenous problems. We also estimate the impact in a difference-in-difference model specification. The results show that FinTech development effectively facilitates the expansion of bank credit and the relationship continues to hold after remedying endogeneity issues. We further find that the impact is heterogeneous across banks in terms of bank type and bank size, with the impact on state-owned commercial banks being the least significant and the impact on small banks being the most significant.
Journal: Applied Economics
Pages: 639-655
Issue: 6
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2169243
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2169243
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Handle: RePEc:taf:applec:v:56:y:2024:i:6:p:639-655
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# input file: RAEC_A_2173362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Nattanicha Chairassamee
Author-X-Name-First: Nattanicha
Author-X-Name-Last: Chairassamee
Author-Name: Oudom Hean
Author-X-Name-First: Oudom
Author-X-Name-Last: Hean
Title: Financing and Enrollments in Public Universities
Abstract:
State budget cuts have raised concerns about the disproportionate enrolment of out-of-state students. These students pay higher tuition fees at public universities. We investigate the decision-making of public universities about in-state and out-of-state enrolments by considering tuition rates as a financial incentive. We find that out-of-state enrolment is elastic, while in-state enrolment is relatively less elastic. Universities participating in reciprocity programs show that local student share is relatively insensitive to tuition changes; however, non-local student enrolments are more sensitive to these tuition changes. Overall, there is no evidence of the crowding-out effect on local student enrolment.
Journal: Applied Economics
Pages: 812-825
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2173362
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2173362
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Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:812-825
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# input file: RAEC_A_2291098_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Zhibai Zhang
Author-X-Name-First: Zhibai
Author-X-Name-Last: Zhang
Title: Is there a rule of thumb for absolute purchasing power parity to hold?
Abstract:
The validity of absolute purchasing power parity (APPP) between the pairs of 55 representative countries, along with their pooled data, is examined empirically. A rule of thumb for the validity of APPP is tentatively proposed. That is, for a pair of countries exhibiting the Penn effect, when the GDP per capita of one country is less than half of the other’s, it is very likely that APPP does not hold. However, when the GDP per capita of one country is greater than half of the other’s, there is a certain possibility that APPP holds.
Journal: Applied Economics
Pages: 851-860
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2291098
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2291098
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Handle: RePEc:taf:applec:v:56:y:2024:i:7:p:851-860
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# input file: RAEC_A_2289935_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Sang W. Yoon
Author-X-Name-First: Sang W.
Author-X-Name-Last: Yoon
Author-Name: Younjun Kim
Author-X-Name-First: Younjun
Author-X-Name-Last: Kim
Author-Name: Byoung G. Park
Author-X-Name-First: Byoung G.
Author-X-Name-Last: Park
Author-Name: Chang-Ho Yoon
Author-X-Name-First: Chang-Ho
Author-X-Name-Last: Yoon
Title: Bilateral environmental aid and trade
Abstract:
The paper estimates the determinants of the growing volume of bilateral environmental aid for the mitigation of climate change using an empirically testable multilateral framework in which both donors and recipient countries compete in world export markets. As the potential donors weigh environmental benefits against the economic costs of providing aid, strategic interactions between the donors and the recipient countries as well as among the donors, influence the evolution of environmental aid. The paper shows that while the volume of bilateral environmental aid increases with the recipient country’s credible environmental commitment and bilateral trade volume, the competitive pressure in the export market reduces bilateral environmental aid. Free-riding incentives prevail among the individual donors, whereas the multilateral environmental aids that aim to restore the loss of global environmental resources without altering individual trade competitiveness can increase bilateral environmental aids.
Journal: Applied Economics
Pages: 836-850
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2289935
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2289935
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# input file: RAEC_A_2174497_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Jungho Baek
Author-X-Name-First: Jungho
Author-X-Name-Last: Baek
Title: The role of crude oil demand and supply shocks on exchange rates: empirical evidence from South Korea
Abstract:
The primary contribution of the present paper is to explicitly take into consideration the role that the three different components of crude oil shocks – oil supply shocks, aggregate demand shocks, and oil-specific demand shocks – when studying the nexus between oil price shocks and the South Korean won (KRW). We discover that oil demand shocks have had significant impacts on KRW over the past two decades: that is, an upsurge in oil prices driven by positive shocks in aggregate demand and oil-specific demand appears to appreciate KRW. However, oil supply shocks turn out to have negligible impacts. We also unveil that two oil demand shocks seem to asymmetrically influence KRW in the short run.
Journal: Applied Economics
Pages: 826-835
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174497
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174497
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# input file: RAEC_A_2172521_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Erik Alda
Author-X-Name-First: Erik
Author-X-Name-Last: Alda
Author-Name: Víctor Giménez
Author-X-Name-First: Víctor
Author-X-Name-Last: Giménez
Author-Name: Irvin Gilberto Paz Castro
Author-X-Name-First: Irvin Gilberto
Author-X-Name-Last: Paz Castro
Author-Name: América Ivonne Zamora Torres
Author-X-Name-First: América Ivonne
Author-X-Name-Last: Zamora Torres
Title: Modernization plans for the Mexican customs system: have they really worked? A productivity impact assessment
Abstract:
Efficiency measurement of customs offices is a nascent but growing area of research interest. In this study we examined whether the Mexican government’s policies enacted during the 2011–2017 period improved the efficiency of the customs system. Our empirical approach employed a standard metafrontier model to assess the efficiency of all customs offices in Mexico. We examined changes in the best-practice performance, productivity, and technology leadership for three groups of customs offices (border, interior, and maritime) by conducting static and temporal analyses. The static analysis showed that border customs had the most within-group variations. The internal customs group exhibited constant efficiency, whereas the maritime customs group was nearest to the metafrontier. The temporal analysis indicated that border customs offices were the most productive group during the period; however, this group was distant from the metafrontier. Our findings contribute to the growing literature on customs efficiency measurement.
Journal: Applied Economics
Pages: 796-811
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2172521
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2172521
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# input file: RAEC_A_2288066_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Jingjing Zhao
Author-X-Name-First: Jingjing
Author-X-Name-Last: Zhao
Author-Name: Zongye Huang
Author-X-Name-First: Zongye
Author-X-Name-Last: Huang
Title: Mobile payments and crime: evidence from China
Abstract:
Using a policy change in 2016 as a natural experiment, we employ a Difference-in-Difference (DID) model to analyse the effects of mobile payments development on crime rates in Chinese prefectures from 2015 to 2019. Our findings indicate that mobile payments expansion has a significant negative effect on theft, with the reduction of residents’ cash holdings serving as a potential mechanism. However, we find no significant impact on non-economic crimes like sexual assault and murder. This study provides evidence supporting the role of policies and technologies enabling mobile payments development in deterring crime and enhancing social security.
Journal: Applied Economics
Pages: 765-778
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2288066
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2288066
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# input file: RAEC_A_2170970_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Title: The risks of trading on cryptocurrencies: A regime-switching approach based on volatility jumps and co-jumping behaviours
Abstract:
Previous research has shown volatility jumps and co-jumping behaviours in cryptocurrency markets. Motivated by these findings, we employ the herding effect and financial contagion channel to outline a theoretical framework of volatility-state-dependent correlations in cryptocurrency markets. We show that digital currency markets are more strongly correlated when experiencing an identical volatility regime, which echoes co-jumping behaviours addressed by the literature. Moreover, the strong correlation that occurs when the paired cryptocurrencies simultaneously experience a high volatility regime results in the least effectiveness of diversification in terms of a minimum portfolio risk reduction. Last but not least, the proposed state-dependent approach in this study proves effective at the task of risk forecasting and risk reduction for cryptocurrency portfolios, beyond the bivariate GARCH-based models, which are a pure and simple time-dependent approach.
Journal: Applied Economics
Pages: 779-795
Issue: 7
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2170970
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2170970
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# input file: RAEC_A_2174498_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Sezard Timbi
Author-X-Name-First: Sezard
Author-X-Name-Last: Timbi
Author-Name: Zedou Abdala
Author-X-Name-First: Zedou
Author-X-Name-Last: Abdala
Title: The effect of Financial Development on Pro-Poor Growth: evidence from Sub-Saharan African Countries
Abstract:
This paper extends the empirical analysis establishing the significant and positive/negative influence of finance on growth/poverty by examining the contribution of financial development to pro-poor growth. We investigate the relationship between financial development and pro-poor growth in a panel of 29 countries from sub-Saharan Africa over the period 1994–2019. We focus on the vast majority income as the main indicator of pro-poor growth. We use the recent financial development index as a measure of financial development. Using Pooled Mean Group-ARDL estimation in a dynamic heterogeneous panel framework, we obtain the following results: (i) from linear analysis, there is a positive and significant effect of financial access, financial efficiency and the overall financial development index on pro-poor growth in the short run, while in the long run, only financial efficiency affects negatively and significantly pro-poor growth; (ii) results show that the nonlinear relation is not verified in the short run, while in the long run, there is an inverted U-shaped relationship between the financial development index, financial access and financial depth and pro-poor growth. This suggests that too much finance can be detrimental to pro-poor growth in SSA. Financial inclusion of the poor combined with governance is necessary to improve pro-poor growth.
Journal: Applied Economics
Pages: 861-879
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174498
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174498
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Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:861-879
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# input file: RAEC_A_2174500_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Tore Dubbert
Author-X-Name-First: Tore
Author-X-Name-Last: Dubbert
Title: Stochastic debt sustainability analysis using time-varying fiscal reaction functions - an agnostic approach to fiscal forecasting
Abstract:
This paper presents a model-based approach for stochastic primary balance and public debt simulations to assess fiscal sustainability in selected OECD countries. Fiscal behaviour is modelled by means of a fiscal reaction function with time-varying coefficients, which is then, together with a time-varying coefficient vector autoregression, embedded in a stochastic debt sustainability analysis framework. In a pseudo-out-of-sample forecasting exercise using vintage datasets, the model is evaluated against its frequently used fixed coefficient pendant and the European Commission’s Economic Forecasts at different horizons. The results indicate that stochastic debt sustainability analyses based on time-varying fiscal reaction functions and vector autoregressions perform competitively in terms of mean squared error and forecast bias at different horizons, especially with respect to public debt as well as short-term primary balance forecasts. Thus, models of this sort should be considered for complementary use at policy institutions, using them jointly with more ‘discretionary’ approaches to fiscal sustainability analysis.
Journal: Applied Economics
Pages: 901-917
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174500
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174500
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# input file: RAEC_A_2288041_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Marius Huguet
Author-X-Name-First: Marius
Author-X-Name-Last: Huguet
Author-Name: Xavier Joutard
Author-X-Name-First: Xavier
Author-X-Name-Last: Joutard
Author-Name: Lionel Perrier
Author-X-Name-First: Lionel
Author-X-Name-Last: Perrier
Title: Patient preferences, referral process, and access to specialized care. Is patient choice constrained?
Abstract:
In most developed countries, patients have been encouraged to elect their preferred choice of health care provider. However, this is different for specialized care, where the patient’s referral could be defined as a two-stage decision process and their options are pre-selected by their general practitioner (GP). In this study, we estimate patient preferences while controlling for the pre-selection procedure, and we investigate whether patients are actively choosing their provider for cancer care. The French national hospital discharge database (Programme de Médicalisation des Systèmes d’Information, PMSI – MCO 2017) has been used for investigation. We estimated a multinomial choice model when choice sets are in fact unobserved, which is assumed to identify patient preferences, in a revealed preferences framework. Our findings provide evidence that patients consider factors other than distance to select their provider. The patient – hospital distance as well as the specialization profile of providers appears to be internalized in the pre-selection process, while patients rather consider waiting times, hospital quality, and other provider attributes to make their final choice. We also found that patients would be treated in higher-quality hospitals if they had the opportunity to choose among all available providers.
Journal: Applied Economics
Pages: 978-996
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2288041
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2288041
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# input file: RAEC_A_2174499_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Muneer Shaik
Author-X-Name-First: Muneer
Author-X-Name-Last: Shaik
Author-Name: George Varghese
Author-X-Name-First: George
Author-X-Name-Last: Varghese
Author-Name: Vinodh Madhavan
Author-X-Name-First: Vinodh
Author-X-Name-Last: Madhavan
Title: The dynamic volatility connectedness of global financial assets during the Ebola & MERS epidemic and the COVID-19 pandemic
Abstract:
We investigate the dynamic volatility connectedness of regional stocks, gold, Bitcoin, oil, and uncertainty index related to infectious diseases for the period from January 2014 to June 2022. We investigate the connectivity during Ebola & MERS periods, the normal period, the COVID-19 period and the full sample period. We find that the regional stock indices of the US, Europe, Africa and Latin America are net volatility transmitters whereas regional indices of Asia Pacific, Middle East and North Africa, and other assets like gold, oil and Bitcoin are net volatility recipients throughout the sample periods. By employing the TVP-VAR-based dynamic connectedness approach, we find the temporal evolution of system-wide total connectedness and pair-wise connectedness of financial assets to exhibit higher intensity of volatility spillover during the COVID-19 pandemic as compared to other sub-sample periods. We further observe, based on quantile connectedness approach, that the degree of dynamic connectedness is strong and significant across all the quantile spectrums only during the COVID-19 period. We observe that the safe haven characteristics of assets like gold, oil and Bitcoin diminish during the COVID-19 period due to strong dynamic connectedness with regional stock indices. Our findings have implications for policymakers, investors and portfolio managers in better risk management during periods of health epidemics and pandemics.
Journal: Applied Economics
Pages: 880-900
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174499
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174499
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Handle: RePEc:taf:applec:v:56:y:2024:i:8:p:880-900
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# input file: RAEC_A_2174934_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Peng Huang
Author-X-Name-First: Peng
Author-X-Name-Last: Huang
Author-Name: Yue Lu
Author-X-Name-First: Yue
Author-X-Name-Last: Lu
Author-Name: Frank Scrimgeour
Author-X-Name-First: Frank
Author-X-Name-Last: Scrimgeour
Title: Environmental determinants of cross-border mergers and acquisitions: evidence from the global agricultural and food sector
Abstract:
We examine the effect of several agricultural factors in determining the likelihood of cross-border mergers and acquisitions (M&As) in the global agricultural and food sector. We find that, better acquirer (target) country agricultural resources, productivity, and environments are associated with lower (higher) likelihood of cross-border M&As. Further analyses suggest that these agricultural factors have similar though weaker effects in non-agricultural deals. Overall, we highlight the important roles played by such agricultural factors in determining cross-border M&As, especially in the agricultural and food sector.
Journal: Applied Economics
Pages: 956-977
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174934
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174934
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# input file: RAEC_A_2174931_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Dung Thi Thuy Nguyen
Author-X-Name-First: Dung Thi Thuy
Author-X-Name-Last: Nguyen
Author-Name: Ivan Diaz-Rainey
Author-X-Name-First: Ivan
Author-X-Name-Last: Diaz-Rainey
Author-Name: Helen Roberts
Author-X-Name-First: Helen
Author-X-Name-Last: Roberts
Author-Name: Minh Le
Author-X-Name-First: Minh
Author-X-Name-Last: Le
Title: The impact of natural disasters on bank performance and the moderating role of financial integration
Abstract:
Using a sample of East Asian banks covering the period 1999–2014, this paper analyses the impact of natural disasters on commercial bank performance and how financial integration moderates this relationship. A dynamic GMM model reveals that natural disasters significantly lower deposit ratios but have no contemporaneous relationship with liquidity, credit risk, profitability and default risk. There is also evidence of a lagged effect of disasters, increasing deposits and lowering liquidity one year after the event. Furthermore, foreign banking claims, specifically those extended by regional Asian lenders, help to alleviate the deposits decline in the aftermath of natural disasters. These baseline findings are mainly driven by severely affected countries. Overall, the paper highlights the role of commercial bank deposits and foreign banking claims as sources of finance for post-disaster recovery. In particular, the resilience of Asian foreign claims in the event of natural disasters provides evidence to support intra-regional financial integration in East Asia.
Journal: Applied Economics
Pages: 918-940
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174931
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# input file: RAEC_A_2174932_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jianqiang Sun
Author-X-Name-First: Jianqiang
Author-X-Name-Last: Sun
Author-Name: Fahmida Mostafiz
Author-X-Name-First: Fahmida
Author-X-Name-Last: Mostafiz
Author-Name: Yumei Cai
Author-X-Name-First: Yumei
Author-X-Name-Last: Cai
Author-Name: Fujing Yang
Author-X-Name-First: Fujing
Author-X-Name-Last: Yang
Title: Cultural distance, language dissimilarity and trade disputes
Abstract:
In this paper, we investigate the role of cultural distance in international trade disputes by using a hand-collected dataset of 535 World Trade Organization trade dispute cases covering 158 countries. We find that cultural distance significantly increases the probability of trade disputes and the willingness of a country to initiate a trade complaint. Country pairs with an additional unit of cultural distance measured directly by the Hofstede culture indices have an average 0.18% higher probability of being involved in a trade dispute. Country with a unit farther cultural distance to its trade partner has an average 0.18% higher probability of filing a trade complaint. We further measure cultural distance indirectly from the perspective of language dissimilarity and find that country pairs using a common official language other than their spoken or native language have an average 0.55% higher probability of trade disputes. Cultural costs and cultural protectionism the possible mechanisms are analysed in a general pattern. This study provides a cultural perspective for trade conflict resolution.
Journal: Applied Economics
Pages: 941-955
Issue: 8
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174932
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174932
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# input file: RAEC_A_2244249_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jiajun Lan
Author-X-Name-First: Jiajun
Author-X-Name-Last: Lan
Author-Name: Yinghao Pan
Author-X-Name-First: Yinghao
Author-X-Name-Last: Pan
Author-Name: Yingjie Yu
Author-X-Name-First: Yingjie
Author-X-Name-Last: Yu
Title: The role of digital financial inclusion in increasing fertility intentions: evidence from China
Abstract:
Digital financial inclusion is essential for promoting regional development, but its impact on demographic change requires further investigation. Using data from the Chinese General Social Survey (CGSS) between 2012 and 2017, this study provides empirical evidence on how the growth of digital financial inclusion affects fertility intentions in China. The results indicate that a one percent increase in the provincial-level digital financial inclusion index is associated with a 0.136% increase in fertility intentions. These findings hold across different components of digital financial inclusion and are robust to instrumental variable approaches. Moreover, the study shows that the expansion of digital financial inclusion has a more significant effect on households in low-income groups, central and western regions of China, and women with low educational attainment. These results underscore the importance of digital financial inclusion in addressing population declines worldwide.
Journal: Applied Economics
Pages: 1090-1108
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2244249
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2244249
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# input file: RAEC_A_2174936_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Phuong Anh Nguyen
Author-X-Name-First: Phuong Anh
Author-X-Name-Last: Nguyen
Author-Name: Nhu Phuong Nguyen
Author-X-Name-First: Nhu Phuong
Author-X-Name-Last: Nguyen
Author-Name: Huu Minh Duc Le
Author-X-Name-First: Huu Minh Duc
Author-X-Name-Last: Le
Title: Systemic risk and financial system network using financial risk meter: the case of Vietnam
Abstract:
In the financial market, systemic risk is defined as the possibility that an event at the company level could trigger severe instability or collapse of an entire industry or the whole economy. Thus, understanding systemic risk is crucial for the financial institutions, large corporations, investors and regulators. This article investigates systemic risk and spillover effect using the new Financial Risk Meter ($$FRM$$FRM) index, which is obtained from running quantile linear regression and Least Absolute Shrinkage and Selection Operator ($$LASSO$$LASSO) method. The $$FRM$$FRM index is obtained to identify the highly risky periods, the contributors to systemic risk and the potential activators of spillover effect. Moreover, interconnection between firms can be visualized as a network. We use a data set consisting of daily stock returns from 35 financial institutions and real estate firms in Vietnam, combined with 4 macroeconomic variables over the period from November 2011 to December 2020. The findings indicate that over the considered period, some detected highly risky periods are 2012, 2018 and 2020, probably due to the non-performing loan crisis in Vietnam, US-China trade war and global COVID-19 outbreak. Some active activators of risk spillover effect are also identified.
Journal: Applied Economics
Pages: 1012-1034
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174936
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174936
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# input file: RAEC_A_2174937_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Long Wang
Author-X-Name-First: Long
Author-X-Name-Last: Wang
Title: Political cycle and effective corporate tax rate: evidence from China
Abstract:
This research aims to investigate the changing of effective corporate tax rate during the political cycle of Provincial Party Congresses with the data from Chinese industrial businesses from 1998 to 2009. The study shows that the effective tax rate for enterprises fluctuates with the political cycle of Provincial Party Congresses. The effective tax rate, in particular, tends to rise in the year before and during the Provincial Party Congresses, then decline year after year. Further study reveals variation in the impact of political cycles on officials and enterprises with various characteristics; for example, the impact of the corporation effective tax rate is more obvious for male officials, private firms, and so on. At the same time, the paper does not find a significant age ‘ceiling effect’ among prefecture-level officials in China. And the regional rule of law construction does not have a significant effect on the political cyclicality of corporate effective tax rates, whereas the political cyclicality of effective corporate tax rates is more pronounced in regions with higher government investment intensity. Finally, this paper puts forward policy recommendations such as improving officials’ promotion and assessment mechanisms and optimizing the government’s policy implementation.
Journal: Applied Economics
Pages: 1035-1048
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174937
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174937
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# input file: RAEC_A_2174940_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Caihong Tang
Author-X-Name-First: Caihong
Author-X-Name-Last: Tang
Author-Name: Anitha Rosland
Author-X-Name-First: Anitha
Author-X-Name-Last: Rosland
Author-Name: Jie Li
Author-X-Name-First: Jie
Author-X-Name-Last: Li
Author-Name: Rizwana Yasmeen
Author-X-Name-First: Rizwana
Author-X-Name-Last: Yasmeen
Title: The comparison of bilateral trade between China and ASEAN, China and EU: from the aspect of trade structure, trade complementarity and structural gravity model of trade
Abstract:
This article mainly compares China’s bilateral trade relation with the Association of Southeast Asian Nations (ASEAN) and with the European Union (EU), mainly from the perspective of China. We make the trade relation comparison in terms of trade volume and structure, trade complementarity index and impact factors on bilateral trade flow. We find the following results: (1) China mainly exports high-tech electronic and electrical and medium-tech products to ASEAN, and high-tech electronic and electrical and low-tech manufactures to EU yet imports high-tech electronic and electrical products from ASEAN and medium-tech products from EU. (2) China has strong competitiveness in low-tech manufactures and high-tech electronic and electrical area yet comparatively low competitiveness in medium-tech area; (3) China has high trade complementarity with EU in low-tech area and high trade complementarity with ASEAN in high-tech electronic and electrical area; (4) Based on structural gravity model of trade, the GDP per capita, monetary freedom, trade freedom and human development index have significant impacts on China-ASEAN and China-EU bilateral trade; WTO membership has impact on China’s trade with ASEAN yet not with EU; distance has impact on China’s trade with EU yet not with ASEAN.
Journal: Applied Economics
Pages: 1077-1089
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174940
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174940
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# input file: RAEC_A_2174935_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Caroline Perrin
Author-X-Name-First: Caroline
Author-X-Name-Last: Perrin
Author-Name: Laurent Weill
Author-X-Name-First: Laurent
Author-X-Name-Last: Weill
Title: Girls will be girls? The gendered effect of economic policy uncertainty on corporate investment
Abstract:
We examine the effect of CEO gender on the relationship between economic policy uncertainty (EPU) and corporate investment. Using the newspaper-based EPU index developed by Baker, Bloom, and Davis (2016), we perform an empirical investigation on firm-level data of more than 38,000 firms from eight European countries for 2010–2019. We find evidence that higher EPU is associated with higher corporate investment. However, we show that this beneficial effect of economic policy uncertainty is lower when the firm CEO is a woman. We explain this finding by the higher risk aversion of women relative to men. Our work contributes to the debate on the impact of EPU on firm corporate decisions by bringing upfront the influence of CEO gender.
Journal: Applied Economics
Pages: 997-1011
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174935
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174935
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Handle: RePEc:taf:applec:v:56:y:2024:i:9:p:997-1011
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# input file: RAEC_A_2174939_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Zahra Hatami
Author-X-Name-First: Zahra
Author-X-Name-Last: Hatami
Author-Name: Prasad Chetti
Author-X-Name-First: Prasad
Author-X-Name-Last: Chetti
Author-Name: Hesham Ali
Author-X-Name-First: Hesham
Author-X-Name-Last: Ali
Author-Name: David Volkman
Author-X-Name-First: David
Author-X-Name-Last: Volkman
Title: A novel population analysis approach for analyzing financial markets under crisis - a focus on excess returns of the US stocks under 9/11 and COVID-19
Abstract:
Since the seminal research of Harry Markowitz, the importance of Pareto Optimal portfolios and asset correlation has been a foundation of modern portfolio theory. Recent researchers have expanded on Markowitz-efficient portfolios using advanced statistical methods to identify correlations among assets, while other researchers have demonstrated the decline in asset correlations during periods of market volatility and economic shocks. We extend this research by applying a novel approach based on the concept of population analysis to study the correlation of assets under major economic shocks. We use similarity networks to investigate the impact of the COVID-19 pandemic on various sectors, and then compare it with the behavioural patterns associated with the 9/11 event. The population analysis revealed that during the current pandemic, the behavioural pattern of the finance and energy sectors was significantly different than other sectors. Similar results were found for the finance and the industrial sectors during the 9/11 attacks.
Journal: Applied Economics
Pages: 1063-1076
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174939
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174939
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# input file: RAEC_A_2174938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Hugues Kouassi Kouadio
Author-X-Name-First: Hugues Kouassi
Author-X-Name-Last: Kouadio
Author-Name: Romain Kouakou N’Guessan
Author-X-Name-First: Romain Kouakou
Author-X-Name-Last: N’Guessan
Title: Do educational inequalities between marital partners influence the empowerment of educated women in ECOWAS?
Abstract:
In an environment where the question of women’s empowerment is a burning issue and where inequalities against women in education persist even though they are increasingly educated, it made sense to study the effect of educational inequalities between marital partners on women’s empowerment. Thus, using the latest rounds of the Demographic and Health Survey (DHS) women’s file from the four major West African economies including Nigeria (2013), Côte d’Ivoire (2011–12), Ghana (2014) and Senegal (2017), and then using a combination of internal and external instruments to better address issues related to the endogeneity of variables, we show that strong gender disparities in education negatively influence women’s financial and non-financial empowerment. The former is seen as the power of women to make decisions about spending their own and their spouse’s income and major household purchases. The second is the woman’s power to decide on health-related expenses and visits to relatives. Several other socio-demographic variables were likely to influence women’s empowerment. These include the woman’s household social status, age, labour market participation and religion.
Journal: Applied Economics
Pages: 1049-1062
Issue: 9
Volume: 56
Year: 2024
Month: 02
X-DOI: 10.1080/00036846.2023.2174938
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2174938
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# input file: RAEC_A_2176448_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: I-Cheng Yeh
Author-X-Name-First: I-Cheng
Author-X-Name-Last: Yeh
Title: Comparisons of residual income model and growth value model
Abstract:
Both the Residual Income Model (RIM) and Growth Value Model (GVM) combine the income-based approach and asset-based approach, and blend with the market-based approach, which employs regression analysis and market data to determine parameters in the models. Hence, they have more comprehensiveness than most approaches in the literature. The theoretical and empirical comparisons of RIM and GVM may have profound meaning to stock intrinsic value. The theoretical comparison shows that the ROE-P/B relationship is linear in RIM and power in GVM. When ROE equals the required return rate, whosever P/B is 1.0. When the ROE is small, the P/B estimated by GVM is still greater than 0; however, it may be negative by RIM, which is not reasonable. In a normal range (0 ~ 20%) of ROE, the two curves are rather close to each other. The empirical study showed that the GVM can more reasonablly fit the market data, especially when the ROE is rather small or great.
Journal: Applied Economics
Pages: 1327-1345
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176448
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176448
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# input file: RAEC_A_2176446_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kyu Hyung Park
Author-X-Name-First: Kyu Hyung
Author-X-Name-Last: Park
Author-Name: Leonie Tickle
Author-X-Name-First: Leonie
Author-X-Name-Last: Tickle
Author-Name: Henry Cutler
Author-X-Name-First: Henry
Author-X-Name-Last: Cutler
Title: How temporal patterns of medication adherence to antidepressants, bisphosphonates and statins are associated with healthcare cost
Abstract:
We evaluate benefits of measuring temporal patterns of medication use using group-based trajectory modelling (GBTM) by finding associations between medication adherence (MA) and healthcare costs for which inconsistent results have been reported. We conducted a retrospective cohort study of 9,287, 1,660 and 10,242 users of antidepressants, bisphosphonates and statins, respectively, between 2012 and 2016, who participated in the 45 and Up Study in New South Wales, Australia. Associations between MA and subsequent 1-year healthcare cost components from generalized linear models and two-part models were compared across medications and MA measure types including GBTM and proportion of days covered (PDC). Compared to adherers, antidepressant users with declining adherence showed increased inpatient costs ($643 at p < 0.05). Bisphosphonate users with declining and consistently low adherence showed decreased osteoporotic inpatient costs ($387 at p < 0.05 and $419 at p < 0.05, respectively). All types of nonadherence were associated with reduced cost of the respective medications. GBTM revealed relationships between specific nonadherence types and healthcare costs, even in cases where no relationship was identified using the combined nonadherence PDC measure. With additional insights into the dynamics of nonadherence, GBTM could help clinicians and health policymakers design effective MA interventions, leading to improved health outcomes and pharmaceutical use.
Journal: Applied Economics
Pages: 1283-1308
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176446
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Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1283-1308
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# input file: RAEC_A_2175776_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kangjuan Lv
Author-X-Name-First: Kangjuan
Author-X-Name-Last: Lv
Author-Name: Siwei Zhu
Author-X-Name-First: Siwei
Author-X-Name-Last: Zhu
Author-Name: Ran Liang
Author-X-Name-First: Ran
Author-X-Name-Last: Liang
Author-Name: Ye Zhao
Author-X-Name-First: Ye
Author-X-Name-Last: Zhao
Title: Environmental regulation, breakthrough technological innovation and total factor productivity of firms-- evidence from emission charges of China
Abstract:
As an effective means of addressing environmental externalities, market-based environmental regulation inevitably has potential effects on the economy. Based on Porter’s theory, we investigate how emission charges affect firms’ total factor productivity and explore the moderating role of firms’ breakthrough technological innovation. Our findings reveal the moderating effect of breakthrough technological innovation on the total factor productivity enhancement of the emission fee by looking at Chinese A-share listed firms with heavy pollution from 2011 to 2020. Our mechanism tests suggest that emission fees and breakthrough technological innovation increase firms’ total factor productivity by enhancing firms’ green innovation. In addition, our heterogeneity analysis shows that emission charges and breakthrough technology innovation effectively increase total factor productivity only for state-owned firms, and the effect on total factor productivity of non-state-owned firms is insignificant. Our findings suggest that implementing market-based environmental regulations and incentives for firms to embark on breakthrough technological innovation effectively increases firms’ total factor productivity.
Journal: Applied Economics
Pages: 1235-1249
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2175776
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175776
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# input file: RAEC_A_2176447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Derek Asuman
Author-X-Name-First: Derek
Author-X-Name-Last: Asuman
Author-Name: Ulf-G. Gerdtham
Author-X-Name-First: Ulf-G.
Author-X-Name-Last: Gerdtham
Author-Name: Ann I. Alriksson-Schmidt
Author-X-Name-First: Ann I.
Author-X-Name-Last: Alriksson-Schmidt
Author-Name: Martin Nordin
Author-X-Name-First: Martin
Author-X-Name-Last: Nordin
Author-Name: Johan Jarl
Author-X-Name-First: Johan
Author-X-Name-Last: Jarl
Title: Labour market consequences of an early-onset disability: the case of cerebral palsy
Abstract:
The labour market consequences of early-onset or congenital disabilities have received little attention in the literature. In this paper, we study the consequences of cerebral palsy (CP), a lifelong early onset disability, and pathways through which it affects labour outcomes. We use data from multiple linked Swedish National Population Registers between 1990 and 2015 and apply both regression and mediation analysis. Our results show, as expected, strong negative consequences of CP on labour outcomes, and that the consequences have increased over time. The social insurance system, we find, compensates for some of the losses through non-work-related benefits. The results also suggest that the direct effects of CP per se have prominent impact on labour market outcomes. Thus, given the same level of mediators, persons with CP will have lower labour outcomes compared to persons without CP. Our results draw attention to the widening labour market consequences of CP in Sweden.
Journal: Applied Economics
Pages: 1309-1326
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176447
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176447
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# input file: RAEC_A_2175775_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Lauren Calimeris
Author-X-Name-First: Lauren
Author-X-Name-Last: Calimeris
Author-Name: Christina Peters
Author-X-Name-First: Christina
Author-X-Name-Last: Peters
Title: Evidence on birth spacing and child cognition from Indonesia
Abstract:
Research from the medical and social science literature has found that spacing births closely together leads to adverse health and socioeconomic outcomes for the younger child. More recent evidence using inter-family comparisons is challenging the validity of those results. However, while inter-family comparisons allow for time-invariant unobservable heterogeneity across families, they cannot fully control for changes in families that occur over time and may affect both decisions about birth intervals as well as child outcomes. To our knowledge, this paper provides the first examination of the effects of birth spacing on later childhood cognitive outcomes that accounts for both time-invariant and time-varying heterogeneity in the same models. Instrumental variables estimations on data from Indonesia indicate that younger siblings perform significantly better on maths assessment exams when they are spaced farther apart from their immediately older sibling. This effect appears to be concentrated among the poorest and least educated households. The data thus suggest that close spacing may be detrimental to the socioeconomic outcomes of the younger sibling.
Journal: Applied Economics
Pages: 1221-1234
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2175775
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175775
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# input file: RAEC_A_2175777_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Michiel Bijlsma
Author-X-Name-First: Michiel
Author-X-Name-Last: Bijlsma
Author-Name: Carin van der Cruijsen
Author-X-Name-First: Carin
Author-X-Name-Last: van der Cruijsen
Author-Name: Nicole Jonker
Author-X-Name-First: Nicole
Author-X-Name-Last: Jonker
Title: Not all data are created equal - Data sharing and privacy
Abstract:
The COVID-19 pandemic has increased our online presence and unleashed a new discussion on sharing sensitive personal data. Upcoming European legislation will facilitate data sharing in several areas, following the lead of the revised payments directive (PSD2), which enables payments data sharing with third parties. However, little is known about what drives consumers’ data sharing preferences, as these may differ according to the type of data, type of usage or type of firm using the data. Using a discrete-choice experiment among a representative group of Dutch consumers, we find that next to health data, people are hesitant to share their financial data on payments, wealth and pensions, compared to other types of consumer data. Second, consumers are especially cautious about sharing their data when they are not used anonymously. Third, consumers are more hesitant to share their data with BigTechs, webshops and insurers than they are with banks. Fourth, data sharing choices depend on financial rewards. Last, we show that attitudes towards data usage depend on personal characteristics, consumers’ digital skills, online behaviour and their trust in the firms using the data.
Journal: Applied Economics
Pages: 1250-1267
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2175777
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175777
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Handle: RePEc:taf:applec:v:56:y:2024:i:11:p:1250-1267
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# input file: RAEC_A_2175778_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Cesario Mateus
Author-X-Name-First: Cesario
Author-X-Name-Last: Mateus
Author-Name: Irina Mateus
Author-X-Name-First: Irina
Author-X-Name-Last: Mateus
Author-Name: Natasa Todorovic
Author-X-Name-First: Natasa
Author-X-Name-Last: Todorovic
Title: Searching for mutual fund winners? the strategy is to outbid both, the benchmark and the peer group
Abstract:
Standard Fama-French-Carhart models define ‘winners’ as funds that generate the highest excess returns given the factor risks involved; however, they do not provide information on whether such winners are outperforming their prospectus benchmark or their peer group. In addition, existing literature relying on these models, by and large, does not find evidence of persistence in performance. In this paper, we propose a two-stage procedure that allows investors to select ‘true’ winners(losers) which generate the highest factor-risk-adjusted performance relative to the benchmark and the peer group simultaneously. Utilizing both adjustments at the same time results in a strong predictive ability, leading to a selection of funds that persist in performance. Our true winner funds have statistically significant superior benchmark-adjusted alphas, peer group adjusted alphas and Sharpe ratios one year ahead, which are significantly different from those generated by the true loser funds. The results are robust to extended investment horizon, and alpha estimation method, and they are not driven by outliers, size of fund-sorts, or any particular period within our sample.
Journal: Applied Economics
Pages: 1268-1282
Issue: 11
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2175778
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2175778
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# input file: RAEC_A_2176450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xiaofang Jia
Author-X-Name-First: Xiaofang
Author-X-Name-Last: Jia
Author-Name: Baojian Xie
Author-X-Name-First: Baojian
Author-X-Name-Last: Xie
Author-Name: Xingan Wang
Author-X-Name-First: Xingan
Author-X-Name-Last: Wang
Title: The impact of network infrastructure on enterprise digital transformation ——A quasi-natural experiment from the “broadband China” Strategy
Abstract:
In this paper, a multi-period difference-in-difference model is constructed to investigate the impact of network infrastructure on enterprise digital transformation. The results show that network infrastructure has effectively promoted the digital transformation of enterprises. Meanwhile, as the scale of network infrastructure construction expands, the role of network infrastructure in promoting enterprise digital transformation will be enhanced. Based on the mechanism analysis, network infrastructure promotes enterprise digital transformation through two channels: easing corporate financing constraints and improving core technical capabilities. Furthermore, the role of network infrastructure in enterprise digital transformation is not invariable, the effect is more pronounced in non-state-owned enterprises, growth enterprises, manufacturing enterprises, and enterprises located in developed cities.
Journal: Applied Economics
Pages: 1363-1380
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176450
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176450
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Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1363-1380
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# input file: RAEC_A_2257033_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Di Gong
Author-X-Name-First: Di
Author-X-Name-Last: Gong
Author-Name: Shiwei Hu
Author-X-Name-First: Shiwei
Author-X-Name-Last: Hu
Author-Name: Zongxin Qian
Author-X-Name-First: Zongxin
Author-X-Name-Last: Qian
Title: Banking crises and exporter dynamics
Abstract:
This article examines the effects of systemic banking crises on exporter dynamics using exporter data at the country-industry level from the Exporter Dynamics Database (EDD). By considering industries with varying levels of external finance dependence, we are able to capture the heterogeneous impacts of banking crises. Our results demonstrate that banking crises lead to a decrease in the number of successful market entries, a reduction in export market concentration, and a slowdown in both product dynamics and destination dynamics. These findings are robust when accounting for other financial crises, industry characteristics, and potential endogeneity concerns. Overall, our empirical evidence confirms the detrimental impact of banking crises on the extensive margin of exports.
Journal: Applied Economics
Pages: 1463-1487
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2257033
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2257033
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# input file: RAEC_A_2176449_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yun Jung Kim
Author-X-Name-First: Yun Jung
Author-X-Name-Last: Kim
Author-Name: Mei Quan
Author-X-Name-First: Mei
Author-X-Name-Last: Quan
Title: Financing the R&D investment of Chinese firms: state-owned versus private firms
Abstract:
We investigate the effect of financing constraints on the R&D investment of Chinese listed firms for the period 2010–2020. The sample is divided into state-owned versus private firms, which differ substantially in R&D patterns, financial structures, and other characteristics. We find that, in both state-owned and private firms, internal cash flow significantly affects R&D investment, suggesting the presence of binding financing constraints. Both state-owned and private firms actively manage liquid assets to smooth R&D spending. Debt finance is insignificant for both state-owned and private firms. New stock issues have a significant positive effect on R&D in private firms only, not in state-owned firms. Given that the contribution of private firms to aggregate R&D is increasing, stable stock market conditions may have an important aggregate impact on R&D.
Journal: Applied Economics
Pages: 1347-1362
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176449
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176449
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Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1347-1362
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# input file: RAEC_A_2176453_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Bing Liu
Author-X-Name-First: Bing
Author-X-Name-Last: Liu
Author-Name: Lihong Zhang
Author-X-Name-First: Lihong
Author-X-Name-Last: Zhang
Author-Name: Ming Zhou
Author-X-Name-First: Ming
Author-X-Name-Last: Zhou
Title: Portfolio selections for insurers with ambiguity aversion: minimizing the probability of ruin
Abstract:
In this paper, we investigate the impacts of model misspecification on the insurer’s investment behaviours. Model misspecification comes from either the financial market or insurance business due to economic fluctuation. From the risk control point of view, we assume that an insurer has ambiguity aversion and we study the robust optimal investment strategy for the insurer under several settings. As a benchmark, we firstly obtain the optimal investment strategy for the insurer without considering model misspecification. Then, by assuming that model misspecification only exists in the financial market, we obtained the robust optimal investment strategy by solving the corresponding Hamilton–Jacobi–Bellman (HJB) equation under the objective of minimizing the probability of ruin. The results tells us the insurer’s ambiguity aversion leads to a more conservative investment behaviour. At last, we incorporate the model misspecification for both financial market and insurance business in a general framework. The robust optimal investment is also obtained and we find that the investment is enlarged due to the insurer’s ambiguity aversion on the insurance business because of the motivation of ambiguity hedging. The numerical examples display that different ambiguity aversion level on the financial market and insurance business have different impacts on the robust investment strategy.
Journal: Applied Economics
Pages: 1423-1439
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176453
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176453
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# input file: RAEC_A_2176451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ana Rita Gomes
Author-X-Name-First: Ana Rita
Author-X-Name-Last: Gomes
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Paulo B. Vasconcelos
Author-X-Name-First: Paulo B.
Author-X-Name-Last: Vasconcelos
Title: Impact of refugees on wages and economic growth in a model with inflation
Abstract:
This paper assesses how the influx of skilled and unskilled refugees affects the technological-knowledge-bias and, consequently, the skill premium in host communities, looking in particular at the case of Poland following the war in Ukraine. We use a dynamic endogenous R&D general equilibrium model, in which labour endowments are related to the direction (or bias) of technological knowledge, which in turn drives the dynamics of key economic variables. With price channel dominance, the shock of the war causes an increase in the technological-knowledge-bias and thus the skills premium, given the increased supply of unskilled labour. Fiscal policy, driven by country governments and materialized through direct and indirect subsidies to R&D activity, has stronger effects on the growth rate when applied to unskilled workers. Monetary policy, driven by the central bank through a decline in the nominal interest rate, influences R&D activity through liquidity constraints and is limited by the zero nominal interest rate. To promote competitiveness and growth, a fiscal policy that subsidizes unskilled workers must be promoted.
Journal: Applied Economics
Pages: 1381-1407
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176451
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176451
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Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1381-1407
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# input file: RAEC_A_2176452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Thiago Christiano Silva
Author-X-Name-First: Thiago Christiano
Author-X-Name-Last: Silva
Author-Name: Rodrigo Batista de Araújo
Author-X-Name-First: Rodrigo Batista de
Author-X-Name-Last: Araújo
Author-Name: Benjamin Miranda Tabak
Author-X-Name-First: Benjamin Miranda
Author-X-Name-Last: Tabak
Title: Real effects of direct cash transfers shocks: evidence from one of the largest social welfare programs in the world
Abstract:
We examine the socio-economic consequences in Brazilian municipalities of one of the world’s largest social welfare programmes – the Bolsa Família. Since the Bolsa Família endogenously targets municipalities with weaker local socio-economic conditions, it becomes challenging to reason about its causal effects on the local economy. We address this endogeneity by exploiting a change in the Bolsa Família regulation in 2012 that established a minimum per capita income of 70 reais for recipient families. Previously, additional financial benefits were available based on the number of children in the family, up to five. Following the change, large families effectively received a positive income shock. We investigate this discontinuity by comparing recipient families of different sizes with income nearing the 70 reais per capita threshold shortly before the shift at the municipality level. Municipalities’ employment, income, and health metrics show consistent and positive results. However, we find no effect on education, which could be explained by the lack of robust education-related conditionalities that Bolsa Família recipients are required to report continuously to enjoy the programme’s benefits.
Journal: Applied Economics
Pages: 1408-1422
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176452
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176452
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Handle: RePEc:taf:applec:v:56:y:2024:i:12:p:1408-1422
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# input file: RAEC_A_2176454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Pratik Goel
Author-X-Name-First: Pratik
Author-X-Name-Last: Goel
Author-Name: Oveis Madadian
Author-X-Name-First: Oveis
Author-X-Name-Last: Madadian
Title: Peer-based performance comparison and tone management
Abstract:
While performance comparison against peers is documented as a key decision-making factor in strategic management, its potential role as a strategic determinant of disclosure tone has so far been overlooked in the literature on narrative disclosures. In this study, we examine whether, and how, peer-based performance comparison (i.e. the comparison of earnings/cash flows of a firm with its peers) affects tone management. Using a measure of tone management based on 10-K filings over 1993–2013, we show that firms with performance falling below the peer-based benchmark engage in greater downward tone management in their earnings-related narrative disclosures, and the extent of this over-pessimism increases the further performance falls below the benchmark. We further document that the observed over-pessimism not only prompts security analysts to revise their earnings forecasts downward, but it is also associated with a higher probability of meeting or beating these forecasts (i.e. expectation management). This is the first study that links tone management with expectation management, in the context of peer-based performance comparison.
Journal: Applied Economics
Pages: 1440-1462
Issue: 12
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176454
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176454
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# input file: RAEC_A_2176457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Qingsong Ruan
Author-X-Name-First: Qingsong
Author-X-Name-Last: Ruan
Author-Name: Jiarui Zhang
Author-X-Name-First: Jiarui
Author-X-Name-Last: Zhang
Author-Name: Dayong Lv
Author-X-Name-First: Dayong
Author-X-Name-Last: Lv
Title: Forecasting exchange rate volatility: is economic policy uncertainty better?
Abstract:
Economic policy uncertainty (EPU) reflects more information related to exchange rate volatility than traditional macroeconomic variables do, and thus may have stronger predictive power in forecasting exchange rate volatility. Based on data from developed and developing economies (including Japan, the United Kingdom, the Euro Area, Brazil, the Russian Federation, India, and China), this paper provides in- and out-of-sample evidence that the EPU differential between two economies outperforms several macroeconomic predictors (for example, GDP growth and volatility of inflation growth) in forecasting exchange rate volatility, which is also supported by a Monte Carlo experiment. Moreover, the mechanism analysis shows that increased EPU differential is associated with increased foreign exchange trading activities and reduced bilateral trade, which helps explain the predictive power of EPU for exchange rate volatility. Furthermore, we find that EPU can predict both long- and short-run components of exchange rate volatility. Our main findings are robust after using alternative empirical proxies or controlling for endogeneity.
Journal: Applied Economics
Pages: 1526-1544
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176457
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176457
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# input file: RAEC_A_2176461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ling Feng
Author-X-Name-First: Ling
Author-X-Name-Last: Feng
Author-Name: Jun Zhang
Author-X-Name-First: Jun
Author-X-Name-Last: Zhang
Title: Can state-owned enterprises enhance enterprise value when they shift focus to core businesses? Empirical evidence on the transfer of ‘three supplies and one industry’ in China
Abstract:
This research theoretically analysed how corporate value is enhanced when Chinese state-owned enterprises (SOEs) shift their focus. In our analysis of Chinese SOEs listed in A-shares from 2013 to 2019, we describe their process of returning to their primary business using the ‘three supply and one industry’ (3S1I) handover policy. We conducted a quasi-natural experiment to study whether refocusing on SOEs can improve their value. The research shows that the policy enhances the efficiency of SOEs, thus increasing their value. These results were particularly evident among local SOEs. Moreover, SOE employees’ social responsibility performance may have a negative moderating effect on efficiency, indicating that excessive social responsibility can lead to a loss in efficiency and a reduction in SOE value. We conclude by discussing why SOEs should prioritize improving economic value and then fulfil social responsibilities to enhance social value through social purchasing and other ways. This study contributes to the literature by providing recommendations on improving the value of SOE from the perspective of ‘transferring 3S1I’ and refocusing.
Journal: Applied Economics
Pages: 1595-1609
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176461
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176461
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# input file: RAEC_A_2176456_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ki Wook Kim
Author-X-Name-First: Ki Wook
Author-X-Name-Last: Kim
Author-Name: Tae Sup Shim
Author-X-Name-First: Tae Sup
Author-X-Name-Last: Shim
Author-Name: Ji Seon Yoo
Author-X-Name-First: Ji Seon
Author-X-Name-Last: Yoo
Title: Can Ethics and Economic Incentives Mitigate Tax preparers’ Aggressive Judgements and Decisions?
Abstract:
We examine whether the personal attribute of ethics and an external economic incentive in the form of a standard tax preparation fee can mitigate tax preparers’ aggressive tax reporting behaviour. We use a structural equation model (SEM) to identify the influential paths of ethics and economic incentives on the aggressiveness of tax preparers. Based on the results of a quasi-experiment involving tax preparers in Korea, we find that ethical attributes both directly and indirectly mitigate aggressive tax reporting by reducing tax preparers’ fear of client dissatisfaction. We then find that the introduction of a standard tax preparation fee does not directly or indirectly suppress the tax aggressiveness of tax preparers. Our study contributes to an integral examination of the effectiveness of both psychological and economic factors on tax preparers’ judgements and decisions.
Journal: Applied Economics
Pages: 1509-1525
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176456
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176456
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Handle: RePEc:taf:applec:v:56:y:2024:i:13:p:1509-1525
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# input file: RAEC_A_2176459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xinni Cai
Author-X-Name-First: Xinni
Author-X-Name-Last: Cai
Author-Name: Ge Yang
Author-X-Name-First: Ge
Author-X-Name-Last: Yang
Author-Name: Xiaojia Zheng
Author-X-Name-First: Xiaojia
Author-X-Name-Last: Zheng
Title: Does the academic profession really matter in board monitoring? Evidence from individual director voting
Abstract:
This study examines the voting behaviour of independent directors from academia based on manually collected voting data. We find that academic independent directors are less likely to dissent on board proposals than other independent directors, especially the directors who have fewer industry-specific experiences or have a relatively higher pay from the focal firm. The academic directors are also more likely to lose board seats after dissension, consistent with their concern of less job security as they are easily replaced. Lastly, although academic directors generally have weaker incentives to vote against insiders, they are more likely to dissent on proposals concerning related-party transactions. Overall, our study sheds new light on the role of academic independent directors in board monitoring effectiveness.
Journal: Applied Economics
Pages: 1564-1580
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176459
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176459
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# input file: RAEC_A_2176455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yanran Wu
Author-X-Name-First: Yanran
Author-X-Name-Last: Wu
Author-Name: Zhongtai Li
Author-X-Name-First: Zhongtai
Author-X-Name-Last: Li
Title: Are active individual investors in mutual funds momentums or contrarians?
Abstract:
We use transaction data of active individual investors in mutual funds to examine whether investors are momentum or contrarian by combining binomial distribution with the multinomial logit model. We find that individual investors adopt different trading strategies in making their purchase and redemption decisions, whereby they act as momentum buyers and contrarian sellers. Different fund styles do not affect investors’ trading decisions based on historical returns, and investors’ trading behaviours in value and dividend funds are consistent. After identifying each investor’s trading strategy, we examine the impact of demographics on trading behaviour for the first time. We find that older individual investors in mutual funds are more likely to be momentums, as are those with stock trading experience. Individual investors with large transaction sizes are more likely to be momentum buyers, while investors of small sizes are contrarian. Our research not only helps managers understand the trading behaviour of individual investors but also provides some help to regulators.
Journal: Applied Economics
Pages: 1489-1508
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176455
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# input file: RAEC_A_2176458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Joshy Jacob
Author-X-Name-First: Joshy
Author-X-Name-Last: Jacob
Author-Name: Nilesh Gupta
Author-X-Name-First: Nilesh
Author-X-Name-Last: Gupta
Author-Name: Balagopal Gopalakrishnan
Author-X-Name-First: Balagopal
Author-X-Name-Last: Gopalakrishnan
Title: Mutual fund asset allocation during COVID-19: evidence from an emerging market
Abstract:
The paper examines the investment decisions of Indian equity mutual funds during various stages of the COVID-19 pandemic with monthly portfolio holdings. We find that funds favoured firms with lower risk, higher financial flexibility, and larger size during the early months of the pandemic. The preference for relatively low-risk firms, which reverses later, suggests a reallocation towards safer assets. Funds also preferred growth firms to value firms as the latter with greater invested capital are more vulnerable to the shock. Institutional investors also favoured group-affiliated firms throughout, reflecting their lower crisis vulnerability. We find that the stocks preferred by funds during the pandemic outperform others in the long run. The paper brings out key firm characteristics that impact mutual fund asset allocation during extreme uncertainty.
Journal: Applied Economics
Pages: 1545-1563
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176458
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# input file: RAEC_A_2176460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Peter Tait
Author-X-Name-First: Peter
Author-X-Name-Last: Tait
Author-Name: Caroline Saunders
Author-X-Name-First: Caroline
Author-X-Name-Last: Saunders
Author-Name: Paul Dalziel
Author-X-Name-First: Paul
Author-X-Name-Last: Dalziel
Author-Name: Paul Rutherford
Author-X-Name-First: Paul
Author-X-Name-Last: Rutherford
Author-Name: Timothy Driver
Author-X-Name-First: Timothy
Author-X-Name-Last: Driver
Author-Name: Meike Guenther
Author-X-Name-First: Meike
Author-X-Name-Last: Guenther
Title: How much less? Estimating price discounts for suboptimal food with environmental and social credence attributes
Abstract:
Price discounting strategies for suboptimal food perform an essential part in reducing food waste. This study provides new information empirically estimating discounts for levels of apple injury and deformity consistent with United States Department of Agriculture definitions using a Discrete Choice Experiment with Californian consumers. Latent Class Modelling identifies consumer segments with differing preferences for injury and deformity, alongside social responsibility and environmental claims. While discounts range substantially across segments, levels of deformity negatively influence choices more than equivalent levels of injury. Required discounts can be reduced by the presence of beneficial credence attributes, particularly an organic claim. We find a segment of respondents indifferent to suboptimal characteristics and requiring no discount to select suboptimal apples. These consumers have stronger preferences for environmental and social attributes, are more likely to be female, more educated, younger and concerned about genetic engineering. Preferences for social responsibility claims vary over the targeted beneficiaries, with programmes focused on workers preferred more overall. Willingness-to-pay for greenhouse gas reductions are relatively diminutive; however, 83% of the respondents support at least moderate reductions. This study contributes to understanding behaviours towards suboptimal food and is beneficial to forming food waste reduction strategies by identifying discount levels across consumer types.
Journal: Applied Economics
Pages: 1581-1594
Issue: 13
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176460
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# input file: RAEC_A_2177591_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Irene González-Rodríguez
Author-X-Name-First: Irene
Author-X-Name-Last: González-Rodríguez
Author-Name: Marta Pascual-Saez
Author-X-Name-First: Marta
Author-X-Name-Last: Pascual-Saez
Author-Name: David Cantarero-Prieto
Author-X-Name-First: David
Author-X-Name-Last: Cantarero-Prieto
Title: The changing health convergence for life expectancy and spatial interactions
Abstract:
Spatial interactions are important to consider issues like health convergence between the European Union countries and Spanish provinces. Health status is measured by a combination of objective health outcome indicators, such as life expectancy: at birth, at age 65, disability-adjusted life expectancy and healthy life expectancy based on self-perceived health. The period analysed differs from one indicator to another considering 1998–2018. There are two forms of convergence: σ-convergence and absolute β-convergence. Furthermore, the Moran Test is performed to disentangle the degree of spatial dependencies and two models of spatial regression are used to include these dependencies in the absolute β-convergence estimation. Our findings suggest that there is a convergence process among European Union countries and the Spanish provinces. On the other hand, β-convergence is higher in women among European countries and in men for Spanish provinces. Nevertheless, the rise of the dispersion means that there is not clear evidence about trends in the period considered. There are two contributions in our research: to achieve an updated vision of health convergence and to incorporate spatial econometrics in Health Economics research. These insights can help to reduce health inequalities.
Journal: Applied Economics
Pages: 1622-1635
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177591
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177591
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# input file: RAEC_A_2176463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Author-Name: Najaf Iqbal
Author-X-Name-First: Najaf
Author-X-Name-Last: Iqbal
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Title: Patterns of unconventional monetary policy spillovers during a systemic crisis
Abstract:
We examine whether the COVID-19 pandemic-induced systemic shocks cause a change in the dynamics of monetary policy spillovers among developed economies. Results from our analysis under the time-varying parameter vector autoregressive model indicate that: (i) variations in monetary policy actions are explained by monetary policy spillovers; (ii) shocks from the COVID-19 pandemic rocketed monetary policy spillovers; (iii) the Euro area and the US chiefly propagate monetary policy shocks to their counterpart developed economies; and (iv) New Zealand and Japan endure the highest monetary policy shocks. Our results evidence the need for synchronized monetary policy actions during systemic crises.
Journal: Applied Economics
Pages: 1611-1621
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2176463
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2176463
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# input file: RAEC_A_2177594_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yong Wang
Author-X-Name-First: Yong
Author-X-Name-Last: Wang
Author-Name: Zaheer Anwer
Author-X-Name-First: Zaheer
Author-X-Name-Last: Anwer
Author-Name: Lijun Cheng
Author-X-Name-First: Lijun
Author-X-Name-Last: Cheng
Author-Name: Wangjie Chen
Author-X-Name-First: Wangjie
Author-X-Name-Last: Chen
Author-Name: Yumeng Miao
Author-X-Name-First: Yumeng
Author-X-Name-Last: Miao
Title: Smart manager and investor effects in offshore financial development: the decisive role of cognitive ability on risk preference
Abstract:
In the aftermath of first world war, offshore finance has garnered the attraction of various quarters. As of 2010, at least USD 21–32 Trillion of unreported private financial wealth, nearly 18% of the aggregate global wealth, was cantered in tax havens. Financial risk management to prevent offshore financial crisis has become an international concern and widely discussed. We examine the dynamic interrelationship between cognitive ability, risk preference and offshore financial development for a global sample of 44 countries for the period 2001–2017 by using simultaneous equation models. The findings reveal that risk preference, as an informal institute, exerts imperceptible influence on offshore financial development. Moreover, as the cognitive ability affects offshore financial development by way of risk preference, there does exist ‘Smart Managers Effect’ and ‘Smart Investors Effect’ determined by the cognitive ability in Offshore Financial Centres. Moreover, our results vindicate the role of ‘Invisible Hand’ of the market during the tension between markets and governments. The study offers a convincing explanation of the impacting path to risk preference, dominated by cognitive ability, on offshore financial development in offshore financial centres from the perspective of the Institutional Economics.
Journal: Applied Economics
Pages: 1652-1670
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177594
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177594
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# input file: RAEC_A_2291096_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Seul-Ki Kim
Author-X-Name-First: Seul-Ki
Author-X-Name-Last: Kim
Author-Name: Young-Chul Kim
Author-X-Name-First: Young-Chul
Author-X-Name-Last: Kim
Title: Single-sex vs. Coeducational schooling: an empirical study on the mental health outcomes of middle school students
Abstract:
Unlike previous literature that mainly examined the cognitive effects of single-sex education, this study investigates its effects on students’ mental health, focusing on depression, suicide-related behaviours, and the various causes of stress. Utilizing a national-level large-scale dataset of middle school students in South Korea and employing an instrument variable approach, we find that attending single-sex schools reduces the probability of depression in female students by about 9.9% points, while no significant effect is observed for male students. Additionally, our research regarding the causes of stress uncovers that single-sex schooling reduces the stress associated with peer relationships, particularly for girls. These findings imply that the non-cognitive benefits of single-sex education may be stronger than previously thought. As a result, we advocate for a more thoughtful and inclusive implementation of school policies, taking into consideration the impact of gender peer effects at school.
Journal: Applied Economics
Pages: 1689-1704
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2291096
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2291096
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# input file: RAEC_A_2177595_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Toka S. Mohamed
Author-X-Name-First: Toka S.
Author-X-Name-Last: Mohamed
Author-Name: Mohammed M. Elgammal
Author-X-Name-First: Mohammed M.
Author-X-Name-Last: Elgammal
Title: Does the extent of branchless banking adoption enhance the social and financial performance of microfinance institutions?
Abstract:
We examine the impact of the extent of branchless banking adoption on the social and financial performance of an international sample of microfinance institutions (MFIs). We find that increasing the number of branchless banking points of service in MFIs is associated with productivity enhancements and improved social outreach. However, this occurs at the expense of adverse credit risk and profitability outcomes. Our results are robust to alternative measures of social and financial performance and the use of multiple methodologies including generalized method of moments, two and three-stage least squares. By introducing a quadratic specification, we unveil a parabolic relationship between the extent of branchless banking adoption and MFIs’ credit risk and profitability, which indicates that positive profitability and risk outcomes can eventually be achieved in MFIs with extensive branchless banking networks. This presents an important contribution to explaining the variations in insight in extant literature. These findings are relevant to policy makers as they indicate that investments in branchless banking present promising outcomes by encouraging financial inclusion, enhancing productivity and efficiency, and improving long-term profitability and repayment rates among MFIs. However, the initial adversity to profitability and credit risk may be a sufficient deterrent from BB investments for financially-oriented MFIs.
Journal: Applied Economics
Pages: 1671-1688
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177595
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177595
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# input file: RAEC_A_2177592_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Luan Thanh Nguyen
Author-X-Name-First: Luan Thanh
Author-X-Name-Last: Nguyen
Author-Name: Shyama Ratnasiri
Author-X-Name-First: Shyama
Author-X-Name-Last: Ratnasiri
Author-Name: Liam Wagner
Author-X-Name-First: Liam
Author-X-Name-Last: Wagner
Title: Industrial energy efficiency and determinants in Vietnam: A stochastic frontier analysis using firm-level data
Abstract:
In this study, we employ the Shephard energy distance function to evaluate the impacts of three broad aspects (i) government involvement, (ii) firm’s managerial behaviour and (iii) technology adoption on energy (in)efficiency. Using a true fixed-effect model with a firm-level dataset of eight major industries in Vietnam from 2011 to 2016, the results suggest that these three aspects influence energy efficiency at varying degrees. The novel finding is that government involvement in business improves energy efficiency in less efficient industries. Furthermore, import activities negatively impact energy efficiency while the quality of labour increases efficiency. However, production expansion investment worsens the energy inefficiency situation.
Journal: Applied Economics
Pages: 1636-1651
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177592
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177592
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# input file: RAEC_A_2305621_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Fábio A. R. Gomes
Author-X-Name-First: Fábio A. R.
Author-X-Name-Last: Gomes
Author-Name: Lívia C. M. Melo
Author-X-Name-First: Lívia C. M.
Author-X-Name-Last: Melo
Author-Name: Gian Paulo Soave
Author-X-Name-First: Gian Paulo
Author-X-Name-Last: Soave
Title: Flexible markov-switching models with evolving regime-specific parameters: an application to Brazilian business cycles
Abstract:
This article develops a flexible class of Markov-switching models in which the GDP growth rate is decomposed into a long-run growth trend and evolving regime-dependent means. The models can account for multiple regimes, breaks in the long-run trend, stochastic volatility, and time-varying transition probabilities. They can also handle data outliers that may arise from rare events, such as the COVID-19 crisis. We illustrate our methodology by modelling Brazilian GDP growth, which has exhibited complicated dynamics over the past four decades. Our results suggest two regimes, one long-run trend break, significant time variation in volatility, and the presence of outliers. Moreover, the selected model features time-varying transition probabilities driven by domestic variables (fiscal stance, reserves, and the real interest rate). Significantly, our findings indicate a marked decline in Brazil’s long-run growth in recent years.
Journal: Applied Economics
Pages: 1705-1722
Issue: 14
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2024.2305621
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2305621
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# input file: RAEC_A_2177600_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Shilin Li
Author-X-Name-First: Shilin
Author-X-Name-Last: Li
Author-Name: Tongtong Li
Author-X-Name-First: Tongtong
Author-X-Name-Last: Li
Author-Name: Jinhong Wang
Author-X-Name-First: Jinhong
Author-X-Name-Last: Wang
Author-Name: Jinqiang Yang
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Yang
Title: Implications of pandemic shocks in the production economy
Abstract:
This paper introduces the SIS epidemic model into a production-based economy. We study the asset pricing implications of the interaction between COVID-19’s shock and mitigation policy for the production economy. The mitigation policy could hinder the consumption, while it will prompt an investment slump. The results indicate some trade-offs between mitigating the transmission of the pandemic and economic output varying with different uncertainty of the pandemic. Notably, the risk premium and growth of capital value present an inverse hump-shape with the infection rate.
Journal: Applied Economics
Pages: 1801-1816
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177600
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177600
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# input file: RAEC_A_2177596_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Sauveur Giannoni
Author-X-Name-First: Sauveur
Author-X-Name-Last: Giannoni
Author-Name: Sylvain Petit
Author-X-Name-First: Sylvain
Author-X-Name-Last: Petit
Author-Name: Louinord Voltaire
Author-X-Name-First: Louinord
Author-X-Name-Last: Voltaire
Author-Name: Philippe Chagnon
Author-X-Name-First: Philippe
Author-X-Name-Last: Chagnon
Author-Name: Jean Ralph Marvensky Paul
Author-X-Name-First: Jean Ralph Marvensky
Author-X-Name-Last: Paul
Title: Adoption of Covid-19 safety certification and pricing strategy in the hotel industry
Abstract:
The tourism sector has voluntarily undertaken several initiatives to boost customer confidence in response to the COVID-19 pandemic. For example, in the hotel industry, three different strategies have been implemented: sending no COVID-19 safety signal; sending a moderate signal through a charter; or sending a strong signal through a label. This study aims to identify the main drivers of the hotels’ choice among these strategies and to analyze the influence of their choice on price setting. We estimate a system of three equations (hotel pricing, star rating, COVID-19 safety signal) on a sample of 418 rated hotels in the Hauts-de-France region. Results support three main findings: 1) star rating positively correlates with COVID-19 certification; 2) COVID-19 certification has a strongly negative impact on hotel prices; 3) star rating moderates positively the effect of COVID-19 certification on prices. Furthermore, error terms between the star rating level and COVID-19 certification equations are strongly correlated. Hence unobserved common factors play a role in the adoption of these quality signals. Our findings are consistent with the idea that managers implementing safety signaling strategies are more worried about recovery speed after lockdowns.
Journal: Applied Economics
Pages: 1723-1747
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177596
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177596
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# input file: RAEC_A_2301221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Huiming Zhang
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhang
Author-Name: Zhen Ma
Author-X-Name-First: Zhen
Author-X-Name-Last: Ma
Author-Name: Siji Qian
Author-X-Name-First: Siji
Author-X-Name-Last: Qian
Title: The market efficiency analysis of China’s copper options based on risk-free arbitrages
Abstract:
This paper probes into the market efficiency and relevant issues of copper options, the first industrial options product launched in China and currently the only non-ferrous metals option. Since its listing on 21 September 2018, the copper options market, developing on the fast track, has become the largest copper options market in the world, and thus it is of important meaning to study its market efficiency. Taking the data of China’s copper options market from its debut to 30 April 2022 as a sample, this paper studies the efficiency of this market using three typical risk-free arbitrages such as put-call-future parity arbitrage, box spread arbitrage, and boundary arbitrage strategies. To better reflect the actual situation, this paper, when establishing options arbitrage strategy models, not only took into account various actual trading factors such as transaction costs, market impact costs, liquidity costs, margin, and capital opportunity costs but also combined daily and high-frequency data to present highly practical arbitrage strategies. According to empirical results, there are few arbitrage opportunities with a very low proportion when actual trading factors were considered. Overall, no evidence was found to prove that China’s copper options market significantly violates the market efficiency rule.
Journal: Applied Economics
Pages: 1834-1862
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2301221
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2301221
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# input file: RAEC_A_2177601_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Mingyong Lai
Author-X-Name-First: Mingyong
Author-X-Name-Last: Lai
Author-Name: Jiayu Fang
Author-X-Name-First: Jiayu
Author-X-Name-Last: Fang
Author-Name: Rui Xie
Author-X-Name-First: Rui
Author-X-Name-Last: Xie
Title: Does regional innovation policy encourage firm indigenous innovation? Evidence from a quasi-natural experiment of the pilot project of innovative cities in China
Abstract:
Whether regional innovation policy can stimulate firms’ indigenous innovation is an essential issue of common concern for policymakers and scholars. Treating the pilot project of innovative cities as a quasi-natural experiment and using firm-level data from 2006 to 2013, this paper employs the difference-in-differences method to quantify the influence of innovative cities’ policy on enterprise indigenous innovation. We found that the innovative city pilot policy significantly stimulates firms’ indigenous innovation and this impact is heterogeneous at the industry and firm levels. In terms of industry heterogeneity, the innovative city pilot policy increases the number of patent filings in industries with high capital intensity; in terms of firm heterogeneity, the innovative city pilot policy stimulates the number of patent filings in both large and non-SOE enterprises. This policy mainly promotes high-quality indigenous innovation in firms. The test of the impact mechanism reveals that government subsidy and market competition are critical paths through which innovation city pilot policy influence enterprises’ indigenous innovation activities. The research in this paper reveals the micro effects of regional innovation policy and points out the direction for further promoting innovation city pilot work and formulating regional innovation policy.
Journal: Applied Economics
Pages: 1817-1833
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177601
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177601
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# input file: RAEC_A_2177599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Kelvin Mulungu
Author-X-Name-First: Kelvin
Author-X-Name-Last: Mulungu
Author-Name: Mumbi E. Kimani
Author-X-Name-First: Mumbi E.
Author-X-Name-Last: Kimani
Author-Name: Mare Sarr
Author-X-Name-First: Mare
Author-X-Name-Last: Sarr
Title: Do farmers’ risk preferences remain stable in the face of climatic shocks? Evidence from smallholder farmers in Zambia
Abstract:
Smallholder farmers in Africa are vulnerable to changing climatic conditions because of their dependence on rainfed agriculture. Their adaptation strategies, which are critical for food security, are oftentimes influenced by their risk-taking attitude. This study examines whether experiencing climatic shocks (defined here as drought events) shapes farmers’ risk aversion. The study addresses two crucial questions: 1) how do drought events alter risk preferences among smallholder farmers; and 2) how long does the impact last? Using a panel survey from Zambia and high spatial resolution climate data, we infer the average Arrow-Pratt and downside risk aversion coefficients from the moment of the distribution of crop production. We find that, on average, the sampled farmers are risk averse. Furthermore, farmers who experienced a drought in the previous year become more risk averse, while farmers who experienced recurring droughts within the previous three years become even more risk averse. We also find that the effect of climatic shocks on risk preferences is short term, lasting only one year. These results have implications on adaptation to climate change.
Journal: Applied Economics
Pages: 1784-1800
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177599
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177599
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# input file: RAEC_A_2177597_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Audrey Sallenave
Author-X-Name-First: Audrey
Author-X-Name-Last: Sallenave
Author-Name: Jean-Pierre Allegret
Author-X-Name-First: Jean-Pierre
Author-X-Name-Last: Allegret
Author-Name: Tolga Omay
Author-X-Name-First: Tolga
Author-X-Name-Last: Omay
Title: Can governments sleep more soundly when holding international reserves? A banking and financial vulnerabilities perspective*
Abstract:
We use a sample of 40 developing and emerging countries over the period 1995–2015 to assess the effectiveness of international reserve holding as a crisis mitigator. We test the relevance of the reserve accumulation decreasing returns assumption by estimating the most recent version of the PSTR model. We find that increasing stocks of international reserves allows domestic authorities to mitigate the negative impacts of financial and banking vulnerabilities on GDP growth rates leading to reject the decreasing returns assumption. This evidence is robust to sensitivity checks.
Journal: Applied Economics
Pages: 1748-1762
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177597
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177597
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# input file: RAEC_A_2177598_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Debdatta Pal
Author-X-Name-First: Debdatta
Author-X-Name-Last: Pal
Title: The Distribution of Commodity Futures: A Test of the Generalized Hyperbolic Process
Abstract:
Using daily closing price data spreading over 3 April 1990, to 5 May 2020, this study explores the skewness and excess kurtosis behaviour across energy, metals, and agricultural commodity futures. Subsequently, it compares the fitting of an empirical distribution under normal distribution assumption with those under the Generalized Hyperbolic distribution. The generalized hyperbolic distribution includes Hyperbolic distribution, Variance-Gamma distribution, and Normal Inverse Gaussian distribution. The results show that the Normal Inverse Gaussian distribution for natural gas, gold, platinum, copper, sugar, and feeder cattle futures captures skewness as well as excess kurtosis of the daily logarithmic returns. The findings are robust to the sub-sample analysis.
Journal: Applied Economics
Pages: 1763-1783
Issue: 15
Volume: 56
Year: 2024
Month: 03
X-DOI: 10.1080/00036846.2023.2177598
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177598
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# input file: RAEC_A_2178626_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Sayed Saghaian
Author-X-Name-First: Sayed
Author-X-Name-Last: Saghaian
Author-Name: Michael Reed
Author-X-Name-First: Michael
Author-X-Name-Last: Reed
Title: Investigation of export-driving forces and trade potentials of the U.S. bourbon whisky industry
Abstract:
Bourbon whisky is one of the world’s most popular spirits and is a vital component of U.S. spirits exports. Yet, very limited research has examined the trade patterns of U.S. bourbon whisky. The purposes of this paper lie in (i) filling a void in the literature about the driving forces behind U.S. bourbon whisky exports, especially justifying the impact of geographical indications and trade disputes, and (ii) examining global and regional trade efficiency and trade potential of U.S. bourbon whisky, considering consumer preferences. This study adopts the stochastic frontier gravity model and trade inefficiency model to analyze bourbon trade patterns between the U.S. and its primary bourbon trade partners over 1990–2019. Results reveal that economic size, income level, trade facilitation, common language and the weighted share of adults who drink in the importing country are important factors in boosting bourbon trade flows. As expected, U.S. bourbon’s geographical indication is playing a significant role in boosting bourbon exports. Trade disputes between the U.S. and its trading partners are found to have significantly negative impacts on U.S. bourbon exports. Our research also reveals that U.S. bourbon whisky has great potential to reach markets throughout the world, particularly in Europe, North America and Oceania.
Journal: Applied Economics
Pages: 1950-1970
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178626
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178626
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Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1950-1970
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# input file: RAEC_A_2311064_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Aleksandr Grigoryan
Author-X-Name-First: Aleksandr
Author-X-Name-Last: Grigoryan
Author-Name: Knar Khachatryan
Author-X-Name-First: Knar
Author-X-Name-Last: Khachatryan
Author-Name: Pundarik Mukhopadhaya
Author-X-Name-First: Pundarik
Author-X-Name-Last: Mukhopadhaya
Title: Effectiveness of the main national pro-poor targeted program in Armenia: evidence from the period 2004–2018
Abstract:
Using the Armenian Household Survey data for 2004–2018 this study explores the causal effect of family benefits, the country’s main poverty targeted program, on multidimensional and monetary poverty. We find that only 40% of the total fund of this targeted program reaches the severe multidimensional poor households. Our regression estimation based on bias-corrected dynamic panel data models reveals that an increase in the proportion of households receiving family benefits mostly results in a decrease in the incidence of severe multidimensional poverty. However, it has no significant effect on moderately poor households and those who are vulnerable to poverty. This program significantly benefits only those households who are poor in terms of their health expenditure. We further observe that the impact of these benefits is significant on extreme monetary poor but the effect is inconclusive on those who live below the national upper poverty line. Our findings suggest that in the current development stage of the country the targeted poverty programs should focus on enhancing capabilities and human capital development. Also, to address the social assistance coverage gap, the government needs to enhance incentive mechanisms for the main actors in the social protection system.
Journal: Applied Economics
Pages: 1971-1989
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2024.2311064
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2311064
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Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1971-1989
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# input file: RAEC_A_2177603_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Sheng Yao
Author-X-Name-First: Sheng
Author-X-Name-Last: Yao
Author-Name: Wei-Wei Zhang
Author-X-Name-First: Wei-Wei
Author-X-Name-Last: Zhang
Author-Name: Linyan Fan
Author-X-Name-First: Linyan
Author-X-Name-Last: Fan
Title: Mixed-gender analyst team and accuracy of earnings forecast: evidence from China
Abstract:
We examine the effect of analyst teams’ gender diversity on the accuracy of their earnings forecasts. We find that, compared with single-gender analyst teams, mixed-gender analyst teams generate more accurate earnings forecasts and have less optimism bias. The desirable effect of mixed-gender analyst teams on the accuracy of earnings forecasts is more significant in the highly educated or experienced analyst teams, in smaller brokerages with fewer star analysts, and in firms audited by non-Big -Four accounting firms or with less analyst coverage. Further studies find that, female analysts who work in teams produce more accurate earnings forecasts than they work individually. In addition, when a single-gender analyst team transforms into a mixed-gender analyst team, its reports have more accuracy and less optimism bias than before, and vice versa.
Journal: Applied Economics
Pages: 1885-1898
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2177603
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177603
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Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1885-1898
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# input file: RAEC_A_2177604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Veasna Kheng
Author-X-Name-First: Veasna
Author-X-Name-Last: Kheng
Author-Name: Justin Mckinley
Author-X-Name-First: Justin
Author-X-Name-Last: Mckinley
Author-Name: Lei Pan
Author-X-Name-First: Lei
Author-X-Name-Last: Pan
Title: The decline of labour share in OECD and non-OECD since the 1980s
Abstract:
This paper examines the causes of falling labour share in OECD and non-OECD countries since the 1980s by using Karabarbounis and Neiman’s (2014) labour share model. While both groups of countries experience an elasticity of substitution between capital and labour, the factors driving down labour share are different. In OECD countries, export and volatility are key drivers, but in non-OECD countries, the significant factors are financial openness and the capital’s relative price. Overall, technological advancement – as reflected by declining capital’s relative price – coupled with globalization and low economic risk are key factors in explaining a long-term decline of labour share worldwide.
Journal: Applied Economics
Pages: 1899-1915
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2177604
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177604
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Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1899-1915
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# input file: RAEC_A_2177602_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Gianni Carvelli
Author-X-Name-First: Gianni
Author-X-Name-Last: Carvelli
Title: Exogenous variations in public debt and the private output: addressing country heterogeneity and cross-sectional dependence in a large panel
Abstract:
Using projections from the IMF’s World Economic Outlook (WEO) database, we explore the links between public debt and the private sector by estimating the response of private output to debt shocks – defined as debt forecast errors. We address several econometric issues through a flexible dynamic panel framework that accommodates slope heterogeneity of the coefficients and cross-sectional dependence. The overall results suggest that positive shocks in public debt are detrimental to the dynamics of private output. Nevertheless, the effect becomes neutral if countries have followed a pattern of fiscal consolidation over the previous five years. The estimates at individual-level are consistent with the general findings, except for a small group of countries. For instance, a positive and significant effect of debt emerges only for one advanced country and seven emerging economies. Although high levels of indebtedness are associated with a rapid decline in the debt coefficients, a nonlinear effect in the form of a Laffer-type curve appears to be unlikely.
Journal: Applied Economics
Pages: 1863-1884
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2177602
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2177602
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Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1863-1884
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# input file: RAEC_A_2178625_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: FDA-approved medications for dementia are unlike non-pharmacological interventions as they are counterproductive
Abstract:
Recently, a number of non-pharmacological interventions for dementia symptoms were evaluated using cost–benefit analysis (CBA) and found to be both effective and socially worthwhile. What is missing is a comparison of evaluations for these interventions with pharmaceutical interventions approved by the Food and Drug Administration (FDA) to see which interventions should be given priority in public expenditure budgets aiming to reduce dementia symptoms. This paper fills this knowledge gap by carrying out a CBA of FDA-approved medications using a large national data set provided by the National Alzheimer’s Coordinating Center (NACC). We find that the pharmaceutical medications were actually counterproductive, and therefore social welfare would be substantially improved by not investing in these medications. This therefore means that non-pharmaceutical interventions should be given higher priority at this time.
Journal: Applied Economics
Pages: 1935-1949
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178625
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178625
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Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1935-1949
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# input file: RAEC_A_2178624_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Sebastian A. Gehricke
Author-X-Name-First: Sebastian A.
Author-X-Name-Last: Gehricke
Author-Name: Xinfeng Ruan
Author-X-Name-First: Xinfeng
Author-X-Name-Last: Ruan
Author-Name: Jin E. Zhang
Author-X-Name-First: Jin E.
Author-X-Name-Last: Zhang
Title: Doing well while doing good: ESG ratings and corporate bond returns
Abstract:
The relationship between ESG performance and equity returns has become a popular area of research, but the same is not yet the case for bond returns. In this paper, we explore whether incorporating ESG factors, beyond emissions into the bond portfolio investment process leads to under or out performance. We find that ESG investing in bond portfolios does not lead to over or under performance. In other words, you do not have to ‘pay to do good’. Further, in the period since the Paris agreement, Energy sector bond portfolio returns are positively related to ESG factors. This finding aligns with the theoretical prediction of Pedersen, Fitzgibbons, and Pomorski (2020), namely, that the ESG-return relationship should become positive as investors become more aware of ESG risks and opportunities. Overall, we show that Bond investors can ‘do well while doing good’.
Journal: Applied Economics
Pages: 1916-1934
Issue: 16
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178624
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178624
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Handle: RePEc:taf:applec:v:56:y:2024:i:16:p:1916-1934
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# input file: RAEC_A_2305610_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hangsuck Lee
Author-X-Name-First: Hangsuck
Author-X-Name-Last: Lee
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Author-Name: Jihoon Son
Author-X-Name-First: Jihoon
Author-X-Name-Last: Son
Title: Life-cycle decisions and general equilibrium in the heterogeneous-agent OLG economy
Abstract:
This study develops a life-cycle model to predict an overlapping generations economy with heterogeneous agents. In our proposed model, ex-ante heterogeneity includes the work probability, survival rate, subjective discount rate, and intertemporal elasticity of substitution. We observe differences in financial decisions and asset accumulation among heterogeneous agents and calculate equilibrium values of aggregate economic variables, such as consumption and capital. For the numerical analyses, we classify the population into four groups based on labour productivity and gender, and investigate the life-cycle behaviours of heterogeneous agents. Retirees in the male group with low labour productivity and low remaining life expectancy have the highest propensity to consume and the highest consumption elasticity for retirement shock compared to other retirees. Workers with relatively high labour productivity have lower risk adjustment factors, indicating that they are less concerned about retirement risk than less productive workers.
Journal: Applied Economics
Pages: 2089-2108
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2024.2305610
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2305610
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# input file: RAEC_A_2178630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mahama Samir Bandaogo
Author-X-Name-First: Mahama Samir
Author-X-Name-Last: Bandaogo
Author-Name: Emmanuel K.K. Lartey
Author-X-Name-First: Emmanuel K.K.
Author-X-Name-Last: Lartey
Title: Duration of fixed exchange rate regimes: the role of central bank independence
Abstract:
Using a comprehensive dataset, this paper estimates a hazard model to examine whether central bank independence matters for the sustainability of fixed exchange rate regimes. The findings suggest that fixed exchange rate regimes are more likely to have a longer duration under more independent central banks; a result that holds true whether an exit from such a regime is orderly or disorderly. Thus, a more independent central bank is more likely to facilitate a more durable fixed exchange rate regime.
Journal: Applied Economics
Pages: 2025-2038
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178630
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178630
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Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:2025-2038
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# input file: RAEC_A_2178628_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fidele Eric Sessou
Author-X-Name-First: Fidele Eric
Author-X-Name-Last: Sessou
Author-Name: Christian H.C.A. Henning
Author-X-Name-First: Christian H.C.A.
Author-X-Name-Last: Henning
Title: Conflict and farm inputs investment : can social safety nets have any mitigation effect?
Abstract:
This paper examines the impact of armed conflict on the tendency and value of investments in farm inputs. We further investigate whether unconditional cash transfers could stimulate investments in inputs under the context of armed conflict. Using panel data collected in 2014 and 2016 in Mali, we combine the control function approach with the correlated random effect model to address the time-invariant unobserved heterogeneity in non-linear context and the endogeneity problem of conflict variable. We take advantage of the randomized rollout of a national cash transfer program to investigate if there is any differential impact on farm inputs. We find that conflict has a negative and statistically significant impact on the tendency to use and the value of investments on fertilizers, pesticides and machinery. Interestingly, we find a statistically insignificant impact of the cash transfers on farm input investments. From a policy perspective, productive capacities of households cannot be restored by the cash transfers. Rather, a recovery of markets’ operations through the re-establishment of security is a more effective policy measure to increase investments in farm inputs.
Journal: Applied Economics
Pages: 1991-2007
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178628
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178628
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Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:1991-2007
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# input file: RAEC_A_2178632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Julián P. Díaz
Author-X-Name-First: Julián P.
Author-X-Name-Last: Díaz
Title: Does dollarization promote trade? Evidence from two recent episodes
Abstract:
We quantify the trade-promotion effects of sharing a common currency by examining two recent episodes of official dollarization. To establish causal relationships, while avoiding the methodological criticisms of the previous literature on the issue (endogeneity and heteroskedasticity), we employ a differences-in-differences strategy that compares the pre- and post-dollarization trade flows between the United States and the two dollarizers (Ecuador and El Salvador) with the trade flows between the United States and the dollarizers’ neighbours. We find that the adoption of the dollar did not bring about any significant positive trade effects. Using product-level data we find that, while a few sectors saw positive increases, those instances are scattered and not the norm. Dollarization did not lead to increases in trade of previously non-traded goods either. Finally, we do not find any trade-promotion effects between Ecuador or El Salvador and the other dollarized country in the region (Panama) or between the newly dollarized countries themselves. These findings remain valid after we perform a battery of robustness tests, including PPML estimation.
Journal: Applied Economics
Pages: 2058-2076
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178632
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178632
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# input file: RAEC_A_2178629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mariam Djelassi
Author-X-Name-First: Mariam
Author-X-Name-Last: Djelassi
Title: Training services and repayment performance of micro-borrowers in Tunisia
Abstract:
This paper aims to empirically assess the effectiveness of training services on borrowers’ repayment performance in a leading microfinance institution in Tunisia. The two training services analysed are financial education and entrepreneurial coaching. Financial education as basic capital management training does not impact repayment performance. On the other hand, coaching programs to strengthen the technical, managerial, and marketing skills of microentrepreneurs significantly improve repayment performance. These results are obtained through an ordered probit model with endogenous treatment accounting for selection bias and endogeneity problems arising from unobservable factors that influence both the use of training services and repayment quality. These results remain significant after restructuring the sample into more homogeneous borrowers’ groups and confirm the hypotheses of the human capital theory. The determinants of training services are also explored. The findings confirm the importance of integrated microfinance strategies, especially in remote rural areas. Combining microcredit with coaching will empower the poor to foster their entrepreneurial skills, productivity, and thus their repayment ability. This study sheds more light on how microfinance institutions can improve their programs in developing countries, which often suffer from a lack of technical and vocational training, the main handicap for transitioning young people to the labour market.
Journal: Applied Economics
Pages: 2008-2024
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178629
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178629
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Handle: RePEc:taf:applec:v:56:y:2024:i:17:p:2008-2024
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# input file: RAEC_A_2178633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Kamil Kladívko
Author-X-Name-First: Kamil
Author-X-Name-Last: Kladívko
Author-Name: Pär Österholm
Author-X-Name-First: Pär
Author-X-Name-Last: Österholm
Title: Analysts versus the random walk in financial forecasting: evidence from the Czech National Bank’s Financial Market Inflation Expectations survey
Abstract:
We analyse how financial market analysts’ expectations in the Czech National Bank’s Financial Market Inflation Expectations survey perform relative to the random-walk forecast when it comes to predicting five financial variables. Using data from 2001 to 2022, our results indicate that the analysts are able to significantly outperform the random-walk forecast in terms of forecast precision for the repo rate and Prague Interbank Offered Rate at the one-month forecasting horizon. For the five- and ten-year interest rate swap rates, the random walk significantly outperforms the analysts at both the one-month and one-year forecasting horizons. For the CZK/EUR exchange rate, the random-walk forecast has a lower root mean squared forecast error than that of the analysts’ forecast at the one-month horizon whereas at the one-year horizon the opposite is found; however, none of these differences are statistically significant.
Journal: Applied Economics
Pages: 2077-2088
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178633
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178633
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# input file: RAEC_A_2178631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Can Tang
Author-X-Name-First: Can
Author-X-Name-Last: Tang
Author-Name: Liqiu Zhao
Author-X-Name-First: Liqiu
Author-X-Name-Last: Zhao
Title: Gender Social Norms and Gender Gap in Math: Evidence and Mechanisms
Abstract:
In this paper, we explore the roles of gender social norms in explaining the gender gap in maths test scores across the entire distribution. Applying generalized quantile regression models, we show that gender-equal cultural norms eliminate the gender gap in maths scores at the top of the distribution. Moreover, this effect is concentrated among students in the higher grade level. An investigation of the underlying mechanisms shows that girls from more gender-equal regions are less likely to hold maths-specific stereotypes and are likely to receive more attention from maths teachers. Additionally, girls from more gender-equal regions tend to perceive that parents have higher educational aspirations for them and are more confident about their future. Our paper provides compelling evidence that policy initiatives aiming at fostering egalitarian gender norms could serve as powerful tools to alleviate the gender gap in maths at the top of the distribution.
Journal: Applied Economics
Pages: 2039-2057
Issue: 17
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2178631
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2178631
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# input file: RAEC_A_2182407_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Peiran Li
Author-X-Name-First: Peiran
Author-X-Name-Last: Li
Author-Name: Xianghui Yuan
Author-X-Name-First: Xianghui
Author-X-Name-Last: Yuan
Author-Name: Liwei Jin
Author-X-Name-First: Liwei
Author-X-Name-Last: Jin
Title: National team intervention and price efficiency differentiation under the impact of COVID-19
Abstract:
This paper examines how the ‘national team’, a direct government investment policy, influences the price efficiency of listed companies in the Shanghai Stock Index (SSE). We find that stocks directly invested in by the national team show greater price efficiency than stocks without direct bailout. We also analyse the impact of the COVID-19 pandemic on this price efficiency differentiation. The data period is divided into two sub-periods, and the results show that the price efficiency of stocks decreased after COVID-19. The reduction in price efficiency is more notable for stocks with direct government investment; the difference observed under national team investment in price efficiency is clearly reduced. Increased pessimistic investor expectations due to the pandemic could explain these changes. Our study provides novel evidence for the policy evaluation of national team intervention and a more detailed explanation about the decrease in financial market efficiency in the post-COVID-19 era.
Journal: Applied Economics
Pages: 2129-2141
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2182407
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2182407
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# input file: RAEC_A_2186360_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Gayathri Giri
Author-X-Name-First: Gayathri
Author-X-Name-Last: Giri
Author-Name: K.S. Nivedhitha
Author-X-Name-First: K.S.
Author-X-Name-Last: Nivedhitha
Author-Name: Hansa Lysander Manohar
Author-X-Name-First: Hansa Lysander
Author-X-Name-Last: Manohar
Title: Can blockchain enabled green bond issuance lead to intent to invest? A moderated mediation model
Abstract:
While financial literacy supports enhanced investment decisions, the study of blockchain enabled green bond issuance and its influence on intent to invest has not been investigated to date. To address this research gap, the present study developed a moderated mediation model, based on planned behaviour theory, and organizational information processing theory. This model describes the influence of blockchain enabled green bond issuance on the intent to invest via perceived behavioural control, conditioned by the moderating role of financial literacy. 304 responses were collected to test the hypothesized relationship. The results revealed that perceived behavioural control partially mediates the relationship between blockchain enabled green bond issuance and the intent to invest. Besides, the effect of mediation was discovered to be substantial at higher levels of financial literacy.
Journal: Applied Economics
Pages: 2191-2208
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186360
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186360
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# input file: RAEC_A_2182406_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Richard Bowen
Author-X-Name-First: Richard
Author-X-Name-Last: Bowen
Title: Score-driven cryptocurrency and equity portfolios
Abstract:
This paper discusses whether the Bitcoin exchange-traded fund (ETF), which tracks the value of Bitcoin, improves equity portfolios, by using a robust portfolio performance analysis. The equity portfolio is represented by an ETF that tracks the Standard & Poor’s 500. We use data from a turbulent investment period within the coronavirus pandemic, to study the diversification benefits of Bitcoin. We compare the performances of diverse portfolios composed of both ETFs, which include 40 classical dynamic volatility model-based portfolios and 900 score-driven portfolios. For the score-driven portfolios, the dynamic association is modelled by score-driven Clayton, rotated Clayton, Gumbel, rotated Gumbel and Student’s t copulas. We compare portfolio strategies using the model confidence set test. We find that score-driven portfolios outperform classical volatility model-based portfolios and the equity portfolio. Our results may provide suggestions for cryptocurrency investors on portfolio optimization and may also have policy implications for regulators and policymakers.
Journal: Applied Economics
Pages: 2109-2128
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2182406
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2182406
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# input file: RAEC_A_2184461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Govinda Timilsina
Author-X-Name-First: Govinda
Author-X-Name-Last: Timilsina
Author-Name: David I. Stern
Author-X-Name-First: David I.
Author-X-Name-Last: Stern
Author-Name: Debasish K. Das
Author-X-Name-First: Debasish K.
Author-X-Name-Last: Das
Title: Physical infrastructure and economic growth
Abstract:
The existing literature on the relationship between infrastructure and economic growth is inconclusive. We estimate the effect on GDP of three main categories of infrastructure – transport, electricity, and telecommunications – using data from 87 countries over the period 1992–2017. This study uses more recent data than previous research and includes new types of infrastructure such as mobile phones. Our main estimates use the PMG estimator that allows us to test for the weak exogeneity of the infrastructure variables. The key finding of the study is that an increase in infrastructure, especially electricity generation capacity and telecommunications, has large long-run positive effects on GDP, though the short-run effects are much smaller and are less than zero for roads and railways. Also, the effects of electricity and communication infrastructure are higher relative to the effects of transport infrastructure in developing economies than in industrialized economies.
Journal: Applied Economics
Pages: 2142-2157
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2184461
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2184461
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# input file: RAEC_A_2186356_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tao Ren
Author-X-Name-First: Tao
Author-X-Name-Last: Ren
Author-Name: Xiaotan Zhang
Author-X-Name-First: Xiaotan
Author-X-Name-Last: Zhang
Title: Dose China’s overcapacity-cutting campaign take effect as intended? Evidence from listed manufacturing companies
Abstract:
China has implemented overcapacity-cutting actions in the past few years, and this article focuses on the policy effects on the capacity utilization of firms in manufacturing industries. Based on the data from listed firms, this study measures the firm-level capacity utilization in 2011–2020 using a cost function method in translog form. And on this basis, using a difference-in-differences model, the policy effects are empirically verified. Our results suggest that the implementation of the policy from 2016 relatively increased the capacity utilization of firms in targeted industries with serious overcapacity, and the positive impact continues during the 13th Five-Year Plan period. Further, for firms in the steel industry, we find that their capacity utilization was affected more strongly and more persistently since 2016. We see these findings indicate that China’s overcapacity-cutting policy has not only eliminated a large amount of outdated excess capacity but also improved the efficiency of resource utilization for the remaining companies in the target industries.
Journal: Applied Economics
Pages: 2176-2190
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186356
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186356
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# input file: RAEC_A_2277693_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yue Liu
Author-X-Name-First: Yue
Author-X-Name-Last: Liu
Author-Name: Rong Luo
Author-X-Name-First: Rong
Author-X-Name-Last: Luo
Title: Environmental regulation and outward foreign direct investment: evidence from Chinese firms’ overseas mergers and acquisitions
Abstract:
While the literature shows that stricter environmental regulations deter exports and inward foreign direct investment (FDI), few studies examine the impacts on outward FDI, especially for developing countries. In this paper, we analyse this issue in the context of China, which is the largest developing country in terms of FDI. We collect the transaction-level data of all the overseas mergers and acquisitions (M&As) by Chinese firms from 2000 to 2019. For the identification of the causal effect, we exploit the implementation of the Environmental Protection Law in 2015 as a quasi-natural experiment and carry out the difference-in-difference-in-differences analysis (DDD). The results show significant impacts of stricter environmental regulations on outward FDI. When the provincial emission reduction target increases by 10% points, the number of overseas M&A transactions in the high-polluting industries has increased by 32 every year since 2015. Moreover, the investments are more likely towards countries with better environmental protection. This suggests that firms aim at gaining cleaner technologies via M&As rather than transferring pollution abroad.
Journal: Applied Economics
Pages: 2209-2222
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2277693
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2277693
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# input file: RAEC_A_2186355_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mónica Domínguez
Author-X-Name-First: Mónica
Author-X-Name-Last: Domínguez
Author-Name: Juan Aparicio
Author-X-Name-First: Juan
Author-X-Name-Last: Aparicio
Author-Name: Antonio Fonfria
Author-X-Name-First: Antonio
Author-X-Name-Last: Fonfria
Title: The defence economy: an assessment of productivity change in NATO countries
Abstract:
The main purpose of this paper is to find the determinants of productivity growth and its evolution over time for 27 North Atlantic Treaty Organization (NATO) countries over the period 2010–2017, with respect to the Global Peace Index. To this end, a production function was estimated for each year using Data Envelopment Analysis (DEA) methodology while the components of efficiency change, technical change, scale efficiency change and productivity change were calculated using the Malmquist Index for determining the change in productivity over time. According to the results obtained, the countries show a variation in productivity with a rising trend of 2%; Albania, Belgium, Croatia, Czech Republic, France, Germany, Greece, Montenegro, Slovenia, Norway and the United Kingdom being the countries where the rise was more intense. Moreover, relative productivity fell in 11 other countries in the period under review. In particular, with regard to efficiency change, the countries improved on average by 0.2%, with Portugal showing the greatest rise and France the smallest. Regarding technical change, it rose on average by 5.2%. Finally, scale efficiency fell on average by 3.3%, with Romania being the most disadvantaged and Portugal the most favoured.
Journal: Applied Economics
Pages: 2158-2175
Issue: 18
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186355
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186355
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# input file: RAEC_A_2186364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shweta Bahl
Author-X-Name-First: Shweta
Author-X-Name-Last: Bahl
Author-Name: Ajay Sharma
Author-X-Name-First: Ajay
Author-X-Name-Last: Sharma
Title: Informality, education-occupation mismatch, and wages: evidence from India
Abstract:
This article examines the intertwining relationship between informality and education-occupation mismatch (EOM) and the consequent impact on the workers’ wages. In particular, we discuss two issues — first, the relative importance of informality and EOM in determining wages; and second, the relevance of EOM for formal and informal workers. The analysis reveals that although both informality and EOM are significant determinants of wages, the former is more crucial for a developing country like India. Further, we find that EOM is one of the crucial determinants of wages for formal workers, but it is not critical for informal workers. The study highlights the need for considering the bifurcation of formal-informal workers to understand the complete dynamics of EOM especially for developing countries where informality is predominant.
Journal: Applied Economics
Pages: 2260-2294
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186364
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186364
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# input file: RAEC_A_2186365_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sílvia Carneiro
Author-X-Name-First: Sílvia
Author-X-Name-Last: Carneiro
Author-Name: Pedro Cunha Neves
Author-X-Name-First: Pedro Cunha
Author-X-Name-Last: Neves
Author-Name: Oscar Afonso
Author-X-Name-First: Oscar
Author-X-Name-Last: Afonso
Author-Name: Elena Sochirca
Author-X-Name-First: Elena
Author-X-Name-Last: Sochirca
Title: Meta-analysis: global value chains and employment
Abstract:
For most of the past half-century, a significant number of companies have carried out a process of transformation of production chains by offshoring parts, components, or services to other countries. The integration of most economies into global value chains (GVCs) has triggered important impacts on several dimensions of the labour markets. In view of the divergent results reported by the related literature, we conduct a meta-analysis on the effects of GVCs on employment. We find that although the average impact is not statistically different from zero, the impact of GVCs on employment differs significantly according to the countries’ development level, the degree of workers’ qualifications, the types of sectors that are considered, the unit of analysis, and the indicators used to measure GVCs and employment.
Journal: Applied Economics
Pages: 2295-2314
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186365
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186365
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# input file: RAEC_A_2186368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Abraham Agyemang
Author-X-Name-First: Abraham
Author-X-Name-Last: Agyemang
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Author-Name: Russell Gregory-Allen
Author-X-Name-First: Russell
Author-X-Name-Last: Gregory-Allen
Author-Name: Hatice Ozer Balli
Author-X-Name-First: Hatice Ozer
Author-X-Name-Last: Balli
Title: Cross-listing flows under uncertainty: an international perspective
Abstract:
The impact of policy uncertainty on corporate decisions and strategies continues to receive significant interest in recent discussions. As a contribution, this study examines how economic policy uncertainty (EPU) in the domestic and global markets impacts corporate cross-listing decisions. To this end, we employ firm and country-level data from 1990 to 2016 from 13 countries. We implement a Granger Causality, Quantile on Quantile Regression (QQR), and Wavelet Coherence approaches and show that monthly local and global EPU influence the cross-listing decisions of firms, with stronger influence for firms from smaller domestic markets. We suggest that firms from smaller domestic markets seek more cross-listing in the face of high local EPU and reduce or avoid cross-listing during high global EPU periods. Our findings suggest that policy transparency could have important implications for current and future corporate decisions.
Journal: Applied Economics
Pages: 2357-2374
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186368
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186368
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# input file: RAEC_A_2186361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yoshihiro Hamaguchi
Author-X-Name-First: Yoshihiro
Author-X-Name-Last: Hamaguchi
Title: Pollution havens and agglomeration: The effect of globalization and technological spillover
Abstract:
The statistical significance of the pollution haven hypothesis remains low. This suggests that some elements may have been overlooked in hypothesis testing. Here, pollution havens due to trade liberalization may depend on the degree of technological spillover. This spillover affects the industrial concentration of polluting firms. Using an agglomeration model with technological spillover, we analysed the effect of transport costs on pollution havens to clarify this relationship. Interactions between an international emission permit trading market and local spillover in innovation bring about the following multiple equilibria: the poverty trap equilibrium leads to similar results in the case of global spillover, where lower transport costs encourage economic growth in addition to relocation from the South to the North. By contrast, equilibrium with a higher concentration of firms leads to the pollution havens hypothesis because decreased transport costs prompt polluting firms to relocate to South with relatively small markets due to the home market effect, leading to lower economic growth. Our findings imply that the type of spillover in innovation (local or global) determines the pollution haven hypothesis. In a global economy, narrowing the North-South technology gap could contribute to eliminating pollution havens.
Journal: Applied Economics
Pages: 2223-2240
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186361
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186361
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# input file: RAEC_A_2186362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hiroshi Fujiki
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Fujiki
Title: Central bank digital currency, crypto assets, and cash demand: evidence from Japan
Abstract:
This study surveyed people’s knowledge and use of central bank digital currency (CBDC), crypto asset ownership, and cash demand in Japan. While 4% of the respondents understand CBDC, 10% are willing to use CBDC when available. The demographic characteristics of respondents who understand CBDC are similar to those of crypto asset owners. Average cash demand for day-to-day payment purposes by crypto asset owners is slightly lower than that by nonowners. If CBDC users had similar cash demand to that of crypto asset owners, the introduction of CBDC with attributes similar to crypto assets would not substantially reduce cash demand for day-to-day payment purposes.
Journal: Applied Economics
Pages: 2241-2259
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186362
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186362
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# input file: RAEC_A_2186366_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Stavroula P. Fameliti
Author-X-Name-First: Stavroula P.
Author-X-Name-Last: Fameliti
Author-Name: Vasiliki D. Skintzi
Author-X-Name-First: Vasiliki D.
Author-X-Name-Last: Skintzi
Title: Uncertainty indices and stock market volatility predictability during the global pandemic: evidence from G7 countries
Abstract:
This article attempts to examine the predictability of a significant number of uncertainty indices for the G7 stock market volatility based on a Heterogeneous AutoRegressive Realized Volatility (HARRV) model and a combination forecast framework during the global pandemic COVID-19. We include in our analysis the Infectious Disease Equity Market Volatility (IDEMV), the VIX, the Economic Policy Uncertainty (EPU), the Equity Market Volatility (EMV), the Geopolitical risk (GPR) as well as the crude oil futures’ realized volatility. Out-of-sample evidence shows that models incorporating all uncertainty indices improve forecasting performance for most stock markets’ volatility during a long out-of-sample period and also during the coronavirus period. The results are robust using an alternative volatility model, an alternative realized measure and a recursive window analysis. The predictability of the uncertainty indices is also evaluated through risk management and portfolio loss functions and results suggest that the LASSO combination and a HARRV model including all indices are the most profitable for all stock markets during the global pandemic.
Journal: Applied Economics
Pages: 2315-2336
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186366
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186366
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# input file: RAEC_A_2186367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hongshan Ai
Author-X-Name-First: Hongshan
Author-X-Name-Last: Ai
Author-Name: Zhengqing Zhou
Author-X-Name-First: Zhengqing
Author-X-Name-Last: Zhou
Author-Name: Ying Yan
Author-X-Name-First: Ying
Author-X-Name-Last: Yan
Title: The impact of Smart city construction on labour spatial allocation: Evidence from China
Abstract:
Recently, the prevalence of information technology represented by ChatGPT has aroused extensive discussions. Does the adoption of information technology lead to massive regional unemployment? It is a crucial and unresolved issue for the government, enterprise employees, and researchers. Combining the 2005–2020 panel and the smart city (SC) construction policy in China, this article employs the difference in differences (DID) method to study the impact of informatization construction on labour spatial allocation. We found that informatization construction significantly attracted labour and improved labour spatial allocation. After the SC construction policy’s implementation, compared with non-SCs, the average increase of SC pilots in the labour force is about 0.78 million people. Besides, stimulating economic growth, improving the environment, and enhancing public services are the mechanisms of the SC construction policy on labour spatial allocation. Furthermore, this policy effect has heterogeneous industry department and category characteristics. The Tertiary and secondary industry department receives a more significant impact.
Journal: Applied Economics
Pages: 2337-2356
Issue: 19
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186367
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186367
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# input file: RAEC_A_2186369_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Olivier Beaumais
Author-X-Name-First: Olivier
Author-X-Name-Last: Beaumais
Author-Name: Mireille Chiroleu-Assouline
Author-X-Name-First: Mireille
Author-X-Name-Last: Chiroleu-Assouline
Title: Unaware corporate social responsibility: impact of firm size, motivations and external pressures
Abstract:
We explore differences in firms’ attitudes towards corporate social responsibility (CSR). Using a unique dataset covering 8,857 French firms, collected by the National Institute of Statistics and Economic Studies (INSEE), we identify firms conducting conscious CSR and others with effective but unaware CSR activities. We then construct three CSR pillar scores for each firm, using Mokken scale analysis, a form of non-parametric item response analysis. The CSR scores, along with responses to specific questions, allow us to characterize firms that implement conscious or unaware CSR. We then estimate simple probit and count data models to show that a significant share of firms are in fact actually engaged in unaware CSR, with no monotonic size effect. Cooperation with external actors such as NGOs mitigates the effect of firm size on the likelihood of conducting unaware CSR, while the effect of NGO campaigns against large firms is mainly to increase the environmental score of small firms in the same industry.
Journal: Applied Economics
Pages: 2386-2406
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186369
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186369
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# input file: RAEC_A_2187038_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Bizhe Wang
Author-X-Name-First: Bizhe
Author-X-Name-Last: Wang
Author-Name: Yujie Liu
Author-X-Name-First: Yujie
Author-X-Name-Last: Liu
Title: Calculating regional innovation efficiency and factor allocation in China: the price signal perspective
Abstract:
Based on the improved HK model, we use data on Chinese listed companies and incopat invention patents from 2015 to 2020 to estimate the monetary value of invention patents in terms of price signals. We also measure innovation efficiency and resource allocation at the regional level. The results indicate that the average value of each invention patent is 837 900 yuan, with an average value for each enterprise of 23.86 million yuan. Regionally, the eastern region has the highest innovation efficiency, which is 3 and 3.42 times that of the central and western region, respectively. Further, we calculate the results by province and industry and divide them into three types: seeking progress in stability, accelerating catch-up and structural adjustment according to the innovation characteristics, and put forward targeted development plans for different types of province and industry. Finally, we explore the factors influencing innovation efficiency and resource allocation of enterprises in different regions from the aspect of innovation policy and enterprise characteristics. We find that government subsidies can promote the innovation ability of inland enterprises, and enterprises with certain scale and long survival times may have stronger innovation ability.
Journal: Applied Economics
Pages: 2451-2469
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2187038
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# input file: RAEC_A_2187037_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Juan He
Author-X-Name-First: Juan
Author-X-Name-Last: He
Author-Name: Xiaodong Du
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Du
Author-Name: Wei Tu
Author-X-Name-First: Wei
Author-X-Name-Last: Tu
Title: Can corporate digital transformation alleviate financing constraints?
Abstract:
Financing constraints present a significant challenge for enterprises. Given China’s push for the integration of digital technology and the real economy, it is crucial to examine the impact of corporate digital transformation on financing. Using data from Chinese A-share listed companies from 2010 to 2019, we construct the digital transformation indicator employing a machine learning approach and find that corporate digital transformation can significantly alleviate financing constraints. The mechanism analysis shows that digital transformation improves corporate financing by reducing information asymmetry and transaction costs on both sides of financing and enhancing corporate performance. Combined with the mechanism analysis, we reveal that digital transformation has a significant effect on the alleviation of financing constraints among firms with private ownership, higher levels of interaction with investors, more developed financial environments and more intermediaries marketed in their locations, higher proportions of highly skilled workers, and better matching of digital technologies used for transformation. We explore micro-level measurement methods of corporate digital transformation, contributes to the literature on the economic consequences of digital transformation, and enriches the research on enterprise responses to financing constraints. The findings have important implications for promoting corporate digital transformation practices and for understanding coping strategies of different firms.
Journal: Applied Economics
Pages: 2434-2450
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2187037
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187037
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# input file: RAEC_A_2182405_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Eun Jung Lee
Author-X-Name-First: Eun Jung
Author-X-Name-Last: Lee
Author-Name: Yu Kyung Lee
Author-X-Name-First: Yu Kyung
Author-X-Name-Last: Lee
Author-Name: Ryumi Kim
Author-X-Name-First: Ryumi
Author-X-Name-Last: Kim
Title: Profitability and herding of trade-based pump-and-dump manipulation
Abstract:
We use the Korea Stock Exchange’s complete intraday order and trade data in a dataset that identifies individual accounts to examine whether trade-based pump-and-dump manipulators can trade profitably and whether other investors herd after the manipulation. The results show that other investors place more buy orders on stocks with higher manipulative buying volume and that more new investors buy such stocks. We also find that the trade-based pump-and-dump manipulation is profitable on average, both gross and net of transaction costs. Manipulators who have higher trading volume, more experience with manipulation, and less frequent transactions are likely to achieve larger profits. We also find that this type of manipulation is far more pervasive in the emerging market.
Journal: Applied Economics
Pages: 2375-2385
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2182405
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2182405
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Handle: RePEc:taf:applec:v:56:y:2024:i:20:p:2375-2385
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# input file: RAEC_A_2186370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Kai Dang
Author-X-Name-First: Kai
Author-X-Name-Last: Dang
Title: RTAs and firm energy-related carbon emissions: from the perspective of trade creation and trade diversion in intermediates import
Abstract:
Regional trade agreements (RTAs) are playing an increasingly crucial role in the current international trade pattern of ebbing globalization, making it increasingly important to comprehensively analyse RTAs’ impacts. Trade creation and trade diversion have been hot-button topics on RTAs since Jacob Viner raised, many scholars had conducted extensive research on their economic impacts, but little is known about their environmental impacts. In this paper, we take the China-ASEAN Free Trade Area (CAFTA) as an example, comprehensively consider the tariff, geographic and temporal dimensions of trade to characterize the proxy variables that identify the two effects. Based on data of Chinese enterprises from 2002 to 2007, we empirically tests the impact of the trade effects on energy-related carbon emissions of enterprises from a fixed-effects panel model. Research finds the trade creation effect increases enterprises’ $${\rm{C}}{{\rm{O}}_2}$$CO2 emissions intensity, whereas the trade diversion effect reduces and is more influential. Further mechanism analyses show coal use status of enterprises, especially coal consumption, utilization intensity, and share in primary energy consumption are important influence channels. Additionally, the scale and factors composition of production and technical efficiency are also important mechanisms. Furthermore, enterprises in different regions and of different ownership types show heterogeneity.
Journal: Applied Economics
Pages: 2407-2421
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186370
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186370
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# input file: RAEC_A_2187039_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rajeev K. Goel
Author-X-Name-First: Rajeev K.
Author-X-Name-Last: Goel
Author-Name: Ummad Mazhar
Author-X-Name-First: Ummad
Author-X-Name-Last: Mazhar
Title: Are the informal economy and cryptocurrency substitutes or complements?
Abstract:
This research considers a new dimension of the effects of the underground sector by examining the spillovers on cryptocurrency holdings. Cryptocurrencies offer a relatively greater ability to dodge taxes and ensure the anonymity of holders, providing attractive avenues for underground operators to stash their informal-sector earnings. Our results, based on data from more than 50 nations, show that a greater prevalence of the underground economy in a nation is indeed associated with greater cryptocurrency holdings. This result holds across an alternative measure of the shadow economy, and when the bi-directional causality between the shadow economy and cryptocurrency holdings is considered. In other noteworthy findings, greater FDI crowded out cryptocurrency holdings, while greater financial globalization and greater economic uncertainty, ceteris paribus, increased them.
Journal: Applied Economics
Pages: 2470-2481
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2187039
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187039
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# input file: RAEC_A_2186371_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: Persistence and long memory in monetary policy spreads
Abstract:
The overnight money market rate is a key monetary policy tool. In recent years, central banks worldwide have developed new monetary policy strategies aimed at keeping its deviations from the policy rate small and short-lived. This paper describes the main instruments used for this purpose by the US Fed, the ECB and the BoE and also their policy responses to the Great Financial Crisis (GFC). Fractional integration and long-memory methods are then applied to investigate how those affected the persistence of policy spreads (i.e. the difference between overnight rates and policy rates) during different sub-periods. It is found that this increased sharply during the GFC but has fallen back in recent years. In the case of the ECB the introduction of the new €-STR benchmark in particular appears to have made monetary policy more effective.
Journal: Applied Economics
Pages: 2422-2433
Issue: 20
Volume: 56
Year: 2024
Month: 04
X-DOI: 10.1080/00036846.2023.2186371
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2186371
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# input file: RAEC_A_2188167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jiangxue Wen
Author-X-Name-First: Jiangxue
Author-X-Name-Last: Wen
Author-Name: Zongbing Deng
Author-X-Name-First: Zongbing
Author-X-Name-Last: Deng
Title: Internet development, resource allocation and total factor productivity: Empirical evidence from China’s listed manufacturing enterprises
Abstract:
Since the beginning of the 21st century, the new generation of information technology represented by the Internet has swept the world, driving a new round of scientific and technological revolution as well as industrial transformation. In this context, an in-depth discussion of the relationship between Internet development and Total Factor Productivity (TFP) is of great significance for promoting the high-quality development of the economy. Based on 2006 to 2020 annual reports of listed manufacturing enterprises in China, this paper takes resource allocation into the analysis framework of the impact of Internet development on manufacturing TFP to analyse the internal mechanism. The conclusions reveal that Internet development has not only a direct positive effect on manufacturing TFP but also a significant indirect promoting effect on manufacturing TFP by improving resource allocation efficiency. The resource allocation effect of Internet development on manufacturing TFP is mainly realized through the improvement of the allocation of labour factors. Furthermore, resource allocation can strengthen the nonlinear spillover effects of Internet development on manufacturing TFP. Therefore, enough attention should be paid to the improvement of resource allocation in the process of relying on Internet development to improve manufacturing TFP.
Journal: Applied Economics
Pages: 2497-2508
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2188167
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2188167
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# input file: RAEC_A_2192032_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Adrian R. Bell
Author-X-Name-First: Adrian R.
Author-X-Name-Last: Bell
Author-Name: Chris Brooks
Author-X-Name-First: Chris
Author-X-Name-Last: Brooks
Author-Name: Rohan Brooks
Author-X-Name-First: Rohan
Author-X-Name-Last: Brooks
Title: Are English football players overvalued?
Abstract:
It is often suggested by fans, the media, and football commentators that English players are over-valued and receive higher salaries than those of comparable players from different countries. This study examines whether the suggestion can be empirically substantiated. Using a unique database covering all of the European elite leagues, we show that there is an English player value premium of around 40% and a wage premium of 25%. Exploring the reasons for this phenomenon in a regression setting, we find that the excess valuation and salary differential can be partly justified by several factors. First, and most importantly, there is a higher value attributed and wages paid to players in the English Premier League (EPL); second, that English players are more likely to play as strikers than in other positions in EPL clubs; third, that their performance in some positions is somewhat better than the average of players from other nations; fourth, that there are fewer of them in the top European leagues, leading to a shortage in supply. There is, however, evidence that the higher valuation of English attackers and the higher salaries of English attackers and of English midfielders evades explanation by any of these groups of variables.
Journal: Applied Economics
Pages: 2568-2584
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2192032
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2192032
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# input file: RAEC_A_2187040_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhongwu Li
Author-X-Name-First: Zhongwu
Author-X-Name-Last: Li
Title: Does self-esteem affect women’s intra-household bargaining power: evidence from China
Abstract:
This paper addresses the question of whether self-esteem affects women’s intra-household bargaining power by using the National Survey on Women’s Social Status of China (NSWSS). While providing a conceptual framework, the study employs econometric models to show that self-esteem positively affects women’s intra-household bargaining power. The analyses, using an instrument-variable approach, and using different indicators of household bargaining power, further collaborate the robustness of our conclusion. Overall, the empirical study provides important insights on future academic research and policy measures in women’s empowerment.
Journal: Applied Economics
Pages: 2483-2496
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2187040
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2187040
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# input file: RAEC_A_2192033_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Antonio Marasco
Author-X-Name-First: Antonio
Author-X-Name-Last: Marasco
Author-Name: Ahmed M Khalid
Author-X-Name-First: Ahmed M
Author-X-Name-Last: Khalid
Author-Name: Fatima Tariq
Author-X-Name-First: Fatima
Author-X-Name-Last: Tariq
Title: Does technology shape the relationship between FDI and growth? A panel data analysis
Abstract:
The theoretical literature on the FDI-growth relationship suggests that FDI with high technological content might play a peculiar role. To investigate the existence and magnitude of this peculiar effect, we collected data for 28 countries over the period 1989 to 2019 and used GMM techniques for empirical estimation. We employed the U.N. International Standard Classification (ISIC) Revision 3 to classify FDI data and follow the criteria laid down by the Organization for Economic Cooperation and Development (OECD) to distinguish FDI data by technological content. The empirical findings of this article confirm that technology plays an important role in determining the FDI-Growth relationship. Interestingly, the empirical evidence supports a U-shaped relationship between FDI and economic growth when FDI is disaggregated by different technological contents. More specifically, we find strong evidence that in the manufacturing sector, FDI with a higher technological content exhibits a positive association with growth in the host country. We also find evidence pointing towards a positive relationship between FDI and growth in the host country at the other end of the technology spectrum (low-tech). Further investigation confirms the robustness of these findings across different estimation techniques as well as across different sampling strategies.
Journal: Applied Economics
Pages: 2544-2567
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2192033
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2192033
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# input file: RAEC_A_2192031_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Helder Ferreira de Mendonça
Author-X-Name-First: Helder Ferreira
Author-X-Name-Last: de Mendonça
Author-Name: Natália Ferreira Trigo
Author-X-Name-First: Natália Ferreira
Author-X-Name-Last: Trigo
Title: What is the effect of imported inflation and central bank credibility on the poor and rich?
Abstract:
This study analyzes two phenomena regarding the inflation of the poor and rich. Firstly, considering that imported inflation is a source of inflation, we investigate whether the harmful effect of imported inflation is higher for the poor than the rich. Secondly, assuming that central bank credibility helps keep inflation under control and that the poor are more susceptible to the damaging effect of the inflation tax, we evaluate whether the credibility is more beneficial to the poor. Based on data from the Brazilian economy, the findings indicate a higher effect of imported inflation on food inflation and poor households. In contrast, central bank credibility effectively reduces inflation for the poor.
Journal: Applied Economics
Pages: 2520-2543
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2192031
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2192031
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# input file: RAEC_A_2288047_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hyuck Jin Lee
Author-X-Name-First: Hyuck Jin
Author-X-Name-Last: Lee
Title: Comparison of suppliers and consumers’ choice factors in the online education market
Abstract:
This study compares choice factors between online education suppliers and consumers. While research on online education’s effectiveness in public institutions is extensive, there is a scarcity of studies comparing choice factors in the online education market. To bridge this gap, a survey was conducted among paid online learners to understand their intentions, preferred areas of study, and engagement levels. Data were analysed using SPSS 25.0, including frequency analysis, validity assessments, and multiple regression analysis to examine relationships between choice factors and satisfaction. Supplier choice factors included education costs and location, while consumer choice factors encompassed instructor expertise, content quality, and education effectiveness. This study’s results offer valuable insights into the online education market, highlighting distinct priorities for suppliers and consumers. This research contributes to a better understanding of the online education landscape, providing critical insights for suppliers and policymakers to tailor offerings, improve quality, and optimize online education’s effectiveness. Acknowledging consumer preferences and continuously enhancing services are crucial in meeting learners’ evolving needs in this dynamic sector.
Journal: Applied Economics
Pages: 2585-2598
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2288047
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2288047
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# input file: RAEC_A_2188168_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sinem Derindere Köseoğlu
Author-X-Name-First: Sinem
Author-X-Name-Last: Derindere Köseoğlu
Author-Name: Burcu Adıgüzel Mercangöz
Author-X-Name-First: Burcu Adıgüzel
Author-X-Name-Last: Mercangöz
Author-Name: Khalid Khan
Author-X-Name-First: Khalid
Author-X-Name-Last: Khan
Author-Name: Suleman Sarwar
Author-X-Name-First: Suleman
Author-X-Name-Last: Sarwar
Title: The impact of the Russian-Ukraine war on the stock market: a causal analysis
Abstract:
The study assumes the causal effects of the Russian-Ukraine war on the Moscow Exchange index based on forecasting the counterfactual market response. The findings suggest that the Ukraine war has a detrimental impact on the index; the effects are especially more pronounced at the beginning of the war. The results indicate a rapid divergence from counterfactual predictions and the actual stock index was consistently lower than would have been expected in the absence of war. The two curves suggest a reconvening pattern in the stock market when the stock market resumes its activities. The estimate of the Moscow Exchange index decline following the conflict and reaching the bottom is shown in the point-wise causal effect. The cumulative causal effect adds up to the causal effect in the course of time. In relative terms, the response variable decreased by −51%. This means that the negative impact observed during the intervention period is statistically significant. The diverse economic sectors should have access to market information and pay close attention to the effects of the conflict on the stock market. Investment decisions and policy adjustments should be based on the evolution and changes in the conflict.
Journal: Applied Economics
Pages: 2509-2519
Issue: 21
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2188168
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2188168
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# input file: RAEC_A_2193722_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Soo-A Shim
Author-X-Name-First: Soo-A
Author-X-Name-Last: Shim
Author-Name: Haerin Shim
Author-X-Name-First: Haerin
Author-X-Name-Last: Shim
Author-Name: Tae Sup Shim
Author-X-Name-First: Tae Sup
Author-X-Name-Last: Shim
Title: Does procedural justice in a tax audit situation affect taxpayers’ acceptance of tax audit assessments?
Abstract:
This study examines the effects of procedural justice and authority power on corporate taxpayers’ decisions to accept tax audit assessments via an experiment related to a hypothetical tax audit. We find that authority power but not procedural justice increases corporate taxpayers’ acceptance of tax authority decisions in a tax audit situation. However, when authority power is low, there is a significant effect of procedural justice in a tax audit on taxpayers’ aggressiveness in their decisions to accept tax audit assessments. According to the results, a combination of policy measures that enhance procedural justice and traditional deterrence measures warrants consideration to increase overall corporate tax compliance.
Journal: Applied Economics
Pages: 2629-2645
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2193722
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# input file: RAEC_A_2193721_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ammar Ali Gull
Author-X-Name-First: Ammar Ali
Author-X-Name-Last: Gull
Author-Name: Rizwan Mushtaq
Author-X-Name-First: Rizwan
Author-X-Name-Last: Mushtaq
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Author-Name: Phuong Tra Tran
Author-X-Name-First: Phuong Tra
Author-X-Name-Last: Tran
Title: COVID-19 adaptive strategy and SMEs’ access to finance
Abstract:
The recent outbreak of COVID-19 has had colossal repercussions for all economic agents including households, corporations, and governments worldwide. Each economic agent responded in their own way to mitigate or at least diminish the scale of that impact. Small and medium-sized enterprises (SMEs) also countered the COVID-19 pandemic to their highest capacity despite being more vulnerable to crises. Many SMEs experienced shutdowns or declared bankruptcy due to the ineptitude and lack of financial resources or effective strategic response to cope with this unprecedented shock. In this paper, we assess the impact of the COVID-19 pandemic coping strategies such as adjusting the process and product, shifting business activity online, and remote working arrangements on SMEs’ access to finance. Using the World Bank’s COVID-19 impact survey data collected between 2020 and mid-2021 from 42 countries, we find that better strategies adopted by SMEs increase their likelihood of getting new credit from government and commercial banks. The results remain robust to alternative test settings. Our findings offer significant and timely contributions to SMEs’ access to finance and to the practicing managers on adopting and adjusting strategies in response to crises or disruptions.
Journal: Applied Economics
Pages: 2615-2628
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2193721
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2193721
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Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2615-2628
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# input file: RAEC_A_2198195_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Arshad Hasan
Author-X-Name-First: Arshad
Author-X-Name-Last: Hasan
Author-Name: Waqas Anwar
Author-X-Name-First: Waqas
Author-X-Name-Last: Anwar
Author-Name: Muhammad Kaleem Zahir-Ul-Hassan
Author-X-Name-First: Muhammad Kaleem
Author-X-Name-Last: Zahir-Ul-Hassan
Author-Name: Ammad Ahmed
Author-X-Name-First: Ammad
Author-X-Name-Last: Ahmed
Title: Corporate governance and tax avoidance: evidence from an emerging market
Abstract:
This study investigates the impact of corporate governance practices (namely board characteristics, ownership structure, and audit committee characteristics) on corporate tax avoidance. For this purpose, this study uses generalised least squares regression on a sample of 138 companies listed on the Pakistan Stock Exchange. Ten-year data from 2009 to 2018 are collected from published annual reports, comprising 1380 firm-year observations. The findings highlight that board independence, concentrated ownership, and audit committee gender diversity are negatively associated with tax avoidance. Conversely, managerial ownership and audit committee independence positively influence aggressive tax behaviour. Additional analysis reveals that these impacts are nonlinear and change with the different levels of tax avoidance. Enhanced governance stifles tax avoidance at lower levels; however, it encourages tax avoidance when firms are already aggressively avoiding taxes. This scenario represents a ‘double down’ behaviour depicted by the Pakistani corporate sector. This is one of the foremost studies to explore the impact of corporate governance on tax avoidance in Pakistan. It contributes to the literature by examining the impact of under-researched factors such as board meetings and audit committee characteristics and provides insights into the conflicting findings on board characteristics and ownership structure.
Journal: Applied Economics
Pages: 2688-2704
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2198195
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# input file: RAEC_A_2198194_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Douglas Kai Tim Wong
Author-X-Name-First: Douglas Kai Tim
Author-X-Name-Last: Wong
Author-Name: Ronald MacDonald
Author-X-Name-First: Ronald
Author-X-Name-Last: MacDonald
Title: Identifying long-run relationships between the exchange rate, interest rates and stock prices
Abstract:
This study investigates the long-run relationship between the exchange rate, interest rate, stock prices and output. The results demonstrate that a single restricted relationship is accepted when a structural break is incorporated into the cointegrating vector. Compared with the hypothesis tests on the single restricted relationship, the hypothetical structure comprising multiple relationships in the cointegrating vector is generally accepted in most countries, confirming the interaction between the relationships in the system. Our findings regarding the real exchange rate and stock price differentials appear to contradict the uncovered equity returns parity condition, whereas the relationship between the real exchange rate and interest rate differentials is consistent with the flexible price approach.
Journal: Applied Economics
Pages: 2671-2687
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2198194
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2198194
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Handle: RePEc:taf:applec:v:56:y:2024:i:22:p:2671-2687
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# input file: RAEC_A_2198193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Liqin Hu
Author-X-Name-First: Liqin
Author-X-Name-Last: Hu
Author-Name: Qiuyan Zheng
Author-X-Name-First: Qiuyan
Author-X-Name-Last: Zheng
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: Risk spillover effect of global financial markets in the context of novel coronavirus epidemic
Abstract:
Since the outbreak of COVID-19 pandemic, the financial markets of many countries have been impacted severely. In this context, based on the event study method and orthogonal decomposition method, this paper studies the impact of the novel coronavirus epidemic on the spillover effect of global financial risk, and further analyses the financial risk transmission channels of various countries. The results suggest that the novel coronavirus significantly increases the overall risk level of global financial markets, and exacerbates the contagion effects of financial risk through the global risk spillover network. In addition, the analysis of transmission channels reveals the source and direction of the financial risks in each country, manifesting as the unidirectional risk transmissions from developed countries to developing countries and the bidirectional risk contagion paths of countries with similar level of development. Therefore, facing the challenges of public health emergencies such as novel coronavirus epidemic, the major economies should strengthen multilateral cooperation and promote the coordination of macroeconomic policies to jointly defuse global systemic financial risk.
Journal: Applied Economics
Pages: 2654-2670
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2198193
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# input file: RAEC_A_2192034_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Pu Chen
Author-X-Name-First: Pu
Author-X-Name-Last: Chen
Author-Name: Chunyang Wang
Author-X-Name-First: Chunyang
Author-X-Name-Last: Wang
Title: FDI, spillover, and government subsidy: Micro-Econometric evidence from China
Abstract:
By analysing comprehensive firm data from 1999 to 2013 categorized by zip code, we find that Foreign Direct Investment (FDI) companies consistently received more local government subsidies in China. When comparing FDI within the same county and year, it becomes evident that FDI creates positive growth and productivity spillovers for other businesses in the same zip code. Furthermore, there is additional evidence to support the amenities channel as a possible productivity spillover channel. This paper makes a significant contribution to the debate regarding FDI's spillover effects at a disaggregated level.
Journal: Applied Economics
Pages: 2599-2614
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2192034
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# input file: RAEC_A_2198192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chung Choe
Author-X-Name-First: Chung
Author-X-Name-Last: Choe
Author-Name: Daeho Lee
Author-X-Name-First: Daeho
Author-X-Name-Last: Lee
Author-Name: Koangsung Choi
Author-X-Name-First: Koangsung
Author-X-Name-Last: Choi
Title: Job training and firm efficiency: evidence from a meta-frontier analysis
Abstract:
This study analyzes the effect of vocational training on technology efficiency (TE) using Workplace Panel Survey data from South Korea. We apply both stochastic frontier analysis (SFA) and meta-frontier analysis (MFA) to compare the TEs of firms with vocational training against the counterpart without vocational training. Our findings from the SFA, which assumes a homogeneous level of technology across comparison groups, confirm that firms without vocational training are more efficient. MFA, which is used to compare the relative efficiencies of different skill levels, provides more intuitive estimation results. Namely, companies that conduct vocational training are closer to the meta-frontier – higher efficiency – than those that do not.
Journal: Applied Economics
Pages: 2646-2653
Issue: 22
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2198192
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# input file: RAEC_A_2200233_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rui Xue
Author-X-Name-First: Rui
Author-X-Name-Last: Xue
Author-Name: JiaQi Zhang
Author-X-Name-First: JiaQi
Author-X-Name-Last: Zhang
Author-Name: HuiZheng Liu
Author-X-Name-First: HuiZheng
Author-X-Name-Last: Liu
Author-Name: KeYu Li
Author-X-Name-First: KeYu
Author-X-Name-Last: Li
Author-Name: Claude Baron
Author-X-Name-First: Claude
Author-X-Name-Last: Baron
Title: How does outward foreign direct investment influence manufacturing industry sustainable growth in China?
Abstract:
With the economic development of various countries entering a new stage, sustainable development has become a focus of development transformation. It is well known that outward foreign direct investment (OFDI) drives the development of the manufacturing industry. However, the OFDI’s influence mechanism on the sustainable development of the manufacturing industry still needs to be clarified, and its specific action path requires further exploration. This study thus constructs a performance evaluation indicator system for the manufacturing industry from sustainable perspective. Based on interprovincial panel data of China’s 30 provinces from 2008 to 2017, the entropy method is used to measure and analyse the sustainable development level of the manufacturing industry in each province. Second, the influence of OFDI on the sustainable development level of manufacturing industry is verified using a fixed effects model. Finally, through the establishment of the mediation effect and threshold effect models, we conduct in-depth research on its specific mechanism, testing the mediation effect of technological progress and threshold effect of openness. The results reveal that government departments can enhance the sustainable development of manufacturing industry by promoting technological progress through OFDI. Improving the degree of openness can also promote sustainable development in the manufacturing industry.
Journal: Applied Economics
Pages: 2752-2768
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200233
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# input file: RAEC_A_2200231_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rui Li
Author-X-Name-First: Rui
Author-X-Name-Last: Li
Author-Name: Jing Rao
Author-X-Name-First: Jing
Author-X-Name-Last: Rao
Author-Name: Liangyong Wan
Author-X-Name-First: Liangyong
Author-X-Name-Last: Wan
Title: Performance feedback and enterprise digital transformation
Abstract:
This study draws on the behavioural theory of the firm to examine the impact of performance feedback on enterprise digital transformation. We develop a set of hypotheses and empirically test them using panel data of Chinese A-share listed firms from 21 to 2019. The fixed-effects panel data models serve as an estimation technique. Empirical results show that as performance falls below aspiration, the degree of enterprise digital transformation first increases and then decreases, as performance rises above aspiration, the degree of enterprise digital transformation first decreases and then increases. That is, there is an inverted U-shaped relationship between negative performance feedback and enterprise digital transformation and a U-shaped relationship between positive performance feedback and enterprise digital transformation. Moreover, CEO openness significantly intensifies digital transformation in response to negative performance feedback, and industrial digitalization positively moderates the effects of positive performance feedback on digital transformation. Our findings highlight the importance of performance feedback on enterprise digital transformation, not only theoretically contributes to the research on digital transformation and behavioural theory, but also have notable implications for practice.
Journal: Applied Economics
Pages: 2720-2737
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200231
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# input file: RAEC_A_2203450_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Madhu Sudan Mohanty
Author-X-Name-First: Madhu Sudan
Author-X-Name-Last: Mohanty
Title: Effect of religious attendance on the middle-aged worker’s wage in the United States: a possible causal connection
Abstract:
The current study explores the possibility of a causal connection between a worker’s religious attendance and wage. Numerous studies in the literature have already demonstrated a positive correlation between these two variables. For effective policy applications, however, it is necessary to find out whether there exists a causal connection between them. The study uses the US data and tests the hypothesis that religious attendance of middle-aged workers has a positive causal effect on their wages. Following an instrumental variable approach, the current study tests this hypothesis and demonstrates that religious attendance is very much likely to have a causal effect on middle-aged workers’ earnings. This has important policy implications and thus deserves further attention from researchers and policymakers.
Journal: Applied Economics
Pages: 2790-2805
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203450
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# input file: RAEC_A_2203451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Gautam Hazarika
Author-X-Name-First: Gautam
Author-X-Name-Last: Hazarika
Author-Name: Maroula Khraiche
Author-X-Name-First: Maroula
Author-X-Name-Last: Khraiche
Author-Name: Levent Kutlu
Author-X-Name-First: Levent
Author-X-Name-Last: Kutlu
Title: Gender equity in labor market opportunities and aggregate technical efficiency: a case of equity promoting efficiency
Abstract:
This study applies a panel data stochastic frontier analysis to country data towards examining the effect of gender equity in labour market opportunities upon efficiency in the production of GDP. It finds that aggregate technical efficiency is improved by a widening of women’s labour market opportunities as indicated by a rise in their share of employment, but that this effect is dampened by patriarchal cultural norms whose strength is measured by the proportion of the population tracing its ancestry to ethnic groups who adopted the plough as an agricultural implement. That aggregate technical efficiency rises in women’s share of employment is consistent with improvement in the average quality of the workforce when talented women’s entry to it is eased. That this effect is dampened by patriarchal cultural norms is consistent with them promoting a misallocation of employed women. Additionally, aggregate technical efficiency appears improved by democracy, the control of corruption, and trade-openness.
Journal: Applied Economics
Pages: 2806-2817
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203451
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203451
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# input file: RAEC_A_2200232_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Guohua Yu
Author-X-Name-First: Guohua
Author-X-Name-Last: Yu
Author-Name: Kai Liu
Author-X-Name-First: Kai
Author-X-Name-Last: Liu
Title: Foreign direct investment, environmental regulation and urban green development efficiency—An empirical study from China
Abstract:
This study investigates the existence of the pollution halo hypothesis in China. To realize the goals, an urban green development efficiency measuring framework was established applying SBM directional distance function and Malmquist-Luenberger index. Using linear panel model and nonlinear panel model and data of 284 cities in China from 2008 to 2019, we have found that the pollution halo hypothesis does exist in China because FDI increases urban green development efficiency. The mechanism analysis of introducing environmental regulation indicates that the impact of FDI on urban green development efficiency presents a ‘U-shaped’ feature. The implementation of strict environmental regulation can significantly increase the positive impact of FDI on the urban green development efficiency. In addition, the analysis of regional heterogeneity has shown that when the environmental regulation intensity exceeds the turning point, FDI in eastern and central China plays a significant positive role in urban green development efficiency, while that in western China is inhibitory effect. Our empirical results have suggested the Chinese government should further utilize the positive role of FDI in urban green development, including gradually and orderly implementing strict environmental protection regulatory policies, and implementing green energy conservation transformation projects for energy intensive industries.
Journal: Applied Economics
Pages: 2738-2751
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200232
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2200232
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# input file: RAEC_A_2200230_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jianwen Li
Author-X-Name-First: Jianwen
Author-X-Name-Last: Li
Author-Name: Yang Zhou
Author-X-Name-First: Yang
Author-X-Name-Last: Zhou
Author-Name: Jinyan Hu
Author-X-Name-First: Jinyan
Author-X-Name-Last: Hu
Author-Name: Feng Guo
Author-X-Name-First: Feng
Author-X-Name-Last: Guo
Title: Local bias versus home bias: Evidence from debt-based crowdfunding
Abstract:
Local bias and home bias are conventional phenomena in the financial market. This paper examines whether local bias and home bias exist in virtual loan transactions on the debt-based crowdfunding marketplace. Using loan-level and lender-level transaction data from a large crowdfunding marketplace in China and employing a potential-dyad approach, we find that lenders are more likely to invest in local borrowers rather than in their hometown borrowers, indicating that local bias exists in this virtual marketplace rather than home bias. More interestingly, the local bias is more pronounced for local lenders whose work area and hometown are the same than for moving lenders who leave their hometowns. Furthermore, lenders’ local bias is more pronounced if lenders (borrowers) are from more trust-propensity (trustworthy) regions. Finally, we find that lending to local borrowers cannot significantly increase the welfare of lenders. Various specifications, alternative dependent variables, and alternative potential-dyad sets show that our empirical-based results are robust.
Journal: Applied Economics
Pages: 2705-2719
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200230
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2200230
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# input file: RAEC_A_2200234_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Author-Name: Paulo Araújo
Author-X-Name-First: Paulo
Author-X-Name-Last: Araújo
Title: “It’s the average cost, mister!” – Explaining the recurrent dismissal of European soccer coaches
Abstract:
The professional survival of a coach can be explained by the ability of the team that he or she trains to achieve a reasonable number of points in relation to the total team’s budget. In this work, we test the microeconomic indicator of average cost as an important (and so far unassessed) dimension in the survival of a professional football coach in the face of recurrent defeats. For this purpose, we use empirical methods associated with survival analysis considering recurrent events. We analyse 1077 contract durations between the 2009/2010 and 2019/2020 seasons of the professional leagues in Spain, England, Italy, Germany, France and Portugal. We conclude that the average cost (total budget divided by points achieved in the national championships) is an important dimension. We also discuss other dimensions – such as clubs’ financial characteristics, neighbouring teams’ competitiveness or coaches’ individual characteristics – which, in certain leagues, also prove to be determinant.
Journal: Applied Economics
Pages: 2769-2789
Issue: 23
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2200234
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# input file: RAEC_A_2203454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaokun Wei
Author-X-Name-First: Xiaokun
Author-X-Name-Last: Wei
Author-Name: Yan Jiang
Author-X-Name-First: Yan
Author-X-Name-Last: Jiang
Author-Name: Tian Gan
Author-X-Name-First: Tian
Author-X-Name-Last: Gan
Title: Air pollution and entrepreneurship: evidence from China
Abstract:
Air pollution has become a major danger to human health and a hindrance to social and economic growth. This study endeavours to examine the impact of air pollution on entrepreneurial activities in China. Using registration data from 2000 to 2018, we find that severe air pollution can decrease the number of newly registered firms by about 36%, suggesting a negative effect on entrepreneurship. To strengthen the causal inference, we adopt the two-stage least square method to address the potential endogenous problems. The result is robust to different model settings and alternative measurements of air pollution. The study further delves into the mechanisms through which air pollution affects entrepreneurial activities, including brain drain, social capital, startup costs, and financial constraints. This study recommends effective environmental regulation policies to improve air quality as well as increase the attraction of mobile factors to alleviate the adverse impacts of air pollution on entrepreneurial activities.
Journal: Applied Economics
Pages: 2860-2874
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203454
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# input file: RAEC_A_2203458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Angelo Castaldo
Author-X-Name-First: Angelo
Author-X-Name-Last: Castaldo
Author-Name: Anna Rita Germani
Author-X-Name-First: Anna Rita
Author-X-Name-Last: Germani
Author-Name: Alessia Marrocco
Author-X-Name-First: Alessia
Author-X-Name-Last: Marrocco
Author-Name: Marco Forti
Author-X-Name-First: Marco
Author-X-Name-Last: Forti
Author-Name: Andrea Salustri
Author-X-Name-First: Andrea
Author-X-Name-Last: Salustri
Title: Drivers and frictions of workplace accidents: an empirical investigation of cross-country European heterogeneity
Abstract:
This paper presents an empirical investigation on the determinants of workplace accidents across Europe and focuses on the extent to which production-system characteristics (employment sectoral risk, size of firms, temporary contracts), business cycle and socio-economic factors (GDP, level of investments, unemployment, education) and other territorial controls (crime index) might account for cross-country heterogeneity. We use Eurostat data, and our panel is composed of 27 European countries over the period 2010–2018. Implementing different functional forms and estimation methodologies (pooled OLS, panel fixed and random effects models, system-GMM and semiparametric fixed effects model), we find robust evidence that productive-system structural characteristics, business cycle controls and the other territorial variables are effective in explaining European cross-country heterogeneity. Moreover, we find evidence of a nonlinear relationship between GDP and occupational accidents.
Journal: Applied Economics
Pages: 2931-2946
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203458
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203458
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# input file: RAEC_A_2203455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: António Afonso
Author-X-Name-First: António
Author-X-Name-Last: Afonso
Author-Name: Eduardo Rodrigues
Author-X-Name-First: Eduardo
Author-X-Name-Last: Rodrigues
Title: Is public investment in construction and in R&D, growth enhancing? A PVAR approach
Abstract:
We study the impacts of public investment, notably in construction and in R&D on economic growth and of crowding-out effects on private investment. For this purpose, we use Panel Vector Autoregression (PVAR) models and the Generalized Method of Moments (GMM) approach for 40 advanced and emerging countries from 1995 to 2019. Our findings are as follows: i) innovations in public investment have more positive effects on GDP growth and private investment in emerging economies; ii) the positive impulse of public investment on private sector is pronounced and significant in emerging economies; iii) government construction investment has a more positive effect on economic growth in emerging economies; iv) innovations in public construction crowd-out private investment spending in advanced countries; v) emerging economies benefit from public R&D investment; vi) the public investment multiplier of the full sample is 1.67, while it is 0.87 for advanced economies and 2.29 for emerging economies.
Journal: Applied Economics
Pages: 2875-2899
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203455
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# input file: RAEC_A_2203456_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Author-Name: Rim Boussaada
Author-X-Name-First: Rim
Author-X-Name-Last: Boussaada
Author-Name: Majdi Karmani
Author-X-Name-First: Majdi
Author-X-Name-Last: Karmani
Title: Financial inclusion and non-performing loans in MENA region: the moderating role of board characteristics
Abstract:
This paper investigates how financial inclusion affects credit risk in the MENA region. It also checks whether board characteristics can moderate this relationship. We use a sample of MENA banks from 2004 to 2017 and perform the system generalized method of moment approach. Through the usage and access dimensions, we find that financial inclusion reduces the level of non-performing loans. These results are robust using an index of financial inclusion. For board characteristics, findings indicate that only board size, duality, and independent directors significantly affect the level of NPLs. Our findings prove that MENA banks benefit from an interaction between greater financial inclusion and board characteristics. These insights are consistent with theorists and scholars who are working on each dimension separately. As an extension of their work, we find that the interaction significantly affects the NPLs ratio.
Journal: Applied Economics
Pages: 2900-2914
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203456
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203456
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# input file: RAEC_A_2203452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tao Lin
Author-X-Name-First: Tao
Author-X-Name-Last: Lin
Author-Name: Wenhao Qian
Author-X-Name-First: Wenhao
Author-X-Name-Last: Qian
Title: Water quality monitoring and mortality: evidence from China
Abstract:
Understanding the implementation of environmental regulation is essential to the design of environmental policy. The impact of water pollution regulation on mortality was examined in this study using a spatial regression discontinuity (RD) design based on China’s water quality monitoring system. Because water quality readings are important to the political promotion of officials and water quality monitoring stations only capture water pollution from upstream, local governments have an incentive to combat water pollution upstream, not downstream. Exploring this discontinuity in the stringency of regulations by linking the 2010 census microdata with water quality monitoring station location data in China, we found that households immediately upstream of a monitoring station faced a more than 11% reduction in household mortality compared to households immediately downstream of a monitoring station. Strict water quality supervision had a greater effect on mortality in rural households. The difference in mortality between upstream and downstream households was even greater for monitoring stations with high implementation and automatic monitoring technology. The results of this study improve our understanding of the health effects of environmental regulation, as well as the design and implementation of environmental regulation policies under a centralized political system.
Journal: Applied Economics
Pages: 2819-2835
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203452
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203452
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# input file: RAEC_A_2203457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Carla Fernandes
Author-X-Name-First: Carla
Author-X-Name-Last: Fernandes
Author-Name: Maria Rosa Borges
Author-X-Name-First: Maria Rosa
Author-X-Name-Last: Borges
Author-Name: Esselina Macome
Author-X-Name-First: Esselina
Author-X-Name-Last: Macome
Author-Name: Jorge Caiado
Author-X-Name-First: Jorge
Author-X-Name-Last: Caiado
Title: Measuring an equilibrium long-run relationship between financial inclusion and monetary stability in Mozambique
Abstract:
The present work aims to assess the existence of the relationship between financial inclusion and monetary stability in Mozambique based on the analysis of the VEC model for the period from 2005 to 2020. In addition to indicators of traditional banking institutions, this article goes further by also incorporating indicators relating to services of electronic money institutions with the objective of capturing the impact of digital financial services on financial inclusion and their role in financial stability. The long-term VEC model proved to be statistically significant and confirmed the existence of a long-term relationship between financial inclusion and monetary stability. The results also showed that the traditional financial inclusion and non-traditional digital financial inclusion drives the price stability, and in turn, monetary stability. The study concludes that the effectiveness of monetary policy in Mozambique depends on the predictive capacity of the monetary policy instruments, which are highly correlated, to financial inclusion. In this sense, the monetary authority must consider the need to incorporate financial inclusion variables, especially the non-traditional digital ones, in the transmission and forecasting model of the monetary policy rule, to capture the dynamics of financial inclusion segment and its contribution to price stability.
Journal: Applied Economics
Pages: 2915-2930
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203457
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203457
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# input file: RAEC_A_2203453_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Liliane Bonnal
Author-X-Name-First: Liliane
Author-X-Name-Last: Bonnal
Author-Name: Pascal Favard
Author-X-Name-First: Pascal
Author-X-Name-Last: Favard
Author-Name: Thomas Laurent
Author-X-Name-First: Thomas
Author-X-Name-Last: Laurent
Title: Better scan personalities than bodies? Prenatal care to enforce a pregnancy self-commitment
Abstract:
The purpose of this work was to measure the effect of the proper prenatal medical care on the health of newborns. This study was based on a survey conducted in France in 2010 by the National Institute for Health and Medical Research and the Ministry of Health. Three different definitions of newborn health were used, and the definition of proper prenatal care was set based on the recommendations of the Haute Autorité de Santé (HAS). The analysis was conducted based on propensity score methods to adjust for potential confounders. The results showed that proper prenatal may reduce some newborn health problems. But, if allowance is made for women’s behaviour or for mothers’ perceptions of their pregnancy, prenatal care could have no effect on newborn health. Moreover, it seems that a subpopulation of women would use prenatal care visits to enforce a self-commitment, to adhere to personal good conduct rather than for only medical reasons. Better information, prevention and customization of prenatal care according to pregnant women’s profiles might be more effective in terms of health and perhaps cost-saving.
Journal: Applied Economics
Pages: 2836-2859
Issue: 24
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203453
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203453
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# input file: RAEC_A_2203897_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhuolei Li
Author-X-Name-First: Zhuolei
Author-X-Name-Last: Li
Author-Name: Xundi Diao
Author-X-Name-First: Xundi
Author-X-Name-Last: Diao
Author-Name: Chongfeng Wu
Author-X-Name-First: Chongfeng
Author-X-Name-Last: Wu
Title: Attention allocation and return comovement when trading on smartphones: evidence from China
Abstract:
This paper investigates the impact of smartphone trading on investor attention allocation. We find a positive connection between smartphone trading ratio and return comovement. Smartphone traders relatively pay less attention to firm-specific information and more to information at the market level than computer-based traders. The impact of smartphone trading is positively correlated to the Internet searching level but negatively correlated to social media discussion intensity and analyst following. We also show that market boom and crush would increase the effect of smartphone trading on attention allocation.
Journal: Applied Economics
Pages: 3011-3031
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203897
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203897
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# input file: RAEC_A_2203461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Junhao Zhong
Author-X-Name-First: Junhao
Author-X-Name-Last: Zhong
Author-Name: Yilin Zhong
Author-X-Name-First: Yilin
Author-X-Name-Last: Zhong
Author-Name: Minghui Han
Author-X-Name-First: Minghui
Author-X-Name-Last: Han
Author-Name: Tianjian Yang
Author-X-Name-First: Tianjian
Author-X-Name-Last: Yang
Author-Name: Qinghua Zhang
Author-X-Name-First: Qinghua
Author-X-Name-Last: Zhang
Title: The impact of AI on carbon emissions: evidence from 66 countries
Abstract:
This study aims to address debate in previous studies on whether AI has a positive or negative effect on carbon emission reduction. We used quantile regression and PSTR models to study the diverse impacts of AI on carbon emissions in 66 countries from 1993–2019. There were three main findings in this paper. First, the impact of AI on carbon emissions varies across countries, and its effect on carbon reduction is mainly found in high-carbon emission and high-income countries. Second, the industrial structure environment of different countries affects the role of AI in carbon reduction, with its marginal effect in limiting emissions decreasing with the rise of secondary industrial structures. Third, the impact of AI varies in countries based on their different demographic structures. The marginal effect of AI on carbon emission reduction increases in places with older populations. This study offers unique insight into the heterogeneous impact of AI on CO2 emissions. Our analysis confirms the importance of industrial and demographic structures in promoting carbon emission reduction. We provide effective policy recommendations for economic development and environmental governance.
Journal: Applied Economics
Pages: 2975-2989
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203461
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203461
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# input file: RAEC_A_2203459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Denis Anne
Author-X-Name-First: Denis
Author-X-Name-Last: Anne
Author-Name: Sylvain Chareyron
Author-X-Name-First: Sylvain
Author-X-Name-Last: Chareyron
Author-Name: Marie-Axelle Granié
Author-X-Name-First: Marie-Axelle
Author-X-Name-Last: Granié
Author-Name: Yannick L’Horty
Author-X-Name-First: Yannick
Author-X-Name-Last: L’Horty
Title: Gender Gap in Access to the Driving Licence: Experimental Evidence from France
Abstract:
In this article, we assess the gender difference in response from driving schools to a request for information about the requirements to pass the driving licence. To this purpose, we created fictitious profiles for two young candidates seeking a driving licence training, a woman and a man, who were similar in all other aspects. We conducted two waves of experiment on 290 driving schools randomly selected from an exhaustive list of French driving schools. The feedback received from driving schools that responded to both candidates is examined to investigate differences in treatment between the male and female applicants. Our analysis shows that driving schools propose a slightly significantly higher maximum number of hours of preparation for the road test when the candidate is a woman: on average, driving schools propose 1.5 more hours of training to women than to men. On the other hand, we do not find a significant gender difference in the price of the training offered and few differences in other variables related to the content of the response.
Journal: Applied Economics
Pages: 2947-2958
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203459
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203459
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# input file: RAEC_A_2203898_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Corina Paraschiv
Author-X-Name-First: Corina
Author-X-Name-Last: Paraschiv
Author-Name: Nawel Ayadi
Author-X-Name-First: Nawel
Author-X-Name-Last: Ayadi
Author-Name: Xavier Rousset
Author-X-Name-First: Xavier
Author-X-Name-Last: Rousset
Author-Name: Monica Turinici
Author-X-Name-First: Monica
Author-X-Name-Last: Turinici
Title: Consumer vulnerability to dynamic pricing in online environments
Abstract:
This article examines consumer vulnerability perceptions of dynamic pricing in online environments. Based on an online survey of 763 French web-users, we show that dynamic pricing generates a feeling of being vulnerable and a perceived loss of control over the transaction process. A bivariate probit analysis of these two dimensions of consumer vulnerability is performed, allowing to highlight their connection, but also their different nature. While consumer feeling of being vulnerable is triggered by unethicality and unfairness perceptions, loss of control relies on the perception of dynamic prices as illegal, unacceptable, and unpredictable. Consumer displeasure is identified as the only factor with an overall effect on consumer vulnerability. Our findings suggest that firms opting for dynamic pricing should adopt a careful and cautious approach given the potential of this pricing strategy to generate consumer vulnerability. Regulation appears as a promising tool to fight against consumer perception of loss of control, but not their feeling of being vulnerable.
Journal: Applied Economics
Pages: 3032-3047
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203898
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203898
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# input file: RAEC_A_2203462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Emmanuel Mamatzakis
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Mamatzakis
Author-Name: Steven Ongena
Author-X-Name-First: Steven
Author-X-Name-Last: Ongena
Author-Name: Pankaj C. Patel
Author-X-Name-First: Pankaj C.
Author-X-Name-Last: Patel
Author-Name: Mike Tsionas
Author-X-Name-First: Mike
Author-X-Name-Last: Tsionas
Title: A Bayesian policy learning model of COVID-19 non-pharmaceutical interventions
Abstract:
This article examines the impact of non-pharmaceutical interventions on the initial exponential growth of the infected population and the final exponential decay of the infected population. We employ a Bayesian dynamic model to test whether there is learning, a random walk pattern, or another type of learning with evolving epidemiological data over time across 168 countries and 41,706 country-date observations. Although we show that Bayesian learning is not taking place, most policy measures appear to assert some effect. In particular, we show that economic policy variables are of importance for the main epidemiological parameters derived from the policy learning model. In an empirical second-stage application, we further investigate the underlying dynamics between the epidemiological parameters and household debt repayments, a key economic variable, in the UK. Results show no Bayesian learning, although a higher transmission rate would increase household debt repayments, while the recovery rate would have a negative impact. Therefore, suboptimal learning is taking place.
Journal: Applied Economics
Pages: 2990-3010
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203462
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203462
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# input file: RAEC_A_2326039_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mikael Rönkkö
Author-X-Name-First: Mikael
Author-X-Name-Last: Rönkkö
Author-Name: Joonas Holmi
Author-X-Name-First: Joonas
Author-X-Name-Last: Holmi
Author-Name: Mervi Niskanen
Author-X-Name-First: Mervi
Author-X-Name-Last: Niskanen
Author-Name: Markus Mättö
Author-X-Name-First: Markus
Author-X-Name-Last: Mättö
Title: The adaptive markets hypothesis: Insights into small stock market efficiency
Abstract:
In this paper, we explore whether the adaptive markets hypothesis (AMH) describes the efficiency of the Finnish stock market better than the efficient markets hypothesis (EMH) does. Building on this, we also test how small market size and market liberalization impact the efficiency of the Finnish stock market and examine the relationship between market volatility and return in this market. We conduct this study by applying the subsample analysis and the rolling window analysis to the daily returns of the OMXH25 index and by measuring the efficiency through three linear and two nonlinear predictability tests. The results of our study strongly support the AMH. They also suggest that small market size alone does not make a market less efficient; opening a market to foreign investors improves its efficiency after a delay; and the correlation between market volatility and return varies over time in the Finnish stock market, being usually negative. These findings mostly contradict the traditional investment paradigm.
Journal: Applied Economics
Pages: 3048-3062
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2024.2326039
File-URL: http://hdl.handle.net/10.1080/00036846.2024.2326039
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# input file: RAEC_A_2203460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaojie Yu
Author-X-Name-First: Xiaojie
Author-X-Name-Last: Yu
Author-Name: Duminda Kuruppuarachchi
Author-X-Name-First: Duminda
Author-X-Name-Last: Kuruppuarachchi
Author-Name: Sriyalatha Kumarasinghe
Author-X-Name-First: Sriyalatha
Author-X-Name-Last: Kumarasinghe
Title: Financial development, FDI, and CO2 emissions: does carbon pricing matter?
Abstract:
This study investigates the impact of financial development and foreign direct investment (FDI) on CO2 emissions, with a special focus on carbon pricing (emissions trading and taxing) in 57 developed and developing economies between 2000 and 2017. Using an eight-fold financial development construct for the first time, we find that financial depth in institutions negatively (positively) affects the CO2 intensity of developed (developing) economies, while financial access to institutions has a negative impact in both types of economies. Financial depth (stability) in markets negatively affects developing (developed) economies’ CO2 intensity, while financial access to markets increases (decreases) CO2 intensity in developed (developing) economies. Moreover, inward FDI stock quality (a net FDI position) increases (reduces) CO2 intensity in developing (developed) economies. Finally, we document that carbon pricing in developed economies helps reverse the positive effect of inward FDI quality on CO2 intensity, implying that a such policy helps those economies attract climate-friendly FDI. Our study reveals the implications of the reduction of CO2 emissions placing the focus on both financial development and FDI fully and together for the first time.
Journal: Applied Economics
Pages: 2959-2974
Issue: 25
Volume: 56
Year: 2024
Month: 05
X-DOI: 10.1080/00036846.2023.2203460
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2203460
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# input file: RAEC_A_2204216_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhicheng Xu
Author-X-Name-First: Zhicheng
Author-X-Name-Last: Xu
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Author-Name: Dongying Li
Author-X-Name-First: Dongying
Author-X-Name-Last: Li
Title: Chinese aid and nutrition improvement in Sub-Saharan Africa
Abstract:
The efficacy of foreign aid, especially escalating Chinese aid, has been controversial. Considering the widespread malnutrition in Sub-Saharan Africa and the substantial concerns about Chinese aid, we investigate whether and how Chinese development assistance improves the nutrition of the African recipients, particularly children and women. We match Chinese aid projects and Demographic and Health Surveys (DHS) covering 24 SSA countries during 2000–2016. We address the causality by comparing the individuals who lived near a Chinese aid project that was effective at the time of the interview to those who were not exposed to Chinese aid projects while a nearby Chinese aid project would be initiated after the interview. We measure malnutrition by hemoglobin haemoglobin and anemia anaemia which are more relevant and reliable than other indicators. Our results show that Chinese aid significantly increased hemoglobin haemoglobin and decreased the likelihood of anemia anaemia, and the effects are more pronounced among children. In contrast to the popular expectation, health aid does not significantly improve nutrition conditions, at least in the short run. Instead, other aid projects that promote earnings and job opportunities substantially reduced malnutrition among children and women. Heterogeneity analysis further shows that Chinese aid strongly improved nutrition mainly among disadvantaged residents.
Journal: Applied Economics
Pages: 3098-3116
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204216
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204216
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# input file: RAEC_A_2204217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fangyuan Shi
Author-X-Name-First: Fangyuan
Author-X-Name-Last: Shi
Author-Name: Yuhan Zheng
Author-X-Name-First: Yuhan
Author-X-Name-Last: Zheng
Author-Name: Xuan Liu
Author-X-Name-First: Xuan
Author-X-Name-Last: Liu
Title: Does internet development affect urban economic resilience? New evidence from China
Abstract:
Global macroeconomic development is faced with great uncertainty, especially the repeated impact of COVID-19, which exacerbate the challenges. This study explores the impact of Internet development on the resilience of cities. In the first place, a theoretical model is used to analyse how Internet development affects productivity and further influences urban economic resilience. Based on this, a long-differences model is established for empirical analysis. The study found that improving Internet development is an important step enhancing urban economic resilience. The results provide new perspectives and evidence for the study of urban economic resilience.
Journal: Applied Economics
Pages: 3117-3132
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204217
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204217
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# input file: RAEC_A_2204214_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nakil Sung
Author-X-Name-First: Nakil
Author-X-Name-Last: Sung
Title: COVID-19, over-the-top services, and the future of pay television: the case of South Korea
Abstract:
A drastic increase in over-the-top (OTT) subscriptions and sales after COVID-19 may threaten the future of pay television (pay TV) in South Korea. This study examines changes in the usage time of pay TV and OTT services, particularly after the COVID-19 outbreak, and assesses whether the termination of pay TV subscriptions (cord-cutting) will occur in South Korea. Empirical results indicate that the more time an individual spent on OTT services, the less time they spent on pay TV, thereby indicating a substitution relationship between pay TV and OTT services. However, the pay TV usage time of OTT service users remained at a high level and did not decrease. In addition, the results confirm that the drastic increase in OTT service usage time, particularly after the pandemic outbreak, was mainly due to the increase in the number of OTT service users, not the increase in OTT service usage time per OTT service user. These findings suggest that massive cord-cutting will not occur in Korea without drastic changes in media market conditions.
Journal: Applied Economics
Pages: 3063-3077
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204214
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204214
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# input file: RAEC_A_2205099_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fritz Wittmann
Author-X-Name-First: Fritz
Author-X-Name-Last: Wittmann
Author-Name: Michael Eder
Author-X-Name-First: Michael
Author-X-Name-Last: Eder
Author-Name: Katharina Schreck
Author-X-Name-First: Katharina
Author-X-Name-Last: Schreck
Author-Name: Florian Grassauer
Author-X-Name-First: Florian
Author-X-Name-Last: Grassauer
Title: Modelled impacts of farm-level adaptations in response to changed dietary patterns
Abstract:
Dietary change can facilitate a shift towards more sustainable agricultural practices and requires farmers to implement different farm adaptations. Here, we examine structural impacts on farms of several dietary scenarios towards changes in food demand pertaining to more regional food, more organic food and less meat in the metropolitan region of Vienna, Austria. We use a linear programming farm model underpinned by data on the intended adaptive behaviour of farmers based on a survey in the study region. The results show that for conventional farms, the intended adaptations from conventional to organic farming have higher effects on the investigated indicators (nitrogen import, gross margin, labour requirements) than adaptations concerning crop and livestock production patterns. A key finding is that, in terms of policy design, the positive effects on the investigated indicators can be achieved more easily by inciting switches towards organic farming than by inciting switches concerning crop and livestock production patterns. This would require dedicated policy measures at multiple levels, with payments specifically aimed at organic agriculture and other innovative, agro-ecological management practices. This article contributes to the modelling of regional-level food supply by showing that integrating empirical data into the farm model allows for a more targeted development of policy measures.
Journal: Applied Economics
Pages: 3166-3180
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2205099
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2205099
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# input file: RAEC_A_2204218_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jinlong Ma
Author-X-Name-First: Jinlong
Author-X-Name-Last: Ma
Author-Name: Pengfei Zhao
Author-X-Name-First: Pengfei
Author-X-Name-Last: Zhao
Author-Name: Meng Li
Author-X-Name-First: Meng
Author-X-Name-Last: Li
Author-Name: Junfang Niu
Author-X-Name-First: Junfang
Author-X-Name-Last: Niu
Title: The evolution of global soybean trade network pattern based on complex network
Abstract:
In this paper, a global soybean trade network (GSTN) is constructed based on the international trade data from 1987 to 2020. The results are as follow: (1) From 1987 to 2020, the scale of the network continued to expand, the number of trading countries continued to increase, and the trade links between countries gradually deepened. (2) The power function curve of the node degree distribution shows that the GSTN satisfies the power law distribution, which fits to be a scale-free network. (3) The global soybean export market is highly concentrated. The United States, Brazil and Argentina account for more than 80% of global soybean exports. China is the world’s largest soybean importer. (4) The control ability of core countries in the GSTN has gradually declined, which is shown from that the importance of nodes has gradually weakened, while the trade between peripheral countries is gradually increasing, showing the phenomenon of trade multilateralism. (5) South America has become the global soybean export centre, and Asia has become the global soybean import centre. The trade status of North America has declined, and the overall strength of Africa and Oceania is the weakest.
Journal: Applied Economics
Pages: 3133-3149
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204218
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204218
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# input file: RAEC_A_2204215_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tao Lin
Author-X-Name-First: Tao
Author-X-Name-Last: Lin
Author-Name: Zhao Chen
Author-X-Name-First: Zhao
Author-X-Name-Last: Chen
Title: Government cooperation, market integration, and productivity: evidence from China
Abstract:
This paper examines the causal effect of regional market integration on firm productivity through the use of 2001–2008 firm-level microdata in China. The research design relies on a regression discontinuity design based on China’s Pan-Pearl River Delta (PPRD) regional cooperation policy. The results indicate that the PPRD regional cooperation policy increases the total factor productivity (TFP) of firms by 6% on average. The positive impact of the PPRD regional cooperation policy on TFP is greater for private firms, large firms, and labour-intensive firms. Exploring the mechanism through which regional cooperation increases firm TFP, we find that the PPRD regional cooperation policy improves firms’ productivity primarily by expanding the scale of firms, promoting technological innovation, and optimizing the allocation of factors. The study findings deepen our understanding of productivity improvement from the perspective of the market environment.
Journal: Applied Economics
Pages: 3078-3097
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2204215
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2204215
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# input file: RAEC_A_2205097_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Zhi-Ting Xu
Author-X-Name-First: Zhi-Ting
Author-X-Name-Last: Xu
Title: Managerial ability and R&D investment: do CEOs’ and firms’ characteristics matter?
Abstract:
Previous studies document that investing in research and development is a key factor to keep firm survive in the long-run. This study instead focuses on the relationship between managerial role and R&D decisions. Specifically, we investigate whether more talented managers facilitate firms’ R&D investment. Using the MA-score as a proxy for managerial ability, we find that more able managers increase R&D spending. Furthermore, the results show that more talented managers decide to invest more in R&D investment depending on several conditions, such as whether firms are financially unconstrained or in non-crisis period. Other conditions include whether firms are facing lower default probability, in competitive industries, and with some CEOs’ characteristics, such as male, young age, higher granted stock option and higher salary.
Journal: Applied Economics
Pages: 3150-3165
Issue: 26
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2205097
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2205097
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# input file: RAEC_A_2205100_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Osaid Alshamleh
Author-X-Name-First: Osaid
Author-X-Name-Last: Alshamleh
Author-Name: Glenn Paul Jenkins
Author-X-Name-First: Glenn Paul
Author-X-Name-Last: Jenkins
Author-Name: Tufan Ekici
Author-X-Name-First: Tufan
Author-X-Name-Last: Ekici
Title: Excise tax incidence: the inequity of taxing obesity and beauty
Abstract:
The estimation and analysis of the distribution of the negative health impacts of certain commodities subject to excise taxes in Belize and the distribution of the burdens of the excise taxes across households of different income levels are the focus of this article. Particular attention is given to the taxation of soft drinks and cosmetics. We examine the income distribution and tax revenue impacts using the commodity data from the household expenditure survey by and the effective tax rates expressed as a percentage of the value of the final consumption of each item. As in many developing countries, taxes on alcoholic beverages and tobacco products are found to be regressive. The most regressive excise taxes are on soft drinks and cosmetics. Households across the economy pay more in excise taxes on cosmetics than they do on either alcoholic beverages or tobacco products. Relative to the level of household expenditures, the burden of the excise taxes on cosmetics is highest for households in the lowest quintile of total expenditures. The impact of soft drinks in creating obesity is likely to be much greater for high income households whose total consumption per household is twice that of low-income households.
Journal: Applied Economics
Pages: 3181-3193
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2205100
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2205100
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# input file: RAEC_A_2206108_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Marta Arroyabe
Author-X-Name-First: Marta
Author-X-Name-Last: Arroyabe
Author-Name: Katrin Hussinger
Author-X-Name-First: Katrin
Author-X-Name-Last: Hussinger
Title: Acquisition experience and the winner’s curse in corporate acquisitions
Abstract:
The winner’s curse describes the behavioural phenomenon that the winner of a bidding contest pays a price that is too high. This paper shows that experiential learning cannot prevent a winner’s curse on the market of corporate control as acquiring firms with acquisition experience still pay a higher price for the target in a bidding contest. Acquisition experience, however, is related to a superior post-acquisition performance of the winning firm after acquisitions associated with a bidding contest.
Journal: Applied Economics
Pages: 3247-3261
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206108
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206108
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Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3247-3261
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# input file: RAEC_A_2205101_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Na Sun
Author-X-Name-First: Na
Author-X-Name-Last: Sun
Author-Name: Yan Sun
Author-X-Name-First: Yan
Author-X-Name-Last: Sun
Author-Name: Xiaojuan Shen
Author-X-Name-First: Xiaojuan
Author-X-Name-Last: Shen
Author-Name: Shaorong Sun
Author-X-Name-First: Shaorong
Author-X-Name-Last: Sun
Title: What affects the risks of fintech lending enterprises?
Abstract:
Five main risk factors of fintech lending enterprises are empirically analysed by using the duration analysis model. The main findings are: Technology does not cause a significant increase in enterprise risk, the main reason is that although technology brings new types of risk, namely, technical risk, but it eliminates the human errors and moral hazards in a certain extent. There is debate on the role of regulatory policy on corporate risk, ‘market failure theory’ and ‘regulatory failure theory’, the empirical results show that the institutionalization of regulatory is more conducive to reducing risk than the frequently issuing ‘new regulatory policies’. As for the debate about whether large or small enterprises carry greater risks, the empirical evidence shows that the failure risks of large enterprises are only 79% of the risks of small enterprise. Another important finding is that the risks of listed companies or venture capital-controlled enterprises are far less than that of private enterprises, which suggests that the institution is very important to reduce risk.
Journal: Applied Economics
Pages: 3194-3211
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2205101
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2205101
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# input file: RAEC_A_2206109_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zeeshan Khan
Author-X-Name-First: Zeeshan
Author-X-Name-Last: Khan
Author-Name: Ramez Abubakr Badeeb
Author-X-Name-First: Ramez Abubakr
Author-X-Name-Last: Badeeb
Author-Name: Changyong Zhang
Author-X-Name-First: Changyong
Author-X-Name-Last: Zhang
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Title: Financial inclusion and energy efficiency: role of green innovation and human capital for Malaysia
Abstract:
One of the top priorities of most countries around the world is sustainable development, to achieve which financial inclusion is identified as one of the key elements. Thus, unlike previous studies, the current study aims to channel the impact of financial inclusion on energy efficiency by constructing a parametric-based index that covers availability, accessibility, and usage of the former. The index provides an overall picture of financial services in all the three covered aspects. The analysis based on novel econometric time-series approaches, the method of moment quantile regression and the robust least square approach, shows that financial inclusion increases energy efficiency. The impact is overall positive for each quantile, i.e. 25th–90th. The impact of green innovation, human capital, and political risk is also supportive for energy efficiency. However, the impact of political risk improvement exhibits negative in the initial stages and turns positive later. In terms of policy implications, broadening financial inclusion base with the promotion of green innovation and human capital is important to achieve higher energy efficiency. In the meantime, improvement in the political risk profile should also be considered for a stable financial system to pave the way for increasing energy efficiency.
Journal: Applied Economics
Pages: 3262-3277
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206109
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206109
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Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3262-3277
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# input file: RAEC_A_2206110_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hung-Yi Huang
Author-X-Name-First: Hung-Yi
Author-X-Name-Last: Huang
Author-Name: Yun-Chi Lee
Author-X-Name-First: Yun-Chi
Author-X-Name-Last: Lee
Title: Modern pandemic crises and R&D investment
Abstract:
This study investigates the impact of crises caused by pandemics on firms’ R&D investments. We explore these associations by utilizing a comprehensive cross-country sample of 261,959 firm-year observations collected from 39 countries during five modern health crises (SARS in 2003, H1N1 in 2009, MERS in 2012, Ebola in 2012, and Zika in 2016). The results indicate that pandemics have a positive and significant impact on R&D investment. Furthermore, we show that private firms in civil-law countries were more likely to adopt conservative financial policies than those in common-law countries. We conclude that the difference between the legal origins of private firms influences the impact on R&D investment. Moreover, it promotes conservative policies to reduce private firms’ R&D investment in countries with civil law.
Journal: Applied Economics
Pages: 3278-3291
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206110
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206110
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Handle: RePEc:taf:applec:v:56:y:2024:i:27:p:3278-3291
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# input file: RAEC_A_2206107_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Qiang Cao
Author-X-Name-First: Qiang
Author-X-Name-Last: Cao
Author-Name: Jing Nie
Author-X-Name-First: Jing
Author-X-Name-Last: Nie
Author-Name: Wenmei Yu
Author-X-Name-First: Wenmei
Author-X-Name-Last: Yu
Title: Time-varying effects of structural fossil energy price shocks and economic policy uncertainty on new energy stock market: new evidence from China
Abstract:
We focus on the Chinese new energy stock market and explore the impacts of structural fossil energy price shocks and economic policy uncertainty (EPU). To this end, we synthesize the prices of three fossil energy sources, decompose the dynamics of fossil energy prices into energy supply shocks (SS), demand shocks (DS) and risk shocks (RS), and run a TVP-SVAR-SV model. Our findings show that SS significantly influence the new energy stock prices (NE) in that DS have a positive short-term impact for most of the sample periods while the mid- and long-term impacts of RS on NE are negative and larger than those of both SS and DS. We also find that in all three categories of shocks, EPU is the most important predictor negatively related to NE, indicating that a stable policy environment is essential to equity financing in the new energy market. Besides, different categories of EPU have varied impacts on NE in that exchange rate policy uncertainty (ERPU) has the most detrimental effect while the impact of trade policy uncertainty (TPU) shows a positive influence. Finally, we discuss the implications of these findings for both market regulators and investors participating in transactions of new energy stock portfolios.
Journal: Applied Economics
Pages: 3232-3246
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206107
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206107
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# input file: RAEC_A_2206104_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Dongyu Wang
Author-X-Name-First: Dongyu
Author-X-Name-Last: Wang
Author-Name: Yong Qi
Author-X-Name-First: Yong
Author-X-Name-Last: Qi
Author-Name: Song Wang
Author-X-Name-First: Song
Author-X-Name-Last: Wang
Title: Can China’s belt and road investments improve the comprehensive international competitiveness of host countries?
Abstract:
Since China proposed the Belt and Road Initiative in 2013, the effect of driving economic development in host countries has intensified. This study examines the effect and spatial mechanisms of China’s Belt and Road investment on the comprehensive international competitiveness of 48 countries along the Belt and Road route in three dimensions: the basic requirements, efficiency enhancers, and economic freedom. The results revealed significant contributions and spatial spillover effects, whose spatial mechanisms can be implemented by upgrading the level of infrastructure development, optimizing the market environment, and enhancing the innovation capability. Therefore, it can be said that China’s Belt and Road investment can promote the development of the host country’s comprehensive international competitiveness from multiple perspectives. Moreover, research indicates that the infrastructure distance between the host country and China provides a broad space for Chinese investment, under whose effect Chinese investment contributes significantly and exhibits a positive spatial spillover effect, while market distance and innovation distance have the opposite effects.
Journal: Applied Economics
Pages: 3212-3231
Issue: 27
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206104
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206104
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# input file: RAEC_A_2206112_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Siyi Peng
Author-X-Name-First: Siyi
Author-X-Name-Last: Peng
Author-Name: Zijie Fan
Author-X-Name-First: Zijie
Author-X-Name-Last: Fan
Author-Name: Wenjie Hu
Author-X-Name-First: Wenjie
Author-X-Name-Last: Hu
Author-Name: Jiaqi Yuan
Author-X-Name-First: Jiaqi
Author-X-Name-Last: Yuan
Title: RCEP, global value chains and welfare effects: a quantitative analysis based on the distinction between intermediates and final goods
Abstract:
We quantify the trade and welfare effects of RCEP. Using a quantitative multi-country and multi-sector trade model that distinguishes key characteristics between intermediates and final goods, we illustrate the heterogeneous impacts of RCEP on trade and welfare. RCEP has trade creation effects within members but has trade diversion effects for non-members. There are substantial welfare gains within RCEP, but the decomposition results indicate that the sources of welfare gains differ, with China and ASEAN countries mainly originating from growth in the volume of trade, but at the cost of the deterioration in terms of trade. Trade liberalization in service also contributes to welfare gains, mainly from intermediates trade. India’s accession to RCEP improves the welfare of itself and its members, while its terms of trade deteriorate. We also find that with distinctions between intermediates and final goods, the heterogeneous effects of the two can be captured. Moreover, our model predicts more significant welfare gains than a model without input-output networks and sectoral linkages.
Journal: Applied Economics
Pages: 3334-3348
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206112
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206112
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Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3334-3348
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# input file: RAEC_A_2206623_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shengming Hu
Author-X-Name-First: Shengming
Author-X-Name-Last: Hu
Author-Name: Kai Lin
Author-X-Name-First: Kai
Author-X-Name-Last: Lin
Author-Name: Bei Liu
Author-X-Name-First: Bei
Author-X-Name-Last: Liu
Author-Name: Hui Wang
Author-X-Name-First: Hui
Author-X-Name-Last: Wang
Title: Does robotization improve the skill structure? The role of job displacement and structural transformation
Abstract:
The literature generally focuses on the impact of robots or artificial intelligence on the employment and wages, but ignores the effect of robotization on the skill structure and its underlying mechanisms and lacks empirical evidence from developing countries. We theoretically develop a task model by introducing the skill structure and empirically investigate the effect of robotization on the skill structure based on Chinese provincial panel data from 2006 to 2018. Results show that: (1) the development of robotization in China is conducive to improving the skill structure, and the baseline conclusion still holds even though adopting multiple indexes of skill structure and controlling the endogeneity bias. (2) Robotization generates not only job displacement effect by displacing unskilled workers with robots but also structural transformation effect by increasing the proportion of technology-intensive industries, which can improve the skill structure. (3) In coastal provinces with strong Internet foundation, information transmission capacity and labour protection intensity, high labour cost and ageing rate, robotization plays a stronger role in improving the skill structure. Moreover, robotization can induce the employment polarization. These conclusions can help avoid technical unemployment and promote the upgrading of the skill structure in China.
Journal: Applied Economics
Pages: 3415-3430
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206623
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206623
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# input file: RAEC_A_2206619_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hao Shen
Author-X-Name-First: Hao
Author-X-Name-Last: Shen
Author-Name: Jiang Xin
Author-X-Name-First: Jiang
Author-X-Name-Last: Xin
Author-Name: Yu Gao
Author-X-Name-First: Yu
Author-X-Name-Last: Gao
Title: Insights into guanxi and firm performance in China: an integrated lens of culture and guanxi
Abstract:
Chinese guanxi may contribute to the explanation of the rapid growth of Chinese firms. This study uses drinking culture, regarded as a typical feature of guanxi-oriented culture, and political ties, regarded as indicating the cultural embeddedness of guanxi, to empirically examine the effects of cross-level interaction between guanxi-oriented regional culture and culturally embedded managers’ guanxi on firm performance in China. Based on the data of A-share listed companies from 2016 to 2019, multiple linear regression analysis is used to test hypotheses. The results show that guanxi improves firm financial performance but damage technological innovation. The context-specific research offers novel insights and contextualized knowledge to enrich and extend the understanding of how guanxi affects firm growth and contribute to the knowledge of Chinese social philosophy.
Journal: Applied Economics
Pages: 3401-3414
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206619
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206619
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# input file: RAEC_A_2206617_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jorge R. Gonzales
Author-X-Name-First: Jorge R.
Author-X-Name-Last: Gonzales
Author-Name: Luis Varona
Author-X-Name-First: Luis
Author-X-Name-Last: Varona
Title: Food import demand in Peru, 1980-2021
Abstract:
This study analyses and explains food imports from Peru: 1980–2021. The econometric method uses Autoregressive Distributed Lagged (ARDL) models. The result of the stationarity property of I(0) and I(1) of the variables suggests the use of the ARDL model. The Granger causality result shows that variables explain food imports. The bound test cointegration showed a long-run cointegration to exist between foot imports and income, the real exchange rate, relative prices, price of fertilizers, and institution. The short-run analysis shows positive effects of relative prices and the real exchange rate towards food imports. And in the long-run analysis, we have found a positive relationship between food imports and economic growth. Also, there is a negative relationship between food imports and the growth of the real exchange rate, the price of fertilizers, and the opening of the Free Trade Agreement. Policies for self-sufficiency are recommended through investment policies in human capital for research in fertilizers and alternative organic manures; in financial capital for access to credit for small producers; in social capital, with support for sectors with lower productivity in rural areas to reduce dependence on the international market and the growing demand for food imports that puts food security at risk.
Journal: Applied Economics
Pages: 3371-3384
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206617
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206617
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# input file: RAEC_A_2206618_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Don U.A. Galagedera
Author-X-Name-First: Don U.A.
Author-X-Name-Last: Galagedera
Title: Planning for potential increases in disbursements and risk of managed funds conditional on desired short-term performance levels
Abstract:
As increasing disbursements (such as costs and fees) and risk (such as portfolio risk and leverage risk) may affect managed fund performance, analysts go beyond risk-adjusted return measures for performance appraisal. A methodology that assesses performance in a multidimensional framework is data envelopment analysis (DEA). A variant of DEA is inverse DEA. In this paper, inverse DEA is applied to determine output (investment income and benefit payments) targets for a given fund to perform at a desired efficiency level when increase in disbursements and risk at known levels is envisaged. An output-oriented inverse DEA model assuming variable returns to scale is formulated with theoretical underpinning. The proposed modelling framework ensures that, when an input augmented fund with estimated output targets is included in the observed fund set, the frontier of best performance established with the observed fund set does not change. The inverse DEA model is applied to a sample of Australian superannuation funds to demonstrate how a given fund may obtain pathways to improve its performance under different input-augmentation scenarios. As different pathways suggest feasible output targets, fund managers may find them valuable in forward planning.
Journal: Applied Economics
Pages: 3385-3400
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206618
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206618
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Handle: RePEc:taf:applec:v:56:y:2024:i:28:p:3385-3400
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# input file: RAEC_A_2206616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Anirudh Shingal
Author-X-Name-First: Anirudh
Author-X-Name-Last: Shingal
Title: The COVID-19 shock and services trade decline: potential for digitalization matters
Abstract:
Global services trade declined by 20% during 2020 with significant heterogeneity across countries, geographical regions and sectors. We present stylized facts and provide hypotheses and empirical analysis seeking to explain this heterogeneity. The decline is found to be correlated with COVID-19 case and mortality rates; stringency of imposed lockdowns; the decline in merchandise trade; and with different ways of transacting services trade. The latter depends on the sectoral composition of services trade across countries, which in turn emanates from more fundamental determinants of comparative advantage in services, generating testable hypotheses to explain the observed heterogeneity in services trade decline. Focusing on attributes of digitalization and the role of value-chains, we find that human-capital-intensive countries with favourable digital-trade policies and greater ability to leverage ICT infrastructure were associated with relatively smaller declines. Moreover, the expected role of GVC-integration in accentuating the services trade decline finds little support in empirical results across sectors providing evidence instead for the GVC-resilience narrative.
Journal: Applied Economics
Pages: 3349-3370
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206616
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206616
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# input file: RAEC_A_2206111_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Firat Demir
Author-X-Name-First: Firat
Author-X-Name-Last: Demir
Author-Name: Yi Duan
Author-X-Name-First: Yi
Author-X-Name-Last: Duan
Title: Target at the right level: aid, spillovers, and growth in sub-saharan Africa
Abstract:
Previous aid effectiveness literature is subject to aggregation bias and does not discuss aid spillover effects. Using spatial analysis and data from geocoded World Bank aid projects, this article investigates international aid effectiveness and aid spillovers at the sub-national level in 3,764 second-order administrative divisions (ADM2) in 48 countries in Sub-Saharan Africa over the period of 1995–2014. The empirical analysis is based on an instrumental variable approach and relies on nightlights data as a proxy for economic activity. The empirical results reveal three previously undocumented findings on aid effectiveness. First, we find that aid at the local level (ADM2) promotes economic growth at an economically and statistically significant level. Second, we uncover significantly positive aid spillovers across adjacent localities (ADM2). Third, aid flows at more aggregate levels (ADM1 and country level) have the opposite effect and reduce economic growth. The net effect of all aid variables is near zero and is within the range of coefficient estimates reported at the country level by previous papers. These results suggest that targeted aid projects can be effective in promoting economic growth.
Journal: Applied Economics
Pages: 3293-3333
Issue: 28
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206111
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206111
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# input file: RAEC_A_2206626_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Maryam Dilmaghani
Author-X-Name-First: Maryam
Author-X-Name-Last: Dilmaghani
Author-Name: Jason Dean
Author-X-Name-First: Jason
Author-X-Name-Last: Dean
Title: Sexual orientation and intra-household specialization before and after the legal recognition of same-sex marriage in Canada
Abstract:
Using the Canadians Censuses of 2001, 2006, 2016, and the National Household Survey of 2011, this article compares intra-household specialization patterns of married and cohabiting couples by gender composition of households. Household specialization is operationalized in several ways. The first set of measures captures the earnings differentials between spouses, while the second set of measures relies on labour supply. In line with previous studies, we often find a lower level of intra-household specialization for both male-male and female-female couples, compared with their heterosexual counterparts. However, the difference with heterosexuals is much larger for female-female couples. When the most recent dataset is split by income level, it appears that the specialization gaps are largely driven by the more affluent households. We also find considerable heterogeneity in the patterns when the sample is split by generational status.
Journal: Applied Economics
Pages: 3460-3484
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206626
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206626
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# input file: RAEC_A_2206631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Wen Yue
Author-X-Name-First: Wen
Author-X-Name-Last: Yue
Title: Human capital and domestic value added in exports: evidence from China
Abstract:
Based on the data of Chinese manufacturing firms from 2000 to 2006, this study takes the university enrolment expansion policy implemented by the Chinese government in 1999 as a quasi-natural experiment, and uses the difference-in-difference (DID) method to identify the effect of human capital expansion on the ratio of domestic value added in exports to gross exports (DVAR) of firms. Results show that human capital expansion significantly improves the firms’ DVAR through the ‘intermediate product substitution’ channel (promoting firms to use more domestic intermediate inputs to replace imported intermediate inputs in production) and the ‘markup’ channel (promoting the increase of firms’ markup). At the same time, significant heterogeneity exists in the effects of human capital expansion on the DVAR of different types of firms. These results provide new empirical evidence from the perspective of firm DVAR for further understanding of the microeconomic effects of human capital.
Journal: Applied Economics
Pages: 3533-3547
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206631
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206631
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# input file: RAEC_A_2206624_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yi Li
Author-X-Name-First: Yi
Author-X-Name-Last: Li
Author-Name: Fangyu Ye
Author-X-Name-First: Fangyu
Author-X-Name-Last: Ye
Author-Name: Huiming Zhu
Author-X-Name-First: Huiming
Author-X-Name-Last: Zhu
Title: Impact of interaction between corporate environmental responsibility and corporate financial performance: the moderating effects of environmental regulation and internal control
Abstract:
This paper investigates the interaction between corporate environmental responsibility (CER) and corporate financial performance (CFP). Moreover, the moderating effect of environmental regulation and internal control on this relationship is also examined. Based on the panel data of 790 China’s A-shares listed companies of heavily polluting industries from 2006 to 2019, the results show that while CFP has a significant positive impact on CER, the positive impact of CER on CFP is not significant. Further analysis reveals that environmental regulation plays a positive moderating role in the impact of CFP on CER, and the positive impact of CER on CFP become significant in higher internal control quality firms. The results indicate that good environmental performance is a consequence of earlier good financial performance, and the costs of implementing sustainable and responsible projects are not always offset by revenues sufficient to generate increases in profit. Our findings suggest that firms should improve the quality of internal control and government should increase environmental supervision to achieve a virtuous circle connecting CER and CFP.
Journal: Applied Economics
Pages: 3431-3444
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206624
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206624
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# input file: RAEC_A_2206630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Lingduo Jiang
Author-X-Name-First: Lingduo
Author-X-Name-Last: Jiang
Author-Name: Shuangshuang Liu
Author-X-Name-First: Shuangshuang
Author-X-Name-Last: Liu
Author-Name: Guofeng Zhang
Author-X-Name-First: Guofeng
Author-X-Name-Last: Zhang
Title: The impact of Asian Infrastructure Investment Bank on OFDI: evidence from China
Abstract:
This study empirically explores the impact of the Asian Infrastructure Investment Bank (AIIB) on outward foreign direct investment (OFDI). Based on data of Chinese cross-border investments during 2007–2020 obtained from the Bureau van Dijk (BvD) Zephyr database, we use a multi-period difference-in-differences estimation strategy to identify the construction of the AIIB throughout the period of 2014–2020. The results reveal that the establishment of the AIIB increases the possibility of China’s OFDI by an average of 15.45%; furthermore, the number of China’s OFDI projects arises by 20.40% and the amount of China’s OFDI flows boosts by 23.04% on average. Moreover, the heterogeneity analyses show that the AIIB prompts more OFDI flows to countries with higher economic developments, especially those technology- and export-oriented ones.
Journal: Applied Economics
Pages: 3517-3532
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206630
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206630
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# input file: RAEC_A_2206627_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Robert J. Brent
Author-X-Name-First: Robert J.
Author-X-Name-Last: Brent
Title: Use of distributional weights in cost–benefit analysis revisited
Abstract:
It is nearly 40 years since an earlier survey on the use of distributional weights in Cost-Benefitcost–benefit analysis was first published. Since then, a number of significant contributions have been made in the literature. It is therefore timely to revisit the issue by focusing on the key reasons why distributional weights are so necessary. We present a new justification for using unequal income distributional weights in CBA, and and reaffirm a completely neglected reason for adopting distribution weights. We derive the weights from a formulation of the SWF. We specify the minimum value judgmentsjudgements for the SWF that everyone can agree on who accepts the fundamentals of welfare economics. As many CBA practitioners have ignored using distribution weights, inadequate attention has been given to how they can be estimated. The final objective of this paper is to highlight the main methods for estimating these weights, and and to present applications of these methods.
Journal: Applied Economics
Pages: 3485-3498
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206627
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206627
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# input file: RAEC_A_2206629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaodong Chen
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Chen
Author-Name: Haoming Mi
Author-X-Name-First: Haoming
Author-X-Name-Last: Mi
Author-Name: Peng Zhou
Author-X-Name-First: Peng
Author-X-Name-Last: Zhou
Title: Whether to decentralize and how to decentralize? The optimal fiscal federalism in an endogenous growth model
Abstract:
We develop an endogenous growth model with public consumption and infrastructure services provided by two-tier governments. Growth performance and welfare implication are compared under the centralized and decentralized fiscal federal systems. In general, there is a trade-off between welfare and growth due to conflicts of interest and asymmetric information between central and local governments. By numerical simulations, we show that the optimal fiscal federalism should impose restrictions on expenditure−GDP ratio, rather than on expenditure−budget ratio or central−local expenditure ratio, because expenditure−GDP ratio can align the incentives of the two-tier governments. Furthermore, it is suggested that decentralized fiscal systems are generally superior to the centralized system because the efficiency loss overweighs the agency cost. The model is then applied to analyzing different growth experiences in the West and China by institutional and cultural differences.
Journal: Applied Economics
Pages: 3499-3516
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206629
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206629
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# input file: RAEC_A_2206625_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Kaiming Cheng
Author-X-Name-First: Kaiming
Author-X-Name-Last: Cheng
Author-Name: Shucheng Liu
Author-X-Name-First: Shucheng
Author-X-Name-Last: Liu
Title: Does urbanization promote the urban–rural equalization of basic public services? Evidence from prefectural cities in China
Abstract:
The question of how urbanization affects the urban–rural equalization of basic public services (BPS) remains unexplored, although BPS equalization is an important means of achieving common prosperity. Based on the BPS supply and demand perspective, we examine the path mechanisms through which urbanization affects urban–rural BPS equalization. Based on panel data from Chinese prefectural cities from 2003 to 2020, a TOPSIS model, combined CRITIC-entropy weights and an information entropy function, are used to measure the level of urban–rural BPS equalization. Considering the spatial spillover effect of urbanization, a dynamic spatial Durbin model is constructed to empirically examine the impact of urbanization. The study found that, overall, the direct and indirect effects of urbanization on urban–rural BPS equalization are significantly positive, and urbanization is conducive to urban–rural BPS equalization improvement in cities and surrounding areas. The effect of urbanization on urban–rural BPS equalization significantly varies between different regions. The study concludes that the process of people-centred urbanization should be accelerated to optimize the spatial layout of BPS, promote high-quality economic development and achieve common prosperity.
Journal: Applied Economics
Pages: 3445-3459
Issue: 29
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206625
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206625
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# input file: RAEC_A_2206634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Simona Bigerna
Author-X-Name-First: Simona
Author-X-Name-Last: Bigerna
Author-Name: Maria Chiara D’Errico
Author-X-Name-First: Maria Chiara
Author-X-Name-Last: D’Errico
Author-Name: Silvia Micheli
Author-X-Name-First: Silvia
Author-X-Name-Last: Micheli
Author-Name: Paolo Polinori
Author-X-Name-First: Paolo
Author-X-Name-Last: Polinori
Title: Environmental-economic efficiency for carbon neutrality: the role of eco-innovation, taxation, and globalization in OECD countries
Abstract:
The aim of this paper is to examine the relationship between three determinants – environmental patents, environmental taxation and trade globalization – and the environmental-economic efficiency of 29 OECD countries between 2005 and 2020. Using the Global Malmquist-Luenberger index, this research computes the environmental productivity growth and its main drivers – the catch-up and the frontier shift terms. Besides, dynamic panel linear models are applied to investigate how the three institutional variables affect the dynamics of the computed efficiency indices. Results are as follows: firstly, eco-innovation is the most relevant factor in boosting the environmental productivity growth, pushing forward the technological frontier, and spurring the catch-up term. Secondly, environmental taxation is an ineffective policy instrument in promoting the sustainable growth and technological frontier advancements, having positive impacts only on the catch-up term. Thirdly, trade globalization reveals to hinder the sustainable growth and its two main drivers.
Journal: Applied Economics
Pages: 3568-3581
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206634
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206634
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# input file: RAEC_A_2207812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Antonella Biscione
Author-X-Name-First: Antonella
Author-X-Name-Last: Biscione
Author-Name: Chiara Burlina
Author-X-Name-First: Chiara
Author-X-Name-Last: Burlina
Author-Name: Annunziata de Felice
Author-X-Name-First: Annunziata
Author-X-Name-Last: de Felice
Title: Knowledge flows and innovation: a pseudo-panel approach
Abstract:
This study investigates whether the effect of vertical and horizontal knowledge sources affect technological innovation for a sample of firms in 10 European countries. The empirical analysis is based on a unique dataset extracted from the Community Innovation Survey for the period 2002 to 2012. Results, using a pseudo-panel approach at country-industry level, reveal that vertical knowledge from suppliers strongly affects both product and process innovation, while knowledge flows from clients influence in particular product innovation. Finally, horizontal knowledge flows from competitors appear to have an effect on process innovation. These findings are validated with an instrumental variable approach using Lewbel’s technique to internally generate reliable instruments, when external ones are not suitable. Overall, results seem to suggest the need for ad-hoc policies to foster knowledge flows among firms in different phases of the production process to boost their innovative capacity both for products and processes.
Journal: Applied Economics
Pages: 3636-3651
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2207812
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2207812
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# input file: RAEC_A_2207813_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaozhen Pan
Author-X-Name-First: Xiaozhen
Author-X-Name-Last: Pan
Author-Name: Gengxi Xu
Author-X-Name-First: Gengxi
Author-X-Name-Last: Xu
Title: The impact of managers’ IT experience on the enterprises’ digital transformation: Empirical evidence from China
Abstract:
Digital transformation has become a primary strategic choice of enterprises in recent years. We use Chinese A-share listed companies in Shanghai and Shenzhen as samples, use text analysis to describe the degree of enterprises’ digital transformation, and empirically test the impact of managers’ information technology (IT) experience on the enterprises’ digital transformation. The research results show that the managers’ IT experience can significantly promote the enterprises’ digital transformation and has strong robustness. Heterogeneity analysis shows that only when IT managers have information technology-related work experience, greater power, and stronger salary incentives can their information technology experience effectively promote enterprises’ digital transformation. Further research shows that the IT experience of directors, supervisors, and executives all contributes to the enterprises’ digital transformation. This study guides human resource management in enterprises’ digital transformation in developing countries. Enterprises should focus on diversifying senior management team backgrounds and strengthen the internal training and external introduction of IT management talents.
Journal: Applied Economics
Pages: 3652-3668
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2207813
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2207813
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# input file: RAEC_A_2206636_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rupamanjari Sinha Ray
Author-X-Name-First: Rupamanjari
Author-X-Name-Last: Sinha Ray
Title: Can environmental SDGs moderate trade and environment nexus? A South Asian context based on panel ARDL approach
Abstract:
The study renews the debate over trade openness and environmental quality by empirically examining the moderating role of environmental SDGs, viz., affordable and clean energy (SDG 7) and climate action (SDG 13), in South Asia. Static panel regression analysis is undertaken, followed by a panel ARDL approach and the Engle-Granger causality test. All eight South Asian countries and a study period of 2002–2019 constitute the panel data set for the present analysis. The result suggests that while SDG 7 is a game changer in doing away with the pollution haven, the moderating impacts of SDG 7 and SDG 13 further reinforce the EKC hypothesis in the region. Both SDG 7 and SDG 13 exhibit long-run moderating effects on the pollution haven, and SDG 13 is observed to have a short-run moderating causal impact. The novel introduction of environmental SDGs to resolve the classical trade and environment debate has policy implications for simultaneous advancements towards SDG 7 and SDG 13. The study is valuable from the perspective of international cooperation, particularly when South Asian economies are not beyond the gloom of global permacrisis.
Journal: Applied Economics
Pages: 3600-3620
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206636
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206636
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# input file: RAEC_A_2206633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yanjiang Zhang
Author-X-Name-First: Yanjiang
Author-X-Name-Last: Zhang
Author-Name: Xiangjun Wang
Author-X-Name-First: Xiangjun
Author-X-Name-Last: Wang
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Author-Name: Jiayang Song
Author-X-Name-First: Jiayang
Author-X-Name-Last: Song
Title: Rumour of administrative division adjustment and regional housing markets: housing listings, prices and speculation
Abstract:
We trace the rumour that two undeveloped regions were to be administratively merged into Beijing, which is the capital of China. Applying a difference-in-difference approach, we find that housing listing prices in the two undeveloped regions declined by 25.1% after local governments clarified the rumour. Our results are robust after considering possible confounders such as contemporary housing market policies, business cycles and migrations. The price reduction caused by the rumour collapse averages to 347–396 thousand yuan, a comparable number to the value of ‘Hukou’ in Beijing. Finally, we show that herding and speculation accelerate the price bust after the rumour collapses.
Journal: Applied Economics
Pages: 3549-3567
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206633
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206633
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# input file: RAEC_A_2206992_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Malick Kebe
Author-X-Name-First: Malick
Author-X-Name-Last: Kebe
Author-Name: Saralees Nadarajah
Author-X-Name-First: Saralees
Author-X-Name-Last: Nadarajah
Title: Change point analysis of the effects of the Russo-Ukrainian war on wheat flour prices in selected African countries
Abstract:
Using change point analysis, we have examined price changes in wheat flour prices as provided by the Food and Agricultural Organization Tool in Angola, Mauritania, Egypt, Namibia, and South Africa. Change point analysis confirms that prices had been on an upward trajectory even before the war in Eastern Europe. The war caused domestic prices to remain high. African countries must find a way to be better prepared for the next supply shock of this variety and magnitude.
Journal: Applied Economics
Pages: 3621-3635
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206992
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206992
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# input file: RAEC_A_2206635_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yong Li
Author-X-Name-First: Yong
Author-X-Name-Last: Li
Author-Name: Tong Niu
Author-X-Name-First: Tong
Author-X-Name-Last: Niu
Author-Name: Xingyi Wang
Author-X-Name-First: Xingyi
Author-X-Name-Last: Wang
Title: Exploration of industrial risk contagion characteristics and mechanism under geopolitical events: evidence from China
Abstract:
Based on the TVP-VAR-DY and TVP-VAR-BK models, this article examines the characteristics and mechanisms of systemic risk contagion in the Chinese industries under geopolitical events by selecting data spans from 1 January 2010 to 31 August 2022. First, dynamic analysis of full-sample risk contagion shows that there is a significant climb in total risk during geopolitical events. Then the static analysis of risk contagion in the full sample specifically shows the correlation between risk contagion and industry chain between the financial and real sectors. Besides, the sub-sample analysis illustrates that during geopolitical events such as the Sino-US Trade War, the COVID-19 Pandemic and the Russia-Ukraine Conflict, Chinese industrial stock indexes show short-term risk spillovers from key industries related to geopolitical events, and gradually spread along the industrial chain in the long run compared to the Chinese ‘Stock Market Crash’. Through further mechanistic tests, we find that the irrational behaviour of investors in the market exacerbates short-term risk contagion, while the financial distress of real firms due to financing constraints exacerbates long-term risk contagion. In addition, geopolitical risk, economic uncertainty, and policy uncertainty as macro variables also have an impact on the short-run and long-run risk contagion.
Journal: Applied Economics
Pages: 3582-3599
Issue: 30
Volume: 56
Year: 2024
Month: 06
X-DOI: 10.1080/00036846.2023.2206635
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2206635
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Handle: RePEc:taf:applec:v:56:y:2024:i:30:p:3582-3599
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# input file: RAEC_A_2208335_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Astrid Loretta Ayala
Author-X-Name-First: Astrid Loretta
Author-X-Name-Last: Ayala
Author-Name: Szabolcs Blazsek
Author-X-Name-First: Szabolcs
Author-X-Name-Last: Blazsek
Author-Name: Adrian Licht
Author-X-Name-First: Adrian
Author-X-Name-Last: Licht
Title: Score function scaling for QAR plus Beta-t-EGARCH: an empirical application to the S&P 500
Abstract:
In the literature on score-driven models, alternative choices of the scaling parameters of the conditional score terms are used, but the optimal choice of those parameters is an open question. Although there are score-driven models for which the choice of the scaling parameters is irrelevant, there are important score-driven models for which score-driven scale filters appear in the information matrix, and the choice of the scaling parameters is relevant. We focus on the quasi-autoregressive (QAR) plus Beta-$t$t-EGARCH (exponential generalized autoregressive conditional heteroscedasticity) model, by using data on the Vanguard Standard & Poor’s 500 (S&P 500) exchange-traded fund (VOO) and all available S&P 500 stocks for the period of 2013–2023. For QAR plus Beta-$t$t-EGARCH, each updating term is the product of a scaling parameter and a conditional score, and we use specific alternative scaling parameters from the literature. For different scaling parameters in the scale filter (volatility), alternative location and scale filters coincide. For different scaling parameters in the location filter (expected return), alternative location and scale filters differ significantly. For the statistical and volatility forecasting performances of VOO and most of the S&P 500 stocks, the best-performing scaling parameter for the score-driven location is the conditional inverse information matrix.
Journal: Applied Economics
Pages: 3684-3697
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208335
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208335
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Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3684-3697
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# input file: RAEC_A_2208843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Vikkram Singh
Author-X-Name-First: Vikkram
Author-X-Name-Last: Singh
Author-Name: Eduardo Dacillo Roca
Author-X-Name-First: Eduardo Dacillo
Author-X-Name-Last: Roca
Title: Do birds of the same feather flock together? The cultural geography of global housing price interaction
Abstract:
The literature documents that cultural factors affect housing or real estate markets and their interactions. Given this, we map global housing markets into different cultural blocs, and study the dynamics of price interaction among them. We investigate the extent and manner of price interaction within and between cultural blocs using a battery of econometric tests and network analyses. We confirm that housing markets within the same blocs are highly correlated, cointegrated and react to each other more quickly than those among different blocs. Our results provide a new perspective on the important role of culture in the transmission of linkages among housing markets globally and have vital implications for the global coordination of policies to stabilize housing markets.
Journal: Applied Economics
Pages: 3760-3777
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208843
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208843
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# input file: RAEC_A_2208842_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zibin Zhang
Author-X-Name-First: Zibin
Author-X-Name-Last: Zhang
Author-Name: Xu Ou
Author-X-Name-First: Xu
Author-X-Name-Last: Ou
Author-Name: Wenxin Cai
Author-X-Name-First: Wenxin
Author-X-Name-Last: Cai
Title: How do firms respond to the tighter COD discharge standards? Evidence from the pulp and paper industry in China
Abstract:
The chemical oxygen demand (COD) emissions from the pulp and paper industry in China have declined continuously since the tighter COD discharge standards were implemented in 2008. Using firm-level data from 2003 to 2013, we investigate how China’s pulp and paper firms would respond to the tighter COD discharge standards with a difference-in-differences design. We find that the tighter COD discharge standards have significant causal effects to induce the pulp and paper firms to reduce their COD emissions primarily through adopting cleaner production. However, the effectiveness of the tighter COD discharge standards depends on monitoring and enforcement activities as well as other regulations accompanying with the tighter COD discharge standards, all of which have become strengthened since China’s 11th Five-Year-Plan (FYP, 2006–2010). While strengthened environmental regulations since the 11th FYP are from the top leadership of the Chinese government in order to deal with the increasing environmental degradation, the underlying driving force of the strengthened environmental regulations is from the household demand for better environmental quality as income increases. This study enriches literature not only on firms’ responses to environmental regulations in developing countries but also on environmental regulations and technology adoption as well as environmental enforcement and compliance.
Journal: Applied Economics
Pages: 3741-3759
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208842
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208842
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Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3741-3759
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# input file: RAEC_A_2208338_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Qin Zhu
Author-X-Name-First: Qin
Author-X-Name-Last: Zhu
Author-Name: Xiangxiang Zhou
Author-X-Name-First: Xiangxiang
Author-X-Name-Last: Zhou
Title: Regional differences and dynamic evolution of digital trade: data from China
Abstract:
Revealing regional differences and evolutionary patterns is a crucial component of studying digital trade development. This paper constructs an evaluation index system for digital trade development and assesses the level of digital trade development in mainland China of 30 provinces from 2013 to 2020. Using methods such as Dagum Gini coefficient, this study investigates the differences in regional development and the spatial dynamic evolution of digital trade development. The findings indicate that (1) while the overall level of digital trade in China is increasing, it manifests unbalanced growth. Additionally, inter-regional difference, as opposed to intra-regional difference, account for the primary source of digital trade development difference, contributing an annual average of 71.699%. (2) The kernel density distribution of digital trade is gradually narrowing. The absolute difference in the level of digital trade development between China and the four regions (east, central, west, and northeast) is progressively diminishing over time. (3) The Moran’s I index is positive, indicating a strong spatial correlation among digital trade development. In the eastern and western regions, there are ‘high-high’ and ‘low-low’ clusters between adjacent provinces; the dynamic transfer of digital trade levels occurs between provinces of adjacent levels, demonstrating the positive effect of proximity.
Journal: Applied Economics
Pages: 3722-3740
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208338
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208338
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Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3722-3740
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# input file: RAEC_A_2208844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Vasilios-Christos Naoum
Author-X-Name-First: Vasilios-Christos
Author-X-Name-Last: Naoum
Author-Name: Georgios Papanastasopoulos
Author-X-Name-First: Georgios
Author-X-Name-Last: Papanastasopoulos
Author-Name: Panagiotis Selekos
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Selekos
Author-Name: Orestes Vlismas
Author-X-Name-First: Orestes
Author-X-Name-Last: Vlismas
Title: Exploring the asymmetric cost behaviour in the context of European non-listed firms
Abstract:
This study provides international empirical evidence for the asymmetric cost behaviour of operating expenses in the context of the European non-listed firms. We employed a data sample of 4,177,625 firm years observations from Amadeus Database for the period 2009–2017 to explore the asymmetric cost behaviour phenomenon at the EU-28 countries pool and country level. Substantial variation in the direction of the asymmetric cost behaviour, across countries and firm size clusters, has been observed. However, in a considerable number of cases operating expenses exhibit symmetric cost behaviour. We conjecture that the reasons behind the observed pattern of asymmetric cost behaviour in the organizational setting of non-listed firms are the relative low availability of entrepreneurial economic resources and the presence of entrepreneur which might affect the resource allocation decision-making process.
Journal: Applied Economics
Pages: 3778-3803
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208844
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208844
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Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3778-3803
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# input file: RAEC_A_2208334_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nicolas Williams
Author-X-Name-First: Nicolas
Author-X-Name-Last: Williams
Title: Sector specificity of training
Abstract:
Human capital acquired through employer-provided training is pervasive in labour markets and an important determinant of post-schooling wage growth. The literature has focused on understanding under what conditions this training will lead to higher wages. Here I offer another aspect for consideration: Does the proximity of the current job to past jobs affect the return to training? In particular, I look at whether the wage return to training acquired at a previous employer depends upon the relative ‘proximity’ of the worker’s past employer to their current one, where proximity is measured by whether the worker received the training in the same industry or occupation as the current job. I investigate this using data from the British Household Panel Survey, with both fixed effects and instrumental variable estimation. The results suggest that both current and previous employer training spells are important determinants of wages, and both need to be included in wage regressions. Evidence further suggests that the return to formal training is highest if the training was received in a previous job that was in the same industry and occupation as the current one.
Journal: Applied Economics
Pages: 3669-3683
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208334
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208334
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# input file: RAEC_A_2208336_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Title: Hedge and safe-haven attributes of faith-based stocks vis-à-vis cryptocurrency environmental attention: a multi-scale quantile regression analysis
Abstract:
The attractiveness of the equities of the Islamic faith-compliant companies as a hedge or possible diversifier has been underscored; however, there is a lack of empirical research on their safe-haven and hedge attributes against changes in the level of cryptocurrency environmental attention (ICEA). We examine whether various distributions of the ICEA possess a significant predictive power on various quantiles of Islamic sectoral stock returns by employing weekly data on the ICEA and Shariah-compliant stocks from 10 sectors of economic activity and base their multi-scale analysis on the complete ensemble empirical mode decomposition (CEEMDAN) approach. We present the asymmetric causality-in-means and quantile-on-quantile regression between the ICEA and Islamic stocks. The empirical results show a significant predictive power of the ICEA on various quantiles of Islamic sectoral stocks in the medium- and long term. We find that the safe-haven and hedging attributes of investments in Islamic stocks are sector-dependent across the medium- and long-term scales. Hence, our findings emphasize that based on market states, possible safe-haven attributes, diversification opportunities, and hedges for cross-sectoral investments with Islamic stocks are viable along various investment horizons for diverse levels of cryptocurrency environmental attention. These findings provide original valuable insights for portfolio management and improving financial stability.
Journal: Applied Economics
Pages: 3698-3721
Issue: 31
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208336
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208336
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Handle: RePEc:taf:applec:v:56:y:2024:i:31:p:3698-3721
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# input file: RAEC_A_2208850_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Luca Farè
Author-X-Name-First: Luca
Author-X-Name-Last: Farè
Author-Name: Marcus Dejardin
Author-X-Name-First: Marcus
Author-X-Name-Last: Dejardin
Author-Name: Eric Toulemonde
Author-X-Name-First: Eric
Author-X-Name-Last: Toulemonde
Title: Bankruptcy recovery rate and small businesses’ innovation
Abstract:
Small businesses often face a high risk of bankruptcy and harsh financing conditions, which can hamper them from engaging in innovation. This paper investigates whether a bankruptcy system that guarantees a good recovery rate for creditors in case of firms’ liquidation stimulates small businesses’ innovation investments through lower interest rates and therefore easier access to credit. With the help of a borrower-lender model, we derive insights about the interactions between bankruptcy recovery rate, borrowing interest rates and firms’ investments in innovation. The model gives theoretical underpinnings for a subsequent empirical analysis. By using a cross-country sample of micro (1–9 employees)-, small (10–49 employees)-, and medium (50–249 employees)-sized enterprises (MSMEs), our study provides three main results. It shows that an increase in the bankruptcy recovery rate a) is positively associated to MSMEs’ investments in innovation (investment effect); b) reduces the share of MSMEs that are credit constrained because the cost of borrowing is too high (constraint effect); c) reduces the interest rates dispersion for highly profitable MSMEs (dispersion effect). Overall, our findings suggest that improving creditors recovery rate can help promote the innovative behaviour of small businesses through easier financing conditions.
Journal: Applied Economics
Pages: 3870-3903
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208850
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208850
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# input file: RAEC_A_2208851_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yuping Deng
Author-X-Name-First: Yuping
Author-X-Name-Last: Deng
Author-Name: Chunmei Rong
Author-X-Name-First: Chunmei
Author-X-Name-Last: Rong
Author-Name: Rong Chen
Author-X-Name-First: Rong
Author-X-Name-Last: Chen
Title: Does manufacturing servitization reduce emissions intensity? evidence from China
Abstract:
This paper investigates the impact on polluting emissions as a result of manufacturing industries in China offering services as well as products. We merge detailed firm-level statistics covering 2000 to 2011, and use two-way linear fixed effects regression to control for firm and year heterogeneities and a host of control variables. The empirical results show that manufacturing servitization significantly reduces the emission intensity of firms. This effect is achieved by improving the total factor productivity of firms, optimizing the efficiency of energy use, and increasing the share of the highly-skilled labour force. Moreover, the emission reduction effect of manufacturing servitization is more profound in the eastern and central regions, pollution-intensive industries, non-state-owned firms, and processing trade firms. In addition, our extended analysis shows that the emission reduction effects of manufacturing servitization can be strengthened through trade liberalization and cohort study. The major policy implication is that governments should undertake industrial policies that reinforce the positive effects of manufacturing servitization in order to achieve win-win outcomes in manufacturing upgrading and environmental protection.
Journal: Applied Economics
Pages: 3904-3919
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208851
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208851
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# input file: RAEC_A_2208849_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Wen-Ling Chen
Author-X-Name-First: Wen-Ling
Author-X-Name-Last: Chen
Author-Name: Pei-Chin Hong
Author-X-Name-First: Pei-Chin
Author-X-Name-Last: Hong
Title: Compulsory disclosure regulation: the effect of ESG on extreme risk
Abstract:
We examined the impact of compulsory disclosure regulations on the relationship between the Environmental, Social and Governance (ESG) and firm-specific extreme risk. We used a difference-in-difference approach to solve endogenous concerns and found that the negative impact of the ESG score on extreme risk is more significant after announcing compulsory disclosure regulations. Additionally, we demonstrated that this effect becomes more substantial when firms issue green bonds. Finally, the subsample tests showed that the compulsory influence of the government is more evident in firms with high financial transparency and firms with low crash risk. Our empirical findings had policy implications for governments, regulators, and investors.
Journal: Applied Economics
Pages: 3856-3869
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208849
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208849
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Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3856-3869
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# input file: RAEC_A_2208848_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Imlak Shaikh
Author-X-Name-First: Imlak
Author-X-Name-Last: Shaikh
Author-Name: Priyanka Vallabh
Author-X-Name-First: Priyanka
Author-X-Name-Last: Vallabh
Title: Impact of policy uncertainty on gold price in India: evidence from multi commodity exchange (MCX) India and World Gold Council prices
Abstract:
India is one of the largest consumers of gold but remains largely unexplored and requires proper attention from investors, regulators and policymakers. Our study aims to uncover the relationship between policy uncertainty and gold prices in India, considering a timeline from 2004 to 2023. Using India EPU and geopolitical uncertainty-related index, the empirical estimation was performed in a time series framework using standard OLS and augmented regression using data from MCX-India and WGC prices. Our statistical investigation signals that policy uncertainty and gold prices in India are positively associated. This implies a higher degree of policy uncertainty and a higher gold price. Monetary policy uncertainty and interest rate changes shows an asymmetric impact on the gold price in India; the effects were more pronounced after 2015. Furthermore, policy uncertainty contains information explaining gold futures prices and has a two-month lag impact. Thus, gold trading in India is sensitive to the economic outlook of the economy and policy uncertainty. Gold imports in India have an adverse effect on gold prices. It is also reported that the INR/USD exchange rate plays a vital role in gold price setting. Hence, the study suggest that India’s government should develop a healthy gold ecosystem and gold-policy.
Journal: Applied Economics
Pages: 3837-3855
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208848
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208848
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# input file: RAEC_A_2208846_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Loan Cong To Nguyen
Author-X-Name-First: Loan Cong To
Author-X-Name-Last: Nguyen
Author-Name: Michael O’Connor Keefe
Author-X-Name-First: Michael O’Connor
Author-X-Name-Last: Keefe
Title: News feeds are no longer free: policy implications from Australia
Abstract:
In 2021, the Australian Government introduced its News Media and Digital Platforms Mandatory Bargaining Code (‘the Code’) to support the sustainability of the country’s journalism. Using Event Study Methodology, we find a collectively positive stock market reaction in the news media industry to the introduction of the Code, although different patterns amongst individual firms and groups by size to the different stages of the Code’s development. The large-firm group records larger gain in terms of equity value, but a lower percentage gain than small and medium enterprises. The economic importance of our findings reinforces the Australian Government’s regulatory approach as a means to sustain the legitimate interest of businesses and consumers in the news media sector.
Journal: Applied Economics
Pages: 3822-3836
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208846
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208846
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Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3822-3836
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# input file: RAEC_A_2208845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Abdoulaye Kane
Author-X-Name-First: Abdoulaye
Author-X-Name-Last: Kane
Author-Name: Jimmy Lopez
Author-X-Name-First: Jimmy
Author-X-Name-Last: Lopez
Title: Productivity and regulation in the construction sector: evidence for OECD countries
Abstract:
Labour productivity growth in the construction sector has been very weak in recent decades in most OECD countries. This paper addresses this issue based on a panel of 23 countries over the period 1995–2015. First, we use the Ackerberg, Caves, and Frazer (2015) method to propose a multifactor explanation for this lack of productivity growth: (i) average TFP growth is close to zero and even negative for most countries; (ii) average contributions to growth of capital and intermediate inputs are positive but weak, respectively of 0.05% and 0.90% per year, and much smaller than in the manufacturing sector over the same period (respectively of 0.40% and 3.10% per year). Then, we investigate whether reforms of regulations specific to the construction sector might boost productivity there. Using regulation indicators from the ‘Doing Business Report’, we find a negative impact of these regulations on TFP, but not on the intensities of capital and intermediate inputs. Our results suggest that reducing the construction sector regulations might bolster productivity: a switch to the lightest regulations would lead to a long-term TFP increase of 6% on average.
Journal: Applied Economics
Pages: 3805-3821
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208845
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208845
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# input file: RAEC_A_2208852_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ruocan Lu
Author-X-Name-First: Ruocan
Author-X-Name-Last: Lu
Author-Name: Zhihui Yang
Author-X-Name-First: Zhihui
Author-X-Name-Last: Yang
Title: Analysis on the structure and economic resilience capacity of China’s regional economic network
Abstract:
This paper analyzes the heterogeneous influence of economic networks on urban economic resilience capacity from different network characteristics, providing an innovative research perspective and theoretical framework for the economic resilience capacity of urban clusters. The urban economic elasticity is measured by multiple indicators and constructed economic network using night light data, the complex network approach was combined with spatial econometrics to analyse the contribution of economic network linkages and economic network locations to regional economic resilience capacity. The results show that: urban economic network linkage has a significant positive impact on urban economic resilience capacity, and the polycentric pattern of urban clusters has a driving effect on this impact; in contrast, the influence of urban network location on economic resilience capacity has an inverted u-shaped curve. Compared with non-smart cities, regions in smart cities are better able to promote urban economic resilience capacity through economic networks, and the impact of economic networks on regional economic resilience capacity has network external spillover effects beyond geographical distance, The results of the study infer that cities in urban agglomeration should rationalize network locations, and build a coordinated urban agglomeration network structure to enhance economic resilience capacity of the regional economy.
Journal: Applied Economics
Pages: 3920-3938
Issue: 32
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208852
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208852
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Handle: RePEc:taf:applec:v:56:y:2024:i:32:p:3920-3938
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# input file: RAEC_A_2208854_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ahmed Kamara
Author-X-Name-First: Ahmed
Author-X-Name-Last: Kamara
Title: On the properties of the labour wedge: hours worked and government transfers in perspective
Abstract:
Questions surrounding the labour wedge and the tax wedge in the United States are complicated by the fact that, historically, there is a lack of coherent relationship between the series of hours worked (based on standard measurements) and that of the tax wedge. This has been cited as grounds for discounting the tax wedge as a viable explanation for the behaviour of the labour wedge. In this paper, I explore an alternative measurement of labour hours in the United States in a bid to clear up some of the morass surrounding the tax wedge and hours worked. In the process, I show that, the labour wedge is rather more aligned with available labour hours over the business cycle than it does actual hours worked. Moreover, cyclical properties of the available hours series, however puzzling, are explained by the presence of a government transfer scheme which I introduce in the household side of the market. Also, the presence of the transfer scheme alters the marginal rate of substitution (MRS) between consumption and leisure, and by doing so, reverses the cyclical properties of the tax wedge. This puts the tax wedge in alignment with the labour wedge over the business cycle.
Journal: Applied Economics
Pages: 3953-3966
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208854
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208854
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# input file: RAEC_A_2209309_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yuanbin Xu
Author-X-Name-First: Yuanbin
Author-X-Name-Last: Xu
Author-Name: Yuchen Wang
Author-X-Name-First: Yuchen
Author-X-Name-Last: Wang
Author-Name: Fucai Lu
Author-X-Name-First: Fucai
Author-X-Name-Last: Lu
Author-Name: Dan Sheng
Author-X-Name-First: Dan
Author-X-Name-Last: Sheng
Title: A study of the impact of digital inclusive finance on firm value from the perspective of financing constraints
Abstract:
The existing research on the impact of digital inclusive finance on corporate behaviour is relatively extensive, but the research on the impact of digital inclusive finance on corporate value is ignored. To fill in this gap, this study examines the impact of digital inclusive finance on firm value from the perspective of financing constraints, utilizing data on A-share listed companies in China from 2012 to 2019. We found that digital inclusive finance helps increase corporate value. And digital inclusive finance uses digital technology to alleviate financing constraints and improve the credit supply, which in turn increases firm value. Moreover, the impact of digital inclusive finance on firm value demonstrates heterogeneity. Compared with other firms, digital inclusive finance has a greater value-enhancing effect on small-scale and private firms. Our findings suggest that increasing the level of digital inclusive finance in developing countries can help enhance firm value.
Journal: Applied Economics
Pages: 4033-4047
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2209309
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2209309
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# input file: RAEC_A_2208857_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Pradip Banerjee
Author-X-Name-First: Pradip
Author-X-Name-Last: Banerjee
Author-Name: Soumya Guha Deb
Author-X-Name-First: Soumya
Author-X-Name-Last: Guha Deb
Title: Working capital management efficiency, managerial ability, and firm performance: new insights
Abstract:
This paper studies the association of managerial ability (MA) with efficiency in working-capital management (WCM) of firms. Using a large sample of 1,14,173 firm-year observations between 1988 and 2018 in the US, we show a negative contemporaneous relationship between MA and efficiency of WCM, indicating that more able managers manifest higher WCM efficiency and thereby affect firm performance positively through a mediating channel of WCM. Further, we show that this association is non-linear in nature with managers focusing more on long-term value-enhancing projects for the firm beyond a threshold MA level, having already attained the optimal efficiency in WCM. The results remain robust after a series of robustness tests.
Journal: Applied Economics
Pages: 4001-4018
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208857
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208857
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# input file: RAEC_A_2208855_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mohamed Hedi Lahouel
Author-X-Name-First: Mohamed Hedi
Author-X-Name-Last: Lahouel
Author-Name: Moez Ben Tahar
Author-X-Name-First: Moez Ben
Author-X-Name-Last: Tahar
Author-Name: Sarra Ben Slimane
Author-X-Name-First: Sarra Ben
Author-X-Name-Last: Slimane
Author-Name: Mohamed Ali Houfi
Author-X-Name-First: Mohamed Ali
Author-X-Name-Last: Houfi
Title: The dynamic effects of fiscal policy and fiscal multipliers in Tunisia
Abstract:
This study analyses the macroeconomic effects of fiscal policy by estimating fiscal multipliers for Tunisia. The study is based on the Structural Vector Autoregression (SVAR) model and uses quarterly data from 2000Q1 to 2019Q4. Five main insights can be drawn from these results. First, fiscal multipliers are moderate, as suggested by earlier studies. Second, spending multipliers generated by total and consumption expenditures, respectively, are small, implying that government spending generates substantial crowding out effects. Third, investment multipliers are larger than consumption multipliers. Fourth, fiscal multipliers have declined in the post-2011 revolution period, suggesting that spending multipliers are lower during times of recession. Fifth, domestic supply shocks could shape the effects of fiscal policy and cause spending multipliers to fall.
Journal: Applied Economics
Pages: 3967-3985
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208855
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208855
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# input file: RAEC_A_2208856_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: J. Wesley Burnett
Author-X-Name-First: J. Wesley
Author-X-Name-Last: Burnett
Author-Name: Calvin Blackwell
Author-X-Name-First: Calvin
Author-X-Name-Last: Blackwell
Title: Graphical causal modelling: an application to identify and estimate cause-and-effect relationships
Abstract:
This paper offers an accessible discussion of graphical causal models and how such a framework can be used to help identify causal relations. A graphical causal model represents a researcher’s qualitative assumptions. As a result of the credibility revolution, there is growing interest to properly estimate cause-and-effect relationships. Using several examples, we illustrate how graphical models can and cannot be used to identify causation from observational data. Further, we offer a replication of a previous study that explored college enrolment by high school seniors who were eligible for student aid. From the original study, we use a graphical causal model to motivate the quantitative and qualitative modelling assumptions. Using a similar difference-in-difference approach based on propensity score matching, we estimate a smaller average treatment effect than the original study. The smaller estimated effect arguably stems from the graphical causal model’s delineation of the original model specification.
Journal: Applied Economics
Pages: 3986-4000
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208856
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208856
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# input file: RAEC_A_2208859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Željko Bogetić
Author-X-Name-First: Željko
Author-X-Name-Last: Bogetić
Author-Name: Dominik Naeher
Author-X-Name-First: Dominik
Author-X-Name-Last: Naeher
Title: The good, the bad, and the ugly: New evidence on alternative views of corruption
Abstract:
Different views of corruption are discussed in the literature, ranging from theories highlighting a positive role of corruption (to ‘grease the wheels’ of an economy) to negative (acting as ‘sand in the wheels’) or even destructive effects of corruption on economic outcomes. The empirical evidence in this context is mixed, with alternative theories being supported by different studies, typically relying on different data sources, time periods, and measures of corruption. In this paper, we assess several alternative views of corruption simultaneously in a single empirical framework. Specifically, we test six prominent hypotheses regarding the role of corruption for government revenues using a comprehensive country-level panel dataset covering 194 countries in the period 1996–2019. Our results help to shed light on the factors that are empirically important in explaining the link between corruption and government revenues, including the role of governance, autocracy, fragile states, and natural resources.
Journal: Applied Economics
Pages: 4019-4032
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208859
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208859
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# input file: RAEC_A_2208853_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yongyi Zhu
Author-X-Name-First: Yongyi
Author-X-Name-Last: Zhu
Author-Name: Di Yu
Author-X-Name-First: Di
Author-X-Name-Last: Yu
Title: Can government digitalization promote firm productivity? Evidence from Chinese listed firms
Abstract:
In the digital era of governance, few studies have analysed the influence of digital government on micro economies. To fill this gap, we explore the nexus between digital government and firm total factor productivity (TFP), and uncover the potential transmission channels behind this connection by focusing on Chinese listed firms from 2010 to 2017 and utilizing panel regression with firm-, year-, and province-fixed effects. Our findings confirm that digital government has constructive effects on firm TFP. Furthermore, empirical results suggest that this favourable impact can be transmitted through three channels of firm transaction costs and innovation, digital infrastructure construction, and government-market relationships. Further analysis reveals that the beneficial effect of digital government on firms is more significant in provinces with low fiscal transparency and complex topography, indicating that digital government compensates for the disadvantages of low fiscal transparency and inconvenience of steep terrain. Based on these conclusions, we provide suggestions for government digitalization to improve the performance of government-microeconomic complementation.
Journal: Applied Economics
Pages: 3939-3952
Issue: 33
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2208853
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2208853
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# input file: RAEC_A_2209311_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Carlos Alba
Author-X-Name-First: Carlos
Author-X-Name-Last: Alba
Author-Name: Gabriel Cuadra
Author-X-Name-First: Gabriel
Author-X-Name-Last: Cuadra
Author-Name: Raul Ibarra
Author-X-Name-First: Raul
Author-X-Name-Last: Ibarra
Title: The effects of central bank extraordinary measures on financial conditions: Evidence from Mexico
Abstract:
This paper analyses the effects of the extraordinary measures implemented by the Central Bank of Mexico during the COVID-19 pandemic on financial conditions. For this purpose, we estimate a factor-augmented vector autoregressive model for the period 2001–2021. Based on this model, we construct a Financial Conditions Index, estimate the response of this indicator and its components from a shock to the outstanding amount of these measures, and conduct a counterfactual exercise to further analyse the effect of the aforementioned measures. The main results indicate that these extraordinary measures seem to have contributed to improve financial conditions. In particular, we find that if these measures had not been implemented, the sovereign risk premium, the 10-year government bond yield, the slope of the yield curve, and the long- and short-term yield spreads between Mexico and the US would have been higher by around 56, 31, 27, 37, and 49 basis points in December 2020, respectively. At the same time, the Mexican peso/US dollar exchange rate and its volatility would have been higher by 5 and 2 percentage points, respectively. In turn, the Mexican stock market index would have been lower by 10 percentage points.
Journal: Applied Economics
Pages: 4064-4085
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2209311
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2209311
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# input file: RAEC_A_2210815_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Lara Agnoli
Author-X-Name-First: Lara
Author-X-Name-Last: Agnoli
Author-Name: J. François Outreville
Author-X-Name-First: J. François
Author-X-Name-Last: Outreville
Title: The role of behavioural antecedents in driving wine consumption in Taiwan restaurants
Abstract:
Taiwan is becoming increasingly important in the international wine scene, with restaurants still not representing pivotal distribution channels for wine. This study applied the Theory of Planned Behaviour (TPB) to understand the role of attitudes, subjective norms and perceived behavioural control as drivers or barriers in consuming wine in Taiwan restaurants. A survey by questionnaire was developed, involving 310 respondents from Taiwan. Structural Equation Models were applied to analyse data, test the validity of TPB and compare TPB with the Theory of Reasoned Action (TRA), hypothesizing no influence of perceived behavioural control on wine consumption in restaurants. Results highlight that TPB better predicts wine consumption in restaurants than TRA. Further, they highlight that people are more concerned about the opinion of others than their own attitude towards the product and the perceived control over the behaviour is the most important driver for the intention to consume wine in a restaurant, mainly linked to cultural reasons.
Journal: Applied Economics
Pages: 4086-4099
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210815
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210815
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# input file: RAEC_A_2210817_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sha Wu
Author-X-Name-First: Sha
Author-X-Name-Last: Wu
Author-Name: Mengfei Wan
Author-X-Name-First: Mengfei
Author-X-Name-Last: Wan
Title: Does Confucian culture reduce corporate default risk? Evidence from China
Abstract:
Confucianism is the cornerstone of traditional Chinese culture, and it has a significant impact on corporate behaviour. This paper investigates the relationship between Confucian culture and default risk. Using a sample of Chinese listed companies that covers the period between 2010 and 2020, we find robust evidence that Confucian culture is negatively associated with the probability of default. The effect operates through improvements in reputation and resource acquisition. It is more pronounced at firms that face severe financing constraints, at firms that are located in regions with high marketization, and at firms that are subject to weaker external supervision. Additional analyses show that Confucian culture improves corporate social responsibility and the quality of internal control, reduces earnings management and corporate risk-taking, and, ultimately, decreases the overall value of the firm. On the whole, our findings provide evidence of the role of cultural factors in filling institutional voids.
Journal: Applied Economics
Pages: 4114-4127
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210817
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210817
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# input file: RAEC_A_2210818_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: William Miles
Author-X-Name-First: William
Author-X-Name-Last: Miles
Author-Name: Samuel Moon Jung
Author-X-Name-First: Samuel Moon
Author-X-Name-Last: Jung
Author-Name: Chu-Ping Chen Vijverberg
Author-X-Name-First: Chu-Ping Chen
Author-X-Name-Last: Vijverberg
Title: The home price–income relationship for US states
Abstract:
There are conflicting theories on whether house prices and income should share a long-run relationship. Empirical work on the topic has yielded mixed results. Most previous studies have investigated whether the house price/income ratio is stationary (short memory) or non-stationary (has a unit root) but have not allowed for the intermediate possibility of long memory or fractional integration. We estimate fractional integration for the house price/income ratio for US states. We find most states exhibit long memory in their ratios. The states with the most long memory tend to be in the high-priced east coast and California. Southern and great plains states, in contrast, tend to exhibit the least persistence in the house price/income metric. In some housing markets – some east coast states, California, Arizona, Florida, and Nevada, home costs can become less and less affordable for local residents, with no tendency to reverse this unaffordability within a reasonable time horizon for potential buyers. In addition to the univariate estimates, multivariate fractional cointegration tests are implemented, and the results support the findings of non-affordability hypothesis.
Journal: Applied Economics
Pages: 4128-4139
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210818
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210818
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# input file: RAEC_A_2210816_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: José E. Boscá
Author-X-Name-First: José E.
Author-X-Name-Last: Boscá
Author-Name: Jose Cano-Leiva
Author-X-Name-First: Jose
Author-X-Name-Last: Cano-Leiva
Author-Name: Javier Ferri
Author-X-Name-First: Javier
Author-X-Name-Last: Ferri
Title: COVID-19 vaccination campaigns and health outcomes in Spain during 2021
Abstract:
We evaluate the effects of vaccines in the evolution of the epidemic in Spain during 2021. To this end, we estimate the effect of vaccination in terms of reducing infections, hospitalizations, ICU admissions, and deaths. We also compare the health impact of COVID-19 with that caused by recent influenza seasons, in a scenario where all the population had been vaccinated. The positive impact of vaccination on health indicators has been extraordinary. The non-availability of vaccines would have increased COVID-19 deaths by 571% compared to observed deaths. Moreover, the relative benefit of vaccination increases with the severity of the indicator: greater for deaths and ICU admissions, less for infections and hospitalizations. Under the assumption that the entire population had been vaccinated with the COVID-19 vaccine from the first week of April, the impact of the disease in terms of hospitalizations and deaths during 2021 would have been above a low activity flu season, but in line with a moderate/high activity flu season.
Journal: Applied Economics
Pages: 4100-4113
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210816
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210816
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# input file: RAEC_A_2209310_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ying Wu
Author-X-Name-First: Ying
Author-X-Name-Last: Wu
Author-Name: Li Deng
Author-X-Name-First: Li
Author-X-Name-Last: Deng
Author-Name: Wen Huang
Author-X-Name-First: Wen
Author-X-Name-Last: Huang
Title: Major government-background customers and corporate green innovation
Abstract:
Using a sample of 1,595 Chinese listed firms from 2009 to 2019 and the Ordinary Least Squares method, we find that major government-background consumers have a positive effect on corporate green innovation. This finding is robust to a battery of tests. Mechanism tests suggest that major government-background consumers promote corporate green innovation output by alleviating financial constraints rather than by providing information feedback. Further analysis shows that major government-background consumers improve green innovation efficiency and are conducive to green invention innovation and green utility innovation. Finally, we find that stronger intellectual property protection strengthens the association between major government-background consumers and corporate green innovation. Our study suggests that the identification of larger consumers plays an important role in green innovation.
Journal: Applied Economics
Pages: 4049-4063
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2209310
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2209310
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# input file: RAEC_A_2210819_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ryan Garvey
Author-X-Name-First: Ryan
Author-X-Name-Last: Garvey
Author-Name: Jingbin He
Author-X-Name-First: Jingbin
Author-X-Name-Last: He
Author-Name: Fei Wu
Author-X-Name-First: Fei
Author-X-Name-Last: Wu
Title: Retail broker trading restrictions and market liquidity: an examination of GameStop
Abstract:
We examine changes in market liquidity when several popular U.S. retail brokers restrict client trading in GameStop stock over a six-day period in early 2021 due to higher clearinghouse deposit requirements. When retail investor participation in a high-attentionstock becomes restricted, trading activity declines and trading venue shifts occur – there is less trading in dark markets and more fragmented trading across U.S. stock exchanges. We also find that when a stock order flow mix becomes comprised of fewer retail investors and a higher concentration of institutional investors, the quoted bid-ask spread widens, and trading cost measures rise significantly.
Journal: Applied Economics
Pages: 4140-4153
Issue: 34
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210819
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210819
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# input file: RAEC_A_2210824_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tetsuji Tanaka
Author-X-Name-First: Tetsuji
Author-X-Name-Last: Tanaka
Author-Name: Jin Guo
Author-X-Name-First: Jin
Author-X-Name-Last: Guo
Title: Is agricultural self-sufficiency effective to protect local markets from global markets? Empirical evidence from the beef sector in Japan
Abstract:
Although for decades, the Ministry of Agriculture, Forestry, and Fishery of Japan has formed agricultural policies based on food self-sufficiency as a vital factor in securing the domestic food supply, the impacts of agricultural self-sufficiency on the relationship between international and domestic markets are not well understood. Most previous literature on agricultural price transmissions applies conventional error correction and vector autoregression models. However, we employ the state-of-the-art technique, namely the time-varying parameter vector autoregression (TVP-VAR) connectedness model, as well as the dynamic conditional correlations based on the asymmetric Baba – Engle–Kraft – Kroner method to investigate the effectiveness of beef self-sufficiency and its inventory in stabilizing local beef prices in Japan. Our primary results indicate that the global beef price is the net transmitter of shocks, while the home-grown beef price in Japan is the net receiver of shocks. Furthermore, we find that high self-sufficiency in beef does not significantly protect local beef markets from global beef markets, but the imported beef inventory effectively alleviates the wholesale price volatility of imported beef. One policy implication is that the government should not take protectionist policies to enhance beef self-sufficiency, and import beef stocks could be accumulated to stabilize imported beef markets.
Journal: Applied Economics
Pages: 4236-4250
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210824
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210824
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# input file: RAEC_A_2210821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zheng Li
Author-X-Name-First: Zheng
Author-X-Name-Last: Li
Author-Name: Jingjing Zeng
Author-X-Name-First: Jingjing
Author-X-Name-Last: Zeng
Title: Intra- and inter-individual risk attitude heterogeneity and the impact on road travel: evidence from a dynamic procedural model
Abstract:
This paper develops a dynamic procedural model to understand the day-to-day evolution of road traffic and risky mode choice behaviour. We embed a modified Bureau of Public Roads function and a queueing model into a dynamic traffic flow model to estimate information on travel time and in-vehicle crowding. Then, the estimated information is fed into a risky mode choice model, with the joint consideration of intra- and inter-individual risk attitude heterogeneity. In order to reflect what may be happening in the real market, we establish a close loop with individuals’ mode choice behaviours shaped by their travel experiences and historical information, the induced impact on traffic flow, and more importantly, the feedback and interplay between them. Our model delivers realistic and robust results, in which risk attitudes play the most prominent role.
Journal: Applied Economics
Pages: 4177-4193
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210821
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210821
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# input file: RAEC_A_2210825_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Daniel Lo
Author-X-Name-First: Daniel
Author-X-Name-Last: Lo
Author-Name: Michael James McCord
Author-X-Name-First: Michael James
Author-X-Name-Last: McCord
Author-Name: Graham Squires
Author-X-Name-First: Graham
Author-X-Name-Last: Squires
Title: Regional spillover of housing (un)affordability: an empirical study on the residential housing markets for first-time buyers in the U.K
Abstract:
This study examines the lead–lag relationships between the levels of housing affordability of different regions of the U.K. By utilizing government data, a number of housing affordability indicators are constructed to explore whether spatial diffusion exists between different regional submarkets of first-time homebuyers over the period of 2000 – 2021. The results reveal that during periods of economic expansion, housing unaffordability tended to diffuse from regions of slower economic growth to regions of higher economic development. It is further evident that in the aftermath of the GFC, the London housing market Granger-caused other regional markets in terms of housing (un)affordability. Lastly, the U.K’.s decision to leave the EU in 2016 seems to have led to more divergence between the submarket regions, which in a Granger causal sense, have become less causally correlated in terms of pricing. We conjecture that the causal interactions between the different regional housing submarkets exist with the lead–lag relationships governed primarily by their underlying macroeconomic fundamentals.
Journal: Applied Economics
Pages: 4251-4268
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210825
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Handle: RePEc:taf:applec:v:56:y:2024:i:35:p:4251-4268
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# input file: RAEC_A_2210820_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jiqin Ren
Author-X-Name-First: Jiqin
Author-X-Name-Last: Ren
Author-Name: Yuanxuan Guo
Author-X-Name-First: Yuanxuan
Author-X-Name-Last: Guo
Author-Name: Jingjing Li
Author-X-Name-First: Jingjing
Author-X-Name-Last: Li
Author-Name: Jingjing Li
Author-X-Name-First: Jingjing
Author-X-Name-Last: Li
Title: Can internet concern about COVID-19 help predict stock markets: new evidence from high-concern and low-concern periods
Abstract:
The unprecedented outbreak of Corona Virus Disease 2019 (COVID-19) has resulted in extreme volatility in stock markets. This study mainly examines the predictive ability of the Internet concern about COVID-19 on stock index returns, based on the framework of GARCH type models. Instead of using the whole sample period, we divide the Internet concern about COVID-19 into high-concern and low-concern periods by breakpoint test method and then examine its predictive ability for stock returns in different periods, respectively. Using stock indexes of 10 countries and abnormal Google search volume of ‘coronavirus’ as study samples, the results reveal that (1) the Internet concern about COVID-19 has a negative impact on the stock index returns in the whole and high-concern periods, while its influence in the low-concern period is mixed; (2) the Internet concern about COVID-19 improves the prediction accuracy of stock index returns in the high-concern period, while seems to lose its powerful predictive ability in the whole and low-concern periods.
Journal: Applied Economics
Pages: 4155-4176
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210820
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# input file: RAEC_A_2317266_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Bo Zha
Author-X-Name-First: Bo
Author-X-Name-Last: Zha
Title: Impact of Weibo sentiment and R&D innovation as signalling mechanisms on venture corporate financing
Abstract:
Weibo sentiment and R&D innovation are important signals that influence the financing processes of venture corporations. We collect relevant data between 1 January 2011, and 31 December 2020, to analyse the effect of the signalling mechanism of Weibo sentiment and R&D innovation on venture corporate financing. The conclusions are as follows. The positive effects of Weibo sentiment on venture valuation and investment success are weaker than the effects of R&D innovation, and the positive effects of Weibo sentiment and R&D innovation on venture valuations are stronger for young than older venture firms. The positive effects of Weibo sentiment and R&D innovation on venture valuations are stronger for less experienced ventures than for more experienced ventures. These conclusions show that the two signals of Weibo sentiment and R&D innovation have different strengths in terms of venture valuation and investment success, with the effect of the Weibo sentiment signal being relatively less strong. Moreover, venture corporate age and venture corporate experience play important negative moderating roles in the relationship between the two signals and venture valuation.
Journal: Applied Economics
Pages: 4269-4287
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2024.2317266
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# input file: RAEC_A_2210823_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Peng Nie
Author-X-Name-First: Peng
Author-X-Name-Last: Nie
Author-Name: Qiaoge Li
Author-X-Name-First: Qiaoge
Author-X-Name-Last: Li
Title: Does energy poverty increase health care expenditures in China?
Abstract:
Using the 2012–2018 waves of the China Family Panel Studies, we investigate the impact of energy poverty (EP) on health care expenditures among Chinese adults aged 18+. Employing a methodology combining a random effects two-part model and instrumental variable estimations, we show that EP leads to higher levels of total (305 yuan/year), out-of-pocket (199 yuan/year), inpatient (230 yuan/year) and other (113 yuan/year) health care expenditures, with more pronounced impacts among females and those living in urban areas and Eastern China. These results are robust not only to alternative EP and health care expenditure measures but also to a series of estimation approaches that control for endogeneity. An additional structural equation modelling analysis of the underlying pathways further reveals that this EP-health care expenditure relationship is mediated by individual self-reported health as well as expenditures on food and other daily necessities. Combating EP is an effective way to improve people’s health and reduce the burden on health care expenditures. Policymakers should also pay more attention to vulnerable groups such as women.
Journal: Applied Economics
Pages: 4209-4235
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210823
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210823
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# input file: RAEC_A_2210822_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Soumaya Yaakoubi
Author-X-Name-First: Soumaya
Author-X-Name-Last: Yaakoubi
Title: Investor sentiment and skewness risk premium
Abstract:
This paper provides new evidence on the pricing of market skewness risk by incorporating investor sentiment in the relation between sensitivity to innovations in implied market skewness and expected stock returns. Using both univariate and multivariate specifications, we conduct an extensive series of asset pricing tests on the cross-section of stocks during high and low sentiment periods separately. We find that market skewness risk carries a negative premium that cannot be explained away by known risk factors when sentiment is low. In contrast, the results are not conducive to a risk explanation when sentiment is high.
Journal: Applied Economics
Pages: 4194-4208
Issue: 35
Volume: 56
Year: 2024
Month: 07
X-DOI: 10.1080/00036846.2023.2210822
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210822
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# input file: RAEC_A_2210827_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jisheng Yang
Author-X-Name-First: Jisheng
Author-X-Name-Last: Yang
Author-Name: Yingxin Kou
Author-X-Name-First: Yingxin
Author-X-Name-Last: Kou
Title: The effect of multiple shocks on domestic production network: evidence from China’s manufacturing industries
Abstract:
The domestic production network in China has been affected by multiple shocks in recent years, and this study reveals the dynamic changes of the shocks’ effects. Based on a domestic trade model with industry-level unobserved factors, we examine the trends of multiple shocks to the domestic market of China’s manufacturing industries and find that the domestic market has been bolstered by upward shocks until 2010, while has been depressed by downward shocks thereafter. Furthermore, based on multi-regional input–output analysis, we evaluate the impacts of domestic market shocks on industries’ value-added in the domestic value chain (DVC). We find that from 2004 to 2012, the domestic market shocks significantly promoted industries to participate in DVC embodied in the global value chain (DVC1), while after 2012 the shocks began to promote industries to participate in DVC completely based on endogenous capabilities (DVC2). However, the DVC2 position has not been upgraded by domestic market shocks. From another perspective, we investigate the impacts of domestic market shocks on the industrial linkage structure and find that the impact on industries’ centrality turns from negative to positive after the 2008 global financial crisis.
Journal: Applied Economics
Pages: 4315-4328
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210827
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# input file: RAEC_A_2210828_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chen Li
Author-X-Name-First: Chen
Author-X-Name-Last: Li
Author-Name: Yuminzi Fang
Author-X-Name-First: Yuminzi
Author-X-Name-Last: Fang
Author-Name: Ce Song
Author-X-Name-First: Ce
Author-X-Name-Last: Song
Title: Corporate green innovation behaviour and investment efficiency: evidence from China
Abstract:
Corporate green innovation has aroused attention from academics and practitioners in recent years, but the green innovation-investment decision nexus is less explored. Using Chinese-listed firms in the Shanghai and Shenzhen Stock Exchange from 2007 to 2019 as a sample, our research finds that green innovation significantly improves investment efficiency by mitigating over-investment. This finding still holds after addressing endogeneity tests and conducting additional robustness checks. Channel analysis shows that research and development expenditure is an underlying mechanism. Further examinations reveal that green innovation’s influence is more significant in non-politically connected, low-financing-constrained firms and firms with many independent directors. Our paper offers new insights into the influence at firm-level of concrete corporate social responsibility strategies, and the green innovation-investment decision nexus, and presents important policy implications for sustainable development.
Journal: Applied Economics
Pages: 4329-4343
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210828
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210828
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# input file: RAEC_A_2211337_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yongchang Shen
Author-X-Name-First: Yongchang
Author-X-Name-Last: Shen
Author-Name: Yunyun Fu
Author-X-Name-First: Yunyun
Author-X-Name-Last: Fu
Author-Name: Malin Song
Author-X-Name-First: Malin
Author-X-Name-Last: Song
Title: Digital finance promotes sustainable total factor eco-efficiency: evidence from China
Abstract:
A super-efficient SBM model was constructed using Chinese provincial panel data from 2011 to 2018 to explore the impact of digital finance on sustainable total factor eco-efficiency (STFEcE) and its mechanisms of action. The results show that digital finance can promote the improvement of STFEcE, and this promotion is heterogeneous. Western regions with more backward financial development, ecologically inefficient regions, and financially weakly regulated regions have more significant eco-efficiency improvements from digital financial services. Digital finance influences STFEcE by expanding the scale of green credit and enhancing the level of green and digital technology innovation. Therefore, the government should support the efficient integration of digital technology and financial services in macro policies, accelerate the infrastructure construction of digital finance, eliminate the digital divide, and create a favourable financial environment for improving STFEcE.
Journal: Applied Economics
Pages: 4389-4403
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211337
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# input file: RAEC_A_2210826_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jie Gao
Author-X-Name-First: Jie
Author-X-Name-Last: Gao
Author-Name: Feng Huang
Author-X-Name-First: Feng
Author-X-Name-Last: Huang
Title: Major-customer geographic proximity and supplier trade credit: empirical evidence from China
Abstract:
Customer geographical proximity is a factor influencing supplier firms’ trade-offs when granting customers trade credits. However, the extant literature offers scant empirical evidence on the effect of customer location on supplier firm’s trade credit. This paper investigates the impact of major customers’ geographical proximity on a supplier firm’s trade credit. Using a sample of 5,587 observations of publicly listed Chinese firms between 2007 and 2017, we document a positive relationship between major customers’ geographical distance and the supplier firm’s trade credit. Moreover, the main results remain robust when changing samples and considering endogeneity problems. This paper also tests two potential channels and identifies the exploring market channel that exists in our sample. Furthermore, the main relation is more pronounced in supplier firms with low financial risk, operating in areas of high marketization, high product development, strong legal environments, and low economic policy uncertainty. This paper extends the existing literature on the economic consequences of customer characteristics on supplier firms to include customer geographic proximity. In addition, this paper sheds light on supply chain risk management.
Journal: Applied Economics
Pages: 4289-4314
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210826
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# input file: RAEC_A_2211336_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: James Fell
Author-X-Name-First: James
Author-X-Name-Last: Fell
Author-Name: Andrew Duver
Author-X-Name-First: Andrew
Author-X-Name-Last: Duver
Title: Non-tariff measures: a methodology for the quantification of bilateral trade effects of policy measures at a product level
Abstract:
Trade negotiators are confronted with the policy challenge of determining which non-tariff measures (NTMs) and products to focus on, particularly in the agriculture and food sectors, which face a prevalence of NTMs. Quantitative advice on the trade effects of different measures can inform one aspect of a negotiator’s multifaceted prioritization process. Despite well-established methods for the quantification of trade policies at an aggregate bilateral trade level, the product-level literature suffers from a general misapplication of economic theory, leaving much of it divergent from microeconomic foundations. Furthermore, the literature generally makes compromises that inhibit the ability to draw useful insight on importer-specific policy variables like NTMs. In light of this gap in the literature, we propose an approach that leads to a proof-of-concept quantification methodology for bilateral product-level analysis, fulfiling a need in the body politic to defensibly identify trade effects of NTMs at a bilateral and product level. International grains markets are used as an example to demonstrate the proof-of-concept.
Journal: Applied Economics
Pages: 4374-4388
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211336
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211336
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# input file: RAEC_A_2210830_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: The role of COVID-19 in herding: evidence from the Croatian stock market
Abstract:
This paper explores the role of the COVID-19 pandemic on the herding behaviour across market participants in the Croatian market. The analysis uses daily prices of the Croatian stock index, spanning the period January 2016 to December 2022. The hypothesis of the herding behaviour is tested through the quantile regression approach. The findings document no evidence of herding prior to the pandemic crisis. In contrast, herding is discovered during the COVID-19 period. The paper provides policymakers and investors with valuable information to draw significant measures in their investment portfolio management during crises and pandemics.
Journal: Applied Economics
Pages: 4363-4373
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210830
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210830
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# input file: RAEC_A_2210829_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Axelle Heyert
Author-X-Name-First: Axelle
Author-X-Name-Last: Heyert
Author-Name: Laurent Weill
Author-X-Name-First: Laurent
Author-X-Name-Last: Weill
Title: Never forget, never forgive: the impact of inflation on trust in banks
Abstract:
This paper investigates how inflation influences an individual’s trust in banks. Using individual data covering 72 countries, we find that inflation, both recent and experienced throughout life, exerts a detrimental influence on trust in banks. Even if recent inflation has a stronger impact, these results support the view that inflation has both short- and long-term effects on trust in banks. Additional estimations show that individual characteristics like education and access to information can affect the negative impact of inflation on trust in banks. Overall, our results indicate that fighting against inflation prevents a lasting reduction of trust in banks.
Journal: Applied Economics
Pages: 4344-4362
Issue: 36
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2210829
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2210829
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# input file: RAEC_A_2212964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Noorasiah Sulaiman
Author-X-Name-First: Noorasiah
Author-X-Name-Last: Sulaiman
Author-Name: Nurul Fathnin Muhamad Bustaman
Author-X-Name-First: Nurul Fathnin
Author-X-Name-Last: Muhamad Bustaman
Author-Name: Chor Foon Tang
Author-X-Name-First: Chor Foon
Author-X-Name-Last: Tang
Title: Economic growth and female labour force participation in an ageing society: evidence from Southeast Asia
Abstract:
This study examines the impact of female labour participation and life expectancy on economic growth in Southeast Asia economies using non-stationary panel data techniques. The study utilizes balanced panel data spanning from 1992 to 2020, encompassing ten countries in Southeast Asia. The results reveal that economic growth, female labour participation, and other factors are cointegrated. The findings indicate that trade openness has a negative impact on economic growth. However, we find that female labour participation, female longevity, female education, domestic investment, and foreign direct investment have a positive long-term effect on economic growth. Our study also highlights that the effect of female labour participation on growth varies depending on female longevity. We find that female labour participation positively impacts economic growth but changes negatively when countries exhibit a high level of female life expectancy.
Journal: Applied Economics
Pages: 4481-4491
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2212964
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# input file: RAEC_A_2211342_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yan Li
Author-X-Name-First: Yan
Author-X-Name-Last: Li
Author-Name: Chao Liang
Author-X-Name-First: Chao
Author-X-Name-Last: Liang
Author-Name: Toan Luu Duc Huynh
Author-X-Name-First: Toan Luu Duc
Author-X-Name-Last: Huynh
Title: Combination forecast based on financial stress categories for global equity market volatility: the evidence during the COVID-19 and the global financial crisis periods
Abstract:
The 2008 global financial crisis and the COVID-19 pandemic both decrease economic growth and lead to high uncertainty in global stock markets, and financial stress information is closely linked to financial crises. To improve the predictability of the realized volatility of the global equity indices during crises, we examine the predictive role of the Global Financial Stress Index (GFSI) and its categories. We find that the combination predictions based on GFSI’s five incorporated categories and three region-based categories outperform the predictions based on the raw GFSI for most indices. Specifically, the DMSPE combination model with a low discount factor has accurate forecasts for 5- and 22-day-ahead realized volatility, and it also performs better than the equal-weighted and the trimmed mean combination methods. In this study, we present a comprehensive analysis of the predictive role of financial stress information in stock market volatility during crises, and the empirical evidence provides a positive case against the ‘forecast combination puzzle’. Our findings are very instructive for policymakers and investors to make their own short-term and long-term plans in crisis.
Journal: Applied Economics
Pages: 4435-4470
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211342
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211342
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# input file: RAEC_A_2276088_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yan Wu
Author-X-Name-First: Yan
Author-X-Name-Last: Wu
Author-Name: Xueyu Wang
Author-X-Name-First: Xueyu
Author-X-Name-Last: Wang
Author-Name: Cong Hu
Author-X-Name-First: Cong
Author-X-Name-Last: Hu
Title: The impact of China’s financing to Africa on bilateral trade intensity under the Belt and Road Initiative
Abstract:
Based on panel data from 2000 to 2021 covering African 52 countries under the Belt and Road Initiative (BRI), and utilizing a system generalized method of moments with instrumental variables, the study finds that China’s financing has played a positive role in both export and import intensities of African countries with China. However, the impacts of different financing types on trade intensities vary by different country groups and periods. First, Chinese outward foreign direct investment (OFDI) has a much bigger impact on both export intensity and import intensity, and aid has a much bigger impact on export intensity in resource-rich African countries than other countries. Second, Chinese OFDI has a much bigger impact on export intensity and aid has a much bigger impact on both export and import intensities in low-income African countries than other countries. Third, the regression results from different periods indicate that Chinese financing has enhanced the bidirectional trade relations between China and Africa since BRI launch. The study is conducive to the exploration of multinational corporations and foreign aid’s role in trade relations and will help African countries use Chinese capital to promote bilateral cooperation and get rid of poverty.
Journal: Applied Economics
Pages: 4507-4527
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2276088
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# input file: RAEC_A_2211338_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jiyuan Wang
Author-X-Name-First: Jiyuan
Author-X-Name-Last: Wang
Author-Name: Meilian Zhang
Author-X-Name-First: Meilian
Author-X-Name-Last: Zhang
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Title: The Effect of informal caregiving on caregivers’ healthcare utilization in China
Abstract:
A fast-ageing population implies an upsurge in demand for caregiving. We examine the causal effect of informal caregiving on caregivers’ realized and forgone healthcare utilization based on data from China. Accounting for the potential endogeneity in caregiving, we find that caregivers not only use more outpatient care and self-treatment, but are also more likely to forgo necessary inpatient care. Caregiving also increases the out-of-pocket expenditures of all types of healthcare. Further mechanism analysis shows that caregiving worsens caregivers’ health and takes up time and economic resources for healthcare utilization, which causes the coexistence of increased realized and forgone healthcare use. Heterogeneity analysis reveals that those with tighter budgets and higher marginal costs for healthcare (e.g. rural or less educated caregivers) tend to bear larger increases in caregiving-driven health costs. Our results shed light on the overlooked benefit of long-term care policies if accounting for the spillover effects of informal care provision on caregivers’ healthcare use, particularly for disadvantaged groups.
Journal: Applied Economics
Pages: 4405-4419
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211338
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211338
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# input file: RAEC_A_2212965_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chunmei Li
Author-X-Name-First: Chunmei
Author-X-Name-Last: Li
Author-Name: Jingya Wu
Author-X-Name-First: Jingya
Author-X-Name-Last: Wu
Author-Name: Chinyakwa Amos
Author-X-Name-First: Chinyakwa
Author-X-Name-Last: Amos
Author-Name: Yingzhe Su
Author-X-Name-First: Yingzhe
Author-X-Name-Last: Su
Title: Interregional industrial transfer, industrial correlation spillover, and productivity: evidence from China’s textile industry
Abstract:
This paper studies the knowledge spillover effect through industrial correlation in the process of interregional textile industry transfer and its effects on the TFP of China’s textile industry. The paper calculates the industrial similarity coefficients of subdivided industries with the textile industry and identifies the related industries of China’s textile industry by using the data of China’s input-output table and extension tables from 2002 to 2017. Then, the paper defines the industrial correlation spillover as the weighted sum of the indirect R&D investment of one industry from its related industries and constructs a quantitative method to qualify the industrial correlation spillover. Furthermore, the paper makes two empirical analyses on the existence of industrial correlation spillover in the interregional industrial transfer and its effects on productivity using the panel data of two-digit subdivided industries in 30 provinces. The results show that the correlation spillover effect does exist and promotes the interregional textile industry transfer from the eastern coastal region to the central and the northern-coastal regions; the correlation spillover from the related tertiary industries in industrial transfer promotes the TFP of China’s textile industry, but the correlation spillover from the related secondary industries impedes the TFP of the textile industry.
Journal: Applied Economics
Pages: 4492-4506
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2212965
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2212965
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4492-4506
Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211341_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Giuseppe Celi
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Celi
Author-Name: Edgardo Sica
Author-X-Name-First: Edgardo
Author-X-Name-Last: Sica
Title: Migration, exports and capital: what is the impact of ghettos on local firms?
Abstract:
This paper investigates the effects of migration on the export and production techniques of agri-industrial firms in the proximity of clusters of migrants. The analysis draws on an original dataset built through interviews conducted with agri-food firms in the Foggia province (southern Italy). Over the past two decades, this area has experienced a strong influx of migrants, who have concentrated in ghettos. The results do not support a pro-trade effect, but provide evidence for both a substitution and a complementarity effect of migrants on capital endowment, depending on the type of machinery used by the firm.
Journal: Applied Economics
Pages: 4420-4434
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211341
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211341
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4420-4434
Template-Type: ReDIF-Article 1.0
# input file: RAEC_A_2211343_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: James W. Saunoris
Author-X-Name-First: James W.
Author-X-Name-Last: Saunoris
Author-Name: James E. Payne
Author-X-Name-First: James E.
Author-X-Name-Last: Payne
Title: Economic freedom determinants across U.S. states: A Bayesian model averaging approach
Abstract:
This study examines the potential determinants of state-level economic freedom for a panel of the 50 U.S. states from 1994 to 2020. To address model uncertainty in the identification of robust determinants, we use Bayesian model averaging to test the robustness (to the inclusion and exclusion of other determinants) of 17 potential determinants that have been recognized in the extant literature. The results show robustness with respect to the positive impact of the level of per capita real income and its growth, fiscal decentralization and neighbouring state economic freedom, whereas per capita fossil fuel production, population density, unemployment rate and democratic governorships have a negative impact. The remaining determinants were not robustly associated with economic freedom.
Journal: Applied Economics
Pages: 4471-4480
Issue: 37
Volume: 56
Year: 2024
Month: 08
X-DOI: 10.1080/00036846.2023.2211343
File-URL: http://hdl.handle.net/10.1080/00036846.2023.2211343
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:applec:v:56:y:2024:i:37:p:4471-4480